Legal Advice Âť Custom Painting Âť NACE Review
November 2012//Vol. 31 No. 11
www.bodyshopbusiness.com
Body shops tell their stories of helping police bring criminals to justice.
Circle 1 for Reader Service
Inside
November November 2012
Vol. 31 No. 11
y/Shutterstock.com
16
ON THE COVER Cops and Shops Body shops can serve a crucial role in helping the police bring criminals to justice.
Jack Dagley Photograph
FEATURES
34 Thumbs Down to ‘Rule of Thumb’ LEGAL
The “rule of thumb” paint and materials reimbursement method used by insurers could get shops into trouble – since they would be selling goods at below acquisition cost.
48 Learning from the Past SHOP PROFILE
This third-generation shop owner has his own way of doing things...influenced by a grandfather and father who preceded him.
58 Wild to Mild
CUSTOM REFINISHING What is the perfect custom paint job? It depends largely on what kind of vehicle you’re putting that wild or mild job on.
SHOP TALK Editor’s Notes
6 10 Web Presence Management 80 Publisher’s Perspective Consolidation? What consolidation?
Getting Google+ to reward your shop.
BODYSHOP BUSINESS (ISSN 0730-7241) (November 2012, Volume 31, Number 11): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2012 Babcox Media, Inc. All Rights Reserved. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to BODYSHOP BUSINESS, P.O. Box 13260, Akron, OH 44334-3912. Member, BPA Worldwide
Parts, parts...and more parts.
DEPARTMENTS Guess the Car ....................................................................................4 Industry Update ................................................................................8 NASCAR Performance ......................................................................14 Tech Tips ......................................................................................24 Product Showcase............................................................................75
Circle 3 for Reader Service
Guess
She’s my sis!
the Car
SOLVED!
Reader Contest! Win $50! What vehicle MODEL does this picture represent? Fax your guess to (330) 670-0874. Include name, title, shop name, city, state and phone number. Or submit your guess with our online contest form by visiting bodyshopbusiness.com/guessthecar. The winner will be randomly selected from correct entries and awarded $50. Entries must be received by Nov. 30. *Only one winner will be selected. Chances of winning are dependent upon the number of correct entries received. Employees of Babcox, industry manufacturers and BSB advertisers are not eligible to enter.
Jenny’s sis = (Hyundai) Genesis
Eek! I won?
!
WINNER #114 Brian Albrecht, manager, Ken’s Auto Body, Frenchtown, N.J.
#116
4
#115 See the December issue for winner of Guess the Car #115.
November 2012 | BodyShop Business
Eek-won-ox = (Chevrolet) Equinox
Circle 4 for Reader Service
Circle 5 for Reader Service
Editor’s
Notes
Publisher
S. Scott Shriber, ext. 229 (sshriber@babcox.com) Editor
What Consolidation? was at NACE last month and ran into a couple of body shop owners from New York whom I had never met before. They weren’t exactly fountains of words, so I thought I would jump-start the conversation with, “So, what do you think about all this consolidation going on?”
I
“Consolidation? What’s that?” one of them asked. I suddenly felt a little dejected. I come to work every day with the goal of educating the collision repair industry on the latest trends and topics, and with this one question I felt a little like all my effort had been for naught. “But wait!” I said to myself. “Isn’t it naive for you to believe that everyone in the entire collision repair industry knows everything that’s going on?” Of course it is! In years past, when I would attend an educational event in our industry, I would assume the industry was better off because a packed house of 200
people was there with me. And the industry was better off...but still, that 200 represented only a minute portion of the total collision populace – the 1 percent, or 10 percent, or whatever percent you believe stay active and involved in what’s going on. So I responded, “It’s this trend going on of big shop operations getting bigger by buying other shops.” And then I handed them the September issue of BodyShop Business with the cover story titled (what else?), “Consolidation.” “Oh,” the shop owner said. “That’s not going on in our area.” And she was right...at least not on the scale it’s happening in other areas. But her reply reminded me of the fact that all of us need to keep our eye on what’s coming, not just what’s already here. If you see the bus bearing down on you at the last minute, it’s going to be a little difficult to get out of the way. Single-store independents should be figuring out right now how they’ll compete with an ABRA, Gerber or Service King, if and when they come to town. We showed how some shops are doing just that in our October issue. Keep your eye out for more of that content in future issues!
Jason Stahl, Editor Email comments to jstahl@babcox.com
Jason Stahl, ext. 226 jstahl@babcox.com Associate Editor
Gina Kuzmick, ext. 244 gkuzmick@babcox.com Contributing Editors
Charlie Barone, Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, Tom Ferry, John D. Lyman Sr., Hank Nunn, Carl Wilson Graphic Designer
Lisa DiPaolo, ext. 281 ldipaolo@babcox.com Advertising Services
Kelly McAleese, ext. 284 kmcaleese@babcox.com Director of Circulation
Pat Robinson, ext. 276 probinson@babcox.com Director of eMedia & Audience Development
Brad Mitchell, ext. 277 bmitchell@babcox.com Subscription Services
Ellen Mays, ext. 275 emays@babcox.com Tel: (330) 670-1234 Fax: (330) 670-0874 Web site: bodyshopbusiness.com Corporate
Bill Babcox, President Gregory Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Scheetz, Controller A limited number of complimentary subscriptions are available to those who qualify. Call (330) 670-1234, ext. 288, or fax us at (330) 6705335. Paid subscriptions are available for nonqualified subscribers at: U.S.: $69 for one year. Canada/Mexico: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via air mail: $129 for one year. Payable in advance in U.S. funds. Mail payment to BodyShop Business, P.O. Box 75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.
Circle 7 for Reader Service
Industry
Update
A Look Back at
NACE 2012 he 2012 International Autobody Congress & Expo (NACE) is officially in the books, and collision repairers and industry representatives are counting their Bourbon Street memories. There was the National Auto Body Council’s Recycled Rides giveaway, where the industry showed its generosity in restoring and giving away numerous vehicles to needy families. There were the 80-plus educational sessions that repairers used
T
to satisfy their hunger for up-to-date training on today’s advanced vehicles. There was the trade show chock full of games, giveaways and new, innovative, never-before-seen product developments designed around making shops faster in delivering a higher quality work product. What hand will be dealt at the 2013 NACE in Las Vegas Oct. 1719? The industry is betting on more of the same.
NHTSA Declares Dangers of Counterfeit Airbags he National Highway Traffic Safety Administration (NHTSA) recently held a press conference to issue a warning against airbags that were replaced in the past three
T
years, stating they may have counterfeit systems that won’t function properly. NHTSA has stated the airbags look identical to certified, original equipment parts, but testing has shown mal-
functioning ranging from non-deployment of the airbag to the expulsion of metal shrapnel during deployment. NHTSA has identified vehicle makes and models it believes may contain
these airbags, and believes they affect less than 0.1 percent of the U.S. vehicle fleet. NHTSA noted that vehicles that have had an airbag replaced within the past three years by a repair shop that is not part of a new car dealership may be at risk. Continued on pg. 64 Circle 120 for Reader Service »
8
November 2012 | BodyShop Business
»| Industry Update |« ASA Repairers Meet with State Farm to Voice Concerns About Parts Pilot Members of the Automotive Service Association’s (ASA) Collision Division Operations Committee, board of directors and staff met with staff members of State Farm Sept. 27 in Bloomington, Ill. The meeting continued discussions started previously by the participants concerning State Farm’s electronic parts ordering pilot currently being tested in Grand Rapids, Mich.; Tucson,
Ariz.; Birmingham, Ala.; and Charlotte, N.C. It is scheduled for further testing in the Chicago metropolitan area by the end of 2012. At the meeting, ASA participants stressed repairers’ core concerns, which center around parts profit, administration, agreement expectations and data collection. State Farm particiContinued on pg. 65
BodyShop Business Names
2012 Collision Repair Shop Executive of the Year BodyShop Business presented Jeff Middleton with its Collision Repair Shop Executive of the Year Award at the 2012 International Autobody Congress & Exposition (NACE) in New Orleans. Middleton is owner of Exhibition Automotive CARSTAR and Ballard BodyShop Business Publisher Scott Shriber (left) hands Jeff Middleton the Collision CARSTAR Collision Repair Shop Executive of the in Washington. The award has Year plaque at the 2012 NACE. been given since 1984 to a true collision repair visionary who has experienced great success by being forward-thinking, overcoming challenges and persevering. Middleton has been in the collision repair industry for more than 30 years, starting at a dealership in 1978 and eventually opening his own shop in 2002. Aside from achieving tremendous business success, Middleton has served on technical school advisory boards since 1985 and has participated in many CARSTAR-led charity projects.
Longtime Babcox Media Executive
Becky Babcox Passes Away Babcox Media is saddened to announce the passing of Mary Rebecca “Becky” Babcox, a longtime automotive aftermarket industry veteran. Becky died peacefully on Oct. 15, 2012, in Akron, Ohio, after a long battle with Multiple System Atrophy (MSA). She was 60 years old. For many years, Becky was coowner of Babcox Media, along with her brother, Bill Babcox. Together, they were the third generation of the Babcox family to run the company founded by their grandfather, Edward S. Babcox, in 1920. Becky retired from the company in 2006, after nearly 30 years in the business. She was named “Woman of the Year” by the Car Care Council Women’s Board that same year. In addition to serving as corporate secretary of Babcox, Becky was publisher of Automotive Rebuilder magazine, known today as Engine Builder magazine. She was an active participant in the rebuilding industry, serving as a board member of the Production Engine Remanufacturers Association (PERA) and numerous other aftermarket associations, including the Engine Builders Association (AERA), the Automotive Parts Remanufacturers Association (APRA) and the Car Care Council Women’s Board. Becky was well-known and respected for her contributions to the industry and made many friends among aftermarket professionals during her years of service. With her warm and friendly nature, Becky couldn’t walk down the aisles at trade shows without receiving abundant hellos from admiring industry peers. All those who knew her would say her generosity was unmatched. She lived life with a positive attitude and even in the end stages of life never relinquished her characteristic grace and humility. In addition to her significant career accomplishments, Becky served her beloved Akron, Ohio, community by giving time and energy to Goodwill Industries, Planned Parenthood, Junior League of Akron, The Akron Garden Club, Old Trail School and many others. Becky was a graduate of Emory University and received her MBA from The Ohio State University. She is survived by her son, Rob. A memorial service was held at First Congregational Church in Akron, Ohio, on Friday, Oct. 19, 2012. In lieu of flowers, memorial contributions may be made to Goodwill Industries of Akron, Ohio, Inc., 570 E. Waterloo Rd., Akron, Ohio 44319, or to the charity of your choice.
« Circle 121 for Reader Service
www.bodyshopbusiness.com 9
Web Presence
Management
By Mark Claypool
Google+ — The Power
of 1 Locally
ast month, I covered Google+ and whether it was a plus for business or not. The answer was yes, it is. I’m more convinced than ever that Google+ will have an impact on your position in a Google search when the public searches for the services your business provides.
L
Google Local » For years, Google has had something called Google Local, but Google is starting to make a transition from the old Google Local to Google+. Google probably has a Google Local page of your business. Your next step should be to create a Google+ page of your own and get your business verified by Google. Then, Google will merge your old Google Local page with your new Google+ page, giving you full control of your content. All Line CARSTAR in Bolingbrook, Ill., recently built a new website. It was well optimized and is now ranking No. 1 in their hometown. They’ve been participating well on Facebook and Twitter. Take a look at the graphic of a Google search. We used the No. 1 term the public uses, “auto body,” and “Bolingbrook IL.” Notice there are two sponsored pay-per-click listings at the top, then the Google+ Local listings start. These are showing up with map pointers labeled A to G. Notice who is now top dog: letter A…All Line CARSTAR. Notice the link to their website and a link to their Google+ Local page. Google has clearly rewarded All Line for its well optimized website. There is a link to the Google-created Google+ page. We’ve claimed a separate Google+ page for them as well. Google will be sending out a validation postcard verifying that this shop actually ex10
November 2012 | BodyShop Business
Google has rewarded All Line CARSTAR for their welloptimized website with links to their site and Google+ Local page.
ists and the shop owners want to control their own Google+ page. When this validation takes place, Google will merge the old Google+ Local page with the fully validated Google+ page. Here’s what that looks like:
All Line CARSTAR’s Google+ page.
