Short YouTube clip (Chris Collins) giving practical advice on pricing and effective labor rates in warranty work. Collins argues that customers ultimately pay for warranty-related costs and that shops set their own effective labor rate (ELR) based on demand; manufacturers may lag but will adjust. He says setting the right ELR attracts technicians, the math can be complicated, but it is manageable and he supports using ELR when appropriate.
The thing that I would say is the customers pay for that, and you set where your ER is. So it's relative. If there's demand, you set the pricing. Even the manufacturer eventually has to catch up with customer pay. So there might be a delay, but you control your elr. So really, at the end of the day, it's an. It's an easy thing to overcome. That's the thing that gets you technicians. It's easy. You just have to figure out your. Your what your effective labor needs to be, and that's it. So I'm for it. It's not my. It's not my original go to. I would try to stay away from having to do a lot of that stuff just because it's complicated. It gets complicated, the math. But you can do it.
