Published on February 4th 2018 in

MTA NSW gets real about the true costs of motor vehicle body repair

NCR MTA NSW LOGO
A new cost calculator tool that will assist motor body repair businesses across New South Wales to transparently identify their costs and a charge-out hourly rate for their business, was launched today by the Motor Traders’ Association of NSW (MTA NSW), and its Motor Body Repair Division, as a Member of the Motor Trades Association of Australia (MTAA).

The tool, which has been independently analysed by national business advisory and accountancy firm BDO and examined by the Australian Tax Office (ATO), enables all motor body repair business owners and management to capture all of the costs associated in running their businesses. The tool also includes helpful worksheets for profit and loss, tradespersons costs and has the added potential of highlighting areas of business operations where further efficiencies can be made and/or improvements to productivity.

MTA NSW Chief Executive Officer, Stavros Yallouridis, said “the cost calculator would help NSW motor body repair businesses not only identify their actual costs of doing business, but assist in determining a fair, reasonable and transparent ‘shop’ or business charge-out hourly rate that was verifiable, defendable and in accordance with sound business and accounting practice.”
NCR Stavros Yallouridis

“Too many motor body repair businesses, who have heavily invested in training, equipment, tooling and in meeting the demands of a rapidly changing automotive industry, are being forced to accept rates and charges demanded by work providers that simply do not reflect the costs of their business and placing them at a significant disadvantage or even jeopardizing their future.” Mr Yallouridis said.

“Most work providers to the motor body repair industry have their own calculators or processes that are required to be applied to secure work. These tools or processes rarely capture the complete picture and contain elements or parameters designed to produce a pre-determined charge rate outcome. This leads to different motor body repair businesses, with different capabilities or services, differing levels of staff and costs, being subjected to a rate for their services which are not reflective of their actual costs – even though they may have already made significant improvements, generated efficiencies and productivity enhancements to be competitive,’’ he added.

MTA NSW Motor Body Repair Division Chairman and MTA NSW Board Director, Mr Brian Cowan said the Association had worked with its motor body repair members, its national association, the MTAA, and other stakeholders including prominent accountancy firms in developing the cost calculator.

“We expect that use of the cost calculator will improve transparency over costs and charges and help the Association to defend its members rights to fair and reasonable compensation reflective of the input costs and not some determined rate by a work provider,” Mr Cowan said.

This is one of a range of initiatives being progressively rolled out by MTA NSW to not only improve business acumen during a period of unprecedented change, and sustained pressure from dominant market participants, but also ensure consumer confidence, and consumer choice of repairer,” Mr Cowan added.

The calculator has already been distributed to MTA NSW Member motor body repair businesses.

 

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