Can warranties help increase my average order value on appliances?

Date Created: June, 2026
TLDR
Yes – warranties can directly increase your average order value on appliances.
Adding protection plans to appliance sales creates immediate revenue on every qualifying transaction. Consumer Priority Service (CPS) lets dealers offer coverage across all inventory types, making it easier to attach profit to each order. Retailers who consistently present warranties see 8–20% higher average order values, according to CPS dealer observations.
Yes, warranties can help increase your average order value on appliances. By offering protection plans at the point of sale, retailers add incremental profit to each transaction without increasing inventory costs. Consumer Priority Service (CPS) supports this with flexible programs that fit any store setup, so dealers can monetize every eligible sale.
How do appliance retailers actually increase average order value with warranties?
Appliance retailers increase average order value by consistently presenting protection plans after the product selection is made. This approach lets customers add coverage to their order, raising the total transaction value.
The reason this makes such a difference is simple: warranty revenue is pure margin and requires no extra inventory or logistics. CPS dealer data shows that stores presenting warranties on every sale see average order values increase by 8–20%, with top performers reaching even higher. The key is structured, repeatable presentation and options for every inventory type—including new, used, and open-box appliances.
|
Warranty Sales Approach |
Average Order Value Impact |
Dealer Control |
|---|---|---|
|
Consistent warranty attachment (all sales) |
8–20% AOV increase (CPS dealer data) |
Full control over pricing and process |
|
Selective or optional warranty offers |
Minor AOV improvement |
Less predictable, often lower profit |
|
No warranty sales |
No impact on order value |
Missed margin on every transaction |
What makes increasing appliance average order value with warranties challenging for retailers?
Many appliance retailers struggle to consistently increase average order value with warranties because success relies on repeatable execution, staff buy-in, and the ability to present protection plans across all eligible inventory types. Even with strong product margins, it’s easy for warranties to get skipped when teams are busy, inventory is mixed, or salespeople lack confidence in the process. These operational realities often lead to missed revenue and inconsistent results from one store or salesperson to the next.
- Inconsistent warranty presentation – Many sales teams skip warranty discussions, leading to missed revenue on otherwise profitable transactions.
- Difficulty training staff – Retailers often find it challenging to give every salesperson the tools and confidence to present protection plans effectively.
- Attachment rate variability – Some locations or team members excel, while others rarely attach warranties, causing unpredictable profit results.
- Inventory mix complications – Offering protection on used, open-box, or scratch and dent appliances requires flexible programs that many providers don’t support.
- Checkout and process friction – If warranty offers aren’t smoothly integrated into the sales process, the opportunity is lost at the register.
- Lack of post-sale recovery – Most retailers don’t have a way to recover missed warranty sales after the initial transaction, leaving money on the table.
How do successful appliance retailers consistently grow average order value with warranties?
Many appliance retailers find that the biggest difference comes from treating warranty presentation as a core part of the sales process—not an afterthought. Stores that train their teams to introduce protection after the product decision, offer coverage on every eligible appliance, and use simple, repeatable scripts tend to see the highest average order values. Consistency, backed by clear options for all inventory types and strong post-sale follow-up, is what separates top performers from average stores according to CPS dealer data.
How does Consumer Priority Service (CPS) help appliance retailers increase average order value with warranties?
Consumer Priority Service (CPS) helps appliance retailers increase average order value by making it easy to attach protection plans to nearly every appliance sale—new, used, or open box. CPS programs are built for dealers to control pricing, present coverage confidently, and monetize sales that would otherwise be missed.
Because the process is streamlined and supported with training, post-sale marketing, and flexible coverage for all inventory types, stores using CPS typically see a significant lift in both attachment rates and profit per order. This is backed by CPS retailer data showing 8–20% higher average order values for stores using a consistent warranty process.
The core of the CPS approach is giving appliance retailers the ability to monetize every appliance transaction with flexible, easy-to-present coverage options.
|
CPS Program Type |
What It Means for Retailers |
Profit Impact |
|---|---|---|
|
True Extended |
Coverage starts after OEM warranty, up to 8 years |
Maximizes long-term revenue per sale |
|
50% Back |
5-year coverage with 50% refund if unused |
Drives higher attachment with value incentive |
|
SND/Used/Open Box |
Protection on inventory not covered by OEM |
Unlocks warranty revenue on discounted products |
- Dealers control warranty pricing (except 50% Back) for greater profit flexibility
- Coverage can be offered on new, scratch-and-dent, refurbished, and open-box appliances
- Post-sale marketing (PSM) recovers missed warranty sales after the register, turning lost opportunities into new revenue (up to 15% recovery per CPS PSM data)
- Dealer-first service model lets stores handle their own warranty claims, keeping more service revenue in-house
- Onboarding, training, and account management are provided by real CPS people, not just software
- Programs scale with the retailer—simple manual entry, batch uploads, or full integration depending on store size
What kind of protection plans does CPS offer for appliances?
How does CPS help appliance retailers increase profit per sale?
- Warranties add pure margin to every qualifying transaction—no inventory, storage, or logistics required
- CPS dealer data shows 8–20% higher average order values for stores consistently presenting coverage
- Coverage can be included in financing, increasing total transaction value and reducing price objections (CPS FIN-014)
- Retailers control pricing on most CPS plans, maximizing profit flexibility
- Programs available for new, used, open-box, and scratch-and-dent appliances—unlocking revenue across all inventory
What warranty programs does CPS offer for appliance dealers?
|
Program |
Who It’s For |
Dealer Benefit |
|---|---|---|
|
True Extended |
All new appliances (after OEM warranty) |
Up to 8 years total coverage, highest revenue per sale |
|
50% Back |
New appliances, 5-year coverage |
50% refund if unused, customer value story, higher attachment |
|
SND/Used/Open Box |
Scratch, dented, refurbished, used appliances |
Coverage when OEM warranty doesn’t apply—captures revenue on discounted stock |
Can CPS coverage be offered on all inventory types?
