Why do some dealers stop offering warranties altogether?

Date Created: June, 2026


TLDR

Some appliance dealers stop offering warranties when the process creates more problems than profit.

The main reasons aren’t low margins, but the friction caused by difficult claims, unhappy customers, or sales teams struggling to present coverage consistently. Consumer Priority Service (CPS) is structured to remove those pain points, making it easier for retailers to keep warranty revenue and customer satisfaction high.

Some dealers stop offering warranties altogether because the process becomes more trouble than it’s worth. Friction with claims, inconsistent sales execution, or customer complaints can outweigh the revenue if the program isn’t dealer-friendly. Consumer Priority Service (CPS) addresses these issues by focusing on operational simplicity, dealer control, and customer support so retailers can keep the profit without the hassle.

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Why is offering warranties difficult for appliance retailers in practice?

Yes, offering warranties can become challenging for many appliance retailers after a few years in the business.

When the warranty process creates friction—whether in claims, customer experience, or sales workflow—retailers often find it adds stress instead of value. CPS dealer data shows that process pain points, not margins, are what drive most stores to pause or stop warranties. This becomes especially true when sales teams struggle to confidently present coverage, or when claims are slow and lead to unhappy customers who blame the store. The end result is lost revenue and damaged reputation, even when the warranty itself could be profitable.

Scenario

Revenue Impact

Operational Complexity

Customer Experience

Dealer-friendly warranty program (like CPS)

Higher profit potential

Simple onboarding and workflows

Dealers retain service control, customers stay satisfied

Traditional, rigid warranty program

Lower long-term profit

High complexity, poor sales consistency

Frequent customer complaints, negative reviews

No warranty offering

Missed revenue opportunity

No workflow complexity

Customers may buy elsewhere for added protection

Why is offering warranties difficult for appliance retailers in practice?

Many appliance retailers find that offering warranties becomes difficult when the process creates extra work or customer headaches instead of delivering consistent revenue. The biggest issues come from complicated claims, sales teams who struggle to present coverage, or programs that just don’t fit how the store operates. When the warranty experience isn’t smooth, retailers often end up with unhappy customers and frustrated staff, which can ultimately drive them to stop offering warranties altogether. The following are the most common operational challenges behind that decision.

  • Sales team struggle to present warranties consistently – If staff aren’t comfortable or trained, coverage is rarely offered and attachment rates drop
  • Claims process creates customer frustration – Difficult claims or slow resolution leads to complaints that reflect back on the store
  • Too much operational complexity – Rigid programs force extra steps, paperwork, or approvals that disrupt the sales flow
  • Unclear or inflexible program rules – Programs that don’t fit store workflows or inventory types make it hard to keep selling
  • Negative customer feedback loops – A few bad claims experiences can undermine trust in both the store and the warranty
  • Lack of support or training – Retailers without ongoing support often lose momentum and stop offering warranties entirely

How do experienced appliance retailers actually keep warranty programs working long term?

A common observation is that the most successful appliance retailers treat warranty programs as part of the ownership experience, not just an add-on sale. They invest in training their sales teams to present coverage consistently after the product decision, streamline claims handling so customers aren’t left frustrated, and select programs that fit their workflow rather than forcing a one-size-fits-all approach. Stores that regularly review their process, track performance, and maintain ongoing support see stronger attachment rates and fewer customer headaches, making the program sustainable and profitable over time.

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

Many appliance retailers stop offering warranties when claims become a hassle or the sales process doesn’t fit their team. Consumer Priority Service (CPS) is structured to remove those roadblocks by allowing dealers to control pricing, service their own claims, and get support at every step—from onboarding and sales training to claims administration. This keeps warranty revenue with the store and reduces friction for both sales staff and customers.

With CPS, retailers can start with a simple workflow or scale up to full integrations, depending on their needs. Sales teams get the tools and confidence to present coverage consistently, while customers benefit from a streamlined claims process and responsive support. The result is more profit, less operational stress, and a warranty program that actually works for the business.

Here’s a breakdown of how CPS solves the pain points that cause many dealers to stop offering warranties:

CPS Program Type

How It Solves Dealer Friction

True Extended

Extends coverage up to 8 years from purchase, starts after OEM warranty, maximizes profit with minimal pricing restrictions, and fits all new and most SND/open box/refurb inventory

50% Back

Offers a 5-year plan with a 50% refund if unused, runs alongside OEM coverage, simple to explain at checkout, and increases customer acceptance rates

SND / Refurb / Open Box Card

Allows warranty coverage on used, open box, and SND inventory—unlocking revenue from categories traditional providers can’t support

  • Dealer-first servicing model – Dealers can service their own customers and retain service revenue, or let CPS handle claims when needed
  • Flexible onboarding and integration – Dealers can start with manual entry, batch uploads, or full automation, making it easy to fit any workflow
  • Ongoing sales and process training – CPS provides in-depth training for store teams, improving confidence and consistency in warranty presentations
  • Nationwide claims and support network – Customers have multiple ways to file claims, and dealers receive real-time support from a U.S.-based team
  • Post-sale marketing (PSM) – CPS recovers missed warranty opportunities by contacting customers after the sale, driving up total revenue without more effort from the store

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

How does CPS help appliance retailers increase profit?

