Auto Body Collision Shop Business

Agreed. For us, since we want to be a one-stop-shop as much as possible for our customers and do not like sending them elsewhere, we chose to take care of our customers by doing these warranty company jobs, but charging a higher rate seems best for us.  Our labor rate for warranty companies is closer to $35 above normal rate to recoup the extra phone time and hassle we advisors go thru with warranty companies. I agree with  MOORE Automotive about advising the customer ahead of time - to expect the warranty company to not cover all of the repair even if its a repair is included in the contract. What are the thoughts of bringing this up to customers who are looking at buying a new car....that the dealer will likely attempt to sell them a warranty package, and advise them to instead put that money aside for vehicle repair/maintenance. I told one customer that the $1500 that they could pay for the warranty package may or may not cover the needs your car has in the future, but if you store it away in a separate account, it will defiantly go toward any needs your car has. Is that a good idea...any thoughts?

Another amazing podcast, a must listen to!  As always!  

Great advice for all! 

I couldn't find a place for book recommendations, so I started one. Here's a great list of "must-read" books for business.  It's from Ratchet & Wrench magazine. https://www.ratchetandwrench.com/toolbox/educationtraining/article/55242667/strengthen-your-leadership-muscles-12-must-read-books-to-fuel-success-in-2025 https://www.ratchetandwrench.com/shop-life/columnists/article/33006771/bennett-10-must-read-books-for-auto-repair-shop-owners

In one of his books (E-myth or E-myth Revisited), Michael Gerber discusses Job Costing. While it seems easy enough on the surface, implementing it was much harder due to all the "hidden costs" involved. In addition, I felt it took up too much time. After a few months, I learned to streamline the Job Costing process.  Originally, I used Job Costing to price out estimates—a big Mistake.  Much later, I learned to use it to set our shop hourly rate and parts mark-up percentages. The biggest eye-opener for me was all the "hidden costs" like matching Social Security and building rent, but that wasn't all.  Over a year or so, it did get easier because I got better at it.  One of the big things I eventually learned was to perform Job Costing on a spreadsheet template I created.  Check out Wikipedia Using Job Costing for a more detailed description of Job Costing. As time went on, I would eventually Job Cost on only a few invoices, not every one as I did in the beginning.  I would change the basic Job Costing spreadsheet template as my costs would change.  Believe it or not, after a while the drudgery of Job Costing became easy and fun.  Check it out yourself, you'll be surprised.

Your comments truly resonate with me, and I feel the same way. Shop owners have a moral obligation to be profitable.  Shop owners need to feel good about themselves, pay their employees well, earn a profit for future growth, and take care of their families.  Too many shop owners are caught up in the day to day. They need to reach out for help, get a coach, get management training. Know the numbers, build more profit. They will sleep better at night too! 

I think we would all be better if they adopted your strategy! 

We deal with them. Shop rate is $20.00 per hour more and we add the time we have to hassle with them to the bill. Also inform them and the customer that the customer has to pay us what they will not pay. I do not take any crap from them at all.