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Tuesday, 10 November 2020 19:21

You Have Not Because You Ask Not: Mike Anderson Presents During IABA’s First Public Virtual Event

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Mike Anderson Mike Anderson

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Getting paid for the work performed is key to running a successful collision repair shop, but no one receives payment for items that aren’t invoiced.

“You have not because you ask not,” Mike Anderson of Collision Advice stressed, while presenting “Positioning Yourself in the Collision Industry” during the Indiana Auto Body Association’s (IABA) first virtual chapter meeting, “Your Body Shop Future: How the Industry is Influenced and Changes You Can Make.”

 

Anderson explored the results of the most recent Who Pays for What survey, conducted by the CRASH Network and Collision Advice. He addressed the impact COVID-19 has had on claim and accident frequency, as well as on shops’ backlog.

 

“Just over half---52%---of 400 responding shops are scheduling new work within one week,” he said.

 

After examining shop population and average repair order by state, Anderson dove into average body labor hours per estimate, noting, “Indiana has remained consistent. Paint labor hours are fairly consistently in your state as well, but they’ve shrunk nationally over the past few years.”

In the future, mechanical labor is most likely to grow, according to Anderson, who offered, “If I was advising you as a consultant, I’d ask you to assess whether you’re doing your own mechanical work in-house. If you’re subletting it, now is the time to decide if it’s worth hiring a full-time mechanic---and if you’re a profitable shop that wants to remain profitable, it probably is!”

 

Only one in four shops report using a materials invoicing system, yet of those who do, about 60% said they are paid based on the materials invoice “always” or “most of the time.”

 

Encouraging shops to participate in the free quarterly Who Pays for What surveys, Anderson explained how the surveys “help shops determine if others are being paid for procedures their shop is doing but not getting compensated.”

 

Shops can use the surveys to train their staff, to show the consumer what they are requesting isn’t unfair or unreasonable...


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