Hammer & Dolly August 2021 by Thomas Greco Publishing, Inc.

One Rate Doesn’t Fit All

August 2021 Volume 14, No. 8 $5.95

Making Your Future Bright

Big Mistakes and Lessons Learned

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CONTENTS August 2021

26 COVER STORY BY JOEL GAUSTEN

LIVE AND (FINALLY!) IN PERSON: A PREVIEW OF COLLISION P.R.E.P. AND NORTHEAST® 2021 WMABA and AASP/NJ are back with the nation’s biggest regional event.

LOCAL NEWS 10 ONE PRICE DOESN’T FIT ALL: COLLISION P.R.E.P. DIVES INTO DIFFERENTIATED LABOR RATES

BY JOEL GAUSTEN

A realistic view into the right charges.

INDUSTRY PULSE 14 BUSINESS AFTER COVID-19

BY JOHN A. WALCZUK, ZB NEGOTIATIONS

Addressing pandemic-era insurer practices.

WMABA FEATURE

20 GIVING THE AFTERMARKET ITS DUE: A TOOL & EQUIPMENT REALITY CHECK – PART FOUR

BY JOEL GAUSTEN

A twist on a common term.

22 WMABA GOLF OUTING: SAVE THE DATE!

OCTOBER 13, 2021 • HERITAGE HUNT GOLF & COUNTRY CLUB GAINESVILLE, VA

INDUSTRY ADVICE: ASK MIKE

32 WHAT WERE YOUR BIGGEST MISTAKES AND LESSONS LEARNED AS A SHOP OWNER?

An honest, heartfelt conversation with an industry pro.

DEPARTMENTS

6 President’s Message 7 WMABA Member Application 8 Executive Director’s Message 17 WMABA Sponsors 34 Advertisers’ Index August 2021

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August 2021

PRESIDENT’S

Steven Krieps (304) 755-1146 skrieps@live.com

MESSAGE MOVING FORWARD Collision repairers have had a rough go lately. Thanks to COVID-19, we all had to implement cleaning protocols to protect ourselves and our customers as per CDC guidelines, and we had to figure out how to deal with insurers’ touchless claim processes. On top of that, the auto industry has not slowed down with technology and innovation. So, where do we go from here? Moving forward, repairers (as always) need to learn and adapt. Training/education is going to be the most important aspect of our continued success, but it may not be what you think. How to handle employees’ mental stress amidst the pandemic may not be on your radar. We all know that it’s getting harder and harder to find good “team” members (not

WMABA OFFICERS

PRESIDENT Steve Krieps skrieps@live.com 304-755-1146 VICE PRESIDENT Rodney Bolton rbolton@aacps.org 443-386-0086 TREASURER Kris Burton kris@rosslynautobody.com 703-820-1800 SECRETARY Phil Rice phil@ricewoods.com 540-846-6617 IMMEDIATE PAST PRESIDENT Torchy Chandler Torchy Chandler torchy.chandler@gmail.com 410-309-2242

BOARD OF DIRECTORS

Don Beaver (donbeaver3551@gmail.com) 443-235-6668

Bill Hawkins (hawkinswilliamjr@gmail.com) 510-915-2283

Barry Dorn (bdorn@dornsbodyandpaint.com) 804-746-3928

John Shoemaker (john.a.shoemaker@basf.com) 248-763-4375

ADMINISTRATION

EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116

August 2021

just someone to fill a position), and it costs a lot of time and money to train someone. Costs are increasing, parts suppliers are getting jammed…on and on. It may be a shameless plug, but get involved with your local or national associations to receive help. Attend industry shows to see a whole new side of training opportunities. WMABA’s Collision P.R.E.P., the Society of Collision Repair Specialists’ (SCRS) Repair Driven Education (RDE) and Collision Hub all offer training options – or you can always get information the hard way. In a tightening economy, a hard lesson can close doors. To help our members, WMABA started our regular “Watercooler chats,” a free resource that allows shop owners and managers to hop online and express concerns and frustrations or get realworld answers to questions (not just scripted, politically correct responses). The organizations I’ve mentioned above exist to help shops. Electric vehicles (EVs), major changes to automotive design, shifts in insurance practices and philosophies, the merging of multi-shop operations (MSOs), the ever-expanding post-repair industry, the Right to Appraisal, Right to Repair, state and federal legislation and the protection of shop/consumer data are just some of the many issues we’re all dealing with in 2021. Get involved and move forward. The old ways of training and education are no longer sufficient to move us into the future. H&D

STAFF PUBLISHER

Thomas Greco thomas@grecopublishing.com

SALES DIRECTOR

Alicia Figurelli alicia@grecopublishing.com

EDITORIAL DIRECTOR

Joel Gausten joel@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Bonillo alana@grecopublishing.com

OFFICE MANAGER

Donna Greco donna@grecopublishing.com

PRODUCTION COORDINATOR

Joe Greco .joe@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 © 2021 Thomas Greco Publishing, Inc. Stock Images courtesy of istockphoto.com.

