FenderBender - March 2020 by EndeavorBusinessMedia-VehicleRepairGroup

FENDERBENDER.COM / MARCH 2020

ACHIEVE EVEN YOUR MOST AMBITIOUS GOAL PAG E 47

THE SECRET TO ENTICING DEALERS PAGE 54

RAINS:

Strategies & Inspiration for Collision Repair Success

REFUEL YOUR ENERGY

N FE

RKP

PAGE 31

RB R ENDE

PAGE 34

EMPATHY: AN EMPLOYEE RETENTION TOOL?

March 2020 | fenderbender.com 1 E 23 PAG

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march

03.20 / VOLUME 22 / NUMBER 03

Winters' Tale Bob Winters manages a pair of productive Ohio shops due in large part to his ability to rally the troops with frequent, and positive, communication.

F E AT U R E

C A SE STU DY

S H O P TA L K

In its new Best Workplaces annual feature, FenderBender highlights key elements of the best workplace cultures in America.

One Alaska shop has forged dealership partnerships to stand out within a competitive marketplace.

Ohio shop general manager Bob Winters coaches and inspires employees, in an effort to create a vibrant workplace.

BY KELLY BEATON

BY MELISSA STEINKEN

BY COURTNEY WELU

FLAT 6 PHOTOWERKS

CULTURE CLUB

WORK IN TANDEM

COACH 'EM UP

Printed in the U.S.A. COPYRIGHT ÂŠ2020 BY 10 Missions Media LLC. All rights reserved. FenderBender (ISSN 1937-7150) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. FenderBender content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: FenderBender, 571 Snelling Avenue North, St. Paul, MN 55104. March 2020 | fenderbender.com 5

TAB LE OF CONTENTS

MARCH

QUICK FIX

How AI could impact CSR work

Appropriately maintaining lifts

The merits of cloudbased systems

The byproducts of DRP relationships

Gaining employee retention by displaying empathy

Quality Auto Body & Glass

ANALYSIS

NUMBERS

VIEWPOINT

AWARDS INSIGHT

LIGHT HITS

What makes a stellar CSR?

DRIVER'S SEAT Creating peerless body shop cultures

Honda recalls nearly 900K cars Old-School Feel The lobby area and front office at Quality Auto Body & Glass feature unique, automotiveinspired furniture.

ADAPT

SNAP SHOP

THE BIG IDEA Refuel your energy as a shop leader BY KEVIN RAINS

STUDIO NORTH PHOTOGR APHY

PAST THE PAGE

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Loans subject to lender approval. Depending on the state where your business is located and other attributes of the loan, your business loan may be issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC. Your loan agreement will identify the loan issuer prior to your signing. OnDeck® is a Registered Trademark. All rights reserved. 1400 Broadway, New York, New York.

S T R AT E G Y

IDEA SHOP Use SMART goals to hit benchmarks

CUSTOMER SERVICE How to handle your shop's most negative neighbors

FINANCE+ OPERATIONS

UPDATE Key steps for impressing clients

An SOP for flawless scanning

OUTSIDE THE LINES

IN THE TRENCHES

Build a better staff by noting employees' strengths

Make the most of each work day with careful planning

BY JASON BOGGS

BY STEVE MORRIS

PROCESS DRIVEN Advice for efficient repair schedules

GET T Y IMAGES

BY RYAN CROPPER

2020

March 2020 | fenderbender.com 7

TAB LE OF CONTENTS

ONLINE EXTRAS

CLICK ON THE LOGO BELOW FOR PRODUCT INFORMATION

ADAPT

BASF

Hunter Engineering

Matrix Electronic Measuring

PPG

American Honda Motor Company

CAPA

I-CAR

Mitsubishi

ProSpot

OEConnection

Sherwin-Williams Automotive Finishes

OnDeck

Spanesi Americas

Opus IVS

Synchrony Financial

GENUINE PARTS

AUTEL

CARSTAR

AutoNation

ECS Automotive

Intrepid Direct Insurance

LAUNCH Tech USA

TECH USA

Axalta Coating Systems

FenderBender Managment Conference

LKQ Corporation

2020

TechForce Foundation

8 fenderbender.com | March 2020

EDITORIAL Bryce Evans Vice President, Content and Events Anna Zeck Editorial Director Kelly Beaton Associate Editor Melissa Steinken Staff Writer Nora Johnson Special Projects Editor

COLLISION

Jordan Wiklund Special Projects Editor Hanna Bubser Editorial Intern

C A S T

Gabe Holzmer Editorial Intern Courtney Welu Editorial Intern Jason Boggs Contributing Writer Ryan Cropper Contributing Writer Steve Morris Contributing Writer Kevin Rains Contributing Writer

EDITORIAL ADVISORY BOARD Jason Boggs Boggs Auto Collision Rebuilders Ryan Hillenbrand Urb’s Garage and Collision Center

FenderBender’s

PODCAST NETWORK

Jesse Jacobson Heppner’s Auto Body Tiffany Menefee Pronto Body Shop Bob Pearson Pearson Auto Body Louie Sharp Sharp Auto Body Doug Voelzke Doug’s Custom Paint and Body

ART AND PRODUCTION

SERIES WITH NEW EPISODES EACH MONTH. Explore the industry’s biggest trends & most pressing topics.

Zach Pate Art Director Mitch Bradford Graphic Designer Morgan Glisczinski Graphic Designer Fue Vang Graphic Designer Lauren Coleman Production Artist

SALES Chris Messer Vice President and Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson Associate Publisher

ADVANCE.

651.846.9459 / ajohnson@10missions.com Nathan Smock Marketing Strategist 651.846.9452 / nsmock@10missions.com Ross Kirgiss Regional Advertising Sales 651.846.9485 / rkirgiss@10missions.com Shayna Smith Customer Success Representative 651.846.9460 / ssmith@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com

10 MISSIONS MEDIA Jay DeWitt President Mariah Straub General Manager and Production Manager Meghann Moore Bookkeeper and Client Service Specialist Katie Cornet Event Coordinator Tiffany Fowler Senior Digital Media Strategist Kasey Lanenberg Marketing Communications Specialist Corey Steinhoff Administrative Assistant

DISRUPT. HOW I DID IT. MSO PODCAST. VISION.

HOW TO REACH US 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender. BACK ISSUES Past issue single copies are $8. Go to fenderbender.com/backissues LETTERS TO THE EDITOR editor@fenderbender.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue call 651.846.9488 or email reprints@fenderbender.com. Opinions expressed in FenderBender are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.

LISTEN AND SUBSCRIBE SEARCH “COLLISIONCAST” IN APPS FOR APPLE AND ANDROID

PODCASTS

STITCHER

POCKET CASTS

AUTOMOTIVE GROUP

March 2020 | fenderbender.com 9

PAST THE PAGE DISCUSSIONS, FEEDBACK, CONTENT AND MORE FROM AROUND THE WEB

AI’S POSSIBLE IMPACT ON CUSTOMER SERVICE Every week, you can catch additional reporting and insights from experts in FenderBender’s Reporter’s Blog. A recent blog item explores how artificial intelligence could be utilized to replace some duties of body shop employees like customer service representatives, with regard to answering phone calls. To find the full blog entry, visit fenderbender.com/AIandCSRs.

FenderBender News in Review Each Sunday, FenderBender delivers a weekly recap of collision repair–related news straight to your inbox. And the newsletter touches on more than just the latest in recalls and acquisitions, as it includes the magazine’s latest podcast episodes and strategy articles loaded with tips for shop operators. Sign up for the magazine’s newsletters at fenderbender.com/subscribe. 10 fenderbender.com | March 2020

PODCAST PRIMER

COLLISION C A S T

Find Us on Your Digital Devices FenderBender produces six business-building podcasts per month, and the CollisionCast episodes are now available on apps such as iHeartRadio, Spotify, Apple Podcasts, Google Podcasts, and Stitcher, as well as via digital devices like Amazon’s Alexa. Search “CollisionCast” to find podcast episodes, and also rate the episodes on Apple Podcasts. And, to find the podcasts online, visit fenderbender.com/podcasts.

JOIN US ONLINE fenderbender.com fenderbender.com/facebook twitter.com/fenderbendermag fenderbender.com/linkedin instagram.com/fenderbendermag

GETTY IMAGES

REPORTER'S BLOG

Essentials for Safe and Proper Honda and Acura Repairs

Collision Industry Support from the Source

Remain a cut above Maintain your edge as an American Honda Motor ProFirst Certified program collision center

Keeping Parts Ordering Simple y Promotional Pricing upfront while you write an estimate y Easy, streamlined ordering process saves time and reduces errors

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Techinfo.Honda.com Techinfo.Acura.com

ProFirst Certified program collision centers: y Meet and maintain strict certification program requirements y Receive access to the Honda and Acura Service Information Systems and Parts Catalogs y Appear on the Honda Owners and Acura Owners ProFirst Certified Shop Locator

ProFirstInfo.Honda.com Owners.Honda.com/Collision/ Owners.Acura.com/Collision/

March 2020 | fenderbender.com 11

BY THE NUMBERS THE TOPIC S, TRENDS AND METRIC S DRIVING YOUR OPER ATION

THE IMPACT OF DRPs The 2019 FenderBender Industry Survey lends ample insight into just how impactful direct repair program (DRP) relationships are for body shops. The survey data certainly suggests that, the more DRP relationships a shop has, the better their CSI scores tend to be. The survey data also suggests that shops with DRP relationships tend to have slightly fewer challenges getting reimbursed for diagnostic scanning than shops that are on no DRPs. Here’s a closer look at the data.

SHOPS’ DRP RELATIONSHIPS* 0 0%

10%

20%

30%

4-6

1-3 40%

7-9 50%

60%

70%

80%

90%

100%

Annual revenue of $2.5 million+

CSI of 90%+

Charge 1 full labor hour for scans

Have challenges being reimbursed for scans

*Just 13 of 372 survey respondents had 10 or more DRP relationships at their shop; 92 percent of that exclusive group had an annual revenue of $2.5 million or more, and 85 percent of that group boasted a CSI score of at least 90 percent.

If you’re a shop owner trying to determine if DRPs are right for your shop, fenderbender.com can provide plenty of articles that have analyzed both sides of that insurance issue. For an article on building stronger relationships with DRPs, for example, check out fenderbender.com/strengthenDRPs. Or, to weigh the merits of cutting ties with DRPs, you may want to visit fenderbender.com/noDRPs.

12 fenderbender.com | March 2020

GETTY IMAGES, STAFF GRAPHIC

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FINES HE

AWARDS INSIGHT

AWARDS NOMINEE:

CHLOE BREWER—

CSR ABLE BODY SHOP ANCHORAGE, ALASKA

LLI

AWARDS P SION RE

FenderBender Awards Insights feature past FenderBender Award nominees. For more information, go to fenderbender.com/awards.

Going the Extra Mile for Clients B Y K E L LY B E AT O N

A few years ago, Chloe Brewer worked at a hair salon. Each day was anguish, as she toiled in a job that simply wasn’t an ideal fit. Then, she heard of a job opening for a customer service representative at a nearby body shop. It sounded like a challenging role—a fact that left the Anchorage, Alaska resident instantly re-energized. “I was fresh out of high school, so I was like ‘Wow, something with a routine—a 9-to-5 job,” notes Brewer, currently a student at the University of Alaska-Anchorage. “So, I decided to give it a try. Little did I know that I’d fall in love with it.” These days, Brewer is thriving in a customer service role that could end up becoming her career. Tim Moore, Brewer’s co-worker at MSO Able Body Shop’s midtown location, praises her eagerness to go above and beyond for customers. “Chloe shows that there are youth today who want to learn and do a great job,” says Moore, an estimator. To hear Brewer tell it, there are three relatively simple steps that allow shops’ frontoffice employees to keep customers happy. Those steps include the following:

COURTESY CHLOE BREWER

Show compassion.

Early in her tenure with Able Body Shop, Brewer was taught to take a moment, during each initial customer interaction, to ask clients a question about their personal life. Then, she was encouraged to mention that piece of information during follow-up communication. That’s why, for example, the young CSR often asks customers if they have any exciting plans for the upcoming weekend. “It’s just to distract them a little while doing the side work,” she notes. “And then, when they come in next time, you can be like, ‘How was that soccer game?’ It just makes them feel more welcomed,

and that you care, and that they’re more than a dollar sign to you. Because a lot of people come in here and they’re like, ‘Ok, they’re going to try and get me and my insurance company for as much as they can.’”

