Why don't detailers sell warranties? You are losing $$.

I

imported_Quenga

New member
I am 7 months away from grabbing my degree in business. I started my detailing company purely as a learning experience. I devote all my free time to learning about other businesses and detail to pay for equipment. I'm not so much into it to make it a 30 year career. My goal is to become a consultant, project manager or similar service. Way more money than detailing!



I got to wondering, why don't detailers offer fabric guard or paint sealant warranties? 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?



I remember getting excited to go through a tunnel car wash as a kid, and as an adult, I drove my cars through them all the time. Then, like most of us, I learned about detailing and my paradigm shifted. As with most detailers, I believe too far. I'd like to get input and respond accordingly, but why don't you offer a warranty program? It's "easy" money.
 
I've never given this any thought, but my first thought now is that we can't control what the customer does to the car after we are done detailing it. What if they put a big scuff in the paint and try to claim it as the sealant not doing it's job. Or if they put a burn in the seat and claim the protection didn't do it's job. While these things obviously wouldn't be covered under warranty, what if the customer is a d-bag and insists that it is and takes you to court. While they may never win, it's a huge headache we can all do without. It may be money, but IMO, it's money that could come with a huge headache. And what if someone wants to claim that you won't honor the warranty and puts it all over the internet and to uneducated people it makes you look bad. Too many dishonest people out there IMO that want easy money.



a large dealership or other company may be able to deal with these negatives, but to the sole proprieter, it's just not worth it. Just my $.02.



And the reason we bash dealerships for doing this is they ARE swindling people into thinking they are offering a permanent paint sealant, when it may be something that will only last a year at the most. And this "permanent sealant" is always disgustingly overpriced like the Simoniz sealant that lasts maybe a year that they claim is permanent and they charge $600 for it. It's not our opinion that these products don't do what the dealers claim, it is a fact.
 
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 Fermani said:
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.
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This is what I'm getting at. I think too many detailers are confused and too many "telephone" games have been played about what dealerships do and don't claim.





Explicit, you're thinking about it in the wrong way. Can you show me where a dealership offers a "permanent" paint protection coating? I hear about them all the time, but have never seen anyone provide evidence. Just a lot of gossip. The only time I've seen one it said nothing of the sort. It was a 5-year paint sealant, but you had to come back annually to have it touched up. I'm not denying some dealership offers it, just I've never seen proof.



I also think most people believe customers will actually take them to small claims court. One of my customers fought with a car wash company because they apparently ruined her steering wheel mechanism by spraying product all over the car. $3000 fix. She argued with them, but never went further. She's currently saving to pay for it herself.



The "fine print" states what the sealant does/doesn't do. You have to inform them that it does not protect against scratches, scuffs or bird droppings that sit on the paint for too long. It's up to you to explain it, but if you don't give it a shot, I think you're losing too much money based on gossip.



Also, many of the scenarios you listed are "what if" situations. Do you have any experience with anyone actually doing this to you or someone you know? I'm not trying to be negative, you were the first to reply and I already had this comeback ready, lol. The fact is, I don't know anyone who has! What if a meteor smashed into your garage and all of your equipment was ruined. Possible, but highly unlikely.
 
David Fermani said:
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.
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They do and will charge the detailer 45% more for the product.
 
Legacy99 said:
They do and will charge the detailer 45% more for the product.
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Which only makes it easier. Now, you don't have to handle the burden if any case pops up. I highly doubt Optimum will have very many cases to deal with. There is money to be made.
 
Quenga said:
This is what I'm getting at. I think too many detailers are confused and too many "telephone" games have been played about what dealerships do and don't claim.





Explicit, you're thinking about it in the wrong way. Can you show me where a dealership offers a "permanent" paint protection coating? I hear about them all the time, but have never seen anyone provide evidence. Just a lot of gossip. The only time I've seen one it said nothing of the sort. It was a 5-year paint sealant, but you had to come back annually to have it touched up. I'm not denying some dealership offers it, just I've never seen proof.



