What do you think of flat rate insurance referals?

[splitpit]

I'm with you Tooldini. A shop would be foolish to not do insurance referal work. It's easy money. It's not complicated. There are no "hoops to jump through". There are no "games" to play. In the age of cell phones, there is no "sitting around waiting for the phone to ring". I get referal calls all throughout the day while I am out working jobs. How freaking hard is that? I don't have to make call backs and I am that live person answering the phone.
I just take the call. Do the job. Bill the insurance company. And deposit the checks! LOTS of them! Does that sound difficult? LOL

[mrchip]

I'm going with jeff on this one..I don't sit around "waiting "for them to call I have my other work also but when the phone rings and they give me work I take it ...do a good job and make a new customer and get referalls from them down the road..E direct is easy and in a couple weeks when I turn on my computer and check my balance its bigger than the day before..I love direct deposit..

[Glassdoc]

Well, I did that also for the first 8 years.. But then, I bought a product called: Windshield Repair Marketing by Ron Ipach. I would suggest everyone look into this. Ron is a windshield repair tech/owner.. But he decided there had to be a better way to make a living doing something he enjoyed. So he researched and hit the pavement and researched some more for several years until he developed a method to boost his business more than 300%.
Long story short, his methods work. He despises car dealerships, insurance companies and other repair shops that do not charge what our services are worth. Here's a link to his site. http://www.cinron.com/index.asp
I know,he is definatly on the right track to making money.. And it is working for me.. I don't need the Insurance Companies pittance pay, when I can get what I feel is adequate from my customers.
And just so all of you know.. The same job that Safelite sends you out to do, paying what $63.50 maximum. They charge the Ins Co's $79.95 to send a Repair Medic out to do the repair.. And bill for the networking paper trail.. Who here thinks a Safelite tech is $16.45 more qualified to do a repair than you are?

This topic was covered several times thru the years. But here is one of my favorite posts:

Retail work is the most profitable business to solicit. Don’t get caught up in the “free repair” marketing efforts.

If the service you are providing is professional and you target the right market, it’s very easy to charge $69.95 for the first ding, $15.00 for the second and $10.00 for each additional ding in the same windshield and collect on a COD basis for every job.

Keep in mind that $69.95 is pocket change to the more affluent segment of our society. The small ticket item, the convenience of mobile service to their home or office, and the outstanding service and repair that you provide will override any concerns about the cost.

Always provide 2 copies of your repair bill so that they can seek reimbursement from their insurance company, if they so desire. Make sure that your service is easy to pay for – checks, credit cards and cash.

A large part of our retail work is repeat business, referrals from past customers and walkup customers while performing a repair. Since they already know that we don’t bill insurance companies or networks, very seldom is it ever an issue. If asked, we are always happy to explain that the insurance companies and networks don’t pay our going rate and they will probably be referred to a low priced alternative if they want to go through their insurance company.

Do we ever lose a job by not working through networks and insurance companies? Probably, but the increased income, along with no additional expense to EDI or having our prices determined by another comapny, more than compensates for the rare lost job.

Please keep in mind that your retail marketing needs to target those that can afford to pay COD and are not price shopping or looking for a free repair. There are many excellent marketing and promotion books that can help you build a successful retail piece of your business.

Regards,
Mike Burstein
Dominion Windshield Repair Inc
www.ChipDr.com
http://www.windshield-repair-forum.c...28-prices.html

[splitpit]

Sounds great but wouldn't work in my market area. Too many joes blows sitting on street corners, car washes, and parking lots, doing lousy repairs at cheap rates. Ron Ipach is no fool....he makes his living SELLING Marketing ideas! Duh!

[splitpit]

I've reread all of your posts Glassdoc. What I've found is that your ways and opinions may work well for you, but they are absolutely useless to me. I don't need some "computerized" device to do high quality repairs (in fact, I find that amusing) and if I charged as high a rate as you do I'd lose business in my market area. $104.95 for a 3 chip repair? Hell, for another $75.00 a replacement shop can put a new windshield in!

