A reader writes:
"Virtually every estimate in the country, whether by an insurer or independent shop, is written on MOTORS, Mitchell or Audatex. This would be considered a monopoly in any other business."
Actually, these three are highly competitive with each other. Granted, we don't have the many choices that are available from other suppliers, including paint, welders and adhesives, but competition among themselves has made them all better. Of course, there is still room for improvement, but they have come a long way in the last two decades or so.
Before electronic estimating systems, we had a choice between only two publishers of estimating guidebooks. Although they were competitive with each other, collision repair wasn't nearly as complicated and estimating not nearly as precise. There were fewer vehicle manufacturers, fewer vehicle models and fewer vehicle components. Estimating information wasn't nearly as detailed. My Mitchell Collision Estimating Guide from December 1982 shows eight Procedure Pages. Today they have 46. Notes on "Refinishing Times" amounted to about a half-page. Today that section is five pages long.
Market-driven pressures have already increased parts coverage, paint choices and labor options among other enhancements. Of course, as competing businesses, they each have a different take on how to best serve their customers and that shows in their product offerings.
Free-market competition allows each shop to choose or change systems for any reason. Some make choices based on habit or familiarity. Others make choices on price, service, hardware compatibility, ease-of-use, perceived bottom line or some other determining factor. Competition demands that each information provider earns your business. A monopoly would not.
"The problem lies in the fact that no shop has anywhere near as much pull with these companies as even a small insurer when it comes to implementing changes to their products. They simply give us a take-it-or-leave-it attitude because they know that we do not have any other choice that is recognized by insurers."
This would refer to Requests For Review (RFRs) where a disagreement or question is submitted to an information provider for research and response. This also could refer to product enhancement ideas. The insurance companies have had an advantage here. They can dedicate resources to collect, compile and follow through on issues. Individual shops do not typically have that luxury.
That is changing. The Collision Industry Conference (CIC) Estimating Committee established a process for submitting RFRs in 2001. Using their Web site (www.ciclink.com) and several volunteers, anyone can submit a specific question to one or more of the information providers. This committee follows through and posts results on the site. Such visibility should add importance to their responses from individual shops. Watch for further support soon.
Another comment:
"Why don't the manufacturers of the vehicles provide the data to the shops and insurers directly instead of through these big three?"
Be careful what you wish for. In 1946, Glenn Mitchell compiled parts information from the few vehicle manufacturers at that time and put them in a different, but consistent format. Since each manufacturer had their own books and formats, looking up information was difficult, at best. A simple and familiar format reduced errors and made the process more efficient. Labor times were soon added and the rest is history.
Today, each vehicle manufacturer still produces part information in their own formats (and own language). This includes all mechanical parts, too. In a different format, they also publish warranty replacement labor. Sifting through all this data and developing supportable retail labor times are best left to dedicated database departments within each information provider as opposed to each individual shop.
Each individual shop, however, can help improve the data. It takes a little time and effort, but it helps everybody as information becomes more precise and accurate.
First, watch for part errors and labor amounts that don't make sense. Second, research the issue to make sure it is not just a misunderstanding. Finally, send in your question with good documentation. Send it to your estimating vendor or to the CIC Estimating Committee.
Step by step, we can each help each other by taking the time when something isn't right.
"Every journey begins with a single hop." — Kermit the Frog
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.
