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Tuesday, December 15, 2009
Seventy Percent of Small to Mid-size Auto Body Shops do not Charge enough for their Services or Labor

Oldsmar, Florida. In a recent survey of small to mid-size auto collision repair shops, auto body shop owners shared that they do not charge all of the industry accepted fees for their work. The survey was conducted by Web-Est, LLC, a provider of auto collision repair estimating software, from Dec 4th, 2009 to Dec 11th, 2009.

Results from the survey showed the majority of small to mid-size body shops were not consistently charging for acceptable labor related tasks as a direct result of not having their collision estimating software fully configured. The most common error was in not having their estimating software's "Pre-Set" charges turned on and/or not set-up properly. Pre-Set fees are various repair charges and can include items such as hazardous waste removal, car covering for over-spray and flex additives. Many other common labor charges and other common tasks or costs associated with most collision repair jobs should be considered by shops and added to the estimate as they generally reflect additional cost in repairing the vehicle.

"The survey results demonstrated the need for body shop owners to set aside more time to ensure their estimates include these real expenses" commented Eric Seidel, CEO/President of Web-Est, LLC. Seidel continued, "We know adding normal pre-set charges in their estimating software can add thousands of dollars in revenue to an auto body shop, when using collision repair estimating software. This can be done very quickly and generally means estimating software pays for itself and will make the shop owner a profit on their software investment."

The survey participants provided insight to items they add to their estimates, which can be seen below. The online survey was sent to over 1,000 auto collision repair shops; nearly 80% of the shops had identified themselves as having 3 or less employees.

 

Shops' Recommended Items to Set as Charges:

Color, Sand and Buff
Hazardous Waste Removal
Car Cover
AntiFreeze
Pin Striping
Front End Alignment
Mask Jambs
Clean & Re-tape emblems/mldgs
Seam Sealer
BAG FOR OVERSPRAY
Flex Additive
Corrosion Resistant Material
Chip Guardon
specials - promotions such as 'bumper day'
Protect undercoating
Tire Mount & Balance
Rack & Measure Frame
Towing
CLEAN VEHICLE FROM REPAIRS
Masking
Color Spray Out Card for Color Match
Used Part Clean-up
Broken Glass Clean-up
Wheel Alingment
refridgerent
Shop Materials
PDR Repairs
Let-Down Panel
Batteries
Adhesive Removal
Clips & Hardware
Prime & Block
Set Back Truck Bed

Posted By Administrator

5 comment(s) for “Seventy Percent of Small to Mid-size Auto Body Shops do not Charge enough for their Services or Labor”

  1. Gravatar of dan penn
    dan penn Says:
    Its no wonder i am told by insurance companys that im the only one that chages for those items.
    I would like to encourage all shops to charge for these additional labor charges. I have long contemplated the the answere to profitability is to get paid for all the additional labor associated with vehicle repair. especialy color sand and buff,cleaning car for delivery,masking jambs for overspray, are all labor intensive and huge profit killers.'
    I get paid for them only because i charge for it!
    its more important to get paid for the opporations performed than how much per hour is charged.
  2. Gravatar of Michael
    Michael Says:
    Funny, I put thesecharges on my ticket when applicable. But the insurance refuses to pay!
  3. Gravatar of gary
    gary Says:
    Problem is when you ARE the only one that use'es them it is hard to get paid for them. a lot of smallshops have no idea if they make a profit or not
  4. Gravatar of Alex
    Alex Says:
    I charge for all of these things, with the exception of a few I haven't heard of or thought of, they may try to fight you or omit these from their estimate, but Ill always hit them with a supplement if they do that.

    Here are a few others:
    Adhesive Kit - when doing a bedside or quarter panel where adhesive is used as well as welds, may also be applicable to window R&I for fixed windows.
    Anti-Flutter material -- for roofs and door skins, the application is included in the time but not the cost of the material.

    feel free to email me if you have any others or wish for a list of them I have compiled!
  5. Gravatar of Matthew
    Matthew Says:
    I must say the only thing we as a shop cannot get paid for is the prime and block of repair panels.

    It does not sound fair from a shop perspective but we can hide some additional time in color and tint.

    That's about the only way we can compensate our painters for time spent on those repaired panels that are over 5hrs repair.

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