Fixed Ops Magazine - 2020 Vol17 06 - 48
SERV IC E D E PARTME NT
ANNUAL
WARRANTY
LABOR RATE
INCREASE
Statutory or Factory Submission?
E
very year, as dealers begin to work on their
is submitting for a labor rate increase should be evalu-
annual labor rate submissions, many are quick
ating its factory protocol and its statutory protocol to
to grab their policies and procedures manuals
determine which is most advantageous.
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 this process yield as
much of an increase as the dealership wants or is entitled to receive? Many times, the answer is no.
Most dealers are surprised to learn
that a factory submission isn't their
FACTORY SUBMISSIONS
The guidelines for a factory labor submission are different for each manufacturer and can typically be found
in your policies and procedures manual. The process
can be as simple as filling out a competitive survey
Any dealer who is
or as arduous as producing 100
sequential qualified repair orders.
only choice. In fact, 48 states have
submitting for a labor
Most manufacturers will require a
some type of legislation in place
rate increase should
tain amount of qualified repair or-
that allows dealers to perform a
statutory labor submission. The purpose of a statutory submission is
for a dealer to achieve warranty labor compensation at its retail rate,
which is a market driven rate based
on its warranty-like customer-pay
repair transactions. Any dealer who
48
combination of a survey and a cer-
be evaluating its
ders. In some cases, it's a quick and
factory protocol and
and wait for a response. While this
simple process to request your rate
its statutory protocol
process may seem enticing, there
to determine which is
submission. First, your manufacturer
most advantageous.
are some pitfalls to filing a factory
is not required to respond in a certain time frame. Many dealers have
Fixed Ops Magazine - 2020 Vol17 06
Table of Contents for the Digital Edition of Fixed Ops Magazine - 2020 Vol17 06
Fixed Ops Magazine - 2020 Vol17 06 - 1
Fixed Ops Magazine - 2020 Vol17 06 - 2
Fixed Ops Magazine - 2020 Vol17 06 - 3
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Fixed Ops Magazine - 2020 Vol17 06 - 46
Fixed Ops Magazine - 2020 Vol17 06 - 47
Fixed Ops Magazine - 2020 Vol17 06 - 48
Fixed Ops Magazine - 2020 Vol17 06 - 49
Fixed Ops Magazine - 2020 Vol17 06 - 50
Fixed Ops Magazine - 2020 Vol17 06 - 51
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Fixed Ops Magazine - 2020 Vol17 06 - 66
Fixed Ops Magazine - 2020 Vol17 06 - 67
Fixed Ops Magazine - 2020 Vol17 06 - 68
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