retail finance and warranties introduction
warranties like an accessory and simply try to attach it at the end of a sale, warranty penetration generally runs between 1% and 3% of major appliance sales. This figure increases to around 5% with good staff training
“For those retailers who view ”
Ensuring staff are well trained on warranty sales, knowing when and how to bring it into the pitch and how to best close the deal are all essential techniques that need constantly refreshing and updating. To achieve this across all staff, the business needs to put a real focus on warranty sales, including regular briefings, incentives and even staff-by-staff or shop-by- shop league tables of warranties sold. There is a wide variance across retailers in percentage penetration, that is the number of warranties written against the number of major appliances sold. For those retailers who view warranties like an accessory and simply try to attach it at the end of a sale, warranty
penetration generally runs between 1% and 3% of major appliance sales. This figure increases to around 5% with good staff training and can approach 6%-7% with a general focus on warranty sales as part of the business.
Businesses that really get behind warranty sales benefit from even higher penetration. By training and briefing staff weekly, generating league table competitions and incentivising warranty sales with good commission and major prizes for top performing staff, penetration into double-digits is not uncommon with peak months hitting 15% or more. And this can be achieved without staff being ‘pushy’ or the business seeing any decline in core products sales.
If you are not getting close to these figures it is time to consider outside help. All of the major warranty providers serving the electrical retail sector have strong sales training programs, often free of charge. Getting in on these training initiatives, building warranties into business culture and properly incentivising shop-floor staff will see your warranty penetration and bottom line climb accordingly. As the UK public spends around £750m a year on electrical goods warranties there is plenty of pie from which to increase the size of your slice. ■
Pay4Later 0% finance PoS card IndependentElectricalRetailer 22 SalesTrainingGuide12
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