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Ending Myth-information
A Publisher’s Rant
April 2017 Volume 11, No. 4 $5.95
www.grecopublishing.com
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SIMPLER. FASTER. BETTER. Original BMW replacement parts represent the ultimate in safety, quality and reliability. Imitations can be less expensive but often lack the fit, finish and function that is expected from your BMW customers. With most parts in stock, BMW of Fairfax is your best choice for Original BMW parts. · · · ·
One stop shopping experience with on-shelf availability exceeding 16,000 line items. Beltway’s most predictable and dependable delivery system to meet your business demands. Same day availability on most parts ordered before 2:30pm. 24 / 7 ordering convenience through Collision Link.
BMW of Fairfax Wholesale Parts Hotline: 800-879-2269 (1-800-TRY-ABMW) Parts Direct: 855-397-4426 24 Hour Fax: 703-641-8562 2805 Old Lee Highway, Fairfax, VA 22031 Orders accepted by phone, fax, and now e-mail to speed your delivery and your repairs. Ask about our next-day UPS delivery. Email: parts@bmwoffairfax.com Visit us on the web: www.bmwoffairfax.com April 2017
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April 2017
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CONTENTS April 2017
DR. MIKE! 26 DON’T JUST SURVIVE — THRIVE! A Day with “MIKE ANDERSON & FRIENDS“ An unforgettable day of facts and fun. BY NICK FERNANDES
30 INDUSTRY PULSE
Dear Hammer & Dolly Local participation thoughts from Mike.
34 ASK MIKE What Do I Do When an Insurer Won’t Pay Me for What I Want or Need?
Stock Images © www.istockphoto.com
TECHNICAL FEATURE Cutting through the falsehoods and getting to what’s real.
20 DIAGNOSIS MYTH-INFORMATION BY LARRY MONTANEZ III, CDA
DEPARTMENTS 6 8 10 12 13
GUEST FEATURE 38 BUILDING A PRODUCTION
Putting efficiency and productivity within reach using SOPs, job descriptions and more. Read into how to make communications and flow happen by implementing systems.
COMPLIANCE MODEL
14 15 15 16 43 44
BY KEITH MANICH
45 46
Calendar of Events
Publisher’s Message THOMAS GRECO Editor’s Message JOEL GAUSTEN
Executive Director’s Message JORDAN HENDLER WMABA Sponsorship Page 2017 WMABA Golf Outing Announcement What’s WMABA Up To?
WMABA Membership Application News From BASF
Meet the Board: Ashley Kruger President’s Message MARK SCHAECH, JR.
WMABA Board of Directors Advertisers’ Index
April 2017
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Industry training opportunities and don't-miss events.
CALENDAR OF
EVENTS
CLASS LISTINGS
April 4, 2017
SQUEEZE-TYPE RESISTANCE SPOT WELDING Subway Auto Body, Gambrills, MD 2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Delcastle Vo-Tech, Wilmington, DE
April 18, 2017 SCRS Open Board Meeting & Annu Sheraton Pittsburgh Hotel at Statio al Election n Square, Pittsburgh, PA For more info, visit scrs.com
April 19, 2017 SCRS Repairer Roundtable & Corpo Sheraton Pittsburgh Hotel at Statio rate Member Recognition & Awards Luncheon n Square, Pittsburgh, PA For more info, visit scrs.com
April 19-20, 2017 Collision Industry Conference Sheraton Pittsburgh Hotel at Statio n Square, Pittsburgh, PA For more info, visit ciclink.com
May 17, 2017 2017 WMABA Golf Outing Heritage Hunt Golf and Country Club 6901 Arthur Hills Dr, Gainesville, For more info, visit wmaba.com VA 20155 /events/golf-outing/
April 5, 2017
SECTIONING OF STEEL UNITIZED STRUCTURES N T Auto Body Inc., Alexandria, VA
April 6, 2017
ADHESIVE BONDING Caliber Collision Center – Randallstown, MD REPLACEMENT OF STEEL UNITIZED STRUCTURES Criswell Collision Center, Annapolis, MD HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY King Volkswagen, Gaithersburg, MD STEEL UNITIZED STRUCTURES TECHNOLOGY & REPAIR Caton Auto Body, Laurel, MD
April 11, 2017
PLASTIC & COMPOSITE REPAIR Jones Body Shop, Bel Air, MD STEEL UNITIZED STRUCTURES TECHNOLOGY & REPAIR Caton Auto Body, Laurel, MD HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Delcastle Vo-Tech, Wilmington, DE
April 12, 2017
STEERING & SUSPENSION DAMAGE ANALYSIS Frederick Co. Career & Tech, Frederick, MD
ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT Criswell Collision Center, Annapolis, MD PLASTIC & COMPOSITE REPAIR King Volkswagen, Gaithersburg, MD FULL-FRAME PARTIAL REPLACEMENT Keystone – Linthicum, Linthicum, MD
April 25, 2017
REPLACEMENT OF STEEL UNITIZED STRUCTURES Caton Auto Body, Laurel, MD
April 26, 2017
FULL-FRAME PARTIAL REPLACEMENT Waldorf Toyota, Waldorf, MD
April 27, 2017
ADHESIVE BONDING Criswell Collision Center, Annapolis, MD SQUEEZE-TYPE RESISTANCE SPOT WELDING Frederick Co. Career & Tech, Frederick, MD
May 2, 2017
April 13, 2017
STRUCTURAL STRAIGHTENING STEEL Subway Auto Body, Gambrills, MD PLASTIC & COMPOSITE REPAIR Delcastle Vo-Tech, Wilmington, DE
April 18, 2017
CORROSION PROTECTION Criswell Collision Center, Annapolis, MD STEERING & SUSPENSION DAMAGE ANALYSIS King Volkswagen, Gaithersburg, MD STEEL UNITIZED STRUCTURES TECHNOLOGY & REPAIR Caliber Collision Center – Randallstown, MD
AUTOMOTIVE FOAMS King Volkswagen, Gaithersburg, MD WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Uni-Select USA, Baltimore, MD HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Criswell Collision Center, Annapolis, MD VEHICLE TECHNOLOGY & TRENDS 2016 Delcastle Vo-Tech, Wilmington, DE
April 19, 2017
HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY N T Auto Body Inc., Alexandria, VA MEASURING Subway Auto Body, Gambrills, MD
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April 20, 2017
April 2017
May 4, 2017
May 9, 2017
BEST PRACTICES FOR HIGH-STRENGTH STEEL REPAIRS Canby Motors Collision Repair, Aberdeen, MD SECTIONING OF STEEL UNITIZED STRUCTURES Caton Auto Body, Laurel, MD
May 11, 2017
STEERING & SUSPENSION DAMAGE ANALYSIS Criswell Collision Center, Annapolis, MD FULL-FRAME PARTIAL REPLACEMENT Frederick Co. Career & Tech, Frederick, MD STEEL UNITIZED STRUCTURES TECHNOLOGY & REPAIR King Volkswagen, Gaithersburg, MD REPLACEMENT OF STEEL UNITIZED STRUCTURES Uni-Select USA, Baltimore, MD
May 16, 2017
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Caton Auto Body, Laurel, MD HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Keystone – Linthicum, Linthicum, MD STEEL UNITIZED STRUCTURES TECHNOLOGY & REPAIR Delcastle Vo-Tech, Wilmington, DE
May 17, 2017
STEEL UNITIZED STRUCTURES TECHNOLOGY & REPAIR Subway Auto Body, Gambrills, MD
May 18, 2017
ADVANCED STEERING & SUSPENSION SYSTEMS DAMAGE Criswell Collision Center, Annapolis, MD
May 23, 2017
REPLACEMENT OF STEEL UNITIZED STRUCTURES Waldorf Toyota, Waldorf, MD REPLACEMENT OF STEEL UNITIZED STRUCTURES Delcastle Vo-Tech, Wilmington, DE
May 25, 2017
FULL-FRAME PARTIAL REPLACEMENT Criswell Collision Center, Annapolis, MD
www.i-car.com or (800) 422-7872 for info
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Audi dealers strive to make you an Audi Genuine Parts fan •
Audi Parts Professionals are your subject matter experts on collision parts, replacement components and mechanical items.
•
Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.
•
Installing Audi Genuine Parts contributes towards improved cycle time that makes both your customer and their insurance company happier.
•
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.
Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Arlington 3200 Columbia Pike Alexandria, VA 22204 703.739.7490 Fax: 703.684.8420
Audi Bethesda 5206 River Road Bethesda, MD 20816 Parts Direct: 240.762.5636 Parts Fax: 301.718.1847 www.audibethesda.com
Rockville Audi 1125 Rockville Pike Rockville, MD 20852 Parts Direct: 301.296.2870 Parts Fax: 301.762.5055 www.rockville-audi.com
Audi Annapolis 1833 West Street Annapolis, MD 21401 Parts Direct: 443.482.3280 Parts Fax: 443.482.3281 www.audiannapolis.com
Audi Chantilly 14839 Stonecroft Center Court Chantilly, VA 20151 703.956.2100 Fax: 703.956.2139 www.audichantilly.com
Audi Silver Spring 3151 Automobile Boulevard Silver Spring, MD 20904 844.413.6929 Fax: 301.890.3748 www.audisilverspringparts.com
Audi Virginia Beach 2865 Virginia Beach Boulevard Virginia Beach, VA 23452 Toll Free: 800.277.2122 Parts Direct: 757.687.3483 Fax: 757.687.3490 www.checkeredflag.com
April 2017
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PUBLISHER’S
MESSAGE
Thomas Greco
(973) 667-6922 thomas@grecopublishing.com
A PUBLISHER’S RANT
This time of year is always a tough one in the publishing business. The way it works for us is that we send out advertising renewals around the end of November and collect them over the next 30-60 days. As someone who has been doing this for a long time, I’ve come to expect that there will be some losses and some gains, especially after the January billing goes out. Before I continue, please allow me to ask you to support all of the advertisers in this magazine. Without them, you wouldn’t be reading this magazine each month. And I know you read it, because I am blessed to hear your compliments at meetings and trade shows (as well as in emails) month after month, year after year. We began publishing Hammer & Dolly over a decade ago and believe it or not, some of the advertisers from that time are still with us! That’s pretty amazing. Our advertisers are not only loyal and dedicated, but they’re also smart. That’s why I don’t understand when I look through some of our competing publications and I see vendors in there who are in our backyard yet not in our magazine. Now I know this sounds like a sales pitch or a bunch of complaining, but I’d honestly like to know why. It can’t be the circulation. We are the only publication that specifically targets over 3,200 shops in the Washington D.C., Virginia, Maryland and Delaware areas. We don’t venture into New York, New Jersey, Pennsylvania or New England. Others can say they reach 8,000 or 10,000 or a million shops, but why would you want to advertise your products to places you don’t service? It’s counterproductive and a waste of money. I don’t get it. It can’t be the content. We are the only publication with in-depth features and columns dealing with what’s going on in this area. Yes, you will find features on national issues and products that affect everyone in the industry, but our focus is mostly on what’s happening right here. In your backyard. You’re not going to have
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April 2017
Our advertisers are not only loyal and dedicated, but they’re also smart. That’s why I don’t understand when I look through some of our competing publications and I see vendors in there who are in our backyard yet not in our magazine. to flip through dozens of pages about a shop fire in Florida or a new regulation in Connecticut. We focus on stuff that affects you. Right here and right now. We also have over 75 YEARS’ combined editorial experience putting this magazine together. 75 YEARS. I’ll put our staff’s experience up against anyone’s. So it can’t be content. I don’t get it. Is it price? Hell, we’ll beat anyone at that, too. I don’t get it. Okay, you know where I’m going here. Maybe I sound petty or insecure. So be it. But let me tell you the most annoying thing about those local vendors who choose to spend their money with our competitors instead of with us. Our company works in partnerships with industry associations to produce our magazines. In other words, a part of every dollar spent advertising in this magazine goes back to WMABA. A part of every dollar spent advertising in this magazine goes back INTO THE INDUSTRY. I’m sorry. As an industry veteran for over 30 years, that says something. I don’t see many other publishers giving a percentage of their gross sales back to the industry. Literally giving checks back to the industry. Every month. We do that. Our magazines help fund our partner associations. Our competitors? Well, they can give all the awards or prizes they want, but it’s not the same. Look, I’m no saint. I’m a businessman like you. But I always support those who support me. If I have a similar choice in purchasing something, I’ll be damned if I choose the one who doesn’t support my industry or my family over the one who does. So do me a favor. Look at the advertiser’s list on page 46. Are you using those vendors? If not, please give them a try. Are you using a local vendor who’s not on that page? If so, please call them and ask them why they aren’t in this magazine. If it’s a budget problem, I fully understand. We all understand. But if they’re advertising in one of our competing magazines, then please ask them why they aren’t supporting YOUR industry. End of sermon. H&D
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April 2017
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Joel Gausten
EDITOR’S
(973) 600-9288 joel@grecopublishing.com
MESSAGE A VISIT WITH AN OLD FRIEND
When I took over as editor of Hammer & Dolly a little over a decade ago, my very first interview for this magazine was with none other than Mike Anderson. Back then, Mike was a member of the WMABA Board of Directors and the owner of two successful collision repair facilities. He was also already a legend in the area (and throughout the national auto body scene) for his forward-thinking nature, strong business acumen and commitment to serving the industry. Above all, he was known for his kindness, generosity and willingness to help his fellow repair pros overcome the common obstacles that hindered their success. From my first phone call with him way back in 2007 to my latest chat with him just a few minutes before sitting down to write this message, every conversation I’ve had with Mike has been an exchange with a man driven by enthusiasm, knowledge and conviction, and his desire to improve this profession remains an inspiration. Mike spends more than 300 days a year on the road (that’s not a typo), so it’s always a big deal when he comes back to his home turf and delivers some of his trademark insights. This month’s issue not only has coverage of Mike’s recent all-day WMABA presentation in Maryland (plus some supplemental commentary on the event from the man himself), but it also includes the debut of “Ask Mike,” a new regular WMABA OFFICERS
PRESIDENT
VICE PRESIDENT
TREASURER
SECRETARY
IMMEDIATE PAST PRESIDENT
Mark Schaech, Jr. mark@marksbodyshop.com 410-358-5155 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928 Phil Rice phil@ricewoods.com 540-846-6617 Don Beaver don.beaver3551@gmail.com 443-235-6668
BOARD OF DIRECTORS
Rodney Bolton (rbolton@aacps.org) 443-386-0066 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Barbara Chase (barbara@siskautobody.com) 301-855-5525
ADMINISTRATION
Ben Gibson (bgibson@harrisonbodyworks.com) 804-355-8151 Ashley Kruger (akruger@baughautobody.com) 804-285-8045 Bill Hawkins (whawkins@mybmwannapolis.com) 410-349-2578
EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116
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feature where he offers his responses to some of the industry’s biggest questions. We look forward to receiving plenty of submissions from our readers for “Ask Mike” and keeping our new contributor nice and busy in the months to come! A lot has happened in the 10 years since I first heard Mike’s voice on the other end of the phone, but what has remained constant is his determination to change the auto body field for the better. We’re pleased to be able to feature him so prominently in this issue, and we hope you enjoy this visit with an old friend from the WMABA area. As always, if you have any ideas for Hammer & Dolly content or thoughts on a possible local seminar or event, please reach out to us or WMABA Executive Director Jordan Hendler. Our contact information is below. H&D
April 2017
STAFF
PUBLISHER SALES DIRECTOR EDITORIAL DIRECTOR CREATIVE DIRECTOR ASSISTANT EDITOR OFFICE MANAGER
Thomas Greco thomas@grecopublishing.com
Alicia Figurelli alicia@grecopublishing.com
Joel Gausten joel@grecopublishing.com
Lea Velocci lea@grecopublishing.com
Nick Fernandes nick@grecopublishing.com
Donna Greco donna@grecopublishing.com
PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2017 Thomas Greco Publishing, Inc.
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IF OFFERING ONLY ORIGINAL MINI PARTS IS A CRIME... THEN YEAH, WE’RE GUILTY. At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function.
For Original MINI parts, contact any of these authorized MINI dealers. MINI of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 fax: 410-349-2586
MINI of Baltimore County 720 Kenilworth Drive Towson, MD 21204 Toll Free: 844-635-4347 410-296-MINI (6464)
MINI of Sterling 21826 Pacific Blvd Sterling, VA 20166 888-954-8222 fax: 571-434-7727
MINI of Alexandria 5990 Duke Street Alexandria, VA 22304 703-461-6250 fax: 703-751-0595
MYMINIANNAPOLIS.COM
MINIOFSTERLING.COM
MINIBALTIMORE.COM
Crown MINI 8710 West Broad Street Richmond, VA 23294 Toll Free: 800-237-0130 804-527-6860 fax: 804-965-6254 CROWNMINI.COM
MINIOFALEXANDRIA.COM
© 2017 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
April 2017
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EXECUTIVE DIRECTOR’S
MESSAGE
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
DR. MIKE WAS ON THE MIC! There are a couple things I wanted to make sure you had a chance to know, review and check out from the recent Mike Anderson meeting (that you were likely not in attendance for): Everyone should have a succession plan. He suggested that we have a future WMABA meeting to go over what it means to either sell the business, become a phantom stockholder or protect the business with a family trust and pre-nups that keeps ex-spouses or other vultures out. Keep in mind that without a pre-nuptial agreement, a divorcing spouse from an heir can come after their inheritance. Wouldn’t that be terrible?!
