FenderBender: December 2023

FENDERBENDER.COM / DECEMBER 2023

TOP TIPS FOR SECURING FLEET BUSINESS

PAG E 36

Strategies & Inspiration for Collision Repair Success

CREATING A LIFELONG CUSTOMER

PAG E 42

LEADING THE CHARGE

SMALL TEAM SERVICE

PAG E 4 0

FOR THESE SHOP OWNERS, LEADERSHIP STARTS FROM WITHIN PAG E 24

Building a Culture of Continuous Improvement Collision Leaders Owner Casey Lund encourages his staff to implement new ideas on their own.

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CONTENTS

DECEMBER 1 2 . 2 3

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V O L U M E

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N U M B E R

1 2

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LEADING THE CHARGE

For these two shop owners, leadership starts from within

BY JAY SICHT

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December 2023

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CONTENTS

DECEMBER

QUICK FIX

STARTER

9

DRIVERS SEAT

11

BREAKDOWN

SEMA 2023 revealed a vibrant event, breaking several records

Approaching expansion as an independent MSO

10

LIGHT HITS

PAST THE PAGE

More Shops Billing for Total Loss Processing

15

Report: lower total loss rate found for EVs, and much more

20

STRATEGY

36

THE SOP

36

Fleet contracts can provide steady work and stable income

38

MARKETING

Now more than ever, a strong digital presence is essential to compete in the marketplace

December 2023

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QUICK FIX

19

NUMBERS

Do you pay for employee training/ education?

20

SNAP SHOP

Dave Dunn’s business is more than just a repair shop; it’s an oasis

STRATEGY

COLUMNS

40

CASE STUDY

40

How one small shop maintains the right balance for production capacity

42

FINANCE+ OPERATIONS

Focus on customer and employee satisfaction to secure repeat business

23

SHOP PROFITS

Plan now for the success of your business and employees

BY G REG LOB S IG E R

50

COLLISION COURSE

How to plan a successful shop holiday party

BY TIFFANY ME NE FE E

52

DUE PROCESS

Evaluate your goals and make adjustments to pave the way for a successful future

BY DRE W B RYANT

December 2023

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CONTENTS

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Ford

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EDITORIAL ADVISORY BOARD

Jordan Beshears Steve’s Auto Body Sheryl Driggers Universal Collision Frank Rinaudo Frank’s Accurate Body Shop Jason Mundy Mundy’s Collision Center Stan Medina Certified Collision Works

SALES

asTech

Industrial Finishes

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AUTEL

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December 2023

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DRIVER’S SEAT

REFRESHED, RENEWED, RECHARGED SEMA 2023 revealed a vibrant event breaking several records

WORKING THE WEEK OF THE SEMA SHOW

is exhausting, with a packed schedule and the ever-present need to be in two places at once. But at the same time, it’s a recharge to see longtime industry friends and hope just some of their wisdom rubs off on me a bit. It’s a reminder of our industry’s significance. This year marked a return to what appeared to be pre-pandemic attendance numbers.

SEMA estimated the number of attendees at 160,000. Both the MSO Symposium, held down the strip at the Mirage Convention Center the day before the show opened — and the Collision Industry Conference (CIC), held on the first day of the show next door at the Westgate Las Vegas Resort & Casino — reported record attendance, with more than 300 MSO and more than 500 CIC attendees.

One of those industry friends, Casey Lund, was an MSO Symposium panelist, which took the pulse of four shop owners on what it takes to grow from a single location (check out my highlights of that discussion on p. 11). He, along with another industry friend and FenderBender Advisory Board member, Jordan Beshears, is also one of two shop owners I interviewed for our cover story of the month. In that article, “Leading the Charge,” Casey and Jordan, both independent MSO owners, talk about how they mold their staff to be more capable and responsible for their own success. The processes work well, and they’re able to replicate them in their other shops. If you own or operate a small shop, check out “Small Team Service,” on p. 40, for how Dennis Cataldo Jr., general manager of D&M Auto Body in Old Bridge, New Jersey, approaches the constraints of working within a small

December 2023

footprint. And although business is always like a funnel — in that you need to add new business to replace that which trickles out — there are steps you can take to help minimize that business loss. Check out “Creating a Liftetime Customer” on p.

42 for ideas you may not have considered.

Thank you to these industry leaders, including our monthly columnists, for sharing the insight they allow us to share with our readers, and thank you for being a FenderBender reader.

JAY SICHT

EDITOR-IN-CHIEF

jsicht@endeavorb2b.com

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VIDEOS

PA ST T H E PAGE

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PODCASTS

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WEBINARS

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NEWS

MORE SHOPS BILLING FOR TOTAL LOSS PROCESSING MORE SHOPS ARE BEING REIMBURSED for the steps involved in processing total losses, according to the most recent “Who Pays for What?” survey by Collision Advice and CRASH Network.

“Because the process has continued to become more complex and time-consuming, shops are increasingly billing for the time they spend processing total losses, and rightly so,” shop consultant Mike Anderson of Collision Advice said. “Of course, some insurers are pushing back. In some cases, insurers have turned to using bill collection agencies in an attempt to go after shops after-the-fact to recoup amounts paid. While the industry continues to discuss the best way to bill for this, from a legal perspective, shops should have an attorney review their authorization forms to ensure they are protected.”

In the most recent “Who Pays for What?” survey, only 7% of shops said they never seek to be paid for total loss processing.

That’s down from 14% a year ago, and far below the 30% of shops that never billed total loss processing fees in 2015. The percentage of shops regularly being paid for total loss processing by the eight

@fenderbendermag December 2023

largest U.S. insurers is also increasing. Eight years ago, just 46% of shops said it was something for which they were paid “always” or “most of the time” when billing for total losses, but today 75% of shops say they are.

“Rather than simply billing an ‘administrative fee’ for this work, we are seeing shops itemizing the steps involved, such as a repair plan fee, disassembly fee or OEM research time,” Anderson said. “With 93% of shops regularly billing for this added work, it will be interesting to watch how AI impacts total loss processing, identifying total loss vehicles earlier in the process, possibly avoiding many of these fees at the shop, as well as storage charges.”

Results of the final 2023 “Who Pays for What?” survey will soon be available. It asked shops about “not-included” repair procedures related to scanning and calibration of vehicle systems, as well as how shops are billing for shop supplies and aluminum repair.

Visit FenderBender.com/news for daily updates from around the collision repair industry.

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NEWS

Q U I C K

GEARING UP FOR GROWTH

MSO Symposium panelists talk about how they approached expansion as independent MSOs

By JAY S ICHT

PHOTO BY JAY SICHT

IDEAS

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PEOPLE

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TRENDS

F I X

BREAKDOWN

A PANEL OF FOUR INDEPENDENT multishop operators, one of the presentations at the MSO Symposium Oct. 30 in Las Vegas, explored the challenges and opportunities of growing an MSO in their

December 2023

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discussion, “The challenges and opportunities of growing an MSO.”

Collision Advice founder and owner Mike Anderson moderated the panel with questions and answers in rapid-fire succession.

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Here are just a few takeaways of that discussion, which included Casey Lund, owner of Collision Leaders, with eight locations in Kansas and Missouri (and profiled in this issue); Ryan Clark, vice-president of Eustis Body Shop, with six locations in Kansas; Doug Martin, president of Martin’s Body Shop, with three locations in southern Indiana; and Andy Tylka, owner and CEO of TAG Auto Group in Indiana and Illinois, with 14 shops and four Midwest ADAS standalone calibration centers.

How they started growing

The panelists have grown rapidly, and each

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QUICK FIX

had similar but different reasons for wanting to expand. For Lund, it was the realization once he had been able to “10x” his business within its same four walls, one booth, and one shift. The achievement came at the

same time he’d finished his two-year volunteer term as Warrensburg, Mo., mayor and had stepped back into the business.

“It was kind of a tough pill to swallow,” he said. “But eventually, I kind of realized that, ‘Hey, they don’t need me. Where can I divert my attention?’ And that’s what got me thinking about growth.”

For Clark, it was the need to move the business into more populated areas from its rural roots.

“We realized that those sales weren’t sustaining for the type of income potential that we wanted,” he said. “So, we focused on growing into some bigger markets and expanding to help provide for our families.”

Martin said his second location, purchased as an asset sale, allowed him to provide an opportunity for some talented people on his team.

“We had a good opportunity in a location that was close,” he said. “We had staff on the team who deserved more, and I knew that they had some ability to grow with a little push. For the third store, I was approached by someone who was a longtime family friend, and it was just a great perfect fit.”

Tylka began in the collision repair business when he bought the original location, Tom & Ed’s Auto Body, from his father.

“Three months later, somebody told me someone wanted to sell a little bit south of me, and it turned out to be three hours away.”

That led to Tylka to decide to keep the businesses’ branding that was familiar to locals, coming up with the “TAG” name as the brand for all businesses.

He said he enjoys the acquisition process.

On how to plan for proper staffing levels When planning for growth, the panelists agreed it’s ideal to be able to grow the staff before expanding. As Anderson pointed out, staffing up before an acqui-

sition or a nearby greenfield expansion means additional overhead. So, some operators get the next location and then worry about a proper staffing level once volume supports that.

“I’ve done it both ways,” Lund said. “I much prefer to staff ahead of time before you’re ready to grow. It is expensive. But it allows you to grow in a more prescribed proactive way.

Rather than burning people out and half-assing stuff, it allows you to kind of be prepared.”

Clark said his company staffs prior to an expansion.

“It’s also helped us get a career path for some of our people in our organization that may not have another anywhere else to go. So, as we’re acquiring or building new locations, it’s helped us fill through the pipeline.”

For Martin’s second location, a vacant shop, “what we did was try to insert people who had our morals and values and then built around them. And then the third location actually was already staffed up, and we’re working through that. So moving forward, ideally the best thing would be

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for us to take on people who want to grow, and then insert them. I’m going to say it’s a hybrid thing, but having the people who have our core values in hand, they can go and disperse those to our new team, obviously with the help of leadership to instill our morals and values and identity.”

too, that we partner with, and we see that as a partnership to help us grow.”

Lund’s shops have 18 OEM certifications and a few DRPS. “We have shied away from some of the fleet work kind of stuff, as we couldn’t switch gears as quickly on that,” he said.

On OEM certifications and EV adoption

How they stand out from the competition

For the shops located in more rural areas, they reported they are not pursuing EV repairs, taking a “wait-and-see” approach. But all have a focus on OEM certifications.

We are customer-focused, and have seven OEM certifications between our three stores,” Martin said. “Some of them do overlap. We do have a DRP and some fleet accounts, but for the most part, we’re focused on our customerfacing OEM certifications.”

Clark echoed his sentiment.

“We focus on the quality of the product over speed a little bit, so we do focus on OEM certifications. That being said, and as we’ve grown, we do have some DRP relationships,

“How do you feel how do you feel that you differentiate yourself?” Anderson asked the panel. “Let’s say there’s an insurer sitting here today. How would you say that you differentiate yourself from your local competition? And from a national MSO?” Lund said it’s Collision Leaders’ people.

“They’re the ones who named our business Collision Leaders because they teach each other and train to be leaders every day.

And that’s the most important asset that we have. And so we kind of pour everything we have into them, allowing them to understand that greater systems view, but I give them the autonomy to step outside the box,

whenever they’re dealing with customers to go above and beyond. And that’s kind of the basics that set us apart from a customer service perspective.”

Clark said his company’s focus is on the customer experience.

“We have a pretty in-depth QC products,” he said. “So we track and make sure that we don’t have a lot comebacks.”

A look at Martin’s customer reviews on Google, he said, are the proof that his employees are “trained to treat people like people.”

