FENDERBENDER.COM / SEPTEMBER 2023
THE MESSY STATE OF RIGHT TO REPAIR
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Strategies & Inspiration for Collision Repair Success
DIFFERENT CUSTOMERS, DIFFERENT APPROACHES PAG E 47
With strong leadership talent and a communityminded business, Dan Morrow’s Morrow Collision Center, in Lincoln, Nebraska, is in a league of its own.
WHEN IS THE RIGHT TIME TO INSTALL AN EV CHARGER?
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TURNING A NEGATIVE INTO A POSITIVE
THE FENDERBENDER 2023 AWARD WINNER PAG E 20
MANAGING CONSUMER EXPECTATIONS AND CO-PAYS
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CONTENTS
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2023 FENDERBENDER AWARD WINNER
Dan Morrow has made his mark on the community of Lincoln, Nebraska, as well as the collision repair industry. BY TODD KORTEMEIER
FenderBender (USPS Permit 25614), (ISSN 1937-7150 print) is published monthly by Endeavor Business Media, LLC. 1233 Janesville Ave., Fort Atkinson, WI 53538. Periodical postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to FenderBender, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. ($90 per year). All subscriptions are payable in U.S. funds. Send subscription inquiries to FenderBender, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached toll-free at 877-382-9187 or at fenderbender@omeda.com for magazine subscription assistance or questions. Printed in the USA. Copyright 2023 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.
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CONTENTS
SEPTEMBER
STARTER
QUICK FIX
16
09
PAST THE PAGE
Compensation for research time
11
BREAKDOWN
Right to Repair letter causes a stir
14
NUMBERS
KPI tracking and performance
16
LIGHT HITS
Repair costs continue to climb
STRATEGY
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47
THE SOP
Looking at benefits differently
49
CUSTOMER SERVICE
Understanding customer types
55
ADAPT
AI in automotive repair?
57
TECH+TOOLS A look at EV charger installation
52
CASE STUDY
Bookkeeping excellence
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09
COLUMNS
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52
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SHOP PROFITS Fundamentals win the day BY G REG LOB S IG E R
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COLLISION COURSE
Layouts for added efficiency BY TIFFANY ME NE FE E
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DUE PROCESS
Navigating insurers and customer service BY DRE W B RYANT
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September 2023
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CONTENTS
ONLINE EXTRAS
CL ICK ON THE L OGO BEL OW F OR PRODUC T INF ORMATION EDITORIAL
3M
CCC Intelligent Solutions
OEM Calibration
ADL / Auto Data Labels
Colours, Inc.
PartsTrader
Matt Hudson Group Editorial Director Jay Sicht Editor-in-Chief Hanna Bubser Associate Editor Kacey Frederick Assistant Editor Leah Marxhausen Special Projects Editor Drew Bryant Contributing Writer Tiffany Menefee Contributing Writer Greg Lobsiger Contributing Writer Todd Kortemeier Contributing Writer Lindsey Gainer Contributing Writer Carol Badaracco Padgett Contributing Writer Noah Brown Contributing Writer
EDITORIAL ADVISORY BOARD
Jordan Beshears Steve’s Auto Body Sheryl Driggers Universal Collision Frank Rinaudo Frank’s Accurate Body Shop Jason Mundy Mundy’s Collision Center Stan Medina Certified Collision Works
SALES
asTech
FBMC
Polyvance
202 3
AUTEL
FinishMaster
PPG Industries
Axalta Coating Systems
Ford
ProColor Collision
Andrew Johnson Associate Publisher ajohnson@endeavorb2b.com Mattie Gorman-Greuel Associate Sales Director Cortni Jones Director of Business Development Diane Braden Account Executive (National Accounts) dbraden@endeavorb2b.com Marianne Dyal Account Executive (National Accounts) mdyal@endeavorb2b.com Chad Hjellming Account Executive (National Accounts) chjellming@endeavorb2b.com Bob Marinez Account Executive (National Accounts) rmarinez@endeavorb2b.com Lisa Mend Account Executive (National Accounts) lmend@endeavorb2b.com Michael Parra Account Executive (National Accounts) mparra@endeavorb2b.com Martha Severson Account Executive (National Accounts) mseverson@endeavorb2b.com Kyle Shaw Account Executive (National Accounts) kshaw@endeavorb2b.com Sean Thornton Account Executive (National Accounts) sthornton@endeavorb2b.com Ryan McCanna Administrative Assistant
ART AND PRODUCTION
Mariah Straub Production Manager Jen George Ad Services Manager Mitch Bradford Art Director Car-O-Liner
KECO Body Repair Products
SATA / DanAm Air
CARSTAR
Launch Tech (USA) Inc.
Spanesi Americas
HOW TO RE ACH US
TECH USA
LKQ Corporation
ENDEAVOR BUSINESS MEDIA, LLC
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LET TE RS TO THE E DITOR editor@fenderbender.com
Opinions expressed in FenderBender are not necessarily those of Endeavor Business Media, and Endeavor Business Media does not accept responsibility for advertising content.
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VIDEOS
PA ST T H E PAGE
ASA RELEASES STATEMENT ON COMPENSATION FOR OEM PROCEDURE TIME
September 2023
DREAMSTIME_M_208165945
PODCASTS
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WEBINARS
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NEWS
voiced by its members and those in the independent auto repair community of not being fairly compensated for time spent working. Specifically, the complaint has been that estimating databases do not take into account the time it takes to research OEM repair procedures, which can potentially equal hours of extra labor. The ASA has argued that this is an essential part of vehicle repair and is not optional. In its official statement, the ASA believes that insurers, estimating databases, and information providers must acknowledge the time needed for technicians to research the necessary OEM repair procedures, which vary from vehicle to vehicle and are updated frequently. “OEMs should provide clear and consistent access to repair information and procedures for all collision repair facilities, insurers, and consumers,” read the statement. “OEM repair guidance should also reflect common goals of safety, quality, and cost effectiveness to benefit consumers.”
THE AU TOMOTI V E SERV ICE ASSOCI ATION’S (ASA) Board of Directors has approved a statement regarding technicians being compensated for time spent researching OEM repair procedures, according to a press release. The Board has approved a policy position statement initiated by the ASA’s Collision Operations Committee as a result of concerns
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Visit FenderBender.com/news for daily updates from around the collision repair industry.
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September 2023
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NEWS
Q U I C K
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IDEAS
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PEOPLE
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TRENDS
F I X
AUTO CARE ASSOCIATION
BREAKDOWN
THE MESSY STATE OF RIGHT TO REPAIR
THE RIGHT TO ACCESS diagnostic repair data has been a hotly debated topic within the industry as of late. While automakers insist that opening access to data will jeopardize safety, independent shops have argued it is a profit-driven strategy to direct consumers to dealerships for services and repairs.
A recent agreement between major organizations has sparked doubt By KACEY FREDERICK
September 2023
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QUICK FIX
“THIS IS A CRITICAL TIME IN OUR INDUSTRY THAT ASSOCIATIONS NEED TO BE ACTING TOGETHER INSTEAD OF EXECUTING AGREEMENTS ON THEIR OWN THAT FAIL TO ADDRESS IMPORTANT CONCERNS VOICED BY MANY THROUGHOUT THE INDUSTRY.” —Sheri Hamilton, Executive Director, Midwest Auto Care Alliance
Tensions have been rising in discussions surrounding Right To Repair, especially after events such as a recent attempt by a group of automakers to stop a Right to Repair law passed by voters in Massachusetts from taking effect. Many in the industry are feeling the pressure to make their positions on the issue known, which is exactly what was recently done by the Automotive Service Association (ASA). In collaboration with the Society of Collision Repair Specialists (SCRS) and the Alliance for Automotive Innovation (which represents OEMs), the ASA created a letter to members of Congress with views on right-to-repair collectively agreed upon by the three organizations, based upon a national agreement made in 2014 called the Memorandum of Understanding. The letter stated that information provided to authorized dealers should also be accessible to independent shops. This can range from telematics data to technologies and powertrains for all vehicles, including gasoline, diesel, fuel cell, electric battery, hybrid, and plug-in hybrid electric. Ways to make repair information accessible to others were proposed, such as
September 2023
having it directly accessible through an automaker’s website, shared access points such as www.OEM1Stop.com, or third-party information providers.
Responses Follow Though the letter was presented as a stance representing the industry, it has not been met with universal approval. The Auto Care Association’s response called the letter “a thinly veiled attempt to confuse lawmakers and drivers” and said it was not consulted on the drafting of the ASA’s agreement document. The Association pointed to f laws in prior agreements, including that OEMs would not be bound to any participation in Right to Repair compliance and that OEMs would not be obligated to allow direct access to telematics data. The Auto Care Association supports a piece of federal Right to Repair legislation called The REPAIR Act. Another group, the Auto Care Alliance, called into question ASA’s true stance on right-to-repair, claiming that rather than supporting it, ASA has been fighting against right-to-repair legislation for the past two decades.
