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?
The Insurer Made Me Do It?
Historically, our industry’s associations have been about as highly regarded as government employees — and thought to work just as hard. But during the past few years, some associations — especially on the state level — have become much more active, vocal and unified, making it possible for them to actually accomplish something. But with
A Few Good Techs
Is there really a technician shortage or just a misappropriation of qualified techs? Is the pool of technicians shrinking faster than the collision repair market?
Will the end result be higher door rates?
“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.
Repairers Take Action
“Ditching this disingenuous ad is a victory for consumers — and a better business practice for GEICO. This incident should send a message that higher standards in insurance industry dealings are appropriate and necessary.” — Connecticut State Attorney General Richard Blumenthal, after GEICO complied with his request to pull a TV ad that features actress
Examining the State of the Industry
Too many shops, not enough work, not enough profit, too much insurer involvement and not enough business expertise on the part of shop owners are all contributing to the sorry state that is the collision repair industry.
“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.
A Different View of NACE
A year ago as I prepared for my first NACE show as an overwhelmed publisher of a magazine that reaches just about every collision repair shop across America, I wrote a column about leadership (or lack thereof) in our industry. Now, as I prepare for my second NACE next month in Las Vegas and reflect
Is State Farm’s New DRP Good or Bad for the Industry Long Term?
Point CounterPoint
The Process of Efficiency
Our industry has focused on gross profit issues for far too long. The key to success lies in the way we work, not in what someone else is doing to us. It’s time we shift our focus to ‘fixed’ costs — repairing more cars with the same ‘fixed’ cost or repairing the same amount of cars with a lower ‘fixed’ cost.
