•⁄’utilizez pas un couvre⁄siège qui peutbloquerledéploiementducoussingonflablelatéral⁄oirle manueldu conducteur pour deplusamplesrenseignements AVERTISSEMENT
vousappuyez pascontrelaporte
Order Labels From Our Easy To Use App New and Improved ADL App Now Available!
CaGroup: FG Evap: FGMXR009SFI/HO2S/TWC, OBD:II
D OBD II
. EPA:T2B4 LDV
VEHICLEEMISSIONCONTROLINFORMATION forms to regulations: 2016 MY California: Not fo states with California e issions stand
No adjustm
L Group:GFMXV02.3VJW
Evap MXR0125NBV
Combating a business slowdown
See some of what you missed at the SEMA Show
Do you belong to an industry association?
at SEMA
How Driven Brands aims to improve the customer experience
Unique Collision Center competes with the “bigger fish” with OEM certifications and more
An employee handbook is more than just a legal document
Use CSI scores to celebrate and coach your staff and improve your business
Build Your Sales Culture: Leverage customer relations for growth
Steps to take to sell your collision repair business
The impact of adding just one labor hour to every estimate
back on
EDITORIAL
Chris Jones Group Editorial Director
Jay Sicht Editor-in-Chief
Abdulla Gaafarelkhalifa Associate Editor
Kacey Frederick Assistant Editor
Emily Kline Special Projects Editor
Leah Marxhausen Special Projects Editor
Drew Bryant Contributing Writer
Tiffany Menefee Contributing Writer
Greg Lobsiger Contributing Writer
Noah Brown Contributing Writer
Lindsey Gainer Contributing Writer
Todd Kortemeier Contributing Writer
Steve Trapp Contributing Writer
EDITORIAL ADVISORY BOARD
Jordan Beshears Steve’s Auto Body
Sheryl Driggers Collision Advice
Frank Rinaudo Industry Consultant
Jason Mundy Mundy’s Collision Center
Stan Medina Certified Collision Works
SALES
Chris Messer VP/Market Leader - Vehicle Repair Group
Sean Thornton Account Executive (National Accounts) sthornton@endeavorb2b.com
Ryan McCanna Administrative Assistant
ART AND PRODUCTION
Mariah Straub Production Manager
Jen George Ad Services Manager
Mitch Bradford Art Director
ENDEAVOR BUSINESS MEDIA, LLC
CEO Chris Ferrell
COO Patrick Rains
CRO Paul Andrews
Chief Digital Officer Jacquie Niemiec
Chief Administrative and Legal Officer Tracy Kane
Chief Marketing Officer Amanda Landsaw
EVP Transportation Kylie Hirko
EVP Endeavor Business Intelligence Paul Mattioli
HOW TO REACH US
Endeavor Business Media, LLC
571 Snelling Ave N Saint Paul, MN 55104 tel 651.224.6207 fax 651.224.6212
The annual subscription rate is $90 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender.
LETTERS TO THE EDITOR editor@fenderbender.com
Opinions expressed in FenderBender are not necessarily those of Endeavor Business Media, and Endeavor Business Media does not accept responsibility for advertising content.
COMBATING A BUSINESS SLOWDOWN
There is help – and hope – for those owners and operators examining where they can improve operations to stem a loss in business.
WE’VE BEEN HEARING ABOUT collision repair shops slowing since at least May, with rising car insurance costs and a reluctance of car owners to file a claim being blamed for some of the cooling business climate.
Although at FenderBender we’ve always had the mission to help owners, operators, and managers work smarter and grow their collision repair businesses, that’s now even more critical. Not all changes need to be drastic. In this month, Greg Lobsiger, owner of Loren’s Body Shop in Bluffton, Indiana, shows the impact of adding just one more labor hour to each estimate can add up to $35,425 and $141,700 for four. Check out his common sense list of a dozen tools to add additional labor hours.
Sheryl Driggers, speaker and coach with Collision Advice and FenderBender editorial advisory board member, shows how customer service index surveys can be used to help coach staff so that exceptional customer experiences are the norm and turn customers into brand evangelists who refer friends and family, which is essential to business growth.
Similarly, veteran industry consultant Steve Trapp continues his series on building a sales culture, this month by focusing on leveraging customer relations to drive business, and as Steve does, he quantifies the results of such efforts by illustrating the lifetime value of a customer. (Would you believe by combining his or her business with that of referrals, it’s currently $180,000?)
“This shift leaves shop owners grappling with the consequences, resulting in widespread frustration and uncertainty. Collision shops find themselves in a position where they must advocate more vigorously for the services they provide or, in some cases, pass increased costs on to customers,” she notes in the column.
To get yet more perspective on the issue, I also followed up with her for an interview on our CollisionCast, which will be live at the time of this issue’s publication. In that talk, she pushes for collision repair associations and other activists to partner with the personal injury attorney industry, which can help get legislation passed that is mutually beneficial to both industries with better funding and lobbying power than is available in a collision repair association.
These are just a few examples of strategy FenderBender offers to help your business. If you have advice you’d like to share with your fellow shop owners, please drop me a line. Sharing your success story could be part of a “rising tide (that) lifts all boats.”
With a rise in natural disaster casualty payouts, insurers are also refusing to cover common procedures, the subject of this month’s column by Tiffany Menefee, president of Pronto Body Shop in El Paso, Texas. Menefee, who is also a licensed insurance adjuster, says what the industry has pushed for to be standard operating procedures and paid for by insurers are increasingly being denied. It’s operations such as denib-and-polish, priming and blocking, and test welds, to name a few, that are being tested at the shop level.
JAY SICHT EDITOR-IN-CHIEF jsicht@endeavorb2b.com
THE END OF GENERALIST BODY SHOPS, PLUS POLITICS, DISCUSSED AT SCRS IDEAS COLLIDE
THE SOCIETY OF COLLISION REPAIR SPECIALISTS (SCRS)'s IDEAS Collide Showcase during the SEMA Show provided a platform for innovative ideas to be shared during multiple fast-paced presentations. The session was designed to challenge speakers and stimulate the audience with concepts that rattled the status quo and ambitious ideas that could have a transformative effect on the industry and the businesses within it.
The 2024 program featured the following speakers and topics:
The Era of the Single-store Generalist Body Shop is Coming to an End
Cole Strandberg, managing director, Focus Investment Banking, LLC, explained how vehicles had become increasingly complex, and the training, equipment, and talent required to repair them had disrupted an industry that’s been around for over a century. He highlighted that this disruption presented a massive opportunity. Depending on their financial resources, skills, and strategic vision, operators had three viable paths forward: specialize, scale, or sell. Each choice came with its own set of advantages and challenges, but one option wasn’t on the table: doing nothing.
UN-Divide and Conquer
Jill Tuggle, executive director of the Auto Body Association of Texas, addressed the longstanding divisions that had hindered collaboration and education in the collision repair industry for decades. She explained how state associations are taking proactive steps to bridge these gaps by fostering communication, sharing best practices, and advocating for higher industry standards. She emphasized that collision repair businesses can play a vital role in reshaping the industry’s future, ultimately promoting unity and driving positive change for everyone. The answer, she said, is to engage with local associations and participate in collaborative initiatives.
Sustainability’s Role in Every Layer of Collision Repair
Christian Ruecker, vice president of mobility sales, Dekra North America, showcased examples of how sustainable practices have contributed to longevity and profitability and how sustainable business practices benefit every stakeholder in the industry, including collision repair.
Peak Blue-Collar: The Evolution of Collision Repair Shops into White-Collar Enterprises
Bill Park, founder of Crunchit Financial Services, discussed how a potential future workforce balances a white-collar transformation with technology-driven desires, a focus on flexibility and purpose, and a demand for continuous learning. He described peak blue-collar as a launchpad to embracing the future and understanding how to navigate the divide.
Earning a Return on Capital Spending
Jeramy Holloway, director of aftersales at Spanesi-Americas, talked about how investing in facility and equipment is necessary to deliver high-quality repairs. He emphasized
the importance of understanding how to earn a return on equipment purchases by properly implementing the equipment into the repair process.
The Fine Print of REPAIR Politics
Wayne Weikel, vice president of state government affairs at the Alliance for Automotive Innovation, quoted Plato, saying, “If you do not take an interest in the affairs of your government, then you are doomed to live under the rule of fools.” He explained that it is not just a matter of being interested in politics but is important to understand the motivations influencing policy work in both state capitals and in D.C. He highlighted that without the logic and input from informed members of the community, policy has the potential to be shaped by other vested interests and voted on by individuals who lack the specific understanding of the industry and the economic influences that put pressure on proper repairs. He encouraged participation in the political process and using individual voices to advocate for change, common sense, and consumer protection.
Building the Future Together: Uniting
Education,
Industry, and Community
Molly Mahoney, national marketing and engagement director for Collision Engineering, discussed the growing demand for skilled collision repair technicians and the Collision Engineering Program's vision that harnesses an impactful collaboration between education, industry, and local communities. She explored how their vision combines hands-on training, innovative educational models, and industry collaboration to pave the way for a brighter future — one where skilled technicians thrived, communities grew, and industries adapt to new challenges.
FenderBender.com/news for daily updates from around the collision repair industry.