“It’s not about just CSI or getting some scores or some KPI. It’s about giving people an experience that matters that they’re going to remember, in a time that is not fun. We need to make something special for them. And my team does an awesome job at that.”

For Tylka, it’s his f lexibility of a single owner.

“So, you still get that family feel. Everyone still has the owner’s phone number, and we still have the parties the togetherness and I think that’s what sets us apart.”

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QUICK FIX

LIGHT HITS

REPORT: LOWER TOTAL LOSS RATE FOUND FOR EVS

Mitchell has released its latest trends report, “Plugged-In: EV Collision Insights,” according to a press release.

The report examined total loss frequency for electric and ICE, finding that the EV total loss rate was 7.25% for models 2020 and newer in the U.S. and Canada. Luxury ICE vehicles made from the same time frame with comparable actual cash value had a rate of 7.47%, compared with 8.49% for all ICE vehicles.

Differences between EVs and ICE vehicles were also explored in the report.

Labor for EVs accounted for almost half the cost of a total collision repair at 49.66%, compared to ICE alternatives coming in at 41%. It equates to more than six extra labor hours per job.

Repair costs for EVs are still trending higher than ICE vehicles, with an average difference of $950 in the U.S. and Canada.

OEM parts sit as the standard for EV repairs, with 88.85% of repairable EVs having parts from the manufacturer. For ICE alternatives, the number was 67.48%.

“Many believe that auto insurers are writing EVs off as a total loss more often than their ICE counterparts of a similar model year and ACV, even with only minor damage,” said Ryan Mandell, director of claims performance at Mitchell. “Our data simply does not support that conclusion. In fact, even though an EV’s lithium-ion battery significantly increases the likelihood of a total loss outcome, we do not see these automobiles declared total losses more often than ICE alternatives.”

WIN OPENS NOMINATIONS FOR MOST INFLUENTIAL WOMEN AWARDS

Nominations for the Most Influential Women (MIW) award, sponsored by the Women’s Industry Network (WIN) and open to women in any segment of the collision repair industry in the U.S. and Canada will be accepted through January 5, 2024. Award recipients will be recognized at the annual WIN Educational Conference, taking place

December 2023

next year from May 6 through 8 in Newport Beach, California.

Those who are nominated will be reviewed and interviewed by an independent selection committee made up of industry professionals, past award recipients, and WIN members not currently serving in the network’s leadership capacity.

To review nomination criteria and download the nomination form, go to: https://thewomensindustrynetwork. site-ym.com/page/MIW.

STARTUP USES AI TO DIAGNOSE ADAS FOR REPAIR SHOPS

Revv, a software-as-a-service startup, has launched its automotive repair diagnostics platform underpinned by a large language model (LLM), according to a press release. Revv’s platform leverages AI to help service technicians easily diagnose hard-to-identify issues with a car’s advanced driver assistance systems (ADAS), boosting shop revenue and ensuring safety for drivers.

According to Revv’s data, 60% of repair estimates by auto repair shops don’t include ADAS repairs, meaning essential fixes aren’t being made. This makes it a potential safety hazard for customers and a missed revenuegenerating opportunity for shops.

“ADAS is an invisible problem. When there’s no light on, mechanics and customers assume there’s no problem,” said Adi Bathla, CEO and co-founder of Revv. “There are over 500,000 unique ADAS procedure combinations based just on variables like make, model, trim package and model year. Multiply that by the thousands of distinct original equipment manufacturer mandated repair procedures for each make and model. Without Revv, it’s too timeintensive for mechanics to sift through that amount of information.”

To properly diagnose problems across these features without automation, repair shops would have to manually gather ADAS operations and procedures from fragmented sources like car manufacturers, aftermarket aggregators and OEM procedures. This

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has historically been a time-consuming and costly process.

Revv’s software, RevvADAS, transforms extensive vehicle-specific documentation into easily searchable databases and empowers repair shops throughout the country with actionable insights, unlocking previously untapped ROI for shops and ensuring safety for customers.

GEICO TO LAY OFF 2,000 STAFF MEMBERS

GEICO will lay off 2,000 staff, which is 6% of its workforce, and has issued a returnto-office mandate, according to an Oct. 19 article in Insurance Business.

According to the article, GEICO CEO Todd Combs wrote in a letter sent to employees the morning of Oct. 19 that the move allows the company “To better position ourselves for long-term profitability and growth, and after a thorough evaluation across all lines of business, we are reducing our workforce by roughly 2,000 associates, or 6% of our total workforce. This will allow us to become more dynamic, agile, and streamline our processes while still serving our customers.”

ANIMAL-STRIKE-RELATED CLAIMS DIPPED LAST YEAR

Last year, the rate of animal-strikerelated insurance claims inexplicably dipped beneath that of pandemiclockdown numbers, IIHS reports.

The Highway Loss Data Institute has conducted an analysis of claims from 2013 to 2022, which found that the rate of animal-strike-related insurance claims traditionally spikes in November as deer mating season begins.

This trend predictably changed in 2020 as pandemic-related lockdowns came into effect, with the November animal strike claim frequency dropping from 14.1 claims per 1,000 insured vehicle years in 2019 to 12.6 claims per 1,000 insured vehicle years in 2020.

In 2021, numbers returned to the 10year average with 13.6 claims per 1,000 insured vehicle years. For reasons that are unclear, however, this number once

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QUICK FIX

again plummeted in 2022. That year saw 11.9 claims per 1,000 insured vehicle years, falling to below what was reported during 2020 lockdowns.

With no significant changes taking place with the rate of travel in the U.S., the deer population, or safety functions in vehicles such as automatic emergency braking, it isn’t apparent what has caused the random decrease in animal-strike-related insurance claims in 2022, calling into question what 2023 may bring.

“This is a real head-scratcher,” confessed Matt Moore, senior vice president of HLDI. “It might be related to changes in commuting patterns as people continue to work from home, or we might just be seeing variations in the data. Time will tell.”

BODYSHOPJOBS.COM PARTNERS WITH TASCO AUTO COLOR FOR INDUSTRY RECRUITMENT

BodyShopJobs.com, an online job portal connecting skilled professionals with opportunities in the automotive repair industry, has formed a strategic partnership with Tasco Auto Color, distributor of automotive refinishing products and services, according to a press release.

According to BodyShopJobs.com, this collaboration marks a significant step towards addressing the growing demand for skilled talent within the automotive sector. BodyShopJobs.com and Tasco Auto Color share a common vision of empowering employers and job seekers in the industry.

By integrating Tasco Auto Color’s vast network of body shops and collision centers with the dynamic platform of BodyShopJobs.com, employers will gain access to an expanded pool of highly qualified candidates. The user-friendly interface of BodyShopJobs.com will enable employers to post job openings, review applications, and find the perfect fit for their workforce needs, avoiding the clutter of unrelated job postings found on alternative platforms.

For job seekers in the automotive industry, this partnership opens doors to numerous career opportunities nationwide. BodyShopJobs.com

December 2023

comprehensive database of job listings combined with Tasco Auto Color’s strong industry connections will create a seamless experience for professionals looking to advance their careers.

“We are thrilled to partner with Tasco Auto Color,” said Diane Benting, president at BodyShopJobs.com. “Our mission is to connect professionals with businesses in the automotive repair sector. This collaboration with Tasco Auto Color will further amplify our efforts and provide job seekers with even more possibilities to grow in their careers.”

Tasco Auto Color has built a reputation as a trusted partner by providing topquality products, training, and support, she said, noting the company’s commitment to excellence aligns perfectly with BodyShopJobs.com dedication to helping employers find the right talent efficiently.

FLORIDA PROPOSES WRITTEN CRASH REPORTS FROM REPAIR SHOPS

The state of Florida is looking to impose new requirements for auto repair shops following the investigation of a tragic hitand-run, WFLA reports.

On August 31, 2022, 13-year-old Lilly Glaubach was riding her bike home from school when she was fatally struck struck by 67-year-old David Chang at a crosswalk. Chang was driving 30 mph over the speed limit.

Chang immediately fled the scene and took his vehicle to a repair shop in Tampa, Florida, where he claimed the damages were from a tree falling on his car. He was eventually apprehended and sentenced to 15 years in prison and three years of probation.

In the aftermath of the incident, Senator Joe Gruters (R-Sarasota) has filed SB 194, or the “Lilly Glaubach Act:” a bill that would require auto repair shops to obtain a written crash report from customers with damaged vehicles.

In the case that a customer declines to provide a written crash report, shops would have to file a collision repair form that details information about the customer, such as name, address, phone number, and physical description, as well as info about their vehicle, including make, model, year, color, VIN, license plate number, and a description of the damage.

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If the bill makes it through the Florida House, Senate, and governor’s desk, it will take effect on July 1, 2024.

AUTEL TO DONATE ADAS CALIBRATION EQUIPMENT TO SCHOOLS

Autel has partnered with the Collision Repair Education Foundation (CREF) to donate an Autel Advanced Driver Assistance System (ADAS) Calibration Package to eight collision repair school programs across the U.S., according to a press release.

The Autel IA800 Lane Departure Warning (LDW) ADAS Calibration Package will include an IA800 ADAS Optical Positioning Frame System, LDW targets and patterns for 20 vehicle brands, a MaxiSYS MS909 tablet with ADAS calibration software, a VCI/J2534 pass-thru programming device, and a full-color, 244page Autel Academy ADAS training manual.

Schools are eligible to receive the donations by applying for CREF’s annual Benchmark grant program. The recipients of these packages are to be announced later this month at the 2023 SEMA Show in Las Vegas.

The gift is part of CREF’s recently launched initiative to provide automotive vocational schools, colleges, and universities with curriculums that utilize software and equipment containing comprehensive ADAS vehicle and safety system coverage based on OE specifications.

The recipient of an additional Auteldonated IA800 LDW Calibration Package will be announced during a CREF webinar on November 15 titled “The Importance of Adding ADAS To Your Curriculum.”

The package will also be offered to automotive vocational schools at a reduced price. More information on package details and purchasing options can be found here.

“It is estimated that by 2043, 95% of all registered vehicles in the U.S. will be equipped with most ADAS,” said Autel CEO Chloe Hung. “Our tools are designed for the skilled technician dedicated to providing exceptional diagnostic and repair services to their customers. And we are grateful to CREF for allowing Autel through our tools to be part of the learning process for these future technicians.”

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PPG LINQ™

Connect. Automate. Digitize.

End-to-end digital ecosystem for the global refinish industry.

Transform your customer experience, partner relationships and internal body shop operations with PPG LINQ’s interconnected digital hardware, software and innovative services.

Streamline repair processes

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Visit PPGLINQ.com The PPG Logo is a registered trademark and PPG LINQ is a trademark of PPG Industries Ohio, Inc. ©2023 PPG Industries, Inc. All rights reserved.

QUICK FIX

NUMBERS

DO YOU PAY FOR EMPLOYEE TRAINING/EDUCATION? AS COLLISION REPAIRS become ever more complex, the need for technical training has never been greater. Annually, 73% of respondents send their teams to I-CAR training, followed closely by paint company training (65%), OEM-specific training (41%), and training from equipment manufacturers (46%). Each type of training

paid for by the respondent falls in the same order of popularity, although the percentages of what is paid for by the employer differ.

These figures are part of the 2023 FenderBender Industr y Sur vey Report.

What types of employee training/education does your business pay for?

