Extended, all-parts warranties hit distributor profit picture

Extended, all-parts warranties could devastate heating/air-conditioning equipment distributors by forcing them to tie up their cash reserves in parts, according to consultant Scott McKinnon. He explained that 5- or 10-year warranties will make it impossible for distributors to use profits generated from out-of-warranty parts sales to offset the costs of supplying warranty parts.
WILMINGTON, N.C.--Extended, all-parts warranties on hvac equipment can have a 'devastating' effect on distributors, says consultant Scott McKinnon. The problem is that such warranties eat up the distributor's cash reserves. [...]