Share this news

Good Estimates: Your Blueprint to Profits

—January 22, 2016
Good Estimates: Your Blueprint to Profits

An estimate is so much more than a price-to-fix quote. It’s a blueprint for the entire repair process, the key to customer satisfaction, and vital to your relationship with insurers. In fact, properly managing the repair process could make the difference between staying in a DRP or not.

What can go wrong?

Many factors affect the integrity of an estimate and hurt cycle time. The lead time to order parts or the need for supplements causes direct delays. Backed-up production flow and last-minute schedule changes result in indirect delays.

According to Mitchell Vice President of Industry Relations Greg Horn, "The average additional administrative impact cost of a supplement is thought to be around $225 because of the administrative costs and increased rental time impact. For other delays, we can figure on at minimum the average $31.95 a day for a rental."

The end result of imprecise estimating? Throughput is disrupted, jobs can get backed up, time is wasted and everybody loses: the shop, the insurer and the customer.

Still in doubt? Then consider this… In a survey of over 50,000 vehicle owners, Customer Research, Inc. found that increased cycle time has a direct negative influence on CSI in several key areas including whether or not customers would recommend the facility. At a one- to five-day cycle time 98.1% said “yes,” at six to 10 days it dropped to 96.9% and at over 10 days it dropped to 94.1%.1

A new way forward

The good news is that there’s a better way to accurately blueprint the repair process before a vehicle enters your body shop’s production stream.

The Mitchell solution

Mitchell Estimating helps you write accurate estimates right the first time. Mitchell Estimating, also known as UltraMate, combines accuracy and technology to provide reliable collision estimating data. Optional add-ons give you flexibility to enhance the solution.


 

Sources
  1. Guyette, James E. "Reversing the Cycle Time." SearchAutoParts. searchautoparts.com, 1 Jan. 2007. Web.

Terms of Use | Privacy Practices | Copyright & Usage | [+} Report a Problem
© 2018 Mitchell International, Inc. All Rights Reserved.
By accessing Mitchell.com, each user agrees that they have read and agreed to be bound by the
Terms and Conditions governing Mitchell.com and Privacy Policies governing Mitchell.com.