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Insurance Company tells ME what I am worth!


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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.

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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.

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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.

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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

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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.

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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