The Concept of DRPs: Good or Bad for the Industry as a Whole? - BodyShop Business

The Concept of DRPs: Good or Bad for the Industry as a Whole?

When asked if the concept of DRPs is good or bad for the industry as a whole, it’s no surprise that 85 percent of the respondents to the BodyShop Business 2002 Industry Profile who aren’t on DRPs say they’re bad. Many of you in that 85 percent are downright anti-DRP and have great arguments as to why. On the other hand, some of you are still smarting from rejection because, for whatever reason, you haven’t been able to get on DRPs – so, to convince yourself that you don’t care, you now tell anyone of English-speaking origin that DRPs are evil and that you don’t want anything to do with them.

Frankly, 85 percent of non-DRP shops not liking DRPs is no more shocking than a Hollywood couple getting divorced. It’s expected.

But what about the 42 percent of you who are on DRPs? You should be “Rah, rah!!” direct repair, right?

Apparently not.

Seems we’ve got a case of the pot calling the kettle black. About 32 percent of you on DRPs say that they’re bad for the industry. Why?

  • “The wrong people are making decisions.”
  • “A lot of DRP shops let the insurer run the shop.”
  • “Insurers are controlling labor rates and dictating that cars be repaired per their guidelines.”
  • “The insurer steers work to the DRP shop.”
  • “Soon it will be like the healthcare industry.”
  • “Good quality shops aren’t on DRPs and those who can’t get on will be forced to close.”

Maybe I’m interpreting that last comment wrong, but it sounds to me like this respondent just implied that he – being on a DRP – doesn’t run a quality shop because, after all, quality shops don’t get on DRPs.

Not as strange, 67 percent of those on DRPs say that these programs are good for the industry. A few of their comments as to why included:

  • “If no concessions are asked for, repeat work between shop and insurer builds trust and a better work environment.”
  • “DRPs simplify the repair process for everyone involved.”
  • “Cuts repair time and paperwork.”
  • “They’re good as long are you’re involved. Bad if you’re not.”

It’s interesting that none of the DRP shops said that DRPs are good for the industry because they help to increase shop profits. Not one. Instead, they referred to streamlining the repair, building trust with insurers and making the process more convenient for customers.

Has DRP affiliation helped to increase shop profits? Why are so many shops hopping on the DRP bandwagon when they say DRPs are bad for the industry? What concessions are DRP shops giving to insurers? Is insurer steering of repair work increasing or decreasing? Read on for the answers to all these questions – and more.

You May Also Like

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

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 Kevin Wolfe, owner of Leaders Way and former mechanical shop owner, on how he became the shop everyone wanted to work at. Wolfe also points out that 73% of work professionals today are disengaged — an all-time high — and discusses why that is and how we can fix that.

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.

Other Posts

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.

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.