VRS Overview
We at National AutoBody Research (NABR) believe the Variable Rate System (VRS) is the solution to the Collision Repair Industry’s labor rate problem, by offering four key things our research shows the industry desperately needs to achieve sustained profitability:
(1) An Independent, Third Party to Conduct Unbiased Labor Rate Surveys.
NABR is an independent third party, not tied to auto body shops or insurance providers. We see the need for free enterprise to work and work properly. As an independent third party, NABR conducts impartial surveys and does not hide, exclude, or manipulate survey data or results for any party's interest, thereby creating a level playing field for everybody.
(2) Continuous Measurement & Reporting of True, Market-Based Labor Rate Ranges by Geographic Area.
Most labor rate surveys we have seen are conducted annually, providing only a “snap-shot” of rates measured at a fixed point in time, even though shop costs and expenses change and increase continually, thereby making an annual survey rate quickly obsolete. In contrast, VRS surveys are available online 24/7/365, enabling shops to report their rates to the VRS anytime and have those new rates included in labor rate reports within approximately 24 hours.
Further, VRS labor rate reports show a range of rates in the market, not just one price for all shops. Collision repairers are different, so it makes sense that their prices will be different. Just like any other product you buy (for example, a computer), there are versions of that product that are less expensive and other versions that are more expensive. There is a range of acceptable prices in the market, not just one price for all computers. It's the same for repair centers.
Lastly, the Variable Rate System technology determines labor rate ranges down to the ZIP code level together with a mileage distance from that ZIP, which better reflects a collision repairer's competitive market and how consumers shop. It is not limited by city, county, or state lines, or any other pre-defined region.
(3) A Way to Differentiate Shops to Justify Different Prices and Payments.
Many insurers desire to pay a single "prevailing rate" to all shops, regardless of their level of training, certifications, and equipment. By contrast, the VRS methodology purposefully uses these factors to differentiate quality among shops and produces a range of rates, empowering them to charge higher rates than other shops with lower levels of training, certifications, and equipment.
(4) Easy to Use Tools that Helps Shop Determine the Rates Needed to Meet Their Profit Goals.
In our conversations with shops, NABR finds that some shops struggle to determine what labor rates they actually need to charge to be profitable, confusing this with what rates they collect from insurers. To help solve this problem, NABR created and developed a set of tools (included with your VRS subscription): the VRS Cost of Doing Business calculator, the VRS COLA (Cost of Living Adjustment) Calculator, and the VRS Labor Rate & Profit Calculator online tools, which use a shop’s basic financial information, together with market rate ranges, to help reveal the rates needed to achieve the shop’s profit goals.
The VRS subscription includes a set of online tools that help shops address all of these issues.
National AutoBody Research is committed to the highest level of excellence and a never-ending quest for simple, easy to use solutions that achieve real results for the collision repair industry. The Variable Rate System’s enhanced survey methodology and innovative technology represent a real breakthrough for the industry’s long-standing problem of stagnant labor rates.
We respectfully ask for an opportunity to meet with you and show you how the Variable Rate System can help you and other collision repairers in your area achieve the labor rates and profits they deserve. Request a free, no-obligation demo of the VRS.
(1) An Independent, Third Party to Conduct Unbiased Labor Rate Surveys.
NABR is an independent third party, not tied to auto body shops or insurance providers. We see the need for free enterprise to work and work properly. As an independent third party, NABR conducts impartial surveys and does not hide, exclude, or manipulate survey data or results for any party's interest, thereby creating a level playing field for everybody.
(2) Continuous Measurement & Reporting of True, Market-Based Labor Rate Ranges by Geographic Area.
Most labor rate surveys we have seen are conducted annually, providing only a “snap-shot” of rates measured at a fixed point in time, even though shop costs and expenses change and increase continually, thereby making an annual survey rate quickly obsolete. In contrast, VRS surveys are available online 24/7/365, enabling shops to report their rates to the VRS anytime and have those new rates included in labor rate reports within approximately 24 hours.
Further, VRS labor rate reports show a range of rates in the market, not just one price for all shops. Collision repairers are different, so it makes sense that their prices will be different. Just like any other product you buy (for example, a computer), there are versions of that product that are less expensive and other versions that are more expensive. There is a range of acceptable prices in the market, not just one price for all computers. It's the same for repair centers.
Lastly, the Variable Rate System technology determines labor rate ranges down to the ZIP code level together with a mileage distance from that ZIP, which better reflects a collision repairer's competitive market and how consumers shop. It is not limited by city, county, or state lines, or any other pre-defined region.
(3) A Way to Differentiate Shops to Justify Different Prices and Payments.
Many insurers desire to pay a single "prevailing rate" to all shops, regardless of their level of training, certifications, and equipment. By contrast, the VRS methodology purposefully uses these factors to differentiate quality among shops and produces a range of rates, empowering them to charge higher rates than other shops with lower levels of training, certifications, and equipment.
(4) Easy to Use Tools that Helps Shop Determine the Rates Needed to Meet Their Profit Goals.
In our conversations with shops, NABR finds that some shops struggle to determine what labor rates they actually need to charge to be profitable, confusing this with what rates they collect from insurers. To help solve this problem, NABR created and developed a set of tools (included with your VRS subscription): the VRS Cost of Doing Business calculator, the VRS COLA (Cost of Living Adjustment) Calculator, and the VRS Labor Rate & Profit Calculator online tools, which use a shop’s basic financial information, together with market rate ranges, to help reveal the rates needed to achieve the shop’s profit goals.
The VRS subscription includes a set of online tools that help shops address all of these issues.
National AutoBody Research is committed to the highest level of excellence and a never-ending quest for simple, easy to use solutions that achieve real results for the collision repair industry. The Variable Rate System’s enhanced survey methodology and innovative technology represent a real breakthrough for the industry’s long-standing problem of stagnant labor rates.
We respectfully ask for an opportunity to meet with you and show you how the Variable Rate System can help you and other collision repairers in your area achieve the labor rates and profits they deserve. Request a free, no-obligation demo of the VRS.
