How much revenue do appliance retailers lose by not offering protection plans?

Date Created: June, 2026
TLDR
Appliance retailers lose significant revenue by not offering protection plans.
Stores typically miss out on 10%–25% additional gross profit, recurring service revenue, and long-term customer retention opportunities when protection plans aren’t offered. Consumer Priority Service (CPS) helps recover these lost profits by enabling warranty sales on new, used, and discounted inventory—both at and after the point of sale. Adding CPS coverage is one of the fastest ways to increase profitability without extra sales volume.
Appliance retailers miss out on a major revenue stream when they don’t offer protection plans, often leaving 10%–25% of additional gross profit on the table. This includes not just the upfront warranty sale, but also lost service revenue and weaker customer retention over time. Consumer Priority Service (CPS) helps retailers recover this revenue by enabling warranty sales across all inventory and providing post-sale marketing to capture missed opportunities.
CPS APPLIANCE WARRANTY PROGRAM
Interested in Offering
CPS Appliance
Warranties?
Join thousands of appliance retailers already using CPS to generate additional revenue and offer extended warranty protection to their customers.
Complete the form and we’ll be in touch shortly!
How much revenue do appliance retailers typically lose by skipping protection plans?
Most appliance retailers lose out on 10%–25% of potential gross profit when they don’t consistently offer protection plans.
This revenue gap is driven by missed warranty sales at checkout, lost service opportunities, and reduced customer retention. CPS dealer data shows that for every 100 appliance transactions, failing to present coverage can mean thousands in missed profit and weaker customer loyalty. Consumer Priority Service (CPS) helps stores close this gap by making it easy to attach protection plans to every appliance sale, including scratch and dent, used, and open box units.
|
Scenario |
Revenue Impact |
Operational Complexity |
|---|---|---|
|
No protection plans offered |
Lowest profit per sale; 10%–25% of gross profit lost |
Minimal effort, but significant missed opportunity |
|
Occasional/partial warranty offering |
Some additional revenue, but up to 50% of warranty potential missed |
Inconsistent execution; staff confusion common |
|
Consistent CPS protection plan sales |
Highest revenue per transaction; full profit potential captured |
Streamlined with CPS workflows and support |
Why is maximizing warranty revenue difficult for appliance retailers in practice?
Many appliance retailers struggle to capture the full revenue opportunity from protection plans because real-world sales execution is inconsistent, sales teams miss attachment opportunities, and retailers often lack systems to recover post-sale warranty sales. These challenges are compounded by staff hesitation, unclear workflows, and the difficulty of tracking missed warranty opportunities across new, used, and discounted inventory. As a result, even well-intentioned stores often leave a large portion of potential profit untapped.
- Inconsistent warranty presentations—Sales teams often skip or forget to present protection plans on every transaction, leading to missed profit.
- Attachment rate variability—Stores see wide swings in warranty penetration due to lack of process, training, or accountability.
- Missed post-sale opportunities—Most retailers do not have systems to follow up and recover warranty sales after the initial purchase.
- Uncertainty around used or discounted inventory—Many retailers are unsure how to offer coverage on open box, scratch and dent, or refurbished appliances.
- Complexity of tracking—It’s difficult for stores to measure missed revenue or identify where attachment rates are falling short.
- Hesitation about customer objections—Sales staff may avoid discussing protection plans due to perceived pushback or lack of confidence.
What do successful appliance retailers do differently to maximize warranty revenue?
Experienced appliance retailers who maximize warranty revenue focus on consistent process, structured training, and capturing every opportunity—including post-sale recovery and coverage on all inventory types. Stores that treat protection plans as part of the ownership experience, rather than an add-on, see higher attachment rates and stronger customer loyalty. CPS observations show that the top-performing retailers monitor presentation rates, use post-sale marketing to recover missed sales, and ensure every customer is educated on repair risks and coverage options.
How does Consumer Priority Service (CPS) help appliance retailers recover lost warranty revenue?
Many appliance retailers lose out on significant profit simply because warranties aren’t consistently presented at the right time, or because they don’t have a system to capture missed sales after checkout. Consumer Priority Service (CPS) solves this by making it easy to offer protection plans on every eligible product—new, used, open box, or scratch and dent—and by running post-sale marketing to recover missed opportunities.
CPS supports retailers with structured onboarding, sales process training, and dealer-first service models. The CPS program includes post-sale marketing outreach, flexible coverage options, and easy order submission (manual, portal, API, or eCommerce integrations), helping stores increase revenue, retain more customers, and maximize profitability across all lines of inventory.
CPS supports revenue recovery and long-term profitability through a combination of purpose-built programs, sales recovery workflows, and flexible dealer tools.
|
Coverage Type |
What It Means for Dealers |
|---|---|
|
True Extended |
Extends coverage after OEM warranty for up to 8 years total; applies to new and eligible discounted inventory |
|
50% Back Program |
5-year plan with a refund if no claims are filed; starts at purchase for new appliances |
|
Scratch & Dent / Used / Open Box |
Allows warranty sales on inventory that would otherwise generate no protection revenue |
- Post-Sale Marketing (PSM): CPS recovers up to 15% of missed warranty sales by contacting customers who didn’t buy coverage at checkout
- Dealer-First Service Model: Dealers can retain service revenue and manage claims directly, supporting stronger customer relationships
- Flexible Onboarding: Retailers can start with manual, portal, batch, or API integrations—no technical barrier
- Structured Sales Training: CPS provides onboarding, process coaching, and practical training to raise staff confidence and consistency
- Real-Time Reporting: Dealers track sales, revenue, and missed opportunities through the CPS dealer portal
These programs help stores increase attachment rates, recover missed revenue, and turn every transaction into a profit opportunity—without adding sales complexity or overhead.