JOIN ! TODAY August 2021

EXECUTIVE DIRECTOR’S

See you in Secaucus!

MESSAGE

CONNECT AT COLLISION P.R.E.P.: YOUR NEXUS EVENT IS HERE! Who wants to get together again?! I know I certainly do! I attended the April meeting of the Collision Industry Conference and hadn’t realized just how much I missed the connection with our industry until I was in the room. This issue of Hammer & Dolly is all about education – especially our upcoming Collision P.R.E.P. event at the NORTHEAST® Automotive Services Show. We always strive to give you relevant information in each issue of this magazine, yet I have an even higher level of excitement for repairers getting to join us in September. Let’s talk about some of the hurdles you may face and how to address them! •

•

New Jersey. Doesn’t that seem far to go? From my location in Richmond, it’s a pretty smooth five hours, and many of our readership are closer north than I am. There’s no trip more worth taking - and staying on site at, to be immersed in the experience of the education and show. Isn’t it hard to get around up there? It can be, but here’s what you do: Set your GPS for the host hotel or wherever you’re staying. Getting into the parking areas is easy. If, for instance, you’re staying at the Embassy Suites, you park and check in and you’re at the hub of all things for the weekend. That’s the hotel where we will have our classes, and it’s connected to the show for a one-minute walk over to peruse the vendor booths. Many companies come with new product offerings, or you could even catch up with a vendor contact you have or need! You can take an easy taxi or Uber-type service to New York City after the show, too! When it’s all concluded, just hop back in your car and cruise on home. It’s so hard to be away from the shop. This is a problem many participants face with hardship and then frustration. There is a trade off of your most precious commodity and to leave things in others’ hands while you’re away. Plan ahead August 2021

your work schedule so that you can have the weekday away, just like if you want to go on vacation. Let’s plan to leave as the shop closes Thursday and be gone only that one Friday – staying the weekend – and coming back energized and excited to Monday morning! •

I’m not sure I’ll learn that much. That’s a strong feeling many shop owners or managers have, even in their subconscious. We’ve brought you the best industry thought leaders and cutting-edge educators to expand your capacity for issue identification, process improvement and relationship development. There’s no possibility you’re leavin’ without at least 10 things to take action on!

There are so many reasons that could keep you from coming, but I encourage you to consider that there are even more that compel you to come. The past year and a half has taught us to pivot in ways we never imagined, but I also think it taught us it’s never been more important to keep learning, growing and changing for the better. Come and spend time with colleagues, ask your questions, get some answers and be rejuvenated in the exciting future our industry has to offer!

Jordan Hendler

(804) 789-9649 jordanhendler@wmaba.com

August 2021

LOCAL

NEWS ONE PRICE DOESN’T FIT ALL:

COLLISION P.R.E.P. DIVES INTO DIFFERENTIATED LABOR RATES All businesses exist to make a reasonable profit on the services they provide, but how to adequately determine what to charge for them has often been a point of contention within the collision repair industry. As a profession largely dependent on payment from a third party, disagreements regularly arise between repair facilities and auto insurers over what constitutes an appropriate Labor Rate. As a way to bring much-needed direction and clarity to this debate, WMABA recently welcomed Mark Olson of VECO Experts for “Differentiating Labor Rates Based on Certification, Skillset, Tooling and Training,” a virtual presentation as part of the association’s 2021 Collision Professional Repairer Education Program (Collision P.R.E.P.). The Zoom course provided a new perspective by looking beyond the “normal” conditions of today’s repair market and identifying various factors that should be considered when a shop determines a reasonable and realistic rate to charge in its market. Kicking things off, Olson shared – and provided candid answers to – some of the most common questions asked by industry members on social media and elsewhere in regard to Labor Rates: With that out of the way, Olson detailed a number of things

What Can I Charge? “Whatever you need to make a reasonable profit.” What Can I Get Away with Charging? “There’s nothing to get away with.” What Does ABC Insurance Pay? “Who cares!” that shops need to consider when coming up with their Labor Rates. Not surprisingly, a facility’s ability to know its numbers was high on the list. “What was your gross profit last month? If the first [thought] in your mind is, ‘I don’t know what gross profit is,’ you probably don’t have a way to really gauge what your Labor Rate should be;

