In recent years it was considered
to be a bad thing to do over 30%
warranty work out of your total
service calls. With the changes
being made in our industry we as
servicers have had to change with
them or be left behind. Some
of the current changes are manufacturer’s
warranties:
1. Removing limited
warranties and replacing
them with a one year full warranty
for parts and
labor.
2. Replacement Parts (out
of warranty) now
have only a ninety day warranty
on them by the
manufacturer.
With the removal of the five
year warranties on electronics and
transmissions and such, the industry
will now be selling more third
party warranties and extended warranties.
Most consumers will opt for an extended
or third party warranty to extend
their warranty period to five years.
What does that mean to the servicer?
The days of the cash call are dwindling.
There will be more manufacturer’s
warranties and third party and extended
warranty companies. They are
all looking for good quality service
companies.
With the internet, most claims
can be filed online, and payment
is readily processed. Some
companies even offer direct deposit
of your payment. We
no longer have to wait months to
receive our payments and parts credits.
In order to increase our volume
and profitability in our company,
we have taken on more work of this
kind. Strategic scheduling
is still in place in our business.
For those of you who do not know
what strategic scheduling is, I
will take a moment to explain. Scheduling
calls should be in the following
order:
1. Cash Calls (this
brings you the most profit)
2. Warranty/extended warranty/third
party (in
order of who pays you the highest
rate)
3 . Graduating downward in order
of labor rates
A customer taken care of properly
as a warranty contractor will become
a customer on a cash basis in the
future if they feel they have been
provided with honest and professional
service. Our goal is Customer
Service and Customer Satisfaction,
no matter if it is a cash call or
a warranty call. This is how
we have increased our volume of
service calls and increased our
profitability. In joining
Professional Servicers of California,
we have read many articles that
have helped in the running our business.
I strongly suggest that you join
Professional Servicers of California
and reap the benefits!
