FenderBender - July 2017

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F E N D E R B E N D E R . C O M / J U LY 2 0 1 7

THE INS AND OUTS OF OVERTIME PAY

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BUILD A BETTER WEB PRESENCE

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Strategies & Inspiration for Collision Repair Success

HOW DO YOU STACK UP? CASE STUDY

ONE SHOP’S SECRET TO OPEN COMMUNICATION PAGE 4 8


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TA B L E O F CO N T E N T S

july

0 7.17 / V O L U M E 1 9 / N U M B E R 0 7

Pushing for Perfection Chris Williams demands high performance for himself—and the rest of his team at Dalton CARSTAR South.

F E AT U R E

C A S E S TU DY

S H O P TA L K

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48

56

To solve his shop’s communication issues, Erv Guyett created an advisory team within his shop.

Chris Williams’s quick rise in the industry has him leading an efficient team at Dalton CARSTAR South in Dalton, Ga.

BY NOURA ELMANSSY

BY KATHLEEN SANDOVAL

ANALYZING INDUSTRY PERFORMANCE

The 2017 KPI Survey takes a deep dive into the numbers and trends impacting your business.

IMPROVEMENT BY COMMITTEE AHEAD OF THE CURVE

KEVIN WRIGHT

BY TRAVIS BEAN

Printed in the U.S.A. COPYRIGHT ©2017 BY 10 Missions Media LLC. All rights reserved. FenderBender (ISSN 1937-7150) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. FenderBender content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at Twin Cities, MN, and additional mailing offices. POSTMASTERS Send address changes to: FenderBender, 571 Snelling Avenue North, St. Paul, MN 55104. July 2017 | fenderbender.com 3


TA B L E O F CO N T E N T S

JULY

QUICKFIX

19

27

CollisionCast’s deep dive into industry KPIs

The impact of the Chrysler-LKQ deal

Does educational background impact profit?

11

VIEWPOINT

ANALYSIS

PAST THE PAGE

21

Breaking down the overtime pay rule

CONFERENCE NEWS Super Session speaker announced

23

12

LIGHT HITS

Tesla’s collision repair move

AWARDS INSIGHT

The benefits of industry involvement Pay Plan Attorney Joyce E. Smithey says that all shop operators need to be prepared for the recent overtime pay regulation changes.

15

DRIVERS SEAT Use your data

24 21

SNAP SHOP

NUMBERS

29

HOW IT WORKS

The Nuventory inventory tracking system

30

THE BIG IDEA

Prepare yourself for success BY KEVIN RAINS

New York’s H&V Collision Center

READ WHAT THE PROS READ. “I HAVE TO TAKE MY HAT OFF TO FENDERBENDER. IT’S DEFINITELY BETTER & ABOVE THE REST.” - Greg Lobsiger, Owner | Loren’s Auto Body, Bluffton, IND.

TO SUBSCRIBE OR RENEW FOR FREE TODAY, VISIT

FENDERBENDER.COM/SUBSCRIBE 4 fenderbender.com | July 2017

COURTESY JOYCE SMITHE Y

9


45

IDEA SHOP

Create a recycling program that benefits your shop

46

TECH+TOOLS

Get more out of your shop’s electronic management system

52

61

SALES+ MARKETING

UPDATE

Carubba Collision continues its rapid expansion

The keys to building an effective web presence

62

IN THE TRENCHES

55

Crafting a culture based on core values and beliefs

ON THE BUSINESS A critical piece of information

BY STEVE MORRIS

BY MIKE ANDERSON

65

THINKSTOCK

INNOVATIONS 45

One shop’s mobile, rechargeable printing solution

Always keep a strategy in your back pocket. As long as you have your phone, you’ll have access to the premier collision repair podcast from FenderBender.

SPONSORED BY

Listen for free at fenderbender.com/collisioncast Also available in apps for Apple and Android (Podcasts, Stitcher, Pocket Casts).

July 2017 | fenderbender.com 5


TA B L E O F CO N T E N T S

ONLINE EXTRAS

CLICK ON THE LOGO BELOW FOR PRODUCT INFORMATION

Auto Job Central

ChemSpec USA

Polyvance

Axalta Coating Systems

Collision Repair Education Foundation

PPG

CAPA

Estify

SATA/Dan-Am Company

Car-O-Liner

Kia Motors America

U.S. Chemical and Plastics

CCC Information Services

O'Reilly Auto Parts

Vehicle Service Group

6 fenderbender.com | July 2017


EDITORIAL

Bryce Evans Editorial Director Anna Zeck Managing Editor Travis Bean Associate Editor Kelly Beaton Staff Writer Noura Elmanssy Staff Writer Tess Collins Custom Content Producer Kathleen Sandoval Web Content Producer Melissa Steinken Editorial Intern Mike Anderson Contributing Writer Kevin Rains Contributing Writer Steve Morris Contributing Writer

EDITORIAL ADVISORY BOARD

Elissa Larremore CBS 1 Collision Robert McSherry North Haven Auto Body Mark Probst Probst Auto Body Randy Sattler Rydell Collision Center

ART AND PRODUCTION

Zach Pate Art Director Fue Vang Graphic Designer Becca Sugden Graphic Designer Leah Quinto Production Artist Audrey Mundstock Graphic Designer

SALES

Chris Messer Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson National Advertising Sales 651.846.9459 / ajohnson@10missions.com Matt Mortinson Sales Manager 651.846.949452 / mmortinson@10missions.com Tyler Keehr Regional Advertising Sales 651.846.9460 / tkeehr@10missions.com Ana Larsen Regional Advertising Sales 651.846.9454 / alarsen@10missions.com Melody Todd Regional Advertising Sales 651.846.9468 / mtodd@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com

10 MISSIONS MEDIA

Jay DeWitt President Anders Seefeldt Marketing Communications Specialist Mariah Straub Sales Service Supervisor Meghann Moore Sales Service Representative Katie Cornet Event and Special Projects Coordinator Josh Resch-Lien Digital Marketing & Multimedia Assistant HOW TO REACH US 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 10missions.com SUBSCRIPTION SERVICE tel 800.869.6882 fax 866.658.6156 subscriptionservices@fenderbender.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender. BACK ISSUES Past issue single copies are $8. Go to fenderbender.com/backissues LETTERS TO THE EDITOR letters@fenderbender.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue call 651.846.9452 or email reprints@fenderbender.com.

July 2017 | fenderbender.com 7


WHO WE ARE

Auto Job Central is a job board dedicated only to the auto repair industry.

WHAT WE STAND FOR

Connecting shop operators with qualified techs, estimators, painters and more in one centralized spot.

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FREE LISTING

Contact us at info@autojobcentral.com or 727-497-6565 x3349.


07.17 C O M M E N T S , D I S C U S S I O N S , F E E D B A C K A N D M O R E F R O M A R O U N D T H E W E B

FAC E B O O K

LINKEDIN

Share Your Story A New Era in Estimating

I own a body shop in a fairly rural community (“Stop Rekeying Estimates,” May 2017). My workforce consists of me and one other guy. And although rural and small, my time is invaluable. Estify has been a lifesaver for me. Also, I’m not fluent in all the different estimating software, as some larger shops with “designated estimators” might be. I’ve found that having estimates matched to the software that I am familiar with has highlighted many shortcomings and reduced labor times on estimates that I wouldn't have been aware of otherwise. Maybe that’s my own fault, maybe most shops with dedicated estimators would catch these things, I’m just saying that I wouldn’t have. Estify has paid for itself on every estimate in my case. I sound like a spokesperson for them. I assure you I’m not.

Each shop faces different challenges and has its own way of overcoming obstacles and growing, but what are shop operators doing to improve their businesses? FenderBender staff writer Noura Elmanssy asked the LinkedIn group to share their stories with fellow industry leaders and offer up some key tips for growing a shop or a new strategy to implement. Join the conversation at fenderbender.com/shopgrowth

T W I T T E R @FENDERBENDERMAG

PPG releases OEM panel discussion video. bit.ly/2rMiCcg

Sheamus McQuade Owner, Wilbur Auto Body Wilbur, Wash.

The Women’s Industry Network conference honors influential industry women. bit.ly/2seCena

PODCAST

Houston @Service_King shops raise $45K for The Arbor School. bit.ly/2ra5Pkt

COLLISION THINKSTOCK

C A S T

In July’s installment of CollisionCast, staff writer Tess Collins discusses the results of this month’s KPI survey with Adam Grant, owner of Xtreme Collision Center and upcoming FenderBender Management Conference speaker.

To better assist shop owners, the team put a list together of important reading material from its favorite sources. bit.ly/2qnWVfP

Listen now at fenderbender.com/CollisionCast

FOLLOW US ONLINE

fenderbender.com fenderbender.com/facebook twitter.com/fenderbendermag fenderbender.com/linkedin instagram.com/fenderbendermag July 2017 | fenderbender.com 9


Shop owner. Monday morning motivator. Quality fanatic. CAPA convert. You didn’t build your reputation overnight. And you didn’t do it using inferior parts. Which is why CAPA created the industry’s first crash part testing and certification program over 29 years ago. To provide an assurance of quality in replacement parts for everyone whose livelihood depends on quality repairs. It isn’t always easy to spot a poor quality replacement part. One that’s ungalvanized, made of inferior material, unsafe, or lacks all the correct welds. So we do all that for you. CAPA Certified parts. The only replacement parts tested and found good enough to earn the yellow and blue CAPA Quality Seal. And the approval of shop owners like you.

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If it isn’t CAPA Certified, it isn’t a genuine replacement part. capacertified.org


2017

T H E

L A T E S T

N E W S

O N

T H E

F E N D E R B E N D E R

M A N A G E M E N T

C O N F E R E N C E

Maaco Hall of Fame Winner Added to Management Conference

COURTESY BRIAN GREENLEY

Maximize Profit Maaco franchisee owner Brian Greenley will present at the conference.

Brian Greenley, president of Greenley Enterprises Corporation DBA Maaco Collision Repair and Auto Painting, will deliver a three-hour Super Session on setting businesses up for sustained success at the 2017 FenderBender Management Conference. Greenley purchased his first shop when he was just 20 years old. Since then, he has gone on to own and operate one of the most successful Maaco franchises in company history. Greenley built his business from six employees and $400,000 in annual revenue to a 40-person, $8 million-per-year model of efficiency. Greenley has been featured in a number of different articles, including Entrepreneur, USA Today and Franchising magazines. During the management conference, Greenley will share the lessons that he’s learned with attendees during his session, “Profitability Bootcamp.” The session is a no-nonsense guide to maximizing margins and setting up a business for continued success. For more information, head to fenderbenderconference.com

Registration for the 2017 FenderBender Management Conference, held Sept. 27–29 at the Westin Lombard near Chicago, is now open at fenderbenderconference.com. Early bird prices are available for a limited time.

YOUR 24/7 COLLISION COMMUNITY FOLLOW US: fenderbender.com/facebook

fenderbender.com/linkedin

fenderbender.com/twitter

fenderbender.com/instagram

• SEE PHOTOS & VIDEOS • GET THE LATEST COLLISION CONTENT • TELL US WHAT YOU REALLY THINK

July 2017 | fenderbender.com 11


AWARDS INSIGHT

FINES HE

T

T

BRETT BAILEY

CO

LLI

AI

IN

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AWARDS P SION RE

Getting Involved in the Industry AWARDS NOMINEE

BRETT BAILEY OWNER A&B CARSTAR KANSAS CITY, MO.

A S T O L D T O K E L LY B E AT O N

Brett Bailey is associated with seemingly every collision repair industry acronym there is: He’s currently the vice chairman for the Society of Collision Repair Specialists (SCRS), and is also involved with the National Auto Body Council (NABC) and the Collision Industry Conference (CIC). And, in the past, he has held various positions with CARSTAR’s advisory board. He’s a devoted family man, and is motivated to help his Kansas City-area MSO, A&B CARSTAR, continue to grow. But Bailey still carves out time to travel to gatherings like CIC and SEMA because he knows those trips offer an invaluable return on investment. Not only does his involvement with the aforementioned organizations help Bailey stay on top of the latest trends, but it also allows him to do his part to better the collision repair industry. “You know, it’s real easy to sit back and gripe, but at the same time, if you’re going to gripe, you better have a solution,” says Bailey, whose fivelocation MSO produces a combined annual revenue of $17 million. “So, knowing that you’re going to be involved with something that will hopefully be a benefit to everybody … I think is a win-win.” Bailey, who has owned A&B CARSTAR for over a decade, provides suggestions for how his peers can get more involved in the industry— and thus, improve collision repair on a widescale level.

Bailey feels it’s imperative to form a professional bond with industry peers, whether that be with car manufacturers, insurance carriers or fellow shop owners. “This industry is still very much a relationship industry,” he says. “The relationships that I build being in this industry … there’s a gain by having those. You know, if we have a vehicle in our shop that we struggle to find a repair procedure for, I’ve got contacts where I can go to—to one, help see if there is a repair procedure, or two, maybe work with that individual to develop a repair procedure. Without those relationships, at the shop level you would be kind of stuck.” Continue Training.

In an ever-evolving industry, knowledge is an asset. That’s why Bailey, whose 12 fenderbender.com | July 2017

MSO has 87 total employees, embraces the concept of consistent training. “If you’re going to be involved in this industry from any aspect, training and education are more important today than they ever have been,” Bailey says. “And you’ve got to continue to learn if you’re going to be successful … and to make sure that we do the right thing, at the end of the day, for the customer.” Embrace Debate.

