Warranty Woes: How to Keep Profits and Customer Relationships

Warranty Woes: How to Keep Profits and Customer Relationships

"What do I do when a customer comes in my shop and tells me that the screen we used to replace their device cracked without them dropping it?" This question has been brought up time and time again within our wireless repair community. In fact, we did a quick survey and all respondents offered a warranty to their customers. The length varied but the most common duration of a warranty was 90 days. So what do you say when a customer comes in on day 91 with a broken screen?

We would always empathize and apologize that they're having issues. We would typically ask the customer to bring the device back in so we could take a look at it and see if it would be covered under our warranty. If the customer seemed honest, and there were no points of impact, we would typically replace the screen as it was cheaper to do this than have an upset customer.  It all depends on your pricing model too as we weren't the cheapest, but we weren't the most expensive either. - Dave, eTech Training.

Dave brings up some important points. We see warranties vary between shops the same way we see pricing vary. The warranty duration can be anywhere from 30 days to "lifetime" and can cover just parts or both parts and labor. An important thing to remember when drafting your warranty is your own experiences as a consumer. A restricted warranty may have caused you frustration at some point. There could be a "lifetime warranty," but it doesn't make you anywhere near satisfied if the company won't respond to your calls, emails, or social media posts. Being approachable and reasonable when a customer comes in to have a device fixed under warranty may indeed earn you additional business if you are able to make it a positive experience. Another great point Dave brought up is honesty. We all know that sometimes our customers aren't being completely honest with us. It is important to evaluate the benefits of preserving a relationship with a customer when responding to a customer's demand for a device to be covered by warranty. This is why it is important to have a policy and educate your customers before a problem arises. Another way to prevent issues is to make sure your technicians have plenty of time to do a thorough job. Technicians can feel rushed to do repairs in 30 minutes or less and may not be as cautious as when they are allowed ample time. Many cell phone repair shops feel the need to compete on things like time and pricing but any repair that does not last will result in an unhappy customer. Remember: customers have the ability to spread the word about your business, positive or negative, via word of mouth, social media, and/or online reviews. Purchasing quality parts and having an easy return process with your supplier can also help you offer quality repairs to your customers. A lower defective rate paired with a 6-month or 1-year warranty means we stand behind our parts and the cell phone repair shops that use them. What is the biggest struggle your wireless repair shop faces with warranties? Share in the comments or on our Facebook and Twitter pages.