Chris Collins explains how a rising warranty-to-customer-pay ratio in your Advisor Performance Report signals a capacity problem. When warranty work takes up 50% or more of appointments, customers needing non-warranty service go to independent shops instead of waiting, costing you revenue.
Let's say you go. Let's just say General Motors and you're looking at the Advisor performance report and 50% of their work is warranty most of the time. If your warranty starts to creep up, it means you don't have capacity. Customers have to come to you for the warranty. If you're booked out four weeks, you're going to lose the customer pay to Independence because they can go to an independent for customer pay. It's the warranty they have to come to the dealership for. So that warranty to customer pay ratio is an indicator of not having capacity in the shop.
