Friday, 07 January 2022 10:47

ABAT’s Consumer Complaint Form Drive is Making a Difference

Written by Autobody News Staff


...all of the liability and business risk, yet the shop is getting an insufficient return on labor sales and the technicians don’t have any risk.”


The goal, according to Ronak, is to create a way to recognize there needs to be a retail pricing differential in the marketplace.


“Rather than negotiating a $2 to $3 break, we should look at those as a percentage discount from the retail rate,” he said. “When we raise our retail rate, instantly, that should track back to any type of insurer agreement by maintaining a consistent ‘trade discount’ from the consumer retail price.”


Ronak explained the differences in the retail, market, prevailing and contracted rates:


  • Retail rate: a shop’s individual posted rate
  • Market rate: the average rate of all shops’ retail door rates in the local area
  • Prevailing rate: an asserted rate by a third-party using the survey method they decide
  • Contracted rate: the rate agreed to by a third-party contract and conditional on receiving work through a DRP


“Ideally, the prevailing rate should be the same as the market rate unless those determining the prevailing rate in a market use contracted or discounted pricing values,” explained Ronak. “When that occurs, it may understate the actual market rate.”


Richards stressed the importance of having a fair system in place.


“We’re allowing an insurance company to...