DRP’s Help my Bottom Line


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.

Why are my Estimators not Good Enough at Sales?


A business can no longer afford to throw darts at a board by relying on multiple estimate callbacks and hope to increase estimate to repair order ratios enough to make a good living.

Additionally, most people are no longer very tolerant of that method. Today, it is now crucial to recognize four new categories of capturing collision business:

Vehicle owners who will not have their vehicle repaired at your shop, no matter what.
Vehicle owners who want to have their vehicles repaired at your shop because the insurance company said so.

Vehicle owners on the fence, who may or may not have their vehicle repaired at your shop.

Vehicle owners who would commit to repairs right now - if they just had the funds in reserve to either make their deductible or pay for their repairs

Group #1 isn't so bad. Because they'll tell you, “No” upfront. Unless you're hard-headed or simply stupid, you'll continue on to someone else. A leading sales expert once said, that the single best thing he ever did for his sales career was to abandon prospects after they said "No" twice, instead of just chasing after them forever. He stated there are just too many good prospects out there to waste time chasing bad ones. Maybe that once was true.
Group #2 can be a ticking time bomb in your business as your insurance “partner” becomes ever more demanding of your employees and continues squeezing the profits from you one drop at a time.
Group #3 are a disaster and can be the leading cause of failure in your estimator’s sales. These people never make a decision to say either "yes" or "no" and will string
your estimators along forever. Additionally, with these people, the more aggressive tactics used, the less likely they will ever commit to allowing your shop to do the repairs. They're the ones who will waste your estimator’s time in multiple estimate callbacks, saying they’re interested, then never schedule a repair, return another call or email. Or they'll ask them to keep calling back next week, only to tell them each time, “Try us in another week.” Just thinking about these time wasters, I used to get perturbed, not only because of how much time and money they cost my estimators back in the day, but because I now think indecision is not just a cowardly trait of human beings. Truthfully, most of these people just don’t have the money reserved to commit to the repair. Why not offer them a financing option?

Group #4 is the easy ones you should want. Vehicle owners who are predisposed to commit to you. If you can solve their dilemma. Not enough cash or credit. Just offer your customers “in-house” loans to allow them to pay their deductibles. Get started on the a new fast-track to generate more sales and easily get paid profitable labor rates. Roll the increased labor rates and C.F.S. 6% charge into their deductible loan. They will be glad to pay it. Register your shop today at: www.collisionfinancialservices.com

I Need More Sales - I Should Write More Estimates

I Need More Sales - I Should Write More Estimates

I almost laugh out loud at when I hear this logic. Typically its a very telling statement of desperation, and more specifically, of simple-minded owners and managers who tell their estimators to write more estimates and make more estimate callbacks daily.

Write more estimates and make more estimate callbacks? Really?

