The Apparent Paradox of Generous Product Warranties

I recently had an exceptional warranty experience with a company whose product I’ve had for decades. Specifically, I redeemed a 25 year warranty on my Leatherman, an Oregon-made multi-tool that has been part of my go-to toolkit for years.

The experience was so complete that I just had to tell the story. Leatherman's product-support approach challenges traditional methods of building, selling, and supporting everyday products.

Let me be clear up front. This isn’t a sponsored observation, prompted or rewarded by Leatherman. I’m always on the lookout for product and service experiences that are notable.

So let’s start with what we all believe about customer support. There is a commonly held theory of customer service and product warranties; the more limited the better. Manufacturers and resellers often provide the bare minimum warranty allowed by consumer law.. Even then, they try to wiggle out of product support. We share stories about spending hours on the phone or time going back and forth to stores to redeem a warranty.

Paradoxically, we also encounter limited-period warranties that are easy to redeem. But only because the products are cheap to manufacture and cheap to buy. It’s just easier to just redeem them than argue with a customer. But, take one step past the one, or two-year warranty window and there is no hope for coverage of a faulty product.

Either of these models treats the product as time-limited. Something to be supported, reluctantly or otherwise, for a finite period. It’s as if the manufacturers and resellers don’t believe in the product. At least that’s the unstated attitude; the belief communicated by their actions.

But what was my Leatherman experience like?

Radically different.

Let me tell you the story.

I’ve had my Leatherman Supertool 300 for years.

Leatherman Supertool 300 © 2023 Christopher Roosen

I got it when I got out of university, to replace an earlier and smaller model.

It is, without a doubt, my go-to tool for all those little everyday jobs. It is robust in its design, easy to use and safe with its blade locking mechanism. I’m careful with its use and clean it often.

However, the other day, while carving out a little divot in a chunk of wood, the tip of my main blade snapped right off. It’s childish, but there was a moment of devastation. It’s been everywhere with me and there it was, maimed.

My first port-of-call was to explore if I could replace the blade. In searching the Leatherman site, I realised they had a warranty section. I thought little of it, given how conditioned I am to the 1, 2 and 5 year warranties that are the norm. But investigating further, I was stunned to find Leatherman’s warranties are 25 years, excluding only the reasonable basics:

“The Leatherman Warranty covers only the original/primary owner and does not cover abuse, alteration, theft, loss, or unauthorised and/or unreasonable use of Leatherman products.”

Considering I was using it within its reasonable use case, carving a sliver of wood, I seemed to fit. I found a clear warranty remittance form online, filled it out, packaged up my Leatherman and couriered it to the address listed.

I have a suspicion the company has learned about what their products mean to people. I noted that they clearly stated exceptions to tools that had ‘sentimental value’

“WHAT IF THE RETURNED TOOL HAS SENTIMENTAL VALUE? If we cannot repair the tool, we will contact you with the available options. One option is to send the sentimental or engraved tool to the Leatherman factory in Oregon, USA for repair. This service takes approximately 3 months and incurs a freight cost. This can be discussed after the tool has been assessed.”

Contrast this generous coverage to normal limited product warranties. I can’t help but wonder if this translates into how we, as product users and consumers, think about products; treating them as disposable, temporary, or somehow flawed. Our whole shared model of perception, sale and support orients around buying and throwing away item after item.

Sure, this offers a temporary boost to corporate cash-flow, with each re-purchase a brief spike on the graph. But this approach doesn’t create lifelong fans; people that believe in the products, stand by them, advocate for their family, friends and community. Lifelong fans are those who end up buying more of the products as new and useful features appear.

That sort of advocacy requires a different approach. One that is permissive, trusting and long. I get it. It’s pretty scary from a corporate perspective, with deep fears of a warranty that will be abused, and fears of cannibalising new sales. But the terms state that it’s only for everyday use. Serious damage would be very visible and fall under protecting inappropriate or extreme use.

For many products, the right operational management can make the support process effective. You could deploy a few skilled people into each region, with a wide supply of parts, who can service tools. Or they can turnaround a replacement from stock. After all, many of the production costs of parts or entire units are reduced over time once a mass-production line is in place.

Then, think of the upside. It’s a recipe for commercial longevity. Not trying to spike sales after the normal two-year warranty period, but building a community of lifelong advocates and buyers. This thinking also propagates back into product-inception. They build products with pride; to last longer, to go the distance. This reduces the likely of even needing the warranty.

I’ll be honest, having been conditioned by my experiences with other product providers, I wasn’t expecting much. Most likely, they would return my tool with a statement that it somehow wasn’t under warranty. Maybe best case a blade replacement.

Tracking back to my experience, a few days after posting my broken tool, I checked the mail. I was stunned to find a little package from the local manufacturing depot. There, inside the wrap…

…was a replacement Leatherman.

I couldn’t believe it. A tool decades old, which has so far served me exceptionally well, had been totally replaced.

I can’t describe the level of goodwill this engenders. No matter that my tool was replaced, there are features of some of the newer models I would like to use. So the next multi-tool I’ll buy will be a Leatherman, no question about it. In fact, I’m more likely to upgrade because I know the new purchase will also come with the same level of exceptional support.

I think the lesson is clear. Those limited product warranties are a two-edged sword. Manufacturers might choose to fight each warranty claim, or they might replace the made items, but only for the brief life of the product.

Either way, they’re creating a short and commodity-based relationship. One that will be easy for a customer to abandon when some new glittery (and/or cheaper) thing comes along.

That’s not how you build a lifelong relationship.

Just ask Leatherman.