FenderBender - February 2019 by EndeavorBusinessMedia-VehicleRepairGroup

FENDERBENDER.COM / FEBRUARY 2019

CONSUMER PSA: WHY YOUR CUSTOMERS NEED YOU AS AN ADVOCATE, NOW MORE THAN EVER PAGE 34

Providing 20 Years of Strategies & Inspiration for Collision Repair Success

LEVERAGE

Knowledge is Power Tiffany Menefee got her start in the industry as an insurance adjuster—a background she relies on heavily now in her role as owner of her Texas shop.

YOUR

STRENGTHS Find your shop’s unique selling proposition—and capitalize on it PAGE 40

WHAT DOES YOUR BODY LANGUAGE CONVEY? PAGE 50

E-PAY: THE FUTURE OF CUSTOMER CONVENIENCE PAGE 54

THE SECRET TO CONTROLLING SUCCESS PAGE 72

February 2019 | fenderbender.com 1

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February 2019 | fenderbender.com 3

HIGH QUALITY

COLLISION REPLACEMENT PARTS FROM START TO FINISH

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Oâ€™REILLY CARRIES A WIDE SELECTION OF COLLISION REPLACEMENT PARTS FROM THE BRANDS YOU CAN TRUST.

REWARDS FOR PURCHASING & INSTALLING THE BRANDS YOU KNOW & TRUST

FOR DETAILS VISIT FIRSTCALLONLINE.COM 4 fenderbender.com | February 2019

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february

0 2 .1 9 / V O L U M E 2 1 / N U M B E R 0 2

Top Hospitality Owner Robert Grieve makes sure the staff at his Colorado shop is focused, first and foremost, on keeping clients happy.

F E AT U R E

PROFILE

C A SE STU DY

S H O P TA L K

MICHAEL HOBBY

EDUCATE YOUR CUSTOMER

LEVERAGE YOUR STRENGTHS

With new vehicle technology and changing claims processes, being a resource for your customers is more important than ever.

Being a non-DRP shop hasn’t hindered Tiffany Menefee’s relationships with insurers, largely thanks to her background as an agent.

BY KELLY BEATON

BY MELISSA STEINKEN

OFFER EASE Offering electronic payment options is one way to become a more convenient resource for customers. BY MELISSA STEINKEN

PRIORITIZE YOUR CUSTOMERS Robert Grieve runs his $4 million shop with one simple philosophy: He makes each customer that walks in feel like a priority. BY MELISSA STEINKEN

Printed in the U.S.A. COPYRIGHT ©2019 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 St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: FenderBender, 571 Snelling Avenue North, St. Paul, MN 55104. February 2019 | fenderbender.com 5

TAB LE OF CONTENTS

FEBRUARY

QUICK FIX

Stress values to employees

Using AI for estimating

Shelton Collision Repair

The effects of using DRPs

Learning from recent recalls

Foster real connection

PAST THE PAGE

ANALYSIS

NUMBERS

VIEWPOINT

Improve cycle time

Telematics, ADAS’ effect on shops

Counsel your customers

BY KEVIN RAINS

LIGHT HITS

DRIVER'S SEAT

THE BIG IDEA

Maximize Your Facility Shelton Collision Repair installed a canopy for a number of purposes, including staging vehicles for deliveries and estimates.

CHRISTOPHER CL ARK

AWARDS INSIGHT

SNAP SHOP

Would you put a poor-fitting aftermarket fender on a car? Then why hang an inferior insurance product on your business? Intrepid Direct is a modern insurance solution for your business. We’re based on a shared set of values, experience working in the auto repair industry and superior protection at a much lower price point. Calibrate your garage insurance. Give us a chance to improve your situation by either pushing your existing provider harder or winning your business based on our merits. Either way, you win! To get a free quote, visit IntrepidDirect.com. Intrepid Direct Insurance operates as Intrepid Direct Insurance Agency, LLC. Products and services are provided by one or more insurance companies that are rated A+ (Superior), Financial Size Category XV by A.M. Best Company, Inc. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued.

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1/4/19 12:13 PM

S T R AT E G Y

How to evaluate first-time marketing efforts

The key to managing difficult employees

Shelly Bickett

IDEA SHOP

CUSTOMER SERVICE Improve your body language

LEADERSHIP

20TH ANNIVERSARY SERIES

IN THE TRENCHES

OUTSIDE THE LINES

Stay on top of ADAS trends

Set better goals BY JASON BOGGS

BY STEVE MORRIS

PROCESS DRIVEN Coach staff through a crisis

THINKSTOCK

BY RYAN CROPPER

February 2019 | fenderbender.com 7

TAB LE OF CONTENTS

ONLINE EXTRAS

CLICK ON THE LOGO BELOW FOR PRODUCT INFORMATION

Autel

CARSTAR

Auto Job Central

CCC Information Services

Automotive Art Paints

Drew Technologies

Interpid Direct Insurance

Kia Motors America

Mercedes-Benz

O'Reilly Auto Parts

SATA/Dan-Am Company

Polyvance

Sherwin-Williams Automotive Finishes

PPG

Spanesi Americas

WIRED FOR

Axalta Coating Systems

I-CAR

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

Synchrony Financial

Visit futuretechsuccess.org and find out how your hands-on talent is the key to an amazing technical career. TechForce Foundation When Techs Rock, America Rolls ℠ futuretechsuccess.org

8 fenderbender.com | February 2019

FUTURETECH

SUCCESS

™

COLLISION C A S T

EDITORIAL Bryce Evans Vice President, Content and Events Anna Zeck Editorial Director Kelly Beaton Associate Editor Melissa Steinken Staff Writer Jordan Wiklund Special Projects Editor Jason Boggs Contributing Writer Ryan Cropper Contributing Writer Steve Morris Contributing Writer Kevin Rains Contributing Writer

EDITORIAL ADVISORY BOARD Jason Boggs Boggs Auto Collision Rebuilders Elissa Larremore CBS 1 Collision Robert McSherry North Haven Auto Body

New FenderBender Podcasts.

Bob Pearson Pearson Auto Body Mark Probst Probst Auto Body Randy Sattler Rydell Collision Center

3 SERIES WITH NEW EPISODES EVERY MONTH.

ART AND PRODUCTION Zach Pate Art Director Lily Risken Graphic Designer Fue Vang Graphic Designer Lauren Coleman Production Assistant

SALES Chris Messer Vice President and Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson Associate Publisher 651.846.9459 / ajohnson@10missions.com Nathan Smock Sales Manager 651.846.9452 / nsmock@10missions.com

Adapt. Series featuring a rotating special guest each month. An insider’s look at how technology, trends and advanced vehicle design impact the way shops work today. New episode this month.

Ross Kirgiss Regional Advertising Sales 651.846.9485 / rkirgiss@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com

10 MISSIONS MEDIA Jay DeWitt President Mariah Straub General Manager and Production Manager Meghann Moore Bookkeeper and Client Service Specialist Katie Cornet Event Coordinator Josh Jaskulka Digital Media Strategist

Vision. Series featuring shop operator Kevin Rains. The go-to resource for leadership lessons, philosophies and success stories. New episode this month.

Kasey Lanenberg Marketing Communications Specialist HOW TO REACH US 571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.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 editor@fenderbender.com

Disrupt. Series featuring a rotating special guest each month. An introspective look at collision repair’s most pressing topics and the innovators pushing the industry forward. New episode this month.

ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue call 651.846.9488 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.

LISTEN AND SUBSCRIBE SEARCH “COLLISIONCAST” IN APPS FOR APPLE AND ANDROID

AUTOMOTIVE GROUP

PODCASTS

STITCHER

POCKET February 2019CASTS | fenderbender.com 9

SPONSORED CONTENT

“Body shops don’t want to respray,” Jeremy says. “They want to do it once, and then it’s done.” It’s no secret that re-dos are costly. There’s the paint labor, P&M costs, lost opportunity of a new job, the cost to run the booth, as well as the loss of efficiency and, more than likely, the next job’s efficiency, to contend with. It easily adds up to thousands of dollars. That doesn’t even count the time it takes to do sprayouts and the associated costs of lost paint materials. In a previous FenderBender story, Premier Collision Center’s lead painter Steve Jones (who helped drop the Duluth, Ga., shop’s P&M bill by $5,000 per month to a gross profit of 55 percent), detailed just how much sprayouts and color matching weigh down the paint process. “If I’m doing the sprayouts properly and checking my colors, I’m only painting cars one at a time,” he says. “Ninety-nine percent of your repaints are for color. If you’re repeating, that’s twice as much material you’re not getting paid for. That’s going to affect your bottom line, your efficiency, your paint and material numbers.” The ADAM5, though, isn’t designed to just reduce sprayouts. “It has the potential to eliminate sprayout completely, allowing shops to maximize their resources and become more efficient,” Dereck says. Other spectrophotometers read colors and present you with the best match from your database. Fine—great. What the ADAM5 is capable of producing, however, is the ability to tweak the formulation and get as close to true color as possible. It has five cameras instead of the industry-standard three, and was designed in conjunction with Automotive Art’s Motomix Plus Color Software; together, the total system removes any guesswork in fewer steps with greater accuracy. The five-camera breakthrough allows the ADAM5 to match any metallic, pearl, or xirallic with pinpoint accuracy. “Take it one step further,” Dereck says. “Depending on the age of the car, and particularly with bright colors and UV damage, the material deteriorates. The spectro actually matches the deteriorated color.” No more spraying Challenger Plum Purple on a 40-year-old Dodge whose purple has faded. No more false positive matches on the tops of the louvers on Dad’s 1968 Rally Red Corvette C3. “The spectro is reading the faded color and will give you the best formula to mix that same color, so when you spray it on an older vehicle, you’re going to get the best possible match,” he says. 21ST CENTURY CONNECTIVITY AND POWER The handheld ADAM5 functions like any other wireless app on your smartphone. It features a full-color touchscreen display, and Wi-Fi connectivity allows it to run anywhere in the world with a Wi-Fi connection, connecting instantly to Automotive Art’s Motomix Plus Color Software and database. The database is updated twice per day and wireless technology allows shop owners and technicians to send color formulas from the field back to their mixing rooms for increased efficiency. The ADAM5 is also equipped with a built-in memory that can store up to 30 readings, ensuring your shop keeps running—and the repaint and repair can continue—during Internet outages. Motomix Plus also works in the cloud, allowing the software to function on any device—computers, tablets, mobile phones—in the office and on the shop floor, as well as remotely, from garages to crash sites, offering three distinct advantages: First, the ADAM5 stores your custom formulas in the cloud, which allows them to be shared across mixing rooms within jobber stores and larger body shop networks. Next, Motomix Plus enables customers to have access to the most up-to-date formula database available without having to remember to update any software on their PCs. Finally, every reading from ADAM5 can be sent directly into Motomix Plus from the

