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4 April 2022
New England Automotive Report
April 2022 • Volume 20, No. 4
DEPARTMENTS PRESIDENT'S MESSAGE 6 | Where Were You? by Kevin Gallerani
CONTENTS COVER STORY
EXECUTIVE DIRECTOR’S MESSAGE 8 | Fact from Fiction by Evangelos “Lucky” Papageorg LOCAL NEWS 12 | Mapping It Out: AASP/MA’s Journey to Educate Shops, Consumers and Legislators by Chasidy Rae Sisk
VENDOR AFFINITY PROGRAM MEMBER SPOTLIGHT 20 | Moonraker SEO by Alana Quartuccio Bonillo
24 | Does the Consumer Know What You’re Worth?
by Chasidy Rae Sisk &
Alana Quartuccio Bonillo
FEATURE
LEGAL PERSPECTIVE 34 | The Benefits of Documentation by James A Castleman, Esq.
ALSO THIS ISSUE 7 | AASP/MA MEMBER APPLICATION 21 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS
28 | Collision Instructors Weigh In on the Tech Shortage That Never Ends by Chasidy Rae Sisk
New England Automotive Report
April 2022 5
PRESIDENT’S MESSAGE
Where Were You? KEVIN GALLERANI
Although nearly 60 shops signed up to give testimony at the Labor Rate Special Commision’s (LRSC) first hearing, I couldn’t help but wonder why there weren’t 500 repairers in attendance to share our industry’s woes and demand something change…Where were the rest of you? It’s possible that you didn’t take time to participate and strengthen our collective voice because you enjoy being compensated $40 per hour by insurers. Perhaps you think that amount is sufficient to cover the cost of wages, benefits, training and office employees. Maybe you agree with insurers that shops collect plenty of money and don’t need a raise – because that’s what the insurance industry’s representatives told the LRSC! Christopher Stark (Massachusetts Insurance Federation) says the market is setting our labor reimbursement rates based on supply and demand; he claims there are too many shops and not enough vehicles that require repairs. One of the insurer representatives sitting on the LRSC asked why shops should get “a raise” when other shops repair vehicles for rental car companies at a lower rate. I hope that’s not true, but even if it is, why should the decision that a couple shops make affect the rest of us? Those of us who participated in the LRSC hearing made a BIG impact, but how much more effective could it have been if more shops had shared their stories? If you weren’t there, it’s time
STAFF
AASP/MA EXECUTIVE COMMITTEE
PUBLISHER
President Kevin Gallerani
Thomas Greco | thomas@grecopublishing.com
SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com
EDITORIAL/CREATIVE COORDINATOR Alana Quartuccio Bonillo | alana@grecopublishing.com
OFFICE MANAGER Donna Greco | donna@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com
MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com
PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 www.grecopublishing.com
continued on pg. 37
Vice President Matthew Ciaschini
Treasurer Dana Snowdale
Secretary Gary Cloutier
AASP/MA STATEWIDE DIRECTORS Director At-Large Adam Ioakim
AASP/MA DIRECTORS
Legislative Director At-Large Tom Ricci
ZONE 1 Mike Penacho Dan Wenzel John Studer
ZONE 2 Ray Belsito Joshua Fuller Brenda Lacaire
Affiliate Director Rick Fleming
Affiliate Director Bill Spellane
ZONE 3 Andrew Potter Brian Stone
AASP/MA ADMINISTRATIVE OFFICE AASP/MA Executive Director Evangelos “Lucky” Papageorg
New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2022 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
6 April 2022
to get involved; unless you’re convinced that all your time, energy and investments are only worth $40 an hour, it’s time to get involved…It’s time to DO something! There are tons of ways to take action to correct the current state of our industry – providing testimony, contacting your legislators or even simply attending an association meeting so you know what’s going on. The more of us who stand up for the industry’s future together, the better that future will be. The LRSC’s second hearing will be occurring in the near future. Will you register to provide testimony? If you can’t attend the hearing, you have the option of submitting written testimony to the LRSC through danielle.littmann@mahouse.gov. Will you take five minutes to send a simple email? Labor reimbursement rate suppression in Massachusetts needs to stop, and AASP/MA consistently tries to facilitate change through legislative action, such as House Bill 1111. I understand that none of us enjoy asking for help, nor do we want the government dictating how much we can charge. I hate asking for help, and I surely don’t want the government telling me what to charge. But as it stands now, insurers have too much control over our bank accounts, so we need legislation NOW that allows us to run our own businesses at our own prices. Will you contact your legislators and urge them to support House Bill 1111?
New England Automotive Report
AASP/MA Administrative Assistant Alana Bonillo
WWW.AASPMA.ORG
Collision Director At-Large Rob DelGallo ZONE 4 Kevin Kyes Jim Marshall Paul Tuscano Affiliate Directors Frank Patterson Jeff White Don Dowling P. O. Box 850210 Braintree, MA 02185 617-574-0741
AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741 Fax: 973-235-1963 Email: admin@aaspma.org
Membership Application 2022-2023
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You! BUSINESS INFORMATION Massachusetts Shop Registration # __________________
Total number of Staff (Techs, office, Mgrs)________
Company’s Official Name: ________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: (______)-________-___________ Fax: (______)-________-___________ DUES STRUCTURE. Collision Shop Annual Dues: $495 / 12 Months* PRIMARY BUSINESS CONTACT Name: _______________________________________________________________________________________________________________ Email: _______________________________________________________________________________________________________________
YES � Please list my business as an AASP/MA member in good standing on the AASP/MA website for consumers to consider using for the collision repairs and assistance with the claims process. I understand this is a member benefit (_________ initials Date ___/____/2022) Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � Grant writing/training � Google presence optimization � All five PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) CC #: ______________________________________________________________________
OR
EXP: ________/___________ CID: _________________
Billing Address: ______________________________________________________________________________________________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues 2022-2023 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
REV 12/21 New England Automotive Report
April 2022 7
EXECUTIVE DIRECTOR’S MESSAGE
Fact from Fiction EVANGELOS “LUCKY” PAPAGEORG
Over the years, it has become painfully evident that we in the collision repair industry are much like our own customers. Our customers, for the most part, believe if the insurance company says it is so, then it must be so. No matter how much we, consumers and shops alike, may sense or even know that there is something wrong with what we have been told by an insurer, we tend to believe them and doubt our own knowledge, common sense and convictions. We really need to change that perception. The insurer being considered the authority in the repair business could not be further from the truth. We not only need to convince ourselves first and foremost, but we must also convince our customers, and above all else, we must convince our legislators that insurers are not the authority in the collision repair business. For some reason, there is a perception that Massachusetts is different from every other state in the country. In some instances, that is true; however, in most cases, nothing could be further from the truth. Case in point: What is the difference between any repair procedure that must be performed to restore a collision damaged vehicle to pre-loss condition here in Massachusetts versus any other part of the country? Are the manufacturer’s recommended and required procedures or the I-CAR, Tec-Cor and paint manufacturer procedures any different whether a vehicle is being repaired in Massachusetts, Connecticut, New Hampshire, California or any other place in the country? No, they are not. Are the