New England Automotive Report November 2022

Taking Back Our Industry

My brother, Zac, and I have been in the collision repair business for over 14 years. When I started out at Full Tilt Auto Body & Collision, I was not aware of the control the insurance industry has over shops, consumers and most importantly, rates that affect both parties. I was admittedly naive to the insurance industry and thought as many consumers do: “Auto body shops just fix the cars and bill the insurance companies, right?” It didn’t take me long to figure out that the labor rates were suppressed and the ability to negotiate them seemed impossible.

Our shop currently participates in one referral program, which allows us to do supplements without waiting for an appraiser to come out. Although we have maintained this one relationship for several years, Zac and I, along with our staff, struggle daily over the decision of whether or not to continue this relationship. The inherent problem is that we know we are contributing to suppressing the rates. The contract which every insurer puts forth in these referral agreements forces US to only take the rate they offer. By accepting this rate with albeit only one insurer, I am part of the problem – setting a suppressed rate.

This is why I never judge any shop owner for their personal business decisions, and AASP/MA will always represent all collision repairers, despite which side of the aisle they sit on. This is an extremely important tenet in the mission statement of the “Alliance” because there has never been a more important time for the collision industry to unite in the face of the rising costs due to inflation while continuing to be reimbursed at a suppressed labor rate.

Instead of wasting time and energy judging others in our industry, we should be directing that energy and time toward

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examining ourselves, our business practices and decisions, and then truly analyzing how we can best improve things for consumers, ourselves and the industry as a whole. We can also direct energy outward toward our customers and become educators by letting them know about the inequity in the rates while still providing exceptional customer service and repair. We can never sacrifice the quality of repair or the customer experience because we are forced to work at a suppressed labor rate.

Many shops have decided to take back their business and charge their customers a “co-pay” much like we are accustomed to when dealing with the medical industry. Most of us do not think twice when we receive a bill for something our medical policy didn’t cover. We just pay the bill. Some of us call and complain or attempt to get an explanation for why things may not be covered but often fall short and accept the bill. Why is the collision repair industry so different? It may soon not be.

This month, AASP/MA will present a seminar designed to educate shop owners, managers and appraisers on many topics, one of which will involve a discussion about when a “co-pay” might be necessary and the best ways to educate customers on the additional cost. All topics discussed will relate to how to take back your business from insurer domination and help your business start to thrive again.

We can take back our industry!

AASP MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617 574 0741 Fax: 973 235 1963 Email: admin@aaspma.org

Fear Can Be a Killer

When we think of the word “FEAR,” several things come to mind. Fear causes many reactions in the brain. Some are positive: Senses and awareness can be heightened. Adrenaline is pumped into your system, which can make you stronger and faster. Conversely, anxiety brought on by fear can have a very crippling effect. It can make you freeze; it can muddle your thoughts and make it very challenging to think clearly. It can become a killing paralysis. The cause of the fear or anxiety evades you, so you cannot readily see the solution, and the anxiety level increases even more.

As this message is written for the collision repair industry and not a group of psychologists, you may be asking yourself what this has to do with you. A simple fact is that we as collision repairers live in a world filled with anxiety and fear. We have so many responsibilities in our chosen profession that unless one walks in our shoes, they cannot truly appreciate the pressures we live with day in and day out. We are responsible to those individuals who select our shops to restore their vehicles to pre-loss condition. We are responsible to our employees, to keep our shop running with continued work coming in. We are responsible for making sure that we provide them with the best and most current training in a shop equipped with the latest technology for today’s vehicles. We are responsible to our customers to act as their advocates in the repair process to ensure they are being properly indemnified by their insurers under the policy they purchased. We are responsible to our own families to provide for them by keeping our businesses open and creating a fair and reasonable income and profit.

The anxiety and fear we feel, whether real or perceived, comes from the fact that unlike other retail businesses, we rely most often on a third party to pay for our services. This third party has interjected themselves into the repair process solely for the purpose of protecting their profits while feigning concern for their policyholders-turned-claimants. Over the years, the insurance industry has gone from working behind the scenes to openly and overtly twisting what is sold as protection to their policyholders to the goal of protecting their own profit margins. Record-setting insurance profits have been reported to have increased over the past

several years. Apparently, these record-setting profits are not enough. Unhappy insurers complain they need additional raises to keep pace with the increases in the cost of running their businesses! (Read about it at bit.ly/InsurerRaises.)

Many years ago, Ina DeLong, who left the insurance industry to start a company called “Policyholders United,” spoke at an auto body association meeting here in Massachusetts. Her opening comment to the group was something along the lines of, “The only thing different between the Mafia and the insurance industry is that the Mafia dresses better.” The Mafia, for all intents and purposes, is defunct and does not carry the influence and fear it once did.