August 2021

you’re at the mercy of what the ‘market rate’ is. Do you know what your net profit was year over year or quarter over quarter? I know COVID-19 kind of screwed some stuff up, but where are you at this year versus last year?” Naturally, a business’ success in having a grip on its financials is only one piece of an extensive puzzle. In Mark Olson order to gain an even greater sense of what it should be charging, a facility must also take today’s complex vehicles – and its capability and desire to repair them – into account. “What we really need to do is differentiate between a normal car using normal equipment with a normal skillset and vehicles that demand higher levels of training and tooling […] Many shops that were once state of the art are out of business, but nobody’s told them they’re out of business yet. They’re still able to fix cars, but the reality is it’s not going to last forever. It takes money to keep up to date on equipment and training.” So, what do “normal” or “average” mean in the collision repair industry in 2021? As Olson shared, replacing a bumper cover on a 2015 Nissan Altima should probably be considered an average repair these days, while replacing a rocker panel on a Tesla is an above-average procedure. “If you have a sign on your building that says, ‘We work on all makes and models, foreign and domestic,’ you look really average – and you probably are average.” Because not all of today’s collision repairs are equal, he argued that specialization – including OEM-specific certifications and the tooling and training needed to acquire them – reasonably results in higher rates based on the complexity of particular repairs. “Having multiple rates for different tasks makes a lot of sense.” Above all, Olson stressed that the survival of any body shop in the WMABA region or elsewhere is ultimately based on two critical things: Quality and profit. “If you’re making a profit and you have terrible quality, that’s

Making sense of dollars.

BY JOEL GAUSTEN going to be a problem. If you have great quality and you’re not making a profit, that’s also going to be a problem. The bottom line is those are the two KPIs [Key Performance Indicators] you’ve really got to be watching like a hawk.” Of course, many of the points Olson offered in his presentation are moot if a shop is providing discounts to an insurer in exchange for work and is solely charging whatever that carrier is willing to pay. “If you are, you’re agreeing up front to not have a Labor Rate that’s higher.” Olson’s presentation also touched on the Right to Appraisal/ Appraisal Clause, which is a method for first-party claimants to seek a solution to a dispute with an insurer over their vehicle repair without having to pursue litigation. An experienced expert in the Right to Appraisal arena, he advised attendees who are interested in discussing this option with their customers to remember that not all insurance policies offer an Appraisal Clause or include universal language in outlining this provision. “You’ve got to read every policy on every claim every time, even if you’ve read one from last week.” Additionally, he cautioned that a positive outcome to the Appraisal Clause process is not guaranteed and that a Right to Appraisal victory is based on the number included on the final repair bill – even if the shop inadvertently left something off that document.

“I’ve never completely ‘lost,’ but I have actually been severely disappointed in how the umpire ruled on some of them. That’s just how it goes.” WMABA members are strongly urged to view the entire “Differentiating Labor Rates Based on Certification, Skillset, Tooling and Training” video, which features insights and information beyond those featured in this article. The entire presentation is available on-demand in the “MemberVault” section of wmaba.com/collisionprep. H&D

Executive Director’s Thoughts This class was tremendously helpful in dissecting some of the varying factors and ideas that go behind establishing multiple rates for a repair facility. It also talks to what makes an average versus specialized repair and how that can also be a consideration for rate and rate justification, if needed. I also strongly encourage shops to come to Collision P.R.E.P. at NORTHEAST® (page 26) to hear more on the topic of the Right to Appraisal or Appraisal Clause, because it’s a path a consumer can take in the event of disagreement with their insurer. It’s something all shops should hear more about! - Jordan Hendler

August 2021

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August 2021

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August 2021

INDUSTRY

A battle over value.

PULSE

BY JOHN A. WALCZUK

BUSINESS AFTER COVID-19

We are midway through 2021. Looking back over the last 16 months, not only have body shop businesses been impacted as drivers have lessened their normal driving habits, but carriers are totaling vehicles that previously would be repaired. Since March of 2020, insurance carriers have offered settlements that are 20 percent or more below actual cash value (ACV), with trucks often below 30 percent of ACV. To date, only California has informed carriers not to take advantage of vehicle owners in an effort to stem biased settlements. While one can look at the insurance carriers and question the settlement offers, the biggest offender would appear to be the database companies. The greed of the carriers is an issue we are all aware of and is evident on the repair side of the auto body industry. Carriers are unwilling to pay for quality parts or expect to pay minimal hourly Labor Rates for repairs. The largest (and what appears to be the most commonly used) database service is CCC ONE. This company not only provides settlements that in many instances are more than 20 percent off of ACV, but they appear to decide on what an option (or if one) should be reflected in a valuation. This is evident when one provides the carrier information to be given to the database company with a

August 2021

vehicle window sticker, yet only some of the items included appear in the settlement report. Such arbitrary decision-making may not have a significant impact on many vehicles where there are limited options offered. However, one needs to also consider those vehicles where options are abundant and can easily add $25,000 to $75,000 to a window sticker. Exotics are a perfect example where options offered can be plentiful and bring a base car price up significantly. In four recent settlements, this database company provided initial settlement offers that were from $20,000 to $30,000 under the final negotiated settlement. We recently learned that this same database company draws a dollar line as to the options. Ones viewed as preference that are under $750 may not be valued. The excuse given was that these options do not really add resale value. What a surprise to me. This is hard to believe, as the purchaser of any vehicle might find value in said options and they were part of the original purchase price.

