Estimating with Purpose House Keeping Welcome Anti-Trust We Are Here First and Foremost To

METROPOLITAN CAR-O-LINER ESTIMATING WITH PURPOSE HOUSE KEEPING WELCOME ANTI-TRUST WE ARE HERE FIRST AND FOREMOST TO

MAKE THE COLLISION REPAIR BUSINESS BETTER!

Therefore, even if we were allowed to, we will not talk about:

▸ Labor Rates

▸ Parts or Equipment Prices

▸ Repair Times

▸ Cost and Profit & Profit Margins

▸ Dividing up the Market

▸ Boycotts or Refusals to Deal with Anyone

▸ Judgment on a Specific Shop’s Work

▸ Judgment Practices of a Specific Insurance Company

▸ Policies and Guidelines for Claim Settlements

▸ How Repairers or Insurers Conduct their Business QUESTION: WHAT’S THE ONE THING THAT BRINGS MONEY IN? PURPOSE

“EFFORTS AND COURAGE ARE NOT ENOUGH WITHOUT PURPOSE AND DIRECTION”

John F. Kennedy ESTIMATING WITH PURPOSE

WEBSTER DEFINITION?

▸Action in the course of execution ▸Intention ▸Determination PURPOSE OF THE ESTIMATE? INSURER

“Intention”

▸ A “tool” for determining loss payment

▸ Documentation of vehicle condition and damage for rating and future loss adjustment

▸ “Tool” for determining group premium

▸ “Evidence” of business practices PURPOSE OF THE ESTIMATE? REPAIRER

“Intention” “Determination”

▸ Detailed Repair Plan

▸ Accurate Repairs

▸ Decrease Liability With Documentation

▸ Decrease Cycle Time

▸ Drive Profit STOP RE-KEYING! = = Capital Expenditures Capital expenditures are the amounts that companies use to purchase major physical goods or services that will be used for more than one year.

Operating Expenses Operating expenses are the costs for a company to run its business operations on a daily basis. = O Operational Expenses?

You Can Fix A Vehicle Without An Estimate…. You Can’t Make A Profit Without An Estimate….

The ESTIMATE Recovers The Operational Expenses Of Your Facility! = Your Purpose is Operational Expenses!

You Make Every Salary Possible! FINDING PURPOSE

“Action In The Course Of Execution”

▸ Standard Operating Procedures (SOP)

▸ Access To Procedures

▸ Training Labor Time Survey

= How Does A Vehicle Get To The Shop? =

Drive-In: Tow-In:

List the ‘work’ you do for each of these Does the required change if you are a DRP? STANDARD OPERATING PROCEDURES (INTENTION) ▸ Pre-Inspection

Customer Interview

OEM Procedure Initial Review

Vehicle ID

Check – in Report

UPD Time = Money R/O Number Assigned

Keys Tagged

R/O Pouch

Wash Vehicle *

Windshield Sticker STANDARD OPERATING PROCEDURES (INTENTION) ▸ Pre-Inspection

R/O Pouch

‣ Damage Report

‣ Pre-Measuring

‣ Pre-Scan

‣ Parts Order

‣ Materials Order

‣ OEM Procedures

‣ Departmental Checklist #SomethingGoesHere

‣ AC/Antifreeze/4-Wheel Align/Dealer/Sublet Flags ESTIMATING WITH PURPOSE

STANDARD OPERATING PROCEDURES (INTENTION)

▸ Photos ESTIMATING WITH PURPOSE

STANDARD OPERATING PROCEDURES (INTENTION)

▸ Photos ESTIMATING WITH PURPOSE

STANDARD OPERATING PROCEDURES (INTENTION)

▸ Photos

Point of Impact

Establish your impact… now think like a fighter! ESTIMATING WITH PURPOSE

STANDARD OPERATING PROCEDURES (INTENTION)

▸ Photos

Showing what’s not damaged is equally as important as what is……. ESTIMATING WITH PURPOSE

STANDARD OPERATING PROCEDURES (INTENTION)

▸ Pre-Scan

MIL Misconception

DTC’s Present/History

System Operation

SRS OWC/OWS

Mechanical Diagnosis ESTIMATING WITH PURPOSE

STANDARD OPERATING PROCEDURES (INTENTION)

▸ Pre-Measure Understanding of Applied Forces

Wheel Position Structure Wheel Base Suspension Closure Panel Operation

Tram or Tape Measurements Gap Measurements THE PROCESS

Time = Money ESTIMATING WITH PURPOSE

WRITING THE ESTIMATE ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Replace: Emblem $33.04 CAMRY $29.36 XLE $26.41 ESTIMATING WITH PURPOSE

What Are My Steps? How Are They Included? Operational Expenses?

