Service contracts and warranty claims can be a significant expense and time killer for dealerships. Some of the increased cost is hidden and some are very apparent. Every time a claim is handled by phone, it adds to the cost of your admin fees. These fees can quickly add up, reducing the profitability of each contract sold. Unknowingly to the dealer, some well-known companies charge 9 to 11% claims fees for every claim and the dealer never sees it because it is hidden deep in the cession statements. In addition to the cost of admin fees, businesses also face the expense of credit card fees when accepting payment for claims. This means that every time a claim is handled manually or paid for with a credit card, the dealership is losing money.
One solution to these losses is the use of automated systems for handling claims. Automation can reduce the need for manual intervention, reducing the cost of admin fees. In addition, automated systems can also help to streamline the claims process, making it faster and more efficient. This can help to reduce the overall cost of handling claims and can improve the customer experience, while also minimizing the losses incurred by the dealership.
Another benefit of automation is the ability to accept electronic payments. By using an electronic net remitsystem, dealerships can reduce the expense of credit card fees. This can help to increase profitability and recaptures 2% to 3% of lost service profit. By eliminating the losses associated with manual handling and credit card fees, automation can help to improve the bottom line for the dealership.
Overall, the use of automation can help you recapture lost profit due to higher fees, increased labor and improved shop efficiency. By minimizing losses and increasing profitability, businesses can save money and provide a better experience for their customers.
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