field, so jobber reps can take measurements in body shops and send their readings directly back to the store for mixing via Wi-Fi. “You’re giving the body shop the ability to lay down the best possible match and avoid respraying or redoing any part of it,” Dereck says. “It will save money. It will allow body shops to perform their jobs faster, more efficiently, and produce better work for their clients.” And though the spectro can’t help with spilled paint, it can manage flop. That’s the breakthrough of the five-camera system. “That’s the difference,” Jeremy says. “It can look at the color from different angles and manage and understand the pigments that allow the ‘flop’ to occur.” Dereck offers another example. “Imagine matching someone’s eyes—imagine how hard that would be to do manually,” he says. “Shop owners, colorists, and technicians face the same challenge. “The spectro will do what these highly technical and skilled people can do—it will augment their abilities,” he says. “What we’re doing now is giving the body shop the tools to ensure that, no matter what position they find themselves in, they have the opportunity to produce the best level of work for their customers. The Adam 5 will make highly skilled colorist even better by enhancing their skills and allowing them to produce the best color match possible the first time, every time.” Can it play music? “No,” they both laugh, “we’ll save that for the ADAM6!” THE FUTURE OF COLOR MATCHING TECHNOLOGY The ADAM5 was a massive undertaking. It spent over two years in development, and works exclusively with Automotive Art’s paint database of over 150,000 colors and tones. It launched at AutoMechanika in Germany in September 2018, and saw its North American debut at the SEMA trade show in Las Vegas soon after. The ADAM5 was met with rave reviews. “It’s smart,” Dereck says. “If you tell it the car manufacturer and color code that you’re scanning—say, a Honda—it will list that manufacturer’s colors first, along with the projected accuracy of the color match.” But here’s the kicker: “The software will then give you the option to select perhaps a different formula, from a different manufacturer that gives you a higher projected color match without any formula adjustment. So you may end up spraying your Honda with a Mercedes color, simply because it gives you a better match.” In other words, the ADAM5 matches the color of the car, and not the manufacturer. It can match colors either using its standard formula database of known manufacturer’s codes, or organically develop formulas because the color correction algorithms intuitively understand how Automotive Art’s toners work in unison to produce the best possible match. “You’re literally matching what’s in front of your eyes,” Dereck says. The ADAM5 is available now. It comes with a proprietary license, as the spectro only works with the Automotive Art system. “The ADAM5 is a testament to the type of people we’ve been able to attract and the talent we have in our organization,” Dereck says. From humble beginnings as a jobber store in Barbados, Automotive Art Paints is now a global manufacturer of automotive refinish and products such as the groundbreaking spectrophotometer. The company employs about 450 people in the Caribbean Islands, another 150 in Poland, and several dozen in the United States. “Any paint company will tell you the achievement we’ve made with the ADAM5 is a huge achievement,” Dereck says, “and what we’ve accomplished is nothing short of remarkable.” Learn more about the ADAM5 at http://bit.ly/2PP4QOn.

February 2019 | fenderbender.com 11

12 fenderbender.com | February 2019

PAST THE PAGE COMMENTS, DISCUSSIONS, FEEDBACK AND MORE FROM AROUND THE WEB

PODCAST

COLLISION C A S T

Podcast Primer

How I Work: Harrison Rusk Each month, FenderBender features a day in the life of a shop operator. In January, the magazine examined the work/life balance that general manager Harrison Rusk aims to create for employees at Master Car Care and Collision in Houston. The Texas facility handles 120 collision repairs per month, but Rusk nevertheless helps lead a family-operated business that values keeping life in perspective. One way in which Master Car Care and Collision caters to employees is by utilizing staggered scheduling. Essentially, the staff is split into thirds, and each of those three “teams” begins its workday at a different time. Employees either arrive at the Houston facility shortly before it opens each workday, precisely when the shop opens, or about one hour after customers begin rolling in. “I started this method when I got into the shop because I wanted to give everyone the chance to get home at adequate times,” Rusk explains. "People in this industry work [too many] long hours.” The entire story can be read online, at fenderbender.com/harrisonrusk.

BLOG POSTS

TESS CATHERINE PHOTOGRAPHY

Reporter's Blog: Stressing Core Values to Employees For the website's weekly blog post, FenderBender recently interviewed Bill Park, who has a wealth of collision repair experience, about the most important elements of being a business leader. In Park’s opinion, stressing your values to your staff is paramount. The current CEO of Axiom Accident and Hail Repair in Colorado—who also served as an executive for ABRA earlier in his career—feels that, once an entire staff embraces their leaders’ core values, employees tend to require very little direction from their superiors. “I can give you an example,” Park says. “If your company’s core value is having active learners, then [employees] don’t have to be told, necessarily, in order to be trained. It means you’re actively seeking to improve yourself personally and professionally. And it’s visible.” At Axiom, Park recently noticed that a technician spent $2,000 to master PDR work, for example. To read the full blog, visit fenderbender.com/corevalues.

FenderBender produces four podcasts per month, with topics aimed at offering collision repairers tips to allow them to work as effectively as possible. Recently, Charlie Robertson, the president of the Collision Career Institute, appeared on CollisionCast to offer his insight on how shop owners can prepare their entry-level employees for success. Robertson, a former longtime collision repairer in his own right, feels shop operators can make their young employees an asset if they can teach them in a hands-on manner, in a largely stress-free working environment. “These young people,” Robertson says, “we’ve got to see the world through their eyes. Collision repair is an amazing career. … And to see these [technological] changes coming about quickly, they’ve got to be adept to learning on the fly. And that doesn’t happen in traditional learning environments today. “If there’s an open environment that tolerates mistakes, that becomes our best training—through our mistakes. We need to use those mistakes as a learning opportunity...” You can listen to the entire conversation by accessing the podcast page at fenderbender.com/podcasts.

JOIN US ONLINE fenderbender.com fenderbender.com/facebook twitter.com/fenderbendermag fenderbender.com/linkedin instagram.com/fenderbendermag

February 2019 | fenderbender.com 13

BY THE NUMBERS THE TOPIC S, TRENDS AND METRIC S DRIVING YOUR OPER ATION

THE EFFECTS OF DRP USAGE

94%

Does heavy direct repair program (DRP) usage guarantee a shop will rake in massive sales volumes? Not necessarily, but judging by the 2018 FenderBender Industry Survey, most shops’ bottom lines are positively impacted by DRP programs. In fact, shops with 10 or more DRP partnerships tend to have larger yearly sales volumes—not to mention faster cycle times—than shops with few (or zero) DRP partnerships, according to the survey’s findings. Here’s a breakdown:

of shops with 10+ DRP partnerships have a yearly sales volume of $1 million+ 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5 or more employees

Yearly sales volume of $1 million+

Job-start-to-completion cycle time of 7 days or less

Net promoter score of 90%+

Average repair order of $3,000+

0 DRPs

1-3 DRPs

4-6 DRPs

7-9 DRPs

10+ DRPs

A few months back, FenderBender examined DRPs’ influence on technology purchases; the article noted that, in the magazine’s 2017 Tech+Tools Survey there was a major difference between the technology upgrades at both DRP-heavy and DRP-light shops. The article can be found online at fenderbender.com/drpsinfluence.

14 fenderbender.com | February 2019

PEXELS, STAFF GRAPHIC

LEARN MORE

A new line of parts. A new source of revenue. Introducing Mercedes-Benz StarParts. Delivering more than just quality, accuracy, and fit, StarParts is an authentic parts line designed for vehicles 5 years and older that is: â€˘ Built for high functionality and fit â€˘ Backed by a one-year warranty* that includes parts and labor â€˘ Designed to enhance margins and help grow profits for your shop in the long run To order StarParts, contact your Mercedes-Benz dealership today. *To learn more, visit mbwholesaleparts.com/StarParts.

February 2019 | fenderbender.com 15

AWARDS IN

TECHNICIAN PROFESSIONAL COLLISION FOLEY, ALA.

LLI

JIMMY HICKMAN —

FINES HE

AWARDS NOMINEE:

AWARDS INSIGHT

P SION RE

FenderBender Awards Insights feature past FenderBender Award nominees. For more information, go to fenderbender.com/awards.

Seeking Continuous Efficiency B Y K E L LY B E AT O N

Embrace a Teamwork Concept.

In a few short years, Hickman has ascended from the role of a detailer to an accomplished structural repair technician. And, Hickman did so by receiving mentorship early in his career, he says, which has inspired the technician to pay that selflessness forward. Now, during each workday at Professional Collision, Hickman gains fulfillment by helping co-workers make every repair as smoothly as possible. “I like to come in and help everybody out, and make sure everybody’s got everything they need,” Hickman says. “If somebody’s got a problem with something, I don’t mind going over there and helping them figure it out—I talk to them, find out what they’re struggling with, and help them solve that. “Say they can’t get something lined up right; I’ll go over there and help them figure things out and try to talk them through it. “But I won’t just do it for them. Because, 16 fenderbender.com | February 2019

if you do something for somebody, they’re not learning. And, they’re going to keep coming back to you, asking you to do it all the time. But, if you show them and talk to them—and walk them through it—then they might actually pick up on it.”

Take Pride in Training.

Greg Hagan, the general manager of Professional Collision, doesn’t need to be prompted to sing Hickman’s praises. Hagan will tell you that the body technician “has an attention to detail and standard of quality that’s second to none. “He has such … passion for learning and perfecting his abilities, and gaining knowledge of the repairs,” Hagan adds of Hickman. “He’s the young ‘draft pick’ you can build a team around for decades.” The technician earned his blue-chip prospect status in part because of his eagerness to take training courses, like those offered by I-CAR.

“Cars are constantly changing,” Hickman notes. “And, if you don’t keep up with the repair process it takes to fix these cars, then you’re going to end up with a bad repair, and that’s going to come back on you. And I fully believe that the person who repaired that car is responsible for that car; if it’s not repaired correctly, then the shop’s not to blame—you are, because you’re the one that didn’t take the time to make sure you did things right.”

Focus on Cycle Time.

Of all the KPIs that Professional Collision tracks, Hickman takes the most pride in the shop’s stirling cycle time of 2.7 days. He says the shop’s key to producing such an unparalleled cycle time is working with a sense of urgency, along with doing a prompt, complete teardown on vehicles early in the repair process. “Say we’re replacing a bumper, fixing the fender, and fixing a door, for instance,” Hickman says. “I would tear down everything—get the bumper completely apart, get the fender off the car to make sure there’s no damage behind there, get the door completely tore down. Then, as soon as that happens, we’ll write the estimate. … And we’ll go over that two or three times, to make sure nothing was missed. “I want to make sure that, when you pick up that car and you’re looking at it, you can’t tell I ever touched it. I want it to look exactly like it did when it came from the factory.”

FUE VANG

In the words of his boss, Jimmy Hickman has exemplary attention to detail. In the words of Hickman himself, his high standards are a point of pride. “When I was a kid, I made a lot of models—airplanes, cars, tanks, a little bit of everything,” explains Hickman, who nowadays is an I-CAR certified body technician at Professional Collision in Foley, Ala. “With the models, you want to do everything right—any little details really make things stick out. And that’s something you take pride in. “And that’s the same with my work—I take a lot of pride in my work.” Hickman, in his fifth year in the auto industry, takes pride in the fact his employer has a CSI score of 95.3. He also gains gratification from the fact that Professional Collision’s cycle time (2.7 days) is nearly a day better than any nearby competitor. Hickman, a recent FenderBender Awards nominee, explains how he has helped Professional Collision continuously improve its shop performance.

