Date Created: June, 2026

TLDR

Yes, you can offer protection plans on clearance, scratch and dent, and floor model appliances. These products are usually excluded from manufacturer coverage, so extended warranties fill a critical gap for both the store and the customer. Consumer Priority Service (CPS) lets you cover discounted, open box, and used appliances, giving you a way to add revenue and help customers feel more confident in their purchase.

What types of warranty programs can retailers offer on clearance or floor model appliances?

Yes, appliance retailers can offer a range of protection plans for clearance, floor model, and discounted appliances.

Many stores run into problems when discounted or open box inventory doesn’t qualify for the manufacturer’s warranty. This can make it harder to move these products and usually means lost warranty revenue. With Consumer Priority Service, retailers can attach coverage to these units, helping recover profit and address customer concerns about post-sale support.

• True Extended Plans – Coverage that starts after any remaining manufacturer warranty and can run up to 8 years from the purchase date.
• 50% Back Program – 5-year plans that refund half the cost if unused, starting after OEM coverage.
• Scratch & Dent / Open Box / Used Coverage – Dedicated plans for inventory with limited or no OEM warranty, starting day 31 with a flat deductible.

According to CPS dealer data, offering protection on open box and scratch & dent inventory increases warranty revenue by 12–28% and helps move discounted inventory 5–15% faster compared to stores that don’t offer coverage.

Why is offering warranties on clearance or floor model appliances challenging for appliance retailers?

Many appliance retailers find that offering warranties on clearance, scratch and dent, or floor model appliances is challenging because most traditional warranty providers and manufacturers exclude these products from coverage. This creates operational headaches, inconsistent customer experiences, and missed revenue opportunities, particularly as more inventory is discounted or comes from scratch and dent sources. The challenge is making sure protection options are available—and profitable—across all inventory types without adding complexity or risk for the business.

• Most traditional warranty providers exclude clearance, scratch and dent, open box, and used appliances—leaving retailers with no coverage to offer
• Inconsistent coverage rules and eligibility requirements make it confusing for staff and customers to know what’s covered
• Lack of warranty options on discounted inventory means lost profit on products already sold at lower margins
• Retailers face increased customer hesitation when no protection is available for floor models or open box appliances
• Operational complexity increases when different inventory types require different warranty workflows
• Uncertainty about service and claims handling for non-new products can create reputational and support risks

How do experienced appliance retailers successfully offer warranties on clearance, scratch and dent, or floor model appliances?

Experienced appliance retailers often prioritize warranty programs that allow them to cover all inventory types—including clearance, scratch and dent, open box, and used appliances—using a single process. They look for providers that make it easy to add coverage to these units without extra paperwork or complicated eligibility checks. In practice, retailers who consistently offer protection on discounted inventory see higher attachment rates, move inventory faster, and recover margin that would otherwise be lost to discounting, according to CPS dealer observations.

How does Consumer Priority Service (CPS) help appliance retailers handle warranties for clearance and floor model appliances?

Many appliance retailers struggle to find warranty solutions that work for scratch and dent, open box, or used appliances because most traditional programs only cover new inventory. Consumer Priority Service (CPS) solves this by offering dedicated coverage for SND, open box, and used appliances as well as standard new inventory. Dealers can use the same process for all categories, which makes it simple to increase profit across the entire floor without extra steps or staff training.

CPS programs are designed so retailers can attach coverage to almost any unit—new or discounted—while controlling pricing and retaining service revenue when possible. This approach helps stores monetize inventory that would typically be excluded from warranty profit and gives customers a clear choice to protect their purchase, no matter the condition.

CPS Warranty Program Coverage Types

How CPS Makes It Easy for Dealers

• Single order process for all inventory types (no separate workflows for SND or open box)
• Flat-rate pricing and coverage across categories—no extra markup or tiered pricing headaches
• Dealers keep control over retail pricing (in most programs) and can retain service revenue through first-right-of-refusal
• Coverage can be added up to 90 days before OEM warranty expires, or for products with no OEM coverage at all
• Simple claims handling—customers contact CPS directly; store can participate in service if desired
• Post-sale marketing (PSM) helps recover missed warranty sales on discounted inventory

What kind of protection plans does CPS offer for clearance and floor model appliances?