estimating databases different depending on where you are repairing the vehicle? Does a line of paint product vary from state to state, or is it dependent on the type of vehicle it is being applied to? Do you think that flat rate technicians in Connecticut, New York or all the other states with a higher labor reimbursement rate work fewer hours? The answer is a resounding “NO.” So, why is it that we in the collision repair industry here in Massachusetts are convinced that we get paid any more or less for procedures than other areas of the country? That “myth” has been developed to make the less knowledgeable shops believe that they are the “ONLY ONES.” Do you really believe that in states where they are paid a significantly higher labor reimbursement rate per hour that they do not get paid for all the required procedures to repair a vehicle safely and properly? Do you really believe that if we do prevail and achieve a higher labor reimbursement amount that there will be fewer vehicles to repair? Do you think that in states with a much higher labor reimbursement rate that shop floors are empty of vehicles in need of collision repair? I have a challenge for you: Go into your shop right now, and look around at the vehicles that are currently in the repair process. Look at each estimate for each of those vehicles and add, let’s say,
8 April 2022
New England Automotive Report
$420 to the bottom line of the repair estimate. Now, how many of those cars became “paper totals”? I would hazard a guess that not one of them did. Now, take that same $420 dollars times on each vehicle and picture what that would equal out at the end of a week. Imagine being able to pay each of your technicians more in line with what they are worth. Imagine being able to invest in and upgrade some of your equipment. Now, take it one step further… What if you added $840 to the bottom line of the estimate? There goes one vehicle to the salvage yard, maybe. Is saving that one vehicle worth the $840 multiplied by the remaining number of cars you are still repairing? I THINK NOT! So, do you still believe the “myth” that if you get paid a higher reimbursement rate that you will not have any vehicles to work on? It is exactly that – a “myth.” Keep in mind the fact that Massachusetts is currently rated the lowest state in the country when it comes to Labor Rate reimbursement, yet when it comes to running a business, we are in the top five most expensive states. We live in an affluent state when it comes to the overall value of vehicles. That fact alone would mean a minimal number of vehicles would be affected by a raise in the labor reimbursement rate. By the way, you just proved it when you went out and walked around your shop.
The insurer being considered the authority in the repair business could not be further from the truth... STOP BELIEVING THE MYTH! Stop being led to believe that you will make less money per repair because the dent that is currently on the estimate at 4 hours - that you hope the technician will complete in two hours - will only get you two hours from the insurance appraiser at a higher rate in the future. Again, do the math, look at any one of your vehicles. Take the total number of hours on the estimate that are “book” hours, which you are hard pressed to have your technician beat, and multiply them by an arbitrary figure, let’s say $67/hour. Now, take the “negotiated” time on that same repair estimate, divide it by two, and multiply that by $67. Next, add the “book” continued on pg. 16
New England Automotive Report
April 2022 9
10 April 2022
New England Automotive Report
New England Automotive Report
April 2022 11
[LOCAL] NEWS
by Chasidy Rae Sisk
Mapping It Out: AASP/MA’s Journey to Educate Shops, Consumers and Legislators How does someone with no clue reach the point of becoming a well-informed individual? By traveling down the path of education, of course! As an organization devoted to improving the collision industry for members and non-members alike, AASP/MA realizes that many avenues must be explored to reach that destination, so the association has triangulated the map to successfully reach its goals of providing shops with the knowledge needed to run their businesses, educating consumers and lobbying legislators to support the industry’s initiatives. Following its first general membership meeting of 2022, held just a few days ago (tune into the May edition of New England Automotive Report for a full recap), members are already looking forward to their next meeting which will be held in June. Details will be available soon, but like all AASP/MA meetings, it’s sure to serve as each participating shop’s GPS on the journey to ensuring safe, reliable repairs. Obviously, that voyage can be quite a long one, so the association is also developing a series of legal seminars in
12 April 2022
New England Automotive Report
partnership with Carlin Phillips and Andrew Garcia of Phillips Garcia Law (Dartmouth). “We’re hoping to put together at least 12 legal seminars as an ongoing series that will run the gambit from ‘what do you do when the customer first comes in?’ through the entire process of succession,” explains AASP/MA Executive Director Lucky Papageorg. “We’re also working with Sandra Kearney from Human Power Solutions (Vendor Affinity Program Silver level sponsor) to develop a way for members to apply for grants to fund their enrollment in this training initiative.” In order to cover the full grid, AASP/MA also recognizes that a well-informed public is the key to many of its endeavors, so the association will soon be taking its educational programming to a whole new level by starting a TV show! The average consumer has no clue about the collision repair industry - and they don’t know what they don’t know. (For evidence, check out this month’s feature on page 28.) continued on pg. 14
New England Automotive Report
April 2022 13
[LOCAL] NEWS continued from pg. 12 Tentatively titled Auto Sense, the shop will mimic the “Everything Auto with Mike Penacho” radio show on WSAR. Being recorded by Braintree’s BCAM TV, the show will air on the local public access channel; however, it will also be distributed to an additional 351 public access stations that may elect to broadcast it to their local communities as well, according to Papageorg who will host the show. “The TV show is going to cover everything from insurance to ADAS, from repair procedures to legislative initiatives, as we attempt to educate the motoring public. It will provide an opportunity to do in-shop recordings and demonstrate the extent of equipment shops must invest in to help consumers understand everything we undertake to ensure the safe repair of their vehicle.” Exploring previously uncharted territory, AASP/MA also plans to enhance its legislative efforts with a campaign to educate consumers and legislators about the importance of House Bill 1111, an act to establish a minimum reimbursement for insurance claims which, if passed, will guarantee consumers’ choice of repair shop won’t be limited to the labor reimbursement amount an insurer is willing to pay for their vehicle’s repair. “We’re looking at different ways to strategically get the word out to legislators and consumers about the issues our industry
14 April 2022
New England Automotive Report
faces,” Papageorg promises. “One of those methods will include a postcard campaign where we’ll provide the means for body shops, vendors and consumers to request legislators’ support for HB 1111. AASP/MA members - and non-members - can contact our office to obtain copies and support this cause.” Massachusetts body shops are also encouraged to support the need for fair reimbursement rates by participating in future Labor Rate Special Commission hearings. Shops that cannot attend these hearings are urged to submit written testimony to the LRSC via email to danielle.littmann@mahouse.gov. All are encouraged to look for information on legislative hearings or upcoming events via their email, notices in the bimonthly members-only newsletter Damage Report and in New England Automotive Report each month. Those interested in joining the association can sign up via the application found on page 7 or contact the association at (617) 574-0741. AASP/MA looks forward to helping repairers navigate their way to a better future for the collision industry.