By the time this article hits the streets, we’re hoping that All Line will have received the postcard from Google and its business listing will have been validated. If so, when they show up on a search, hopefully in that
Circle 11 for Reader Service
»| Web Presence |« coveted “position A” at the top, their actual Google+ page will be what people see. All Line can defend this position by actively posting and seeking followers who “+1” their business (same as “Liking” on Facebook), write testimonials, share posts, etc. I believe that active, good quality posting and interacting with followers is what will determine who earns that top “letter A” position, and then B, C, D, etc. Google is making Google+ a priority one way or the other. You can either participate and have a chance to win, or fall behind the crowd. But wait, there’s more! Watch what happens when your cursor hovers to the right of the listing: a double arrow shows up and a snapshot of All Line’s Google+ page appears in the panel to the right. When the validated page comes online, we’re hoping to see even more information showing here – photos, reviews and recent posts. That will be even more powerful.
5. Choose a photo that represents you; fill in the rest of the details in the fields provided. 6. Once this has been set up, it’s time to start creating your business page. Click on the following link: https://plus.google.com/pages/ create. Then, click on “Local Business or Place.” 7. Next, enter your business phone number. Google will search for your business and ask you to confirm that this is you. It’s really self-explanatory from there. It only takes a few minutes and is well worth the effort. Next, have your webmaster put the Google+ badge on your website and start inviting people to “+1” you. Start experiencing the power of 1! It won’t happen overnight, but you’ll be on the cutting edge. And I firmly believe that participating in Google+ will boost your ranking potential and your local map positioning over time. BSB
Confusing But Necessary »
BSB Contributing Editor Mark Claypool has 30 years of experience in the fields of workforce development, business/education partnerships, apprenticeships and Web presence management. He is the CEO of Optima Automotive (www.optimaautomotive.com), which provides website design, development, search engine optimization (SEO) services and Social Media Management services. He’s also the Director of Business Development for Metro Paint Supplies in Chicago. Claypool’s work history includes VP of VeriFacts Automotive, founder of Mentors At Work (now a division of VeriFacts), executive director of the I-CAR Education Foundation and the National Auto Body Council (NABC), co-founder of the Collision Industry Foundation and national director of development for SkillsUSA. Claypool served, on a volunteer basis, as the SkillsUSA World Team Leader for the WorldSkills Championships.
There’s no doubt this is all confusing. Google’s transition hasn’t been very smooth. But follow my advice, and these steps, and it will be a snap. You need to claim your listing and control the way your information is being portrayed. To do so, you must first set up a personal profile on Google+. Follow these steps: 1. Go to www.google.com. See the +You button? Click on that. If you don’t have a Gmail account, you’ll create one by clicking on “Sign Up.” Otherwise, sign in. 2. Fill in your user information, agree to their terms of use and you’re on your way. 3. Add a profile photo that represents you (not your business just yet). 4. Continue on to Google+ by clicking on the button. You’re still creating your individual Google+ page at this point; choose things of interest to you, then click on “Continue.” Circle 12 for Reader Service
12
November 2012 | BodyShop Business
Circle 13 for Reader Service
Track Talk NASCAR Tech Graduate Finds Home with Roush Yates Racing Engines When Vic Russell first toured the Universal Technical Institute-Avondale campus in 2002, he had no idea that decision would change his life forever. It was during this initial campus visit that Russell mentioned his love for racing, and it was that conversation that ultimately led him to NASCAR Technical Institute (NASCAR Tech) in Mooresville, N.C. “I wasn’t always interested in a career in racing, but when I first saw the campus in Mooresville, I was hooked,” said Russell. “I was really inter-
2012
NASCAR Series Awards Banquet Schedules
ested in a career in forestry, so at the time I was more of just a racing fan.” After some thought and discussion with his family, Russell made the move from Stanfield, Ariz., to Mooresville to pursue an education at NASCAR Tech. It was his time on campus that helped bring out his passion for the sport, but even after graduating in August 2003 Russell still wasn’t convinced that a job on a race team was possible. “After graduation, I thought a lot about applying for jobs with notable manufacturers such as BMW and Volkswagen,” said Russell. “The racing industry is so niche with so little spots available; I thought I would have a better opportuni-
ty finding employment with a mainstream brand.” Luckily for Russell, he got the help he needed to break into the industry he had always loved. “I was talking to a friend one night and he mentioned he knew somebody with Roush Yates Racing Engines who said there was a spot available and thought I should apply,” recalls Russell. After a friend made the initial introductions, Russell was in the shop interviewing, and a short time later he was a fulltime employee with a major team. Starting in a teardown position, Russell had to work his way up the ranks. “When I first started, I was responsible for taking engines apart and inspecting them when the team would
NASCAR Sprint Cup Series Wynn Las Vegas Friday, Nov. 30
NASCAR Nationwide Series Loews Miami Beach Monday, Nov. 19
NASCAR Camping World Truck Series
Working on engines that could potentially win the Daytona 500 is what motivates Vic Russell. Photo courtesy of Scott Hunter, NASCAR Productions
Loews Miami Beach Monday, Nov. 19
Follow NASCAR Performance on Twitter and Facebook www.twitter.com/NASCARauto ■ www.facebook.com/NASCARPerformance
return from a race,” said Russell. “I was willing to do whatever it took to be a part of the team so I was excited for the opportunity.” Now almost 10 years and a few different job descriptions later, Russell is on the subassembly crew where he is tasked with maintaining oil pumps, oil lines, distributors, bell housing, plug wires and clutch assembly. Day in and day out, Russell helps put the horsepower under the Ford powerplants in NASCAR’s top three series. He, alongside coworkers, has helped Roush Yates Racing Engines earn top honors like the 2011 MAHLE Clevite Engine Builder of the Year Award in both the NASCAR Sprint Cup and NASCAR Nationwide Series. Regardless of his career success, Russell always remembers where he got his start. “NASCAR Tech did a lot for me, and it was a positive experience that helped me get where I am today,” said Russell. “I met a lot of great people and will always remember the camaraderie among fellow students and instructors. Those are my greatest memories of all.” Russell remains motivated about what the future holds with Roush Yates Racing Engines. “Each day I think about the idea that the engine I am working on is the one that could possibly win the Daytona 500, and that’s what continues to motivate me.”
Circle 15 for Reader Service
COVER STORY
ood citizens support the local police whenever they can. Body shop owners are included in the community of those who are just as interested in getting bad guys off the streets. Sometimes the police come to the body shop looking for help. Other times, a car comes into the shop and the driver’s story – typically one involving
G Body shops can serve a crucial role in helping the police bring criminals to justice. By Curt Harler 16
November 2012 | BodyShop Business
COVER STORY » Cops & Shops an out-of-pocket repair – just doesn’t feel right.
Required by Law » Not only is it a good idea to work with law enforcement, but in many jurisdictions, it’s required by law. It didn’t take legal action to get Alan Irlbeck to put aside the daily schedule for a bit to help local police. “It’s not much of a story,” says a modest Irlbeck, owner of Irlbeck Collision Center in Manning, Iowa. In fact, he found it amusing at first. “Actually, it was fun working with the police.” The local police had found several scattered auto parts at the scene of a hit-and-run accident. “They came in with a bunch of broken parts in their hands from the hitand-run,” Irlbeck says. “They asked us to take a look and to identify the parts to a specific make of vehicle.” Almost right away, Irlbeck recognized the ear
tabs off a Trailblazer. There were a few paint scrapes, too. A second recent case involved kids “messing around, four-wheeling,” he recalls. In the process, they broke off a fog light, which Irlbeck identified as a part from a 1999 Silverado.
A Heinous Crime » It’s not always fun or easy. Sam Metz was just as horrified and sad as the rest of the Reno, Nev., community when he heard about the abduction, rape and murder of a young Santa Barbara City College student in 2008. As BodyShop Business reported two years ago, Metz
was determined to help find the killer and the DMV was able to provide a and knew he had the skills to do so list of vehicle registrations. thanks to his 45-plus years in the colA suspect, James Biela, was arrested lision repair industry. a few months later and eventually In the early morning hours of Sun- tied to other rapes in the area. He was day, Jan. 20, 2008, Brianna Denison eventually convicted of five charges was abducted from the couch of a of kidnapping, rape and murder and friend’s house she was sentenced to death by visiting in Reno. At lethal injection. For his less than 100 pounds, proactive stance she was no match for against crime, Metz the 6-foot-tall, 200was one of five people pound kidnapper who was honored at who would eventually the 15th annual Narape and murder her. tional Auto Body Metz, now retired, Council (NABC) was manager of the Pride Awards at the Bill Pearce Collision Collision Industry Center in Reno and is Achievement Luncha founding president eon in 2010. of the Nevada Collision Industry AssociState Programs » ation State Board. He The Alliance of reached out to Detec- Brianna Denison, victim of serial Automotive Service tive Dave Jenkins of rapist/murderer James Biela. Providers-New Jersey the Reno Police De(AASP-NJ) started a partment and offered program 15 years ago his help. He says Jenkto aid the police in their ins was initially skepinvestigations. It began tical that he could as an effort to help imnarrow the search for prove the industry’s the vehicle. image. “I explained to him In the very first case, how parts personnel they identified a vehidetermine and idencle and it led to an tify replacement comapprehension. ponents by identifying “We gave the police the year, make and the vehicle, the func- James Biela was convicted of five model of the car. The tion of the part, loca- charges of kidnapping, rape and officer was tickled to tion, size, etc. Given murder. death,” says AASP-NJ the correct informaExecutive Director tion, a replacement part can be supplied,” says Metz. Charles Bryant. “We’ve been so suc“I then explained that it might be pos- cessful with our program that it has sible to reverse that process to reason- become a full-time job.” As word spread through the law ably determine a manufacturer and enforcement community, it got almost date range.” Using Mitchell and CCC Pathway too hectic to handle the requests for illustrations, Metz determined that help. Sometimes, AASP-NJ got a halfthe vehicle was a Toyota Tacoma. He dozen calls a week. Today, they shy confirmed his findings by viewing the away from cases that are only property illustrations and specifications on Cars- damage. The program now limits indirect.com. Metz and Jenkins were vestigations to severe injury or fatal then able to build a partial VIN number, accidents. They ended up developing www.bodyshopbusiness.com 17
COVER STORY » Cops & Shops a template with the traffic officers associations for a more efficient reporting process. Over the years, they’ve received many honors for the program. Most other state groups don’t have a formal policy on assisting the police. Neither does the Society of Collision Repair Specialists (SCRS), according to its executive director, Aaron Schulenburg. David McClune, executive director of the California Autobody Association in Sacramento, says they get approached only occasionally for help. One high-profile case involved a call from the FBI, which was working a bank robbery. The getaway vehicle was damaged and they wanted a description. In another case, the California Highway Patrol (CHiP) approached a Southern California Ford dealership with pieces of a headlight and grill. “By the angle, I could tell right away that it was an F-150,” says the service
18
“We’ve been so successful with our [police assistance] program that it has
become a full-time job.” — Charles Bryant, executive director, AASP-NJ manager. “I knew within a couple of years the age, and I knew the color.” He checked with the shop guys, who found an engineering part number and confirmed his diagnosis.
November 2012 | BodyShop Business
Circle 18 for Reader Service
CHiP had a grocery store video of the fatal hit-and-run that they thought showed a white car. The dealership was able to ascertain that it was actually silver. This led to an identification of the vehicle right down to its VIN. One or two weeks later, police spotted the vehicle at a bar in Alpine, Calif. They made an arrest, and the culprit is now serving time. Still, the shop wants no publicity about the case.
Justice Is Served » Sometimes, people at a shop just feel bad even though justice is served. Olmsted Township, Ohio, police knew they were looking for the driver of a dark-colored sport utility vehicle who they said struck and killed a 13-year-old boy. A day or so later, a woman brought a maroon Sable into the Ganley Auto Body Shop in nearby Middleburg Heights. This was not to be a “whodone-it.” Dina Hanrahan, who works
Circle 19 for Reader Service
COVER STORY » Cops & Shops the front desk at Ganley, says there was something strange about the woman’s demeanor. “I tried to get incident and insurance information from her. She was very short with me. She wanted to get out of here,” Hanrahan recalls. “She didn’t want her insurance involved. She wasn’t clear on how her car was damaged.” Hanrahan had read about a hit-andrun in a nearby community online, and she got to thinking. In the meantime, Rick English, manager of the shop, was writing an estimate. “I saw the damage on the right side of the car,” Hanrahan says. “I told the boss right away that it looked like it hit a person.” Police confirmed it was the car they were looking for. “When they came and started matching up pieces, it was a sickening feeling,” she said.
