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The Teardown
Hidden damage report · prepared for Sanchez Collision Center
Sample — fictional shop
Shop Sanchez Collision
Owner H. Sanchez
Bays 6
Est. annual sales $3,200,000
Report no. TD-0417
Teardown date 07 / 21 / 26
Total hidden damage found
$442,677

That is 13.8% of your annual sales sitting in places your P&L does not show you. None of it requires a single additional repair order.

$191,373 Every year, ongoing — margin and rate leaks
$251,304 One time — cash and tax you can pull forward
7 of 9 Line items where you trail shops your size

Hidden damage — line items

Severity · Heavy / Moderate / Light

Same as a vehicle teardown: the visible damage was never the whole story. Each line below is money already inside your business. The severity code is how much it is costing you, not how hard it is to fix.

Heavy

Your posted labor rate trails the market by $8

You are posted at $54. Nine shops inside your ZIP publish rates between $59 and $66. Every flag hour you turn is billed below what your own market already supports.

market_rate_p50 = $62.00  |  posted = $54.00  |  flag_hrs_est = 12,000/yr
$96,000 per year
Heavy

$123,616 tied up in slow collections

You are collecting in 38 days. Shops your size collect in 24. That 14‑day gap is cash you have already spent on parts and payroll and are waiting on a carrier to give back.

dso = 38.1 days  |  peer_p50 = 24.0 days  |  daily_sales = $8,767
$123,616 one time
Heavy

$75,888 is parked outside right now

31 cars on the lot at roughly $3,400 each in parts and labor you have already paid out. That is separate from what the carriers owe you — it is money sitting in sheet metal that has not delivered yet.

cars_on_lot = 31  |  avg_ro = $3,400  |  peer_p50 = 1.9% of sales
$75,888 one time
Heavy

Parts gross profit is running 6 points light

You are holding 22% on parts. Shops your size hold 28%. The usual causes are uncredited returns, cores that never came back, and price mismatches between the estimate and the invoice.

parts_gp = 22.1%  |  peer_p50 = 28.0%  |  parts_rev_est = $1,280,000
$75,520 per year
Mod

You own the building and have never accelerated the depreciation

County records show 4400 Central in your name since 2019. A collision facility is unusually good at this — booths, compressed air, frame anchoring and electrical all reclassify to shorter lives.

parcel = 4400 CENTRAL AVE  |  acquired = 2019  |  basis = $840,000  |  study_on_file = none
$37,800 one time
Mod

42 calibrations went out the door unbilled

We counted 42 repairs in the last 12 months on vehicles whose OEM procedure calls for a calibration, with no matching line on the invoice. Carriers push back on these constantly — but you cannot be short paid on a line you never billed.

adas_eligible_ros = 42  |  billed = 0  |  avg_charge = $400
$16,800 per year
Mod

Two payroll class codes look wrong

Your detailers and your office staff appear to be rated at the body technician code. Misclassification compounds — and premium overpaid in prior years is generally recoverable, not just fixable going forward.

codes_flagged = 2  |  headcount_affected = 5  |  lookback = 3 yrs
$14,000 recoverable
Light

Card processing is priced about 0.9 points above market

Small on its own. It is on this list because it takes one phone call and it recurs every month you do not make it.

card_volume_est = $340,000/yr  |  est_overage = 0.90%
$3,053 per year
Light

Paint and materials sales tax needs a look

Your state treats materials and painting labor differently than the state your bookkeeping template came from. Shops get this wrong in both directions — overpaying now, or building audit exposure for later.

exposure = under review  |  requires: 3 yrs of returns
TBD under review
Total hidden damage $442,677

How you compare

vs. 214 shops, 4–8 bays

The vertical mark is where the middle of the pack sits. This is the part your accountant cannot tell you, because they only ever see one shop’s books.

Parts gross profit You 22.1% · Peer 28.0%
12th percentile — six points of margin on every part you sell.
Days to collect You 38.1 · Peer 24.0
19th percentile — two weeks slower than the shop across town.
Posted labor rate You $54 · Market $62
Bottom quartile in your own ZIP code.
Cash in the lot, as % of sales You 2.6% · Peer 1.9%
You carry more work in process than most shops your size.
Technician retention You 71% · Peer 58%
Top third. This one is working — do not change it.

What happens next

Teardown → Blueprint → Repair

You already know this sequence — it is how you run a car through your own shop. You tear it down to find the damage, you blueprint the repair, then somebody does the work.

Teardown done

This report. Free, no strings, yours to keep.

  • Nine line items, priced
  • Benchmarked against 214 shops
  • Bill’s written notes within 48 hours

Blueprint $199/mo

The plan, and someone watching the numbers with you.

  • Monthly rescore, with what moved
  • Monday morning text: cash in your lot
  • Live benchmarks against your size class
  • Fix list, in priority order
  • Monthly group call with Bill

Repair by application

Crunchit takes the work off your desk entirely. Four shops per quarter.

  • Books run daily, not monthly
  • We chase the short pays and the credits
  • Tax strategy, not tax filing
  • Built toward whatever your exit looks like