BEST PRACTICES FOR THE COLLISION REPAIR INDUSTRY

1.  Have daily production meetings with management and production staff.

2.  Use industry bench marks to assess performance of your collision center.

Paint & Material Cost (% of Total Sales)   - 4.5% - 5%

Paint Only Cost (% of Total Sales)  - 3.5%

Paint & Material Sales Per Refinish Hour  (Varies With Insurer & Market)   - $18.00

Paint & Material Cost Per Refinish Hour   - $10 to $11

Paint Only Cost Per Refinish Hour  - $8.50

Paint Only Cost vs Paint & Material Cost  - 68%

Solid Waste Cost  - $100.00 / Qt

3.  Implement a comprehensive marketing campaign.

a.  Lease Return Promotion

b.  Insurance Agent Handout

c.  Critical Accident Info Card Holder

Note: The collision center's contact information is imprinted on the front of the card holder. Inside the card holder, you will insert the business card for your tow company and the customer's proof of insurance. At point of sale, the card holder is attached to a marketing info sheet that promotes your business.

4.  Leverage Your Customer's Goodwill.

Suggested Reading:  Creating Customer Evangelist / How Loyal Customers Become a Volunteer Sales Force by Ben McConnell and Jackie Huba

5.  Educate your collision customers about the collision repair process, scheduling procedures and why promising a completion date serves neither the customer's best interest nor the collision center's best interest.

6.  Implement Cost Savings In Paint Department: DeVilbiss E-Z Liners.