Use Your Clout, You Lout: Labor Rates Carbondale IL

If you're in a trade market that has a high utilization of used parts, you'll have a difficult time negotiating for OEM. The best thing you can do here is educate the consumer and be sure you understand the policies of your customers' insurance carrier.

All Covered Inc
(312) 640-0300
205 W Wacker Drive # 205
Chicago, IL
International Technologies Inc
(217) 892-8825
723 Galaxy Drive
Rantoul, IL
Business Network Sltns Cnsltng
(847) 272-7780
3384 Commercial Ave
Northbrook, IL
Inova Group
(773) 772-7521
2113 N Kedzie Blvd Unit A
Chicago, IL
Management Control Intl Inc
(847) 205-0137
83 Caribou Xing
Northbrook, IL
AAA Automotive Services - Parkway Pointe AAA Auto Center
(217) 787-2187
3316 Robbins Road
Springfield, IL
Planning-Communications
(708) 366-5200
7215 Oak Ave
River Forest, IL
Eagle Global Logistics
(847) 593-7124
1850 Arthur Ave
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Triumph Fabrications-St Louis
(618) 259-6089
1145 E Airline Dr
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Magellan Associates Llc
(847) 955-1080
318 W Half Day Rd Ste 220
Buffalo Grove, IL
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Use Your Clout, You Lout: Labor Rates

"When will dealership body shops - with their captive clientele - wise up and stop making concessions to insurance companies? e.g.: Charge the same labor rate as in their mechanical shop. Their mechanical shops don't work with junkyard or jip parts. Why agree to do anything different in the body shop?" asks P. Michael Riffert, president, Engle's Frame and Body Service, Ephrate, Pa.

By David M. Rowe
4/1/2002

Though there's no clear-cut answer to this question, I can tell you that dealership body shops don't have nearly the clout that this reader thinks we do, and I can share some insight that's helped to make my dealer body shop successful.

Insurance Climate - The first thing that comes into play here is the typical insurance climate in your geographical area. If you're in a trade market that has a high utilization of used parts, you'll have a difficult time negotiating for OEM. The best thing you can do here is educate the consumer and be sure you understand the policies of your customers' insurance carrier. Some carriers do take their insured's desires into account. Insurers, like us shop owners, are doing all they can to retain a solid customer base. Equally important is to know your state insurance department regulations regarding the use of LKQ or aftermarket parts.

The only advantage that we, as dealer body shops, have is in regard to our mechanical labor rate. Insurance companies in my market pay the posted labor rate for our mechanical department. However,...

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