BSB July 2013 by Babcox Media

Spraybooth Technology Âť Hiring a Consultant Âť Web Ranking Tips

July 2013//Vol. 32 No. 7

www.bodyshopbusiness.com

More shops are considering OE certification as a way to differentiate themselves.

ertification

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Inside

July July 2013

Vol. 32 No. 7

ON THE COVER Eye on Certification More and more collision repair facilities are considering OE certification as a way to stand out from the competition.

FEATURES

50 Spraybooth Q & A TECHNICAL

Ever wonder about some of the technology on spraybooths? Wonder no more, because we have the answers.

60 Hiring a Consultant BUSINESS

Are you at your wit’s end with your business? Sometimes a fresh pair of eyes is just what you need.

SHOP TALK Editor’s Notes

8 10 Publisher’s Perspective 14 Clark’s Corner 20 Web Presence Management Jason Stahl goes back to school.

Be heard on the issues affecting you.

Sprucing up your shop can pay great dividends.

Has a penguin hurt your Google search ranking?

DEPARTMENTS

Paint—it’s what you do.

It’s all we do. See our ad on page 63

Guess the Car ....................................................................................4 Industry Update ..............................................................................12 Tech Tips ........................................................................................26 NASCAR Performance ......................................................................30 Product Showcase............................................................................84 The Shop ........................................................................................88 BODYSHOP BUSINESS (ISSN 0730-7241) (July 2013, Volume 32, Number 7): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2013 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

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Guess

the Car

#123

SOLVED! See the August issue for winner of Guess the Car #123.

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 July 31, 2013. *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.

Scent-Uri = (Buick) Century #122

WINNER I want to catch some rays.

#124

“Let’s get physical!”

July 2013 | BodyShop Business

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Rhonda Fiore, office manager, Fordyce Auto Center, Louisville, Colo.

Roo-tan = (Volkswagen) Routan

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BodyShop Business Collision Repair Shop

Executive of the Year Nomination Form FACTS ABOUT THE NOMINEE: Name and title of nominee: __________________________________________________________________________ Company name: ________________________________________________________________________________________________________ Nominee’s daytime phone: ( ) ______________________________________________________________________ Nominee’s company address: ________________________________________________________________________ City: ____________________ State: ___________ Zip: ____________________________________________________ Nominee’s date of birth: ___________Total number of years in the collision repair industry: ________________ Education (list schools attended, degrees earned): ______________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________

NOMINEE’S COLLISION REPAIR INDUSTRY BUSINESS HISTORY: List shop(s) worked for and/or owned, dates and positions held. Review growth and development of business(s) this person has been in charge of: ________________________________________________

__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ NOMINEE’S SIGNIFICANT COLLISION REPAIR INDUSTRY CONTRIBUTIONS: List any significant milestones, accomplishments, rewards, recognition, special achievements, etc. Review what makes this person different from the average shop owner: ______________________________________

__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ INDUSTRY SERVICE RECORD/VOLUNTEERISM: List all industry association involvement, leadership positions and committee activities nominee has been involved in, including date, position held, special achievements attained, special honors/recognition and offices held: ________________________________________________________________________

____________________________________________________________________________________

Nominator’s place of business: __________________________________________________________________________________ Nominator’s signature:

________________________________________________________________________________________

Nominator’s daytime telephone: (

) ____________________________________________________________________________

NOMINATION FORM MUST BE RECEIVED BY AUG. 30, 2013. Mail to: BodyShop Business, Executive of the Year, 3550 Embassy Parkway, Akron, Ohio 44333; fax completed form to (330) 670-0874; or access the form online at www.bodyshopbusiness.com.

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Editor’s

Notes

Publisher

S. Scott Shriber, ext. 229 sshriber@babcox.com Editor

Jason Stahl, ext. 226 jstahl@babcox.com

Back to School

Associate Editor

pril 23 seems like a distant memory to me now. Rain and cold has gratefully given way to the steamy hot kettle cooker of summer. Still, I was excited to go to Naperville, Ill., and watch one of the best trainers in the collision repair industry, Mark Clark, hold court in front of 20 or so jobber store managers as part of the PPG Platinum Distributor Accelerated Distributor Development Series.

Mark has been doing this for a long time, and he has written more articles for BodyShop Business than anyone. The man knows his stuff when it comes to collision and paint. I had never sat in on one of his classes, and what I was most impressed with was his ability to speak from a real-world perspective of owning a PBE store. When appropriate, he explained to the class how he handled certain situations, but by no means was he saying it was the only way. In fact, I quickly realized that

one of the most valuable things the class had to offer was each person offering their own perspective of running a PBE store in their own market. While some of them could say, “Well, that would never work in my market” or “My customer demographic is different,” it was nonetheless interesting to hear about each store’s delivery and accounts receivable policies and how technology has helped them. The folks in this class represented the créme de la créme in the jobber world, and so it was neat to see their aggregated sales revenue and other data for comparison sake. But numbers aside, the class also dealt with inventory, employees, human resources, marketing and more. Mark led off each part by saying what he used to do in his store, asking the students what they do, and then coming up with action steps to implement once they got home in order to improve. I learned a whole lot, and for that I say: “Thanks, Mark and PPG!”

Jason Stahl, Editor Email comments to jstahl@babcox.com

Gina Kuzmick, ext. 244 gkuzmick@babcox.com Contributing Editors

Charlie Barone, Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, Tom Ferry, Curt Harler, John D. Lyman Sr., Hank Nunn 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 Website: 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.

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Publisher’s

Perspective Issues, Issues,

Issues

hope all of you are having a good year. As I write this column, we’re at the halfway mark. Where is 2013 going? In the last few months, I’ve had the opportunity to be with many of you at industry and association events. It’s always great to meet with you and hear what’s going on in our industry. Suffice it to say, we here in the collision industry are never short on issues.

At the April CIC meeting, the important issue of OE repair standards and which ones would be used and accepted by the industry was discussed. This is a very sticky situation with many different points of contention. One of the major ones is what to do when there are not standards for a particular repair. Responses to this question varied back and forth, and it’s still not decided. You all know that I have a 30-year OE background, so you can pretty much guess where I stand on this issue. For everyone involved – you, the insurer and the vehicle owner – we need a specific set of repair standards. These need to either be created by those who built the vehicle, or there needs to be an agreed upon procedure on what to do when there is not a written repair process. There can be no middle

ground on this issue. You, the repairer, are dead in the liability seat if not. Agreement on standards will be good for the industry. They will reduce shoddy repairs, make vehicles more safe, reduce overall costs and get you out of the liability seat if you follow them. The second thing that came up was the issue of consistent reimbursement for materials used. There seems to be a wide variation in what shops are paid for job materials and supplies. There doesn’t seem to be any rhyme or reason for what’s paid. This, too, needs to have an agreed upon standard. So where does this leave all of us? In the driver’s seat! Let me finish before you think I’ve gone mad. There are roughly 45,000 collision repair facilities in the U.S. Alone, the voice is small for each one, but together, you’re very loud. You need to get involved in these issues, be heard and be part of the solution. Go to CIC and industry events and make your thoughts and wishes known. Use your associations like ASA, SCRS and others to be heard. These are your associations, and they’re there to get things done industry-wide for you. Your first step is to be part of solving the issue. Today is the day to get started.

S. Scott Shriber, Publisher Email comments to sshriber@babcox.com

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Industry

Update Quest Specialty Chemicals Acquires U.S. Chemical & Plastics he Quest Specialty Chemicals family (QSC) has announced its completion of the acquisition of U.S. Chemical & Plastics (USC). U.S. Chemical, based in Massillon, Ohio, is a leader in automotive refinishing products, including a full line of paints and coatings, plastic fillers, putties and other accessories used in the collision repair industry. QSC is positioning the U.S. Chemical product line within its whollyowned Quest Automotive Products division, joining Matrix System Automotive Finishes. Matrix System offers a complement-

ary line of intermix basecoats and is known for exceptional colormatching capabilities and high performance clearcoat products. U.S. Chemical brings several well-known prod-

“It positions Quest Automotive Products as a complete source for critical supplies, from substrate to clearcoat. The addition of the U.S. Chemical product family solidifies our position as a world leader

ucts to the Quest family, including the USC-branded products Pro-Spray and SprayMax. “This acquisition means a great deal to our end users, automotive collision centers and body shops,” said Doug Mattscheck, CEO of QSC.

in innovative automotive refinishing.” Added David Brunori, president of Quest Automotive Products, “We are excited at the opportunities the U.S. Chemical product family brings to our business. The Matrix product line has always

been a leader in offering quality finishes, exceptional customer service and unparalleled color matching. The U.S. Chemical products continue that tradition and create a product range that makes Quest Automotive Products a real value to customers, from small shops to large collision centers. “Our customers will not experience disruption in services or product delivery as we begin our integration of USC and Matrix System. Our focus as we integrate these organizations will be to give our customers a larger range of products to choose from and offer one-stop shopping. Equally critical is finding new relationships with customers who see the value that the Quest Automotive family of products brings to their shop. From waterborne to solvent intermix systems, from fillers and Continued on pg. 70

Maryland Collision Repairer Wins

Short-Pay Lawsuit Against GEICO Maryland body shop owner has won a shortpay lawsuit he filed against GEICO on behalf of a customer. Mark Schaech, co-owner of Mark’s Body Shop of Baltimore, filed the suit against GEICO due to the insurer’s refusal to pay $392.95 in repair costs on behalf of its policyholder. The underpayments included: degreasing vehicle prior to repair; feather, prime and block repaired panels; clean vehicle for delivery; clear OBD fault codes; reset electronics (recorded settings); mask for primer; and overhaul door handle for refinishing. “We offer exceptional quality and service to our customers, and to continue to do so without being

July 2013 | BodyShop Business

properly compensated is simply unreasonable and unsustainable,” said Schaech. “While my father (partner) and I would rather avoid having to take such legal actions, something had to be done as the insurer’s efforts to underpay our customers continued to increase. I felt like that guy in the movie Network where he stuck his head out the window and yelled, ‘I’m mad as hell and I’m not taking this anymore!’ “While Maryland does not allow the recovery of legal fees to the prevailing parties in such issues, we couldn’t allow that to be a deterrent in our being able to properly serve our customers and our employees. Insurers have continued cutting their costs while our Continued on pg. 70 Circle 120 for Reader Service »

