Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Survey Finds Trends in How Shops Are Charging – And Being Paid – for Shop Supplies Although two-thirds of shops say they use an invoicing system of some kind to charge for such items as clips and fasteners, foams and weldthrough primer, nearly one-third (30 percent) say they simply charge a flat fee for seam-sealer, and more than 1 in 5 (22 percent) say they calculate their charge for seam-sealer with no more than an educated guess.
These were among the findings of a “Who Pays for What?” survey last fall that examined shop billing practices (and insurer payment practices) related to shop supplies and aluminum repair. The survey found that despite a growing increase in the percentage of shops using an invoic-
ing system for supplies—66 percent versus 58 percent in the same survey in 2017—3 in 10 shops still just charge a flat fee for seam-sealer. “Many shops commonly charge that flat fee without researching how much seam-sealer they actually will be using on that particular job,” said Mike Anderson of Collision Advice, who conducts the quarterly “Who Pays for What?” surveys in conjunction with CRASH Network. “I recall a shop in Minnesota that was putting a rear body panel and a rear frame rail on a vehicle, and when they added it up, they had used more than $300 of corrosion protection items, such as seam-sealer, cavity wax and weld-through primer.” The survey found that nearly all shops (96 percent) charge for seamsealer, and 84 percent say they are reimbursed for it most of the time or always by the eight largest U.S. in-
surers. But according to Anderson, the amount being charged is not always correct. “At the end of the day, is the amount you are charging for these items adequate and appropriate? You
bead size,” Anderson said. Calculations such as this can be difficult, but Anderson recommends several tools developed by 3M that can help shops estimate the amount of seam-sealer that will be needed. A
Shops reported which factors they take into account when charging for seam-sealer (adds up to more than 100 percent because shops were permitted to select multiple responses), with number of tubes or cartridges used being the most common factor
have to keep in mind what type of seam-sealer you are using—self-leveling, two-part, sprayable, brushable, etc.—as well as how many tubes you are using based on the length and
comment submitted by a shop manager from Illinois while taking the “Who Pays” survey last fall supports Anderson’s recommendation. “The 3M CRiMP (Collision Re-
Think Genuine Subaru Parts. MINNESOTA
OHIO
Luther Bloomington Subaru
Ganley Westside Subaru
Bloomington
North Olmsted
(800) 451-5078
Toll Free (888) 850-0633 Direct (440) 788-7060
Direct (952) 887-0600
(952) 881-1787 Fax Mon 6:30-6; Tue-Fri 6:30-9; Sat 8-4 parts@bloomingtonsubaru.com www.bloomingtonsubaru.com
(440) 788-7085 Fax Mon-Fri 8-7 jtjoyce@ganleywestside.com
SOUTH DAKOTA OHIO
Brunswick Subaru Brunswick We’re focused on getting you the Genuine Subaru Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.
The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! 54
APRIL 2019 AUTOBODY NEWS / autobodynews.com
Toll Free (888) 460-7080 Direct (330) 460-7080
(330) 460-7082 Fax Mon-Fri 8-6; Sat 8-4 www.brunswickautomart.com
Courtesy Subaru Rapid City
(800) 658-3054 (605) 342-1178 Fax Mon-Fri 7:30-5:30; Sat 8-Noon parts@courtesysubaru.com