Profit through Process - Average Repair Costs!  Work providers (Insurance Co’s, Accident Management Co’s etc) continually speak of the average cost of repair. Average repair costs are a fact, they truly exist. 

Repairers often defend their repair cost figures using terms such as “My Average repair costs are going to be high as the repairs I’ve carried out this month have all been hard hit, prestige vehicles and no other repairer around here has the facilities to do what we do”

Averages are a fact and, as simple math's drives the accounts systems of every business in the land, average repair costs become a reality in our world of accident repairs. Where a repairer has a poor understanding of the mechanism that defines average repair costs, these costs then become a powerful tool that can be used in controlling an entire repair network. To the unsuspecting repairer with poorly appointed people & processes, they also become the rod that will beat them into submission.  The vicious circle continues to turn, and the tread mill of poor process – poor returns continues to choke the financial life from the business.

In reality, the average repair cost is defined through factors of 'Circumstance and Impact' at the point of collision i.e.  Type of Vehicle, Vehicle speed, Occupancy of the vehicle, road conditions, mechanical condition of the vehicle etc, the list is long and variable.

Is it possible for a repairer to improve his ranking within the ‘League Tables’ of work provision and average repair cost?

Within every company, two of the most vital elements are its ‘People’ and their ‘Processes’. Where the people have a Proven Competence and are Duly Qualified. Where they have a Direct Responsibility and a Robust Procedure by which to administer their responsibilities, the rod which once beat them, becomes less sinister and more of an accurate ruler by which to measure and reward good performance.  In turn it also provides the foundation on which to base sound business decisions to further improve performance, and in the majority of instances it will also provide a catalyst for change, within the company as a whole. 

The most fundamental element of being a repairer is to ensure that the repair specification accurately reflects the tasks, materials and components required to reinstate that vehicle, underwriting the Safety & Quality of the repair which in turn will ensure that the cost of repair is a reflection of its true value. The method of repair will always come before the cost.

Average repair costs are a reality, but Safety & quality must always be the driving factor.

James Clifford MIMI

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