SCENES FROM THE SEMA SHOW
By JAY SICHT / PHOTOS: JAY SICHT
THE FENDERBENDER TEAM, along with others from the brands in Endeavor Business Media’s Vehicle Repair Group, attended the 2024 SEMA Show and related events in Las Vegas the week of Nov. 3. Altogether, more than 160,000 attendees from 140 countries
attended the event, including the Collision Repair & Refinish and Tools & Equipment exhibit halls, now in their third year in the South Hall’s upper floor. Look for more coverage to come, but for some brief highlights: More than 400 attended the one-day MSO Symposium, the most in the event’s history. David Roberts of Focus Advisors, in a market update, said he sees no sign of a slowdown in private equity firms investing in multi-shop operators. The Collision Industry Conference, as always, offered engaging and informative discussions, including an explanation on CAPA’s tier 1 part verification process.
Training in Virtual Reality
I-CAR showed how virtual reality can train technicians on how to safely de-energize an EV battery.
(Inset: “real-life” trainer cart.)
FenderBender Honorees
Best Repair Planner/ Estimator Anthony McNee and FenderBender Award winner Amber Alley were honored by FenderBender at the
Awards Night.
The Society of Collision Repair Specialists hosted a number of educational sessions, including one on laser welding, which may be approved for collision repairs in the next five to 10 years. I-CAR offered virtual reality demonstrations and live welding demos, along with hosting educational sessions in the center stage of the Collision Repair & Refinish section.
The highlight for yours truly, however, was presenting the Best Repair Planner/ Estimator to Anthony McNee and FenderBender Award to Amber Alley at the Red Carpet Awards Night. We look forward to next year!
Why do so many shops choose Cromax® XP? Maybe it’s because they can achieve a premium finish in as few as two coats. Or that it’s easy to mix, match, and apply. It could also be having access to the most innovative digital color match tools. But we’d like to think it’s all of it.
See what sets Cromax® XP apart from the competition. axalta.us/xp
DRIVEN BRANDS TO CHANGE CUSTOMERS’ SHOP EXPERIENCE
A theme at the conference was for Abra, CARSTAR, and Fix Auto USA stakeholders to use technology to improve the customer experience and reduce the strain on estimators.
By ABDULLA GAAFARELKHALIFA PHOTO: JAMES ROETLING, ARANCO PRODUCTIONS
THE “LIMITLESS 2024” conference at the Omni Dallas Hotel in October provided a well-deserved break for many shop owners and operators under the Abra, CARSTAR, and Fix Auto brands. The event featured mechanical bulls, country music, and a gala celebrating Driven Brands’ stakeholders, making it an event to remember.
It wasn’t all fun and games; attendees also participated in informative sessions, keynote speeches, and panel discussions. Many of the topics discussed by Driven Brands show it aims to lower the strain and workload that estimators face in the collision repair industry and streamline the customer’s shop experience to something as simple as a key exchange.
Removing the Shop from the Customer’s Shop Experience
“We’re trying to drive as much technology utilization to our stores as possible,” Damien Reyna, COO of Driven Brands, told FenderBender during a media roundtable at the conference. “Consumer experience is table stakes at this point.
“Cleaning, landscaping, painting, HVAC, plumbing, auto repair, oil changes — anything you need can be booked online, and that’s what people want. They want to do it any time of the day, any day of the week.”
Reyna emphasized that the partnership with CCC, which provides much of the software to make turning in the car more seamless, is valuable to their overall mission.
Bart Mazurek, vice president of consulting for the Automotive Services Group at CCC Intelligent Solutions, shared this sentiment during a keynote presentation. He told shop owners not to worry about the coffee and doughnuts they have for customers because customers don’t want to stay in their lobby.
One of CCC’s software solutions includes Smart Estimate, an AI-powered tool designed to streamline the process of creating auto physical damage estimates. It works in tandem with CCC Quick Estimate to identify potential vehicle damage and digitally generate detailed estimates for review by adjusters.
According to CCC’s website, Key features include:
AI-powered Results: Uses AI photo analytics and estimating logic to assess repair requirements and produce detailed estimates.
Integrated Workflow: Integrates with Quick Estimate for efficient and seamless documentation through estimate.
Repair/Replace Insight: Accelerates part repair-and-replace decisions and labor-hour predictions using advanced AI.
Automated Parts Sourcing: Sources available parts and prices at the point of estimate based on carrier configurations.
AI Hints & Guidance: Helps estimators rebalance workload and reduce estimating burden with insurer-provided AI parameters.
These features, if used more, Reyna said, could lower the strain that estimators feel.
On top of learning about the tools, attendees at the Driven Brands conference in October learned how to win customers after receiving photos thanks to a session led by Gary Bagwell, director of MSO operations and training for Driven Brands.
“They need to recognize them (photos) and respond to them quickly, know how to respond, and know how to engage with the customer, whether it’s text or email,” Bagwell said after leading a session at the conference.
Other products that assist collision repairers include:
CCC ONE: Repair Workflow: A repair management tool that tracks vehicle repair status and integrates parts ordering and payment records to enhance productivity and customer satisfaction.
CCC Repair Quality: A tool that provides
access to OEM repair procedures, managing steps, and integrating diagnostics.
“It’s something we’ve had for a while,” Reyna said about Driven Brands’ software tools from CCC. “We’ve been reluctant to embrace.”
Reyna explained the reluctance with two points. The first is that change is difficult because old habits die hard. The second reason is that the volume of intake across all the brands has not necessitated that change.
According to recent news releases from CCC Crash Course reports, the number of collision repair claims has increased after the COVID-19 lockdowns due to several factors, including a rise in accidents as more people returned to driving. Additionally, the growing complexity of modern vehicles, particularly electric ones, has meant more extensive repairs have been required. Consequently, the total cost of repairs has risen significantly, reflecting increased labor rates
and material expenses. Overall, the industry is experiencing heightened demand and rising costs in this post-lockdown environment.
“We absolutely see the need to use more technology to drive the consumer experience,” Reyna said.
Are Estimators Extinct, Then?
When people hear about AI either easing or straight up taking over certain responsibilities in any career, many will think that it will lead to jobs being taken from actual humans. We asked Reyna if that’s the case with estimators working under the Driven Brands network.
“I don’t think so,” he said. “We tracked what an estimator used to be able to write on a monthly basis. That was a unit of measurement. A good or average estimator could write $150,000 to $200,000 per month in sales. That’s drastically dropped in the past few years because of how much administrative work goes into it.”
He explained that estimator responsibilities, such as looking up repair procedures and doing administrative work, lead to burnout, a word that seems to stick around in this post-COVID world.
“I think we’re losing more estimators through burnout, and if we can reduce that through technology, I think we will have more positivity in the estimator position than losing their job.”
‘Teslafication’
This focus on leveraging technology to improve efficiency and reduce burnout was echoed throughout the conference. One of the most notable keynote speakers was Jon McNeil, vice chair of self-driving car company Cruise and board member for General Motors, as mentioned in the itinerary for the presentation. This understandably perplexed many attendees when he spent the entire time speaking about
his experience at Tesla working alongside Elon Musk.
At the end of his presentation, an audience member asked why he was talking about Tesla if he’s not with them anymore, with many in the audience laughing in agreement. McNeil explained that he couldn’t speak about what General Motors is working on at the moment, but he could speak about his time at Tesla.
“It was one of my responsibilities as president of Tesla to look out for the service business, and when I got there, it was embarrassing,” McNeil said. He also shared that Tesla service centers, at one point, had 30-day wait times for the U.S., which was one of the shortest globally.
He worked with technicians to find a way to lower cycle times. After discovering that 80 percent of repairs in a Tesla service center were small, easy, simple fixes, the company came up with their mobile repair service.
Tesla’s mobile repair service provides a convenient solution for vehicle maintenance
by allowing technicians to perform repairs at the owner’s location, whether at home or work. Owners can schedule appointments through the Tesla app, specifying their vehicle issues, which helps technicians prepare with the necessary tools and parts. The service includes a “no-touch” option, enabling technicians to work without the owner present, thereby enhancing convenience.
Don’t worry, McNeil shared this story with full understanding that he was talking to body repairers and not service technicians.
“People wanted time back, and people get time back when you can do repair on their terms, not yours,” he said. “Here’s a challenge for some of you real innovators in the room. I’d be curious about how many of your repairs could be done in somebody’s driveway. I’d be really curious to find that out. Because if I was first in market on the collision side with something like that, you’d have a big chunk of that market.”
SHOP OWNER’S PAINTING RAISES
$8K FOR CYSTIC FIBROSIS
Troy Buck, owner of Fix Auto Avondale, turned his passion for art and automotive painting into a successful hobby supporting cystic fibrosis research.
After discovering his talent for auto painting, Buck combined this passion with his collision repair work, creating a thriving business.
His latest project, a painting autographed by NASCAR legend Jeff Gordon, sold for
$8,000 at an auction, with all proceeds benefiting cystic fibrosis research. Buck’s journey highlights how blending artistic talents with professional expertise can make a significant impact beyond the automotive industry.
DRIVEN BRANDS
ALLDATA REPAIR PLANNER NOW PART OF THE CCC SECURE SHARE NETWORK
ALLDATA has launched its new tool, ALLDATA Repair Planner, on the CCC Secure Share network.
This integration allows customers to securely import estimates from CCC Secure Share to ALLDATA Repair Planner.
The tool helps collision repairers save time by reviewing estimates, flagging OEMspecified repairs, and providing access to OEMaccurate vehicle repair information. It requires a subscription to ALLDATA Collision and covers over 95% of vehicles on the road today.
