Repair Profit vs Replacement Profit

[Brent Deines]

This quote was part of a post from another thread.

I still struggle with how a company that does replacements can also do repair, for one to do well must be at the cost of the other surely.

Now if someone offered you $50 or $250 which would you take go one be honest. $50 being what you earn for repair $250 for replacement.

Actually I did repairs and replacements and found them to be very complimentary services. Most repair/replacement shops push replacements, but as I started as a repair tech I only recommended a replacement when repair was not an option.

It's difficult to replace more than one windshield at a time, but it's very common to repair several windshields at a time, or even repair one or more windshields while replacing a windshield. It also takes a lot more time to properly replace a windshield than it does to properly repair a windshield, and the profit margin for repair is much higher in a fixed location. With mobile work the profit margin is affected by several variables. When you add travel time and fuel expenses to a single repair the profit margin shrinks significantly, but with fleets it is often possible to do several repairs in one stop, keeping the profit margin in line with a replacement, or in some cases higher.

More importantly I found that by offering repair I saw a lot more customers, some of whom had damage that could not be repaired, so it helped my replacement business. By the same token, by offering replacement I also saw more customers, many of whom had repairable damage but didn't know anything about the repair option.

Over the years I have noticed that the busiest replacement shops also do lots of repairs, while the ones that struggle do very few repairs. That's not true in all cases of course, but it does seem to be a trend worth noting.

I believe there is a time to repair and a time to replace, not an either or situation. Always do what is best for the customer.

[screenman]

Very ethical But I am not sure it works like that in UK.

[Brent Deines]

It doesn't always work that way here either. In fact I hear all the time that glass shops think every repair is one less replacement. While there is certainly some truth to that, windshield repair is not going away, so for a replacement shop to allow a competitor to have all the repair work seems foolish to say the least. Windshield repair can be a competitive edge for a progressive glass shop or another nail in the coffin for a glass shop that is not willing to accept change.

It is also foolish to purposely do poor quality windshield repairs in order to get more windshield replacements. If a customer sees that you cannot do a good job on something as simple as a repair, it is very unlikely that he will believe you will do better at something more difficult.

I believe that if you do a good windshield repair for someone they will come back to you when they need a windshield replacement or any other service you offer, but if you do a poor job on a windshield repair it is unlikely that a customer will return to you for any reason.

[Matt Anderson]

Brent Deines, now I am sure we can be friends. lol. Great post.

[Matt Anderson]

The math is easy. Repair has very little cost other than man power. A $250 replacement might only bring $100 in profit after parts and supplies. Most replacement jobs have dropped much lower than that in our market ($175 to $190). I can do a lot more repairs in a day than replacements, and I don’t break a sweat.

I love repair and push any customer I can to “repair first replace only when necessary”. The real reason is that it makes me money.... my customers love me. I am not pulling a bait and switch, and they are in and out quicker with a great repair. My customers come back time and time again.

Believe it or not we do push repair. That is why we feel like outsiders in the Glass industry. No bait and switch, No over billing, No steering..... just quality repair every time. Yes, Novus protects its patented equipment. Any smart company would.

I will not argue with any of you about dry out. What ever you do, do it well. Just make sure it’s done. Come to the WRO and show it off.

[screenman]

Let me tell that the 3 big replacement companies is the UK do not use dryout systems. The last time I asked a replacement guy who had just been on a course how he dried the chip out he first said with a chamois leather, when I questioned him further he did not know moisture was a problem. The insurers insist on the replacement companies only repairing 20% of damage and I would say that is all they do. Personaly I think about 80% of screen damage is repairable.

We can get bigger profits in the UK for some screens. One insurer just paid us

[AGSS]

I have to agree with Screenman, I own a Repair and Replacement shop. I have been in business since the early 90s. I di at one time, a year ago, stop doing replacement and offered repairs only. well...we are doing both again!

I know several good techs here that work for large co.s, one of which has used transmission fluid for repairs!!! I saw this with my own eyes!! Why? simple, these large companies use repair as a hook to get you back in for a replacement.

Unethical..yes. Profitable...yes!

You may say 'The customer will see you do not do a good job at repairs and think you will not do a good job at replacement either' ....Nope, Most people I talk to here think repair is only a temporary fix until you can have the glass replaced! Lots of people do not believe me when I tell them repair is permanent. Why, because of the failed rate of repairs around here. And all the fly-by nite repair hacks that have come here and gone, what good is a lifetime warranty if you are only in biz for 2 weeks, then their kit winds up on ebay or in the local tell-n-sell. I saw an ad in the local shopper last night, " earn hundreds of dollars a day, almost new windshield repair kit for sale..be your own boss..I will show you how.." ok, Let me stop on this.

I actually do repair glass, I push for repairs, however the demographics of my area are such that you will see more non-repairable large break windshields, So why send these somewhere else? I have the infrastructure to make this money instead of sending it away.

-Chris

[CV Windshield Repair]

I also do repair and replacements however in the part of the country that I live in (Texas) most people carry high deductibles so many people have to pay for their replacements out of pocket. That being the case with so much competition the profit margin on most replacements is low. There is one shop here that advertizes rockchip repair for $15.00 and the second one on the same sheild free. There is no doubt that this is to get them in and try and sell a replacement.

[daytrader]

There is little earned income in replcment. There just isn't. To see what I mean. Call six auto glass places on monday for your make and modle car. Make the last call to be Safelite auto glass.

Example a few months ago. Martin galss wanted 635 bucks to replace the glass in a 2002 chevy silvarado 3500.I also had to bring it to them. Safelite auto did it for 122 bucks. In the folks driveway.

2004 Freightliner. Freighliner wanted 450 bucks. You had to take it to them. Safelite did it for 90 bucks. In the drivers driveway.

these could not be repaired and had to be replaced.

I just do not see the labor income available. Just mark up if you can get the job.

[toab]

Yuo guys are forgeting the partnership angle.I get people with unrepairable damage.U send/recommend them to a replacement shop that you have partnered with and the rep' shop sends you some repairs.I hope this works.