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AUT M TIVE Serving The new englAnd ColliSion And MeChAniCAl repAir indUSTry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
July 2015 U.S.A. $5.95
www.grecopublishing.com
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2 July 2015
New England Automotive Report
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CONTENTS
July 2015 • Volume 13, No. 7
DEPARTMENTS VICE PRESIDENT’S MESSAGE 8 | The Importance of Job Costing by Adam Iokam
INSIDE AASP/MA by Jacquelyn Bauman 16 | Member Benefits: Comfort as Customer Service 17 | Meet the Board: Alex Falzone TRAINING OPPORTUNITIES 19 | I-CAR Calendar of Events LOCAL NEWS 21 | Past AASP/MA President Appointed to ADALB by Joel Gausten
NATIONAL NEWS 24 | I-CAR Gold Class Shops Showcase Improved Length of Rental VENDOR SPOTLIGHT 26 | Service Delivered with First Auto Group
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by Jacquelyn Bauman
FEATURES
LEGAL PERSPECTIVE 30 | The Effect of Aftermarket Parts on New Car Warranties: Putting Repair Shops Between a Rock and a Hard Place
COVER STORY 40 | UNTANGLING THE WEB: TIPS & TRICKS FOR A BETTER ONLINE PRESENCE
by Jim Castleman
by Joel Gausten
EQUIPMENT AND TOOLING 36 | Tools in Your Budget
180BIZ FEATURE 48 | BEEN FIRED LATELY?
by Jacquelyn Bauman
by Rick White
ALSO THIS ISSUE 7 | CASINO NIGHT SAVE THE DATE
18 | AASP/MA MEMBERSHIP APPLICATION
10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR
54 | INDEX OF ADVERTISERS
14 | AASP/MA SUSTAINING SPONSORS New England Automotive Report
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AUT M TIVE STAFF
July 2015 Wednesday, July 8 AASP/MA Annual Golf Outing 8am-4pm Charter Oak Country Club 394 Chestnut St., Hudson, MA Tuesday, July 28 Board of Directors Meeting 5:30pm-9pm Doubletree Hotel 5400 Computer Dr., Westborough, MA
PUBLISHER
ART DIRECTOR
Thomas Greco (thomas@grecopublishing.com)
Lea Velocci (lea@grecopublishing.com)
DIRECTOR OF SALES
MANAGING EDITOR
Alicia Figurelli (alicia@grecopublishing.com)
Jacquelyn Bauman (jacquelyn@grecopublishing.com)
EDITOR
PRODUCTION
Joel Gausten (tgpjoel@verizon.net)
Donna Greco (donna@grecopublishing.com)
PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2015 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com/IStock Photo.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA EXECUTIVE COMMITTEE PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks
AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard
AASP/MA CHAPTER DIRECTORS NORTHEAST CHAPTER DIRECTORS Alex Falzone Kevin Kyes SOUTHEAST CHAPTER DIRECTORS Michael Penacho Darlene Andrade MIDSTATE CHAPTER DIRECTORS Tom Ricci Ray Belsito WESTERN CHAPTER DIRECTOR Peter Langone
AASP/MA EXECUTIVE DIRECTOR
FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG
Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org
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VICE PRESIDENT’S MESSAGE
The iMporTAnCe oF Job CoSTing There is a startling – and frankly, a little terrifying – statistic going around the industry from jobbers that something like one percent of shops bring them comparative numbers through job costing. Whether that number is exact or approximate, it is upsetting to hear. When shops don’t know what their actual costs or profits are on a job-to-job basis, they’re actively throwing away money. I cannot think of another industry where this problem is so pervasive. Knowing your numbers is so vital to running a business, yet it’s something in which our industry is severely lacking. What causes such a problem? In my opinion, it’s the fact that for many shops in our area, it’s a case of a technician trying to run a business, as
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opposed to a businessman trying to run a body shop. Many of us have the background in vehicle repair, but not in business management. What kind of detriment does this have on our bottom line? Perhaps most importantly, the absence of job costing often causes a devastating ripple effect in your shop. By losing money here, it affects your ability to pay your techs more and to invest in training, certification and technology, all of which are important factors in keeping your livelihood afloat in this ever-evolving industry. As an example of what I’m talking about, say a tube of seam sealer costs about $100. If you use half of that tube on a job, are you going to accept six bucks for it? There has to be proper
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reimbursement for materials used, plus there has to be room for profit. No one is in this field for the charity of it. It is important for shops to feel empowered and to look into job costing. There are many different avenues that shop owners can explore. For example, I know of certain paint manufacturers that help through supplying job-costing software. There are also Microsoft Excel spreadsheets that can help manage your numbers. Personally, I use a management system that can help you get so granular on your costs of doing business that the information covers not only specific job costing, but also healthcare benefits, uniforms, etc. This aids in seeing exactly what the job costs you against
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what you bill the insurance company. It’s important to remember that your shop is a business first. One of the best benefits of AASP/MA membership is the community through which we communicate and learn from one another. The best resource for your business is a network of supportive peers. If you think that job costing is something you can improve on, please attend a meeting or reach out to one of your Board members. We are here to help you and improve this industry. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Adam Ioakim is the co-owner of Hogan & Van Auto Body in Medford, MA. He can be reached at (781) 436-0366 or adam@hoganandvan.com.
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A MESSAGE FROM THE EXECUTIVE DIRECTOR
AASp/MA: we Are CoMMiTTed To ChAnge. Are yoU? Dear Members, This is an exciting time of change and renewed strength for AASP/MA. Over the last several months, we have been working with legislators and regulators to bring about serious changes on behalf of the auto body industry. Our Legislative Committee, led by Chairman Peter Langone, has begun to meet with key legislators and our bill sponsors to discuss our filed priority matters. As you are aware, AASP/MA has filed five pieces of legislation this year. Throughout the summer, we will continue to meet with these legislators to encourage an early hearing date for our legislation. All updates and hearing notices will be posted to our website and sent out through our newsletter channels. Please continue to look at those for more updates. AASP/MA has also been invited to participate in the Commonwealth Automobile Reinsurers’ (CAR) full review of their Performance Standards. As you may recall, AASP/MA was successful last year in getting an interim change to the Performance Standards, which eliminated language that insurers typically used to suppress the Labor Rate. At the time of this writing, the Legislative Committee is reviewing the Performance Standards to identify language that is detrimental to our industry. Should you have any suggestions or questions, please feel free to reach out to Peter Langone (Langonet Auto Body & Frame) at (413) 786-3574. I am pleased to announce the recent appointments by Governor Charles Baker of three new members to the Auto Damage Appraiser Licensing Board (ADALB): Rick Starbard- Owner of Rick’s Auto Collision in Revere, MA. Past President of the Alliance of Automotive Services Providers of Massachusetts (AASP/MA) and Massachusetts Auto Body Association (MABA). Rick has over 27 years of experience as a Licensed Auto Damage Appraiser in the Commonwealth. William Johnson- Owner of Pleasant Street Auto Body and Repair and Hampshire Towing in South Hadley, MA. Current president of the Statewide Towing Association. Bill has previously served as Selectman for the Town of Granby,
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as well as on other boards within the Commonwealth. Bill has over 35 years of experience as a Licensed Auto Damage Appraiser in the Commonwealth. Lyle Pare- Auto Damage Appraiser/Unit Supervisor at Plymouth Rock Assurance Corporation, where he has been employed since 1995. At the beginning of his career, he was trained in the auto body profession. Lyle has over 29 years of experience as a Licensed Auto Damage Appraiser in the Commonwealth. On behalf of AASP/MA’s leadership, we congratulate these individuals on their appointments and we look forward to working with them in their new roles. ADALB meetings are recorded and made available to our members through the Members Only section of our website at aaspma.org. In order to keep bringing about change and “building the success of the auto repair industry,” we need YOUR support. If you are not a current member of AASP/MA, you are missing out on vital conversations that are not only shaping the industry, but also making significant changes for your business. This month we are offering a DISCOUNTED membership of $200, which will be applied to the remainder of the year for all non-member shops. Please join today and become a part of the only organization fighting for the rights of the auto body industry in Massachusetts. Sincerely,
Jillian Zywien, Executive Director MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.
