Can my service department perform warranty repairs?

Date Created: June, 2026


TLDR

Yes – your service department can perform warranty repairs under CPS programs.

CPS gives appliance retailers the first right of refusal on service claims, so your team can handle repairs and capture both warranty and service revenue. Consumer Priority Service coordinates everything, but dealers who want to do their own work stay in control. This approach is designed to keep service business in your store.

Yes, appliance retailers with service departments are encouraged to perform warranty repairs for products covered under CPS protection plans. Consumer Priority Service gives dealers the first right of refusal on claims, allowing your team to handle eligible repairs and keep the service revenue in-house. CPS coordinates claim approval and supports the process, but the dealer decides whether to complete the repair or refer it to the broader network. This model helps retailers maximize both warranty sales and service department profitability while maintaining control over the customer relationship.

How does the CPS First Right of Refusal process work for service departments?

CPS gives appliance retailers with service departments the first opportunity to perform warranty repairs on products sold with CPS coverage. When a customer files a claim, CPS reaches out to the selling dealer and offers them the chance to handle the repair. If the dealer chooses to complete the service, they retain the service revenue and manage the customer experience. If the dealer declines or cannot perform the repair, CPS coordinates an authorized service provider from its nationwide network to handle the claim instead.

  • Dealers are notified first for every claim related to their sales
  • Service revenue stays with the retailer if they accept the job
  • CPS manages all claim administration and support
  • If the dealer declines, CPS assigns another qualified provider
  • This approach supports both dealer-operated and outsourced service models

Step

What Happens

Claim Filed

Customer contacts CPS to report the issue and initiate a claim.

Dealer Notified

Dealer receives first right of refusal to service the claim.

Dealer Accepts

If dealer accepts, they perform the repair and bill CPS.

Dealer Declines

If dealer declines, CPS assigns an authorized service provider.

Claim Completion

Repair is completed and claim is closed; dealer retains service revenue if they performed the work.

Why do appliance retailers use the CPS First Right of Refusal model for warranty repairs?

Many appliance retailers use the CPS First Right of Refusal model because it allows them to capture additional service revenue, maintain direct control over the customer experience, and leverage their own service departments for warranty repairs. By giving dealers the option to handle claims before involving outside networks, Consumer Priority Service helps stores maximize profitability and strengthen post-sale relationships. This structure also supports operational flexibility, letting each retailer decide when to handle repairs in-house and when to rely on CPS’s nationwide service infrastructure.

  • Captures additional service revenue for the retailer—dealers keep repair profits on eligible warranty claims
  • Strengthens customer relationships by keeping service in-house—retailers maintain direct contact with their customers
  • Provides operational flexibility—dealers can choose which repairs to handle and which to refer out
  • Streamlines claims administration—CPS manages claim approval and paperwork, reducing dealer workload
  • Supports dealer reputation—customers associate positive warranty service directly with the selling retailer
  • Aligns with CPS dealer benchmarks—retailers servicing their own claims see higher retention and repeat business

How do appliance retailers typically use the CPS First Right of Refusal service model?

Many appliance retailers take advantage of the CPS First Right of Refusal model by having their service departments handle the majority of warranty repairs for products they sell. Dealers often find that managing these claims in-house not only increases their service revenue but also deepens customer loyalty, since customers appreciate working with the original retailer for post-sale support. CPS retailer data shows that stores actively participating in the process tend to experience higher customer retention and a stronger reputation in their local market compared to those who outsource all service work.

How does the CPS First Right of Refusal process work for warranty repairs?

Consumer Priority Service (CPS) gives appliance retailers the first opportunity to perform warranty repairs through its First Right of Refusal process. When a customer files a claim, CPS immediately notifies the selling dealer and offers them the chance to complete the repair. If the dealer’s service department handles the job, they invoice CPS and keep the service revenue. If the dealer prefers not to perform the repair, CPS assigns an authorized service provider from its national network to ensure the customer is still taken care of.

This workflow allows dealers to maximize both warranty and service profits, while also giving them flexibility to choose which repairs to keep in-house. Dealers who regularly participate in the CPS claims process often see higher customer retention and improved service department utilization, based on CPS retailer observations and service data.