Some would argue that the “business model” the Mafia utilized lives on today in the business practices of the insurance industry. The overriding practice being the use of fear and intimidation. That fear and intimidation heightens the level of anxiety that collision repairers experience and has led many to not necessarily think clearly and to become immobilized and frozen when it comes to making decisions. Or to make decisions which are not in the best interest of the vehicle owner or the collision repair facility. The fear and anxiety, which come from the fear of losing a potential customer because the insurer labels you as a problem shop or not part of their referral/programs, has forced the collision industry here in Massachusetts to the brink of collapse. Shops, which prided themselves in putting their customers first and foremost, were and are forced to be on lists they truly do not want to be on, to work at suppressed labor reimbursement rates and accept “prevailing” repair procedures set by contractual arrangements by the minority of collision shops, not the majority.

The good news is that more and more collision shops and their customers are putting an end to this insurer-created cycle… No longer are shops just taking what is being “given” to them by insurers. They have been educating the customers and creating advocates in increasing numbers. Advocates who no longer look at insurers as the authority in the repair process. Advocates who no longer live in fear of losing their coverage because they demand to be paid properly. These customers are recognizing that a collision shop which is booking out weeks in advance and charging a fair and reasonable labor reimbursement rate must be doing something right. They realize that they need to be a part of the process and that partnering with their repairer can alleviate their anxiety in the long run.

We have recently experienced the first increase in a labor reimbursement rate (provided by insurers) in far too long, but there is a long way to go to truly reach a level of reimbursement which is representative of the expertise and liability collision repairers accept in the repair process. Daily, insurers (both nationally and Massachusetts-based) are raising their rates paid on original estimates as well as when being pressed during the negotiating process. Much of that success comes from the fact that, “You leave me no choice but to charge your insured the difference between my

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ADALB Insurance Reps and Chairman Vote to Ignore Complaints Against Appraisers

Although the Auto Damage Appraiser Licensing Board (ADALB) is tasked with “the regulation of motor vehicle damage appraisers in Massachusetts,” the Board’s past couple meetings have resulted in insurance representatives repeatedly voting against regulating appraiser activities, such as the denial of coverage for OEM-recommended scans, calibrations and seat belt checks…and even some OEM-required procedures according to Board members Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) and Rick Starbard (Rick’s Auto Collision; Revere).

When the Board began reviewing complaints at its September 13 meeting, a familiar pattern was quickly established. In nearly all cases, Starbard or Johnson put forth a motion to move the complaint forward, and while Board member Peter Smith (MAPFRE) consistently voted against that motion, Board member Samantha Tracy (Arbella Insurance) occasionally deviated, allowing the progression of three complaints during this gathering….though it should be noted that her deviations were inconsistent, with votes being cast in both directions for the same alleged offense on different filings. Any abstentions resulted in Chairman Michael Donovan casting a negative vote.

The Board began reviewing its backlog of complaints in June, though very little “review” appears to be going on. In fact, the ADALB dismissed all 20 complaints discussed during its June meeting as well as 25 of the 36 complaints reviewed on July 19. Its most recent meeting saw 27 of 30 complaints dismissed. Combined, 72 of 86 complaints (83.7 percent!) have been dismissed with only 14 complaints moving forward.

If half the ADALB is uninterested in doing its job to regulate appraisers, what’s its purpose?

“We're putting a lot of people's lives at risk by passing these

[LOCAL] NEWS by Alana Quartuccio Bonillo

things on the way that we are,” Starbard stressed. “I hope to God there’s some class-action attorney out there who’s going to look at these vehicles because some legal action needs to be taken here.

“This is absolutely crazy for cars to go out without these mandated-by-the-manufacturers procedures being followed,” he later added. “And when they’re presented to an appraiser, for an appraiser to just arbitrarily deny it or come up with some unrealistic cost to carry it out, that appraiser is a danger on the road. They should be unlicensed as quickly as humanly possible, but we’re giving them carte blanche to do whatever they want.”

“We really need to read the CMRs,” Johnson urged. “Our charge is for the safety of the public, but I don’t feel we’re meeting that standard.”

“No, we’re failing,” Starbard took it a step further. “We’re failing the public. When it pertains to OE-recommended repair procedures, these regulations were written back in the 1980s. That’s when ADAS was unheard of. But now we’re basically dealing with spaceships on the road, and we’re still failing to apply what was recommended back in the ‘80s to vehicles now when it’s absolutely mandatory. We’re still saying, ‘Nah, it’s okay. Let these unsafe things go down the road and risk lives; as long as the dollar count exceeds the body count, we're all good.’ That's what we're saying!”

