In Business for 50 Years this Week!
Lloyd & Sandy Giles started Giles Midtown Auto Body 50 years ago this week! If you check small business survival rates you will appreciate how impressive that number is. More importantly if you talk to the people of Elrose and surrounding area about the impact that Lloyd and Sandy have had you will be even more impressed! I hope that we can get Lloyd and Sandy to share some of their story in the next short while but for now if you have a minute, send them an email congratulating them on this achievement firstname.lastname@example.org .
Some Questions I had for SGI.
- I have had an inquiry about windshield claims and I do not know the answer, hoping you can help me. Are shops allowed to charge for pre and post repair scans on windshield replacement?
- It is my understanding that Glass Shops are charging $225 to recalibrate ADAS cameras on new windshields, are body shops allowed to do the same?
- I think I know this one but just to be sure, are shops allowed to invoice for sanitizing the interior on windshield jobs?
Answer I Received
Hi Tom – thanks for the inquiry. The auto collision agreement and the road hazard glass agreements are separate and distinct. We are working to harmonize the agreements as part of upcoming rewrites, to the extent practical (each industry has is represented by different industry associations). With respect to your first question:
Are shops allowed to charge for pre and post repair scans on windshield replacement?
No – road hazard glass claims are not required to be subject to pre/post-diagnostic scans by the OEM, and as a result SGI will not compensate for them (they are not collision related). In the event that a vehicle is involved in a collision and there is a combination of panel and glass damage – then yes, the vehicle would be eligible for pre/post-scans as per SGIs existing policy.
It is my understanding that Glass Shops are charging $225 to recalibrate ADAS cameras on new windshields, are body shops allowed to do the same?
No, the “$225 Allowance” is not available for collision repairs. Road Hazard Glass repair/replacement suppliers are permitted to mark-up sublet ADAS recalibration services 25% (up to a maximum of retail) – this is the same policy for accredited collision repairers, as outlined in the 2020 Appraisal Policy Manual:
The road-hazard glass team did develop an interim $225 “allowance” to help simplify the process for some smaller independent glass shop. It is my understanding that this is an interim process – it is not a formalized policy and there are a number of caveats for glass shops to use the policy (for example, if a shop elects for a $255 sublet – that is a fixed price for all calibrations from that point forward, cannot use the $225 (which only applies to one type of calibration service, either static or dynamic) on one claim then mark-up the sublet on another, regardless of the actual cost of subsequent claims. It is intended for use by a small shop that only completed windshield replacements with access to universal calibration services within a short distance of their facility where they have a negotiated price (it’s my understanding that it’s not used extensively).
This single price calibration is not used on the collision side as most repairs require multiple system calibrations (e.g. optical camera, LIDAR and radar) and the pricing varies widely. The glass team are reviewing the road hazard glass sublet calibration process as part of a new glass agreement (the initial term of the current glass agreement has lapsed and the partnership team is in the process of completing a review).
I think I know this one but just to be sure, are shops allowed to invoice for sanitizing the interior on windshield jobs?
Yes – it is my understanding that road hazard glass supplier may charge a sanitizing allowance (similar to collision shops).
Thanks, I hope this helps!
- I have a question? Has Sgi updated their appraisal manual since the 2020 edition? Recently I have seen a large amount of structural brackets and fender liners on claims that used to default to OEM and are now defaulting to aftermarket, as they were determined in the appraisal manual that they are exempt parts from aftermarket usage. Have you seen this or heard of this from others?
Answer I Received
Good afternoon Tom – we had our estimating team look into both the Mitchell Parts (Online) profile being used by shops and the MAPP profile being used by our staff estimating team and both are configured correctly. SGI has configured our after-market parts profiles to substitute “certified” AM structural bumper components when available from our AM Parts supplier(s)/LKQ Keystone. This change was made back in May 2017 (see attached bulletin).
Certified Diamond Standard structural bumper components are enabled for both shop and staff appraisers, as these parts have been tested/are certified to meet the applicable federal motor vehicle safety standards. “These parts are easily identified by the part numbers ending with the suffix of DS (Diamond Standard), DSN (Diamond Standard NSF Certified) or DSC (Diamond Standard CAPA Certified)”. Structural parts not ending in DS, DSN or DSC are not approved for use by SGI.
The challenge is that the shop that asked this question was not receiving Diamond Standard parts. What they got was a pale imitation of the OEM part.
Regarding AM Fender Liners, they are not included in our MAPP/Mitchell Parts lists:
If a shop has specific examples – claim numbers, it would be very helpful (I know we had some issues between the 2 applications recently – which we have recently resolved – I’m wondering if this could be related). Thanks, I hope this helps.
Then I received this Email from Dan Bernier
Good morning Tom,
It’s that time of year…Christmas time! So that means there is an increase in the amount of parcels being shipped…plus add the current lock downs (sigh)…so this means that we know there will be shipping delays over the next 4-6 weeks. I figured I’d give you a heads up as this may affect some of the Adhesive Templates shipping times. We will be sending an email to the SK shops that we have on file giving them the heads up as well.
The vast majority of all shipments to SK have been delivered in the 1-3-day range…but the odd one is taking 4-5 days. The shops that are in the “outer reaches” of the province are the ones that see the longest shipping times.
