Quantcast
Jump to content

Sell your car with CarBrain


Sell your car with CarBrain


Sell your car with CarBrain

PARTS WARRANTY

steve

By steve
in Workflow, Procedures, Shop Forms

 Share

Recommended Posts



autoguy Rising Star

autoguy

Posted
Posted
HELLO ALL

MY NAME IS STEVE , THIS IS MY FIRST DAY AT SCHOOL. SO DONT HARASS ME, I WILL TELL MY MOM.

WHAT DOES EVERYONE DO ABOUT WARRANTY , LABOR, HOW LONG DO YOU WARRANTY, AND DO YOU TRACK IT.

WE ARE A NAPA AUTO CARE CENTER, SEAMS LIKE WARRANTYS HAVE WENT UP, NAPA ONLY COVERS PART AND 75% LABOR, HAVE THOUGHT ABOUT DOING OWN INTERNAL EXTENDED WARRANTY, ANYONE DO THAT?

STEVE

 

 

Hi Steve! We go by a 12 month/12.000 mile warranty as a norm.

 

How do you like the NAPA program, do you find that it is helpful? What do you get out of it?

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
HELLO ALL

MY NAME IS STEVE , THIS IS MY FIRST DAY AT SCHOOL. SO DONT HARASS ME, I WILL TELL MY MOM.

WHAT DOES EVERYONE DO ABOUT WARRANTY , LABOR, HOW LONG DO YOU WARRANTY, AND DO YOU TRACK IT.

WE ARE A NAPA AUTO CARE CENTER, SEAMS LIKE WARRANTYS HAVE WENT UP, NAPA ONLY COVERS PART AND 75% LABOR, HAVE THOUGHT ABOUT DOING OWN INTERNAL EXTENDED WARRANTY, ANYONE DO THAT?

STEVE

 

The most common warranties we offer are either 12/12 or 2/24. We are using them more and more as a way to offer different price options to the customers.

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
So you sell a job with 2/24, at higher price? How do you structure your pricing?

 

Great question. The answer in our case is: "As needed to make the sale."

 

The days of fixed pricing for all services are gone for us.

 

A shop with a stuck tech is no different than a hotel with an empty room. Once the day is gone, that time/room is gone forever.

 

We do what we need to do to fill the room for the night. Today in Michigan if you want to survive you will learn to play hardball...or you will not be in the show for very long. Undercutting competitors has become part of normal day to day operations. We expect this in the hotel industry, but conventional wisdom scoffs at it in our industry...for no logical reason.

 

Adjust the warranty, adjust the price, adjust what is included, adjust the part, etc.

 

If you walk in my front door wanting a deal on a timing belt when I have 2 stuck techs odds are you are going to get a heck of a deal compared to when we are backed up with good jobs.

 

Dynamic pricing can be a great addition to your service advisor's tool box.

Link to comment
Share on other sites
Alex

Alex

Posted
Posted
As part of TECH-NET we warranty our work nationwide, parts/labor for 12,000 miles/12 months. Sonsio is the company that pays the claims. It works well and it gives cusotmers peace of mind for those that do a lot of traveling. The warranty applies to customers who travel farther than 25 miles from your shop. Without TECH-NET there would be a monthly fee for the program, but it's part of the yearly enrollment fee.

 

Joe is talking about this:

 

tnpNationwideWarranty.jpg

 

http://www.technetprofessional.com/

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Tom, I totally agree with that once labor time is lost, it’s lost forever, and that selling something is better than selling nothing. But, are you setting the stage for the constant “let’s make a deal" atmosphere? Survival is one thing, but is this what has happened to our industry? Are there any ways to increase business? Or has the business changed that much?

 

Trust me…I am not judging. I am asking questions. More and more shop owners feel the same way you do.

 

Joe:

 

It's just one more tool in the advisor's tool box to be used when appropriate not unlike so many other industries.

