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CONTENTS Vol. 31 No. 7
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. ©2022 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
ASSOCIATE DIVISION DIRECTOR’S MESSAGE.................................4 Working Together to Move Forward by Paul Yager, AASP-MN Associate Division Director LEGISLATIVE UPDATE.....................................................................5 Legislative Session Ends without Significant Action,
2022 - 2023
Off-season Work Begins
PRESIDENT Jesse Jacobson
by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists
IMMEDIATE PAST PRESIDENT Tom Archambault SECRETARY-TREASURER Mike McLynn COLLISION DIVISION DIRECTOR Travis Doyle MECHANICAL DIVISION DIRECTOR Jeremy Nordgren ASSOCIATE DIVISION DIRECTOR Paul Yager COLLISION SEATS Lee Schlosser Aaron Swanson MECHANICAL SEAT Dan Gleason
STAFF
EXECUTIVE DIRECTOR Linden Wicklund OFFICE ADMINISTRATOR Jodi Pillsbury PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 FAX: 973-235-1963 PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com
LOCAL NEWS..................................................................................6 NATIONAL NEWS ............................................................................8 COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S).......................................................................................10 It’s Getting Hot by Janet L. Keyes, CIH and Carol A. Keyes, CSP COVER STORY ................................................................................14 Investments in Consumer Education Pay High Interest by Chasidy Rae Sisk D.E.G. ESTIMATING TIPS .................................................................18 INSURANCE I.Q. ..............................................................................20 CASH IN ON YOUR MEMBER BENEFITS! .........................................22 Assure Business Success by Hiring the Right People! ADVERTISERS’ INDEX AAA Parts....................................................... 7
Morrie’s .......................................................... 17
A-Con Recycling........................................... 10
Proven Force........................................................ OBC
Aramark.......................................................... 16
Reliable Automotive Equipment..............12-13
C.H.E.S.S.......................................................... 10
Rosedale Chevrolet...................................... 17
Dentsmart....................................................... 8
Sherwin Williams........................................... IFC
Inver Grove Honda/Inver Grove Toyota.... 5
Spanesi............................................................ 23
Jack McClard................................................. 21
Straight & Square....................................... 4, 19
Keystone......................................................... 18
Thomas Greco Publishing.......................... 16
PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com
Maplewood Toyota...................................... 19
Toyota Group................................................ 21
www.grecopublishing.com
Mopar Group ................................................ 9
WIN.................................................................. 11
AASP-MN News
July 2022 | 3
ASSOCIATE DIVISION DIRECTOR’S MESSAGE
Working Together to Move Forward By Paul Yager AASP-MN Associate Division Director
My name is Paul Yager, and I recently took over for Loren Feldkamp as the Associate Division Director. I’m honored to participate in an organization that has values and a mission that I’m passionate about. I’m celebrating my 17th year working at Enterprise Rent-A-Car. Currently, my position is the Replacement Rental Sales Manager for Minnesota. Prior to that, I was an area manager overseeing locations that covered many regions of the state. My experience in the industry has been working directly with collision repair and auto service shops, as well as insurance partners, ensuring strong relationships while focusing on customer service and growth. I’m excited to continue building my relationships within the industry while serving on the board of AASP-MN. Over the past couple of years, the industry has seen many challenges that have impacted everyone in some way. Whether you are a business owner or a consumer, the changes are noticeable. Challenges like the rise in crime, price of fuel, supply-chain issues, surging inflation, and staffing shortages make it even more important for an industry involving transportation to refocus on efficiencies. How can we do more with less, find ways
to adapt to the changing environment and continue to innovate the industry for long-term success? With the fast-changing industry and consolidation of responsibilities, it’s vital to rely on communication and technology to forge ahead. Whether it’s communicating with your customers via text, finding new employees or updating business partners with parts/repair information utilizing all resources at your disposal allows your business to grow and thrive while delivering an experience your customers will remember. While we can’t change the challenges we face, at Enterprise, we recognize ways to stay on the cutting edge of our ever-changing industry and have developed an online Replacement Resource Center to help our most important partners: You! These web pages provide information designed specifically with your needs in mind – including industry reports, technology updates and access to resources to help you better serve your customers. I encourage you to check out these resources at enterprise.com/partnerresources, or please do not hesitate to reach out to me to discuss how we can work together to move forward.
