Domenico Nigro

Domenico Nigro (5)

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For some reason, refinishing is one facet of our business that we accept losing partial revenue on, or are content with our ignorance of how to properly be compensated. Unless you’re adding priming as a separate line item, you’re donating the time and materials to the insurance company. You need to make some very basic but critical changes to your estimating and billing procedures so you can start being paid properly for all the pieces of the refinishing process.

To view a pdf file of this article with photos, click HERE.

Have you heard the following from adjusters? “I’ll make up for it somewhere else in the estimate.” Or, “I’ll make it up to you on the next job.” They don’t want to be reprimanded by their bosses for paying out for procedures that they’ve been getting for free for so long. As an industry, we deserve to be paid for our work, all of it, and the supplies that go into it. This isn’t a cost like paying rent or your electric bill, and shouldn’t be considered overhead or a cost of doing business today. This is time and materials that are directly used in the refinishing process and should be billed properly.

Last modified on Friday, 06 July 2012 14:35
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The following is an interview with Chuck Gosney, President of Collision Billing, a company that could help bring the changes the collision industry desperately needs. In this interview, Domenico Nigro asks some direct questions on exactly how this company could bring needed change.

To view a pdf file of this article with photos, click HERE.

Last modified on Friday, 06 July 2012 15:12
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We know that customers only use a body shop once every seven years on average. For this reason, marketing to the end user is tougher than most other industries. To make matters worse, the insurance company is engaged in almost constant dialog with your customers. This relationship allows them to direct (steer) customers towards body shops that succumb to their demands and play by their rules. What commercials do your customers see on TV? Insurance companies dominate the airwaves but they aren’t the ones fixing your car and they don’t necessarily have the shop owners’ best interest in mind. If they did, they would always use the specifications and recommendations of the car manufacturer to use original parts when necessary, and not using aftermarket or used parts that are not recommended and take much more to install.

Last modified on Friday, 06 July 2012 15:49
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How much money are you losing each year by not charging for Feather, Sand and Fill (aka Feather, Prime and Block)? If you’re charging nothing, I can guarantee you $5,000 more in yearly profits if you follow this advice and start getting compensated for the necessary work you’ve always been doing.

To view a PDF of this article please click HERE.

Feather, Sand and Fill is a non-included procedure that takes the surface from 150-grit level smoothness to the condition of a new, undamaged panel that can then begin the refinish process. The labor and supplies used with with feather, prime and block may fluctuate based on the nature of the repair area and should be considered when deciding which work needs to be performed. I will address the issues many shop owners have in getting insurance companies to pay for this procedure, the laws involved, and possible solutions to consider.

In 2006, the Collision Industry Conference Estimating Committee defined feather, prime and block as “non-included refinish operations that complete the process from 150 grit to the condition of a new, undamaged panel... The body/paint labor and materials necessary to prepare the repaired area from 150 grit to the condition of a new undamaged part is a valid and required step in the process. The labor and material allowances for these operations requires an on-the-spot evaluation of the specific vehicle and damage.”

Last modified on Friday, 06 July 2012 15:28
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Modern vehicles are complex and increasingly easily totaled; advances like anti-lock brakes and traction control have increased driver control, and increased consumer awareness has improved safe driving practices. This all translates into fewer repair jobs and collision shops must follow best practices to remain profitable. But what about business declines due to steering?

To view a PDF of this article please click HERE.

Steering has existed since the beginning of the auto insurance industry and, while illegal, it may be here to stay unless something is done to change the awareness, standards within the industry and the laws that govern their behavior.

Steering hurts both the shops and the customer, and if there is going to be progression in this industry, a solution must be found and regulations must be enforced. Good body shops are being forced out of business. Car owners are receiving sub par parts and service. A solution would benefit the entire industry and its customers.

The shops trying their hardest to get work based on their reputation and work aren’t the only ones being affected. The customer is also affected by steering and it can be dangerous to more than the bottom line. Insurance companies can have agreements with shops and vendors where the car owner will get cheaper aftermarket or unexamined used parts, which can have hairline fractures or other structural issues that may be unsafe.

Almost everyone agrees that this practice hurts the industry, but for decades no progress has been made to change it. Obviously a steered vehicle usually ends up at a DRP shop, rather than an independent one, and whether you see steering as good or bad depends on which type of shop you have. One reason there’s not enough opposition to steering is that the shops losing jobs are balanced by the DRP shops that benefit from it. Solutions must be evaluated and once one is agreed upon, implementation and enforcement must be carried out and monitored.

Last modified on Friday, 06 July 2012 14:42

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