Warranty Work on New Tractors

[Robert_in_NY]

Bill, I wonder if the dealer pushing for warranty jobs is doing so in hopes of when the machine comes in they can sell other services. You know the "well, while we have it here we can change the fluids for you for $$$" or While we were working on your machine we noticed such and such was damaged, we can repair that for you for $$$".

 

[wrenchturner]

Tom is right. Warranty work is a joke. It has been a while since I turned wrenches at new car dealerships but when talking to current techs, warranty work has not changed at all. I once had a warranty rep tell me I had mis assembled a transmission causing a known problem seal to blow for the second time. He was not going to pay me for doing the job a second time. I asked him how many trans he had put together. He said none. I then asked him how he could tell me I had made a mistake when he had never put one together. I told him If he did not pay me for the second seal I would never work for that manufacturer's dealers again. After that battle he paid me. Later the manufacturer came out with an improved design seal.

It should not be that way but it is. The general public has no idea. When diagnosing a problem it is almost as if you walk up to the car, place your hand on it, close your eyes and walla, the diagnosis suddenly appears in your mind. Oh, and of course the parts department has all of the parts in stock and the parts guy instantly hands it to you. No waiting.

Sure some techs beat flatrate. They do this by the magic pen. It is a game of cat and mouse between the techs and the warranty reps. The techs have to be creative in how they write the repairs up. Also, how the repair orders are handed out makes a huge difference. I am sure kickbacks from some techs go to the repair dispatcher so the tech gets the most profitable repair orders which is called gravy work. Also, those guys turning 100+ hrs weekly are cutting lots of corners. Additionally, when a customer pay job is performed the tech routinely over bills the time. I have personally seen customers charged 3 hrs for a job that should have been billed only 1 hr and warranty paid only .5 hr.

The person paying for warranty work really is not the dealer. It is the tech being shorted on time allowances. And you wonder why it is hard to find a competent and honest technician.

 

[Farmwithjunk]

Are things slow there, or are there expectations that things are going to get real slow for them? In this economy, even warranty work pays better than pushing dust around with a broom. If they have good techs that they want to keep, they need to be busy doing something. This analysis has been comparing warranty work to the typical external work order, although not in so many words. In some markets, those are getting fewer and fewer.

Actually, business is still fairly strong in this area. The housing market is remaining stronger than the country as a whole, both Ford plants in the area are less effected by that crisis than some other plants, the farm market here is just what you'd envision for Kentucky.....all about the horses.......or at the very least mostly about horses. That industry is well funded and less likely to quit spending. I'm hearing that this particular Deere dealership is seeing a steady increase in business. (They opened only 3 years ago)

The only explaination I can give for their aggressive efforts to get warranty work from other dealers is simply just to get people coming through their doors.

OR.... Maybe Deere has a different style of honoring warranties. It wouldn't be the first time they did things a little "out of the box".

 

[DavesTractor]

Due to unreasonable flat rate times, warranty work often covers the cost of doing the work and not much more, leaving little or no profit, but generally not causing an actual loss. Often the customer will want some service work and perhaps an implement or something else while his tractor is at the shop, so that helps. We encourage people to bring their tractors to us for warranty so we can build a relationship with the customer. In the long term it pays off, but by itself warranty is not a profit center.

 

[MessickFarmEqu]

I'd guess your Deere dealer is just trying to get machines in the shop. We're between seasons now, and as was said warrenty work is better than pushing a broom around.

 

[WilliamBos]

I'd guess your Deere dealer is just trying to get machines in the shop. We're between seasons now, and as was said warrenty work is better than pushing a broom around.

Yeah. And if you can honestly upsell something, then it is good for you too. The dealers around here seem to really advertise pre-season inspections and maintenance inspections. Never hurts to let them look at it once in a while, just to make sure it won't let you down when you need it.

 

[DonWorrell]

Due to unreasonable flat rate times, warranty work often covers the cost of doing the work and not much more, leaving little or no profit, but generally not causing an actual loss. Often the customer will want some service work and perhaps an implement or something else while his tractor is at the shop, so that helps. We encourage people to bring their tractors to us for warranty so we can build a relationship with the customer. In the long term it pays off, but by itself warranty is not a profit center.

This is true, but I think a dealer without repair service is no dealer at all in the long run.

Don

 

[RickB]

This is true, but I think a dealer without repair service is no dealer at all in the long run.

Don

Yet almost all of us can name high volume, low margin dealers who offer little, or poor service. They typically move a lot of iron based on price. They are tough to compete with on sales, but their customers often find a better source for service.

 

[DavesTractor]

Yet almost all of us can name high volume, low margin dealers who offer little, or poor service. They typically move a lot of iron based on price. They are tough to compete with on sales, but their customers often find a better source for service.

And shame on the manufacturer for allowing this, but what you say is true. If a dealer is going to be a dealer, he needs to step up to the plate and take care of all customers, train his mechanics, buy the special tools needed, etc. A dealer that only sells price and has no shop or service does the brand a disservice in the long run.

 

[pitt_md]

Bill,

From what I understand Deere & Co is looking for 1 owner multiple dealerships. Could this be the beginning of this in your area??

My dealer sells both Kubota and New Holland tractors. They just took on the Kubota's because they are going to merge a couple of stores and move to a new location.