Posted by Pat-CT on June 28, 2011 at 09:06:37 from (68.9.37.25):
In Reply to: Warranty repairs!!!! posted by JDseller on June 28, 2011 at 07:45:19:
I agree. Having worked for a dealership, and taken classes on dealership management, Most of the costs that dealers eat is just to keep the customer happy. This way they tell friends or farmers that they had a positive experience with the warranty work and also they keep the customer.
The shop is a very hard thing to get profitable. LRR on a good- very good mechanic I think is 85%. Most average between 60-75, when I took the class. Billing of materials is another problem with the shop. Oil is a HUGE money loss if not billed correctly. I could go on forever about what can be done but thats not the topic here.
JD seller, Ive only done warranty repair work, never delt with the money side. For flat rate, they usually pay pretty good for a fix, I would think for the dealer to recoup some of the costs they would only have to pay the mechanic, minus overhead etc .... and the rest would be towards recovering the lost costs, for transport, the truck drivers wage etc correct?
I have a pretty funny story about your shipment claim, My teacher at school worked for a dealership, The parts guy had a customer come in and order paint. The parts guy accidentally ordered the paint on an overnight delivery, not stock order. If i remember right he ordered it after 5. 5 was our cutoff time. I think the shipping bill came to something like $200.
Needless to say, the owner couldn't sell the paint. He kept it as a reminder to the parts guy, and ordered more paint for the gentleman that day.
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