New England Automotive Report August 2015

Page 1

N

E

W

E

N

G

L

A

N

D

AUT M TIVE Serving The new englAnd ColliSion And MeChAniCAl repAir indUSTry MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

August 2015 U.S.A. $5.95

www.grecopublishing.com


2 August 2015

New England Automotive Report




August 2015 • Volume 13, No. 8

CONTENTS

DEPARTMENTS PRESIDENT’S MESSAGE 8 | AASP/MA on the Front Lines with Your Legislators by Molly Brodeur

SPONSOR SPOTLIGHT 14 | Size Matters: NFP Can Accommodate Your Insurance Needs by Jacquelyn Bauman

INSIDE AASP/MA 16 | Meet the Board: Peter Langone by Jacquelyn Bauman

LOCAL NEWS by Joel Gausten 24 | Towing and Collision Veteran Adds New Voice to ADALB 26 | AASP/MA Seminar Offers Solutions to Profit Leaks 30 | Short-Pay Issues Explored at Waltham Event INDUSTRY UPDATE 34 | CT Supreme Court Reverses $34.7M Hartford Verdict VOCATIONAL SCHOOL SPOTLIGHT 36 | Putnam Academy Hosts Collision Repair Advisory BBQ by Joel Gausten

LEGAL PERSPECTIVE 40 | ACV, Stated Value & Agreed Value by Jim Castleman

EQUIPMENT AND TOOLING 50 | Necessary Tools, Necessary Spending by Jacquelyn Bauman

COVER STORY 44 | 2015 AASP/MA GOLF OUTING HIGHLIGHTS Coverage by Joel Gausten

ALSO THIS ISSUE 7 | CASINO NIGHT SAVE THE DATE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 11 | IN MEMORIAM: PEGGY CAHILL 15 | AASP/MA SUSTAINING SPONSORS

18 | AASP/MA MIDSTATE CHAPTER BBQ NOTICE 21 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 53 | AASP/MA MEMBERSHIP APPLICATION 54 | INDEX OF ADVERTISERS New England Automotive Report

August 2015

5


6 August 2015

New England Automotive Report


N

E

W

E

N

G

L

A

N

D

AUT M TIVE STAFF

August 2015

August 25, 2015 AASP/MA Board of Directors Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA

PUBLISHER

ART DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

DIRECTOR OF SALES

MANAGING EDITOR

Alicia Figurelli (alicia@grecopublishing.com)

Jacquelyn Bauman (jacquelyn@grecopublishing.com)

EDITOR

PRODUCTION

Joel Gausten (tgpjoel@verizon.net)

Donna Greco (donna@grecopublishing.com)

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

September 2015

September 8, 2015 AASP/MA Statewide Meeting Doubletree Hotel 5400 Computer Dr., Westborough, MA

September 11, 2015 AASP/MA MidState Chapter BBQ Visit www.aaspma.org for event details

www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2015 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com/IStock Photo.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE COMMITTEE PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard

AASP/MA CHAPTER DIRECTORS NORTHEAST CHAPTER DIRECTORS Alex Falzone Kevin Kyes SOUTHEAST CHAPTER DIRECTORS Michael Penacho Darlene Andrade MIDSTATE CHAPTER DIRECTORS Tom Ricci Ray Belsito WESTERN CHAPTER DIRECTOR Peter Langone

AASP/MA EXECUTIVE DIRECTOR

FOR A FULL LISTING OF UPCOMING AASP/MA EVENTS AND TRAINING OPPORTUNITIES, PLEASE VISIT WWW.AASPMA.ORG

Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

WWW.AASPMA.ORG New England Automotive Report

August 2015

7


PRESIDENT’S MESSAGE

AASp/MA on The FronT lineS wiTh yoUr legiSlATorS I’ve used this space many times over the years to urge our members to be an active part of the legislative process and join the fights that AASP/MA is spearheading in order to make our industry a better place. This month, I’d like to share with you a very encouraging story following a great experience we had in June. Earlier this year, members of AASP/MA visited Senator Eldridge’s office to reintroduce ourselves, our initiatives and the challenges faced by our membership. While the Senator was unable to attend that day, we had a great discussion with his chief of staff, Michael Carr, and legislative aide, Minney. At the conclusion of our meeting, I suggested an in-person follow up meeting with the Senator at Al Brodeur’s Auto Body. Immediately following my return to the office, I found a message from Senator Eldridge’s staff with a date and time that worked for him to come by, and on June 12, we welcomed the Senator for what I

8 August 2015

believe was an informative tour and conversation on our issues. We started in our original shop (Al Brodeur’s has two locations) and then made our way over to our newer space, informing Senator Eldridge that the decision to purchase this property came about as a way to diversify our business, allowing us to invest in other aspects of the industry versus only collision repair. As we all know in Massachusetts, our suppressed Labor Rate has stifled our ability to properly equip our shops, attract, train and retain technicians and quite simply, keep our doors open with the lowest reimbursement rate in the country. It’s a bleak future, unless we do something about it. It was a wonderful experience having Senator Eldridge out to our shop. We have developed a great rapport with him and his staff, and he is genuinely interested in how the issues discussed are impacting our industry. He has signed on as a sponsor of our Labor Rate bill in all

New England Automotive Report

its incarnations, and continues to support our efforts. The fact that collision repair is no longer a turnkey industry, with aged technicians nearing retirement and very few young tradesman ready in the wings, really seemed to resonate with him. I believe he understands our passion to turn this industry around and on behalf of AASP/MA, I thank him again for making the time to visit us and listen to our concerns. I’d like all our members to strongly consider reaching out to your local legislators and invite them to your facility. Do not be afraid to extend the olive branch! In all my years of association work, I have yet to meet a legislator who is not committed to helping small businesses. They want to understand our issues, and they absolutely want to get to know their constituents. Get them out to your shop so that they can see the challenges you’ve faced – let them see the outdated equipment you’re stuck with or the renovations put on hold because of our Labor Rate.


Explain to them that we are heading down a dangerous path unless things change soon. We at AASP/MA would be happy to assist you in contacting these legislators, and we would be happy to join you in your meetings if you’d like. Please contact our office if you’d like us to work with you in educating your local lawmakers. Change IS possible! MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA President Molly Brodeur is the Chief Operating Officer of Al Brodeur’s Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com

BREAKING NEWS As this issue went to press, New England Automotive Report received news that ADALB Advisory Ruling 2014-01 has been rescinded on a 3-2 vote. This ruling reverses the May 2014 decision “that an appraisal conducted by a licensed appraiser via review of quality video or digital images with documentation meets the requirements of 212 CMR 2.04(1)(d).

