Member Only Service Contract Retro Program
The AIADA and Alpha have partnered together to bring to our members a new member benefit. The low volume retro program brings to our dealers the benefits of a retro program previously only available to dealers that sold more than 13 to 15 service contracts a month. Below you will see a proforma that outlines the profits associated with selling service contracts and additionally, the added profits from the retro program.
When a service contract is purchased, that money sits in a reserve to service the account. Money left after the contract expires can result in additional profit to a dealer either through reinsurance or a retro program.
Reinsurance
One method is a reinsurance program whereby a separate account is set up, owned, and managed by the dealer. In this account resides the money from which repairs are paid for the duration of the sold service contracts. There is some added expense and effort required to set this account up.
Retro
The second method is a retro program whereby the dealer also shares in the remaining reserve, but the monies reside with the service contract administrator.
Both methods for a dealer to share the reserve requires a minimum number of contract sales per month. The AIADA/Alpha Retro Program allows dealers to share in the reserve profit, with no minimum number of contract sales per month.
Profit Estimator
Play with the profit estimator below to help imagine your new source of income, available to you with zero additional effort. Click here to inquire about this new member only revenue generation tool and an Alpha agent will be in touch.
If you are already an Alpha dealer, you can ask your Alpha agent to add you to the program.
Service Contract Profit Estimator
Play with the fields hilighted in green to explore different scenarios that will affect your service contract profitability.