How Offering A Premium Support Service Can Increase Your Profits And Margins
You’ve probably bought electronics before and been offered the purchase an additional warranty. Or maybe you’ve purchased furniture before and been offered a white glove service to deliver and setup your new couch.
These are all examples of premium support services that can have very large profit margins, so even if only a smaller percentage of customers take you up on them, they can add a lot to your bottom line.
Some of these premium support services can be at little to no cost to you. For instance, one business we’ve seen had a warranty offer where you could get free replacement charger cables forever on your phone, if they ever fail, for a small one time extra fee as long as you just cover the small shipping and handling fee. However, these cables have such huge margins anyway that the small S&H fee literally covered the cost of the cables and the shipping. The “warranty” that was sold was essentially 100% pure profit, despite how it would appear to be an