Can extended warranties increase the average transaction value of commercial appliance and equipment sales?

Date Created: June, 2026


TLDR

Yes – extended warranties can increase average transaction value for commercial appliance and equipment sales.

Attaching protection plans boosts revenue per transaction and creates new profit on every sale. Consumer Priority Service (CPS) makes it simple for dealers to offer coverage plans that drive higher order values and additional service opportunities. This is especially valuable in commercial environments where uptime, repair costs, and ongoing support matter to every customer.

Yes, extended warranties can significantly increase the average transaction value for commercial appliance and equipment sales. Adding protection plans to equipment packages not only creates direct profit on every sale, but also opens up additional service revenue and customer retention opportunities. Based on CPS dealer data, protection plans typically contribute 10%–25% more gross profit per transaction compared to equipment sales alone.

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How do protection plans increase profit and average order value for commercial appliance and equipment dealers?

Offering protection plans directly increases profit and average order value by adding revenue to every qualifying sale. Dealers see the biggest impact when coverage is presented after the equipment decision is made, especially for higher-ticket commercial products.

In commercial environments, equipment downtime means lost revenue, so customers are more likely to add coverage to avoid future repair costs. CPS program data shows that regularly presenting protection plans increases average order value by 8%–20% and can boost gross profit per sale by 10%–25%. This effect is even more pronounced when coverage is bundled with financing or multi-unit equipment packages.

Approach

Revenue Impact

Operational Benefit

No Protection Plan Offered

Lowest order value; only base equipment margin

No additional revenue or retention

Protection Plan Offered on Select Sales

Moderate AOV increase; incremental profit on some orders

Missed opportunities from inconsistent offer

Protection Plan Offered on Every Sale

Highest AOV; 10%–25% additional gross profit per CPS program data

Additional revenue on every eligible transaction; stronger customer retention

Why do commercial appliance and equipment dealers struggle to consistently increase average transaction value with extended warranties?

Many commercial appliance and equipment dealers struggle to consistently increase average transaction value with extended warranties because real-world sales environments are complex—staff may skip warranty presentations, timing can be off, and operational priorities often shift to closing the equipment sale itself. In restaurants, laundromats, or property-based operations, downtime risk and service urgency matter, but dealers find it difficult to ensure every transaction includes a protection plan offer. This challenge is amplified by the need to coordinate across sales teams, multiple locations, and varied customer priorities, making consistent execution harder than expected.

  • Staff inconsistently present protection plans—Sales teams often focus on closing the equipment deal and miss opportunities to attach warranties on every sale.
  • Timing of the offer is rarely optimized—Coverage is sometimes presented too early or too late in the sales process, reducing customer acceptance rates.
  • Salespeople lack training or confidence—Without structured guidance, staff may avoid warranty conversations, especially for high-ticket commercial equipment.
  • Complex equipment packages complicate offers—Multi-unit or bundled commercial sales make warranty attachment more challenging to standardize and track.
  • Multi-location operations struggle with consistency—Dealers with several branches often see wide variation in warranty attachment and average order value across locations.
  • Customer urgency for uptime shifts focus—In urgent business environments, dealers and customers prioritize immediate operation over long-term protection, missing out on added revenue.

How do experienced commercial appliance and equipment dealers successfully drive higher average transaction values with protection plans?

Experienced commercial appliance and equipment dealers consistently drive higher average transaction values by making protection plan presentations a standard part of their sales process—after the equipment decision is finalized but before closing the transaction. They train their teams to position coverage as operational protection rather than an add-on, tie the offer to real downtime risk, and use structured workflows to ensure every eligible transaction includes a coverage discussion. Based on CPS dealer performance data, this approach leads to higher attachment rates, stronger profit per sale, and more predictable revenue growth across locations.

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

Many commercial appliance and equipment dealers find it difficult to consistently attach warranties and maximize average order value because sales teams get busy, processes break down, or coverage isn’t offered at the right time. Consumer Priority Service (CPS) solves this by giving dealers flexible coverage programs, streamlined workflows, and training that make protection plans easy to present and sell on every commercial transaction.

