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The True Cost Of Comebacks

Comebacks are a hot topic today. You need to track all comebacks, determine the reason (tech error, part error, training issue, other) and then calculate the true cost of the comeback.

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By Joe Marconi of Elite

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Comebacks are a hot topic today. You need to track
all comebacks, determine the reason (tech error, part error, training issue,
other) and then calculate the true cost of the comeback.

Here are a few things to consider:
• The loss of time when performing the comeback; time that the tech can use to
perform other work and generate profit;
• The misc costs, such as overhead costs, supplies, cleaners, etc.;
• Towing costs, rental, etc.;
• Cost to morale;
• Reputation damage; and
• Reduction to your profit margin.

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For every part issue, you need to
inform your supplier. Sit down with suppliers on a regular basis. Don’t return defective
parts until you have listed the parts, and maintain a report. Document
everything.

Part issues are increasing. Every shop
owner I speak to is frustrated over this.

Remember, comebacks kill your bottom
line. The more comebacks you have, the more they’re killing your profits.

This article was contributed by Joe Marconi.
Joe is one of the 1-on-1 business coaches who helps shop owners through
the 
Elite Coaching Program, and is the
co-founder of 
autoshopowner.com.

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