FENDERBENDER.COM / JUNE 2020
MORRIS:
TA K E C O N T RO L O F YO U R T I M E PAGE 49
4 WAYS TO I N C R E AS E CA P T U R E R AT E PAGE 38
B EC O M E YO U R B ES T S E L F
Strategies & Inspiration for Collision Repair Success
PAGE 46
WHY THE ‘NEW NORMAL’ COULD MEAN INCREASED OPPORTUNITY PAGE 28
2 fenderbender.com | June 2020
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june
06.20 / VOLUME 22 / NUMBER 06
Proceeding with Caution Shop owner Joe Townsend has eased customer concerns in Michigan by painstakingly disinfecting vehicles.
F E AT U R E
C A SE STU DY
28
43
Accomplished industry veterans provide the game plan to help shops survive and thrive through the COVID-19 pandemic.
A Vermont shop streamlined the supplement process by focusing on perfecting blueprinting in a few relatively easy steps.
TRUE GRIT COURTESY DUNSHEE BODY & FR AME
BY KELLY BEATON
ORDER UP BY MELISSA STEINKEN
Printed in the U.S.A. COPYRIGHT Š2020 BY 10 Missions Media LLC. All rights reserved. FenderBender (ISSN 1937-7150) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. FenderBender content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: FenderBender, 571 Snelling Avenue North, St. Paul, MN 55104. June 2020 | fenderbender.com 5
TAB LE OF CONTENTS
JUNE
QUICK FIX
11
18
23
Make the most of your down time
Analyzing Driven Brands’ expansion
The impact of overthe-air updates
12
21
24
Judging the impact of lean processes
Steps for ensuring a safe working environment
Custom Craft Auto
ANALYSIS
NUMBERS
VIEWPOINT
15
LIGHT HITS
Focus on finding business solutions Changing on the Fly Custom Craft Auto Collision Inc. in New Mexico is focused on efficient production, with plenty of moveable equipment.
SNAP SHOP
27
THE BIG IDEA
31
DRIVER'S SEAT
ADAPT
What the newest stimulus package means for shops
Improve social interactions BY KEVIN RAINS
24
KEEPING
AMERICA MOVING THANK YOU TO SKILLED TECHNICIANS
for keeping emergency responders, medical supplies, food and equipment rolling.
When Techs Rock, America Rolls.®
#TechsRock
TECHFORCE.ORG
6 fenderbender.com | June 2020
COURTESY CUSTOM CR AF T AUTO COLLISION INC.
PAST THE PAGE
S T R AT E G Y
37
46
50
Modernize your staff handbook by going digital
The secrets to making time for your passions
In tough times, focus on value
38
49
IDEA SHOP
CUSTOMER SERVICE Become clients’ trusted advisor
LEADERSHIP
OUTSIDE THE LINES BY JASON BOGGS
IN THE TRENCHES The power of saying “no” BY STEVE MORRIS
41
PROCESS DRIVEN Tips for improved shop throughput
46
GET T Y IMAGES
RYAN CROPPER
Is your plastic welder gathering dust?
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TRAINING • SUPPLIES • TOOLS • FILLERS • PRIMERS • EVERYTHING FOR PLASTIC
Call us at 800-633-3047 or visit polyvance.com June 2020 | fenderbender.com 7
TAB LE OF CONTENTS
ONLINE EXTRAS
CLICK ON THE LOGO BELOW FOR PRODUCT INFORMATION
ADAPT
BASF
Industrial Finishes
Polyvance
SATA/Dan-Am Company
AUTEL
CCC Informaton Services
LKQ Corporation
PPG
Sherwin-Williams Automotive Finishes
Mitsubishi
ProSpot
Spanesi Americas
Auto Job Central
FenderBender Managment Conference
2020
AutoNation
8 fenderbender.com | June 2020
TechForce Foundation
EDITORIAL Bryce Evans Vice President, Content and Events Anna Zeck Editorial Director Kelly Beaton Associate Editor Melissa Steinken Staff Writer Miranda Jama Marketing Services Manager
COLLISION
Nora Johnson Special Projects Editor Jordan Wiklund Special Projects Editor
C A S T
Gabe Holzmer Editorial Intern Courtney Welu Editorial Intern Jason Boggs Contributing Writer Ryan Cropper Contributing Writer Steve Morris Contributing Writer Kevin Rains Contributing Writer
EDITORIAL ADVISORY BOARD Jason Boggs Boggs Auto Collision Rebuilders Ryan Hillenbrand Urb’s Garage and Collision Center
FenderBender’s
PODCAST NETWORK
Jesse Jacobson Heppner’s Auto Body Tiffany Menefee Pronto Body Shop Bob Pearson Pearson Auto Body Louie Sharp Sharp Auto Body Doug Voelzke Doug’s Custom Paint and Body
ART AND PRODUCTION
SERIES WITH NEW EPISODES EACH MONTH. Explore the industry’s biggest trends & most pressing topics.
Zach Pate Art Director Mitch Bradford Graphic Designer Morgan Glisczinski Graphic Designer Fue Vang Graphic Designer Lauren Coleman Production Artist
SALES Chris Messer Vice President and Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson Associate Publisher
ADVANCE.
651.846.9459 / ajohnson@10missions.com Nathan Smock Marketing Strategist 651.846.9452 / nsmock@10missions.com Ross Kirgiss Regional Advertising Sales 651.846.9485 / rkirgiss@10missions.com Shayna Smith Customer Success Representative 651.846.9460 / ssmith@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com
10 MISSIONS MEDIA Jay DeWitt President Mariah Straub General Manager and Production Manager Meghann Moore Bookkeeper and Client Service Specialist Katie Cornet Event Coordinator Tiffany Fowler Senior Digital Media Strategist Kasey Lanenberg Marketing Communications Specialist Corey Steinhoff Administrative Assistant
DISRUPT. HOW I DID IT. MSO PODCAST. VISION.
HOW TO REACH US 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender. BACK ISSUES Past issue single copies are $8. Go to fenderbender.com/backissues LETTERS TO THE EDITOR editor@fenderbender.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue call 651.846.9488 or email reprints@fenderbender.com. Opinions expressed in FenderBender are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.
LISTEN AND SUBSCRIBE SEARCH “COLLISIONCAST” IN APPS FOR APPLE AND ANDROID
PODCASTS
STITCHER
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AUTOMOTIVE GROUP
June 2020 | fenderbender.com 9
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10 fenderbender.com | June 2020
PAST THE PAGE DISCUSSIONS, FEEDBACK, CONTENT AND MORE FROM AROUND THE WEB
REPORTER'S BLOG
MAXIMIZE YOUR TIME
A recent post (accessible at fenderbender.com/downtime), noted tips from VeriFacts Automotive about how shop staffs could make the most of any slow periods during the COVID-19 pandemic. Among the several tips noted: use this time to organize parts and supplies, adding a tracking system so that, as those products are used they’re promptly reordered. That, VeriFacts notes, can reduce parts delays.
GETTY IMAGES
COVID-19 RESOURCES
During the uncertain times brought about by the COVID-19 pandemic, FenderBender is frequently updating information regarding that topic on a dedicated webpage: fenderbender.com/COVID-19. There, you can find articles, videos, and podcasts with tips from experts, along with the latest information that can help shop operators navigate challenges.
COLLISION
PODCAST PRIMER
C A S T
Extra, Extra … News Podcasts Now Available FenderBender has begun producing a weekly, quickhitting audio news report. The report, which is available on our podcast page, is typically 3 minutes, and touches on the four biggest stories impacting the collision repair industry each week. You can access that weekly news report via any major podcast app, or by visiting fenderbender.com/podcasts.
JOIN US ONLINE fenderbender.com fenderbender.com/facebook • twitter.com/fenderbendermag fenderbender.com/linkedin • instagram.com/fenderbendermag
June 2020 | fenderbender.com 11
BY THE NUMBERS THE TOPIC S, TRENDS AND METRIC S DRIVING YOUR OPER ATION
THE VALUE OF LEAN PROCESSES The 2019 FenderBender Industry Survey indicates that incorporating lean processes on a shop floor can inspire increased productivity and cycle time. While the majority of respondents (just under 60 percent) said their shop doesn’t use lean philosophies to limit shop floor constraints, the stats largely suggest that’s a shortsighted decision. Facilities that utilize lean philosophies like Six Sigma, Toyota Way, or 5S also tend to boast solid performance metrics. Here’s a closer look at the numbers.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USE LEAN PROCESSES?
TECH. PRODUCTIVITY OF 110%+ TECH. EFFICIENCY OF 140%+
40%
60%
YES
NO
USE LEAN PROCESSES
NON LEAN PROCESSES
FIND MORE ONLINE
Late last summer, FenderBender produced a podcast in which Kansas shop operator Ken Hunnell explained how implementing lean philosophies greatly improved his shop’s cycle time by boosting efficiency. Find the podcast episode at fenderbender.com/hunnell.
12 fenderbender.com | June 2020
GETTY IMAGES, STAFF GRAPHIC
CYCLE TIME OF 7 DAYS OR LESS
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©2019 PPG Industries, Inc. All rights reserved. The PPG Logo and Envirobase are registered trademarks of PPG Industries Ohio, Inc.
