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The DRP’s Effect on Profitability

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KEYWORDS drp Gross Profit
DRPs and Profitability
How varying DRP levels affect gross profit margins.

In the February edition of FenderBender, Wayne Griffin discussed the eight DRPs he handles for Walker’s Collision Repair, which credits its highly profitable $10 million operation to its prosperous relationships with insurance companies. Not everyone, however, feels that DRPs are a solid foundation for profitability. Here’s a look at profit margins for various levels of DRP participants.

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