Principles of Estimating

Jan. 1, 2020
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Have you read your car owner's manual?

Do you think anybody does?

At the size of a small novel, it's unlikely that someone would read the whole thing. It's more likely they would just read parts of it as needed.

Have you read your estimating system's procedure pages?

Do you think anybody does?

At the size of a small magazine, it is unlikely that someone would read the whole thing. It is more likely that someone would just read parts of it as needed.

So, do you read parts of it as needed? How do you know when it is "needed"?

Remember, you are writing an estimate for more than just a total of costs. You also are writing it for a plan of repairs. As you walk through the steps that need to be done for this unique repair situation, think about where labor costs are represented on the estimate for each step.

It may have its own labor amount as direct compensation (Replace Fender). It may have compensation included in another operation somewhere on the estimate (Replace Fender Side Marker Lamp). It may require its own line on the estimate for adequate compensation (Undercoat Fender). It may be compensated in your labor rate as a general expense (Wash for Delivery). It may be a free giveaway (Pick Up/Deliver Customer).

These are just examples and such judgment items vary by market, sometimes by job. You can probably think of better examples. The point here is to make good business decisions for compensation based on fact. The facts we have to work with are contained in procedure pages from each information provider, what is included and what is not. Of course, each system is a little different.

When performing R&I of an adhesive moulding, clean and retape is not included so a judgment amount would be added for direct compensation of this task. How about replacement? Is removal of the moulding or cleaning adhesive off of the panel included on CCC? On Mitchell? On ADP?

Is seam sealing included on that replaced part? Is bleeding the cooling system included when needed? How about draining and refilling the fuel tank?

On your estimating system, is Fender Liner included with Fender Replacement all of the time, none of the time, or by each model? Is R&I Wheel included with Quarter Panel Replacement? Where is your compensation for refinishing the Fuel Door or the Fuel Door Pocket?

Knowing answers to questions like these helps you make better business decisions based on fact. You may already know the answers for your estimating system. How about the other systems that you may have to work with?

You can check the procedure pages as needed. They are all available: Audatex, www.support.audatex.us/AudatexEstimating; CCC/MOTORS, www.motor.com; Mitchell, www.mitchell.com/support/kbcenter.cfm.

Keep a copy handy, either printed or one click away at your desk. You are already pressed for time so make the research as easy as possible. Look up an operation once an estimate, once a day, or maybe even once a week. Each exposure adds to your bank of knowledge. More knowledge leads to better decisions.

"The reason that worry kills more people than work is that more people worry than work."— Robert Frost

Bruce Burrow, AAM started writing estimates over 30 years ago, has worked for most of the information providers, and, as an independent instructor for the last 10 years, has trained estimators all across North America. He is ASE Master certified and an instructor for the Automotive Management Institute. Send questions, ideas, and comments that you would like to see addressed here to [email protected] and stay tuned.

About the Author

Bruce Burrow

Bruce Burrow has been in the automotive repair business for more than 30 years, and he has been ASE certified since 1974, currently with ASE master certification in collision repair. He has worked as a technician, shop manager and dealership service director. Burrow was a senior trainer for one of the information providers, and he is currently a certified I-CAR instructor. In addition to running an esti-mating seminar for the Automotive Management Institute (AMi), he is a freelance consultant for the automotive repair industry.

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