According to Service Roundtable, its extended warranty program differs from other programs in three ways. First, it includes a rebate based on usage that offers savings to contractors, says the organization. Second, the extended warranty includes a requirement for annual maintenance. If a system has not been maintained, the homeowner must pay a deductible direct to the contractor. Contractors can waive the deductible if the homeowner buys a service agreement or keeps it, making the warranty work more profitable. Third, all forms are filed via the Internet, providing the paperwork savings and efficiency that allow the offer of a contractor rebate.
Contractors set the labor rate, which determines warranty pricing. The pricing is the same as contractors would pay if they purchased a similar type of warranty through other sources, says Service Roundtable.
The Contractor Service Solution is administered by Equiguard, a well-known provider of third-party extended warranties. Equiguard is also providing Service Roundtable members with an e-mail hotline for quick answers to any questions.
"We set out to create a program that saves money for contractors. All of the savings is passed directly to the contractors," said Service Roundtable CEO Matt Michel. "It's one more benefit of membership in the Service Roundtable. If a contractor purchases a moderate amount of extended warranties, the rebates will easily exceed the membership costs of the Service Roundtable."
The Contractor Service Solution is available exclusively to members of the Service Roundtable, a private contractor group serving the HVAC and plumbing industries. For more information, visit www.serviceroundtable.com.
Publication date: 05/24/2004