Survey Says Most Small Shops Undercharge for Work - BodyShop Business

Survey Says Most Small Shops Undercharge for Work

In a recent survey of small- to mid-size collision repair shops, results showed most shops don’t charge all of the industry-accepted fees for their work. The survey was conducted by Web-Est, LLC, a provider of collision repair estimating software, from Dec. 4 to Dec. 11.

Results from the survey showed that the majority of small- to mid-size body shops were not consistently charging for acceptable labor-related tasks as a direct result of not having their collision estimating software fully configured. The most common error was in not having their estimating software’s “Pre-Set” charges turned on and/or set up properly. Pre-set fees are various, associated repair charges and can include items such as hazardous waste removal, car covering for over-spray and flex additives. Many other common labor charges and other common tasks or costs associated with most collision repair jobs should be considered by shops and added to the estimate as they generally reflect additional cost in repairing the vehicle.

“The survey results demonstrated the need for body shop owners to set aside more time to ensure their estimates include these real expenses,” said Eric Seidel, CEO and president of Web-Est, LLC. “We know adding normal pre-set charges in their estimating software can add thousands of dollars in revenue to an auto body shop, when using collision repair estimating software. This can be done very quickly and generally means estimating software pays for itself and will make the shop owner a profit on their software investment.”

Web-Est and survey participants say the following are often not included on estimates:

Color, sand and buff
Hazardous waste removal
Car cover
Antifreeze
Pin-striping
Front end alignment
Mask jambs
Clean & re-tape emblems/moldings
Seam sealer
Bag for overspray
Flex additive
Corrosion resistant material
Chip guardon
Specials – promotions such as “Bumper Day”
Protect undercoating
Tire mount and balance
Rack and measure frame
Towing
Clean vehicle from repairs
Masking
Color spray-out card for color match
Used part clean-up
Broken glass clean-up
Wheel alignment
Refrigerant
Shop materials
PDR
Let-down panel
Batteries
Adhesive removal
Clips and hardware
Prime and block
Set back truck bed

The online survey was sent to over 1,000 auto collision repair shops; nearly 80 percent of the shops had identified themselves as having three or less employees.


More information:

Web-Est’s Shop Profit Training Blog

You May Also Like

Body Bangin’: The Employer-Student Disconnect

Micki Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on what students want from a shop employer.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on students' desire for shops to work around their school schedule and let them work part-time ... yet most shops don't offer a part-time position. If a shop does do this and is flexible with the student, once they're done with school, they typically stay with that shop and go full-time. Are shops missing an opportunity here?

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.

Body Bangin’: The Magic of a Massive MSO with Patrick Crozat

Micki Woods interviews Patrick Crozat, the COO of G&C Auto Body, which is the largest privately-owned, family-owned auto body shop group.

Other Posts

Body Bangin’: Changing Your Mindset with Mike Jones

Micki Woods interviews Mike Jones of Discover Leadership Training on changing your mindset to change your life.

Body Bangin’: Rivian Collision Program and Insurance

Micki Woods interviews Frank Phillips, collision repair program manager of Rivian, on how Rivian’s collision program works.

Body Bangin’: Favorite Takeaways from the Southeast Conference

Live from the Southeast Collision Conference, Micki Woods does a post-show wrap-up on the Southeast Collision Conference with the SCC committee.

Body Bangin’: Overcoming Objections

Live from the Southeast Collision Conference, Micki Woods interviews Ron Reichen and Barry Dorn on overcoming objections, the talent shortage and the SCRS blend study.