June 2020 | fenderbender.com 13
ONE BRAND. COMPLETE FOCUS.
PULL UP! Repair System Electropuller (optional)
Glue gun
Suction cups (numerous sizes and shapes)
More tools
Thread pivots (numerous sizes, shapes and lengths) Repair cosmetic and structural damage Up to 5 tons of pulling capacity No panel burn-through or welding Suitable for both aluminum and steel panels
Spanesi Americas, Inc. 123 Ambassador Dr. STE 107 14 fenderbender.com | June 2020 Naperville, IL 60540
2 2 4 - S PA N E S I (224-772-6374)
Slide Hammers (various weights and lengths)
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DRIVER ' S SE AT
The Future Ain’t What it Used to Be But that doesn’t mean it has to be out of your control
If you’ve lived enough years, there’s a good chance that life
has thrown you some type of curveball. A real one—the kind that flips your life upside down in a single moment. Life has a way of twisting and turning unexpectedly. So, what do you do when you get to one of those twists? Well, that’s where I like to take some inspiration from a Yogi Berra quote I heard countless times growing up: When you come to a fork in the road, take it. I’m serious! Pick what seems to be the best road (or, honestly, just pick a road) and take it. Turns out it’s the wrong road? Reroute. But keep going, keep moving forward—no matter what. Am I making it sound simpler than it is? Yes, for sure. Perseverance is not easy. First of all, it’s fun to complain. And second of all, assigning blame elsewhere is far less work than picking yourself up and figuring out the next step. But neither of those options get you very far, and it also shows a lack of trust in yourself. I think that’s what stands out to me most when I read our cover story, “Unchartered Territory” (a very fitting title). The shop owners in this story have grit. Their natural response is to figure it out and adapt. They believe in themselves. And they want to help others do the same. There may not be a playbook for getting through a global pandemic, but there are solutions, strategies and resources for making it easier. I truly believe that everything is “figureoutable.” Yes, life is short, but it’s also, well, kind of long (I mean, how long have the past couple of months felt?). There is plenty of time to course-correct, to find your way, and to right the ship—if you’re willing to keep going and get creative. So, let’s stop talking about the problems—we’re all acutely aware of what they are—and start talking about solutions. Bet on yourself. It ain't over till it's over.
ANNA ZECK EDITORIAL DIRECTOR a z e c k @10 m i s s i o n s .c o m
June 2020 | fenderbender.com 15
Let talent shine.
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16 fenderbender.com | June 2020
™ basfrefinish.com
QUICK FIX NEWS
|
IDEAS
|
PEOPLE
|
TRENDS
Curing Paint Delays Custom Craft Auto in New Mexico has invested heavily in equipment like infrared curing units to keep its paint department running at full tilt.
ANALYSIS VIEWPOINT LIGHT HITS
COURTESY CUSTOM CR AF T AUTO COLLISION INC
SNAP SHOP
SN A P SHOP
24 June 2020 | fenderbender.com 17
QUICK FIX
ANALYSIS
BREAKING DOWN DRIVEN BRANDS’ LATEST ACQUISITION
A look at what Fix Auto USA’s sale to Driven Brands could mean for the overall industry
Driven Brands’ recent growth hit a higher
gear in late April. At that juncture, the collision repair consolidator announced its acquisition of both Fix Auto USA (FUSA) and Auto Center Auto Body Inc. (ACAB). After acquiring FUSA’s 150 fran18 fenderbender.com | June 2020
chise locations and ACAB’s 10 company-owned locations, Driven Brands’ strength in numbers has never been more apparent. Since Roark Capital acquired Driven Brands in 2015, it has executed 38 acquisitions. Driven Brands now has a footprint
of over 3,250 total locations throughout North America. “This partnership with Fix Auto USA has been in process since 2019, and we are thrilled to move forward with our commitment to the Fix team despite the current business climate,”
GETT Y IMAGES
B Y K E L LY B E AT O N
Driven Brands’ Outlook
noted Michael Macaluso, a top executive with Driven Brands who oversees its collision repair vertical, in a statement. “We look forward to seeing the added strength that this acquisition will bring to our overall portfolio.” Driven Brands’ latest business transaction comes less than a year after it acquired the franchise locations of ABRA.
Industry Impact
The April acquisition opened eyes across the industry. It was also emblematic of the current state of the collision repair industry at large, according to David Roberts, the managing director of Focus Advisors, which represented FUSA and ACAB in their sale. “Independent shops have been finding their way to MSOs,” Roberts says.
“You really want to be in association with people that know what they’re doing (and can provide) referrals and experience and resources. This is a trend that’s going on, and we think that … the (COVID-19) pandemic is accelerating this trend.” With sales lagging at many body shops across the country during the COVID-19 pandemic, Roberts envisions more consolidation in the months ahead for the overall industry. “For other folks in the industry, this is a really, really tough time,” Roberts notes, largely referring to independent shop owners. “People are really struggling to see how they’re going to maintain their business until we come back to a more normalized economy. “And the best and the brightest are going to flock together.”
Macaluso will now oversee Fix Auto USA as it joins Driven Brands' paint, collision and glass segment. The acquisition also brings longtime collision repair executives like Paul Gange, Erick Bickett and Shelly Bickett into the Driven Brands fold. The Bicketts founded Fix Auto USA in 1997, and Gange helmed that franchise chain in recent years. Gange will join Driven Brands as the President of FUSA, managing the franchise locations. The Bicketts will join as operating partners for the companyowned ACAB locations. FUSA and ACAB will retain their current branding, and the acquisition excludes Fix Auto Canada locations. FUSA’s sale was a surprise to Mondofix, which says it is the owner of the Fix Auto trademark and design in the United States and globally. Steve Leal, the president and CEO of Fix Network, said in a statement that his company was not made aware of the Fix Auto USA transaction before it occurred, nor did it consent to any transaction between Driven Brands and Fix Auto USA. The Fix Network did not respond to FenderBender’s request for an interview for this article. Regarding the disagreement between Mondofix and FUSA, Roberts told the magazine “What I do know is that they’re separate companies. And, our understanding is that Fix Auto USA, they licensed the name from Fix Canada. Further than that, I can’t really comment.” Moving forward, Macaluso says that the acquisition leaves Driven Brands further fortified in the realm of paint, collision, and glass repair and "enhances Driven Brands' size and scale. “In a time of consolidation for the collision repair space,” he added, “this strategic move also solidifies our position as an industry leader for our insurance, OEM, and vendor partners." Driven Brands’ paint, collision and glass segment also includes brands such as CARSTAR and Maaco. “Driven Brands now has four (collision repair) alternatives,” Roberts notes. “I think their strategy is to keep every one of those differentiating, and keep every one of them growing—and their capital is going to allow them to do it.” June 2020 | fenderbender.com 19
SYSTEMS • TECHNOLOGY • SUPPORT Social distancing is not the same as disconnecting… Web-based Ordering Systems Phone and Tablet Ordering Systems Electronic Invoicing and Payment Systems Business Analytics Systems Inventory Control Systems Online Training Opportunities Video Conferencing
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How can we help you? 800.531.1305 - IndustrialFinishes.com 20 fenderbender.com | June 2020
QUICK FIX
VIEWPOINT
RETHINKING SAFE BUSINESS PRACTICES Shops must carefully handle COVID-19 state reopenings with proactive measures BY MELISSA STEINKEN
In recent months, the spread of COVID-19 left countless shutdowns in its wake. The responses have varied across the United States. At the beginning of May, several states began reopening businesses. Body shops were deemed an essential business since the beginning of the coronavirus pandemic. However, with the coronavirus simply not fading away, collision repair facilities need to prepare their business for the new normal. Greg Smith, owner of Boruske Brothers Collision Center in Dayton, Ky., has remained open at full capacity with his shop since the beginning of the pandemic. He and his team are gearing up for more business for the $1.5 million body shop toward the end of June. Mike Ralston, president of the Iowa Association of Business and Industry, shares advice on how a body shop can successfully handle various reopening directions. Ralston’s background is in corporate taxation and public policy. Iowa is one of the states that began opening its retail stores in certain counties in early May. Smith shares his experience preparing for more business and Ralston shares his tips for small businesses to implement.
have a team of 10 here, so practicing social distancing has been fairly easy. We’ve implemented temperature checks with an infrared thermometer and all my employees are wearing masks and gloves. For customer vehicles, we’re disinfecting the car right when it comes into the shop and right before it leaves. The detail guy pays close attention to all the touchpoints of the car like the steering wheel, the gear shift, door handles and temperature control knobs. Do you offer any online services to make it easier for customers?
Back in October, we started using Bodyshop Booster and that’s been a huge help now. We typically pick up a vehicle and drop it off for the customer and, through Bodyshop Booster, we’re able to send the customer a link for them to follow a tutorial. The tutorial guides them through taking pictures of the damage and sending them to the shop. We’ll write the estimate here and often send the estimate through email. How have internal communications changed between you and your staff?
Mike Ralston What are the best practices for a business to navigate the coronavirus?
Businesses want to make sure to keep their employees safe and healthy. Make sure to deep clean the facility. Make sure that their employees wear masks. Other good practices include temperature screenings for each shift and to wear gloves. If there’s a way to do it, certainly try to keep employees six feet apart. What are the challenges you’re hearing from businesses?
