Want to know BestBuy’s best kept secret? Big profits don’t come from just product sales

In the consumer electronics market, profit margins average just 4-8% despite the best supply chains.

While small and medium-sized retailers focus on cutting costs and increasing operational efficiencies that’s not really where profits grow. Typically, every business has to focus on three critical challenges:

1. How can you increase profits per sale without raising prices?
2. How can you enhance customer experience without extra operational costs?  
3.How can you differentiate from big-box competitors?

The answer that major retailers already know: extended warranties and product protection plans.

Here’s context- more than 50% of Best Buy’s net profits come from selling extended warranties. This powerful statistic shows how small to medium-sized businesses (SMBs) have been at a disadvantage.

The problem is that given their economic and operational constraints, insurance/warranty providers only worked with large retailers, leaving SMBs without this crucial profit driver.  

SureBright changes that equation. By connecting merchants, insurance partners and customers in a seamless process, SureBright levels the playing field for SMB retailers by simplifying the process of offering warranties.

Hundreds of consumer electronics sellers, including Swiftronics, Blaupunkt, Speech Tablet, and Communication Gear Supply, have partnered with us to experience the difference first-hand. Rather than focusing on just one company, here’s an industry-wide case study that covers the business transition across merchants.

The challenge: market realities for SMB electronics retailers

Before implementing extended warranties, our retail merchants faced identical challenges:

• Product Profit margins: 3-7% (vs. 15%+ for large competitors)
• Customer retention: Industry average of 35-45%
• Average order value: varies by products, but $40-65 below big-box retailers
• Product protection: Limited to manufacturer's 3-12 month coverage

The impact: consistent increase in business numbers across retailers

Once protection plans were offered to the customer, our merchant partners observed significant benefits, including-

• Increased sales: Partners saw an average warranty conversion rate of 28.2%, with peaks up to 58%. This boosted net profits by an average of 18.4% at no additional cost. One partner was even able to lower retail prices, attracting more sales.
• Enhanced trust: The extended warranty program boosted consumer confidence, reinforcing retailers' reputations for quality and durability. This led to improved customer conversions and higher average order values (AOVs) by up to 15%.
• Customer loyalty: Positive reception of the warranties created loyal customers. Return purchases surged while negative reviews decreased, solidifying retailers' positions as trustworthy and reliable brands.

But how did we make this happen?

The approach: comprehensive protection plans that seamlessly integrate across all sales channels

Working directly with our retail partners, we developed a warranty program specifically designed for smaller operations. Here's what we implemented:

Multi-Year Protection Coverage

Standard manufacturer warranty: 12 months for new products, 90 days for refurbished ones. Coverage includes only parts.
‍SureBright protection plans: Up to 5 years comprehensive coverage including:

• Accidental damage (drops, liquid spills, cracks)
• Normal wear and tear
• Labor and parts for all repairs
• Full replacement for major failures

Transparent Purchase Experience

Customers receive immediate clarity about protection benefits:

• Upfront communication about warranty plans without any friction in the customer journey
• Digital warranty certificate sent in real-time
• Plain-language coverage explanations
• 24/7 claim portal access with real-time status updates

Zero-friction integration

Technical implementation completed in under 10 minutes across all channels:

• POS system integration for in-store sales
• E-commerce platform widgets for online stores
• Marketplace compatibility (Amazon, eBay, etc.)
• Mobile-responsive designs for all interfaces

Claims processing handled entirely by SureBright - retailers focus on selling, we handle operations.

Conclusion

By offering extended warranties, retailers don't just sell electronics; they sell reliability and peace of mind. This strategy has significantly increased net profits, with our partners seeing an average profit boost up to 20%. Partnering with SureBright takes just 15 minutes but can profoundly impact your business.

Next Steps

SureBright currently serves 60+ electronics categories including:

• Smartphones and tablets
• Laptops and computers
• Gaming equipment
• Home appliances
• Audio/video equipment
• Smart home devices

Ready to increase your profits without raising prices?

Contact Us

Email: hello@surebright.com
Book consultation: SureBright consultation link

Free implementation support included. No upfront costs. Expect results within 48 hours.