Manufacturers can generate a significant source of revenue and products by providing service after the initial sales. This could be in form of service contracts or extended warranties. Both represent a lucrative source of recurring revenue and profits.

By providing these types of offerings, your company can deliver added value and build long term relationships with your customers. If your business has not implemented a comprehensive program of warranty and service contract management, you could be leaving the considerable potential for expanded earnings, future sales, and customer satisfaction on the table.

Sometimes companies are reluctant to offer service contracts or extended warranties or don’t succeed at selling them because they haven’t implemented the right systems and processes for managing these programs.

This article, originally published by Detering Consulting, provides insight into how your company can plan for and implement a successful program for managing service contracts. While originally written for SAP users, the article contains a wealth of valuable advice regardless of which platform you use to manage service contracts.

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Would you like more advice on how to build a successful service contract or extended warranty program? Contact Blumberg Advisory Group today for more information.