FENDERBENDER.COM / APRIL 2020
BOGGS:
DOUBLE YOUR GOAL SETTING SUCCESS RATE PA G E 74
Strategies & Inspiration for Collision Repair Success
RO AUDITS: A SECRET MONEYMAKER? PAGE 51
Talk it Out At Glaser’s Collision Center, owner Aaron Glaser has learned to run his shops through nonverbal communication.
THRIVE IN BUSINESS AND AT HOME
PAGE 5 4
Listen
UP FUELING EFFECTIVE SHOP FLOOR COMMUNICATION PAGE 3 6
April 2020 | fenderbender.com 1
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Familial Atmosphere Third-generation shop owner Adam Tritz, left, says a key to his success is having enthusiastic employees in place in every staff position.
F E AT U R E
PROFILE
C A SE STU DY
S H O P TA L K
36
44
58
66
The secrets to getting your staff to work as one, through great shop floor communication.
Don’s Body Shop is thriving due to the trust it has built within its community over five decades.
One shop owner began making estimates by appointment and capture rates soon spiked.
Shop manager Victor Gutierrez has spurred shop growth through consistent training.
BY KELLY BEATON
BY COURTNEY WELU
BY MELISSA STEINKEN
BY MELISSA STEINKEN
JASON WINKELER
LISTEN UP
TRIED AND TRUE
IN MY ESTIMATION
TRAINING DAY
Printed in the U.S.A. COPYRIGHT ©2020 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. April 2020 | fenderbender.com 5
TAB LE OF CONTENTS
APRIL
QUICK FIX
13
22
29
How to recruit Gen Z employees
Easing COVID-19 Concerns
Securing shops from cyber attacks
14
25
30
Employee benefits that pay dividends
Steering students toward collision repair careers
Louisville Collision Center
ANALYSIS
NUMBERS
VIEWPOINT
17
26
AWARDS INSIGHT
LIGHT HITS
Embracing new vehicle technology
18
DRIVER'S SEAT Overcome limiting beliefs as a leader
6 fenderbender.com | April 2020
Pristine Facility Louisville Collision Center recently moved to a 40,000-squarefoot dealership that it completely tweaked and revitalized.
40
Researchers trick Tesla automatic cruise control into speeding
ADAPT
SNAP SHOP
33
THE BIG IDEA Solve your shop’s issues by asking probing questions BY KEVIN RAINS
ME AGAN JORDAN
PAST THE PAGE
S T R AT E G Y
51
IDEA SHOP Increase profit by auditing ROs
54
LEADERSHIP Examining how to budget your time wisely as an owner
57
PROCESS DRIVEN
62
72
FINANCE+ OPERATIONS
UPDATE Tips for firing without trepidation
The secrets to maximizing time on small repair work
74
OUTSIDE THE LINES
65
Achieve business goals by focusing on key milestones
IN THE TRENCHES Master time management with careful prioritization
BY JASON BOGGS
BY STEVE MORRIS
The keys to writing perfect job ads RYAN CROPPER
GET T Y IMAGES
54
Is your plastic welder gathering dust?
The experts at Polyvance can help. ®
TRAINING • SUPPLIES • TOOLS • FILLERS • PRIMERS • EVERYTHING FOR PLASTIC
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TAB LE OF CONTENTS
ONLINE EXTRAS
CLICK ON THE LOGO BELOW FOR PRODUCT INFORMATION
ADAPT
BASF
I-CAR
Opus IVS
SATA/Dan-Am Company
AUTEL
CARSTAR
Industrial Finishes
O'Reilly Auto Parts
Sherwin-Williams Automotive Finishes
Auto Job Central
CCC Information Services
LAUNCH Tech USA
Polyvance
Spanesi Americas
LKQ Corporation
PPG
TechForce Foundation
Mitsubishi
ProSpot
Women's Industry Network
TECH USA
AutoNation
FenderBender Managment Conference
2020
Axalta Coating Systems
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Ford
EDITORIAL Bryce Evans Vice President, Content and Events Anna Zeck Editorial Director Kelly Beaton Associate Editor Melissa Steinken Staff Writer Miranda Jama Marketing Services Manager
COLLISION
Nora Johnson Special Projects Editor Jordan Wiklund Special Projects Editor
C A S T
Gabe Holzmer Editorial Intern Courtney Welu Editorial Intern Jason Boggs Contributing Writer Ryan Cropper Contributing Writer Steve Morris Contributing Writer Kevin Rains Contributing Writer
EDITORIAL ADVISORY BOARD Jason Boggs Boggs Auto Collision Rebuilders Ryan Hillenbrand Urb’s Garage and Collision Center
FenderBender’s
PODCAST NETWORK
Jesse Jacobson Heppner’s Auto Body Tiffany Menefee Pronto Body Shop Bob Pearson Pearson Auto Body Louie Sharp Sharp Auto Body Doug Voelzke Doug’s Custom Paint and Body
ART AND PRODUCTION
SERIES WITH NEW EPISODES EACH MONTH. Explore the industry’s biggest trends & most pressing topics.
Zach Pate Art Director Mitch Bradford Graphic Designer Morgan Glisczinski Graphic Designer Fue Vang Graphic Designer Lauren Coleman Production Artist
SALES Chris Messer Vice President and Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson Associate Publisher
ADVANCE.
651.846.9459 / ajohnson@10missions.com Nathan Smock Marketing Strategist 651.846.9452 / nsmock@10missions.com Ross Kirgiss Regional Advertising Sales 651.846.9485 / rkirgiss@10missions.com Shayna Smith Customer Success Representative 651.846.9460 / ssmith@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com
10 MISSIONS MEDIA Jay DeWitt President Mariah Straub General Manager and Production Manager Meghann Moore Bookkeeper and Client Service Specialist Katie Cornet Event Coordinator Tiffany Fowler Senior Digital Media Strategist Kasey Lanenberg Marketing Communications Specialist Corey Steinhoff Administrative Assistant
DISRUPT. HOW I DID IT. MSO PODCAST. VISION.
HOW TO REACH US 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender. BACK ISSUES Past issue single copies are $8. Go to fenderbender.com/backissues LETTERS TO THE EDITOR editor@fenderbender.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue call 651.846.9488 or email reprints@fenderbender.com. Opinions expressed in FenderBender are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.
LISTEN AND SUBSCRIBE SEARCH “COLLISIONCAST” IN APPS FOR APPLE AND ANDROID
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A N SW E R I N G T H E CA L L O F O U R R E A D E R S H I P TO H AV E A L A RG E R U N D E R STA N D I N G, P R E S E N C E A N D V O I C E I N T H E F U T U R E O F T H E A U T O M O T I V E I N D U S T R Y.
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JUMPSTART: EMBRACE TECHNOLOGY. GROW YOUR BUSINESS. OWN YOUR FUTURE.
8:45–9:45 AM
SUMMIT KEYNOTE: FEAR AND LOATHING IN THE AFTERMARKET?
10:00–10:45 AM 11:00 AM–12:00 PM 12:00 PM–1:00 PM
TECH TALK: THE CHANGING LANDSCAPE PANEL DISCUSSION: THE OEM PERSPECTIVE LUNCH KEYNOTE
1:00 PM–2:00 PM
THE ADAPT INTERVIEW: A CERTIFIED FUTURE
2:30 PM–4:00 PM
TECH TALK: ADAS — A DEEP DIVE
4:15 PM–5:00 PM
TOWN HALL: WHERE WE STAND
6:00 PM–8:00 PM
SUMMIT RECEPTION
DAY THREE: TUESDAY, DECEMBER 8 7:30–8:30 AM
BREAKFAST
8:30–10:00 AM
TECH TALK: SHOP SOLUTIONS
10:15-11:00 AM
PANEL: TECHNOLOGY AS A PROFIT CENTER
11:00 AM-12:00 PM 12:15-3:00 PM
LUNCH KEYNOTE: THE SHOP OF THE FUTURE OEM TOUR: NISSAN NORTH AMERICA, SMYRNA VEHICLE ASSEMBLY PLANT
L E A R N M O R E AT A D A P T S U M M I T.C O M
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Follow Us @AutelTools
PAST THE PAGE DISCUSSIONS, FEEDBACK, CONTENT AND MORE FROM AROUND THE WEB
PODCAST PRIMER REPORTER'S BLOG
HOW TO RECRUIT GEN Z EMPLOYEES Frequently, you can catch additional reporting and insights from experts in FenderBender’s Reporter’s Blog. A recent blog item explores the keys to hiring young employees full of potential, such as expressing in job ads how your business offers opportunity for upward mobility. To find the full blog entry, visit fenderbender.com/HireGenZ
GETTY IMAGES
FenderBender News in Review Each month, FenderBender produces an Interview Series video that features an extensive conversation with one of the brightest minds in the industry. A recent video highlighted how an expansive benefits package has helped New Hampshire shop owner Derek Lighthall retain employees and rapidly grow his business. Find the FenderBender Interview Series videos online, at fenderbender.com/ topics/615-videos.
The Merits of Hands-On Leadership
COLLISION C A S T
FenderBender produces five businessbuilding podcasts per month, and the CollisionCast episodes are now available via numerous podcast apps. A recent episode featured Jeff Olender, the co-owner of two Connecticut body shops that produce a combined $13 million per year, and examined the merits of handson leadership. Learn more by accessing the episode via apps like Spotify or iHeartRadio, or online at fenderbender.com/podcasts.
JOIN US ONLINE
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BY THE NUMBERS THE TOPIC S, TRENDS AND METRIC S DRIVING YOUR OPER ATION
BENEFITS THAT BEAR FRUIT The 2019 FenderBender Industry Survey hints that it’s worth it for shop owners to incentivize employees with bonus plans and training reimbursements. While the numbers were hardly one-sided, shops that noted in the survey they offer bonus plans and training reimbursements tended to be a bit more profitable and productive than competing shops that don’t offer such benefits. Here’s a look at the top five benefits offered these days by body shop owners, as well as the KPIs that are produced by shops that offer specific benefits.
TYPES OF BENEFITS* (% OF SHOPS OFFERING)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Health Insurance (67%)
Retirement plan (57%)
Training Reimbursement (49%)
Disability insurance (44%)
Bonus plan (36%)
*Respondents were asked to select all benefits that applied to their business.
KPIs:
CSI OF 90%+
NET PROFIT MARGIN 11%+
TECH. PRODUCTIVITY OF 100%+
14 fenderbender.com | April 2020
GETTY IMAGES, STAFF GRAPHIC
LEARN MORE
If you’re a shop owner wondering which benefits you should offer your staff, you may want to read an extensive FenderBender article titled “Provide Great Employee Benefits.” In that piece, a successful Vermont shop’s co-owners noted how each element of the benefit package they offer—such as generous holiday bonuses—have paid dividends. Find the full article online, at fenderbender.com/bestBenefits.
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T
T
AWARDS INSIGHT
FINES HE
MANAGER CARSTAR MIDDLETOWN, CONN.
Being a Student of the Industry Ron Zappetillo dedicates his time to learning about the changing industry BY COURTNEY WELU
CO
LLI
AI
RON ZAPPETILLO—
IN
AWARDS NOMINEE:
R
AWARDS P SION RE
Nominate Today
FenderBender Awards Insights feature past FenderBender Award nominees. To nominate an inspiring collision repair professional, or for more information, go to fenderbender.com/awards.
“Together, we put a realistic action plan that works toward that goal,” Zappetillo says. “Of course, following up with them and holding them accountable to that action plan is key.” Zappetillo describes his consultative style as working together with owners to adapt a solution that could possibly work for them.
Recognize what’s possible. When he’s asked about what makes him passionate about the collision repair industry, Ron Zappetillo laughs. “That’s easy—I love people and I love cars. That’s what it’s all about,” he says. Zappetillo serves as a CARSTAR area manager of operations who oversees 30-plus shops and provides them with consulting and guidance. He’s worked in pretty much all aspects of collision repair, from a technician to an estimator to a manager, in independent shops as well as MSOs, and was an I-CAR instructor, as well. He’s been in the industry for nearly three decades now. “And I’m 46,” Zappetillo jokes. “So, more years in the industry than I’ve been not in the industry now.” Zappetillo’s consulting work ensures that every day is unique from the next. And, that keeps him passionate about his role. “It makes me feel good; just being a part of an industry that I love and I’m passionate about is awesome,” Zappetillo says. “I don’t know why anybody would want to come to work and have a bad day.” Here are Zappetillo’s top tips for consulting and training with shops that fall under his purview.
