AASP-MN News November 2020

Page 1

NOVEMBER 2020

DRP s:

To

STAY

or GO? Part Two

PLUS: AASP-MN ANNOUNCES “Creating an AWAIR Program for Your Shop” WEBINAR

2021 RACE for Automotive Education

POSTPONED DIGITAL BONUS CO NTENT On PAGES 11 & 14

Your Champion. Your Ally. www.aaspmn.org

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AASP-MN News

AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 Roseville, MN 55113 Phone: 612-623-1110 Fax: 612-623-1122 email: aasp@aaspmn.org website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. 2020 All rights reserved. Cover image www.istockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

AASP-MN BOARD MEMBERS

CONTENTS Vol. 29 No. 11

COLLISION DIVISION DIRECTOR’S MESSAGE ............................4

Taking Care of Your Employees by Jesse Jacobson LEGISLATIVE UPDATE................................................................6

Recordkeeping Rules for Minnesota Corporations and LLCs by Eric Johnson, Fryberger Law Firm

2020 - 2021 PRESIDENT Matthew Feehan

“CREATING AN AWAIR PROGRAM FOR YOUR SHOP” WEBINAR REGISTRATION..........................................................7

IMMEDIATE PAST PRESIDENT Carl Thomas

LOCAL NEWS ............................................................................8

SECRETARY-TREASURER Tom Archambault COLLISION DIVISION DIRECTOR Jesse Jacobson MECHANICAL DIVISION DIRECTOR Tony Newman

NATIONAL NEWS ......................................................................10 COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) ................................................................................14

Safety Basics: It’s Common Sense

ASSOCIATE DIVISION DIRECTOR Loren Feldkamp

by Janet L. Keyes, CIH & Carol A. Keyes, CSP

COLLISION SEATS Randy Miller Lee Schlosser

COVER STORY ..........................................................................18 DRPs: To Stay or Go? - Part Two by Joel Gausten

MECHANICAL SEAT Jeremy Nordgren

DIGITAL BONUS CONTENT (@ WWW.GRECOPUBLISHING.COM)

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc.

Insurance I.Q. DEG Estimating Tips UPCOMING EVENTS Creating an AWAIR Program for Your Shop Webinar November 17 • 10:30 a.m.

GRAPHIC DESIGNER Lisa M. Cuthbert | lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com

www.grecopublishing.com

November 18 • 12 p.m.

Visit www.aaspmn.org for details.

PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com

Mech XChange Pre-Employment Screening

ADVERTISERS’ INDEX aaa Auto Parts ....................................................22 A-Con Recycling ................................................9 AmeriPride ............................................................11 Chess, Inc...............................................................14 Dentsmart ............................................................8 Inver Grove Honda/Inver Grove Toyota ....6 Jack McClard........................................................19 Keystone ..............................................................11 Maplewood Toyota............................................20 Mopar Group ......................................................17

AASP-MN News

Morrie’s ................................................................4 MPA ........................................................................IBC Network 1 Solutions ..........................................16 Proven Force........................................................OBC Reliable Automotive Equipment....................12-13 Rosedale Chevrolet............................................17 Sherwin Williams ................................................IFC Spanesi ..................................................................5 Straight & Square................................................20 Toyota Group ......................................................15

November 2020 | 3

COLLISION DIVISION DIRECTOR’S MESSAGE

Taking Care of Your Employees Jesse Jacobson AASP-MN Collision Division Director

I hope everyone is staying

absences, but with testing sites providing 24-hour

healthy, both physically and men-

results, we have minimized time spent at home

tally, as we continue to operate

waiting and shop disruption. We offer to pay for

through COVID-19.

the employees and their family members to get a

Since my last article in June, we have all

24-hour test at a testing site in Woodbury. This

learned how to adapt to the current environment.

has saved us from extended absences over the

We’ve been operating this way for seven months

past few months. Rapid testing is more widely

now, and the importance of keeping our nearly 90

available now and if you pay out-of-pocket, you

employees healthy and safe has been front and

can usually get scheduled the same day to com-

center every day. When we say, “Stay home if you

plete the test. This is one way to minimize the

have ANY symptoms,” we mean it. Whether it’s a

stress on the employee and their family, and to

headache, loss of taste and smell, sore throat,

keep the shop running as smoothly as possible

stomach trouble, etc. – or if anyone they live with

during this chaotic time.

has any symptoms – employees are instructed to stay home and get tested.

offer guidance and support for our employees as

Because of this strict policy, we have had many

4 | November 2020

It is our responsibility as owners/operators to we all navigate these uncharted waters.