(Select all that apply to your shop)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

I-CAR Paint company OEM-specific Equipment manufacturer

BET_NOIRE / ISTOCK / GETTY IMAGES PLUS

Other vendors/suppliers/manufacturers Information service providers None Insurance partners

December 2023

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fenderbender.com

QUICK FIX

SNAP SHOP

DAVE’S AUTO BODY

By KACEY FREDERICK Photos courtesy of DAVE ’ S AUTO BODY

L O C AT I O N :

GALESBURG, ILLINOIS

OWNER:

DAVE DUNN

SIZE:

15,000 SQUARE FEET

S TA F F :

30

A V E R A G E M O N T H L Y C A R C O U N T:

200

AV E R AG E R E PA I R O R D E R :

$3,200

ANNUAL REVENUE:

$7M

Submit Your Shop Proud of your shop and want to show it off to your peers? Tell us about it at NEWS@FENDERBENDER.COM

December 2023

1. CREATING AN OASIS

Dunn got his start in the industry as a high school dropout working at a local auto body shop, and within a few years, began renting the building he now operates out of and opened his own body shop. 46 years and many renovations later, it’s unrecognizable from when it first began.

Today, a white, Dryvit finish can be seen on the exterior of the facility. Dunn has added additional buildings for paint and detail work onto the original structure to accommodate different areas of work, expanding from 3,600 square feet to about 15,000 square feet.

Dunn has performed consulting work for the past 35 years and was particularly impressed with the look of palm trees during his time in California and Hawaii, prompting him to plant one on his own property back in Illinois.

“I like to think of that as when people come to us, they're troubled and they've had difficulty, and (it’s) kind of emblematic or symbolic of an oasis where we're gonna make the problem go away,” Dunn explains.

2

2. HERE BECAUSE YOU WANT TO BE, NOT NEED TO BE

One of the first things people see when they enter is the hall of fame on the wall, containing professionally shot photos of each employee, complete with their own autograph.

15 years ago, certificates and certifications were displayed, but Dunn found that customers didn’t ever notice it as much. Now, many come in just to see someone they recognize up on the wall.

Things that draw people into the store beyond the need for collision repair have been a major strategy. Alongside being a repair business, the store offers its own original hot sauce: Dave’s Gator Sauce.

The condiment is regionally renowned, with local restaurants keeping it in stock for customers. Its popularity brings people into the shop, where every visitor is offered a free bottle, and it keeps the business in people’s minds even when they aren’t actively dealing with vehicle repairs.

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1 3. CLEANLINESS IS NEXT TO GODLINESS

The shop features equipment such as the Spanesi Touch, which allows for the diagnosis of problems before disassembling the vehicle.

“If something structurally was bent on the car, we need to know that upfront and not wait and discover it while we're actually repairing the car,” Dunn says.

The facility is air-conditioned with make-up air, providing fresh air in every area. Workstations are brightly lit, specifically meeting the criteria of 90-foot-candle lighting.

Every part of the facility has gray porcelain tile flooring that is consistently kept spick and span. The shop employs a full-time janitor and is equipped with a "Zamboni" that cleans floors throughout the day.

Though the shop has grown since its inception in 1976, Dunn has always placed a high value on cleanliness.

One thing that has changed is his vision for its appearance. It’s evolved with the experience he’s gained through visiting other shops globally as a consultant, offering him a unique perspective on the variety of shop designs.

“You just piece together things you see; maybe in the East Coast, or the West Coast, or Hawaii, or Europe, or in Australia,” Dunn muses. “And there's no single answer to that. It's a collective answer, based on things I've picked up from traveling around the world.”

3

December 2023

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COLUMNS

SHOP PROFITS

What Are Your 2024 Goals?

Plan now for the success of your business and employees

JOSIE SMITH PHOTOGRAPHY

As 2024 is just around the corner, each of us

needs to be asking ourselves, “Did I reach my 2023 goals?” And if not, why not? If we are going to meet our year-end goals, were they accomplished because the bar was too low, or was it because of hard work, teamwork, and ingenuity? Reflecting on 2023 as an entire team is necessary to set the stage for 2024. Otherwise, this is where we have been, and now this is where we want to go.

For the past five to six years on the first working day in January of every new year, we sit down as an entire shop and have a “State of The Shop Address.”

Every team member must be present during this meeting, and it usually lasts 1-1/2 to 2 hours. During this address, we present probably 15 graphs of our current statistics for the two prior years, as an example, 2023 vs 2022). Some of these graphs include hours per day, month and year; average repair order severity per month, per year; total loss fees collected for storage, admin. fees etc.; average estimate refinish hours, mechanical hours, body hours and frame hours. The car count per day, month and year, etc.

When we have this meeting, does everyone on the team fully understand every number and what it means? Well, of course not, but they at least understand that leadership does, and we don’t come to work to dance. This is serious stuff and when leadership says we need to go in a certain direction, they trust we have done our homework! During this meeting, we also review our written vacation rules, what the paid holidays are for the new year, and any changes etc.

When it comes to goal-setting, the great author Napoleon Hill of the book “Think and Grow Rich” said it best: “A goal is a dream with a deadline.” We can’t just arrive in the new year without a plan or direction as to where we want to go. We are like a ship just floating aimlessly in the sea. Why would any of our team members want to follow that type of captain? I know I would be looking for a new ship (shop), that’s for sure!

As leaders, each one of us must ask ourselves, “What is important to our business’ and employees’ success?” First and foremost, we must be profitable and be able to cashflow our business.

December 2023

Let’s look at the 2023 statistics for an example shop named ABC Collision: Gross Sales: $3,500,000, Cars Repaired: 700, Average Severity: $5,000, Net Profit Dollars: $400,000, or 11.4%.

One of ABC’s Collision goals for 2024 is they want to achieve $600,000 in net profit. How can ABC increase their profitability by 50% or go from $400,000 to $600,000 in 2024? In ABC’s case, increasing the average severity with estimating & negotiating training would be an easy solution.

Without fixing one more car and adding just $339 to each estimate for not-included operations & necessary inspections, materials, sublet markups etc., ABC can reach their 2024 year-end profitability goal. Here is the math for 2024: 700 repaired cars x $5,339 severity = $3,737,300 or $237,300 Gross Sales increase. Without diving heavily into the math, if this goal is met, the business would reach its profitability goal and there would be approximately $37,000 for employee bonuses.

Now, back to Napoleon Hill’s quote, that goals need to have deadlines. In ABC’s case, they need a checking point every day to make sure they are on track for their Dec 31, 2024, goals. This can easily be done in Excel, and I have even seen a few software programs that will track this. For the simple math here, ABC wants $3,737,300 in gross sales by year end. With on average 254 working days in a year, they need to produce $3,737,300 / 254 = $14,714 per day in gross sales.

The working days in every month vary, so the gross sales per month will vary. In ABC’s case, January 2024 has 22 working days and Feb has 21. So, the gross sales at the end of January will need to be at $14,714 x 22 = $323,708. At the end of February will need to be at $14,714 x 21 = $308,994 + Jan $323,708 = $632,702.

No matter what our business goals are for 2024, we must have a plan. If you get a chance, look up Brian Tracy’s “12 Steps to Set and Achieve Any Goal.” They are powerful, and his 12th step is “Never give up.”

Determination and discipline are two important ingredients to goal-setting, but Dwight D. Eisenhower said it the best, “Plans are nothing; planning is everything.” The more time we spend planning for 2024, the easier the execution will be!

23

GREG LOBSIGER

Greg Lobsiger has owned Loren’s Body Shop in Bluffton, Indiana, for over 23 years. He has been a member of Mike Anderson’s groups for ten years and had extensive lean manufacturing training.

EMAIL:

greg@lorensbodyshop.com

ARCHIVE:

fenderbender.com/lobsiger

fenderbender.com

FEATURE

LEADING THE CHARGE For these two shop owners, leadership starts from within

By JAY S ICHT

Photos MICHAEL MELOY PHOTOGRAPHY

I T ’ S P R O B A B LY N O S U R P R I S E T O M O S T

readers that respondents to the 2023 FenderBender Industry Survey cited finding qualified workers to be the numberone challenge facing the industry. Casey Lund is owner of Collision Leaders, with eight locations in Missouri and Kansas, and Jordan Beshears is vice president of Steve’s Auto Body, with two locations in the east metro St. Louis area of Illinois.

The two independent MSO owners mold their staff to be more capable and to be responsible for their own success. And they take the processes that work well and replicate them in their other shops.

Twenty-six percent of Industry Survey respondents were MSOs. Ryan Seever, body technician at Collision Leaders’ (formerly Warrensburg

December 2023

Collision) Warrensburg, Mo., location, was named the top shop worker in the 2019 FenderBender Awards..

He started over 10 years ago with the company, when it was doing less than $2 million in sales from what at time was its sole location. “He has been a huge part of our success,” Lund said. The company has since grown to eight locations and over $20 million in annual sales. Seever now leads his own production team, with a concentration on lean management.

“In 2012 or 2013, we really started diving into coaching our people to be leaders, hence why we named our company Collision Leaders when we rebranded last year,” Lund says. “We encourage everybody that they can have an impact on the business.”

24

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Collision Leaders Owner Casey Lund (right), shown here with Technician Ryan Seever, coaches staff to identify waste inside processes.

December 2023

25

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LEADING THE CHARGE

‘Winners lose more than losers lose’ Staff are encouraged to implement new ideas without asking for permission, even if they ultimately may not work. Nobody works on commission, and nobody gets fired for making a mistake, Lund says.

“Winners lose more than losers lose,” he notes, because “Winners try and fail until they win. We coach them through how to discover those ideas, and how to see waste inside of processes.” Those processes may include how to standardize — how to better organize tools so that it’s a repetitive process, or bigger picture items such as how vehicles are painted — and how the ‘X-ray’ blueprint process is performed. “And in doing so, they own the process, because it was their idea.”

Of survey respondents, 31% attend industry-specific management training at least annually. Lund sends managers to PPG’s Green Belt training, and the lessons learned from that are brought back and taught within the organization.

“It’s our people, a bunch of guys just like Ryan, who are leading the charge as we take folks from an acquisition and bring them into our Warrensburg store to work for a month so they can learn our processes. They get direct coaching and peer-to-peer leadership at all levels of the organization. It’s a culture of how we treat each other, how we can communicate and respect opinions. And that kind of breaks down the barriers as well. I encourage them to try new things, to fail. And I teach them skills outside of fixing cars; I teach them leadership/managerial skills.”

December 2023

A culture of continuous improvement encourages daily learning.

26

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The X-ray repair planning process is designed to identify all needed parts during teardown.

Continuous improvement takes center stage at morning meetings Each day at each location, preceding the typical production meeting, an employee is tasked with reciting the eight wastes of lean production: overproduction, excess inventory, motion, transportation, defects, overprocessing, waiting (or time) and wasted employee potential. The employee then notes the waste he has seen and how to correct it.

“As employees, we started noticing how much waste we were swimming in on a daily basis at our jobs,” Seever says. “Casey empowered us and challenged us, the people who see the waste firsthand, to fix it. He’s changed our mindsets to not just

December 2023

go through life thinking ‘This sucks and that’s how it is,’ to fix it and make it better. Whining, blaming, and complaining aren’t going to make anything better. Instead, he’s changed our mindsets to, ‘What can I do to improve it?’”

Those improvement suggestions are shared with the team during the morning meeting, Seever says, which can “spark ideas among other employees and spread through the shop like wildfire.”

“Casey has built a culture of continuous improvement. We take time out of every day to get better, and we also do a lean learning every day at our morning meeting. Casey doesn’t just boss us around; he teaches us the ‘why’ behind lean and a big-

27

ger systems view of the shop. And he’s led us into building repeatable processes that are defect-free.”

Lean learning Next up in the meeting is the “lean learning component,” Lund says, either discussing a book, or more typically, watching a video.