New England Automotive Report

August 2015

9


A MESSAGE FROM THE EXECUTIVE DIRECTOR

AASp/MA workS To Solve indUSTry-wide probleMS Dear Members, If you have been reading previous issues of New England Automotive Report, you know the association has been highlighting our regulatory and legislative efforts. Our filed legislative matters were created by our Legislative Committee and staff in order to combat issues shops face on a daily basis. Action on these legislative pieces will undoubtedly solve industry-wide problems. Additionally, our work with the Commonwealth Automobile Reinsurers on language changes to their Performance Standards continue to fight the insurance company practices of suppressing the Labor Rate. The association continues to work with the Auto Damage Appraiser Licensing Board, the Attorney General and the Division of Insurance to seek remedies for Massachusetts’ shops and consumers. In addition to our legislative efforts to solve industryrelated problems, the association – under the direction of President Molly Brodeur – has created an Insurer Relations Committee. The Committee, which is chaired by Adam Ioakim (co-owner of Hogan and Van Auto Body and vice president of AASP/MA) and Tom Ricci (owner of Body &

10 August 2015

New England Automotive Report

Paint Center of Hudson, MA) is charged with discovering challenges the industry is facing with insurance carriers and seeking answers on their behalf. The Committee recently sent a four-question survey to our members to identify common insurer trends. The intent of the Committee is to seek answers and guidance from insurers on their practices and work cooperatively to find solutions. AASP/MA has also created a Vocational School Assessment Committee. Its purpose is to visit the Commonwealth’s vocational schools to work with the teachers and students to provide professional resources. AASP/MA has been successful in educating the schools about our grant program through the Collision Repair Education Foundation (CREF), creating resources for teachers on I-CAR curriculum training and fostering the student interest in becoming repair professionals. As you are all aware, the average age of a technician in this country continues to rise. We need to focus on the future of this industry by continuing to dispel misconceptions about the profession. The association has also added several new member benefit programs. At the time of this writing (and in an effort to combat the recent rise in short-pays), the association


is currently working to create easy-to-fill-out forms that can be filed and taken to court on your behalf to seek reparations. The association is also creating programs for financial and business consulting. AASP/MA works to solve industry-wide problems. I strongly encourage our members to participate in these efforts and help us build the success of the auto repair industry. If you are not a current member of the association, please consider joining today. Your support and participation is necessary for change and continued success. Sincerely,

Jillian Zywien, Executive Director

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

in MeMoriAM: peggy CAhill As New England Automotive Report went to press, the AASP/MA community said goodbye to Peggy Cahill of BC Auto Repair in Randolph, MA, who passed away on July 7 at 56. The wife of Past AASP/MA President Bill Cahill, Peggy was a popular figure in the Massachusetts automotive service arena, known for her positive spirit and longstanding efforts on behalf on the industry. An in-depth tribute to Peggy will be featured in our next issue.

AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

August 2015

11


12 August 2015

New England Automotive Report


New England Automotive Report

August 2015

13


SPONSOR SPOTLIGHT

Size MATTerS:

nFp CAn ACCoMModATe yoUr inSUrAnCe needS Almost one year ago to the day, local company ASG Insurance became one with NFP Property and Casualty. NFP was established with the intention to provide personal, professional and comprehensive service to companies both public and private. This national, billion-dollar company sought out to acquire ASG because they were in need of a Boston-located property and casualty insurance broker. Then president of the local insurance firm, Glenn Chavious knew that merging with NFP would allow the company to provide its clients with a broader scope of services. Now managing director, Chavious runs the local organization, grows it organically and works to buy acquisitions that will benefit clients. Ever since the company was under its previous acronym, they have been active sponsors of AASP/MA and their events. By donating prizes, sponsoring Golf Outings, Casino Nights, gifts and silent auctions, they have developed a unique relationship with the local automotive service industry. Through their relationship with the AASP/MA Executive Team at Lynch Associates, NFP has gained a unique perspective of the automotive service field that not many

other property and casualty insurance agencies have been privy to. “Local members help us work on local programs to find the right property and casualty carriers to partner with,” explains Chavious. “This allows us to add value to what we offer our clients, such as pricing loss ratios, claims ratios, etc. Because of this, we can provide a platform for auto service providers that is more compelling than smaller agencies.” The thing that Chavious believes sets NFP apart from other insurance brokers in the area is the company’s reach. “We provide our clients the ability to get everything they need in one spot,” he explains. “Our agents have the ability to do everything under one roof. This includes insurance claims management and consulting, 401K and retirement services, employee benefits and healthcare and private client group services such as estate planning and personalized individual coverage. Plus, we have direct carrier relationships that small mom-and-pop insurance brokers don’t have access to, which means we can provide more services, better pricing and more coverage to our clients in the auto service group.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

For more information on nFp property and Casualty, please visit nfppc.com or contact glenn Chavious directly at glenn.chavious@nfp.com or (617) 398-5586.

AASP/MA WORKS TO MAKE YOUR DAILY BUSINESS IN THE AUTOMOTIVE SERVICE INDUSTRY AS EASY AS POSSIBLE. Through relationships with a variety of companies, the association provides benefit services to members such as uniform services, SEO and website management, legal consulting services and so much more. Now we want to hear from YOU. Is there a service or company you think would make a great addition to AASP/MA’s list of benefit providers? Let us know! Contact Executive Director Jillian Zywien at (617) 574-0741 or email her at jzywien@aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY


AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

AASP/MA NEWSLETTER SPONSOR

WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor! New England Automotive Report

August 2015 15


INSIDE

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

by Jacquelyn Bauman

MEET THE BOARD:

In the collision repair industry, a sense of humor is often an underrated talent. For Peter Langone, AASP/MA Board member and co-owner of Langonet Auto Body and Frame in Agawam, this gift is not in short supply. At the age of 19, Langone went to work for a family friend. It was during his time at this position that he met John Gonet, who is still his business partner to this day. After about a year and a half, Langone and Gonet went to work out of a small two-car garage at Gonet’s house while they looked for a more suitable building for their budding business. In 1982, within about five months, they found a 5,000-square-foot facility – just enough for four bays and a small office. Although they are at the same location to this day, they have grown their business to a 13,000-square-foot building with 15 employees. “If you give me about 15 minutes, it might go down to 14 employees,” Langone jokes, demonstrating his lighter side. “In all seriousness, we have a great time here. My partner and I work to give everyone good direction and lay out our expectations of what we need them to do. They know what we expect and it works out well that way. Most of our employees have been here for 15-20 years. Some of them have only ever had a job here. They understand what we do. “In the future, getting new technicians will be the hardest part of this industry,” he continues. “We’re being pulled in two different directions and, if no changes are made, I see a serious shortage of techs. In 10 years, I might have to put the tools back in my own hands.” Part of finding and maintaining the right technicians for one’s shop comes from staying informed about the automotive repair field. To Langone, this is the most important aspect of the association and what it provides to its members. “We’ve been part of the association since the ’80s, when it was still the Massachusetts Auto Body Association, and I’ve been a Board member since it was still MABA as well,” he explains. “The association provides information, which is crucial in staying ahead of the game in this industry. I became a member for that very reason – because I get the information firsthand and I use it to help stay current on regulations and who is doing what. Some people are cynical, but believe it or not, it helps.” Like any other shop owner, finding time away from the business can be difficult for Langone. “What do I like to so when I’m not in the shop? Is sleep an activity?” Langone kids again. “I like to ride my motorcycles – I have two quads for off-roading and a BMW for street riding. I enjoy doing things around the house, like 16 August 2015