The biggest challenge is: What if you have a situation where you can’t keep employees six feet apart? Employers are doing a couple of different things. One, they might try staggered shifts so employees are working different times. Two, they might install barriers. I know of manufacturers installing barriers between workstations. They might reconfigure their production floor to provide more space. What are the best resources a business owner can turn to for more information about the COVID-19 virus?
There is a ton of information on the ABI’s COVID-19 page right now. There’s
information on how to help employees file for unemployment, how to access the Paycheck Protection Program and items like that. The other place I’d recommend is CIRAS, which stands for the Center for Industrial Research and Service at Iowa State University. It’s absolutely a fantastic place to go to for information on COVID-19 assistance. If an employee is concerned about returning to work, how should employers handle that?
If you’re an employee that’s exhibiting symptoms of COVID-19, you need to talk to your employer. That dialogue is really important. In every instance I know of, employers want to work with their employees to keep them safe. Make sure they get the help and the test they need. If they’re concerned, I as an employer would want to know that and want to find ways to have the employee come back to work.
Greg Smith What safety measures have you put into place while remaining open?
Our facility’s 10,000 square feet and we
We still conduct a daily production meeting at 8:15 a.m. every morning but now we try to make the meeting shorter and have everyone stand around in a circle with distance between each other. When we’re all working, we definitely have increased the use of text messaging, emailing or assigning each other to tasks through our CCC management system. We see each other less throughout the day for updates on the repair. I’ve made it a priority to tell my team that if they’re not comfortable with events happening, they can come to me any time off to the side and we can talk. We did have one employee with a wife who worked at the hospital. She got sick and had to be tested for COVID-19. So, while we waited for the test to come back, that employee was home and quarantined. Do you expect to see more business now that other stores in your state are reopening?
During this COVID-19 outbreak, we have seen fewer cars in the shop but we’re only down in business by about 15 to 20 percent. We do predict that business will pick back up in June, since more people will be driving during the reopenings. June 2020 | fenderbender.com 21
TECH TRENDS TO GROW YOUR BUSINESS • • • •
10+ SESSIONS IN A VARIETY OF FORMATS TWO COMPELLING KEYNOTES ENDLESS NETWORKING OPPORTUNITIES AND A TOUR OF NISSAN NORTH AMERICA, SMYRNA VEHICLE ASSEMBLY PLANT
Automotive Technology Summit
THE ADAPT: AUTOMOTIVE TECHNOLOGY SUMMIT IS A THREE-DAY EVENT PROVIDING SHOP OWNERS AND OPERATORS WITH A UNIQUE, UNMATCHED OPPORTUNITY TO LEARN DIRECTLY FROM INDUSTRY LEADERS ON THE MOST PROGRESSIVE AND PRESSING TECHNOLOGY TRENDS DISRUPTING THE AUTOMOTIVE AFTERMARKET
DECEMBER 6-8 • NASHVILLE
EXPERIENCE WHAT ADAPT CAN DO FOR YOU A DA P T S U M M I T.C O M
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Covering the entire aftermarket industry with topics on legislation, repairability trends, training and the modern technician and much more. S I LV E R S P O N S O R S
22 fenderbender.com | June 2020
K E Y I N S I G H TS , TR E N DS A N D S TR ATEG I E S F O R TO M O R ROW ’ S I N D U S TRY—TO DAY A D A P TA U T O M O T I V E . C O M
A D A P TA U T O M O T I V E . C O M / F A C E B O O K
T W IT TE R .CO M /A DA P T_ AUTO M OTI V E
ADAPT Podcast
THE VEHICLE DOWNLOAD Are vehicles becoming immortal? ADAPT posed that question in a recent article that explores the increasing use of over-the-air updates in vehicles. The model was pioneered by the likes of Tesla, but now the major automakers are looking to roll out systems of their own as software becomes more and more integral to the modern vehicle. That means that the technology will land in shops before long. But how much can a software update really “repair”? Through software updates, the model of predictive maintenance, planned obsolescence and replacement of a vehicle is changing. Of course, there will always be a role for the repair shop. Structural and mechanical repairs can’t be done via a software update. But it’s just another way that vehicle design is rapidly changing. To read the article and learn more, head to adaptautomotive.com/immortal.
Don’t miss Editorial Director Anna Zeck’s twopart interview with Susanna Gotsch, who is an industry analyst with CCC Information Services. The organization recently released its Crash Course 2020 report, which draws from crash and insurance claim data to reveal a wealth of information on automotive trends, technology and consumer interaction. Part one dives into the ways trends will influence repair shops and how they can position themselves to thrive in the automotive future. Part two explores some of the cuttingedge transportation trends that could change the ways people interact with vehicles and, by extension, their shops. Listen to these and more episodes at adaptautomotive.com/podcasts.
GET T Y IMAGES
ADAPT Trend Report
DECEMBER 6-8 NASHVILLE, TENN.
Registration and hotel accommodations are now open for The ADAPT: Automotive Technology Summit. The full two-and-a-half-day schedule is available at adaptsummit.com.
Head to the ADAPT website to sign up for the ADAPT Trend Report newsletter to have the latest news, strategies and transportation trends sent to your inbox every week. adaptautomotive.com/newsletter
June 2020 | fenderbender.com 23
QUICK FIX
SNAP SHOP
CUSTOM CRAFT AUTO COLLISION INC.
1
BY GABE HOLZMER PHOTO COURTESY CUSTOM CRAFT AUTO COLLISION INC. LOCATION:
Santa Fe, N.M. OWNER:
Andrew and Robert Gallegos SIZE:
20,000 square feet STAFF:
26
AVERAGE MONTHLY CAR COUNT:
130
ANNUAL REVENUE:
$5 million
3
24 fenderbender.com | June 2020
Submit Your Shop
Proud of your shop and want to show it off to your peers? Tell us about it at
submissions@10missions.com.
1. CUSTOMER COMFORT From multiple TVs to a minifridge, hardwood floors to a stoney fireplace backdrop, the customer lounge at Custom Craft Auto Collision is a sweet spot to visit when waiting for repair work. The fireplace provides warmth next to the accordingly crimson chairs. Comfortable customers mean happy customers, according to owner Andrew Gallegos, a co-owner of the New Mexico shop. “No one likes to come to a collision shop, so we try to make it as pleasant as possible,” Gallegos says.
2
2. EMPLOYEES MATTER Gallegos emphasizes that it isn’t just the customers that are put at ease—amenities for the employees are a focus, as well. “Our employees are our most valuable asset,” Gallegos says. “They have their own break room, kitchen, bathroom, washer, dryer, and shower. Our shop is built for our employees. They include the best technicians in the area.”
3. UP-TO-DATE EQUIPMENT
4
Custom Craft Auto’s high-tech equipment is high-powered and state of the art, because Gallegos is always trying to stay on top of the latest and greatest in the industry. “Like the rapid infrared curing units in our paint booths, last year when they got installe we were probably one of five shops around that had them,” the shop co-owner notes. Gallegos is quite proud of the technical prowess on his shop floor as a whole. “It’s like a doctor’s office for cars. Every single stall has a lift in it, in-ground, so they’re flush down there… we have it all,” Gallegos says.
4. SPEEDY PRODUCTION Efficient production is another aspect of his shop that Gallegos is quite proud of. As a high-end production shop that works on cars like Mercedes, Lexus and Land Rovers, Gallegos understands the importance of keeping his operation well oiled. “Every single part is set up for production,” Gallegos says. “Everything is mobile, everything has wheels, everything can be moved to the vehicle. It’s set up to be as lean and efficiently as possible.”
June 2020 | fenderbender.com 25
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COLUMNS
THE BIG IDEA KEVIN RAINS
Get Into the Groove
Ease back into resuming your leadership role Our social skills are like muscles. If
we don’t use them, we lose them. As we come out of this season of COVID-19, many of us may not realize it, but our social skills have atrophied. We’re having less interaction with people than we once we did, with reduced staff numbers and fewer customers coming to our door. Personally, I’ve noticed that my skills at interacting face to face have weakened over the past couple of months of less workflow and more time working from home than normal. Little things, like my words not coming out quite right or my face-to-face interactions seeming shallower than normal. But with things starting to normalize, it’s time for me to hit the “emotional intelligence” gym and start flexing those social muscles again. To help get myself back on track, I compiled a list of five immediately actionable tactics—with a little help from some pop songs—that I can use to sharpen the saw of my social skills as things ramp back up to whatever the new normal will be. I hope you find them helpful, too.
