If you’re serious about increasing your dealer warranty gross profit, it’s best practice to consider the following before sending in a submission:
Best Practice #1: Know The Law
Based on previous experiences, you can be sure that certain manufacturers will read the law in
an entirely different manner than you, and try to wiggle out of following the law altogether. The
only way you can combat this legal obstruction is by being prepared. We know some
manufacturers try to squeeze non-warranty repairs in to hurt your mark-up and others
deliberately refuse to follow the law, so it’s crucial you know the warranty reimbursement
statutes in your state, as all state laws will differ.
Best Practice #2: Follow The Manufacturer’s Protocol ‘To A T’
This is where things get a little tricky. You see, manufacturers try to shield dealers from knowing
the rules to follow before sending in a submission. There are guidelines for the inclusion or
exclusion of various aspects that make up the submission, so if you can figure out what they
are, we suggest following them before you submit. It’s better to follow them ‘to a t’ (or pretty
dang close to it) than to cause red flags right away. Save yourself a headache and thank
yourself later by doing this from the beginning.
Best Practice #3: Optimize For The Long Run
When you optimize anything, you’re setting it up for success in the long run. There are no “quick-
fixes” that last, and we both know that. That’s why it’s critical you select the proper submission
sample. If you don’t invest in quality technology, you may cost yourself a few mark-up points,
and that means losing thousands of dollars in warranty gross profit per year. Please take this
point seriously, and give your submission some serious attention to detail and consideration.
You don’t want to look back in five years and think about the extra $20,000 you could’ve had.
Best Practice #4: Get Prepared For Warranty AuditorsBest Practice #1: Know The Law
Not only should you invest in quality technology for retail warranty reimbursement to help you
pick the proper submission sample, but you should also have your submission audited
thoroughly. As soon as you send your submission in, factory auditors pounce on it in hopes to
find errors – and errors delay the process. This is why you should have someone familiar with
the way the auditors operate ready to serve as your last line of defense before you send your
submission in. Remember: you don’t want to upset these auditors, so do your best to get along
with them or they just might keep you up at night.
Best Practice #5: Get Ready To Handle Manufacturer Responses
As foreshadowed and in many cases, your submission approval process will have its ups and
downs. The manufacturer may reject submission altogether or refuse to accept certain parts of
it. How you respond is what really matters. In fact, your response will determine whether you
enjoy a mighty increase in your warranty gross profit, or leave with nothing to show for it.
Regardless, you must be prepared to handle rejection because some dealers have sent in up to
four re-submissions in two years. It is not fun when you know you’re losing thousands in profit,
but it’s best to keep at it because the end-benefit is well worth it.