Pre Wash Cover Seats Guide To Estimating / P-Pages Parts Measure Mark Align Does It Overlap Another Operation Labor Remove Emblems Materials Clean-Up Adhesive Measure Mark Align Masking R&I Car Cover Buff Glaze Final Detail ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Emblem/Nameplate Replacement

✓ Pre-Wash $5.00 0.5 ✓ Cover, STG Wheel, Seat, Floor $5.00 0.3 ✓ Replace Emblem $33.04 0.1 ✓ Measure, Mark and Align 0.3 ✓ Remove Adhesive Residue $1.00 0.2 ✓ Replace “Camry” $29.36 0.1 ✓ Measure, Mark and Align 0.3 ✓ Remove Adhesive Residue $1.00 0.2 ✓ Replace “XLE” $26.41 0.1 ✓ Measure, Mark and Align 0.3 ✓ Remove Adhesive Residue $1.00 0.1 ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Emblem/Nameplate Replacement

✓ Mask Back Up Lamp, RT $2.00 0.2 ✓ Mask Back Up Lamp, LT $2.00 0.2 ✓ Mask License Molding $2.00 0.2 ✓ R&I License Plate 0.2 ✓ Cover Bag Car for Buff $5.00 0.2 ✓ Buff/Glaze/Swirl Mark Remove $5.25 0.5 ✓ Hand Glaze Deck Lid $5.25 0.5 ✓ Partial Polish LT/RT ¼ Panels $10.50 1.0 ✓ Partial Glaze LT/RT ¼ Panels $5.25 0.5 ✓ Detail for Delivery $12.00 1.0 ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Emblem/Nameplate Replacement

✓ Parts $151.06 ✓ Body Labor 7.1hrs @ $50.00/hr $355.00 ✓ Subtotal $506.06 ✓ Sales Tax $506.06 x 8.6250% $ 43.65 ✓ Grand Total $549.71

INTERESTING? Know the Procedures, P-Pages and Follow SOP’s ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Procedural Pages

THE BIG 3 BY NUMBERS Mitchell 24 pages Motor CCC/Pathways 38 pages Audatex 100 pages Total 162 pages

COMPARISON TO OTHER PROFESSIONS Pharmacists Reference 800 pages Law Desk Reference 1328 pages Physicians Desk Reference 3315 pages

ALL YOU NEED TO LEARN IS JUST 162 PAGES ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: General P – Page Info

General Information: Additions to Labor Times: 1. Parts Illustrations 1. Access Time 2. Part Numbers/Prices 2. Anti-Corrosion Materials 3. Remanufactured Parts 3. Rust Proofing Materials 4. Aftermarket/Knock Off Parts 4. Broken Glass Clean Up 5. Metal Material Types 5. Detail 6. OEM/NAGS Glass Information 6. Drain & Refill 7. Symbol Key/Legend 7. Electronic Components 8. Guide Layout Sequence 8. Fabrication 9. Definitions of Parts & Notes 9. Frame Set-Up 10.Labor Time Calculations 10.Free Up Rusted Parts 11.Wheel Alignments 11.Measure and Identify 12.Test Drive 12.Transfer Time ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Procedural Pages

INCLUDED OPERATIONS Are operations that are performed in conjunction with another operation.

Ex: R&I of Radiator and Condenser is generally an included item when replacing the Radiator Support.

NON-INCLUDED OPERATIONS Are operations that may or may not be required depending upon the vehicle or repair process used.