The ADALB will reconvene on October 26 at 11am. Don’t miss the detailed coverage of this meeting, only available in the October issue of the Damage Report members only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the September 13 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB0922

Boston Community Pays Tribute to Hicks Auto Body

Hicks Auto Body is more than a body shop in its community; it’s an institution.

For 52 years (and counting), the facility has been serving the surrounding Boston community. Everyone who is familiar with the shop knows its founder and owner, Willie Hicks, Sr. The active 85 year old (he still goes into the shop for a few hours, three days a week) has single handedly made Hicks Auto Body more than a body shop – the business is a staple in its community. This goes beyond the shop’s quality work and excellent customer service. It’s Hicks Sr.’s tireless devotion which he has shown the community as an active contributor and participant over the years.

Surrounded by family, friends and hundreds of supporters, Hicks’ lifetime of work was celebrated by the city who renamed the square outside his shop in his honor. Now, when one passes his shop, they can’t miss the sign that reads “Willie E. Hicks, Sr. Path,” which is proudly on display.

“It was a great honor,” recalls Hicks, Sr. “I never expected to see that in my lifetime. I’m glad they did this while I’m still alive. I was able to see it and enjoy it. That was the best part of the whole thing.”

Like he is known to do with most things, Hicks, Sr. put his heart and soul into starting his own business. To save up for his first location, he spent nights and weekends driving a cab. He initially

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opened a body shop with a partner which lasted about three years, then he moved on to a small shop on Columbus Avenue before he was forced to relocate. He purchased the property at 10 Talbot Avenue, Dorchester, and it’s been home to Hicks Auto Body since 1970.

Hicks, Sr.’s mindset of always striving to produce quality work and offering good customer service has led to the shop’s success for five decades and counting. His son, Willie Hicks, Jr., has been on board with him at Hicks Auto Body for the past 28 years and serves as general manager and vice president.

The city sets out to honor those businesses who are the heart and soul of the town and try to make it a better place. Hicks Auto Body is clearly a shining example.

“We always try to help the community as much as we can,” shares Hicks, Jr. “In over half a century, my dad had the opportunity to meet so many people, and certainly people by accident. He’s extremely compassionate; he’s helpful. He’s been an advisor. I’ve seen him reach into his pocket and help folks, whether it’s a kid wanting an ice cream if they are doing well in school or making a meaningful donation to the Boys and Girls Club or supporting charities like the Sickle Cell Disease Association, churches, tennis

centers…I could go on for days.”

Hicks, Sr. has also been active in the auto body community over the many decades he’s been in business. Back in the MABA days under Executive Director Chris Muise, he served as the inaugural secretary for the Suffolk County Chapter when it was first established, serving alongside current AASP/MA Executive Director Lucky Papageorg who was the inaugural president of the MABA Suffolk County Chapter at the time.

Papageorg was pleased to attend the celebration for his longtime friend. He took the opportunity to formally present him with a certificate welcoming him as a member of AASP/MA, which “brought a smile to his face.”

Witnessing the huge support Hicks, Sr. received, which included a number of insurance appraisers, was truly a testament to the shop owner’s character, according to Papageorg. “You don’t usually see the two industries intermingle that way. The fact that Willie means so much to insurance representatives says a lot.”

“It was a really great tribute. Not just to the institution but to the man himself,” Papagoerg insists. “It’s been an honor and privilege to know Willie all these years.”

MASSACHUSETTS

by Alana Quartuccio Bonillo

One would have to be living under a rock to be unfamiliar with the Hertz name and what it means to the automotive world.

All around the globe, the car rental company is known for its motto, “We’re here to get you there.” And that is exactly what they do. Their journey is to take their customers to and from while they experience their own journeys. It all started with a small fleet of Model T Fords back in 1919, and 103 years later, the company has become a household name and one of the top three leading rental car companies in the world.

Headquartered in Florida, Hertz has locations in just about every city with a vast presence in Massachusetts, according to Market Sales Executive Adriana Svigos.

Creating and maintaining good solid relationships with everyone they work with is the number one ingredient in their recipe for success.

That commitment lies in every partnership they have with insurance companies, body shops and the customers they place in their vehicles.

“Over the past few years, we’ve been working to branch out into other segments,” explains Svigos about the company’s growing fleet which also includes cargo vans and box trucks.

“Our number one goal is to provide good customer service to all of our customers and to our insurance partners,” she shares of Hertz’s dedication to driving the best results for all, which includes “always having cars for our customers and making sure they have a good experience.”

