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PARTS WARRANTY

steve

By steve
in Workflow, Procedures, Shop Forms

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autoguy Rising Star

autoguy

Posted
Posted
HELLO ALL

MY NAME IS STEVE , THIS IS MY FIRST DAY AT SCHOOL. SO DONT HARASS ME, I WILL TELL MY MOM.

WHAT DOES EVERYONE DO ABOUT WARRANTY , LABOR, HOW LONG DO YOU WARRANTY, AND DO YOU TRACK IT.

WE ARE A NAPA AUTO CARE CENTER, SEAMS LIKE WARRANTYS HAVE WENT UP, NAPA ONLY COVERS PART AND 75% LABOR, HAVE THOUGHT ABOUT DOING OWN INTERNAL EXTENDED WARRANTY, ANYONE DO THAT?

STEVE

 

 

Hi Steve! We go by a 12 month/12.000 mile warranty as a norm.

 

How do you like the NAPA program, do you find that it is helpful? What do you get out of it?

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
HELLO ALL

MY NAME IS STEVE , THIS IS MY FIRST DAY AT SCHOOL. SO DONT HARASS ME, I WILL TELL MY MOM.

WHAT DOES EVERYONE DO ABOUT WARRANTY , LABOR, HOW LONG DO YOU WARRANTY, AND DO YOU TRACK IT.

WE ARE A NAPA AUTO CARE CENTER, SEAMS LIKE WARRANTYS HAVE WENT UP, NAPA ONLY COVERS PART AND 75% LABOR, HAVE THOUGHT ABOUT DOING OWN INTERNAL EXTENDED WARRANTY, ANYONE DO THAT?

STEVE

 

The most common warranties we offer are either 12/12 or 2/24. We are using them more and more as a way to offer different price options to the customers.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
So you sell a job with 2/24, at higher price? How do you structure your pricing?

 

Great question. The answer in our case is: "As needed to make the sale."

 

The days of fixed pricing for all services are gone for us.

 

A shop with a stuck tech is no different than a hotel with an empty room. Once the day is gone, that time/room is gone forever.

 

We do what we need to do to fill the room for the night. Today in Michigan if you want to survive you will learn to play hardball...or you will not be in the show for very long. Undercutting competitors has become part of normal day to day operations. We expect this in the hotel industry, but conventional wisdom scoffs at it in our industry...for no logical reason.

 

Adjust the warranty, adjust the price, adjust what is included, adjust the part, etc.

 

If you walk in my front door wanting a deal on a timing belt when I have 2 stuck techs odds are you are going to get a heck of a deal compared to when we are backed up with good jobs.

 

Dynamic pricing can be a great addition to your service advisor's tool box.

Alex

Alex

Posted
Posted
As part of TECH-NET we warranty our work nationwide, parts/labor for 12,000 miles/12 months. Sonsio is the company that pays the claims. It works well and it gives cusotmers peace of mind for those that do a lot of traveling. The warranty applies to customers who travel farther than 25 miles from your shop. Without TECH-NET there would be a monthly fee for the program, but it's part of the yearly enrollment fee.

 

Joe is talking about this:

 

tnpNationwideWarranty.jpg

 

http://www.technetprofessional.com/

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Tom, I totally agree with that once labor time is lost, it’s lost forever, and that selling something is better than selling nothing. But, are you setting the stage for the constant “let’s make a deal" atmosphere? Survival is one thing, but is this what has happened to our industry? Are there any ways to increase business? Or has the business changed that much?

 

Trust me…I am not judging. I am asking questions. More and more shop owners feel the same way you do.

 

Joe:

 

It's just one more tool in the advisor's tool box to be used when appropriate not unlike so many other industries.

 

Things are a bit different here in Michigan as it has been established numerically that we have been in a one state recession....we started sinking back in 2000 and have never recovered, instead it has progressively become worse each year. 68% of all residential moves here are out of state. We have led the nation in unemployment for years. Many of our counties lead the country in foreclosures....30-40% of them being negative equity forelosures due to collapsing real estate prices.

 

So, we got creative. Lately, GP is up, car count is up, net is up...a lot of this due to new "tactics".

 

Plus, the business is indeed changing. Competition is getting far more sophisticated and will continue to increase.

