PARTNERS IN REPAIRS

Part of the Problem

A 28

fter giving a presentation at a repair industry event in Melbourne a few years ago on the benefi ts of using more alternative parts in the repair process, a prominent repairer approached me to chal- lenge me on my theory.

“How are we supposed to make money if insurers force us to use alternative parts and take our margin away?” he asked. “We make our money on the dis- counts we get on new parts and we don’t want insur- ers to get any of that!” he stated angrily. I calmly re- sponded, “John [let’s just call him John], “what if I could show you, and the insurers you do work for, that you can both get what you really want – you make more money on parts while delivering a better repair cost for the insurer?” Let’s just say that John is now a strong advocate of both recycled and quality aftermarket collision parts and runs a very successful collision repair business across multiple sites.

A well-structured alternative parts model and pricing strategy makes incredible sense. No funny money, no smoke and mirrors and no magic tricks. It is founded on common sense, open and transparent communi- cation and a willingness to do things differently. That’s right, change. Like anything though, we all need to build the solution and change together, for the great- er good of all participants in this industry.

March-April 2018 • AUTOMOTIVE RECYCLING