New England Automotive Report

PETER LANGONE

remodeling and even yard work.” One way that Langone has remained successful through all of the years is the simple aspect of keeping his work life and home life separate. “I’m not sure if it is a talent or if I have just been blessed with a short memory, but when the key is in the door and I turn the lock, the day is over,” he says. “I don’t take work home with me. When I come back the next day and turn the key again, the business is back again. Don’t take business personally. It’s business.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY


New England Automotive Report

August 2015

17


18 August 2015

New England Automotive Report


New England Automotive Report

August 2015

19



in Massachusetts August 5, 2015 Best Practices For High-Strength Steel Repairs

August 15, 2015 Advanced Steering and Suspension Systems Damage Analysis

August 6, 2015 Color Theory, Mixing Toners and Tinting

August 19, 2015 2015 Ford F-150 Structural Repair Training Course

All classes will be held at Fuller Auto Body (Auburn, MA) Visit www.i-car.com for more information. For more information or to request a specific course, please contact the following I-CAR Committee Chairs: Chairman - Josh Fuller: jfuller@fullerautomotive.com Vice Chair of Training - Justin Forkuo: justin@290autobody.com Boston Committee Chair - Molly Brodeur: molly@albrodeur.com North Shore Committee Chair - Gary Brown: gary.b@kwikauto.com South Shore Committee Chair - Carl Garcia: carlscollision@aol.com Western MA Committee Chair Andrew Potter: apotter@northamherstmotors.com

TRAINING OPPORTUNITIES Course Spotlight: Advanced Steering & Suspension Systems Damage Analysis Advanced steering and suspension systems are increasingly popular in today’s modern vehicles. If not repaired properly, other vehicle systems can be compromised, resulting in more damage. Every individual involved in the repair process is a stakeholder. Knowing what to look for pre-repair, how to execute the repair and what to check post-repair impacts everyone involved. This interactive course provides important information on the considerations for inspecting steering and suspension systems and provides knowledge that can lead to increased efficiency gains and a positive customer experience.

Course Spotlight: Best Practices for High-Strength Steel Repairs Many of today’s vehicles are built with HighStrength Steel (HSS) and Ultra High-Strength Steel (UHSS) to improve fuel efficiency. An improper repair to these materials can have serious consequences, making the need for consistent methodologies essential. Understanding how to properly work with these materials is critical to ensuring that the vehicle’s integrity remains unchanged. After completing this course, students will be able to identify the proper information needed to develop a repair plan, identify how to test for HSS and UHSS (and common locations where UHSS can be found), recognize best practices for straightening HSS and UHSS vehicles and more. Course Spotlight: Color Theory, Mixing Toners & Tinting Understanding the nature of color theory and the considerations that affect color is essential in achieving a blendable match. This course will provide knowledge on how to evaluate color, as well as discuss if and when tinting should be done. The content found in this course can improve application and problem-solving skills, which can also increase productivity through improved customer satisfaction, better cycle time and reduced rework.

Course Spotlight: 2015 Ford F-150 Structural Repair Training Course Collision repair training experts at I-CAR worked alongside Ford Motor Company engineers during the 2015 Ford F-150 design and development process, leveraging I-CAR’s expertise to create training for collision repairers who will work on the new Ford truck. Two years of development culminates in a 2015 Ford F-150 Structural Repair course that covers all topics of aluminum and dives into vehicle-specific information. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Prompt &  Dependable Delivery

Experienced and Professional Parts Team

Ask about our Competitive Prices

Fax Line: 508.699.4761 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00

www.firsthyundai.com

www.firstfordma.com

Parts Line:

508.699.4700 270 East Washington St. North Attleboro, MA 02760

Parts Line:

774.888.6666

292 William S. Canning Blvd. Fall River, MA 02721

Parts Line:

508.316.8410 280 East Washington St. North Attleboro, MA 02760

www.firstchryslerma.com

New England Automotive Report

August 2015

21


22 August 2015

New England Automotive Report


New England Automotive Report

August 2015

23


LOCAL NEWS

Towing And ColliSion veTerAn AddS new voiCe To AdAlb At the June 2 meeting of the Auto Damage Appraiser Licensing Board (ADALB), Massachusetts collision repair veteran and AASP/MA member Bill Johnson (Pleasant Street Auto Body, South Hadley) appeared as one of three new members of the Board appointed by Governor Charlie Baker. Johnson, who officially took his place on the Board alongside fellow appointees Rick Starbard (Rick’s Auto Collision, Revere) and Lyle Pare (Plymouth Rock Assurance Corporation), replaces outgoing ADALB member TJ McClements. An avid car enthusiast and repairer for more than 40 years, Johnson always knew his life would be in the industry. In fact, he actually opened up his first garage as a 10th grader in 1973! In 1981, he went full time with the opening of Pleasant Street Auto Body and Repair in South Hadley. The 34 years that followed saw Johnson’s operation grow by leaps and bounds. Today, his ever-expanding enterprise (featuring the now-35,000-square-foot South Hadley shop and additional tow/heavy truck-related locations in Holyoke, Belchertown and Westfield) includes a successful towing company (Hampshire Towing) and a heating oil business (Amber Energy). In 1989, Johnson had five employees; today, he has 46. Combined, these businesses gross more than $5 million a year in sales. Johnson’s wife, Tracey and sons Robert (who heads up the towing division) and David (accounts payable/ bookkeeping) join the industry veteran in his day-to-day operations. Throughout his auto body career, Johnson has maintained a strong sense of independence that only strengthened when the referral system hit the industry in the late ’80s. As a repairer who has never signed a contract of 24 August 2015

this nature with any insurer, he is hopeful that his business philosophy will have a positive impact on his work with the ADALB. “I was always a little befuddled how shops that were on referral lists could represent the industry on the Auto Damage Appraiser Licensing Board, because they’re beholden to somebody,” he offers. “My book of business is mine; I don’t have to worry about an insurance agent, company or appraiser referring business to me. I’m working with third- and fourth-generation customers. Whatever I have is mine. “I don’t want to demonize businesspeople who make a decision that, for whatever reason, they feel they need to get work referred to them,” he adds. “But just because XYZ Auto Body signs a contract with ABC Insurance, how does that bind me to that contract?” Along with his collision repair business, Johnson has built Hampshire Towing into one of the most recognized institutions in the area, currently boasting 30 trucks on the road. “I always had a tow truck that was ancillary to my body shop,” explains the owner, who has served as the president of the Statewide Towing Association since 2002. “When I made the decision not to be a referral shop for anybody, I really started looking at the towing industry.” In addition to his many years in the automotive industry, Johnson has a long history in public service. A former selectman for the Town of Granby for 15 years, he accepted an appointment by former Governor Swift to serve as the public member of the Board of Registration of Real Estate Appraisers from 2003 to 2008. He has also served as an alternate member of

