Auto Body Shop Veteran Says DRPs Can Be Profitable If Done Right

body news recently sat down with jim loon talk about what’s important to him and the current state of the body shop industry.

Jim and Kelly Loon are co-owners of Painter Collision Centers with two locations in Queen Creek and Chandler, AZ. Their goal is to create 10 locations over the next two years through smart and strategic expansion.

As a bodybuilder, what are your main concerns?

Hiring and retaining a qualified workforce is our number one concern.

A shop owner once told me that the tug of war between body shops and insurance companies will never end, although it will change and evolve. Do you agree, how and why have your relationships with your insurers changed?

I respectfully disagree; I’m different in the way I see it. All repairers can work effectively with carriers if they know how to navigate the process. It’s not always about being right. But instead of having the facts, the correct documentation and the right attitude about the relationship is what really matters.

Another body shop owner told me that the biggest problem in this industry is the simple fact that insurance companies, in general, don’t pay enough for repairs. Do you agree?

I again respectfully disagree, as in my experience all insurers will pay to properly repair the vehicle. I also believe it’s a choice to fix a car properly. Scans, calibrations and the like will be reimbursed as long as they are properly documented.

I’m a DRP workflow guy. I’m a big fan of quality repairs and we’re very picky about what we repair. Insurance companies always monitor the bottom line and there is nothing wrong with that. But I don’t think they want us to do poor repairs or compromise our quality to save money.

Are most of your DRPs profitable and are you happy with them?

I believe that all DRPs are profitable for all stores. How to repair a car? And how to write the quote? Are you focused on sales composition and writing a comprehensive estimate? Are you complacent and writing bad estimates and what does your debit model look like?

Profitability is based on good quality estimates and throughput. It is a proven fact. A store that produces 1.5 HPD will add 1.8% to the bottom line, more or less. A shop producing…

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