Texas Automotive March 2021

The official publication of the Auto Body Association of Texas

March 2021 $5.95

ABAT’S PATH TO

CONSUMER

PROTECTION:: PROTECTION INSIDE House bill 1131 PLUS:

• “Opt OE” Parts: Buyer Beware!

• The Wackometer • Time to Get Personal www.grecopublishing.com

Contents

MARCH 2021

on the

cover

Official publication of the Auto Body Association of Texas

ABAT’S PATH TO CONSUMER PROTECTION: Inside House Bill 1131

ABAT BOARD OF DIRECTORS

14

by Joel Gausten

DEPARTMENTS

4 4

6 6 7 8 10 18

PRESIDENT’S MESSAGE by Burl Richards The Wackometer ABAT MEMBER CALL TO ACTION Give Your Consumers a Voice!

EXECUTIVE DIRECTOR’S MESSAGE by Jill Tuggle Legislative Update: Time to Get Personal

President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082

Vice President Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

Treasurer David Osburn Paint Works davidosburn@paintworkstyler.com (817) 648-5797

Executive Director Jill Tuggle jill@abat.us (817) 899-0554

ABAT BOARD MEMBERS Bobby Beason DeMontrond Collision Center bobby.beason@demontrond.com (936) 577-2747

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

Larry Cernosek Deer Park Paint & Body lcwrecker@comcast.net (281) 930-1539

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

Logan Payne Payne & Sons Paint & Body logan@paynescollision.com­ (214) 321-4362

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564

John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391

Greg Luther Helfman Collision gluther@helfman.com (713) 574-5060

Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

2021 TEXAS AUTO BODY TRADE SHOW ANNOUNCEMENT ABAT MEMBER APPLICATION

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

LOCAL NEWS by Joel Gausten Buyer Beware: “Opt OE” Parts on the Rise in Texas

PUBLISHER Thomas Greco / thomas@grecopublishing.com

VENDOR SPOTLIGHT by Alana Bonillo USI North America Offers Industry Solutions throughout Texas & Beyond INDUSTRY ADVICE: ASK MIKE How Can Shops Improve Their Capture Rates?

SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco / joe@grecopublishing.com

ADVERTISERS’ INDEX 300 Advantage..................................................... 20

Innovative Collision Equipment........................ 22

Auto Claim Specialists........................................ 21

Paint Works Dallas............................................... IFC

Beacon Equipment Resources......................... 9

PPG.......................................................................... 17

BOLT ON TECHNOLOGY.................................. 5

Reliable Automotive Equipment....................... 12-13

CAR-O-LINER Southwest................................... 16

Sherwin-Williams.................................................. OBC

Ecotech................................................................... IBC

Tasco Auto Color................................................. 19

English Color & Supply....................................... 15

USI North America............................................... 11

FindPigtails.com.................................................... 15

Wheel Technologies........................................... 19 3 MARCH 2021 Texas Automotive

www.grecopublishing.com

TEXAS AUTOMOTIVE is published monthly and is sent to ABAT members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2021 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor.

Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www. istockphoto.com.

President’s Message

THE WACKOMETER

I

Burl Richards ABAT President

It’s time to put some real pressure on insurers to do the right thing for their customers.

One trend we’re seeing at my shop (and I’m sure plenty of you are seeing at yours as well) is insurers under-indemnifying their insureds on total losses by deducting some of my charges from their policyholders’ settlements. A lot of my customers aren’t aware that this is happening to them, but it’s definitely becoming a sad reality. This is a very serious issue, and I’d like to hear from other ABAT members who’ve seen this happen to consumers. We fully intend to keep this matter front and center and make sure that the Texas Department of Insurance (TDI) is made fully aware of what’s going on.

