Extended Warranties and Sales Training Program

Our company currently faces an ethical dilemma concerning the sale of extended warranties. This ethical dilemma crops up for supervisors, managers and other staff conducting business in the company as we all work towards the same goal. Supervisors, managers, marketing staff and other stakeholders have to work together to come with a solution considering all sides of this ethical issue. Failure to deal with this ethical dilemma concerning extended warranties can cause consumer bans, decrease customer loyalty, and negative press.

I respect the decision of holding a sales training program which will make salespeople sell extended warranties more aggressively than before to maximize profit. However, I am convinced that there is much better way we can do in this company than the training program and the aggressive selling strategy of the warranties. First of all, these warranties do not meet their expected benefit to customers as the most electronics fail in the old age period when the warranties have already expired. This company respects customers and should not conduct business that does not benefit buyers to the maximum. Additionally, it is unethical to sell the warranties for too much benefit when our customers, who the company values the most, do not benefit from the warranties.

Conducting the training will be unethical considering our mission and objectives. It is not right to train our salespeople to sell the warranties, whereas we understand that they are not that important to customers. This will generally destroy our image for which we have worked so hard to maintain. In addition, customers have comprehended that the warranties do not do them as much favor as they expect. Therefore, the training might not work to already convinced customers and will cause additional expenses to a company.

To maximize its profits, the company can sell short-term warranties which will be cheaper than the extended ones. The low price will make more customers purchase them, and the warranties will be useful to them. I look forward to hear your response.