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AASP-MN News
LEGISLATIVE UPDATE
Legislative Session Ends without Significant Action, Off-season Work Begins The 2022 Legislative Session ended without action on the typical even-year priorities, namely a bonding bill, a tax bill and a supplemental budget. While there was a broad agreement on how to divide up the state’s robust surplus between tax cuts, additional spending and keeping funds in reserve, finalizing the details proved harder to accomplish. In the end, the clock ran out on the 2022 session with few bills making it across the finish line. It remains uncertain whether lawmakers will return for a special session to pass bills that were finalized (or close to finalized), including a tax and bonding bill. As we watch for a potential special session, we continue to take on issues that remain top of mind for AASP-MN members, including insurance short-pays. On that front, AASP-MN met with Senate Majority Leader
by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists
Jeremy Miller of Winona, a meeting organized and led by member Greg Melartin (Matt’s Body Shop & Tires; Spring Valley). The meeting included a shop tour and in-depth discussion of the challenges facing AASP-MN members with an emphasis on insurance short-pays. This exciting opportunity resulted in Senator Miller gaining an understanding of the more complex aspects of the short-pay and prevailing rate problems, and how they are becoming increasingly more severe and frequent. Senator Miller thought meeting with the Department of Commerce to discuss the issue and potential enforcement options was a positive next step. He also agreed to review any draft legislation AASP-MN develops over the summer and continue the conversation. A big thank you to Greg Melartin for setting up this meeting
AASP-MN News
continued on pg. 20
July 2022 | 5
LOCAL NEWS In addition, AASP-MN conducted a split the pot raffle which raised $1,015 to support AASP-MN’s 119 golfers and 23 sponsoring Education Fund, which provides companies enjoyed a beautiful day scholarship support to first and while golfing and socializing at the 27th Annual AASP-MN Golf Outing at second year auto service and Majestic Oaks Golf Club in Ham Lake collision repair students attending Minnesota’s automotive technical on Wednesday, June 15. programs. The lucky winner was As always, the competition was Tyler Koch from TGK Automotive fierce, but the teamwork of the (Hugo) who took home $1,015. following golfers earned them the Congratulations, Tyler! first place trophy with a score of 13 under par. They were:
two have taught side-by-side, with Brandon learning the tools of the trade from his former teacher. “I knew that the best way to have a smooth transition when I retired would be for the college to make a commitment for one year to onboard a new instructor,” said Tom. “That the hiring committee selected a past graduate of the program was extra special for me.” Brandon said that back in 2013, he was in the very first class to MN State College Southeast Auto roll their toolboxes from the main Body Program Welcomes Former building down to the then brandBrad Peterson, Sunbelt Business Student as New Instructor new Transportation Center. Even Advisors As reported in the WinoaDly as a student, Brandon had in mind Jim Brown, Foster White Insurance wsNe (www.winonadailynews.com ), returning to teach someday. Kyle Sabot, US Bank after 36 years of teaching Auto Body “Tom and my high school Gavin Olson, Only 1 Auto Glass Collision Technology at Minnesota teachers inspired me to want teach State College Southeast in Winona, as a profession,” said Brandon. “I The second place team came in Tom Brandt is handing over the keys want to make a difference in people’s at 11 under par. They were: to the college’s auto body shop lives.” at the end of the spring semester. “Tom’s always been an Bob Auman, FinishMaster Brandon Boynton, who graduated inspiration to me. He’s worked all Jim Hillman, FinishMaster from Tom’s program in 2014, will of his career to build a premier Justin Pearson, FinishMaster succeed Tom as the new auto body Auto Body Program at Southeast,” Josh Shaw, Shannon’s Auto Body instructor. For the past year the Brandon said. “I’ve met countless past students of his and each of them have nothing but praise for Tom during their time in the program. The quality of instruction has been second to none and that’s something I plan to continue and build on in the future.” Tom Brandt said he will miss working with the students who really want to succeed. “The rest of the world kind of shuts down while 1 2 you’re in the lab working with those students. And it’s a really a good feeling. I know I’ll miss it.” For more information on the Auto Body Collision Technology program at Minnesota State College Southeast, visitsoutheastmn.edu .
27th Annual AASP-MN Golf Outing Highlights
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1. L-R: Kyle Sabot, Gavin Olson, Brad Peterson (not pictured: Jim Brown) 2. L-R: Jim Hillman, Justin Pearson, Josh Shaw and Bob Auman 3. Raffle winner Tyler Koch of TGK Automotive, Hugo 4. AASP-MN Executive Director Linden Wicklund welcomes golf outing attendees. 5. Over 140 golfers and supporters enjoyed AASP-MN's 27th Annual Golf Outing
6 | July 2022
AASP-MN News
WELCOME NEW MEMBER! JUNE 2022 CSI Accounting & Payroll Minneapolis, MN
Minnesota Careers in Auto Repair & Service (MNCARS) MNCARS is a non-profit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state’s college-level automotive service and collision repair programs and, ultimately, into industry workplaces. To further those efforts, MNCARS recently participated in the following events: • Back to the 50s Car Show, June 17-19, Minnesota State Fairgrounds The event, in its 48th year, is hosted by the Minnesota Street Rod Association. The fairground was full of cars, mostly American made, and their proud owners. Events like this help remind people (young and old) of the value in learning how to repair cars and take care of them.
