REPAIRER DRIVEN EDUCATION HIGHLIGHTS FROM SEMA 2021

HIGHLIGHTS

As always, the Society of Collision Repair Specialists’ (SCRS) Repairer Driven Education (RDE) series featured SEMA 2021’s best collision-related information, delivered by industry-leading movers and shakers, allowing attendees to walk away with useful knowledge to help enhance their shops’ success.

During “Scanning and Calibrations – Make Them a PROFIT Center of Your Business,” AirPro Diagnostics’ Aaron Clark and Eric Newell discussed the liability and safety concerns associated with pre- and post-repair scans.

“Scanning is about customer safety,” Newell pointed out. “You only have two choices: Will you repair the vehicle safely, or are you making decisions that could put someone’s life in jeopardy? There is no middle ground!”

“We must repair vehicles properly,” Clark agreed. “Whether you perform calibrations in-house or outsource them, you’re still responsible for ensuring they were done correctly. Ask yourself whether or not you have the knowledge to fix the vehicle in front of you; too often, we don’t. We take on something we think we’re qualified to do, but procedures change often so you need to pull them every single time. Ultimately, we want someone who is willing to learn and to apply accurate knowledge.”

In an industry that constantly sees new trends and change, Pete Tagliapietra and Ken Eagleson of NuGen IT informed collision repairers about the transitioning approach OEMs seem to be taking in regard to their Collision Repair Networks (CRNs). OEMs’ increasing interest in how their vehicles are repaired, their willingness to build insurer relationships and their desire to consume as much data about customers as possible all boils down to wanting to ensure their cars are being repaired correctly. Although price and equipment are concerns for many shops, he believes more and more will aggressively pursue CRNs with DRP programs falling to the wayside.

“You need to be cognizant of the fact that OEs are playing – and will continue to play – a much bigger role in how their brand is being repaired, and that momentum will continue,” stressed Tagliapietra. “You will also see further relationship-building between insurance companies and manufacturers.”

Customer satisfaction is crucial to OEMs. If a vehicle owner isn’t happy with the vehicle, they will dump it in less than a year and move on to another brand. OEs have a real stake in how their vehicles are repaired, and that is where their interest in building better insurer relationships comes from.

“There’s an argument to be made that OEs will have greater influence over insurers as things move on.”

Hiring and attracting new blood to this industry was a challenge long before the pandemic, and Michael Lanza of SherwinWilliams painted a very clear picture of what today’s employees look like and how to attract them into a collision center.

According to Lanza, 21st Century employees (those born after 1980) will make up 75 percent of the workforce by 2025. These employees do not share the work ethic and mindset of the Generation X and Baby Boomer generations who put their noses down and didn’t question a thing.

“These 21st Century employees need to believe their ideas are being heard to make a tangible difference toward a goal,” explained Lanza.

They value meaningful motivation, challenge hierarchy status, want relationships with their superiors, are open to change and are intuitive to technology. Offering them a sense of purpose and marketing a business as a culturally stimulating environment is a great way to attract new employees. Digital marketing is key to finding employees. “You can’t search for people who are looking to be in this industry; you want to find people who don’t know they want to be in this industry.”

“Hire people who are good enough to leave, but treat them well so they want to stay,” he advised.

With events like a pandemic, growing emphasis on OEM certifications and the introduction of the electric car, changes occur so exponentially that collision repairers must prepare for what many are calling “the new normal.” BASF’s John Shoemaker joined colleagues Jeff Wildman and Jane Niemi in addressing “The Ebb and Flow of a New Normal.”

Using the electric vehicle as an example, the team stressed that not knowing what we don’t know is problematic.

“It’s a different skill set,” Wildman pointed out. “Think of the voltage and power of these batteries. What happens if you have one of these cars and there’s a thermal event in your shop?”

New technology is always evolving, but the pandemic launched a reliance on the virtual: Photo estimating increased substantially from one percent to 22 percent with an expectation to rise to 50 percent by 2025, according to Niemi.

Shoemaker stressed that businesses must closely examine where their work is originating. It’s known that 70 percent of people seek vehicle repairs near their jobs. Since the pandemic forced most to work from home, it also changed the customer base for many shops.

“Bottom line is that your growth is dependent on your knowledge of what’s going on in the world today,” Shoemaker advised repairers.

Steve Trapp of Axalta spoke about turning quality control information into process improvement gold. Using tools such as a continuous improvement log, Trapp walked attendees through the process of recording every step along the way.

“Talk to people. If there is a failure, write it down, have a conversation and say, ‘Please indicate why you think it triggered this.’ It’s meant to give us as much information about that point because it’s fresh in your mind and you remember. Logging that information will help us.”

