At QB Business Solutions, one of the most common questions we get from our clients is, “How do you secure such substantial warranty rate increases for dealerships?” The answer, while simple, involves a complex and thorough process. This is why we manage the entire procedure on behalf of your dealership, ensuring a seamless experience. What’s more, we operate on a success-based model—meaning we don’t get paid until your new rate is approved by the Brand.
TAILORED SOLUTIONS FOR YOUR DEALERSHIP’S GOALS
The journey to achieving optimal warranty reimbursement starts with understanding your dealership’s specific goals. Our success hinges on close collaboration with your management team. This partnership not only guarantees results but also fosters a unified approach to improving business practices and streamlining processes across the board.
KEY CONSIDERATIONS FOR YOUR DEALERSHIP
To maximize your warranty reimbursement potential, it’s crucial to evaluate several aspects of your dealership’s operations. Here are some key questions to ask yourself:
Market Comparison for Warranty Rates: How does your dealership’s warranty rate compare to others in your market?
Customer Pay Rate Analysis: How competitive are your customers’ pay rates?
Parts Matrix and Labor Grid: Does your dealership utilize these tools, and what is your underlying philosophy behind their use?
Customer Pay vs. Warranty Rate Delta: What is the gap between your customer pay rate and your warranty rate, and how long has this disparity existed?
Warranty Parts Markup: Where does your dealership currently stand, and where would you like to be?
Available Spare Hours: How many unused hours does your team have weekly, and how could you better allocate that time?
THE COST OF INACTION
It’s easy to maintain the status quo, but doing so could mean leaving thousands of dollars on the table every year. Simple adjustments to your daily practices can translate into significant financial gains—potentially increasing your dealership’s gross profit by $150,000 to $200,000 annually. These aren’t just empty promises; our track record speaks for itself. Our team of dedicated professionals works closely with your staff to ensure your dealership receives the maximum retail compensation for warranty labor and parts.
THE QB BUSINESS SOLUTIONS ADVANTAGE
What sets QB Business Solutions apart from other warranty reimbursement companies is our consultative approach. We don’t just process paperwork—we become an extension of your team, providing actionable insights and tailored strategies that drive real results.
For example, when assessing how your warranty and customer pay rates compare within your market, we conduct anonymous surveys and deliver detailed feedback. This transparency allows your service and parts directors to make informed decisions that capitalize on financial opportunities.
MAXIMIZING YOUR WARRANTY COMPENSATION
Many auto brands compensate dealerships at rates far below what they are allowed to receive for parts and labor. It’s not uncommon to see dealerships with warranty parts markups between 40% and 62%, while the national average sits at 76.8%. At QB Business Solutions, we consistently achieve markups of 95% or higher for our clients.
Similarly, labor warranty rates are often significantly lower than customer pay door rates. Our goal is to help your dealership secure increases that bring your warranty rates within a few dollars of your door rate—or even higher, depending on your practices and the tools you employ.
A CUSTOMIZED APPROACH
Opinions on using a parts matrix and labor grid can vary widely. That’s why we provide dozens of examples tailored to your dealership’s specific market, ensuring that you adopt the strategies that work best for you.
A HASSLE-FREE EXPERIENCE WITH GUARANTEED ROI
At QB Business Solutions, we take on the labor-intensive tasks so that your team can focus on what they do best, which is running your business. With no upfront fees or costs, our services offer a guaranteed ROI of 35 days. And as mentioned earlier, we only get paid when you get paid.
IN SUMMARY
Choosing QB Business Solutions means choosing a partner who is committed to your dealership’s success. We handle the complexities of warranty reimbursement, freeing up your time and resources while significantly boosting your bottom line. Let us help you unlock the full potential of your warranty rates—because leaving money on the table is not an option.
