Majority of Industry Feels Current Paint and Materials Formula is Poor Methodology, Study Reveals - BodyShop Business

Majority of Industry Feels Current Paint and Materials Formula is Poor Methodology, Study Reveals

A new independent study revealed that 94 percent of collision repair industry professionals believe the current paint and material compensation system is a poor methodology.

A new independent study conducted by Richfield Associates and commissioned by ComputerLogic revealed that 94 percent of collision repair industry professionals believe the current paint and material compensation system is a poor methodology.

The professionals polled included:

• Association executives
• Dealerships
• Manufacturers
• Independent shops
• Distributors
• Estimating software providers
• Multi-location networks
• Multi-location operators
• Consultants
• Trade publication editors
• Insurance carriers

Asked to rank how important the paint and materials compensation issue is on a scale of 1 to 10, out of all the professionals polled, association executives ranked it the most important at 8.3, while insurers ranked it least important at 5.0.

Independent shops with gross annual sales of $2 million to $10 million thought it a more important issue than independent shops with less than $2 million in gross annual sales, scoring it a 7.6 (4th) compared to the less-than-$2 million shops’ score of 6.4 (10th).

The study also determined that the average dollar rate used in 2005 was $24 per refinish hour/unit and, if adjusted to keep pace with the proportional paint and material increases over the past seven years, a rate of $37 should have been extended in 2011. 


More information:

Download a copy of the study

You May Also Like

USDOT Launches Roadway Safety Call to Action

The Call to Action campaign asks stakeholders to commit to specific actions in 2023 to reduce serious injuries and deaths on our roadways, which have reached crisis levels.

U.S. Transportation Secretary Pete Buttigieg has launched the U.S. Department of Transportation's (DOT) National Roadway Safety Strategy Call to Action campaign, asking stakeholders to commit to specific actions in 2023 to reduce serious injuries and deaths on our roadways, which have reached crisis levels. The department has also shared 49 voluntary commitments to action from early adopters, including health and safety advocates, the private sector, municipal and law enforcement organizations, and more. 

SEMA Sponsors ZEV Conversion Rebate Bill in California

Senate Bill 301 would create a financial rebate program for converting gas and diesel-powered motor vehicles into zero-emissions-vehicles.

Top 5 Stories of the Week

A recap of the top five stories on bodyshopbusiness.com during the week of Jan. 30.

Consolidator Report

Consolidation news from the week of Jan. 30.

Association News

The latest association news on bodyshopbusiness.com.

Other Posts

NGK/NTK, Autel Create Diagnostic Webinar Series

NGK Spark Plugs (U.S.A.), Inc., and Autel U.S. have again joined forces to create diagnostic webinar sessions.

CARSTAR Ranked First Again in Collision by Entrepreneur

CARSTAR has been ranked number one in the collision repair category among the top franchises in Entrepreneur magazine’s 2023 Franchise 500.

Classic Collision Announces Executive Promotions

Classic Collision has announced the promotion of Alexander Brinkman and Cody Johnson to vice president of mergers and acquisitions.

CIECA Announces 2023 Board of Trustees Officers

The Collision Industry Electronic Commerce Association announced that its board of trustees has elected new officers for 2023.