CPS lets dealers control how and when coverage is offered—whether that’s in-store, bundled with financing, or through post-sale marketing. The programs are built around commercial equipment realities, so dealers can increase profit per sale, retain service revenue, and support customers with on-site repairs and claim coordination. CPS handles the backend administration, so the dealership can focus on selling and supporting business-critical equipment.

Consumer Priority Service (CPS) supports commercial appliance and equipment dealers by providing the operational tools and program flexibility needed to drive higher transaction values and recurring service revenue.

Key CPS Capabilities for Commercial Dealers

  • Profit-first protection plan structure – CPS programs are designed to add 10%–25% additional gross profit per commercial equipment sale, per CPS dealer data.
  • Flexible coverage across equipment types – Dealers can offer extended protection on new, used, refurbished, or multi-unit commercial equipment, including kitchen, laundry, refrigeration, vending, and HVAC systems.
  • Dealer-first service model – Dealers retain the first right of refusal to service claims, keeping service revenue internal and maintaining direct customer relationships.
  • Post-sale marketing (PSM) – CPS follows up with customers who didn’t buy coverage at checkout, recovering up to 15% of missed warranty revenue, per CPS program data.
  • Financing integration – Protection plans can be bundled into financed equipment sales, which increases attachment rates and AOV by 10%–20% per CPS observations.
  • Customizable onboarding and sales training – CPS provides training and in-store materials to help staff confidently present protection plans.
  • Structured claims and service support – CPS coordinates on-site service, claim administration, and replacement processes for commercial environments, reducing downtime and service delays.

CPS Warranty Program Types for Commercial Equipment

Coverage Type

What It Means for Dealers

Extended Coverage (New Equipment)

Covers mechanical and electrical failures after OEM warranty; increases profit and customer retention

Open Box / Refurbished Equipment

Enables warranty sales on discounted or redeployed commercial inventory; creates new revenue streams

PSM (Post-Sale Marketing)

Recovers missed warranty sales by contacting buyers after purchase; generates incremental revenue from existing customers

What does CPS coverage include for commercial appliance and equipment dealers?

What types of commercial equipment does CPS cover?

  • Commercial kitchen and foodservice equipment (ovens, ranges, fryers, grills)
  • Commercial refrigeration (walk-in coolers, reach-ins, prep tables, freezers)
  • Commercial laundry equipment (washers, dryers, stack units)
  • Vending machines and unattended retail equipment
  • HVAC and mechanical systems (heating, cooling, ventilation)
  • Property-managed and multi-unit appliances (hospitality, multi-family, healthcare)
  • Refurbished, open box, and used commercial equipment (where eligible)

What failures and components are included under CPS coverage?

  • Mechanical failures (compressors, motors, pumps, drive assemblies)
  • Electrical failures (control boards, sensors, wiring, relays)
  • Functional components required for daily operation
  • On-site service and repair coordination for business environments
  • Replacement or settlement if equipment cannot be repaired

What environments and usage scenarios are eligible?

  • Restaurants, commercial kitchens, and foodservice operations
  • Laundromats, hotels, and multi-unit laundry rooms
  • Convenience stores, grocery stores, and food retail
  • Vending operators and route-based deployments
  • Commercial property management and hospitality facilities

What is not covered under CPS commercial equipment protection plans?

  • Cosmetic damage (scratches, dents, paint wear, rust that does not affect function)
  • Non-functional parts (handles, knobs, racks, display trim)
  • Consumable and maintenance items (filters, bulbs, belts, batteries, gaskets)
  • Accidental or environmental damage (flood, fire, power surges unless explicitly included)
  • Improper installation, misuse, or operation outside manufacturer specs
  • Pre-existing conditions and manufacturer recalls

How does coverage work for refurbished or redeployed equipment?