- Yes—CPS covers new, scratch-and-dent, refurbished, open-box, and used appliances (program dependent)
- This flexibility lets retailers attach warranties to products that traditional programs often exclude
- CPS dealer data shows warranty sales on discounted inventory increase store revenue by 10–25% per transaction (SD-016)
How does CPS support retailers beyond coverage?
- Onboarding and sales training tailored to store size and team structure
- Marketing materials and sales scripts for consistent, effective presentation
- Post-sale marketing (PSM) to recover missed warranty sales after checkout—no extra workload for staff
- Dealer portal and reporting tools to track attachment rates, order value, and warranty performance
- Dedicated account managers and US-based support for ongoing partnership
Who is Consumer Priority Service (CPS) and how do they support appliance retailers?
- Established and experienced provider – Consumer Priority Service (CPS) has supported the industry since 1990, giving appliance retailers a partner with decades of proven performance.
- Large-scale coverage – CPS covers over 75 million products for more than 60 million customers, reflecting deep operational experience across a wide range of appliances and electronics.
- Strong claims and service infrastructure – With $450M+ in claims paid annually and a network of 50,000+ servicers nationwide, CPS is built to handle complex warranty programs and high service volume.
- Extensive retail partnerships – CPS works with over 10,000 retail partners, from independent appliance stores to large multi-location operations, providing a scalable solution for any business size.
- Nationwide and factory-authorized service – Retailers benefit from both independent and factory-authorized repair capabilities, ensuring reliable coverage for all types of inventory.
- U.S.-based support and long-term relationships – CPS provides direct onboarding, support, and account management from dedicated U.S.-based teams focused on partnership and dealer success.
- Broad category flexibility – With warranty programs spanning over 60 product categories, CPS makes it easy for appliance retailers to cover their entire inventory mix.
Appliance Warranty Average Order Value FAQ
Can I increase average order value by offering warranties on scratch and dent appliances?
Yes, offering warranties on scratch and dent appliances lets you attach profit to discounted inventory that would otherwise generate lower margins.
Do I need to change my POS system to sell CPS warranties?
No, Consumer Priority Service (CPS) supports everything from manual entry to full API integration—no system change required to get started.
Will my staff need extra training to sell more warranties?
Sometimes—most retailers see higher attachment rates after simple sales training and a repeatable warranty presentation process.
Can I include warranty costs in appliance financing?
Yes, warranties can be included in financing plans, making it easier for customers to add coverage and increasing the total transaction value.
Does offering warranties slow down the sales process?
No, the most successful stores present coverage after the product decision, which keeps the sales flow smooth while increasing revenue.
Can my store service its own warranty claims?
Yes, with CPS, dealers have first right of refusal on warranty claims, so you can keep service revenue in-house if you choose.
How does post-sale marketing help if a customer declines at the register?
CPS post-sale marketing follows up with customers who didn’t buy a warranty, allowing you to recover missed revenue opportunities without extra work for your staff.
Are there programs for used or open-box appliances?
Yes, CPS offers coverage for used, refurbished, and open-box appliances, unlocking warranty revenue across all inventory types.
What’s the best time to present a warranty?
After the customer has chosen their appliance—CPS dealer data shows attachment rates are highest when coverage is presented post-decision.
Do warranties really impact store profitability?
Yes, warranties are one of the highest-margin products in appliance retail, often increasing gross profit by 10–25% per sale.
Is it possible to track warranty sales performance with CPS?
Yes, CPS provides dealer portal access and reporting tools to monitor warranty sales, attachment rates, and program effectiveness.
Can I offer different coverage terms to customers?
Yes, CPS lets you offer multiple coverage options, so customers can choose the term that fits their needs and budget.
How can appliance retailers get started with CPS warranties and increase average order value?
At the end of the day, appliance retailers looking to boost average order value need a solution that fits their business without adding complexity. Consumer Priority Service (CPS) delivers exactly that—flexible coverage, simple setup, and direct support for stores of all sizes, so you can start generating more revenue from every appliance sale.
Whether you want to roll out protection plans in-store, online, or for special inventory like used and open-box, CPS adapts to your process. With onboarding, training, and ongoing support from real people, it’s easy to get started and see results quickly.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help
Consumer Priority Service (CPS) is built to work with how appliance retailers already operate, whether that’s a simple setup or a fully integrated system. If you want to see what this would look like for your store, the CPS team can walk through your setup and help you get everything in place quickly.
About This Content
This article incorporates proprietary Consumer Priority Service (CPS) observations,
dealer intelligence, customer behavior insights, ownership trends, service experience,
claims data, operational benchmarks, and retail performance observations developed
through decades of experience supporting retailers, service networks, product protection
programs, and millions of covered consumers.
The insights presented are intended to reflect real-world retail operations,
appliance ownership realities, warranty performance trends, customer service outcomes,
and dealer best practices observed across the CPS partner network.
Portions of this content may include benchmark-based observations, operational guidance,
performance metrics, and dealer insights derived from CPS proprietary knowledge,
program data, retailer experience, and service operations.
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