COURTESY RON ZAPPETILLO
Be a lifelong learner.
Zappetillo dedicates time each week to being a student. Whether that means he’s reading an article, going to a training session, using CARSTAR’s resources, or anything else, he wants to make sure there’s always a set time for him to keep learning. He knows all of the shops and their employees don’t learn in exactly the same way, and also works to make sure they can still learn from his style of teaching. “We have to look at what motivates them and help them see that the training that you’re trying to provide will help achieve their goals, and mold it to that direction,” Zappetillo says. Some people are hands-on learners, while some are better learning from books, but Zappetillo knows he has to adapt his training to align with that. And,
ultimately, that flexibility helps people want to train. “If they know their goal is going to be achieved if they learn this process or learn a different way to do it, that makes them excited and motivated,” Zappetillo says.
Do your research.
Before he gets to a shop, Zappetillo makes sure that he researches the business thoroughly. “KPIs, scorecards, financials, websites, prior notes, anything like that,” Zappetillo says. By researching such information, he adds, “I can get a story of where they’ve been and where they’re currently at today.” Zappetillo reviews all of the information with the owner, taking care to listen and understand what their goals are and what they want to do going forward.
Zappetillo consults a wide variety of shops, some small and some large, and has to adjust how he trains based on what the shop’s various capacities are. “Because of the diverse customers or shops that we have, some shops are very advanced and have multiple layers and things going on that a smaller shop might not,” Zappetillo says. “So, when I’m explaining it to them, I’m also keeping in mind what they have going on.”
Embrace the evolving industry.
“The attitude of, ‘we’ve always done it that way’ just doesn’t work anymore,” Zappetillo says. “People as a whole need to dedicate time to keep up on the new advances and changes within our industry, seeing how it’s ever-changing.” Zappetillo sees the industry’s shops as all being on a similar level right now, because much of the technology involved is new to everyone. Shops across the country have to start new with all the advances. Zappetillo encourages shop owners to keep learning and commit time to being a student of the industry. “Even if you’ve been to [a training] a few times, or been to something like it, there’s usually that nugget of information that you take away,” Zpapetillo says. “When you’re really looking for that nugget of information intentionally, you’ll usually find something.” Zappetillo wants to remain a student of the industry, and takes his role as a consultant seriously by passing down what he’s learned to shop owners. April 2020 | fenderbender.com 17
DRIVER ' S SE AT
Exercise Your Potential Lessons learned from the treadmill Last month, I wrote about my recent pursuit of hobbies, and my journey to
become a better golfer and tennis player. But, I neglected to mention another pursuit I’ve started—one that was far more difficult to start, but proved borderline life changing. Frankly, I hesitate to even write about it, but we’re all friends here, so let’s get into it. If you know me at all, you know I’m a string bean. I actually come from a long line of string beans—my family on both sides are all limbs, with knobby knees and giant wing spans. So, I was pretty much born with these puny chicken arms. I played soccer and tennis when I was a kid but stopped as a teenager and then I just … never really exercised again. Like, ever. Sure, I’d do yoga for a month here and there and I took walks, but certainly nothing that raised my heart rate. Luckily, I was physically healthy enough, but, mentally, I was unknowingly creating a damaging mindset. See, that idea that I didn’t exercise? Over time, that became part of my identity. I could never do a push-up! I’ll never be one of those people who enjoys working out. Gyms just aren’t for me. I’m just not a strong person. It’s embarrassing to even admit that, but it’s true. If you tell yourself something often enough, you really do start to believe it. A couple years ago, I even set a five-year goal to start working out. That’s right: I thought five years was the realistic amount of time it would take for me to gather the courage to start exercising. I was pretty much on pace for that goal until last year when, for a lot of reasons, I grew tired of listening to my own excuses, threw in the towel, and signed up for a gym membership. That first visit was pure anxiety—I was certain that I would fly off the treadmill or embarrass myself by not knowing how to use a machine—but flash forward six months, and I love it. It’s become a cornerstone of my routine and something I genuinely look forward to doing. Enjoying exercise is perhaps one of the biggest surprises of my life thus far. Does that sound ridiculous? Well, that should give you an idea of just how deeply ingrained that belief of mine was. The reason I called this “life-changing” is not just because I’ve gotten physically stronger, but because it’s cracked open the beliefs I’ve had about myself and my potential. Everyone knows the Wayne Gretzky quote, “You miss 100 percent of the shots you don’t take,” but when was the last time you really thought about all the shots you’re not taking? One of my favorite articles this month is Kelly Beaton’s strategy story on work-life balance (p. 54). Beyond being full of practical advice, it also addresses many limiting beliefs I’ve heard time and again from shop owners: I’m just not an early bird! I don’t have time to leave my shop and join a 20 Group. I’ll never be someone who’s hands-off in their business. I don’t need a structured schedule; I remember everything in my head. Does any of that sound familiar to you? I encourage you to not only read the article, but even more so, I encourage you to start examining those beliefs and whether they’re really true. I can tell you firsthand that they’re probably not, they’re probably wreaking more havoc than you realize, and, most importantly, that you’re completely capable of changing it. 18 fenderbender.com | April 2020
ANNA ZECK EDITORIAL DIRECTOR a z e c k @10 m i s s i o n s .c o m
BE THE AUTHORIT Y ON FORD COLLISION REPAIRS. WITH THE BADGE TO PROVE IT.
INTRODUCING THE FORD CERTIFIED COLLISION NETWORK. Display this badge and let customers know you receive information, tips and expert guidance straight from the factory. A distinction that will set your shop apart. Enroll now at Collision.Ford.com/fordcertifiedcollisionnetwork.
April 2020 | fenderbender.com 19
THERE ARE NO SUBSTITUTES.
Many imitation parts have fit problems, ranging from twisted metal and misaligned mounting holes to major gap variances. Don’t settle for imitation, give your customers the real deal.
FOR MAXIMUM QUALITY AT COMPETITIVE PRICES, CONTACT AN AUTHORIZED MITSUBISHI DEALER TODAY.
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QUICK FIX NEWS
|
IDEAS
|
PEOPLE
|
TRENDS
Catering to Customers Louisville Collision Center's new facility features a waiting area with countless amenities like a fireplace and plenty of leather furniture.
ANALYSIS VIEWPOINT LIGHT HITS SNAP SHOP
30
ME AGAN JORDAN
SN A P SHOP
April 2020 | fenderbender.com 21
QUICK FIX
ANALYSIS
How to take preventative measures in your shop in light of the coronavirus pandemic B Y K E L LY B E AT O N
22 fenderbender.com | April 2020
March, following President Donald Trump’s declaration of a national emergency in the wake of the coronavirus outbreak. All of a sudden, he recalled the last national recession. “To me, it feels like 2008, when the economy crashed,” says Thornton, who for 21 years has owned Park Royal Body Works in Boise, Idaho. “We survived that … but barely.”
PIX ABAY
PLANNING AND RESPONDING TO COVID-19
Matt Thornton was taken aback in mid-
TIPS FOR PREVENTING EXPOSURE For shop owners that are in the dark about what to do, the Occupational Safety and Health Administration’s (OSHA) coronavirus webpage (bit.ly/OSHAcoronavirusinfo) provides guidance to prevent exposure. Here is what the organization recommends for all workers: • Frequently wash your hands with soap and water for at least 20 seconds. When soap and running water are unavailable, use an alcohol-based hand rub with at least 60 percent alcohol. Always wash hands that are visibly soiled. • Avoid touching your eyes, nose, or mouth with unwashed hands. • Avoid close contact with people who are sick.
In uncertain times like this, body shop owners need specific procedures in place in order to ease the minds of customers and employees.
Reassuring Customers
Yes, uncertain times are ahead for business owners throughout the nation, not to mention collision repair shop operators. “We had a meeting and just talked about what the government’s doing, and what we’re going to do a little different,” says Thornton, who oversees a nearly $3-mllion-per-year shop. “It’s gonna be a bumpy ride for a month or two.” Many close to the situation agree:
Thornton is one shop owner that’s taking a proactive approach. His initial steps in the wake of of the coronavirus outbreak were to utilize the following measures at his business: • Post signs on employee bathrooms, instructing them to wash their hands thoroughly and frequently. • Purchase additional cleaning supplies such as PineSole and ample hand sanitizer. • Make a Facebook post assuring the public that his shop remains open and is taking extra steps to clean vehicles. • Have employees wipe down any part of the vehicle they touched during the repair process, be it a door handle, steering wheel, or seat adjuster.
“We also have our CSR in the front office cleaning things throughout the day,” Thornton notes. “She goes around and wipes down all the doorknobs, coffeemaker, microwave, anything that anyone touches during the day.”
Reassuring Employees
Bernard Swiecki, assistant director for business groups at the Center for Automotive Research, says that shop owners need to thoroughly inform and update staff members about what their plan is during a virtual national panic. In an environment where people are all touching the same equipment and in close proximity, there needs to be an open discussion about what’s happening, he says. Thornton has reacted to the Coronavirus uncertainty by ensuring his 13 employees that he’ll provide them with a steady paycheck for as long as he possibly can. “We might cut back,” the Idaho shop owner acknowledges. “The work has been slow because we had such a mild winter, anyway. So, we may cut some hours back and split the staff up and work partial schedules if it gets really bad. “If we get really slow-going workwise, then we’ll just take turns taking days off, so everybody gets at least a partial paycheck.”
Industry Impact
Beyond being concerned for others’ health, many business owners are finding themselves in a panic about what the outcome of the coronavirus outbreak will mean. The parts supply, especially, is of concern to some. Swiecki says that he’s heard some companies are tripling the time that they expect something to arrive. And, because of this, many are stocking extra inventory. Because the effects and impacts of the coronavirus on companies have been widely publicized, unlike other events (like the 2011 tsunami in Japan, Swiecki says), customers are largely understanding. For his part, Thornton says he’ll call upon the lessons learned in the wake of the 2008 recession when this current national panic nears its conclusion. “The lesson is to manage your money a little more conservatively,” says the 34-year industry veteran. April 2020 | fenderbender.com 23
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24 fenderbender.com | April 2020
QUICK FIX
VIEWPOINT
SELLING AN AUTOMOTIVE CAREER TO STUDENTS Many U.S. students are as motivated as ever to join the automotive industry BY MELISSA STEINKEN
Statista.com, a platform that consolidates various statistical data, indicates that, by 2028, slightly more than 20 million students will be enrolled in either a public or private college program. And it’s no secret that, currently, collision repair shops are attempting to tap into that vast pool of students and educate them on the merits of attending a trade school or entering a trade industry. A recent survey conducted by the Collision Industry Conference’s Talent Pool Committee found that the majority of students these days Dave Luehr don’t plan to attend a 4-year college. The survey pooled 275 high Owner school, college and technical school students between the ages of 15Elite Body Shop 45 who attended a CREF career fair during the 2018–19 school year. Solutions LLC High school students who responded to that survey largely illustrated a trend that goes against the belief that students are predominantly opting for four-year colleges instead of technical or community colleges. The survey found that the top reason for choosing their current school program was a love of working on cars, followed by “opportunities for career advancement after employment” (See Sidebar: Top Factors in Choosing Employers). However, the number of job openings and both entry-level and top technician pay were toward the bottom of the list. In light of the trend, FenderBender sought insight and suggestions from Dave Luehr, owner of Elite Body Shop Solutions LLC and chair of the Talent Pool, Recruitment and Development Tool committee for the Collision Industry Conference (CIC).
COURTESY DAVE LUEHR, GET T Y IMAGES
How can shop owners get in front of these students and bridge the information gap?
This is really what we’re trying to do with the Talent Pool committee. We’re trying to create awareness in the industry and have shops take personal responsibility to realize we need to make some fundamental changes to build our repair businesses. Businesses need to attract these people that are potentially coming into our industry. The biggest reason people are attracted to the industry is because they like working on cars. My feeling is that people are going to want to work on cars but also make a decent living. Some items not reflected in the survey are why people are attracted to jobs. They want to make money, they want to work on cars, but they also want to go to work for some place that has a bit of a career path. One of the things that’s a little surprising from the survey results is that people in
the industry think these young adults expect to come out and make $100,000 right off the bat, but that’s just not the case. The majority are expecting to make $50,000 or less, which is still a significant amount of money. Another thing that’s way up there is work-life balance. How can shop owners offer a work-life balance for their employees?
