Date Created: June, 2026

TLDR

Yes – appliance retailers can sell extended warranties on refurbished and open box appliances. These products typically don’t have manufacturer coverage, so adding a protection plan fills that gap. Consumer Priority Service (CPS) allows dealers to cover used, scratch and dent, and open box inventory, turning discounted products into a steady profit stream while protecting customer investments.

What’s the difference between selling warranties on new, open box, and refurbished appliances?

Yes – you can sell warranties on all three, but the process and revenue potential vary by inventory type.

For most appliance retailers, selling protection on discounted inventory is the only way to create additional profit from products that would otherwise have no coverage. Retailers using coverage on open box and refurbished units report stronger buyer confidence and improved inventory turns, according to CPS dealer observations. The key is having a warranty provider that supports these inventory categories without complicated restrictions.

What makes selling warranties on refurbished or open box appliances challenging for appliance retailers?

Many appliance retailers run into operational friction when trying to offer warranties on refurbished or open box appliances because most warranty programs are designed for new inventory only. This creates uncertainty about eligibility, coverage limits, and how to handle claims on discounted products. As a result, retailers often miss out on revenue and struggle to build customer confidence in these high-risk inventory categories, even though buyer demand for protection is strong.

• Most warranty providers exclude open box, used, and refurbished inventory – leaving retailers with no solution for discounted products.
• It’s often unclear what coverage actually applies, especially when manufacturer warranties don’t transfer to open box or used goods.
• Retailers worry about increased claims risk or unclear claim handling for non-new inventory.
• There’s confusion about how to price protection plans on discounted or unique inventory types.
• Operational workflows may not support tracking warranties sold on mixed inventory, leading to missed revenue or reporting issues.
• Customer questions about coverage for “as-is” or SND products can be difficult to answer confidently.

How do experienced appliance retailers successfully offer warranties on refurbished and open box appliances?

Experienced appliance retailers that succeed with warranties on refurbished and open box appliances usually use programs built specifically for mixed inventory. They make sure their coverage actually includes SND, open box, and used products, and they train their sales teams to present protection confidently on every eligible item. Retailers who treat warranty sales as part of the ownership experience – not just an upsell – see higher attachment rates and stronger buyer trust, according to CPS dealer observations. Consistent process, clear eligibility, and simple claims handling are what make these programs work in practice.

How does Consumer Priority Service (CPS) solve the challenges of selling warranties on refurbished and open box appliances?

Many appliance retailers struggle to monetize their discounted and refurbished inventory because most warranty providers do not allow coverage on anything but new products. Consumer Priority Service (CPS) solves this by giving retailers the ability to offer protection plans on used, open box, and scratch and dent appliances with clear eligibility and simple setup.

With CPS, dealers can cover virtually every appliance in their store, regardless of condition, and keep the service revenue in-house if they choose. This flexibility increases profit, improves buyer confidence, and unlocks new revenue streams that most retailers would otherwise miss. CPS also handles the claims process and supports dealers from onboarding through ongoing support, making it practical for stores of any size.

CPS Coverage Programs for All Inventory Types

Key Dealer Benefits

• Profit on every type of inventory – not just new-in-box
• Simple onboarding – works for single stores or multi-location dealers
• Coverage is clearly defined for SND, open box, and used appliances
• Dealers keep service revenue when servicing their own claims
• CPS manages claims, reducing operational burden
• Reporting and tracking for all warranty sales in the dealer portal

What does CPS coverage include for refurbished and open box appliances?

How does CPS help appliance retailers increase profit from refurbished and open box inventory?

• Creates new revenue streams by allowing coverage on inventory that most providers exclude
• Improves average order value and attachment rates on discounted and SND products (CPS dealer data: 12–28% revenue increase)
• Helps recover margin lost through discounting by converting “as-is” sales into protection plan opportunities
• Builds buyer trust, making it easier to sell used, open box, or aged appliances

What coverage does CPS offer for SND, refurbished, and open box appliances?

How does CPS handle claims and service for non-new appliances?

• Customers file claims directly with CPS by phone, web, email, or text
• Dealer has first right to service the claim or CPS dispatches qualified technicians
• Claims process is the same for new, open box, or used inventory
• Service history and claim status tracked in the dealer portal

What onboarding and training support does CPS provide?

• Dedicated onboarding and account management – real people, not automated systems
• Dealer training on how to present warranties for SND/open box
• Sales materials, process guides, and reporting tools provided

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

• Established and experienced provider – Consumer Priority Service (CPS) has supported appliance retailers since 1990, offering decades of operational expertise
• Large-scale customer and product coverage – Over 75 million products protected and more than 60 million customers served, showing deep experience across categories
• Strong claims and service infrastructure – $450M+ claims paid annually and a network of 50,000+ servicers nationwide, giving retailers confidence in claim support
• Extensive retail partnerships – More than 10,000 retail partners, from independents to multi-location groups, work with CPS for flexible coverage
• Nationwide and factory-authorized service – CPS supports both independent and factory-authorized repair, ensuring reliable coverage for different product types
• US-based support and long-term relationships – Retailers partner with dedicated, US-based teams for onboarding, training, and ongoing support
• Broad product/category coverage – CPS supports warranties for more than 60 product categories, making it easy to cover mixed inventory in-store

Refurbished and Open Box Appliance Warranty FAQ

Q: Can I offer warranties on used appliances in my store?

A: Yes, CPS allows appliance retailers to offer coverage on used, open box, and refurbished appliances.

Q: Do I need a special program to cover open box or SND inventory?

A: Yes, most providers require a specific coverage program for non-new inventory; CPS offers a SND/refurb program.

Q: Can my store service its own warranty claims?

A: Yes, with CPS, dealers have first right of refusal to service their own customers and retain service revenue.

Q: Is there a deductible for coverage on refurbished appliances?

A: Yes, CPS SND/refurb/open box plans include a $99 deductible per claim.

Q: What happens if a covered used appliance can’t be repaired?

A: If the product can’t be repaired, CPS may replace it or issue a settlement, coordinated through the retailer.

Q: Does CPS require integration to start selling warranties?

A: No, dealers can start with manual order entry, email, or portal submission; integration is optional.

Q: Can I set my own warranty pricing for open box inventory?

A: Yes, most CPS programs allow dealers to control pricing, including for SND and open box plans.

Q: Are scratch and dent appliances eligible for coverage?

A: Yes, CPS specifically supports protection plans for scratch and dent appliances.

Q: What products are excluded from SND/refurb coverage?

A: Consumables and cosmetic-only issues are excluded; coverage focuses on mechanical and electrical failures.

Q: How long does the coverage last on refurbished inventory?

A: CPS plans typically start on day 31 and can run multiple years depending on the program selected.

Q: Can I offer warranties on both new and used appliances in the same store?

A: Yes, CPS supports mixed inventory so you can cover new, open box, used, and refurbished products together.

How can appliance retailers get started offering warranties on refurbished and open box appliances?

For appliance retailers looking to add profit and buyer confidence to every sale, offering protection plans on refurbished, open box, and used inventory is a practical way to unlock new revenue. Consumer Priority Service (CPS) makes this easy by supporting all inventory types, giving dealers flexible setup options and clear support from onboarding through claims.

Whether you’re a single-store retailer or managing a large operation, CPS adapts to your workflow and helps you start selling warranties right away. You get real people for training and support, plus dealer-first servicing and clear tracking to help you grow your warranty program with confidence.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with how appliance retailers already operate, whether that’s a simple setup or a fully integrated system. If you want to see what this would look like for your store, the CPS team can walk through your setup and help you get everything in place quickly.