8 minute read
LET’S TALK TRAINING
MAKE YOUR BOTTOM LINE TOP OF MIND
Do you really need more work—or is there an alternative?
BY STEFANO LIESSI
In my regular Collision Repair columns, I typically touch on training in the technical and hands-on area of the collision repair industry; today, I digress a wee bit.
I realize that there is approximately $36 billion spent per year on marketing by Canada’s small-and medium-sized enterprises (SMEs), all in an effort to get customers through the front door. But what if I were to suggest a strategy that could bring an increase to the revenue stream all by way of adjusting a process or two. Would you be interested?
This is not a get-rich-quick scheme just a simple concept that could be beneficial to your enterprise. Some of the biggest costs to your business are materials, equipment and time. If you do not maintain these items, it will cost you dearly. Allow me to break this down for you; implementing these ideas will have a zero cost.
First off, we need to make a clarification on the definition of shop supplies and materials: cleaners, cloths, tips, nozzles, welding wire, welding gasses, solvents, equipment, equipment service and maintenance, equipment software, customer convenience amenities, wash bay materials, shop clean up tools, disposal services… and the list goes on. These are all items the shop supplies to run their business in a general standard operating procedure. Note that these are generic and are either consumables or remain in the facility and are nonvehicle specific. These are used in aid to repair the vehicle but are not part of the vehicle.
My point here is this, clips, fasteners, onetime use fasteners, caulking, sealers, retainers, bonding agents, sound deadeners, etc. are parts. These items are required to put the vehicle back into pre accident condition and remain as “part” of the vehicle.
These items are line items on the estimate, line items encompass double duty, they require a labour note and part price. Some labour may
be included in the operation—clip installation is part of the O/H labour times—but you still need the part price and number.
This also documents that you have replaced this item. As we know, there is no official generic formula to be applied to the cost of these items—the advancements in automotive design have made sure of this.
Now before you get hot under the collar, hear this out: As a shop you cannot just start charging away like crazy for these items; you need to be honest and fair. If a bumper has 25 clips and four are broken, you bag and tag the items, take photos and add 4 to the estimate—not 25.
Next, let’s talk equipment. You have spent thousands of dollars on equipment—use it. All too often I see equipment in the shop collecting dust. If you have it, make it work for you.
One example is measuring systems, which I commonly see misused or ignored. You should be measuring these vehicles—today’s technological advancements demand it; the liability tied to these advancements demand it.
You may be yelling at these pages, “We don’t get paid to measure unless it needs it!” This is the most asinine argument I have heard since I last tried to reason with a toddler.
There is only one way to know if a vehicle requires measuring, and that is to measure it. Is there an exception? Possibly, a key scratch, door ding or I may go as far to include hail damage.
Every time I ask someone if they have ever skipped measuring, only to have the vehicle come out of paint to realize they should have measured it, I get a resounding 98 percent yes response. That can’t be good for the bottom line, now can it?
Finally, everyone’s favourite topic—time. We never have enough of it. Never enough time to do it right the first time—but always enough to do it right the second.
I-CAR states that 80 percent of estimate supplements can be eliminated by blueprinting the process. Take the time up front during the estimate process. Systematically plan out the repair.
It is here where you identify and account for all the parts and clips and retainers required to complete the job, all panels including blend panels, 100 percent teardown and the lot. It is here where you measure to find the hidden damage right away—not halfway through the repair.
Remember that taking the time to ensure the procedures are documented is also a line item—nowhere in any estimating system does it say that researching OEM requirements and procedures is “a cost of doing business.” Putting the time at the beginning of the process allows you to mitigate the end. The more accurate and accountable the estimate is, the more accurately your KPI’s will reflect your business. Cycle time, touch time, LOR, capacity, all of this will reflect your accuracy, in turn, help your bottom line with no monetary investment.
Following these simple, yet—to some— controversial processes, you will see costs start to balance out, equipment being utilized, and time spent wisely.
In my opinion, and you are entitled to my opinion, the most important outcome of all of this is a facility that provides quality, timely, proper repairs, equitably that create happy customers making your bottom line top of mind.
STEFANO LIESSI
A Red Seal technician and founder of Canadian Collision Specialist, Stefano Liessi enhances his experience with 12 years of I-CAR instructing, coupled with high school teaching to bring training that encompasses all learning types. With experience on the corporate side of the industry, as well as in management and ownership, Stefano’s focus is proper repairs and equitably for all people involved in the collision industry.
SUBSCRIBE TODAY FOR FREE!
At Media Matters, we are proudly Canadian and committed to bringing you the most up to date collision repair news that matters to industry professionals. So much value in one free subscription.
DEFEND YOUR ACCESS TO VEHICLE DATA: MORE INSIDE
Volume 20, Number 1 l February 2021
ON YOUR MARK
The EV arms race is on— are you ready?