AASP-MN News

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November 2020 | 5 3:05 PM

LEGISLATIVE UPDATE

Recordkeeping Rules for Minnesota Corporations and LLCs Last month, this legislative update article focused on required repair shop Eric Johnson practices under Minn. Stat. §325F.62, Fryberger Law Firm which governs the shop’s relationship with repair customers. This month, we are taking a broader view of shop practices for companies organized as corporations or LLCs under Minnesota statutes. Thorough recordkeeping is good corporate governance. However, some businesses may not know that it is also the law. Corporations and limited liability companies organized under Minnesota law must maintain certain records and allow shareholders or members to access the records upon request. This article briefly outlines the statutory recordkeeping requirements for Minnesota corporations and LLCs. Corporations Every Minnesota corporation must keep the following records at its principal office or at another place in the United States designated by the corporation’s board of directors: • Share register – A document not more than one year old containing the names and addresses of the shareholders and the number and classes of shares held by each shareholder;

6 | November 2020

• Meeting minutes – Minutes or other records of all meetings of shareholders and the board of directors for the last three years; • Organizational documents – The articles of incorporation and bylaws, including all amendments currently in effect, and any agreements incorporated into the articles of incorporation; • Financial documents – (1) The financial statement for the most recent interim period prepared for distribution to the shareholders or a governmental agency, and (2) A financial statement reflecting the corporation’s most recently ended fiscal year that includes a balance sheet and income statement for the fiscal year; • Reports to shareholders – Any reports made to shareholders in the last three years; • Director and officer contacts – A list of the names and addresses of the corporation’s directors and officers; and • Other agreements – Copies of voting trust agreements and shareholder control agreements affecting the corporation. A shareholder of a private corporation may demand to see any of the above records, and the corporation must make the records available within 10 days of the demand.

AASP-MN News

Continued on page 22

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November 2020 | 7

LOCAL NEWS 2021 Race for Automotive Education Postponed The 19th Annual Race for Automotive Education would typically have been held in January 2021, but due to the unpredictability of COVID-19 at this time, the Board of Directors has decided to postpone the event until later in 2021. “This event serves as the primary fundraiser for the AASP-MN Automotive Education Fund, which provides financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the automotive service industry,” said Executive Director Judell Anderson. “Hopefully, we’ll be able to get back on the track soon!” Help AASP-MN Raise Awareness of Industry Careers – Be a Motormouth! Since 2016, the Alliance has taken a leadership role in funding and managing Minnesota Careers in Automotive Repair and Service – aka MNCARS. Its goal is to ensure a future workforce for Minnesota’s automotive service industry by raising awareness and recruiting young people into technical college automotive education programs (collision and automotive service) and industry careers. Important aspects of our recruitment efforts include: • Connecting with potential students, their parents and high school influencers, including counselors, to provide a better picture of the pathways to success and opportunity available in the automotive industry; • Driving traffic to carcareers.org, the centerpiece in educating our target audiences and the broader community on the opportunities available within the automotive industry. This hub, and accompanying printed materials, shares information about the exciting careers, success stories and advantages that a postsecondary automotive program offers in get-

8 | November 2020

ting started in the workforce; • Attending career fairs at schools and community locations to raise student awareness of industry careers and encourage them to think of automotive repair as more than a hobby; • Creating the Motormouth toolbox as a resource for auto professionals, like you, to engage in auto career promotion in their local communities; • Creating the MNCARS YouTube channel to reach students and inform them about opportunities in our industry. Check it out and subscribe to see new videos as they are added from our students and partners. As an industry member, you can help raise awareness of the rewarding career opportunities and education programs in the automotive field. The resources in the Motormouth toolbox were created to help you get active in your local community and ensure that the industry – and your business – has the qualified employees it needs to prosper and succeed. The Motormouth toolbox includes:

• Props and handouts to participate in career fairs and events in your local community; • A PowerPoint presentation (with video) that outlines the many career paths and opportunities in the automotive industry. We’ve included a presentation outline that gives you talking points and suggestions for each of the slides, along with best practices for presenting; • Career promotion materials to display at your front counter and/or waiting area and window cling for your door or window; • Digital and social media posts that reinforce and spread the message about industry careers;

AASP-MN News

• Tips and suggestions for ways that you can contribute and help alleviate the workforce shortage.

Thank You to Our Sponsors

The time commitment to be a Motormouth is nominal, yet the rewards are great. The more industry members that are involved and engaged in this effort, the greater our reach will become. So, please visit carcareers.org/motor-mouth/ for tools and information to get started! Also, be sure to follow MNCARS on Facebook at facebook.com/carcareers and feel free to share any of our information on your own social media page(s). Restraint Systems & Diagnosing Multiplexed Data Bus Systems Webinars a Success The Alliance hosted the “Restraint Systems: Repairing Them Safely After a Collision” and “Diagnosing Multiplexed Data Bus Systems” webinars on various dates in October and November. The sessions were presented by William Carpenter, technical training instructor, ACDelco/GM account representative. During the Restraint Systems webinar, attendees learned safety procedures to be followed while making repairs for the safe operation of a vehicle post-accident. The Diagnosing Multiplexed Data Bus Systems webinar focused on diagnostic strategies to hone problem-solving skills for serial data failure modes in multiplex networks and repair methods. Thank you to Suburban Chevrolet for sponsoring these sessions!