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As evidence of this, the Auto Care Alliance cited a 2003 agreement made between manufacturers and ASA that the Auto Care Association said “lacked enforcement” and slowed down progress in gaining right-to-repair legislation. Though the ASA referenced the 2014 Memorandum of Understanding as the basis of its agreement, the Auto Care Alliance doubts the choice of this foundation, arguing that the terms of that 2014 agreement have not since been honored and that requests for dispute resolution have gone unanswered. “This is a critical time in our industry that associations need to be acting together instead of executing agreements on their own that fail to address important concerns voiced by many throughout the industry, especially when these organizations represent a minority of the industry’s total number,” said Auto Care Alliance and Midwest Auto Care Alliance Executive Director Sheri Hamilton. In addition, MEMA Aftermarket Suppliers has also come out with a statement questioning the purpose of the agreement. While the organization credits the agreement with creating more conversation
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The Impact on Smaller Operations Many others in the industry, too, have expressed doubt over what the ASA agreement has truly proposed. According to coverage from Wired, many are still concerned with smaller, independent businesses, or those who work on vehicles at home, not having access to information from cameras and sensors. This includes data on location, speed, acceleration, and the performance status of the vehicle’s software. “We want easy and affordable access to that information for the independent repair shop,” explains Auto Care Association Chair Corey Bartlett. Shops that are able to afford to pay into certified networks of shops are often able to access information easier, such as Michael Bradshaw, vice president of K & M Collision in Hickory, North Carolina, and vice chair of the Society of Collision Repair Specialists, whose shop pays to be in 30 automaker certification programs
that include Kia, General Motors, Bentley, and Rivian. Though Bradshaw doesn’t see a problem with having to pay for information, for shops that are smaller and working with more limited budgets, it limits the amount of work they can safely perform. Many worry that this paywall to information will only grow higher. “My fear, if no one gives some stronger guidelines, is that I know automakers are going to monetize car data in a way that’s unaffordable for us to gain access,” said Dynamic Automotive Co-Owner Dwayne Myers. There is still much discussion to be had on right-to-repair legislation, but it is a discussion that the industry must be involved in–not a select group. “In terms of how automakers behave and whether vehicle owners or repair shops will get access to information—I don’t think this will change anything,” stated SecuRepairs.org Founder Paul Roberts.
FOTOGRAFIXX / STOCK / GETTY IMAGES PLUS
surrounding right-to-repair, it echoed criticism of it not proposing any real methods to preserve access to vehicle data, such as the lack of a process for enforcing right-torepair legislation. In MEMA’s statement, they outline specific issues that must be addressed regarding right-to-repair: access to data for light-duty, medium-duty, and heavy-duty vehicles, as well as explicit protection for consumers to access that data. “MEMA Aftermarket Suppliers welcomes the opportunity to work with all parties to align on a federal solution that reflects the principles of consumer choice and a free market, includes the expertise of the supplier community, has a mechanism for real enforcement, and prioritizes consumers, their safety, and their economy–and the innovative industry we serve,” MEMA’s statement reads. MEMA follows this by affirming its support of the REPAIR Act, claiming that it addresses these issues.
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QUICK FIX
NUMBERS
DO YOU TRACK KPIs? W H E N L OO K I N G AT I N D I V I D UA L performance, there is a world of difference between shops that do and do not routinely track KPIs. Here’s a side-by-side comparison of the numbers that a majority of shops reported across several categories.
These figures are part of the 2023 FenderBender Industry Survey Report.
$2.5M - $4.9M
Shops That Don’t Track KPIs
Annual Revenue
$1M - $2.4M
$4,000 - $4,999
ARO
$3,000 - $3,999
40% - 49%
Gross Profit Margin
29% or lower
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RUDZHAN NAGIEV / ISTOCK / GETTY IMAGES PLUS
Shops That Track KPIs
Introducing the new
3M™ Perfect-It™ Random Orbital Polishing System Introducing the 3M™ Perfect-It™ Random Orbital Polishing System — a professional-grade set of tools, pads and polishes – typically used in detailing shops, re-engineered for the collision repair industry. Unconventional, but welcomed change in process that allows you to get that show car shine, as if the car had never been touched. It’s paint finishing redefined. We’ve turned one of the most feared steps in automotive repair into one that any technician can master on their first go. Experience a system designed to work together – an easy-to-use polishing tool with specially-formulated liquids and pads. Your technicians should have no more fear of swirls, burn through, or other pitfalls common with traditional rotary buffing systems. Don’t let paint finishing control you. It’s time to take back control of the finish.
Consistent Swirl-Free Finish Avoid Burn Through and Rework Designed for All Skill Levels
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For additional information, including important safety and warranty information regarding 3M Automotive Aftermarket products, visit www.3Mcollision.com/ info. Copyright 2022 by 3M. All rights reserved. 3M and Perfect-It are trademarks of 3M Company.
LIGHT HITS
MITCHELL RELEASES REPORT ON EV AND ICE CLAIMS
According to a press release from the company, Mitchell’s Q2 2023 report, ‘Plugged-In: EV Collision Insights,’ found an increase in the frequency of repairable electric vehicle (EV) claims, citing an increase to 1.49% in the U.S. and to 2.64% in Canada in the last quarter. Though claims severity for repairable EVs has outnumbered that of internal combustion engine (ICE) vehicles, recent data has shown EVs to be more likely to be drivable following an accident, explained Mitchell’s Director of Claims Performance Ryan Mandell. This is credited to EVs having fewer moving parts. The report includes average claim severity, which was $983 higher for EVs in the U.S. and $1,328 higher in Canada than ICE vehicles. When looking solely at Tesla models, those numbers grow to $1,589 and $1,600, respectively. EV par ts were found more likely to come directly from the manufacturer, with 90.75% of EVs using OEM par ts,
September 2023
contrasted with 66.50% for ICE automobiles. Average refinish hours are accounted as a large factor in collision claim expenses, with the process often accounting for 40% of the total labor time for an average repair order. Q2 saw an average of 8.51 in refinish hours for EVs, versus an 8.02 average for ICE vehicles.
PRICE OF REPAIRS UP 20% FROM PREVIOUS YEAR
The price of car repairs has increased by nearly 20% in the past year, as shown by the consumer price index. CNBC spoke to experts in the industry to pinpoint what the causes of these price increases could be. With vehicles becoming more technologically advanced and sensors being placed in areas such as the bumper, which are commonly damaged, these electronic components can make jobs more difficult and drive up prices. Shortages in the supply chain have also made parts more expensive, as well as causing the new and used vehicle market to shrink, resulting in consumers
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keeping older vehicles rather than buying new ones, according to S&P Global Mobility analysts. The sharing of photos and videos with customers to show problems with their vehicles can increase the cost of a repair by $260 and is also listed as a potential reason for the increase in prices. According to NHTSA data, car crashes have also been on the rise. This combined with a decrease in technicians has caused the cost of labor to climb. Though the industry continues to face these issues, Cox Automotive data shows that revenue generated from repair orders was up 31.8% in June compared to January 2019.
AUTOMAKERS COLLABORATE TO CREATE EV CHARGING NETWORK
A group of major automakers has announced plans to start a company together that would provide electric vehicle charging in the United States, Reuters reports. General Motors (GM), Stellantis, Hyundai Motor, Honda, BMW and
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CHOOCHART CHOOCHAIKUPT / ISTOCK / GETTY IMAGES PLUS
QUICK FIX
Mercedes Benz have started a jointventure company that plans to produce 300,000 chargers placed along highways and in cities. Chief executives from the brands claimed that a charging station network resembling gas stations with restrooms, food service and retail operations would improve the process of transitioning to EVs. The announcement introduces competition to Tesla, which has the largest network of fast chargers, currently having nearly 18,000 Superchargers across the country. Many automakers have agreed to implement Tesla’s charging technology, the North American Charging Standard (NACS), in future vehicles–including GM. GM claimed that its new company is meant to reduce costs and “won’t change GM’s existing commitments or collaborations.” Though it will be a competitor with Tesla’s charging network, it will support NACS as well as the Combined Charging System (CCS). The new company was questioned on whether it would face pushback from U.S. regulators on antitrust grounds. A spokesperson responded that the companies would comply with regulatory approvals as outlined in a joint statement from them.
I-CAR LAUNCHES COLLISIONCAREERS.COM
I-CAR has announced the launch of CollisionCareers.com, a platform to connect individuals with opportunities in the collision repair field, according to a press release. Created in collaboration with the Collision Repair Education Foundation (CREF), the website will aim to provide a neutral brand for industry partners to strategize on programming and marketing initiatives to attract talent and connect them with job seekers and students. Programs planned for the website include marketing activities that target popular events and influential industry figures sharing their insights online. The website will contain articles, tutorials, and curricula related to collision repair, as well as a search function to browse local Gold Class shops and CTE schools. “This is the beginning of a plan that was mapped out with industry feedback and
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includes a soon-to-be-released update to the curriculum for technical schools and entry-level employees as well as resources to help repair facilities mentor, train and onboard new hires,” explained I-CAR CEO & President John Van Alstyne.
MSO SYMPOSIUM ANNOUNCES 2023 DATE AND LOCATION
The MSO Symposium has announced the date and location for its 12th annual MSO Symposium, according to a news release. The program provides executivelevel information on current trends in the collision repair industry along with microand macroeconomic impacts. The 2023 conference will take place in Las Vegas on Oct. 30, the Monday of SEMA/AAPEX week, at the Mirage Convention Center. Similar to years past, the event’s agenda, timing, and content is directed by industry leaders who voluntarily participate on the program’s advisory board. This year’s event will begin at 9 a.m. PDT with coffee, networking, and a sponsor showcase. Following is an informative program that highlights important business trends involving the economy, private equity, and industry consolidation, in addition to informative panel discussions and future outlooks in the collision repair industry. The oneday conference sessions conclude at 5:30 p.m. and an evening networking reception will directly follow. For those interested in registering for the 2023 event, be advised that attendance is limited, and you must qualify to attend. Those eligible to attend this closed meeting include insurers, OEMs, multi-shop operators, and single location repair facilities with revenue exceeding $3 million in annual sales.
ASE OFFERING VOUCHERS FOR EV CERTIFICATION TESTING
The National Institute for Automotive Service Excellence (ASE) is now offering vouchers for EV certification testing, according to a press release. The ASE recently released new standards for working with or around electrified vehicles, called Electric Vehicle Technician/Shop Personnel Electrical Safety Standards. With these new standards came two new tests: xEV
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Electrical Safety Awareness Certification (Level One) and Technician Electrical Safety Certification (Level Two). Shop owners who want to encourage their employees to become certified in EV work are now able to purchase vouchers online for their employees to have access to taking these tests. Upon purchasing vouchers, they can be distributed to others, who will only need to make an account on ASE’s website to take the test. “We have had a very positive response to the recent introduction of our new EV standards and testing program,” stated ASE President Tim Zilke. “These tests were developed in conjunction with industry experts so they will be challenging, but more importantly, they will ensure that automotive service professionals who earn the credentials are well prepared to service and repair hybrid and electric vehicles.”
