All too often collision repairers merely accept what the insurers say they should charge or what the insurer is willing to pay?
The question begs to be answered:
Why Would Anyone Take Advice on How to Collect Money From Those That Owe it!?
Imagine if we could go into a retail provider of goods and services, and regardless of the level quality they offer, tell them what we are willing to pay them… and get away with it!
So what can and should a business do to ensure they remain competitive in their market area? They should conduct research such as visits or phone surveys of what other in their market area, who offer the same level of service and quality charge for their services. This is done by most all competitive businesses including auto makers, restaurants and yes…even insurers. Imagine attempting to tell an insurer what they should charge for their premiums? What response would you likely get…? I’m fairly certain it would go like this…
“Ha, Ha, Ha…No, I’m sorry…. are prices are pre-determined based upon the competitive landscape and the incurred risks we choose to accept and not open to adjustment or modification…have a nice day!”
So what can and should a collision repairer do to determine a competitive labor rate for their services in their area while comparing Apples to Apples rather than comparing one to a fruit basket? You could always try to do it yourself but you would have many hours involved and at the end of the day, the information provided you may be inaccurate, and as such, your survey results would be subject to scrutiny by others…or even discounted as bias and not independent or impartial.
One extremely viable and effective independent solution is National Auto Body Research’s Variable Rate Survey or VRS. VRS performs truly independent and impartial labor rate surveys across the country. The great thing about this survey is that it is not a one-fits-all survey…it derives rates and allowances based upon participating repairer’s various algorithms including, but not limited to collective training, certifications, capabilities and such; no longer are the best of the best relegated to the same low labor rates and allowances of the worst of the worst! No longer are “The Outbacks” forced to accept McDonald’s pricing!
If you struggle to attain a labor rate that enables you to re-invest in your company and the funds necessary to properly compensate your staff (and yourself) and enhance and update your facilities and equipment, undergo marketing and such, it’s time to re-evaluate your labor rates and allowances.
I encourage you to review the accompanying and to visit the following link and to contact Richard or Sam Valenzuela at VRS and look into identifying the labor rate in your area and how you compare.