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Author Topic: Dealer Travel Service Charges  (Read 6808 times)

Gomboman

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Dealer Travel Service Charges
« on: June 09, 2006, 11:03:58 pm »
With the high price of fuel and labor it must be hard for the dealer to break even to service a spa under warrantee. I'm assuming the majority of dealers are charging for warrantee service in today's economy.

Does your dealer charge you for warrantee work? I sure don't blame them if they do. Are there any dealers out there who don't charge for travel expenses?  What are your thoughts?
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I want to get in the spa business so I can surf the internet and use Photoshop all day long.

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Dealer Travel Service Charges
« on: June 09, 2006, 11:03:58 pm »

Vinny

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Re: Dealer Travel Service Charges
« Reply #1 on: June 10, 2006, 07:50:26 am »
Well, all my warranty work (jets) have been over the phone and mail. It has cost me a little money to return the bad jets  but it would have cost some money to drive there and more importantly my time.

When I bought the tub they said there wasn't a service charge and luckily I haven't had a service call yet. Of course now that I responded ... ;D

I'm not an unreasonable person but I might be upset if I went to my dealer for warranty work and they charged me over $25 for a service fee. Gas to my house (approx 30 miles) in a service van (assume 10 MPG) would cost them an extra $4.50 ($3.00 vs $1.50 per gallon).

Snowbird

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Re: Dealer Travel Service Charges
« Reply #2 on: June 10, 2006, 09:53:42 am »
Jacuzzi J385 installed December 2005.

I had my ozonator replaced under warranty on April 15th and there was no service charge even though it is a 35 mile round trip for the dealer.  I was patient and waited until there more service calls in this area, but no more than a week.

Since the dealer is essentially providing a service to the manufacturer during the warranty period, increased costs should be a matter between the dealer and the manufacturer.  The buyer has no dog in that race unless the warranty expressly provides for the fees AND it was clearly pointed out BEFORE purchase since warranty fees are not normally something a buyer expects.

There was a thread on this earlier that got very heated.  Do a search and see what turns up.
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obi wan

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Re: Dealer Travel Service Charges
« Reply #3 on: June 10, 2006, 10:12:57 am »
after 15 months i did have a service call on a warranty issue. one of the things i did verify when buying the tub was that the warranty coverage did not have a trip charge. my dealer did not charge me at all.
I only live about 10 miles from the dealer, and would understand a trip fee beyond a certain # of miles for travel, as long as it was disclosed up front.
proffesional, i have dealt with the issues of fleet trucks and fleet fuel bills. that is a cost of doing buisness, no different that utility bills and rent.

part of the reason i paid a premium $ for a premium spa is because i realize i am paying for the peace of mind of a no cost service call down the road.

what the shopper has to realize is basic buisness. if i buy a product for $60, and sell it to you for $100, i am not neccessarily gouging anyone. i maintain a store for you to shop in,wet test get aditional parts, and service. i have technicians on staff, i pay for insurance coverage, gas, rent, and alll the other costs that go with a buisness.

if my competitor doesnt plan well, he buys the product for $60 offers to sell it to you for 85, and tells you i am overcharging you. after a year or so, he realizes he is not making enough money to stay in buisness, and he closes. now you expect me to service your product?
i sell them at $100, because i know down the road i will have to provide you service and/or warranty work, and i planned for that.
of course, to look at both sides of the coin, if i buy a $60 product and try to sell it to you for $150, then that is gouging..... so do your shopping carefully....

i hope this helps.....i am not in the tub biz, but the same biz model applies to most industries.


now i am going to get into one of my many cars and drive to my vacation home and spend the day on my yatch..... ;D ;D ;D ;D.

Snowbird

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Re: Dealer Travel Service Charges
« Reply #4 on: June 10, 2006, 10:33:22 pm »
obi wan,

If you do warranty work on a tub you handle but did not sell, does the manfacturer reimburse you for the repairs?

If warranty work is reimbursed by the manfacturer, why should you include the cost of warranty work into the price of the tub?

Shouldn't that have already accounted for in the price they charge the dealer or covered by any future reimbursement?  