MICHAEL HOEWELER, GETTY IMAGES
1. The first bit of advice is from ’90s pop-sensation Destiny’s Child: “Say my name, say my name.” People love to hear their own name. Make a special point to work people’s names into a conversation and you will definitely have their attention. Of course, this can be overdone. You don’t want to begin every sentence with their name. But working it into the conversation every so often is a great practice to keep people’s attention and communicate you care about them personally. 2. Have a ready-made, go-to question. Pop songs can help us here too, though not all of these are recommended: “How deep is your love?” “How will I know?” “Do you really want to hurt me?” (Can you name the artists?) Make sure your go-to question is open-ended and can’t be answered with a simple “yes” or “no”. This ready-made question is super helpful for when the other person isn’t talking much. It is a way to express real interest in them and also deal with any awkward
silences. Currently, my go-to is, “How has this pandemic affected your work life?” 3. Be vulnerable. The songs here are too numerous to mention. Many of them are super sappy anyway. However, being honest with our feelings is one of the quickest paths to developing a real connection. It’s also among the hardest. No one likes to be vulnerable. And we never quite know if the other person will reciprocate. So, it's best to start small. The personal effects of the pandemic are one way in here. We’re all enduring the effects. It’s an unprecedented time where we all share in some of the suffering, or at least the hassle of all of the hand sanitizer and masks! 4. Stay curious. It’s so easy to fall into the trap of having the right answer whenever someone faces a challenge, whether that is a customer needing an estimate or a co-worker needing some advice. But, how often do we rush to answer questions before fully understanding what the problem is or what is most important to the person in front of us? This is often how I’ve felt when dealing with doctors (surgeons, mostly), who never seem to have the time to let me unpack my questions or share things I think might be important. For them, it might feel like they’ve heard it all before and seen these symptoms a million times. But this was my first kidney stone, or hernia or whatever. Can we just take 5-10 minutes to check in on what I, the patient, might be wondering
about or feeling? Like Kelly Clarkson’s song reminds us: Don’t be a “Mr. Know It All.” 5. Slow down. Take the time to explain your decisions or why you’re requesting that bit of information. As an introvert, I’m prone to think that people can read my mind. I struggle to take the necessary time to explain things or provide context for directives or decisions that I’ve already made in my own head. Why don’t people just get where I’m coming from and do what I say?! Well, it’s likely because they have no idea all the thinking, research and reflection I’ve done up to that point to arrive at what now seems like a very logical conclusion. By slowing down and explaining the “why?” behind my decisions, I give others the needed time to catch up and embrace the decision. Simon and Garfunkel got it right way back in 1966 with their song, The 59th Bridge: “Slow down; you move too fast...” Just like going to the gym, we can try to do too much, too fast. Don’t overexert yourself with these simple exercises or try to do them all at once. If your shop has been slow or you’ve been away from your shop for any length of time, give yourself grace and time to get back into the groove of leading your team and caring for your customers. Maybe pick one of these each week for the next month or so and really dig into practicing them. Here’s to being the best leader you can be in the months ahead.
KEVIN RAINS Kevin Rains is the owner of Rains CARSTAR Group with locations in Cincinnati, Ohio, West Chester, Ohio and Lexington, Ky. He is also an industry consultant and founder of Body Shop 2.0.
E M A I L : kev i n r a i n s @ g m a i l .c o m A R C H I V E : f e n d e r b e n d e r.c o m /r a i n s
June 2020 | fenderbender.com 27
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Assembling a Game Plan
Yes, the coronavirus pandemic has brought about unprecedented change. Not only do the TV news and social media reflect that, but, likely, so does your business’s bottom line. Change is never easy … particularly when it leaves consumers largely “sheltering-in-place.” But now is not the time for a woe-is-me attitude, according to collision repair experts. Actually, quite the opposite. It’s time to seize the moment. And the following few pages were designed with that in mind—how to offer you guidance on not just soldiering through the COVID-19 pandemic, but emerging from the other side in a position to thrive.
Current Realities
To date, the coronavirus outbreak’s path of impact has been rather inconsistent. Shops in locations like Alaska and Montana have actually enjoyed a backlog of work in recent weeks. Conversely, some shops in the southern U.S. have gone weeks between scheduled repair appointments. According to Focus Advisors Inc., by late April, sales at shops across the country were down 30–60 percent on average.
Dan Risley, CCC Services’ vice president of quality repair and market development, noted that U.S. auto sales are dropping, and “the number of miles driven continues to fall.” Of course, it isn’t all doom and gloom. In that same April teleconference featuring Risley, this spring, parts delays have been minimal throughout much of the country, for instance. Nevertheless, what lies ahead is largely uncharted territory. Traversing it will require careful planning.
Risley began his collision repair career nearly three decades ago, at a familyowned shop. Yet, even with all those years under his belt, he’s dealing with new experiences ceaselessly these days. “Today, I needed to get a prescription filled, and my allergist reached out to me, said their office is closed, but they’d be willing to do a Zoom, online doctor’s appointment,” Risley noted during a recent CIECA webinar. “And those are the sorts of things that, in the collision repair space, I think will carry forward once the pandemic is over.” Risley says body shops are implementing the following procedures with encouraging results: • Providing a contact-free customer experience • Increasing user technology • Collecting electronic authorization signatures from customers • Staggering employee shifts and break times Yes, some of those measures include mild inconveniences. Yet, implementing such changes is neither painstaking nor, in most cases, costly. Burl Richards, the president of the Auto Body Association of Texas, is a collision repair lifer. He proudly operates four collision repair shops in eastern Texas and northwestern Louisiana. But the COVID-19 pandemic has left him calling on every bit of expertise he has to keep customers rolling in. “As a business owner, it really tries you,” Richards says. “And that’s good, because it makes you come up with contingency plans.”
COURTESY JEFF PEEVY
LESSONS FROM 2008
JEFF PEEVY IS THE PRESIDENT OF THE AUTOMOTIVE MANAGEMENT INSTITUTE AND THE CHAIR OF THE COLLISION INDUSTRY CONFERENCE (CIC).
If Jeff Peevy were a shop operator today, he would fight the urge to succumb to paralysis by analysis. He witnessed shops do that during Great Recession in 2008, and it proved costly. In that respect, the coronavirus outbreak—while unprecedented—offers similar opportunities. “During that recession we saw a lot of shops where all they could focus on was the negative of customers not coming in,” recalls Peevy, who served as a shop manager early in his career. “And, there were those that, as a team, thought about, ‘What is
it we can do that will make us stronger when this is over?’ Some shops really took advantage and did some reconfiguration of their shops … technicians suggested reconfiguring the flow, so they could keep cars moving in a linear process through the shop.” In the months ahead, maintain proper perspective. “It’s so easy to just get paralyzed and stare at the front door, waiting for that customer to come in, and get depressed over it,” he says. “It’s a time to reflect on how things work for you, and to think through” your processes.
June 2020 | fenderbender.com 29
FE ATURE
UNCHARTED TERRITORY
At shops like Burl’s Collision Center in Henderson, Texas, Richards has had his staff work split shifts, with the first unit rolling in at 6 a.m. Dedicated employees, loyal customers, and a hail storm or two left Richards’ business very close to its typical monthly car count in April, as he ended the month with 102 jobs in work in process. In Bluffton, Ind., Loren’s Body Shop avoided any layoffs thanks to owner Greg Lobsiger’s multi-pronged approach to the economic downturn. And his tactics have worked, as his shop remains on target for its yearly goal of bringing in $3 million in revenue. Throughout much of March and April, Lobsiger had his staff focus on the following: • Consider taking on unique new jobs, such as restoration (his staff even applied clear to a local business’s fiberglass statues of Elvis and Marilyn Monroe) • Utilize new marketing tactics, such as digital advertising like geofencing • Strive for upsells, as well as maximizing the pay received for every operation • Focus on training As far as the owner himself, Lobsiger has focused on new projects like adopting a mobile estimating app and, more than anything, trying to remain upbeat. “There’s so much to the power of positive thinking,” Lobsiger says. “If you think it’s bad, and that no (customers) are going to come in, then you don’t try to figure out things you never would’ve done before, like new marketing campaigns. Because you’ve just got the attitude that, ‘We may not make it.’
Easing Concerns
At Joe Townsend's body shops in Michigan, the staff is taking extra steps to disinfect vehicles prior to delivery, as well as utilizing PPE.
“But staring out the window, waiting for somebody to pull in, that’s worthless; You’re not going to accomplish anything doing that.” Meanwhile, in southwestern Michigan, Dunshee Body & Frame owner Joe Townsend is trying to roll with the punches. “I never imagined this,” says Townsend, whose shops typically produce $7.5 million in annual revenue. “We were rocking and rolling.” Townsend’s business has survived the coronavirus crisis by shifting its focus to
more technological-based customer service than ever. “We’ve got to shift our focus,” Townsend says. “Customers these days want that. So, have a texting feature on our website. Share posts on social media—we made a 30-second video clip on Facebook, showing how, when a vehicle comes in, we’re spraying it down with disinfectant, and employees are wearing gloves and masks.” Townsend lost some business in the early spring. But he didn’t lose his spirit. “I’m hoping, by the end of June, to
1. Perform spray booth maintenance. Take care of issues like caulking seams, for example.
MIKE ANDERSON IS THE CEO OF COLLISION ADVICE AND A 2019 INDUCTEE INTO THE HALL OF EAGLES COLLISION REPAIR HALL OF FAME.
30 fenderbender.com | June 2020
2. Chase down receivables. “If you have outstanding receivables, that’s like free money to you,” Anderson says. “So, go into your management system, find any receivables that are owed to you, and chase those, as well as any outstanding parts credits.” 3. Build best practices. Prior to the COVID-19 crisis, Anderson says “lots of shops weren’t paying
attention to something that I think is very important from this day forward, and that’s capture rate. …. I believe what’s happening now is this is going to force everyone to build best practices that will benefit them in the future.” 4. Keep calm and carry on. “I believe what the coronavirus is doing right now is giving us insight into what our industry would’ve looked like 20 to 30 years from now. … I think it’s exciting times ahead,” he says.
