FenderBender - December 2017

FENDERBENDER.COM / DECEMBER 2017

ONE SHOP’S SECRET TO LEADING P&M MARGINS PA G E 5 0

IS HDT YOUR NEXT PROFIT CENTER? PA G E 16

Strategies & Inspiration for Collision Repair Success

EVERY SHOP’S MUST-HAVE EQUIPMENT LIST PA G E 5 4

2017

TECH TOOLS SURVEY AND

Inside the industry’s great technological shift PA G E 3 2

MIKE ANDERSON:

SET PROPER GOALS. IGNITE GROWTH. PA 1G E 5 6 December 2017 | fenderbender.com

Advancing the art of refinishing into the future.

NOW THAT’S HIGH PERFORMANCE The ENVIROBASE High Performance refinish system combines the latest ®

translucent and opaque pigments with an OEM-like spectral gray undercoat system. The result is a finish with a depth of clarity and crispness unrivaled by other paint systems. Another reason why the Envirobase High Performance brand is the leading premium waterborne basecoat system in North America.

SUPERIOR COLOR ACCURACY HIGH PRODUCTION THROUGHPUT COST-SAVING EFFICIENCIES

envirobase.com ©2017 PPG Industries, Inc. All rights reserved. The PPG Logo and Envirobase are registered trademarks of PPG Industries Ohio, Inc.

december

12 .17 / V O L U M E 19 / N U M B E R 12

All by Design Clay Hoberecht spent 16 years cultivating his repair model before opening Best Body Shop in 2014.

F E AT U R E

C A S E S TU DY

S H O P TA L K

32

50

58

A deep-dive look into the industry’s ability to adapt to the rapid advancements in vehicle and repair technology through our 2017 Tech and Tools Survey.

Tired of miniscule margins, Brian Martin made a push in his Florida dealership shop to overhaul processes in order to improve the business’s paint and materials margins.

Clay Hoberecht doesn’t separate his personal life from work—and it’s helped his business craft a team-focused, unified culture that’s led to substantial growth

TECHNOLOGY EXAMINATION

AVION PHOTOGRAPHY

BY TRAVIS BEAN

THE P&M PUSH

BY NOURA ELMANSSY

UNIQUE BALANCE

BY TESS COLLINS

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

December 2017 | fenderbender.com 3

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

DECEMBER

QUICKFIX

25

CSI debate: in-house vs. thirdparty measuring

PAST THE PAGE

ANALYSIS

Highlights from the 2017 SEMA Show

Inside the HDT emergence

11

18

2018 conference dates unveiled

CARSTAR COO on handling disaster

12

21

One top tech’s tips for quality control

OEC wins award

13

DRIVERS SEAT The change mindset

22

SNAP SHOP

Prepped and Ready RBP Auto Collision Center in Oregon keeps its vehicles flowing through the shop with an efficient, systematic approach.

Better Quality No more tape lines or missed edges.

Factory finish every time.

HOLDS: HOODS TAILGATES DOORS LIFT GATES CARGO DOORS DECK LIDS FENDERS

22

Increase Spray Booth Capacity

PACE Paint Finishing System

RBP Auto Collision Center

THE BIG IDEA

Why your shop’s reputation is a reflection on your leadership skills

BY KEVIN RAINS

Reduce Materials No more vehicle masking.

Spray multiple jobs at the same time.

> INNOVATIVE DOOR-FENDER STAND Part # I-DF

< INNOVATIVE ULTRA RACK Part # URPS

4

HOW IT WORKS

29

LIGHT HITS

AWARDS INSIGHT

NUMBERS

27

VIEWPOINT

CONFERENCE NEWS

• • • • • • •

16

CHRIS LAWRENCE

9

GO TO INNOVATIVETOOLS.COM TO FIND A DISTRIBUTOR AND SEE HOW WE CAN fenderbender.com | December 2017 MAKE YOUR SHOP MORE EFFICIENT

< INNOVATIVE SUPERSTAND Part # SS-II

1.866.4 38.4 88 4

S T R AT E G Y

45

54

62

Your go-to guide for effective holiday bonus programs

The must-have equipment for the modern repairer

A look inside CARSTAR Berlin’s effective hiring

IDEA SHOP

48

SALES +MARKETING

Three marketing pros recommend the books that most impacted their careers

TECH+TOOLS

UPDATE

56

63

Are you setting true goals, or just ‘wishing’ for change?

The importance of blueprinting

ON THE BUSINESS

IN THE TRENCHES

BY STEVE MORRIS

65

BY MIKE ANDERSON

INNOVATIONS

THINKSTOCK

45

The unique storage solution at Peotter’s Auto Body

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

TO SUBSCRIBE OR RENEW FOR FREE TODAY, VISIT

FENDERBENDER.COM/SUBSCRIBE December 2017 | fenderbender.com 5

WIRED FOR

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

ONLINE EXTRAS

SUCCESS

CLICK ON THE LOGO BELOW FOR PRODUCT INFORMATION

You’re wired differently and we like that. America likes that.

COMPLETE

DIAGNOSTIC CODING & ADAPTATIONS+ ADVANCED SERVICE FUNCTIONS+ ALL SYSTEMS DIAGNOSTICS

Visit futuretechsuccess.org and find out how your hands-on talent is the key to an amazing technical career.

AIRS FASTER WITH AUTEL SERVICE TOOLS.

American Honda Motor Company

ChemSpec USA

When Techs Rock, America Rolls ℠ futuretechsuccess.org

Innovative Tools and Technologies

TechForce Foundation

FUTURETECH

SUCCESS

™

MAXISYS MS906TS 8

IN

SCREEN

COMPLETE DIAGNOSTICS • • • •

Bi-Directional Control Advanced Service Functions All Systems Diagnostics MaxiSYS Suite Applications

Autel

Collision Repair Education Foundation

Kia Motors America

Auto Job Central

Equalizer

NRD, LLC

Axalta Coating Systems

Equip Automotive Systems

O'Reilly Auto Parts

Collision Repair Technologies

CAPA

6 fenderbender.com | December 2017

Estify

PPG

U.S. Chemical and Plastics

EDITORIAL Bryce Evans Editorial Director Anna Zeck Managing Editor Travis Bean Associate Editor Noura Elmanssy Staff Writer Alex Van Abbema Staff Writer Tess Collins Custom Content Producer Kathleen Sapien Web Content Producer Mike Anderson Contributing Writer Kevin Rains Contributing Writer Steve Morris Contributing Writer

The ultimate collision repair app.

EDITORIAL ADVISORY BOARD Jason Boggs Boggs Auto Collision Rebuilders Elissa Larremore CBS 1 Collision Robert McSherry North Haven Auto Body Mark Probst Probst Auto Body Randy Sattler Rydell Collision Center

ART AND PRODUCTION Zach Pate Art Director Audrey Mundstock Graphic Designer Becca Sugden Graphic Designer Fue Vang Graphic Designer Leah Quinto Production Artist Erin Keefer Graphic Design Intern

SALES Chris Messer Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson National Advertising Sales 651.846.9459 / ajohnson@10missions.com Alex Linkert National Advertising Sales Associate 651.846.9469 / alinkert@10missions.com Matt Mortinson Regional Sales Manager 651.846.9452 / mmortinson@10missions.com Tyler Keehr Regional Advertising Sales 651.846.9460 / tkeehr@10missions.com Melody Todd Regional Advertising Sales 651.846.9468 / mtodd@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com

RADIO

10 MISSIONS MEDIA Jay DeWitt President Anders Seefeldt Marketing Communications Specialist Mariah Straub Sales Service Supervisor Meghann Moore Sales Service Representative Katie Cornet Event and Special Projects Coordinator Josh Jaskulka Digital Media Associate HOW TO REACH US 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com SUBSCRIPTION SERVICE tel 800.869.6882 fax 866.658.6156 email subscriptionservices@fenderbender.com. The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender.

BACK ISSUES Past issue single copies are $8.

Go to fenderbender.com/backissues LETTERS TO THE EDITOR letters@fenderbender.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue call 651.846.9473 or email reprints@ fenderbender.com.

Opinions expressed in FenderBender are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.

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December 2017 | fenderbender.com 7

Having the Right Parts is

WHERE IT STARTS.

Genuine Parts

Genuine Parts

But it's MORE Than Just the Right Parts.

For today’s vehicles, you need quality parts, accurate repair information, tools and training to deliver complete and proper repairs. That is why, in addition to Honda and Acura Genuine parts that provide proper fit, function and reliability, we are committed to providing shops with current and complete information through Service ExpressTM, and support I-CAR® training and VeriFacts coaching. Today’s Honda and Acura automobiles are highly technical and sophisticated. Consumers need a properly repaired vehicle. Shops need an edge to help them make those repairs.

When it comes to getting it right, the best repairs begin and end with Honda and Acura brands, your trusted source for parts and information, and expert industry resources that help you deliver a complete repair. ©2017 American Honda Motor Co., Inc.

®

®

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

FAC E B O O K

PODCAST

Top SEMA Show Coverage

With a focus on quality and providing the latest news from the 2017 SEMA Show, the FenderBender staff shot more than 10 Facebook Live videos on the latest technology and offerings for collision repairers. Check out some of our top performing videos.

COLLISION C A S T

In this month’s episode, web content producer Kathleen Sapien speaks to Casey Lund, the manager of Warrensburg Collision Center in Warrensburg, Mo. Lund describes his leadership approach and the impact lean practices have had on the shop’s culture.

Listen now at fenderbender.com/CollisionCast

3M gave a live demo of its new PPS Cup Series 2.0. fenderbender.com/3MPPSCupSEMADemo

T W I T T E R @FENDERBENDERMAG

Staff writer @KellyBeaton got to personally test out @3M’s new PPS Cups at its outdoor spray booth at @SEMASHOW

@nouraelmanssy: Starting off the day at SEMA 2017 talking OEM repairs! #SEMA2017 #FenderBender

@TL_Bean: The @SEMASHOW Launch Pad showcases young entrepreneurs pitching their businesses to iconic industry judges #SemaShow ALLDATA gave a live tutorial of the SEMA Show’s Best New Product, ALLDATA’s Collision. fenderbender.com/ALLDATASEMADemo

At the PPG booth with Charley Hutton #SEMA2017.

TOP NEWS

AkzoNobel Debuts Workflow Management Tool

During a press conference, AkzoNobel unveiled Carbeat, a system that allows users to check inventory and vehicle status. fenderbender.com/AkzoNobelNewTool

STAFF PHOTOS

John Eagle Collision Case Re-examined

The recent trial involving John Eagle Collision, which resulted in a headline-grabbing, $42 million verdict, was re-examined in vivid detail at the 2017 SEMA Show. fenderbender.com/JohnEagleCaseSEMA

FOLLOW US ONLINE

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

FENDERBENDER

C O N G R A T U L A T E S THE 2017 ADS OF THE YEAR! WE ASKED YOU, OUR FENDERBENDER READERS, TO PICK YOUR FAVORITE ATTENTION-GETTING, INFORMATIVE AND MEMORABLE ADS.

B:8.125” T:7.875” S:6.875”

Having the Right Parts is

SATAjet®1500 B SoLV

DON’T FRANKENSTEIN YOUR CUSTOMER’S VEHICLE.

WHERE IT STARTS.

For more options in the application of solvent materials The SATAjet 1500 B SoLV in HVLP and RP, provides fine finishes with cost saving transfer efficiency and keeps the wetting that is required using today’s Low VOC exempt solvent basecoat or the more traditional National Rule solvent basecoats. The SATAjet 1500 B SoLV is also a good choice for clearcoat appearance while meeting transfer efficiency and profitability expectations.

Designed

for Full System Application: solvent-based basecoats, either Low VOC or National Rule as well as sealer and clearcoat. even spray pattern air pressure range from 7 – 35 psi. HVLP max 26 psi. working speed value spray gun

Nice-sized, Wide Fast

Excellent B:11”

S:9.75”

T:10.75”

Genuine Parts

Genuine Parts

But it's MORE Than Just the Right Parts.

Beware of Dog First, the bark: Dominator Bed Liner from U.S. Chemical and Plastics is a urethane-based spray that offers superior coverage in a premeasured kit. Just shake, spray, dominate. Now the bite: Dominator provides unmatched toughness and UV resistance to chalking at a lower price than expensive franchise liner systems and outdated plastic drop-ins.

For protection that has bark and bite, unleash Dominator Bed Liner.

For more information, visit dominator.uschem.com.

TM

For today’s vehicles, you need quality parts, accurate repair information, tools and training to deliver complete and proper repairs. That is why, in addition to Honda and Acura Genuine parts that provide proper fit, function and reliability, we are committed to providing shops with current and complete information through Service ExpressTM, and support I-CAR® training and VeriFacts coaching. Today’s Honda and Acura automobiles are highly technical and sophisticated. Consumers need a properly repaired vehicle. Shops need an edge to help them make those repairs.

Although it might fit, that doesn’t mean it’s the best choice. That’s why professionals trust Genuine GM Parts for their GM collision repair projects. They are the only parts tested to

GM factory specifications and engineered for proper fit, form, and function – giving your

Nozzle size

technicians the parts they need to get the job done right. When it comes to collision repair,

HVLP RP

Standard with RPS cups 0.3 l, 0.6 l, 0.9 l, 1 ea.

stick with the original. Use Genuine GM Parts. Visit genuinegmparts.com/collisionparts.

1.3 1.3

1.4 1.4

1010925 1010933

Further information: www.sata.com/SATAjet1500

1010892 1010917 1010967 1010975

Nozzle Set

1010941 1010959 RP version is approved for SCAQMD. U.S. Chemical & Plastics, A Valspar Automotive Brand. ©2017 The Valspar Corporation.

©2017 General Motors. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.

