Shop Talk Online

 **News You Can Use Today**

May 2007

Hidden Liability In Your Shop

Sales tax may be among the largest liabilities in your shop. Preliminary findings suggests that insurers, networks and claims processors are not paying accurate sales tax, a practice that leaves shops with long-term liabilities in the event of a sales tax audit. Since shops are responsible for collecting and remitting proper sales tax it is shops that will be charged with substantial penalties for each instance of improperly collected sales tax. The Nebraska Autobody Association is conducting a one-minute sales tax survey that will be used to address this issue with regulators. Your participation in this project is vital and you can remain anonymous. Click the following link to complete NABA's one-minute survey.

http://www.nebraskaautobody.com/surveys/2007/salestax.htm

State Farm Assesses Shop Performance

State Farm recently reviewed its program shops ranking a number of factors including: concerns about refinish, body and structural repairs; average repair drop-off to pickup; average rental; repair v. replace; percent of OEM parts used among other criteria. The detailed shop analysis was to inform shops where they rated in comparison to other shops. But will the widespread use of performance audits lead to the same slippery slope that gutted the automotive glass industry? Some analysts predict that a culling of the herd is inevitable and that program shops will come under increasing pressure to conform to standards that benefit insurers with diminishing focus on quality and safety.

Drivers Scrimp On Auto Insurance

With an economy that continues to be tightening many families may try to save money by dropping collision coverage, according to the National Association of Insurance Commissioners. A recent survey by the Detroit News may be indicative of nationwide trends. The survey asked if consumers tried to save money recently by cutting back on car insurance coverage? 1 percent dropped comprehensive coverage, 15 percent raised their deductible, 5 percent dropped collision coverage and 41percent dropped both comprehensive and collision.

Geico & Progressive Increase Market Share

According to Research & Markets Property & Casualty insurers have entered a “soft market” where premium growth will hover from zero to 5% during the next few years. Insurers are dealing with the sluggish market by spending more on advertising and investing in advanced risk assessment tools. Companies that have experienced market share growth during the past five years are GEICO and Progressive. GEICO’s market share during the past five years increased by 2.3% and Progressive was up 1.6 percent  

Technology Poised To Reduce Car Accidents

NHTSA administrator, Nicole Nason, who gave the keynote address at the 2007 convention of the Society of Automotive Engineers Convention said that vehicle automation will save lives and reduce accidents. In addition to improving the crashworthiness of vehicles, new crash avoidance systems will take control away from the driver and turn it over to on-board computers. Innovations include electronic stability control, lane departure warnings, collision avoidance devices, and vehicle-to-vehicle communications. “The next generation will not only want it, they will demand it,” Nason said.

Health Benefit Costs Up 8 percent

According to the 2006 Kaiser Family Foundation’s Employer Health Benefits study, employers averaged a 7.7 percent annual healthcare cost increase from 2005 to the 2006 benefit year.

No Relief For Higher Gas Prices

Soaring cost of gasoline is not expected to ease anytime soon, and some analysts predict prices may ratchet even higher. Experts blame strong demand, declining imports, and insufficient refinery capacity. “I am in the camp that we will go higher, perhaps a lot higher. I think we are one disruption or problem away from $4-a-gallon gasoline,” said Phil Flynn, a veteran oil analyst. Potential foreign disruptions in supplies from terrorism and political turmoil in some oil producing nations are causing jitters that are keeping upward pressures on oil prices.

Use of Internet By Shops Increase

According to a survey conducted by ASA, 99 percent of ASA collision repair facilities and 91 percent of ASA mechanical shops have Internet access and use the Internet to communicate and retrieve business-related material. 94 percent of collision shop respondents said they used the Internet to correspond through e-mail, 71 percent accessed online repair information, 59 percent purchased tools and equipment and 58 percent transferred funds electronically. The use of Web-based training was also up with 35 percent of collision repair shops taking Web-based technical training and 23 percent opting for online management training.

Dean Ackerman’s Estate To Be Auctioned

Gothenburg Body Shop will be auctioned Saturday May 26, 2007 beginning at 10:00 a.m. at 920 Avenue L in Gothenburg. Many of you still remember Dean who was an active member of his industry, community and association. An auction flyer can be seed at

http://www.nebraskaautobody.com/newsletters/adsandcoupons/ackerman.pdf

Support Your Association

This newsletter is brought to you free, one of numerous benefits you receive by supporting the Nebraska Autobody Association. member shops are listed in the only Nebraska search engine specifically for collision repair. Over 150 people a month search for specific shops using the NABA search engine. As an added bonus, you can get a $50 coupon for your next recycled part from S&M Imports at

http://www.nebraskaautobody.com/newsletters/adsandcoupons/s&m.pdf

Information in this newsletter was obtained and/or compiled from various sources believed to be reliable. Readers should consult with manufacturers’ directions, manuals and/or appropriate business professionals before acting on any information reported herein. The views represented herein are those of the editor. It should not be implied that any information or opinions are those of the NABA directors, members, its management, or the publisher.