• Have retail labor rates increased substantially? • Were previous submissions fully optimized? • Have state law changes created new opportunities? Unlike many operational improvements that require months to produce results, reimbursement optimization can generate higher warranty revenue shortly after approval. Timing matters. Every month a dealership operates under outdated reimbursement rates, it loses revenue that can never be recovered. According to Armatus, dealerships lose an average of $8,000 to $12,000 in gross profit every month when reimbursement improvements are delayed. Improved reimbursement also strengthens fixed operations by supporting technician compensation, training, equipment investments and service absorption. As manufacturers introduce increasingly sophisticated vehicles requiring advanced diagnostics and specialized repairs, recovering appropriate reimbursement becomes even more important to maintaining a profitable service department. Because warranty reimbursement laws, submission requirements, and OEM procedures vary by state and manufacturer, many dealership groups rely on specialists. A company like Armatus can quickly evaluate reimbursement performance after an acquisition, identify unrealized revenue opportunities, and manage the submission process through proven technology and proprietary methodologies. The purchase agreement is only the beginning of value creation. A retail warranty reimbursement review should become a standard post-acquisition best practice, helping new owners uncover hidden revenue, strengthen fixed operations and maximize the return on every dealership acquisition. This article has been edited for length. You can read the full, unabridged version by scanning the QR code. https://www.dealeruplift.com/ the-first-60-days-why-everydealership-acquisition-shouldbegin-with-a-retail-warrantyreimbursement-review/ Jordan Jankowski is the Chief Operating Officer at Armatus Dealer Uplift. He has played a key role in consulting on 25 warranty reimbursement laws nationwide and is widely regarded as a subject-matter expert in this highly technical arena. Jordan manages a team of over 70 people who produce thousands of retail warranty reimbursement submissions each year. RS18001-CarDealerAd-jy04-final3-outlines.indd 1 12/11/18 1:28 PM 24 California New Car Dealer Quarterly
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