+ Reply to Thread
Page 1 of 2
1 2 LastLast
Results 1 to 10 of 14

Thread: Biggest plunder ever by the collision industry

  1. Biggest plunder ever by the collision industry

    What is the biggest most powerful tool used against your business today that keeps you from making the profits you deserve?

    Is it the DRP model"
    Is it the Data providers?
    Is it your lack of business knowledge?
    Is it your lack of funding?
    Is it Steering by insurers?


    What is it?

  2. Join Date
    Jan 2009
    Location
    Southaven, Mississippi
    Posts
    808

    All of the above.

  3. OK smart guy.......

    Now if you had to pick one or two or in what order.....

    Some people just like the easy way out....lol

  4. Join Date
    Jan 2009
    Location
    Albuquerque
    Posts
    126

    1. Is it the DRP model"
    2. Is it Steering by insurers?
    3. Is it the Data providers?
    4. Is it your lack of funding?
    5. Is it your lack of business knowledge?

  5. Join Date
    Jan 2009
    Location
    Ma.
    Posts
    490

    Definity, Is it your lack of business knowledge!

    If you know what you are doing, you would just bill your customers at a price that is fair and profitable and forget all other business models.

  6. Join Date
    Jan 2009
    Location
    Southaven, Mississippi
    Posts
    808

    I actually think the the misinformation provided by the so-called information providers is the single greatest detriment to our industry at this point in time. As Roy has so eloquently pointed out in the past, repair shops and insurance companies alike have accepted the information provided as being the "gospel", not just a "guide". Mark illustrates the lack of legitimacy in the information regularly and it is something we are all aware of, but where does one turn to get the information to generate an estimate and subsequent repair order that reflects a more realistic repair time? Once you do, how do you convince the enemy to give up the stranglehold they currently have on our businesses by giving up what they have worked so long and so hard to accomplish by having the information provide seriously deficient times and ambiguous information that is decidedly in their favor?
    Charging for actual time sounds good on paper, but when it comes down to application, there are a number of problems, the first of which is a realistic labor rate. When plumbers, electricians, small engine mechanics, and any number of other vocations that require considerably less in the way of responsibility, training, risk of exposure to liability, and investment in tools can command a higher labor rate than a bodyshop, that would have to be addressed first and foremost.
    Then you have the disparity in ability and overhead to deal with. If I have a guy who spends more time pulling his chin, smoking, and drinking soft drinks than he does working, does anyone owe him for that? When you have that occasional job that just mercilessly beats your ass, does anyone owe for that? How about the guy who is on top of his game and can produce twice the labor that anyone else in the shop can. His skill and ability wind up costing him because he could sit on his ass just like Mr. Chin Puller and make the same money without all the effort. Where is his motivation to excel?
    To play devil's advocate, for us to make up our own repair times would put us in the same position as the information providers, having to answer the "How the hell did you come up with that figure?" question and there would be absolutely no way to validate those times or establish a basis for comparison for the purposes of competition. The idea of leaving the charges and procedure completely left to the discretion of the reapir shop is a really bad idea because not everyone is a conscientious as most of those in our group. The outlaws among us would benefit wildly....for a while.
    Finding an effective way to come up with REALISTIC average repair times seems to me to be the solution for everyone, times that are not pulled out of the seat of someone's pants or influenced by those who pay the bills. The subjective areas like access time, time to tint colors from hell, along with others have to go. "Blending within the panel" are words that should be struck from the English language.
    Fictitious information used as the blueprint for not only the repairs, but profitability as well is definitely our greatest plunder.

  7. Join Date
    Jan 2009
    Posts
    11

    Interesting question. While all that you mention has the potential to be devastating to the bottom line, none would be nearly as effective had it not been for an overwhelming number of shops throwing their customer under the bus for the benefit of the insurer. The true "tool" here would be those that decided it better to market to the insurer, rather than the actual consumer. I'll bet that's a bell many would like to un-ring.

  8. Join Date
    Jan 2009
    Posts
    112

    I would like to answer the question, But it does not really apply to me any longer.

    What were the biggest most powerful things or tools that had an effect my bottom line and the respect I deserved while in the collision repair industry?

