Texas Automotive June 2020 by Thomas Greco Publishing, Inc.

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JUNE 2020

A NEW WORLD:

ABAT and BASF

HELP SHOPS ADAPT to COVID-19

X CORONAVIRUS: Industry Leaders Respond

X Closing the MONEY GAPS

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Contents

June 2020

on the

cover

Oﬃcial publication of the Auto Body Association of Texas

A NEW WORLD ABAT and BASF Help Shops Adapt to COVID-19

ABAT BOARD OF DIRECTORS Vice President Eric McKenzie

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

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

8 14

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

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

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

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

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

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

DEPARTMENTS

Treasurer David Osburn South West Collision Center dosburn@southwestautogroup.com (855) 395-2720

ABAT BOARD MEMBERS

By Joel Gausten

Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

PRESIDENT’S MESSAGE By Burl Richards Closing the Money Gaps

EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle What We Can Learn from Coronavirus and Glued Roofs

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

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

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

Logan Payne Payne & Sons Paint & Body logan@payneandsons.net (214) 321-4362

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391 Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

2020 TEXAS AUTO BODY TRADE SHOW ANNOUNCEMENT PUBLISHER Thomas Greco / thomas@grecopublishing.com

NATIONAL FEATURE By Joel Gausten COVID-19 Questions and Answers: Industry Leaders Respond

SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert / lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com

ASK THE EXPERT By Robert L. McDorman “How Can You Help Our Clients When Insurers Refuse to Return Vehicles Back to Pre-Loss Condition?

EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

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Charles Maund Toyota........................................6

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Complete Collision Equipment/Spanesi ........11

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5 June 2020 Texas Automotive

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 © 2020 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

Closing the Money Gaps As we continue to move through one of the most stressful springs our industry and nation have ever experienced, I hope you, your businesses and your employees are succeeding in meeting these unprecedented challenges and providing the best possible services to your customers. Although it appears that America is slowly getting back to at least some level of normalcy as I write this message, we still have a very long road ahead of us. In addition to finding new ways to ensure greater health and safety at our shops, we have seen recent changes to this industry that could have a lasting eﬀect on how we operate. For one thing, almost all of the insurers I deal with have gone “virtual” over the last few months. While this practice falls in line with the need for social distancing, it presents some major issues for collision repairers. Based on my recent experiences, it’s clear that many of the people now reviewing estimates in a remote fashion lack the experience needed to correctly identify vehicle damage and determine the cost of repair. To be honest, even the few adjusters who actually visit our shop these days lack this same knowledge, but at least having them physically in the facility allows us to attempt to address this problem face to face. Conducting business “virtually” doesn’t give us the same chance, and that increases the possibility of major communication breakdowns during the repair process. I know I’m not alone in my frustration over this.

While this is a problem that likely won’t go away anytime soon, I believe there is plenty that shops can do to make themselves stronger – even during this crazy time. One thing you can do right now to make a difference is take a very close look at your finances. If the coronavirus crisis has taught us anything, it is that we all need to have a Burl Richards financial safety net in place. e way we ABAT President handle our books at our businesses should be no different from how we coordinate our money at home. Do you live paycheck to paycheck or do you have enough income saved to weather an unexpected accident or illness that could prevent you or your spouse from working for a few weeks or months? Would you be able to hold on if your customer traffic dries up again in the way we’ve seen lately? e PPP loans are helping many facilities right now, but what would happen to your shop if another massive health concern hits our country? What if future loans of this nature simply aren’t available? ese are serious questions that everyone who runs a body shop needs to consider Continued on page 13

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Executive Director’s Message

WHAT WE CAN LEARN FROM CORONAVIRUS AND GLUED ROOFS

It’s easy to see that the coronavirus has had a major eﬀect on our businesses, but the worst is still yet to come. Many large American companies will file for bankruptcy over the next 12 months. At the time of this writing, it appeared that Hertz could decide to go in that direction. A 34-year-old shop in Dallas closed its doors in April. We haven’t even really seen most of it yet because of the help many have been receiving. Orders that no evictions will be granted, federal aid, leniency, forbearances and a “we are all in this together” attitude have placed rose-colored glasses on many people who can’t see the danger that lies ahead. Are you prepared to handle it? What if the hearsay that this could happen again next year turns out to be true? Are you ready for that?

