On Wednesday, July 29, ASA leaders met with Rep. Gene Taylor, D-Miss., sponsor of U.S. House Bill 1583, which would repeal the McCarran-Ferguson Act. Since 1945, insurance companies have had a "limited" exemption from federal antitrust laws that apply to most other industries ensured to them through an act of Congress. The McCarran-Ferguson Act provides that federal antitrust law applies to the "business of insurance" only to the extent that such business is not regulated by state law. The anti-competitive consequences of McCarran impact both consumers and small businesses that have to deal with insurers.

ASA supports H.R. 1583, which is co-sponsored by Rep. Peter DeFazio, D-Ore., because:

• Insurers have argued that this exemption allows them to keep insurance rates low. This is simply not the case. A competitive marketplace will only enhance consumers' options.

• The state insurance regulatory structure has failed for consumers and collision repairers. Without federal regulatory recourse, consumer and small business complaints are left to generally ill-equipped state regulators. After years of complaints, many states lag in addressing important consumer and small business property and casualty issues: i.e., consumer steering, insurer pressure to use inferior auto parts, paint caps, etc. These problems are increasing for consumers and repairers, not decreasing.

• State regulators are less likely to recruit top professional employees to oversee increasingly complex insurance products offered by insurers as well as deal with more complicated insurance issues that arise. Federal regulators have access to a degree of human resource and other capital that state agencies do not enjoy.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

 

              It appears that the Collision Repair Industry in our state and some others has become completely controlled by the Insurance Industry and the shops that allow the continued deception of the American Public. The blatant disregard for the laws that protect and provide what little rights the average consumer and shop owners have is astonishing. I am in the court system on a regular basis fighting for the money that we have spent to properly repair a vehicle to its pre accident condition, that’s right, fighting for the money that the insurance companies are responsible for. The insurance companies have influence or lets just say “ Contributions “ in all areas of our state providing them with a blanket of protection to continue to deceive the general public. We all know what is going on and most are afraid to speak out against it, but would not hesitate to prosecute their neighbor if they stole from them. Oh I get it, the neighbor doesn’t own you like the Insurance Companies do therefore there is a reasonable “NOT” justification of some owners continued participation. I know that the list is long to sign on the dotted line and that there are many that can not wait to get into some of your positions and play this manipulative game agai nst the public, but keep this in mind those that are waiting are and will be willing to cut you out in any way possible to be able to sign that contract. There are no loyalties here my friends, none. The practice of underpayments, not paying for necessary procedures, not paying the posted labor rates and the many other things on the list is completely in direct conflict with the policies that are purchased on a daily basis. I have never heard on any insurance advertisement that “ The insurance companies have filled out a survey and all the participating general public should review and determine what they can charge for the policies in that market area” Do you see the rationalization of this.? The independent collision repair facility is involved in an all out war of survival and needs to be prepared to disclose all of these unlawful practices that are being brushed off as a common business practice. I understand that “No one said business is fair “but I also know that no one said that it is okay to be an accessory to the deception or manipulation of the general public for monetary gain, in fact I think that that could be construed as illegal. If your business model was built around the continued participation of the insurance industry for your longevity, then your more than likely to continue business as they instruct you and will cower when the big bad wolf comes into your office to review your files all the while hoping that they do not find anything that they could use to give you the boot or destroy your business. This industry has been completely compromised by the people that participate in the condoning of the well known tactics and manipulation of the public and the shops by the insurance industry, information providers and our elected officials. The Sad Truth of Our Industry in my opinion is that! We are playing against a stacked deck and some of the players are shuffling the cards for the dealer making it almost impossible to have a level playing field.

 

 

I just learned that State Farm has raised their rates to $48 for Body and Paint, $50.00 for Frame and $28 for Paint & Material in the Phoenix Metro Market.  Go figure, Phoenix has finally crossed the line.  Flagstaff, Yuma, Tucson and all other surrounding areas have had split rates for years.  I guess Phoenix is WAKING UP.  HAVE YOU!  Now that you have the bone what are you going to do with it?  POST IT, ENFORCE IT AND GET WHAT YOU DESERVE!