On a similar note, it’s crazy to me that an insurer (in this case, State Farm) can ask my shop to write an estimate (based on a disassembly of the vehicle) and take/upload the photos right before that same company turns around, deems my charges unacceptable and deducts my charges from what the customer deserves. Here’s my question for those companies: If you think my charges are unnecessary, then why don’t you come here, take the photos, look up the OEM procedures and write the estimate? Come here and do all the work we’re doing for you, and maybe then we can talk about you removing the charges you don’t like. In the meantime, don’t expect to have your cake and eat it, too.

In related news, COVID-19 is still going strong enough in our state to give State Farm another excuse to give me grief.

Unfortunately, that company in particular refuses to send an adjuster to my shop to look at a vehicle. State Farm requests that we write an estimate and forward photos. From there, it puts my professional estimate through the Wackometer in ways that cut its costs and under-indemnify its consumers in alarming ways.

How much money is State Farm saving by not sending appraisers out to my shop or anyone else’s? Are those costs being deducted from premiums? The bottom line is that body shops are small businesses, and small businesses survive by truly caring for their customers. I have a hard time with major corporations taking advantage of Texas consumers. Please check out this month’s cover story on our recently filed bill that aims to turn things around for the motorists who depend on us – and be on the lookout for more ABAT legislative news soon. We’re not about to keep watching what insurance companies are doing to our fellow citizens without a fight. TXA

burl@burlscollision.com

ATTN: ABAT MEMBERS! GIVE YOUR CONSUMERS A VOICE! If you have customers who’ve had issues with their insurance companies (under-indemnification, total loss disputes, etc.) while their vehicles were at your shop, Texas Automotive magazine wants to hear their stories!

Please reach out to Texas Automotive Editorial Director Joel Gausten at (603) 680-4324 or joel@grecopublishing.com to discuss having your customer’s story featured in our newest series, “The Consumer’s Voice”!

4 MARCH 2021 Texas Automotive

5 MARCH 2021 Texas Automotive

Executive Director’s Message

LEGISLATIVE UPDATE: TIME TO GET PERSONAL

P

Passing legislation is never easy, but as we enter into Texas’ 87th legislative session, a whole new set of odds are stacked against us.

The redrawing of districts will happen this session, and that alone will consume much of our legislators’ time and energy. Then, we add in the bills that have been filed addressing COVID-19 issues and the fallout from the “snow-mageddon” that is happening as I write this message. However, ABAT has always stood up and fought – even when it is going to be a hard fight. As we have pointed out before, ABAT is not a consulting firm here to make changes for you.

ABAT is you, the Texas body shop. And this time, we need each and every one of you.

The ONLY way for us to pass legislation is for our issues to become real to the representatives in each district. This has to become personal. They must know these issues are happening in their districts and to their constituents – not just in Henderson. We have several ways that you can do your part to pass legislation.

Back in the fall, we launched a campaign to get our customers involved. We wanted both legislators and the Texas Department of Insurance to hear from consumers and not just body shops.

This form includes checkboxes that the consumer can initial next to the issues they faced by being under-indemnified by the insurance company. ABAT then sends those forms to the customers’ legislators. We petitioned you all to get involved in sending these forms to us, and a few of you have. We have collected fewer than 250 forms – about a quarter of our goal. Twenty-seven shops have sent in at least one form. Are you one of them?

ABAT has again partnered with Texas Watch this session to bring awareness to our bills. Texas Watch uses its huge Jill Tuggle ABAT Executive Director social media following to get the public involved not only for awareness but for advocacy. They have set up an easy way to let your legislators know that you need them to vote “YES” to HB 1131. Visit texaswatch.org/safe-repairs to fill out a quick and easy form that will send a letter to all of your legislators for you. It is a simple and effective way to get your customers, friends and family involved. If you take just 30 seconds to do this, imagine what the 5,000-plus readers of Texas Automotive could accomplish.

If you want to contact your legislators on your own, Google “Who Represents Me in Texas?” or go to wrm.capitol.texas.gov/ home and contact your Texas House Representative and Texas Senator. Mention that they should vote “YES” to HB 1131. To read our bill, go to bit.ly/HB_1131.

