Dealer Warranty Work

[JonV]

When your dealer performs warranty work, do they lose money or does Yamaha pay them to fix the problem. Just curious how this works.

I would assume the dealer would be paif for their time?

 

[yam177]

if its like cars the manufacture pays but it barley covers what you have to do. In other works as a Technician warranty sucks!!!

 

[SnoWarrior]

My dealer told me he will take all the Yamaha warranty work he can get.
He said he gets paid by Yamaha the regional hourly rate, about $100.00 an hour around here. He said it keeps his mechanics busy and he makes money. He has done a bunch of warranty work on my sled, and I did not even buy the sled from him.

 

[cannondale27]

If the dealer is busy he could make more $ doing other jobs.Yamaha is stingy on the hrs paid for.So if a job takes 2hrs when Yamaha says it only takes 1 dealer loses $.Didnt the tunnel block off say .5hr to install or something crazy?Maybe after doing a few it could be done but it would be a challenge for sure.

 

[Ruckus]

A dealer makes about 75% of their door rate on warranty claims and a 30% mark up over cost on parts. They don't get "paid" as such, the claimed amount usually is negated from their parts account owed to the parent company. That is one of the main reasons the hourly rate is so high. A lot of folks will fix it themselves or get the 'guy down the street' to do it after the warranty has expired. Its a vicious circle. If they are caught inflating the rate for warranty claims and giving a lower one to customers they could loose the franchise. One way around this is to advertize "service specials", offering a flat rate instead of hourly.

 

[TechMaples]

Can you say flat rate manual? Yamaha doesnt vary much from what they think a job should take (hour wise). There are some jobs the dealer makes out ok, others you struggle to make anything. If you did 3-4 of the same job back to back you could be ok. The first time you do one it is hard to make flat rate, unless its something simple or easy.

 

[phaze5]

yea my poor dealer lost money on my sled. he had 12 hours into my starter and got paid for 6. they were goin to school on my sled lol.

 

[woolyviper]

changing donuts on apex and vector was .8 hours. maybe with 3 guys working on it.