It’s Not a Fun Topic

Are you a Dealer that is NOT taking advantage of the new laws?

“It’s Not a Fun Topic”

I know it’s not a fun topic, but we need to talk about your warranty. The laws passed in all 50 states allow dealers to request retail pricing on warranty Parts and Labor. This is typically worth an additional six-figure gross profit to a midsize dealership on warranty repairs.

That’s worth repeating, this is typically worth an additional six-figure gross profit to a midsize dealership on warranty repairs.

The manufacturers aren’t required to pay you at your retail rate, until you request it.
Are you a dealer that is not taking advantage of the new laws yet?
Why Not? When we talk with our clients and prospective clients, besides the cost, we find a few other reasons, that seem to account for much of the hesitation in requesting to be paid at retail rate for Part and Labor.

  • fear of retaliation and that requesting retail reimbursements will somehow jeopardize the dealership’s relationship with their manufacturer
  • concern about the process and how time-consuming and complex it is (“who in my store could even do it?”)
  • confusion about the laws and how they may apply to your dealership.

Retaliation is largely a myth perpetrated by the manufacturers to reduce the number of requests received each month. Every month a dealer waits to apply, is a month longer before their warranty reimbursement rate goes up. It’s not rocket science and it’s not Peanuts either!
As to the concerns about the process, you’re right, there are a lot of moving parts to getting it done correctly! Do you have a manger who said, “I can do this and save you the money boss!”, and months later you are still waiting for the increase. Dealership personnel who may attempt this once a year, can’t typically do it as effectively as someone who does it every day. Our software quickly finds the sweet spot in your data to use for your submission, and our analysts review every line of every repair order to get it right the first time and at the highest allowable rate possible.
We know and understand the laws and we know how to leverage them to your advantage. Here is an example, “did you know that some states allow you to apply for a rate increase twice a year!” In all the articles you have read about this topic, has anyone ever told you that you may be able to apply twice a year? We do this every day, and we understand how to leverage your data to maximize your return on investment.
Speaking of your investment, we are not like many of our competitors in this space because we charge a one-time fee instead of a monthly or percentage of increase. Most of our clients have a payback from the increase, of less than 2 months and many are whole again in under a month of receiving the increased warranty reimbursement rates! Many of our clients are enjoying an 80% or higher markup on warranty parts sales and increases in labor rates north of $18 & $20 are pretty commonplace on our submissions.
In short, we can take on the burden of applying for a warranty reimbursement rate increase at your retail rates, for both parts and labor. We can do it quickly, painlessly and of course professionally without breaking the bank. We will even let you know when it is time to apply again, so you never miss an increase again!
I know this is a BIG Ask, but if you haven’t filed for Retail Reimbursement yet, PLEASE pick up your phone and call me right now, before another day slips away from you. Let’s just talk and see if our team can help yours?

Interested in Learning More?
Call Cy Smith   Cell: (603) 667-3104

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