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Is Your Auto Body Shop Missing Out on Hidden Profit Opportunities?

Subletting out certain steps in the repair process can have a negative impact on a shop’s operational flow and bottom line. Steve Dawson, Washington, D.C., regional manager for Hunter Engineering, recently discussed this issue on The Collision Vision podcast, hosted by Cole Strandberg. In the second episode of the „Operational Excellence: Shop Strategies for Success“ series, Dawson highlighted profit centers that some shops may be missing out on.

Pre-scanning a vehicle is a crucial step in the repair process as it identifies all the modules and systems that will need to be recalibrated based on the needed repairs. Dawson emphasized the importance of identifying issues early to build a repair plan around them, which ultimately speeds up the repair process and ensures customer satisfaction. Pre-scanning also allows shops to bill insurance companies for the step, as all major estimating systems have a function to automatically add line items identified by the pre-scan to estimates. This not only ensures proper compensation for the shop but also helps in ordering any needed electronic components before starting the repair.

Alignments are another essential aspect of the repair process that shops often sublet out. Dawson debunked the misconception that there is no money in doing alignments in-house, emphasizing the importance of following OEM repair procedures for collision alignments. By performing alignments in-house, shops can accurately measure all suspension components, identify damaged parts, and order necessary replacements before beginning the repair. This not only streamlines the repair process but also eliminates potential liability issues associated with relying on third parties for alignments.

ADAS calibration is a critical step in modern vehicles that require cameras and sensors to be calibrated for proper functioning. Subletting out this work can lead to improper calibration, affecting the vehicle’s performance and potentially exposing the shop to lawsuits. Dawson stressed the importance of following OEM procedures for ADAS calibration to ensure accuracy and customer satisfaction. Proper documentation of the calibration process is essential to protect the shop in case of any legal issues.

In conclusion, shops can enhance their operational flow and bottom line by performing pre-scans, alignments, and ADAS calibration in-house. By keeping these crucial steps under their control, shops can reduce cycle times, increase customer satisfaction, and avoid potential liability issues. The alignment and calibration bay may prove to be the most lucrative bay in the shop, highlighting the importance of investing in the necessary equipment and training to perform these tasks effectively. By prioritizing these profit centers, shops can optimize their repair process and achieve greater success in the competitive collision repair industry.

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