Money is not the key driver or motivator for young people. Money is a motivator to allow them to have a good work-life balance. Some young people are more motivated by money than others, however, I believe that, for most people, money is a means to experiencing a more meaningful life often outside of work. One of the things the talent pool committee is working on right now is a research paper. It’s going to spell out exactly what shops need to do to take advantage of
TOP FACTORS IN CHOOSING EMPLOYERS 1. Wages 2. Work-life balance 3. Potential for advancement 4. Insurance benefits 5. A retirement savings plan 6. Tuition reimbursement
these programs. It’s going to talk about apprenticeship programs, talk about the importance of setting up a clear career path. When a young person comes into the industry, they may be OK not making $50,000 per year, but we as shop owners need to let them know the specific steps it will take to get them to $50,000 or higher. We’re creating a white paper as a committee to help shops create an apprenticeship program in their shop and mentor young people. What are your thoughts on the amount of students interested in entering the industry, according to the survey?
The millennial generation has now eclipsed baby boomers as the largest generation on the planet. It is time that we understand these young people are our only option for an effective workforce. Whether shops like it or not, we have massive amounts of young people coming into our business. What we’re discovering is that there’s not a talent shortage. That’s not the problem. The problem is having an attractive industry for these workers to come into. It’s up to us to make an attractive industry and make it available to these workers that do exist. We’re seeing there are people willing to work with their hands. Our industry is in competition with other trades and we’re not prepared or organized as an industry to get our fair share of people willing to work with their hands. There are other industries like HVAC, plumbers, even diesel mechanics. Those industries are more prepared and willing to go to where the students are and talk to them and bring them into their industry. Independent collision repairers need to start choosing to show up for events like career fairs. They’re happening and they happen more than once per year. April 2020 | fenderbender.com 25
News
QUICK FIX
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LIGHT HITS
fenderbender.com/lighthits
FORD TRUCKS RECALLED FOR HEADLIGHT CONCERNS Ford is recalling F-150 pickup trucks because the headlights are too bright and may reduce visibility for drivers. The recall involves more than 217,000 F-150s from the 2018 through 2020 model years that are equipped with optional LED headlights. When drivers turn on their lowbeam headlights manually, the headlight switch fails to also dim the truck’s daytime running lights. As a result, both are illuminated at the same time, so the lights can be too bright for other drivers, increasing the risk of a crash. This problem doesn’t occur when the switch is left in the “Auto” position.
RESEARCHERS TRICK TESLA INTO SPEEDING How do self-driving cars determine the
speed limit? In some cases, they just look at a road sign. Therein lies a potential for trickery, according to one report. A study conducted by McAfee researchers found that Tesla’s cameras could be tricked into misreading a speed limit sign. As Vox reports, the researchers stuck a bit of tape onto the middle of a “3,” which caused the Tesla Automatic Cruise Control system to read it as 85 instead of 35. What’s more is that the OEM’s control over the software prevented the researchers from finding a specific fix. “This system is completely proprietary (i.e., Black Box), we are unable to specify exactly why the order of operations is essential,” Steve Povolny, head of McAfee Advanced Threat Research, told Vox. The errors were only found in 2014 to 2016 Tesla models with an EyeQ3 camera. Limited testing in a 2020 model with an
updated camera didn’t present the same problems, according to the story.
PROGRESSIVE BUCKS TREND, BEGINS HIRING INITIATIVE Insurer Progressive intends to increase its hiring throughout 2020, according to multiple reports. The company plans to hire 8,000 new employees. A Progressive spokesman said in an email to Crain’s Cleveland Business that “typically 50 percent of external hiring figure is net additions,” so about 4,000-plus jobs will be net additions in 2020. A majority of the jobs will be in customer sales and service. Progressive’s chief human resource officer, Lori Niederst, noted in a statement that the company has “a history of promoting home-grown talent into successful leadership roles.”
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ADAPT is on the Air Check out ADAPT’s growing podcast episode list. A recent episode explores how one repair shop owner is getting involved in legislation by hosting a Congresswoman at his facility. In another two-part episode, representatives for an Oklahoma dealership network and a tech school describe how they both benefit from a public-private partnership.
DIGGING INTO DATA ADAPT, FenderBender’s sister media brand, has a series of stories all about protecting customer data, securing shops from cyber attacks and more. To get started, here is some basic information to jumpstart your research:
adaptautomotive.com/podcasts
FEDERAL TRADE COMMISSION TIPS FOR DATA PROTECTION • To protect shop inventory, the first step is to note all the devices and people who have access to sensitive information. If, for example, an estimator links his or her phone to information on a work computer, that’s worth taking note of. • The second step is to keep a lid on how much information you collect and retain. Keep a lean data operation. Only give employees access to information they absolutely need. • Electronic security is a key area where many shop owners might have blind spots. The FTC says that owners need to be fully aware of how employees use computers. Train employees on best practices for web and email use. • If a data breach does happen at your shop, you’ll need an incident plan in place. Designate a senior staff member to coordinate the response plan on the ground. And, call the authorities if necessary.
GETTY IMAGES
To access all the stories in ADAPT’s data and security series, head to adaptautomotive.com/datatips.
DECEMBER 6-8 NASHVILLE, TENN.
ADAPT Trend Report Head to the ADAPT website to sign up for the ADAPT Trend Report newsletter to have the latest news, strategies and transportation trends sent to your inbox every week. adaptautomotive.com/newsletter
Registration and hotel accommodations are now open for The ADAPT: Automotive Technology Summit. Head to adaptsummit.com to learn more about the event, who can attend and the schedule of the two-and-ahalf day event.
adaptsummit.com
April 2020 | fenderbender.com 29
QUICK FIX
SNAP SHOP
1
LOUISVILLE COLLISION CENTER
2
BY KELLY BEATON PHOTOGRAPHY BY MEAGAN JORDAN LOCATION:
Louisville, Ky. MANAGING PARTNER:
Steve Olson SIZE:
39,000 square feet STAFF:
42 (31 on shop floor; 11 in front office) AVERAGE MONTHLY CAR COUNT:
200
AVERAGE REPAIR ORDER:
$4,600
ANNUAL REVENUE:
$10 million
30 fenderbender.com | April 2020
1. EXPANSIVE FACILITY Five years ago, Steve Olson, the managing partner of Louisville Collision Center, encountered what he considered a good problem: his body shop—a BMW certified collision repair center of the year—was so busy, it required a larger facility. So, last year, Olson shifted operations to an old BMW dealership, more than doubling his body shop’s square footage, to nearly 40,000 square feet. The move to the former car dealership
has provided Louisville Collision Center’s staff with better workflow, and a paint area that increased to 12,000 square feet. Now, the body shop staff can handle additional work like alignments on-site.
2. ON-SITE TRAINING Louisville Collision Center—the only BMW, Volvo and Lexus certified shop in the state of Kentucky—and its staff occasionally lead training events for insurance adjusters, such as BMW workshops.
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3
4
Olson feels it’s imperative to lead such educational sessions due to vehicles’ rapid evolution these days. One session might explain the intricacies of carbon fiber in a 7 series BMW, for example. “We invite them for dinner, and then we have BMW employees co-lead the” training, Olson explains. “Because the technology is changing so much.”
3. PULLING FOR EMPLOYEES In an effort to keep pace with the growing
complexity of vehicle repairs, Olson is more than willing to invest in state-of-the-art equipment, such as approximately $26,000 for a dentpulling station by Flatliner. “Fifteen years ago, a lot of technicians would repair a dent with a hook, or stud welders,” Olson says. “And, because of that, you risk burning the corrosion protection. This dent-pulling station doesn’t burn the back side.”
4. CATERING TO CUSTOMERS Louisville Collision Center caters to its clients in several ways, including with air-conditioned estimating bays, a luxury lounge with a fireplace, and a coffee bar that features white leather bar stools. The new facility’s customer waiting area is 9,000 square feet. “We realize that customers come in and they’re going to be in our presence for 15-20 minutes, and we want it to feel as comfortable as possible,” says Olson. “We don’t want it to feel like a doctor’s office.”
April 2020 | fenderbender.com 31
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COLUMNS
THE BIG IDEA KEVIN RAINS
The Magic of ‘Unless’ Avoiding the blame-and-shame game
MICHAEL HOEWELER, GETTY IMAGES
Having awkward conversations is
the work of the leader. As a leader, our job is often to make people uncomfortable. And by “awkward conversations,” I don’t necessarily mean confrontational. Sometimes that is true. But, typically, bringing awareness to someone about themselves or their way of thinking is plenty awkward for the run-of-themill workday. Typically when we bring awareness to someone, we’re not sure how they will respond. Will they be angry? Will they feel defeated? That’s where it can get awkward—quick. Maybe I can explain this better with a story: This past month was not great at two of my locations. The prior month, we had record sales at all our locations and then, the following month, it’s like the bottom fell out at two of my locations. As shop leaders, we all know that there is an ebb and flow to revenue and often the factors that drive business can seem completely out of our control. On the last day of the month, I was talking to one of our production managers. “Hey, Tom, it looks like we’re not going to hit our monthly number,” I said. Awkward silence. “Tom, are you still there?” I waved my hand in front of his face. “Yeah, I’m just thinking how I want to respond,” he said. “I guess I just feel like it’s all my fault. Like maybe I’m just not doing a good enough job.”
This is precisely where many of our best leaders go: The Shame Game. The first place they look when things go wrong is themselves. This is not a bad place to begin in many ways. Taking personal responsibility is a key part of leading others. But I knew Tom was prone to taking on too much responsibility and once shame sets in, it takes him to a dark, defeated place. “Well, I know you’re putting the effort in! And the last thing I want you to do is go to a dark place right now! That won’t help anyone, especially you,” I offered. “I’m curious, what else might it be?” “Well, Jim said he heard from some parts delivery guy that it’s slow everywhere. Maybe there just wasn’t enough work out there to go around this month,” Tom said. “Or maybe it’s the big consolidators that just came to town. I heard
they got all these big contracts with the insurance companies that have been steering all the work to them. I don’t know, really. We haven’t seen much weather lately either. Usually, we get snow by this point in the year. Maybe it’s global warming’s fault.” He grinned as he said the last one. Now Tom had a full head of steam. If it wasn’t his fault, it had to be something completely out of his control, right? I let him get out all of the things that he initially thought it might be. “Tom, I’ve got good news and bad news. None of those things are really the problem. And honestly, I don’t know what the real issues are just yet. But, can we take another look at some of the things that are more in our control and see if there’s anything we can do differently? I’m hopeful we can discover it together.”
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
April 2020 | fenderbender.com 33
KEVIN RAINS
THE BIG IDEA
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The blame game doesn’t promote learning or taking action. Blaming things outside of our direct control creates a self-defeating cycle. It disempowers us. We blame the weather, the state of the industry, our competitors. And sometimes we blame ourselves, which leads to heaping shame on this already heavy pile! Anything and everything that makes us the powerless victim of the story. Victims are, by definition, powerless, unable to take action. Victims can’t get creative about solutions. They just have to “take it.” The very tools we most need when things get tough—creativity, taking action—get stripped away with the blame and shame games. But I’ve found a way out. It’s changing the game with one word: unless. My mentor Michael Hyatt taught me this at a recent training event and I use this at least weekly and sometimes daily to get me back in the game. Here’s how it works: When we hear ourselves or others going to blame or shame we simply add the word “unless” to the end of the sentence and try to think of other possible solutions. Here are a couple examples. “We can’t compete with the MSO consolidators and their massive marketing budgets and insurance contracts unless... we use our local and family-owned status as a marketing advantage.” “We haven’t had any weather to drive business this year. We can’t get enough volume to hit our budget unless… we had a fleet account that would create a more predictable workflow year-round.” “I guess I’ll just never be good enough to be a production manager! Maybe I should just find another job that better suits me… unless… I took some training classes in production management or found a mentor from another location who has gone from newbie to mastery of this role.” Sometimes when we feel defeated and like there’s nothing we can do to overcome our current situation all we need is one, simple, magic word to unlock the possibilities: unless. What current challenge are you facing? How might “unless” help you discover a new opportunity lurking in the shadows of blame or shame?