Take advantage of the resources in the MotorMouth toolbox at carcareers.org/motor-mouth/. Get out and get active in your local community promoting industry careers!
Thank You Year-Long Sponsors! Platinum Sponsors LKQ Minnesota Lube-Tech Gold Sponsors AASP National Auto Value /APH CBIZ Elite Worldwide FinishMaster United Fire Group Silver Sponsors 3M Automotive Aftermarket aaa Auto Parts Aramark Axalta Coating Systems Colonial Life Dentsmart PDR Enterprise Rent-a-Car Heartman Insurance NCS/Single Source O’Reilly Auto Parts PAM’s Auto PPG Sherwin-Williams Shop Monkey Suburban Chevrolet Bronze Sponsor C.H.E.S.S AASP-MN News
July 2022 | 7
NATIONAL NEWS ended. In 2003, light vehicle aftermarket product sales finally rebounded to 2.8 percent. www.langmarketing.com
Recession Impact on the Aftermarket Over the years, the aftermarket has gained the reputation of being recession resistant. When the economy does poorly, the aftermarket does well, or so many people have come to believe. However, the aftermarket’s product mix has undergone significant changes over the past 25 years, and today it is less recession resistant than ever. The aftermarket’s recession resistant reputation is based largely on the belief that its volume consists of non-discretionary products, which are necessary for vehicle operation. However, for a number of years, discretionary products, which are not necessary for vehicle operation, have expanded their aftermarket share. This will affect how the next recession (likely this year) will impact the car and light truck aftermarket. Recession Around the Corner Recessions have generally occurred in the U.S. at sixto-eight-year intervals, and one is long overdue. Many analysts believe that a recession will likely hit the U.S. in the next few months, if it is not here already. The last two recessions (aside from the COVID-19 chaos) occurred in 2001 (March to November 2001) and 2008 (December 2007 to June 2009). Examining them can suggest what might be in store for the aftermarket when the next recession strikes. 2001 Recession During the 2001 recession, which lasted only six months, aftermarket growth was slashed by more than two-thirds, as light vehicle aftermarket growth fell below 1.0 percent. It plateaued at that level through 2002 as the aftermarket failed to rapidly recover when the recession
8 | July 2022
2008 Great Recession The 2008 Great Recession played havoc with the aftermarket, hammering sales more severely than at any time in the previous four decades. Car and light truck 2008 product volume plunged to -1.9 percent, down dramatically from the 2.1 percent gain in 2007. Car and light truck aftermarket sales remained negative during 2009, falling another 0.5 percent. New Vehicle Sales, Collapse The 2008 Great Recession differed from all other recessions of the past six decades in its 35 percent plunge in new car and light truck sales, coupled with a significant shift in the sales mix of domestic and foreign nameplates. Miles Driven Hit Hard Miles driven also took a major hit from the 2008 Great Recession. Annual mileage peaked in 2007 and failed to top that annual driving level for another six years. Recession Impact on Discretionary Purchases The next recession will cut discretionary automotive product purchases (such as accessories) and could reduce overall aftermarket product growth by more than 80 percent from its 2021 recovery pace following the impact of COVID-19. During the economic turmoil of 2020, accessory sales flourished despite lower volume among many aftermarket products, mainly boosted by stimulus checks reaching Americans with time on their hands, who decided to spend this “free money” on modifying and upgrading their vehicles. Without stimulus checks flowing in the next recession, accessories will be hit hard.