New England Automotive Report

Bill Johnson the Pioneer Valley Planning Commission and has been a School Committee member for Pathfinder Regional Technical High school since 2009. Johnson is looking forward to serving the public in his new role with the ADALB. “My biggest hope is that we can effect change as a Board and have all the players follow the CMR as it relates to negotiations and fair play,” he says. “I’m not the type of person to make false promises. All I can say to the industry is that I’m going to try my hardest to make necessary changes and make sure the rules are being followed.” Above all, Johnson insists that his work on the Board will be based on honest, straightforward dealings. “Anybody who knows me knows that I’m tenacious when it comes to issues,” he says. “I’d rather go up to the bat swinging than not go up to the bat at all. I will not be a silent person on the Board.” MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY


New England Automotive Report

August 2015

25


LOCAL NEWS

AASp/MA SeMinAr oFFerS SolUTionS

To proFiT leAkS

Are you currently experiencing a decrease in funds in your bank account despite the fact that you’re seeing more sales through your door? If you’re wondering why your business isn’t making as much money as it should, there is a very good chance that you have five common “profit leaks” that you need to fill right away before they put the future of your shop in jeopardy. On June 16, AASP/MA welcomed industry consultant Anne Dickinson of East Beckwith Associates for “Plug Your Leaks and Grow Your Business: The 5 Deadliest Profit Leaks and How to Stop Them,” an intriguing seminar held at the Roger L. Putnam Vocational-Technical Academy in Springfield. As Dickinson explained, the first major profit leak comes from a business’ inability to keep accurate and current books. Inaccurate information often leads to ineffective decision making and an increased risk of failure. (In fact, Dickinson noted that 80 percent of small businesses go under within the first five years.) “If you don’t have good information, you can’t make good decisions,” she said. As a solution to this potential profit leak, Dickinson recommended hiring a bookkeeper – and not just one who gets a box of papers from the shop once a year. In order to be successful in closing this leak, a business must use a bookkeeper often and make sure their paperwork is always up to date. The second profit leak stems from running the company on the online bank balance alone. This often leads to bounced checks, as your online balance might give a business a false sense of security by showing a total that doesn’t reflect checks that have not yet cleared. Dickinson shared the horror story of one client in particular who ended up with more than $1,000 in bounced check fees in only a month 26 August 2015

Industry consultant Anne Dickinson

by relying strictly on what his online balance said. If a shop owner is unaware of his or her business cost structure in detail, he or she is heading for another serious profit leak. Knowing the cost of every job that comes through the door helps a shop set prices in an effective and profitable manner. But if a shop is charging $100 for a service that they think might cost them $80ish, they might have a major problem around the corner. As Dickinson said, “You could be losing money on every sale and not know it.” Seeing an increase in sales but a decrease in cash leads to another profit leak that requires attention. If a shop has a habit of paying bills before the revenue to handle those expenses comes in, a shop could end up in a downward spiral of borrowing money to pay for debts that should be

New England Automotive Report

handled by a well-maintained accounts receivable system. As one way to plug the leak, Dickinson referred back to the importance of knowing the cost of each service or item offered. For example, if an item costs six to eight dollars and your competitors are charging the customers $25 for it, don’t think you’re doing yourself any favors by charging $10 for it to get business. Instead, charge $20; this will still make you less expensive than the competition, but give you a stronger amount of revenue. The final profit leak comes from losing control of your receivables, which Dickinson suggested could be solved by maintaining regular invoicing, setting up a merchant account for credit card orders and staying on top of collections. Above all, Dickinson stressed that making even the smallest change to any of the practices above can have an enormously positive impact on a shop’s bottom line. “I have a client [in the auto body industry] who I’ve worked with for a little while now,” she offered. “They made really one small tweak to their operation...and they jumped their revenue $1 million the first year...It doesn’t necessarily take a lot to fix [a leak], but you’ve got to find it.”

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

t on eas mation r able o l f i n a i v s is a More e t a i c m. o iates.co ith Ass beckw ckwithAssoc e at eastb


New England Automotive Report

August 2015

27


28 August 2015

New England Automotive Report


New England Automotive Report

August 2015

29


LOCAL NEWS

ShorT-pAy iSSUeS explored AT wAlThAM evenT

“the document package” – would constitute high-quality, believable evidence in a courtroom. A segment of the presentation focused on fear and how it affects the body shop repair industry. The audience was told that fear was the basis of

On June 24, a roomful of body repair industry professionals and attorneys from three states attended a full-day seminar in Waltham to learn a variety of methods to help them collect their short-paid invoices from payers/ insurers. Participants were instructed on how to create their own pricing structures, charge for all products sold and work performed and to set up a method for collecting invoices not fully paid, including the use of the court system (especially for simple breach of contract cases). Longtime independent industry advocates Tony Lombardozzi and Peter Abdelmaseh (co-founders of Superare Advertising + Marketing Agency, located in Belmont, MA) spoke of the main reasons shop owners have fallen into the poor financial condition that plagues the industry, mainly the passive acceptance of what they refer to as the “Insurer Control and Payment System” or “ICPS.” Lombardozzi and Abdelmaseh contend that the ICPS has been constructed by many insurers that employ “pricing levers,” such as so-called Labor Rate “surveys,” dollars-times-hours product pricing and the ubiquitous “we don’t pay for that” response to random invoice line items. It was explained that insurers use these levers as negotiating techniques, and that they are designed with just one goal in mind: to suppress normal free market pricing mechanisms. Shops were advised to simply reject and “work around” that system. Shop owners were shown how the “ideal process” would work, along with the documentation and legal principles that could make “doing it the right way” practical for shops, and present a significant challenge for insurers to defend against. The presenters stressed that using the proper contracts and documentation – what they referred to as 30 August 2015

New England Automotive Report

Tony Lombardozzi (left) and Peter Abdelmaseh

continued on pg. 54


New England Automotive Report

August 2015

31


32 August 2015

New England Automotive Report


New England Automotive Report

August 2015

33


INDUSTRY UPDATE

CT SUpreMe CoUrT reverSeS

$34.7M hArTFord verdiCT As New England Automotive Report went to press, the Connecticut Supreme Court issued a verdict reversing the $34.7 million judgment in a much-discussed class action case against The Hartford Fire Insurance Company. Plaintiffs in the case included the Auto Body Association of Connecticut (ABAC) and hundreds of body shops in the state. As previously discussed in New England Automotive Report, the lawsuit (originally filed in 2003 and eventually certified as a class in a 5-0 decision) claimed that The Hartford regularly engaged in unfair business practices by using its in-house employee appraisers and network of DRP facilities to artificially suppress the Labor Rates paid to shops in Connecticut. In November 2009, a Supreme Court jury in Stamford awarded the shops $14.7 million for compensatory damages. Three years later, Connecticut Superior Court Judge Alfred J. Jennings awarded an additional $20 million in punitive damages after considering post-trial motions by the plaintiffs. Additionally, he issued an order granting injunctive relief requiring that The