The good news is that vaccine info is starting to be positive…so let’s hope that by spring this starts normalizing for everyone!
If you have any feedback, please feel free to reach out to me anytime.
Thank you so much for your patience. This has been truly stressful…so we are doing our best to keep it all moving forward!
Adhesive Templates Canada
I-CAR continues to impress me with their information sharing. Did you know that they have a magazine called The Collision Reporter? This month’s issue is The Technician Takeover Issue, looks like a great read for your technicians, you can look at it here: https://info.i-car.com/onlinemagazine/November_2020/#page=16
Scott Shkopich from NAPA sends out a weekly collision industry web article document and this past week one is awesome! The topic is primarily about Human Resource issues and it is chock full of great information, you can check it out here I particularly was impressed with the I-CAR report on the Automotive Collision Repair Industry Knowledge and Skills Protocol, you can view it here https://www.i-cartraintogain.com/i-car-downloads/protocol-main-book.pdf I think this document would be a great template for job descriptions in a growing body shop.
I had a phone call from a shop this past week asking about solutions for a shop to capture photos for SGI claims. Currently he is running back and forth from the front office to capture every photo needed to document the jobs in his back shop.
The best solution I have seen is for your employees to use their cellphones to take pictures as they process the job and then send them to a folder on your front office computer so that you can grab them and put them into Mitchell connect.
Most shop management systems have this option included in their program but if you do not have a management system (understand that I think every shop should have one) there are options like Photoconnect which is a photo management system that uses a barcode system to sort pictures into folders on your shop computer.
There are no long-term contracts. The pricing for the PhotoConnect software is a $500.00 onetime set up fee + $125.00 per month licensing and support
Each APP is available for purchase on both the Android or Apple stores.
You can contact the lovely and talented Sharon Ashley at email@example.com for more information.
I have had a fair number of conversations about Mitchell software this past week. It appears that there are a number of issues with their software offerings, one of which is a “glitch’ that sometimes drastically changes the amount of paint and body material allowed on your estimate.
I talked to Neil McGregor about it and he told me that Mitchell is aware of the issue, but they have no way to replicate it, so it is a tricky one to fix. He mentioned that it doesn’t happen all that often but when it does it will dramatically reduce the paint & body material – especially on jobs with a lot of manual line entries. So, for now, watch your estimates and make sure that the paint and body material allowance is correct on your estimates.
Upcoming MVP sessions
Webinar #1 – Identifying, Sourcing and Locating Collision Parts
Challenges to locating parts for collision repair comes in many forms—complexity of the vehicle, rapidly advancing technological changes, and unusual market situations that impact availability. This training module delves into a variety of options that collision repairers have for locating collision parts necessary to complete jobs. Our first step is ensuring that the correct parts to order have been properly identified. Once this is complete, finding the part can be the next hurdle. We will discuss the features, functions and options several e-procurement tools for collision parts, both new and used.
Register Now – December 1st, 2020 (12:30-1:30 PM EST)
Webinar #2 – Paint Booth Optimization
Is your paint booth over-loaded, do you have a bottleneck at your paint booth, do you think you need another paint booth? This session will guide you to answering these questions, and solving these problems. Topics will include, accurately defining booth cycle time, how to measure it, and steps to reduce the booth cycle time by focusing on the operations necessary to improve the overall optimization. Plus, learn best practices for effective and efficient use of your paint booth.
Register Now – December 3rd, 2020 (12:30-1:30 PM EST)
Webinar #3 – Accurate Meticulous Disassembly
Accurate Meticulous Disassembly, its CRITICAL! Think about it… What causes technicians to STOP working and making MONEY$$? Missed damage, missing parts, miscommunication, decisions not made, all of which leads to lost technician productivity, multiple supplements, longer cycle time, and low CSI. This session will focus on the process steps of meticulous disassembly, along with proper cell setup, pre-disassembly activities, and error-proofing the process and achieve extreme accuracy. Don’t let inaccurate disassembly turn your bottom line into a FLATLINE!
Register Now – December 8th, 2020 (12:30 – 1:30 PM EST)
Webinar #4 – Estimating Refinish # 1
Focusing on blends, spot repairs and priming operations to grow your profits. This session focuses on some of the core refinish operations in collision repair. Core operations that frequently can be challenging to negotiate payment. We take a close look at the industry labor guides and how to use this information to construct a detailed estimate of record. You will leave ready to discuss more accurate refinish times, which will help grow your sales and profits.
Register Now – December 15th, 2020 (12:30 – 1:30 PM EST)
Webinar #5 – Building a Predictable Paint Shop Process (Not yet approved by I-CAR)
Are you getting different outcomes from your paint shop each day? Great work one day, not so great the next day? Re-do, re-work, and comebacks? Limited booth cycles and paint hours being produced? One technician’s work completely different from another? If so, Building a Predictable Paint Shop Process PPG MVP Virtual Learning Session will give you the tools to create your own paint shop standards. These standards will take the guesswork out of your process, boost productivity, eliminate extra searching, and increase employee morale.
Register Now – December 22nd, 2020 (12:30 – 1:30 PM EST)
Any questions, please let me or your local territory manager know!
National Account Manager – Canada