Thursday, June 16, 2011
Who Pays for What?
In a recent Collision Repair Industry Insight Magazine there is an article about which insurance companies pay for what regarding P-Page reimbursement. Looks like the collision industry is gaining because in the article it states the "never pay" percentage is the lowest since they started surveying the items in 1997. Although this looks like a gain, some of the items the industry is not getting paid for is upsetting. Abnormal test fitting of parts for example, if you are required to use an aftermarket part you should be paid to test fit it. Looks like most insurance companies believe hazardous waste disposal as well as tire and battery disposal is a cost of doing business because not many are stepping up to pay for it. My thoughts on all this is (most of you knew this was coming) is document what you do and assign a value you to it. Put that value on your invoice and let it stand. To settle your accounting you might have to "discount" or "coupon" the value to balance your invoice but the key is you have to document what you do to your customer's vehicle. Eventually the insurance companies will understand that you are providing a complete repair, your documentation will show it, and you will have served your customer to the best of your ability not the best the insurance company would let you.
Wednesday, June 15, 2011
Marketing To Gen Y's
Is your marketing working? Are you still relying on that yellow-page ad? Now is the time to look at your marketing tracking and see where you are getting the return on your investment. Times are changing; your business environment is changing as well as the age group of your customers. If you are still marketing the way you marketed ten or even five years ago you are behind the times. Digital marketing has grown tremendously over the last few years to meet the needs of the Generation Y market. The Gen Y market is the fastest growing and highest spending group in our history. They are a group that wants it now, they demand immediate results and the majority of their communication is done through mobile devices. In most cases you will spend less money and be more effective with a digital marketing program. Contact me at johnshoemaker1@cox.net for more information about digital marketing.
Tuesday, June 14, 2011
Don't Panic
I was reading an article on Jim Muehlhausen, author of The 51 Fatal Business Errors and How to Avoid Them and came across this statement that I felt was worth sharing.
“Decisions made out of panic and anxiety are rarely, if ever, the right ones. I’m not sure there is a single business book or consulting firm that has recommended running scared when times are bad. That being said, far too many business owners let fear affect them and their choices. Times are not great, but people still have money and companies are still spending. For every business that is closing, ten more are surviving. So, relax, focus and get smart about how to navigate the tough times. You may find you wind up doing even better than before.”
Sunday, May 22, 2011
Work Mix and How You Control It
Work mix can mean two different things. The first is the quantity of work you take from one source and the second is the type of work you bring in to your shop.
The first one is controlled by marketing. Working arrangements with insurance companies has weakened our industry because some have forgotten how to market and have let insurance companies control their shops. When the flow of work from that insurance company slows down the shop dies. I always recommend holding work flow from any entity at 22%. If work from any source exceeds that amount you need to market to increase the work flow from your other sources, ie; fleet accounts, customer pay work or other profit centers. Once you let any source overtake your shop you become a slave to the entity and they have captured your business.
The second is controlled by scheduling. Using the workload scheduling program within most management systems will allow you to schedule the type of work you need to keep your technicians busy. I have shop managers and owners tell me they have a full slate of hard hits but not much light work to fill in the gaps. My first question is "How did you schedule it?" Most take work as it comes and I completely agree that you need to "grab keys" but effective scheduling will eliminate the peaks and valleys.
The first one is controlled by marketing. Working arrangements with insurance companies has weakened our industry because some have forgotten how to market and have let insurance companies control their shops. When the flow of work from that insurance company slows down the shop dies. I always recommend holding work flow from any entity at 22%. If work from any source exceeds that amount you need to market to increase the work flow from your other sources, ie; fleet accounts, customer pay work or other profit centers. Once you let any source overtake your shop you become a slave to the entity and they have captured your business.
The second is controlled by scheduling. Using the workload scheduling program within most management systems will allow you to schedule the type of work you need to keep your technicians busy. I have shop managers and owners tell me they have a full slate of hard hits but not much light work to fill in the gaps. My first question is "How did you schedule it?" Most take work as it comes and I completely agree that you need to "grab keys" but effective scheduling will eliminate the peaks and valleys.
Subscribe to:
Posts (Atom)