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EXECUTIVE DIRECTOR’S MESSAGE continued from pg. 8 time’s dollar figure to the “negotiated” time’s dollar figure. Now, tell me if that figure totaled out the vehicle. Would you seriously rather have twice the “negotiated” labor hours at $40/hour or the hour for an hour “negotiated” repair time at $67? Here is an example of what I mean: The total number of “book” hours on an estimate 23.5 X $67 = $1,574.50 + “negotiated” panel repair time of three X $67 = $201 for a total of $1,775.50, versus 29.5 (allowing for twice the repair time given at the higher labor rate) X $40 =$1,180 on the sample estimate. That is a total difference of $595.50. In all likelihood, the sample vehicle is still very much repairable! SO, STOP BELIEVING THE MYTH! This is NOT magic! It is NOT “funny” money or worse yet, “funny time!” IT IS VERY REAL MONEY! IT IS A REAL MYTH BUSTER! This is the very reason every insurance appraiser will let you think you got one over on them. Sadly, you think you got them to agree to twice the time it’s going to take your tech to repair the panel. Believe me when I tell you that the appraiser, their supervisor and the insurance company are laughing all the way to the bank. I want to be very clear; the dollar amount I chose is not for the purpose of setting a rate. I chose it because $67 is the
16 April 2022
New England Automotive Report
national average of posted survey rates submitted by collision shops and compiled by National AutoBody Research. If you have not previously taken the survey, please do so by visiting nationalautobodyresearch.com, scrolling to the bottom of the page and clicking “take free labor rate survey.” If you have taken the survey, please consider updating it now. The cost of doing business has risen at least seven percent in the last year. Do your posted Labor Rates reflect your added costs of running a business this year? Even if you elect to keep the same rate as previously answered, enter them again. This will update the survey date to show current data. Some would argue that the average labor reimbursement rate should be even higher. I am one of those who would make that argument. For the investment in time and equipment, the training and the expertise our gifted technicians must have to do what they do to restore a collision mangled vehicle and for the shop owners who accept the liability, we certainly deserve better! Let’s all become “myth busters” and get our customers and legislators to see the reality.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org.
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18 April 2022
New England Automotive Report
New England Automotive Report
April 2022 19
[VENDOR AFFINITY PROGRAM] MEMBER SPOTLIGHT
Chris Morin has made it his life’s work to see to it that auto body shops are positioned to reach the top! Four years ago, Chris launched Moonraker SEO, a company predominantly focused on helping businesses increase their online presence and bringing more customers to their doorsteps. It’s done so by way of search engine optimization (SEO), which increases a business’s Google ranking. Better ranking leads to more clicks; more clicks leads to more business. Moonraker SEO specializes in working with automotive repair and collision repair shops, as well as dealerships. Chris’ background in operations and sales indirectly led him to start his own venture. He started out working closely with his father in his family’s manufacturing facility doing sales, a position he enjoyed as it gave him the opportunity to travel – one of his biggest passions. But switching roles from sales to operations put an end to his traveling at the company. Soon after, he found himself re-exploring his career, and he began taking on some side hustles in the areas of digital marketing and social media management. His first paid side gig was managing a viral giveaway contest for a chain of seven restaurants in Connecticut. Next thing he knew, he had the client on retainer, and he was in business for himself: Moonraker SEO was born. The main focus of Chris’ company is SEO, although he still dabbles in web design. Over the years, he moved away from social media management because he’s discovered that business growth really only comes from SEO. “SEO is over 10 times more effective than social media even on your best day,” reveals Chris. “People do not go to social media to find information on your services; they go to Instagram and Facebook to look at pictures of cats. “When people search Google for auto body businesses in your area, you need to show up on top of the list,” adds Chris. “When you do, that’s when all the fun happens. If 1,000 people search, and you are at the top of the list, you will get 300 of those clicks. It’s easy to see how that visibility turns into business. It’s the simplest and most effective way to utilize a company’s marketing budget to get results.” Moonraker SEO also offers clients the opportunity to develop consumer-driven paid ad campaigns. Chris works hand in hand with his agency partner, Mike Ensor of Advertising Report Card who has experience managing paid ads, to offer this service to clients. “Mike is able to pull an audit of a business’s sales and marketing channels to see what they can be doing better. So, I
by Alana Quartuccio Bonillo
thought, if he is able to find the reason why other peoples’ campaigns aren’t as optimized as they could be, then I want him running my stuff.” Chris’ love for cars naturally led him to the auto body industry, and working to bring results to collision repair shops through SEO is the company’s main area Chris Morin of interest. Full Tilt Auto Body of West Hatfield is one of Chris’ many auto body shop clients. Through the relationship with shop owner Matt Ciaschini, Chris learned more about AASP/MA and its mission, especially on the legislative front. His passion for helping body shops paired well with the Alliance’s mission, and Moonraker SEO is now a Bronze level Vendor Affinity Program sponsor. “I believe strongly in the legislation AASP/MA is trying to push,” he says of HB 1111, an act to establish a minimum reimbursement rate to insurance claimants. “I was surprised to learn how low the hourly rates are for shops. It made sense for me to get involved on a deeper level. I want to help the association push forward. If shops can get paid at a reasonable rate for their work, it will be beneficial for my clients and all body shops in the state. The more money shops can earn, the better they can pay their employees, and that results in safer driving conditions for all.” Chris so wholeheartedly believes in the cause that, in addition to being a VAP Bronze level sponsor, he is committed to supporting AASP-MA through an additional donation of 10 percent of revenue collected for any member shop who comes on board to work with Moonraker SEO. “I am confident in our programs and what we can do, and I have no question that if a company signs up to work with us, they will have results.” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
20 April 2022
New England Automotive Report
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Thanks to our VAP Members for their continued support during this pandemic crisis.