AT THE HELM
CCIF unveils the 2021 Steering Committee
SHOULDERING ST. STEPHEN
ENDLESSLY COMPASSIONATE COLLISION EXPERTS RON AND MANDY ALBERTS
PLUS: Expectations for 2021 / Removing estimation guesswork / Curing internet fatigue
www.collisionrepairmag.com
Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
SPECIAL EDITION $15.99
2021
A SHOWCASE OF TOP PRODUCTS AND SERVICES!
HOTTEST PRODUCTS! YOUR #1 SOURCE FOR THE INDUSTRY’S LE MUSÉE DE L’AUTOMOBILE DANS LA PRAIRIE
COLLISIONREPAIRMAG.COM
Canada Post Canadian publication mail sales product agreement No. 40841832. A special edition of Collision Repair Magazine. 86 John St. Thornhill, ON, L3T TY2 COLLISION INDUSTRY COMPLAINS: IS RESELLING A WRITE-OFF?
L’INDUSTRIE DE LA COLLISION SE PLAINT: LA REVENTE EST-ELLE UNE PERTE SÈCHE
Volume 15 l 2021
STORM WARNING
Brace for the battery barrage!
OPPORTUNITIES DOWN UNDER
An up-close look at Australia’s auto recycling sector AVERTISSEMENT DE TEMPÊTE
Préparez-vous au barrage de la batterie!
OPPORTUNITÉS EN BAS SOUS
Un regard de près sur le secteur australien du recyclage automobile
SURVIVING ARMAGEDDON
Ron Bastarache on keeping business going through a global catastrophe!
SURVIVRE À ARMAGEDDON
Ron Bastarache sur le maintien affaires en cours une catastrophe mondiale!
Natalie Miller named woman-of-theyear | Tony Carcone on leaving Italy for auto recycling in Canada | Bruce Woodbeck’s industry insights | The ARA’s cutting-edge convention | and MUCH MORE!
Natalie Miller nommée femme de l’année | Tony Carcone en quittant l’Italiepour le recyclage automobile au Canada | Perspectives de l’industrie de Bruce Woodbeck | La convention de pointe de l’ARA | et beaucoup plus!
canadianrecycler.ca
Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2 Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
CAR15#1.indb 1 2021-02-25 4:39 PM SPECIAL EDITION OF
SEVEN STEPS TO CAREER SUCCESS
BODYWORX
THE VOICE OF COLLISION REPAIR TECHS & PAINTERS PR OFESSIONAL OFESSIONAL
FOSS-IL FUELS
An up-close look at Canada’s first gas-powered car
UNVEILING ELECTROLIGHT
The bold shade named Akzo’s hue of the year!
MORE THAN LUCK
Lucky 13’s Hannah Kasiri has talent in droves
+Plus ONLINE ALERTNESS | PANDEMIC REALITY CHECK | STATSCAN ON APPRENTICESHIP
Visit bodyworxmag.com
SPRING 2021 l $7.95 l Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
BW8#1.indb 1 2021-02-25 2:25 PM
2020
SPECIAL EDITION $15.99
Powered by
SHIFT YOUR FUTURE INTO OVERDRIVE!
The ultimate career guide for Canada’s auto repair sector includes:
- A complete look at Canada’s college-level collision courses - A peek inside industry training centres across Canada INSIDE: - Top-notch career advice from industry insiders
TOUCHLESS REPAIRING UNDERSTOOD - MASTERING MIXED MATERIALS - AUTO GLASS UNDER THE MICROSCOPE
CHECK THE LATEST INDUSTRY TRAINING NEWS OUT AT TRAININGMATTERS.CA
Canada Post Canadian Publications Mail Sales Product Agreement No. 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
TrainingDirectory2020Book .indb 1 2020-10-06 2:58 PM
À L’INTÉRIEUR DU TOUT PREMIER ÉVÉNEMENT VIRTUEL DU CCIF!
LES TEINTES DE DEMAIN
Le rapport annuel en couleur de BASF
SUCCÈS SUR TOUTE LA LIGNE
Partout où va Réjean Marchand, la prospérité suit
DISSÉQUER DIAGNOSTICS
Mitchell dévoile les tendances technologiques de 2020
PLUS Nouveaux cadres de l’AIA Québec / Découvrez votre meilleur match de peinture / Planification des capacités avec Progi
Novembre 2020 l 4,95 $ l Convention de poste-publication numéro 40841632 l 86 John Street, Thornhill, ON L3T 1Y2
COLLISIONQUEBEC.COM
On Top of his Game
How Joey Gagne of Abrams Towing became a legend of the industry!
LIVE ON THIN ICE
Winter warriors save lives
COVER YOUR REAR END!
How to protect your business from legal nightmares! SPECIAL PREVIEW EDITION
PLUS:
TOW PROS REMEMBER fallen industry comrades Tow management soft ware GETS AN UPGRADE THE SIX TRICKS to successful business growth PREPARE YOUR BUSINESS for the post-pandemic world and much, MUCH MORE
The Roll of Honour: The 30 Canadians shaking up the towing and recovery business!
To receive free editions of all publications SUBSCRIBE TODAY at mediamatters.ca/subscribe. Canadian addresses only.