The occasional professional discourse has its merits, in Bailey’s mind. “There are times in our industry that you need to stand up, as a shop owner, for what you believe is right,” says Bailey, in regard to situations such as if insurers decline payment for pre- and post-repair scanning. “I think there’s a right way to do it, respectfully, and courteously, so

that you get your message across but … we’re not attacking an individual, we’re attacking a process, and making sure that we understand why we do it.” Find Strength in Numbers.

Above all else, Bailey suggests that his peers find an industry organization that they can learn from and share information. Every element of the industry benefits from that scenario, Bailey says. “If we didn’t have people involved in finding solutions in the industry, it would be scary, in my opinion, to know what the outcome of repairs would be,” he says. “Being involved in the industry and having associations, and having committees … they steer us in a direction that allows us to know what good repairs are, and try to deliver that to the industry. “I think that’s the best thing you can do as a shop owner—get involved.”

FUE VANG

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D R I V E R ' S S E AT

Numbers Game A SIMPLE PHRASE, A LOT OF METRICS, AND OUR ANNUAL SURVEY I would be pretty confident in saying that the phrase “you can’t manage what you don’t measure” (or some slight variation) has been quoted in our magazine by more shop operators, consultants and columnists than any other single set of words. I mean, it’s a safe bet; it’s very likely that this oft-cited cliche is just as common in every business-focused magazine, regardless of the industry. I can’t remember the first time I heard it, nor who said it. But in the roughly five years I’ve worked at FenderBender, the amount of times I’ve had it recited to me while conducting an interview is well into the triple digits. (If you’re curious, the cliche is actually a loosely paraphrased quote from 19th century Scots-Irish mathematical physicist and engineer Lord Kelvin, who is better known for formulating the first and second laws of thermodynamics (and if you’re curious, I googled that; journalism at work).) Now, I bring all of this up only to drive home a point here: Internally at FenderBender, we hear this phrase so often that it’s easy to assume that all of our readers are just as familiar with it—or, more importantly, the concept behind it. Being able to tangibly measure progress in a business is absolutely critical to strategic planning and decision-making. We write about this every month, and for many of you, if you don’t hear it enough here, you’re also hearing it in 20 Groups or from business coaches or from any number of sources. Yet, for each of the last five years, our annual KPI Survey reminds us that this concept isn’t quite as universal as many of us sometimes think. You can find our overview of the results, put together by associate editor Travis Bean, on page 33, and one of the very first numbers you will see is that 73 percent of respondents regularly track KPIs in their businesses. That’s actually the highest total in the five years of the survey, but still likely lower than many might expect. But here’s a result that is far, far less surprising: For the fifth straight year, the shops that track and measure KPIs outperform those that don’t. You’ll find a slew of interesting takeaways in our eight-page feature in this month’s magazine, and you might notice that we took a slightly different approach to it this time around. Our goal was to provide a more comprehensive overview of those takeaways and hammer home some of the key points that can be extrapolated from the data. And we are offering even more data in our for-purchase KPI Survey: Complete Report, which is available online. That includes the full slate of responses, demographic data and even more comparisons and takeaways. It’s all more than worth your time to check it out. Overall, the goal of our KPI Survey each year is to provide you with data to see where your operation stacks up—where the strengths, weaknesses and opportunities lie in your business. And hopefully, for the 27 percent who do not regularly track KPIs, it can provide some motivation to do so. After all, you can’t manage what you don’t measure.

NICK SPAETH

If I had to place a bet on it,

B R YC E E VA N S EDITORIAL DIREC TOR b e v a n s @10 m i s s i o n s . c o m

July 2017 | fenderbender.com 15


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CUSTOMER FEEDBACK

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NEWS

|

IDEAS

|

PEOPLE

|

TRENDS

quick fix ANALYSIS VIEWPOINT LIGHT HITS SNAP SHOP NUMBERS HOW IT WORKS

Growing Markets According to a new report, the aluminum casting market is expected to grow over the next five years. —

COURTESY GREEN CAR REPORTS

PAGE 23

July 2017 | fenderbender.com 17


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QUICK FIX

INSIDE THE CHRYSLERLKQ TRANSACTION

A N A L Y S I S

FCA bypassed franchised dealers to sell select parts to LKQ. Will it impact your shop? BY MELISSA STEINKEN AND BRYCE EVANS

In March, Fiat Chrysler Automobiles (FCA)

THINKSTOCK

granted LKQ permission to sell certain Mopar parts numbers directly, rather than going through its franchise dealership parts network, according to multiple industry sources. Word of the transaction created ripples throughout the dealership world, as many Chrysler parts sellers found the decision baffling and even considered it a detriment to the industry. “We have been firmly and vehemently against them allowing this to happen and have expressed this to them,” says Marvin Windham, parts director at Benchmark Chrysler Dodge Jeep Ram in Birmingham, Ala., and a member of the Mopar Masters Guild (MMG) executive council. Benchmark CDJR is the country’s ninth-largest in overall purchases through Chrysler. When reached by FenderBender, a Chrysler representative stated that the company, by policy, does not comment on transactions. According to a large group of collision parts dealers, the agreement with LKQ consisted of roughly 1,100 parts numbers, including 164 for current model vehicles. It remains to be seen whether this type of transaction will become a larger industry trend—and how such moves by automakers will affect the collision repair industry, particularly how and from whom shops purchase parts. Breaking Down the Issue Upon hearing of the decision, the MMG was granted a meeting with Chrysler brass in Detroit in late March. The guild didn’t

receive the news nor explanation it desired. Windham says that Chrysler called the transaction a “business decision.” “For their justification, they said market share was down significantly on these numbers and they felt like dealers weren’t doing enough to make these sales,” he says. Ultimately, Windham says, Chrysler felt dealers weren’t doing enough to make the sales on those parts number, and the automaker saw an opportunity to kickstart growth. Windham says that he feels the agreement weakens all FCA franchised dealerships, as LKQ is a direct competitor. Chrysler franchisees were told that LKQ wouldn’t receive any parts numbers for current vehicles, but Windham says those parts numbers were already listed on the LKQ website. Chrysler isn’t the only OEM to follow this trajectory. Ford, among others, has made a similar move in the past, says Elissa Larremore, owner of CBS Collision in Shreveport, La., and a member of the Automotive Service Association’s collision operations committee. The Collision Repair Impact Darrell Amberson, president of operations at LaMettry’s Collision, a multishop operation in the Minneapolis metro area, says Chrysler selling directly to LKQ could potentially spell a loss of profits for independent collision shops. Despite only hearing murmurings of other franchises carrying out similar actions, Amberson says this continues

a trend of parts becoming the focus of competing dealers, ultimately expanding the region from where independent shops seek to purchase parts. As a result of the relationship between parts sellers and collision shops being impacted by the shop’s volume of sales and return rates, shops could see a loss in dealership discounts from this shift, Amberson says. “If all of a sudden, you’re not buying as much from the [dealer], you’re not going to get good pricing,” he says. Questions remain to determine if Chrysler’s actions are good or bad, Amberson says. In particular, he says he would like confirmation that the parts are really the same, and has concerns that LKQ can be as prompt and efficient in delivery as dealerships are. “Timeliness is a critical part of the equation,” Amberson says. “When we preorder parts when a car is coming in, we want parts here as quickly as possible.” From Larremore’s perspective, however, it all comes down to quality, rather than from where she orders the part. “As a shop owner, I am concerned with the quality of the parts, integrity, finish, fit, etc.,” Larremore says. “If it’s a good quality part, I don’t see a difference.” Larremore says the Chrysler oversight could help improve aftermarket parts that don’t compare to an OE standard of quality. For her, she sees this agreement as Chrysler looking to ensure customer loyalty by keeping the customer as happy as possible. July 2017 | fenderbender.com 19


READ WHAT THE PROS READ. “I HAVE TO TAKE MY HAT OFF TO FENDERBENDER. IT’S DEFINITELY BETTER & ABOVE THE REST.” - Greg Lobsiger, Owner Loren’s Auto Body, Bluffton, IND.

Grow your collision repair business with ideas and insights from industry experts.

TO SUBSCRIBE OR RENEW FOR FREE TODAY, VISIT

FENDERBENDER.COM/SUBSCRIBE


QUICK FIX

OVERTIME PAY: WHO GETS IT?

A lawyer specializing in employee law shares what shop owners should be on the lookout for when it comes to overtime pay BY TESS COLLINS

In the beginning of March, the 9th U.S. Circuit Court of Appeals ruled that service advisors, in contrast to technicians, are not exempt from overtime pay under the Fair Labor Standards Act. The ruling is unique because it basically splits the Circuit Courts down the middle when it comes to this decision, says Joyce E. Smithey, who heads labor and employment practice at Rifkin Weiner Livingston in Annapolis, Md. A split within the circuit increases the likelihood that the Supreme Court will get involved in the ruling to resolve the issue, Smithey says. So where does this leave shop owners who are trying to figure out whether or not to pay their employees overtime? “There’s a lot of uncertainty; it’s even difficult for lawyers,” Smithey says. With a new administration and different rulings on both the state and the Federal level, this has left many small business owners unsure of how to proceed. If a shop owner, whether on purpose or not, is not in compliance with his or her state laws, the owner may face a lawsuit and owe back pay. Smithey, who shares some tips with FenderBender, says that the best thing an owner can do to prepare is to speak with a lawyer.

COURTESY JOYCE SMITHE Y, THINKSTOCK

Could you explain the difference between an exempt and a nonexempt employee in regard to overtime pay?

When we’re talking about exempt and nonexempt, we’re referencing the Fair Labor Standards Act that governs wages and overtime. Business owners need to figure out which employees fit within exemptions, and that’s where it gets difficult—there are a lot of interpretations. For example, computer professionals, drivers, loaders and farm workers are a few job titles that are exempt. Then, there are some broader exemptions like executive administration professionals. There are many exemptions and countless pages of documentation that cover this. In the automotive industry, there are specific exemptions for people who deal with parts and technicians, but only if they deal directly with an auto dealer. Another thing that shop owners will have to look at is the way they are paying their employees. If an employee is getting a flat rate, but that rate is based on sales, they could qualify under the commissioned sales exemption that’s been litigated in both the 4th and the 7th Circuits and in California. What are the differences in job duties that may make one employee exempt and another nonexempt from overtime pay?

An area that collision repair shops will want to take a closer look at is office employees. Common examples of exempt employees are professionals and those that do executive and administrative work. A good rule of thumb is people who are licensed are exempt. I saw a case once where a shop got in trouble for not paying their bookkeepers with a certified public accountant’s (CPA) license overtime. They had to be paid because of the CPA. To get to the professional exemption, there are a number of other requirements. One of them is a salary-based test. This was highly publicized at the end of 2016, where the base level salary was going to be raised and then it was halted right before the deadline. Another requirement is the duties that the employee is performing. Management employees need to oversee two or more people and have the power to hire and fire. Someone in your shop that’s just answering phones will not be exempt. However, for a larger body shop that has 20 employees, a manager in that shop will likely be exempt. Since there are so many discrepancies from state to state, what can a shop owner do that’s unsure of what guidelines he or she needs to follow?

Business owners need to be aware that wages are not just governed by the Fair

V I E W P O I N T

Labor Standards Act (FLSA). States have their own regulations and different exemptions and criteria that don’t necessarily reflect what is happening at the national sector. A lot of the state statutes are even more strict than the FLSA. For example, in Maryland, we have what’s called treble damages, which means if you haven’t paid an employee overtime, they could be entitled to triple what is due to them. You can do nine out of 10 things right, or the law can change, and you’ll be held accountable. It’s hard to know exactly what’s out there if you don’t specialize in it for a living. I would suggest talking to an attorney. It will give you peace of mind if you’re able to go in and say, “I have this many employees, this is what they all do.” The attorney will be able to give you guidelines as to whether or not you need to start paying anyone overtime. If an owner finds out that they have an employee that is entitled to overtime pay, how should he or she proceed?

If a shop owner finds out that they have an employee that has been misclassified, they’ll want to correct that right away. Shops need to keep accurate records of whenever their employees are entitled to overtime pay work. Owners also need to communicate an employee’s schedule and make it clear what the policy is for overtime. That can help protect against those 9-to-5 employees that are supposed to take an hour for lunch, but come back later on claiming they answered phones for that hour. Make it clear if you have an overtime policy that requires approval ahead of time. If you have an employee that may be entitled to back wages, talk to a lawyer. It’s good to address the risk moving backward. July 2017 | fenderbender.com 21


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U.S. Chemical & Plastics, A Valspar Automotive Brand. Š2017 The Valspar Corporation.


News

QUICK FIX

For your daily collision repair news visit

LIGHT HITS

fenderbender.com/lighthits

A New Player Shop owners Tim Beal and Byron Davis have entered a partnership to create their own robotic paint drying equipment.

