Which KPIs Will Drive Success in 2024?
Plans for 2024 Southeast Collision Conference
December 2023 Volume 16, No. 12 $5.95
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2023 WMABA GOLF OUTING HIGHLIGHTS PLUS!
coverage starts on pg. 15 www.grecopublishing.com
Season’s Greetings and best wishes for 2024! At this festive time of year and as 2023 ends, we would like to say thank you to all our customers and distributors for their loyalty and ongoing support. We are proud to be your vehicle refinishing partner and look forward to working together with you in 2024 and beyond. Thank you! From all of us at AkzoNobel’s Vehicle Refinishes. akzonobel.com
December 2023
CONTENTS
26 COVER STORY PHOTOS & COVERAGE BY CHASIDY RAE SISK
2023 WMABA GOLF OUTING HIGHLIGHTS Gathering again on the green. OFESSION PR EPAIRER AL R
ucational Webinars
ntoring portunities
nsindustrynetwork.com
WMABA AND CCA ANNOUNCE PLANS FOR 2024 SOUTHEAST COLLISION CONFERENCE
ED
U C AT I O N PROGRA M
Mark your calendars.
2023 SEMA SHOW RECAP BY ALANA QUARTUCCIO Exclusive coverage begins on page 15
16
DEPARTMENTS
CANDID CONVERSATIONS, CLAIMS PROCESSING & GAME SHOW CONTESTANTS – “THIS IS CIC!” ADAS, EULAs and consolidation.
SCRS BRINGS NEW IDEAS TO THE TABLE FOR A BETTER TOMORROW
4
Executive Director’s Message
22 A SPOTLIGHT ON EDUCATION - HIGHLIGHTS FROM SCRS’ REPAIRER DRIVEN EDUCATION SERIES
7
WMABA Member Application
24 CHANGING WITH THE TIMES: THOUGHTS AND PROCESSES TRANSFORM AS TECHNOLOGY ADVANCES
11 WMABA Sponsors
18
Creating a better collision repair world.
SCRS’ RDE has you covered.
What’s next?
offers education, mentoring and leadership elopment opportunities to build critical skills for ess in the collision repair market.
nual Education nference
6
Presented by
Why Join WIN?
cal/Regional tworking Events
LOCAL NEWS
30 Industry Advice: Ask Mike
25 COLLISION INDUSTRY RED CARPET AWARDS 2023 WINNERS Celebrating excellence.
34 Advertisers’ Index
• Scholarship Program • School Outreach Program • Most Influential Women (MIW) Award
WIN UPDATE
30 NOMINATE AN INFLUENTIAL WOMAN FOR THE WOMEN’S INDUSTRY NETWORK’S 2024 AWARDS Help her win a WIN MIW award!
December 2023
3
EXECUTIVE DIRECTOR’S
No coasting around here!
BY JORDAN HENDLER
MESSAGE
It’s Not a Race to the New Year... It’s Finishing 2023 STRONG! There’s a tendency to coast to the New Year, and let the holidays and season changes be an excuse to ride it out. There’s still time in this year to make changes for the better. SEMA is a perfect example of that. It was a very exciting week of events, and the industry showed up and out for all of it. Education, tradeshow, conferences, and more hallmarked the industry’s desire to be ready for the future. In that sentiment, each of us has an opportunity to take stock of where we are, what we’ve accomplished thus far, and what we’re believing for even in these final weeks of 2023. Stepping back, and looking objectively in your four walls – even inside your self – and analyzing the business and the mindset for gaps, holes, new growth areas, and more is how we position ourselves to not start the new year from a ground zero. Every business should be making their adjustments much more frequently than one time a year. Have you considered having an exploratory planning session with your teams? What would they desire to make the business better, and the culture better? Where do they see prospective expansion? Endeavor to listen without response, take note of all the ideas, and be studious to think them all through before you go back with a thought or recommendation. Do you have a mission and vision that they can put on and act
out, on behalf of the entire team? Could refocusing that for clarity help them in the next season of your business? With WMABA, we are endeavoring the same intentions with our Board of Directors. We are analyzing everything in the “bucket” in our planning meeting(s). We are asking ourselves these same questions: What is best for you, our members, and how can we serve you better? How can WMABA add value and education to your shop? Where can we increase focus, and engage new conversations? In what ways can we grow you as leaders, and as a community? Every question deserves pointed attention. We are striving to make WMABA better for the upcoming year as well. In what ways can we serve you better? As an entire industry, as a local shop, and as an individual? We want to hear from you in any way you want to communicate. We’ve had a bit of dormancy as of late, but we are ready to break out for you!
Jordan Hendler
(804) 789-9649 jordanhendler@wmaba.com
Check the WMABA website and newsletters for regular updates and reports from the Executive Director’s perspective. WMABA OFFICERS
PRESIDENT VICE PRESIDENT TREASURER SECRETARY IMMEDIATE PAST PRESIDENT
Steven Krieps steve@gregclineauto.com 304-755-1146 Rodney Bolton boltonconsulting61@gmail.com 443-386-0086 Kris Burton kris@rosslynautobody.com 703-820-1800 Phil Rice phil@ricewoods.com 540-846-6617 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
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December 2023
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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 © 2023 Thomas Greco Publishing, Inc. Stock Images courtesy of istockphoto.com.
Co-celebrating decades of creating chemistry between two industry leaders
Here’s to 241 years of combined service excellence This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it. Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.
