NESDA News Releases
Whirlpool to Bill Servicers for Out of Warranty Referrals; Customers Expected to See Increased Cost
WEBWIRE – Tuesday, July 01, 2014
Fort Worth, TX – The Board of Directors of the National Electronics Service Dealers Association (NESDA) has become aware of a new policy that Whirlpool Corporation has implemented within their Independent service network, for those who service and repair Whirlpool major appliances. Whirlpool Corporation also distributes major appliances under several other brand names.
The policy states that Whirlpool will charge a fee to their Authorized Service Center (ASC) for out of warranty (COD) referrals dispatched through their call center. This referral fee is to be absorbed in the service center’s cost of doing business, which will ultimately raise the price of the repair for Whirlpool COD customers.
Service Centers are accustomed to paying advertising rates or referral fees to those companies who publish a directory or create a presence on the Internet in order to capture potential customers shopping for service. These companies spend many dollars creating a connection between consumers shopping for service and businesses offering those services. This is a service which each service center must evaluate for return, as with any advertising.
Manufacturer referrals are different. Manufacturers of appliances or televisions have traditionally offered rates lower than COD rates to repair their products under manufacture warranty. Service Centers accepted these lower rates in exchange for access to tech support, service literature, steady volume of work and, most importantly, for COD referrals after the manufacturer warranty expires. Our understanding is that the warranty reimbursement rate was not increased in conjunction with the loss of this major benefit (COD referrals) of being manufacturer authorized.
While the immediate impact will be on the ASC and the consumer, we believe the long term impact will be to the manufacturer. Companies spend billions of dollars trying to drive brand loyalty. When the customer calls in to the manufacturer to ask for support or service, they are already disappointed that their product has failed. Most already expect the manufacturer to continue to bear some of the burden of repair when their product fails beyond the warranty. Imagine the reaction if the customer discovers that the brand for which they pledged their loyalty, has inserted a hidden expense in to their service event and the brand will profit from the failure of their product.
NESDA believes that the following is a direct result of this policy:
1. There is the direct added cost to the ASC, and thus the consumer.
2. There is the added administrative burden, and its associated cost, of the ASC providing data to Whirlpool through a dummy warranty claim. They are not paying for data acquisition.
3. There is the added cost to the consumer of using only Whirlpool Certified Parts for repairs where generic parts may be as good and perhaps less expensive. The choice of parts should always be the consumer’s.
4. There will be a point in time when the consumer becomes aware of this. When this happens, between the power of the internet and social media, customer dissatisfaction will occur and ultimately damage the brand loyalty of the manufacturer and the product.
We believe that any manufacturer that administers this policy will create unhappy customers and ultimately affect brand loyalty and future sales. We all know that most happy customers tell but a few people in their lifetime of positive brand or service experiences. Yet, those same customers tell many more people about their negative experiences.
We are happy to report that manufacturers of consumer electronics are not participating in this type of policy. We applaud their wisdom and understanding that, at the end of the day, they will drive loyalty and create more happy customers than their competitors.
For these reasons NESDA is of the opinion that this policy is detrimental to the industry and the consumer.
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NESDA Ethical TV Service Centers Ask For Opportunity To Serve Consumers In Wake of TV Repair “Sting”
WEBWIRE – Tuesday, June 18, 2013
FORT WORTH, TX. — On June 5, an American Broadcasting Company (ABC) program called “The Lookout” featured a segment where program staff called for TV service to a single service center that had been identified as having a poor reputation. Volunteers and staff then dressed up to look like elderly consumers when the TV repair person came to their home. They wanted to see what kind of response an elderly customer, who might be your grandmother or your parent, would receive from a TV service provider if no one else was there with the elderly person to question the service technician about necessary repair work. The service center contacted by the program for the “sting” was a servicer in New Jersey. That service company has an “F” rating by the local Better Business Bureau and the program wanted to see if this particular service company would attempt to defraud the consumer.
Technical personnel from Panasonic worked with ABC to prep the TV sets used in the “sting” by noting the serial numbers of key circuit boards and parts so any part replacements potentially made by the service center could be verified. Panasonic personnel also rigged a set by partially unplugging a speaker wire cable that could be easily plugged in to restore full sound operation. In two other scenarios, they adjusted the color on a TV set with the remote and they also changed a format setting on another TV noting that it was a simple adjustment and would only take a few minutes to restore the color and format settings with no actual repair being necessary.
On three different occasions, this company provided repair estimates and services that were much higher coupled with parts that should not have been needed to repair the television sets. It was revealed after approving the estimates and having the TV’s “repaired” that no parts were actually replaced to repair the televisions in question although the service center had stated they had been replaced and billed for parts in all three cases as part of the repair process. A television journalist then set up a final service appointment whereby she revealed herself in the “sting” and tried to obtain comment from the technician who immediately left and refused to answer any questions. The journalist finally went to the service center and was also denied comment again from the technician and the identified owner.
