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Is dealer up charge for warranty work normal?

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Is dealer up charge for warranty work normal?

Old 02-11-2019, 05:09 PM
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I grew up in the automotive industry. This is a lawsuit waiting to happen and there can be new owners of the marina. Warranty is free repair work that can be provided by any place of choice. IF they have that sign up I would ask for a guarantee of workmanship, everyone working there has recent ASE, Manufacture Certs. If they want to play that game, they must earn it, even if they have the qualifications they do NOT have to be performed by them. This crap gets me livid, I am going to shut up.
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Old 02-11-2019, 06:06 PM
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I do not get the outrage here. The owner of the business wants X/hour for work performed in HIS shop. They more than likely have it posted so anyone that enters the service department knows what they’re paying per hour. Some manufacturers evidently think they can dictate what his hourly rate is. He is not refusing to perform warranty repairs, he is only refusing to accept a discounted rate for people that did not purchase boats from his dealership. If he has signed an agreement that he has to accept a certain hourly rate than that’s a different story. I doubt that’s the case here unless he wants to jeopardize his lines.
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Old 02-11-2019, 06:11 PM
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Originally Posted by bms1939 View Post
I do not get the outrage here. The owner of the business wants X/hour for work performed in HIS shop. They more than likely have it posted so anyone that enters the service department knows what they’re paying per hour. Some manufacturers evidently think they can dictate what his hourly rate is. He is not refusing to perform warranty repairs, he is only refusing to accept a discounted rate for people that did not purchase boats from his dealership. If he has signed an agreement that he has to accept a certain hourly rate than that’s a different story. I doubt that’s the case here unless he wants to jeopardize his lines.
I'd be VERY surprised if one can be a dealer/service center for any line and not agree to do warranty repair at the company rate

If there is no agreement, then you're right, he can do whatever he wants. I would say it is a shitty way to do business, and I wouldn't go there for any service, warranty or otherwise. But more power to the shop, they can do whatever they want, barring an agreement

Last edited by ncor33; 02-11-2019 at 06:19 PM.
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Old 02-11-2019, 06:22 PM
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Originally Posted by ncor33 View Post
I'd be VERY surprised if one can be a dealer for any line and not agree to do warranty repair at the company rate

If there is no agreement, then you're right, he can do whatever he wants. I would say it is a shitty way to do business, and I wouldn't go there for any service, warranty or otherwise. But more power to the shop, they can do whatever they want, barring an agreement
My state has franchise laws that require manufacturers to pay the going rate in the area. They also must pay the average percentage of markup for parts that are charged on repair orders. I’m surprised Florida doesn't have similar laws to protect their dealers.
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Old 02-11-2019, 06:35 PM
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Originally Posted by bms1939 View Post
My state has franchise laws that require manufacturers to pay the going rate in the area. They also must pay the average percentage of markup for parts that are charged on repair orders. Im surprised Florida doesn't have similar laws to protect their dealers.
I don't know that I agree that is "protecting" the dealers. The pay rate is only part of the compensation, when you consider the referrals, advertising, etc...that being a dealer/service center gets you. If a dealer wants protection, don't sign up to be a dealer or service center. Getting the government involved is never the answer. The dealer has a choice, nobody is forcing them to service or sell that line.
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Old 02-11-2019, 09:00 PM
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Originally Posted by bms1939 View Post
My state has franchise laws that require manufacturers to pay the going rate in the area. They also must pay the average percentage of markup for parts that are charged on repair orders. Im surprised Florida doesn't have similar laws to protect their dealers.
Very interesting. What state?
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Old 02-11-2019, 09:10 PM
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Originally Posted by fireisland1 View Post
I am not allowed to do that. If a customer has a legitimate warranty claim, I must honor my dealer agreement. I will however take care of my sales first. I have been in business for 40 years . I found good service leads to good customers so I take care of all warranty that comes through the door. Bad customers just go somewhere else. I do not deal with idiots, deadbeats, demanding, fowl language, drunks ,pot heads,stinky, nasty, hotheads, lowballers.
unlike other businesses, I do not have any customer problems.
whats wrong with potheads????
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Old 02-12-2019, 05:24 AM
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Originally Posted by streeter69 View Post
I grew up in the automotive industry. This is a lawsuit waiting to happen and there can be new owners of the marina. Warranty is free repair work that can be provided by any place of choice. IF they have that sign up I would ask for a guarantee of workmanship, everyone working there has recent ASE, Manufacture Certs. If they want to play that game, they must earn it, even if they have the qualifications they do NOT have to be performed by them. This crap gets me livid, I am going to shut up.
I think its more a not so polite way of saying "since you bought your boat somewhere else to save money take it back to them for service"

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Old 02-12-2019, 06:18 AM
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Originally Posted by bms1939 View Post
My state has franchise laws that require manufacturers to pay the going rate in the area. They also must pay the average percentage of markup for parts that are charged on repair orders. I’m surprised Florida doesn't have similar laws to protect their dealers.
If a dealer is OK with entering into whatever agreement he and the boat maker or motor maker agree to, why is a law needed to make the agreement do anything differently?

Is it perhaps that the dealers don't feel any need to be protected?

Dealer is OK with the agreement, he signs it. He is a dealer.

Dealer is not OK with the agreement, he does not sign it. He is not a dealer.
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Old 02-12-2019, 08:01 AM
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Years ago I stopped at a marine dealer with 3 different outboard franchises , and spoke with them about a purchase of a new outboard . Which would require drop shipping the engine to a different state. The dealer very politely would not entertain selling me an outboard . His explanation was good and to the point . He said I would be cheating myself out of dealer service that is normally part of the sail. I found this good advice. In re guard to we moved situation , would you not enter introduce yourself explain you are new to the area and wish to find a marine dealer to service your needs ? Possibly a good way to start out.
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Old 02-12-2019, 08:18 AM
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Most likely upcharging on EXTENDED warranty. Some of those companies will only pay 85, 95, 100 per hour, all they are doing is recovering their loss. I could do it where I work(Ford dealership), but it would likely be a death sentence.
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Old 02-12-2019, 03:50 PM
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Originally Posted by Raybo Marine NY View Post
I think its more a not so polite way of saying "since you bought your boat somewhere else to save money take it back to them for service"
True, BUT, if warranty work was done some where else at a higher rate are they going to reimburse you? It goes both ways. Warranty work is free work, there for it is free. If I don't trust the mechanics (I trust very few), there wait times are to long, I will go where I want and will not pay the difference. This is very boarder line Magnuson Moss Act. I can under stand marina's charging a fee for outside work as I have that. This is like charging me to work on my own boat.
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Old 02-12-2019, 04:50 PM
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If I ran into a situation like this, I'd be calling the manufacturer and raising bloody hell.
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Old 02-12-2019, 04:59 PM
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Originally Posted by bonestockgoose View Post
whats wrong with potheads????
See item 7.
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Old 02-12-2019, 06:31 PM
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Originally Posted by RJTaylor View Post
Most likely upcharging on EXTENDED warranty. Some of those companies will only pay 85, 95, 100 per hour, all they are doing is recovering their loss. I could do it where I work(Ford dealership), but it would likely be a death sentence.
Understood but they don't have to accept the extended warranty.
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Old 02-12-2019, 06:41 PM
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Originally Posted by mystery View Post
Very interesting. What state?
Connecticut

https://www.cga.ct.gov/2009/sum/2009...-06648-SUM.htm

“Also, the hourly labor rate paid to a dealer for warranty service could not be less than the rate the dealer charges for like service to non-warranty customers, provided this rate is reasonable“

Last edited by bms1939; 02-12-2019 at 06:47 PM.
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