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[COVER] STORY
by Chasidy Rae Sisk & Alana Quartuccio Bonillo
Does the Consumer Know What You’re Worth? Auto body shops don’t have it easy. Keeping up with changing technology, trying to get through the volume of work with limited staff and contending with insurers consume most days, but those challenges are worth it for many repairers who take pride in what they do: Protect consumers by safely and properly restoring their vehicles to pre-accident condition. Your customers appreciate what you do, especially when you take the time to educate them, but do they really understand all that’s involved with repairing a vehicle and running a shop? Do they know how heavily shops invest their time, energy and funds into training, tools and equipment? Are they capable of “getting it?” Do they even care? New England Automotive Report decided to try our hand at “educating the consumer” to find out if they actually know what you’re worth. Our 10 consumers from New England states represent various age groups and careers, and they are all unaffiliated and unfamiliar with the collision repair industry; most indicated that their knowledge was limited to one or two interactions they’d previously had with body shops after collisions. We began by assessing their current knowledge on three topics: the length of time needed to learn the trade, the amount shops invest in tools, equipment and training and the all-important question of Labor Rate. After obtaining those responses, we provided a two-minute lesson on the industry and asked them to re-evaluate their original thoughts. Let’s find out what they had to say! One recurring trend immediately emerged during these interviews, namely that consumers rarely think about the collision repair industry – until they’re in an accident and need a shop’s services. Common expressions included “I never thought about it before,” “I have no idea” and “No clue.” A freelance writer/editor from Waltham quipped, “I know a lot of details about many things, but this isn’t one of them!” But what the average consumer thinks they know about this industry varies drastically. In discussing the amount of training needed to acquire the skills to repair vehicles, responses ranged from “not much” to a guess of seven years. “Well, I believe they should go through training, but how long do I think they’re actually trained?” a housekeeper from Montpelier, VT asked. “It’s probably along the lines of ‘here’s where everything is at… ready, set, go!’” Several participants suggested half a year seems like a reasonable amount of time to learn the trade. “If he’s doing it every day, I’d guess a minimum of six months,” guessed an internet provider technician from Boston. “If not, training probably takes closer to a year.” “Six months to a year,” agreed the Waltham freelance writer/editor. “At least two years” was contributed by a personal concierge from Ashland who added, “Cars are all digital now. They used to be about parts and just putting them in, but now it’s all computerized, so I imagine it must be more challenging.” “I’d think they need a two-year program to get certified,” offered a quality control (QC) specialist in the mortgage industry (Dover, NH). “Maybe four years if they want to be a master technician.” 24 April 2022
New England Automotive Report
A childcare provider in Salem gave the question a little extra consideration: “Overall, I think it takes about three or four years of active handson learning with plenty of bookwork to learn that skill. I imagine one has to be able to locate and diagnose problems and issues that may or may not be visible. Listening is a big part of observing, and for diagnostic purposes alone, it probably takes additional time to perfect that skill.” Additional guesses included three months, “roughly 1,000 hours” and “possibly five to seven years, depending on the skill level they’re trying to acquire.” Most consumers acknowledged the need for shops to invest annually in tools, equipment and training with estimates running as high as a quarter million dollars. “Somewhere around $25,000-$50,000 annually, depending on the size of the shop and quality of the machinery,” the Salem childcare provider surmised. “Once they are open, I’d say an annual equipment cost of $50,000 seems reasonable,” an occupational therapist from Braintree indicated. “Maybe $50,000-$75,000?” proposed a college professor from Bridgewater. “It’s probably in the thousands because I know that stuff isn’t cheap.” “They would need a lot of stuff like sanders, paint and tools, so it’s hard to say,” hedged the personal concierge, offering a guess of $150,000. “It could vary, but if it’s a small shop of four people, I’d say $100,000,” contributed a Boston construction supply manager. “I have no idea,” admitted the freelance writer/editor. “I’m sure it’s a lot though. They have multiple employees, overhead, etc. I’d have a hard time thinking it’d be less than $50,000.” “With tools and stuff, they’ve got to be spending at least $100,000,” the Boston internet technician began, adding, “Actually, thinking of all the things they need, such as the garage, sprayers and tools to mind it, that may be shortchanging them. It’s probably more like $250,000.” The Vermont housekeeper was the sole dissenter: “Hmmm. Well, it’s all repetitive work, so once they buy the tools, they shouldn’t have to buy them again. I don’t know the cost of tools or equipment so I don’t really have an answer, but I don’t think it’s much. I mean, it shouldn’t be.” Questions about the Labor Rate that body shops charge elicited a wide range of guesses ranging from $15 to $250 with an average of $97. “A little over minimum wage, so they can pay employees and afford their business expenses…I guess around $15 an hour,” the Vermont housekeeper provided the lowest estimate. “Since they need to pay for overhead and wages and still make a profit, I’d guess $65,” the QC specialist offered an opinion. “I have no idea,” the freelance writer/editor disclosed. “I’m not even sure what I get charged regularly, so I’m guessing it must be at least $75 an hour these days. Auto body work is just one of those things…I don’t really shop around or negotiate; I just have to pay for it when it’s needed.” “It’s quite involved between the labor and what they are fixing, so
maybe $75 an hour,” suggested the construction supply manager. “That probably depends on the skill level and amount of years each person has,” the college professor considered the question. “But really, I know nothing about cars; I have complete faith in the people who work on my car, so I assume it takes $100-150 if you’re a master craftsman, but maybe just $75 when you’re first starting out. I’m not entirely certain, but it may also depend on the type of car because I can imagine some models may be more labor-intensive, so it makes sense if they cost more money.” The internet technician shared a heartening opinion: “I know their time is valuable, so I’m going to assume it’s in the ballpark of $200 an hour. Actually, now that I’m thinking about it, if that’s covering overhead and a solid guy making $30-50 hourly, depending on how good he is, plus rent and materials, $200 is probably a low figure. Those guys have got to eat too, so maybe a minimum of $250.” “I have my own business, so they probably get around $90-120,” the personal concierge said. “I imagine for auto body businesses, that rate includes parts, office staff, marketing and the people to do the work.” After consumers provided their initial responses, they were given a short “training session” on collision repair: Vehicles are typically the second largest investment people make, and these days, cars are essentially supercomputers on wheels that can kill the driver, occupants and others on the road if repaired improperly. In addition to at least two years of formal education, technicians participate in ongoing training to keep up with advancing technology and manufacturer requirements, and they provide their own personal tools which can easily accumulate in excess of $100,000. Changing technology also requires shops