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December 2023
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LOCAL
NEWS
WMABA AND CCA ANNOUNCE PLANS FOR 2024 SOUTHEAST COLLISION CONFERENCE
Strengthening the “professionalism and business conditions for the professional collision repairer” is a key part of WMABA’s mission, so it’s no surprise that the association will once again be partnering with the Carolinas Collision Association (CCA) to host the third annual Southeast Collision Conference (SCC), taking place May 16-18, 2024 at the Greensboro Coliseum Complex in Greensboro, NC. “Associations working together for the direct benefit of the collision repairers is exactly what we’re supposed to do,” explains WMABA Executive Director Jordan Hendler, promising “national-level contributors and elevated experiences for both attendees and vendors alike [at the] premier tradeshow and education opportunity. We literally cannot wait for you to come!” Referencing last year’s decision for the two organizations to team up, CCA President Kyle Bradshaw says, “The combination of our associations was an exponential expansion for the Southeast Collision Conference. We
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December 2023
will continue to work hard to bring our region the best education and vendor opportunities possible. Being a part of the team leading this event, I’ve seen just how much more we can do for 2024!” “The 2023 show went way beyond our expectations, and I know that we will do the same this coming year,” agrees WMABA President Steve Krieps. “We want to see the needle move for every individual who participates in the education and tradeshow; we want to see lives and minds changed for the better. WMABA is so proud to be part of this great event.” Organizers intend to move SCC between the two regions each year in an effort to serve as many shops as possible. The Conference’s educational offerings focus not only on owners but on managers and technicians as well, as WMABA and CCA hope to elevate the professionalism of the industry across all levels of the shop. The 2024 SCC promises to deliver two days of educational classes focused on management, estimating and technical topics in addition to offering panel discussions with OEMs and industry leaders. OFESSION PR EPAIRER AL R
Presented by
ED
U C AT I O N PROGRA M
Local education on the way.
Participation in national events has allowed both associations’ leaders to build relationships with prominent leaders in the collision repair industry, Vans. Born to run. and they are bringing these connections to the show through the vendors Get your customers back on the road faster with in attendance, as well as national-level industry educators and networking Genuine Sprinter Parts. opportunities. “Weourstrive to give everyone premier experience with many Call Sprinter Certified Partsa Advisors today to get started. takeaways to improve their daily lives as collision repairers, and it’s a 301-890-3060 Sprinter Silverwho Spring priority that those are instructing our participants be onFax: the301-890-5473 leading mbsilverspring@mileone.com 3301 Briggs Chaney Rd. edgeSilver of their field,” Hendler stresses. “Our teams are hard at work onS 8am-3pm Hours: M-F 7:30am-5pm, Spring, MD 20904 the planning and preparation of a fantastic education program with opportunities for all segments of collision repair.” “Our priority is to bring the best the industry has to offer to our region,” adds CCA Executive Director Josh Kent. “The entire point of the Conference is to get shops together, help them to get great education and encourage community growth with their peers. We work really hard to give them the very best experience. I love seeing the shops get connected while they also get pumped up with great content. It’s why I love what I do!” “I couldn’t agree with Josh more, about seeing industry professionals get their lightbulb turned on,” Hendler concurs. “We had such a great Give your customers the reliability outcome for the first time working together, it was such a no-brainer to and quality of Genuine Parts. collaborate together again for the 2024 show. It’s going to be the not-to-beContact our team of Mercedes-Benz Certified missed event this side of the country!” Parts Advisors today to get started. The full agenda, complete with participating sponsors and vendors, will be available in early 2024, according to Hendler. More information Mercedes-Benz Silver Spring 3301 Briggs Chaney Rd. about the 2024 SCC will be added to the website as it becomes available. Silver Spring, MD 20904 Stay up to date by visiting southeastcollisionconference.com. 301-890-3060 Fax: 301-890-5473 Learn more about WMABA at wmaba.com, and find additional information mbsilverspring@mileone.com about CCA at carolinascollisionassociation.com. H&D Hours: M-F 7:30am-5pm, S 8am-3pm
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OURISMAN CHEVROLET 4400 Branch Avenue Temple Hills, MD 20748 Phone: 301-899-6990 Fax: 301-899-9375 www.ourismanchevrolet.com
WMABA THANKS
YOU
WMABA thanks their generous supporters of the
LEVEL 1
Corporate Sponsor Program for 2023!
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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A LOOK INTO
2023 It was another one for the books! From non-stop attractions on the show floor to powerful discussions in the classrooms courtesy of the Society of Collision Repair Specialists (SCRS) and the Collision Industry Conference (CIC), collision repair professionals never once ran short of something to see, learn and do – while having non-stop fun in the process because it all went down in Las Vegas, after all! Continue reading to check out our BY ALANA QUARTUCCIO exclusive SEMA 2023 coverage!
December 2023
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RECAP Candid Conversations, Claims Processing & Game Show Contestants – “This is CIC!” They say what happens in Vegas stays in Vegas, but for those who attended the October 31 Collision Industry Conference (CIC) in conjunction with the 2023 SEMA Show, that statement could not be further from the truth! One of the most well attended CIC events in recent years, industry professionals walked away with newfound knowledge and the promise of a healthy future with a healthy dose of amazing memories, from the smash hit Jeopardy-inspired game show Repairidy to a night to remember on the Red Carpet in celebration of CIC’s 40th anniversary complete with an award ceremony. “We have to think of the consumer in everything that we do,” CIC Chair Frank Terlep (Opus IV) reminded the audience as the day got underway. “We have to focus on who is getting into that car after each repair, after it’s been calibrated, and ask ourselves if we’d put our child or grandparent in that vehicle.” Consolidation is the future, and during a special presentation, an all-star panel featuring Matt DiFrancesco (High Lift Financial), Laura Gay (Consolidation Coach), David Roberts (Focus Advisors), Cole Strandberg (Focus Investment Banking) and John Walcher (Veritas Advisors) agreed that it cannot be ignored.