We cannot stress it enough – we need you! All you have to do is send ONE email or make TWO phone calls. If we don’t pass this legislation, it will be because not enough shops got involved – plain and simple. Do this for you, your employees and, most of all, the families riding in the cars you fix. TXA jill@abat.com

September 17 - 18 TEXAS AUTO BODY TRADE SHOW

2021

Irving Convention Center at Las Colinas, Irving, TX For more information, please contact Jill Tuggle - ABAT Executive Director (817) 899-0554 / jill@abat.us

Surrounded by the exciting Toyota Music Factory!

6 MARCH 2021 Texas Automotive

7 MARCH 2021 Texas Automotive

Local News

Buyer Beware: “Opt OE” Parts on the Rise in Texas In 2021, it is not uncommon to see the term “Opt OE” (or variants such as “Alt OE” or “Surplus OE”) on estimates and in listings offered by suppliers. But what exactly does it mean? Unfortunately, there isn’t a clear answer – and that could spell trouble for the Texas collision repair community.

In some cases, an “Opt OE” part is one that is offered by a third-party seller (typically found online) that was actually manufactured for use outside of the US. Although these parts can be purchased by repairers here, they may not adhere to the same engineering and performance standards as those products directly sold by OEM-endorsed sources in America. Unfortunately, the issues with “Opt OE” parts don’t end there. Texas Automotive has heard from readers that certain part suppliers that commonly do business with Lone Star State shops are using “Opt OE” to classify factory parts they’re selling below OEM list price to make themselves more attractive to insurers. In other instances, “Opt OE” is being used to identify OEM parts that have already been on vehicles.

With no solid inter-industry definition for it, it appears that “Opt OE” is being used for just about anything.

Logan Payne, manager at Payne & Sons Paint and Body Shop, Inc. in Dallas, is no stranger to the growing ambiguity surrounding so-called “Opt OE” parts.

“They’re all over the place. We’ve seen ‘Opt OE’ parts come in that are actually ‘take-off’ parts from somewhere and already have paint on them. Those are basically used parts. The additional labor to prep those parts into making them ‘like-new condition’ is no longer cost-effective. We’ve also seen ‘Opt OE’ parts that appear to be new, factory parts that are packaged and labeled the way they’re supposed to be. However, there are auto manufacturers – like Toyota, for instance – that don’t approve the sale of ‘Opt OE’ parts, so we’re curious where they’re coming from and if they are really factory parts. It’s a big grey area, unfortunately.”

Additionally, Payne tells Texas Automotive that he has received reports from fellow ABAT members that certain part vendors are using the “Opt OE” tag to identify OEM parts that have been volume discounted at an insurer’s request.

“These places are just altering the list price and calling it something else. That’s manipulating the market, in my opinion.”

In cases where he receives a part from an insurer-suggested vendor that is not up to true OEM quality, Payne has solved the matter by bringing the poor-quality item to the carrier’s attention. This ultimately prompts the insurer to approve the use of a proper OEM part.

Greg Luther, body shop operations director for the multilocation Helfman Collision Center, has also seen “Opt OE” parts grow in prominence in recent months – even if the term is foggy at best.

“Typically speaking, no one knows where these parts come from. When you call [certain vendors] and talk to them, it’s usually just a fictitious price that a dealer has put into a computer system to get a phone call. Ultimately, it’s just an advertising ploy. From a manufacturers’ standpoint, they’re actually very against it, because there are some ‘Opt OE’ parts listed out there that are not factory-approved parts. These parts are coming from other countries and [being] brought into the US illegally and being sold as ‘Opt OE.’ The insurance carriers are leading the vehicle owners to believe that they’re the same parts that come from their local dealers but just sold cheaper.”

Although Helfman does not reduce its OEM list prices, Luther says the dealership chain does list some parts as “Opt

8 MARCH 2021 Texas Automotive

by Joel Gausten

OE” for the simple fact that “everybody else is doing it.”