to constantly invest in tools and equipment, plus shops that participate in various OEM-certification programs may be required to purchase specific items to repair that manufacturer’s vehicles. Typical startup costs for a small shop run around half a million dollars, and when we talk about Labor Rate, it’s important to remember that this is a business with overhead expenses such as rent, utilities, insurance, taxes… in addition to employee wages and benefits. As a point of comparison, the national average for lawn mower repair is $90/hour, and auto repair rates on the mechanical side typically range from $85-130. How did that “education” influence consumers’ initial thoughts? “It doesn’t really change because this isn’t something I think really hard about,” the freelance writer/editor acknowledged. “I’d probably go to a local shop and see what they can do. It’s not really a bill I’m going to argue over. If they tell me it’s double what I expected, I’m still going to get my car repaired.” “They should obviously be charging a lot more,” said the construction supply manager of his original $75 guess. “At a minimum, I’d say double it.” “With all that overhead, I can understand why they’d charge more than my estimate, and I wouldn’t be surprised at all if $150/hour was a huge lowball,” stated the college professor. “The initial investment they have to put into the shop is a crazy amount, and it sounds like there’s a lot of ongoing investment for technology changes, not to mention replacing things that break or are outdated.” “Wow! That impacts my viewpoint drastically,” shared the childcare provider who originally guessed $50-100. “I was completely unaware of the high price value for personal tools. Repair quotes normally cause the average person a great deal of anxiety and stress, due to the amount charged, but that amount actually makes so much more sense now that
continued on pg. 26
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[COVER] STORY continued from pg. 25 I’ve gotten this information. I feel that, given all the expenses, time for education and cost of tools, it absolutely justifies any higher charges.” “Depending on the type of service they’re providing and the difficulty of the repair, they’re probably right on the money charging up to $130,” indicated the QC specialist. Although the original guess from a hotel manager in New Haven, CT was $110 an hour, she doubled down on that guess after hearing about the industry’s investments. “I didn’t realize how much equipment costs so that guess seems super low. Maybe more like $200-275 an hour depending on their skill and the complexity of the repair.” And what about our Vermont housekeeper who initially indicated that collision repair shops should charge $15 hourly? “Now, I feel bad! With all that investment, shops should definitely be making a lot more than $15 an hour…Maybe they should charge $40 instead to cover their expenses.” Conversely, several consumers were shocked to learn that Massachusetts shops collect just $40 an hour, the lowest Labor Rate in the country. “That’s nuts!” exclaimed the college professor. “It’s actually pretty obscene. You don’t want to half-ass car stuff because that’s just not safe. I can’t imagine anyone with that kind of overhead being able to live in this state on $40 an hour; it’s just not feasible.” “WOW – that’s not okay at all,” lamented the childcare provider. “I feel that is a complete injustice and setback for the repair industry and those who have chosen this career. How unfair!” “WAIT… WHAT?! HOW?!” exclaimed the hotel manager before
being stunned into silence. “Seriously, $40 an hour?! That’s absurd! How can auto body shops even keep afloat?” the personal concierge asked. “I don’t know how insurance companies get away with what they do.” “Well, insurers are going to screw you,” the occupational therapist agreed. “I had no idea that they were just as bad [on automotive]. Many consumers pay into their insurance and never use it, so the insurers should definitely be paying more than they are.” Although it’s quite clear that some truly do recognize the value of what body shops do, few can put an appropriate figure next to it. Speaking to consumers of various professions played a role in our research as many used some of their own professional knowledge as a point of comparison, yet most didn’t even come close to recognizing the amount of training and equipment needed, let alone just exactly how much cost is involved. So, what does this mean for repairers? There is certainly a lot of work to do in and out of the shop to educate the consumer. One way to go about educating the public is to let them know about the work being done to get legislation to protect their rights and their wallets. AASP/MA and its members have been pushing hard to back HB 1111, an act to establish a minimum reimbursement for insurance claims through the legislature. This bill would guarantee consumers have a choice and won’t be limited to the amount an insurer is willing to pay for the repair of their vehicle. Communication is so important, especially to people outside of the industry. Talk to them about what you go through; at the end of the day, they just might “get it.”
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[FEATURE]
The Tech Shortage That Never Ends
by Chasidy Rae Sisk
Collision Instructors
Weigh In on
The ongoing technician shortage sometimes feels like The Song That Never Ends – it just keeps going and going! Around the country, industry professionals struggle to find and retain qualified help, and while many factors contribute to the lack of workers, it’s hard to imagine that this dilemma can be resolved without the assistance of the schools and instructors providing the next generation with their collision education. Curious about their thoughts on the topic, New England Automotive Report sat down with three local collision repair instructors: David Lelievre (Montachusett Regional Vo-Tech; Fitchburg), Kenneth Stukonis (Assabet Valley High School; Marlborough) and Tim Arruda (Upper Cape Tech; Bourne) who have taught for 15, 23 and six years, respectively. New England Automotive Report: How do the current number of enrolled students compare to past numbers? Why aren’t more students interested in a collision repair career? David Lelievre: We’re pretty fortunate to have good student numbers, but that’s not the case for many other schools around the country. Our numbers haven’t dropped at all; we actually have a waiting list. I’m not really sure what we do differently, but we work hard to keep the shop clean and well-organized to make sure it’s a good environment for kids to be in. Our shop is very busy, and the students seem to enjoy that. Our program has been filling up for the past eight years, and this year’s enrollment was the highest – we have seven kids on the waiting list. The number of kids that actually stick through the program is a little lower, and I think that's partially due to parents pushing their kids to go to college. Higher education is good, but it’s not meant for everyone, and it hurts the trades. There’s a huge skills gap in this country because too few young people are going into and staying in the trades. Additionally, kids are just different these days. They’ve changed a lot. Kids used to put their broken bicycles back together; they had tools in their hands in middle school. Now, some of these kids don’t even know what a Phillips screwdriver is, so we’re really starting from ground zero. I think that’s also why many who go to work in shops after graduation eventually leave the industry. Shops want to hire someone who’s immediately productive, but these new technicians require more training to be productive. A few local shops have some really good programs where they foster new techs’ talents or even offer incentive programs like giving them a toolbox after a certain 28 April 2022
New England Automotive Report
number of years, and we see those shops being more successful with retention. Kenneth Stukonis: Our numbers are really good, and my co-worker who works with the younger kids does a great job of bringing energy to the shop. Our shop is full with 64 students, but getting those numbers has never been our problem. That full shop at school doesn’t correlate to getting graduates into the trade; issues arise when we send them out into our industry. Around 40 percent of our kids are true “gearhead” types who will go into the trade, and the challenge is getting the other kids equally excited. The biggest problem comes down to money; it all trickles down to the Labor Rate. This is a flat industry, and since these young men and women are rarely earning $1 over minimum wage, they only stick with it for a little while. They can make $20 an hour at Amazon and enjoy an easier life than the grind of a body shop, so we’re up against that. Many of them are getting out in their early 20s due to a lack of financial backing. I know one young technician who loved working in a shop, but he left the industry because he’s earning an extra $10 an hour constructing steel buildings. I understand shop owners’ challenges when it comes to costs, but it’s a tough sell to attract kids to this industry when they see their peers in other trades earning so much more. Tim Arruda: It fluctuates. Since I teach the freshmen, I’m more involved with recruiting students to the collision shop, and the number one problem for recruitment is that kids are looking for what pays the most. With the Labor Rate situation in Massachusetts, that’s their biggest deterrent and the thing we have to combat. It’s hard to get them interested when they know they’re going to make about the same in a collision shop that they could make at Walmart, while their peers who study plumbing make good money right out of high school. NEAR: Why do you think that so many schools have cut their collision technology programs? DL: I don’t understand why that’s happening when there’s such a huge demand for collision repair technicians in this industry and everywhere else. Suppliers constantly tell me their shops would all hire three technicians immediately if they could find them. If the schools are shutting down programs due to a lack of student interest, they
