Dealer All warranty service at purchasing dealer?

[MessickFarmEqu]

This whole warranty thing is another way that the old timers in this business are fighting back. Those who price high and can't deal with what the internet are doing their best to make customers feel like they do not have an option.

I don't think its wrong for dealers to service their own customers first as they do need to protect their interests and local business. I think anyone can understand and accept that. BUT no one should be lecturing you about where you bought your tractor.

 

[gsxr1100]

I agree but that is not the way to win warranty or any business. If I can buy a BX22 (at that time) for a delta of %13.50 and no tax (added up = HUGE SAVINGS; over $3K) either the high dealer is screwing its people or the cheaper guy is not making a huge profit & working on volume. Both dealers are making money it is just how much. Either way, when the dealer asks this and that it puts a negative “taste in my mouth” for that dealer. When this happens, if anyone asks me a good dealer I say do not shop there and waste your hard earned $$$$$.

The kicker is dealers MAKE money on warranty work so why not put a high priority if it is a small job? Make the customer happy and make the dealer some profit? If it is a huge job (not likely) just be honest with him.

When I had my JD I went to R. N. JOHNSON, INC. and they never asked where I bought it nor did they care when I told them. It was worked on ASAP.

 

[DAP]

Hey Daryl ... psssst.... over here.

If I had a nickel for every thread posted about ALL of the big 3 needing warranty work from owners here on TBN for breakdowns or recalls, I have enough for a new NH baler.

/forums/images/graemlins/shocked.gif /forums/images/graemlins/shocked.gif

 

[LarryRB]

"
The kicker is dealers MAKE money on warranty work so why not put a high priority if it is a small job?
You'd have an awful hard time selling me this one.. I know my in laws were Chrysler dealers 40 plus years and I've been to a couple of district re-tool seminars.. Warranty at the factory is just that.. Near perfect conditions and more importantly any tool needed at instant availability.. 99% of the dealers DO NOT have the option of building/maintaining a near perfct set up.. NOR do they have the capitol to instantly buy some expensive tool that saves ten minutes on some project.. Dealers, and I know a few in auto/truck/tractors lose money on warranty claims because none of them have that perfect opportunity available to them.. I know with my in laws and Chrysler/Dodge/IH truck, a factory spec of one hour means a true timing of two hours at their dealership and they had most large tools that other dealers never had.. You forced to pay mechanic for their 2 hrs and get 1 hr reimbursed at a lower wage than the mechanics and usually wait 120 days or so for that credit to be applied.. Try again, to sell me on warranty makes money...

 

[dfeck]

I get sick and tired of people worrying about how much a dealer is making. Warrenty work is money! Period! If they don't like what they get paid then don't sell thier product. I have a Kubota dealer that's been family owned for 50+ years. The property and building is paid for so thier overhead is somewhat low. They still are higher priced then the other newer dealers. You have to "know" them or haggle very hard to get a good price. Don't get me wrong they are great people but they feel thier reputation will sell product. Kinda arrogant but they are making money!

I know multiple people in the car industry. They ALL say the money is in the repair work. Warrenty work is also paid by the manufacturers "book" hours so I don't understand why tractor dealers are angry that they don't get paid that much. I don't believe they're losing money or why would they be in business. My belief is that they're angry because they don't get a 80% profit margin on warrenty. Instead they make 70%! /forums/images/graemlins/blush.gif

 

[ByronBob]

I agree with DAP. You can't not think about the possibility of a warranty issue. To do so is being nieve. My float broke on my FEL with under 10 hours on the tractor. SOMEONE was going to fix it because I only made 1 bloody payment on it.

But if you can't find a local dealer to buy from what do you do. Obviously this dealer doesn't want to cooperate the way he should. But some questions Henny didn't answer are:

Is he the only dealer around?
Was price discussed and compared to other options?

If other options are available then don't loose any sleep over his answer and move on.

 

[MessickFarmEqu]

FYI, yes you can make some profit doing warrenty work. Its not great but there is money there. I think smaller shops make a big stink out of it because its a rather involved process for the dealer to file the claims and get paid. We have two people working full time to do that right now. If your a small shop odds are the person doing that is the shop manager and I am sure he resents the process.

For a dealer/customer relationship I don't think there is a more important area than warrenty work. If you just dropped several thousand dollers on a machine you had better be taken care of if that investment is not working like it should.

 

[dfeck]

Amen brother!!!!!!!!!!!!! /forums/images/graemlins/smile.gif

 

[om21braz]

</font><font color="blue" class="small">( Warranty work generally pays flat-rate book time, which is VERY unreasonable under most circumstances, as it assumes machine has been cleaned/degreased, technician has done the same job before and is familiar with all aspects, all tools are laying out within arm's reach ready to go, all bolts/fasteners will simply undo with no stripped threads or tapping necessary, and that customers will bring in their unit for service.)</font>

I don't know about Kubotas', but it's very hard to "beat the book" time-wise on autos - especially when no time is allowed for diagnostics and Murphy's Law.

 

[Bird]

</font><font color="blue" class="small">( its a rather involved process for the dealer to file the claims and get paid )</font>

I know of a car dealership which had a service manager for awhile that was a likeable guy, pretty knowledgeable mechanic, got along well with both customers and employees, but then they fired him when they realized how much money they were losing. The poor guy had considerably less than a high school education, company policy was to pay mechanics according to the flat rate book, but he was paying them for whatever time they asked for instead, which was sometimes considerably more than the flat rate time. He was making mistakes on the paperwork for warranty reimbursement, and he was failing to follow-up to make sure they received payment from the manufacturer.

So, as you said, and as is the case with many things, there's money to be made if you know what you're doing, and money to be lost if you don't.