When he had a shop, he would send his rates certified mail with a cover letter to all insurance companies. Every quarter, the shop would send out the letter of rates, including the statistical data and government cost of living increases – as well as the increases in IT, equipment and training. Basically, it included anything justifying the reasons behind the rate change to promote education of insurance representatives as to why it was necessary to make the change. You should check out the following websites that came up in the discussions:
EstimateScrubber.com – If you want a free trial to this site that checks for missing operations – A.K.A. FREE MONEY! – then let me know and I’ll make sure you get it!
DriveAluminum.org – Showing new vehicles with aluminum. Enough said.
BoronExtrication.com – A cool site dedicated to the emergency extrication information on vehicle structures for emergency personnel, such as firefighters, police and EMTs. It’s also interesting to see the vehicle diagrams that they have on the site. If you work with any local first responders, send them here! WorldAutoSteel.com - Not to be outdone by aluminum and boron, the steel industry also has a website of information about steel usage in vehicles and the communications they have with automakers. Keeping up on their usage of high-tensile steel or super-high strength steels is just as important as aluminum and other metals.
If Mike comes back, you need to make it. Every shop there emailed me to thank us for having him speak. You may have known Mike from being a body shop owner/manager, like you, but you have to put that aside and come see him as an industry inspirer, motivator and friend. Where he is now is a place of camaraderie, leadership and education. He’s incredibly entertaining, but it is all very useful to you in your day-to-day operations. If the humdrum of this industry has you in the dumps, then you need to pull yourself out of it to be at our meetings. We always have one thing going for us: No one will judge you, oppress you or beat you up. The people at our meetings are all there for one reason: To get better. Thanks for supporting us by reading, and get that Membership Application in. You owe it to yourself to make sure this industry is around for you in the future! H&D
USO.org – There are multiple divisions in our area of the USO, and they are looking for career objectives for military personnel being released back into civilian life. Wouldn’t it be great to get these well-trained people into our industry?! (WMABA is working on this, too, so check with us to see progress.)
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective. 12
April 2017
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THANKS
YOU WMABA thanks their generous supporters of the
LEVEL 1
Corporate Sponsor Program for 2017!
We encourage YOUR SUPPORT of those who SUPPORT US! For more information about the sponsorship program, please contact Executive Director Jordan Hendler at (804) 789-9649 or email jordanhendler@wmaba.com
www.wmaba.com
LEVEL 2 Automotive Training Institute Certified Automotive Parts Association FinishMaster Mid-Atlantic Paint & Supply National Coatings and Supplies WheelsOnsite
April 2017
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2017 GOLF OUTING MAY 17, 2017 Shotgun Start at 1:30pm HERITAGE HUNT GOLF AND COUNTRY CLUB
6901 Arthur Hills Dr. Gainesville, VA 20155 www.heritagehunt.net
SIGN UP TODAY AT wmaba.com/events/golf-outing/
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Find more association updates at www.wmaba.com.
WHAT’S UP TO? WMABA MEMBERSHIP: THE UN-SECRET PLAYBOOK It’s always a good time to get involved in WMABA. If you’re reading this, your first benefit is already being realized: Staying up to date on the news in our area and beyond.
Get Your Team Jersey Supporting WMABA is an investment in the future of your business and your industry. By becoming a member, you are represented in all the places the Board or executive director go. Whether at a trade show like SEMA, assisting with the SCRS OEM Technology Summit regarding certified repairs or locally at the state capitol meeting legislators or testifying at a hearing, your interests and the interests of all repairers are at the forefront. Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team. Get Educated WMABA offers issue-specific, topic-driven education throughout the year. Participation in special events and local meetings, such as the Audi Training Center-hosted seminar and tour, offers your business the best in opportunities to advance your understanding of changes within our industry.
The Playbook The association is your resource for all things related to your business. Whether you have a question about current Labor Rate data, operations, customer interaction, insurer relationships, vendor products or national news, your association is the place to ask first. Through our relationships nationally, we can even take issues to the forefront of places such as the Society of Collision Repair Specialists, Collision Industry Conference or national contacts for insurers and vendors. Locally, we research governmental regulations and oversight to make sure the repair industry is protected from any negative legislation. Represented in both Virginia and Maryland, WMABA proposes and opposes recommended bills that come into the legislature during open session. Also, we work with consumer-related entities, government agencies and other related industry organizations to ensure that the voices of the repairer and their customer are heard. Many repairers take advantage of the knowledge and community the association has for navigating situations that arise. A simple phone call or email can circumvent many issues our members encounter.
Call the Game As a member, you decide your personal level of participation. Do you have interest in committees that address particular issues you feel passionately about? Would you want to be a Board member and assist in guiding the direction of the association? How about sitting on the sidelines so you can focus on your own business? All answers can be correct! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved. The minimum is getting your membership. This year can WIN with your commitment to the betterment of your business and your industry. Sign up today! H&D
JOIN TODAY!
April 2017
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[NEWS FROM] BASF
BASF APS-CERTIFICATION turns your dream shop into a reality by improving touch and cycle time. For years, your shop grew in size, profit and number of repairs, with customers and vehicles lined up for service. Then, your profits slowed. Your shop was full, but not growing. And technicians had to wait for parts before starting repairs.
When claims are down, totals are rising and there’s more capacity than is needed, shops ask one of two questions: How to fill capacity when sales are down, or how to increase sales when production appears to be running at capacity. Both have the same answer—improve touch time and cycle time.
BASF creates chemistry for collision repair centers. And that expertise helped us create a solution that solves congestion and boosts profitability: The shop of your dreams.
Culture and leadership are important parts of APS success and BASF’s business coaches are your personal guides to your shop’s tranquility and profitability.
Soon, you will be ready to start your unique APS procedures. Each step of the way, your BASF team will work alongside you to implement the productivity plan. Results can be immediate:
“We produced over 1,000 labor hours in our second week. Our painters produced over 430 hours as a team, both well above our average. Three disassembly techs flagged over 100 hours for the week. We are producing more hours with less effort and chaos,” said Tim Dys, Bodyshop Manager of Shaheen Chevrolet (Lansing, Michigan).
The shop of your dreams is BASF APS-certified. It’s a shop where the front office is two steps ahead of the back-end, while painters and technicians dance around each other like a scene in a movie.
Nearly 100 collision repair centers throughout the US and Canada have taken BASF’s Advanced Process Solutions (APS) program, and we proudly have 100% customer satisfaction.
“We compete in a packed market. There’s a big difference between surviving and flourishing,” said Robert Walne, Herb’s Paint and Body (Dallas, Texas) owner. “BASF’s APS gave us standardized systems across several locations and improved our performance, allowing us to grow year after year.” APS is proven to drive sales and profitability by opening capacity and helping attract new business. Our top 25% of APS shops have increased sales an average of 27%, and have seen their touch times doubled and their cycle times cut in half. We partner with collision center owners and managers to develop a customized APS plan. From beginning to end, BASF provides strategy and instruction on how best to improve shop performance.
Beginning with an APS planning session (I-CAR– approved), BASF builds a customized plan based on shop-specific expectations, skillsets and resources. Every shop is different, so each individual shop receives an individual plan.
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After APS: Shops see an increase in labor hours and sales RO due to a complete disassembly at the beginning of the repair process. The APS process eliminates mistakes, delivering a more peaceful environment with less chaos from rearranging cars and processing supplements.
“We just had the highest sales year ever and there was less running around than when we produced half the volume. APS added capacity and we filled it! Everyone is making more money and working the same hours, and the work environment is much more enjoyable!” said Dunshee Body and Frame (Kalamazoo, Michigan) owner Joe Townsend.
Reduced cycle times, increased touch times, fewer supplements, increased capacity, higher sales, improved profitability and a better work environment. It can all be achieved with BASF Advanced Process Solutions. So whether your goal is to open capacity or fix more cars, your dream shop is now only steps away.