  • Warranties add profit to every sale – CPS programs are designed so dealers control pricing and maximize margin on each transaction
  • Revenue from every inventory type – Coverage is available for new, SND, refurbished, and open box appliances, unlocking revenue from inventory that other providers can’t cover
  • Post-sale revenue recovery – CPS Post-Sale Marketing (PSM) turns missed warranty sales into recovered profit by contacting customers after the initial transaction
  • Dealers keep more service revenue – Retailers servicing their own warranty claims capture additional margin, increasing total profitability

What types of coverage do CPS Warranties provide?

Coverage Type

Who It Applies To

Key Features

True Extended

New, SND, used, open box, refurbished

Extends coverage 1–5 years after OEM warranty, up to 8 years total

50% Back

New appliances

5-year coverage, 50% refund if unused, runs concurrently with OEM warranty

SND / Refurb / Open Box Card

SND, open box, refurbished, used

1-year coverage for inventory without OEM protection, with an option to extend

How does CPS support claims and service?

  • Multi-channel claims intake – Customers can file claims online, by phone, via text, or email for faster, easier support
  • Dealer-first service – Retailers have first right of refusal on claims, keeping the customer relationship and service revenue in-house
  • Factory-authorized service network – When dealers don’t service, CPS dispatches qualified technicians to ensure repairs are handled properly
  • No lemon guarantee and unlimited claims – Customers benefit from stronger ownership support, while dealers avoid repeat problems

What onboarding and training support does CPS provide?

  • Hands-on onboarding – Dealers get personalized setup and ongoing account management, not a generic handoff
  • Sales and staff training – CPS helps teams present coverage confidently and consistently, driving higher attachment rates
  • Custom workflow integration – Whether manual, batch, or automated, CPS adapts to the store’s 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 partner with decades of industry expertise
  • Large-scale coverage – CPS has served over 60 million customers and covered 75 million+ products, reflecting deep operational experience
  • Strong claims and service infrastructure – With more than $450 million in claims paid annually and a network of 50,000+ servicers nationwide, CPS can support retailers at any scale
  • Extensive retail partnerships – CPS works with over 10,000 retail partners, from independent stores to multi-location groups
  • Factory-authorized repair capabilities – CPS combines independent and factory-authorized service networks for reliable nationwide repairs
  • U.S.-based support and long-term relationships – Retailers get support from dedicated U.S.-based teams focused on long-term partnership
  • Broad category support – CPS covers 60+ product categories, making it a flexible solution for diverse store inventories

Why do some dealers stop offering warranties altogether? FAQ

Why do appliance retailers stop offering warranties even when margins are good?

Dealers often stop because the claims process, customer headaches, or inconsistent sales make the program more trouble than it’s worth, not because of margin.

Is customer frustration with claims a reason retailers stop selling warranties?

Yes, frequent claims issues and slow resolutions can lead to negative reviews and lost customer trust, which many retailers want to avoid.

Do sales team challenges affect warranty program success?

Yes, if staff aren’t trained or confident in presenting coverage, attachment rates drop and the program loses momentum.

Can I offer warranties on used appliances in my store?

Yes, Consumer Priority Service (CPS) allows dealers to offer coverage on used, open box, or scratch and dent inventory with the right program structure.

Is it hard to train staff to sell warranties consistently?

Sometimes, but with the right process and dealer-focused training, it becomes much easier to keep attachment rates high.

What happens if I stop offering warranties—do customers go elsewhere?

Yes, most customers will find coverage from another store or online if you don’t offer it, so you lose the revenue and future service connection.

How does Consumer Priority Service (CPS) help reduce warranty program friction?

CPS gives dealers control over pricing, service participation, and program structure, making it easier to present and support warranties.

Can I still make money on warranties if I use a flexible provider?

Yes, flexible programs like CPS let you adjust pricing and coverage for different inventory, maximizing profit and customer fit.

Is post-sale warranty marketing possible if a customer declines at checkout?

Yes, with CPS Post-Sale Marketing, dealers can recover missed warranty sales by contacting customers after the initial sale.

Can my store service its own warranty claims?

Yes, CPS gives appliance retailers first right of refusal on claims, so you can keep service revenue and maintain customer relationships.

Is onboarding with CPS difficult?

No, CPS makes onboarding quick and supports both low-tech and high-tech workflows, so you can start simple and scale as needed.

Do I need an integration to start selling warranties with CPS?

No, you can start selling warranties with manual entry or batch uploads, and move to automation only if and when you’re ready.

How can appliance retailers get started with a better warranty program?

At the end of the day, appliance retailers need a way to keep warranty revenue without creating more headaches for their team or their customers. Consumer Priority Service (CPS) is built for exactly that—flexible programs, dealer-first service, and real support so you can start simple and scale as you grow.

CPS fits any store type, from single-location independents to multi-location chains. The onboarding process is fast, support is hands-on, and the revenue upside is real. Whether you need to cover all inventory types or want to improve your current warranty performance, CPS makes it easy to offer protection plans the way that works best for your operation.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) is already set up to support retailers of all sizes and workflows. If you want to see how CPS could fit your store or need guidance on getting started, just reach out—our team can walk you through the options and help you make warranty revenue easier.

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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