This is an evolving process as we determine what we should charge for. There are systems available today that we did not have when I used to write estimates. Systems like PMC Logic will help you itemize the materials actually used on a repair. This makes it easy for the insurance adjuster and/or customer to see exactly what all materials were needed to repair the vehicle. However, if you do not use a system like this you must be certain to write everything that you use on the estimate. If we state exactly what we use and charge for it, chances are that insurance company will pay for it. Remember, they need to CYA too. If they can show their supervisor why they paid a certain amount for materials, this will make it easier for them as well. If fact, I have had several adjusters tell me that if the materials are itemized on the invoice, they will pay it. However, lump summing everything together in one line called materials needed, will not go far when the insurance company sees the invoice. Just like my Walmart story. To determine if you were overcharged or not, you need to see exactly what you were charged for. Once you see that everything looks right, you feel better about paying that amount. However, if Walmart gave us a receipt in one lump some, we would probably think that they were wrong.
Traditional
The way materials have traditionally been charged for is from your refinish labor. You take the total amount of refinish labor hours and multiply it by a determined number. We used to multiply it by 50% of the refinish labor, but with the increase materials costs, the number is usually higher now. For example, if the refinish labor is $40 per hour, the charge for materials will be $20 or higher for materials. So if you charged 3.0 hours to paint a fender and materials charge rate is $20.00, then the material charge will be $60 for paint materials.
What Is Not Calculated
What this method does not pay for is any adhesives, fillers, clips, etc. that you may use. With the price of these material, you can lose money if you’re not careful. Therefore, be certain to add the materials that are not included in the refinish labor time. Another thing that can cost you is not charging for all of your refinish time. For example, if no time is given to refinish a frame rail, you lose refinish time and material charges. If you overlook a half hour of labor (.5) this will cost you 20 dollars labor and 10 dollars materials for a total of 30 dollars. If you overlook something small like that 4 times a week that is $120 loss to the shop that week. If it happen more than that, then I think you can see how this could cut profits.
Charging For Materials From The Refinish Time
Let’s take a look at the same example that we’ve been working on and determine what the material charges will be. Were going to use $40 for the labor rate and $20 for the material rate.
Body Labor Paint Labor
Repair Hood Panel 2.5 3.0
- Deduct for paint overlap .0
- Add For Two-Tone 1.5
- Add For Clear 1.2
- Adjusted Paint Time 5.7
Repair Right Front Fender 2.0 3.0
- Deduct for paint overlap -.4
- Adjusted Paint Time 2.6
- Add For Two-Tone .8
- Add For Clear .5
- Adjusted Paint Time 3.9
Repair Left Front Fender 1.0 3.0
- Deduct for paint overlap -.4
- Adjusted Paint Time 2.6
- Add For Two-Tone .8
- Add For Clear .5
- Adjusted Paint Time w/ tri-c 3.9
Total Labor 5.5 13.5
13.5 is the refinish time
13.5 x 20 = 270 (if the material charge is 20)
So the material charge for this job would be $270.00
Auto Repair Medford says
June 16, 2010 at 9:36 pmThis is a great read for people who are looking to have their cars repaired, just so they know and understand how their estimates are done. Thanks for this!
Rinkesh says
August 4, 2010 at 11:34 amYou may have not intended to do so, but I think you have managed to express the state of mind that a lot of people are in. The sense of wanting to help, but not knowing how or where, is something a lot of us are going through.
We Buy Any Car