So where does that put the independent repairer? “The environment with consolidation is very bright. I think the independent shop really has a place in this environment,” DiFrancesco said during the panel’s candid conversation. “It may be a different place, but I think it’s a very important one.” Gay agreed, adding that independent shops shouldn’t feel pressure that they will have to sell in order to survive. “There’s absolutely a place for the independent repair shop. One hundred percent.” There are many different deal structure platforms taking place, according to the panelists. There’s MSOs buying other MSOs, private equity deals and shop owners looking to grow their business by acquiring other shops, or those simply just entering into a succession plan. In analyzing the different platforms that exist, Strandberg noted, “Really the perfect storm for a platform level comes when you have an engaged owner who’s in it for the long haul, wanting to roll significant equity. It shows they’re around. They’re a believer in the story, and they’re going to drive the ship for you.” CIC attendees heard an encouraging and engaging discussion via the Talent Pool and Education Committee, featuring instructors
of the Collision Engineering program, their students and the repair shop owners who employ them about their experiences and how the program is really helping to shape young people for the collision repair universe. Both instructors agreed that in addition to engaging these students in their program, a key component is finding the right shop managers who are willing to work with these up-and-coming technicians. “We do a lot of footwork with the shops and get to know their cultures and who will be their mentors. That is the biggest piece in all this,” stated Laura Lozano (Contra Costa College). “I need someone to be able to shake my hand and not lie to me,” stressed Octavius Cavozos (College of Lake County). “You need that trust. If you don’t have the willingness to work with the college and the student, we won’t succeed.” The term EULA (end user license agreement) has been a frequent subject at CIC this past year. The November forum dove a bit deeper into exactly what the concerns are surrounding transparency – or the lack thereof. The discussion also posed the questions of who is responsible for the data and what repairers should keep in mind when using scan tools. Since so much uncertainty is involved,
Danny Gredinberg and Erin Solis hosted “Repairidy” to close out CIC with some laughs and industry trivia, along with contestants Amber Alley, Darrell Amberson and Liz Stein.
16 December 2023
Highlights from CIC’s final meeting of 2023.
BY ALANA QUARTUCCIO
(L-R): Jim Keller, Amber Alley, Cheryl Boswell, Chris Evans and Michael Bradshaw discuss solutions for better claims handling during “Processing the Claim: the Good, Bad and the Ugly” the best thing a collision repair facility can do is protect the data, which can be done with work authorization forms. Educating the consumer about the data is another key in protecting one’s business. Safely repairing vehicles goes well beyond clearing DTC codes. Today’s vehicles require a technical skill set that not everyone in the body shop may possess. In fact, some shops may not even have someone skilled enough in this area to effectively and correctly address ADAS calibrations. Emerging Technologies Committee Co-Chairs Chuck Olsen (AirPro Diagnostics) and Bob Augustine (Opus IV) led a panel discussion addressing the procedures, tools and needs that many body shops may be overlooking. Identifying system checks is key in doing diagnostics, Olsen explained in regard to using scan tools. “You need to go to the service information. That’s what a diagnostic technician does. You need the tool to get it done, but the tool won’t do it for you. “There are different codes, and you may
have to go in many times and re-check the function of that system,” he added. “You’re not home yet when just clearing the code.” “Nearly all mechanical shops have a diagnostics person, and we don’t see that much in the collision space,” observed Augustine. “There is a skill set missing when you are doing diagnostics on the vehicles. The workflow and vision doesn’t really have a place for that person. It’s something we need to figure out. This is not about just taking things apart and putting them back together; there is a lot more going on behind the scenes.” Closing out the day was an exciting event that will undoubtedly be talked about for years to come! Clad in a red-sequined tuxedo jacket, the Estimating and Repair Planning Committee’s very own Danny Gredinberg (Database Enhancement Gateway) took the podium with an equally red-sequined Erin Solis (Certified Collision Group) as co-host to present the oneof-a-kind “Repairidy” game show, filling the the
Laura Lozano, Sam Ortega and Karina Badillo during the Talent Pool and Education’s Collision Engineering Program panel discussion.
