It’s All About Who’s the Cheapest
3/1/2008
You talk about honesty in
BodyShop Business, but what good is it if most of the people you work with in the collision repair industry don’t care about anything but money?
I was on our state board for the Automotive Service Association for 15
years, the Alliance of Automotive Service Providers the Coalition for
Collision Repair Excellence and many others. We tried to clean up our
industry and make a reasonable profit, but the insurance industry used
every trick in the book to undermine our efforts. And the majority of
the shops in our industry have bought into those tricks!
Since State Farm quit its survey, our area hasn’t had a rate increase
and probably won’t until several shops go out of business. Then,
they’ll toss us a bone.
We achieved our I-CAR Gold status and had it for many years, but in all
those years only one insurance company cared enough to ask if we had
I-CAR training. Because of our training, the insurer chose us as its
DRP, but it wasn’t a big account.
The biggest DRP shop in our town of 35,000 was caught charging State
Farm for new parts and either straightening or putting used parts on.
In fact, this shop has been caught doing this three times. But State
Farm doesn’t make this shop replace the used parts, it just wants some
money back, and the car owner gets nothing more. And the shop is still
on Select Service because it’s cheap.
This shop helps keep all of our labor rates down, plus it has never
sent anyone to an I-CAR or any other training class. But none of that
matters because, once again, it does work for cheap.
I know of several very active shop owners from a few years ago who
chose to direct their talents to other professions. I’ve reduced the
personnel in my shop and have turned the shop over to my wife to run
for five more years till we retire. I’m currently working in a totally
different industry and making more money – and I have insurance
coverage that we previously couldn’t afford working in the body shop.
We’re glad our sons have left the body shop business and have chosen
other professions. I wouldn’t recommend that anyone go into this
business.
I realize you can’t print names of insurance companies and shops, but
you do need input from guys who are on the frontlines so you can keep
informed. This industry is headed the way of the towing companies, and
in our area they don’t have a good reputation. Until someone agrees to
pay for a service that is actually performed, the good guys will just
keep leaving, and you know what you have
left then.
Name withheld for publication