What do you think of flat rate insurance referals?

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splitpit
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What do you think of flat rate insurance referals?

Post by splitpit » August 27th, 2007, 7:21 pm

Those that pay a single flat rate, regardless of the number of chips. Had a good one today - America First - $65.00 for first, $0 for additionals. It was a 1 chip repair so I can't complain but I'm glad it wasn't a 3 chipper.

Bois
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Re: What do you think of flat rate insurance referals?

Post by Bois » August 27th, 2007, 9:47 pm

I agree. I like the flat rate becuase there's usually 1 or 2 breaks. If there's more than 3 I inform the customer that the insurance covers only 3 and that I charge for any additional.
Dale...
No job is so simple that it cannot be done wrong.

StarQuest
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Re: What do you think of flat rate insurance referals?

Post by StarQuest » August 28th, 2007, 12:28 pm

Bois,

I may be wrong but I believe if you agreed to flat rate repairs for insurance or networks you would be held liable trying to charge customers for any additionals.

I would be OK with a $65 flat rate as long as they provided us with some type of contract (lets say at least 5 years at that pricing). We all know that's not going to happen!

What most likely will happen, insurance and networks will work us into their flat rate program.... then every year after will knock it down by $5. So in 3 years your back to where you started and possibly worse. JMHO.

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Re: What do you think of flat rate insurance referals?

Post by Glassdoc » August 28th, 2007, 2:28 pm

I personally think anyone that agrees to Insurance Company set pricing should re-think the idea of owning their own business. Whens the last time you called and told your agent what you would pay for your car, home, or business insurance? Thats correct! It will never happen.. Then why in the world, would you let someone that throws you scraps.. yes I said it.. Scraps. Dictate what they will pay you.. If you agree to a $65 flat rate. What is going to happen when the jobs start being 30 miles away? Your time, your gas, your maintainence on your vehicle are all worth something.. I charge what I charge.. If the Insurance Company dis-agrees because they feel my pricing is not competitive I then look straight at the customer and explain. I am here, you either know of my work or were referred by someone that does. My rates are x amount and your insurance company wants to "cheap the fix". Now, I can do the work if you agree to pay for it, then you can submit the invoice to your insurance and get back a partial payment. Or, you can use someone they choose and pay me for my service call (which is a flat fee of $25, if I do not do the repair).
If I offended anyone, take it in stride.. But the last time I looked. My name is on the checks that pay my bills, my advertising and anything business related. I get 98% of my work from referrals of past customers or being seen in public. The Insurance Companies don't give out crap for work.. We all know this.. So, why play their games to get scraps.. You could take that $65 and mark it up to $75 use the extra $10 to place an ad in the thrifty nickel equivilant free advertising book and make up for "waiting for the next insurance job" in less than 2 weeks.

splitpit
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Re: What do you think of flat rate insurance referals?

Post by splitpit » August 28th, 2007, 6:40 pm

For me, on average the current rates being paid to me on insurance referals are the same as or above the regular rate I charge for non insurance jobs.
So I can't complain. They are somewhere around 60% of my total business.
To NOT be a network member shop and to NOT accept the rates they offer would be a stupid move on my part. As long as they keep sending me customers, I'll keep accepting their $$$$. It's that simple.

tooldini
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Re: What do you think of flat rate insurance referals?

Post by tooldini » August 28th, 2007, 6:52 pm

I don't have a problem with flat rate because probably 95% of my insurance referrals are single so that would be $15.00 more than the normal $50.00. So on a double repair that would normally make you $60.00 you would now get $65.00 and a triple would only be $5.00 less. The only advertising costs I have are $300.00 a year for yellowpages. I average between 12-20 insurance referrals a week so for me that would be good. Who really knows what the future will bring you just have to change with the times. I am sure there are many cheaters out there that would hate the flat rate when they were charging triple repairs for singles or 2 pit fills LOL. Not calling anyone on here a cheater but they are a big part of changes like this. I know this was going on in Michigan thru Harmon, so I am sure it is elseware

Jeff

tooldini
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Re: What do you think of flat rate insurance referals?

Post by tooldini » August 28th, 2007, 6:54 pm

StarQuest makes a good point an agreement of some years to keep that rate would be nice.

Jeff

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Re: What do you think of flat rate insurance referals?

Post by tooldini » August 28th, 2007, 8:27 pm

Glasdoc and blindsquirrel you guys are going to be the minority on this one. You two just make no sense to me and many many others. What is wrong with grossing $600-1000 a week and working maybe 30 hours? having virtually no advertising costs. Unless your in a fixed location everyone is traveling to a job with a car. I love it when others don't want insurance work it leaves more for me. Basically you are telling an agent what you will pay for insurance when you call around for prices. Eventually you pay what someone says you have to pay you will never get what you want. Since you guys don't like insurance referrals you should leave the networks and spent time and money running around looking for work or pay for advertising. Not trying to be mean but get real. Everyone has there own thing and for me I have no problem with a flat rate,, I am sure it will be some time before everyone goes with it anyway.

Jeff

Glassdoc
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Re: What do you think of flat rate insurance referals?

Post by Glassdoc » August 29th, 2007, 2:29 am

Blind??? 13 years ago, I was one of the "few" select shops that did subcontract work for Safelite. I grossed more than $15,000 a year doing these repairs. then along came Repair Medics and "steering".. The referrals came to a screeching halt.. Lynx was the only network sending out anything, then Harmon came into the picture as did Omega and a couple others..
All of a sudden the rules changed. It was mandantory to have a live person answering the phones during business hours. And all referrals had to be called back within 45 minutes of the shop receiving them.. The old "if its bigger than a quarter" went out the window to "can you cover it with your driver's liscense"?
Safelite (local) has 35 repair medic vehicles on the road 6 days a week. They also have 35 hack repair people that could not fill a simple bullseye. So, bottom line is "Do I need to jump thru the hoops to make an adequate living"?
No, not today, nor tomorrow.. Sure, first year I missed the extra 15k income supplement. But have since made my name in the area and have made it one that people can trust. So, that 15k supplemental income that I gave away has more than doubled without having to play the "game".
Its my business. I don't sit and wait for the phone to ring to work.. I'm out on the road everyday (5 of them) by 7:30AM and my customers gladly give out referrals for me so I am not missing anything. I still, on occasion do an Insurance job. But you can bet its on my terms on my schedule. Last one i did was for NWBR, $85 repair for 2 shots. Already have the check in the bank, only took them 2 weeks. So, minority.. Yeah, you are right.. I own and operate MY business. I do not work for the likes of the networks, nor do I have to answer to their whims of the week.
And $600-$1000 a week in 30 hours? Heck if thats all I wanted to make a week I would only work 2 days..

splitpit
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Re: What do you think of flat rate insurance referals?

Post by splitpit » August 29th, 2007, 4:43 am

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

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