Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
What Role Should a Current Backlog of Work Play in Auto Body Shops’ DRP Decisions?
Shop Showcase
A national survey in April found repair everything you have. If that’s auto body shops on average have a a business decision you have been work backlog topping four weeks, toying with, now would be a good with Ed Attanasio and during the Society of Collision time to do that.” Repair Specialists’ (SCRS) Repairer Other association leaders with Roundtable this spring, a panel was longer tenures offered some cauasked whether that “unique scenar- tions to consider. “In order to do that, they have io” in the industry should play into a collision repair business’ decisions to have alternative plans,” Jordan related to participation in direct re- Hendler of the Washington Metwith Ed Attanasio pair programs. ropolitan Auto Body Association Three association leaders and (WMABA) said of shops choosing two shop owners responded. to exit DRPs. “I don’t think you can Jill Tuggle, who has been ex- just sever those relationships. I think ecutive director of the Auto Body you have to have a solid plan for eiAssociation of Texas (ABAT) for ther marketing or getting into OEM five years, thinks it should play into certifications. In our association, with Ed Attanasio the most successful members are a shop’s decision. “If there ever was a time that specialized and OEM-certified in at you could test the waters on operat- least five or six brands, minimum. ing independently of those contracts, You need to know how you are goit would be now,” Tuggle said. “Be- ing to create your own customer cause you’re going to get work. stream and own your portion of the with Ed the Attanasio The work is there. You already can’t market in a smart way.”
DRPs [without a plan] and think you’ll be fine. I think that’s a dangerous trap for shops. We’ve seen that happen.” Aaron Schulenburg of SCRS agreed each business has to evaluate its own situation. “I don’t think any one model is right or wrong,” he said. “There’s a lot of successful businesses up here [on this panel] and in the audience and in our membership base that have found success in every type of model.” He said the current situation does provide collision repairers with an opportunity to “prioritize where their profitability lies,” noting even large multi-shop operations (MSOs) that focus on DRP work are saying they are evaluating which of those programs offer the best fit. Ron Reichen of Precision Body & Paint, which is opening its fifth
Some collision repairers have chosen locations with little street visibility, Hendler said, lowering their overhead because they knew direct repair referrals would bring work to the door.
Social Media for Shops
SEMA Show Goes On
Jordan Hendler said shops can end direct repair agreements, but first need to have a solid plan about how they can address the changes that will entail
“If you just shut those [DRPs] Media and Publicity for Shops off, you now have no customer vis-
ibility,” Hendler said. “There’s a lot of pressure just to get rid of all your
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