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COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155 Phone Number: 781-395-3025 FAX Number: 781-475-5063
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COLONIAL CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA. 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213
COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464
COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801
COLONIAL CADILLAC 201 Cambridge Road Woburn, MA. 01801 Phone Number: 781-935-7009 FAX Number: 781-933-7728
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COLONIAL VOLKSWAGEN COLONIAL SOUTH CHEVROLET 89 Turnpike Road (Rte. 9) 361 State Road (Rte. 6) Westborough, MA. 01581 Dartmouth, MA. 02747 Phone Number: 508-996-6266 Phone Number: 888-322-6570 FAX Number: 508-979-1219 FAX Number: 508-616-0445 COLONIAL VOLKSWAGEN OF MEDFORD 162 Mystic Avenue Medford, MA. 02155 Phone Number: 781-475-5200 FAX Number: 781-391-3506 WELLESLEY VOLKSWAGEN 231 Linden Street Wellesley, MA. 02482 Phone Number: 800-228-8344 FAX Number: 781-237-6024 Contact: Dan Bettencourt / Wholesale Parts Manager
COLONIAL CHEVROLET 171 Great Road Acton, MA. 01720 Phone Number: 800-787-2787 FAX Number: 978-263-8587 COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420 Phone Number: 978-345-5532 FAX Number: 978-345-1152
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You’ve got the right tools, staff, technology and procedures to give your customers the best repair possible. The missing piece of the puzzle? Genuine Volkswagen Collision Parts. Contact an authorized dealer today and find your perfect fit. Mattie Volkswagen 80 William S. Canning Blvd. Fall River, MA 02771 800-678-0914 fax: 508-730-1283
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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
Volkswagen of Hartford 133 Leibert Road Hartford, CT 06120 Direct Parts: 860-543-6012 fax: 860-728-4408 email: ebautista@vwofhartford.com
Mastria Volkwagen 1619 New State Highway Raynham, MA 02767 Toll Free: 888-581-1146 Direct Parts: 508-802-9955 fax: 508-802-9966 email: vwparts@mastria.com www.mastriavw.com
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New England Automotive Report
Wholesale Parts
December 2023 3
THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW. For Original BMW Parts, contact one of these authorized BMW centers: BMW of West Springfield 1712 Riverdale St. West Springfield, MA 01089 PH: 413-746-1722 FAX: 413-304-9009 bmwwestspringfield.com
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BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com
©️2023 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.
4 December 2023
New England Automotive Report
December 2023 • Volume 21, No. 12
DEPARTMENTS
CONTENTS NATIONAL FEATURE
PRESIDENT'S MESSAGE 6 | We Want You to Take Advantage of Us by Kevin Gallerani EXECUTIVE DIRECTOR’S MESSAGE 8 | Are You Wasting Your Time? by Evangelos “Lucky” Papageorg GUEST EDITORIAL 10 | Walter Thomas: An Example of How to Act by Joel Gausten LOCAL NEWS 10 | New ADALB Members, Same Old B.S. 12 | State “Make Ready” Program Can Assist with EV Preparedness 12 | Speak Up for Your Shop: Take the 2023 New England Automotive Report Industry Survey! LOCAL FEATURE 16 | AASP/MA Paves the Way Toward “Getting More in ‘24” by Alana Quartuccio
28 | AASP Leaders Take Part in National and Local Level Talks by Alana Quartuccio
COVER STORY
VENDOR AFFINITY PROGRAM SPOTLIGHT 18 | Shelterpoint Life Insurance Company by Alana Quartuccio NATIONAL FEATURE 24 | CIC Highlights: Candid Conversations on Crucial Collision Repair Issues by Alana Quartuccio LEGAL PERSPECTIVE 34 | Looking at Your Shop’s Forms: What to Know and Where to Go by Sean Preston,Coverall Law
32 | Did You Break Free in '23? Get More In '24! by Chasidy Rae Sisk
ALSO THIS ISSUE 7 | AASP/MA MEMBER APPLICATION 19 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS New England Automotive Report
December 2023 5
PRESIDENT’S MESSAGE
KEVIN GALLERANI
We Want You to Take Advantage of Us
As 2023 draws to a close and 2024 lurks around the corner, I’ve got a message for AASP/MA members and nonmembers: we want you to take advantage of us! It’s that time for every business owner to be examining every expense and considering future investments. Hopefully, this has been a good year for each of you, but who doesn’t want to improve upon even the best year? So, what are you going to do differently to improve your business after you put that new calendar up on your wall? Will you send your employees to training, install new equipment or hire a new technician? Perhaps, you’ll consider removing your shop for all insurer referral programs…or maybe you’re planning to keep doing the same things because you feel like you’re doing just fine – or simply because you feel like it’s too much work to try to price out different options for insurance, merchant services or contracts. I fully understand how overwhelming it can be to look for new providers, but AASP/MA has your back! As an association member, you’ve got access to a ton of great benefits and discounts through our Vendor Affinity Program (VAP) participants, companies that support the Alliance and everything it’s doing to better the collision repair industry in
STAFF
AASP/MA EXECUTIVE COMMITTEE
PUBLISHER
President Kevin Gallerani
Thomas Greco | thomas@grecopublishing.com
AASP/MA STATEWIDE DIRECTORS
EDITORIAL/CREATIVE COORDINATOR
Legislative Director At-Large Ray Belsito
Alana Quartuccio | alana@grecopublishing.com
OFFICE MANAGER
Donna Greco | donna@grecopublishing.com
PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com
MANAGING EDITOR
Chasidy Rae Sisk | chasidy@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 @grecopublishing
AASP/MA DIRECTORS ZONE 1 Mike Penacho John Studer Dan Wenzel
continued on pg. 40
Vice President Matthew Ciaschini
VICE PRESIDENT/SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com
the Commonwealth. AASP/MA members can safeguard their employees’ health by offering health insurance through the Amato Insurance Agency (a division of World Insurance). Altus dental coverage is available through The Magellan Insurance Agency, and we recently added an opportunity to get a discount on Paid Family and Medical Leave (PFML) through Shelter Point (get all the details by flipping to page 18). We’ve partnered with Aurora’s Chosen Payments to provide shops with access to discounts on credit card processing fees (and if they can’t beat your current processing rates, they’ll pay you $500 just for doing the rate comparison). And you can also tap into grant money for training through our partnership with Human Power Solutions. If you’re planning to enhance your marketing outreach in 2024, be sure to check out Moonraker SEO and cPrax Internet Marketing. Ready to move forward with ADAS? Designer Office Systems and Crown Collision Solutions can help you out! And we’ve also got access to some really intelligent people like Rachel James (Torque Financial Group), who can help shops
Treasurer Dana Snowdale
Secretary Don Dowling
Collision Director At-Large Dan Wenzel ZONE 2 Ray Belsito Brenda Lacaire
Affiliate Director Al Correia Brent Dabrosca C.J. Ellis Jimmy Kelsey Russ Oagles Doug Begin
ZONE 3 Gary Cloutier Andrew Potter Brian Stone
ZONE 4 Kevin Kyes Dean Luther Jeff White
Affiliate Directors Mike Nawrocki McColl Rhodes
Affiliate Directors J.R. Force Simon Frietas Jayce Mitchell Gregg Tanguay Scott Varney
AASP/MA ADMINISTRATIVE OFFICE 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 © 2023 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
6 December 2023
AASP/MA Executive Director Evangelos “Lucky” Papageorg
New England Automotive Report
AASP/MA Administrative Assistant Alana Quartuccio
WWW.AASPMA.ORG
P. O. Box 850210 Braintree, MA 02185 617-574-0741
Membership Application 2023-2024
AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741 Fax: 973-235-1963 Email: admin@aaspma.org
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You! BUSINESS INFORMATION Massachusetts Shop Registration # __________________
Total number of Staff (Techs, office, Mgrs)________
Company’s Official Name: ________________________________________________________________________________________________ Business Physical Address: _______________________________________________________________________________________________ Business Mailing Address (If Different): ________________________________________________________________________________ Telephone Number: (______)-________-___________ Fax: (______)-________-___________ DUES STRUCTURE. Collision Shop Annual Dues: $650 / 12 Months* PRIMARY BUSINESS CONTACT Name: _______________________________________________________________________________________________________________ Email: _______________________________________________________________________________________________________________ As a member in good standing, your shop WILL BE listed on our website. Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.
Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Dental plan � Healthcare plan � Credit card processing � Grant writing/training � Google presence optimization � All five PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) CC #: ______________________________________________________________________
OR
EXP: ________/___________ CID: _________________
Billing Address: ______________________________________________________________________________________________________________ Name On Card: _____________________________________________ Signature: ____________________________________________________ Check here � to opt out of auto renewal using this credit card information for future renewal Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction
I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/MA) for membership dues 2023-2024 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
REV REV 06/23 12/22
RECOMMENDED BY:__________________ FROM BUSINESS NAME: ___________________ New England Automotive Report
December 2023 7
EXECUTIVE DIRECTOR’S MESSAGE
EVANGELOS “LUCKY” PAPAGEORG
Are You Wasting Your Time?
At one time or another, this is a question that crosses the mind of everyone who has chosen collision repair as their profession. It is a question that is asked by those in wash bays and areas all throughout the shop, and it is asked especially by the shop owner. It is indeed a challenging and daunting task to buck the system and stay the course to do what is right for you and your customers. All too often, it is this challenge which brings us to question ourselves. Some buckle under the pressure and seek an “easy” remedy. As you know, there are those who have never gone the easy route of “going along to get along.” Thankfully, they have seen that being truly independent will be the only way to be successful in the future and not be subjected to the indentureship and controls of referral and program contracts. More shops are coming to this realization on a regular basis and have "broken free in ‘23.” Those who are truly wasting their time are the chest pounders and saber rattlers who are quick to point out what is wrong with the industry but who do not look in the mirror and realize that the person looking back at them is the true problem. They are the same people who when asked to join associations like AASP/MA say, “Why should I?” or “What have you done about the labor rate?” These are the very same individuals who want everything handed to them, or they are the people who think they know a better way to handle the insurance industry. Worse still are those individuals who are lying and cheating their customers by not repairing vehicles correctly and not charging accordingly and then justifying their actions by blaming it on the insurance industry’s practices of underpaying and suppressing collision repairers. There is no justification for not doing the right thing and thereby putting vehicle owners and their fellow motorists at risk. Having just returned from SEMA and having seen the thousands of attendees from all over the world and the US collectively looking at all the shiny new tools and management ideas, it is sad to think that the majority of business owners are now back at their shops basically doing the same old thing they have been doing for far too many years. It is certain they took the brochures, listened to the sales pitches and may have even made a purchase or two for the shop, but did they also attend the multitude of courses that would ultimately lead them to be better professionals in an industry that is changing nearly daily? Did they pay attention to the fact that the industry is on the brink of breaking free from the methods of the past and is ready to shake loose the dead weight that has been holding everyone back? If anyone could be justified in asking the question “Am I wasting my time?” it is me. Don’t get me wrong, I do not for a moment think that I am wasting my time. If I did, I would have
8 December 2023
New England Automotive Report
moved on long ago to a different profession. Like many of you out there, I see a future where collision repairers will be greatly respected for the services they provide and be paid properly for the liability they take on in the repair process. The proof is in the fact that many outside of the collision industry are investing in the industry through financing consolidation efforts. If there were not money to be made, this would not be the case. There was a great segment during the Collision Industry Conference (CIC) that spoke to this fact. On the bright side, the panel discussion highlighted the fact that it is not all doom and gloom for the owners who want to stay independent and maintain the personal touch for their customers. There is a wonderful and exciting future for those who choose to work for it. That is why I do not feel like I am wasting my time, and neither should you. What was very evident during the panel discussion on consolidation and the future, if you are going to be successful, whether you look to stay independent while growing your business or look to be targeted by a consolidator, you have a lot to do. Your business needs to have curb appeal to potential customers as well as prospective buyers/consolidators. You cannot just try to eke out a living by hoping that things will fall into place and your current business model will provide you with a “golden parachute.” If that is your plan, you are truly wasting your time and holding back the needed progress in your business and our industry. If you are not taking advantage of the current situation brought on by ADAS technology to demand that you be properly compensated for the repair procedures required to restore vehicles to pre-loss functionality with the confidence to put your own family in the repaired vehicle, then you are wasting your time. If you are not striving to do the right thing, regardless of what an insurer says they are willing to pay for, then you are wasting your time, along with taking the risk of losing everything you have worked hard to build. Now is the time to be positive in your approach to your business. Invest in your future and the future of your technicians. Yes, buy the equipment and invest in the training that was fully on display at SEMA, but not before you decide that to make it all work, you must be willing to charge accordingly. If the insurer is not going to pay, then the vehicle owner must. The vehicle owner must pay, just as they do for other vehicle expenses like mechanical repair and maintenance and their auto insurance. They must pay you for your expertise and the liability you take on, the same way they pay their doctor to maintain their health or nurse them back to their pre-illness condition when they are not well. If you do not see this as an inevitable outcome because insurers are not covering the continued on pg. 40
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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
Balise Subaru 561 Quaker Ln. Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
Patrick Subaru 247 Boston Turnpike Shrewsbury, MA 01545 508-756-8364 Fax: 508-752-3691 www.patricksubaru.com jlavalley@patrickmotors.com
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New England Automotive Report
December 2023 9
[LOCAL] NEWS
New ADALB Members, Same Old B.S. When the Auto Damage Appraiser Licensing Board (ADALB) convened on October 23, something was amiss: two new faces occupied the space where former Board members Rick Starbard (Rick’s Auto Collision; Revere) and Samantha Tracy (Arbella Insurance) normally sat. Yet, Chairman Michael Donovan did not acknowledge the fact that half the Board had been replaced as he called the meeting to order and asked for approval of the previous meeting minutes. And with the exception of Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown), no one took notice of the changing of the guard as the ADALB proceeded through its meeting agenda. An update on the Part II exam for motor vehicle damage appraisers was followed by a hearing on the potential revocation of the motor vehicle damage appraiser license of Justin Forkuo, formerly of 290 Auto Body (Worcester), based on the final findings of Massachusetts Associate Superior Court Justice A. Gavin Reardon Jr. in Preferred Mutual Insurance Company v. 290 Auto Body Inc. In his final judgment, Reardon found that Forkuo had “created a fraudulent auto damage invoice and engaged in fraud and deceit in the appraisal of damage of a motor vehicle,” according to the meeting agenda…an inaccurate statement as it turns out, since an appraisal was never written on the vehicle in question! After more than an hour of circling the same arguments, a motion to revoke Forkuo’s license demonstrated that, while there may be two new Board members, nothing has changed at the ADALB: the two insurance representatives voted for the revocation, the two auto body representatives voted against it, and Chairman Michael Donovan broke the tie by voting in line with the insurers. The final order of business entailed the review of Complaint [GUEST] EDITORIAL
2023-1, and although the appraiser’s name was excluded from the discussion, Johnson pointed out that the insurer mentioned in the complaint caused a conflict that required Smith to recuse himself. Likewise, new Board member Vicky Wei Ye (Bos Insurance Agency) had to recuse herself since her company writes policies for MAPFRE. After a preliminary discussion about the complaint, Johnson and new Board member Carl Garcia (Carl’s Collision Center; Fall River) agreed to request a written response from the appraiser in an effort to acquire more facts about the situation before moving forward. When the meeting opened for questions from the public, AASP/MA Executive Director Lucky Papageorg asked for the new Board members to be introduced as a courtesy – at which point, new names were finally assigned to the new faces at the table. Referencing testimony given at the recent Financial Services Committee hearing, Papageorg also questioned a comment made about the nature of the complaints being made to the ADALB based on “frivolous” dollar amounts, asking if there’s a specific figure that makes a complaint valid. Donovan indicated that the determination would be made on a case by case basis. The ADALB is scheduled to reconvene on December 5 when the Board will resume review of the complaints sitting in the queue. Don’t miss detailed coverage of the 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 October 23 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/ADALB1023. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
by Joel Gausten
Walter Thomas: An Example of How to ACT Thank you for your piece on the late Walter Thomas in your October 2023 issue. It was a fitting tribute, and it inspired me to add a few words of my own. My introduction to Walter was via videotape way back in the early 2000s, as those were the days when Lucky Papageorg (now executive director of AASP/MA) would record the Auto Damage Appraiser Licensing Board (ADALB) meetings and mail the tapes down to the TGP office in New Jersey. Those were heated times for the ADALB, and those meetings often felt more like episodes of a soap opera than gatherings of a state regulatory board. But amidst the drama and shouting sat Walter, who NEVER raised his voice. When things got heavy, he would chime in with his trademark soft-spoken demeanor – deflating the tension in the air while often offering a much-needed voice of reason. He always brought a sense of calmness to the proceedings – and he set an example of how to act when things got turbulent.
