Firstly, let me preface my comments. Up until a few years ago I spent the last 30 years working in various dealership Service Departments in Australia & Europe as a service manager/advisor and/or warranty clerk. This includes franchises for Holden, Honda, Fiat, Lancia, Nissan, Mitsubishi, Mercedes Benz, Porsche, Chrysler, Ssangyong, Daihatsu and TOYOTA.
IMHO Toyota treat their dealers like cr*p. If there is one thing out of place with the claim/repair procedure they can refuse to pay the whole repair job. Then, even if they do pay the claim they can take the money back later during the yearly warranty audit! Of course it is the big ticket items (like a V8 engine replacement) that they look at first during an audit.
All the poor dealer wants is to make sure he is going to get paid before he undertakes a $10K or more repair.
On the other hand, all service department staff are paid huge incentives, normally on a retail dollar per invoice basis or retail gross profit. Warranty repairs are paid for by the manufacturer at a much lower rate. This is why they (the service advisor or manager) will always try to convert a warranty type repair into a retail repair.
So no wonder it is such an uphill battle for the average punter to get a large warranty claim recognised by the dealer.
On the subject of oil pricing, oil has the highest gross profit margin of all sales (Labour, Parts, Sublet Repairs and Oils) in any service department. I have seen industry benchmarks and it is not uncommon to see P.O.L. (petrol, oils and lubricants) running at 200% gross profit or more. Dealer principals push their Service Managers to achieve these benchmarks as a minimum KPI (Key Performance Indicator) just to keep their jobs!!
These are just my own thoughts (donning flameproof suit) from years of observation.
Wozz L Gummich




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