last hour of CIC with applause and chuckles! As Terlep put it, “I thought I’d seen everything in my 30-plus years of coming to CIC!” Contestants Amber Alley (Barsotti’s Body and Fender; San Rafael, CA), Darrell Amberson (LaMettry’s Collision; MN) and Liz Stein (OEConnection) were good sports as they hit their buzzers to chime in on questions in the following categories: 40 Years of CIC, Repair Planning, Repair Process, Claims, Drop Off and Empty Chair. Alley walked away the winner with 30 points! A Vegas CIC event would not be complete without an amazing reception at the Westgate Resort. The event was immediately followed by the Red Carpet Awards, which was tied into the CIC 40th’s anniversary festivities. See page 25 for award winners. The buzz has already begun for the next CIC event, set for January 17 in Palm Springs, CA. To register, please visit ciclink.com/ schedules. H&D Bob Augustine and Chuck Olsen
Bob Augustine December 2023
Chuck Olsen
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December 2023
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RECAP SCRS Brings New IDEAS to the Table for a Better Tomorrow In order to create a better collision repair world, we have to go beyond what is known as status quo. Being open to new ideas – thinking outside the boxes that we are otherwise accustomed to – is part of not only keeping up with the changes that come about, but staying ahead of them. As has been a favorite feature of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education (RDE) series at SEMA for a number of years, this year’s IDEAS Collide Showcase once again brought 12 new voices to the stage to share brief 10-minute messages designed to inspire all in the audience to start thinking differently. Instead of closing out the week’s RDE series, the IDEAS Collide Showcase kicked things off this year. “The idea is to get us to think beyond what we know today, to think beyond the status quo,” stated SCRS Executive Director Aaron Schulenburg as he opened the discussion. “We have a slate of speakers who have never been on this stage before. To tell an audience about a grand idea in only 10 minutes is not an easy thing to do. We feel it’s important to find new
Aaron Schulenburg
20 December 2023
voices every year who bring in something new to highlight.” Ben Simmons of Gravie relayed his journey from moving away from unsatisfactory and unaffordable health care benefit plans toward one that redesigns the whole picture, in order to “build a health plan that everyone can love. We set out to redesign health insurance to make it better for members and for small employers like yourselves.” “We believe the future of health benefits has to walk with the consumer end-to-end on their journey through the healthcare system,” Simmons declared. Passionately sharing his own experiences, Michael Bradshaw (K&M Collision) gave the audience proof that creating a company culture is really the key currency that invests in a staff who will not only stay long term, but will go above and beyond in their performance while doing so. “We see employee potential as a cup to be filled, not to be drunk from,” Bradshaw explained. “Fill their cups, and they will become leaders.” From instituting a four-day work week, allowing his employees extra time with family, to leadership coaching and supporting the personal and professional goals of his staff, Bradshaw has created a company that not only retains employees but keeps them motivated to do more. “If I can make my employees’ lives better, I did my job,” Bradshaw stressed. For the first time in IDEAS Collide history, two people came up on stage at once as Richard Desvogues and John Ascheman of 3M Collision teamed up for “Being Burdened with the Burden of Proof.” As former field adjusters, they challenged the audience to consider the changes the insurance companies have brought forth over the past few years by going to more
Michael Bradshaw
virtual claims as an opportunity to grow. THe pair encouraged the audience to continue to ask to be paid for things, insisting eventually there will be a turn around. Another duo – Ryan Weber and Marc Brune of Mentor Mentee – proposed that the best way to influence young people in the collision repair field is to mentor them. Tracking their progress, holding them accountable and supporting them will lead to success. Andrew Batenhorst (Pacific BMW Collision Center) set out to make repairers question everything they’ve ever known about estimating with his presentation,
Bing Wong
Think outside the box.
BY ALANA QUARTUCCIO
Andrew Batenhorst
Tracy Dombrowski
“Death to the ‘Estimator’ Role.” He strongly believes this is the key to bring positive change to the industry. Bing Wong (Collision Builders) shared his enthusiasm for growing one’s business through acquisitions, encouraging everyone in the audience to consider how to go about it. Research and understanding what one is buying is important; therefore, he advised that one invests the time into “having someone do a normalization process to see what you are buying. You don’t want to spread yourself thin.” 3M’s Jason Garfoot demonstrated that there are better ways to improve cycle time in one’s paint booth. He challenged repairers to think about how many cars come through their booth per day, and how making improvements by minimizing downtime to increase refinish hours can amount to more dollar signs for the shop. “One more car per day can mean an additional $384,000 per year,” Garfoot claimed. Collision Advice’s Tracy Dombrowski shared personal experiences supporting her claims that good culture is quite a useful tool. People want to be heard and have a voice in their work environment. “Never have a meeting without everyone on the team having spoken, and be sure to thank people for their contributions,” she advised. “They will feel they can ask questions, and when you do that, this powerful thing will happen in your business. These are the things that will help you thrive and not survive in our business.” While a 10-minute timeframe didn’t allow Shaughn Kennedy (SPARK Underwriters) to provide a bill sheet, he still managed to address “Creating a Build Sheet for Your Garage Liability Insurance” by reminding business owners to take the time to review their business insurance. “Let’s face it: as shop owners, you are busy.
