Attempting to increase profit in any collision center is a struggle and I do not believe it is going to get easier anytime soon. I know most are looking at every opportunity to gain a nickel or dime in any area possible. That is what every shop should be doing to maintain profitability. One area that is often overlooked is sublet repairs. It is an area that is most of the time gray on an estimate with pricing based on an "average" for your particular market. If you look at sublet repair closely you will find it is an area with great potential for increased gross profit. There are two ways to increase your gross profit on sublet repairs – one is doing the work yourself and the other is through smart purchasing. Just as insurance companies work to negotiate their best price for repairs you should also work to negotiate your best price on the sublet services you purchase. One of the best opportunities to stabilize your sublet profits is to develop vendor partners that will provide discounts for loyalty and volume. Even if the discount is only 10 percent or 15 percent, it will give you an edge towards increasing your profits. Remember it's the nickels and dimes that will keep you profitable, so no discount is too small and very valuable to your success.
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