Why don`t detailers sell warranties? You are losing $$.

[C. Charles Hahn]

Edit: I have a business degree also, and have found very little of it applies to actually starting and running a business. It more prepared me for the corporate world, which I`m not interested in working in. Just my .02.

TOTALLY agreed! I`m a semester away from a Business Administration degree as well. There`s a ton of stuff that isn`t covered or talked about at length by any means.

[Ron Ketcham]

A few years before I retired, one of our field sales people wanted to make a program available to car washes that had detailing services and established detailers, one they could work with like a new car dealership.

We put together such a progam, focused on those type of businesses.

It failed, yet the warranties, the sales materials, the whole program was the same that the company had been in the market with since 1980, for new car dealers, only directed at a different part of the auto services industry.

Why,---?--- car washes and detailers do not know the way of the "car business".

Dealerships have trained staff that sells, on commission, extented service warranties, after market accessories, etc, they have specialist (finance) who know how to move the sale forward, make the customer comfortable, get the deal done.

And, they can "fold" the cost into the complete deal, so it`s "just pennies a day for the security of peace of mind" in the monthly payment.

It`s not your selling of detail services, it`s not removing scratches, putting on a nice shine and a coat of wax, of clearing up the headlights, or cleaning the odor and carpets from a car.

Whole different world.

Grumpy

[derek37]

This subject requires some "real" investigaion of the companies that "provide a warranty for their products"



Such as "who are they, really?"



"How long have they been in business of providing warranties/warrantied products, and are they just in a localized area or is the customer able to obtain warranty resolution all over the USA?"



"Does a through check of their business, show that they actually honor the warranty sold?"



"Is the warranty written in plain English(or whatever lanquage" that makes it very clear what is covered, for how long and what is the requirements of the vehicle warranty, what is the requirements of the "seller" and "application company" of the product/products?



Who administrates the warranty and any claims?



IT IS NOT THE DEALER WHO ADMINISTRATES OR PAYS THE CLAIM, IT IS THE COMPANY THAT SOLD THE PRODUCT AND "WARRANTY" TO THE DEALERSHIP. (this is where the detailer gets put on the "hook")



What is the exposure of the application company, are they legally liable for any claims?



Is it possible for the buyer to move to another area of the country and still be covered, to obtain resolution of a claim, should it be necessary? (in today`s world, people move a lot, out of the area where they were when they bought products/warranty)



Should the application detailer be able to be reimbursed for any corrective work and does a check of the history of such show that they are?



A "big" thing in the "warranty" business is "who is the insurance carrier" for claims, or is the company "self insured".



This means that if "self insured", and they do NOT honor their warranties, IE pay as per the legal wording and coverage of the warranty, have not been in business for over 10 years, they will close up shop when the claims come in and leave the "detailer/dealership" holding the cost of making it right. ( research such company`s as Thermo-Gard, Ultra Seal, etc)



Chose a company that has been in this sort of business for over 10 years, Google them. Sure, as with any insurance/claim situation, there will be some negatives, but look at the percentages, as often it is not that a reputable company does not pay a legitiment claim, but the customer is abusing the written warranty and it`s requirements.



Most "real and long term" companies have written in the warranty, a time to respond, and as like the rest of the world, some will attempt to make claims that are beyond the requirements of the time allowed and the actual warranty as written. (your roof is 20 years old and now you notice it is wind damaged, etc)



There is "paper work" required, there are often, "not real world" sales claims made in the brochures, that have nothing to do with the "actual" warranty and what is required by the customers in order to maintain the vehicle and submission of any claims.



That is where the "rip-off" by such companies come into play and have given the whole thing a very bad name.



You got a Chrysler product, buy the Master Shield product offering, as it is covered and administered and paid by Chrysler, not some one who works from a UPS post office box.



You want to get in the business for other brands of cars? Find one that has been around for over 30 years or such and "READ THE WARRANTY(carefully and be able to understand it`s limitations and requirements yourself before selling the products)--read THAT WHICH THE CUSTOMER RECEIVES AND HOW MUCH SMALL PRINT IS THERE THAT PUTS THE ACTUAL BURDEN OF CARE ON THE CUSTOMER"



Grumpy

Good stuff Ron.

[derek37]

Damn, this is a great thread, from both sides of the subject.

[imported_Quenga]

You know, if someone else suggested this topic, it would go a lot differently. I don`t understand the negativity or suggestion that I`m offering a get rich quick scheme. I`m throwing out ideas and numbers to generate discussion, not an argument. I will receive no benefit suggesting this topic except for an education on the topic. I am not selling a warranty program, a product or promoting anyone that does. I am simply trying to change the negative and closed minded point of views towards this subject based on gossip.



