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Posted

A customer brought in their car for damage to the oil pan. Apparently they ran over something. After inspecting the car and generating an estimate, the insurance adjuster contacted us and the customer and said that "According to labor rates in the area, we should be charging $50.00 per hour" My labor rate is double that.

 

The insurance adjuster said that we will have to negotiate the price. I told the customer AND THE adjuster, "I don't negotiate with terrorists"

 

 

  • Like 1


Posted

Yup, I learned this lesson in my first few dealings with extended warranty companies. My service advisor gets the estimate together, calls extended warranty to see what they will pay, then call the customer with the difference (if there is one). We might work with the customer a little bit, but it is dependent on a lot of factors.

Posted

This was the customer's auto insurance company, not extended warranty. But, for the most part, they are all the same. Sadly, you have to sometimes play their game, but I really do not want to go down that road. I stood strong and explained the labor charges, and in the end, they paid the bill less the deductible. The customer was happy, and that means a lot.

 

Maybe we should all stay strong?

  • Like 1
Posted

We have many times been told by an insurance company that they will not pay our labor rates. Our rates reflect a professional shop with the proper tooling and knowledge to repair there customers vehicle. We do alot of work for bodyshops in our area and on more than one occasion have been in this situation....... My response? We are not a body shop and will not work for a bodyshop labor rate which is usually around the 50 dollar mark. there is a reason why they sublet out the harder electrical/electronic problems. We charge enough to keep our tooling and technicians capable of diagnosing/repairing these problems. The same applies to mechanical repairs paid for by insurance companies.

  • Like 1
Posted

Our experience with warranty companies has been much better than insurance. Insurance companies try to find used parts and bring them to your shop. Couple that with limiting your labor, and your margins are shot. Warranty companies seem to have a better grasp on the realities of our business. They squeeze a little bit but generally don't want to alienate you.

Posted

That's a good point. I guess the key take away is to know who you are dealing with, inform the customer and do your homework. We should also be careful about maintaining our profit margins. All great comments!

Posted

My experience with insurance companies and/or aftermarket extended warranties? Fine, I'll work for what you want me to, but your customer pays the rest. I do not lower my price, sorry. The customer is not happy with THEIR extended warranty and they learn from it.

 

I've dealt with too many aftermarket warranty companies that are just bullheaded enough that they do not care.

 

Travis

Posted

Years ago I had a tire shop bring one in that they forgot to put the oil pan drain plug back in. Of course, the engine was ruined. The extended warranty company not only told me what I was going to charge but they would supply the motor. I did manage to get the tire shop to cough up the difference and I told them I would rather use a motor of my choice, but they wanted the warranty company to pay for it.

Needless to say, the motor was trash. Then they wanted me to pull it back out for free.... ah, no...ain't happening.

 

they took it to another shop. enough said there.

  • Like 1
Posted

Gonzo, to my point...we cannot make the insurance company dictate policy. To a degree it's happening in the medical field and it will end up hurting us.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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