Date Created: June, 2026

TLDR

Yes, with Consumer Priority Service, appliance retailers can earn profit on both the sale and the service side of warranties. Dealers make margin when they sell a CPS warranty and can also generate additional revenue by performing repairs on covered claims if they have an in-house service department. CPS gives retailers first right of refusal on servicing claims, allowing them to keep valuable service revenue in addition to warranty sales profit. According to CPS dealer observations, stores that service their own claims often see 10–25% additional service revenue, making this a key advantage of the CPS program.

CPS APPLIANCE WARRANTY PROGRAM

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How do appliance retailers actually make money on both sides of CPS warranties?

Appliance retailers with a service department can profit from both selling CPS warranties and performing repairs on covered claims.

When a retailer sells a CPS protection plan, they earn margin upfront on the sale. Later, if a customer files a claim and the retailer is equipped to service appliances, CPS gives that dealer the first opportunity to complete the repair. This means the retailer earns service revenue billed at industry-standard rates in addition to the original sale profit. Many CPS dealers report this dual-income approach can significantly increase total store profitability, especially in service-focused markets.

• Warranty Sale Margin – Retailer earns profit at the point of sale on every plan sold
• Service Revenue – Retailer performs covered repairs and bills CPS for parts and labor
• First Right of Refusal – Dealer can choose to service or let CPS assign an outside technician
• Dealer Control – Stores maintain the customer relationship throughout the ownership cycle
• Additional Touchpoints – Handling service creates more opportunities for future sales and retention

Why do appliance retailers use CPS warranty programs that pay on both the sale and the service side?

Appliance retailers use CPS warranty programs that pay on both the sale and the service side because it allows them to maximize profit from every transaction and deepen their customer relationships over the entire ownership cycle. By earning margin on the initial warranty sale and capturing revenue when handling repairs, retailers create an ongoing income stream that extends well beyond the original purchase. This model not only increases overall profitability but also gives dealers more control over the customer experience, supports their service department, and helps drive repeat business—a combination that makes CPS a preferred partner for many independent appliance stores.

• Earn margin on every warranty sold—CPS allows retailers to set pricing and profit from each sale
• Capture additional service revenue—dealers with service departments bill CPS for covered repairs
• Retain first right of refusal—retailers decide if they want to handle each claim or defer to CPS
• Increase customer retention—servicing claims keeps the store connected throughout the ownership cycle
• Improve long-term profitability—dual-income potential can drive 10–25% more revenue per customer according to CPS dealer observations
• Enhance brand reputation—retailers control the service experience, leading to higher customer satisfaction and future sales

How do appliance retailers actually use CPS warranty programs to maximize both sale and service revenue?

Many appliance retailers that use CPS warranty programs maximize their earnings by training the sales team to present protection plans during the sales process and by ensuring the service department is ready to handle covered claims when they occur. In practice, experienced retailers coordinate between sales and service to capture revenue on both sides—making the warranty program a key part of the store’s overall profit model. According to CPS dealer data, stores that consistently present protection plans and actively service their own claims see higher attachment rates, improved customer retention, and stronger year-over-year growth than those who only focus on warranty sales.

How does the CPS dual-income warranty model actually work for appliance retailers?

Consumer Priority Service programs are structured to let appliance retailers earn profit both when selling a warranty and when performing covered service work. At the point of sale, the retailer offers CPS protection plans and earns margin on every plan sold. If the retailer has a service department, they receive the first right to handle any covered repairs that arise during the plan term and bill CPS directly for approved parts and labor at standard industry rates.

This model is seamless for both the retailer and the customer—CPS manages claims administration, verifies coverage, and coordinates with the retailer or assigns a qualified service provider if the dealer declines. This dual-earning structure is designed to enhance store profitability, support service operations, and keep the retailer at the center of the customer relationship throughout the appliance ownership cycle.

Key Workflow Steps

• Retailer presents and sells CPS warranty to customer
• Customer files claim directly with CPS if repair is needed
• Dealer receives first opportunity to handle service
• If dealer services, they bill CPS for work performed
• If dealer declines, CPS assigns an authorized servicer

What does CPS typically cover for appliance retailers?

