Florida Collision Repairer Wins Labor Rate Battle

From Hammer & Dolly, FEB 2013 Issue

Lakeland, FL-based shop owner Ray Gunder (Gunder’s Auto Center) placed a notice in his reception area last year and provided handouts to all auto appraisers and insurer claim representatives who visited his shop that new Labor Rates and allowances were in effect. The increases included labor, refinishing labor, frame labor, mechanical labor rates and the invoicing of PMCLogic for all body and refinishing related materials.

“It all comes down to the books … gross profit and net profit.” says Gunder of his decision to raise rates. “It’s been seven years since the rates have been moved in this area. I’ve looked at my net profits dwindling down into the danger zone. It was either change the rates to be able to make a profit, or close my doors. It was that simple. When (insurance people asked me, “Why do you need a rate increase?” I always asked them, “How many raises have you had in seven years?”

As of November 29, 27 insurers had elected to provide full compensation to Gunder’s Auto Center for the shop’s Labor Rates and material invoicing. (read the full article to see the list)

“For the last couple of months, they have been paying the rates for all procedures,” he says. There are no more issues now.”

Read the full article Florida Repairer Wins Labor Rate Battle (PDF download)

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