LKQ CORPORATION PARTNERS WITH TECHFORCE FOUNDATION
The LKQ Corporation has announced a partnership with TechForce Foundation, according to a press release. The strategic partnership was made with LKQ’s Community Foundation, which seeks to assist TechForce Foundation with addressing the shortage of workers and supporting those entering the industry. LKQ has donated $50,000 in support of TechForce Foundation’s charitable programs and offers 5 jobs for every student graduating from tech school. To demonstrate the importance of such programs, TechForce Executive Director Jennifer Maher uses the example of a recent TechForce scholarship and grant recipient named Hayden, a 30-yearold who spent a decade in a career he did not enjoy before discovering an automotive program he attended with the support of TechForce Foundation. Now, he is fulfilled with his career as a professional technician. “Not everyone wants to go the 4-year university path. For those who love problem-solving and working with their hands, a technical career may be a perfect fit,” continued Maher. “We are proud to welcome LKQ as a partner in our work to change the public perception of these high-tech STEM careers.”
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E H T N I O J K R O W T NE A proven business model for 20 years, ProColor Collision is growing! Independent body shop owners driving their business forward are choosing ProColor. Standardized operations, management tools and consolidated technology solutions improve performance. The ProColor team of industry professionals are dedicated to performance excellence offering the sales, operational and marketing support needed to take business to the next level. ProColor Collision is committed to helping shop owners grow their business locally while leveraging established relationships with global insurers, suppliers, and fleet companies.
The ProColor PROcess is a winning formula. Find out more at procolor.com
ProColor Collision USA LLC, 650 Pelham Blvd, Suite 100, St. Paul, MN 55114 ® Registered Trademark of MONDOFIX INC.
COLUMNS
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Where’s the beef?
Do you have the recipe for shop profitability?
JOSIE SMITH PHOTOGRAPHY
For the old folks like me from the 1980s, we
likely remember this old advertising line from Wendy’s restaurant. For you young folks, it is basically a commercial about how some fast-food hamburgers can have a great-looking hamburger bun, but once opened you only find a small hamburger patty inside. When we parallel this TV ad with collision repair, many shops are booked out months and are having record gross sales. Instead of “Where’s the beef?” it’s “Where’s the profit?” Most shops’ parking lots are still full of wrecked cars waiting to get inside. Most customers must wait three weeks to three months to get their vehicle repaired. Then I will see shops’ P&Ls and their profit often isn’t any higher now than last year’s to date. Each one of us must stop and just ask ourselves, “What are we trying to do here?” Is our goal to serve the customer in a noble way and fix wrecked cars to benefit society with little regard to profitability? For most collision repairers including myself, we want to serve the customer with a safe and properly repaired vehicle and give them the best customer experience we can. What’s the answer to “WHY do we do this?” Well, it’s really pretty simple, WE WANT THEIR MONEY and for them to send their friends and family to our shops. Last I checked, we are not subsidized by the government, and insurers aren’t sending us “that a boy” checks in thanks for taking care of their insureds. So, why are many not enjoying higher profits during this “Gold Rush” of wrecked cars? Let’s look at one of the greatest football coaches of all time, Vince Lombardi, who won five national championships with his teams. In July 1961, Vince Lombardi kicked off the first day of training camp for the 38 players of his Green Bay Packers football team. The prior season had ended in a heartbreaking loss to the Philadelphia Eagles after the Packers blew a lead in the 4th quarter of the NFL Championship Game. The players came in to start training camp for the new season fully expecting to immediately begin where they left off, planning to work on ways to advance their game and learn fancy new ways to win the championship. When they sat down and began, Vince Lombardi held up the ball and said, “Gentlemen, this is a football!” This became one of the all-time famous quotes by a coach in the professional football world.
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He then had everyone open their playbooks and start on page one, where they began to learn the fundamentals – blocking, tackling, throwing, catching, etc. That was clearly not what they expected as players who were at the top of their game. This hyperfocus on fundamentals allowed them to win the NFL Championship that season 37-0 against the New York Giants. He never coached a team with a losing season after that and never lost a playoff game again. If focusing on fundamentals can elevate a great football team to such heights, imagine what it can do for our collision shops and our employees’ lives. We can easily focus our time, energy, and money on the latest equipment, training, OEM certifications, ADAS, different management systems etc. There is not one thing wrong with any of these! Trouble is, we can quickly take our eye off the ball by NOT focusing on the fundamentals of profitability. Otherwise, we must “PROTECT THE HOUSE” no matter what! No matter what our level is in the collision repair business, just as in the game of football, we must never forget the fundamentals. As far as our profitability, here are 10 questions owners and managers must constantly be monitoring at least every month: 1. Are we spending at least one hour dissecting our profit & loss statement for a desired 20%+ net profit? 2. Do we have any parts credits that are more than two weeks old? 3. Are we keeping our accounts receivable total less than three days of our gross sales average? 4. Are we adjusting our Work in Process first thing the first day of every new month? 5. Are we tracking our average R.O. hours on a monthly graph to monitor our estimate quality? 6. Are we constantly asking for higher labor rates due to insurer labor rate suppression, along with having our door rate at least 25% higher than what insurers are paying? 7. Are we constantly studying the P-pages for new items we do but have never charged for? 8. Are we submitting degweb. org inquiries on a regular basis to improve estimating database labor times, along with studying the DEG database submitted inquiries? 9. Are we monitoring our paint department for at least 50% P&M G.P.? How about our cost of labor for 65% G.P. and parts department for a 30+% G.P. monthly? 10. Is our business growing at least 10-12% over the same month last year?
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GREG LOBSIGER
Greg Lobsiger has owned Loren’s Body Shop in Bluffton, Indiana, for over 23 years. He has been a member of Mike Anderson’s groups for ten years and had extensive lean manufacturing training.
EMAIL:
greg@lorensbodyshop.com
ARCHIVE:
fenderbender.com/lobsiger
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FenderBender 2023 Award Winner:
DAN MORRO With strong leadership talent and a community-minded business, Morrow Collision Center is in a league of its own By TODD KORTEMEIER
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M AT T SILFER PHOTOGRAPHY
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T
oward the end of his conversation with FenderBender, Dan Morrow ref lected on some final words of wisdom based on his decades of experience in collision repair. What the owner of Morrow Collision Center in Lincoln, Nebraska, settled on was a personal philosophy that was completely validated by all his preceding words. “I guess one thing that helps me as an owner is I'll turn any negative into a positive,” Morrow says. “It's just the way I've always been, the way I always think, if there's any kind of news or something that happens, and it's a negative, my mind immediately looks for the silver lining.” Two landmark moments in the history of Morrow’s business illustrate this point. In 2001, as a young collision repair professional, Morrow took the leap to becoming an owner and signed a lease on his new facility. Twenty days later, 9/11
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happened. Suddenly, Morrow was in his mid-20s navigating an upended global economy while also learning how to be a business owner. But that early challenge didn’t derail Morrow’s trajectory, aided by his brother and general manager Tom, into building one of Lincoln’s most successful body shops. Fast forward to 2020, and Morrow was putting the finishing touches on a brand-new, stateof-the-art facility, a move Morrow acknowledged was risky. Two weeks after the ribbon cutting, the COVID-19 pandemic took hold of the United States. It's a good thing Morrow is adept at finding a silver lining. His business has not only continued to thrive, but is a responsible, valued member of the Lincoln community and a place his employees love to work. It’s hard not to cite a Ted Lassolike positivity and steadfast belief that things will work out as major reasons for Morrow’s success. For the business he’s built, the ways he gives back, and the ways he pays it forward, Morrow is our choice for this year’s FenderBender Award.
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Congrats, Dan Morrow and
on this prestigious award!
We are thankful for your long-standing business. BE
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Meant to Be Morrow was thinking about cycle times before he even knew what they were. As a boy, he loved assembling car models, recalling Christmases rushing up to his room with his new prize and laying out all the pieces on his desk. An early adopter of OEM procedures, he paid close attention to the instructions and put the cars together as fast as he could. He even used his desk lamp to make the paint dry faster. One could say it was all meant to be. “I don't know why that was fun for me to do it like that,” says Morrow, now 46. “But I was basically doing, like, efficient auto collision repair up there on my desk, and I didn't even think about it.” Morrow’s mother recalls him making car noises at 6 months old, so cars have always been in his blood. He and his father restored Morrow’s first car, a 1957 Ford Fairlane purchased when he was 14. The body work they left to professionals and a shop that Morrow would eventually work at in high school. After graduating in 1995, he attended Southeast Community College in Milford, Nebraska, with some work experience already under his belt. He chose to stick with collision repair because he enjoyed technology and foresaw the advancing computerization of vehicles. After graduation, Morrow returned to work at his hometown body shop, where the owner was thinking of retiring and selling. A deal for Morrow to buy the shop didn’t work out, but an opportunity later arose to buy a shop in Lincoln. Morrow laughs now recalling the basic business plan he drew up to secure a bank loan of $3,000, knowing what little he did about owning a business. “I still have that, it was just two sheets with hardly any information on them,” says Morrow. “I still have that and it's just laughable. Looking at what I thought it was going to take, and so I didn't really have any business sense going in, but I knew how to work real hard.”
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Congratulations to Dan Morrow and the entire Morrow Collision Center team for their remarkable contributions to both our industry and the community around them.