Another service company with a similar company name, located in the same geographic area, with an “A+” Better Business Bureau rating began to receive threatening calls as a result of the program’s airing, and respectfully appealed to the producers of the ABC show for help in letting the public know he was not the company they had featured. ABC agreed to air additional information about the two companies to let the public know the good company was still a good company, and they have done so. Unfortunately, this does not help the remaining honest and ethical service providers that may have been affected by the conclusions drawn in the program.
NESDA’s Board of Directors and members believe that the tone set by the program was one that left the viewer with the impression that all television service centers were dishonest although the subject of the “sting” operation was one unscrupulous service center in New Jersey.
For over 60 years, the members of NESDA, the National Electronics Service Dealers Association, have agreed to a comprehensive Code of Ethics that protects consumers from shady business practices. The NESDA Code of Ethics may be viewed on the organization’s website here: http://www.tvrepairpros.com/NESDA-Code-of-Ethics.html
The 700-plus service center members of National Electronics Service Dealers Association (NESDA) are ready to help consumers by offering professional television repair service.
Consumers looking for an ethical and professional servicer are encouraged to visit www.TVRepairPros.com and search for a professional servicer by ZIP code. The website lists contact information for each servicer, brands and products they repair, technical certifications held, length of time as a NESDA member and whether the service provider has undergone a background check and a drug screening. You may also select a servicer, supply information about your product, and request a service call via the website. Many members of NESDA also provide professional installation and service for big screen and HDTV television.
NESDA is the premiere association in the consumer electronics service industry. For more than sixty years, NESDA members have represented the best and most professional electronics servicers available. For more information on NESDA and NESDA membership, visit the NESDA website at http://www.nesda.com or call the NESDA office at 800/797-9197 ext. 116.
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NESDA Welcomes Indusys Technology, Inc. As Corporate Member
(Fort Worth, TX) — Indusys Technology, Inc. (ITI), the world leader of services and support for high tech equipment and products companies, has joined NESDA, the National Electronics Service Dealers Association, as a Corporate Member.
Richard Otsuka, VP of Sales for ITI, made a presentation to the NESDA Board of Directors during the January NESDA Board meeting, announcing that ITI would like to partner with the NESDA service network.
ITI has used independent contractors before, but is now interested in using independent NESDA professionals to service Vizio products under warranty.
“This could be a win for independent service, and will offer an opportunity for some of our members,” stated Dave Thomas CSM/MST, NESDA President. “We realize that doing service work for this company will not be a fit for some business models, but we believe it will provide additional options for other members who pursue this type of business.”
NESDA is the premiere organization for professional servicers in the United States. For more information on NESDA, please visit the NESDA website at www.nesda.com.
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NESDA Rejects TTE (RCA) Service Concept
WEBWIRE – Wednesday, July 01, 2009
(Fort Worth, TX) — In response to a new service model put forth by TTE (the manufacturer of RCA televisions), NESDA (the National Electronics Service Dealers Association) has sent a reply back to TTE Executives rejecting their program, citing philosophical differences and concern for consumer satisfaction.
“Respectfully, I must inform you that the DEX concept of consumer service totally conflicts with the ideals and principles of NESDA and its membership. We are appalled that TTE has adopted this service delivery model and feel strongly that American consumers who chose to buy RCA branded products will be ill-served by the American Systems/OnForce Service Program.” Sent in a letter by Dave Thomas, CSM/MST, NESDA President.
About NESDA: NESDA is the premiere association in the consumer electronics service industry, offering the best benefits programs ROI for its members in the product service industry through value-added services that reduce a servicer’s cost of doing business and offer the opportunity to network with other similar businesses, product manufacturers, distributors, and warranty companies. For more information on NESDA and NESDA membership, visit the NESDA website at www.NESDA.com.
About TTE Technology: TTE Technology markets televisions in the United States under the RCA brand. www.RCA.com.
About DEX: As a provider of supply chain solutions since 1980, DEX offers a variety of forward and reverse logistics programs for high-tech industries. www.DEX.com
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NESDA Members Offer Service Help for TV Repair, Digital Television Transition Via New Consumer Web Service Portal
WEBWIRE – Monday, June 08, 2009
(Fort Worth, TX) – The 800-plus servicer members of the National Electronics Service Dealers Association are ready to help consumers locate quality television repair service via a new online service locator website.
To locate a NESDA member servicer in your area, visit the new NESDA service locator website at www.TVRepairPros.com. Consumers may search for a servicer by ZIP code or state, and can request a service call through the system. The site also offers Television Repair Tips, an Extended Warranty FAQ, and contact information for consumer electronics manufacturers and warranty companies.
Many members of NESDA also provide professional installation and service for big screen and HDTV television.
“As the Digital TV Transition approaches, consumers may need professional help to be sure they will still be able to access their favorite news and entertainment programming,” said Mack Blakely, Executive Director of NESDA. “If you are in need of assistance, a NESDA member business is your best resource for knowledgeable, pro-level service.”
Additional consumer information about the digital TV transition is available at www.tvrepairpros.com/digital-tv-transition-2009.htm
For more information, contact: Mack Blakely, NESDA Executive Director, NESDA, 817-921-9061 ext. 110; firstname.lastname@example.org.