How does dealer get paid on warranty work?
#1
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.
They replaced probably a very expensive computer module when a sensor was that was needed to change.
#2
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.
They replaced probably a very expensive computer module when a sensor was that was needed to change.
#3
#4
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.
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.
#5
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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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LXT (01-24-2018)
#6
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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