Subcontracting certain steps in the repair process can impact a repair shop’s operations and bottom line.
Steve DawsonWashington, DC, Regional Manager for Jäger Engineering Officestopped by the podcast “The Collision Vision”, driven by Autobody News and hosted by Cole Strandbergfor the second installment in the Operational Excellence: Store Strategies for Success series to talk about the profit centers that some stores may be missing out on.
Pre-scans
Pre-scanning a vehicle identifies all the modules and systems in the vehicle that need to be recalibrated based on repair needs. “The sooner we identify a problem and create a repair plan for it, the sooner the car is ready and can be delivered to the customer,” Dawson said.
Strandberg asked how conducting pre-scans can impact a store’s bottom line.
Dawson said that, first of all, repair shops can bill insurance companies for this step. “We will have all the necessary printouts and documentation available,” he said. “We will not do this for free.”
All three major cost estimating systems – CCC, Mitchell and Audatex – have a feature to automatically add line items identified by the pre-scan to cost estimates, Dawson said.
“It’s quite normal to get paid for these pre-examinations,” Dawson said. “As long as you provide the documentation for these pre-examinations, you can include that line item in the estimate and make sure you get compensated for it.”
Pre-scanning allows shops to order all the electronic components they need, just like they order other needed parts like fenders and hoods, before starting the repair. This allows the repair to be completed faster and the vehicle to be delivered sooner, Dawson said.
Strandberg pointed out that this means that even shops that cannot get pre-scanning paid for by their insurance will see an increase in profit in terms of cycle time.
Pre-scanning also identifies ADAS components that may not have been directly involved in the collision, but may have been affected by components that were.
“One small thing, like a camera or an ultrasonic sensor in the bumper, can affect three or four other systems if it’s damaged. Catching it early can save a lot of money at the end of the repair,” Dawson said.
Alignments
Strandberg said wheel alignment is “uniquely polarizing” among collision repair shops, as some people say there’s no money to be made doing it themselves, while others say it increases profitability. Dawson said the latter view is a misconception, as repair shops think the equipment takes up too much space and insurers would prefer them to sublet it anyway.
“It’s that learning process,” Dawson said. “Collision alignments are different in many cases. Very few (shops) actually take the time to do the repair procedure for an alignment, especially a collision alignment.”
Many OEMs have published wheel alignment repair procedures that require several steps more than one to service, Dawson said.
“I’m sure if you’ve outsourced your alignments to a dealer or a tire shop in your area, at some point you’ve gotten the car back and someone there says, ‘Hey, there’s something bent and we don’t know what’s wrong with it,’ and you need to figure it out,” Dawson said. In that case, the shop doesn’t have the data it needs from the suspension to figure out the problem.
However, if the shop does the alignment itself, they can measure all the suspension components and determine which ones are damaged. This allows the shop to document the damage for insurance and order the parts before starting the repair.
“We’re getting our cleanest first hand right from the start, and that’s really the goal,” Dawson said.
It also avoids potential liability issues that arise when relying on a third party for wheel alignment. “I’ve heard horror stories of shops investing in wheel alignment equipment, mainly because the shop they took their cars to didn’t provide the quality they felt their customers needed,” Dawson said.
Driving a vehicle into an alignment system before writing up an estimate or repair plan takes about five to 10 minutes and provides all the measurements to determine which components are damaged, Dawson said.
“We can incorporate this into the repair plan immediately,” Dawson said.
In addition, this often reveals hidden damage on the side opposite the impact.
ADAS calibration
ADAS has been proven to reduce both the frequency and severity of collisions, but requires cameras and sensors, all of which often have to be calibrated and functioning properly, to work properly, Dawson said.
If these jobs are outsourced, they may not be carried out properly. This may affect the functionality of the vehicle when it is returned to the customer. In the event of a malfunction, the workshop may also be subject to legal action.
“This is not much different than if we replace three brake pads instead of all four. We own the responsibility,” said Dawson. “If we follow those OEM procedures, we don’t have to worry. We know we did it right. Having a tool that gives you the documentation, whether it’s through photos or actual measurements of the placement of those targets, is critical.
“This documentation is critical to making sure that what you’re delivering to your customer is exactly right. And if – God forbid – you get involved in a lawsuit because of it, you have documents that prove, ‘This is how we know what we did is right.'”
The space requirements for proper static calibration can vary between OEMs, Dawson said, but all calibrations require interior lighting and level floors.
It can also be expensive and time-consuming, Dawson said. He cited a “Who Pays for What?” survey that found that shops reported an average calibration cost of $235. A vehicle that needs to have five different systems calibrated, for example, might take 10 hours to do.
“For a car that has had a frontal impact, there are probably at least two, maybe four, five, six or seven,” Dawson said. “The equipment (on the vehicles) has become so much more sensitive that a lot of these extra measures are required.”
Key findings
Perform pre-alignment checks to identify problems early, reducing cycle time by providing the cleanest first sheet possible.
Perform pre-scans, alignments and ADAS calibrations in-house to keep repairs under control, which also contributes to shorter cycle times and higher customer satisfaction.
The alignment and calibration area is possibly the most lucrative area of your workshop.
