Every year, as dealers begin to work on their annual labor rate submissions, many are quick to grab their policies and procedures manuals to get started. For most, it’s a process that may involve filling out a competitive survey, producing a certain amount of consecutive qualified repair orders, or a combination of the two. Does […]

The world is in crisis, and no one has escaped the financial and economic effects of the COVID-19 pandemic. Everyone in the retail automotive industry understands the true impact that this virus is having on dealerships and just how crucial it is for stores to find additional revenue now more than ever. Even as many […]

Auto dealerships have faced a persistent problem for decades now—despite their hard work, these dealerships have been forced by the industry to “discount” their warranty parts. Although they should receive fair market value for all warranty claims, these dealerships instead only receive a 40% mark-up or MSRP—neither of which reflects true retail value. For years, […]

Dealerships both small and large are always looking for unique ways to generate additional revenue. In the age of competition and digital marketing, where every dealership with an internet presence has an equal voice, simply selling cars and providing high-quality repairs isn’t enough (however, it certainly does help you stand out from your competitors); you’ve […]

Preparing your warranty labor rate increase submission is one of the most critical times of the year for dealerships. But unless you have the date marked off on your calendar; a comprehensive understanding of both complex state laws and manufacturer rules; and enough supporting materials that clearly demonstrate you are submitting for the optimal reimbursement […]

    For decades, the relationship between car dealers and manufacturers has had its challenges. From the perception of the dealer, the manufacturer continually attempts to “cost-shift,” lowering their expenses and increasing the dealers’ expenses. Over the years, many states have passed franchise protection laws in order to balance the unequal bargaining power that exists […]

When I was running dealerships for over 22 years, I recall looking through every nook and cranny for opportunities to drive additional profits. Of course, there are very few things you can do in our industry to generate revenue, without an investment in facilities, people, marketing, inventory, etc… Also, most of these opportunities entailed additional […]

Forty states now have legislation requiring manufacturers to reimburse dealers at retail rates for both parts and labor performed in warranty service. Some laws are stronger than others, and no two states have identical statutes. None of these laws are self-effectuating, meaning the law itself does not entitle the dealer to retail reimbursement; you must […]

As a dealer, you should ask yourself three basic questions in regards to your annual warranty rate increase: 1. Do I have my annual warranty rate anniversary date recorded, and do I have a process in place to make adjustments prior to it in case I don’t have adequate data to support an increase? 2. […]