ThinkSmart wins Woolworths tender

Computer and office equipment financing company, ThinkSmart Ltd, has won 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.

West Perth-based ThinkSmart will be 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.

ThinkSmart managing director and chief executive Ned Montarello 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.