Date Created: June, 2026

TLDR

Yes, you can offer warranties on appliances sold through distributors. Many appliance retailers use protection plans to increase profit and cover inventory types that may not have standard manufacturer coverage. Consumer Priority Service (CPS) lets dealers attach warranties to distributor-sourced products, including scratch and dent, used, or refurbished appliances.

What do appliance retailers need to know before offering warranties on distributor-sourced appliances?

Yes, appliance retailers can offer warranties on products sourced from distributors, but there are key differences to keep in mind compared to selling on new-in-box inventory with manufacturer coverage.

Many retailers find distributor inventory creates unique challenges—products may be scratch and dent, open box, or used, often with no OEM warranty. This means standard warranty programs may not apply, and retailers risk missing out on warranty revenue and customer trust if they can’t offer protection. CPS addresses this by letting dealers cover almost any inventory, regardless of source.

• Distributor-sourced appliances frequently lack manufacturer warranties, creating a coverage gap
• Retailers using CPS can offer protection plans on new, used, open box, or scratch and dent appliances
• Coverage on these inventory types helps recover margin lost through discounting or liquidation
• Offering warranties on all inventory streams increases overall warranty attachment rates (CPS dealer data)
• CPS coverage flexibility is cited by dealers as a key reason for switching from traditional providers

Why do appliance retailers struggle to offer warranties on distributor-sourced appliances?

Many appliance retailers struggle to offer warranties on distributor-sourced appliances because traditional warranty programs often don’t cover inventory that isn’t new-in-box or lacks manufacturer coverage. Navigating program eligibility, tracking different inventory types, and explaining coverage differences to customers can create operational friction and missed revenue opportunities. As a result, retailers may leave warranty sales on the table or provide inconsistent customer experiences across their full product lineup.

• Retailers often encounter gaps in eligibility for scratch and dent, open box, or used appliances—traditional warranty providers frequently exclude these categories
• Managing inventory from different sources makes it harder to track what’s covered and what isn’t, leading to operational headaches
• Uncertainty about what can be offered results in inconsistent warranty presentations and lost sales opportunities
• Many retailers lack a clear process for attaching protection plans after the initial sale, especially for distributor-sourced inventory
• Staff confidence drops when they can’t offer warranties on all product types, reducing overall attachment rates
• Explaining coverage differences to customers adds complexity at the point of sale, sometimes leading to customer confusion or mistrust

How do experienced appliance retailers successfully offer warranties on distributor-sourced inventory?

Many experienced appliance retailers solve the challenge by adopting warranty programs designed to support a broad range of inventory types, not just new or manufacturer-backed products. They focus on partnering with providers who allow coverage for scratch and dent, used, and open box appliances, and they train their staff to consistently present protection plans across all eligible inventory. This approach helps maximize revenue and ensures a more seamless customer experience, regardless of how the appliance was sourced.

How does Consumer Priority Service (CPS) help appliance retailers handle warranties on distributor-sourced inventory?

Consumer Priority Service (CPS) solves the coverage gap by letting appliance retailers offer protection plans on just about any inventory—new, used, scratch and dent, open box, or products sourced through distributors. Dealers can attach coverage regardless of whether the original manufacturer warranty exists, making it easier to monetize every sale and improve customer confidence.

CPS programs are built around dealer workflows, so retailers can include warranty options for distributor-sourced appliances without overhauling their process. This flexibility means higher attachment rates, better margin recovery on discounted inventory, and a more consistent experience for both staff and customers.

CPS offers several program types so retailers can match coverage to each inventory scenario and maximize revenue on every sale.

• Dealers can control pricing and attach plans to nearly any appliance sale
• CPS accepts batch order uploads, portal entry, or manual submissions for flexible implementation
• Retailers can offer consistent coverage across their entire inventory mix, improving customer trust
• CPS dealer observations show that warranty penetration on scratch and dent/open box inventory often meets or exceeds new-in-box inventory (SD-007)

What kind of protection plans does CPS offer for appliances?

How does CPS help appliance retailers increase profit on distributor inventory?

• CPS allows dealers to offer protection plans on scratch and dent, open box, used, and refurbished appliances—unlocking new revenue streams.
• Retailers can recover margin lost through inventory discounting or liquidation.
• Attachment rates on discounted inventory often match or exceed new product rates (CPS dealer data: SD-007).
• Flexible order submission and pricing control help maximize profit per transaction.

