- All 50 states have passed legislation that permit dealers to file for and obtain retail rates for parts and labor.
- The state laws also allow dealerships to resubmit for additional increases, typically once per year. Please contact us to discuss your state’s specific requirements and guidelines.
- Obtaining retail rates for warranty labor and parts markup can have a significant impact upon your dealership’s profits now and in the future.
- Retail Warranty Reimbursement is a very time-intensive process which includes the practice of law and keen analytical ability. You should use counsel who is knowledgeable in the subject matter and well-versed in the legal complexities in your respective state.
- By retaining legal counsel, your can have your attorney respond to any legal objections that may be asserted against your submission. There is no need to hire outside counsel should the need arise.
We have a dedicated team of fixed operations and legal experts.
Fixed Operation Analysts obtain data via remote access. They build a streamlined collection of thousands of customer repair orders for review. Finally, they prepare hundreds of pages of documentation.
Our team of attorneys review responses from OEMs, identify errors in OEM interpretation in state laws and prepare replies to OEMs, to then advise and lead clients on OEM negotiation.
You may say…
- “We can do it ourselves.”
You should outsource your Retail Warranty Reimbursement submission services as dealership staff loses time from everyday responsibilities. Dealership staff lacks experience with state statutes and the OEM process and therefore cannot maximize parts/labor revenue or address legal objections.
- “I’m afraid of retaliation.”
All 50 states now have Retail Warranty Reimbursement statutes, which were passed to project dealer rights. We advise State Associations on necessary statutory language and revisions. We monitor our submissions and have had no reports of retaliation. This is the benefit of having a law firm in your corner.
What are some important issues involved in the process of submitting for Retail Warranty Reimbursement?
- Identify the proper OEM contacts and send proper notification that you are making submissions for parts and labor rate increases.
- It is very important to conduct in-depth data analysis by identifying the appropriate repair orders to maximize your increases. Perfection is important; otherwise, your submission can be rejected by the OEM.
- Mistakes are more likely to occur if you do not hire someone with the necessary level of experience and knowledge regarding the submission process and the applicable legal guidelines.
- Analyze data to determine the best repair order (“RO”) sequence to use.
- Extract the required number of repair orders.
- Identify qualified repair orders by reviewing every RO.
- Validate that each qualified repair order complies with the applicable state statute.
- Validate that the parts used are OEM parts numbers.
- Calculate the parts markup and labor rates for each and all qualified repairs.
- Verify the complete analysis and submit to the OEM.
- Develop a pricing strategy on parts and labor to increase margins.
- Implement a Parts Matrix and/or Labor Pricing Grid.
- Perform a competitive market analysis.