»| Industry Update |«

North Carolina Body Shop Wins

Short-Pay Arbitration Against Nationwide ichael Bradshaw, vice president of operations for K&M Collision in Hickory, N.C., was awarded claimed short-pays in a court-ordered arbitration. The binding arbitration was the result of Bradshaw filing a lawsuit on behalf of K&M Collision’s customer against Nationwide for the insurer’s underpayments of what were determined to be reasonable and necessary repair costs. In North Carolina, every lawsuit filed goes to binding arbitration, and only after same can either party then seek a trial if so inclined. The insurer’s short-pays included: labor rates ($48 body and refinish, $80 mechanical and $65 frame); procedures (i.e. sand and buff, final detail, road test, color tint and collision access time); invoiced paint and materials; sublet markup; fixture usage; and a $250 damage analysis fee, which included a comprehensive part-by-part inspection of all components including exterior panels, inner structure, mechanical components, and SRS and seat belt systems. The award also included storage charges at a rate of $50 per day for a total amount of $2,506.98 plus accrued interest until the insurer’s full payment is made. “I’m glad the courts recognized who the repair experts

were,” says Bradshaw. “From the beginning, I was very confident we would succeed through our legal system in proving all our charges to be both reasonable and necessary. For any insurer to expect all shops to operate by the same rates, procedures and charges regardless of training, manufacturer certifications, equipment and facilities is ludicrous. The fact is we have made a commitment to repairing vehicles properly, adhering strictly to all manufacturer repair methods and guidelines, and what we’re consistently finding with some insurers is they care very little about manufacturer certifications and proper repairs and only about bottom-line cost and the cheapest repairs possible. My father (the CEO) and I decided if we were going to stay in business and continue to repair vehicles properly, we could no longer accept insurer-dictated repair costs. We found that short-pay litigation was necessary to stop insurer underpayments and provide our customers with the factory-certified repairs their policy affords them.” Bradshaw credited Erica Eversman, Ray Gunder, Barrett Smith and many other industry experts as well as his legal team of Jason A. Orndoff and William E. Morgan for his legal victory. “I hope our actions and results enContinued on pg. 70

State Farm Ordered

to Pay Gunder’s Legal Fees judge has ruled in a fee dispute that State Farm has to pay Gunder’s Auto Center’s legal fees of $76,157 relative to one of two initial lawsuits owner Ray Gunder levied against the nation’s largest auto insurer for short pays on behalf of two of his customers. Gunder and his attorney, Brent Geohagan, have reached a tentative out-of-

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court agreement in the other case for the insurer to pay legal fees in the amount of $7,250 plus accrued interest, which brings the total amount to be paid by State Farm to an estimated $83,400 in these two cases. Efforts were initially made by the insurer to condition a non-disclosure agreement in exchange for payment, but Gunder refused and the

court’s award was not contingent upon same. “The extensive fees were incurred due to the substantial time our attorney invested to research and combat State Farm’s initial efforts to defend against the short-pay lawsuits and their efforts to discourage and stop me,” said Gunder. “We didn’t do it alone; besides having a great legal counsel, we had the on-

going financial and moral support of many repairers and friends across the country. We’ve hung in there because we knew we were right and we wanted to blaze a trail up that mountain so other repairers wouldn’t have to make the significant investment we did. “The path is now clear and easy to navigate. The heavy lifting is done, many other repairers are now following our lead and even more are looking into doContinued on pg. 70

www.bodyshopbusiness.com 13

Clark’s

Corner

By Mark Clark

Have You Got

the Look?

tanding out from every other local body shop is a difficult process. When I travel, one of my hosts often says that I just “have to see” so-andso’s shop because of how cool it is. Those visits lead to tours of some pretty thoughtfully designed collision repair facilities. Without exception, these shops look really good from the street, the parking lot and the office.

Looks Are Everything » Many

get that their vehicle is their second most valuable asset, and unless you look like you’ll take good care of their car, they’ll try the super clean-looking guy they drove by to get to the suggested but unkempt DRP shop. The signs, the lawn, the parking lot and the window glass all send a message to anyone driving by. Mrs. Smith only has a collision every seven years, so she has lots of time in between to drive by lots of local body shops. She’ll remember the shipshape ones.

years ago, I was conducting an informal customer survey about choosing a body shop for a BodyShop Business story. At the same time, a Louisiana college was doing a similar survey. Not surprisingly, both of our results mimicked those that every insurance company has identified as a key part of Mrs. Smith’s repair facility choice: a squeaky clean presentation. Every survey ever done about collision repair indicates that the consumer is favorably impressed by a clean facility and a welcoming attitude. I’m at a loss to explain why, if clean is so important, that many body shops aren’t. Physical presentation is the required first step in a profitable close rate. If your shop’s appearance from the street doesn’t look at least as professional as your competitor’s shop, Mr. and Mrs. Smith will drive right on by, even if their insurance company directed them there. Never for-

Other vital consumer preferences that collision repair marketing studies agree are important include a prompt reception, a welcoming attitude and a sympathetic ear. And they mean every time, every shopper, not just when nothing else is going on. I watch it happen frequently, even at the sparkling clean shops I’m privileged to visit. The receptionist and estimator are upbeat and welcoming to the first Mrs. Smith in the door each day. As she heads off for the shop’s attractive, well-lit waiting area for some hot or cold beverages, the phone rings, and rings again and again just as the next few Smiths drive in for some help. One by one, the prompt recognition (“I’ll be with you shortly, please enjoy a fresh coffee”) becomes ignoring everyone except the rambling caller on the telephone. The friendly attitudes and pleasant smiles turn into harried scowls as

July 2013 | BodyShop Business

Attitude Change »

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»| Clark’s Corner |« each new customer seems to indicate more workload for the staff; clearly, they’re missing the point that more work is the objective. Finally, the salesperson’s sympathetic ear transforms from a patient recipient of a vivid description of every moment of Mrs. Smith’s once-every-sevenyears collision to an “Uh huh, uh huh, sit over there.”

Sign of the Times » So you say your shop meets all my listed criteria so far? Congrats! It takes a lot of work to maintain a shiny, clean building, parking lot and office every day. But how will I choose among your shop and all the other clean and friendly good guys? Signage sends an important message (pun intended). Easy-toread, colorful and professional signs go a long way toward solid-

July 2013 | BodyShop Business

ifying a desirable experience for the Smiths. From the turn-in off the street, signs should clearly point the way Mrs. Smith should proceed. Legible signs should likewise direct where she should park her car, which one is the correct front door and where she should go now. While I see many top shops with great signage outside, I seldom see any with great signage inside. While Mrs. Smith waits for her estimate, rather than have her thumb through old magazines or watch a scary video of someone’s badly wrecked car getting pulled out on your frame machine, tell her exactly why she should choose your shop on a big wall sign. On a large, easy-to-read-from-acrossthe-room, professionally done sign, tell the Smiths why you’re great. My ideal sign would feature

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your colorful logo along with a one-sentence quote from the ownership promising to do a superior job. The sign would also bullet point all the swell things about your shop: technician training, latest equipment, insurance relationships, years in business, lifetime warranty, etc. Having seen this done several times in very cool shops across the country, I’m convinced it’s a powerful closing tool. Mrs. Smith is already in your waiting room; in addition to a warm welcome, a clean place to sit and fresh beverages and snacks, take the opportunity while she’s captive to clearly list in writing all the reasons she should choose you. She’ll read it – I promise. In addition to the inside signs telling your story, you could reiterate the same strengths on a

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»| Clark’s Corner |« handout sheet that you could staple to the Smiths’ estimate – in the unlikely event they forgot some of your wonderful qualities. Far too many shops don’t close well. They write a complete sheet, smile when the Smiths arrive and thank them for the chance to bid the repair of their vehicle. Top shops ask for the sale every time, in no uncertain terms. Like what? Like, “Mrs. Smith, we would like to repair your car, and our trained techs, state-of-the-art equipment and stellar local reputation will make the process seamless for you. May I schedule your car for repair?” Good closers ask for the work in plain English, every time. The worst that can happen is she says no. If she says why not, it’s your chance to overcome her objections.

Closing the Deal » Among the many statistics in the Industry Profile in the May 2013 issue of BodyShop Business was close rate, also called capture ratio or batting average. It’s the percentage of estimates written that turn into repair orders. The formula is simple: number of ROs divided by number of estimates for a set time period. According to the shops that responded to the Industry Profile survey, the average close rate is 62 percent. The survey also indicated that the average shop fixes 13 vehicles each week. A 62 percent close rate means they wrote 21 estimates to get those 13 jobs. That means that eight customers stood in the waiting room, shook hands with the estimator each week and had their car fixed somewhere else. Eight lost jobs per week, 49 work weeks a

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July 2013 | BodyShop Business

year and an average RO of $2,238 per the survey means that $877,296 of work walked out of the average shop. Could your shop use another three-quarters of a million dollars in work? Shops ask me all the time where I think they should advertise, but until their close rate is in the 80 percent range, I say don’t advertise for more work. Just clean up, smile, explain clearly and close the work that’s already finding your shop. BSB Mark R. Clark is the owner of Professional PBE Systems in Waterloo, Iowa; he is a well-known industry speaker and consultant. He is celebrating his 25th year as a contributing editor to BodyShop Business.

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Web Presence

Management

By Mark Claypool

Is a Penguin Hurting Your Website’s Search Ranking? ave you noticed anything strange with your website’s Google ranking lately? Has it dropped five or six positions or more? Is it perhaps no longer on the first page as it has been for awhile? If so, you can blame a penguin. That’s right – a penguin. Google’s Penguin 1 and 2, to be precise, the latest round of major changes to the search engine giant’s algorithms that determine how a site will rank.

What to Expect » Google doesn’t reveal exactly what the changes are, but they do hint what to expect. Keywords, of course, are still as important as ever. So are title tags and proper use of headers and alt image tags. But these aren’t enough anymore. Now, nationally recognized websites are starting to dominate page one over local domains. This has major implications for you, and there are some things you simply must do to fight back. Competing for Page One » At Optima Automotive, we started noticing that our clients’ sites were losing their traditionally strong rankings. Overnight, it seemed that huge, national domains like Google+, Yellowbook, Dex, Yahoo Local, Yelp, Angie’s List and others were starting to dominate the top spots on page one. If you’ve traditionally been strong on page one, you may be shocked to find you’ve 20

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been bumped a few spots, or even bumped off page one. Check it out for yourself – go to www.google.com, search the term “auto body” plus the name of your town and your two-letter state abbreviation. Be sure to look at your actual organic ranking, not the sponsored spots at the top or the Google+ map listings. If your ranking isn’t as strong as before, you’ve likely been struck by the Penguin. Replacing you in those top spots are probably the nationally recognized domains mentioned above. The big are eating the small. Even large, consolidator site

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»| Web Presence |« pages are starting to rank better when they’re doing things right. Good news for them, not so good for independents.

What You Can Do » So what can be done about it? It has now become almost impossible to bump those national domains out of place. Unless Google makes a major algorithm shift in the future, you’re going to have to take different measures to be visible on page one. These include: 䡲 Claim your Google+ page. It’s a MUST. Verify your business and location with Google, then start posting on your Google+ page at least once every 72 hours. Promote it to customers, ask them to +1 you and give you positive reviews on Google.

July 2013 | BodyShop Business

Google loves it when you use their stuff! Read the article, “How to Make a Google+ Page For Your Business,” in the November 2012 issue of BodyShop Business. 䡲 Participate in search engine marketing, also known as payper-click advertising. This will ensure you’ll be on page one. It costs some money to do it, but what is it costing you to not be on page one? Read the article, “Using SEO to Score Page One on Google,” in the February 2013 issue of BodyShop Business. 䡲 Claim your free business listings on consumer pages like Yellowbook, Dex, Yelp, CitySearch, Manta, Yahoo Local, etc. Be in control of your listings, post photos and make sure all your contact information is

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exactly the same on each and every one. 䡲 Consider becoming a sponsor on some consumer sites. It can be expensive, but sponsored listings show up first, plain and simple. It’s how the game is played. So think about your visibility, or lack thereof, when you weigh whether or not to become a sponsor. 䡲 Consider becoming a member of Angie’s List. Their strong website is really starting to show up in search rankings. 䡲 Become a member of the Better Business Bureau (BBB). Make sure your shop’s information on the BBB webpage is showing up correctly and consistently with all of your other listings. 䡲 Rock your participation in

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»| Web Presence |« social media. Reach people this way with your brand and they will think of you first rather than searching for shops via other means. Will this help move your own rankings higher? Not likely, certainly not with how Google is structured at the present time. Effective participation with Google+ can, however. Overall, taking control of your local consumer listings will ensure that your information is correct. People will hopefully find you that way. That’s not what you wanted to hear, most likely, but it is the reality of search in 2013.

