Extended appliance coverage counters Costco’s offer
By Alan Wolf, YSN
Just in time for the holiday selling season, New Leaf Service Contracts and AVB Marketing are aligning to help BrandSource members compete with box stores and other competitors by offering a one-year warranty extension on appliances.
The program, which launches in the fourth quarter, is ostensibly designed to counter Costco’s OEM warranty extensions, which automatically lengthen the coverage period of appliances and other products purchased online at no additional cost to consumers.
BrandSource members can purchase extended coverage for virtually any appliance that carries an OEM warranty of at least 12 months for $16.31 per SKU, whether or not the product is merchandised by AVB. The plan — which in effect doubles the length of a typical one-year manufacturer’s warranty — covers parts and labor and typically retails for $80-$100. All BrandSource appliance dealers are eligible to participate, regardless of whether they are current New Leaf clients.
AVB Marketing will soon begin promoting the offer on select appliances through members’ group-administered Alta websites (although the offer must be redeemed in-store), and New Leaf will provide in-store promotional material to participating dealers electronically. What’s more, self-servicing BrandSource members will have right-of-first refusal to repair covered products, while non-servicing dealers can leverage New Leaf’s national network of servicers covering over 42,000 ZIP Codes.
“New Leaf is thrilled to be aligned with AVB in helping members compete with the box stores and differentiate themselves from competitors,” said J.R. Zirkelbach, business development executive at New Leaf and a frequent YSN contributor. “New Leaf is unique among providers in the space in that we have the creativity and nimbleness to create and administer such a plan, which further demonstrates our commitment to and understanding of the independent retail channel.”
For more information on New Leaf’s one-year warranty extension offer, visit the BrandSource Backroom for a FAQ fact sheet, contact your AVB member services representative or write Zirkelbach at firstname.lastname@example.org or call him direct at (603) 714-3039.
YSN publisher AVB BrandSource is the nation’s largest merchandising and marketing co-op for independent appliance, mattress, furniture and CE dealers.