Warranty & Service Contract Economics: Failure Curves, Claims per Unit Sold, Extended-Warranty Pricing, Attach Rates & Contract P&L
Run the numbers behind product warranties and paid service plans: failure rates by month in service, expected claims, cost per claim, extended-warranty prices, attach rates and whether the service book makes money, with every cell checked as you go.
One-time payment · lifetime access · lessons, labs, exam and certificate included · no subscription.
About this course
This course runs the warranty and service-plan numbers of a fictional appliance seller in a spreadsheet. You turn monthly failure rates into survival and cumulative failure with PRODUCT, build a claims calendar from sales cohorts with INDEX and MONTH, cost repairs and replacements with a repair-or-replace rule, measure standard warranty cost per unit and as a % of revenue, price extended warranties with a target margin, CEILING price points and loss ratios, summarise attach rates and contribution by channel with SUMIFS, calculate pro-rata refunds and a three-year plan P&L, and finish with a claims dashboard and a line chart.
Lessons
- Failure Curves: Monthly Rates, Survival and Cumulative Failure Pro
- Expected Claims per Sales Cohort and the Claims Calendar Pro
- Cost per Claim and the Repair-or-Replace Rule Pro
- Standard Warranty Cost per Unit Sold and as % of Revenue Pro
- Pricing an Extended Warranty: Expected Cost, Margin, Price Points and Loss Ratio Pro
- Attach Rates, Plan Revenue and Contribution by Channel Pro
- Service Contract P&L: Earned Revenue, Pro-Rata Refunds and Claims by Year Pro
- Warranty Dashboard: Claims vs Expectation, Top Failing Product and a Trend Chart Pro