February 24, 2021
“Now you're able to offer your customers something that will financially protect them from what you know is a potential expense, but they view as a non-expense down the road.” -Rich Danchisin
If you’ve listened to the podcast for a while, you know that distributors who can teach a contractor how to make more money foster loyalty for life. The challenge is finding opportunities that don’t squeeze already tight distributor margins.
Enter Rich Danchisin of Trinity Warranty. His company offers creative extended warranty solutions across multiple verticals. These customizable programs on residential, commercial, industrial products might be the edge your company needs to boost its bottom line.
“We design programs to fit the needs of the distributors that we work with.” That’s Rich with a Cliff’s Notes version of Trinity’s focus, but his swift delivery doesn’t do the products justice. Trinity provides comprehensive warranty programs to contractors who install and maintain heavy equipment - think HVAC, refrigeration, LED lighting, and even pool equipment.
The offering can provide wholesale distributors with a good income source without the pesky burden of cash tied up in depreciating physical inventory. For the contractor, Trinity’s warranties remove the friction associated with so many service calls, allowing them to repair equipment and receive payment aligned with their market and business model while not costing the consumer anything at the service time.
So, how do warranties help the distributor side of the relationship? Coverage is the perfect tie-in for what they’re already doing, and, as Rich points out, with Trinity, distributors can select one warranty company to cover everything, regardless of manufacturer. “I like to say we are brand agnostic,” he laughs. It’s profitable peace of mind any way you look at it.
Trinity also provides extensive training to distributors who want to provide comprehensive educational support to contractors as part of their value-add. Alternatively, these warranty programs can simply provide passive revenue streams, depending on a distributor’s goals.
Finally - and crucially - Trinity’s ability to customize private label coverage is yet another reason to consider adding warranty options to the menu. A company-branded program can differentiate distributors in tight marketplaces by going above and beyond a manufacturer’s primary offering. As Rich says, it’s a great way to become known as a more innovative distributor than your competitors.
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Distribution Talk is produced by The Distribution Team, a consulting services firm dedicated to helping wholesale distribution clients remove barriers to profitability, generate wealth and achieve personal goals.
This episode was edited & mixed by The Creative Impostor Studios.