Steve Cipriano, managing director at Vokèra, explores the issue of boiler warranties.
It won’t come as any surprise that the boiler market declined in 2012 by over two per cent. In a tough economic climate, we are all fighting much harder and longer to win business; whether a manufacturer, merchant or installer. In order to sustain sales and, dare we say it, generate growth, we must find new ways to add value to our offering and encourage sales.
Needless to say, industry has responded to the current market position and in the last 12-18 months, there has been a significant step change and the issue of longer warranties has come to the fore. For a manufacturer the extended warranty is seen as an approval stamp; one of quality, confidence and reliability. With faith in our product and brand, it is hoped consumers will also be filled with confidence and look to us rather than the competition.
Having said this, Vokèra remains ever-mindful of the knock-on effect that longer warranties can have on a number of levels. Not only do they impact on spare part sales, to the detriment of our merchant partners, but also our bottom line as a manufacturer. For the installer, there is also a reduction in boiler maintenance work. On a more positive note for the installer, the terms and conditions of the warranty do usually state that a boiler must have an annual service to ensure validity.
Nevertheless, the longer warranty seems to have been awarded an extended life itself and has become much more than a mere fad. Understandably during tough economic times, we must all look to add value to our customers, and so it would seem warranties are the solution of the moment. After all, extended warranties can often be a big selling point for consumers, as, naturally, they feel they’re getting more for their money.
[author image=”https://www.installeronline.co.uk/wp-content/uploads/2013/02/stevecip.jpg” ]Steve Cipriano has been involved in the heating industry for nearly 30 years. He has worked at Vokèra for 10 years, beginning his time with the company as northern regional sales director. He became Vokèra’s managing director in May 2010, having previously managed the company’s operations in Ireland. [/author]
