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How merchants are quietly building profit margins with extended warranties
July 2, 2025

How merchants are quietly building profit margins with extended warranties

The smart money moves to protection

Something interesting happened when ProSource—America’s largest consumer electronics buying group—sat down to choose a product protection partner for their 575 retailers. They didn’t just pick the cheapest option or the one with the flashiest presentation. They chose SureBright.

Why does this matter? Because ProSource represents the kind of retailers who understand that survival in today’s market isn’t about cutting costs anymore. It’s about finding smarter ways to grow revenue. And warranties, it turns out, might be one of the smartest moves they’ve made.

The protection paradox

Here’s what most people don’t realize about warranties: they solve problems for everyone involved, but in completely different ways.

Customers get something obvious—peace of mind. When someone drops their new tablet or spills coffee on their laptop, a good warranty turns a disaster into a minor inconvenience. The anxiety of “what if something breaks” disappears at checkout, making the purchase decision easier.

But for merchants, warranties solve a more complex puzzle. They create a revenue stream that doesn’t depend on moving more inventory or negotiating better wholesale prices. More importantly, they level the playing field with big-box retailers who’ve had these tools for years.

Think about it: when a customer needs warranty service and gets exceptional support, they don’t just buy from you again—they tell other people about you. That’s marketing that money can’t buy.

The numbers tell a story

SureBright’s impact on business metrics reveals something compelling. Merchants typically see their average order values increase by up to 14%, while warranty attachment rates average 20.3%.

But here’s the part that really matters: this isn’t theoretical revenue that might materialize someday. It’s immediate. The platform takes about ten minutes to implement, and merchants start seeing results from day one.

What makes this particularly clever is how SureBright handles the operational side. They manage claims, customer support, and all the regulatory complexity that makes most retailers avoid warranties in the first place. So merchants get the revenue without the headaches.

Merchants offering warranties win the long game

The warranty business used to require significant upfront investment and technical expertise. SureBright changed that with a simple insight: what if the technology was smart enough to handle the complexity automatically?

Their AI system adjusts coverage and pricing as inventory changes, whether you’re selling five products or five million. The zero-upfront-cost model means even small retailers can access enterprise-level warranty capabilities.

Canadian merchants find this particularly valuable, since they’re often competing against larger chains with deeper pockets. SureBright gives them the same tools, without the same costs.

As CEO Manish Chauhan puts it, the goal is letting merchants “focus on what matters most: growing your business.” It’s a refreshingly straightforward approach in an industry known for complicated solutions.

What growth really looks like

The merchants who implement SureBright don’t just see a one-time revenue bump. They experience a shift in customer relationships.

Warranty customers become more loyal customers. They refer more friends. They’re more likely to come back for their next purchase. The warranty becomes a bridge to a longer-term relationship, rather than just a transaction add-on.

For merchant networks, the collective impact creates interesting dynamics. Individual stores maintain their independence and local character, while benefiting from group-level technology and support. It’s the kind of arrangement that makes everyone stronger without making anyone generic.

Test your curiosity

Here’s a question worth asking: how much additional revenue could warranties actually generate for your specific business?

It’s not a hypothetical question anymore. SureBright created an ROI calculator that factors in your current sales volume, average order values, and product mix to show potential warranty revenue. No sales calls, no lengthy demos—just numbers based on your actual business.

The calculator takes about two minutes to complete and shows projections based on real merchant data. Whether you’re running a single location or managing a network of stores, the tool provides a realistic preview of what warranty revenue might look like for your specific situation.

For merchants who’ve been curious about warranties but unsure about the actual financial impact, it’s a simple way to move from wondering to knowing.

Curious about your warranty revenue potential? Try SureBright’s ROI calculator to see what additional profit margins might look like for your business.

Originally published on- CanadianSME

CanadainSME covered SureBright in their business magazine
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