ThinkSmart Wins Woolworths Tender

ThinkSmart Wins Woolworths Tender

ThinkSmart Wins Woolworths Tender To Support Delivery Of Warranty Services To Dick Smith, Powerhouse And Tandy Stores

– Tender covers 400 stores in Australia and NZ, including Dick Smith Electronics

– ThinkSmart to expand sales management team to support product delivery

– Tender deepens ThinkSmart’s strong relationship with Dick Smith Electronics

ThinkSmart Limited (ASX:TSM), an international computer and office equipment financing company, has expanded its revenue base in Australia by winning a joint tender with The Warranty Group to support the delivery of warranty products and services within the Woolworths Consumer Electronics Group. 

The tender contract will see ThinkSmart and The Warranty Group team up to deliver warranty products and services through the Dick Smith Electronics, Powerhouse and Tandy chains in Australia and New Zealand.

ThinkSmart is responsible for all in-store staff training and development, motivation and marketing in relation to the delivery of product warranties.  ThinkSmart will receive a commission on the risk premium from The Warranty Group for this undertaking and will expand its sales management team to support the product deployment across approximately 400 stores.

The Warranty Group will provide the core product and undertake all administration and customer service responsibilities, with underwriting provided by their related company Virginia Surety Company, Inc.

Ned Montarello, managing director and CEO of ThinkSmart, said the signing of the tender agreement represented an immediate new line of revenue for ThinkSmart over and above revenue forecasts outlined in the company prospectus last year.

“This agreement leverages our sales management infrastructure and core skill sets, while providing another underlying value-added revenue channel to our business model.  Furthermore, it strengthens our relationship and integration with the Dick Smith group,” Mr Montarello said.

ThinkSmart and The Warranty Group will commence providing the product and services in stores from the beginning of Q2 2008.  The warranty solutions will provide customers with a comprehensive range of warranty protection, including full product replacement for faulty products under the purchase price of AU$400.

About The Warranty Group: The Warranty Group is the world’s premier provider of extended service plans, with operations in 33 countries and 2100 employees.   Virginia Surety Company, Inc was founded in 1927 and has an A- (Excellent) Claims Paying Ability Rating given by A.M. Best Company on the 30th November 2006.

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