20
Hanrahan downplays her role. “It was just a coincidence,” she says. “It just caught my eye. And the way she acted made us suspicious.”
Assessing Damage » When a pedestrian is hit, the accident almost always takes off the side-view mirror. These glass pieces have a specific template and shape. The frame backing plate is usually plastic, and often will have a GM or Chrysler manufacturer number on it. However, even without the number, the shape and texture of the glass is specific to certain series of cars. A technician who regularly handles the mirrors can often tell at a glance where a broken part came from. Glass shops have a template for the shape of the mirror glass. An investigator can take a broken mirror, put it on a clear overlay and go page-bypage until it’s possible to map the specific contour of the part.
November 2012 | BodyShop Business
Circle 20 for Reader Service
In a recent case, a shop was able to tie a 2005 Dodge Caravan to a broken mirror, and the state police were able to make an arrest. Some motorists try to fool the police and technicians. Ed Kizenberger, executive director of the Long Island Auto Body Repairman’s Association (LIABRA), recalls a shop that had a customer who claimed they hit a deer. “The car did not present itself that way,” Kizenberger says. For one thing, the telltale deer hair was missing. “The shop realized they were not given the whole story,” he continues. The police were notified, and they responded to the shop. Shortly thereafter, the driver was apprehended and pled to a hit-and-run charge.
Making Mistakes » The police do make mistakes. Once, police approached Bryant and asked him to help put out an APB for a specific
Circle 21 for Reader Service
COVER STORY » Cops & Shops year’s Buick Park Avenue. Bryant’s brother, Jim, looked at the parts the police had and declared, “That’s not a Buick. It’s an Olds.” Jim Bryant knew for sure – he owned the same make and model Oldsmobile. He took the policeman out to his car and matched the header panel and grill pieces. The police checked the DMV records for an Oldsmobile…and discovered the vehicle that was involved in the hit-and-run on the third car they came across. Kizenberger notes that some drivers have a guilty conscience about their accident. “With all the press coverage we get, they know our body shops cooperate with the police and they figure they don’t have a chance,” he says. “They turn themselves in.” In one sad case, the police were able to identify a vehicle by glass parts and went to the woman’s house. She answered the door, saw the cop, and fell, sobbing, into his arms. She was a schoolteacher who never had been in trouble before. But she panicked, leaving a person dead. She already had the windshield on her car replaced, but the body shop had one of the wipers that had broken off the car during the accident. It matched both brand and wear perfectly to the remaining wiper. AASP-NJ got a Civil Servant Award for that catch. But not all cases are sad.
Fun Times » Manning, Iowa, is a small town. Alan Irlbeck – and the police – know just about everyone. As the town’s tow truck driver and sole proprietor of one of only two body shops in the area, the police know him well. In the case of the hit-andrun, he was pretty sure he knew who the Trailblazer’s owner was. “I called the owner’s uncle. He called her and told her what was up,” Irlbeck recalls. The owner got to the police before they got to her. The Silverado case was even simpler. “They just went up to the high school,” Irlbeck chuckles. The police trolled the school parking lot until they found a vehicle with a missing light. Circle 22 for Reader Service
22
November 2012 | BodyShop Business
Even easier might have been a case in New Jersey where someone sideswiped a newly finished car parked in front of a body shop. The offending vehicle’s mirror and some paint scrapes were left behind. A woman and her son came in a couple of days later asking for a repair estimate on their car – which matched the mirror perfectly. The shop owner looked at the damage and called police. Why would anyone bring a damaged car back to the shop where the accident occurred? The boy’s mother had chosen the shop as one of several to approach for estimates. The boy told the police he was more afraid of his mother than the cops.
Not Always Easy » It’s not always easy to help solve a case. “Sometimes you can’t identify the car or can’t find the car,” Bryant says. When LIABRA sends out an email blast of a vehicle description to its list of shops, the descriptions range from detailed to sketchy, Kizenberger says. In addition to body shops, they include dealers and suppliers in their coverage. One never knows if a culprit will try to fix damage at home. Several associations have been working with police for decades. “We have networked with all the police departments on Long Island,” Kizenberger says. “Unfortunately, we still get quite a few calls.” Like other associations, they typically limit bulletins to serious injury or fatal accidents. Not all cases give instant gratification. The Ohio hit-and-run case still hasn’t been settled more than a year later. In fact, it took the police almost three months to arrest the woman – despite the overwhelming shop evidence. Still, shop owners across the country point proudly to what they’ve accomplished and how their skills play a key role in nabbing criminals. BSB Harler is a Cleveland-based freelancer specializing in the auto, technology and environmental areas. He can be reached at curt@curtharler.com.
Circle 23 for Reader Service
Tech
Tips
By Dan Espersen and Jeff Webster
Safety Systems Are Priority One erhaps no aspects of a collision repair are of greater concern to you and your customers than the systems designed to protect drivers and passengers. Insurers, vehicle owners and repairers have a vested interest in a safe repair. The only surefire way to ensure a proper repair of seat belt and airbag systems is to comply with OEM procedures. After all, who is better qualified to supply the information you need than the vehicle manufacturer? Here are the OE removal and replacement procedures for the service, repair, removal and replacement of the inflatable restraint side impact sensor on a 2011 Cadillac Escalade.
P
Service Information » Always refer to ALLDATA Collision for safety procedures, identification of material types, recommended refinish materials, removal and installation procedures. Always refer to the manufacturer for questions relating to applicable or nonapplicable warranty repair information.
Warning: Do not strike or jolt the inflatable restraint side impact sensor (SIS). Before applying power to the SIS, make sure that it’s securely fastened. Failure to observe the correct installation procedures could cause SIR deployment, personal injury or unnecessary SIR system repairs. 1. Disable the inflatable supplemental restraint (SIR) system. Refer to SIR Disabling and Enabling. 2. Remove the front side door trim panel. Refer to Front Side Door Trim Panel Replacement. 3. Remove the front side door water deflector. Refer to Front Side Door Water Deflector Replacement.
Parts Information » (1) Inflatable restraint side impact sensor module bolt (Quantity: 2) (Figure 1) Figure 1
Model » 2011 Cadillac Truck Escalade AWD V8-6.2L Repair Procedure » Warning: When performing service on or near the SIR components or the SIR wiring, the SIR system must be disabled. Refer to SIR Disabling and Enabling. Failure to observe the correct procedure could cause deployment of the SIR components, personal injury or unnecessary SIR system repairs. 24
Caution: Refer to Fastener Caution. Procedure: Loosen bolts and slide sensor out of key hole slots. Tip: 䡲 When removing the bolts from the inboard side, the bolts are removed as having right-hand threads. 䡲 When removing the bolts from the outboard side, the bolts are removed as having left-hand threads.
November 2012 | BodyShop Business
Figure 2: Component connector end views.
Inflatable Restraint Side Impact Sensor (SIS) — right front. PIN
WIRE
CIRCUIT
FUNCTION
A
0.5 WH/BK
6629
Low Reference
B
0.5 D-GN
2134
Side Impact Sensing Module – Right Signal
Repairs and Inspections » Required after a collision accident with side seat airbag deployment – component replacement and inspections After a collision involving driver/passenger side seat airbag deployment, replace the following components: 䡲 Left/right side impact sensors on the side of the impact. (Figure 2) 䡲 Left/right roof rail airbag on the side of the impact. 䡲 Inflatable restraint sensing and diagnostic module (SDM), if SDM has DTC B0052 56. 䡲 Inflatable restraint seat belt anchor and/or retractor pretensioner. 䡲 Driver or passenger seat back cushion cover replacement. Warning: Do not repair or replace the seat stitching or seams in the seat back trim cover with an internal mounted seat side airbag module. Replace the complete seat back trim cover from the OEM. Non-OEM seat stitching may cause improper airbag deployment, which could result in personal injury. Perform additional inspections on the following components: 䡲 Mounting points or mounting
Circle 25 for Reader Service
»| Tech Tips |«
Circle 26 for Reader Service
hardware for the side impact sensors, and driver/passenger side seat airbags on the side of impact – Inspect for any damage, and repair or replace each component as needed. 䡲 Mounting points, mounting hardware, headliner and trim pieces for the left/right roof rail airbag on the side of impact – inspect for any damage, and repair or replace each component as needed. 䡲 Mounting points or mounting hardware for the SDM and seat belt anchor and/or retractor pretensioners – inspect for any damage, and repair or replace each component as needed. 䡲 Seat cushion frame 䡲 Seat recliner and cover, if equipped 䡲 Seat adjuster 䡲 Seat back frame 䡲 Door trim assembly 䡲 Impacted seat cushion side covers and switches NOTE: These repair/service procedures are excerpted from information published by the vehicle manufacturer, and are intended for the purpose of promoting OEM collision repair information to trained, professional technicians with the knowledge, tools and equipment to do the job properly and safely. Before attempting the repairs described, refer to the complete article in ALLDATA Collision S3500. BSB Dan Espersen is ALLDATA’s senior collision program manager, holds an AA degree in automotive technology, and has 46 years of experience in the automotive industry, 19 in collision. ©2012 ALLDATA LLC. All rights reserved. All technical information, images and specifications are from ALLDATA Collision S3500. ALLDATA is a registered trademark and ALLDATA Collision S3500 is a mark of ALLDATA LLC. Toyota and Sienna are registered trademarks of Toyota Motor Corporation and/or Toyota Motor Sales, U.S.A. All other marks are the property of their respective holders.
Circle 83 for Reader Service
Circle 27 for Reader Service
Detours
By Gina Kuzmick
Bringing a Lion to Life o some Americans, football is practically a religion. For Geoff McCollom, his mecca is Penn State’s Beaver Stadium, where he’s watched every home game for the past 21 years. After tailgating underneath a tarp strung between two minivans for some time, he decided that he was long overdue for an upgrade. That’s when he found the trailer.
T
Nothing Special » When he bought it four years ago, it wasn’t anything special – just a six-foot-by-10-foot white cargo trailer. But McCollom, owner of Dutch Valley Auto Body in 28
Lancaster, Pa., saw its potential to become a work of art. “It was just a big canvas,” he said. He recruited one of his body techs, Matt Remick, to give the trailer a makeover two summers ago – a task that Remick didn’t take lightly. He spent the entire summer devising designs and then airbrushing them onto the trailer, and after 400 hours of work and a few all-nighters, the tailgater was finally ready to make its debut the day before the first game of the season. And McCollom couldn’t have been more proud. “Just seeing the reaction of all my
November 2012 | BodyShop Business
peers and the people who would tailgate there, it was just amazing,” he recalled.
The Lion Roars » One side of the trailer features an enormous Penn State Nittany Lion crawling down a series of boulders. Nestled in the background among mountains is Beaver Stadium, which was painted to replicate the first “whiteout” game against rival Notre Dame. “You can superimpose the trailer design [with the mountains] and it matches up,” said McCollom. “[Matt] did it in such detail that each one of
Circle 29 for Reader Service
»| Detours |«
those boulders took about eight hours to do.” The other side showcases another Lion, but this one’s a bit more menacing. He’s airbrushed so that it appears he’s clawed his way out of the trailer, and his left paw is clutching the Notre Dame Leprechaun.
“There’s just something about when Penn State and Notre Dame play that’s special,” said McCollom. “I remember a lot of great games in the ’90s between those two schools, so that’s why we did the whole Notre Dame theme.” The amount of detail that Remick put into the design is astounding – and
Circle 30 for Reader Service
A huge tarp connected between the trailer and the car towing it creates a raintight and spacious enclosure.
sometimes hard to spot. For example, he painted “PSU” inside the Lion’s eyes, and the stadium’s scoreboard displays the final score of the
Circle 31 for Reader Service
»| Detours |« Penn State-Notre Dame whiteout game. McCollom looked at the mural for months and didn’t notice the little details until Remick pointed them out.