How many of you sell Fabric Protection, Opti-Coat, Wax, Paint Sealant, ClearBra`s, etc? Do you not tell your customers a paint sealant lasts longer than wax, but waxes look better? Do you not charge someone $50 to spray $10 worth of Scotchgard on their seats? Do you not charge $200-$500 for Opti-Coat installation on top of a detail?



10 years ago, technology could not support a valid warranty program for small business detailers. CarPro is offering a 2-Year Warranty with CQuartz Finest and Optimum is coming out with their own on Opti-Guard/Opti-Coat Pro Warranty.



20 years ago the touch screen tablet was introduced. It failed because it was ahead of it`s time. It was slow, unresponsive and too expensive. Tell Apple how stupid that idea was now.



I believe warranties are a beneficial service that is now possible. How many people sell Fabric Protection and suggest it annually? Do you tell people they need a wax every 3 months, even if the wax lasts 4-6 months? Hell yes you do! Do any of these services guarantee you repeat business? NO. A well thought out warranty program CAN.





Let me throw out some other topics that once received a lot of flack. DA`s for paint correction. 5 years ago when I started detailing, that was pretty much a true statement. Now? How many of you just bought a Rupes!! M105 fills in scratches because of all the oils. Say whaaaaaaat? Opti-Coat cannot last years...study done by David F. after two years finally help sell people on the idea of Opti-Coat. Anyone question it`s durability now? ONR doesn`t work!! Hmm, how many people sold their big rigs and now detail out of passenger cars? Opti-Seal can`t work!! In 15 minutes I make $40 thanks to Opti-Seal. Damn, maybe I should be working for Optimum, lol! I accidently just promoted a lot of their products which questioned the status quo. Uh, Speedy Prep Towel? Nanoskin pad? IronX? Sonax?





I offer a 2-Year Warranty on my headlight restorations. No paperwork, no signatures, nothing to back that statement up. If it fails, I reapply the coating. Don`t want the warranty, don`t pay the full price. Guess what? Everyone pays the full price!! They want the warranty, even if it`s not on paper. They can`t claim anything against me, no proof I offered this to them. But, will I fix it if something goes wrong? Hell yes! I`m not a shady person and I`m not suggesting you need to be to sell a warranty. Be upfront and honest. If you don`t wish to take the time to do this, like others have said, it`s YOUR business decision.



I also require all customers to book a wash every two weeks if they want a wash service. Do they flinch? Nope. If they want every three weeks, I don`t budge, it`s not worth my time. I charge extra when I have to travel too far for just a wash. Do I tell clients this? Yes. Do they still book the washes every two weeks? Yes. There is no harm in educating your client and selling them an honest service.

[rustytruck]

I`m not knocking your idea I`m just saying that there is more to it than you think. Dealers offer their warranty nation wide. If you by fabric protection and are covered for 7 years that means if you get a stain in your seats they(the dealer) is responsible for removing it. Even if you bought the car in FL and 6 years later you live in CA. There are ford dealers in every state. Do you have locations in every state? My sister bought the fabric protection on her new Rav 4 a few years ago. Basically she gets to have the interior detailed up 2 times a year to have her stains removed because her 3 kids make a mess of the car. She does not even need to bring it to the dealership. They will pay a detailer to do it as long as he uses hot water extraction method. This is one example of why I would not work for my company. I could not stand behind a warranty like that. It would have to involve the chemical company offering a nationwide network of detailers to back the warranty.



Your idea is not a bad one, you need to pitch it to a manufacturer who can then build the network of detailers that want in. then we can all sell the service and also have the network to back what we are selling. If done the right way you can count me in.

[David Fermani]

Edit: I have a business degree also, and have found very little of it applies to actually starting and running a business. It more prepared me for the corporate world, which I`m not interested in working in. Just my .02.

Book work and college teach you very little about the real world unfortunately. Some of the greatest business people I know don`t have any formal education.



Looking back, I learned more life long valuable information about the business world selling cars, managing a car wash and owning a detail business then I did by wasting 5 years of my life securing a Marketing/Management degree. Sure, it looks great on a resume and is a prerequisite for many corporate jobs, but I`d much rather consider hiring someone (for a business position) that learned from the school of hard knocks then someone that was fresh out of college without any credible work experience.

