You've heard this before: A proper collision damage estimate of repair costs must be written complete and fair for all involved.

A complete estimate will, of course, include a thorough damage analysis, reasonable repair decisions, and adherence to all procedures of the information provider.

A fair estimate will include all procedures necessary for proper vehicle restoration, only those procedures that will be done, consideration for repair business profits, and consideration for insurance claims cost control.

If only we had the time to do it right.

In the real world of writing estimates under fire, this simply does not happen often enough. There are phones to answer, production schedules to meet, and interruptions to handle. Estimate errors and missing details are inevitable results of this hurried pace. So what can we do?

First, gain some time to be able to estimate more thoroughly. Second, remove distractions and redundant steps to better focus on the job of estimate writing. Third, know your estimating system forward and backward. Finally, learn those other estimating systems (you will need to work with their estimates in your business sooner or later).

1. Streamline your estimate processing flow.

Gain efficiencies to give yourself more quality time to write the estimate.

Make sure you really need to write an estimate. Each customer must be comfortable and confident in your ability to handle this repair event, even if it means not writing an estimate. Identify their needs. Explain their insurance company claims procedures. Show them how your business can help. Another estimate may not be what they need, saving time while earning business.

Make sure your estimating desk/office is in order. Easier said than done with the mountains of paperwork and documentation needed today. Still, an organized system of folders, file cabinets or in-baskets not only makes your business LOOK more organized, but can actually help your business BECOME more organized. Of course, better organization makes your estimating process more efficient.

Make sure your inspection area is clean, well-lit, and stocked with common tools and equipment. Easy access to a drop-light, pry bar or floor jack will make the damage analysis process more efficient, take less time, and reduce errors.

Make sure your technical skills are up-to-date. A good damage analysis depends on your inspection skills as well as your knowledge of repair and refinish technologies. Knowing what needs to be done can make the estimating process more efficient. Documenting what needs to be done can make the estimate more accurate. Make sure you have easy access to a list of Not Included items. These are additional operations and costs that should be considered for every estimate. Even though they may not be appropriate on every estimate, don't forget to consider them. Create a printed menu of these, tailor it to your needs, and include prices along with labor amounts. Take the time to prestore these in your computer estimating system. A little time and effort up front will increase efficiency and make your estimate more complete and accurate.

2. Take advantage of your support systems.

Focus your time and effort on writing the estimate by using other tools to help the customer and lighten your load. Have signs to direct and inform customers where to park, how to enter, and who to see first. Your building, parking lot and signage should be designed to avoid any uncomfortable confusion.

Have someone greet the customer. Although there may be one assigned person, it is the responsibility of EVERYONE to greet and direct each customer. Your customer must feel respected and wanted.

Have brochures available that can start explaining your business, the estimating process, and what your customer can expect to happen next. This information delivery method can save time so you can better focus on the estimating job at hand.

Have something for the customer to do if a delay is unavoidable. A simple customer information form will fill some waiting time, promote your business and save both of you time later. Additional support to engage the customer while waiting could include industry videos, regular TV, today's newspaper and a view of repair work in progress. A wall of awards and credentials is interesting to some. Props showing different paint stages or colors may help repair cost discussions later.

Have EVERYONE be responsible for the customer's experience in your business. Every employee needs to be aware and capable of helping each customer feel comfortable in your business, whether they need help finding a parking space, changing the TV channel, or any number of other potential inconveniences. The customer must feel respected and wanted.

3. Know your estimating system.

The more you know about your estimating tools, the more efficient and accurate you become.

Know your system. For your own estimates you have selected an information provider; the books, the computer system, or both. Understand what it does and know what it doesn't do.

Know how to find all the symbols and notes, as well as understand what they mean. Avoid hand-me-down training when estimators are replaced. As each one teaches the next one, information may get diluted or lost. Use reference materials from your information provider. Attend any classes they offer.

Know your Procedure Pages. This worn-out cliche is still important. Ignoring or forgetting necessary operations can make each estimate inaccurate and unprofitable.

Quick Quiz: For your system, answer the question.