COURTESY DUNSHEE BODY & FRAME, MIKE ANDERSON
MIKE ANDERSON’S TOP 4 DOWNTIME TIPS
be back up to 100 percent,” Townsend says. “I’m starting to see some encouraging signs. I’ve seen an uptick of phone calls. “I think people are starting to see the light at the end of the tunnel.”
Glimmers of Hope: Marketing Opportunities
Where others see uncertainty and despair, Nick Schoolcraft sees opportunity. “My neighbor was telling me the other day, he hasn’t filled up his car in almost 6 weeks,” recalls Schoolcraft, president of Phoenix Solutions Group, a firm that helps body shops market themselves. “People aren’t driving. The car’s just sitting there. … And that would be the perfect time for someone to come in and get a repair.” Schoolcraft suggests that body shop owners ramp up their marketing efforts during the COVID-19 pandemic. “You’re marketing to an established base,” Schoolcraft says, so “it’s a lot easier, and a lot cheaper” than usual. Now, he adds, is the time to be proactive and interact with customers more than ever. As long as a body shop staff shows empathy for customers, there’s no reason a shop has to limp through the rest of 2020. In fact, Schoolcraft feels that, if you take a handful of key steps, they can actually position their business for a surprising amount of success right now. STRENGTHEN CUSTOMER TRUST.
“Think about what’s going on today, and the level of stress that’s happening,” Schoolcraft says. And, he adds, that air of uncertainty among most consumers lends an opportunity for shops to position themselves as businesses that truly care about their customers. “Customer loyalty isn’t just checking boxes,” Schoolcraft says. “It’s driving a deeper, and more meaningful, connection. And, right now, is the greatest opportunity for body shops to do that.” USE DIGITAL TOOLS.
“I think what we’re seeing in our world today,” Schoolcraft says, “is that the way we interact with customers on a daily basis is completely different. It’s very little human interaction.”
Consumers seem to welcome fast, painfree correspondence with businesses. “What you’re seeing is a digital transformation being sped up as quickly as possible,” Schoolcraft says. “Invest now in your digital presence.” Schoolcraft suggests body shop owners focus on investing time and/or money in improving these digital elements: • Virtual estimating tools • The shop’s online listings, noting elements like current hours of operation • Make sure keywords are associated with your website’s various pages CREATE GOODWILL.
Any interaction with customers in the weeks ahead should include an air of sympathy. After all, many Americans have felt the effects of furloughs, layoffs, or the weakened economy at large. “It should be less about driving people to you,” Schoolcraft says, “but more about what goodwill you’re providing, or what type of nuanced service that you’re going to start offering people, just to make sure they’re safe.” RECONNECT WITH PAST CUSTOMERS.
Seemingly more Americans than ever are working from home. It’s a great time to take advantage, reach out to old clients via text, emails, or phone calls, and get them to cross items off their todo lists. “You already have a captive audience of people who are aware of the type of repairs you provide,” Schoolcraft says. “Now it’s critical that you inform them of the difference that you’ve installed into your (customer) experience.” PLAN NOW FOR THE FUTURE.
Schoolcraft says to truly research your customer base via CSI surveys, to gauge what services they’ll demand in the years ahead. He strongly suspects that services like the door-to-door delivery of vehicles are here to stay. “If you’re not planning today, you’re going to be flat-footed when we actually come out of this,” Schoolcraft says. “How can you, as a body shop, really drive relevance to the customer? The only real way is by doing research on that customer. … And, if you’re not doing that, my suggestion would be to start.”
A HELPING HAND ONE OREGON SHOP OWNER AIDED THE FIGHT AGAINST COVID -19 AND GARNERED POSITIVE PUBLICIT Y IN THE PROCESS BY GABRIEL HOL ZMER
Due to the outbreak of COVID-19, face shields have been in extremely high demand. It’s become a battle for resources. So how can we fulfill the need? Bret Bothwell heard about the shortage and immediately took steps to remedy the issue. With the help of his employees and his mother, Central Auto Body decided to make face masks to donate to the Portland, Ore., medical community. Before they knew it, however, the endeavor became much larger than they expected. Something from Nothing As coronavirus cases worsened, so did Central Auto Body’s car count. It dropped quickly and employees were left with nothing to work on. Despite his lack of experience in the mask-making business, Bothwell pushed himself to learn about it and start making a difference—and put his employees to a good cause. To start, he asked his building coordinator to start making shields since there weren’t enough cars to warrant using both of their main buildings. They sanitized the area, put up tents and lights, and started producing masks. They got a system going, and the crew was even taught professionally how to do assembly-line production. Soon enough, they were making about 600 shields per day. Bothwell started a GoFundMe page in order to purchase the shield supplies in bulk, but otherwise has donated all the masks for free. One Good Turn After starting with the medical centers nearby, Bothwell expanded his reach and gave masks out to local businesses as well, like grocery stores and hardware stores. Although he didn’t intend for his work to draw in business, he expects it will happen anyway. “Doing the right thing will help over time,” Bothwell says. “At some point, people will need our services, and they will hopefully remember what we did.” Bothwell intends to reach a goal of 10,000 masks produced. He also says he’s open to helping any shop operators who wish to pursue something similar. June 2020 | fenderbender.com 31
WHY SHOULD YOU ATTEND THE FENDERBENDER MANAGEMENT CONFERENCE?
I love being in an environment where I’m not the smartest
person in the room; where I can learn from other experienced operators. The benefit of
attending the FenderBender Management Conference
is simply being able to rub
shoulders with people who have been doing this for longer and
have exceptional ideas to share.
KEVIN RAINS • Conference Speaker, 2020 • Owner, Rains CARSTAR Group
32 fenderbender.com | June 2020
September 14–16, 2020
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STR ATEGY
IDEA SHOP
Turning Technical
How to modernize a shop’s employee handbook An employee handbook symbolizes the heart of a company, Jim Siegfried says. A handbook serves as a guide for staff members, explains the president of Crystal Lake Automotive in Lakeville, Minn. It can be a valuable reference when a manager or an owner is not available to answer a question, for example. Siegfried’s employee handbook began as a simple document in the 1980s and eventually evolved into a Microsoft Word file. Now, the handbook is also located on the shop’s main server because of its extensive length: 27 pages. Uploading the handbook into a digital copy made it easier for the staff to search for any areas in the book and made it a faster process when it came to updating the file regularly. In order to move the handbook online, Siegfried took the hard copy pages and scanned them into a computer. Now, through Sharepoint, the handbook link can be shared with anyone as long as they have an internet browser. Not only has Siegfried’s employee handbook gone digital, he’s also had to update a few policies to incorporate the evolving changes in technology over the years. When done correctly, an employee handbook should answer any question a staff member has about a business. A handbook is essential because it’s the company’s guiding employee principles, says Tony Lee, vice president of editorial for the Society of Human Resource Management. He says factors like the length of the book should be determined by the content going into it. After all, if someone had a term paper due, the paper could be 3 or even 10 pages based on the background information and research.(See Sidebar: Lee’s Handbook Advice) Below, Siegfried shares how to set up an employee handbook to accommodate modern technology.
Digital Transformation
HR EXPERT TONY LEE OFFERS ADVICE FOR IMPROVING A SHOP'S STAFF HANDBOOK Tip: Any time a rule or policy changes in the shop, the handbook should change. A good example is if a state law has changed, like one on which questions can or can’t be asked legally in an interview. Tip: An owner can download tools like the SHRM Employee Handbook Builder to use as a template for an online handbook. The owner can create a handbook on a computer and host it on a server to have available for staff on the web. Tip: No matter what format the book is in, have a way to track if the employee saw the book, read the book, and signed the book. Tip: Give the employee a link to the digital handbook that has a tracking mechanism to track when the employee has read the book and signed it electronically.
AS TOLD TO MELISSA STEINKEN
Making it Digital
I have a shop that not only does collision repair work but also performs mechanical repairs, and we have an administrative department. I created only one handbook for all of these departments so that the rules are streamlined. Think of the handbook as a mission statement for your business. It’s a place everyone can go to find the company’s rules and values. I recommend updating the book every year, or at least every other year. The digital copy of the handbook is located on the company’s main computer server and is automatically updated every night. When updating the book, I’ll sit down with my management team, which includes me and the three other partial owners of the shop. The other owners are the body shop’s owner, general manager and estimator. These meetings take about an hour to complete. We’ll also always have an attorney take a look at the employee handbook
and approve the changes we made. This is a very important step because a lot of the changes are made in areas regarding employment law. Then, we have a back page of the book ripped off as a document for the employees to sign off that they’ve read the material. We put that signed sheet of paper into each employee’s file.
Updating Policies
Make sure to include topics like employee time off, vacation policy, and what’s not acceptable in the facility itself. For example, it should include employees’ rights laws and how to handle employee complaints or events internally. As years passed, I did have to add more content to encompass the changes in technology. For instance, we now have two new policies in our digital handbook: social media policy and a cell phone policy.
