How Sublet Providers Handle Subscription Fees: What Shops Need to Know

When you send ADAS calibrations to a sublet provider, the invoice often includes more than just labor and equipment charges. 

Often, sublet companies add "subscription fees" as a separate line item. These fees ultimately get passed to your customers and their insurance companies, so understanding the charges and how to handle them is crucial for maintaining profitability and transparency with your own customers.

This post breaks down what these subscription fees actually cover, how to price them appropriately, and what you need to communicate to customers and insurers.

Understanding subscription vs. research fees

You may already be familiar with research fees, which your shop likely charges for ADAS calibrations. (If you don’t, we recommend that you do). 

These fees compensate for the time spent identifying which specific calibrations are needed for each vehicle. This includes analyzing damage reports, checking for technical service bulletins, and determining the exact procedures required based on the repairs performed.

Subscription fees, however, are an entirely different fee. They’re charged when you outsource some or all of your ADAS calibrations to a sublet partner. They cover the sublet shop’s access to OEM information databases and manufacturer-specific calibration procedures. 

These cover the ongoing costs that sublets pay monthly or annually to maintain access to current technical information from multiple manufacturers. Think of it like their software licensing costs for accessing Honda, Toyota, GM, and other manufacturer databases.

While these might seem similar, they serve different purposes and should be handled differently in your billing. You’re ultimately in control of the research fees that you charge customers, but the sublet partner determines the cost of the subscription fees they pay to you. 

These are ultimately passed onto the customer (or insurance if they’re reimbursing you), so it’s important to be aware of them. 

The pass-through pricing dilemma

When a sublet charges you a subscription fee, you face three pricing options:

Option 1: Direct pass-through. Simply add the exact fee to your customer's invoice as a separate line item. This maintains transparency but provides no additional revenue.

Option 2: Standard markup. Apply your shop's typical markup (often 25-35%) to these fees, treating them like any other sublet cost. This helps cover your overhead but may raise questions from insurance adjusters or customers.

Option 3: Bundled pricing. Include these fees in your overall calibration charge rather than itemizing them separately. This simplifies billing but reduces transparency for customers and could be flagged during insurance reimbursement processes.

Managing mixed calibration workflows

The subscription fee question becomes more complex when you perform some calibrations in-house while subletting others. Consider this common scenario:

Your shop handles static calibrations internally but sublets dynamic calibrations. You already pay for your own OEM information access for the in-house work. When the sublet charges a subscription fee for their portion, you're essentially paying twice for information access on the same vehicle.

You could track which calibrations you perform internally versus sublet, and document the fees accordingly. Keep in mind that transparency is always useful, as insurance companies may be more likely to approve subscription fees when they can see exactly which services required external provider access.

Creating transparent customer communication

Customers and insurance companies increasingly scrutinize every line item on repair invoices. Properly explaining subscription fees prevents payment delays and disputes.

For customer invoices:

• Label fees clearly with options like  "Partner OEM Information Access Fee" or "Technical Database Subscription." 
• Include brief explanations, like "required manufacturer database access for proper calibration procedures."
• Show the fee as a separate line item rather than hiding it in labor charges. 

For insurance submissions:

• Document why sublet was necessary, including equipment requirements, or certification needs. 
• Explain that subscription fees are industry-standard for accessing current OEM procedures.
• Reference the specific calibrations that required this database access. 

Setting policies for subscription fee handling

Establish clear shop policies before these situations arise:

• Approval thresholds: Determine at what dollar amount subscription fees require management approval or customer authorization.
• Markup standards: Set consistent markup percentages for all sublet fees to avoid confusion and ensure profitability, if you’re using the markup approach.
• Documentation requirements: Create templates for explaining these fees to customers and insurers.
• Sublet agreements: Negotiate with your sublet providers about how they itemize, charge, and justify these fees.
• Insurance relationships: Discuss subscription fee handling with your primary insurance partners before disputes arise.

Best practices for shops using sublets

Based on successful shops' experiences, follow these guidelines:

1. Get itemized invoices from sublets that clearly separate subscription fees from labor and other charges.
2. Maintain your own documentation about why specific sublets were necessary.
3. Apply consistent markups that align with your overall pricing strategy.
4. Educate your team so service advisors can explain these fees confidently.
5. Review regularly to ensure sublet subscription fees remain reasonable and competitive.
6. Consider alternatives if subscription fees become excessive, it might be time to bring more calibrations in-house if that’s an option.

Making informed decisions about sublet partnerships

Subscription fees are standard in the ADAS sublet industry, so if you’re outsourcing calibrations, it’s important to think about how these fees impact you and your customers. 

When these fees are handled properly—with appropriate markups, clear documentation, and transparent communication—they become a normal part of doing business rather than a source of conflict. The key is establishing systems and policies before you need them.

Revv helps shops manage both in-house and sublet calibrations efficiently, providing the documentation and workflow tools needed to justify all fees to insurance companies. Whether you're performing calibrations internally or managing sublet relationships, our platform ensures you capture every billable element while maintaining complete transparency.

Ready to streamline your calibration workflow and optimize your fee structure? Book a demo with Revv today to see how we help shops maximize profitability with ADAS calibrations.