DRIVER ' S SE AT

A Case for Education As vehicle technology continues to evolve, educating consumers is more important than ever

NICK SPAETH

Roughly a year and a half ago, I was driving my 2005 Honda Civic

(super cool; I know) down a residential street when an SUV pulled out of an alleyway and hit my car on the front driver’s side. I was fine, thankfully, and, at first, it seemed like my car was, too. Just some minor damage; in fact, my insurance carrier told me that my vehicle even qualified for a photo estimate because the damage seemed so minor. Sweet! Saves me quite a bit of hassle and back and forth, right? Well, that positivity quickly evaporated when an appraiser called two days later and told me, “Yeah … your car’s totaled.” As collision repairers, you probably saw that ending coming. And, thanks to my work, I knew about the limitations of photo estimates and wasn’t all that surprised myself. But still, it was awful. I had a whiplash injury that was sending me to the chiropractor three times per week and now I had to find a new car, too? No one told me that was a possibility! Needless to say, it made an already inconvenient situation far more annoying (and expensive)—and it didn’t make for a great customer service experience. I even switched insurance carriers after it was all wrapped up because I was so irritated. Of course, situations like what happened with my vehicle aren’t uncommon. It’s actually the focus of this month’s feature story, “A PSA to Customers” (p. 34). As associate editor Kelly Beaton writes, vehicles have changed rapidly in recent years—as has the collision repair process, by default. But for the average consumer, who only gets in an accident every seven years, that’s a pretty big gap in time. It’s no wonder there’s a huge lack of knowledge about the collision repair process among drivers. That’s where you come in. As shop owners, you’re in the fortunate position of being able to close that gap and serve as a resource to customers. I can tell you from experience I would’ve been eternally grateful to have someone in my corner post-accident, offering guidance and explaining the various steps in the process. Even with the increase in technology, customers still crave personal interaction and, perhaps more importantly, want to feel good about their decisions. Education and even simply taking the time to talk with customers goes a long way, and can earn you customers for life. There’s no one who knows this business more thoroughly than you do, so who better to act as the expert to customers?

ANNA ZECK EDITORIAL DIRECTOR a z e c k @10 m i s s i o n s .c o m

February 2019 | fenderbender.com 17

CARSTAR CELEBRATES 30 YEARS OF EXCELLENCE Since the beginning, CARSTAR has been unstoppable and it plans to accelerate its growth for years to come.

CARSTAR has kicked 2019 off with a bang as it enters its 30th year of business. With record-breaking growth, trailblazing programs and a premier network of franchise partners, CARSTAR is a true force in the collision repair industry.

that you could not do by yourself, from hosting golf tournaments to procurement support, while still being a local owner and operator.”

Driving CARSTAR forward are its exclusive programs including the EDGE Performance Platform, an Founded in 1989 on the belief that a network of operational support that gives its network the tools high-quality collision repair facilities would benefit needed to reach new levels of KPI performance as consumers and the insurance industry, CARSTAR paved well as CARSTAR University, an online portal filled its own future, never wavering on its founding values. with vendor, operational and industry training. “We were the first CARSTAR store, joining the network on October 1st 1989,” says Gerald Wicklund, owner of Wicklund’s CARSTAR Collision Center. “Our location in Liberty, Missouri is now a three generation CARSTAR. To this day, I would highly recommend that a person join CARSTAR purely for the fact that you can do things

CARSTAR.com 1-800-CARSTAR 18 fenderbender.com | February 2019

QUICK FIX NEWS

IDEAS

PEOPLE

TRENDS

Ample curb appeal The operator of Shelton Collision Repair in Derby, Kan., invested heavily in an achitect five years ago and was left with a sleek facility featuring lots of aluminum accents, plus a vibrant red coloration.

ANALYSIS VIEWPOINT LIGHT HITS SNAP SHOP

CHRISTOPHER CL ARK

SN A P SHOP

February 2019 | fenderbender.com 19

Kia.com

If itâ€™s not in the right box, itâ€™s not genuine.

From headlights to tail lights, bumpers to fenders and hoods, there is no substitute for genuine. The only way to assure that you are getting Genuine Kia parts, backed by the Kia Warranty, is to order them from your local Authorized Kia Dealer. Contact your local Kia dealer for assistance and delivery of the parts you need.

*Genuine Kia replacement parts (except battery) sold by Authorized Kia Dealer under warranty are covered for the greater of (1) the duration of the New Vehicle Limited Warranty or (2) the first 12 months from the date of installation or 12,000 miles, whichever comes first. Labor charges not included when not installed by an Authorized Kia Dealer. Warranty is limited. See Kiaâ€™s Replacement Parts and 20 fenderbender.com February 2019 Accessories Limited| Warranty for further details.

QUICK FIX

ANALYSIS

EXAMINING THE POTENTIAL OF AI

Artificial intelligence could speed up the estimate writing process—but is it right for all body shops? BY MELISSA STEINKEN

THINKSTOCK

The collision repair industry is under-

going a transformation, and new technology is being introduced at a rapid pace. And, often, the introduction of new tech leads to skepticism—is it simply a shiny new object, or will it alter the way people work? Jason Verlen, senior vice president of product management at CCC Information Services Inc., is very aware of that line of thinking as it pertains to CCC’s Smart Estimate tool, which was launched in late 2018. The software uses estimating logic and artificial intelligence (AI) photo analytics capabilities to write an initial estimate on a vehicle automatically. The adjuster can then look over the estimate to sign off on it or make tweaks, as necessary.

As of now, the product is only available on the insurance side, but CCC has long-term plans to extend the service to body shops, Verlen says, with the hope of producing fewer supplements, cutting down estimating time, and potentially eliminating totaled vehicles from arriving at shops. So, shiny new object, or work-altering tool? Steve Trapp, strategic accounts manager in North America for Axalta Coatings Systems, says he is still weighing the true usefulness of AI in the collision repair space. While no one can predict the future, he says, if AI helps to identify just 80–95 percent of the damage, it would save significant time in estimating and potentially prove very valuable to shops.

But it all comes down to correct use, and shops not using technology as a means to bypass attention to detail. If estimators simply accept whatever the tool tells them, Trapp suggests, then it could be detrimental to the business. “I can see both sides,” Trapp says.

How It Works

Prior to the introduction of the Smart Estimate tool, CCC already offered AI technology in the claims process. In its AI-powered workflow, a customer can upload a single photo of the vehicle’s damage. CCC’s system can then analyze the photo using AI to determine if the vehicle was potentially a total loss or repairable. If the car was deemed repairable, the customer would then be asked to take additional photographs of specific areas of the vehicle, and from specific angles, at the request of the CCC system. Those photographs get sent back to the insurance company, and the adjuster could then use those to build an initial estimate. The new CCC Smart Estimate tool works like this: the software utilizes photo analytics to pre-populate an estimate with suggestions for human estimators to review. The software, in essence, applies AI to vehicle collision photos to predict February 2019 | fenderbender.com 21

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ANALYSIS

MAKE EVERY JOB A JOB WELL DONE.

repair requirements and suggest each estimate line. The company says that the “guided” nature of its new software allows entry-level estimators to be trained rather quickly. The guided estimating parameters are also customizable, to align with individual insurer business rules. Ultimately, the new product was designed to create a scenario in which telematics-enabled vehicles can alert insurers in real time when their policyholders have been in an accident. Then, in theory, insurers could engage their customers through video chat, and send a link for a mobile app to help drivers submit accident details. The new software would then use AI to detect vehicle damage and visually depict that damage by using heat maps.

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Mike Cox, owner of Ed’s Collision & Glass in Maple Grove, Minn., says when he contemplates if such an estimating tool would be useful for his shop, he is more interested in knowing how it affects how he trains his estimators and how accurately each estimator does the job. If the tool can walk through each piece of the car that is (and isn’t) damaged, then Cox says it could be helpful. Otherwise, such a tool could hinder the time he uses to teach his estimators how to properly look for damage on the vehicle with their eyes and understand how damage on the exterior can affect the interior of the vehicle. The tool would potentially make it easier for estimators to slack in looking for damage. Normally, an adjuster doing estimates onsite and by hand can complete roughly four per day. Conversely, if a virtual estimate is done, then adjusters have the ability to write up to 14 per day, according to Verlen. The tool was designed to be more configurable for user, Verlen says. For example, the adjusters now can set the tool to include high-probability items, like parts, so that the person does not have to find these items and can focus on the remainder of the estimate. The person can also set the tool so that the adjuster can select specific parts, like OEM, aftermarket or recycled. “AI is new in this domain and there likely healthy skepticism around it,” Verlen says. “But, as professionals interact with it, this builds trust.”

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GETTING CONSUMERS TO RESPOND TO RECALLS QUICKER A longtime auto safety advocate examines air bag recalls that have drawn on for years B Y K E L LY B E AT O N

According to a recent NHTSA update, nearly 17 million faulty Takata air bags are still in use, despite years of recalls. As of December 2018, at least 23 people had been killed worldwide due to faulty Takata air bag inflators, which have been found to explode with too much force, firing shrapnel at drivers and passengers. The inflators grow more dangerous as they age, due to the fact that ammonium nitrate found within them deteriorates because of factors such as high humidity and cycles from hot temperatures to cold. It’s an issue of great concern to Jack Gillis. “The Takata situation is a bit unusual, because it’s so widespread,” says Gillis, the executive director of the Consumer Federation of America. “It’s really the sheer numbers of vehicles that are involved, and the fact that the industry was incapable of quickly supplying replacement parts.” Gillis—a past NBC television consumer correspondent as well as a former executive director of the Certified Automotive Parts Association—currently serves as an advocate on issues relating to auto safety. He spoke with FenderBender recently, further examining air bag recalls that have greatly impacted the auto industry. In your view, is there anything that could’ve been done to get this Takata air bag recall completed quickly?

Unfortunately, repairers’ hands have been tied by the fact that there simply aren’t enough replacement parts. So, there’s very little that collision repairers can do. It’s really up to the auto manufacturers to put pressure on the suppliers to get more replacement parts in the system.

COURTESY CONSUMER FEDER ATION OF AMERICA

What measures could be taken to get the public to respond to vehicle recalls more urgently?

First of all, often consumers don’t realize that their vehicle has been involved in a recall. So, collision repairers would be providing an excellent customer service if they checked their customers’ VIN and informed them as to whether there are any open recalls. It’s an easy thing for repairers to do. And it’s a great service to their customer. They should remind consumers that these repairs will be done by the manufac-

turer for no charge. The collision repairer can put themselves in a very good light with the consumer by No. 1, informing them if they have a recall, because many of us don’t get the notice. And, No. 2, that it’s going to be fixed for no charge if they bring it back to dealerships. Why don’t consumers always receive the recall notice?

Well, I’m calling for a number of changes to the system. First and foremost, consumers are often notified by the manufacturer via traditional postal mail. And that mail can look like junk mail. So, consumers often miss it. I’d like to see a system in place where, when consumers go to re-register their vehicles, the DMV will run a check on their vehicle—because they have the VIN—and let consumers know that they have open recalls. Are there ways that recall notices could be delivered that would better express

Jack Gillis Executive director Consumer Federation of America

the urgency of the matter?

