ARA Survey Results: Post Your Door Rates

Posted door rates provide a usual, customary, and reasonable range of fees for services and supplies in a given geographical area.

Why is it important that all shops have a posted door rate? Fair compensation starts with industry posting and charging customary and reasonable rates. Posted rates do the following:

  • Help consumers understand the cost of repairs.
  • Aid consumer perception of industry by providing clarity around fair value for services.
  • Help both the industry and its partners understand the current fair market price for services.
  • Provide a mechanism to post new service offerings such as ADAS calibration and EV servicing.

The ARA thought it would be helpful to gather the following information to assist members with gaining a better understanding of the industry’s competitive landscape.

Survey Results

In a recent industry survey only 51% (collision) and 31% (glass) of respondents stated that they post a door rate, 16% (collision) and 39% (glass) do not have a posted rate, and 32% just use the ICBC rate.

Running an auto repair/glass shop today is a costly undertaking. In addition to the cost of obtaining and maintaining a building/facility, the high-tech diagnostic tools, equipment, and training needed to service modern vehicles require a significant investment.

Steps toward making a change:

  1. You have to believe that the industry can overcome the rate challenge. Vehicle repair requires significant investment. Do not shy away from asking for what you need.
  2. Make pricing transparent—show your posted rate for all categories of work. It’s part of establishing fair market value. The customer is the vehicle owner.
  3. Customer pay is the best way to measure market price. There is no reason to accept below-market rates or pay someone else’s contracted rate.
  4. Make the rate visible to everyone, and write an estimate at that rate and enforce it.

Survey Results—Responses from the industry yielded the following results:

  • Collision, Paint & Glass Rate [20.4% – $82.68 (ICBC rate) / 33% – $97.89, high $125/hr.]
  • Repair Material [28% – $6.53 (ICBC rate) / 36% – $7.82, high $20/hr.]
  • Paint Material [24% – $50.81 (ICBC rate) / 34% – $57.79, high $95/hr.]
  • Frame [24% – $94.50 (ICBC rate) / 29% – $116.19, high $130.79/hr.]
  • Mechanical [19% – $106.31 (ICBC rate) / 29% – $130.79, high $150.00/hr.]

*88% (collision) and 77% (glass) businesses reported they charge these rates where no agreement is in place.

When was the last time you reviewed your door rate?