Warranty Wise

My Pedal Broke last weekend

Talk about timing.  I was in Tahoe this last weekend for three days of downhill rides. One at Downieville, CA (a 17 mile downhill rippin ride), another at Hole in the Ground near Donner Pass, CA, (a gorgeous ride in a beautiful canyon all over granite with Sierra vistas) and the other called Mr. Toads on the South Shore of Lake Tahoe, CA, where we rode from Oneidas road at 6500 feet elevation up 8 miles to Armstrong pass at 8800 feet, hung a right and rode up another 2 miles up 600 feet along the Tahoe Rim trail before we descended down the famous Mr Toads Wild Ride and Saxton Creek back to Oneidas, (down granite waterfall, natural and man made stairs, and gnarly banked sweeping turns).  Wow doesn’t even come close…Awesome…..

Guess what. A pin and a spring of my Time pedals broke and disappeared.  Fortunately I discovered it before I ascended. The good news was there was a bike store nearby.  The bad news is they did not have the pin and spring I needed to repair the pedal.  I had to buy a new set.  My direct replacement was $199.99.  I only had a C Note so I had to buy the lower end model.

What would have happened if I had a replacement plan with accidental damage?  I could have called and got authorization for replacement, got the better pedals and have been in good shape….Did my bike store offer me a comprehensive replacement plan?  No.  Did the selling bike store offer me a pedal replacement plan?  No…

The bike industry is begging for our industry to help out.  This industry does $16B a year….

The Headline Effect

Will bad news on the stock market affect your ability to sell Extended Service Plans?  Yes, in a positive way.  People want to feel secure that their investment will last.

Will a headline about the inability of our representatives affect your ability to deliver top notch customer service?  Yes, in a positive way.  Remember, you build your business one customer at a time. If you give people an experience that is great, you will set yourself apart from the headlines.

Don’t let the headlines get you down….Use the to lift your business up.

Check out this video of Joe Jackson doing “Sunday Papers” 

http://www.youtube.com/watch?v=GnaUL8OpBck

42 years Since the Small Step for Man

Happy Birthday Man on the Moon.

Every year on this date my big brother has a birthday so it is easy to remember what they both mean to me.

My brother is someone I can trust at all times.  He understands integrity.  He inspires me.

NASA and the teamwork they have demonstrated over the years inspires me.

Today, as you work to close more deals, do more business, make more money, and improve your image, remember to give better service.  Do it with integrity at the forefront and make sure the entire team has the same vision in mind so you can achieve your goals together…..

Yes, the warranty business can take some lessons from NASA and by brother Dave.

Have a listen to this REM song, “Man on the Moon” from their induction into the Rock and Roll Hall of Fame…pretty cool.  Not really about NASA as it is about Andy Kaufman, but still the Title works for today!

http://www.youtube.com/watch?v=x4c098UVWfE

China Warranties?

I Am in TongLu,,Hangzhou, China, this week to learn about some manufacturing and potentially authorize production for an item I am involved with called Carva.  Check it out at www.grabtownlife.com.  It is amazing to look around at the growth and modernization going on here.  I think I will stop into a few retail stores and assess how the market is for extended plans and learn about the law for manufacturer warranties.  I know AON, AIG and a variety of others have been out in this country for years.  How big is this market?  I think I’ll check back in a day or two and give you my Frank assessment.

The 4th of July The Right to Act

Did you know that a guy named Richard Henry Lee introduced a resolution urging Congress to declare independence from Great Britain on June 7^th.

Between then and June 28^th the draft was created.

Between June 28^th and July 2^nd it was debated.

It was signed by all those famous and not so famous people.  Names like Thomas Jefferson, John Adams, Benjamin Franklin.

On July 2^nd it was adopted and on July 4^th it was printed and distributed.

That means these men of action introduced, wrote, debated and enacted one of the most important things in our USA history in less than a month.

This Act of Action should serve as an example to all of us.  As we celebrate July 4^th with our friends and family today and tonight, maybe we should take note that we would be a different country if those men treated our Declaration of Independence like many of our current national politicians treat our legislative and budget processes.  Acting soley in the name of self or an individual political party, or an individual class or a you name it instead of the best interest of our nation is shameful and often a sign of incredible immaturity.  Without the ability to work together and think of the nation as a whole we can not exist. 

Let’s remember the Men of Action today and use the 4^th of July as a reminder to Act and do our share to help our country.  Whether you are a soldier, a civilian, a you name it,  or a politician you have to get involved and ACT.

Memorial Day 2011

As we continue our occupation in Afghanistan, Iraq, and other countries on this earth, whether or not you agree with the direction and decisions of the presidents, the motivations of the Military Industrial Complex or the creation and stockpiling of arms, please take a moment today to remember the individuals who enlist to serve.

I flew back from Atlanta with a young lady who serves in our Army as a journalist. She has spent a year over in Afghanistan and in 5 hours of flight, it became clear she has a commitment to doing her duty.  She is smart, open, honest, dedicated, and concerned.  I learned a lot from her.  Her family has all served for generations.  She was on her way home this weekend to visit them.   They had not seen her in over a year.  Her husband is still over there.

As they say in the south: I appreciate them.

My dad is interred in Stanislaus National Cemetery. He was a Marine.  I appreciate him too.

 

Here are a couple of songs and videos to help with the memories.

