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Posted

Searched and don't see this topic anywhere:

 

What is the average length of time that shops use for labor warranties? We for the most part say it's lifetime on labor because we stand behind our work and if we did it wrong, we'll fix it. But I think that some people (!) would take advantage of that fact and that with some types or repairs or work, past a certain point in time, you couldn't prove labor issue, part issue or wear and tear, so what's an acceptable time frame for both customer and shop? 12k/12 month? Interested in hearing how everyone handles this issue.

Posted

This is something I've thought of a lot as well. Having a strong warranty and using top quality parts is definitely a great selling feature for you.

 

I'm guessing most "rat hole" type shops would run a 3 or 6 month warranty.

From what I've seen, the most common would be a 12/12 warranty.

A premium shop using top quality parts could easily offer 24/24 or even more if using dealer parts.

Posted

thanks appreciate the feedback. We have a large customer base that has a poor history of vehicle maintenance so I am leaning toward 12/12.

Posted

24/24 because we are a part of the Certified Auto Network with Oreilly's. Nationwide and the few times my customers have had to use it on the road, the warranty has worked very well.

Posted

I am 30days on used parts with no labor warranty unless purchased seperately from part supplier (engine, transmissions, rear ends etc).

 

1 Year unlimited miles on brake pads, rotors, starters, alternators, pretty much everything else.

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My cliental can be kind of rough with the working class area I am in. Customers always come back trying to warranty stuff that is unrelated to the repair you did. Example I installed a LKQ motor in a Ford Fusion with a 12 month, 12k warranty purchased from LKQ, covers internal lubricated part. Within a year the Alternator went out, customer wanted it warrantied, and one of the accessories pullies started making noise and they wanted that warrantied. Big fuss over everything, but they act like a warranty is bumper to bumper for the next year.

Posted

Mario - share your pain. Same situation here. You look under the hood and you own it for life. Trying to avoid those arguments with customers. They want the cheap fix with cheap parts and labor, don't maintain the vehicle and then everything that goes wrong is supposed to be on us. Extremely frustrating and discouraging.

  • 2 weeks later...
Posted

We are 12/12 here. If there is a life time warranty on the part, then we will pass that on to the customer, but they need to pay the labor if it is out of warranty.

Posted

A warranty is a positioning statement. It is part of your marketing and risk management. It doesn't matter how long your warranty is, simply factor the cost to cover into cost of operations. Customer perceived coverage is unconditional. If it fails for what ever reason it's on you.

  • 2 weeks later...
Posted

Ive wondered about this in my area. Im 12/12 currently. Thinking of changing it to fit the warranty im given from my suppliers. They have recently changed labor claim warranty to only 90 days. So was considering 90 day labor and 12 parts. But also have considered lifetime warranty options parts and labor. Feedback would be helpful.

Posted

My shop is a NAPA AutoCare Center and NAPA provides a 24 month or 24,000 mile nationwide warranty on most parts. So do I. If the part has a lifetime warranty I extend that to the customer as well and tell them the limited poriton is the part is warranted for the life of their ownership of the vehicle but the labor is covered for months. in the event i lose my sanity and install a used part, 30 day part only, NO LABOR. In the event I go insane and install a customer supplied part, NO WARRANTY WHATOSEVER beyond I did the job right. Starter falls out, I didn't do the job right, starter solenoid stops engaging or the solenoid to starter motor wire corrodes but the starter is mounted tight and the cables are clean and secure, I did the job right no warranty. As an example of course.

Posted

Ive wondered about this in my area. Im 12/12 currently. Thinking of changing it to fit the warranty im given from my suppliers. They have recently changed labor claim warranty to only 90 days. So was considering 90 day labor and 12 parts. But also have considered lifetime warranty options parts and labor. Feedback would be helpful.

If your supplier screws you on labor reimbursement you can do one of three things, eat it in the event of a parts failure, hopefully not very often, build your own warranty costs into your rates or find a better supplier who will stand behind you better. NAPA stands behind their AutoCare Centers for the full term of the warranty. It is reimbursed at a reduced rate, I think it's 75% but that's better than 0%.

Posted

we offer a 12/12 warranty but nobody reads it. If they have a repeat failure within a year they come back anyway and we fix it. If they have a repeat failure anytime we do our best to make it right for them regardless of time/miles. If it's caused by neglect or brother in law tinkering too bad the customer pays, If it's a parts defect we take care of it and try to get a labor claim. Technician workmanship problems usually show up quickly, like immediately :). Bigger jobs like transmissions come with a 3 year manufacturers parts and labor warranty (at a reduced rate of course), we build it into the estimate. Usually if a part has a recurring failure something else is wrong and we learn from it. Some customers expect too much, like they never check tire pressure and never rotate their tires never fix the loose tie rod and broken springs and cry when they don't get the 60k miles they were promised. We don't give charity. Customer supplied parts come with zero warranty - we try our hardest to talk them out of it but if all else fails we accept their diagnosis, install their parts, and take their money, that's it. Funny story we installed a starter for a guy on a F150, he supplied it. Didn't start before or after, just a loud click. We offered to check into it but He knows it all so he had us put in another one. Same result. He really is an expert so he had us install a 3rd one. Before pulling the 3rd junkyard starter I gave some free diagnostic labor and it turns out the AC compressor was locked up solid.Removed the belt and the starter was good again (I can assume the 1st one was good too along with the new battery he installed and a host of new easy to replace parts under the hood someone put in). He was mad we charged him to R&R 3 starters I'm soft so we made a deal but I shouldn't have.

Posted (edited)

We do the 30/30, 30 feet or thrity seconds which ever comes first.....lol. Seriously though we also do the 12/12. No warranty on labor or parts if used even if we supply it. I offer that option to my customer but make sure they understand. After reading some of the situations posted above I see a common situation which can usually be avoided if your service writer/counter person does a good job explaining what is and isn't covered when an job is performed. We all have THOSE customers who expect something for free, but once again my service writer handles those situations easily due to the fact that upon the initial job everything we see is documented on the customer invoice. As for what Alfred just typed, we won't let customers tell us to replace parts without US diagnosing. If they wont pay my diag fee then I don't want them as a customer. I have seen first hand who loses when a customer self diagnoses his vehicle and supplies a part. If it doesn't work then the shop who did the work doesn't feel good about the repair and neither does the customer. Those customer usually leave and give negative publicity. Although it wasn't the shops fault, who pays the price when slandered. My .02c

Edited by Chuck

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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    • By Hands On
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