“Sometimes it’s about fixing cars, from, Collision Advice, SCRS, or I-CAR; or sometimes it’s about Dave Ramsey and how do we invest and make our personal lives better?

But we’re going to learn something, because we’re trying to create that culture that we learn every day. And then after that, we’re going to share any good news that we had.

It’s kind of team-building things like, ‘My

fenderbender.com

LEADING THE CHARGE

New ideas can be implemented without asking for permission, even though the ideas may ultimately not work out.

daughter made the honor roll,’ or ‘My son hit a home run,’ or ‘I finally paid off the house,’ whatever that is just about personal success.”

I was out of Kaizen foam, because everybody was trying to duplicate that.”

Sharing improvements

The biggest area of waste, Lund says, is overlooking damage that needs to be captured for the supplement.

“Our goal is to discover all the supplemental damage, write one good estimate and make it a blueprint – we call it X-ray repair planning – do that day one, and then we shouldn’t have to stop production on that car at any time once it enters production after it’s approved and the parts are there.”

The process works, Lund says. Over the span of many years, the number of repair orders requiring a supplement after the

The next component in each meeting is on sharing improvements.

“So this is the improvement that I made yesterday, to make myself or the shop better. Sometimes, we do showand-tell, because it’s something that will affect everybody: ‘I made a home for this broom or this tool.’ And they’ll present that to people so that everybody knows.

And then my improvement a lot of times inspires other people. It’s like the first time somebody used the Kaizen foam stuff [for organizing tools], the next day

December 2023

Reducing waste in production

28

repair planning has been performed has gone down from 90% to only 5%, in a facility fixing about 100 cars a month and over $500,000 in sales.

“It’s about identifying the struggle, seeing the waste, and we’re employing principles and theory to fix that problem in a way that it doesn’t come back,” Lund says. “The Japanese term is Poka-yoke: make it mistake-proof to where we can’t screw that up again, so we’ve now solved that problem. We’ve got thousands more problems to fix. Check that one off the list. Let’s go onto the next one. And that’s just kind of how we do it every day.”

“At Collision Leaders, Casey wants more than just our hands,” Seever says. “He wants our minds, too, so every day each employee is asked to make the two-sec-

fenderbender.com

26% 31% 73% 65%

OF INDUSTRY SURVEY RESPONDENTS WERE MSOS

ATTEND INDUSTRY-SPECIFIC MANAGEMENT TRAINING AT LEAST ANNUALLY

ond improvement. This can be anything to make your everyday job easier, faster, safer, and better quality. If an improvement fails, it’s okay, because Casey knows that they learned from their failure and grew and developed as a person.”

As a simple example, Seever says, receiving an incorrect part can create multiple types of (lean) waste, especially if it’s not caught until late and halts the production process. The solution to that would be to mirror-match new parts to old as they are received. Another example of waste at Collision Leaders was not having a process to identify all unrelated prior damage (UPD.) “Now as part of our check-in process, we go around and take UPD photos all

December 2023

OF RESPONDENTS’ TEAMS ATTEND I-CAR TRAINING ANNUALLY

SEND THEIR STAFF TO PAINT COMPANY TRAINING

29

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LEADING THE CHARGE

over the car. And that’s eliminating that extra waste of having to fix something for free and doing all that overprocessing. All our technicians have CCC on their cell phone. So as they’re fixing the car, as they’re X-raying the car, they’re adding the photos, we’re basically trying to tell a story that goes along with our estimate, to be fully transparent as to everything that we did to the vehicle. We want to do a good-quality job, get paid for just what we’re doing and nothing extra, really. We as technicians try to provide photos and information along the way to help document for our estimator, if they need to prove to the insurance company or anybody else to show what we did.

“We added the process of identifying UPDs because we got tired of fixing things for free.”

The process includes documenting the condition of lights, fluids, and the battery.

“A lot of these little defects that every body shop has, we’ve just gone through the mindset of not just thinking that this how it is, and ‘Oh, shoot, we’ve got to buy a battery.’ We’ve changed our mindset to, ‘What can we do to stop this from happening?’ So we catch it in the beginning, you know, we do these check ins, we do battery tests, we do fluids and light checks, and we document all this before we even start working on the vehicle.”

‘A rising tide raises all ships’ Jason Shup has been the painter at Steve’s Auto Body’s O’Fallon, Illinois, location since 2004. Beshears says Shup’s skill sets as a painter are at a “very, very high level,” but

December 2023

Shup also excels at “trusting what we’re doing, believing in what we’re doing, following the process, and then buying into how we need younger people to help us as a team move forward. It’s kind of like the old adage: ‘A rising tide raises all ships.’ He really buys into that.”

As an example, Beshears, says, he had to fire a painter at the Belleville location.

Shup’s prepper had been doing his job for seven years. But Beshears thought he was ready to be challenged in a new role.

“He was really comfortable in the role of being a prepper, but we felt that he put his time in it and deserved the opportunity to become a painter at the other store,” Beshears says. “So my dad and I talked about it. We brought Jason in, and without hesitation, Jason said, ‘Yeah, he’s earned the right,’ which I think says a lot about him. Because at the end of the day, that put him back to square one with training another prepper. He could have easily said no and kept him for himself. But he knew that it was best for Matt and best for the company for him to take this next step.”

Seventy-three percent of respondents reported their teams attend I-CAR training annually. Shup says not only does Beshears keep him current on I-CAR certified training and PPG certification at the Kansas City, Missouri, training center, but he makes sure their local paint representative visits monthly, which can be a big help to advance younger employees’ skills for spraying newer, more complicated colors, or proper priming techniques for the preppers. Sixty-five percent of survey respondents send their staff to paint company training.

30

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Collision Leaders encourages everyone on staff that they can have an impact on improving daily operations.

December 2023

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LEADING THE CHARGE

Setting expectations Jason’s had to adapt to his position being more of a leadership role, Beshears says.

“Kids nowadays are just different. It’s harder to motivate people…or it’s harder to figure out what motivates people. I think we’ve seen some evolution in him in terms of his leadership. How he’s approached dealing with the younger generation has changed, as it has for all of us, because we’ve realized once we’ve had to do it, you have to adapt to how these kids are or it’s just going to be a constant beating your head off a wall.”

Consistency allows for staff to advance within the organization at Steve’s Auto Body, Shup says.

December 2023

“What Jordan is trying to do is duplicate everything in all the shops. If it’s time for somebody to move up, he can just plug him in here and he already sort of knows the expectations, which is huge. He’s real good about, ‘Hey, I’ve hired this person to do this job. I’m going to let them do their job; they’re the ones who trained to do that. If they’re not doing their job, I’m going to say something.’ I think that’s huge of him to have trust in us, because I’ve worked with some other people who want to secondguess what you’re doing.

“And then currently here I have a kid that just graduated high school that’s really interested in it, so we’re working him up a

32

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Ryan Seever (left) began when Collision Leaders, then known as Warrensburg Collision, had a single location. He now leads a production team.

December 2023

33

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LEADING THE CHARGE

little bit and hopefully at some point he gets a store down the road or something.”

Shup says Beshears excels at placing people in the right positions to capitalize on their strengths.

“Say we have a guy who likes cutting off quarter panels. Well, guess what he’s doing most of the time?”

Instead of one technician keeping the repair job from start to finish (of the body repair), Shup says, Beshears is trying to place technicians in positions that allow the job to be broken into smaller portions.

“So, I think that’s been a huge, huge part that’s helped out a lot. Just the vibe around here is different from 2004, where we’re more of a team now. Back then, it seemed like it was more ‘I’m all about myself.’ That makes for better morale in the shop.”

Building up and not tearing down Seever shared that sentiment.

“Everyone around here is a leader. Everyone’s opinions and ideas are valued from the bottom all the way to the top. I think that’s the mindset is that everyone knows that they can learn something from some-

December 2023

body, and we’re all about building people up and not tearing them down.”

As the suggested improvements from the morning meetings are implemented, “one guy will see a little improvement, and he’ll be like, ‘Oh, man, I could tweak that a little bit for me and make it work for me here.’ Once we have a baseline process, at least we have something we can tweak and improve on from there. And we are continuously still tweaking our shop processes to make them better and better.”

When the first changes were implemented, the shop was shut down for several days.

“We in the shop made our processes: ‘Why do we tear the car down like this?’ And then we just created a standard. Every technician who was working at the shop at that time was a part of the decision-making of our processes. So since we were involved in making the processes, we had no reason to be upset or against them because they were all our own ideas. And still to this day, if we want to change something, it’s our baby.”

Allow the team to contribute “My leadership philosophy is to do less and allow others to do more. I believe that we

34

rob people of their potential in what they can become in life,” Lund says. “And I think we fail as leaders to do that. We rob ourselves of our potential by not allowing our team to contribute to their fullest ability. It’s not a competition. We’re all in competitions with ourselves, not each other. We’re trying to promote each other to get better. And by my friend over here getting better, I’m actually going to get better as well. Because he’s going to rub off on me, or he’s going to teach me, or I’m going to learn by watching him.”

Lund knows the authority he gives to staff to readily make changes is different from how many other shops run.

“They can change the business; they can implement systems — we have to teach them how to do that. But once we do that, they don’t need my permission to do stuff, you would think it was their business when you hear them speak. And they take that much pride and ownership in what we do and in wearing that logo on their jersey or on their uniform.

It makes them proud not of what I did, but because of what they did and their contribution. And I’m proud of what they do as their contribution, because that’s the secret sauce that has gotten us to where we are.”

fenderbender.com

LEARN

|

GROW

|

WORK SMARTER

S T R A T E G Y

TOP TIPS FOR SECURING FLEET BUSINESS

Fleet contracts can provide steady work and stable income if your shop can handle the workload.

ACCORDING TO THE U.S. Bureau of Transportation Statistics, there are around six million fleet vehicles on the road in the country. A report by FleetOwner shows that companies, regardless of size, are rapidly expanding their fleets in order to keep up with the massive increase in ecommerce over the last three years.

By NOAH BROWN

December 2023

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ADOBESTOCK_362151672

THE SOP

“WORK IS ALWAYS GOING TO BE CONSISTENT AS LONG AS YOU KEEP UP A GOOD REPUTATION WITH YOUR CUSTOMERS.” —Jake Brown, co-owner of Freedom Brands

As more companies add more vehicles, they need more people to fix those vehicles.

Jake Brown, co-owner of Driven Brands franchisee Freedom Brands, says this demand shows that fleet contracts with companies can be a sustainable and viable source of revenue for collision repair shops.

“When a lot of people think about f leets, they’re thinking about rental car companies, Amazon, USPS, but there are so many more out there,” Brown says.

“You’ve got pool companies, landscape companies. These trucks are getting damaged from the work that they’re doing. Fleet is always going to be there.”

Taking on a f leet contract, much less multiple contracts, is a big commitment.

If your shop can handle the load, though, it can prove to be a huge boost.

Start small, staff up Brown says Freedom Brands handles f leet contracts slightly differently than a typical shop might – one shop is specifically designated for f leet services.

Nearly all of the volume that shop takes on is exclusively f leet. Every other shop in their system also takes f leet work, but they operate on closer to a 50-50 split.

Having their system optimized for fleet contracts took a lot of time and effort, but Brown says the stable, consistent flow of cars into the shop is worth the setup.

“If we get 20 cars in one week, it’s all going to be from one customer. It’s very consistent,” Brown says. “Rental car companies and delivery companies are always going to be around, so work is always going to be consistent as long as you keep up a good reputation with your customers. You’ll always have work at your shop and in the back lot ready to go.”