AASP-MN News
Likely Effects of Next Recession The next recession (likely this year) will affect the aftermarket in several significant ways. First, aftermarket sales volume will be negatively affected, particularly discretionary product purchases. The next recession will cut the strong recovery recorded in 2021 by more than 80 percent, especially if it hits this year. Second, new car and light truck volume will be hit hard by the next recession, with annual volume staying below 15 million and perhaps dropping under 14 million, depending on supply chain issues affecting light vehicle production. Third, miles driven will be reduced, with the likelihood of annual mileage lower than the 2019 pre-COVID driving level. The aftermarket impact of the next recession will be intensified by supply chain issues (some of them directly related to the recession) that will play havoc with new vehicle production and various types of vehicle repair, as parts take much longer than usual to reach repair sites or are not available at all. Six Major Takeaways: • Although the aftermarket has the reputation of being recession resistant, it has changed significantly over the past 25 years in its mix of discretionary and nondiscretionary products. As discretionary (optional)
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products generate more volume, the aftermarket becomes increasingly vulnerable to a recession, when consumers cut spending. Recessions generally hit the U.S. in six-to-eight-year intervals, and one is long overdue. Many analysts believe that a recession will strike the U.S. in the next few months if it is not here already. The last two recessions reduced aftermarket sales. The aftermarket growth rate fell two-thirds during 2001 and 2002. The 2008 Great Recession hit the aftermarket much harder. Car and light truck aftermarket growth was negative during 2008 and 2009, down from a 2.1 percent gain in 2007. New vehicle sales collapsed during the 2008 Great Recession, falling by 35 percent between 2007 and 2009. Miles driven was also affected. After peaking in 2007, annual miles failed to match the 2007 yearly total for six years. The next recession (likely this year) will affect the aftermarket in several significant ways: a substantial reduction in aftermarket product growth, a further decline in new vehicle sales (possibly dropping under 14 million), and miles driven falling below 2019 preCOVID levels.
AASP-MN News
July 2022 | 9
COMPLETE HEALTH, ENVIRONMENTAL AND SAFETY SERVICES (C.H.E.S.S.)
It’s Getting Hot By Janet L. Keyes, CIH and Carol A. Keyes, CSP
Buffalo, New York is no more Didn’t he know better? Why did tropical than St. Paul, Minnesota. It he allow himself to get into such a isn’t a place where you think people bad state? will die from heat. But a 35-year-old That’s the scary part of heat man died from heat exposure just stress and heat stroke – people don’t two years ago. He had just started realize how dangerous a situation it a job as a laborer, working for a is. Victims don’t know that they might subcontractor installing guardrails be close to death. This man worked on a state bridge. Because he was quietly alone, with no one paying new at the job, his foreman gave attention to him – until he collapsed. him an easy job – sorting bolts and OSHA fined the company a paltry nuts into five-gallon buckets, then sum, $7,557. More critically, the delivering them to the folks installing company began taking heat seriously. the guardrails. But it was hot, with They trained their employees temperatures reaching 95F, relative and developed an acclimatization humidity of 31 percent, little wind and program. sunny. And he was1a6/18/20 diligent worker, Your employees don’t work AASP0720_CHESS.qxp_Layout 1:13 PM Page 1 not taking breaks and not taking the outside. But are they in cars that time to get the water he left in his have been sitting outside? Cars car, at the other side of the bridge. act like greenhouses. According to
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the National Weather Service, the temperature inside a car can go up by 40F in only 60 minutes, with most of that rise in the first 30 minutes. If it’s 90F outside, it could be over 130F in the car! Employees may not be in the vehicle for long, but doing that repeatedly can take its toll. Is your shop air-conditioned? The offices probably are. Ironic, as people sitting at desks or standing at counters are less at risk of heat stress than a painter wearing a spray suit or a mechanic struggling to loosen a recalcitrant nut. They may not have the sun beating down on them, but they can still be exposed to too much heat. Outside of the torrid weather, three factors led to the Buffalo
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AASP-MN News
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man’s death. He was new to the job. He didn’t drink enough water. And no one – not the employee, not his coworkers, not his supervisor – paid attention to the distress he was feeling. The circumstances aren’t uncommon. Most heatrelated fatalities occur when temperatures get into the 90F range. And most occur in new workers, regardless of age. It takes time, about two weeks of gradually increasing exposure, to acclimate to heat. That isn’t just getting used to heat. Once people become acclimated, their bodies become better at cooling. They sweat more and begin sweating sooner, but don’t lose as much salt when they sweat. A new employee who dives into the job isn’t acclimated – that person cannot safely keep up with those who have adjusted to heat. People won’t lose acclimatization if they take a weekend off. But if they spend two weeks in northern Canada when it’s hot here, they will lose much of their heat tolerance. They will regain it quicker, though. Acclimatization allows workers to do their job normally when the weather is hot. But we have the challenge of sporadic hot days, so people don’t have much chance to acclimate. It is logical, but wrong, to rely on thirst to know if you need to drink water. People who are dehydrated will be thirsty. But people who are dehydrated are at greater risk of heat illness. Waiting until people are thirsty (and already dehydrated) is a bad practice, because thirst isn’t a good indicator of the body’s need for water. On those hot days, encourage workers to drink. And make it easy to do so, by having water or sports drinks readily available. Freezer pops, especially those that have electrolytes, can