European monitor companies overestimate costs

European monitor companies are overestimating their warranty and pricing service costs by nearly 30 percent, research has found.

In its Desktop Monitor Warranty Report, which looks at warranty service and pricing in
Europe, Meko found that monitor companies in the EMEA regions will make warranty accruals of around $300 million this year.

However it said a more accurate estimate put actual service costs at about $230 million, which gave companies a safety margin of 30 percent. It said this could be put to better use by outfits in the current conditions.

It also found that the costs of mainstream service delivery methods have gone down by between 18 percent and 21 percent since the last report in 2007.

The new report also looks at historical data going back to 1995 and tracks movements in the service landscape caused by price changes, technology advancements, changes in the channels where monitors are sold and the dreaded credit crunch.

Azhar Mohd-Hashim, Meko´s warranty service manager, says the report aims to provide service managers and service providers with a “benchmark of performance”.

“As the advantages of a single European market begina to become a reality, service centres are thinking of new ways to streamline and make their operations more effective. The report will help them to decide what to do to break away from the crowd,” he said.