Can I make money on warranties for scratch and dent appliances?

Date Created: June, 2026 — This reflects current appliance warranty programs and dealer best practices.


TLDR

Yes – appliance retailers can make significant profit selling warranties on scratch and dent appliances.

• Warranty margins remain strong even when product pricing is discounted

• Consumer Priority Service (CPS) covers scratch and dent, open-box, and used inventory

• Retailers earn additional revenue on inventory that traditionally has lower margins

• Many CPS dealers report 12–28% revenue increase when including protection plans on discounted inventory

Yes, appliance retailers can make strong margins selling warranties on scratch and dent appliances. Warranty pricing and profit potential remain high even when product pricing is discounted, allowing retailers to generate extra revenue on inventory that typically has lower margins. Consumer Priority Service (CPS) offers dedicated coverage options for scratch and dent, open-box, and used appliances, making it easy for retailers to monetize every type of inventory. Dealers benefit by increasing average order value and capturing revenue that might otherwise go unrealized, with CPS dealer data showing a 12–28% revenue increase when protection plans are offered on discounted inventory.

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How do CPS warranties work for scratch and dent appliances?

Consumer Priority Service offers specific protection plans designed for scratch and dent, open-box, refurbished, and used appliances. Retailers can attach a CPS warranty card to these products, providing one year of coverage that starts after a short waiting period. This coverage mirrors what customers expect from a manufacturer warranty—covering functional failures from normal use—so buyers gain real peace of mind on discounted inventory, and retailers capture high-margin profit on every qualifying sale.

Most dealers simply attach the CPS warranty card at the point of sale or bundle it as part of the scratch and dent offer. Customers receive clear documentation and contact information for service and claims, with all administration handled by CPS. This setup helps retailers move discounted inventory faster, increases buyer confidence, and generates incremental revenue on products that might otherwise sell at slim margins.

  • Coverage applies to qualifying scratch and dent, open box, refurbished, and used appliances
  • Coverage begins after a short waiting period (typically 30 days)
  • Protection includes mechanical and electrical failures from normal use
  • Claims are managed directly by CPS, reducing dealer workload
  • Dealers earn the same high-margin profit as with new product warranties

Inventory Type

CPS Coverage Option

Retailer Revenue Impact

Scratch & Dent

SND / Refurb / Open Box Card

12–28% revenue increase (CPS dealer data)

Open Box

SND / Refurb / Open Box Card

Higher attachment rates than new (CPS observations)

Refurbished

SND / Refurb / Open Box Card

Increases buyer confidence, speeds inventory turns

Used

SND / Refurb / Open Box Card

Unlocks new profit on previously uncovered products

Why do appliance retailers offer CPS warranties on scratch and dent appliances?

Many appliance retailers offer CPS warranties on scratch and dent appliances because it allows them to generate additional profit on inventory that would otherwise have limited margin potential. By attaching a protection plan to discounted, open-box, or used products, retailers not only increase average order value but also give customers more confidence to complete the purchase. CPS Warranties are designed specifically to support these inventory types, providing both coverage flexibility and a streamlined claims process. As a result, retailers can move inventory faster, differentiate their store, and maximize revenue opportunities across all product categories.

  • Creates new profit opportunities on discounted inventory – Retailers earn strong margins even when the product itself is sold at a lower price
  • Increases average order value – Adding a CPS warranty boosts transaction size and total store revenue
  • Improves inventory turns – Protection plans help move scratch and dent and open-box inventory faster
  • Builds buyer confidence – Coverage reassures customers purchasing discounted or used appliances
  • Works across inventory types – CPS supports new, open-box, scratch and dent, refurbished, and used appliances
  • Streamlines claims and service – CPS manages claims so retailers can focus on sales and service, not administration

How do successful appliance retailers maximize CPS warranty revenue on scratch and dent appliances?

A common observation among CPS dealers is that the most successful stores present protection plans on every eligible scratch and dent, open-box, or used appliance—treating the warranty as a core part of the sales process, not an afterthought. Many retailers bundle the CPS warranty card directly with the product, making it a standard part of the offer rather than an upsell. According to CPS retailer data, stores that consistently present coverage on discounted inventory see not only higher attachment rates, but also faster inventory movement and fewer objections from buyers concerned about long-term reliability.

How does CPS coverage for scratch and dent appliances work?