34 August 2015

New England Automotive Report

Hartford “refrain from interfering with the independent judgment of motor vehicle physical damage appraisers in its employ in the performance of their duties…including the determination of the hourly rate to be applied in calculating the labor component of costs to repair.” The Hartford appealed the order, with closing arguments heard last January. In its decision, the Court stated that collision repair shops are “capable of representing their own interests, and certainly are under no obligation to accept insurancerelated work that is not sufficiently remunerative,” adding that the trial court “incorrectly concluded” the validity that the Plaintiff’s claim alleging unfair Labor Rate practices. The full text of the final verdict is available at tinyurl.com/pajm579. An extensive report on the decision will be featured in an upcoming New England Automotive Report. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY


New England Automotive Report

August 2015

35


VOCATIONAL SCHOOL SPOTLIGHT

pUTnAM ACAdeMy hoSTS ColliSion repAir AdviSory bbQ On June 16, more than 200 people gathered at the Automotive Collision Repair Technology Department at the Roger L. Putnam Vocational-Technical Academy in Springfield for the Third Annual Collision Repair Advisory BBQ. Held to thank the members of the program’s Advisory Board, as well as to foster stronger relationships between tomorrow’s repair professionals and the companies that will employ them, the event attracted students, vendors, educators, Committee

members (including Chairman and AASP/MA member Craig Gridley), state representatives and Springfield Public Schools Superintendent Daniel J. Warwick. The fun-filled gathering included a DJ, special raffle prizes and tables of delicious food, mostly prepared in the smoker provided by AASP/MA Board member Gary Cloutier. Brief presentations were given by Allan Smith of I-CAR and Bill Johnson of the Massachusetts Auto Body Appraiser Licensing Board

(ADALB), while AASP/MA member Steve Creanza of West Springfield Auto Parts received a special award for his exceptional efforts in support of the Academy’s Collision Repair program. Additionally, Kevin Lombard of Lombard Equipment was on hand to demonstrate current aluminum welding techniques and answer any questions from attendees regarding this new technology. The evening also included the AASP/MA Statewide Meeting, which was held

Putnam Sheet Metal instructor Les Gauthier (far left) and student Justin Montos (far right) present a gift to Springfield Public Schools Superintendent Daniel J. Warwick in honor of his family's Irish heritage as Putnam Collision Repair instructor John Kennedy looks on.

Putnam’s own Ken Downes helped serve up the fun.

Putnam’s Collision Repair class now boasts a Motojig motorcycle straightener. AASP/MA Board member Gary Cloutier’s smoker kept the food coming. 36 August 2015

New England Automotive Report

The festivities drew more than 200 members of the automotive community.


Putnam and AASP/MA honored Steve Creanza of West Springfield Auto Parts (second from left) for his strong support of the school’s Collision Repair program.

immediately following the announcement of raffle prizes and featured a guest presentation by Anne Dickinson of East Beckwith Associates (see story on page 26). For the first time in the event’s history, the BBQ included participation and attendance from the Advisory Committees and students from the school’s Electrical, Automotive Technology and Sheet Metal departments. “We all have the same purpose and mission,” offers Collision Repair Instructor John Kennedy, who is joined in his department by CoInstructor Ray Lapite and Paraprofessionals Ken Downes and Carmen Solis. “We’re state-of-the-art and on the cutting edge, and we want to be proactive and get these kids jobs.” Launched in December 2012, the Academy’s Collision Repair Center stands as one of the most extensive vocational training facilities in the nation. Putnam’s program follows the I-CAR Professional Development Program and an advanced NATEF curriculum. The school’s vast array of high-tech equipment includes an OTC Genesys automotive scanner, a Lincoln virtual reality welder, state-of-the-art welders, two SimSpray virtual reality paint simulators, a Chisum frame machine, a Smartboard to view webinars, a spraybooth set up for waterborne and solvent, a mixing room and a paint deck. Recently, the department brought in a Globaljig SuperRotax universal fixture system

Instructor John Kennedy (far left) and students from the Putnam Academy Collision Repair department pose with products donated by Rick Casey of LKQ/Keystone (second from left) through the Collision Repair Education Foundation (photo by Ken Downes)

and a Motojig motorcycle frame straightener. “We’re the only vocational school around that has that,” says Kennedy of the Motojig. “I’d like to talk to the State Police about straightening the frames on their motorcycles. I’d also like to talk to local police and bike shops so we can help them out. A lot of times, insurers will total a motorcycle, but with these capabilities, we can straighten them and show the kids how to do it.” By the end of Putnam’s fouryear course, students have the basic skills needed to handle mechanical, electrical, body, paint and frame repair – all of which make them highly attractive to an industry in desperate need of new employees. “As a whole, this country has devalued vocational technical education for far too long,” offers Putnam Vocational Director Hilary Weisgerber. “Now, the industries are clamoring for a skilled workforce. Folks are becoming very vocal about the need for replacement workers, so they’re very supportive of vocational technical education, especially in this Pioneer Valley area. We don’t operate in a vacuum; we depend on our Advisory Committee to educate us on new trends in the industry, along with new equipment.” In addition to celebrating the close of another successful year, the Collision Repair Advisory BBQ offered an opportunity for members of the auto body industry to

experience this impressive facility for themselves. As Kennedy says, “We like to leave a good impression, showcase all the new technologies we have and get everybody involved.” After touring the facility, AASP/MA President Molly Brodeur was quick to share her enthusiasm for what the school has accomplished. “It’s great to see that they have such a strong community that supports their program here,” she said. “I think we can all take something away from what John and his team have been able to do as far as really encouraging folks to participate in the program at the Advisory Board level.” The Academy wishes to thank 3M, C.A.R. Products, Hampden Zimmerman Electric Supply Co., West Springfield Auto Parts, LKQ/Keystone, Lombard Equipment, I-CAR and Formula Products for providing special raffle prizes for the event, in addition to those donated by the Sheet Metal Department (five business banners), Electrical Department (six gift certificates), Automotive Technology Department (three vehicle alignments, three oil changes) and Collision Repair Department (three complete vehicle reconditionings, three vehicle washes/waxes). For information on how to become involved in the Advisory Committee, contact Craig Gridley (Larry’s Auto Body) at (413) 583-5738. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

New England Automotive Report

August 2015

37


38 August 2015

New England Automotive Report


New England Automotive Report

August 2015

39


LEGAL PERSPECTIVE by James A. Castleman, Esq.