For ADP, which ONE of the following is NOT INCLUDED in hood replacement?

a. Hood lamp
b. Safety catch
c. Insulator pad
d. Weatherstrips

For Motor (CCC), which ONE of the following is NOT INCLUDED in adhesive molding replacement?

a. Remove old molding
b. Align to adjacent components
c. Clean installation area
d. Install new molding

For Mitchell, which ONE of the following is INCLUDED in front apron panel replacement?

a. R&I fender
b. R&I bumper
c. R&I suspension
d. R&I cowl trim panel

It is simply too difficult to memorize all the Included and Not Included operations. At the same time, it takes too long to look up procedures for every part on every estimate. Instead, make a commitment to look up procedures for at least one different part on one estimate each day. This not only reinforces a good habit, but also will slowly build complete knowledge of your system's procedures.

Know your system's computer estimate printout. Know which calculations are evident and how to read them. Know which calculations are not seen and how to understand them. Contact your information provider for any questions you have or explanations you need.

4. Know the OTHER estimating systems.

You will be working with estimates written with all three major information providers. You know your system very well, but how do you know if a different system was used properly? Do you understand ALL the information displayed on their computer printout?

Get their Procedure Pages. After all, how can you play the game without having the rules? Can you easily answer the previous quiz questions for the other systems? Again it may be too difficult to memorize everything, but having the ability to look it up will do just as well.

Get additional reports. These are designed to enhance or clarify information that is not on the standard estimate printout. CCC's Parts List is useful to help check part numbers. ADP's Labor Report is useful to help understand labor overlap calculations. Mitchell's Audit Print is useful for comparing book labor with estimate labor to analyze automatic labor calculations.

Get answers. Ask the estimate writer. He or she should be familar, if not an expert, with their own estimating system. Sometimes you may need to work together to find the answer ... but find it. As a last resort, call the information provider's toll-free number and find your answer there.

ADP: (800) NOW-4ADP
CCC: (800) 621-8070
MOTOR: (800) 426-6867
Mitchell: (800) 854-7030 Ext. 8220

The good news is: Competition has been steadliy improving these programs, adding more features and making them more user friendly.

The not-so-good news is: Changes are coming more rapidly. New computer hardware is allowing more complex processing while frequent software releases make it much harder to keep up with all these systems. Learning will remain a continous need.

In addition to keeping up with technical skills, invest some effort in improving your estimating process, allowing time for all the needed estimating steps, and knowing the information providers' systems.

Can you afford to take the time to do it right?

Can you afford not to?

Bruce Burrow has been in the automotive repair business for more than 25 years, and has been ASE certified since 1974. He has worked as a technician, shop manager and service director, with extensive estimating experience. He was a senior trainer for one of the information providers and is currently a certified I-CAR instructor and an independent consultant for the automotive repair industry, developing and presenting training programs for both shop and insurance personnel.

Nine Common Computer Estimating Mistakes And How to Avoid Them

By Mondo Jacobs

Given the continued pressure of shop owners to minimize expenses and maximize profits, one surefire way for your shop to secure its bottom line is to make sure that your estimating operation runs with a minimum of errors or dysfunction.

Many shop owners have already recognized that automated estimating systems can do much to streamline the administrative process and reduce errors in the process. These systems are designed to simplify the identification of parts and labor required for a specific vehicle repair while eliminating common math errors. But there are other ways in which systems help a shop make the estimating process error-free. As part of ADP Collision Repair Services' daily on-site meetings with shop owners around the country, our sales and field staff have taken note of some of the more common miscues in estimating operations.

Let's review some of the more common mistakes made that could affect a shop's overall profitability:

1. Incomplete Labor Estimates - Underestimating the labor steps necessary to complete the repair is probably the No.1 area where most shops can make improvements. While a lot of overriding factors go into the development of an estimate, shop owners need to make sure they capture in an estimate all of the necessary labor steps involved in the repair. For example, in replacing a radiator, does the estimate include all of the parts removal and reassembly labor times necessary to finish the task? In some systems, these operations may need to be manually included, while others automatically take vehicle-specific options into consideration when selecting parts and calculating replacement times. Either way, this additional labor time should not be overlooked.

2. Parts Ordering Mishaps - Probably the biggest cause of production delays is the incidence of parts being back ordered, delayed or ordered in error. Shop owners can make a dent in this loss-time area by taking the extra step of rechecking the parts order once it is written and before parts are ordered. Additionally, shop owners have to be aware that labor times affecting parts replacement are calculated differently in different systems. Not truly understanding these differences could negatively affect the final estimate. To this end, some systems can block the incorrect selection of parts, eliminating errors committed by employees who may still be new to the estimating system. Even with these automated assists, however, a recheck of the order is critical.

