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Parts and Labor Warranty


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Guys- forgive me if there's already an existing thread somewhere re this topic...also, bear with my lack of general knowledge on running a shop...I'm new at this....

 

Anyway, I'm the primary investor in an independent shop specializing in import service, primarily BMW and Mercedes. We purchase most parts from non-chain suppliers like Worldpac or, in our case, small niche suppliers of import parts.

 

Yesterday we had a car come back with a bad motor mount that we had installed last October. Installation was fine- the

part was new but failed due to poor quality. The supplier will warranty the part but we essentially lost money by tying up a lift to replace it w/out being able to charge the labor. What do you do to keep this from happening?

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This is one of the reasons to make sure your charging enough for your parts and labor to cover things that happen like this. I know Oreilly's where I get most of my parts from will pay labor claims if the part fails in their warranty time. Its not much but at least I can pay the tech for the repair and not have to eat that part.

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I had the same thing happen to me. We purchased a power steering hose (high pressure) and installed it in a vehicle and about a week later the customer came back stating it was leaking. We saw that it was leaking in the fitting so we replaced it. About a week later, the customer comes back again stating it is leaking again. The customer asked us where we purchased the hose from and we state Carquest. He asked if we could try another vendor, so we try Napa. We install the part and the customer never saw a leak again.

 

When we tried to claim a labor claim for the defective part from Carquest, they state that the line was pressure tested and came back with no negative results so they would NOT issue any labor claim payment. Haven't heard anything back for the 2nd hose but it seems unlikely that they will honor their labor claim. Ever since this incident, we have tried to not use as many Carquest parts as it seems as though they won't stand behind their parts.

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This is why I like AutoZone for most of our parts. Although I haven't had many issues with parts, when I do, they replace the part and credit our account for the labor with very little hassle. Items like alternators, starters, struts, shocks etc... are 100% labor reimbursement.

 

We also use Car Parts Warehouse. They have good prices, but all warranty claims are through the manufacture which can be a pain.

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  • 3 weeks later...

Memphis Rob---- Have you checked with Worldpac? I have used them for years. We specialize in MB, BMW, Saab, and Jag. They are my #1 supplier. I asked my parts manager about labor reimbursement and he said he has never asked. I wanted to see if you have and what answer you got if you did check with them.

 

I also wouldnt mind if we maby started a new thread discussing tools used for Euro cars. If you want to go into it or have a guy at your shop that would be more knowledgable I would love to discuss because I have bought what I feel is junk lately to save a few bucks and really hate myself right now.

 

Thanks,

Joseph

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Comebacks will eat into your profits, especially in today’s world. Part companies handle labor differently around the country. But the fact remains that when we have part failure, someone pays for it, and when it’s the shop owner, profits are lost.

 

We track on a spreadsheet all comebacks and designate: Part failure, tech error or other. We track each vendor for part issues and will track the percentage from each supplier. When we see part trends, we bring this to the attention of the supplier. The spreadsheet will also tell tech error and track their comeback ratio. It may seem like a lot of work, but warranty must be added to your cost of doing business. Let’s say you account for a 2% warranty for your Cost of Doing Business, and you see an increase to 4%, you need to analyze this to find the problem. Is it a part issue, or part line issue? Is it a tech problem? Either way, knowing this information can help you correct it.

 

I would recommend sitting down with your supplies and let them know you will be tracking part comebacks and come up with an agreeable labor claim arrangement, if you can’t come to an agreement, it’s time to look for a new supplier.

 

If you have a tech comeback problem, find out the reason: Training? Procedure issues? Sloppiness? Other?

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