Jasmine De Wys has a remote estimating, training and consultancy business called Bodyshop Solutions. De Whys provides a regular estimating tip segment in our e-news letter to make sure you don't let the dollars slip through your fingers. Just search Estimating tips to see more. This one is part two for those who run predictive cost models. Click here for part one.
Build the Vehicle Correctly
In a PCM environment, one of the most important (and most commonly missed) steps is taking the time to build the vehicle correctly from the start.
That means:
- Selecting the correct vehicle schedule(NTAR /LTAR)
- Completing all model selections properly (Audanet)
In a busy, high-pressure environment, it’s easy to rush this step or rely on auto-population of the Vin in Audanet, but when model selections are missed or incorrect, it flows through the entire estimate.
It impacts:
- R&R allocations
- Paint calculations
- Overall accuracy of the quote
This is a known estimation behaviour across the industry, and it’s where a lot of estimates start to fall over.
In a PCM model especially, you need to capture the vehicle accurately and build the quote properly from the outset, because everything downstream relies on it.
Understanding Parts Strategy in a PCM Environment
In a PCM environment, parts selection plays a big role in how the job ultimately performs, but it needs to be approached the right way.
Naturally, we want to repair where possible. That’s where the value sits, both inside and outside of PCM. The key is finding legitimate ways to balance parts and labour without having to adjust parts profit at the end of the job to make the model fit.
One practical approach is the use of second-hand parts, where appropriate.
Instead of applying full markup to second-hand parts, you could:
- Adjust the parts margin appropriately
- Introduce strip and repair used panel operations into the estimate
This allows you to:
- Accurately reflect the work being carried out on the floor
- Move value into labour where the work is actually happening
- Maintain a balanced and “clean” estimate without end-of-job adjustments
It’s a practical technique that supports both accuracy and cost control, while still keeping everything aligned.
Like all PCM strategies, the key is that it must be fair, reasonable, and reflective of the actual repair.
Managing Parts Profit in a PCM Environment
In a PCM environment, how you manage parts and parts profit is critical, but it needs to be done strategically and legitimately.
One of the biggest traps is trying to cut parts profit at the end of the job to make it fit a batch.
If you’re consistently doing this, and you’re quoting accurately, documenting properly, and following best practice, it’s often a sign the model itself isn’t working and may not be sustainable at the current rate.
From a day-to-day estimating perspective, the focus should instead be on managing parts selection and pricing upfront.
This includes:
- Sourcing competitive parts pricing using platforms like PartsCheck or Repair Connection
- Considering second-hand parts, with adjusted margins and appropriate labour (e.g. strip and repair used panel)
- Applying >50% paint allowances where applicable on second-hand parts due to additional prep requirements(Audanet)
- Being open to certified aftermarket parts where appropriate
- Understanding parallel part options and pricing
A common approach is to align pricing with what would realistically be accepted in a line-by-line environment.
Example scenario for consideration-
Dealer price matches on a bonnet (fast moving part) against Parallel.
In a line by line setting, when sending to an assessor he will cost control those parts and identify if there are alternatives to the dealer available on the bonnet. If they can find this option available, you will receive an authority back with-Parallel available 80% of list.
Now considering this scenario in a line by line setting (but applied to PCM)-you could still select the dealer part as it’s the cheaper option-but change the mark up to 80% of list.
The key is to:
- Make informed decisions upfront
- Avoid reactive adjustments at the end of the job