COURTESY U.S. AUTO CURE

INDEPENDENT SHOP OWNERS DEVELOP ROBOTIC PAINT DRYING EQUIPMENT Two American independent collision repair shop owners are mere weeks away from finishing developing their own robotic paint drying equipment. Tim Beal, owner of Beal’s Auto Body & Paint in Prescott, Ariz., and Byron Davis, owner of Auto Body Specialties in Springfield, Ore. (both of whom have been featured in FenderBender), started their company U.S. Auto Cure and have partnered with mechanical and electrical engineers that have worked in the computer and aerospace industries to develop the Phoenix1000 curing system. Most robotic paint drying equipment— which drastically improved cycle times for European shops years before the technology came to the U.S.—comes with a complete robotic arch mounted to a track on the ceiling of a paint booth, which passes over a vehicle at roughly three feet per second; a half-arch model, designed primarily for prep bays, that also travels on a mounted ceiling track and can be maneuvered to directly hit specific areas of vehicles; and a handheld version for smaller jobs. David Aldrich, an electrical engineer, took Beal and Davis’ combined personal experience with infrared paint curing systems (which have been featured in FenderBender heavily in the past) and applied it to the design of the Phoenix1000 with his fellow engineers, who studied the several other options on the market to form their near-ready product. Beal was an early American adopter of robotic paint drying, which made its way into the U.S. in late 2014. Yet, while all three major companies specializing in robotic paint drying—Symach, Greentech, Ionitec—have obtained their UL certifications and are readily available in the U.S. market, adoption hasn’t exactly been widespread. Beal says that’s largely due to the costliness of the systems (one can expect to spend, at the very least, $50,000 to $100,000, says Steve Trapp, North American services manager for Axalta Coating Systems) and the lack of American-based service centers whenever the equipment malfunctions. While Beal’s Auto Body experienced vastly improved cycle times and had its best sales month ever upon implementing

robotic paint drying equipment, Beal says mechanical issues, space restraints and service frustrations kept his shop from reaching its full potential, and oftentimes impeded production. FenderBender will follow up in the next couple months with more information once the Phoenix1000 is complete.

TESLA PLANS TO ENTER COLLISION REPAIR BUSINESS In an effort to improve the customer experience with out-of-warranty body repair, Tesla intends to open its own auto body shops in late 2017, the company recently announced to shareholders. Tesla acknowledged the move in a company letter to investors, but provided limited details. The OEM also plans to expand the existing network of third-party Tesla certified body shops. It remains unclear how many first-party body shops Tesla plans on opening in 2017, or what its long-term strategy is. The OEM also announced this week that it plans to add more service facilities worldwide, in addition to sending mobile technicians to customers. “This year, we plan to add nearly 100 retail, delivery and service locations globally, representing an approximately 30 percent increase in facilities,” Tesla noted, in the aforementioned company letter. “... We also plan to add more than 100 mobile repair trucks in Q2 alone.”

ALUMINUM CASTING MARKET TO GROW 43 PERCENT BY 2022 MarketsandMarkets published a report that claimed the aluminum casting market size is estimated to grow from $55 billion in 2017 to $79 billion by 2022, at a CAGR of 7.33 percent. It is projected to witness significant growth in the next few years with the increasing demand for lightweight vehicles and new constructions all over the world due to rapid

urbanization and industrialization. Large-scale investments in industrial and manufacturing units, coupled with the rising demand for lightweight, fuel-efficient vehicles in emerging economies are some of the factors driving the growth of the aluminum casting market. The die casting segment is estimated to dominate the process segment of the aluminum casting market as it helps to reduce the weight of the vehicle and industrial machines. It is mainly used in the transportation sector to improve the fuel efficiency of vehicles. Owing to the considerable growth in the automobile industry globally, the demand for lightweight vehicles is expected to increase, which will further drive the die casting market. The transportation sector dominated the market in 2016 and is projected to be the fastest-growing end-user sector over the next five years, as a result of the rising urbanization and demand for fuel-efficient and lightweight vehicles. The transportation sector is projected to witness the highest growth in demand for aluminum casting, as aluminum is considered one of the most viable materials for manufacturing automobile parts such as cylinder heads, chassis, and powertrain due to the wide range of benefits offered such as high strength-to-weight ratio, sustainability, recyclability, and versatility. Asia-Pacific constitutes the largest market share in the aluminum casting market wherein China is the largest countrylevel market. The recovery of the Chinese residential market by 2010 after the 2007– 2009 recession and the increasing demand for lightweight low maintenance vehicles are some of the factors driving the aluminum casting market in Asia-Pacific. The market in this region is growing rapidly due to the presence of numerous leading players. The excellent hold on industries such as construction, automotive, mass transport, and aerospace have played a crucial role in the growth of the market for aluminum casting in the Asia-Pacific region. July 2017 | fenderbender.com 23


QUICK FIX

SNAP SHOP

H&V COLLISION CENTER LOCATION:

Kingston, N.Y. SIZE:

20,000 square feet STAFF:

26

AVERAGE MONTHLY CAR COUNT:

125

ANNUAL REVENUE:

$3.9 million

1

1

2

A key element that sets H&V Collision Center apart from its competitors is the business’s creative marketing. H&V often gives back to the community, and the philanthropy has the added benefit of building the MSO’s brand throughout Upstate New York’s eastern corridor. For example, in April, H&V gained recognition for the Easter party it threw in Albany, N.Y., which brightened the holiday for roughly 60 youths associated with local Boys & Girls Clubs. Occasionally, such events are held at H&V locations. While assistant vice president Richard Tanchyk notes that H&V mainly takes part in charitable endeavors out of a sense of civic duty, he acknowledges that such events also help the MSO “send a message out about who we are.”

When H&V took over its Kingston facility a few years back, the MSO’s management found itself with an old, roughly 9,000-square-foot building that used to house a hardware store. During a 2015 construction process that more than doubled the size of that facility, H&V added overhead doors on all sides of the building except in the front where offices are located. Tanchyk says the addition of the doors has made for improved flow throughout the shop floor.

24 fenderbender.com | July 2017

MULTIPLE OVERHEAD DOORS

COURTESY H&V COLLISION CENTER

UNIQUE COMMUNITY MARKETING


Submit Your Shop Proud of your shop and want to show it off to your peers? Tell us about it at submissions@10missions.com.

2

3

4

3

4

H&V’s website notes the great lengths the MSO goes to in order to have an environmentally safe shop environment. That’s especially apparent at the Kingston location, which has a pair of SAICOZERO zero emissions spray booths. Tanchyk says H&V is one of just a few New York shops to own the zero emissions booths, which, despite their initial cost—nearly three times what a typical downdraft booth costs—are extremely energy efficient, burning at roughly seven times fewer BTUs than a typical downdraft booth, according to Tanchyk. “From an emissions perspective, zero emissions are the standard,” he says.

H&V’s Kingston location serves as a test site for a Würth Group vending machine, which provides the New York shop with streamlined inventory management and cost control on roughly 80 different shop supplies. H&V’s technicians are given an ID number, which they use to access the vending machine. Along with that number, techs are also required to enter the RO number for the job they’re working on. The machine dispenses materials similar to a traditional food vending machine, but H&V also uses it to manage inventory with notifications for items that are vended, which are itemized in automated reports showing the tech’s ID, the RO number and the cost per vend. Tanchyk says the vending machine not only keeps supplies secure, but it also controls wasted products.

ZERO EMISSIONS PAINT BOOTH

TOOL VENDING MACHINE

July 2017 | fenderbender.com 25


KIA MOTORS AMERICA CONGRATULATES OUR

2016 PARTS ELITE DEALERS PLATINUM SERRA KIA OF GARDENDALE CAR PROS KIA CARRIAGE KIA THE KIA STORE CROWN KIA KIA OF CERRITOS SCOTT KIA OF SPRINGFIELD HENDRICK KIA OF CARY HAWKINSON KIA ORLANDO KIA EAST SOUTHWEST KIA PEAK KIA PEORIA KIA MORITZ KIA

Charlie McCown, Jr. Elder Acevedo Bryan Roper William Thurman Rhonda Orsborn Gene Schilder James Johnson Samuel Dement Jeremy Mihas Mark Hofmann Lamar Johnson Alex Gross Erica Fine Leo Salgado

PERFORMANCE KIA KIA OF PUYALLUP SOUTHWEST KIA-NW ANCIRA KIA RIVERSIDE KIA QUIRK KIA RUSTY WALLACE KIA HAGERSTOWN KIA JERRY SEINER KIA, SALT LAKE ELK GROVE KIA GOSSETT KIA BALD HILL KIA ROSEN KIA FERGUSON KIA LOU FUSZ KIA

Garrett Svendsen Donald Breen Justin Barron Terrance Stewart Adam Carruthers Dana Swan Gregory Wampler Richard Fraley Larry Greenhalgh Kevin Corbet Michael Richards Matthew Jarvis Ray Christiansen James Easton Joshua Rosenthal

FAIRFAX KIA KIA OF LANSING KIA OF GREER FOLSOM LAKE KIA PHIL LONG KIA OF COLORADO SPRINGS FRED BEANS KIA OF FLEMINGTON FISHER KIA YOUNG KIA FOX KIA YONKERS KIA LAUREL KIA KOONS KIA BEYER KIA FALLS CHURCH MIKE SMITH KIA

Michael Munn Mathew Rue James Chapman Joshua Boody Ken Klaassen Jason Jaisle Bryan Parry Daniel Evans Jeffrey Norton Alex Zapata Peter Gray James Woodland, Sr. William Cooke William Proctor

GOLD ED VOYLES KIA SUSSMAN KIA DELAND KIA UNIVERSAL KIA KEARNY PEARSON KIA JACK MILLER KIA COBB COUNTY KIA ARCHER KIA KIA OF ORANGE PARK FREDY KIA RICART KIA HUFFINES KIA DENTON STOKES KIA ORLANDO KIA WEST CAMELBACK KIA

Glenn Hammonds Matt Jackson David Booth Brandon Ottow Douglas Herold Dennis Faltermeier David Denmon Steve Benoit Daniel Carr Mike Solis Larry Mills Errol Youngblood Ernest Stout Armando Padin Kurt Marx

LUPIENT KIA VANDEVERE KIA PARKWAY FAMILY KIA CAPITOL KIA VALLEY-HI KIA RAY SKILLMAN WESTSIDE KIA LEE JOHNSON KIA CLASSIC KIA OF CARROLLTON SMAIL KIA BOB MOORE KIA NORTHWEST BRAMAN KIA RUSS DARROW KIA WAUKESHA STEVENSON KIA LEV KIA OF FRAMINGHAM FIRST KIA

Marty Van reese Matthew Pace Troy Scanlin Cody Webster Stuart Meyer Debbie Mahan Tyson Thompson Carlos Escalante Shawn Sikora Skyler Phillips Alejandro Heredia Jeffery Krueger Joshua Stein Joseph Pereira Wayne Dawson

CAR PROS KIA HUNTINGTON BEACH MURRAY KIA ADVANTAGE KIA OF PALATINE KARP KIA FREEDOM KIA WILSON KIA ON LAKELAND GENERATION KIA CRAIN KIA OF CONWAY CASEY KIA GARY ROME KIA OF ENFIELD VAN SYCKLE KIA CONCORD KIA EAGLE AUTO KIA KIA COUNTRY MIKE MILLER KIA

Alexander Garcia Alan Bannick Branden Scharringhausen John Costiglio Kirk Turner Jeffery Tagert William Andrews Justin Wray Patrick Devos Timothy Ferreira Ryan York Fernando Belanger Robert Portelli Neil Holcomb Joy Thannert

SILVER GALEANA KIA BAIERL KIA KIA OF UNION CITY CAR PROS KIA GLENDALE CAPITOL KIA MENTOR KIA GALEANA KIA KINGS KIA TEMPE KIA KIA OF GREENVILLE GUNTHER KIA KIA OF DES MOINES

Sonya Jennings Amanda Mazza Paige Collins Duncan Pereira Guadalupe Garcia Rich Enneper John Karaniuk Mike Burkart Daniel Lanious Anita Burgos Brian Scott Brett Obraza

HADDAD KIA RALLY KIA HUFFINES KIA MCKINNEY KEFFER KIA EARNHARDT KIA PATTERSON KIA OF ARLINGTON MORITZ KIA OF HURST SONS KIA FORT WAYNE KIA JAKE SWEENEY KIA PARKSIDE KIA

Dennis Robb Walter Althouse, Sr. Roy Allen Jeff Allred George German Stephen Gunsolus Adam Lammey Stephen Wilson Brian Dinelli Robin Ollerdisse Robert Kay

BILL DODGE KIA MEDVED KIA RAY BRANDT KIA FUTURE KIA GRIECO KIA WEST-HERR KIA CRAIN KIA AUTO WORLD KIA KING KIA VISION KIA OF CANANDAIGUA SOUTHERN KIA GREENBRIER

Nicholas Perkins Andrew Steele John Helmstetter Kevin Messa Mike Proulx Robert Bartus Timothy Hill Paul Petralia Dennis Whitaker David Lyzwa Diana Shubert

LITHIA KIA OF ANCHORAGE EARNHARDT LIBERTY KIA KIA OF KINGSPORT COLUMBIA KIA HOMETOWN KIA MICHAEL STEAD'S HILLTOP KIA KIA OF LYNCHBURG SAN LUIS BAY MOTORS KIA KIA OF MARIN MATTHEWS KIA PAT PECK KIA

Justin Green Chuck Zerby James Mcelyea Joseph Brochu Tim Farley Jarrod Hallam Thomas Stauber Tina Kohler Todd Schneider Gary Brundage Anthony Hannagan


QUICK FIX

NUMBERS

EDUCATION LEVEL: EARNED BACHELOR'S DEGREE

THE CORRELATION BETWEEN EDUCATION LEVEL AND NET PROFIT

53.6%

A college degree doesn’t necessarily translate to big net profits

Overall net profit margin of 11% or higher

While it’s a common belief that college degrees eventually help business people generate big money, the 2016 FenderBender Education & Training Survey sheds some doubt in that regard. Here’s a look at the percentage of survey respondents—among the core four groups of respondents—who lead shops with net profit margins of 11 percent or better.

