The MSO Project - March 2018 by EndeavorBusinessMedia-VehicleRepairGroup

WHAT YOU NEED TO

BUILD AN EFFECTIVE TEAM PAGE 22

INSIDE SERVICE KING’S

INNOVATIVE APPRENTICE PROGRAM PAGE 10

6 KEYS TO

A COHESIVE BRAND IMAGE PAGE 28

S T R AT E G I E S A N D I N S P I R AT I O N F O R M S O S U C C E S S

DETAILED APPROACH HOW SHANE STEELE RAPIDLY (AND SUCCESSFULLY) SCALED GEORGIA’S ELITE AUTO COLLISION PAGE 16

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ACQUI S ITIONS OCTOBE R

CARUBBA COLLISION ADDS THREE SHOPS IN NEW YORK Joseph Carubba, president and CEO of Carubba Collision, announced that Carubba Collision has acquired and opened three new shops in New York State. The first addition to the Carubba Collision family was the acquisition of Vern’s Auto Body, located in the Capital District of New York State in Amsterdam. The shop will retain all the employees of the former Vern’s Auto Body including Vern’s wife, Sherry O’Brien. The second shop is located in Utica, N.Y. The 30,000-square-foot building was the former Westinghouse plant. It will serve as a flagship store for the Carubba Collision. The final shop is the second Syracuse location and it will complement the existing Carubba Collision stores in Syracuse and Auburn, N.Y. These three acquisitions now make 17 stores that share the Carubba Collision brand.

CARSTAR OPENS LOCATION IN N.Y. CARSTAR announced the opening of CARSTAR Ferber Automotive in Angola, N.Y. The location is owned by Thomas S. Ferber. This comes a month after the MSO opened its first two locations in New York City. N OV E M B E R

FIX AUTO OPENS TWO CALIF. LOCATIONS Fix Auto USA continues its expansion with the addition of two California locations, bringing 8

the total number of Fix Auto franchise locations to 119. Fix Auto Santa Maria, the first location in California’s Central Coast is owned and operated by Hector Paz. Fix Auto Sunnyvale, the 17th franchise location in Northern California and the 66th in California, is owned and operated by Steve Springer and Mary Oliver, who also jointly operate Fix Auto Gilroy and Fix Auto San Jose.

MIKE’S AUTO BODY OPENS SECOND SHOP IN FLORIDA Mike’s Auto Body opened a new location in Brooksville, Fla., in November. This is Mike’s Auto Body’s second location in Florida. “When we began reviewing equipment for our new facility, we decided on the Spanesi 360 Concept line of equipment, which included frame straightening benches, spray booths, and prep stations,” said John Gannon, owner of Mike’s Auto Body. “Spanesi provides the most comprehensive set of advanced technology tools for repairing our customer’s vehicles.” “We are excited to partner with Mike’s Auto Body to deliver a suite of vehicle repair technologies to their new facility,” said Timothy Morgan, COO of Spanesi Americas. “With Mike’s Auto Body reputation and focus on customer satisfaction, we knew that they would be a great partner to utilize Spanesi’s advanced vehicle repair solutions.” Morgan finished by saying, “Orazio Spanesi, founder of Spanesi SpA, parent company of Spanesi America’s, has also

flown to the USA to be part of the festivities along with Simone Spanesi, president of Spanesi SpA. We are so excited to have our founder at this event to celebrate with the team of Mike’s Auto Body.” DECEMBER

SERVICE KING OPENS 23RD HOUSTON LOCATION Service King Collision Repair Centers announced the opening of a new Houston location. With the new repair center, Service King grows to 23 Houston locations and a total of 334 locations in 24 states across the U.S. The Richardson, Texas-based company opened its first Houston location in 2008. The 27,000-square-foot facility provides Service King the additional capacity to repair about 200 vehicles per month.

GERBER ACQUIRES 23RD WASH. LOCATION The Boyd Group has acquired Bernie’s Custom Paint and Collision Repair in Turnwater, Wash. The collision shop has served the community for 43 years and is located one mile, south of U.S. 101.

Don’t Back Down On page 12 , you’ll find a case study about Shane Steele and his five-location operation in Georgia, Elite Auto Collision. Steele’s slick growth plan—outlined nicely by FenderBender’s Tess Collins in this piece—is atypical of what many see as the current industry climate. Successful, expanding small- to mid-sized MSOs are now seen as the exception in the consolidating collision repair marketplace. Steele doesn’t see it that way, though. He’s not bucking a trend; he’s creating one. As you’ll see in this piece and the others that make up this edition of The MSO Project, those who innovate and push boundaries can—and will—succeed. Steele isn’t slowing down, and as he explains, neither should you.

GERBER ACQUIRES SMALL MSO IN OHIO The Boyd Group, which owns Gerber Collision and Glass, acquired a three-location MSO in the west side suburbs of Cleveland. The centers were previously Suburban Collision Centers, with locations in North Olmsted and Berea, both suburbs in Cuyahoga county, the second largest county in Cleveland.

Bryce Evans, Editorial Director

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TRENDS+ANALYSIS

National Recognition Dudley Light, regional director U.S. Department of Labor (left) presents Sean Huurman (right), Service King chief human resources officer, with the certificate of registration.

TYRA BREMER VICE PRESIDENT OF TALENT DEVELOPMENT SERVICE KING

A Certified Success

SERVICE KING’S APPRENTICESHIP PROGRAM RECENTLY BECAME THE FIRST IN THE COLLISION REPAIR INDUSTRY TO BE CERTIFIED BY THE DEPARTMENT OF LABOR BY TESS COLLINS

How has the apprenticeship program grown since it launched in 2015?

