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When visiting dealership after dealership, one of the glaring opportunities we discover, is “dated customer warranty parts” sitting on the shelves, on racks in a C-can storage unit, or in the back-warranty room.

When asking personnel about these parts and open R.O.’s we typically get the following response; “I’m trying to get a hold of the customer to get them back in here” or “I left several messages and the customer hasn’t called me back yet”

Obviously, this is an issue because we have thousands of dollars in parts with thousands of dollars in freight charges that need to be sold over on a repair order, installed and then the repair order closed out.

When these parts continue to linger, and get dated, typically at the end of the year they will get written off, which no one likes to do and becomes very detrimental to the operating profit of the parts department.

The opportunity to eliminate these write-offs starts with the advisor during the write-up and check-in process with the customer.

Specific conversation, education, and inter-action is needed with the customer every time a potential warranty part needs to be ordered, and the customer is going to use their vehicle while waiting for the warranty part to arrive.

The above-mentioned problem only happens when the customer’s vehicle is not at the dealership and we did not educate the customer about the process to get warranty parts and the length of time which it will take the manufacturer to ship these specific parts.

In this month’s video, I share specific word tracs that are needed with the customer when this opportunity arises to eliminate miss-communication with the customer and to set reasonable expectations.

When your advisors start having these conversations regularly with our customers, we will eliminate unwanted warranty parts sitting on the shelves and more importantly, eliminate these costly write-offs we’ve been experiencing year after year.

Additionally, we save a lot of employee/personnel time regarding the process of diagnosing, ordering, tracking, receiving and then trying to follow-up with a customer to inform them that their parts are finally here, only to find out the customer is not available or no longer finds that parts important to install.