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is this warrenty a good one?


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Hello my friends

so i just started the business of running and selling beverage vending machines.

i am new so i need guidance when it comes to setting warrenty guidelines.

i will tell you what i am thinking of setting and please correct me:

1- one year warrenty of manufacturing defects, which means i shall replace the parts, and it is rare to happen for a new machine right?.

2- two years of providing original spare parts at cost price only (no profit for me) that are not associated with manufacturing defects.

3- i purchased the payment devices seperatly and then installed them on the machines,so i shall mention their company name and their warranty conditions and contact numbers, nothing to do with me. 

What do you think? Am i missing something?

any extra tip would be appreciated

kindest regards.

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We've found that even with new equipment we've had some need of repairs.  We have experienced a higher rate of repair with refrigerated equipment than with regular, ambient temperature snack machines. 

What brand of machines will you be selling?  What sort of parts will be covered in the 2nd year? 

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I will be selling a European brand (i am not in the US). 

It is refrigerated. What is the common warrenty on the compressor?

i dont know yet what parts to be covered in the 2nd year. I thought one year would be enough to discover any manufacturing defects and thats it, the rest (spare parts from usage) would be paid for at cost price for 2 years, and then for an extra fee.

also i will provide support (how to operate the machine) throughout the life of it, maybe first 2 years free and then for a fee per visit, what do you think? I am a real newbie to this and would appreciate any tip. 

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How is it that you don't even know what warranties are offered by the manufacturers of the equipment you are selling?  If you don't have any experience in the distribution business don't you think you should get some before you bankrupt yourself?  There is no substitute for experience and it will help you avoid pitfalls and failure if you can learn from another company's mistakes or from their best practices.  Being a distributor requires a ton of cash up front for your beginning machine inventory and for the parts you need to stock for warranties and for sales.  Since you don't sound like you even know how to repair a machine you will need to employ a repairman who can repair refrigeration as well.  This ideally would be your own employee, not some local repairman.  You must be able to trust him and stand behind his work.  You can use him to prep machines for sale and to deliver them as well so he shouldn't be sitting around wasting your money as long as you can truly sell a bunch of machines.

We have no idea what warranty customs are common in your area but in the US, if you are distributing another company's machines, you must offer their factory parts warranty to your buyers and then, as the distributor, you will typically be required by the manufacturer to offer free repair labor for 90 days.  After that you may charge for labor but not for parts until the factory parts warranty runs out.  Then all parts are at retail or your chosen price plus labor.  

The distribution business is tough and there are very few of them left in the US.  There are too many manufacturers that will sell direct to customers and that killed the distributors.  The only meaningful ones left in the US are also selling something else like amusement games and they are large in either parts sales or repair service or both.

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