Understanding the database company’s role in determining settlement valuations is important, as they are a major contributor to low settlement offers. It is also important to recognize that it appears that once licensed by a state, there is virtually no review or evaluation of changes that a database company might make to its systems – hence it appears that states are also to blame for lowball settlement presentations and find acceptance in annual licensing fees. While we have specifically identified one database company in our example, the three major database providers all have some level of valuation issues. So, we are now midway into 2021, and one can only assume there will be less control exercised by the states. Perhaps the licensing fees will increase, but do not expect any realistic oversight being provided by our legislators. ZB Negotiations will continue to help those who recognize what is happening and can be contacted at (516) 364-0713. H&D

August 2021

WMABA THANKS

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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

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FEATURE GIVING THE AFTERMARKET ITS DUE:

A TOOL & EQUIPMENT REALITY CHECK – PART FOUR It may be time for the collision repair industry to rethink the word “aftermarket.” If you work in the auto body field, “aftermarket” likely inspires more than a few groans and bad memories – and even current scenarios – of an insurer insisting that you use a part that possibly didn’t meet the fit or structural standards of one that came from the auto manufacturer. If you’re someone with experience in mechanical service, it’s likely that “aftermarket” is a far more acceptable term with considerably fewer negative connotations. Now, at a time when scanning, diagnostics and calibrations are blurring the lines between both sides of the fence, it is clear that auto body technicians who are incorporating more mechanical services into their daily operations may need to embrace “aftermarket” more than they ever anticipated. This is due to the presence of aftermarket scan tools that – when utilized properly – can provide the suitable information and technology needed to ensure safe and proper repairs. “To me, I feel as though the baggage with the word ‘aftermarket’ in the industry came with parts, and now it’s being assigned to anything and everything else,” Josh McFarlin, executive vice president of operations for AirPro Diagnostics, observes. “To make an analogy, I think it’s possible to have a lead tech who can probably [handle] an aftermarket part where maybe the fit and finish is a little inferior in some way, shape or form but won’t affect the performance of the vehicle. In that scenario, there may be a lead tech who can work around these issues if they were so inclined. They might be able to make some modifications to the part or something in order to get it to fit. In an aftermarket tool, I think the similarities are there in that if you have an experienced technician who knows what to do with it, then you’re going to get to the result you ultimately need to reach.” These are perhaps strange words to read in Hammer & Dolly, but McFarlin believes that the right aftermarket scan tool in the hands of the right technician could lead to results in line with – or even more consistent than – some of the OEM products currently available in the marketplace. “OEM tools are not bug-free; they get regular updates to resolve issues. What I hear all the time about aftermarket tools is,

August 2021

‘Oh, my gosh! They miss modules, and there’s no way to know,’ but it depends on the tool. I can tell you with the aftermarket tool that I’ve had recent experience with, when I perform an all-systems scan, it reports back a list of every module that responded and every module that didn’t that’s potentially there in that make, model and year. They give you a comprehensive list of everything. It doesn’t just say, ‘Here are the ones that responded’ and leave you to guess about the gaps in the information. If, for instance, it says the ABS module didn’t respond, then any technician in the mechanical space who’s worth paying at this point is going to know that everything has an ABS module on it. That means either the tool wasn’t capable of talking to the module, there’s a problem with the vehicle that is preventing it from talking to the module or there’s a problem with the module that is preventing it from responding. A good technician would figure out why.” Over at Dorn’s Body and Paint in Mechanicsville, VA, owner Barry Dorn has experienced the twists and turns of OEM scan tools firsthand. “There are some OEMs that are spot on; it’s literally ‘plug and play.’ There are some that are very comprehensive. There are others that are more vague, but they’re vague because you’ve already been through the class that goes over the minutiae of the repair.” As with any other developing technology in this industry, the key to success is finding the right people to complete the tasks at hand. With auto body shops now incorporating mechanical services like never before, McFarlin cautions that proper staffing could be an obstacle for many facilities. “The challenge in all of this is figuring out what ‘average’ is. What is the average capability of the aftermarket scan tool, and what’s the average capability of the mechanic back in the collision repair environment? How do either one of those things relate to the average that’s found in the mechanical shop environment? They’re not defined the same way. What’s the average capability of the kid working behind the parts counter at the parts store down the corner who has a scan tool and can come out and check your diagnostic trouble codes [DTCs]? He can fog a mirror; that makes

New procedural perspectives.

