How do I get business customers to purchase extended warranties on commercial equipment?

Date Created: June, 2026


TLDR

How do I get business customers to purchase extended warranties on commercial equipment?

Business customers are more likely to purchase extended protection plans when coverage is presented after the equipment decision, tied to downtime risk, and clearly explained as part of operational management. Framing protection as revenue protection, not just an “add-on,” drives higher acceptance. CPS programs support this with structured sales timing, post-sale marketing, and dealer-first service models that fit how commercial equipment is actually used.

Commercial equipment dealers get business customers to purchase extended warranties by presenting coverage after the equipment decision is made and focusing on how downtime impacts revenue. Most operators want a clear path for fast repairs and predictable costs after the manufacturer warranty ends. Consumer Priority Service (CPS) helps dealers turn these conversations into additional profit per sale while supporting operational uptime and long-term customer relationships.

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What sales approaches actually drive extended warranty purchases on commercial equipment?

Commercial equipment dealers see the strongest warranty uptake when coverage is positioned as operational protection—after the core equipment decision—not just as an add-on. This approach ties coverage to real business risks like downtime, service delays, and long-term repair costs, which is how operators actually think about equipment ownership.

Many dealers struggle to get business customers to add protection at the right time, especially when staff present coverage too early or focus only on features. According to CPS dealer data, presenting coverage after the equipment choice, discussing downtime realities, and offering multiple term options increase acceptance rates by 10%–25% compared to generic warranty pitches.

  • Position coverage as revenue protection, not an “extra” — business owners respond to operational risk, not “insurance” language
  • Present after the equipment decision — attachment rates are 18%–32% higher when coverage is offered post-decision
  • Discuss real repair costs and downtime — buyers who understand post-warranty risk are 30%–50% more likely to buy coverage
  • Offer multiple coverage terms — giving options increases conversion by 10%–25%
  • Use post-sale marketing (PSM) to recover missed opportunities — CPS data shows up to 15% of declined warranties can be recovered post-sale

Sales Approach

Revenue Impact

Operational Complexity

Dealer Control

Present coverage after equipment decision

Higher profit per sale; 18%–32% higher attachment

Simple to train and implement

Dealer controls timing and messaging

Generic “add-on” or pre-decision offer

Lower profit; 40%–60% of opportunities missed

Easy but less effective

Less control over outcome

Post-sale marketing (PSM)

Recovers up to 15% additional warranty revenue

Requires data sharing with CPS

Dealer maintains customer relationship

Why is it difficult for commercial appliance and equipment dealers to get business customers to purchase extended warranties in real-world operations?

Many commercial appliance and equipment dealers run into friction selling extended warranties because business buyers focus on operational impact, not just product features. In practice, downtime risk, multi-unit complexity, and urgent service expectations mean that coverage needs to be presented in a way that fits real business use—not as a generic add-on. This creates challenges around sales timing, staff consistency, and aligning coverage conversations with how operators actually think about equipment ownership, especially in restaurants, laundromats, and other high-usage environments.

  • Commercial equipment dealers struggle to align warranty offers with business owner priorities—operators care more about uptime and service speed than features
  • Business customers often see coverage as irrelevant if presented before the equipment decision, leading to lower attachment rates and missed profit
  • High repair costs and downtime urgency mean that service response expectations are much higher than in residential sales
  • Coordinating warranty presentations across multiple locations or sales teams creates inconsistency and lost opportunities
  • Complex coverage options and manufacturer warranty variability make it hard for staff to confidently explain protection value
  • Business buyers expect fast, clear claims handling—slow or unclear processes reduce trust and impact future sales

How do successful commercial equipment dealers actually increase warranty sales and profit in practice?

Experienced commercial equipment dealers consistently drive warranty revenue by training staff to present protection plans at the right moment—after the equipment decision and before finalizing the sale. They focus conversations on downtime risk, long-term repair costs, and business impact, which resonates far more with operators than generic warranty language. Many top-performing dealers also recover missed opportunities using post-sale marketing, and they closely track staff presentation rates and conversion, which CPS knowledge graph data shows can double warranty revenue compared to inconsistent approaches.

How does Consumer Priority Service (CPS) help retailers handle this?

