🇦🇺Australia

Excluded Warranty Costs

2 verified sources

Definition

Warranties often exclude significant costs like return shipping, onsite service, or installation for bulky precision equipment, leading to direct losses.

Key Findings

  • Financial Impact: AUD 500-2,000 per claim (shipping, onsite labour for remote/bulky gear)
  • Frequency: Every claim with exclusions, common in electrical maintenance
  • Root Cause: Discretionary lifetime warranties and fine print exclusions not enforced manually

Why This Matters

The Pitch: Electronic maintenance businesses in Australia 🇦🇺 waste AUD 500-2,000 per claim on unrecovered shipping/install. Automation flags exclusions upfront.

Affected Stakeholders

Logistics Coordinators, Warranty Processors, Procurement

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Warranty Claim Delays

AUD 5,000+ per major claim delay (downtime, shipping, compensation); 20-40 hours per claim assessment

Churn from Warranty Disputes

2-5% annual revenue churn from lost clients; AUD 10,000+ per major downtime incident

NATA Accreditation Non-Compliance Fines

AUD 5,000-20,000 per failed calibration audit or rework cycle

Regulatory Compliance Overheads

AUD 20,000-50,000 annually per firm in compliance overheads and technician shortages

Calibration Downtime Bottlenecks

AUD 1,000-5,000 per week of equipment downtime

Warranty Claim and Rework Costs

2-5% of $3.1bn industry revenue lost to rework and warranties; 10-20 hours per faulty repair

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