Manufactures and Extended Warranty Companies
Manufactures and Extended Warranties, A Backwards Program
I will state that I currently do not hold a board position on Professional Servicers of California Association and that the opinions here are my own.
In the past there was a Partnership between the Servicers Associations and the Manufacture and Extended Warranty Companies. If one still exists it has long ago lost its luster. The manufacture used to provide Factory training and technical assistance and referrals for out of warranty customers. These carrots were the reason the Service Company accepted lower than COD rates.
Today hands on factory training is coming to a halt, replaced by webinars and online training videos if any training at all. Today some Manufactures are requiring that the Service Company PAY for access to technical material and use of the tech line in order to do Factory Warranty work. Meaning The Servicer is paying to get the information to work on the Manufactures Product. Does this make sense to anyone except the Manufacture? I think not. We now have to pay for drug tests and background screening. Again at the cost of the Service Company. The Manufactures still wants to pay lower rates and has taken away the carrots.
Extended Warranty Companies
In the past the Extended Warranty Companies paid a very fair rate, part markup with no cap. They did this because they realized that they had no carrots to give.
Today they want to pay a labor rate far below what the manufacture pays. They put a cap on parts in most instances, they want the Servicer to pay any shipping and handling charges out of the cap. In some cases the shipping exceeds what the cap is and the Servicer loses money.
Why Is This Backwards?
From the time the Service Company takes the service call until the repair is done, filed and paid, ALL the money out on the table is the Service Company’s. The Servicer in many instances has to fight in order to get back their own money. A few companies pay the claims in a very timely fashion, most do not. This money out on the table, are the Service companies being paid interest on this Loan? If you think about it the Service company in essence is handing out interest free loans. Maybe it’s time for a change.
Where is the customer Service?
I always try and give credence where due. I attend several conventions for Major Household Appliances. Some of the Manufactures and Extended Warranty Companies assist in providing Training , sponsorship for the Associations. This also applies to the Consumer Electronics Companies that Support this organization, and other Consumer Electronics Associations. I thank you for your support.
I would also like to acknowledge Sub Zero/Wolf and Panasonic for the Support they Provide to their customers, and to their Service Companies.
Tim L Ory