The following companies have made sponsorship commitments for AASP-MN’s educational programming and other activities in 2020:

Platinum Fix Auto

LKQ-Minnesota Lube-Tech & Partners Gold AASP National Auto Value Parts Stores Axalta Coating Systems CBIZ AiA FinishMaster Podium PPG Automotive Finishes United Fire Group

Silver aaa Auto Parts AmeriPride Services Colonial Life Enterprise Rent-A-Car O’Reilly Auto Parts PAM’s Auto, Inc. Sherwin Williams Single Source/NCS Suburban Chevrolet Bronze C.H.E.S.S. Twin Cities Auto Glass

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November 2020 | 9

NATIONAL NEWS

I-CAR Launches New Online ADAS Resource Library I-CAR® announced the creation of a robust, online ADAS resource library, info.i-car.com/ADAS, to provide the industry with a centralized information hub in support of the rapid growth of Advanced Driver-Assisted Systems (ADAS) and its accelerated impact on the collision repair process. The complimentary resource features news and information relevant to ADAS training, topics and trends, including insights from ADAS subject matter experts within I-CAR and the inter-industry, as well as: • Webinars • Podcasts • Industry news • I-CAR courses focused on ADAS • Additional resources such as I-CAR’s Collision Reporter magazine and Repairability Technical Support™ (RTS) Portal

“The ADAS resource library is an easy way to quickly see I-CAR’s latest – and upcoming – ADAS courses,” said I-CAR’s Jeff Peevy, VP-technical products, programs and services. He suggested bookmarking the page to keep a pulse on regular updates, as ADAS technology continues to flood the market. For more information, please visit i-car.com/adas.

www.langmarketing.com Billions of Miles Shift to Older Vehicles The over 20 percent plunge in 2020 new vehicle sales (and the open question of when the new vehicle market will return to pre-COVID-19 levels) will reduce the number of vehicles under five years old on U.S. roads. The average age of cars and light trucks will increase, and older cars and light trucks will be driven more annual miles.

Six Major Takeaways: • Approximately 10 million fewer light vehicles under five years old will be on U.S. roads during 2023 compared to 2019, as a result of the onslaught of COVID-19. • Lang Marketing estimates that over 410 billion miles will be transferred from vehicles under five years of age to older cars and light trucks between 2020 to 2023. • This transferred mileage will generate more aftermarket product use per mile during this four-year period than it would have otherwise, since the wear and tear generated by these miles will be directed to older vehicles rather than to cars and light trucks under five years of age. • As older vehicles are driven more, accumulated miles on cars and light trucks in the U.S. (odometer

10 | November 2020

readings) will reach record-high levels, adding another cycle of usage for many types of replacement parts. • More mileage on older vehicles will help extend the upper end of the vehicle repair-age “sweetspot” for aftermarket product use. • These developments will help boost aftermarket product use over the next four years. Consumers Compare Garages & Dealers While consumers have changed their perceptions of garages and dealers over the past few years, strong differences still exist in how they evaluate each of these competing groups of repair outlets. Lang Marketing has surveyed over a number of years how consumers evaluate major types of repair outlets across four key performance factors: • • • •

Repair convenience Technical ability Low price Fairness of price

This iReport focuses on the consumer perceptions of garages and dealers, but it also includes selected findings for repair chains and tire stores. It shows that dealers have significantly increased their ratings by consumers over the past three years in terms of repair convenience, technical ability and fairness of price. Garages have seen the gap between themselves and dealers narrow for repair convenience and fairness of price. Repair Convenience Garages received the highest consumer ratings for repair convenience among the four outlets covered in this year’s analysis, 3.8 (on a scale of 1 to 5), followed by repair specialists with a 3.5 score. Dealers held third place with a 3.3 rating. Consumer ratings of the repair convenience of garages and dealers have changed over the past three years. Garages decreased from a 4.0 to a 3.8 rating, while dealers climbed from a 2.9 to a 3.3 score. By expanding their hours and adding quick lube bays, dealers have become more convenient and customer friendly. These efforts are seeing results. For specific jobs, such as oil changes, quick lubes (repair chains) have the highest rating for repair convenience, but they score lower on an overall basis since they offer a limited menu of repairs. Technical Ability Consumers rated dealers significantly higher than the other three repair outlets for technical ability, with a 4.6 score. Garages were ranked much lower by consumers at 3.0, but stronger than their 2.9 rating in Lang Marketing’s survey three years ago. Consumer perceptions of technical ability vary by type of job. For example, for complex repairs, dealers’ technical ability rating was 4.8, significantly higher than