Through its various offerings, the company accomplishes what it sets out to do day after day. Whether it’s their pick-up and dropoff services or their introduction of mobile platforms to enhance the experience, Hertz makes things as smooth as possible for customers.

Attributing to the corporation’s longevity is their dedication to “staying up to date with the times.” As the automobile industry evolves, Hertz is now working with advanced vehicles, such as Tesla, as well as growing and building new relationships which are key to their continued success.

Giving back and being an active part of the automotive community is what it’s all about for the Hertz team. In line with this commitment, Hertz is a proud Silver sponsor of AASP/MA’s Vendor Affinity Program.

It’s a two-way street, Svigos says of teaming up with others in the industry. Members of the Hertz team dedicated their time at AASP/MA’s Annual Golf Outing at the Heritage Country Club in Charlton (see page 28 for full coverage), assisting with the Putting Contest.

“Our relationships are so important, and we had an absolute blast at the golf outing. We got to meet many folks we hadn’t had the opportunity to interact with before. Through networking, we hope to create new partnerships down the line. That’s what it is all about.”

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Americans have become more polarized than ever before in recent years.

DRP or OEM-certified facility. Single shop location or multi-shop operator (MSO). Manufacturer or aftermarket parts…Collision repairers have even more reasons to bump heads. Yet, despite the many sources of contention within our industry and society, there’s ONE thing that everyone can agree on: Mike Anderson (Collision Advice) is an amazing human being, and our world would be a much better place if more people emulated him.

Whether you know him personally or have had the pleasure of sitting in one

of his engaging seminars at SEMA, the NORTHEAST®Automotive Services Show or at a local event (as he is known to present in just about every corner of the world) or even if you only know his name via “Ask Mike” features or “Who Pays for What Surveys?” chances are you are a fan too, if not a friend.

Mentor to many, inspiration to even more, Anderson epitomizes the heart and soul of the collision industry, and repair professionals from all over the country weighed in to explain why “We Like Mike.”

“Mike is absolutely genuine,” shared AASP/MA Executive Director Lucky Papageorg. “What you see is what you

get. He’s extremely serious about what he presents because it comes from the heart. Mike wants nothing more than the best for the collision repair industry as a whole.”

Shortly after assuming his role with the association in 2018, Papageorg met Anderson at a Connecticut meeting where he was the featured speaker. “I had heard of him for years prior, so I introduced myself during a break and thanked him for everything he’s done for this industry. In true Mike-Anderson-fashion, he turned it around and said, ‘Lucky P? Your reputation precedes you, and I want to shake your hand!’ It was very humbling that someone of his stature knew who I was.”

Anderson’s knowledge has been invaluable for many throughout the collision industry, but Papageorg finds it especially useful when “he tells you all the different places you can search for information that’s available out there, including owners manuals and some other places you normally wouldn’t think to look. Beyond that, I remember the lightbulb moment when he explained the difference between Asian and American culture regarding the terms ‘recommended’ versus ‘required;’ when an Asian manufacturer calls a process a ‘recommendation,’ it’s a matter of being polite, but they understand that a recommendation IS a requirement. They just don’t think you should have to be insulted into knowing that.”

Josh Fuller (Fuller Auto Body & Collision Center; Auburn) first met Anderson during a 2018 AASP/MA meeting, though he had heard of the Collision Advice giant for years prior. “Mike is dedicated and unstoppable. He’s a fantastic steward to the collision repair industry. He is selfless in his journey providing constant knowledge and education to our industry’s members.”

Anderson’s influence has taught Fuller to “never stop learning,” and his favorite memory is of Mike “keeping it real. He’s taken over our performance group, so it’s been great to listen to his knowledge of the industry and how it’s rapidly changing. In my mind, there is no other person who has his finger on the pulse of the industry like he does. He brings everyone together (OEMs, vendors, shops) to share the same goal of repairing vehicles the right way. The industry is fortunate to have him.”

Molly Brodeur (Al Brodeur’s Auto Body; Marlborough) met Anderson significantly earlier, back in 2006 when she first entered the industry. “In the fall of that year, I attended my first industry event, a day-long seminar with Mike Anderson as the keynote speaker. He was so full of energy, plus he was dynamic and informative. I left that event with a sense of purpose – it was clear the importance of professionalism, training and being a collision repair expert. One of my favorite memories of Mike is from that first seminar when he asked ‘Can I get an AMEN?’ It was so powerful, and to this day, I still remember the energy and heartfelt ‘amens’ being cheered back to him!”

