If someone would have said 10 years ago that DRP programs might come to an end and that OEM’s would control or steer collision repairs on late model cars with OEM certification programs and a telematics that person would have been laughed out of the conversation.
2020 is right around the corner and the proof exists that the above statement is coming true. It’s been rumored that more than one of the five biggest insurers are spending tons of money to strategize the end of their DRP programs. What will shops do to fill in the work they might lose?
That brings up the OEM certification model for serious discussion. If your dealership has a collision center, are you OEM certified in the brand that you sell? If not, why not? And here is a news flash, it’s going to be required. In certain instances already some warranty repairs and other OEM reimbursed services can only be performed in a certified collision center. The OEM’s have now realized the value in a program for retention of customers. This is the biggest development in the collision repair industry in the past 25 years.
Some programs require specific equipment to the tune of six-figure investment while others just need to make sure that you own equipment that is capable of fixing the car properly. Either way, understanding the entire process to get to the credential can be a huge challenge for a manager or fixed ops director.
Fixed Performance has the industry knowledge to analyze your dealership shop and determine gaps and feasibility for your shop to become certified in the brands that you sell. In the dealership world, the vehicle owner believes that the dealer is the expert. Yet some of the worst quality repairs come out of dealership collision centers.
Check your average RO dollars. If it’s not in the $3500 range your dealership is not fixing vehicles in accordance with OEM certification programs, or you’re not changing what you’re doing. Check your close repair order hard copies for repairs involving weld on panels. If your files don’t contain printed procedures for how to install those weld on panels, did anyone look up the procedures or verify that the panel was installed correctly? A properly done quarter panel replacement job today should be $7500- $10,000.
Call us for a free phone consultation. We can help your store become OEM certified and navigate the challenges. The ROI could be 20%-30% increase in profit from the same amount of work.
Aaron M. Sworden, Body Shop Specialist
Fixed Performance Inc.
Office (419) 433-8219
Cell: (724) 448-9550
Most dealerships have experienced a downturn in sales making profitability a challenge. For over 15 years our company Fixed Performance has helped reduce the dependence on sales getting more from fixed operations. We believe this makes dealerships bulletproof! Now we’ve expanded our consulting practice to include improving margins on warranty repairs. Our program Margin Plus helps dealerships gain needed gross profit on warranty. Check us out at www.marginplus.net or give us a call.
Rob Gehring, President
Fixed Performance Inc.
Cell: (419) 282-1351
Rob is President and Founder of Fixed Performance Inc. which he began over 15 years ago. His passion for customer care and helping others has assisted hundreds of dealerships with their fixed operations performance. His common sense coaching and training lifts people up as individuals and team members. With over 30 years of dealership management experience, he understands and respects the daily challenges of fixed operations. Placing a strong value in people and best practice processes always provide growth. His articles have been published regularly in national publications and weekly newsletters are read by thousands.