BY JOEL GAUSTEN

him average, but that average is different from the average at a dealership.” As a result, shops should avoid the practice of putting a scan tool – aftermarket or otherwise – in the hands of just anyone on the floor. “This notion that there’s an expectation that one person at your shop could be able to use one scan tool to adequately and safely diagnose, repair and calibrate every vehicle that comes through your door is completely unrealistic. I don’t care how ‘above average’ that person is.” As previously discussed in Part Two of this series (in our April 2021 issue), McFarlin described a “Level 3” scan tool as one that results from an OEM taking software found in the hardware of a dealer-level tool and making it available to shops and vehicle owners for paid download (through automaker websites) via the Right to Repair Act. (Additionally, he described “Level 4” tools as OEM-sourced because they rely on data that is made available by OEMs to the Equipment and Tool Institute [ETI] and then licensed from ETI by tool developers.) Although Right to Repair has been an ongoing cause and discussion point in this industry for decades now, misconceptions over exactly what it provides have only escalated. First of all, the belief that it only covers emissions-related or OBD II structural information is an absolute fallacy. In reality, Right to Repair covers everything from airbags and ABS to body control systems and door modules. Despite the far-reaching accessibility to information through Right to Repair, a line in the sand has traditionally been drawn with respect to key programming. However, solutions to this roadblock have begun to appear. Earlier this year, the National Automotive Service Task Force (NASTF) launched the Assisted Immobilizer Reprogramming (AIR) service. According to a NASTF statement, the service “allows a background-checked employee at a repair facility to request a secure, Assisted Immobilizer Reprogramming session with a NASTF Contracted Service Provider.” Additionally, Hammer & Dolly has received reports that a mobile solution is currently under development by providers unrelated to the NASTF initiative. While Right to Repair has surely made it easier for non-dealer facilities to keep several operations in-house, the fact remains that

actually obtaining the necessary information to do so can be a financially daunting proposition. “The cost is often unattainable for everyday shops,” Dorn observes. “If a tool is $10,000 at the dealer level who’s paying franchise fees, you’ll have to spend $15,000 for it because you’re not a franchised dealer. Honestly, I get that. If I’m the OEM and make my own partners pay in some way, then why wouldn’t I expect someone who isn’t a partner to pay for it?” Of course, the money spent on accessing OEM data for scanning has to be made up somewhere – and it’s no secret that the insurance industry is still largely looking the other way in terms of considering scanning a reimbursable operation to insureds. As such, consumers are regularly the ones left paying the bill, thus creating another reason to place the under-indemnification of policyholders under a critical microscope. That is, of course, a conversation for another time. What ultimately matters is that proper scanning, diagnostics and calibrations need to take place – and the right aftermarket scan tools can make this possible when placed in the hands of an experienced and trained diagnostic technician. Look for Part Five of this story in an upcoming issue of Hammer & Dolly. H&D

Executive Director’s Thoughts It’s important to make the distinction between what is considered a mechanical operation and a collision operation. There’s a lot of work being done throughout our industry to raise this awareness with the companies and bodies to share the distinctive differences. In the collision environment, there’s a lot of factors that just aren’t seen in the mechanical field. - Jordan Hendler

August 2021

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August 2021

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August 2021

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August 2021

COVER STORY

LIVE AND (FINALLY!) IN PERSON: A PREVIEW OF

AND 2021 26

August 2021

The days of engaging in our industry solely over computer screens are over.

Finally, after more than 18 months of separation, the national collision repair community is getting back to the networking, education and unity that can only come through in-person gatherings. For many industry members on the East Coast and beyond, the first opportunity to take part in a large auto body-related event will occur this September 10-12 when the 2021 NORTHEAST® Automotive Services Show hits the Meadowlands Exposition Center (MEC) in Secaucus, NJ. Presented by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ), this year’s NORTHEAST will celebrate a long-awaited return to normalcy by providing thousands of attendees three jampacked days of vendor exhibits and an event schedule designed to offer a path to addressing many of the industry’s biggest issues and trends. “I don’t think there’s anyone who isn’t ready to get out of their shops or homes and meet up in person again, and we’re really excited that NORTHEAST will be the first major event in our industry to provide that opportunity,” AASP/NJ President Jerry McNee says. “Our exhibitors are thrilled to be involved, and our education and training schedule will be stronger than ever. We’re looking forward to giving everyone who attends the best experience they’ve had since the pandemic began – right here in New Jersey.” WMABA will once again show its support of the show by providing education and training via its popular Collision

The end of Zoom Gloom.