Darn Penguins » Bet you never thought you would have to go to battle with a penguin, huh? They

July 2013 | BodyShop Business

seem like such harmless creatures. But in this case, the penguin is taking a bite out of your business. So claim your business listings on consumer sites, consider advertising in them, claim your Google+ page and start using it. Most importantly, build relationships with vendors, 20 Groups, chambers of commerce and BBBs and get them all to link to you – and you to them. These “backlinks” are the best thing you can do on your own and will help you keep the little black and white creatures at bay. BSB BSB Contributing Editor Mark Claypool has more than 30 years of experience in the fields of workforce development, business/education partnerships,

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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. Claypool’s work history includes stints at Metro Paint Supplies, VeriFacts Automotive, the National Auto Body Council (NABC), the I-CAR Education Foundation and SkillsUSA. He is the founder of Mentors At Work and co-founder of the Collision Industry Foundation. He served, on a volunteer basis, as the SkillsUSA World Team Leader for the WorldSkills Championships from 2003 to 2011.

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Tech

Tips

By Karl Kirschenman and Jeff Webster

Collision Avoidance Sensors, Modules, Cameras…Oh My! ollision avoidance used to mean being watchful and reacting quickly in order to brake or steer out of harm’s way. These days, some vehicles also “watch,” and when they detect an impending crash, they can automatically avoid or minimize damage by reacting faster than the driver can. The National Highway Traffic Safety Adminstration recommends that all new cars include collision avoidance systems, and as these systems become more common, detailed information for removing and replacing components and/or reprogramming them will be a necessity. Of course, vehicle manufacturers all have their own systems, requiring specific procedures for every make and model you see in your shop. Collision avoidance encompasses many technologies, including automatic braking, self-steering, drowsiness alarms, pedestrian impact detection and blind spot scanning. How can you possibly understand these complex systems without the diagrams and information generated by each OE? Below – as an example only – is a brief sampling of OE collision avoidance information for some Cadillac and Mercedes-Benz models. These may not be the complete articles or procedures.

Service Procedure » Always refer to ALLDATA Collision S3500 for safety procedures, identification of 26

July 2013 | BodyShop Business

material types, recommended refinish materials, removal and installation procedures. Always refer to the manufacturer for questions relating to applicable or non-applicable warranty repair information.

Example One » 2012 Cadillac CTS Wagon AWD: Pedestrian impact detection module replacement Preliminary procedure: Remove the instrument panel compartment assembly.

Example Two » 2012 Mercedes-Benz E 350 Coupe (model 207.359): Remove/install Distronic Sensor (DTR) (distance sensor) Refer to information on preventing damage to electronic components due to electrostatic discharge. 1. Switch off ignition. 2. Remove radiator grille.

Figure 2

Figure 1

Parts required 1. Pedestrian impact detection module bolt/screw (Qty 3). Tighten to 10 Nm (89 lb. in.) (1) (Figure 1). 2. Pedestrian impact detection module (2) (Figure 1). Caution: Refer to Fastener Caution.

Repair Procedure 1. Disconnect the electrical connectors. 2. Refer to Control Module References for programming and setup procedures.

1 Electrical Connector 2 Bracket 3 Nut

3. Unlock and detach electrical connector (1) on Distronic electric controller unit (A89) (Figure 2). 4. Remove Distronic electric controller unit (A89) from bracket (2) by unscrewing nuts (3) (Figure 2). 5. Install in the reverse order. 6. Perform initialization of Distronic electric controller unit (A89) with Star Diagnosis. Initialization is necessary after: 䡲 Replacement of or detachment/ attachment of the Distronic electric controller unit (A89). 䡲 Replacement of steering column tube module control unit (N80). 䡲 Replacement of yaw rate sensor for lateral and longitudinal acceleration (B24/15).

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»| Tech Tips |« 䡲 Mechanical damage to the Distronic electric controller unit (A89). 䡲 Accident repairs in front end. 䡲 Alterations on the camber, track width, caster or of the level of the vehicle at the front or rear axle. Connect Star Diagnosis and read out fault memory. 7. Perform calibration with Star Diagnosis when replacing the Distronic electric controller unit (A89). 8. Read out fault memory with Star Diagnosis and erase if necessary.

Example Three » 2012 MercedesBenz E 350 Coupe (model 207.3): Remove/install sensors for Blind Spot Assist • A86/2b1: Right outer radar sensor, rear bumper • A86/2b4: Left outer radar sensor, rear bumper Refer to information on preventing damage to electronic components due to electrostatic discharge. 1. Lift vehicle on lifting platform. Danger! Risk of death caused by vehicle slipping/ toppling off the lifting platform. Align vehicle between columns of vehicle lift and position four support plates at lift support points specified by vehicle manufacturer. 2. Remove cover (1) (Figure 3) when

July 2013 | BodyShop Business

removing the outer right radar sensor on the rear bumper (A86/2b1) with engine 271, 651.

Parts Required 1. Rear object alarm module nut (Qty 3). Tighten to 2 Nm (18 lb. in.). 2. Rear object alarm module. Caution: Refer to Fastener Caution.

Procedure

Figure 3

1 Cover 2 Electrical Connector 3 Bracket

3. Detach electrical connector (2) from outer right radar sensor on rear bumper (A86/2b1) or outer left radar sensor on rear bumper (A86/2b4) (Figure 3). 4. Extend outer right radar sensor on rear bumper (A86/2b1) or outer left radar sensor on rear bumper (A86/2b4) out of bracket (3) and remove (Figure 3). 5. Install in reverse order.

Example Four » 2012 Cadillac Truck Escalade/ESV AWD: Rear object alarm control module replacement Preliminary Procedure: Remove the front passenger bucket seat.

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1. Position carpet in order to access module. 2. Disconnect the electrical connector. 3. Reprogram the rear object alarm module after replacement. Refer to Control Module References. BSB Karl Kirschenman, ALLDATA collision product manager, holds a bachelor of science in communication. He has more than 10 years of experience in the collision industry. © 2013 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. Cadillac, CTS and Escalade are registered trademarks of General Motors. Mercedes-Benz and E350 are registered trademarks of Daimler AG and Mercedes-Benz USA. All other marks are the property of their respective holders.

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Track Talk Education, Hard Work Pays Off for Rev Racing’s Sickler Someone once said, “It’s not where you start, but where you finish.” Considering the path to his current career in motorsports, that person could have been talking about 2003 NASCAR Technical Institute (NASCAR Tech) graduate Jonathan Sickler. For the last two years, Sickler has been an integral part of Rev Racing where he serves as a finish fabricator and drives the team rig that hauls the racecars. All those miles on the road and hours in the garage could take a toll on a person, but not Sickler. “If you’re passionate about

what you do and enjoy it, it doesn’t seem like work,” says Sickler. Even if it doesn’t seem like work, the time and effort Sickler and his team put in has been well worth it. Last November, the No. 6 Rev Racing Toyota team driven by Kyle Larson captured the K&N Pro Series East crown, marking the first NASCAR touring championship for Rev Racing and NASCAR’s Drive for Diversity initiative. More than a decade ago, when Sickler was installing car stereos in Pinellas Park, Fla., NASCAR championship trophies were not exactly top of

mind. However, as he worked more with cars, he developed a passion for them, even beyond the stereo component. Taking on the same tasks, day after day, he was ready for a change, and knew that expanding his knowledge of cars was the first step. At 25, Sickler packed up his belongings, drove across the country and enrolled at the Universal Technical Institute (UTI) Avondale, Ariz., campus and completed the 51-week Core Automotive Program. With a solid mechanical foundation, Sickler was ready for more. “Race City, USA” and NASCAR Technical Institute (NASCAR Tech) was his next pit stop. “The curriculum was really strong, and I was at the age

Jonathan Sickler helped Rev Racing capture the 2012 K&N Pro Series East crown. A UTI and NASCAR Tech graduate, Sickler says education and hands-on automotive experience is the differentiator shops and race teams look for when hiring.

Follow NASCAR Performance on Twitter and Facebook www.twitter.com/NASCARauto ■ www.facebook.com/NASCARPerformance

where I was mature enough to understand what I wanted to do and how I was going to get there,” explains Sickler. “NASCAR Tech provided a platform for me to accomplish my goals.” At 27, Sickler was not deterred from reaching the pinnacle of the racing world. He proves that no matter your age, a career in the automotive industry is possible. “Shops and race teams are looking for qualified, skilled and passionate individuals,” says John Dodson, community/NASCAR team relations director at NASCAR Tech. “Those are the types of graduates we turn out, and they get the job done.” Sickler is talented and motivated, but notes that without the education he received at UTI and NASCAR Tech, he would not be where he is today. “You have to have an education in automotive technology to get into racing,” says Sickler. “It’s really competitive and hands-on experience is the differentiator race teams are looking for.” Sickler realizes how fortunate he is to be in this position and wants others to know that all things are possible. “Whatever you put into life, you will to get out of it,” he says. “If you work hard and believe in what you’re trying to accomplish, you can do it.” For more information about NASCAR Tech’s 10 years of starting careers, visit www.uti.edu/partners/nascar. By: Kimberly Hyde, NASCAR

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COVER STORY

on More and more shops are considering OE ď&#x20AC;ľ to stand out from the competition.

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COVER STORY » OE Certification

By Curt Harler

f you’ve got it, flaunt it. What better for a body shop to flaunt than a certificate from an auto manufacturer saying the shop restores its models to manufacturer’s specs? Smart shops get certified so they stand out from the competition and offer customers concerned about shoddy repairs a measure of comfort knowing a shop is third-party “certified.”

A Certain Cachet » There is a cachet to certification – but since the programs are not something many consumers think about after a collision, it’s up to both body shops and OEMs to promote the programs’ benefits. Consumer awareness tends to be higher for repair certifications for top-end lines. However, for any shop, a certification – or multiple certifications – makes a great selling point. The programs run from a simple “Pay a fee and buy our parts and you are certified” to more stringent programs such as BMW, Audi and Mercedes-Benz where equipment and training are required. In some cases, I-CAR Gold qualifies a shop. Other OEMs require in-house

ertification certification as way



training and equipment. No OEM hands out certifications like candy on Halloween – they must be earned. “It isn’t cheap, but it’s no big pain,” says Matt Dewalt, AAM, vice president of Scott’s Collision Center in Stroudsburg, Pa., and Scott’s Auto Service, Easton, Pa. He runs certification for both shops. www.bodyshopbusiness.com 33

COVER STORY » OE Certification “We’ve always strived to be a leader in our market and offer every possible benefit to our customers,” says Brad Zara of Zara’s Collision Center, Springfield, Ill. “OE certifications are simply an extension of this benefit.” An independent shop, Zara’s has held Honda/Acura shop recognition for

three years and just recently gained Chrysler certification. GW & Son Auto Body in Oklahoma City, Okla., has been a certified shop since 2005. Gary Wano, Jr., executive vice president, says he was pushed to certification by DRP concessions. “I was fed up with competing on the basis of repair price,” he says. “We

began operating as GW & Son in 1985 with a tag line: Quality has its price, price alone has no quality. Then we find ourselves in a bidding war for work. It didn’t take us long to understand we wanted to compete based on all-over merit, and the OE-certified programs were the tools we used to legitimize this tag line.” Today, GW & Son trumpets the fact that it’s Oklahoma City’s only body shop certified by Jaguar, Volvo, Mercedes-Benz and aluminum body. And it’s currently pursuing BMW training. “I believe that we are still in a stage where consumers assume that a reputable shop is going to be qualified to repair their vehicle,” says Zara. He says extremely high-end vehicles requiring specialized equipment are the exception. “Certification on what I will call ‘average vehicle makes’ may not be sought by consumers at this point.” Dewalt of Scott’s Collision’s decision was strictly business. “Certification adds more credibility to the business,” he says. The shop first got VW certified, then added Nissan, Chrysler and the aluminum Corvette Z06.