We’ve seen enhanced relationships with the schools as something that’s really evolved over the last couple of years. In the beginning, it was up to us to get out there and educate the schools and the parents and really champion the benefits of the program. Now that we’ve had graduates and seen successful body shop technicians enter the workforce, we have schools coming to us. The schools are now taking a proactive role in educating the parents on the benefit of not only pursuing this as a career, but also what happens after graduation.

COURTESY SERVICE KING

In June, an executive order was signed by the White House to promote the growth of apprenticeship programs across the U.S. In December, Service King officially received certification for its Apprenticeship Development Program from the Department of Labor (DOL), making it the first apprenticeship program in the collision repair industry to receive such recognition. The official signing ceremony was held on December 21 at Service King’s National Support Center in Richardson, Texas. Tyra Bremer, vice president of talent development at Service King, attended the ceremony and said that it was “heart warming” and “exceeded her expectations.” Bremer, who spoke with the MSO Project back in March of 2017, says that since the time of that interview, the program has grown to 42 locations with over 100 graduates in the workforce. After such a successful end to 2017, Bremer says the program shows no signs of slowing down and with the additional funding and notoriety that comes along with the recognition, she’s excited to see continued growth in 2018. THE MSO PROJECT

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Being officially registered by the DOL sounds significant, but what exactly does that mean?

It means a couple of different things. Because we’re certified, Service King is now eligible to receive educational and workforce funds. This allows us to reinvest money into the growth of our program. From an organizational perspective, the apprenticeship program is not a low-cost investment, so getting the support of these additional funds allows us to invest more in growing the program and allows us to continue to promote more opportunities in the industry and be able to bring in more new talent. The other piece is that it brings more credibility to our program. Ultimately, we’re all about providing the best training experience for aspiring body technicians. For Service King, it’s another feather in our cap and it’s also a boost for our industry as a whole as far as promoting opportunities for this field. How do you plan on leveraging this new credibility?

I think from an industry perspective, many parents aren’t aware what a lucrative and rewarding career the trade holds for their children. I think this certification will bring more awareness to careers in the collision repair industry and parents will start to see it as a good choice for any of their children that may not want to pursue a four-year degree.

curriculum, vetting the setup and ensuring we have the right verification measures for the program, which we do. From the DOL’s perspective, they want to make sure that the training provides the students with the quality skills and competencies to be successful and confident enough to be safe in their field. We did have to go through a lot, but the DOL also invested a lot of their own time because they wanted to approve us. It’s not just them wanting to build a program, they want to make sure that they’re certifying the right programs.

“OUR PLAN IS TO BRING ON NEW GRADUATES AND REFILL CLASSES STARTING IN 2018. WE SHOULD HAVE 150 NEW APPRENTICES STARTING IN 2018.” T YRA BREMER VICE PRESIDENT OF TALENT DEVELOPMENT SERVICE KING

Service King is the first in the collision repair industry to have an apprenticeship program recognized; how did you bring it to the DOL’s attention?

There were quite a few steps. It took a team of Service King teammates to help us through this process. It began with going out and doing a lot of research and finding the right contacts within the DOL. Especially with the new act that was signed, the government is very interested and there are a lot of people invested in the success of this executive order. Once we were in contact with the right people, they were very accommodating. However, it was a lot of paperwork and it took an entire team to go through it. In addition to the paperwork, it’s vetting the

What kind of information did you have to provide to the DOL?

We had to provide a great deal of information regarding the curriculum itself and show the percentage of time spent doing certain things. For example, the percentage of time students were in the classroom, doing handson work and pursuing continuing education credits. Even though Service King is the owner and facilitator of the Apprenticeship Program, we require students to get I-CAR certifications while they are in the program.

The DOL made sure that we required outside continuing education credits. They wanted to make sure that we had the right steps in place to verify the knowledge the students were receiving so that when they do graduate, they had the skills and competency to complete safe and accurate repairs. Were there minimum requirements to become certified?

Yes. Based on the industry, there are different requirements. So, the same percentage allocation for time spent doing certain things may be different for the collision repair industry than for the manufacturing industry, for instance. There was an entire list of qualifications that we had that we had to meet at a minimum. The great thing was, we met every one of those qualification without having to make any changes to our program. We didn’t build the program with this in mind, so that was phenomenal. What do you have in mind in 2018 as far as furthering the program?

With the additional government support, our plan is to continue to bring on new graduates and refill classes in 2018. We should have 150 new apprentices starting in 2018. What advice do you have for other shops that are setting up an apprenticeship program?

First, make sure that you have a solid relationship with surrounding colleges, vocational schools and technical schools in your area. Next, make sure that you have a truly structured curriculum and that it contains different types of learning. It should have onthe-job training and also include development of personal and professional skills and include classroom-based learning. Lastly, I would recommend looking up your contacts with the DOL in your local area and to get a conversation started. As I mentioned, because of the White House executive order, they’re eager to help all organizations that are in an industry that can facilitate an apprentice-type program. It’s all about getting out there and investing the time in finding the people that will help you. THE MSO PROJECT

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A Visionary Through smart choices and meticulous planning, Shane Steele continues to grow the Elite Auto Collision empire.