Key Features of the CPS First Right of Refusal Service Model

  • Dealer-First Claim Assignment: Dealers are given the first opportunity to service claims related to their own sales.
  • Service Department Revenue: Dealers keep the repair revenue when they handle eligible claims in-house.
  • CPS Claim Administration: CPS manages claim intake, approval, and customer communications, reducing dealer administration.
  • Flexible Participation: Dealers choose on a claim-by-claim basis whether to accept or refer out repairs.
  • Nationwide Backup: If the dealer declines, CPS assigns a qualified provider from its national network to complete the repair.
  • Customer Experience Control: Direct handling of repairs helps retailers build long-term loyalty and repeat business.

Operational Workflow

Step

Description

Claim Initiation

Customer contacts CPS to report a problem

First Right of Refusal

CPS notifies selling dealer for opportunity to service

Dealer Decision

Dealer accepts and completes repair, or declines

CPS Backup Assignment

If declined, CPS assigns another qualified provider

Claim Resolution

Repair is completed, claim is closed, and dealer is paid if they performed the service

What does CPS typically cover for appliance retailers?

CPS coverage is designed to protect against major mechanical and electrical failures after the manufacturer warranty expires, but it does not cover everything. Here’s a breakdown of what’s included and what’s excluded under Consumer Priority Service appliance programs.

What Does CPS Cover?

  • Mechanical and electrical failures from normal use (motors, compressors, pumps, control boards)
  • Parts and labor for covered repairs
  • Service coordination and claims administration by CPS
  • Replacement or reimbursement if a repair is not feasible
  • Coverage options available for new, open-box, scratch-and-dent, refurbished, and used appliances (with qualifying program)

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, chips, rust, appearance-only issues)
  • Non-functional parts (handles, knobs, shelves, decorative trim)
  • Consumable and wear items (filters, bulbs, batteries, belts, gaskets)
  • Accidental damage, misuse, abuse, or neglect
  • Environmental events (flood, fire, storm, power surges, installation-related problems)
  • Pre-existing conditions or issues already present before coverage started

How does the CPS claims process work for dealer-serviced warranty repairs?

When a customer experiences a covered failure, they contact CPS by phone, web, text, or portal to initiate a claim. CPS reviews the claim details, verifies coverage, and immediately notifies the selling dealer’s service department, offering them the first opportunity to handle the repair.

If the dealer accepts the claim, they perform the repair and bill CPS directly. If the dealer declines, CPS assigns an authorized service provider to complete the job. This process keeps most service events in the retailer’s control while reducing administrative workload and helping maintain customer satisfaction.

Step

What Happens

Claim Initiation

Customer contacts CPS to report a covered appliance issue.

Claim Review

CPS verifies coverage and confirms repair eligibility.

Dealer Notification

Dealer’s service department is offered first right to perform the repair.

Service Assignment

Dealer accepts and completes repair, or CPS assigns another provider if declined.

Repair or Replacement

Appliance is repaired or replaced per coverage terms.

Claim Resolution

Claim is closed and customer is notified when service is complete.

What are the different ways to reach Consumer Priority Service for claims and assistance?

Consumer Priority Service makes it easy for customers, dealers, and service centers to get support, with multiple contact options available for every need.

Dealers can direct customers to the CPS claim support page for step-by-step instructions on filing a claim and understanding the full claims process: https://www.cpscentral.com/how-to-file-a-claim/

Customers

  • Phone – (800) 905-0443
  • Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
  • CPS Client Care Portal – https://client.cpscentral.com/
  • Text – Send a text to (347) 621-7180
  • Facebook Chat – http://m.me/ConsumerPriorityService
  • Email – cs@cpscentral.com

Dealers

Service Centers

How does the CPS First Right of Refusal service model compare to manufacturer warranties and traditional warranty programs?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS First Right of Refusal

