EagleMMS Blog

Stagnant Insurance Rates Versus Rising Material Costs

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With globally rising prices, it is more crucial now more than ever to ensure that you are getting reimbursed for your material costs.

It’s no secret, these days with inflation, covid and disrupted supply lines, costs are going up across the board, from lumber to steel, to you guessed it; Autobody materials and paints. But what does that mean for your business? With stagnant insurance rates, it means decreased profits. Rates in many states have been the same for nearly 2 decades when during the same time the value of the dollar has diminished and the products being used have become more expensive. Many suppliers on the distribution side are able to, in real time, adjust their costs on the fly any time the economy shifts or a ship gets stuck in the suez canal, they will increase their costs. However you as a body shop owner or manager are not able to reflect these increased overheads as adequately and immediately on the estimates provided to insurance when material costs are paid for as a function of hours, and the rates on those hours have been the same since most of us can remember. To compound this problem is the often arbitrary and inaccurate method of billing materials as a function of billed repair hours.

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This is at best a guess but anyone who has worked the field knows one 20hr job is not the same as another, and depending on year make and model the materials used per repair order can vary greatly. This is in part done because there is no better alternative. How else are you supposed to bill materials? Eagle MMS seeks to tackle these long standing and worsening issues. With itemised invoicing you can get reimbursed for every item used for the exact cost of list price regardless of your supplier's discount, and even with a 25 percent markup, as is industry standard, putting you back to not just trying to breaking even but profiting off of your materials purchases and inventory work.

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