Pending EPA approval.

The exclusive independent distributor of SATA products in the US and Puerto Rico

Phone: 800-533-8016 www.satausa.com

7/7/17 11:37 PM

GMQD17MGE10_DontFrankenstein_PG.indd

GGMP

B1341-002950 (010-GWSCOMG7002)

®

8/1/17 Julie Swartz

Joe Mariucci

Kendra Giacona

Samantha Wood

□ BLEED □ LIVE AREA

MIDWEST

8/2/17 11:10 AM 8/4/17 10:14 AM

PG 4CB

8.125” x 11” 7.875” x 10.75” 6.875” x 9.75” None

4 7-7-2017 3:59 PM

Actual Size

16GMGP00353_v2.tif, 14GMGP00313 GMGP_4C_DBB_70K TYPE_HZ_POS.ai

Avenir

swop

BABCOX-July.indd 1 06_MB USA_0817.indd 6

7/10/17

Tom Rippinger Chris Cocozzoli

GGMP:2017 GGMP:B1124-006220 B1341-002950-00 17 GGMP Franken Collision Print:Documents:GMQD17MGE10_DontFrankenstein_ PG.indd None

g

TECH USA

©2017 American Honda Motor Co., Inc.

6/30/17 12:10 PM

17 GGMP Dont Frankestein

Fender Bender Times

B1124-006220

17-0630 FenderBender_1500SoLV.indd 1

®

When it comes to getting it right, the best repairs begin and end with Honda and Acura brands, your trusted source for parts and information, and expert industry resources that help you deliver a complete repair.

E-mail: satajet@satausa.com

SATA, SATAjet and/or other SATA products referenced herein are either registered trademarks or trademarks of SATA GmbH & Co. KG in the U.S. and/or other countries.

GMQD17MGE10__196487A03.indd 1

Golf 2013

196487A03

TECH USA

3rd Assembly 07/07/17

Winners were chosen from eligible national print ads in the August 2017 issue.

Particpating advertisers include: American Honda Motor Co, Axalta Coating Systems, Car-O-Liner Company, Certified Automotive Parts Association (CAPA), ChemSpec USA, Chief, Estify, Genuine GM Parts, Global Finishing Solutions, Kia Motors America, LAUNCH Tech USA, OEConnection, Polyvance, PPG, SATA/Dan-Am Company, Sherwin-Williams Automotive Finishes, U-POL, Valspar Automotive

2017

T H E

L A T E S T

N E W S

O N

T H E

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

M A N A G E M E N T

C O N F E R E N C E

2018 DATES ANNOUNCED For the third year in a row, the FenderBender Management Conference will return to Lombard, Ill., in 2018 as its event site. We choose the best speakers for the most critical topics, and all of them are highly experienced shop leaders themselves, or industry thought leaders. Last year’s speakers included Mike Anderson (owner, Collision Advice), Kevin Rains (owner, CARSTAR Center City in Cincinnati and CARSTAR West Chester in West Chester, Ohio) and Matt McDonnell of Big Sky Collision in Montana. Mark your calendars and stay tuned for future announcements.

SEPTEMBER 17-19, 2018 THINKSTOCK

at the Westin Lombard near Chicago

WIRED FOR

SUCCESS

You’re wired differently and we like that. America likes that.

Visit futuretechsuccess.org and find out how your hands-on talent is the key to an amazing technical career.

When Techs Rock, America Rolls ℠ futuretechsuccess.org

FUTURETECH

SUCCESS

™

December 2017 | fenderbender.com 11

AWARDS INSIGHT

FINES HE

T

T

DOUG ROCKER

CO

LLI

AI

IN

R

AWARDS P SION RE

Nominate Today

FenderBender Awards Insights feature past FenderBender Award nominees. To nominate an inspiring collision repair professional, or for more information, go to fe nde rbe nde raw ards .com .

There’s Room to Learn More.

An Eye for Detail AWARDS NOMINEE

DOUG ROCKER AUTO BODY TECH SPRAGUE’S COLLISION CENTER UTICA, N.Y.

Rocker says that the most important thing that he learned and the best advice he would give to incoming technicians is to ditch the idea that they have nothing to learn.

Rocker says he entered the industry with the mentality that he knew it all—and he was quickly shut down. He was outpaced and couldn’t keep up. So, he started looking to his co-workers for tips.

“You can learn a lot if you keep your mouth shut and listen to what other people have to say,” Rocker says. “Take all of that information and use it toward creating your own process.”

By showing he was committed and earning the trust of his co-workers, they took him under their wing and showed him the ropes. Rocker says he continues to learn new things all the time.

Check Everything. Then Check it Again.

BY TESS COLLINS 12 fenderbender.com | December 2017

Rocker’s gotten so good at finding imperfections or identifying problem areas that he says it’s not uncommon for his co-workers to ask that he checks over their work. Common areas where he’s seen people make mistakes are during reassembly, where people tend not to check every part before putting something together.

“You need to check all of the nuts and bolts to make sure everything is tight before you put the door on,” Rocker says. “Otherwise, it’ll go down the delivery line and someone will find that the window doesn’t go down.”

Rocker says he starts by looking closely at the repair area.

Then he checks the rest of the vehicle, making sure to check body lines, clear dust nibs, check the electrical system and anything else he can think of. Then, he makes sure that there’s nothing that would make a customer unhappy, such as overspray or a dirty interior. After all of that, he’ll have his boss give it a once-over.

“I always make sure that each vehicle I put out is something I would be happy as a customer picking up,” Rocker says.

Do What You Love.

Rocker says that he doesn’t think that his process is necessarily better than anyone else’s, but that his passion for what he does sets him apart. By refusing to settle for anything less than his very best work, Rocker consistently delivers top quality repairs the first time and avoids comebacks.

FUE VANG

Doug Rocker, auto body tech at Sprague’s Collision Center, earned his nickname “Eagle Eye” at the Utica, N.Y., shop thanks to his meticulous attention to detail. In her FenderBender Award nomination, Christina Sprague, office manager at Sprague’s, commented on Rocker’s relentless dedication to fixing the vehicles at the shop to the highest possible standard.

“Last winter, a new customer came in that had driven through some barbed wire fencing, resulting in dramatic damage,” Sprague wrote. “Upon drop-off, Doug marked the vehicle for every inch of damage that was caused and because of his attention to detail, he was able to catch significantly more damage than was captured on the original estimate. Because of his ability, he was able to save the customer time and money down the road. The customer was amazed at the repaired vehicle and there will be no rust or issues down the road, thanks to Doug’s keen eye for imperfections.”

Sprague says that this attention to detail has ensured customer satisfaction and has made him irreplaceable in the shop. The 22-year-old boasts 130 percent efficiency and often has others in the shop coming up and asking him to check over their work. In his two-year career, Rocker has learned some valuable lessons that have gotten him to where he is today.

D R I V E R ' S S E AT

Tech, Change and Improvement Finding new ways to push forward in 2018

NICK SPAETH

You’ve likely heard a variation of this quote before, but

this version comes from Henry Ford: “If you always do what you’ve always done, then you’ll always get what you’ve always got.”

That might be one of the most oft-cited concepts in modern business, but as you pore over this December issue of FenderBender, it’d be good to keep it in mind for a couple reasons.

The first is our cover feature, which highlights the results from our 2017 Tech and Tools Survey (page 32). This is the second time we’ve conducted this survey, the first being in 2014, and the differences in results are pretty staggering. I don’t need to tell you how much the industry has advanced and changed over the past three years, but it’s evident in the results. I won’t give it away here (I suggest checking it out), but it brings me to the next point.

The end of the calendar year (and, likely, your fiscal year in the previous weeks) provides a nice, clean breaking point from what you’ve done and what you hope to do. It’s a good time to analyze your goals, measure your success and reflect on personal growth. What do you want to accomplish in 2018?

I can tell you that at FenderBender, we’re readying a full slate of new projects we’ll unveil in the coming year, from webinars and additional podcasts to enhancements to our print and digital content. As we push ourselves to improve, we want to offer the tools and strategies you need to push your own operation forward.

Improvement can be difficult, and as the quote I referenced earlier alludes to, it only comes through change.

What are you going to change in 2018? What are you going to accomplish?

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

December 2017 | fenderbender.com 13

Copyright Š 2017 Axalta Coating Systems, LLC and all affiliates. All rights reserved.

The ultimate refinish experience.

Training for better precision, productivity and profitability.

Experience all this and more at our state-of-the-art Customer Experience Center.

See what the future of learning and development looks like.

axalta.us/experience

NEWS

|

IDEAS

|

PEOPLE

|

TRENDS

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

Tooling Up RBP Auto Collision uses a Chief frame rack to measure vehicles’ frames and and ensure its within OEM specs.

—

CHRIS L AWRENCE

PAGE 22

December 2017 | fenderbender.com 15

QUICK FIX

A N A L Y S I S

The HD Repair Forum aspires to be the heavy-duty collision repair market’s most prominent voice

BY TR AVIS BE AN

During the Advanced Technology & Diagnostic Repair Forum at the 2017 NACE Automechanika show, Brian Nessen couldn’t

help but notice a few alienated (and vocal) audience members.

“We kept finding these heavy duty shop owners, raising their hands, saying, ‘There’s nothing here for us,’” Nessen says.

While heavy-duty trucks introduce a plethora of issues normal collision repair shops rarely encounter, the heavy-duty truck market is similarly experiencing rapidly growing vehicle technology and insurance hurdles that require shop owners to constantly evolve and adapt.

So, while various industry conferences and consultants can address many universal collision concerns, one fact remained true for years: There was no go-to community for heavy-duty shop owners.

Well—there wasn’t a community.

Until now.

That’s because Brian Nessen established

16 fenderbender.com | December 2017

the HD Repair Forum, which consists of an advisory board featuring 11 of the top heavy-duty collision repair shop operators in North America. The issues this group addresses will, they hope, provide relief for the roughly 5,000 U.S. shops that, for so long, felt ignored—culminating with the upcoming 2018 HD Repair Forum Conference.

The HD Repair Community Infinity 3D Laser Measuring demonstrated its technology at trade shows for years—but, suddenly in 2016, a new customer was asking to be heard.

“At NACE (in 2016), three truck shops scattered around the country said (about our product), ‘This is wonderful.

Could you do it for trucks?’” recalls Sam Deering, COO of Infinity 3D Laser Measuring. “So, at the SEMA Show a month later, we made some changes to the software to show what the truck system could do. And we got a lot more interest there.”

Since tapping into the heavy duty

market, Deering has observed that, much like the broader collision repair market, the heavy duty audience is quickly changing. For years, baby boomers dominated the trade. But as those shop owners retire, there’s a sudden influx of business owners looking for guidance on emerging technology for heavyduty repairs. “[The baby boomers] can look at damage and know all the damage that’s occurred in other locations of the truck,” Deering says. “New guys don’t have that experience. They don’t know how to navigate. So with our system, they will look at the computer screen and see an MRI of the truck frame, front to back.”

The Players A majority of the shop owners that make up the HD Repair Forum advisory board (see sidebar) are represented by those millennials looking for guidance—including Chris Sterwerf, who has experience in creating change for heavy duty repairs on the mechanical side.

Sterwerf, COO of Fairfield Auto & Truck Service in Fairfield, Ohio, has worked with the Auto Care Association regarding the Right to Repair Act, which

THINKSTOCK

THE EMERGING HEAVY DUTY COMMUNITY

was initiated to deal with access and repair capability for on-board computers.

This act has largely benefitted independent shops—excluding heavy-duty shops, for which Sterwerf is fighting.

“It’s always been about mechanical. They’ve had a loud voice,” Sterwerf says. “It’s nice for them to now find a home for collision repair. That industry has been splintered and needs to find a home.”

The group also hosts Dean Hancock, owner of Bob Johnson’s Truck & Body in Cayce, S.C., who is part of Mike Anderson’s heavy-duty–focused Axalta business council.

The Forum’s Main Objectives The HD Repair Forum advisory board met for the first time this past October, and will continue to meet a few times each year.

Here are the topics the board determined are the most relevant to its audience at its first meeting: • OE repair support • Industry economics and trends • Estimating • Lean initiatives

• Weight reduction and the impact on repairs • Insurance challenges and opportunities • Hybrid and electric vehicles • Cycle time • Parts sourcing • Staffing, tooling and operational best practices • Training, retaining and hiring employees • Shop and business compliance

THE HD REPAIR FORUM ADVISORY BOARD The HD Forum advisory board consists of what Stone Fort Group partner Brian Nessen claims are the top heavy duty shop owners in the country: • Chris Sterwerf, Fairfield Auto & Truck Service, CFO/COO

The group will also plan for the HD Repair Forum’s inaugural conference early next year.

• Howard Elsenpeter, Hoglund Body & Equipment, Body Shop Manager

The Conference The 2018 HD Repair Forum Conference will take place April 10–11, in Fort Worth, Texas.

The event will open with a general session followed by presentations and panels on operational issues, best practices, trends and technical topics.

The event includes a reception for attendees and sponsors, as well as other high-level networking opportunities.

This conference is open to everyone involved in heavy duty collision repair.

• James Svaasand, Penske, Vice President-Collision Repair Ops & Dev

• Dean Hancock, Bob Johnson’s Truck & Body, Owner

• John Mueller, DCI Fleet, Director • Steve Wolfe, Diversified Body & Paint, President • Jason Shesky, Truck Zone, President • Ed Rietman, K&R Truck Sales Inc., Owner • Rodney Rowland, Lakeside International Trucks • Mark Polzin, Budget Truck Rental

December 2017 | fenderbender.com 17

QUICK FIX

V I E W P O I N T

PERSEVERING THROUGH THE STORM

The detailed plan for nearly 30 CARSTAR shops affected by the past hurricane season

BY TR AVIS BE AN

COO CARSTAR

18 fenderbender.com | December 2017

In its simplest form, what should a disaster preparedness plan look like?

