Use Your Clout, You Lout: Labor Rates Gallup NM

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.

John A Bjelke Consulting
(505) 450-6089
6000 Montano Plaza Dr NW Apt 15C
Albuquerque, NM
Rio Rancho Economic Devmnt Co
(505) 891-4305
1201 Rio Rancho Dr SE Ste C
Rio Rancho, NM
Action Coach New Mexico
505-798-2552
4801 Lang Ave. Suite 110
Albuquerque, NM
Multitek
(505) 889-3703
2400 Comanche Rd NE
Albuquerque, NM
Pillar Advisors
(505) 982-9355
1850 Old Pecos Trl Ste K
Santa FE, NM
Arch Of Leadership
(505) 797-8881
8224 Louisiana Blvd NE Ste D
Albuquerque, NM
Genquest Inc
(505) 246-2829
1805 Rio Grande Blvd NW Ste 2
Albuquerque, NM
Idea Group Of Sante Fe
(505) 955-0411
3600 Cerrillos Rd Ste 734
Santa Fe, NM
Synergy Group
(505) 266-3104
7604 Summer Ave NE
Albuquerque, NM
David Moore & Co
(505) 836-2297
7625 Willow Wood Dr NW
Albuquerque, NM
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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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