Although Walter had been on the other end of my phone many times during my early years with the magazine, I only chatted with him in person once. It was at an AASP/MA Casino Night well over a decade ago. Walter had recently retired, but he was there to be honored by the association for his years of work on behalf of the industry. Shortly before the ceremony, he walked over to me and said, “I always talked to you because I knew you’d get the story right.” Moments later, he reached out his hand to mine for my help walking him to the stage. It was an honor. We all let our emotions get the best of us from time to time – and that’s very easy to do if you work in the collision repair industry. But as Walter taught us, it’s always better to stop, think, speak softly and conduct yourself with civility. May we all strive to be ladies and gentlemen whenever the room we’re in fills with chaos. In my mind, there’s no better way for us to honor the man. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
10 December 2023
New England Automotive Report
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[LOCAL] NEWS
State “Make Ready” Program Can Assist with EV Preparedness AASP/MA recently learned about the “Make Ready” program, which the state of Massachusetts launched with Eversource and National Grid, that can help shops get a jump start on EV preparedness. This $450M initiative seeks to place high-speed Level 3 chargers throughout the Commonwealth. As EV's production expands, the EV used car market will increase. Getting ahead of the lack of chargers throughout the state is the main focus of this program. This is a great way to draw attention to your business and potentially create an additional revenue stream at the same time. Key Points: • Up to $400,000 per location for Level 3 DC Fast EV Charger Units. • Infrastructure costs covered by utility (transformer, poles, trenching, cable, etc). • First come, first served and incentives will be reduced as funding
benchmarks are hit. • Eversource/National Grid in MA only, not offered in municipal electric utility towns. • EV units must be publicly accessible for 12 hours a day, visible from a street and operable for five years. • Level 3 DC 120 kwv chargers can charge a car in +/-45 min. • Clients own the units outright and retain profits from charging. They can set rates and give discounts. This is an excellent opportunity to add EV charging with the state paying for almost everything. Eventually, the funds will be exhausted, and the cost will fall onto business owners To learn more about the program, contact John Corcoran of Rinn Advisors at (617) 480-6693 or visit rinnadvisors.com. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
[LOCAL] NEWS
Speak Up for Your Shop: Take the 2023 New England Automotive Report Industry Survey! Running a collision repair shop in the Commonwealth is filled with constant changes, challenges and conquests, but after years of hearing “you’re the only one,” it’s easy to fall into the trap of believing that’s actually true. And to some extent, it IS true…no two shops are exactly the same, but have you ever wondered just how different – and similar – your facility is in comparison to other shops around Massachusetts? Now’s the time to find out! The New England Automotive Report 2023 Industry Survey provides an easy way for shops to get a glimpse into the inner workings of other local collision businesses. How many referrals and programs do other shops participate in? How are they educating their customers about the complexity of modern vehicles? Is anybody actually ready to repair electric vehicles?! When the survey debuted in 2021, 52 percent of shops responded that they did not participate in any referrals or programs, and given the pressures that insurers place in these situations, it’s no wonder that this number decreased by 12 percent in 2022. What about now? Are shops participating in more or fewer referrals and programs this year? Interested in how other shops promote their business or educate customers? Maybe, you’re wondering if you’re the only 12 December 2023
New England Automotive Report
shop balance-billing vehicle owners. Wonder no more! This annual survey provides an ideal opportunity for shops to share their own thoughts…and also learn what problems other local shop owners are facing when we publish the results in an upcoming edition of New England Automotive Report. You may even find a quote that sounds suspiciously like your experience (but rest assured, your responses are safely anonymous; the names of respondents will NOT be printed). Just go to bit.ly/NEAR2023industrysurvey by December 31, 2023 to help the industry better understand where we’ve been, where we’re at and where we’re going. Your opinion matters…Now, make it count by taking 15 minutes to complete the 2023 Industry Survey. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
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New England Automotive Report
December 2023 13
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For more information, call Ernie Nickole 781-233-0920
14 December 2023
New England Automotive Report
New England Automotive Report
December 2023 15
[LOCAL] FEATURE
AASP/MA Paves the Way Toward “Getting More in ‘24” For the past 12 months, AASP/MA has made “Breaking Free in ‘23” its mantra. Every step that the Alliance has taken has been geared toward its battle cry, helping body shops declare their independence from the confinements of insurer control. As a result, collision repairers across the Commonwealth have been successfully taking the reins of their businesses back with the goal of being able to make more and do more as 2024 draws near. On October 21, AASP/MA held its final installment in a series of meetings designed to set up members of the collision repair industry with the tools and resources needed to retake control and ultimately work toward getting fairly compensated for doing proper repairs. “We need to understand no one can do it alone,” AASP/MA Executive Director Lucky Papageorg reminded the audience who filled the Assabet Valley Regional Technical School for “Breaking Free in ‘23 - Part Three.” “None of us can be Superman, but through education and understanding, we can move in the right direction.” This third “Breaking Free in ‘23” installment had something for everyone in the shop - from shop owners to technicians and front office staff. The agenda was geared toward painting a healthy financial picture, exploring ADAS technology and discussing the legal forms and contracts shops need to implement in order to protect their business and their customers’ best interests when properly repairing vehicles. Rachel James (Torque Financial Group) used her background as a former technician and former major paint manufacturer employee, along with her expertise as a financial advisor, to paint an eye-opening picture about what finances should look like from the perspective of a shop owner as well as an individual employee. James illustrated what planning should involve from managing profits and losses, to preparing for the future and being ready for emergencies. Managing finances takes discipline. So much has changed over the past few decades which influences the way the average person spends money. From smartphone apps driven by marketing that is specifically designed to show us items we want which leads to impulse buys to the average household growing from one vehicle to three or more, things have changed dramatically, and therefore, the way money is managed must change as well. More vehicles in driveways may be “good for our industry as it means there’s Rachel James, more for us to repair, Torque Financial Group 16 December 2023
New England Automotive Report