Alex Crays Krays Alex
You are worried about the front end, money coming in, your people. Your commercial business insurance renews once a year. By the time you think about it, the renewal is a week away, and you have no time to redo it.” He advised owners to take the time to read policies, ask questions and take them back to their agent to review. Last but certainly not least, collision instructor Alex Crays (Career Technical Education Center) took the stage to promote hope for this industry when it comes to increasing the amount of collision technicians coming on board. It comes down to thinking differently and changing the way things are done. Cultures change from generation to generation. He’s seen it through his own experiences, and he’s learned from it. The theory that this generation wants everything handed to them is false, according to Crays. “I have students back home who want to work, and they want to learn. I am proud to launch them into this industry.” He advises his students to play the long game. Working in this industry will pay off big time if time is invested, he teaches them. “It’s a profitable and respected industry. There is a lot of money to be made, and it’s a nice fulfilling career. It’s not that these young people who are coming in are lazy; they just want to be treated in a different way.” H&D
Executive Director’s Thoughts SEMA week is unlike anything else we do. Personally, I noticed a lot of enthusiasm for our industry and for what’s next. It was an air of gratitude for the community that’s been created around SCRS, CIC and SEMA, and what I also crave for our local community. - Jordan Hendler
December 2023
21
RECAP
A Spotlight on Education: Highlights from SCRS’ Repairer Driven Education Series Year after year, the Society of Collision Repair Specialists (SCRS) never falters in its commitment to provide an effective educational program to help today’s repairer get ready for tomorrow. SCRS’ Repairer Driven Education (RDE) series at SEMA 2023 was most certainly no different. Some of the industry’s top names came in poised and ready to share their knowledge to make sure that collision repair professionals left Las Vegas ready to put the resources, business solutions, technology updates and thensome in place at their shops. Many aspire to be leaders, but few actually understand what leadership truly is. Industry icon Mike Anderson (Collision Advice) helped RDE attendees get a firmer grasp on “Building Operational Leadership” as he shared his favorite leadership lessons on how to improve an organization, how to share key lessons with your team and how to make them stick. He defined leadership as “organizing a group of people to achieve a common goal” and acknowledged that leaders may or may not have formal authority. According to Anderson, great leaders are trusted, and they inspire others. They take time to explain why, they can admit when they’re wrong, and they use data to affect change. Leaders also understand the power of words and choose their words wisely. They know how to mentor and are willing to delegate responsibilities, and they build others up by praising progress. Because great leaders recognize the importance of accountability, they set clear expectations and hold themselves and others accountable. Leaders in management roles are careful about who they hire, and they always make sure to share visions of improvement with everyone involved in bringing those visions to life. Anderson was joined by a panel of four such leaders – Casey Lund (Collision Leaders), Ron Reichen (Precision Body & Paint), Andy Tylka (TAG Auto Group) and Michael Bauman (Diehl Auto Group) – who shared their experiences and insights on building, managing and supporting teams. Is your poor phone etiquette killing
22 December 2023
your business? Collision Advice’s Tracy Dombrowski made her SEMA speaking debut with “Phone Etiquette and the Power of Mystery Shopping,” emphasizing that today’s customer service experience must be extraordinary because “nobody notices normal.” She reminded attendees that customers do not WANT a shop’s services; they NEED those services. The vehicle owner is already dealing with a negative experience (an accident), so shops have to work extra hard to turn that negative situation into something more positive. Their experience begins the moment the customer first interacts with your brand, typically online, which makes it imperative that you control that initial interaction. Dombrowski shared four key principles to providing an extraordinary customer experience: personalization, competency, convenience and proactiveness. “Personalized interactions let customers know that your company cares about them and their problems. To be competent, a customer support professional must have a strong knowledge of the company and its products, as well as the power to fix the customer’s problems. The more knowledge they have, the more competent they become. “Is it radically easy to do business with you?” she asked. “Customers want to be able to get in touch with a customer service representative through whichever channel is the most convenient for them.” Lastly, Dombrowski explained that a proactive customer experience is about anticipating customers’ needs (or problems) before they are aware of them or need to contact you for assistance. Those principles begin from the moment a vehicle owner calls the shop, so how do you know if your shop is delivering? She recommended using mystery shopping to evaluate your shop’s customer service experience. Often, shop employees fail this test. Dombrowski provided several tips for improving phone etiquette: always speak clearly and slowly, smile, don’t eat or drink, focus on the task at hand, have patience,
use proper titles and the customer’s name whenever possible, and don’t use slang or jargon that the customer won’t understand. Most importantly, LISTEN to understand the customer instead of just hearing what they’re saying so you can respond. There’s a lot of competition in the collision repair world. That is no secret. But many independent shops may lack the secret formula toward building success in this competitive market. BASF’s John Shoemaker set out to show repairers how to go about “Being ‘Elite’ in a Consolidating Market.” Shoemaker started off by outlining the problem body shops face in an MSO world: “It’s hard to get paid for what we deserve when the national MSO is doing repairs for $3,500 or less,” he relayed. “How many of you have a repair in your shop for less than $3,500? Because independents are running about $2,000 to $3,000 higher. When I did my research, I looked at probably 100 shops every month, and one of the things I saw changing was that independent shops are losing repairs for $3,500 or less.” His suggested solution? Shops need to move away from DRPs and begin to focus on OEM certification instead. Whereas it may be considered a stretch to go from DRP-heavy to zero overnight, he suggested shop owners examine their gross profit from insurance carriers, as his research led him to see these figures decrease. Being considered “elite” doesn’t necessarily mean a shop must obtain 10 OEM
John Shoemaker
Training to enhance your shop’s success.
