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Sublet markups

PostPosted: Wed May 10, 2017 9:28 am
by classicdoug
Every insurance company I deal with is paying a 25-30% markup on anything I sublet out of my shop (wheel repair, suspension, air bag diagnosis, alignments, etc.) except one. State Farm refuses to pay me a markup on sublet items. The will give me a "handling fee" of $50 or whatever suits them.

I'm not a Service First shop, but the Service First shops in town are getting paid a 30% markup on sublet items.

If you are not a Service First shop but are getting paid a sublet markup, please let me know.

Doug Leopold
Classic Collision and Restoration
Bryan, Tx

Re: Sublet markups

PostPosted: Tue May 23, 2017 5:29 am
by tommie b
Doug do you need State Farm work ? I am not a dpr for any ins co but just a small one man shop. Last one they did have a 25 % mark up on a sublet. Maybe make a call or visit to a claims office to work it out or tell them to take a hike............. A glass or other repairman come in your shop and uses your place free ? Don't think so! Good luck, others may chime in

Re: Sublet markups

PostPosted: Tue May 23, 2017 12:36 pm
by classicdoug

Thanks for the reply. No, I probably don't "need" their work, but lots of my regular customers have State Farm so I'd rather not throw them out just yet.

My email address is If you or anyone wouldn't mind emailing a copy of an estimate that shows them paying a markup, I would appreciate it. That way I can prove to my local adjuster that State Farm will pay it. Thanks.

Re: Sublet markups

PostPosted: Wed May 24, 2017 2:09 pm
by classicdoug
For anyone who needs it, I now have an estimate from State Farm with a 25% markup on a sublet item. My local adjuster refused to pay it, but the supplement desk team said no problem.

The sublet item is a convertible top on a BMW so 25% added up to a good bit of money. The upholstery guy will come to my shop and put the top on and Tommie is right. He's using my shop space, my air & electricity, etc. Why should I supply that for free?

Re: Sublet markups

PostPosted: Fri May 26, 2017 5:35 am
by tommie b
Good hope it works out