 

As these things spread beyond the borders of Michigan (already happening from the numbers that I have seen around the country) there will be many sleepless nights for shop owners who think we are nuts to do the things that we do here. They will either see the light or get out...probably the latter for many who just won't accept the changes.

 

If you really want to learn a lot about shop management, come on over to Michigan and give it a try...it could be quite enlightening. ;)

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
I agree with you that many parts of the country are in the same boat, and it will take innovative moves to stay alive in the future.

 

Is there a light at the end of the tunnel? Or is the light another train coming our way?

 

It will likely require more innovation that many are anticipating.

 

The train is coming your way.

 

Key numbers are what shops should currently be looking at, placing costs at the top of the list.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Where do you see our industry headed? What types of services and repairs will we be seeing in the future?

 

Based on what you see, what does the typical shop need to do in order to saty alive? You mentioned tracking ket numbers and watching costs. In the end, a shop needs income, whcich is driven by sales.

 

Your thoughts?

 

Where the industry is headed at this time looks like it will be primarily driven by the economy. What are the indicators in your area? What do you believe will happen to the U.S. economy over the next year or so?

 

If it worsens significantly, shops will be on ground that has not been seen in this country in many years. Maintenance services will decrease, repairs will increase...and many of the repairs will be things that today we consider unacceptable. Fixing parts instead of replacing them. Used parts could become huge.

 

Net income is primarily driven by the difference between sales and costs, not primarily by sales. There are many shops today who could lose 25% to as much as 75% of their sales while fixing their key numbers and end up with the same or more net and a lot less stress.

 

One needs to first fix the key numbers, then go after sales, but conventional wisdom typically has that backwards.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
I think you are on the right track Steve. To what market are we trying to attract? The better shops need to postition themselves as pros, not just average. What will set us apart will be the level of service we offer and all the items you mentioned.

 

However, many shop see declining car counts and start to panic.

 

The business is changing and we need to understand what the customer wants and give it to them, but remain profitable. Do more of what is profitable.

 

The key is to adjust to the customer no matter how unconventional a method may seem...and do it in such a way as to maintain decent numbers.

 

I agree with most of the management theories to a point, however if the economy really tanks, all bets are off and many of the management theories will be junk. ;)

  • 6 months later...
riverwest auto Newbie

riverwest auto

Posted
Posted
So you sell a job with 2/24, at higher price? How do you structure your pricing?

tom got it!!

 

adjust or fail...

 

do whatever it takes a sale is a sale.

 

we usually fall back on mfg warranty but never tell customer beyond 1 year parts and labor.

autoguy Rising Star

autoguy

Posted
Posted
tom got it!!

 

adjust or fail...

 

do whatever it takes a sale is a sale.

 

we usually fall back on mfg warranty but never tell customer beyond 1 year parts and labor.

 

As I stated in my earlier post, same here 1 year.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Has it become more of an issue with the economy the way it is lately or do things seem better???

 

We are making more adjustments and getting more creative in many areas constantly. Overall, it is getting tougher, but so far the changes we are making are working both to retain and increase over 07, although the success is not as great as it was when the stimulus checks were being sent out earlier in the year.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
Do you think people are relunctant to spend out of fear or becuase they are suffering financially?

 

Yes to both....and there are other reasons, also. Every day that goes by more people are awakening to the increasingly likely possibility that the US economy may collapse. Loss of jobs, homes, investments, and all of their other stuff is becoming more real. The end of the era of economic fun and the beginning of a massive change in how the average person in the US lives.

allimports Rookie

allimports

Posted
Posted
Yes to both....and there are other reasons, also. Every day that goes by more people are awakening to the increasingly likely possibility that the US economy may collapse. Loss of jobs, homes, investments, and all of their other stuff is becoming more real. The end of the era of economic fun and the beginning of a massive change in how the average person in the US lives.

 

I think the commmon consumer is in a state of shock with what they see out there. Fuel and heating oil prices, slumping housing prices, everyday needs such as groceries rising, the failure of large companies needing bail outs, popor ROI within their 401k and private investments.

 

All these things are key indicators for people to do whatever it takes to hold on to their money.

 

The media blows it all up, all the time, all day long. Educating the public on how bad everything is. Would the housing crisis fall as much so fast if teh media wasn;t all over it every day?