ACv, STATed vAlUe & Agreed vAlUe I got a call last week from a collision repair shop owner who was having trouble negotiating the cost of repair for a classic car. The vehicle owner had purchased a so-called “stated value” insurance policy, pegging the insured value of the car at $49,000. Because of the nature of the damage, as well as the work and parts needed to restore a classic vehicle, repair costs were going to be high. The insurance appraiser was warning the shop owner that the cost of repair plus the salvage value of the car was fast approaching the $49,000 stated value, and that he was going to total the car if the shop insisted that it needed any more money to make repairs. The shop owner called me, telling me he had quite a dilemma. “Hell,” he said, “this is a great car. Even with its damage, its salvage value alone is more than the $49,000 stated value – never mind the cost of repair. The appraiser doesn’t have a clue.” Most importantly, the shop owner wanted to know, “Is the insurance appraiser right?” Could he total the car if the cost of repair plus salvage value exceeded the insurance policy’s stated value — which it clearly did? Could he total the car, allowing the insurer to pay the stated value amount, and then take the title to the car and sell it for much more than the amount it was paying on the total loss claim? That did not seem proper, yet it seemed like it might be possible. Could it be so? ThE ShORT ANSwER, ThE LONG wAy AROuNd While it is not entirely clear, my short answer to the shop owner was that the appraiser almost certainly could not so easily total the car and allow the insurer to gain an unwarranted windfall. My answer was based upon the implied definition of “total loss” in governing insurance regulations. I say that the definition of “total loss” is implied, because it is not definitively spelled out in any Massachusetts statute or regulation. Yet, the Commissioner of Insurance’s regulations that set standards for the repair of damaged vehicles, at 133 CMR 3.05(2), state: “Whenever the appraised cost of repair plus the probable salvage [of a damaged vehicle] may be reasonably expected to exceed the actual cash value (ACV), a [licensed] staff or independent appraiser… shall complete a total loss report.” The implication is that a total loss occurs only when the cost of repair plus salvage value reasonably may be expected to exceed the ACV of the car. This is the almost universally accepted standard in the insurance industry. However, in the situation that the shop owner called 40 August 2015

New England Automotive Report

me about, isn’t the ACV equal to the stated value in the insurance policy? In my opinion, no, it is not! “Stated value” and “actual cash value” are two different concepts. Stated value is merely a dollar value agreed upon between the insurer and its customer for insurance policy purposes, setting an absolute upper limit on what the insurer is obligated to pay in all circumstances. While one might hope that a car’s stated value may be equal to, or at least close to, the actual cash value of the insured vehicle, in any particular instance it may not be (and may in fact be entirely arbitrary). Indeed, this seemed to be the case with the classic vehicle that the shop had called me about. Actual cash value, on the other hand, is what a vehicle is really worth, and this is the figure that an appraiser should use in determining whether to total a damaged car. ACV is the true fair market value of the car, or what a knowing, willing buyer would pay a knowing, willing seller, neither being under any compulsion to act. Unlike a fixed stated value, ACV is always an estimate, based on the best judgment of knowledgeable experts as to what market forces dictate. The same regulation that gives an implied definition of “total loss,” at 133 CMR 133.05(1), mandates that an insurer must consider four particular factors in determining a damaged car’s insured actual cash value when deciding whether to total the car. Those factors are: (1) “The retail book value for a motor vehicle of like kind and quality, but for the damage incurred.” This is the value set in any number of valuation guides, such as the NADA Guide, Kelley Blue Book or Edmunds retail values. Note that, for insurance purposes, ACV is the retail value of a car, not the trade-in or private party sale value. (2) “The price paid for the vehicle plus the value of prior improvements to the motor vehicle at the time of the accident, less appropriate depreciation.” This is a standard valuation concept, most applicable to specialty vehicles for which a fixed market does not exist or for which the market is limited. It also may be used to determine added value resulting from specialty upgrades to a car. (3) “The decrease in value of the motor vehicle resulting from prior unrelated damage which is detected by the appraiser.” This is a factor to be applied in determining an insured loss, to be used in conjunction with the other valuation methods, to make sure that an insurer is not paying for something beyond the scope of the insurance policy. (4) “The actual cost of purchase of an available motor vehicle of like kind and quality but for the damage


sustained.” This is probably the most accurate factor for determining ACV. After all, if there is an exact replica of the damaged car that is for sale and that can be purchased at a known price, then that is truly the actual cash value of the damaged car. But is there ever truly such a car? Unless it is a brand new car, coming off the showroom floor on the same day as the damaged car, it will have some differences in mileage, wear, options and condition. “Like kind and quality” is in the eye of the beholder. Yet, this standard allows consideration of things like the age of the tires, batteries and other wear items, how well the car has been maintained, how much mileage it has and other such factors. The bottom line for all of this is that the appraiser with whom the shop owner was dealing should not have been able to total their customer’s car unless the cost of repair plus the salvage value exceeded the true actual cash value of the car, using the regulatory standards for determining ACV and not equating the insurance policy stated value with it. ThEN, whAT’S SO GREAT AbOuT A STATEd VALuE INSuRANcE POLIcy? It is not uncommon for me to hear about the owners of classic or antique cars being told by their insurance agent that it is to their advantage to buy a stated value insurance policy. That way, they are told, they will make sure that they get the car’s true value if there is a total loss. But as indicated by the situation herein, that is not necessarily the case. In fact, a stated value policy may work to the insured’s disadvantage. There are basically three types of physical damage auto insurance policies available to owners of classic or antique vehicles: ACV policies, stated value policies and agreed value policies. Each has its own pros and cons. And what works best for one car owner may not work best for another. The typical standard ACV auto policy is the one that most of us have for regular private passenger automobiles. If there is a loss, the insurer is typically obligated to pay up to the actual cash value of the vehicle. This is no different for the owner of a classic or antique vehicle. If they have a standard ACV policy, then the insurer is on the hook for that particular car, not just for a car of the same vintage that has not been restored. The problem for classic and antique car owners is that if they have a loss, then it is their burden to establish that the car is a classic or antique, and it is their further burden to establish the true ACV of the vehicle. Establishing value for these cars is not as simple as it is for the run-of-the-mill recent vintage Mazda 3, Chevy Malibu or even BMW 750. Ideally, records should have been kept of all costs for the specialty vehicle, including purchase price, all details of restoration work performed, all parts costs, pictures of the vehicle in its restored condition and any appraisals of value that may have been made for the car. In order to make things easier for a specialty car owner, the concept of a “stated value” insurance policy was developed. The theoretical idea was that, for a specialty car, the owner could get an appraisal of value, to be evaluated by