EDUCATION LEVEL: COMPLETED HIGH SCHOOL

EDUCATION LEVEL: COMPLETED TECHNICAL/ VOCATIONAL SCHOOL

EDUCATION LEVEL: ATTENDED SOME COLLEGE DID NOT FINISH

42.9%

35.1%

56.8%

Overall net profit margin of 11% or higher

Overall net profit margin of 11% or higher

Overall net profit margin of 11% or higher

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July 2017 | fenderbender.com 27 6/28/17 1:14 PM



QUICK FIX

HOW IT WORKS S H O P R E V I E W S O F C O L L I S I O N R E PA I R P R O D U C T S

THE DETAILS NUVENTORY WEBSITE:

Nuventory.com COST:

$150 per month USES:

Inventory management

ERICK BICKETT FOUNDER/CEO

TRAINING:

FIX AUTO USA

Free web training available and onsite training available for a fee

11 LOCATIONS ACROSS U.S.

NUVENTORY

The CEO and founder of Fix Auto USA reviews inventory tracking software

COURTESY NUVENTORY

BY TESS COLLINS

THE REVIEWER:

THE SHOP:

Erick Bickett is the founder and CEO of Fix Auto USA. Bickett founded the Collision Industry Electronic Commerce Association (CIECA) in 1995, and in 1997, served a two-year term as the chairman of the Collision Industry Conference (CIC). He is also one of the original founders of Caliber Collision. Throughout his career, Bickett has worked at and owned a number of different shops. Before founding Fix Auto USA, Bickett owned his own shop, where he was meticulous about monitoring paint and material usage. While he was unable to continue personally overseeing that usage once he moved into his current role, he still emphasizes the importance of managing material costs. Bickett knew he needed a way to keep his shops moving at an efficient pace, while also cutting down on wasted materials. Bickett began looking for a system that he could implement in his shops that would allow him to track paint and materials. Bickett, who also has experience in the world of software, even considered creating a system on his own. Three years ago, he was introduced to Nuventory by a friend. Now all of the locations that Bickett is in charge of use Nuventory.

Bickett owns and operates 11 Fix Auto USA franchise locations. Bickett says that his locations are often used to test new strategies and solutions before they are rolled out to the rest of the network.

HOW IT WORKS: Nuventory is an inventory management system that can be used on a mobile device. Along with tracking inventory, Nuventory can measure technician material usage; allows users the ability to set an inventory baseline and auto purchase; and captures items, like fasteners, that are not on the original estimate to create an accurate invoice. Nuventory users can go into the system and set the desired quantities of their materials. By setting minimum quantities, the system will flag what needs to be ordered automatically. The color-coded system allows the user to see when these parts need to be replenished. Bickett says that at his locations, the technicians have Nuventory on their mobile devices and add materials that they need by inputting the SKU, which places that item in the user’s shopping cart in the app. When the item comes in, the technician can go up and collect it, at which point the inventory level is updated.

THE REVIEW:

“I’ve tried other systems that have used Excel spreadsheets,” Bickett says. “A spreadsheet is not something that you can manage where there aren’t mistakes. In the old days, if someone needed more tape, I would make them bring the core of the last roll that they used so I would know that they really needed the tape. That was when I was able to be more involved. This gives me a solution where I have some visibility.” Bickett adds that in order to make the most of Nuventory, someone needs to be in charge of checking the materials out when they come in and a technician needs to come collect the materials. Bickett refers to this as his “gatekeeper.” Bickett says that if you leave materials out in the open, there’s going to be material loss because no one is tracking who takes what and how much he or she is using. With Nuventory, those levels can be monitored and each technician's usage is tracked.

THE ROI:

By using Nuventory, Bickett says his shops have cut their orders down to once per week. “That has taken 10 interruptions per week down to one,” Bickett says. On average, Bickett says that his locations have seen a 10 percent improvement in gross profit in materials. Bickett adds that even with a $150 investment per month for the system, the ROI is significant.

July 2017 | fenderbender.com 29


COLUMNS

THE BIG IDEA KEVIN RAINS

Off to a Good Start Win the morning, win the day Whether you're a morning person

or a night owl, there really is no substitute for getting off to a good start every day, both personally and professionally. Let’s take a quick look at both of those. On the personal front, it is important to develop a cluster of habits that give you energy and not just sap your energy. Stephen Covey wrote about this a long time ago and coined the phrase in his succinct chapter on self care with the phrase “sharpen the saw.” He drew that from the old adage about trying to chop with a dull axe and its diminishing return as the blade becomes duller. On the flip side, if you take a few minutes to sharpen the saw, the return 30 fenderbender.com | July 2017

on that small investment saves a lot of time and effort in the long run. There are four major categories where it’s important to sharpen the saw and developing a morning routine that hits all four can be a powerful way to start the day: 1. Physical. What is something you can do first thing in the morning to get your blood flowing? Maybe it’s a short walk or simply taking some deep breaths. Or perhaps, if you’re like me, you need to stretch your muscles. Find something that returns energy to you and doesn’t simply deplete it. 2. Mental. Our minds are like muscles and they, too, need to be stretched if

they are going to work long term. For me, this looks like reading something for 10-15 minutes that gets me thinking—so not the newspaper or social media! Those things have their place but the goal here is to stretch your thinking a bit. Perhaps there’s a challenge you’re facing at your shop and you want some expert advice. There’s no better—or less expensive—way to get advice than the price of a good book! I’ve really been enjoying listening to audiobooks on my morning commute lately through an app on my phone called Audible. 3. Relational. Who can you connect with and encourage through a short email that expresses gratitude? Or perhaps you’re more old school and like the


MICHAEL HOEWELER, THINKSTOCK

pen-and-paper route. No matter how you do it, taking those few minutes to encourage someone else and express gratitude will not only make their day, it will make yours, too! 4. Spiritual. Connecting spiritually can be something as simple as sitting in silence for a few minutes or reading a sacred text and praying. Of course, this one will vary from person to person based on personal beliefs. But what is important here is connecting with something (or someone) beyond yourself. At a minimum, reviewing core values and your vision of what your life could be like is important. Now, professionally. I recently interviewed someone for a manager’s

position in one of my shops and I asked them, “What are the first five things you do every morning after getting to the shop?” This question tells me a lot about their understanding and ability to lead a shop. I really liked the answer he gave and it gave me a sense that he knew what he was doing. I know many of us like to think that we have developed the best, most innovative way to lead a shop, but really, it comes back to executing consistently on some fundamentals. Those fundamentals are fairly consistent across all successful shops, with some variation based on local circumstances and the leader’s personality. Here are my “first five.” I’d love to hear yours, as well! 1. Print and go over the roster of every job in the shop by talking to each body tech individually. Some like to do this part as a team and both have advantages. This tells me where every car is in the process, if there are parts or sublets needed, and what’s heading to paint or detail. 2. Meet with the paint department and build a paint board of cars that need to be painted that day. This can be a little predictive based on what the body techs tell me they will be sending over to paint that day. 3. Build a delivery board based on all

the input I’ve gotten from the above that is visible to all managers, CSRs and detailers. This board operates as a road map for the day. These are the cars we want to deliver and drives a focus on getting these cars out the door on this day. 4. Meet with managers and estimators briefly to go over results for previous day and week, or even month to date. This is a short meeting and a quick way to know if we’re winning or losing against the measures and goals we currently have for touch time, revenue and closing ratio. This is also an opportunity to discuss any jobs that might be off track or need some special attention. 5. Respond to any urgent emails. This might be a customer concern or one of our referrals partners needing something. Creating these grooves in our day, both personally and professionally, ensures that we are consistently getting to the important work of taking care of ourselves and running an efficient operation. I’ve also found that on the days I do these basic things really well, the rest of the day tends to go much smoother.

KEVIN RAINS is the owner of CARSTAR Center City in Cincinnati and CARSTAR West Chester in West Chester, Ohio. He is also an industry consultant and founder of marketing website Body Shop 2.0. E M A I L : kevinrains@gmail .com A R C H I V E : f e n d e r b e n d e r. c o m /r a i n s

July 2017 | fenderbender.com 31


32 fenderbender.com | July 2017


The

2017 FenderBender

KPI Survey “Without KPIs, you're flying blind. And eventually you will smack a mountain.”

BY T R AV I S BEAN

PA G E 3 3 J U LY 2 017

That’s how strongly one contributor to the 2017 KPI Survey feels about the importance of key performance indicators (KPIs) to his or her business. And, for the fifth straight year, the annual survey results found by FenderBender confirms] that shop operator’s opinion: Those that track tend to perform at a much higher level; those that don’t, may hit a wall. Top industry performers have indicated in story after story that KPIs provide tangible, measureable views of their businesses. Roughly 200 shop operators responded to FenderBender's 2017 KPI Survey, creating a diverse, national pool of collision repair professionals that represent all segments of the industry and provide a unique snapshot of overall industry performance. And while no two shops in this survey are the same, there are important trends to note as you and your industry move forward. July 2017 | fenderbender.com 33


2017 FenderBender

KPI Survey

THE AVERAGE SHOP BUSINESS TY PE:

64%

Independent, single-location repair business R E G IO N:

40% Midwest

S HOP S I Z E :

29%

5,000–9,999 square feet

THE TYPICAL SHOP

Just over 200 industry professionals completed the KPI Survey, and, while they were evenly dispersed across all U.S. markets, the majority of respondents followed a distinct demographic pattern that also closely aligns with our overall readership.

S TA F F S I Z E :

42% 11+

A N N UA L R E V E N U E :

26%

$1M–$2.49M AV E R A G E K E Y-T O -K E Y C YC L E T I M E :

45% 5–7 days

AV E R A G E T OUC H T I M E :

44% 4–5 hours

AV E R A G E R E PA I R OR DE R :

50%

$2,000–$2,999 OV E R A L L G R O S S P R OF I T M A R G I N:

34% 40–49%

OV E R A L L N E T P R OF I T M A R G I N:

32%

RYAN STEIN

11–15%

34 fenderbender.com | July 2017


KPI TRACKING: MENTALITY

A look inside why some operators stress the importance of KPIs, while others choose to stray.

Overall Tracking Rates on the Rise Dating back to the 2013 KPI Survey, adoption of regular KPI tracking did not exceed the 70 percent mark—until 2017, that is. At 73% this year, 2017 not only represents a 6% improvement over 2016, but also marks the highest total in the five years this survey has been conducted.

The Mentality While KPI tracking rates are up overall, the reasons behind why business owners track or don’t track KPIs has remained consistent: The active shops can’t imagine improving daily operations without their measurements; and 27% cite a lack of time, manpower, knowledge or resources to effectively manage their businesses by these numbers.

T R AC K I NG P E R C E N TAGE S YEA R BY YEA R

2 017: 2 016: 2 01 5: 2 014: 2 01 3:

73% 67 % 66% 6 8% 70 %

73% T R AC K K PI s

27%

Q U E S T IO N:

Q U E S T IO N:

What is the significance of KPI measurement in today's collision repair industry, and what impact has it had on your business?

Why don’t you regularly track KPIs?

A NSW ERS:

A NSW ERS:

“In a production shop, KPI is everything. If you're not doing it, you're not reaching your shop’s true potential.”

“These numbers allow us to drill down within a category that we may be performing well in and tweak it even further.”

“We track our stats and other metrics so as to make course corrections quickly to ensure processes are as efficient and as effective as possible.” “Insurance companies are using KPIs to determine which shops are performing better than others and choosing based on those numbers.”

“It also helps keep estimators and technicians/ painters grounded and focused on impacts to the repair facility.”

DON'T T R AC K K PI s

“A management and tracking system is not currently employed.”

“Not enough time in the day.”

“As a small shop we spend our time optimizing our customer experience and high quality repairs.”

“I don’t fully understand it and know how to.”

“Haven't needed to. If it’s not broken, don't fix it.”

“I don't have enough manpower in our office.”

July 2017 | fenderbender.com 35


2017 FenderBender

KPI Survey

KPI TRACKING: TRENDS

A look at the trends affecting business owners’ willingness to track KPIs and how they’ve changed over 2016.