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The keys to getting your staff to communicate in a manner that fuels efficiency B Y K E L LY B E AT O N
In recent years, Aaron Glaser has undergone an evolution. “You beat your head against the wall for so long, you realize you’re doing some things wrong,” says Glaser, the owner of four Glaser’s Collision Centers in Kentucky. A second generation shop owner, Glaser learned to run a shop through osmosis, almost automatically. For years, he thought leading by example would be enough to inspire his staff. So, he arrived at work each day and promptly placed his nose to the grindstone. Yet, Glaser eventually learned something was missing. There was a disconnect between what he envisioned with regard to shop floor workflow and the reality he witnessed. It’s an issue all too common at body shops: communication starts lacking as shop leaders fail to get every employee on the same page. In recent years, Glaser, who oversees 53 staff members, has learned the value of frequent communication on a shop floor. “I realized you need to slow down, ask employees how they’re doing, and have a real conversation,” says the shop owner, whose business currently boasts a 98 percent CSI score. “When you have those connections and relationships—and a better understanding of each other—it makes the whole company run better.” Here’s a look at the keys to communicating in a manner that fuels efficiency on a shop floor— with tips from shop owners in multiple corners of the country, as well as longtime Axalta shop consultant Robert Rick.
36 fenderbender.com | April 2020
PEXELS
April 2020 | fenderbender.com 37
FE ATURE
TALK TO ME
on-site, and to have the parts’ availability noted on a shop production board, so customers can be provided with a fairly accurate assessment of a delivery date. Torres’ staff sets up parts carts in the blueprint room, in a manner in which parts that will need to be replaced are set on a cart’s bottom shelf, parts in need of repair are placed on the middle shelf, and so forth. “Once the vehicle’s in the blueprint room and it’s completely disassembled and the blueprinter writes the initial repair order, we go over it together,” Torres says. “That blueprinting process was the best process we’ve adapted here—it just (creates) close communication.”
THE ESTIMATE
Rodrigo Torres’ staff says a lot by saying very little. Torres, now in his 13th year owning T&R Collision Center in Kingman, Ariz., has established processes that heavily utilize non-verbal communication. Autowriter markers play a large role, but so does visual documentation in what Torres calls his shop’s “blueprint room.” Refined procedures have helped make the estimating process streamlined at the Arizona facility, which produces an annual revenue of $1.5 million. “In most cases we don’t even need a repair order,” Torres notes, “because it’s all written on the vehicle.” The primary elements of T&R Collision Center’s estimating process include: • estimators use Autowriter markers to note, in green, any areas on a vehicle that require repair • a CSR drives the vehicle to the wash bay, where a detailer gives it a 10-minute wash • the vehicle then moves on to the blueprint room And that 1,600-square-foot blueprint room serves as the key cog in an estimating process that has helped Torres’ 10-person staff find success. In the blueprint room, located next to the shop’s office, T&R Collision members build upon the initial estimate that was produced at vehicle drop-off. Then, they perform a 100-percent disassembly, and write in detail, with a marker on the vehicle, the type of repair work that lies ahead for technicians, as well as the projected labor time. If, for example, a repair part is discovered, an employee will simply write REPAIR in marker. It’s a simple, repeatable process that communicates a lot without requiring lengthy conversations. “Absolutely everything gets documented in the blueprint room, like if it needs frame work, or suspension,” Torres explains. “Then it goes on to the repair shop.” Of course, it helps to have parts pre-ordered and 38 fenderbender.com | April 2020
TRACKING REPAIR PROGRESS
C O N S U LTA N T ' S INSIGHT “Many shops still bring in 70 percent of their jobs on Monday morning. But better communication throughout the shop would be, ‘How do we spread this out so there’s five jobs coming in each day of the week? Well, we can have scheduling boards, it can be color-coordinated, and some of the management systems have a scheduling mod built into them.” —Robert Rick, strategic account manager, Axalta
At Glaser’s Collision Centers, the shop floor kicks into gear at 8 a.m. sharp. “Not 7:59, not 8:02—8 o’clock on the nose,” owner Aaron Glaser notes. Yes, Aaron Glaser values precision. That’s why most of his employees begin their days by talking about what appears on shop production boards, analyzing each vehicle scheduled to roll out of the shop over the next 48 hours (See Sidebar: Getting Technical). “We also try to give employees some other kind of information, like a cycle time report,” Glaser explains. “We talk about our goals. “For a long time I didn’t share numbers; I just didn’t think (employees) cared. Now we share our DRP scorecards with them, and it’s pretty cool how much ownership they took of it.” And those employee meetings aren’t exclusive to technicians; Glaser makes sure that his estimators, parts employees, and detailers attend, too, so everyone’s on the same page (he prefers to leave CSRs at the front of the shop during such meetings, to answer phones). Glaser tries hard to clarify his expectations for all repair work. That way, each employee understands “the big picture,” he says. If a repair process
MEAGAN JORDAN
Listen Up
At his shops in Kentucky, owner Aaron Glaser works hard to clarify expectations for each repair, so employees are all on the same page.
April 2020 | fenderbender.com 39
FE ATURE
TALK TO ME
Huddle Up
At Glaser’s Collision Centers, employees and administrators meet frequently to tweak procedures as they deem necessary.
40 fenderbender.com | April 2020
C O N S U LTA N T ' S INSIGHT
GETTING TECHNICAL
“Visual communication is very effective in the collision repair industry. For example, in front of a shop’s paint booth, that’s where 10 to 12 hours should be staged and, if it’s not, then visually employees can all tell that there’s a gap in production.”
DANA E ARHART, A 34 -YE AR , I - CAR PL ATINUM TECHNICIAN AT ERNIE’S AUTO BODY IN HAY WARD, WIS., E XPL AINS THE FORMS OF COMMUNICATION THAT TECHNICIANS TEND TO APPRECIATE:
—Robert Rick, strategic account manager, Axalta
• Detailed production boards (noting customer names, vehicle’s arrival date, employees repairing each vehicle, etc.)
• Two-way communication • Repair meetings • Multiple daily meetings (twice, ideally) • Interdepartmental conversations
COURTESY DANA EARHART, MEAGAN JORDAN
is ever delayed, the instance is documented on a “process improvement form” and the staff reviews the issue at week’s end. At Glaser’s Kentucky shops, production boards are dedicated to repair work defined as paint, body, detail, office work, or total losses. The totalloss boards, for example, clearly explain if a vehicle was towable, if it has been released, and if the shop staff has its keys. In total, the dry-erase boards note each vehicle set to be delivered from the Kentucky shops within the next two days. And, next to those dry-erase boards, each of the four Glaser’s facilities has a roughly 60-inch monitor, mainly used to display updated CCC KPI dashboards. That means that, anytime an employee walks by those boards, they can quickly assess if the shop is hitting its goals. Clear, frequent communication, Glaser explains, helps employees strive to complete repairs on schedule. And, it helps his staff work as one. “We tell (employees), ‘We’re a team,’” the shop owner notes. “The enemy’s not inside these walls. If there’s an issue, let’s talk about it. You know, if you’re getting mad because the body men aren’t doing something, well, let’s ask them why; maybe they didn’t understand expectations.”
Stick to the Script
Open lines of dialogue help shop floor employees work in unison at Aurora Collision Center in California, aided by the use of walk-talkies.
COURTESY AURORA COLLISION CENTER
PAINTING PROCESSES
Accountability, more than anything, has helped Shaun Arroyo’s Stockton, Calif., shop produce $1 million in annual revenue, despite the fact it was down to just one painter recently. Arroyo, whose eight-employee shop boasts a 4.9-star rating on carwise.com, makes sure staff members are handed production schedules every day, and that painters are included in repair planning, and kept updated if parts have yet to arrive from the dealer. And, if vehicles have to be primed at Aurora Collision Center, employees note on a white board the associated RO number, along with the car and primer. That largely ensures that the paint department at Arroyo’s facility is in sync with the rest of the shop. “We have checks and balances so nobody can say they didn’t know” something, the longtime shop owner says. To facilitate a solid stream of communication between Aurora Collision Center’s employees, Arroyo utilizes a CCC ONE shop management system. He invested $4,500 to purchase 10 used Motorola walkie-talkies for employees to use throughout his 14,000-square-foot facility (“If there’s a problem with a color on a bumper in the paint shop, technicians
C O N S U LTA N T ' S INSIGHT “Body technicians should be able to clearly understand what their requirements are before delivering their product to the paint department. Production managers should communicate with technicians when they need more work coming downstream, like ‘Hey, what can we do as a team to prepare some work to get ready to be staged?’” —Robert Rick, strategic account manager, Axalta
will call the front office and say, ‘You need to come look at this,” Arroyo says with regard to walkie-talkie use. That way, “They’re not walking back and forth between departments.”). And, as vehicles shift from the body area to the paint department and move toward their delivery date in his northern California facility, Arroyo expects a quality-control check to be performed and, if necessary, discussed among employees. “The paint shop knows that, when the car comes over from body, they need to inspect it,” says Arroyo, whose business typically employs two or three painters. “Are there any imperfections that need to be handled? If so, then they tell the technician that brought it over, ‘Hey, this needs to be fixed before I can prime.’ “The paint shop knows that, if they prime it, they own it.” Arroyo always welcomes feedback from employees like his painter, too, in an effort to shore up any processes that fall short of his high standards. “It’s always good to check in and say ‘Okay, we fell short here; how can we improve this? What did you see out there?’” the shop owner says. Consistent, open lines of dialogue, Arroyo notes, typically help a shop’s workflow roll along smoothly. April 2020 | fenderbender.com 41
FE ATURE
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Moving on Up
John Magowan prides himself on attention to detail. As a result, at the Wisconsin shop owner’s business, Ernie’s Auto Body, every procedure is documented throughout the repair process. And, every member of the shop floor team at the Hayward, Wis., facility is part of the huddle, as repair work is planned. That includes his detailer, who’s often coached by veteran staff members. “Our entire staff, especially on the shop floor, is a team,” says Magowan, who has worked in collision repair for over 30 years and serves as the vice president of Key Choice Collision Centers, a group of shops that does group purchasing and training. Before detailers are hired in Hayward, they’re interviewed in a group setting. Then, Magowan discusses with the group whether or not the prospective detailer looks like a good fit with their staff, as well as if they appear to have an exemplary work ethic. Those group discussions have worked well; the last five detailers hired at the Wisconsin shop have eventually ascended into long term roles there. “With us being in a team atmosphere here, all of the technicians are motivated to bring the lower-level (employees) along,” explains Magowan, who puts detailers in charge of the intake of vehicles at Ernie’s Auto Body. “If we can get a detailer involved in the repair process, and make them as efficient as possible, it benefits the entire repair as far as the movement throughout the process.” Magowan urges the detailer at his $2.6-million-per-year shop to have their eyes on the repair process as vehicles move throughout the facility. That way, the detailer typically has a good feel for when a car is going to require their attention. And, during the Wisconsin shop’s two, daily production meetings, the detailer is also kept abreast of when they’ll likely need to apply the finishing touches to vehicles prior to delivery. Detailers “also get involved in the reassembly process if they’ve got time available,” Magowan notes, “so they know that a car’s going to be coming to them.” 42 fenderbender.com | April 2020
C O N S U LTA N T ' S INSIGHT “If I hire a detailer, I’m going to explain to them a career path, and I’m going to start developing them on tasks in other areas of the shop, like parts receiving and mirror matching. That way, I’m showing them a career path, versus indicating that they might be stuck washing cars the rest of their life.” —Robert Rick, strategic account manager, Axalta
During Ernie’s Auto Body’s 15-minute production meetings, everybody, including detailers, “lays hands on a car,” says Magowan, whose shop boasts a 95-percent CSI score. “Typically, that’s been a big win for us. “The last five people that have held that position have moved (up) within the company,” he adds of detailers, “to become employees that can embrace change, become part of a learning environment, and have a strong participation in our mission for constant improvement.” Above all else, transparent communication helps shop floor employees work as one. Glaser, for one, has certainly seen evidence of that at his Kentucky facilities. Production meetings, dry-erase boards, and consistent postings of KPI dashboards have his staff as motivated as ever. For instance, these days, performance goals are a constant source of conversation at Glaser’s Collision Centers. Employees pay close attention to their sales figures and cycle time in relation to their market. “It’s really pretty cool to watch them strive to meet the (shops’) goals,” Glaser says of his employees. “Over time, mainly through communication, we’ve been able to build a culture where people are here for more than just a paycheck.”
