Tuesday, October 05, 2010
Dealers 'look to change' warranty suppliers
Ian Simpson, sales and marketing director at RAC Warranty, said over the past two years dealers were focussed on maximising potential profit streams and are now more receptive to switching providers.
"This is traditionally the time of year, while planning budgets for the next 12 months, that most warranty accounts come under scrutiny.
"Certainly, from the number of business enquiries that are coming our way, we estimate that around a fifth of the UK's largest dealers groups are at the very least considering changing their supplier."
Simpson added that, pre-recession, dealer groups tended to often stay with the same warranty provider for years and even decades because "making a change was seen as a painful process".
"To a large extent that view has changed. Profits from warranties, the consequential aftersales revenues and customer retention have become much more important to dealer groups.
"Ensuring that the best provider is in place to maximise profitability and customer retention is seen as essential. Certainly, we have seen a lot of movement in the market place since the recession."
DATED: 05.10.10
FEED: MT