Educate exhaustively.

Brewer makes it a point to never stop educating clients. First, she explains that her employer is typically a preferred provider for many customers’ insurance company. And, she eventually makes it a point to provide customers with as much handholding, so to speak, as they might require when filling out authorization forms.

“Same with delivering vehicles,” the CSR says. “I’m always looking at them, with eye contact. I put an ‘X’ next to everything they need to sign and explain that, ‘When you sign on this line, that means you’re saying that you’re ok with this and this.’ Same thing with the final bill—I go over what everything means, and ask if they need more time to read everything.” It’s important for CSRs to remind themselves to not rush through customer interactions, she adds.

Communicate consistently.

A final way in which Brewer offers exemplary customer service is by frequently updating clients about the repair process. She emails, text messages, and calls clients, keeping them abreast of each key step in the repair process. “I’m the one who schedules all the jobs,” she explains, and “when I update customers with a phone call I tell them I’m calling them to inform them about the repair. Because our customer service survey asks ‘Were you informed on the repair?’” It’s important to remember, Brewer concludes, that CSRs are tasked with the overall purpose of leaving customers comfortable with the repair work that their employer is undertaking. March 2020 | fenderbender.com 15

EFFECTIVE MARKETING FOR COLLISION REPAIRERS In an age with such diverse marketing tactics available, it is easier than ever to have at least one marketing strategy always running. So which ones are most effective for a collision repair business and what will they cost you? For No Investment Are employees happy to refer the business? Do they represent your brand in a positive way outside of your facility? Word-of-mouth marketing is effective and easy to execute. For a Small Investment Digital marketing allows you to make an impact with minimal investments. Examples include boosting posts on social media or hosting a paid search campaign. For a Medium Investment Do not underestimate the power of local engagement. Being present at key events, networking for a charitable cause and taking time to give back are all crucial in making cause marketing effective. For a Large Investment Best reserved for promotions or special deals, traditional media can be effective in raising overall brand awareness. If you do not want to sell to a consolidator, but want marketing support, consider joining the CARSTAR family. CARSTAR is a franchise system that provides resources to enhance your business, while allowing you to continue independently owning and operating your business.

To see if CARSTAR is right for you, call 888-638-5062 or visit CARSTARfranchise.com

16 fenderbender.com | March 2020

DRIVER ' S SE AT

Culture Masters Inside the industry’s best workplaces A couple weeks ago, I was at a funeral where there were a lot of

people I hadn’t seen in a long time, so, naturally, there was a lot of chit chat and asking what I do and what my job is. A very good family friend asked me that question and after I gave her the high-level overview, she scrunched up her face and said, “Well, that’s nothing to get excited about, is it?” My first reaction was that I was surprised she said that to my face but my second reaction bordered on pity. Because this industry is something to get excited about. This industry is full of smart, savvy and downright inspiring entrepreneurs who are not only pushing the industry, but business ownership, in general, forward. That’s the exact premise behind our newest feature, “The Best Workplaces.” Over the past year, FenderBender launched a hunt for the industry’s best places to work—the shops that see the importance in building workplace cultures where employees feel respected and valued. The Best Workplaces aims to highlight businesses where “culture” isn’t just a buzzword, but is part of the value system and day-to-day of the shop. In an industry where the talent shortage is at an alltime high, we wanted to find the shops that go above and beyond in helping to develop employees, both professionally and personally, to build an all-star team and retain them. Anyone in the industry could nominate a shop for The Best Workplaces—and to our delight, the nominations poured in. From there, the edit team sifted through the nominations, whittled down finalists, and called employees from those shops to get their takes on their workplaces. The winners were selected based on a number of criteria but organization size, workforce makeup and what’s typical in the industry and region were also kept in mind. The Best Workplaces isn’t about the shops that offer the best benefits or the most impressive perks; instead, it’s about finding the shops—regardless of size, which is why we recognized four shops with different staff sizes—that have built a unique, strong shop culture that every employee buys into. I hope you take a look through the feature because not only is it inspiring and chock full of practical advice, it’s also a look at the best this industry can be. Congratulations to this year’s Best Workplaces! And, for the record, that’s exactly what I told that snobby family friend.

ANNA ZECK EDITORIAL DIRECTOR a z e c k @10 m i s s i o n s .c o m

March 2020 | fenderbender.com 17

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QUICK FIX NEWS

IDEAS

PEOPLE

TRENDS

Restorative Effects At Quality Auto Body & Glass, the lobby area has the feel of a 1950s dealership, with automotive-themed furniture.

ANALYSIS VIEWPOINT LIGHT HITS SNAP SHOP

STUDIO NORTH PHOTOGR APHY

SN A P SHOP

March 2020 | fenderbender.com 19

QUICK FIX

ANALYSIS

SAFETY FIRST

Properly maintaining equipment protects your employees and your wallet BY ABBY PAT TERSON

given all the equipment and tools required for the job. Consider: In 2018, there were 26 deaths among automotive technicians related to contact with objects and equipment, according to the Bureau of Labor Statistics. By and large, such deaths are preventable, if repair facilities properly test and maintain their vehicle lifts. In late 2019, FenderBender reported on a pair of fatal lift accidents within two months of one another. In both cases, a vehicle fell off a lift and onto an employee. And, while the most important thing is to make sure your employees are safe and accidents like these don’t happen, there are also hefty fines involved when lifts aren’t up to code. According to Emergency Health Safety (EHS) Today, OSHA safety violations increased in 2019; the fines can be anywhere between $13,260 to upward of $132,598 for repeated or willful safety violations. Fortunately, body shops can avoid fines and putting employees at risk by following these steps.

Buy a certified lift.

Back in 2018, Automotive Lift Institute (ALI) warned shops of counterfeit lift inspection labels after multiple were found throughout New York City and Long Island, N.Y. On top of these fake inspection labels, ALI President, R.W. (Bob) O’Gorman says the CE certification marking—found on all European-made products that meet the health, safety, and environmental standards under the European Union (EU)—doesn’t alone qualify as a certified and inspected lift 20 fenderbender.com | March 2020

under the international building code (IBC) in the U.S. When purchasing a lift, O’Gorman says the label to look for is the Automotive Lift Institute’s Gold Label. Without ALI’s gold label, the shop has no evidence that the lift has been third-party tested and proven to meet the safety and performance requirements of ANSI/ ALI ALCTV. This is what O’Gorman calls “buyer beware.” “Without ALI’s gold label, there’s no way that your lift will be up to standards with IBC [International Business Code],” O’Gorman says. If it’s not up to these standards, shop owners risk hefty fines and endangering their employees.

Inspect annually.

OSHA’s General Duty Clause requires employers to provide a workplace free

of recognized hazards that could cause death or serious physical harm. It all starts with getting lifts inspected a minimum of once per year by a qualified lift inspector, which ALI says operators can find by contacting their lift’s manufacturer, or even looking one up at autolift.org. When assessing fines, O’Gorman says there are three categories of citations: operation, inspection, and maintenance. First, occupational safety and health officials will make sure the operator is properly trained; second, they will check if the lift was inspected within one year; and third, they will see if the shop has a planned maintenance schedule, which the shop will have to provide proof of.

Practice proper lift procedures.

For starters, O’Gorman stresses the

GETT Y IMAGES

Collision repair can be risky business,

STRAIGHT FROM THE BOOK POST THESE LIFT SAFETY TIPS FROM THE AUTOMOTIVE LIFT INSTITUTE WHERE THEY’LL SERVE AS A CONSTANT REMINDER TO ALL LIFT OPERATORS. FOR INFORMATION ABOUT A SPECIFIC LIFT, ALWAYS REFER TO ITS OPERATION MANUAL. 1. Only trained and authorized people should position vehicles and operate the lift. 2. Examine your lift daily. 3. Do not tamper with, bypass, or otherwise override operating controls.

importance of staff members becoming familiar with the vehicle lift manufacturer’s recommendations. But, with every lift, some practices are universal. Here are the safety steps provided by ALI for all operators to follow: 1) Prep the area. Before beginning, make sure to prepare a bay by making sure the lift area is free of grease and oil, tools, hoses, trash, and other debris. 2) Position the vehicle correctly. If using a two-post or other frame-engaging lift, start by positioning supports or adapters to contact the vehicle manufacturer’s recommended lifting points. According to O’Gorman, not using the proper lifting points is a common mistake that operators make, and it can result in the vehicle being unstable.

3) Place the vehicle on lift. Next, raise the lift until the supports or adapters contact the vehicle securely, and check the lifting points again, raising the vehicle until the tires clear the floor. Shake the vehicle to confirm stability. After a final visual confirmation, raise the lift to desired working height and lower the lift onto its load-holding devices. Visually check all vehicle contact points once more to make sure each adapter or support is securely in position before going under the vehicle. 4) Remove the lift properly. Before releasing the load-holding device to lower the lift, remove tool boxes, jacks, oil drain systems, and anything else from under the lift. And when you’re done, operating controls should be returned to the neutral, or off, position when released.

4. Never overload your lift. 5. Never lift one end, side, or corner of a vehicle. 6. Never raise or lower an occupied vehicle. 7. Always keep the lift area clean. 8. Provide unobstructed clearance to and from the lift. 9. Carefully load the vehicle onto the lift. 10. Always use the load-holding device (or lock/latch). 11. Use vehicle support stands for stabilizing the load. 12. Remove anything that could block the lowering process. 13. Have all lifts inspected at least annually by a qualified automotive lift inspector. *Information provided by the Automotive Lift Institute

March 2020 | fenderbender.com 21

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QUICK FIX

VIEWPOINT

SUPPORT YOUR STAFF

The more you treat staff with care, the more likely they are to stay BY TESS COLLINS

COURTESY DANIEL SK ARLICKI

Most likely, there isn’t a single person reading this that hasn’t dealt with an angry customer. The industry you’ve chosen lends itself to this type of interaction—people thinking you’re ripping them off, or blaming you for what’s perceived to be faulty repair work. There’s no getting around it, it’s part of the territory. For as long as there are cars to fix, there will be angry customers. This article is not about handling those situations or cutting down on those events. It’s about the impact those interactions can have on your employees. According to a new study, led by the University of British Columbia Sauder School of Business in collaboration with UBC-Okanagan Faculty of Management, the University of Illinois and the University of Queensland in Australia, customer conflict is a major contributing factor when it comes to employees leaving their jobs. The study, Unpacking the Relationship Between Customer (In)Justice and Employee Turnover Outcomes: Can Fair Supervisor Treatment Reduce Employees’ Emotional Turmoil?, involved 420 retail workers and 363 restaurant workers in the Philippines and 940 call center employees in Canada, found that even when controlling for other factors (such as low pay, long hours, poor working conditions), there was a significant correlation between customer mistreatment and the rate at which employees quit. That statistic may seem daunting, since, as stated, this is an industry where customers tend to often be unsatisfied—no matter how great the service—but the study also found that the way supervisors react to their staff in such situations makes a big difference when it comes to employee retention. “Whether you quit isn’t just about the customer, it’s what’s called an interaction effect—that is, the customer mistreatment is buffered when the manager treats you fairly,” Daniel Skarlicki, study co-author and UBC Sauder School of Business professor, said in a release on the findings. “So if you get berated by a customer and your boss says, ‘That’s disrespectful, I’m going to support you,’ it reduces the effect of that customer mistreatment.” Skarlicki discusses the study and what employers should take from it with FenderBender.

What was the purpose behind this study?

Why do small business owners need to pay attention to these findings?

We know that people who are serving customers can experience mistreatment—like yelling or demanding or demeaning, which is very stressful and, in some cases, especially if they’re treated with a lack of dignity and respect, can end up taking a toll. Treatment like this impacts emotions and sense of worth. People will stay up at night thinking about it. Eventually, it starts to build up and they’ll start to look for another job because they want to make themselves whole again.