 

It will be very interesting to see what happens this winter, some will not be able to afford to heat thei homes.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
I think the commmon consumer is in a state of shock with what they see out there. Fuel and heating oil prices, slumping housing prices, everyday needs such as groceries rising, the failure of large companies needing bail outs, popor ROI within their 401k and private investments.

 

All these things are key indicators for people to do whatever it takes to hold on to their money.

 

The media blows it all up, all the time, all day long. Educating the public on how bad everything is. Would the housing crisis fall as much so fast if teh media wasn;t all over it every day?

 

It will be very interesting to see what happens this winter, some will not be able to afford to heat thei homes.

 

Actually, the media has been and still is under reporting this to the extreme. The math of the economy is far worse than most people realize.

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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      Matt reflects on the idea of self-awareness and balance, emphasizing that "everything comes from you" and that we are all part of a larger matrix of experiences and growth.
      Vision Conference Recap:
      Matt shares his experience at the Vision Conference, where he faced a challenging drive through a snowstorm and crosswinds to get there. He highlights the hands-on training sessions he participated in, including: Key Cutting and Programming Class: Co-taught with Andrew Sexton, where attendees got to physically cut keys and program them using a Honda ignition system. Pico Training: A full day of hands-on training with Scott Shotton, focusing on practical, car-side diagnostics. Tech Talks: Featuring Garrett Jacobson (HP Tuners) and Zeb Beard (Thermal Imaging), both of whom delivered high-energy, informative sessions.
      Key Takeaways from Vision:
      HP Tuners: Matt learned new functionalities of the tool, even after using it for over five years. Garrett Jacobson’s class demonstrated how intuitive and powerful the tool can be for diagnostics. Thermal Imaging: Zeb Beard emphasized the importance of using thermal imagers regularly, even when it doesn’t seem immediately necessary. His session focused on diesel diagnostics but applied to all vehicles.
      Personal Reflections and Connections:
      Matt shares heartfelt moments from the conference, including dinners with industry friends like Dan Baumgartner, Matt Hall, Kevin Looney, and others. They reminisced about Harvey Chan, a beloved figure in the industry who passed away too soon, and the impact he had on everyone. Matt reflects on the duality of emotions—being sad about losing someone but happy to share stories and memories.
      Behind-the-Scenes Stories:
      Matt dives into the importance of understanding the "behind-the-scenes" of how things are created, whether it’s a business, a movie scene, or even a professional wrestling match. He shares an iconic wrestling story about Stone Cold Steve Austin and Bret Hart, highlighting how collaboration and trust led to one of the most memorable moments in wrestling history.
      Themes of Authenticity and Sharing Knowledge:
      Matt discusses the tendency in the industry to want to feel "special" or to exaggerate success stories. He emphasizes the importance of being honest about how things are achieved, whether it’s diagnosing a tough problem or building a successful shop. He encourages technicians and shop owners to share their real stories, even if they involve luck or being in the right place at the right time.
      Filling Your Own Bucket:
      Matt reflects on the need for self-validation and filling your own "bucket" rather than constantly seeking external validation. He stresses the importance of being honest with yourself and others, giving credit where it’s due, and taking pride in your work without exaggeration.
      Key Quotes:
      "Set the freaking thermal imager on your diagnostic cart and start using it, even when you don’t know why." "At some point, you’re going to have to fill your own cup. You’re going to have to be content with yourself." "The real stories, if somebody could tell them, didn’t take away from the magic. It’s the art, the craftsmanship, the creativity that’s magical."
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      The Aftermarket Radio Network
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Click to go to the Podcast on Remarkable Results Radio
    • carmcapriotto
      Preparing for May's Marketing [E143] - The Auto Repair Marketing Podcast
      By carmcapriotto
      Want to make your shop’s marketing stand out this May? Join Brian Walker and Caroline LeGrand as they break down creative ways to engage your audience, plan your content, and connect with your community.
      In this episode, they’ll share creative campaign ideas, fun social media prompts, and practical ways to highlight your team, engage customers, and boost brand awareness. Plus, get inspiration for using national holidays like National Skilled Trades Day, Road Trip Day, and even Pizza Party Day to keep your content fresh and relevant.