We use PartsTrader all the time, every day. It's great for finding the best part prices and makes it really convenient to just put out a request for quotes and go about your day. y. Josh Unger Estimator Morrow Collision Center Lincoln, NE
visit partstrader.com for more info
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Spark of Inspiration
The essential collision part we can’t make.
Morrow says he doesn’t know how, but he and his brother Tom turned out to be naturally gifted at collision repair. Their business was successful—so successful that Morrow couldn’t help but think about growth. He’d seen body shops grow in stages: an expansion here, a new building there. But he wanted to skip all that. The shop was successful, but Morrow had the feeling they could be working smarter. In another late night of painting cars, when he was almost falling asleep standing up, Morrow decided to examine where the shop could be more efficient. He grabbed a piece of masking paper and started to jot down areas
where there was wasted time in the shop— time spent waiting in the parking lot, time spent waiting for a wash, and so on. “That's kind of where the whole thought process started,” recalls Morrow. “Tom and I started building a system. Basically, we spent the next eight years thinking about our processes, coming up with ideas on how to change and how to create the most perfect process that we could to basically cut out all the wasted time.” As Morrow says, it took some time to develop a process that eliminated as much wasted time as possible in the shop. But as it was being formed, it became clear just how
Dan Morrow, Morrow Collision, is the 2023 FenderBender Top Operator in the country and an FCCN Member.
Congrats to you from all of us.
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much time there was. And that process became the basis for how Morrow designed his new shop. Cars at Morrow’s enter and exit the shop through one door. But inside, there is ample space, five lanes wide for disassembly and techs working off parts carts to keep things open and moving. Cars spend little time sitting and waiting, but if they have to, they won’t disrupt the flow of the shop and won’t take up space sitting in a parking lot. “If a car gets disassembled and it's waiting for a suspension part or something, it can just sit there doesn't need to be moved,” explains Morrow. “We just keep lanes open past it. And so there are lifts strategically placed where cars can just sit in the shop and wait for parts; they never have to go outside. Technicians can keep busy and go right on to the next vehicle.”
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“WE SPENT THE NEXT EIGHT YEARS CREATING THE MOST PERFECT PROCESS WE COULD TO CUT OUT ALL THE WASTED TIME.” —Dan Morrow, owner, Morrow Collision Center
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Congratulations Dan Morrow and the Morrow Collision Center on winning the FenderBender Award.
Dan and his team embody excellence in the collision repair industry. The I-CAR Gold certified shop has grown in a little over 10 years to two locations with more than 20 employees who average 140 vehicle repairs monthly, making efficiency and quality top priorities. Thank you for choosing Spanesi equipment in your shops!
THE
F I NEST
AWARD A
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IN
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LLISION REP
Spanesi Americas Inc. 123 Ambassador Dr. Suite 107 Naperville, IL 60540 224-772-6374 n www.spanesi.us
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A Lincoln Landmark When Morrow was starting to plan for a new building, he did his homework. He looked at car counts for traffic and where the growing parts of the city were. In his studies, he learned that not that many people had heard of the shop. And that was just fine by Morrow.
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“We were able to keep it a secret that we were looking to build this big building for eight years,” Morrow says. “And it didn't start getting out until it was in the permit process through the city. And so finally people started to hear about it.” It was hard to miss the building when
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Dream Shop
Morrow says his team’s design “hit it out of the park.”
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Congratulations Dan, owner of Morrow Collision Center Thank you for using SATA equipment in your shop! We value your commitment and dedication to family, community and involvement in technical programs supporting the future of our industry. The exclusive independent distributor of SATA products in the US and Puerto Rico
Phone: 800-533-8016 www.satausa.com E-mail: satajet@satausa.com
SATA®air vision 5000 Breathing Protection System Supplied air respirator is independent from booth atmosphere – for ultimate safety, comfort and perfection. The SATA air vision 5000 is a loose fitting, positive pressure, supplied air respirator that is used in conjunction with Grade D breathable air filtration system as well as a carbon monoxide monitor. Whatever environment you are working in: Whether you want cooled or heated breathing air or simply looking for absolute safety from particle contamination – with the new add-on modules complementing the SATA air vision 5000 breathing protection system, you can be sure that your health and comfort are both efficiently catered to. Available from your local SATA distributor
The exclusive independent distributor of SATA products in the US and Puerto Rico
Phone: 800-533-8016 www.satausa.com E-mail: satajet@satausa.com
SATA, SATAjet and/or other SATA products referenced herein are either registered trademarks or trademarks of SATA GmbH & Co. KG in the U.S. and/or other countries.
Watch our YouTube informational video
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Keep Things Moving
Five disassembly lanes and parts carts help minimize delays.
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it opened. It covered more than 26,000 square feet, tilt-up concrete and glass. Morrow describes it as his “dream shop.” After more than three years of operations, Morrow has some tweaks in mind, but overall thinks, “We hit it out of the park on this building design.” One of the ways Morrow got the word out about the shop was through community involvement. The shop doesn’t have a public relations director—the position is known as the community impact director. And they keep the shop plenty busy.
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“We try to constantly think,” says Morrow, “what can we do here to get the community involved?” The events Morrow’s have hosted vary widely, from a “trunk or treat” event this past Halloween to an Easter egg hunt for kids in the spring. The turnouts have surprised even Morrow. He expected roughly 400 people last Halloween, but a review of the security camera footage showed approximately 1,300 people coming through the doors. That’s good marketing, showcasing the shop to that many potential customers. But
fenderbender.com
KUDOS TO MORROW COLLISION!
Dan Morrow, Owner
As Morrow Collision’s business partner for 21 years, PPG is proud to be part of your outstanding success. “We can always depend on support from PPG, whether it’s for training, troubleshooting or overall business advice.”
“As we process some 175 ROs a month, we rely heavily on Envirobase HP for its speed, color accuracy and ease of use.”
PERFORMANCE YOU CAN COUNT ON envirobase.com The PPG Logo, Envirobase and the Multiple Cubes Geometric Design are registered trademarks of PPG Industries Ohio, Inc. ©2023 PPG Industries, Inc. All rights reserved.
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“WE TRY TO CONSTANTLY THINK, ‘WHAT CAN WE DO HERE TO GET THE COMMUNITY INVOLVED?’” —Dan Morrow, owner, Morrow Collision Center
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the community obviously benefits as well. Besides the planned community events, the shop also has conference room space available to rent, and even hosts yoga on weekend mornings with light streaming in through the shop’s garage doors. “Anytime that an employee, or a friend of an employee, anybody wants to use the space for their birthday party or something, we usually don’t charge them,” says Morrow. “We just let them use that. I figure if they’re in here, you know, they’re going to be our customer after that.” Morrow’s belief that things ultimately work out has been justified over and over in his career. Most often that’s been due to talent and hard work—making things work out
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rather than hoping so. But a little luck along the way always helps. Morrow recalls one story from when he was starting his first shop, and he had just $3,000 to spend on a paint booth. Quotes he was getting were more like $40,000. Morrow’s then-wife was worried that they
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were in over their heads and it wasn’t going to work out. “I was just like, what, what are you talking about? We will figure this out. Everything will work out,” Morrow recalls. And sure enough, days later, a contact called who was selling his shop and looking
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to liquidate his equipment, including a paint booth. The price: $2,500. “That's exactly how everything has always fallen into place for us,” says Morrow. “And I don't think it's luck. I think it's looking for that silver lining and always keeping a positive attitude. And loving what you do.”
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2023 Award Runner-Up:
AARON GLAS
Aaron Glaser has worked tirelessly to uphold the family business By KACEY FREDERICK
Photos Courtesy Of A ARON GL ASER
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aking things that are broken whole again; carrying the family name; these are the things that motivate Aaron Glaser, the owner of Glaser’s Collision Centers in Louisville, Kentucky. Growing up and watching his parents work hard and make sacrifices to build their auto shop, Glaser’s passion for working with vehicles only became stronger as his parents’ business evolved from a general automotive shop into the collision repair facility it is today. As a runner-up for this year’s FenderBender award, Glaser gave us a look into how he became the owner of what is now a multi-location staple of the Louisville area.
Natural-Born Technician Glaser’s father grew up in the home of a construction worker but loved working on cars and decided to open his shop. He performed most of the mechanical and bodywork, while Glaser’s mother did interior work and overlooked finances. As a child growing up in the shop, Glaser’s affinity for mechanical work started from an early age. “When I was a kid hanging out in the shop, I took my bike apart and painted it. Then some of the neighborhood kids wanted their bikes painted, so–hell, I was probably 10, 12 years old, I was painting bicycles for my buddies,” Glaser remembers. Soon after, at 14 years old, Glaser’s father had him work in one of the paint booths in his shop, doing custom paintwork. Glaser
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genuinely enjoyed the work he was doing in the shop and felt a sense of accomplishment from the final product. “Taking something that's ugly and, you know, putting time and effort into it and having something beautiful when you're done–it just always appealed to me,” Glaser says. After graduating high school, Glaser earned a degree in business and returned to work in the family business to help them as they expanded, working alongside his parents until around four years ago when they retired. As of now, Glaser’s Collision Centers has expanded to four locations, placed around the Louisville area in what Glaser describes as a diamond shape, making them a known name in the local market.
