Between the Customer and the Repair

Five minutes before closing on a Friday afternoon, a middle-aged, dark-haired man comes to the front desk asking for an estimate. He says he has auto insurance, but is unable to recall the name of his carrier. You walk out to his late-model Mercedes. The damage is in the right front, moderately impacted, with a good chance of additional damages after the teardown.

While you're jotting down his license plate and vehicle identification number (VIN) on a piece of scratch paper, the man says that his driver's side window is also inoperable and has been stuck in the down position since immediately after the collision. He also indicates his vehicle is leaking oil. You ask him if the glass problem and the oil leak were caused by the accident. The man hesitatingly explains, "It wasn't like that before!"

After spewing out a 15-minute dissertation on the events surrounding the accident, he requests two additional estimates on unrelated damage. In the meantime, two other customers are in the lobby waiting to ask for a rental because their vehicles are a week past due. And, as if this weren't enough, the receptionist tells you your wife is on the phone, while your painter is motioning you over toward the spray booth to get more time to repair rock chips on a blend panel. Does this predicament sound familiar? The fact is, if you're not prepared for a situation such as this, you will find yourself out of a job-and possibly voluntarily. If you're the owner and faced with this situation, you just might wish you had become a plumber. Being an effective estimator while balancing the job of a customer service rep is difficult, which leads you to the question: What is effective estimating?

It's more than simply creating an itemized list of procedures-formatted in dollars and cents, parts and labor, to produce a final cost. It's also just preparing an invoice used for billing and a little bit more.

Some people have compared the collision repair industry to manufacturing: Both make products, needing labor and materials to build, and are processed through an assembly line. In manufacturing, as in collision repair, the host company must tell customers how much the repairs are going to cost, when they will receive them, and the specifications of the product. All of this information must be delivered with genuine empathy.

It's not easy to come by the type of person who can do this. Have you ever known a software engineer to have these people skills: Outgoing, kind, articulate and empathetic? Or have you ever known a customer service representative who knows how to repair the widget that his or her company produces? I would say no on both counts. Effective estimating requires technical and mechanical automotive knowledge combined with personal and business skills to formulate the link between the customer and the product. Fortunately for collision repair shop owners and managers, most of these skills can be taught.

Gaining knowledge through experience is the backbone of collision repair estimating. Nevertheless, this knowledge is gained through two separate avenues: On-the-job training as an estimator or technician, or through an insurance company's course program. Both avenues of experience are solid, yet differ in their approaches. To be an effective estimator, you need a taste of both.

Experience

Many years ago, I remember handwriting hundreds and hundreds of estimates, day in and day out. Back then, as an insurance damage appraiser, we took numerous classes on flat rate labor operations, overlap procedures, paint time calculations, refinish procedures, frame estimating and so on. There was a huge learning curve in composing accurate, hand-written estimates.

But the estimator at the shop had one thing on me-on-the-job experience. I had a multitude of body, frame and refinishing courses under my belt. The insurance company even had its own in-house body shop/training facility. Furthermore, I went to plenty of shops every day and saw the repairs in progress. Even so, shop estimators have the advantage. They are around autobody repair and painting all day long, every day. They know how skilled each technician is, how long the technician needs to complete a specific task, the "real" intricacies of each body repair procedure, and most importantly, they understand the technician's problems. Well, at least the good ones did. You just can't get this type of experience as an adjuster.

In contrast to the benefits of being a shop estimator, there is a down side, if it is your only area of experience. Managing a direct repair program (DRP) as an estimator is very similar to being an adjuster. Understanding insurance coverage, documenting all facets of the repair (such as unrelated damages, phone conversations and additional authorizations), knowing the variety of cost-saving techniques, and continuously implementing correct legal requirements are all an enormous part of DRP management. Many shop estimators with no prior claims adjusting experience often fail in these areas, which puts the DRP contract on shaky ground. To be an effective estimator, a broad understanding in both industries is needed to succeed.

During your rookie year as an estimator, you probably realized that a "nice sheet" is sometimes more than just body and paint. It involves removing or replacing some mechanical parts as well. After replacing numerous radiators, condensers, struts and lower control arms, you most likely discovered that these items all belong to larger mechanical systems, universal on all automobiles and frequently damaged in front and side impacts: Air conditioning (A/C) systems, cooling systems and suspensions.

Mechanical Knowledge

The A/C system is located at the front end of most vehicles, and generally consists of a condenser, compressor, dehydrator and numerous refrigerant lines. The system lies around the radiator support inside the engine compartment, with the condenser usually placed forward from the other components.

Air Conditioning

You'll need to know a few things about the system. Are you familiar with R134 or R12? These are refrigerants (freon). R12 is now considered and ozone depleting substance that was banned a few years ago. R12 was the standard refrigerant for cars manufactured before 1993.

Do you know what a normal refrigerant capacity is on most vehicles? For most vehicles, it's about two pounds.

If a refrigerant line is disconnected, what are the steps before and after the disconnection? Before removing any A/C component, the system must be discharged using a recovery system.

What is the estimated time to evacuate and recharge an A/C system? Approximately 1.5 hours.

Can you loosen a condenser without disturbing the freon? And, if the A/C is blowing warm, what should your estimate reflect? Check A/C system for leaks.

