IDS’ eBook Helps RV Dealers Increase Warranty Profits – RVBusiness – Breaking RV Industry News
Warranty departments are often overlooked in RV dealerships, yet they hold significant potential as profit centers, according to a release from IDS. In this eBook, How to Increase Profits Through Your Warranty Department by IDS, Kevin Gribble, Account Manager at IDS and former fixed ops and warranty manager at a multi-location dealership, shares his insights on how to transform your dealership’s warranty operations.
The Business of Warranty: More Than Just Claiming
One of the biggest lessons Gribble emphasizes is that warranty is not just about filing claims; it is a business unit that needs to be actively managed. At his dealership, they successfully brought in over $280,000 per month with 27 technicians — not just in claims filed, but in actual dollars received. Many dealerships focus solely on submitting claims, but ensuring those claims are processed and paid is just as important.
Here are the key factors that contribute to a high-performing warranty department:
- Inventory Management: A dealership’s lot represents a massive investment, and proper oversight of warranty-related inventory is critical to ensuring efficiency.
- Manufacturer Communication: Success in warranty depends on building strong relationships with manufacturers, understanding escalation paths, and navigating their requirements.
- Pre-Delivery Inspections (PDIs): A thorough PDI process enhances customer satisfaction and helps prevent costly warranty issues before they arise.
- Getting Paid: Many dealerships focus solely on claim submission, but without diligent follow-up, they leave money on the table. Ensuring payment collection is just as crucial as filing the claim itself.
- Parts Management: Organizing and tracking warranty parts prevents revenue loss and streamlines the return process.
- Record Keeping: Keeping detailed records ensures smooth operations and helps avoid disputes with manufacturers.
Maximize Your Warranty Profits
Too often, dealerships treat warranty as a secondary function when it should be a core revenue stream. By refining processes, strengthening communication with manufacturers, and ensuring claims are properly handled, dealerships can turn warranty into a major revenue driver.
Read IDS’s exclusive eBook and start leveraging these expert insights to boost your dealership’s warranty profitability.
