2008 Trane Product Catalog - Blue Phoenix Mechanical

Optional Extended Warranty BenefitsExample:Assumptions:• Unit is 4 years old and an Evaporator Coil must be replaced• Evaporator Coil is an in-warranty part that would normally cost $500 if purchased• Dealer has $70/hr. labor rate (time and material, not flat rate)• 7 lbs. of R410A needed for repair (dealer cost is $11/lb.)Consumer has NoConsumer has 10-Yr. P&L, Lbr. Opt. 3 Optional Extended Warranty DifferenceEW Pays DealerConsumer Pays DealerLabor Travel (2 hrs.) $ 140.00 $ 140.00 $ -Diagnostic (.5 hrs.) $ 35.00 $ 35.00 $ -Repair (4.5 hrs.) $ 315.00 $ 315.00 $ -Total $ 490.00 $ 490.00 $ -Parts Coil (.5 x normal cost) $ 250.00 $ - (in-warranty part) $ 250.00R410A(2 x #lbs. x dealer cost) $ 154.00 $ 154.00 $ -Total $ 894.00 $ 644.00 $ 250.00Profit on Parts $ 327.00 $ 77.00 $ 250.00• In the above example, even with a 10-year Limited Warranty on parts, the consumer still paid $644 for a coil replacement, andyou made only $77 in profit on parts. With the Optional Extended Warranty, the consumer pays nothing for the repair and youmade an additional $250 in profit on partsSelling Story:• The Optional Extended Warranty should be offered at time of sale (can be included with financing)• Use the Optional Extended Warranty Sales Brochure, Pub. No. 26-1016-11 and the consumer benefits on the reverse side• Point out that Limited Warranty does not cover refrigerant or labor• If the Optional Extended Warranty is “included” in the total proposal, it is much easier to sell• If you are in a “regulated” state, you must provide the actual purchase price (not to be less than your actual cost) on the OptionalExtended Warranty Application. This amount will appear on the consumer’s agreement (see your Extended Warranty Handbook formore information on selling Optional Extended Warranties in “regulated” states)Great care has been taken to ensure the accuracy of the information in the Extended Warranty section of the 2008 Trane Product Catalog.However, the information in the Trane Optional Extended Warranty Handbook (Publication No. 26-1019) supersedes all information contained herein.© Trane 2007WA – 44 Effective date: January 1, 2008