Many commercial appliance and equipment dealers struggle with inconsistent warranty sales because operational needs—like minimizing downtime and managing repair costs—aren’t addressed by generic programs. Consumer Priority Service (CPS) solves this by letting dealers present coverage after the equipment decision, offering post-sale marketing to recover missed revenue, and keeping service control with the dealer or their chosen network, which is especially important for restaurants, laundromats, and multi-location operators.

CPS programs are built to increase profit per sale, fit seamlessly into dealer workflows (from manual to fully automated setups), and support every major commercial equipment category. Dealers benefit from flexible coverage options, the ability to service their own claims, and a structured process that aligns with how commercial equipment is actually used and maintained in real-world business environments.

Consumer Priority Service (CPS) supports commercial appliance and equipment dealers by providing operational tools and program options built for high-usage business environments.

How CPS programs help dealers increase revenue and control

CPS Capability

What It Means for Dealers

Flexible coverage terms (2, 3, 4+ years)

Dealers pick terms that fit business customer needs and increase average order value (AOV) by 8%–20%

Dealer-first service model

Dealers have the right to service their own warranty claims, keeping additional repair revenue

Post-sale marketing (PSM)

CPS recovers up to 15% of missed warranty sales by following up with business customers after purchase

Coverage for open box, refurbished, and used equipment

Dealers can monetize more inventory, including redeployed or discounted commercial units

Multi-channel order handling

Dealers can submit orders manually, in batches, or via API—reducing onboarding barriers and supporting different sales environments

Core CPS commercial coverage types

Coverage Type

What It Means for Dealers

Extended Coverage

Protects against mechanical and electrical failures after OEM warranty ends, creating new revenue per sale

Used / Redeployed Equipment Coverage

Lets dealers protect, sell, and support refurbished or previously deployed equipment, expanding profit and customer trust

Additional workflow support for commercial environments

  • On-site service and factory-authorized repair network for fast turnaround and reduced downtime
  • Unlimited claims to support high-frequency or multi-unit business accounts
  • No forced pricing—dealers control profit margin and MSRP
  • Program customization for multi-location, eCommerce, or service-driven operations

Across CPS dealer programs, operational data shows that dealers using these systems report up to double the warranty revenue and improved service retention compared to those using generic or manufacturer-only programs.

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, grills, dishwashers, prep tables)
  • Commercial refrigeration (walk-ins, reach-ins, merchandisers, freezers, ice machines)
  • Laundry equipment (washers, dryers, stack units, ironers, finishing equipment)
  • Vending and unattended retail machines
  • HVAC, property management, and multi-unit facility appliances
  • Refurbished, open box, and redeployed commercial equipment (where eligible)

What failures and components are typically covered by CPS?

  • Mechanical failures (compressors, motors, pumps, drive assemblies)
  • Electrical failures (control boards, relays, sensors, wiring, power supplies)
  • Functional components needed for equipment operation (fans, heating elements, solenoids, sealed systems)
  • Parts and labor for covered failures (on-site service wherever applicable)
  • Food spoilage coverage for commercial refrigeration (where included in the plan)

What is not covered under CPS commercial equipment protection plans?

  • Cosmetic or appearance-only damage (scratches, dents, paint, surface wear)
  • Non-functional/accessory parts (handles, knobs, trim, shelving)
  • Consumables and wear items (filters, gaskets, bulbs, belts, batteries, hoses)
  • Failures from misuse, environmental events, improper installation, or lack of maintenance
  • Rust, corrosion, flooding, fire, or building infrastructure issues
  • Pre-existing conditions or manufacturer recall responsibilities

Based on CPS program data, most commercial equipment coverage claims are for actual operational failures—like compressor or control board failures in refrigeration, or drive and pump failures in laundry—rather than cosmetic or maintenance-related issues.

How does CPS structure coverage for new and used commercial equipment?

