Flexible Service Contracts: The Great Differentiator

By Michael Israel, Head of Field Service Evangelism, Zuper

Buying a brand new dishwasher is an exciting moment. You no longer have to wash your dishes by hand and your post-dinner cleanup time is cut in half. But what happens when the dishwasher stops working and needs to be serviced? We’ve all experienced Murphy’s Law in an appliance or product breaking the day after the manufacturer warranty expires. Now imagine if you are in charge of facilities management for an office or residential complex, or own a chain of gas stations or convenience stores where you deal with multiple HVAC, plumbing, refrigeration, point of sale machines, and other equipment.

This is where service contracts–also known as extended warranties, service agreements or maintenance contracts–come into the picture. Service contracts allow customers to receive post-sales service to fix or repair products after purchasing. In the case of that dishwasher, a consumer who paid an extra fee at purchase time, for such an extended contract would allow that purchaser to recoup the benefits of service. For the gas station or convenience store owner, this would enable them to get equipment fixed quickly as their business and sales depend on it.