AASP/MA’s Lucky Papageorg Shares Dragon-Slaying Methods at

As a business owner or manager, the everyday challenges you encounter in your collision repair facility can sometimes seem insurmountable, but those dragons can be slain! A highlight at the NORTHEAST 2023 Automotive Services Show, held March 17-19 at the Meadowlands Exposition Center (MEC) in Secaucus, NJ, was a panel discussion on “Slaying the Dragon: Manageable Actions for Shop Success,” which featured AASP/MA Executive Director Lucky Papageorg along with Charles Bryant (AASP/NJ), Robert McDorman (Auto Claim Specialists), Ron Reichen (Precision Body & Paint Inc.) and Ken Miller (821 Collision; North Haledon, NJ), moderated by veteran journalist Joel Gausten.

The first dragon they tackled was the insurance industry as Gausten asked for insights from shops that have moved away from the DRP model. “Quite a few shops in New Jersey are no longer DRP, and I don’t know a single one that’s unhappy with that decision,” Bryant indicated, and Papageorg agreed that the situation is similar in Massachusetts:

“Shops getting off referral lists are finding that they can keep their customers by educating them. They’re no longer covering the cost of doing business right and allowing insurers to get away with refusing to reimburse them for it.”

When it comes to OEM certification, Gausten asked if shops are just giving up control of their businesses to a different entity, but Reichen suggested that certification is more about brand loyalty. “Vehicles have become so complex. We’re no longer a trade; we’re a skilled profession, and when you embrace that mindset, your entire organization has to reflect that.”

Cycle time always presents challenges, but according to Miller, today’s biggest delays are no longer caused by supply chain shortages. “Getting approvals from the insurers currently causes the biggest delays due to supplements and denials. Self-pays get through the process much quicker.”

Turning to the topic of consumer advocacy, McDorman emphasized the importance of helping consumers understand their rights and the reality of the policies they purchased: “The devil is always in the details. We take customers through the whole process because the more transparent we are, the better outcome we’ll have. Every customer who comes to us is mad and disappointed because they don’t know who to believe, but once we get involved, we’re able to break it down for them. My biggest advice to shops is: don’t be scared to talk to your customers about the issues you encounter because communication and transparency are key. We’re repair professionals and craftsmen who are responsible for people’s lives. We should always educate. It’s not about rate; it’s about safety procedures and processes. Change is not easy, but the only way we can change is through persistent education and data.”

Looking to future dragons that the industry can anticipate down the road, panelists indicated that it’s time for shops to charge what they’re worth, even when that means billing copays to customers. “Change is difficult and hard to embrace,” AASP/ NJ President Jerry McNee acknowledged from the audience. “Fear prevents us from moving forward, but insurance companies rule with fear and intimidation. It’s tough to make these decisions when you’re on an island by yourself, and that’s why attending events like NORTHEAST is so imperative. Educate yourself and then you can educate the insurers. We have to learn and advance as an industry.”

“We encourage what we allow,” Reichen added. “If you don’t discipline a child’s bad behavior, you’re essentially encouraging it. Likewise, if you allow something to go on in your shop, you’re encouraging it to continue. The only way to get it to discontinue is if we stop allowing it!”

AASP/NJ is already working diligently on the plans for NORTHEAST 2024, scheduled to take place March 15-17, 2024 at the Meadowlands Exposition Center in Secaucus, NJ. Visit aaspnjnortheast.com for updates on next year’s event as they become available.