but on the personal side, it means we are committing ourselves to more debt.” The introduction of more consumables has cut the average savings rate in half. “It’s easy to lose sight of the things we are spending our money on,” she pointed out. “The real trick to financial planning is having different buckets. Being prepared for the things you hope will work out, may not work out. Do you have different things in place to help you manage the unexpected?” James queried. “COVID was really a great lesson about being prepared for the unexpected.” Having conversations about money is considered a touchy subject, but according to James, discussing money is necessary. “You can’t blame employees for needing to go somewhere for $2 more,” she expressed. “Start talking to your people about finances. The more comfortable people are about it, the less stressful it will be.” When it comes to setting financial goals, business owners need to think through their business and their personal finances because “if one suffers, the other will too.” She also suggested they set up times to look at their finances to catch things that could be easily missed, like a forgotten payment or overspending. Cash flow is important, and if one can catch errors right away, it will eliminate the need for chasing missed payments later on. Ed and Scott Rachwal (Designer Office Systems) and Mike Johnson (Crown Collision Solutions) teamed up to exhibit what ADAS means for the future of the industry, including how to effectively make these repairs part of one’s business. Together, they worked to drive the point home that there is only one mindset to have regarding these repairs, and that is to make sure they are done right in order to keep vehicle occupants safe. “A lot of people I’ve spoken to question why they need to worry about ADAS as they are getting close to retirement or they don’t have the space,” shared Ed Rachwal. “Don’t think of it as something you have to do but rather as something that compliments your business.” Whether one decides to invest in the equipment to bring ADAS calibration in house or they choose to outsource the work, the liability for that repair falls on the body shop that took the vehicle in for repair. Johnson stressed there is no other way to do these calibrations other than correctly and by manufacturer procedures. “If you don’t do what the manufacturer says to do, and you skip a step, it will cause failure, and you’ll ask yourself why it is happening. When I first bought ADAS equipment, I spent seven hours on a windshield. I thought I had bought a dud of a machine, but it turns out it wasn’t the machine. It was because the windshield was aftermarket. Once I replaced the windshield, it worked.” Another important factor about procedures is making sure to document it all. “You have to pull that documentation every time and store it, so if something happens, you are covered,” suggested Scott Rachwal. Documentation and proper paperwork are crucial in not
by Alana Quartuccio
only protecting one’s business and the best interests of their customers, but it also aids a shop in obtaining proper payment. Attorney Sean Preston of Coverall Law set out to not only share solutions but to also collect feedback from the audience as he sought to obtain intel needed to create Sean Preston, Coverall Law a “corporate legal strategy,” something the collision repair industry does not have as opposed to the insurance industry. Strength in numbers is key, and “the more members who give us a call and let us know what is going on, the stronger we get, because somebody is actually paying attention to what is going on in this state.” The lengthy session touched on everything from litigation to replevin to the appraisal clause as Preston suggested to the audience that they “show what has worked and what hasn’t worked; it’s only going to benefit one another.” Upon addressing ownership, Preston explained, “I’ve created a lot of companies for people over the years. If all one does is file with the state or via an online service, it’s like going down the freeway on a skateboard. It’s not a good idea. Every little piece you do right is like adding paneling, protecting you so that vehicle is secure. When you have that vehicle, that company, you put assets inside of it, and that company becomes the entity.” He also spoke of good business practices, which includes having the right documentation. For example, if one uses a company for ADAS, it should be outlined via forms. Preston also educated the
audience on situations where a shop owner could be held personally liable for the company’s debts. Preston emphasized the importance of reviewing customer forms regularly, on a quarterly basis and also updating them according to operation changes. Customer forms do a number of things including defining the relationships of the body shop, customer and the insurance company. “You don't have a relationship with the insurer; you have a relationship with your customer, and the customer has a relationship with their insurer. You align yourself better with your customer by saying ‘we're on the same team. You agree that I need to get paid for what I'm doing, ans I agree that your insurance policy ought to take care of this, so how can we work together to make sure that's the case?’ I like that idea a lot. Defining those parties and defining the rights of those parties is going to be crucial in your forms.” Another important consideration is making sure standard terms and conditions are included in forms. “‘Terms and conditions’ is an opportunity to talk about some of your licensing agreements,” Preston notified attendees. “There's a separability clause you could put in there to say that if any sentence in the document is found to be unlawful or unenforceable, the rest of the contract holds to the greatest ability in the law, because you don't want the court to just throw out the baby with the bathwater, so it's the little standard terms and conditions that you ought to have. My recommendation is not for you guys to spend a ton of time learning about that stuff but to have your attorney go in and put in those terms and conditions.” Every shop represented at the event received a thumb drive with materials discussed to be used in their daily business operations. Shops interested in obtaining the materials from the event can contact Lucky Papageorg via lucky@aaspma.org. Stay tuned for more information on future related events by visiting aaspma.org. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
New England Automotive Report
December 2023 17
[VENDOR AFFINITY PROGAM] SPOTLIGHT
These days, businesses need all the help they can get when it comes to keeping costs down. Thankfully, there are companies that make it their mission to help others save, and Shelterpoint Life Insurance Company most definitely fits that description. Founded in 1972, Shelterpoint is a carrier for private plan disability insurance and has been saving companies in New York and New Jersey money for decades. More recently, the company entered the Massachusetts market, offering a cost-saving solution to the state-mandated requirement, which went into effect in 2021 and forces all employers to withhold family medical leave premiums from employee paychecks. Now, going into 2024, the state has increased the premiums being withheld by 39 percent, which will just cut into employers’ pockets even more. “We exist to save employers as much as we can off the newly increased rate and, at the same time, expertly administer the disability program,” explains Mark Falvey, director of sales for New England for Shelterpoint Life Insurance. “Just like everything else in the world that goes up – like mortgage rates, gasoline, groceries, etc. – here is another attack on the working American’s wallet. This isn’t something that one has a voice in or gets to vote on. The Department of Labor makes the analysis to determine the Paid Family and Medical Leave (PFML) is paying out more than it’s taking in, so the rate increases.” Shelterpoint’s mission to bring savings to small businesses is exactly why they are such a good fit for the collision repair industry in the Commonwealth. The company recently came on board as
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by Alana Quartuccio
a Bronze-level member of the Alliance’s Vendor Affinity Program. Falvey learned about AASP/MA from his associate, Steve Walsh of the Magellan Agency, another AASP/MA VAP supporter who also works with the association to offer dental insurance. Members who work with Shelterpoint can achieve savings on those state-mandated PFML costs. “Small employers need attention paid to them,” Falvey stresses. “Especially with the compliance heavy mandate like PFML.” Supporting AASP/MA by becoming a VAP member “is a wonderful opportunity to reach all of the small local shops who are members of your Alliance. “Instead of the money being sent to the state, it’s sent to an insurance carrier. The benefit we bring to AASP/MA members is they will get a much lower rate, and we handle claims much more efficiently than if they were on their own,” he adds. “Most businesses may not know that they can save money thanks to this program because no one is telling them. “If and when you find yourself in the position of needing to deal with PFML benefits, such as a woman going on maternity leave, and needing to access the money you’ve been forced to pay into, do you want to rely on the state to get your funds…or would you like to have a private company that specializes in this one thing to work with you to get your claim paid as quickly as possible? That convenience can be especially important for someone who is living paycheck to paycheck.” For groups in the association employing one to 24 people, Shelterpoint offers an automatic discount rate of .43 percent down from the state’s rate of .46, and for groups over 25, they will be targeting a 15 to 20 percent discount off of the state’s program, a significant savings for members. Shelterpoint works with companies of all sizes including shops with only a few employees. “We are built to serve the unserved,” he says. To learn more about the program, contact Steve Walsh at (781) 740-0064 or email swalsh@magellanagency.com.
