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Auto Repair Estimates – Nothing Happens Until The Sale Is Made

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by Donnie Smith

We have been discussing how to write an auto repair estimate.  We’ve reviewed how to treat the customer. Now let’s get down to what is going to make or break you as an auto estimator.

It’s All About Sales:

Many auto estimators understand that a big part of their job is to provide stellar customer service.  I don’t think there is a question about that.  However, it takes more than being a nice guy.  An auto estimator must wear many different hats and one of them, or perhaps the most important is to be a good salesperson.  Let’s face it, “nothing happens until the sale is made.”  If there are no sales, there is no business!  I know estimators may not like the thought of being a salesperson, but if you want to be a top performing auto estimator and bring a lot of jobs in for the shop, sales it is.

My Shop Sales Itself:

You may have the nicest shop in your area with all of the latest and greatest equipment, a comfortable waiting room with all of the extras, properly trained technicians, and provide excellent customer service.  However, this may not be what the customer considers when he or she decides where to have their vehicle repaired.  Sure, I agree that these things are important and it may help influence the customer to use your auto body shop, but don’t assume the sale has been made.

How Does This Benefit The Customer:

If you think about it, a nice facility does not really benefit the customer.  What if they think, this business is doing so good, they don’t really need my business!  Then they decide to help out the little guy…because they feel like they are making a difference or helping someone out.  So if you are the big shop, you need to let the customer know and feel their business is needed and will be appreciated.  You will also need to convey how doing business with your body shop is going to benefit them.  If you are a smaller shop, the same principles hold true.  For example, you may have the latest frame machine and measuring system; however, the customer may not understand what the benefits of that are.  They don’t really care if you spent xxx amount  of dollars on this equipment.  They want to know that by using this equipment, their vehicle will be repaired back to the factory specs and back to the pre-accidental condition so they do not have to worry if it will drive correctly or not after repairs.  They want to know that their vehicle will react the way it should if ever involved in another accident again to keep them and their family safe.  Then perhaps, understanding that you have the equipment to assure this is done properly and you have trained technicians to perform the work is a benefit.  So don’t sell customers on your business without conveying how it is going to benefit them.

Don’t Assume The Customer Automatically Knows The Benefits:

As an estimator, all of the insurance jargon, accident procedures, body shop repairs, etc. is an everyday thing to you.  It is easy to start thinking everyone knows the procedures and what to expect from your business.  However, this may be their first accident; or their first time at your shop.  They may not have a clue of what to expect from your business.  For example, you’re probably going to clean the vehicle after repairs.  Most shops do wash the car before returning it to the customer.  Why not make that a benefit?  Tell the customer that after their car has been repaired, you are going to have it washed and cleaned, which will have it looking better than it did before the accident.  That is a benefit, but they will not realize it until you tell them.  I’m sure that all of the shops would have cleaned the car, but they chose your shop because you are the only one that told them.  I am not saying that every customer is going to choose you because you mentioned a car wash, but let them know the things that will set your body shop apart from the other shops.  Don’t assume they already know these things.

What Are Your Priorities?

To make things happen in this competitive business work on you sales skills.  An auto estimator has a lot of responsibility on their shoulders and are caught in the middle of everyone (customer, insurance adjuster, shop manager, technicians, etc.) and are extremely busy.  But don’t put the sales skills lower on the priority list, as nothing happens until the sale is made.

Auto Success The Podcast – Dave Dunn Discusses Operating A Profitable Body Shop

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This is a podcast, “Auto Success The Podcast.” In this podcast Dave Dunn founder of Masters Educational Services shares some excellent advice of how to operate an efficient and profitable auto body repair business. To listen to the podcast visit:

Auto Success The Podcast

This was a great lesson or suggestions in several different areas of running a business.  In this podcast you will learn methods of how to:

  • Recruiting – Recruiting Brochures and Cards, Looking In Different Places
  • Organization – Performance Scoreboards, Sales, Cycle Times, Production
  • Estimating – Writing Thorough Estimates, Leaking Profit
  • Cycle Time – Keys to Keys, Parts Delays, Reducing Cycle Time
  • Sales – TSA, Total Sales Attitude, Awareness, Ask For The Order
  • Untapped Gross Profit

To learn more about Maters School of Auto Body Management visit www.Masters-School.com.

