Breaking Free in '23

EVANGELOS “LUCKY” PAPAGEORG Breaking Free in '23!

What was barely a trickle seeping out from a crack behind a dam is quickly becoming a steady flow. As the flow through the crack increases, the dam becomes weaker every day. The day that the dam is completely compromised and fails altogether is fast approaching. Unfortunately for many, it will be too late; they will have missed their opportunity to get out in front and be in a position to ride the wave to safety and security in the collision repair industry.

Will you be one of the shops that not only survives, but also thrives? AASP/MA is focused on making sure that you are one of those businesses that will be servicing the motoring public for years to come. Servicing the motoring public – while being fairly and properly compensated for the essential work you perform and for the liability you take on – is the goal. Ensuring that you can continue to provide well-paying jobs for the highly skilled technicians in our industry, so they, in turn, can provide for themselves and their families.To do so, more and more shop owners must come to the realization that they must “Break free in 2023.”

That “breaking free” will have to come in many forms. There are some basic changes that can be made here and now to continue the weakening of the dam that contains us. The fact that insurers continue to artificially suppress the labor reimbursement rate means that more shops have had to face the reality that if they are going to stay in business, remain a valued part of their community and provide the essential services motorists require, someone must pay. The realization that, as an industry, we can no longer afford to subsidize the insurance industry as they continue to report record breaking profits is hitting home. That is why a shift to “CO-PAY” in the payment for collision repairs is taking place.

“CO-PAY” is here to stay for the foreseeable future! It is here until insurers realize their business model is no longer sustainable. Insurers must work with collision repairers to find a fair and reasonable rate of labor reimbursement to ensure that insured’s vehicles can be repaired by shops that can afford the proper equipment and train technicians to work on today’s technologically advanced vehicles. Failure to provide a reasonable labor reimbursement rate to this point has led shops across the state to implement “CO-PAY” policies. In many cases, and often to the business owner’s surprise, shops have found the vehicle owner understands the issue and is willing to pay for proper repairs and then pursue the insurer for reimbursement. Contrary to what most shops fear (and what insurers want you to believe), the repairers who have implemented “CO-PAY” policies are booked solid with work multiple weeks out. In some instances, even up to a month or two! They are booked with customers who understand that they will have a “CO-PAY” at the time of completion. The amount of that “CO-PAY” is solely dependent on how much their insurance company is willing to negotiate with the shop in paying for required procedures along with the posted labor rate of the shop.

The “ALLIANCE” has been working diligently to address the labor reimbursement rate legislatively and has gained great support in both the Senate and the House. As with any legislation, there is a great deal of effort and time that needs to be exerted to move towards passage, with no guarantee. There is a guarantee, however, that in every instance where a shop charges accordingly for the procedures they have performed at their fair and reasonable posted labor rate, they will be one step closer to breaking free. They will be one step closer to taking back control of their business while providing top quality repairs performed by top quality and welltrained technicians.

As was explained during our general membership meeting last month, BREAKING FREE does not have to take place overnight; however, as with any journey, it does have to start by taking the first step. Our goal as the “ALLIANCE” is to be sure you have the tools needed to guarantee that the first step is planted on firm ground, giving you the confidence to take the next step. You will experience some degree of push back and resistance, but that is what the “ALLIANCE” is here for: to support you on your journey. The “ALLIANCE” is here to help you create a network of support which is not founded in being competitors but colleagues. We are colleagues who realize that “NO ONE OF US IS AS STRONG AS ALL OF US.” We are colleagues who share our methods of success in a selfless manner. This camaraderie was evident at our general membership meeting when discussing ways to take back control of your business. We shared the methods that led to success and the stumbles that took place along the way, so that others could learn without making the same errors.

It has been a long time coming, but we ARE turning the corner. We have the ear and support of many in our legislature, at

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