3M AND BASF COATINGS SET TO DEFINE SUSTAINABLE COLLISION REPAIR PRACTICES
3M and BASF Coatings are collaborating to develop new standard operating procedures (SOPs) and training content for the collision repair industry.
These SOPs aim to enhance sustainability and productivity in the automotive refinish process. The new procedures will help body shops reduce material waste, emissions, and non-productive time.
“By collaborating with one of the world’s leading innovators in 3M, we improve our customers’ environmental footprint beyond our BASF sustainable paint portfolio by providing shops with standard operating procedures focused on reducing waste, emissions, and improving efficiencies,” said Rahel Reichmann, head of sustainability for Refinish coatings at BASF. “We have confirmed with a significant number of body shops around the world that a sustainable body shop definition and certification is needed to move the industry forward.”
The SOPs and training content are set to be introduced in early Q1 2025.
MITCHELL AND PROTECH COLLABORATE TO STREAMLINE CALIBRATION DETECTION
Mitchell, an Enlyte company and provider
of technology and information for the P&C claims and repair industries, and Protech Automotive Solutions, a national provider of ADAS diagnostic scanning and calibration services, announced they have signed an agreement to integrate Protech’s ADAS ID3 solution with Mitchell’s Diagnostics as a Service (DaaS) platform and Predictive ADAS functionality.
“With advanced safety systems becoming standard on new vehicles, it’s more important than ever that estimators and technicians have easy access to ADAS calibration information in order to safely return collisiondamaged automobiles to the road,” said Jack Rozint, senior vice president of repair sales at Mitchell. “Our DaaS platform, patented diagnostics workflow, and integrations with technologies like Protech’s ADAS ID3 help make that possible while, at the same time, streamlining the repair planning process.”
Protech is the first AI and machinelearning technology provider to integrate with the new Mitchell Diagnostics Predictive ADAS solution. Its ADAS ID3 offering mines thousands of data points from vehicle scans and other sources to create ADAS repair recommendations that identify the safety features in need of being restored to factory specifications.
“Determining the OEM-recommended calibrations on a given repair is time-consuming and could be error-prone when done manually,” said Don Mikrut, vice president of Protech. “However, leveraging Protech technology along with Mitchell’s can help repairers improve efficiency, reduce rework, and, most importantly, return critical safety systems to pre-accident condition.”
Availability of the Mitchell Diagnostics Predictive ADAS solution is planned for the first half of 2025.
3M AND AXALTA COLLABORATE ON REFINISHING TRAINING
3M and Axalta have collaborated on a new training content series focused on automotive refinishing. The series will
feature five co-branded training modules aimed at helping technicians and shops improve their understanding of repair processes and drive better operational outcomes. The first three training modules, centered on optimizing process productivity, efficiency, and quality in refinishing, will be released globally in December. Additional modules focused on safety and sustainability will be available in 2025.
“In response to the industry’s critical shortage of skilled labor, 3M and Axalta recognized the need to collaborate on refinish process training and skills development for collision repair technicians. The co-developed training content leverages the expertise of both companies in science, automotive refinish processes, and training solutions, providing industrybest practices in clear, procedural steps for easy implementation by shops,” said Dave Gunderson, president of 3M automotive aftermarket division.
“We are proud to work with our longtime collaborator, 3M, on this initiative,” said Troy Weaver, president of global Refinish at Axalta. “This effort sets a new benchmark for how operational knowledge is shared across the industry, ensuring that everyone benefits from the latest best practices to improve operational efficiency and safety. Our commitment to supporting workforce development is strengthened through strategic partnerships and shared access to training resources. Together, we’re not just building a better future for our company, but for the entire industry.”
During a cocktail reception at Caesar’s Palace in Las Vegas to celebrate the launch, event organizers emphasized their effort to minimize the display of 3M and Axalta logos. This was done to demonstrate their commitment to the industry’s future rather than using the event as an advertising opportunity. The reception also showcased the first module/video, which organizers hope technicians will benefit from.
SNAP-ON TSS PRODUCT INNOVATIONS DISPLAYS AT SEMA
Snap-on Total Shop Solutions (TSS) showcased its award-winning products and equipment at the 2024 Specialty Equipment Market Association (SEMA) show, held November 5-8 at the Las Vegas Convention Center. The event featured the John Bean TruPoint advanced driver assistance system (ADAS) calibration solution, along with other John Bean equipment such as lifts, aligners, balancers, and tire changers. SEMA participants had the opportunity to see these products in action and learn why TruPoint recently earned a prestigious innovation award.
John Bean also introduced the new V4400 Commander wheel aligner to the North American market, designed to enhance shop productivity and flexibility with its innovative features and usercentric design. Hofmann service equipment, including alignment systems, tire changers, wheel balancers, TreadReader, and the 15K four-post alignment lift, was highlighted. The 2400P Armored Series wheel balancer was also featured.
Car-O-Liner presented advanced collision repair equipment, including bench racks, welders, measuring systems, riveting tools, and workstations. The BenchRack Versa, the latest in-ground innovation in collision repair technology, was introduced. Products from various TSS brands, such as Cartec (headlight tester), Challenger Lifts (lifts and mobile columns), Ecotechnics (air conditioning service products), and JOSAM (aligner and frame press), were also showcased.
Mitchell 1 displayed its award-winning software solutions, while Pro-Cut (brake lathes), Snap-on Diagnostics (scan tools), and Sun Collision (collision repair information) had their products available for hands-on demonstrations. A special heavy-duty section featured innovative HD products like mobile columns from Challenger Lifts, a Hofmann HD balancer and tire changer, JOSAM cam-aligner and frame press, an on-truck brake lathe from ProCut, and information solutions from Mitchell 1. The Snap-on Diagnostics APOLLO+ scan tool was also showcased.
“As the leading global provider of innovative and efficient automotive repair solutions, we were excited to showcase the latest advancements from Snap-on TSS brands at SEMA,” said Mariana Montovaneli, director of marketing for Snap-on Equipment. “Our teams work closely with customers to ensure our products enhance their businesses. We invited all SEMA attendees to experience these groundbreaking products in action.”
When
The conversion of standard production vehicles into mobile canvases that are long, low and sleek “low and slow” is a cultural phenomenon.
www.sata.com/lowrider
NUMBERS ARE YOU INVOLVED IN AN INDUSTRY ASSOCIATION?
FENDERBENDER INDUSTRY SURVEY respondents are recognizing the benefits of being part of a state, regional, or national industry association, with six percent more of respondents this year saying they are involved in at least one. This reverses the downward trend shown in 2023 (37 percent) after 40 percent in 2022 claimed membership in at least one association.
UNIQUE COLLISION CENTER
By ABDULLA GAAFARELKHALIFA
Photos by UNIQUE COLLISION CENTER
IN THE COASTAL TOWN of Gulfport, Mississippi, Unique Collision Center grew from a single shop into the first of a threelocation Mississipi multi-shop operator (MSO) with another location in Biloxi and a third in Ocean Springs.
The ceiling of the shop might make you think it’s a flipped sailboat. A FenderBender reporter certainly considered the possibility, but the truth isn’t that far off.
Elmer Pique Jr., the current owner of the small MSO, told FenderBender that his father, Elmer Pique Sr., bought the building in 1984, which used to belong to a fiberglass boat repair shop.
A UNIQUE FAMILY
Pique, who took over the business from his father in 2005, has continued to uphold the values and standards that have made the shop a trusted name in Gulfport. “My dad still comes in every day,” he said. “But he’s more involved just to have something to do. Since 2005, I’ve been running it, and we just celebrated our 40th anniversary last August.”
Pique’s son, Chase, has been involved with the business since he was old enough to drive. “He’s 25 now and has a lot to learn on the business management side, but he’s good with the technical stuff,” Pique Jr. said. He also hopes to pass it down to his son.
Not much can be said yet about what Chase’s leadership will look like, but one big difference between Junior and Senior is their views on MSO. From an outside perspective, it seems that both want to grow their businesses safely.
“Six or seven shops would be good for me,” he said. But he didn’t have a set
timeline because he wants to grow slowly and carefully.
THERE’S ALWAYS A BIGGER FISH
A testament to their success could be seen by the fact that some of the biggest MSOs tried to buy his business.
“I want to be able to pass it on to my son like my dad passed it to me,” Pique Jr. said. “One day I’d like to see my son pass it to his. Who knows?”
Unique Collision Center competes with the bigger fish by staying up to date on services. Pique Jr. shared he is equipped to handle electric vehicles (EVs) even though the market in his area isn’t demanding it yet.
“On the electric side of things and the higher-end cars, we’re onboarding right now with Porsche and Lexus, but currently our certifications are moving forward with Ford aluminum and GM EVs,” Pique said. Unique also holds Volvo, BMW, Lucid, and Rivian certifications,all of which can be taken through Unique’s 12 body shop bays and 10 paint bays.
A UNIQUE COMPETITION
Unique Collision Center has no issue attracting customers despite the competition. As of October 16, the shop has a four-week backlog. The business, however, does struggle to find qualified technicians.
“We have a 401(k), we have healthcare, we close for a half day on Friday, but we still get our 40 hours,” Pique said. “It’s hard to get people to even come to the industry, but then when you’ve got big MSOs that can give big signing bonuses and offer all this stuff, it’s even harder to compete with that. But as long as you stay true and do what you say, you tend to keep the good people.”
What’s the Impact of Adding Just One Labor Hour to Every Estimate?
With lower demand, maximizing each job is crucial.
