The Consumer-Centric Solution Palmer AK

With DRPs losing favor and shops in desperate search for profitability, creating a consumer-focused business model may be the answer.

By Scott Biggs
5/1/2008


For Dave March, doing insurance work wasn’t a choice when he took back ownership of his old shop after the consolidator that originally bought it went bankrupt and all contracts were void. For Mike Orso, it was a matter of principle and how business should be done legally. Boyd Dingman and Dave Karney made the decision to do less insurance work incrementally as their businesses evolved and they looked for additional profit centers and marketing sources.

These shop owners, some of whom are on direct-repair programs (DRPs), aren’t solely dependent upon insurers for repair work due to the discovery that reaching the consumer directly is a viable business foundation and a valuable complement or even alternative to a DRP.

Now more than ever, the debate and emotions surrounding DRPs rage on. Some advisers and consultants are trying to promote the merits of getting on another DRP, while others are telling shops to “just say no.” There have been sound business reasons for shop owners to move in one direction or the other over the past 15 years. Now, the tide seems to be moving once again, and many shops are looking for a solid business strategy to become more independent and refocus on the consumer as their major marketing source.

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