What percentage of appliance warranty replacements result in a new sale for the original dealer?

Date Created: June, 2026


TLDR

A meaningful percentage of appliance warranty replacements result in a new sale through the original dealer.

Most warranty replacements handled by CPS—especially for appliances outside the manufacturer warranty—are routed back to the original selling dealer, creating a direct opportunity for a new sale. This process helps maintain customer loyalty and keeps replacement revenue with the retailer. Consumer Priority Service (CPS) programs, including True Extended and 50% Back, are structured to maximize the likelihood that warranty replacements turn into additional business for the original dealer.

A significant percentage of appliance warranty replacements handled by Consumer Priority Service (CPS) lead to a new sale for the original dealer, especially when the replacement process is routed through that retailer. CPS programs are intentionally designed so that replacement events—including those under True Extended, 50% Back, and SND Coverage—direct customers back to the original store, reinforcing loyalty and long-term revenue opportunities. This approach ensures that when an appliance is deemed unrepairable under coverage, the selling dealer is given the chance to fulfill the replacement, rather than losing the transaction to another retailer. According to CPS service experience, this model not only increases the likelihood of repeat sales but also supports a stronger relationship between the dealer and the customer over the full product ownership cycle.

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 often do CPS warranty replacements generate a new sale for the original dealer?

CPS warranty replacements frequently result in a new sale for the original dealer—especially when the retailer is actively involved in the claims process and replacement fulfillment.

Whenever a covered appliance is beyond repair, Consumer Priority Service follows a process that routes the replacement transaction through the selling dealer. This keeps the customer connected to the original store and creates an opportunity for dealers to complete another sale, often with upgraded or additional product options. CPS dealer observations show that replacement events handled this way not only drive incremental revenue but also strengthen long-term customer relationships. Dealers with strong service involvement and post-sale follow-up are more likely to convert warranty replacements into repeat business.

Replacement Scenario

Dealer Involvement

Result

Appliance is unrepairable, original dealer participates

Dealer coordinates replacement with CPS

High likelihood of new sale with the original dealer

Dealer opts out, CPS assigns third-party

Dealer not involved in replacement

Lower chance of new sale for original dealer

Post-warranty replacement via True Extended or 50% Back

Dealer receives replacement opportunity

Dealer retains revenue and customer relationship

Why do appliance retailers benefit when warranty replacements are routed through the original dealer?

Many appliance retailers benefit from warranty replacements that route customers back to the original store because it transforms service events into new sales opportunities. By handling the replacement process through the original dealer, Consumer Priority Service helps retailers keep the customer relationship active, increase the likelihood of repeat purchases, and turn a potential loss into an additional revenue event. This approach supports long-term loyalty, reinforces the dealer’s role as the go-to resource for appliance needs, and often leads to customers upgrading or adding products during the replacement process.

  • Creates new sales opportunities – Warranty replacements handled through the original dealer often result in immediate repurchase or product upgrades
  • Strengthens customer loyalty – Customers are more likely to buy again from the retailer who supports them during a warranty event
  • Retains replacement revenue – The dealer keeps the replacement transaction, rather than losing it to a third-party or competitor
  • Supports long-term customer relationships – Replacement events deepen the customer’s connection to the dealer for future appliance needs
  • Drives higher customer satisfaction – Customers appreciate a seamless, dealer-led replacement experience
  • Increases overall revenue per customer – Repeat sales and upgrades during the replacement process contribute to long-term growth

How do appliance retailers maximize new sales from CPS warranty replacements?

Many appliance retailers maximize new sale opportunities from CPS warranty replacements by actively engaging in the claims process and offering personalized replacement options when a customer’s appliance is deemed unrepairable. Dealers who treat replacement events as a chance to reconnect with their customers—exploring upgrades, add-ons, or bundled offers—see higher rates of repeat sales and enhanced loyalty. According to CPS service experience, stores that maintain strong relationships during the replacement process often generate additional profit and strengthen their reputation for long-term support.

How does the CPS warranty replacement process work for appliance retailers?

When a covered appliance cannot be repaired under a Consumer Priority Service (CPS) plan, the replacement process is designed to route the transaction through the original selling dealer. CPS coordinates with the retailer, giving them the first opportunity to provide a replacement, often leading to a direct sale or product upgrade. This workflow is built into all major CPS programs, including True Extended, 50% Back, and SND Coverage, ensuring the dealer remains at the center of the customer relationship.