GENESIS OF WEST WARWICK 405 Quaker Lane West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
18 December 2023
New England Automotive Report
"Your Massachusetts Auto Body Association" PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
VENDOR AFFINITY PROGRAM
SPONSORS
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BUY FROM YOUR AASP/MA SPONSORS For more information or to become a sponsor of AASP/MA please call (617) 574-0741 or email admin@aaspma.org. New England Automotive Report
December 2023 19
WHY GENUINE PARTS? It’s the Right Thing to Do
You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419 stirrell@iramotorgroup.com www.iramotorgroup.com
Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481
parts@wellesleytoyota.com www.wellesleytoyota.com
Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895
IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098
www.bernarditoyota.com
Balise Toyota 1399 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
One Call, One Truck for 14 Brands! Balise Toyota of Warwick 1400 Post Rd. Warwick, RI 02888 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com
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www.iramotorgroup.com
Grieco Toyota 415 Taunton Ave. East Providence, RI 02914 Direct: 401-438-2206 Fax: 401-431-0673 toyotaparts@griecocars.com www.griecotoyota.com
ToyotaPartsAndService.com 20 December 2023
New England Automotive Report
New England Automotive Report
December 2023 21
Co-celebrating decades of creating chemistry between two industry leaders
Here’s to 241 years of combined service excellence This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it. Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.
626 E. Elizabeth Ave., Linden, NJ 07036 Phone: (908) 925-6133 Fax: (908) 925-4344 414-416 Madison Ave., Paterson, NJ 07524 Phone: (973) 279-8300 Fax: (973) 279-9030 631 Clifton Ave., Toms River, NJ 08753 Phone: (732) 797-3942 Fax: (732) 797-0774 100 Melrich Road, Cranbury, NJ 08512 Phone: (609) 860-2800 Fax: (609) 860-2801 4 Emery Ave., Randolph, NJ 07869 Phone: (862) 244-4818 Fax: (862) 244-4822 22 October 2023 New England Automotive Report www.kemperle.com
New England Automotive Report
December 2023 23
[NATIONAL] FEATURE
by Alana Quartuccio
CIC Highlights: Candid Conversations on Crucial Collision Repair Issues They say what happens in Vegas stays in Vegas, but for those who attended the October 31 Collision Industry Conference (CIC) in conjunction with SEMA 2023, that statement could not be further from the truth! One of the most well attended CIC events in recent years, industry professionals walked away with newfound knowledge and the promise of a healthy future with amazing memories, thanks to the smash hit Jeopardy inspired game show, Repairidy, and a night to remember on the Red Carpet in celebration of CIC’s 40th anniversary. “We have to think of the consumer in everything that we do,” CIC Chair Frank Terlep (Opus IV) reminded the audience as the day got underway. “We have to focus on who is getting into that car after each repair, after it’s been calibrated, and ask ourselves if we’d put our child or grandparent in that vehicle.” Consolidation is the future, and during a special presentation, an all-star panel featuring Matt DiFrancesco (High Lift Financial), Laura Gay (Consolidation Coach), David Roberts (Focus Advisors), Cole Strandberg (Focus Investment Banking) and John Walcher (Veritas Advisors) agreed that it cannot be ignored. So where does that put the independent repairer? “The environment with consolidation is very bright. I think the independent shop really has a place in this environment,” DiFrancesco said during the panel’s candid conversation. “It may be a different place, but I think it’s a very important one.” Gay agreed, adding that independent shops shouldn’t feel pressure that they will have to sell in order to survive. “There's absolutely a place for the independent repair shop. One hundred percent.” There are many different deal structure platforms taking place, according to the panelists. There’s MSOs buying other MSOs, private equity deals and shop owners looking to grow their business by acquiring other shops, or those simply just entering into a
CIC Chairman Frank Terlep
succession plan. In analyzing the different platforms that exist, Strandberg noted, “Really the perfect storm for a platform level comes when you have an engaged owner who's in it for the long haul, wanting to roll significant equity. It shows they're around. They're a believer in the story, and they're going to drive the ship for you.” CIC attendees heard an encouraging and engaging discussion via the Talent Pool and Education Committee, featuring instructors of the Collision Engineering program, their students and the repair shop owners who employ them about their experiences and how the program is really helping to shape young people for the collision repair universe. Both instructors agreed that in addition to engaging these students in their program, a key component is finding the right shop managers who are willing to work with these up-and-coming technicians. “We do a lot of footwork with the shops and get to know their cultures and who will be their mentors. That is the biggest piece in all this,” stated Laura Lozano (Contra Costa College). The term EULA (end user license agreement) has been a frequent subject at CIC this past year. The November forum dove a bit deeper into what exactly are the concerns surrounding transparency – or the lack thereof – and the discussion also posed the questions of who is responsible for the data and what should repairers keep in mind when using scan tools. Since so much uncertainty is involved, the best thing a body shop can do is protect the data, which can be done with work authorization forms. Educating the consumer about the data is another key in protecting one’s business. Closing out the day was an exciting event that will undoubtedly be talked about for years to come! Clad in a red-sequined tuxedo jacket, the Estimating and Repair Planning Committee’s very own Danny Gredinberg (Database Enhancement Gateway) took the podium with an equally red-sequined Erin Solis (Certified Collision Group) as co-host to present the one-of-a-kind “Repairidy” game show, filling the the last hour of CIC with applause and chuckles! Contestants Amber Alley (Barsotti’s Body and Fender; San Rafael, CA), Darrell Amberson (LaMettry’s Collision; MN) and Liz Stein (Assured Performance) were good sports as they hit their buzzers to chime in on questions in the following categories: 40 Years of CIC, Repair Planning, Repair Process, Claims, Drop Off and Empty Chair. Alley walked away the winner with 30 points! The buzz has already begun for the next CIC event, set for January 17 in Palm Springs, CA. To register, please visit ciclink.com/schedules. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
24 December 2023
New England Automotive Report
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New England Automotive Report
December 2023 25
26 December 2023
New England Automotive Report
New England Automotive Report
December 2023 27
[NATIONAL] FEATURE
AASP Leaders Take Part in National and Local Level Talks
Meeting for the second time this year, state affiliate leaders of the Alliance of Automotive Service Providers (AASP) considered a number of automotive repair issues on the national level and shared their local wins and goals when they met at SEMA 2023 in Las Vegas in early November. AASP/MA Executive Director Lucky Papageorg, who serves on the national AASP Executive Board as Chair of Executive Directors, reported on AASP/MA’s successful year of garnering legislative support and supplying members of its Alliance with the tools and resources they need to “break free” from the chokehold of thirdparty payers by taking matters into their own hands by educating consumers and instituting balance billing or copay into their business model. “We just completed the third and final part of our ‘Breaking Free in '23’ series,” Papageorg told his colleagues. “It was a great series of meetings. The goal was to get people to understand that we, as an industry, have the ability to control what we collect at the door.” “Now, we are gearing up to ‘get more in '24,’” he continued. “Our most recent meeting featured our new legal advisor who is working to develop a series of forms member shops can obtain. If shops want to thrive by way of copay or balance billing of the under payment for labor and procedures by the insurer, they will need to make sure they are properly documenting the repair procedures.” Papageorg also shared the Alliance’s success in garnering support of its proposed legislation to set a minimum reimbursement rate based on the Consumer Price Index and to reform the ADALB by moving it away from the Division of Insurance over to the Division of Occupational Licensure.
