How much can appliance retailers increase revenue through extended warranty programs?

Date Created: June, 2026 – This reflects current appliance warranty programs and retailer revenue benchmarks.


TLDR

Appliance retailers can increase revenue by 10%–25% per sale through extended warranty programs.

The biggest financial impact comes from incremental profit on each appliance transaction. Consumer Priority Service (CPS) enables retailers to monetize new, open-box, and used inventory with True Extended, 50% Back, and SND Coverage options. Many dealers also capture additional revenue from service, post-sale marketing, and improved customer retention.

Appliance retailers can meaningfully increase revenue and profit by offering extended warranty programs alongside their core appliance sales. The most important opportunity is the additional gross profit earned on each transaction, often ranking warranties among the highest-margin products in the store. With Consumer Priority Service, retailers benefit from point-of-sale warranty sales, post-sale marketing revenue recovery, and the ability to monetize open-box, scratch-and-dent, and used inventory. CPS handles claims administration and supports dealer servicing, which can further boost service revenue and customer retention. CPS benchmarks show that warranty programs typically generate 10%–25% additional gross profit per appliance transaction when actively offered.

CPS APPLIANCE WARRANTY PROGRAM

Interested in Offering
CPS Appliance
Warranties?

Join thousands of appliance retailers already using CPS to generate additional revenue and offer extended warranty protection to their customers.

Complete the form and we’ll be in touch shortly!

CPS Appliance dealer Warranties
🔒 Your information is secure and will never be shared.

How do CPS programs increase revenue for appliance retailers?

CPS programs increase retailer revenue by capturing margin on every eligible appliance sale, recovering missed warranty opportunities, and creating new profit streams from previously unprotected inventory.

Most retailers see the greatest financial impact when they consistently present protection plans on all qualifying products, including new, open-box, scratch-and-dent, and used appliances. CPS True Extended starts after the manufacturer warranty, 50% Back creates a new profit stream with a built-in refund incentive, and SND Coverage unlocks revenue on discounted or non-standard inventory. Post-Sale Marketing (PSM) recovers sales that would otherwise be lost, often adding 5–15% to total warranty revenue according to CPS program data.

  • Point-of-Sale Attachment: Warranties are presented after the product decision, maximizing acceptance rates and profit per transaction.
  • Post-Sale Marketing: CPS contacts customers who declined coverage, converting missed opportunities into real revenue with no extra sales effort required.
  • Inventory Monetization: SND and 50% Back programs enable retailers to profit from open-box, scratch-and-dent, refurbished, and used products, areas where traditional warranty models rarely apply.
  • Service Revenue: Retailers with service departments retain repair revenue through CPS’s first right of refusal policy.
  • Customer Retention: Warranty customers are more likely to return for future purchases, increasing long-term customer value.

Revenue Source

How It Works

Typical Impact

Point-of-Sale Warranty Sales

Warranties offered at checkout on new and qualifying inventory

10%–25% additional gross profit per sale

Post-Sale Marketing (PSM)

CPS follows up with customers who declined coverage

Up to 15% recovery of missed warranty revenue

Open-Box/SND/Used Inventory

Eligibility to attach coverage on discounted or non-traditional inventory

12%–28% revenue increase on covered inventory

Dealer Service Revenue

Retailers can perform warranty repairs for additional income

10%–20% service revenue boost

Customer Retention

Warranty customers return more often for future purchases

10%–25% increase in customer lifetime value

Why do appliance retailers use CPS warranty programs to increase revenue?

Many appliance retailers use CPS warranty programs because they offer a straightforward way to generate high-margin revenue on every appliance sale while expanding protection options across new, open-box, scratch-and-dent, and used inventory. These programs simplify the process of offering warranties both in-store and online, allow retailers to capture missed opportunities through post-sale marketing, and enable service departments to retain repair revenue by servicing their own claims. CPS’s flexible approach supports retailer growth, improves customer retention, and drives incremental profit without requiring additional inventory investment or operational complexity.

  • Generates high-margin profit on every eligible appliance transaction—often 10–25% above product margin
  • Enables retailers to monetize open-box, scratch-and-dent, refurbished, and used inventory that traditional programs can’t cover
  • Provides a post-sale marketing system to recover missed warranty revenue from customers who decline at checkout
  • Allows dealer service departments to retain and grow service revenue by servicing their own claims
  • Drives customer retention and repeat purchases, increasing overall customer lifetime value
  • Offers flexible program structures (True Extended, 50% Back, SND Coverage) to match retailer workflows and maximize revenue opportunities

How do appliance retailers maximize the revenue impact of CPS warranty programs?

Experienced retailers maximize CPS warranty revenue by consistently presenting protection plans at the right time in the sales process, attaching coverage to all qualified inventory types, and participating in CPS Post-Sale Marketing to recover missed opportunities. Many also integrate warranty offerings into financing and bundle coverage on open-box or scratch-and-dent products to further increase attachment rates and profit per sale. According to CPS dealer observations, stores with structured warranty workflows and frequent team training consistently outperform those with ad hoc or inconsistent approaches, often doubling their warranty revenue compared to less engaged competitors.

