Tony Lombardozzi makes a point at the Short-Pay Seminar on June 24, 2015.
Exploring multiple options that shop owners can use to charge and collect fully for each product and service provided to customers, Lombardozzi and Abdelmaseh instructed attendees on how to create their own pricing structures, how to charge for all products sold and work performed, and how to establish a method for collecting on invoices that are not fully paid. These methods included use of the court system, especially in cases of simple breach of contract cases.
As long-time independent industry advocates, Lombardozzi and Abdelmaseh offered unique perspectives on the main reasons shop owners have fallen into the poor financial condition currently plaguing the collision repair industry. They identified the main reason for this dilemma as the "Insurer Control and Payment System" (ICPS).
According to Lombardozzi and Abdelmaseh, many insurers have constructed the ICPS by employing price levers, such as so-called labor rate surveys, dollars times hours product pricing, and their "we don't pay for that" response to random line items on the invoice. Insurers use these levers as negotiating techniques designed to suppress normal free market pricing, Lombardozzi and Abdelmaseh explained. They advised shops to reject that system and work around it.
In reviewing how the ideal process would work, shops learned a practical way to "do it the right way" through the use of documentation and legal principles. Using the proper contracts and documentation creates high quality, believable evidence in a courtroom that makes it difficult for insurers to defend their actions.
A portion of Lombardozzi and Abdelmaseh's presentation emphasized the impact of fear on the collision repair industry. Abdelmaseh explained, "The audience was told that fear is the basis of the entire insurance industry - after all, fear is why people and companies buy policies - and insurers turn that fear against their vendors as well. Fear causes irrational decision-making and distorts pricing as well."
Attendees were highly interactive, discussing legal issues and asking questions, and many expressed satisfaction with the amount of knowledge acquired as well as satisfaction to implement the practices taught at Superare Marketing's presentation in their own shops. The short-pay seminar concluded with an overview of the consulting services offered by Superare Marketing and a preview of the seminars they are currently developing. Lombardozzi and Abdelmaseh also introduced Ultisure ®, their branded marketing program which will be released in the near future.