The idea of writing more estimates, is predicated on flawed logic: "We don't have enough sales coming in, our estimate to conversion ratio sucks unless an insurance DRP delivers a customer to us on a silver platter. Our estimators suck as sales people, so we need to do more of it! The concept is: Write as many estimates as possible. Make multiple callbacks to every vehicle owner for whom you’ve written an estimate.
Stop being a dumbass.
Does simply writing more estimates and harassing customers on the phone, ever result in plenty of more customers? Sometimes. Is this the most effective and profitable use of your employee’s time? No. Here’s why it doesn’t always work anymore. It's pretty obvious that writing enough estimates, you can definitely get several commitments. Especially if you have chosen to be compliant rather than profitable.
However, often estimates made for non-DRP’s vehicle owners and then making estimate callbacks convert into sales at an astonishingly low rate.
I can remember spending 60% of my time writing estimates and making estimates callbacks before I knew better. Truth is, once the customer leaves your shop without making a repair commitment, it may only generate 5% of your total sales. Why is this so?
Quite simply, because even busy, successful people have not reserved the cash to meet their $1000 deductible. After they leave your shop they will almost never accept your call back after the first one. Who’s left? Time-wasters, people who have nothing better to do, or worse yet, to quote an old southern saying, “A wreck will make a preacher go to hell.” These individuals actually think they are going to make a buck out of this accident. Others always want to talk more, but they never commit.
The main problem with just writing more estimates, is that it focuses on quantity over quality. What happens then? Estimators rush from estimate to estimate, quickly writing estimates, getting no repair commitments or many repairs scheduled. Not to mention writing a profitable estimate. They are usually just focused on writing a DRP compliant, minimally profitable estimate. For most, the end result is a bunch of wasted time and worthless estimates with people who are never going to commit and let you repair their vehicle. Because they often don’t have the money. So you've not only wasted a bunch of time writing the estimate, but now you get to waste more time on fruitless estimate callbacks, and probably leaving multiple voicemails for these non-buyers. Believe it or not, some top collision center pros go so far as to be selective about performing only profitable quality repairs, and not trying to be the repair shop of choice for difficult low profit vehicle owners and insurance companies
Solve The Problem
If you want to increase sales, improve your estimator's morale, and increase your collision center profits, listen up. Get off the hamster wheel.
Stop accepting poor estimate sales ratios and start doing something that works instead.
If you don't know what that is, no worries. Offer your potential customers “in-house” installment loans managed by Collision Financial Services. It works. In fact, roll the 6% C.F.S. charges for this service and a increased and profitable labor rate difference into the loan. It's that simple, your customers will be glad to pay it. They are much more concerned about, “How much per month? Than the loan details. Register your shop today at: www.collisionfinancialservices.com

Always be Yourself - Unless You Can be Captain Kirk


Are your estimators working almost 100% of their time writing insurance DRP compliant estimates? You know, the ones that are never cheap enough, that always have too many OEM parts being used instead of minimal repair times?

The ones that forces you to pay your technicians a wage that has not kept up with inflation and then demand them to perform at very high proficient rate to keep the whole thing working? Maybe you actually run enough volume to make a good living. That methodology seems works for MSO’s right?
I’m going to suggest that for many successful and profitable collision centers, that is now becoming a very outdated, old-time business practice. Some bodyshops have perfected Collision Financial Services next-generation methods. A more intelligent system that, will work almost on autopilot and create more customers for your bodyshop. Then allow your estimators to spend more of their time closing sales from people who are ready to commit to having their vehicle repaired at your shop.

Now in fairness, your estimators may be good salesmen. Would you like to help them become, great ones?

You may have been in the same business, in the same city, for 25+ years. In that time, preformed excellent collision repair services, as all successful bodyshops do. As a result, is your bodyshop provided with plenty of referrals? More than your shop can handle and do your estimators get to pick and choose the best ones? Then send other local bodyhops your less profitable leftovers to struggle with?

Maybe you started your collision career in a different time, before the internet, and before DRP’s and MSO’s complicated sales. Back when deductibles were only $100 or $250? Back when William Shatner was James T. Kirk? Not like the $1000 deductibles common and rampant today.

I've mentioned in previous emails, according to a recent USA Today article, most people at all income levels do not have $1000 set aside for an emergency.

Most collision industry old-timer’s don't understand that. A few lucky ones, due to a huge book of business, with their property already paid for, not competing with MSO’s or heavy reliant local DRP relationshops haven't had to worry about enough work in over a decade, and actually have no idea how difficult, if not impossible it can be to stay profitable in the collision industry.

Imagine a travel agent from the past catapulted through time, only to discover in our current reality, travel agents are obsolete. They find that William Shatner, was no longer the captain of the Starship Enterprise, but just a cheesy salesperson for an
online travel site.

When your estimators are in front of someone who is pre-disposed, ready, willing, and able to commit to getting their vehicle repaired from your bodyshop, one can no longer prosper in an older reality of using estimate callbacks to gain more repair commitments. A far more intelligent and reliable method is needed. Register your shop today at:
www.collisionfinancialservices.com Offer your customers “in-house” loans. Roll the increased labor rates and C.F.S. 6% charge into their repair or deductible loan. They will be glad to pay it. Live long and prosper.