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other outlets, with garages falling to 2.7. Repair chains and tire stores ranked third and fourth in consumer perception of technical ability. There are significant differences among consumers in how they perceive the technical ability of repair outlets depending on the age and nameplate of the vehicles they own (domestic versus foreign). For routine repairs, such as oil changes, quick lubes rated high this year in technical ability, at 4.2. Low Price Consumers ranked garages best of the four outlets for the low price of vehicle repair, with a 4.2 score. Dealers, in contrast, were rated at the bottom with a 2.9 score. The importance of low price to consumers varies depending on their income, vehicle nameplate and vehicle age. Low price differs in significance by type of repair. For more complex Continued on page 16

AASP-MN News

November 2020 | 11

How Employee Theft Can Devastate Any Business Many business owners assume that their business is too small to be threatened by employee theft, or that all of their employees are honest and loyal. As a result, many businesses only take a passive approach to prevent fraud – responding to incidents of theft only when external sources, such as a tip from a coworker or police investigations, bring them to the company’s attention. However, investigations into employee theft clearly indicate that it occurs much more frequently than employers realize. By taking a few simple steps to ensure honest work practices, you can substantially reduce your risk.

Covering the Common Exposures Since the loss during even a single instance of employee theft can be devastating, it’s vital to take a proactive approach and implement strategies that cover your exposures and deter would-be thieves. The most effective strategies are based on common theft exposures in order to cover the largest risks. In its survey, the ACFE found the following three common exposures: 1. A lack of internal controls to deter theft 2. A lack of consistent internal reviews 3. The possibility for an employee to override existing internal controls

Commonly Overlooked Theft Exposures Employee fraud is a risk that businesses of all sizes need to take seriously. In a recent survey, the Based on these findings there are a number of Association of Certified Fraud Examiners (ACFE) simple, effective strategies that you can use to deter estimated that the annual global loss due to employee thieves, reduce your business’s losses and maintain a theft is approximately $3.7 trillion. positive workplace: Though you may think that the majority of losses from employee theft occur at large corporations, - Employee support programs: When an the opposite is true. Approximately 80 percent of all employee steals from his or her workplace, some cases of fraud occur at businesses with fewer than of the biggest motivating factors are financial and 100 employees, and 50 percent of cases occur at emotional stress. Formal or informal support businesses with fewer than 25. programs can help employees identify other Small businesses can have increased exposures to resources to rely on during a period of hardship. acts of employee fraud because they often don’t have - Management review: A simple review of a adequate safeguards in place. For example, a business business’s day-to-day activities can help identify where a single employee is responsible for accounting exposure areas. For example, management is a much easier target than another business with an should regularly ensure that these simple policies entire accounting team. are followed: Even when business owners see their employees o Require two signatures on checks. as a tightly knit team, they are still a considerable o Review the payroll every quarter. risk to your business. The ACFE found that long-term o Retain and store accurate records of all employees are more likely to steal from a business sales, inventory checks and financial and than new hires – making your long-term employees a bank statements. larger exposure than you might realize. Additionally, - Unannounced audits: A random audit can only five percent of employees who commit fraud uncover an instance of employee fraud or have been convicted of a similar incident in the past. inefficient work practices. These audits should not As a result, you can’t rely on background checks or unduly target any employee, and should be your employees’ work history to protect against theft. conducted by at least two individuals. You may hesitate to label your employees as a - Proactive data monitoring and analysis: Many significant risk to your business – and certainly most, instances of fraud can be caught early if if not all of them, have your best interests in mind. suspicious actions are identified and analyzed. However, you can’t afford to ignore such a significant According to the ACFE, businesses that risk. The ACFE estimates that 58 percent of businesses use proactive data monitoring reduce the losses have no recovery of losses after a case of employee attributed to employee theft by nearly 60 fraud, and a large financial loss could devastate your continued on D2 business. D1 | AASP-MN News November 2020 DIGITAL BONUS CONTENT

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INSURANCE I.Q.

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Access to OEM Owner’s Manuals FREE! The DEG has compiled a list of links to review OEM owner’s manuals. They can be found at https://degweb. org/wp-content/uploads/2019/01/ Manufacture-owners-support-weblinks. pdf. Owner’s manual information may include necessary procedures or requirements not found in the repair manual. An example might include how many tires should be replaced when a single tire is damaged and requires replacement. CCC: Trimming Braces Molded into Bumpers Some replacement parts may be shipped with support bracing that would need to be trimmed away before installing on the car. Any modifications to the component requiring trimming of unneeded bracing would be NOT INCLUDED. Recent DEG Inquiry 17005 indicates “MOTOR suggests using an on-the-spot evaluation for a mutually agreed upon time.”