High Price » There is a price. Wano puts the average cost of a four-day factory certification at $20,000 when travel, per diem and lost production are figured in to the equation. Some training programs last two weeks. “We have invested in one technician who traveled to Stuttgart, Germany, twice for Tier-1 aluminum training,” Wano says. All told, his multiple OEM program trainings equate to hundreds of thousands of dollars. Specialized tools often are required. “We have around $300,000 of equipment purchased,” he adds. Oklahoma City is not the biggest luxury vehicle market. Wano says the cost associated with his level of commitment can be prohibitive when most of the big producers work with insurers that have implemented cost saving rules for these repairers to live by. “I repair roughly 18 percent less autos with a 13.4 percent increase in revenues compared to my stats while 34

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COVER STORY » OE Certification

“There is a lot of money wrapped up in certification, but the return is great.” — Gary Wano, Jr., executive vice president, GW & Son Auto Body

 on the DRP programs,” he says. These numbers are before completing training for the BMW brand. Due to the limited number of highend vehicles in his market, too, Zara chose not to pursue certification in BMW, Audi, Jag, etc. “They are typically very large investments,” he says. Adds Wano, “There is a lot of money wrapped up in certification, but the return is great.”

July 2013 | BodyShop Business

Dewalt agrees. His first certification, from VW, cost about $6,000 and will run about $3,000 for renewal. Nissan cost him $2,250 and Chrysler about $1,000 with a similar annual renewal. “The biggest time and financial requirements of the Honda ProFirst recognition and Chrysler certifications happened to be one that we have maintained for a long time: I-CAR Gold Class,” Zara says. Aside from

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that, there was no other cost for Honda certification. Chrysler’s was more rigorous with requirement of an on-site, in-depth inspection. “I believe it was a $2,900 one-time fee that we were able to cover with parts rebates,” Zara continues. “The parts rebates are certainly measurable. However, the generation of business is not as clear at this point since our certifications are just a part of a much larger marketing initiative.”

In It to Win It » Competition is especially keen in the upscale market. “Shops have to be in it to win it,” says John Donito, manager of aftersales field support for Volvo, Rockleigh, N.J. “The luxury customer is a completely different cat. We have to be sure both the dealer and outside shop are what they say they are… that they have the commitment to facilities, training and quality.”

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COVER STORY » OE Certification

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

For that reason, BMW restricts certification to dealerships. “That is a legal restriction, by contract,” explains Marcos Ehmann, wholesale manager for BMW. “We require a minimum of 51 percent ownership.” Likewise, Toyota does not certify nonToyota dealership shops, according to Jerry Raskind, wholesale parts manager for Toyota. Hyundai doesn’t have a body shop certification program just yet. However, look for the company to have something to talk about potentially in late summer 2013. Honda kicked off its “Body Shop Recognition” program in June 2009, recognizing shops that used Collision Link and that were top performers for their respective paint companies. That program ended on April 30, 2012. The current ProFirst recognition (not certification) program began Oct. 1, 2012. “It is what we consider the ‘next level,’”

says Gary Ledoux, asOnce a shop becomes “certified” by sistant naan automaker, it helps to advertise tional this fact to discerning consumers manager so they know where to take their for Amerivehicles for repairs. can Honda Motor Co.’s Collision Parts and Service Marketing. In Honda’s original program, a shop (dealerowned or independent) had to be sponsored by a dealer parts department. That was eliminated with the new ProFirst program. “Now, any shop can register simply by going to ProFirst.honda.com,” Ledoux says. “Continuing with Collision Link made sense because of all the inherent benefits,” he explains. “As

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our Honda and Acura products have become more complex and sophisticated, not only in the way they are built but also in the construction materials used, we knew we needed collision technicians who were versed in the new technologies and who could make a proper repair. Thus, we turned to I-CAR.” Other OEMs have gone the same route. With less than 1 percent of the U.S. market, Volvo can’t afford to do inhouse certification of shops. Rather, they work with I-CAR. “They are the industry gold standard,” Donito notes. VW also requires specific I-CAR courses for its program. Scott’s Collision is a couple of courses away from achieving I-CAR Gold. Both Nissan and Chrysler will recognize those courses, Dewalt notes. In some cases, an OEM will certify a shop that is just short of I-CAR Gold as long as they achieve it within a

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

COVER STORY » OE Certification

A plaque or certificate typically comes with certification, which body shops can proudly display in their reception areas.

year. However, a shop that is not well on its way will not get any slack. GW & Son is not I-CAR. Wano fig-

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ures they put enough resources behind OEM programs. “I had wanted to do things with I-CAR,” he says. “But the manufacturers we have do not require it or recognize I-CAR as part of their certification. So I see no need to get more outside training.” Volvo certifies both on-site Volvo repairs and independents. “A shop does not need an ownership relationship, but normally there is a partnership there,” Donito says. The body shop will purchase parts through the Volvo retailer, and the Volvo mechanics will work on things like resetting service lights or ABS lights. Regardless of whether the shop is tied to a Volvo dealership or an independent, the process is the same. The local Volvo retailer supplies documentation for the body shop to fill out. That information is evaluated at Volvo headquarters in New Jersey, with review by a local representative.

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COVER STORY » OE Certification

“We have gotten a few jobs due to our certifications. However, the immediate benefit has been more in the area of expanded price matching on parts and parts rebates.” — Brad Zara, Zara’s Collision Center

 While fit and finish are important, that is not the whole game. Volvo evaluates body shops for parking, identification and safety. Keep in mind that these customers are an upscale group. “The shop doesn’t have to look like a Volvo retailer, but it has to be com-

July 2013 | BodyShop Business

mensurate with Volvo standards,” Donito says. Some OEMs, including BMW, will not certify a body shop that is not part of a dealership. Rather, they will promote the shop as “BMW trained.” Payback on all these programs is

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good. For instance, Honda’s Collision Link uses a VIN-scrubbing technology, which helps ensure that the shop gets the right part the first time, saving time and trouble. ProFirst recognition is open to dealer-owned shops and independents – as long as the independent meets program requirements. These include use of OEConnection’s CollisionLink and status as I-CAR Gold Class. “In addition, someone in the shop must have completed the Honda/Acura-specific I-CAR class, HON01,” Ledoux says. Having I-CAR administer things saves Honda money, too. Thus, for shops and dealerships, success is a two-way street. “Thanks be to God, the relationship between our sponsoring dealerships is one of incredible mutual respect,” Wano says.

Customers’ View » Many OEMs do not have much interaction with cus-

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COVER STORY » OE Certification tomers when vehicles are repaired at independent shops. But the shop owners who are in certification programs appreciate the cachet. The overriding benefit to customers is peace of mind. They can be sure that, as far as their insurance company allows, OE parts have been used and that the vehicle is

repaired to OEM safety and technical standards. “This ensures that the vehicle structural integrity is maintained and safety systems are repaired to Volvo standards,” Donito says. Says Ledoux, “CollisionLink facilitates our conquest program, which allows greater use of Honda Genuine

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July 2013 | BodyShop Business

parts. Having a shop that is I-CAR Gold Class means that the technicians are well-trained. We feel this will result in a better repair and a safe repair for Honda customers.” Honda dealers win because, with CollisionLink, they sell more Honda/Acura genuine parts and it saves them some administrative time. Shops get the right parts the first time and get to use more OE parts. “It works for the consumer because they get a higher degree of OE parts, and we believe they are getting a better, safer repair from an I-CAR trained shop,” Ledoux says. “And it works for American Honda because we feel our customers will be getting a better repair at a ProFirst shop.” Drive out of a Volvo-certified body shop and you get a one-year, unlimited mileage warranty for all parts installed. That warranty runs in tandem with the body shop’s own fit and finish policies. However, the associated Volvo shop does not indemnify the body shop work, Donito says. The customer must work with the body shop on any concerns. Wano plays up his shop atmosphere. “It is not uncommon for us to offer a tour to our high-end customer base,” he says. During this tour, the customer will see multiple high-end cars in various stages of repair in a clean and orderly facility. “We lose very few customers, especially when they ask a competing facility for a similar tour,” Wano says. Insurers are a different animal. Someone must resolve questions with the customer’s insurance policies, several OEMs say. “You have to deal with insurance company micro-management with salvaged or used parts,” Donito says. “The best of intentions can be laid to the side.” While he’s enthusiastic about the ROI on his certifications, Wano notes there often are insurance issues. “You won’t be working at the prevailing price,” he warns shop owners considering certification. “A shop that is part of a DRP program will have a difficult row to hoe. You’re not going to make

WinYour Boss a

TriptoVegas!

Nominate them now for the prestigious BodyShop Business Collision Repair Shop Executive of the Year award, and if they win, they’ll get an expenses-paid trip to Las Vegas…not to mention a spiffy award plaque and their name among 30 years’ worth of past collision repair legends. The award is given to a true collision repair “visionary,” someone who has experienced great success through innovative thinking, overcoming challenges and persevering.

Any person employed in a collision repair shop as a manager or owner is eligible. The shop can be independent, a dealership or franchise. The winner and a guest will receive an expenses-paid trip to the International Autobody Congress & Exposition (NACE) Oct. 17, 2013 in Las Vegas, where they will be presented with the award. To nominate, visit www.bodyshopbusiness/execoftheyear

COVER STORY » OE Certification the money that you want to make to recover your investment. You might have to think outside the box a bit. “GW & Son KPIs do not fit within the severity expectations of the carrier, yet the carrier pays the bill. We simply repair the car per OEM requirements. That documentation and customer support, and the seven-plus years of experience in the program, lend to our credibility.” Wano says that some insurance companies, recognizing that their customer pays a hefty premium to insure a Jag or Volvo, have no problem using a certified shop. “Those insurers want to be sure their customer base is taken care of,” he says. Other companies, he says ruefully, are not as certificationfriendly. “We’ve had feathers ruffled on both sides.” Since at least three of GW & Son’s OEM programs specifically forbid use of used parts, tensions can mount.