      Don’t miss this opportunity to simplify your marketing and make a real impact. Tune in now and start planning content that connects!
      Thank you to our friends at RepairPal for providing you this episode. RepairPal is the key that unlocks more business for your repair shop. Learn More at RepairPal.com/shops. 
      AppFueled makes marketing easy. It’s a CRM designed for auto repair shops with tools like segmentation, reminders, and even a call center. Don’t wait—get started today at appfueled.com
      Lagniappe (Books, Links, Other Podcasts, etc)
      Days of the Year
      National Calendar 
      Show Notes with Timestamps
      Introduction to the Episode (00:00:01)  Brian and Caroline introduce the podcast and thank RepairPal for their support. Preparing for May Marketing (00:01:16)  Discussion on planning marketing strategies for May, emphasizing the importance of advance preparation. General Marketing Themes (00:02:00)  Overview of summer-related topics, tax return spending, and pre-trip inspections for vehicles. Motorcycle Safety Awareness Month (00:03:17)  Highlighting the importance of motorcycle safety and tips for drivers and riders. Military Appreciation Month (00:03:39)  Encouraging auto repair shops to give back to military personnel throughout May. Teacher Appreciation Week (00:04:34)  Ideas for showing gratitude to teachers, including small gestures and discounts. National Pet Week (00:05:50)  Encouragement to engage customers by sharing pet photos on social media. Celebrating Various Appreciation Weeks (00:07:05)  Discussion on multiple appreciation weeks in May and the importance of selecting key themes. Learn to Ride a Bike Day (00:08:04)  Suggestions for community engagement by helping kids learn to ride bikes. National Skilled Trades Day (00:09:00)  Promoting skilled trades and hosting events to educate youth about automotive careers. Star Wars Day (May the 4th) (00:10:26)  Fun marketing ideas related to Star Wars Day for engaging customers. National Odometer Day (May 12th) (00:11:42)  Ideas for a fun contest involving vehicle odometer readings to engage customers. RepairPal Certification (00:13:14)  Discussion on becoming RepairPal certified and the benefits for auto repair shops. App Fueled Introduction (00:14:18)  Overview of a customer loyalty app designed for auto service shops. National Lost Sock Memorial Day (00:14:54)  Encouragement for creative engagement ideas related to this fun holiday. Military Appreciation Month (00:15:06)  Suggestions for acknowledging military families and providing discounts. National Dance Like a Chicken Day (00:15:59)  Call to action for engaging with customers through fun activities. Check Your Wipers Day (00:16:27)  Importance of checking wipers before summer travel and educating clients. National Pizza Party Day (00:18:05)  Highlighting the fun of pizza party day and community engagement. Armed Forces Day (00:18:28)  Ideas for honoring military personnel and their contributions. Memorial Day Awareness (00:18:46)  Discussion on the solemn nature of Memorial Day and appropriate observances. National Road Trip Day (00:19:34)  Emphasis on preparing vehicles for summer road trips and inspections. National Rescue Dog Day (00:20:13)  Celebrating rescue pets and their connection to the auto repair community. World Marketing Day (00:20:48)  Encouragement to appreciate and promote effective marketing efforts. Paws and Pistons Campaign (00:22:41)  Combining pet care with auto services for community engagement. Prepping for Road Trip Day (00:24:51)  Continued focus on educating customers about road trip preparations. Engagement Ideas (00:25:34)  Encouragement to share personal stories and engage customers creatively.
      Auto Repair Marketing Mastermind (00:26:01)  Invitation to join the Facebook group for sharing marketing ideas and support.
      How To Get In Touch
      Join The Auto Repair Marketing Mastermind Group on Facebook
      Meet The Pros
      Follow SMP on Facebook
      Follow SMP on Instagram
      Get The Ultimate Guide to Auto Repair Shop Marketing Book
      Email Us Podcast Questions or Topics 
      Thanks again for listening to The Auto Repair Marketing Podcast on Aftermarket Radio Network. There are some other great shows on the network and you can find them at AftermarketRadioNetwork.com or on your favorite podcast listening apps like Spotify, Apple Podcasts, Google Podcasts, and many others
      Thanks to our Partners,
      RepairPal at https://repairpal.com/shops. Quality Car Repair. Fair Price Guarantee.
      App Fueled at appfueled.com. “Are you ready to convert clients to members? AppFueled™ specializes in creating custom apps tailored specifically for auto repair businesses. Build your first app like a pro.”
      Aftermarket Radio Network
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio


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