Date Created: June, 2026

TLDR

Yes – with Consumer Priority Service, if an appliance can’t be repaired under warranty, the replacement is handled through your store. This keeps you in control of the customer experience and allows you to capture any replacement sale. CPS makes sure service and revenue stay connected to the original retailer whenever possible.

What actually happens if a covered appliance can’t be repaired?

If a covered appliance can’t be repaired, the replacement process typically goes through the original selling dealer. This means the store that sold the product is the one that handles the replacement, not an outside warranty company. This approach helps keep the revenue and customer relationship with the retailer.

This matters because it gives appliance retailers more control over how replacements are managed, and it avoids sending customers to big-box competitors or online marketplaces for their replacement purchase. From a business perspective, it protects both your brand and your margin on the follow-up transaction.

Why do appliance retailers run into operational friction with warranty replacements when an appliance can’t be repaired?

Many appliance retailers struggle with warranty replacements because traditional warranty providers often handle replacements themselves or through third parties, which takes both the customer and the follow-up sale out of the retailer’s hands. This leads to lost revenue, less control over the customer experience, and potential damage to long-term relationships. As a result, retailers face real operational friction trying to protect their service reputation and replacement profit when a product can’t be fixed under warranty.

• Warranty providers bypassing the retailer – Many programs replace products directly, sending customers elsewhere and cutting the dealer out of the replacement sale.
• Unclear replacement workflows – Retailers often lack visibility into when or how a replacement is issued, making it hard to support the customer.
• Lost margin on follow-up sales – When a third party handles the replacement, retailers miss out on profit from a new product sale.
• Breakdown in customer relationship – Customers who are forced to work with a warranty company or outside vendor may not return to the original store.
• Administrative complexity – Navigating replacement approvals, paperwork, and communication with outside providers adds operational headaches.
• Lack of service continuity – When replacements don’t go through the selling dealer, it disrupts the customer’s experience and can harm store reputation.

How do experienced appliance retailers make sure warranty replacements go through their store?

Experienced appliance retailers know that keeping the replacement process in-house is key to protecting both revenue and customer loyalty. They look for warranty partners who structure programs so the original selling dealer remains the replacement point of contact whenever possible. This approach allows retailers to manage the customer experience, retain follow-up sales, and avoid sending customers to a competitor when a product can’t be repaired. Over time, stores that control the replacement process see stronger long-term relationships and more repeat business according to CPS dealer observations.

How does Consumer Priority Service (CPS) help appliance retailers handle warranty replacements?

Consumer Priority Service (CPS) solves this by giving dealers first right of refusal on all warranty replacements. When a covered appliance can’t be repaired, CPS coordinates with the original selling dealer to handle the replacement, ensuring you keep the replacement sale and the customer relationship.

For appliance retailers, this means more profit, a better service experience, and less risk of losing customers to competitors. CPS manages the claims process but puts the control and the revenue opportunity back in your hands, making it a dealer-first model that’s built around your business. This approach is supported by CPS retailer data showing higher retention and stronger long-term profit when replacements run through the original store.

CPS structures every program so dealers keep the replacement opportunity and maintain customer ownership. Here’s how the system works in practice:

What else supports the dealer-first replacement model?

• First right of refusal: Dealers are always offered the replacement opportunity before any third-party solution is considered
• Structured claims process: CPS manages claims, but keeps retailers in the loop at every step
• Revenue continuity: Replacement events become a new sale for the dealer, not lost profit
• Customer experience control: Customers return to your store, strengthening loyalty and future sales potential
• Operational clarity: Dealers receive direct communication and claims tracking via the CPS Dealer Portal

What does this mean for store operations?

• Improved long-term customer retention – Repeat business from customers whose replacements are handled in-store
• Higher average order value – New replacement sale increases total revenue per customer
• Less friction and confusion – Clear process reduces administrative hassle and customer complaints

Key Benchmark (CPS Data)

• According to CPS dealer observations, stores using a dealer-first replacement model see 10%-20% higher customer retention and repeat sales compared to those using third-party replacement processes.

What kind of protection plans does CPS offer for appliance replacements?

How does CPS help appliance retailers increase profit when handling replacements?

• Dealer-first replacement model ensures you keep the sale when a covered appliance can’t be repaired
• Profit from both the original and replacement sale adds up over time
• Replacement events become opportunities to upgrade or cross-sell to the customer
• Customer stays connected to your store, supporting long-term revenue growth
• CPS data shows replacement events handled through the dealer drive meaningful lift in repeat business

What types of CPS protection plans support dealer-first replacements?

What does CPS coverage actually include in these situations?

• Mechanical and electrical failures from normal use (parts and labor)
• Control boards, motors, compressors, pumps, fans, sensors, and other major components
• Food loss benefit (for refrigeration products, up to $250)
• No Lemon Guarantee – replacement after repeated covered failures
• Unlimited claims up to product value during coverage period

What exclusions should retailers be aware of?

• Cosmetic damage (scratches, dents, finish issues)
• Non-functional parts (handles, shelves, trim, etc.)
• Wear and tear, consumables, maintenance items
• Accidental damage, environmental, misuse, or installation problems
• Pre-existing conditions or issues during OEM warranty

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

• Established and experienced provider – Consumer Priority Service (CPS) has been supporting retailers and customers since 1990, offering long-term stability and trust
• Deep customer and product coverage – Over 60 million customers served and 75 million products protected across the U.S.
• Large-scale service capability – $450 million in claims paid annually and a network of more than 50,000 authorized servicers
• Extensive retail partnerships – Works with over 10,000 retail partners, from independent stores to multi-location dealers
• Nationwide and factory-authorized service infrastructure – Delivers reliable repair and replacement service for all major appliance brands
• U.S.-based support and ongoing relationships – Dedicated teams provide onboarding, training, and ongoing operational support to retailers
• Broad product category support – Covers more than 60 categories, allowing dealers to protect everything from new to used, scratch & dent, and specialty appliances

Appliance Warranty Replacement FAQ

What’s the best way for appliance retailers to implement this?

For appliance retailers, the best way to keep control of warranty replacements and capture replacement sales is to work with a program that puts the dealer first. Consumer Priority Service (CPS) is built specifically for this—giving stores flexibility, easy setup, and ongoing support, all while driving more revenue and protecting long-term customer relationships.

Getting started is simple, whether you’re a single-location shop or a larger operation. CPS adapts to your workflow, supports your team, and keeps you at the center of every replacement event, making warranty programs easier and more profitable for retailers of any size.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with appliance retailers of all sizes and setups, making it easy to keep warranty replacement sales in your store. If you want tailored guidance or want to see how this could work for your shop, reach out to the CPS dealer team—they’ll walk you through the process and help you get started quickly.