To service or not to service...that is the ?

[hottubber]

As a long time dealer,I have found that the most important issue for me is to make sure that MY customers are serviced efficiently and effectively. Having 4 retail locations, I find that many times we get a new chemical customer which inherited a spa in their home that they just purchased.
For those dealers that have a service program. Do you take on all of the service that comes your way? Brands that have been extinct for decades? Parts that may not be available through any manufacturer or distributer?
I am curious..., how do you handle the "off brand"?
I know there is alot of money to be made, is it worth it at your customer's expense? You know, once you start, it is hard to say no. Even though getting the right replacement part is impossible.

[HotTubMan]

I would say take on as much as you can without comprimising service to those that have purchased from you. It definitely can help off set the loss of servicing under warranty.

[East_TX_Spa]

We service only customers that have our brand of spas.  We do not want the hassle or headaches of trying to find parts for Brand X spas nor the liability aspects resulting therewith.

The only time we'll touch another brand is to haul it to the dump in a trade-in situation.

CEO

[MBodnar]

HotTubMan,
Why do you loose money doing warranty service?   I've got more than 20 warranty accounts and make money off of all of them.  Have you negotioated with the factorys?  I find that most are easily swayed if your persistant.
MB

[HotTubMan]

We deal with two manufacturers.

One pays $40/hour on calls. These are the ones that add up to a loss.

The other pays $41.5/hour plus $30 travel. We break even or sometimes make a little on those.

To answer your question, no , we have not attempted to negotiate warranty rates, I'll give that a go.

[Wisoki]

If that is all you do is service and warranty, then the manufacturers pay a higher rate. When you are the servicing dealer, the rate the manufacturer pays is what you get and it is in most cases a loss for the dealer. Jacuzzi pays a straight 60 bucks, regardless of how far or long it takes to fix the problem. Sixty bucks, that's PATHETIC. On normal services I wont even turn the key on the service truck for less than 65, then I charge a hundred bucks an hour billed in 15 minuet increments ($25 per 1/4 hour).

HotTubMan,
Why do you loose money doing warranty service?   I've got more than 20 warranty accounts and make money off of all of them.  Have you negotioated with the factorys?  I find that most are easily swayed if your persistant.
MB

[HotTubMan]

I think the difference is, as a dealer you are obliged to warrant the products you sold.

As an independant you can negotiate because the manufacturer needs you to satisfy thier customers, likely because the dealer that sold it went out of business or changed lines.

I know someone that services Gulf Coast and is paid handsomely. Parts are shipped with no cost to him.

I bet whomever is servicing Wisocki's customers now is being paid better than he was as the authorized dealer.

[Spatech_tuo]

Jacuzzi pays a straight 60 bucks, regardless of how far or long it takes to fix the problem. Sixty bucks, that's PATHETIC.

Has that improved with your new product, Catalina?

[hottubber]

HotTubMan...I have to agree with you. It is very difficult to make ends meet with doing warranty service. We all know that we MUST take care of our customer's service issues. Remember, we were the ones responsible for putting that particular spa in their backyard. I try to offset the warranty calls by doing off brand service. It always seems to bite me in the A..
How do other dealers handle this dilemma? You cannot tell me that warranty work is a money maker. It is a neccessary evil. It is also why GP is what it is. We know someday, somewhere, that spa is going to need service, we must cover it in the pricing upfront, during the sale. If there are better ideas out there, bring it