THE MSO PROJECT

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CASE STUDY

A WINNING BUSINESS SENSE BY HANGING ON TO BOTH LOCATIONS DURING A TRANSITION PERIOD, SHANE STEELE WAS ABLE TO CONTROL WHO WOULD MOVE INTO THE LOCATION HE WAS MOVING OUT OF

BY TESS COLLINS PHOTOGRAPH Y BY TIM ROGAN

Opening five shops in the span of four years is no small feat. But, when Shane Steele, owner of Georgia’s five-location Elite Auto Collision, knows what he wants, he goes after it. And what Steele wanted was to own the property of all of his locations. “I didn’t want to wake up 20 years from now and have put all of this money into a business and not own it,” Steele says. So, when the landlord he was leasing his flagship Athens location from refused to sell him the shop rather than lease, Steele decided to find a new location that he could own. A self-proclaimed process and systems person and student of PPG’s Green Belt training, Steele knew that if he was going to transition his flagship

location, he would need to have a solid plan in place. Within nine months, the new location was up and running. The time frame is typical of many shops that are opening, but what is unique is the fact that—for almost three months after the new location was opened—Steele made the conscious decision to have both the new and existing Athens locations running in order to make a seamless transition. Not only that, but those extra three months of leasing his original location allowed him to broker a deal with his landlord that allowed him to have a say in who took over the lease. By making smart business decisions and having a detailed plan, Steele is on pace to continue to grow his empire at a rapid rate. THE MSO PROJECT

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CASE STUDY

THE PURCHASE

Steele found the perfect building in a nearby furniture store. It had a prime location on a busy street in Athens and was 33,000 square feet. The only problem? It wasn’t for sale. “I had searched all over for a place that was for sale that sparked my interest,” says Steele. “When I finally saw a location I liked, I picked up the phone.” It was lucky he did. The current tenant was actually preparing for retirement, so he was ready to sell the location to Steele at a fair price. He purchased the furniture store with the help of an SBA loan because he had to put less down (10 percent vs. 20 percent) than with a traditional loan. By doing this, Steele had more money to purchase equipment for the shop. Upon purchasing the new location, the store was gutted and made to Steele’s specifications. The floors were stripped and replaced with concrete epoxy floors. New air piping was installed and two new paint booths were added. During the move into the new shop, he acquired another shop and its equipment. Steele was able to take some of the equipment from the original Athens location, as well as from the shop he acquired, and use it in the new shop. Because of this, he didn’t have to spend as much on brand new equipment. From the acquired shop, Steele brought a frame machine and a spot welder. With the location purchased, it was time for Steele to execute his plan. THE PLAN

Over 90 percent of the first-time customers that Elite Auto Collision sees is sent from insurance companies. Because of this, Steele knew that it was essential that they were not inconvenienced in any way, which meant there could be no lags when it came to cycle time. The same went for the shop’s high rate of return and referral customers. 14

Making Moves Owner Shane Steele (right) started the transition to the new location by moving a small team over to the new location.

To keep things running smoothly and accommodate the same amount of work it always had, Steele made the decision to keep the original location as long as necessary, and even had a few months where both locations were up and running and performing repairs. He created a financial plan for the transition that included all of the costs that he could foresee during the transition. He factored in $50,000 for overhead costs, the amount he would have to pay any staff members that were needed at both locations during the overlap period, construction, equipment costs and rent for the original facility until he found a desirable tenant to take over his lease. Once the shop was ready to start making

repairs, Steele brought a small team to the new location where some of the work from the original location was sent to. Steele started by moving his lead technician, painter and estimator over to the new location. As more work was completed at the new location, he continued to move people over. Within two and a half months, the majority of all of the repairs were happening at the new location. THE TRANSITION

When all of the construction at the shop was complete, it was time to make the move. Since Steele had slowly transitioned the staff and the majority of the repairs were already happening at the new

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location, there wasn’t much left to do. When the time came, Steele alerted all of his partners to the change of address for the shop and just like that—it was done. He made the call on a Friday in March and by Monday, the insurers were referring work to the new location. The old shop remained open with a staff member that let any walk-in customers know of the change for one month. Since the majority of the shop’s work came from insurers, there weren’t too many customers that weren’t aware of what was going on. “For the first half of the month, she had maybe 2–3 people per day. After that, she was really bored,” Steele laughs. Having her there was all planned

ahead of time and the money that it would cost to do that was laid out in Steele’s plan. The last step of Steele’s transition involved finding a tenant to take over the lease for his previous Athens location. It wasn’t necessarily his responsibility, but because the new location and the original location are only a mile away from each other, Steele wanted to ensure a direct competitor didn’t move in that closely. There aren’t many commercial buildings in the Athens area that are ideal for body shops, so Steele knew his original shop would be a hot commodity when he moved out of it. Since Steele had such a positive relationship with his landlord, he was able

to convince him to let him decide who would take over his lease. Because Steele was under a month-to-month lease, he was able to scope out candidates as long as he agreed to pay the monthly rent until the space was filled. “I was looking at dealerships and parts departments,” Steele says. Then, Steele found what he was looking for—a MAACO shop. “MAACO isn’t a direct competitor of ours; we offer different services,” Steele says. Even though it cost him more money out of pocket right away, keeping the competition at bay will save him down the road. THE MSO PROJECT

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CASE STUDY

Elite Auto Collision

A LOOK INSIDE SHANE STEELE’S NEW ATHENS LOCATION BY TESS COLLINS PHOTOGRAPH Y BY TIM ROGAN

A nearby furniture store in Athens turned out to be exactly what Shane Steele was looking for to replace his flagship location of the Georgia-based Elite Auto Collision. The 33,000-square-foot building was in a prime location on a main road in Athens, Ga., and was less than a mile away from his current location. Steele, a fan of PPG’s Green Belt training, consulted with a number of different people during the remodel of the shop in order to create the most efficient shop possible. Since moving in to the new location, Steele, says that the new shop has lowered its touch time by one hour per day per car. That breaks down to be a 33 percent decrease in cycle time.

