Run your shop like a business and not a charity

Don't be afraid of turning away unprofitable repairs


Don't be afraid of turning away unprofitable repairs.
Learn ways of increasing gross profits on repair that aren't making you any money.
You're entitled to make a profit on everything your shop produces or sells.

Giving discount on parts is giving away net profit. Any contract you've signed that stipulates discounts on parts is a contract that steals cash directly from your pocket.
Giving discount on paint and non-paint products is giving away net profit.chessAll invoices are private internal documents and the insurance company has no legal right to see what your costs are unless you have a signed approved repair body shop contract stating that you must make them available.
Develop strategies to combat the insurers insistence on seeing these documents.

You cannot discount labour and make up the difference in volume. This is the biggest lie and scam perpetrated by the insurance industry.
Your shop can only produce a fixed number of hours a week, unless you hire more people, force your existing staff to work longer hours or increase your efficiency significantly. Once you have produced this limit any additional work only becomes backlog.
Repairs have to happen in real time.
Your Cost doing Business don't decrease if your volume increases like it would if you were manufacturing some tangible product and just had to run your machine longer.
Most body shops don't spend anything in marketing, so your marketing costs don't decrease by increased ....(insurance) volume.
Always write your own estimate and be certain it is accurate and you bill your customer based on that estimate.

  • Be honest and ethical and avoid possible legal problems caused by insurance company cost shifting by billing off of an accurate estimate.
  • Write your estimate at your labour rates and let the insurance appraiser break the law by cost shifting if needed to reach your bottom line.
  • Without writing your own estimate you have no idea how much it will or should cost to repair a vehicle. Working off the insurance estimate is just plain lazy.
  • Avoid more legal troubles by billing the customer in pounds and not hours. Charging 75 for one hour's worth of work is more ethical than charging 40 per hour for two hours of labour when the repair only takes an hour. Though it is the most common practice, some shop owners have lost in court for overcharging customers because of this. Consider yourself a "Car Doctor" and charge like they do. When's the last time you heard a doctor discuss his hourly rates?

Don't give in to the insurers
If you have a defeatist attitude, if you feel like and believe that you are powerless against the insurance industry, you have created your very own self-fulfilling prophecy. You are guaranteeing your defeat.

You are helping the insurers take over your business and the entire repair industry.

If you are living with this attitude do the rest of us a favour and get the hell out of the business.

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Have you checked your car insurance lately?