Partnering for PROFITS

I want you to think about a related subject for a second. How many times a day do you see or hear an advertisement for McDonald's? Twenty? Why do they spend so much money on advertising? You would have to have been living in a cave for the last 20 years if you didn't know McDonald's. Yet they keep doing it.

They are marketing — keeping their name in your mind. This is something that the collision industry has only effectively begun to do in the last 10 years or so. Obviously, your direct customers, the vehicle owners, need to know about your services and the quality of your repairs. Just as important is what the insurance industry knows about you.

Effectively marketing to the insurance industry is key in today's highly competitive business environment. Let's look at shoring up your insurance relationships. There are several areas you will need to address when beginning to develop relationships with insurance companies. They are:

• working with insurance agents;
• working with insurance estimators/re-inspectors; and
• working with DRP principals.

Working with agents

Here are a few tips.

• Look professional. You don't have to wear a suit and tie, but you absolutely must be neat, clean and prepared when you begin to visit agents.
• All agents want honesty. Do not "feed" them a line about an issue in your shop. Be direct and straightforward. If you make a mistake, admit it. Honesty will go far to gain their trust.
• Do not hard sell. This rarely works. You may need to visit an agent five times before you have the opportunity to have a meaningful conversation. Remember, depending on your market area, there may be 10 other shop reps trying to visit the same agents you are trying to visit. They will work with the ones that aren't much of an annoyance.
• When visiting agents, you must be able to recognize when they are busy and let them work. You cannot become an interruption. If possible, try to schedule an appointment with them when you first begin making contact. You will be able to spend quality time with them in these visits, and they can begin to learn about you without distraction.
• Invite them into your shop. They may or may not take you up on it, but seeing your equipment and facility will probably impress them. You take a great deal of pride in your shop. Show it off.
• Get involved in local community groups. Many agents are involved in these groups as well. You may actually get to know them better in an environment away from the office. If you share the same passion, you will more than likely become friends as well.

Work with estimators and re-inspectors

I have been in many shops when arguments began with an insurance rep over repair time written on a job or when there was a difference in opinion over repair methodology. Often times, the argument escalated and resulted with the insurance rep being politely, or maybe not so politely, escorted from the shop. This is not a good idea. In fact, it's a really bad one. It may make you feel strong at the time but will almost always come back to haunt you.

I remember one instance where a shop threw out an estimator employed by a major insurance company. A couple years later, the shop owner visited that same company to negotiate a direct repair agreement. Unknown to him, the person he was meeting was the very rep he had thrown out years before. Needless to say, he didn't get the deal.

There are going to be differences of opinion when working with insurers and their representatives. Deal with them the same way you handle (or should be handling) disagreements with your own staff. Be calm and direct. If you present your case from a position of knowledge with evidence and reasoning, more often than not, you will be able to negotiate an acceptable deal with the insurance representative.

You also need to keep educating yourself on the repair industry. Keeping up on all the latest repair methodology and products will help you negotiate from a stronger position. You are the expert; keep it that way. Remember, most insurance companies highly value education for their employees. You can be assured that most of the reps that come into your shop are pretty current in most repair areas.

Be flexible. Don't take a hard line stand when negotiating or reviewing a repair. Give and take on both sides will make the entire experience for both parties much more pleasant. You can bet insurance reps will report, especially to their supervisors, that you are willing to work with them instead of just against them.

Be a good host. Offering or providing an insurance company rep a clean quiet work area can go a long way to building a stronger relationship. Realize these people are doing their jobs just like you. Providing a pleasant environment to work from can be a great benefit to both of you.

Working with DRPs

Communication is the key when dealing with your DRP rep. Always be proactive when it comes to communication. Be willing to address any issue. Remember, there will be problems and bumps in the road when dealing with your DRP. No matter how good you are, there always will be issues.

The key here is how the issue is handled. If you are part of a large organization, I suggest appointing one person as the single point of contact for all issues through your DRP. This does not mean others in your group cannot interact with the rep, but giving the DRP a "go-to guy" is a real plus when an issue arises. In a small shop, most owners would be that guy, someone who has the authority to make a decision along with the wisdom and experience to make the right one.

Again, it simply is not acceptable to elevate any differences into an argument. Know your facts, and state your case from a position of knowledge, and you will typically be able to resolve any issues. I also suggest that you schedule regular meetings with your DRP partners to discuss performance from both sides. Most DRPs expect certain metrics be met and are open and willing to talk about them with you. You should do the same with them. If you have issues with certain staff members, service or payment issues, these meetings can go a long way to resolving problems before they become too large to resolve.

Final word: common goals

One point to always keep in mind when dealing with insurers, and indeed your own employees, vendors and anyone you do business with, is that all of us perform better when we understand what is expected of us. This can only be determined through open and frequent communication. When you determine your goals, make sure your staff understands the expectations of the insurance company as well.

Honesty again is extremely important in this arena. Charge for what you do, and don't charge for what you don't. That's pretty simple, but sometimes forgot-ten in the hectic work of collision repairs. Spot-check your own estimates. Doing so will keep your estimators in tune with what your DRP requires regarding estimating metrics. Understand what the insurance company needs, and do your best to give it to them.

Always maintain your integrity. Do not offer insurance company reps "gifts" in an effort to build a relationship. This will almost always backfire and cause other serious issues. Get involved in your industry. Attend national and local industry events. Get to know insurance people, and let them get to know you. It is much easier to communicate and negotiate with a person that knows and understands your company and its goals. Offer your assistance during these events. Market yourself.

Finally, and most important of all, be certain to take care of your customer. The most basic of all metrics is customer satisfaction. You must understand that insurance companies want to keep their customers just as they want to add new ones. Maintaining a high level of customer service, in all areas, is imperative in any DRP relationship and especially important in today's marketplace. Measure your customers' level of satisfaction, either through a service, or internally. Use accurate data to get better, even if it is tough to do. Your customers and insurance partners will recognize and appreciate it. There's a great chance they'll reward you with a steady flow of business for years to come.