Would you turn down a DRP request?
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If you had insurance companies lined up to give you a drp contract, would you accept them given what they are today? How many people would reject it?
Probably not, I guess it depends on the contract. If we don’t take it someone else I’m sure would. I don’t like what DRP has done to the bodyshop world, but if we let one pass & things slow down too much I’d really be kicking myself.
It would realy depend on what ins company it was… Most of them are great you just need to know how to play by there rules and make it work for both partys… its all about csi and numbers now a days!!!!
DRP ??? funny term cause I cut costs and compromise for THE CARTEL every job. Does working with them to fix a customers car make you a DRP. Or a service provider.
I know when to stand up , even when to lash out , but that will help my customer HOW? B)
You know whats funny? I have asked my boss at various times to get me more time for this or for that. His answer is we have to do it for less because thats part of being on the program. Then in the same breath he tells me we cant get more time on this other car because we are NOT on their program. :wak
I’m sorry but what does DRP stand for?
Direct Repair Program… Its where ins companys pick a shop to make deals and than steer work to that shop….
DRP is a Direct Repair Program B)
A direct repair program, or “DRP” as they are often called, is an automobile insurer’s group of preferred repair shops. Think of a DRP like a health insurer’s circle of preferred provider organizations. Body shops involved in an insurer’s program have a relationship with the insurer. That relationship, however, can be based on many different things, not all of which are good for consumers.
Direct repair programs promote the insurers’ best interests, not the consumers’.
DRP arrangements are initiated by insurers, not body shops, and insurers have their own reasons for desiring to create these circles. To become a member of an insurer’s repair program, repair facilities typically must execute an “agreement” with the insurer. However, this agreement spells out obligations on the part of the repair facility but usually does not contain any reciprocal obligations on the part of the insurer.
Some of the key standard provisions require the repairer to write all estimates using aftermarket (non-original equipment manufacturer) or salvage parts; identify “betterment” to a repaired vehicle and collect those monies from the customer; shoulder all liability for repairs performed; and indemnify the insurer from any lawsuit the customer might bring. In other words, the body shop is entirely responsible for any customer dissatisfaction.
In exchange, the repairer receives what exactly? According to the terms of these “agreements”, the insurer promises the repairer nothing in return for all of the obligations it will undertake. The repairers usually do not even have the right to advertise that they are part of the insurer’s direct repair program.
For example, State Farm’s Service First Agreement expressly prohibits repairers from using either State Farm’s name or its Service First designation without “express written permission from State Farm” . . . which must be “in the form of a Licensing Agreement, to be executed separately from this Agreement”. (State Farm Service First Agreement, paragraph 9.) However, this same paragraph expressly allows, but does not require, State Farm to advertise to its customers that the repair facility is a member of its direct repair program.
The obvious question raised is: Why would any repairer sign up to be a member of these programs when the insurer has no overt obligation to do anything on behalf of the repair facility? The only sensible answer is that the repairer believes becoming a member of the DRP will drive more work to its shop. And therein lies the rub.
Been there done that, would never go back. We had 9 DRP contracts for 10 years and I would no way in hell go back to that nightmare.. We are now DRP free, I still have retained all 9 guys and we are making more per job then before. DRP is the easy way out, do some real marketing and you wont need them.. Anyone who thinks they are really needs to look hard at the numbers.. If you like doing more for less than all means get on a drp today.
[b]Joe@FCAB wrote:[/b]
[quote]Been there done that, would never go back. We had 9 DRP contracts for 10 years and I would no way in hell go back to that nightmare.. We are now DRP free, I still have retained all 9 guys and we are making more per job then before. DRP is the easy way out, do some real marketing and you wont need them.. Anyone who thinks they are really needs to look hard at the numbers.. If you like doing more for less than all means get on a drp today.[/quote] Thank you I needed to hear that right now,one of the big shops is moving to my town and will be on all the drp programs and it has been messing with my head… However I here they have been real slow and we are busy.. we do alot of adds telling people they dont want to use a drp shop and why… seems it has been working!!!!!!!!! :whistle:I stormed into a local Cartel office lately and let them know in a style all my own just what I thought of them steering my customers else where and I like that add idea …. perhaps their customers would like to know I won’t fix their car if they carry that cartel’s coverage….. hell we bin here longer than they have :whistle: will you share that letter/add with me 😉
[b]Stone wrote:[/b]
[quote]I stormed into a local Cartel office lately and let them know in a style all my own just what I thought of them steering my customers else where and I like that add idea …. perhaps their customers would like to know I won’t fix their car if they carry that cartel’s coverage….. hell we bin here longer than they have :whistle: will you share that letter/add with me ;)[/quote] I have a few running and will link to copy from my shop computer… they are pretty cool adds….we dont talk bad about the ins comps but we do let the people know its there choice and choose well…I also just got as letter from a customer this week about how unhappy she was when state farm told here if she did not go to one of there select service shops the rapairs would cost her more lolololol man she was pissed… she is a great lady been to us at least 7 times before and will not go anyplace else.. she was pissed ….[b]HCC/WCC wrote:[/b]
[quote][b]Stone wrote:[/b]
[quote]I stormed into a local Cartel office lately and let them know in a style all my own just what I thought of them steering my customers else where and I like that add idea …. perhaps their customers would like to know I won’t fix their car if they carry that cartel’s coverage….. hell we bin here longer than they have :whistle: will you share that letter/add with me ;)[/quote] I have a few running and will link to copy from my shop computer… they are pretty cool adds….we dont talk bad about the ins comps but we do let the people know its there choice and choose well…I also just got as letter from a customer this week about how unhappy she was when state farm told here if she did not go to one of there select service shops the rapairs would cost her more lolololol man she was pissed… she is a great lady been to us at least 7 times before and will not go anyplace else.. she was pissed ….[/quote]
ya i have heard that one b4 state farm can be a great company ta deal with but also be a bunch of steering ba$turds at the same time :chairI get along great will all the ins companys its the inhouse reps that dont know us that we have the troubles with.. once the claim hits the fields all the adjusters are on our side.. we are a shop easy to work with and get all the damage up front so there is no supps… I will also help the adjusters look good say a truck needs a bed side I will let them write the est for repair and as long as the $$$$ work out I will still put a new bedside on.. its a win for them the customer and us… you just need to know how to play the game so all partys win…Unlike some shops in my towns they bully the poor reps so much they get put on as a drp just so they can be controled… thats just not the type of person I am..
If you have your customer base already, the insurance companys will work for you instead of vise versa. It works for us, as long as you inform the customer on your gaurantees and it is thier choice on where they want to have their vehicle fixed you should have it in the bag. If you are a new shop starting out I would recommend DRP to gain a customer base. Then go from there!!
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