Service Plan - Presence Among Retailers

Presence Among Retailers

Service plans are seen mainly in office stores and electronics retailers, largely because of perceived fragility of electronics hardware and insecurity over the use of refurbished product. Some items such as computers and sale items produce very little profit for retailers, so selling service plans and accessories is essential to profiting from the transaction (see Loss leader). In these cases, service plans are usually bundled with additional high-margin services, such as phone support, at reduced prices to add to the perceived value of purchasing them.

Some retailers that offer service plans include Sears (Master/Repair Protection Agreement/Merchandise Replacement Agreement), OfficeMax (MaxAssurance Warranty Plan), Best Buy (Geek Squad Protection), CompUSA (Technology Assurance Program), hhgregg, Office Depot (Performance Protection Plan), Radio Shack(Replacement Plan/ Repair Plan), Staples (Technical Support and Protection Plan/ Product Replacement Plan), Ritz Camera Centers (Extended Service Plan), Target (Extended Service Plan), Consumer Priority Service (Extended Service Plan) and Brand Source (Expert Protection).

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