Here is a question for Service Managers and/or Fixed Operations Directors:  How much time do you spend reviewing your warranty department on a daily basis?  If you are performing the tasks and duties that are the responsibility of your warranty administrator, then you need to re-evaluate who you have in that position.  Are you simply assisting with those duties?  Have you placed too many other tasks upon your warranty administrator?  (i.e. cashiering, phone operator, service drive assistant, etc.) 

 

I was speaking with a client the other day.  During the course of our talk, he made the comment that having the warranty process performed by my company was such a relief because he never liked the idea of paying a warranty clerk for 8 hours a day when they were only performing 2 hours of claims submission - and he spent about 2 hours a day looking over claim errors and coaching staff regarding the errors he found...That statement seemed a bit odd to me...Why was he doing any of the warranty process?  Well, he had an ineffective warranty administrator.  He is happy now because he has the opportunity to work as a manager and grow his business.  He utilizes a valuable tool to secure 20% of the overall net profit of his dealership...he uses a professional warranty administrator.

 

There are a very many fantastic in-house warranty administrators, who take their position very serious.  There are also people in this position that simply do not know what they are doing, or know just enough to get by.  When you employ the latter, you are never going to realize the revenue increase that you should and most importantly, you are setting yourself up for an audit...Take a moment and look at your warranty process - is it taking away from time that could be spent growing your fixed operations department?

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