Social Media
Today, a lot of people can get carried away
by social media and pull out their phones frequently. We had to create a policy that encompassed rules like when not to post photos of cars in the shop and how to respect personal and professional boundaries. The staff cannot take photos of cars and license plates, and of other employees.
Cell Phone
There is a gray area to consider with all of the photos needed to be taken for proper documentation of the car during disassembly on the collision repair side. Our policy makes sure that while the technician is working, he or she is not allowed to use their cellphone but they can take the occasional personal call. If they take a personal call, they have to stop working and go outside or to the break room.
Technology
Due to updates in software, we added a technology policy. This included details on sharing passwords and how to use the various software in the shop. June 2020 | fenderbender.com 37
STR ATEGY
CUSTOMER SERVICE
Improve Your Work Capture Ratio How to ensure that your shop is converting on every customer visit possible
The role of a body shop estimator has
evolved immeasurably in recent years. Steve Trapp knows that better than most. Trapp, the North American strategic accounts manager for Axalta, started one of the first value-added body shop programs 30 years ago. And, in his experience, capturing body shop customers nowadays might be harder than ever. “It used to be that body work was done largely by people that were very good with their hands,” Trapp notes. “Now, 38 fenderbender.com | June 2020
you still have to have that still, but you also have to [learn] accident-avoidance systems, recalibrations, electronics. It’s very different now for estimators.” Longtime Pennsylvania shop operator and consultant Ron Perretta agrees. He feels it takes a careful, well-considered approach to win over the vast majority of collision repair customers these days. “I don’t care what type of business you’re in, you have to position yourself in
your market, create a niche, or become a commodity,” says Perretta, the owner of Professionals Auto Body. “If a shop doesn’t have a good product in the eyes of the consumer, and if you aren’t on their side in the eyes of the consumer, closing the sale is difficult.” In order to post a great work capture ratio, shops must take the following steps.
Understand the math involved.
While Perretta no longer has his
GETTY IMAGES
B Y K E L LY B E AT O N
• Capture ratio: Number of ROs divided by the number of estimates written • Total closing ratio: Money from ROs closed divided by money from estimates written • Customer paid closing ratio: customer paid ROs divided by number of customer paid estimates • DRP/dealer/fleet closing ratio: DRP/ dealer/fleet ROs divided by number of DRP/dealer/fleet estimates
Watch your tone.
When trying to convert today’s body shop customers, it’s important to remember that, most likely, they haven’t been in an accident in nearly a decade. And vehicle technology, obviously, has evolved by leaps and bounds since then. Because of that evolution in technology, potential customers require a bit of hand holding when they first arrive at a body shop. “If you can become the consumer’s advisor, and your tone becomes advisory instead of selling, you’re going to have more success,” Trapp says. “First [ask customers], ‘What are you hoping to accomplish on your car, and what are your personal needs?’” When initially conversing with customers, Trapp suggests that shop staffs focus on the following: • Actively listen, by speaking with the customer at length before even approaching the customer’s vehicle. • Avoid using jargon and automotive terminology that someone outside of the industry is unlikely to understand, and explain acronyms like “ADAS.”
Offer multiple options.
employees write estimates, historically his staff produced capture ratios around 75 percent, which is widely considered a solid benchmark. But before fellow shop owners can achieve such a performance metric, they must first grasp how to monitor it. And capture ratios, in essence, can be monitored multiple ways. Depending on the type of work a body shop often sees, such as fleet work, staff members may want to perform the following calculations:
One thing hasn’t changed about vehicle owners over the years: few of them possess intimate knowledge of their insurance policy. That’s why Trapp feels it’s imperative for shop staffs to explain the financial implications involved with most repair work. And, he suggests accomplishing that by presenting each potential collision repair customer with all of the available options at a shop. Trapp thinks of it as presenting customers with “packages.” “Let’s take a typical RO—say a $2,500 repair, on the borderline of customer-pay versus insurance-pay,” Trapp says. “The
first thing we have to do is educate a customer on how to make that decision. So, we could say, ‘OK, based on what I’m seeing today, this is definitely more than your deductible, and the cost of your insurance is going to go up by generally 15–20 percent if you report that claim.” In general, Trapp suggests presenting customers with the following options upon arrival to a body shop: • Claim, no claim: First, determine if a customer wishes to make an insurance claim. • While you’re here: Inform customers of work your shop can do relatively quickly, while they’re on-site. “Say, ‘Hey, I’ve got the paint in the gun, the car’s in the booth, I’ve washed it, and I’ve got a repair order going,’” Trapp says. “I can do parts of that repair a heck of a lot cheaper today if I can fix it while it’s here.” • Sell small jobs: If a customer clearly looks like they’re driving an otherwise well-maintained vehicle that they take pride in, Trapp suggests body shop staffs attempt to make additional, small sales such as detail work.
Don't forget to follow up.
In Perretta’s experience, persistence with consumers pays. For instance, his shop once made an informational CD that it gave to customers who decided to take their business elsewhere, and then the staff eventually followed up with those consumers to ask if they had any further questions. More than once, those individuals eventually gave Professionals Auto Body their business down the line. Similarly, Perretta has his staff provide customers with the following: • Daily updates on repair work, even noting the progress of how their insurer is handling their claim. • A delivery closing in which customers receive a thorough explanation of all work that was done on their vehicle, including elements like the maintenance of the paint. • Taking small, extra steps like that, the longtine shop owner says, “helps turn customers into a sales force for the future.” June 2020 | fenderbender.com 39
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COLUMNS
PROCESS DRIVEN R YA N C R O P P E R
Tips for Improved Throughput How to achieve stellar work flow on your shop floor In mid-March, during the height of
the coronavirus crisis, I noticed that a White House press conference touched heavily on the term “throughput.” The topic arose because U.S. officials were focused on fast-tracking testing capabilities for COVID-19. That serves as an example of how valuable efficient throughput can be. Of course, if you’re in the body shop business, you’re well aware of throughput’s importance. Great throughput can boost your monthly car count and aid your bottom line. Conversely, poor throughput can leave your shop’s painters, for example, feeling overwhelmed. If you ask me, achieving solid throughput in a body shop comes down to a staff taking a handful of steps. Those key steps are as follows.
Schedule carefully.
The first key to great throughput is figuring out your shop’s repair scheduling. If you’re overscheduled or underschedule, both can affect throughput significantly.
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Batch your work.
Next, you need to watch how work flows through your shop. We call it “batching work.” It doesn’t help for body technicians to keep sending cars to paint if the painters are completely backed up. They’d be better off focusing on, if you’re in a team environment, either helping the painters get caught back up, or concentrating on reassembles so that the painters can catch up before you’re sending them more work. Because, if you just keep sending, sending, sending work, then problems
start to pile up on the shop floor. We’ve had times where our painters are backed up with almost 30 cars that need to be painted. And my response to my technicians then is, “Why are you sending more cars to the paint department when they’re that far behind? You’re not helping the problem when you do that.”
‘Pull’ together as a team.
Throughput is better when the work is being pulled rather than when it’s being pushed. We want the scenario to be such that the paint department just got done with a vehicle, and now the body tech is going to send them another one. The more you can concentrate on pulling work rather than pushing it the better off you’ll be. To focus on that, you have to create somewhat of a team environment. Move your people to where the bottleneck is—for a week, a day, or even a half hour, depending on how bad the bottleneck is. The more resources you can move to a shop bottleneck, the better your throughput will be.
Monitor shop metrics.
To help with throughput, we look at how many ROs are closed per day. And, we have goals per location. We also look at how many booth cycles are done per day. We aim for 10 ROs closed every single day, and we want 100 cars out of that location every two weeks. We watch to make sure that we’re averaging that. If we start to fall behind on those goals, then we know we probably have a problem with our scheduling, or in the way we’re moving the work from department to department.
Address issues early.
It’s important to work with your admin staff to identify any throughput problem early on, and to quickly make adjustments. Show employees how, by pulling the work in rather than pushing 10 cars at once to another department, you’ll get more cars done faster. It’s a lot of coaching, it’s a lot of just training and talking, and letting it soak in to employees. Your core group will likely catch on fairly quickly, to the point where they’re automatically moving themselves to help address a shop bottleneck.
RYA N C R O P P E R is the owner of Able Body Shop, with four locations in Anchorage, Alaska, and Total Truck Accessory Center.
E M A I L : r c r o p p e r @ ab l e b o d y s h o p .c o m
June 2020 | fenderbender.com 41
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STR ATEGY
CASE STUDY
X TREME MAKEOVER Streamlining supplement ordering took Xtreme Collision Center to the next level BY MELISSA STEINKEN June 2020 | fenderbender.com 43
STR ATEGY
CASE STUDY
The Backstory Adam Grant is no stranger to repairs and thus, unexpected damage that comes along with repairs. He has more than 25 years of experience in the collision repair industry. Throughout the years, he knows that, when it comes to vehicle damage, what might have appeared to be a two-hour job can turn into a week-long repair if a shop staff is not careful. Supplements happen. But, any shop operator’s goal should be to keep the supplements as low as possible to reduce interruptions in business and save on time and money. After all, if a customer was at a coffee shop and the coffee shop ran out coffee filters to make drinks, the customer would find it unacceptable when asked to wait for the staff to order more. Grant says you should be writing at least 20 percent of sales weekly in supplements. “If you’re not, you’re leaving money on the table,” he says. At Xtreme Collision Center in Morrisville, Vt., the supplement rate is between 25 and 30 percent. Grant says that, due to his body shop’s unique location, he had to figure out a process that could ensure as little time was wasted in ordering additional parts on a supplement as possible.