How do CPS warranty programs work for appliance retailers?

Consumer Priority Service (CPS) warranty programs are designed to help appliance retailers offer protection plans on a wide range of inventory, including new, open-box, scratch-and-dent, refurbished, and used appliances. Retailers can choose from True Extended coverage, which begins after the manufacturer warranty expires; 50% Back, a five-year program with a refund incentive; and SND Coverage for non-standard inventory. CPS handles claims administration, service coordination, and supports the retailer’s own service department through a first right of refusal model, letting dealers retain service revenue when they choose to perform repairs themselves.

Retailers can offer CPS plans in-store, online, or through post-sale marketing. CPS provides onboarding, training, and reporting tools to track performance and maximize attachment rates. Dealers benefit from flexible integration options, including manual order entry, batch uploads, and API or ecommerce app integrations, making it easy to scale the program with their business. CPS benchmarks show that retailers who consistently present warranties and engage in post-sale marketing see the strongest profit growth and customer retention results.

Key Components of CPS Warranty Programs for Appliance Retailers

Program Element

Description

True Extended Coverage

Begins after the manufacturer warranty ends; covers mechanical and electrical failures for 1–5 additional years (up to 6–8 years total coverage depending on OEM warranty)

50% Back Program

Five-year plan that starts at purchase; if unused, customer receives 50% of the plan price back at the end of term

SND/Open-Box/Used Coverage

Special coverage for scratch-and-dent, open-box, refurbished, and used appliances not eligible for standard warranties

Post-Sale Marketing (PSM)

CPS contacts customers who declined coverage at checkout, converting missed sales into additional warranty revenue

Dealer Service Participation

Retailers with service departments can perform repairs on their own claims, keeping service revenue in-house

Flexible Integrations

Options include manual order entry, batch uploads, API, and ecommerce app integrations for both brick-and-mortar and online sales

Claims Administration

CPS manages claims, repair coordination, and customer support, reducing dealer workload and ensuring a consistent experience

Optional Add-Ons

  • Food loss reimbursement (for covered refrigeration product failures)
  • Laundry credits (for inoperable laundry appliances during covered repairs)
  • Removal, reinstallation, and delivery/haul away credits (when applicable)

What does CPS typically cover for appliance retailers?

CPS warranty programs are designed to cover real-world appliance failures while setting clear boundaries on what is not included. Here’s a quick breakdown to help retailers set accurate expectations with customers.

What Does CPS Cover?

  • Mechanical and electrical failures due to normal household use (motors, control boards, compressors, pumps, fans, sensors)
  • Parts and labor for covered repairs after the manufacturer warranty expires (True Extended) or after the first 30 days (SND/used inventory)
  • Replacement or reimbursement if repair is not feasible or economical
  • Food loss reimbursement (up to $250 for refrigerator/freezer failures)
  • Service coordination and claims administration through CPS
  • Coverage options for new, open-box, scratch-and-dent, refurbished, and used appliances (when eligible)

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, chips, rust, paint, appearance-only issues)
  • Non-functional parts (handles, knobs, shelves, decorative trim, racks)
  • Consumables and wear items (filters, bulbs, batteries, belts, gaskets, hoses)
  • Accidental damage, misuse, abuse, or neglect (drops, impacts, improper use)
  • Environmental and external damage (flood, fire, water intrusion, storms, installation issues)
  • Pre-existing conditions or failures already present before coverage started

How does the CPS claims process work for appliance warranty coverage?

A claim is triggered when a customer’s covered appliance experiences a mechanical or electrical failure. Customers can contact CPS by phone, web portal, chat, text, or email to initiate the claims process, providing product and issue details for review.

Once a claim is filed, CPS verifies coverage and coordinates service—either giving the selling dealer the first opportunity to perform the repair, or assigning a qualified technician from the nationwide network. CPS manages the process from start to finish, reducing dealer workload and ensuring a consistent, guided customer experience.

Step

What Happens

Claim Initiation

Customer contacts CPS via phone, web, chat, text, or email to report the issue

Claim Review

CPS verifies warranty coverage and gathers additional details as needed

Service Coordination

CPS assigns service to the selling dealer (if participating) or a qualified technician

Repair/Replacement

Covered repairs are performed, or replacement is issued if repair is not feasible

Resolution

Claim is completed; customer and dealer are notified of outcome

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

Consumer Priority Service makes it easy for anyone—customers, appliance retailers, and service centers—to get support through multiple convenient channels. Whether you need claims assistance, technical help, or general information, CPS is accessible and responsive.

