Date Created: June, 2026

TLDR

Yes – extended warranties are worth offering for most appliance retailers. They generate extra revenue on every eligible sale and help protect customers after the manufacturer warranty ends. With Consumer Priority Service (CPS), dealers can cover new, used, and discounted inventory while keeping the process simple and profitable.

How do extended warranties actually impact revenue in appliance stores?

Extended warranties can significantly increase profit per sale for appliance retailers.

The main reason this matters is that warranties generate revenue without requiring more traffic or inventory – they are added to transactions you’re already making. CPS dealer data shows that protection plans can add 10–25% in additional gross profit per appliance sale, and top-performing stores often generate a larger share of their total profit from warranties than hardware sales alone. This is especially true on premium and high-ticket appliances, where margins on the product itself are often tight.

Why do appliance retailers struggle to achieve consistent results when offering extended warranties?

Many appliance retailers find that offering extended warranties is more challenging in practice because the process involves more than just adding a product to the sale. Achieving consistent results requires staff to understand when and how to present coverage, navigate different inventory types, and manage customer expectations around claims and service. These factors can lead to gaps in execution, missed revenue opportunities, and uneven customer experiences across the store.

• Inconsistent staff presentation – Many retailers struggle to get every salesperson to present warranties on every eligible sale, which leads to missed opportunities.
• Unclear coverage for open box, scratch and dent, or used inventory – Retailers often aren’t sure how to offer protection beyond new-in-box appliances.
• Workflow disruption – Introducing warranties can complicate the sales process if not integrated smoothly, causing confusion or resistance from sales teams.
• Attachment rate variability – Some stores see strong warranty sales while others lag, making it hard to predict results or plan for revenue growth.
• Limited customer education – Customers who don’t understand post-warranty repair risks are less likely to purchase coverage, reducing attachment rates.
• Difficulty tracking performance – Retailers may lack the tools or reporting to monitor warranty sales, making it challenging to coach staff or optimize results.

How do experienced appliance retailers improve warranty program results in their stores?

Experienced appliance retailers often achieve better results with extended warranties by focusing on consistent sales process execution, staff training, and integrating warranty presentations into the standard workflow after the product decision is made. Many top-performing stores require every eligible sale to include a discussion about coverage, and they regularly track attachment rates at both the store and salesperson level. Retailers that discuss real-world repair costs and frame protection as part of the ownership experience typically see stronger customer acceptance and higher conversion rates.

How does Consumer Priority Service (CPS) help appliance retailers handle extended warranties more effectively?

Many appliance retailers run into inconsistent results and missed revenue because their warranty process is disconnected from the way their team actually sells and services appliances. Consumer Priority Service (CPS) solves this by providing flexible coverage options, post-sale marketing to recover missed sales, dealer-first servicing, and support for all inventory types—including used and open box. CPS makes it easy to increase revenue per sale, integrate warranties into any sales process, and keep the customer experience consistent from checkout through claims.

CPS Appliance Warranty Programs at a Glance

• Dealer-first servicing model – Dealers can service their own claims and retain service revenue or have CPS coordinate with qualified networks
• Post-sale marketing (PSM) – CPS recovers missed warranty sales by contacting customers who didn’t buy coverage at checkout
• Flexible onboarding and integration – Dealers can start with manual order entry, batch uploads, or API integrations, scaling as needed
• Transparent claims process – Customers have multiple ways to file claims, and dealers receive visibility into claim status
• Support for all dealer sizes – Independent stores, multi-location retailers, and eCommerce sellers can all use the same programs

Key CPS Dealer Observations

• Protection plans generate 10–25% additional gross profit per appliance transaction (CPS retailer data)
• Post-sale marketing can recover up to 15% of missed warranty opportunities (CPS PSM benchmarks)
• Stores with consistent warranty presentation achieve 25–40% higher attachment rates (CPS sales process benchmarks)
• Open box and scratch and dent inventory attachment rates often exceed new inventory (CPS SND benchmarks)

What does CPS coverage include for appliance retailers?

How does CPS help appliance retailers increase profit?

• Warranty sales add 10–25% extra gross profit per appliance transaction, according to CPS retailer data.
• CPS supports warranties on all inventory types—including new, SND, used, and open box—expanding revenue opportunities for every sale.
• Dealers control pricing and profit margins, unlike many traditional warranty models.
• Post-sale marketing (PSM) recovers up to 15% of missed warranty sales from customers who declined coverage at checkout.

