Hot Tub Forum
Original => Hot Tub Forum => Topic started by: Gomboman on June 09, 2006, 11:03:58 pm
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With the high price of fuel and labor it must be hard for the dealer to break even to service a spa under warrantee. I'm assuming the majority of dealers are charging for warrantee service in today's economy.
Does your dealer charge you for warrantee work? I sure don't blame them if they do. Are there any dealers out there who don't charge for travel expenses? What are your thoughts?
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Well, all my warranty work (jets) have been over the phone and mail. It has cost me a little money to return the bad jets but it would have cost some money to drive there and more importantly my time.
When I bought the tub they said there wasn't a service charge and luckily I haven't had a service call yet. Of course now that I responded ... ;D
I'm not an unreasonable person but I might be upset if I went to my dealer for warranty work and they charged me over $25 for a service fee. Gas to my house (approx 30 miles) in a service van (assume 10 MPG) would cost them an extra $4.50 ($3.00 vs $1.50 per gallon).
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Jacuzzi J385 installed December 2005.
I had my ozonator replaced under warranty on April 15th and there was no service charge even though it is a 35 mile round trip for the dealer. I was patient and waited until there more service calls in this area, but no more than a week.
Since the dealer is essentially providing a service to the manufacturer during the warranty period, increased costs should be a matter between the dealer and the manufacturer. The buyer has no dog in that race unless the warranty expressly provides for the fees AND it was clearly pointed out BEFORE purchase since warranty fees are not normally something a buyer expects.
There was a thread on this earlier that got very heated. Do a search and see what turns up.
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after 15 months i did have a service call on a warranty issue. one of the things i did verify when buying the tub was that the warranty coverage did not have a trip charge. my dealer did not charge me at all.
I only live about 10 miles from the dealer, and would understand a trip fee beyond a certain # of miles for travel, as long as it was disclosed up front.
proffesional, i have dealt with the issues of fleet trucks and fleet fuel bills. that is a cost of doing buisness, no different that utility bills and rent.
part of the reason i paid a premium $ for a premium spa is because i realize i am paying for the peace of mind of a no cost service call down the road.
what the shopper has to realize is basic buisness. if i buy a product for $60, and sell it to you for $100, i am not neccessarily gouging anyone. i maintain a store for you to shop in,wet test get aditional parts, and service. i have technicians on staff, i pay for insurance coverage, gas, rent, and alll the other costs that go with a buisness.
if my competitor doesnt plan well, he buys the product for $60 offers to sell it to you for 85, and tells you i am overcharging you. after a year or so, he realizes he is not making enough money to stay in buisness, and he closes. now you expect me to service your product?
i sell them at $100, because i know down the road i will have to provide you service and/or warranty work, and i planned for that.
of course, to look at both sides of the coin, if i buy a $60 product and try to sell it to you for $150, then that is gouging..... so do your shopping carefully....
i hope this helps.....i am not in the tub biz, but the same biz model applies to most industries.
now i am going to get into one of my many cars and drive to my vacation home and spend the day on my yatch..... ;D ;D ;D ;D.
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obi wan,
If you do warranty work on a tub you handle but did not sell, does the manfacturer reimburse you for the repairs?
If warranty work is reimbursed by the manfacturer, why should you include the cost of warranty work into the price of the tub?
Shouldn't that have already accounted for in the price they charge the dealer or covered by any future reimbursement?
Sounds like double dipping, but perhaps I don't understand how this is done in the hot tub business. Not judging or arguing, just wanting to find out what is right.
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obi wan,
If you do warranty work on a tub you handle but did not sell, does the manfacturer reimburse you for the repairs?
as i said, i am not in the tub biz. as in my earlier post i had the motor on pump 1 go bad. a service tech came out thursday checked out the problem. probably about an hr and a half round trip back to his store. they ordered the motor, and will come back and put it in in about a week when it gets there. a couple more hrs. I am not 100% sure but the dealer gets reimbursed for the motor he bought, and gets a flat rate for the time involved to replace it. of course it was two trips plus, he is NOT reimbured for the truck the tech was driving, the insurance and costs that go with that truck. i am pretty sure that the tech works more than 10-15 hrs a week so somebody is paying him. dont forget his medical insurance, and other benefits.
If warranty work is reimbursed by the manfacturer, why should you include the cost of warranty work into the price of the tub?
please see above....
Shouldn't that have already accounted for in the price they charge the dealer or covered by any future reimbursement?
Sounds like double dipping, but perhaps I don't understand how this is done in the hot tub business. Not judging or arguing, just wanting to find out what is right.
I spent almost 10 yrs in the security alarm/camera/access control biz. we lost money on warranty work. we got a new part sent to us to replace a bad one. that was it. we had to absorb all other costs. we tried to make some of it up with billable service calls, but it was always a losing situation. dont get me wrong, we made money overall, but that is just how our biz works. when we sold new equip, we marked it up to cover our costs and still make a little more.....
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My dealer doesn't charge a trip fee.
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We do not. Most here in CT get $50-$75. We do not find it necessary.