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PROFILE
44 fenderbender.com | April 2020
How to build a solid family-oriented shop culture
BY COURTNEY WELU PHOTOGRAPHY BY JASON WINKELER
Time Tested
Don's Auto Body's third-generation owner, Adam Tritz, preaches the value of offering clients direction, trust and, above all else, empathy.
April 2020 | fenderbender.com 45
PROFILE
FAMILY TIES
“One of the things that I’m most proud of is that we have a third-generation family business,” says Adam Tritz, the owner of Don’s Body Shop in St. Charles, Mo. “I’m extremely honored and proud to carry that on, and to see what happens in the future.” Don’s Body Shop was founded by Tritz’s grandfather in 1969. Tritz took over from his father, David, as the shop’s owner in January 2019. The younger Tritz worked his way through different departments, starting with detail and culminating in his recent ascent to the owner’s role. “Since I was a kid, I’ve seen the shop being added onto or remodeled two or three different times, and each time, as soon as we do it, it’s time to do something else. We’ve grown from the one building my grandfather purchased in 1969 to four buildings that we operate out of right now,” Tritz says. “The amount of change and growth has been tremendous over the years. I’m privileged to be a part of it.” Today, Don’s Body Shop has an annual revenue of $2.4 million, with a little over 4,000 square feet of production space. There are 10 full-time employees other than Tritz and his father, with a 1-to-1 ratio of admin staff to techs. Tritz says the key to his shop’s success has been the family-oriented culture that leads to unrivaled customer service. He also feels that, one thing that differentiates his business from the competition is a personal touch that treats everyone—customers and employees alike—like family. The Tritz family has taken careful steps to foster such a close-knit shop culture.
Laying the Groundwork
When it comes to creating a shop culture, it’s important to have the right people in place. Hiring new people should be a joint effort with the owner and the existing team, Tritz says. It’s necessary for the team to be in on most decisions. They were put in their role for a reason, Tritz says, and he wants to let his staff help the organization become better. Current employees are the people who will be affected by the performance of the new team members, so it’s essential that they have a say in the process. “Our last few team members have been added based on a recommendation from one of our current employees,” Tritz notes. During the interview process, Tritz schedules candidates to show up 10 minutes before the appointment to sit in the waiting room. That way the office staff can interact with them in a casual manner, and 46 fenderbender.com | April 2020
DON’S BODY SHOP OWNER:
ADAM TRITZ LOCATION:
ST. CHARLES, MO. SIZE:
4,000 SQUARE FEET STAFF:
10
AVERAGE MONTHLY CAR COUNT:
60
ANNUAL REVENUE:
$2.4 MILLION
get a better read without the pressure of sitting across the table from a boss. “It all comes back to hire for attitude, and train for skill,” Tritz says. “How will this [hire] affect our culture? Will this maintain our level of culture that we’ve created?” Tritz recalls a recent Friday afternoon at the end of a pay period when some employees were still trying to meet their bonus. Six staff members who had already met their bonuses, yet they worked together to make sure two others could reach that threshold, too. “It was the collective effort of the team to reward individuals,” Tritz says. “That’s the culture we preach here, and it’s working.”
Making Customers Feel at Home
“When someone comes in, we try to treat them as if they were someone’s mother,” Tritz says. “You treat them the same way you would treat your own mother, your wife, your daughter.”
If your shop has a family feel to it, that feeling should spread to your customers, as well. Tritz considers customer service to be one of his business’ pillars. Tritz finds that, most of the time, customers coming into a collision repair shop don’t know what to do, and they need advice on how to proceed. There are three principles that Tritz follows with his customers. “Trust, empathy, direction,” Tritz explains. “If you supply those three things to clients, that’s huge. And that’s something our office, our company, has been taught throughout the years of ongoing training.” Here’s some advice on how to accomplish that, according to Tritz: • Direction: Listen to the customer to understand what they’re looking for. • Empathy: From your initial contact with a client—phone call, email, or in person— you must make it a positive experience.
Pointing the Way
Don's Body Shop in Missouri benefits from a staff that includes as many administrative employees as there are technicians on the shop floor.
• Trust: Trust is established with every interaction. If you can take vehicle repair, which people perceive as a negative experience, and make it positive, you can gain a client for life. Tritz also emphasizes the importance of being community-oriented. Don’s Auto Body sponsors local youth baseball teams, softball teams, and golf teams, along with being a part of the Recycled Rides program, for example. That helps the community feel more connected with the shop.
Drawing Lines and Learning Lessons
Creating a family culture is important—but when you’re in a family business, you have to get along with your actual family, too. Tritz is grateful for the time he’s gotten to spend with his father, and the guidance that his father still provides.
“One of the biggest advantages of a family business for me was being able to work for my father every day for close to 20 years,” Tritz says. “Through fights, agreements, conversations—whether they were fun conversations or heated, it was always good to have that daily connection.” Separating business from family can be difficult. The key to working with family, according to Tritz, is knowing whether you’re talking to your dad or talking to your boss. It’s all about the specific situation. “A point to consider is which conversations to have and where to have them,” Tritz says. “I would never start a deep conversation or critical discussion around the dinner table; that would be for the office.” At work, Tritz says that he tries his best to live up to the example his father set for him. “I’m taking what he’s taught me, and trying to apply those principles on a daily basis,” Tritz says.
David Tritz hasn’t departed Don’s Auto Body entirely. He comes in a few times per week, handles the insurance-agent marketing, and is a consultant to his son. “I have a good working relationship with my father,” Tritz says. “It took me about five years to learn the difference between a father and a boss. Once I understood that I was second in the pecking order, things were a lot easier for me.” Tritz says that whether his own children plan to join the business or if they sell in the future, he’s proud that their company is moving forward. Don’s Auto Body reached its 50th anniversary this year, and Tritz looks forward to whatever joys and challenges come next. “It can be challenging, but also very rewarding,” Tritz says about the importance of the family business. “How many people can say they got to work with their dad for 20 years on a regular basis? I feel fortunate for that.” April 2020 | fenderbender.com 47
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STR ATEGY
IDEA SHOP
6 Steps to Auditing ROs
GETTY IMAGES
Maximize gross profit by quality checking repair orders
At times, it seems as if Zoe Rains-Hoffa is her father’s shadow. She started in the body shop when she was 15 years old, attempting to learn a trade. She didn't want to do what a typical 15-year-old would do. Babysitting? No. Working retail? Definitely, no. For the past five years, Rains-Hoffa has been following in the footsteps of her father, Kevin Rains, and learning the family business. In fact, in the past five years she's become the owner in-training. “Right now, I want to learn everything my dad does, and it's my goal to eventually be in the place where he is now—leading the business,” Rains-Hoffa says. At the young age of 21, Rains-Hoffa has taken over some of the shop processes, including how to audit the shop’s repair orders. That means her day-to-day tasks include looking over the shop’s KPIs and analyzing how the numbers all fit together. While her father created the process of auditing ROs, Rains-Hoffa has largely perfected the procedure. The process was created so the owners could become familiarized with the CCC management system and to understand their gross profit better. Since starting the process, the shop has added 2 percent to its gross profit. Rains-Hoffa outlines the steps to take to audit not just one RO, but every file possible. AS TOLD TO MELISSA STEINKEN
Step 1: Read through all files.
Open your management system. Look at the reports of the vehicles that were delivered. Do this for yesterday's vehicles. Then, pull up a report of the vehicle and go through every single tab in that vehicle’s file, and do this from the right to the left. For our vehicles, there are 17 tabs in a file, which is pretty expensive but I go through every single one, even the notes section.
Step 2: Create an email thread.
Since I am doing this for more than one location at the same time, when I’m looking at the files I make an email thread. The email thread is between myself and the other location managers. As I go through the files I make a note in the emails of April 2020 | fenderbender.com 51
STR ATEGY
IDEA SHOP
what I noticed missing or any patterns that have emerged. This way, I can easily send out the email after I’m done and my managers can be updated on the audit.
Step 3: Clearly label your records.
I title every email with the same subject line. I include the label of “audit”, the shop's name, and the date of the repair order that
I'm looking at. This way I can always reference back to the correct email and repair order if I need to look it up again.
Step 4: Ask yourself if the customer was satisfied.
As I go through each file I make sure to remember the customer. I ask myself, “was the customer happy with the repair
order?” If there’s an issue with a repair order, and it happens more than once, I have the owner sit down with the manager to go over the issue.
Step 5: Look for emerging patterns.
I typically look for patterns that will negatively impact our gross profit (See Sidebar: RO Audit Checklist). For example, I look at the overall gross profit of the job and look into if we got discounts, and the labor performed by the technicians. If we’re discounted under 25 percent, then I usually question why that is and why we didn't get a higher discount from a vendor.
Step 6: Make sure you’re getting paid.
Insurance paperwork, the jobs that are getting done, and all confirmations are in the file. You want to make sure that you have all the correct paperwork and signatures for each step of the repair, so that the collision repair facility gets paid.
RO AUDIT CHECKLIST HERE ARE THE TOP ITEMS TO CHECK OFF IN YOUR AUDIT
What is WIN?
Event Logs Are events correct for the DRP?
Repair Plan Correct in/out date
THE network that drives the future of collision repair by attracting, developing and advancing women through education and connections.
• Local/Regional
Networking Events
• Annual Education Conference
• Educational Webinars • Mentoring
Receipts Was everything collected at delivery?
• Scholarship Program • School Outreach
Are you waiting on money? From where? Any write-offs/discounts offered
Program
• Most Influential Women (MIW) Award
Underpaid/waste if more ordered/received than on RO
Opportunities
SOPs for core charges and sublet followed?
Labor RO > Assigned = paid. If more is assigned than on RO, why?
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Parts Does RO match what is ordered and received?
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April 2020 | fenderbender.com 53
STR ATEGY
LEADERSHIP
Budgeting for Family Time
The steps that help shop owners thrive both in their business and at home
Matt Thornton had been churning on overdrive for years. As
a body shop owner, he felt immense responsibility for his business, and, as a result, he simply couldn’t pull himself away from unfinished tasks at the end of each day. His high blood pressure hinted at Thornton’s unease. Finally, five years ago, a doctor’s orders helped him see the light. “He advised me that I need to find different ways to deal with stress, or I’m possibly going to have a heart attack or stroke,” recalls Thornton, the owner of Park Royal Body Works, a Boise, Idaho, shop that produces $3 million in annual revenue. That episode helped Thornton realize just how important 54 fenderbender.com | April 2020
it is for a business leader to strive to lead a full, well-rounded life, or else they can become consumed by stress. In short, he learned to “take the vacation you’ve thought about doing but keep putting off because you’re too busy with your shop.” Tyler Makeig, too, has had to re-evaluate his priorities recently; the shop operations manager at Showtime Collision in Running Springs, Calif., Makeig has 1-year-old twins he needs to help care for. Now, he wakes up at 4 a.m. in an effort to get home around 5:30 p.m. and help care for his young son and daughter. In the sections that follow, leaders like Thornton and Makeig detail the lessons they’ve learned when it comes to achieving a solid work/life balance.
GETTY IMAGES
B Y K E L LY B E AT O N
Seek consultation.
BALANCING ACT Years ago, Peter Barron Stark arrived at his job owning a printing company and was hit with an epiphany. “I hate my job,” he declared. Stark eventually became an accomplished business leadership expert and author who helps consult with leaders in industries like collision repair. Here are his top tips for achieving work/life balance: 1. Take a look at all the tasks you do daily, and delegate repeatable, daily chores. 2. Stay organized by compiling a daily to-do list. 3. Focus on accomplishing the most important tasks, first and foremost, each day. 4. Make all return phone calls back to back, and check emails in batches. 5. Focus on your vision for a fulfilling life, and remind yourself of it often.
