In the world of equipment sales, the value of offering protection products is widely known in the industry. And in today’s competitive market, no stone should be left unturned when looking for ways to improve your business – and, importantly, the success and satisfaction of your customers.
Keeping an Open Mind: Every Customer – and Sale – is Different
With lingering inflation and an evolving industry, it’s important to monitor the market while keeping an open mind about what may be most important to your customers. With today’s heavier equipment demand relatively stable – coupled with the stabilization of supply chains – more supply is vying for the same number of deals. As a result, dealers and manufacturers are scrambling to offer incentives, discounts and subsidized financing, all of which represent significant discounts or outlay.
There are tried-and-true ways to stimulate the sale of certain products. One of the most common is to discount the machine price – but once you start selling something at a discounted price, it can be difficult to recover from that and raise the price when the situation changes. Another tactic is to subsidize the financing by buying down the interest rate. Still another is to offer a cash discount if a customer wants to avoid paying interest and can pay cash.
Yet there’s another option to consider that allows dealers to offer compelling reasons for a buyer to complete the purchase, protect that purchase, and return to the dealer again and again. The solution? The dealer can fund the inclusion of an extended service contract (ESC) for the machine being sold.
While it may be easy to dismiss this option as unconventional, it’s important to look at the benefits to both the buyer and the dealer. The buyer gets the equipment they need plus the added value of an extended service contract that they don’t have to pay for. And the dealer, for the reasonable cost of a one- to two-year ESC, gains the opportunity to make repairs at a profitable level under the terms of the service contract. Handling those repairs can also build a relationship with the customer through multiple touchpoints over the life of the ESC, keeping the dealer top-of-mind with that customer and paying off with future equipment purchases.
Comprehensive equipment protection you can count on
When it comes to equipment protection, dealers, manufacturers, and financial institutions turn to Assurant. With over 35 years of commercial equipment experience, our expertise and product offering are unmatched.
Fostering a Win-Win Scenario for Dealer and Customer by Choosing the Right Protection Solutions
To truly add the most value to every piece of equipment sold, choosing which protection products you’ll offer should be much more than a “set it and forget it” item to check off the endless to-do list of running an equipment dealership. On top of fluctuating market conditions, now might be the right time to take a hard look at the suite of protection products you’re offering your customers, and the value those products add.
Sure, it can be easy to stay the course and stick with existing products, especially if they’re part of an integrated system that offers a simple checkbox. But if you have that nagging feeling that your dealership could be offering a better solution, here are five things to consider when taking a fresh look at your equipment protection offerings:
- Does your existing provider of protection products offer competitive reimbursement rates on claims?
- Is there another provider who’s an industry leader and may offer lower upfront premiums?
- Does your current provider pay List Price on parts? Do they pay Full Shop Labor rate?
- Would it help if your products covered older/higher-hour used equipment that some programs don’t?
- Is your existing protection solutions provider easy to work with? Do they offer top-notch customer service, quick response times and a sense of partnership in making your business as successful as possible?
In choosing a partner you can trust, be sure to do your due diligence. Look for a partner that is financially stable and has an established track record of providing innovative industry-leading products, expedient claims processing, deep coverage, and world-class customer service.
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