Independents Gain Steam While independent, single-location repair businesses have lagged behind their competitors significantly in their willingness to track KPIs, our 2017 results may indicate a new trend. Rates rose above 60% for the first time since 2013, and 2017 saw a 7% hike over 2016. This largely contributed to the overall rise in KPI tracking. K P I T R A C K I NG B Y B U S I N E S S

Independent, single location

64% 57%

MSO

93% 94%

Dealer-owned

79% 88% 100% 100%

Franchise 2017

2016

Smaller Shops Gaining Ground While the past four years have shown that the larger a repair business is—in terms of staff size and total sales—the more likely it is to track KPIs, 2017 found that shops with six or less employees and annual sales below $1 million are nearing the rates of larger shops. A N N UA L S A L E S

1–2

63% 30%

Under $250K

50% 23%

3–4

54% 36%

$250K–$499K

56% 36%

5–6

70% 51%

$500K–$749K

72% 64%

7–8

70% 70%

$750K–$999K

62% 53%

9–10

74% 85%

$1M–$2.49M

77% 78%

11+

81% 82%

$2.5M–$4.9M

79% 88%

$5M+

87% 89%

2017

2016

2017 36 fenderbender.com | July 2017

2016

THINKSTOCK

S TA F F S I Z E


Individual KPIs Still Lagging While overall tracking rates are on the rise, 2017 marked yet another year where operators tend to show some KPIs more love than others. While cycle time, average repair order and gross profit margins are tracked regularly across the board, productivity and efficiency tracking rates hover around 70% and 85%, respectively. WHAT IS BEING TR ACKED? AV E R A G E R E PA I R OR DE R :

97%

JOB - S TA RT-T O - JOB - C OM P L E T ION C YC L E T I M E :

Non-DRP Shops Close the Gap While FenderBender's KPI Survey results continue to show that shops reliant on DRP relationships are more likely to track KPIs, this year saw non-DRP shops closing the gap. While only 35% of shops with 0 DRP partners tracked KPIs in 2016, that rate rose to 66% in 2017, contributing greatly to the overall rise in KPI tracking.

96%

K E Y-T O -K E Y C YC L E T I M E :

95%

G R O S S P R OF I T M A R G I N ON PA RT S S A L E S :

94%

T OUC H T I M E : P E R C E N TA G E O F WO R K F R O M DR P A G R E E M E N T S

0%

67% 38%

1–29%

68% 67%

30–59%

72% 86%

60–89%

86% 78% 100% 100%

90%+ 2017

93%

G R O S S P R OF I T M A R G I N ON M AT E R I A L S S A L E S :

92%

OV E R A L L G R O S S P R OF I T M A R G I N:

91%

G R O S S P R OF I T M A R G I N ON L A B OR S A L E S :

89% CSI:

2016

88%

N U M B E R O F DR P PA R T N E R S

N E T P R O MO T E R S C OR E :

0

66% 35%

87%

1–3

71% 75%

E S T I M AT E C L O S I NG R AT IO :

4–6

75% 86%

7–9

100% 84%

10+

85% 91% 2017

2016

87%

T E C H N IC I A N E F F IC I E NC Y:

85%

T E C H N IC I A N P R ODUC T I V I T Y:

70%

July 2017 | fenderbender.com 37


2017 FenderBender

KPI Survey

Better Touch Time = Better Cycle Time As noted by the president of Autobody Management Solutions, Rich Altieri, in the January issue of FenderBender, the industry has long focused on cycle time, which, as he says, “is too dependent on vehicle mix and crash severity.” Touch time, however, represents the number of hours per day technicians physically touch a car. When waste is eliminated and touch time improves, he says cycle time does as well. And the 2017 FenderBender KPI Survey data backs up that claim.

The 2017 survey looked at 14 metrics many identified as being critical to business success, and several of them stood out— in both good and bad ways.

Supplement Ratios on the Rise This is the second year that the KPI Survey has tracked supplement ratio, and we’ve seen a massive increase in the percentage. While just 44% of shops saw a supplement ratio above 16% in 2016, that number rose to 56% this year. To no surprise, shops with lower supplement ratios had drastically better cycle times than those with high supplement ratios.

Less Emphasis on Gross Profits While the percentage of shops tracking gross profits has remained steadily high in each of the previous four surveys, the 2017 survey saw the percentage of shops failing to track gross profits essentially double. In particular, the percentage of shops failing to track gross profits on labor sales rose 6% over 2016. This overall trend may have coincided with dwindling net profit margins—while 85% of shops had a net profit margin over 6% last year, only 78% hit that mark this year.

38 fenderbender.com | July 2017

AVION ROBINSON

THE BIG PICTURE

NPS Awareness Grows Unlike traditional CSI scores, the net promoter scores (NPS) measures how likely a customer is to refer a business. Understanding how to determine and maximize your NPS can help any shop improve its customer service experience and overall sales. Yet, for the fifth straight year of FenderBender’s KPI surveys, shop operators are much more likely to track CSI over NPS. However, 2017 saw a 5% uptick over 2016 in participants tracking NPS, which coincided with 41% of shops eclipsing the $2.5 million mark, compared to just 26% of shops accomplishing that last year.


2017 FenderBender

KPI Survey

TOUCH TIME VS. CYCLE TIME

ANNUAL RE VENUE VS. NPS SCORE

SUPPLEMENT R ATIO VS. CYCLE TIME

PERCETAGE TR ACKING VS. NOT TR ACKING GROSS PROFIT

Touch Time

Key-to-Key Cycle Time Under 8 Days

Key-to-Key Cycle Time Over 8 Days

2–3 hours

48%

52%

4–5 hours

82%

18%

6–7 hours

88%

12%

Annual Revenue

NPS Score over 90%

Under $250K

57%

$250K–$499K

50%

$500K–$749K

65%

$750K–$1M

82%

$1M–$2.49M

77%

$2.5M–$4.99M

82%

Supplement Ratio

Key-to-Key Cycle Time Over 8 Days

Below 10%

16%

11–15%

19%

16–20%

34%

20%+

45%

Gross Profit Category

Percentage Not Tracking in 2016

Percentage Not Tracking in 2017

Overall Gross Profit Margin

4%

9%

Gross Profit Margin on Materials Sales

4%

8%

Gross Profit on Parts Sales

5%

6%

Gross Profit Margin on Labor Sales

5%

11%

July 2017 | fenderbender.com 39


2017 FenderBender

KPI Survey

TECHNICIAN STATS

While technician efficiency and productivity were among the least-tracked KPIs in our survey, our data demonstrated that those that do track, tend to perform very well.

PERFORMANCE

79% or lower

8%

15%

I don’t track technician productivity 100-119%

16%

160+%

13%

4%

99% or lower

I don’t track technician efficiency

30%

23%

25% Both waterborne and solvent-based

8% 100-109%

120-139%

140-159%

11% 90-99%

AV E R A G E T E C H N IC I A N P R ODUC T I V I T Y

AV E R A G E T E C H N IC I A N E F F IC I E NC Y

80-89%

110+%

23%

24%

HOW THE Y’RE EQUIPPED

8%

Waterborne

Solvent-based

42%

T Y P E OF PA I N T S P R AY E D

40 fenderbender.com | July 2017

50%

No

35%

UTILIZES E L E C T R O N IC M A NAGEMENT SYSTEM

Yes

65%


45%

73%

-7 days

T OUC H T I M E :

44%

5 hours

T R AC K K PI s

R E PA I R OR DE R :

0%

00-$2,999

S S P R OF I T M A R G I N:

4%

get more

0-49%

T P R OF I T M A R G I N:

32%

KPI INSIGHT

11-15%

THE COMPLETE REPORT

The Avera

If you think this feature story is interesting, check BUSINES out the Complete Report. It contains enhanced insight including results that are broken down by shop type, exclusive comparisons, and even Independent, si repair bu more data so you’re completely informed.

64

WHY

27%

R EGI

40

Midw

D ON' T T R ACK

S HOP S

29

5,000-9,999 s S TA F F

42

11+

A N N UA L R

26

$1M–$2

AV E R A G E K E Y-T O -K

45

CONTINUE LEARNING FenderBender.com/2017KPIsurvey

5-7 d

AV E R A G E T O July 2017 | fenderbender.com 41

44

4-5 ho


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42 fenderbender.com | July 2017


WORK SMARTER

strategy IDE A SHOP CUSTOMER SERVICE CASE STUDY TECH+TOOLS

Tapping Employees for Ideas Creating open dialogue and a forum where new ideas can be expressed has been the key for continuous improvement at Collision Concepts. —

THINKSTOCK

PAGE 48

July 2017 | fenderbender.com 43


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CollisionEducationFoundation.org 44 fenderbender.com | July 2017


S T R AT EGY

IDEA SHOP

Implementing a Recycling Program

THINKSTOCK

A Baltimore shop owner explains how he’s trying to reverse negative industry stereotypes by creating an eco-friendly shop Around 80 percent of a car can be recycled, according to a 2016 report in personal finance website The Balance. In fact, according to the Steel Recycling Institute, automobiles are the most recycled consumer product in the U.S. With so many parts and materials that have the option of being recycled, it only makes sense that collision repair shops would make an effort to recycle anything possible. However, fines issued every year by the Occupational Safety and Health Administration (OSHA) are proof that many collision repairers are not doing so properly. The environmental impact of recycling is not lost on Kary Kuo, owner of Bumper Globe Collision Centre in Baltimore. Kuo, who took an environmental science course in college that left an impact, says that reversing the negative image that many people have of collision repair shops has always been important to him, and emphasizing recycling is one of the ways that he aims to do that. "The auto body industry is not known for being environmentally responsible,” Kuo says. “I felt like customers would be more inclined to come to our shop if we displayed this.” Beyond reversing the stigma, there are rules in place to which shops need to pay attention. Many hazardous materials used in collision shops require the following of rules to properly dispose of them, according to the Environmental Protection Agency (EPA). Shops that are not disposing of materials correctly could face repercussions, such as a fine from OSHA. Kuo says that when he opened his shop in 2007, he didn’t think most of the surrounding collision repair shops were up to par when it came to environmental practices, allowing him to set his shop apart. Kuo has made recycling a practice in his shop since day one, which he feels has helped appeal to customers and attract more business. In 2009, the shop was a recipient of a Green Business Award from Baltidome, a green news blog, for its eco-friendly

practices, which included a building renovation comprised of 50 percent recycled material. The shop has been written up by local magazines for its eco-friendly efforts and was even contacted by Maryland Public Television for a documentary opportunity.

metal bottles go in blue and plastic in yellow. We use eye-catching labels above the bins in the lobby to encourage our customers to recycle.

AS TOLD TO TESS COLLINS

and plastic every week. We let him keep all of the money from the metal scraps in exchange for picking up and disposing of the plastic. Safety-Kleen handles the solvent and waterborne waste byproducts.

It is a daily effort to get everyone involved in recycling items in the fast-paced world

of collision repair. We make every effort to set time aside to emphasize recycling. By getting everyone on board, it keeps the shop clean and organized and allows everyone to feel good about being environmentally conscious. In our shop, we recycle papers, metals and plastic. We also recycle solvent

and waterborne byproduct and make sure that each is categorized separately. Each bin has a sign that indicates what should be placed inside. We have commercial laundromat plastic bins to handle large volumes of cardboard, metal and plastic. These bins take up a large amount of space, especially for a medium-sized shop like ours with limited parking spaces, so we have to be creative and use the space more efficiently when the time comes for it to be picked up. We do this by keeping up with when the pick ups will happen. We wait until right around the pickups time to haul the bins out to the lot. Everyone knows the schedule for when recycling items will be picked up. When staff is disposing of solvent and waste, it’s required that they wear

National Institute for Occupational Safety and Health (NIOSH) approved filtering respirator masks and protective latex gloves. We

have

color-coded

recycling

bins

designated for papers and plastic that are visible around the shop and lobby area. Paper goes in the green bins,

The city picks up recycling items every Friday. We have someone pick up metal

Sometimes, the cardboard, bags of paper shreds and bottles are not picked up

on the scheduled day. We make every effort to find out if these will be picked up or not ahead of time. If not, we return the materials to our controlled environment inside of the shop until the next scheduled pick up. Plastic bumpers pile up quickly, so we try and haul these to the recycling center every other week. If I notice that something wasn’t recycled

or that the staff isn’t keeping up with our efforts, I make a note to discuss it in a meeting and emphasize the importance. It’s always good to be environmentally responsible. We always get comments

from our customers on how unique Bumper Globe is when compared to other stereotypical body shops. Beyond recycling, we’re planning on retrofitting our spray booth with T8 LED lights. The old T8s that have mercury gas in them will need to be properly disposed of at a recycling center. It takes money to become eco-friendly, but there’s a long-term ROI. For example,

using LED light retrofits has cut our utility bill by at least 60 percent. Shop owners need to look at the bigger picture and the benefits of having more efficient equipment. You’ll see a night-and-day difference in your utility bill if you change a few practices. July 2017 | fenderbender.com 45


S T R AT EGY

TECH+TOOLS

Mining Your Management System’s Underused Functions The keys for unleashing your management system’s untapped potential B Y K E L LY B E AT O N

Mechanicsville, Va., has utilized shop management systems since the early 1990s, when he employed the use of 3M’s ARMS program. And, if there’s one thing Dorn has learned from talking to shop operators, it’s that the industry still has a long way to go when it comes to mastering management software. According to Dorn, most shops do just enough with their management systems to survive, without realizing that lack of thoroughness has a ripple effect for others downstream. “Spending the extra five minutes [inputting data into management software] can save people a lot of time,” Dorn notes. “For me to take that extra five minutes to do this saves this person 20 minutes, and saves this customer an hour’s worth of hassle.” 46 fenderbender.com | July 2017

TIPS FOR TRAINING ON A MANAGEMENT SYSTEM Steven Tisdale, the longtime owner of Collision King Repair Center in Lubbock, Texas—which has a reputation for being a leader in high-tech collision repair in west Texas—provides insight on training for a new shop management system. I would recommend this: Find a 20 group, or someone outside your market, and visit their shop. We visited shops and saw how the management system worked in real time. I mean, any sales guy can come in and say, "Oh, it can do this and this," but when you get out on the shop floor and in the real world, it's a little different. How quick is it when you're doing 400 ROs per month? A lot of shops outside of your competitive area are very willing to welcome you and say, "Hey, this is how we do it." So, just shadow them for a day and pick some things that you can integrate into your own system.

