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Great Tire Deal

We have our warranty displayed on a large framed poster on the wall, and we have a delivery brochure that we put every final invoice into and give to the customer when they pick up the car. The brochure is hard copy, folded one time, has our branding on the outside, and inside explains our store warranty and our nationwide Certified Auto Care warranty. BTW, we give a Lifetime warranty on both parts and labor, excluding drivetrain, maintenance, and commercial vehicles.

Also, because we do Lifetime, we have a Lifetime Warranty logo that fits our branding that we use in every marketing piece we do and is displayed in the waiting room.

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We recently switched to the attached. The explanation to my staff is also attached. As it says somewhere, this is not a good thing. 

The real eye opener for me was when i looked at the cost of paying a technician to perform warranty work (minimal) compared to the lost gross profit dollars per billable hour`(substantial), while they are tied up on parts failure related warranty labor.

We are not the "economy" parts kind of shop, and most in our little town would tell you that their is nothing economy about the service we provide. We will no longer be fooling ourselves into believing that a part line is acceptable just because it is the best that any of my suppliers stock. I believe is offering my customers choices, but it is time we share the risks as well. 

We will still be taking care of customers like we always have, but sure hope to minimize the number of third warranties in a 24 month period. 

 

 

Service and Parts Warranty July 2018 dist.docx

New warranty terms as of july 1 2018.docx

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rpllib, 

You are spot on with this, I can't thank you enough for passing this information on, I have been trying to create and plan just like this and your choice of words could not have been better. I assume you are giving permission for others to use this outline?

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Your experience has obviously been different then mine. We are not an econo line shop in any way shape or form and it would be a fair statement that we never use the cheapest part available. We also don't tend to use the very most expensive part available. We have used this methodology for many years with success. . It is my contention that far too many parts that you might labeled as "premium" (which are the majority of parts we use) are nothing of the sort and that it is our suppliers that make the determination of what quality of parts we have available. Many premium lines have far too many instances of early failures. If you are a European or import specialists, you may not be seeing the level of issues we see as general repair shops. My whole point is that we (shop owners)need to demand better quality from our suppliers and stop being most concerned with price. I suspect most experienced shop owners would tell you that it costs you gross profit dollars to use cheap parts. That is just the nature of matrix's. In the meantime, while we wait for quality to reverse direction, this new warranty program seemed like a suitable stop gap. 

Thanks for the reply and another opportunity to clarify my intentions

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On 11/26/2018 at 2:00 AM, Old and Tired said:

3/36 and we never need it. 

never need it as in never have customers return with warranty issues?  is there a secret to this or is it a simple do it right the first time approach?

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Do it right with quality parts but mainly if something is going to go wrong it will happen a lot sooner than 2 or 3 years after the repair but it's good peace of mind for the customer

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As a consumer, the more ways a proprietor puts in place to escape their warranty the less that business builds value or credibility.  If I was at the front counter of a shop that said "We warrant our work and parts for 12 months only unless you actually drive your car," I would not go back and I don't believe that shop would retain a good reputation.  If my shop suffered an excessive number of warranty repairs I would no longer be LYING to my customers by telling them I was using quality parts.  I would not put the liability or responsibility on them for the poor quality of parts that my shop was choosing.  Now I do offer economy parts and I do make the customer aware that they are not of the quality I prefer but as a cost concern option they are available .  I cut my 24 month/24,000 mile warranty for economy grade parts down to 12/12 at most and that is disclosed at the time of offer, not at pick up.  I also don't go to lengths to blame others and pretend it is the customer's fault because they don't want the cost of the original equipment part, which in my area are only covered from the dealer with a 12 month or 12,000 mile warranty.  And they are very strict about not only the time/mileage limitation but also actually warranting the part, because, well you know original equipment parts don't have defects.

 

Bottom line, my warranty is 24 month, 24,000 miles to the original owner family, subject to the part manufacturer's warranty stipulations.  As a NAPA AutoCare Center those conditions are pretty simple, the warranty does not cover accidental or external damage, modifications, installation in applications not listed in the application catalog or incidental or consequential damage, pretty typical warranty conditions.  As for commercial applications, most parts do not have an exclusion or reduction.  In short, the warranty conditions and application seek to be as customer friendly and accommodating as possible. 

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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