    I suppose the answer is the fact that many in the auto repair industry, mostly the collision repair industry lack the business knowledge required to maintain profitability. Those same, so called collision repair businesses also lack the required respect from the public that is needed to remain in business over the long term. The reasons are varied. But, now that I no longer consider myself part of the collision repair industry... I don't really care if you all eat your young or not.

    These days I am actually afraid to associate with many in the collision repair trade. I'm afraid they might see what I have been doing and attempt to apply the same principles. Collision repair "professionals" are in fact some of the dumbest stooges I have ever come across. Yes, I know it takes one to know one. But, in reality it doesn't take much education to gain the competitive edge. LOL...

    In all actuality the DRP model is working in my favor.
    Data providers are the least of my worries, garbage in... garbage out... .
    Funding is not an issue like it once was, however paying off the debt that my prior business model cost me is still a considerable wieght... things are getting easier.
    Steering is something I have come to accept and actually like watching take place. The customers who allow themselves to be steered would never be good customers matches for me and the type of work we choose now days anyway. The practice of steering only serves to turn future customers my direction.

    Advocate and others, I thank you showing me the light and pointing me in the right direction back in the day when I needed some direction. I knew the answers to my questions all along. I didn't need anyone to answer my questions only to confirm that my suspicions were right.

  9. Quote Originally Posted by Bill View Post
    I actually think the the misinformation provided by the so-called information providers is the single greatest detriment to our industry at this point in time. As Roy has so eloquently pointed out in the past, repair shops and insurance companies alike have accepted the information provided as being the "gospel", not just a "guide". Mark illustrates the lack of legitimacy in the information regularly and it is something we are all aware of, but where does one turn to get the information to generate an estimate and subsequent repair order that reflects a more realistic repair time? Once you do, how do you convince the enemy to give up the stranglehold they currently have on our businesses by giving up what they have worked so long and so hard to accomplish by having the information provide seriously deficient times and ambiguous information that is decidedly in their favor?
    Charging for actual time sounds good on paper, but when it comes down to application, there are a number of problems, the first of which is a realistic labor rate. When plumbers, electricians, small engine mechanics, and any number of other vocations that require considerably less in the way of responsibility, training, risk of exposure to liability, and investment in tools can command a higher labor rate than a bodyshop, that would have to be addressed first and foremost.
    Then you have the disparity in ability and overhead to deal with. If I have a guy who spends more time pulling his chin, smoking, and drinking soft drinks than he does working, does anyone owe him for that? When you have that occasional job that just mercilessly beats your ass, does anyone owe for that? How about the guy who is on top of his game and can produce twice the labor that anyone else in the shop can. His skill and ability wind up costing him because he could sit on his ass just like Mr. Chin Puller and make the same money without all the effort. Where is his motivation to excel?
    To play devil's advocate, for us to make up our own repair times would put us in the same position as the information providers, having to answer the "How the hell did you come up with that figure?" question and there would be absolutely no way to validate those times or establish a basis for comparison for the purposes of competition. The idea of leaving the charges and procedure completely left to the discretion of the reapir shop is a really bad idea because not everyone is a conscientious as most of those in our group. The outlaws among us would benefit wildly....for a while.
    Finding an effective way to come up with REALISTIC average repair times seems to me to be the solution for everyone, times that are not pulled out of the seat of someone's pants or influenced by those who pay the bills. The subjective areas like access time, time to tint colors from hell, along with others have to go. "Blending within the panel" are words that should be struck from the English language.
    Fictitious information used as the blueprint for not only the repairs, but profitability as well is definitely our greatest plunder.
    To play devil's advocate, for us to make up our own repair times would put us in the same position as the information providers, having to answer the "How the hell did you come up with that figure?" question and there would be absolutely no way to validate those times or establish a basis for comparison for the purposes of competition. The idea of leaving the charges and procedure completely left to the discretion of the reapir shop is a really bad idea because not everyone is a conscientious as most of those in our group. The outlaws among us would benefit wildly....for a while.

    Bill... I would think that your "experience" as an owner/technician would serve as an answer to "How the hell did you come up with that figure?" After repairing thousands of vehicles in my career, it would probably be easier to say "$X.xx for access, $X.xx for set-up and measure, $X.xx for further access, $X.xx for structural correction, etc...

  10. Join Date
    Mar 2009
    Posts
    12

    Compare to mechanical manual

    If you compare a CEG to a MEG you will see that different times are paid for the same operations.

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts