Re: Goodwill, Where Are The Limits
Posted to Shop Management Forum on 11/18/2015
2 Replies
Louis,
My brother asked me that same exact question in 1985 when he
saw me honor a transmission warranty that was technically
out of warranty both in terms of time and mileage. He asked
me, "At what point would you not feel guilty charging full
bore retail all over again?"
That was a tough question because I had never thought about
that before. I finally said 50K miles. Then he asked me how
many years and I said 5. My brother then said, "So, you
really have a 5 year 50K mile warranty, but you don't tell
anybody, is that right?" I him-hawed around and said "I
guess so, but I deal with each one on a case-by-case basis."
He went off on me and said, "OH MY GOSH LARRY! You have a 5
year, 50K mile warranty in reality, but you aren't telling
anybody about it. Do you realize what a powerful marketing
tool that would be if you advertised it?"
And that, Louis, was the birth of our now famous 5 year
warranty we have been giving ever since 1985. In 2012, we
upped the mileage on the warranty from 50K to 100K to
compete with the dealer warranties. It is, indeed, a very
powerful marketing tool that allows us to charge as much,
and in some cases more, than the dealer.
We discovered if it makes it the first year without a hitch,
there's a 90% chance it will make it the full term of the
warranty. The ones that don't are more than covered by the
extra revenue generated by the top dollar generated.
I would like think the warranty was my idea, but it was
really my brother who is not only not automotive, he's not
even technical at all. He's actually a professional
magician. No joke. https://www.youtube.com/watch?v=Xh1OV9Cf0mY 1:29
Larry Bloodworth Technical Information Specialist/Technician Tanner Transmissions Draper, Utah, USA
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