Service Contracts: A Small Price For Certainty

Posted by Brad Poarch on 02/05/2014

Picture the last time you made a technology purchase from a big box electronics store.   Perhaps you purchased a refrigerator, television or a new computer. 

As you walk up to the register ready to pay, the cashier asks you if you want to include service with that.  Subtly, yet with conviction letting you know that if anything at all happens to the product for the next year or more that the product will be covered.  No questions ask.

If you are like most consumers, you say no thank you and you go on your way.  Most people tend to believe that their product will be okay, and often times they wind up in fact, being okay.

However, at some point the clock runs out on your good luck.  It is day 2 out of warranty and the Fridge springs a leak or the motherboard sizzles and all you can do is shake your head and say, “Darn, I should have bought the warranty.”

In the Audio Visual industry we see the same behavior from many of our customers.  We design and install systems that can be 10k, 100k or sometimes more than a million dollars and when the time comes for the customer to decide if they want a service contract on the project, they hesitate.

They see the value and are willing to pay for the design, hardware and installation, however they aren’t willing to spend 8 % of the price of the project to ensure that their investment runs efficiently for the years to come. 

Understandably, companies all have budgets and when they are doing new technology implementations, they want to stretch their dollar as far as they can go to get the most equipment packed into the system. 

As an integrator, we love that our clients want to spend their money on the hottest gear, however as a business partner we genuinely aspire to see our clients couple adequate service agreements to their systems so they can be sure that they will have the service and support they need when they need it.