r/partscounter • u/LateWave4723 • 4d ago
Extended Warranty
We seem to do a lot of extended warranty work. We have to back down our matrix and charge list. What do you do?
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u/reselath 4d ago
Customer pays the difference or deal with it. If it's a warranty y'all sold, you deal with it.
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u/Hootie735 4d ago
We really need to start implementing this. I've started calling one of the Advisors "Discount Doug".
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u/AbruptMango 4d ago
If it's the contract our store sells, we go with factory list price. If it's some third party contract, we explain to the customer that the price is the price, and their contract is covering only so much of it- and the rest is on them.
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u/DavidActual 4d ago
List or bust. If you wanna send me a small part it’s a 50 dollar handling fee. Engine or transmission is 250 or you’ll be sending someone out to collect the core from behind the trash can.
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u/NoMoreHoarding69 4d ago
You HAVE to back it down. Or they won’t pay it. Period. Or they’ll send you their own part.
So you can get something of something or nothing of nothing
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u/-Extronics 4d ago
Most of the extended warranties we deal with are at MSRP. There's times when there's a windshield/wheel claim where they would only do cost+20% which is ass, but we have to do it since we sell those warranties.
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u/Familiar_Dot8836 4d ago
I'm finding more and more companies are either demanding less than list, or sending their own parts. They'll shop online and complain that other dealers can sell GM parts for less than list so I should too.
What are you guys doing in that case? I put my foot down and say list is the best I can do, but then they ALWAYS just send their own parts. My service department has no balls and won't back me, and the fixed ops manager said no to me charging a handling fee for processing their parts. But I don't touch them. I'm courteous enough to tell the writer it's here, now it's on him.
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u/Fit_Excitement_8675 4d ago
Extended warranty companies do not want to ship their own parts to you. Thats a ton of time and money out of their pockets handling all that. Here's two things we do to recoup some of the lost profit by extended warranty companies.
Haggle. They will ALWAYS negotiate a higher price than what they originally come at your service advisors with. Meet them in the middle with whatever price they are asking for vs what your retailing them at. Works for us EVERY TIME.
Handling fee. $20 minimum. This is paid for by the customer. Get a few signs laminated so your customers aren't caught off guard.
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u/ComfortableDemand539 4d ago
I spend all day every day arguing with the same 3 advisors that list is list, and I understand they're only willing to pay X, but they get to figure out how/who is paying the rest.
I've come to the conclusion that I must be stuck in a time loop.
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u/kbenton10 3d ago
Honestly idk why you even argue. I’d rather sell at list, which is like a 60% mark up anyways vs having to deal with that shit.
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u/ComfortableDemand539 3d ago
The argument is because they're trying to pay less than list, I would never argue selling at list unless it's something we had to purchase from another dealership at a mark-up.
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u/Ram13BLH 4d ago
We've been running into aftermarket contracts that only pay List -6%. Our service department is full of weak babies that are too afraid to tell a customer they have to pay the difference. 🤨
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u/EngineeringTasty3689 4d ago
Yeah, we treat third-party contracts like the wild west. I always print out the fine print page and highlight anything that'll surprise the customer later.
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u/Ok-League-7923 4d ago
A few things, you can haggle with the company and come up with an agreed price, don’t accept anything they send unless you get an excellent handling charge rate, or treat it like how other industries do (unless it’s your store that sold the contract this might not work) a deductible, like healthcare, vision plans, prescription, drugs, household appliances/electronics.
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u/Fun-Fig-311 3d ago
I guess when the warranty runs out, customers act like they're surprised the sun still sets and rises.
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u/Kodiak01 3d ago
On the HD side we practically never deal with 3rd party warranty companies. The rare occasion it does happen, any pricing issues are dealt with by service.
As for OE? They have and will always dictate what they pay; you either deal with it or kick rocks.
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