These findings are important to pay attention to because one person leaving you can have a huge impact. Most studies look into how companies deal with employees in terms of pay and working conditions; we wanted to see how customer treatment can trigger turnover. We tend to think about competition between shop owners for customers, but there’s also competition for employees. Employees believe that if they quit a shop, they’ll get treated better and feel more value somewhere else. This

Daniel Skarlicki Study co-author and Sauder School of Business professor

is especially important for shop owners to pay attention to because many customers will follow an employee, so losing an employee can also lose you a customer. If an employee is mistreated by a customer, what can an employer do to make sure he or she stays?

The way employees are treated is a competitive advantage. Shop owners need to remember that it’s not about whether or not you treat your employees with dignity and respect, it’s about whether or not they perceive this to be the case. A lot of shop owners think they are doing better than they are. Can you describe what doing this well would look like?

If a customer verbally attacks an employee, the employer has a few options. The first is before the situation even happens to let him or her know that there is a policy that allows them to get the boss in a situation where he or she feels uncomfortable with a customer. The second, if an employer witnesses the mistreatment, he or she can step in and basically let the upset customer know that you’re very sorry, but that kind of abuse is not tolerated. Afterward, as a leader, you should pull the employee into their office and let the employee know that you are proud of them for how they handled the situation and offer them coaching for next time. If you didn’t see it happen but hear about it, either through the grapevine or the employee him or herself lets you know, sit with them and ask them to tell you about the situation. Give them a chance to talk about it, don’t just tell them what to do. Let the employee talk about it, share their experience and then you can provide suggestions. March 2020 | fenderbender.com 23

News

QUICK FIX

For your daily collision repair news visit

LIGHT HITS

HONDA RECALLS CLOSE TO 900K CARS Honda is recalling 875,966 Acura and Honda vehicles to replace the front driver-side air bag. The cars might have received defective Takata air bag modules. The air bag inflators may explode because of propellant degradation after long-term exposure to high humidity, extreme temperatures, and temperature cycling. An inflator explosion may result in sharp metal fragments striking the driver or other occupants, resulting in serious injury or death. Honda will notify owners of the problem starting March 9.

US SENATOR CALLS TESLAâ&#x20AC;&#x2122;S AUTOPILOT SYSTEM MISLEADING A U.S. senator has urged Tesla to

24 fenderbender.com | March 2020

fenderbender.com/lighthits

rename its driver-assistance system known as Autopilot, alleging that the driver-assistance setup is "inherently misleading" and is subject to potentially dangerous misuse. However, Tesla said in a letter, according to a report by the Reuters news service, that it had taken steps to ensure driver engagement with the system and enhance its safety features. Tesla introduced new warnings for red lights and stop signs last year, for example. Democratic Senator Edward Markey said he believed the potential dangers of Autopilot can be overcome. Yet, he called for "rebranding and remarketing the system to reduce misuse ..." Autopilot has been engaged in at least three Tesla vehicles involved in fatal crashes in the U.S. since 2016.

CADILLAC TO UNVEIL AUTOMATIC LANE-CHANGING FEATURE Cadillac's Super Cruise is adding a feature similar to Tesla's Navigate on Autopilot, according to reports. Cadillac recently unveiled plans to add an automated lanechange feature. Using the automated lane-change feature while Super Cruise is active involves either tapping or fully engaging the turn signal stalk and letting the car work automatically. It will signal and then look for a safe gap before it executes the maneuver. Cadillac engineers have also seemingly improved other aspects of Super Cruise, specifically the way it handles maintaining speed and how it steers itself.

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BEHIND THE SCENES OF TOYOTA’S WOVEN CITY Toyota has announced its intent to build the Woven City, at a 175-acre site at the base of Mt. Fuji in Japan. The goal of this ‘living laboratory’ is to examine the cohesion of automation and humans, which could include some of the fleet management software that could affect repair schedules in the future. Key features of the city include:

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QUICK FIX

SNAP SHOP

QUALITY AUTO BODY & GLASS BY KELLY BEATON PHOTOS BY STUDIO NORTH PHOTOGRAPHY LOCATION:

Wadena, Minn. OWNER:

Gary Paavola SIZE:

5,000 square feet STAFF:

3 (2 technicians, 1 owner/painter) AVERAGE MONTHLY CAR COUNT:

AVERAGE REPAIR ORDER:

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1. ART ON DISPLAY Back in 1982, Gary Paavola briefly sold auto parts at 116 Ash Avenue NW, in tiny Wadena, Minn. Little did he know that, nearly three decades later, he would turn that facility into a collision repair shop that turns heads. These days, Paavola operates Quality Auto Body & Glass and uses the facility to display what some would consider contemporary art. The shop owner occasionally puts nearly 200 hours of work into creating furniture out of classic cars, like his front office’s desk—built from a 1957 Chevrolet. The automotiveinspired furniture immediately opens the eyes of visitors. “People come in and there’s a wow factor,” Paavola says.

2. RETRO SIGNAGE Those that drive down the main drag in Wadena (pop. 4,075) can’t help but notice Quality Auto Body & Glass’s

28 fenderbender.com | March 2020

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throwback-style signage. Nearly a decade ago Paavola painted the main shop sign, then called in a nephew for assistance in creating the signage. Eventually, after investing $3,500 total in three signs, Paavola was left with signage that sticks out in the minds of passers-by. “I’ve always liked the retro feel,” the shop owner says. “And I wanted the signage to stand out.”

3. SOUND STRUCTURE On June 17, 2010, an EF4 tornado ripped through Wadena and more than 200 homes were severely damaged. That just happened to be the very first day that Paavola had begun remodeling a building that once was a Pepsi bottling facility. The storm—which featured 170 mph winds—made Paavola think long and hard about how he wanted his shop constructed. Thus, after an investment of $250,000, the building was re-sheeted with steel.

4. ADJUSTABLE PARTS CARTS Quality Auto Body & Glass’s staff keeps shop floor efficiency rolling along smoothly thanks to a handful of parts carts, namely adjustable, foldable models from Innovative Tools (cost: approximately $375 apiece) that can easily be stacked on each other. The shop’s staff utilizes one cart for old parts and another for new parts. “We want everything off the ground and convenient,” Paavola explains, “so that it can be moved back and forth and out of the way. And, that way we have everything in one location, (so) we’re not looking for things. It’s just handy to roll the cart to the car.”

5. PRIMED FOR PDR

Paavola views paintless dent repair not only as a necessity these days, but also as an artform. That’s why he often schedules at least three PDR jobs on the same day, so the work can be done efficiently and precisely, in assembly-line fashion, in the shop’s wash bay. “To do paintless dent repair correctly you’ve got to do it all the time,” the shop owner says. “We do sublet that out, but they come to our shop so we control that.” more space to the shop.

March 2020 | fenderbender.com 29

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COLUMNS

THE BIG IDEA KEVIN RAINS

Rejuvenate and Rest

How shop leaders regain and protect their energy

MICHAEL HOEWELER, GETTY IMAGES

Somehow in the hustle of growing a

business and the bustle of raising children, I never found the time for what seemed like the unnecessary extravagance of hobbies. As I look back on those years, I also see a stressed-out, often angry-for-no-apparentreason young man who probably needed the outlet that a hobby would have provided. I turned 50 last year. This older, and possibly wiser, version of myself seems to have finally embraced the rejuvenating role of hobbies. I discovered that I love fishing (or rather catching), golf (yes, I’m horrible but what a great excuse to be outside), and riding motorcycles. I embraced all three of those in the past year in ways that border on the fanatical. And it has been beyond good for me, in both body and soul. Recently, a friend asked me how an introverted leader like me protects my energy and re-fuels my tank so as to not feel constantly depleted. Introverts who are leaders have to perform a lot of extroverted tasks that can deplete our energy quickly. We often marvel at our extroverted friends who

seem to have a never-ending supply of energy no matter how many people they interact with! For them, it seems the more people the merrier. For us introverts, let’s just say, less is more. One key I’ve already alluded to is having healthy, life-giving hobbies—but not just any kind of hobby. What we want are hobbies that make us feel young again. Rejuvenation. The word literally means “to be made young again.” When I’m coaching a stressed-out leader, that is my go-to

question: What did you do for fun as a kid? Personally, when I was much younger, I could not get enough of the outdoors. I loved to hike and camp, jump ramps on my BMX bike and ride a mini-bike much faster than I should have. As I grew, so did my toys. The mini-bike gave way to a motocross bike, then a convertible muscle car. But the loves remained: being outside and going fast. What I discovered as I went through this simple exercise of reflecting on my childhood, is that I loved the outdoors,

KEVIN RAINS Kevin Rains is the owner of Rains CARSTAR Group with locations in Cincinnati, Ohio, West Chester, Ohio and Lexington, Ky. He is also an industry consultant and founder of Body Shop 2.0.

E M A I L : kev i n r a i n s @ g m a i l .c o m A R C H I V E : f e n d e r b e n d e r.c o m /r a i n s

March 2020 | fenderbender.com 31

THE 2020 INDUSTRY SURVEY IS IN FULL SWING G I V E U S YO U R T H O U G H TS O N : KPIs, Technology, Business Strategies, and More

To participate, head to fenderbender.com/survey. Survey closes on March 31st. 32 fenderbender.com | March 2020

KEVIN RAINS

THE BIG IDEA

taking risks, and going fast. Riding motorcycles off-road hits all those buttons! I really enjoy nature, especially at high speeds. In his article “Manage Your Energy, Not Your Time,” author Tony Schwartz reminds us that we all have the same amount of time, but our energy levels are different. When we manage our energy, we are able to use our available time more fully. With more energy, the time we have seems to expand and we’re able to get more done. In this way, the path to getting more done is often counter-intuitive: Stop working, rest deeply, rejuvenate. Then come back to the tasks at hand with renewed energy. For Jewish people, this is baked right into their weekly religious practice as a Saturday sabbath. Christians often substitute Sunday for the Saturday but the idea is similar. And, culturally, these practices have led us to what we call “the weekend,” even though it’s really two days with one day being the end and the other the start of the new week. But let’s not be picky about words! Most people get a couple of days off per week and that is a good thing, if at all possible. A tricky thing about weekends, though, is that it can be easy to not really take them as downtime. This is especially true in this digital age where we have great tools that can become chains that bind us to a never-ending cycle of work. Yes, I’m talking about our smartphones. I have a love-hate relationship with mine. On the one hand, it is like a Swiss Army knife of digital tools in my pocket at all times. On the other, it allows me to be at work 24/7. What if our weeks went to 24/6 or even 24/5? What if we could actually take one or two days off completely every week? And the key word here is “completely.” I have a friend and mentor who talks about days off in archery terms. Days off work are like pulling the bowstring back. The further you pull the bowstring back, the further the arrow flies when it is released. The more rest we get, the better we are able to perform at our work. Our rest leads to the arrows of productivity flying much further. How do leaders, especially introverted ones, protect their energy and refill their emotional tanks? Less screens and more sky for me. Rhythmic periods of rest every week; week in and week out. How about you? What makes you feel young again? Do more of that this year and you may just get the added benefit of getting more done at the same time.