help as well. Water is so boring to drink, though! It’s still consistently been found to be one of the best choices for hot weather. Flavored sports drinks contain electrolytes, which can stimulate thirst and help keep the sodium balance in your body, and carbohydrates, which help your body take up sodium. But they may also contain a lot of sugar. And you’ll find electrolytes and carbohydrates in food. The Korey Stringer Institute, which focuses on athletes’ exposure to heat, recommends using water for exercise sessions of less than an hour and sports drinks for prolonged exertion. Be alert for the signs of heat illness. Heat rash isn’t particularly bad – it’s just an itchy skin rash where the sweat can’t evaporate. Heat cramps, usually caused by too little salt, can cause muscle spasms and pain. If a worker tries to power through a heat cramp, muscle damage can develop. Better to take a break, massage the muscle and replace those electrolytes. Much more serious: heat exhaustion, characterized by heavy
sweating, headaches, nausea, and dizziness. If any worker is experiencing that, get them to a cool area to rest and to drink water or, better yet, electrolyte replacement drinks. Monitor their condition, in case it turns into the most dangerous heat illness, heat stroke. Heat stroke kills. Someone suffering from heat stroke is no longer able to cool down. Their body temperature is going up. They may be acting strangely. Their skin will be hot and flushed. This is a medical emergency – they need to be cooled immediately and you need to call 911. The scariest part about heat stroke is that people suffering from it may not realize they are in danger. On those hot days, monitor your workers’ condition and encourage coworkers to keep an eye on each other. Allow more breaks. Set up cooling fans. Provide cool beverages and encourage employees to drink. And if anyone is showing signs of heat stress, take action right away, before it becomes serious. Time in an air-conditioned room, drinking water, and using cold compresses will usually be enough to resolve heat illness.
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AASP-MN News
July 2022 | 11
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COVER STORY
INVESTMENTS IN CONSUMER EDUCATION PAY HIGH INTEREST Do your customers understand what’s involved with repairing a vehicle and running a shop? Do they know how heavily shops invest their time, energy and funds into training, tools and equipment? They may appreciate having safe, reliable transportation, but do they actually recognize the complexity of today’s vehicles? Last month, AASP-MN News talked to consumers to find out exactly what they know…and the initial results were underwhelming to say the least (check it out at bit.ly/AASPconsumer). Yet, after a brief educational session, many consumers developed a better grasp of how much training, effort and expense goes into automotive and collision repair. Education really is key. When repairers invest the time into educating their customers, those vehicle owners better understand what is happening when they take their car in for repairs. How are Minnesota shops instilling this knowledge in customers? A few industry professionals shared their strategies and successes. “The majority of our educational efforts occur shoulder to shoulder with the customer,” disclosed Will Latuff (Latuff Brothers Auto Body; St. Paul). “Whether we conduct an e-estimate or if we talk to the vehicle owner in person, we engage in a dialogue about the car, what we’ll need to do to fix it, what steps we’ll take and why it’s important to conduct the repair. We also explain the value and quality we offer as a certified shop.” AASP-MN Board member Dan Gleason (Pro-Tech Auto Repair; Corcoran) agrees that a well-informed consumer becomes a customer who is equipped to make a good decision. “We adopted digital inspection about three years ago, and going from a paper checklist to the digital version which includes pictures and videos has been a huge benefit. We can mark up the inspection, show them where a component is broken or no longer connected and explain why it’s important to fix. They don’t necessarily understand what that part does, but they can see it looks bad, and they know they don’t want it on their car. Without making that connection, it goes over their head and doesn’t make sense.” Collision repair facilities contend with an additional
14 | July 2022
aspect of the repair process that they must explain to customers. “With us, education about the repairs is conducted during the estimating process, one-on-one at the shop; all in all, 99 percent of our education takes place directly with the consumer,” Dawn Weitzel (Bodywerks Auto Body Repair; Elko) noted. “If customers later call the office with questions, they mainly ask about the insurance process, which is more confusing to them. Some have even called in tears after being treated rudely by insurance company reps. It’s my job to try to reduce their stress, so I do what it takes to help them.” Knowledge is power…and sometimes the consumers’ knowledge empowers shops. Latuff shared an anecdote: “My brother, our front estimator, walked a customer through an estimate to explain what we would do and why it needed to be done. That conversation reinforced that we’re the experts, and as a result, the customer became an ally – they know we’re on their side, so they’re on ours when it comes to simple discrepancies like labor rate disagreements. Educated consumers go to bat for us.” Social media tends to be an important tool for both mechanical and collision shops to attract, retain and educate consumers. “Everyone is on social media, constantly walking around with a phone in their hands,” Gleason acknowledged. “We publish blogs and articles on our website about the types of repairs we do, things to look for and industry trends. To educate consumers, we have to find out where they are and meet them there in a way that’s attractive enough for them to want to learn more.” “The best way to educate customers is to find the most effective means to deliver what consumers need to know to make a good decision,” Latuff agreed. “We use social media to attract customers and educate them upfront by creating awareness related to our OEM certifications and other repair considerations, drawing them into the shop to ask more questions.” Today’s consumers may have a lot of questions – a phenomenon Gleason blames on a cultural and generational shift.
