[COVER] STORY
by Chasidy Rae Sisk & Alana Quartuccio Bonillo
Does the Consumer Know What You’re Worth? Auto body shops don’t have it easy. Keeping up with changing technology, trying to get through the volume of work with limited staff and contending with insurers consume most days, but those challenges are worth it for many repairers who take pride in what they do: Protect consumers by safely and properly restoring their vehicles to pre-accident condition. Your customers appreciate what you do, especially when you take the time to educate them, but do they really understand all that’s involved with repairing a vehicle and running a shop? Do they know how heavily shops invest their time, energy and funds into training, tools and equipment? Are they capable of “getting it?” Do they even care? New England Automotive Report decided to try our hand at “educating the consumer” to find out if they actually know what you’re worth. Our 10 consumers from New England states represent various age groups and careers, and they are all unaffiliated and unfamiliar with the collision repair industry; most indicated that their knowledge was limited to one or two interactions they’d previously had with body shops after collisions. We began by assessing their current knowledge on three topics: the length of time needed to learn the trade, the amount shops invest in tools, equipment and training and the all-important question of Labor Rate. After obtaining those responses, we provided a two-minute lesson on the industry and asked them to re-evaluate their original thoughts. Let’s find out what they had to say! One recurring trend immediately emerged during these interviews, namely that consumers rarely think about the collision repair industry – until they’re in an accident and need a shop’s services. Common expressions included “I never thought about it before,” “I have no idea” and “No clue.” A freelance writer/editor from Waltham quipped, “I know a lot of details about many things, but this isn’t one of them!” But what the average consumer thinks they know about this industry varies drastically. In discussing the amount of training needed to acquire the skills to repair vehicles, responses ranged from “not much” to a guess of seven years. “Well, I believe they should go through training, but how long do I think they’re actually trained?” a housekeeper from Montpelier, VT asked. “It’s probably along the lines of ‘here’s where everything is at… ready, set, go!’” Several participants suggested half a year seems like a reasonable amount of time to learn the trade. “If he’s doing it every day, I’d guess a minimum of six months,” guessed an internet provider technician from Boston. “If not, training probably takes closer to a year.” “Six months to a year,” agreed the Waltham freelance writer/editor. “At least two years” was contributed by a personal concierge from Ashland who added, “Cars are all digital now. They used to be about parts and just putting them in, but now it’s all computerized, so I imagine it must be more challenging.” “I’d think they need a two-year program to get certified,” offered a quality control (QC) specialist in the mortgage industry (Dover, NH). “Maybe four years if they want to be a master technician.” 24 April 2022
New England Automotive Report
A childcare provider in Salem gave the question a little extra consideration: “Overall, I think it takes about three or four years of active handson learning with plenty of bookwork to learn that skill. I imagine one has to be able to locate and diagnose problems and issues that may or may not be visible. Listening is a big part of observing, and for diagnostic purposes alone, it probably takes additional time to perfect that skill.” Additional guesses included three months, “roughly 1,000 hours” and “possibly five to seven years, depending on the skill level they’re trying to acquire.” Most consumers acknowledged the need for shops to invest annually in tools, equipment and training with estimates running as high as a quarter million dollars. “Somewhere around $25,000-$50,000 annually, depending on the size of the shop and quality of the machinery,” the Salem childcare provider surmised. “Once they are open, I’d say an annual equipment cost of $50,000 seems reasonable,” an occupational therapist from Braintree indicated. “Maybe $50,000-$75,000?” proposed a college professor from Bridgewater. “It’s probably in the thousands because I know that stuff isn’t cheap.” “They would need a lot of stuff like sanders, paint and tools, so it’s hard to say,” hedged the personal concierge, offering a guess of $150,000. “It could vary, but if it’s a small shop of four people, I’d say $100,000,” contributed a Boston construction supply manager. “I have no idea,” admitted the freelance writer/editor. “I’m sure it’s a lot though. They have multiple employees, overhead, etc. I’d have a hard time thinking it’d be less than $50,000.” “With tools and stuff, they’ve got to be spending at least $100,000,” the Boston internet technician began, adding, “Actually, thinking of all the things they need, such as the garage, sprayers and tools to mind it, that may be shortchanging them. It’s probably more like $250,000.” The Vermont housekeeper was the sole dissenter: “Hmmm. Well, it’s all repetitive work, so once they buy the tools, they shouldn’t have to buy them again. I don’t know the cost of tools or equipment so I don’t really have an answer, but I don’t think it’s much. I mean, it shouldn’t be.” Questions about the Labor Rate that body shops charge elicited a wide range of guesses ranging from $15 to $250 with an average of $97. “A little over minimum wage, so they can pay employees and afford their business expenses…I guess around $15 an hour,” the Vermont housekeeper provided the lowest estimate. “Since they need to pay for overhead and wages and still make a profit, I’d guess $65,” the QC specialist offered an opinion. “I have no idea,” the freelance writer/editor disclosed. “I’m not even sure what I get charged regularly, so I’m guessing it must be at least $75 an hour these days. Auto body work is just one of those things…I don’t really shop around or negotiate; I just have to pay for it when it’s needed.” “It’s quite involved between the labor and what they are fixing, so