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.
A major distinction between these is that warranties are made specifically to cover defects in materials or workmanship of a product. However, service plans offer coverage for product failure, no matter the cause. Typically there are exclusions that will be outlined in the contract itself. Many offer additional benefits, including technical support, priority service, theft, accidental damage and no lemons policy.
How the products will be serviced is determined by the plan itself. Some will say that the work is to be done by technicians that have been hired by the retailer. Others may call for the product to be sent somewhere else to be fixed, which could add to cost because of cost to ship. Retailers may also choose to give the consumer a store credit or a new replacement from their inventory. This usually happens when the product proves to be non-repairable or too costly to fix.
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.
As the name would suggest, these contracts tend to last for a while and sometimes include added perks. People who do not know much about the product that they are purchasing should consider choosing a plan that includes customer support and similar benefits. Still, this is a decision that should be left up to the consumer only because these are in no way required.
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.
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.
A major distinction between these is that warranties are made specifically to cover defects in materials or workmanship of a product. However, service plans offer coverage for product failure, no matter the cause. Typically there are exclusions that will be outlined in the contract itself. Many offer additional benefits, including technical support, priority service, theft, accidental damage and no lemons policy.
How the products will be serviced is determined by the plan itself. Some will say that the work is to be done by technicians that have been hired by the retailer. Others may call for the product to be sent somewhere else to be fixed, which could add to cost because of cost to ship. Retailers may also choose to give the consumer a store credit or a new replacement from their inventory. This usually happens when the product proves to be non-repairable or too costly to fix.
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.
As the name would suggest, these contracts tend to last for a while and sometimes include added perks. People who do not know much about the product that they are purchasing should consider choosing a plan that includes customer support and similar benefits. Still, this is a decision that should be left up to the consumer only because these are in no way required.
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.
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.
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