BY ALANA QUARTUCCIO & CHASIDY RAE SISK
certifications. It could simply mean being certified in only two or three. “Understanding your market will help your strategy. Identify the cars in your market and fix those. Being certified means shops have the wording, language and equipment needed to repair vehicles the right way and that makes one’s shop the ‘repair authority.’ Having information from OEs to show that third-party payer why these vehicles need to be fixed a certain way also makes it easier to get the reimbursement needed.” A cultural shift within one’s business is another step toward being elite. Make sure customers know they are at the right place to fix their car, and have every single member of the staff know the shop’s brand and expectation. “If your people aren’t able to identify your brand and promote it, you’ve lost. They are the ones on the front line, at the check-in point, at the follow up, to get those Google reviews. If your employees don’t understand your brand, you won’t get the gains.” Sales are an important component of what shops do, but few shop owners are marketing specialists. Those interested in transitioning from “Padawan to Master” had an opportunity to learn from Micki Woods (Micki Woods Marketing and host of the Body Bangin’ Podcast) during her highly interactive “Marketing Jedi Training,” as she discussed “three top marketing techniques that milliondollar corporations know, understand and implement, yet small business owners aren’t taking into account to market and leverage our businesses.” The first marketing technique Woods explored was the power of creativity. To better understand how to access one’s creative brain, she explained that the limbic brain is responsible for the fight, flight or freeze stress response. While the limbic brain is engaged due to a stress response – which most people live in on a daily basis – it becomes impossible for a person to access their prefrontal cortex and move into a space of creativity, so Woods and attendees brainstormed different ways to reduce stress and access more innovative thinking. Because most decisions, including purchasing decisions, are made based on emotion, the second corporate secret is understanding the power of the emotional connection and using it to positively affect
Yanni Koutmos (EagleMMS), Danyon Kirchner (Zimmerman Auto Body Supplies) and Jim Chargo (BASF) discussing paint and material billing and reimbursement. prospective customers. Insurance companies master this technique along with the third technique, the power of differentiation. Differentiation is the hardest to truly identify, and the class enjoyed a fun but challenging game showcasing what made their business different and if that was truly a differentiator or something that others in the room could also say. Woods impressed upon the group that satisfaction does not equal loyalty, and by putting into place the three top marketing techniques, the businesses in the room would not only increase their sales but also their raving fans. Finding the right formula for business success is another key toward keeping one’s business in a healthy place. Opus IVS’ Frank Terlep set out to challenge business owners to consider planning. Many owners are reluctant to plan due to lack of commitment and/or time, existing company culture and values…and maybe just because planning means change, which is something some might be reluctant to do. In order to grow, one has to be able to stop and look at their business. It’s an action that is of absolute importance. “If you don’t think about it, you won’t get there,” Terlep confirmed. It’s about having to look at one’s shop and see it for what it is, he explained. “One has to be able to look at their baby and say ‘I have an ugly baby,’” so they can work on what they want to fix. Ultimately, “every business that gets started is for sale at the right price,” according to Terlep, who indicated that one must think of the future. Mission statements need to be
examined and updated when the business’ mission changes and the business’ vision statement should also change over time. “Planning is great, but if you don’t execute, it won’t matter.” During a panel discussion moderated by Jim Chargo (BASF), Danyon Kirchner (Zimmerman Auto Body Supplies) and Yanni Koutmos (EagleMMS) set out to talk to repairers about the “New Age of Paint and Material Billing and Reimbursement,” as getting paid properly for the materials is certainly not getting any easier. According to Kirchner, “one of the best negotiating tools one can have is the OEM relationship between your paint company and the manufacturer.” Documentation is the key. Kirchner encourages his shops to have their insurer send his company an email if they get pushback on something, and he will send back every piece of documentation that they need to explain why the products and processes are required. “Especially if you’re an OEM certified shop of any brand, if you’re using one of the five major players of paint, they have gone through a rigorous process to become OEM certified. And there are certain things that you must do to maintain the paint manufacturer’s warranty.” If you missed these sessions live, SCRS will be releasing select RDE sessions virtually for purchase, typically available by the end of the calendar year. For further information or to purchase these sessions or to access education sessions from previous years, visit rde.scrs.com. H&D
December 2023
23
RECAP
Changing with the Times: Thoughts and Processes Transform as Technology Advances Change takes place constantly. That statement is particularly true in the collision repair industry. Whether it’s technology like ADAS, new manufacturers, products, business solutions or processes, the changes that take place today will undoubtedly affect tomorrow. The future lies in the hands of what we do today. If we don’t evolve with it, we won’t grow. That message was laid out clearly during this year’s Society of Collision Repair Specialists’ (SCRS) OEM Technology Summit as OEM manufacturers, insurance representatives, technology specialists and collision repair professionals brought insight to what various aspects of the industry will look like in the future. “Today is about how changes in vehicles and infrastructure will impact our business, what looks different and what we as collision repairers can do to prepare,” expressed SCRS Executive Director Aaron Schulenburg as he set the stage for a full day of thought-provoking discussions. OEM insurance executives hit the ground running to pinpoint what the evolution of OEM insurance looks like. All these automakers shared the common goal that they are looking to align insurance with their brand in order to keep customers happier and loyal to their brand. Andrew Rose, president of General Motors’ OnStar Insurance, shared a deeply personal story of his own experiences in the wake of an accident – as both a young driver and as a father – and spoke of the connectivity GM has had in their vehicles for years and how the various driver assistance systems that set out to prevent accidents and save lives go in part with how OnStar, as an insurer, can help
Abey Abraham
24 December 2023
streamline the claims process. Rose stressed that OnStar is working to the ultimate goal to create an experience for consumers that will lead to insurance love. “The world is changing; people are changing. We have to change with them.” Rivian sets out to change the insurance experience for their consumers by including all parties related to the process. “My team works with the collision repair team and ADAS design to make sure that these vehicles are designed to be repaired,” shared Mike Slattery, head of insurance at Rivian. “We look at all the repair data and see what the most frequent accidents are, and we will work on how to prevent that and/or lower severity.” Slattery showed the audience a video that portrays the vehicle jerking as per the front view camera and then witnesses the impact full on via the rearview camera. “You can see the timeline of what happened. When the collision warning went off, when auto braking started, before the driver hit the manual brake to make sure the Rivian stopped before it hit the car in front of it. The data shows us exactly what happened.” With their insurance program, Toyota seeks “better, faster repairs and happier customers,” according to Rob Spencer, president of Toyota Insurance. He shared a tale of a woman who experienced an accident with the new vehicle she received as a college graduation gift. The repair was done with non-OEM recommended parts as per the insurance company’s recommendation and never functioned in the manner it should have. When it came time for a new vehicle, the
Bertrand Rakoto
Andrew Rose
Mike Slattery
woman chose another brand. “We spent time investing our relationship with this driver, but she went with another brand. What is Toyota going to do about that? We are going to make it easier and faster to repair those vehicles. We don’t want to become an insurance company. We don’t want to spend time arguing with insurance companies, and we don’t want to lose our customer. “It’s about education and advocacy,” he continued. “We want to guarantee that only OE parts will be used in making repairs to your vehicle.” The three OE insurance representatives claimed all collision repair shops will be able to repair their vehicles. When asked what their biggest goal is, Rose summed it up by saying: “We aren’t in the insurance business to be in the insurance business. We are in the insurance business to keep drivers in GM vehicles. Collision shops repairing our vehicles back to original quality is critical for us.” During “Evolving Automotive Materials,” the audience heard from Ducker Carlisle’s Abey
(L-R): Josh McFarlin, Doug Kelly, Jordan Kreps, Andy Tylka, Mike Anderson and Dave Martin discuss ADAS challenges.
