Because most of the businesses examined were auto
body shops, these receive the most emphasis in this package. There are both
similarities and differences between body and repair shops, some of which are
shown below:
|
Body Shops |
Repair Shops |
| 1. Insurance: |
Auto body is mostly reimbursed by insurance companies. |
Repair shops have some insurance work but
most of the costs are paid by the owner of the vehicle. |
| 2. Suppliers: |
Body shops buy parts primarily from dealerships. |
Repair shops buy parts from dealerships but frequently buy bulk
parts from other suppliers at lower costs and may also stock items
such as batteries, etc., on consignment. |
| 3. Order Size: |
Body shops generally buy what is needed for a specific job
but may stock some paint materials and small supplies. |
Repair shops often order common parts in bulk as well as lubricants and fluids. |
| 4. Customers: |
Body shops see their customers far less often. |
Repair shops are likely to have a steady clientele and a lot of
repeat and family business. |
| 5. Repair Order |
Body shops usually use estimate forms with their repair orders. |
Repair shops do not use the estimate forms seen in a body shop. |
| 6. Labor Charges: |
Body shops generally charge a different rate for metal, paint, and frame labor. |
Repair shops charge a flat rate for mechanical labor which is usually billed at a higher rate. |
| 7. Salaries: |
Body shops sometimes pay all or portion of their staff on a based percentage of labor billings. |
Repair shops nearly always pay an hourly wage. |
| 8. Inventory: |
Body shops generally have work-in-process but little parts, materials and supplies inventory. |
Repair shops usually have less work-in-process and stock parts, materials, and supplies. |