In these tight economic times claims and complaint systems and policies don’t operate as they did when business was booming. It might have been easier to file a claim and get it resolved, sometimes without much effort, before business slowed so much. Things have changed. Word on the street is that some manufacturers are not commissioning inspections for claims but instead are just turning the claims down. This probably doesn’t come as much of a surprise to many of you. It’s become harder to get claims resolved because this is an area of loss for manufacturers already burdened with loss of revenue from the business slow down. Claims are one area where a manufacturer can stave off further losses by making it more difficult for a dealer to fight over a complaint with them. And fight is what you may have to do to get a claim resolved. It might be that the rep will look at the complaint but most reps don’t understand manufacturing defects, normal or abnormal performance characteristics or other issues that may or may not be inherent to the product. So the first line of defense is to say the complaint is not a manufacturing defect and not the manufacturers’ problem. Not only does this save the manufacturer from taking the complaint further but it also saves them the money of having an independent inspection performed.
This brings us to the next issue. The manufacturers want to limit what they pay for an inspection as this is usually $150.00 max, including the expenses. You don’t get much for that kind of money as the inspector has a business to run and a family to feed just like everyone else. He’s not going to put a lot of detail into a report for this kind of money and he shouldn’t be expected to. For this kind of money all he has to do is state the basics. Either the condition he has been commissioned to look at is a manufacturing defect or not. And all he has to say is what it is or isn’t and why. For example a line he’s looking at that goes across the entire width of the carpet would be a stop mark. This is caused by the stopping and starting of the tufting machine elongating the stitch. A stop mark is reason to replace the carpet as it is a legitimate manufacturing defect.
If the complaint is for matting and crushing the inspector may just say that it is normal performance characteristic of the type of carpet he’s looking at and that the carpet is performing up to the standards and characteristics to which it was designed and constructed. Now you, as the dealer who sold the product and entrusted to deliver up to your customers expectations, have to come up with an explanation as to why you didn’t do that. This is likely not what you want to hear nor will it be what your customer wants to hear. You can always commission your own inspection and ask for great detail and even tests if the inspector deems it necessary but this won’t be a $150.00 inspection. If the carpet is found to be a problem or it does not maintain its appearance on a rating scale then you have a fighting chance to get it replaced and have the mill pay for the inspection.
Claims are creating a more adversarial relationship between manufacturers and dealers than ever before. You guys do business together but you often don’t like each other much. The relationship isn’t going to get better any time soon. What you both need to do is sit down and figure out how you’re going to start getting along better and one of those ways will be working out a claims policy you can both live with that’s fair to everyone.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts