The service protection plan contracts to cover repairs to your equipment are not what you expect. There is no provision on the amount of time a repair can take. There is no provision to cover expenses for damage caused, loss of business or additional costs incurred.

The key is to buy from a local business that has consistently backed up their product and if it breaks or does not work appropriately in the first year they replace it. Most equipment is backed by a limited one year warranty.

Have a relationship with a local IT shop and equipment repair experts who not only can provide you with better discounts, but just may be that opportunity for raising money later. The more the business community knows about what you do the better they can support you. People network each day, warranty plans are paper in a file and do nothing to create value for your organization.

So when evaluating that piece of mind to purchase an additional warranty, think of putting that money into your maintenance, repair or equipment reserve. Think of the network of businesses with whom a relationship expands the value to your organization. These warranty plans make a lot of money for GE and other large investment companies. They do not do the repairs, everything is subcontracted and they have no responsibility for its quality.

People give to people, so tap your assets to make them work for you in developing more relationships in the business community.

This entry was posted on Tuesday, August 28th, 2007 at 12:01 am and is filed under Strategic Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.