 

Things are a bit different here in Michigan as it has been established numerically that we have been in a one state recession....we started sinking back in 2000 and have never recovered, instead it has progressively become worse each year. 68% of all residential moves here are out of state. We have led the nation in unemployment for years. Many of our counties lead the country in foreclosures....30-40% of them being negative equity forelosures due to collapsing real estate prices.

 

So, we got creative. Lately, GP is up, car count is up, net is up...a lot of this due to new "tactics".

 

Plus, the business is indeed changing. Competition is getting far more sophisticated and will continue to increase.

 

As these things spread beyond the borders of Michigan (already happening from the numbers that I have seen around the country) there will be many sleepless nights for shop owners who think we are nuts to do the things that we do here. They will either see the light or get out...probably the latter for many who just won't accept the changes.

 

If you really want to learn a lot about shop management, come on over to Michigan and give it a try...it could be quite enlightening. ;)

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
I agree with you that many parts of the country are in the same boat, and it will take innovative moves to stay alive in the future.

 

Is there a light at the end of the tunnel? Or is the light another train coming our way?

 

It will likely require more innovation that many are anticipating.

 

The train is coming your way.

 

Key numbers are what shops should currently be looking at, placing costs at the top of the list.

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Where do you see our industry headed? What types of services and repairs will we be seeing in the future?

 

Based on what you see, what does the typical shop need to do in order to saty alive? You mentioned tracking ket numbers and watching costs. In the end, a shop needs income, whcich is driven by sales.

 

Your thoughts?

 

Where the industry is headed at this time looks like it will be primarily driven by the economy. What are the indicators in your area? What do you believe will happen to the U.S. economy over the next year or so?

 

If it worsens significantly, shops will be on ground that has not been seen in this country in many years. Maintenance services will decrease, repairs will increase...and many of the repairs will be things that today we consider unacceptable. Fixing parts instead of replacing them. Used parts could become huge.

 

Net income is primarily driven by the difference between sales and costs, not primarily by sales. There are many shops today who could lose 25% to as much as 75% of their sales while fixing their key numbers and end up with the same or more net and a lot less stress.

 

One needs to first fix the key numbers, then go after sales, but conventional wisdom typically has that backwards.

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
I think you are on the right track Steve. To what market are we trying to attract? The better shops need to postition themselves as pros, not just average. What will set us apart will be the level of service we offer and all the items you mentioned.

 

However, many shop see declining car counts and start to panic.

 

The business is changing and we need to understand what the customer wants and give it to them, but remain profitable. Do more of what is profitable.

 

The key is to adjust to the customer no matter how unconventional a method may seem...and do it in such a way as to maintain decent numbers.

 

I agree with most of the management theories to a point, however if the economy really tanks, all bets are off and many of the management theories will be junk. ;)

Link to comment
Share on other sites
  • 6 months later...
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Has it become more of an issue with the economy the way it is lately or do things seem better???

 

We are making more adjustments and getting more creative in many areas constantly. Overall, it is getting tougher, but so far the changes we are making are working both to retain and increase over 07, although the success is not as great as it was when the stimulus checks were being sent out earlier in the year.

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Do you think people are relunctant to spend out of fear or becuase they are suffering financially?

 

Yes to both....and there are other reasons, also. Every day that goes by more people are awakening to the increasingly likely possibility that the US economy may collapse. Loss of jobs, homes, investments, and all of their other stuff is becoming more real. The end of the era of economic fun and the beginning of a massive change in how the average person in the US lives.

Link to comment
Share on other sites
allimports Rookie

allimports

Posted
Posted
Yes to both....and there are other reasons, also. Every day that goes by more people are awakening to the increasingly likely possibility that the US economy may collapse. Loss of jobs, homes, investments, and all of their other stuff is becoming more real. The end of the era of economic fun and the beginning of a massive change in how the average person in the US lives.

 

I think the commmon consumer is in a state of shock with what they see out there. Fuel and heating oil prices, slumping housing prices, everyday needs such as groceries rising, the failure of large companies needing bail outs, popor ROI within their 401k and private investments.

 

All these things are key indicators for people to do whatever it takes to hold on to their money.