Who Performs Repairs

Manufacturer service network only

Warranty provider assigns service

Dealer has first right to repair; CPS assigns if declined

Dealer Service Revenue

Dealer rarely involved

Dealer may receive some referrals

Dealer keeps service revenue when accepting claims

Claims Administration

Managed by manufacturer

Handled by warranty provider

CPS manages claims but keeps the dealer in the loop

Customer Experience

Typically disconnected from dealer

Varies; often outside dealer control

Dealer can maintain customer relationship throughout

Operational Flexibility

Fixed process

Limited dealer participation

Dealer chooses case-by-case to accept or decline service

Retailer Benefit

Product sale only

Warranty sale; limited service revenue

Warranty sale and full service revenue opportunity

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

  • Established and experienced provider – Consumer Priority Service (CPS) has operated since 1990, giving appliance retailers a trusted, long-term partner for warranty programs
  • Large-scale reach and trust – CPS has served over 60 million customers and covered more than 75 million products, showing extensive operational experience
  • Proven claims infrastructure – With over $450M in claims paid annually and a network of 50,000+ servicers, CPS is built for reliability and scale
  • Strong retail partnerships – More than 10,000 retail partners work with CPS, including single-location stores and large multi-location operations
  • Nationwide and factory-authorized service – CPS leverages both independent and factory-authorized repair networks to provide consistent support
  • Dedicated U.S.-based support – Appliance retailers benefit from direct, ongoing support from CPS’s U.S.-based teams
  • Broad category flexibility – CPS supports warranties across 60+ product categories, making it easy for retailers to cover their full inventory

CPS First Right of Refusal FAQ

Can my service department perform warranty repairs for CPS coverage?

Yes, CPS encourages dealers with service departments to perform covered repairs and gives them the first right of refusal on all eligible claims.

How does the first right of refusal process work?

When a claim is filed, CPS notifies the selling dealer and offers them the opportunity to handle the repair before assigning it elsewhere.

What happens if my store declines to perform a repair?

If the dealer declines, CPS assigns a qualified service provider from its network to ensure the customer is still covered.

Do dealers get paid for warranty repairs they perform?

Yes, dealers who accept and complete CPS warranty repairs invoice CPS and are paid for covered work at industry standard rates.

Can I choose which repairs my service department handles?

Yes, dealers can accept or decline each claim on a case-by-case basis, depending on capacity and expertise.

Who handles claim administration and customer communication?

CPS manages claim intake, documentation, and customer communication, reducing the administrative workload for the dealer.

What types of repairs are eligible under CPS coverage?

CPS covers mechanical and electrical failures from normal use, such as motors, compressors, pumps, and control boards.

Does the first right of refusal apply to all CPS protection plans?

Yes, the first right of refusal applies to most CPS appliance protection programs, including True Extended and qualifying open-box or used appliance coverage.

Will my service department receive training on handling CPS warranty claims?

CPS provides onboarding and support to help dealers implement the claims process and train their teams as needed.

How does the CPS approach benefit my store compared to traditional warranty models?

CPS lets you capture both the warranty sale and the service revenue, strengthening your customer relationships and increasing overall profitability.

Can multi-location retailers use the first right of refusal model?

Yes, multi-location retailers can designate specific service departments for each store or region, allowing for flexible administration and reporting.

How does CPS support dealers who want to maximize their service department revenue?

CPS streamlines claim approval, manages customer communication, and pays dealers directly for completed repairs, making it easy to maximize service revenue.

Are there benchmarks for dealer-serviced claims under CPS?

CPS retailer data shows that stores servicing their own claims experience higher customer retention and increased service department profitability compared to outsourcing repairs.

What should a retailer do to get started with CPS warranty servicing?

Contact the CPS dealer team for onboarding, workflow setup, and staff training tailored to your service department’s needs.

How can appliance retailers get started with the CPS First Right of Refusal service model?

The CPS First Right of Refusal model is designed for appliance retailers who want to capture both warranty and service revenue by performing repairs in-house whenever possible. This approach gives dealers flexibility, strengthens customer relationships, and supports higher retention compared to traditional warranty programs. Stores of all sizes can benefit from this workflow, whether they have a single service technician or a full service department.

Retailers interested in implementing this service model can connect with the CPS team for onboarding support, workflow setup, and staff training. Consumer Priority Service helps ensure that the process is tailored to each retailer’s operational needs and provides ongoing support as the program grows.

Contact Method

Details

Email

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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