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A LOOK AT STAFF CULTURES THAT ARE THE ENVY OF THE INDUSTRY B Y K E L LY B E AT O N

What creates a great culture among a body shop’s staff? Great pay? Extensive benefits? Team-building exercises? The answer is yes. And so much more. If you want to set your shop apart amid 2020’s competitive hiring climate, you need to get creative. On that note, in order to pinpoint the key elements needed to build a great workplace culture, FenderBender launched the first annual Best Workplaces initiative. The magazine’s staff sifted through 100 submitted nominations of North American shops with the best workplace atmosphere,

then chose one standout shop from four categories: facilities with 15 employees or less, 16–30 employees, 31–50 employees, and no less than 51 employees. These four standout collision repair facilities go above and beyond in helping to develop employees, both professionally and personally, to build a cohesive staff. In short, the award initiative was about finding the shops—regardless of size—that have built a unique, strong shop culture that every employee appreciates. Here are the key steps required to build a great staff culture. March 2020 | fenderbender.com 35

BEST WORKPLACES

MOODY’S CO-WORKER OWNED

INSPIRE BUY-IN FROM EMPLOYEES

Shawn Moody started his business with modest beginnings but significant aspirations. At the outset of his senior year in high school, Moody built a 3-bay garage, then finagled a loan from a family member. “I started the company as a kid in 1977; I bought a piece of land and got a loan—my aunt worked at the bank,” Moody said with a laugh. “I was able to get a 15-year mortgage.” These days, Moody gets an assist from far more than just family members. His growing collision repair business currently has 240 eager employees. A key reason for that is Moody’s Co-Worker Owned’s unique ESOP, or employee stock-ownership plan. Moody established the ESOP setup in 2003, in an effort to share the wealth of the growing business with his valued employees. “The difference between an ESOP and a conventional retirement plan like a 401K,” Moody notes, “is that, typically, a 401K would be employee sponsored, and the employee would contribute to that. This is 100-percent employer-funded—there’s no out-ofpocket cost to the co-worker [i.e., employee] other than sweat equity. “When we really started growing Moody’s, I thought an ESOP would be a great way to share the wealth, so to speak, with the people that helped build the business—our co-workers. And, if you can get your 240 co-workers to think like an owner would think, that’s the real power of the ESOP. … People are empowered to make decisions.” The ESOP setup, which Moody would recommend for any shop with at least 25 employees and experienced administrative staff, has made it easy to inspire buy-in from the MSO’s workers. That’s evident on the shop floors throughout Moody’s 13 locations in Maine, where you’ll often see experienced technicians willingly spending time to mentor young co-workers. “Our senior technicians will spend that time with an apprentice to teach and train them the trade because it’s a benefit to them,” says Moody, whose business utilizes an hourly pay system. “Because, the quicker they get the apprentice up to speed, the more productive they can be. And that helps the growth of the business. So, there’s a real motive.” Moody feels that, in many shops’ more traditional, flat-rate pay setup, veteran employees are more likely to view young co-workers as a threat, and therefore are less likely to openly offer mentorship. 36 fenderbender.com | March 2020

FOUNDER: SHAWN MOODY

STAFF SIZE: 240

ANNUAL REVENUE: $3.9 MILLION PER LOCATION

LOCATION: 13 LOCATIONS IN MAINE

AVERAGE MONTHLY CAR COUNT: 2,000 VEHICLES

KEY CULTURE-BUILDERS: EMPLOYEE STOCK-OWNERSHIP PLAN, PAID I-CAR TRAINING

EMPLOYEE PERSPECTIVE: “KNOWING WE ALL HAVE A VESTED INTEREST [DUE TO AN ESOP] ENCOURAGES US TO WORK TOGETHER. ... IT’S SWEAT EQUITY THAT’LL PAY OFF WHEN WE [REACH] RETIREMENT.” –Sherry Lavoie, Northern area manager, Moody’s co-worker owned

Moody’s has also inspired buy-in from employees in three other key ways: through profit-sharing, open-book management, and encouraging charitable endeavors. Profit-sharing Like many successful collision repair businesses these days, Moody’s offers affordable health-care benefits for employees. But, the family-run business takes things a step further in terms of catering to employees, by offering veteran employees up to 4 weeks of vacation, provided they’ve been with the company for at least 10 years. But a benefit that makes an even bigger impact than that is profit sharing. Once per quarter, Moody’s management gives 10 percent of its after-tax profit back to employees. In a good year, that profitsharing essentially adds up to an extra paycheck per quarter for staff members.

“IF YOU CAN GET YOUR 240 CO-WORKERS TO THINK LIKE AN OWNER WOULD THINK, THAT'S THE REAL POWER OF THE EMPLOYEE STOCK OWNERSHIP PLAN.” –Shawn Moody, founder, Moody's co-worker owned

Open book management Once per quarter Moody’s leaders host an all-staff meeting during which management reveals every financial figure and KPI that the business produces. Employees are encouraged to offer suggestions on how the business can improve, or ask questions of Moody’s leaders. According to Moody, that type of “open-book management really allows our co-workers to be actively involved in implementing best practices and hitting goals. “I don’t know many (business owners) that are that transparent about their finances. And, what it does for us is build that culture of continuous improvement.”

Group Effort Shawn Moody has inspired great teamwork at his company by encouraging charitable endeavors.

SCOTT LINSCOTT

Charity work Moody’s daughter, Danielle, leads the collision repair business’ HR department. And, she has been instrumental in spearheading the Maine body shops’ charitable endeavors recently. These days, Moody’s employees are granted 16 hours of paid time off for charity work. “We wanted our co-workers to become more engaged in our local communities,” Shawn Moody explains. “Just by going and volunteering in the classroom of your child’s class, we would allow you to get community service time for that. Because, by you being in the classroom, it shows that you’re a good parent, and that your employer is supportive of your family time.” More than anything, Moody credits his business’ success to the fact that its leaders truly display compassion for their employees. “That’s what builds loyalty, is when people are down and you help them out,” Moody says. “They don’t forget that. That goes a long way with them.” March 2020 | fenderbender.com 37

BEST WORKPLACES

TOM BUSH COLLISION CENTER

PROMOTE FROM WITHIN

Chills sprint up DeWayne White’s spine when he recalls a workplace incident from two years ago. During one of the wellness fairs hosted by his employer, White witnessed a co-worker get taken to the hospital. “It probably saved their life,” White recalls. “Had a heart attack and just never went (to the doctor), but they caught it from this, and he ended up getting a stent. “I’ve been in the collision repair industry for 23 years and have never seen a company more dedicated to their people.” Yes, the Tom Bush Family of Dealerships has little hesitancy about giving back to its employees, as its health and wellness program illustrates. The program also sponsors walking challenges, and “lunch-and-learns” about topics like nutrition and stress relief.

“EMPLOYEES THAT HAVE BEEN HERE A LONG TIME SEE [US PROMOTING FROM WITHIN] AND KNOW WE’RE BUILDING A STRONGER TEAM.” –DeWayne White, collision director, Tom Bush Collision Center The leadership of the Jacksonville, Fla.-area dealerships also displays compassion for its employees in another manner: by frequently promoting from within. When Tom Bush Collision Center needs a new employee, leaders like White, the dealership’s collision director, look at their current staff before turning to any Internet jobs boards. Chief operating officer Telis Assimenios, who oversees the Florida dealership group’s collision repair center, worked his way up through the company in a multitude of roles. Assistant collision center manager Christine Rand worked her way up from a receptionist role. Also, it’s not uncommon for part-time porters to be encouraged to strive for a technician’s role. That has clearly inspired the dealership body shop’s staff, which has more than doubled the facility’s annual revenue since 2011, producing nearly $6.5 million in 2019. “The morale and the culture can be attributed to the fact that 38 fenderbender.com | March 2020

Promotion Code Internal promotions have fortified a positive atmosphere for collision director, DeWayne White, at his Jacksonville facility. BRANDI HILL

OWNER: TOM BUSH

STAFF SIZE: 31

ANNUAL REVENUE: $6.4 MILLION

LOCATION: JACKSONVILLE, FLA.

AVERAGE MONTHLY CAR COUNT: 211

KEY CULTURE-BUILDERS: PROMOTING FROM WITHIN, YEAR-END PROFIT-SHARING BONUSES

EMPLOYEE PERSPECTIVE: “I HAD AN OPPORTUNITY TO COME TO THE COLLISION CENTER AND HELP. ... AND, ONCE I GOT IN IT, OH MY GOODNESS. IT WAS FUN.” –Christine Rand, assistant collision center manager, Tom Bush Collision Center

we promote from within,” White says. “You’re building long term relationships, and (employees) know that you care.” White says the body shop’s leadership has an overall goal to consistently groom young employees to eventually step into larger roles when openings arise. The collision director’s philosophy about promoting from within includes two key elements: Pinpoint employees’ strengths. In order to promote an employee into a new, somewhat unfamiliar role, shop operators need to familiarize themselves with a staff member’s work history. And, shop leaders need to learn about employees’ interests and aspirations. When Rand was promoted from her receptionist role, for instance, the dealership’s leaders took into account the fact that she had experience with accounting coming out of college. “You want to put employees in the best place possible,” White says. “Christine had a financial and accounting background. That financial background, to be able to study numbers, to look at our financial statements and look for any abnormalities or successes, those were things that she demonstrated that brought her to that position.” Gather input. These days, White constantly confers with shop leaders like Rand about employees that show energy, initiative, and promise. He also pays attention to the respect that promising employees garner from co-workers. Along those lines, White recently noticed an entry-level valet worker display rare hustle, and soon tried the young employee in a wheel reconditioning role. “It seemed to be a fit and a desire of his, and it fills a need for us,” White notes. “And now he becomes a much bigger, more important part of the team.” Ultimately, in order to build an exemplary staff culture, you have to make sure employees feel fulfilled, White says. “We get positive feedback” about promoting from within, the collision director notes. “Especially from the higher-end employees like my painters and body techs that have been here a long time. They see it and they know that you’re just building a stronger team.” March 2020 | fenderbender.com 39

BEST WORKPLACES

DENVILLE BEAR & BODY SERVICE

TRAIN AS A TEAM

Denville Bear & Body Service’s recent holiday party was a sight to behold. Company vice president Kurt Leifken provided a limousine bus, then saw to it that employees were chauffeured to a bowling alley, a go-kart venue, and, finally, a staff dinner. “It was just so much fun seeing all the employees together, getting along, joking together,” recalls Frank Sanchez, Denville Bear & Body Service’s general manager. Such events “help instill team-building, and it helps instill family values.” Those types of group gatherings are part of the bigger picture for the three-location MSO that was founded in Denville, N.J. Getting more than two dozen employees to work as a cohesive unit is never easy. And that’s also why, since the collision repair business’ first year, in 1962, the Leifken family has put an onus on training as a group. Nearly six decades later, when an equipment vendor or jobber stops into a Denville Bear shop to provide training, the vast majority of employees attend, virtually regardless of their position. “All of the employees, no matter what level, they should 40 fenderbender.com | March 2020

understand all aspects of the repair,” Sanchez says. “Whether it’s a seminar on detailing and buffing, whether it’s adhesives, we have everybody attend.”

“PAYING A FEW HUNDRED BUCKS FOR DINNER DURING TRAINING, IT’S A SMALL PRICE TO PAY. ... THE TEAM TRAINING PUTS OUT A BETTER PRODUCT.” –Frank Sanchez, general manager, Denville Bear & Body

Whether the training sessions last 1 hour or 3, the training takes place around 5 p.m., Sanchez springs for sandwiches or pizza, and a sizable group of employees attends. “It helps everyone understand everyone else’s job functions, and what they do,” Sanchez says of the group training. “Our admin assistants, sometimes they even say ‘Hey, I want to understand

OWNERS: LEIFKEN FAMILY

STAFF SIZE: 30

ANNUAL REVENUE: $6 MILLION COMBINED

LOCATION: 3, BASED OUT OF DENVILLE, NJ

AVERAGE MONTHLY CAR COUNT: 250 COMBINED

KEY CULTURE-BUILDERS: GROUP TRAINING, EXTENSIVE BENEFITS INCLUDING 401(k), PTO, MEDICAL/LIFE/DISABILITY INSURANCE

EMPLOYEE PERSPECTIVE: “GROUP TRAINING HELPS WITH COMMUNICATION. IT HELPS (EMPLOYEES) LEARN WHERE ANOTHER COWORKER’S WORK BEGINS. IT OPENS UP DIALOGUE.” –John Mathews, assistant manager, Denville Bear & Body Service

Group Think Denville Bear & Body Service GM Frank Sanchez says group training unifies his staff. DENVILLE BEAR & BODY SERVICE

what these guys do,’ and they attend also. (Training) is offered to everybody.” Sanchez has no problem paying a few hundred dollars for a staff dinner from a local deli on those evenings, because the group training sessions are key to building an effective team. The training strategy has helped Denville Bear & Body, which is an I-CAR Gold Class business, produce $10 million in annual revenue and an average monthly car count of 400. The family-run business (which kept its well-recognized name even after the national Bear automotive company was sold in 1970), has built a dedicated staff. A couple factors play into that: the manner with which the company caters to Spanish-speaking employees, and its overall loyalty to veteran employees. Respect for Spanish Speakers Sanchez speaks fluent Spanish, which allows him to communicate with multiple employees who speak it as their first language. That helps the entire shop floor operate more efficiently, the general manager says. “If they have any questions that they can’t communicate 100

percent in English, I’m here to help them translate,” Sanchez says. “There’s no miscommunication.” Appreciation for Veteran Employees Sanchez estimates that 75 percent of Denville Bear & Body’s employees have been with the company for over a decade. The Leifken family has long valued the expertise of longtime employees, transitioning multiple longtime shop-workers to front office roles. That way, the company can benefit from their knowledge while easing the physical toll on veteran workers. “I’ve had guys that have been here 25 years,” Kurt Leifken notes. “We moved them to the office because they’re good guys … and they know the business.” More than anything, though, the onus put on group training has helped Denville Bear & Body survive for nearly six decades, Sanchez says. “At the end of the day, (the team training) puts out a better product,” the general manager says. “The work atmosphere and the training that’s provided for employees, that’s the key to getting them to stay and be happy.” March 2020 | fenderbender.com 41

BEST WORKPLACES

PACIFIC BMW COLLISION CENTER

OFFER MULTIPLE PERKS

The first time Andrew Batenhorst heard that his body shop staff had just taken part in yoga exercises, he could hardly believe his ears. “I was surprised,” recalls Batenhorst, the manager at Pacific BMW Collision Center, in Glendale, Calif. “These were all men that are macho guys. (But) they said it was a nice change of pace.”

