Use Your Clout, You Lout: Labor Rates Hobbs 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.

Proteus Corp
(505) 275-3013
10010 Indian School Rd NE
Albuquerque, NM
Arch Of Leadership
(505) 797-8881
8224 Louisiana Blvd NE Ste D
Albuquerque, NM
Diversified Management Svc
(505) 296-5432
10701 Lomas Blvd NE Ste 107
Albuquerque, NM
Multitek
(505) 889-3703
2400 Comanche Rd NE
Albuquerque, NM
Pecos Management Svc Inc
(505) 323-8355
7901 Mountain Rd NE
Albuquerque, NM
Advanced Data Systems
(505) 899-6441
6132 Flor Del Sol Pl NW
Albuquerque, NM
Consensus Builder
(505) 254-3942
1412 Morningside Dr NE
Albuquerque, NM
Smart Use Llc
(505) 888-1722
1211 Roma Ave NW
Albuquerque, NM
Pillar Advisors
(505) 982-9355
1850 Old Pecos Trl Ste K
Santa FE, NM
Jan S Humble Consultant
(505) 291-1151
2801 Mary Ellen St NE
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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