Use Your Clout, You Lout: Labor Rates Rochelle 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
AAA Automotive Services - Parkway Pointe AAA Auto Center
(217) 787-2187
3316 Robbins Road
Springfield, IL
Chicago Park Dist Valley Forge
(773) 229-0812
7001 W 59TH St
Chicago, IL
Greenplan Management
(708) 763-0089
123 N Humphrey Ave
Oak Park, IL
Business Network Sltns Cnsltng
(847) 272-7780
3384 Commercial Ave
Northbrook, IL
International Technologies Inc
(217) 892-8825
723 Galaxy Drive
Rantoul, IL
Rjb Enterprises Conslnt
(847) 215-6300
1 Messner Dr
Wheeling, IL
Risk Management Consulting Svc
(312) 587-7163
441 E Erie St
Chicago, IL
Managing Horizons
(708) 386-7766
173 N Harvey Ave
Oak Park, IL
Kylin Trading
(773) 927-6788
4222 S Pulaski Rd
Chicago, 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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