DealersEdge Professional Forums

just wondering what other dealers policies are concerning diagnostic charges.

do you add the time in with the repair?
do you add a job which states "diagnostic charge"?

do you waive the diagnostic charge if the customer repairs the vehicle?

i realize that diagnostic charges depend on the nature of customers concern,but do not want to scare or run off customers.

however the more diagnostic time i can bill the more my techs make(which makes for happier techs) and the more gross profit the company can make.

We usualy have a line for diag charges and then build a separate line for the actual repair.

We don't have a carved in grantite policy but we usually do collect. We make case-by-case exceptions.

We are trying to get away from the term "diagnostic charge" and call it "preliminary testing" instead.

Cheers
DD

We charge a diagnostic fee for all repairs. If the customer agrees to the repair it is added into the repair operation. If not then they pay just for the diagnosis.

Cap

I know I will be dating myself, but years ago GM had a seperate labor op code that could be added to vehicles for diagnostic time if they used a tool like a CAMS machine or Tech 1 device. Labor Op J9999 was worth an additional 1/2 hour of diagnostic time on driveability complaints. Don't know if they still do such a thing.

[This message has been edited by Matt Parsons (edited 10-18-2006).]

I have a sign prominently posted at our write-up station stating our diagnostic charges policy. I charge one hour labor for electrical, driveability, and emmissions concerns and one half hour for mechanical concerns. In the event the tech runs into an extensive diagnostic situation, he advises the Service Advisor who contacts the customer for approval on additoanl time needed. I do include the diagnostic charges in the overall cost of the repair and charge the above mentioned diagnostic charges when a repair is declined. Currently we're at $66 per hour, so it's $66 + tax for electrical and $33 + tax for mechanical.

WE HAVE A LINE ON THE DISCLAIMER FOR THE CUSTOMER TO SIGN AGREEING TO THE DIAG TIME. GENERALLY .5 TO 1.0. THE TIME IS NOT WAIVED, BUT I DO ALLOW THE S/A TO "ADJUST" IF IT IS A GOOD JOB. WE THEN GIVE THE CUSTOMER A PRICE "INCLUDING" THE DIAG FEE.

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Tom Edwards

Diagnostic Fee is well worn and does nothing to add value to what you and I do.
I changed the verbage some time ago to:
Our "Testing and Diagnosis" fee allows us to supply you with needed answers and in many cases we can supply you 2 or more repair/maintenance options._________
Our customer base has become less "afraid" to talk about their problems after this statement. The client becomes an active participant at this point rather than a "Sheeple" who is just getting a check out fee rammed down their throat.
__ Do we offer to return our "Testing and Diagnosis" fee: sometimes/depends/kinda sorta. Much is based on client and the discussion during the reservation set up.


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Kevin-Honda Linc/Merc & Mitsubishi Service Manager, TX

We have a set check out fee, but its usually rolled into the repair,

If you view my profile you will see I represent a DMS provider. Yesterday I had the opportunity to be a "consumer" at a dealership that I have no professional connections with. As the transaction took place I was taking mental notes. One of those notes concerns diagnostic fees.

I arrived at a very large Chrysler dealership with no appointment. They processed me realtively quickly using the latest technology including a Tablet PC on the service drive. I needed two items repaired (1) Electric window switch (2)Windshield Wiper Switch. I knew both would be covered by my Chrysler Maximum Care contract.

At write up I had to agree to a Diagonostic Fee of $99.95 for each repair. It was explained that this would be charged if I chose not to have the repair done there. Since my repair was going to be Warranty I can only assume that had it been customer pay the Diagnostic Charge would be waived as long as I had them complete the repair. Thought this might be of interest to this thread on the Forum. Did not see the shop rate posted but thought the $99.95 x 2 was a little high - but that is life in the big city.

One unrelated note - inspite of having the latest technology and ability to generate paperless RO's which they utilize along with dispatching in the shop. They still print paper copies which I found quite curious. The cashier had not less then 10 pieces of 8.5x11 paper at checkout. So much for paperless RO's saving paper.

Have a tremendous day
Bob Britting

[This message has been edited by JustBob (edited 12-27-2006).]

That IS pretty heavy hit, IMHO. Sounds like a shop policy that might drive away some customers. Maybe it IS a big city thing? In out little town the customer would turn around and march out.....

I betting they allow a 1.0 hour flag to diag each item. Nothin' wrong with that on the face of it but this might be another good example of how "tech efficiency" can be distorted. What this proves, to me, is lots of "efficiency with the pencil", if you get my drift.....if a tech gets four tickets like that before noon he's already made his time for the day and had a couple coffee breaks! No wonder some guys end up with "15 hour" days

I would have figured on 1.0 to diag both items ...neither sounds that difficult...and the tech should still come out ahead if he was halfway decent. But, then again, that may be why my "stats" are not as good as they should be.

As for electronic repair orders....yeah, considering it to be a "paperless" system is just silly. We're using plain paper by the truckload. But, that's a lot cheapr than printed forms.....

Cheers
DD