2020 TEXAS AUTO BODY TRADE SHOW September 18 - 19

Let’s back up to the John Eagle case. Did we all know that we should probably follow OEM procedures on EVERY repair? Yes. Did we know that a shop could probably get sued for not doing so? Yes. Had industry experts been warning us of this? Also, yes. So, did we heed warnings? No. Not until a shop was sued FOR $42 MILLION did we perk up and change our ways. Coronavirus has the potential to be as impactful as the John Eagle case was on our industry. Many shops have ignored the warnings and will lose everything they have worked for – and, in some cases, everything their fathers and grandfathers worked for, too. ABAT has been preaching to shops the importance of “getting paid for what you do” for six years now. It has never been

about shops taking advantage of insurers or consumers by getting rich from charging for car washes; it has been about making Jill Tuggle sound business ABAT Executive Director decisions, knowing your cost of doing business and charging rates that reflect that. It’s more obvious now than ever. Have you been making business decisions that are sound enough to allow you to put money into savings? According to Forbes, “e ideal amount of money you should keep in your savings account is three to six months’

A curren BAT is tly loo k “virtu al” op ing into t ions this ye ar’s sh for ow. Stay t more uned for inform ation!

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Continued on page 13

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Jill Tuggle (ABAT executive director) at (817) 899-0554 or jill@abat.us 8 June 2020 Texas Automotive

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9 June 2020 Texas Automotive

COVER STORY

By Joel Gausten

A NEW WORLD: ABAT and BASF Help Shops Adapt to COVID-19

“We’re in the midst of transformational change.” is is how longtime industry consultant and presenter John Niechwiadowicz (QLC, Inc.) summed up the state of today’s collision repair industry during “Adapting to COVID-19,” a three-day program of one-hour webinars created by BASF and QLC, Inc. exclusively for ABAT members. Held April 28-30, the courses were specifically developed to give Texas industry professionals insight into how to sustain production and profitability during one of the most challenging times in American history. e discussions were applicable to shops of all sizes regardless of whether they are currently operating with a full team, using a skeleton crew, experiencing a downturn in work or waiting to reopen their doors to the general public. While Niechwiadowicz’s discussions kicked oﬀ within days of Texas’ initial reopening eﬀorts, the materials and ideas he presented indicated that the state’s industry is still far from returning to a fully safe and economically sound environment. In addition to sales volume in the US and Canada down around 50 percent from this time last year, shop owners and employees still have to contend with the ongoing potential for COVID-19 exposure – especially when considering that the virus can survive on plastic for over 72 hours, on steel for over 48 hours and up to three hours in the air in closed environments. “is is something that we have to be cautious about. Our team members in particular have some logic behind whether they express some anxiety. Whether they state it or not, there is some rationale behind it. To maximize the safety and confidence of employees (or “stakeholders,” as he called them), Niechwiadowicz suggested (among

other things) reducing the number of meetings to only those critical to operations and sanitizing physical contact points before the use of any shared shop or oﬃce equipment. Webinar attendee and ABAT Vice President Eric McKenzie (Park Place Dealerships) noted that his operation’s Dallas location is checking employees’ temperatures daily as directed by county regulations and Centers for Disease Control and Prevention (CDC) guidelines. Naturally, health and safety risks are heightening for those employees tasked with cleaning and applying disinfectant to the vehicles being repaired. Niechwiadowicz strongly urged attendees to check the Environmental Protection Agency’s approved list of products as opposed to relying on what it says on a cleaning item’s packaging. For example, the packaging for 10 June 2020 Texas Automotive

Clorox disinfecting wipes states that it kills 99.9 percent of viruses, specifically lists the human coronavirus on its label and comes with an EPA registration number. However, he cautioned that this product is not currently on the official EPAapproved list. “I’m not saying it doesn’t work; I’m just saying it’s not on the approved list. For liability issues, use something that you have documented evidence that it actually works.” ABAT Board member Robert McDorman (Auto Claim Specialists) echoed Niechwiadowicz’s thoughts on keeping employees free from harm. “We have to always take care of our staff and make sure they’re properly compensated and their families are taken care of. If we put our employees in a hostile environment – if we inject them into a workplace that’s not socially distance acceptable and someone should get infected – there’s a problem there… If one of our employees is infected and infects a customer without health insurance, there’s absolutely liability there.” “We’ve told staff we’re not out of the woods yet,” added fellow ABAT Board member John Kopriva (Kopriva Body Works; Houston). “From what we can best determine, this is going to go on through the end of the year in various degrees.” e rest of 2020 will also emphasize the need for shops to attract and retain as many customers as possible. In Niechwiadowicz’s mind, a new marketing opportunity exists for shops that step up to the coronavirus challenge, create a safety-focused operation and regularly promote these efforts to the motoring public. “e strong bond in the time of need – when you’re going out of your way to help them – will be remembered.” e way shops communicate with consumers moving forward will be a Continued on page 21

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President’s Message Continued from page 6

right now. Our business models – and our accounting at home – should be set up to allow us to thrive and not just survive. Even during this slow process of reopening America, we need to make sure that we are getting paid properly for every safe and proper repair we perform. If you wait another six months or a year to fully embrace this philosophy, then it might be too late to turn things around.

