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Industry professionals speak out on topics E-mail
Thursday, 01 June 2006

Over the course of the year, I receive comments and correspondence concerning the collision repair industry experience from shop owners and techs across the country. Below are some of the comments that have come across my desk. 

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Strom

"I can't help but think that we are playing into the hands of the insurance industry… another wicked ef-fect of DRP agreements that mandate the use of (imitation) parts, hence wide acceptance of them. Without DRP agreements there would be no market for them at all." (admission of a DRP shop owner)

Pick on the underdog

"Insurers can't win against attorneys, so they are picking on (shops), capitalizing on shops' stupidity. You must never forget that you can't offer a volume discount on labor. Labor can't be stored. Labor can't be liquidated. Labor can't be shipped to another store across the country where it is more in demand. Labor is only consumed in real time. Until collision repair processes can be automated, you cannot produce more (labor hours) with fewer people, unless your operation is presently being run inefficiently… We have already driven away half of our workforce, because few people remain who want to do what we do for the little we get paid. DRPs just make this worse." (shop owner)

Who can you trust?

"DRP-relationships only benefit insurers. They steal from shops, and steal from consumers. Attorneys General across the country are beginning to smell the stink from the DRP-pit. Just recently, after working with the Auto Body Association of Connecticut, A.G. Richard Blumenthal announced he was calling for the Insurance Commissioner to be an elected official, instead of continuing to be appointed by the Governor. Between the payola scam he was investigating, and the ABAC's complaints, Blumenthal got a firsthand look at the shenanigans in the Insurance Department. He saw a clear bias toward the insurance industry, and understands that it is contrary to the Department's mission." (shop owner comment)

What's a proper repair?

"When the collision industry cannot clearly define what a proper repair consists of, how are we going to hold an insurer to paying for one? If we allow insurers to write a contract to pay for a repair with 'opinion' as the standard, how is the contract going to be enforced? If we ask our customers to purchase auto insurance based on 'quality,' without ourselves being easily able to explain how to measure that 'quality,' either as it pertains to the repair, or to the contract of insurance to pay for the uncertain 'quality' repair, how are they going to make an intelligent choice? Educating people about the snakes and alligators in the swamp after they have been bit is too-little-too-late. Yet, if repairers and customers continue to play in the swamp, we're all going to keep getting bit. Maybe repairers and consumers together can bail it out little by little." (shop owner input)

A way to raise the bar

"The zeal for big profits has replaced the concept of taking care of the customer. The concept of getting repairs 'certified' is an excellent one, but we have too many whores in the repair industry who would 'certify' a bad Maaco job if the insurer asked them to. If we could ever set up 'certification' stations with qualified yet disinterested persons doing the inspecting, we could raise the bar of repair quality." (shop owner)

Message board persuasion

"I'm ashamed and embarrassed to admit that I was one of those 'get along' guys. I, like many of us who are smart enough to know better, rationalized my behavior by justifying this as part of the deal to put food on the tables of my employees, and to keep my bosses and owners happy… But this myopic, short- sighted vision has screwed us to the point that we no longer have control. I for one would not encourage anybody to get into this business unless they truly believe that the 'insurer way' based on volume and slim margins is the way to run a shop."

"I don't yet know you, but I've had the same feelings you express here. The absolute wrong thing is to become a DRP shop. The right thing for you to do is to join the CCRE and become an advocate of independence. The CCRE educates, supports, and links you up with other like- minded shop owners. CCRE's website and board discussions are totally private, without insurer participation. This is the only organization that has your best interests at heart. CCRE members will help you with any problems, and give real, tried and proven advice. Again, please join us." (post on a shop discussion board. The one to whom he was writing responded, "I just mailed my check to CCRE.")



 
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