I was told years back, “We need to be in business to sell labor as fast as we can!” Why is this statement true? Well, our parts gross profit is capped to around 25% (pending discount levels), due to the car manufacturers’ list pricing. On the other hand, our technician labor GP should be around 60-65%.
What would be the impact on our business if we added just one labor hour to every estimate?
Let’s take an example hourly shop, ABC Auto Body, which produces $3,000,000 in gross sales per year, with the final bill on each repaired car averaging $5,500. If we wanted to know how many cars they repaired per year, we would take $3,000,000 / $5,500 = 545 cars. Let’s say each job averaged 36 billed labor hours. What if they started taking some estimating classes and added just one more hour to each estimate? What would be the effect? Well, let’s say their insurancepay labor rate on average was $65 per hour. See the math below for not only what one more hour, but up to four more hours added to each estimate would look like.
One more hour: 545 cars X $65 = $35,425
Two more hours: 545 cars X $130 = $70,850
Three more hours: 545 cars X $195 = $106,275
Four more hours: 545 cars X $260 = $141,700
Let’s say ABC Auto Body has a 45% overall gross profit for every car repaired prior to any estimating improvements. At a $5,500 average, there would be a $2,475 gross profit. How many fewer cars would need to be repaired just by better estimating to make the same gross profit by year end? Here’s that math:
One more hour: $35,425 / $2,475 = 14 fewer cars need repaired per year
Two more hours: $70,850 / $2,475 = 29 fewer cars need repaired per year
Three more hours: $106,275 / $2,475 = 43 fewer cars need repaired per year
Four more hours: $141,700 / $2,475 = 57 fewer cars need repaired per year
My uncle, for whom I worked decades ago, said something I have never forgotten. “Greg, some days I can make more money in the office than I can working in the shop.” Granted, the owner shouldn’t be working on cars, but I think you get his point that poor estimating is just dumb. Here’s the deal: with the help of CCC, etc. the insurers know EVERY shop’s average labor hours, and they are trying to drive them down. Shops must work at driving them back up. After 40 years in this, it’s just a game between shops and insurers of winners and losers. “It’s only money”… YOURS!!! Another mentor told me, “Greg, if you are not getting denied things on your estimates, you’re not asking for enough!” With insurers suppressing labor rates, push up that denial line!
Tools to adding more labor hours to estimates:
1. Have all OEM procedures and inspections been added?
2. Use a PDR light to justify labor repair times for damage etc.
3. Attach all documentation for procedures, invoices for hardware, materials, paint, antifreeze disposal etc.
4. Providing quality and labeled photos is HUGE!
5. Estimates are not wish lists. ALL R&Is must be completed, photo’d and labeled. Adding line notes makes a huge difference and thus tells a story.
6. Review the P-pages for non-included operations in DEGWEB.org.
7. Add markup on any sublets, plus labor for pickup and drop-off.
8. Possibly use estimating review software, as the insurers sure are.
9. Have a second set of eyes review each estimate and photos before sending them to an insurer. They will ALWAYS find something missing!
10. Besides the shop owner, we must have estimators who are motivated/incentivized to bill for every hour.
11. Estimating training is available through Collision Advice, Collision Hub, some paint companies, and others. This is a prerequisite to high profitability!!
12. If you have never read the book “Never Split the Difference” by author Chris Voss, you need to read it! Chris was the top U.S. government FBI international negotiator who retired and is now sharing his knowledge. Insurers are using these same negotiation skills without us even realizing it, so shops should, too.
Most all adjusters have been brainwashed to use this statement on shops, “We are just trying to keep premiums down for our policyholders.” Before being overcome with empathy and now agreeing with all the short pays from them, understand this: For the top-four US auto insurance companies, here are their published CEOs’ salaries/ compensation for 2022.
State Farm CEO Michael Tipsord
$24,400,000
Allstate CEO Thomas Wilson $18,900,000
Geico CEO Tom Combs $13,600,000 Progressive CEO Tricia Griffith $12,700,000
Looks like my empathy for the policy holders AND these overpaid CEOs just went out the window!
EMAIL: greg@lorensbodyshop.com
ARCHIVE: fenderbender.com/lobsiger
GREG LOBSIGER
Greg Lobsiger has owned Loren’s Body Shop in Bluffton, Indiana, for over 23 years. He has been a member of Mike Anderson’s groups for ten years and had extensive lean manufacturing training.
A commonized set-up approach based on OEM specifications provides an easy to follow setup without sacrificing accuracy and precision
Future-proof your investment with the confidence that your calibrations are completed to the tightest tolerances and the the first time.
Guided interactive workflow. Step-by-step instructions and consistent user interface across all makes and models.
Modular and future-proof: Designed to work with new targets and the next generation of ADAS technologies
Integrated storage and maneuverability keep your equipment clean and serviceable and ready to use at a moment’s notice
Fast and efficient placement using digital vision positioning which automatically measures vehicle distances and angles to ensure precise calibration
Bosch DAS 3000
The calibration solution for fast, reliable and precise calibrations on a wide range of advanced driver assistance systems.
Get more information about the DAS 3000
DAS
In Auto Collision
Collision For Success
Inthe auto collision repair industry, there is no singular way to do things. Each shop operator brings his or her own approach to running a business, and many discover what works for them through a lot of trial and error. Although the method might differ, two key factors remain consistent with successful shop operators, their passion and genuine care for their employees and customers.
FenderBender sat down with Joe Rieger, operations manager at DeLuz Auto Body, Jayleen Ciaccio, collision shop manager at DeLuz Auto Body, and Randy Kuntz, collision center manager at Bennett Toyota, to learn more about their positive experiences with auto collision operations and how the knowledge they have gained has helped their shops flourish.
YOUNG TALENT MEETS INDUSTRY
Ciaccio’s father started his first auto collision shop, DeLuz Auto Body in 1989, and 11 years later she was born. Even though she grew up in the auto collision industry, Ciac-
cio never took an interest. It wasn’t until 2021 that she became curious about her father’s shop in Waimea, Hawaii.
“My roommate and I lived right next to the shop,” Ciaccio says. “She worked there as an office manager, so I joined her, and that’s when I started getting into it. When my roommate left, I took over her role.”
Shortly after Ciaccio became office manager, DeLuz Auto Body hired Joe Rieger as their new operations manager.
“Rieger helped me to see a lot of value in doing what I do, especially in managing production,” Ciaccio says. “It’s not just about giving the car keys back to the customer; it’s everything in between. The reason why I get up in the morning is not just for the customers, it’s also the relationship I have with these employees. Our shop has a very happy atmosphere.”
At 24 years old, Ciaccio is the youngest employee at DeLuz Auto Body. But despite her age, the approach she took to her work as shop manager has helped it grow.
“I don’t have that much experience,” Ciaccio says. “I had to tell the other employees that we’re all learning with each other. I’m still getting into this. ‘If you
could help me out, help me, help you. We can learn this together.’ There was a point in time when the Kona location had a lot of birth pains. But when I stepped in and took what Joe taught me and added a little Hawaiian vibe to it, we flourished.”
With Ciaccio’s assistance, Rieger’s vast experience in the auto collision industry has helped guide DeLuz Auto Body’s operations into a new era.
BRIDGING CULTURE IN COLLISION REPAIR
Rieger started his career in 1989 working for Sterling Auto Body, eventually becoming district manager. From there he went on to work for Gerber and Service King and in 2019, took his skills to Hawaii. Rieger spent four years consulting with Auto Collision Shops on Oahu, Maui, and the big island , until he settled at DeLuz Auto Body.
“I learned that to run a successful shop, it’s about the process,” Rieger says. “Yes, we fix cars, but how do we get there?”
To “get there,” Rieger had to learn about his employees and how Hawaiian culture impacted the workplace at DeLuz Auto Body.
“There were a lot of growing pains in the beginning because Rieger is from Chicago and this is Hawaii,” Ciaccio says. “If something needed to be done, and ‘‘I’m like, I’m going to get to it in five minutes.’ He was always like, ‘No, I’m going to do it right now.’ We had to adjust and find that medium ground where both cultures, his culture, and our culture met in the middle.”
Another pain point for Rieger was the technicians’ work schedule. The employees would often come and go as they pleased. As a “mainlander,” Rieger at first did not understand this. It wasn’t until he did independent research about the culture of Hawaii and talked to others at the shop that he grew to understand the values placed on family. After he understood other perspectives, he was able to explain his expectations as a collision shop operator in a way that his employees valued.
“Rieger and I sat down with everyone in the shop and said, ‘Okay, your hours are from 8 to 4; here’s the value behind it,’” Ciaccio says. “‘You’re going to make this much. You can save for retirement when you’ll be able to spend all your time with
family. So that was like the medium ground with Joe and the shop and the culture. We just had to talk to each other about it and just be humble and be balanced.”
Once Rieger and his team found the balance between work and play, he then moved on to changing how DeLuz Auto Body processed cars.
RIEGER’S ASSEMBLY LINE INNOVATION
Starting out, Rieger placed a huge emphasis on creating more of an assembly line process.
“DeLuz Auto Body presently uses an assembly line as part of its collision repair process,” Rieger says. “We build cars that way. Everybody in America, including big companies — whether you’re building widgets or whether you’re fixing cars — run a production line because in the 1930s it was proven to be efficient.”
