1 min read

Unlock Hidden Revenue: Optimizing Warranty Labor Rates and Parts Markup

Bill Springer | October 6, 2026

Episode 03 — Featuring Guest Evan Kilchenstein

Imagine uncovering a hidden revenue stream within your dealership's service department that could add thousands to your bottom line every month—without increasing your workload. In this episode, Evan Kilchenstein, Major Accounts Specialist at Armatus Dealer Uplift, reveals how optimizing warranty reimbursement can do just that, transforming your parts and service profits overnight.

We explore how dealerships can significantly increase their profits by ensuring their warranty labor rates and parts markups are on par with retail levels. Evan details the history and evolution of legislation that allows dealerships to request higher rates from manufacturers, and how technology has helped streamline these processes. We also discuss the importance of regularly reviewing and adjusting these rates to prevent leaving money on the table.

Takeaways from this episode:

How AI and proprietary software allow for faster, more accurate submissions
Challenges dealerships face when going through the warranty reimbursement process
The significant financial benefit that can be achieved by leveraging effective warranty reimbursement strategies
Common mistakes dealerships make when trying to handle this process independently