I would say, one, make sure you have appropriate and proper insurance coverage for your facility. If you’re in Texas or Florida, you need to make sure you have flood insurance. You’re reading about the issue in Houston for a lot of people who don’t have flood insurance. There could be 15–20 inches of rain coming in a 24-hour period.

The second thing is to have an emergency communication plan. Determine how you will communicate with your employees and any significant local authorities you may need to utilize in the recovery following the storm.

Local services, like churches, can help mitigate damage.

Understand that your cell phone may not work for a period of time, that Internet may go down.

Then you need to protect and mitigate as much damage to any vehicles that are on the premises at the time. We talk about that with our shops. One shop hadn’t even thought about putting two cars up on hoists.

If I’m going to have 15 inches of water in here, I’ve got 20-inch stands I can put cars up on and two scissor lifts.

We had a shop that could protect 10 vehicles he had with scissor lifts, jack stands, and some hoists.

Beyond that, once I get through the shop area, you need to determine what to do if you lose power. What am I doing to protect the facility to the greatest degree?

Do you have generators in place? Will those work if they’re on the ground level?

COURTESY DRIVEN BR ANDS

DEAN FISHER

Dean Fisher has a six-month supply of food at his home. He’s got walkie talkies and scanners on hand. If there’s a tornado?

He’s got a generator in place. He even has six dated 5-gallon jugs of water in rotation at all times.

Suffice to say: If disaster strikes, Fisher is ready to bear the storm.

But not everybody is this well prepared, and Driven Brands experienced that truth on August 25, when Texas was hit by Hurricane Harvey, a Category 4 storm that resulted in historic flooding. For days, people were without power and experienced catastrophic damage to property, leading to the death of over 75 people in the Houston area.

Fisher, COO for CARSTAR, had to communicate with the 25–30 CARSTAR shops (50–60 stores if you include Maaco) in Texas and Florida affected by the past hurricane season from afar, and he says CARSTAR experienced some harsh realities in terms of disaster preparedness. There’s always more to learn and prepare for, and forming a plan should not be an afterthought—so here’s how CARSTAR persevered through the storms, and what plan any shop should have in place before, during and after disasters.

THINKSTOCK

How did CARSTAR handle the disaster from a broader, company standpoint?

Does CARSTAR review the disaster preparedness plan beforehand with shops?

Immediately, through our foundation here at Driven Brands, we set up a funding mechanism through the Red Cross and attempted to set up some funding mechanisms.

We have a three-stage communication protocol that we’re utilizing to make sure we can relay information from the storm, to determine at what level they are struggling or suffering and what has occurred there. In the case of Houston, we actually reached out to 3M and dispatched their 3M truck to one of their stores and parked it there in order to help some of our stores get material and get assistance in getting back up and operational as quickly as possible.

We have area directors and managers that are immediately queued up. What we do is we send out communications to them prior to an event, and then we communicate and remind them of some of the things they may want to look at. We begin to think about specific flooding issues that may occur for them and what they will need to do about that.

Our Houston stores weren’t as prepared for what occurred as our Florida stores, because they’re very used to hurricanes. We’re starting to feel, with more and more of these disasters showing up, a responsibility to build an emergency preparedness mitigation area within our learning management system. We have protocols in place around it, but we need to formalize it, and we’ll work to do that now.

Through our HR department, we have all kinds of training on shooters and situations like that, but I’m not sure we see that much training on emergency preparedness, other than team safety and what EPA and OSHA units do for us in our stores.

We have CARSTAR-U, which is a learning management system. And we’ve talked about putting more and more protocol in there regarding emergency preparedness. Stuff like putting together three-day packs, and what those should look like. A lot of that information is available to them.

December 2017 | fenderbender.com 19

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QUICK FIX

LIGHT HITS

New Chief Technology Chief Automotive Technologies recently unveiled its combination computerized measuring and wheel alignment.

OEC WINS AWARD FOR JAGUAR LAND ROVER ELECTRONIC PARTS CATALOG OEConnection won the Automotive Global Award for their next-generation electronic parts catalog (EPC) designed for Jaguar Land Rover.

The Automotive Global Awards recognize individuals and organizations who have excelled in the automotive logistics, purchasing and supply chain sectors.

Clifford Thames, an OEC company, received the award for teamwork in executing a new technology that streamlines operations.

The Jaguar Land Rover EPC is an application used by OEM/VM authorized retailers to identify service parts for the repair, maintenance and customization of vehicles.

In less than nine months, the OEC team was able to deliver a transformational EPC with enhanced functions, navigation and search for greater accuracy in parts identification for both Jaguar and Land Rover brands.

The Jaguar Land Rover EPC combines two separate EPCs (one for Jaguar and one for Land Rover) into one cohesive EPC that makes it easy for the parts department to quickly find the right part.

The roll-out on the new EPC to all Jaguar Land Rover retailers globally is nearing completion, with every retailer scheduled to be transitioned by the end of the year.

CHIEF

CHIEF PACKAGES COMPUTERIZED MEASURING WITH ALIGNMENT Chief introduced its LaserLockAlign, a combination computerized measuring and wheel alignment system. LaserLockAlign combines Chief’s LaserLock Live Mapping measuring system with its new C3080 3D wheel alignment system to create a versatile equipment package that can be used as needed throughout the shop. LaserLockAlign lets technicians easily measure and document collision damage; monitor changes in real-time during pulling; perform four-wheel alignments; and document all repairs – right in their own shops.

LaserLockAlign is completely portable and compatible with any frame rack, four-post lift or scissor lift at any height. It does not require a dedicated bay or a minimum bay size for performing alignments—there are no space-hogging towers necessary. It can be used in the estimating bay for more accurate and efficient blueprinting, on the frame rack or bench to quickly follow frame repairs with alignment, or in virtually any other bay where a quick check or alignment might be needed.

LaserLockAlign’s C3080 3D aligner can provide an alignment reading in just eight seconds. It is equipped with fixed cameras with automatic target search and recognition, tiregrabbing clamps and remote-controlled sensors. Its exclusive lightweight targets have no electronic components inside and require no maintenance. The patented measuring heads feature swiveling cameras that automatically find the targets placed on the vehicle’s wheels.

They have LED signal repeaters that flash intermittently during the alignment so technicians can open vehicle doors without interfering with the alignment process.

For computerized measuring, LaserLockAlign can simultaneously measure more vehicle reference points in real time than any other system. It can map an entire vehicle at once, making it possible to repair vehicles with diamond or twist damage, as well as frames with both front and rear damage. The Live Mapping allows technicians to measure and monitor dimensional changes as they occur during pulling, so there’s no need to recalibrate after every pull, and there’s less risk of putting more damage into a vehicle.

COLLISION CHAIN OF CUSTODY INTEGRATES WITH ESTIMATESCRUBBER.COM VenicleOwnersGuide.com announced the integration of Collision Chain of Custody (CCoC) with its EstimateScrubber.com portal.

CCoC offers repairers two easy ways to help protect their shops against litigation by recording and digitally managing their repair documentation.

EstimateScrubber.com subscribers can create a digital evidence bag containing important repair information, documentation and/or

photos, lock the packet with a digital fingerprint and download to their shop at no extra charge.

Repairers can opt to store their digital evidence bags in VehicleOwnersGuide.com’s digital evidence vault for a small monthly charge.

CCoC was created with Federal Rule of Evidence 902 (12) and (13) in mind. FRE 902 is routinely used by trial attorneys in civil and in criminal matters to introduce self-authenticating digital evidence.

CCoC creates digital fingerprints for individual documents’ and digital evidence bags. A digital certificate is provided with the individual documents' digital fingerprints, making it simple to validate the digital evidence bag contains unaltered copies of original documents.

CCoC is currently available at no charge to EstimateScrubber.com subscribers.

ALI OPENS NEW HEADQUARTERS, LIFTLAB The Automotive Lift Institute (ALI) opened its new headquarters and LiftLab in Cortland, N.Y. The new 8,500-square-foot headquarters is more than four times larger than the organization’s previous Cortland office. It includes 3,475 square feet of renovated office and conference space, as well as a classroom.

New to this facility is the LiftLab. ALI member manufacturers provided and installed 12 vehicle lifts in the LiftLab area.

They range from the smallest motorcycle lift to the most common two-post style, all the way up to heavy-duty inground and mobile column lifts.

This facility brings together a wide range of operational lifts from various manufacturers and makes them available for hands-on industry training.

December 2017 | fenderbender.com 21

QUICK FIX

SNAP SHOP

RBP AUTO COLLISION CENTER LOCATION:

Hillsboro, Ore. OWNER:

Chris Garcia SIZE:

20,000 square feet STAFF:

21

AVERAGE MONTHLY CAR COUNT:

125

1

ANNUAL REVENUE:

$3.5 million (projected)

1. GETTING ACQUAINTED WITH THE SPACE

2. BUILDING A UNIQUE WASH AREA A standout feature of RBP Collision Center is the outdoor, covered wash area, which was built right when they moved the building and doubles in use. Garcia’s dad operates an RV collision repair facility right next to RBP Collision, so both businesses use the same wash area for their vehicles. After the first winter rolled through, they added a cover to the wash area to protect their team members from inclement weather.

CHRIS LAWRENCE

RBP Collision Center is in a 20,000-square-foot warehouse with 18 bays designated for repair and six bays for paint.

When they first moved into this building, they had a designated 7,500 square feet.

Chris Garcia, CEO and vice president of RBP Collision Center notes that they needed more space, so they built out the facility to accommodate bays and his 11 technicians.

Garcia’s technicians average a 2.5-hour touch time per day.

Garcia’s paint department also got some updates. The paint department has two GFS cross-flow booths, one of which was added two years ago. Other equipment upgrades made to the shop include new welders, a Pro Spot sanding system and four Festool vacuum systems.

22 fenderbender.com | December 2017

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

2

4 3

3. CREATING A WELCOMING ENVIRONMENT Garcia’s main goal is to make customers feel like they are a member of the RBP family. In order to provide the best customer experience possible, he remodeled the office and customer waiting area. With this space, he wanted to have the building give off a modern, industrial feel. They’ve done that by removing the carpet and staining the concrete flooring. The ceiling was also redone and painted.

In the customer waiting area, as a nod to the industry, they also provide Hot Wheels for kids to play with.

4. ESTABLISHING A CONNECTION WITH CUSTOMERS Garcia wants to ensure his customers see RBP Collision as more than a business, so the shop provides some unique services to embody this thought.

On Fridays, the RBP team wears super hero T-shirts because, as Garcia notes, Fridays are the busiest days for them and they want to show customers that they can provide quality service and still have fun in the workplace.

They survey customers and send text messages every other day to provide status updates on their vehicles. Garcia gives out his personal phone number, so customers can get a hold of him.

RBP Collision offers loaner vehicles and an informal shuttle service, Garcia says the shop will hail Uber rides for customers, if needed. Additionally, his team will go the extra mile and occasionally drive customers somewhere in his or her own personal vehicle. All the person driving has to do is take an RBP Collision insurance card that provides vehicle coverage under the RBP Collision umbrella. The shop then pays to fill up that team member’s gas tank.

Garcia says it’s all up to the customer and what they prefer.

December 2017 | fenderbender.com 23

FIRST TAKE ON CAPA’S NEW RADIATOR AND AC CONDENSER STANDARD: COOL. VERY COOL. People who think CAPA is mostly about sheet metal crash parts are in for a pleasant surprise. The big news is now we’re also getting under the hood in a big way.

CAPA is proud to announce our expanded Certification Cooling Parts Standards which now encompass everything from ac condensers to radiators and even cooling fans. Which means we’re now putting these essential parts through a comprehensive testing regimen for performance, leak resistance, burst resistance, and heat exchange as well as fit in order to determine their worthiness for CAPA Certification.

Cooling parts are virtually impossible to evaluate, even for professionals who have little to rely on without access to testing facilities and equipment. Installing and then testing is impractical, costly, and time-consuming—even if parts are warranteed.

Now with our expanded Cooling Parts Certification program, there’s no hit or miss. Every CAPA Certified part has been tested to the industry’s highest standards. Those that pass our exhaustive testing are easy to identify. They all bear the distinctive yellow and blue CAPA Quality Seal.

Our new testing and certification of cooling parts is one more reason why insurers, repairers, and vehicle owners can depend on the safety, reliability, and performance of CAPA Certified parts.

We think you’ll agree that is very cool indeed.

TM

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

capacertified.org

Know your numbers

QUICK FIX

Have ideas on improving cycle times?

NUMBERS

f e n d e r b e n d e r. c o m /n u m b e r s

IN-HOUSE VS. THIRD-PARTY METHODS FOR MEASURING CSI

IN-HOUSE

THIRD-PARTY SERVICE

ANNUAL REVENUE ABOVE $1 MILLION

More shops use third parties to track CSIâ&#x20AC;&#x201D; but does that lead to improved profits and CSI scores?

0%

In the January 2017 edition of FenderBender, Mike Cortez, collision center director at Gullo Toyota of Conroe, Texas, recalled a story where he learned just how important it is to track CSI scores. From there, it meant choosing from the laundry list of methods one can actually use to collect CSI scores, all of which require varying amounts of effort and dedication from your staff. In the 2017 FenderBender KPI Survey, FenderBender asked surveyed shops whether they used inhouse or third-party services. Here is where each of those parties statistically ended up in terms of profits and CSI scores.

