Shifty Business: Cost Shifting
Not getting paid properly? Cost shifting is not the solution, and is just plain bad busiess.
Think Tortoise, Not Hare
Many who attempt to implement ‘lean’ become frustrated when, initially, the business seems more chaotic than before. The key is to create operational stability and organizational discipline – and to be patient.
Busy But Broke
Repairing cars is only a part of what we do. Ultimately, we run a collision repair buisness – which means we need to make a profit on the cars wedo fix.
Are You Throwing Away Money?
Every day, shops across the country donate their labor and product free of charge. Are you one of them? If you’re relying on a computer and the P-pages to do all your thinking for you, you’re losing revenue – and lots of it.
Pricing Paint and Materials
The ‘dollars times hours’ formula no longer makes sense. But if insurers can get shops to continue to accept this old formula, why should they voluntarily change what they pay?
Understanding Airbags
Many shop personnel say ‘it’s not my job’ to know the basics about how and why airbags work. I disagree. Not only do we owe it to our customers, but we can use this knowledge to differentiate ourselves from the competition and get the job.
“I Can’t Make Money On Paint!” (a.k.a Why Johnny Kicked The Dog)
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.
“I Can’t Make Money on Paint!” (a.k.a. Why Johnny Kicked the Dog.)
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.
It Takes a Body Shop
This shop owner discovered that part of being successful inside his shop means being active outside of it.
Parts Pricing: Your Business, Your Call
Parts prices listed in estimating systems are the manufacturer’s suggested retail prices. Despite what insurers would like you to believe, you can price parts based on the gross profits you desire.