Date Created: June, 2026

TLDR

Appliance dealers routinely lose service revenue, parts revenue, and customer retention opportunities when third-party warranty providers control the repair process. This happens because most providers assign claims to outside networks, bypassing the selling dealer’s service department. Consumer Priority Service (CPS) is structured to keep more repair and service opportunities with the dealer, making it possible to recover lost revenue and strengthen long-term customer relationships.

CPS APPLIANCE WARRANTY PROGRAM

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How much service revenue do appliance dealers lose when third-party warranty providers control claims?

Appliance dealers can lose thousands in repair, labor, and parts revenue every year when third-party warranty providers handle claims outside the store’s service department.

Here’s why it matters: When a warranty claim is filed with a typical third-party provider, the repair is often sent out to an external network—meaning the original selling dealer misses out on the paid service call, parts markups, and even the chance to reconnect with the customer for future sales. CPS dealer data shows that for every 100 warranty claims, dealers may lose 60–90 paid repair opportunities if they don’t have first right of refusal.

Why do appliance retailers struggle to retain service revenue when third-party warranty providers handle claims?

Many appliance retailers struggle to retain service revenue when third-party warranty providers handle claims because the standard provider model routes repairs to external networks, bypassing the dealer’s own service department. This disrupts the dealer’s ability to capture repair labor, parts sales, and future customer touchpoints, making it difficult to fully monetize warranty programs and maintain long-term relationships. As a result, dealers often find their service teams underutilized and their customers relying on unfamiliar repair companies.

• Warranty claims are routed away from the selling dealer – third-party providers typically assign repairs to outside networks, not the store’s own service department.
• Dealers lose out on labor and parts revenue – with every externally assigned claim, the dealer misses paid service calls, diagnostic fees, and parts markups.
• Customer relationships weaken – when repairs are handled elsewhere, dealers lose valuable post-sale touchpoints and future sales opportunities.
• Limited visibility and feedback – external service networks make it hard for dealers to track claim status or ensure customer satisfaction.
• No ability to control repair quality – with repairs handled by outside shops, dealers can’t guarantee the experience reflects their standards.
• Difficulty integrating warranty claims into existing service workflows – traditional providers rarely coordinate with dealer operations, creating extra complexity.

How do experienced appliance retailers actually minimize lost service revenue from warranty claims?

Many appliance retailers find that minimizing lost service revenue from warranty claims requires more than just selling protection plans—it comes down to controlling the repair process. Experienced dealers prioritize warranty programs that give them first right of refusal on every claim, allowing their own service teams to handle paid repairs, supply parts, and maintain direct contact with the customer. This not only increases service revenue but also boosts customer retention, as the dealer remains the go-to resource for future appliance needs.

How does Consumer Priority Service (CPS) help appliance retailers retain service revenue on warranty claims?

Many retailers lose service revenue because traditional warranty providers send claims to outside repair networks, cutting dealers out of the paid repair process. Consumer Priority Service (CPS) solves this by giving appliance dealers first right of refusal on every covered claim—meaning your service department gets the first shot at the work before it’s assigned elsewhere.

With CPS, dealers can keep repair labor, parts revenue, and the customer relationship in-house. The system is designed so the selling dealer decides if they want to service the claim or have CPS coordinate it, which supports stronger margins and long-term customer loyalty. For most stores, this model turns warranty sales into an ongoing revenue and retention engine, not just a one-time profit opportunity.

Consumer Priority Service (CPS) gives appliance retailers a dealer-first warranty model that keeps service revenue, parts sales, and customer loyalty connected to the original selling store. Here’s how the key CPS capabilities support this:

Key CPS Coverage Programs for Dealers

• True Extended: Begins after manufacturer warranty ends, extends coverage up to 8 years from purchase date.
• 50% Back: 5-year protection with a 50% refund if unused—dealer retains profit on every plan sold.
• Scratch & Dent / Used / Open Box: Coverage available even on inventory without OEM warranty, driving additional repair and service revenue.

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

How does CPS help appliance retailers increase profit on warranty sales?

• Dealer-first service model keeps repair, labor, and parts revenue in the store.
• Flexible coverage programs allow protection on new, used, and scratch-and-dent inventory—expanding total profit potential.
• Unlimited claims create recurring service events and additional revenue opportunities throughout the product’s ownership cycle.
• Post-sale marketing (PSM) recovers missed warranty sales, converting lost opportunities into new profit without extra sales effort.
• Most CPS dealers report 10–25% additional gross profit from protection plans (CPS retailer data).

What coverage programs does CPS offer for appliances?

How does CPS manage claims and service for retailers?

• Dealer first right of refusal on all claims—your service team gets the work first.
• CPS coordinates repair scheduling, paperwork, and customer support, reducing dealer admin time.
• Nationwide, factory-authorized repair network available when dealer chooses not to service.
• Clear coverage exclusions—cosmetic issues, consumables, accidents, and environmental damage are not covered under standard plans.

How does CPS recover missed warranty sales for dealers?

• Post-Sale Marketing (PSM) program identifies customers who didn’t buy coverage at checkout.
• CPS team contacts those customers, offers protection, and credits the dealer for every sale.
• No extra work for the retailer—PSM drives up warranty attachment rates and recovers lost revenue opportunities.

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

• Established, experienced warranty provider—Consumer Priority Service (CPS) has been operating since 1990, giving retailers a partner with decades of proven industry experience.
• Covers over 75 million products for more than 60 million customers—demonstrating large-scale operational capacity and reliability for high-volume retailers.
• Processes $450M+ in claims paid annually—backed by a nationwide network of 50,000+ servicers for responsive repair handling.
• Trusted by over 10,000 retail partners—including independent stores, buying group members, and multi-location operations.
• Supports nationwide and factory-authorized service—helping retailers maintain high repair standards and customer loyalty.
• Provides U.S.-based onboarding, training, and support—ensuring real people are available to help dealers before and after launch.
• Delivers coverage across 60+ product categories—allowing appliance dealers to protect a wide range of inventory with one program.

Appliance Warranty Service Revenue FAQ

How can appliance retailers get started with a dealer-first warranty program?

Appliance retailers looking to recover service revenue and control more of the post-sale experience will benefit from the dealer-first model built into Consumer Priority Service (CPS) programs. CPS makes it easy for any dealer—regardless of size or service department setup—to retain repair, labor, and parts revenue that would otherwise go to third-party networks.

Onboarding is straightforward, with flexible options for both low-tech and fully integrated stores. With real support, training, and a focus on revenue growth, CPS helps appliance retailers turn warranty programs into a long-term service and profit engine.

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.