What types of coverage programs does CPS offer?

How does CPS support all types of dealers?

• Works with independent retailers, buying group members, eCommerce stores, multi-location chains, and distributors
• No minimum volume required to get started
• Manual, batch, and automated integration options available
• Onboarding and sales training included for every dealer

How does CPS handle warranty claims and service?

• Customers file claims via phone, web, chat, text, or email
• Dealers may service their own warranty claims (retaining revenue) or let CPS coordinate service
• Factory-authorized and qualified technician networks ensure high-quality repairs
• Dealers have claim visibility through the CPS portal

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

• Established and experienced provider – Consumer Priority Service (CPS) has been operating since 1990, giving appliance retailers access to a proven, long-term partner.
• Large-scale customer impact – CPS has served over 60 million customers and covered more than 75 million products, reflecting deep experience across retail categories.
• Robust claims and service infrastructure – With $450M+ in claims paid annually and a nationwide network of 50,000+ servicers, CPS supports dealers at scale.
• Broad retail partnerships – Over 10,000 retail partners work with CPS, including independent stores and multi-location operations.
• Nationwide and factory-authorized service capabilities – CPS supports both independent and factory-authorized repair networks for reliable claims outcomes.
• U.S.-based support and relationship focus – Retailers work directly with dedicated, U.S.-based teams for onboarding, support, and ongoing partnership.
• Comprehensive coverage flexibility – CPS offers protection across 60+ product categories, supporting a wide range of inventory types for dealers.

Appliance Extended Warranty FAQ

Q: Can I offer warranties on used, scratch and dent, or open box appliances?

• A: Yes, Consumer Priority Service (CPS) supports coverage for used, scratch and dent, refurbished, and open box inventory.

Q: Do I need an integration to start selling warranties?

• A: No, dealers can start with manual entry, batch uploads, or simple order submission—integrations are optional.

Q: Can my store service its own warranty claims?

• A: Yes, CPS gives dealers first right of refusal to service their own claims and retain the service revenue.

Q: How long does CPS coverage last?

• A: CPS offers up to 8 years total coverage from the original date of purchase, depending on the OEM warranty and program selected.

Q: Is warranty profit really significant for appliance stores?

• A: Yes, warranties often add 10–25% in additional gross profit per eligible sale, based on CPS retailer data.

Q: What happens if a customer doesn’t buy a warranty at checkout?

• A: CPS can follow up with post-sale marketing (PSM) to recover missed warranty opportunities without extra dealer effort.

Q: Does CPS support eCommerce and in-store sales?

• A: Yes, CPS works with physical stores, online retailers, and marketplace sellers, with flexible onboarding and integration options.

Q: Are there minimum sales requirements to work with CPS?

• A: No, CPS works with dealers of all sizes, including small independents and large multi-location retailers.

Q: How does the claims process work for my customers?

• A: Customers file claims directly with CPS via phone, web, chat, text, or email, and repairs are coordinated through qualified networks.

Q: Can I control warranty pricing in my store?

• A: Yes, most CPS programs allow dealers to set their own pricing and control profit margins.

Q: What does CPS coverage typically include?

• A: Coverage includes mechanical and electrical failures, parts and labor, in-home service, and additional benefits like food loss and laundry credit.

Q: Does warranty coverage extend after the manufacturer warranty expires?

• A: Yes, CPS True Extended programs begin after the OEM warranty ends, filling the coverage gap most repairs occur in.

What’s the best way for appliance retailers to implement extended warranties?

At the end of the day, appliance retailers want an easy, profitable way to offer extended warranties without adding complexity to their operation. Consumer Priority Service (CPS) is designed to fit any store setup—independent, multi-location, or eCommerce—so you can start simple and scale as your business grows.

With CPS, you get flexible onboarding, real support from real people, and the ability to monetize every eligible sale. It’s one of the most practical ways to increase revenue, improve customer experience, and keep warranty service connected to your store.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with any appliance retailer, whether you want a simple manual process or full automation. If you want tailored guidance, just reach out—CPS will walk you through the best setup for your business and get you started quickly.