Warranties and comebacks

[chadillac]

New member here seeking advice. How does everyone handle a warranty issues with your techs? Do you pay them warranty time via alldata? Don't pay them at all? If a part fails, then the supplier covers the parts and depending on the supplier, sometimes labor. Do you make up the difference to the tech? Or is the techs responsibility and duty not to ask for the warranty pay? Any suggestions would help. Thanks in advance

[tyrguy]

Pretty simple really. If it's the tech's fault, he works for free. If it's not his fault, he's paid to redo the job at regulars hours. We offer a 24 mi/24 mo parts and labor warranty. Other than dealer oem parts we make our suppliers pay for parts and labor [at 75% labor rate] within that period.

[mmotley]

  On 9/21/2016 at 1:58 PM, tyrguy said:

Pretty simple really. If it's the tech's fault, he works for free. If it's not his fault, he's paid to redo the job at regulars hours. We offer a 24 mi/24 mo parts and labor warranty. Other than dealer oem parts we make our suppliers pay for parts and labor [at 75% labor rate] within that period.

How the heck are you getting your parts supplier to pay 75% of labor rate?

[tyrguy]

Develop the relationship. We don't jump around and buy parts from multiple suppliers. We use our first call supplier [10k per mo] for everything unless we absolutely have to go elsewhere. He knows this and responds accordingly. We average about 2 labor claims a month with him. I have another supplier [2k per mo] that we use that supposedly doesn't pay labor claims. If we have one with him [once a year] and he balks, I just tell him that I'll instruct my guys to cease doing business with them immediately. It works.

[mmotley]

Is it the part manufacturers who are paying you for the labor or the supplier?

[tyrguy]

Some are Sonsio. The others, I don't know if the manufacturer or my supplier is paying. Doesn't matter to me as long as I get a credit. My point of view is I don't buy from the manufacturer, I buy from my supplier. How he gets it handled is his problem.

[Jgelby]

That's an amazing service your parts supplier provides. I do 40k plus/month with Carquest, and they pay us $45/hour labor on warranty parts replacement inside of six months. It's almost not worth the effort when it happens(making a phone call, faxing/emailing previous/current invoices). I think it's time to have a conversation with my rep, though I'm not crossing my fingers. Does anyone else have similar warranty terms with their parts suppliers as tyrguy?

[babyhydro]

Auto zone pays 100% labor claims if you do at least 1000 WK with them

[ATLAuto]

  On 9/21/2016 at 1:58 PM, tyrguy said:

Pretty simple really. If it's the tech's fault, he works for free. If it's not his fault, he's paid to redo the job at regulars hours. We offer a 24 mi/24 mo parts and labor warranty. Other than dealer oem parts we make our suppliers pay for parts and labor [at 75% labor rate] within that period.

 

Same. You should never make a tech install a failed part again for free.

 

  On 9/29/2016 at 12:48 AM, babyhydro said:

Auto zone pays 100% labor claims if you do at least 1000 WK with them

 

Didn't know that. Although, we do not buy much from AZ at all.

 

I'd like to see a summarized list of each supplier and what their labor claim policy is. For my part, I know WorldPac pays zero labor. Same with NAPA.

[xrac]

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[tyrguy]

NAPA is our main supplier that pays those labor claims.

[ATLAuto]

  On 9/30/2016 at 2:07 AM, xrac said:

Our NAPA pays labor claims.

100% labor rate?

[xrac]

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[3PuttFever]

  On 10/1/2016 at 1:25 PM, ATLAuto said:

100% labor rate?

No one pays 100%. But if you get more per hour labor reimbursement on a claim than what your Tech was paid you're covered - where I feel it gets tricky is if the 2 hour job at full labor rate is now being paid at 75% at 4 hours. You're never money ahead, though, because of lost opportunity on a job paying positively. Looking at it from a doing what's right for the customer and what will it take to get them satisfied and returning for another service visit is the perspective view.