…and boost sales
The average family spends $125 per month—that’s $1,500 a year—on home furnishings. With that kind of dough going toward making their homes beautiful, you’d think consumers would rush to protect these purchases.
But despite what seems to be an obvious need for protection, many customers still forego a warranty solution due to some common misconceptions. Here are three obstacles you may need to overcome to make the sale and help keep your customers’ purchases protected.
Myth #1: Protection plans aren’t worth the extra money.
Often true; not every extended furniture warranty solution is truly beneficial. Don’t be afraid to establish trust by explaining where protection may and may not be necessary. For example, when it comes to cosmetic issues like spills, rips, and punctures, added protection could save both time and money. But if the customer is simply concerned about manufacturer defects, they might be clear to stick with the manufacturer warranty.
And don’t rush the explanation just to get to the close. Take a more consultative approach—ask probing questions to discern your customer’s motives before pushing for the sale. Just because you understand the importance of protection, chances are they don’t. Slow down, deliver the pros and cons, and guide them to the sale.
Myth #2: I’m not a clumsy person, so I don’t need this.
To this customer we say, ‘Well, aren’t you lucky?’ It’s amazing how many random mishaps happen every day. From blunders involving kids, food, or guests, to accidental rips and spills, even the most coordinated person will likely encounter at least one furniture mishap. Ask your customers if they are prepared for the ‘what-if.’
Although this question might seem a bit invasive, giving the customer a few examples of situations in which they might need extra protection—like a cocktail party gone wrong, or a toddler that doesn’t know their own strength—can get them thinking. Also, the ease of actually using a furniture protection plan—if something happens, simply file a claim and receive a replacement—can be very attractive. Save time and money? Who doesn’t want that?
[David McMahon: Finish the year strong (and get ready for 2020)]
Myth #3: I automatically have protection through my home insurance.
While this may be true in some cases, home insurance still doesn’t cover everything a furniture warranty will. Every home insurance policy is different, but most only cover damage due to incidents like natural disasters, theft, vandalism, and house fires. But additional furniture protection covers accidents that are technically the owner’s fault—like smashed glass tabletops, or a gash in the couch cushion.
[HFA’s Business Insurance Program saves members thousands of dollars every year]
Get to the heart of the issue and explain the benefits of added protection. And know the gaps. Many home insurance providers even outline their coverage online, so having quick access to those offerings could help you talk through your customers’ coverage with them. If the customer is already protected, dive deeper into their current protection and make sure they understand what happens if they make a claim on their home insurance.
Finally, not only are warranty solutions a good safety net for consumers, they can also be a huge benefit to retailers. One of the most valuable retailer benefits is that warranties cost nothing to sell. And, unlike old merchandise, protection plans don’t depreciate.
Because they’re an inventory item that doesn’t require physical space, they’re a high-margin upsell to potentially deliver large returns.
Being able to debunk common myths can come in handy when speaking with customers who are leery about furniture protection plans. But with benefits for both retailers and customers, warranty solutions are always a safe bet.
