WHY GENUINE PARTS?

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103

Toll Free: 800-828-6076

Direct: 603-657-2410

Fax: 603-657-2419 stirrell@iramotorgroup.com www.iramotorgroup.com

IRA Toyota Danvers 161 Andover Street Danvers, MA 01923

PH: 800-774-8411 ext.1

Direct: 978-739-8306

FAX: 978-739-8098 www.iramotorgroup.com

Grieco Toyota 415 Taunton Ave. East Providence, RI 02914

Direct: 401-438-2206

Fax: 401-431-0673 toyotaparts@griecocars.com www.griecotoyota.com

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481

PH: 800-734-0006

Direct: 781-237-4042

FAX: 781-237-3481 parts@wellesleytoyota.com www.wellesleytoyota.com

Bernardi Toyota 1626 Worcester Road Framingham, MA 01702

Parts Direct: 800-248-3033

FAX: 508-879-7895 www.bernarditoyota.com

Balise Toyota 1399 Riverdale St. West Springfield, MA 01089

TOLL FREE: 800-992-6220

FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Balise Toyota of Warwick 1400 Post Rd. Warwick, RI 02888

TOLL FREE: 800-992-6220

FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com continued from pg. 34 get paid – a significantly greater labor rate for those repairs. Are you a certified Tesla repair shop or one of a few shops able to perform repairs on other specialized vehicles? If so, there may be only a limited number of you able to properly make those repairs, and you can factor that into the labor rate that you set.

One Call, One Truck for 14 Brands!

Here is another tip, and I know of situations in which it has worked: If you are a large and reputable repair shop in an area in which few qualified shops exist, or if you own multiple repair shops that do high volume work, then you may be in a position to negotiate with some insurers for a higher labor rate. Collision repair shops rely on insurers to pay for most repairs. On the other hand, insurers need to make sure that there are enough shops out there willing to repair their customers’ cars that will accept the labor rate that they are willing to pay, and they are sometimes willing to make concessions to ensure that their customers are serviced.

Referral repair shops are contractually required to accept whatever their referring insurer is willing to pay for a labor rate. But even if you are a referral repair shop, if your volume of business for a particular insurer is high enough, you may have leverage in negotiating a higher labor rate. Caveat: I have learned that insurers might not want word to get out that they are paying you a higher rate, so sometimes they will refuse to pay a higher rate, instead giving you concessions as to other items that they will agree to pay for; however, if you are knowledgeable and handle it right, the result to your bottom line can be pretty much the same as a higher labor rate.

In thinking about the labor rate issue, please keep in mind that, if the vast majority of repair shops are willing to accept whatever insurers are willing to pay for a labor rate, then no insurer is going to voluntarily pay a higher rate. Enough shops need to recognize this reality and be willing to do something about it.

Finally, if you want to get paid a higher labor rate, then it is critical that you do everything in your power to support the passage by the Massachusetts legislature of the AASP/MA-sponsored labor reimbursement rate bill. If enacted, this bill will require insurers to pay a fair and reasonable collision repair reimbursement rate, tied to the consumer price index. It is a no-brainer for repair shops and will require insurers to pay a minimum reasonable labor rate geared to inflation.

Here is something that you need to recognize: No matter how much money insurers inject into opposition to this bill, the reality is that state senators and representatives get elected by getting the most votes for office in their district. If they know that enough of their constituents care about and want a piece of legislation to pass, and if they want to keep their jobs, then most of them will vote accordingly. Do not turn your nose up at this concept. When asked by AASP/MA to contact your senator or representative, please do so! When asked to contribute to the cause, please do so! When asked to have your friends, relatives and staff contact their senators and representatives, please do so!

Do not just accept the proposition that insurers in Massachusetts are too powerful to beat. There is tremendous power in the vote of the individual, and you need to harness that power if you want your business to thrive.

Conclusion

It may be an appropriate metaphor to say that it has been a great ride – and it has. But I have decided to forgo writing monthly articles for New England Automotive Report at this point and am sticking with that decision. I greatly appreciate the support that I have received from all of the New England Automotive Report staff that I have dealt with over the years and from all of the readers that I have heard from as well. I hope that you have found my articles to be informative and that some of them have been useful to you in the operation of your business or have been helpful to your customers when dealing with their insurers.

Meanwhile, I also hope that a great many of you actually heed my advice and find the strength and ability to take action to do what is necessary to answer, on your own, the question: What can we do about the labor rate?