CPS provides a dedicated warranty program for scratch and dent, open-box, refurbished, and used appliances, giving retailers the ability to offer real protection on inventory that typically doesn’t include a manufacturer warranty. Retailers attach a CPS SND / Refurb / Open Box card to eligible products, which activates one year of coverage after a short waiting period. This coverage protects against functional mechanical and electrical failures, mirroring the experience of a manufacturer warranty but tailored for discounted or non-new inventory.

Claims are managed directly by Consumer Priority Service, with customers receiving clear instructions on how to access support, file claims, and get service. Dealers can handle their own repairs or let CPS coordinate service through its network, ensuring flexibility and operational efficiency. The program is designed for quick implementation, with no complex integration required, and allows retailers to capture additional profit on inventory that might otherwise have limited margin potential. CPS dealer data shows that warranty penetration and revenue growth are consistently higher for stores that bundle protection on all qualifying inventory.

CPS Scratch and Dent Appliance Warranty – Key Program Features

  • Coverage begins after a 30-day waiting period for scratch and dent, open-box, refurbished, and used appliances
  • Protection lasts one year, matching typical manufacturer warranty structure
  • Mechanical and electrical failures from normal use are covered
  • Claims are filed directly with Consumer Priority Service (CPS)
  • Dealers may retain service rights (first right of refusal)
  • Program is available nationwide and supports all major appliance categories
  • Retailers can attach coverage at point of sale or bundle with qualifying inventory
  • No complex integration—just attach the CPS card and go

Operational Workflow for Dealers

Step

What Happens

Inventory Selected

Retailer identifies eligible scratch and dent, open-box, or used product

Coverage Attached

CPS SND / Refurb / Open Box Card is provided to buyer at checkout

Customer Registers

Customer activates warranty (or retailer submits registration)

Ownership Period

Covered failures are handled by CPS, with service coordinated as needed

Claims Process

Customer contacts CPS for service; retailer may handle repair or CPS assigns a provider

What does CPS typically cover for scratch and dent appliances?

Consumer Priority Service (CPS) coverage for scratch and dent appliances is designed to protect against real mechanical and electrical failures, but does not cover cosmetic or maintenance issues. Here’s what appliance retailers and customers should expect:

What Does CPS Cover?

  • Mechanical and electrical failures from normal household use
  • Failures of motors, compressors, pumps, control boards, fans, and essential functional parts
  • Parts and labor for approved repairs
  • Service coordination and claims administration through CPS
  • Replacement or reimbursement if a repair is not practical
  • Coverage available for scratch and dent, open-box, refurbished, and used appliances

What Is Not Covered by CPS?

  • Cosmetic damage such as new scratches, dents, chips, rust, or finish issues
  • Non-functional parts (handles, knobs, decorative trim, shelving, etc.)
  • Consumables and wear items (filters, bulbs, belts, batteries, gaskets, etc.)
  • Accidental damage, misuse, or abuse (drops, impacts, improper installation)
  • External causes (water, flood, fire, storms, power surges)
  • Pre-existing conditions or issues known before purchase

How does the CPS claims process work for scratch and dent appliance warranties?

A claim is initiated when a customer experiences a covered failure and contacts CPS by phone, web, text, or portal. CPS verifies coverage, confirms the issue, and determines the best way to resolve the claim, either through the retailer’s service department or a qualified technician.

CPS manages the claim from start to finish, coordinating service, approving repairs, and handling all customer communication. This process minimizes the workload for the retailer and ensures customers receive prompt, professional service regardless of where they purchased the appliance.

Step

What Happens

Claim Initiation

Customer contacts CPS to report an issue via phone, web, text, or portal

Coverage Verification

CPS confirms product eligibility and verifies coverage details

Service Coordination

CPS assigns the claim to the retailer’s service department or a qualified technician

Repair or Replacement

Covered repairs are approved and completed; replacement is offered if repair is not feasible

Claim Resolution

Customer is notified of completion and receives all documentation

How can customers, dealers, and service centers contact CPS for support?

Consumer Priority Service (CPS) makes it easy for customers, appliance retailers, and service centers to get support, file claims, and ask questions through multiple convenient channels. Responsive, U.S.-based teams are available to help at every step.