How does CPS help appliance retailers increase profit on clearance and floor model appliances?

• Allows warranty sales on discounted, SND, open box, and used inventory—unlocking revenue that’s typically lost
• Applies a single workflow for all inventory, reducing training and operational headache
• Dealers control retail pricing and can retain service revenue if they service their own claims
• Higher attachment rates and faster inventory turns, as observed by CPS dealer data (12–28% revenue increase on discounted inventory)
• Works for both new and non-new inventory, creating a consistent customer experience

What coverage options can retailers choose from for these units?

How does CPS handle claims for discounted inventory?

• Customers file claims directly with CPS—by phone, web, text, or email
• Dealer can service their own claims (first right of refusal) and keep service revenue
• CPS coordinates repair or replacement through authorized networks if dealer does not service
• Full support provided to both dealer and customer throughout the process

Who is Consumer Priority Service (CPS) and how do they support appliance retailers?

• Established and experienced provider – Consumer Priority Service (CPS) has been operating since 1990, giving appliance retailers a long-term, proven partner
• Large-scale customer and product coverage – CPS has covered over 75 million products for 60 million+ customers, reflecting deep operational experience
• Strong claims and service infrastructure – CPS pays out $450 million in claims annually and supports a network of over 50,000 servicers nationwide
• Extensive retail partnerships – More than 10,000 retail partners work with CPS, from independent stores to multi-location chains
• Nationwide and factory-authorized repair capabilities – CPS supports both independent and factory-authorized service, ensuring reliable repairs
• U.S.-based support and long-term relationships – Retailers get onboarding, training, and ongoing support from a dedicated U.S.-based team
• Broad coverage across product categories – CPS supports protection plans for over 60 product categories, making it easy to cover any appliance inventory

Clearance and Floor Model Appliance Warranty FAQ

• Q: Can I offer warranties on used appliances in my store?
  A: Yes, Consumer Priority Service (CPS) offers coverage options for used, open box, and refurbished appliances.
• Q: Are scratch and dent appliances eligible for extended protection plans?
  A: Yes, CPS allows coverage for scratch and dent inventory even when there’s no OEM warranty left.
• Q: Do I need a special process to sell warranties on discounted appliances?
  A: No, CPS uses the same workflow for new, clearance, and open box inventory.
• Q: Can I set my own pricing on these protection plans?
  A: Yes, most CPS programs let dealers control retail pricing for maximum profit flexibility.
• Q: Does warranty coverage start immediately on floor models?
  A: Coverage for used or discounted appliances typically starts on day 31 after purchase with a small deductible.
• Q: Can my store service its own warranty claims?
  A: Yes, retailers have first right of refusal to service their own claims and keep service revenue when working with CPS.
• Q: What happens if a customer didn’t buy a warranty on a clearance item at checkout?
  A: CPS offers post-sale marketing to help recover missed warranty sales after the original transaction.
• Q: Are claims handled differently for discounted inventory?
  A: No, customers file claims directly with CPS, and the process is the same as for new inventory.
• Q: Is there a deductible for scratch and dent appliance coverage?
  A: Yes, CPS SND/open box/used programs include a flat $99 deductible per claim.
• Q: Can I offer protection plans on appliances with no manufacturer warranty left?
  A: Yes, the CPS SND/used/open box program is designed for units with no remaining OEM coverage.
• Q: Does offering protection on clearance appliances help move inventory?
  A: Yes, CPS dealer data shows warranty availability improves sell-through rates and customer confidence for discounted inventory.
• Q: Is there a minimum order or store size to participate?
  A: No, CPS works with both small independent retailers and large multi-location stores.

How can appliance stores get started with this?

At the end of the day, appliance retailers want a way to boost revenue and support customers on every sale—including clearance, floor models, and open box inventory. Consumer Priority Service (CPS) is designed to let you offer protection plans on nearly any appliance, using simple workflows and flexible onboarding.

Whether you’re a single-store operation or a larger retailer, CPS adapts to your process and provides U.S.-based support, training, and operational guidance to make warranty attachment easy. The result is more profit and a better customer experience, without added complexity.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with how appliance retailers already operate, from simple setups to fully integrated systems. If you want tailored guidance or want to see how this fits your store, reach out to the CPS team and they’ll help get you started quickly.