THINKSTOCK

Barry Dorn, owner of Dorn’s Body & Paint in


In 2017, management systems—if used properly and to the full extent of their capabilities—can help ensure that shops are operating in the most efficient manner possible. And, modern management systems drive accuracy, not just efficiency, when it comes to documentation of shop data. Additionally, management system software can help drive best practices. But, if collision repair facilities don’t track everything they can through their management systems, it can make it difficult to diagnose where bottlenecks originate on a shop floor. Management systems can take time to master, though they offer numerous valuable functions. All of which begs the question: How, exactly, can shop operators utilize their management systems to the full extent of their capabilities? FenderBender spoke with multiple industry veterans to gain insight on that issue. Underutilized Functions Some shops experience long learning curves when it comes to adapting to management systems. Yet, the investment in time, effort and money is worth it, in the minds of many in the industry (and that aforementioned learning curve can be overcome by taking advantage of vendor training, tutorials and shop visits to areas outside of your market). These days, most management systems have a “single sign-on” setup. In other words, the days of having to switch back and forth between an estimating system and your shop management software are over. Key information, such as capture rates, can be tracked without having to rely on multiple systems. But owners need to go beyond simply using their management systems to take note of completed project milestones, notes Kelly Grossenbaugh, director of Elevate Services, the automotive solutions delivery group at CCC Information Services. Otherwise, that’s simply an elementary use of a rapidly evolving technology. Most industry experts agree that body shops should be using their management software for the following tasks: Obtaining Customer Data. Yes, the average

driver will only require the use of a collision

repair shop once every seven years. Still, body shops need to gather customer information (like email addresses) to stay top of mind for those potential customers, Dorn notes. And, fortunately for shop operators, most management systems, like those offered by CCC, Mitchell International and the like, virtually collect that information for shops, due to modern functionality. Inputting customer data within at least 24 hours of a visit can save businesses countless inefficiencies later. An expansive customer database can also help a shop utilize that information later, providing updates on their businesses (regarding recently earned

“THERE’S A THOUSAND DIFFERENT WAYS THAT CUSTOMERS WANT TO BE HANDLED.” BARRY DORN OWNER DORN’S BODY & PAINT

industry awards, perhaps) through measures like email blasts, Dorn notes. And, while gathering such customer information can occasionally be difficult—as consumers grow more and more wary of modern issues like identity theft—those obstacles can be overcome. Your shop could simply require the information from customers, similar to how patients at dentist offices are instructed to fill out paperwork prior to appointments. Once you have obtained key customer information within your management software, you can use that data to keep clients in the loop during the repair process. Armed with that data, your shop can inform customers in as efficient of a manner as possible, and in the style a customer prefers, whether it’s email, phone call or text messaging. “There’s a thousand different ways that customers want to be handled,” Dorn says. “You have to give them—each and every one of them—a customized approach, not a blanket approach … You want them to Catering to Customers.

have the ability to have as much information as they want.” You’re probably aware of management software’s ability to aid in the parts procurement process, but you might not be aware of the extent to which modern technology can streamline that entire undertaking through accounting. Parts ordering invoices can easily be received electronically, for example. And consider this: If you’re still ordering parts via phone calls and not thoroughly tracking that, you’re far more likely to forget to add that to the subsequent estimate, Grossenbaugh says. Tracking Parts Orders.

The modern management system is one source to which all employees can turn. As such, scheduling can be tracked in one place all the way through to the CSI stage, so that one shop employee doesn’t have to keep track of each piece of the puzzle. That helps keep the entire staff on the same page. Tracking Scheduling Completely.

Documenting Production. It’s

Blueprinting,

then

easy for collision repair facilities to get caught up in focusing mainly on whether they hit the dollar amount they were seeking on repairs. There’s also value, however, in drilling in to discover if any element of a vehicle’s repair could’ve been improved upon, Grossenbaugh says. After all, many shops keep tabs primarily on the start and finish of the repair process, leaving them in danger of losing focus on key elements in the middle— elements that a shop management system can track on your shop’s behalf, if the technology is used correctly. A management system allows for true tracking of the blueprinting process, helping to ensure that all items on the initial ‘todo list’ are crossed off. From there, full production phases can be monitored closely to determine where a facility might be susceptible to a bottleneck, Grossenbaugh notes. Dorn suggests taking your shop’s data implementation process with regard to its management system and continuously fine tuning it, “and taking things that may not have been used and utilizing it and streamlining it to make the communication process better—and to give your team more value,” he says. July 2017 | fenderbender.com 47


S T R AT EGY

CASE STUDY

Creating a Forum for Communic 48 fenderbender.com | July 2017


a r Open ication How Collision Concepts created improved work dynamics by empowering staff BY NOURA ELMANSSY

For many shop owners, Erv Guyett’s business might sound like a dream: The Lincoln, Ill., shop was comfortably humming along with 15 employees generating $2.5 million in annual revenue out of a 13,500-square-foot facility. Staff turnover was virtually nonexistent and his technicians were consistently hitting efficiency benchmarks of 175 percent. Despite that success, there was one problem looming over Collision Concepts: The business was solely reliant on Guyett for its continued success. New ideas were hard to come by from anyone besides Guyett, leaving him feeling a distinct separation between leadership at the shop and “the other side of the wall." In an effort to get valuable feedback and new ideas to freshen up his shop from every department, Guyett decided he would begin with the internal flow of processes, namely one of the core fundamentals of any shop: communication. Facilitating better communication, however, required coming up with a system that ensured all voices from the shop were represented and establishing a proper channel through which feedback could be provided.

July 2017 | fenderbender.com 49


S T R AT EGY

CASE STUDY

The Backstory Guyett founded Collision Concepts (then under a different name) in the late ’90s with a business partner, Dick Taylor, whose interest Guyett eventually purchased a few years later. The shop was initially located in a neighboring town before outgrowing its facility’s space. In 2003, Guyett decided to build his own stand-alone facility in Lincoln. But coming to a smaller town meant he had to prove himself, especially since the market didn’t have a strong repair shop. “People didn’t understand what we were trying to do,” he says. “Lincoln was really needing someone that was going to, you know, really pay attention to what the customers’ needs were and kind of cater to the customer.” After starting with six employees and doing $1 million in revenue, Collision Concepts now has 15 employees and does $2.5 million in revenue. The Problem While Guyett was able to bounce ideas around with his business partner during the first years of ownership, after becoming the sole owner, Guyett was then the only one in the business bringing new ideas to the table. As the shop continued to grow, however, he realized he had 15 other staff members available whose insight he wanted to tap. He knew he wasn’t getting the feedback that he needed from the technician standpoint, but also faced the obstacle of trying to get 15 different people together to start thinking of different processes that the shop could start implementing. The issue wasn’t getting the entire staff to provide the feedback, but it was getting them all in one place at the same time, a task that was nearly impossible while still getting work out on time. Guyett had to ask himself: How could he maximize his staff’s input without having to get everyone together?

50 fenderbender.com | July 2017

The Solution Guyett first considered how he could condense feedback from 15 different people. Eventually, he settled on creating an advisory committee, where select members of each department are asked to bring agenda items to the administrative staff to help with compiling meeting topics. The advisory committee functions as follows:

1

Choose a representative from each department (body, refinish, detail, parts, estimator, front office). This can either be the manager or general team leader in each group and, of course, shop managers and owner are also representatives.

2

Each representative is responsible for collecting feedback from his or her respective team members by either setting a deadline for when they need to report to the representatives or having individual team meetings.

3

4 5

The committee meetings, which take place at least once per month, involve hearing from each person and going over the major takeaways they have heard from their individual teams. The major points are considered agenda or task items. The committee came up with four pillars—teamwork, lifetime customers, quality and profitability—to build the meetings around. The pillars also serve as a guideline to follow when pitching an idea to the advisory committee, as the idea has to fall within one of the four. “If we were to take this idea that comes from the detail department, for instance, and implement it and it becomes part of our workflow and part of our process, who’s affected by it? Is our team affected by it? Is our customer affected by it? Is our overall quality affected? Does it have an effect on our profitability?” he says.

The general goal of the meeting is, by the end, to have some sort of an action plan to implement or solve the agendas items that were initially discussed.

Work on crossing off as many task items in a timely manner. Task items can range from everything as simple as sorting out paperwork to finding new ways to be efficient in the shops.


Expert Advice

COLLISION CONCEPTS

Executive coach and keynote speaker Patrick Donadio has helped business owners in many industries work on bettering communication. As a specialist in leadership and communication for over 30 years, he has developed tips for helping both you, the communicator, and the receiver have a better result. He outlines his six keys to making an IMPACT, or, becoming an effective communicator.

LOCATION:

MAKING AN IMPACT

LINCOLN, ILL. SIZE:

13,500 SQUARE FEET STAFF:

15

AVERAGE MONTHLY CAR COUNT:

70

ANNUAL REVENUE:

$2.5 MILLION

INTENTION: Establish your intention for the communication. Why are you wanting to have this conversation? What do you want to achieve? The intention goes hand in hand with the message, according to Donadio. Not taking an extra 30 seconds to think about your intentions typically results in a weak message. MESSAGE: Once you know what you want to achieve, create a message that will reflect that. PERSON: Think about with whom you are communicating. Don’t assume that everyone is going to digest information the same way. Help the receiver by making sure you leave them enough time to take in the information. ACTIVATE: Engage your listener. Give examples, share stories or use visuals. Visuals help you communicate better. Donadio says something we tend to forget about are our non-verbal gestures. Make sure your gestures, tone and non-verbals match your message. CLARIFY: More often than not, there are miscommunications in communication. Just remember that the meaning of the message comes from the sender (you), not the receiver. TRANSFORM: There are two kinds of transformation, says Donadio. External transformation is when you have set goals or deadlines to achieve your message or the purpose of your communication. Internal transformation is when you or the receiver are able to not let certain beliefs get in the way of you taking action.

Holding these advisory committee meetings allows Guyett to receive the type of communication that he wasn’t typically getting before. Guyett also says that the committee has been a great way to get his more reserved staff members to participate in giving feedback and ideas. “It’s given us an opportunity to kind of learn more about each other and how certain things—not only how certain things, but who certain things affect within our organization,” Guyett says. “Whether it be our team itself, whether it be our lifetime customer, whether it be the quality we try to exhibit, or whether it be the overall profitability of our organization.” The Aftermath Since the first meeting in January 2017, 27 task items have been added to the agenda, 22 of which have already been implemented. Guyett says that while some tasks are small, such as a change in the flow of paperwork distribution or new ways of dealing with customer concerns, he is proud that feedback is being actively taken and executed. After the development of the committee, the shop now has a new slogan: “Collision Concepts is the best decision for your collision.” During the April meeting, a member from the body team recommended that the shop participate in com-

munity events. So, Collision Concepts registered for an event through The Humane Society. Guyett says they plan on making T-shirts to identify themselves at the event. “It’s kind of neat that you get that from the technicians,” Guyett says, as he explains that he would not have received similar feedback a year ago. “We’ve got them thinking down a whole different line now.” The Takeaway The biggest takeaway: “I am confident that I have a team that is really working as a team,” Guyett says. And now that the ideas are not all just his anymore, he’s finding that his team is willingly giving more consistent feedback. “We have opened up kind of a whole new avenue of getting results without having to come up with all of the ideas and implementation of things,” he says. And most importantly, he feels that his staff is viewing his shop as a career, “not just a place to land.” “We’re working on some things that have core value to them and giving the employees an opportunity to be a part of those things,” he says. “It’s very easy to sit in this seat and tell everybody what they need to be doing … but it’s a heck of a lot easier when you have a team of people that are working all for the same common goal.”

July 2017 | fenderbender.com 51


S T R AT EGY

SALES+MARKETING

Build a Better Online Presence Building a successful online presence begins with a good website

It’s 2017, and the Pew Research Center

says 77 percent of U.S. adults own smartphones, meaning social media is one extra box a shop owner must check off when it comes to marketing. But when it comes to building an online presence, you have to start with the basics—like a website. For shop owner Jason Dupree of Xtreme Auto Collision in Raleigh, N.C., building a better website was something he knew he needed to do, but he was still settling for an outdated website he 52 fenderbender.com | July 2017

had for years. That meant little SEO, an ineffective sales path and no updated marketing tactics, such as pay per click. The result? Few website visitors were converted into customers, meaning Dupree’s website was essentially acting as an online brochure. And that simply won’t cut it anymore for today’s digital-savvy customer, says Margaret Klemmer, chief business development officer at industry marketing firm Autoshop Solutions. Shops have 3–8 seconds to make an impression on-

line, she says, and to make that impression, the content needs to be catered to your market and clientele. That means that a website created by a friend or family member—like Dupree’s old site—will not help make that impression. It’s how he ended up with what was “the most basic website you could ever imagine”: a domain name and a main page that had a couple points about what services the shop performed, no tabs, FAQs, personal information or reviews.