“In my opinion, anyone looking to become certified within the high-end luxury brands simply needs to understand that your customer is the auto owner, and your repair process is driven by the OEM. There is no room monetarily to stay OE-certified compliant while serving within the DRP environment,” Wano says. “You can’t serve both masters. Margins get really shrunk. Either you are in a DRP program or you are not.” Zara, who is a DRP shop for a number of insurance companies, sees it a bit differently. “I feel that our certifications are just one more thing that can set us apart from the other shops in our market as well as other providers on these DRP programs that we compete with,” he says. “We have gotten a few jobs due to our certifications. However, the immediate benefit has been more in the area of

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July 2013 | BodyShop Business

expanded price matching on parts and parts rebates.” Many OEMs put the need for dealer replacement parts right into the customer’s hands. “The structural integrity of your Volvo depends on every body part used,” the company’s flier to customers says. “It is important to insist on Volvo genuine replacement parts whenever possible.” Support like that makes it easier for a certified shop to support clients who want cars fixed to the manufacturer’s specifications. While Zara says he has not seen any specific increase in insurance business due to their certifications, “We have gotten some nice comments on social media and cards in the mail following the announcements of our certification achievements.”

Other Considerations » Some certifications are easier to obtain than others…although to the customer, they all look good hanging on the wall. Nissan and Chrysler, for instance, are easy compared to BMW. That is not to say the former certifications are flimsy or not worthwhile. Rather, they might be better entry points for a shop striving for certification before taking the plunge into a more expensive program. There is another consideration, too. Can a shop afford to have certified technicians working on a Ford pickup? On the other hand, can the shop afford to ignore a long-standing good customer’s “other” vehicle? “Training represents a great deal of cost,” Wano says. “I can’t afford to have a tech working on something else.” GW & Son answered that question by opening a second shop to complement the 32,000-square-foot home operation. Thus, ROI matters. “I am not a 503c,” Wano states. “We are a forprofit corporation.” Due to the OEM repair requirements, he has found his estimate line count has increased, as well as the rate of repair. He credits this to the OEM procedures and a customer-only focus. “We only have State Farm as a referral source because they under-

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COVER STORY » OE Certification

Nissan Volvo Toyota Mercedes BMW Honda Chrysler Volkswagen Jaguar

X X

X X X X X X X X X X X X X X X X X X X X X X

X X

X X X X X

stand and are willing to pay what it takes,” he notes. “We have found our repair remittance is justified and supported.” No matter the program, manufacturers require regular recertification. Volvo is typical with recertification required every two years. Over time, individual shops and OEMs get a feel for the tangible and intangible benefits of re-signing. “We can measure the number of shops on the program and the attendant parts sales… both of which are headed up,” Ledoux says. They also measure the number of hits on their shop locator site (collision.honda.com), which reveals how many consumers looked for a recognized body shop. “This is also headed up,” Ledoux says. Does that mean business? While saying it is difficult if not impossible to measure, Ledoux says they know anecdotally that programs build traffic. “Shop managers have told us that if a Honda owner comes to their shop after seeing them on the ProFirst shop locator site, chances are really good that they will write the estimate and sell the job because the customer feels that their car will be fixed in a complete and safe manner.” Circle 48 for Reader Service

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Plaque Free Parts Info Access Free Repair Info Access Shop Locator on OEM Site Roadside Assistance Marketing Material

X X X

X X

X X X X X

X X X

X X X X

X X X X X X X X X X X X X X X X

X X

Benefits

I-CAR Training Other Specialized Training Dealer-Sponsorship (If Independent) Approved Equipment Approved Refinish Products Approved Software Required Parts Usage Regular Audit Process Open to Dealers Open to Independents Facility Appearance Customer Relations Policy

Requirements

OEM Certification Matrix

Although Scott’s has been Nissan certified for less than six months, Dewalt was recently surprised by getting at least four jobs as a direct result of the Nissan website referral program. He admits he didn’t expect a dime’s worth of work from the VW certification – the closest VW dealer is 45 minutes away. “But right away we got three referrals, including a couple from out of state,” Dewalt says. While New Jersey is just across the Delaware, jobs came from New York City. Wano says Mercedes-Benz USA does a great job informing the owner about the pre-engineered crash ability of their product. “To restore this crash resistance, the damaged Mercedes product needs to be repaired by a trained and equipped facility,” he notes. It is that kind of OEM support that keeps shops coming back for recertification. “We will continue to incorporate our certifications into our marketing to bring more awareness to consumers,” Zara concludes. BSB Curt Harler is a Cleveland-based freelancer specializing in the auto, technology and environmental areas. He can be reached at curt@curtharler.com.

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TECHNICAL

Spraybooth How high should the exhaust stack be above the building roof?

Ever wonder about some of the technology on spraybooths? Does it get your head spinning like a reverse incline fan? Here are the answers to your questions. 50

July 2013 | BodyShop Business

Answer provided by A-Frame Spray Booths: The exhaust stack height is controlled by local code. In general, the stack should extend a minimum of three feet above the peak of the building roof. In some areas, the stack is required to be one and half times the building height. Also, itâ&#x20AC;&#x2122;s common for the stack to be required to terminate a minimum distance from the property boundary. Check local code.

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TECHNICAL » Spraybooth Q&A How do you know when intake or exhaust filters should be changed? Answer provided by Col-Met Auto Direct: Sounds simple enough, right? Not so much. There are many variables to consider when asking this question, such as: 䡲 Environment: Is my shop very clean, moderately clean or on the dirty side? 䡲 Volume: How many vehicles am I painting per day/week/month? 䡲 Spray product: What am I spraying inside of my booth? 䡲 Pressurization: Is my booth pressurized with an air make-up unit attached, or is it non-pressurized? You could probably come up with even more variables, but these are the main ones to consider. Let’s also separate the two types of filters inside the booth: intake filters and exhaust filters. Booth manufacturers spend a lot of care in the design and functionality of the airflow to be productive and within the required guidelines. It’s important to use the recommended OEM filtration, which is generally made available by the company that sold you the booth. Having said that, there are a few generic guidelines you can follow:

䡲 Intake filters: It’s fairly easy to see the inside of the intake filter. A good rule of thumb is to replace this filter when the inside becomes dirty or discolored. In an average shop that’s fairly clean, this can be done every two to four months or about every second to third time you replace your exhaust filters. 䡲 Exhaust filters: The bad news is that you can’t really see the inside of an exhaust filter. The good news is that most paint booths come with a handy device called a manometer. This device has a visual indicator that displays the “load” on your exhaust filters. Once the manometer has been properly balanced prior to using the booth, it can show you the progression of the contaminants building up or “loading” the filters. A good rule of thumb is that you want to change these filters when the load reaches about a half-inch. In an average “one-car-a-day” shop, this can be done typically every two to four weeks.

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TECHNICAL » Spraybooth Q&A How does an insulated booth differ from a single-wall unit? Answer provided by UniCure: A double-wall booth is constructed of two layers of sheet metal with a layer of insulation in between. The insulation is usually a rockwool or similar product. A single-wall booth is constructed of a single layer of sheet metal at a heavier gauge and doesn’t have a

layer of insulation. The main difference between a double-wall booth and a single-wall booth is price and cosmetics. The smooth exterior of a double-wall booth looks great, but you will usually pay a premium for those looks. There are some additional features such as inside acces-

sible light fixtures, but those can be added to a single-wall booth as well. When it comes to function, there is little advantage to a double-wall booth over a single-wall. The air makeup and mechanical systems can be exactly the same on either style of cabin. Both units can have spray and bake capabilities with the same performance. A single-wall booth can also have the same efficiency as a double-wall. The insulated panels of a double-wall do not retain significantly more heat than non-insulated panels. Air in a spraybooth is moving so fast that the heat transfer rate from the air to the booth walls is low. The greater benefit to retaining heat and increasing metal temperatures of the painted surface during bake mode is the proper pressure in the cabin. This is why it’s more important to focus on the air flow and control systems of a spraybooth instead of the cabin style. As a spraybooth manufacturer with U.S.-made single-wall and double-wall booths, we offer both products, but the single-wall booth is the workhorse of the industry.

Where should the lights be located? What type of bulbs are best? Answer provided by Global Finishing Solutions: Proper lighting is absolutely crucial to achieving a perfect finish. You want to ensure that you have enough overlap of all the light generated in the cabin so that no matter where the painter is standing, the shadows that would be created by the light directly behind them is eliminated by the other lights in the booth. The best arrangement for lights in a spraybooth is a combination of angled lights in the ceiling and vertical lights in the sidewalls. The lights in the ceiling illuminate the top surfaces of the vehicle, while the vertical sidewall lights illuminate the sides and lower areas. The reason we recommend Bulbs continued on pg. 56 54

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TECHNICAL » Spraybooth Q&A Bulbs continued from pg. 54 vertical lights in the walls instead of horizontal is that they provide the greatest spread of light across the sides of the vehicle from top to bottom. Horizontally-oriented lights concentrate on the center of the vehicle, but don’t spread enough light above and below to ensure complete illumination. Vertically-oriented lights provide greater coverage of lower surfaces, and achieve better overlap to eliminate shadows as the painter passes in front of them. We tend to rely primarily on T-8 color-corrected fluorescent light tubes for the best possible balance between energy-efficiency and light spread. T-12 light tubes are not nearly as energy-efficient as their T-8 counterparts and don’t produce as much light, and so are generally accepted as inferior light tubes for spraybooth applications. T-5 tubes tend to produce a more “concentrated” pattern of light that is ideal at greater distances, but when placed inside a spraybooth, we’ve found that the distance between the walls and the vehicle is not sufficient to get the optimum spread of light. T-8 tubes hit the “sweet spot” of providing a great spread of color-corrected light at the perfect distance and consume little energy.

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What fuel gas pressure/volume does your air replacement need? Answer provided by Spray-Tech: The type of fuel depends on what’s available. In most metropolitan areas, natural gas is the fuel of choice because of availability. When adding air makeup to a building, additional load becomes necessary. Piping from the street and upsizing the meter may become additional expenses. However, in most metro areas, natural gas is the most economical fuel choice. In rural areas, connecting to natural gas may be cost prohibitive or not even an option. Liquefied petroleum gas (LPG) or propane work best, and a great supplier can be an asset. When using LPG in colder climates, use a vaporizer to prevent liquid propane from reaching the burner manifold in the air makeup unit. Most air makeup units work between 7 and 21 inches of water column pressure using natural gas and 11 inches using propane. Pressure has an impact on the operating characteristics of the air makeup units’ burner manifolds, and usually a dynamic pressure reading is used to determine low and high fire settings to provide a clean burning system. A system’s volume will be determined by the air makeup’s BTUH rating. Volume is the amount of cubic feet of fuel delivered to the air makeup to generate the temperature rise desired. This will vary according to the system’s location and the nominal temperature recordings for a calendar year in that particular location. The correct volume delivered to a system is impacted by the fuel’s piping system and must be calculated to assure proper fuel capacity and delivery. A licensed professional contractor, architect or propane fuel supplier can make these calculations and assure proper volume delivery.

