As the mobile accessory industry continues to grow, product performance guarantees are becoming more of a necessity. Here’s how OEMs can benefit.
Thanks in large part to the development of advanced features, the mobile phone repair industry has now reached $4 billion. When you look at the manufacturer warranty for, say, the new Apple iPhone X, that number begins to make a lot of sense. Though Apple claims their new glass is unbreakable, there already have been plenty of examples to the contrary. And since drops aren’t covered under the phone’s warranty, customers are left to foot the bill out of pocket. A screen repair on the iPhone X? $279. If it suffers even more damage from a drop, Apple is charging a whopping $549. Yikes!
Many consumers are purchasing protection accessories—like screen protectors or phone cases—to help avoid these types of costs. But the list of tools available to protect consumer devices doesn’t end there. OEMs can add an additional layer of protection by enlisting a product performance guarantee from a third-party warranty provider. OEMs can use these measures—warranties that supplement the benefits of owning a protection accessory—to stand behind the quality and value of their product with the promise of a guarantee.
Plus, by working the price of a product performance guarantee into product pricing, you can provide consumers that extra backing within the convenience of a single payment. Offering these types of protection solutions can put you one step ahead of the competition and keep your company top of mind for consumers – if and when their phone is damaged, they know you’ll take care of them because the device is protected, once again, with guaranteed coverage.
Finally, the right partner can (and should!) work with you to create a turnkey solution—from the product itself, to the language on the packaging, to compliant program filing and claims administration services—to best suit your products and customers.
Interested in learning more about adding performance guarantees to your product lineup? Contact Fortegra today to get started!