We all want clients to feel taken care of. But here’s the trap: too much “free” warranty work, and suddenly your labor margin is bleeding out.
The hidden problem:
Most integrators don’t track warranty hours separately. They get buried in regular labor. That’s how a few no-charge truck rolls balloon into tens of thousands of dollars of lost margin every year. (Wish we were exaggerating here…)
The fix is simple:
- Track warranty hours. Create a unique labor category in your P&L. Visibility alone will shock you.
- Set clear limits. If your workmanship warranty is one year, put it in writing. Stick to it.
- Upsell service plans. Anything beyond the standard? That’s billable. Recurring maintenance agreements (RMR) are your friend here.
- Send your client a zero-dollar invoice for any warranty work, showing the full cost of the work and a credit to zero it out. This sets an expectation for the future.
Why it matters: Warranty without limits is like running an all-you-can-eat buffet. Your labor team is the food, and clients will keep piling their plates. By drawing a line, you protect margins and train clients to see ongoing support as a paid service.
Instead of just patching leaks, build a system that protects your labor margin every day. Warranty should be a goodwill gesture—not a black hole for profit. Get control now, and you’ll free up cash and capacity for what actually grows your business.
Better warranty rules = stronger margins + happier clients (the paying kind).
Stay VITAL,
Matt & the team