We’d like to see a system set up by which the manufacturer notifies consumers via email. … every two months until the recall is resolved. Again, like junk postal mail, junk email sometimes gets hung up. But, the more times, and the more often that you notify the car owner, the more likely they will be to respond to it. Right now, there’s about a 70 percent response rate to recalls. But that still means that, when you consider how many millions of vehicles have been recalled, that there are still millions of unrecalled vehicles driving on the nation’s highways. And, not only is that a hazard for the owner of that vehicle, but for the rest of us driving around those vehicles. What else needs to change with regard to how consumers are educated about vehicle recalls?

Well, most dealers are extraordinarily good marketers. They spend a lot of time and effort marketing their cars and their dealerships. They need to put that same time and effort into creatively communicating about recalls. It really can’t be a glossy promotional piece. It’s got to be a warning notice. The car companies and the dealers need to package this information as if it’s a serious warning, and not a piece of junk mail. Corporate America and the government have developed massive database and information systems for advertising, marketing and tracking purposes—it’s time to put those same systems in place for remedying recalls. February 2019 | fenderbender.com 25

QUICK FIX

LIGHT HITS

FORD RECALLS 874K TRUCKS FOR FIRE RISK In late December, Ford recalled 874,000 pickup trucks in North America (410,000 of those in the U.S.) with engine block heaters for fire risks. The second largest U.S. automaker said the recall covers some 2015–19 Ford F-150 trucks, along with the 2017–19 Ford F-250 Super Duty, F-350 Super Duty, F-450 Super Duty, and F-550 Super Duty pick-up trucks. Ford said water and contaminants may get into the block heater cable’s splice connector, causing corrosion and damage and potentially a fire. Ford told U.S. regulators it is aware of reports of three fires in Canada linked to the issue, but unaware of any reports of accidents or injuries.

REPORT: NEARLY 17M FAULTY TAKATA AIR BAGS STILL IN USE Despite years of recalls involving faulty Takata air bag inflators, one–third of the

recalled inflators had yet to be replaced as of late December. According to an annual report on recalls released by the government, recall repair rates across 19 automakers involved in the recalls increased 30 percent over the course of the past 12 months (as verified by the National Highway Traffic Safety Administration). But the report indicated that 16.7 million faulty inflators out of the 50 million under recall have yet to be replaced, according to the Associated Press. The Takata air bag devices use the chemical ammonium nitrate to create a small explosion that inflates the air bags. But inflators have been found to explode with too much force, firing shrapnel at drivers and passengers. At least 23 people have been killed worldwide due to the problem. The inflators grow more dangerous as they age, due to the fact that ammonium nitrate deteriorates in high humidity and cycles from hot temperatures to cold.

"More exposure over more time to high heat and humidity further degrades the Takata inflator's phase-stabilized ammonium nitrate compound, making it more porous, more volatile and more prone to transform from a life-saving device to a lifethreatening," the report says.

CIECA FORMS STANDARDS DEVELOPMENT COMMITTEE CIECA has announced the formation of a new standards development committee with the Property Insurance & Restoration Conference (PIRC), a forum for discussions between property insurance and restoration stakeholders. The PIRC-CIECA Data Standards & Accessibility Committee was formed to address issues within the property restoration and related industries as it applies to data exchange and accessibility. C O N T I N U E D O N P. 2 9

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A main focus for PIRC is the cycle time and efficiencies for returning properties to a pre-loss state after damage. The first objective of the committee is to develop a single focus of its scope, objectives and goals. All business needs will be identified to enable the electronic messages to move readily between parties. The PIRC-CIECA Data Standards & Accessibility Committee meets weekly on Thursdays at 2 p.m. Eastern Time via conference call. CIECA members and any other interested parties are invited to join.

ROMANS: TELEMATICS, ADAS CHALLENGING BODY SHOPS “A 2017 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace,” the 13th annual white paper by the Romans Group LLC, recently revealed how the four industry pillars have helped strengthen and grow the collision repair industry. The top five repairers in the U.S., during

the report’s timeline, were Caliber, Service King, ABRA Corporate & Franchise, the Boyd Group, and CARSTAR (Caliber and ABRA have since merged). Meanwhile, the collision repair industry has seen growth in Canada. The top four consolidators have experienced robust growth due to continued incremental organic growth, multiple-location platform acquisitions, an increasing number of single-location acquisitions, and a brownfield and greenfield build strategy. Five secular trends are causing more immediate challenges and opportunities for repairers and many other relevant constituent groups including auto insurance companies: telematics, 5G and the connected car; ADAS and the evolving autonomous vehicles; OE certification programs, and the technician shortage.

REPORT: NONSTANDARD AUTO INSURANCE SEGMENT APPEARS ON RISE There are initial signs that the private

passenger nonstandard automobile segment is beginning to improve after years of unfavorable results, including continued premium growth in 2017 and through mid-year 2018, The Insurance Journal recently reported. T he findings come from Best’s Market Segment Report, “Early Signs of Improvement in Nonstandard Auto Market,” and the report states that the recent improvements reflect a variety of carriers’ underwriting initiatives, including increasing rates significantly over the last few years. As the auto premium base expanded in 2018, loss cost trends and severity increases were in line with expectations. Some large national private passenger auto insurers expanded their presence in the nonstandard auto insurance market through more efficient technology platforms. The resulting competitive pressure on smaller writers has resulted in some being acquired by national writers.

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QUICK FIX

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SHELTON COLLISION REPAIR BY KELLY BEATON PHOTOGRAPHY BY CHRISTOPHER CLARK LOCATION:

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1. CREATING CURB APPEAL Brad Shelton has a passion for collision repair. He doesn’t, however, love the look of most body shops. That explains why the owner of Shelton Collision Repair near Wichita, Kan., invested heavily in an architect five years ago, when his collision repair business took over an existing building in Derby, Kan. Shelton, who dedicated 5 percent of his overall rebuilding budget to securing an architect, was left with a sleek facility with lots of glass, aluminum accents, and vibrant red coloration. “My goal all along was to not make it look like a body shop—with the typical peaked roof and a sign in the upper eave,” Shelton explains. “I tried just going to a builder [initially] and saying, ‘This is what I want,’ and they don’t really understand. The architect did everything—I’d highly recommend that anybody that’s building new construction like that go through an architect.”

because you can get out of the rain, or out of the brutal sun of summertime,” Shelton says of the canopy.

3. SHOP FLOOR EFFICIENCY Insurance adjusters, vendors, and customers all seem to reach the same conclusion when they tour SCR: the facility’s shop floor features exemplary cleanliness and order. And that didn’t happen overnight; Shelton took great care to make sure his employees’ equipment is always in its proper place. A while back, Shelton invested in several Innovative Tools rolling parts carts equipped with wire baskets. Now, SCR’s procedures dictate that parts are stacked atop the carts, and that each repair job has a rolling cart associated with it. All the necessary clips, fasteners and the like are right there on the cart, so technicians don’t require excessive, time-wasting movements to repair vehicles.

2. MULTI-PURPOSE CANOPY

4. INVESTMENT IN ALUMINUM WELDING

Shelton, entering his 20th year as the owner of SCR, also had no interest in utilizing a typical estimating bay at his new facility. That helps explain the canopy for which his shop is well known. The covered area is multi-purpose, and you’ll often find vehicles staged there in preparation for delivery. “We felt like it added a bit of appeal,

In 2015, Shelton spent nearly $9,000 on a Pro Spot MIG welder that can be used for aluminum repair. That welder’s amenities include five separate heads. “Aluminum is here, and I feel like it’s here to stay,” he says. “When I was buying, I bought [with the intent] to get us well into the future.”

30 fenderbender.com | February 2019

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THE BIG IDEA KEVIN RAINS

Connecting at a Deeper Level Four tools to foster real connections

MICHAEL HOEWELER

On my voicemail message, I make it

clear that I hate talking on the phone. I encourage people to either text me or email. “If you choose to leave me a message I will do my best to eventually get back to you, but no promises. For faster connection, please text or email.” This often gets a chuckle and people will sometimes leave a message. However, if they really want to get a hold of me, they text and email as well, just in case I’m serious, which I am. (Did I mention I hate talking on the phone?) I’ve been wondering lately if my aversion to the talking on the phone is a symptom of not wanting to really connect, not wanting to be vulnerable. What am I avoiding? Perhaps, as an introvert, I’ve just had enough of people. Texting and email can keep things at a shallower, much safer level. Maybe I’m just tired, in general, and don’t have the energy for any more relationships and text or email is just my way of keeping things quick and easy and on the surface. It could just be that I find email and text more efficient. With email and text, I can multitask, whereas a call requires the vulnerability of a good give and take conversation. I blame technology. Mobile phones, social media, the internet—we’ve made connecting easier, while our ability to hold a meaningful conversation and cultivate real relationship atrophies like an unused muscle. Yet, even though technology is an easy target for my blame, I am still responsible for how I use or misuse it. How might connecting at a deeper level affect our ability to lead and influence others? How might fostering real connection increase something as mundane, yet critical, as our sales closing ratio? How might having a genuine conversation aid us in leading others to do their best work and help us build the kind of shop that we can be proud of? As Sherry Turkle, author of Reclaiming Conversation: The Power of Talk in a Digital Age, writes, “It is not a moment to reject technology but to find ourselves... to acknowledge the unintended consequences of technologies to which we are vulnerable, to respect the resilience that has always been ours.”

Here are a handful of tools I’m going to use this month to deepen my ability to connect.

Curiosity. One of the best things we can do

to foster a real connection is to be genuinely curious about what another person says. I recently had a friend tell me how much they like black and white movies. While I love movies, I have almost no interest in older films. My first reaction, then, was to tease him and remind him how old that makes him sound. Instead I chose curiosity: “Why do you like black and white films so much?” That question led to a lot of learning on my part and, because it was something of great interest to him, it deepened our friendship. In the end, he loaned me three of his favorite films, which will likely open up even more conversation.

Solitude. At first, this may seem like the

opposite of connecting but really, it’s the basis of it. Often, we are unable to connect deeply or hold a significant conversation because we don’t really know who we are or what we think. Taking time to be alone is actually a great way to get grounded in who we are and what we think. When was the last time you had even a few hours to yourself to just be? When we are alone, we have an opportunity to discover who we are and what is really important to us.

Asking open-ended questions. This

goes hand in hand with being curious. Next time you ask a question, see if it can be answered with a “yes” or “no” response.

Or does the very question open the conversation up? For instance, if we ask a customer, “Do you like how this car drives?” They can answer with a “yes“ or “no” and it’s a dead end. Try, “What do you like about this car?” That opens up the conversation into all kinds of directions. Once it is answered, you can then follow up with more open-ended questions as you stay curious in the conversation.

Putting our phones away. When was the

last time you spent a significant amount of time without checking a device? For many, myself included, this can be a panic-inducing experience. I’ve become so afraid I’ll miss something important if I don’t have my phone nearby and check it often. But, in reality, the device can be the cause of me missing what is really important. If we’re constantly checking our phones when a customer, a team member or, even worse, a family member are right in front of us, what are we communicating to them? Basically, there’s someone or something more important that might “pop up” as an alert on my phone and I need to be ready to stop this conversation at any moment to tend to this urgent matter. It’s usually never urgent or more important than the person right in front of me. Solitude. Curiosity. Open-ended questions. Putting our phones away. Four tools that can help us foster real connection in a world that wants to drive us toward a shallow, distracted existence. I’m committed to using all four this month, even though I’m not yet ready to change my voicemail message. Not yet. So, don’t call me. But feel free to email me any feedback on this column and, who knows, maybe we’ll eventually have a real conversation.

