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Dealers win or lose on performing recall work?

2K views 16 replies 11 participants last post by  Scrambler ACE 
#1 ·
Do dealers make money or lose money when performing recall work? Thanks to this forum and no thanks to Triumph North America, I learned the following:

THRUXTON 1200R
You have outstanding recalls:
RECALL RM2016 018 SB541

I have the choice of two dealers to perform the work - both about 90 miles away. One where I bought the bike and the other dealer who I prefer. Not wanting to hurt the ones we love... Who gets the call?
 
#2 ·
You didn't support your preferred dealer with the bike purchase, but on the other hand it's probably better to support your preferred dealer in the long run to keep them profitable . If one was closer I'd say there is an advantage for you to give them business, but if you don't trust them to do a good repair I wouldn't give them your business .
 
#4 ·
You didn't support your preferred dealer with the bike purchase...
I wasn't aware of the dealer I prefer at the time of purchase, if I had been - they would have been the one I bought the bike from.
 
#3 ·
Dealers get reimbursed for warranty and recall work. In most cases it is at a pre-determined rate that is lower than the retail rate. In other words, dealers typically make less on warranty work than on regular work.

While dealers are required to perform warranty and recall work as part of their franchise agreement, they often see it as a necessary evil. As a result, it is good to establish a relationship with a servicing dealer, whether the vehicle was purchased there or not.
 
#5 ·
When I worked at a Triumph dealer, they looooved the recalls... The get to charge for everything: full allotted of time the job calls for, every little piece they have in stock that they can use to replace-rather than reuse an existing part, etc... And they don't have to worry about confronting the customer with a bill that is "on the high side" of the scale, because it's of no concern to the customer's pocket... Instead, Triumph North America will pay that service bill in full... Customer & dealer win... So go to the dealer you like better. (But more importantly, the one you think will do the actual better job on the recall, obviously.)... I don't know if anything changed from 9 years ago, but I doubt it.
 
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#11 ·
I spent nearly 10 years working for a BMW auto dealership and would estimate at least 75% of the work our service techs did was warranty repairs. Heck, that number might actually be higher since even oil services and brakes were covered at the time. If a vehicle was close to the end of it's warranty we would inspect them for any repairs we could make that the warranty would pay for. I made a pretty good living off warranty and recall work.
 
#12 ·
I wouldn't be concerned about the dealer's agreement with the manufacturer. I go to the shop I like.

I bought my last 2 Triumphs from a dealer 150 miles away. I got good prices on leftovers. After some service work at the selling dealer, I took them to a dealer about 60 miles away for service until they dropped the Triumph line. I then tried a new dealer about 50 miles away. I now go to the closest dealer because they treat me right.
 
#13 ·
Spoke with my dealer yesterday to schedule the fuel sub harness recall. Triumph is allotting dealer 3.4 hrs to do the job. Dealer said it would take them .5 hrs on a Thruxton but since mine has the fairing it would be 1 hr. So even if they get a reduced labor rate they still make out. Btw, my local dealers labor rate is $135 hr! Ouch.
 
#17 ·
I have taken my Scrambler to Cascade Moto since I bought it. Not the cheapest outfit, but they do great work, and pride themselves on the quality.

Latus is also nearby, and I love the look of their shop and custom builds they do...but have not heard many reviews of the actual work...

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