Monday, 15 February 2010

Dealers are reviewing their warranty business seeking additional revenue and greater support from their suppliers, it was claimed.

Ian Simpson, sales and marketing director with RAC Warranty, said: "Dealers groups are continuing to systematically look at every area of their business during tough economic times in order to maximise their potential revenue, and many seem to have hit upon warranties at roughly the same time.

"What it does mean is that there is more business up for review in the warranty sector than we have seen for several years."

Simpson claimed the key factors being taken into consideration by dealer groups when appointing warranty providers surrounded the level of support being provided - from training of dealer staff to ease of administration to quality of point of sale material.

"Dealer groups who are dissatisfied with their existing supplier tend to feel that they are simply not getting enough help when it comes to selling larger numbers of warranties and upselling to longer and more comprehensive warranties.

"What they want is a clear demonstration that warranty providers will provide long term support especially to staff who are selling warranties to customers, putting in place a proven infrastructure that will help to maximise warranty sales over time."

Simpson believes that this process of supplier review will continue across the market during the rest of 2010.