Case Study

Dealer Case Study

Extended protection plans change the calculation for dealers from being reactive—a machine is broken and needs to be fixed—to proactive.


Increased Profits, Delivered Parts & Service Revenue, and Built Investment Portfolio Of +$10 million

Garde Solution’s structured approach enables a seamless transition to data-driven solutions and optimized processes that impact a dealer’s bottom line. Extended protection plans, change the calculation for dealers from reactive—a machine is broken and needs to be fixed—to proactive, while also shifting the customer’s operating expenses from a variable cost to a fixed cost. This shift further supports the customer’s equipment ownership and risk management strategy. Well-managed extended protection plans provide both direct and indirect value for dealers and customers.


Taking Their Extended Protection Program to the Next Level


We partnered with one of the largest industrial equipment dealers in the southern U.S. to review their extended protection plans and optimize them for greater value. The dealer offered extended protection plans to their customers that were both underwritten by the manufacturer and placed on the dealer’s balance sheet. They recognized the value in engaging A&P’s expertise to assess their risk management strategy and identify solutions that would serve their interests while meeting customer demands.

The Outcome

The result of our intervention: the dealer overcame a net loss in 2014 to make the new Extended Protection Program profitable by 2016. Regular reporting and analytics provided the leadership team with tools to make data-driven decisions on coverage. As a partner for the long haul, we continue to collaborate with the dealer to refine the EPP program, maintain resources in place to appropriately monitor risk, and ensure that the program stays fully integrated and aligned with the dealer’s financial and customer loyalty goals.


As a first step, we conducted a feasibility study, which included an assessment of the existing extended protection programs and an evaluation of those systems and data. The findings from that study led us to recommend that the dealer re-domicile its existing captive to the U.S. to focus on extended service contracts. When properly established, a captive is advantageous because it increases engagement from dealer leadership, ensuring more active risk management and control over cost, coverage offerings, and claims.

Next, we reviewed the extended protection plan terms and conditions and evaluated the claims history, going through each machine, line by line, to determine an appropriate pricing & market strategy. As part of this effort, we worked to integrate the new quotes for extended protection plans—including terms, coverage type, and pricing—into the dealer’s new customer relationship management software (CRM) system. With the new system in place, we worked with the dealer to implement a new extended protection program with dedicated claims adjudication.



Parts & Service Revenue Increase OVER 4 YEARS




$5 M


“Jimmy and his team at Garde Solutions have been our partners since 2014.  They understand our business, are aligned with our goals, and their creativity, persistence, and execution have delivered results for our organization.”


Jerry Young, Vice President, and General Counsel

at Mustang Cat