December 2023

Brown says the No. 1 factor to account for when considering adding f leet contracts is the size of your staff. Most companies with f leets won’t send in vehicles one at a time, instead opting to send in multiple in one batch. Having enough techs to take on the work itself as well as people on the front end to help manage orders and invoices is essential.

In addition, your shop is also going to need additional tools and systems to handle the load – Brown says his shops use two different types of estimating software based on which fleet they’re contracted with. Working with your vendors, whether that’s for software, paint, parts or any other necessary supply, is critical to making sure that you’re getting the best deal on the amount of product your shop will purchase to keep up with the demand.

“You’re going to want to start small,” Brown says. “Some fleets are ready to start sending 20 to 30 different cars a week. Start small and build a reputation.”

And while making sure a customer’s vehicle is repair in a timely manner is important across the board, there’s a certain level of urgency that’s required when working with a company fleet.

“Every minute that car is off the road for your customer, they’re losing money,” Brown says. “Making sure your turnaround is good but also prioritizing them to be at the front of the line to get their vehicles back to continue making money.

Going the extra mile Most companies are going to shop around when looking for a shop to send their f leets to. Just as shops need to do with every customer, making sure the f leets you contract with get the best deal

37

possible goes a long way in securing their business.

Brown says f leets will expect a cheaper price per vehicle than normal retail customers. Though some shop owners might bristle at that notion, Brown says the amount of work your shop gets from those customers makes up for lower labor rates.

“They should be getting better pricing because there is more quantity,” he says.

“Fleet companies will expect to be getting charged a little less – you’re going to want to make sure that your labor rates are competitive for the number of vehicles you’re doing for them.”

Lower rates are the cost of entry for getting into the fleet business. Brown says if your shop is committed to that and wants to gain a good reputation, going above and beyond for the companies you contract with can help. For example, his shops pick up and deliver every single vehicle they work on, making sure that their customers don’t have to deal with the hassle of getting company vehicles to and from the shop.

“These companies like availability,” Brown says. “They like a quick turnaround.”

If your shop is prepared to handle those kinds of accommodations and has the capacity to take on the overall volume of vehicles that a fleet contract promises, Brown says the results can be a game changer for you and your team.

“I love to base my business on it, and it’s so much easier working with five different customers that can send you 40 different vehicles instead of 40 customers that send you 40 different vehicles,” Brown says. “It’s an interesting business to run, but it’s worth it in the end.”

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STRATEGY

UP YOUR DIGITAL MARKETING GAME

Now more than ever, a strong digital presence is essential to compete in the marketplace

CO L L I S I O N S H O P S are unique from the standpoint that, for the most part, customers know what services they provide. Most shops don’t necessarily have to advertise those base services, because most customers these days assume that shops are going to be able to fix their car.

By N O A H B R O W N

December 2023

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NATEE127 / ISTOCK / GETTY IMAGES PLUS

SA LES+M A R K ETING

That fact is a double-edged sword: On one hand, with customers assuming quality, your shop doesn’t need to convince people that you can do the basic work required. On the other hand, however, with almost every shop earning that benefit of the doubt from customers, shops need to do something different in order to stand out.

Tony Mercury, vice president of revenue of Auto Shop Solutions digital marketing agency, says that need to stand out has turned digital marketing into the key battleground in the industry. The internet is a level playing field for shops to vie for consumer interest, but those shops need to know how to navigate that field in order to compete effectively.

“The biggest thing for independent shops is that they’re competing against the consolidators. Those companies have large budgets, but as long as you have a presence, a website, you will get found,” Mercury says. “One company isn’t going to be able to buy up all of the first-page slots on Google. If you’re an independent owner, you have an opportunity to get found.”

Learning how to use digital marketing effectively can help your shop get the most out of your online presence, improve your customers’ experience with your shop and boost your reputation.

Everywhere at the Same Time Jerry McNee, president of Ultimate Collision Repair in New Jersey, says the key to digital marketing is figuring out your identity as a shop. Knowing who your customers are and what they value in their customer service experience is critical.

“It’s key to your future,” McNee says.

“Ultimately, if you get stagnant or complacent, you start drying up and withering away.

For example, McNee’s shop in the middle of a city with more than 100,000 people is going to have customers that have different expectations – and most likely different cars – than a shop in a more rural part of the country.

Mercury says that understanding of

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your customer base should inform your entire digital marketing strategy. And in today’s online-dominated marketplace, he says, there really is no room to compromise on digital marketing.

“If we were talking about it 15 years ago, I would say [you need] just a website.

Now, you really have to be everywhere at the same time, because you don’t know where a customer is going to start their journey,” he says. “There’s one scenario where they could search ‘collision shop near me’ on Google and click on an ad.

Maybe they post on a local Facebook page asking for recommendations. There’s not a definitive place anymore.”

There are four key components to digital marketing according to Mercury: website, search engine optimization, paid search engine advertising and social media. It’s no longer feasible for a shop to have just a website or Facebook page anymore; you need to have a strong presence in each of those four pillars.

Don’t Paint Your Own Car Advertising your shop and building an online reputation is becoming increasingly complex. Mercury says that his company sees a lot of shop owners and managers that have a ‘do it yourself’ mentality. They’ve built their business and brought this far, he says, so why wouldn’t they be able to learn how to build and manage their own website?

Mercury equates that to a customer painting their own car.

“They could technically do it, but it would look terrible. They’re way better off paying someone who has the skill set and expertise to make it look like it’s supposed to,” he says. “It’s not inexpensive to do it, but the ROI is always stronger than what you’re paying for it.”

Working with a marketing agency can help transform your digital presence and vastly improve your customers’ user experience. Mercury says shops will pay an average of $1,000 to $2,000 a month for strong digital marketing, and they’ll need to spend a little more for Google ads.

That sometimes can be a hard sell

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for shops that are so focused on making sure they maximize their return on investment. However, McNee says the return on investment is well worth the upfront cost.

“Shops that are doing absolutely nothing, they’re not reaching the people they need to reach,” McNee says.

Not every marketing agency is built equally, though, and you’ll need to do some research when selecting a partner.

Mercury says to make sure any agency your shop works with is specific to the automotive industry, knows your ideal customer and what types of vehicles you’re working on.

“Make sure whatever agency you work with aligns with your goals,” Mercury says.

Mercury also says to make sure that whatever agency your shop works with has a reporting dashboard. Auto Shop Solutions has a dashboard called the Auto Shop lab that monitors call volume, rankings of key words on Google and other search platforms, and other key performance indicators to see how well your marketing campaign is working.

Marketing agencies will have vast knowledge of optimizing customer experience, helping target those customers through online advertising and boosting businesses’ online credibility.

While it is possible for shops to do all of that in-house, Mercury says in order to do it effectively, shop owners and managers are going to have to put in even more time than they already are.

“As a business owner, if you’re consistently putting in 50, 60 hours a week, do you really want to devote another eight hours a week to marketing?” he says.

“Time isn’t something you can buy back.”

While it might cost more upfront, letting a professional agency handle your digital marketing can help make your online presence the best it can be and save you time in the long run, which can help your business even more.

“What’s your time worth in other departments?” he asks. “What’s your time worth in doing other things that your better at to help grow your business?”

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STRATEGY

T H I N K J U GG L I N G I S J U S T for the circus? Try running a small shop, says Dennis Cataldo Jr., general manager of D&M Auto Body in Old Bridge, New Jersey — between managing the office and team, talking to customers, running estimates, and ordering parts, he’s juggling all day every day.

CASE STUDY

SMALL TEAM SERVICE

How one small shop maintains the right balance for production capacity

By LINDSEY GAINER

December 2023

40

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With five employees, Cataldo runs a true-blue “small shop” — the team consists of his father, himself, two repair technicians and one refinish technician.

In operation since the 1960s, the shop has been owned by his family since 2014, when his father purchased it after selling his former shop in Brooklyn, New York, that he operated for over 30 years.

“We work on most of the vehicles that are currently on the road today, apart from Tesla and the higher end production vehicles that I do not have the tooling for,” says Cataldo. “I run the office and write estimates, research repair procedures, and order parts. It is a lot and often too much to do by myself, but I make it work.”

Here’s how.

The Problem Because he’s running a small shop, Cataldo must constantly maintain the right balance between the space he has available and the number of jobs his team can realistically handle at any given time, factoring in parts delays and other issues that inevitably arise each day. He needs to keep his team busy (but not too busy) and take in enough jobs to pay the bills without creating backlogs that are impossible to work around.

“I would say space is my biggest concern, especially when dealing with ongoing parts issues,” he says. “I run out of areas to 1) store parts and 2) store the vehicles waiting for said parts. During the height of the parts delays a year ago I had parts taking up two car bays waiting for a complete order.”

Cataldo says he tries to be as efficient as he can, because “no one likes having their vehicle sit.” But sometimes the issues hindering the repair are out of his control.

There’s also the need to maintain the right number of employees at all times for the amount of work that’s available.

“If I have too many employees, I run the risk of not having enough work to feed the production machine.”

The Solution To circumvent the issues the parts delays were causing, Cataldo implemented a system to coordinate the timing of

December 2023

drivable vs. non-drivable vehicle repairs — a triage system, if you will. Before anything else happens, he determines if a car is immediately repairable; if it is, work starts on that car right away. If it’s not, those jobs are set to the side while he waits for parts. He’ll schedule out a week or two in advance, but not much beyond that, and does his best to “plug jobs in wherever they fit.”

“A few years ago, I started to take parts deposits on drivable vehicles, and once a completed parts order arrived I would start the repairs on that vehicle,” a practice that keeps people in their vehicles while they wait for parts. “Non-drivers were disassembled, a completed repair plan performed, and parts ordered accordingly.

When that order arrived in full, I would move on with the repair.”

“Of course, I need to remain fluid with this plan,” he added. “At one point a few months ago, for example, I had three jobs waiting for exhaust parts to arrive in order to be completed.”

The ability to maintain f lexibility and course-correct is a must as a small shop owner, as Cataldo knows well. And it’s imperative to have a staff willing to f lex with you.

“I would say that’s mandatory,” he said, “because everyone has more than one role in a small shop.”

Time management is essential as well, given how much a small shop owner has to juggle day-to-day. In his own business, that means not accepting “walk-in” estimates off the street, and fitting administrative work in around his scheduled estimates.

Walk-ins detract from time that can be spent on the guaranteed work you already have, says Cataldo, and just looking at a car without disassembling it is counterproductive in his opinion.

“It’s almost guaranteed that whatever you look at, once the car is taken apart, there’s stuff damaged behind it, so the estimate is going to increase exponentially,” he says. “So, what’s the point of guessing?

Because that’s all you’re really doing is you’re guessing.”

The Aftermath “One benefit of running a smaller shop is

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that when business slows down I really do not need to panic — I can move with the ebbs and flows of this chaotic industry.”

When those quiet weeks come, he says, it’s easy enough to keep “all the pieces in place and operating” because you don’t have to worry about feeding a larger production machine.

“It’s not terrible — I mean, don’t get me wrong; I’m not happy when we have quiet weeks — but you can manage it way better, that’s for sure. Everything gets quiet certain times of the year and then it picks up again. I don’t panic because I know it’ll get busy again.”

During those slower times, says Cataldo, is essential to have a team who’s willing to jump in and help with other projects or shop maintenance to stay occupied.

Another key to successfully moving with those ebbs and flows? Having mentors and fellow shop owners to talk through issues with, and share best practices.

“My biggest suggestion to any shop owner is to join your state collision association; if there isn’t one, join a national one like the Society of Collision Repair Specialists (SCRS). The wealth of knowledge you can gain from other shop owners is an unbelievable resource. I have learned a great deal from being a member of the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) and even more so becoming a member of the Board of Directors. You get what you put into this industry and sharing knowledge and educating ourselves and our employees can only return dividends.”

