WARRANTY WOES
Are you being paid enough?
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

It has been a chance for us to catch our breath at Service Dealer this week, following on from all the excitement of our Conference & Awards last Thursday.

 

Immediately following the event, myself and Service Dealer owner Duncan Murray-Clarke, travelled into London on Friday lunchtime to attend the PPA Independent Publisher Awards - where our magazine was shortlisted for the Business Publication of the Year. Always a tough category as we were up against some well established titles, unfortunately Duncan and I had to perfect our best magnanimous faces when it transpired that we hadn't won!

 

The prize went to a medical industry publication called Pulse, but as they say it was a honour to simply be in the running for such a prestigious award. The whole team feel proud that our magazine was even recognised amongst such illustrious company. Who knows though, maybe next year?!

 

Also following the Awards, our very own Jenni Green has been visiting our nominated charity, Farms For City Children, to present them with a rather large cheque. It was amazing on the night to witness the generosity of the dealers and manufacturers in the room, who deemed the charity worthy of donating almost three and a half grand to!

 

Service Dealer was absolutely delighted with the response and we know the money will be put to such great use, giving disadvantaged inner-city kids the opportunity to experience life on a country farm. Everyone who helped towards the cause at the event, should feel immensely proud of themselves.

 

Warranty work

 

Thinking about the Conference, as well as the benefits gained from the formal presentations and seminars, there was another element to the day that one had almost forgotten was integral to its DNA. That being the interpersonal interactions that a gathering such as this affords. The one-on-one conversations held with colleagues and peers, many of whom we won't have seen in person for nigh-on two years, are invaluable and have been much missed.

 

Discussions like these, face to face and in small groups, gives the conference its heartbeat and a unique place in the industry's calendar. People come together from across the sector, to share ideas, experiences and knowledge in a friendly setting, with the only agenda being to help and to learn from each other.

 

One conversation of note I had with a dealer, who wishes to remain anonymous, was regarding concerns they had over warranty work - specifically the discrepancies as they saw it, within the industry on the rates paid by different manufacturers.

 

This dealer's point was that some of the rates offered were quite simply far too low, making the undertaking of work economically unviable.

 

As they put it, "As the online industry continues to grow, the resentment or reluctance of some dealers to carry out warranty repairs on machinery they haven’t supplied can be understood."

 

They continued, "If the manufacturers paid a better rate, then the non-supplying dealer may welcome the extra work with open arms. However, that said, some of the rates are laughable even if you have supplied the product."

 

As a measure, they told me their standard in-store labour rate was between £60-£70 for service / repair. They then went on to describe their various suppliers' hourly rates they offer for warranty. Without naming names here, some were as low as £35 or £38 per hour.

 

The dealer concluded, "I understand the reluctance perhaps, of allowing us to make a ‘profit’ on the parts and labour - but I feel we are being penalised for something that is not our doing."

 

Your views?

 

I thought it would be helpful to open this up to you, our dealer readers today, for some feedback. Are the views of this dealer something you recognise from your own dealership and can empathise with? Or do you have a different take on warranty rates?

 

We're running a short survey today and it would be great to hear from as many dealers as possible with your views on this subject. There are a few quick questions and the space for you to share your opinions. The survey is anonymous, so no one will know what you've said.

 

As ever we shall publish the results and a selection of your comments in the next issue of Service Dealer magazine. Thanks in advance for your help.

 

TAKE THE SURVEY

In this issue
EDITOR'S BLOG
WARRANTY WOES
NEWS
NEW DISTRIBUTOR ANNOUNCED FOR ECHO PRODUCTS IN UK
SERVICE DEALER RAISES £3.5K FOR FARMS FOR CITY CHILDREN
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