June 7, 2018
Extended Protection Plans:
Breaking Down Risk Management Options:
Service contracts sold by dealers or manufacturers to buyers of commercial products such as construction equipment can increase resale value, raise customer loyalty, boost uptime, and lower operating costs. But before extended protection plan sales can begin, the advantages and disadvantages of various risk management options must be considered.
Editor’s Note: This column, written by Alexander & Preston
founder Jimmy Bynum, is the latest in an ongoing series of
contributed editorial columns. Readers interested in authoring
a contributed column in the future can click here to see the
Guidelines for Editorial Submissions page.
By Jimmy Bynum, Founder & CEO of Alexander & Preston.
As I detailed in my previous article, business-to-business extended protection plans are valuable risk management mechanisms that not only help manage the cost of ownership, but support a more integrated relationship between the dealer and customer. When optimized, these plans create a circular economy, providing both direct and indirect value for manufacturers, dealers, and customers.
When it…