Sounds like double dipping, but perhaps I don't understand how this is done in the hot tub business.  Not judging or arguing, just wanting to find out what is right.
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obi wan

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Re: Dealer Travel Service Charges
« Reply #5 on: June 10, 2006, 11:52:35 pm »
Quote
obi wan,

If you do warranty work on a tub you handle but did not sell, does the manfacturer reimburse you for the repairs?

as i said, i am not in the tub biz. as in my earlier post i had the motor on pump 1 go bad. a service tech came out thursday checked out the problem. probably about an hr and a half round trip back to his store. they ordered the motor, and will come back and put it in in about a week when it gets there. a couple more hrs. I am not 100% sure but the dealer gets reimbursed for the motor he bought, and gets a flat rate for the time involved to replace it. of course it was two trips plus, he is NOT reimbured for the truck the tech was driving, the insurance and costs that go with that truck. i am pretty sure that the tech works more than 10-15 hrs a week so somebody is paying him. dont forget his medical insurance, and other benefits.

If warranty work is reimbursed by the manfacturer, why should you include the cost of warranty work into the price of the tub?

please see above....

Shouldn't that have already accounted for in the price they charge the dealer or covered by any future reimbursement?  

Sounds like double dipping, but perhaps I don't understand how this is done in the hot tub business.  Not judging or arguing, just wanting to find out what is right.


I spent almost 10 yrs in the security alarm/camera/access control biz. we lost money on warranty work. we got a new part sent to us to replace a bad one. that was it. we had to absorb all other costs. we tried to make some of it up with billable service calls, but it was always a losing situation. dont get me wrong, we made money overall, but that is just how our biz works. when we sold new equip, we marked it up to cover our costs and still make a little more.....

Brewman

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Re: Dealer Travel Service Charges
« Reply #6 on: June 11, 2006, 09:55:42 am »
My dealer doesn't charge a trip fee.
Brewman

hottub.pool_boy

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Re: Dealer Travel Service Charges
« Reply #7 on: June 11, 2006, 10:07:05 am »
We do not.   Most here in CT get $50-$75. We do not find it necessary.
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drewstar

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Re: Dealer Travel Service Charges
« Reply #8 on: June 12, 2006, 02:42:59 pm »
Quote

I'm not an unreasonable person but I might be upset if I went to my dealer for warranty work and they charged me over $25 for a service fee. Gas to my house (approx 30 miles) in a service van (assume 10 MPG) would cost them an extra $4.50 ($3.00 vs $1.50 per gallon).


I agree with you 100%.  
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wmccall

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Re: Dealer Travel Service Charges
« Reply #9 on: June 12, 2006, 03:05:35 pm »
Quote

I agree with you 100%.  



I find a lot of dealers like to have the option to charge that fee, but frequently don't.   In the PC business, I usually go back a 2nd time for a problem for free, but if the problem is user error I reserve the right to charge another service call. I'll frequently try to do those in conjunction with another call depending on the severity of the issue.
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drewstar

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Re: Dealer Travel Service Charges
« Reply #10 on: June 12, 2006, 03:13:36 pm »
Quote


I find a lot of dealers like to have the option to charge that fee, but frequently don't.   In the PC business, I usually go back a 2nd time for a problem for free, but if the problem is user error I reserve the right to charge another service call. I'll frequently try to do those in conjunction with another call depending on the severity of the issue.



My point was the dealer using gas prices as an excuse for charging the fee.  
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Gomboman

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Re: Dealer Travel Service Charges
« Reply #11 on: June 12, 2006, 08:58:55 pm »
OK, I was thinking it was the standard today to charge for service. Maybe I'm wrong.

Only one dealer responded though. I guess it's not a subject most dealers want to talk about.  :)
2005 Hot Spring Envoy still going strong. Million-Mile Club....

I want to get in the spa business so I can surf the internet and use Photoshop all day long.

Brookenstein

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Re: Dealer Travel Service Charges
« Reply #12 on: June 12, 2006, 09:16:19 pm »
Gombo,

I have dry rot and a leaky pipe... I was shocked that every plumber I called had a service fee.  

I could find contractors for a free estimate, but no plumbers.  The fee ranged from $35-75.  Interestingly, one was the same co that did my AC last year with no service charge, so it is a new policy for them.

LtDan

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Re: Dealer Travel Service Charges
« Reply #13 on: June 13, 2006, 08:56:23 am »
Quote
Gombo,

I have dry rot and a leaky pipe...


So many inappropriate responses come to mind...

rick_in_cleveland

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Re: Dealer Travel Service Charges
« Reply #14 on: June 13, 2006, 10:57:53 am »
I live 60 miles from my dealer (120 round trip + toll).  He has said that he is instituting a $75  fee but when he replaced a motor I wasn't charged.  My sides have faded and at some point he will be out to replace all four sides under warenty.  My guess is he will charge me for that one.

Hot Tub Forum

Re: Dealer Travel Service Charges
« Reply #14 on: June 13, 2006, 10:57:53 am »

 

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