Use Your Clout, You Lout: Labor Rates Fountain Hills AZ

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.

Document Management
(480) 585-5580
9401 E La Posada Cir
Scottsdale, AZ
System Concepts Inc
(480) 951-8011
15900 N 78th St
Scottsdale, AZ
John Heath Co
(480) 368-1459
8149 E Evans Rd
Scottsdale, AZ
Technology Staffing Solutions
(480) 948-9322
7900 E Greenway Rd
Scottsdale, AZ
Lextra Limited
(480) 380-0373
9153 E Gary Ln
Mesa, AZ
Chad Management Co
(480) 609-8800
13950 N Northsight Blvd
Scottsdale, AZ
X Product Development
(480) 315-2774
7400 E Tierra Buena Ln
Scottsdale, AZ
Manhard Consulting
(480) 946-5550
14505 N Hayden Rd Ste 340
Scottsdale, AZ
Business Growth Strategies Inc
(480) 905-9384
7345 E Evans Rd
Scottsdale, AZ
Aftco Southwest
(480) 827-8384
3660 E University Dr Ste 1B
Mesa, AZ
Data Provided by:
 

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,...

Click here to read the rest of the article at BodyShop Business

BodyShop Business is
a Babcox publication
3550 Embassy Parkway
Akron, OH 44333
330-670-1234 • (FAX) 330-670-0874
Advertise      Contact Us      Subscribe      Article Index      Privacy/Terms of Use