Well guys let me comment on this subject.
This is a very common issue in the equipment market, more so in the lawn and garden sector because of the box stores.
As a dealer of a Equipment. Most all of our manufactures have contracts that need to be signed before they will do business with you. All of them state warranty policies. It does say that you MUST service and warranty any of their products regardless of where it was purchased.
Now some mfgs will enforce this and some just don't give a crap!
If you ask me I think any dealer that does not take on a warranty job with the foresight of a potential relationship being built for future revenue. Is just a total FOOL.
Let me give you guys a couple good examples...
Had a landscape customer that lived 5 miles from my shop. Every day he came out of his road he made a right turn. He never had any reason to make a left to see our business. So long story short he purchase a new ZTR mower from the dealer in the area of where all of his contracts are. He had several problems with the mower, he got frustrated with the selling dealer and the mfg told him to call us. Well one day he stopped by our store a told us everything that lead him into our store for warranty work. Well after writing 13 more warranties on his machine I finally said enough is enough, We had the mfg buy the customers machine back. They paid everyone of my warranties and also compensated us for the amount of time spent in phone calls and emails.
So I got involved with a customer that never purchased from me before. Well let me tell you this..This landscaper is one of my largest customers for the 3rd year in a row. He has spent well over a $100,000 with us.
Here is another example that had a final out come today!
Customer calls us about his MF that was purchased in FL said he got a letter from MF that his tractor had to have an update.
No problem sir we will take care of it. That was a year ago, since than he has been back for 2 services. Yesterday he came in and told me he wants a bigger machine. Ok, spent some time with him and guess what, We delivered his brand new $30,000 tractor today.
Again I just don't understand any dealer that would turn away work. Yea you don't always come out ahead on warranty work, but I would rather break even on my bills than fall behind because of no income.
I guess that is one of the reason why I have hired 3 more employees since Oct and 1 more coming on in a couple weeks.
We also welcome all warranty work from the box stores.
Here's one that will have you scratching your head. We are a servicing dealer for Ridgid Power tools. We do not sell the tools just do warranty on them. Our shop labor rate is $60 and Ridgid will only pay $45. One might say we are crazy for doing this. Well let me tell you why I do this...Most all of the people that purchase a Ridgid product are the same people that will purchase something I sell. So when that person walks into my show room to get their warranty take care, they see all of what we sell and also all of the services we offer. I'll bet you that 85% of those customers have purchase something from us. So why wouldn't I want to make $45 a hour to have people walk through my showroom. Just to think I spend money on advertising. Silly me!
Okay so back on track here. Yes the mfgs have contracts, Some dealers just don't care.
No we don't always make out of warranty.
If I know a warranty is questionable I will email the mfg. Before I commit to the customer.
Guys even though it doesn't seem this way anymore, ultimately we work for you the customer. You pay my bills. When your happy, my bills will be paid! When your not happy, I will struggle to pay my bills!
Here is our motto that I came up with...
"Walk in as a customer, Leave as a Friend"
