Embracing the trend toward extended service agreements
Demand for extended parts and labor warranty products grows; distributors become primary channel for these products to make their way into the marketplace.
The demand for extended service agreement (ESA) products continues to grow and this growth is fueled by both contractors and homeowners. Homeowners have been conditioned to be offered some sort of extended warranty product on just about anything they buy, from appliances to phones and just about anything else. That conditioning has made its way to the HVAC, refrigeration, plumbing and electrical industries.
Homeowners are asking contractors if they offer extended labor options with their installations and contractors look to distributors or third parties to serve their customers’ needs. More often, contractors are including extended coverage with their new equipment installs to stand out from their competitors, and competitors are responding by doing the same.