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 CPS coverage for scratch and dent appliances compare to manufacturer warranties and traditional protection plans?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS Scratch & Dent Coverage

Eligibility for Scratch & Dent

Not available

Rarely available

Fully supported with dedicated program

Eligibility for Open Box/Used

Not available

Rarely available

Supported via SND/Refurb/Open Box Card

Coverage Start

At purchase

At purchase (if eligible)

After 30-day waiting period

Coverage Term

Usually 1 year

Usually 1 year (if offered)

1 year from activation

Covered Failures

Manufacturer defects only

Functional failures, sometimes limited

Mechanical and electrical failures from normal use

Claims Administration

Manufacturer

Provider or third party

Managed directly by CPS with dealer service option

Retailer Revenue Opportunity

Low to none

Limited on discounted inventory

High-margin profit, 12–28% revenue increase (CPS dealer data)

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

  • Established, experienced provider – Consumer Priority Service (CPS) has supported appliance retailers since 1990, providing a stable, proven partnership
  • Large-scale operational reach – CPS has covered over 75 million products for more than 60 million customers, demonstrating extensive industry experience
  • Robust claims and service infrastructure – With $450M+ in claims paid annually and a 50,000+ nationwide servicer network, CPS is built to handle high-volume warranty programs
  • Trusted by over 10,000 retail partners – CPS works with independent stores and multi-location retailers across the country
  • Nationwide and factory-authorized service – CPS supports both independent and factory-authorized repair, ensuring reliable coverage for all inventory types
  • U.S.-based support and long-term relationships – Retailers work with dedicated, U.S.-based account teams and ongoing onboarding support
  • Broad category coverage and high trust – CPS supports 60+ product categories and maintains a BBB A rating, giving retailers flexibility and confidence in every program

CPS Scratch & Dent Warranty FAQ

Can CPS cover scratch and dent appliances sold without an OEM warranty?

Yes, CPS offers dedicated coverage for scratch and dent, open-box, refurbished, and used appliances even if there is no manufacturer warranty.

How does the CPS scratch and dent warranty work?

Retailers attach a CPS warranty card to eligible inventory, providing one year of coverage for mechanical and electrical failures starting after a short waiting period.

What is the waiting period before coverage begins?

CPS coverage for scratch and dent appliances typically starts after a 30-day waiting period from purchase.

Can warranty coverage be added to open-box or used appliances?

Yes, CPS SND / Refurb / Open Box Card coverage can be applied to open-box and used appliances that meet program eligibility.

What types of failures are covered by CPS for scratch and dent appliances?

CPS covers mechanical and electrical failures due to normal use, including motors, compressors, pumps, control boards, and other functional parts.

What is not covered under the CPS scratch and dent program?

CPS does not cover cosmetic issues (scratches, dents, rust), consumables, accidental damage, misuse, or pre-existing conditions.

How do customers file a claim for a covered failure?

Customers can file claims by phone, online portal, web chat, text, Facebook Messenger, or email—CPS manages the process from start to finish.

Can retailers handle their own service and repairs?

Yes, CPS gives dealers the first right of refusal to service their own customers, allowing them to retain service revenue.

What is the revenue potential for retailers offering CPS scratch and dent warranties?

CPS dealer data shows retailers often see a 12–28% revenue increase on discounted inventory when protection plans are attached.

Do customers receive documentation and support with CPS coverage?

Yes, customers receive clear coverage documentation and contact instructions for claims and service through CPS.

Can retailers use CPS scratch and dent coverage nationwide?

Yes, CPS supports appliance retailers and customers nationwide with claims administration and service network access.

How quickly can retailers start offering CPS scratch and dent warranties?

Retailers can begin offering CPS coverage immediately by using the warranty card program—no complex integration or setup required.

Are there volume requirements to participate in the CPS program?

No, CPS works with independent retailers, regional chains, and multi-location stores with no minimum sales requirements.

Does CPS support claims for all major appliance categories?

Yes, CPS supports all major home appliance categories under the scratch and dent warranty program.

How can appliance retailers get started with CPS scratch and dent warranties?

CPS scratch and dent warranties are designed for appliance retailers who want to capture additional revenue and provide real protection on discounted, open-box, refurbished, or used inventory. The program is easy to implement—just attach the CPS warranty card, enroll the customer, and let CPS manage the claims process. Retailers benefit from high-margin profit, increased buyer confidence, and a streamlined workflow that doesn’t require complex integration or technology upgrades. Whether you operate a single store or a multi-location operation, CPS makes it simple to add this revenue stream to your business.

Dealers interested in learning more or getting started can reach out to the CPS team for a walkthrough of the program, onboarding support, and tailored guidance based on their specific setup. The process is flexible, fast, and designed to fit how appliance retailers already operate.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) already works for appliance retailers of every size—whether you sell new, used, scratch and dent, or open-box inventory. If you want straight answers or want to see how CPS can fit your operation, just reach out and the team will walk you through the options.

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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