That's what a bodyshop owner recently said to me.
Does Having DRP’s "Help" Your Bottom Line?
According to most industry experts, yes, it does. But it does so at YOUR expense!
The gist is this: "Your repair order sales average will be lower, but collectively your shop will make enough. DRP’s will create enough business to improve your sales and bring in enough profit.
Very sad to say, they're right. Far too many bodyshops and collision repair centers take this approach because, at least within their very limited thinking, agreeing to stay compliant, and making enough is easier than marketing their collision centers.
A Terrible Truth
Some are even more blunt: You might go broke repairing vehicles for the “prevailing” rate, but that's not our problem! Their thinking: Let them go broke until they can bring in customers themselves who will generate a more profitable revenue.
Our Sickening Reality
Does this gem of backwards, atrocious thinking ring a bell?
“If we send you X number of vehicles and you keep the average severity below X $, we will send you even more vehicles.”
Did this crap ever really work for you?
Why not? Because this phony math never works out in the real world - for anyone. Adhering to some of these insurance generated KPI’s is an expensive waste of your time and your money. Do you still believe in the “myth” of the prevailing rate? Directing your estimators to “be more compliant“? Ever increasing demands that your technicians somehow "increase their productivity”? Why do we continue to use these weak excuses to negate real profits available? Was generating profits just over breakeven, what you intended when you started your bodyshop?. The bottom line is that you, as a bodyshop or collision center owner, cannot afford to continue fooling away your time, whining about low profits. Especially now that you're aware and know full well that some insurance DRP’s hurt YOU in the end, to their benefit!
If you want huge sales success - and I mean HUGE success - you'll never get there by doing the same old things you’ve been doing. Learn a new effective, leveraged, strategy and tactics to generate an endless supply of vehicle owners, wanting to get their vehicles repaired at your shop. Deductible Financing will allow you to be more profitable and then pay your employees better.
If I've said it once, I've said it a thousand times:
Estimators must never "sell." Their job is to get people to want to buy. Meaning customers want to buy from you with no coercion and/or manipulation. What is commonly called "selling" is no longer necessary. No one likes to be “Sold”.
Register your shop @ www.collisionfinancialservices.com and start offering customers “in-house” deductible financing managed by C.F.S.