When products or services are sold, it’s common to have a warranty in place. It guarantees to replace or fix a faulty product, or to redo a service, within a certain time frame.
The warranty is an assurance that the product or service will work as intended.
For example, if you buy a washing machine, it might come with a five-year warranty, and what that means is that if it breaks within that time period, through no fault of your own, you can get it repaired or replaced.
Once the warranty period ends, the customer is responsible for any damages.
What kind of warranty should I give my customers?
How long a warranty you should give your customers really depends on what it is you’re selling, and what kind of lifetime that product or service has.
Here are some factors that might influence your policy:
- Whether the item is expected to have a long or short lifetime. If it’s a coffee machine, maybe it’s enough to provide a two-year warranty. If it’s a car, you might need to provide a five-year warranty.
- The price. Customers might require some more convincing to purchase more expensive items and services, so a good warranty policy can go a long way towards sealing the deal.
- The wear and tear of the item. If you’re selling items that are frequently used or under a lot of strain, for example running shoes, you might have a shorter warranty, and you might limit it to defects in materials or workmanship, not damage from regular use.
Warranties are usually included in contracts or on invoices.
Remember terms and conditions
Warranties usually include specific terms and conditions, besides a fixed timeline.
For example, the customer usually has to provide a receipt or other proof of purchase. You might also have a clause about reviewing the item before the repair or replacement can be approved, to see whether the issue could have been caused by, for example, misuse.
You can also specify exactly what kind of issues are covered, for example defective parts, and you can require the customer to bring the product to an authorized repair shop, or to ship it back to you, although you can of course cover the costs of this.