KEVIN RAINS Kevin Rains is the owner of Rains CARSTAR Group with locations in Cincinnati, Ohio, West Chester, Ohio and Lexington, KY. He is also an industry consultant and founder of Body Shop 2.0.

E M A I L : kev i n r a i n s @ g m a i l .c o m 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

February 2019 | fenderbender.com 33

How to be the expert resource for your customer and guide them through the ever-evolving collision repair process BY K E L LY B E AT O N

34 fenderbender.com | February 2019

DOUG MARTIN, THE PRESIDENT OF THE INDIANA AUTO BODY

Association, has noticed an unsettling trait among many collision repair customers these days. All too often, Martin says, a look of confusion is etched on body shop customers’ faces, as they come to the realization that their required repair is going to be far more complicated than just paint and body filler. “On a regular basis we have vehicle owners stunned at the prices of repairs,” says Martin, the general manager of Martin’s Body Shop in New Salisbury, Ind. “A [recent] scenario was a 2018 Toyota Camry where a tree limb fell through the windshield and the dash, damaging the passenger air bag and radio internally. “The radio is $5,900. This customer was blown away; we had to explain to him how connected this piece is to the functioning of the electronics and driver-convenience features.” In 2019, vehicles are more complex and confusing than ever due to ever-evolving technology, and, as a result, body shop patrons often don’t know what they don’t know. Martin feels body shop employees need to step in and educate customers. He feels shop employees should strive to serve as an expert resource for customers, to guide them through the repair process. “The industry as a whole, we’re so focused on the day to day of making those repairs,” Martin says, “that we haven’t put enough effort into the education piece.” Because the typical driver visits a body shop just once every seven years or so, they often arrive at facilities like Martin’s Indiana shop largely clueless about required repair processes. “And a lot of the time, because of the accident, [collision repair customers] aren’t thinking through everything,” notes Martin. “They feel that, ‘Well, my insurance company’s just going to take care of it.’ So, generally, they’re pretty oblivious to it. … So, they don’t think to ask questions.” Evolving technology has brought about the advent of collision repair elements like photo estimating in recent years. And, in Martin’s experience, such innovations have made the relationship between collision repairers and their customers all the more impersonal—a fact that can make it difficult for shops to enlighten clients. “Now, with photo estimating, a lot of times [customers] don’t really speak with someone to turn a claim in,” Martin says. “And, the next thing you know, they send in some photos and a check shows up with no communication about what that means. “And that’s where we, as the shop, have to help bridge that gap so that they can understand it.” At Martin’s Body Shop, which has an average monthly car count of 80 and an annual revenue of $2 million, employees are encouraged to explain to clients that their shop is simply following manufacturers’ preferred repair procedures. “We try to use similar words as what OEMs would put in their processes,” Martin explains. “Say, for parts usage we would follow whatever that OEM would specify for that type of repair. “And, we basically just put it into lay terms for them, that, ‘Hey, this is how this particular manufacturer wants these parts used—they’ve been tested, they’ve been approved and been validated by that OEM.’ “The more information that we can give [customers] to build February 2019 | fenderbender.com 35

FE ATURE

A PSA TO CUSTOMERS

that trust, the more comfortable they feel,” Martin says.

THE INSURANCE ISSUE

At Ed Griffin’s body shop, he sees shock and awe on a daily basis. “Customers, you tell them we’ve got to do a diagnostic scan on their car, and they’re shocked,” says Griffin, co-owner of Griffin Paint & Body in Winnsboro, Texas, whose facility has an ARO of $3,000. “They say, ‘a computer scan? On a car repair?’ “They’re totally unaware as to the true cost of what these expensive ‘computers on wheels’ are nowadays.” But, as baffled as the average customer is about the price of diagnostic scanning, just as many are completely in the dark about making an insurance claim. “We probably spend more time preparing them as to what to expect with their insurance company—what the norm is for them to proceed once the agent has contacted them,” says Griffin, a veteran of 37 years in the auto industry. “Getting them educated with the process of the insurance company, I feel like that’s where we spend 95 percent of our time.” Upon arrival at Griffin Paint & Body, patrons are initially asked to fill out a customer information form, which asks if they’ll be filing an insurance claim and, if so, which insurance company they’ll be using. Griffin feels compelled to let customers know that, if they want a proper repair performed on their vehicle, then they might eventually be required to pay more than their deductible, invoke the appraisal clause portion of their auto policy, or … prepare for a potential legal matter. “We just can’t sugarcoat it for the customers, even though we’d love to not have to implement any of those options,” Griffin notes. “We have quite a few potential customers that become discouraged when they hear these options, though.” Insurance companies, Griffin adds, are businesses that need to worry about their bottom line. Thus, insurers tend to try and exhaust all avenues to keep claims costs reined in. Griffin, whose shop is entering its fourth decade in operation this year, says he rarely sees scanning accounted for on initial estimates from insurers, for example, despite the fact body shops often 36 fenderbender.com | February 2019

deem it a necessary element of vehicles’ repair process. “So,” Griffin says, “we immediately try to educate the customer … to inform them that their insurance carrier may not take care of them fully and make their car whole again without intervention from them—where the customer gets involved to get that procedure paid for. “[Insurers] do tend to listen to the customer if they know the customer is a little insistent on a procedure.” Griffin begins guiding potential customers by frequently updating his shop’s Facebook page with educational material like quick-hitting videos or posts that stress the staff’s experience and technological know-how. In his experience, the more his staff can enlighten and inform clients, the quicker they’ll grasp the complexity of modern collision repair. “It’s a great thing, to educate and to gain knowledge,” he says. “The more we can educate people, the better off we’ll all be [in the collision repair industry], and [customers] will understand and not oppose us. “Acceptance comes with understanding, and that’s where we’re at with customers; if we can get them to understand, then the more they’ll accept. “I wish the industry, as a whole, could reach out and educate customers that most repair shops are there to get their vehicle restored back to its pre-accident condition—we’re not trying to rip anybody off. … We just want to be paid for what we do, and to be able to perform that repair in the manner it needs to be.”

THE LESSON PLAN

The message was nothing out of the ordinary, yet it caught the ear of an unintended target. Burl Richards, who owns collision repair facilities in both Texas and Louisiana, was recently explaining the concept of diminished value to an elderly client. That customer’s son had been saddled with a damaged vehicle at his household one year prior, as well, and and he now lamented the fact he hadn’t known about diminished value claims earlier. But Richards, the president of the Auto Body Association of Texas, had good news for the young man. “I said, ‘In most states—in Texas, for one, you’ve got up to two years to make a diminished value claim, and, in some states even longer,’” Richards recalls. “‘So you could still pursue it.’” The young man was blown away. That’s just one example, Richards says, of how surprisingly uninformed many collision repair customers are. That’s why Richards, whose business boasts a 97 CSI score, has made it his mission to teach visitors at his facility. “The first objective on us,” he says, “is to educate the customer, and to explain to the customer what they can expect.” “If we can educate them on the front end, we have a lot better closing rate. … At the end of the day, if you’re explaining this to customers up front, and you’re explaining the process as you go through, that really affects your CSI score.” Richards has found that a 5–10 minute conversation between an estimator and a client can, indeed, make a significant impact at a body shop.

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FE ATURE

A PSA TO CUSTOMERS

The Ideal Educators The best employees to have educate customers regarding the collision repair process At Glaser’s Collision Centers, owner Aaron Glaser utilizes a simple approach to educate customers: slow down to speed up. In other words, by having employees of the greater Louisville, Ky., MSO thoroughly explain the collision repair process to customers early on, it often eventually saves Glaser’s time when repairs need to be approved. The small MSO has two particular sets of employees focus on educating customers about the ins and outs of the collision repair process: 1. CSR. Customer service representatives can be utilized to explain why repair measures like pre- and post-repair scanning are necessary, and break down typical insurance claims processes. Explanations like that can help a body shop set expectations for customers that are unfamiliar with collision repair. 2. Estimators. While CSRs explain insurance issues to customers at Glaser’s, the MSO’s estimators use that time to examine what types of repairs will need to be performed on a vehicle. “We explain to the customer that, if you drop your car off, we’ll disassemble it, do a thorough analysis, and send all [information] to the insurance company right away,” Glaser explains. “The CSR will explain that each insurance company is different, and so she’ll walk them through X,Y, Z insurance companies—you know, we’re going to have to submit it, get approval, and maybe pre-order parts depending on the type of repair. And then the estimators work with the customer as far as [explaining] what we’re doing with the vehicle, and what to expect parts-wise.”

38 fenderbender.com | February 2019

So, in recent months, the shop owner has refined his business’s process for giving customers a crash course on collision repair. The way Richards sees it, the key steps are as follows: 1. Utilize Marketing Measures. In recent years, many body shop operators have taken measures to express to customers through marketing campaigns exactly why pre- and post-repair inspections and scans are necessary— namely, because of the vehicle safety they help ensure. Richards is also a believer in such tactics. Shops’ Facebook pages can provide a cost-effective way to spread the word about a facility’s thorough safety measures. Additionally, many shop operators find radio ads to be as effective as ever at spreading the message that their shop is OEM certified and takes customers’ safety seriously. 2. Clarify Who’s at Fault. Once a customer has arrived at Burl’s Collision Center’s doorstep, estimators are instructed to get clarification from clients as to who was at fault in their accident. “Our estimators, at the point of contact with the customer,” Richards explains, “once they go greet a customer up front, that’s when they’ll have that conversation—you know, ‘Is it on your insurance company, [or] is someone else at fault?’” 3. Define OEM and Aftermarket Parts. A surprising amount of collision repair customers are unaware of the differences between OEM parts and aftermarket parts. So, Richards suggests providing clients with clear, detailed definitions of those terms. “We explain to them that, if we’re writing the estimate, we’re going to write it for all OEM parts,” Richards says, “and we’re going to explain to them if your insurance policy allows you to have aftermarket parts, or what they define as an LKQ part, this is what they are.” 4. Explain Diminished Value Claims. Over the years, Richards has had a few customers receive more than $5,000 of diminished value after their vehicle was repaired, due to diminished value stipulations. And what better way to get in customers’ good graces than by saving them significant sums of money?

“We explain to them that, if they’re insured, in the event that their vehicle may total, that they also have options through the appraisal clause,” Richards notes. For example, if customers “feel like they’re not being treated fairly or getting fair compensation for their vehicle, they have options. We’ve had customers that received as much as $6,000 diminished value.” 5. Make Information Easy to Absorb. Considering many collision repair customers are rather shaken up in the wake of their accident, or frustrated, Richards seeks to inform them of the overall collision repair process painlessly. That’s why, in early 2018, he had his employees show customers educational information on a large flat-screen TV in his shops’ customer lounge. Via a connected thumb drive, customers are provided with pertinent information such as how insurance policies typically work, which Richards says often sparks positive conversations. “We explain to them, ‘The insurance company has already written an estimate, and there’s a really good chance that there’s going to be some supplemental damage,’” he says. 6. Preach the Study of Policies. All too often, Richards hears visitors to his facility lament the fact that they didn’t read their insurance policy completely. Occasionally, clients haven’t read their policy at all. That notion makes Richards cringe. “We tell the customers, ‘Listen, talk to your agent; the insurance company might offer a writer,’” he notes. “Or, [the insurance company] might offer a policy that provides OEM parts.” Educating customers isn’t always easy, Richards acknowledges, considering customers often lack patience. Yet, it’s a worthy pursuit that can pay dividends down the line. “At the end of the day, we just want the customer to know that we’re working for them,” Richards says. “Educating the customer, if you do that on the front end, before the insurance company’s got an opportunity to sell their goods, then you have a lot better success. “Here’s what it does: it lets the customer know you’re looking out for their best interests.”

