Collision Centers are paid for labor, parts, paint & materials, and sublet operations. Parts Sales can be nearly half of the ticket in many cases, and margins are limited to the spread between the retail and wholesale price of the part, less any insurer concessions. A collision center must identify all needed parts, search available sources, and negotiate for the most favorable price, terms, and service level, order, receive, and store the part, install the part, return any used parts, and issue credits to the customer or insurer. This is a very complicated and complex process. In this month’s edition of Collision Solutions we will touch on a few of the issues involved in “Taming the Parts Monster”.
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