Picture this scenario: You buy a fleet of vehicles to run your food delivery business and then six months later, one of them breaks down.
You take the broken-down vehicle to the repair shop and they tell you that whoever replaced your fuel pump did it wrong, and you’ll need to have it redone. Your cost just doubled. Instead of paying for one repair, now you’re paying for two repairs.
If you had a warranty that covered the work done by the first mechanic, based on the lowest average cost of the repair, you would have saved at least $400, but probably more. However, you would have only saved this kind of money if you remembered you had a warranty.
It’s so easy to forget about warranties, but if you don’t know what’s covered, you won’t pursue opportunities that can save you money. This is why Heyl Truck Lines tracks their warranties. In doing so, they were able to increase their warranty reimbursements by 990% and significantly increase their ROI.
How Much Money Can You Save By Pursuing Warranties?
The total amount of money you can expect to save by pursuing warranties will differ greatly based on your industry and niche, but here’s an example. Say you own a fleet of 10 identical model vehicles. One day, you receive a letter in the mail about a mistake made by the manufacturer and if your car is still under warranty, the dealership will fix the problem for free. The repair would normally cost $300.
With ten vehicles, that’s a potential savings of $3,000, which is a huge money-saving opportunity. You only have three options here: Ignore the opportunity completely, pursue the dealership’s offer, or fix it yourself and skip the dealership.
The only option that makes financial sense is to pursue the dealership’s offer and save $3,000.
Now consider other warranties you’ll be tracking, like tire warranties and repair warranties. Hopefully, it never happens to you, but it’s not unheard of for tires to pop or start leaking while under warranty.
If this happens, you’ll save money by not having to buy new tires. The best part is, most businesses that sell tires also include complimentary tire rotation services in their warranties. A typical tire rotation only costs about $50, but with ten vehicles, that’s $500 every six months and $1,000 every year.
Home warranties save homeowners a lot of money as well. If you have a home warranty, you can expect to save money on service calls, repairs, and replacements, and you might even get insider deals on appliances and parts.
When you add up the cost of the monthly warranty over several years, you will get a figure of a few thousand dollars. However, by pursuing just a few warrantable opportunities, you’ll save far more than what you pay for the warranty.
Every single opportunity you have to pursue a reimbursement claim is worth pursuing because every dollar will add up over time. Even if you only save a few hundred dollars here and there, you’ll eventually end up saving thousands over time.
Consider The Price Of Convenience
If the money-saving opportunities aren’t enough, consider what convenience is worth to you. For instance, you could certainly pass on a $200 warranty reimbursement opportunity because it’s easier to fix the problem yourself, but do you really want to do the work?
In this case, consider what convenience is worth to you. Do you have time to spend half a day troubleshooting the issue? Or do you have more important things to do with your time that relate to running your business?
All Warranty Reimbursements Are Worth Pursuing
You might still be wondering if you can get away with ignoring small warranty opportunities. Are the small opportunities worth the time to pursue? Definitely. By pursuing smaller warrantable opportunities, you’re not only saving money that will add up to a meaningful amount over time, but you’re also respecting yourself enough to stay focused on the areas of your business that deserve your attention.
It may not be a direct financial impact, but when you pursue your warranty reimbursements, you positively impact your business’ finances by not wasting your time doing things that are easier left to the manufacturer. Your employees also don’t need to take time out of their day to help troubleshoot or resolve the problem. Pursuing warranties really is a win-win for everyone.
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