Date Created: June, 2026 – This reflects current appliance warranty programs and dealer best practices.

TLDR

Protection plans can contribute an additional 10–25% gross profit to every appliance sale, depending on the attachment rate and program structure. Dealers generate this profit by selling high-margin coverage such as CPS True Extended, 50% Back, and SND Coverage, which allow for flexible pricing and eligibility on new, open-box, scratch-and-dent, and used appliances. The process is straightforward: retailers present protection options at the right point in the sale, CPS handles claims and service, and the retailer earns incremental profit. According to CPS dealer data, top-performing stores often see warranty programs deliver 15–35% of their gross profit mix while also increasing average order value and stabilizing revenue across different inventory types.

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How do CPS protection plans generate gross profit for appliance retailers?

CPS protection plans generate gross profit by allowing retailers to earn high-margin revenue every time a customer adds coverage to an appliance sale.

Retailers typically present CPS True Extended, 50% Back, or SND Coverage after the main product decision, attach the plan to the transaction, and collect the difference between plan cost and selling price as pure profit. Because plans can be offered on new, open-box, scratch-and-dent, and used appliances, nearly every transaction becomes a profit opportunity. CPS manages claims, service, and customer support, so retailers focus on attachment and revenue rather than backend administration.

• High-margin revenue: Warranty sales can add 10–25% gross profit per sale.
• All-inventory coverage: Dealers can monetize new, open-box, scratch-and-dent, and used units under different CPS programs.
• Post-sale recovery: CPS Post-Sale Marketing recovers up to 15% more warranty sales after the initial transaction.
• Dealer-first service: Retailers retain service rights when qualified, keeping additional service revenue in-house.
• No inventory cost: Warranty revenue is generated without holding product inventory or increasing cost of goods sold.

Why do appliance retailers use CPS protection plans to increase gross profit?

Appliance retailers use CPS protection plans to increase gross profit because they provide a consistent, high-margin revenue stream that is not tied to product inventory or discounting. By offering programs like True Extended, 50% Back, and SND Coverage, retailers can monetize almost every appliance transaction, including open-box and scratch-and-dent sales that typically yield lower product margins. CPS handles claims and service logistics, so stores can focus on selling coverage and tracking results. Many dealers see warranty revenue become one of their most profitable categories, directly increasing average order value and bottom-line performance.

• Significant gross profit – CPS protection plans can add 10–25% additional gross profit per appliance sale, often ranking among a store’s highest-margin categories
• All-inventory monetization – Retailers can generate warranty revenue on new, scratch-and-dent, open-box, and used appliances, not just new-in-box units
• Post-sale revenue recovery – CPS Post-Sale Marketing allows dealers to recover warranty sales after the initial transaction, increasing overall attachment rate
• Dealer-controlled pricing – Most CPS programs allow the retailer to set their own warranty pricing and control the revenue margin
• Operational simplicity – CPS manages claims, customer communication, and service coordination, reducing retailer workload and risk
• Service revenue retention – Retailers with service departments can participate in claims, creating additional service revenue beyond the initial sale

How do appliance retailers maximize gross profit from CPS protection plans?

Experienced appliance retailers maximize gross profit from CPS protection plans by making warranty presentation a consistent part of every sales process, not just an afterthought at checkout. The highest performers attach coverage to nearly every eligible sale—new, scratch-and-dent, open-box, and used—using both in-store and post-sale marketing strategies. Many dealers also train staff to offer multiple plan options, bundle coverage into financing, and track attachment rate as a key profit metric. According to CPS benchmarks, stores that prioritize protection plan sales often generate 15–35% of their gross profit from warranties and outperform peers who treat coverage as a secondary offer.

How do CPS protection plans work for appliance retailers?

Consumer Priority Service offers a suite of protection plans—True Extended, 50% Back, and SND Coverage—that are structured for appliance retailers to maximize gross profit and revenue across all inventory types. These plans allow stores to offer coverage on new products, as well as open-box, scratch-and-dent, refurbished, and used appliances, creating revenue streams from units that may otherwise have limited margin potential. CPS handles claims administration, coordinates service through factory-authorized or qualified networks, and supports the retailer with onboarding, training, and reporting tools.

Retailers control the coverage they offer and set pricing on most plans, enabling them to tailor protection options to their customer base and profit goals. CPS also offers Post-Sale Marketing to recover missed warranty sales and Dealer First Right of Refusal so service departments can participate in claims revenue. The result is a flexible, high-margin program that fits independent stores, multi-location chains, and e-commerce sellers alike.

