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extended warrenty

Discussion in 'Irrigation' started by AI Inc, Mar 3, 2008.

  1. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,388

    If you were to offer an extended warrenty , how much per zone per yr would you charge?
  2. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    Depends on parameters of the system. Likely a % of original part cost plus money for time on site directly proportional to failure likelihood given water quality (cleanliness, pressure etc...) while considering the chance that a doofus h/o is going to break something and blame it on the system. All this, only if I put it in and serviced up until this "extension" started.
  3. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,388

    Does anyone here try to sell one? I never have before but looking for new ways to increase profits.
  4. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Posts: 47,650

    There's a Catch-22 here. A system that needs an extended warranty is one I wouldn't offer one to.
  5. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I know of one company here that does it. They even sell one for existing systems they maintain that they DID NOT install. It does include a fall blow out I believe. Unfortunately I do not know what they charge.
  6. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    Even if it puts more money in your pocket for minimal work? I agree though. I hate BUYING extended warranties and never have actually - trucks, computers, appliances, etc.

    Most failing parts are going to be heads, valves, and timers. Most now come with a 3-5 warranty, but you should be able to charge for labor. But, some people like to buy them.
  7. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,388

    Ya know what got me thinking about it is I was buying the wife a new truck this weekend.I too always pass on the warrenty. Ive never been an insurance kinda guy and thats what a warrenty is.
    Most systems ive installed on clean water seem to have no parts used during spring start up ( besides snowplow damage) for 7-8 yrs. So kinda see it as money for nothing. Although I have absolutly no clue on what to charge. I guess the old adage , as much as they will pay.
  8. Tom Tom

    Tom Tom LawnSite Bronze Member
    Posts: 1,278

    I read somewhere that the sales commision on extended warranties in in the neighborhood of 50%.
  9. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,388

    I think one of the reasons Ive never done it in the past is the PITA come billing time of having to look up who has a warrenty and for how long ect.
  10. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 21,974

    Most commercial managers are cheapskates...I always wondered why, it's not out
    of their pocket...wrong, a big box manager told me the landscape management budget
    is part of his operating costs, which determine his bonus at the end of the year.!:dizzy: The only extended warranty I ever bought was a "spill
    protection" warranty for my (second) new laptop!:cry:

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