THE TECHNICIAN

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

autojobcentral.com

PROFILE

A THRIVING

INSURANCE RELATIONSHIP FOR TIFFANY MENEFEE, IMPROVING HER WORKING RELATIONSHIP WITH INSURANCE AGENTS HAS SECURED HER SHOP’S SUCCESS

BY MELISSA STEINKEN PHOTOGRAPHY BY CHRIST CHAVEZ

Leverage Your Past

Tiffany Menefee’s shop is comprised of 40 percent insurance work— with no DRPs—thanks to her background as an insurance agent.

40 fenderbender.com | February 2019

February 2019 | fenderbender.com 41

PROFILE

A THRIVING INSURANCE RELATIONSHIP

PRONTO BODY SHOP OWNER:

TIFFANY MENEFEE LOCATION:

EL PASO, TEXAS SIZE:

7,500 SQUARE FEET STAFF:

THE GLUE THAT KEEPS TIFFANY MENEFEE’S SHOP, PRONTO BODY SHOP, ON GOOD TERMS WITH INSURANCE AGENTS HAS BEEN HER DRIVE TO BUILD A GOOD RAPPORT WITH INSURANCE ADJUSTERS IN HER AREA. Menefee, owner of the El Paso, Texas, shop, acknowledges that it can be hard as a body shop owner to look at the situation from the insurance company’s perspective and vice versa. In fact, she has first-hand knowledge of how the two sides differ in training and procedure; before she bought Pronto Body Shop in 2015, she worked as an insurance agent for more than 20 years. “Most body shops will look at insurance companies as the dark side because [they’re] the ones taking the money, but it’s really all for the sake of the insurance agent to build cases to present to the boss,” she says. Menefee’s shop produces more than $1 million per year in revenue, with 40 percent of the work coming from insurance agents or adjusters recommending the business. And, Menefee’s shop does this while remaining a nonDRP facility. The reason? Insurance adjusters may not be privy to what is being done in terms of repair work and “what is going on behind the scenes,” Menefee notes. The lack of knowledge can cause tension and can cause body shop owners and insurance companies to disagree on repair costs. The benefit to forming a strong relationship with an insurance adjuster, specifically for a non-DRP shop, is more accurate documentation of every repair and saving the shop and the insurance company time when it comes to negotiating over the phone. In the end, Menefee has grown the shop’s annual revenue from $375,000 since taking it over in 2015 to its current $1.3 million per year. 42 fenderbender.com | February 2019

AVERAGE MONTHLY CAR COUNT:

ANNUAL REVENUE:

$1.3 MILLION

The Starting Point

Make Your Mark

Pronto Body Shop has earned a reputation in the community for being customer-friendly, from its modern facility to its caring staff.

When Menefee took over her shop in El Paso, she knew it was time to observe what goes on behind the scenes. Since then, she has been able to glean knowledge from being a shop owner and her experience being an insurance agent to work on creating a solid relationship with insurance companies in her market. “We’re on the border of two cities and adjusters will actually argue over who gets to visit our shop in person,” she says. Menefee advises all owners and agents to take required training seriously. Menefee herself has been through I-CAR training and other manufacturer training sessions, featuring both handsoff and hands-on training. “Actually being in the shop and hands on, and having the technicians explain why he or she took off a part or did something, makes a difference,” she says. Menefee took hours at the beginning of being an owner to spend time observing the technicians’ daily routines. Her background in insurance generally involved mechanics, she says, so she was largely unfamiliar with the day-to-day elements of collision repair.

The Consistent Setup

Menefee got started in her role as owner by training an existing estimator on insurance adjusting and training a new hire to do the same. After training each of them, she sent them to take a test for the state’s license for adjusters. Three estimators have licenses at the shop. Menefee and her estimators take time to walk the floor and check on processes. One aspect of establishing a good rapport is to know what goes on in the repair process and troubleshoot, if necessary. Menefee’s team is able to walk around often to do so because the facility is relatively small, at 7,500 square feet. The other key ingredient to the relationship is to be honest. Say a technician was sick and the repair was delayed a day. In that case, Menefee says the manager needs to apologize and tell the truth to the adjuster. “Just own up to it,” she suggests. “If you’re going to pay one day of a car rental out of pocket, then that goodwill will go a long way with the adjuster.” Once the door is open, the next step is to work on the shop’s documentation process, Menefee says. February 2019 | fenderbender.com 43

PROFILE

A THRIVING INSURANCE RELATIONSHIP

Know Your Role

Tiffany Menefee spends her days as a body shop owner acting as an intermediary between customers, her staff and insurance agents.

Insurance agents and adjusters tend to be numbers-oriented. They like to have paperwork, she says. So, when an issue, like a delayed part, does arise, the reason behind the repair being delayed does not necessarily correlate to the insurance person, who still views the situation in terms of money. If that is the case and the delay is not the shop’s fault, then Menefee says it is time to pull out the correct documentation to show the company. “A lot of the time we ordered a part and had to send it back because it was damaged,” she says. “So, if that’s the case then the team needs documentation to prove it happened.” Documents that need to be provided to the insurance company include invoices and pictures of the repair. To take the process a step further and make it easier for the adjuster, Menefee will label the pictures of damaged parts 44 fenderbender.com | February 2019

with the part name and the parts number so that adjusters no longer need to sort through more than 30 photos to find the picture. Pictures of parts are always labeled and then downloaded to the shop’s Dropbox, Menefee says.

The Goodwill Formed

Menefee will take time to go even one more step further and have her team mark the car up with a marker before the adjuster arrives. The team takes markers and labels the parts that are damaged and separate them from the rest. The proess of marking the damaged car helps the adjuster to quickly see areas where scratches or dents might not have been visible to the naked eye at first glance. “No adjuster wants to come out and see everything lying around,” she says. By being consistent and following

through with proper documentation as much as possible, if there are occasional times in which a photo is missing, there is already established goodwill between the owner and adjuster. The beneficence continues to go a long way for her shop. Menefee recalls a time where she was discussing repair hours with an insurance adjuster and she requested 10 hours. The adjuster eventually came back and said, “Hey, my boss can’t give you 10 hours so the most I can give is eight hours. But, I can give you an extra two hours on this other section instead of that one to make up for it.” Often, the insurance agents won’t visit Pronto Body Shop for larger hits because they trust Menefee to send the correct invoices and photos. They reassure her that she doesn’t have to call them and get them back into the shop when there are supplements, she says.

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Offer Options At Friendly Chevrolet in Dallas, offering an online pay option has increased customer satisfaction.

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February 2019 | fenderbender.com 47

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STR ATEGY

IDEA SHOP

agent referred them or if they saw an advertisement online or via social media. Tip: Start keeping a record or survey of how each customer heard about the business before entering the shop.

Incorporating Savvy Marketing

The Risk Behind Marketing

Marketing can be a dicey venture that needs to be handled carefully Ask Bob Coleman what he wished he knew about body shops before starting his marketing company and he doesn’t hesitate: “I wish I knew some body shop owners didn’t ever think about marketing,” he says. “I guess it would have made it easier going into it,” he adds. “Now, I have to educate them on marketing.” The problem that often occurs, Coleman, the owner of RC Marketing LLC, says, is that there’s a lack of body shop owners actually marketing their own business. According to the FenderBender 2018 Industry Survey, just shy of 50 percent of respondents had updated a shop website within the last year. And, only 21.9 percent of respondents promoted the shop on social media daily. Coleman, who is aware of business changes and how long it takes to build a business in the industry, began his marketing career at Hertz, worked his way up to a manager position, and then moved onto working for CARSTAR locations in New Jersey. While most of Coleman’s marketing consulting is done for New Jersey body shops, he says there are keys to marketing that each owner or manager can use to start marketing right now. “Most marketing successes do not happen by accident,” he says. “This is the most important part of the business because it brings people in the door.” AS TOLD TO MELISSA STEINKEN

THINKSTOCK

Understanding Customer Expectations

Some people are completely oblivious to marketing and that’s fine. I would prefer if people tried a marketing endeavor even if it fails. Then, I can go in and help customize their individual business needs in terms of social media and whether they want me to represent the shop at community events. I’ve become sort of an alternative for people that want a marketing representative but don’t want to spend a full salary on one. While I like doing this, I’d rather focus my marketing techniques in that way.

Tip: Try marketing the shop through social media platforms and customize the message to the shop’s culture and values.

Tracking the Customer

I wish shop owners knew how important it is to constantly keep track of how the customer has heard about the business. The most important marketing information for a shop comes from knowing what got the customer to walk through the door. These shop owners should know what percentage of business these customers are, and whether an insurance

It’s vital for shop owners to put compelling content across multiple social media channels. Most that I have helped either do not do it or do it haphazardly. You need to monitor the reviews the shop gains on Google, Facebook and Yelp. And, the content that is being pushed out across the channels needs to be up to date with industry trends. Tip: For example, you should keep tabs on what type of technology is in the vehicle to repair and advertise that new technology. Autonomous cars are becoming more popular so marketing that new technology could be beneficial.

Remembering to Follow SEO

There are a lot of variables to a successful marketing campaign. I come in and I take a look at their in-person marketing presentations and customer demographics. Important factors for improving search engine optimization include how many dealerships or fleets the store partners with, how many direct repair relationships the shop has and which other shops are in the area. Tip: Visit dealerships and insurance agents monthly to start to build a relationship and later on, have the sources send you some of this information. It could take a year or two for an agent to start trusting a shop, so it’s key to act fast.

Perfecting the Website

It saves time if an owner can go and make sure all the website pages look uniform, and have a consistent message and logo. Promote that you’re a trustworthy part of the community. Put your compelling talent across those channels. Tell others about events the shop has in the community. Tip: Remember, above all, to make the website read like it would be a story in a magazine. Otherwise, most people don’t think about auto body shops often. February 2019 | fenderbender.com 49

STR ATEGY

CUSTOMER SERVICE

The One-Minute Sell Find out how to better communicate with customers by your body language

BY MELISSA STEINKEN

Nick Morgan had to relearn how to process body language

“naturally” when he was 17 and fractured his skull in a tobogganing accident. He was in a coma for a week and when he woke up, Morgan was unable to process body cues the way people normally do, he explains. It took him a year of studying people around him to retrain on interpreting body language cues. These days, part of Morgan’s daily work requires him to study body language. And, for collision-repair businesses, body language done the right way or the wrong way can make or break a sale, he notes. At the end of the day, those subconscious movements and actions can instill trust in the customer or damage a potential insurance company relationship. Morgan, founder of Public Words, a consulting company, says that in every story, there are two conversations: the content and the body language. The body language will always win in telling the true story, especially in interactions with shop customers. For example, if a person says he or she believes in the story they are telling but looks nervous and uncertain, then the other person will only believe the storyteller is uncertain. Laura Dudley, program director of applied behavioral analysis programs for Northeastern University, agrees with Morgan in that when someone is “open” in a conversation, the other person does not find the person aversive. Dudley has been working in applied behavioral analysis for over 20 years and says “knee-jerk” reactions to body language can impact customer service. Customers can interpret body language as a subconscious message to them. It is important to leave the previous call or client behind and make the next meeting about the next meeting, which can all be achieved as quickly as one minute.