Most vehicles have a cooling system that is within proximity to the A/C system. Comprised of a radiator, reservoir, cooling fan and a water pump, its the radiator that takes the brunt of a front-end impact. Like the air conditioning system, the radiator and its components are commonly removed for accessing the radiator support, front rails and aprons. When should you pressure check the radiator, and how much labor is needed? What is the cost for coolant? Can you charge for bleeding the system when the radiator is being replaced?

Cooling

Again, you should know these answers. Pressure-test the system if you suspect damage to a component, usually indicated by one half hour of labor. The normal charge for coolant is $15 to $25.

"My vehicle is pulling to the right now," or, "It's not driving straight anymore," are common statements by concerned owners. So, to address these statements and ones like them, you need to answer a couple of basic questions yourself: Can a minor impact to a wheel (front or rear) create a front-end pull? Can a minor impact to the front or rear create a misalignment?

Suspension

Knowing how to check an alignment and understanding its measurements (camber, caster, toe, SAI, included angle) will and should be commonplace with effective estimating. Detecting suspension damage is critical in estimating, especially at the beginning of the repair. When overlooked, suspension damage can delay the established repair length or possibly "total out" an already repaired vehicle.

During the estimating phase of a repair, labor and materials are calculated giving the customer a repair length. During this phase, if the suspension was not addressed and was found to have damage later, the additional repair time would be considered a delay.

In the collision repair industry, we have two main organizations that train and certify: I-CAR and ASE. I-CAR has a variety of training courses that target every area of collision repair, starting with the basics like dent removal to more technical disciplines like air bag installation. As an estimator, I highly recommend taking every course.

Training

After completing all of the I-CAR courses and also having a few years of experience under your belt, you may be ready for a certification test administered by ASE. It has a certification test for estimators in the following areas: Test B6, Damage Analysis and Estimating, is issued twice a year and is good for five years.

Test B6 includes questions on every area of collision repair, from air-conditioning to diagnosing unibody damage. It's very thorough and kind of tricky, but well worth taking.

Today's modern collision facilities are run entirely by a multitude of software systems. It is not uncommon to find two or three estimating programs, a management system and an accounting application all linked together to efficiently control operations. Most collision repair shops carry at least one of the four main estimating software packages: Mitchell's Ultramate, Comp-Est, CCC's Pathways, and ADP's ShopLink.

Software Training

To be an effective estimator, know your chosen estimating software in its entirety, starting with inputting an accurate VIN, production date, interior and exterior trim code and every option the vehicle has before the estimate is written. Not only will the insurance adjusters and supervisors see this as a competency issue, you'll get the maximum dollar amount for any given procedure.

Every estimating software allow profiles to be set up for each customer type or DRP plan (i.e. labor rates, discounts and so on). Be aware of the total loss threshold. Learn how it works and check it frequently on all repairs. Know how to implement betterment, cost markups, and how to check for alternative parts.

A note about estimating proficiency: Know your procedure pages (P-pages), which are a specific part of estimating software packages-they vary from database-to-database. Many estimators rely solely on the abilities and efficiencies of their application, which can definitely lead to a loss in revenue. It is a good idea to refer to the P-pages on every collision procedure to know exactly what is and what isn't included in the flat rate. Remember, if the procedure is necessary, not included in flat rate and can be documented that it was completed, you must get paid for it.

As an estimator, being organized by prioritizing your work is absolutely critical, and is a big key to being effective. Estimators handle numerous repair orders, phone calls and situations that require their presence. Making the right phone calls at the right time, completing supplements promptly, and keeping with every DRP guideline on either procedure or timeliness of action is very difficult. Handling a volume of customers skillfully and knowing your priorities is very hard to teach and is where many estimators fail.

Prioritization

Prioritizing is the most important thing you can be taught as an estimator. Becoming good at prioritizing can only take place by understanding the importance of the many tasks that you complete on a regular basis. Once the importance of the individual task has been determined, only then can you design your list of "things to do" on a daily basis.

Writing priority lists every day will help you organize your day, focusing on what is truly important. Hopefully, your list is detailed and comprehensive. From phone calls to new authorizations, to ordering a part missed yesterday, write everything down. Once the list is complete, prioritize it. Separate the list into two categories: "Important" and "Not Important." Take your time and review each item on both of the lists, determining which items are urgent and what aren't. Now you should have four separate lists of tasks.

Throw out the tasks that are "Not Important" and "Not Urgent." Also, don't spend much time on the tasks such as phone calls and meetings. These will get your attention on their own.

Hopefully you don't have many tasks under "Urgent" and "Important." Having any task that fits this prerequisite will create stress and undue worry, making you basically ineffective to do much else. The real trick is to continuously work on every task that is Not Urgent and Important. This list is about planning and prevention. You will be at your most effective here, accomplishing a great deal, with very little stress.

This time management concept was introduced to me through a book by Steven Covey, entitled, "The 7 Habits of Highly Effective People." As an estimator, I have learned that it's these subtle skills, like time management and prioritizing, which take many years to perfect. Hopefully, you have an owner or manager that is progressive enough to push this type of learning.

With all the core skills that experience, self-help books, formal training, and mechanical and software knowledge can give, there are still necessary intangibles that cannot be taught.

Learning must be continuous and ongoing, which is critical to keep up with new technology and varied customer needs. There is only one true constant in life, and that is change. Being prepared for change can make your job as an estimator much easier, but it's nice to have a little luck too!