Brodeur has many favorable memories of Anderson since she has “been fortunate enough to attend dozens of his speaking engagements over the years, but if I had to pick one, it is the importance of education and utilizing the tools available to us from the OEMs to ensure safe and proper repairs. Mike has made it his life’s work to improve our industry and provide the most cuttingedge information to ensure safe and proper repairs and putting our customer first, always.”

“Humble, dedicated, passionate and brilliant!” she described Anderson. “He is incredibly caring and goes out of his way to help. He is gracious and hands down, the most genuine person in our industry.”

“Mike is one of the most passionate people you could ever hope to know and call a friend,” Aaron Schulenburg, executive director for the Society of Collision Repair Specialists (SCRS), stated. “He puts his everything into this industry. His genuine passion comes across in everything he does. His energy inspires people, which is why they gravitate toward him and love him.”

Schulenburg has known Anderson since the early 2000s when he began attending national level events – “Mike has been around for the vast majority of my career in this industry” – and though he has many fond memories from their decades-long friendship, his

favorite took place years ago when Schulenburg was still learning how to present in front of people during a multi-night campaign for the Database Enhancement Gateway (DEG).

“It was such a great learning experience at that stage in my role, learning how to get in front of these big groups and share information that was meaningful to them. Learning how to communicate on a personal level with the right amount of energy to connect with people…that was a pivotal point for me, and though I’ll never be as masterful at it as Mike is, I learned a lot about how to communicate in a way that connects with people and makes a difference from watching Mike. He brings the right energy that makes people want to listen to what he has to say, delivering information in a way that resonates with people, and that’s a big piece of what Mike has taught me.”

Thomas Greco, president of Thomas Greco Publishing, met Anderson in 2007 “when we started publishing Hammer & Dolly, but I really got to know him through all the years at AASP/NJ’s NORTHEAST. Mike is just about the only person I know, at least in our industry, who is universally loved. Mention his name to anyone, and you get an instant smile! Mike is so full of positivity that he lights up every room he enters with his mere presence, and I cannot express how much I respect and admire him.”

Anderson and Greco bonded over a shared love of music. “We are both avid music lovers, so my favorite times with Mike involve diving into our record collections to talk about everything from Elvis to KISS. Industry-wise, every time you see him is a favorite moment because he is an amazing human being who genuinely cares…about you, your family, your business, this industry. Mike is a remarkable man, and he’s also extremely loyal. Whether it is good news or bad news, Mike is going to be loyal to you as a friend and tell it to you straight. What greater lesson is there?”

“Kindness, empathy and the importance of keeping your word,” veteran collision industry journalist Joel Gausten listed the lessons he’s learned from Anderson. He recalled interviewing Anderson for the first time in 2007 when he returned to Thomas Greco Publishing as the editor for Hammer & Dolly.

“This was my first automotive-related interview in a long time – and my first as editor of Hammer & Dolly. I admit that the pressure was on – after all, I was following in the footsteps of the legendary Sheila Loftus – but Mike instantly made me feel at ease thanks to his incredibly friendly and supportive demeanor. His

infectious enthusiasm for the industry was second only to his kindness. He welcomed me to my new position with open arms. Right after I finished the interview, I looked at Tom and said, ‘This is going to be great!’ That first phone call with Mike was a big reason why I ended up serving as editor for the next 15 years – and I value every conversation I have with him to this day.

“My favorite memories of Mike –which are ongoing – are of all the times he selflessly moves Heaven and Earth to help me out when I’m on deadline!” Gausten added. “Mike’s sick? No worries. Mike’s sitting in a cab heading to an airport? Not a problem. He always gets on the phone to talk to me…even after I tell him I’d rather reschedule so he can get some rest. Even when he’s spinning 100 plates at a time, he never makes me feel rushed. He’s the best friend any writer/editor could ever have!”

Gausten dubbed Anderson “the collision industry’s humble hero. In all the years I’ve known him, he has never said no to me – and I doubt he has ever said no to anyone! He puts others ahead of himself and always delivers on the promises he keeps. Honestly, I don’t know how he keeps so many commitments – he is the absolute busiest person I’ve ever known – but he somehow never lets anyone down. Knowing him – and following his example the best I can – has made me a better human being.”

Collision leaders from all over the country have benefitted under Anderson’s tutelage and the example he sets every day.

“Mike is full of energy with a BIG

heart,” lauded Danny Gredinberg (DEG) who met Anderson in 2008 when he conducted in-house estimating training at the shop where Gredinberg worked at the time. “He brought the power that night! And he’s taught me to live life to the fullest by helping everyone around you. Don’t worry what anyone thinks; always be true to yourself.”