1 //

INCREASED VISIBILIT Y

When driving by the shop, it’s almost impossible to miss it with the lit up Elite Auto Collision sign that pays tribute to the University of Georgia, located right in Athens. The shop often puts up playful sayings on the marquee, such as “Go, dawgs, go,” around game time. The shop sees a lot of customers affiliated with the university, so it’s a great way to catch their attention and show community spirit.

2 //

EX TERIOR FACELIFT

When Steele and his crew moved in, not everything was just the way he wanted it—including the parking lot and the windows facing the road. Steele repaved the parking lot and also added a mirror-like effect to the windows, so that anyone that had an office in the front with an outward-facing window would not have to deal with the glare and it also keeps the temperature in the building cooler. Keeping his customers and staff happy is a priority for Steele; that’s why he pays special attention to the temperature inside the Georgia shop. Along with mirrored windows, the shop is also heated and air conditioned. Steele says that it’s the only shop in Athens that does this.

3 //

A WELCOMING AREA

Each of the lobbies has a similar color scheme and welcoming feel, but they’re each unique. The customer waiting area includes a TV, coffee bar, a men’s and women’s bathroom that is for customers only, and more University of Georgia paraphernalia, including a photo of a bulldog and a signed helmet from a few of the players that attended the opening day celebration. 16

THE MSO PROJECT

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Elite Auto Collision Location:

Athens, Ga. Owner:

Shane Steele

Size:

33,000 square feet Monthly Car Count:

170

Annual Revenue:

$4.5 million

*Information is for Athens location only

4 //

AN EFFECTIVE USE OF SPACE

In order to fit the body shop’s 50 full-sized vehicle capacity, every inch of space available must be used effectively. Throughout the different areas in the repair process, there are designated stalls for each vehicle. Steele says that a common misuse of space is vehicles not being pulled all the way into an area or taking up too much space. By sectioning an area off, this allows the flow of work to continue consistently without having to stop everything to move cars in and out.

5 //

MOBILE ORGANIZATION

The shop sees a lot of vehicles, which means it also sees a lot of parts. In order to keep all of that organized and allow techs to have easy access and the ability to easily get them to the vehicle, the shop has 75 parts carts on wheels. The number of carts is to account for new and damaged parts, as well as the ones that are being taken off. Depending on the job, some repairs require more than one carts, which is why having over 70 carts comes in handy. Each cart has a number that corresponds with a location. For example, cart No. 1 belongs in the space that says No. 1. The ROs are printed out and can be placed in the cart. Once a cart has been selected, the technician writes down the cart number(s) on the windshield of the vehicle that is being worked on.

6 //

DESIGNED EFFICIENCY

Steele says that the bumper wall was all about efficiency. “Bumpers can be prepped and ready before a vehicle gets there,” Steele says. “We put the bumper wall up so we could get bumpers that were ready to be painted moving.” THE MSO PROJECT

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BUSINESS BUILDING

5 Tips for Rebranding

THE MARKETING MANAGER FOR 10-LOCATION NAGY’S COLLISION CENTERS SHARES WHAT SHE’S LEARNED GOING THROUGH A REBRAND

THINKSTOCK

BY TESS COLLINS

At the end of August, Nagy’s Collision Centers unveiled updated branding for all of its collision, Pro Touch and Power Sports locations. Maria Hostetler, marketing manager for the 11-location MSO, says that the rebranding was part of a strategy to align all of the areas of Nagy’s business in response to its growth. The rebranding is focused on the common thread of providing “next-level service,” which the MSO will continue to provide at all of its businesses: Nagy’s Collision Center, Power Sports and Pro Touch. “As the business grew, so did our audience and we wanted to appeal to our entire customer base,” Hostetler says. Once Nagy’s made the decision, there was still plenty of work to be done. “An overall rebrand is never easy,” Hostetler says. “It is a commitment that takes dedication from staff and a willingness to change what you have been used to for so many years.” Nagy’s rebrand is currently being rolled out across the company strategically, starting with the areas of most importance and easy updates and working through all of its branded content. Nagy’s started with key items like business cards, brochures, email marketing tactics, social media and billboard. The next step will be updating all building signage. Hostetler shares what she’s learned throughout this transition and her advice for getting through the process.

KNOW WHEN THE TIME IS RIGHT. If your brand is no longer meeting your needs or isn’t conveying a customercentric message about your company, Hostetler says it may be time to rethink. “Don’t update the look of your band just because you want a new look,” Hostetler says. “Update your brand based on your marketing needs and plans for the future. If you feel that your company is so much more than your logo or brand portrays, it may be time to consider a rebranding.” Nagy’s began working with The Impact Group, a full-service marketing and public relations firm, in April. While working with The Impact Group, Hostetler says that it became clear that Nagy’s needed to align all of THE MSO PROJECT

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BUSINESS BUILDING

the areas of its business and that the best way to do this would be through rebranding.

IT’S MORE THAN JUST A LOGO CHANGE.

IDENTIFY YOUR NEW DIRECTION. Once the decision has been made to rebrand, it’s time to think about what direction you want your company to go in. “We wanted a brand that paid homage to our rich history, while allowing for growth in the future and withstanding the test of time,” Hostetler says. Nagy’s decided on “next-level service,” which has always been a part of Nagy’s business strategy, even if those exact words weren’t always used. Hostetler says that it’s also something that will remain consistent with the company—regardless of its size or growth.

THINK LONG TERM. For those that are in the process of rebranding, Hostetler stresses the importance of remembering that it requires an investment of both time and money. 20

Two Generations Dan Nagy (right), Dave Nagy (center) and Ron Nagy (left) all sport the shop’s new logo.