the insurer, and that the insured and insurer could come to an agreement for the amount of physical damage insurance that would be applicable to the car. If there were a loss, then the insured would not have a burden of establishing the insured value of the car. The stated value would govern. The value and the premium would be set. The problem with stated value policies is that, in reality, they set the maximum value that an insurer will pay, not an agreed ACV. If you read the fine print of the policies, you will determine that the insurer will pay the lesser of the stated value or the ACV of the car if there is a total loss. So if the ACV is less than the stated value, then the insurer will pay the ACV for a total loss; if the ACV is greater than the stated value, then the insurer will pay only the stated value. While the insured has less of a burden establishing that a car is a classic or antique, the insured may actually have less insurance coverage than if they had purchased a standard ACV policy. The insurer, on the other hand, is able to set an upper limit on its liability. The agreed value policy is often seen as a better coverage alternative for a specialty car owner. Like a stated value policy, a vehicle will be given a specified value for purposes of the policy. But with an agreed value policy, the insurer will give the actual agreed value; with some agreed value policies, the insurer will pay the greater of the agreed value or the ACV. Although with an agreed value policy there is frequently better coverage than with a standard ACV policy, the premiums are higher and the insurance is more difficult to get. Further, the insured has the burden of establishing the ACV of the vehicle at the time that the policy is purchased. After all, an insurer is not going to agree to provide more coverage than a car is worth at the inception of the policy; it is just going to agree to provide at least that amount of coverage if there is a loss, since it can knowingly set a meaningful premium. cONcLuSION If you have a customer with damage to a classic or antique vehicle, it is imperative to find out what type of insurance policy that they have. Is it ACV, stated value or agreed value? Then, it is important to know if the insurer is going to have a maximum liability, how they intend to determine salvage value of the car and whether it may be a total loss. In doing so, be aware that the insurer may not be correct in what it believes, and be aware of what governing Massachusetts regulations really say. And if you own a classic or antique car, it is critical to know the difference between the types of auto insurance policies that might be available for your car, as well as the significant differences in coverage between those types of policies. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at

jcastleman@prclawoffice.com. New England Automotive Report

August 2015

41


42 August 2015

New England Automotive Report


New England Automotive Report

August 2015

43


2015 AASP/MA GOLF OUTING

HIGHLIGHTS

2

1

4

3

5

THE PLAYERS:

6

1. The First place team from kearns Collision. (l to r): ryan Sifferlen, Adam izbicki, dirk koopman, Thomas Coloniair 2. The Second place/hole in one Sponsor/long Automotive team. (l to r): Tom Schube, Tim white, dave ovalles and bill Spellane 3. The Third place team from Cape Auto body (l to r): Tom Mayer, kevin gallerani, Sean Condon and lucas rhodes 4. The team from Tournament Sponsor enterprise rent-A-Car (l to r): keith ells, Matt Cliffe, Seth roy and Mike kenton 5. (l to r): John panzino Jr. (T&S Auto body), Mike Johnson (Sherwin-williams), david elie (Acme body & paint), John panzino (T&S Auto body) 6. (l to r): Al brodeur (Al brodeur's Auto body), AASp/MA president Molly brodeur (Al brodeur's Auto body), Anne dickinson (east beckwith Associates), paul Sargeant (Al brodeur's Auto body) 44 August 2015

New England Automotive Report


JULY 8, 2015 • CHARTER OAK COUNTRY CLUB • HUDSON, MA PHOTOS BY JOEL GAUSTEN

8

7

9

10

11

12

7. (l to r): Tony briguglio (Albert kemperle), leonardo rodriguez (Albert kemperle), rick Starbard (rick's Auto Collision) 8. (l to r): peter langone (langonet Auto body & Frame), gary Cloutier (Cloot's Auto body), Justin Forkou (290 Auto body), paul hendricks (hendricks Auto body) 9. (l to r): Scott randall, Mary ellen randall, richard Connor and Matt peloquin of FinishMaster 10. (l to r): Chris Sachs, Scott Carney, brian duffy and Albino dos Santos of the keystone Automotive/lkQ Corporation (hole in one Sponsor) team 11. (l to r): Chris Carlin, Shawn Flanders, Tim Carlin and Mike Ambrosino of the Fuller Automotive team 12. (l to r): roth wennerstrom (best Chevrolet), darlene Andrade (deluze Collision Center), evan leather (Martin Senour Automotive Finishes)

New England Automotive Report

August 2015

45


AASP/MA THANKS ALL THE SPONSORS OF THIS YEAR’S TOURNAMENT!

AASP/MA GOLF OUTING

HIGHLIGHTS

In addition to winning Closest to the Pin, Leonardo Rodriguez of Albert Kemperle cleaned up at the raffle!

Tim Carlin (Fuller Auto Body team) won a Golf Gift Set courtesy of Mercedes-Benz of Burlington

Tournament Sponsor: Enterprise Rent-A-Car Hole In One Sponsors: Keystone Automotive/LKQ Corporation R.H. Long Automotive Group Tournament Prize Sponsor: Bald Hill Dodge/Chrysler/Jeep/Kia Raffle Sponsor: Sherwin-Williams, Guy's Auto Body, J & R Auto Body Supply, Mercedes-Benz of Burlington Longest Drive Sponsor: Lynch Associates, Inc. Closest to the Pin Sponsor: cPrax Internet Marketing Breakfast Sponsor: J & R Auto Body Supply Lunch Sponsors: Best Chevrolet, Gonnello SEO Hole Sponsors:

Roth Wennerstrom (Best Chevrolet) won the Longest Drive

Sean Condon (Cape Auto Body team) took home Red Sox tickets courtesy of J&R Auto Body Supply

CONGRATULATIONS TO OUR WINNERS First Place Team Ryan Sifferlen, Adam Izbicki, Dirk Koopman, Thomas Coloniair Second Place Team Tom Schube, Tim White, Dave Ovalles and Bill Spellane Third Place Team Tom Mayer, Kevin Gallerani, Sean Condon and Lucas Rhodes 46 August 2015

New England Automotive Report

Admiral Fasteners; Al Brodeur's Auto Body; Albert Kemperle; Auto Body Builders, Inc.; Body and Paint Center of Hudson; Boutiette Auto Body; Cape Auto Body; Colonial Ford-Plymouth; Don Kennet, Inc.; FinishMaster; Greco Publishing, Inc.; Hendricks Auto Body; Hogan and Van Auto Body; Ira Toyota/ Scion of Danvers; Jaffarian Automotive Group; Linders, Inc.; Marlboro Nissa; Mercedes-Benz of Burlington; Paster, Rice & Castleman; PPG; Rainbow Auto Paint & Body Supplies; Rick’s Auto Collision; Tasca Automotive Group; West Springfield Auto Parts


