Negotiations: Educate, NOT Alienate - BodyShop Business

Negotiations: Educate, NOT Alienate

Quite often, estimators ask me how they should approach insurers to get paid for what they do. I’ve found that by asking these estimators the following four questions, we end up having a much more productive dialogue toward finding a positive path to proper reimbursement:

1. Is it required to put the vehicle back to pre-accident condition?
2. Is it included in any other labor time?
3. Is there a predetermined time in the estimating database?
4. What is it worth?

Question No. 1

My intention in negotiating to get paid for what I do is to “Educate NOT Alienate,” so how do we determine if it’s required to put the vehicle back to preaccident condition? We can use the following resources:

• OEM recommendations
• I-CAR recommendations
• Paint manufacturers’ bulletins
• OEM information provider
• Other sources

We need to understand that while we may not like or agree with it, it’s our job as estimators to present the burden of proof to show that it’s required to put the vehicle back to pre-accident condition if we want to get paid for something. Consider making a PowerPoint presentation, and have all of your “justification documentation” prepared in advance.

Question No. 2

To determine if it’s included in any other labor operation, we need to:

• Review the appropriate Estimating Systems Not Included Section (i.e. P-pages)
• Use the ASA not included charts
• Submit an inquiry to www.degweb.org

Question No. 3

To find out if there’s a predetermined time in the database system:

• Look in your estimating system and, if in doubt, just “click it.” If it’s included, allow the system to show you. If it’s included and you have some doubts that it should not be, submit an inquiry at www.degweb.org.

Question No. 4

What is it worth? This is where you really have to be prepared:

• Conduct your own time study (you can download some for free from my website, www.collisionadvice.com, under “forms.”

• Take a video of the procedure or photos to make a presentation on what’s required.

Example

Let’s say you receive a brand new Toyota bumper cover that has to be refinished. Toyota bumper covers come in a raw plastic state and require additional prep work to get to the refinish state. So is it required to prep a new OEM Toyota bumper cover for refinish? Yes, it is. So how could we show this?

• You could obtain the Toyota CRIB bulletin that shows this is necessary. We have now removed any individual opinions and have now shown this is necessary. It’s not your opinion now – it is now fact.

• You could visit www.degweb.org and download a list of OEM raw bumper covers to justify.

• You could visit www.asashop.org and download the refinish flier for raw bumper covers.

• You could get a bulletin from your paint manufacturer highlighting the necessary steps.

Is it included in any other labor operations, such as refinishing the bumper cover? To determine this:

• You could review the individual not included pages for that specific estimating system.

• You could submit an inquiry at www.degweb.org and receive a response that will state it is not included.

• You could use the ASA not-included chart that will show it’s a not included operation.

Is there a predetermined time in the estimating system?

• One information provider recently came out with a labor time for this additional preparation required – providing the answer to how much you should be allotted for this not- included operation.

• Another information provider has had a formula for some time that can be applied to this procedure – which would provide the answer to how much you should be allowed for this operation of additional prep for a raw bumper cover.

Let’s for the sake of argument assume there was no time in any of the databases, and you come to question no. 4: What is it worth? Remember the minimum amount of time that can be allocated is .1. This is where you may have to negotiate the time that’s required. How would you determine this?

• Perform a time study.

• Check with your paint manufacturer.

While we may not agree or even like the fact that we have to prove that we should be reimbursed, if you follow the above questions, it will lead you towards a path of positive reward.

If you have a specific estimating question that you would like me to address, e-mail [email protected].


Mike Anderson is the former owner of Wagonwork Collision Centers in Alexandria, Va., and current owner of CollisionAdvice.com, a full-service collision consulting company. He can be reached at [email protected] or (301) 535-3333.

You May Also Like

The Digital Blitz

We talk so much about how much collision repair is changing, but so is the world of media!

We talk so much in the pages of BodyShop Business about how rapidly the collision repair industry is changing, but the world of BodyShop Business is changing drastically too — the world of media, that is. Change is everywhere! Is there anything that is not changing? Change, as they say, is inevitable. I liken it to a freight train that will steamroll you unless you get on board.

Auto Body Shops: Building a Foundation for the New Year

For the new year, it’s important to conduct a thorough audit of your finances to look for areas of opportunity and things to change.

Auto Body Consolidation Update: There’s a New Buyer in Town

The good news for shops that want to sell but do not fit a consolidator’s
profile is that there is a fresh pool of new buyers.

Is Your Auto Body Shop a Hobby … or a Business?

So you want to provide safe and properly repair vehicles to your customers … even at a financial loss?

BodyShop Business 2023 Executives of the Year

Greg Solesbee was named the Single-Shop Executive of the Year, and Charlie Drake was named the Multi-Shop Executive of the Year.

Other Posts

This Could Be Your Last Text

A sign I saw on the highway that said “This Could Be Your Last Text” reminded me of my son’s recent car wreck.

SUNY Morrisville Auto Body Program Makes Students, Cars Shine 

A 1997 Mustang Cobra is getting the chance to shine again, thanks to students in Alexander Graf’s auto body technology classes.

3 Strategies to Improve Your Insurance Protection

If you’re looking to improve your shop operations and set yourself up for success in 2024, remember these three insurance strategies.

A Scary Moment Reminds Us of the Importance of Proper Collision Repairs

My son’s car wreck reminded me that we literally hold people’s lives in our hands in the collision repair business.