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I'm not an unreasonable person but I might be upset if I went to my dealer for warranty work and they charged me over $25 for a service fee. Gas to my house (approx 30 miles) in a service van (assume 10 MPG) would cost them an extra $4.50 ($3.00 vs $1.50 per gallon).
I agree with you 100%.
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I agree with you 100%.
I find a lot of dealers like to have the option to charge that fee, but frequently don't. In the PC business, I usually go back a 2nd time for a problem for free, but if the problem is user error I reserve the right to charge another service call. I'll frequently try to do those in conjunction with another call depending on the severity of the issue.
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I find a lot of dealers like to have the option to charge that fee, but frequently don't. In the PC business, I usually go back a 2nd time for a problem for free, but if the problem is user error I reserve the right to charge another service call. I'll frequently try to do those in conjunction with another call depending on the severity of the issue.
My point was the dealer using gas prices as an excuse for charging the fee.
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OK, I was thinking it was the standard today to charge for service. Maybe I'm wrong.
Only one dealer responded though. I guess it's not a subject most dealers want to talk about. :)
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Gombo,
I have dry rot and a leaky pipe... I was shocked that every plumber I called had a service fee.
I could find contractors for a free estimate, but no plumbers. The fee ranged from $35-75. Interestingly, one was the same co that did my AC last year with no service charge, so it is a new policy for them.
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Gombo,
I have dry rot and a leaky pipe...
So many inappropriate responses come to mind...
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I live 60 miles from my dealer (120 round trip + toll). He has said that he is instituting a $75 fee but when he replaced a motor I wasn't charged. My sides have faded and at some point he will be out to replace all four sides under warenty. My guess is he will charge me for that one.
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I'm a dealer and feel that a reasonable travel fee should be charged - outside a pre-determined radius of the store. The radius may be 25 miles, it may be 50 miles, but inside that radius is free, outside pays a fee based on how far outside the radius they are. The key is that the customer knows the radius and the fee up front, at spa purchase time. Our policy is free delivery of the new spa and no travel fee charged for service inside of a 30 mile radius from our store. Outside the 30 miles, the customer pays $1 per mile each way. Example: customer is 50 miles away - the delivery charge and service travel fee is $40. At times, and at our discretion, we may elect to waive the service travel fee. My sales staff can never waive the delivery fee. If they did, I don't feel it would be our right to charge the service travel fee.
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We NEVER charge a travel fee or ANY fee for warranty work. After the warranty expires, it is $65/hour for service with NO added on travel charges. We have always done it this way and our service department is actually profitable.
We have a HUGE territory (all of NE Texas and NW Louisiana). It's just another part of what has made us very successful over the years and maintain a 67% referral rate on new customers.
It's just a part of doing business the right way, in my boss's opinion.
Terminator
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$5 fuel surcharge on non-warrantied items that we charge to all customers regardless of location. We have about a 60-75 mile service radius.
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This surcharge stuff is hitting all over the place, it's not limited to spa people.
The place that hauls away our garbage has imposed a fuel service charge, for one.
I look at it largely as a way to raise prices while appearing to remain competitive.
If someone asks, our garbage service hasn't raised their rates in a year or two. But my quarterly bills keep going up because they're just tacking on extra stuff to the back end of the bill.
Happens on my cell phone bill, and my cable TV bill too, and banks are getting in on it, too.
The place I take my vehicles for service adds a certain percentage onto the back end and calls it shop supplies, or disposal fees.
I found out from someone I know that this is their way of adding revenue without increasing their prices.
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Brewman,
Your are so right in that so many American businesses and companies are looking for ways to make their prices look lower by all the add ons. In many negotiations, or purchases I'm known to say, "Ok, that is what the price is, but how much do I make the check out for?" But since this is a thread about Spa service I like what DPS said, " The key is that the customer knows the radius and the fee up front, at spa purchase time. "
Whatever the fee is, or if there is one, UPFRONT is great with me.
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Problem with the customer knowing upfront model is that things change. I can have a policy one day that says no travel charge, but things change. Unless specifically excluded in purchase agreement, I may have to change policy and, unfortunately, customers who in the past were not being charged are now being charged.
A side note. I was speaking to one of my credit card companies last night. I learned the grace period on my card is from when I make the charge, until the due date. That was a surprise to me, but I'm sure it was disclosed in some mailer with fine print.
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Problem with the customer knowing upfront model is that things change. I can have a policy one day that says no travel charge, but things change. Unless specifically excluded in purchase agreement, I may have to change policy and, unfortunately, customers who in the past were not being charged are now being charged.
A side note. I was speaking to one of my credit card companies last night. I learned the grace period on my card is from when I make the charge, until the due date. That was a surprise to me, but I'm sure it was disclosed in some mailer with fine print.
I see what you are saying. Perhaps the disclaimer "Subject to change" ;) You have to watch those credit card companies, their trick is to make a change and bury it in the fine print with the statement that says, The next use of your card signifies your acceptance of this fee/charge/change/policy. My bank does that with monthly statements as well
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Almost all warranties do state a travel fee can be accessed. It is up to the dealer.