OVERALL GROSS PROFIT MARGIN ABOVE 40%

0%

20%

40%

60%

80%

100%

20%

20%

40%

60%

60%

80%

100%

OVERALL NET PROFIT MARGIN ABOVE 11%

0%

20%

CSI ABOVE 90%

0%

40%

40%

60%

80%

100%

80%

100%

NPS ABOVE 90%

80%

100%

0%

20%

40%

60%

December 2017 | fenderbender.com 25

WEBINARS

Gain strategies. Ask questions. Grow business.

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QUICK FIX

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

THE DETAILS

PACE PAINT FINISHING SYSTEM A New York shop owner reviews a one-step buffing system

BY TESS COLLINS

PACE PAINT FINISHING SYSTEM WEBSITE:

prestaproducts.com USES:

Paint finishing COST:

$160 for the kit

THE REVIEWER:

CLINT FLUEGGE SHOP OWNER

TRAINING:

On-site training available

Clint Fluegge grew up in a body shop. After he got out of the Marine Corps in 1993, he entered the industry as a field adjuster for an insurance company. After that, he ran an MSO before purchasing his shop, Colby Body and Fender Works, in 2012.

COLBY BODY AND FENDER WORKS ALBANY, N.Y.

THE SHOP:

Colby Body and Fender Works in Albany, N.Y., has been family owned and operated since 1974. Fluegge purchased the shop from the founder.

The 7,400-square-foot shop employs 12 and puts an emphasis on customer service. Because of this, Fluegge’s local sales representative, Kurt Zimmermann from Upstate Auto Body Warehouse, is always on the lookout for products that will improve the quality of the vehicles that he returns to customers.

Fluegge says that his shop, like most, was dealing with post-refinish issues. It often took extra work to get everything blended just right.

Zimmerman introduced Fluegge to the Presta’s PACE Paint Finishing System. Because it would cut down on steps and deliver a cleaner finishing job, Fluegge decided to make the investment. He’s used the system for close to six months.

THE REVIEW:

Fluegge says that it’s helped simplify the process and eliminate steps.

Fluegge says that the system has saved him time and materials. The shop uses it on almost every panel job and has seen a 10-minute decrease in the time it takes to finish a job. This extra time can now be used to clean out the interior of a customer’s vehicle, which customers appreciate.

John Weichel, head detailer, mentioned that he doesn’t use the heavy-cut compound or pad because he hasn’t found that there’s a real need for it at Colby’s. Weichel also mentioned that when he did use this step, he noticed that on darker color cars, it looked blended, but then under natural light, there were still some light scratches or haze.

Overall, though, Weichel says that the product has been a time saver and improved the quality of the finish.

THE ROI:

COURTESY COLBY BODY AND FENDER WORKS, PRESTA

HOW IT WORKS:

The PACE system allows users to cut and polish and achieve a swirlfree finish in one step. The system is designed to be used with an orbital polisher. The system comes with two compounds (heavy and medium cut), an optional polish and an optional glaze.

First, decide which of the compounds should be used. The heavycut compound removes severe defects and P1500 sand scratches. The medium cut should be used on dirt nibs or P2500 sand scratches. After that, select the appropriate pad. The gray foam and the purple foam both go with the heavy-cut compound. The gray should be used with softer clears, and the purple, which has wool in it, should be used with harder clears. The orange pad is used with the medium-cut compound.

Once the pad is selected, place the orbital on and apply the compound.

Then begin polishing. As soon as it’s dry, wipe off.

In addition to the system, Fluegge also had to buy an orbital for his shop, so the initial investment was around $500. He estimates that he spends anywhere from $75–$100 per month to replace the pads or compounds. With all of that considered, he says that it paid for itself within the first six weeks.

“With all of that time savings, we were able to get more work in,” Fluegge says.

In addition, Fluegge also says that it’s saved him in material costs.

“This is product we’d have to buy anyways and this system does it all in one step, which cuts a product out,” Fluegge says. “It saves us money on purchasing pads and compounds because we’re able to use them for longer. The water bill is also cut down because you don’t have to wash vehicles as often.”

Fluegge estimates that the system has saved the shop at least $100 per month in material costs.

December 2017 | fenderbender.com 27

MEET THE NEW MAVERICKS Justin Nichols (Nichols Paint & Fab, Watseka, Illinois), Joe Vincent (Vincent Dezigns, Prairieville, Louisiana) and Gary Zaborowski (Boogie Man’s Custom Creations, Riverview, Michigan). Like those that came before them, they’re masters at their craft, but still fine-tuning their skill every day. They’re leaders. Influencers.

Authorities in color and custom. They’re setting trends and breaking them. Mavericks. True artists. Painters. Not applicators… not just slinging paint…not in our business…not using our system.

THINK YOU’VE GOT WHAT IT TAKES TO BE A MAVERICK?

Demo what the Mavericks use. Visit matrixsystem.com

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COLUMNS

THE BIG IDEA KEVIN RAINS

Culture and Character Who you are as a leader gets amplified in your shop’s reputation Joey had a 16-year-old girlfriend

that he met as a customer at his shop.

Joey also had a wife. His girlfriend ended up shooting his wife in the face. And this was just the beginning of Joey’s selfinflicted problems.

Joey Buttafuoco, arguably the most well-known body shop owner of all time, eventually did jail time for statutory rape and later for insurance fraud. So, whatever you do, don’t be like Joey.

Now, if you’re under 40 you may have never heard of Joey, as his star faded as quickly as it ascended, even though he put a lot of effort into keeping himself in the spotlight for as long as possible.

Here’s a short list of facts about his rise to fame.

• • • •

• •

MICHAEL HOEWELER, THINKSTOCK

•

•

He had an affair with a 16-yearold customer he met at his shop named Amy Fisher.

He was convicted of statutory rape and did 4 months in jail.

The woman he had an affair with shot his wife in the face on the porch of their home After that incident, Buttafuoco was indicted on 19 counts of statutory rape, sodomy, and endangering the welfare of a child to which he eventually pled guilty.

After this, the Buttafuocos remained married for a time, moved to California and divorced in 2003.

In 1995, he pled no contest to solicitation of a prostitute.

In 2004, he pled guilty to insurance fraud and did another year in jail plus five years probation. He is no longer allowed to work in the auto body industry in the state of California for the rest of his life.

He became the punchline of many of David Letterman’s jokes in Letterman’s last year of hosting Late Night with David Letterman and was parodied in many Saturday Night Live sketches.

KEVIN RAINS is the owner of CARSTAR Center City in Cincinnati and CARSTAR West Chester in West Chester, Ohio.

He is also an industry consultant and founder of marketing website Body Shop 2.0.

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

December 2017 | fenderbender.com 29

KEVIN RAINS

THE BIG IDEA

If one were to compile a list of all the things that might be done to discredit an industry and bring embarrassment to it, this list is pretty near perfectly suited for that!

And in the current climate both in politics and Hollywood with woman after woman—and some men as well— coming forward accusing politicians and entertainment stars of inappropriate use of their status, wealth or power to gain sexual favor, we are starting to see how much character matters.

I do not want to see our industry’s reputation tarnished by similar stories.

We do not need more Joeys in our industry! What we need are more leaders, managers and owners who have integrity.

Almost everyone I’ve met in this industry is a person I’m honored to be associated with. My hope is that as we continue to highlight the good and teach the next generation that our industry can actually become a shining example of integrity in an increasingly dark world.

A topic that I have absolutely become fascinated with and passionate about is culture making. A shop with a strong culture can grow and remain true to itself and its values without the leader having to always be there to provide guidance on every little decision. A strong shop culture is what can carry a shop’s good reputation far and wide. And culture, for better or worse, is rooted in the character of the shop owner and managers.

In the months ahead, I want to do a series of columns on the benefits of creating a strong culture, share practical ideas on how to improve your shop’s culture and lay out a simple framework for nurturing culture as one of your shop’s core systems. Like estimating or finance or human resources or customer service, each shop has a way of accomplishing those core tasks. And how you build culture affects all of them. Culture can be implemented haphazardly or well. It can be strong or weak, clearly defined or just a set of assumptions in

the manager or owner’s head. But every shop has a culture. My goal is for you to have a good one that is intentionally built and nurtured and able to consistently guide your shop toward health and high performance.

Culture begins at the top. Whether it’s your immediate family or shop, sports team or the PTA, all groups have a way of operating and they will reflect the leader.

If you are a shop manager, leader or owner, then you are responsible for the culture and it will reflect you—the good and the not so good! And keep in mind that your character matters. How you treat others will eventually come to light. More importantly, your organization will increasingly reflect who you are.

If you have ideas, questions or resources to share about building a strong shop culture, please reach out to me at kevin@carstarcares.com. I’d love to have a conversation with you as we dive into this new series of columns on this important topic.

THE TECHNICIAN SHORTAGE W IL L N OT D E FE AT U S

autojobcentral.com

30 fenderbender.com | December 2017

“

The Neutralizer AC is perfect for anybody looking to save time, money and making sure your project looks bitchin’ Dave Kindig Owner, Kindig It Design

YOU CAN’T ELIMINATE DUST FROM YOUR ENVIRONMENT. BUT YOU CAN KEEP IT OUT OF YOUR PAINT JOB. By removing the static charge with The Neutralizer® AC, the dust fibers and unwanted airborne impurities will not stick to your plastic, fiberglass, rubber or other painting surfaces. So, your paint job comes out perfect every time.

• Shorter prep time • Great for all stages of paint • Minimizes reworking, wet sanding and buffing time • Increasing productivity and profitability • Great for cars, RVs, trucks, boats

Contact NRD at 1-800-525-8076 or visit nrdstaticcontrol.com to learn more and find the Jobber nearest you.

TECH 2017

AND

A GLIMPSE AT WHAT TECHNOLOGY AND TOOLS ARE OF UTMOST IMPORTANCE TO THE MODERN SHOP

BY TRAVIS BEAN

32 fenderbender.com | December 2017

One shop utilizes a meticulous teardown discovery and quality control checksheet; another posts OEM guidelines on a whiteboard to keep employees on their toes; others have dedicated diagnostic technicians.

There’s no one uniform way to run a collision repair shop, but these responses from shop operators that took the 2017 FenderBender Tech+Tools Survey signify one key trend: Those keeping up with the tools and technologies reshaping the industry are ready to adapt along with it.

And when flipping through the responses posted by the survey’s almost 150 respondents, the changes between FenderBender’s previous Tech+Tools survey in 2014 and today are evident. The difference in priorities between MSOs, dealerships and independent shops is also clear.

This survey is intended as a snapshot of what could represent a larger trend in shops’ willingness to keep up with rapidly advancing vehicle technology and structure.

In the following pages, FenderBender compares and contrasts the technology and tool trends the survey has observed, and how it could paint a landscape for the industry’s attentiveness to tools and technologies.

TOOLS

D

SURVEY

December 2017 | fenderbender.com 33

THE TYPICAL SHOP Roughly 150 industry professionals completed the Tech+Tools Survey. And, while they were evenly dispersed across all U.S. markets, the majority of respondents followed a distinct demographic pattern that also closely aligns with our overall readership.

TH E AVE R AG E S H O P BUSINESS TYPE

Independent, single-location repair business

64% REGION

Midwest

40% SHOP SIZE

5,000–9,999 square feet

31%

S TA F F S I Z E

37% ANNUAL REVENUE

$1M–$2.49M

29% PE R C E N TAG E O F SA LE S F R O M D R P S

0%

31%

34 fenderbender.com fenderbender.com || December December2017 2017

PREVIOUS SPREAD: TARA WELCH; THIS PAGE: PEXEL.COM

11+

FB TECH AND TOOLS SURVEY

THE TECH+TOOLS BUDGET

A glimpse at how much revenue collision repair shops dedicate to tools and technologies.

0%

2%

I don’t have a specific budget for technology, tools and equipment

LACK OF A PLAN

Compared to the 2014 FenderBender Tech+Tools Survey, the industry’s overall willingness to budget for technology, tools and equipment investments has remained relatively unchanged. Despite the attention and focus that has been given to the importance of staying on top of tech and tool trends, myriad reasons have likely resulted in 29 percent of shops failing to have a specific budget in place for tools.

1–5%

20%

29%

What percentage of your business’s annual revenue do you allot for technology, tools and equipment investments?

21% or more+

6%

16–20%+

10%

6–10%

26% 11–15%

7% WHO IS INVESTING IN TECH+TOOLS?

While it may be no surprise that MSOs and dealerships are more willing to dedicate higher portions of their budgets to technological upgrades, it turns out that collision repair shops are less and less likely to invest more money in tech and tools as their annual revenues trend up.

Under $1M

0–10%

53%

11–20%

16%

$1M–$2.49M

21%+

6%

0–10%

47%

11–20%

19%

$2.5M+

21%+

7%

0–10%

39%

11–20%

18%

21%+

5%

I don’t have a specific budget for technology, tools and equipment

I don’t have a specific budget for technology, tools and equipment

I don’t have a specific budget for technology, tools and equipment

Independents

MSOs

Dealerships

25%

0–10%

49%

11–20%

16%

21%+

5%

I don’t have a specific budget for technology, tools and equipment

30%

28%

0–10%

47%

11–20%

21%

21%+

6%

I don’t have a specific budget for technology, tools and equipment

26%

36%

0–10%

46%

11–20%

15%

21%+

12%

I don’t have a specific budget for technology, tools and equipment

27%

December December2017 2017 || fenderbender.com fenderbender.com 35

THE HORIZON FOR TECH+TOOL INVESTMENTS Breaking down which tools and equipment shops are seeking out in the next 18 months.

TECH+TOOL PRIORITIES

In what is likely a sign of the times, three years ago, when aluminum repairs were being introduced more heavily, shops were more likely to invest in aluminum-specific equipment (42% of shops in 2014) as opposed to 2017 (31% of shops). The same mentality can be applied to shopsâ&#x20AC;&#x2122; intentions to purchase diagnostic tools in 2017 (30% of shops) compared to 2014 (17% of shops).

