My newest client was averaging about 78% of warranty expense vs peer comparison, at least since January of 2011. Since starting their warranty administration with my company in June, they saw a 15% increase in July and an additional increase of 7% in August, bringing their warranty index vs peer to 99.98% - this has shown them a total increase in gross warranty revenue/profit of $82,500 in just two months. You read that correctly...they were leaving approximately $41k on the table each and every month.
My question to each and any of you that are reading this - what is your current warranty expense vs peer index? After you investigate this number, see if you are leaving money on the table...if you are leaving money on the table, do you know how to fix that issue?
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