Navigating profitability in collision repair: A roadmap for estimators
As the collision repair industry seeks new avenues for business growth, it is critical to look inward to ensure no stones are left unturned. Recently, Mark Crossland, National Field Technical Manager at CSN Collision and former shop General Manager, put a spotlight on potentially lucrative areas that auto body shops tend to overlook.
Steering clear of missed opportunities
We have all huddled around the shop, coffee cups in hand, lamenting the uphill battle of turning a profit in our industry. The game has changed; over the past two decades, technology has reshaped how cars are made and repaired. But while repair costs have skyrocketed, the insurance industry is still catching up.
As entrepreneurs, we cannot twiddle our wrenches and wait for the tides to turn. Sure, some folks advocate for drawing a hard line in the sand, fists raised, demanding fair pay for every bolt tightened. But let us take a detour from that approach as we explore a different route—one that leads to profitability without burning bridges.
1. The seat at the table
Any seasoned professional in the collision repair sector will tell you that patience is key. Aggressive demands are not the way to go to ignite change and get us heard. To successfully navigate change and increase profitability, collision repair shops need to be quiet and persistent. Because when shops are on the inside, and have a seat at the table, voices will echo louder.
2. Estimating: The hidden gold mine
I have pored over hundreds of estimates, and guess what? We are leaving stacks of cash on the repair bench. These are not cryptic secrets hidden in fine print; they are as obvious as a dented fender. Here is the loot we are missing out on:
- Removals and re-installments (R&I’s): Those parts we clearly removed? Yes, they deserve a line item.
- Cost guide goodies: Think clean for delivery, mask for overspray, and pre/post scans.
- Refinish extras: Panel backsides, burn-in time, feathering, priming—do not let them vanish into thin air.
- Advanced driver assistance systems (ADAS) calibrations
- Pull setup: Sure, we bill for the pulls, but what about the time it takes to set up?
- Sublet markups: Do not forget markups and travel time to sublets. It is not a free road trip.
3. The fixer-upper checklist
Guidelines vary by insurer, but our estimators consistently miss these gems. The fallout? Profit nosedives, stress skyrockets, and young guns eying other career lanes. But fear not! We are not stranded on the shoulder. Here is our pit-stop strategy:
- Estimator tag team: Peer review those sheets before hitting send.
- Original equipment manufacturer (OEM) deep dive: Dive into OEM procedures for every job. It is like reading the car’s diary.
- Tech squad inclusion: Let body and paint techs join the estimate huddle.
- Cost guide clutch: Keep cost guides on-hand. Checklists are your co-pilot.
- Repair planning: Plan ahead to avoid hidden surprises late in the repair process
- Estimator boot camp: Regular training keeps our compass calibrated.
The slow revolution
Remember, Rome was not built in a day. Change tiptoes in, one step at a time. Monitor reports, spot opportunities, and involve your crew. As Gordon Downie crooned, “An inch an hour, two feet a day.” We are inching toward a more profitable horizon, one estimate at a time.
About CSN Collision
Established in 2002 by four industry trailblazers, the CSN Collision network is dedicated to helping auto body shops enhance their business operations. By providing access to experts who conduct performance reviews and offer ongoing training and marketing support, we empower shops to take their operations to the next level.
Today, CSN Collision is one of North America’s most advanced networks of independent collision repair shops and continues to expand its presence in Europe. Take your shop to new heights; join the CSN Collision network today.
This blog has been created in partnership with CSN Collision.