The Problem: Warranty calls can be difficult:
- Multiple trips to the customer’s home and the supply warehouse.
- The customer doesn’t want to pay a lot for something that should not have failed.
- Warranty parts get lost.
- The failed part needs to be processed so we can receive credit for it.
- Etc.
A Hypothetical Scenario: A customer on the far west side of Wimberley called. His system was freezing up. Upon arrival, we found a failed blower motor. The system was still under warranty, so we ordered a replacement motor from the supply house. We went and picked it up ($525.78 up front) and returned to the customer’s home. We slapped it in there, charged him $215 for replacing the blower motor under parts warranty, and left. End of story.
Q: What’s missing from that scenario?
A: $310.78
“How so?” you ask.
The warranty process was never completed for that blower motor… so the company never received credit for our up front costs.
$525.78 up front cost MINUS $215 payment from the customer EQUALS a $310.78 loss.
The Solution: make sure every warranty part is properly processed.
To properly process and receive credit for warranty parts:
- Put complete information in Housecall Pro:
- The customer’s name, address, phone number, and email.
- The model and serial number of the relevant equipment.
- The reason for failure.
- The date of repair.
- If you are not personally taking the part back to the supply warehouse, label the part with the above information so that it can be matched back to the customer.
- No later than Friday of the current week, leave the part on the designated Warranty Shelf at the shop.
The goal is to return and receive credit for 100% of all warranty parts.
Q: Get it?
A: _____________.
Good!!
PS: If the company operates on a 10% profit margin, it will take $3,107.80 in future sales to make up for the loss in the above scenario. Yikes.
