| Reader Letters: Wages and DRP Relationships |
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| Monday, 23 April 2012 14:27 |
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Toronto, Ontario -- April 23, 2012 -- Recently we noted that although the number of people in the U.S. collision industry was shrinking, the average wages being paid were higher. We asked readers what they thought, and if they had noticed a rise in wages in their area. Here’s one reply:
Here in B.C. the wages have increased over the last ten years with staff now getting paid a fair wage for what they do. Techs are now comparable to other trades in our area. They are on the lower end of that scale, but the gap in the wage difference between trades has gotten smaller.
Our door rate is dictated by ICBC. Most other trades charge out at about $20.00 per hour more than we can, so the profit margins are getting smaller. Our job as managers is becoming more involved as we try keep a good balance of profit. I am a firm believer that if you look after your staff, they will look after you in the long run.
Sincerely,
David Verity
Assistant Manager/Senior Estimator
Jack Schultz Auto Body~CSN
Prince George, British Columbia
Another reader recently reached out to us to ask what happened to recommendations based on quality, service, honesty and integrity?
I am writing today about my frustration towards the attitude that is present in our industry regarding steering of work based on impressions and financial agreements.
The impression is that if a shop has a fancy building with a fresh inviting office, it does proper repairs of good quality. I agree that a shop should be concerned about how people perceive them, but most important of all should be the quality and service, not the colour of paint on the walls.
Every day of the week insurers steer consumers to shops based on looks & financial agreements, rather than the quality and service. I know, because I am not on a DRP list or part of a network, so on a daily basis I hear “You are not on the list,” or “We cannot guarantee the repair or speed at which your car will be returned to you. We cannot guarantee your rates won’t increase if you use that shop.”
I’ve got news for the consumer. Your rates are going to increase if you have a at fault accident no matter who repairs the car or how much the claim is for.
The one I like the best is “We cannot guarantee the resale value of your car if you choose to go there for your repair.” Since when do insurers ever warranty repairs or resale values on vehicles? My experience is the shop warranties the repairs. If a consumer ever has a problem with a repair, the insurer always tells them to go back to the shop that repaired it, regardless of DRP.
Insurers use scare tactics to steer people to the shop of their choice. This isn’t based on quality, but rather the financial agreement they have with that shop or network of shops. What gives them the right to comment on my shop or the quality of workmanship based on your computer list?
The person on the end of the phone has not set one foot in my shop or most of the other shops for that matter. Yet they are making comments, both good and bad, based on the list. Nothing frustrates me more than an employee of an insurance company basically saying to an insured that my shop can’t be trusted with the repair of their vehicle because we are not one of the preferred shops in the area.
I have never had an insurance company call and say “We would like to send out someone to take a look at your shop and your repair process to see if you are qualified shop.” The closest thing to that comes from State Farm, who mails out a questionnaire. In fact, the only three kinds of people who work for an insurance company that have set foot in my shop are an appraiser, an insurance sales person, or an employee that has been in an accident.
Whatever happened to recommendations based on quality, service, honesty and integrity? That’s how we fill our shop every week, because we sure don’t get any referrals from insurance companies!
Robert Dumais
Streamline Collision
Barrie, Ontario
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| Last Updated on Monday, 23 April 2012 14:29 |
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Comments
I cannot believe the non-DRP shops have not considered joining together to enter a class action lawsuit against those insurance companies for the lies and deceptions told to the insured. Start asking for letters with those statements in writing and their attitudes may change.
One of the problems in the industry today is no two shops seem to trust each other enough to work together for a common goal, and the insurance industry preys on that. Quote
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