Ex: Aiming of the Headlamps of Foglamps is Not-Included in the Labor Time for Replacement of the Radiator Support. ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: TRIAL FIT PARTS

▸ Anytime a structural or non-structural component is repaired or replaced there will generally be multiple test fits of the Bolt-On components to ensure the Weld-On components are in the proper alignment, regardless of the type of structural repair equipment used. ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: TRIAL FIT PARTS ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Feather Edge, Prime, Block Sand

Replacement of panels include labor to sand the panel to 150 grit

Refinish labor starts at 400 grit (to that of a “New Undamaged Panel”)

Preparation of the area: 1. Sand 180 grit, 220 grit, 320 grit 2. Mask and Prime 3. Sand 220 grit, 320 grit ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: How to Calculate F/P/B

Body Filler Applications Body Filler Sanded with 150 grit ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: How to Calculate F/P/Ba ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: How to Calculate F/P/Ba

Example Calculations

Repair to Damage 5.0 hrs

5.0hrs x 40% = 2.0hrs This would be the time to sand with 180, 220 & 320/220WD & 320WD

2.0hrs x 20% = 0.4hrs This would be the time to mix, prime with 3 coats and clean equipment ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: How to Calculate F/P/Ba

Example Calculations

Feather/Block 2.0hrs (B) Shop Materials 2.0 x Rate/Cal Prime 0.4hrs (R) Acid Etch Primer 0.1hrs (R) Epoxy Primer 0.1hrs (R) Paint Materials 0.6 x Rate/Cal Mask for Primer 0.2hrs (B) Masking Materials $5.50 Car Cover $3.50/0.2hrs (B) ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: How to Calculate F/P/Ba

Masked and Ready for Refinishing Example Calculations

Body Labor (2.4 x $50) $120.00 Body Materials (2.0 x $3.50) $ 7.00 Refinish Labor (0.6 x $50) $ 30.00 Paint Materials (0.6 x $25) $ 15.00 Car Cover $ 3.50 Masking Materials $ 5.50 Total Cost $181.00 Fender Repair 5.0 x $50 $250.00 Total (w/o extras) $431.00

Parts Changer? ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Example Calculations

Comparison Others: All under Refinish Body Labor (2.4 x $50) $120.00 5.0hrs total labor/30% = 1.5 Body Materials (2.0 x $3.50) $ 7.00 1.5hrs x $50 = $75.00 Refinish Labor (0.6 x $50) $ 30.00 1.5hrs x $25 = $37.50 Paint Materials (0.6 x $25) $ 15.00 Car Cover $ 3.50 $112.50 Masking Materials $ 5.50 Refinish $30.00 Total Cost $181.00 Refinish Mats $15.00 Car Cover $3.50 Masking Mats $5.50 Fender Repair 5.0 x $50 $250.00 $166.50 Total (w/o add’l) $431.00 ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Not-Inc’d SRS Precautions

Repair and Welding Safety Follow OEM Recommendations 1. Unplug RCM (R&I Console) 2. R&I/R&R Air Bag 3. R&I/R&R Sensors 4. R&I Wire Harness 5. Recalibrate System 6. Clear Codes 7. Trouble Shoot/Load Tool 8. Recalibrate OWS ESTIMATING WITH PURPOSE

FRAME SET-UP

2.0 HOURS? ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Frame Set Up

INCLUDED OPERATIONS ? NOT-INCLUDED OPERATIONS

1. Install Vehicle 2. D&R Battery or Remove 3. R&I Wheels 4. Attach Clamps/Jigs 5. R&I/Move Lines/Parts 6. Remove Vehicle 7. Measure and Identify 8. Pre-Measure 9. Repair Mounting Areas 10. Refinish Mounting Areas 11. Mask Underbody 12. Additional Anchoring ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Frame Set Up

INCLUDED OPERATIONS 1. Install Vehicle 2. Measure and Identify 3. Remove Vehicle NOT-INCLUDED OPERATIONS 1. Pre-Measure 2. D&R Battery or Remove 3. R&I Wheels 4. Attach Clamps/Jigs 5. R&I/Move Lines/Parts 6. Repair Mounting Areas 7. Refinish Mounting Areas 8. Mask Underbody 9. Additional Anchoring ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Frame Set Up

FRAME SET-UP: 2.0 HOURS?