Of course, this is easier said than done. Before COVID-19 hit, the writing was on the wall that insurers were going to keep pushing back hard against certain sublet changes. It was also becoming clear that certain parts vendors would no longer provide the level of discounts that many shops were accustomed to. e majority of us were already facing obstacles well before this pandemic, and the past few months have only made matters worse. So, what are you doing these days to

Executive Director’s Message Continued from page 8

worth of expenses, in case you suﬀer a financial hardship...” Of course, no one saw this coming. but that is exactly why your business should be financially fit. We are extremely lucky to live in a nation that has the means to be able to loan or grant money to businesses right now. But where would we be without the PPP? Certainly looking at more furloughs and earlier bankruptcies. So, what if this comes back? Science, a Harvard University magazine, has a recent article (that is almost too scientific to read) that suggests that we have a long road to total control over this by building up immunity through our own immune systems or an immunization. ey have forecasted that this may be a seasonal issue and that outbreaks, the need to “flatten the curve,” socially distance and shut ourselves in could happen from

make up the diﬀerence? What are your ideas on how to make things work now and in the future? Please contact me if you have any thoughts on how we can grow financially with so much working against us. I’d love to hear what you have to say. Let’s work together to defeat any hardship – COVID-19 or otherwise – that hits our industry. TXA

burl@burlscollision.com

time to time for the next couple of years. Do you think we will get stimulus checks and forgivable loans each time? Absolutely not. Maybe it won’t come back. Either way, are you willing to risk being unprepared? So, what then? Start from here. Start by knowing how much you need for your business to survive. Your actual cost of doing business. How much you need to charge to be a fiscally fit company. is number is not determined by the insurance company, your neighbor or your local market. We will be hosting seminars on these VERY topics in the coming weeks and months. Glued roofs, Chinese viruses…Don’t let the next major catastrophic event in our industry be the one that puts you out of business. And for Pete’s sake, join ABAT. TXA

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NATIONAL FEATURE Jill Tuggle ABAT

Lucky Papageorg AASP/MA

Charles Bryant AASP/NJ

Jordan Hendler WMABA

Judell Anderson AASP?MN

Larry Terrien WACTAL

Aaron Schulenburg

COVID-19 Questions and Answers: Industry Leaders Respond e COVID-19 pandemic has had an immediate and powerful impact on the national collision repair and mechanical service industries. is month, we connect with ABAT Executive Director Jill Tuggle, AASP/Massachusetts (AASP/MA) Executive Director Evangelos “Lucky” Papageorg, AASP/New Jersey (AASP/NJ) Executive Director Charles Bryant, AASP-Minnesota (AASP-MN) Executive Director Judell Anderson, Washington Metropolitan Auto Body Association (WMABA) Executive Director Jordan Hendler, Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg and Wisconsin Auto Collision Technicians Association Ltd. (WACTAL) President Larry Terrien to gain insight into how their associations and their members are working to address the crisis while serving customers and the industry as a whole. Texas Automotive: What are your immediate thoughts on this pandemic and the eﬀect it has had on your state’s industry and/or your membership at-large? Jill Tuggle: I think we can all agree that the biggest issue we face as an industry is the fear of the unknown. We are navigating uncharted waters. I have seen many shops working on the proactive side. Furloughs, pay cuts and split shifts have been diﬃcult decisions to make, but they just may be what preserves businesses when done proactively, as we’ve seen here. Lucky Papageorg: e events are life- and industry-changing – not

only in the short term, but for the long-term future as well. When we do return to ‘normalcy,’ it will not be business as usual for those shops that make it through the current state of emergency. SOPs, which we have been forced to change, may not look the same in the future. Our members and the industry as a whole have had to make very challenging decisions, and many more will have to be made. Shops need to use this time to their advantage to learn new skills as well as how to work smarter. Charles Bryant: For the most part, the industry is in panic mode because this came on so quickly and no one was prepared for it. Some are in denial that it is as bad as it is being reported; others are angry with those who just don’t seem to get it. Many shops that fought to stay open in the beginning are now basically being forced to close because they have finished the work they had in the shop when things first started and no other – or little – work is coming in or their employees are refusing to come in. Either way, members of the industry, large or small, seem to be living in fear because of the uncertainty of what will come next or when it will be over. Judell Anderson: On a human level, it’s tragic. My heart goes out to those who have lost loved ones to the disease or whose economic wellbeing is at risk due to job loss. e business impact on the industry will certainly not be insignificant, and I’m concerned about the financial strain on members. But like any other challenge, those who have positioned their business

