Is it time to do a Nancy? the issue with a parasitical industry
Just Say No” was an advertising campaign prevalent during the 1980s and early 1990s as a part of the USA “War on Drugs”, aiming to discourage children from engaging in illegal “recreational drug use” by offering various ways of saying no. The slogan was created and championed by First Lady Nancy Reagan during her husbands presidency.
To those of a “certain age” I am sure you all remember it, I certainly do. The “war on drugs” and different ways of saying “NO”.
For those that follow me on Linkedin, you might have seen that I have been applying a lot of pressure on quite a few Insurer’s and claims management companies alike. I have been reviewing contract’s from consumers and looking how wordings have changed to disadvantage not only the consumer but the repairer in ways that I firmly believe are illegal. I have also been reviewing contracts from “claims management companies” acting on behalf of Insurer’s and wondered “ at what point did they start earning more profit from repairing a vehicle that then repairer?”
I have been working hard with a lot of repairer’s that are really, really ,struggling to “SURVIVE” let alone “MAKE PROFIT”… and it has angered me, and not just by a little bit, but by a LOT!. I know of at least five different bodyshops right on the edge of “calling it a day” due to the unsustainability of their current business model.
Whilst having some proper “ding dongs” with insurer’s, and reading these contracts from” work providers” that are sucking the life out of the repair industry, all I can hear in my head is Grange Hill..
“Just say NO.. NO! Just Say NO…Just SAY NO Oh…” 
It struck me on just how strong the parallels are, and makes you consider how “addicted” the repair industry is to its “Dealers”. Who are there to give the next “Fix” of, “ we know the rates are crap on this job , but we promise to do better on the next” It is “swings and roundabouts” Yeh? Except It is’nt.
I have no doubt there will be those that will be critical of this article, but the contents are all true. If this industry does not radically change, or those that are in the industry do not radically change their business model, they will not be here in a very short time.
Brexit, parts supply issues, Ordering parts and not knowing what they are going to cost till you get them, trouble recruiting staff, trouble keeping staff, lack of cash flow, Crap contracts, Crap rates from Insurers, bottom line discounts, referral fee’s, rebates, and the ever growing contract that seeks to penalise the repairer by having them do all the work, be customer service / claims handlers reducing the insurers operation cost whilst increasing the repairers cost, and now the rising cost of gas. Are insurers comprehending this?
The economy is entering a state of “stagflation” That is experiencing a simultaneous increase in inflation and stagnation of economic output.
Some insurer’s do have foresight, they are building more bodyshops that they own. They “know” there is a capacity crunch coming and can see claims cost that will increase massively. They “know” what they are doing is the way forwards for them.
But what about other insurer’s? If I was them, I would be engaging with every bodyshop I can find, agreeing “gentlemens agreements” at much better “rates and terms” than their competitors to guarantee capacity. I would also be going direct to these repairers rather than using Intermediaries.
What about bodyshop’s ? You need create a new business plan, new marketing strategy, get NEW income streams and move away from your “dealer”. Most of all, you need to “Just say NO!” to any contract that does not make you profit and sustainable.
This months Bodyshop mag can be found here
