“Insurance DRP PROGRAMS” across the USA ?

Am I Loosing Business to MSO's (Multi Store Operators)?

The collision repair industry is witnessing unprecedented consolidation by MSO’s (Multiple-Shop Operators or Multi-Store-
owners).  It seems that every single week now, one of the major multiple-shop collision operators has acquired yet another store.
Sadly, it has become a buyer's market for MSO's who are trying to gobble up all the Independent Stores - “Mom-&-Pop-Shops”.  
The reason for the sudden expansion of MSO’s is simply because Insurance Carriers have clearly demonstrated they prefer Multi-
Store-Owners and are currently driving 80-90 percent of their clients into the DRP Programs within the MSO environment.

Please read on if you are an independent store being challenged by MSO’s.  However, do not be discouraged - we do have a
solution and marketing help aids to see yourself through this challenge.

"Insurance Carriers" Remodeling Their DRP Programs and Body Shop Preference
Insurance Carriers are modeling their DRP Programs similar to healthcare HMO concepts.  Some Insurers are offering their
customers/insureds a lower deductible who use their DRP/MSO shops than those who go outside the network.  We're going to see
more of this in the future as insurance companies try to drive or steer their customers into their DRP programs within the MSO
environment.  The top 25 Insurance Carriers are moving away from Independent Operators to national MSO models for
operational efficiencies and related cost benefits.  80-90 percent of MSO’s work is driven through the insurance carriers DRP

Why Are Insurance Companies Favoring MSOs.
Insurers increasingly prefer to do business with MSOs for multiple reasons.  It's no longer about "Long Standing Relationships"
between the insurer and the body shop - NO MATTER HOW LONG YOU HAVE HAD THE “DRP ACCOUNT”.  It's simply about the
"All Mighty Dollar" while demanding higher performance at lower costs and shifting the DRP Administration duties onto the Body
Shop.  Insurers want to work with fewer providers or store locations, they want the ability to call one person for their needs, not 400
individual locations. Listed below are some other key factors why they favor MSO's and their expectations.
·        Single point of contact  (Only need to call one person who is accountable for multiple shops)
·        Store must have Excellent "Repair-Cycle-Times" (Run a Productive & Efficient Repair Process)
·        Stores must have strong KPI measuring tools and systems in place.
·        Be able to generate outstanding KPI Scores (Key-Point-Indicators - stipulated by the DRP Provider)
·        Must provide a minimal length of car rental for customers
·        Store must have a Strong Brand (market presence)
·        Have the ability to process the DRP administration duties effectively and efficiently at their cost (Labor & Materials)
To further impact the market place, especially for Independent stores, there has been a “significant” reduction in DRP shops as
industry consolidation increases.  For example, State Farm went from 20,000 shops 10 years ago to 10,000 shops in their DRP
Program today. They're seeking to lower it to 5,000.  This trend is being followed by many other DRP Providers who continue to
remove stores or planning to remove stores - this will especially apply to removing independent classified stores from their DRP

What Qualifies a Store to be Recognized as an MSO?
Although some insurers will consider 3-4 stores as an MSO many of the larger Insurance Carriers are now focusing on owners with
5-stores or more.  This is due to the aggressive rate of growth some MSO's have reached.  Typically "Networks" or "Franchises"
are NOT considered as being an MSO operation.  

How Fast Are MSO's Growing  -  Who Is My Competition?
Listed below are only a VERY FEW MSO’s who are growing at an alarming rate.  Their explosive growth rate, over the past 2-
years, far exceeds what they achieved between 2006 to 2012.

·        ABRA Auto Body & Glass  - Is one of the operations that has been aggressively growing its footprint across the U.S. It has
gone from 92 stores in 2006 to 124 in 2012.  In a series of acquisitions since 2012, ABRA has  expanded its portfolio to nearly 200
collision repair centers

·        Gerber Collision & Glass - Another fast growing enterprise now moving into Southern California has acquired over 200
locations across the USA

·        Caliber Collision - Has had pretty much the same growth rate between 2006 and 2012 as ABRA, going by number of stores
added.  It has gone from 68 stores in 2006 to 106 in 2012.  Our latest figures show Caliber now owns 191 stores as of September
2014 and has future plans for further expansion and consolidation.

·        CARSTAR - Expects to add 30 to 50 new stores in North America each year for the foreseeable future. "CARSTAR Autobody
Repair Experts" have 165 Locations while "CARSTAR Collision and Glass Service" have 159 Locations.  

·        The "Boyd Group" has grown to become the largest operator of non-franchised collision repair centers in North America by
number of locations.  Comparing their current status to the graph below, they now employ over 3000 individuals in more than 200
locations spanning five Canadian provinces and fifteen U.S. states.

·        Service King  - Grew from 20-stores in 2006 to 50-stores in 2012.  As of March 2014 they have more than doubled their
stores in the last 2-years and now operate 112 stores

I feel like I am . . .
            Surrounded by MSO's With No Chance for getting a DRP Account
                                                                          . . . How Can I Drive Business to My Store?

Firstly, NO-ONE should rely on or depend on work solely from Insurance Carriers DRP Programs or hope they will walk into your
store and just drop a "DRP Program" on your lap.  To be successful, you first have to give up magical and wishful thinking.   You
must trust enough to spend the time and money up front instead of struggling by with an amateurish flyer or just asking your
friends to spread the word around.  Word of mouth is good but how many mouths do you have that are actively spreading the word
right now and bringing in more work than you can cope with - again this is wishful and magical thinking. There is magic to be had,
but it's the magic that comes from making a plan and working it, instead of hoping that somehow you can beat the odds.

There is NO short cuts to marketing your store.  Secondly, there are NO effective marketing programs that are free.  

Yes, marketing your store will cost money but then so did the signage outside your building.  The reason you put up the sign on
your building is because . . .
                                      “A Business With No Sign, Is A Sign Of No Business”.

The same policy applies to marketing and advertising . . .
“If You Keep Doing What You’ve Always Done
You’ll Keep Getting What You’ve Always Got”


Launch Your own “Direct-Mail-Marketing” Campaign
into your “Service Area”