Most dealerships reduce their overall expense in ways that make complete sense.  They utilize vendors for pin striping, dent repair, small paint repair, even detailing departments.  Why would you pay the expensive overhead to employ full time people that provide "part time" results?  Yet everyday, dealerships keep paying a ridiculous amount per year for warranty administrators...

Fixed Operations account for about 12% of the total dealership sales; however, it produces 60% of the overall net profit.  Warranty claims equate to 30% of the total volume in the service department...with that understanding, one will deduce that the warranty department in your dealership accounts for 20% of the total net profit of the dealership!  When you have…

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I have never found a dealership that does not have some amount as an "automatic policy adjustment."  - Most that I have seen have what seems to be a minimal, "$5.00" - but I have also seen as much as "$50.00"...what?!?  Did you know that if you write 1000 warranty repair orders per month, and you allow for a $5.00 automatic adjustment, for whatever reason, you have the potential of simply losing $60,000 per year!!!  Now that $5.00 is starting to look like a little bigger number isn't it?  Let's… Continue

Your effective labor rate for customer pay service work is variable and certainly differs from your posted "door" rate.  Your warranty labor rate is fixed for at least one year and normally increases after a labor rate review.  Your single biggest customer pays a fixed dollar amount for every single labor hour you charge them, yet you continue to attempt to manage a variable rate for every other customer, while you overlook… Continue