kubota warranty flat rate

[sfugate]

I had a dealer do a transmission repair expecting the repair to take 6.5 hours ( Kubotas' published warranty flat rate guide). The result was 8.75 hours, no difficulties occurred, and the dealer tells me that the industry standard is to add 30% to the published guide. My understanding is that most mechanics perform the repair in less time than established by the warranty flat rate guides. I would greatly appreciate any information regarding the "industry standard" for repair times when compared to the Kubota warranty flat rate guide.

 

[CBW1999]

My general understanding is that- If a shop is billing out "book hours" for a job, that is the time billed for, regardless of how long it actually takes.

Keeps a level playing field if on shop says it takes "x" hours another says "y" hours , you chose the "cheapest option" and then you get billed more in the end because it took longer than expected. Also helps authorized repair shops schedule, keep on time and controls expenses on bills and warranty stuff (prevents dawdling on jobs for that extra hour to bill etc).

Fortunately for the consumer, when quoted book hours, they know up front what to expect for a bill. Fortunately for the shop, if the have a really good mechanic, their skill and ability will allow them to do a job in less time. This allows for more jobs to be done in a day/week.

I have never heard of a standard percentage added- that is B.S. Book hours are book hours, if that standard is being followed, that is what should be billed- no more, no less. Can't have the best of both worlds- and that is what it sounds like they want. If they were "allowed" to add 30%time, then that is what should have been quoted in the first place. I highly doubt they refund customers when the job is done under the book hours listed.

In the long run, the shop comes out ahead- which is fine. I think billing book hours is a fair method for operations- if the rules are followed.

I have a buddy who runs an auto shop, he switched over to book hours a while ago. He is now able to give a firm quote on a job- and that is all he bills in the end. The standard he uses specifies to the quarter hour, no rounding up the time.

 

[Big Bri]

now i don't know about tractor repair but my very close friend works for Toyota and he gets paid on "book rate" he usually gets paid for 70 to 80hrs a week when only working 35 to 40. So i would say that it does take less time than book rate. He also told me that if a job calls for 2hrs and it takes him 4hrs he will only get paid for 2. also why would they add 30% if they did it in the time allotted. something sounds fishy.

 

[roamerr]

If it's like cars used to be there was:
- Retail Hours allowed (you took your car in and you paid -- this was hours expected)
- Warranty Hours allowed (this is what car company paid for repair -- always less than retail)
- Actual time repair took.

The actual time and retail hours would be up to 30% different with a good mechanic. The mechanic almost always beats the retail hours allowed. As for warranty time I have heard it was significantly less -- maybe 30% than retail. A good mechanic could meet this time.

My info was from a co-workers husband that worked at a local Ford Dealership for 25 years and retired 10 years ago. I'd ask him for more details but he passed away in 2008. We had this conversation several years ago during a dinner since he stated that the mechanics hated working on "warranty work" since it paid less.


This has me wondering -- are you being asked to pay something on a warranty?

 

[sweettractors]

Something smells fishy about that 30% markup. Book is Book anyway you look at it. I have been in tractor and machinery business over 33 years and never heard of such. BTW, what is the shops hourly rate? Ken Sweet

 

[sfugate]

Ken, Thank you for the response. The shop rate is $78 per hour. Their claim was "The industry standard is to use the warranty flat rate and add 30% to get a real world fair labor amount.". They further state " Warranty flat rate manuals; although hepful do not reimburse the dealer at a fair labor rate. These are determined in laboratory conditions with new equipment that has never seen a field and is brand new.". Is it industry standard to need the 30% above the manufacturers published warranty flat rate ? Thanks, Steve

 

[sfugate]

Thanks for the response. I had a repair, not warranty, performed that resulted in what I thought was an excessive bill. In response to my concern the dealer provided his hours (8.75) and the published Kubota warranty estimate of 6.5 hours. They then justified the difference by stating "The industry standard is to use the warranty flat rate and add 30% to get a real world fair labor amount.". I have yet ot find anyone else who justifies this mark up. I am looking for anyone in the industry that can tell me what is fair.

 

[ultrarunner]

Cummins is flat rate... charged at $149.50 per hour.

 

[RickB]

Thanks for the response. I had a repair, not warranty, performed that resulted in what I thought was an excessive bill. In response to my concern the dealer provided his hours (8.75) and the published Kubota warranty estimate of 6.5 hours. They then justified the difference by stating "The industry standard is to use the warranty flat rate and add 30% to get a real world fair labor amount.". I have yet ot find anyone else who justifies this mark up. I am looking for anyone in the industry that can tell me what is fair.

Folks who draw parallels between the auto industry and off-road equipment industry simply don't have enough information about the off-road equipment business model as dictated by manufacturers. Flat rates are established by equipment manufacturers for the purposes of warranty reimbursement and revenue preservation. Equipment dealers seldom meet published flat-rate times unless many repetitive identical repairs are made, or a safety or liability problem forces the manufacturer to establish a more realistic flat rate. If your repair was performed in 8.75 and the warranty reimbursement time was 6.5, your mechanic did quite well. Unlike the auto industry where warranty work is typically a cash cow, equipment dealers typically write off thousands of dollars per year in unrecoverable warranty labor overruns due to unrealistic flat rates.

Most who read this won't want to believe it, but it is true.

 

[donn12]

With cars, dealerships charge customers more than they would be paid under a warranty repair. A manufacturer limits their expense and often does not give great allowances for time (and money). There is no real standard but 2x warranty is probably average. A dealership is entitled to charge whatever they want for a repair and for the sake of consistency most are a based on warranty time (all the research on the repairs has been done by the manufacturer).
In many states they are required to have an estimate approved in writing before the repair is performed and very few actually complete this step. Bottom line is you should have asked for and or been given a price before the work was done. If they never gave an estimate to you or asked for approval and just fixed your tractor then you should dispute it. If you did approve it before hand and are just upset about the price it does not sound too bad. Look at it this way - Kubota is by far their biggest customer and they give them a 30% discount.