“IT STARTS WITH A MANAGER BEING CREATIVE AND BEING IN TUNE WITH THEIR TEAM, TO KNOW WHAT MOTIVATES THEM.” –Andrew Batenhorst, body shop manager, Pacific BMW Collision Center

Pacific BMW offers several such perks to its employees, like massages, health screenings, costume contests, group barbecues, and food-truck lunches. And Batenhorst, who oversees the dealership’s 15-member body shop, knows that those perks—like health screenings that make flu shots and blood tests available to employees—don’t go unnoticed. The shop manager knows that technicians, painters and detailers appreciate feeling valued by their employer. “I’ve learned a lot in my time about employee engagement,” says Batenhorst, who’s entering his 20th year in the collision repair industry. “When an employee feels like they’re invisible, they start to disappear into the background, and they’re not going to produce what they need to. So, things like this” help. Clearly, the generosity has resonated with Pacifc BMW Collision Center’s staff. The staff was especially motivated in 2019, when it produced 35 percent growth in gross sales, pushing it’s annual revenue beyond $4 million. The shop boasts a 95 percent CSI score, too. “There is a cost to all this—having a lunch truck come in 42 fenderbender.com | March 2020

could be $1,000,” Batenhorst notes. “But it pays off in employee retention and engagement. Employees really appreciate that.” Batenhorst has helped forge a solid culture within his shop in other ways, too. For example, the body shop manager makes sure to: Update and analyze SOPs. Because Pacific BMW Collision Center’s staff frequently reviews its shop floor processes, every employee knows how long each step of the repair process should take, what order repairs should be done in, and who needs to provide quality checks. “Everyone here holds each other accountable, for making sure everybody’s rowing the boat in the same direction,” says Batenhorst, who also credits Pacific BMW’s leadership for “going the extra mile” for employees.

OWNER: DAVID HO

STAFF SIZE: 15

ANNUAL REVENUE: $4.1 MILLION

LOCATION: GLENDALE, CALIF.

AVERAGE MONTHLY CAR COUNT: 70

KEY CULTURE-BUILDERS: YOGA, MASSAGES, PAID TRAINING

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Observe employees’ personalities. Body shop leaders need to be intuned with their team members, taking note of what makes them tick. “Know what motivates them, and what kind of recognition they like,” the shop manager suggests. “Like, some of my guys here are super quiet, so they don’t want to be singled out in front of a group. So maybe that should be more of a 1-on-1 thing.” Utilize personalized career plans. Batenhorst makes sure to remind employees of the key objectives they’re being measured on, as well as training goals he expects them to accomplish each quarter. Then, he meets with employees every 90 days to review. By consistently clarifying and analyzing goals with employees, it helps employees envision an ideal career path.

“I know, from previous jobs I’ve had, if you don’t have that, you feel a little lost,” Batenhorst says of career planning. “You don’t know if management is on your side to help you get where you want to go in your career. Most people, when they find they have a road map of how they’re going to get there, the engagement goes up and the likelihood of turnover goes down.” While Batenhorst prides himself on reviewing SOPs and utilizing a streamlined onboarding process, his penchant for utilizing creative perks like team meals seems to have resonated with his employees the most. Those perks, the body shop manager notes, often help employees “if they’re feeling stressed. I mean, we know what it’s like in a 9-to-5 and it can get hectic, especially with the physical work that we’re doing.” March 2020 | fenderbender.com 43

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March 2020 | fenderbender.com 45

SPONSORED CONTENT

To every collision shop in the industry, For the past 30 years I’ve worked in the collision industry, and like many of you, I have experienced a lot of change. Over this time, I’ve been lucky enough to have worked for or with almost all the major stakeholders in our industry. Throughout my entire career one thing has never changed; body shops are the epicenter of the collision industry. I’ve always admired body shops for handling it from all angles – the owner, the insurer, the OEM, and oh yeah, running a profitable business. Truth be told, I’m a recovering insurance adjuster. I will admit, in my estimate writing days, I knew nothing about repairing cars, and you did. I was not about to tell you how to fix the car. However, I did know enough to ask questions and trust you. Through the years one of the most valuable lessons I learned was just to listen. Over the past year, that is just what we did. We knew if we were going to make changes, we needed your input. In 2019, we spent over 578 hours (that’s like watching Talladega Nights 390 times) researching what collision shops want and need out of a parts ordering system. If you’re a CollisionLink Shop user, I want to personally thank you. Based on all the feedback we received, we now have a vision to make 2020 and beyond easier for you to do your job. I’m excited to introduce Collision Vision, our initiative to make the tool you use all the time – CollisionLink Shop – better than ever. We have quite a few enhancements in the works so stay tuned for some exciting new features. Here are a few highlights of what’s to come. Enhance Coming early this year your ordering experience will improve. You’ll see OEM promotional part prices, upfront, inside CollisionLink Shop. No need to go back and forth with your dealer on pricing for certain parts – you’ll see the part price immediately. Differentiate Later in the year, we’re really stepping it up. This includes flagging parts you add to your estimate that do not fit the VIN of the vehicle you’re working on, which prevents you from ordering the wrong part. CollisionLink will also help you save time by sending you notifications of parts not in stock. We will also provide you, and this is a big one, complete OEM catalog access. See the parts you need, with accurate data only the OEMs – and CollisionLink Shop – can give you. Lead Next year, CollisionLink Shop will undoubtedly be your go-to source. These plans are under wraps, but I can confidently say these plans will be unprecedented in the industry. I know you work incredibly hard for every customer you serve. I can positively say for 2020 and beyond, it’s not just business as usual for CollisionLink Shop, and we’re working hard for every customer we serve. Join our journey at OEConnection.com/CollisionVision. Thanks, Bill Lopez and the CollisionLink team

STR ATEGY

IDEA SHOP

SMART Goal Setting

GETTY IMAGES

Tips for setting achievable goals with your employees When it comes to setting and completing goals, Chuck Sujansky, CEO of business consulting firm KEYGroup, suggests being smart about it—in more ways than one. SMART goals are a tool that companies use in order to set goals that will truly have an impact and motivate staff members. The acronym stands for specific, measurable, achievable, relevant, and timely. If your business goals fit these criteria, that makes for the best working environment for both the employer and employee, Sujansky notes. For example, Oscar Moreno, the owner of Integrity Auto Collision Center in Fairfield, Calif., prioritizes goal-setting through meetings and communication between himself and his employees. The shop owner consistently checks in to make sure everyone is working together toward their objectives. “The key in our shop is keeping each other accountable,” Moreno says. “It’s not me telling the guys, ‘Hey, hurry up.’ It’s team members telling each other, ‘Let’s get it done.’” Motivating your staff to have passion and care for their work is no easy feat. Sujansky focuses on effective goal-setting with a staff. With SMART goals in mind, Sujansky provides advice for shop owners struggling to get their staff members to accomplish goals.

Specific

Goals, expectations and criteria for the job should be discussed right away, so there’s no gray area for shop employees. An employee’s role defines the criteria you should use to measure their growth. If you’re specific with what you need from them immediately, you can align your goals with more success. You have to start with the job description and pull three or four key objectives, or main responsibilities, from that and try to quantify that into goals. You have to be specific and clearly state your business’s goals.

Measurable AS TOLD TO COURTNEY WELU

One key way to measure your employees’ March 2020 | fenderbender.com 47

STR ATEGY

IDEA SHOP

growth is through frequent meetings. I have a meeting prior to the beginning of the year, or the measurement period. This initial meeting is where you discuss goals and expectations, and it’ll help connect your shop’s goals with your staff’s goals. You do a joint problem-solving sessions and decide three or four key goals that are going to be accomplished. Have frequent, periodic meetings. Whatever feels comfortable for the job, but at least monthly. And take a look at where your business is at at the start of the year, what have we done so far this year, and are we meeting or exceeding our expectations? Also, where are we feeling behind?

Achievable

Employees have a tendency to low-ball their goals, while managers tend to shoot sky-high. If sales in an industry are growing at a 10 percent rate, you can

48 fenderbender.com | March 2020

reasonably expect employees to stretch to 15 percent—but it would be unreasonable to expect 50 percent. Set something that’s a stretch goal. But, at the same time, be realistic and be open to listening to feedback from employees on what they think is realistic, and come to a consensus on what the final goal should look like for the coming year. And remember: when you encounter failure in your business, it’s a coaching opportunity for the manager to help their employees improve. We try to figure out what we can do to improve those areas that aren’t meeting our targeted goals for the year. So, maybe you’re a little behind but, with appropriate action, you can get back on track.

Relevant

When you set a goal, ask yourself if that goal is going to move the business forward.

Does it contribute to the bottom line? If Not, it might not be the best goal. The manager has to base the employee’s goals on the goals of the organization. If the company’s trying to improve its sales revenue by 15 percent, then you’d want each sales employee to increase their sales by 15 percent, so you have alignment within the organization. They would sit down and the manager would communicate that to the employee and say “Okay, how are we going to do this?”

Timely

Timeliness is an inherent part of making goals. Any goal that takes longer than a year to complete becomes a long-term goal, while a shorter-term goal becomes a short-term goal. And it’s important to plan accordingly. As a business leader, you need to meet with employees and state, “This is what we have to do in order to make the business meet its goals for the year.”

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March 2020 | fenderbender.com 49

STR ATEGY

CUSTOMER SERVICE

Not So Neighborly

How to survive in an area where residents resist having body shops B Y K E L LY B E AT O N

ring nightmare—the one where you’re late for school, and late for a test you forgot to study for. And John Powers was riddled with anxiety. As he walked into a town hall meeting a few years back, Powers was not only unprepared for a meeting he had learned about just three hours prior, but he sensed the citizens of Ossining, N.Y., were out for blood. “They came at us with pitchforks,” recalls Powers, the owner of Powers Restorations. Back in early 2015, residents around Powers’ body shop seemed intent on putting it out of business. The shop facility had been at its location in a largely residential area near the Hudson River for 50 fenderbender.com | March 2020

nearly 30 years, but the area was suddenly being re-zoned. Businesses like body shops were no longer welcomed. Powers, a 20-year industry veteran who ran a $1.5-million-per-year shop, figured his only chance to save his business was to put the small town’s citizens at ease, explaining his focus on using environmentally-conscious products like waterborne paint. “It was a very hard decision to go to that meeting—it was very stressful; I’m not a public speaker,” Powers says. “There was a group of people that had started a whole movement. They said, ‘Our children are going to be poisoned.’ There were a bunch of property owners around here that had the same problem; they think all the fumes are going to go into the air.”

Dealing with residents who resist having a collision repair business nearby is something many shop owners will encounter at some point in their career. Here’s a look at how shop owners can overcome such obstacles.

Seek legal advice.

