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July 8, 2021

Why Should We Sell Extended Warranties? We Aren’t Salespeople.

Brad Veregin

“My MSP needs to focus on keeping IT up and running rather than chasing sales.”

Why Should We Sell Extended Warranties? We Aren’t Salespeople.

While refreshing old devices is the preferred choice for most MSPs, clients will typically argue that they don’t have the budget for it or that replacing the devices isn’t their priority. In instances like these, warranties are a must. To make sure that your clients have the right assets and protection, let's take a look at why selling warranties is just as important as your MSP’s IT work.

The Top 4 Reasons to Sell Warranties

1. Protect Your Clients

Car insurance may be required by law but at the end of the day, it’s needed to help protect your valuable assets. When something goes wrong, your insurance policy kicks in to save you time and money. This same logic applies to critical infrastructure. Your clients expect you to keep them operational at minimum cost and warranties are the only way to ensure that in the event that something goes wrong. By protecting against downtime, your clients can have peace of mind knowing their employees will stay productive and revenue loss will be minimal as their IT environment will be back up and running quickly. Warranties also insulate your clients from large expenditures (i.e. money loss) by protecting against unforeseen costs for repairs or replacements.

2. Protect Yourself as the MSP

By protecting your clients’ assets with warranties, you’re also protecting your MSP against any possible SLA violations regarding client downtime. As resolution times are built into warranties, both you and your clients can have confidence knowing assets that break will be fixed within a certain time frame. Your team will no longer have the burden of diagnosing the problem, ordering parts, and implementing the fix while your clients breathe down their neck. With speedy resolution and no hidden costs, you can ensure the highest standards for customer satisfaction no matter what circumstances come your way.

3. Improve Your Profitability

As a cheaper alternative to OEM warranties, ScalePad Warranty Services allow for flexible markups to generate higher margins for you while lowering costs for your clients. With a fast and fully automated process, ScalePad warranty procurement means you’ll spend a fraction of the time getting quotes and procuring warranties. This reduces your team’s non-billable hours and allows them to focus on revenue-generating activities.

4. ScalePad Makes It Easy

With client-facing reports that are automatically created and ready to send at the click of a button, ScalePad makes data visualization easy for clients as devices with expired warranties are highlighted in red. Upon seeing this, clients will often ask you how they can improve their report. This is an opportune time to propose warranties as a simple fix until clients can refresh their devices. It’s easy to get client buy-in as they’re motivated to ‘remove the red’.

Unlike OEM warranties, where you can waste days trying to get any traction, it takes seconds to get a quote and procure ScalePad Warranty Services. This makes selling warranties a low-effort and high-reward solution for your business as you can decrease your non-billable hours and freely set your margin to ensure high profitability.

I love ScalePad because it is so useful and easily justifies the cost. We only have to sell a few warranties to pay for the product over the year. I wish more vendors had products that pay for themselves. Many make claims to improve efficiency, increase automation and all that, but they don’t live up to the hype and become an expense. With ScalePad, a warranty sale or two covers the cost for the year. ScalePad is doing things that are in the best interest of the MSP, and those are the types of vendors that I want to work with.

Brendan Cosgrove
COO, TeamLogicIT

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