All Electric » The artwork isn’t the only remarkable feature. When it’s time to set up, McCollom connects a huge tarp between the trailer and the car towing it, creating an enclosure that’s raintight and spacious. Heaters provide warmth during the chillier games, and there’s a 40-inch high-definition TV with satellite and a gas grill. The two 8D truck batteries that are built into the trailer ’s floor provide enough power to run a 40-hour tailgate. “There is all electric power with battery, so there’s no fumes and no fuss,” said McCollom. Despite some inclement weather,
32
the tailgater’s durability stands against even the toughest conditions. “We’ve [tailgated] through six inches of snow to 30-mile-per-hour wind,” said McCollom. “And that’s part of the fun, just the challenge of the weather up there.” The tailgater brings a sense of unity to Beaver Stadium. One of McCollom’s traditions is to invite the competition inside for some warmth and game day spirit. He recalls a game against Oregon State when a limo filled with 20 people pulled up to the tailgater. “They liked what they saw and jumped out and became our best friends,” he said. “That’s what it’s all about. You meet strangers and sometimes you make friends for life out of them.”
Billboard » During the off-season, the tailgater mainly serves as an artsy
November 2012 | BodyShop Business
Circle 32 for Reader Service
billboard as it rests on display at Dutch Valley. But despite weighing 3,000 lbs., McCollom tries to take it out as much as possible. “We do a big pig roast for employees and vendors every year, which gets about 300 people,” he said. He also totes it to the annual Pike County Penn State Club golf outing, where Nittany Lion fans pose for photos beside it. Penn State fans can count on seeing the tailgating sanctuary for years to come. It’s rarely had any maintenance issues, and despite its hefty size and large amount of features, McCollom says it’s easy to set up and tear down. “Like anything else in life, you make improvements incrementally. It’s like a business. You get better at it, and now we could do this in our sleep.” BSB
Circle 33 for Reader Service
LEGAL
Thumbs Down to ‘Rule of Thumb’ Shops may find themselves the subject of criminal or civil investigation into improper selling activities if they allow insurers to use the “rule of thumb” method to reimburse for paint and materials. By E. L. Eversman, J.D. aint and material payments have typically been tied to the number of paint-related labor units allotted for repair of a vehicle at half the body labor rate. This method has come under criticism of late – with good reason. No one has ever demonstrated what relationship the number of work units has to do with the amount of paint and materials necessary to complete a repair. Likewise, no one has ever demonstrated how a value reflecting half the body rate multiplied by the number of refinish units is an appropriate measure of the goods incorporated into the customer’s vehicle or consumed during the repair. This method is simply a one-size-fits-all multiplication task that fails to account for any distinctions in the unique
P
34
November 2012 | BodyShop Business
nature of each repair or other variables like differences in paint product price. Instead, this payment method is based solely on a “rule of thumb.”
Rule of Thumb » Check out some definitions of rules of thumb I found on the Internet: “A rule of thumb is a homemade recipe for making a guess.” “A hundred years ago, people used rules of thumb to make up for a lack of facts.” “Rules of thumb are used as a handy guess mechanism when there is no way to determine something specifically, or when precision isn’t important.” “A means of estimation made according to a roughand-ready practical rule, not based on science or exact measurement.”
Circle 35 for Reader Service
LEGAL » Rule of Thumb Rules of thumb, then, are an unscientific method of attempting to arrive at a result. With the advent of paint and materials calculators, however, using an antiquated method to determine how much to charge – or more precisely, how much an insurer should be reimbursing the consumer – is unwarranted.
Still Around » Now that the collision industry has an accurate method of determining the amount, and therefore, cost of paint and materials used in a repair, we would expect it to be embraced and used everywhere – including by insurers. But many repairers are not being reimbursed according to this method, largely because they
report that insurers simply reject paint and material invoices and insist on compensating via the rule of thumb method of multiplying refinish hours by half the body labor rate. In every industry, businesses strive to be equipped and capable of producing products and services that are “state of the art.” The term “state of the art” refers to the “highest level of general development, as of a device, technique or scientific field, achieved at a particular time.” Progress, especially technical progress, is expected. Therefore, we have to ask ourselves why this fake formula for paint and material calculation based on an unscientific rule of thumb is continuing to be touted by insurers as the “industry standard” for determining these costs. Repair documentation has evolved to the point where everyone expects repair blueprints to be generated from a computer estimating and management system rather than paper and pencil. Now that the repair industry has a more accurate method of determining the true cost of paint and materials used in any given repair, it’s inappropriate for insurers to insist on making payment based on the antiquated rule of thumb.
Insurers Love Invoices » One of the most interesting questions on this issue is why insurers reject invoices generated by paint and material calculators designed to identify the actual costs associated with using those products. Insurers love invoices. How many times has an insurer demanded that a repairer hand over the towing or parts invoices (internal and proprietary business documents) before it reimburses on behalf of a consumer? So why are insurers suddenly dismissive of a bona fide invoice generated by a computer program expressly created to capture the true cost of paint and materials used in a repair? The answer is clear. Paint and material calculators typically demonstrate that the true value of the products Circle 36 for Reader Service
36
November 2012 | BodyShop Business
Circle 37 for Reader Service
LEGAL » Rule of Thumb States Against Low-Cost Selling A number of states besides Oklahoma condemn below-cost selling as a matter of state public policy: Arkansas — A.C.A. § 4-75-209 California — Bus & Prof Code § 17043 Hawaii — HRS § 481-3 Idaho — § 48-404 Louisiana — R.S. 51:422 Maine — 10 M.R.S. § 1207 Massachusetts — ALM GL ch. 64C, § 14 Minnesota — Stat. § 325D.04
used in the repair is higher than those values being reimbursed using the rule of thumb formula. The rule of thumb is also directly tied to the influence insurers exert in keeping the “average” body labor rate payable to shops artificially low. There’s no doubt that if the paint and materials programs produced a lower dollar value than the rule
38
of thumb, insurers would have immediately switched to those programs and dropped the old method like a hot potato. The fact that insurers haven’t moved on to a modern and more accurate method of identifying true costs, as the collision repair industry has, demonstrates their refusal to properly and fairly compensate consumers for
November 2012 | BodyShop Business
Circle 38 for Reader Service
Montana — Code Anno., § 30-14-209 North Dakota — Cent. Code, § 51-10-03 Pennsylvania— 73 P.S. § 213 Rhode Island — Gen. Laws § 6-13-3 Tennessee — Code Ann. § 47-25-203 West Virginia — Code § 47-11A-1 Wisconsin — Stat. § 100.30
the losses they suffer in exchange for those premium dollars we all pay for auto insurance. By insisting on using the old rule of thumb method, insurers can disguise deliberate underpayments to consumers who file legitimate insurance claims and continue to justify those underpayments as “industry standard” to the state departments of insurance.
Circle 39 for Reader Service
Circle 41 for Reader Service
LEGAL » Rule of Thumb Industry Standard » The rule of thumb formula is the industry standard. Or is it? We repeatedly hear that the rule of thumb formula is still the industry standard for determining paint and materials costs. The question that should be asked is, “The ‘industry standard’ as determined by whom?”
As discovery produced by State Farm in one of the lawsuits brought by Gunder’s Auto Center Inc., against the insurer indicates, State Farm personnel changed the repair shop’s answer to the survey question about how the shop charged for paint and materials from the use of a paint and material calculator to the rule of thumb
formula. (See article, “Gunder’s Claims State Farm Altered Prevailing Rate Survey,” at www.bodyshopbusiness.com). Similarly, other repairers have reported they were warned by an insurer that if they answered a survey question stating the use of a paint and material calculator rather than a rule of thumb approach, all of their responses would be automatically excluded from the survey results. Accordingly, we should be deeply suspicious of any claim that the rule of thumb formula is the current repair industry standard.
Breaking the Law? » Perhaps most interesting is an analysis of the reimbursement amounts produced using the rule of thumb method versus the paint and material calculators. In many instances, the rule of thumb approach actually compensates repairers at below-cost levels. This is troubling as federal and state laws take a dim view of the practice of selling goods at a price below the acquisition cost. Selling products at a below-cost price – especially doing so on a routine basis without the benefit of legitimate reasons like minimizing losses on perishable goods or reducing unsuccessful inventory – is presumptively predatory and can be a violation of the Robinson-Patman Act, 15 U.S.C. § 13(a) and many states’ laws. Oklahoma’s Unfair Sales Act, for example, states: “It is hereby declared that any advertising, offer to sell or sale of any merchandise, either by retailers or wholesalers, at less than cost as defined in this act with the intent and purpose of inducing the purchase of other merchandise or of unfairly diverting trade from a competitor or otherwise injuring a competitor, impair and prevent fair competition, injure public welfare, are unfair competition and contrary to public policy and the policy of this act, where the result of such advertising, offer or sale is to tend to deceive any purchaser or prospective purchaser, or to substantially lessen competition, or to unreasonably restrain trade, or to tend to create a monopoly in any Circle 42 for Reader Service
42
November 2012 | BodyShop Business
Circle 43 for Reader Service
LEGAL » Rule of Thumb line of commerce.” (15 Okl. St. § 598.3) Enforcement under the state unfair sales laws can be easier to obtain as these state laws, unlike federal law, typically do not require a demonstration of the market share of the below-cost seller and its power to hurt competition. Instead, the state’s inquiry is whether the below-cost selling occurs for a wrongful purpose that’s actionable – often as a crime – under the state’s laws. As the Tenth Circuit Court of Appeals found when reviewing a below-cost sale case under the Oklahoma Unfair Sales Act, “The purpose of [the Act] is simply to prevent loss leader selling and to protect small business.” Star Fuel Marts, LLC v. Sam’s East, Inc., 362 F.3d 639, 648 (10th Cir. 2004) (applying Oklahoma law).
The Inquiry » The question we must ask ourselves is, “What effect does below-cost selling of paint and materials
44
have on the collision industry?” It’s simple to argue that insurers demand that their DRP shops sell paint and materials calculated via the rule of thumb method, resulting in belowcost rates, because they can then use that activity to try to impose belowcost selling across the board on all collision repair facilities. Successful, forced below-cost selling of paint and materials throughout the industry enables insurers to decrease their claims payouts and increase their profits. It’s also apparent that – whether the DRP shops are overtly aware or not that their acceptance of the insurer’s required rule of thumb paint and materials reimbursement method often results in the sale of these goods at less than their cost – the DRP shops are willing to go along with the below-cost selling of paint and materials because their volume work arrangement with insurers coupled with be-
November 2012 | BodyShop Business
Circle 44 for Reader Service
low-cost selling allows them to capture more repair work for themselves and helps drive independent shops out of business. Therefore, criminal and civil inquiries should investigate whether insurers and their DRP shops are engaged in a conspiracy to sell (and purchase) paint and materials at below-cost prices with the desire to reduce the insurer’s overall claim payment and capture more customers and work for the DRP shops at the expense of independents.
Conclusion » It seems that the time to address the forced below-cost selling of paint and materials in the collision repair business is at hand. Such activity is not only improper but is typically illegal. Any repair shop, whether a DRP shop or nonDRP shop, needs to immediately look at its method of determining paint and material costs to ensure
Circle 45 for Reader Service
LEGAL » Rule of Thumb it’s not using a method that results in sales of these goods below the shop’s acquisition cost. Otherwise, shops may find themselves the subject of a criminal or civil investigation into improper selling activities. BSB E. L. Eversman is the chief counsel for Vehicle Information Services Inc., and the author of the Forbes.com “Best of the Web” award-winning blog, AutoMuse. She has served as the chair of the Cleveland
Bar Association’s Unauthorized Practice of Law Committee, vice chair of that association’s International Law Section and is listed in the National Registry of Who’s Who. Eversman is a frequent speaker and author on automotive legal topics and has been quoted in such publications as The Wall Street Journal Online, USA Today, Kiplinger’s Personal Finance, Cars.com, Yahoo! News and numerous trade magazines. She was also honored as the 2006 All Auto Appraisal Industry
Circle 46 for Reader Service
46
November 2012 | BodyShop Business
Circle 84 for Reader Service
Conference hall of fame inductee. She is recognized nationally as an authority on diminished value and collision repair issues, and she served as an industry resource for the National Conference of Commissioners on Uniform State Laws’ Uniform Certificate of Title Act drafting committee. Prior to launching the AutoMuse blog addressing automotive legal and consumer issues, Eversman wrote the legal column for the Web directory, AutoGuide.net.