AASP-MN News
by Chasidy Rae Sisk
“My dad and his friends used to putz on cars in the garage. The old gearheads could open the hood, change their fluids or even adjust the carburetor, but the younger generations didn’t really do that while growing up. They didn’t have the opportunity to hang out and change spark plugs with their pals. Now, cars have evolved to the point where it’s rare for the average consumer to possess the ability to tinker with their cars, and few have the passion to learn how. “As that knowledge gap gets further and further apart, it has grown so immense that most people fear being taken advantage of because our industry has such a bad reputation,” Gleason continued. “How can you convince someone who knows nothing about cars to buy into what you’re selling, whether that’s maintenance or safety items? They need an automotive professional they can trust.” At the same time, not all consumers are created equal when it comes to their knowledge about the automotive world. Some customers know absolutely nothing other than where to add gas and how to make their car go. Others have a little basic knowledge and may even be able to check their fluid levels with assistance. Then, there is another kind of consumer – you know the type we’re talking about! – those consumers who talk to a neighbor or do a little research online and decide they’re the experts; they learn just enough to be dangerous and make selling to them that much more difficult. Which consumer is the easiest to educate? “Customers who really don’t know anything are the easiest because you’re not trying to break down false information or dispute what they’ve read or heard,” Gleason indicated. “It’s difficult to convince someone who spends too much time on the internet that we’re doing what’s best for them and their car even though the internet may say something different. We have to combat their preconceived notions, so it tends to require a longer conversation. "Conversely," he continues, "we work on a lot of different cars, so occasionally, a customer will share something they read on a forum that may actually be a valuable suggestion we can implement to make
the process go smoother. If it makes sense, we’re not opposed to trying it.” “Ninety percent of our customers either have basic or no knowledge whatsoever,” Weitzel contributed. “They understand that our job is to return the vehicle to them with high-quality repairs. Often, internet researchers are paying for repairs out of pocket. There’s more discussion time with this person because typically they’re looking to make cuts in the repair process. When possible, we’ll provide options to save money, but we’ll never cut corners or fix a car knowing that the person won’t be happy with the result.” Latuff doesn’t “see much difference between these types of customers. Mike Anderson [of Collision Advice] taught us a lot, including that consumers are looking for empathy, direction and trust. Regardless of how much the customer knows – or doesn’t know – acknowledging their emotions and needs can open the opportunity to educate them on what they need to know. People are more afraid of making the wrong choice than of spending money, so we’ve learned that by taking the time to address consumers’ fears and beliefs, bridge that gap and build trust, they’re more likely to hand their keys over; that’s the biggest win you can have with a consumer.” “Creating a relationship with people who choose our shop is imperative. I give my cell phone number to customers so they can text with questions,” Weitzel shared. “Most people text rather than call. This is just one small way that we can make them feel that their time is valued.” “Once you build that trust, they don’t always want to know more; they’re confident that we are going to take care of them,” Gleason concurred. “We build that trust not only by showing them the problems, but also by taking pictures of the things that are functioning properly, allowing us to tell them, ‘Your air filter looks great,’ which reassures them that we’re only trying to sell them what they need and alleviates some of their anxiety. Sharing this information lets them see what we see, giving us the ability to talk through the problems and come up with a
AASP-MN News
continued on pg. 16
July 2022 | 15
COVER STORY continued from pg. 15
solution with the vehicle owner.” Digital inspections provide a competitive edge for many shops over dealership facilities. But that edge isn’t as sharp as it once was, since a lot of dealers have started to move toward that process because they understand its effectiveness for building trust. “Dealerships keep taking their cues from us because we provide better customer service,” Gleason observed. “But as independents, we have the advantage of being smaller and more personable. Our customers aren’t just a number; they’re people. We know their names and have relationships with everyone who walks in our door. Educating them allows us to develop that rapport. Dealers can try to catch up with us, but this isn’t a gimmick – this is how we’ve done business forever because it’s just who we are.” Education is instrumental in creating and maintaining relationships with customers. “Once they interact with us and we educate them during the estimate, we’re able to really demonstrate the benefits of choosing an independent OEM-certified collision center over a dealership or non-certified shop,”
Latuff stated. “It sets expectations and comes back to the trust factor. By openly communicating with customers, we assure them that we’re going to do the right thing. When we spend time talking to them about what that certification means and why we’re the right choice, we see consumers gain confidence to decide to fix their car with us…even when our estimate isn’t the lowest.” “Teaching the customer about what we do helps get everyone on the same page,” Gleason added. “Keeping customers in the loop allows us to be more transparent, and giving them the information they need to make a good decision demonstrates that we were steering them in the right direction all along. Technology provides a lot of ways for us to educate consumers about their car, but most importantly, we want them to know we’ll always be here if they have questions.” Consumer education can take many forms, but the way you choose to educate consumers is less important than making sure you are educating them. AASP-MN’s Consumer Tips offers a great resource for repairers to use in these efforts and can be accessed at aaspmn.org/consumer-tips.
