Pricing To Make Things Easier For The Customer Warranty
Business

Pricing To Make Things Easier For The Customer Warranty

The other day I was contacting a company to get servicing for an item I bought and I actually purchased its extended warranty plan where they advertise it as a hassle free process where if something was to ever happen they will essentially take care of all the details such as the shipping to make sure it will be hassle free for you. The price didn’t seem too bad too. I guess I kind of found out why though as they had all these clauses where if you purchased the warranty from specific regions then they won’t include certain services.

For example, you could end up having to do all the paperwork yourself with a shipping company. I guess the rationale for the company is if they don’t have a head office at that region then it probably cost them more to service those customers to the point where what they charge for the warranty isn’t enough to balance the expense. So instead they charge the same rate for the service itself but try and pass on the extra expense and work to the customers in those regions.

What a bad way to offer a service in my opinion. I think the better way to do it is if you know there will be extra expenses in having to serve customers in certain areas where you still sell your services to them then you should simply adjust your rates to better reflect the circumstance. For example, if the company normally charges $50 for people within their country of residence then maybe bumping it up to $70 elsewhere to provide the same service would make more sense than passing it off for the customer to handle.

More online stores have been doing this too such as if you are buying something that is across the border they give you the ability to purchase it with an all inclusive payment that guarantees it will cover any duty fees as an example. It’s good to provide that option.

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