Before Rieger, DeLuz Auto Body would get a car in and do a check in the front, pass it off to damage analysis, and then one technician would perform body, paint, parts hold, and reassembly. Because one technician was performing the last four parts of the process, the repair would take a long time.
“In the past, our technicians were used to taking their time,” Ciaccio says.
Team Effort Randy Kuntz credits his shop’s culture with the success of Bennett Toyota and his apprenticeship program.
“It would take a whole month for them to finish bodywork. But Rieger and I explained the value behind the new process, ‘You would be making this much money if you weren’t taking so long on this car,’ and then nine months later, they were looking at their paycheck or year-to-date (YTD), and they understood.”
Presently, when a car gets dropped off at DeLuz Auto Body it immediately gets written in damage analysis. Then it goes on to have whatever bodywork needs to be done. From there, it goes into paint, and if parts are missing, the shop waits for them to come in. Once they do, they get painted. The parts then go to reassembly, which a new set of technicians handles. Then the car is put back together, a quality check is performed, and it goes on the road. With Rieger’s processes in place, at least seven people will touch the car before it is finished.
“The positive outcome of the new process was one of the things that we couldn’t explain to them, they just had to see for themselves,” Ciaccio says. “It was a lot of patience on our part, but the team pulled through. They understood the value after they saw it for themselves. Especially seeing the cars move and not stay in our parking lot for months, and the growth of cars we receive because our turnaround time is so good.”
Under the guidance of Rieger and Ciaccio, DeLuz Auto Body has flourished. This year, it was able to open a second location in Kona, Hawaii, where Ciaccio runs production.
DEDICATED TO EXCELLENCE
Ciaccio and Rieger’s eagerness to learn from each other allowed them to create an unstoppable collision repair business in Hawaii. Their desire to listen to others created a shop culture that effectively blends Hawaiian tradition with “mainlander” workflow.
Just like Ciaccio and Rieger, Kuntz also faced his own set of challenges as a collision center manager.
Kuntz started his auto-body career out in detail at True2form Collision in Pittsburgh. From there, he worked his way into production and eventually became an employee at Bennett Toyota located in Allentown, Pennsylvania, in 2014.
In 2022, Kuntz took over the reins from the previous collision center manager at Bennett Toyota. As the new collision center manager of a 4-time award-winning Certified Collision Center for Toyota, Kuntz had big shoes to fill.
This national award — given out by Toyota Motor North America (TMNA) — is based on a 12-month evaluation of collision center sales growth, employee training, facility and equipment standards, and achieving benchmark profit objectives.
“Toyota wants you to feel confident that the shop has the proper equipment, the latest equipment, and that the staff is trained,” Kuntz says.
To maintain these high standards, Kuntz has had to discover how to continue to move his collision center into the future.
STAYING CURRENT WITH TRAINING
Since becoming manager, Kuntz’ center has put a lot of focus on employee training. Everyone on his team has taken classes on the integral parts of their job.
“I’m always cramming down training,” Kuntz says. “That’s what Toyota looks at, so
my staff is trained, from my estimator to myself. Our focus is always on doing what’s right for the vehicle and the customer.”
Kuntz’ entire team is either in the process of becoming ASE certified or already certified. In addition to ASE certification, Kuntz also puts a lot of emphasis on Toyota training programs.
“At the beginning of the new year, Toyota will send out the requirements of what classes are due for each individual,” Kuntz says.
“And then I’ll look at the requirements and tell my guys, ‘Here are your required classes, and here are your self-paced modules that we can work on ourselves at home or at work.’”
By encouraging training, Kuntz ensures that his team is always staying on top of new trends in the industry and that his customers are receiving quality service. Another thing Kuntz invests his time in is the education of future technicians.
BUILDING FUTURE TALENT
To ensure that prospective technicians are properly trained, Kuntz volunteers in two schools within Carbon County. Instructing at these schools often leads to Bennett Toyota receiving students for apprenticeships.
Toyota wants the customer to feel confident that the shop has the proper equipment, the latest equipment, and that the staff is trained.
—Randy Kuntz, collision center manager, Bennett Toyota
Although the apprenticeship program at Bennett Toyota is an investment, Kuntz believes the return on it makes it worth it.
“As far as the investment goes, I do pay our apprentice technician, Jesus Rodriguez, an additional per month,” Kuntz says. “We get a huge return as a result. Our production manager, Jacob Swartley, will make sure that there’s an extra car or two for Rodriguez to process. It’s another vehicle or two in the shop, and with the help of our mentor, Juan Colon, the vehicle assists in training as well. Rodriguez started as a shop helper and has evolved into someone that we can give a car to without really worrying about what he’s doing.”
The apprenticeship program at Bennett Toyota is a team effort, but Kuntz credits
its success and the success of his collision center to the team culture at his shop.
“I’m very fortunate as a manager here, I’m very fortunate to have these guys in place,” Kuntz says. “Even when I leave for vacation or training, I have no worries about the shop because Swartley is overseeing it. So, my hat’s off to him. We do what we have to do per month in, day in and day out. My team does a good job, and I’m super proud of everyone that’s employed here.”
With the help of his team, Kuntz looks forward to continuing the legacy of Bennett Toyota’s Collision Center and furthering the progression of his apprenticeship program.
FOSTERING TEAM-CENTRIC VALUES
Although there is no set way to run a collision repair shop, DeLuz Auto Body and Bennett Toyota have found what works best for them.
The management styles of Rieger, Ciaccio, and Kuntz exemplify the importance of care for employees and continuous improvement. Although they went about it in different ways, each of them discovered the significance of instilling a positive team culture that strives to better one another. By sharing their own knowledge with their community and their team, they continue to foster growth and elevate the standards of their shops.
STRATEGY
BEYOND CYA
More than a legal document, your employee handbook sets the tone for your company’s culture, expectations, and how to engage with your team.
YOUR SHOP FOLLOWS all the proper procedures when doing repairs — so why wouldn’t every other aspect of your business operate by the book as well?
An employee handbook is the guiding document for everyone working in the shop. Yet some shops are operating with handbooks that are out of date, incomplete, or worst of all, nonexistent. An employee handbook may seem like it’s just a box to check, something to cover the shop’s bases in case something goes wrong. And while the legal aspect is important, it’s not everything.
“We realized the handbook wasn’t just about protecting the company legally, but also about setting the tone for our culture, expectations and how we wanted to engage with our team,” says Sheryl Driggers, former owner of Universal Collision and currently a coach and speaker with Collision Advice. “It became a living document that evolved as the company grew and adapted to new challenges, but its core purpose of guiding and supporting our employees never changed.”
Is your shop’s handbook meeting the standard? Here are some tips and best practices to make sure you’re staying current.
as told to TODD KORTEMEIER
Handbooks
cover a wide range of topics
At Universal Collision, we developed our employee handbook shortly after opening our first location. Coming from a background in corporate America, I already understood the importance of having a structured guide in place to ensure clarity on company policies and expectations. While we didn’t have one from Day 1, it became evident early on that formalizing these details was necessary to create consistency and avoid misunderstandings.
Our handbook covered critical topics such as: company policies, such as our confidentiality agreement and equal opportunity policies; work hours and dress code; benefits and time off; and other policies unique to our shop, such as our open-door policy and rules about prohibited substances.
Be detailed, but include only what you need
When writing a handbook, you want to strike a balance between being clear but not overly strict. Too many rigid rules can stifle the work environment, but being too vague leaves room for misinterpretation. And only include policies you can enforce. If you have a rule in the handbook, you must be ready to enforce it fairly across the board. Otherwise, this can lead to inconsistency and legal trouble. It’s vital to know what is in your handbook so that you can keep it updated. Some shops write the handbook once and forget to update it, which can lead to outdated or non-compliant policies.
There may be other considerations as well in certain cases, such as MSOs operating in different states which must account for varying state labor laws. They need to create a handbook with sections that can apply universally to all locations, but also incorporate state-specific appendices or sections addressing local labor laws.
Know what needs updating
It’s easy for policies outlined in your handbook to get out of date, such as labor laws and related regulations. Laws change over time, so ensure your handbook complies with current employment law, including overtime, minimum wage and anti-discrimination policies. Benefits packages also evolve (healthcare, retirement plans, etc.), so you should update those sections. With the increased use of technology and social media, many handbooks must address privacy, acceptable use of company equipment and social media conduct.
As today’s workforce is looking for more flexibility, it is important to provide clarity on things like flexible working hours for your team. Again, consistency is key to ensure these policies are being enforced fairly. Finally, health and safety protocols, especially in light of events like
COVID-19, should reflect current standards and practices.
Help is available; do it right the first time
There are several resources available to create an employee handbook from scratch. Online platforms like the Society for Human Resource Management (SHRM) provide templates and guidelines. Typically, you will also receive resources from your employment practices liability (EPL) insurance policy to help create these types of documents. I am a member of SHRM, so I participate in training and have access to its resources.
I highly recommend consulting an employment lawyer or HR professional — especially to ensure you comply with local, state and federal labor laws. While this might cost a fee, it’s an investment in preventing costly legal issues. At Universal Collision, we had an HR attorney who would come in and conduct our annual harassment training, and we would consult on certain HR decisions.
Bring in the team; remember who the handbook is for
Employee handbooks are critical because they set clear expectations, provide consistency, ensure compliance with laws and protect both the business and employees from misunderstandings. Without a proper handbook, a shop risks legal liabilities, inconsistent management practices and a lack of clarity among employees regarding their rights and responsibilities. A wellstructured handbook also helps foster a positive culture by clearly outlining company values and policies.
