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DAE know that insurance shops only make money on about 40% of jobs?
Heard this from a guy who ran a body shop in Denver for 15 years. He said most insurers pay a labor rate that barely covers overhead, so the profit comes from parts markup and paint materials. I looked it up and the average door rate in Colorado is around $56 an hour while my shop needs $85 just to break even. How are the rest of you dealing with this? Do you just walk away from certain insurers or do you eat it?
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williamhenderson3d ago
What's your mix of insurers right now? We dropped two of the big ones years ago and it hurt for a bit, but taking jobs at $56 when you need $85 is just buying yourself a slow death. The math only works if you're moving enough parts and materials to make up the gap, and even then you're one comeback away from losing money on the whole ticket. Figure out your real break even per job, then walk away from anything under it, because the shops that stay open are the ones that say no.
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