Two keys to helping Thornton achieve better work/life balance came when he sought consultation from BASF and also a team-building coach. That guidance left Park Royal Body Works with a streamlined production process, improved shop floor communication, and a CSI of slightly more than 96 percent. The team-building coach particularly made an impact via quarterly visits to the Idaho shop. That helped Thornton and his staff create lean-style processes that aided efficiency. Before long, the shop owner went from working 12 hours per day to roughly 7. “That helped eliminate (some) stress,” Thornton notes.
Stick to a structured schedule.
If you want to be viewed as a reliable loved one to those at home, you have to leave work behind at a consistent time. Makeig, now a father to two infants, makes an effort to end most work days by 5:30 p.m. That allows him to set aside ample time to address chores like changing diapers. “It’s just a constant thing you have to manage,” says Makeig, who oversees a $2.9 million–per-year shop, of scheduling. Further advice along those lines: leadership expert and author Peter Barron Stark (see sidebar) suggests shop operators block off time in their schedule well before family events—say, 60–90 minutes—so they’re not left scrambling to finish a work-related task while running behind for an event like a child’s Little League baseball game.
Cross-train employees.
Become an early bird.
Makeig rises before dawn each day, but it’s not because he constantly obsesses about work. Rather, he wakes up early to go to the gym for 45 minutes before opening the shop. In 2020, a life coach would call that “self care.” Makeig, however, says the early wakeup calls simply help him clear his head before the day’s work begins. “It might seem crazy, getting up at 4 a.m. and working out before you go to work,” the operations manager admits. “But incorporating that into my (schedule) helps me set the day up. It just sets a good tone for me.”
If you want the opportunity to step away from your shop more regularly, you need to be confident that your staff can tackle anything thrown its way. And that becomes much more likely when each staff member is trained in a role beyond their typical forte. At his Idaho shop, which has 13 employees, Thornton has found he can cross-train most staff members in 90 days or less simply by having them help and observe co-workers when they’re not busy. He might have an estimator jump in and help a detailer, for example, if there’s a sudden surge of cars that need to be delivered. “The smaller the business is, the more important cross-training becomes,” Thornton says, “because shop owners can’t be everywhere at every time.”
Don’t hesitate to delegate.
It’s tough to be an attentive parent or spouse if you never lean on your employees at work. In that spirit, Makeig makes sure to use help from his parents, when it’s offered, to care for his young children. And, if he ever has to ask one of his shop’s 16 employees for a favor, Makeig makes an effort to return the good deed. “You need to have the right people in place, so that the ship stays afloat,” adds the operations manager, whose workplace boasts a 98 percent CSI score. Thornton eased his workload by first making a list of his daily tasks, then eventually passing along a few small responsibilities to his employees. “Within a few months, you’ll find that your list becomes 8–10 things you need to do, versus 20,” he says.
Take vacations.
Many shop operators fear taking prolonged time away from their shop, concerned that chaos will ensue. That, Makeig notes, is illogical thinking. After all, in order to take care of business at your shop, you need to be energized. And nothing helps a shop operator refuel, get centered, and refocus quite like a vacation. “You just have to take your vacations at times when you know it’s going to be a bit slower,” Makeig says. Meanwhile, Stark suggests buying airline tickets well in advance of vacations, to provide yourself with the motivation to make the trip a reality.
Learn to let it go.
Early in his career, Thornton simply couldn’t walk away from a task until every ‘i’ was dotted and every ‘t’ was crossed— even if that meant staying late at his shop. Whether it was returning parts, receiving parts, or closing a file out, it made the shop owner anxious to leave a task incomplete. But now, the 30-year veteran of the collision repair industry has learned to let it go. He simply takes notes throughout the day to ensure that he makes sure to return to uncompleted tasks throughout his work week. “It’s not easy, especially when you’re a bit of a control freak—and most shop owners are type-A personalities that are total control freaks,” Thornton says with a laugh. “And I’m one of them—but I’m rehabilitating myself.” April 2020 | fenderbender.com 55
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COLUMNS
PROCESS DRIVEN R YA N C R O P P E R
Creating Great Job Ads
Examining the ideal approach to writing a job listing At our company, as we start this new
decade, we’re spending a lot of time analyzing what’s important. Ensuring that we have an ideal hiring process ranks toward the top of that list. And, when it comes to creating job ads specifically, I think shop operators need to stay attuned with the age groups and the demographics that they’re, more or less, targeting. While I wouldn’t say my company has job ads mastered per se, I do know a few proven tactics. Consider taking these steps the next time you’re in need of a new technician, CSR, or estimator:
FUE VANG, GETTY IMAGES
Get staff feedback.
Depending on the demographics I’m likely going to be dealing with for applicants of a certain position, I involve staff members that are in that age group. We also have our employees put the job listing on their own social media pages like on Facebook. Because, if the job ad is simply posted on our company Facebook page, it doesn’t necessarily go to a bunch of people that are currently looking for jobs. But, by having employees put the job post on their personal social media pages, they can drum up interest to a relevant audience. And that makes the pre-screening process easy, because my employees think, “Ok, I’ve known this person for 13 years, and I’d vouch for them.” That familiarity can narrow things down for us quicker than the process of doing phone interviews and combing through countless resumes.
Consider your market.
The platforms for posting a job ad are constantly evolving. So, which job site to choose to list an opening takes careful consideration. I ask our young employees the job sites they look at these days, for starters. But you also need to consider the region your shop is in. I know, for us, posting job openings on Craigslist works well, but, from what I’ve heard from industry colleagues, that doesn’t work in many markets. I’ve found job sites like Indeed and Glassdoor to be helpful these days. The job posting platform that you should use depends on the position you’re hiring for, too; you wouldn’t necessarily want to use the same job site if you’re looking for an entry-level detailer as you would if you’re seeking an experienced technician.
Accentuate Your Uniqueness.
When you sit down to write a job ad, you need to figure out what you do that
differentiates your business from competitors. In our market, that could mean offering 401(k) and health insurance, for example. You need to figure out what you do differently so that, if job seekers are straight out of trade school and they’re shopping for a job, they’re very clear that this shop offers this type of compensation package, and the other shops I’m considering do not. In order to discover your shop’s unique elements, you need to do a lot of soul-searching, and get creative. In a lot of small markets with body shops, if they’re a shop that offers benefits in general, that could be a selling point. Or, a creative schedule, like having employees work four 10-hour shifts per week, could also set your business apart from the crowd. Writing a job ad can be about as fun as filling out your tax return. But, if you carefully utilize the aforementioned steps, the process can pay dividends down the line.
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
April 2020 | fenderbender.com 57
STR ATEGY
CASE STUDY
CONVINCING CUSTOMERS TO STAY Committing to making the customer feel at ease is the key to winning their estimate
GETTY IMAGES
BY MELISSA STEINKEN
58 fenderbender.com | April 2020
April 2020 | fenderbender.com 59
STR ATEGY
CASE STUDY
T
here are, essentially, two types of consumers in the world, and Dave Dunn feels he’s familiar with both. When a customer walks in to Dave Dunn’s Auto Body in Galesburg, Ill., the shop owner knows there’s a 50-50 chance that the customer will be sold on an estimate. How does he know this? Because, Dunn says, there are transactional buyers who spend time researching the product and are concerned about the purchase, and then there are relationship buyers, who are looking for a long-term, trusted advisor they can trust. It’s similar to how anyone can take the Myers-Briggs personality test, a 16-type personality quiz, and find out if they are an introvert or extrovert. “Transactional buyers start out with a fear that they’re paying too much or are going to be taken advantage of,” Dunn explains. But Dunn notes that, according to research, the transactional mindset can often be converted. Often, people come in with a transactional mindset because they don’t understand all the issues associated with the transaction. The secret to overcoming a customer’s transactional mindset lies in the timing of performing estimates.
Dunn’s body shop opened 43 years ago and has evolved with the times. For instance, 10 years ago, Dunn only owned and operated one location, and his facility was producing less than $8 million in annual revenue, with fewer than 50 employees. And, 10 years ago, Dunn’s team was writing estimates before tearing down vehicles. Fast forward to the present and Dunn now operates a pair of collision repair facilities in Galesburg, Ill., and the nearby Quad Cities area. His collision repair business produces approximately $8.5 million in annual revenue and is well-known in the industry for its customer-first operations.
The Problem
A decade ago, Dunn and his team approached repairs and the associated 60 fenderbender.com | April 2020
conversations customers in a flawed manner, he acknowledges. Dunn had begun to look at the interaction with the customer from a personality perspective, and he realized that offering free estimates was not helping the shop. In fact, it was helping the customer find the wrong answer to their problem. If someone were to walk into the body shop and ask, “Do I need an estimate?” most body shop teams would say, “No. You need a repair.” But, if a shop operator were to answer yes and then immediately start writing an estimate, Dunn says the entire transaction between the customer and the body shop is built upon the wrong premise. It turns into a simple money transaction—and it certainly doesn’t build a relationship.
“You’re looking for a relationship type of customer,” he says. “You want to give them a home.” But Dunn noticed that writing the estimate immediately, while failing to perform a complete teardown at the same time, resulted in a lot of customer-pay customers shopping around.
The Solution
Nowadays, Dunn is also operating a facility that only schedules estimates by appointment and doesn’t advertise free estimates. “We’re definitely not the cheapest choice for the customer,” he notes. Dunn and his staff encourage customers to book estimate appointments, though the shop will still accept walkin customers. “We won’t turn down walk-in business,
GETTY IMAGES
The Backstory
1. “I don’t blame you for thinking that it might not be the same. We all know and have seen that vehicles have been repaired improperly but that’s not going to happen here.” 2. “We are here to be your advocate for the insurance company and to handle any concerns.” Then, Dunn’s staff hits customers with a soft, but direct, sales close: “Would you like Dave Dunn’s Autobody to handle everything for you?” Dunn calls it the “magic close.” The team outlined the pain (the damage) for the customer and then offers to perform the miracle (the repair).
DAVE DUNN’S AUTO BODY OWNER:
DAVE DUNN MAIN LOCATION:
GALESBURG, ILL. (2 TOTAL LOCATIONS) SIZE:
12,000 SQUARE FEET FOR GALESBURG LOCATION STAFF:
52
AVERAGE MONTHLY CAR COUNT:
200 COLLISION REPAIRS PER MONTH; 500 DETAILS (ALL LOCATIONS) ANNUAL REVENUE:
$8 MILLION (ALL LOCATIONS COMBINED)
The Aftermath
Since switching to the aforementioned process, Dunn’s business captures 90 percent of the customers coming into the body shop for an estimate, he says. His team has also been able to save on time wasted within the repair process. Dunn’s triage team of estimators take the vehicle and write the estimate while performing a complete teardown. This procedure eliminates time wasted in writing an estimate, finding hidden damage and writing supplements. but the appointment always takes precedence,” Dunn says. “We sort of have the market trained that you need to get an appointment at any Dave Dunn’s Auto Body.” Those appointments offer Dunn’s team the chance to sit down for 15 minutes to an hour and address a customer’s lingering concern or doubts. Dunn says the customer is likely to ask one of two questions: 1. “Is my car going to be any good when it’s done?” Or … 2. “What’s the fight with the insurance company going to be like?” The estimating team typically addresses those questions with answers such as the following:
The Takeaway
Dunn has found that the best way to approach the overall estimate conversation is by acknowledging to the customer that it’s ok to be nervous, embarrassed, upset, or stressed about the process. The body shop team needs to take a step back and realize how accustomed they have gotten to performing repairs but it doesn’t mean the customer needs to be. After all, the customer doesn’t write hundreds of estimates every year. A collision repair only happens every 7 years or so for most vehicle owners. Body shop staffs need to largely divert attention from the negatives associated with repair work, and “put on a good face for the customer,” Dunn says. After all, he adds, “A doctor wouldn’t tell you all about the death rates associated with an illness, but (instead) focuses on the successes.”
EXPERT ADVICE
EVALUATING AN ESTIMATE RIANNE T WINING, COLLISION PRODUCTION MANAGER AND ESTIMATOR FOR PREFERRED COLLISION CENTER OF MUSKEGON, MICH., HAS A ROUTINE FOR CONVINCING CUSTOMERS THAT ONLY ONE ESTIMATE IS NEEDED WHEN THEY WANT MULTIPLE.
