EXECUTIVE DIRECTOR’S
MESSAGE
EDUCATING SHOPS ON WHY THE LABOR RATE SURVEY MATTERS Recently, I talked to you about how hard it was to get the actual cash posted rates for our Labor Rate Survey revealed in this issue. We’ve learned more and more; repairers are up to their eyeballs with pandemic issues, and adding the layer of knowing how to set posted rates is just too much to bear. I’m sorry to say this so pointedly, but the rate is the basis of most of the business’ gross sales. It is the most important segment that needs regular attention. So, we have come to you with two options to learn more about this critical endeavor.
6
April 2021
While encouraging you to sign up for our two upcoming WMABA Collision Professional Repairer Education Program (Collision P.R.E.P.) classes (page 14) that are directly educating on this topic, I will say that even if you don’t attend the live versions, you need to get the courses afterwards and see where you are with the materials and information shared. This is imperative if you don’t already have identified resources to conduct the internal study. It’s hard to understand why this is such a problematic area in collision repair
businesses – until we factor in all of the other things you have to do. Many managers or owners are not highly educated in the ways of accounting and cost analysis. Therefore, it becomes a low priority as long as there’s money in the bank to “cover payroll on Friday.” I hear that a lot. Unfortunately, this will likely put the shop in the position to have to take out loans for upgrades, new equipment, certification fees or technician training. When that debt stacks up, it becomes a problem to keep up with and usually the point at which a realization happens: “We’re not making enough money to improve.” Then, the decision whether or not to grow becomes so much harder and a source of great stress. The most successful shops in our area – and, frankly, the whole country – know everything about their numbers. They don’t look outward to determine rates as much as they understand the costs of doing business for each category they have rates for. Associated costs for personnel in the office – even including technician downtime for training, marketing, equipment maintenance/ upgrades and the multitude of other factors – are accounted for. This is how they continue to succeed and excel – especially in the certified repair segment. They’ve got the cash flow to be able to jump into new programs
