EDUCATING SHOPS ON WHY THE LABOR RATE SURVEY MATTERS

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.

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

Knowing your numbers helps you - and the industry!

BY JORDAN HENDLER

and invest in the equipment and training needed to be a leader in their market.

WMABA wants to focus on the subject of rates for the betterment of the entire industry. It’s an obstacle for many repairers – members and non-members alike – and we want to see all gain access to this valuable information.

Spend the time to learn, and you will get it back exponentially!

Go sign up, and feel free to ask us any questions along the way. H&D

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective.

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EDITOR’S MESSAGE

THE FUN FACTOR

Why are you in this industry?

While I can’t speak for everyone reading this magazine, I’m pretty confident I can answer the above question for 99 percent of you. At the end of the day – after every argument with an insurer, every struggle to keep up with training and equipment and every other thing that stresses you out during the workday – you got into this business because you love cars. Remember the first time you saw a racecar or a custom paint job and thought, “That’s awesome!”? How about the first time you brought a car back to pre-accident condition for a customer? Those were great times, weren’t they?

If the daily grind of this profession (along with the added pressures of COVID-19) has you feeling like those moments are in the rearview mirror these days, I assure you that there’s still plenty of fun to be had – and there are some amazing things right around the corner. For example, think about electric vehicles (EVs). They’ve been showing up on our pages a lot in recent times, and they’re definitely not going anywhere. Yes, there are going to be major training and equipment challenges as a result, but just think about how cool this whole trend is. The same goes for ADAS, autonomous vehicles and the rest of what I-CAR calls the “technical tsunami.” These things can be stressful in terms of getting skillsets and facilities up to speed, but I know there are plenty of you who are excited to get under the hoods of these things and explore what makes them tick. Think about the fact that a self-driving car is just a few milestones away from being an everyday thing. When we strip away the talk of how that could impact a shop’s bottom line and repair capabilities, we see how incredible that advancement truly is. Who could have imagined 30 years ago that we’d be talking about these things in Hammer & Dolly today?

This is a time of worry, but these are also days of wonder. Enjoy the ride as much as you can.

H&D

WMABA OFFICERS

PRESIDENT

VICE PRESIDENT

Torchy Chandler

torchy.chandler@gmail.com 410-309-2242

Bill Hawkins

hawkinswilliamjr@gmail.com 510-915-2283

SECRETARY Phil Rice

phil@ricewoods.com 540-846-6617

IMMEDIATE PAST PRESIDENT Mark Schaech, Jr.

markschaech@gmail.com 410-358-5155

BOARD OF DIRECTORS

Don Beaver (donbeaver3551@gmail.com) 443-235-6668 Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Kris Burton (kris@Rosslynautobody.com) 703-820-1800 Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928 Ben Gibson (bgibson@richmondmarinecenter.com) 804-355-8151 Steven Krieps (srkrieps@live.com) 304-755-1146 Danny Szarka (danny@dynamiccollisionservices.com) 410-500-9200

ADMINISTRATION

EXECUTIVE DIRECTOR

Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649

WMABA CORPORATE OFFICE

P.O. Box 3157 • Mechanicsville, VA 23116

STAFF

PUBLISHER Thomas Greco

thomas@grecopublishing.com

SALES DIRECTOR Alicia Figurelli

alicia@grecopublishing.com

EDITORIAL DIRECTOR Joel Gausten

joel@grecopublishing.com

EDITORIAL/CREATIVE Alana Bonillo

COORDINATOR alana@grecopublishing.com

OFFICE MANAGER Donna Greco

donna@grecopublishing.com

PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963

Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2021 Thomas Greco Publishing, Inc.

Stock Images courtesy of istockphoto.com.

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