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Contact these Ford or Lincoln Mercury dealers for all your parts needs: WALDORF FORD 2440 CRAIN HWY, WALDORF, MD 20601 Phone: 301-843-3028 Fax: 301-843-0334 e-mail: parts@waldorfford.com www.waldorfford.com
SHEEHY FORD 5000 AUTH RD, MARLOW HEIGHTS, MD 20746 Phone: 301-899-6300 Fax: 301-702-3650 www.sheehyford.com
© 2017, Ford Motor Company
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KOONS FORD OF ANNAPOLIS 2540 RIVA ROAD ANNAPOLIS, MD 21401 Phone: 410-266-3083 Fax: 410-224-4239 www.koonsford.com
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TECHNICAL
FEATURE DIAGNOSIS
MYTH-INFORMATION
A myth is defined as “a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief or natural phenomenon.” Information is defined as “knowledge communicated or received concerning a particular fact or circumstance; news, or knowledge gained through study, communication, research, instruction, etc.; factual data.” Misinformation is defined as “to give false or misleading information to, false or inaccurate information, especially that which is deliberately intended to deceive, false or incorrect information, that is spread intentionally or unintentionally.” Now there is a mashup word to describe the misleading and incorrect information running around the collision repair industry. This descriptive word is myth-information. Myth-information is defined as “a myth that is combined with misinformation disguised to be or believed to be factual information.” It is the classic example of “just because you believe it doesn’t make it so.” Myth-information is a story that’s told again and again in an attempt to intentionally fool others into believing it to be factual and true. The myth-info serves to explain why something is the way someone wants you to believe it to be for the purpose of selling you on their agenda. In this month’s article, you will need to reference a dictionary, and I will confirm or deny some of the biggest lies – oops, sorry – myth-information you have heard.
Electronic Diagnostic Evaluation Many myths have been created due to the confusion of the ALL NEW collision repair diagnostic protocols that have come out of nowhere. It was shocking to us, too, as 15 years is like, what? YESTERDAY? Wait, you didn’t know or realize this? No one knocked on your door and said, “Hey, look at this?” Oh, right, it wasn’t handed to you, so some of you didn’t raise a hand to go research and read. These days, there is major confusion over
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some common terms in the collision repair industry that are currently used in the mechanical diagnostic field (for the past 20 years). Now let’s not start making up our own terms and definitions to make ourselves feel more important. (Let’s not forget the whole incorrect MIG welding issue.) I have read articles where terms such as “pre-scan,” “postscan” and “post-repair calibration” are being coined. Why? First of all, the term “scan tool manufacturers” is incorrect. The tools are diagnostic tools or diagnostic scan tools, not just “scan tools.” When a vehicle is in a collision event, two very important diagnostic operations or procedures must be performed. One is a diagnostic scan of the vehicle modules for any fault codes or diagnostic trouble codes (DTCs). NO, A LIGHT ON THE DASHBOARD OR INSTRUMENT PANEL WILL NOT BE LIT. The fact for those caught in the 1980s is that a Malfunction Indicator Lamp (MIL) will not illuminate for 80 percent of the issues with a vehicle during normal use and will not illuminate for 99 percent of the issues with a vehicle involved in a collision event. A diagnostic test must be performed to ensure all systems are operational. If every system had a MIL, you would have over 400 lights on the dashboard for each system malfunction issue. The other diagnostic operation is premeasuring the vehicle. (More information is in the next section.) During the repair process, because the battery must be disconnected and reconnected multiple times (and, in many cases, computer modules will be disconnected and the vehicle will have to be powered to move it around the
shop), other codes may be set that will require resetting/clearing. Now keep in mind the statements, “Push the vehicle around the shop,” or “It is your fault the code got set” are not only ignorant, but they prove how uneducated the person saying it is. As such, these are classified as myth-information. Once the vehicle is repaired, a diagnostic test must be performed to check functionality (and, in many cases, to relearn, reinitialize or even reset the system). Some systems need to be reintroduced to each other after replacement or just removal and reinstallation. For example, a back-up camera with steering guidance must be realigned or introduced to the steering angle sensor after removal or replacement of the truck lid/lift gate/hatch or replacement of the camera unit. Parking aid sensors/cameras on some vehicles and lane departure and distance cruise control systems on most will require diagnostic testing after repairs are completed. Additionally, almost every single OEM requires a check of the Occupant Weight System (OWS) after a collision. This is to ensure the sensors or bladder in the passenger seat is reading the known weight placed on the seat accurately during the sensitivity test. This will guarantee that during a subsequent collision event, the seat reads the weight of the occupant correctly (if occupied) and the appropriate airbag system response is commanded (even no deployment if a rear facing child seat occupies the front passenger seat). For more information on development and training, go to the Collision Repair Diagnostics Definitions section of I-CAR’s website (tinyurl.com/zfes822).
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Fact overcomes fiction.
Pre-Measuring Structural Diagnostic Evaluation The foundation of the vehicle is the structure. Whether it is a full frame vehicle or monocoque (unibody) vehicle, the steering and suspension components are bolted directly to the structure. The applied collision impact forces put a great amount of stress on not only the vehicle structural components (as they transfer the collision pulse), but the steering and suspension component mountings can also be displaced. The myth-information I hear all the time is, “The gaps are fine, so there is no structural misalignment,” “There is not enough damage to warrant measuring the vehicle” or the very ignorant, “It looks good.” In fact, pre-measuring is more important than pre-scanning a vehicle. If you did not pre-scan the vehicle, you can still correct your mistake by post-scanning and still be able to clear codes without causing too much of an issue. Conversely, if you do not pre-measure the vehicle, numerous issues could occur during the repair process or even worse – after repairs are completed, such as (but not limited to) the following:
BY LARRY MONTANEZ III, CDA
Uncovering more sustained damage during the repairs, prolonging the repair and tying up the bench while waiting for parts to arrive. Discovering more sustained damage, causing the vehicle to become a total loss. Bolt-on part misalignment during attempts to reassemble the vehicle. Discovery of steering or suspension component damage during the wheel alignment. Discovery of structural misalignment during the wheel alignment. Three to six months after repairs were completed, the vehicle owner returns with a complaint of balding tires.
These are only a few of the issues that could occur by not performing a complete diagnostic pre-measuring of the vehicle. For more information on pre-measuring, read our articles on our EME54 Theory (tinyurl.com/gsf39hv and tinyurl.com/gmuvjan). I hope this article has enlightened you to the importance of postcollision/pre-repair diagnostic testing and pre-measuring to ensure proper and safe repairs. As always, please feel free to contact me with any questions. H&D Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.
Executive Director’s Thoughts
Scanning of any kind is like a doctor who takes your blood pressure, temperature, measurements and weight before they even get to why you've come to visit. Knowing the baselines of the electronic systems, and the structural status, is the only way to properly estimate for repair and cycle time. How else can you be sure of either? - Jordan Hendler
April 2017
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KEEP IT GENUINE
INSIST ON GENUINE GM PARTS
We stand behind our product, providing collision repair professionals and vehicle owners peace-of-mind and confidence. Contact these Genuine GM Parts dealers for all your parts needs: NU CAR CHEVROLET 172 North Dupont Highway New Castle, DE 19720 Phone: 800-633-6606 Fax: 800-346-5285 e-mail: parts@nucar.com www.nucar.com
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OURISMAN CHEVROLET 4400 Branch Avenue Temple Hills, MD 20748 Phone: 301-899-6990 Fax: 301-899-9375 www.ourismanchevrolet.com
April 2017
POHANKA CHEVROLET 13915 Lee Jackson Memorial Highway Chantilly, VA 20151 Phone: 888-266-2993 Direct: 703-502-3729 Fax: 703-968-0932 www.pohankachevrolet.com
RADLEY CHEVROLET 3670 Jefferson Davis Highway Fredericksburg, VA 22408 Phone: 800-355-8202 Direct: 540-898-0055 Fax: 540-891-2074 www.radleychevrolet.com
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WMABA
FEATURE DON’T JUST SURVIVE - THRIVE! A Day with “Mike Anderson & Friends” It’s fitting that WMABA’s recent educational program with currently available to independent repair facilities, Anderson has veteran presenter Mike Anderson (Collision Advice) was held at found safety issues in more than 1,000 vehicles in the past two years North Point High School in Waldorf, MD. With the world of collision that did not have warning lights on the dashboard. repair becoming more demanding by the day, Anderson returned to “If you give the vehicle back to the customer without scanning it, the region where he first began his career to teach WMABA someone can die.” members ways to better position themselves in an evolving A major reason why scanning has become a critical procedure is profession and secure a more prosperous future. Considering the because today’s cars are much more complex than ones in the past. rapidly changing nature of today’s industry, it was with little surprise Anderson revealed that modern cars are even more advanced than that he stressed the importance of OEM certifications, scanning, aircraft, as an F-35 Fighter jet contains 24 million lines of code while technology and proper estimating to members of the association. an average high-end vehicle contains 100 million. Above all, Anderson stressed that body shops should thrive “We are not fixing the cars that our fathers and mothers, rather than just survive, and he offered attendees ways to grandfathers and grandmothers, uncles and aunts and brothers and accomplish this goal. He described what he called the “three-legged sisters fixed. Ladies and gentlemen, we’re building a highly complex stool” model that every business needs to device that is a computer with wheels and focus on – sales/marketing, production and tires.” finance/human resources. He explained that Anderson added that he sees a need business owners tend to gravitate towards for greater consumer-focused technology in their comfort zone and abdicate the other the industry, recommending that shops areas they’re not comfortable with, which update their customers on their vehicles via often leads to disaster. As an example, a text and email. In addition, he stressed the body tech who opens his or her own shop importance of not immediately giving the might tend to focus on production because customer a promise date unless the vehicle that’s what they know best. As a result, they has been 100 percent disassembled, all don’t monitor the other areas of their authorizations have been gained and business. approved and all parts have been “For example, six months down the researched for their availability. road, your bookkeeper comes to you and “If you’re giving them a promise date says, ‘We don’t have enough money to when they drop the vehicle off, you’re cover payroll. What do you want to do about setting yourself up to lose.” this?’ Because you never paid attention to Another tip Anderson shared is that it is Collision Advice’s Mike Anderson talked that, now all of a sudden you’re in trouble.” beneficial to have a team of people working shop production and progress at WMABA’s Anderson observed that when he was on a vehicle. recent all-day educational event. a shop owner, the vast majority of shops in “Those days of one person fixing a his area were either involved in Direct vehicle from start to finish have gone by the Repair Programs or OEM-certified. He said the thriving shop of the wayside,” he said. future is going to be a mixture of both, and he predicts that at least Later, he told the crowd about the “30-20-10” rule, an two manufacturers will roll out their own insurance companies within estimate tactic that allows shop owners to increase their gross the next 18 months. annual profit by up to three to five percent. The average shop in the “If you want to thrive in the future and not just survive, you must Maryland area makes a 43 percent gross annual profit, but shops be OEM-certified, hands down.” that keep their estimates at 30 percent for body, frame and Anderson discussed the importance of scanning vehicles and mechanical labor, 20 percent for paint labor and 10 percent parts said that insurance companies refusing to pay for scans does not wind up making at least a 46 to 48 percent gross profit unloaded. “Your estimators have to be focused in on how to write that estimate.” remove the liability from the shop. Utilizing scanning technology
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An association mainstay returns.