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AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!
AASP/MA NEWSLETTER SPONSOR
WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor! 14 July 2015
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INSIDE
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
by Jacquelyn Bauman
MEMBER BENEFITS
CoMForT AS
CustomER sERviCE No one likes to wait. Sitting around and waiting past a promised deadline can cause even the most patient people to break. Many waiting rooms across a variety of industries try to combat this. Television, WiFi, magazines or food (such as donuts, cookies or bagels) all serve as tactics to keep customers at an even keel emotionally while time passes. Many of these are ineffective and leave individuals in a state of limbo that can eventually cause them to snap, which can result in an irate tirade at the place of business, a strongly worded online review or simply just the loss of return business. For shop owners in Massachusetts, Steve Elkinson of Promotional Partners, Inc. and Comfort Source has developed a program to help ease the waiting room situation in your shop and make for an exceptional customer service experience – a discounted massage chair purchase or rental program. Elkinson began his rental massage chair company, Comfort Source, over 12 years ago. He had massage chairs running in approximately 30 malls around the Northeast before growing the company to Myrtle Beach, Charleston and Orlando. At its height in 2008, approximately 500,000 people used the massage chairs in their various locations. Eventually, Elkinson received a call from the owner of a car dealership who had used one of these
chairs and asked if he could design one for his business that took coupons he distributed rather than money. This process was successful for a while, but the coupon process became cumbersome, requiring the attention of the front desk clerk whenever someone wanted a quick massage. In searching to fulfill the needs of his clients, Elkinson polled some of them for advice on how to make the product more focused to their needs. He took this information to his factory in Taiwan and asked them to make a chair with these specifications: smaller, didn’t require coupons or money and simple (no reclining function or remote control, just a basic switch and automatic shut off). This program was such a success that now over 50 dealerships and shops in the New England area have these massage chairs in their waiting areas. One shop that has taken advantage of this program is Al Brodeur’s Auto Body in Marlborough, MA, the shop run by AASP/MA President Molly Brodeur. “I think we’ve always been a customer-centric facility; in our expansion, we have a much larger office and lobby waiting area,” explains Brodeur. “I think in a desire to stand out from other repairers, our goal was to show our customers how much we appreciate them, because without them, we wouldn’t have the opportunity to expand. We put these chairs in our
For more information on these massage chairs or how to get one for your business, visit theultimatewaitingroomchair.com, call (508) 942-5833 or email Steve Elkinson at steve@comfortsourceinc.com. 16 July 2015
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‘Customer Care Center’ because they are beautiful, comfortable and inviting. The chairs are self-sufficient and require no maintenance. The customer sits down, presses a button, the machine runs and then shuts itself off. It’s worry free and no hassle. Just plug and play.” For AASP/MA members, the program is simple. For purchase, chairs start at $1,250 and include shipping and handling. AASP/MA members can also rent chairs for $89 a month for one chair or $149 a month for two chairs. All rentals are on a month-to-month basis with no long-term commitment. This breaks down to less than three dollars per day, which, as noted by Comfort Source marketing materials, is less than the cost of coffee and donuts. For those who are still unsure about the program and its benefits, there is a two-week free trial period available on behalf of the company. Although the price for these chairs, either to rent or to own, is very low for such a high value, there may be shops that aren’t sure that their budgets allow for such an expense. In this instance, Brodeur encourages shops to look into offsetting their costs through co-op or through vendor or supplier sponsorship. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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MEET THE BOARD:
by Jacquelyn Bauman
“My brother-in-law, a transplant surgeon, got in an accident and brought his car to me to fix. When he saw the result, he grabbed my hands and said, ‘I wish I had hands like you.’ He fixes people every day and saves lives, but he was so impressed with how I reconstructed something that looked beyond repair. He said, ‘After I fix people, they don’t always look that good afterwards.’ I think that says something special about our profession.” This story, told with humility to New England Automotive Report, belongs to AASP/MA Board member Alex Falzone, owner of Guy’s Auto Body in Billerica. Falzone, who claims he got into the industry “basically by accident,” began his tenure in the collision repair industry as a tow truck driver for a dealership, working as a body shop helper in between tows. Thanks to his enthusiasm and work ethic, the boss of the dealership took a liking to him and eventually gave him a position helping the painters as a prepper. He then worked his way up from prepper to painter to body technician. His brother, who worked at Guy’s Auto Body under the previous owner, alerted him to the fact that the shop owner was soon looking to change careers, citing too much insurance interference in doing what was right for his customers. “I thought I might as well try all of this on my own, thinking, how bad can it really be? And that was basically it,” he recalls. “I started under Guy’s supervision and within six months, he left and the shop was mine. I’ve been in charge of it since 1980.” This is why the business is still named Guy’s Auto Body. “When it was first turned over to
Falzone’s fun-loving and humorous demeanor aid in his daily business.
Alex Falzone
me, I didn’t have the money or the resources to change the signage, letterheads and everything,” he explains. “And besides, I thought Guy sounded like a friendly, welcoming name.” For almost his entire career as a shop owner, Falzone has been a member of the local collision repair associations, and has specifically been an AASP/MA Board member for the last five years. He believes AASP/MA is the closest thing the industry has to a union, and that same clout is what the field needs. “I believe it’s necessary to band together for common causes,” he explains. “There are things we can change that will benefit all shops throughout Massachusetts, DRP or not.” He urges shops to get involved, noting that only through banding together and creating strength in numbers will anybody take them seriously. “It’s so important to be involved. For example, we support lawsuits throughout the country,” he states. “One of the biggest things to having success is the number of troops. You don’t want to go into battle unless you’re prepared, and having a number of shops and their employees standing behind you is the best type of readiness. The political powers that can help us make change only look at numbers. If you’re not helping out, you’re standing alone and hurting yourself, as well as your employees.” When thinking about the industry in the next 10 years, Falzone is nervous as to what a lack of camaraderie could mean for the overall tone of the field. “It’s unfortunate, but I see the future of collision repair as maybe brand-specific. There are going to be shops that only work on this brand or only work on that one,” he predicts. “The costs associated with upgrading your shops are astronomical. Between rapidly increasing technology and a lack of skilled smart labor, it’s going to be difficult to keep things together.
