(Source: BodyShop Business Facebook Page) Sampling of Body Labor Rates Across the Country
“And those differentiated skill sets justify unique rates and associated charges. “A lot of that is internally making decisions on how you approach repairs – finding tangible ways to differentiate your business and maybe aligning with certification programs that promote a specialty, ensuring that you have to have the skills, training and equipment in order to do certain tasks,” Schulenburg said. There are some things, however, that Schulenburg said shops can do to make up for it, such as distinguishing themselves in their particular market. And those two things don’t necessarily align, and it has impacted labor rates and the control insurers have over directing work and getting to consumers and being involved in the decision-making process.” “The reason is because you have two segments of the industry that have opposing objectives: insurers who are trying to mitigate costs to the greatest degree possible, and independent businesses providing services at a profit. “Labor rates are still incredibly challenging in the industry,” said Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS). Making Strides?Īlthough some believe the collision industry has made strides with regard to the labor rate, most believe it is still much lower than it should be. The question is, can anything be done about it? With car counts down during COVID-19 and the discount-by-volume business model struggling, can the industry make strides in getting paid more fairly? If not, why are we talking about it? Down the rabbit hole we go. The problem is when that effort to mitigate cost robs the body shop of the ability to make an acceptable profit and denies the consumer of a quality, safe repair. Ninety percent of the time, insurers are paying the bill, so they’re only doing their job by trying to mitigate costs. That third party, of course, is the insurance company. We all know the answer: the presence and involvement of a third party in the business transaction between a collision repair facility and a consumer.
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