ADAS Research Fees: To Bill or Not to Bill

There are multiple steps involved in completing an ADAS calibration when you’re repairing a customer’s vehicle. And before you even actually start on the calibrations themselves, you need to determine what overall repairs are needed, which ADAS systems will need to be calibrated, and what steps are involved. 

Calibrations are obviously billable, but what about the time it takes to determine which systems are impacted and what calibration processes your team needs to complete?

That’s where research fees come into play. In this post, we’ll talk about what research fees are, how much you can bill for, and why shops should charge them. 

What are ADAS research fees? 

ADAS research fees are charges added to a customer’s estimate and invoice that account for the time your technicians spend assessing calibration requirements. This includes:

• Determining which calibrations are needed based on expected repair needs.
• Accessing OEM documentation.
• Reviewing VIN-specific OEM documentation to identify specific calibration procedures. 

Research fees will show up as a unique line item, separate from the costs of the individual calibrations themselves. 

What should shops charge for ADAS research fees? 

Shops can choose their own research fees. However, unlike other calibration or repair costs, our team of experts shared that research fees are relatively standardized regardless of factors like a location’s cost-of-living. 

Joel Adcock, Revv’s Director of Strategic Partnerships, said that most shops across the country typically have pretty standardized research fees based on the classification of vehicles:

• Domestic vehicles may cost around $20. 
• Japanese vehicles like Hyundais and Toyotas are typically around $20, but may go up to $25. 
• Premium, European vehicles like BMWs and Audis can charge a premium of up to $30. 

Keep in mind that unless you only service select types of vehicles, you may have customers that notice a discrepancy if their friend or partner has a different research fee cost than they do. Your team can explain that different classifications of vehicles may have more complex OEM documentation requirements, contributing to the difference in pricing.  

Why you should charge research fees on ADAS calibrations

There are a few clear reasons why you should charge research fees based on ADAS calibration assessments.

First, it’s important to remember that the research process does actually take time, even when you’re using software like Revv that tells you which calibration procedures will be required according to OEM documentation based on the projected repairs. Technicians need to be paid for their time.

This also ensures that you’re maximizing profit. And it’s not about slipping in quick charges to bolster your bottom line, it’s fair compensation for work that’s done well. The initial assessment is an important part of the process from a practical perspective, but it also matters for liability reasons and insurance documentation, too. 

Situations when you may rethink charging research fees 

Most shops do charge research fees on any vehicle that needs ADAS calibrations. There are times, however, when you may choose to waive them.

If you have a self-paying customer who isn’t going through insurance and who is stressed about cost, for example, you may choose to shave off the fee to help make repairs more accessible. This is particularly common if you have a long-time relationship with the customer, and they’re worried about paying for the cost of the repair. 

‍However, remember that you still need to do the research. The research is a critical part of ensuring the vehicle is safe and functional, and avoiding potential liability issues. In these circumstances, you’d still conduct the research but just waive the fee. 

Are research fees separate from subscription fees?

Yes, ADAS calibration research fees are entirely separate from subscription fees.

Research fees are charged by your shop and are compensation for the time spent determining which calibrations will be required and which specific processes will be involved in completing those calibrations. 

Subscription fees are charged by a sublet ADAS company. Some shops will outsource some or all of their ADAS calibrations to a sublet partner, who may have specific equipment or more space to properly complete certain types of calibrations. When that happens, sublets sometimes charge a subscription fee to cover the cost of getting access to the OEM information. 

If you outsource calibrations to another shop, you may or may not see subscription fees on the invoice. Sometimes it’s listed as a flat fee, and other times it may be reflected in a markup price of the calibration itself. Either way, this is a cost that typically gets passed on to the customer. 

What if customers complain about research fees? 

Since research fees are broken out as their own line item and are separate from calibrations, customers may notice it. And unfortunately, some customers may not love it. 

Fortunately, research fees are relatively low. Shops can prevent or address objections by:

• Always presenting research fees upfront. Include research fees in your initial estimates so there are no surprises. 
• Stressing the process involved. Explain how you need to look at VIN-specific calibration processes for each vehicle to understand the exact processes required. This is time-consuming, and it’s essential to get it right. 
• Highlighting the value. Remind users of the importance of ADAS features for the safety of their cars. A sensor that’s off even a few degrees could have a significant impact on the overall ADAS system. 
• Reminding them about insurance. Many insurance companies expect that shops follow OEM documentation if they want reimbursement. Remind customers that researching the correct calibration procedures is part of ensuring they maximize their reimbursement. 

Using Revv to streamline estimates & invoicing 

Shops should almost always charge research fees, because ensuring you understand which calibrations are required for each vehicle’s repair is an important part of the process. And historically, it’s been exceptionally time-consuming, requiring shop owners to comb through page after page of OEM documentation to try to determine what would be needed.

Fortunately, Revv can help streamline the process. You can enter the vehicle’s VIN and the anticipated repairs, and you’ll immediately see a list of required ADAS calibrations according to OEM documentation. These calibrations are added to your client’s estimate, broken down line-by-line, for easy customer and insurance review. 

‍Ready to maximize your profit and streamline safe, complete calibrations? Book your demo with Revv today!