Aftermarket Warranty Companies

[bluepart]

How do you all address these aftermarket warranty companies that tell you they will only pay what turns out to be at or less than cost for parts, or want you to use aftermarket parts ? You know that if you do , it throws your GM Daily Report numbers in the toilet and will ultimately cost bonus money from GM. I know what I want to say, but your thoughts please.

[Bearster18]

Being a guy who worked for a Very popular warranty company in the country for years. I now know both sides of the spectrum. I will tell them I'll work with them on pricing to a point and if that's not good enough they can send me the parts from the aftermarket. If I worked at ford or dodge I wouldn't care to use A/m parts but with GM and our grading system I have less leverage. Most warranty companies don't like to ship parts to shops/dealers because it's a lot of extra work. So it helps me put them in a corner and make them work with me like I'm working with them

[TimK]

We will sell at GM list for these aftermarket warranty companies.

If they are only willing to pay X and the job costs Y we charge the customer the difference.

We don't let them send us parts, and let a car leave last week because we wouldn't cave on price (had the parts in stock).

I run a business, it costs me money to do so, it costs money for the building, it costs money to have an inventory of parts to sell.

Selling parts at a wholesale price on a retail job is not part of my business plan.

[Richard]

How do you all address these aftermarket warranty companies that tell you they will only pay what turns out to be at or less than cost for parts, or want you to use aftermarket parts ? You know that if you do , it throws your GM Daily Report numbers in the toilet and will ultimately cost bonus money from GM. I know what I want to say, but your thoughts please.

The service advisors here know that we will NOT use their parts, then they pass the call to me. I usually negotiation a price around cost +40 and let them think they beat me to a pulp.
If they still say no, I tell them that we have a minimum charge of 3 hours to put the customer's car back together, and that we charge $30/day storage, plus if they are in a loaner, that's another $50/day, and their policy holder will NOT get the vehicle back until we receive a cashiers check for the total. They usually fold.

The service manager cringes every time I get on the phone with one of the AM warranties, but I've only lost 1 job for him in the last several years. It's our shop, do NOT let them tell you how to run your business.

[Bearster18]

^ Nice!!

[TimK]

It's our shop, do NOT let them tell you how to run your business.

Bingo