The motor trades and repairers associations have created a tool that can help panel shops with quotes.
The Motor Trades Association of Australia (MTAA) and the Australian Motor Body Repairers Association (AMBRA) have launched a new cost calculator tool for its motor body repair business members.
The calculator has been designed to accurately identify costs and help determine an hourly rate that is “fair, reasonable... verifiable, defendable and in accordance with sound business and accounting practice.”
According to AMBRA chairman Jeff Williams, “Too many motor body repair businesses, who have heavily invested in training, equipment, tooling, and in meeting the demands of a rapidly changing automotive industry, are being forced to accept rates and charges demanded by work providers that simply do not reflect the costs of their business and placing them at a significant disadvantage or even jeopardising their future.
“Most work providers to the motor body repair industry have their own calculators or processes that are required to be applied in order to secure work. These tools or processes rarely capture the complete picture and contain elements or parameters designed to produce a pre-determined hourly charge rate outcome.
“This leads to different motor body repair businesses, with different capabilities or services, differing levels of staff and costs, and even different locations being subjected to a rate for their services which are not reflective of their actual costs - even though they may have already made significant improvements, generated efficiencies and productivity enhancements to be competitive,” Williams said.
The calculator, which is available now, was developed with input from all MTAA constituencies, independently analysed by business advisory and accountancy firm BDO, and examined by the Australian Tax Office.
An additional benefit is that it can highlight operational areas that have the potential for efficiency or productivity improvements, the organisations said.