ROC Rank: Senior
Join Date: Apr 2007
Location: Milwaukee, WI
Model Year: 2007
Color: Billet Silver / Gray
Re: Who Pays/gets paid for Warranty Work?
The previous answers are all correct for the most part. The manufacturer reimburses the dealer for parts and labor of a warranty repair. There are many reasons a tech may opt for a quick fix as opposed to a longer, more involved repair. The tough part is determining when a quick fix is acceptable and when it is not enough.
The fact of warranty work is that it doesn't pay as well as customer work. For the individual technician it is not nearly as profitable. The tech will often choose to make a quick fix and get the vehicle back out, so that he (or she) can move onto a different, better paying job. It really sucks to be stuck on a warranty job for several hours while the good work - the gravy - is done by somebody else.
At the end of the day, it all comes down to the dollar. I'm not going to be coy, I want to make as much money as possible, as quickly as possible. That's why I come to work everyday. However, warranty work is a part of the dealership environment and there is no way to prevent doing it.
This is where the huge world of politics - shop politics as it's called, comes into play. There are many ways techs can get out of doing warranty work. Some more honest than others. I have even known techs that will deliberately do a poor job on a vehicle so they will not to be considered for that type of job the next time one comes in.
In my own experience, I have found it more rewarding to take the time to do the job that no one wants to do. You do it, and do it correctly, and make the customer happy. More often than not, the service adviser will remember the "favor" you did for them and compensate you with a good job when one comes in. Quid pro quo. It's the way ALL politics work. Some people - like myself, are just better at playing the game.
Bottom line is this - and I have stated it before. You should build a relationship with your particular service adviser and even the technician. Always ask or request for the same ones. That way... you become a customer, a friend. When you come in with a warranty issue, they will take more care and more time and make sure you are happy - they will go the extra mile for you, because they know you will be coming back for more business, and next time it might be a really good, well paying job.