Tabellab
Business & Operations Intermediate

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.

8 lessons 8 labs 2.2 h Certificate

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

  1. Failure Curves: Monthly Rates, Survival and Cumulative FailureLab15 min Pro
  2. Expected Claims per Sales Cohort and the Claims CalendarLab16 min Pro
  3. Cost per Claim and the Repair-or-Replace RuleLab16 min Pro
  4. Standard Warranty Cost per Unit Sold and as % of RevenueLab15 min Pro
  5. Pricing an Extended Warranty: Expected Cost, Margin, Price Points and Loss RatioLab16 min Pro
  6. Attach Rates, Plan Revenue and Contribution by ChannelLab16 min Pro
  7. Service Contract P&L: Earned Revenue, Pro-Rata Refunds and Claims by YearLab18 min Pro
  8. Warranty Dashboard: Claims vs Expectation, Top Failing Product and a Trend ChartLab17 min Pro