Circle 47 for Reader Service
SHOP PROFILE
Learning from the Past This third-generation shop owner has his own way of doing things…influenced by a grandfather and father who preceded him. By Gina Kuzmick earn from the past” is a key mantra for Mike Schoonover. As a third-generation shop owner of a family-run business, the collision industry runs vigorously through his veins. While he has applied the knowledge he has gained from
“L 48
his predecessors to his business practices, he also strives to make Schoonover Bodyworks & Glass his own. With two locations in Shoreview and Stillwater, Minn., the stores offer Twin Cities customers not only collision repair but other auto-related services.
November 2012 | BodyShop Business
“You have to give [customers] the extra effort to make them go ‘wow’ and want to return, or refer family and friends,” Schoonover says. And by paying attention to his customers, as well as the business’ previous owners, Schoonover does just that.
Past to Present » It was a different world back in 1938 when Schoonover’s grandfather opened the business. Perhaps the biggest change in the industry has been related to insurance, which Schoonover recently discovered after uncovering a few old photographs.
Circle 49 for Reader Service
SHOP PROFILE » Learning from the Past
Schoonover Bodyworks & Glass Location: Shoreview and Stillwater, Minn. Established: 1938 Square Footage: 14,000 square feet Owner: Mike Schoonover No. of Employees: (14) – 2 administrative, 2 sales, 1 parts & production manager, 3 bodymen, 1 glass worker, 1 mechanic, 2 painters, 2 detailers
The photos, taken from multiple angles, were of some damaged vehicles that had suffered fresh collisions. “It looked like [my grandfather] was taking pictures for the insurance company,” he says. “It’s just kind of funny. Back in his day, insurers didn’t have claims offices. Shops dealt directly with each insurance agent, and the insurance agent would pay the bill. Obviously, there were no DRPs or anything like that at that point.” Schoonover got a taste of the industry at a young age. His father, Dick, frequently brought him along to NACE and other industry functions. And while technology and other aspects of collision repair have evolved over time, core issues have not. 50
“I was in a room as a little kid listening to the same things that we’re talking about today…these things about insurance companies and what they were doing at the time and what they were requiring shops to do,” he said. After his father retired in 2000, it took 10 years for Schoonover to gain full ownership. Following in his father’s footsteps, he decided to get active in the industry by joining organizations that advocate for repair shops and their owners: the Automotive Service Association, I-CAR, the Alliance of Automotive Service Providers of Minnesota, as well as the CAPA technical committee. “I think volunteering my time and
November 2012 | BodyShop Business
Gross Sales: $5,000,000 Repair Volume/No. of Cars Per Month: 200-plus Average Repair Cost: $2,900 DRPs: 12 (State Farm, Allstate, Progressive, Farmers, Liberty Mutual, MetLife, etc.)
getting active in these different associations and groups has been very beneficial,” said Schoonover. “I’m ‘in the know’ of what’s going on, and I get to meet the Randy Hansens and George Averys and the guys that are out in the industry.”
His Own Way » Although he has learned some valuable things from his father, Schoonover has his own method of running his business. While his father was a well-respected industry member, he was also a hard-nosed businessman. “You knew where you stood with him,” Schoonover recalls. “He was very quality-minded, detail-oriented and customer service-minded, and he
SHOP PROFILE » Learning from the Past expected everybody to give their best. If there was an issue or disagreement with an insurance adjuster or executive, he would let them know his displeasure.” Schoonover, on the other hand, takes a more understanding approach when dealing with these situations. “I’ll sit down and chat with someone about a problem. I don’t want to say [my dad and I] are polar opposites, but we have our own way of doing things.” Schoonover also attributes the differences in his management style and that of his dad’s to the industry itself. “I think back in those days, it was probably more rough and tumble. [My dad] was in an era where there were a lot of changes to your vehicles and your equipment and how you ran your shop and how your customers were expecting to be treated. And we’re just kind of used to those changes now. We live in a society where cars and phones and computers are disposable. There may not be the same type of commitment between employer and employee or customer-type relationships, so it’s just a different world. I think you’ve got to be more prepared for change and adapt to it these days and going forth.”
Rapid Repair djusting to the needs of its customers and adapting to a less than healthy economy, Schoonover Body Works & Glass developed a “rapid repair” service as a cheaper alternative to restoring the vehicle to pre-accident condition and OEM standards. “When the economy turned south, we only repaired [a vehicle] one way, and that was to restore it to its pre-accident condition and make it perfect,” Schoonover says. “And the No. 1 reason we weren’t having people come back was that it was too expensive.” Schoonover listened to his customers’ requests and crafted a new service to better suit their needs. With the rapid repair option, customers can choose to lower their repair costs by having aftermarket parts installed or getting dents roughed out instead of having the repairer do a complete overhaul of the vehicle. “Our closing ratio has gone up,” says Schoonover. “We’re probably fixing more things that we wouldn’t have fixed in the past. With this, [customers] know what to expect, and they’re pleasantly surprised by what it looks like.”
A
52
Circle 52 for Reader Service
November 2012 | BodyShop Business
Circle 53 for Reader Service
SHOP PROFILE » Learning from the Past Behind the Bays Estimating System: CCC ONE Management System: CCC ONE Spraybooth: Sterling waterborne booth Lifts: Nussbaum Measuring/Dimensioning System: Chief/Car-O-Liner Welding Equipment: Pro Spot i4 spot welder Paint Mixing System: Sikkens AutoWave Paint: Sikkens AutoWave Future Equipment Purchases: None
Going with the Flow » Adapting to change is core to Schoonover’s practices, and he’s often quick to do it. After noticing that print media was diminishing, he decided to step up his marketing by renovating his business’s website. It took a couple of years to put together, but it was worth the effort. The once dated-looking site now sports a clean, user-friendly and eye-
54
catching design. A lively animation of a car crashing grabs visitors’ attention as soon as they enter the home page. The phrase “We can fix that” then flashes across the screen as the car is magically fixed, reassuring visitors that they’ve made the right choice. From there, customers can check their vehicles’ repair status, learn about repair processes and view shop specials.
November 2012 | BodyShop Business
Circle 54 for Reader Service
Schoonover also decided to go green long before most shops by switching to waterborne paint. His shop has been solvent-free for about five years, and he has never looked back. “It’s better for the environment, and we have good, color-matching finishes,” he said. Similar to adapting to evolving technology and industry standards,
Circle 55 for Reader Service
SHOP PROFILE » Learning from the Past Schoonover also sees adjusting to insurers’ role in the industry as a vital component to survival. One way he does this is by sponsoring continuing education classes for insurance agents. These AkzoNobel/
Sikkens-conducted classes allow the business to build a stronger relationship with its agents. The courses, held twice a year at two different locations, focus on ethics and help insurers understand the repair
process. After each class, attendees venture back to the shop for a tour. “It’s a good way to get them to understand what’s going on in the business,” said Schoonover. “This was one of the things we could do to get to know the agents in the area and actually have something that’s worthwhile instead of doing the usual sales call. We wanted to be more than that.”
Expanding Services » As its name
Circle 56 for Reader Service
suggests, Schoonover Bodyworks & Glass provides expanded services, such as glasswork and detailing, which offer extra incentives for customers to return to the shop. “If we have a really good customer, we’ll give them the works for free,” Schoonover says. The shop also offers discounted oil changes for less than $20, allowing customers to maintain their vehicles without breaking their budgets. In addition, Schoonover Bodyworks & Glass is a Volkswagen-Certified Collision Repair Center. Schoonover chose Volkswagen as a strategic business move, since the average American isn’t driving a Jaguar or another high-end make. Schoonover sees becoming a manufacturer-certified repair center as a long-term investment. While he must purchase all-new equipment to meet Volkswagen’s standards, he believes it will pay off in the long run. “It’s the way the industry could potentially be going, with more certifications from OE manufacturers, and I wasn’t going to miss that opportunity,” he says.
Expand and Strengthen » It seems that Schoonover Bodyworks & Glass will only continue to expand and strengthen its practices. And while Mike Schoonover is offering more services than his grandfather did, he says that it’s not all about glitz and glam. “Keep it simple, honest and up front,” he advises. “It’s how we operate every facet of our business on a daily basis.” BSB Circle 85 for Reader Service
56
November 2012 | BodyShop Business
Circle 57 for Reader Service
CUSTOM REFINISHING
Wild to
Mild What is the perfect custom paint job? It depends on the vehicle. By Tom Ferry he perfect custom paint job depends largely on what kind of vehicle you’re putting that wild or mild job on. There are artists who use only black and create realistic-looking fire over the top. There are people who are obsessed with fades and other techniques. And there are painters who do a variety of three-dimensional tears, shadows, candies, pinstriping, etc. My philosophy is to do a theme that fits the car.
T
What the Customer Wants » The objective here is to do something the customer wants. If they don’t know exactly what they want, it’s fun to guide them through the process. I like it when a customer comes to me and already has a car that has been painted in a candy color but wants something simple to go with it. I’ve done many stripes that are fades topped off with a quarter-inch or less pinstripe around the work. I’m currently working on a 1978 Chevy pickup 58
that a customer wants to use to transport his Harley to events. Thus, I’m making it a tribute to Harley-Davidson. I two-toned it with black on top, silver on the bottom. The interior will be made black and silver to echo the theme, with the seats black with silver inserts. The break line will be done with a gold leaf around the edges of the design and some subtle skulls and fire inside the art area. The truck’s interior/exterior have been painted a la Chip Foose, which finishes the theme.
November 2012 | BodyShop Business
Or maye you have a plain car like a 1970 Dodge Dart swinger. It’s yellow with a black vinyl top – a perfect candidate for something on the exterior to “wow” it up. So I’m thinking twotone. Just define where you want the line and paint it a dark pearl black on top to blend with the black vinyl top. After the top side is painted, you need some sort of dividing line, maybe silver with some ghost images or whatever tickles your fancy, outlined in a non-offending pinstripe.
Snoopy and Wine » I once painted Snoopy riding his doghouse as the Red Baron for a Long E-Z homebuilt aircraft because the couple who owned it loved the Peanuts character. With no stencils, I hand-painted it on with some sterling paint. One of my custom painters is working on a black Pantera right now. It’s super straight like a mirror, but when you pop the back lid to look at the engine, it has grapes, bottles of wine, leaves, a full fizzing wine glass, etc., all over the engine bay and underside of the lid. Yep, he loves wine.
Money Talks » One guy loved money, so we did his ’73 Camaro Z28 in PPG Radiance Indy Green over shamrock green. Then we put a tasteful hole in the hood for his blower to stick out a bit. Radiance is my favorite candy as it has micro crystals in the base that make light refract in all directions. I found out how Radiance works from painting stripes on a new black Ford F-150 that faded from red to blue (Above) Where “Plymouth” normally would have been spelled out in big letters on the quarters of this 1970 Superbird I customized in 1986, I put “Black Ice” — the name of the band I was in at the time.
Product
Spotlight AudaNet Makes North American Debut Next-Generation Platform Comes to U.S. Following Proven Success Throughout Europe udaNet is an intelligent, next-generation automotive claims and collision repair platform from Audatex that seamlessly connects insurers, independent appraisers, repair shops and vehicle owners. Optimized for the North American automotive market, AudaNet is built on proven, innovative technology successfully used for years across 20 countries throughout Europe, where the platform processes more than 30,000 transactions daily. AudaNet provides optimized outcomes to insurers by maximizing efficiencies and customer satisfaction, while also reducing loss adjustment expenses (LAEs). For repair facilities, AudaNet delivers peak operational performance by increasing repair accuracy, reducing cycle times, maximizing customer satisfaction and optimizing shop success. Finally, AudaNet enables maximum vehicle owner
A
satisfaction by informing and empowering customers to get them back on the road as quickly as possible. The platform harnesses business rules engines, robust data connections and predictive analytics to deliver intelligent and seamless customer solutions. AudaNet solutions serve our clients throughout the automotive claim life cycle – from collision, to appraisal, and through repair or total loss settlement. Delivering maximum customer satisfaction is at the very heart of the AudaNet platform – the most advanced, innovative and intelligent automotive claims and collision repair platform in the world. Audatex 3D Intelligent Graphics offer 360degree rotation, unlimited zoom, colorcoded parts and substrate materials identification, making it fast and easy to create an accurate estimate.
Learn More: www.audanet.us (800) 237-4968
Circle 59 for Reader Service
www.bodyshopbusiness.com 59
REFINISHING » Custom Refinishing
Painting the Metallic Silver RHS Sill Panel on a Porsche I need to repair the RHS sill panel on a Porsche, which is attached to the quarter panel. The color is metallic silver and the car is 10 years old. What can I do to make this job turn out great?