However, he is quick to note that critical differences exist between Helfman’s approach to “Opt OE” and how they are utilized (some might say exploited) by vendors that are slashing prices to entice insurers.

“Although our dealerships’ prices are not being manipulated, they are putting the name ‘Opt OE’ on parts so they pop up on an estimating system. But we are indeed selling factory parts with dealer invoices. We’re not buying them from outside sources.”

Additionally, Helfman bills shops OEM prices for the genuine OEM parts they provide regardless of the “Opt OE” designation given to these products on a database.

“Even if the part’s price is the same as a factory-list price, the insurance companies will select it if it comes up as ‘Opt OE’ because the appraisers are graded off of their alternative parts usage […] This is strictly an advertising thing through the information database.”

With so much mystery surrounding parts classifications and definitions, Payne believes that the best way for repairers to ensure they are using the right OEM products is to utilize only those vendors they know and trust.

“I think the industry as a whole needs to recognize that if

you’re buying a part from an unauthorized dealer for an ‘OEM’ part, then you should really question what it is and care more about the repairs being performed on their customers’ cars.

Insurers are looking to save money. While that is a logical thing to do as an insurance company – and I understand that – you need to at least pay what it’s going to cost to fix the car in a safe manner. We can’t guarantee our repairs based on parts that we don’t know anything about.”

In Luther’s mind, the “Opt OE” mystery will only be solved once insurers are dissuaded from adding so many shades of grey to what should always be a black-and-white repair process based on OEM-recommended/required standards for consumer safety.

“The carrier needs to have some liability in the parts that they use. As long as the carrier has zero liability in the repair process, they should have zero decision in how the car’s repaired.”

More insight into the “Opt OE” controversy can be found in the November 2019 issue of Texas Automotive, available online at grecopublishing.com. TXA

9 MARCH 2021 Texas Automotive

VENDOR SPOTLIGHT

by Alana Bonillo

USI North America OFFERS INDUSTRY Solutions Throughout Texas & Beyond USI Italia is known worldwide for its innovative spray What really makes USI stand out is that the company booth technology. The company first made its mark in the doesn’t just offer equipment – it also provides industry 1970s before making its way into the US market by way of solutions. While its most basic booth model does it all, its various distributors. By 1998, USI established an official more advanced one comes equipped with the highest level of American branch, USI North America, to serve the growing computer technology available. These advancements walk the need for its products in this country. painter through the entire process to help eliminate human Shops familiar with the brand know that USI’s unique error. technology is proven to help improve speed and productivity “We recognize that painters have many other things to do on the shop floor – especially as industry trends continue to and think about. The painter can introduce the parameters of revolutionize what is needed in a booth. what he is going to paint, giving them the optimal recipe for “As body shops have had to switch to waterborne paint – the bake, flash off and spray time for the overall process.” something that has been happening for years now, including Additionally, USI’s top-of-the-line spray booth comes in the US – the process equipped with a slowed down, as paint management program booths were not able to that allows the end-user process these waterborne to oversee production products and remain as by giving them data that productive,” USI North shows how much time is America National Sales being spent, step by step Manager Stefano Moretto – and potentially lost explains. “This is because – during the process. waterborne paint needs This enables the shop more air or a higher to better monitor and temperature to evaporate reduce wasted time and than solvent, and that energy. uses more energy. Most USI’s equipment paint booths would then is also connected to live require the need to add tech support that can pictured above: USI CHRONOTECH SPRAYBOOTH a blower system to speed troubleshoot any issues up the flash-off process. that arise. USI’s remote With USI paint booths, blowers are not needed.” customer service has been operative since 2008.

USI’s advancements have helped users save time while Not surprisingly, USI has found great success in the Texas avoiding dirt and static problems in the booth. Its paint booths market. Moretto looks forward to the company’s continued save 17 minutes on waterborne paint applications and another work with the ABAT community – from participating in the 15 minutes on the clear coat baking or curing process. The Texas Auto Body Trade Show to always providing members booths’ construction is able to deliver the highest airflow; as with exceptional products and services. for heat capacity, USI installs 1.5MBTU direct flame burners, “Texas is a big state for us,” he says. ”We really enjoy being which Moretto stresses is the right proportion to handle that there.” TXA amount of airflow.