[(901)]

I also require all customers to book a wash every two weeks if they want a wash service. Do they flinch? Nope. If they want every three weeks, I don`t budge, it`s not worth my time. I charge extra when I have to travel too far for just a wash. Do I tell clients this? Yes. Do they still book the washes every two weeks? Yes. There is no harm in educating your client and selling them an honest service.

Right here I have a problem. For washes to be worth my while, I have to charge $100+. Not many are willing to pay that (which I understand)



I have no idea what people do to mantain their finishes after they leave my place. I would imagine many use the tunnel wash or the $10 parking lot guy despite my plea not to



I`m not dead set against your idea, and as a matter of fact have been looking into adding a permanent coating line. I just don`t wanna get stuck with some psyhco whackjob that can never be pleased



Sorry if I offended you :dance

[autoconcierge]

There is a vast divide between making money............................ and knowing what is right, some are in the comfort zone with marginal ethics as regards to what a service and/or product can do. Those people NEVER have longevity in the trade or any venture they are part of because one man`s marketing prowess is another`s definition of a lie.



Here is some things to consider that we have all heard, youngin`s usually are not privy to these statememnts or sayings as they do not have years on their "Life odometer".



1. "There is a sucker born every minute"

2. "The check`s in the mail"

3. "Trust me I know what`s best"

4. "Get the second product free..........just pay seperate shipping & handling"



Corporations employ armies of lawyers & bean counters/marketing guru`s to get your money with a "Buy low - sell high" mindset, dealerships are known for this and F & I departments are spiffed big bucks for fleecing people daily and the people who are attracted to this way of thinking always feel and or know they ARE smarter than you.



Business is defined as providing goods or services at a good to great profit margin, companies that stand the test of time do so thru their reputation of conducting business with quality, fairness and integrity.................. no matter if you think you are getting away with something you really never do in the end and a legacy established good or bad will be the benchmark.



The detailing trade is rife with "Fluffing it up" to make things seem more than they are, I will conclude with this................ just because you speak loudly does not mean you are saying anything worth hearing.

[Richard Grasa]

Quenga, I have to ask, going back to your original post, where you say this: "Why does everyone call them a gimmick and bash dealerships for swindling customers? Why are detailers forcing their opinions of quality and good business practice down their customers throat?"



Why do you make this statement on your website: "Do NOT purchase any dealership or detail shop paint or fabric protection plan. They are gimmicks and filled with fine print that will shock you!" ?

[Richie's Custom Detailing]

The ones that ARE doing the warranty services are among the most successful in the industry. Hopefully Optimum will give more detailers a chance to finally offer a product/service that works and see the big picture.

David,



Who do you consider to be the most successful in the industry?



I consider myself to be pretty successful and I don`t offer a warranty of any kind.



http://youtu.be/cf4C9ssuPjE

[RaskyR1]

Every time I buy new cars or electronics I always opt for the extended warranty!





























NOT!!!

[RaskyR1]

Quenga, I have to ask, going back to your original post, where you say this: "Why does everyone call them a gimmick and bash dealerships for swindling customers? Why are detailers forcing their opinions of quality and good business practice down their customers throat?"



Why do you make this statement on your website: "Do NOT purchase any dealership or detail shop paint or fabric protection plan. They are gimmicks and filled with fine print that will shock you!" ?

They are banking on you never returning with a warranty claim. If you do happen to file a claim they will try and find a way to void it on the basis of neglect or failure to comply with the terms (See annual inspection/reapplication).

[Richard Grasa]

They are banking on you never returning with a warranty claim. If you do happen to file a claim they will try and find a way to void it on the basis of neglect or failure to comply with the terms (See annual inspection/reapplication).

What I`m asking is why is he defending the dealers in his first post, wanting to know why detailers call these things gimmicks, yet bashing them on his website saying these things ARE gimmicks.

[imported_Quenga]

Book work and college teach you very little about the real world unfortunately. Some of the greatest business people I know don`t have any formal education.



Looking back, I learned more life long valuable information about the business world selling cars, managing a car wash and owning a detail business then I did by wasting 5 years of my life securing a Marketing/Management degree. Sure, it looks great on a resume and is a prerequisite for many corporate jobs, but I`d much rather consider hiring someone (for a business position) that learned from the school of hard knocks then someone that was fresh out of college without any credible work experience.

Degrees don`t make you successful, but they are a start. I don`t use college to get me a job, I use it as an opportunity to learn from others. I do not go to a traditional 4-year college. Most of the people are in their 30`s-50`s and "re-inventing" themselves. I network with these individuals and learn from their experience. I`m also majoring in Entrepreneurship and learning from teachers and mentors that have survived the test of time and become successful.



