Writing an estimate is second nature for the experienced shop owner or manager, but details can be overlooked within the familiarity of the procedure. Estimates often come up short when they are converted to repair orders. In today's DRP world, concern about shortcomings may be ignored by thinking that deficits will be caught with a supplement. However, when an adjuster puts a supplement under his profile, compensation for certain operations may still be lacking. Are you aware of the benchmarks for a profitable estimate? Make sure that your estimators are hitting the mark:

• Labor 50%
• Parts 35%
• Paint & Materials 12%
• Sublet 3%

In 2008, COLORMATCH reviewed over 100 estimates and found that shops are leaving an average of 15% of their profit on the table. If a shop with monthly sales of $100,000 was compensated for just half of that, there would be an annual gain of $90,000.

How do you find what you are leaving on the table? And how do you start getting paid for these items?

COLORMATCH Business Development Seminars
We recommend that you start by attending one of our COLORMATCH Business Development Seminars. Each quarter brings a new subject that promotes advances to your bottom line. After attending a recent seminar, one shop owner returned to his shop and recovered over $3,000 on jobs that were in his shop that week!

COLORMATCH Consultation
Call our Business Development staff to schedule a consultation. Tony Nethery, our Business Development Manager at COLORMATCH will meet with you and conduct an analysis of profitability parameters. Tony has experience handling multiple DRP accounts, managing estimators in multiple shops, leading a team of adjusters during a major catastrophe, and teaching over 30 different I-CAR classes.

Let our staff help you discover the operations where you are not receiving proper compensation.