DRPs

With five DRPs, down from 9 two years ago, 99% of the shop’s business is still paid by one insurance company or another. Current DRPs include State Farm, Farmers, Mercury, 21st Century and Kemper. DRPs with AAA, Allstate, Allied and Nationwide have been discontinued by the shop.     

Industry advocate
Amaradio is an advocate for the collision repair industry. As a member of CIC, the CAA, and on the boards of CRA and Assured Performance Network, he writes and speaks to industry pros about how to change the state of the industry. As a columnist for Autobody News, he exhorts shop owners to stand up for themselves.

And he is adamant about operating with integrity and delivering quality repairs,  explaining “We only offer collision related services. We are collision experts and that is where we put our focus. Rather than setting up ancillary profit centers, I believe in raising prices so I can make money doing what I know. I’ll leave the accessory sales to others. We fix wrecks.

“And we are not afraid to charge what it takes for my business to make money. That is why I am in business. We just raised our door rates to $48 for body and paint, $70 for frame, and $80 for mechanical.

“When we realized that increased fuel costs were causing us to lose money on paint materials, we began charging $40 (as of January 1, 2008) per paint hour or we invoice our paint. We specialize in a repair that is completed according to the original manufacturer’s recommendations. I would rather reach into my pocket to do a proper repair than compromise quality. And we specialize in making a profit doing it.

“We stand up against the substandard repair. Unfortunately, some shops think they can get away with the same substandard repair they have always done. We are and will stay on the leading edge of technology. Unless they stay current, many shops will not be equipped to repair vehicles of the future. When they come up against boron, aluminum and other specialty metals, they will find themselves in serious trouble.

“The industry has changed immensely. When I started in collision repair, the shop controlled the flow of business,” asserted Amaradio. “But some bad apples charged for parts never put on the car and other shady practices. When repairers teamed up with insurers, there was more oversight and practices such as cost shifting no longer seemed necessary. During the first several years, we made a ton of money – making a small percentage of a huge volume.

“As a Christian man, I believe God has blessed me with a purpose. Like David fighting Goliath, I feel compelled to stand up for what’s right. We have to stop bowing to the insurance companies out of fear. It’s important to set a precedent of getting fair prices and not back down. If the collision repair industry stands together, we have the power to reclaim our autonomy.”