Bodyshop Sales Failure = LAZINESS


Bodyshop sales failure is often a sign of laziness. I said it but what do I mean?

Go way back to when you started your own business. You were ambitious, you strove to be a successful business owner, got off your butt, left the safety and security of the job you held, and got started. Sometimes with little or nothing but blind-faith. It’s been said, “Having a job is a sign of laziness.” Taken in context there is truth to that. Moreover, we in the collision industry typically work within our own historical contexts. Typically these situations have been made for us by the third parties that mostly successfully controls our rates. We have been conditioned to accept them.

Umpteen bodyshop owners and managers have no real desire to improve. You and I have met people who have allowed the current “system” to work and have become well off, while building large collision shops that are totally organized, and employ a large number of staff and technicians who through hard work make enough under their existing market conditions to feed and clothe their families. These bodyshops receive a large volume of business with minimal profits, despite their estimators sometimes creating zero sales on their own for a year or longer. They keep their doors open by being very compliant and striving to keep “big brother” happy job by job.

Others talk the talk, point fingers and wish to improve, however, you and I both know, talking, pointing and wishing doesn’t accomplish much. This type of individual will very rarely walk the walk when it comes to implementing needed change and working to improve their sales.

Lastly, there are collision and bodyshop owners and managers who either understand that there has to be a better way to manage their business than what we’ve mostly encountered to date or find themselves effectively, “locked out” of their local DRP relationshop dynamics. “They never let poor Rudolph join in any of the reindeer games.” If you can relate to that verse, you know who you are and why. You're are making a conscious effort to continually learn and improve. They compass the spectrum from brand-new smaller bodyshop owners who have no idea exactly where to begin, but who burn with a desire to succeed and will make the effort to do so, all the way to some very elite top collision center owners who have big sales figures every year but see very little net profit. It’s safe to assume that you’re in this last category. If not, why you would bother to read this far?
My Best Sales Secret for More Sales
This one is simple: Start acting like a good, caring business owner. If you observe the very best estimators, you'll notice that they don't act like automated DRP order takers or worse, sales people. They've learned to be personable, and to talk to vehicle owners like they would an old friend. And guess what? This puts the person needing their car repaired at ease and makes him or her feel like an old friend. Once that happens, quite often, they will admit that they have no idea how or where they’ll get the money together to pay their deductible.
I recently heard another leading sales expert say, “Start doing estimate call-backs at 7am everyday.” He stated that as excellent advice to build your business and create more sales. Of course, I can already hear someone suggest: “7:00 am! Maybe that’s why I haven't been able to reach those people!” You mean the ones who never made a repair commitment at your shop? Let me know how that works…
There are lots of answers to the problems of not enough sales and not enough profit.
Want to watch your sales and profits increase quickly? You can find answers at www.collisionfinacialservices.com . Strategies, and techniques that will increase your sales and more importantly, your profits. There is an endless number of qualified vehicle owners that need your services. Who are ready to buy right now. You do not have to be slow or cater to the whim of outside forces.

The #1 Reason Most Estimators Fail


Most estimators have been handicapped by your current “recipe for success”. Most bodyshops seem to go through life absolutely refusing to ever do anything different at all.

