Postby eieio » Thu Aug 23, 2012 8:38 pm
Warranty time is the labor time established by the manufacturer to pay a
dealership for repairing their manufacturing defects.
This labor time is not established with the intention for the dealer to make a profit on the warranty repair.
It is considered to be more like a reimbursement for the dealers' expense of doing the repair on their behalf.
To establish a "retail" labor amount to charge a customer for a non-warranty repair, a dealership will typically inflate the warranty flat-rate labor time by some factor.
If they didn't, they would be losing money big-time on customer-pay repairs.
Generally, they will "adjust" the warranty flat rate time by multiplying it by a factor of 1.6 to 1.8 (sometimes more, sometimes less).
This would result in charging a retail customer for somewhere in the neighborhood of 7.8 hours for a job that would pay 4.6 hours on a warranty basis.
On that basis, 13 hours is out & out gouging!
They obviously don't have the skill on hand to do this work efficiently, and as a result, have quoted a price high enough that the job will either "go away", or the customer will have paid so much for the repair that they will make money anyway.