With the rate of reimbursement we’re working for right now, convincing smart kids to get into this field is going to be very difficult. And why should they? Many shop owners are out for only themselves and not their employees. As long as shop owners try to go it alone, the rate will not keep up with other trades and we will lose smart, potential technicians to other fields.” Alex’s special elixir to this possible upcoming dilemma? Join AASP/MA and be part of the progression, not regression. “The associations help to provide us with knowledge, and knowledge is power,” he observes. “When I first joined the association, I had no idea how invigorating it was having knowledge of the laws, or what was right and wrong. We are constantly bamboozled by appraisers on what the regulations say. They really don’t know the laws themselves because they’re only told one side of things. It has empowered me to be able to stand my ground and say, ‘You’re wrong; this is what the law actually says,’ and the association provided me the documentation to prove it. So I can say to them, ‘Go and ... well, as my mother would say, fly a kite.’ AASP/MA has made it possible to stand up for myself and get paid properly for what I do. Before AASP/MA and MABA before that, I had no idea how I was being taken advantage of by our friends and so-called partners.” When not in the shop, Falzone dedicates his spare time to his music, describing himself as a “struggling musician.” A drummer with a passion for percussion as strong as his love of fixing cars, he enjoys playing anything from jazz to hard rock. Even with over 35 years in the business, Alex still enjoys every day in the shop. He explains to newer shop owners that, “If you love what you do and you do quality work, it will pay off in the end. And don’t forget to say thank you.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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2015 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
As a member of the Alliance of Automotive Service providers of Massachusetts (AASp/MA), i will abide by the association’s bylaws and code of ethics. i understand that membership in AASp of Massachusetts is non-transferable, and i must remain current with my dues in order to be a member in good standing. i understand that if i discontinue my membership that i must immediately cease using any association promotions, logos or materials. Additionally, i understand that as part of my AASp of Massachusetts membership, i will receive New England Automotive Report, the official publication of AASp of Massachusetts, faxes, emails and other mailings.
*** PLEASE TYPE OR PRINT LEGIBLY *** BUSINESS INFORMATION: Mr.
What benefits motivated you to join AASP of Massachusetts?
Mrs.
Ms.
Business Representative Name:
________________________________________________________
____________________________
Business Name ____________________________________________
PERSONAL INFORMATION:
Street Address ________________________________________________________________________________________________________ Street
City
State
Zip
Mailing Address ______________________________________________________________________________________________________ Street
Phone Number ( E-mail Address
City
)____________________________________ Fax Number (
State
Zip
) __________________________________________
________________________________________ Web Site Address ____________________________________________
Enrolled By (Name and Address) ________________________________________________________________________________________ MEMBERSHIP TYPE
Name ____________________________________________________
REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop
Nickname ________________________________________________ ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2016)
Total Due ....................................................................................$395.00 SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other)
NEW! Political Action Committee (PAC) Donation ...............$_____
Check or Cash Credit Card:
Visa
MasterCard
LIST OTHER SPECIALTIES ____________________________________ ________________________________________________________ Just like good tools and equipment, membership in AASP of Massachusetts is a valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services. Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.
Card Number: __________________________________________ Expiration Date: ________________________________________ Signature: ______________________________________________ Date: __________________________________________________
For oFFiCe USe only Check number ______________________________Check date ________________________Check Amount ______________________________ date Joined ______________________________Member number ______________________next bill date ______________________________
12 post office Square, 6th Floor • boston, MA 02109 phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible. 18 July 2015 New England Automotive Report
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TRAINING OPPORTUNITIES
CoUrSe SpoTlighT: AdheSive bonding I-CAR has enhanced its Adhesive Bonding course with a training experience that now offers an engaging “Live Demo.” The Live Demo portion of the course includes first-hand experience of adhesive bonding using two-part adhesives. Steps for an adhesive that is applied to bare metal, and steps for an adhesive that requires a primed mating surface, are given. In addition, this well-rounded course provides information on adhesive bonding materials, specific work and handling time, bond line and clamping considerations, cure time recommendations and more.
CoUrSe SpoTlighT: AlUMinUM pAnel repAir & replACeMenT Should an aluminum exterior panel be repaired or replaced? It depends! There are many considerations to take into account when making decisions on aluminum panels. Being able to properly assess damage and repair or replace exterior panels requires understanding the properties, characteristics, design and construction of aluminum. Making the right decisions at the right time can play a role in improving KPIs like cycle time and CSI. Students will leave this course equipped to tackle this different – not difficult – material.
in Massachusetts July 15, 2015 Aluminum Panel Repair & Replacement July 16, 2015 Adhesive Bonding July 30, 2015 Plastic & Composite Repair All classes will be held at Fuller Auto Body (Auburn, MA) Visit www.i-car.com for more information. For more information or to request a specific course, please contact the following I-CAR Committee Chairs:
Chairman Josh Fuller: jfuller@fullerautomotive.com
CoUrSe SpoTlighT: plASTiC & CoMpoSiTe repAir
Vice Chair of Training Justin Forkuo: justin@290autobody.com
With the continued use of plastics and composites on many of today’s vehicles, collision repair professionals are seeking efficient ways to repair collision-damaged vehicles made from these materials. Given the vast amount of materials available and their differing characteristics, plus the many viable repair options, the most up-to-date knowledge and information is critical to ensuring a complete repair. After completing this course, students will be able to identify different types of plastics by their characteristics and determine the level of plastic identification that is required to perform a repair, understand correct preparation procedures for plastics and much more.