 

The media blows it all up, all the time, all day long. Educating the public on how bad everything is. Would the housing crisis fall as much so fast if teh media wasn;t all over it every day?

 

It will be very interesting to see what happens this winter, some will not be able to afford to heat thei homes.

Link to comment
Share on other sites
Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
I think the commmon consumer is in a state of shock with what they see out there. Fuel and heating oil prices, slumping housing prices, everyday needs such as groceries rising, the failure of large companies needing bail outs, popor ROI within their 401k and private investments.

 

All these things are key indicators for people to do whatever it takes to hold on to their money.

 

The media blows it all up, all the time, all day long. Educating the public on how bad everything is. Would the housing crisis fall as much so fast if teh media wasn;t all over it every day?

 

It will be very interesting to see what happens this winter, some will not be able to afford to heat thei homes.

 

Actually, the media has been and still is under reporting this to the extreme. The math of the economy is far worse than most people realize.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      Hey Boss, Are You Approachable?
      By Joe Marconi in Joe's Blog
         2 comments
      My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
      If you are a shop owner, you are a leader. And leaders must be approachable. That means that you are willing to hear the concerns of others and have them express themselves. It also means that while you may not agree with someone’s perspective on an issue, it is their perspective, and that viewpoint needs to be recognized and respected.
      Make it known that you want to hear the opinions of others. Literally, ask for input from others. And thank those that speak up. Now, I am not saying that you need to act on every concern or opinion. That would not be realistic. But just listening may be enough. And you never know, someone in your company may have an idea that you never thought about and even improve your business.

  • Similar Topics

    • Joe Marconi
      Could your Auto Repair Shop survive an OSHA inspection?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Joe Marconi
      There's No One Size Fits All Repair Shop Business Model
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      Stop Stopping - The Auto Repair Marketing Podcast
      By carmcapriotto
      Some years back I took part in a boot camp for businessmen where they physically and mentally beat us down. My big takeaway was to “stop stopping”. It doesn’t matter if we’re talking about marketing, coaching, growing a business, learning, dieting, working out, or whatever. We all need to stop stopping.
      Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
      Show Notes with Timestamps
      Stop Stopping (00:00:01) Brian introduces the topic of "stop stopping" in business growth and shares personal experiences from a boot camp for executives. The Roller Coaster of Marketing (00:02:04) The challenges of marketing for a local agency and the negative impact of starting and stopping marketing efforts. The Importance of Consistency (00:03:44) The need to stop stopping in various aspects of business, including marketing, inspections, and tracking KPIs. Stop Stopping (00:08:56) Brian discusses his struggle with weight loss and the importance of not stopping in order to achieve better results. Keep Going (00:09:48) The need to continue taking action in business and not stopping in order to achieve growth and success. Scaling Back (00:10:40) Brian suggests various strategies for handling an overwhelming amount of business, such as raising prices, expanding the shop, or opening a second shop.  
       
       
      How To Get In Touch
      Group - Auto Repair Marketing Mastermind
      Website - shopmarketingpros.com 
      Facebook - facebook.com/shopmarketingpros 
      Get the Book - shopmarketingpros.com/book
      Instagram - @shopmarketingpros 
      Questions/Ideas - [email protected]
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio
    • Changing The Industry
      A #scamTargeting Auto Repair Shop Customers
      By Changing The Industry
      A #scamTargeting Auto Repair Shop Customers
    • Fast Free Shipping on All Orders Over $50
    • nptrb
      6 Common Financial Statement Issues In Auto Shops (And How To Fix Them!)
      By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.



  • nptrb

    6 Common Financial Statement Issues In Auto Shops (And How To Fix Them!)

    By nptrb, in Automotive Industry,

    0 comments 76 views
    Joe Marconi

    There's No One Size Fits All Repair Shop Business Model

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 43 views
    Joe Marconi

    Vehicle Delivery Process: The First Step to Your Next Sale

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 122 views

  • Our Sponsors


Sell your car with CarBrain


Sell your car with CarBrain


Sell your car with CarBrain

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...