If I could offer one piece of advice to shop owners, it would be to view the handbook as a living document, not something you create and then forget about. It should evolve as your business grows and as the industry changes. Furthermore, encourage employees to engage with it, offer feedback, and ensure that it reflects your shop’s culture and values.
CASE STUDY
WHAT GETS CELEBRATED GETS REPEATED
Use CSI scores to celebrate and coach your staff and improve your business.
By LINDSEY GAINER
CUSTOMER SATISFACTION INDEX (CSI) surveys are a treasure trove of valuable information for your business.
Curious what your team is doing well? What they could do better? What do your customers think of the shop? Whether they’re likely to refer you to their friends and family?
Look no further than your CSI.
“CSI survey results provide valuable insight into potential blind spots within your organization, whether related to your people or processes,” says Sheryl Driggers, speaker and coach with Collision Advice.
The scores offer actionable data, she emphasized—a starting point for deeper investigation.
“These surveys offer a snapshot of customer sentiment, but the true value comes from digging into the feedback and identifying the root causes behind the scores. Using CSI data combined
with internal audits, root cause analysis, team training, and process improvements, you can ensure you are creating exceptional customer experiences.”
Here’s how to use what you learn to improve your operations.
The Problem
Let’s be honest…no business is perfect. And sometimes areas of weakness aren’t obvious.
Not only does your CSI help you identify areas where you’re excelling — which you should celebrate your team for — they highlight areas where improvements are needed as well, and these areas are where you’ll find your training opportunities.
You’ll know, for instance, whether you’re setting proper expectations with your customers based on the feedback you receive—the surveys are great at identifying potential gaps in communication.
MYKYTA DOLMATOV / ISTOCK / GETTY IMAGES PLUS
“CSI scores have the potential to reveal whether your staff is engaging with customers in a transactional manner rather than building meaningful relationships,” Driggers says. “Furthermore, if your survey response rate is below 45%, it indicates a lack of customer engagement, which often means customers are indifferent and less likely to refer your business.”
And in today’s business climate, cautions Driggers, shops need to be focusing on customer satisfaction.
“In 2024, with a slowdown in work and fewer insurance claims due to rising premiums and political uncertainty, customer experience has become more critical than ever,” she says. “Delivering an exceptional customer experience from start to finish can turn customers into brand evangelists who refer friends and family. As a shop owner, that’s essential to maintain business growth.”
The quality of your repairs is another area your CSI can shine a light on, though it’s important to note that high scores in quality don’t necessarily mean there are no issues.
“High scores typically reflect only the cosmetic quality customers can see, so you should never rely solely on CSI scores to assess overall quality,” reminds Driggers. “They can, however, expose gaps in cosmetic appearance or workmanship.”
The Solution
First and foremost, Driggers advises, you should use your CSI score to share positive feedback and celebrate your team’s successes.
“Recognizing and rewarding excellent performance is important because, ‘what gets celebrated gets repeated.’ When team members feel valued for their efforts, they’re more likely to continue delivering excellent results. I’ve seen it repeatedly… when we celebrate our team, it deepens their desire to do it again and again.”
Alternatively, when low scores or negative feedback are received, it provides an opportunity for growth.
“Shop leaders should use this feedback to identify underlying issues, investigate gaps in performance, and coach the team on improving. By addressing these areas proactively, you can turn the problems into opportunities for development and improve both customer experience and team performance.”
The feedback you receive from your CSI surveys shouldn’t just be used internally, however; it gives you a chance to make the customer feel heard and valued. Always contact a customer directly who has given you poor scores, Driggers recommends.
“In my experience, when we had customers who brought up issues through the CSI survey, they became our biggest fans because of how we took ownership of the issue, made it right, and ensured they knew their feedback made a difference in how we did business. By taking this metric seriously and continuously improving your processes and experiences based on their insights, you ensure your business remains customer-centric and positioned to grow revenue through customer referrals.”
The Aftermath
Whatever area of your business needs improving, create a targeted plan to address it, says Driggers. If low scores consistently highlight communication issues, for example, the shop manager should develop or update their communication plan.
“At my shop, we had a nine-point communication plan that outlined how frequently customers should be updated,” she shared, with details on exactly when customers were to be contacted throughout the repair process, leaving no room for confusion around expectations.
“One of my key communication strategies is to avoid texting or emailing bad news. Even if a customer prefers text or email for regular updates, I recommend reaching out via text or email to ask for permission to call when delivering this type of information. For example, ‘Ms. Smith, do you have a few minutes to talk today? There’s something I need to review with you regarding your vehicle’s
repair.’ This approach ensures that important conversations happen over the phone, where you can offer clarity, empathy, and a personal touch.”
The exact scores that indicate improvements are needed will be unique to your shop and preferences…but at Driggers’ previous shop, for example, employees were expected to achieve a 98-100% ranking in the “Kept Informed” and “Service” score CSI categories.
The Takeaway
Regularly reviewing CSI data and implementing necessary changes fosters a customercentric culture. What gets talked about gets prioritized. By continuously engaging with feedback and using it to improve the customer experience, you ensure that your team prioritizes exceptional customer service, which can ultimately lead to repeat business and more referrals.
Improving your CSI score positively impacts the internal component of the business, too — your team members. Celebrating their successes based on positive feedback fosters a sense of value, recognition, and fulfillment, leading to increased employee engagement and morale. Ultimately, these factors contribute to increased revenue through repeat business, referrals, and a motivated, highperforming team.
Ignoring your CSI score, on the other hand, can have serious consequences. Neglecting customer feedback can lead to unresolved issues, dissatisfied customers, and poor word of mouth…resulting in lost business and a damaged reputation. Internally, failing to address feedback can lead to disengaged employees, as they may feel undervalued or unaware of areas needing improvement. The ripple effect can be lower team morale, reduced customer loyalty, and declining revenue.
The bottom line? Ignoring CSI scores puts both your customer relationships and business growth at risk; be mindful of the feedback you receive, and use it to better your shop!
BUILD YOUR SALES CULTURE: LEVERAGE CUSTOMER RELATIONS FOR GROWTH
The foundation of any sales and service culture is positive referrals and very specific positive reviews from past customers. Do your customers see you as a trusted advisor?
By STEVE TRAPP ADOBE STOCK 482327516
OVER THE PAST TWO MONTHS, I have written a series of articles related to building a sales culture as we have been hearing repairers are slowing down and backlogs have declined from weeks to days. The idea is to provide thoughts on implementing a sales and SERVICE culture to encourage the entire state to be on the sales team to fill the shop going forward. This article aims to reinforce how to leverage SERVICE via legendary customer relations to drive ongoing growth.
It Started with CSI and Led to NPS
In the 1980s, I met Dennis Kiyohara while working for 3M ARM$ (the industry’s first large-scale management system company, which was innovating automated estimating, job costing, production control and an integrated accounting system) and he started reading books on this new concept called CSI, or Customer Satisfaction Indexing. He was so convinced of its value that he started AutocheX. As the years went on, experts refined the raw CSI score and created the Net Promoter Score (NPS), as it was a bit more of a refined way to predict which customers would and which would NOT refer a business.
What is NPS?
If a customer scores their experience as a 9-10, they are quite likely to repeat or refer others. It’s the goal of the organization to build a sales and service culture where the customer experience process results in the customer being willing to score their experience as an 8-10. The customers who score a 7-8 rate their experience as so-so and are therefore not going to go out of their way to repeat the experi-
ence or go out on a limb and refer others. This is the score a repairer receives when they were treated as a number. Finally, a score below a 7 is a leading indicator of a detractor or someone who would bad-mouth your company and discourage anyone from having you repair their vehicle.
The Bottom-line Message of Google Reviews
CSI and NPS are solid internal viewpoints to satisfaction, but in the past decade, the internet enabled “reviews” to be posted by the consumer to reflect their feeling about the experience. This raw expression of emotion partnered with VERY SPECIFIC customer experiences, have made Google Reviews the goto assessment tool of a company by those using the internet to search for a repair center.
Achieving a high NPS score is ultimately about proving the customer with an experience which is LEGENDARY. A LEGENDARY customer experience is one which they were so impressed with, that they want to tell a friend or family member or make a positive review or post. Here are a few examples:
• “They offered me a ride home when the vehicle I was driving was determined to be unsafe to drive.”
• “They kept me informed throughout the entire process and completed the repairs on time.”
• “They offered to fix prior damage at a substantial discount, while my vehicle was there for repairs.”
The key to building a service culture is active listening and a keen sense of observation. Only with those senses refined can our teams see the opportunity to wow a customer and compel them to say incredible things about your organization.
What things can we do as repairers to drive the best possible experience?
Assignment: Answer the phone with enthusiasm and a smile and actively listen to their needs. Then once their questions are answered, take control so they feel confidence and you earn their trust. Use AI if the CSR is not available to make the contact, gather the information and get them scheduled for an inspection so we don’t lose the opportunity.
Inspection: Attempt to take an “advisory tone” and become their trusted advisor through the entire inspection/ estimation process. Use the opportunity to understand what they would like to see repaired through the repair process. Then, schedule them in when you have received all parts, so repairs can begin immediately upon arrival.
Drop-off: Remember to confirm appointment times (early in the day) using a CSR or AI. Again, at the time of the dropoff, attempt to greet them by name. Advise them on the repair planning process and explain that an expected delivery date will be provided ONLY after a thorough disassembly has been completed. Here is a great opportunity to listen to the customer and seek opportunities to compel customers to feel special and say nice things.