Q.
Since the sill plate is not as exposed to the elements as the exterior of your Porsche, the paint should still be in pretty good condition, i.e. glossy and not faded too much in the door jamb areas. I assume the damage to be repaired is simply from shoes scuffing paint off the sill area through typical wear and tear. Most Porsches use a very fine metallic on their silvers, so you have to assess the gloss level. Keep in mind that the prime paint formulas in most mixing systems for Porsches are usually very close. You’re going to have to basecoat the entire sill plate and blend the silver into the inner door quarter panel lock pillar area, then clearcoat the job. I would first polish the quarter panel lock pillar to see what kind of gloss appears. If it polishes out glossy, then you’ll have the true patina and, when you spray your clearcoat, both sides will match. If you leave the opposite side alone and
A.
to green from back to front. As we approached it one night, you couldn’t see the truck from afar but you could see the stripes lit up like a street sign.
Super Bee » I’ve dreamed of custom painting my brother’s 1970 Super Bee we drove around in high school. The car has been sitting since 1976 and was supposed to have been completed for my his 30-year high school reunion. But we might make it for his 40th. It would be a bright yellow base PPG 643 light chrome toner with a splash of 617 orange toner. This would be the perfect color for the car that has yellow in the bumblebee emblems. Circle 60 for Reader Service
60
November 2012 | BodyShop Business
want to match the patina and don’t succeed and your newly painted side is too glossy, then you could hand polish the unpainted original side to try and get some more gloss out of it. You’re going to have to blend in your base silver and clearcoat the area without having to get into painting any of the exterior surfaces. I would mostly be concerned about the coarseness of the silver. One color can have 10 different variances. I experience this a lot, and the color formula variance cards come in handy. I’ve tried to outline what I believe are the things you need to consider. Sometimes the door jambs are almost a semi-gloss finish because they don’t put much clearcoat on the inner panels compared to the exterior. If this is the case, when clearing, turn up your air pressure, use fast reducer and thin it out twice as much as normal, then add some accelerator to dull out your clear if need be. You’ll get coverage but less gloss to match the factory sheen as close as possible.
Then I would do what legendary customizer Gene Winfield does: use my clearcoats on the vehicle to get a deep yellow with three different pearls. After basecoating with the yellow base, I would put on two wet coats of 2k clearcoat. Then I would mix up some clearcoat with an orange pearl in it. When you put pearls in clearcoats, you have to be careful of them sliding down or moving around. They have to be frozen in the spot where they were sprayed. I would use fast reducer with some accelerator and fog on the clearcoat without any concern as to glossing it out. I would bake it at 140 degrees for 38 minutes and wait for it
Circle 61 for Reader Service
REFINISHING » Custom Refinishing to dry for a full three hours. I would then lay down a full wet coat of clear, bake that and wait a day. I would
then fog on a coat of clear with a tangerine pearl, making sure that all the pearl didn’t move around. I would
repeat this whole process with gold pearl as my last pearl. Winfield did this all the time but used lacquer so he could do it fast. With urethanes, you have to wait longer. Some painters are probably wondering why I don’t use pearl basecoats. It’s because I don’t want the binder in my clears that turns toners into basecoat because it ruins the clarity, and the paint job wouldn’t have the depth I desire. My final step would be to top it off with three thick coats of 2k clear. Now I have three layers of pearls sandwiched between coats of thick clear, which offers a depth you normally don’t see in most pearl jobs and even three-stage pearl jobs. In the end, the pearls will tone down the bright yellow somewhat, but overall will have some good depth to it.
Wild to Mild » So what is the perfect custom paint job? The secret lies somewhere in between, with the interior and wheels playing an important role. The most important thing is to impress the owner. After all, beauty is in the eye of the beholder. BSB Tom Ferry is the head painter at Ketchikan Autobody and Glass in Ketchikan, Alaska. He can be reached at tomferry@gci.net. Circle 62 for Reader Service
62
November 2012 | BodyShop Business
Circle 86 for Reader Service
Circle 63 for Reader Service
»| Industry Update |« Airbags continued from pg. 8
lision marketplace and should be included in any NHTSA consumer recommendations for inspection and repair. In addition, it is not “Independent shops are more prevalent in the collision at all easy to discern whether aumarketplace and should be included in any NHTSA tomotive consumer recommendations for inspection and repair.” manufacturers or insurers will pay — Bob Redding, ASA’s Washington, D.C., representative for these inspections and repairs. about counterfeit airbags These are important conplaced within the past and to contact their autosumer questions that will three years by a repair have to be answered.” shop that is not part of a mobile manufacturer NHTSA has been with questions, they are new car dealership, or working with governnot as clear as to inspecwho have purchased a ment agencies, including tion and repair options replacement airbag onthe U.S. Immigration for consumers,” said Bob line, should contact a Redding, ASA’s Washing- and Customs Enforcecall center connected to ment, U.S. Customs and ton, D.C., representative. their auto manufacturer Border Protection and “Independent shops are to have their vehicle inmore prevalent in the col- the Intellectual Property spected and the airbag NHTSA suggests that consumers whose vehicles have been in a crash and had the airbags re-
replaced if necessary. “Although NHTSA does a good job highlighting the need for consumers to be vigilant
Circle 64 for Reader Service
64
November 2012 | BodyShop Business
Rights Division of the U.S. Department of Justice, to better understand the issue of counterfeit airbags and how to prevent them from being purchased and installed in vehicles. NHTSA is currently gathering information from automakers about their systems for verifying the authenticity of replacement parts and is working with the industry to make the driving public aware of the potential safety risk posed by counterfeit airbags. It has also posted to its website (www.nhtsa.gov) a list of vehicles for which counterfeit airbags may be available.
Circle 87 for Reader Service
»| Industry Update |« ASA continued from pg. 9 pants acknowledged ASA’s concerns and said they appreciated the level of accuracy ASA has provided to the industry so far in reporting on the pilot. State Farm’s representatives at the meeting also expressed a willingness to continue conversation with ASA’s collision leaders to address repairer concerns. As part of last week’s onsite discussion, State Farm provided an indepth look at why they’re piloting an electronic parts ordering application. “Why’s” included State Farm’s analysis of repair delays related to parts ordering,
relating a $43 millionper-day expense for rental vehicles, and details on their future expectations for the overall collision industry, based on a decline in driver’s license registration, increased crash avoidance technology, ride-sharing and claim frequency. According to State Farm, “Electronic parts sourcing and ordering is one of many efforts State Farm is pursuing to provide customers with an exceptional experience. Customers and repair facilities benefit from efforts to repair more vehicles (less total losses), improve the distribution of quality
recycled parts and improve cycle time.” Hearing this, ASA repairers provided questions centered around the inefficiency of the current State Farm system of “priced perfect” recycled parts and how this is to be addressed in the future. The ASA team also raised questions about the current decline of claims handling efficiency at State Farm and asked how this is being addressed. An important takeaway from the meeting was that State Farm officials said the size of the Select Service community is not expected to grow. Another impor-
Circle 65 for Reader Service
tant takeaway was that this application is not the conclusion of recommendations to come from State Farm to their Select Service shops, but rather a part of a larger global strategy. During the meeting, ASA representatives also emphasized their concern centering around discounted MSRPs and the potential negative impacts of this application on a repair shop’s bottom line. State Farm acknowledged this concern, stating: “MSRP pricing has not changed, and the margins have not been affected, during the test. In fact, the MSRP discount price col-
www.bodyshopbusiness.com 65
»| Industry Update |« umn has been removed from the tool. State Farm is not collecting data on MSRP discounts.” State Farm also said – similar to its earlier exploration of parts procurement involving the original equipment manufacturers and OEConnection – it is cognizant of the parts profit concern and, to date, there is no data from the pilot demonstrating that this application is having a negative impact on parts profit. “What is vital here,” said Denise Caspersen, manager of ASA’s Collision Division, “is that ASA continue to press State Farm for data on
this point and advocate for greater assurances against any negative impacts on parts profit. It is also vital to get a clear understanding of data collection and the implications of the usage of the data on the repair community.” The ASA team also discussed State Farm’s use of repairer data and its effect – and implication – on the Select Service scorecard, including the relationship between repairers and their local State Farm claims representatives. According to State Farm, “Repairers are under no obligation to purchase the least expensive part(s). Select
Circle 66 for Reader Service
66
November 2012 | BodyShop Business
Service repairers should continue to balance the scorecard components – quality, efficiency and competitive price – when servicing State Farm customers.” What ASA believes is critical – and was stressed by ASA repairers at the meeting – is the negative psychological effect of the repairer selecting the appropriate part for the job, and that choice potentially having a negative impact on their Select Service scorecard. This, followed by a conversation between the repairer and the local State Farm claims rep about parts selection after the transaction has
occurred, creates greater confusion and mistrust between the repairer and State Farm. At the end of the day, ASA stated, it’s the repairer who is responsible for providing the best possible repair and making judgments on what part to pick, not State Farm. ASA collision leaders then asked State Farm representatives, “If ASA were to join others in opposing this pilot today, would that stop advancement of the pilot?” State Farm replied, “No, this is a pilot, and the testing of the application will continue. Because many acknowledge the
Circle 88 for Reader Service
»| Industry Update |« need for electronic parts sourcing and ordering, State Farm does not see value in stopping this test.” “As the industry has seen, a ‘no’ to the pilot will not stop it, nor is ‘no’ changing the pilot,” said ASA’s Caspersen. “It’s not a ‘yes’ from ASA; it’s engagement. And, in order for repairers to bring forth their concerns and negotiate positive outcomes – including a reduction in the two-hour processing time (now lowered to 30 minutes); more efficient integration with the three major estimating systems; additional controls within the quoting
of shop owners represents the consensus of process (supplier quote senting businesses large ASA’s collision repair placeholders); and the to small, from independleaders, all of whom removal of the discountent to MSO, and from are shop owners and ed MSRP column (our non-DRP shops to Select managers.” biggest accomplishment Caspersen added, “Ac- Service shops – as to date) – it’s essential ASA navigates through complishing removal of that the ASA team continue to address State “What is vital here is that ASA continue to press State Farm, PartsTrader and all Farm for data on this point and advocate for greater others willing assurances against any negative impacts on parts profit.” to participate — Denise Caspersen, manager, ASA Collision Division in analysis of the pilot.” the piloting of this the discounted MSRP ASA commends the application.” column is a prime exammany collision repair ASA says additional members speaking up on ple of the importance of information was collectrepairers being at the behalf of repairers natable of discussion. I can- ed and provided during tionwide. Caspersen Automotive Service and said, “It’s not one person not over-emphasize the Repair Week (ASRW) in value of the engagement speaking to State Farm; of the ASA collision lead- New Orleans Oct. 10-13, what State Farm reps 2012. ership – a diverse group hear from ASA repre-
Circle 67 for Reader Service
www.bodyshopbusiness.com 67
»| Industry Update |«
Consolidators
Gerber Collision & Glass Opens New Location in Indiana
Caliber Collision Opens 18th Los Angeles-Based Store
The Boyd Group Inc. has acquired Preferred Auto Body in Portage, Ind., which will now operate under the Gerber Collision & Glass name. With the addition of this 5,950-square-foot facility, the Boyd Group owns and operates nine repair centers in Indiana, which brings the total number of U.S. locations to 154. “Portage is the largest city in Porter County and the third largest in northwest Indiana,” said Tim O’Day, president and COO of the Boyd Group’s U.S. operations. “The addition of the new Portage repair center expands our footprint to better serve customers and insurance partners in this growing market.”
aliber Collision Centers announced that it has acquired Hooman Collision Center in Inglewood, Calif. “Today’s acquisition and grand opening of our new Ladera Heights location increases our Los Angeles locations to 18 as we continue implementing our 2012 expansion plans,” said Caliber CEO Steve Grimshaw. “This new center provides ad-
C
ditional Caliber Collision capacity in the largest automobile market in the U.S. while providing our insurance clients the customer focus, operational consistency and cost management they demand in today’s competitive insurance market.” Caliber Collision’s newly acquired 30,000square-foot collision repair facility is located less than two miles from the
LAX airport at 737 North La Brea Avenue. Added Caliber COO Mark Sanders, “Our newest Los Angeles location provides yet another example of how we continue to grow across the California market as the collision repair provider of choice in every community we serve. Today’s opening brings the total number of Caliber Collision locations to 112 as we restore the rhythm of our customer’s lives across California, Nevada, Arizona, Texas and Oklahoma.”
