“Extended warranty? How can I lose?” This is the rhetorical question uttered by Homer Simpson after he has a powder blue crayon rammed up his nose and into his brain, insinuating only those of limited intelligence invest in warranties. It’s true that warranties have a bad rap, but this belief tends to be driven by consumers buying consumer-level products. Given the new financial year is nearly upon us, you are probably configuring your IT budget. While they may cost a little bit extra, extended commercial-grade warranties are a worthwhile business investment to protect against loss and lower the risks against device purchasing.
Tech Manufacturers Paid Out $4.98 Billion Last Year In The US
There is no question that companies are getting value from warranties. Even though the percentage of claims is rather low considering how many warranties are actually purchased, the amount paid out just last year on commercial warranties was nearly 5 billion dollars in the United States alone. According to a report issued by Microsoft, for every 100 devices purchased with warranty coverage, around 1.5 of them make a claim against the policy. For companies that are buying fleets of devices, they can easily use this figure to predict what the replacement cost would be for 1.5% of their devices and compare that to the cost of keeping them all under extended warranties. A manufacturer warranty from a trusted technology provider is also preferable, as the best people to repair your devices are the same ones that are responsible for building them.
Speed Up Repairs and Replacements
Be sure that the repair turnaround time is clearly outlined in your warranty, particularly if hardware items such as your local server are vital for business continuity. Without access to the same day or same week service warranty offered by the manufacturers, you may be waiting weeks for repair. If the server requires replacement, it will probably take two to three weeks for it to be delivered and configured.
A warranty will also protect against ‘dead on arrival’ or DOA. This is one of the most frustrating and unfortunately common experiences in technology purchases for businesses. This means your device is in a non-functional state immediately after unboxing. Even though most DOA’s will be covered under a basic return policy, an additional warranty may help to ensure that these devices can be repaired as quickly as possible. A warranty with a service guarantee timeframe is essential, otherwise, you could be waiting weeks or even months for repairs and replacements. Extended warranties can also better protect your remote work devices. This is of particular importance now that employees are working remotely more often, and a higher level of device transport has increased the risk of damage in transit.
Be careful not to void your warranty
It’s no secret that technology manufacturers would rather not pay out claims on their warranties if they don’t have to. This is why you need to make sure you don’t accidentally void your warranty. Consider the fine print carefully and check for disclaimers around voiding warranties. This could include performing maintenance such as hardware upgrades or battery replacements. For desktop devices, it may even include removing them from your nominated business premises. Some warranties can be voided as soon as the side panel is opened by anyone other than an authorised repairer, so even if you have tech experts on staff, think twice before picking up that micro screwdriver.
Trust an authorised reseller
If you are upgrading or purchasing new devices in the new financial year, trust Evologic as your authorised seller of Apple and Microsoft products with reliable warranties and service agreements. As part of our IT support services in Geelong, we can advise you on the devices that will best suit your business needs, so get in touch with our sales team here or call 1800 887 778.