The retailer can supply the labour, source the parts and may include a "back to base" element in the offer. Part of the service is a management information package to retailers that provides failure rate analysis. The retailer therefore has the option to do his own repairs and maintain customer contact and claim back the costs and VAT- or a network of contract repair operators with a centralised claims administration can act entirely independently, including where the retailer has failed. The risk is laid off to underwriters with an IPT/VAT effective structure. The pricing parameters are:

• Failure rate for 1, 2 or 3 years
• Insurers margin (Cat A insurer)
• Labour, costed on a standard engineer national call out cost - options for 2, 4, 6, 8 hour service standards
• Component manufacture guarantee covers parts replacement free of charge for 24 months, with a reserve for "problems" / contingency.
• IPT, VAT
• CPU admin and margin

Customers are encouraged to log in to CPU for registration - therefore non retailer payment is quickly highlighted. Larger retailers contract for weekly declarations and are invoiced immediately. For small retailers administration is via the web site and prices will be standardised. Credit control will be by cash up front block buying. 14 day "Dead On Arrivals" are not covered, and it takes a month for failure rate trends to show - so rogue retailers are quickly identified. Prices are automatically adjusted contractually by failure rates for individual retailers.

There is no known competition with such a comprehensive, competitive, cross checked and externally underwritten structure. Some major retailers may do this in house, some maintainers offer an uninsured service and some larger insurers attempt to replicate, but without the fine cross checks.

First year manufacturer guarantee for laptops - this service does not exist in as wide a format as for desktops as all laptops are assembled in the Far East. Therefore, legally, conventional manufacturer's warranties apply. However, they are of variable origin and may still represent a merchantable quality risk. (CPU's will advise which models are suitable for cover)

Extended warranty for desktops and laptops - a consumer service either broked via retailers or sold direct. As in the main electrical retailing market, retailers push this as a major profit centre, as a value added service with a high margin that dovetails with their initial guarantee. The product and pricing model is as for the first year guarantees but with additional pricing complexity

• Lapops are more expensive
• Package deals (with peripherals) are more expensive
• Prices are held for 30 days after initial purchase, after which a customer may purchase with a 10% surcharge in the next 11 months - after which no purchase is allowed through the retailer
• Customers can buy direct for machines up to 3 years old - on the same rates as retailers but without the retailer discount
• Direct prices are worked on % of value, with a minimum charge of £70
• 4 year cover is available on a very selective (retailer) basis

CPU also provide accidental damage, fire and theft insurance, plus help line services, which can be sold on a stand alone or packaged basis.