Warranty - Somebody Stop Me!

 
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Old 01-11-2018, 09:31 AM   #21
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Re: Warranty - Somebody Stop Me!


Note he said craftsmanship warranty, not materials.
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Old 01-11-2018, 09:35 AM   #22
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Re: Warranty - Somebody Stop Me!


So Joe Sixpack has you build a house for him. You do such a fine job, there's no warranty work needed for 5 years. Then, Joe and Mrs. Sixpack decide to retire and move to be near their kids and grandkids, selling the house you built for them.

They sell it to Jim and Marcia Jones. Soon after they take possession, a tornado rips the roof off. They call you, since the realtor told them they don't have to pay for any repairs.

"Um, no, I'm sorry folks. A tornado ripping off the roof isn't covered. That's an Act of God." The Jones' mumble and complain, stating if you had done a better job of laying the shingles, they'd still have a roof.

Six weeks later, a drunk veers off the road and takes the corner off the garage. Again, they call you because the realtor told them they're covered.

"That's not a fault in craftsmanship...." you explain. Again, you're demonized because you didn't forsee this drunk driver.

It ends up that the Jones' are professional entitlementers. The world owes them everything. They then start bad-mouthing you to their neighbors, their co-workers, the fellow parishoners, about what a terrible man you are for not standing behind your warranty.

Yeah, you can take the moral high ground, but the people they are talking to are only getting their side of the story. And you can't fight that and win.
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Old 01-11-2018, 09:40 AM   #23
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Re: Warranty - Somebody Stop Me!


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Originally Posted by davinciremodel View Post
iím considering offering a craftmanship warranty ďas long as you own the home!Ē iím even considering the possibility of making it transferable should my client sell the home.

I can think of a lot of pros and very few cons. Wadda you think?
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Old 01-11-2018, 11:15 AM   #24
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Re: Warranty - Somebody Stop Me!


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Originally Posted by DaVinciRemodel View Post
Marketing would be the sole reason for it. We add a percentage in overhead to every project for warranty. Every year we take a good portion of those funds out for other things. We just don’t have much warranty work to do.

Over the last 5 years, we’ve done $3,219.91 in warranty work and I’ll bet half of that was not real warranty work – more like goodwill or not worth the argument work.
That may change with the type of warranty you're considering... but, before moving ahead, you might want to consider you're looking at this short-term (i.e. - marketing) and not long term (i.e. - downturns, sale of home, transference issues, interpretations, LAWYERS, etc.)...

All you need is ONE sue-happy customer over the period of "as long as you own your home" to wipe out any justification you can come up with short term and cost you a boatload of money long-term and you can bet Mr. Murphy will pick the IDEAL time for that to happen... there's a lawyer for that... and if it's transferable, you can bet the new owners are more than likely going to test that warranty...

Look, as an example, Corian can last a very long time, but even Dupont (who has much deeper pockets and counsel on staff) only warranties Corian for 10 years... and it still comes with proviso's...

One last thing... people know that warranty's are only as good as long as the company is still in business so "as long as you own your home" sounds good but is tempered by reality...

Interesting idea from a marketing perspective, but I'd encourage you to really think it through...

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Old 01-11-2018, 12:13 PM   #25
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Re: Warranty - Somebody Stop Me!


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Originally Posted by MarkJames View Post
Since you asked....

...don't do it unless you want to deal with future owner nutjobs that you didn't get to pre-select (and decline).

I also can imagine some agent using (and misrepresenting) that warranty to close their home sale.
Good reply! Iíll take ďtransferrableĒ off the table.

Thanks Mark
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Old 01-11-2018, 12:13 PM   #26
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Re: Warranty - Somebody Stop Me!


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Originally Posted by 480sparky View Post
What happens when you close shop, sell the business, or just up and die?
The same thing that happens to any warranty when the business is no longer viable. If you offer 1 year and you die the next day, what happens?
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Old 01-11-2018, 12:14 PM   #27
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Re: Warranty - Somebody Stop Me!


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Originally Posted by Metro M & L View Post
If you have closed the deals for the last ten years without that added risk and expense why would you start doing it now?

I used to offer a three year warranty. I changed it to 18 months. Hasnt affected my business at all. I lose maybe one or two jobs a year because of it but most (95%) don't even ask.

Now, if you only do a couple giant projects a year there might be a different effect. But I don't see a reason to kick yourself in the balls; wait until the market forces you to increase your offer.

If it doesn't make money, it doesn't make sense.
Actually, itís been almost 30 years and Iím considering it to improve my business. Iím interested in having affect.

We do, on average, six projects a year with a average project price of $181k. Our typical customer is in the top 5% of income earners and their home is typically valued at over $1mil.

My intent would be to change those numbers to four projects at $400k for earners in the top 2% with $4mil or better homes.

I believe it does make money when you offer better value.
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Old 01-11-2018, 12:15 PM   #28
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Re: Warranty - Somebody Stop Me!


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Originally Posted by RangoWA View Post
I can see someone suing you because you won't come out and replace a ten year old toilet fill valve.
Not applicable. The warranty covers our craftsmanship only.
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Old 01-11-2018, 12:16 PM   #29
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Re: Warranty - Somebody Stop Me!


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Originally Posted by brickhook View Post
I wouldnt do it, there is so many people out here who are laying and waiting for the smallest opportunity to get every little thing out of someone they can
I get that, but we do so few projects and qualify the client really well. I can see it still carries some risk, just not as much as some that let their imaginations run wild.
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Old 01-11-2018, 12:17 PM   #30
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Re: Warranty - Somebody Stop Me!


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Originally Posted by RangoWA View Post
Costco is too generous with their return policies and us members pay for it. A gal there told me they refunded a guy's bottle of wine because it gave him a headache.
Thereís a cost to improved value and I would intend to have my clients pay the cost.
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Old 01-11-2018, 12:55 PM   #31
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Re: Warranty - Somebody Stop Me!


You could do the whole 'lifetime warranty' but then either:

1) have so many limitations that it is really only covered if 'structure falls down on a sunny day and has been perfectly maintained by contractor'.

2) prorate the compensation over the life time of the product.

Both will sell more up front but you're going to have to shut down lots of 'claims' and manage the bad rap from it. Lots of companies do it, particularly carpet stores in my area.

Its not like selling $30 widgets in high quantity with a lifetime warranty. The people that pay a premium and go with a 'warrantied' service at thousands of dollars are not going to forget about it, and will be sure to claim claim claim.
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Old 01-11-2018, 01:36 PM   #32
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Re: Warranty - Somebody Stop Me!


I think there is merit to this if you install something that needs regular maintenance like a boiler or ac unit etc. offer the warranty if its service by you only and done regularly
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Old 01-11-2018, 01:58 PM   #33
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Re: Warranty - Somebody Stop Me!


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Originally Posted by DaVinciRemodel View Post
Not applicable. The warranty covers our craftsmanship only.
That won't stop you from getting sued.
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Old 01-11-2018, 02:55 PM   #34
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Re: Warranty - Somebody Stop Me!


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Originally Posted by 480sparky View Post
That won't stop you from getting sued.
Cowering in the fetal position in my basement will prevent a lot of bad things from happening.




Itís just not my style.
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Old 01-11-2018, 03:23 PM   #35
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Re: Warranty - Somebody Stop Me!


Quote:
Originally Posted by DaVinciRemodel View Post
Cowering in the fetal position in my basement will prevent a lot of bad things from happening.




It’s just not my style.
Not my style either.


Insult acknowledged.

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