Forum Discussion
Matt_Colie
Apr 17, 2017Explorer II
Let me tell you this about that.....
BIL owned a motorcycle shop.
A good friend had a small power boat shop.
They both reported that the majority of dealers only have a "Back Room" (repair shop) because that they know that they could not move product out the door without it.
Both these two were smart about it. The kept the repair shop profitable by being timely and effective. Both paid their key people top dollar and made the line wrenches responsible for the work that they did. They also let the line guys approve the quote for larger work. They still could not make money on warranty - nobody can.**
The dealerships that bitched about doing repairs all hired the cheapest people that would take the job and had fast turn-over and were known for the poor quality of shop work. When you are bidding against McDee for help, you can't very well hold them to high standards.
** Some years back BMW motorcycles changed their warranty reimbursement to be top dollar. So, when any came in, it went to the senior line mechanics first. Warranty and related complaints disappeared. I do not know if this is still the case.
Matt
BIL owned a motorcycle shop.
A good friend had a small power boat shop.
They both reported that the majority of dealers only have a "Back Room" (repair shop) because that they know that they could not move product out the door without it.
Both these two were smart about it. The kept the repair shop profitable by being timely and effective. Both paid their key people top dollar and made the line wrenches responsible for the work that they did. They also let the line guys approve the quote for larger work. They still could not make money on warranty - nobody can.**
The dealerships that bitched about doing repairs all hired the cheapest people that would take the job and had fast turn-over and were known for the poor quality of shop work. When you are bidding against McDee for help, you can't very well hold them to high standards.
** Some years back BMW motorcycles changed their warranty reimbursement to be top dollar. So, when any came in, it went to the senior line mechanics first. Warranty and related complaints disappeared. I do not know if this is still the case.
Matt
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