10 MARCH 2021 Texas Automotive

Russell & Smith Logging Big Paint Hours with USI Booths & Prep Station Buying a paint booth is a huge investment, and there are many factors to carefully consider before selecting one. Will the booth work well in a region where there’s a ton of humidity and with drastic changes in the weather? How long do you think the booth will last and will it require a lot of maintenance? Will your painters be comfortable using it every day and finally, will the company making the booth provide solid training and reliable customer service?

To answer these questions before acquiring two Chronotech spray booths and a prep deck from USI ITALIA back in 2004, Collision Center Manager Kevin McIllveen at Russell & Smith Body Shop in Houston, TX spent six months studying the market. He was looking for the best booths that matched his needs to use in a brand-new 36,000 sq. ft. facility that the company built from the ground up.

Mcllveen, age 56, entered the industry more than three decades ago as an estimator and has worked for Russell & Smith Body Shop since 1993.

His goal with his new spray booths was to improve the efficiencies in his paint department and to accommodate his production, he said, while simultaneously saving time and energy if possible.

The vetting process was arduous but worth it in the end. "We did our research so that we could make an educated decision," he said. "I went to NACE two years in a row and talked to literally everyone and asked a lot of questions. We knew that this was going to be a very significant investment, so we took the time to perform our due diligence to cover all our bases. We invested in their prep stations as well, which was another good decision, because my guys can work so much faster and effectively with five different places where we can spray. We put a curtain up in the prep booth that provides us two additional spaces that are heated and properly ventilated. So, when we are really jammed, we can handle the workload and maintain our cycle time without interrupting or slowing down our production."

After using them for a very short time, Mcllveen could clearly see that his Chronotechs were more than capable as they quickly became a centerpiece in his new, high-end, modern shop.

"We have four paint teams here, consisting of a painter and a painter’s helper and we consistently log approximately 600-700 paint hours weekly,” he said. “We switched to waterborne paint when we opened this facility because we want to provide a healthier climate for our employees and the community as a whole.”

Why was Mcllveen able to improve his numbers by simply adding two USI booths? “In the end, it all comes down to their airflow because we never need blowers or additional air to cure these vehicles. The fans in these Chronotechs are exceptional because they feature variable speeds, so we can switch depending on the parameters of each job. Our painters are producing an impressive product day after day, so these booths are saving us both time and money. We paint an average of 400 cars every month, so

we push these booths and they never let us down.”

Any issues that Russell & Smith Body Shop have encountered with their USI ITALIA booths have been rare and far between. But Mcllveen feels good knowing that if called upon, the company will respond and find solutions promptly. “If you do your scheduled maintenance and keep everything clean, these booths will last you 30 years and maybe even longer. The issues that we have encountered with the Chronotechs have been minor and quickly solved, which is impressive when you think that we have been using these booths daily for the last 16 years. I tell people that these booths will be here long after I’ve retired!”

After training provided by USI ITALIA, Mcllveen’s painters were able to start spraying after one day, he said. "The Chronotechs are designed to work with waterborne paint, which makes it easier for our painters to do their work.

After a very short time, all of our guys were comfortable and the results were consistently exceptional.”

Mcllveen is also impressed by the Chronotech's sturdy construction and durability.

"Some booths are just a box, but these are wellbuilt," he said. “I know, because I've seen them all and there isn't anything like a USI ITALIA booth."

His career in collision repair industry has been a great experience and products like his USI ITALIA spray booths and prep station are a part of that, he said. “We haven’t had to furlough anybody here and that’s because we value our people and, in the end, our Chronotechs are part of the team.”

