Quantcast
Jump to content

Don’t ask me to compromise my integrity

Joe Marconi
 Share

Recommended Posts

MattW Apprentice

MattW

Posted
Posted

Definitely agree. It's not the insurance company that gets blamed for a faulty rack and pinion. Nor does the insurance company reimburse you for your labor if the rack and pinion is bad. I think you took the perfect course of action in explaining the situation to the customer and taking it from there. My step-dad always had a saying "Don't put yourself in a position to be questioned and you'll always be fine." In this case you avoided being questioned at any point from any problem that may or may not have come from installing the used part.

FROGFINDER Rising Star

FROGFINDER

Posted
Posted

An aftermarket insurance company wanted me to install a used rack & pinion that they would provide from a salvage yard that they do business with. It’s bad enough that their arrogance dismisses the fact that we make money both on parts and labor, but to think that I need the business that bad that I would compromise my integrity.

 

I flat out told the insurance company, “NO”. I also told them, “this is my job, my business and I have an obligation to my customer to do the best job possible and do what’s in the best interest for my customer". I spoke to the customer and explained the situation and what I thought was the correct repair. She agreed and paid the difference to install a quality reman unit.

 

Shop owners, agree or disagree?

AGREE. B)

Gonzo Grand Master

Gonzo

Posted
Posted

I'm a firm believer when it comes to work in my shop... I call the shots, and Joe, I totally agree with ya.

 

Many years ago I had another repair shop bring me a job they had been working on. This tire shop was working on the motor for some reason. In the process they managed to blow the guys motor up. (Probably old anyway and shouldn't have been screwing around with it.) However, they didn't know it was blown... so they towed it to me. When I told them it was a bad motor they called their insurance company. The insurance company worked thru the tire shop and in a few days an out of state salvage yard truck pulls up and drops a motor in the parking lot.

 

I went ballistic. It didn't do any good. All I was told is put it in. "OK," I said, "But it's on you if this POS doesn't run right!" It didn't.... ran like crap. Injectors bad, leaking intake... on and on... Now, mind you I'm only installing this turd they brought me... not fixing their crap. The next thing I know I get a call from this insurance Ahole... and he reads me the riot act. I told him where he could shove his POS engine and his stupid policy... because I didn't want to do the job anyway.

 

A day or so later a tow company from out of state towed the thing off. Never seen it again. Good thing too... I wasn't going to do another job like that ever again.

 

Just my thoughts on the whole thing.

 

Ok Joe... we're even... now you GOT ME RILED UP ! ! ! LOL

 

 

  • 2 weeks later...
opsrex Newbie

opsrex

Posted
Posted

An aftermarket insurance company wanted me to install a used rack & pinion that they would provide from a salvage yard that they do business with. It’s bad enough that their arrogance dismisses the fact that we make money both on parts and labor, but to think that I need the business that bad that I would compromise my integrity.

 

I flat out told the insurance company, “NO”. I also told them, “this is my job, my business and I have an obligation to my customer to do the best job possible and do what’s in the best interest for my customer". I spoke to the customer and explained the situation and what I thought was the correct repair. She agreed and paid the difference to install a quality reman unit.

 

Shop owners, agree or disagree?

 

 

I'm sure that I am alone in this, but I disagree with you on this. What most of us call an extended warranty is not a warranty; it is a Vehicle Service Contract and they are very specific in their terms. Every VSC I have seen specifies that they have the right to use a part of a Like, Kind, and Quality. This means that the donor vehicle should not be older than, or have more miles than the vehicle receiving the part. One of the biggest suppliers of used parts (having purchased Keystone) is even called LKQ and is publically traded.

 

I am sure you can understand why they specify the right to use an LKQ part. If an engine goes out on a six year old vehicle with 75,000 miles on it, do you expect them to put in a new engine? Drop $5K on a Jasper reman? In order for them to do that, the price of the VSC would be priced so astronomically that no one would buy one. How much would your car insurance cost if replacement value equaled the price of a brand new car? How much would your health insurance cost if the insurance company had to pay whatever the doctor wanted to charge, rather than negotiated prices?

