Last month’s estimating column focused on mechanical parts and offered a few suggestions about mechanical rate compensation. The article before that discussed structural parts and offered a few suggestions about structural rate compensation.
Once you figure what kind of part you’re working and what rate to charge for that work, the next step is to make sure it gets on your estimate. Of course, each computer estimating system does it differently. You should already know how your system presents rate information from your information provider. You should also be aware of how those “other” systems handle it just in case one of those estimates comes in your door.
ADP’s ShopLink contains a list of parts that it has designated as mechanical parts and are pre-stored with a mechanical rate. When selected, the mechanical rate will be automatically applied to the estimate for that part. On the estimate print, this shows as a “Rate 2” in the furthest right column. If there is a part that you have designated as mechanical, but ADP has not, change it. The estimate will show a “2*” and it will conform to your policies.
Replacing a structural part will be entered into the ADP estimate at the sheet-metal rate and will show Message Code 07. This message prints below the estimate damage lines and states, “Structural Part as Identified by I-CAR.” This is your notice to make a decision: leave it at the sheet-metal rate (“1”) or change it to a structural rate (“3”). The rate is easily changed but will have an asterisk to indicate that change.
CCC’s Pathways shows the MOTORS designation for mechanical parts with a lowercase “m” on both the selection screen and estimate print. Selecting the part, CCC inserts it at the body rate and you can easily change it. An uppercase “M” on the estimate indicates that labor will be calculated at the mechanical rate. The lowercase “m” still shows no matter which rate is being calculated. There is no asterisk (*) printed either way. Watch for this on Additional Operations (Align Wheels) and option-added labor (Add for AC Option) as well.
Structural parts are identified with a lowercase “s.” Again, when selected, they are entered at the body rate and can be easily changed. An uppercase “S” on the estimate indicates that labor will be calculated at the structural rate. The lowercase “s” still shows no matter which rate is being calculated. There is no asterisk (*) printed either way.
Mitchell’s UltraMate shows an “M” on the estimate parts list screen in the “Labor Type” column when a mechanical operation is selected. It is automatically entered into the estimate at the mechanical labor rate. On the estimate, an upper case “-M” is printed after the part description showing Mitchell’s designation, but the rate is determined by the “MCH” printed in the Labor Type column. If it is changed from the automatic rate, for example to “BDY,” there will be an asterisk (BDY*) showing the change and the “-M” remains.
When a structural part is selected, it is entered into the estimate at body rate. It is easily changed but will be noted with an asterisk in the Labor Type column. Mitchell’s structural designation is on the estimate with a “-S” printed after the part description no matter which rate is chosen. Frame parts (body-over-frame vehicles) are prestored at a Frame Rate. When selected, they are entered into the estimate at the Frame Rate and a “-F” is printed after the vehicle description indicating Mitchell’s designation.
Your system may also have additional labor rates available, including glass, diagnostic or electrical rates. These may be worth looking into, depending on your business operation. As with mechanical and structural rates, you would need to present a solid case for such rates. Dedicated personnel, equipment, training and space would all help support such specialty labor rates.
Get familiar with which labor rates are available to you and which ones you can reasonably justify. Decide which rates apply to which parts or operations according to the way you do business. Get familiar with how these different rates work on each estimating system you deal with. Yes, it takes a little more time and effort, but then most things worthwhile do.