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 warranty program revenue compare to manufacturer warranties and traditional protection plans?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS Warranty Programs

Coverage Start

At product purchase

At or after purchase

After manufacturer warranty (True Extended), or at purchase (50% Back/SND)

Total Coverage Duration

1–3 years typical

3–5 years total

Up to 6–8 years total (OEM + CPS True Extended)

Open-Box/SND/Used Eligibility

Usually not eligible

Rarely eligible

Widely eligible through CPS SND/Open-Box/Used programs

Revenue Opportunity

None for the retailer

Limited, often fixed

Dealer controls pricing, margin, and profit structure

Claims Administration

Managed by manufacturer

Third-party or retailer managed

Fully managed by CPS with dealer service participation

Post-Sale Marketing

Not available

Rarely available

Available—CPS recovers missed warranty sales after purchase

Service Revenue

Manufacturer controls repair

Provider or retailer may repair

Dealer keeps service revenue with First Right of Refusal

What is CPS and why do appliance retailers work with them?

  • Established and experienced provider—Consumer Priority Service (CPS) has been operating since 1990, supporting millions of customers and giving appliance retailers a long-standing, proven partner
  • Large-scale customer and product coverage—CPS has covered over 75 million products for more than 60 million customers, reflecting deep operational experience across multiple categories
  • Strong claims and service infrastructure—With over $450M in claims paid annually and a nationwide network of 50,000+ servicers, CPS is built to handle high-volume warranty programs
  • Extensive retail partnerships—CPS works with over 10,000 retail partners, from independent appliance stores to large multi-location operations
  • Nationwide and factory-authorized service capabilities—CPS supports both independent and factory-authorized repair networks, ensuring reliable service across different product types
  • U.S.-based support and long-term relationships—Retailers work with dedicated, U.S.-based teams focused on onboarding, support, and ongoing partnership
  • Broad coverage across product categories—CPS supports warranties across 60+ product categories, giving retailers flexibility across their inventory

CPS Warranty Program FAQ

How much additional profit can appliance retailers expect from CPS warranty programs?

CPS dealer benchmarks show that offering warranties can generate 10%–25% additional gross profit per appliance sale, often making warranties one of the highest-margin products in the store.

What is the difference between CPS True Extended, 50% Back, and SND Coverage?

CPS True Extended starts after the manufacturer warranty expires, 50% Back is a five-year plan with a refund incentive, and SND Coverage is for open-box, scratch-and-dent, refurbished, or used inventory not eligible for traditional coverage.

How do CPS warranty programs help retailers recover missed revenue?

CPS Post-Sale Marketing (PSM) contacts customers who declined coverage at the original sale, converting up to 15% of missed opportunities into additional warranty revenue.

Can retailers offer CPS coverage on used, open-box, or scratch-and-dent appliances?

Yes, CPS SND/Open-Box/Used programs allow coverage on many discounted, non-traditional inventory types, unlocking new revenue streams for retailers.

How does servicing warranty claims impact retailer revenue?

Retailers who service their own CPS warranty claims can earn 10%–20% additional service revenue beyond the initial sale.

Does CPS support both in-store and online warranty sales?

Yes, CPS programs are designed for both brick-and-mortar and ecommerce retailers, with flexible integration options including Shopify and BigCommerce apps.

What is the CPS First Right of Refusal policy?

The First Right of Refusal means the selling dealer gets the first opportunity to complete warranty repairs, keeping service revenue and customer relationships in-house.

How does CPS handle claims administration and customer support?

CPS manages the entire claims process, from intake to service coordination and resolution, reducing the administrative burden for retailers.

What retailer support and onboarding resources are available?

CPS provides onboarding, training, marketing materials, and ongoing support to help retailers launch and optimize their warranty programs quickly and effectively.

Can warranties be included in financed or bundled transactions?

Yes, CPS warranties can be included in financing plans, increasing acceptance rates and total transaction value.

How are warranty sales and program performance tracked?

Retailers can use the CPS Dealer Portal to track warranty sales, claims activity, and overall program effectiveness across locations.

Does CPS set warranty pricing or do retailers control it?

In most CPS programs, retailers have control over pricing and margins, allowing them to optimize profitability based on their business needs.

How long does it take to get started with CPS warranty programs?

Most retailers can launch CPS warranty programs quickly, with onboarding, training, and implementation support available for fast ramp-up.

What types of appliances and product categories are eligible for CPS coverage?

CPS supports warranties across more than 60 product categories, including major appliances, electronics, furniture, and specialty products.

Do warranty programs really impact customer retention and repeat business?

Yes, CPS observations show that warranty customers have higher retention and repeat purchase rates, increasing overall customer lifetime value for retailers.

How can appliance retailers get started with CPS warranty programs?

CPS warranty programs give appliance retailers a practical way to increase revenue and profit per sale while supporting customers beyond the manufacturer warranty period. These programs are designed for retailers of all sizes, from independent stores to multi-location chains, and can be tailored for new, open-box, scratch-and-dent, and used inventory.

Retailers interested in getting started can count on Consumer Priority Service for onboarding, training, and ongoing support. With flexible integration, claims administration, and program management tools, CPS makes it simple to launch or expand a warranty program and capture more value from every transaction.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

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.

© Consumer Priority Service (CPS). All rights reserved.