AASP/MA Executive Director Lucky Papageorg updates fellow AASP National Board members on the Alliance's activities in the Commonwealth 28 December 2023
New England Automotive Report
The members of the AASP National Board took part in conversations related to the Right to Repair legislation that was introduced at the federal level this past February. Tod Moore of the Auto Care Association updated the Board on the process of the legislation which supports consumers’ right to be able to choose where they have their car repaired. A number of collision repair professionals, including Society of Collision Repair Specialist Executive Director Aaron Schulenburg and Wayne Weikel, vice president state affairs for the Alliance for Automotive Innovation, came to the table to verify their support of Right to Repair in general while also sharing some concerns in regard to the motives from those who are driving the federal REPAIR Act, such as major insurance players and aftermarket part manufacturers. “Coming from Massachusetts where the movement started, I’ve been supporting the Right to Repair initiative, but as a representative of collision repairers, I have some concerns,” shared Papageorg. “We deal with insurers all the time, and yet, when we show them what is needed to properly repair vehicles, there is pushback. I have concerns about some of the proponents of Right to Repair showing their support. Repair information should be made available, but as an executive director for a collision repair association, I’ve yet to have anyone tell me they can’t get the information they need to repair vehicles under the current set up.” Another shared consideration among repair professionals is the fact there isn’t much detail about how the information would be used, just that it would be accessible. Others brought up concerns about the testing of aftermarket scanning and calibration equipment that could be reverse engineered via access to OEM information and who would be responsible if the equipment were to malfunction and give a false positive that the calibrations were completed properly. “If an aftermarket part, scanning or calibration tool were to fail, someone can die,” commented AASP National President Dan Sjosleth (Superior Service Center; St. Paul, MN). “It’s a difficult battle for our industry to support both sides of this.” Conversations also centered around the success of the invaluable resource that is the Database Enhancement Gateway
by Alana Quartuccio
(DEG). Funded solely by sponsorships, including primary support from AASP National and SCRS, the DEG successfully rolled out an updated website earlier this year, and corrections continue to be made to estimating platforms thanks to inquiries received. DEG Administrator Danny Gredinberg reported the yearto-date total of corrected hours across the three main information provider platforms (Mitchell, CCC and Audatex) totalled 988 for body hours and 242 hours for paint. Some changes included the time-consuming process of rivet gun set up being a non-included operation and the application of seam sealer on bolt-on parts being noted as non-included. Gredinberg also referenced the changes coming via Audatex and CCC in regard to the SCRS blend study. He stressed the importance of continuing to spread the word about the DEG and how submitting inquiries is a great benefit to the entire industry. Most users submit about 10 inquiries per year, with roughly 50 percent resulting in change. Gredinberg emphasized the importance of submitting inquiries. “Even if something doesn’t change, it’s still something we can address.” The AASP National Board continues to communicate throughout the year via virtual meetings. The Board plans to reconvene in person next spring once a date and location is determined.
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MASSACHUSETTS
New England Automotive Report
December 2023 29
30 December 2023
New England Automotive Report
It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers. Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com
Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-587-2900 FAX: 1-413-585-0502 www.liahondanorthampton.com
Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com
Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com
Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com
Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com
Balise Honda 400 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands!
Balise Honda of West Warwick 509 Quaker Lane West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands!
New England Automotive Report
December 2023 31
[COVER] STORY
Did You Break Free in ‘23? From the Hollywood strikes to climate disasters, economic uncertainty and even war on the other side of the globe, most of the news this year has left society feeling shackled to negativity… but body shops located in the Commonwealth received a different message, a message of positivity and peace, as the Alliance offered guidance on “Breaking Free in '23!” “With the momentum we created on many key and critical issues in 2022, coupled with the attention we have received in the media, both locally and nationally, we are poised to see even more advances and successes than we experienced over the past year,” AASP/MA Executive Director Lucky Papageorg said in January, promising “The Alliance will continue to build upon the lessons learned and the relationships developed in the legislature, the media and other potential methods of effectively changing our situation for the better.” And that’s exactly what AASP/MA has done as the organization hit the ground running by reintroducing two key pieces of legislation. The first advocates for amending the Auto Damage Appraiser Licensing Board (ADALB) so it can more effectively protect consumers by having the Board housed under the Division of Occupational Licensure (DOL) rather than the Division of Insurance (DOI). “The auto damage appraiser license is a highly technical license, not an insurance license nor an insurance-carrier related license. Simply put, the auto damage appraiser license is a license of a technical professional who is neither an insurance company nor an insurance producer. The Division of Insurance is there to oversee the business of insurance, not collision repair,” Papageorg explains, 32 December 2023
New England Automotive Report
Get More in ‘24! stressing that the need to add two additional Board members who would “represent the interest of the consumers and avoid partisan disagreements that come up between the insurance industry and the collision repair industry.” AASP/MA’s other legislation seeks to reform the labor reimbursement rate because it’s obvious that the approximately $40 an hour rate at which insurers currently reimburse claimants does not sufficiently cover all the labor and training costs that go into fixing today’s vehicles, which are substantially more technically advanced then they were in 1988…or even five years ago. Although some insurers responded to the 2022 legislation by offering $1 or $2 increases, the nominal raises do little to keep pace with inflation from one year to next…never mind doing anything to account for nearly 40 years of stagnancy. Papageorg calls it what it is: “The insurance industry’s attempt to pacify us with minimal increases is really just that – an insulting attempt at pacification.” Most recently, members of the Alliance joined Papageorg this fall to testify during the Joint Committee on Financial Services hearing. AASP/MA will continue educating legislators and encouraging them to support these key initiatives to help free auto body shops from the undue third-party influence too often exerted by insurance companies. Papageorg promises the association will deliver “education meant to empower independent thinking and help educated shop owners and the vehicle owners they service understand that there is a price to pay for quality safe repairs, to help them realize that the price is not what insurers set; it is the price that is dictated by the changing technology, training and equipment required to
by Chasidy Rae Sisk
repair today’s vehicles. True collision repair professionals cannot be expected to work on today’s vehicles at 30 year old rates.” Education has certainly been the key to breaking free in '23, and many shops have combated the low reimbursement labor rate by educating their customers about the egregious underindemnification issues that run rampant amongst insurance companies and collecting a copay to get reimbursed for the hard work exerted into safely and properly restoring vehicles to their pre-accident condition. But an email circulated near the end of 2022 via the Division of Standards (DOS) frightened shops with allegations that, by doing so, they might be behaving illegally and could potentially lose their collision shop registration! “It is quite clear that the DOS has been weaponized by the insurance industry against the collision industry and specifically against those shops who have made the bold move to collect what they are worth for the repair procedures they have performed on a vehicle to restore it to road worthy functionality, to restore these vehicles to as close to pre-loss condition as possible, while accepting the full liability in doing so,” Papageorg insists. “There is nothing wrong with getting paid fairly and adequately for the work that you do and passing on any costs not covered by the vehicle owner’s insurer in the form of a copay.” AASP/MA engaged the assistance of at-the-time legal counsel Attorney James A. Castleman, Esq. to defend shops’ right to charge customers a copay when insurer payment falls short of covering the cost of a repair. (Get the full details on Castleman’s letter to the DOS at grecopublishing.com/near0523coverstory.) The DOS’ attempt to intimidate collision repairers for all intents and purposes failed; only the less knowledgeable paid the threat any heed,” Papageorg recounts. “It was revealed that the many ‘consumer complaints received’ were actually just three letters of complaint to insurers about their failure to pay a fair and reasonable amount, causing the vehicle owner to pay for what should have been covered expenses, yet since Attorney Castleman wrote a rebuttal letter written by Attorney Castleman challenging the DOS attorney’s position, NOTHING has been heard from them on the subject. Those who have chosen to charge a copay report positive effects to their bottom line and a continued backlog of work, despite the efforts of insurers to steer work away. Educated consumers understand the issue and know at whose feet to lay the blame.” Staying up-to-date on what’s happening in the collision repair industry throughout the country is a vital part of keeping Alliance members informed and moving forward with stronger Commonwealth shops. Papageorg stayed active on the national scene in 2023, attending all three AASP National Board meetings and even being named to the executive committee of the AASP National Board of Directors as Chair of Executive Directors. He attended his first Collision Industry Conference (CIC) over the summer and was thrilled with how much he was able to learn. SEMA 2023 rounded out his travels for the year. “I am truly fortunate to be able to meet with leaders from across the country at AASP-National events, CIC and SEMA,” he shares. “In doing so, I am able to hear about trends in the industry and about ways to assist our members in moving from just surviving to thriving. In turn, I share our successes with programs like