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July 2022 | 17
ESTIMATING TIPS CCC/MOTOR: Air Bag System Diagnosis/Scanning Operation – DEG Inquiry 20271 response from MOTOR… “After review of MOTOR data, the estimated work time applied to "Airbag System Diagnosis" includes the use of a scan tool, clearing "Air Bag" fault codes and/or recording fault codes that won't clear. The estimated work time does not include component repairs. Please Note: The labor of airbag diagnoses may also be considered when performing pre- and post-scans. If additional labor for diagnoses is required during your scanning, an on-the-spot evaluation should be agreed upon with the parties involved.” Audatex: NOT INCLUDED Body/Structural Repair Operations – It is often beneficial to the end-user to know exactly what additional operations are included and what operations need to be factored separately on the estimate. DEG Inquiry 19992 asks Audatex to respond to specific steps: “The following procedures are not included according to Audatex internal guidelines: Release bonding hot air blower; install temporary and replace panel (create templates); place and remove the vehicle on the alignment bench; clean joint areas; clean flanges with wire brush; prime junction areas;
restore protective sealant; install standard cavity protection.” All Three Systems: Cooling Fan Operation Test is NOT INCLUDED DEG Inquiry 20268, CCC “After review, testing operation of the cooling fan would not be an included operation when R&I/R&R cooling fan is selected.” DEG Inquiry 20269, Audatex “Per Audatex Internal Guidelines, the labor time to bring a vehicle to operating temperature to check the cooling fan operation and operate the A/C to check the A/C cooling fan operation is not included in our labor times. This time should be manually added at users’ discretion.” DEG Inquiry 20270, Mitchell “Mitchell Estimating's Labor to R&I/R&R the cooling fan does not include any allowance to operate the cooling system to normal operating temperature.” Mitchell: RMC Procedure Explanations – Mitchell RMC (Refinish Material Calculator) included and NOT included materials can be viewed here: mymitchell.com/tchs/ helpfiles/RCW/1033/Content/40637.htm
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.
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AASP-MN News
AASP-MN News
July 2022 | 19
INSURANCE I.Q.
Garage General Liability By Janet L. Keyes, CIH and Carol A. Keyes, CSP
Commercial garages can be full of several hazards. They are often filled with moving vehicles, expensive equipment, a surplus of employees and potentially dangerous tools. Even the safest garages will occasionally have accidents, and that’s why it’s essential to make sure that your business is covered. That’s where garage general liability (GGL) coverage comes in. GGL can basically be thought of as a combination of a commercial general liability policy and a business auto policy that’s designed to cover the typical operations of commercial garages. However, as with most insurance policies, there are some important exclusions and distinctions you should understand as you elect your coverage. Garage General Liability: An Overview Garage general liability is designed to cover losses that could occur in the day-to-day operations of your garage. A standard garage general liability policy breaks down covered liabilities into two distinct classes: • Garage operations other than covered autos. This section includes coverage liability for property damage to the garage itself, as well as bodily injury to owners, their employees and their customers. • Operation of autos. This refers to aspects of coverage analogous to many business auto policies. Specifically, a GGL policy will cover vehicles owned by the business,
vehicles being held for sale or any other vehicles owned by someone else and being used in business operations. For example, this would include damages incurred if a business’s manager is driving a demo vehicle and causes an accident, or if the company’s parts driver gets in an accident while making a delivery. Exclusions It’s important to note that a GGL policy will have some exclusions. The most important of which is the “care, custody or control” exclusion. This means that personal property left in the care, custody or control of the garage—including, significantly, customers’ vehicles— will not be covered by the GGL policy. If a customer’s car is damaged while in your company’s care, or if it causes damage while in your company’s care, your GGL could leave you exposed. However, a separate coverage commonly sold along with a GGL policy—garage keeper’s coverage—is designed specifically to provide coverage for that exposure. Keeping You Covered Your partners at CBIZ Inc. are here to help you find the appropriate coverage. To learn more about your GGL coverage options, or for more information on garage keeper’s coverage, contact Brad Schmid at (763) 5492247 or bschmid@cbiz.com today.