Hand and power tools

38%

Aluminum-specific tools and equipment

31%

Diagnostic tools and equipment

30%

Parts carts, stands and dollies

27%

Welding equipment

18%

Curtain wall/clean room

17%

Lift equipment

16%

Paint equipment (spray guns, cups, etc.)

15%

Paint booth equipment (lights, stands, heating and drying systems, etc.)

12%

Frame pulling equipment or frame bench

11%

Wheel alignment system

8%

Breathing systems

8%

Estimating system

8%

Air filtration system

7%

Management system

6%

Paint booth

6%

3-D measuring system

Paint vendor

Air compressor

CRM software

Plastic welding equipment

CSI software

OEM repair information system

KPI software

14% 14%

13%

12%

6% 5% 5% 5%

Parts procurement software

3%

36 fenderbender.com fenderbender.com || December December2017 2017

PREVIOUS SPREAD: TARA WELCH; THIS PAGE: PEXEL.COM

Which tools, equipment and services does your business intends to purchase in the next 18 months?

FB TECH AND TOOLS SURVEY

BREAKING DOWN TECH+TOOL INVESTMENTS

Perhaps what is most enlightening about this section of the survey is the breakdown of the specific tools in which businesses of various sizes are investing. According to the survey, a shop pulling in $500,000 in annual revenue has different tech and tool priorities than a shop earning $2.5 million—a similar trend when comparing independents and MSOs and dealerships. While all shops seems to be investing in the same equipment, dealerships (for example) are three times as likely to invest in 3-D measuring systems, while shops earning over $2.5 million in annual revenue are twice as likely to invest in OEM repair information systems.

TOP TOOLS

BY RE VENUE

TOP TOOLS

BY BUSINESS T YPE

Under $1M

Top 5 Investments for Independents

Hand and power tools Aluminum-specific tools and equipment Diagnostic tools and equipment Parts carts, stands and dollies Welding equipment

Hand and power tools Diagnostic tools and equipment Parts carts, stands and dollies Aluminum-specific tools and equipment Welding equipment

$1M–$2.49M

Top 5 Investments for MSOs

Aluminum-specific tools and equipment Hand and power tools Parts carts, stands and dollies Diagnostic tools and equipment Breathing systems

Aluminum-specific tools and equipment Diagnostic tools and equipment Hand and power tools OEM repair information system Curtain wall/clean room

$2.5M+

Top 5 Investments for Dealerships

Diagnostic tools and equipment Parts carts, stands and dollies Hand and power tools Aluminum-specific tools and equipment OEM repair information system

Aluminum-specific tools and equipment Hand and power tools 3-D measuring system Diagnostic tools and equipment Parts carts, stands and dollies

Below, we've separated shops by annual revenue and business type to determine what percentage of each demographic is investing in specific tools and technology.

Hand and Power Tools

Under $1M

45%

$1–$2.49M

32%

$2.5M+

39%

Diagnostic Tools and Equipment

Under $1M

28%

$1–$2.49M

23%

$2.5M+

42%

Diagnostic Tools and Equipment

Independents

29%

24%

$1–$2.49M

23%

27%

Independents

$2.5M+

Independents

21%

$1–$2.49M

16%

15%

OEM Repair Information System

Under $1M

10%

$1–$2.49M

7%

MSOs

42%

Dealers

39%

17%

MSOs

11%

Dealers

27%

OEM Repair Information System

Welding Equipment

Under $1M

31%

Welding Equipment

$2.5M+

39%

Dealers

Aluminum Tools and Equipment

Independents

Parts Carts, Stands and Dollies

Under $1M

MSOs

42%

$2.5M+

21%

7%

MSOs

21%

Dealers

23%

3-D Measuring System

Independents

10%

MSOs

11%

Dealers

31%

December December2017 2017 || fenderbender.com fenderbender.com 37

THE TECH+TOOLS TRENDS FRONT OFFICE

While many shops were just as likely to invest in electronic estimating systems three years ago as they are in 2017, very little appears to remain the same when it comes to the front office of collision repair shops. The average shop that participated in FenderBender’s survey is much more likely to have a streamlined system in place for managing customer service, parts procurement and KPIs overall.

PAINT DEPARTMENT

Although the 2017 FenderBender Tech+Tools Survey expanded the number of questions covering paint departments at shops, when analyzing comparable data between 2014 and 2017, some trends have continued to grow. Particularly, the use of waterborne paint has jumped by over 10 percent, and shops are much more likely to have multiple spray booths in place.

BODY DEPARTMENT

When it comes to body departments, only a few differences stick out between the 2014 and 2017 surveys. While today’s shops are more likely to invest in tech and tools overall, there are some areas where shops have actually regressed since 2014.

38 fenderbender.com fenderbender.com || December December2017 2017

Percentage of Shops Utilizing...

2014

2017

An electronic management system

55%

65%

Parts procurement software

54%

70%

CSI software

37%

50%

KPI tracking software

33%

46%

CRM software

22%

36%

The Typical Shop

2014

2017

Sprays solvent-based paint

47%

37%

Sprays waterborne paint

36%

48%

Has one spray booth

58%

52%

Has two spray booths

30%

39%

Has increased air movement for waterborne systems

54%

63%

Has supplemental fresh air system for painters

64%

67%

Percentage of Shops that Have...

2014

2017

Equipment to rivet and bond body panels

75%

69%

Plastic welding equipment

72%

70%

A squeeze–type resistance spot welder

58%

69%

A 3-D measuring system

55%

64%

PREVIOUS SPREAD: TARA WELCH; THIS PAGE: PEXEL.COM

Stepping back, we can observe how technology at shops has changed in the past three years, from the front office to body to paint.

FB TECH AND TOOLS SURVEY

ADVANCED MATERIALS

As signified by the 42% of shops that were planning on investing in equipment for aluminum repairs in 2014, the immense 25% jump in shops capable of performing aluminum repairs should be no surpriseâ&#x20AC;&#x201D;the same can be said about their ability to handle carbon fiber components. But upon looking deeper at the numbers for each respective year, what perhaps sticks out more is in what specific equipment shops are investing.

AL U M I N U M 2014

2017

31%

have the capability and equipment to repair aluminum components

56%

81%

have a 220v pulse MIG welder specifically for welding aluminum vehicles

85%

30%

have a designated welding fume extraction system

55%

C ARBON FIBER 2014

2017

9%

have the capability and equipment to repair advanced structural composites or carbon fiber components

15%

56%

have a GMA MIG welder with silicon bronze welding capabilities

100 %

28%

46%

have dedicated specialty hand tools

35%

have a specialized aluminum self-piercing rivet (SPR) gun

60%

41 %

have a clean room to isolate carbon fiber repairs

30%

50%

have a clean room that isolates aluminum repairs

50%

33%

have a designated dustextraction system

22%

41 %

42%

26%

have a hot bonder unit

have frame alignment fixtures

30%

23%

have vacuum bagging equipment

23%

73%

have a designated set of hand/specialty tools specifically for aluminum vehicles

87%

10 %

have an electronic digital tap hammer

10 %

2 4%

a wet mix dustextraction system

33%

10 %

have a heat blanket system

10 %

5%

Caul plates for molding carbon fiber

5%

3%

Freezer for prepreg carbon fiber reinforcement material

3%

0%

have a dent-extraction system specifically designed for aluminum that contains an aluminum stud welder, heat gun, pyrometer, aluminum hammers, and dent extraction system

0%

December December2017 2017 || fenderbender.com fenderbender.com 39

SCANNING STATISTICS

As signaled by the numerous stories FenderBender has dedicated to the subject, scanning vehicles has become a huge issue in the industry—much more so than in 2014 when the survey lacked questions about diagnostics. Still, just 48% of respondents said they have a process in place to ensure pre- and post-repair scans are completed when necessary. Roughly 55% say they use a third-party service for scans. Here’s what else FenderBender found:

Always

Never

39%

14% Only when required by OEM repair data

Only on structural repairs

10%

37%

How many OEM scan tools does your business own?

More than one full labor hour

32%

Less than one full labor hour

One full labor hour

45%

23%

Does your business have challenges being reimbursed for diagnostic scans?

3 or more

11%

How much does your shop charge for diagnostic scans?

None

29%

Most often

25%

Never

14%

2

25%

1

35%

Rarely

61%

Enhance Your Tech Knowledge ACCES S THE DETAILS AND INSIGHT FROM THE FENDERBENDER TECH AND TOOLS SURVEY THAT WE COULDN’T FIT INTO THIS ARTICLE.

40 fenderbender.com fenderbender.com || December December2017 2017

FENDERBENDER.COM/TECHREPORT2017

PREVIOUS SPREAD: TARA WELCH; THIS PAGE: PEXEL.COM

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December 2017 | fenderbender.com 43

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S T R AT EGY

IDEA SHOP

First of all, you have to establish some kind of qualitative measure for your bonuses. What I see as a big challenge

A Guide to Giving a Holiday Bonus

THINKSTOCK

Tips on how to effectively plan and budget for your annual holiday bonus giveaway

Being in the industry full time since 1972, Tony Passwater has been through several holiday seasons.

So Passwater, the president of AEII, a coaching and consulting company helping collision repair shop owners worldwide, understands shop owners’ desire to incentivise their employees, especially around the holidays.

But for a lot of shop owners, the desire to give holiday bonuses is more emotionally charged than it is grounded in reason, according to Passwater. A failure to efficiently plan for such bonuses can cause an unorganized system in which no employee expectations are set and your budget goes awry.

While it’s important to make your employees feel valued around the holidays, sufficient planning and goals need to be set in the beginning of the year in order to give those bonuses at the end of the year.

Passwater spoke with FenderBender to give some tips to keep in mind when planning for your next holiday bonus giveaway.

AS TOLD TO NOURA ELMANSSY

is that some shop owners get into the spirit of the season and then they just start deciding they need to give a bonus and there’s never any rationale.

It causes problems because great employees that have been there for a long period of time are not treated any differently from the person who started last week.

You have to establish criteria in which those bonuses are given, such as performance-based criteria. The criteria needs to be expectations that are important to the company and not just focused on how many hours are turned. Discuss what is expected of your employees based on the criteria in the beginning so they know what benchmarks they should be hitting.

Those criteria need to be adjusted depending on the different positions in your shop. Sales team criteria should differ from your tech’s criteria.

I have seen that, in some employee handbooks, the holiday bonus is mentioned. You just need to word it so it’s clear the bonus is based on the company’s performance.

Some mention the holiday bonus while negotiating employment with a new hire. You tell them that this is what we pay, plus the opportunity of a holiday bonus, etc.

December 2017 | fenderbender.com 45

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S T R AT EGY

IDEA SHOP

If you don’t have a process in place that establishes what the bonus is going to be,

then it’s an emotional thing at the end of the year. Let’s say all of a sudden, the week before the bonuses are given out, the owner has a problem with an employee. The owner then takes it out the next week on his bonus, but the employee was there the entire year and doing a good job. They take a small sampling of what they feel like at that moment, versus what the employee contributed throughout the year. Once the criteria is set, you need to be diligent in tracking it with your employees.

One of the biggest mistakes is that shop owners expense the bonus out in the same month that it is being given. In

the beginning of the year, you need to establish how much you are going to set aside for bonuses and accrue that money throughout the year. If it’s a year-end bonus, one-twelfth of it needs to be expensed out every month. That way, it is not as financially hard on the bank account in the month that you plan on withdrawing that money.

Instead of giving the bonus the week before Christmas, give the bonus at the

beginning of the month so that they can go holiday shopping ahead of time.

Also, if you wait until the third week in December to decide to give bonuses, it becomes based on a very small window of what your employees are doing in the moment versus their overall performance throughout the whole year.

I think it’s good to have a combination of both monetary and non-monetary bonuses, like giving time off around

the holidays. For example, if Christmas Eve falls on a weekday, finish up the work the day before so your employees can have that day off. If it falls on a weekend, give them an extra day (either before or after) off.

Otherwise have a holiday gathering of some sort in the beginning of the month where you can give out your bonuses. If you do both, the monetary incentive doesn’t have to be as high of a value. You’ve also got a lot of holidays that you can take advantage of for rewarding employees throughout the year to make them feel like they’re important to the company.

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S T R AT EGY

SALES+MARKETING

The Marketing Books You Need Top marketing experts in collision repair make their book recommendations

From the moment a customer drops off a vehicle to the moment he or she picks

Give ’em the Pickle

it up, it’s all about one thing, Karissa Williams says.

“It’s all about creating an experience,” says Williams, marketing and human resources director for Offutt Collision Repair in Bellevue, Neb. “If they ever have to see us again, they should know that we made this experience as good as it could possibly be.”

From the way she markets her shop to the service her customers experience, Williams is instituting the lessons she learned from Be Our Guest: Perfecting the Art of Customer Service by Ted Kinni. In fact, as a marketing professional, Williams is constantly absorbing books that have shaped the way Offutt markets itself to the public.

Williams, along with three other marketing professionals who have appeared in FenderBender, shared their top picks for books that will help you rethink the way your shop markets itself to the public.

In a market as competitive as collision repair, it’s all about perception. How does the public perceive your business? What separates you from the rest? What are you offering that other shops won’t?

And after a less-than-pleasant trip to a restaurant where he couldn’t get the waiter to bring him an extra pickle for his meal, author Bob Farrell found one simple strategy for making a business stand out: Just … give ’em the pickle.

“If you make the customer upset one time, they never come back, or they’ll tell their friends how horrible it was,” says Meleah Montgomery, who uses the Give ’em the Pickle mentality when working with customers. “Sometimes it’s that one little extra step that makes the difference between a one-time transaction and gaining a fan for life.”