Mitchell: Labor for Destructive Weld Testing Recent updates to the Mitchell MCE and ULTRAMATE programs will now display “Labor for Destructive Testing as NOT INCLUDED.” Mitchell users can find this operation located in the “Ref Sheet>> Additional Operations>> Welding>> Destructive Weld Testing” in both Mitchell products. This will require an on-the-spot evaluation. CCC: F-150 “Bed Set Back” No Longer Listed – Recent DEG Inquiry 17032 indicates “Estimated Release Date: Closed” Proposed Resolution: MOTOR stated: After review of the procedural steps for “Set Back Box Assembly” vs “R&I Box Assembly” the same procedural steps are required for both operations. For this vehicle it was determined that “Set Back Box Assembly” requires the same estimated work time as “R&I Box Assembly” therefore the operation “Set Back Box Assembly” was deleted. Please note: “Set Back Box Assembly” does not create adequate work space for refinishing operations.”

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view these tips and others on the DEG website, DEGWEB.ORG.

INSURANCE I.Q. continued from D1 percent. Data monitoring could be as easy as establishing certain red flags – such as a large financial transfer or the unexplained absence of inventory – that would automatically be sent to management for review. - Employee hotline: Establishing an anonymous employee hotline can help you discover thefts earlier and limit your losses. You may have employees who are aware of wrongdoing but remain silent in order to protect their identity.

Don’t Face This Risk Alone It can be difficult to know how to react if you ever find that an employee has stolen from you. However, you don’t have to face employee theft on your own. The experts at CBIZ can help you react quickly and decisively to fraud. Additionally, we can help you purchase an employee theft insurance policy, contact legal counsel and provide you with additional resources to protect your business from theft. For more information, contact Brad Schmid at bschmid@cbiz.com or (763) 549-2247.

AASP-MN News November 2020 DIGITAL BONUS CONTENT

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Safety Basics: It’s Common Sense

• People wouldn’t get hurt if they just showed some common sense. • It was just bad luck. • He was in the wrong place at the wrong time. • There wasn’t anything we could do about it. • I can’t control what my employees do.

What do those statements have in common? Besides “I’ve heard them all,” all are false. Do you think a traffic cop would accept any of those excuses if you ran over a child? That’s extreme – but it gets to the heart of why we have safety programs and training. You can’t simply assume that employees know how to do everything right. And if you cannot control what employees do, how can you provide any quality guarantee to customers?

Common sense comes from experience, knowledge and training. I think siphoning gasoline by mouth shows a lack of common sense, because I know how flammable gasoline is, how it can cause chemical pneumonia if aspirated and how damaging it can be from repeated exposure. But I have knowledge and training on chemical hazards. You might know it is a bad idea because you tried it and swallowed some gas and you won’t be doing that again. You want employees to gain knowledge and training without going through painful learning experiences. So, how do you know what safety precautions to follow? OSHA regulations explain most of them. (OSHA regulations are usually developed out of other people’s painful experiences.) Many of the regulations can be lumped into three big categories: Things people do, equipment use and building issues. The latter often reflects building codes.

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AASP-MN News

Things people do They work with chemicals. So, provide training on the hazards of chemicals and on how to find out more about those hazards. They might wear respirators. Make sure they’re healthy enough to wear the respirator comfortably. Ensure it’s the right type for the job, based both on whether it removes the right contaminants and on whether it provides the right amount of protection. Verify that it fits well enough to give them enough protection. Have them keep it clean, so they don’t develop face rashes from it. They’re exposed to noise. When they grind, sand, machine or work with compressed air, they’re exposed to eye hazards. So, you need to provide them with ear, eye and face protection, and make sure they know how and when to use it. Equipment use Most equipment and tools meet standards for safety and reliability. But they need to be used the way they were intended to be used, according to the manufacturers’ guidelines. Whether you own the equipment or it belongs to your employees, require that it be kept in good condition. Where do employees get the knowledge and training on safety hazards? Certainly, in part, from vocational training and continuing education. But they also learn a lot from their managers and coworkers. You need to ensure that they learn the right way. An example: Nearly every vo-tech requires that students wear safety glasses whenever they are in the shop and welding helmets when appropriate. But once they start working in a shop where no one wears safety glasses, that habit disappears. That brings up the next part of having a strong safety program: Enforcement. If you can direct employees to work on this pink car, even if they hate pink, you can direct them to wear safety glasses. But you need to lead by example. It’s really hard to get employees to do something that you refuse to do. Continued on page 16

WHY GENUINE PARTS? It’s the Right Thing to Do

You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Inver Grove Toyota 1037 Highway 110 Inver Grove Heights, MN PH: 651-306-4630 FAX: 654-457-8705 www.invergrovetoyota.com

Burnsville Toyota 14730 Buck Hill Road Burnsville, MN 55306 800-448-5912 PH: 952-435-8401 FAX: 952-435-8515

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ToyotaPartsAndService.com AASP-MN News

November 2020 | 15

NATIONAL NEWS

Continued from page 11

repairs, price has much less significance to consumers than it does for routine repairs and maintenance.

