Pricing Best Practices: Extended Warranty Work

Auto repair costs are currently increasing – and outpacing inflation – and while that is positive for many shops, it’s a concern for these partners. In order to win business, maintain a strong profit margin, and build lifelong relationships with new consumers from them, we recommend the following:

Use a value-based brand of aftermarket parts where/when possible. These are generally going to be more cost-effective than premium or OEM parts. If this requires you to lower your warranty length, that is okay for these referrals, provided you still offer at least a 12/12 warranty.*

*In some circumstances, the administrator may ask you to use a specific parts vendor for a used or a remanufactured part. When doing so, you need only provide the part/component warranty length to the consumer for the job at hand.

We also offer a program to help you get discounts when you have to use OEM parts. Learn more about RepairLink by OE Connect here!

The labor rate you charge for the job should be based on skill level and vehicle type. Charging higher than necessary rates on these jobs will create costly delays and may result in a denial of claim payment.

Do not upsell/ charge overages to the consumers, and make sure they have a great overall experience. These types of referrals are only appropriate for shops whose business models allow them to make a profit on the parts and labor covered by the plan administrator.

None of these plans cover shop supply fees, and these should not be charged on these jobs. You should charge for parts, labor, and taxes (where applicable/where covered) only.

Additional guidelines are available here!

Remember: All RepairPal partnerships are optional, and we want these referrals to work for you, as well as the partners who are sending them to you.

If you’d like to discuss this with us, please reach out to our Shop Success Team at shopsuccess@repairpal.com or (800)969-9204 ext 1.