Managing retail warranty parts reimbursement is a headache for dealer service center. The relationship between manufacturers and dealers has been inharmonious in the past, in some cases necessitating state laws to protect dealers. Complex state statutes, manufacturing protocols and pressures, gatekeepers, and limited internal resources combine to make a “perfect storm” that prevents dealers from receiving full retail warranty reimbursement.
“For years most dealers have submitted for annual increases to their warranty labor rate, but have been stuck with an artificially low parts mark-up stipulated in their dealer agreements,” wrote Armatus Dealer Uplift’s Managing Partner Joe Jankowski for Digital Dealer. “This mark-up is typically 40 percent over cost, although some manufacturers will pay you list or MSRP. By the way, don’t be fooled by the ‘list’ claim you may hear; you are not collecting 67 percent, which is anecdotally thrown around by your factory rep, or by your managers – you are most likely being paid a mark-up in the low to mid 50s.”
To streamline the process and help speed up reimbursement with a goal to increase dealerships’ gross profits, Auto/Mate Dealership Systems recently announced that it has successfully completed all dealership management system (DMS) integrations with Armatus Dealer Uplift. Real-time integration between the two systems allows auto dealers to expedite their retail warranty parts reimbursement submissions and maximize their reimbursement.
“Manufacturer rules and state laws governing retail warranty reimbursement are varied and complex,” said Mike Esposito, president and CEO of Auto/Mate, in a statement. “We’re pleased that our customers now have an option to simplify this process and substantially increase parts profits.”
Armatus Dealer Uplift helps dealers collect retail reimbursement for warranty parts with minimal effort and no need to pay an up-front investment. On average, Armatus Dealer Uplift’s dealership clients gain $80,000 to $100,000 per year in additional profit per store, according to the company.
Auto/Mate’s integration program, Open/Mate, is based on open software standards so that third-party vendors can easily integrate with the DMS.
“Integrating our system with Auto/Mate’s DMS was fast and inexpensive, thanks to the Open/Mate program,” said Jankowski. “We appreciate Auto/Mate’s philosophy that an open integration program provides auto dealers with more vendor choices and more affordable vendor options.”
The Parts Module in Auto/Mate’s DMS allows auto dealers to more easily manage their part department’s daily functions and inventory, and OEM integrations make it easier to place parts orders.