XTREME COLLISION CENTER OWNER:
ADAM GRANT LOCATION:
MORRISVILLE, VT. SIZE:
5,600 SQUARE FEET STAFF:
10 (4 BODY TECHNICIANS, 1 PAINTER, 1 PARTS MANAGER, 1 FRONT-END ESTIMATOR, 1 CSR, 2 OWNERS) AVERAGE MONTHLY CAR COUNT:
125
ANNUAL REVENUE:
$2.4 MILLION
44 fenderbender.com | June 2020
Grant opened Xtreme Collision Center in 2004 with his wife, Amy. The first year in business, the shop produced approximately $400,000 in annual sales and now, 16 years later, it produces $2.4 million in annual revenue. Grant measures the supplement rate differently than other shops. He watches his supplement figure because he wants to make sure that the figure represents a certain percentage of what the team is getting done for the week. If the supplement figure is not high enough it means the shop didn’t capture everything or is not charging enough for labor. “I’m sort of a numbers guy, like a lot of shop owners,” he says. “I shoot for 15, if not 20, percent of sales weekly in supplements.” For example, the team might write a $2,000 repair order and then, after the blueprint process, will find additional damage. The team writes supplements from the original estimate in order to find all the damage and turn that $2,000 repair into a $2,500 one. Supplements have changed over the years, of course, with the introduction of photo estimates into the repair process. That forced Grant to react accordingly.
The Problem
Xtreme Collision Center is in a remote area, which makes it more difficult to get the parts needed, Grant says. “In a lot of facilities, you can take the parts order, order the parts and get the parts all at once,” Grant says. “In my facility, we’re in a remote area so we have to pre-order the parts and get most of the parts there and then order the supplement parts.” In order to get the right supplemental parts, Grant says the team needed to form a way to check the parts correctly to make sure the parts they had were not being ordered twice. Grant’s process today is very different than 10 years ago, he says. Back then, the insurance company and the customer were more likely to come into the shop and just say, “OK, send me a bill when it’s done.” “It’s not like that anymore,” Grant says. “Even being a preferred shop for a number of insurance companies, they want to know as we go what we’re running into.”
And, once the supplement gets delivered at the end of the repair, it can be another daunting task to get paid for the work being done.
The Solution
For the body repair process at Grant’s facility, the car now gets checked into the shop and goes through a blueprinting process. Once the car is checked in, Grant’s team follows these blueprinting steps: 1. The team will walk around the car with the customer and then the car goes to the wash bay to be cleaned and sanitized. 2. Once the car is out of the wash bay, the estimator will mark up the vehicle with a pen and try to complete most of the supplement at this point. 3. The car goes to the body shop f loor where the team performs a 100 percent teardown, reads repair orders and check-in parts through mirror-matching parts based on photos. The supplement is finalized at this step. In his process, Grant has a technician or back-end estimator write the supplement, while the parts manager is the person getting the parts for the technician and the front-end estimator is the one typically going after the money to get paid for the supplement. At that point, the staff members go through all the parts pages and ensure they can dig up as much information as possible regarding supplements. A critical part of the process is for the team to talk about the type of damage and sort out from where it originated. For hits like deer hits, the flow of damage is more easily seen, he says, but if the damage seems like it was from a blow left to right, for example, then Grant and his technicians iron out where the hit started and where it ended to make sure they don’t miss an area of damage and thus, a part needed. The team gets the proper authorization from the insurance company and the parts manager orders the final parts. These days, the team has to have several supplements to give to the insurance companies to keep them updated rather than one large supplement in the end.
Between doing the supplements and making sure the body shop is paid, Grant says it’s seemingly a fulltime job, with a technician devoting 25-30 hours per week. That number depends on the size of the shop, though, he says. For a two-person body shop, it could take a shorter amount of time. Grant has over 10 people in his body shop. “The one thing I would preach is, is to get information up front as quickly as possible,” Grant says. “A lot of times, guys will get a car in and want to start working on it and the last thing they want to do is fool around with the supplement or mirror-check parts.” Grant says it is absolutely critical for a technician to blueprint the car and mirror-match the parts. Take time to find the required parts for the job, including small ones like clips.
The Aftermath
Grant says it can be hard to get out of a rut and change a process that’s been in place for years. But, he says change is a good thing and can make the entire repair easier. “It’s not about getting the car done as quickly as possible,” he says. “It’s about getting paid for what we do as shop owners.” Grant discovered that having the right tools in the shop can aid in reducing supplements. A shop needs a good work station, estimating software close, computerized measuring and a really good management system to track and order the parts. There should always be clearly laid out damaged parts that can be documented with a camera.
The Takeaway
“We try to eliminate supplements as much as we can, but sometimes on a big job you think you have everything and then you start putting stuff back together and run into other things,” Grant says. “It’s an ongoing process.” Grant says that it can still be a challenge to reduce supplements because cars are built differently today than before. They’re more or less built to collapse, he notes, which could make it harder to get to the root of a vehicle’s damage. June 2020 | fenderbender.com 45
STR ATEGY
LEADERSHIP
Leading with Your Best Self
Focusing on yourself as a leader lets you be more engaged with staff BY MELISSA STEINKEN
Employees notice when a leader doesn’t
46 fenderbender.com | June 2020
ADVICE FROM THE EXPERTS FENDERBENDER RE ACHED OUT TO THREE BUSINESS E XPERTS WHO HAVE E XPERIENCE IN LE ADING SMALL AND L ARGE BUSINESSES.
The Expert: Barry Moltz Behind the Expert: Small business expert for Your Business Unstuck and past SEMA Show leadership speaker. He founded an angel investor group and is a former advisory member of the board of the Angel Capital Education Foundation. After leaving three businesses, Moltz realized he wanted to stop applying his experience and offer his advice to others. Leadership Takeaway: A leader doesn’t simply take on other peoples’ problems. Instead, a leader needs to offer a solution or a way for the team to come together to solve a problem. The Expert: Michael Bungay Stanier Behind the Expert: Michael Bungay Stanier is author of two leadership books, including The Coaching Habit and The Advice Trap. In The Advice Trap, he shares guidance on how leaders can curb the advice monster inside of them and deliver pinpointed questions and advice. He is also the founder of Box of Crayons, a company teaching how to lead in 10 minutes and coaching that sticks. Leadership Takeaway: Remember to keep asking yourself and reflecting on how the day can be a good one for yourself. If you have the right attitude from the start, it will radiate to other people. The Expert: Harrison Rusk Behind the Expert: Harrison Rusk spent ten years in the Marine Corps and went on to assist his family in the family business of collision repair. He’s a second-generation owner and operator. He came on board to help the family while his dad, Byron, moved closer toward retirement. In 2014, he was made general manager of the business. Rusk sees a leader that maintains a work-life balance as one that is a happier and more fulfilled leader. Leadership takeaway: Accept that there will never be a perfect balance. Leading a balanced life means creating the environment you can control.
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show up for a day. Sure, the leader might be present physically and ready to work, but when the one in charge doesn’t come to work mentally, the effects trickle down. Leadership is harder than most people think, says Michael Bungay Stanier, author of The Coaching Habit: Say Less, Ask More & Change the Way You Lead Forever. After all, a person in charge not only has to deliver orders to a group, assign tasks and make sure the tasks are running smoothly, he or she also needs to motivate their staff. And, the truth of the matter is that most leaders are so busy, with several responsibilities to juggle, that it leads to people not thinking about how to show up for others. “Are you leading with a carrot or a stick?” asks Barry Moltz, small business expert for Your Business Unstuck, Moltz’ small business consulting firm. The two approaches to leadership are drastically different. Leading with a carrot incentivizes good work with rewards while leading with a stick prioritizes punishment to push people toward goals. The best kind of leader is one that shows up every day and puts their best self and effort on display. For example, a genuine leader is one that is aware of
2. How much risk do I want to take today? 3. How much do I care about the experience of the people I’m working with? Ask yourself what can make your approach bolder and more courageous. He then says to ask yourself what will make your great work move forward.
Leading with Separate Interests
his or her responsibilities, takes action for those but also takes time for self-improvement outside of work hours. Harrison Rusk, managing partner and general manager of Master Car Care and Collision in Houston, Texas, says he recommends a strategy of unplugging so that a leader can “tune-in” and be more present when leading the team. Rusk is a leader that is known for encouraging staff to leave right on time to enjoy free time at home. Stanier, Moltz and Rusk share their tips on how you can lead with your best self.
Leading with a Larger Purpose
Barry Moltz, a small business expert for Your Business Unstuck, says in order to lead with your best self forward, a leader needs to take a step back and look at the big picture. Focus on the company’s mission, above all else. He says it’s important to think about why you’re in the business as a leader and reflect on why you are taking the actions you are. For shop operators who have yet to find their personal leadership styles, Moltz recommends trying out different leadership tactics and eventually sticking with the one that feels like the best fit. To find a leadership style, he says to ask these questions:
1. What pain point do you personally solve for customers? 2. What difference are you trying to make? 3. Why are you performing this type of work? Moltz also recommends leveraging the team you have so that you don’t get weighed down by every responsibility as the leader.