Hostetler advises that shops go into a rebranding with a sound plan. “Having a timeline for rolling out the rebranding will allow you to prioritize what’s most important to your rebranding efforts, what items need to be updated first and how long the rebrand will take from start to finish. It’s important to keep your history and the company’s legacy represented through the new brand,” she says.

HAVE A PLAN FOR GETTING THE MESSAGE OUT. While making the transition, customers may be confused as to what is going on. It’s important to keep them and any business partners you may have in the loop, says Hostetler. To kick off Nagy’s rebrand, a number of press releases were sent out to all of the

local market and major publications (including FenderBender). This ensured that all of Nagy’s customers, including insurance agents, were reached. In addition to the press release, Hostetler says the team communicated to customers through email marketing and a written letter. Social media was another effective way of getting the message across. “We have a really strong presence on Facebook and Instagram, so it was a natural place to spread the word and do so some really fun, visually appealing tactics, such as a big collage photo on Instagram,” Hostetler says. Perhaps most importantly, make sure your employees know what’s going on. After all, as Hostetler points out, they are the first point of contact for your customers and if they’re not sure what’s going on, your customers will be even more confused.

COURTESY NAGY’S COLLISION CENTERS

“The rebrand of Nagy’s business is representative of the consistency of the level of service that customers can expect to receive from any of the Nagy’s businesses,” Hostetler says. “Whether it’s Nagy’s Collision Center, Power Sports or Pro Touch, customer can expect to receive the ‘nextlevel service’ that the Nagy family has built a reputation upon and has provided over the last 44 years.” Nagy’s did, however, create a new logo. In fact, it created six that highlight the various aspects of Nagy’s offerings, including mechanical service and collision repairs for motorcycles and ATVs. However, it went further than that. Nagy’s created a set of brand standards that served as a guideline for all marketing materials, giveaways and logo usage. The standards include recommended fonts, guidelines from branded apparel and file types for using the logo electronically. “The key is consistency,” Hostetler says. “No matter what your logo design or brand message is, keep it consistent.”

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BUSINESS BUILDING

Putting the Right People in Place

BY IDENTIFYING STRENGTHS WITHIN HIS TEAM AND KNOWING WHEN TO LET THEM SHINE, JOSH MILLER HAS ASSEMBLED AN ALL-STAR TEAM WITH AVERAGE MONTHLY SALES OF $250,000 BY TESS COLLINS

JOSH MILLER SHOP MANAGER CARSTAR STROUDSBURG

Leading the shop, it’s me and Billy. Our

biggest thing is getting the right people in the right place. Our best month, we did $334,000 in sales. We were able to do that because we have the right people and we know of what each person is capable. When we’re looking to hire someone, we’re very selective. I can’t stand drama.

One bad egg can spoil the rest. I tell people upfront that I don’t deal with drama. I look for skill, obviously, but there are certain people that can be molded into what you need without all of the necessary skills up front.

COURTESY CARSTAR STROUDSBURG, THINKSTOCK

At 6-foot-2, 280 pounds, Josh “Tiny” Miller (the nickname is a bit of a misnomer) is hard to miss. In fact, Miller remembers a time that a co-worker of his at CARSTAR Stroudsburg (one of four CARSTAR locations in the Pennsylvania area owned by Legacy Autobody Group) commented in awe at how Miller ran around the shop. “He told me that he had never seen a manager run around the way I did,” Miller says. “He then told me, ‘If he can do it, I can do it.’” Even though this staff member was inspired by Miller’s actions, he’s quick to throw the praise right back to his team, which is made up of four technicians, two painters, a detailer, a production manager, a full-time mechanic, a parts manager, a CRS and an estimator. “We’ve got a great crew,” Miller says. “Everyone is phenomenal. We built one hell of a team, and we’re still building it.” Miller, who started at the shop in body, moved up the ladder to become production manager and for the last year and a half, has been the shop’s manager. Serving in different positions, Miller knows the type of people that he needs to fill each position in order to be successful. Take Billy Matejcek, for example, who was Miller’s choice to fill his previous position and take over as production manager. “We talked before the transition happened,” Miller says. “He’s a very good tech, he did quality work. Together, we decided we were going to make changes happen.” Since the two joined forces and moved into their new positions, the shop boasts average monthly sales of $250,000. To what does Miller attribute his shop’s success? His staff, of course. THE MSO PROJECT

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When I get into the shop, most of the body and paint staff is already there. I

get in around 7 a.m. I check my messages, get everything started and then I call Billy and our estimator, Matthew, down. We talk about what’s going on for the rest of the day. We print out a sheet for every car in the shop with information on it like when it’s due out, parts and any other updates. This probably takes half an hour.

A PRODUCTION MANAGER’S TIPS FOR RUNNING A SUCCESSFUL SHOP

On Mondays and Wednesdays, we have

Matejcek and Josh Miller share this sentiment. Matejcek says that if the right people are placed in the right positions and have pride in what they do, everything else will fall into place. “It takes each gear to be as strong as the next to make the machine run smoothly and in unison,” Matejcek says. If the people aren’t a good fit, Matejcek says that owners or people in charge should not be afraid to hire or fire, no matter how long that employee has been there.

a big production meeting for the entire shop. Billy is a huge part of this. He created the production board that we gather around and reference. The board lists each tech, the vehicles that have been assigned, and where it’s at in the repair stage. Knowing what each guy can do and what

to do at each stage is so important. During the teardown, you need to get supplements up front and get those parts. It’s all about keeping on top of problems. By taking the time to prepare ahead of time, it’s easier to avoid the day-to-day issues that slow repairs down. If we meet our sales goals for the month,

Billy and I will go and buy the guys an awesome lunch. It’s a great way to get together and keep morale up. Something I really stress with my team

is that honesty is key. Especially when it comes to customers. Let them know right away if there’s an issue. They’ll be much more understanding if you tell them up front. Call the customer right away. An apology goes a long way. After we’ve set ourselves up for the day, my tasks vary day to day. I’ll help

out anyone that needs it or work on any paperwork that falls on my desk. Customer updates are very important to us, we actually won an award—Best in Class Service from the business council—for our updates. I make sure that customers

Billy Matejcek, production manager at CARSTAR Stroudsburg in Stroudsburg, Pa., shares what he’s learned about running a successful operation. “There’s no one right way, but there are a few basic components that you need in order to manage a successful body shop,” Matejcek says. “It’s all about finding what works for you.”

