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Wednesday, 08 September 2021 16:37

Consultant Says CA Auto Body Shops Need to Know the Laws that Affect Them

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Juan Martinez leverages two decades in the collision repair industry to help auto body shops as a consultant through JM Business Solutions, Inc. Juan Martinez leverages two decades in the collision repair industry to help auto body shops as a consultant through JM Business Solutions, Inc.

Index

..."I shouldn’t take this car in." These shops are more concerned about making money. But if you’re not a Porsche-certified shop, don’t try to work on one. Their attitude is that they’ll figure it out, but in the end it’s unsafe for the owner of the vehicle. Not to mention that it’s also a bad business decision for the shop.

 

In many cases, they’re not going to make money on the repair. It’s likely that they will also make mistakes, which is a liability issue. I can safely say that 80% of all the shops out there right now have at least one vehicle they should not be repairing. It’s no sin to admit you don’t have the training or equipment to work on a certain vehicle, so find a shop that can do it and give them a referral.

 

I get calls all the time from shops who say we don’t know how to write an estimate on a higher-end vehicle, can you help us? Ninety-nine percent of the time they shouldn’t have taken the car in at all. I tell them to refer it, get your teardown money and a couple days of storage, and then move on.

 

The insurance companies abuse body shops by operating with impunity and violating legislation that was created to protect consumers. Most shops don’t know the law. So, they can’t usually catch things, like paint caps that are illegal. But no one addresses them, so guess who pays for it?

 

If you don’t have well-trained estimators, they won’t catch things and the insurance companies love it. They prey on the fact that most shops don’t know the regulations, so it’s to their advantage. I see so many poorly written estimates, it’s crazy. To make money, they must be cutting corners, because otherwise they would be out of business by now.

 

What’s your opinion about DRPs? Should shops pursue them or reject them?

 

There’s a market for DRPs, but the problem is they’re not the same. The DRP game has changed so much in the last 10 to 15 years, and more and more shops are gravitating away from it. Unless you have other sources of revenue, DRPs aren’t profitable enough to keep the doors open.

 

They used to be the main source of revenue for many shops, but now they’re...