Warranty Work
- Thread starter NH55
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MikePA
Super Moderator
<font color="blue"> That PC stuff does tend to stink a bit.. considering you can talk good about a good dealer.. but not talk bad about a bad dealer... real one-sided.. </font>
PC has nothing to do with it.
PC has nothing to do with it.
Hi Everyone --
Just back from 4 days in New Hampshire with a LOT of seat time. Got a lot done and will be going back the next few months and also have plenty to do here at home. It's good to be back in the saddle.
One thing I do not I believe I mentioned is that when I was talking to the area rep about the original dealer he more or less implied that the reason the dealer loses money on warranty work was because their techs worked on a lot of different machines and never really got "good" at anything so thet could not finish the jobs in the allocated time that New Holland thinks it should take. This came up when I was telling him about my Ford truck which has been to 2 dealers for warranty work (none the selling dealer) and they were both exceptional. His point was that each of these dealers have specialized diesel mechanics etc and that is all they do. I thought it was interesting how he was "protecting" the dealer by asking me to just move the machine and also basically telling me I didn't want them working on it anyway.
Whether any of this is true of not I don't know but it may explain why this dealer did not want to take on the warranty work.
In any case, I'm glad to have it back and hope it stays out the shop for a while. The worst part was listening to the wife pointing out how we are paying for something we couldn't even use. In the 2 months it was gone she came up with about 4 new projects for me, though. Can't wait to get on them.
Just back from 4 days in New Hampshire with a LOT of seat time. Got a lot done and will be going back the next few months and also have plenty to do here at home. It's good to be back in the saddle.
One thing I do not I believe I mentioned is that when I was talking to the area rep about the original dealer he more or less implied that the reason the dealer loses money on warranty work was because their techs worked on a lot of different machines and never really got "good" at anything so thet could not finish the jobs in the allocated time that New Holland thinks it should take. This came up when I was telling him about my Ford truck which has been to 2 dealers for warranty work (none the selling dealer) and they were both exceptional. His point was that each of these dealers have specialized diesel mechanics etc and that is all they do. I thought it was interesting how he was "protecting" the dealer by asking me to just move the machine and also basically telling me I didn't want them working on it anyway.
Whether any of this is true of not I don't know but it may explain why this dealer did not want to take on the warranty work.
In any case, I'm glad to have it back and hope it stays out the shop for a while. The worst part was listening to the wife pointing out how we are paying for something we couldn't even use. In the 2 months it was gone she came up with about 4 new projects for me, though. Can't wait to get on them.
Donnyj
Platinum Member
It is true there are specialized trained techs in dealerships, but at our shop we work on anything. Everytime it is flatrate. Sometimes you win, sometimes you lose as far as getting the job done in the time allowed. Each tech has stronger skills than others in certain areas of repair. I have never heard of refusing to do warranty work. You bought a NH tractor....period. It should be serviced by any NH dealer. Supposed you moved to another state? Then what? Whether it is fair or not in our business if a tech can not produce more hours than his clock hours he is told to pick it up or leave. Flat rate is a tough business. Some dealers are easier than others though. As a customer that is having there vehicle or tractor worked on, it really should not be any concern of theres on whether or not the dealer is making money. I still don't believe dealers don't make any money from warranty work. The customer bought a piece of equipment and bought the warranty that comes along with it. Bottom line is take care of the customer. Take care of them and they will be back, if not they will tell everyone. Just look at this post.... /forums/images/graemlins/shocked.gif
MessickFarmEqu
Super Member
</font><font color="blue" class="small">( I still don't believe dealers don't make any money from warranty work. )</font>
We don't. And our store does have the specialized techs that only work on a limited line of tractors.
We don't. And our store does have the specialized techs that only work on a limited line of tractors.
<font color="blue"> (The customer bought a piece of equipment and bought the warranty that comes along with it.) </font>
That should be the correct perspective from the point of view of the customer, the dealer, and NH. Warranty costs are built into the price the customer pays for the equipment AND the profit the dealer gets from each sale AND the expectation from NH that product failures are a fact of life.