SCRS

14 June 2020 Texas Automotive

strategically for the long term will survive, although probably with a few battle scars. Jordan Hendler: is is so prolific; the effect is not even fully known. Everyone in the country is affected in multiple ways from this pandemic, and our regional industry and membership are no different. Obviously, the lack of people driving directly affects accidents and claims. I think the lack of available information to deal with such a crisis has been exposed for all. We don’t know as an industry how to clean for disease control, and suddenly here we are. Larry Terrien: e collision industry has been listed as an essential business, and for good reason. Grocery and health-care workers, truck drivers, police and other emergency personnel and all of the other critical workers need to get to work, and they need their vehicles. We have seen the majority of our member shops stepping up and often doing more with less. Aaron Schulenburg: Obviously, this is impacting everybody whether they’re in this industry or not. Our businesses are essential, and I think many of them are fortunate in that the way we schedule work often provides for a backlog. When the switch got flipped and there was a stay-at-home order, there was still work in the pipeline for many of these businesses. But I think we’re really coming to a point where a lot of that has started to be worked through. At the time of this conversation, I think we’re just coming up on some of the most challenging days ahead. Repair

By Joel Gausten businesses have stopped seeing the same capacity of tow-ins and have seen a drastic decrease in the amount of new people walking through their doors. For SCRS, our days have been filled with helping small businesses through the relief mechanisms that are available to them in terms of how to support their employees and the businesses they’ve built and how to help the industry figure out what’s new and relevant to using disinfectants in the vehicles and the resources available to them. We’ve all been drinking from a firehose of information, and I think part of our job is to take out relevant pieces and provide them to their businesses so they can consume what they need to and continue to function. TXA: How has your association been dealing with the pandemic since the state of emergency was issued? JT: During the first week, I was in shock and felt helpless – like watching an accident you can’t stop. I had so many questions: How would this aﬀect our upcoming events, our dues or our Texas Auto Body Trade Show? I figured that members wouldn’t be focused on these things in a time like this; they would just be trying to survive. en, I woke up the next morning and thought, ‘THIS is why ABAT exists: To be there in the hard times. ese shops need us to be a resource and a steady light. We have to be there for them any way we can right now.’ So, our focus shifted to any creative ways we can be a source of information and resources for them. Our lobbyist spent hours analyzing the stimulus package and putting it into a readable document that we sent out. We ordered face masks to send to shops. Who knows what the next steps will be, but we are energized, listening and acting. LP: As an association, we have concentrated on providing the most up-to-date information to our members regarding the measures they should be taking to protect themselves, their customers and their employees. We have been providing them with the links to the resources established to provide assistance through this challenging time. We have also been in contact with the Governor, drawing attention to the exploitative actions of insurers and requesting that he intercede on our behalf with the Commissioner of Insurance. We

have provided templates of letters to our members requesting they also contact the Governor and their legislators. CB: AASP/NJ has been assisting members with the many issues that the pandemic has brought about on a daily basis. Unlike many other associations, we have a unique service that few others have. AASP/NJ has a Hot Line that members can call all day, every day for answers to questions related to anything that is going on in the industry. ese include, but are not limited to, insurance claim issues; environmental issues; compliance with laws, rules and regulations or licensing issues; and, in this case, issues related to the COVID-19 pandemic. Since the outbreak, the AASP/NJ Hot Line has been ringing non-stop, and members are so grateful to know that they have a place to turn for answers to their questions in this difficult time. JA: We’ve been busier than ever. Fortunately, the staff was already set up to work remotely, so that transition has been seamless. But we did have to make the difficult decision to cancel our annual Leadership Conference scheduled for April 23. Since the impact of the crisis hit in mid-March, we’ve scoured all of the various legislation and other measures taken by the government, distilled that information to what’s relevant to members and then communicated it through weekly updates. We sponsored a free ‘crisis marketing’ webinar and have scheduled Zoom roundtable sessions for members to share and discuss the impact on employees, shop practices, marketing, finances and the like. ey are really wanting to talk to each other right now and learn from what others are doing. We’re also fielding lots of member calls and connecting them with resources and support where needed. JH: Our priority is to help the industry get information, so working with SCRS has been crucial. One concern addressed early on was how to communicate and perform any disinfecting services. We cautioned members against language using ‘disinfecting or sanitizing’ and they could instead say ‘applying/applied disinfectant,’ because there is no testing possible for confirming. Unfortunately, it is a liability our industry should not take on in this time but a service we want for our own employee protection as 15 June 2020 Texas Automotive