Boston Committee Chair Molly Brodeur: molly@albrodeur.com North Shore Committee Chair Gary Brown: gary.b@kwikauto.com South Shore Committee Chair Carl Garcia: carlscollision@aol.com Western MA Committee Chair Andrew Potter: apotter@northamherstmotors.com
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LOCAL NEWS
pAST AASp/MA preSidenT AppoinTed To AdAlb there are big changes happening with the massachusetts Auto Damage Appraiser Licensing Board (ADALB). At the ADALB’s June 2 meeting in Boston, attendees were introduced to three new Board members appointed by Massachusetts Governor Charlie Baker. These appointees include former AASP/MA President Rick Starbard, a Commonwealth collision repair veteran with more than three decades of professional experience. He replaces outgoing ADALB member Carl Garcia. A 1981 graduate of Lynn Vocational Technical Institute, Starbard launched Rick’s Auto Collision, Inc. (originally Rick’s Auto Body) in Revere in 1983. In 1996, he accepted an offer to become a collision repair instructor at Lynn Tech, serving in this capacity for the next 13 years. Under his guidance, the school’s collision repair program gained National Automotive Technicians Education Foundation (NATEF) certification and earned a reputation for training some of the industry’s best and brightest repair professionals. Still an active owner at Rick’s Auto Collision (with help from business partner James LeBlanc), Starbard is an ASE-certified Master Technician and has achieved Platinum designation through I-CAR. Currently, he serves as an elected member of the Lynn School Committee. In addition to building a long-lasting reputation in his community for quality collision repairs, Starbard is equally known for his active involvement in inter-industry associations and endeavors. His extensive history as an industry leader and advocate includes a 12-year stint on the Board of Directors of the Massachusetts Auto Body Association (MABA) and more than a decade on the Board of AASP/MA (including five years as president). Additionally, he served as president of AASP National, an organization of collision repair and automotive service professionals with over 10,000 members across the country. His activities also include participating on the joint operating committee for the Database Enhancement Gateway (DEG; degweb.org), a free service created to help technicians address labor time issues with the industry’s major Information Providers.
A licensed appraiser for 27 years, Starbard is looking forward to an active and fruitful experience on the ADALB. “We’re fortunate that we have the Board, and we’re fortunate that Governor Baker sees the value in it,” he says. “I also think he’s made a great decision with the recent appointment of Insurance Commissioner Daniel Judson.” In his new role with the ADALB, Starbard looks forward to representing the voices of independent shop owners in the Commonwealth who have chosen to operate without insurance company referral contracts. “I’ve never had a referral contract in the history of my shop, so I feel that I can truly be an independent voice for the collision industry and consumers in carrying out the regulations,” he says. “I’ve spoken to past members who have felt the pressure of being referral shops and the impact that their decisions may have on their businesses because of those contracts. By having people sitting on the Board who don’t have those contracts, there is no fear over what an insurance company may do to us if we vote a particular way.” Above all, Starbard hopes to use his time on the ADALB to better educate repairers and insurers on why state regulations are in place and the importance of following them during the vehicle repair process. “Shops need to realize that their battle is not with XYZ Insurance Company,” he says. “If something is not being complied with in the regulation, the ADALB is not there to go after the insurance company; it’s there to address the individual appraiser who wrote the appraisal. I think educating shops as far as the role of the Board and how to properly file a complaint will go a long way in helping the industry.” The other new ADALB members are Bill Johnson (owner of Pleasant Street Auto Body and Repair and Hampshire Towing in South Hadley, MA) and Lyle Pare, an auto damage appraiser and unit supervisor at Plymouth Rock Assurance Corporation. They replace past Board members TJ McClements and David Krupa. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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NATIONAL NEWS
i-CAr gold ClASS ShopS ShowCASe impRovED LENgth oF RENtAL The benefits of being an I-CAR Gold Class shop just got greater. According to a new I-CAR “white paper” detailing the Q1 2015 Enterprise Rent-A-Car Length of Rental (LOR) report, Enterprise’s data shows that Gold Class shops with well-trained technicians can repair vehicles faster, and as a result, shorten car rental days – both important factors to reducing the total cost to repair. While the national industry average LOR was 11.5 days, Gold Class shops averaged just 10.2 days, an 11-percent improvement. Further, the top 500 Gold Class lengths of rental (LOR) performers turned those repairs around in only 7.9 days, or a 31-percent improvement. Isolating the 100 top-performing Gold Class shops, the average LOR drops to 6.5 days for a 43-percent improvement. “As repair processes change with the onset of new materials and technology, it is imperative for repairers to be able to adapt to these changes,” said Enterprise RentA-Car Assistant Vice President Frank Laviola in a prepared statement. “Failure to do so will result in increased repair time and compromised quality. The data shows Gold Class shops beat the overall industry by 1.3 days, and the top shops cut repair time down to almost half of the industry average.” The analysis examined data for the first quarter of 2015 from collision repair shops in the US with which Enterprise conducts business. Enterprise serves the $35 billion collision repair industry, comprising over 34,000 facilities. Enterprise compared the market-average LOR for repairable vehicles across all shops in their database versus those shops that have earned Gold Class recognition from I-CAR. According to a May 22 I-CAR press release, research studies involving shops where technicians received I-CAR training revealed improvements in four key performance indicators: Shops improved cycle time (how rapidly they completed safe and quality repairs) by more than 14 percent. They improved touch time (the number of hours a technician worked on a vehicle) by nearly 34 percent. Frequency of supplements for necessary repairs overlooked in the estimate dropped by 11 percent. Customer satisfaction increased 5 percent. 24 July 2015
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Improvements were even greater than the averages in those shops that approach training strategically, or those shops that possess a “Learning Culture.” John Van Alstyne, CEO and president of I-CAR, tells New England Automotive Report that the need for properly trained collision repair shops – and the I-CAR Gold Class program – is stronger than ever. “Every year in the United States, somewhere between 75 and 100 new vehicles are launched that have some sort of change going on which is of significance to the collision repair industry,” he says. “It could be a new vehicle debuting, or it could be a significant re-design of a vehicle or have to do with significant re-engineering of stuff that’s going on underneath the body panels...How do you keep abreast of the best practices on how to repair those vehicles if you’re not training? These vehicles are changing, and in some cases, quite significantly. “We need to get real as an industry,” he added. “We have technology shifting that requires new thinking. At the same time, you can generate a meaningful ROI by adopting a commitment to education and knowledge.” To earn recognition as a Gold Class facility, collision repair facility employees must achieve and maintain a high level of role-relevant training that addresses industry specified knowledge requirements across each of four key collision-repair roles: estimator, non-structural technician, steel structural technician and refinish technician. The complete I-CAR “white paper” can be read online at tinyurl.com/q9kgv8g. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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VENDOR SPOTLIGHT by Jacquelyn Bauman
Service Delivered with It is constantly busy at First Auto Group (Ruggiero Family Dealerships). With three dealerships and three equally large wholesale parts operations, things can get a little hectic. First Hyundai opened before all of the other dealerships, back in 2008. They currently house the largest inventory around and deliver all through Rhode Island to just south of Boston. Between both of their delivery vehicles, they offer same- or next-day delivery, with hotshot delivery available if necessary.
The next in line to open was First Ford in June of 2012. The dealership covers a 40-mile radius and hosts three delivery vehicles to serve their customers. The newest of the Ruggiero family is First Chrysler/Dodge/Jeep/Ram, who have only been open for about 18 months. They are a newer distributor, and also house a large inventory that is delivered within a 40-mile service area. They boast a same-day turnaround, with next-day options available if the part ordered is not in stock.
