The ABP Retail Guide offers an excellent basis for Members to organise a standard pricing structure for their businesses.  The regular, researched increases will help ensure that vehicles can still be repaired to industry standards – in line with manufacturing methods following safe and sustainable protocols.  If your own charges are not linked to a market anchor such as the ABP Retail Guide, your business will not keep up with inflation and profitability will be eroded.

 

We encourage our Members to acknowledge the guide is for retail purposes and used as a reference point to negotiate volume discount models with corporate customers. Accordingly, it is suggested that discounts should be structured as a percentage of available/secured capacity, as shown below.

 

The example is rounded based on the current retail standard rate of £62.50.

 

Available/Secured Capacity                                        Discount from ABP Labour/Paint Index

 

You give 25% of your capacity to a customer            7.5%         =             £57.80                95%

You give half your workshop to a customer               12.5%       =             £54.70                90%

75% of your capacity to a customer                           17.5%       =             £51.50                85%

All of your capacity to one work source                     22.5%       =             £48.40                80%

 

It is assumed frictional costs and marketing are reduced the more volume undertaken from one source  to provide reasoning for a higher discount percentage. For example, including auto authority, enhanced payment terms, invoicing, and update procedures.

 

With inflation and the mass of challenges facing the Bodyshop market, the above rates should be used as the basis for renegotiating terms with work sources.  The discount structures are provided as a guide only for Labour and Paint Materials, and parts should be negotiated separately.

 

Members should also factor in frictional costs when considering a volume discount structure and adjust up and down according to your perceived “ease of doing business” further discounts could be considered for fast and reliable payment.

 

Zone 99 items should be re-negotiated using the NBRA zone 99 pricing model.

 

The NBRA does not encourage its members to differentiate between Fault and Non-Fault claims when agreeing net terms, as the process for each repair should be comparable.

 

Contracts offer repairers the ability to organise their individual business and tailor them to a particular client’s requirements without the need to spend vast sums on marketing to attract customers.  The NBRA recognises Members as individual dynamic businesses and encourages a balanced view when negotiating service level provisions for an equally diverse corporate sector.  We are committed to assisting all in the supply chain to overcome the challenging times, ensuring a sustainable repair community is available to service the public requirements.