I also think most people believe customers will actually take them to small claims court. One of my customers fought with a car wash company because they apparently ruined her steering wheel mechanism by spraying product all over the car. $3000 fix. She argued with them, but never went further. She's currently saving to pay for it herself.



The "fine print" states what the sealant does/doesn't do. You have to inform them that it does not protect against scratches, scuffs or bird droppings that sit on the paint for too long. It's up to you to explain it, but if you don't give it a shot, I think you're losing too much money based on gossip.



Also, many of the scenarios you listed are "what if" situations. Do you have any experience with anyone actually doing this to you or someone you know? I'm not trying to be negative, you were the first to reply and I already had this comeback ready, lol. The fact is, I don't know anyone who has! What if a meteor smashed into your garage and all of your equipment was ruined. Possible, but highly unlikely.
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Ok, I'm all ears. I know I'm not always right, so I am very open to learning more about this. I have only had customers say to me that the dealer claimed it was permenant and it didn't last more than a year. So I assumed they are swindling people. Educate me, please.



I must stop making these assumptions, I must be missing out on something good.
 
Legacy99 said:
They do and will charge the detailer 45% more for the product.
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And you're also getting a lifetime warranty. Compare the price of their offering to what a new car dealer pays for their product+warranty.
 
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
 
ONE OTHER PIECE OF ADVICE!



Does the "application detailer" have to "buy"the warranty for each product they apply?



Or, is there a "reasonable registration" fee for a product.



If there is a "warranty" charge of say $35 or $50 or such, for each product, that is the sellers way of making the application detailer to actually pay for the insurance.



A "reasonable" registration fee is just for paper work of putting the warranty in a tracking system and all the other paper work for the life of the warranty. That way the "warranty" is kept and is available for the life of it and allows the "warranty holder" to make sure that should a legitiment come up, anywhere in the USA, the claim may be processed.



Grumpy
 
Sounds like a way to cheat people out of money blowing smoke up their ***. I'm not a very good liar, so count me out
 
Flash Gordon said:
Sounds like a way to cheat people out of money blowing smoke up their ***. I'm not a very good liar, so count me out
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Then I guess you should never buy insurance for your house, your car, etc.

A legitiment insurance company has the same sort of conditions for coverage, in their policies, just read them.

People buy these "warranties" because they just want to have some comfort level, and are not like those who come here and care for their vehicle, spending hours each month to keep the looking perfect.

It's a 'different" world, as there are those who have different needs, wants and desires than others.

Grumpy
 
Ron Ketcham said:
Then I guess you should never buy insurance for your house, your car, etc.

A legitiment insurance company has the same sort of conditions for coverage, in their policies, just read them.

Grumpy
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What does buying insurance have to do with "ME" choosing not to sale extended warranties?
 
Hi Flash - because a paint protection warranty is essentially the same thing as an insurance policy. They're both endourced/backed by insurance companies and pay out in the event of a claimable loss.
 
Because if the car care company that sells such, well, if they are legitiment, are doing the same as the other insurance you are paying for.

All I am saying is to "think" about why you purchase the basically same sort of "protection".

It is not a "business" choice for the majority of detailers.

One of the reasons that it is not, is that the "average" detailer is not in business or such (notice "such") for longer than 3 to 4 years and they go belly up due to not being business people, but practice being "polishers/cleaners", lacking in business abilities.

There are threads all over the site about the difference between being a "craftsman" and a 'business person" and why that it is so very important to know and practice the different education and business activities in order to be a success.

Grumpy
 
Ron Ketcham said:
Because if the car care company that sells such, well, if they are legitiment, are doing the same as the other insurance you are paying for.

All I am saying is to "think" about why you purchase the basically same sort of "protection".

It is not a "business" choice for the majority of detailers.