    I had the opportunity today to hear different opinions on the problems that face our industry and I can tell you that I was amazed at the amount of fear that is shared from so many.  The collision industry has given too much power to the insurance companies, allowing them to dictate to these owners how to run their business and how to repair vehicles.  We feel fortunate to have the issues that we have and what I mean by that is, at least we are standing up for ourselves and the industry.  
    Way too many owners are willing to continue this fantasy that the insurance companies are their friends and that they are not expendable.  We hear time and time again that the "DRP" contract is held over heads as an extortion type of tool to allow the insurance companies to pressure the shop to do things that is against the beliefs of its owner.  Some are feeling it more than others and it is due to the "Business Model" that has been accepted by them and now when times are tough and that volume that they have taken for granted so long is no longer available they are unable to change direction for fear that one of their insurance friends will retaliate against them and cut off what they do have!  Wow!!
    What has the industry come to, what have some let it come to?  We believe that the time is now to "Pick a Side" and stand up for what we have worked so hard for all our lives, our business!  This is no different than setting your alarm before you leave the facility, you do that to avoid any theft or damage to the business so set the alarm, stop the theft, and stop the damage to your business.  Like I said for some this will be the equivalent of stepping into the unknown but it's not like you haven't been there before.  I am confident that we together can defeat this, that we can repair the damage to our industry.  Okay, so there will be some that are and will be willing to continue their fairytale but if the majority stands firm they will disappear eventually and it will be a more level, profitable playground for those of us who decided that it was "Time to Pick a Side"

OK, so this week I made a deal with myself that I would honestly try and look at things from the Insurance standpoint and try and consider that all the information that was coming from these well trained individuals was indeed fact and that I was just never properly instructed or taught how to repair a vehicle, I truly gave in for this one week!!!

What I noticed is that these well trained individuals were not really that well trained in vehicle repair, but were in the assessment of damages based upon a certain criteria passed on to them from their superiors, trainers, etc.  It would appear to me based upon the terminology that is used on a daily basis from these individuals that all collision losses are exactly the same and that all processes and procedures that some of us deem necessary are in fact not necessary.  I was trained in the repair and refinish procedures necessary to restore a vehicle to its "Pre-Loss" condition based upon an itemized estimate prepared by the deemed expert, regardless of our input or experience.

I stood in amazement at the way these losses were assessed and how the terminology or practices stayed the same no matter which Insurance Company we were dealing with, amazing!!  I am so glad that this was just an experiment, that I have not reached the point no matter what they throw at us to say I give!!!  I honestly believe that this can change, that you out there that are letting this happen can change.  The Insurance industry cares about one thing "The Bottom Line" as we do also, but we are willing to charge for what we do and nothing more, whereas the Insurance industry wants to get paid for things that they do not do!  and there are way too many of you out there that are willing to help them at others expense and it has to stop, stop today! 

The Difference Between Right and Wrong has become clouded in our industry and it is my hope that this will change.  I was told today by an insurance expert that I cannot change what is happening and that I should just get out of the Industry, Hmmm!!  I thought that doing the Right thing was the way things should be, but it appears that Right is Wrong if you are wearing the properly labeled polo!!!  Thanks for listening because it would appear that this is what some of you do best in Arizona, you listen and not act!!!

Attendees from Phoenix Metro, Tucson, Yuma, Page, and Lake Havasu were amongst the 69 that took the Dare offered by Bob Schubert in a previous comment on this blog.  Here are some of the comments that we received:

    Mike was incredible!  He kept it very fast paced and everyone in the room was engaged.  The information was very valuable and I came back to my shop to implement some of the concepts immediately.  It was positively worth my time and would like to see him come back so that I can bring another four people from my shop to hear him speak.

    The information was very helpful and we have already implemented some of it and will be doing more.  On a scale of 1 to 10, I would give this a 10!  I wish it was longer.

