For many dealerships, profitability is often driven by the service department. An often overlooked and untapped profit center for dealerships lies in warranty claims. Is your dealership missing out on this profit potential?
At Impression Solutions, our industry-leading value-add programs are designed to help our dealer/partners maximize their profit potential. In this post, we will look at creating a profit center around warranty claims including parts, registration, and labor reimbursement.
Grow Your Profits with Warranty Claims
At Impression Solutions, we ship over 4000 items every day. Through the years, we’ve spoken with our dealer/partners, and when it comes to warranty claims, three statistics really stand out:
• 5% of print devices 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
• The average printer warranty claim exceeds $200 or more and typically consists of one of the three major components – the fuser, drum, or developer.
Over the years, we have spoken with hundreds of our dealer/partners about warranty claim services, and we often hear the same things over and over, for example:
• “The warranty paperwork is tedious…”
• “I don’t have a dedicated person to do these claims…”
• “We usually give up when a claim is refused…”
The fact is, if you’re not taking advantage of warranty claims as a part of your business, you need to do a little math. If your business does $5 million a year in sales and you average 250 claims per year at an average of $200 per claim, you’re leaving a potential $50,000 in missed profit potential on the table every year.
Claims Made Easy With ISI
Filing a claim is easy. Simply log into the website, go to the support drop-down menu, and go to “warranty” where you will find the forms for registration. Fill out the form and include all of the information: company info, the model and make of the machine, and the parts you are replacing.
To simplify the process, we’ve created a cheat sheet that clearly shows what documentation the customer will need to provide to expedite the claim. Once you have the documentation, upload it and hit submit.
Warranty claims are a potential profit center for your business. If you have questions, please give your ISI rep a call.