Date Created: July, 2026

TLDR

Yes – commercial equipment dealers can offer warranty coverage on scratch and dent, open-box, and display-model commercial appliances and equipment. These categories typically have limited or no manufacturer coverage, so adding CPS protection plans helps control repair risk and creates extra profit on inventory that is already discounted. Based on CPS dealer data, offering coverage on these units often increases revenue by 12–28% compared to selling them without protection.

CPS COMMERCIAL EQUIPMENT WARRANTY PROGRAM

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CPS Commercial Appliance Dealer Warranties

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What are the revenue and operational benefits of offering warranty coverage on scratch and dent, open-box, or display-model commercial equipment?

Offering CPS protection plans on discounted or cosmetically imperfect commercial equipment often leads to higher revenue per transaction and improved inventory turnover. Dealers can monetize inventory that would otherwise have no post-sale support for the buyer, while reducing service exposure and keeping repair work within their own network.

Many commercial dealers overlook these opportunities because coverage is usually focused on new inventory. But CPS program data shows that attaching coverage to open-box or scratch and dent equipment not only increases buyer confidence but also helps move inventory faster and increases average order value by 8–18%.

Why is offering warranty coverage on scratch and dent, open-box, or display-model commercial equipment challenging for dealers in real operations?

Many commercial appliance and equipment dealers find it challenging to offer warranty coverage on scratch and dent, open-box, or display-model inventory because these products typically lack standard manufacturer support and present unique service risks. Dealers have to manage more complex eligibility requirements, customer concerns about reliability, and the operational complexity of servicing discounted units, all while protecting margins on already reduced-price equipment. These factors can create friction in high-turnover environments like restaurants, laundromats, and hospitality operations, making consistent coverage execution harder than it sounds.

• Commercial equipment dealers struggle to find warranty programs that will actually cover scratch and dent, open-box, or display-model inventory because manufacturers often exclude these units from standard support
• Discounted equipment usually lacks full manufacturer coverage, forcing dealers to manage increased service risk and potential repair costs out of pocket
• Handling claims and service for cosmetically imperfect or previously deployed units adds administrative complexity for dealers, especially in multi-location or high-volume operations
• Customers purchasing discounted commercial equipment have higher operational concerns, leading to more questions about service turnaround and reliability
• Coordinating warranty coverage across new, used, and open-box inventory requires flexible program structures that many providers do not offer
• Dealers face revenue pressure from lower-margin sales, making it essential to capture additional profit through warranty attachment without adding operational burden

How do experienced commercial equipment dealers maximize profit and manage risk when selling scratch and dent or open-box inventory?

Many commercial appliance and equipment dealers find that the key to maximizing profit and reducing operational risk on scratch and dent or open-box inventory is to consistently attach flexible protection plans that address the unique risks of discounted equipment. Experienced dealers also focus on clear communication with buyers about what is and isn’t covered, and they use warranty programs that allow them to retain control over service and pricing. CPS dealer trends show that those who standardize coverage on all eligible inventory – not just new products – see higher inventory turnover, increased buyer confidence, and more predictable service outcomes.

How does Consumer Priority Service (CPS) help retailers handle warranty coverage for scratch and dent, open-box, and display-model commercial equipment?

Many commercial equipment dealers struggle with inconsistent coverage and missed profit opportunities when selling discounted or cosmetically imperfect units, especially since manufacturer support is often limited or unavailable on these products. CPS solves this by offering specialized protection plans that are designed for open-box, scratch and dent, floor-model, and redeployed commercial equipment—giving dealers the ability to monetize every eligible unit and control service relationships.

Consumer Priority Service (CPS) allows dealers to offer coverage on inventory that traditional programs won’t touch, with flexible structures that work for new, used, or discounted commercial appliances and equipment. Dealers set their own pricing, keep first right of refusal on service, and can rely on CPS to handle claims, customer support, and post-sale marketing, turning lower-margin sales into additional revenue streams and simplifying operational workflows.