As regional marketing director for Oklahoma-area MSO Collision Works and

48 fenderbender.com | December 2017

by Bob Farrell and Bill Perkins

a past FenderBender Award winner, Montgomery has stressed this mentality among her employees when working with customers. It’s a seemingly miniscule shift that, in turn, created an improved reputation for her shops. Simple little actions that go that extra step have gone on to improve the shop’s word-of-mouth marketing in her eyes.

Take one customer who recently wanted to leave her vehicle at the shop while out of town, which meant she did not have transportation to the airport. Montgomery’s estimator got someone else to cover duties while the estimator drove the woman to the airport, which was “going above and beyond” in the customer’s eyes.

“Sometimes it’s just listening,” Montgomery says. “This person has been in a horrific accident. It’s something we deal with every day, but these customers don’t.

So when they come in, they need someone to listen and give them that little something extra to help get them through it.”

STAFF GRAPHIC

BY TR AVIS BE AN

Influence: The Psychology of Persuasion

by Robert Cialdini

As the founder of Marami Marketing Group, Philipp Lomboy frequently works with collision repair shops on forming marketing campaigns. After a consultation, Lomboy will often send a marketing book as a “thank you” for their time— and that includes Influence: The Psychology of Persuasion.

As a professor of psychology and marketing, the book’s author, Robert Cialdini, lays out five “triggers” you can use to get people to say “yes” to what you ask. Any one business owner marketing his shop’s service should live by at least three of those principles, Lomboy says: RECIPROCIT Y

Reciprocity is when someone gives us something and we feel compelled to give something back in return. In the book, Cialdini uses restaurants as an example.

When you visit a restaurant and are given the bill, there’s a good chance the waiter will have included a mint, a fortune cookie—some kind of “gift.” This, in turn, creates a social pressure to “square up.”

Simply put: If you offer your customers something “extra,” whether it’s a coffee or a free ride somewhere, they’ll feel better about giving you their business.

COMMITMENT AND CONSISTENCY

This is a straightforward principle, yet one that is often overlooked. Consistency is activated by looking for, and asking for, small initial commitments that can be made.

When seeking to influence using the consistency principle, you should put your commitments to the customers in writing and then form a system so that each person on staff adheres to those commitments.

AUTHORIT Y

This principle pushes the idea of selling

your employees as credible, knowledgeable experts. In a case study highlighted

by Cialdini, real estate agents trained their staff members to always mention the agent’s credentials and expertise when speaking with customers. As a result, it led to a 20 percent rise in the number of appointments and a 15 percent increase in the number of signed contracts.

Be Our Guest: Perfecting the Art of Customer Service

your business and how you treat the customer during the repair process.

“I try to study people that walk through our door and change their perception of us,” she says. “People come in and they’re frustrated. It’s on us to calm them down, make them feel at home in the lobby, bring them down a level. We say things like, ‘Your family is OK,’ ‘You can always buy a new car,’ ‘That’s why we have insurance.’”

COMPASS POINT 2:

by Ted Kinni

QUALIT Y STANDARDS

Ted Kinni has traveled all over the country pitching the “Disney experience,” which is all about exceeding expectations rather than simply satisfying them.

During the last 25 years, thousands of business owners and marketing professionals have attended business programs at the Disney Institute and learned how to adapt Kinni’s approach—including Karissa Williams.

“The idea behind the whole Disney experience is to build something so spectacular that they don’t even know what they’re missing,” says Williams, Offutt Collision Repair’s marketing and HR director. “People will say, ‘I have to go.

This has to be part of my family’s life.’”

This is, of course, a tall task for a collision repair shop, which nobody wants to visit. Williams has accepted that as a challenge, however, and decided to implement the Disney model by employing Kinni’s “Quality Service Compass,” which aims to make the Offutt “experience” one that stands above the rest.

This means establishing quality standards that will serve as measures for quality service.

For Williams, this all comes down to branding, and the perception your shop has in the community before a customer even walks into your shop. Williams, as noted in a past FenderBender story, spends a lot of time in the community performing grassroots marketing, building the good name of her shop.

COMPASS POINT 1: GUESTOLOGY

Guestology means identifying the needs, wants, perceptions and emotions of your “guests.” Since collisions are emotional events for customers, Williams says understanding the state in which the customer enters your shop will shape the way you sell

COMPASS POINT 3: DELIVERY SYSTEMS

Disney promotes three types of delivery systems: employees, setting and processes.

For Williams, this starts with her frontline employees who greet the customers as they walk in.

“That’s where the magic happens,” Williams says. “They’re with the customers, getting a coloring book for their children or a treat for their dog. We find these little extra moments to wow people. That’s really powerful. People remember those things.”

COMPASS POINT 4: INTEGR ATION

Integration simply means that the three delivery systems are combined and aligned to create a complete operating system.

“You have to have good leadership and inspire employees and get them to buy in on the mission,” Williams says. “That’s why we dress nicely, spend money on our landscape, and keep our online reputation clean. Everyone is focused on positivity.”

December 2017 | fenderbender.com 49

S T R AT EGY

CASE STUDY

G R O U

50 fenderbender.com | December 2017

Shrinking margins forced Brian Martin to change his shop’s paint and materials process

BY NOURA ELMANSSY PHOTOGRAPHY BY DAY L I N H O R R U I T I N E R

At Brian Martin’s two high-volume shops, everything counts—especially when it comes to paint and materials.

N D

As director of auto collision for Lexus of Pembroke Pines and Lexus of North Miami (Florida), he sees about 500 cars per month across both body shops. But with such high volumes, he noticed that his paint and materials (P&M) profits could be tracked a little better.

And with a push from insurance companies to reduce paint times on estimates, he knew he needed a better system to combat falling victim to not being compensated appropriately for his shops’ work.

After some critical tracking and standing his ground with insurers, Martin excelled in the P&M department. Here’s how he did it.

December 2017 | fenderbender.com 51

S T R AT EGY

CASE STUDY

Meticulous Approach Increasing paint and materials profits required effort from the entire shop, beginning with Brian Martin and ending with the painters.

The Backstory Martin has been with Craig Zinn Automotive Group for 11 years. He designed, engineered and built the body shop for Lexus of North Miami.

But despite the major strides the shops have made, there was once a time when Martin noticed that his P&M profits could be improved, as his operation consistently sat in the low-to-mid-40 percent range.

His company brought in Mike Anderson, president of Collision Advice, and joined his Axalta business council to identify ways to increase those profits.

The Problem “There were a lot of initial obstacles,” Martin says about beginning the journey to increased P&M profits. And it all started with dealing with the DRPs. According to Martin, South Florida has some of the lowest labor rates in the country and low allotments for P&M work, which he realized when he started going to 20 Groups and learning about other shops.

And when insurance companies decided to reduce the paint times on repair panels, he says it was a huge eye opener and a huge 52 fenderbender.com | December 2017

profit decline. After being told time and time again by insurance companies to either comply or lose the DRP, Martin eventually opted to eliminate the partnership. “[After losing the DRP], we lost some volume, but in the end we certainly made that up in profit,” he says. “We really have to focus on what we’re collecting from the insurance company as far as paint and material sales per repair order.”

Once he addressed the concerns with the insurance companies, he began reviewing his internal operations and realized there were a number of issues: Balancing the paint increase: Martin says that there is a constant yearly increase in paint costs. The manufacturers triple, if not, quadruple the pace of additional income for paint and materials allotted by the insurance company, so it’s essential that they balance the costs.

Reduction in paint times: He wasn’t fighting against the reduction of paint times on estimates.

Maximizing estimates: Shop employees weren’t sure if they were charging appropriately for all the simple things, like a two-color setup or blending.

Measuring: Previously, the shop did

not effectively measure each painter’s usage or identify overpouring problems.

The Solution First, the shops made it a standing practice that they were never going to allow paint reductions unless it can be proven otherwise by an insurance company, Martin says.

Because manufacturers provide paint times to estimating softwares such as CCC, insurance companies will manually reduce the times with an argument such as, for example, since only a portion of a panel is being painted, the entire time allotted is not needed, according to Martin. This reduces labor revenue and the allotment for paint and materials based on paint labor time.

“We, under no circumstance, allow for a paint cap,” he says.

He says that a lot of the time, they have to educate insurance companies as to why the processes don’t change when repairing a panel and why the reduction in times don’t work. And when he asks them why they chose the amount they did, he says “99 percent of the time,” they can’t substantiate the answer.

LEXUS OF NORTH MIAMI

LEXUS OF PEMBROKE PINES

LOCATION:

LOCATION:

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STAFF:

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AVERAGE MONTHLY CAR COUNT:

ANNUAL REVENUE:

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275

$12 MILLION

EXPERT ADVICE BRENT BEAULIEU, NATIONAL ACCOUNT MANAGER FOR A X ALTA COATING SYSTEMS, HAS HELPED MANY OF HIS CLIENTS TIME AND TIME AGAIN WITH THEIR P&M PROFITS. HAVING BEEN IN THE INDUSTRY FOR OVER 20 YEARS, WORKING IN BODY SHOPS AND EVENTUALLY TRANSITIONING INTO HIS CURRENT ROLE, BEAULIEU OFFERS SOME TIPS FOR ACHIEVING AND MAINTAINING HIGH P&M PROFITS. TIPS TO ACHIEVE AND MAINTAIN IMPROVED PROFITS

1. Consistency. Continue to monitor and operate your processes in place.

2. Standardize materials See “Tips for Easy Implementation.”

“When we pushed back and held our line, they came back,” he says.

Next, Martin evaluated the estimates. He realized that the biggest and easiest way to increase P&M profitability was through the selling and estimating process.

Since flex additive isn’t included in the Axalta paint line and there is a high volume of cars that require the additive on bumper work, Martin concluded he needed to charge for it.

“We really have to make sure that if we’re doing it, we’re getting paid for it,” he says. “With one of our DRPs, we’ve been advised that we’re the only ones in the state of Florida that charges for flex additive.”

If for any reason the shops have a low P&M profit month, Martin says that his team prints a detailed list of all the repairs orders for the month and calculates what went wrong by asking the following questions: • Did we have any paint caps?

• Did we have a low paint and material per estimate?

• Was it a certain estimator?

• Was it an estimator that wasn’t

3. Limit your suppliers. Limit your suppliers to preferably one. Most shops search for the best deal, so they buy from multiple distributors. This makes it tough to keep up and you suddenly become blinded by the “best deal.”

trained properly?

• Did we have re-dos from a certain paint technician?

• Did we have any waste?

• Has our hazardous waste removal gone up?

In addition to the shop’s management system, he began tracking the each paint technician’s usage per hour through Axalta’s paint scale.

“One of the things that made a big difference to us was measuring all of the products across the scale,” he says.

Every painter has to enter their repair order on the mixing scale and mix across the scale. This way, he can assess if it’s the same tech that consistently has low profits, if more education is needed, etc.

The shop also uses Nuventory, which is a software that allows Martin to calculate the cost per hour per tech for dry goods.

“It’s more to let us know what we’re using and what we’re ordering and that’s something that has been extremely cost efficient for us,” he says. “In fact, it lowered our dry goods by half.”

4. Check in. Check on your suppliers’ pricing every six months to ensure consistency.

The Aftermath Now, the shop is consistently in the 55– 65 percent range for P&M profits across both shops, a more than 10 percent jump from his profit margins in 2012.

Martin says that because the estimates are being done correctly and reflect the proper paint times, it has helped tremendously with the technicians’ morale, This led to improved efficiency. All techs across both locations are above 150 percent efficiency, a 15–20 percent jump from where the techs were before the P&M changes in 2012.

The Takeaway From this experience, Martin has realized his top five tips for any shop looking to increase P&M profits: 1. Focus on each and every estimate.

2. Focus on not accepting a paint cap.

3. Focus on not having reduced paint times or blend within panels, even if it is with a DRP. 4. Understand what it takes to fix the cars back to manufacturers’ standards.

5. Join the 20 Group of your paint manufacturer.

December 2017 | fenderbender.com 53

S T R AT EGY

TECH+TOOLS

High-Performing Technology for Today’s Technician Three shop owners share their must-have equipment for today’s ever-changing collision industry

BY NOURA ELMANSSY

THE TOOL: GYSPOT INVERTER THE SHOP: OKA’S AUTO BODY, WAIPAHU, HAWAII, ANNUAL REVENUE OF $4.5 MILLION WEBSITE: GYS-WELDING.COM

54 fenderbender.com | December 2017

For Kyle Okahara, part owner of Oka’s Auto Body and Carl Vincenti, director of business development, their process for choosing what type of technology to bring into the shop is quite extensive.

Always keeping up with industry trends, Vincenti says that once they get word of something that piques their interest, they immediately get their techs together and start the process of getting buy in. To aid in the process, before purchasing anything, they ask the manufacturer to bring it in and show the team members and get feedback.

That was the process when the shop decided to invest in the GYSPOT Inverter (a resistance-spot welder). He says the biggest advantage is that the welder can automatically sense what type of steel it is welding, whereas with other welders, extensive adjustment of the settings must be done before the job. The smart welders just require a quick recalibration. According to Okahara, smart welding is relatively new, which gave him interest.

In addition to sensing the type of steel, it can identify the thickness of what it is welding. Okahara says that some steels can’t be cut through, so the welder will establish that early on. He also says that the welder is rated higher as far as amperage, which is beneficial since it’s a requirement for many OEMs. The only downside to that was that Okahara had to reconfigure the shop to accommodate the amperage. The reconfiguration included upgrading the electrical current, adding more electrical lines, updating the junction box and installing five different electrical drops throughout the shop for the welder, since it can’t be plugged ito a wall, but instead needs a special socket.

Okahara’s shop began using the welder in February 2017, but he soon found

that his $32,000 investment (not including the amperage accommodation) was worth it. He says that the welder can save at least 30 minutes on a sizeable panel for a replacement-type job. He expects to get a full ROI sometime in the next year.

