Saturday, August 25, 2012

More on dealer "flat rate".

Manufacturers encourage their dealers to regularly apply for increaes to their dollar rates -- Honda's and Kawasaki's timetables are every two years. Every two years their dealers submit requests for warranty reimbursement rate reevaluation. In response, the manufacturer looks at the dealer's level of technical training and expertise, the prevailing economics in their area, and most importantly, whether or not the dealer is able to demand this new dollar rate on the retail level, a consideration that will indicate the validity of the amount requested. Speaking of the retail labor rate, many states require that a sign be posted in the service dept with this dollar amount on it. Dealers in high income areas often post their rates by the half-hour instead of the hour, and more progressive dealers use a menu pricing system, like car dealer's, where all work is priced in a package deal system that is more customer-friendly.




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