BY NICK FERNANDES
Anderson also provided a tip on hiring employees, stating that it is piece of equipment that removes static electricity from paint finishes. better to hire someone for their attitude rather than their skills. He (More information is available at stat-gun.com.) reasoned that you can teach an employee a skill, but you can’t teach Pro-Stat LLC will soon be launching a new US model of the Statthem how to show up on time and have a good work ethic. He Gun product, also called Pro-Stat, which will be exclusively available for mentioned that many shops hire a good technician but wind up having to rental initially through a selection of distributors that are members of the fire that person for showing up late or talking on the phone during their RDA (Refinish Distributors Alliance) network. Anderson is quite a fan of shift. the original Stat-Gun and the new Pro-Stat version. “Hire them for the attitude and then teach the skill.” “As a former shop owner and a current industry consultant, I am Additionally, he stressed the importance of after-hours training for constantly being asked to endorse a variety of companies’ products and all employees, which he used to do at his shops. services; however, I am always hesitant, as I don’t want to get complaint “If someone worked in my wash rack but they wanted to be a body calls if a product or service disappoints someone. But there are a few man, painter or estimator, once a month they had a chance to stay after products that I do not hesitate to endorse, and one of those is the Statand they could learn how to do these things. You have to have afterGun! This product is an absolute game changer! I currently have over hours training. You can’t try to teach your people in the middle of the 100 of my personal clients utilizing this incredible piece of equipment, day.” and to quote them, ‘We have seen an approximate 40-50 percent Jake Rodenroth, director of client services for Collision Diagnostic reduction in our buffing.’” (Pro-Stat inquiries/orders can be directed to Services, added to the day of education with a presentation on scanning claire@static-solutions.com or info@static-solutions.com.) (including an overview of his company’s product, the asTech interface) To conclude the WMABA event, Anderson reported the results of and a host of related topics. Rodenroth discussed properly serving the the most recent “Who Pays for What?” survey conducted by Collision millennial customer – a vehicle owner who is unlike any other. Advice and CRASH Network. “They’re not intimidated by technology,” Rodenroth explained. “We’re just sharing data with you so you can understand how “They’re not afraid to download the Hyundai other shops are getting paid. One survey app and run a diagnostic check on their vehicle question showed that 81 percent of shops get in your parking lot.” paid for materials with the multiplier method, He also explored the concept of having and 19 percent use an invoicing system,” OEM service information in your shop, Anderson explained. “The surveys also showed mentioning that only one of six facilities he that shops who use the invoicing system wind recently visited in the Detroit area were up getting paid more for materials. Additionally, consistently using the manufacturer information 43 percent of shops said they were paid to available to them. protect the vehicle tier components during the “There are certain circumstances that repair process…The main reason why shops seem minor, and it seems like we’ve done them don’t get paid is because they have not asked for years, that most shops wouldn’t research.” the insurer, and the second reason is because One intriguing example he gave was a they thought it was included with the labor 2011 Volkswagen Touareg, in which the operations.” manufacturer stated in their OEM repair For more information on Collision Advice, procedures that you may have to remove the visit collisionadvice.com. More information on Jake Rodenroth of Collision Diagnostic windshield to replace a fender – something that Collision Diagnostic Services is available at Services shed light on the importance of techs simply wouldn’t know to do without astech.com. H&D following OEM procedures. reading the manuals. Rodenroth also mentioned that when Executive Director’s Thoughts explaining these things to insurance companies, the shops have to look beyond the position statements. Mike is extremely generous with himself and the information he's They have to inform the insurers of the accident avoidance components compiled through extensive research and the self-paid survey tools he's or features that are located in the area of impact. offered up at no cost to the industry. What I cannot fathom is why more “When you’re trying to explain to an insurer why you need to do a people don't take advantage of his offers of help, training, mentorship, facilitation and a crazy assortment of documentation that makes any scan, show them what components are involved.” head spin. You have absolutely nothing to lose by paying attention and The Waldorf gathering also featured representatives of the UK reviewing the recommendations for the betterment of your business. company Static Solutions, who traveled from overseas to Maryland to - Jordan Hendler join Anderson in showcasing Pro-Stat LLC, a new US business based in Rockledge, FL. Static Solutions is best known for the Stat-Gun, a special April 2017
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Porsche Towson 700 Kenilworth Drive Towson, MD 855-873-8619 Fax 410-296-4852 porschetowson.com
Checkered Flag Porsche 2865 Virginia Beach Boulevard Virginia Beach, VA 757-687-3483 Fax 757-687-3490 checkered-flag.porschedealer.com
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INDUSTRY PULSE
©istockphoto.com/art12321r
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WOW!