You now need to ask yourself what types of process refinements you might make to earn a higher-than-average NPS score.
Here is a key point in the service process, do not wait until delivery to discuss the CSI and ask for a positive review, instead, at drop-off at the vehicle hand them your card with your personal number on it and say, “We try to earn a positive review and 10 on our customer satisfaction surveys, and if at any time we are not earning that review or perfect score, call me immediately so I can address your concern immediately and assure a positive experience.”
In-process Communication: Knowing your customer’s preferred approach to communication, and then following up, is key to reinforcing the trust you desire to maintain throughout his or her experience.
Quality Assurance: Fundamental to LEGENDARY service are repairs that meet OEM and I-CAR standards. To win
the optimal review, it is essential that you repair vehicles “right the first time and on-time” (my quality statement) every day! You need to ensure your repair processes yield safe and proper repairs and you avoid ANY repair-related adjustments or comebacks.
Delivery: Having verified EVERY item promised is delivered, and on time, sets you up for success. Offering clear paperwork and reminding them of your written lifetime warranty, reinforces they made the right choice. Then, you have earned the right to ask for a referral or positive review!
Having a culture of kindness and living the above things can really inspire people to repeat the repair experience when the need pops up or they will refer when asked.
If you have done the above, you have earned the right to ask for a repeat opportunity or referral
The foundation of any sales and service culture is positive referrals and very specific positive reviews from past customers. In an independent post repair study, customers were asked, “Did you know of someone in the past year that could use the services of a collision repair shop?” and 87.23% said they did! But, when asked if they referred, only 1.36% said they did. And the longer since the last shop contact, the less likely they were to refer. But why? It’s the fear of reprisal, which means they don’t want to face the negative consequences of a negative experience, so they avoid making the connection.
To encourage these referrals, you need to stay in touch with the customers periodically and reinforce your integrity and willingness to be their trusted advisor. There are companies such as BodyShop Booster and Phoenix Solutions
that can help with creating custom email, texts, and even hand-signed First Class Mail documents. These help the shop stay in touch with the customer and remind them of your lifetime warranty and willingness to make any adjustments they might need.
What is the lifetime value of a customer?
If we make the sale and keep the customer for life, we see an incredible lifetime value for these repeat or referring customers:
Years to Repeat (reported claim): 10 Years Driving Tenure (16-76): 60 Years
Potential Lifetime Repairs: Six R.O.s Average Insurance-paid R.O.: $5,000 Average Lifetime Value of the Customer: $30,000
(Now, for the Influence Factor.)
By telling five people for each of the six repairs: Total Lifetime Value: 30 people told Average Insurance-paid R.O.: $5,000 Average Lifetime Value of Referrals: $150,000 With their repairs, the total lifetime value: $180,000 (above plus $30k)
Summary
The entire sales and service process is a huge circle of introducing you, earning and maintaining trust, offering an advisory tone, delivering on fair and safe repairs, and then building and cherishing customer relationships. It’s when the entire circle is completed with compassion and a keen eye for customer needs that the magic happens: customers repeat the repair experience and are willing to go out on a limb and refer your repair center to others. Build a sales and service culture and watch your customers become a gold mine for years to come!
SO, YOU’VE DECIDED TO SELL YOUR BUSINESS
There are many vital steps to take before hanging a “for sale” sign in the window.
By TODD KORTEMEIER
THEY SAY IN BUSINESS that timing is everything. Unfortunately, they don’t offer any MBA courses on being in the right place at the right time. Good timing is honed through experience, of knowing to strike when the iron is hot. Or maybe you just go for it and get lucky.
When it comes to selling your business, the right time may mean the time at which you get the maximum value. But it also may mean it’s the time when you have the right buyer who is ready to close the right deal that will be free of headaches and complications. Above all, there is such a thing as
being too late, and you never want to end up there.
“Every owner of a body shop will, I believe, exit his business in one of six ways, and only one of six ways,” says Stuart Sorokin, managing member of Business & Legal Advisors, a consulting firm that specializes in the auto body industry. “He will sell it to family, he will sell it to management, he will sell it to a third party, he becomes an absentee owner, it gets liquidated, or he dies. But if you don’t choose one of the first four, the last two will happen.”
Thinking about your succession plan is important as you reach the latter stages of your career as a business owner, but once you’ve made the decision to sell your business, there are vital steps to prepare both you and the business for life after a sale.
KERKEZ / ISTOCK / GETTY IMAGES PLUS
“A HIGH PERCENTAGE OF DEALS THAT DON’T CLOSE ARE DUE TO FAILURES IN DUE DILIGENCE.”
—Stuart Sorokin, managing member of Business & Legal Advisors
Evaluate Your Goals
If your goal is simply to unload your business at any cost, then this process would be easy; for the right price, someone would be glad to take it off your hands. But most business owners have a number in mind that they need to walk away with, whether that number represents their retirement fund, their investment into another business, or for whatever the next stage in life holds. Seeking advice on your sale often comes at a cost, but Sorokin recommends working with a financial planner to determine what that number is for you.
“There’s no sense in going through a sale if you’re not going to get enough money that you can retire and do what you want,” Sorokin says. “So, at that point, you need to look at where your number should be and then decide, ‘OK, if I’m not there, how am I going to get there?’”
In the event of a shortfall between the number you need and the estimated value of the business, based on gross sales, number of locations, and rent factor, it may not be the right time to sell, allowing time for further business growth. That evaluation is something of a “pre-step” before even getting to the market and before getting a full appraisal of the business.
“So that, to me, is the first point, in a sense, because you’re not going to accept an offer that’s not going to get you where you want,” says Sorokin.
Understand Where Your Value is
Once the decision is made to pursue a sale, there are a few things you’ll want to ensure are in place, according to Sorokin. One of the first is to make sure that any key employees will be remaining with the business. The acquiring party will want that assurance and also know they won’t have any potential competitors in the making.
“The acquirers would potentially have a problem and could say, ‘Hey, if you don’t have these guys bound by some kind of noncompete or nonsolicitation, that’s a problem, because I don’t want your guys opening up a shop around the corner from me,” Sorokin says.
Failure to deliver key employees is one of the top reasons that deals fall apart, says Sorokin, and another is failure in due diligence. It’s important to build a due diligence library, encompassing all the numbers that an acquirer is going to want to look at. “Sixty percent of the deals that go to a letter of intent don’t close, and a high percentage of them (are due to) failures in due diligence,” Sorokin says.
One maybe under-the-radar thing to consider is separating your real estate and your business operations into separate entities. Especially in acquisitions by consolidators, the buyer may prefer to lease real estate, not buy it. Real estate carries with it certain headaches such as environmental concerns; the investment is in the body shop, not the land it’s on.
“I just did a deal where I sold a body shop for $8 million, but the underlying real estate they rented, they had a 20-year lease at current rent of about $300,000 a year,” Sorokin explains. “So the purchase price was being dwarfed by the total lease value. And people will focus so much on the asset purchase agreement even though, potentially, the lease is the more valuable piece.”
Consider Some Guidance
Whether or not to use a broker in your deal is a big decision. While brokers bring a lot of expertise and help smooth out the process, that assistance comes at a hefty cost — five to 10 percent of the sale proceeds, according to Sorokin. Where brokers can come in really handy is if a shop’s diligence and documentation are not organized — as their payment depends on the sale, that is one area they can ensure is top notch.
“Some people pay a broker because the broker is going to help their people do all the paperwork that’s going to be needed for the buyer,” Sorokin says. “In other cases, I’ve seen brokers do virtually nothing and the attorneys end up doing all that work.”
Brokers can also assist in taking an asset to market, though there are any number of ways a seller can get matched with a buyer. Besides the common situation of selling to family, some sellers get contacted initially by consolidators, and never even
have to market themselves. Or, Sorokin offers an example of a paint contractor who works with a consolidator in the area as the kind of connection that could facilitate a business relationship.
“That paint guy may be more than willing to hook you up with the franchisor because he wants to keep selling paint, right? And if you switch, he loses that work,” says Sorokin.
When a sale reaches the stage of signing a letter of intent (LOI), Sorokin strongly recommends having attorneys involved to review an LOI before the seller signs it. Sorokin also advises that if working with a broker, the broker may push a seller to sign an LOI quickly to avoid getting lawyers involved and hold up the sale.
“Until the seller signs the letter of intent, he’s like Cinderella at the ball; everyone wants to dance with them,” says Sorokin. “The minute he signs the LOI, he’s now like Cinderella the next morning in the fireplace, cleaning out the ashes, because the buyer is going to try to do everything possible to renegotiate the price.”
Be Sure of Next Steps
As in any sale, there is always the possibility of seller’s remorse or regrets about doing things differently. This is where the preparation process is key. Sorokin asks if you as the seller are truly willing or not to walk away from your business.
“Most sellers, their business is their baby,” says Sorokin. “They don’t do real well necessarily, when they’re working in what
was their business and someone’s making decisions that they don’t agree with.”
Above all, through proper preparation, consideration, gathering of documents, and consultation with experts, a sale can proceed with, at minimum, few surprises. Not all deals come together for whatever reason, but doing as much work as possible up front will help make a smoother process.
“I see deals that fall apart because buyers and sellers think they have a deal and they don’t, I’ve seen some deals where buyers and sellers have gotten together and it’s not the panacea they thought it was, and that ends up in some, sometimes, very bad situations,” Sorokin says. “And sometimes, I’ve seen some deals where parties are right in alignment, and everything goes really smoothly.”
