What’s the True Cost of Comebacks?
Comebacks are a hot topic today, particularly with the frustration over poor-quality parts. 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.
– Damage to morale
– Reputation damage
– Reduction to your profit margin
For every part issue, you need to inform your supplier, whether it’s NAPA, CARQUEST, Advance Auto, O’Reilly’s, or any other. 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 tip was contributed by Joe Marconi. Joe is the one of the top shop owners in the country, and a business coach that helps other shop owners reach their goals through the Elite Coaching Program.