How CPS Protection Programs Support Dealers Selling Discounted Commercial Equipment

• Profit-first program structure – CPS allows dealers to add high-margin protection plans to every eligible scratch and dent, open-box, or display-model commercial appliance or equipment. Based on CPS program data, coverage attachment on these units increases dealer revenue by 12–28% compared to selling without protection.
• Coverage for used, open-box, and redeployed inventory – Specialized CPS plans are available for equipment without traditional manufacturer warranties, including refurbished, returned, and previously deployed commercial inventory.
• Flexible eligibility requirements – Dealers can enroll a wide range of commercial appliances and equipment, regardless of cosmetic condition, so long as they are fully functional at sale.
• Retention of service revenue – Dealers can service their own warranty claims, keeping repair revenue and controlling the customer experience, or rely on CPS’s nationwide network for support.
• Streamlined claims and operational support – CPS manages claim intake, coverage verification, and service coordination, reducing administrative burden for dealers handling mixed inventory.
• Post-sale marketing (PSM) for missed warranty sales – CPS recovers additional revenue by following up with customers who purchase discounted equipment but initially decline coverage, allowing dealers to monetize existing inventory without extra effort.
• Dealer-controlled pricing – Dealers have full control over warranty pricing, supporting profit optimization across discounted, used, or open-box sales.

What does CPS coverage include for scratch and dent, open-box, or display-model commercial appliances and equipment?

What types of commercial equipment are eligible for CPS coverage?

• Commercial kitchen equipment (ovens, fryers, ranges, griddles, steamers, food prep tables)
• Commercial refrigeration systems (walk-in coolers, freezers, reach-in units, merchandisers)
• Commercial laundry equipment (washers, dryers, stack units, folding/finishing systems)
• Vending and unattended retail equipment
• HVAC systems and mechanical equipment
• Other revenue-generating commercial appliances and equipment in foodservice, hospitality, laundry, and property management

What failures and components does CPS typically cover?

• Mechanical failures (motors, compressors, pumps, drive assemblies, fans)
• Electrical failures (control boards, wiring, sensors, relays, electronic modules)
• Functional components required for operation (heating elements, sealed systems, drive components)
• On-site service for eligible equipment and categories
• Replacement or settlement if equipment can’t be repaired

What is NOT covered under CPS protection plans for discounted commercial equipment?

• Cosmetic damage (scratches, dents, paint damage, discoloration)
• Consumable parts (filters, bulbs, belts, gaskets, batteries, hoses)
• Failures caused by misuse, improper operation, or lack of maintenance
• Environmental/external damage (flooding, fire, power surges unless included)
• Installation or infrastructure issues (incorrect setup, facility problems)
• Pre-existing conditions or issues already present at sale

How does CPS coverage structure work for scratch and dent, open-box, or display-model equipment?

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 been supporting commercial appliance and equipment dealers since 1990, building a long-term industry presence
• Large-scale customer reach – CPS serves over 60 million customers and covers more than 75 million products, reflecting proven experience across commercial environments
• Strong service and claims infrastructure – With $450 million in claims paid annually and a network of 50,000+ servicers nationwide, CPS is built for high-volume commercial service needs
• Extensive dealer partnerships – Over 10,000 retailers, dealers, and distributors partner with CPS, including many who operate multi-location or high-turnover commercial businesses
• Nationwide and factory-authorized repair capabilities – CPS leverages both independent and factory-authorized service networks, supporting reliable repairs for commercial-grade equipment
• U.S.-based support and long-term dealer relationships – Dealers work directly with dedicated, U.S.-based teams focused on onboarding, support, and program growth
• Broad category coverage and flexibility – With protection programs spanning 60+ commercial product categories, CPS allows dealers to cover new, used, open-box, and redeployed equipment inventories

Commercial Scratch and Dent & Open-Box Equipment Warranty FAQ

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

When it comes to offering protection on scratch and dent, open-box, or display-model commercial equipment, Consumer Priority Service (CPS) makes it simple for dealers to expand revenue without adding operational headaches. With flexible coverage structures, dealer-controlled pricing, and easy onboarding, CPS lets you start where you are and scale as your needs grow.

Whether you want to protect a handful of discounted units or standardize coverage across your commercial inventory, CPS provides the tools, support, and systems needed to make it work for your business—no matter your size or service setup.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with commercial appliance and equipment dealers of all types, from independent stores to multi-location operations. If you want tailored guidance for your business, reach out and the CPS team can walk through your setup and help you get started quickly.