3. Overlooking Two-Stage Painting Times - Given that two-stage painting times for both exterior and interior surfaces of repaired vehicles have become the standard, estimators cannot afford to, but sometimes do, overlook the necessary labor associated with the procedure. Even vehicles with single-stage finishes still require two-stage painting process to bring the finish to its pre-loss condition. Fortunately, more and more systems are adding an automatic default to two-stage refinishing time that will reduce the amount of errors caused.

4.Underutilizing System Features - Estimating systems do more than just estimating. Not taking advantage of the numerous capabilities that these systems provide is a mistake. For example, estimating systems can generate labor reports or P-Page notes that detail necessary operations within the repair. This allows shop owners at a later date to be supplied with valid data supporting each repair. Another overlooked capability is the shop's option to program its own customized manual entries " into the system. While estimating systems provide an almost endless menu of labor procedures, this ability to pre-store labor steps that are unique to your shop can result in saving your shop redundant and unnecessary steps. The automatic letter-writing is also often not used. This marketing-oriented feature, which sends pre-written thank-you letters to your customers following service, could result in a jump in satisfaction in your shop's Customer Satisfaction Index (CSI).

5. Overlooking Insurers' Needs - Recognizing that insurers are also proponents of reducing cycle time, it might be a good idea to program, in advance, all of the unique estimating requirements and cost thresholds of those insurers with whom you do a lot of business. Rather than creating an estimate from scratch each time, and dealing with a trial and error method of getting an estimate approved, pre-storing the insurer's unique characteristics and information in the system can significantly reduce estimates being redlined. In this instance, some larger shops have gotten into the business of actually specializing their estimators to work specifically on estimates by insurer.

6. Underutilizing Imaging - There are a number of driving forces behind the growth in digital imaging use today: its increasing affordability, the ability to store an electronic catalog of repairs, and, most important, the mandate of many insurers and other electronic trading partners to use these systems as a requirement for their program participation. This is an area, however, where the importance of purchasing quality equipment is often overlooked, resulting in the camera being underutilized or incompatible with some software systems. The best outcome is through the purchase of a high-quality digital camera, and the good news is that once the camera is purchased it is usable for a long time and generally compatible with any system. Another mistake that often occurs with a shop's imaging capabilities is its non-use or underutilization when a vehicle repair is not associated with one of the aforementioned trading partners. Capturing images of all vehicles, and making sure to shoot the car from no less than four angles can help ensure the shop that all relevant damage to the vehicle is documented and accounted for.

7. Overriding the System - There are times when the estimator feels the need to make an adjustment in the estimating system's labor times. This override effort can, however, throw off the calculated labor times in other steps of the process. For example, in overriding the time for a specific step required in replacing a radiator - the system has calculated one hour, your experience tells you it's two - be sure to check that the system doesn't double the labor time of all of the other steps too. Overlooking this final review could result in estimated labor times that may not be justifiable later.

8. Not Keeping In Training - Faced with a high employee turnover rate, it's not unusual for a shop owner to use time sparingly when it comes to having its estimator(s) undertake training and certification. Moreover, because staff time is so valuable, it's difficult for shops to spring an estimator for one or two full days out of the office in an effort to keep up with the latest system advances. Another common scenario is to have the fully certified trainer who is leaving the operation instruct another employee on just the bare essentials of the system. As turnover in the shop continues, the common result is an outline of instruction that becomes more and more abbreviated with each employee change. Make sure your shop has not fallen into this bare essential estimating knowledge-based level, as this could easily be the reason for increased errors and underutilization of your estimating software's important features. Find out if your provider has alternative training available, including computer-based training (CPT), which allows the new user to train in the workplace or at home at his or her own pace and convenience.

9. Not Growing the System - Regardless of the size and volume of your shop or shops when you last bought an estimating system, is your operation in need of additional applications to the initial core system? Could your operation function better if it was fully integrated? Additionally, as more and more shops increase their production volume or add more than one location, owners and managers will be forced to replace their reliance on simple intuition as to how well the business is running with scheduled reports detailing profitability and efficiencies of each job's turnaround time. The scale or flexibility of your estimating system and its ability to grow and function with your operation's current and future needs, is an important consideration for review on an ongoing basis.

Mondo Jacobs is product manager for ADP Collision Repair Services, a strategic business unit of ADP Claims Solutions Group, a provider of technology solutions to the automotive repair industry, based in San Ramon, Calif. Jacobs can be contacted at (925) 866-1100.

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