You can ensure that all labor reimbursements are paid up and that all your products are being charged accurately with a couple of simple automations.
There are two reasons why AASPs need to look through the repairs they’ve completed every month. One, you need to ensure that what you’re charging for parts is not lower than what you have to pay Apple. Two, you need to ensure that you’re being reimbursed for labor on all warranty and covered repairs.
Of course, even Apple could make occasional errors when dealing with thousands of repair providers and hundreds of thousands of repairs every month.
AASPs have a set time period within which any inaccuracies have to be corrected. For many Apple service providers, this means manually comparing what’s logged in the repair management system against the data in Apple’s records — usually hours or even a couple of days of work.
Even then it’s easy to overlook errors and lose money.
Fixably makes it easy to complete this check through automation, faster and without errors. Our customers save many days a month by automating these checks, reducing time spent to a few minutes.
As an AASP, you get access to parts manufactured by Apple. You pay Apple, and then resell that part to customers when completing a repair.
But how much do you charge for a specific part? That depends on how much you’re paying for it, and it’s not always easy to know if you’re getting your desired margin or at least not selling it for lower than you bought it.
Apple doesn’t announce price changes actively. Plus, there’s a small possibility that Apple just charged you more than what the part was priced at the time of sale. For instance, Apple might have given you the opportunity to offer a discount but then charged a different price.
So, most AASPs would download the list of invoices from Apple GSX (Global Service Exchange) and compare with in-house accounting records.
Fixably’s One-Step Solution
Fixably creates invoices for every repair, and that includes every part sold. Our GSX integration also enables you to fetch invoices from GSX for products covered under warranty repair.
So we’ve combined these two to create a report that has all the necessary information. Most important, we highlight any mismatches in what the part is costing you versus what you’re earning from it.
In addition, if you use an accounting integration within Fixably, you can push this data to the system. If not, you can use a CSV export to update your accounting books.
You can also ensure that you always maintain a set margin as well. Our OEM margin feature ensures you can always apply a percentage on top of what Apple has priced at part.
Part of the profit AASPs make is through labor reimbursements for warranty repairs. The earnings from labor reimbursement have changed recently, starting in April 2023.
A bonus, known as the Service Excellence Multiplier, used to be added so that AASPs could earn a higher margin on warranty repairs. However, this multiplier is no longer applied even though the Service Excellence Score is still relevant for other purposes.
Apple reimburses service providers every month. For European AASPs, Apple sends a ‘Bill & Bill Purchase Order’ via an email that lists all repairs completed during that time. In North America and Australia, AASPs can get this information directly from GSX.
The email would have information on each service, including repair number, a confirmation number, the product serial number, date, type of repair, and the labor tier of the repair.
The labor tier is what determines the reimbursement for each type of repair. This is based on the device type, type of repair, and the complexity of the repair. So a "same unit repair" (replacing a part) and a "whole unit repair" (replace the device itself) have different labor tiers.
While AASPs have 45 days to submit an invoice for labor reimbursement, any questions about the compensation has to be submitted to Apple within five days of receiving the email.
The average AASP does hundreds of repairs a month and to manually check each one is tedious and time-consuming. Most would need to download a list of warranty repairs and manually calculate how much they’re owed. And then match this with the information in Apple’s email.
Fixably’s One-Step Solution
If you’re in Europe, all you have to do is copy and paste the email you get from Apple into Fixably. The software then creates a report to automatically check if records match Apple’s invoices.
If there is a mismatch, you can use that report to immediately identify the service order. The whole process takes a few minutes and you have a report on the repairs that don’t match.
US and Australian customers have the option of fetching the invoices via our GSX integration. Fixably then creates a similar report that can be used to identify mismatches in what Apple owes you.
Automation is key to running a profitable repair business. And we enable similar automations across the repair workflow, especially through our Apple GSX integration. Each task is handled as quickly and as efficiently as possible.
Would you like to see more of Fixably’s repair management software? Book a demo to learn more.