ROBERT DALY / OJO IMAGES / GETTY IMAGES PLUS
The Rising Pushback from Insurance Companies: A Challenge for Auto Collision Shops
Now is the time to plan how to not only survive but potentially emerge stronger in a competitive and changing environment.
In the world of auto collision repair, a familiar refrain has emerged among shop owners: "Are we experiencing increased pushback from insurance companies?" The answer is a resounding yes. As I engage with various shops, it becomes clear that this issue is widespread, impacting the industry as a whole.
The Current Landscape
Insurance companies are tightening their belts, leading to significant changes in how they handle claims and payouts. Many collision repair shops report that insurers are increasingly reluctant to cover costs that we as an industry have pushed to be considered standard operating procedures. This shift leaves shop owners grappling with the consequences, resulting in widespread frustration and uncertainty. Collision shops find themselves in a position where they must advocate more vigorously for the services they provide or, in some cases, pass increased costs on to customers.
One major factor contributing to this pushback is insurance companies' focus on cost management. With rising operational costs and economic pressures, insurers are scrutinizing claims more closely than ever before. Repairs that might have previously been easily approved are now subjected to intense examination, often resulting in delays and denials. This not only affects the workflow of collision shops but also impacts customer satisfaction, as clients face unexpected hurdles in getting their vehicles repaired.
Aggressive Stance on Total Losses
Moreover, insurers are taking a more aggressive stance on totaling vehicles. In many cases, vehicles that could be repaired are being deemed total losses, leaving both shop owners and vehicle owners dissatisfied. Insurance companies know they can cut their losses by totaling vehicles, as they can subsequently sell them at auction and recoup a significant portion of their investment. This shift not only affects the bottom line for repair shops but com-
plicates relationships with customers who may feel abandoned by their insurance providers. This trend creates a cycle of distrust; customers may be hesitant to engage with their insurance providers, leading to potential disputes and negative experiences that could harm the shop's reputation.
Economic Implications for Collision Shops
For auto collision shops, the tightening of insurance payouts can have dire consequences. Shops that rely heavily on insurance work may find their revenue streams threatened, forcing them to adapt their business models. Many are looking for alternative income sources or diversifying their services to mitigate the impact of these insurance changes. For instance, some shops are branching out into services like detailing, maintenance, or offering rental vehicles to customers while their cars are being repaired.
Additionally, the need for more thorough documentation and justification of repairs has increased. Technicians must ensure they are meticulous in their work and documentation to provide the necessary evidence to support claims. This not only adds to the workload but can create tension between shops and insurers, as discrepancies in paperwork can lead to further disputes.
Strategies for Success
To succeed in today's challenging environment, repair shops need to take a proactive approach. Establishing strong relationships with both customers and insurers can have a significant impact. Being transparent in communication — such as including customers in all correspondence and setting realistic expectations regarding insurance coverage — can help reduce frustrations when claims face delays or denials.
Now is the time to assess your shop’s operations, focusing on what’s effective and what isn’t. Streamlining processes, investing in training for staff on proper documentation practices, and enhancing customer service can position a shop for greater resilience.
Additionally, utilizing technology, such as repair management software, can aid in documentation and communication with insurers, ensuring all claims are supported by robust evidence.
Adapting to a Changing Landscape
The pushback from insurance companies is a reality that every auto collision shop is facing today. As insurers tighten their purse strings and adopt more stringent policies, shop owners must navigate this evolving landscape with adaptability and resilience. By focusing on strong customer relationships, meticulous documentation, and strategic business practices, repair shops can weather the storm and continue to thrive. In conclusion, while the challenges posed by insurance companies may seem daunting, they also present an opportunity for auto collision shops to innovate and enhance their business practices. By staying informed, adaptable, and customer-focused, shops can not only survive but potentially emerge stronger in a competitive and changing environment.
Critical Considerations
Position your shop for success in the new year with
As 2024 draws to a close, it's time for us as shop owners to take stock of 2024 and plan strategically for 2025. The end of a fiscal year is more than an accounting exercise; it's a critical opportunity to review and reflect on your business operations, ensuring that you’re primed for success in the year ahead. To streamline this process, let's walk through key areas to focus on, from reviewing expenses to setting goals for the future.
Reviewing Year-End Expenses
A comprehensive review of your year-end expenses is essential. By analyzing your financials, you can identify which costs are necessary and which can be trimmed. This will not only help improve your profitability but also provide insights into where your resources are best allocated.
Importance of Expense Analysis: Taking the time to analyze your expenses allows you to understand where your money is going and uncover any areas of overspending. Are there recurring costs that don’t contribute to your bottom line? Are there investments that yield high returns? Asking these questions will help you optimize your spending.
Identifying Essential Costs: Distinguish between essential and non-essential expenses. Essential costs might include high-quality materials or critical equipment maintenance that supports your work quality. By identifying these, you can ensure they remain a priority in your 2025 budget.
Assessing Staff Levels and Competencies
Your team is one of your greatest assets, and assessing their capabilities is crucial for ensuring production efficiencies and supporting your shop's growth.
Evaluating Staffing and Budget Needs: Evaluate if your current staffing levels and departmental budgets are meeting your operational needs. Are there areas where you're understaffed or overstaffed? Consider how departmental budgets are aligned with your strategic priorities.
Analyzing Production Efficiencies: Reflect on whether you met your production efficiency goals in 2024. If not, analyze why this was the case. Were there skill gaps within your team? Did certain processes need more effective management? Use these insights to plan for training or hiring in 2025.
comprehensive reviews and clear goal-setting.
Vendor Relationship Evaluation
Vendors play a key role in the smooth operation of your business. Evaluating these relationships can help you understand their impact on your profitability.
Reviewing Performance and Profitability: Assess your vendors' performance and contributions to your profitability in 2024. Have they consistently met deadlines and quality expectations? Did they offer competitive pricing? Use these insights to decide whether to continue, renegotiate, or terminate contracts for 2025.
Considering Vendor Adjustments:
Based on your evaluation, consider what adjustments, if any, are needed in your vendor relationships. This might involve negotiating better terms, exploring new partnerships, or consolidating suppliers to streamline operations.
Marketing Campaign Analysis
Marketing is essential for driving your shop's growth. Reflecting on your marketing efforts will help you set realistic goals for 2025. Examine whether you had a defined marketing budget and if it was adhered to. Analyze the performance of your campaigns relative to this budget. Did they deliver the expected ROI? Identifying areas for improvement can guide your future marketing strategies.
Setting Marketing Budget Targets: For 2025, aim to allocate 4-10% of your annual gross to marketing campaigns. Having a robust budget ensures you can effectively promote your services and reach new customers. Remember, marketing is an investment, not just an expense.
Allocating Administrative Time for Budgeting
Budgeting is a crucial task that demands dedicated time and attention. Prioritizing budget discussions is crucial, and if you're not doing so regularly, you need to start as soon as possible! Allocate specific time to discuss departmental budgets with your team. This will encourage collaboration, ensure all voices are heard, and encourage buy-in, leading to a more comprehensive budgeting process for the future.
Balancing Past and Future Goals: Use past expenditures and outcomes as a guide to prioritize future budgets. Balance your lessons learned with your aspirations for 2025 to ensure
you’re financially prepared for the challenges and opportunities ahead.
Strategic Planning for 2025
With a clear understanding of where you stand, it’s time to set your sights on the future. Exploring business strategies is something I think we all tend to think about but never really write down and discuss often enough. When we have the discipline to sit down and do so, I find it actually a lot of fun! This experience shared with the right team members can become very invigorating. Consider different strategies for 2025 based on your business goals looking forward.
1. Are you planning to grow? Looking to maintain your current flow?
2. Want to reduce staff and stress or perhaps even sell?
3. Understanding each strategy demands a unique approach is critical.
Use past metrics to inform your future strategies. What worked well, and what didn’t? By building on your successes and learning from your failures, you’ll be better equipped to make informed decisions.
Taking Action
You’ll position your shop for success in 2025 by conducting comprehensive reviews and setting clear goals. Allocate time to discuss these areas with your team, and remember, strategic planning is not just about data; it's about vision, leadership, and proactive decision-making. Start today and make 2025 your best year yet!
DREW BRYANT has been the owner of DB Orlando Collision since August 2011. A 20 group leader, in-demand conference speaker, and award-winning shop owner, Bryant takes a nontraditional approach to process implementation, lean process development, and overall operational experience while remaining dedicated to his staff’s personal and professional development.
EMAIL: drew@orlandocollision.com
ARCHIVE: fenderbender.com/bryant
“T”
Recycled Transmissions and Engines are carefully removed from the vehicle in one of our state-of-the-art dismantling plants, inspected for damage, and inventoried with consistent descriptions and accurate donor vehicle mileage to ensure quality.
Remanufactured Transmissions and Engines go through a systematic process and are restored to “Like New” condition, meeting or exceeding OEM specs. Most LKQ Remanufactured Transmissions come with 3-Year Unlimited Mileage warranty, and most LKQ Remanufactured Engines come with a 4-Year Unlimited Mileage warranty.
LKQ has been ranked as one of America’s Most Responsible Companies of 2024 by Newsweek and received certification as a Great Place to Work for 2024. To be a part of our growing team of passionate parts people, apply now by scanning the QR code.
