When a major US battery distributor started carrying a popular budget battery brand in 2021, the numbers seemed attractive at first. Eighteen months later, the reality was brutal: their return rate hit 18%, and they were spending more on warranty replacements than on new inventory.
“Our technicians were spending more time on warranty claims than selling new inventory,” the company’s purchasing manager recalled.
The Transition to CHISEN
The distributor transitioned to CHISEN 6-GFM series batteries for UPS applications and CHISEN 6-EVF series for their electric vehicle segment.
Implementation Approach:
- Initial 3-month trial with CHISEN 6-GFM-65 for UPS inventory
- Parallel testing: existing brand vs. CHISEN in identical applications
- Full inventory transition after 90-day performance data confirmed
Results After 12 Months
| Metric | Previous Brand | CHISEN | Improvement |
|---|---|---|---|
| Return rate | 18% | 10.8% | -40% |
| Customer complaints | 4.2/week | 1.1/week | -74% |
| Technician hours on claims | 28 hrs/week | 9 hrs/week | -68% |
| Customer retention | 71% | 89% | +18pts |
| Net margin per unit | $3.20 | $6.80 | +113% |
The Margin Surprise
Despite CHISEN’s slightly higher unit cost, the overall margin per dollar of revenue actually improved significantly. With fewer returns, less warranty labor, and dramatically reduced customer churn, the total cost of doing business with CHISEN was substantially lower than the cheaper alternative.
“The cheapest battery is never the cheapest,” the manager concluded. “CHISEN taught us that lesson with actual data.”
📩 Email: sales@chisen.cn 📱 WhatsApp: +86 131 6622 6999 🌐 www.chisen.cn
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