The more effort you put in, he says, the more benefit you’ll receive in return.

The Takeaway Surround yourself with a staff who’s willing to be flexible and wear multiple hats at any given time, and find a system that works to keep your shop flowing given the space and resources you have — that’s a small shop owner’s key to success.

Plug into industry groups and resources to learn from your peers, too, and share your knowledge freely for the benefit of the industry as a whole.

“A rising tide benefits all boats,” after all!

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STRATEGY

ANDRESR / E+/ GETTY IMAGES

FINA NCE+OPER ATIONS

CREATING A LIFELONG CUSTOMER

Focus on customer and employee satisfaction to secure repeat business

By L I N D S E Y G A I N E R

December 2023

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WHAT TURNS A ONE-TIME CUSTOMER into a lifelong customer? Is it the quality of work you put out? How friendly your staff is? The speed at which you address issues when they arise?

Yes, yes, and yes, say Shawn Moody — founder of Moody’s Collision Centers, operating multiple shops throughout Maine — and Chad Bijou, owner and president of Waconia 1Collision & Auto in Waconia, Minnesota.

Beyond that, by connecting with people on a deeper level — showing compassion, taking

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an active role in their concerns, and listening to their feedback — you build a relationship that yields loyal, lifetime customers who send their friends and family your way, too.

“Happy customers become your sales force,” says Moody. “Not only do they return; they refer others.”

Here’s how these shop owners foster a culture of customer appreciation in their businesses.

Let Customers’ Experiences Guide Future Operations One of the most important tools in Moody’s business, he says, is their customer satisfaction survey, which is physically handed out to every customer at the conclusion of their repair.

Moody’s survey features just a handful of simple—yet telling—questions, things like: • What was your first impression of our shop?

• How did you hear about us?

• What made you select us for your repair work?

• Would you use our repair facility again?

• Would you refer us to friends and family?

He reviews every single survey response personally and uses the feedback he receives to hone and improve all areas of Moody’s business operations.

“Our customer service reps let every person they hand a survey to know that I read these things myself — that their feedback will be reviewed directly by the founder of the company,” he shared. “We emphasize that we want to hear people’s honest feedback, whatever that may be…good, bad, or indifferent, we want it.

And I think that’s the key right there, to let them know we actually use the information they share to better our business.”

Moody isn’t the only one listening to what customers have to say, though.

“Every one of these surveys — and we’ve gotten some tough ones — ends up on the break table at the specific location it’s connected to. That drives accountability when you have your peers reviewing these surveys.”

Responses are tracked throughout the year, Moody says, and each location is scored according to how they’re performing.

“We send it to every one of our shops, what their customer satisfaction percentage is and their survey return rate,” he continued. “And again, that’s all a part of being transparent, which is an extremely important value at Moody’s. So, every location sees that, and we

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run around a 97 to 98 percent customer satisfaction rating overall.”

During the annual awards banquet Moody’s puts on for its employees, the “Customer Satisfaction Award” is given to the shop location with the highest rating… and it’s the most coveted of all the awards handed out that night.

Another unique practice at Moody’s shop? They send a copy of any survey response received in conjunction with an insurance referral directly back to the insurance company with a thank you note — a “compelling” way to secure repeat business from insurers, Moody says.

Show Compassion and Empathy to Every Customer Bijou — whose shop boasts an 80% customer return rate — says the importance of empathizing and showing compassion to every person who walks through your doors can’t be overstated, either.

“The fact of the matter is that being in contact with us is a major inconvenience and the majority (if not all) of our customers would rather not be at a body shop/collision center due to an accident… whether it be their fault or at the hands of someone else,” he says. “So being positive, kind, and compassionate is key to building a relationship, as that one relationship will flow up and down river to future customers.”

And while Bijou acknowledges that it can be hard to listen to accident stories from customers on repeat, he’s quick to add that it’s imperative that all customers feel as though they’re heard, understood, and treated with respect.

“I know every customer has a story, and we have heard them all — customer accident stories can be difficult to hear, especially when it’s the same one you’ve heard 100 times before,” he concedes. “But a good reminder to staff is that this may be the customer’s first time in this situation, and it’s important for them to share their story and for us to listen and engage with them about it.”

That, he says, is the key to securing repeat business.

Invest in Your Employees and They’ll Invest in Your Success When you drill down to the heart of the matter, however, the people most responsible for your customers’ satisfaction are your employees. They’re the ones responsible

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for the quality of work your shop puts out, and depending on the size of the business and distribution of responsibilities, they’re likely the ones interacting directly with the customers, too.

That’s why, says Moody, it’s essential to invest in your team and make your shop a place people want to work.

Moody—and now his daughter, Danielle, who has taken over as president of the company—are industry leaders in this area.

Moody’s is a fully co-worker-owned business, meaning that every employee has personal equity in the company.

“We operate under an employee stock ownership plan, or ESOP…our employees collectively own 54% of our company.

So, when a customer comes through our door, they’re talking to a shareholder, basically a stockholder technician working on their vehicles,” he says. “Danielle lives and breathes our ownership culture, which is so important. She promotes it and believes in it wholeheartedly.”

The difference in the dedication, loyalty, and quality of work their employees produce as a result is palpable. Moody’s has received the “Great Place to Work” award year after year — a reflection of the pay, leadership, culture, and safety of the shop — and a whopping 98% of their employees would recommend working at the shop to a friend.

“Because of our ESOP, we’re able to attract and retain the best talent in the market, because people are looking for something more than just a job,” he continued. “They want to be a part of something special and something they can build some equity and retirement in. And, boy, it works. We’ve got close to 250 coworker owners now.”

Offering people a career — not just a job — is a must to keep the industry sustainable for the future, he says. Moody believes it’s every shop owners responsibility to invest in training the next generation of employees, and building long-term relationships that extend beyond a flat rate pay system.

Providing things like benefits, profit sharing, and continuing education will go a long way toward strengthening the industry’s workforce for decades to come.

The Bottom Line Find ways you can focus more on both customer and employee satisfaction, and watch your one-time customers turn into lifelong customers who drive your business forward.

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Making the Right Tool Choice using Empirical Data to Ensure a Safe and Proper Repair

BY CHRIS CHESNEY

As we look back on the last year in the collision industry, we have seen

combination vehicles to compare the results. The key parameters captured and analyzed were modules reporting, DTCs reported including active, history, and permanent, DTC failure type byte, and the ability of the tool to clear the DTC’s.

During this research we gathered data and uncovered results that we published in several case studies this year showing that the only way to verify the right tool scan choice was through empirical data.

In one instance, we found that certain aftermarket tools could scan a 2021 Jeep Gladiator and return the same results as an authentic OEM tool, going against the conventional wisdom that only OEM tools can be trusted on new vehicles. In another, we found aftermarket tools that missed codes on a 2017 Toyota Camry, a vehicle for which most would trust an aftermarket tool scan.

Ultimately, this rich data set we built and continue to build through our research now powers the asTech® Rules Engine, a proprietary, patented, and now award-winning platform that informs a user when their tool can perform a car side scan and return a report that is equivalent to the authentic OEM tool.

In addition to diagnostic scans, proper calibrations of ADAS systems are just as important. asTech’s current research is focused on comparing all the popular ADAS calibration targets meet the same design, size, color, contrast, texture, and performance as the OEM prescribed targets. This includes testing radar trihedrals, doppler reflectors, and any other static calibration target, special tool, or fixtures.

The goal is to ensure our customers who have already made the purchase of an aftermarket target system is fully aware of which targets will result in a proper calibration using OEM placement, setup instructions and OEM software. Institute’s providing the results of this research coupled with the Repairify Institute award winning ADAS training, will help shop owners to have confidence in performing these safety calibrations for their customers who rely on these technologies to keep them safe.

positive movement in the percentage of shops who are performing both pre-repair and post-repair scans. We’re also seeing this same move in the right direction with ADAS calibrations. However, we are far from where we should be as an industry dealing with the safety of drivers. There are still many shops who are using a single aftermarket scan tool to perform a post scan and erasing DTC’s before delivering the vehicle. There are also many more shops who are simply not performing proper diagnostics of the DTC’s nor performing ADAS calibrations as a part of their normal workflow. With today’s hightech vehicles, performing these tasks is not an option and failure to do so puts your customers and other drivers at risk. And it can put the shop at risk as well.

The most common pushback by a shop is the cost of the tools or a fear of not knowing how to start. Over the past three years, asTech has performed a significant amount of research to answer the ageold question, ‘which scan tool should I use?’. In the past the answer has always been, ‘it depends on what your vehicle mix is and which services you perform at your shop.’ We are focused on collision repair and the focus should be on pulling a comprehensive health check on every vehicle that enters the building before an estimate is written and after repairs are made. Then again after the safety systems have been calibrated properly and again after a proper road test. The question then is which scan tool will give me the information needed to ensure that nothing is missed, and the vehicle is returned to the owner operating as designed. Simple, right?

Here’s how asTech answered the question. Over the last three years, asTech has been testing tens of thousands of modern vehicles, representing thousands of YMMT combinations, equipped with today’s technologies by performing comprehensive health checks using the authentic OEM scan tools and 9 of the industry leading aftermarket scan tools. These health checks were performed immediately one after the other on each of the make, model, trim December 2023

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Navigating the Technological Transformation: A Collision Repairer’s Guide to Risk Henry Ford once said, “If I had asked people what they wanted, they

Your business insurance provider should understand your industry.

They should guide you on updating procedures for when an EV arrives at your shop, inform you about training and personal protective equipment sources, and advise on your pollution clean-up limit.

Furthermore, there is a tendency to focus on storage and preventing EV-related fires. At the same time, many technicians dismiss the severity of fires emanating from an internal combustion engine vehicle.

would have said faster horses.” This quote may explain the logic behind technology’s rapid transformation in and around vehicles today. In the last five years as a shop owner, you’ve had to transform your team, their training, equipment, SOPs, repair plans, partnerships, and risk management for your business. All except the last item listed may seem obvious; however, risk management is vital to protect your business. We will highlight three technological elements that have required new consideration in your collision repair risk management: automated driver assistance systems (ADAS), electric vehicles (EVs), and autonomous automobiles.

Autonomous Automobiles You and your team have been adapting to scanning, ADAS calibrations, and EVs. Soon, you’ll also encounter autonomous vehicles if you haven’t already. California has already begun approving Level 3 cars, and other cities nationwide have authorized limited use with them. Some key considerations include: • If you take a car on a test drive and put it into autonomous mode, who is driving the vehicle?

• Whose insurance will cover a loss?

• Will it be your shop insurance or the OE (original equipment insurance)?

Automated Driver Assistance Systems (ADAS) Remember in 2017, when we debated whether the industry needed to scan vehicles before repairing them? This was the first wave of quality collision technicians throwing out their books and converting to online, on-demand, OE repair procedures. You had to purchase equipment, set up separate Wi-Fi groupings, train your team to research the procedures, and fill in the gaps. Calibrations became necessary to fine-tune and validate that ADAS is performing properly. That is the key phrase — performing properly — as all this is tied to performing a safe and proper repair.

As a shop owner, do you outsource the calibrations or develop the capabilities internally? Do you have enough space, or can you find more nearby? Are the floors level? What are the costs of targets, increasing staff, and training?

Your business insurance provider should understand the tradeoffs and help you navigate the decision. If you outsource, how do you determine the facilitator and ensure you have a mechanism to transfer the risk for their completed operations errors? If you complete it in-house, what is the most efficient way to cover that exposure? Additionally, how do you improve the bill payer’s acceptance of the charges?