1. SRA Set Up (8 Mounts) 4.0hrs (Car-o-liner, Celette, CarBench, GlobalJug) 2. Monitor Realignment/Measurements 1.0hr 3. Realignment (If necessary) 0.5hr-3.0hrs 4. Additional Anchoring Celette 0.5hrs each 5. Additional Anchoring COL EVO 1.0hr each 6. 3-D Pre-Measuring 1.0 – 1.5hrs 7. Measure (Inc w/Bench/Fixture/Jig) 1.5hrs 8. Upper/Side Gantry Fixture/Jig 1.0 – 2.0hrs 9. 3-D Upper Body Measurement 1.0hrs 10. R&I Undershields & Components Book Time 11. R&I Engine Assy/Rear Suspension Book Time 12. R&I Exhaust System Book Time 13. Repair Anchoring Locations 1.0 – 3.0hrs 14. Primer Anchoring Locations 1.0hrs 15. Mask Underbody $6.00/0.6hrs 16. Refinish Anchoring Location 1.0hrs + CC/Mats 17. Masking Refinish Labor + Mats ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Radiator

Distilled Water ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE:

Additional Procedures: 1. Seal Coolant lines 2. Pressure Bleed/Purge Cooling System (Inc CCC) 3. Replace Hose Clamps 4. Replace OEM Anti-freeze 5. Seal Oil/Trans/Power Steering 6. Replace Fluids ESTIMATING WITH PURPOSE

CAN YOU ESTIMATE THE COST OF DOING BUSINESS? ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Shop Materials

Paint Materials 1. Primers 2. Under Coats 3. Top Coates

4. Clear Coats Shop Materials 1. Masking Tape 2. Masking Paper 3. Sand Paper 4. Detailing 5. Body Fillers ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Repair Materials

2015 V222 S-Class 1. Flutter 2. Sound Dampening 6 3. Seam Sealer 4. Structural Adhesive 1 2 5. Acoustical Foam 6. Bonding Adhesive (1) 5 @ $260.50 7. 3 types of Rivets (60) @ $1.50 ea 8. Total Cost for materials $1,400 3 4 ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE:Wheel Install for Mobility ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Wheel Install for Mobility

An Avg. of 0.2hr x $50 = $10.00 x Just 5 vehicles per week = $50.00

Let’s look at the Year ($50 x 52) $2,600.00

Let’s look at 5 years ($2,600 x 5) $13,000.00

This is just one Procedure at just $10.00 how many other items have you been missing? How much money have you left on the table? ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: ¼ Panel R&R, Weld DMG

HOW MANY PANELS NEED WELD BURN REPAIR? ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: ¼ Panel R&R, Weld Burn DMG

1. C-Pillar 2. ¼ Glass Opening 3. Gutter 4. Rear Body Panel, Outer 5. Rear Body Panel, Inner 6. ¼ Extension 7. Outer Wheelhouse 8. Rocker Reinforcement 9. Inner Rocker Panel ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Partial Refinish Full Clear ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Partial Refinish Full Clear

Application of Paint only makes up 12% to 15% of the total refinish time (3 to 5 min x 3 apps).

E.G. 3.0hrs – 15% (3.0 x 15% = 0.45 = 0.5) 0.5/3 = 0.16 = 0.2

3.0 – 0.2 = 2.8 – 0.4(-0.2) overlap = 2.4/2.6 2.4/2.6 + 0.4 for CC = 2.8/3.0 + 0.4 for overlap = 3.2/3.4

Should be a manual entry to avoid deductions ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: ESTIMATING WITH PURPOSE

Final Sand/Wet/Dry Sand, WRITING AN ESTIMATE: Polish/Rub Out & Buff ESTIMATING WITH PURPOSE

What Is The Proper Amount Of Time To Buff These Panels?

Yellow Dashed Boxed Area is the Damage. Refinish Times and Panels are: Refinish to Front Outer Door Panel 2.5hrs , Rear Outer Door Panel 2.5hrs, Blend Quarter Panel 1.5hrs (3.0), Blend Front Fender Panel 1.0hrs (2.0), Blend Upper Outer Roof Panel 0.7hrs (1.5), Blend Front and Rear Rocker Panel Moldings 0.5hrs each (1.0 each). ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: 1. Front Door 2.5hrs 2.5 2.5 2. Rear Door 2.5hrs 2.5 2.5 3. Quarter 1.5hrs 1.5 3.0 1.0 2.0 4. Fender 1.0hrs 0.7 1.5 5. Upr Otr Roof Panel 0.7hrs 0.5 1.0 6. Rocker Moldings 0.5hrs each 0.5 1.0 Total 9.2 Total 13.5 X 30% X 30% Total 2.76hrs Total 4.05hrs ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: ADDITIONAL REQUIRED PROCEDURES