BY JOEL GAUSTEN

Professional Repairer Education Program (Collision P.R.E.P.). WMABA President Steven Krieps is thrilled to see both associations join forces to give attendees a path toward becoming better trained and educated through the NORTHEAST experience. “Any time you put together professionals who care enough about our industry to be involved in these associations, the outcome is always going to be better than one association doing it alone. There are so many different perspectives and experiences; when you start stacking those together, you end up with this amazing show.” The 2021 Collision P.R.E.P. will feature the return of veteran NORTHEAST presenter and new WMABA Board member John Shoemaker (BASF), who will preside over the September 11 course “Productive Refinishing Processes.” His presentation will explore how to utilize proven best practices to maximize paint shop productivity by reducing common shortfalls, minimize paint flaws, improve paint hours per booth cycle and increase overall throughput. He encourages those who plan to attend to do some preliminary homework at their businesses before hitting Secaucus. This includes taking a serious look at the current performances of their paint areas. “Why they’re attending the course is because there’s probably some kind of an issue somewhere, and they’re looking for me to help them fix it. I’d have them write down three things that are problems in their shop that they notice on a day-to-day basis.” After doing dozens of virtual classes throughout the pandemic, Shoemaker is one of many who can’t wait to see live faces again. “In-person presentations bring a lot more interactions from the attendees. There are a lot of times when I learn just as much by presenting a course as they do by being at that course, and that’s all because of the attendee involvement. We didn’t get a lot of that by being virtual.” While there are plenty of things that require industry members’ attention in the here and now, Collision P.R.E.P. will shine a light on

what collision repair will look like down the road. During his can’tmiss presentation, Frank Terlep of Auto Techcelerators, LLC will take showgoers on a journey to the year 2035, which he predicts will have a drastically different collision repair landscape than the one we see today. “By presenting what I think the industry will look like in 14 years, I hope to educate the industry on new technologies and trends they will ultimately need to learn about, understand and implement into their businesses,” he says. “A couple of technologies that will change industry practices dramatically in 14 years are telematics and Artificial Intelligence [AI]. Telematics will change everything from first notice of loss [FNOL] to how recalls are handled. AI, which is already making its way into the industry, will change the way estimates are written, the way hail damage is estimated, the way total losses are managed and much more. AI will affect all aspects of the industry!” Krieps, who works as an independent appraiser in addition to his role as operations coordinator at Greg Cline Automotive (Winfield, WV), will take part in a special panel discussion devoted to demystifying the Right to Appraisal, otherwise known as the Appraisal Clause. Comprised of both repairers and experts, the candid gathering promises to explore real-world situations with real results – both wins and lessons learned – by those who are deeply involved in this sometimes-taboo topic. With the Appraisal Clause receiving more attention and interest from the industry than ever before, Krieps looks forward to using his participation on the panel as a way to address some of its benefits, misconceptions and potential pitfalls. “The Appraisal Clause is definitely a useful tool, and consumers need to be aware of it. Shops need to be careful about making it seem as if they’re the ones trying to push for the appraisal. The consumer needs to be the main focus. Shops that want to play in this realm need to make sure they learn enough about it, are informed and don’t make mistakes.” NORTHEAST’s return to a live format has inspired excitement from new and returning exhibitors that have already signed on to support From far left: Mark Olson, Ron Reichen, Mike Anderson and John Shoemaker are the show and showcase their products and services. Not surprisingly, among the many industry leaders participating in the 2021 Collision P.R.E.P. slate.

continued on pg. 31

August 2021

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2021

COLLISION P.R.E.P. SCHEDULE FRIDAY, SEPT. 10

SHOW HOURS 5pm - 10pm

3pm OEM Workshop: Ford Discusses Accessing Repair Information, Collision Sectioning Procedures for Aluminum Gerry Bonanni (Ford Motor Company) & Joe Burda (I-CAR) 5pm It’s Not Just About DTCs: Overview of Calibrations Mike Anderson (Collision Advice) & Jake Rodenroth (asTech) 7pm Collision Repair 2035: Trends and Technologies that will Force the Collision Industry to Reinvent Itself by 2035! Frank Terlep (Auto Techcelerators, LLC)

SATURDAY, SEPT. 11

SHOW HOURS 10am - 5pm

10am Getting and Staying Certified – OEM Repair Requirements and Relationships Intertwined Dave Gruskos (Reliable Automotive Equipment) & K. Michael Bradshaw (K&M Collision) 10am Productive Refinishing Processes John Shoemaker (BASF) 12:30pm Customer Conversations: Demystifying the Appraisal Clause Various Panelists

3pm Documenting for Repair Process and Liability, Building a Bulletproof File and Improving Processes Over Time Mark Olson (VECO Experts) 3pm Structural Identification for Profitability – Knowing and Understanding Structural Damage Ron Reichen (Precision Body & Paint) 5pm The Wide World of ADAS: Panelist Discussion of Advancements in Safety Systems, Diagnostics and Calibrations Various Panelists

SUNDAY, SEPT. 12

SHOW HOURS 10am - 3pm

8am Repair Planning Using DEG and OEM Owners Manuals to Earn Vehicle Owner Trust Danny Gredinberg (Database Enhancement Gateway [DEG]) 10am Tech Download: What a Diagnostic Scan Tool Is and Is Not Josh McFarlin (AirPro Diagnostics) 10am Your Key to Success: Optimize Your Labor Lee Rush (Sherwin-Williams)

