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Got laid off from insurance adjusting and have fallen back on body work and now have more than I can do on the side and am opening a shop of my own. I've got a guy I've started doing a few cars for and we are now moving into some long hall restoration stuff that is just to in depth to price by the job. Looking at pricing by the hour and I've never priced by the hour on this type stuff. Looking for advice from some of the guys who may do this or have had it done? Wondering about fair per hour restoration pricing and if I should add materials at the end or have the hourly rate also cover materials. Parts and panels would be separate of course and there would be a weekly draw based on recorded hours.
 

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I havent worked in alabama for a couple years, but right now in louisianna the going rate for insurance work is 58.00 per hour

indiana is currently getting between 46.00 and 52.00 per hour.
Illinois is 45 - 58.

Oklahoma is 45.00 texas is 45-48

keep in mind this is insurance rate for current models.

In indiana, the only 2 restoration shops i know of are 55.00 flat rate.

All of these states match the repair hours @ 30.00 per hour for materials, but in a restoration sitiuation i would bill by invoiced materials.

If you dont mind. What company laid you off?? I am a regional manager for an independent appraisal company. We might have work in your area.
 

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I havent worked in alabama for a couple years, but right now in louisianna the going rate for insurance work is 58.00 per hour

indiana is currently getting between 46.00 and 52.00 per hour.
Illinois is 45 - 58.

Oklahoma is 45.00 texas is 45-48

keep in mind this is insurance rate for current models.

In indiana, the only 2 restoration shops i know of are 55.00 flat rate.

All of these states match the repair hours @ 30.00 per hour for materials, but in a restoration sitiuation i would bill by invoiced materials.

If you dont mind. What company laid you off?? I am a regional manager for an independent appraisal company. We might have work in your area.
I was a staff adjuster for and independent inspection company Southeastern Claims Inc. They lost their account with Assurant Group Insurance Co.. I have a friend who has started his own adjusting company and all the adjuster's have 7 + years experience in both residential and commercial. A few have multi line experience. Shoot me a personal e-mail if you might be interested in using them. They all have their resumes ready as SEC has pretty mush went up in flames.

Just to get the materials straight 2 hours labor time would equate to $60.00 in materials ( @ $30.00 per Hr) and so forth and so on?

If I bill by invoiced materials I would need (I'm guessing) 5-10% mark up or could just charge a straight $80.00 per hour and that includes materials.
 

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Depending who you buy your materials from the invoice should have a retail price and jobber cost.

You would need to set up an account with your local supplier so you can buy the materials at wholesale and then sell to your customer at retail.

Your thinking is correct, if you worked 12 hours then you would bill 30.00 per hour, or 360.00. When we do it with our software, most insurance companies have a pre set limit in the estimating system @600.00.
 

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Your thinking is correct, if you worked 12 hours then you would bill 30.00 per hour, or 360.00. When we do it with our software, most insurance companies have a pre set limit in the estimating system @600.00.
I'm just a curious reader....so most ins. co. have a preset limit on materials of $600?
Seems awful low to me, or am I misunderstanding this? A replacement bumper, grill, etc can often far exceed $600.
 

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Advice.........

Yeah, don't do it! :no:

You worked as an adjuster, you know how these insurance companies can be. :rolleyes:

Do you really wanna do it? :turn:

I have many years on both sides of that fence and I know I wouldn't do it. :no:
 

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600.00 for paint and materials.

The average Deer hit or Rear end collision requires about 450.00 of paint and supplies, but the system will calculate around 1000.00 if you don't insert the limit.

The actual physical parts are billed at msrp
 

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I have to second Pandoras thought though. I wouldn't try it my self.

Heck just now I was in a shop when they received and order of 3m 8115 panel bond adhesive. Their cost was 42.00 per tube. The insurance companies will only pay 12.00 of that cost.

Every company I represent is cracking down and tightening to belts to the bare minimum. The days of making fair money without a lot of hassle are going away.
 

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If you're doing resto work and not insurance work, I, for one, as a customer, wouldn't be happy with a "blanket cost for paint material". I would prefer an actual cost of material, understanding fully that you will have a markup.. you get wholesale, and charge me retail, or something in between, and that's fine.

I just wouldn't like to be charged for $1000 (or $600) for paint and materials, and perhaps, in reality, the paint and materials were only $400.

I understand the insurance estimate discussion, but the OP stated expanding into long term restoration. So, again, if I contracted you to do a restoration, I would want the breakdown on primer, paint, clear, and then materials, which I would accept to include sand paper, tape, paper, sheathing whatever...

