Continue to go out of your way for insurance companies…Why?
Because, as soon as you do it once, and show willingness to compromise, you show weakness. You've opened a can of worms that will never close. They will continue to demand more and more, and those demands will get more and more unreasonable.
Now I'm a big fan of doing more than paid for and going the extra mile for vehicle owners - doing so always pays off in the long run. Your customers will appreciate it.
But to illustrate my point, in the case of insurance company negotiations, you can take those same principles way too far. Then they expect it. Next they demand it. The problem is that as soon as you compromise, you not only look desperate, but the insurance company will expect you to compromise your profits away again and again and again! With many insurance companies the situation gets so bad that they call and complain if you don't respond to demands that are totally unreasonable and outrageous, like picking up damaged vehicles at their location and returning those same repaired vehicles back to their location and never allowing you to meet the vehicle owner.
The moral of the story is that compromising with insurance companies and giving in to their outrageous demands eventually leads to disaster. And in some cases, to become finally so overwhelmed dealing with these monsters you’ve created that your sales numbers could rise and yet you’ll still go broke.
Stop being at their beck and call
It's something too many bodyshop do when they're desperate to improve their sales, and sometimes it works, but it sets the stage for having an overly demanding, monster DRP relationshop on your hands. They aren't worth it. They'll eat up all your time, never be happy with your touch-times, cycle times, average severity, parts to repair ratios and stress you and your estimators out to where you're no longer showing the confidence needed to negotiate a profitable sale and close sales effectively.
Simple solution: Make sure you start each and every sales interaction from a position of power. This power is determined by who needs something, and who can say yes or no. Even as you demand your estimators do daily estimate callbacks, you're very clearly demonstrating that you need a sale. And the vehicle owner then has all the power.
However, vehicle owners come to your shop every day with a need. In those moments, you do have the power! Odds are great that these insureds don’t even have their deductible saved in reserve. Controlling the situation will create a sale, at or near full price, with profitable labor rates and without ever having to compromise.
Easy: Offer your customers ‘in-house” installment loans for their deductibles. Include your increased labor rate and the 6% that Collision Financial Services charges collision shops for managing your customers loans. Plenty of other answers are at www.collisionfinancialservices.com It's the complete storehouse of all the knowledge and inside information that bodyshops and collision centers are using to affect higher, and more profitable sales. The best part is that you now have the power.
Just register your shop at www.collisionfinancialservices.com today.