Operationally, CPS manages the claims review, confirms replacement eligibility, and facilitates the handoff to the retailer for fulfillment. Dealers benefit from having control over the replacement transaction, while customers enjoy a smoother, more familiar replacement experience. This approach not only reinforces customer loyalty but also drives additional revenue for the retailer, as many customers take the opportunity to upgrade or bundle products during the replacement process. CPS dealer data shows that this model increases post-claim sales and supports long-term business growth.

Key Components of the CPS Warranty Replacement Process

  • Dealer First Right of Refusal – The original selling dealer is given the first option to handle replacements, ensuring revenue stays with the retailer.
  • Claim Administration by CPS – CPS manages claim intake, eligibility review, and customer communication, reducing administrative burden on the dealer.
  • Replacement Coordination – If the appliance can’t be repaired, CPS works with the retailer to fulfill a replacement, often resulting in a new sale.
  • Program Coverage – Applies to True Extended, 50% Back, and SND/Open Box/Used appliance plans, increasing replacement opportunities across inventory types.
  • Customer Engagement – Dealers can use replacement events to offer upgrades, add-ons, or bundled products, turning warranty service into a repeat sale opportunity.
  • Revenue and Loyalty Impact – According to CPS dealer observations, this process increases the percentage of warranty replacements that convert to new sales and strengthens customer loyalty over time.

What does CPS actually cover—and what isn’t covered—when it comes to appliance warranty replacements?

Understanding the boundaries of CPS coverage helps retailers set clear expectations and maximize the value of warranty programs for their customers.

What Does CPS Cover?

  • Mechanical and electrical failures after the manufacturer warranty expires
  • Parts and labor for covered appliance repairs
  • Replacement of appliances that cannot be economically repaired
  • Coverage for new, open-box, scratch-and-dent, and qualifying used appliances under specific programs
  • Coordination of service and replacement through the original selling dealer
  • Food loss (up to $250) and laundry credit (up to $50) in applicable plans

What Is Not Covered by CPS?

  • Cosmetic damage (scratches, dents, rust, chipped finishes, appearance-only issues)
  • Non-functional parts (handles, knobs, shelves, decorative trim)
  • Consumables and wear items (filters, bulbs, batteries, belts, gaskets)
  • Accidental damage, misuse, abuse, or neglect
  • Environmental events (flood, fire, storm, water intrusion)
  • Installation errors, utility issues, or external infrastructure problems
  • Failures occurring during the original manufacturer warranty period

How does the Consumer Priority Service (CPS) claims process work for warranty replacements?

A claim is triggered when a covered appliance fails or becomes unrepairable, and the customer contacts CPS via phone, web, portal, text, or chat to start the process. CPS handles claim intake, confirms eligibility, and coordinates all next steps, keeping things straightforward for both the customer and the dealer.

CPS manages the entire replacement process—from service assignment to repair review and, if required, replacement fulfillment—often routing the replacement sale back to the original dealer. This approach minimizes administrative work for the retailer and ensures the customer gets prompt support and a clear path to resolution.

Step

What Happens

Claim Initiation

Customer contacts CPS via phone, web, portal, text, or chat to report a failure

Coverage Review

CPS verifies coverage eligibility and confirms product details

Service Coordination

CPS assigns a technician or coordinates service through the dealer or network

Repair Attempt

Product is assessed and repaired if possible

Replacement Authorization

If unrepairable, CPS approves replacement and routes transaction through the original dealer

Resolution/Completion

Customer receives replacement or settlement, and the claim is closed

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

Consumer Priority Service makes it easy for customers, dealers, and service centers to get help, file claims, or ask questions using multiple support channels.

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 replacement compare to manufacturer and traditional protection plan models?