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TECHNICAL » Spraybooth Q&A How many different types of fans are there for spraybooths? Answer provided by Garmat: Fan selection is crucial to spraybooth performance. The design differences have a major impact on the stability and consistency of air flow, the useful life of the filter, and the long-term durability of the motor and bearings. Axial fans are designed to move high volumes of air. Tube axial fans are the typical axial fan designs used in spraybooth applications. They’re generally chosen for their low price point, not necessarily for their effectiveness. They’re sensitive to changes in static pressure, or the resistance to air movement. As filters load, the capacity of the fan diminishes quickly. Centrifugal fans accelerate air radically by changing the direction of the air flow. They’re quiet, reliable and capable of operating over a wide range of conditions. There are several types, but the three most efficient designs include forward curve, reverse incline and airfoil reverse incline fans. Forward curve fans are the most efficient for a given set of conditions, such as HP, size and initial static pressure. Prone to collecting overspray, these fans are best used on the supply

side and are not recommended for use in exhaust applications. The reverse incline fan uses blades that curve against the direction of the fan wheel. The blade’s reverse direction creates a vacuum of air that surrounds the blades, reducing overspray buildup. These fans are highly resistant to static pressure, and provide more

If I buy a brand-new booth, will I have to retrofit it for waterborne? Answer provided by Accudraft: It depends. Be aware of what you’re buying because all booths are not the same. While doing research is great, nothing beats talking to an experienced and qualified salesperson. They should be able to point out the differences and benefits for each model the booth manufacturer offers and whether a model is waterborne ready. The salesperson will also be able to speak intelligently about the overall cost per model, which is where most decisions will be swayed one way or the other. Many manufacturers offer out-ofthe-box booths that are ready for waterborne paint. Some are high-powered downdraft booths with extra large air

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consistent air flow as the filters load. The airfoil reverse incline fan is the most efficient of all the centrifugal fan designs for exhausting air. The airfoil design of the blade allows the fan to run at a higher speed more efficiently, and with less noise, than the typical reverse incline, while still offering the benefits of the reverse incline fan.

makeup systems, while others come with auxiliary air systems such as air jets or ceiling fans already installed. If you’re looking for waterborne capability now, make sure the system is one of the latter. High-powered downdrafts dry waterborne paint quickly and maintain the cleanest environment possible by maintaining the downdraft air envelope and pulling any contaminants downward. Auxiliary air movement systems dry waterborne paint the fastest, but must be maintained and kept clean so as not to stir up dirt or debris. Both offer great results and should be discussed with your paint professionals and the booth salesperson. There are many factors unique to each shop that may make one of the two booths discussed a better recommendation. Paint companies are continually improving the chemistry and technology behind the coatings and know what’s needed to dry their product. The booth should meet the paint brand’s minimum requirements for heat and air flow. Once you have matched what your paint rep or jobber is recommending for the booth model that best suits you, you should be able to make a more informed decision. Waterborne paint is the future, so keep that in mind regardless of what you buy. Make sure the system is ready for water out of the box or can be easily converted in the future. Ask what the manufacturer’s waterborne add-on system is and how much the complete system and installation is going to cost when you’re ready to switch. BSB

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BUSINESS

By Jason Stahl ver look at something so much, you fail to see any more of the fine details? Let’s say it’s an email you’re writing and you’ve gone over it five times, making sure it’s perfectly spelled and grammar checked. Yet after you send it, you notice something you missed. It’s probably because you looked at it too many times and didn’t have someone else proof it as well. It’s the same thing with a business. When you’re in it every day, all day, sometimes you lose the ability to step back and see what can be improved or what is holding the company back. That’s when you wonder if a fresh pair of eyes would do you good. According to consultant Mark Claypool, there shouldn’t be any wondering whatsoever. A disciple of Michael Gerber, who wrote The E-Myth Revisited, Claypool says one of Gerber’s observations is that 100 percent of successful small businesses bring someone in from the outside to take a different look at their business. “If you have a bunch of ‘yes men,’ they’re going to have trouble being honest with you, or you may not be open to hearing what needs to be done from them,” says Claypool. “But the observations an independent third party who has no fear of being fired might have tend to resonate with the owner because it’s a fresh pair of eyes coming in with an independent viewpoint.” Dave Dunn, managing director and co-founder of Masters Autobody School of Management, owner of Dave's Auto Body in Galesburg, Ill., and author of business management book Liquid

Hiring a

Consultant So you’re at your wit’s end with your business and need some help. Sometimes a fresh pair of eyes from a consultant is just what you need.

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BUSINESS » Hiring a Consultant

“One question to ask a consultant is, ‘If you’re so good at this, why aren’t you running your own shop?’” —Dave Dunn

Amalgam, actually discourages people from hiring his consulting group if they aren’t the right fit. “There are two basic profiles of customers we have: someone who’s desperate and if they don’t do something now, they’ll probably go out of business. The other is someone

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who is eager to do better. Those are the ones we actually help,” he says. “We discourage the desperate ones not to spend money with us – we would rather they come to class first to see if they want to be in the business. The reason is because it takes so long to get the proper philosophical alignment on-site at their place with the distractions that go on. As they’re trying to run their business and you’re trying to help them, sometimes it’s difficult to get their undivided attention. If you don’t really want to partner with us, we don’t want to fail as a consultant.”

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Experience » Any Google search for consultants will yield page after page of professionals who promise to turn your company into a mega-profitable place where people love to work. So who should you choose? In Claypool’s mind, choosing someone who has experience in your industry is a must. “It should be someone who has walked miles and miles in your shoes,” he says. “They should have real-world business experience and have had success in your industry and done things to separate themselves from their competitors.” Dunn says that a consultant should

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BUSINESS » Hiring a Consultant not just have real world experience, but also success as a business owner. “One question to ask them is, ‘If you’re so good at this, why aren’t you running your own shop?’ Consultants are often made up of a variety of profiles – someone who failed at a business, someone who sold the business (which, for the life of me, I don’t know why anyone would do that) or someone who has never been in the business. A lot of them never actually practice anything; they’re more like the armchair quarterback.” Daren Fristoe, a 24-year consultant and head of The Fristoe Group, adds that the consultant should be specific to your industry. “It should be someone who has done whatever it is that you do before – and done it for a long time.” Claypool says that people who have written for trade magazines in a particular industry or been speakers at industry trade shows tend to be recognized experts in their field and thus are good candidates to examine your business. But he advises to ask them for references before hiring them. Fristoe agrees, adding that you should also ask them for testimonials. “It’s kind of like the Angie’s List idea, where you literally can check to see if someone did what they said they were going to do,” he says.

F is for Fearless » The consultant you choose should also be fearless and unabashedly honest and not afraid to tell you “like it is” once they look through the fishbowl and observe the goings-on of your company, says Clay-

pool. Fristoe seconds that, saying that a consultant should be painfully honest with a business owner. “If something doesn’t fit, they should tell you,” he says. “They’ll say, ‘I can’t help you with this, but here’s someone who can.’ I respect that more than someone who’s trying to wing it.” Fristoe adds that the consultant, after doing an initial audit of a business’s operations, should also be honest and up-front with what the owner needs at what price point. “You may not need the gold standard product but just the bronze.”

Compensation » Fristoe explains that consulting can be done on a project basis, hourly basis or retainer. He believes it’s important that consultants offer a wide range of product offerings and price points. Claypool agrees, adding that companies should look at a wide range of consultants to find a price they’re comfortable with. “Consultants can be very expensive,” he says. “High-end ones can charge $2,500 to $5,000 a day, and small businesses typically can’t absorb that cost. My rate is $1,500 a day. And if someone says I need more than a day of your time, I tell them I will give them 40 hours of consulting for ‘X’ amount of dollars, which amounts to less than $1,500 a day, and they don’t have to do those 40 hours in succession.” Claypool is also flexible with his schedule, realizing that trying to get things done during the chaos of regular business is usually impossible. That’s another thing business owners should look for in a consultant: someone who’s

Before You Hire a Consultant, Ask:

1. Why did you decide to become a consultant? 2. How will we measure the results of our work together? 3. How will you communicate with me throughout the process, and how often?

4. What was the biggest mistake you’ve ever made in business, and what did you learn from it?

5. May I have the names, phone numbers and email addresses of five people you’ve consulted for?

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BUSINESS » Hiring a Consultant willing to work around their business hours and work non-traditional hours with them.“I always tell my clients that if they want to start talking business at the end of the day through dinner time, I’m open to that,” he says. “Or on Saturday, when we’re not constantly interrupted so we’ll probably get more done that way.”

Mental Preparation » Business owners may convince themselves that they need a consultant, but they may not be ready mentally to accept direction from an outsider. But Claypool says it’s crucial for them to get in the right mindset. “They need to tell themselves, ‘I am spending this money for the purpose of taking my business to the next level,’” says Claypool. “It’s letting go of their ego. We don’t all know everything. The owner must say, ‘I admit I don’t know everything, therefore I’m

going to spend some money and I want to see some return on that investment, so I’ll drop my guard and put my shields down and go into listen mode.’”

Ready to Quit Your Day Job? So you think you have what it takes to be a consultant? Ask yourself a few questions first: 1. Do you truly have the expertise to share with others? 2. What will happen to your business if you take time out to consult? 3. Would others describe you as inspirational? 4. Do you like to travel? Claypool advises to try giving your services away to someone first, then ask them what they feel those services would be worth on a daily or weekly basis. Fristoe cautions that the consultant wannabe understands they’re creating a separate entity with its own tax ID number, business cards, website, etc., and thus incurring the risk of offering counsel that may or may not be sound advice. “You’re exposing yourself as an expert or leader in your field to dispense advise,” says Fristoe. “You certainly need a lengthy level of experience in the field, and it needs to be wellrounded and not just in your specific discipline. People walk right out of school thinking they’re a consultant, but I think you need time in the trenches. You have to have experience running a business or being in a management position or role where you had accountability. For example, I have 24 years of experience and have seen a lot of things in a variety of industries and held many senior leadership roles. I don’t know everything, but I do know of a number of things that have worked in the past.” Robby Dunn of Masters School of Auto Body Management believes a consultant wannabe should ask themselves one main question: “Do I have a lot of patience?” “I’ve learned that it requires a lot of that,” says Dunn. “You think you have wonderful ideas, and you probably do, but things seem to never happen as fast as a shop owner or a consultant would like them to. My first advice is to be patient and understand that meaningful change is a matter of months, not overnight.”

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Claypool says the business owner has to be open to what the consultant has to say based on their assessment of the business and be willing to go out on a limb and make some changes.

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BUSINESS » Hiring a Consultant

“My first advice is to be patient and understand that meaningful change is a matter of months, not overnight.” —Robby Dunn

Also important is the owner explaining to the staff in advance that someone will be coming to look at the business. “The owner might say, ‘I’m bringing in a consultant who’s an expert in this field, and I don’t know about you guys, but I want to be in business and want to be able to provide you with jobs long term. This consultant will help us grow and understand what we need to increase sales or customer satisfaction. And I’m hoping everyone

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will give him their honest opinion.’” Claypool says when the owner sets things up that way, the employees will tell the consultant what they feel, openly and honestly, provided their identities are kept confidential. The consultant can then compile their responses and create a game plan, decide on a benchmark and establish when to touch base with the owner.

