Fixed Ops Magazine - 2022 Vol19 04 - 20

* REPAIR - This area of work requires a higher level
of tools, technology, and technician skill. Factors
such as labor, parts, shop supplies, and taxes all go
into the job price.
* TYPES OF CUSTOMERS - Service Advisors have the
ability to modify prices in numerous ways, and the
type of customer being serviced can impact pricing.
The different types of customers include retail customer
pay, dealership employees, fleets, insurance
companies for extended warranty, OEM warranty, and
dealership for internal. Having this in mind assists with
pricing compliance to ensure continuity across the
different services for each type of customer.
* WARRANTY LABOR AND PARTS - When your CP
labor rates and pricing compliance are dialed in, you
can reap the benefits of warranty labor and parts. The
rules that govern warranty labor and part rate calculations
are complex, but most dealerships can apply for
an increase every 12 months.
* LABOR - Warranty labor is reimbursed by applying
the labor times in the OEM warranty guide to
the OEM-approved labor rate. However, while it is
not prevalent across the country, there are a few
states where the law requires reimbursement at a
retail rate. Your warranty labor rate is determined
by the CP labor rate for similar jobs, so the more
effectively you manage the CP labor rate, the more
you will be entitled to!
* PARTS - Warranty Parts are reimbursed by applying
the OEM-approved parts markup percentage
to the cost of the warranty part. As with labor,
a well-managed CP parts makeup, the more you
could be entitled to for warranty parts.
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Fixed Ops Magazine - 2022 Vol19 04

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2022 Vol19 04

Fixed Ops Magazine - 2022 Vol19 04 - 1
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