 

As someone who advertises that I accept "Extended Warranties", I am OK with them supplying their parts. It does not "compromise my integrity". I am not the one insisting on using a used part, and I am not the one paying for the repairs. My job is to make sure that the supplied part is in good working order. If I install it and it does not work properly, I call the insurance company, have them send another one, and rebill them for the labor and power steeing fluid. Remember, the customer is the one who entered into an agreement with the insurance company. It is their obligation to have read and understood the terms of the contract. But they don't. They hear "bumper to bumper" from Plaid Coat Charlie at the car lot, and that's all they hear. Take personal responsibility for signing a contract without first reading it? Surely, you jest!

 

Anytime an insurance company wants to supply an LKQ part, I always explain the options to a customer. In the case of a rack and pinion, I will tell the customer that their VSC will assist with $---.-- for the part, or they will supply a used one off of a vehicle with less miles than theirs, or I can install a new or remanufactured one if they would like to pay the difference. Very seldom have I had a customer choose to pay the difference. In almost every case they choose to have the used, LKQ part installed.

 

I know what to expect from the insurance companies and I treat it like a game. If a customer tells me they have an extended warranty, when I blink, you hear an old timey cash register sound. I read their contract, and then go over the car "bumper to bumper" looking for things that the VSC will cover. Oil pan gasket leaking and the VSC has seal and gasket coverage? I will charge for the gasket, the RTV, the oil, labor and diagnostic time. Rack and pinion leaking and they want to supply the rack? No problem. Labor, PS fluid, and a half hour diag, thank you very much.

 

I always tell the customer that the insurance companies job is to make sure that they spend as little on car repairs as possible and that my job is to make sure that they spend as much on car repairs as possible so that the customer gets the full value of what they spent on their VSC. The insurance companies are constantly sending inspectors out, but I stand behind every repair that we call in and we have a very low decline rate. That is how I make my customers happy and don't compromise my integrity.

opsrex Newbie

opsrex

Posted
Posted

I do not have a problem installing some used parts like a spindle, an engine, transmission, or even a strut in some situations. We use LKQ on a regular basis and I can dail their phone number without looking it up. It is 800-382-9792 and the person we deal with is David at extension 153. However with something like a rack and pinion it just doesn't make any sense to me. I would expect a used rack and pinion to only be a few bucks cheaper than a remanufactured one. In addition the chances of a used rack and pinion coming to me with some type of damage is very high. Junk yard parts pullers aren't very careful at times and sometimes do not recognize that they are creating problems for an installer. Would you install used wheel cylinders or a used window regulator?

 

As far as looking the vehicle over from top to bottom we do that so they can get the most bang for their contract and for their deductible. We tell them to also bring the vehicle in just before the warranty expires for a good going over.

 

 

The issue i had was with the OP opining that playing ball with the insurance company was somehow compromising one's integrity. My opinion is that it does not. Our customer is also their customer except they also have a legally binding contract with our shared customer. Since you do in fact use LKQ parts, obviously your integrity is not compromised when you do. Neither is mine. If we are talking about whether something is a smart business decision for the warranty company, that is another question. Usually the price difference on something like a used versus reman rack is so negligible, that it doesn't make good business sense to ship out a used one. But if the car in question is an exotic it might be a good decision. If it's a Taurus, probably not so much. But whatever the case, it's their call and my integrity is not compromised either way. Would I install a used window regulator? I recently had a warranty company scouring the country for a seat motor for a Mits Diamanté because the dealer wanted $1500 for one. If they had found a used one would I have installed it? In a New York minute.

 

As far as quality of used parts, I agree. I would much rather use a new part than a used part. I would rather take name brand medication than generic, but my insurance plan calls for generic when available. If the terms of the VSC call for a LKQ, then as long as I am inspecting the part before installation, and installing it correctly, then my integrity remains uncompromised. You evidently feel the same way or you would not be installing used struts and have LKQ on speed dial.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

  • Similar Topics

    • Riccardo
      If you had to step away from your shop for 30 days tomorrow, would your business continue operating successfully without you?
      By Riccardo