Fortunately for Powers, he sought the advice of a lawyer in 2015. As a result, he was quickly put at ease and was able to rest assured that he had already updated every necessary permit to continue operation. For example, he had gotten a fairly difficult-to-attain county health permit finalized weeks in advance of the aforementioned town hall meeting. That allowed his business to be grandfathered in and avoid further zoning concerns.

GETTY IMAGES

It was something straight out of a recur-

paint and chemical fumes, and decrease their property values. “I was just trying to get a 10,000-squarefoot facility built,” Josemans says. “That land was commercial business general, which is the most liberal zoning, and that’s why I purchased it.” That didn’t matter, however, to 170 residents who promptly signed a petition to oppose the body shop after Josemans paid to have trees cleared near a few residents’ backyard fence in August 2019. “My first mistake was to clear land and not have the permit to clear it,” Josemans says. “I thought you could just clear trees off your land. (Looking back), I would wait for a development order to be approved; most people wait for that before they clear land.” That incident illustrates how imperative it is for shop owners to look at permit information at city and municipality offices, which typically make such information readily available to business owners. In Powers’ situation back in 2015, the permit file involved was the size of a phone book. Still, he forced himself to study it. That gave the shop owner at least some level of confidence when he was faced with that all-important town hall meeting. Along those lines, Powers learned that, if he complied with an environmental survey, that it would assuage county officials. “I talked to a lawyer and he gave me the advice that ‘You’re perfectly legal, but that’s not going to stop these (citizens) from getting pissed off,’” Powers recalls. “The advice he gave me was that I wasn’t doing any wrong.” Shop owners can often find a reliable lawyer by consulting with a trade association.

Read all permits.

Michael Josemans, the owner of Beal Paint and Body in Fort Walton, Fla., received immense resistance from that town’s citizens last Fall, while he initially attempted to relocate a shop business that does $80,000 per month in gross sales. Nearby residents petitioned against Josemans’ new facility, fearing that it would produce noise pollution,

Educate customers.

During his time speaking before a town gathering, Powers meticulously explained how his shop sprays waterborne paint, and that his cross-draft paint booth system eliminated much chance for pollutants in the air. He explained that he had no qualms about spending around $20,000 for such a set up—because he cared about both his community and being compliant. In speaking to his community, he silenced many of the negative stereotypes associated with auto repair facilities. “I educated them, and ever since I haven’t had any trouble,” Powers notes. “After I went to the meeting and talked to them, it subsided and I’ve had no issue. When these things come up, you’ve got to confront them, just like you’ve got to

educate adjusters when they come to your shop for insurance jobs—you have to educate the community. Because people think we’re horrible people that run a chop shop or something.” Josemans was similarly open to speaking with disgruntled residents in Fort Walton, Fla., last Fall. After all, the longtime shop owner knew, judging by a few angry social media posts, that residents were largely uninformed about his business practices. The situation illustrated how a shop can use social media to explain their repair processes and the fact that the business meets or exceeds environmental requirements.

Extend an olive branch.

In Powers’ experience, there’s usually one member of a community that speaks loudest and serves as the ringleader in drumming up negativity toward a shop. And, if a shop owner can speak with that person in a compassionate, 1-on-1 manner, that negativity can be stopped in its tracks. Also, simply being a kind, conscientious member of the community can help a shop owner assemble allies during disputes like the one Powers faced with local residents in 2015. Case in point: he found out about that all-important town hall meeting from someone who was actually serving on the board that appeared poised to run him out of business. But, since Powers had done exemplary work on her vehicle in the past, that board member felt an obligation to inform him about the meeting. So, Powers says, extend an olive branch to your community. Throw a meet-and-greet barbecue or a community appreciation day. Take part in any and all local charity events possible. “Meet people and tell people in the neighborhood, ‘We’re here.’ You’ve got to put a face to it,” he says. “The people around you, take care of them. Because, even if those people aren’t the ones that are mad at you, maybe they know the ones that are, and they can say, ‘John’s a good guy.’ “You’ve got to talk to these people. After that meeting (in 2015) was over, after 6 months went by, I stopped having issues. And, some of the people I saw in that meeting are now my customers.” March 2020 | fenderbender.com 51

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COLUMNS

PROCESS DRIVEN R YA N C R O P P E R

The Keys to Scheduling Work Effectively A look at how to schedule vehicles during the busiest times of the year If you’re struggling to schedule vehi-

cles effectively at your shop, know this: you’re not alone. I have yet to meet any shop operator that has scheduling down pat. At my shops in Alaska, it’s still an occasional struggle. We’re in a busy time of year right now, for instance. As you’re probably aware of, winter weather can wreak havoc in this area. So, if you’re struggling with scheduling, I can certainly empathize. The best pieces of advice I can give with regard to scheduling are the following.

FUE VANG, GETTY IMAGES

Don’t schedule with off your gut.

Don’t allow yourself to be guilt-tripped by a customer, or cave in when a technician says, “I need more work.” Instead, schedule based off numbers. In other words, you’ve got to figure out how much you typically produce with the staff that you have at your disposal. You’ve got to look at the statistics. What can your shop typically produce? Then, you have to figure out, for every job that comes in, how many hours are you adding for a supplement? How many typical tow-ins are there, or what we call “cold drops,’ where the customer shows up and their car isn’t safe to drive down the road, so we take the keys. Typically we schedule everyone out. When it comes to scheduling, I’d suggest making sure you know your shop stats, that you know what your shop can produce, and then schedule the best you can based off that.

Let CSRs handle scheduling.

Our lead CSRs, specifically, typically handle scheduling for us. We have a call center, and those employees help, too. But we took scheduling away from our estimators because they often have an emotional attachment to the customer, and the customer will often beg them, saying something like “Please just get me in on Monday,” and the estimator can easily feel pressured to comply with that request. Then, the next thing you know, you’ve got 17 cars that come into your shop on Monday. So, we took scheduling away from employees that have that emotional attachment to customers. Because we realize that that emotional attachment is almost unavoidable. I mean, I get my own friends asking me, “Hey, can you get me in tomorrow at your shop for an estimate?” And, of course, I say yes. But, if I have 32 estimates tomorrow, why would I do that? The only reason is because there’s emotion involved. So, we choose employees that are able

to separate that emotion well. And that, for us, has typically been our lead CSRs— employees that aren’t being begged by the customer to bend the rules.

Work to get buy-in from your staff.

That, of course, is easier said than done. We have discussions about this on a seemingly weekly basis. But we just remind our employees that, when you shuffle things around with regard to scheduling, the problem usually just moves. We’re in a remanufacturing business. So, if the paint shop has 22 cars to paint, well, we can’t just turn everything off. So, we have to work through the issue. And that’s why we have discussions about scheduling all the time. We talk to our techs about how their performance dictates how we schedule for their team. Just like how insurance companies reward us for good performance with more work, we do the same internally. As a multi-shop operation, we also work to reward locations that are performing well with an increased workload.

RYA N C R O P P E R is the owner of Able Body Shop, with three locations in Anchorage, Alaska, and Total Truck Accessory Center.

E M A I L : r c r o p p e r @ ab l e b o d y s h o p .c o m

March 2020 | fenderbender.com 53

STR ATEGY

CASE STUDY

Win Referrals In an effort to gain more customers, Anchorage shop manager Miranda Burton decided to work more closely with dealerships.

54 fenderbender.com | March 2020

Letâ&#x20AC;&#x2122;s Make a Deal Building dealership partnerships can come down to how you leverage your business BY MELISSA STEINKEN

PHOTOGRAPHY BY FRED MOSELEY

March 2020 | fenderbender.com 55

STR ATEGY

CASE STUDY

nchorage is Alaska’s largest city, with a population of over 200,000 people. Anchorage also comprises 1,961 square miles. Yet, Anchorage is a town that feels so small, Miranda Burton, manager for Fix Auto Fifth Avenue, says that every body shop knows of and about each other. In fact, if a body shop wants to stand out and become Audi certified, for example, that means no other body shops within 50 miles of that Alaska shop can be Audi certified. So, in a town where competition thrives, how can a body shop grow? In Burton’s mind, she knew she needed a competitive edge, especially during colder months. During those months, her shop was producing about $300,000 in sales—solid, but below expectations. Burton found the key was in creating partnerships with other businesses in town and making sure her shop built upon its strengths, like its OEM certifications.

The Backstory

Burton took over as manager of the Fifth Avenue location in 2013 (there are six Fix Auto Alaska locations in total), after working in the front office of another shop and then in production management for Fix Auto. Initially, she experienced plenty of stress about juggling the profit and loss statements for the facility while also leading a team. Over time, she started to grasp how to juggle both sides of the business, in part due to tools like the Fix Auto dashboard, which tracks KPIs like in-process sales, work in progress, and capture ratio, and in part by utilizing her strengths as a manager. One of Burton’s strengths is setting a goal and ensuring that it’s carried out to completion. In that spirit, the shop manager decided to reach out to local dealerships to form partnerships. Within the surrounding 15 miles of the shop, there are four local dealerships. She wanted to receive any work coming from the dealerships because none of the dealerships had designated body shops. Initially, the owner of Fix Auto Alaska, Kekoa Iaea, went to the first dealership that had its body shop closing. He purchased the building and added another body shop there while making an agreement with the dealership to send repair work to the MSO’s facility. Then, Burton went to her local dealerships and spent about an hour talking to their leadership. In the end, she formed 56 fenderbender.com | March 2020

FIX AUTO FIFTH AVENUE OWNER:

KEKOA IAEA LOCATION:

ANCHORAGE, ALASKA SIZE:

17,000 SQUARE FEET STAFF:

19 (4 FRONT OFFICE/15 BACK-END) AVERAGE MONTHLY CAR COUNT:

11 (5 IN FRONT OFFICE/6 TECHNICIANS) AVERAGE REPAIR ORDER:

$1,000-$1,500

ANNUAL REVENUE:

$3.7 MILLION

Slick Communicator Fix Auto shop manager Miranda Burton has a strong relationship with her employees, checking in on work throughout the workday.

March 2020 | fenderbender.com 57

STR ATEGY

CASE STUDY

agreements in which the service department would pass on their work to her and she would, in return, purchase OEM parts. She partnered with three of the four dealerships. Throughout the beginning of the partnership, she also tracked how much work was being brought in by the dealership. Burton discovered it was not a significant sum.

The Problem

Despite forging the aforementioned partnerships, the Alaska body shop was missing out on money, Burton realized. Her dealership partners were sending some work to other body shops in the area based on need and time. She figured the shop needed a way to differentiate itself from competitors. As a result, Burton invested in certifications. The shop became certified for Nissan, Toyota, Subaru, Volkswagen, Ford and Audi so that it could market such certifications to potential customers. A typical certification cost the shop between $7,000 and $10,000, which includes cost of equipment and training classes. “It’s not cheap, but it’s worth it,” Burton says. Once Fix Auto Fifth Avenue became certified, the shop increased its dealership work by about $10,000, to nearly $38,000 per year. Yet, that was not a truly significant jump, Burton felt. Burton typically met with the dealers a couple times every quarter. She went in again to meet with the service department manager to see what the issue was. After observing a few interactions with customers needing body work done, she figured out where the roadblock appeared. The service department staff was not informing customers that her body shop facility was indeed certified.

Proud Recognition In order to gain dealership business, Miranda Burton went through the process of certifying her shop in numerous makes, now displayed in her lobby.

The Solution

display these pamphlets to customers to clarify the shop’s array of repair capabilities. “I knew I needed to become partners with dealerships in my area,” the body shop manager says. “Nowadays, the customer’s first phone call after an accident isn't to the insurance company but it seems to be to the dealer where they first purchased their car.”

1. Burton informed her partners that the shop’s certifications meant it was qualified to work on most vehicles and repair them to a standard that wouldn’t affect the manufacturer’s warranty.

