SOURCE: Scene Genesis

February 27, 2008 10:18 ET

Autobody Shops Squeezed by Rising Costs and Low Reimbursements Must Get Better at Business, Eversman Says on Scene Genesis Podcast

PITTSFORD, NY--(Marketwire - February 27, 2008) - Autobody shops aren't being paid enough by insurers to cover their soaring costs, industry expert Erica L. Eversman says in a hard-hitting new podcast sponsored by Scene Genesis.

State regulators are becoming more concerned that low payments under direct-repair programs practically force some shops to make unsafe repairs, says Eversman, general counsel of the consulting firm Vehicle Information Services, Inc., in Bath, Ohio.

"Something will have to give way," she says.

High energy prices have hiked repair shops' costs, but reimbursements aren't budging, and shop owners find it hard to invest in new equipment or staff training, Eversman adds. In the long run, squeezing bodyshops isn't good for the insurance industry either, she says.

In the podcast, online at www.sceneexchange.com, Eversman predicts that more bodyshops will go out of business. Survivors will be those that become more business-oriented.

This is the second in "Topics in Ten," a monthly podcast that brings opinions and ideas to the collision repair industry.

About Scene Genesis

Scene Genesis offers SceneExchange, a novel Web-based marketplace that lets participating insurance companies' customers choose among participating auto-repair shops for prompt, high-quality repairs. More than 3,000 autobody shops nationally have signed up.

SceneExchange puts collision shops on an even playing field and puts control over workflow into the shop owners' hands. During the product's pilot in the Carolinas, shops said that customers were better informed about the repair process -- as well as more engaged -- leading to higher satisfaction rates.

For more information, visit www.scenegenesis.com and www.sceneexchange.com or contact Beth Bailey of Scene Genesis at 585-387-9883 or bbailey@scenegenesis.com.

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