While the techs love the tool now, Okahara says that they did have a harder time transitioning at first because the tool requires some attention to cleaning and the panel set-up.

The techs have to be careful with cleaning because the tool measures the distance between the sheets of steel and if there is anything in between the sheets, like debris, it could be a problem. Once the techs got used to the tool being “finicky” at times, the tool became very easy to use.

The welder also aids in the shop’s team concept with its techs, allowing them to handle more work, increase production and throughput.

THE TOOL: MITCHELL DIAGNOSTICS THE SHOP: 1STCERTIFIED COLLISION CENTER, SEVEN LOCATIONS THROUGHOUT SOUTHERN CALIFORNIA, $28 MILLION COMBINED REVENUE WEBSITE: MITCHELL.COM

GYS, MITCHELL

projected to be worth $196 billion by 2020, according to Radian Insights, it means that there is plenty of work to go around.

As the technology in cars becomes more and more prevalent, shops needs to have the capacity to repair properly and efficiently. With the plethora of tools available on the market, making those buying decisions can be difficult—and costly. These three shop owners and operators, which make up $36.5 million of combined revenue between their shops, offer their must-have technologies for their technicians.

With the collision repair market

PRO SPOT

As the beta shop for Bosch scan tools, it was a natural first step for 1stCertified Collision Center to begin trying Mitchell Diagnostics, soon after it launched.

As the first scan tool designed for the collision repair industry, Mitchell Diagnostics has partnered with Bosch to help many shops strengthen their claims process, including 1stCertified Collision Center.

Ron Villard, vice president of operations, says that the tool has not only saved time, but also improved the shops’ already efficient estimating process.

Once the vehicle is dropped off, it undergoes a teardown for damage analysis, then the tool is plugged in and the car is turned on. The tool will read all of the fault codes in the car, collision related or not.

It provides the benefit of identifying unrelated prior damage before the accident, which Villard says is helpful because then they can notify the insurer.

Villard says that it also has helped the shop with better communication and documentation overall.

“None of the other tools have that type of communication. We’re able to actually download the information into the system and electronically send it to our service advisors so that they can have documentation to repair the vehicle.

That’s the big upside to this,” he says.

This has helped Villard with insurer relationships. He says for every insurer that he has had to bring the Mitchell documentation to, he hasn’t had one insurer say that they weren’t going to take care of the repair.

“It created a better relationship for us with the insurers and the customers,” he says.

Since the scanning tool is so thorough, it helps the shop in scheduling the proper type of repair for each and every vehicle

which is crucial today with all the new technology available in cars, Villard says.

For example, if there’s a bumper that needs to be taken off of a car, sometimes it will have a camera mounted in the front of it that needs to be recalibrated.

The system will tell him that.

The tool has helped improve cycle time since a more accurate estimate is written up front. It was a huge time saver in that it increased Villard’s hours per day to one hour per day per car.

The shops pay a single monthly fee that includes the tool, the Bosch vehicle database and the Mitchell diagnostic workflow system. There is no per-use fee.

According to Mitchell, the MD-350 is $1,495 plus a $339 per month fee.

The MD-200 is $995 plus a $249 per month fee.

THE TOOL: PRO SPOT I4 INVERTER RESISTANCE SPOT WELDER THE SHOP: SUPERIOR SERVICE CENTER, EAGAN AND APPLE VALLEY, MINN., $4 MILLION OF COLLISION ONLY REVENUE THE WEBSITE: PROSPOT.COM

While this isn’t a new piece of technology, it’s a classic for Dan Sjolseth, owner of Superior Service Center and his general manager, Tony Hoffman.

“Probably the biggest piece of equipment that changed us as a shop because that was the gateway for all the new stuff to follow,” Hoffman says.

The game changer was the Pro Spot i4 Inverter Resistance Spot Welder.

Having been in Sjolseth’s shop for eight years now, the $20,000 investment was the first to come to mind when asked about a must-have for today’s techs.

Sjolseth’s sales rep for the welder says that the ROI is about $1 per weld. Assuming a successful shop does 20,000 welds per year, you would recoup the cost in just over a year, which was the case for Sjolseth.

While the welder will only save about 5–10 percent of time on a normal job, its benefit comes from the quality of the weld. Hoffman and Sjolseth say that the welds are consistent, not only in quality and functionality, but also in appearance. There is no need to clean up or grind any of the welds because they are done right the first time.

“Pro Spot is one of the few ways to get a weld that totally resembles the OEM appearance,” Hoffman says.

Once the prep for the weld job is finished with, which is the most time consuming part of the process, the actual welding is fast and easy. Its ability to duplicate an exact weld is not only beneficial for the shop’s performance, but also in keeping up with the certification requirements.

December 2017 | fenderbender.com 55

COLUMNS

ON THE BUSINESS MIKE ANDERSON

Goals vs. Wishes

How to create a true action plan to drive change

56 fenderbender.com | December 2017

There’s a difference between setting goals and making wishes. It seems obvious just typing that last phrase, but let’s spell this out a bit: A wish is when you just say it and try to speak it into existence. I want to improve my X. You tell your team you want to improve it, you get everyone fired up, and then … you just sit

back and hope it happens.

That’s not realistic, though, right?

How often does that work out for you?

If you truly want to improve performance in any area—whether in your business or your personal life—you need to set goals. To do that, you need to create a very specific action plan.

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

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

MICHAEL HOEWELER, THINKSTOCK

It’s nearly the end of the year, a great time for all of us all to take a step back, reflect, chart a new course, and get ready to make great strides in 2018.

Maybe your hope is to pick up an OEM certification for your shop, or to increase your brand awareness in your market. Maybe you want to reorganize your shop floor, adopt additional lean practices, overhaul your estimating—the possibilities are fairly endless.

We all strive to improve each year (and if you don’t; why are you still in business?), but here comes the big question: How do we do it? Let me rephrase that, my friends: How do we take that hope— that endpoint we want to get to—and work toward it?

Well, it’s actually simpler than you might think; just set a goal—a real, tangible, actionable goal that can lead to real change.

Sounds simple, right? But I’ll tell you the vast majority of people I walk through this with aren’t setting actual goals; they’re listing out wishes.

I have a goal-setting sheet that I work on with all my clients, and you can find it attached to this column online at fenderbender.com/andersongoalsetting. But I’ll give you the rundown of how it works, and why you’d do well to follow it.

The sheet is made up of seven basic questions:

W H AT I S Y O U R G O A L?

This seems simple enough, but it needs to be as detailed as possible. As I mentioned earlier, true goals are tangible and actionable items. For instance, instead of saying you want to “improve workflow,” you might say that you want to “reduce cycle time by 1.5 days” or “increase touch time by 2 hours per day” for 2018. See how those would accomplish the same as the first but can actually be tracked and measured, and provide a true benchmark for your team? Keep your goals very clear, both for yourself and for anyone else who may be involved in the changes needed to achieve them.

W H Y IS T HIS Y O U R G O A L?

For some this would seem very obvious, but in the end, it’s a necessary step to evaluate and understand that goal you want to achieve—and for your team to get onboard. Let’s say your goal was to implement a process where you perform a diagnostic scan on every vehicle that comes into your shop. Well, why would you do this?

It’s about safety, and doing “the right thing” by the customer; they trust you

to be the expert and do your due diligence. It would also limit your risk of liability. Clearly, that’s one example of a goal, but you get the idea as to answering the “why.”

improvement. If your goal is to meet with your managers, one-on-one every month or week, that’s ongoing, right?

Keep that in mind.

HO W W IL L Y OU A C C OMP L I S H T HIS GO A L?

Some goals that require training might mean travel, or staying late after hours. Others might require offsite meetings, or take up space in the shop already allotted for something else. Plot it out.

Here’s where you create your actionable steps for change. With the scanning example, the first step might be training your techs to perform the scans— maybe taking specific I-CAR classes.

Maybe the next step is purchasing the needed devices, or partnering with a third-party system. Plot out exactly what steps you need to take to get from your current state to that end goal, and put it in writing.

W HO W IL L P ERF ORM T HE TA S K(S) T O A C C OMP L I S H T HI S GO A L?

Write it out—list the names and exactly what responsibilities they have in this process. And think about these smaller questions: How will you inform everyone of their to-do list? When will you inform them? How long will they need to prepare?

W HEN W IL L I T BE S TA R T ED ?

Create a timeline that’s realistic, but also pushes yourself or your team. And ask, How long should it take? When it’s a larger goal or requires a lot of legwork in the leadup time, you need to give your team plenty of warning if they’re involved. Also ask, Will it be completed? Some goals are ongoing, particularly those centered on leadership or self-

W HERE W IL L Y OU DO T HE S E TA S K S ?

W H AT W IL L T HE F IN A NCI A L IMPA C T BE IF Y OU A C C OMP L I S H T HIS GO A L?

Let’s put this a different way, What will the result be if you achieve your goal? You should have this in mind from the beginning, not just in terms of the benchmark or target to hit, but also in terms of the overall impact.

Each change and improvement in your business will have a larger effect on the operation overall, and you need to find that tangible result when mapping out your plan.

A lot of this might seem redundant or obvious, but trust me, my friends, not many out there approach it this way. Too many of us sit back and wish for things to get better. It isn’t going to happen that way. You have to create change, and you need to take a very focused approach to do that. Please, take the time to do this. Plot out how you will change, grow and improve in 2018.

Make it your best year yet.

December 2017 | fenderbender.com 57

WITH 16 YEARS OF EXPERIENCE WORKING IN A VARIETY OF SHOPS AND POSITIONS, CLAY HOBERECHT KNEW EX ACTLY HOW HE WANTED TO RUN HIS OWN SHOP

58 fenderbender.com | December 2017

S H O P TA L K

CLAY HOBERECHT

“THERE’S NO REASON YOU CAN’T ENJOY YOUR WORK.” PHOTOGR APHY BY AVION PHOTOGR APHY

December 2017 | fenderbender.com 59

S H O P TA L K

CLAY HOBERECHT

C

lay Hoberecht’s road to owning his own shop has been anything but easy.

With each step came a new obstacle, but through passion and determination, Hoberecht went from someone who was “unhirable” to owning his own shop that’s grown its annual revenue from $70,000 to $1 million in the short span of three years.

Hoberecht’s background is different than most. He didn’t grow up in the industry and hasn’t always seen himself ending up there. When the time came to decide what to do with the rest of his life, Hoberecht decided to go after something that had always fascinated him: fixing cars.

After being turned away by what felt like every shop in Wichita, Kan., Hoberecht finally caught a break when he decided to start offering his work for free—while working at Walmart and practicing on his own vehicle on the side. Over the next 16 years, he had stints at a number of different shops and worked out of his home garage before he decided to officially open his own business, Best Body Shop, in 2014.

The building that Hoberecht found had no bathroom (actually, it had no running water at all) and four parking stalls. By providing quality repairs, Hoberecht was able to expand and purchase an accompanying property. Since opening three years ago, the shop has done some sort of expansion every eight months.

With a shop to call his own, Hoberecht was able to do the things he had always wanted to do in a shop, including building a team-based culture.

Solidifying Workflow Solid communication among the team has been essential to maintaining organization throughout the repair process.

AS TOLD TO TESS COLLINS

The way my day is scheduled has changed.

I recently attended a 3M event in Detroit and when I came back, I realized that the staff knew how to operate without me there. I found out one of my guys really stepped up, so I’ve started grooming him into a manager and showing him what it takes to lead a team. That’s freed up time for me to do follow-up calls, interviews and social media.

Every morning, we have a one-hour team meeting that starts at 8. What we discuss

is mostly personal issues. I think one of the biggest problems in our society is that people have accepted the fact that they’re not satisfied with their work.

People are always saying, “I can’t wait until 5.” Why? What happens at 5?

There’s no reason you can’t enjoy your 60 fenderbender.com | December 2017

work. That’s why I’m always checking in with my employees. Each day, I have them each write out three goals. It could be, “What are your professional goals for six months from now?” or, “What are your personal goals for the rest of the month?” Recently, I even had them make goals for each other.

Another way I check in with the team is to take each one of them out to a oneon-one lunch once per month. I focus on how they’re doing in their personal lives and I give them feedback professionally.

Clarity is huge for me and getting out of the shop is a great way for me to let them know what’s going on. You have no idea what’s actually going on with your team unless you spend time with them.

Something that really pisses me off is

owners that say, “Leave your problems at the door.” What that says to me is that you want your employees to lie. Those personal problems will impact the way a door is repaired. I don’t want successful body people, I want successful people. If one of my employee’s wives was having surgery and he was at work just to prove he was a good employee, I wouldn’t be happy with that choice. for the entire crew and we all eat it together.

On Monday, everyone chips in $20 and she goes shopping for ingredients and snacks to keep in the office. The guys look forward to lunch. We have a group text conversation between the employees and when Barb announces that lunch is ready, it becomes GIF central.

Every day, my wife, Barb, makes lunch

BEST BODY SHOP LOCATION:

WICHITA, KAN. SIZE:

6,000 SQUARE FEET STAFF:

8

AVERAGE MONTHLY CAR COUNT:

45

ANNUAL REVENUE:

$1 MILLION PROJECTED FOR 2017

The way I assign duties and distribute raises in my shop is not traditional. I

actually assign a numerical value to each of my employees. This system came out of necessity because, in the beginning, I felt like I was doing everything. Before I started my own shop, one thing I never understood or liked was the flag system. It seemed to me like this created a line between body and paint. When a job is flagged, everyone is trying to get the vehicle out of their stall as quickly as possible. I wanted to create a profitsharing system where everyone was focused on the same thing: a car, ready to go, looking flawless and the shop making a profit.

