I understand and agree people need to be paid for the time. But when a customer shows up with a car that is under the original factory warranty, or a factory extended bumper to bumper warranty, and the service advisor starts by saying you have to pay a diagnostic fee of $200 to find out if the repair is covered, it causes the customer unease because it is not only the money but the question of whether I am dealing with someone reputable. After all I signed a contract where the manufacturer agrees to cover everything but wear items and cosmetics pretty much.
The better way to handle the issue is to explain to the customer that the customer doesn’t pay the fee if the repair is covered. I have had the experience, both with Toyota and Ram dealers, Iwhen they act as if the warranty doesn’t exist and then they call you like you won the lottery to tell you that the contract you signed actually means what it says. Honda and BMW dealers, in my experience, have handled this issue with greater skill. The underlying economics are I am sure the same. But one approach makes me feel like I am dealing with shysters and the other approach confirms that I am dealing with people who are reputable.
But to your point I don’t disagree that people should be paid for their time, but it is a customer relationship management issue. ( It is also one of the experiences that makes me less confident about monkeying around with service manual recommendations - if they act this way when something is clearly covered, I sometimes have the feeling I will have an argument on my hands for any sort of divergence from the manual, irrespective of the merit, if that makes sense.)
Well let me be the Devil's Advocate here, t he warranty doesn't cover any & all breakdowns, which is what MOST people think, but only those that are caused by a "Manufacturing Deficiency" so IF the malfunction is caused by anything else one's SOL!
Naturally many dealers try to claim it's owner's abuse, charge you and then also claim it under warranty if it qualifies.