Focusing on the future.
BY ALANA QUARTUCCIO
Abraham and Bertrand Rakoto, who went into extensive detail about what materials are being used in modern vehicles as both ICE and BEV vehicles evolve. As vehicles evolve, automakers are using more mixed materials. That paired with the added weight of batteries, which can weigh close to 3,000 pounds, requires lightweighting, which will “bring the most bang for your buck,” according to Abraham. “We will continue to see more vehicles be made of mixed materials, especially as we move more into electrification,” he continued. “Every OEM has their own DNA for how they use materials.” Following Abraham and Rakoto’s explanation of the use of steel, aluminum, magnesium and other materials in new innovations, Dan Black (Rivian) and Matthew Pitta (Lucid Motors) took the stage to give a thorough overview of the materials that are used in their respective automobiles. With ADAS calibrations being among the most prominent technological innovations in vehicles on the market today, the final session featured Doug Kelly (Burke Porter Group), Jordan Kreps (Snap-on Tools) and Josh McFarlin (AirPro Diagnostics) who dove into the development, operation and function of their respective scanning tools. Following their presentations, Andy Tylka (Midwest ADAS/Tag Auto Group), Mike Anderson (Collision Advice) and Dave Martin (DCR Systems) joined them to talk about common challenges and questions repairers are likely to face. Repair shops in possession of the right tools but lacking the knowledge to use them correctly was a shared concern among the panelists. Anderson pointed out that tool manufacturers want to push their product, but there has to be concerns about whose hands they fall into and if they have the proper training. Martin pointed out many out there may never even intend to properly learn how to use those tools. For the repairer who wants to begin doing calibrations, McFarlin suggested starting with diagnostic calibrations. “If you want to have a toe in the water, find a way to step into it,” he stated. “Everyone is doing diagnostics. Start with that. Generally speaking, it doesn’t have any tool requirements.” If one isn’t ready, he suggests it’s not necessary to make a large investment just yet. A strong advocate for OEM parts, Anderson asked Kelly, Kreps and McFarlin how important having OEM approval is to their development. Each agreed it was a key component. H&D
2023
CONGRATULATIONS TO THIS YEAR’S WINNERS!
BodyShop Business Single-Shop Executive of the Year Award: Greg Solesbee (Carstar Hayden) Multi-Shop Executive of the Year Award: Charlie Drake (Classic Collision) NABC: Changing and Saving Lives Award: Shawn Crozat (G&C Auto Body) Collision Industry Conference Volunteer of the Year Award: Petra “Collisionista” Schroeder
Petra Schroeder (third from left) surrounded by former CIC Chairs and WMABA Executive Director Jordan Hendler (far left)
Collision Repair Education Foundation (CREF) Fueling the Future Awards: Pam Watson (Albert Kemperle), Tony Russo (Volkswagen Group of America) and Mark Allen (Audi of America) I-CAR Jeff Silver Memorial Award: Zack Beck (GEICO) Russ Verona Memorial Award: Clinton Body Shop (Clinton, MS) CIECA Outstanding Contribution Awards: Frank Phillips (Rivian) and Jake Rodenroth (Lucid Motors) Chairperson’s Award: Bill Brower (Solera) Electronic Commerce Company Award: OEConnection Society of Collision Repair Specialists (SCRS) Affiliate Association Award: Auto Body Association of Texas (ABAT) Lifetime Achievement Award: In memory of John Mosley (Clinton Body Shop) March Taylor Kina’Ole Award: Kye Yeung (European Motor Car Works)
(L-R): Barry Dorn, Amber Alley, Brenda Yeung, Kye Yeung and Aaron Schulenburg. December 2023
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COVER STORY
2023 WMABA GOLF OUTING HIGHLIGHTS Oak Creek Golf Club
Upper Marlboro, MD
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PPG Team 1 (18A): Randy Nappier, Randy Bartmess, Mark Pitts
2 PPG Team 2 (18B): Tim Kouneski, Kyle Middleton, Patrick Boero, Chris Kates
3 Wheels On Site Team: Chris Pappas, Mark Zavacky 4 BASF Team 1 (17A): Ricky Rios, Bejan Modarressi, Thad Green, Sean Jennings
26 December 2023
5 BASF Team 2 (17B): Zach McCauley, Kris Bobbitt, Mike Webster, Rob Brunner 6 Axalta Team: Andrew Karolick, Chris Aktalay, Bob Stevens, Jacob Autrey 7 Hertz Team 1 (11A): Desiree Porquet, Evan Peiffer, Travis Heffler, Nico Cimino 8 Hertz Team 2 (11B): Brayden Rasnake, Alex Vucco, Cece Parker, Tom Keeney
Golfing together again.