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Learning to Be a Leader As Glaser has played a more dominant role within his family’s business, his job has become less about solely fixing cars, but also about making sure everything is set in place to make the business run smoothly. From working with his staff to recruiting new team members to communicating with insurance companies and customers, it’s become more than just the cars, but also about all the people involved with the process of repairing them. “Whether it's training, whether it's educating, motivating, or trying to build the culture, my job is to help make my people successful,” Glaser explains. “If I do that, we all win.” This has been a constant learning ex-
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SER perience for Glaser as he always strives to improve as a shop owner. He believes that by creating a positive and encouraging work environment, people will enjoy their time there and put in a genuine effort to help the business succeed. When people feel appreciated, they work harder. One way Glaser shows support is by investing in educating his staff on changes that happen in the shop. Rather than bringing in a new expensive piece of equipment and leaving his technicians to figure it out, he will arrange for representatives from the manufacturer to come in and demonstrate how the new machine functions. In an effort to constantly learn how to better serve his team and to improve, Glaser
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and the managers and leaders of his stores will come together to network with other shops to learn from them and share ideas as well. His shops also implement mentorships between senior techs and entry-level techs to help them confidently enter their new career. Part of being a shop owner and supporting his team is realizing the effect his own attitude can have on his team and working to always be a source of positivity within his shop, regardless of what he may be having to handle outside of it.
Providing for the Next Generation As he continues to strive for improvement and to cultivate a great work environment, Glaser is motivated by upholding the legacy
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of his parents’ name that hangs on the sign outside every one of his stores as he remembers the work his parents put into creating the business. “Growing up and seeing that and watching that, it just, you know, it makes you want to—or made me at least—want to do the same thing, you know,” Glaser says. “[I] want to make them proud and continue to do the things they’ve done.” As his oldest son comes out of high school and begins to work with the family business, Glaser currently plans for his business to remain in the Louisville area but hopes to provide the best possible foundation for the third generation of Glaser’s Collision Centers.
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2023 Award Runner-Up:
BRIAN MON This humble shop owner has built his business the right way over four decades By LINDSEY GAINER
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Photos Courtesy Of BRIAN MONROE
or Brian Monroe, owner of Monroe Brothers Paint & Body Shop Inc. in Carthage, Texas, being named the runner-up for the FenderBender Award is a true honor. “I've read the magazines for several years now,” he says, “and I've watched other people's success. Just knowing that a lot of them started from humble beginnings has always impressed me. To be chosen to be interviewed among them is a great honor.” Monroe’s own beginnings were certainly humble—he started working on cars in his father’s one-bay hobby shop in 1984 when he was just 17 years old. But what started as a side job soon became much more…and has grown into something he never could have imagined. “Because of Brian’s kindness, fairness, and people skills, what began as side work grew to the point it quickly become fulltime,” says Monroe’s brother and business partner Brandon Monroe. “Even though I was very young and most certainly in the way, he always let me come around. I would not be the man I am today without the love and generosity of my brother.” And the feeling is very mutual. Brian credits Brandon with having “bigger dreams” than he did, and helping him build Monroe Brothers into what it is today. “Brandon joined me in 2004 and we’ve been partners ever since,” he says. “We had two buildings and several employees at that point, but he had bigger dreams than I did. In a way, he could see things that I couldn't.”
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The two have since expanded the business into six buildings that total 30,000 square feet and employ between 20 and 30 people at any given time. Alongside collision repair, Monroe Brothers also does their own calibrations, alignments, and glass repair through two highly successful sister companies. They’ve won numerous awards for their services, including many “best of” community recognitions. In the last 15 years, sales have increased an impressive 600 percent. Much of the growth, says Monroe, was born of necessity. But when you speak to him, it’s clear that his success is also a direct result of the way he treats other people. He’s a kind, generous man beloved by his family and customers alike. When asked what was most important to him in business, he didn’t hesitate—“it’s building lasting relationships with customers.” “We are a small town, and I know so many of the people who live here. We want to build meaningful relationships that go beyond a business relationship.” His commitment to the community extends beyond work, too—he’s an active member of his church and Lions Club, and volunteers often for local events. “This business has grown over the years because of Brian’s dedication to doing the best job possible and treating his customers like he appreciates them,” says Monroe’s sister-in-law and colleague Stephanie Monroe. “Monroe Brothers has beyond loyal customers and we are gaining new ones every day. I have seen him take out of his own
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pocket for family, for customers, for his employees. He makes this crazy hectic industry a joy to be around and work in.” “My father shows every person who walks through the door a smile and kind welcome…when they leave they feel like a friend,” agrees Monroe’s oldest son Brad Monroe. “He always makes time for people. He’s made a lot of friends and helped a lot of people over the years.” Furthermore, says Brad, his father has always shown him what it means to be a leader and hard worker by example. “As a business owner, he often humbles himself and does jobs nobody wants to do,” he continued. “My father would say, ‘A good leader is not only able but willing to do some work themselves.’ He would stay late, show up early, work through lunch, and work all night some nights—anything to get the car back to its owner, and never short on quality. He’s told me ‘Good work that takes too long will lose customers, and fast work that’s not good will lose them, too. Success is good, quality work done fast.’” A man of faith, Monroe is quick to credit his success to God’s provision, acknowledging that he never could have achieved what he has on his own. “And I’ve had some really good people over the years, too,” he added, many of whom he or his senior techs have trained themselves. “He is a tremendous teacher, and because of that, we have been able to bring many people into our business who have never been in the industry before,” said Stephanie. “He has always led us to work as a team, and we
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NROE pride ourselves on the family of employees we have become.” It’s been nearly 40 years now since Monroe first started his business, but he still loves working on cars as much as he did that first day. The cars, and the everchanging nature of the industry, keep him excited to go to work every day. “I really have enjoyed this business. I've changed roles several times. I've been the estimator, I've been the painter, I've been the body guy, I've been the glass guy. And that's what really keeps it interesting for me, is to change things up every once in a while, let somebody else have my role.” If he could give other shop owners just one piece of advice, it’d be to never give up. Success, says Monroe, requires perseverance. “Don’t give up when it gets rough. I know that over the years, I’ve thrown my hands up several times. But I’ve never given up.” Monroe acknowledges that the industry has faced unprecedented challenges recently between technician shortages and reimbursement difficulties…but he truly believes there’s profit to be had for those who persevere. “I think there's a prize to be won in the end, and we will actually one day make our businesses even more lucrative than they are right now. And it all begins with training and keeping great technicians.” Invest in your business and employees, treat your customers like family, and always look for ways to improve, grow, and exceed expectations—that’s the Monroe Brothers way!
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Vertically Integrated Monroe Brothers has six buildings and does its own calibrations, alignments, and glass repair through its two sister companies.
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LEARN
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GROW
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WORK SMARTER
S T R A T E G Y
THE SOP
BENEFITS THAT SPEAK TO GENERATIONS Y AND Z
Get creative and go beyond the typical benefit package
PCESS609 / ISTOCK / GETTY IMAGES PLUS
By C AROL BADAR ACCO PADGET T
A MEAT LOTTERY. Time off, with or without pay. Streaming channel subscriptions. A membership to Sam’s Club. Are these employee benefits? Absolutely. And they’re helping quick lube business owners grab hold of the everelusive employee of 2023. The idea: “Find something your employees like and benefit from, and use it to your advantage,” states Penny Yountz, a Statesville, North Carolina, auto industry benefits expert with Employers Advantage LLC, an HR company for small businesses. Historically, for most workers that included benefits that helped them take care of their families—things like medical, dental, and vision insurance, short-term and long-term disability and other core offerings. For younger employees today, though, the benefits of old lack luster. Instead,
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Yountz says they’re oftentimes in search of “work/life balance” options, a workplace term coined by the latest generations.
The Needs of Modern-Day Employees “They want the ability and freedom to live their best life now,” Yountz says. “That may mean the f lexibility to modify start and stop times. DoorDash or TV subscriptions—they’re interested in having employers pay for these things or provide accounts. If they’re under the age of 26, they’re still on their parents’ medical plan, so medical, dental, and vision is the least of their concerns.” It’s a good thing, because many momand-pops in the quick lube arena are small enough that they can’t afford to offer health insurance anyway. Where that’s the case, Yountz says employers might consider offering a stipend
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so employees can purchase insurance on their own. “In the 5-10 employee range,” she notes, “this has become more popular.” It’s mom-and-pop auto shop operations that Yountz enjoys focusing on most. She finds that there are always creative, highly useful things of value that small shop owners can offer their employees, if they’re willing to investigate a bit. “So, I tell my clients, ‘Ask your employees,’” Yountz advises. “So many companies hesitate asking questions because they’re scared of the answers. But they can get really good ideas of things that are valuable.”
Eat and Learn Food, Yountz has found, is a perk that’s particularly high on the list of prime benefits in many employees’ minds. One small company she works with, realizing how much its employees loved any type of food benefits, put together an ingenious meat lottery. When grocery prices started going up, the mom-and-pop went to a local butcher, got a cow, and instituted the monthly event. “One month the lottery was for hamburgers, and T-bone steaks another,” Yountz describes. Education, too, is a highly valued benefit among younger workers today, she finds, although they tend to seek it in different forms than previous generations. For example, small shops might offer to pay for
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training that keeps employees up to date, and then reward the employee once the course is complete. The reward, she says, doesn’t necessarily have to be more money. “I have one client who has created this culture with peg boards at everybody’s station, and you get a pin every time you complete training,” Yountz says. “It promotes pride and allows people to talk about what they did and how they got the pin. In the automotive world, there are so many different kinds of training – hydraulics, pneumatics, etc.”
Subscriptions and Memberships “Several years ago, a client wanted to add some type of pet insurance to their benefits offering,” Yountz shares. “But like I said, sometimes there’s hesitation to ask employees for their opinions. So, I asked this client if they had a population who would really want that.” When the company finally asked, only two out of 50 were even interested in pet
insurance. Instead, what they wanted was Sam’s Club membership. “Get what employees want and need,” Yountz encourages. “If you offer the wrong things, it’s a de-motivator. Show them you care by offering the right things that they want.” Streaming channel and other TV service subscriptions go over big, as well, she notes.
it’s something that everybody is going to want and need, at some point. Among Yountz’s quick lube clients, a worker’s ability to take time off is held sacrosanct. “It’s an expectation for most places,” as she puts it, and she strongly suggests: “If an employer can’t provide time off with pay, at least have options to take it off without pay, and let employees know it’s ok. That’s worth its weight in gold.”
