"Estimating"

Estimating is a skill that must be learned. It is a trade that has been handed down over the ages and it has become eroded with time. Some would claim there have been, but in reality there hasn't been, accepted standards, or proper research, or even recognised training schools.  Experts from both the body repair industry and the insurance companies differ on estimates day after day.

Is it any wonder there are differences when you consider that there is no formula to start with, as to understanding the real purpose of the estimate, and the result that is to be achieved, for the three parties involved.

The Repairer is estimating for "The Perfect Repair" and hoping to make a reasonable profit; the Assessor is looking at "The Most Cost Effective Repair" and is under strong pressure from management to reduce it even further; the Car Owner expects two important aspects  "A Fair Deal" and "A Perfect Repair". The system can become horribly out of balance, and a no win situation for both repairer and car owner, if the assessor is out of touch with knowing what is a fair deal.

The importance of an accurate estimate, its presentation, and its purpose must be fully realised by all parties. An estimate assessment that goes wrong is a duplication for all.

The days have long passed when an estimator goes out to quote a damaged vehicle with just his eyes, his pad, and his creative mind, but there are still many repairers, insurance assessors, and insurance companies living in the past, that still think this is the only way.

Far gone are the days when a front bumper was one piece and 2 brackets. It progressed to 3 pieces and 5 brackets, and that's gone also. Today there are many more parts involved to fix the car, with bumpers having a break-up of 20-50 components or more. The same applies to every other major assembly on a vehicle.

The estimate to repair the car of today is much more costly, and complex, and requires both repairer and assessor to have available the whole picture of the component parts and pricing information, specific to the car involved.

The estimators and assessors of today must be properly trained and continually retrained. Once on the tools and then moved into the management area, it becomes so easy to lose touch. This is why the supplement, rework rate, is so high and running upwards of 45% for most insurance companies. The cost of this duplication of rework to industry and insurance companies, is in the millions of dollars.

In summary, AUTO-QUOTE intends to introduce you to a whole new world of Estimating, which involves speed, simplicity, accuracy and plain logic. AUTO-QUOTE has done what we described was missing in the first paragraph. We have acted on the real needs and feedback of industry, we have set the standards, conducted the research, and introduced training schools for estimating and body shop management.

"Estimating " - What is an Estimate?

The costing of accident damage.
An estimation of the times, parts and materials required to perform repairs and to realise a fair return for profit.
The ability to describe and cost accident damage in a format that flows with the repair process.
The importance of the estimate is demonstrated below, where we show the people and areas of your business who get to see, and work with it.

1. The Customer
It becomes your very first and most important point of customer contact
Its' presentation is your marketing tool
It merges to follow up letters, and provides statistical information

2. The Assessor
It becomes a negotiation tool to determine the Method of Repair

3. The insurance Company
It becomes the costing for the claim
It provides valuable statistical information

4. The Parts Supplier
It becomes the order form for parts required
It must go through the fax machine
It must be accurate

5. The Workshop
It becomes your flow chart for the repair process
The estimate is the start of the Job cost cycle, and it must be followed through

6. The Final Invoice (Bill For Payment)
It must be detailed, and accurate

7. The Competition Repairers
Your estimates are watched by your competition
It becomes your trademark of acceptance and standing with your peers

8. It Could Be Disputed At Any Time
It must reflect a true value and you are accountable for it
A Judge may decide if you delivered what you estimated for

Auto-Quote Australia Pty Limited

Tel: 61 2 9570 7855    Fax: 61 2 9570 6639

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