“I've worked with Mike for more than a decade, and would be hard pressed to name someone who works more tirelessly on behalf of the collision industry,” shared John Yoswick (CRASH Network). “As busy as he always is, I don't think he's ever ended one of our phone calls without asking, ‘What else can I do for you, sir?’ I really appreciate and admire that.”

Collisionista Petra Schroeder first met Anderson back in 1996 when his body shop, Wagonwork Collision Center, was a customer of the paint supplier for whom she worked at the time. “He was totally committed to doing the best possible in every interaction, and I fondly remember his dedication to quality repairs. Mike is amazing. He remembers so many business facts and presents without any papers. Everything he says is true, but it goes beyond the business because he remembers so many personal details about his contacts. He’s a businessman, but he’s also the type of man anyone can be proud to call ‘friend.’

“He pulls people in because he has a fascinating, unique way of presenting,” Schroeder continued, offering high praise: “He makes things very clear, he is very

direct, and he says it as it is. Mike is fascinating, loyal and committed to doing the right thing. He’s dedicated to the people and has taught me what matters most…First: You can be an expert in what you do, but if you do not care for the people, you miss the ball big time. Second: Integrity. I am so glad I got to know Mike.”

No one can accuse Anderson of not caring. In fact, his passion for the collision industry has often inspired others to find their own passion.

“I met Mike at a point in my career and life when I was working in a dead-end job. Things were not going particularly well, and my passion for the collision industry was fading,” recalled Dave Luehr (Elite Body Shop Solutions). “Mike was teaching a class on ‘lean processes;’ it was my first time seeing him teach, and I was blown away! I was inspired by his passion and his knowledge of the industry, but even more than that…He helped me realize I could do more to serve others than I had been. He helped me regain my own passion!”

After Luehr founded Elite Body Shop Solutions in 2014, he was accused of being a “Mike Anderson wannabe,” and although “at first it was hurtful, I realized that if I ‘wanna be’ like anyone, it was Mike Anderson, so I embraced the accusations with a smile and set out to do my own thing. Mike has been such an inspiration of my own career, and I look up to him greatly, so my most cherished memory was sitting on panels with him as his peer. It’s such a treat to share that experience with him at a conference. Mike is a shining example of how an entire industry can be positively shaped when a person passionately seeks to serve others above self.

“He is like a fireball of energy. Where does that energy come from? It’s the passion he carries for the industry,” Luehr added.

“You ask almost anybody about Mike, and that is the first thing they say. He’s energetic and passionate. Combine that with his knowledge. I don’t know how he does it all. He’s everywhere. Constantly learning and teaching in this non-stop cycle since I’ve known him. Mike is so magnetic because he, like Dolly Parton, attracts people with his generosity. I’ve found that the most magnetic people you want to be around

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draw you to them because they are so generous with themselves. That’s what I’ve learned from Mike above everything else.”

Of course, no one knows Anderson quite as well as the ladies who work with him day in and day out.

Tracy Dombrowski (Collision Advice) met Mike in 2001 during his early days of facilitating 20-groups. “Axalta brought Mike in as a subject matter expert to help build out a new estimating class. His training material was a two-inch binder filled with copies of trade articles and reference materials. When I first met him, he had shaved his head in support of a kid in his church group who had cancer. He called everyone ‘ma’am’ or ‘sir’ all the time, and he was so passionate (and loud!) during his seminars, the hotel staff often had to ask him to be a bit quieter.

“But that’s because he is extremely passionate about the collision repair industry. The most important thing I’ve learned from Mike comes from Proverbs: ‘As iron sharpens iron, so one person sharpens another.’ Mike is constantly pushing to improve –improve the industry, improve our training, improve ourselves. He has built a business and a reputation for excellence, and you can truly see that in everything he does. He genuinely wants to help the shops he works with improve and grow. In that pursuit, anything he can do to help improve the industry he’ll do. For most people, their legacy is their children. For Mike, it is this industry!”

Although Anderson is dedicated to the industry, he never loses sight of the fact that the industry is made up of actual people, and he’s just as passionate about those individuals as well.

“Like a step-dad, Mike always makes sure I’m happy and that

I don’t need anything. He really likes making my kids happy too! Mike always wants the best for those he loves and will do whatever it takes to make sure it happens,” shared Tiffany Driggers (Collision Advice) whose parents were close friends with Anderson. “I met Mike in 2002, while I was in my senior year of high school, and he begged me to come and work for him because he was impressed with the way I cleaned house.”

Driggers has learned many important lessons under Anderson, but one stands out above all others: “Don’t give up! Mike has been through a lot and has never once been ready to just give up. Things might have changed courses over the 20 years we have been working together, but he has always stuck up for his company when he needed to, and he never gave up!”