50 fenderbender.com | February 2019

1. THE WAY YOU ACT In customer service, the customer will look for warmth of expression and positive effect, Morgan says. Positive effect can be conveyed through smiling and nodding, and attention to other people. It is hard to be positive in customer service when someone has been in conversations with people that are upset all day, Dudley says. “As a result, you might find yourself anticipating conversations, which could lead to you greeting or responding to others in a way that comes off as unwelcoming,” she says. Morgan recommends orienting your body toward the person but to make sure to not get too close.

2. THE WAY YOU HOLD EYE CONTACT

Dudley says signs of an angry person include furrowing brows and shaking the head back and forth. A more pleasant conversation will include more eye contact and smiling. After establishing an open body posture, the next step is to make eye contact with the person, Morgan says. “But not fixed staring,” he says. “It’s normal to look at someone for three to five seconds and then to look away.”

3. THE WAY YOU TALK “Some innocuous thing, like a song, a person, a smell, can begin to elicit strong feelings and emotions due to past experiences,” Dudley says. A person may be trying to empathize with the customer by saying, “It sounds like this is very upsetting,” but this phrase could be

misinterpreted as patronizing or accusatory by the customer who then develops feelings of anger, she says. Morgan says to stop using nasal voices or phrases. Resonant vocal tones indicate positive effect better.

4. THE WAY YOU HOLD YOUR ARMS The second part that people will notice when talking to a customer service representative is the person’s arms and hands, Morgan says. Morgan recommends opening up your arms and hands to the other person.

5. THE WAY YOU MOVE Fidgeting is a definite sign of nervousness, Morgan says. Nervousness, in turn, can be interpreted as a sign of lack of confidence. A person needs to stop twitching and stand as still as possible. “We look to body language to understand someone’s intent, something we are closely attuned to,” Morgan says. “That’s how we can tell someone is joking, for instance, when they say, ‘Your hair is on fire!’”

6. THE WAY YOU STAND Morgan says that if a person doesn’t stand up straight, then he or she can appear withdrawn, weak or unhappy. So, the first step to communicate open-mindedness is to stand up straight, he says. To practice fixing posture, Morgan says to find a wall and stand with one’s back to it. Then, the person should place his or her heel, backside, shoulders and back of the head against the wall. The process will mimic what it feels like to stand up straight. February 2019 | fenderbender.com 51

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COLUMNS

PROCESS DRIVEN R YA N C R O P P E R

Handling a Crisis at Work

Any collision repair business can survive a natural disaster— provided employees show ample support for each other

FUE VANG

By now you’ve probably heard about

the 7.0 earthquake my town, Anchorage, Alaska, endured back on Friday, Nov. 30. It made for a crazy, crazy week. This thing hit me like a freight train. It happened at 8:30 in the morning, and by about 9:15 we had shut all three of our Anchorage-area facilities down. The biggest reason why we shut them down was so that our employees could go home and check on their families and houses. The whole town was in a pretty decent amount of chaos; roads were completely demolished. I mean, people’s houses looked like burglars came through and opened every cabinet and just threw everything on the ground. It was pretty crazy. I communicated with the staff by email over the weekend because that’s the only way I could reach them. So the whole staff came in on the next Monday and we had a meeting right away. I said, “OK, an engineer came in and condemned our main building.” I knew that, if I had to vacate this building, I had to put every employee somewhere, and I just don’t have enough space at my other two locations to place 40 people. So I told my staff, “Engineers and contractors are saying we might need to vacate this main location. But my maintenance guy and I don’t agree with them. So, here’s what we’re going to do: we’re going to take a vote, and this is going to be at your own risk; if you don’t feel safe here, I will relocate you. But I want to vote on if you’d like to stay here and keep working.” We voted and, unanimously, everyone said, “We want to stay and work.” The buyin from our staff was very important—to

have them believing in our plan. You had a team come together, which was very impressive. We had no idea if the building was going to come down, and, meanwhile, I ended up getting extremely sick throughout the process. My head was spinning, like, “What am I going to do here?” All week, my staff knew I was sick and everyone kept asking me what I needed. They ended up checking me into the hospital. I had a 104-degree temperature and I had no energy that whole week. Now I’ve steadily gotten better. But that ordeal really opened my eyes; it left me asking myself: “What would happen if I couldn’t come in to work tomorrow?” I wondered, if I were in the hospital for weeks, who’s going to do what I do every day? That whole experience really opened my eyes that I have to have backup plans in everything I do. And now I’m making lists, noting all the tasks I do each day, so I can leave that with my staff in case an emergency pulls me

away from the shop for an extended period. Fortunately, on our staff, we have some employees that are very capable, and I had no choice but to lean on them hard this time around because I couldn’t be everywhere, all the time. But, by the next week, my shop leaders and I kind of divided and conquered, and used people’s skillset to help any employee with anything that was needed. We divided and conquered and ended up getting everything done that needed to be done. The aftermath of this natural disaster that our staff dealt with—and the way we handled it —really showed that we’ve invested a lot into our business culture, to develop a solid group that we can all lean on. It was very comforting to know that it wasn’t just 80 people all out for themselves. That was really cool to see. It really shined through during this time, and I can tell you, without a shadow of a doubt, if I had to shut our main building down, our team would’ve pulled together in a way that would’ve blown my mind.

RYA N C R O P P E R is the owner of Able Body Shop, with three locations in Anchorage, Alaska, and Total Truck Accessory Center.

E M A I L : r c r o p p e r @ ab l e b o d y s h o p .c o m

February 2019 | fenderbender.com 53

STR ATEGY

CASE STUDY

Making electronic payment options available can improve CSI

OFFERING ONL

I N E P AY M E N T S BY MELISSA STEINKEN PHOTOG R A PH Y BY JOH A N SA LVA DOR

February 2019 | fenderbender.com 55

STR ATEGY

CASE STUDY

Collision repair customers at Friendly Chevrolet in Dallas were starting to get irritated with how long the lines were to pick up vehicles. Then, faced with the option of handing over credit card information through the phone, customers had to decide whether they wanted the ease of payment that came with questions over whether the information was secure or not. For Brent Pound, collision center director at the Dallas dealership, he knew he needed to find a new solution. One type of service that’s becoming more common is offering an online payment form—which is an alternative method of payment for customers who want to pay outside the store but worry about things such as security measures—to customers. Pound, who has been the collision repair center director for more than a decade, says electronic payment not only has benefits for the shop’s customers, but also helps with streamlining the overall repair process. Pound soon found offering additional ways to serve customers helped the shop grow at a steady pace and retain an annual revenue of $6 million.

FRIENDLY CHEVROLET LOCATION:

DALLAS

OWNER:

MARK EDDINS (DEALER PRINCIPAL) SIZE:

25,000 SQUARE FEET STAFF:

20 (FIVE STAFF IN THE FRONT OFFICE) AVERAGE MONTHLY CAR COUNT:

150-170

ANNUAL REVENUE:

$6 MILLION 56 fenderbender.com | February 2019

The Backstory

Pound was introduced to the automotive industry in the same way he was introduced to online payment options: “weaseled” into it by a friend. He began his career as an estimator after a friend showed him the job was available. He then worked his way to an assistant manager position and manager at an independent body shop. In 2008, he took over as the collision center director for Friendly Chevrolet in Dallas. When he first started at the shop the facility was not producing enough revenue, had a high turnover rate and outdated equipment.

EXPERT ADVICE

USE CONVENIENT PAY AS A TOOL

Digital Demand By offering an electronic payment option, Friendly Chevrolet has been able to eliminate back-ups in the vehicle delivery process and increase CSI.

MAKE THE INTER ACTION E ASIER FOR A CUSTOMER SIMPLY BY OFFERING HIM OR HER ANOTHER WAY TO PAY FOR THE REPAIR Tony Passwater, founder of QuickBooks R Us, is a firm believer that the more options for customers the better. “There is nothing stopping shops from telling existing customers they have several options to pay, including e-pay,” he says. Managers should market this on multiple platforms, he says, including social media and the shop’s website and any advertisements in the community. Passwater says that while offering customers another pay option is a benefit to a collision repair shop because it offers convenience, he says shop owners can improve the process by researching the options available. And, he says the process is relatively simple to set up as a customer service. The shop creates a subdomain, which is a website page that has a link on the company’s main page, and the link takes the person to the second page which features another category. The page should include text greeting the customer and asking how they’d like to pay. The customer should have the option to input an invoice account number and a method of payment, like a credit card.

“Frankly, it was in pretty rough shape,” he says. Since that time, through meetings with other managers in the company and improved processes, Pound was able to increase sales by 150 percent.

The Problem

The body shop was starting to witness some back-ups in the process of getting cars out to customers after the repair, Pound says. After a few years of working for the dealership, he noticed that customers usually came to pick up their vehicle after 5 p.m., when the workday was over. Since

this became a popular time for customers to enter the shop, the customers would have to wait in lines at the different credit card payment machines, he says. Pound says he soon realized that not only were customers becoming agitated by the long wait times, but the process for vehicle repairs was also affected. Those 10–15 minutes of wait time made more of a difference than he anticipated. “If you have 12 different people trying to pay at once, the staff can get quickly bogged down,” he says. The body shop has five people who work in the front office and five pay stations accordingly.

The Solution

Seven years ago, the managers from each department in the dealership met at one of their monthly meetings to discuss how the processes could become more streamlined. Out of that meeting and a simple brainstorm session, the managers formed the idea to utilize another payment option for customers, Pound says. They decided to hire someone inhouse because it was the easiest route, he says. The managers asked their inhouse marketing person, who also had experience in web design, to create the new section on the website. The in-house February 2019 | fenderbender.com 57

STR ATEGY

CASE STUDY

hire was already creating ad campaigns through platforms like Google Ads for the dealership. So, the in-house hire set up an extra tab on the dealership’s website in which a customer could click into and pay for a repair online. The form works for other types of dealership services as well, Pound says. The process took several weeks to establish, Pound says. Once it was finished, the managers met once more and went over new features on the site to make sure everything was in working order. At the time, the page was set up as a convenience factor for the customers and the managers simply did not think of marketing it as a separate campaign. While the body shop does not advertise the service to customers, Pound says that now when a customer comes in and would like to process a payment online, he can offer them that option to skip a longer wait.

The Aftermath

Pound says that it is a low percentage of customers that decide to take the e-pay route, but now the shop has a cycle time of 6.5 days. Within the last three years, the shop was able to expand into a total of 25,000 square feet to keep up with the average monthly car count of roughly 150. Pound has also noticed an increase in customers that are parents of college students, who are having vehicles repaired. Often, the parents will simply pay online for the repair or pay the deductible for the student.

