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How does dealer get paid on warranty work?

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Old 01-22-2018, 03:59 PM
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Default How does dealer get paid on warranty work?

Does the dealer get re-imbursed by HD for warranty work performed? it seems that an easy issue to fix, one needs to go back for several visits...I Diagnosed the issue, told them what part to switch out and yet it's not the part that was swapped in two different/same issue visits. Now I need to back for a third time. WTF ????
They replaced probably a very expensive computer module when a sensor was that was needed to change.
 
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Old 01-22-2018, 04:36 PM
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Originally Posted by giacomo56
Does the dealer get re-imbursed by HD for warranty work performed? it seems that an easy issue to fix, one needs to go back for several visits...I Diagnosed the issue, told them what part to switch out and yet it's not the part that was swapped in two different/same issue visits. Now I need to back for a third time. WTF ????
They replaced probably a very expensive computer module when a sensor was that was needed to change.
Could be the dealership or MoCo. Dealer gives information to MoCo and they tell them what to do. Many times MoCo doesn't have a clue.
 
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Old 01-22-2018, 05:16 PM
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Yes, the manufacturer pay the dealer for warranty repairs. There is usually a manufacturer fix for things. In your case, it could be MOCO telling the dealer what to do, or could be the dealer just fixing it and screwing up; in which case manufacturer could deny the dealer reimbursement.
 
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Old 01-23-2018, 01:49 PM
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Well, it's easy. You have a flat rate book, and parts cost %. First you start an R.O. with the customers complaint and the diagnosis. Normally only large jobs need a pre-authorization. The labor operation has a code and a flat rate paid. The factory pays the dealer less in hourly rate than you normally pay. Then they have a set mark up on parts paid to the dealer. The R.O. is entered into the factories payment system and when approved the dealer is issued a credit memo. Removed parts may go back to the MOCO for inspection or held at the dealership for the area rep to look at. Some parts go back to the vendor and they foot the bill for their bad parts.

When I did this at a dealer, we were paid and established going rate for labor and 35% on parts, plus a set fee for fluids, shop supplies and Haz-Mat.

For the sake of argument, A job you would pay $100 bucks for the factory pays the dealer $85.00. ALL rates may very by manufacturer and even region.
 
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Old 01-23-2018, 02:11 PM
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Speaking from the automotive dealer side, the dealer will pay the warranty repair to a set flat rate. Also, sometimes there is a Technical Service Bulletin, that has the details of the repair along with the Flat rate time. If the tech installed a module when it needed a sensor, he/she may have been going for the higher paying warranty job (greed) then figure, if it doesn't fix it, they will throw the sensor at it when it comes back. A highly skilled warranty tech would have figured a way to write up both the module and sensor under one repair order. You have to be a good storyteller, because the MoCo wants to know how you figure both the module and sensor went bad simultaneously.
 
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Old 01-23-2018, 02:26 PM
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Originally Posted by Super Glidester
Speaking from the automotive dealer side, the dealer will pay the warranty repair to a set flat rate. Also, sometimes there is a Technical Service Bulletin, that has the details of the repair along with the Flat rate time. If the tech installed a module when it needed a sensor, he/she may have been going for the higher paying warranty job (greed) then figure, if it doesn't fix it, they will throw the sensor at it when it comes back. A highly skilled warranty tech would have figured a way to write up both the module and sensor under one repair order. You have to be a good storyteller, because the MoCo wants to know how you figure both the module and sensor went bad simultaneously.
So true, a good BS narrative works. I hated Techs that couldn't write a good R.O.
 
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Old 01-25-2018, 09:33 AM
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Flat rate time depending on the repair.
 
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