“We think it’s important to teach the value of OE parts compared to poorly fitting aftermarket parts,” says Fixed Operations Manager Harold Cimorelli. “Because of this, we will price match most body parts for our clients.” In a time when aftermarket parts are so pervasive in the industry (and putting a damper on some wholesale operations), Cimorelli cites the Ruggiero Family Dealerships’ exceptional customer service as the reason they stay ahead.
Prompt & Dependable Delivery
Experienced and Professional Parts Team
Ask about our Competitive Prices
Fax Line: 508.699.4761 Parts Hours: Mon-Sat: 7:30-5:00
Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00
Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00
www.firsthyundai.com
www.firstfordma.com
Parts Line:
508.699.4700 270 East Washington St. North Attleboro, MA 02760
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Parts Line:
774.888.6666
292 William S. Canning Blvd. Fall River, MA 02721
Parts Line:
508.316.8410 280 East Washington St. North Attleboro, MA 02760
www.firstchryslerma.com
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“It’s the way we do business at First Auto Group,” he says. “Our wholesale operation has flourished because we have a history of taking care of our customer’s needs. We always return messages, we have a liberal return policy and we will not over-promise what we cannot deliver. Plus, we are always seeking out new accounts and going out of our way to get the parts to our customers in a more-than-timely fashion.” Although they’ve only been around within the last decade, the First Auto Group wholesale operations have seen their fair share of changes in the industry. “Over the years, more and more aftermarket companies have flooded the market with parts. Used parts have become a much bigger part of the insurance picture,” Cimorelli outlines. “The Internet has also provided wholesale customers with all the
information they need at their fingertips. Because they’re better informed, we make sure we price match and train our staff to keep up with all of the changes taking place in the information age.” As part of their dedication to customer service, the wholesale operations offer monthly specials and deals on specific parts as determined by the director. For example, the First Chrysler/Dodge/Jeep/Ram dealership offered 10 percent over cost on value line brakes for the month of June; for the month of July, they will offer 10 percent over cost on A/C parts. As the weather heats up and A/C units start to break, this will surely come in handy for a number of repair shops.
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
First Auto group: Where inventory meets professionalism.
For more information on the First family of dealerships, visit their respective websites: firsthyundai.com, firstfordma.com and firstchryslerma.com.
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LEGAL PERSPECTIVE by James A. Castleman, Esq.
The eFFeCT oF AFTerMArkeT pArTS on new CAr wArrAnTieS: puttiNg REpAiR shops BEtWEEN A RoCk AND A hARD pLACE At least on its face, the Magnuson-Moss Warranty Act – a federal statute enacted in 1975 – prevents car manufacturers from voiding their warranties just because an aftermarket part is used in the repair of a vehicle. The problem with the Act for collision repair shops is that there are exceptions and, perhaps more disconcerting, a repair shop is required by law to warranty all parts that it uses for repairs, whether they are OEM, aftermarket, LKQ or rebuilt, and whether or not the car manufacturer’s warranty has been voided. So what does the relevant law really say? What are you to do if an insurer specifies the use of a replacement part that you believe to be inferior, and what are your rights and liabilities relating to the use of that part? Some BASicS oF the mAgnuSon-moSS Act Car manufacturers have traditionally looked for ways to force car buyers to use dealer shops to make repairs, both to try to assure business for their dealers and also to try to assure that the manufacturers can sell more OEM parts. Years ago, it had been a common tactic for manufacturers to condition new car warranties on a requirement that all maintenance be performed by dealer shops. As the result of protests by consumers and by independent mechanical shops – as well as other warranty problems unrelated to car repairs – Congress enacted the Magnuson-Moss Warranty Act. The Act covers many issues, but in particular includes a provision that prohibits car manufacturers from tying their warranties to the required use of dealer shops or OEM parts. Despite this, a major exception does apply if the required service or part is provided for free. (That is why so many cars now come with free routine maintenance for a period of time.) For collision repair shops, the provisions of the Act are both good and bad. On one hand, the statute makes it clear that car owners have the absolute right to use independent body shops to make collision repairs. On the other hand, the statute makes it appear that aftermarket parts, no matter how good or bad their quality, can be used for repairs without affecting the car manufacturer’s warranty. The Magnuson-Moss Act is enforced by the Federal Trade Commission (FTC), which takes the OEM-tying 30 July 2015
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prohibition to heart. In its printed consumer materials regarding car warranties, the FTC says, “Simply using an aftermarket or recycled part does not void your warranty. The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket or recycled part.” As recently as April of this year, in an action involving BMW and its MINI Cooper division, the FTC was able to obtain a Consent Decree that prohibits BMW from making certain statements in its owner’s manual that imply that using a non-BMW/non-MINI part may void the car’s warranty. the excePtionS Major problems for repair shops result from certain exceptions to the general provisions of the Magnuson-Moss Act, both explicit and implicit. First, the Act specifically allows a car manufacturer to require the use of an OEM part as a condition of maintaining a warranty if the car will not function properly when a non-OEM part is used. This exception is actually less problematic than it first seems, since in order for a manufacturer to claim it, the company must apply for an advance waiver from the FTC. In its application, the manufacturer has the burden of establishing through scientific evidence that the use of a non-OEM part will make the car unsafe to drive. In reality, few waivers are sought, and fewer are granted. The second, less direct (but more problematic) exception is that car manufacturers can legitimately disclaim warranty coverage for non-OEM parts used in repairs, and can also disclaim warranty coverage and liability for defects or
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damage caused by the use of non-OEM parts. After all, if the car manufacturer did not make or supply the part, then it should not have to make any guarantees relating to the part. Technically, this is not a true exception to the MagnusonMoss Act, since the use of the non-OEM part does not actually void the general car warranty. But the effect may be the same, since the car manufacturer does not have to stand behind the non-OEM part and does not have to be responsible for problems caused by it. The actual manufacturer and/or supplier of the aftermarket part may have liability, but that is not the car manufacturer. The second exception can present significant problems for a repair shop that uses an aftermarket part that is inferior to the OEM part it replaces, as well as for the shop’s customer. There may be damage related to the part, but can it be established that the damage was caused by the part, or was it really caused by a defect in the car itself? Which entity should a claim be made against for reimbursement? Are the car manufacturer and the aftermarket supplier going to be pointing fingers at each other? What if the damage was the result of both a car defect and a defect in the part? The answers to these questions are not always clear. the ShoP’S WARRAnty oBLigAtionS Whether or not an OEM warranty is voided by the use of an aftermarket part, under Massachusetts law (and the law of most, if not all, other states), a collision repair shop is required to warranty all parts that it uses in making repairs. At the very least, the part must be “merchantable” (i.e., it must work for a reasonable period of time) and it must be fit for the particular purpose for which it is being used. These warranties are implied by law for all consumer transactions, and it is illegal and unenforceable in Massachusetts for a repair shop to disclaim these warranties. If a part is defective or causes damage, then the shop is liable for replacement of the part without cost to the customer, and is also liable for any damage caused by the part. This does not mean that the shop cannot seek reimbursement from the part’s manufacturer or from the supplier. But between the shop and the customer, the shop has direct responsibility. And while it is generally accepted in the collision repair industry that most OEMs and their dealers will stand behind their parts, it is sometimes more difficult to seek redress against an aftermarket manufacturer in some far off foreign country or their local supplier. Further, if it is not clear whether the problem was caused by the part or by a defect in the car itself, it may be next to impossible for a shop to get reimbursed, because it is not clear which parts manufacturer should be paying.