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“I think it’s a given,” Yountz says. “If I went to work for at an oil and lube, I’d expect a discount when I need the services. That seems like a no-brainer—discount your employees and their immediate families using the services.” And she adds, “Of course, you would have to define ‘immediate family.’ But if we take pride in our workplace, we want our family to come and know they’re taken care of.” Time off is another no-brainer, because
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This one might be part of the reason why some employers balk at asking employees what they would value most in terms of benefits. But it’s certainly worth considering, Yountz says. Encouraging owners of small shops to think boldly about all the possibilities. “Know your workforce and the individuals that are working for you—and their circumstances,” she says. “And then you can do more customized plans.”
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CUSTOMER SERVICE
DIFFERENT CUSTOMERS, DIFFERENT APPROACHES
Take a tailored approach to customer service and learn to work with all types
ANY SHOP OWNER will tell you that the customers they serve are as different as the cars they bring in for repair. Some are friendly, some are not; some are knowledgeable about cars while others have very little understanding of their vehicle; some are patient, and some are in a hurry. They might be there for a full restoration or simply a scratch. They may be shopping around for the best price or only care about the quality of your work. The potential mix of per-
By L I N D S E Y G A I N E R
September 2023
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sonalities and situations is endless, when you start thinking about it. In order to run a successful business and work effectively with all the different kinds of customers you encounter on a daily basis, the approach you take in your communication matters, says Kimberly Pope, etiquette expert and founder & CEO of The Pope Institute. “Every touchpoint you have with a customer has the potential to enhance or hurt your brand,” she says. “It takes three-to-seven seconds for someone to form an impression, the majority of which is based on how polished and polite you are.” Maya Angelou said it best, in Pope’s opinion: “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
Understanding Your Customers Like any collision shop, Bob Sloan, owner of Sloan Product in North Canton, Ohio, has many different “types” of customers who walk through his door. The key to handling them all, he says, is flexibility. “You have to be a chameleon when it comes to handling all different types of people,” Sloan shared. “Your personality has to be able to mesh with all the different personalities of the world. You have to be able to take things with a grain of salt and be patient with some people…and you have to be able to adapt, being adaptable is key.” The longer he’s in business, the better Sloan gets at tailoring his approach depending on the situation. There’s the cash buyer, for example, who’s always looking for a freebie or discount, he says, and of course the “shopper” who’s getting estimates from several places around town. In Sloan’s experience, these customers are often more concerned with getting a low price than paying for quality craftsmanship. “In the early years of growing my business, I would often discount my work just to get jobs from these types of customers, even when it didn’t make financial sense,” he recalled. “That was a learning curve. Now, I let those types of customers go down the road to the next shop if they want. I would rather shut the lights off early on Friday than end up paying out of my own pocket for their repairs. I respectfully tell people that if they’re shopping a price, I’m not their guy — our paint quality and workmanship are the reason people come to us.” Remember what Benjamin Franklin once said, advises Sloan: “The bitterness of poor
September 2023
quality remains long after the sweetness of a low price is long forgotten.” Taking this approach to prioritize quality over price has paid off for Sloan, as his “tried and true” customer base steadily continues to grow. “On the other end of the spectrum from the price shoppers, you have collectors who understand the craftsmanship and art form of a high-quality job and will wait to get in the door no matter how long it takes. My customers who bring me their custom or restoration projects are currently waiting in line up to a year or longer to get in.” Those same customers, he says, bring in their daily drivers for both annual maintenance — like detailing, rustproofing before winter, or scratchand-dent repair — and collision/insurance work. These types of “tried-and-true” clients, as Sloan calls them, are the ones who will sustain the business long term and bring in more new customers through word-of-mouth referrals.
How to Communicate Effectively with Everyone Regardless of the “type” of customer you’re dealing with, the rules of effective communication remain the same across the board, says Pope. “Think less about customer service being a thing you provide,” she says, “and more about being of service to your customer, having a heart to serve them.” She advises business owners to keep the following tips in mind when engaging with a customer: Always give your customers a warm greeting; it sets the tone for the interaction. This should be done intentionally, not just as a formality. Be an active listener; remember the phrase, “two ears to listen more, one mouth to speak less.” Be fully present in the moment when you engage a customer. How you say things can carry more weight than what you actually say; be mindful of your delivery. And don’t forget…a smile and being kind can go a long way! Additionally, Sloan adds, being open and honest with your customers so they clearly understand the repair process, timeline, and project outcome is imperative, too. “The best way to understand and communicate with your customers is to explain how the repair process and/or different types of repairs work and what’s involved…keep your clients informed throughout the process, every step of the way, until the repairs are complete.”
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Tips on Handling a Difficult Customer Every shop encounters difficult customers from time to time — it’s inevitable when you’re working with such a wide variety of personalities. When you encounter such a person, Pope says, it’s incredibly important to handle the situation in a considerate and respectful way. Keep calm and do the following if things start to get tense: • Consider others around you. If it’s possible to redirect the conversation to a separate nearby office, do so. This will minimize the situation from being on display for others not involved in the situation, and allow other employees to focus on servicing other customers with minimal distraction. • Consider the customer’s perspective. Listen intently to the customer and keep in mind that a difficult customer is a customer frustrated with a “situation” — not you. Don’t take it personally. Your goal is to help the customer resolve the situation. • Consider how you can defuse the situation. This is where your body language and tone are important. Controlling your breathing, having a welcoming posture (e.g. no folded arms), and a calm tone can go a long way in bringing calm in that moment and potentially having the customer follow your lead and regain their composure so you can have a less tense, more focused conversation. • Respect the customer’s concerns and find a way to address them — not dismiss them. Are there any areas for compromise where the customer gets some resolution and you can regain a satisfied customer? Remember, it’s about resolving the situation. • Be honest. Be honest and authentic in your engagement with the customer. And be honest in what’s feasible to accommodate them. Then follow-through with that commitment.
The Bottom Line Just as the way you approach a repair depends on the make and model of the vehicle you’re working on, different types of customers require different approaches, too. The same principles of effective communication apply to them all, though. The better you’re able to communicate and build relationships with a wide variety of people, the more successful your business will be. “Remember, it only takes a second to hurt a reputation that likely took years to build,” cautions Pope. Always be mindful of your approach!
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STRATEGY
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KEEPING YOUR BOOKS—BETTER
A guide to QuickBooks and bookkeeping for novices By C AROL BADAR ACCO PADGET T
September 2023
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The Backstory When Kildal took her first accounting class, she was hooked. So, she went straight to work as a bookkeeper for a silent partner in the auto repair industry.
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M O S T S H O P O W N E R S get into the business to service cars for a living, either directly or indirectly, not to sit behind a computer and rack their brains trying to do the books. So that’s where Stacy Kildal comes in. The accounting-award-winning bookkeeper and owner of Kildal Services LLC in White Lake, Michigan, has made it her business to help auto shops succeed—without having to worry about their books in the process.
Twenty years later, she still does the books for her first auto repair client, plus a whole fleet more. From Kildal’s experience, shop owners can usually manage their businesses best and keep them running at top speed by taking their hands off the wheel when it comes to bookkeeping. “People don’t start their shops to do bankroll reconciliations,” she states. “So I tell them to find someone to do the books, because you didn’t start your business to do that.” She adds, “I don’t cut my hair. I find someone to do it.” One of the key things Kildal says professional bookkeepers can help shops do—saving them money and headaches in the process—is stay on top of sales tax and make sure it’s filed and paid on time. This service alone is probably more highly prized among shop owners than a 1964 Ford Mustang.
The Challenge But what if a shop owner is just getting started and can’t afford to hire a professional bookkeeper? “If you feel like you don’t have the budget, an Excel spreadsheet is free and it works,” Kildal shares. “At least you can track with just that … and it makes tax time easier at the end of the year.” No matter the tool a shop owner decides to use, Kildal stresses, “(Sound bookkeeping is) really important when figuring out your costs, (such as) what percentage of income do I want parts to be versus labor? We want to see 1:1, parts and labor about the same.” Smart business practices like Kildal describes simply aren’t second nature for most people, though. “There’s a stat somewhere that shows most small businesses don’t make it past three years. But once you have a good (bookkeeping) system set up for success, you can make decisions based on actual data and not just on feelings,” she notes. Bottom line: if shop owners want to succeed and grow, they’ll need to see where their sales are actually coming from. So as soon as a shop owner is able, Kildal
September 2023
suggests, “Budget in somebody to do this stuff for you so you don’t have to worry.”
The Solution Kildal advises about the basics necessary to make an auto shop run like a champ: “You’re going to want good shop software—a really good foundation with industry-specific software.” For Kildal, a winning accounting system includes QuickBooks, her chosen bookkeeping tool for which she is designated an Advanced Certified QuickBooks ProAdvisor. “For quick lubes, you want to know where your customers are coming from,” she notes. “[And] with QuickBooks, you can see where your customers found you.” Another benefit of QuickBooks software is that it has a full auto repair shop track that takes into account all types of work, even including things like walk-ins and contracts shops set up with local school districts, for example. Drawing on insights made possible by the software tool, Kildal says shop owners can also determine what buckets to put their marketing money into for the greatest returns. What if the owner of an established shop currently has accounting and bookkeeping systems in place, but they aren’t sure they’re the best they can be? “I would say find someone who can come in … set up a back office and make the workflow and practices the best they can be,” Kildal suggests. She is regularly asked to look over shops’ existing accounting systems to make sure they’re still up to the task of helping businesses grow. “A Quick Review is what we call it, and we do it often,” she says of her company’s business analysis services. She uses QuickBooks as part of her process, and it helps her determine the smartest marketing moves a company can make. Of chief concern: “It’s really important to make sure their cost of goods and margins are where they want them to be,” Kildal notes. “What’s the revenue versus parts and labor?” In other words: as a shop owner, you
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must make sure you’re making money, she stresses. And she advises shop owners to up the ante and find someone who can help with search engine optimization (SEO) and marketing to boot. (Kildal sticks to her bookkeeping forte—practicing what she preaches—and has an experienced pro on her team to handle the SEO.)
