Missed Warranty Revenue Calculator

How can jlwarranty's warranty claims processing service increase warranty revenue?

This is a question commonly asked by potential customers. However, different factors exist for each dealership, making it difficult to determine an exact amount. Some dealerships see thousands of dollars added to their bottom line while others may not see any additional revenue. Those dealers not experiencing additional revenue usually see valuable improvements in other areas such as help with claims compliancy, a decrease in overhead, and relief from the task of processing warranty in-house.

Missed Warranty Revenue Calculator

The following formula portrays a common scenario found in dealerships with ineffective warranty operations. Please input your own numbers in the section below to personalize the data or simply use the default numbers.

 
Insert your own numbers
How many technicians do you have?
What is your labor rate?
$
What is your warranty administrator's yearly wage?
$
What are your warranty administrator's yearly benefits (typically 25% of wage)?
$

Based on our experience we have found that most ineffective warranty administrators miss an average of 1 claimable labor hour, per technician, per week. If your warranty operations are not running as they should, your dealership may likely be losing $29,120.00 additional warranty revenue in just one year! Keep in mind, this does not take into account any unnecessary warranty claim write-offs, chargebacks, or neglected rejects that make the potential for lost warranty revenue much higher.

Now let's factor in a warranty administrator's salary. Their yearly wage = $25,000.00, plus additional benefits (vacations, FICA, Medicare, etc.) and training expenses = $6,250.00. So the total expense of an in-house warranty administrator = $31,250.00.

Ineffective warranty operations may be costing you: $60,370.00

($31,250.00 in salary expense combined with $29,120.00 missed warranty technician time)

jlwarranty's warranty claims processing service may add additional revenue to the dealership's bottom line via:
  • Clean-up of your current overage claims may free up cash flow
  • Claiming for maximum warranty reimbursement which otherwise may be going uncollected due to lack of experience or knowledge
  • Notifying you when you are not collecting for courtesy transportation, parts expediting, administrative time, and more.
  • Performing a GM IVH on every vehicle and notify you of any outstanding recalls helping to generate additional warranty revenue.
  • Elimination of overage claims, warranty write-offs, rejects, and factory chargebacks
  • Elimination of expenses from having an in-dealership warranty administrator. No more training, benefits, payroll taxes, disability, insurance, etc.

Let jlwarranty process your warranty claims to ensure maximum warranty revenue. The investment in jlwarranty's service usually increases warranty dollars enough to offset our cost. In addition to collecting missed technician time, we will apply all applicable administration time, material allowances, and ensure that the correct labor operation is applied. Substantially increasing your bottom line even more.

Subtract our low processing fee, usually less than what you are currently paying, from this amount and you have a sensible solution for your warranty operations.

Contact a Claims Processing Team Member at 800.852.6298

Learn More Get Started

Try These Warranty Calculators

Get started with a Warranty Analysis