Warranty Work

[MikePA]

I agree.

It's the difference between a dealer who wants to sell a tractor and one who wants to gain a customer.

 

[Donnyj]

I believe Pine Ridge is the only person who has the right outlook on warranty work. I agree not every warranty job is a money maker, but the satisfied customer that gets his work done is more likely to spend money with the dealer that took care of him. It is called looking past the end of your nose. /forums/images/graemlins/grin.gif Believe me, I understand about the short comings of warranty work. Over 20 years of it and it gets harder and harder. Warranty work has actually declined. I don't relay to my customers that I just lost money working on there vehicle. I thank them for coming in, and ask that the next time they ask for me by name. Years later they come in and ask for me by name, out of warranty and I have gained there trust by repairing there vehicle when it was under warranty without complaining. The warranty work was just a opportunity for me to gain a customer. I looked past the end of my nose. That is how warranty work can be profitable. So to answer your question Mike Pa, the dealers that don't know how to gain a customer, no they don't make money now or later. Take care of a customer and those are the dealers that are successful. It sometimes starts with warranty work.

 

[MikePA]

<font color="blue">That is how warranty work can be profitable. </font>
Perhaps it's a semantics issue and certainly no offense meant, but the question was not gaining customers or making money eventually from a customer by treating them right so they return. All important issues, by the way, with which I agree.

The question was warranty work and whether dealers make money on it. The answer to that question, from 2 dealers is, no, dealers do not make money directly from warranty work.

 

[jgh]

20050907

My 2¢ worth:
The dealer near me that I have been dealing with for a while told me he makes 75% of his profit on parts and service, balance on selling machines. He is about to take full title to his store after going thru the New Holland "new dealer prop up" program (my terminology), where NH put up the bucks to buy the place and he has gradually bought them out over about 10 years or so.

He did not mention hating warranty work, and he went to bat for me at least once on a past-warranty claim, got me some help.

I like the guy but we're having some current "issues" so I won't mention his name here.

Let me toss in one other interesting (I hope) story:
Theros Eq (not the dealer mentioned above) in Fredericksburg put an Alo loader on my TN90F (which I had bought elsewhere, long story) several years ago on the basis of X hours to do it, flat for labor. When the time almost doubled, Theros did not fuss with me, they went back to Quicke and got some compensation from them. To my knowledge I am on good terms with them to this day (they are just a bit far away for me to go to normally).

Gee, I was pleased but thought that was the way things SHOULD work.

Jim
Mt Burgha Farm on the Rivanna in VA

ps--Though I am a CPA not a lawyer, I believe fear of a lawsuit where the facts are even close to as '55 stated is uncalled for. The junk that could be "discovered" by your defense atty would put fear in any corporate heart. I just don't believe any big corp or its dealer would sue over the kind of posts I saw here even if their name was mentioned unless the poster was lying down to his toes and TRYING to cause the dealer/corp harm (remember the issues in Absence of Malice starring Paul Neuman, et al?). Hey, don't forget I'm no lawyer! And maybe Muhammad's atty has told him things. Outta gas, heading to sleep, gotta pick up sq bales tomorrow (oops, today). YMMV!

Oh, and just one more thing. If Mark Chalkley ever gets a law license.... /forums/images/graemlins/shocked.gif /forums/images/graemlins/shocked.gif /forums/images/graemlins/crazy.gif /forums/images/graemlins/tongue.gif
/forums/images/graemlins/wink.gif