whats fair? Warranty work on a stove we didnt sell......

The title pretty much says it all! Every once and awhile, we get asked to do warranty work on units we didn't sell. Now, we still get the warranty funds from the manufacturer....all of $55 total, to travel, diagnose, and repair the unit we didn't sell, as well as shipping on parts, etc.. So, just curious what you guys think is "fair", in a situation like this?

And before you say it, no, servicing my competition's units for nothing is not an option here. It may sound great from the end-user side, but warranty work is a money-loser even if you do sell the unit! We cant make it up on pellets, as its a commodity these days, and heck, the owner already has their stove, so, selling them another likely wont happen anytime soon either.
My competition refuses to service a unit they did not sell, so, I would rather not go that route either, but given the choice of not servicing the unit we didn't sell or losing money servicing their (my competition's) units, I would rather not service their units.......

 

Different product but, for units we sold, we did the warranty for what ever the manufacturer reimbursed us. For units we did not sell we offered a "discounted" labor rate and did not include travel time if it was within what we considered our market area. If there was a lot of travel involved we would tell them up front what it would cost to walk in the door.

That said, if it was truly a manufacturers defect and a reasonably local address we would either minimally bill or not bill them at all. Hopefully we would get a new customer in the future. If they were calling us because the dealer they bought from was tired of fixing damage caused by their mistakes they got the full bill.

Working this way we got a few new customers and never had a complaint lodged with the manufacturers we represented.

KaptJaq

 

This "no service" stuff drives people insane and it would you if you were in their shoes. If you have a service center, do and charge what it cost. Let the customer know upfront those are the conditions. If the customer caused the problem, tell them that and let them know what it cost to repair their actions or neglect. I would get a signed contract for the work.

 

I would tell them that you only service in house units that you sold. If they want the stove serviced under warranty for units you did not sell, they must bring the unit to your shop.

It seems ridiculous to uninstall it, and they likely won't/can't. But them bringing it to your shop is what anyone else would do with ,say, a car warranty. if their dealer won't do it, they can bring it to another dealer.

If that seems like a non-starter, and you want the work, I would make it clear that the warranty is for parts/labor of the fixed item only. diagnostics, travel at $.44 cents a mile (federal tax rate i think), and since everyone else is doing it, a fuel surcharge is extra.

 

We sell 4 brands of mowers, we service what we sell and same brands that were bought somewhere else. Alot of work comes from other brands that we dont sell. Yes i agree, i dont like working on other brands that we dont sell but its a chance to gain new customers . When there tired of the box store mowers saws weedeater, they remember how we treated them and they didnt even buy it from us. So they buy there new unit from us. I always put them last in line to be worked on, and i tell them that upfront because we take care of our customers first. Thet get it. So yes we take alittle less on the warranty side but gain a new sale and a customer for life

 

Now for other manufacturers wanting to only pay a certain amount thats bull on there side. They dont have anyone else to do it, thats why they call you. Yes they will pay diagnose fee, 30 mins, and flat rate fee for replacement of parts. Then you have travel time, that were one place you can make up. You set your rate and make it high for travel and hourly rate for onsite repairs. Are rate is 88 hour, but on manufacturers we dont warranty its 120 and are pick up fee its 59, but on others its 100. Your not hurting the customer, your charging the manufacturer.

 

Learned my lesson, I buy any equipment that I don't consider disposable from a reputable dealer....Take it in for service and get it back in a day or two! Buy something at box stores or off the net, take it for service and wait till next month or longer to get it back.

 

That is very true, in a servicing dealership, its the service behind the sale. We always tell them when there unit breakes down we put them in front of the line, and give them one to use till theres is fixed.

 

IMO, I would inform the owner that since they did not buy it from you, there would be an additional service charge for you to do the work. Make that amount enough so you don't lose any $$ completing the job. They can take it or leave it.......at least you offered.

I'd also explain to them how the $55 you get back doesn't cover even the travel expense (in most cases).

The fact that you are at least offering to do it at all might net a new customer down the road.

 

well, both. Usually, its the customer directly, but sometimes its the manufacturer.....when its the manufacturer, its easier, as we can charge them back for the call over and above what they normally pay. When its the customer, best you can do is estimate the labor before you leave....the parts are covered under warranty anyhow.

 

no

 

its basically what we do, but when ya sit down and start doing the math, again, trying to remember that we are in business to make a profit, even these warranty stops for other dealers can be pretty pricey. For instance, a stove rebuild is several hours, often requires picking up and rre-installing the unit (two trips), so, twice the time investment.....

 

Like I said, charge them whatever you want.....they always can say no.

 

Are these typically stoves from a manufacturer whose products you sell? If so, are you contractually bound to handle warranty work on their products?

Assuming that the problem cases are with stoves you are not obligated to fix, you might tell the customer what the likely actual costs would be, and offer to call the manufacturer as a courtesy (you're doing the customer a favor!) and ask whether those costs will be covered. Of course the manufacturer will usually decline, at which point you can give the customer the bad news, and offer an estimate in case they are willing to pay to have the work done. That's about as accommodating as you can be without letting the manufacturer take advantage of your good nature.

And hey, maybe at that point the customer gets on the phone to the manufacturer themselves, raises hell and gets a concession -- which is what should happen. $55 for a service call and repair is ridiculous, and it's 100% the manufacturer's fault.

 

Personally, I take that work every time. That person who has been rejected by another company, will tell every one the meet about you, EVERY ONE. I get phone calls from people telling me that so and so told them about my service and they want US to do the job because of that word of mouth.