ROI » How does a business owner know if the hard-earned money they’re shelling out for a consultant is producing results? Claypool advises that owners should establish benchmarks with the consultant before the actual

consulting begins, establish what the deliverables will be, then measure the results in an agreed upon timeline. A business owner may be so busy in their day-to-day activities that they may not have an epiphany as to when is the right time to hire a consultant. It might just come from a peer who talks highly of an experience they had with a consultant. Or they could meet a consultant at an association meeting. Says Claypool, “At some point, if they start having some health issues from stress, someone needs to say, ‘Hey, you need some help in here, someone to come in and help run the show a little differently.’” BSB

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»| Industry Update |« Quest continued from pg. 12 putties to clearcoats, Quest Automotive is now truly able to offer a complete range of advanced refinishing solutions. “Above all else, our management team sincerely cares about the end user, and we are proud to have the opportunity to supply the entire refinishing industry with the

products they need and the service they desire.” Added Tom Perry, vice president of sales and marketing for U.S. Chemical, “I am excited to see what opportunities our international presence can open up for Quest Automotive Products. There is virtually unlimited potential to take the combined product line of

GEICO continued from pg. 12 costs for labor, materials and overhead have steadily increased. The only way we could survive was to either concede to the underpayments and cut our quality of materials and labor…or push back. We found short-pay litigation necessary to stop the insurer’s practice of underpaying our customers and to enable us to provide the quality repairs that earn our customers (and their referrals) for life.” Schaech credited a free legal seminar in Florida hosted by Barrett Smith of Auto Damage Experts, Ray

Matrix, U.S. Chemical and ProSpray to the marketplace, and I expect exceptional growth in both domestic and international markets in the next two to three years.” Quest Automotive Products will operate manufacturing facilities in Walled Lake, Mich.; Massillon, Ohio; Canton, Ohio; and Biggleswade, Bedfordshire (United Kingdom).

Gunder of Gunder’s Auto Center and Gunder’s attorney, Brent Geohagan, with motivating him and giving him the information he needed to take action. “That was a turning point for us. To hear Ray talk about how he knew that if he hadn’t done something he would be out of business struck a chord in me, and I knew then that I, too, needed to do something or we would lose our business,” Schaech said. “Ray gave much credit to his success in having a great support team in Barrett as his consultant and Brent as his legal counsel.” Nationwide continued from pg. 13 courage other quality-minded repairers to seek similar actions against the less-than-ethical insurers,” said Bradshaw. “We learned a great deal in this initial case, and I have had to embark on two more cases against Nationwide for shortpays in the amounts of $5,663.24 and $10,135.52. I’m confident we will prevail as I know we are in the right. I know such actions are necessary to stop such behavior and to best serve our community members, our employees and our company. We’ll continue to share our efforts with others so they may know that they no longer have to accept insurer dictation of repairs, rates, materials and charges.”

State Farm continued from pg. 13 ing the same. I’m very proud of climbing that mountain, and the view from where we sit is awesome. We’re currently receiving full payment for our labor rates, procedures and materials from nearly 50 insurers, and we’ll be adding more to that list in the weeks and months ahead.” Circle 70 for Reader Service

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»| Industry Update |«

National Georgia Shops Accusing Insurers

of Steering After Raising Labor Rate By Jason Stahl ome Georgia body shops are charging insurers with steering after raising their labor rates. Mike Purnell of The Body Shop in Brunswick says that he raised his rates from $42 per hour to $48 – the first time he has raised rates in 10 years – and now insurers are taking cars to shops up to 70 miles away in Waycross. Other shops in his area that haven’t raised their rates are being flooded with work, he says.

“The average rate in this town is $48,” says Purnell. “There has to be some law against what the insurers are doing. They’re price fixing and starving the lower class.” Purnell went on to explain why he has had to raise his rate. “I’ve been hit with inflation for the past 10 years and I’ve just sucked it up. People are losing money hand over fist on paint and materials. All the good guys in this town are hanging on by their fingernails. I would like to upgrade my equipment and give my people a raise who haven’t had one in 10

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years. I would like to give them health insurance, where last year I had to drop it.” Ryan Dykstra, manager of Advanced Collision Center, also in Brunswick, is in the process of raising his rates and says that some insurers are paying them while others aren’t. He says he has had six cars either towed from his shop or picked up by customers who didn’t want to pay out-of-pocket costs. In one case, Dykstra says, he told a vehicle owner that she would owe an additional $133 if they did the repair. He says she contacted her insurer, and the insurer subsequently had the car towed to another shop. “The insurance adjusters aren’t stupid,” says Dykstra. “They know how to word what they’re saying so legally it can’t be called steering.” Dykstra consulted with a local attorney, who told him that third-party

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»| Industry Update |« claimants are in a more negotiable position than first-party claimants when it comes to how much the insurer is obliged to pay for repairs.“It’s not realistic or reasonable for a prevailing rate to be a specific number. It’s the way the free enterprise system works,” he says. “There is a spectrum of numbers, and as long as the amount being charged isn’t well outside of any reasonable spectrum, then the insurer owes that rate.” Glenn Allen of the Georgia Insurance Office says he is encouraging the shops affected to contact his office, but they need hard evidence. “It will be difficult to respond to allegations,” says Allen. “If a body shop owner has evidence of wrongdoing, then that’s definitely something we would take a look at.” Dykstra said coming up with hard evidence is easier said than done. “You need a claimant, and they have to be willing to have their car sit for a month or however long it is not getting repaired. And they will also likely incur attorney’s fees because even if the insurers end up paying the rates, there is no extra

money to pay for attorney’s fees. It’s not in my program to hassle customers to get signatures, but maybe if this escalates far enough, I will do that.” As to the price fixing allegations, Allen said he didn’t believe that was the insurance department’s “area.” “We want to know if business is being steered or if the consumer wasn’t given the opportunity to choose a shop of their choice. If consumers are being told they have to go to a particular body shop or their vehicle will not be repaired, then that is a concern to us.” Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, said this is not the first time he has heard about insurers hauling cars to faraway shops to avoid paying increased rates. “I’m familiar with the tactics of insurers doing that. It’s unfortunate that insurers are unwilling to recognize market rates and the fluctuation that occurs in them and feel they need to resort to things such as steering or manipulation of where the consumer goes – if that in fact is what’s happening here.”

The Hartford Ordered to Pay $20 Million to Connecticut Shops he Hartford insurance company has been ordered to pay $20 million in punitive damages to auto body repair shops throughout the state of Connecticut. The lawsuit was filed on the grounds of unfair trade practices and labor rate suppression steering by the Auto Body Association of Connecticut (ABAC), according to its president, Tony Ferraiolo. The penalty was sanctioned by state Superior Court Judge Alfred J. Jennings Jr. on Friday, June 5, nearly 10 years after ABAC filed the lawsuit. In addition to this recent decision, the Superior Court jury ruled against The Hartford in 2009, awarding $14.7 million in damages to nearly 1,000 body shops in the state. However, those shops have yet to see the nearly $35 million award. A Hartford spokesperson announced their plans to appeal. In the meantime, Ferraiolo says the decision could have a huge impact in the state if it’s upheld. “If The Hartford follows the guidelines put in place by the judge and reports back, [Jennings] would get all the data, and he’s hoping that the market will adjust. He did warn that if they didn’t adjust fairly, he’d appoint a special master who would actually go out and determine what the rates should be in certain areas of the state. But for now, he’s trying to let the insurance company do what it’s supposed to do. “They can use a [direct repair labor rate] as a guide, but not solely as a rate for independent shops,” he continued. “This would allow the marketplace to adjust to a more fair labor rate because it would be based individually on each shop.” ABAC has also filed a lawsuit against Progressive on similar grounds.

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»| Industry Update |« Washington Metropolitan Auto Body Association’s

Survey Reveals Stagnant Labor Rates he Washington Metropolitan Auto Body Association (WMABA) has released the results of its 2013 independent labor rate survey. Conducted by CSi Complete, the survey shows that the year-to-year door rate of shops in the WMABA demographic has essentially remained stagnant. “Depending on which area you’re in, it doesn’t seem that the actual rate has changed in most of these markets for nearly 10 years,” said WMABA President Barry Dorn. “This survey shows that there is a big difference between what you’re told is the rate within a market and what a statistically valid survey shows. Shops are merely existing; they’re not able to make a return on their investment or

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plan for future equipment and updates. They’re not able to give raises to their employees or add benefits.” Added Don Beaver, WMABA Board member and manager of Antwerpen Nissan in Clarksville, Md., “The rates that are paid by insurers have stayed pretty steady; it’s a daily struggle because every expense we have has gone up year after year. If we don’t do something to bring those rates up, our meager profits are going to be nothing.” Aside from its disappointing numbers, this year’s survey saw an increase in shop participation. At least 50 percent of shops that took the survey did so online through www. wmaba.com – a substantial increase over last year.

“Shops were more likely to participate because they understood the process from last year,” said WMABA Executive Director Jordan Hendler. “They definitely had less concern this year, because last year’s process was new to them and they weren’t sure how it was going to go. But after going through it once already, it was easy for them to do it and they knew their personal shop data wasn’t going to be shared.” Although the 2013 results show little change over the 2012 project, Beaver is optimistic about the future. “I hope we continue to do this every year so that it becomes more commonplace for everybody to fill it out. It may be three or four years before this [survey] actually shows a trend.”

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»| Industry Update |« Oregon Body Shops Give Top Grades

to State Farm, Oregon Mutual he Northwest Automotive Trades Association (NATA) has released the results of a survey of Oregon collision repair facilities asking them to rank insurance companies based on taking care of their customers after an accident. More than 70 shops responded to the survey, and the results indicated that State Farm and two smaller Northwest-based auto insurers continue to be among the best at taking care of their customers after an accident. And some of the other larger, best-known insurers – including GEICO, Safeco and Farmers – are among the worst. “Just as medical providers see how health insurers take care of

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patients, collision repair shops interact with auto insurers on a daily basis, so we feel it’s worthwhile to ask how those insurers treat Oregon drivers after an accident,” said Barbara Crest, executive director of NATA. “We believe their views will be helpful to insurance companies and consumers.” More than 500 collision repair shops throughout the state received the survey, which asked them to grade the Top 20 auto insurers in the state in terms of how well each company’s “policies, attitude and payment practices ensure quality repairs and customer service for Oregon motorists.” This is the seventh time NATA has conducted such a survey since

2004. Crest pointed to a number of items of interest in the findings of the latest survey: 䡲 Repairers have consistently given the same three companies a grade of B or better all seven times the survey has been conducted. State Farm has continued to hold on to the top spot, receiving an overall grade of B+ again this year. But a Northwest insurance company, Oregon Mutual, nudged up from a B last year to a B+ in the latest survey. Mutual of Enumclaw once again ranked third with a B. State Farm is the largest auto insurer in Oregon; Mutual of Enumclaw and Oregon Mutual are ranked 12th and 13th, respectively. 䡲 In addition to Oregon Mutual,

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»| Industry Update |«

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six other insurers saw their grades improve from the 2012 survey. Travelers became the fourth-highest graded insurer by earning a B- (up from a C+ last year). Progressive, Ameriprise and Country Companies each moved up half a grade to C+. 䡲 Although the same four insurers were on the bottom of the rankings for the third straight year, the order amongst them changed because Allstate improved to a C (from a C-) and GEICO brought its D+ in 2012 up to a C- this year. 䡲 Progressive’s improvement is notable given that it had a D+ or worse (and the lowest or second-lowest ranking) in every survey between 2004 and 2009. Even last year, it was ranked 16th on the list with a C, but this year moved to eighth with a C+. 䡲 Although Allstate still only received an average grade, that’s an improvement over the D or D+ it received in each survey between 2008 and 2011. 䡲 Three insurers saw their grades drop. USAA, which ranked fourth last year, dropped behind Travelers and Kemper/Unitrin when it received a C+ rather than the B- it did last year. American Family and Liberty Mutual also dropped half a grade. 䡲 Farmers and Safeco received an “F” from about one in four shops, the most failing grades received by any insurer. (By comparison, GEICO, the third-lowest graded insurer, received about half as many Fs as Farmers.) State Farm received an “A” from well over half of shops. 䡲 In most cases, the grades given a particular insurer from shops involved in that insurer’s direct repair program (DRP) were higher than those given by shops that are not part of that insurer’s program. This was particularly true with USAA and The Hartford; their DRP shops gave them grades of A- or better, while non-DRP shops gave these same insurers grades of C or C+. But even American Family and Farmers direct repair shops gave those insurers only average grades of C. “Collision repairers say the insurers receiving the highest grades – which includes both larger and smaller insurance companies – do the best job of taking care of Oregon drivers after an accident,” said Crest. “We hope consumers will take these ratings into account when choosing an auto insurer, and that insurers that received lower grades will work to improve their performance.”