Key Program Components

• CPS True Extended: Adds 1–5 years of coverage after the manufacturer warranty ends; available for new, scratch-and-dent, open-box, and used appliances with the correct structure.
• CPS 50% Back: Fixed 5-year coverage for new appliances; customers receive 50% of plan price back if unused; only available on new units.
• CPS SND (Scratch-and-Dent) Coverage: 1-year warranty for inventory without OEM coverage (scratch-and-dent, refurb, open-box, used); can be combined with True Extended for longer coverage.
• Post-Sale Marketing: Recovers warranty sales after the original transaction; CPS manages outreach and enrollment, increasing overall profit.
• Dealer Service Model: Dealers can service their own warranty claims, retaining additional service revenue when qualified.
• Claims Administration: CPS manages claims, service coordination, and customer communications, reducing retailer workload.
• Flexible Onboarding & Reporting: Onboarding, training, and detailed portal reporting to track program performance and attachment rates.

Program Workflow

1. Retailer presents CPS protection options to customers at the right point in the sale.
2. Protection plans are attached to the transaction (new, SND, open-box, used).
3. CPS provides documentation and support to the customer.
4. If a claim occurs, CPS coordinates service while involving the dealer when appropriate.
5. Retailer tracks gross profit, attachment rate, and program impact via CPS portal.

What does CPS typically cover for appliance retailers?

CPS protection plans are designed to cover real mechanical and electrical failures that affect the normal function of appliances, starting after the manufacturer warranty ends (for True Extended) or from day 31 (for SND/Open Box). There are clear boundaries—CPS is not a catch-all; it is targeted coverage for operational failures, not appearance, consumables, or external events.

What Does CPS Cover?

• Mechanical and electrical failures after the manufacturer warranty expires (True Extended)
• Parts and labor for covered repairs, including compressors, motors, pumps, control boards, sensors, and more
• Service coordination through CPS, with factory-authorized or qualified technicians
• Replacement or reimbursement if repair is not feasible (“No Lemon” protection for repeated failures)
• Coverage options for new, open-box, scratch-and-dent, refurbished, and used appliances under qualifying programs
• Food spoilage and laundry credit benefits for certain covered failures

What Is Not Covered by CPS?

• Cosmetic damage (scratches, dents, chips, rust, paint, appearance-only issues)
• Non-functional/accessory parts (handles, knobs, decorative trim, shelves, racks)
• Consumables and wear items (filters, bulbs, batteries, belts, gaskets, fuses)
• Accidental damage, misuse, or neglect (dropping, physical impact, improper use)
• Environmental, flood, fire, or natural disaster damage
• Installation errors or issues outside the appliance itself
• Failures during the active manufacturer warranty period

How does the CPS claims process work for appliance retailers?

A claim is triggered when a customer experiences a covered failure and contacts Consumer Priority Service (CPS) by phone, web chat, portal, text, or email. Customers provide their product details and a description of the issue, and CPS verifies coverage and confirms the claim.

CPS manages the entire process, from claim review to service assignment and repair coordination, involving the dealer when they wish to service their own sales. This approach reduces the retailer’s administrative burden and ensures a guided, efficient experience for the customer, with CPS providing communication and resolution throughout.

How can customers, dealers, and service centers contact CPS for support?

CPS makes it easy for customers, appliance retailers, and service centers to get help through multiple contact channels. Whether you need to file a claim, check coverage, or ask a question, support is accessible and responsive.

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 protection plan profitability compare to manufacturer warranties and typical coverage plans?

What is CPS and why do appliance retailers work with them?

• Established and experienced provider – Consumer Priority Service (CPS) has operated since 1990, giving appliance retailers a partner with decades of industry knowledge
• National scale and proven results – CPS has served over 60 million customers and covered 75 million+ products across the U.S., demonstrating deep operational capacity
• Robust service infrastructure – With $450 million+ in claims paid annually and a network of over 50,000 service providers, CPS supports both independent and factory-authorized repairs
• Strong retail partnerships – CPS works with 10,000+ retail partners, including independent stores, multi-location groups, and ecommerce sellers
• Flexible, broad coverage – CPS supports warranties across 60+ product categories, allowing retailers to protect a wide range of appliances and electronics
• U.S.-based support and dedicated onboarding – Retailers work with a U.S.-based team focused on long-term support, training, and partnership success
• Consistent trust and reputation – CPS maintains a BBB A rating and long-term industry relationships, giving retailers and customers added confidence

CPS Protection Plan Profitability FAQ

How can appliance retailers get started with CPS protection plans?

CPS protection plans are designed for appliance retailers who want to generate more gross profit on every sale, regardless of inventory type. With flexible programs like True Extended, 50% Back, and SND Coverage, stores can monetize new, open-box, scratch-and-dent, and used appliances, while CPS manages claims, service, and customer support. This approach makes warranty revenue one of the most reliable and scalable profit streams for dealers of any size.

Retailers interested in growing their profits with CPS protection plans can get started quickly with help from the CPS onboarding team. Support is available for setup, training, reporting, and ongoing optimization to ensure every eligible sale maximizes gross profit.

CPS is here to help you

Consumer Priority Service (CPS) is built to work with every type of appliance retailer, whether you sell new, open-box, or used products. If you want tailored guidance for your store or want to see how protection plans could boost your profit, reach out to the CPS team—they’re ready to help you get started.