Maaco Launches New Incentives for Multi-Shop Operators aaco announced that it has launched a new multistore operator (MSO) program that includes incentives such as lower license fees and royalty reductions for additional locations. The price of one Maaco license is $30,000 under the new program, with more discounts for each additional store. Two licenses are $45,000, three are $55,000, four are $60,000 and five are $65,000. After the fifth license, each additional license is $5,000. Opening multiple stores also comes with royalty reductions for the additional stores for the first three years. Royalties will be 2 percent for the first year, 4 percent for the second and 6 percent for the third. “Multi-unit operators are an excellent way for franchise systems to grow, and we wanted to make sure we were offering incentives to entice these kinds of owners,” said Jason Barclay, vice president of franchise development for Maaco. “We want to build on the success our existing multiunit operators have had by making it easier for new franchisees to get more than one license. We think there are
M
Continued on pg. 70 Circle 68 for Reader Service
68
November 2012 | BodyShop Business
»| Industry Update |«
Service King Closes Acquisition of Auto Body World ervice King Collision Repair Centers has closed its acquisition of Auto Body World Inc., which has eight large-scale, high-volume locations throughout metro Phoenix and Casa Grande. Terms of the agreement were not disclosed. By joining Service King, Auto Body World becomes a part of the third largest collision repair company in North America with 51 Texas locations throughout the Dallas, Ft. Worth, Houston, San Antonio and Austin areas. Service King’s expansion across Texas over the last three years has taken it from the sixth to the third largest collision repair company in North America, doubling revenue and location count. “We welcome our new teammates in Arizona to the Service King family,” said Service King CEO Chris Abraham. “We’re excited about the opportunity here. Arizona is special because it’s our first venture outside of Texas, but it’s not our last. “Service King is committed to continuing Auto Body World’s long tradition of excellent customer service and quality repairs with good relationships in the insurance industry. We are honored to add Auto Body World’s talented teammates and skilled technicians to our base of over 1,400 Service King teammates throughout Texas, and bringing our same level of health, retirement and career benefits to all new teammates in Arizona.” Added Auto Body World President Mark Turner, “We are very excited about Auto Body World joining the Service King Team. Both companies believe that we’re a great match for each other in that we share very common cultures, and while Service King
S
brings national insurance relationships and financial strength, Auto Body World brings dominance in
a new market, with a strong operations team and platform for rapid growth.”
Circle 69 for Reader Service
Circle 89 for Reader Service
www.bodyshopbusiness.com 69
»| Industry Update |« 1Collision Adds Two Illinois Body Shops to Network 1Collision, a Midwest chain of independent collision repair shops that operate with an established set of standard operating procedures, announced the addition of WHEEL-INN Body & Motor Works in Wheeling, Ill., and HEIGHTS Body & Motor Works1 in Prospect Heights, Ill., to its network. The grand opening of Heights Body & Motor Works1 was held September 26 at its new location at 871 E. Palatine Rd. in Prospect Heights. Owner Joe Pascucci, employees, friends, business associates and the press
attended the event. In addition to Heights Body & Motor Works1, Pascucci and his staff have operated Wheel-Inn Body & Motor Works for the past 30 years. According to 1Collision Network, Heights Body & Motor Works1 is a modern, state-of-theart facility featuring the latest technology in collision repair, an expert staff of trained professionals and a comfortable customer area with all the amenities. “Our expert staff is proud and enthused to be serving the collision repair needs of our friends
Circle 70 for Reader Service
70
November 2012 | BodyShop Business
and neighbors in Prospect Heights and the surrounding communities,” said Pascucci. Added 1Collision Network President Jim
Keller, “We’re proud to have Wheel-Inn Body & Motor Works and Heights Body & Motor Works1 join the 1Collision family of locations.”
Maaco continued from pg. 68 a number of potential franchisees interested in expanding quickly that will appreciate these MSO incentives.” Maaco has nearly 500 franchised locations across North America and system-wide sales of nearly $500 million. The company plans to continue to expand its presence in markets across the U.S., and growth projections call for approximately 60 new centers to be opened by July 2013. Markets targeted for expansion include Baltimore, Buffalo, Chicago, Cleveland, Dallas, Los Angeles, Miami, New York, Phoenix, Pittsburgh and Rochester, N.Y. The estimated initial investment for a Maaco repair center ranges from $300,000 to $400,000, including a $30,000 franchise fee. Maaco provides veterans with a 25 percent discount off its franchise fee through VetFran.
Circle 90 for Reader Service
»| Industry Update |«
National Virginia Body Shop Owner Invents New Waterborne Drying Device he last straw was when Tim Wall accidentally knocked over one of the “Christmas tree stands” or tripods in his booth set up to facilitate the drying of waterborne paint. The stand, mounted with air amplifiers, fell onto the car Wall was painting, denting the door he was blending. And that’s when he knew there had to be a better way. This was three years ago. Wall had been forced into painter duty after his regular painter quit due to problems the shop was having adjusting to the transition to waterborne. And that’s when he realized the shortcomings of the tripod stands. “They were always in my way,” says Wall. “Especially if I was moving down the side of a car, you would have to stop, shut the air valves off and slide it out of the way. Plus, I had to contend with the air hose from my air-supplied respirator I was dragging around with me.”
T
if he could swing them out of the way. So he came up with the “Wall Dryer,” a flexible arm with an air amplifier attached to it that could be affixed to spraybooth walls via magnets. Wall’s original design had the Wall Dryer bolted to the booth wall, but he soon discovered magnets worked better. The development process, which consisted of three different designs, took two years. Once he enlisted the help of one of his body technicians to build a prototype, he started using them in his booth and found that they worked great. “I brought in a few people from the industry to come by and check them out and they said I would be crazy not to patent this and that I could make millions,” says Wall. Wall took their advice, got a
Tim Wall, inventor of the Wall Dryer.
So Wall started getting quotes from companies to retrofit the booth with an alternative drying system. Wall says one system cost $34,000, and the other was $24,000 to $27,000. “That just wasn’t an option for us at the time, especially since the recession was in its prime,” he says. The tripod stands worked well as far as drying the basecoat, but Wall thought they would be better
Circle 71 for Reader Service
Circle 91 for Reader Service
www.bodyshopbusiness.com 71
»| Industry Update |«
Circle 72 for Reader Service
patent and took on the production of the Wall Dryer in his own shop. “If it really takes off, we’ll have to add on to the current facility or set up production in a different facility,” says Wall. And that just might happen. Wall has already received an order from a distributor for 1,000 units. Wall estimates he has invested almost $20,000 into turning the Wall Dryer from an idea to reality, and feels the sky is the limit as far as future sales. “Was my idea to get rich off this? I would love to retire off this, but I don’t foresee that,” Wall says. “I probably wouldn’t retire but keep on investing in it. It has done wonders for my crew here at the shop. A couple guys have actually come up with other ideas here that we may end up doing once [the Wall Dryer] gets going. This could turn into a whole other business because there are some other simple little tools we’ve made for years that some of the guys are now saying, ‘Hey, why don’t we put some patents on these things and see if we can sell them, too?’” Wall wouldn’t exactly call himself Thomas Edison, but he, like other shop owners, has come up with tools in the past to help his shop run more efficiently. For example, he created racks for storing parts that hang from the ceiling, which saves floor space and keeps his 7,000-square-foot shop organized. But the Wall Dryer is the first thing he dreamed up that he actually thought was patentable. How many Wall Dryers would a typical shop need? Wall recommends 10, which is the number he has in his 15- by 28-foot booth: two in the front, two in the rear and three down each side. With each unit costing less than $200 (not including the air amplifiers), the total cost would be under $2,000. When Wall initially transitioned to waterborne, dry time was 10 to 12 minutes in the humid environment of Virginia. But now he claims that in the most humid months of the year, dry time has been reduced to three minutes. “The reason is because you have air flow right at the panel forcing the water out versus having a system where you just have turbulent air that moves around the booth softly,” he says. The color of the Wall Dryer? Green. “We thought it was perfect because of the whole waterborne concept: earth- friendly and going green.”
Circle 92 for Reader Service
72
November 2012 | BodyShop Business
Circle 122 for Reader Service »
Statement of Ownership, Management and Circulation (Act of August 12, 1970; Section 3685. Title 39. United States Code.) BodyShop Business is published monthly at 3550 Embassy Parkway, Akron, Ohio 44333-8318, Summit County. Headquarters and general business offices are also located at 3550 Embassy Parkway, Akron, Ohio 44333-8318, Summit County. Publication no. is 0730-7241. Filing date is 9/20/12. Issue frequency is monthly with 12 issues published annually. Annual subscription price is $69. BodyShop Business’s publisher is S. Scott Shriber. The editor is Jason Stahl, and the associate editor is Gina Kuzmick. All are located at 3550 Embassy Parkway, Akron, Ohio 44333-8318, Summit County. BodyShop Business is owned by William E. Babcox, located at 3550 Embassy Pkwy., Akron, Ohio 44333. Known bondholders, mortgagees and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: none. BodyShop Business’s Extent and Nature of Circulation are: (Issue date for circulation data below is August 2012.) Average no. copies each issue during preceding 12 months
Actual no. copies of single issue nearest to filing date
A. Total No. Copies (net press run) 52,693 B. Legitimate Paid and/or Requested Distribution (By Mail and Outside the Mail) 1. Individual Paid/ Requested Mail Subscriptions Stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, advertisers’ proof copies and exchange copies) 52,100 C. Total Paid and/or Requested Circulation 52,100 D. Nonrequested Distribution (By Mail and Outside the Mail) 238 E. Total Nonrequested Distribution (Sum of 15d (1), (2) and (3) 238 F. Total Distribution (sum of 15c and e) 52,338 G. Copies not Distributed 355 H. Total (Sum of 15f and g) 52,693 I. Percent Paid and/or Requested Circulation 99.5
52,605
52,140 52,140
110 110 52,250 355 52,605 99.8
I certify that all above statements made by me are correct and complete. Pat Robinson, Circulation Manager
« Circle 123 for Reader Service
»| Industry Update |«
Corporate News Honda Launches ProFirst Body Shop Recognition Program merican Honda Motor Co. Inc. has announced the launch of the ProFirst body shop recognition program. Open to both dealer-owned and independent collision repair shops, the program is designed to promote the correct, complete and safe repair of Honda and Acura vehicles and provide support to shops that have demonstrated a commitment to a high level of customer care and satisfaction. To qualify, shops must conduct a minimum number of transactions using OEConnection’s CollisionLink software, be a designated I-CAR Gold Class Professionals business and have at least one person presently employed by the shop who has completed the Collision Repair for Honda and Acura Vehicles course (HON01). “CollisionLink is a component of the ProFirst program because of the numerous benefits it provides to both shops and dealers," said Bill Lopez, director of OEM program development at OEConnection. “Through CollisionLink, shops can take advantage of Honda’s Collision Select parts program, which enables them to use more genuine Honda and Acura parts while managing their overall repair costs. CollisionLink also helps to increase efficiencies and parts ordering accuracy, which means fewer returns, faster cycle times and, ultimately, more satisfied customers." Qualifying shops will receive a plaque, a place on the shop-locator tool on the recently-launched American Honda consumer website, free access to the Honda and Acura parts catalog, parts bulletins, and service and repair information.
A
Circle 73 for Reader Service
Circle 93 for Reader Service
»| Industry Update |« Sherwin-Williams to Host Annual Vision Conference in Palm Springs, Calif. herwin-Williams Automotive Finishes announced it will hold its A-Plus Network annual Vision Conference at the La Quinta Resort and Spa in Palm Springs, Calif., Dec. 5-7, 2012. The conference will provide more than 100 North American collision facility owners and managers with training, top industry speakers and group breakout sessions, all with an emphasis on continued success in a difficult economic climate. The A-Plus Network is made up of an exclusive group of collision repair specialists who reflect the industry’s highest stan-
S
74
dards. They are part of the Sherwin-Williams value added program that combines business solutions to help them improve customer service, employee growth, insurance relationships, process refinement, productivity and profitability. The conference agenda will feature many outstanding industry leaders and speakers from the collision repair and business arena, including: 䡲 Keynote speaker: Rex Green, managing director, BB&T Capital Markets 䡲 Matthew Ohrnstein, managing director, Symphony Advisors
November 2012 | BodyShop Business
䡲 Susanna Gotsch, director and industry analyst, CCC Information Systems Inc. 䡲 Tom Hablitzel, president, Sherwin-Williams Automotive Finishes 䡲 Roundtable conducted by Steve Feltovich, manager of business consulting services, and Lee Rush, strategic account manager, multiple shop operators (MSO)/auto auctions; both with Sherwin-Williams Automotive Finishes. After the keynote and guest speakers are finished, a number of breakout sessions will be held in tandem with peer-to-peer discussion groups
Circle 74 for Reader Service
throughout the three-day event. The discussion groups will give attendees the chance to review financial performance, discuss lean implementation, build marketing plans and define their goals. “This upcoming national conference is just one of several meetings our Vision Group members attend and interact extensively with their peers. These are all designed to keep their businesses at the industry forefront,” said Troy Neuerburg, manager of marketing business services at Sherwin-Williams Automotive Finishes.