CAR COVERS: CAR CLEANING/WASHING: 1. During Repairs 1. Pre-Wash for Repairs 2. Removed Components 2. Prior to Priming 3. Floor Mat, Seat & Wheel 3. Prep for Booth/Refinishing 4. Interior 4. After Refinishing (Air & 5. For Priming Tack) 6. For Refinishing 5. After Buffing 7. For Buffing and Polishing 6. After Polishing 8. For Welding (Spark Paper, 7. Final Detail for Delivery Blankets) ESTIMATING WITH PURPOSE

PUTTING IT ALL TOGETHER ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Quarter Panel Replacement

2015 Audi S5 Quattro ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Quarter Panel Replacement

• Damage to Left Rear Quarter Panel • Labor Rate is $50.00 per hour • Mitchell Calculator for Shop, Refinish and Buffing Materials plus 35% mark-up • Tax is 8.6250% ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Vehicle Inspection and Diagnosis ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Photos ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: The Research

Audi erWin General Information Body Repair, Body Collision Repair

Prior to the Damage Report ✓Check the Pre-Scan ✓Pre-Measuring ✓OEM Website/ALLDATA ✓General Procedures ✓Specific Procedures ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: The Research ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: The Research

▸ No Lines Have Been Written!

▸ Meeting With Production Manager

▸ Do We Have The Equipment?

▸ Do WE Have The Knowledge? ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: The Research

▸ What Requirements (lines) Are From Our Research Not Inspection

▸ What Logistics Issues Are Present ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Damage Report

When Writing the Report • Keep it in the family

• Put all materials and operations associated with

the component together in the same grouping.

• Miscellaneous Operations should be inclusive of

operations to vehicle as whole, not to an

individual component, or operations that cover

multiple components. It is not a wish list. These

are necessary operations.

NO LIST! ESTIMATING WITH PURPOSE

WRITING AN ESTIMATE: Damage Report ESTIMATING WITH PURPOSE

Damage Report ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE ESTIMATING WITH PURPOSE

FINAL TOTALS WHAT OPERATIONS DID YOU NOT HAVE TO DO? WHAT OPERATIONS WOULD YOU HAVE DONE FOR FREE? ESTIMATING WITH PURPOSE

CUSTOMER PURPOSE • THEY ARE PRIMARY • TRAIN THEM • ARM THEM • SET THEM FREE ESTIMATING WITH PURPOSE

NEGOTIATING BEST PRACTICES

1. Be careful what you say at the beginning and how you say it. 2. Set a friendly tone. 3. If you negotiate with a stranger, take time to establish rapport and develop relationship before the negotiations begin. 4. Find ways to chat before the negotiation is scheduled to start. 5. Avoid confrontational negotiations and bargaining over positions. Positional bargaining often impedes negotiations, destroys relationships and produces unwise agreements. 6. Participants should act not as adversaries, but as partners trying to solve a problem jointly. 7. Separate the people from the problem, to reach an agreement amicably. 8. Always be prepared and have documentation. ESTIMATING WITH PURPOSE

NEGOTIATING TIPS 1. Don’t be afraid to ask for what you want 2. Be able to prove why you need it 3. Shut Up and listen. Listen 75% and talk 25% 4. Never answer with “Yes” or “No”. Explain why 5. Do your homework and practice 6. Always be willing to walk away 7. Do not be in a hurry (never send an email same day) 8. Be optimistic and confident 9. Focus on the other side’s pressure, not yours 10.Show the other side how their needs will be met 11.Do not give anything away without getting something in return 12.Don’t take the issues or the other person’s actions personally 13.Always pause before answering ESTIMATING WITH PURPOSE

NEGOTIATING DO AND DO NOT

DO NOT DO

1. Don’t see it as a contest 1. See it as a joint effort 2. Don’t attack people 2. Make them prove their position 3. Don’t make it personal 3. See it as just business 4. Don’t focus on differences 4. Focus on the procedures 5. Don’t concede easily 5. Make concessions you can live with 6. Don’t get others involved 6. Excuse yourself and get the answer 7. Don’t lose the control 7. Breath and take a break 8. Don’t ask a question you do not know the 8. Know your stuff answer to PURPOSE

“EXCELLENCE IS THE EXPECTATION NOT THE EXCEPTION”

Teddy Leroy Felder (aka Dad) ESTIMATING WITH PURPOSE

WHAT DO YOU DO TOMORROW?

Consensus Building Practice Research Foster A Culture Of Excellence! Develop SOPs Enforce to Reinforce ESTIMATING WITH PURPOSE THANK YOU!