Service plans refer to a kind of contract. These are given to the consumers, at an added cost, who buy certain products. Such contracts are similar to extended warranties, although there are some differences that exist amongst them that the retailer or manufacturer will note. Extended service plans come 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.
One big distinction between these two is that warranties are specifically designed to handle defects in the workmanship or materials. In contrast to that, service plans provide coverage for failure of the product, regardless of cause. Any and all exclusions to this rule will be included in the contract that is given to the customer. Most provide extra benefits as well, such as: theft, no lemons policy, priority service, accidental damage and technical support.
The way the products are serviced will depend on the plan. Some are done by technicians hired by the retailers. Others must be sent out for repair, which could add on to the cost because of shipping. Retailers might just replace the goods with a brand new replacement from store inventory or give a store credit to the customer. The retailer usually replaces the item or gives store credit when the product cannot be fixed or would cost to much to repair.
Overall, consumers are the one who have the final say in whether or not these are worth the price and necessary. Typically this is determined by the perceived value of the product itself. The standard contracts tend to provide adequate coverage for the average repairs and are issued as a way to keep customers away from competing companies.
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 made available through numerous retailers operating around the globe. They are particularly popular for products that are fragile or have value, for instance: electronics. Some goods bring in such little money to the retailers so it is important that these contracts and other accessories are sold to boost total revenue.
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.
One big distinction between these two is that warranties are specifically designed to handle defects in the workmanship or materials. In contrast to that, service plans provide coverage for failure of the product, regardless of cause. Any and all exclusions to this rule will be included in the contract that is given to the customer. Most provide extra benefits as well, such as: theft, no lemons policy, priority service, accidental damage and technical support.
The way the products are serviced will depend on the plan. Some are done by technicians hired by the retailers. Others must be sent out for repair, which could add on to the cost because of shipping. Retailers might just replace the goods with a brand new replacement from store inventory or give a store credit to the customer. The retailer usually replaces the item or gives store credit when the product cannot be fixed or would cost to much to repair.
Overall, consumers are the one who have the final say in whether or not these are worth the price and necessary. Typically this is determined by the perceived value of the product itself. The standard contracts tend to provide adequate coverage for the average repairs and are issued as a way to keep customers away from competing companies.
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 made available through numerous retailers operating around the globe. They are particularly popular for products that are fragile or have value, for instance: electronics. Some goods bring in such little money to the retailers so it is important that these contracts and other accessories are sold to boost total revenue.
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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