"A formal education will make you a living; self-education will make you a fortune." Jim Cohn, mentor to Tony Robbins.



I just stated I am pursuing a degree and look at things differently. Some people want to be the best, some just want to make a living. I do quality work, I`m not shady and I stand behind all of it. I even offer a money-back guarantee and ALL my customers understand what this means. I will force my customers to listen to me and agree to my terms, lol. I protect myself, I`m not saying that`s not on the table.

Right here I have a problem. For washes to be worth my while, I have to charge $100+. Not many are willing to pay that (which I understand)



I have no idea what people do to mantain their finishes after they leave my place. I would imagine many use the tunnel wash or the $10 parking lot guy despite my plea not to



I`m not dead set against your idea, and as a matter of fact have been looking into adding a permanent coating line. I just don`t wanna get stuck with some psyhco whackjob that can never be pleased



Sorry if I offended you :dance

As a new business, I can afford to wash cars bi-weekly. Right now it`s a marketing opportunity. When I break out the wash mat, say hi to people as they walk/drive by and get to know people in the neighborhood, I am constantly marketing my services. Until I am busy enough to require minimums, it`s an opportunity cost I`m willing to take. It`s working well for me.



Again, I started the business to learn hands on. I am not concerned about making a full-time living off this stuff. As said, it`s hard work and I`ve already got bad knees and a screwy back. Even if I wanted to, I could not stay on the labor side of things for too long. I am destined to be behind a desk, and behind a desk, you have to think differently. NOT unethically, I am NOT about that. Is it unethical for people to put things on layway? Is it unethical for people to pay interest on credit cards? (the rates, maybe, the idea, no).



For instance. For monthly maintenance plans I require customers to pay $200 up front. They get weekly washes, monthly waxes and bi-annual details. In the end they save up to $200 from paying my regular pricing. However, I get $200 up front. Is that unethical? I don`t think so. I haven`t had a customer think it was. If they did, well I have other options for them.

Quenga, I have to ask, going back to your original post, where you say this: "Why does everyone call them a gimmick and bash dealerships for swindling customers? Why are detailers forcing their opinions of quality and good business practice down their customers throat?"



Why do you make this statement on your website: "Do NOT purchase any dealership or detail shop paint or fabric protection plan. They are gimmicks and filled with fine print that will shock you!" ?

You`re right, I wrote that, because I had my head pointed in a different direction. I wrote it a long time ago and never fixed it. A conversation I was having with a few other entrepreneurs spiked my interest. Research on other warranties and companies already offering these services (CarPro/Optimum) changed my point of view.



Are the dealerships really selling a gimmick? That`s the question I asked myself. As someone mentioned above, someone gets their car worked on twice a year. I think she`s getting her monies worth. Am I suggesting you sell the same warranty? No. Can we, together, as independent thinkers, detailers, professionals...come up with a better warranty? One that is more up front with customers? The dealers can afford to clean the car twice a year, we can`t, so why would we imply this in the warranty?





From my point of view, it`s good for detailers, better for customers to buy a warranty from us than the dealership. When you purchase a warranty from a dealership you are paying a commission to the sales person, a commission to the dealership and an underwriting fee to the insurance/warranty company. Do they hope you don`t come back? Probably, but health, car, dental, vision, unemployment, medicare and social security all hope you don`t collect either. To me, that`s too much of a cynical point of view. Do some think that way, yes, I do not deny that.







Again, can we offer a BETTER warranty for our customers? We already charge extra for a better service. People already charge extra for Opti-Coat. Did I once think the dealerships were complete ```````s? Yes. Do I see an opportunity to offer a BETTER warranty that benefits the detailer and the customer? I think so.





What if I came up with a warranty program that all detailers could buy in nationally. The fund would be the insurance for the disaster scenarios. You can require customers to come back to you. I already tell my customers I don`t guarantee anything done by any other detailer or car wash. If they don`t use me for all maintenance, they don`t get any warranty. That includes my headlight restorations. IF the customer doesn`t agree to my terms, they don`t get the warranty. I protect myself and keep them as a regular. If not, I do not agree to any warranty, guarantee, promise or other such insurance.



It`s only the spark of an idea. I realize there is much more to it. Unlike most of you guys, I have the time to dive into this. This IS what I started my business for. I don`t need to detail to make money. I have already learned a lot from everyone`s input. Both for and against it. I think it`s possible. Google is "just another search engine", why would they ever take on Yahoo!??