Do you know how risky expired warranties are?
One of the most common IT mistakes business owners make is letting their hardware warranties lapse. It’s a mistake which is totally avoidable. Ideally you have someone in your team responsible for managing all the warranties for extensions or upgrades whilst you are busy running your business.
In an ideal world, when a warranty expires, the business is presumed to be ready to upgrade to newer hardware. In reality though, this is not always the case especially for businesses with limited financial resources.
However, when you don’t have a system in place to monitor all your warranties, one seemingly small mistake of forgetting a warranty expiration date can lead to a costly one.
What warranties protect you against
Let’s say you’ve bought some computer hardware. A warranty typically guarantees that the product is free from manufacturing defects and will perform according to its technical specifications. Should you encounter any problems, the manufacturer will quickly fix the problem, either by providing a replacement, offer a refund, or even recourse to remedial support.
Without a warranty, you will be forced to upgrade regardless of if you are ready or not.
The risks of lapsed warranties
It’s important to be aware that without a system or someone managing your hardware warranties, your business is at risk of having serious problems such as:
- Operational/business disruption – When a crucial hardware that’s no longer under warranty fails or suddenly stops working, it will disrupt the operations of your business while you organise a replacement/repair.
- Unexpected extra cost – If a manufacturer’s warranty expires and the hardware fails, you will have no choice but to replace/repair the hardware, which won’t be budgeted for.
- Difficulty finding replacement parts at a reasonable price – Finding compatible replacement parts at reasonable prices is time-consuming especially if the part you need is no longer being manufactured or is not readily available.
The warranty which comes with a hardware purchase typically lasts anywhere from 1 to 5 years. Most manufacturers offer extended warranties for an additional fee. If you plan to invest in hardware and use it for longer than the supplied warranty period, an extended warranty is a good idea. However, keep in mind that extended warranties may have terms and conditions which may not be similar to the original warranty. Make sure that you read the fine print before you pay any extra.
Another aspect worth considering is your long-term plan. In a time when technology is developing faster and faster, it’s not always wise to continue working with technology you bought several years ago. At some point, your IT needs to keep up with the rest of the world.
Keeping track of warranties
If your plan is to keep your hardware covered by warranty until you are ready to upgrade, then we suggest you assign someone from your team to do the monitoring of expiry dates for you. Remember that as your business grows, you’ll be making more IT investments. Monitoring the warranties may soon become an onerous and difficult task.
Another option is to outsource warranty management to an expert. Many companies today outsource their warranty management as part of a complete Managed IT service. These providers have the necessary tools and processes that can help you improve warranty turnaround time and increase claim accuracy, seamlessly integrate tools into your existing IT infrastructure, and more.
By outsourcing warranty management, you can focus your resources on your core business whilst having peace of mind that all your warranties are managed professionally.
Make an important business decision today. Contact us to know more about outsourced warranty management.