Warranty support is a subset of after-sales product support.
After-sales product support is a broader concept that includes warranty support and other services provided to customers after a product is delivered.
Warranty Support
Warranty support is a promise by the manufacturer to correct specific manufacturing defects at no cost or limited cost to the owner. The estimated cost of warranty support is typically included in the sales price of the product.
Warranties can be divided into two types: implied and express.
Implied Warranty
An implied warranty is an unwritten promise established by a country’s laws. It generally applies to products sold to consumers and is closely linked to consumer protection legislation. Implied warranties are not usually part of business-to-business (B2B) transactions in the commercial marine industry.
Express Warranty
An express warranty plays a critical role in the B2B marine industry.
It is a written promise of product quality and performance, which may include any statement, description, or affirmation made by the seller.
Express warranties vary widely across industry segments and OEMs. An express warranty may cover a single product or an entire fleet; it can be renewable or non-renewable, and its duration can be defined in different terms — such as operating hours, kilometers, or years, or a combination of these.
The express warranty is limited by the length of the warranty period and the specific warranty terms set by the manufacturer. These are typically detailed in a warranty agreement signed by both the seller and the buyer.
Successful express warranty management requires a carefully formulated aftermarket strategy.
Extended Warranty (Service Contracts)
The term “extended warranty” appears frequently in the marine industry. Despite its name, it differs significantly from implied or express warranties. Because of this difference, it is often referred to as a service contract.
The cost of an extended warranty is not included in the product’s sales price, and its terms and conditions can differ greatly from those of standard warranties.
In the commercial marine sector, OEMs may offer a pre-defined extended warranty service or develop customized extended warranties based on project requirements. The latter is becoming more common, as it provides greater flexibility to accommodate varying project needs.
Managing Warranty and After-Sales Support
Effective warranty management requires controlled flexibility.
After-sales is where dissatisfied customers are either retained or lost. Losing a customer results not only in lost future sales but also in the cost of acquiring a replacement.
For this reason, a degree of case-by-case decision-making is often necessary.
For example, if a customer is strategically important, a manufacturer may choose to offer goodwill support — covering a repair cost even outside the warranty period or terms. While this can preserve valuable relationships, excessive goodwill gestures can blur the boundaries between warranty support and general product support.
After-Sales Support Beyond Warranty
After-sales support continues long after the warranty period ends.
Once a product passes its warranty phase, normal wear and random failures will eventually require spare parts and servicing.
Although warranty coverage has ended, it is typically the same after-sales team that continues support through spare parts sales, repairs, and field services. At this stage, the after-sales business often becomes highly profitable.
Studies show that while after-sales services generate roughly 20–25% of a manufacturer’s revenue, they can account for 40–50% of its total profit.
An urban legend claims that products are engineered to fail shortly after the warranty expires — this should never be true for well-designed systems. In fact, the post-warranty phase is when manufacturers can benefit most from profitable and value-driven after-sales support.
The Strategic Value of Warranty
Product warranties have a surprisingly short history, gaining prominence only around the 1960s. A warranty represents a balance between customer assurance and risk management. A longer warranty period often signals greater confidence in product reliability and thus increases buyer trust.
To minimize risk, manufacturers should collect as much data as possible on product performance and service history.
For example, marine propulsion system manufacturers often use warranty as a sales argument and operate sophisticated after-sales platforms to collect and analyze service data.
While after-sales profits are typically generous, many OEMs still treat warranty management as an afterthought — merely a cost of doing business.
The most basic strategy, administrative warranty management, focuses on cost control and fraud detection.
More advanced approaches include operational warranty management, which uses warranty data to reduce failures, improve customer satisfaction, and optimize costs.
The highest level is strategic warranty management, where warranty policies are developed alongside commercial and technical strategies.
With thoughtful planning, warranty can become a powerful tool for learning.
Many successful manufacturing companies treat warranty as a feedback loop, using service and claim data to identify recurring issues and improve design, production, and quality processes.
This continuous feedback is also a key element in quality management systems such as ISO 9001.
✅ In Summary
Warranty support is a defined, contractual commitment to correct defects — while after-sales support is the broader, ongoing relationship between manufacturer and operator throughout the product’s life cycle.
Together, they shape customer satisfaction, loyalty, and long-term profitability.
🚢 Take Action
If your company is looking to improve warranty management, optimize after-sales operations, or create clearer product support documentation, I can help.
As an independent marine engineering consultant, I specialize in developing warranty and product support strategies that strengthen customer relationships and boost operational efficiency.
👉 Get in touch to discuss how we can make your warranty and after-sales processes work smarter and deliver better results.