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.

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