Originally Posted by mwebber78
That's a poor excuse from the dealer. Jayco pays shop rates within normal limits - just like your car. No, dealers don't get a fat margin like non-warranty work but they don't loose money either, unless they simply like to work at a slow pace. A good friend of mine owned a rather large dealership that sold a upper and lower end unit. The dealership openly serviced all units, first come first served. The dealership also did mobile repairs for both warranty and non-warranty repairs. The dealership was so popular the family was bought out by Mark Lemonis who owns Camping World. IMHO there are dealers who use this excuse as a crutch to support inflated unit prices... It sounds like Jayco supports that type of behavior.
I couldn't disagree with you more. Although I too want to buy my RVs from the dealer willing to provide the lowest purchase price and have any necessary service done at the dealer most convenient to me, that just isn't the case and can't be the case. Every business has their own "burdened cost" to operate and must generate profits to cover their costs and what they consider to be an appropriate ROI for their risk in being a business owner and based or the expectations of their shareholders.
This is nothing more than a simple case of economics....
- Shop rates vary wildly across the country. I personally know in my area 90-110 is typical and from time I spent in OK $70-$80 was more typical. Is that a result of a greedy shop? Doubtful, it’s a reflection of the different cost to operate business in different areas. Being that mfg reimburse on at the same rate nationwide, by definition warranty work can be good business in some areas and not others. Apparently in Maine its good business.
- When non-warranty work is performed payment is due upon completion. Warranty work however often takes 60+ days to be paid. Now you are asking the dealership to float that money to the mfg, there is a cost associated with temporary "loss of capital"
- If a dealer is performing warranty work, there is the “opportunity cost” of not being able to perform better paying jobs because the techs are tied up with warranty service. Dealership are willing to absorb this opportunity cost for an actual customer, but they should not be expected to from someone who isn't a regular customer.
- Lastly, car dealerships would love to be able to have the same model but the market has forced auto makers to contractually require their dealerships to provide warranty services regardless of purchase location. Until the market sends the same message to RV mfgs to require same, this practice won't change and shouldn't change.
I said its simple economics, but really is a lesson in capitalism and everything that makes this country great.
EDIT: I should point out I too didn't buy at my local dealer (30 miles) because they wouldn't work with me on price. I went to a dealership 120 miles a way. I drove by two Jayco dealerships for the one trip in for warranty work I had perfomed.