I broke down all of the tasks involved in a repair. Then, in ascending order of

better. I discipline myself to spend 8–10 hours as the CEO and then I get to play with the cars.

Before the shop opened, my wife and I had a long discussion about what it would mean when the shop opened. I don’t believe in a work-life balance. What I mean by that is I don’t think the two have to be separate. Why can’t you bring your daughter into work? My daughter is three years old, and I’ll bring her in, and even if things are crazy, I’ll walk to the nearby gas station to get an ice cream with her.

Since my wife works at the shop, we get to have fun together during the day and we set date nights. We make time for each other. There’s no reason you can’t integrate work and personal life.

a customer commented on what a great job we did on a repair of his. We got to talking a little bit on my vision for my business and he told me he was going to send me a book. He sent me The Five Dysfunctions of a Team. That book was a game changer for me. It showed me how to operate as a team and build a layer of trust.

difficulty, I grouped three tasks together and assigned it a value. Once a staff member has mastered those three skills and can demonstrate them to me, they move up a level. There’s no time frame, and if they can do it, then they’re good.

With each level they move up, they get a $1 raise. If someone comes to me and says they need a raise, I point to the board with all of the tasks that we have displayed in the shop. It’s all about transparency.

After just opening my shop,

I mentioned that my typical daily schedule has changed. I’ve now broken my day

of entrepreneurs: They read a crazy amount and they don’t smoke. Right then, I started reading more and quit smoking cold turkey.

I buy Audible audiobooks for everyone on my team and we go through a book per month and meet about it. It’s so important for me that my team understands my thought process and it’s not just, “Do this and this and this,” and the team has no idea why. I’m all about transparency.

down into five main tasks: sales, finances, shop development, team development and estimating. I spend two hours on each. Then, I help out with whatever else is needed in the shop. Honestly, I would say I work between 16–18 hours per day.

This is by choice. I enjoy the extra time I spend at the shop finding ways to make it

After reading this book, I began doing research. I found two distinguishing factors

LEARN MORE ABOUT HOW HOBERECHT'S SYSTEM WORKS:

HOW MEDIA HAS INFLUENCED HOBERECHT'S CAREER

Hoberecht has created a list of 34 skills that someone at his shop needs to become the ultimate body technician (see above image).

Upon being hired, Hoberecht asks the new employee to look at his list of levels and select the one that they think best matches their skill set before Hoberecht assesses them himself. If someone needs to be moved up or down, he lets them know and makes the adjustment.

The system starts with gatekeeper and moves up to level 10. Gatekeeper is the entry-level position and is where someone with no experience would start. In order to advance on levels 1–6, 200 percent efficiency in three skills on the list is required. For levels 7 and up, four skills are required. Each time a new level is achieved, the employee moves up a pay grade.

Clay Hoberecht's Picks

1. The Five Dysfunctions of a Team by Patrick Lencioni

2. The 10X Rule by Grant Cardone

3. EntreLeadership: 20 Years of Practical Business Wisdom from the Trenches

by Dave Ramsey

December 2017 | fenderbender.com 61

U P DAT E

CARSTAR BERLIN

THREE TIPS FOR FINDING AND GROOMING EMPLOYEES

T H E T E C H N I C I A N S H O R TA G E C O U L D B E S O LV E D B Y F I N D I N G Q U A L I T Y C A N D I D AT E S I N U N E X P E C T E D P L A C E S

Lisa Siembab, director of business strategies at CARSTAR Berlin in Berlin, Conn., is on a mission to solve the technician shortage. When FenderBender last spoke with Siembab (fenderbender. com/siembab), executive director of the Automotive Service Association (ASA) of Connecticut, she was focused on bringing more people into the industry, specifically two groups that are often overlooked: millennials and English as a second language speakers. The previous article touched on Siembab’s hire of an employee that spoke almost zero English—Nelson, who is still at the shop and continues to impress her each day with his dedication and positive attitude.

Fast forward two years and Siembab is still hard at work trying to solve one of the biggest headaches in the industry—finding qualified technicians.

On a larger level, she’s working with high schools and colleges in the area

through ASA to match shops and qualified candidates. Beyond that, she’s done work with the National Auto Body Council to establish an in-language initiative, which has created a glossary of common industry terms translated into Spanish. At her own shop, Siembab has staffed up by taking a chance on those who may otherwise have been overlooked. That doesn’t mean she’ll hire just anyone, though. Siembab is very selective of who she picks to work at her shop, though she doesn’t let things like age or language deter her.

“I look for passion and a hunger for learning,” Siembab says.

Hiring someone who is unfamiliar with the primary language spoken at the shop or someone who’s never been in a shop before has its obstacles, but Siembab has learned lessons along the way that have helped her develop quality employees.

FIND THE RIGHT MENTOR.

CLEARLY OUTLINE EXPECTATIONS.

Siembab hired a recent high school graduate that, on paper, wasn’t an easy sell.

“It didn’t sound that promising when I got the call,” Siembab says. “He’d been out of high school for two years. It didn’t sound great but I’m always willing to sit down with someone.”

When the candidate came in, Siembab was impressed with his enthusiasm.

“I knew I could develop him because he had the right personality,” Siembab says.

Siembab hired him on and he now works in the disassembly department. She knew it would take time for him to develop his skills and that patience was key.

So, she paired him with someone she had identified at the shop as being a good mentor and she knew wouldn’t let him fail.

62 fenderbender.com | December 2017

“I watch my tech’s labor efficiency and I was looking at a report and I saw one of them had said he was prepping a car for three hours,” Siembab says. “I thought to myself, ‘There’s no way it took him that long.’ I went out and asked him and he said, ‘No, no, 30 minutes.’ It turns out, the shop that he came from didn’t track that. I just assumed that he knew what labor efficiency was.”

Siembab says that it’s up to the shop to make it clear what’s expected of its employees. It’s also important to understand that they might come from a different background and it may take them some getting used to.

“Nelson isn’t used to the way many

Pushing the Industry Forward Lisa Siembab has made a concerted effort to find solutions to the industry’s well-known technician shortage.

U.S. collision repair shops work and doesn’t have a lot of experience working in a team structure,” Siembab says. “After one of our recent meetings about a new setup we were doing, I checked in with him and he just said, ‘I’ll try.’ That meant the world to me. He may not always be comfortable or agree, but he always tries.”

ALWAYS BE ON THE LOOKOUT.

Siembab says she’s always recruiting, even if she doesn’t have a current opening.

She advises owners to always be open— whether or not there’s an immediate need.

“I’ll always sit down with someone,” Siembab says. “You never know what someone will bring to the table.”

JEFFREY YARDIS

BY TESS COLLINS

COLUMNS

IN THE TRENCHES STEVE MORRIS

Ensuring Repair Success

NICK SPAETH

An effective repair begins with an effective blueprinting process There are 42 million reasons to make significant changes to your business model and to your mindset when it comes to the choices you make in your repair methodology. Most readers of FenderBender are keenly aware of the recent jury verdict that awarded $42 million in a case where faulty repairs were performed by a body shop that did not follow OEM procedures. Mark Allen, the collision programs director for Audi, recently coined the phrase “42 million reasons” during a VeriFacts Guild 21 call.

So, what do we as collision shop operators need to do to insulate ourselves from the financial liability of improper repairs? I believe that if you implement the following strategies into your SOPs, you have a pretty solid chance of being on firm ground in the event that your repair methods are called into question.

You need to implement a blueprint/ repair planning process in your shop.

There are many versions of blueprinting that exist in some shops today and there is not a one-size-fits-all process that you can plug and play in your shop.

Once you’ve decided on the outline for your blueprint process, you’ll need to insert some non-negotiable steps into your system that will alleviate a ton of friction, prevent failures of your process and virtually guarantee the proper repair is done to each vehicle. The first non negotiable is to create and implement what I call a client questionnaire. Most of you probably have a questionnaire that asks for pertinent details about the customer, the vehicle and perhaps asks about who referred the customer. I suggest you dig deeper and ask things like, “How did the accident happen?”, “How many people were in the vehicle and how many seat belts were in use?”, “Do you notice anything different about the way the vehicle drives or sounds,” etc. You can compile a list of questions like these to help guide you in your blueprinting process.

The next non-negotiable is to have a process for doing an electronic scan of

the vehicle before starting a teardown of the damaged area. There are many different schools of thought on how best to accomplish a pre-repair scan and it seems like scanning has been the hot topic for the last year. Options include training your techs to do the scans inhouse or connect the vehicle to a device that communicates with a remote facility that has the diagnostic tools and technicians that can interpret the current status of all vehicle systems. I’m seeing a couple of new companies entering the market to provide this service in addition to legacy companies, such as asTech. Another option is to use a mobile sublet vendor that comes to your shop to do the scans. Your friendly neighborhood dealership can do the scans for you. This truly is a non-negotiable so you must perform this part of the blueprint process on every repair. In a future column, I’ll discuss the steps and strategies we’ve used to actually get paid for this process.

One other crucial and non-negotiable process to implement involves the gathering of OEM repair procedures, specifications and bulletins for the vehicle you are blueprinting. You will need to assign responsibility for gathering and distributing this information to your blueprinter and the acquisition of this info must occur prior to beginning the repair. For example, your blueprinter looks at a vehicle

prior to teardown and writes a preliminary estimate that includes a quarter panel replacement. The blueprinter’s next move is to access, print, and read the replacement procedures in order to understand the cut locations, attachment methods (MAG welds, MIG brazing, STR welds, riveting, gluing, clinching, etc.) and additional materials and parts that may be needed for the installation of the panel.

The best source of OEM information comes directly from the OEM technical information websites. Many of the sites are available on a subscription or pay-as-you-go basis but there are several OEMs that publish the information at no charge. Use OEM1stop.com as a launching point for getting access to individual OEM websites. Some shops use an OEM information aggregator such as ALLDATA or the systems from CCC and Mitchell. Each shop must make a business decision as to which resource is used for retrieving OEM repair information but, in the end, this is truly one of the most critical non-negotiable processes you will need to incorporate.

In an upcoming column I’ll discuss a few more non-negotiables you’ll need to add to your blueprint processes and, as promised, I’ll let you know how to get paid for your efforts. For now, remember that you have 42 million reasons to get going on this now.

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

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

December 2017 | fenderbender.com 63

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I N N OVAT I O N S

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ADDING CATWALKS

A DDING CAT WA LKS T O FREE UP YOUR SHOP FL OOR

O R G A N IZE YO U R S H O P F L O O R S PA C E B Y H AV I N G C AT W A L K S S E R V E A S E X TR A S TO R AG E A R E A S

BY K AT H L E E N S A PI E N

PEOTTER’S AUTO BODY LOCATION

SUMMIT, N.J. INNOVATOR

TIMOTHY AND LARRY PEOTTER SHOP SIZE:

9,000 SQUARE FEET STAFF SIZE:

20

Moving Up Catwalks throughout the shop have helped maximize space at Peotter’s Auto Body’s small facility.

AVERAGE MONTHLY CAR COUNT:

100

ANNUAL REVENUE:

$3.8 MILLION

What It Is —

Elevated platforms that serve as storage spaces for parts, tools and surplus shop supplies.

COURTESY PEOT TER'S AUTO BODY

The Inspiration —

Timothy Peotter, the founder of Peotter’s Auto Body in Summit, N.J., first came up with the idea of adding catwalks to free up the shop floor and keep it clean.

He added the first three catwalks in 2010. He passed away a few years back, but his wife, Joanne, and their son and daughter, Larry and Renee, took over the business.

Staying true to their dad’s mission, the Peotters decided to add two more catwalks in 2016.

The catwalks help the shop have more space to take on bigger repair jobs, according to Peotter.

“If I didn’t have them, it would take up take up the space of one or two working bays,” Peotter says.

How It’s Made —

Peotter worked with a steelworker, who helped put the facility together and set the first few catwalks up. He pre-built and welded it together, based on Peotter’s specifications. It took him 2–3 weeks to build it. He then bolted the catwalk on beams.

The newer catwalks that Peotter added are 20 feet by 20 feet and 38 feet by 6 feet.

There is a moveable ladder that they use to access the catwalks. Usually a parts team member or sometimes a shop helper will be the one going up and onto the catwalk and then hand parts down to techs. Only one person is allowed on the catwalk at a time. Peotter noted that there is a platform to help his parts team members get on the ladders and their are safety chains on the catwalks themselves. Whoever is getting the parts just unhooks the chain in the designated area where the parts are. It’s a two-person effort, that way the person getting or returning parts isn’t doing everything themselves and there is no safety issue.

What It Does —

The shop has five catwalks throughout the three-story facility: • Two on the first floor • One in the paint area • Two in the basement The catwalks store spare parts, tools and surplus shop supplies. Peotter notes that he can buy shop supplies in bulk and designate a catwalk or a section of the catwalk to house the materials. Each catwalk has designated sections for different things such as parts, tools or shop supplies. Peotter notes that they will be adding another one by the end of the year in the wash area.

The Cost —

The two custom-made catwalks the Peotters added cost a total of $13,000.

The ROI —

Peotter Auto Body’s technicians like the catwalks, as they are able to get a hold of the parts they need with ease.

“In a year, the catwalks pay for themselves,” Peotter says. “There is also a definite time savings associated with having the catwalks. We can keep all the parts for a job in one specific place and that helps our team keep the shop floor clean and move around with ease.”

The newer catwalks allow for more parts storage. The shop can pre-order more parts before the initial estimate and can then work on the car as soon as it comes in.

He notes that they free up roughly 600 square feet of space on the shop floor and after speaking with a consultant he learned that each square foot of the shop floor produces $25 per day for a working bay. In total, these catwalks help the shop produce an additional $15,000.

December 2017 | fenderbender.com 65

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