DEAR HAMMER & DOLLY: I’m writing to express my shock and disappointment in the relatively low attendance for my recent all-day WMABA presentation in Waldorf, MD. There was a time when a meeting or educational event hosted by the Washington Metropolitan Auto Body Association would draw more than 100 people at a bare minimum, but I have seen active attendance and participation in this part of the country dwindle in the past several years. I can tell you that this decrease in member involvement has nothing to do with the association, who work extremely hard to provide content that helps shops stay on top of what’s going on out there. So what is going on back home with my old friends in Virginia, Maryland, DC and Delaware? Is it a change in attitude about implementing new things into our business? Are you guys simply too busy to attend classes or meetings? I really want to know, because what I saw here a few weeks ago was pretty scary. Through my work with Collision Advice, I have the privilege of traveling more than 300 days each year and presenting to shops all over the United States and Canada. Thanks to these trips, I’ve become aware of two indisputable facts. First, the areas in this country that have the highest Labor Rates and see their shops get paid and reimbursed from
April 2017
insurers most often also have the largest and most active auto body associations. Second, these areas only have a fraction of the MIKE ANDERSON total number of shops that the WMABA region has, but the seminars I host in these places are packed. I’m not suggesting that my presentations are the key to these shops’ success, but I’m saying that an active local industry that takes the time to attend the seminars and other events made available to them often has a stronger presence in their market than one that can’t be bothered to show up. There is a true connection here, folks. It is very important to me that everyone reading this understands that I’m not writing this letter to criticize or lecture anyone. I grew up and built my career in the WMABA region, and you’re all family to me. If you go to a family gathering and run into a cousin you haven’t seen in a few years and notice that she’s pale and has lost quite a few pounds, wouldn’t you be concerned for her? That’s exactly how I feel when I look at my “Who Pays for What?” survey results and see that the Labor Rate in this area basically hasn’t moved since I sold my shops seven years ago and that you guys have one of the lowest reimbursement rates of any region in the country. I want to help my family – the shops and other collision industry professionals in the WMABA community – stay healthy and happy. In order to do that, you need to get behind your association and support it. You also need to make every effort to attend the education and training events that WMABA hosts throughout the year. You will not find a more dedicated executive director than Jordan Hendler. Our community in the Washington Metropolitan area is lucky to have her, but she can’t do it alone. This industry is not going to get any easier, and it’s going to take all of us working and learning together to keep things moving in a positive, productive and profitable direction. If there is anything I can ever do to assist, support and encourage the members of my automotive family, please let me know. Anyone reading this is welcome to contact me at mike@collisionadvice.com. H&D
Sincerely, Mike Anderson Collision Advice
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It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers. Ourisman Honda 3371 Ft. Meade Rd. Laurel, MD 20724 Direct: 301-498-6050 Fax: 301-498-0157 www.laurelhonda.com
Honda of Tysons Corner 1580 Spring Hill Rd. Vienna, VA 22182 Direct: 703-749-6652 FAX: 703-821-4229 www.hondatysonscorner.com E-mail: sebastian.venegas@hondaoftysonscorner.com
Miller Honda 3985 Valley Pike Winchester, VA 22602 Direct: 800-296-5020 Direct Local: 540-868-9916 Fax: 540-869-1074 E-mail: bmorgan@drivemiller.com
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Nu Car Mazda 172 North Dupont Hwy. New Castle, DE 19720 Toll Free: 800-346-5283 Fax: 302-322-7135
Ourisman Mazda of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Phone: 855-417-4511 Fax: 240-499-2488 e-mail: rockvilleparts@ourismanautomotive.com www.ourismanmazdaofrockville.com
Fitzgerald Mazda of Annapolis 1930 West Street Annapolis, MD 21401 Toll Free: 866-280-8022 Phone: 410-224-4636 Fax: 410-224-4264
Fitzgerald Mazda 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax 877-696-1841 E-mail parts@fitzmall.com www.fitzparts.com
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www.fitzmall.com
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Alexandria Volkswagen 107 West Glebe Rd. Alexandria, VA 22305 703-684-7007 Fax: 703-684-4138 e-mail: parts@alexandriavw.com
Karen Radley Volkswagen 14700 Jefferson Davis Hwy. Woodbridge, VA 22191 703-550-0205 Fax: 703-643-0081
Ourisman Volkswagen of Bethesda 5415 Butler Road Bethesda,MD 20816 301-652-2452 Fax: 301-652-2589
Checkered Flag Volkswagen 3025 Virginia Beach Blvd Virginia Beach, VA 23452 Parts Direct: 757-687-3465 757-490-1111 Fax: 757-687-3514
Fitzgerald Volkswagen 114 Baughmans Lane Frederick, MD 21702 Toll Free: 800-545-4745 Fax: 877-696-1841
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e-mail: parts@fitzmall.com www.fitzparts.com
Ourisman Volkswagen of Rockville 801 Rockville Pike Rockville, MD 20852 Parts Direct: 301-340-7668 Toll Free: 855-417-4511 Fax: 240-499-2488
King Volkswagen 979 North Frederick Ave. Gaithersburg, MD 20879 Parts Direct: 240-403-2300 Fax:240-403-2398
e-mail: rockvilleparts@ourismanautomotive.com www.ourismanvolkswagenofrockville.com
e-mail: parts@vwking.com www.vwking.com
Fitzgerald Volkswagen of Annapolis 34 Hudson Street Annapolis, MD 21401 Phone: 410-224-4636 Fax: 410-224-4264 www.fitzmall.com
Ourisman Volkswagen of Laurel 3371 Ft. Meade Rd. Laurel, MD 20724 Phone: 301-498-6050 Fax: 301-498-0157 www.laurelvolkswagen.com
e-mail: vwwholesale@ourisman.co
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ASK
MIKE
“What Do I Do When an Insurer Won’t Pay Me for What I Want or Need?” For our newest regular feature, we welcome industry legend
and former Virginia-based shop owner Mike Anderson (Collision
Advice) to discuss some of the collision repair community’s biggest questions and concerns. This month, we tackle the huge topic of insurers refusing to fully compensate a shop for the services it
provides. We also dive into some additional (but related) subjects as the conversation carries on. We at Hammer & Dolly hope you find
this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.
Hammer & Dolly: Let’s say someone stood up in one of your seminars and asked you, ‘What do I do when an insurance
carrier won’t pay me for what I want or need?’ That’s a pretty big order to fill; do you care to give it a try?
Mike Anderson: Sure! The first thing you need to do if you’re a shop
Proceeds and you take it to court. However, some states will not reimburse you your legal fees. Every state is going to vary.
Understand that while you may win the battle, you may lose the war in the long term. I’m not discouraging people from doing this,
because everybody has to make the best business decisions for
themselves. But if you go to court, understand that they’re probably going to start steering against you very heavily. You may lose; they may have deep pockets where they can drag it on forever. I’ve
known people who’ve gone to court and won and done very well, and I’ve known other people who’ve gone to court and lost. There are pros and cons to that. In my mind, that might be a last resort. Obviously, trying to go up the chain of command at the
insurance company would be the first thing to try. The second option would be to try to utilize the arbitration clause. There are companies that will help you to do that.
in this kind of situation is make sure you’re prepared in advance. You
H&D: When we’ve talked to shops over the years on insurer
advance before the insurer ever comes out, and then you present
the customer as the last resort. Based on your experiences as a
need to make sure you have all your documentation prepared in
that documentation to them. If they say ‘no,’ you have a couple of options. The first option is to go up the chain of command to their
supervisor to see if you can appeal to them. At that point, you either
get a ‘yes’ or a ‘no.’ A second option is to make a business decision
payment issues, they have traditionally viewed balance billing former shop owner and on feedback you’ve received from the
facilities you consult with on a regular basis, what do you see as the benefits and disadvantages of this practice?
to do the items that won’t be paid for for free. Another option is to
MA: When I owned my shops, balance billing was my first option. It
somewhere else, or you can do the repair and educate the consumer
it to the customer and how you prepare them for it. When I had my
refuse the repair and tell the customer they have to take it
about why you need to do what you do and charge them the
difference.
Most states have something called an arbitration clause, which
is where an arbitrator comes out to the shop and makes a ruling that
the shop and insurance carrier agree to abide by. You also can take
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legal action where you can get the customer to do an Assignment of
April 2017
always worked well for me. I think it comes down to how you present shops, I had a letter that we gave to the customers at the front end. I
would present it to the insurance company as, ‘This is what I need to
be paid for. If you don’t want to pay for it, let’s just agree to disagree.’ I would charge the customer the difference and move on to the next
one. What I will say is that you don’t want to cut your nose off to spite
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Insights and advice from an industry mentor.
Do you have a question for Mike? Contact Hammer & Dolly Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.
your face. Some estimates come back with a $10,000 difference, and some
estimates come back with a $50 difference. There are some people who will fight for every penny no matter how much the difference is. I did that a lot in my life, and I ultimately realized I was wrong to do so. There’s a saying – ‘Do you want to be right, or do you want to be happy?’ I was trying to be right all the time, and I was making myself miserable. At the end of the day, you have to see what you can live with and what you can’t live with.
H&D: We’ve heard from a lot of shops that insurers are not
paying for pre- and post-repair scanning procedures. We’ve
even heard that some carriers are going as far as saying that the policies they’re selling don’t cover these procedures.
MA: If someone from an insurance company told me that, I would
strongly disagree. If their actuaries did not do the proper research to assess what to charge for a premium for that vehicle, then
shame on them. When it comes to safety, there’s no room for
negotiations. We have a moral obligation to do the right thing.
You either get paid to do it, do it for free or charge the customer. H&D
Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).
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WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it. You want the best part for a Toyota, but you’ve got to know when and how much. Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”
ToyotaPartsAndService.com
©2014 Toyota Motor Sales, U.S.A., Inc.
For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Alexandria Toyota 3750 Jefferson Davis Highway Alexandria, VA 22305 Toll Free: 800-766-9767 Phone: 703-836-8476 Fax: 703-684-3468 www.alexandriatoyota.com
Antwerpen Toyota 12420 Auto Drive Clarksville, MD 21029 Phone: 410-988-9272 Fax: 443-539-4022 darnold@antwerpenauto.com
Koons Tysons Toyota 8610 Leesburg Pike Vienna, VA 22182 Phone: 703-790-8310 Fax: 703-356-9081 www.koons.com
Checkered Flag Toyota 5301 Virginia Beach Boulevard Virginia Beach, VA 23462 PH: 757-687-3443 FAX: 757-687-3437 www.checkeredflag.com
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Ourisman Fairfax Toyota 10441 Lee Highway Fairfax, VA 22030 Toll Free: 800-626-2236 Direct: 703-273-2236 Fax: 703-385-8411 fairfaxparts@ourismanva.com www.ourismanva.com
Younger Toyota 1935 Dual Highway Hagerstown, MD 21740 Phone: 800-296-1190 Fax: 301-733-5465
Koons Toyota Annapolis 1107 West Street Annapolis,MD 21401 Phone:(800)262-3330 Fax:(410)280-6361
dthompson@youngertoyota.com
roy.easter@koons.com
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GENUINE NISSAN PARTS
MAKE ALL THE DIFFERENCE.
Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts. Contact these Nissan dealers for all your parts needs: Passport Nissan 5000 Auth Way Suitland, MD 20746 Phone: 301-423-6930 Fax: 301-423-2965
Sheehy Nissan of Manassas 9010 Liberia Ave Manassas, VA 20110 Toll Free: 800-969-4778 Local Direct: 703-361-0377 Fax: 703-361-5165 martinfisher@sheehy.com
For Genuine Subaru Body Parts, contact these Authorized Subaru Dealers. Wilkins Subaru 6913 Ritchie Hwy #2, Glen Burnie, MD 21061 410-689-8066 Fax: 410-689-8008 subparts@wilkinsautomotive.com www.wilkinssubaru.com
Fitzgerald Lakeforest Subaru 905 North Frederick Ave., Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
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Fresh perspectives on shop improvement.
GUEST
FEATURE
BY KEITH MANICH
DIRECTOR OF COLLISION SERVICES, AUTOMOTIVE TRAINING INSTITUTE (ATI)
BUILDING A PRODUCTION COMPLIANCE MODEL We tend to spend a lot of time contemplating what to do next to improve our businesses without looking at what is happening now. What can we do to make things move more efficiently? How can we improve productivity, capitalizing on every potential business possibility we encounter daily? Have we identified every opportunity on every job that we have within the store? Have our people completed everything that they have the potential of doing? Has every task been achieved properly? As we look at our daily activities around the store, we leave about 30 percent of our time, effort and potential on the table. If you think about that further (using a 10-car-per-week store), that could be an additional three closed ROs per week. You can do the math beyond that, but three cars would be a nice addition to the billed labor hours and overall profitability for most stores. Drilling down a bit further into this efficiency thought process, what if you were able to improve your estimating skills by 30 percent? For an average RO of 19 hours, that would be an improvement of 5.7 hours. There are so many opportunities in electronics, vehicle construction, fasteners and even pricing your materials properly. Are we really looking at all aspects of the repair process to make sure that each opportunity is identified and then documented so that we can get paid for it? Let’s look at another area where improvement can be incrementally advanced with additional focus: Tech production. How efficiently are your technicians operating? Do you measure? Do you know the formula? What are the areas in which you might be able to examine, measure and change processes that would help them to be more productive? What should the target for productivity be? How do you identify what each technician should be producing, and do you share your business and production expectations with them? Do you tell them
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what their productivity means to the business? Organizing the entire repair facility is extremely important in making sure that everything that can be done to improve customer service, efficiency, pricing and productivity has been done. This starts with properly identifying all the tasks that need to be completed and who is accountable for their completion. The shop should be broken into segments to make the analysis and the task identification easier to compile into lists. Pre-production is an area that has conflict “built in” for which resolution has to be quick and well documented to allow for clear decisions that are clearly justifiable. To better define what this means, the estimating or blueprinting processes are typically where “friction” points will exist because of thirdparty payers. It can be caused by pricing, skill and knowledge gaps; for a variety of reasons, resolution has to occur. Let’s assume for the purposes of this article that all the typical claim information, documentation and contact steps have been made, and the vehicle is at the store with a pay assignment or a clear contract of repair with the customer. Here are the steps required to take place to get the vehicle into production: The vehicle has to be scheduled in for the estimate (or if not mobile, brought into the bay for disassembly). Repair authorizations and data acquisition authorizations need to be signed by the vehicle owner and put in the hard file. All the options must be properly identified to establish the “estimating” requirements by vehicle construction and design, including the testing protocols necessary to establish preand post-accident safety system readiness. A data search must be conducted to identify any particular repair scenarios
that must be followed specific to the platform requirements, e.g., steels, plastics and other build data. The condition of the vehicle has to be established to ensure that proper measures are taken to restore it to (or make it better than) its prior condition in accordance with the payer’s obligation to the vehicle owner. All electronic pre-sets must be saved either electronically or manually to ensure that the owner retains their presets. Parts requirements agreed to by the vehicle owner must be initialed and put in the hard file relative to aftermarket or other non-OEM parts. The estimator/blueprinter has to cycle the ignition whenever possible to conduct the “seven-second burn” to check for dashboard-indicated fault codes for vehicle safety systems. This is in addition to the diagnostic link tests, which check for system continuity. Begin disassembly processes. Identify parts that are to be saved and those that will be replaced. Establish repair times for the damaged repairable nonstructural areas of the vehicle. Establish repair times for repairable structural areas of the vehicle. Determine removal and replacement requirements for glass, including adequate dry/cure times for adhesives used in replacement required by FMVSS. Identify refinish requirements for undamaged adjacent panels where applicable. Identify undamaged part removal and replacement requirements to accommodate blending procedures as
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Conquest your Mitsubishi parts needs!
Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems. Ultra-Conquest Collision Parts Program Highlights: • • • •
Discounted prices on quality new and unblemished OEM parts Automated price and part selection in collision estimating systems High parts availability Delivery to most major U.S. cities within 24 hours
• Available through all participating Northeastern area Mitsubishi dealers • Includes the majority of key collision components for select popular models • We can meet or beat aftermarket prices!
To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer. For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers. Fitzgerald Mitsubishi 1930 West Street Annapolis, MD 21401 Direct: 410-224-4636 Fax: 410-224-4264 E-mail: adamsf@fitzmall.com
Younger Mitsubishi 1945 Dual Highway Hagerstown, MD 21740 Direct: 800-296-1190 Fax: 301-733-5465 www.youngermitsubishi.com
Buy Genuine Mitsubishi Parts and get the perfect fit at the perfect price. 10% off on all parts orders when you mention this ad.
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GUEST FEATURE
necessary. Determine the length of time necessary to obtain parts. Determine the length of time necessary for repairs. (This is from the start of the repair to the conclusion of the repair.) Contact vendor(s) to place parts order(s). Receive parts and validate part order list against parts received to verify part numbers and part types. Mirror match parts against those that have been identified for replacement. Create second parts order for
corrections when necessary, including accounting requirements. Identify billable hours for vehicle and day/date for production processing. Place vehicle into production rotation. During production, create supplemental billing (and accompanying parts orders or labor add orders) when needed. Contact customer and insurer, as needed, to validate supplemental billing for review, verification or approval. Update file documentation.
All the individual tasks associated with getting the car into production may or may not have been listed. There may be subset tasks that will be identified as well. This will depend on the level of detail that each individual store owner might place on particular tasks associated with a process. But as can be seen in this example, the level of detail is important in that the store owner will be requiring someone to complete these tasks and holding them accountable for doing so. Going back to the earlier point about potential “friction� caused within a particular job assignment, estimating and blueprinting have the most areas where the decisions can be subjective in some cases. However, subjectivity can be reduced significantly with documentation. Some in the industry say that the strategy should be that we need to negotiate in every case. That is not a strategy; that would be a task. The strategy would be to build consensus through properly preparing, presenting and discussing the necessary documentation each time an estimate or blueprint is created. The more thorough and complete the documentation, the narrower the focus of the discussion becomes. This process significantly reduces that element of friction through information. As we develop the processes and procedures for the store, the long-term strategy should always be the focus of the tasks associated with the planning and execution for all activities necessary for repairing the vehicle. This allows the store owner to build a more predictive production model, which helps them be able to forecast what their daily, weekly and monthly performance metrics should be. This is where we begin to take the requirements and form them into our standard operating procedures (SOP) that support the performance metrics. The task lists are the starting point. Job descriptions are then created that tell the employees exactly what their roles are in the execution of the tasks, and they begin to get an indication of timeframes and performance requirements which are more clearly defined in the SOP and accountability measurements. The SOP then provides the detailed, step-by-step instructions in the execution of the tasks. Some key takeaways would be:
Have all the required steps and tasks been identified for the process that is being built? Does the job description being created for this process provide the detail necessary for the employee to be able to complete the process as expected? If not, what training will be required to expand the employee’s skill set so that their competency is improved to the
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necessary level of performance? Should that additional training be internal or external, and what is the cost and potential return on investment (ROI) for the training activity? Do the Standard Operating Procedures clearly define all steps, performance requirements and timeframes necessary to meet production requirements? If followed, will the task lists, job descriptions and SOPs provide a more efficient production flow resulting in improved production efficiency and profitability? If not, what additional steps need to be considered to make the SOP adequate for the production needs? If followed, are the steps adequate for the staff to perform to their individual performance expectations? What review process has been established so that the process can be audited for compliance and corrective action as needed?