One of the reasons that it is not, is that the "average" detailer is not in business or such (notice "such") for longer than 3 to 4 years and they go belly up due to not being business people, but practice being "polishers/cleaners", lacking in business abilities.

There are threads all over the site about the difference between being a "craftsman" and a 'business person" and why that it is so very important to know and practice the different education and business activities in order to be a success.

Grumpy
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Thank you Ron. Well put.
 
I would like to point out that people like David F. and Ron, people who have been in the business a lot longer than all of us, understand where I'm going with this. Others, don't understand the value for both the detailer and the customer, but like to comment negatively based on rumors, hearsay and their uneducated opinion. All I'm trying to do is to get that negativity out of your head and for you to look at it a different way. You may see the positives. If not, I believe it's your loss and I don't personally care if you lose money. But, if I can help you make more money by simply altering your point of view, well then...cheers! You owe me a beer!





This is why I asked, "why are detailers forcing their opinion of quality/value down customer's throats?" You are losing money every single time you do that and you're only helping yourself, not your customer.



Let em explain why. This may get long:



Name a detailer that has never taken their car through a car wash? I did, even after I knew it was bad for my car. Who cares, car looked clean! Take a look at this car:



http://farm9.staticflickr.com/8210/8218803274_6f20697041.jpg



It looks shiny, but it has no wax, scratches and swirls all over it, and it was repainted on the rear quarter panel (any not very well). The owner herself told me, "it looks bomb after I drive it through the car wash, it doesn't need anything on the outside..."



To her, and the average consumer, this car is legitimately a great looking vehicle. To detailers, it's an eye sore. We need to remove our bias from these situations. You are NOT a better person for telling someone else that swirls are bad. You are simply trying to get them to see things your way. I like blue cars, my girlfriend likes white/silver cars. I hate white/silver cars...and? I love the All-American Combo from Jack-in-the-Box, some people say I'm disgusting! Ha! I love burgers!





It is up to YOU to educate the consumer. If you wish to tell them it's a permanent paint sealant when it's just some Turtle Wax, that's your business. However, what if you were to offer them Opti-Coat? It costs you $25 in product and gives them a warranty (assuming you can get Optimum to add you to their detailer list). Even if you can't, what's stopping you from creating your own Opti-Coat 2.0 service? David F. proved it'll last 2 years under undesirable washing conditions. Guarantee it for 5 years and reapply the coating after 2 1/2 years. Cost you $50? Charge them $599 like the dealership, you make $574 up front. Invest that and it'll grow to $650 in 30 months (2 1/2 years). Take out $25 to reapply Opti-Coat and invest the $625 again for another 30 months, it'll turn into $708. You sold them for $600, ended up making $708 profit. It takes what, an HOUR of your time maybe? 2 hours for $708 profit. Anyone making $354/hr? NO.



People already charge $250-$500 for Opti-Coat with no warranty. What's an additional $99?







You have to write the warranty right, assuming you warrant the product yourself. That's what protects you. Are customers going to fight you? NO. You just think they are. Sure, you might get someone, but, in my experience, no one does. And for $708 for 2 hours of my time, I can afford to fight that one battle. With an outlined warranty paperwork, you're not going to lose in a small claims court and no one's going to hire a lawyer. They have car insurance to fix car accidents.
 
Aside from the $ available, my biggest point is REPEAT BUSINESS. Even people that work on Ferrari's and Lamborghini's and seemingly only do full paint corrections all the time have repeat customers that keep them in business.



With a clear warranty, the customers must come back to you ever so often. This is your chance to sell them a maintenance plan, up-sell services and most importantly ASK FOR REFERRALS!
 
Well put, until ( and in my decades of both sides of this fence) have that ONE person who takes it to the limit.



Legal Eagles to protect you are not cheap, and they don't win your case every time.



Question that one must ask of themselves, "is it really worth it"?



This is, without a doubt, a very profitable area of business.



Just the one question remains, is one ready to not just make the money, but defend and such the hassle that may come with it?



Grumpy
 
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