this occurs and the repair shop believes that the particular replacement part is likely to be inferior, what is the shop to do? At the very least, the shop should make itself well aware of what the governing regulation really says. First, the shop should be aware of the strict requirement of the regulation that the replacement part must be of “like kind and quality” to the OEM part being replaced. That means that the part must be “of equal or better condition than the pre-accident part.” If the replacement part does not meet this test, then the shop should not accept the use of the part, and the insurer should not, and legally cannot, insist on its use. Second, the shop should be aware of other exceptions in the regulation to the general rule, in particular: (1) The replacement part should not be used if the operational safety of the vehicle might be impaired. Note that the regulation does not say that the shop has to know for certain that safety will be compromised, only that it might be. (2) If an insurer specifies a particular part and “reasonable” efforts to find it have been unsuccessful, then the part should not be used. Is that part readily available, or will it take three weeks to get here from some other part of the country or world? Is it in stock? If the part can’t be found or if it will take a long time before it arrives, it should not be used.
WhAt iF A cuStomeR’S inSuReR WiLL onLy PAy FoR An AFteRmARket PARt? Under Massachusetts insurance regulations, if an insured vehicle is damaged, the insurer is usually required to pay only for a rebuilt, aftermarket or replacement part. If New England Automotive Report
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LEGAL PERSPECTIVE (3) The replacement part should not be used if use of an OEM part will result in the lowest “overall” cost of repair. Again, note that the regulation does not say that the OEM part itself must be cheaper, only that the overall cost of repair will be less. Is it going to
take a lot more time to prepare and fit that aftermarket part, resulting in a greater overall cost? If so, then the part should not be used. (4) The replacement part should not be used if the damaged vehicle has no more than 20,000 miles, “unless the
pre-accident condition warrants otherwise.” So unless the car was a wreck before the accident, if it has the specified mileage or less, do not use the aftermarket part. Also, be well aware that insurers are required by regulation to list the supplier for all aftermarket parts that they specify on their appraisals. If you buy the specified part from that supplier and it turns out to be unfit, then the insurer is responsible for restoring the part to usable condition. If the part has to be replaced, then the insurer is responsible for replacement costs, including freight and handling. Although the regulation requires that the shop and the insurer must agree that the part is unfit, do not be afraid to claim your rights in this situation. If the insurer agrees with you, then they are responsible. If they disagree with you and the defect is obvious, the insurer may be engaging in unfair claims settlement practices, which could make them subject to penalty damages if sued. Beyond what is in the regulation, there are some additional steps to consider trying to protect yourself. One is that, although you cannot fully disclaim your parts warranty, you may be able to at least limit it for aftermarket parts. This should be discussed with your lawyer, to see what he or she suggests. But you may be able to limit the time for which you provide the warranty, and may be able to limit what costs you are going to be responsible for. If you are going to do this, you must do so in writing. Additionally, if you believe that an aftermarket part is inferior and the insurer will not back down and agree to pay for an OEM part, it may be worth talking to your customer. This can be done either to have them contact their insurer directly to try to get the company to pay, or to see if the customer may be willing to pay out of their own pocket for the difference in cost. If explained properly, this could
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EQUIPMENT AND TOOLING by Jacquelyn Bauman
As a body shop owner, it can be difficult to make a reasonable profit for the time and effort that you put into your business, especially with insurance companies dragging you through the ringer by refusing to adequately pay for repairs. Yet cutting costs around the shop is nearly impossible without jeopardizing the integrity of the repair. Fortunately, industry experts and associations are constantly looking for ways to improve business practices for those who wish to participate. At the January 2014 Society of Collision Repair Specialists (SCRS) Open Meeting in Palm Springs, Toby Chess and Kye Yeung of the SCRS Education Committee demonstrated “Cool Tools for Today’s Vehicles,” which highlighted a range of standout products that were displayed at past SEMA Shows in Las Vegas. When the Open Meeting ran again in 2015, a second installment of the presentation, this time titled “Kool Tools,” spotlighted not only new and innovative tools for automotive repair businesses, but affordable tools as well. The presentation highlighted 12 products that range across the industry from heavy duty truck repair to painting. “One of the things we found interesting during our first presentation was that the lesser the cost of the product, the more popular it was,” explained Kye Yeung. “When you look at bigger, more expensive products, the bigger purchases can be overwhelming. We wanted to expose some of these more manageable products to those who may not have the opportunity to walk through SEMA.” There were 12 products that were specifically spotlighted during “Kool Tools,” including the DJS Universal Dolly System, which can be used on any vehicle over rough and uneven surfaces or onto and off of frame racks. The system also included attachments for pinch weld clamps for Tesla vehicles. “The creators of this product were in the process of developing a dolly system for Tesla,” Yeung explained. “They would be the only authorized vendor for Tesla, which we took into account. They’re constantly innovating. It’s always nice to see new products.” Some of the items on the list made it there due to Yeung and Chess’s personal experiences with them in their own shops. “It’s always better to promote a product you’ve already used and that you know how it works,” expresses Yeung. One of the products that he personally recommended was the Clay Mitt from Presta. The mitt is “five times faster than a clay bar, up to four times cheaper and if it drops on the ground, you can just wash it and reuse it.” 36 July 2015
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Images source: tinyurl.com/Kool-Tools
ToolS in yoUr bUdgeT
Left: the DJs Dolly system comes with an array of attachments so it can be used on any vehicle in any situation. Right: the presta Clay mitt came to the list through Yeung's personal recommendation.
Dent Fix was one manufacturer that had a number of different products make it to the list, including their welding clamps, specialized rivet drill and perfect gap gauge. “Pricing was a key component in which tools made the cut,” he says. “There are some tools that are required for certification, and the high price usually comes along with that. The great thing about these Dent Fix products is that they work just as well but they’re more affordable. For example, a particular gap measuring tool set from a specific manufacturer is required for Aston Martin repair. It costs around $1,000. The Dent Fix Perfect Gap Gauge has a felt-covered magnet for panel attachment so that the technician can use it hands-free, and it costs about $50.” For full information on all of the products featured during this presentation, a slideshow is available online with contact information for each particular manufacturer. The presentation is available at tinyurl.com/kool-tools. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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COVER STORY
by Joel gausten
In 2015, there is much more to being a successful automotive business than just properly repairing or servicing a vehicle. To successfully compete in today’s marketplace, you need to have your finger on the pulse of ways to market yourself on the Internet. While having a website might have been enough to create a Web presence 10 years ago, the current online landscape encompasses everything from videos to social networking pages. This month, New England Automotive Report takes a look at some of the tools available to the industry – and some do’s and don’ts when it comes to using them to your best advantage.
