Why its important to implement
VDA is most valuable person for profitability. Must know true shop hourly rate for effective negotiation. Business needs internal cost analysis to determine actual profitable rate.
VDA Business Value
The Vehicle Damage Assessor is the most valuable person in the business when it comes to profitability.
Estimate Accuracy Impact
If they miss items on estimates, then the business suffers or if they are too expensive and do not negotiate well then, the business may lose work providers over time because of not being competitive.
Industry Negotiation Element
Even though the Remove and Refit times and hourly rates are set there is the element of agreed value in the industry.
Cost Analysis Requirement
The business should have carried out internal cost analysis and understand how much it cost per hour to run the business, this is the ACTUAL shop rate required to be profitable.
Shop Rate Knowledge
An important factor when they negotiate work for the business is their ability to knowing what the business shop hourly rate is.
Business Impact
Without shop rate knowledge, VDAs cannot negotiate profitably. Unknown true costs create high danger of unprofitable operations.
Profit
If the VDA does not know the hourly shop rate is, it will be impossible for him to negotiate for the business and be profitability.
Profit
If the business does not know it's true or ACTUAL hourly rate to running the shop, there is a high danger of not being profitable and viable.
action steps
Calculate true hourly running costs immediately and ensure all VDAs know the actual shop rate required for profitability.
Shop Rate Cost Analysis
The business should carry out the exercise of calculating its true hourly running cost as soon as possible and this information should be known by the VDA's.
Related tasks
Milestone:
02: Streamlining VDA Processes