How do you charge for warranty failures?

D

DaveC

Guest
I do network installs in small businesses and homes.

Occasionally, I have to replace a failed router, or such, during the 30-day
warranty period my local supplier gives me for direct exchanges. Outside that
period, it get sticky: the unit has to be sent to the factory for exchange,
which necessitates me (or someone) buying a replacement to install
immediately.

How do y'all see such costs? Do you just "eat" the labor you spend replacing
the unit? Or do you charge labor to swap out the unit (ie, warrantee the
unit, but not the labor)?

Comments from all specializations (audio, etc.) welcome.

Thanks,
--
DaveC
me@privacy.net
This is an invalid return address
Please reply in the news group
 
DaveC wrote:
I do network installs in small businesses and homes.

Occasionally, I have to replace a failed router, or such, during the 30-day
warranty period my local supplier gives me for direct exchanges. Outside that
period, it get sticky: the unit has to be sent to the factory for exchange,
which necessitates me (or someone) buying a replacement to install
immediately.

How do y'all see such costs? Do you just "eat" the labor you spend replacing
the unit? Or do you charge labor to swap out the unit (ie, warrantee the
unit, but not the labor)?

Comments from all specializations (audio, etc.) welcome.

Thanks,
Click to expand...
Hi...

Buy (or aquire) a "loaner" of your own. Install it for
them while their's is being replaced.

When their's is ready, switch back for them, but do it
at your reasonable convenience... ie when you're in the
neighborhood and have a few minutes to spare...

Charge them once. You do want to keep the customer,
right? And you do want the good will to spread by
word of mouth, right? :)

Take care.

Ken
 
In article <0001HW.BCC996AA000A1743F03055B0@news.individual.net>,
DaveC <me@privacy.net> wrote:
:I do network installs in small businesses and homes.

:Occasionally, I have to replace a failed router, or such, during the 30-day
:warranty period my local supplier gives me for direct exchanges. Outside that
:period, it get sticky: the unit has to be sent to the factory for exchange,
:which necessitates me (or someone) buying a replacement to install
:immediately.

:How do y'all see such costs?

Give your customers the choice of different cost/service levels.
Replacement within N hours is one price, next business day is another
price, return to factory is a third price, etc.. Then your
customer knows what to expect, and you get a cost tradeoff according
to your risk and your potential inconvenience.

When you offer different service levels at different prices, the
customer gets to choose their expectations, and you and the customer
get what amounts to a Service Level Agreement. It's when you and the
customer have not agreed upon the expectations ahead of time that you
run into questions such as yours.
--
"WHEN QUINED, YIELDS A TORTOISE'S LOVE-SONG"
WHEN QUINED, YIELDS A TORTOISE'S LOVE-SONG. (GEB)
 
Set a schedule of pricing for specific services. Within the "Warranty
Exchange" period, after the "Warranty Exchange" period, and total COD after
any "Warranty" has expired. Post your fees and explain them openly to your
customer. Hold to your fees and be able to competently explain the need to
recoup your cost to do their support. The "loaner" idea is nice but you end
up building a inventory of items which you can't recoup, especially if a
customer refuses to return your loaner or if one gets damaged. The average
consumer understands the facts that service, especially on site, is
moderately expensive and that someone needs to be responsible. You already
know the manufacturer of the devices will not cover these costs and
informing your customers will resolve that problem. I personally don't feel
that it will alienate your customer base [if properly implemented]. Give
them the choice of sending the defective item to the manufacturer
theirselves, waiting the 10 days to 3 weeks, or renting a temporary
replacement device, at a nominal fee, from you. Unless you personally are in
a fiscal position that you can loan these items out charte blanche??
"Walter Roberson" <roberson@ibd.nrc-cnrc.gc.ca> wrote in message
news:c81iuq$flr$1@canopus.cc.umanitoba.ca...
In article <0001HW.BCC996AA000A1743F03055B0@news.individual.net>,
DaveC <me@privacy.net> wrote:
:I do network installs in small businesses and homes.

:Occasionally, I have to replace a failed router, or such, during the
30-day
:warranty period my local supplier gives me for direct exchanges. Outside
that
:period, it get sticky: the unit has to be sent to the factory for
exchange,
:which necessitates me (or someone) buying a replacement to install
:immediately.