Put the Right People in The Right Place.

Implement a Process.

Beyond the people, it’s the process that Stroudsburg’s has in place that has allowed the shop to do so well in sales. Matejcek says that Stroudsburg’s success starts with the front office. “The mentality of your front office estimators should be to write the estimate in such a way that the vehicle can go from disassembly to paint without stopping,” Matejcek says. Matejcek says that the key to a good cycle time is all in the teardown. A 100 percent teardown must be completed. “Everyone hates it when a car is due out and at the last second, you find out that you have the wrong headlight or need an additional part,” Matejcek says. Problems like that can be avoided from the start with a diligent repair process that includes a 100 percent teardown. For the parts department, Matejcek says that it’s essential to have someone in the department that is really on top of it. He or she should be working to find the closest parts possible, because this will decrease cycle time. Mirror matching parts is also something that Matejcek says should be done right away in the parts department. The goal of everyone at the shop should be to find a system that doesn’t stop or slow down the process.

Communicate, Communicate, Communicate.

Matejcek says that once the vehicle is in the shop, communication is the key to the success of that repair. “Your techs need to know what exactly is going on with the vehicle that he or she is working on,” Matejcek says. “This includes parts, supplements, and so forth. Your job [as a member of the leadership team] is to provide the technicians with the tools that they need to complete the repairs and they won’t know what those are unless you tell them.” In order to ensure this is done, two production meetings are held per week to inform the technicians of any hold-ups and what is needed to be done on each vehicle.

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BUSINESS BUILDING

are being updated daily. Each of our customers should feel like his or her vehicle is the only one in the facility. When a customer first comes in, we have them fill out an information sheet that lets us know his or her preferred method of contact. I’ll usually call either way to create a more personal connection. Before I leave, I make sure that all of my

I work those extra hours by choice. I’m

very dedicated. Matt [Dewalt, one of the owners of Legacy Autobody Group] gave me this opportunity. He believed in me and I’m not going to let him down.

COURTESY CARSTAR STROUDSBURG

paperwork for the day is complete—my desk has to be totally cleared off before I leave. Then, I look over the production schedule and I get everything set that I need to for the next day. The shop closes at 5, but I’ve never left that early. A Collective Effort Josh Miller is quick to throw all all of CARSTAR Stroudsburg’s credit right back to his team.

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Six Keys to a Successful Opening Day Event

BY TESS COLLINS

On Nov. 11, the Brooksville, Fla., community welcomed the second location of Mike’s Auto Body with a grand opening that featured antique cars, giveaways, food, music and even a mechanical bull. “There wasn’t a day that went by when we were building the new location that we didn’t have people stop in to ask what was going on,” says Felicia Weisberg, the shop’s office manager. “We figured with so much interest, we should celebrate it and share it with the community.” For the team at Mike’s, the grand opening represented over a year and a half of hard work and was a way to celebrate that and extend its reputation into a new community. The new location, which is about 20 minutes away from its Spring Hill location, was built because the flagship location was at capacity. Not only did opening a new location answer Mike’s Auto Body’s need for more space, it also answered the Brooksville community’s need for a large body shop to service all of its needs. Weisberg says that before the 30,000-square-foot shop opened in the area, there were only a few smaller body shops for the community to choose from. Because of this, the proximity to the first location and the positive word-of-mouth that it had in the built up in the area, the Mike’s Auto Body team knew that this was an ideal location for its second shop. Planning the grand opening took about three months. Weisberg and Elizabeth Gannon, who co-owns the MSO with her husband, John, were the key players in planning the celebration. At first, Weisberg dedicated about an hour each day toward planning the opening. As the date approached, Weisberg doubled and sometimes tripled that. In the end, their hard work paid off. Thanks in large part to the involvement of the local businesses and vendors donating items (including food) the event cost less than $5,000, which includes the cost of entertainment and 300 goodie bags. Over 1,000 people attended the grand opening, along with 12 local businesses and seven vendors. With a population just shy of 8,000, according to Suburban Stats, those numbers speak for themselves. Although the location is still new, Weisberg says that 70 percent of the customers that have come in have mentioned that they heard about the location from the grand opening. Although this is the first grand opening that Weisberg has planned, she hopes to be a part of the planning process as Mike’s continues to grow its reach. Weisberg shares what she learned in her first experience planning an opening day celebration. 26

Grand Opening Fun Mike’s Auto Body’s opening day featured a variety of activities, including a mechanical bull.

PICK THE RIGHT TIME.