If the dealers are not making money from selling the tractors because of losing money on servicing the warranty, they need to take that up with NH, not with the customers. In the case were legitimate warranty work should be performed (ie not work that is due to operator error), it is NH' decision to: <ul type="square"> [*]a) do nothing and annoy the dealer and the customer, risking the loss of future business from that customer and the loss of a channel to market through that dealer; [*]b) compensate the dealer (note that established dealers with a solid track record of sales and service stand a very good chance of convincing NH to do this); [*]c) compensate the customer (this is highly unlikely to ever happen as it will set a precedent that NH does not want to live with). [/list]
Ultimately, it is a very fine balance that the manufacturer has to make between satisfying their dealers and satisfying their customers. Maintaining this balance in the most effective manner is one of the most significant challenges of the business they choose to be in.
When introducing their Boomer line, NH has apparently chosen to drop their prices below that of much of the competition, although there is a certainly bit of a pricing war going on in the industry now, and pricing is now almost equivalent across different 'major' brands. If any brand raises prices to cover warranty costs, it will scare off a lot of 'value-seeking' customers, and it sends a message that the brand expects there to be a lot of warranty issues due to design defects.
From my perspective, the Boomer is a pretty good design, and it will likely survive in the market for a decade or more, continuing to be improved over time as customers like you and I discover any inherent weaknesses in the design. At the same time, good dealers who honor the perspective stated at the start of this little essay will prosper and grow, while other dealers are likely to close their doors due to pressure from both NH and a declining customer list. As the customer, we get to choose. It takes time, but ultimately, the customer has the final say in terms of who will succeed and who will fail as any business.
Rule #1 in business: The Customer is Always Right
Rule #2 in business: See Rule #1
That should be the correct perspective from the point of view of the customer, the dealer, and NH. Warranty costs are built into the price the customer pays for the equipment AND the profit the dealer gets from each sale AND the expectation from NH that product failures are a fact of life.
If the dealers are not making money from selling the tractors because of losing money on servicing the warranty, they need to take that up with NH, not with the customers. In the case were legitimate warranty work should be performed (ie not work that is due to operator error), it is NH' decision to: <ul type="square"> [*]a) do nothing and annoy the dealer and the customer, risking the loss of future business from that customer and the loss of a channel to market through that dealer; [*]b) compensate the dealer (note that established dealers with a solid track record of sales and service stand a very good chance of convincing NH to do this); [*]c) compensate the customer (this is highly unlikely to ever happen as it will set a precedent that NH does not want to live with). [/list]
Ultimately, it is a very fine balance that the manufacturer has to make between satisfying their dealers and satisfying their customers. Maintaining this balance in the most effective manner is one of the most significant challenges of the business they choose to be in.
When introducing their Boomer line, NH has apparently chosen to drop their prices below that of much of the competition, although there is a certainly bit of a pricing war going on in the industry now, and pricing is now almost equivalent across different 'major' brands. If any brand raises prices to cover warranty costs, it will scare off a lot of 'value-seeking' customers, and it sends a message that the brand expects there to be a lot of warranty issues due to design defects.
From my perspective, the Boomer is a pretty good design, and it will likely survive in the market for a decade or more, continuing to be improved over time as customers like you and I discover any inherent weaknesses in the design. At the same time, good dealers who honor the perspective stated at the start of this little essay will prosper and grow, while other dealers are likely to close their doors due to pressure from both NH and a declining customer list. As the customer, we get to choose. It takes time, but ultimately, the customer has the final say in terms of who will succeed and who will fail as any business.
Rule #1 in business: The Customer is Always Right
Rule #2 in business: See Rule #1
spencer200
Platinum Member
- Joined
- Feb 4, 2002
- Messages
- 994
We dont make a dime on warranty work we have four stores and a full time warranty manager and we still dont make money. Parts are paid at cost and labor paid at your shop rate but only for the hours New Holland thinks are needed not what it actually takes, but I also believe a customer should be able to take his tractor to any New Holland dealer for repairs under warranty and get service.
MikePA
Super Moderator
<font color="blue"> I still don't believe dealers don't make any money from warranty work. </font>
Two dealers have said they do not make money on warranty work. Believe now? /forums/images/graemlins/grin.gif /forums/images/graemlins/tongue.gif
Two dealers have said they do not make money on warranty work. Believe now? /forums/images/graemlins/grin.gif /forums/images/graemlins/tongue.gif
PineRidge
Super Member
I look at a dealer that picks up a customers warranty work as a savvy business man. Once the new dealer treats you right and makes the problem "go-away" you'll then be returning once your machine is out of warranty. Also you'll be visiting the same dealer when you need more implements so how can he possibly lose?
