Tech Data Offers Extended Warranty Packages

The Clearwater, Fla.-based distributor has signed a deal with Warranty Corporation of America to provide the warranties, which also allow solution providers to make money selling the coverage and servicing the claims, said Barb Miller, director of technical services at Tech Data.

"It allows the reseller to extend their own service arm to include service contracts, on-site plans, replacement plans, express repair," Miller said. "If you can't repair it, the insurance company that backs up the plan allows for a replacement as well."

Tech Data made the announcement at its TechSelect conference, held in Rancho Mirage, Calif., for 151 solution provider members.

"If I'm a reseller and I don't want to do the work, the warranty company will send someone else," Miller said. "It also allows the reseller to double-dip. He can sell the warranty, make some money off that and service it as well."

Robert Castro, president of American Data Computer Products, said the program would come in handy when the Tampa, Fla.-based solution provider needs a service request outside his coverage area.

"Government prime contractors are some of our biggest customers. They order a lot of products that go to facilities nationwide. We've had to turn down opportunities that Lockheed-Martin wanted us to do because we didn't have that reach. Those kinds of things don't come around every day," Castro said.

The extended warranty packages will be a valuable alternative to manufacturers' plans, he said.

"The greatest advantage is that it's an umbrella for a number of products vs. for a particular brand," Castro said.