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Mobile Matters Perhaps the most important event in recent Web marketing history occurred on April 22 of this year, when Google implemented a new algorithm in their search function that could knock any website that isn’t mobileready off the all-important first page of search results. In order to make their Web presence as current and mobileready as possible, several Massachusetts shops have been working with AASP/MA benefit provider Scott Gonnello of Gonnello SEO (gonnelloseo.com) to get up to speed on adapting to mobile technology. In his mind, the key to success is not having a secondary website designed just for mobile, but having only one properly designed site that can fit on any device. “Some shops are spending money on a second mobile version, which is crazy because you should have the ability with your website to make it responsive,” he explains. “Responsive software works on a full laptop and desktop, and if it’s on a mobile or tablet, it reduces [the content] to fit properly.”
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As more and more shops work to improve their existing websites, Gonnello warns against the multitude of socalled “Web developers” who have sprung up in recent times. In these Wild West days of Craigslist, there are plenty of fly-by-night “designers” who offer the world but deliver next to nothing of genuine value. “Everybody [on Craigslist] has just enough information to maybe squeak by and maybe get you into trouble,” he says. “It’s very much like the DJ industry; if you have an iPod, a speaker and a microphone, you’re a DJ. That doesn’t mean you’re good, but you can be a DJ. With things like GoDaddy and WordPress and the ability to pay $40 for a theme that makes a site look nice, everybody is a Web developer. They’re not. Those are the ones you want to stay away from, because if the site is not set up properly, it’s not going to be as mobile-friendly or searchable. It might look better than what the shop had before, but it won’t be a reputable website.” Of course, the primary goal of any collision repair/automotive service website is to help sell that business’ services to customers. If your website is not showing up in Google searches, you are wasting your time and money. One common way that shop websites fail is by lumping all the information about their services on one page instead of spreading it throughout the website. “A lot of shops have one page for ‘services,’ where they will list everything in one spot,” offers Gonnello. “If Google is looking for somebody who just does ‘bumper repair,’ and you have that mixed in with 20 other things, you’ve diluted it with all the other services. But if ‘bumper repair’ is its own page on your site, it should show up as a page that’s only talking about bumper repair. That would be considered by Google to be more of an ‘expert’ page than the other ‘services’ pages that don’t have things broken up. You should have a full page for each service you have.”
The Power of Video While a well-functioning website is critical to building a valid online presence, it is only one part of the puzzle. Currently, YouTube stands as the second most-used search engine in the world – and happens to be owned by the first, Google. It’s time to make some videos, folks. “YouTube is a phenomenal way of getting your message out there, providing that it’s done properly,” Gonnello says. “Every shop should have a YouTube channel if they can do that within their timeframe and budget.” Before a shop does anything with a video, they need to figure out exactly what that video should convey. Should the clip offer an overview of the shop’s services, or should it discuss the dangers of steering and other
practices? First and foremost, longtime auto body industry videographer Lee Emmons (Absolute Perfection Media) suggests that in addition to producing content that educates consumers on keys issues such as parts usage and their right to choose the repair facility, shops should also focus on things like certification, training and repair capabilities. “Start from the perspective of a customer who wants the process to go as easily as possible and just wants to know what to do next,” he says. “They probably don’t want to get too bogged down in legal jargon or minute specifics of procedures. It’s really important to not just do short documentaries that talk about the problems of the industry, but instead have testimonials from customers of any manufacturer that a shop really focuses on about the quality the shop is able to bring. Never lose sight of the fact that you’re talking to customers, and that customers want to feel good about coming to your shop. If you just rail against stuff that’s going wrong in the industry, that’s not a good marketing message.” As far as selecting the right person to deliver your message, Emmons believes that real customers could tell your story far more convincingly than paid talent. “If you have someone delivering a testimonial, it’s really hard for an actor – even if he or she is really good – to communicate what somebody can do in an in-depth testimonial when they haven’t had an awesome experience at your shop,” he explains. “Even though regular customers are not as polished, they sound real. They will often come up with things that you could not have thought to ask them, because it was their real experience.” Additionally, Emmons cautions against using background music or television/film clips that are subject to copyright. “If you use any kind of licensed music, you’re pretty much going to be stopped immediately,” he states. “There is software on YouTube and Facebook that immediately identifies a copyrighted song.” Emmons suggests that those who still want to include special visuals or music should check out sites like revostock.com and audiojungle.net that offer usable, royalty-free content for a nominal fee. There are also sections on YouTube and fellow video-hosting site Vimeo where users can find music for free and/or purchase. Above all, any shop looking to post a video online needs to ensure that whatever is portrayed in the piece represents correct repair operations and procedures. “You want to make sure that you’re doing things right and that other people in the industry aren’t going to look at the video and scrutinize the techniques you’re using,” Emmons says. “You want to present yourself as well as you can in whatever you put out there online and on social media, because there is someone who might foul New England Automotive Report
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up the comments section underneath that with something negative. You want to make sure you’re following any EPA or OSHA requirements and that what you’re posting visually is beyond reproach.”
Facebook: Fact & Fiction Of course, no discussion on marketing in 2015 can be complete without taking a look at Facebook. But is it really the amazing tool that so many believe it to be? While it is true that Facebook currently boasts more than 1 billion active users, don’t think for one second that Facebook will instantly expose your company to even someone down the street. “Facebook only shows one percent of your feed,” Gonnello says. “They want you to spend more to ‘boost’ it. But if you have [your video] on YouTube, you can post it on Facebook and you can also get found in search engines or YouTube’s search function. It increases your
exposure at least three times by doing it properly through YouTube and then posting it elsewhere. “Google search results love to put in videos,” he adds. “If you have a good-quality video that is written properly with tagging, there is a good chance it is going to show up on the top page for whatever specific topic that video is about.” In Emmons’ mind, success on Facebook is a combination of putting in a little bit of money and being as interesting and interactive as possible. “I think Facebook has to be seen as a paid marketing platform,” he offers. “There does have to be some investment in it to get people to follow the page, and then get posts to show to those people. It’s less expensive than other forms of paid advertising. Facebook also has its own algorithm like Google does. The better and more interesting your posts are - and the more that people organically interact to it – the more people that Facebook will deliver your posts to. “Even if you’re only putting in a small amount of money into a post that you want to be seen, once people start interacting with it, it will start showing up in their News Feed and branch out from there,” he continues. “You just have to prioritize and give yourself a relatively small monthly budget for Facebook and then figure out which posts you really want people to see and which ones you think people are really likely to interact with and genuinely want to comment on and reshare. With that, you’ll be able to improve the percentage of people who see your posts, and you can target posts to people in your service area and get new people to know about you that way.” Clearly, there are several exciting areas for an auto body or automotive service facility to explore when it comes to online marketing. The tips in this feature are really just the tip of an exciting iceberg. Dive in and have fun; you’ll be amazed by the community of customers you can build with the touch of a computer key. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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180BIZ FEATURE
been Fired lATely? by Rick White
when was the last time you were fired from a job? i’ll bet you’re puffing out your chest and saying to yourself, “i’m proud to say i’ve never been fired!” or “i haven’t been fired since i was a kid!” And you couldn’t be further from the truth! when your customer decides to never come back, you’ve just been fired! let’s take a look at the major reasons your customers leave and what you can do about keeping your job. 1. you don’t do what you say. If you are frequently getting fired by firsttime customers, you really need to look at this. They’re coming in with an expectation based on preconceived notions founded on what they’ve heard or seen about you, and you’re not meeting those expectations. The key to removing this stumbling block has two parts. First, take the time to call first-time customers who didn’t come back and ask them what their expectations were and what they felt they received. This will help you identify and remove anything that’s creating mismatched expectations. Second, be proactive; as part of your interview process with a new customer, ask questions that will help you identify their expectations. Once you know their expectations, it’ll be easier for you to meet or exceed them.
