Home » tomaszewski

Forum Replies Created

  • tomaszewski

    Member
    April 18, 2012 at 12:47 pm in reply to: auto body

    I would suggest researching your potential market, are there any MSO’s (Multiple Shop Operator’s), or franchises (ABRA, Carstar, etc…)? If they exist within the market you’re looking at servicing, not only will insurance referrels be difficult, but the margins will be lower as a direct result of their presence. What the insurance industry likes to refer to as PCP (Prevailing Competitive Pricing?. Another concern if you choose to pursue the business, Be sure it’s set up a as seperate business from your mechanical operation. If not the insurers will have a negative impact on your current margins, as they would expect you to lower your rates/parts margins to the PCP. By the way the PCP for the most part is established by the insurers and good luck getting the information they claim to use to compile their results. It truly is a different way of doing business and you’d be wise to treat it as such. Good Luck.