    The information was valuable from the stand point of presenting the extreme opposite end of estimating from the insurer's point of view.  In this extreme estimating world it shows us how much room there is in the middle and how we may each choose to build a business model anywhere in between.  The biggest take away was that no matter what model you choose, becoming systems oriented and why, will provide the best stability.

    The meeting was positively worth my time and it was one of the best estimating seminars I have ever attended.  I applaud ASA for putting this together and making it happen.  We got a hell of a bang for our $40 bucks.

    Absolutely worth the 3 hour drive each way for myself and my assistant!

Mark your calendar for May 19th - Mike Anderson is coming to town with what is probably the best estimating seminar in the country!  I dare you to go to this and not increase your bottom line.  You would have to sleep through it and trust me, it just isn't possible to sleep through a Mike Anderson seminar.  (Ask anybody that has been to one.)  This isn't just about what is in the P Pages - Mike will also share with you proven systems and processes for accurate estimating that you can take to your shop and use right away.  Everybody that writes estimates in your shop should attend.  Don't wait for the next one - Mike is booked up months in advance.  And thank you Dupont and ASA AZ for making this possible at a fraction of the regular price!  See you all there!

To download the registration form click here

Bob Schubert
Impact Auto Body

I read this in Seth Godins blog I follow...

There's a story in the bible with very specific instructions for building an ark.  Included in the instructions is a call for using tanned dolphin leather.  Regardless of your feelings about the historical accuracy of the story, it's an interestin questions:  why create an impossible mission like that?  Why enourage people who might travel 100 miles over their entire lifetime to undertake a quest to find, capture, kill, skin and eventually tan a dolphin?

My friend Adam han an interesting take on this.  He told me that the acquisition of the leather is irrelevant.  It was the quest that mattered.  Having community-based quest means that ther's less room for whining, for infighting and for dissolution.  Having a mission not only points everyone in the same direction, it also creates motion.  An motion in any direction is often better than no motion at all.

All around you, people are telling you two things:
1.  Whatever you want, forget it, it's impossible and
2. Sit still, preserve resources, lay low.

And yet, the people who are succeeding, creating change and (not coincidentlally) are happier aren't listening to either of these pieces of advice.  Instead, they're on the searc for dolphin leather.

Frank Sinatra had it wrong.  Your dream shouldn't be impossible, but it sure helps if it's improbable.  Don't choose your dreams based on what is certain to happen,choose them based on what's likely to cause the change you want to occur around you.

Best regards,

Bill Park

Has anyone heard that Farmers is conducting a prevailing rate survey in Phoenix?  The reason I'm asking is that an appraiser from Farmers came in on a supplement on a claim, we tried to supplement on the labor rate increase, and the appraiser stated that he could not pay the increase. 

I am wondering if this is true.  I am also wondering if the appraiser made untrue statements to not pay the increase, anyone experiencing this?  Any suggestions?

When industry norms start to dies, people panic.  It's difficult to change when you think that you must change everything in order to succeed.  Changing everthing is too difficult.

Consider for a minute the pivot points available to you:

• Keep the machines in your factory, but change what they make.
• Keep your customers, but change what you sell to them.
• Keep your providers, but change the profit structure.
• Keep your industry, but change where the money comes from.
• Keep you staff, but change what you do.
• Keep your mission, but change your scale.
• Keep your products, but change the way you market them.
• Keep your customers, but change how much you sell each one.
• Keep your technology, but use it to do something else.
• Keep your reputation, but apply it to a different industry or problem.

Simple examples:

• Keep the musicians, but change how you make money (sell concerts, not CDs).
• Keep making guitars, but make bespoke expensive ones, not the mass market ones that overseas competiion has made obsolete.
• Keep the punch press and the lathe, but make large scale art installations, not car parts.
• Keep your wealthy travel clients, but sell them personal services instead of trips to Europe.
• Keep the factory that makes missiles, but figure out how to make high-efficiency turbines instead.

Technorati Links - Posted by Seth Godin on March 12, 2009