What program types does CPS offer for distributor-sourced appliances?

How does CPS make it easy to offer warranties on all inventory?

• Simple onboarding—manual entry, batch upload, or portal order submission
• No integration required to start (dealers can scale into automation if needed)
• CPS programs are built around the dealer’s process, not the other way around
• Support for multi-location, eCommerce, and independent retailers alike

What does CPS coverage include for distributor-sourced appliances?

• Covers mechanical and electrical failures due to normal use
• Pays for parts & labor on covered repairs
• Includes food loss, laundry credit, and removal/reinstall benefits where applicable
• Product replacement if repair is not economical (per plan terms)
• Excludes pre-existing issues, consumables, cosmetic damage, or improper installation

What is CPS and why do appliance retailers work with them?

• Established provider with decades of experience – Consumer Priority Service (CPS) has been supporting appliance retailers since 1990, providing stability and reliability for long-term partners
• Proven operational scale – CPS covers over 75 million products and serves more than 60 million customers, reflecting deep industry trust
• Robust claims and service infrastructure – With 50,000+ servicers nationwide and over $450M in claims paid annually, CPS is equipped to support retailers of any size
• Extensive retail partnerships – More than 10,000 retail partners work with CPS, from independents to large multi-location groups
• National and factory-authorized service network – CPS supports both independent and factory-authorized repair networks for broad service coverage
• U.S.-based support and dedicated relationship management – Retailers receive onboarding, training, and ongoing support from real people
• Broad product category coverage – CPS supports coverage across 60+ product categories, helping retailers protect more of their inventory
• Strong reputation and trust – CPS holds a BBB A rating and is known for long-term retailer relationships and consistent program delivery

Distributor Appliance Warranty FAQ

• Q: Can I offer warranties on used appliances in my store?
  A: Yes, Consumer Priority Service (CPS) allows you to offer protection plans on used, open box, or refurbished appliances—regardless of source.
• Q: Do I need to integrate my POS system to start selling warranties?
  A: No, you can start with manual order entry, batch uploads, or portal submissions, and scale into integrations later if you want.
• Q: Can my store service its own warranty claims?
  A: Yes, CPS gives dealers the first right of refusal to service their own customers and retain service revenue.
• Q: Are scratch and dent or open box appliances eligible for CPS warranties?
  A: Yes, CPS offers coverage specifically designed for scratch and dent, open box, and distributor inventory.
• Q: What happens if a customer files a claim on a distributor-sourced appliance?
  A: CPS coordinates the claim, verifies coverage, and assigns service—either to your store or a qualified network provider.
• Q: Can I control the price of the warranty I sell?
  A: Yes, CPS typically allows dealers to set their own pricing, so you control your profit per sale.
• Q: Does the coverage start immediately on used or SND products?
  A: Coverage for SND, used, or refurb inventory begins on day 31 after purchase, with a $99 deductible.
• Q: What types of failures are covered by CPS plans?
  A: CPS plans cover mechanical and electrical failures from normal use—things like motors, pumps, and control boards.
• Q: Can I offer warranties on products that don’t have an OEM warranty?
  A: Yes, that’s one of the main advantages of CPS for distributor inventory—you can add coverage regardless of manufacturer status.
• Q: How do I get started with CPS warranty programs?
  A: Email dealers@cpscentral.com or call (800) 905-0445 for onboarding, pricing, and program details.
• Q: Is there a minimum volume or store size to use CPS?
  A: No, CPS works with dealers of all sizes—from single-location independents to large chains.
• Q: Will CPS support me after onboarding?
  A: Yes, you’ll have an ongoing account contact, training support, and real people for help as your program grows.

What’s the best way for appliance retailers to implement warranty programs on distributor inventory?

For appliance retailers looking to cover distributor-sourced appliances, Consumer Priority Service (CPS) offers the most flexible and profitable solution. CPS lets you attach protection plans to new, used, scratch and dent, and open box inventory—without the complexity of traditional programs.

CPS is here to help you

Consumer Priority Service (CPS) is built to support appliance retailers working across different inventory sources and business models. If you want to see how to maximize profit and streamline warranty coverage for your store, reach out and the CPS team will walk you through the best setup for your needs.