Fairness of Price Garages received the highest consumer ratings for fairness of price, with a 3.8 score, better than the 3.3 rat-

ing of dealers (up from 3.1 three years ago). Much of this improvement can be attributed to dealers now offering non-OE products and lower service rates for older vehicles and the used vehicles that they sell, especially nameplates other than what they sell new.

COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES, INC. (C.H.E.S.S.)

Continued from page 14

The final part of a strong safety program: Think about and write down what you’re doing. OSHA requires documented safety programs for respirators, personal protective equipment use and hearing conservation. Minnesota OSHA now requires an AWAIR program, which is essentially a general safety program. (How will you identify hazards? Communicate? Enforce?) Why? Creating those written programs means you have to think about who is responsible for different aspects and how you’ll implement them. (You can create your own AWAIR program by participating in the Alliance’s program on November 17. See page 7 for more info.)

Building issues Electrical, fire and life safety codes predate OSHA and are updated more frequently than OSHA standards. If you’re in compliance with those, you probably are in compliance with a lot of OSHA requirements. Are you prepared for emergencies? Can people get out quickly and easily? If the fire is small, do they have fire extinguishers at hand and know how to use them? You don’t want electrical fires. You don’t want to shock people. So, guard all live electrical components. Don’t overload circuits. Use wiring that’s up to code. Fires will put you out of business. You can reduce the risk. Store flam-

mable liquids in appropriate containers and appropriate locations. Don’t spray flammables anywhere other than a sprinklered paint booth. Check for fire risks before anyone welds or uses a torch. You’ve used your experience, knowledge and training to create a successful business. You know that running a business takes more than hiring employees and telling them “just do it.� To keep your business successful, you need to keep your employees working – and that means keeping them working safely. Plan for that, just as you plan for your company’s continued success. For more information, contact Carol Keyes at 651-481-9787 or carkey@chess-safety.com.

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AASP-MN News

November 2020 | 17

COVER STORY By Joel Gausten

DRPs: To Stay or Go?– Part Two Are DRPs worth it? Well, that depends on who’s answering the question. In this second installment of our multi-part series on one of the industry’s most controversial topics, we speak to a shop owner who has drawn a deep line in the sand and another industry pro who sees value – and occasional struggles – in balancing both sides of the argument. Standing Alone Czech Auto Body in Buckman is located across from a cornfield, while a cattle farm sits nearby. Considering that the long-running business isn’t exactly situated in a bustling metropolis, it would be understandable if owner Jeff Czech sought out DRP relationships to help drive work to his door. But, surprisingly, he has thrived in business for 32 years without signing a single contract with an insurer. How does he do it? Through the word of mouth that results from always putting the vehicle owner first. “We’re very specific about working with the customer. A lot of insurance companies like aftermarket parts; I educate [consumers] on it and work with the insurance company from there. People like to see that […] I cannot remember the last time I put an aftermarket part on a car, simply because I educate my customers.” About a decade ago, he was approached by a major insurer to join its network. It didn’t take much deliberation for him to pass on the offer. “I guess the thing that turned me off was the fact they came in and said, ‘We’re going to send all this work to you, but we need you to work at this wage over here. For total losses, we want you to write them all up. That’s just part of it; you don’t get paid for any of that.’ They had a bunch of other stipulations, and my response to them was, ‘So, I’m going to do all this extra work for less so that I get more work? My workload is already full.’” Thankfully, Czech has found ways

18 | November 2020

to incentivize consumers to utilize his services since he moved the shop to its current location 17 years ago. In addition to providing 24-hour towing and working with AAA, he has eight loaner cars available to customers in need. Last year, he took out radio ads in the Little Falls market for the first time. The response was immediate and continues to keep the shop busy. “That has brought people to us in loads. I was very surprised by the amount of people who came. Right now, I have the most people I’ve ever had work for me, and I’m the furthest behind.” Although he continues to succeed with his independent facility, he admits that refusing to be a DRP does come with some headaches. “Shop rates are always a big battle. I don’t understand how 10 different insurance companies can run surveys in this exact same area and come out with different numbers on every one of them. I think some of [the companies] just use the shops and the public; [they] aren’t going to move [their rates] until the shop starts charging the customer and they get enough complaints. It’s kind of a bad deal, because my feeling is when the customer leaves my shop, they shouldn’t be paying anything more than their deductible. If they have to pay more than their deductible, they’re going to a different shop next time.” Additionally, Czech is adamant that DRPs should not be added to the mix when insurers determine what they are paying shops in a particular market. “They tell you the ‘prevailing wage’ in the area in which the shops are at. My question is, are those DRP shops or regular shops? They don’t ever like to answer that. If it’s DRP shops, those are under contract with [those insurers]; I’m not under contract. They can’t hold me to the rates of their contracted shops. That’s not fair; they’re getting benefits in other places where I’m not.”