THINKSTOCK

BY NOURA ELMANSSY


Klemmer—whose work with Autoshop Solutions provides social media, marketing and website guidance for both mechanical and collision repair shops—concedes that collision shops do have a slight challenge to overcome when it comes to their online presence because many customers have likely never stepped foot in a body shop before. “You can’t just have a website and think you’re going to do great,” she says. Make sure you’re getting the website your business actually needs, Dupree says; do the necessary research, shop around and ensure your web provider is a true partner in the business. Since redoing his website a couple years ago, Dupree says he’s learned a number of lessons along the way; key fundamentals that he believes all collision repair shops should keep in mind with their overall web presence. Dupree and Klemmer outline their top tips for creating an exemplary website. Clear calls to action One of the most important components that should be on every website is clear calls to action that include contact information. Klemmer says she still sees websites without phone numbers on the homepage. Without a visible phone number or address, you’ve already lost seconds of impression time. So even if customers have decided to use your shop, their searches for the obvious may ultimately turn them off. For Dupree, calls to action are exactly what drives his website. Right at the very top of his site is an address and phone number. In the middle of the page is a “make an appointment” button, making things easy to navigate for customers. Klemmer also says that if the site has a mobile version, make sure there is a clickto-call option: Don’t make the guest have to type in the number and switch back and forth between the browser and keypad. Same goes for the address, she says. If a guest clicks on the address, a map should automatically come up.

These are the essential first steps to building a successful website, because if the client can’t contact you easily, there is no point in looking into what you have to offer. Content, content, content The content on the site should be uniquely written for the shop, Klemmer mentions. The point of the website is to provide the most relevant information for the person searching. Klemmer also suggests finding ways to connect emotionally and aesthetically with the customer. To have the website emotionally connect with the client, ask yourself these questions: How are you going to help this person through this stressful time? How can you communicate that on the first page to help the viewer understand that you’re there to help? In addition, make sure you list any additional services or relevant information to ensure that you are there for the guest. Things like loaner cars, accreditations and service recognitions are all examples of features that, if listed, can only help the website. “I had those goals and achievements, but no one knew I had them,” Dupree says. Dupree says that the purpose of having all the relevant information on the homepage is to help the customer make an easy decision, which is something his old website lacked. When it comes to aesthetics, Klemmer says that pictures are very important. A gallery of before-and-after photos are key for collision shops—something Dupree has on his website under the “gallery” tab—especially if they cater to the higher-end vehicles. And finally, a simple photo of your staff smiling or a customer interaction is always a crowd favorite. Mobile-responsive site According to Google, 80 percent of people who use the Internet use a smartphone to access it, and 39 percent of peo-

ple search using only their smartphone during an average day. With the rise of smartphones and tablets, it’s important that whatever website you build appears on all types of devices. According to Klemmer, building a mobile-responsive site is not only beneficial to your business, but is even now required by Google. Without having the ability to be pulled up on a device other than a computer, your site is both losing its reach to customers and limiting your Google ranking, she says. According to Klemmer, if the search is being done from a mobile device, Google wants to display the mobileresponsive sites first. This may result in your site not appearing in the first few pages of a search. Having a mobile-responsive site consists of one set of content that scales to whichever device is being used and can automatically adjust to the screen size of the device, Klemmer says. Being mobile friendly not only boosts your chances of being seen, but allows the customer easy navigation through the website and accessibility at any location. Highlight reviews Finally, Dupree says clear testimonials that not only attest to customer service, but also the quality of work, are crucial. For Dupree, having reviews on the website has positively impacted his business and with a 4.9-out-of-five-star rating on Google, he believes the future will be built on reviews. “My website now is cozy,” Dupree says. “People know about us now and I do think I am that thorn in my competition’s side.” The reviews not only help aesthetically, but also bring you one step closer to helping that customer make a decision to visit your shop. “You’re competing for the next business that does the same thing you do,” he says. “I think nowadays you need to really keep things edgy and innovative to catch customers’ interest.” July 2017 | fenderbender.com 53


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COLUMNS

ON THE BUSINESS MIKE ANDERSON

You Don’t Know What You Don’t Know Make research part of your standard process

MICHAEL HOEWELER, THINKSTOCK

We all know how to fix cars, right?

I mean, that’s what you and your teams do every day. And you might see certain vehicles with certain problems again and again and again. So, we must know all the correct processes to repair those, right? I mean, there’d be no reason to look up the OEM repair procedures, right? Wrong. If I’ve had the pleasure of meeting you on my travels, I’m guessing you’ve heard me say this: We must—and huge emphasis on the word must here— research OEM repair procedures for every repair. There’s no leeway here. But, my friends, I don’t have to tell you that this isn’t being done. I’ve seen a number of surveys (including my own “Who Pays for What?” Survey) that say somewhere between 17 and 20 percent of all shops research OEM repair procedures on every repair. That’s a huge concern for our industry, as it’s shops, technicians and insurers that aren’t taking the time to look up the correct procedures. I can already sense some eyes rolling out there. If we’re doing the same repair on the same vehicle every day, we know the procedure; why waste valuable time in looking it up? If that’s what you’re wondering, here’s an example: Let’s say you you replaced a quarter panel on a certain vehicle six months ago. You looked up the procedure, and the manufacturer required the roof to be replaced as well. You followed that guideline. Good work. All done. Now, that same vehicle with that same issue comes into your shop today, but maybe the manufacturer two months ago amended that repair information to include sectioning procedures that mean you don’t have to replace the roof. The bottom line is that you don’t know what you don’t know. And the only way to ensure we repair vehicles correctly every time is to research OEM repair procedures every time.

OK, that ends my speech—but it doesn’t put an end to this topic appearing in this column. You see, one of the reasons I brought it up is that even among shops that want to do the proper research on each repair, there’s often a roadblock getting and interpreting the information. I get emails all the time asking where OEMs have diagnostic scanning information, for example, or how to understand the differences between specific markings and formats within the procedures for each OEM. These are valid concerns, because if you’re not that familiar with these repair procedures, it can be daunting to go in and quickly find the info you need. For instance, let’s look at single-use parts really quickly. The fact is that there are a lot of shops incorrectly handling these parts, even those that do look up the proper repair procedures. Yes, OEMs have parts graphics we can use to get this information, but single-use parts aren’t easy to identify. BMW uses the word “replace” to identify them. Ford uses a trash can symbol. Nissan is a black circle with an “X” in it. Toyota is just a black circle. If you only work on one BMW every couple months, how would you know that? There are a number of ways to find repair information. Fortunately, a lot of

it is available through your information provider—but not all of it is. One of the best resources out there is a website called OEM1Stop (oemonestop.com), which I’ve written about here before (“Finding Repair Information Solutions,” February 2016). The site offers quick links to each OEM’s site. Some require subscriptions or fees for access; some don’t. That site is a great starting point, but you then need to understand how to use each OEM site to its maximum capacity. So, here’s the plan: Moving forward, I’m going to do a series of columns explaining the different sites, taking on one OEM each column and explaining the ins and outs of its offerings. It’s one thing to say, “Here’s the information.” It’s a far different thing to actually learn how to use it to your benefit—and keep this research phase of the repair process from becoming a drain on efficiency. Let’s get out of this cycle where we sit back and assume we know the correct procedures, or that doing proper research will only hinder us in an industry too often only judged by speed. Let’s admit that we don’t know what we don’t know, and that the only solution is to make research part of our standard processes. Let’s change now.

MIKE ANDERSON is the former owner of Wagonwork Collision Centers in Alexandria, Va., operates CollisionAdvice.com, a training and consulting firm that assists shop operators nationwide. He is also a facilitator for Axalta Coating Systems’ 20 Groups in the U.S. and Canada, and is an Accredited Automotive Manager.

E M A I L : mike@collisionadvice.com A R C H I V E : f e n d e r b e n d e r. c o m /a n d e r s o n

July 2017 | fenderbender.com 55


Seizing Opportunity Twenty-five-year-old Chris Williams has already made an impact in the short few years he’s been in the industry.

56 fenderbender.com | July 2017


S H O P TA L K

CHRIS WILLIAMS

“I SEE A VEHICLE AS MY CANVAS.” CHRIS WILLIAMS, THE LEAD PAINTER AT DALTON CARSTAR SOUTH, APPLIES HIS TENACITY AND AIMS FOR PERFECTION IN HIS DAY-TO-DAY TASKS PHOTOGRAPHY BY KEVIN WRIGHT

July 2017 | fenderbender.com 57


S H O P TA L K

CHRIS WILLIAMS

C

hris Williams began his career in the industry at 14 years old. He started working as a shop helper at one of Ken’s CARSTAR shops in Dalton, Ga., but quickly moved up to an apprentice position in the paint department. All the while, he balanced being a high school student at Whitfield County Career Academy in Georgia and working a job. As a student at Whitfield County Career Academy learning about automotive technology, Williams had this desire to push himself to learn more about collision repair. This desire for knowledge led him to compete in the automotive refinishing technology category of the 2011 SkillsUSA competition, held in Kansas City, Mo. He was the third-place finisher in this national competition. Fast forward to Williams at age 25, and he’s now the lead senior painter at Dalton CARSTAR South, where he’s made a widespread impact. “He is the leader in the paint department, he averages 150 percent efficiency,” shop owner James White says. “Any questions that someone has in regard to a vehicle going through the paint process, he is the guy that has all the answers.” A S T O L D T O K AT H L E E N S A N D OVA L

I started out from the bottom of the totem pole, like most people. But, I’ve always had

an inkling for tinkering with anything that has wheels. When I started working at the shop, I was fascinated by the idea of reversing the effect of a collision. I helped the main techs in the shop, but I wanted to learn how to do what they were doing. I was the gofer— the person who helps with everything, the guy who catches everything. If someone needed a hand, I would help them out. Then I migrated to the paint department, where I worked as a helper for the lead painter. Two years later, Ken’s CARSTAR branched out to the Dalton location and James asked me to be the lead painter there. When he asked me to be the lead painter, I feel like it came upon me quick. I didn’t see myself as good as my boss thought. Here I am four years later, though. Time just flies by. Usually, we have our morning meetings at 8 a.m. We talk about what needs to get done

in the day. During our morning meeting, service advisors will come through and I’ll check in with them and let them know how things are going. After our morning meeting, my helper, Justin, pulls the vehicle we need to get painted first thing in the morning and starts the prep work. He’s been working here at the shop for 7–8 months now. We actually graduated together and after my former helper moved to Tennessee, I reached out and asked him if he was interested in the job. He’s not very familiar with the industry, so I’m teaching him everything I can. While he’s pulling the car for me, I work on matching colors and getting sealers ready. I

58 fenderbender.com | July 2017

use the computer to help with that. I enter the paint code into the database and it pulls up the colors I need. If I can’t get any good color chips, I start doing sprayouts. Doing sprayouts helps me see how much I need to adjust a color, so that it matches the original paint of the vehicle. I will do sprayouts until I get an acceptable color match. I also look over the repair order and make sure everything is there. I look through my section and make sure that everything listed as needing a coat of paint is painted. Before I paint the vehicle, I double check the repair quality. We try to cover each other’s

bases, so I make sure I do my part and assess the work already done before I paint. With looking over the repair, I make sure it is acceptable for an insurance company to clear. We then tape up the car and clean it. I go in and seal, if I need to do so. I add the basecoat to the car and clear it. Then I bake it. Then we move on to the next vehicle. This is all part of the production process. The more vehicles you complete, the better. From time to time, I might have to sand out a run in


DALTON CARSTAR SOUTH LOCATION:

DALTON, GA. SIZE:

25,000 SQUARE FEET STAFF:

34

AVERAGE MONTHLY CAR COUNT:

100

ANNUAL REVENUE:

$5 MILLION

Meticulous Touch Whether it’s mixing paint, color matching, prepping or actually painting the vehicle, Chris Williams always has repair quality top of mind.

the clear. Most of the time, though, the paint jobs that come to me aren’t fullbody paint jobs. Sometimes I have to do just panels or doors. Usually, total prep time between paint jobs, when it’s not the whole vehicle, is 20–30 minutes. Unless you are having problems color matching, then it might go on a little longer. From start to finish, the paint process, when we have to paint a whole car, takes about 8 hours. I can spray 4–6 vehicles in a day, depending on the size of the car and weather. If it’s humid outside or rainy, the paint will dry much slower. I talk to the service advisor roughly 4-5 times per day. They come through and

check to see if we have any trouble. Sometimes we get calls to get highpriority vehicles done first, so my helper and I shift gears to accommodate. During times where we have bad weather, like hail storms, the shop gets packed so we have to make sure we are as efficient as possible. I know the customer’s need for his or her vehicle. Our focus is always on speed and quality.

My favorite part in the process is when I put my clear on. Each time, you can kind

of critique yourself to do better and it’s the most challenging part. The paint job is like the icing on the cake. That’s what customers really look at. Sometimes, I like to do a tape-off with Justin. We like to see who can finish taping their side of the car first. I also like spot repairs. You know, each car has its own texture, and I try to match that texture, so no one will notice the difference between the original paint and what I did. I see a vehicle as my canvas. What’s neat to me is that everybody gets to look at my work. I can put a little bit of pride into it because it’s something that I’ve done. And, I also enjoy the challenge of color matching. If the paint job isn’t done correctly, then the car isn’t going to its owner. My role has drastically increased. Paint jobs, I would say, are the most important roles in the shop. I’ve taken I-CAR, pressure sensitive paint (PSP)/PS2 training and BASF classes to help me stay up to date, paint wise. I

didn’t go to college, so what I’ve learned is from on-the-job training or these courses. My helper is still learning things about the industry and all the components of the paint process, so I try to show him what I do and the most efficient way to do things when I was in his shoes. I see a little bit of me in him. I always tell him if you can find a faster way to do a certain task, that’s your call. I’ll show you my way, but you can do it your way as long as it’s right. I don’t get worked up easily over anything. I try to show things in repetitive steps and I give him time to ask me questions. I explain the processes the best way I can. I’m a patient person.