*Schedule subject to change. Visit wmaba.com/collisionprep to get the most current information! 30

August 2021

COVER STORY

CONTINUED FROM PAGE 27

NORTHEAST Gold Sponsor Ford was one of the first to pledge its support. “Ford first attended the show during the launch of the new 2015 F-150,” shares Gerry Bonanni, Ford’s senior engineer for paint and body repair. “We really like the interaction with all of the body shop personnel attending, especially visiting with those who actually perform the work in our great industry. After months of quarantine, we look forward to the opportunity to meet and engage in person with our friends in the industry who will be attending the show.” A NORTHEAST attendee for more than 30 years, Terlep is looking forward to exhibiting with Auto Techcelerators in addition to serving as a Collision P.R.E.P. presenter. “I – and the companies I have worked for or owned over the past 35 years – have always looked at NORTHEAST as one of the most important events to attend and exhibit at, because the show provides access to one of the largest automotive and collision markets in North America. Attendees who visit our booth this year will get the chance to see how our ADAS CoPilot, Calibration CoPilot and Test Drive CoPilot can help their businesses improve the way they estimate, calibrate and validate ADAS vehicle repairs.” As a shop professional, Krieps is anxious to hit the floor to catch up with current and prospect vendors. He credits his past attendance at the show for initiating his shop’s ongoing business relationship with NORTHEAST Lanyard Sponsor Innovative Solutions and Technology, and he looks forward to building that same unique level of connection with other companies this year. “It’s one thing to call Technical Support or whoever the distributor is for that particular equipment manufacturer and ask questions because you’re having an issue, but it’s another thing when you can go to the show, see the piece of equipment that you have or are looking at, go over, ask questions and get hands-on information. I don’t think I’ve ever attended a booth where I wasn’t told, ‘If you ever have any issues, here’s my cell number.’” While the action on the floor and in the seminar rooms is certainly impressive enough, perhaps the greatest thing about the upcoming NORTHEAST show is that it represents what is possible when two state associations – in this case, WMABA and AASP/NJ – work together to create something truly meaningful for the

industry at-large. “This is a true sign that our industry is trying to come together as a group and present itself professionally,” Shoemaker says. “With WMABA reaching across that aisle and drawing that collaboration, we’ve become a bigger voice.” With the largest regional automotive event in the nation just around the corner, now is the time for WMABA members to make their plans to hit New Jersey for the live experience they’ve been waiting for. As Krieps has already told many of his fellow shop owners in West Virginia, the few hours it will take to get to the Meadowlands Exposition Center will be worth it. “It’s a shorter drive than going to the beach!” NORTHEAST 2021 is made possible through the generous support of the following sponsors: Platinum Sponsor: BASF; Gold Sponsor: Ford; Silver Sponsors: PPG, NJ Parts of Flemington; Lanyard Sponsors: Innovative Solutions and Technology, Spanesi; Attendee Prize Sponsor: Axalta Coating Systems; and General Sponsors:

Harbortouch and Sherwin-Williams Automotive Finishes. Pre-registered NORTHEAST 2020 attendees will not need to re-register for the 2021 show, as badge data will be carried over to these new dates of September 10-12. For updates and information on NORTHEAST (including available lodging), please continue to visit the official event website at aaspnjnortheast.com. Classes are still being added - please visit wmaba.com/ collisionprep for additional information on Collision P.R.E.P. or to register. H&D

Executive Director’s Thoughts While getting out of your four walls has never been more exciting, it’s also never been more important. With all the industry is facing, the slate of education we’ve put forward for participation is the best and most intensive way to not just get relevant information but ask questions about where the industry is headed. I know – and can promise – the takeaways will be far more valuable than the time you spent to get there! - Jordan Hendler

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INDUSTRY

ADVICE

ASK MIKE:

What Were Your Biggest Mistakes and Lessons Learned as a Shop Owner? This month, we “ASK MIKE” to share some of his biggest mistakes and lessons learned during his time as a shop owner in Virginia. 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: You’re an industry veteran who has spent several years consulting with shops and presenting seminars across the country. Although I’ve seen enough of your presentations to know you are positive and inclusive toward everybody who attends, I often wonder if there are younger industry professionals in those audiences who may feel intimidated or out of their league when hearing advice from you or other experienced leaders in the industry. The truth is, nobody is higher than anyone else in those seminar rooms – and everyone starts out in this industry at the same point. You come straight from the body shop world, and you remember what it was like to start out in this business. What were some obstacles you faced or flat-out mistakes you made in the course of your career that helped you learn and grow in this profession? Mike Anderson: I’ve made a lot of mistakes! My dad was old school; he only bought things for the business that we could pay cash for. I learned how to write estimates and repair cars properly, but what nobody taught me was the financial side. When I bought my business from my dad, I hadn’t learned about

August 2021

that. I made the mistake of not knowing the finances of the business, and that was a big thing I had to learn. I had to learn how to determine the financial impact of buying another shop or even hiring another employee. I had to learn how to manage the cash flow, and I had to learn the financial Key Performance Indicators [KPIs] I had to look at to make sure I had enough money in the bank so I could survive. When I was young and first in business, I thought, ‘I’m going to get paid for every single thing I do to fix this car.’ If I wanted $3,999.99, by gosh I was going to get paid $3,999.99! I was so focused on being right that I wasn’t necessarily happy. Sometimes, I would step over dollars to pick up pennies. I’d spend two weeks going back and forth with an insurance company to get paid that extra $70 when I should have just said, ‘You know what? It’s a $5,000 claim. Just move on.’ It actually worked to my negative benefit. I’m not saying to roll over; you have to get paid for what you do and stay profitable. But sometimes when you’re trying to fight for that last penny, you’re spending time that could be better spent doing something else. Again, I’m not saying not to push for things, but if there was an example of pushing too hard, that was it. A mistake is only a mistake if you don’t learn from it. If you learn from it, it becomes a life lesson. I’ll be 59 this November, and I feel like I’m at that really great point in my career where I have a lot of life lessons I can share with people so they don’t have to make the same mistakes I did. That’s what I do when I consult with shops, and I find that gratifying. One of the things I hope I bring to the table is being able to bridge that gap between ‘children’ – the younger crew members – and ‘parents’ – the older owners and managers. When I was first in the business, my dad wanted to do things old school. I remember it was all I could do to get him to buy our first fax

Nobody’s perfect. 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.

machine and our first computer! We didn’t have anyone to be the buffer between my dad and me. I understand the perspective from both sides. Children are eager, passionate and enthusiastic. Sometimes, the parents tend to want to hold them back a little bit. That turns into friction at times, so I work to balance that. Maybe the older people have a reason for being the way they are, but I can help them understand how not to penalize a young person for their enthusiasm. I try to tap into that so that both generations can walk side by side. H&D: Because everybody is always so focused on getting cars in and out, they sometimes lose sight of the importance of people – not just in regard to customer service, but also in how they treat and work with the people in the shop. From a shop owner’s perspective, what were some issues or challenges you faced over the years that you feel made you a better, more empathetic employer as a result? MA: I think there were times when I wasn’t as fair to employees as I should have been. There were people I should have placed more trust in, and there were people I trusted too much. Also, I think we have to recognize that this is a very stressful career. I felt like I could have appreciated my employees more. Having gone into hundreds of shops, I have a greater appreciation for my employees – the quality of work they did, how much they cared and how much effort they put in. It was something I didn’t appreciate until it was gone. I don’t think I realized how loyal and devoted they were. That’s what I strive to do now with my Collision Advice employees. H&D: Like you, I talk with body shop owners all over the country every single day. As you mentioned earlier, this is a stressful business, and not everybody I speak to is in the best of spirits. They’re dealing with insurance companies, sublets and all the other things that are driving them crazier than ever. Were there points in your career when you doubted whether you would stay the course? If so, what enabled you to maintain your passion for what you do? MA: When I was really young in this business, I went to a WMABA meeting one night and was really frustrated with some of my employees. [Late WMABA member] Jerry Dalton saw me and asked me what was wrong. I told him, and he started laughing. I said, ‘I don’t think it’s funny.’ He said, ‘Mike, you’ve got to

understand something. If people had your same passion and drive, they would own their own business.’ That was so insightful; it was great wisdom from a great man. I have to admit that it can be lonely at the top. Like with a priest or pastor, everybody in the church is telling them about their problems, but who do they talk to? One of the things you have to realize is that you don’t need to have all of the answers. Tap into your employees. Your employees have a lot of great insights if you just allow them to be creative. I’d rather have somebody who does something wrong but has the right intent in their heart. Maybe they screwed up because they were trying to be creative and innovative and it didn’t work out. I think employers need to recognize and reward that and not stifle their teams. You don’t need to have all the answers; you have people who work with you. You can tap into their resources. I was speaking at a conference years ago, and there was a guy who got an award for working at a company for 40 years. He never called out sick or missed a day of work. Before they gave him his award, they asked him if he had anything he’d like to say. He went up to the podium and said, ‘For 40 years, you paid me to work with my hands. For not one penny more, you could have everything I had up here,’ and he pointed to his head. He said, ‘All you had to do was ask.’ It was really powerful. For not one penny more, we can have all of our team’s ideas and thoughts. All we have to do is ask them and listen to what they have to say.

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). H&D

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