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.
Contracts of this kind are different than warranties that are issued by product manufacturers. In general, these contracts require some routine and preventative maintenance be done in accordance with the manufacturer warranty. Nonetheless, they do not require that there is a malfunction or require of the product in order for activation. The plans are issued with the purchase and become active on that date. This differs from extended warranties that do not start until the warranty of a manufacturer has expired.
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 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 are available through many retailers and manufacturers. They are similar to extended warranties but with a few key differences. Generally speaking, these are utilized to fix or replace products that have failed or malfunctioned. The type and price of coverage is expected to vary considerably.
Contracts of this kind are different than warranties that are issued by product manufacturers. In general, these contracts require some routine and preventative maintenance be done in accordance with the manufacturer warranty. Nonetheless, they do not require that there is a malfunction or require of the product in order for activation. The plans are issued with the purchase and become active on that date. This differs from extended warranties that do not start until the warranty of a manufacturer has expired.
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 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 are available through many retailers and manufacturers. They are similar to extended warranties but with a few key differences. Generally speaking, these are utilized to fix or replace products that have failed or malfunctioned. The type and price of coverage is expected to vary considerably.