Can I sell extended warranties through my commercial equipment service department?

Date Created: June, 2026
TLDR
Yes – commercial equipment dealers can sell extended warranties through their service departments.
This creates a strong revenue opportunity by connecting coverage offers to real repair consultations, technician visits, and replacement recommendations. Consumer Priority Service (CPS) supports this model, allowing dealers to offer protection plans on both new and previously deployed commercial equipment, with dealer-controlled servicing and flexible program options.
Yes, commercial appliance and equipment dealers can offer extended warranties right through their service departments. This approach leverages every technician interaction, repair consultation, or replacement recommendation to generate additional profit while directly supporting customers’ operational needs. CPS protection plans are structured to fit this service-driven model and, based on CPS dealer data, warranties sold through service departments often deliver 10%–25% additional gross profit per event.
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How do technician interactions create warranty revenue for commercial equipment dealers?
Technician visits and repair consultations are often the best time for commercial equipment dealers to sell protection plans. When a business faces a costly repair or replacement decision, the value of ongoing coverage becomes immediately clear. Attaching coverage at this point not only creates new profit for the dealer, it also positions the service team as a true operational partner for the customer.
Many commercial appliance and equipment dealers see increased warranty sales when technicians are empowered to discuss coverage options during service calls or after major repairs. According to CPS program data, presenting protection plans after a repair event can increase coverage acceptance rates by 20%–35% compared to point-of-sale alone.
- Technician trust – Customers rely on service department recommendations, making coverage offers more credible.
- Real-world repair context – Seeing repair costs first-hand highlights the value of extended coverage.
- Revenue boost – Service-driven warranty sales create additional profit without requiring extra store traffic.
- Customer retention – Extended coverage through the service department helps keep future repair business with the dealer.
- Post-sale marketing – Dealers can recover missed warranty sales after the initial equipment purchase.
|
Scenario |
Revenue Impact |
Operational Complexity |
Dealer Control |
|---|---|---|---|
|
Technician-driven warranty sales during service calls |
High – creates new profit on every repair or replacement event |
Low – integrates naturally into existing service workflows |
Full – dealer controls pricing and service delivery |
|
Traditional point-of-sale warranty offers only |
Moderate – misses revenue from repair-driven opportunities |
Medium – requires consistent sales team execution |
Partial – less control over post-sale events |
|
No warranty program offered through service department |
None – all post-sale repair revenue is lost to outside providers |
Lowest – no additional process but lost opportunity |
Minimal – no influence over future service or revenue |
Why is selling extended warranties through the service department challenging for commercial appliance and equipment dealers in real operations?
Many commercial equipment dealers struggle to consistently sell extended warranties through their service departments because the timing, urgency, and complexity of service events make it harder to execute a structured sales process. In commercial environments—where equipment downtime directly impacts business revenue and technician visits are often high-pressure—balancing repair speed, customer communication, and warranty presentation requires coordination and training. This is especially true for dealers handling multi-unit properties, restaurants, or facilities with urgent operational needs, where missing the moment can mean losing both the service event and the future coverage opportunity.
- Technician focus on repairs – Service teams are often under pressure to resolve issues quickly, making it hard to introduce coverage conversations during urgent visits.
- Inconsistent process – Without clear protocols, some technicians offer warranties while others never mention them, leading to missed revenue opportunities.
- Operational urgency – Businesses facing downtime want immediate solutions, leaving little time for extended conversations about protection plans.
- Complex equipment mix – Commercial environments often include a variety of equipment types and ages, complicating which products can be covered and how.
- Multi-location logistics – Coordinating warranty offerings across several properties or business units increases administrative complexity.
- Limited training – Service staff may lack the training or confidence to present coverage effectively in a high-stakes, technical environment.
How do experienced commercial appliance and equipment dealers actually succeed with warranty sales through their service departments?
Many commercial appliance and equipment dealers who succeed with warranty sales through their service departments focus on timing and team training. They ensure technicians are equipped to introduce protection plans immediately after a major repair or when recommending replacement, rather than during the height of an urgent breakdown. Experienced dealers also standardize the process—using scripts, prompts, or follow-up calls—so every service event becomes a revenue opportunity. CPS dealer data shows that when the warranty conversation is tied to a real repair scenario, acceptance rates and customer retention both improve.