Leading with a Consistent Focus
In order to genuinely lead, Stanier says a shop owner must think about the strengths he or she has, amplify those strengths. and then focus on dealing with their weaknesses. “For instance, I’m good at the big picture items and being positive, but I’m less good at the little details,” Stanier says. “They bore me to death.” Most leaders are leading busy lives, he acknowledges. Regardless, if every leader were to take a few minutes each day to reflect on how they can focus on that particular day, they’d be exponentially more present, the leadership expert adds. Stanier recommends asking yourself these questions before the day begins. He says to rate yourself on a scale of 1–7, with 1 being low and 7 being high. 1. How active and engaged do I want to be today?
In order to excel when staying present with staff, a leader needs to take time away from work all together. With technology present in every aspect of a leader’s life, from work to home, it can be hard to turn off the work, Rusk says. However, he recommends unplugging from work so that a leader can be fully present in both aspects of his or her life. He recommends putting electronic devices on “Do Not Disturb” mode every night so family time is not interrupted. If necessary, he says to block off a specific time every night to check in on work-related emails. Be consistent with this practice. “From smart phones to email, webinars and the expectation to be always available, it can be difficult for us as owners and managers to focus our full energy to the things we care about,” Rusk says. He says to start with small habits and make sure to perform them every day. Small habits that are built upon can snowball into success. When a leader maintains a work-life balance, it breaks the routine and monotony of everyday life, and allows for the operator to engage the mind in ways that are not stress-inducing. “A happier life also means being more productive at work,” Moltz says. “Being a leader is a marathon, not a sprint.” While taking time away from work can be hard, Moltz says a leader needs to sit down and carve out the hours that are considered “work” time and the hours that are spent as “off hours.” He says to set specific hours for work and to make sure they don’t encompass all 24 hours of the day. Then, when the leader takes time off, he or she should shut off all devices and take time for an outside hobby or interest. June 2020 | fenderbender.com 47
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COLUMNS
IN THE TRENCHES STEVE MORRIS
The Subtle Art of Saying “No” Get more comfortable with the discomfort—and reap the benefits In recent columns we have explored
strategies to improve our time management skills, organizational skills, managing prioritization of tasks, and beating procrastination. We implement these strategies to improve our productivity and quality of life, but sometimes we still find ourselves caught up in a whirlwind of tasks and projects that don’t contribute to the outcomes and results we want. If you think back to one of the earlier columns on this topic, we talked about making note of all the things you do throughout the day to see where your time goes. What I am going to suggest now is that you complete that exercise again for a two-week period and document your activities in 15-minute intervals. However, this time, when you write down what you did, I want you to add some notes to indicate if this activity could have been avoided altogether had you said “no” to the task. Saying “no” is hard. We are conditioned early in life to view “no” responses as rude. We learn as kids that saying no is impolite and so, over time, we become people pleasers that don’t say no, even if it’s perfectly acceptable. Saying “no” may make you feel like you are rejecting the person, or you might feel like a bad person. What I have found is that when I say “yes” to someone when I didn't really want to, I end up being miserable and resentful. I also have learned that because I say “yes,” I do not have enough time in my day to work on the things I want to. So, how can we say “no” to our colleagues, friends, employers, employees, and family? Here a few tips for you to try.
up kicking ourselves for it. If someone has a hard time taking “no” for an answer, they are not being respectful of you and your time.
2. Cushion it with kindness.
You might feel more comfortable with a softer approach. Options include, “Thanks for thinking of me, but I have way to much on my plate right now” or, “I appreciate your time, but no, thank you” and, “I’m flattered that you would ask, but I’m not going to be able to devote the time to provide you with quality help you want.” When you speak to people this way, and are genuine about it, both of you will feel good about the outcome.
3. Ask for help in reshuffling priorities.
When your boss asks you to take on one more project that you don’t have time for, ask to talk about resetting schedules and deadlines for all your current projects. You can also tell your boss that you’ll start the new project when you finish your existing projects, but be sure to let your boss know your estimated time of completion.
4. Empathize and acknowledge.
Protect the other person’s feelings by saying, “I know this isn’t the answer you were hoping for, but no.”
5. I’m not comfortable with that.
When you are asked do something such as babysit a neighbor’s dog or loan a friend some money, it’s OK to say, “I’m not comfortable watching dogs” or, “I’m not comfortable lending money.” People can’t invalidate your feelings easily when your response tells them you are uncomfortable
6. I’m good.
I have a colleague that uses this a lot with salespeople. When he gets a pitch from a wireless carrier he says, “No, thanks, we’re good with our current provider.” You can use this also when you get cold called. One of the lessons I have learned about this whole topic is that you will need to practice saying “no.” In fact, you must proactively work on this skill because it is not natural for most of us. The more you practice this, the more conditioned people will become to hearing your “no” response and not take it personally. They become mindful and respectful of your time and will figure out ways to resolve the concern on their own, or will at least stop popping in on you and instead will request a meetup. Learning to say “no" is going to be very impactful for you. You will feel empowered, productive and in control.
S T E V E M O R R I S is the director of operations for Pride Collision Centers, a seven-location MSO located in Southern California. He is an Accredited Automotive Manager (AAM) and ASE-certified master technician.
NICK SPAETH
1. Just say “no.”
Seems obvious, but so often we say “not right now” or “not at this time” and this gives the asker wiggle room to keep asking until you say “yes.” Often, we also accompany our answer with excuses, which makes us look lame and we end
E M A I L : s t ev e m @ p r i d e au t o b o d y.c o m A R C H I V E : f e n d e r b e n d e r.c o m /m o r r i s
June 2020 | fenderbender.com 49
COLUMNS
OUTSIDE THE LINES JASON BOGGS
Strap on Your Boots
The COVID-19 pandemic is preparing shop owners for what lies ahead in collision repair
vehicles to repair? You could argue that’s a fair question, but I’d disagree. There are vehicles to repair these days. Claims counts are down around the country, but being down versus non-existent are two different scenarios. So, what can we do to be successful during these challenging times as the COVID-19 pandemic drags on? First, we can do something we should always be doing: marketing so that our shop is always top of mind as first choice for potential customers when it comes to collision repair. Over the last few years the collision repair pie was big, and it was easy to get a slice of it. But now the pie is even smaller, and some of us are dealing with crumbs. While the current environment is historically unique, most experts agree the collision repair “pie” is going to shrink over the next ten years. We just need to look at this time period as boot camp for dealing with what’s to come. What are you doing right now to stand out from your competitors? Have you clearly communicated that you offer contact-free estimates, drop-offs and pickups? Regardless of how you personally feel about this pandemic, there are people who are scared. If they need to get their vehicle repaired, they’ll choose a place that is taking this seriously and doing what they can to protect customers. Even for customers who think the pandemic is overblown, having safety procedures in place communicates to all customers that you’re professional and care about them. How about doing something to help out your community? Buy some lunches for front line workers. Donate PPE to establishments who are in need. Our shop 50 fenderbender.com | June 2020
bought lunch for our local grocery store employees and they were overwhelmed that someone thought of them. While we initially did it because we saw how fatigued they were, it turned out to be a great marketing tool. Caring for others always gets noticed. Anything you do to set yourself apart in your market will have both short- and longterm benefits. This isn’t a strategy to deploy only during the pandemic; this should be a part of your long-term success plan. Another way to set yourself apart in any industry is to be one of three things: the fastest, the cheapest, or the best. While our insurance partners would like us to be all three, that’s usually not sustainable. Domino’s Pizza became famous guaranteeing how quickly they could get your pizza to you. I listened to one of their executives speak about how poor their product tasted, but that wasn’t important to their core customer: college students. Similarly, McDonalds built an empire on cheap hamburgers and never postured themselves as the best hamburger. So, which one are you? Do you offer the fastest repair in town? How do you know? When was the last time you asked your insurance partners for some data so
you can see where you rank in keys-tokeys cycle time in your market? Do you offer the best repair in your area? Most of us think we do, but only one shop in each market can make that claim. Ask your sublet vendors where they would take their vehicle if it needed to be repaired. Even more telling, if you’ve never repaired vehicles for your sublet vendors, jobbers, etc. than you can pretty much surmise that you aren’t the best. As we all face our new reality, I would encourage you to do two things that will help you. Develop a marketing plan that helps you stand out as first choice for collision repair in your area. Secondly, determine how you can set yourself apart from competition regarding speed, pricing, or quality. Take advantage of the extra time you have, if you’re lacking vehicles, to involve your team in developing these strategies. If they are included in developing the strategy, they are more likely to take ownership and help maintain the details of the plan going forward. Whether your sales are down, up, or flat, you can focus your energies to ensure success in the current environment and whatever comes your way down the road.
J A S O N B O G G S is the owner of Boggs Auto Collision Rebuilders in Woodbury, N.J. He has attended the Disney Institute and Discover Leadership, and has studied lean manufacturing processes.
E M A I L : j a s o n @b o g g s au t o .c o m A R C H I V E : f e n d e r b e n d e r.c o m / b o g g s
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