USI of North America | 565 Commerce Street Franklin Lakes, NJ 07417 | 201-405-7761 | s.moretto@usius.com | www.usius.com 11 MARCH 2021 Texas Automotive

Cover Story

by Joel Gausten

ABAT’s Path to Consumer Protection:

Inside House Bill 1131

“The biggest consumer safety-related legal matter to ever impact the collision industry – the John Eagle case – happened right here in Texas, so it is the responsibility of our state’s repairers, insurers and legislators to work to make sure that something like that never happens again.”

ABAT President Burl Richards In 2019, ABAT made national headlines with House Bill 1348, otherwise known as the Auto Body Insurance Accountability Bill. Sponsored by Representative Travis Clardy (R-Nacogdoches), the association-driven consumer protection legislation earned major attention when Marcia Seebachan – who, along with her husband, Matthew, successfully sued John Eagle Collision Center in Dallas for millions after suffering permanent injuries when their improperly repaired Honda Fit was involved in a subsequent collision – delivered heart-rending testimony in support of its passage. Although the previous legislation ran out of time before the bill could reach the finish line, ABAT’s mission has returned in 2021 with a recently refiled updated version, House Bill 1131.

Again sponsored in the House by Representative Clardy (with efforts underway to get a companion bill filed in the Senate), the current incarnation differs slightly from the original 2019 bill in regard to parts.

“In the last session, we made a committee substitute,” explains ABAT Lobbyist Jacob Smith. “Instead of requiring OEM parts, we required that the part can come from anywhere as long as it meets the same safety requirements and safety standards as the OEM parts do.”

Although the Texas Legislature is still dealing with the realities of COVID-19 (and now needs to contend with the additional burdens imposed by recent weather disasters), Smith is hopeful that House Bill 1131 will make a substantial impact in this current session.

“It’s a great bill; it has everything to do with safety for consumers and safety on the road. Legislators can get behind it and know that it’s good for their districts. It’s also a bipartisan

bill, which is huge. The biggest hurdle is going to be getting it to the floor and in front of some of the bills that are addressing the emergencies we’ve had in the past year. But if we get it to the floor, I think it’s going to pass. It’s all about fighting the clock.

“The biggest thing that people can do as constituents – whether it be the body shop owner, an associate at the shop or a consumer – is to contact their state representative or senator and let them know what they’re facing and how they’re being treated,” he continues.

“They need to let their local legislators know that this is a huge issue to them. That will elevate the importance of this bill at the Legislature. If legislators know this is a home issue in their district, they’re more likely to make it a priority.”

ABAT President Burl Richards urges members to do all they can to help the bill move forward for the benefit of the Texas motorists they protect on a daily basis.

“Although ‘Auto Body’ is part of our name, ABAT always strives to be a consumer advocacy group first and foremost. This bill has been filed to help ensure that Texas drivers always receive safe and professional care during the repair of their motor vehicles.

The biggest consumer safety-related legal matter to ever impact the collision industry – the John Eagle case – happened right here in Texas, so it is the responsibility of our state’s repairers, insurers and legislators to work to make sure that something like that never happens again. We’re hopeful that the bill will pass and serve as a model for other states in creating an environment that protects the rights and wellbeing of consumers.”

The full text of House Bill 1131 is available at bit.ly/HB_1131.

TXA

14 MARCH 2021 Texas Automotive

15 MARCH 2021 Texas Automotive

16 MARCH 2021 Texas Automotive

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Industry Advice: ASK MIKE

how can shops improve their capture rates?

In this special Q&A, we “ASK MIKE” for his thoughts on how shops can improve their capture rates even in the age of COVID-19. We at Texas Automotive hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of

Texas Automotive: Many shops have seen their sales decline due to COVID-19. What are some things that shops can do this year to hopefully improve their capture rates despite the ongoing pandemic?