At SPARK Underwriters, we have chosen to clearly provide coverage for the collision repairer. This is to protect you and keep your customers from getting the runaround. Most automotive business insurance we have reviewed is silent on covering autonomous vehicles on test drives. However, if they are not silent, they add an exclusion on coverage for shop owners.

Technology advancements are speeding up and will continue the trajectory. Even artificial intelligence is creeping in, from claims adjusting to OE repair research, training, and all types of decisionmaking. Unsurprisingly, criminals are using it, too, increasing exposure to fraud and cyber risk.

You need help with risk management before the loss, not after it.

Make a conscious decision on whether to avoid exposure, modify it, purchase insurance, or self-insure (which means void of insurance).

It is important that your underwriters, claims handlers, and risk managers are current and in your industry. At SPARK Underwriters, we are more than insurance; our team of certified technicians could work in your shop. We also know what the “empty chair” means and how critical it is to do a proper repair.

Electric Vehicles (EVs) Zero carbon initiatives, government subsidies, and early adopters have pushed electric vehicles (EVs) beyond the demand curve. Should you get in on the action as a repairer? What training and investments are needed to protect the customer, your people, and your business?

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The Digital Age Has Arrived in the Mixing Room Digital tools for achieving fast and accurate color matches have made

Cloud-based digital color software

significant advances in recent times—and that’s great, given how essential an efficient refinish process is to the overall key-to-key productivity of a production-minded collision center. Here’s a rundown of some of the latest color-matching innovations that can help increase shop throughput, enhance profitability and increase customer satisfaction of refinish repairs.

The advent of web-based color formula retrieval is providing substantial benefits for making the entire color matching process more efficient.

Thanks to advanced algorithms and the speed of cloud computing, technicians have access to the very latest prime and variant formulas automatically. No need for manual software updates.

Moreover, cloud-based computing can provide the user with a variety of connected and wireless dispensing solutions, including small, smart hardware devices providing direct wireless connectivity.

For example, with the PPG MAGICBOX™ smart device, the technician can now communicate directly with a spectrophotometer and connect to the mixing scale without the need for a PC. This is a great way to free up space in the mixing room.

Sophisticated spectrophotometers Given the increased use of sophisticated mica and pearl colors by OEMs, and how the actual color can vary from vehicle to vehicle—along with how the perceived color can vary depending which angle it’s viewed from—makes identifying the correct color on the first attempt a significant challenge for the human eye. Enter the “electronic eyes” of refinish spectrophotometers, which have made significant inroads since their introduction in the late ‘90s to today where they are fast replacing more traditional aids like color chip books and variant decks.

The newest versions can read a customer’s vehicle color from multiple reflective angles, tap into a formula database and quickly find the right match. PPG’s latest spectrophotometer even provides texture information as well as the ability to compare the color differences between two adjacent parts.

The automated mixing system No doubt the future of color mixing has arrived with the recent introduction of the automated mixing system, designed to replace the manual mixing process. It’s a remarkable innovation that can virtually eliminate human errors in the mixing room, while achieving exceptionally accurate color mixes.

Creating an automatic color mix is simple. After retrieving the formula, the technician loads the required toners onto a dispensing rack. With the push of a button, the automated system first double checks barcodes to ensure the correct toners are loaded. Then the system automatically dispenses the exact amount of each toner, down to the 100th of a gram. The accuracy is so precise that it significantly reduces the need for mixing extra paint. To further eliminate waste, the system is designed to ensure all of the product is used, down to the last drop. In addition to the savings in paint consumption, studies have shown that automated mixing can achieve a significant increase in mixing room efficiency.

Virtual sprayout cards As one of the more innovative color-matching tools, digital color visualization is an application that works in concert with formula retrieval software to display a realistic 3D rendering of the spectrophotometer reading in comparison to the best match from the color formula library. The user can manipulate the “virtual sprayout” in a variety of ways to confirm that the color is the correct match.

Given that effect pigments have a different appearance, depending on the viewing angle, the user can view the rendering from flip and flop angles as well as manipulate the light source. The app can also provide a blend view to replicate a panel gap, as well as an edge view comparing the two colors being directly next to each other without any gap. Digital color visualization truly is a significant breakthrough to save time in color mixing by reducing the chances of human error in the formula selection process, and by reducing the need for creating actual sprayout cards.

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In summary, by replacing traditional repair processes and incorporating these latest advancements into a digital color mixing ecosystem, the highproduction collision center can implement the most efficient process for enhancing overall key-to-key productivity.

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Increase Your Insurance Partner Referrals Fix Network USA’s Scott Bridges shares his insights on successfully working with insurance companies

Like fingerprints, no two insurance carriers are identical. Understanding

helps ensure your shop complies with insurance company requirements.

This can lead to faster approvals and a higher likelihood of being recommended to policyholders.

the commonalities between companies and the uniqueness of each is vital to a successful direct repair program (DRP).

Earlier this year, insurance news provider PropertyCasualty360. com reported that insurance-paid work accounts for almost 90% of the overall collision repair industry revenue, leaving only 10% as work that is paid out-of-pocket.

Working effectively with insurers not only ensures a steady flow of work but also helps streamline the repair process. This is often challenging, thanks to increasing repair volumes, technician hiring challenges, supply chain disruptions, and the variables that drive each insurer’s decisions on what repair shops to work with.

Here is a look at some of the components ProColor Collision helps our franchisees with, strengthening their relationships with insurance companies and allowing them to focus on serving the end customer.

Provide Detailed and Accurate Estimating.

Invest in digital tools and software that streamline the repair process, such as scheduling tools, estimating software and communication platforms. Being efficient and tech-savvy is of great value to insurance companies.

An important aspect of delivering on estimates is blueprinting.

Establishing a consistent procedure that clearly communicates the work details and identifies needed repairs sets the whole team up for success. Blueprinting also minimizes unforeseen damages, delays and costs that may negatively impact your relationship with insurance providers.

Speak the Insurance Company’s Language.

Deliver Quality Work. Ensure your technicians consistently

To consistently secure work, you need to speak each insurance company’s unique language and communicate in their preferred method, be that via email, the phone or other tools. Regardless of how you submit information, the driving factor is the timely submission of accurate estimates that can be quickly and easily reviewed, understood and approved.

Before submitting, contact the insurer to confirm you provide the necessary information the way they need it.

deliver high-quality work. When both customers and insurers are satisfied with your work, the speed at which you work and the cost of the work, they are more likely to refer business to you.

With the ongoing technology changes in vehicles and equipment, it is imperative to invest in training for technicians. It demonstrates your commitment to quality and reinforces the value of your technicians, making them more likely to stay with your shop.

Understand the Scorecard. While much of the

records of each repair job, including photographs of the before and after condition of the vehicle, detailed repair logs and part receipts.

This provides transparency and helps protect your shop in case of disputes or audits.

Working efficiently and effectively with insurance companies is a vital aspect of auto body shop success. Building solid relationships, staying informed about industry standards, providing detailed estimates, maintaining open communications and delivering quality repairs are crucial to successful DRP programs.

Document Repairs Thoroughly. Maintain meticulous

insurance claims process is consistent across companies, there are nuances with each. Understanding and managing those differences is key to growing your relationship with each company. While some focus on customer satisfaction, others concentrate on cost or the time needed to complete the repair. Understanding the metrics each insurance company expects you to hit and the importance of each is essential.

This can be time-consuming, especially while running your business and managing your staff. ProColor Collision has a team of insurance-focused professionals who help manage this process for franchisees. They know what each company measures and the weight of each scorecard item. This supports franchisees delivering results for the insurance companies and their end customers.

Scott Bridges is the vice president of Fix Network USA, the leading global automotive aftermarket services network, which includes ProColor Collision.

The family of brands spans more than 2,000 points of service internationally.

In the United States, Mondofix Inc. (dba Fix Network) has granted an exclusive license to 79411 USA LLC to the Fix Auto Collision brand.

Stay Updated on Industry Standards. Staying informed on the latest industry standards, safety regulations and repair techniques December 2023

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SPONSORED CONTENT

FROM OUR PARTNERS

Regulators…mount up The importance of regulation in the spray booth

BY CHRIS SPRINGER

A lot of attention has recently been given to the importance of regulating

from 120 psi to a usable pressure of 20-29 psi. However, the more the regulators or air micrometers are closed to lower pressure, the more they choke the volume of air. Whether you’re using an analog gauge at the bottom of a spray gun or one of SATA’s many tools for measuring digital air pressure, you should not be using it to adjust air down more than 5-10 psi maximum. This prevents the regulator from choking all the volume of air that your spray gun requires to perform at its best.

There are a hundred different analogies explaining this theory. I can easily digest the one where I get asked, “Would you rather breathe through a coffee stirrer straw or a snorkel?” Obviously, the snorkel, because it allows me more air volume. Picture it like this: If I take my garden hose with no nozzle on the end and turn the water on, the water flows out the front and within 4-8 inches it drops to the ground. I take that same hose and firmly place my thumb over the end, and we see a dramatic change, right? Now the water is shooting 10-15 feet before falling to the ground. By choking the volume of water that is coming out of the hose, we have changed the velocity of the water as well as the volume.

Less water is coming out, but the water that is coming out is at a higher speed. A similar thing is happening to the air inside your spray gun when you use the air micrometer or regulator on the bottom to adjust pressure.

We are all familiar with the pipe sticking through the booth wall with a coupler on the end. This is the specific situation I would like to help you fix. Ideally, you should regulate air pressure at the wall where the hose plugs in. Regulating at the wall also exposes you to higher quality regulators, since they are generally larger than the ones you mount on your spray gun, and some use a diaphragm to lower pressure while maintaining volume of air. This allows you to regulate the air down to 5-10 psi above where you need to set the spray gun using the gun mounted regulator or air micrometer. This “fine-tunes” the air without choking all that volume.

your spray pressure at the booth wall rather than at the spray gun itself.

And for good reason. As painters, we are talented at taking what little we’ve been given and somehow make it work. Sure, we would love to work in a top-tier shop with all new equipment and spray booths and a continuous flow of work that never required a supplement. In reality, that doesn’t exist, so we do our best with what we have.

There are so many moving parts to the paint side of the shop that it can be overwhelming at times. Generally, we start with what is in front of our nose and move backwards. We make sure the booth has clean filters, the booth has been blown out to avoid dirt issues, replace any hoses that are leaking or breaking down, and we even go as far as making sure our air filtration unit is clean and operating properly. Those are a few of the items that the painter may have control of in the shop. Most times, we as painters don’t make decisions about the behind-the-scenes items like piping size, layout, compressor size, dryer, etc.

Let’s focus on the areas within our control that can help make our jobs as painters a little easier. Whether you have been to one paint company certification class or 20, you have been a part of the conversation around high-flow hoses, couplers, and fittings. You’ve learned how you everything leading up to the spray gun should have as few restrictions as possible. You have been taught that HVLP spray guns run off volume of air more so than pressure. I am even willing to bet that you’ve been part of the discussion about regulating your spray gun at the wall rather than at the gun. There is a reason that paint companies and spray gun manufacturers have been promoting regulating at the wall for over 20 years. I also remember all the times students in my certification classes said, “I have the same gun back at the shop and it doesn’t spray anything like yours did today.”

The performance of a spray gun today is scrutinized more than ever. Not only because paint technology has changed and colors and finishes are getting more complicated, but also the performance of spray guns has changed. Painters’ expectations are higher because they are educating themselves now more than ever before. So, let’s take a minute and focus on the specific things about air delivery that influence a spray gun’s performance.

