Service plans are contracts. Consumers that opt in will pay an added fee in order to get coverage of a purchased product, usually something of perceived value. These contracts are much like extended warranties but with some key distinctions. Extended service plans are widely available in many varieties.
These contracts are different from warranties that are given by the manufacturer of a product. Usually these kinds of contracts will require preventative and routine maintenance in line with the manufacturer warranty. Still, there does not have to be product failure or malfunction in order for these to be activated. These plans start on the purchase date, which is different than extended warranties that become active when the manufacturer warranty expires.
A big distinction that can be made between these two contracts is that warranties are strictly designed to cover the defects in workmanship or materials used. In contrast, the service plans will cover the failure of a product, regardless of the cause. Usually there are some exclusions outlined in the policies of the plan. Most come with extra benefits, such as: accidental damage, technical support, no lemons policy, priority service, and theft.
The way in which the products are serviced will depend on the type of plan. Sometimes the work is done by in-house technicians who have been hired by retailers. In other instances, the product must be shipped out and send elsewhere for repair, which could add to the expenses. Retailers might also give customers a store credit or a replacement that is new from inventory. Typically credits or replacements are only given when the product is too costly to fix or cannot be repaired.
Ultimately, the consumer is the person who decides whether this is needed and worth the money. Many times this is based on what the product is and the perceived value it has. Most standard contracts will cover the average repair costs and are given to those as a way to keep customers from hiring competing companies to do the repair work.
Typically, these last for quite a long period of time and might include extras. Those who are not familiar with a product may choose to buy a plan that comes with customer support and other such benefits. Still, the decision should be that of the consumer. The plans are not required.
Plans are accessible in many parts of the worlds, through many different sources. These are most popularly paired with products that are thought to be valuable or fragile, for instance: devices that are electronic. Some goods sold at stores do not earn retailers that much money so it is important that these parties sell contracts of this sort and accessories to bring in more money.
Extended service plans refers to contracts consumers may opt to have when purchasing certain goods. These are much like extended warranties, but there are some notable differences between the two. In general, they are used to replace or fix products that have malfunctioned or failed. These will vary in cost and coverage.
These contracts are different from warranties that are given by the manufacturer of a product. Usually these kinds of contracts will require preventative and routine maintenance in line with the manufacturer warranty. Still, there does not have to be product failure or malfunction in order for these to be activated. These plans start on the purchase date, which is different than extended warranties that become active when the manufacturer warranty expires.
A big distinction that can be made between these two contracts is that warranties are strictly designed to cover the defects in workmanship or materials used. In contrast, the service plans will cover the failure of a product, regardless of the cause. Usually there are some exclusions outlined in the policies of the plan. Most come with extra benefits, such as: accidental damage, technical support, no lemons policy, priority service, and theft.
The way in which the products are serviced will depend on the type of plan. Sometimes the work is done by in-house technicians who have been hired by retailers. In other instances, the product must be shipped out and send elsewhere for repair, which could add to the expenses. Retailers might also give customers a store credit or a replacement that is new from inventory. Typically credits or replacements are only given when the product is too costly to fix or cannot be repaired.
Ultimately, the consumer is the person who decides whether this is needed and worth the money. Many times this is based on what the product is and the perceived value it has. Most standard contracts will cover the average repair costs and are given to those as a way to keep customers from hiring competing companies to do the repair work.
Typically, these last for quite a long period of time and might include extras. Those who are not familiar with a product may choose to buy a plan that comes with customer support and other such benefits. Still, the decision should be that of the consumer. The plans are not required.
Plans are accessible in many parts of the worlds, through many different sources. These are most popularly paired with products that are thought to be valuable or fragile, for instance: devices that are electronic. Some goods sold at stores do not earn retailers that much money so it is important that these parties sell contracts of this sort and accessories to bring in more money.
Extended service plans refers to contracts consumers may opt to have when purchasing certain goods. These are much like extended warranties, but there are some notable differences between the two. In general, they are used to replace or fix products that have malfunctioned or failed. These will vary in cost and coverage.
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