Mike Anderson: When it comes to improving capture rate, there’s the initial contact when a prospective customer reaches out to you through your website, Google My Business listing, a DRP assignment or whatever the case may be. You have to make sure you’re prioritizing and following up on those requests in a timely manner. The reality we see is that estimators are so bogged down with work that they think, ‘Man, if I’m going to bring this person in, I’m not going to get out of here on time today or get this supplement written.’ I understand that, but it results in them not getting back to the customer in a timely manner and that customer going somewhere else. I’m not saying that MSOs are good or bad, but some of them have call centers to handle contact from customers so that their estimators are not emotionally attached to the workload. So, I think step one is making

sure you have a dedicated person who prioritizes following up on assignments or estimate requests when you get them.

The second thing is setting up your staff for success in capturing the job when the estimate is written. One of the exercises I did at my shops was bringing all of my staff together to discuss what they thought were the reasons why somebody wouldn’t schedule an appointment with us. This led to the creation of a document I put together called “Overcoming Objections,” which is available for free in the “Sales and Marketing Best Practices” section of my Collision Advice website [collisionadvice.com/sales-marketingbest-practices]. Bear in mind that the document hasn’t been updated since I ran my shops years ago, but I feel a lot of the things in it are still relevant today. For example, if a customer objects to using your shop because another facility has offered them a free loaner car, you could offer to give the owner a ride to work within a 10-mile radius or you can use your judgment outside of this zone if you feel it is a profitable job. As another example, if a customer continued on pg. 20

18 MARCH 2021 Texas Automotive

Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

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Industry Advice: ASK MIKE continued from pg. 18 objects to using you because their insurer said you’re difficult to work with, you can explain that’s because you work for them – not the insurance company – and give them an overview of your investment in the proper training, tools and equipment.

Whatever those customer objections are, work with your staff to figure out how to handle the situation by coming up with sales scripts to overcome them.

The third step is following up when a customer doesn’t commit to an appointment. It’s simply about following up the next day and documenting the reason why the customer didn’t schedule an appointment. I work with a large client who found that if they just called the day after they wrote an estimate, they captured 20 percent of those previously lost jobs. I recommend following up with the customer one day after, three days after and five days after the estimate if they don’t schedule an appointment.

On top of all of this, I think it’s important to look at some basic sales techniques. Consumers are looking for three things: Truth, empathy and direction. Customers want to do business with people they trust. Make sure you have really good online reviews so they will help you get those leads and customers can see that people are saying good things about you and they’re making a good choice.

The second thing that customers are looking for is

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The average consumer has an accident once every 10 years, and they don’t know how the whole process works. I always say that customers don’t want a lecture; they just want their car fixed. empathy – not sympathy. Sympathy is feeling sorry for someone; empathy is about feeling their pain. We need to make sure we’re not callous. Some people who’ve been in the industry a long time can get very callous and not give that personal touch.

The third thing that consumers want is direction. The average consumer has an accident once every 10 years, and they don’t know how the whole process works. I always say that customers don’t want a lecture; they just want their car fixed.

What we need to do is take the time to educate them. Think of a triangle with a point at the top as increments of time. Most shops are spending very little time with the consumer at the beginning, and then those shops have to address ‘one more thing’ as they go through the process of dealing with those customers. I like to reverse that triangle and spend more time with the customer on the front end and educate them on why I’m the right person to fix their car.

TXA: COVID-19 is obviously not a positive situation for a number of reasons. But in the year that shops have had to adapt to it, have you seen things that shops have done – whether through technology or just standard practices – that you feel COVID-19 inspired to the industry’s benefit?

MA: Absolutely. Scheduling. Before, we always had this mindset that we needed to bring all the cars in on a Monday morning at the same time. COVID-19 actually gave us the perfect excuse to stagger drop-offs. We can now explain to the customer that we have to practice social distancing and therefore need to stagger the drop-offs. Consumers understand that, and it gives us more time to not have all these cars come in on top of each other. TXA

20 March 2021 Texas Automotive

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21 MARCH 2021 Texas Automotive

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22 March MARCH 2021 Texas Automotive