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9 AkzoNobel Team: Ian Fair, Tim Ebright, John Bolick, Steve McMahon 10 NCS Team 1 (13A): Ralph Kozielec, Jeff Steinbach, Charles Lipford 11 NCS Team 2 (13B): Luis Noyola, Luis Gonzalez, Jeff Delcid, Jeff Juarez 12
Chesapeake Automotive Equipment Team: David Sullivan, Geoffrey Spangler, Justin Pacheco, John Ryder
13 Sherwin Williams Team 1 (14A): Joe DiGiacomo, Hadley Blue, Peter Luu, Luke Fussy
14 Sherwin Williams Team 2 (14B): Ryan Vallejos, Edward Vallejos, Brandon Meyer, John Bannister
15 BAPS Team: Robert Sumner, Kris Burton, Garland Knoblock
December 2023
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COVER STORY WMABA would like to thank the following sponsors for making our 2023 Golf Outing a success:
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LEVEL 1
1. Tournament Winner: Sherwin Williams Team 1 2. Second Place: NCS Team 1
LEVEL 2 BAPS Auto Paints & Supply Certified Automotive Parts Association
FinishMaster National Coatings and Supplies
4. Longest Drive Winner Edward Vallejos (pictured with Jordan Hendler) 2023 Hole Sponsors: Hammer & Dolly Magazine Rosslyn Auto Body Thomas Greco Publishing WheelsOnSite
3. Third Place (Randomly Drawn): NCS Team 2 3. Closest to the Pin Winner: Jeff Delcid (pictured third from right)
Closest to the Hole Sponsor: Dorn’s Body & Paint
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28 December 2023
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Wholesale Parts
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INDUSTRY
ADVICE
ASK MIKE:
Which KPIs Will Drive Success in 2024? This month, we “ASK MIKE” for his thoughts on the most important key performance indicators (KPIs) that shops will need to focus on in 2024. We at Hammer & Dolly hope you find the 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 future issue. Hammer & Dolly: We’re almost at the start of another year, which is typically when shops refresh their operations and focus on the next 12 months. What are some of the biggest KPIs that they will need to focus on in 2024? Mike Anderson: Google reviews is one KPI that people need to focus on as they move into next year. You’re going to start to see Google online reviews take the place of a lot of CSI [Customer Satisfaction Index] surveys. Based on some work I do with Nissan and other OEMs, Google reviews are tied into certified shop locators. Shops also need to continue monitoring their financial KPIs and their car counts. Trends show that frequency is declining even as many shops have backlogs. It’s important to monitor how many cars you’ve been doing this year versus last year or in previous years. Monitoring your capture rate is important as well. Market when you’re busy so that you stay busy. Shops also need to monitor their customer experience – and the KPIs for that – and not just blow customers out the door because they’re booked up for three weeks or three months right now. H&D: I tend to believe that people will post a negative review more readily than they’ll post a positive one. How can shops better incentivize customers to leave positive reviews? Are there particular practices that appear to be more successful than others? MA: If you’re not getting a lot of Google reviews, the first thing you should question is whether you’re really providing an extraordinary experience. People go online to post reviews to do one of two things: complain about you or tell people that you did something amazing. You could say, ‘Well, I’m not getting any complaints through Google.’ That could be true, but are you doing anything extraordinary that would make someone take the time to say, ‘Hey, this place was 32 December 2023
amazing!’? I have a presentation through Collision Advice called ‘Be Extraordinary’ in which I discuss the difference between customer service and customer experience. Customer service is how we treat the customer, but customer experience is how they felt they were treated. Obviously, there are companies that make it easier for someone to give you an online review. One is called Podium, and CCC recently rolled out a ‘Book Online’ feature that can be tied into your Google Business listing. H&D: In the September 2023 “Ask Mike,” we discussed why it’s critical for shops to investigate ways to strengthen soft skills on the front end. What are some specific KPIs for that side of the business? MA: It’s not so much a KPI, but I really believe in doing employee reviews every year just to make sure that my employees are happy or to see what their performance was over the past year and whether there are areas where they lack experience or need training. I would call that ‘ESI’ or ‘Employee Satisfaction Index.’ It’s about making sure that your team is happy. Your ESI ultimately dictates your CSI. If your employees love you and love working for your organization, they’re going to be your biggest fans and go the extra mile for your customers. The way to determine your ESI is to either have a third party or an outside company survey your employees or do employee reviews where you can spend some one-on-one time with them. H&D: Obviously, there are standard and very important KPIs that any collision repair business will need to focus on moving forward, but are there any areas where shops tend to spend too much time on at the expense of other key areas of their business? MA: Sometimes, people step over $100 bills to pick up pennies. They get focused on some of the wrong things. I 100 percent believe that you should focus on and monitor paint and materials profit, but what you spend on materials is less than five percent of your sales – parts is 40 to 43 percent of your sales. Some people will grind away on their paint and materials profitability but have $25,000 in outstanding parts credits that haven’t been followed up on. A lot of shops neglect the parts area. People will say they don’t want to hire a parts person because they’re too heavy on admin, but I go to their shops and see their body technicians checking in or mirror matching their parts. That body technician could be producing revenue and gross profit for those shops if they had somebody to check in those parts. Sometimes, people run their offices too lean – they think they already have too
Preparing for the new year.
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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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