“Highflow” hoses, couplers, and fittings: As a generic rule, compliant or RP spray guns require 10~ CFM of air volume, while HVLP spray guns require upward of 15~ CFM to operate properly. Air pressure can travel down the smallest of hoses, but CFM can only be increased with size. The larger the pipe, hose, etc., the more volume of air it can flow. Most of today’s spray guns require a “highflow” 3/8” 9.5mm ID (inside diameter) hose, couplers, and fitting to operate the way the manufacturer intended.

Issues that come from not lowering pressure at the wall: Running full line pressure to the spray gun and then regulating down can cause some performance inconsistencies. The increased velocity of the air can dramatically affect the fullness of your spray pattern. Almost always, you sacrifice pattern height and fullness by not regulating at the wall. With the higher velocity air coming out of the air cap, it doesn’t have enough dwell time to atomize the stream of paint and fill the pattern the way it was intended. You may notice pulsing of the air and pattern and in some cases, you can see little bands of overspray coming off the pattern. This can lead to color-match issues, lightening of metallic colors, mottling of metallics and pearls, and even clearcoat orange peel and micro-pop.

Regulating air pressure at the gun vs. at the wall:

Solutions for wall regulation:

When you purchased your new SATA spray gun, you also grabbed either: a regulator for the bottom of the gun or one of the SATA adam2 digital displays that replaces the air micrometer so you can set precise pressure. There is one very important thing about the spray gun bottommounted regulator that you may not have considered. Those regulators are a choke point for air volume. They may regulate the pressure down

Here at Dan-Am, we offer a product line called Dan-Am Air. This line focuses on everything from the compressor to the paint booth when it comes to piping. Additionally, Dan-Am Air has an excellent variety of inbooth diaphragm regulators that flow 142 CFM of air volume. Currently in 2023, list price on the DAA 2 drop regulator, part #675652 is $195.00.

That is a very small investment to avoid a myriad of problems in the booth.

December 2023

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Congratulations

TO THE 2023 ADS OF THE YEAR WE ASKED YOU, OUR FENDERBENDER READERS, TO PICK YOUR FAVORITE ATTENTION-GETTING, INFORMATIVE AND MEMORABLE ADS.

Winners were chosen from eligible national print ads in the August 2023 issue.

Participating advertisers include: Accudraft, ARSLoaner, asTech, Autel, Auto Data Labels, Axalta Coating Systems, CCC Intelligent Solutions, FinishMaster, Industrial Finishes, LaunchTech USA, LKQ Corporation, O’Reilly Auto Parts, Polyvance, PPG Industries, ProColor Collision and SATA.

December 2023

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COLUMNS

COLLISION COURSE

How I Saved My Company Holiday Parties

After several failed attempts, a few adjustments got employees into the holiday spirit pany holiday party, a task I have struggled with for years. At first, I thought I didn’t need to do a holiday party, because what more could they want after receiving a generous holiday bonus? Then I realized a holiday party could bring my employees together and help develop our culture.

The first year, I spent no time prepping and took my lead from other shops around me. We had just a few employees and had the party the day before Christmas Eve. We closed early at 2:00 p.m. and grilled some meat on the BBQ, got some beers, and gave out the holiday bonus. I also paid them to be off Christmas Eve and Day. I thought I was doing great, because most of the other shops around me worked a half day on Christmas Eve. But I was wrong. There was no camaraderie, and everyone left by 3:00.

The next year, I invited their significant others and kids and bought the kids little gifts. But it flopped just like the first one. No significant others showed up, and only two of my employees brought their kids.

I could tell my employees were just ready to leave and get their holiday started. Their families had no incentive to come and spend time at the shop.

After two failed holiday parties at the shop, I decided to have the next one at a restaurant.

I invited the families and kids and covered the cost, including drinks for the adults. I also had them draw names for a gift exchange. I really thought, “This it. They are going to have a good time, there’s going to be a lot of camaraderie, and my team is going to grow closer!” But my team stayed just long enough to get their holiday bonus checks, exchange gifts, and leave. A few stayed and ate and drank, but most of them used the excuse of family obligations and left as soon as they could. The ones who did stay just stayed to themselves or their already preformed groups.

By year four, I was sort of at a loss, but I wasn’t done trying. We closed early and had the holiday party a week before Christmas. I had food and drinks catered, tailored to what they requested in advance. I handed out the bonuses. We did a Secret Santa gift exchange and played games. We played the jingle bells game where you strap to your backside an empty tissue box (adapted to body shop life, we used empty glove boxes and masking tape) full of little bells. Then you have to shake, jump, gyrate, and anything else you can do to get the little bells out of the box before your competitor does.

Most of my team did not want to play the ridiculous games I came up with. To fix that, I had to make a fool of myself (which I have no problem doing).

December 2023

My team laughed so hard at me getting a box taped to me and then trying to get all the bells out.

Then we did the game where you put whipped cream on your hand and then hit your arm with your opposite hand to send the whipped cream flying in the air and then try to catch it in your mouth. I demonstrated the game and ended up with whipped cream smeared all over my face and in my hair. I’ve never seen my team come together so quickly as they did that day to laugh at my foolishness. Everyone stayed at the holiday for a few hours and seemed to enjoy it. I took that party as a win!

Last year was our fifth holiday party, and it was my best one yet. I handed out holiday bonuses two weeks in advance of the party so my team had a chance to use the money to buy gifts and other holiday expenses. Everyone appreciated that. We had the holiday party a week before Christmas Eve. I had the food catered from where my team chose, and I let them pick what drinks we were having. I invited the significant others and kids.

I got a gift for each who would be attending. Each gift was under $25, but it showed my employees and their families I was thinking of them. We also did a white elephant exchange with a limit of $25, and the item had to be body shop-related in some manner. What they came up with was hilarious.

The biggest difference was the games. Participants could be silly and win money. The games were easy enough that the kids could also play. For one, we layered a table with a bunch of $1 bills. But mixed in were gift cards and $5, $10, $20, $50 and $100 bills.

We blindfolded the employees and stuck them in front of the table with a spatula and a plate. They could keep whatever they could scoop up on the plate in 30 seconds. It’s a lot harder than it sounds, and everyone loved the game. My entire team was laughing and yelling directions at the person playing. It was great to see. We continued the party with four or five more similar games, and everyone stayed a good three or four hours, just hanging out and laughing and having a good time, The party was a success.

The point is to remind you that the holidays are a time where you can strengthen your culture and build the camaraderie between your employees.

It may even take making a fool of yourself to have that happen. If one party doesn’t work, keep tweaking it until you find what does work for you. My team looks forward to the party, and I look forward to seeing them have a good time and laugh and grow together. The stronger the ties are between my team members, the stronger my shop is. And that is my main goal.

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TIFFANY MENEFEE

has more than 20 years experience in the insurance business and now runs a collision repair shop in El Paso, Texas.

EMAIL:

tiffanykaymenefee@gmail.com

ARCHIVE:

fenderbender.com/menefee

fenderbender.com

JOE GRETO

There’s an art to throwing a successful com-

Supporting the Local The ProColor PROcess is a winning formula.

A proven business model for 20 years, ProColor Collision provides an alternative to independent body shops that want to join one of the fastest growing networks in the world.

Local business owners are supported by a team of sales, operational and marketing professionals, and backed by proven tools and ongoing training programs.

ProColor Collision is committed to helping shop owners grow their business in their communities while leveraging strong established relationships with global insurers, suppliers and fleet companies.

PROsper with the PROs Find out more at procolor.com

ProColor Collision USA LLC, 650 Pelham Blvd, Suite 100, St. Paul, MN 55114 ® Registered Trademark of MONDOFIX INC.

COLUMNS

DUE PROCESS

Gut Check Time Look in the mirror and beyond

ral to reflect on the first three quarters and assess if we’re still on track to achieve our goals. For most of us, the past year has been anything but predictable. We have faced several unforeseeable challenges, from lingering pandemic impacts and festering economic uncertainty, to supply chain disruptions. However, as we prepare to face the next year, we must conduct a gut check to ensure we’re heading in the right direction.

Are Your ‘A players’ Actually ‘B Players?’

Your team is one of the most important aspects to consider at this time. Are they still the right fit for your business? Have you given them opportunities to grow and develop their skills in alignment with your long-term goals? How does their current role align with their own personal vision? Having A players on your team is essential, but it’s also necessary to ensure they are in the right positions and continuously striving for excellence. I find all too often that as shop owners, the love for our people inspires us to push into leadership those folks who do not meet the minimum skillset and operational knowledge requirements for our specific needs. We must identify whether or not our key players are influencing the company from growth or a fixedminded mentality. More importantly, are their actions intentional or just along for the ride?

Assess Your Financial Health 2023 may have been a rollercoaster ride for your business, but assessing your financial health and making necessary adjustments for the next year is essential. Are you tracking your expenses and revenue accurately? Are there areas where you can cut costs without compromising on quality?

It’s crucial to clearly understand your financials to make informed decisions for your business. I recommend you begin this assessment by asking a simple yet incredibly impactful question to those responsible for driving the company’s finances — “Is it happening to us or because of us?”

December 2023

Review Your Customer Base Customer retention and satisfaction are vital for the success of any business. However, as we make tweaks and changes throughout the year, it is important to communicate to our team that not all customers are our customers. As we move into 2024, it’s essential to review your customer base and identify areas for improvement. Are you meeting their needs and expectations? Are there ways to enhance the customer experience?

Taking the time to identify who are our intended targets and spend energy on improving our value proposition to them specifically, all while defining clear standards for guiding our nontargeted consumers toward other providers without slamming the door in their faces.

Avoid Procrastination As we approach the end of the year, it can be tempting to put off making critical decisions for our businesses until the new year. However, this procrastination can hinder our growth and progress. Having a sense of urgency and taking action now is essential, so we are wellpositioned for success in 2024. Whether pulling the trigger on a team member you know is the wrong fit, reviewing your marketing strategies, or implementing new training programs for your team, don’t delay taking the necessary steps toward achieving your original goals.

Conclusion The road to 2024 and beyond may not be clear, but continuously evaluating our goals and making necessary adjustments can pave the way for a successful future. So, let’s take this opportunity to reflect, assess, and make any necessary changes to ensure we are still on track. Let’s finish strong in 2023 and set ourselves up for an even better year ahead! Remember, embracing transformation and growth may not be easy, but the industry will evolve, whether we like it or not. Let this be a year of change that will set us up for a successful future.

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D R E W B R YA N T has been

the owner of DB Orlando Collision since August of 2011. A 20 Group leader, in-demand conference speaker and award-winning shop owner, Bryant takes a non-traditional approach to process implementation, lean process development, & overall operational experience while remaining dedicated to his staff’s personal and professional development.

EMAIL:

drew@orlandocollision.com

ARCHIVE:

fenderbender.com/bryant

fenderbender.com

STEVEN PARKS

As we enter the final quarter of 2023, it’s natu-

The Passionate Parts People Lashawn | 1 Year of Service Warehouse Associate | Atlanta, GA

Meet Lashawn, a Warehouse Associate at our Atlanta, Georgia location. Lashawn is one of the more than 45,000 men and women of LKQ who share the passion for providing the best possible parts and service for our customers. This year, as LKQ celebrates 25 years of providing choice in vehicle repair, we honor those, like Lashawn, and all our employees, for the passion they bring to their job, every day.

Join Our Team

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Feel the passion and find your next replacement part at www.LKQcorp.com

New Aftermarket | Recycled OE | Remanufactured Engines & Transmissions | Paint Products

Call Us : 866-LKQ-CORP Visit Us Online : www.LKQCorp.com December 2023

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