| Hard
benefits |
Example
based on £1m of warranty payments a year |
Savings |
| Faster rectification of
faults |
5% reduction in warranty
payments |
£50,000 |
| Tighter cost control |
1% saving by reduce over
payment |
£10,000 |
| Reduced working capital |
1% of sales payments withheld
due warranty disputes. Costs based 6% interest rate |
£30,000 |
| Warranty staff savings |
25% reduction in Warranty
claim processing time. Staff cost saving based on 2
staff at £25K each. |
£12,500 |
| Total savings per
year |
|
£102,500 |
| Soft
benefits |
|
|
| Ease of management |
Decline in intervention
by senior management in claims processing |
? |
Improved customer
satisfaction |
Claims were settled promptly
and reliability issues actioned |
? |
| Repeat business |
Sales growth average of
over 20% per year 8 years |
? |
| These figures are illustrative
based on conservative estimates of a real case stud. |
