Aftercrashman

Living in the collision arena all these years I've (we) been use to low or zero parts profitability for many years now, as we pretty much pay the difference when being compensated for aftermarket junk and purchasing and installing OEM parts. Our year end average on collision replacement parts is half the profitability of the repair side of my business with twice the administrative cost on the collision side. When a client shows up with his or her own Alternator I am still making my profit percentage on that job just not the gross sale nor outlay nor data work when in comes to ordering and receiving.

Salaried, hourly with or without an incentive tied to it we seem to cover the gamete when it comes to compensation plans at our facility seeing how we run a collision repair division along with a preventive maintenance general repair center and the easiest thing we seem to all agree on is that year end holiday bonuses are done based upon a percentage of gross income regardless of who you are on that food chain. This year we did a 1.5% so on a 80K they received a gross check of $1,200.00 and a 20K helper picked up $300. These percentages do have targeted numbers tied to them within the operation that each person in each department has complete access to and within your area of the operation you have control over with obviously the seasoned staff members begin watching on January 1st.

Hi Sean - I was involved with collision shop take overs while involved with a conversion franchise company and really open my eyes to knowing your numbers and knowing when to bring the experts in to confirm what you know. There's no crime in staying "I don't understand" or "That doesn't make sense" With regards to existing staff - "Process does NOT drive people - People drive process - therein lies the challenge" the folks staying on need to be convinced to be on board and would find it hard to believe if you were to have a heart to heart with the soon to be former owner - half the is the reason for the sale was staff wanting there work environment to be what they wanted it to be and not the bosses and the other half haven't a clue or don't care. Think CPA! Think an outside CPA strictly numbers not personal. Good Luck Jim

Reggie - Can't say that I blame anyone for wanting to leave Summit I had no idea the internal conflicts within the company and now with all the software delays it seems to make sense as to why. The folks at Summit seem to have addressed that issue and have come to the table with time lines moving forward that I feel good about and let's not forget they are one of the last independent management software firms left in our industry. As for CCC One and the folks that control them (Insurers) it seems easy at first to have them as a package deal but CCC One Management has nothing over Summit when it comes to quality of use nor ease and smooth transmitting of data, The sad part comes in when every bit your information you plug into that program can be and is shared with anyone willing to buy it, this may sound crazy but it's true from the time your estimate is started completed converted parts orders made revised returns supplements created re-created hours logged per tech rates paid per technician material usage migration from scale software you name it they have everything. Did I mention notes, profit reports and cost shifting which is still after all these years as popular as ever within the collision industry for those reading this collision shops have 3-5 Times the investment of mechanics shop and yet somehow they can work for half your labor rates and capped mark up on parts. Changing management software for the benefit of your company can be a good thing but I am not quite ready to allow every insurer watch all my record keeping and monitor my every step unless they would like to buy my business and take me in as a employee. 6 Insurers write over 80% of all Auto Policy's - 1 Glass company oversees virtually 100% of all glass work done in this country - 1 Junk Yard handles virtually 100% of all dismantling and parts sales - The same Junk Yard owns the aftermarket parts company that handles almost 100% of all non-OEM parts sold - You have but 3 estimating software companies left and they all are trying to have there own management module to go along with there estimating so the data mining they can do on you can be sold to anyone wanting it. I would like to hear why your thinking of switching? Jim

The use of such statements from the un-knowledgeable is a difficult one to deal with as we are all consumers and we all make purchases throughout our days weather a clothing purchase at a local store or a meal out, so the feeling of getting a deal or a good bank for the buck is in the eyes of that consumer. Now should you have cost shifted by inflating one area higher or charge for something not needed "The impeded hoadie valve removal of built up carbon" perhaps would have been easier for them to understand then a professional working on my car utilizing the most updated modern equipment available to get the diagnosis right we need to be paid for this service needed and necessary, fairly honestly and ethically. A local shop here offers the free use of any and all of their scan tools and folks actually pull in and play with them and I guess it works for selling work, and then the big independent tire store offers free diagnostics now they need to educate the staff on just how to use the darn stuff as not every car needs a forward O2 and Cat. Oh well a lingering topic for most shops, but nonetheless a worthy one to start the day with!

Store staff need to embrace such technology and until that happens I will be forever struggling to change the process here, unfortunately they all personally have smart phone technology they use privately in there own lives (Dental appointments and cable TV repair service calls and dinner reservations to watching there own children open the front door to the home after getting off the school bus) but fail to see it in there profession. Sad very sad.

New car sales are experiencing sales that are showing very promising signs to a recovery of sorts for some, this good news is for those twisting wrenches on the newer stuff (collision services) that rely heavily of the dollar value of repairs needed not exceeding the thresholds set up by those who profit from someone else s loss (Insurer and re builder of salvage) as salvage has been in record territory at the auctions for the past several years. As for keeping them running for as long as possible consumers can be suggested to but never demanded of and should a VO (vehicle owner) choose to negate necessary services we can not "Not" service them when asked to. Just pity the folks who purchase the old cars showing up with little or no service records and the song and dance by sales people how well this car has been meticulously maintained all the years it's been in service with the previous owner. Pity? Perhaps but certainly it's all business all day!