The Aftermath Whatever road shop owners take, the longterm business impact of putting a sound accounting and bookkeeping program in place is probably obvious. “They’re going to be successful,” Kildal states. “I look at my job as putting puzzle pieces together,” she adds. “[I’m looking for things like] are you doing things to the best of your ability? Can we get your parts cost down? Your labor costs down? What are local dealerships charging, and let’s get your costs in line.” An auto shop can best track these costs and answer these questions with a really good foundation, Kildal reiterates, with industry-specific software. “Whether or not it connects to QuickBooks is not a big deal,” she notes. “You [simply] want to have a good accounting software, regardless of what that is.”
The Takeaway At the end of the day, Kildal shares this advice, drawing from her years of helping auto service businesses run at peak performance: “Don’t do your own books. Get it done correctly. And if you do it early, it will pay off.” This same wisdom has benefitted Kildal and her own family, where she cut her teeth helping her dad do payroll for his business in the 1980s. “For my 19th birthday I asked for a filing cabinet!” the pro bookkeeper looks back and laughs. From the very beginning, the woman named among CPA Practice Advisor magazine’s Most Powerful Women in Accounting (six years in a row) was setting up a business for success.
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STRATEGY
ADAPT
INTELLIGENT SERVICE: WHAT AI COULD LOOK LIKE IN AUTOMOTIVE REPAIR
A recent AAPEX webinar looks at the technology disrupting training and development. By K A C E Y F R E D E R I C K
A S D I S C U S S I O N S A R I S E surrounding the use of artificial intelligence (AI) in different work fields, the question remains of what that could look like in the automotive industry. A recent AAPEX webinar, led by Predii Founder and CEO Tilak Kasturi and Vice President of Sales & Business Development Mark Seng, dives straight into how it can be best used and what its introduction into the industry will look like.
How Can AI Be Used in the Automotive Field? Seng points out that while most people utilize AI in their day-to-day lives, the way it functions in the automotive industry will look a little different. Similar to how AI is meant to mimic a human, AI for the auto industry would be built to function as a service advisor. Seng uses the example of a driver telling an AI system that he is unable to call someone on the phone while driving. An AI system specialized in automotive issues could pick up on the phrases “call” and “driving” and suggest a Bluetooth error. Even though shops that have been in operation for a few years have likely seen a multitude of different problems and scenarios come through their doors, every diagnosis and solution is not remembered by technicians. AI can be used to leverage historical data from past repair orders and can even be used to help bring inexperienced technicians up to speed with new kinds of jobs. As vehicles become more complex, AI can be a useful tool to train new staff. Shops frequently experience customers that are inclined to put off maintenance. If a customer agrees to share TeleDiagnostic data with the shop, the shop can provide a more
September 2023
accurate picture of the state their vehicle is in and will have personalized data from the vehicle itself when it’s time to perform maintenance. In such a case, it could be possible for a driver to be unaware of a potential issue with their vehicle while the AI picks up diagnostic codes that communicate problems to a shop before any warning lights appear on the vehicle’s dashboard. While consumers are often concerned about having extra work performed on their vehicles, a shop being able to provide data on the issue can help the customer feel more confident in their choice. It also helps a shop prepare itself before the problem becomes worse. If an issue is detected and communicated to the shop through AI, any parts or supplies needed can be ordered before the customer even walks into the store.
How Does it Work, and How Will it Unfold? Katsuri opens his half by explaining generative AI as an AI system that can generate original content based on data and improves as it gains feedback and responses. While generative AI has been able to demonstrate success, in the lack of sufficient data, inaccurate, contradictory, and sometimes flatly false responses can be generated. This can be useful for tasks such as creating images or audio, but in a technical field like automotive repair, precautions must be taken to avoid this. The type of AI in the automotive industry would be able to intelligently answer and respond to questions through the simultaneous use of different data and sources of
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knowledge that will be applied to a specific make and model of a vehicle. Though the use of AI in the auto industry has been studied for years, programs such as Chat GPT have only been around for a little under a year, and it’s a technology that is steadily evolving. As it unfolds in the auto industry specifically, it will likely take place through four stages. The first immediate stage will involve AI being introduced to an organization, mainly in applicable workflow tasks. The second stage looks at the short-term implementation of AI, which will have trials of organizations experimenting with different AI systems to find one that will keep the questions received and answers generated by the organization’s system safe and secure. In the mid-term, organizations and businesses can gather enough data from AI that can be used to improve workflows and applications, and for an organization to even create its own generative AI. Long-term, automotive AI will be brought to the consumer, providing personalized data and services unique to them and their vehicle’s needs. However, for AI to be used in the industry to its full capabilities, regulations and standards are essential. Industry leaders such as the Auto Care Association and the Automotive Service Association have become involved in discussions surrounding AI’s use in the field for precisely this reason. The path toward AI being used in the auto industry is undoubtedly still a long one. But with it already being used in many segments, such as AI-generated estimates for collision repair, it may be in a business’s best interest to learn how to leverage it for their work.
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STRATEGY
TECH+TOOLS
ADOBESTOCK
WHEN IS THE RIGHT TIME TO INSTALL AN EV CHARGER?
What to keep in mind when thinking about installing an EV charger in your shop
E A R L I E R T H I S S U M M E R , Tesla announced a major deal with both Ford and General Motors allowing electric vehicles built by the legacy automakers to access the EV manufacturer’s network of 17,000 fastcharging ports across the country. It’s a big step for Ford and GM, and it may also have some major ramifications
By N O A H B R O W N
September 2023
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throughout the auto industry. Tesla’s charging network is the largest DC Fast Charge system in the country, and while several other companies such as ChargePoint have worked to rival Tesla, other automakers may follow Ford and GM’s lead and make a deal to join Tesla. The charging landscape looks very different from just a few years ago, and as charging stations become more universally accessible, they’re becoming more of a sound bet for collision shops to invest in. “I’d be more inclined to get one early on, even if you have very few cars coming in,” says Darrell Amberson, president of Minnesota-based LaMettry’s Collision. “As soon as you start to fix one or two EVs, it makes sense to have one in your shop.” More EVs are on the road than ever before, which means the odds have never been better that you’ll see one roll into your shop. When that happens, having an EV charger can help that repair go as smoothly as possible.
Budgeting for a Charger Data from Hertz shows there are around 1.7 million EVs on U.S. roads right now. While that’s still less than 1 percent of the total number of vehicles on the road, it is more than quadruple the number that were on the road just five years ago. Amberson says it’s still very important to keep track of what makes of EVs are coming into your shop when deciding what charger to purchase – even though OEMs such as Ford and GM will be able to use Tesla chargers in 2024, there is still a significant lack of cross-compatibility between Tesla’s chargers and other EVs. Tesla’s share of the EV market has taken a significant dip since the start of 2022, but it still dominates the scene with around 50 percent market share. Until more OEMs join Tesla’s network or some other push for standardized EV chargers takes hold, the charger you pick should accurately reflect the kinds of vehicles your shop works on. “Things are evolving, but at this point it’s still a concern,” Amberson says. “We
September 2023
have primarily Tesla charging stations in our shops because all our shops are Tesla-certified.” Once your shop determines an EV charger makes sense, one major benefit is the cost. Chargers are fairly affordable, though the amount your shop will pay can vary depending on the type of charger selected. Level 2 chargers, which the U.S. Department of Transportation says can bring a BEV to 80 percent charge from empty in as little as four hours, can cost anywhere from $1,000 to $20,000 when factoring in installation costs. DC fast chargers, which can charge vehicle’s battery significantly faster, cost much more. USDOT estimates a shop will have to drop anywhere from $14,000 to $91,000 for one fast charger. Amberson says some of that cost will be recuperated by enabling your shop to work on more EVs. He also says some of the cost to charge a vehicle can be passed on to insurance during a repair. “I’m not going to tell you that an insurance company is going to pay for it in every circumstance, but you can make a very good argument for charging the insurance company for charging the vehicle to at least a certain level as a cost of the repair,” he says. Installing chargers outside your shop and having customers or passers-by pay to park and charge their vehicles can be viable if traffic is strong enough.
In-Shop Logistics Once your shop makes the decision to install an EV charger, Amberson says there are several factors to take into account when deciding where to put it. “Obviously, there are the questions of space and convenience, as well as how many cars you expect to be charging a day,” Amberson says. “Another is power. You need to have adequate power and sufficient wiring going to a charging station to be able to run it.” Charging an EV is a necessary part of the repair process. Though specific rules will vary between different OEMs, most have some requirement about bringing a
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vehicle to a certain level of charge during the repair process. Many require a certain level of power to run certain procedures and tests. There are some ways to charge a vehicle short of a charging station, but many manufacturers recommend or require that their vehicles be brought up to a certain point of charge during a repair and for certain procedures. Because of those requirements, if your shop works on EVs in any capacity, having a charger makes sense. Amberson’s shops will try to find ways to charge a vehicle throughout its repair process and do it in a way where it won’t be in the way of other shop operations. “Ideally, it’ll be staged for the next step. For instance, if it’s come out of the body tech stall and is getting ready to go in for paint but the paint department isn’t quite ready for it, that’s a good time. Maybe the car is assembled but the detailers aren’t ready, or the final safety check isn’t ready,” Amberson says. If a vehicle is going to stay in your shop for multiple days, Amberson says there are considerations for charging overnight. Different manufacturers have different requirements, but if there’s a damaged battery, it’s best not to charge the vehicle after hours. “You don’t want to heat it up and have it start on fire,” Amberson says. “Especially when you’re not there.”
