Retail Observer

RETAILOBSERVER.COM MAY 2014 62 A ppliance Service companies sometimes struggle when it comes to finding a monetary balance between servicing warranty and collect calls. Though most service companies have set job or labor rates, payment is based on individual calls and not one flat rate. The struggle can be finding a contract that pays a servicer enough to make a profit rather than breaking even or taking a loss. There are benefits for servicer companies from partnering with a manufacturer. Manufacturers provide exclusive and specialized training, access to technical assistance; service based specific websites and service flashes as well as discounted part pricing to their factory authorized service centers. Manufacturers also give referrals and dispatched service calls through availability that servicers can often control. Clientele can also be built by partnering with particular manufacturers. Deciding your companies desired client base, high-end or standard, gives the direction needed when seeking out partnerships. It is through my experience from working in the appliance industry and processing warranty and contract claims for more than fifteen years that I can assure you there is a balance to be found when the following strategies are utilized: • Get prepared – Hire and train a skilled, trust-worthy, and determined claim processing person/staff. Billing claims takes time, concentration and a relentless effort now and then. Regardless of the rejection reason, the claim processing person must be willing to follow through with each and every claim until all payments have been collected. • Make each contract count – Every manufacturer and third party company that a contract is signed with takes away from C.O.D. call availability. Making sure that each and every contract has significant value and revenue potential as well as servicing the type of clientele base the company is focused on will prove to be a worthwhile contract. • Know your C.O.D.B. – Determining labor, mileage and part markup rates can be simplified if you know your company's cost of doing business. Knowing your company's CODB will allow you to make an informed decision when reviewing contracts and negotiating rates. • Checks & balances – It is essential to know your companies billing process. Make sure you track how quickly and efficiently the billing is being done. Being familiar with the billing process of each manufacturer and/or contract company you are working with is also key. • Reconcile – Your Claims Processor/staff should reconcile labor and part payments or credits every week. This includes all checks, direct deposits and credit invoices from part distributors. They will also need to be diligent with resubmitting claims for any parts and/ or additional labor that went unpaid. • Limit the number of warranty calls per day – Establish sched- uling guidelines for dispatchers. For example, limit each technician to four warranty or contract calls per day. By limiting the number of daily warranty calls, you are leaving availability for collect calls and repeat customers. • Negotiate annually – Ask for a rate increase every single year. Capture service data for each contract throughout the year. Know your annual cost of doing business increases and make sure to build a solid case for why your company deserves a reasonable rate increase. • Take full advantage of the contract – Make sure you are billing all components of a contract. For example, if the negotiated contract has mileage on it, bill mileage. If the contract allows for additional monetary reimbursement for sealed system recovery or sump replacement, bill the additional rate on each qualifying claim. Teach claim processors how to recognize and properly code these types of claims. • If the technician used it …bill it! – Make sure you are billing for all the additional truck-stocked parts that technicians often use in repairs, but aren't always listed on a claim. Example; perma gum, RTV sealant, insulation tape, dielectric grease, u/v filter driers, etc… • Advertise it – Tell your customers about it. If your company is factory-authorized to repair a particular brand of appliance, advertise it on your company vehicles, business cards, website, Facebook page, twitter and company uniform. Make brand recognition and loyalty work for your company. Becoming a manufacturer factory authorized service center is a give and take relationship. It is through these relationships that growth and additional revenue can be achieved. RO Jennifer Webert Mid America Service St. Peters, MO S E R V I C E D E P A R T M E N T WINNING AT WARRANTY

• Cover