‘Breaking Free In '23’ and how we will help our members succeed in ‘Getting More in '24.’ There is no way to put a value on the information gathered at these events.” All of that jet-setting provided Papageorg with an opportunity to network with some of the industry’s best-known movers and shakers from coast to coast – some of whom traveled to Massachusetts this year to share their knowledge with shops during the Alliance’s three-part “Breaking Free in '23” series. Shops learned “How to Take Back Control of Your Business” from collision industry consultant and well-known speaker Barrett Smith of Auto Damage Experts, who told shops, “You are just as important as a surgeon, doctor, accountant or attorney. You have an immense amount of responsibility to consumers because you are dealing with their safety, their economic well being and the proper restoration of their vehicle.” Renowned national speaker Kristen Felder (Collision Hub) urged shops to know their rights and to back it all up with proper documentation. “At the end of the day, there is the truth, there is what you believe to be your truth and then there's what you can actually defend and work with in court. Sometimes those things are the same. Sometimes they're not. And sometimes even if you're right, going to court isn't really where you want to be because you don’t have the pockets necessary.” The third part of the series featured Rachel James (Torque Financial Group) who shared financial perspectives, as well as an ADAS exploration by Ed and Scott Rachwal (Designer Office Systems) and Mike Johnson (Crown Collision Solutions). 2023 also saw the return of AASP/MA’s chapter meetings in addition to another successful golf outing. “Those who attended the three meetings in the ‘Breaking Free’ series have been provided with the foundation and the keys to being the go-to shops of the future,” Papageorg predicts. “They will continue to solidify their position in the marketplace as the shops who work for their customers and not insurers. In doing so, they have the peace of mind that they are repairing vehicles properly and are being compensated at a rate which allows them to reward their highly skilled employees while accepting the liability for the work and service they have been entrusted to do by the vehicle owner.” All of the Alliance’s efforts this year added up to one thing for shops: the knowledge, support and confidence to break free from the shackles that were binding them and preventing them from moving forward as successful businesses. With the chains broken, Massachusetts shops now have the freedom to “Get More in '24!” “I am excited for what will be accomplished in '24 by those who ‘flicked the switch’ in '23 and have been adding to the success of their businesses,” Papageorg exclaims. “They do so with the knowledge that it may not be tomorrow, next week or even next month, but change is coming and those who have been kowtowing to insurers will no longer be able to survive. The continued changes in technology will leave the so-called ‘competition’ in the dust, and only those who embrace the new business model being dictated by today’s vehicles will be around to reap the benefits… “Where will you be in '24?” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
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[LEGAL] PERSPECTIVE by Sean Preston, Coverall Law
Looking at Your Shop’s Forms: What to Know and Where to Go When was the last time you addressed the deficiencies in your shop’s forms? With changes to the standard insurance policy – and pending changes in the legislature – it is only a matter of time before the clauses in your shop’s forms don’t match the letter of the law. But legislative changes aren’t the most common reason for required updates. You need procedures in place to ensure that your shop’s forms keep up with the changing way we do business and the ever-changing challenges to shops operating in Massachusetts. This is exactly what our firm, Coverall Law, was created to do. At the AASP statewide meeting, Breaking Free in ’23 part 3, members of our industry gathered at the Assabet auditorium in Marlborough to discuss some of the challenges we’re currently seeing. I had the honor of speaking after lunch, covering the legal developments we have witnessed across the Commonwealth over the last year, proper formation and operation of a shop’s legal entity and (of course) shop forms. My colleague, Attorney David Henig, also of Coverall Law, joined in the audience and took exhaustive notes of the lively forum. Audience members from far and wide chimed in with their experiences and questions for us. The energy remained high as the group spent the three afternoon hours working through a 23-question survey, which allowed Attorney Henig and me to compare the similar and differing experiences across our industry when it comes to legal conflict management, total losses, drafting forms and more. Forms out of date? If you think you need updates to your shop’s forms, you are not alone. The many points and questions brought up in the meeting made it clear that shops across Massachusetts recognize their shop’s forms are deficient in one or more ways. Perhaps most striking was the reported age of many of the shops’ forms as represented in the audience. A significant number of questionnaires received reported forms that were twenty years or older! Twenty years ago may seem like only yesterday. But that’s 20 years of leaving money on the table, while avoiding an important investment in your legal infrastructure. And when it has been that long, it’s time to invest in an upgrade. Shops that are updating seem to do so based on the experiences in their individual shop, making little changes where they have been 34 December 2023
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personally burnt before and wondering about the applicability of newer technologies like text messaging and email. But it’s the big picture changes that matter much more. Operating your shop in a vacuum presents constant disadvantages to your shop in areas that other shops have (1) seen, (2) addressed and (3) incorporated into their forms and procedures. New laws and regulations are just the tip of the iceberg when it comes to changes in the legal landscape. There are court decisions in each county which affect your customers and your shop. The AASP meeting is a great place to compare recent experiences in the everevolving challenge of making ends meet and getting paid for the work you perform every day. The more intimate details of the discussions at the October 21 meeting are available by contacting AASP/MA Executive Director Lucky Papageorg. This article seems like a great place to cover some basic legal requirements for shop authorization forms and perhaps some of the additional ideas for your shop to consider. The Essentials Title 940 of the Code of Massachusetts Regulations (“CMR”), section 5.05, part (2) requires written recording of: (a) the customer’s name, address and telephone number, (b) the date and time their vehicle was delivered and its (c) year, make and registration number, along with (d) odometer reading at delivery and (e) the specific repairs requested by the customer or a brief description of the immediate issue. Later in part (7), the CMR asserts that any additional repairs over $10 require customer consent, unless they have a signed waiver per part (3), clause (d). The regulation makes clear that the waiver must be in writing, and (as with all contracts) the customer must adopt the waiver in a “knowing, voluntary and intelligent manner.” The CMR has recommended language which you can be sure conforms and which states that approval is not needed from the adopting customer for repairs not expected to exceed an amount you and the customer can set forth at the time of signing. Storage charges are a crucial piece to include at this stage. None of our shops have an unlimited amount of real estate; those spaces are valuable and need to be available for the next customers coming through the door. Similar to outside storage, inside storage is likely to be at a premium, and part (4) of the above CMR dictates that the customer must be informed of your storage policy and rates. continued on pg. 38
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December 2023 35
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36 December 2023