Persistent. Loyal. Energetic. Selfless. Positive. Dedicated. Passionate. Humble. Caring. Inspiring. Few people earn even a few of these affirmations, yet Anderson deserves these descriptors and more.

“Mike has touched so many things; he is special within this industry,” Schulenburg summed it up nicely. “We wouldn’t be who we are as an industry without a lot of the things that he has done to influence it. Mike is absolutely a doer. He wants to be a part of this industry; he wants to support it. He finds ways to support shops, bring them information and liven them up. It’s awesome that he’s being recognized and honored in this way because the collision repair industry wouldn’t be what it is without Mike Anderson.”

Can we get an Amen?!

You Can Charge Whatever You Want

If you own a collision repair shop, then you can charge whatever you want for your services. Insurers don’t set your labor rate, don’t set your storage policy and don’t determine how you should make repairs. You do. Yes, I know that insurers pay for the bulk of collision repair work, but that doesn’t mean they can dictate what you charge for your work or how to run your business.

You may think that I am naïve to say these things, and that my statements are overly simplistic and do not reflect the reality of your business. But my statements are true: You, and only you, can determine what you want to charge for your work. If you agree to accept whatever an insurer says they are willing to pay for a repair, then YOU have made the decision that this is what you are going to charge, not the insurer. But if you do it correctly, then you can charge more – or less, if you so choose – than an insurer tells you that they are willing to pay.

The Legal Basis for Setting Your Charges

You have the right to contract directly with your customer for whatever you want to charge, for whatever repairs you are going to make and in whatever manner you are going to make them; however, the key is that you need to establish a mutual and legally enforceable contract with your customer.

You cannot just take a car in, start repairs and then hand your customer a bill when repairs are completed. Your customer must be informed in advance of what you are going to charge, and they must knowingly agree to it. That is the nature of a contract, i.e. that both parties involved must have agreed with the other as to its terms. If someone shows up at your house and paints it without you requesting the service and agreeing to their charges, then they cannot force you to pay them. By the same token, unless your customer agrees to have you repair their car and has approved the cost of the repair, then you cannot force them to pay you.

As has been explained in depth in this column before, the Massachusetts Attorney General has issued regulations that govern auto repairs, and those regulations tell you what you must do to have a binding repair contract with your customer. If you do not follow the rules set out in those regulations, then it is a per se unfair and deceptive business practice for you to charge your customer for the repairs. Essentially, except for certain emergency repairs, you must do one of the following:

(1) Obtain written authorization signed by your customer listing the specific repairs to be performed and the total price to be paid for those repairs, including parts and labor. Or:

(2) Obtain written authorization signed by your customer listing the specific repairs to be performed, while having your charges for the repairs, including parts and labor, displayed in a clear and conspicuous manner on your premises. (This option usually does not apply to collision repairs and is more relevant to services with standard prices, such as an oil change.) Or:

(3) If you are unable to obtain written prior specific authorization from your customer (as when you have not yet had a chance to fully determine the cost of repairs to be performed at the time the vehicle is delivered to you), then you subsequently can notify your customer, but still prior to starting repairs, of the specific repairs to be performed on the vehicle and the total price to be charged for the repairs,

including parts and labor, and obtain your customer's written or oral authorization at that time to perform the repairs. If you get oral authorization, then you must record the date and time of when that occurred, who you spoke to and exactly what was authorized. Or:

(4) Get your customer to knowingly, voluntarily and intelligently sign a waiver form containing language set out in the regulation, agreeing to pay for repairs so long as they do not exceed a specific dollar amount. It is key that your customer fully understands what they are doing when they sign the waiver form.

In addition to this, you can charge any amount that you want and for any period of time, for storage of your customer’s vehicle. But you must disclose IN ADVANCE both the conditions under which you will charge for storage and the daily (or hourly) rate for storage. You can disclose this information either in your original customer signed repair order or by clearly and conspicuously posting the information in your shop.

The point is that, if you follow these rules, you will have a binding and enforceable contract with your customer for your repair and storage charges – no matter what your charges may be, and no matter what your customer’s insurer wants to pay. You can set your own hourly labor rate, you can charge a mark-up on parts, you can charge for ALL of the procedures needed to repair your customer’s car to preaccident condition, and you can charge your stated daily storage rate for whatever periods of time you have disclosed in advance that you are going to charge for. If you follow the rules, then your customer will be obligated to pay you those charges, and you will have an enforceable garage keeper’s lien against their vehicle for your charges.

So, Why Doesn’t It Seem to Work This Way?

