SHOPFLOOR ANALYSIS | Warranties and guarantees


‘No money back, NO GUARANTEE’


Toby Griffin investigates the importance of guarantees and warranties to the KBB sector. What do they mean for retailers and what value do they add to the sales story?


life, only strong possibilities”. So, although a manufacturer might have made a product to the highest quality, no-one can say for sure that it will last a decade, a year, a month, or even be working on installation. To reassure customers that they


A


are buying a well-made product, and that they won’t be left high and dry, guarantees are legal agreements made to assure a purchaser that an item will be fixed, replaced or refunded if it fails within a certain time period; and have become expected since the advent of consumer rights. With an assumption by the general public that some sort of guarantee is in place for every order they place with a KBB retailer, what’s fascinating is - in researching for this analysis - the variety


of guarantees that are


available in our industry, what they cover, and how they are implemented. To start then, it is important to understand what legal rights customers have. Let’s get a quick overview of the UK’s Consumer Rights Act. First of all, of course, goods should be of a satisfactory quality. Simple. They should be fit for purpose. Tick. And


finally, they should be as


described. All pretty straight-forward. Then it starts to get a bit more


interesting. If what has been bought doesn’t satisfy any one of the three criteria outlined above, then the


ccording to author Morgan Rhodes: “There are no guarantees in


retailer that sold it is responsible. It’s easy to try to pass the buck on to the manufacturer, but - at the end of the day – if they were dissatisfied with the product, the customer’s legal dispute


would and be


with the retailer. Next it becomes more nuanced,


the


following section is vital for retailers to understand. Within thirty days of taking ownership of a product (date of purchase or delivery date, whichever is later) the customer has a right to reject a faulty product and claim a refund. Then between one month and six months - if an attempt at a repair or replacement is unsuccessful - the retailer must offer a refund, unless they can prove that the product was of satisfactory quality on delivery. Notably the retailer can’t make any deductions from a refund in this instance. After six months, if a defect develops, the burden is on the customer to prove that the product was faulty at the time the goods were delivered to them, which in practice may require some form of expert report, opinion or evidence of similar problems or defects across the product range. This legal protection for the consumer lasts up to six years (five in Scotland). Often not known by


We are always ‘treading through the broken glass’ of customer sensibilities, as you don’t want them to bad-mouth you, even if they are in the wrong Trevor Scott, CEO, RFK


retailers is that in these instances between six months and six years they can make a deduction from any refund for fair use, so for example, if an oven packs up after three years, the retailer could argue that half of its lifespan has passed, and therefore only offer a 50% refund. Bear in mind though that


a civil court


judge would be the final arbiter on these matters, and the retailer must always demonstrate


that


their decision was reasonable.


The end customer


is already quite well protected by law, so


you’d be forgiven for asking why product guarantees are sought by consumers? From the frontline of kitchen sales, Paul Cockerill, kitchen designer, Huws Gray explains: “In this day and age warranties are


important. I am getting the question more and more from customers and with the cost-of-living crisis, people are thinking more about this.” Tyler McLaughlin, a designer at


Wren Kitchens, agrees: “I think most people will be put off a product/ service if there is no warranty in place. The fear of extra costs and spoiled experiences make people hesitant to buy without knowing they are covered in the long term by even the barest minimum warranty”. Interestingly, in the minds of both the general public, and retailers, the use of the terms “guarantee” and “warranty”


can start to become


somewhat interchangeable as they both provide back-up in the event of a fault occurring; but in the UK there is a defined difference between them. According to Which? guarantees are usually free and offered by the manufacturer and are an assurance regarding quality and lifespan with a promise to repair or replace if the product doesn’t live up to the billing; whereas warranties are akin to an insurance policy and are often not free. Notably most home contents insurance policies appliance breakdown.


don’t cover


Lengths of guarantees vary hugely in our sector, with product type and brand being the main differentiators.


LIFETIME GUARANTEE LAST?’


‘The customer’s lifetime’


43%


‘The product’s lifetime’


37% ‘HOW LONG SHOULD A


30


· January 2023


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