:How do y'all see such costs?

Give your customers the choice of different cost/service levels.
Replacement within N hours is one price, next business day is another
price, return to factory is a third price, etc.. Then your
customer knows what to expect, and you get a cost tradeoff according
to your risk and your potential inconvenience.

When you offer different service levels at different prices, the
customer gets to choose their expectations, and you and the customer
get what amounts to a Service Level Agreement. It's when you and the
customer have not agreed upon the expectations ahead of time that you
run into questions such as yours.
--
"WHEN QUINED, YIELDS A TORTOISE'S LOVE-SONG"
WHEN QUINED, YIELDS A TORTOISE'S LOVE-SONG. (GEB)
Click to expand...
 
DaveC wrote:
I do network installs in small businesses and homes.

Occasionally, I have to replace a failed router, or such, during the
30-day warranty period my local supplier gives me for direct exchanges.
Outside that period, it get sticky: the unit has to be sent to the factory
for exchange, which necessitates me (or someone) buying a replacement to
install immediately.
Click to expand...
Yes, if you're in business, you should build up an inventory of "hot" spares
so you can make replacements immediately without a trip to the store.
Interest on inventory is just part of the cost of doing business.

How do y'all see such costs? Do you just "eat" the labor you spend
replacing the unit? Or do you charge labor to swap out the unit (ie,
warrantee the unit, but not the labor)?
Click to expand...
Depends entirely upon what value you place upon customer satisfaction,
tempered by the financial realities of staying in business.

--
John Miller
Email address: domain, n4vu.com; username, jsm

Is this an out-take from the "BRADY BUNCH"?
-Zippy the Pinhead
 
Well, there are several ways you can attack this problem:

1. Contact your Distributor. See if they will help you eat the cost, when
one of THEIR products fail. You may need to play a few word games with
them, but you may be able to get them to help. Maybe if you promised them
"X" amount of sales in a month. Make it sound like you have so many
Distributors that you don't have to use them. However, don't expect them to
fall in. It is just a game you will play with them, and maybe "Bluff" them
into eating some or all of the labor charges for swapping out the product.
2. Ask the Distributor if they have "Re-Conditioned" products that you can
use for loaners incase one of their products fail. Usually you can get them
cheap, and won't be out a major cost incase you need a loaner. If they make
you purchase them, then you won't have to worry about using a new one. But
keep in mind how many you will need. If you have 5 cust. that are still
under the warranty, then keep one or two on hand (Just an example). Just In
Case. Better Safe then sorry.
3. STATE IN YOU CONTRACT YOUR WARRANTY! If you ONLY cover the replacement
of the product, and not the labor. State that. Make sure the customer
knows! Maybe offer an Extended Labor Warranty, that will cover the cost of
a service man to come out and do any work, for a certain amount of time
(I.E. 6 Months, 1 Year, ect.). If they refuse, then make sure they know
that they will get charged for any repair work done. Also, list what is
covered. Maybe you will cover the hardware, but not the accessories (I.E.
Cables, Software, ect.). State everything, before they sign. You don't
want to be forced into court, or lose people because something was unclear.

These are just a few suggestions. I am sure if you let your mind wander,
and think business like, you can think of more. Think on the lines if you
were the customer, what would YOU want. Make sure they know the Warranty of
the Hardware verses your labor. Remember, they came to you. They didn't
go to someone else. So there is a reason you have the business. Keep it!

Rick


"DaveC" <me@privacy.net> wrote in message
news:0001HW.BCC996AA000A1743F03055B0@news.individual.net...
I do network installs in small businesses and homes.

Occasionally, I have to replace a failed router, or such, during the
30-day
warranty period my local supplier gives me for direct exchanges. Outside
that
period, it get sticky: the unit has to be sent to the factory for
exchange,
which necessitates me (or someone) buying a replacement to install
immediately.

How do y'all see such costs? Do you just "eat" the labor you spend
replacing
the unit? Or do you charge labor to swap out the unit (ie, warrantee the
unit, but not the labor)?

Comments from all specializations (audio, etc.) welcome.

Thanks,
--
DaveC
me@privacy.net
This is an invalid return address
Please reply in the news group
Click to expand...
 
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