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The paint and materials compensation problem

Study shows widespread dissatisfaction with reimbursements among all industry stakeholders
Wednesday, August 8, 2012 - 02:23
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If you're a shop owner and you aren't happy with they way you're being reimbursed for paint and materials, you're not alone. A new industry survey found that 94 percent of industry participants are just as dissatisfied with current paint and materials compensation formulas – and that includes insurers and paint suppliers, as well as repairers.


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The study was commissioned by software provider ComputerLogic and conducted by Steve Lanza, managing partner at Richfield Associates, an Ohio-based marketing and research firm. Lanza interviewed collision industry professionals about paint and materials compensation issues last year to gauge how different segments viewed the issue.

Although the sample size was small (fewer than 70 respondents), the survey recipients were selected based on their amount of potential influence and their standing in the market (for example, many of ABRN's Top Shops were contacted for the survey). Respondents included "influencers" (association executives, industry publication editors and consultants), repairers (independents, MSOs, and dealerships), and suppliers (estimating software providers, paint/material manufactures, distributors, insurance companies).

Nearly the entire pool, 94 percent, agreed that the current paint and material compensation system uses poor methodology. Just how important paint/materials compensation rates as a concern varied by constituency: Insurance carrier representatives only rated the issue as a five on a scale of one to 10, while independent shops rated the issue as a 7.6.

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