FELICIA WEISBERG OFFICE MANAGER MIKE’S AUTO BODY

This sounds obvious, but there are many factors that go into getting people to actually attend an event—starting with the date. The very first thing that Weisberg did was pick a date and a time that would attract the most people. The event was thrown on Saturday, making it possible for people who work during the week (including Mike’s employees) to attend. The grand opening started at 10 a.m. and went until 3 p.m. “It was an ideal time because it wasn’t too early and it would last long enough so people that were doing something early in the morning or had to work an early shift could still attend,” Weisberg says. Another reason for the date was because

COURTESY MIKE’S AUTO BODY

BY FINDING WAYS TO CELEBRATE ITS RELATIONSHIPS WITH THE COMMUNITY, ITS VENDORS, AND ITS CUSTOMERS, MIKE’S AUTO BODY WAS ABLE TO THROW A SUCCESSFUL OPENING DAY EVENT

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it happened to be Veteran’s Day. On top of many people having it off, it also gave Mike’s the opportunity to show its support of veterans. One of the tow truck drivers at Mike’s is president of the local VFW, so Weisberg saw an opportunity to celebrate the local chapter and set up a booth.

APPEAL TO THE MASSES. “Once we picked the date, we needed to figure out a way to get people of all ages to want to come out. We really wanted people to bring their families,” Weisberg says. This is where the activities came into play. Providing food was key, since, according to Weisberg, people will always come out for free food. The grand opening had a combined total of 1,000 hot dogs and hamburgers and went through 1,400 bottles of water. To make the event stand out from a typical grand opening, the shop partnered with The Frigid Frog, an Italian ice shop, to provide a cool treat. Showcasing customer cars, giveaways and a mechanical bull were all activities that were chosen to appeal to a wide variety of ages. The total cost of the entertainment was around $2,500.

UTILIZE YOUR VENDORS. “Our vendors were excited,” Weisberg says. “They all wanted to be a part of this special day.” Because Mike’s has a great relationship with all of its parts vendors, it was easy for Weisberg to get them to sign on. During the grand opening, seven of Mike’s vendors set up booths and gave stuff away. The vendors donated the food, which covered a huge expense.

GET THE LOCAL BUSINESSES INVOLVED. In a small community, getting the locals involved is essential. Weisberg, a selfdescribed “face-to-face” person, went into local businesses and told them all about the grand opening. She then asked if they would hang up a flyer and beyond that, if they’d be interested in putting an item in the goodie bags. The 300 goodie bags, which were given out in limited quantities at the beginning of each hour and restricted

to one per family, featured Mike’s branded treats and coupons, menus and other small trinkets from local businesses. “The local Chick-fil-A gave us a free sandwich coupon for the bags,” Weisberg says. “It was a great incentive for them because 300 people now had their phone number and information and were encouraged to go to Chick-fil-A next time they were in the mood for a sandwich.”

Parting Advice…

For any shop that’s looking to throw a grand opening, Weisberg says to get the community and local businesses involved. She says that because they were able to do this, they saved both time and money.

SPREAD THE WORD. Beyond having the information displayed in the window of local businesses, Weisberg partnered with a local radio station and put out a 15-second commercial on local television promoting the opening. Weisberg says that several radio stations contacted her to partner with them, but the one that they decided on had a special connection. “The lady that does the marketing for the station has been a customer of ours for years,” Weisberg says. The station made on-air announcements about the event and then came out on the actual day and played music. Although Mike’s did have to pay for a portion of this particular station’s time and others offered to do it for free, Weisberg says that they felt the decision to celebrate its customers was more important than saving on the bottom-line cost of the event. The shop also put all of the information on the new location in its monthly directory and posted on its website.

MAKE IT COUNT. Like Weisberg says, people will always come for free food, but it’s important for them to remember what the event is actually for. That’s why, during the celebration, the shop was open and areas were roped off so people could walk through and see all of the equipment. “It was important to have the shop open for customers,” Weisberg says. “People are always questioning big buildings and what’s inside. It was great for them to get a look.” Throughout the day, staff members took shifts answering questions from people touring the facility.

A WINNING GOODIE BAG Sixty goodie bags were given away at the top of each hour of the opening, resulting in 300 total. Weisberg says as a team, they decided to do it this way in case of a mad rush happening at a certain time of the day, which would have left people who came at a different time empty handed. A goodie bag is not only fun for people attending, it’s also a way to market your business. Weisberg shares what was inside hers: • A reusable canvas Mike’s branded tote. This was used to store all of the items. • Thermal cups • Hand sanitizer • Lip balm • Golf towels All of these items were branded with Mike’s logo, phone number and address. The items were carefully selected because they could be used by either gender and a wide variety of ages. In addition, small businesses and vendors provided items to be placed inside, including menus and magnets. The total cost of each bag was $8.

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Keep it Consistent WITH THREE LOCATIONS THAT EACH HAVE A NICHE MARKET, BOBBY COBB HAS HAD TO FIND WAYS TO MAKE SURE EACH STAYS TRUE TO THE BRAND

A Cohesive Brand With three Today’s Collision Repair locations, owner Bobby Cobb found ways to give them all the same feel.

BY TESS COLLINS

UNDERSTAND THE LOCATIONS’ DIFFERENCES. For the most part, customers can bring their vehicles to any of the locations. However, there are certain cases where a customer may go into one location and be redirected to a different facility, which can create confusion and inconveniences the customer—something Cobb wants to avoid at all costs. Another priority for Cobb is to make sure that no matter what vehicle a customer has or which location is visited, every interaction and repair has the consistent, highquality feel that Today’s Collision Repair 28

has created over the years. The struggle has been communicating that each location services different needs, but that each shop is under the same leadership umbrella and provides the same experience. Cobb’s locations are as follows: • Chelsea (opened in 1989): Located close to downtown Boston and near a Honda dealership. This shop is Honda ProFirst certified. • Malden (opened in 2003 ): The MSO’s hub for high-end vehicles such as BMW, Land Rover, Jaguar,

Mercedes and Acura. The shop has also has Tesla, Honda, and Acura ProFirst certifications and is on its way to achieving Land Rover and Jaguar certifications. • Stoneham (opened in 2017): Equipped with both standard and an oversized paint booth, this location can repair high-top Sprinter vans. Before opening this location, Cobb had to turn this type of work away.

