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.
Overall, the choice to get this type of plan is that of consumers. They should decide if it is worth the money and really necessary for what they are purchasing. Usually they make this decision based on the item itself and how much value it holds to them. Most traditional contracts cover average costs of repairs and are given in order to keep the customers from going to competing companies with their repair problems.
These usually last for a long time, hence their name, and may even come with additional perks. People who are not familiar with the good that they are purchasing, and how to use and maintain it, might consider buying a plan that includes customer support among other benefits. However, the decision should be that of the customer alone, as these contracts are not mandatory.
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.
There are many manufacturers and retailers who have extended service plans available to customers. The amount of coverage, as well as the cost, will vary. In general, these are used to replace or fix malfunctioning or failed products. Such contracts are like extended warranties but with some differences.
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.
Overall, the choice to get this type of plan is that of consumers. They should decide if it is worth the money and really necessary for what they are purchasing. Usually they make this decision based on the item itself and how much value it holds to them. Most traditional contracts cover average costs of repairs and are given in order to keep the customers from going to competing companies with their repair problems.
These usually last for a long time, hence their name, and may even come with additional perks. People who are not familiar with the good that they are purchasing, and how to use and maintain it, might consider buying a plan that includes customer support among other benefits. However, the decision should be that of the customer alone, as these contracts are not mandatory.
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.
There are many manufacturers and retailers who have extended service plans available to customers. The amount of coverage, as well as the cost, will vary. In general, these are used to replace or fix malfunctioning or failed products. Such contracts are like extended warranties but with some differences.
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