Expect Expansion If your shop has the space and clientele to support one, having an EV charger can be a good option to help speed along EV repairs and attract more electrified business. EVs still make up less than 1 percent of vehicles on the road today, but their expansion has been rapid. Amberson says getting in now can help save your shop in the future. “We don’t know if some of the specific forecasts are accurate, but certainly it’s very safe to say that EVs as a percentage of the number of cars sold today are going to increase considerably going forward,” he says. “We know that we’re going to have more and more EVs.”
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COLUMNS
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A Change of Space
Optimize workflow despite a compromised shop layout fects a shop’s production. An optimized shop layout of the shop results in smoother workflow and quicker production times. We would all love a brand-new shop designed and laid out for the specific purpose of collision repair, but that’s not a reality for most established shops. What do you do if space is a challenge for your shop? I know this has been a huge issue for my shop. As we grow, it is one of the main factors I feel that is holding my shop back. My shop size, dimensions, and layout are not ideal for a body shop. I’ve struggled with shop flow and production for years. My building is long and narrow with six pillars that run through it. If vehicles are too long, we cannot drive them in and put them in a regular bay, because then we block the drive-through of the shop. We are forced to park them horizontally across two bays if the vehicles are too long. That gives you a bit of insight into the space challenge we are dealing with. Not to mention we only have a 5,000 sq ft building, which includes our paint booth. To grow the shop, I have really had to think about our shop flow and how it affects our production. One of the first things I started with was getting rid of things I didn’t need. I have gotten rid of anything that we are not directly using for vehicle repairs. If it’s one of my own project vehicles that we are not currently working on, then the vehicle is not at the shop. Scrap metal gets taken to recycling every week. Our trash gets picked up twice a week instead of once a week. We do that because we are constantly throwing things out. The new parts get in, we mirror match them and then throw the old parts out. Yes, we throw the old parts out before we finish the vehicle. Yes, there is a possibility that we throw something out that we needed, but if that happens the issue isn’t that we threw parts out before we finished the vehicle; the issue is in a breakdown of our process. If we throw something out that still had a bracket or a part on it, then the issue is at teardown/ blueprinting. If the part we received is incorrect and we already threw the old part out, then the issue was during the mirror-matching process. If you have a ton of old scrap parts and all the other junk that piles up in a shop, it’s going to directly affect your shop flow—and in return, affect your shop production. One of the other items we had to do to help with shop flow was to get our parts in order, and we did that with parts carts. Now keep in mind, we didn’t have space for 25-30 parts carts. We were fitting them wherever we could. What we finally did was sacrifice some space outside. We had an area outside at the back of our shop that is gated that could hold five vehicles, and the area was covered. We gave up three of those spaces, enclosed the area, and put in a garage door so
September 2023
we could store out parts carts there. Is it ideal? No, but it has made a huge difference. All the parts carts are now in one area, and my techs find the one they need to pull faster. I need my techs working on vehicles, not searching for parts carts and parts. I also bit the bullet and hired a parts person/overall helper to help do all the little tasks that need to be done, such as picking up tires, taking vehicles to alignment, washing vehicles, and anything else we need help with. If I had a shop that wasn’t so spacechallenged and was laid out better, I wouldn’t need my parts tech. But having the tech has made a huge difference. The main thing I have the tech focus on besides mirror-matching parts is vehicle movements. I let him know what vehicles we are working on each day, what vehicles need to be made accessible, and what vehicles are leaving. That way, when a tech is done with a vehicle, the next vehicle is already accessible and ready to be pulled into the shop. I don’t waste a tech’s time moving vehicles around in our gated lot, and the tech is able to keep working on a vehicle. We all know that we need hands on vehicles, not just warm bodies in a shop. Continuing to work on these things has helped me grow my shop to where we are today, but I’ve recently had to make a decision about our shop layout. We have pretty much maxed out what we can produce in our space with the constraints that we have. There just isn’t anything else we can tweak besides the pillar situation. I have come to terms with the six pillars and know if I want to produce $3-4 million in this space, I am going to have to move the pillars. I don’t have the funds to tear down my building and build a brand-new shop. I don’t want to move, because I own the building and land. So, I am spending $40,000 to remove the pillars in the middle of our shop and run steel beams to reinforce everything. At first, I didn’t think spending the money was going to make a huge difference in our flow and production. But after much contemplation, I decided to move forward with it. I don’t know what my return on my investment will be— it’s a gamble. I have projections of what I think it will do for me, but there is no way to really know unless I just do it. And that’s what I’ve done. I’m gambling on myself that I can move these pillars and will be able to tweak the shop flow enough to be able to produce more. Ultimately, when thinking about my shop flow and all of its challenges, I could have just let it be. But that’s not how I run things. I know my techs and my shop have the ability to produce $3-4 million out of this space. I just have to continue to learn, tweak, and sometimes spend some money to give them the ability to see the numbers I know they are capable of.
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TIFFANY MENEFEE
has more than 20 years experience in the insurance business and now runs a collision repair shop in El Paso, Texas.
EMAIL:
tiffanykaymenefee@gmail.com
ARCHIVE:
fenderbender.com/menefee
fenderbender.com
JOE GRETO
I think we can all agree that shop flow directly af-
EDUCATE & ELEVATE CONNECTING LEADERS IN COLLISION REPAIR
SEPTEMBER 24-26, 2023 • AURORA, CO HYATT REGENCY AURORA CONFERENCE CENTER FENDERBENDERCONFERENCE.COM
OWNED & PRODUCED BY:
SPONSORED BY:
COLUMNS
DUE PROCESS
Managing Consumer Expectations and Co-pays Help consumers feel confident about their decisions and your services collision repair is essential to ensure a successful repair and create an outstanding experience for the customer. Customers rely on us to provide quality repairs as well as timely results. However, ensuring we can perform a proper repair utilizing the representing insurer's financial restraints is not something we can accept responsibility for. As shop owners, we tend to believe that if we don't "bend" or "follow the rules" of the insurer, we will lose customers and residual business and risk our sustainable workflow. I would ask that you consider those concerns as nothing more than the potential impacts of failing to set accurate consumer expectations. 'Load the bow' When expectations are appropriately managed, customers are more likely to be satisfied with the service they receive. Your shop must communicate clearly with customers from the outset. Providing an accurate timeline and avoiding the "estimated" cost of repairs is critical. We refer to this as "loading the bow." I'm not a hunter, but I'm told that initially pulling back the string to load a bow is tough. Then, once you reach the sweet spot, the bow absorbs all of the weapon's tension, and you can hold the bow in a loaded position almost effortlessly for as long as needed. The target should include accurate "damage assessments." These will help consumers feel more confident about moving forward with their decisions and your services. When initially working to set expectations, supporting your facility's position with third-party data is essential. Consumers rarely believe what they hear and often only what they can read, see, or touch. So, gather supporting evidence and have it at arm's reach in your lobby. For example, if the use of alternative parts is the concern, have policy verbiage examples, crash test results, and video content that explains the impacts other customers had when entertaining the use of these parts during their repairs. In addition, it is essential to be aware of co-payments when quoting a customer on the expected costs for their repair. As we all know, co-pays can vary significantly. However, as professional repairers, we hold zero obligation to insurers. Focus on providing clear communication It is important to stay focused on providing clear communication. This ensures that consumers
September 2023
understand the process before getting started. Consumers love steps. With that in mind, determine how you would recommend all claims begin with and use it to define a shop standard. Then, put it in writing. Follow it by step two and so on. Keep it short, sweet, and no longer than five or six steps. Consolidate the information to avoid immediately overwhelming customers with too much information. When they’re properly executed, you will create a consistent baseline and standard claim-handling process for your facility. Regardless of the team member speaking to the customer, they are simply setting the customer's expectations and defining expected checkpoints that they understand will be their responsibility when we reach them. Providing this clarity is key. To build trust and credibility, use phrases such as, "We value your business and want to ensure that you are making decisions based upon all of the damage rather than a guesstimate amount" and "We have a defined process to avoid surprises or hurdles as your claim matures; would you like to see it?" It is also important to remember that people don't care how much you know until they know how much you care about them as humans. Most importantly, consumers are more afraid of making the wrong decision than they are of spending money. So, being available to answer any questions or alleviate any fears is essential. Record insurer payment trends We should be recording the trends of each insurer and who pays for what. This will constantly funnel pertinent information that will support painting the picture of what delivery day will look like for the consumer and, more importantly, what their insurer may or may not hold them financially responsible for. It's important to remember that customers want quality service and reliable results. Proactively managing their expectations is one of the best ways to ensure a positive customer experience. By setting clear expectations up front and staying focused on providing quality service, you can ensure that customers are satisfied with their repairs and look forward to working with your shop in the future. With proper communication, transparency, third-party data support, and an unwavering commitment to excellence at every touchpoint, you can be sure to build trust and credibility with your customers.
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D R E W B R YA N T has been
the owner of DB Orlando Collision since August of 2011. A 20 Group leader, in-demand conference speaker and award-winning shop owner, Bryant takes a non-traditional approach to process implementation, lean process development, & overall operational experience while remaining dedicated to his staff’s personal and professional development.
EMAIL:
drew@orlandocollision.com
ARCHIVE:
fenderbender.com/bryant
fenderbender.com
STEVEN PARKS
Managing customer expectations during a
The Passionate Parts People Jim | 36 Years of Service Delivery Driver | Minneapolis, MN
Meet Jim, a Delivery Driver at our Minneapolis, Minnesota location. Jim is one of the more than 45,000 men and women of LKQ who share the passion for providing the best possible parts and service for our customers. This year, as LKQ celebrates 25 years of providing choice in vehicle repair, we honor those, like Jim, and all our employees, for the passion they bring to their job, every day.
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