Auto Body Shop Veteran Says DRPs Can Be Profitable If Done Right

Clara

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Autobody News not long ago sat down with Jim Huard to converse about what is critical to him and the current state of the collision maintenance marketplace.

Jim and Kelly Huard are the co-house owners of Painters Collision Centers with two places in Queen Creek and Chandler, AZ. Their intention is 10 areas inside the next two many years through good and strategic growth.

 

As a system shop owner, what are your leading concerns?

 

Hiring and retaining skilled labor is our No. 1 concern.

 

A store operator explained to me 1 time the tug-of-war concerning human body retailers and coverage providers will in no way cease, though it will adjust and evolve. Do you agree, and how and why have your interactions with your insurers adjusted?

 

I respectfully disagree I am different in how I view this. All repairers can perform properly with carriers if they know how to navigate via the process. It is not often just about currently being correct. But in its place of owning the specifics, the suitable documentation and the right mindset about the connection is what is certainly crucial.

 

A further human body shop proprietor explained to me the main dilemma in this marketplace is the very simple reality the coverage providers, in common, really don’t fork out sufficient for repairs. Do you concur?

 

I yet again respectfully disagree, due to the fact from my expertise, all insurers will pay out to restore the automobile the right way. I also consider it is a selection to repair service a motor vehicle correctly. Scans, calibrations and the like will be reimbursed as long as they are thoroughly documented.

 

I am a DRP work flow man. I am fanatical about high quality repairs, and we are super picky about what we restore. The insurance coverage companies are generally seeing the bottom line and there is nothing improper with that. But I do not imagine they at any time want us to do sub-par repairs or compromise our high quality to help you save cash.

 

Are most of your DRPs worthwhile and are you pleased with them?

 

I believe that that all DRPs are worthwhile for all shops. How do you maintenance a automobile? And how do you create the estimate? Are you centered on the profits mix and producing a full estimate? Are you complacent and publish inadequate estimates and what does your throughput model search like?

 

Profitability is predicated on superior top quality estimates and throughput. This is a established reality. A shop that generates 1.5 HPD will put 1.8% to the bottom line, give or take. A shop making…



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