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Changing The Industry
      Episode 271 - Training New Techs & Building a Lasting Automotive Business With Charles Mitchell
      By Changing The Industry
      Episode 271 - Training New Techs & Building a Lasting Automotive Business With Charles Mitchell
    • DavisL
      Free EV repair directory, would your shop benefit?
      By DavisL
      Hey all, Davis here, new to the forum. I built evqualified.com, a free directory that helps EV owners find shops based on verified credentials (ASE certs, EV training, high-voltage safety) instead of reviews or paid ads.
      EV ownership is growing fast and most owners have no idea where to take their car. They don't trust Google reviews to tell them who's actually qualified to work on a 400-800V system. That's the gap this fills.
      If your shop does any EV or hybrid work, even basic stuff like 12V batteries, brake service, tire rotation. You qualify for a listing. Takes 2 minutes to check if you're already on there or submit your shop. Here's the link https://www.evqualified.com/for-shops
       
      Curious to hear from anyone doing EV work:
      Are you seeing more EV customers coming in?
      What's the biggest challenge with adding EV service to your shop?
      Would a credential-based directory actually help you get more EV business?

      No cost, no catch. Just trying to build something useful for the industry. Again, here's the link to get added to the site https://www.evqualified.com/for-shops.
      Thanks!
       
    • Hands On
      "Service Up" Contacted me today saying one of their members wanted to use my shop
      By Hands On
      The emailed me a form to sign up to be a "service provider" The company Service Up will send me the client. They will bill the client and pay me after the repair. Look at some of the highlights from the terms:
       All transactions completed through the Platform are subject to a transaction fee ranging from 1.99% to 10% of the gross amount of each repair, with a baseline marketplace fee of 3.99% unless otherwise specified in a fleet-specific addendum.
      The marketplace fee applicable to a given repair is one of the following:
      • 3.99% (baseline) of the gross amount of all repairs completed through the Platform for all other customers, including customers to whom ServiceUp has referred you.
      • A rate specified in a fleet-specific addendum, which overrides the baseline, provided such rate falls within the 1.99%–10% range stated above.
      In addition to the marketplace fee, the following optional fee may apply:
      • QuickPay fee — an additional 3.50% of the gross amount of the repair if you elect to receive early payment (typically next business day). In the event a credit card is used by the customer for payment, the 3.50% QuickPay fee will be automatically applied.
      So, the fee they charge is any where from 1.99% to 17% if they pay credit card and you want funds next day
      Company reserves the right, in its sole discretion, to modify, increase, decrease, or otherwise change the transaction fees, early payment fees, or any other amounts payable under these Terms at any time. 
      But those fees could go up with no notice at all
      The Company shall remit payment to you net of any applicable transaction fees as promptly as practicable after, and contingent upon, Company’s receipt of payment from the applicable fleet customer for the services rendered by you. 
      They will pay you for the work you did, as long as they are able to get paid.
      You acknowledge and agree that the Company shall not be responsible for any delays or failure to pay that may be caused by a fleet customer.
      And if the customer fails to pay them, too bad.
      You further acknowledge and agree that (i) the Company may withhold funds in the event of any dispute between you and the Company pending the resolution of such dispute, (ii) you shall not collect any fees for services rendered hereunder directly from a fleet customer and shall receive payment for such services solely from the Company, (iii) in the event the Company determines that you have violated the foregoing subsection (ii), the Company shall have the right to charge a penalty of 10% of the gross value of the applicable services and may withhold that amount from future payments or debit your bank account to recover the penalty and any applicable fees for services.
      AND if they customer fails to pay them and you go directly after the customer yourself, tack on another 10%
      So basically, you fix our cars, and we maybe pay you after we take fees.
      Has anyone used this platform? What do you think?
    • Changing The Industry
      Episode 269 - Lessons Learned From Custom Car Builds and Business Ownership With Sunny Massera
      By Changing The Industry
      Episode 269 - Lessons Learned From Custom Car Builds and Business Ownership With Sunny Massera


  •
    nptrb

    Mid-Year Reset: What Your Auto Shop’s Numbers Are Telling You

    By nptrb, in Automotive Management,

    0 comments 5 views
    Joe Marconi

    Every shop owner tracks gross sales. But is that really the number you should be focused on?

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 1 33 views
    Joe Marconi

    Marketing Strategies To Attract and Retain Your Ideal Customers

    By Joe Marconi, in Automotive Marketing,

    1 comment 7,923 views

  • Our Sponsors

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...