Another old story. However, the principles are still valid today. Decades ago, I ran a dealer’s service department that had a brisk business in tires, exhaust and detailing. Of course we also did valve jobs, differential overhauls and alternator rebuilds, but the high-margin sales were the former.
High margin. This is an attractive target for someone looking to start or expand a business. Before long, a national tire brand opened a store in town, a national muffler chain opened soon after that, and a local body shop started a detailing department.
Competition. Now I had some decisions to make. Compete aggressively to maintain margins, accept lower margins, or get out of those businesses. Of course, this is a trade-off between effort and reward. It can be expensive to add capacity or inventory, and there is no guarantee of increased sales. Eliminating those services also stops sales. Either way, it was going to change the way we did business.
Market forces. This is what drives our economy. Someone who can provide better value for the customer wins the business. Even if I would no longer compete, customers would still get a better value for that service. If I did choose to compete, I would need to equal or exceed value now in the marketplace. Either way, customers tend to move toward the better value, rewarding that business.
Now what does this have to do with estimating?
Our estimating system providers are competitors among themselves. This is good for our industry because they continually seek to increase value and win new, or repeat, customers.
Early on, we had only two major estimating books. Each would trumpet their features such as new model coverage, parts detail and footnote information. Customers would purchase books with the highest perceived value. Each publisher would add features or benefits to attract and keep customers.
With the advent of computers and a third competitor, there was even more incentive to improve. From those early days of worksheets, bar codes and “dumb” computer terminals, this part of the industry has changed dramatically, and for the better. Features unheard of 25 years ago have become ordinary, including VIN interpreters, pop-up helper windows and alternative parts locating.
How did these improvements evolve? Each of these businesses needed to decide what to change in order to increase value and attract, or retain, customers. Of course, this is a trade-off between effort and reward. It can be expensive to edit or add features to their estimating system and there is no guarantee of increased sales.
Because the marketplace (you) rewards the business (information providers) with the highest perceived value, wouldn’t it make sense for you to have some say in future improvements? You do, but not if you keep it to yourself.
Do you have an idea of how your estimating system could be better? This could mean a new feature to give you an extra capability. This could mean removing an irritant such as a bothersome pop-up or some unnecessary keystrokes. Any enhancement to make your estimating easier, faster or more complete would increase value to you and increase competitiveness for your estimating system. Everybody wins.
Talk to your estimating system representative, call them or send in your idea. Of course, there’s no guarantee it will be done, but if you do nothing, nothing is exactly what you will get.
Rumors abound that estimating systems only respond to insurance company demands. They are simply another customer, granted a bigger one. They are generally more organized, have a large number of users for ideas and make suggestions from only their perspective. However, information providers need to consider their entire customer base. Any decisions to change are not taken lightly.
Another place to suggest enhancements is through repairer associations. There is strength in numbers and a benefit in coordinating ideas. You have access to both local and national associations. Get involved. Working with your association representatives, enhancement suggestions can be refined, prioritized and presented formally.
Everyone is looking for a competitive edge. I was looking in that service department years ago and you are looking in your business today. Because your estimating system is a service designed to improve the way you do business, they are looking too. Get involved and help influence its future development. Good, honest competition can help us all.
“One is never as fortunate or as unfortunate as one imagines.”
– Francois de la Rochefoucauld