In this line of work, every detail counts. I was

always told, if you mess it up, you can always fix it. But you always have to have a little bit of confidence in yourself and your work. Above all, don’t give up right off the bat. Painting cars isn’t something that you can do overnight. It takes practice. Each time you do it, try to learn from the mistakes you make. Make each time better. July 2017 | fenderbender.com 59


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U P DAT E

CARUBBA COLLISION

RESEARCHING SITE EXPANSIONS JOE CARUBBA KEEPS ADDING TO H I S WE S TER N N E W YO R K MSO EM PIRE, THAN KS TO DEFT SITE RESEARCH

COURTESY CARUBBA COLLISION

B Y K E L LY B E AT O N

Joe Carubba, the president and CEO of upstate New York MSO Carubba Collision, has expansion down to a science. Carubba has spent years developing his formula for adding new stores. And, by controlling variables as much as possible, he added four new locations in 2016, and has plans to open at least two more this summer. “We’ve got a pretty ambitious growth strategy,” Carubba says. FenderBender featured Carubba in 2015 (fenderbender.com/rapidexpansion) and learned about his main philosophies as an MSO operator. Since then, he has put his theories to good use, and the four Carubba Collisions that opened in 2016—in Auburn, Horseheads, Oneonta and on the north side of Buffalo—are on pace to meet or surpass the president and CEO’s goal of $3 million in annual sales each. Expanding a business isn’t always easy for shop operators, but Carubba Collision seems to continuously evolve, with recent measures like the addition of a career website. Breaking down data associated with potential new business locales—like population figures—has been on the top of Carubba’s mind of late. And, along those lines, Carubba shared the following advice to shop operators who are scouting potential new locations to expand their business into.

Plan for Growth Carubba Collision has experienced significant growth thanks to a systematic process.

DO YOUR RESEARCH.

Carubba has a business development employee who helps him thoroughly study prospective site locations, usually over the course of roughly six months. They pay attention to such details as the volume of collision repair sales within a 10-mile radius of a particular location. “Paint companies can supply you with that information pretty easily,” Carubba says. “We have somebody that we work with at a paint company that, [if] you give him a zip code, one day later you’re going to have the information you need.” Carubba also suggests using the services of a realtor with a proven track record.

he’s especially cautious with regard to elements like the size of the facility, amount of parking, and nearby competitors who may have a loyal customer base. One frequently ignored factor when considering a new body shop location: zoning. “Each town has a criteria for our type of business,” Carubba says, “so you’ve got to look into that. Typically, you don’t want to be by a school, you don’t want to be by restaurants, you don’t want to be by residential, and you don’t want to be by playgrounds, because you’re probably not going to be successful in your quest to get zoning approval.”

K EEP PA RTNERS H A PPY.

GAUGE THE DEMAND.

Carubba’s business development employee strives to keep an open line of dialogue with prospective sellers who reach out to the MSO virtually weekly. From there, feedback from fleet partners and insurance agents largely impacts Carubba’s final decision to expand into a new market. Carubba knows that keeping fleet and insurance entities content can keep a steady supply of customers flowing his way.

RESPECT RED FLAGS.

When Carubba is considering taking over an existing business building,

Ultimately, before adding a location, a shop operator must crunch the numbers and be certain that their business is positioned to keep building the customer base. “If it’s a takeover, I’m going to look at my [projected] return on investment based on their current profit,” Carubba notes. “If it’s a startup, you’ve got to have a pretty good feel for what the projections are going to be … in 18 months, and then base the profit off of something around what your average net profit is. We like to get our money back within four years.” July 2017 | fenderbender.com 61


COLUMNS

IN THE TRENCHES STEVE MORRIS

Seeing the Bigger Picture Core values and beliefs are crucial to the culture of your shop I recently conducted a peanut butter

and jelly sandwich test with the team at one of our locations. This is a great learning and team-building exercise about communication, perceptions and assumptions that exist in the workplace. The exercise blends humor with poignant lessons on the causes and consequences of communication breakdown (If you’ve never seen it, YouTube has several examples). We talked a lot about how our communication failures could negatively impact our customers and, of course, the team had several good answers and insights about that. Thinking the time was right, I asked, “What do you think is our purpose as a company? And as a team, 62 fenderbender.com | July 2017

why do we come to work each day, and ultimately who do we serve?” Having ignored the lesson that you shouldn’t ask a question that you don’t already know the answer to, I was still surprised when one of the key members of the team said, “I come to work to make a living.” This response was quite an eye opener for me because it demonstrated a disconnect between our company vision and purpose and that of the individual who gave the response. In thinking about how the disconnect occurred, I was reminded of a valuable leadership lesson that I learned from Peter Drucker, who used elements of the Three Stonecutters fable to relate his lesson: “One day a traveler walking along a

lane came across three stonecutters working in a quarry. Each was busy cutting a block of stone. Interested to find out what they were working on, he asked the first stonecutter what he was doing. ‘I am cutting a stone,’ he said. Still no wiser, the traveler turned to the second stonecutter and asked him what he was doing. ‘I am cutting this block of stone to make sure that it’s square, and its dimensions are uniform, so that it will fit exactly in its place in a wall,’ he said. A bit closer to finding out what the stonecutters were working on but still unclear, the traveler turned to the third stonecutter. He seemed to be the happiest of the three and when asked what he was doing, replied, ‘I am building a cathedral.’”


The third stonecutter had a visionary outlook on his work, even though what he did as an occupation was the same as the other stonecutters. He had the ability to look beyond the obvious and he certainly seems to be genuinely happy about his work.

“CULTURE DETERMINES WHAT IS RIGHT AND WRONG, WHAT IS ACCEPTABLE OR UNACCEPTABLE, AND WHAT IS IMPORTANT OR UNIMPORTANT.”

NICK SPAETH, THINKSTOCK

STEVE MORRIS D I R E C T O R O F O PE R AT I O N S PRIDE COLLISION CENTERS

But is he demonstrating a leadership quality? My belief is that he has not achieved that level yet because the other two stonecutters do not share his vision of the work. Peter Senge, another management guru, has explained, “the responsibility of a leader is not just to share a vision, but to build a shared vision.” How do we begin the process of creating a shared vision within our organizations? First is that the owners and leaders of the company must create and publish a company mission and purpose statement, and augment it with a list of core values and beliefs. A mission statement is a short sentence or concise paragraph that defines what the organization is, why it exists, and its purpose. These declarations should include the company goals for its customers, its employees and its owners. These goals are typically long term and change little over the life of the organization.

At my company, we have the following mission statement: “We will expand our business by earning the long term loyalty of our customers and employees with our passion for excellence. Working to deliver more than promised; being honest and fair and going the extra mile to provide exceptional personalized service.” Our purpose statement, meanwhile, is “to provide the best quality and value in auto body repair in the markets we service and to enable our employees and shareholders to flourish and prosper.” If you don’t already have a mission statement, you can plan to spend many hours contemplating what your statement should contain. You may want to collaborate with some of the key people in your organization and incorporate some of their thoughts and ideas about your mission. No matter what path you take, in the end, the statement must be uniquely yours and must truly capture the purpose for existence of your company. I believe that creating a list of core values and beliefs goes a long way toward developing the culture of your company. Culture is sometimes defined as the habits and patterns of response that a group reverts to when handling problems that come up between themselves, their customers and others outside of their environment. We seek to create a culture where behaviors that become the norm

are closely aligned with the behaviors that owners and leaders would expect. Culture determines what is right and wrong, what is acceptable or unacceptable, and what is important or unimportant. Having a set of core values and beliefs becomes the de facto standard that employees will refer to when making decisions within your business, even when you aren’t looking. Think of it as “this is how we do things around here.” At Pride Collision Centers, we have developed a list of 10 core values and beliefs. Here are a few examples: 1. We feel a sense of urgency on any matters related to our customers. We own problems and we are always responsive. We are customer driven. 2. We require complete honesty and integrity in everything we do. 3. We are believers in the Golden Rule. In all our dealings we will strive to be friendly and courteous, as well as fair and compassionate. Thinking back to the stonecutters fable, I certainly would love to have a whole team full of “cathedral builders” and it is clear to me that some of the most important work we can do inside of our business is building a shared vision. I know I still have work to do.

S T E V E M O R R I S is the director of operations for Pride Collision Centers, a seven-location MSO located in Southern California. He is an Accredited Automotive Manager (AAM) and ASE-certified master technician.

E M A I L : stevem@prideautobody.com A R C H I V E : f e n d e r b e n d e r. c o m /m o r r i s

July 2017 | fenderbender.com 63


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Share your thoughts on clearcoat measuring at

I N N OVAT I O N S

fenderbender.com/innovations.

MOBILE CARTS

MOBIL E C A R T S EQUIPPED W I T H RECH A RGE A BL E PRIN T ERS A N AT L A N TA - A R E A M S O U S E D A S C A L E D - B A C K , M O B I L I Z E D P R I N T E R S E T U P TO S AV E M O N E Y B Y K E L LY B E AT O N

Saving Resources Rechargeable thermal printers have freed up space in the shop.

CLASSIC COLLISION LOCATION:

LAWRENCEVILLE, GA INNOVATOR

SCOTT BRITT SIZE:

37,000 SQUARE FEET ANNUAL REVENUE:

$100 MILLION (COMBINED)

What They Are —

A way of mobilizing lightweight printers and aiding efficiency for shop workers like estimators.

COURTESY CL ASSIC COLLISION

The Inspiration —

Not long ago, the shop printer was a prime “power hog” at Classic Collision, according to Shannon Blevins, the Georgia MSO’s regional director. Classic Collision’s crew also got a new, $4,000 mobilized cart for the shop floor and loved its versatility, but knew it would be impractical to invest in several such carts. That’s where director of IT and optimization Scott Britt entered the equation. He helped the MSO incorporate thriftier, three-tiered metal carts that could hold a laptop and a printer, to mimic the versatile, older cart. The scaled-down carts cost less than 25 percent of what the old carts cost. Then, in 2015, Britt made the modification of adding a rechargeable Brother thermal printer, which essentially burn images onto paper, rather than using ink, based off the recommendation of a vendor. Before making that move, Britt, who now works out of the MSO’s new Lawrenceville, Ga., location, noticed that bulky laser printers tended to bounce around on Classic Collision’s mobile carts. Blevins says the new mobile, rechargeable printers, which cost between $275–$500 for most models, are “much more durable for the environment we are in.”

What They Do —

The rechargeable printers and their accompanying mobile carts help Classic Collision’s efficiency in multiple ways. For starters, they lessen the possibility for technological failure on the mobile carts, Britt says, which had previously been complicated by the use of elements like batteries (the new printers simply charge overnight) and power inverters. Also, the rechargeable thermal printers don’t require toner, something Classic Collision had churned through quite a bit of with laser printers. But, more than anything, Britt’s modified printer setup lets estimators move their mobile printer carts around the shop floor with greater ease. “It’s pretty much just one piece, and off you go,” Britt explains of the printer setup. “It makes us completely mobile. We can go outside and write estimates, we can go all over the shop and write estimates.”

How They're Made —

Work was minimal to make Classic Collision’s rechargeable thermal printers mobile. The MSO simply purchased metal carts online, and set up the Brother printers according to directions. The modified, four-wheel carts also easily hold employees’ laptop computers.

The Cost —

On Britt’s suggestion, Classic Collision purchased several $150, three-tiered metal carts. With the accompanying thermal printers, each cart costs a total of close to $650, the director of IT says.

The ROI —

Britt says Classic Collision has seven mobile carts equipped with the thermal printers. Those carts added up to cost just a little more than one of Classic Collision’s old mobilized carts. The past printers Classic Collision used were reasonably priced at $300 each, but required $75 toner cartridges that needed to be replaced seven times per year, an expenditure Britt no longer has to concern himself with now that his shop uses thermal printers. The modified thermal printer carts also offer subtle, yet significant time savings, because they save employees from having to trudge from the shop floor to the front office to print. “Now we’re able to put dedicated [employees] out in the shop with those carts who can write supplements, who can write an estimate if need be, and they can print it right there,” Britt says. “Just makes life a lot easier.”

July 2017 | fenderbender.com 65


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2017

PEOPLE MAKE ALL SPEAKERS Real shop operators and industry leaders have been in your shoes, they’ve taken the risks, they know the challenges you face. They’re leading our sessions and can make a real impact on your bottom line.

MIKE ANDERSON Owner, Collision Advice

JASON BOGGS Owner, Boggs Auto Collision Rebuilders

ADAM GRANT Owner, Xtreme Collision Center

BRIAN GREENLEY President, Greenley Enterprises Corporation DBA Maaco Collision Repair and Auto Painting

RANDY SATTLER Manager, Rydell Collision Center

MATTHEW MCDONNELL Owner, Big Sky Collision Center and A&D Auto Body

WILLIAM PARKINS General Manager, RNR Automotive Refinishing and Metro Auto Rebuild

DELEE POWELL Owner, Baker’s Collision Repair Specialists

KEVIN RAINS Shop Operator/Founder, Body Shop 2.0

DAN SJOLSETH Owner, Superior Service Center


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