The collision repair climate has changed a lot over the past 20 years. A look at your
numbers can reveal a new strategy for making money in this new environment.
Pre-repair management isn’t a new way to repair cars faster, better, cheaper and easier. But it’s been proven to ease the production management workload – and give you time
to focus on big ideas.
At first, this shop owner thought his problem was paint, but after working with his jobber and accountant, he realized it was actually a sales problem. Now he’s making good money on paint and focusing on improving other areas of his business as well.
Too many shops post their entire jobber bill to materials – even though much
of it isn’t paint. Shops then sell these items as miscellaneous parts, with the sale going to parts and the cost to paint. To make matters worse, shops are working off adjuster estimates – which can easily cost them hundreds of dollars per RO.
Many shop owners think their problems would be solved if they could just get their paint cheaper. But paint materials profitability problems are often just a symptom of larger troubles – paint labor profitability issues, lack of standard operating procedures, sales shortcomings, etc.
State Farm’s recent announcement that they’re testing a new direct-repair program and that they’ll be reducing the number of shops that participate has left repairers scratching their heads and pondering the same question: Is there life after Service First?
“My way or the highway” negotiation techniques have intimidated the repair industry long enough. Learn how to counter them.