AASP-MN News

The DRP Push and Pull Darrell Amberson, president of operations for the LaMettry’s Collision chain, knows a thing or two about dealing with DRPs. In his lengthy guest article in the July 2019 Multi-Shop Operator Supplement of ABRN (“Are You in a Relationship?”), he offered some pointed words in regard to the frustrations felt by some who engage in these agreements: DRPs have become like a drug addiction. We are so dependent upon them that we continue to pay more and more to have them. We feel like we can’t get away. Ending a DRP is frightening in terms of the potential loss of business. To a large extent, we have turned over much of our own ability to gain customers to the insurers. They have had the influence, and we as repairers have allowed and supported that. Currently, LaMettry’s follows what Amberson calls a “blended model” of DRP and non-DRP work at its 10 collision repair locations. He notes there are both advantages and disadvantages to this framework. “We have some DRPs, and we work hard to maintain a good relationship with insurers in non-DRP relationships at the same time. With the DRPs that we do have, they require the shop to prioritize their work. If we

don’t have too many DRPs and instead have one or two larger ones, that does allow LaMettry’s to prioritize them to some extent. At the same time, we have a lot of respect for all of our customers and don’t want to put any of them in a second seat.” Not surprisingly, he is one of many repair professionals who’s noticed some considerable changes to many DRP structures since the start of COVID-19. Last spring, Progressive made headlines by announcing its new “Apron Relief Program,” a $1 billion endeavor touted as an attempt to assist “customers, employees, communities and agents” in these unprecedented times. According to a statement found on Progressive’s official website, the insurer provided checks totaling over $2 million “to all active auto and commercial network shops” to be used at these facilities’ discretion. Although Progressive’s move provided assistance to its DRP shops hit hard during the pandemic, Amber-

son points out that some carriers have responded to declining claim counts this year by reducing staff and putting more burdens on their partner shops. “I have seen some evidence of some insurers using the reduced claim count as further leverage to strongarm shops to reduce costs.” In addition to DRP work at certain locations, LaMettry’s boasts several OEM certifications and dealership relationships. The chain chooses which direction to go in based on the needs of a particular market. Generally, the company aligns with OEM programs in areas with a high volume of exotic vehicles and pursues DRP agreements in markets that feature more mainstream vehicles. In Amberson’s mind, an ideal DRP scenario is a mature relationship built on compromise. “I think a lot of collision repairers falsely throw the term ‘partnership’ out there when some DRPs don’t behave like a partnership at all. It’s more of a master-servant relationship. Ob-

AASP-MN News

viously, every business is going to prioritize their own interest, but a good DRP relationship is one that has some concerns for the other party and can work more in harmony. “Some DRPs behave in a way where it’s all about the insurer and reducing costs,” he adds. “Rarely will those companies talk about safety, and they’re not focused as much on customer service. But a better DRP is one where both parties share concerns over those things, and each side recognizes that the other side has to make a living and that the cheapest methodology isn’t always the best.” More than 30 years after the arrival of DRPs in the national spotlight, views on their necessity and relevance to the industry remain divided. No matter where someone stands on the issue, one mindset seems to trump all: In the world of collision repair and insurer relationships, fairness matters most. Look for Part 3 of this feature in next month’s AASP-MN News.

November 2020 | 19

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AASP-MN News

CASH IN ON YOUR MEMBER BENEFITS!

Net Driven: Optimizing Your Business Through Responsive Design In the wake of COVID-19, searching online has become the “new normal.” You need to be ready to connect with your customers on their own terms, no matter where they are. Everyone has witnessed how COVID-19 has already dramatically accelerated this trend over the past few months and, with 53 percent of users abandoning any website that takes more than three seconds to load, the need for every business to have an optimized, easy-to-navigate website has only increased. While your website is still the heart of your digital presence, much of today’s browsing happens on a wide range of devices with different screen sizes. For example, Apple and Samsung alone are currently selling products with more than 30 different screen sizes! Add the number of tablets, laptops and desktops on the market and you’ve got 100-plus screen formats. That’s why your website has to be based on what is known as a responsive design.