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[LEGAL] PERSPECTIVE continued from pg. 34 While a posted sign may be sufficient notice, I highly recommend including this in your shop’s forms, along with notification that the customer may inspect or receive any old or damaged parts being replaced. Of note, in that same regulation, you must inform them of your estimate or diagnosis charge. Again, the above can be accomplished by posting it on your premises, but shop forms are better, and both are best. You need to maintain written records any time you receive oral authorization. Nowadays, I’d prefer your shop to get authorization via an email or even a text message, but the CMR does lay out that your shop records the date and time of any supplemental authorization, along with the shop employee receiving the authorization and who gave the authorization. These authorization records must include the specific authorization received and the authorizing person’s phone number if the shop initiated the call. Per part (9), at the conclusion of the repair when closing your customer’s file, the CMRs require several things which can be accomplished on an invoice stating: (a) names and addresses of customer and shop, (b) date vehicle was delivered to shop and (c) vehicle odometer reading on delivery date. Those three mirror the required recordings from the start of the relationship in part (2) above. But part (9) requires (d) an itemized list of repairs performed on the vehicle and (e) a list of each part supplied, by name and number of parts, with each part’s price as well as the total charged for the parts. Note that per part (f ), any used parts must be expressly classified as “used, reconditioned, or rebuilt.” Finally, in addition to the totals for parts and labor, part (g) requires the number of hours and hourly rate charged and their designations as either flat rate or actual hours. But what is missing in everyone’s forms? Up to this point, I haven’t seen a single shop in Massachusetts that’s properly updating their shop forms. Just as the only constant in life is change, shops need to be conscious of movement in the legislature, decisions of the courts, and updates in the best practices and technological effects on the way we do business, as well as changes in the actions and activities of the other interested parties – namely, vehicle owners, lessors and insurers. Your shop’s forms should establish the rights and responsibilities of the parties, defining each with specificity and considering the rights and roles of financing companies and insurers. The customer has a recognized freedom to contract, but in your shop’s forms, you must be cognizant that the terms put the customer in a profitable position given the circumstances. In other words, the deal must make sense to each party. While many shops enlist a direction to pay to receive direct payment from the insurer, there may be circumstances where it makes sense to step into the customer’s position through an 38 December 2023
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assignment of rights. The customer is entitled to payment from the insurer, and rarely can a customer be expected to effectively advocate for themselves. Total losses are becoming increasingly common. Your shop can make clear what your processes and procedures are for handling vehicle intake and analysis, explain the value added and assert that your shop will be compensated. Similarly, the customer can be put on notice that any short pay from their insurer in a total loss must be explained by the insurer, with clear relation to their policy language and the circumstances of the matter. The terms and conditions of any contract are an important piece that can dictate the rules of future conflict and save terms within a contract when challenged in the future. For example, choice of law and venue dictate what rules apply and which court is going to be hearing your matter. Most of the forms I’ve seen don’t consider these things. Each shop in Massachusetts ought to take the time to address their shop forms. Drafting a shop’s forms is among the first things I did for a collision repair client when I began serving this industry more than a year ago, and I’ve spent the last six months researching Massachusetts case law, comparing forms, talking to countless people in the industry and defending shops so I can confidently offer the highest quality shop forms for the clients of Coverall Law. What do the best forms look like? With the help of several other attorneys from Massachusetts and beyond, Coverall Law is prepared to offer customized shop forms for the protection of Massachusetts shops, plus we will monitor developments across the state and provide updates for life so that shops never have to worry about forms again and help implement these customized forms into each shop’s daily routine so that the forms are properly used to give the maximum protection to your shop. Shops across the country have witnessed evolving strategies which always seem to end in either shortchanging the shop, shortchanging the customer or both. The best forms give your shop the legal foundation needed to present a realistic legal challenge. And partnering with Coverall Law is your opportunity to have someone in your corner watching out for those changes and keeping you one step ahead for the survival of your business. This is not a one-size-fits-all approach. My travels to different shops have made it clear that the needs of each shop are as starkly different as the owners and managers running those shops. If you think your shop’s forms are pretty close, you can circle around with us for a review of your shop forms and a write-up of any recommendations we might have. It’s a way to connect with Coverall Law, meet some of our people and see some of our work. But if you’re ready to hand this off, contact us to have Coverall continued on pg. 42
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December 2023 39
PRESIDENT'S MESSAGE
EXECUTIVE DIRECTOR'S MESSAGE
continued from pg. 6
continued from pg. 8
and employees budget and plan for retirement, and Attorney Sean Preston of Coverall Law, who wants to help auto body repair facilities update their contracts and other documentation. The companies we’ve teamed up with won’t just help you save money (possibly a LOT of money!), they also support our association so they’ll be making our industry better for all of us. More details about AASP/MA’s member benefits are available at aaspma.org/member-benefits. The Alliance offers so many programs to help shops remain competitive. We’ve done all the legwork; you just have to give them a call and get started. So, take advantage of AASP/MA’s efforts on your behalf if you’re interested in doing and making more in 2024! The potential savings will more than cover your annual dues, and all you have to do is take the first step.
restoration process to pre-loss functionality of a vehicle, then you are wasting your time. You must make the decision to do what is right even when it is not easy. At SEMA, there are several awards that are given out for being an outstanding “this or that.” One of the more meaningful awards is presented by SCRS in memory of March Taylor who owned a body shop on the big island of Hawaii. It is known as the “Kina’ole” award. The word describes a mindset, a way of living your life, and in the case of collision repairers, this is something we should all strive for. The concept of “Kina’ole” exemplified March’s philosophy: “Doing the right thing, in the right way, at the right time, in the right place, for the right individual, for the right reason, with the right feeling, the first time.” Practicing this concept in your everyday life and business practices will ensure you are NOT wasting your time!!
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA PRESIDENT KEVIN GALLERANI is president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com.
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org.
One Call, One Truck for 14 Brands!
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• Mentoring Opportunities womensindustrynetwork.com
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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
New England Automotive Report
December 2023 41
[LEGAL] PERSPECTIVE continued from pg. 38 Law draft your shop’s forms, help you make them your own and implement them into your shop’s systems and procedures. You should consider getting lifetime updates, because Coverall Law is keeping their pulse on our industry, and this changing legal landscape is guaranteed to require changes to our legal footing (meaning, our forms). If for any reason the above isn’t enough reason to join our cause, then please email me and ask about our Litigation Guarantee. It’s your own insurance policy that says, “In case any of the clauses in these forms aren’t enforced in a judicial court of law, Coverall Law will pay your legal fees….” If you have any questions about your current customer intake forms, contact me with any questions about our services. If you elect to utilize these services from Coverall Law, you will never have to worry about your shop’s forms again. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
ADVERTISERS’ INDEX Accudraft Paint Booths............................... OBC Albert Kemperle..............................................22 Audi Group.....................................................21 Balise...............................................................18 BMW Group.....................................................4 Boch Chevrolet (GM Parts Group)..................13 Boch Hyundai.................................................25 Colonial Auto Group.........................................2 Coverall Law....................................................39
Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or spreston@coveralllaw.com.
Crown Collision Solutions...............................13 Empire Auto Parts...........................................42 Ford Group.....................................................41 Grieco Toyota..................................................13 Honda Group..................................................31 Hyundai Group...............................................39 Ira Subaru........................................................14 Ira Toyota of Danvers......................................15 Kelly Automotive Group.............................. IBC Kia Group.......................................................39 Lombard Equipment.......................................11 Long Automotive Group.................................26 Mazda Group..................................................40 Mopar Group..................................................27 Nissan Group..................................................36 Quirk Wholesale Parts.....................................23 Sarat Ford Lincoln...........................................29 Shop For Sale...................................................14 Spanesi............................................................25 SprayBooth For Sale........................................37 Subaru Group....................................................9 Thomas Greco Publishing................................29 Toyota Group..................................................20 USI North America.........................................35 Volvo Group....................................................41 VW Group........................................................3 Wagner Motors................................................30
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WIN................................................................41
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