Product Performance Guarantee (PPG) Overview
A Product Performance Guarantee (PPG) is a specialized type of warranty which is included within an OEM’s product offering. The guarantee speaks to the manufacturer’s product quality and confidence in its overall performance. Such as, if “said product” fails to adequately perform its intended task and the customer suffers a quantifiable loss as a result of this failure, the OEM provides compensation by way of a financial reimbursement.
Example: Mobile device screen protection products. If a consumer purchases a screen protection product and that product fails in protecting customers device, resulting in a damaged screen, then the OEM of the screen protection will compensate the customer for the cost of a screen repair up to a pre-defined benefit level.
A Product Performance Guarantee (PPG) is a way for an OEM to offer an enhanced value proposition to its customers by differentiating itself and its products in a crowded market.
PPG Benefits:
• OEM unique sales proposition
• Helps differentiate products
• Increases retailer gross profit margin
• Complements device insurance programs
• Widely accepted by end consumers