should first try to figure out how to draw more students. When kids first come to school, they want to enroll in the shops where they can make the most money on day one, and they know they need to learn a lot about collision before their wages will compete with other trades. It’s hard work to attract these kids, but we try to keep it upbeat and fun. While we’re doing freshmen exploratory tours, we shut down half the shop to give them a full experience with a day in the paint booth, one in welding and one in detailing before letting them pick their favorite area for the final day. KS: We have 500 kids on the waiting list to come to our school, and since we can’t take them, they have to go somewhere. Kids really like cars, especially the younger ones who are excited to get their licenses in a couple years, so coming into our 8,000 square foot shop and getting to be around cars is a big draw for us. We’re energetic, and they like our shop. Unfortunately, that doesn’t translate into getting kids out to the co-op program or into the trade itself. Our goal each year is to get 50 percent of seniors placed in shops, but we’re closer to 30 or 40 percent which is pretty disappointing. We’re hoping to start an apprenticeship program and maybe offer some I-CAR classes in the evening. TA: They’re simply not drawing enough kids. It could be that some teachers aren’t as passionate about the industry anymore, or it could simply be the fact that they don’t make that much money. Another challenge that we face is combatting that old image of the industry; a lot of students’ parents tell them there’s no money to be made in this dirty trade. We’re still fighting the battle of what shops used to be in the 1980s and ‘90s. NEAR: What type of hurdles are you facing as an instructor? DL: We have a fairly good budget, and maybe that’s why we’re able to attract freshmen. Our biggest problem is keeping up with so many kids; 36 is a lot of kids on the shop floor at the same time! We don’t have the space to fit enough cars for them to work on simultaneously, so we’ve been doing more project-based training which isn’t quite like working on a live job. Our school’s challenges are different than most other schools’ problems. KS: Our school is lucky to be in a healthy, middle-class area. We’re able to invest in new equipment because we have a good economy here, plus the school allows us to do some customer work to generate additional funds. But as a parent, would I want my kids in this industry? Sadly, no. It’s a nightmare, and that’s awful to admit since I teach and love this industry. So many students are good at this, and while I want to see them enter the trade, I don’t know if they can do that. It’s a tough sell when we’re sending them out to shops to make minimum wage after graduation with no clue what their future will hold as repairers. TA: I can’t complain; my school is 100 percent behind everything we do. We have high-quality equipment and supplies in our shop that some local shops don’t even have! We spray with PPG waterborne paints, and we use a Car-O-Liner frame machine and Pro Spot welders. We invest a lot into our program and our students, and by implementing technology into our program, we’re able to draw more kids in. I know there are other programs that don’t receive the same
level of support, but we’re definitely getting the support we need from the school, and we’re really grateful for that. NEAR: How can body shops get involved with schools and students? Why should they? DL: We have a really strong advisory board with 18-20 people who meet twice a year, and they’ve been critical in helping us get new equipment and keeping us up to date on the multitude of changes happening in the industry all the time. Our meeting minutes go to the school, so they can see what equipment we’re going to need soon and start budgeting for it. To retain these young technicians, the industry needs to develop some better apprenticeship programs and be willing to foster these kids. Realize they aren’t going to be an A-tech right away; they’re very green because they’re still learning, so task them with entry-level skills like prepping parts rather than advanced tasks like straightening frames or hanging quarter panels. KS: Schools and industry have to work hand in hand. We have a great advisory board, but we really need to expand our mentoring and apprenticeship programs to help these kids become better technicians at a younger age. We cannot afford to wait for them to reach their best abilities in their mid-30s; we need them to reach peak productivity in their early 20s which will also help them make more money. The Labor Rate in Massachusetts is killing us, and something has to give. If it doesn’t get better, there will be no one left to fix cars. TA: Our advisory board meets twice a year and consists of local shop owners – the same ones hiring our students after graduation. Engagement from local shops is great because they help us and our administration understand which tools and equipment to buy and what things we need to teach so we can grow. A lot of those shops also participate in our co-op program, giving students a chance to spend part of their day working; most of our kids would rather work for money than for a grade. Because I ran a shop before becoming a teacher, I understand that side of the equation too, and hiring kids straight out of high school means you’re getting them raw and can train them how you want. Every shop has its own way of repairing, and when you get these young kids who still want to learn, there’s an opportunity to develop them according to that shop’s style and technique. They learn the basics in school, but you get to finetune those skills to your business philosophy. Unfortunately, the biggest issue is that these kids aren’t staying in the trade after graduation because they don’t get paid what they should. NEAR: The million-dollar question…How do we fix it? How do we solve the tech shortage dilemma? DL: When we find young kids who enjoy working on cars, we really need to foster that interest, but the pay scale needs to be competitive with other industries too. Of course, that’s a whole industry topic that’s been a hot button since I was in school, and there’s no easy answer on that. But there are things we can do. Shops getting more involved with the schools through advisory programs or giving demonstrations to our classes is vital. Our students love when industry professionals visit. Instructors become like their parents – they only
continued on pg. 31 New England Automotive Report
April 2022 29
30 April 2022
New England Automotive Report
[FEATURE] continued from pg. 29
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half-listen to us, but when someone who “really knows what they’re talking about” comes in, they pay more attention. KS: Get involved. Offer apprenticeships. If the industry can’t do a mentorship program, we need to find a way to do it through the schools, possibly after graduation as a way to help shops continue training these young technicians. They have a lot of potential. This generation grew up with technology, and it’s amazing how they excel at reconfiguring things. Last year, one of my students went to work in a shop after graduation. She wasn’t great with the hands-on stuff in class, but when they handed her a scan tool, she found out that she can really make it dance! We have to strengthen our students because they’re going to be the backbone of this industry going forward. But they can’t become that backbone if they don’t stay in the industry. Few of them decide to enter the industry after graduation, and too many of those who do end up dropping out of the trade in their early 20s. They’re starting out at minimum wage or just above it, and the passionate ones will stick with it for a few years, but eventually the allure of a lower stress job at Walmart where they can collect a higher paycheck pulls their attention away from the career they love. It’s a direct reflection of finances and shops’ inability to pay adequate wages - and it all trickles down from the suppressed labor reimbursement rate in Massachusetts. Shop owners want to pay these kids an amount that makes it worthwhile to continue their collision career, but they’re up against continuously rising costs - without consumer reimbursement rate adjustments being made to account for those increases.
