Tuesday, 23 February 2021 19:23

The Numbers Game: Are You Winning?

Written by Toby Chess


...$310 in labor and $170 for materials and clips---the invoice was $214 and their materials was an average of $44, leaving a net gain of $170.


I added $480 of totally justified labor and materials to the estimate. I added another 20 line items to the estimate, but I will leave the rest to another article in Autobody News.


A final note: some of you may be thinking, “Toby, how can I get paid for these operations and materials when I have DRP agreements in place?”
Well, I have several shops that are DRP-driven and have gotten together with their insurance companies and presented these labor operations and materials costs to them. They did it in a non-confrontational manner, choosing to educate rather than just start throwing new charges onto the estimates.


Generally, I’ve seen reasonable charges, backed by invoices, photo documentation or P-Page not-included statements are all that is needed to have most carriers to agree to these charges.


If you don’t reach 100% agreement on everything, you will need to have each item listed on your repair order, even if you do not charge for those items.   


Furthermore, purchases of new equipment and the cost of training comes from profits. Giving away these items necessary to achieve a complete and safe repair prolongs the time to recoup the cost of materials purchases and training. 


Having the knowledge to justify each estimate line comes from training and, I repeat, training is not free.


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