Extended Warranties Increase Profit When Selling TVs

Let’s be real—selling TVs in 2024 isn’t just about screen size or HDR. If you're a retailer, reseller, or even a savvy home tech blogger giving honest advice, there's one underrated profit booster that still works like magic: extended warranties. Yep, those add-ons many customers roll their eyes at? They’re quietly padding margins and building trust at the same time.

Why Extended Warranties = Hidden Goldmine

Think about it: the average 65-inch 4K TV sells for around $600–$900. But with razor-thin hardware margins (often under 10%), how do stores actually make money? Spoiler: not from the TV itself. It’s the accessories—and especially protection plans—that drive real profit.

Data from Retail Dive shows that extended warranty attach rates average just 18% across electronics, but when sold effectively, they can boost per-unit profit by up to 300%. That’s not a typo.

Real Numbers: How Warranties Stack Up

Check out this breakdown of a typical mid-range TV sale:

See that? The extended warranty costs pennies to provide but adds more profit than the TV itself. And since most claims aren’t filed (industry data suggests only ~25% of plans are used), it’s low-risk revenue.

But Don’t Just Sell—Educate

Here’s where most sellers fail: they pitch warranties like a robot at checkout. Instead, position them as peace of mind. Example script:

“These OLED screens are incredible—but also fragile. One accidental bump during cleaning, and you’re looking at a $400 repair. For less than $6 a month over two years, the plan covers accidental damage, power surges, even tech support. I’ve seen it save customers hundreds.”

Pro Tips to Boost Attach Rates

• Bundle it subtly: Offer a “Total Protection Pack” instead of a standalone warranty.
• Train your team: Staff should explain benefits in simple terms, not read a script.
• Use social proof: “3 out of 5 buyers choose protection” increases conversions.

In a world of cutthroat pricing, extended warranties are one of the last legal ways to increase profit without raising sticker prices. Whether you're a retailer or advising buyers, understanding this dynamic gives you serious edge.