Customer pay work can be hugely beneficial, providing you do it right

The one thing our industry is never short of is change. There are times when, as collision centres, we’ve been inundated with claims and repair work, and other times, where we’re often having to be creative in bringing jobs to our front door.

In today’s environment, where many shops are having to contend with fewer claims, and other issues such as rising severity and higher operational costs, looking at different ways to earn business and improve profitability become ever more critical. A good example is focusing on customer pay work. Done right it can provide big benefits for your shop. At Budds’ Collision Services, we have been noticing a trend of more and more customer pay work, as a greater number of people are choosing to pay for repairs out of pocket instead of going through their insurance company.

Multiple benefits

Customer pay work can deliver multiple benefits. For the collision centre, it offers the highest margins, since you can use your own door rates and you’re not sacrificing any of the gross profit. Secondly, customer pay work usually encompasses smaller, more cosmetic types of repairs, so it’s often simpler work and faster to complete, meaning you can do more jobs over a specific period of time. Also, it can be a great way to earn profitable repeat business and enhance your shop’s reputation through word-of-mouth referrals.

That’s why it’s essential to always be pushing customer pay work, even when a client brings their vehicle in for an insurance repair. There are often opportunities to create additional work, so that a single job ends up becoming two. Given that today, many consumers are watching their budgets and choosing to keep their cars longer, there is no harm in asking if they want their bumper cover touched up, or the headlights polished, the decklid refinished or that cracked mirror replaced. Lease returns are also a great opportunity to upsell customer pay work, as even minor damage can result in a penalty when the vehicle is returned from that lease, something most customers will want to avoid.

“Customer pay work usually encompasses smaller, more cosmetic types of repairs, so it’s often simpler work and faster to complete.”

–      J.R. Martino

Customers and dealers

Furthermore, if you earn a solid reputation for quality customer pay work and helping customers return lease vehicles in pristine condition, not only does that impress your customers, but also the dealers who they originally leased the vehicle from, which can lead to further opportunities including more lease return repairs and re-conditioning work on used cars.

Claims volume ebbs and flows—that’s the nature of this business, but if you actively promote and deliver on quality customer pay work, your business and reputation can stay not only consistent, but grow over time and your own terms, instead of purely relying on third party stakeholders to ensure your success.