PRESIDENT’S MESSAGE
What Are You Putting Into Your Business? As rapidly as today’s technology is evolving, it’s difficult to keep up with all the changes happening – it seems like there’s something new to learn everyday! Because it can be overwhelming, many shops are still repairing cars the same old way they’ve fixed them for years: Get them in and out as quickly as possible. Of course, those cycle times make insurance companies happy, but they aren’t the ones who are liable if the repair isn’t performed properly. As collision repair professionals, we are responsible for acquiring the training necessary to safely restore customers’ vehicles to their pre-accident condition. Yet, too often, shops incorrectly repair these vehicles because their focus is on getting that car out the door and collecting the insurer’s check. Let’s face it: Dealing with insurance companies can be a total headache. A couple months ago, I mentioned an estimate for the bumper cover, tail light and minor work on the quarter panel on a Lincoln Aviator. The insurer’s appraiser wrote it for $4,700; it was an $11,000 repair. The insurer didn’t want to pay for the OEM repair procedures or the research time involved, and when I argued that there’s no way to properly repair vehicles without that information, they
12 | New Jersey Automotive | January 2022
by JERRY MCNEE
rebutted, “It’s a cost of doing business.” Well, Generally Accepted Accounting Principles (GAAP) says otherwise because I wouldn’t have that cost or require that research time if that vehicle wasn’t in my facility. The appraiser didn’t agree with me, but when the final supplement came in, there was only a difference of $100 between his final amount and mine. When an insurer says, “It’s a cost of doing business,” how many shops would just say “okay”? Far too many – because they don’t know there’s a better way and because they’re scared to lose the safety net of insurer work. I was scared when I lost a DRP relationship in the early 2000s; I was on track to do a million dollars a year with that company, but after separating from them, my sales increased! I’d never go back. DRPs are a security blanket, but if you’re doing what you’re supposed to do for the vehicle owners who entrust their cars to you, you’ll never miss them. The insurance companies are not our masters, and shops need to stop bowing to them. We need to stand up for our customers, ourselves and our industry! Instead, every one of us should be investing time and continued on pg. 43