much as the customer. We want our membership to have resources; right now, that is what we can do for them. We check on them and see how they’re doing. If we identify needs we can assist with, then that’s what we address. LT: We have been very busy keeping up with all of the latest news and information and relaying it to our members by emailed newsletters. AS: ere have been a lot of diﬀerent ways of communicating with members. As we were doing regular emails and updates, people were contacting us and saying, ‘I know I saw an email, but I wasn’t sure what it was.’ I think we were all experiencing that; there’s just been so much communication on this. We developed scrs.com/covid19resources as a page that’s focused on workplace preparation and health, financialrelated relief and other resources that may be out there as well – including other associations that have compiled useful information and SCRS Corporate Members that have developed standalone pages devoted to coronavirus information. We’ve been updating the page regularly; it changes on a near-daily basis. Our hope is that it becomes a dedicated place for people to go to find information, whether they’re a member or not. TXA: What are some ways you’ve seen your members stay positive during this current situation? JT: e email chains have slowed, but they have not stopped. Members are calling each other and ABAT to check on one another’s wellbeing. ey really care about their circle. LP: Many shops have adapted to the new way of ‘connecting’ with their customers during intake and upon completion of repairs. Many shops I have spoken to have taken advantage of the slowdown in the volume of work to address issues that were not addressed previously due to lack of time. Some have been reviewing their past repair orders to catch parts issues, such as price increases that may have slipped by. ey are also reviewing procedural items that may have been performed but not reimbursed for by the insurer. e slowdown has given Continued on page 16

NATIONAL FEATURE Continued from page 15

them the opportunity to visit OEM websites and other online resources to gather the documentation necessary to be paid on the previous jobs as well as those in the future. CB: To be honest, I have seen so many ways the members of AASP/NJ have responded positively to COVID-19, and it makes me proud to be a part of the industry. Many of our members have voluntarily donated masks, Tyvek suits, protective eye wear, gloves and basic PPE items to hospitals, police departments and other organizations that are in need of such items. One member of the AASP/NJ Board voluntarily agreed to pick up the items and deliver them to the places that needed them. One member who had been speaking with another member who was really afraid that he would not be financially able to survive comforted him by assuring him that he would lend him as much money as he needed to get through this. Another member informed me that a dealer parts department that was forced to close gave the shop the keys to the facility and said, ‘Just keep track of whatever you need, and we will see you when we return.’ I have heard of many acts of kindness one member of the industry has oﬀered to another, and it warms my heart to hear the stories. Many seem to think of the members of the auto repair business as ‘tough guys,’ but it amazes me to see just how kind they can be in times like this. JA: We had a roundtable discussion with mechanical members on April 8, and I came away with so much pride and inspiration after that session. Many members were using this opportunity to connect even deeper with their communities through outreach and contributions to charitable causes. It was also noted that with new car sales lower and recent job losses, people would be more apt to hold on to older vehicles and invest in repairs to keep them on the road – a positive for future business. Another positive mentioned was that this was an opportunity to build employee loyalty by keeping people on the payroll, demonstrating concern about their wellbeing and showing support in other ways. JH: Our industry is resilient, but I’ve yet to talk to someone who is wholly positive. I think that is due to the uncertainty of this crisis. It’s not war, where we can see the face

of our enemy; it’s a far-off movie concept come to life. So, in our resiliency, we see where we can help. I know of shops donating PPE and other items to the hospitals and medical facilities that need them. I see that they want to work on the vehicles they can, and that gives them pride in being the essential industry they are. LT: Shops are reassuring their staff by having regular status update meetings and being flexible with staff members’ needs. ey are reassuring their customers that they are there for them, and that they will do whatever it takes to help them out. is often includes: • extra hours by appointment; • free pick-up and delivery; • non-contact drop-off and pick-up; • sanitizing every vehicle before beginning work and before delivery; and • dealing with parts shortages. AS: ere have been some bright lights in this situation. We’re seeing a lot of ingenuity and that entrepreneurial spirit come through in these tough times from a lot of our member businesses. If there’s a silver lining, that’s one of them. We’ve watched folks like John Mosley from the Mississippi Collision Repair Association take a portion of the materials he had in his coatings business, and instead of producing the coatings he normally would, he turned them into disinfectants that his business is giving out to their local hospitals. We’ve spoken with collision repair facilities that are transitioning over some of the PPE they’ve used and donating the remaining stock to their local hospitals. We’ve seen that civic duty come out in light of all of this. We serve an essential role not just in the fact that we’re able to stay open, but also in that we also serve an essential role in the community. We’re seeing a lot of small business owners really living up to that. It really shone a light on what a great industry this is. TXA: What are your thoughts on how the industry as a whole is addressing this? JT: Again, these are uncharted waters. Unfortunately, there’s not much new information in circulation, but everyone is trying their best to be a helpful resource. SCRS moved up its Affiliate Association conference call, which offered a great deal of ideas and information shared among association leadership nationally. 16 June 2020 Texas Automotive