Applying the ideas explored in this piece will help your facility become a more productive and efficient machine. Please feel free to contact me if you have any questions or comments regarding anything discussed in this article. H&D
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Keith Manich began his journey through the collision repair industry as a body technician and painter over 30 years ago, progressing through management, insurance claims, automotive engineering, testing and training and technical oversight at an industry MSO. He held roles in senior management in training and research at one of the nation’s premier collision research facilities as well as traveling worldwide in his role as the center vice president. As a trainer and coach in damage analysis and damage blueprinting, he has also been responsible for developing SOPs, financial impact models, job aids and repair personnel job descriptions for collision repairers. He brings unique skill sets to the Automotive Training Institute as well as the industry. He regularly participates at collision industry events, delivering immediately impactful information for collision repairers. His passion for repair process efficiencies, oversight of established processes and the designing and implementation of new repair and production procedures are never ending. He has an unquenchable thirst for knowledge which has helped to provide decades of properly repaired vehicles for their owners. He works with and is an active participant in many industry organizations such as CIC, SCRS, ASA, I-CAR, AMI and WMABA (just to name a few), and he has been a guest speaker at SEMA, NACE, AASP and other industry conventions. His productivity tips can be seen in Hammer & Dolly, where he is a featured writer. He can be reached at kmanich@autotraining.net.
Executive Director’s Thoughts All the items Keith outlined are keys for creating processes that reduce the amount of management necessary for production to move more efficiently. The same is true for all parts of the operation. If you're struggling with "communication issues" in the shop, then maybe putting processes in writing is the key to freedom! - Jordan Hendler
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Unsurpassed Quality. Genuine Hyundai Parts.
HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE.
SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS.
TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR THE WHOLESALE
PARTS SPECIALIST AT THESE FINE DEALERS. Buy Hyundai Parts.
For Genuine Hyundai parts, contact these Authorized Hyundai Dealers. Fairfax Hyundai 10925 Fairfax Blvd. Fairfax, VA 22030 Phone: 703-273-5188 FAX: 703-352-3115 E-mail: parts@fairfaxhyundaiinc.com
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Fitzgerald Lakeforest Hyundai 905 North Frederick Ave. Gaithersburg, MD 20879 Phone: 301-670-4881 Fax: 301-670-1595
April 2017
Malloy Hyundai 1880 Opitz Blvd. Woodbridge, VA 22191 Parts Direct: 703-490-8263 Fax: 703-490-3864 E-mail: hmkparts@aol.com
Checkered Flag Hyundai 3033 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: 757-687-3463 Fax: 757-687-3468 hyundai.checkeredflag.com
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Getting to know the industry pros who work on your behalf.
MEET THE
BOARD BY NICK FERNANDES
ASHLEY KRUGER
“I take a tremendous amount of pride in the fact that our family has done this for many generations and that it has been passed down. I want to make sure that reputation is around for a while.” - Ashley Kruger
WMABA Board member Ashley Kruger (Baugh Auto Body, Richmond, VA) did not always want to work in a body shop, but her career transition has led her to become dedicated to giving customers the best auto repair experience possible. Before becoming the marketing and customer service coordinator of the family business, Kruger studied Mass Communications in college and started working in her field shortly after graduating. But being laid off from her job during the Recession of 2008 gave her the opportunity to begin handling marketing and customer service for the shop her father, Gerry Baugh, has owned since 1981. “I then started estimating, taking I-CAR classes and getting more involved in the industry that way,” she recalls. Kruger says that as a family-owned business, the shop is able to give customers the attention that they may not get somewhere else. “Our motto here is that we treat our customers like we would our own family. As an independent family shop, we have the ability to really get to know our customers, which a large multi-shop operator might not have the ability to do because they have set guidelines.” As Kruger strives to provide customers with excellent service, she often gets frustrated over receiving low-quality parts for car repairs. In November 2016, Baugh Auto Body received a rusty suspension to be used on the repair of a two-year-old car. Baugh contacted local CBS affiliate WTVR, who reported the issue to viewers (“WMABA Shop Featured in CBS News Report, H&D January 2017). “We were just getting aggravated because we were getting a lot of subpar parts coming in from some of these salvage organizations.” Although the shop received many complaints from insurance companies and a
rebuttal from the Automotive Recyclers Association, the news coverage created an even more positive relationship between the shop and its customers. “These are real issues that we face every day. For me, it really helped open up the dialogue with our customers and made them aware of what parts are going on their vehicles.” In Kruger’s view, cars are becoming more complex and difficult to repair, which requires them to use more advanced repair methods. “The vehicles that we’re repairing today are not the same as when my dad and grandfather got started back in the ’60s and ’70s. They have a lot of technology and different materials.” However, she believes that insurance companies’ failure to pay for necessary services often makes it difficult for shops like Baugh Auto Body to fix cars properly. “New information from the OEMs and from I-CAR has shown us how to properly repair these vehicles and make sure that we have the training, but then I feel like we’re at a crossroads because some of the insurance companies choose to ignore it.” With Baugh Auto Body already a longtime member of WMABA, Executive Director Jordan Hendler approached Kruger in the fall and asked her if she was interested in joining the Board. “Jordan, I think, wanted some younger representation to come in.” Above all, Kruger is pleased to be the third generation at the shop and strives to make the company successful for many more years. “I take a tremendous amount of pride in the fact that our family has done this for many generations and that it has been passed down. I want to make sure that reputation is around for a while.” H&D
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Mark Schaech, Jr.
(410) 358-5155 mark@marksbodyshop.com
PRESIDENT’S
MESSAGE A SHOUTOUT TO MIKE ANDERSON I have to give a big THANK YOU to Mike Anderson of Collision Advice for presenting to our membership a few weeks back in Waldorf, MD. The attendees got to see true passion and enthusiasm for this industry. Mike, along with Jake Rodenroth of Collision Diagnostic Services, gave an inspiring presentation on the state of our industry and how to prepare for what’s around the corner. As a shop owner, I can’t tell you how important it is to get out of your store and become active in our association. I often hear my fellow shop owners complaining about insurers and bad facilities down the street, but if we are not willing to educate ourselves, then we only have ourselves to blame for these problems continuing. It is more competitive than ever out there, and we cannot sit back
and simply hope for the best. We need to plan for tomorrow, put SOPs in place to improve our businesses and work to ensure that these ideas are followed through and executed to the fullest degree. It is up to us to build our industry’s future. LET’S GO! H&D
WE NEED YOUR LEGISLATIVE CONTRIBUTION! I appreciate WMABA working on my behalf at the state capitol(s)! Here is my contribution to the legislative efforts.
P.O. Box 3157 • Mechanicsville, VA 23116
Name: ______________________________________Company: __________________________________ Address: __________________________________________________________________________________ City:____________________________________________State: ______________________Zip: ________ Phone:
______________________________Email:
Donation Amount: Check Enclosed
$50
$100
____________________________________________ $500
Other ________________
Credit Card (Visa, Amex, MC)# __________________________________________________________ Exp: ________
Name on Card: ______________________________Signature: __________________________________ 44
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Chesapeake Automotive Equipment 28 Crashmax Equipment ..................23 DJS Fabrications ..........................21 Empire Auto Parts ........................41 Ford Group ..................................18 Future Cure ..................................40 GM Parts Group............................22
Honda Group ................................31
Hyundai Group..............................42 Koons Ford ..................................23 Malloy Hyundai ............................4
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Mitsubishi Group ..........................39 Mopar Group ..................................39
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O’Donnell Honda ..........................28 Packer Norris Parts ......................19
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Nod up, nod down.
That’s not what we call parts certification. Maybe we should forget about testing replacement parts completely. Skip developing those time-consuming strict standards. Get rid of our testing labs. And hand out pink slips to all our trained technicians. Maybe we should just call parts “certified”—and leave it at that. What could be easier? No, we can’t do that. We’ve always been sticklers for quality. Doing things the right way is in our DNA. We can’t fake it. It’s why CAPA invented crash part testing and certification over 29 years ago. And why we’ve become the gold standard for quality replacement parts. So we’ll keep testing to identify high quality parts and leave the rest for others to “certify.” Because we aren’t the only ones who care about quality. So do you.
TM
If it isn’t CAPA Certified, it isn’t a genuine replacement part. capacertified.org
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