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TA: A lot of things are causing the tech shortage. Number one is turnover. Look at the average age of a body shop technician: 50-60 years old. Hardly any young people are entering the industry, and that’s a huge problem. We have to promote the industry to get young people involved, and the best way to do that is by paying them well. We’re the only industry that still pays a flat rate, which doesn’t work
continued on pg. 37 New England Automotive Report
April 2022 31
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NEAR_Collision_COL15.indd 1
New England Automotive Report
April 2022 33 6/28/21 9:50 AM
[LEGAL] PERSPECTIVE by James A. Castleman, Esq.
The Benefits of Documentation Lawyers depend on documentation to be able to properly represent their clients. It is the basis of being able to effectively prove a point to a judge or jury, and it is also the basis of being able to negotiate effectively on behalf of a client. The better the documentation, the better the job we can do and the better representation our clients receive. How do you prove that the other guy caused damage to your client or that they violated the terms of a contract? What documentation do you have to prove what damages were actually incurred? What do the emails say? What do the witnesses say? What do the payment receipts say? What do the medical bills show? What do the experts say? Does the client have documented expenses? Do they have accurate time records? Is there good data to prove what something actually costs, or are there writings that prove what a manufacturer recommended for use of a product? Perhaps studies show how long a disability is likely to last, or contemporaneous writings document what was said in a telephone call, when that call was made or how many telephone calls they had to make. By the same token, good documentation is required to effectively serve a customer in the collision repair business too, including: What is the proper amount to charge for a paint job? Over and above what common sense dictates, with regard to paint and materials charges, the governing regulations often REQUIRE that documentation be used as part of your job. In particular, the Auto Damage Appraiser Licensing Board (ADALB) regulations say: “With respect to paint, paint materials, body materials and related materials, if the formula of dollars times hours is not accepted by a registered repair shop or licensed appraiser, then a published manual or other documentation shall be used unless otherwise negotiated between the parties.” In other words, if either you, as a licensed body shop appraiser, or the licensed insurance appraiser do not want to accept that traditional (outdated?) dollars times hours formula to determine the cost of paint and related materials, then an applicable paint 34 April 2022
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estimating manual (or computerized estimating system) or other documentation MUST be utilized to determine the charges – unless, of course the two of you can mutually, and in good faith, negotiate a different amount. Please note all of the elements of this requirement. First, if either you or the insurance appraiser does not want to accept the dollars times hours formula, then the formula CANNOT be used – and if the other appraiser refuses, they are violating the law and risking the loss of their appraiser’s license for failing to comply with the regulation that governs the exercise of that license. Second, once a party refuses to accept the formula, a published manual or other documentation must then be used. Be aware that “other documentation” is not just a number pulled out of thin air. It needs to be from a reliable industry source, and it must be based on real data. Paint manufacturers know what they charge for paint, and they know very well how much of their paint is needed to cover any specific section of a car. By the same token, reputable companies that sell computerized paint estimating systems have done studies to establish how much paint it takes to cover a section of a car, how much time it takes to apply that paint and what almost every automotive paint on the market costs. The paint manufacturers and the computer estimating system companies have done their homework, their information is demonstrably reliable, and the information that they provide constitutes good documentation. On the other hand, neither party to the negotiation can legitimately rely on unexplained numbers. Blind alleged “studies” by insurers (or by collision repair shops) without demonstrable background data have no place in the negotiation of paint and materials charges. A claim that “we have studies, but they are proprietary” makes no sense and should have no place in negotiation, because there is no way to substantiate the accuracy of such “studies,” how they were conducted or if they were conducted at all. If an insurance appraiser claims they are using data from such supposedly proprietary studies, insist that they show you the study! That would be where the documentation comes from – not from continued on pg. 38
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[FEATURE] continued from pg. 31 for younger technicians who don’t have the experience to be quick and increase their earnings. Insurance work is the basis of our industry, and although paint and material costs go up every year (or even twice a year), no one gets compensated for that, and the consumer reimbursement rate in Massachusetts has been the same for 30 years! It’s not enough. At our school, we’ve invited some state representatives to check out our program and see how much we invest in the industry to help them understand why they need to examine the Labor Rate issue. These kids are the future of our industry. We should all be paying close attention to the people we’re investing in and relying on to repair our cars one day. As these collision instructors pointed out, retention after entering the collision industry is a problem that needs to be addressed, and shops must combat suppression of consumer reimbursement rates to be able to afford to compensate entry-level technicians in a meaningful way that allows them to fully grasp the true potential in a career in this industry. According to a 2021 ASE survey, 41 percent of graduates were no longer working in the automotive industry; of those who left, 17 percent left for a “better opportunity elsewhere,” and 12 percent left due to insufficient wages. How are you investing in the industry’s future by getting involved with local collision school programs and their students? How are you retaining young employees once you get them through the door? Stay tuned for next month’s edition of New England Automotive Report when we’ll talk to some local shop owners about their engagement with students and schools and what they’re doing to improve employment retention.
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
PRESIDENT’S MESSAGE continued from pg. 6 AASP/MA provides updates on all our activities, along with essential industry training, at each meeting. Are you going to attend our next meeting so you can learn ways to improve your business and our industry? During the LRSC hearing, our Executive Director Lucky Papageorg made an astute observation: “If we only look at the past, how will we ever move forward into the future?” In the past, collision repairers in the Commonwealth didn’t come together to demand change for the future. Stop looking in the rearview mirror and start looking at the road ahead! Let’s work together to support the initiatives which are designed to ensure that we, our shops and our families have a better future. If we don’t take action NOW, we’re going to be sitting on the porch in a few years wondering, “Where was I while my industry was being destroyed?” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA PRESIDENT KEVIN GALLERANI is president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com.