The Aftermath

Burton eventually met with the dealership liaisons to inform them about Fix Auto Fifth Avenue’s unique selling points, such as its multiple OEM certifications. Sitting down with her representative in the service department, the body shop manager laid out her case:

2. Burton pitched how beneficial it was for dealerships to keep sending as much body work as possible to her shop. Unlike some other body shops in the area, she uses BodyShop Booster, a product which helps her turn around estimates faster and makes the process easier on the customer, who can send in photos of vehicle damage remotely. The dealership would then be able to quickly see the cost of the estimate and if they’d like to proceed with the work. 3. Burton shared a selling point that her body shop has lot porters who would be able to pick up a car from the dealership and transport it to the body shop, and vice versa. Furthermore, Fix Auto Fifth Avenue’s lot porters have undergone a background check and driver’s license test. 4. Burton gave her business partner the OEM pamphlets that detailed precisely which work the certified body shop could do. She told the service department staff members that they could 58 fenderbender.com | March 2020

Since sitting down with the dealership to hone in on a plan for sharing work, Burton has increased the amount of sales coming from the dealerships. Today, she is in contact with the dealerships approximately once per day. Now, the body shop brings in over $200,000 in work from the dealership partnerships, Burton says. She now makes it a priority to send an estimate to the dealership as quickly as possible. For example, she can send an estimate for them to approve via email within one day.

The Takeaway

Partnering with local dealerships was not without its challenges for Burton and Fix Auto Fifth Avenue. The shop sees newer vehicles that require calibration work to be done and complex repair work. And, negotiating dealer rates also proves to be a challenge. However, Burton says she’s learned that if you ask for an opportunity with business partners, a reasoned, thoroughly explained request will typically be granted. “Becoming a certified body shop is not cheap, but it’s worth it,” Burton says. “It helps when you’re competing for a spot within that 50-mile range.”

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FINANCE+OPERATIONS

Perfecting Pre- and Post-Repair Scans Follow these four steps to perfect the scanning process and get paid for your work BY MELISSA STEINKEN

unblemished, brand-new and not damaged in the slightest. The inside of the vehicle, however, can be telling quite a different story. It’s similar to how an X-ray can provide far more extensive information about a person’s brain than a simple facial expression can. And, it’s not unlike how computers often require updates to address internal issues. Vehicles are complex today and the only way to see all of the possible damage is through pre- and post-repair scans, says John Shoemaker, business development manager for BASF. And, just like going to the doctor to receive an update on your health, various circumstances can impact that diagnosis. A person who is confirmed 60 fenderbender.com | March 2020

to be better after heart surgery, for instance, might want to avoid fatty foods moving forward. Same goes with a car, says Mike Schoonover, owner of Schoonover’s Bodyworks in Shoreview, Minn. A car can be repaired, declared ready to return to the road, yet soon experience a reset in ADAS systems automatically— ultimately leading to a car that’s unfit to be on the road. According to the 2019 FenderBender Industry Survey, approximately 67 percent of body shop respondents are performing pre- and post-repair scans on every repair, and 23 percent are performing them when required by the OEM. Shops are performing scans, as research shows. But, shops may not be performing every scan correctly.

In light of pre- and post-repair scans becoming more prevalent in body shops, Shoemaker and Schoonover dive into how a body shop can perfect its process, from the first scan in the repair all the way to effectively charging for your staff’s time in performing scans. STEP ONE:

Choose the right scan tool for the job.

“One of the common challenges to this process is that people are buying an inadequate scan tool but believe they’re getting all the correct information, “ Shoemaker says. In his experience, aftermarket scanners might find a fault code but don’t have the correct calibration capabilities.

GETTY IMAGES

On the outside, a vehicle might look

Shoemaker recommends a body shop owner go to the Collision Industry Conference’s link under work products and read the “Quick Start Guide Pre- and Post-Repair Scanning” to determine which scan tool is right for them (See Sidebar: Tips to Jumpstarting Scanning). Schoonover says he has invested anywhere from $20,000–$30,000 in scan tool equipment for his staff. While he’s invested in OEM scan tools, he recommends researching options. His staff has found positive results from its purchase of the Autel scan tool. The Minnesota shop owner recommends looking at what job the tool was designed to address. Does it capture data easily and transfer into your management system easily? Data transfer was an important requirement for Schoonover. His shop is virtually all paperless, with every document stored in an electronic file, so he wanted a tool that could transfer data into his electronic system.

STEP TWO:

Nail down the time to complete each job.

Schoonover says his staff completes scans on 8-10 vehicles per morning. Shoemaker estimates the repair scan process takes about 45 minutes or slightly more. It might take about 10-15 minutes to hook up the scan tool and perform the tests, another 10 minutes to cycle through the tests, and then another 2045 minutes for the tool to find the codes and start diagnosing trouble codes. Once a vehicle is scanned at his shop, Schoonover’s team marks the car’s window to let everyone know it was scanned. He designates one apprentice technician to the job. STEP THREE:

Perfect scanning steps.

Before beginning a scan, Shoemaker recommends a shop operator ask every customer coming into the shop if they’d like a repair scan. He says the body shop staff should recommend it to the customer because the shop performing

the scan could be found liable if there are issues with the scan and not fixing the codes. To perform the scan, the car has to be at the correct operating temperature, a battery pack or jump box has to be attached to the vehicle to make sure there is the correct voltage to all sensors, the scanner has to be connected to the vehicle to ensure it is the correct make model and trim model, and the repairer should document what the scan tool finds. Additionally, a scan and a calibration must be done on a level floor, Shoemaker says. Often, of course, a scan leads to calibrating a vehicle. “A pre-scan is only the beginning,” Shoemaker says. “As you work through the car, it’s probably going to create some system faults that will lead to a calibration scan.” The Schoonover Bodyworks team is looking to dedicate one stall to perform such calibrations. The stall will be about 20 feet wide and 30 to 40 feet long. It will be placed away from natural sunlight because lighting can affect readings. At the end of the process, Shoemaker says the final scan should be performed by the person doing quality control or the production manager. STEP FOUR:

Get paid for all scan work.

Shoemaker often observes that shops record that they performed scans, but their staff lump the total amount of time spent on scanning work into one recorded number. Additionally, shop staff often neglect to specify all that happened during a scan. Schoonover says he has experienced multiple instances in which an insurance company short-paid him, claiming the dealership could perform the same scan for cheaper. In order to combat some of the pushback, Schoonover informs the parties of the risk involved in a body shop employee driving an uncalibrated vehicle back and forth between the dealership and the collision repair facility. While it is a newer form of the repair, Schoonover says scanning work is becoming a new stream of revenue for body shops. He says his shop charges around $100 per scan per vehicle. March 2020 | fenderbender.com 61

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E C SV I N .CO M 62 fenderbender.com | March 2020

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COLUMNS

IN THE TRENCHES STEVE MORRIS

Rethink Your Time

How to plan, prioritize and spend your time

NICK SPAETH

When I first started working in the

collision repair business, my first role was as an estimator. I worked for a hardcharging, energetic and successful shop owner who never missed a day of work. He taught me a lot about damage analysis and repair planning even before these concepts were prevalent in our industry. He helped me develop negotiating skills that I still use and teach today when dealing with appraisers and vendors. After about two years of working for this owner, he began to show me some basic “above the line” P&L results to help me understand the concepts of gross profit and how my estimate accuracy and cost controls were the driver of overall profitability for the business. Then, one day, he stopped coming into work. I recall that, on a Thursday afternoon, he said he was going to take Friday off because he had a doctor’s appointment. On the following Monday, he didn’t come to work and I was told by some of his family members that he had been diagnosed with an aggressive form of cancer and would be going through some intense therapies to eradicate the disease from his body. I didn’t see him again for two years. His wife came to me very soon after the diagnosis and asked me to, “stay on with the company and run the business like my husband taught you.” With the little experience I had, I knew this was going to be a very big challenge for me, but, at the same time, I appreciated the trust being placed in me by the wife and family. So I said yes to her and vowed that I would do my best to make the business thrive. I realized that I was taking on a lot more responsibility and workload, and I knew that I had to figure out how to manage my time effectively in order to keep up with the additional demands. I’m a pretty voracious reader, so I decided to start by reading some books written by well-known business leaders on the topic of time management. My desire was to find some sort of philosophy and system that I could adopt in order to best utilize the allotment of time I had every day. I naively imagined that I could read a couple of books and—prestochange-o!—I would be on my way to being an expert on time management. That didn’t happen and, in fact, I’m still

experimenting with and fine-tuning some of what I learned over the course of 20 years of studying and developing my time management skills. I want to share with you some of what I’ve learned on this journey and, if you’ll indulge me, I’ll guide you to some of the more practical and effective teachings I encountered. To begin, let me share a few notable quotes that resonated with me when I started researching time management. Many of these quotes illuminate the core principles of time management. Time management is basically defined as how you choose to plan, prioritize and spend your time. “By failing to prepare, you are preparing to fail.” —Benjamin Franklin “Lack of direction, not lack of time, is the problem. We all have 24-hour days.” —Zig Ziglar “He who every morning plans the transactions of that day and follows that plan carries a thread that will guide him through the labyrinth of the most busy life.” —Victor Hugo “The most efficient way to live reasonably is every morning to make a plan of one’s day and every night to examine the results obtained.”—Alexis Carrel The recurring theme about planning within these quotes suggests that you must be steadfast in developing a plan for every day, you must adhere to that plan throughout the day, and then you must review your outcomes and accomplishments at the end of the day. For me, this simple and sage advice sounds

deceptively easy to implement, but I’ll be the first to tell you that I still occasionally struggle with this, even today. It’s really easy to get derailed from your plans in the fast-paced world we live in. It’s easy to sluff off and stop making plans altogether. We will dig into this further in future columns, but, right now, I want to suggest that one reason that planning is so difficult is that we don’t have any real sense of what we do throughout each day. Here’s a little experiment for you to try today: At the end of your workday today, take some time to reflect on all the things you did today and write them down. You find your list may include answering emails and returning phone calls, dealing with a difficult customer, attending a webinar on marketing, etc. But I also bet that your list will include surfing the web for the latest on the sports scores, political intrigue, and celebrity gossip. I didn’t have this option way back when I started learning about these concepts, but you might want to use an app or software to help you track your time throughout the day. I did a quick search online and came up with apps like Toggl, Harvest, and Timely. You might be interested in using one of these apps or you might do your tracking the old fashioned way and use a Day-Runner or paper day calendar to jot down your activities as you go throughout your day. I don’t know exactly what your list will include, but the point is that one way to get good at planning is to begin by tracking on what you currently spend (or waste) your time. Try this for a few days and, when we take a deep dive into planning in a future column, you’ll have a head start on implementing the concepts I present.

S T E V E M O R R I S is the director of operations for Pride Collision Centers, a seven-location MSO located in Southern California. He is an Accredited Automotive Manager (AAM) and ASE-certified master technician.

E M A I L : s t ev e m @ p r i d e au t o b o d y.c o m A R C H I V E : f e n d e r b e n d e r.c o m /m o r r i s

March 2020 | fenderbender.com 63

Goal Setter Bob Winters may split his time between his two shops every week, but his approach remains the same: keep everyone working toward a goal.

64 fenderbender.com | March 2020

SHOP TALK

BOB WINTERS GENER AL MANAGER SOUTH OF THE SQUARE COLLISION CENTER MEDINA AND NORTH RIDGEVILLE, OHIO PHOTOGR APHY BY FL AT 6 PHOTOWERKS March 2020 | fenderbender.com 65

SHOP TALK

BOB WINTERS

Managing two locations is a challenge, but one that Bob Winters takes in stride. As the general manager of South of the Square Collision Center, located in both Medina and North Ridgeville, Ohio, Winters splits his time and energy between the two shops each week. “The biggest challenge is creating continuity in the business plan between the two facilities,” Winters says. “Trying to keep everybody on the same page and working toward the same end goal.” The Medina branch is larger and requires more time, so Winters spends three days per week there, and two days per week in North Ridgeville. “We’ve got a strong team in Medina and trying to develop that in our North Ridgeville facility to meet the same customer standards, that’s really what I’m all about,” Winters says. In both shops, he prioritizes creating a lighthearted environment to challenge whatever the hardships of the day may be, whether it’s a long schedule or bad weather. Winters says that he stresses to employees that, yes, it’s a car that they’re working on, but it’s the impact of that car on people’s lives that matters most. That concept generates a positive atmosphere in the business. “Spark some joy,” Winters says, with a laugh. “There’s nothing wrong with a smile.”

