Warranty Rate Increase

When two dealerships in the same state have identical OEMs, there may be a difference of up to 10% allowed or gross retained. This is why one dealer can hopefully get you hundreds of thousands while another claims they won’t push it too hard because their repair orders will affect sales volume. It means we need more information before estimating how much money could potentially change hands.

At Warranty Parts, our job isn’t just about getting high returns; It’s also maximizing what little resources exist by doing all possible things that would yield higher profits.

Some Variations
MSRP or Matrix Pricing

Matrix pricing is a parts markup process where the dealership determines what they will sell each part at. Flexible or “matrix” modes allow independent workers in different departments to set prices using inputs from their area, rather than having one set price for every item across an entire facility as with traditional systems that rely on manufacturer-supplied tapes; this allows discounts accordingly. Matrix pricing can increase your customer’s pay by up to 30% and gives you the ability to take advantage of any price drops in between manufacturing costs. This is best for businesses who want a higher markup but don’t have enough room under their supply chain management roofs.

Documentation Practices and Dealership Settings

If a dealer discounts many repair orders, it will lower the average markup percentage. This discounting generally does not apply to maintenance items unless an advisor adjusts your claim for $10 off of LOF specials and says that they are giving you this deal because your tire rotation was due or something similar in nature–then yes. The savings can be applied against parts/labor costs which would reduce rates accordingly.

How To Start?

The Warranty Parts Consultant will determine how much of an opportunity there is, so all information provided stays confidential. We charge per hour for these consultations, but it’s only based on estimated lift-to provide smaller stores with more flexibility while not taking advantage in larger departments like yours since they may already offer this type of assistance elsewhere or from third-party companies themselves at no additional cost to them – who knows what kind deals those could be?

If you like to determine the increased potential of warranty parts, then have the following documents ready:

If you like to determine the increased potential of warranty parts, then have the following documents ready:

  • Our experts will initiate your process once they receive the following documents.


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