6 minute read
The Reign of Terror
EVANGELOS “LUCKY” PAPAGEORG
There have been many instances in the past where I have mentioned that the collision repair industry is in a state of evolution rather than revolution. Evolution is a mightily slow process, and the changes can be so slight that they can hardly be noticed by the untrained or less knowledgeable. By contrast, a revolution is one that can bring on rapid change but can also take time to take hold and muster support. In a revolution, however, you would have to try extremely hard not to acknowledge that something very powerful is taking place. I can make a very good case for the need of a revolution in our industry.
Since the Automobile Insurance Reform Act of 1988, the collision repair industry and those it serves have been abused and oppressed by a truly ruthless tyrant. Customers have been forced to take their vehicles where the insurers want them to go based solely on price. In many cases, training and quality have not been taken into consideration. Longtime customer relationships have been sacrificed, and a huge chasm has been created within our own industry. Insurers pit shops against each other under the guise of keeping insurance premiums in check for the insureds. All of us – shops, vehicle owners and, yes, even the insurers – know that this is unadulterated BULLS**T!
Insurance premium increases may have slowed initially but have not been held in check to any true degree over the past 30-plus years. By comparison, and without any real justifiable reason, the insurance reimbursement rates have been stagnant since 1988. All of this has led Massachusetts to be in 50th place (among 50 states) regarding Labor Rate reimbursement while being in the top five most expensive states to conduct business. Grounds for a revolution? I certainly think so!
We have been experiencing the systematic destruction of an industry at the expense of the vehicle owners here and across the country – but especially here! Remember, we are in last place! This is exactly why we have a workforce that is aging out faster than new technicians can be trained, let alone convinced to consider the collision repair industry as a profession where they cannot only be proud of what they produce but also earn enough to sustain themselves and their families. Where is the incentive to keep up with everchanging technology and repair procedures? Shop owners and technicians alike are expected to continue their training, buy new very expensive equipment and pay higher liability insurance premiums, etc. while netting less and less for having done so. Grounds for a revolution? I certainly think so!
I do see more and more shops and insureds beginning to push back against the tyrannical actions of insurers. They are no longer taking crumbs the insurers are offering without asking for justification or proof. Slowly, we are seeing the days of “because I said so” or “that’s all we have to pay” fall by the wayside. One way to expedite this process is to be informed yourself and to educate your customers. You need to make your customer wise to the tactics the insurer uses to pit them against you. You need to inform your customer that you are doing what is right for them. Nothing will bring a smile to your face quicker than when a vehicle owner calls you back and says, “They said exactly what you said they would almost word for word.” This is the moment when you will know that you have created an ally in the battle of getting that vehicle owner what they were owed. It is not that insurers will just give in, but it sure will weaken their position. It will put that company on the defensive instead of the other way around. As the saying goes, the best defense is a good offense. The makings of a revolution? I certainly think so!
Many shops out there think they have no choice in this matter, that it is useless to put up a resistance or that we need to go along to get along. I would argue that all you need to do is to look around you and see how well this philosophy has served the collision repair industry to date. Sure, initially your “partners” may have treated you a little bit better to use you as a shining example to keep others in line. This may have helped to reduce your cycle time, but ultimately at what cost to you and your customer? As with any history, if we do not learn from the past, we are doomed to repeat it. All too often, we have seen how insurers pit us against each other – not as business competitors, which would be normal, but as entities trying to survive on the meager scraps they “give” us to fight over without regard for the insured.
How often have you had to listen to an insurance appraiser say, “I’ll give you a couple of hours on that dent”? How about, “I’ll give you the procedure or R&I”? I would agree to the concept of “giving” if you did not actually have to do the repair or process. Now that would truly be a “gift”! More and more shops are looking beyond the “gift” and understanding how insulting the notion is. To add insult to injury, we are also supposed to be grateful for their generosity. The resentment is building and becoming too much to bear. Again, I ask, the makings for a revolution? I certainly think so!
AASP/MA is here to continue to give you the tools to rise up and stop the tyranny. We will continue to provide you with the information and resources you need so that you can be a better advocate for your customer and your shop. AASP/MA advocates for you at meetings with our
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