How does Consumer Priority Service (CPS) help retailers handle this?
Many commercial equipment dealers lose revenue because service events aren’t linked to coverage opportunities, especially when technicians are focused on urgent repairs or replacements. Consumer Priority Service (CPS) solves this by making it easy for dealers to offer protection plans during technician visits, repair consultations, and post-sale interactions—without disrupting normal service workflows.
With CPS, dealers control pricing, can service their own warranty claims, and use post-sale marketing to recover missed warranty opportunities. The program is flexible, covers new and previously deployed commercial equipment, and integrates into existing service processes. Based on CPS program trends, dealers leveraging this model see 10%–25% additional gross profit per repair event and improved customer retention when coverage is consistently offered through the service department.
Key CPS capabilities for service-driven warranty sales:
- Profit-first coverage model: Dealers generate additional revenue on every repair, replacement, or service event where coverage is offered and sold. CPS benchmarks show this can add 10%–25% gross profit per covered event.
- Dealer-controlled service execution: Dealers can service their own warranty claims (“first right of refusal”), keeping service revenue and maintaining direct customer relationships.
- Flexible coverage across equipment types: CPS covers new, used, refurbished, and redeployed commercial equipment (including foodservice, refrigeration, laundry, vending, and HVAC) so dealers can protect more of their installed base.
- Post-sale marketing (PSM): CPS follows up with customers who didn’t add coverage at purchase, recovering lost warranty revenue with zero extra work for the dealer.
- Structured technician support: CPS provides training and talking points so technicians know when and how to present coverage during service calls or after major repairs.
- Streamlined claims process: Dealers and customers can initiate claims via phone, web, or text, with clear coordination on service assignments and repair approvals.
- Coverage timeline flexibility: Programs can begin after OEM warranty expiration or overlap with dealer warranty, adapting to each service event or equipment scenario.
- Reporting and tracking: The CPS dealer portal tracks warranty sales, claims, and program performance so service managers can measure impact.
|
CPS Program Type |
What It Means for Commercial Dealers |
|---|---|
|
Extended Coverage (New Equipment) |
Protects new equipment after OEM warranty, covers mechanical/electrical failures in high-use commercial environments |
|
Open Box / Used / Refurb Coverage |
Enables coverage on previously deployed equipment, supporting rental, service replacement, or used inventory sales |
|
Post-Sale Marketing (PSM) |
Recovers missed warranty sales by contacting customers after repairs or replacements, increasing total program revenue |
What does CPS coverage include for commercial appliance and equipment dealers?
What types of commercial equipment does CPS cover?
- Restaurant and foodservice equipment (ovens, fryers, ranges, grills, steamers, prep tables)
- Commercial refrigeration (walk-in, reach-in, merchandisers, freezers, ice machines)
- Laundry systems (washers, dryers, stack units, multi-housing laundry)
- Vending machines and unattended retail equipment
- HVAC and mechanical systems
- Property-managed and multi-unit commercial appliances
What failures and components are included under CPS coverage?
- Mechanical failures: compressors, motors, pumps, drive systems, fans
- Electrical failures: control boards, sensors, relays, wiring harnesses
- Functional components: heating elements, sealed systems, defrost controls
- Parts and labor for covered repairs
- On-site service for commercial environments
- Replacement or settlement if repair is not economical
What is not covered under CPS commercial equipment protection plans?
- Cosmetic damage (scratches, dents, paint, rust, trim)
- Consumables or maintenance items (filters, bulbs, belts, gaskets, hoses)
- Accidental damage (impact, drops, external force)
- Environmental/external damage (flood, fire, storm, water intrusion)
- Failures from misuse, abuse, improper operation, or lack of maintenance
- Installation or infrastructure issues (incorrect electrical, plumbing, or gas connections)
- Pre-existing conditions or manufacturer recalls
What commercial use environments are eligible for CPS coverage?