What kind of protection plans does CPS offer for appliances?
How does CPS help appliance retailers increase profit?
- Protection plan revenue: Consistent CPS warranty presentation can add 10%–25% gross profit to appliance sales, even on discounted or used inventory
- Service revenue: Dealers servicing their own claims see up to 20% additional revenue from repairs
- Attachment rate gains: CPS programs and post-sale marketing increase total penetration by 5–15 percentage points
- Inventory monetization: Coverage is available for new, used, open box, and scratch & dent—unlocking revenue on inventory traditional programs can’t cover
- Post-sale recovery: PSM outreach recovers up to 15% of declined warranty opportunities after checkout
What coverage options are included in CPS appliance programs?
|
Coverage Type |
Eligible Inventory |
Coverage Start |
Total Duration |
|---|---|---|---|
|
True Extended |
New, SND, Open Box, Used, Refurbished |
After OEM warranty ends |
Up to 8 years total |
|
50% Back |
New only |
At purchase |
5 years |
|
SND / Used / Open Box Card |
SND, Used, Open Box, Refurbished |
Day 31 |
1 year (can stack with True Extended) |
How does CPS support warranty sales after the initial transaction?
- Post-Sale Marketing (PSM): CPS follows up with customers who didn’t buy a warranty, offering coverage and recovering missed revenue for the dealer
- Dealer credit: Even after the sale, the original retailer gets credit and revenue for any warranty sold via PSM
- No extra staff work: CPS handles all outreach, sales, and administrative tasks
What support does CPS provide for retailer operations?
- Onboarding and training: Dedicated setup support, sales process coaching, and ongoing partnership
- Flexible integrations: Manual order entry, batch upload, API, and dealer portal options—no required integration to start
- Reporting and visibility: Real-time tracking of warranty sales and program effectiveness
- Dealer-first service model: Option for stores with service departments to retain repair revenue and manage claims
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, giving dealers a proven, long-term partner
- Broad customer and product reach—CPS has covered over 75 million products for more than 60 million customers, reflecting deep experience across all appliance categories
- Robust claims and service infrastructure—With $450M+ in claims paid annually and a network of 50,000+ servicers, CPS is built for high-volume, nationwide warranty support
- Extensive retail network—CPS partners with over 10,000 retailers, from local independent stores to multi-location chains, adapting programs for any size
- Nationwide and factory-authorized service—CPS offers both independent and factory-authorized repair capabilities, supporting reliable claims resolution across product types
- U.S.-based onboarding and support—Appliance retailers work with dedicated, U.S.-based teams for onboarding, ongoing support, and operational guidance
- Comprehensive category coverage—CPS covers warranties in 60+ product categories, helping retailers monetize their full inventory mix
Appliance Protection Plan Revenue FAQ
How much profit do retailers typically miss by not offering protection plans?
Most retailers miss out on 10%–25% of additional gross profit by not consistently selling protection plans on appliances.
Can appliance stores offer warranties on used, open box, or scratch and dent inventory?
Yes, Consumer Priority Service (CPS) allows dealers to offer coverage on used, scratch and dent, and open box appliances.
Does every missed warranty sale mean lost revenue?
Yes, each missed protection plan is a lost profit opportunity; most missed sales are never recovered without a post-sale program.
Can appliance retailers recover warranty sales after the initial transaction?
Yes, CPS Post-Sale Marketing (PSM) can recover up to 15% of warranty opportunities that were missed at checkout.
How does CPS help increase warranty attachment rates in stores?
CPS provides onboarding, sales training, and process support to help dealers present protection plans more consistently and confidently.
Do I need a high-tech integration to start selling CPS warranties?
No, CPS supports manual, portal, batch, or API order submission—no integration required to get started.
Can my store service its own CPS warranty claims?
Yes, CPS gives dealers the first right to service their own warranty claims, which helps retain service revenue.
Are warranty programs profitable for small independent retailers?
Yes, warranty sales are among the highest-margin products for both small and large appliance stores.
Does CPS support eCommerce and in-store sales?
Yes, CPS offers solutions for in-store, online, and marketplace warranty sales, including Shopify and BigCommerce integrations.
How quickly can a dealer start selling CPS warranties?
Most dealers can begin offering CPS protection plans the same week they sign up, with minimal setup required.
What if my team isn’t confident selling warranties?
CPS provides training and support to help sales staff increase confidence and present coverage more consistently.
Do protection plans help with customer retention?
Yes, warranty buyers are more likely to become repeat customers and have higher lifetime value for the retailer.
What’s the best way for appliance retailers to recover lost protection plan revenue?
At the end of the day, appliance retailers looking to maximize profit without adding sales complexity need a solution that works with their real-world process. Consumer Priority Service (CPS) delivers that by making it easy to offer protection plans, recover missed sales, and adapt to any store size or sales channel.
CPS supports retailers with flexible onboarding, practical sales training, and ongoing support across new, used, and discounted inventory. Whether you’re an independent dealer or a large chain, CPS helps you turn missed warranty opportunities into real profit and stronger customer relationships.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help you
Consumer Priority Service (CPS) works with all types of appliance retailers, from independent stores to large multi-location operations. If you want to see how CPS can help your business capture more warranty revenue, the team is ready to walk you through your options and optimize your setup for maximum profit.
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.
© Consumer Priority Service (CPS). All rights reserved.

