Old 02-09-2019, 07:13 PM
Senior Member
Join Date: Apr 2006
Posts: 4,896

Not sure how it works for all manufacturers but the boats we used to sell left a 3% margin for us to use to deal with minor warranty issues and also help with the costs of dealing with the factory over work they subsequently paid for. If the owner took a boat I sold to another dealer he would have just got the factory payment and I already had the 3%. Not sure if that is a common practice or not but it might color your opinion as the non-selling dealer if being asked to fix a warranty problem at the lower labor rates.
What say you are a dealer for a popular brand and based at a popular holiday spot. Lots of those boats visiting all summer and maybe lots of people asking for quick warranty fixes while you are in the middle of your busy season supporting your own customers? Do you somehow staff up to deal with the extra warranty work at rates that might get you to break even, or do you tell people to get in line behind your other customers (not great if you are on holiday), or do you add some seasonal staff and charge a rate that leaves you with some profit for all the extra work? If you are a huge operation I guess you might just suck it up and live with it, but if you are a more average or smaller operation it might not be so simple. Of course there shouldn't be a lot of warranty work that is urgent, so if the factory has screwed up enough that there is, the factory should be working with the dealers about how to best sort it.
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