Bedford, Texas - Warrantech Consumer Product Services (CPS) said it sold over 1.2 million extended warranties in 2009, representing a 70-percent increase in contract sales year over year.
The jump in unit sales of CE, appliance and furniture service contracts drove a 66-percent increase in gross revenue, resulting in a record year for the Warrentech Corp. division.
"In spite of a sagging economy, Warrantech set some aggressive goals for the year, and the CPS team redoubled their efforts, achieving phenomenal growth in sales and dealer base in 2009," said Warrantech CEO Joel San Antonio.
Specifically, Warrantech added approximately 1,800 dealers in 2009, giving the company 2,300 U.S. outlets as of Dec. 31. During this period, the CPS group more than tripled the number of retailers, manufacturers, and distributers selling the company's full line of service contract offerings.
"We pulled out all the stops," said Warrantech CPS president Sean Hicks. "Our ability to execute programs with our buying group partners was a primary driver behind this growth. Not only did we sign a record number of new retailers, but we also found innovative ways to help support our dealer base."
During 2009, Warrantech launched "Successful Selling," a monthly series of how-to flyers distributed to each of its 2,300 retail accounts that provides tips on creative ways to market service contracts.
In addition, the company continued to roll out enhancements to its WCPSOnline Internet reporting and processing system, which gives dealers instant, real-time access to streamlined sales and claims reports and provides automated repair orders. Another new reporting feature, dealer loss experience, analyzes a dealer's specific portfolio loss history and provides information to help minimize problem areas and maximize long-term profitability, the company said.