These comments have followed the open industry letter distributed by CARSTAR Corporate earlier in April that reiterated the fundamental law of economics: "When excess of supply (collision shop capacity) exists, buyers (insurers) take advantage."
The letter, which can be viewed online at www.ABRN.com/CARSTAR, also urges the industry to collectively stop the abuse by simply saying "no more."
The letter also states: " 'Responsible push-back' means standing our ground on the basis of the facts of our work. It doesn't mean threatening to give up relationships with insurers if we don't get immediate relief. But it does mean letting our insurance partners know, for example, that a partial blend on a panel doesn't reduce time and materials by 50 percent, and that many shops already deliver consumer experiences that meet and exceed their expectations — and that those of us who meet those standards will not sit passively by and comply with new rules that are not grounded in the relevant facts of safe and responsible vehicle repair or customer care in our shops.
"This kind of resistance isn't necessarily confrontational. It isn't personal. It recognizes the realities of the greater forces at work. But neither is it passive. At its best it is a continuous, fact-based countering of the other side that not only adds to, and eventually influences, their perspectives, but also, by its reasonableness, attracts support from the bystanders."
The letter said our industry must work together individually and through associations and national forums like CIC.
The passionate shop owners at CIC were later reminded during the meeting that expressing their concerns emotionally will not promote resolution, but rather cause many in the room to feel uncomfortable about attending future CIC events and participating on committees to work toward resolution of issues. While this is true, where is the attendance from those who are being "called out" for these abuses in the first place?
Typically the same insurance representatives are present at each CIC meeting, and I want to thank them for their commitment to the industry. I also want to apologize if they felt uncomfortable, even though we do have a long way to go before the issues that were presented will have any hope for improvement, even from many of their companies.
Checking the current rosters for the 2007 CIC committees there are only a handful of insurers participating. Where are participants from Progressive, Allstate, Farmers, AAA, 21st Century, American Family, Farm Bureaus, etc.? Without their commitment to work together for the benefit of the vehicle owner in an open and ethical manner, the progress to address these critical issues will be very challenging at best.
Unfortunately, the same poor participation level is present by our repair industry. I would wager that the vast majority of shop owners/managers today don't have a clue what CIC is about, or what it does in spite of their lack of support or attendance. These same repairers probably do not support or attend their local or state trade association meetings either. I would also wager they have very outdated training (if any) and have no idea what technical and business changes have occurred in the industry that affect their existence. They go to work each day and never see outside their own parking lots.
Some of us are old enough to remember the second Roberto Duran versus Sugar Ray Leonard boxing match back in 1980. What was billed as the rematch of the century turned into the "No Más" fight. After seven frustrating rounds Roberto Duran threw up his gloves in disgust in round eight and said, "No más!" (No more!). Sugar Ray, having lost his previous match with Duran by trying to go toe-to-toe, decided to use a better strategy — he "boxed" rather than "brawled" with the man with the "hands of stone." This better strategy took a very conscious effort on Sugar Ray's part to avoid his unsuccessful approach from the first match.
The solutions to our issues are not going to come from toe-to-toe fighting in a quest for immediate corrections. Instead, we need a better strategy and continued focus on the needs of the vehicle owners.
Vehicles themselves are going through major changes as well. Repairers need to be able to invest in the necessary equipment, materials and training, or we will not have the ability to repair vehicles to their pre-accident level. Most, including insurers, repairers and vehicle owners, do not have a clue as to what these new changes are or how they will affect the quality of repairs performed. For this reason, it is going to be a long and hard road ahead for many. If you are not going to participate in making these changes, call out "No más!" and get out. You will better the industry by doing so.
If you're unhappy with today's shop environment and you do want to participate constructively, then get involved. Remember, those who are present — whether at CIC, with state or national lawmakers, or through your associations — make decisions.
I am relatively certain of one thing — it will require more profits (incentives) to the repairers to be able to get ready for these changes. Yes, our current state of economics is a fundamental foundation for the free enterprise system. Please don't get me wrong; I am an absolute believer in the "free enterprise system." It just would be great if it were not just our industry (repairers) doing all the "free" stuff, while others profit to the highest levels from it.
Please send your comments, questions and potential discussion topics you would like to see addressed in future columns to [email protected] . For additional information you can also visit www.aeii.net.
