Warranty and comeback work is part of running a shop. The problem is that most books hide it. A comeback closes as a $0 repair order, the parts disappear into parts cost, the tech’s time disappears into payroll, and nobody can say what redoing work actually costs the shop.
Three kinds of warranty work
“Warranty” covers three different situations, and each one affects the books differently.
- Your comeback. The shop redoes its own work at no charge. No sale, all cost.
- Parts warranty from a supplier. A part failed, and the vendor owes you something back for it.
- Paid warranty work. A manufacturer, extended warranty company or warranty plan pays you for the repair. That’s a sale, just to a different customer.
When all three get treated the same way, the numbers that matter disappear.
Where comebacks hide
In most shop books we open, a comeback leaves no trace of its own. The parts blend into regular parts cost. The tech time blends into payroll. The bay time is just gone.
The P&L shows margins that are a little lower than they should be, and nobody can say why. You can’t tell whether comebacks are a small cost of doing business or a real leak.
Money shops leave on the table
Warranty work doesn’t just cost money. It’s also one of the places shops quietly lose money they’re owed. The paperwork runs between suppliers, warranty companies and customers, each on its own timeline, and things fall through the cracks. In almost every set of shop books we review, some of that money never made it back.
What it really costs
Comebacks cost you twice: the parts and tech time, plus the bay that could have been earning on a paying job. And as long as that cost stays invisible, nobody in the shop is accountable for it.
The short version
- Comebacks, parts warranty and paid warranty work each affect your books differently.
- In most shops, the cost of comebacks is buried where nobody can see it.
- Warranty paperwork is one of the places shops lose money they’re owed.
- You can’t manage what your books don’t show.
If you’re not sure where your comebacks are hiding, reach out through our contact form. The first conversation is free.