Offering
Goodwill Adjustments
Article taken from August
2003 Chrysler
Profit & Protection warranty newsletter
Should You or Shouldn't You?
Goodwill adjustments are made on a case-by-case basis. The adjustments
exist solely to assist in extraordinary circumstances where
dealership management may wish to offer special consideration
to their customers.
The decision to offer a goodwill adjustment should be based
on the customer’s expectations and what is fair to all
involved parties; Chrysler, the customer, and the dealership.
Good judgment and common sense should rule the decision to reach
a fair consensus with the customer. Your district manager (DM)
will most likely be supportive of your goodwill decision. In
the event of an unusual circumstance it may be a good idea to
contact your DM prior to giving the customer an answer.
No two cases are exactly the same, and there is rarely a right
or wrong answer, only one that is appropriate at that time to
handle the customer effectively. Contact your DM and obtain
some boundaries that you may work with to be better prepared
to handle situations as they arise. The goal is to provide meaningful
goodwill to those customers that merit assistance.
Factors to assist in making a goodwill determination include:
- Is this a repeat visit for the concern?
- Has this customer experienced a history of problems with the vehicle, even if those concerns are unrelated to the situation at hand?
- Is there a TSB that addresses the issue?
- Did the owner’s actions influence the problem, either negatively or positively?
- Are there any extenuating circumstances beyond the owner’s control?
- Has anyone else worked on the vehicle prior to it coming to your dealership?
- Is the concern a safety related issue?
- Does the customer have a Chrysler Service Contract?
- Is there an outside service contract?
- When did the warranty expire, recently or some time ago?
- Is the vehicle a theft recovery or has it ever been wrecked?
- How many owners?
- Is the customer product loyal?
- Is the customer familiar with Chrysler products, operation and performance?
- What would your competition do?
When dealer management finds goodwill assistance to be appropriate,
dealerships that are empowered with Dealer Self Authorization
are encouraged to make goodwill adjustments at the point of
service. Non-five star dealers may authorize up to $600 ($1,500
for powertrain repairs) and five star dealers may not exceed
$1,000 ($2,500 for powertrain repairs).
It is recommended to consider goodwill adjustments early in
the repair. The adjustment will have the greatest impact on
the customer when offered during the repair process.
Do not use goodwill adjustments for the following reasons:
- Used vehicle reconditioning
- Required repairs due to damage or abuse
- Service contract covered repairs
- Repairs resulting from poor diagnosis
- Unnecessary parts replacements
- Poor workmanship resulting in shop comebacks
When determining if a situation is befitting of a goodwill adjustment keep in mind that it does not matter who authorizes the repair. DM authorization or approval will not keep the repair off of the POPPS report if the dealer is out of line. It may be in the dealership’s best interest at that point to contact the DM to determine the best solution.
When offering goodwill keep in mind:
- Goodwill repairs are made at warranty rates.
- Always give the customer a copy of the repair order.
- Consider whether or not the customer should participate in some manner.
An effective goodwill decision is made only after reviewing
all of the facts and circumstances associated with the proposed
repair. The goal of a goodwill adjustment is a satisfied, loyal
customer, therefore they should be a part of the decision making
process to make sure the assistance is in everyone’s best
interest.
© J&L Warranty Pros™
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