When it comes to choosing a DRP, OEM certification or other relationship, Tim Ronak reminded shops that they need to do their due diligence and make wise business decisions.

Trapp explained the difference between a work standard and a quality standard: The work standard represents the steps followed to get the desired result, while the quality standard is the level against which it is measured.

“Standards take the emotion out of a process. Without standards, I can just say, ‘Man, you suck.’ With standards, I can say, ‘It doesn’t look like the example shown here, and it’s not ready to go to the next level.’ So, if you don’t have quality standards, it’s hard to have QC and quality assurance which you need to create.”

Many factors contribute to a shop’s success, and during “Finding Success Under OEM Evolving Expectations,” Mike Kirchoff (Reliable Automotive Equipment) emphasized the importance of using the right equipment, obtaining adequate training, developing relationships with dealers, keeping customers informed and – most importantly! – executing safe and proper repairs by following OEM repair procedures.

“Repair procedures are important because even a small repair could have a huge impact if performed incorrectly. The repair procedures allow you to develop a blueprint. Repairing vehicles quickly and skipping steps is exactly what you DON’T want to do! It doesn’t increase profitability. You do that by writing for all the necessary processes, including consumables and time spent on testing and machine setup. You’re responsible for what you repair, so make sure you document your work.”

Collision repairers deserve to get paid for what they do; therefore, it’s crucial they take the necessary steps to document every OEM procedure necessary on a repair. Database Enhancement Gateway (DEG) Administrator Danny Gredinberg armed repairers with valuable resources and tools to make sure they set out to “Capture Everything” and receive proper reimbursement for fixing cars correctly.

“Sometimes, you have to know the terminology an OEM is using,” he advised, addressing the importance of following manufacturers’ procedures. “The first time may be a little challenging, but the more you do it, you’ll get to the information faster.”

“We can all agree that we want to get paid for what we do,” he added. “So, if we run across an issue, we can go to the DEG website and search for submitted inquiries that have been put in and resolved.”

There are thousands of not-included operations listed which repairers can reference when building out their repair plan.

Gredinberg introduced the audience to the Blueprint Optimization Tool, which is an automated estimating building tool that works with SCRS’ Guide to Complete Repair Planning. Using the tool is “money in the bank,” according to Gredinberg, as the software finds line items that can otherwise be easily missed.

“We don’t want to get paid for more or less than what you do and what you say you are going to do.”

Tim Ronak (AkzoNobel) shared insights related to “Severing or Surviving the Loss of a DRP or Key Account,” recommending that shops assess the overall discounts available and measure the gaps between retail and agreement prices.

“When you’re targeting an individual account, you’re looking for one that can provide profit. You need to make a good business decision, not an emotional decision. Monetize the administrative aspects; what does it cost to manage that particular account? Everything has a cost benefit, and we have to decide what works best for us and our business.”

“We need to start looking at how we measure performance in our businesses,” Ronak added. “Gross profit dollars per physical manhour invested is the equivalent to measuring the amount of profit that money machine generates for each individual on the floor. That number of profit dollars, that’s the meaningful number: This is what I’m capable of generating per physical manhour on the floor.”

Repairers learned the art of effective communication strategies and negotiation in today’s virtual world from Lee Rush (SherwinWilliams). Certain words can easily trigger negative emotional responses, causing one to become uncomfortable and defensive.

He emphasized the focus on positive uses of words:

“It’s effective when it’s positive and constructive and sets the stage for honest and empathetic negotiations.”

Even the tone of voice can paint the picture and set the tone for negotiations. One should be aware of what Rush calls “your everyday tone,” which can be useful for negotiating if it’s pleasant and friendly.

Providing a “Complete Understanding of the Right to Appraisal,” Robert McDorman (Auto Claim Specialists) explained how this document allows repairers to stand in the consumer’s shoes and invoke the appraisal clause when necessary.

“The consumer’s policy dictates what responsibilities the carrier has. If the policy says they need to fix the car, why aren’t they fixing it? We need to hold the insurers accountable. The policy dictates what happens in the claim – ALWAYS.”

Invoking the Right to Appraisal yields an average increase of 90 percent, McDorman noted, recommending shops educate clients.

“You have to be committed to it and make it part of your business model. There’s only one way to fix cars – and that’s the right way!”

Diagnostic specialist Jake Rodenroth opened repairers’ minds to the very real and quickly approaching new repair world involving electric cars, up-and-coming vehicle manufacturers and what the future of repair may look like in just a few years.

John Shoemaker challenged shops to examine where their work originates as they explore the “new normal.”

Diagnostically speaking, there is no substitute.

Porsche technology. Porsche Genuine Service & Parts.

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