LP: e majority of shops have stayed positive. Shops are positioning themselves to come back stronger after the state of emergency is lifted. Due to the paperwork and documentation review required to apply for the different stimulus packages, many have been reevaluating their Labor Rates and procedures in the repair process. Quite a few have been submitting updated information regarding their Labor Rates to National AutoBody Research [NABR], while others are taking NABR’s Labor Rate Survey for the first time. ose who had previously subscribed to NABR’s BillableGenie service have used the time to research the information archived there as well as upload additional documentation of rates and procedures insurers have paid. CB: ere is no doubt that this is a scary time, because no one knows exactly where things will go from day to day. With that considered, the industry is handling this very well, in my opinion. Shop owners are setting up methods of dealing with their customers remotely. I have heard of shops installing glass doors inside the office where the shop owner or worker has a shield between themselves and the customers who come in. I had to laugh when I was told about a shop owner who brought a wooden paddle that is normally used to turn pizzas over in an oven into his office and is now using it to have his customers put their keys on instead of handing the keys directly to him. Members are attending webinars to learn about workplace safety, and we notify our members of webinars that provide information on the different types of loans that the government is making available. As time goes on, members of the industry are figuring out how to deal with whatever issues they face as the result of the COVID-19 situation. JA: I’m impressed with the generosity, resourcefulness, business acumen and commitment that our members have demonstrated. It’s going to be rough for a while, and the industry will emerge changed but stronger than ever. JH: Collision repairers are happiest when they’re working. e fact that our industry is deemed essential gives us purpose. We can keep working on the vehicles we do have and give the best service possible.

LT: We are seeing some shops shutting down completely, but the vast majority are continuing to serve their customers. e ones that are running are experiencing a drastic change in business practices. ese often include dealing with parts shortages and having to pick up parts that are no longer being delivered. is often involves having an employee drive long distances to get parts that cannot be obtained locally. Drop-off and pick-up of vehicles is now done differently, and many shops are modifying estimating procedures and office hours, among other things. AS: I’m really proud of the way our industry has responded to and handled all of this. I believe that at the end of this, the independent market is really going to shine in a number of different ways. TXA: What are the best ways members can use your association to keep them moving forward until this is finally over? JT: Take the time to read emails and reach out. Help us help you. Most of our day-today operations are put on hold right now, and we are waiting to be a resource to you.

Associations have the heart of any charitable cause – we do it because we genuinely care for you and our industry. If we can do one thing to help you or your shop during this time, then we have done our job. LP: Members should continue seeking information from the association and let us know what else we can do to better assist them as we go forward. I suggest they become familiar with the information on our website available through the Members Only portal. ere is a wealth of information that can be used to assist in the repair and negotiating processes in our state. CB: From the time this first started, AASP/NJ has been providing notices to our members on how to deal with the issues as they arise or change from day to day, including webinars on how to deal with the issues and contacts for organizations that can assist with any issue that results from the pandemic. We continue to research and provide links to important information. We have provided members with dealer license information that allows the dealer to sell, title and register vehicles online. AASP/NJ is constantly watching what is going on and

17 June 2020 Texas Automotive

seeking answers to problems that are being reported to the AASP/NJ Hot Line. e association is here and ready to assist any member with any issues that arise. If we don’t have the answers, we will go and get them, report back to those members and share this information with others. JA: e benefits of association membership haven’t changed, and they have become even more important during this crisis. We can help them move forward by providing access to ‘need-to-know’ information and education, connecting them with their peers to share experiences and lessons learned and reducing their costs with our member benefit programs. We are here to help and will continue to be their champion and their ally. JH: We can connect needs as best we can, and that can be educational or even a product or service. When so much ‘information’ is being floated out everywhere, it’s our job to find and source what actually helps our members to survive this crisis. Continued on page 19

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NATIONAL FEATURE Continued from page 17

LT: Members rely on us to keep them informed of the very latest information. We are also a platform where they can network with other shops for ideas of what works and what doesn’t and just bounce ideas oﬀ of each other. AS: We’re continually releasing educational materials, as we always do, through our YouTube channel and website. ere are a lot of people who are focused right now on developing content through this period, and there are a lot of opportunities for members to get in training and learning and spend time sharpening their minds and looking at their businesses. And if they find material they like, I’d ask that they share it. TXA: What is the message you have for members so they remain hopeful for the future? JT: is industry has many, many great minds at work. Because of the groundwork we have laid as an association, our members

have the network of trainers, researchers and other successful shop operators at their fingertips. at, coupled with what they have been learning and implementing at their businesses over the past few years, is the biggest advantage they could have given themselves to face something as unexpected as this. ABAT members have given themselves many advantages, and faith in God will carry us through. LP: We are an essential, a resilient and – most importantly – a proud industry. We will survive the current state of aﬀairs we find ourselves in, and we will come out on the other side that much stronger. We need to be vigilant to ensure that our customers and our businesses are not exploited and put in harm’s way by insurers feigning concern for their policyholders. We must rely on one another and AASP/MA for the strength needed to survive and prosper in the aftermath of COVID-19.

constantly spread the message that unity is the answer. at message could never be more important than right now. is is a time for each member to look out for one another, put their differences aside and help each other. Over the years, the industry has dealt with whatever difficulties it has had, and this is no different. e difference now is that the members of AASP/NJ have an association that stands ready to assist in whatever manner necessary to get through this and anything else that comes our way. I would urge the members of AASP/NJ to utilize the benefits that we provide, like the Hot Line, Labor Pool and Equipment Exchange. Also, they should utilize our Benefit Provider Programs that provide discounts on workers’ compensation and garage insurance, credit card processing and so much more. Our final message to all AASP/NJ members is to stay strong and safe and know that you are not alone. e future will shine bright again soon.

