warranty costs


Benefits


Today's customers, both industrial and consumer, have become much more demanding about product quality and reliability than they were a few years ago. Why? Because they know that they can get it!

The quality revolution, global competition, and the technologies of computers and rapid communications have joined to enable the design and manufacture of products that perform well for long periods of time. Customers have gotten used to the new standards and are merciless on manufacturers of products they feel do not measure up. These customers:

  • Call customer service people, which costs the manufacturer money. (Many manufacturers have reacted by installing automated - not human - phone and e-mail customer service interfaces - which often just anger the customer more.)
  • Return their products to the retail store or to the manufacturer. (And, they are not interested in being told the product is out of warranty - they want satisfaction. The refunds, freight, and handling expenses can be huge. Retailers may decline to carry such products.)
  • Tell their friends and business associates about their experiences, especially those that are exceptionally good or bad.
failure analysis

So, what are the Benefits from trouble-free products? Primarily, it is loyal customers and increased sales. Secondarily, it is lower cost and less hassle from products you have already sold and shipped, freeing resources to be invested for the future rather than being used to correct past mistakes.







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