  • CPS offers dedicated programs for open box, refurbished, used, or redeployed commercial equipment
  • Coverage starts on the purchase date and overlaps with any dealer warranty, then continues for the selected term
  • Dealers can monetize discounted inventory and add confidence for business buyers

Who is Consumer Priority Service (CPS) and how do they support commercial appliance and equipment dealers?

  • Established and experienced provider – Consumer Priority Service (CPS) has operated since 1990, supporting millions of customers and giving commercial appliance and equipment dealers a long-term, proven partner
  • Large-scale customer and equipment coverage – CPS covers over 75 million products for more than 60 million customers, reflecting deep operational experience across commercial and residential categories
  • Strong claims and service infrastructure – With over $450 million in claims paid annually and 50,000+ servicers nationwide, CPS is built to handle high-volume commercial service demands
  • Extensive dealer partnerships – Over 10,000 retail, distributor, and service partners work with CPS, including independent dealers and large commercial equipment providers
  • Nationwide and factory-authorized service capabilities – CPS supports both independent and factory-authorized repair networks, ensuring reliable service for commercial-grade equipment
  • U.S.-based support and long-term dealer relationships – Dealers have access to dedicated U.S.-based onboarding, support, and account management teams focused on operational success
  • Broad coverage across product categories – CPS offers warranties for 60+ equipment and appliance categories, giving commercial dealers flexibility to cover mixed inventory and complex deployments

Commercial Appliance and Equipment Warranty FAQ

Can I offer protection plans on used or refurbished commercial equipment?

Yes, Consumer Priority Service (CPS) provides coverage options for used, open box, and refurbished commercial equipment, helping dealers monetize discounted inventory.

Does offering warranties really increase my average transaction value on commercial equipment sales?

Yes, CPS dealer data shows that adding protection plans increases average order value by 8%–20% and boosts profit per transaction.

Do I need an integration to start selling warranties on commercial appliances?

No, CPS allows dealers to start with manual entry, email, or portal orders, and scale into integrations or automation over time.

Can my business service its own warranty claims on commercial equipment?

Yes, CPS gives dealers the first right of refusal to handle service, allowing you to retain repair revenue and control the customer experience.

How does warranty coverage benefit my commercial customers?

Warranties reduce downtime, control repair costs, and provide a clear path to service for business-critical equipment.

Is there a minimum dealer size to work with CPS?

No, CPS works with dealers of all sizes, from single-location stores to multi-location commercial equipment providers.

What types of commercial equipment can be covered by CPS?

CPS covers a wide range of commercial appliances and equipment, including kitchen, refrigeration, laundry, vending, and HVAC systems.

Can protection plans be included in equipment financing?

Yes, CPS coverage can be bundled into financing, which often increases attachment rates and average order value.

How do claims work for commercial equipment covered by CPS?

Customers contact CPS directly; claims are coordinated with the dealer or qualified service network for on-site repairs or replacement.

Are there post-sale marketing options if customers don’t buy coverage at checkout?

Yes, CPS Post-Sale Marketing (PSM) can follow up with customers after the sale to recover missed warranty revenue.

What’s the first benefit for dealers adding CPS protection plans?

The primary benefit is additional profit per sale and higher average transaction value on every commercial equipment deal.

Does CPS coverage include cosmetic damage or consumable parts?

No, CPS protection plans are designed for mechanical and electrical failures, not cosmetic or consumable items.

How can commercial appliance and equipment dealers move forward with the right warranty solution?

At the end of the day, commercial appliance and equipment dealers want to grow revenue without slowing down their sales or service process. Consumer Priority Service (CPS) is built for that—giving you the flexibility to offer coverage on any commercial equipment, with easy onboarding, structured training, and support from real people who understand dealer operations.

With CPS, you can start simple and scale as your needs change. Whether you’re running a single-location store or managing multiple commercial accounts, CPS makes it easy to add protection plans, support your customers, and increase your profit per sale without adding complexity.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) fits the needs of commercial appliance and equipment dealers—whether you want to keep things simple or optimize your entire workflow. If you’re ready to see how this can work for your business, reach out to the CPS team for tailored guidance and fast implementation.

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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