How often do you pursue your warranty reimbursement opportunities? Do you sometimes think it’s faster or easier to eat the cost? While that might be more convenient, you’re likely missing out on more money than you think.
Here are four reasons to collect on all of your warranty reimbursements.
1. The cash will add up over time
The more warranties you utilize, the more cash you’ll save. Over time, this could amount to tens of thousands of dollars. When you want to save as much money as possible, there is no good reason to skip over reimbursements. However, you might not realize how easy it is and how much you can save when you use the right tools.
In one case study, a company with a medium-sized tractor fleet increased warranty reimbursement by 782% by using fleet management software. Prior to using the software, they relied on memory to get reimbursed, which meant they missed a lot of opportunities. They also struggled to organize all the information needed to file the reimbursement request. Opportunities were often missed, while submitted claims were sometimes rejected for not having the right information.
If you don’t think your warranty reimbursements are worth going after, it could be because you’re still using manual methods to track and submit claims. Once you start using software, you’ll see more chances to save, and you can see the big picture of how it will add up over time. For instance, getting $2,000 back per year adds up to $20,000 over the course of ten years.
2. Money is money
If someone walked up to you on the street and handed you a $100 bill with no strings attached, you probably wouldn’t refuse. If you’re ignoring warranty reimbursement opportunities, it’s like saying no to free money that you have every right to receive.
Money is money, whether it comes to you from a stranger on the street or by submitting a warranty claim. No matter the amount, passing on the opportunity to put more cash in your bank account doesn’t make sense.
3. It will put you in a conscious, intentional frame of mind
There are many reasons certain business owners become highly successful millionaires and billionaires. One trait they share is being intentional with money. Rich people care about saving money even if it’s just $50, not because they’re “penny-pinchers,” but because that level of awareness is how you save big in the long run. If you skip pursuing warranty reimbursements because they’re small, you’re probably losing money in other ways, too.
Get into the habit of saving money wherever you can and make sure you retrieve money you’re owed, no matter the amount. Start with warranties. This will train your mind to look for more ways to save and get reimbursed. This is a habit that will serve you in the long run because it will develop your awareness of opportunities and train you to be careful with even small amounts of money.
When you start saving money for your business, you’ll also transfer this habit to your personal life. Chances are, if you haven’t been pursuing warranty reimbursements for your business, you probably aren’t saving all the money you could in your personal life, either. Saving money will give you peace of mind and more funds to play with.
4. You’ve already paid for the money you’ll get back
You may not realize that getting reimbursed for a warrantable repair is technically not “free” money, despite appearances. When you bought your vehicle or piece of equipment under warranty, you actually paid a higher price that covers the warranty reimbursement. It’s just that the cost was rolled into the total purchase price. This is how manufacturers make sure they don’t lose money. It’s the same marketing trick used by retail companies that mark items up before marking them down to make the price look like it’s been lowered.
Since you already paid more for the product in the beginning, it makes sense to pursue your warranty claims to get that money back. You signed the service contract or received the warranty automatically with your purchase, and as long as the issue is covered, you are legally owed that money.
Every dollar is worth saving – don’t skip warranty reimbursement
Over time, getting reimbursed under warranties will add up to a significant dollar amount. Don’t just leave money on the table. Fill out the paperwork and submit claims for every opportunity you have to recover some cash. It won’t take long to see how much money you’ll save.
