Updated July 16, 2015
Auto Body Shop Profit in Chicago Illinois
Maintaining higher profits in the body shop business
Its is harder and harder to maintaining body shop profit.
Its very difficult to find parts. Even more difficult to find trained technicians who will actually fix cars rather than just run up you return percentages. When you quote these jobs, you look into the book to see how long it should take to complete a particular job. Somehow the book is never correct because no one ever really knows what your going to find once you open up some of these cars. Handling the insurance companies is a nightmare and a half. Getting paid is sometimes impossible. If you have too many returns or are not doing almost perfect work, the insurance carrier drops you. The carriers would rather deal with less shops, rather than more. The industry has become much more difficult in the past decade.
Let’s not forget that the carriers want to pay you the same labor costs per hour, or less, than they were paying fifteen years ago. Body shop profit is not the easiest way in the world to feed a family.
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Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.