How to Get More DRP Contracts
It is no secret that todays market is tough for body shops seeking to earn new business with which to grow. Consolidators are gobbling up shops, sophisticated accident avoidance systems are causing less collisions and more totals, fewer clients pays due to a sluggish economy, it can at times be a real grind. However customers are keeping their cars on the road longer so the business is out there.
Perhaps now you have decided to step up your DRP contract load. You might have some already on program but are looking for more, or maybe you are ready to solicit your first insurance companies. Or perhaps you competitor down the road is starting to really slide and the insurance companies have come to you to apply for inclusion in their program.
It can be a daunting task to assemble the information required for a DRP contract. The key things Insurance companies are looking for are:
- KPI's- Key Performance Indicators: average estimate cost, severity, cycle time or key-to-key, and alternative parts usage (APU). In order for a shop to remain in good standing with the insurance company and consequently remain on their direct repair program, the shop’s KPI must meet or exceed industry norms.
- Equipment- Having the right equipment and keeping it up to date shows a commitment to your facility and the speed with which to make repairs. Fixing modern cars with 20-year-old equipment is not only inefficient, on some models it is in violation of the manufactures requirements for a safe repair.
- Training- How well your staff, especially your technicians, are trained is a major differentiator between you and the guy down the street. Insurance companies may prefer to work with shops whose staff is I-CAR trained and welding qualified.
- Cleanliness of Facility- Remember your shop is a reflection of the Insurance company- they are sending their clients to see you. At a minimum you need to have a clean customer waiting area. Bonus if you offer amenities such as Wi-Fi or refreshments.
This blog only begins to scratch the surface of areas to consider and highlight when soliciting to insurance companies for DRP contract work. We will get more involved in future articles about training and new business techniques that you can use in your shop.
