EPISODE 03

Unlock Hidden Revenue: Optimizing Warranty Labor Rates and Parts Markup

Featuring Guest Evan Kilchenstein

Episode Description

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

BILL SPRINGER

Host of Retention Roadmap
and president of Krex Inc.

Evan Kilchenstein

Major Accounts Specialist at Armatus Dealer Uplift

Would you like to Be a guest on our podcast?

The Retention Formula: Insights from Tully Williams

The Retention Formula: Insights from Tully Williams

Customer retention in the dealership service department is about more than just numbers—it’s about treating every customer as if they’re family and earning their repeat and referral business. In this episode, Tully Williams, Fixed Operations Director at the Niello Company, emphasizes the importance of measuring retention consistently and realistically, sharing his unique insights on why customer-focused recommendations and competitive pricing strategies (especially with tires, brakes, batteries, and maintenance) directly impact dealership loyalty and profitability.

read more
Service Retention in 2025: What’s Changing & How to Adapt

Service Retention in 2025: What’s Changing & How to Adapt

The service retention landscape is shifting, and dealerships must adapt to stay ahead. With fewer new cars being sold in recent years, the traditional flow of service customers is slowing, making it more important than ever to win back lost customers and capture more aftermarket business.

read more

Join our newsletter to stay
up to date with new episodes