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DSK

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Engine News from Genmar

wrote:

I can't speak for the outboard biz, but for consumer electronics and
other items, the manufacturer pays the dealer for warranty labor, and
profit on any parts used. In my state, the law says they have to pay
the same rates as over the counter retail customers.

AFAIK there are some rules like that here too, but it doesn't seem to work out in
practice.

For many service departments, it's warranty work that pays the bills
and keeps the lights on.

So, that means they have an incentive to sell inferior hardware that has a higher
likelyhood of coming back to visit? Perhaps it's profitable in the short run, but
it sounds like a very poor business plan to me.

My company warrants all our work and our incentive to do things right the first
time comes from a fat profit sharing check at the end of the year.... or lack of
same...

Fresh Breezes- Doug King

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