Great fixed operations don’t just happen. They’re built on a foundation of data-driven insights. By understanding the “why” behind every metric, you can inspire your team to work towards a shared goal: exceptional customer service and operational efficiency. Trends and schedules aren’t just tools; they’re the compass guiding your dealership to a brighter future.
The warranty trend report can be used as a valuable insight to reviewing your service department’s possible inefficiencies. Info on shop comebacks, rejects, and repair frequency reports are going to show you the tip of the iceberg that’s sinking your profits. If it’s happening with your warranty repairs, it’s likely just a symptom of a larger concern. You can use this info to solidify better standards for your service department and create goals and monitor your progress.
For instance, if you can identify a category of repairs that has a high volume in shop comebacks, you can take the time to sit with your technicians and have them commit to upgrading their knowledge to reduce shop comebacks in that area. A low trend score in certain other repair categories may show a sign of potential loss of opportunities. Correcting those will not simply affect your warranty business. Discovering and correcting this will affect the nature of all repairs and reduce your shop comeback volume overall. This in turn will yield you higher profitability — not to mention a better reputation.
Successful warranty processing companies have been reviewing schedules for decades. Over the years, many items have been found that were creating discrepancies in the books of service departments. Predominantly, these errors are completely avoidable.
Getting your books in order should be your priority over everything else. You can’t run a smooth operation if you don’t know where you stand. Reviewing the schedule is the best way to find overarching errors and patterns so you can get ahead of pitfalls. I am going to list some common finds when conducting schedule reviews along with solutions for each instance.
• One of the most commonly found errors is when repairs are closed as warranty, but are internal or customer pay repairs.
• It’s important to have staff well versed on warranty coverage to be able to distinguish warranty from customer pay. You’d think this would not be a common mistake, but it is.
• You might also find yourself surprised if you gave your staff a quiz on powertrain coverage.
• Knowledge gaps exist and the only way to combat them is to have open conversations about existing concerns. Things can come to light in the discussions and you can provide employees with the information they need to be successful.
• Missed revenue is also a common find. Common examples are missed revenue due to not knowing your state’s exchange allowances for additional labor.
• If you are unsure whether or not your state allows for additional labor or exchange allowances, review your state’s laws.
• Missed revenue finds can also include miscellaneous for recalls.
• Always thoroughly check the bulletin when it is released for new recalls. You will want to get together with your parts department, advisors, and technicians to make handling recalls as profitable and as efficient as you possibly can.
• Incorrect parts markups are also a frequent inconsistency.
• It’s important to regularly check your schedule against adjustments to determine any inconsistencies in payout.
• Having a regular labor rate for maintenance repairs is a simple error that is common.
• Rate errors can add up fast causing huge discrepancies in your books.
• Adjustments need to be reviewed and find out why they were made.
• Reducing adjustments will give you a clearer picture of what’s to come in your service department. It is incredibly important for you to be able to more accurately budget on a month-to-month basis.
• It’s also important to pay attention overall to labor rates for the same basic reasons.
With time and wit, clearing up your books will lend itself to solving many concerns and lead you on a path to running a tighter ship.
The warranty trend report is more than just a document: it’s a compass, guiding your service department towards a more profitable and efficient future. By understanding the underlying causes of warranty issues, you can address systemic problems and empower your team to deliver exceptional results.
Remember, the true measure of a successful service department isn’t just about fixing cars. It’s about inspiring your team to strive for excellence. When your team is aligned with a clear purpose — to provide exceptional customer service and drive profitability — they’ll go above and beyond. By using data-driven insights to identify areas for improvement, you’re not just fixing problems. You are creating a culture of continuous improvement. And that is the key to long-term success.
Brennan Reiter is a seasoned automotive warranty claims and auditing professional with over 16 years of experience serving new car dealerships. He has a deep understanding of domestic and foreign manufacturers’ warranty compliance requirements and has been involved in numerous dealership audit reviews and consultations. Brennan’s expertise extends to the presentation and discussion of warranty topics at industry conferences. Currently, he oversees a team of 90 employees who process warranty claims and generate reports for 300 dealerships with his family. Brennan.reiter@paidwarranty.com