Equipment Type

Coverage Start

Coverage Structure

New Commercial Equipment

After OEM warranty ends

2–5 year extended coverage aligned to real operational lifecycle

Open Box / Refurb / Used

On purchase date

Coverage overlaps dealer warranty for 90 days, then CPS takes over (up to 4 years total)

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 served the industry since 1990, giving commercial appliance and equipment dealers a long-standing, trusted partner
  • Large-scale customer and product coverage—CPS has covered over 75 million products for more than 60 million customers, demonstrating deep experience across commercial and residential sectors
  • Robust claims and service infrastructure—Over $450 million in claims paid annually and a 50,000+ nationwide servicer network means CPS reliably supports high-volume, business-critical repairs
  • Extensive dealer partnerships—With 10,000+ retail partners of all sizes, CPS is built to support independent, multi-location, and commercial equipment-focused operations
  • Nationwide and factory-authorized service capabilities—CPS coordinates both independent and factory-authorized repair, ensuring reliable service for commercial-grade equipment
  • U.S.-based support and long-term relationships—Dealers work with dedicated U.S.-based teams for onboarding, support, and success, not outsourced systems
  • Broad category flexibility—CPS supports 60+ product categories, giving dealers the ability to cover diverse and mixed commercial equipment inventories
  • BBB A rating and proven trust—A strong reputation and track record make CPS a credible partner for commercial appliance and equipment dealers

Commercial Equipment Warranty Programs FAQ

Can I offer extended warranties on used or refurbished commercial equipment?

Yes, Consumer Priority Service (CPS) allows dealers to offer protection on eligible used, open box, and refurbished commercial equipment, creating new revenue opportunities on inventory that typically lacks manufacturer coverage.

Do I need an integration to start selling CPS coverage on commercial appliances?

No, dealers can start with manual submission, batch uploads, or portal entry—integrations are available but not required to launch CPS programs.

Can my business service its own commercial warranty claims?

Yes, CPS gives dealers first right of refusal, so you can service your own warranty claims and keep the service revenue in-house.

How are claims handled for commercial equipment warranties?

CPS manages claims start to finish, coordinating service with either the dealer or a qualified technician for on-site repairs when needed.

What’s the best time to present warranty coverage to business customers?

Present coverage after the equipment decision is finalized—this timing increases acceptance rates and creates more revenue per sale.

What does CPS coverage actually include for commercial equipment?

CPS covers mechanical and electrical failures, including major components like compressors, motors, pumps, and control boards, but excludes cosmetic, consumable, and maintenance items.

Are there coverage options for multi-location businesses or large accounts?

Yes, CPS programs can be structured for multi-location operators, allowing consistent protection, service coordination, and reporting across accounts.

Do protection plans apply to all categories of commercial equipment?

Most major commercial categories are eligible, including refrigeration, foodservice, laundry, vending, and HVAC equipment—check with CPS for specific eligibility.

What happens if equipment can’t be repaired?

If a covered unit can’t be repaired, CPS works with the selling dealer to coordinate replacement or a settlement, depending on program terms.

Can warranty coverage be included in equipment financing?

Yes, including CPS protection plans in financing often increases acceptance rates and overall profit per transaction.

Is there a way to recover warranty sales after the original purchase?

Yes, CPS offers a post-sale marketing (PSM) program that contacts customers after purchase to offer coverage, recovering up to 15% of missed opportunities.

How does CPS help dealers increase profit on commercial equipment sales?

CPS gives dealers control over pricing and attachment strategy, so you capture additional profit per sale without adding operational complexity.

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

At the end of the day, commercial appliance and equipment dealers want to increase revenue, control service quality, and keep business operations running smoothly—without making their own systems more complicated. Consumer Priority Service (CPS) is built for this reality, letting you start simple, scale as needed, and turn every commercial equipment sale into a bigger profit opportunity.

Whether you’re a single-location dealer, a multi-unit operation, or a service-driven distributor, CPS adapts to your workflow and supports your team with onboarding, training, and ongoing support. Dealers can get started with minimal setup and quickly see the benefit of additional revenue, improved customer retention, and stronger service relationships.

Contact Method

Details

Email

dealers@cpscentral.com

Phone

(800) 905-0445


CPS is here to help you

Consumer Priority Service (CPS) is designed to work with commercial appliance and equipment dealers across any setup—from simple manual workflows to integrated, multi-location operations. If you want practical guidance or need help optimizing a protection program for your business, reach out and the CPS team can walk you through the best approach for your commercial environment.

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.

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