Successful shops collect $62/hr—
and you can too!

We have interviewed some of the most successful body shops in the country and developed a set of rules that can result in a P&M rates above $62/paint hour. You too can see these results.

Here's How—

  1. Get a signed contract.
    The signed contract gives you the legal right to repair the vehicle. If the owner brings the vehicle in, then only the owner can authorize the repair, not the insurance company. Your customer is then the vehicle owner. The insurance company's obligation is to pay for the repair under the policy the insurance company has with the vehicle owner, which has nothing to do with you.
  2. Get an assignment of proceeds.
    This allows you to collect from the insurance company. The assignment of proceeds gives you the right to have the insurance company write the check to you and allows you to pursue the insurance company for the full repair costs. It also gives you standing in court should it become necessary.
  3. Don't talk to the adjuster until the job is done.
    Your contract is with the vehicle owner. Remember, the insurance company is just paying for the repair. Once they declare the vehicle repairable, they are out of the picture until they pay.
  4. Use PaintEx.
    PaintEx provides accurate costs and increased profits. PaintEx tracks the cost of all P&M inventory your shop uses, and for each invoice tracks the quantity of each item used. PaintEx produces an accurate invoice for all the paint & materials.
    The most successful body shops are increasing their pre-tax profits by a whopping 6.5% using PaintEx.
  5. Document the repair.
    You are the expert in the repair of vehicles. As the expert, you decide what parts and proceedures are necessary to correctly repair the vehicle. You have a right to recover all costs that go into the repair of the vehicle. Keep track of all items that can be assigned to the repair. Examples are towing, delivery charges for parts that go on this vehicle, environmental fees, etc.
    Print out the PaintEx Traveler and use it on the shop floor to track the P&M items needed for the repair.
  6. Never change an invoice total.
    It is important that the invoice be accurate. Don't ever delete an item or reduce the cost of an item on an invoice! The insurance companies want you to remove items and lower item costs so the repair looks less expensive so they can publish data showing repair costs are lower than they really are. This is bad for your bodyshop. It is important that the invoice total accurately reflect what it took to make the car whole again.
  7. Offer a discount to lower the price.
    A discount keeps the Invoice Total accurate. If you want to lower the price of the repair, offer a discount. After the Invoice Total, add a line titled Discount, then subtract the discount amount from the Invoice Total, and label the last line Balance Due. Discounting is a way of keeping the insurance adjuster happy and you will still be able to stand by the actual cost of repairing the car, the Invoice Total. For example, you can use the discount to encourage prompt payment of the Balance Due. They get the discount only if they pay the balance due in full within 24 hours.
  8. Keep a list of Open Claims.
    This will help reduce short pays. Short pays are a problem. Keep track of the insurance company, claim number, Balance Due. Send your Open Claims list to your state Commissioner of Insurance monthly. If your short claims gets large enough it will pay to hire an attorney and go to court. The most successful shops are recovering over $100,000 in short pays by going to court.

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Call Bob for more information or for phone sign up at 760-489-6600.