As a contractor, how do you show customers your commitment to quality work and durability? While the initial results of the project speak for themselves, it is also wise to offer warranty coverage in case anything goes wrong. Contractor warranties not only guarantee the quality of work, but they also provide an opportunity to build an ongoing relationship with each customer.

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Why Customers Appreciate Warranties

When you present a fair warranty to your customers, it helps build trust and offers a “win-win” opportunity for both your contracting business and the client. Customers appreciate the guarantee and feel confident knowing that you will stand behind the installation.

  • Lower Customer Hesitation: If a homeowner is planning to spend hundreds or thousands of dollars on a home improvement project, they will often be cautious about moving forward without a guarantee on the work. Good warranty coverage provides peace of mind and reduces the hesitation potential customers might be experiencing.
  • Success of the Project: It is common for customers to look for contractors who offer warranties because warranty coverage often influences the success of the project. When a contractor is willing to correct potential issues after completion, then it ensures long-term durability when the work is done.

Contractor Warranties vs. Manufacturer’s Warranties

Many customers do not understand there are different types of warranties offered. It is important to explain the differences between manufacturer and contractor warranty coverage.

The products you are using for the installation often come with manufacturer’s warranties— the failure of the products is backed by a promise from the manufacturer. Some contractors offer these manufacturer’s warranties without any additional warranty for installation.

If you choose to offer contractor warranties, it is essential to provide warranty coverage in written format. This clear communication gives all parties a clear understanding of the terms of coverage. List the things that fall within the warranty coverage, as well as the timeline that you will honor the warranty.

How Warranties Will Benefit Your Business

While contractor warranties provide peace of mind to the customers, these warranties can also be beneficial to your contracting business as well. 

  • Differentiate from the Competition: As a service provider, your services can stand out in the industry by offering additional contractor warranties. These installation warranties cover everything that happens after the materials arrive on the job site. It is best to design the warranties based on manufacturer guidelines, ensuring that all specifications are met to minimize the risk of voiding the manufacturer’s warranty.
  • Close the Sale: If a customer is deliberating the services, sometimes you can leverage warranty coverage to close the sale. Often, services are comparable in price and quality, which means that contractor warranties can be the deciding point when customers are comparing their options.
  • State Laws: Although the specific regulations vary from state to state, most states require contractors to stand behind their work. Contractors must provide this warranty coverage against errors in the installation and scope of work on the project. If a customer finds an installation defect, then the laws protect the customer since the contractor is under a legal obligation to fix the problem. Contractor warranties show that you are complying with state laws.
  • Ongoing Customer Relationships: The best way to build your business is by developing customer relationships that last for years. A good warranty shows your commitment to quality, which in turn increases the likelihood of future work when the customer needs services again. Plus, establishing customer-contractor trust means that there is a higher likelihood of the person referring their friends and family to your services.
  • Protect Your Reputation: Even though you are diligent in providing your best services on every project, sometimes mistakes happen. Even one negative review could be damaging to your business reputation, which is why warranties should be part of your offering. If something goes wrong, then customers can get the problem fixed through the warranty instead of turning to leave negative reviews about the services.

Ultimately, the most effective warranties set clear expectations upfront and give customers a great experience. At the same time, contractor warranties are important for helping to maintain your reputation and build your business in the future.

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