Responsive design allows your website to automatically detect the visitor’s screen size and orientation and change the site layout automatically to provide a seamless browsing experience. Responsive websites adapt to all screen sizes and resolutions, not only on desktop but also on mobile, tablet and sometimes even on a smart TV. But the big driver behind updating your site to a responsive format can be summed up in one word: Mobile. Ninety-six percent of Americans now own a cell phone – 81 percent of which are smartphones. Mobile technology has enabled consumers to shop anywhere they are at any time, so having a site with a responsive design is critical. Net Driven uses the latest design techniques ensuring your website is built for your success and AASP-MN members who choose Net Driven are eligible for a $500 discount off their first-year setup fees. To learn more about Net Driven’s digital marketing solutions, visit netdriven.com or contact Rich Mullen at rmullen@netdriven.com or 877-860-2005, ext. 224.

AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums.

LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge EMPLOYEE BENEFITS marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your Business Planning Professionals website, pay-per-click, search engine optimization, social media, Contact: Dennis Begley and much more! With five levels of RPM to match your budget, 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN members goals, and competition, it’s built to drive your shop forward! with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. Net Driven Contact: Rich Mullen EMPLOYEE VOLUNTARY BENEFITS 877-860-2005, ext. 224 / rmullen@netdriven.com Net Driven is a market leader in website and internet Colonial Life marketing solutions designed exclusively for the automotive Contact: Deb Ferrao industry. AASP-MN members who choose Net Driven are 612-600-4135 / deb.ferrao@coloniallifesales.com eligible for a $500 discount off their 1st year setup fees. or Tracy Bailey 612-801-0139 / tracy.bailey@coloniallifesales.com INFORMATION PROVIDERS Dedicated representatives can help members transform their benefit package with competitive rates, value added Mitchell1 services at no cost and complimentary legal document Contact: Mitchell1 Representative preparation service. Colonial Life has the tools and flexibility 888-724-6742 x 6986 to create a plan to fit everyone’s needs. Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE & Teamworks products. For UNIFORM & LINEN SUPPLIES more information, contact Customer Service at 888-7246742, ext. 6986. AmeriPride Services Contact: John Majchrzak 612-670-4034/ majchrzak-john@aramark.com Mitchell International Discounted pricing to members on rental of uniforms, Contact: Mitchell International Representative entrance mats, shop rags, etc. Purchases are also 800-238-9111 discounted. Members receive annual rebate equal to 10% of AASP members receive a 15% discount on any Mitchell their business with AmeriPride each year. RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ products-services/collision-repair-shop-solutions/cloudestimating for more information. CREDIT CARD PROCESSING Association BankCard Services TECHNICAL INFORMATION HOTLINE Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz IDENTIFIX Competitive rates for AASP-MN members. Terminals and 800-288-6220 printers sold at cost. Monthly rental of equipment is also Members enjoy discounted prices on the industry’s #1 available. technical information hotline, Direct-Hit.

AASP-MN News

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.

November 2020 | 21

LEGISLATIVE UPDATE

Continued from page 6

A shareholder may also demand to see any other corporate record, but is not entitled to get it unless the shareholder proves the demand is reasonably related to his or her interest as a shareholder. If a corporation fails to produce records as required, the shareholder could sue to force the corporation to produce them and, if successful, could be awarded attorney fees and other costs. Such failure could also be used to support

22 | November 2020

a shareholder’s demand for a fair value stock buyout if the information not produced is material and the shareholder is unfairly prejudiced. LLCs Until 2018, the statutory recordkeeping and access requirements for Minnesota LLCs were similar to the specific requirements for corporations. But the new Minnesota LLC statute, which became applicable to all Minnesota LLCs on January 1, 2018, is much more flexible. For example, there is no specific list of

AASP-MN News

records an LLC must keep. Rather, the LLC operating agreement may provide recordkeeping responsibilities to members, managers or a board, depending on the LLC’s governance structure. Nonetheless, thorough financial and organizational records should be kept because LLCs are still required to produce records and information to members upon request. For member-managed LLCs, the general rule is that a member may inspect and copy any record maintained by the LLC regarding its activities, financial condition and other circumstances, to the extent the information is material to the member’s rights and duties under the LLC operating agreement or applicable law. Further, even without a member demand, the LLC and all members (to the extent members have the necessary knowledge) must provide to each member any information concerning the LLC’s activities, financial condition and other circumstances that is material to the member’s rights and duties under the LLC operating agreement or applicable law. For manager- and board-managed LLCs, the general rule is that a member may obtain, inspect and copy full information regarding the LLC’s activities, financial condition and other circumstances if the member seeks the information for purpose material to his or her interests as a member, if the member makes a written demand to the LLC describing the information sought and the purpose for seeking it, and if the information sought is directly connected to the member’s purpose. The LLC operating agreement may limit or clarify these general rules for accessing and producing company records, so long as it does not unreasonably restrict the LLC’s obligations to make records available or members’ rights to obtain records and information. By following the recordkeeping requirements in Minnesota law, corporations and LLCs will both reap the benefits of sound corporate governance and aid in carrying out their obligations to shareholders and members.

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