The week of January 19, 2009
Survival Mode
by Dennis Liphardt
Here it is a new year with all the changes and surprises that occur each time we add another number to the calendar. On the larger scale people wonder will Obama be able to lead our country capably? Will there be anymore terrorist attacks to our country like there were shortly after George W. took office? Will our economy come back during 2009? Will our homes start to be worth what they were two or three years ago? Will the wars in the mid-east continue? Will we catch Osama Bin Laden and if we do will it make any difference?
On a personal scale a lot of people are wondering where the next meal is coming from. They are worried about their jobs, their homes, and all the bills they have to pay. They are also concerned about the price of energy (will gas hit $4.00 a gallon again?). If you are involved in the collision industry, you probably have your own set of worries and concerns. The biggest worry in many cases is where is the next job going to come from.
In the hallowed halls of the insurance industry nobody worries about the plight of the little collision repairer. Your problems are of little concern to them, just as their problems do not keep you awake at night. Insurers are worried about loss ratios, expenses, policy count, employee cost and of course how to write more business.
There is a battle on the streets for every collision repair job because It seems that a large number of repair shops will do just about anything to entice a customer into their shop for repairs. Each job is precious. Rebating deductibles has been a concern for many years, but I feel you will see even more imagination being used to attract customers.
In the areas that are hardest hit by the recession shop owners aren't concerned with aftermarket parts, they will use whatever it takes to get the job. There isn't time to argue about the merits of DRP programs or "going it on your own." Any job is a good job in the eyes of most shop owners. Of course many insurers are taking advantage of this opportunity to squeeze you a little harder because they also know you need every job.
It would be very easy for me to sit here in my little office and tell you what you should do, but I, like insurers do not have to live in your shoes.
Shops have been criticized for applying to be an AAA Michigan Express Service shop [read concierge], but which one of us really knows if this is the right move for the shops that have applied? We don't have to pay their bills. Shop owners who have taken a long-term stance against DRP programs now are begging to be appointed to many programs (yes Wade, you do have some deserters!).
I know some shop owners that have been around for decades. Their buildings and equipment are paid for, but they are worried about keeping the doors open. I know they are going to do whatever it takes to survive. And who can blame them?
Even the government is working against you. You will read in another article in this newsletter about a "Cash for Clunkers" proposal that could be part of the economic stimulus package discussed in congress. In the article AAIA is asking you to help defeat any proposal that would take older cars off the road because lets face it a large number of these cars end up being repaired in independent shops.
I don't have any wondrous ideas about what you need to do in order to survive this year of this recession. I wish I did. A little magic wand might help, but I misplaced mine around 1980. Maybe you have some thoughts on the subject.
NOTE: This editorial expresses the opinions of its sole author only and does not necessarily reflect the opinions of Autobodyonline, or any of its subsidiary companies, clients, or supporters.