Retail Warranty Reimbursement
Parts & Labor Warranty Reimbursements:
Can Your Dealership Do Better?
Can You Increase Your Bottom Line with More Efficient Warranty Reimbursement?
In the ever-evolving landscape of the automotive industry, car dealerships are
continuously on the lookout for ways to enhance their bottom line. One avenue that
presents a significant opportunity for improvement is warranty reimbursement on parts and labor. If you operate a dealership, you may often wonder if you are receiving the maximum amount possible from manufacturers for warranty work. The good news is that with a strategic approach and expert guidance, your dealership can indeed become eligible for better warranty reimbursement rates.
Warranty work can be a difficult aspect of dealership management. Traditionally, manufacturers set standard reimbursement rates for warranty parts and labor. However, these rates often do not match the retail rates that dealers charge their regular customers. The discrepancy means dealerships are sometimes left with the short end of the stick, accepting lower compensation for warranty work than they might otherwise earn – but it doesn’t have to be that way.
So, is your dealership eligible for better warranty reimbursement on parts and labor? In short, yes. In most states, legislation enables dealerships to apply for higher reimbursement rates based on what they charge their retail clients. These statutes have been enacted to ensure that dealers are fairly compensated for the warranty work that they perform, bringing the reimbursement rates closer to the actual retail rates. Yet, even with these laws in place, numerous dealerships are not taking full advantage of them. Why? Because the process can be complex, time-consuming, and laden with pitfalls for the uninitiated.
This is where outsourcing Warranty Reimbursement makes a world of difference. The level of expertise in navigating the warranty reimbursement landscape with precision takes skill and knowledge. Now, let’s unpack how QB Business Solutions can empower your dealership to tap into better warranty reimbursement for parts and labor, making comprehensive use of the statutes designed to support your profitability.
QB Business Solutions is your partner for maximizing retail compensation through Warranty Reimbursement for Parts and Labor, expert Warranty Claims Processing, and Dealer Analytics.
QB Business Solutions is rapidly growing with over 2000 dealers completed in the last 5 years.
We Can Work With All Automotive Manufacturers
- Let's Start With the Parts
For Parts Warranty Reimbursement, most state laws permit dealerships to receive compensation based not on the manufacturer’s suggested price but rather on the retail prices that the dealer customarily charges customers.
The foundational step is gathering and submitting a request to the manufacturer with a list of parts and the prices you charged for them in retail repairs. This request is somewhat of a statistical exercise, requiring careful documentation, and often a specific number of part and labor entries.
At QB Business Solutions, their experts deploy a meticulous approach to this process. They understand that getting together all the necessary information can be daunting for dealership team members who are already juggling multiple responsibilities. That’s why they roll up their sleeves and take on the heavy lifting, ensuring every detail is
accounted for.
- Moving on to Labor
Like parts, Labor Warranty Reimbursement also has room for improvement. The legislative framework in numerous states stipulates that dealerships can demand labor rates comparable to what they charge non-warranty customers.
As with parts, a submission process entails providing proof of the labor rates. This proof involves compiling a list of labor jobs performed, the time taken, and the rates charged.
Again, precision is of the utmost importance, and that’s another area where QB Business Solutions shines. Their team understands the ins and outs of the labor submission process. They analyze your labor reports, help identify the suitable labor jobs to include in your submission and work with you to make a compelling case for increased labor rates.
- Navigating Complications
It’s essential to understand that this is not a “submit and forget” type of operation. Manufacturers often have guidelines and criteria for these submissions, and the process of reviewing reimbursement rate increase requests can be lengthy and fraught with potential objections.
With decades of experience, the QB Business Solutions team anticipates these challenges and knows how to address them proactively. The objective for QB Business Solutions is to get you the results YOU deserve, and they accomplish this by handling communications and any disputes that might arise.
- Reimbursement Options
-
FULL-TIME CONSULTIVE
REIMBURSEMENT INCREASE
- ONE-ON-ONE CONSULTATION:
Each dealership is assigned a specialized account manager to provide expert consulting.
- ONGOING SUPPORT:
Weekly recaps and performance tracking ensure your management team stays updated on progress and results.
- MAXIMUM ROI:
Our consultative model yields the highest possible reimbursement increase, ensuring the best financial outcomes for your dealership.
- SUSTAINABLE BUSINESS PRACTICES:
We equip your team with necessary tools and strategies to maintain improved reimbursement practices longterm.
-
DATA SERVICE
REIMBURSEMENT
- EFFICIENT PROCESS:
Fast and efficient reimbursement process, getting you results quickly.
- DATA-DRIVEN INSIGHTS:
Detailed reporting to identify the optimal financial timeframe for your submissions.
- LOWER INCREASE:
Yields a smaller increase compared to our consultative service, but it provides speed and efficiency.
- REQUIRED DOCUMENTATION:
We help ensure all necessary documents are submitted correctly, to avoid the risk of rejection and delays.
- Getting Started is Simple!
- All we need is a few simple things...
- Current Warranty Parts Mark-Up Rate
- YTD Warranty Parts & Labor Sales
- YTD Warranty Parts & Labor Gross
- YTD Customer Pay Parts Gross
What Our Satisfied Clients Are Saying
The Facts
The Benefit
The Knowledge
The Solution
Wrapping All of This Up
At the end of the day, dealers of all sizes have a massive opportunity to increase their warranty gross profit. Not only are you entitled to receive fair reimbursement for warranty parts and labor and warranty work but you can also potentially double the size of your current retail warranty reimbursement revenue. Tackling the submission process should not be taken lightly, but if you do attack it judiciously and professionally, you can reap the benefits to get the best possible rates. By not taking action, you must know you’re causing yourself thousands of dollars per year. QB Business Solutions can only hope that you see the upside and take the necessary steps to execute the submission process accordingly.
Take the Next Step and Let QB Handle All of The Work For You!
- Based on your last 12-month financial data we will forecast your individual annualized Parts and Labor gain.
- Once you review our forecast and decide you would like to proceed, we will send you a Dealer Agreement and we will get your store(s) set up quickly.
- QB Business Solutions will work directly with your DMS provider to create the necessary reports with Dealer approval to complete the submission process.
- QB Business Solutions’ knowledge, dedication, and proprietary warranty data reporting allow us to maximize the Dealers' return. Our commitment to our clients is to configure the best outcome while following State and Factory guidelines.
- We monitor your submission and provide you with timelines of the expected notification from the factory.
- Once manufacturer approved, immediate increase to Parts and/or Labor gross profit year over year.
QB BUSINESS IS YOUR SOLUTION
TO
RECEIVE YOUR MAXIMUM
ALLOWED RETAIL COMPENSATION:
- FREE Consultative approach
- NO Monthly Fees
- NO Upfront Costs
- NO Service FEES
Why is QB Your Solution
Want to see how QB can help you get up to an extra $500K on Retail Warranty Reimbursement on Parts & Labor?
Fill out the form to get access to our FREE Reimbursement calculator to see what QB can do for you
