Greg continues on here to explain understanding and measuring average hours per repair order (RO). He then explains his procedure when it comes to preparing an estimate. Whilst there are procedural differences in each country, take from every part of this series that we share with you, positive things that you can apply in your own business. I implore you to not get hung up on the “but we don;t do it that way here!” We hope you are enjoyng this series and we would appreciate any feedback. Cheers Gavin
Let’s take a look at Part 5..
Hopefully you took time to discover your average billed hours per RO and made a graph from our last lesson to see how you are trending (see example chart below). The P-page binder is a good Saturday morning project.
FYI: As far as working some on a Saturday goes, a very wealthy guy gave me some great advice! He said, “In order to get ahead in life we must work more than 40 hours per week.” Along with that, not that I support this type of work style at all, but most billionaires like Jeff Bezos, Elon Musk & Bill Gates all worked 100 hours per week when younger. Otherwise, we must work harder than average person or we will just be just like them, ‘average’.
Now then, the best way to get paid for everything on the estimate is to NOT send your parking lot estimate & photos to the insurer prior to Blueprint. I see so many shops complain about insurer’s photo estimates. You are right, most of them are pathetic at best, but who cares? No one knows including us what the car needs, until all the damaged parts are removed. Most of us shops have it drilled into our heads that we must write a parking lot estimate for say $4,000. We do this after the customer pulls up, we have a discussion with them, look at the car, discuss some more, then click a bunch of things we think the repair might need, finally print out the estimate and then give it to the vehicle owner. Vehicle owner then talks to the paying insurer, insurer sends them a photo estimate link. After insurer receives the photos, the insurer then sends the VO an estimate with a check for say $1500. Now the VO contacts the shop wondering about a $2500 difference?
Stop the insanity, the shop, the vehicle owner, and the insurance, all three have done nothing constructive to get repairs underway!! We must do our best to stop writing parking lot estimates, it’s just plain crazy. I have heard shop owners say they will lose the job if they don’t write the parking lot estimate.
Try the process this way: If a customer calls you wanting an estimate, schedule a time for this. Don’t just let them show up at say 4:50 and you close at 5:00. Make an appointment for them, so you or your estimator can be ready!! Here is what to do when the customer shows up at your door: Greet them, get all their info, discuss what happened, how many were in their vehicle at the time of the accident, was anyone hurt, discuss child car seats, and show sympathy. Then discuss who the paying insurer is and how you have a relationship with that insurer, good or bad doesn’t matter as you still have a relationship with the insurer. Then after you have a good conversation, then and only then you can go outside and look at the car.
Take time to discuss the complexity of the damage and the possibility if hidden damage, sensors, calibrations, safety inspections etc. Maybe even open the hood if say LF light hit or open the door if side hit etc. Let them know you care about them, and their car being fixed correctly. Then go back inside, explain just how silly it is to try and write anything. Just shoot them price from the hip like, “That’s probably $2,500-5,000 to repair”. Then you ask them, ‘We have an opening say Feb 9 or Feb 16th, which works best for you to start the repair process?’ Then shut up and wait for a response! The next person who speaks is the first loser. Just understand this: We only get paid to do one thing and one thing alone, to complete line items on the estimate when we are fixing the car!! Everything else in the entire process, including supplements on the backside, no one is willing to pay us one dime. So, the best way to cut out waste and is by doing only value adding activities!! Next, I will discuss how we Blueprint a car first, to get all the necessary operations on the estimate and how to get a complete parts order.