It does work this way for some repair shops. If you do specialty repairs and do not rely on insurance reimbursement, or if you do restoration work, or even if you are a MAACO shop selling a basic paint job for an old jalopy without collision coverage, then you actually are (or should be) doing it this way. Further, any other repair shop that contracts with their customer for their repair charges, and that doesn’t accept whatever lesser amount their customer’s insurer is going to pay, is also doing it this way.

The problem is that most collision repairs are paid for by insurers and that most repair shops think that they need to accept what their customer’s insurer is going to pay in order to stay in business. And just because your customer has contracted for repair of their vehicle and has obligated themselves to pay your charges does not mean that their insurer is going to pay that amount.

Additionally, a large number of repair shops participate in insurer referral programs, where they contractually agree to accept whatever their referring insurer dictates for repair costs, so that these shops cannot charge their customers anything more than that. (By the way, being a referral shop does not relieve you of your legal obligation to obtain your customer’s advance authorization for repairs to their vehicle. If you are a referral shop and do not follow the Attorney General’s regulatory rules, then your customer legally can direct their insurer to pay them directly and never pay you for your work.)

Castleman,

continued from pg. 36

As long as you agree to be controlled by insurers – and that is really what is happening – you are never going to be able to charge your customer more than their insurer is offering to pay. In order for things to change, you are going to need to view your customer as they truly are, i.e. your customer. Get it through your head: Your obligation is to your customer, not to their insurer. And the party obligated to pay you for your charges is your customer, not their insurer.

It is my belief that the only time insurers agree to pay a higher labor rate, or agree to pay for a procedure that they have not previously paid for or agree to pay for anything else new, is when some number of repair shops insist that they get paid these amounts and start charging their customers for these items. There is no other reason that an insurer would voluntarily pay these charges. Why should they, if almost all repair shops will accept what they are offering? Out of the goodness of their heart? I don’t think so.

Maybe, it is a specialty repair that only a few repair shops currently have the expertise and equipment to accomplish. Perhaps, it is a new procedure that OEMs say is necessary to properly repair a vehicle. Or in rare circumstances, it could be a repair shop that is in an isolated area that can set a higher labor rate, knowing that there are no other local shops able to make proper repairs. Whatever it is, when these shops start insisting on what they need to get paid, and start looking to their customers to get paid the extra amounts and start educating their customers as to why these additional charges are necessary, then things start to change for all repair shops.

By the same token, if a significant number of insurer referral shops were to independently decide to remove themselves from insurer referral lists unless they start getting paid a certain labor rate or for certain procedures, etc., then the referring insurers would need to change what they pay in order to have enough referral shops available to repair their insureds’ cars. Is it realistic to think that this is going to happen? Maybe not.

And if not – and if you ever want to collect more than your customers’ insurers are willing to pay – then you better be prepared to hold yourself out as an independent shop that educates its customers and looks to their customers to get paid. Otherwise, things are not going to change, and at best, you will forever be trying to hone your appraising and negotiating skills, while trying to retain good help for salaries that are lower than those in other industries, in the hope that you somehow are going to make enough money to be able to support your family and to make it worthwhile for you to stay in business.

Conclusion

Please understand: No matter what insurers try to tell you, you can charge whatever you want for the repairs that you perform. Just be aware of what you need to do in order to legally collect those charges. And always be aware of who your true customer is – the vehicle owner, not their insurer.

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

EXECUTIVE DIRECTOR’S MESSAGE

continued from pg. 8

posted rate and what you are willing to pay.” Yes, “co-pay” is here to stay. Insurers are realizing that this is no longer an idle threat. Every day, shops across the state are successfully collecting their fair, reasonable rates and, if need be, are charging the vehicle owner and assisting them in getting reimbursed by the insurer.

WHY? It is because the fear and anxiety factor has been greatly diminished. Shop owners know that the pool of technicians is shrinking, and only those shops that can afford to pay their technicians a fair and well-deserved wage will thrive going forward. This newfound confidence, success and the breaking of the fear and anxiety chains has led to more shops removing themselves from contractual arrangements. The efforts of the “ALLIANCE” have played a major part in this change. Our combined lobbying efforts, the increase in membership and consumer education, through avenues such as our TV show, Auto Sense and our website, have all contributed to the pressure on insurers to be open to willingly negotiate. All parties are thinking more clearly and are not being controlled by fear and anxiety. Anxiety, the unpleasant emotion caused by the belief that someone or something is a dangerous threat, is becoming an emotion of the past.

FEAR WILL NOT KILL THE COLLISION REPAIR INDUSTRY! “What does not kill you only serves to make you stronger.”

AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org.