Just my two cents worth. Maybe Im unrealistic to expect that. But, someone could tell me they will use a high end paint, charge me $1500 for materials, and then use a cheaper paint, and I probably would never know the difference. If they have to itemize it, perhaps there is less chance of that happening.

Mike
 

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Here is something you should read.

Confessions of a Body Shop Owner
That is a great article, thank you for posting it. I also agree with Walaby, if I were a customers for a restoration I would want to know the details of the job. I would have periodic meeting where money changed hands, based on milestones. In any Walmart a digital camera is cheap insurance for making sure that the rose colored glasses are kept at bay. In my professional career, I take photos before, during, and after running tests. If something is wrong, a few pics are great talking points. Like that article states, there is a business side to running the shop, and many of today's customers would prefer to know more about the project in an email, or photobucket photo record.

If I had the skills for restoration work professionally, I would love to do what you are thinking of. Instead I have the business skills and some tools, and a car that has no idea what I am capable of....lol. I guess we will both find out.

Seriously, i wish you the very best of luck.
 

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I just finished doing the body and paint on a 64 Chevy 2. What we agreed on was x amount per hour to be paid at the end of the week, and he bought all of the materials. This way neither one of got screwed, seem to work out good for both of us. Now I realize you were asking about starting a shop; were I do maybe one a year.
 

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I just finished doing the body and paint on a 64 Chevy 2. What we agreed on was x amount per hour to be paid at the end of the week, and he bought all of the materials. This way neither one of got screwed, seem to work out good for both of us. Now I realize you were asking about starting a shop; were I do maybe one a year.
So, did you have any say so in the quality of the material (paint), and if so , did you have a way to verify?

Mike
 

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Here is something you should read.

Confessions of a Body Shop Owner
Ha Ha!

I like the name of the shop owner.....

my name is MARTINSR
For those of you that have been in the industry for a long time like myself, you probably remember all different brand names of paint.

One of them is "Martin-Senour" sold by NAPA and at one time had Martin-Senour outlets.

Notice anything odd?

Martin-Senour Paint --- my name is MARTINSR :bored:

Yep, another "reality" story. :rolleyes:
 

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Ha Ha!

I like the name of the shop owner.....



For those of you that have been in the industry for a long time like myself, you probably remember all different brand names of paint.

One of them is "Martin-Senour" sold by NAPA and at one time had Martin-Senour outlets.

Notice anything odd?

Martin-Senour Paint --- my name is MARTINSR :bored:

Yep, another "reality" story. :rolleyes:

Brian was a former Martin Senour paint rep and has been working in a shop for quite a while since.
A person would be very wise to listen to anything he says.
His Basics of Basics series is widely referenced on many forums.
In the 7-8 yrs I have known him on the web, I have only disagreed with him once. It was so minor I have forgotten what it was.
 

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Discussion Starter #17
Kinda getting of the subject of the post. I'm looking for pricing comparisons and how other shops price extended jobs. Basic all over paint jobs can be set priced based on what a person wants and how rough the vehicle is. Restoration jobs which usually include a detailed disassembly would be hourly. The materials figures is where I'm a little grey. Not sure weather to charge say $80.00 per hr and this will include materials or $40.00 per hr and use a minimum materials fee at the end or as a set deposit before the tear down begins.

Theres no way to know what a guy is putting on or in your car when your not there. I can show you receipts and stacks of empty high dollar clear cans and say it went on your car when I really used cheap clear or skimped on the coverage.
That's where the quality of the shops work stands for it's self and you have to trust that the shop actually cares about its name and what it puts it's name on.
 

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The resto shops I know itemize everything. Every piece of sandpaper is listed for the customer.
Labor is separate. Hours are even billed for phone or internet time spent searching for parts.
Pics are sent daily or weekly.
A prior agreement determines the pay periods.
 

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The resto shops I know itemize everything. Every piece of sandpaper is listed for the customer.
Labor is separate. Hours are even billed for phone or internet time spent searching for parts.
Pics are sent daily or weekly.
A prior agreement determines the pay periods.
That is a well oiled and professional shop.

One you will pay dearly at but as I always say, "you get what you pay for".

Unfortunately there isn't too many around because it is a difficult end of the business to survive in. The very good ones are booked years in advance and the ones that are just good to mediocre (but still do excellent work) don't survive.
 

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It is unfortunate, but if a shop is shady, they will be able to cheat the numbers however they want.

I am lucky my car is at my Bro-in laws resto shop, and I am doing the work until it's ready for blocking. Then there is a team of people that have been blocking and prepping cars at the same shop for several years.


If I walked into a shop and found short cuts taken or my car sitting covered in dust, I would FLIP out. I only want to build this car ONCE not drive it for 5 years and have to start over.
 
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