[tooldini]

Glasdoc I am sure your correct but in some areas and for some people that aren't into the sales side those ideas are not an option. The going rate in my area of michigan is $35.00-$45.00 per repair retail. Like split pit said I have all calls forwarded to my cell I answer all calls and turn down jobs I don't want. I turn down small cracks and recommend replacements right over the phone I have a great reputation in the lynx and harmon system. In michigan $1000 a week is very good money right up there with that autoworkers but much less work and hours. Isn't pennsylvania an inspection state were vehicle have to get inspected, I would think that would really make it easier to get retail work. If I tried to charge $69.99 for a repair they would just wait till it cracked and get a new one. I do very very good work but again the market makes many decisions for me. Its cool that you can get so much for 1 repair. I worked in a factory for 12 years making 13.00-14.00 an hour 50+ hours a week so for me $600.00-1000.00 for 30 hours is really good.

Jeff

[StarQuest]

Mike,

Have to agree with Splitpit on this one. I've tried billing direct in the past to insurance agents. Guess what happened? They didn't want to pay the $65 when network rate was at $50. I finally got my $65 but not without some major effort. With all the time and calls involved, I think I would have made more profit just charging $40 and going through the networks.

Yeah, you can get $69 or more excluding the 3rd party but at what expense?
Isn't time a expense?

[GlassStarz]

I learned along time ago not to pee on the electric fence doesnt do you any good and not fun and mentaly screws up your day.
Take the insurance companies money and move on to the next repair. If you arnt making $75K+ a year you are doing something wrong thats only $289 a day you can get so hung up on what you think your repair is worth that you miss the rest of the pie.

[maxryde]

Mike your advice is just so well spoken!!

It dosen't matter where you are there IS a high end market.

I learned to target those folks early on, it pays! Why deal with the volume when a large market of big buckers is right there all the time?

I admire you Mike and if even, on a small scale, I AM immulating your style!

I got to share, 2 weeks ago I was privledged to work on a 150' Yacht as a result of MY reputation 10 hours on a 28 million dollar "boat" and pay to boot!! (Woo hoo) I got 95 bucks per hour and a boat rife to boot!!

I love this business!!

[Glassdoc]

Your way of thinking "In this area, people won't pay $69.95 for a repair". Will always be holding you back.. In that very same area that you are referring to. People are buying automobiles at the same price that every U.S. State sells them for. Automobile pricing is not based on demographics. Its based on supply and demand. Originally, I too thought "there is no way people will pay $75 for a single shot repair". That is until I decided to top selling myself short. Who would have given thought to a Coca-Cola costing $1.49 12 years ago. Who would have imagine an automobile costing near $30,000 15 years ago? Why are you stuck on pricing that originated 10-15 years ago by the insurance company market and has not seen any increase due to gas, supplies, better training etc. Yes, "IF" a person shops around they can find replacement windshields starting at $160 installed and up depending on the model. But, if they can save 50% by doing a repair, don't you think they would? Imagine this... I am in the Philly burbs. At least 14 other Independent Windshield repair shops are within a 25 mile radius of my location.. Yet, I charge the higher prices, I service 87 dealerships on a weekly basis, I have several fleet accounts that want me to check the entire fleet every 3 months. And I make more than 75k a year.
Theres a market for everything.. If you place yourself in the flea market, you will only receive hagglers, price shoppers and bargin hunters. However, if you place yourself in the elite, must have market.. The sky is the limit to what you can make. If you do an Insurance job for $50, cost you $5 to get there in fuel, pay 33% in taxes, what have you actually made doing the repair? $30? My time and services are worth much more than $30 an hour.
But, you folks do what you do best.. Survive.. Your not getting ahead, your not any closer to retirement, and you are not really enjoying what you do.. When you decide to wise up, and take control of your destiny, you'll thrive, not survive.
And to Jeff.. You have a great reputation with Lynx, as stated. Do you know why? Because you do great work, with little to no call backs and you do it at their price.. LOL I have that same reputation out on the street, in the real world with the exception that I made $15-$20 more for those very same repairs and the customers are thrilled. I could care less if the insurance companies love me or not.. When it comes time to retire or if health issues cause me to quit early. Do you think those insurance companies will be there with support for you? Nope, they will be on the phone trying to find another sheep to herd around the field. You are nothing but a phone number to them.. Yet, you seem to think they are what keeps you going.. In a way, you are correct.. Keep doing work for them at their pricing and you will still be going out the door for another 20 years trying to earn enough to retire..