GET THE MESSAGE ACROSS. Whenever a new location opened, some of the dealerships and customers had a difficult time comprehending that depending on the amount of damage, there might be a location that was better suited for them. It wasn’t always about which location was closest. Since dealerships were having a difficult time with this and many were confused as to where they should send the work, Cobb enlisted a liaison to help. A few years ago, Today’s Collision hired a service writer that works at the service center fora BMW dealership. It’s his job to go around and make sure that the dealerships in the area know which location to send their repairs.

COURTESY TODAY’S COLLISION REPAIR CENTER

Today’s Collision Repair Centers is dedicated to providing the best service possible, but in order to do that, customers may have to go to a different location. Since opening his first location in 1989, Today’s Collision Repair Centers co-owner Bobby Cobb has opened a new location every 14 years, resulting in three locations in Massachusetts. Each shop has a niche market based on its location and its capabilities, which has sometimes confused customers and caused Cobb to rethink how he runs his facilities. In order to be successful, he knew he needed to create a cohesive brand, but he struggled doing this when each shop serviced a different type of customer. “The things that make our brand can and should be present in each transaction with the customer,” Cobb says. “The differences in the shop shouldn’t change that. The difficulties arise in making sure the communication and focus remains a top priority in each shop and that this message reaches every employee.” In the past, Cobb admits that this is something that he’s struggled with, but since opening the third location, he’s become hyperfocused on creating a more consistent brand through a number of different strategies.

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One of the makes that Cobb has had a particularly difficult time with is Mercedes. Because of the Chelsea location’s proximity to the airport, Cobb says many Mercedes drivers go there first. While this can be fine, depending on the type of damage, it might be more beneficial for them to go to the Malden location first. For example, a smaller job can be sent to either location, but a “trainwreck” may need to be redirected. When a customer calls, the staff knows to find out what vehicle they

have, the type of damage, and where they live in order to direct them to the location that will best suit their needs. Another aspect of the plan is to update the hold message to let customers know in what each of the locations specialize. Another way that Today’s Collision Repair communicates this is by updating its website. Currently, the team is reviewing the website to include the different location’s specialities while also getting the message across that all three locations are under the same brand.

BRING IT BACK TO YOUR MISSION. TODAY’S COLLISION REPAIR MISSION STATEMENT: • Today’s continues to grow and operate under the same principles as it was founded— honesty and integrity. • Today’s provides the highest quality automotive collision repairs, utilizing state-of-the-art equipment and materials, as well as employing the finest technicians in the industry. • Today’s stands behind its craftsmanship with a written warranty. Our services and expertise will be remembered long after your vehicle has been repaired. • Today’s strives to provide job completion in a timely manner after determining the specific services and repairs necessary for the vehicle. We will not sacrifice the standards that protect you, your family and your investment. • Today’s values each and every customer that we meet and serve. Our staff is highly trained to repair your damaged vehicle to its original condition and is also 100 percent committed to customer satisfaction. Our company maintains an outstanding reputation throughout the insurance and collision repair industries. • We’re only happy when our customers are happy.

Today’s Collision Repair hasn’t always had a mission statement, but since creating one in 1995, it’s made a world of difference. “Our marketing director, Vicki McInnis, and myself realized we needed one because we were struggling with brand identity,” Cobb says. So, Cobb hired a consultant to help him put it together. The shop was built on grassroots values, and that was something that Cobb wanted to replicate in each new facility that opened under the Today’s Collision Repair name. The mission statement is posted in each of the shops and serves as a visual reminder of what the brand stands for. “If we’re ever questioning something that we’re doing, we can just refer to the mission statement to make sure it aligns,” McInnis says.

CREATE SOPs. Another initiative that Cobb has tackled that he hopes will help with consistency is the implementation of SOPs. “It’s probably been our most difficult task, tying in each location with the same SOP,” Cobb says. For the last six years or so, Cobb says he’s realized the importance of standard procedures because, especially with the third location, it’s been difficult to remain consistent. Each shop had a set of procedures, but they were pieced together in a binder, making it difficult to

share, or they were very specific to the certain location. Cobb knew this needed to change in order to create a cohesive operating approach for each location. This is going to be a huge area of focus in 2018. As of right now, the SOPs that are currently in place focus on collecting and documenting information. Cobb, along with Today’s Collision Repair’s other co-owner, Kevin Kyes, plan on collaborating with key people in each department—customer service reps, estimators, technicians and painters—to build SOPs that are specific to those key players.

IDENTIFY LEADERS. Close to 30 percent of the staff at Today’s Collision Repair has been with the company for over 10 years and 50 percent have been there for over 5 years. With half of the staff boasting over five years of experience with the company, the team knows what’s important to the company and holds the values needed. Cobb says that this was a huge help in opening each location, as he’s been able to move experienced team members into positions at newer locations. When the Stoneham shop opened, there were three teams at the Malden location, which Cobb says wasn’t necessary. Because of this, he was able to move an entire experienced team to the Stoneham location. “That team was already familiar with the Today’s Collision brand and was able to lead by example and show the new team members how things were done,” Cobb says.

LISTEN TO CUSTOMERS. How does Cobb measure success? By listening to what the customers have to say. Since customer satisfaction is such a crucial part of Today’s Collision Repair brand, Cobb personally calls any customer that submits a review below 5 stars. “I want to know where we fell short and correct it right away,” Cobb says. THE MSO PROJECT

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