It’s Not Their Business 

by Kris Burton, WMABA President

The Collision Industry Conference (CIC) in Denver had plenty of things come out of the week – from the SCRS board meeting to the SCRS Affiliate Conference and CIC committee presentations.

Undoubtedly, the biggest topic of conversation was the bombshell of asTech and GEICO intertwining their relationship via an endorsement and standardized pricing agreement. The topic was broached during the CIC open mic session as repair professionals expressed their frustration and disbelief that asTech and GEICO have reached agreement on pricing structure on scans and calibrations. It’s become a hot topic and has been discussed at length since, and rightfully so. Essentially, a shop’s vendor stepped around its customer – the repairer – and made an agreement to standardize pricing with an insurance company. Now keep in mind, insurance companies don’t perform scans, purchase scan tools, or do any direct business with scanning and calibration companies. 

Vendors have no business entering into agreements with an insurance company or any other business who is not a customer of their service. After all, it is us who pay the bill. While the announcement was intended for GEICO’s DRP network shops – who have chosen their own contractual obligations – we all have experienced how those B2B agreements have affected the rest of us. We’ve all experienced how insurers use what they deem to be “market standard” or “prevailing” rates and charges as a means to limit indemnification for consumers outside of their networks. Who has heard you are the “only one in the area”?

What’s more troubling is the depth in which the agreement goes beyond just standardized pricing, but down to certain calibration operations being included in their pricing and the reliance on a recommendation from asTech on if an aftermarket scan (which they are calling OEM-C) will suffice in place of an actual OEM scan/calibrations performed with OEM tools and software. I know that we have struggled with insurers – including this one – accepting the OEM documented recommendations, and I’m not sure how the recommendation from a scan tool company suddenly is more reliable. They did not engineer the vehicles.

We, as repairers, have an obligation to our customers to provide the very best repairs possible following the guidelines, procedures and prescribed methods by the automaker. I think of all the families and generations of those families who trust us with their vehicles to make sure they are getting the best and safest repairs we can provide. It is our responsibility to do just that. It is our job to preserve safety, not just to repair a vehicle based upon what an outside company who wasn’t involved in the engineering of the vehicle deems is market reasonable. That is something I continue to prioritize and will not deviate from.

At the end of the day, it is up to us as collision repair facilities to choose to do business with the companies that support us. The companies that recognize who their customer is. The companies that advertise in local trade magazines, show up to association meetings, have booths at trade shows, participate and donate to the local trade schools. The ones who are actively engaged in our industry, and focused on what we – their customer – need. We, as independent collision repair shops, have all the ability to control what we use in our business. It is more important than ever to get involved, to share your perspectives and to be a part of this industry. Reach out to associations, show up at the trade schools and be an active participant to ensure they see the value of continuing to provide classes to all the students.

As always, I’m available to anyone who wants to speak about our industry.

Want more? Check out the September 2024 issue of Hammer & Dolly!