More on ... Troubled Times
4/1/2008
In reference to your
“Troubled Times”
article, I’ve found that many shop owners have put themselves in the
position of going to war with the insurance companies and their tactics
rather than going to the negotiating table with their concerns about
profitability.
I know of no insurance company that demands that we repair the car its
way or else. Some insurance companies do have policies in place that
bring the cost of the repairs down (e.g. using aftermarket,
reconditioned or recycled parts). But I have to ask, is it the
insurance companies’ fault that these parts are offered as an
alternative to OEM parts? I say no. It’s a goal of a business to make
the bottom line, and if these parts suppliers can offer ways to make
the bottom line better, then I don’t see why the insurance companies
should back out of improving the bottom line.
Regarding aftermarket parts, the burden should be put on the companies
that offer the parts as same fit and quality. In other words, the parts
need to be certified better before they can qualify to be put on a PXN
list. The shop owners need to hold the suppliers more accountable for
the cost (retail rate, not cost rate) to deal with these parts when
they won’t fit properly. Some of the suppliers want you to fit the part
first, but I don’t feel it’s our job to test the product when it should
have already been proven to fit at least 99 percent of the time.
Besides, I’m sure most of the shops out there are production shops and,
if it’s a minor repair, take the part directly to paint anyway before
pulling the damaged part. From what I’ve seen, this is a method used by
many to improve production.
The same goes for reconditioned parts. The companies that offer these
products need to be held accountable. As for recycled parts, if they
come in paint ready, that’s fine, but if they come in with some damage
that needs repaired, my shop charges to repair that part at customer
rate to make it paint ready.
The bottom line in my shop falls completely on my shoulders, and if I’m
not making the percentages needed, then it’s up to me to negotiate with
the insurance companies to get where I need to be. Satisfying our
customer (the vehicle owner) is and will always be our number one
priority. Without the customer, both the shop and the insurer is out of
business. If you, the shop owner, cannot take the time to look at all
levels of efficiency and can’t work with the insurance companies in a
reasonable manner, you’ll be in with the last of the dying breed. Like
it or not, DRPs are here to stay, and it’s up to the shop owners and
the insurance companies to work together as partners rather than
blaming every thing on insurance companies.
Clayton Horrocks, Manager
Morse Chevrolet
Overland Park, Kansas