Feature

Manufacturer Warranty

Traditional Protection Plan

CPS Programs

Replacement Sale Routing

Usually handled by manufacturer or third-party

Often routed to a third-party or assigned servicer

Routed through original dealer for new sale opportunity

Dealer Revenue Opportunity

Dealer rarely involved in replacement sale

Dealer may be excluded from replacement transaction

Dealer retains replacement revenue and customer relationship

Upgrade Opportunities

Typically not offered

Limited, depends on plan administrator

Dealer can offer upgrades or bundles during replacement

Customer Loyalty Impact

Replacement often weakens original dealer relationship

Customer may be directed away from dealer

Dealer remains primary point of contact for replacement

Program Applicability

Applies only during OEM warranty period

Varies by plan, may exclude SND/used/open-box

Available for new, SND, open-box, and qualifying used appliances

Claims Administration

Handled by manufacturer

Handled by plan administrator, dealer rarely involved

CPS manages claims but includes dealer in replacement workflow

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

  • Established and experienced provider – Consumer Priority Service (CPS) has supported appliance retailers since 1990, offering long-term industry stability and trust
  • Large-scale customer and product coverage – CPS has protected more than 75 million products for over 60 million customers, reinforcing deep operational expertise
  • Strong claims and service infrastructure – Over $450 million in claims paid each year and a network of 50,000+ servicers ensures reliable support and quick resolution
  • Extensive retail partnerships – With 10,000+ retail partners nationwide, CPS works with independent stores, multi-location dealers, and large distributors
  • Nationwide and factory-authorized service capabilities – CPS supports both independent and factory-authorized repair networks, covering a wide range of appliance brands and models
  • U.S.-based support and long-term relationships – Retailers and customers receive dedicated, U.S.-based onboarding, service, and ongoing assistance for every stage of the relationship
  • Broad coverage across product categories – With protection for 60+ product categories, CPS adapts to nearly any appliance retailer’s inventory and business model

CPS Warranty Replacement FAQ

When does CPS involve the original dealer in a warranty replacement?

CPS involves the original selling dealer whenever a covered appliance is deemed unrepairable and a replacement is authorized under the warranty plan.

Does every warranty replacement result in a new sale for the original dealer?

No, but a significant percentage do—especially when the dealer is active in the claims process and replacement workflow.

How does CPS help retailers retain replacement sales revenue?

CPS routes replacement transactions through the original dealer, giving them the opportunity to complete the new sale and maintain the customer relationship.

What percentage of CPS warranty replacements lead to a new sale for the dealer?

CPS dealer observations show a meaningful percentage of warranty replacements—often over half—are fulfilled through the original dealer, keeping the revenue in-store.

Can dealers offer upgrades or bundles during a warranty replacement?

Yes, dealers are encouraged to use replacement events as an opportunity to recommend product upgrades, add-ons, or bundled offers.

Is the replacement process different for True Extended, 50% Back, and SND Coverage?

All major CPS programs give the original dealer the first right to handle replacements, regardless of the specific plan used.

What happens if the dealer declines to handle a replacement?

If the dealer opts out, CPS will assign the replacement to a qualified third-party, but the new sale opportunity may be lost to the original dealer.

How does the replacement process impact customer loyalty?

Replacement events handled by the original dealer strengthen customer loyalty and increase the chance of future purchases.

Can replacement sales be tracked by the dealer?

Yes, dealers can track replacement events and related sales through the CPS dealer portal and program reporting tools.

Are open-box or scratch-and-dent appliances eligible for replacement under CPS?

Yes, CPS SND and Open Box Coverage includes replacement options, and the dealer is typically involved in the fulfillment process.

Does CPS manage all aspects of the claims and replacement process?

CPS manages claim intake, coverage review, service attempts, and replacement coordination, making the process seamless for both customers and dealers.

What are the main benefits to retailers of handling warranty replacements through CPS?

Retailers keep replacement revenue, reinforce customer loyalty, and often generate additional sales through upgrades or add-ons during the replacement process.

How quickly are warranty replacements processed?

CPS works to process replacement events as quickly as possible, coordinating closely with the dealer for efficient completion and customer satisfaction.

Does CPS provide training for dealers on handling warranty replacements?

Yes, CPS offers onboarding and training to help dealers make the most of replacement opportunities and streamline the replacement workflow.

Who can dealers contact for support with warranty replacements?

Dealers can reach the CPS support team by phone, portal, chat, text, Facebook, or email for assistance with any replacement scenario.

How can appliance retailers get started with CPS warranty replacement programs?

CPS warranty replacement programs are designed for appliance retailers who want to turn warranty events into new sales and long-term customer relationships. By involving the original dealer in every replacement decision, Consumer Priority Service ensures that retailers keep the revenue, loyalty, and upgrade opportunities that come with servicing covered appliances.

Getting started is straightforward—CPS provides onboarding support, step-by-step guidance, and dedicated account management to help retailers implement replacement programs quickly. Whether you’re new to warranty sales or looking to optimize your post-sale experience, CPS can tailor the process to fit your business model.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) already works for retailers of every size and setup, from local appliance stores to large distributors. If you want tailored advice or want to see how a CPS replacement program could fit your business, just reach out—the team will help you get started and find the right fit.

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.