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    Home»Business»The True Price of a Product is in the Warranty
    Business

    The True Price of a Product is in the Warranty

    By Chris HigginsFebruary 12, 2025Updated:February 12, 2025No Comments5 Mins Read
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    How often do you use the warranty tied to products you purchase?

    In my personal life, I seldom buy big-ticket items and rarely think about the warranty associated with them, unless it’s something like an automobile or major appliance. 

    Why?  

    Because when I try, the manufacturer often makes the process so difficult or costly that it’s not worth my effort.  

    But, in my professional life, I see product warranties much differently, especially when I make larger purchases or when my company, Hort Americas, represents a vendor. We must be confident in the products we sell and the brands we stand behind because the company’s reputation and our client relationships depend on them. 

    I strive to partner with suppliers who prioritize quality and customer service. While I never expect issues, the reality is that problems happen. Over the years, I’ve learned that challenges either weaken or strengthen business relationships when issues come up. What truly matters is how you respond because that’s what clients remember.

    So what really is a warranty?

    A warranty is a (legal) promise by a manufacturer that the product or service will meet certain standards. It’s typically included in the product’s price (we’ll come back to this point). Depending on terms, a warranty may cover repairs, replacements or refunds. Some warranties offer full coverage, while others have limitations. Ultimately, it’s the buyer’s responsibility to understand what’s included.

    Why is this relevant right now?

    Over the past few years, I’ve watched innovation reshape the CEA industry. Technology is evolving rapidly, and new companies emerge seemingly overnight with big claims. While innovation is inevitable, change in agriculture and commercial horticulture tends to be slow. This is because it takes time to understand how new developments impact crops — most of which grow slowly and need replications to validate results.

    At the same time, I struggle to understand how some manufacturers drop prices dramatically during an industry slowdown. It makes me question what they’re cutting to offer such deep discounts. At some point, cost reductions shift from being smart business decisions to compromises that sacrifice quality or service.

    Since many of you know I spend lots of time in the LED grow light segment of our industry, a colleague and I decided to break down the key differences among 10 major suppliers.

    ManufacturerLength of Warranty
    15 Years
    21, 3 or 5 Years
    35 Years
    43 Months
    52 or 5 Years
    61 Year
    71 or 5 Years
    85 Years
    95 years
    105 Years
    ManufacturerRemedy StructureCredit Option?
    1Repair, replace, or firmware fixCredit is not mentioned
    2Repair, replacement OR credit for defective fixturesYes, credit is explicit
    3Repair, replacement, OR credit at their discretionYes, credit can be issued
    4Repair or replacement within 3 months onlyCredit not typical
    5Repair, replacement, or pro-rated refundPartial “refund” approach
    6Repair or replace – strongly limited by 25k/year capCredit not typical
    7Repair, replace, or refund – but shipping/labor excludedCredit/refund if no remedy
    8Repair or replace – void if usage beyond 5,000 hrs or 1k cyclesNo explicit credit option
    9Repair/replace, or refund at manufacturer discretionRefund if not other remedy works
    10Repair or replace partsNo “credit” clause; some lamp coverage is pro-rated after 90 days
    ManufacturerUnique Highlights
    1
    2
    3
    4No Coverage After 3 Months
    5Pro‐rated refunds can drastically reduce actual reimbursement.
    6$25k/year liability cap can be high‐risk for large‐scale ops.
    7
    8If usage goes beyond 5,000 hrs/year or 1,000 cycles, coverage is void.
    95‐year coverage; excludes normal wear/tear/accidents, requires proper storage/maintenance, and has liability capped at min ⁡(Contract, €500k )
    10

    What did I learn through this exercise?

    I didn’t necessarily learn anything new. Instead, what I already believed was reinforced. It became clearer that choosing the wrong warranty could leave our clients out of pocket for significant amounts. In fact, the larger the installation, the more devastating the consequences.

    I believe that a warranty is only as strong as the company backing it. Therefore, I still question how smaller companies can absorb the financial hit if a warranty claim needs to be serviced. This reminds me of the old saying, “If a price seems too good to be true, it probably is.” 

    The reality is, you can’t have the best quality and the best service at the lowest price. And if you do, it won’t last. Eventually, the company offering the warranty will be forced into a financial position where they simply can’t continue.

    The best warranties above had:

    • Reliability and transparency.
    • Lasted 5 years — anything lower was below standard.
    • No hidden verbiage or short coverage.
    • No verbiage that prematurely voided the warranty.
    • A simple and easy-to-follow return merchant authorization (RMA) managed by local representatives.
    • A straight-forward warranty vs. a confusing multi-tier “credit or partial refund” process.

    Remember, a warranty is a bet on a company’s future. If a manufacturer can’t afford to stand behind their product long-term, this is a warning sign. Because at the end of the day, a warranty is only as reliable as the company backing it. 

    And when corners get cut, the manufacturer isn’t one who pays the price — it’s the buyer.

    I would like to give special thanks to Blake Lange and Tom Trush for helping me put this piece together.

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    Business Greenhouse Technology Indoor Ag Technology LED Grow Lights Technology
    Chris Higgins

    Chris Higgins is the Founder and Editor of Urban Ag News. Chris is also the co-Founder of both Hort Americas and the Functional Plant Company. Learn more about Chris Higgins by visiting and connecting with him on LinkedIN.

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