“Body shops in your area have recently started billing for items used in the repair of vehicles, such as masking tape, rubbing compounds, sandpaper, razor blades, paint mixing cups, and gloves. It has become customary that these items be included in the ‘Paint/Materials’ line on the estimate. It is the opinion of GuideOne Elite Insurance Company that these items are the cost of doing business and are accounted for in our estimate. We recognize it is your decision to have your vehicle repaired at the shop of your choice and we will do our best to negotiate these items off the shop estimate but, be advised, if we are unable to do so, we will not issue payment for these items which may appear on the shop estimate as ‘Repair Materials’ or ‘Shop Materials.’” (GuideOne estimate disclaimer to one of their policy holders)

Bright Minds In and Around the Collision Industry Speak Out
“The collision industry looks at their colleagues as competitors: if they changed that around there could be some forward thinking on to change. It’s funny that when I got into the collision business there were some large shops that fought and won for compensation for their work. Then the ‘weeny’ boys (me included) ran to get DRPs. In my case I knew that if I lost any of my DRPs, especially if I lost a large one, I was done. That’s what happened to the guy who bought my shop. He didn’t do the service and lost two large DRPs, and folded.” (southwest former shop owner)

    “Let’s forget about trying to buy a wrecked car for more than anyone else in the entire world thinks its worth, and then try to sell the parts for less than anyone else thinks they are worth, and hope to end up with more money in the bank than we were loaned in the first place.” (Paul Davis —A Plus Parts & Salvage)

    “Try this test: For one month, write every repair job that goes through your shop using your true posted rate. Do the math if you have to, or at least call five car dealers and ask what their mechanical rate is. Then add 35% to that, because the body shop is at least 35% more costly to run than any mechanical shop. Average the rates and write every sheet using that rate. Put down every P-page item you need, right down to a fee for parts disposal. Charge for every liability you accept by doing a repair. Use a paint calculator, and include a mark-up amount you need. Keep a running total on every job. After a month you’ll find you are leaving about 30–50% of your current total sales on the table. Just so you don’t upset your insurance partner too much, when you bill the job back into the insurance number the way you have been doing for years, write off the rest as a discount. Take a one-item line discount to balance out the debacle.
    “If you’re going to give it away and lose money, you might as well know how much it is you’re losing. Tell your customer it’s a “courtesy discount” so they know the value of what you’re giving away (and so will your insurance “partner”). Or call it a concession. But know what it is: a lot of lost profit, never to be recovered. After a month, you’ll see a pattern of the numbers that (attorney Bruce) Cornblum speaks of. Then maybe, just maybe, you’ll reach out and ask for help. There is a better way, and it does include a secure future for your business and you family.” (New York State Auto Collision Technicians Assn. president and long time shop owner Mike Orso quoted in 1/30/08 CrashNetwork)