Since the collision repair business is an extremely competitive field, one that is very difficult for most business owners, you'd think that they would be looking for innovative new ways to increase sales and become more profitable. But sadly, its not so.
Inaction is a Curse
The standard routine is, people make excuses as to why it there sales are so pathetic, why their labor rate is low, why they can’t find quality techs and lots of other finger-pointing about why nothing has been changed to the better yet.
We started talking with collision centers about some things that could be done differently to effectively allow their shops to almost double sales. There were lots of lazy excuses such as, the guy you’d need to speak with is on vacation…and maybe call again next week... The irony here is that the bodyshops will prosper much more than C.F.S. will as a result of these changes. However, quite often, trying to get them off their duffs to do anything new and different is rather difficult to do.
And on and on and on. It never ends. Seeing how most collision businesses continue to operate, is to me, the number one reason for the condition we as an industry find ourselves today. It's not insurance companies or high taxes, the lack of technicians or our politicians. Or anything else. It’s our own fault. Frustration, conditioning, laziness on our part? Take your pick.
Wasted and Lost Opportunities
The bottom line is, that if you don't take some new action in your life, the best advice in the world cannot help you.
There is a reason I suggest you register your bodyshop at www.collisionfinancialservices.com. Now. Today. At our website we explain, in detail, how to increase your collision center’s sales, increase your labor rate. That's what it takes. But above all, take action and register your shop at Collision Financial Services to ever make any real positive changes.
Most bodyshop owners go through their usual daily routine without putting anything new into action. If that is you, then you are facing a long, difficult career. Consisting of slogging day after day with dismal results and endless pressure to really improve business performance. Not to mention all the new SOP’s, process improvements, DRP reviews, KPI performance improvement plans and other forms of hell you will put yourself through.
The bottom line is, that if you're going to see my advice but do nothing with the advice and go back to your old routine, then C.F.S. cannot help you. However, if you're the kind of person who puts good advice into action, then do this right now: Register your bodyshop or collision center at www.collisionsenter.com immediately. Once you start using “in-house” installment loans, you'll experience the results you've always wanted.
Do it right now. Registering your bodyshop will take just a few minutes, and then start putting a new winning approach to use immediately.

Stop Compromising with Insurance Companies


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.
But.... HOW?
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.

Sell More and Grow - Flat Broke


That sounds ridiculous, doesn't it?

Well, I hate to break the news, but it's true. What most people fail to realize is that day after day, they're going out and selling more and growing poor.

The problem lies with that one word - SELL.
What does selling really mean?
Selling: Efforts to convince others they want or need your services despite the fact that they may not. The purchaser typically leaves the transaction with a strong feeling of being dirty and a need to take a shower.
Buying: Willingly acquiring for money something that wanted or needed. After, the purchaser generally leaves the transaction feeling happy and satisfied.
See the difference?
Very few bodyshops understand how to get vehicle owners to buy from them. Instead, they grind day after day, try to play the insurance DRP game, attempt to write compliant estimates, charge the “mythical” prevailing rate, hear objection after objection and no after no, never realizing that if they'd just start a true sales process from a position where the customer wants to buy, rather than trying to sell people, they'd make a lot more sales. With less time, less stress and be more profitable to boot.
Most collision centers owners and managers don't understand this concept, because of the years of conditioning insurance programs that many companies have put them through. And odds are, the vehicle owner does not have the cash to pay their $1000 deductible.
These are the reasons why so many are not as successful as they could and should be.
A problem with estimate callbacks, is that it puts your estimators in a selling situation right from the start. The most successful bodyshops and collision centers, are the ones who set up buying situations from the start. Before the vehicle owner ever leaves their shop and who don't annoy and push people away with annoying selling tactics.
So, if you want to know how to rapidly increase your sales and charge profitable labor rates the answer is simple: Stop selling to people, and begin creating a environment where vehicle owners are buying from you instead.The first place to begin is register your bodyshop or collision center at www.collisionfinancialservices.com and start offering “in-house” installment loans.
I suggest that you roll the amount of profitable labor rate differences and the C.F.S 6% fee into your customer’s C.F.S. no credit check loans. They will be glad to pay it! Who’d believe that getting a higher labor rate could be this easy? For more answers, such as how to determine your shop’s fair and profitable labor rates at no cost, and collect it, email us @:info@collisioncenterfinancialservices.com