important person in the whole world. The most dangerous mindset you can have is thinking that losing this customer is not a big deal because you have plenty of others. The reality is that businesses fail one customer at a time. The easiest way to fix this issue is to keep focused on the fact that you’re in the relationship business first and foremost. Whatever it is you do, sell or provide to your customer, it’s just a means to create those relationships. According to Jeb Blount, author of People Buy You (a book I highly recommend reading), every customer subconsciously asks themselves five questions:
2. you don’t make your customer feel important. This is the top reason your longtime customers are leaving you. I understand that you’re busy and have a lot on your plate, but so does everybody else. It’s your job when you’re interacting with your customer to make them feel like the most 48 July 2015
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a. Do i like you? Understand that being likable doesn’t guarantee a sale; it just means you’ve got your foot in the door. If they like you, you’ve got their attention. If they don’t like you, they move to the next business that does what you do. Think about the last time you dealt with a business where you didn’t like the salesperson. What did you do? That’s right! You left that business and went to their competitor. b. Do you listen to me? Your ability to listen to your customers is the single most important way to show that you care and make the process of sales about them and
what they want. Remember the old adage spoken by President Theodore Roosevelt, “Nobody cares how much you know until they know how much you care!” c. Do you make me feel important? Your ability to make your customer feel like the most important person in the world starts with your ability to really listen. It’s also where understanding and empathy begin. As your conversation progresses, your customer can see you want to help them, and that makes all the difference in the world. d. Do you get me and my problem? This is where your listening skills and your customer’s concerns intersect. When you can show them with your words, tone and actions that you understand their issue and what their goals are, you’re almost there. e. Do i trust and believe you? If you’ve done a great job on their first four questions, your customer will absolutely extend to you a level of trust and belief. Now it’s time to go and earn that trust and their business. As your relationship grows, so does their trust in you and what you say, which makes doing business
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easier over time. But be careful not to overestimate that relationship you have. I’ve seen many front counter people get lazy and shortcut the proven steps they followed to create their raving fan. Investing less time or putting a higher priority on a new customer and their work instead of your great customer because you think they’ll understand are sure signs that you’re taking the relationship for granted. Instead of shortcutting, you need to continue doing exactly what got this relationship to the point it’s at today.
About rick white & one eighty business Solutions Rick White is a managing member of One Eighty Business Solutions (180BIZ), a Virginia-based coaching, training and business solutions provider to the automotive and truck repair industries. Rick’s clients consider him a trusted advisor, helping them to increase profits and free time while reducing their stress. If you would like more business tips and thoughts just like this, please visit our Facebook page at www.facebook.com/180biz. 180BIZ provides affordable, down-toearth, one-on-one business coaching with no long-term commitments! To see how we can help you and your business, please email us at info@180biz.com or call (540) 833-2014.
3. you don’t make it easy for your customer to do business with you. Don’t be like the businesses I see that make it hard for their customer to do business with them. Ultimately, your goal is to be there when your customer needs you, not when you need the customer. Your customer may not be able to pick up their vehicle by 5pm. Don’t make your customer conform to your schedule. You need to make it easier to do business, otherwise that competitor down the street that’s solved this issue might just end up with a new customer. I understand you have a life and may have been taken advantage of by a customer or employee, but that doesn’t mean you should punish those who want to exchange money for the services you provide. People are basically good; when treated fairly, they are extremely understanding and gracious. In my example above, I’m not suggesting you stay open 24 hours a day; I am suggesting you have a plan that takes into account a customer picking up his or her vehicle after hours. Whether you’re a salesman, delivery person, automotive technician, service advisor or even a shuttle driver, please remember that, to the customer, you are the company and you’re always on stage being watched and judged. Make sure you keep your customer first and you’ll have an amazing business! MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
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LEGAL PERSPECTIVE continued from pg. 32 N
be an advantageous marketing tool for you. concLuSion The effect that the use of aftermarket parts may have on a new car warranty is a complex issue, and it is not entirely clear what that effect may be. But it is clear that a collision repair shop is required to provide a warranty to its customer for all parts that the shop uses in making repairs, and it is
important for a shop to know what its obligations are regarding those parts, and what its rights and options are as well.
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AUT M TIVE AD INDEX
MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY
Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at
jcastleman@ prclawoffice.com.
180Biz ..............................................................49 Audi Group ....................................................11 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram............52 Balise Wholesale Parts Express ......................6 Baystate Chrysler/Jeep/Dodge ..................35 Bernardi Group ........................................28-29 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................22-23 BMW/Mini of Warwick ................................20 Clay Subaru ....................................................35 Colonial Auto Group ....................................25 Empire Auto Parts............................................9 Enterprise ........................................................27 First Chrysler-Dodge-Jeep-Ram ..................26 First Ford ........................................................26 First Hyundai..................................................26 Ford Group ....................................................53 Future Cure ....................................................32 G&M New England LLC ..............................31 Honda Group..................................................51 Hyundai Group ..............................................38 Imperial Ford ..................................................53 Infiniti of Norwood........................................44 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Linder’s, Inc. ..................................................54 Long Automotive Group ..........................OBC Mazda Group..................................................34 Mopar Group..................................................37 Nissan Group..................................................43 PPG ....................................................................3 Robertsons GMC Truck ................................52 Sarat Ford-Lincoln ..........................................9 Sentry Group ..................................................39 Subaru Group............................................46-47 Tasca Group ....................................................33 Toyota Group..................................................45 Village Auto Group........................................15 VW Group ......................................................50 Wellesley Toyota/Scion ..................................8
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