- Restaurants, bars, and foodservice operations
- Multi-unit housing, property management, and hospitality
- Laundromats, on-premise laundry, healthcare, and institutional facilities
- Retail, vending, distribution, and unattended retail
- Any business environment using covered equipment for revenue generation or operational continuity
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, giving commercial appliance and equipment dealers a partner with long-term industry credibility
- Broad product and customer coverage – CPS has served over 60 million customers and covered more than 75 million products, supporting both residential and commercial equipment environments
- Robust claims and service infrastructure – With over $450 million in claims paid annually and a nationwide network of 50,000+ servicers, CPS is built to handle high-volume service needs for commercial dealers
- Extensive dealer and retailer partnerships – More than 10,000 dealer partners work with CPS, ranging from independent stores to multi-location and large-scale commercial equipment providers
- Nationwide and factory-authorized repair capabilities – CPS supports both independent service departments and factory-authorized networks, ensuring repairs are handled professionally and quickly
- U.S.-based support and long-term relationship focus – Commercial appliance and equipment dealers work with dedicated U.S.-based teams for onboarding, ongoing support, and program optimization
- Coverage across 60+ product categories – CPS supports warranties on a wide range of commercial equipment, allowing dealers to protect mixed inventory and serve diverse customer needs
- BBB A rating and proven trust – CPS maintains an A rating with the Better Business Bureau, reflecting strong industry reputation and dealer confidence
Commercial Equipment Service Department Warranty FAQ
Can I offer extended warranties through my commercial equipment service department even if the equipment wasn’t purchased from my store?
Yes, CPS allows coverage to be offered on eligible equipment regardless of where it was originally purchased, as long as it meets program requirements.
Can my service technicians present protection plans during a repair consultation?
Yes, technician-driven warranty presentations are often the most effective way to attach coverage in commercial environments.
Will my business earn additional revenue from selling warranties during service events?
Yes, CPS program data shows service-driven warranty sales can add 10%–25% additional gross profit per event for commercial equipment dealers.
Can I service my own warranty claims if I sell CPS protection plans through my department?
Yes, CPS gives dealers the first right of refusal to service warranty claims, helping you retain service revenue and customer relationships.
Can extended warranties be sold on used, refurbished, or redeployed commercial equipment?
Yes, CPS offers coverage options specifically for open box, used, and refurbished commercial equipment, supporting rental and replacement scenarios.
Does my service department need special integration or technology to start selling CPS warranties?
No, you can start with manual processes, batch uploads, or simple order entry—no complex integration required to get started with CPS.
How does post-sale marketing work for service-driven warranty sales?
CPS follows up with customers after repair events to recover missed warranty revenue, with all outreach handled by CPS, not your staff.
Are there restrictions on which types of commercial equipment can be covered?
Yes, coverage is available for most major commercial equipment categories—restaurants, refrigeration, laundry, vending, HVAC—but eligibility depends on program guidelines.
Can warranties be sold after an equipment replacement?
Yes, CPS supports post-replacement warranty sales, allowing you to attach coverage to new or replacement units during or after installation.
Will CPS handle claim administration and service logistics?
Yes, CPS manages claims, repair approvals, and service assignments, allowing your service team to focus on repairs and customer support.
Do commercial customers respond well to coverage offers from service technicians?
Yes, CPS dealer feedback shows that businesses are more receptive to protection plans when coverage is presented by trusted service personnel after a relevant repair or consultation.
Can I track warranty sales and claims generated by my service department?
Yes, the CPS dealer portal provides reporting on warranty sales, claims, and program performance, helping you manage results over time.
How can commercial equipment dealers get started with this?
At the end of the day, commercial appliance and equipment dealers want additional revenue streams that fit within their existing service workflows—not more complexity. Consumer Priority Service (CPS) is designed for that reality, offering flexible programs, easy onboarding, and ongoing support for any dealer setup, whether you’re running a single-location shop or a multi-unit service operation.
Dealers can start simple or scale up to full automation over time. With CPS, you get training, program customization, and a U.S.-based support team to help your service department generate additional profit while keeping customer operations up and running.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help dealers
Consumer Priority Service (CPS) is designed to work for any commercial appliance and equipment dealer setup—service-driven, sales-focused, or both. If you want to see how this can fit your operation and start generating more profit from your service department, just reach out to the CPS team for tailored guidance.
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.