First, don’t brush off their request. I will write more than one estimate, if requested, but I’ll ask questions first to determine why they want more than one. Second, show the customer how one estimate is more costeffective. If the repair is customerpay work, the customer might not realize we can write one estimate for multiple areas of damage. Third, do not rush through the estimate. Ask questions about the accident, take adequate photos and verify steps. Verify parts, procedure, material usage, and options. Lastly, offer the most costeffective solution to the customer. While I do provide other avenues for an estimate, the best decision is the customer’s decision.
April 2020 | fenderbender.com 61
STR ATEGY
FINANCE+OPERATIONS
Efficiently Scheduling Small Jobs How to ensure that small repairs don’t become time-consuming
In today’s repair process, shops have
less profit centers than they did a few years ago, says Chuck Frieberg. One profit center is available almost every day for shops to take advantage of small repair jobs. Frieberg admits that capitalizing on small repairs is a fine balancing act when the shop has a lot of DRPs, but success stems from simply allotting time to jump on the car’s repair the minute it comes through the door. For Devin Fischer, however, a small repair job that’s scheduled correctly could mean the difference between getting a car out on time and a car staying in the repair facility for significantly longer. There’s no reason cars can’t be repaired within three hours if it’s a car 62 fenderbender.com | April 2020
with smaller damage like a front fender replacement, says Chuck Freiberg. Freiberg, president and CEO of CDE Collision Centers in Chicago, has the process down flat and it shows: for three years his first collision repair facility had a cycle time, keys-to-keys, for driveables of 3 days. For nondriveables, that metric was 7 days. Fischer, the owner of Fischer Body Shop in Jefferson City, Mo., says a small repair can be a small dent, ding or bumper repair on a car. According to the 2019 FenderBender Industry Survey, the most common job-start-tojob-completion cycle time is around six business days. About 33 percent of shop owners reported 5–7 days, with another 18.8 percent reporting 8-10 days. That means, close to 50 percent of
shop respondents have a cycle time that most operators would consider long, and Kye Yeung, president of European Motor Car Works in Costa Mesa, Calif., in an April 2019 FenderBender story, predicted that figure to only increase as an industry average in the future, as cars become more complex to repair with ADAS features. So, maximizing small repair work can increase a shop’s revenue to a meaningful extent, Freiberg says. “Small repair jobs produce good money and can get through the shop fairly quickly,” Fischer notes. Not only do small repair jobs help with cycle time, but they also add up. Fischer’s jobs can bring in as much as $1,200 for a repair order.
GETTY IMAGES
BY MELISSA STEINKEN
jobs as they come in. He’ll outline that he'll have one or two, and then ask who would like to work on them for the day. “My goal is to give each technician 2–3 smaller repairs every week,” Fischer says. Freiberg’s team schedules small jobs the same day, aiming for a fast-lane type of repair. He says that the team determines if the job is small enough to repair within the same day based on the estimate’s cost. Jobs with estimates between $2,000 and $3,000 are categorized as small repairs. Both Fischer and Freiberg say delegating small jobs to only one technician is not time efficient. “I can put two of my veteran technicians next to each other repairing the same job and one will do better than the other just because their skill sets are different,” he says.
Saving Time in the Repair
Fischer and Freiberg recently outlined how other shop owners can maximize efficiency on smaller jobs and turn that work into a key marketing tool.
Scheduling the Jobs
Scheduling small repair jobs throughout larger repairs requires time to analyze the week’s schedule. Fischer says he schedules by hours produced by technicians per day. Typically smaller jobs take one to two days to complete but could be as short as a few hours. He dedicates one mechanical technician to performing work on all mechanical work like suspension and alignment repairs. Fischer typically walks around his shop and informs technicians about small repair
To save time and move small jobs easily through the process, Fischer has his team work on tasks to make it faster for the customer. Two such tasks he has his team perform are painting a part ahead of time, or scheduling the repair in during slower periods of the week’s schedule. Fischer’s top three tips to saving time in the repair are: 1. Focus on scheduling to the technician strengths. 2. Streamline the plan on each repair and communicate that to all departments. 3. Prioritize based on actual hands-on time of the repair. Freiberg also recommends painting parts ahead of the repair, but he says that must be done with caution. Even a small change in process, like bolting on parts instead of welding them, which takes longer, can shave hours off a repair. “Always think two days in advance,” Freiberg says. “Think about how the immediate task impacts the schedule within two days.” A good rule of thumb is to make sure your work in progress, or WIP, never exceeds your cars scheduled for the week.
Avoiding Common Mistakes
One task that can waste time on the repair, and that frequently occurs, Freiberg says, is when technicians try to upsell
on estimates. For instance, a technician could replace the bumper but might want to sell it as a repair. In the long term, this process won’t give the shop enough money to justify the longer repair. And, stop painting parts before the customer signs off on the repair. Freiberg and his team ask for a deposit from the customer for very short repairs because, if the part is painted, then the supplier won’t accept returns. Always wait for that deposit or assurance of some sort, he says. One strategy for speeding up the repair process includes mirror-matching parts; parts should be mirror-matched before ordering new ones. Freiberg often sees technicians accidentally ordering a right side part when the team needs a left side. By incorrectly mirror-matching parts, the customer could end up in a rental vehicle past most shops’ three-day policy. Any delay in the repair can lead to more money spent on rental vehicles, more money given to insurance companies and a disgruntled customer.
Marketing Repairs to Customers
“Smaller jobs are the easiest jobs to use to impress a customer,” Fischer says. Fischer remarks that smaller repairs boost a customer’s trust in the body shop. By repairing even small damage can show the customer that the shop puts him or her above all else. While the customer is in the shop, Fischer emphasizes the ease of the process for the individual. He makes sure his team hypes up the fact that small repairs can be done in 1–2 days for the customer’s convenience. After the small repair is completed at Fischer’s facility, the customer receives a lifetime warranty ticket in the mail. The customer is also added to the shop’s mailing list in order to stay front of mind with the customer in case of future, larger repairs. Freiberg says you will have a customer for life if you follow these three steps: 1. Turn the job around promptly and give it back to the customer quickly. 2. When inspecting damage on the repair, get as much information as possible to the customer and really listen to his or her request. 3. Address any customer concerns with professionalism and confidence. April 2020 | fenderbender.com 63
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COLUMNS
IN THE TRENCHES STEVE MORRIS
Beat the Clock
Time management and the art of prioritizing
NICK SPAETH, GETTY IMAGES
The whole concept of time manage-
ment is kind of a misnomer. We don’t really manage time. Time waits for no man, but we can manage our choices about what we do with our time. Some notable quotes help illustrate this pretty well: “It’s not enough to be busy… the question is: what are we busy about” —Henry David Thoreau “You get to decide where your time goes. You can either spend it moving forward, or you can spend it putting out fires. You decide. And if you don’t decide, others will decide for you.” —Tony Morgan These choices we make about what we spend our time on should be predicated on a system of prioritization. When I started doing a deeper dive into learning about prioritization, I was, coincidentally, reading a book by Steven R. Covey entitled The Seven Habits of Highly Effective People. In one section of the book, he drew up a time management matrix that was based on President Dwight D. Eisenhower’s prioritization tool, which he humbly called the “Eisenhower Matrix.” The matrix is a two-by-two box (so four quadrants). By using this matrix at the start of every week, you’ll be able to figure out where you need to spend your time. Most of us already have to-do lists and yet we have no way to prioritize them. To understand what each quadrant means and what belongs in each one, let’s take a look at each quadrant in turn. Quadrant 1 will include tasks and activities that are “urgent” and “important.” Covey subtitled this the “Do” box. This part of the matrix is often referred to as the firefighting box or the “problems and panic” section. Out of necessity, you have to address items that fall into this category, but we really don’t want to spend much time there. Remember that they are urgent and important. Quadrant 2 is where we want to place our focus, energy and time. The second quadrant is the “not
urgent but important” box. Covey subtitled this the “plan” box and used examples such as relationship building, exercise, and vocation (like attending a conference that is likely to help you improve your leadership skills). Long-term projects, goal setting sessions, looking at new opportunities, recreation, and other planning and prevention activities fit into this quadrant. It has been said that if you spend as little as 10 percent of your time taking action on items in this quadrant, you will become exponentially more productive. I believe that at least 25 percent of your day should be spent here in Quadrant 2. Some of the results you achieve may take some time to come to fruition, kind of like planting seeds now and waiting some time for the fruit to be ready. Quadrant 3 is the “urgent and not important” box. I recall that Covey said this is the “delegate” or “avoid” box. In this third box, you’ll find Interruptions, distractions, and most phone calls. When your phone rings, it feels urgent, but is it important? I have found that most phone calls, most emails, a lot of reports and a lot of meetings are completely not important and rob us of our time. Some people are fond of dropping in on you asking “Do you have a minute?” and when you engage with that person, it’s never for just one minute and it’s often not important. Such interruptions and distractions
have to be avoided or you’ll find yourself at the end of the day asking, “Where did all my time go?” and feel like you accomplished very little. The fourth Quadrant is the “not urgent and not important” box. Covey populated this box with time wasters, busy work and doing nothing. It should come as no surprise that items in this box must be eliminated from your daily activities. Why we spend time here comes from recent sociological phenomenon such as FOMO (the "fear of missing out"), and digital connectivity. While these might be pleasant activities, they really are just piddling pastimes. Eliminating these tasks from your daily routines will free up many hours for you each week. Now you have a glimpse into one method for prioritization. I challenge you to spend 30 minutes at the beginning of each week planning your activities and placing them into the appropriate quadrants. By doing this, I guarantee your productivity will jump up and your sense of accomplishment will be phenomenal. You’ll see how much time is wasted in the quadrants 3 and 4 and you’ll be gratified to kick the habit of succumbing to these time wasters. I have a growing respect for another system of prioritization, which I’ll talk about in the next column. For now, I’ll just let you know it’s called Getting Things Done.
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
April 2020 | fenderbender.com 65
Critical Acclaim Manager Victor Gutierrez has helped make Collision and Classics a wellreviewed facility thanks in part to the onus he puts on training employees.
66 fenderbender.com | April 2020
SHOP TALK
VICTOR GUTIERREZ
TRAINING NEVER STOPS A G R E AT S H O P M A N A G E R M A K E S E V E R Y D AY A T R A I N I N G O P P O R T U N I T Y.
V IC TOR G UTI ERREZ
//
COLLISION AND CLASSICS
GENER AL MANAGER //
B E A U M O N T, T E X A S
PHOTOGRAPHY BY LESLIE REAGAN PHOTOGRAPHY
April 2020 | fenderbender.com 67
SHOP TALK
VICTOR GUTIERREZ
V
ictor Gutierrez had his career planned out. He was managing a local Texas restaurant for more than ten years and creating a hub in which locals visited frequently and knew him by name. And then after a mutual disagreement with his boss, he was let go. Until then, Gutierrez strictly viewed his passion for cars as a hobby. He learned how to fix cars during a twoyear, high school trade course and then helped his dad at the used car lot they co-owned. But, it wasn’t until the day Gutierrez was fired from that restaurant role that he thought about turning his passion into a full-time job. Gutierrez kept his eyes peeled for news of a job. Finally, he got a call from a friend who was a painter. His friend informed him of an open position at his shop. “Well, I love cars,” Gutierrez thought. He applied for the position. Turns out, the body shop owner was a frequent customer at his restaurant. The owner of Collision and Classics Inc. in Beaumont, Texas, recognized Gutierrez’s solid work ethic and offered him a position. Fifteen years ago, Gutierrez started out as an estimator. Fast forward to 2020 and Gutierrez has worked his way up the ranks of the shop floor. Today he runs the facility as manager. Despite his unconventional start in the industry, Gutierrez believes it taught him that you can always learn, no matter your stage in life. “Training never stops,” he says, a fact that he strives to teach his team every day.
AS TOLD TO MELISSA STEINKEN
The whole team arrives at the shop every morning at 7:30 a.m. The doors open
at 8 a.m., but before that happens, we go over the schedule for the week. We gather for a meeting and go over if there are any cars scheduled that need to go out, or if anyone has any issues. We also recognize any achievements made during the week. We like to get to 50 cars during the week, so that's the goal on which I focus. 68 fenderbender.com | April 2020
Up and at 'Em Texas shop manager Victor Gutierrez wastes little time upon arrival at work each morning, helping employees plan repairs while also monitoring production via shop management software.
