oem price match
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Just starting to get into oem price matching with collision link. Was wondering how people have been entering these items on their estimates?… as oem or lkq with markup and note of price match. Also does anyone have anything to say about how the program works? good or bad
thanks, Nick
I’ve been using these programs for a long while.
Generally what we do is write the estimate as per the insurance company (some will go with OEM, some aftermarket). If they are aftermarket we see if they can be matched and go that way. As a technician it is the best scenario, working mostly with OEM parts everyday.
If I were a shop owner, however, I would reconsider matching. As an owner I would be making a lot more on mark up (say 40%) on the aftermarket vs. minimal markup on matched OEM parts. Only time I would match them is when availability is an issue, or it is a part that I know aftermarket is no good.
Just my thoughts though…
I have been price matching for many years but not with collision link..
As far as wordage on the estimate it depends on the insurance company and if they are a DRP or not.. I normally leave it listed as an aftermarket or LKQ item and add a note that the part was “replaced with OEM and price matched to aftermarket.” This can be used as a positive marketing tool when brought up by the customer.
We use an AM hold harmless agreement that must be signed and dated. It created a duty on the insurer to make good if the parts don’t fit.
It is our policy that if you pay for crap, you get crap. I do not believe in OEM price matching schemes as all it does it perpetuate more AM parts on insurer’s so called “estimates” because they know many OEMs will match. That’s not solving the problem of AM parts….it’s simply a band-aid.
Our agreement and how we’ve shown it’s effectiveness causing insurers to pay twice for things along with parts return fees, earned profits etc that the vast majority (not all) insurers simply approve the OEM parts because they know I’m not going to help the parts fit.
You’ll find with a hold harmless agreement and a little education to your customer most of the games come to an end. You’ll be selling OEM parts at OEM list. That’s profit.
Anyone who uses this form needs to make sure the customer NEVER initials the second selection. Always tell them to select the first option.
Furthermore check your state insurance regulations and laws regarding insurers’ responsibilities with respect to parts that must meet some sort of “like kind and quality” standard.
I’ve attached a template for the form. Shoot me a PM or email and I”ll gladly answer any questions you may have.
Getting bored with the Pissing contests on ABOL :pcorn:
good to see ya here. Mostly tech talk, but we do do a little bit of shop management
I hear ya ding. I guess I have a high pain tolerance but ABOL is changing slowly but surely….one by one.
Anyway…yeah mostly techs but remember…most shops are now run by former techs.
I’m hoping some of these guys will hand this form to their bosses and say “hey look what we can do!”
🙂
That your truck in the Avatar? Love the flame job!
Thanks. That was my old truck. Miss that thing
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