CB: AASP/NJ wants every member to know that they are not alone. e association has

JA: ere’s a reason that auto and collision repair were deemed ‘essential’ businesses, and Continued on page 21

19 June 2020 Texas Automotive

Ask the Expert

“How Can You Help Our Clients When Insurers Refuse to Return Vehicles Back to Pre-Loss Condition?

Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in over 22 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35-plus years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-of-the-art, comprehensive, accurate, unbiased and up-todate data and information that all parties can rely upon as both factual and objective. Robert can be reached at (800) 736-6816, (817) 756-5482 or AskTheExpert@autoclaimspecialists.com.

Dear Mr. McDorman: Now more than ever, our clients are being faced with their insurance carriers not authorizing safe and proper repairs. Each time this happens, our clients are left with out-of-pocket expenses on top of their deductibles. Over the years, we have referred many of our clients to Auto Claim Specialists when these vehicle owners have had either a total loss or an inherent diminished value claim. In every instance, these clients have been pleased with the outcome of their claim. Can you also help our clients with the related issue of not being made whole for the cost of returning their vehicles back to their pre-loss OEM condition? If so, can you share an example? ank you for your question. We appreciate the referrals you have sent us over the years. Your question is a particularly good one and points out a serious problem in Texas. We deal with this issue daily in our oﬃce from clients all across the United States. However, in the last 60 days, we have noticed carriers in Texas have begun taking an exceptionally hardline position on losses pertaining to collision facility sublet markups, required parts replacement, OEM-required operations, labor cost, refinishing time, refinishing materials and towing and storage costs. In almost every one of these instances, we find that the loss/liability has been under-indemnified by the carrier. However, almost every auto policy in Texas (with an exception being the one from State Farm) allows the insured to seek relief through the appraisal process when under-indemnified for any covered loss, including repair losses. e spirit of the Appraisal Clause is to resolve loss disputes fairly in a timely and costeﬀective manner. e invoking of the Appraisal Clause removes inexperienced and biased carrier appraisers and claims handlers from the process, undermining their management’s many tricks to 20 June 2020 Texas Automotive

undervalue the loss settlement and underindemnify the insured. rough the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased, experienced and independent third-party appraisers as opposed to costly and time-consuming methods, such as mediation, arbitration and litigation. As mentioned, when the carrier issues an improper or unsafe repair plan, insureds (with State Farm policyholders being an unfortunate exception) almost always have a policy option to invoke their right to appraisal. is past week, a potential client from Paris, TX called our oﬃce seeking advice on how to handle a loss/liability their carrier left them with on a repair. After our initial interview with the insured, we requested a copy of the original carrier estimate and all subsequent supplements of record, the collision facility’s final invoice and all available photos. We then forwarded these supporting documents to our subsidiary, Vehicle Value Experts, and requested that it issue a complete repair plan with all OEM operations needed to return the vehicle to its pre-loss condition. After a thorough review of the carrier’s estimate and all other supporting documents, Vehicle Value Experts issued a repair plan/loss statement of $8,108.96 to safely return the vehicle to its preloss condition. In contrast, the carrier’s final repair plan/loss statement amounted to only $4,549.12. After reviewing the loss statement from Vehicle Value Experts, we recommended the insured retain Auto Claim Specialists as their Public Insurance Adjuster to invoke their policy right of appraisal and retain Vehicle Value Experts as their independent third-party appraiser. Vehicle Value Experts and the carrier’s independent third-party appraiser ultimately agreed on a loss/liability of $7,705. rough the appraisal process, the insured was able to reduce his out- of-pocket expenses by $3,155.88! We routinely see this type of underindemnification of claims. e more alarming

By Robert L. McDorman situation is the perilous and potentially lifethreatening safety issue when insureds fail to understand and utilize their policy rights and, lacking the funds to cover their carrier’s unfunded liability, accept an unsafe repair plan. e under-indemnification in total loss and repair procedure claims in Texas is rampant. We have been increasing the total loss settlement for 80 percent of the contacts we retain as clients by an average of 28 percent. We have also reduced clients’ out-of-pocket expenses by an average of 35 percent on repair procedure disputes, such

as the example provided in this article. ese under-indemnification percentages are staggering and harmful to Texas citizens. In today’s world regarding motor vehicle insurance policies, frequent changes in claim management and claim handling policies and non-standardized GAP Addendums, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement reviewed by an expert before accepting it. ere is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and give its