Personal Touch Bob Winters makes sure to focus on personal coaching with all his employees. It’s one way he creates continuity within his business.

AS TOLD TO COURTNEY WELU

I start every day by saying “good morning” to everyone. You have to start the

morning with a positive attitude and show there’s something good in what’s going to happen today. I want to get my employees to understand that even though upper management is here, they’re all important, too. I walk through the floor and get a good look at everything, talking with some individuals on the progress of the day. If there are any particularly difficult repairs going on, I check in and make sure it’s all running smoothly. I also 66 fenderbender.com | March 2020

check in with the production manager to see what I can assist with, or if we need to move anything forward. We have a production meeting each morning as well. I just sit in and pay attention to how the prior days have gone, and what kind of anticipation there is for the upcoming week’s successes and struggles.

managing all of the general dollars of the facilities. Still, I do oversee the general umbrella of the business, and that means I need to be there for the day-to-day struggles of our employees. keep workflow moving, and keep customers satisfied. I want to make sure we’re all meeting expectations.

The majority of my day is spent in the numbers. I have to pay attention to the

I focus on personal coaching to create continuity in the two shops. Most weeks,

business numbers, the sales numbers, the closing ratio, closing ROs, and

I spend three days in the Medina shop and two days in the North Ridgeville

shop, though it varies based on where the needs are. If I need to fill in for workers on vacation, or if training and process development is required at more in one facility, I adjust my time to give more energy to a shop. Since Medina is larger, I do spend more days there. To make sure that both shops are held to the same standard, I focus on personally coaching the employees in each location in the same way in order to calibrate our teams. One of the most important things I want to convey to my employees is that we’re about fixing

people—the car is just how we go about doing that. I want my employees to understand who South of the Square is, the reputation we are trying to uphold, and how our shop was originally developed, and how to continue to execute that in the future. I coach them through dealing with customers in ways that prioritize showing empathy and understanding. I am a cheerleader for the employees.

I try to stay involved with my workers and listen to their needs. I want them

to know that their struggles are important, and I’m paying attention to what they need. Did we provide the proper training for them? Do we have the right equipment? Do they have the right technical support? I try to have these conversations each day to make the workplace as comfortable as possible for everyone. I’m the bearer of bad news for the customers. I really enjoy dealing with peo-

ple. That's been kind of a passion for me. However, in my role, I interact most March 2020 | fenderbender.com 67

SHOP TALK

BOB WINTERS

SOUTH OF THE SQUARE COLLISION CENTER OWNERS:

RICK AND SUSAN STICKLAND LOCATION:

2 LOCATIONS (MEDINA AND NORTH RIDGEVILLE, OHIO) SIZE:

14,000 SQUARE FEET (MEDINA), 10,000 SQUARE FEET (NORTH RIDGEVILLE) STAFF:

25 (MEDINA), 11 (NORTH RIDGEVILLE) AVERAGE MONTHLY CAR COUNT:

175 (MEDINA), 75 (NORTH RIDGEVILLE)

Great Communicator One of Bob Winters' (right) biggest priorities is communication, which is why you can always find him talking with customers and employees.

with customers that might be a bit of a struggle. I will explain some of the more technical repairs because of my background as a collision repair tech, and because I’ve been in the industry for so many years. I can offer a cleaner approach to an explanation of a customer concern than our younger estimators or CSRs who don’t have my experience. I find that when a customer understands the repair process better, it’s easier for them to understand whether it’s the value of the repair or the time frame of the repair that we’re dealing with. I’m big on communication. Our most

common issues in the shop are usually a result of a lack of communication. If we don’t individually communicate in the facilities themselves well enough, then we’re going to have a problem. I work on our internal systems that 68 fenderbender.com | March 2020

ANNUAL REVENUE:

$4.5 MILLION (MEDINA), $2 MILLION (NORTH RIDGEVILLE)

allow internal messaging, so that communication is always open and available. We need to get an understanding of the best repair process. We want the clean-

est possible process of repair and procuring parts. I spend quite a bit of time asking if we’re developing a clean estimating process, what we call a meticulous disassembly. I want to know what gets us the cleanest estimate. A major part of this is eliminating repetitive steps in our process. We want dealership parts walking in our door once instead of five times for the same car. If we take out these repetitions, it allows our internal process to be much smoother, with fewer interruptions in the workflow. I find it difficult to structure my time because the business is so reactive. With

two facilities especially, I have to react to

what happens much more than I’m able to plan and structure my days. We’ve spent a lot of time this year working on OE certifications, so there are equipment, shop, and training needs all involved that are far more reactive than something I can plan around. One thing that I do have to structure is that there are certain times where I have to sit down in my office and commit my time to making sure my administrative responsibilities are handled. I need to spend time with the numbers so that the company as a whole can meet its needs. Every day before I leave, I want to address that day’s problems. Whatever

the present day’s challenges were, whether customer or employee-related, I want to handle them by the end of the day. I don’t like to put problems off until tomorrow. It just leaves people thinking we didn’t care.

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UPDATE

WEST COAST COLLISION

Creating a Great First Impression Tips for winning over customers from the second they roll into your estimating bay

Lasting Impression Visitors to West Coast Collision are greeted by a staff that takes pride in maintaining a clean, vibrant repair facility.

B Y K E L LY B E AT O N

Be seen in the community.

When FenderBender spoke with Romano a decade ago, his shop did $1.5 million in annual sales. In recent years he has added a pair of satellite locations, and the facilities have combined to grow the business’s sales figures four times over. One of the keys to that accomplishment, Romano notes, has been planting the seed by marketing his business through community involvement. When there’s a charity golf event in the area, for instance, West Coast Collision makes its presence felt in the form of onsite promotion and giveaways. As a result of getting out and about within the community, “people get to know you,” says Romano, who handles much of his business’s marketing by himself. “And, as time goes on, you get to be well-known, 70 fenderbender.com | March 2020

you gain a good reputation, and your (online, customer-review) ratings improve.”

Provide shop tours.

It’s easy to get in the good graces of potential customers when your staff is transparent. And there’s no better way to accomplish that than by letting your shop’s visitors take a quick tour of your shop floor, allowing them to rest assured that the back of the shop looks as impressive as the front. “When they walk out to the shop area for (even) two minutes,” Romano says, “when they get home they think ‘That’s where I want my car to get fixed.’ “People say it all the time: ‘It looks so nice that I’m sure you’re going to do a nice job on my car.’”

Give away goodies.

One way to quickly win over customers who are parents is by keeping their kids occupied during unexpected visits to a body shop. West Coast Collision’s staff accomplishes that by giving away tickets to the circus, or magnets, suckers, or caramels, not to mention free Matchbox cars. Romano, whose business boasts a CSI score of approximately 95, says it’s well worth spending money (specifically, nearly $2,000 per year on the Matchbox cars) to keep customers’ children occupied and content with candy or a toy. “Parents are always appreciative,” of the giveaways, the shop owner notes.

Stick to your script.

Above all else, the key to effectively building a positive brand image as a shop owner is to be consistent, Romano says. In other words, have repetition with regard to every marketing endeavor you use, and constantly communicate with customers. “If you’re doing a one-time thing, it’s usually not going to work,” the shop owner says with regard to marketing. “If you’re not doing it all the time, then you’re wasting your money. Because people have a short memory.” Consistent marketing, Romano adds, “builds up over time. And, for us, it has definitely helped build a really strong brand.”

FILE PHOTO

In a bid to stand out among 14 other body shops in his area, Chuck Romano has developed a clear cut marketing strategy. Create a great first impression. Then, never rest on your laurels. “The long and short of it is the customer experience,” says Romano, a veteran of 40 years in the auto industry who owns West Coast Collision in Cape Coral, Fla. “You can never stop (marketing). You have to do it every day.” From the second customers roll into the estimating area at West Coast Collision, Romano wants them to feel like they’re at a classy and immaculate facility. He makes sure the parking lot is free of any weeds or cracked pavement. He makes sure his office area resembles a four-star hotel’s lobby, with granite countertops and leather furniture. And, the shop owner makes sure customers are greeted promptly and cheerfully. After all, as Romano noted in a 2010 FenderBender article ( https://www.fenderbender. com/articles/2872-branding-tips-for-a-great-first-impression ), most customers size up a shop within a few seconds of their arrival, and having a pristine facility can quickly shape a visitor’s perception. That’s why the Florida shop owner takes the following steps to make sure his shop leaves a lasting impression with customers.

March 2020 | fenderbender.com 71

COLUMNS

OUTSIDE THE LINES JASON BOGGS

Square Peg, Round Hole How to appreciate your team for who they are

ics. We were talking recently and he was venting to me about one of his coworkers. He said, “She’s so detail-oriented and needs to have a plan with five steps for every little thing. It takes away from my creativity and spontaneity! I hate that she’s that way.” I said, “What?! You should love that she’s that way.” I told him to think of it in sports terms: You love playing offense and scoring goals, but you are only able to do that if someone is focusing on playing defense. You need to counterbalance each other. The lesson there is that, so many times, we want to make everyone in our business or our company the same. We want everyone to have the same strengths and we want them to strengthen that weak point so they’re like our best performer in each category. I think there’s a few reasons we do that: One, sometimes it’s easier. It’s easier to focus on people’s weaknesses. I don’t know if it’s an innate skill; I think you have to consciously focus on being positive. Two, sometimes it can mean you’re not confident in yourself. What we actually need to do is let our team members be who they are. If you can appreciate your people for their actual strengths and use your team in that way, you’ll get a lot further. I’ll give you an example: I don’t believe there’s a good reason to be late for anything. I don’t believe it exists. We have one guy who's been here for 15 years and he’s frequently late. It used to drive me insane. And I know, it sounds bad: Why would I put up with that? But what I’ve realized is that he’s also the guy who’s always last to leave. If I ask someone to stay and get it done, he’s the first to volunteer. I respect people who want to get out of here when the day’s done. I’m fine if you leave one minute after the clock hits 5; that’s the deal we made. But, it’s super valuable to me that he’s willing to stay 72 fenderbender.com | March 2020

late. He’s worked on Saturday or Sundays so many times. It’s rare that anyone else will commit to working weekends even once. As long as he doesn’t infiltrate the team and cause others to also arrive late, I’ve been able to live with it because it ends up balancing out. His work ethic far outweighs that small quirk. Another example is two of our techs in similar roles. One is incredibly organized—he knows where all his tools are at any given moment. But, he doesn’t always push himself. The second tech, on the other hand, is less organized; he spends more time looking for the right tool. But, he works his butt off. The result? One tech might not get the most done, but when he is working, none of it is wasted time. And, while not everything the other tech does might be considered “valuable,” he never spends any time goofing around or on his phone. They balance each other out. Here’s where you need to change your mindset: It might sound like I have issues with both techs. And that’s natural, because most people want everyone to work hard all day. Plus, it’s easy to see when someone next to them isn’t working as hard as they are. But that’s not a very good indicator because, what are they actually working on? If it isn’t productive, that doesn’t benefit the company.

And I can say, with confidence, that these two techs are productive, because when I evaluate their performance over a set time period, they are very consistent with overall production. There’s not a championship-winning team that doesn’t consist of players with different strengths and weaknesses. The New England Patriots don’t sit there and complain that their defensive lineman can’t throw the ball with the accuracy of Tom Brady, do they? And they don’t expect the field goal kicker to be involved in as many plays as the middle linebacker is, either. A high-performance team is made up of players with different strengths and weaknesses. What’s important is that, when they perform together, the outcome is a win for the team, not the individual. When we know the role of each player on the team, we can start to appreciate what they are good at, and learn to live with their shortcomings. You need to look at the employee, objectively, and have a true understanding of all their strengths and all of their weaknesses, and how that balances out. I don’t think this is an easy concept to grasp. My 25-year-old self would laugh at this column and call myself weak. But, today I know that I can manage a team far better than my 25-year-old self, and I can sleep a lot better at night as well.

JASON BOGGS is the owner of Boggs Auto Collision Rebuilders in Woodbury, N.J. He has attended the Disney Institute and Discover Leadership, and has studied lean manufacturing processes.

E M A I L : j a s o n @b o g g s au t o .c o m A R C H I V E : f e n d e r b e n d e r.c o m / b o g g s

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