Ed Kizenberger, Executive Director of The Long Island Auto Body Repairmen’s Association (LIABRA), says “Here is where the line in the sand is drawn for our industry: big shop, small shop, DRP/non DRP, it does not matter, factor out some or all of your parts profit and tell me how that contributes to your being a healthy viable collision center.
Any percentage of a smaller number results in a giveback of direct profit that comes off your bottom line and goes directly into the insurer’s pocket.
This, with a reduction in frequency and severity, should pretty much freeze our industry in place impacting our ability to attract new workers and train existing ones, invest in new equipment, maintain our facilities, etc. Mind you, the insurer’s argument will be they need to control parts to contain costs. That will help keep consumer’s premium costs “reasonable.” If this issue does not polarize and move our industry to action there will be little left to be concerned about.”