Product
Showcase Quickly Secure Vehicle Title The IAA Title Management and Title Tracker have been developed in collaboration with insurance companies, enabling IAA to understand the user’s and the industry’s need for both a full service and a self-service title procurement offering. These solutions help to reduce the length of time it takes to secure a vehicle title and sell the vehicle at one of IAA’s 160-plus auctions. This translates into improved cycle time, increased returns and overall resource savings. Insurance Auto Auctions www.iaa-auctions.com Circle 150 for Reader Service
Eliminate Filmy Residue Wizards’ Mystic Spray Wax provides an instant bond on all paint types with a gloss after application and sustained water beading and slickness wash after wash, according to the company. It’s designed to eliminate hazing and white filmy residues, and can be used on any hard surfaces as a dry wash, quick detailer or wax extender. Wizards Products www.wizardsproducts.com Circle 153 for Reader Service
Speedy ‘Green’ Clearcoat click&go from AkzoNobel is a “pouch and frame” packaging solution designed to maximize productivity and efficiency. Painters simply open the package to combine the clearcoat and hardener. Once the package is closed and given a quick shake, it’s immediately ready to be secured on the paint gun – reducing prep time and environmental waste while speeding up the job. AkzoNobel www.akzonobel.com Circle 151 for Reader Service
Color-Coded Polishing System The siachrome Polishing System utilizes a color code to ensure process-reliable polishing. The system includes “CUT,” a scratch remover in a yellow-accented bottle; “FINISH,” a micro-scratch and swirl mark remover in a black-accented bottle; and “PEARL,” a white-accented bottle that contains a glossy paint sealant. The “MAGIC” cleaner can also be used with the system. sia Abrasives www.sia-USA.com Circle 152 for Reader Service
Expand Your Web Presence Summit Site Builder helps shops expand their website presence so customers can find what they need when they need it. SCI handles the design, development, maintenance and hosting. The result is a collision center website that’s more informative, interactive and searchable. Summit Consulting International www.sciusa.com Circle 154 for Reader Service
www.bodyshopbusiness.com 75
»| Product Showcase |« User-Friendly Lift The new PCL-18 portable column lift system features an easy-to-use design that reduces operator fatigue. The six-inch diameter Cush-Ride front wheels feature an adjustable active leaf spring design that provides variable up-front ground clearance for smooth traveling over uneven floors, deteriorating asphalt, expansion seams and thresholds. Intuitive touchpad controls allow users to operate, view and change operation parameters directly from each individual, touch-sensitive display. BendPak www.bendpak.com Circle 155 for Reader Service
Permanently Repair Cracks The MS-2500 Magna-Stitcher Plastic Repair System has all the power and accessories needed for structural repair of plastic parts. It works by welding a rigid stainless steel stake into the surface of the plastic, resulting in a permanent repair of the crack. This American-made system features a powerful work light in the gun to illuminate hard-to-see areas and comes with an assortment of Magna-Stakes. Motor Guard www.motorguard.com Circle 156 for Reader Service
Battery-Operated Hot Stapler The Cordless Hot Stapler is America’s first battery-operated hot stapler plastic repair kit. It uses heat to embed one of the included stainless steel Breakaway StapleClips into the plastic to “stitch” tears in plastic back together. The staples can be used on any part, while a lightweight, cordless construction gives the technician maneuverability and agility. The kit includes seven types of Breakaway StapleClips, three interchangeable angled tip adapters, a charging adapter and a storage box. Dent Fix Equipment www.dentfix.com Circle 159 for Reader Service
Protect Customers from Faulty Parts As the nation’s leading automotive parts certification organization, CAPA protects you and your customers from inferior replacement parts. Only parts that pass specific tests earn the right to be called genuine CAPA Certified replacement parts. Certified Automotive Parts Association www.capacertified.org Circle 157 for Reader Service
iPad-Friendly Estimating System The CCC ONE Tablet expands the system’s mobile presence to the iPad 3. With a larger, easy-to-read screen, users can more easily capture customer information, view estimates and manage production. They can also scan the VIN, capture administrative information and take photos – all from the same device. CCC Information Services Inc. www.ccc.cccis.com Circle 158 for Reader Service
76
November 2012 | BodyShop Business
Eliminate Estimating Guesswork ALLDATA Compliance automatically verifies estimates against regulations applicable to repairs, DRP guidelines and shop business rules. This eliminates guesswork and reduces lookup times, ultimately resulting in greater shop productivity. Shop owners can create and comply with customized internal business rules as well. ALLDATA www.alldata.com Circle 160 for Reader Service
»| Product Showcase |« High Performance Waterborne Primer Envirobase High Performance EPW115 Waterborne Speed Prime is the latest addition to PPG’s waterborne product line. It offers direct-to-metal performance and may be applied over properly prepared substrates, including cold rolled steel, aluminum and galvanized metals, plastic, E-coat, OEM or previously repaired refinish paints. It air dries quickly and is ready to sand in 30 minutes. It has a 24-hour pot life and is currently available in gray, with black and white options available soon. PPG Automotive Refinish www.ppgrefinish.com Circle 161 for Reader Service
Remove Moisture for Super Dry Air The Solution from Martech works with the existing compressed air source to generate clean, dry, heated atomizing air. When placed near the point of use, the four-stage filtration is outfitted with an automatic moisture discharger. The clean air is then further filtered to remove moisture content for super dry air. A controller allows users to set the temperature of the atomizing up to 165 degrees Fahrenheit.
Unlock Vehicle from Outside BigEasy Lockout Kits make getting into a locked vehicle a cinch. Simply insert the included non-marring or inflatable wedge to relieve enough pressure to open the door, then use the tip of the BigEasy to manipulate the electric/sliding lock button or door handle. Kits also include a lock knob lifter and a paint protector. Steck Manufacturing www.steckmfg.com Circle 165 for Reader Service
Martech Services Company www.breathingsystems.com Circle 162 for Reader Service
Air Cleaner for Small Shops U.S. Body Products/Airomax has a new smaller air cleaner suitable for shops up to 700 square feet in size. After using the Model 700, the shop air will be 75 to 90 percent cleaner, claims the company. With an included silencer, this product features a special price of $1,095 until Dec. 31, 2012. U.S. Body Products www.usbodyproducts.com Circle 163 for Reader Service
No Towers in the Way The Multiple Vector Pull gives you total access to the bottom of a car without having to push big, bulky pull towers out of the way. Being able to put multiple pulls close together on one rail makes pulling safer by evenly distributing the pull load. BlackJack Frame Machines www.blackjackframe.com Circle 164 for Reader Service
Ultra Velocity Clearcoat Lightning Clear is a high quality, ultra velocity urethane clearcoat that can be used for spot and panel repairs. It features outstanding gloss, fast air dry and easy buffing in 20 to 30 minutes, according to the company. It performs well in all booth types, allowing increased productivity and reduced cycle times. Used as directed, the ready-to-spray VOC is 2.1 lbs./gal. (251.66 g/L). Vogel Automotive Coatings www.axiscoatings.com Circle 166 for Reader Service
www.bodyshopbusiness.com 77
»| Classifieds |«
MarkiNgpeNdepot.coM Collision Shops, Towing, Auction Sites, Dealers, Recyclers, OEMs Tow Pro $2.50 Autowriter $3.50 Posca $3.50 Bopagla $2.00 Unipaint $3.86 MPD-15 $1.30 Volume Discounts!
Body Shop Tools • 800-423-4692 customerservice@morganmfg.com www.morganmfg.com
Call 888-906-9370 or online at
markingpendepot.com
MIG / TIG / PLASMA / SPOT * Fixed & Flex-Neck Torches * Tips / Nozzles / Caps / Diffusers
* Wire / Rods / Tungsten * Helmets / Gloves / Safety Gear
The Body Shop Specialists Toll-Free 1-866-568-3170
WELDINGDIRECT.COM 78
3/8" and 1/2" Diameter heat treated alloy steel slide hammer hooks. 3/8" Diameter right angle hooks now available. Part No’s JR-16R & JR-16RF
November 2012 | BodyShop Business
»| Classifieds |«
Quality Solutions for the Collision Industry
1.800.529.2640 W W W . K AY C O S P R AY B O O T H S . C O M
Now Dismantling 2011 Hondas New, never used 䡲 Most models 䡲 Fronts, doors & clips 䡲 Mechanical & interiors
View @ partsbyweller.com Or call 616-538-5000
BodyShop Business Classified Call Tom Staab today at 330-670-1234 ext. 224
1-800-472-4551 Wholesale Body Shop REFINISHING SUPPLIES: Sherwin Williams, Sunfire, Spies, House of Color, Dimension, AWLGRIP, 3M, Marson, Fiberglass-evercoat, USC, SEM, Mequires, Pin Stripe, Binks, DeVilbiss, SATA, Tools & Equipment!
Great Service & Lowest Prices. Paints Plus, Stover, MO. www.paintsplus.com
• Original Equipment Wheels In Stock • Limited Lifetime Guarantee • 1000s of Wheels In Stock • Affordable Prices
We ship from eight different locations: Dallas, Houston, San Antonio, Los Angeles, Philadelphia, San Francisco, Chicago, Miami
Alloy Wheel Remanufacturing Order your Wheels at:
www.newwheel.com or 800-486-0931 Body Shop Inventory & Web Software by Rossknecht Software www.rossknecht.com
A Windows® inventory system for Body Shops that also salvage vehicles or have new/used parts to sell – vehicle and parts inventory, invoicing, reports, instant sales totals, bar-code labels, digital pictures, electronic catalog of body parts. NEW: Put your inventory on your Website included. No monthly fees. $895 complete. Free Demo CD. bpsales@rossknecht.com phone 303-884-5315
www.bodyshopbusiness.com 79
Publisher’s
Perspective Parts, Parts...
and More Parts hen I started my official career in the automotive business 33 years ago, the No. 1-selling SKU was the FL1-A. This Motorcraft spin-on filter fit every Ford produced with a spin-on filter, except for a few applications that required a shorter filter – and that was an FL 300. That’s all you needed to know and have on the shelf to cover oil filters for all the Fords out there.
W
Then, around 1980, the Escort arrived on the scene and brought with it the FL 400. Today, the Ford stores tell me there are about six different kinds of filters. I know that doesn’t sound like a big jump, but that’s only the number of filters – and on one manufacturer! What about all the other manufacturers (the number of them has also doubled in the same amount of time) and all the increased number of models each of them produces? When you add in the components and technology that’s in and on vehicles today, it all adds up to the condition known as “parts proliferation.” Parts proliferation is not entirely new in this business. It has been on the increase for many
years. The OEs individually have tried to get the condition in check over the last 10 years, but with all the other influences I described above, it continues to grow exponentially. With the intense competition at the automaker level to bring out new products, and the rate at which technology is changing, don’t look for this phenomenon to decrease anytime soon. The good news is that we have excellent inventory and catalog systems available to assist us in managing all the required inventories. Logistics is light years ahead of where it used to be, and the supply chain has been streamlined to take unnecessary steps and time out of moving it through the system. Remember, this is the aftermarket. For more than 60 years, we have solved the problems of parts and keeping the nearly 240 million vehicles in the U.S. on the road. I know we’re up to this particular challenge, too. By the way, did you know that the 2014 Honda Accord Hybrid goes on sale in January?
S. Scott Shriber, Publisher Email comments to sshriber@babcox.com
Circle 81 for Reader Service
Circle 82 for Reader Service