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»| Industry Update |«

Consolidation The Boyd Group Acquires U.S. Auto Glass Company with 61 Locations he Boyd Group (Gerber Collision & Glass) announced that it has effectively acquired a majority ownership and controlling interest in the retail auto glass business of Glass America Inc., which operates 61 retail auto glass locations across 23 states under the trade names of Glass America and Auto Glass Services.

“This acquisition is very attractive from both a strategic and a financial point of view,” said Brock Bulbuck, president and CEO of the Boyd Group. “The automotive glass restoration business is a natural and complementary extension of our industry-leading collision repair business. This acquisition will increase our U.S. glass business size, both in

CARSTAR Opens New Shop in Connecticut CARSTAR Auto Body Repair Experts is expanding its network in Connecticut with the opening of Kar Kare CARSTAR in Ellington, Conn. Owned by Ed and Brian Bolles, and managed by Ron Midford Jr., Kar Kare CARSTAR is located at 113 Windermere Ave. Kar Kare CARSTAR is a division of Bolles Motors, which owns the Chrysler, Jeep and Dodge dealership in Hartford, Conn. The family business has been in operation since 1976. “The decision to partner with CARSTAR was easy,” said Midford. “In our highly competitive marketplace and an industry full of consolidation, we needed a partner to help us stand out from the rest. CARSTAR’s established supplier network and insurance company relationships allow us to take our business to the next level. We are very excited to be on board with CARSTAR and look forward to the challenge.” Added CARSTAR CEO David Byers, “We are excited to have Ed and Brian Bolles join the CARSTAR network. We are thrilled to expand our presence in the Connecticut region, and welcome Kar Kare CARSTAR as our newest top-notch collision repair center in the area.”

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July 2013 | BodyShop Business

terms of footprint and annual sales, to become the second largest retail auto glass business in the U.S., servicing 28 states covering approximately 50 percent of the U.S. population. This retail expansion, in combination with our already established nationwide auto glass network, Gerber National Glass Services, significantly improves our positioning with U.S. insurance company customers. Financially, we expect this acquisition to be immediately accretive to our earnings and cash flow, with significant synergy opportunities available over time as the Glass America operations are integrated into Gerber Glass’s operating model. It will also better position our glass business for growth alongside our growing collision business.” Added John Teeger, chairman of Glass America Inc., “Glass America and its investors will benefit from the transaction by ownership in the second largest windshield repair and replacement entity in the United States and participating in the considerable expected revenue and cost synergy benefits arising from joining with Gerber Glass. Our customers and employees will benefit from the combined regional spread of operations covering a majority of the states of the U.S., coupled with utilization of the Gerber Glass call center and the financial strength of the combined entity.” Glass America operates 61 auto glass centers in 23 states and had 2012 revenues of $43 million. Gerber Glass operates exclusively under a fully mobile retail glass service model in 12 states and, in combination with its Gerber National Glass Services network, had revenues of $19 million in 2012. The Boyd Group believes that, in addition to operational synergies, there are opportunities to grow sales through a combination of same-store sales growth, acquisition growth and market expansion, concurrent with The Boyd Group’s U.S. collision growth.

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»| Industry Update |«

Legislation Wisconsin Legislature Introduces Anti-Steering Bill

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Wisconsin Assemblyman Ed Brooks (R-50) recently introduced Assembly Bill 237 regarding automobile repair facility steering by insurance companies. The state legislature’s Legislative Reference Bureau (LRB) notes that under Wisconsin law, it is prohibited for an insurer that issues a motor vehicle insurance policy that covers the repair or replacement of motor vehicle glass from conditioning the coverage on whether the insured or a third party making a claim under the policy obtains services or parts from a particular vendor specified by the insurer. According to the LRB, Assembly Bill 237 provides that the “consumer has the right to select the motor vehicle repair facility of his or her choice and prohibits an insurer that issues a motor vehicle insurance policy that covers repairs to a motor vehicle from: 1) requiring that repairs must be made by a particular contractor or repair facility as a condition of that coverage; or 2) failing to initiate or conclude with due dispatch an investigation of a claim for repairs on the basis of whether the repair will be made by a particular contractor or repair facility. No hearing has been scheduled to date in the Assembly.

Texas Governor Signs Franchise Tax Bill The Texas Franchise Tax legislation, supported by the Automotive Service Association (ASA) and ASA-Texas, was included in Substitute House Bill 500, which recently passed the Texas legislature and has now been signed by Texas Gov. Rick Perry. Currently, automotive service and collision repair shops owned and operated by new or used car dealerships are taxed at half the rate used to tax independent automotive repair facilities doing identical work. The Texas state tax code classifies dealership

sales as “retail” and allows their service and repair business to be included under that banner. Independent automotive repairers have not had the same opportunity. The Texas Franchise Tax legislation, included in Substitute H.B. 500, states that “the activities classified as Industry Group 753 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget fall under Retail Trade,” addressing the Texas inequity.

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Product

Showcase Remove Static and Other Contaminants The Clean Room Ionizing Gun provides safe, durable and highly effective static and contaminant removal. Used with compressed air or nitrogen, the gun can be used to target difficult areas more effectively. It also provides zero-volt offset performance without the worry of the particulate contamination that commonly occurs with other types of electrical and piezo-style ionizing guns. NRD LLC www.nrdinc.com Circle 150 for Reader Service

Generate Nitrogen On Demand Urethane Supply Companyâ&#x20AC;&#x2122;s new 6065 Nitro Pro Nitrogen Generator is designed to replace costly and inconvenient compressed nitrogen bottles used in nitrogen plastic welding systems. The Nitro Pro generates nitrogen on demand by continually separating nitrogen molecules from compressed air, producing 98 percent to 99 percent pure compressed nitrogen to be used by the plastic welder. Urethane Supply Company www.urethanesupply.com Circle 153 for Reader Service

Quickly Fasten Pinch/Spot Welds The Micro Weld Clamps offer a fast and effective method of fastening materials for a pinch/spot weld. Especially effective for positioning body panels, these clamps generate huge force for their size. All four are adjustable from zero to 7 millimeters and can be applied to small spaces like door columns, trunk edges, window edges and hatchbacks. A set of four retails at $34.99. Dent Fix Equipment www.dentfix.com Circle 151 for Reader Service

Efficiently Grind and Blend Materials Dynabradeâ&#x20AC;&#x2122;s Auto File II Abrasive Belt Machine is an air tool ideal for grinding, blending and deburring various materials quickly and efficiently. It can be used on metal, plastic, wood and other composites. Its compact design makes it ideal for use in tight spots, and its 360-degree pivoting grinding head permits additional flexibility. Dynabrade Inc. www.dynabradeauto.com Circle 152 for Reader Service

July 2013 | BodyShop Business

»| Product Showcase |« All-Inclusive Hole Cutting Kit The Rotabroach Sheet Metal Hole Cutter Combo Kit features both a small and large diameter kit in one convenient package. It includes 13 sizes of Rotabroach sheet metal cutters, which can drill holes in materials up to a quarter- or half-inch thick. The kit also contains two arbor assemblies, extra pilots, center punch, washers and instructions. The cutters can be used in most hand-held electric drills and in drill presses. Blair Equipment Company www.blairequipment.com Circle 154 for Reader Service

Pointof-Use Filtration System The 5 Micron Compressed Air Filter provides point-of-use filtration of liquids, oils and other contaminants. This two-stage filter is ideal for a variety of applications including surface preparation, paint spraying, powdercoating, air-powered tools and pneumatically operated equipment. It’s available in sizes with flow ranges of 15 to 250 SCFM.

Durable Contact Pads The Polyurethane Tuf-Pads are comprised of a hardness elastomer that outlasts rubber for a longer lifespan without sacrificing grip. They are designed for two-post car lifts. BendPak www.bendpak.com Circle 156 for Reader Service

Walmec North America www.walmecna.com Circle 155 for Reader Service

Compact and Variable Compressor The GA VSD+ is a compact, oil-injected rotary screw compressor that requires 50 percent less energy than a comparable idling compressor. It offers variable speed and a robust air intake system. Atlas Copco www.atlascopco.com Circle 157 for Reader Service

Safely Load Disabled Vehicles The I-Bolt allows body shop technicians to safely load disabled foreign and some domestic vehicles on rollback wreckers and frame racks without causing damage. It provides quicker loading of disabled vehicles with tow eye holes by allowing the driver or technician to pull a vehicle on the rollback bed. It also includes a safety strap and a 3.5-inch steel flat snap hook. Steck Manufacturing www.steckmanufacturing.com Circle 158 for Reader Service

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Shop Joe Sanfillipo III Chief Operating Officer USA Collision Centers 䡲 Cincinnati, Ohio

Are you a Bearcats fan? I am a huge Bearcats fan. I started going to the games when I was 10. My dad graduated from the University of Cincinnati and introduced me to them.

Who is your favorite player on the team currently? Actually, I’m more of a fan of the coaches than anything, oddly enough. Looking at things from a management perspective, I kind of respect coaches, and I would have to say Mick Cronin, the Bearcats’ basketball coach, is a pretty deep thinker, and that’s why I like him a lot.

Are you a deep thinker yourself? I like to think I am. Might be a shallow pool, but to me it’s deep.

So what do you “deep think” about? Everything, from personal life to business – where I am currently and where I want to be personally and corporately, the whole nine yards. How I can make the world – in every aspect – somewhat better of a place to be. I want to leave a positive mark no matter what we do, whether it be how we run our company or what our giveback to the community is or what my personal giveback is. I’m thankful for a lot of stuff. Everyone has their issues in life, but I’ve been fairly fortunate, so I think it’s only right to give back as much as I possibly can.

July 2013 | BodyShop Business

What sort of things do you do to relax? Geez, I don’t have a whole lot of relaxing time any more. We have a condo in Naples, and I joke with my wife that Naples is my happy place. I can go there and kind of just hang out.

Are you surfing, fishing or golfing there? Actually, I like to walk on the beach and catch the sunsets. It’s the complete opposite of what my day-to-day life is. I try to escape everything while I’m down there as much as possible.

Cincinnati is known for its chili, right? So is it Skyline or Gold Star for you? I am definitely a Skyline fan.

Is King’s Island the best amusement park in the world? It’s pretty good in my book. Disney World, too, but that’s a totally different experience down there.

Are you a big rollercoaster fan? And what’s your favorite one? Yes I am. My favorite is The Beast at King’s Island; I don’t know if it’s the scariest, but it’s my favorite. BSB

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