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Insurer lobbyists were stunned when told by CRA that aftermarket parts have a high return rate due to poor quality, misapplication and damage. Repairer Joe Hinkens of Mainline Autobody, Santa Maria, and the CRA board are challenging members to send their data on aftermarket part returns to Allen Wood, CRA executive director, who will compile the results in data to support SB 1059. Please email Allen:
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. Here is Joe’s report:
Aftermarket Parts Usage
To: Aftermarket Vendors and Insurance Representatives From: Joseph Hinkens
We are very committed to maintaining high levels of customer satisfaction. Delivering the vehicle in a timely manner is a big part of achieving this objective. The benefits of a satisfied customer translate to repeat business, renewed policies, reduced claims costs, reduced administration, and a smoother claims & repair process. The use of aftermarket parts in our area poses some unique challenges from a geographic standpoint. Yet the most significant hurdle we are faced with is the huge ratio of rejected parts. These rejects range from poor fit, incorrect application, to damaged parts, just to name a few. Below, I’ve illustrated the data collected in our shop for our most recent one-month billing cycle.
1. LKQ Corporation 22 Invoices 15 Returns 68% Failure Rate 2. Alpha Distributors 14 Invoices 8 Returns 57% Failure Rate 3. Dynacorn 25 Invoices 12 Returns 48% Failure Rate
The average for these three examples is a whopping 57% failure rate. These deficiencies result in costly production delays, decreased cycle time, added administration costs, and most importantly, reduced customer satisfaction. Because we are graded on all of these areas by our insurance partners, I think it’s important to share this information.
In anticipation of the “Well you’re the only one….” response, I counter with the obvious rationale, that we’re the only one that has taken the time and effort to collect and share the data. I’d like to suggest that our insurance partners strategize with us soon in an effort to correct this situation. Not only does our shop performance suffer under these circumstances, but we both share the certainty of dissatisfied policy holders and customers alike.
I welcome your reply.
Joseph Hinkens Mainline Autobody 1104 West Betteravia Road Santa Maria, CA 93455 |