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[LEGAL] PERSPECTIVE continued from pg. 34 naked spouting of unsubstantiated numbers. Finally, no matter what the documentation establishes, there is still the ability to negotiate some other number between the parties. BUT, if that is to occur, then the negotiation must be conducted in good faith. An insistence by one party of “that is all that we are going to pay” is not a negotiation – it is an unfair one-sided attempt to force the use of an unsubstantiated and unreliable number. Documentation in other contexts The use of documentation in regard to paint and materials charges is important because the ADALB regulations often require the use of such documentation. But documentation is important as well in other contexts in the collision repair industry. What can you charge for the repairs that you are making? You can charge the amount that your customer (not their insurer) has authorized. Regulations issued by the Massachusetts Attorney General require that you obtain your customer’s authorization in order to be able to get paid for your work. In almost all cases, you must have written documentation in the form of a signed repair authorization with a bottom line number that your customer has agreed to; or you must have obtained oral authorization for the work and your charges, with contemporaneous written notes of exactly what was authorized; or you must have written authorization signed by your customer in a “knowing, voluntary and intelligent” manner that sets a maximum charge for your repairs, with a separate signature by your customer acknowledging that they are waiving their right to approve the exact amount to be charged and the exact repairs to be made. How much can you charge for storage? In order to be able to charge for storage of a vehicle (whether or not the vehicle is repaired by you), you must disclose what your storage charges are to your customer, either on their signed repair order or on a sign conspicuously posted in your shop. Again, regulations issued by the Massachusetts Attorney General require it. Your policy as to when you will charge for storage must also be disclosed in a similar
An insistence by one party of “that is all that we are going to pay” is not a negotiation – it is an unfair one-sided attempt to force the use of an unsubstantiated and unreliable number. manner. For example, do you charge for storage if you repair a car, or only if the vehicle is totaled, or following a certain number of days after a car is repaired if the customer does not pick up the vehicle? You need to disclose this information, and you need to be able to document that you have disclosed it. Further, you need accurate documentation of when the car came to your shop and when storage started to accrue under your storage policy. Assuming that your customer’s insurer is going to pay for the storage (or at least that a claim for storage is going to be made to the insurer), you also need to keep good documentation in regard to your communication with that insurer. Did you inform them of when the car came into your shop? Did you inform them that you will be charging for storage? Did you tell the insurer what your storage policy is? Did you keep track of how long the insurer took to inspect a totaled vehicle and when it was declared to be a total loss? Did you document the days of delay by the insurer that drove up the days of storage? If you want to collect for it, you better have the documentation to establish it. How much will the insurer pay for repairs? Do you have documentation of what the insurance appraiser agreed to during your negotiations with them? Do you have their appraisal in hand? If not, do you have the document with their field notes? If not, do you have a copy of the email that you sent demanding a copy continued on pg. 42
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[LEGAL] PERSPECTIVE continued from pg. 38 of their appraisal and/or their agreement to pay for certain repairs? Do you have your own notes on your own appraisal as to what the insurance appraiser agreed to or didn’t agree to? Do you have a record of the supplement that you requested? Do you have a copy of the email in which you requested the supplement or when you requested that the insurance appraiser come to shop to inspect the vehicle and write the requested supplement? Do you have records of telephone calls made and emails sent and received regarding that supplement? Other related documentation. Do you have parts receipts, in order to establish the accurate charge for those parts? Do you have documentation regarding the aftermarket or LKQ parts that didn’t fit? Do you have documentation as to the extra time that you needed to try to get those parts to fit? Do you have the records of the phone calls and emails that you sent to the parts suppliers that ended up not having those parts or that told you it would take a month or more to get those parts? Do you have sublet receipts? Do you have copies of scan reports? Do you have records of the insurer refusing to pay for certain required repairs? Or of them refusing to pay for a new part that is a safety item? Or of their refusal to pay your shop’s Labor Rate? Or of them agreeing to pay you less for a mechanical repair than they would have paid for a dealer to make those repairs? If you ever expect to get paid your actual charges for any of these items at some point, you NEED to have good documentation regarding all of these issues. Conclusion You may be a talented craftsman, and you may be a skilled negotiator. But if you are going to be successful in the collision repair business and if you are going to serve your customers well, then you also need to be a smart and effective business person. In order to meet that standard, you need to learn to document everything that is relevant to your business, that is relevant to every car that comes into your shop and that is relevant to every repair that you make. You need to have that documentation, whether it is required by some regulation, or whether it is just required by common sense and good business practice. And never forget that you are going to need that documentation if you ever retain the services of a lawyer to represent you with respect to a matter involving your shop or involving a dispute with a customer or their insurer – because, as noted at the beginning of this article, in order to be effective, lawyers need good documentation too. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at jcastleman@prclawoffice.com. 42 April 2022
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ADVERTISERS’ INDEX Accudraft Paint Booths ����������������������������������������������������������OBC Albert Kemperle......................................................................... 19 Audi Group................................................................................ 30 BMW Group.............................................................................. 10 Boch Chevrolet........................................................................... 38 Boch Hyundai............................................................................ 32 Colonial Auto Group ������������������������������������������������������������������� 2 Crown Collision Solutions ��������������������������������������������������������� 32 Empire Auto Parts ��������������������������������������������������������������������� 31 Ford Group................................................................................ 26 Genesis of Norwood ������������������������������������������������������������������ 38 Grieco Toyota............................................................................. 14 Honda Group............................................................................. 11 Hyundai Group.......................................................................... 37 Ira Subaru................................................................................... 12 Ira Toyota of Danvers ���������������������������������������������������������������� 13 Kelly Automotive Group �������������������������������������������������������� IBC Kia Group.................................................................................. 32 Linder’s, Inc. .............................................................................. 15 Lombard Equipment ����������������������������������������������������������������� 17 Long Automotive Group ����������������������������������������������������������� 18 Mazda Group............................................................................. 16 McGovern Chrysler Jeep Dodge Ram ���������������������������������������� 25 Mopar Group............................................................................. 33 Nissan Group............................................................................. 36 Quirk Wholesale Parts ����������������������������������������������������������������� 9 Reliable Automotive Equipment �������������������������������������������22-23 Sarat Ford Lincoln ��������������������������������������������������������������������� 15 Matrix Edge/Valspar �������������������������������������������������������������������� 3 Spanesi....................................................................................... 11 Subaru Group............................................................................. 35 Toyota Group............................................................................. 40 USI North America ������������������������������������������������������������������� 39 Volvo Group............................................................................... 37 VW Group................................................................................. 41 Wagner Motors............................................................................. 4 Wheel Collision Center ������������������������������������������������������������� 31
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