Knowledge is power.
Members of the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) were shown just how important this statement is during the association’s recent virtual meeting, which featured tools and resources designed to help collision repairers get paid more for the work they do at labor rates they deserve.
AASP/NJ welcomed Richard and Sam Valenzuela of National AutoBody Research (NABR), creators of the Variable Rate System (now known as Labor Rate Hero), who gave attendees the latest information regarding their New Jersey Labor Rate Survey results, advancements to their BillableGenie program and how their most recent endeavor, LaborRateHero.com, can be used to shops’ advantage to get properly reimbursed.
“The punchline here is that this tool enables shops to get paid for more of their work at better rates,” Sam Valenzuela said.
To date, about 220 shops in the Garden State have responded to the survey. Sam Valenzuela encouraged attendees to either participate in the process for the first time or take it again if they haven’t done so in the past year, to ensure NABR has the most current data in its system.
Results collected to date have shown New Jersey shops’ posted door rate for body labor has indeed increased over time. Attendees also learned what the average posted rates in the state were in comparison with the average posted rates across the U.S.
The cost of living in the Garden State is 23% higher than the U.S. average, yet New Jersey posted rates do not reflect this higher amount.
With the newly launched LaborRateHero.com, anyone from consumers to body shops and even insurers can view what the posted door rates are at body shops in any area of the U.S. This data can be used as ammunition to show insurers they do in fact pay for work at higher rates.
“Do [insurance companies] ever show you the list of body shops to show you how they come up with the rate [they pay]? No, they don’t,” Sam Valenzuela observed. “In a free market economy like we are supposed to have---and especially in this industry---it’s a fight. It’s very important to have...