Louie Armstrong in an amazing version of “When the Saints go Marching In”

http://www.youtube.com/watch?v=wyLjbMBpGDA

Here is “War” sang by Edwin Starr of Rush Hour

http://www.youtube.com/watch?v=Cv5BYEOQYLo

How about Steve Windwood doing his version of “Why Can”t We Live Together”—though it is more about Civil Issues than War issues, it still rings right today.

http://www.youtube.com/watch?v=dEkpGhmIC_U

Maniacal for Monarchy

A while back I changed my blog handle from the Duane Eels appointed “Warranty King” to the self-appointed “Warranty Dude”.  Those that know me know there is a funny story behind that which included the line, “Dude, What is your problem?”  That story ended and the rest of my professional life began. 

 

In watching the huge interest in the Monarchy over on Britain, maybe I should change my nick name back to Warranty King.  Something about all that Royalty.  The King’s Speech, the Royal Wedding, the Hot Princess Kate….Royalty sure has its privileges…..

 

The Warranty King or the Warranty Dude?

 

I’ll stick with the Warranty Dude. That way I will always remember to be humble and that I must earn your interest and support.  This blog alone is pushing it.

 

Next Month’s Blogs back to focus on Warranty Lessons through Song.

 

Sing you soon.

Poetry WoMan

Many of you that read my blog know that every now and then I run a month of blogs with subjects that tie into songs to help drive the point home.  Though I never used her music as a lesson, Phoebe Snow passed away this week. She was an amazing woman that devoted her life to raising her child that had some severe challenges, which surely made Phoebe less available to share her voice and her lessons with us. She had her priorities right.  Phoebe was an inspiration.  She made “things all right”.

 

“Poetry Man” was her “identifying” song.  Though melancholy in its message and tone it is sheer beauty in music.  Here are a couple of versions from You Tube.

 

Have a look:  http://www.youtube.com/watch?v=7OxTVxGhHFM

 

Have a listen:  http://www.youtube.com/watch?v=n5AaNLyFpoI&feature=fvsr

How Does Lack of Parts Availability Affect Our Industry, Our Customers?

I met with a the president of a consumer electronics service center this week.  We go back quite a few years.  He is the member of the PSOCA http://www.psoca.org/.  This group of servicers are comprised of a core of professional business people that are the folks you call when your flat panel shuts off in the middle of your bowl game, or when you washing machine quits draining or your computer just won’t compute, (Captain---this does not compute).  Our Scotties!  Those unsung heroes of customer service.

 

• They can make or break your day.
• They can make or break your opinion of the retailer.
• They can make or break your opinion of the warranty company.
• They can make or break your opinion of the brand!

 

There appears to be a serious issue going on. Besides the challenge of being reimbursed rates that they can afford to work for instead of “allowed rates” that may be under the cost of doing the repair, a new wrinkle is becoming prominent.

 

The lack of parts.

 

If a customer wants their flat panel fixed, technically this can happen, but realistically it cannot if parts are not available.  This means when you call the service center, you will either be told over the phone, “yes I can fix it if I could get parts, but I would rather not charge you a trip charge because I cannot get the parts”, or you can be told,” sure I’ll come out, and charge you a trip charge and a diagnosis fee”.  IN that case you have the indication that it can be fixed only to find out that the diagnosis needs “unavailable” parts to fix it.

 

According to my source, this may be by design.  It forces the customer to buy a new unit.  Possibly these manufacturers don’t make parts available by design. That is bad mojo.  That costs the customer more.  It costs the extended warranty companies to pay for replacements instead of repairs, (driving up loss ratios). It costs honest service centers work and revenue. It puts our industry at risk in many ways.

 

I always thought there was a requirement to make parts available for a minimum number of years.

 

I am going to ask around and see how widespread this is.

Back to Warranty Wise--Why Can't We Be Friends

While taking a bit of time off, I gave some consideration to where I want to take this blog, what topics I should research and write about.  My focus the last year or two has been primarily on how to drive your ESP programs….The overall Strategies, How to Execute and what Controls need to be put in place.

 

Recently I was accused by one of my TPA/Insurance clients of whom I share one of their retail clients of creating an adversarial relationship.  You can see by the topic of my last blog, http://warrantyconcepts.typepad.com/wise/2011/03/covered-or-not-someone-will-pay.html that I am sensitive to the FACT that all parties will be hurt if everyone does not work together to insure that the consumer experience is excellent.  No I do not want underwriters to lose money, but I will continue to make a stand that TPA’s are custodians of the Retailers’ and Manufacturers’ money and consumers, and they earn that money by helping those parties deliver better customer service. If there are Loss Ratio issues, putting serious controls, or saying no, in the short term may be necessary, but as a long term consumer policy is dangerous.  Saying no, or taking too long to authorize claims, can create a bad reputation and reputations matter.

 

This coming year I will continue to focus on sales strategies with a leaning towards how that translates to consumer experience. You already have www.warrantyweek.com to keep you up to date on figures and analysis from an industry reporting point of view.  You have the http://www.warrantyconference.com/ conference that also focuses on “the industry”.  Numerous other trades such as www.twice.com or www.dealerscope.com will also keep you abreast of our industry.

 

Sales and Consumer Experience.  Those should keep my busy.

 

See you out there!

 

By the way, back to the topic of the retailer, TPA and consumer all getting the most out of an Extended Service Program, it’s all about getting along.  Take a look at this video by WAR I found on You Tube.

 

http://www.youtube.com/watch?v=W5FfJ89rGPc