LEGISLATIVE UPDATE continued from pg. 5
and leading a thoughtful shop tour and discussion that highlighted the serious issues facing service providers, something AASP-MN members will benefit from in the future. An additional thank you to members who have provided examples of short-pays. We noted some of those examples in our discussion with Senator Miller. We will continue to cite those examples as we meet with the Department of Commerce and other legislators. If you have examples but haven’t yet submitted, please do so by emailing AASP-MN’s Executive Director Linden Wicklund at Linden@aaspmn.org. This meeting is one of many tactics we are pursuing within a larger plan to address short-pays and related issues. Some other approaches we are taking include surveying members to capture how frequently this occurs and the impact on shops and consumers alike, collecting more detailed information about short-pays from shop owners, sharing best practices about documenting
20 | July 2022
and challenging short-pays, meeting with Department of Commerce officials to amplify the issue and seek recourse and refining our legislative priorities for the 2023 session to change the laws.
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CASH IN ON YOUR MEMBERSHIP BENEFITS!
Assure Business Success by Hiring the Right People! The Alliance’s Auto Employee Assessment System, offered in conjunction with Assessment Associates International (AAI), will help AASP-MN members identify employees that not only have the technical skills for the job, but also good motivation, work habits and people skills. How does it work? • Job candidates complete one of two questionnaires: • Service Advisor/Estimator • Technician - including mechanical, body or painter • Candidates are assessed on motivation, attitude, dependability, initiative and other "soft skills." • Assessments are completed over the internet, at any time of day or night and results are emailed to the employer within minutes of questionnaire completion. • Scores are presented comparing the candidate to current, successful AASP-MN member employees. • Shops use the information to identify candidates that are a good fit with their work environment. • AASP-MN has validated these assessment tools,
demonstrating their accuracy, fairness and legal defensibility. Why use it? • Enhanced employee effectiveness and fit with your work environment. • More good hires and less turnover. • Immediate results - a better bottom line for your shop. • Objective, valid and defensible hiring tool. • It is affordable! AASP-MN member pricing is 50 percent off retail price and starts as low as $15 per assessment. Here's how: Contact Nate at Assessment Associates International at (952) 854-6551 or nate@aai-assessment.com.
AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbiz.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.
WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your website, pay-per-click, search engine optimization, social media, and much more! With five levels of RPM to match your budget, goals, and competition, it’s built to drive your shop forward!
EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN members with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance.
REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS CARS COOPERATIVE Contact: Stephenie Sheppard 405-547-4077 / membersupport@cars.coop Members receive discounts on a variety of products and services they use every day! From discounts on paint and rental cars to office supplies and phone services. Over 50 programs available!
EMPLOYEE VOLUNTARY BENEFITS Colonial Life Contact: Deb Ferrao 612-600-4135 / deb.ferrao@coloniallifesales.com or Tracy Bailey 612-801-0139 / tracy.coloniallife@gmail.com Dedicated representatives can help members transform their benefit package with competitive rates, value added services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility to create a plan to fit everyone’s needs. UNIFORM & LINEN SUPPLIES Aramark Contact: Rick Krenz 612-616-5290 / krenz-richard@aramark.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride/Aramark each year. CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available. 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.
22 | July 2022
INFORMATION PROVIDERS Mitchell 1 Contact: Mitchell 1 Representative 888-724-6742 Mitchell 1 offers AASP members special discounts on the Mitchell 1 family of integrated software tools. Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ products-services/collision-repair-shop-solutions/cloudestimating for more information. TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. 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. 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.
AASP-MN News
BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. 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). SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services 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. LIVE-ONLINE & ON-DEMAND TECHNICAL TRAINING AUTOMOTIVE SEMINARS Contact: Tim Houghtaling 920-866-9813 / tim@automotiveseminars.com Discounted pricing to AASP-MN members on all liveonline events, as well as on-demand training videos. Automotive Seminars specializes in diagnostic training that provides automotive technicians with knowledge, testing techniques and data interpretation skills needed to diagnose today’s vehicles. The live-online events and ondemand training videos focus on automotive electronics and engine management systems and are written and created by some of the industry’s leading diagnostic technicians. 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.
For more information contact the AASP-MN Office at 612-623-1110 or aasp@aaspmn.org.
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