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Originally Posted by Deltona Couple
Let's see.....To make it easier to understand, I work at a local Chevrolet dealership as a team leader in the service department....
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Just curious, what has your dealership done with customer pay labor rates? I work on the claims side of the extended warranty business and we have noticed a HUGE increase in labor rates in the last few months. We have dealers that sell our contracts that were at $82/hr in 2004 and $100/hr 6 months ago are demanding $130-135/hr now. I guess they are trying to make up the loss in sales by getting it all back on the service side. Plus we pay MSRP on parts and most shops charge 10-25% over MSRP. It used to be the dealers that sold the service contract didn't go after the customer for the difference, but now a lot of them are. Plus we are getting hammered on upsells. Then shops get pissed when we send adjusters out to the shops to verify everything. Our average claim cost has gone up almost 35% in the last year, which I worry will hurt the viability of my company in the next year or so.