If your business is like many dealerships, your profitability is driven by your service department. In fact, some dealers who understand this, treat actual device sales as a loss-leader. They will budget for a 5 – 15% loss on sales just to place products in the field so they can profit on the service, parts, and consumables over time.
The most profitable dealers work hard to control their service costs. One huge cost is claiming OEM Warranties on covered products, parts, and labor.
Are you missing out? Here are a few key questions to ask and answer…
• Are you sure you’ve received all of the warranty claims you deserve?
• Do you have an easy process in place for making warranty claims?
• How much profit have you missed if you don’t make all of the claims you’re entitled to?
Two Warranty Stats You Need to Know
Here at ISI, we ship over 4000 items each and every day! Over the years we’ve spoken with our dealer partners and our experience has led us to these two statistics that really stand out:
• 5% of print devices will require a warranty claim in the first year of installation
• 20% of print devices will require a warranty claim within the first three years of use
If you’re a dealer, it’s time to do a little math. Take your install base and using these stats ask yourself, are you currently making all of the claims you are entitled to?
Most dealers miss out on warranty claims for a few simple reasons:
- They do not have a system in place and so processing is too cumbersome, making it not worth the time to file a claim.
- They don’t have a dedicated person within their organization whose sole responsibility is to make and manage warranty claims.
- They simply don’t know or understand how much potential revenue they are leaving on the table!
The Bottom Line…
Warranty claims can be a significant source of revenue. However, you need to have a process to identify claims and a partner like ISI to help you process those claims on your behalf!
If you’d like to learn more about working with ISI to process warranty claims and how it can add to your dealership’s profitability, give your sales representative a call today! We’re always here and ready to help!
