The ABCs on DRPs - BodyShop Business

The ABCs on DRPs

Ever wonder just how many shops are on direct-repair programs (DRPs)? Based on BodyShop Business' 2000 Industry Profile, 44.8 percent of respondents are. And of that 44.8 percent, 91.3 percent say they're better off because of their DRP arrangements.

Are DRPs good or bad for the industry as a whole? 48.4 percent of all respondents (DRP and non-DRP) say they’re good, while 51.6 percent say they’re bad.

Reasons cited for why DRPs are bad include:

  • “People should make their own decisions as to where they take their vehicles.”
  • “They stifle competition.”
  • “You have to give concessions to get DRP volume. Control of the business belongs to the insurance company and not the shop owner.”
  • “They’re giving jobs to the lowest bidder.”
  • “The insurance company becomes the customer instead of the vehicle owner.”
  • “We’re doing all the insurers’ paperwork.”
  • “Promotes steering.”
  • Reasons cited for why DRPs are good for the industry include:
  • “Shops have a qualification program.”
  • “DRPs streamline claims.”
  • “They cut down on repair delays.”
  • “Better customer service.”
  • “They reduce time spent with adjusters and supplements.”
  • “If the shops stay honest and the insurance company is respectful of the shop, it’s a win/win/win situation for the shop, insurer and vehicle owner.”

Then there was one respondent who, it seems, couldn’t make up his mind as to whether DRPs are good or bad. So how did he answer the question? “It doesn’t matter to me either way.”

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