This is excellent collision repair training information for shop management and auto estimating.  Good things need to be shared…If you liked it, give it a thumbs up and share with your friends.

Auto Repair Estimates – Part 17 – What To Charge For Materials

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Itemizing Materials
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 Estimates – Part 16 – Adding For Two Tone

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Two tones are not included in the time given to refinish a panel. Two-tone means when there are two different colors on the vehicle. Again, we use a simple formula to determine the time to estimate for this operation. Before we discuss two-tones I am going to touch on edging and painting the undersides of panels. In all of the examples that we have had, we only repaired the parts. Normally when you repair a part the jamb or inside of the panel does not need to be repainted. However, any time you replace the part it will be necessary to paint the inside. For example, if we replace a right front fender and it pays 3.0, that does not include the inside. All you need to do is look in the estimating guide and it will give you the time to for edging or to paint the inside of the panel. The right front fender may state to add .5 for edging. This would give you a total paint time of 3.5 to paint the right front fender.


Now back to two tone. The reason that I mention edging now is this. Many new cars have different color schemes for the insides of the panels. Therefore, you should be able to add for two tone. I don’t know if shops are adding two tone for this operation, but it may be something to consider. To add for two tone add 50% per refinish hour for your fist major panel and 30% for each additional panel. Basically, it is the same formula as clear coat, just different numbers to plug in. However, this does not add the clear coat as tri-coat does. It is possible to have a single stage two tone so clear is not figured into the two-tone time.


If the first panel gives 3.0 to refinish the panel, you would multiply 3.0 x 50% = 1.5. Then you would add for clear coat by multiplying 3.0 x 40% = 1.2. This would give you a total of 5.7 hours to paint, two-tone and clear coat the panel.


Let’s take a look at the same example that we’ve been working on and determine what the refinish time will be with two-tone added.

                                                 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

Auto Repair Estimates – Part 15 – Add For Tri-Coat

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Adding for tri-coat or three stage paint is similar to adding for clear coat. However, you will need to know when to add for clear coat and when to add for tri-coat. Tri-Coat consists of base coat, mid-coat and clear coat, which is three different operations that you must do to get the paint to match. The mid-coat may be a pearl coat or a tinted clear to create different effects, including shifting colors and adding more depth. It may be very difficult to determine by looking if it is a tri-coat or not. To be certain if you are charging for the correct operation is to locate the paint code on the vehicle and look it up. The paint code is NOT part of the VIN number. It is a code that is located in various places on a vehicle. The p-pages will give you some general ideas of where these paint code labels may be located and will help you identify tri-coat colors.  

When adding for tri-coat you do not add for clear coat. The clear coat time is included in the tri-coat application. Use the same formula by deducting for overlap and for adding clear, except add 70% per refinish hour to your first panel and 40% to each additional panel.

Let’s examine the same example that we’ve been discussing with tri-coat.

                                             Body Labor   Paint Labor

Repair Hood Panel                 2.5                3.0
  Deduct for paint overlap                              .0
  Add For Tri-Coat                                      2.1
  Adjusted  Paint Time w/ tri-c                     5.1

Repair Right Front Fender      2.0                3.0
  Deduct for paint overlap                            -.4
  Adjusted Paint Time                                2.6
  Add For Tri-Coat                                     1.0
 Adjusted Paint Time w/ tri-c                  3.6

Repair Left Front Fender       1.0                 3.0
  Deduct for paint overlap                             -.4
  Adjusted Paint Time                                 2.6
  Add For Tri-Coat                                    1.0
  Adjusted Paint Time w/ tri-c                  3.6

Total Labor           5.5            12.3