We have all been exposed to warranties in one way or another. Whether for a new appliance, car part, or furniture, we’ve all paid for them because of the peace of mind they provide for the consumer.
But what constitutes a good warranty and why are they important to the end user? In other words, why should you make this investment and how can you trust that the provider of a service will honour their warranty?
The topic is interesting because warranties are meant to provide coverage in the form of repairs or replacements in a worst-case scenario. As much as I understand the case for life insurance, fundamentally, I struggle with paying into a policy that rewards my loved ones in the event of my death (I hope this doesn’t sound irresponsible, and I have a policy just for the record). Warranties are no different.
The reality is that if I’m purchasing a new vehicle that has never been driven, and in a perfect world should operate at the highest level of efficiency, why would a warranty even be discussed?
It’s because the unknown is unknown to everyone and we don’t live in a perfect world, yet.
But why warranties, and have some abused this form of coverage to make an extra profit? Absolutely.
Some years ago, while away with the family for 2 weeks, I received an unsettling call from our local police constable back home. Our upstairs bathroom suffered a ruptured pipe that triggered a major outpouring of water that flowed from the third level in our home to the basement, damaging everything in its path. The home had to be entirely redone, and we were out of the home for a period of 6 months while the company recommended by our insurance company handled the restoration.
We were told by the Project Manager that the workmanship would be covered by a life-time warranty, so we had nothing to worry about; a nice sales pitch to people who had just suffered a major loss to our possessions, memories, and comfort of life.
I’ll revisit this later.
So, what is a warranty and what are the benefits someone should derive from them?
Without the help of AI, Chat, or My Wife, a warranty is a stamp of credibility, superior workmanship & service, and integrity. It communicates to the consumer that you not only vouch for your work, but are committed to them as a partner in good times and bad, not just for the duration of the warranty, but beyond. You are essentially betrothed to that individual/company/leader for the duration of the partnership and will act in the best interests of all parties involved. The warranty is a tangible symbol of a commitment made and should not be an excuse or tarp for poor service.
(…not bad for a simple-minded individual like me! 😊)
The purpose of a warranty is to keep people whole to the best of their ability. This should never be compromised. In our case, the goal should have been to restore (us) our home back to its original state with as little impact to our lives as possible. At the core of this is integrity and a promise of personal and organizational excellence. As the consumer, you should never have to worry about whether the warranty will be upheld by its provider. That’s a given.
Back to my home under water. It’s 3 ½ years since the repairs were completed and we’re enjoying the benefits of a “new home” but the guarantee of life-time protection coverage from the restoration company has proven to be nothing more than words in the moment to pacify vulnerable people. Without going into much detail, it has been a struggle to get the company and Project Manager to honour the warranty, and they’ve missed a great opportunity to grow their business and rebuild a reputation already under water (pun intended).
Warranties are here to stay and will continue to act as a safety net whether for a new purchase or home repair. It is impossible to guestimate whether an organization or individual will follow through as promised, but you’re obligated to question them. Probe to understand the parameters that govern coverage, and what qualifies as a disqualification for coverage. Finally, make sure to get everything in writing and endorsed by all parties. This is far too important to be left to a handshake.
If you have any questions about what makes a good candidate replacement warranty, reach out to me directly. I’d also be happy to share details about our 1-year candidate guarantee.
Wade carefully!