Consumer Priority Service coverage is designed to protect against real mechanical and electrical failures after the manufacturer warranty period, while excluding cosmetic, accidental, and maintenance-related issues. Here’s a clear breakdown:

What Does CPS Cover?

• Mechanical and electrical failures from normal household use
• Functional components required for appliance operation (motors, compressors, boards, pumps, sensors)
• Parts and labor for covered repairs
• Service coordination through CPS, including first right of refusal for dealer-servicers
• Replacement or reimbursement if repair is not feasible under the plan

What Is Not Covered by CPS?

• Cosmetic damage (scratches, dents, chips, rust stains, appearance issues)
• Non-functional parts (handles, knobs, shelves, decorative trim)
• Consumables and wear items (filters, bulbs, batteries, belts, gaskets)
• Accidental or environmental damage (drops, floods, fire, misuse, improper installation)
• Pre-existing conditions or issues before coverage starts

How does the CPS claims process work for retailers offering both sales and service revenue opportunities?

When a customer experiences a covered issue, they initiate a claim by contacting CPS through phone, web chat, portal, text, or email. CPS reviews the claim, verifies eligibility, and coordinates the required service or repair, giving the retailer the first chance to handle the service if they have a service department.

CPS manages all claim logistics, payment, and customer communication, so the retailer can focus on service delivery while still earning revenue. This approach reduces administrative overhead and ensures the customer has a smooth, guided experience from start to finish.

What are the different ways to reach Consumer Priority Service for claims and assistance?

Consumer Priority Service makes support easy to access for customers, dealers, and service centers, offering multiple ways to connect for questions, claims, and assistance.

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

• Phone – (800) 905-0445
• Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
• CPS Dealer Portal – https://app.cpscentral.com/dealer/login.aspx
• Text – Send a text to (347) 621-7180
• Facebook Chat – http://m.me/ConsumerPriorityService
• Email – dealers@cpscentral.com

Service Centers

• Phone – (800) 905-0445
• Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
• CPS Service Portal – https://app.cpscentral.com/provider/login.aspx
• Text – Send a text to (347) 621-7180
• Facebook Chat – http://m.me/ConsumerPriorityService
• Email – cpsservice@cpscentral.com

How does CPS compare to manufacturer warranties and traditional protection plans for retailer revenue?

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

• Established and experienced provider—Consumer Priority Service (CPS) has operated since 1990, offering appliance retailers a proven, stable partner
• Massive customer and product coverage—CPS supports over 60 million customers and has covered 75 million+ products across the U.S.
• Robust claims and service infrastructure—CPS pays $450 million in claims annually and maintains a network of more than 50,000 servicers for nationwide coverage
• Extensive retail partnerships—Over 10,000 retail partners work with CPS, including independent stores and large multi-location appliance dealers
• Nationwide and factory-authorized repair capabilities—CPS supports both independent and factory-authorized service networks to deliver reliable repairs
• U.S.-based support and long-term relationships—Retailers benefit from dedicated, U.S.-based account management and ongoing partnership support
• Broad product category coverage—CPS offers protection for more than 60 product categories, letting retailers support a wide range of inventory
• Strong reputation and trust—CPS maintains a BBB A rating, reflecting a commitment to service quality and retailer satisfaction

CPS Warranty Profit Model FAQ

How can appliance retailers get started with CPS dual-income warranty programs?

CPS dual-income warranty programs are designed for appliance retailers who want to maximize profit by earning both on the initial sale of protection plans and on the service side through in-house repairs. This model is ideal for independent stores, multi-location retailers, and any dealer with a service department looking to keep more revenue in-house while supporting customers throughout the ownership cycle.

Retailers interested in learning more or getting started with Consumer Priority Service can take advantage of dedicated onboarding, training, and support to quickly implement the program and begin generating additional revenue from both warranty sales and service participation.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with how appliance retailers already operate, from simple setups to fully integrated service models. If you want to see what this would look like for your store, the CPS team can walk you through the setup and help you get started quickly.