I lead these meetings but the owner, Gerald Condon, attends almost every one so he stays up to date. We use the Nexsyis Collision management system for our production schedule. Once the doors are open, we make
any phone calls to customers to inform them on delays or pickups. I like our management system because it updates customers via text message. We’ve been using the same management system for the past three years. We have a 55-inch flat screen television on the body shop floor, and my team has the management software downloaded onto their phones. In order to help keep myself more mobile, I’ve really enjoyed using the Microsoft Surface Pro tablet as I walk around.
During the morning, I go out and help blueprint cars with the staff. I take the
time to teach my estimators how to improve their skills and help them if they have any issues. I like to focus on training my team because with the technician shortage occurring, it's hard to find new hires. A lot of estimators still need to learn how to understand a repair instead of just writing it on paper. I have them watch as the vehicles are dismantled and try to instill the fact that, if we touch the vehicle, we should get paid for the time. I also encourage them to document every single part of the process. They need the proper documentation, including photos. I strongly believe a teardown needs to be done in order for workflow to go
COLLISION AND CLASSICS OWNER:
GERALD CONDON LOCATION:
BEAUMONT, TEXAS SIZE:
28,000 SQUARE FEET STAFF:
17 (9 BACK END) AVERAGE MONTHLY CAR COUNT:
100
ANNUAL REVENUE:
$4 MILLION
AVERAGE REPAIR ORDER:
$2,850
Emphasis on Team At Collision and Classics Inc. in Beaumont, Texas, employees often meet as a full staff, in an effort to formulate a game plan everyone can agree on.
smoothly. My team will update me as they go along through the teardown process. They send me messages through our management system or by text message. I do take a break around 11 a.m. or noon for lunch. My breaks are usually only
roughly one hour long. After my break, I go back to check on the team on the floor. I do my paperwork close to the end of the day and the rest of the time I'm walking around the shop. When I’m not helping our estimating team, I focus on the parts side of the business. We're always trying to put
factory parts back on the vehicle, and I make sure to take time to research OEM repair procedures to do this
correctly. I also help with price matching so that we’re getting paid correctly for parts ordered. I think it's important for a body shop to become OEM certified. For our shop, I want to be certified in as many OEs as possible, because I think that’s where the industry is heading. For instance, we’re certified in Ford, General Motors, Subaru, Nissan, Fiat Chrysler, Kia, and Infiniti. I make it a priority to research the proper OEM repair standards through OEM OneStop, I-CAR and manufacturer sites. I have a customer service relationship manager who mainly handles customers. As a body shop, we focus on having
a good rating on Google and other social media sites. So, when a customer leaves
a bad rating, I help with the situation. Sometimes we can get false reviews from someone who was never in the shop. I make sure to check first that the customer was in the body shop and then I follow up personally with a customer to rectify the mistake. In all aspects of the shop, I think training should never stop. I think it's im-
portant to not only educate customers on how it's important to repair a vehicle back to the proper safety standards, but I think it's also important to keep teaching your team how to do their jobs better than before. For instance, It may take me an hour to research a repair method but, in the end, that's going to mean a customer gets put into a safe vehicle. April 2020 | fenderbender.com 69
WHY SHOULD YOU ATTEND THE FENDERBENDER MANAGEMENT CONFERENCE?
If you haven’t been to this conference, you are missing out on several
different topics. You get to meet
people who are going through the same growing pains; leaders that
have gone through it, understand
it and can help you. You might not
understand everything, but you’ll walk away with items you can implement
as soon as you return to work. And I guarantee it’s going to help.
PAUL AMATO • Conference Speaker, 2018, 2019, 2020 • Owner, Amato’s Auto Body Inc.
70 fenderbender.com | April 2020
2020
C O N N E C T. T H R I V E . G R O W.
SEE WHAT’S NEW AT FENDERBENDERCONFERENCE.COM THE AGENDA • SPEAKERS • AND MORE!
September 14–16, 2020
Hyatt Regency Minneapolis
April 2020 | fenderbender.com 71
UPDATE
FAIRBANKS COLLISION
evaluate why they may have given a repair facility a poor review. The bottom line, he notes, is that body shops like his, which relies on DRP work, can’t afford poor CSI scores that might cost them future work. That’s why, if Fairbanks Collision ever receives a less-than-ideal review, Tompkins immediately analyzes what went wrong with employees like estimators. “We’re in a customer service industry, first and foremost,” says Tompkins, whose shop currently has an 86 percent closing ratio. Customers’ “second-largest investment, behind their house, is sitting here broken; they need to be reassured that we’re going to do everything we can to take care of them. “How we treat customers, that’s what drives our future business.”
Standing his Ground Shop owner Scott Tompkins shows employees compassion, unless they've made multiple offenses. Then, he severs ties.
Provide advance warning.
How to part ways with a staff members and never look back B Y K E L LY B E AT O N
In his 32 years in the auto industry, Scott Tompkins has had to fire more than a few employees. Yet, the Alaskan shop owner has a clear conscience about it. “I’ve never fired a single employee that didn’t know it was coming,” explains Tompkins, the owner of Fairbanks Collision. “When I let them go, I say, ‘You had to see this coming,’ and all of them acknowledge it. “And I have peace in that.” Of course, like any longtime shop owner, Tompkins has learned some difficult lessons throughout his career. In fact, the firing process itself has taught him plenty. When FenderBender spoke with Tompkins for a 2013 article, for instance, he had recently parted ways with an estimator who had been a valued friend (fenderbender.com/cuttingties). While it was excruciating at the time to fire a family friend, Tompkins eventually took solace in the fact that his business improved after the firing, as closing ratios promptly rose from around 50 percent to 80 percent. Tompkins, whose facility currently boasts a 96.6 percent CSI score and an annual revenue of $3.1 million, has several suggestions for how shop owners can view the firing process with less trepidation.
Re-examine your hiring process.
These days, before Tompkins hires any employee, he tries to gauge the following: Does the worker have a history of caring for their job? And, are they trustworthy? He revisits those questions when determining whether it’s appropriate to fire an employee, too. The process seems to work, judging by the fact that several members of Fairbanks Collision’s 14-person staff have been with 72 fenderbender.com | April 2020
the shop for over a decade. In fact, Tompkins hasn’t had to hire a new estimator since the aforementioned firing in 2013. “I don’t have a high turnover rate,” he says, “and I attribute it to the hiring process. If I don’t think they’re a fit, I just flatout don’t hire them.”
Listen to customer feedback.
Sometimes, Tompkins notes, shop owners need to listen to their customers and
Learn through exit interviews.
Employee exit interviews, Tompkins notes, offer the chance for shop owners to learn from their occasional oversights. That’s why he asks fired employees, during a final sitdown, if they feel management provoked their negative attitude, for example. In one instance, a departing technician complained that Fairbanks Collision’s 45-minute production meetings were too long; as a result, Tompkins now releases each technician from the meeting once their particular jobs have been discussed. “I always ask them what I could have done differently so that they wouldn’t have had these issues,” Tompkins says of departing employees. “Is there anything that’s broken in the system? And I’ve taken their advice and made changes.”
COURTESY RONN MURRAY
Keys for Firing with a Clear Conscience
Tompkins rarely gives struggling employees an ultimatum. Instead, he attempts to show compassion, and ask them what’s wrong in as many as two sitdown meetings. He tries to show that he genuinely cares about them, as well as getting to the root of their problems. But, once an employee earns their third strike, Tompkins feels it’s best to part ways with them. “When I need to talk to someone about performance, I never come at them with anger, ever,” the shop owner says. “I ask them what I can do to help fix the problem. “If I have to talk to an employee three times, by the time it gets to that point, they know I [have been] watching them, and they know where I stand.”
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COLUMNS
OUTSIDE THE LINES JASON BOGGS
The Golden Rule of Goal Setting Two keys to double your success rate
announced we would put a man on the moon by the end of the decade. On July 20, 1969, Apollo 11 landed on the moon with the first human visitors. It was a remarkable achievement that history will not forget. Now, I doubt that you’ve set goals for your company that will be as historical as that moment. However, the way Kennedy formulated the goal played a huge role in it being achieved. As Franklin Covey teaches in his method, Kennedy put his goal in simple terms: X to Y by When. He stated where we were (X being the earth), where we were going (Y being the moon) and when we would get there (the “when” being the end of the decade). Imagine if Kennedy had said, “We will be the world leader in space travel.” How do we define that? If we state our goals without specifics, our team will likely develop it's own definition of the company goals as well. I took a two-day intensive course from Franklin Covey called the “Four Disciplines of Execution,” where I learned how to state goals is such a specific way that everyone involved knew exactly what we were trying to achieve. Before taking this class, I was the worst performer in paint materials gross profit percentage, by far, in the 20 Group I was in. No matter what I tried, we rarely made any improvement in the KPI. After taking the class, I reworded our goal into the X to Y by When format. Sure enough, two months later, we had doubled our paint materials gross profit. Yes, we did more than just reword our goal, but looking back, I am convinced that if we didn’t word our goal in that format, we would not have made any improvement. It’s common to use the destination when formulating our goals. We might say that we want to achieve a 60 percent gross profit on labor sales. While that 74 fenderbender.com | April 2020
is an important aspect, knowing where you want to go is not enough. While it might be obvious to the person who is stating the goal, it might not be so obvious to the people responsible for achieving the goal. You might be hesitant to buy into this concept because it seems so simple, but I can tell you from my own experience that the goals I’ve set using this format have achieved a 100 percent success rate. Now, I don’t have exact data on our success rate for the goals where I didn’t use this format, but I can tell you it was not close to 100 percent. I shared this goal setting format with local business owners in other industries and they have all adopted this format for stating their company goals. Putting your goals into this format is the first step in achieving them. However, there is a crucial second part that, if not followed, will certainly derail your team: the number of goals you work on at one time. Franklin Covey has worked with all sorts of companies all over the world. They have enough data to prove what has worked, and what doesn’t. The course I took was dead set on their position that three goals is the max to work on any given time. The companies that worked on 1–3 goals at a time had a 93 percent success rate in achieving them.
And, they found the 7 percent that didn’t achieve them usually didn’t follow all the steps outlined in the Four Disciplines of Execution. Meanwhile, the companies that set more than three goals maxed out at a 50 percent success rate. I’m aware of the climate of our industry. There are so many changes going on in the collision repair industry that it gives us endless opportunities for goal setting. We can work on ADAS strategies, getting more OE certifications, hiring another tech, increasing our top or bottom line, and so on. I’m sure you would like to achieve all those goals this year. So, how do you narrow the list down to 1–3 items? The term we learned from Franklin Covey was “wildly important goals,” or WIGs. What are the goals that, if you hit them, will have the largest impact on your business? Those are the ones to set as your WIGs and put the other items on the side for now. It doesn’t mean you won’t concentrate on the others at all, but they are not going to be your main focus. It’s nearing the end of the first quarter; it’s time to check in and see how you are doing on the goals you set. If you are not where you want to be, take a look at how the goal is stated, and how many you set. It might be time to tweak your goals to set up your team for success.
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
FUE VANG
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WHY IS CUSTOMER SERVICE IMPORTANT FOR YOUR BUSINESS? Customer service has always been an important component of the collision repair experience for insurance carriers. However now, this metric has even more weight than ever before as it can actually be a key performance indicator (KPI) for many carriers. So how do you ensure your repair center has that positive reputation both online and within your community? Manage Customer Expectations Communicating with the customer at various touch points allows you to catch any question or concerns early. This way, you can address them immediately during the repair process, and does not leave room for any uncertainty down the road. This also shows the customer you care. Address Negative Experiences No facility is perfect, and sometimes mistakes happen. If it is a repair issue, use it as a learning to educate technicians on what went wrong and how to avoid the issue again. If it is a service issue, extending the gesture of a small gas or coffee gift card will go a long way. Focus on the Entire Experience Customer service extends far beyond actual customer interactions, as first impressions are vital. Considering every aspect of the customers’ experience, like the cleanliness of the facility, parking availability and even if you offer coffee – it simply shows you care. If you do not want to sell to a consolidator, but want operational support to enhance your customers’ experience, consider joining the CARSTAR family.
To see if CARSTAR is right for you, call 888-638-5062 or visit CARSTARfranchise.com
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