The Art of Battling Giants

Tired of battling those big old Goliath-sized insurance company giants?
Sometimes things we always believed turn out to be wrong. Malcolm Gladwell,
who wrote the book, David and Goliath: Underdogs, Misfits, and the Art of Battling Giants says, “That’s true all the time.” There are things we have become convinced are true. That just aren’t. Like a Brontosaurus. In fact, a Brontosarus never walked the earth. It was a actually a Apatosaurus. More relevant today to collision repairers, there is no such thing as a “prevailing” rate. It’s a myth.
Malcolm Gladwell has spent some time recently on this topic. As I stated, he wrote an entire book about David and Goliath. Like me, you may have not always paid attention in Sunday School and still envision David versus Goliath as the story of a weak shepherd defeating a mighty warrior. However, it turns out that's not what the story is about at all. In the interest of stopping you from continuing to make bad business decisions, let's explore a corrected version of the story, and what it really means:
Goliath couldn't see well
While large, Goliath was almost powerless
David was ready, confident and deadly
Another lesson to learn is not the simple one, that when a powerful competitor takes on a smaller one, the smaller one might nevertheless win. The commonly accepted metaphor is, what person alive doesn’t have problems that are so huge, it’s like facing a Goliath and all you have is a sling-shot? Malcolm Gladwell states, Goliath was actually a sitting duck and giants are not as strong and powerful as they seem. Often they are over-confident, lumbering and slow to react. Sound like any insurance companies you have to deal with everyday? In another highly competitive arena, do think Microsoft is the only software company in the world? No! Lots of other software companies compete in that market very well. Collision centers and bodyshops while smaller, can be a very hungry, nimble opponent to our adversaries. If the bodyshop owners arm themselves with a new weapon to use against them. No not a sling-shot! Go to battle and win using, “in-house” installment loans managed through Collision Financial Services. Truthfully, we are losing because we as an industry, have gotten tired of the fight. Or worse, we’ve become lazy. We have become willing to mostly accept whatever insurance companies offer us. Instead, understand that the real keys to battle are sometimes obscured by our misconceptions. Beginning to perceive them correctly can amount to a Goliath-sized advantage. Did you know that odds are, most of your customers don’t have their $1000 deductible in savings? Use this fact to offer them a no credit check, “in-house” deductible loan with www.collisionfinancialservices.com Roll a fair and profitable labor rate differences and the C.F.S. 6% charge for handling the billing, statements into the customer’s loan. They will be glad to pay it!
Would you like to hear Malcolm Gladwell talking more about the unheard story of David & Goliath? Watch it here: https://youtu.be/ziGD7vQOwl8

What Do You Hate Most?


That's an easy question to answer. Change. It's the one thing all people tend to hate the most.

Change is the one thing in life most bitterly opposed by nearly all people.
However, opposing change is one of the leading causes of failure. Opposing change causes:
Lack of growth
Blind opposition to change, is a leading cause of failure. To succeed in the collision business you not only must be willing and adaptable to change, but you must have the foresight to anticipate when to change.
If you don't anticipate change, adapt to it, even embrace it, your bodyshop will be left behind, and will eventually fail.
Time to Change

Collision Centers and bodyshops must change rapidly. If your shop doesn't stay within one step of changing technology, adapt to new consumer buying habits and recognize new marketing approaches readily and quickly, you can't succeed.

sales. Twenty years ago, no one predicted that the bulk of our business and commerce would happen via DRP relationshops. Even as little as five years ago, few people anticipated the accelerated number of MSO’s now generating huge sales numbers. Yet, despite all that, most collision repair managers and owners are still doing what their predecessors did forty years ago, and beyond: Writing estimates, hoping to get the repair and making estimate call-backs.
Sure, it'll get you an repair appointment here and there. If you're very good at it, you might even make enough sales to make your sales and keep your job or shop open another month.
But you'll never, never attain really huge sales success. All that will happen is that you'll get fewer and fewer sales as time goes on and more and more people are directed to the preferred DRP relationshops.
So do this right now: Resolve to change forever. Accept once and for all that the time for change has come. And it's time to adapt to the new business world before time runs out for you!
If you want to explode your sales - if you're ready to kick the boring, negative, time-wasting activity of just writing estimates and watching a high percent of those potential customers drive out of your life, start using “in-house” installment plans. Register your bodyshop or collision center with Collision Financial Services @