NATIONAL FEATURE

professional opinion as to the fairness of the oﬀer. Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies in our library. Always keep in mind a safe repair is a quality repair, and quality equates to value. I thank you for your question and look forward to any follow-up questions that may arise. Sincerely, Robert L. McDorman TXA

COVER STORY

Continued from page 19

Continued from page 10

that’s because you are! e fundamental need for consumers to have their vehicles maintained and repaired has not changed and will continue after this crisis has passed – perhaps at even greater levels than ever before. is industry has always been resilient, whether adapting to changing vehicle technologies or a shifting regulatory environment. If you stay informed, take advantage of the resources available to you and adjust accordingly, you will weather the storm and come out wiser and stronger on the other side. JH: is industry goes to work as soon as the doors open, and this crisis is no diﬀerent. When cars go back on the road, work will be coming back in the doors. We cannot focus on the things we cannot help. Rather, we need to do the best with what we have now and look to the future. Does the shop need to be cleaned out, reorganized and freshened up? Would you change anything about your layout? is is the time, when it’s slow, that you can make all these positive changes to come back better and stronger than ever! LT: We tell shops to be creative and flexible and keep an open mind. What worked best for them just a couple of weeks ago might not work at all now. For example, we are seeing new vendor opportunities opening up. We are seeing stronger bonds with local small businesses that are also getting creative in their marketing eﬀorts. We are also seeing closer

relationships with our insurance partners that hopefully will continue long after this is over. AS: We are an industry made up of people who fix tragically broke things, and we can do the same here. is is not the first time we have weathered really challenging economic adjustments. September 11 and the recession in 2008 are examples of instances where the challenge felt insurmountable, but we – as an industry, as a country and as individuals – found our way through it. is will be no diﬀerent. It’s going to be tough, but I think many businesses will learn how they can be better prepared in the future while hoping they never have to be prepared for something like this again. e reality is that we can come together and potentially be a stronger industry as a result of this. For so long as an industry, one of our challenges has been attracting new individuals to fill the gaping holes in technical roles that we have. e reality is that we may have more opportunity to fill those empty spaces than we did previously. We may appeal to individuals who wouldn’t have considered us before but who now might say, ‘Wow, this is an industry that continues going to work, continues supporting its employees and continues to provide a paycheck when so many people are stuck at home.’ ere are things in this situation that make our industry shine. TXA

21 June 2020 Texas Automotive

deciding factor in the work these businesses will be able to generate. In the age of coronavirus, thriving in the auto body world comes down to shops’ ability to enhance their closing ratio. “[Customers] can be pre-conditioned, if we set the stage properly, to say, ‘I already know that I want you to repair the vehicle’ or, ‘I’m 99 percent of the way there.’ “e true goal that I see is certainly to do the right thing just because you care,” he added. “I know you want to take care of your stakeholders and customers – no question – but there’s also an opportunity to utilize this to position ourselves for success by enhancing our culture and driving work to the door.” Niechwiadowicz recommended the book Raving Fans: A Revolutionary Approach to Customer Service by Ken Blanchard and Sheldon Bowles, which explores the concept of how businesses can “deliver [their] the vision plus one percent” and overachieve in providing services. “Try to do a little bit more than what that perfect experience is.” ese days, the “perfect experience” for customers could mean keeping interactions with a shop as touchless as possible. Webinar attendees shared experiences with everything from receiving payments through PayPal to the rise of photo estimating. ABAT has aided members in their health-minded activities by making association-branded masks available. McKenzie added that wearing masks was still a critical part of his daily operations at the time of the BASF presentations. “If we have clients who are sensitive to Continued on page 22

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COVER STORY Continued from page 21

that and we’re not [wearing them], they may choose not to do business with us. We can’t afford to lose anybody right now.” With so much focus being placed on extensive cleaning and social distancing, Niechwiadowicz stressed that shops shouldn’t forget to still exercise the basics of interpersonal communication along the way. “You’re going to get a bunch of phone calls; have that consistent message [and] safe zone. Make sure you take the time to train the team…Sometimes, the way we answer the phone isn’t the greatest. Make sure we have a high degree of professionalism in something as basic as answering the phone.” With coronavirus still front and center on most customers’ minds, shops need to continue to keep their pandemic response efforts in the public eye. Niechwiadowicz shared that he has seen some shops waive deductibles and offer financing options, while many are utilizing email to inform past customers of their current activities. If a facility is operating at reduced hours or is temporarily closed, it should make this known to consumers through social media and other methods. He added that community pages are good places to reach out to drivers, while local media could be utilized to turn a shop’s COVID-19 response measures into a human interest piece that will keep that business in the spotlight. For information on upcoming ABAT events, please visit abat.us or contact Executive Director Jill Tuggle at (817) 899-0554. TXA

22 June 2020 Texas Automotive

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