New England Automotive Report

August 2015

47


48 August 2015

New England Automotive Report


New England Automotive Report

August 2015

49


EQUIPMENT AND TOOLING by Jacquelyn Bauman

neCeSSAry ToolS, neCeSSAry Spending What pieces of equipment should every good shop have? According to industry expert Larry Montanez (P&L Consultants), the answer is both simple and complicated. The short answer is one that most shop owners have likely heard a thousand times before. Every good shop needs a resistance welder, a frame machine, a measuring system, additional anchoring system, a silicone bronze welder, assorted tools, rivet guns, a dent puller and now an aluminum welder. Montanez points out that all of this equipment should have been purchased within the last four years or less. That’s the easy part. What most shop owners don’t want to hear, however, is that the number one factor when it comes to equipment is quality. The unfortunate truth of the industry is that you get what you pay for. If a shop isn’t willing to pay what is necessary, the repairs made to the vehicle are going to be subpar. “You can buy a low-grade basic aluminum welder for under $8,000, but it’s not going to give you the same type of welds as a $12,000 - $16,000 welder,” Montanez stresses. “Everyone is being misled because they’re more worried about their pocketbooks.” There’s no question that the more you spend, the more value you get. This is especially true for equipment used on aluminum repairs. “Almost any steel MAG welder can do the job on steel components, as long as you adjust the settings properly,” he explains. “That’s just not the case for aluminum welders. If you buy an aluminum welder that is approved for Ford, which is about $7,000 - $9,000, it’s not going to be certified for repairs on a Benz or Audi or any other European OE. But if you spring for the aluminum welder approved for the European OEs, even though it’s $12,000 50 August 2015

New England Automotive Report

$16,000, it’s going to fall under certifications to repair a Ford.” Aside from a welder, one very standard piece of equipment that should be in every shop is a frame machine, a structural realignment/repair apparatus. For this, he suggests having a machine that is less than five years old in your shop and that has either a universal jig system or specific jigs for each car. He stresses not to use a machine that grabs by the pinch weld clamps, as all European OEs don’t allow pinchweld anchoring and many of the Asian and American vehicles do not have the strength in the pinchwelds to resist the applied force when pulling. The biggest piece of advice that Montanez has for shops is simple. Don’t cut corners. While it is necessary to be a business owner and make the most of your purchases, Montanez explains there is a certain point where these cost-cutting measures are just downright irresponsible. “There are shops out there that are still clipping cars,” he says, citing the reason as a combination of being uninformed and willfully stubborn about the changing industry. “So many shops stay in their own little world. They don’t want to change and they don’t want to pay the price. Take, for example, the processes dealing with steel outer panels on BMW vehicles. You have to glue and rivet those panels back on, even though BMW weld-bonded them at the factory. I’ve had guys tell me, ‘I don’t have the rivet gun, so I’ve welded it on.’ That’s wrong.” Every day in this business lays the choice between what is right and what is cost-effective, but what every shop owner must remember is this: The life of the customer is in your hands, and it is all your liability and no one else’s. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY


New England Automotive Report

August 2015

51


52 August 2015

New England Automotive Report


2016 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service providers of Massachusetts (AASp/MA), i will abide by the association’s bylaws and code of ethics. i understand that membership in AASp of Massachusetts is non-transferable, and i must remain current with my dues in order to be a member in good standing. i understand that if i discontinue my membership that i must immediately cease using any association promotions, logos or materials. Additionally, i understand that as part of my AASp of Massachusetts membership, i will receive New England Automotive Report, the official publication of AASp of Massachusetts, faxes, emails and other mailings.

*** PLEASE TYPE OR PRINT LEGIBLY *** BUSINESS INFORMATION: Mr.

What benefits motivated you to join AASP of Massachusetts?

Mrs.

Ms.

Business Representative Name:

________________________________________________________

____________________________

Business Name ____________________________________________

PERSONAL INFORMATION:

Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ Street

Phone Number ( E-mail Address

City

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

Enrolled By (Name and Address) ________________________________________________________________________________________ MEMBERSHIP TYPE

Name ____________________________________________________

REPAIRER MEMBER (check one) Collision Repair Shop Mechanical Repair Shop Both, Collision & Mechanical Repair Shops Other Repair Shop

Nickname ________________________________________________ ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2017)

$40/month SUPPLIER/ASSOCIATE MEMBER (check one) Auto Paint/Crash Parts/Auto Parts/Wholesaler Equipment/Tool Supplier Manufacturer/Sales Agent Services (Computers, Software, Vehicle Rental, Other)

________________________________________________________ Just like good tools and equipment, membership in AASP of Massachusetts is a valuable investment. AASP of Massachusetts works for you through such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services. Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

$425/year - beST vAlUe!

NEW! Political Action Committee (PAC) Donation ...............$_____

Credit Card: LIST OTHER SPECIALTIES ____________________________________

$115/quarter

Visa

MasterCard

Card Number: __________________________________________ Expiration Date: ________________________________________ Signature: ______________________________________________ Date: __________________________________________________

Check or Cash

For oFFiCe USe only Check number ______________________________Check date ________________________Check Amount ______________________________ date Joined ______________________________Member number ______________________next bill date ______________________________

12 post office Square, 6th Floor • boston, MA 02109 phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible. New England Automotive Report

August 2015

53


LOCAL NEWS

continued from pg. 30 N

the entire insurance industry – after all, fear is why people and companies buy policies – and insurers turn that fear against their vendors as well. Fear causes irrational decision-making and distorts pricing as well. There was a high level of interaction with the audience, including several exchanges regarding legal issues. As the question-and-answer session wound down, many

participants expressed satisfaction with the knowledge they gained at the seminar and were anxious to implement the proper practices in their own shops. The event ended with a preview of new seminars under development, the company’s consulting services and a short presentation of Superare’s branded marketing program, UltiSure, which will be released soon to the industry. MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

E

W

E

N

G

L

A

N

D

AUT M TIVE AD INDEX Audi Group ....................................................17 Axalta Coating Systems ..................................4 Bald Hill Chrysler Jeep Dodge Ram..............8 Balise Wholesale Parts Express ....................25 Baystate Chrysler/Jeep/Dodge ..................43 Bernardi Group ........................................28-29 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................22-23 BMW/Mini of Warwick ................................27 Clay Subaru ....................................................34 Colonial Auto Group ....................................20 Empire Auto Parts............................................9 Enterprise ........................................................11 First Chrysler-Dodge-Jeep-Ram ..................21 First Ford ........................................................21 First Hyundai..................................................21 Ford Group ....................................................33 Future Cure ....................................................30 G&M New England LLC ..............................16 Honda Group..................................................42 Hyundai Group ..............................................38 Imperial Ford ..................................................33 Infiniti of Norwood........................................32 Ira Group....................................................12-13 Kelly Automotive Group............................IBC Linder’s, Inc. ..................................................54 Long Automotive Group ..........................OBC Mazda Group..................................................51 Mopar Group..................................................35 Nissan Group..................................................19 PPG ....................................................................3 Robertsons GMC Truck ................................10 Sarat Ford-Lincoln ........................................43 Sentry Group ..................................................39 Subaru Group............................................48-49 Tasca Group ......................................................6 Toyota Group..................................................47 Village Auto Group........................................31 VW Group ......................................................52 Wellesley Toyota/Scion ..................................9

54 August 2015

New England Automotive Report




Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.