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One shop built a standalone calibration center. Meanwhile, insurers face new state pushback on pricing.
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Sublet costs become revenue. Insurance gets regulated.
Thursday, September 24 · #100
~2 min read
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A Michigan CARSTAR shop stopped losing money on ADAS calibrations and built a seven-figure business instead. At the same time, state regulators are moving to block price optimization tactics that have squeezed repair shops for years.

INDUSTRY

1. CARSTAR builds standalone ADAS center, turns sublet costs into profit

Waldron's CARSTAR in Michigan built its own calibration operation instead of sending work out. The move cut cycle time, improved safety, and created a seven-figure revenue stream. The shop now owns the margin instead of paying someone else to do the work. This is the playbook working shops are following right now.

Mark says: If you're sublet-heavy on ADAS, pull this article and walk through the math with your owner this week before you leave another calibration on the table.

Source: BodyShop Business →

INSURANCE

2. CFA pushes states to ban price optimization in insurance

The Consumer Federation of America has written state insurance commissioners urging them to follow Texas and prohibit price optimization, the practice of charging different rates to different customers for the same coverage. Texas banned it. Other states are watching. This directly hits repair shops because lower insurance competition has reduced demand and pushed carriers to cut reimbursement.

Mark says: Track which states adopt this ban; they'll likely see insurance competition improve, which means better repair reimbursement rates over time.

Source: SCRS →

OEM

3. NHTSA releases first pedestrian safety test results for 2027 models

NHTSA released its inaugural pedestrian protection assessments for model year 2027 vehicles. One hundred and two vehicles met the criteria. This signals a wave of new safety hardware on incoming vehicles, which means more ADAS systems to calibrate and more OEM repair procedures to follow.

Mark says: Inventory which 2027 models hit these specs and pull their ADAS procedures now; your estimators will see these vehicles in the bay in the next six months.

Source: SCRS →

TRAINING

4. John Bean drops customer-facing ADAS calibration video

John Bean (Snap-on) released a short video shops can show customers to explain why ADAS calibration is necessary after a collision. It addresses the most common pushback: why does my car need this after a small dent? The video handles the safety messaging so your service writer doesn't have to.

Mark says: Download this video and play it on the waiting room tablet or text it to customers before they arrive; it kills estimate denial conversations.

Source: CollisionWeek →

INDUSTRY

5. Michigan launches statewide auto body association, joins SCRS

A new Michigan Auto Body Association launched and affiliated with SCRS. Early priorities include anti-steering protections and pushing OEMs to reimburse for repair procedures. This is the state-level advocacy work that protects shop margins when insurers try to dictate where customers go or how much they pay.

Mark says: If you operate in Michigan, join this group now; state associations have real leverage with insurers and OEMs that independent shops don't.

Source: CollisionWeek →

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Published by Absolute ADAS. Mark Fowler, owner. Mobile ADAS calibration in Western Washington. 50,000+ calibrations on the floor.

👀 Tomorrow: NHTSA's 2027 pedestrian test data names which systems passed and which OEMs have calibration procedures shops aren't being reimbursed for yet.
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