Significantly more shops now are using an invoicing system to bill for materials – at least some of the time – according to a “Who Pays for What” survey conducted earlier this year.
In 2021, a similar survey found that about half of shops relied strictly on the multiplier method (a flat dollar amount per refinish hour) to bill for materials, while about 19 percent used a materials calculator or invoicing system. The percentage using the invoicing system exclusively remains essentially unchanged, but now more than 40 percent of shops say they use a mix of both methods. That’s up from about 32 percent in 2021, and that means three in five shops are now using an invoicing system at least some of the time, 12 percentage points higher than eight years ago.
“I really think the large change we are seeing is due to the multiple increases in paint prices virtually all shops experienced since we last did this survey in January of 2022,” Mike Anderson of Collision Advice, who conducts the quarterly “Who Pays” surveys in conjunction with CRASH Network, said. “More shops are beginning to charge for paint and materials with a detailed invoice that shows exactly what was used on the vehicle.”
The latest “Who Pays for What?” survey, which can be completed in about 15 minutes, is now open through the month of April. It focuses on not-included body labor operations. Shops can take the survey HERE.
Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented.
Anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers can complete the survey. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released.
The results of previous surveys are also available online (https://www.crashnetwork.com/collisionadvice).
Collision Advice is an independent training and consulting firm featuring some of the most respected and experienced experts in the collision repair industry.
CRASH Network is a subscription newsletter offering news and information not available from other industry sources.