The Takeaway

As e-pay increases in popularity, Pound says he has noticed an increase in customer trust for keeping information more secure than it would be over the phone and, in general, an increased interest in the option. The average monthly payment is roughly $10,000 for processing credit cards in store, he says. In comparison with the online option, the monthly fees associated with offering an online form of payment for the customer are not excessive. “More recently, in the past few years, costs associated with bank fees have increased and gotten very costly,” he says. 58 fenderbender.com | February 2019

Adapt and Grow In addition to offering e-pay, Friendly Chevrolet has expanded to a total of 25,000 square feet to keep up with its average monthly car count of 150.

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February 2019 | fenderbender.com 59

STR ATEGY

LEADERSHIP

Overcoming Annoying Employees Three keys for managing employees with whom you don’t relate well B Y K E L LY B E AT O N

of employees who are, as he phrases it, “humble, hungry, and smart.” Park, a former MSO owner and executive with ABRA Auto Body & Glass, has always appreciated employees that embrace his business’s core values, like technicians who consistently push themselves to take extra training courses. Yet, he has learned over the years that not every employee will share all of his values. “If somebody’s outside of those values, we try to understand that person,” says Park, who currently serves as the CEO of Axiom Accident and Hail Repair in rural Denver. We examine “is there a conflict somewhere that we have to resolve? Is this just a temporary departure, because that does happen and we all have bad days and circumstances in life kick in. “However, if there’s an underlying personality conflict … if you’re persistently being annoyed [as a shop leader] then somebody’s out of kilter somewhere.” It’s a complex problem, he says, and it’s one that virtually every shop operator will encounter at some point: essentially, how to deal with an employee that rubs you the wrong way. Perhaps the employee shares drastically different political views than you … and reminds you of that fact often. Or, maybe an employee speaks to you in a fairly dismissive fashion during meetings. While an employee might irk a shop leader, not every collision repair business can afford to simply part ways with every staff member that annoys certain co-workers. In many cases, these occasionally frustrating employees are too productive on the shop floor to give up on. And, sometimes an employee simply has a basic habit, like tending to interrupt conversations, that would annoy some coworkers more than others. “Owners shouldn’t be looking for reasons to fire someone,” Park says. “Who’s being annoyed? Is it a one-on-one situation with the owner, or manager, or is the annoyance affecting more people? 60 fenderbender.com | February 2019

THINKSTOCK

Bill Park strives to assemble staffs full

… By not bringing the issue to the forefront, the owner or manager would be doing their employees a disservice—the real insult is not addressing the issue in a proactive manner.” That begs an overarching question: How can shop owners make things work with an employee with whom they don’t relate well? Park offers several solutions below.

Tweak Your Interview Process.

If you frequently find yourself with employees that grate on some of their coworkers, it might be time to overhaul your facility’s interview process. Because, in doing so, personality traits that don’t align with your company culture are likely to present themselves. Nowadays, when Park interviews job prospects, he doesn’t spend much time asking them what they view their strengths to be. Instead, he asks questions that help reveal a prospective hire’s personality. That way, Park can gauge whether or not the prospect is likely to fit in with his existing staff. “You need to be honest with people, beginning with when you hire them,” Park says, “and set those expectations. Say, ‘this is us as a company; if, at some point, you’re not aligned with our core values and following these, you won’t work here any longer.’ “We ask them to respond to core value questions and how they relate to them in their daily lives—I don’t even talk about the job; I just talk in general, [noting] how a person communicates, and then talk about their answers a little bit. They’re going to open up from there, and say, ‘Well, this is how I seek to understand,’ you know?”

Clarify Your ‘Non-negotiables.’

Early in employees’ tenure with Axiom Accident and Hail Repair, Park makes sure to clarify what are, in essence, his non-negotiables—in other words, what issues will lead to an employee’s dismissal if they persist at length. Some examples might be speaking in an occasionally unprofessional tone with superiors, or consistently being late to meetings. By clarifying any behaviors that are

deemed unacceptable—and by documenting conversations along those lines, and having an employee sign and date such documentation—shop owners protect themselves from any potential wrongful termination threats down the line. By clearly stating your business’s non-negotiables, it can help a shop owner avoid being stuck with a poor staff fit. “It doesn’t mean that they’re not a good technician, or a good estimator, necessarily,” Park says, “but I think you’re causing a lot of problems by not addressing the personnel side of human behavior.”

Attempt Conflict Resolution.

Occasionally, Park notes, a shop owner can have a manager pull an employee aside and iron out a persisting issue. After all, sometimes calling upon a colleague— and attempting to view an issue from another perspective—helps get to the root of a problem. And, Park encourages owners to make multiple attempts at conflict resolution. Some shop owners spend part of a workday toiling alongside employees they’ve had conflicts with, in an attempt to see things from the staffer’s perspective. Occasionally, that can open an owner’s eyes to an issue of which they weren’t previously aware. “You have to have intensity, [showing] that you’re really engaged,” Park says. “You can’t have someone clock in and then you don’t see them for a week.” But, at some point, Park says, it may be time to sever ties with an employee if the worker has overstepped the boundaries of what’s deemed acceptable behavior. “We pull people together, we have a discussion—you address it and ask questions to seek and understand where [the problem] is coming from,” Park says. “And if we can’t resolve it then somebody’s going to leave. That’s just the way it is. “You either fit or you don’t fit at some point. And that’s not [always] a bad thing. That’s when you’ve just got to tell people, ‘Look, this just isn’t working—if you’re not happy, why are you here? You’re a great tech, but it’s just not a good fit; there’s too much conflict everyday. And let’s help you find a better fit.’” February 2019 | fenderbender.com 61

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62 fenderbender.com | February 2019

COLUMNS

IN THE TRENCHES STEVE MORRIS

The ADAS Threat

ADAS will have an effect on the industry—but not for the reason you may think

NICK SPAETH, THINKSTOCK

In recent columns, we’ve explored some

of the predictions that are swirling around the collision repair industry. You can go back and look at the previous columns to see my opinion of these predictions but, suffice to say, I don’t think these predictions are going to have short-term negative effects on our industry. Another prediction I’ve heard often recently is that the proliferation of advanced driver-assist systems (ADAS) will drastically reduce the number of collisions each year to the point that nearly all body shops are going to shut their doors. The predictions revolving around ADAS cause me concern but not for the reasons you might think. Current ADAS technology can detect objects, do simple classification of objects, alert drivers to road hazards or out of norm directional issues, as well as slow or stop a vehicle. All of this is great for applications like lane-keep assist, blind spot monitoring, advanced cruise control, parallel parking a vehicle hands free of driver control, and forward collision warning. Engineers and software designers at companies like Bosch and Nvidia are making wonderful progress on even more ADAS capabilities, such as discerning pedestrians in crosswalks; road sign and speed limit sign detection systems that automatically reduce vehicle speed; systems that know the difference between a parked car and one that is about to pull into traffic, etc. All of this is very cool, but I think we are many years away from this technology becoming prevalent enough to eliminate accidents and, as a result, the collision repair business. However, I do believe that we may see the rapid disappearance of a significant number of members of the collision repair industry because they are not informed well enough nor equipped to properly repair vehicles that have even the most rudimentary ADAS features. I am concerned that some of these shops will disappear because they are sued out of existence for substandard and/or incomplete repairs related to ADAS. I’m also concerned that the failure to

properly address ADAS resets and calibrations is going to cause accidents and injure customers. I’m worried that there is a sort of “head-in-the-sand” mentality on this topic shared by both the collision repair industry and the insurance company community. Let me share some of the reasons for my concerns. Back in December 2013, I organized a mini symposium for insurance claims adjusters and supervisors on the topic of ADAS. My hope was that, by explaining what some of these systems were and how crazy expensive they were to replace and calibrate, we could reduce the friction that my team experienced every time we addressed ADAS on our repair estimates. I thought that a little education would go a long way toward inspiring my colleagues on the insurance side to prepare for the increased labor and parts costs they encounter on future repairs. I guess I should have known better but, being the eternal optimistic-realist, I was still dismayed at the reactions I received from the symposium. For one, I thought my presentation was fantastic, but, obviously, my teaching skills were terrible because nobody in the audience “got it” based on their questions afterward. They asked, “Can you tell me again why you have to calibrate the steering angle sensor in addition to doing a fourwheel alignment?” And this was after I showed video from the IIHS of an SUV with electronic vehicle stability control recovering from an oversteer condition when the SAS was properly calibrated, and video of the same vehicle rolling over during an oversteer event when the SAS was not reset after an alignment. Then, some of them asked, “Why is it that you’re the only one that is charging for these operations?” That is what really got me concerned. I mean I’ve been told many times, “Steve, you’re the only one” but, this time, I decided to do a little research about this necessary, rudimentary and basic operation of steering angle resets.

So, since a lot of body shops sublet their alignments, I decided to call around to various independent alignment shops to ask them about resets. After calling a dozen alignment shops, I was dismayed to find out that only one shop knew of the need to calibrate the SAS on vehicles built since 2012. A few days after I did this informal survey, I was at one of our shops and I encountered an insurance appraiser that attended my mini-symposium. He was inspecting a Honda vehicle that needed a four-wheel alignment as part of the repairs and we were asking to be paid for the steering angle sensor reset operation. This appraiser told me that he had called the local Honda service department to inquire about SAS resets and was told there were no procedures from Honda. Wow, what a blow to my credibility. I was in possession of service documents from Honda that stipulate the need to recalibrate the SAS, yet the local dealer was contradicting what I knew to be correct. Fast forward to 2019. Still, to this day, I am daunted by the ignorance in our industry of ADAS and the relevant procedures required when working on and around these systems. This is what I meant when I said that the reduction of accidents due to ADAS won’t be the death of the industry, but the existence of ADAS and the industry’s inability or unwillingness to deal with ADAS is going to be the tipping point for the demise of many shops near term.

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 : s t ev e m @ p r i d e au t o b o d y.c o m 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

February 2019 | fenderbender.com 63

SHOP TA L K

“I’M CONSUMERCENTRIC AND SPEND MOST OF MY DAY INTERACTING WITH PEOPLE IN THE OFFICE OR ON FACEBOOK.” PHOTOGRAPHY BY MICHAEL HOBBY

64 fenderbender.com | February 2019

ROBERT GRIEVE OWNER NYLUND’S COLLISION CENTER ENGLEWOOD, COLO.

Customer Centric Nylund’s Collision Center owner Robert Grieve treats each person that walks through the door as a valued guest and spends most of his day interacting with them in one way or another.

February 2019 | fenderbender.com 65

SHOP TALK

ROBERT GRIEVE

STEPPING INTO NYLUND’S COLLISION CENTER IN ENGLEWOOD, COLO., A CUSTOMER IS TREATED AS IF HE OR SHE STEPPED INTO A FRIEND’S HOME. For shop owner Robert Grieve, each person that walks in is a guest and will be treated as such, he says. Grieve has taken this approach to business with such enthusiasm that now some of his customers—or “guests”—have even become friends, he says. “I’m consumer-centric and spend most of my day interacting with people in the office or on Facebook,” Grieve says. Grieve has set up his collision repair shop to run similar to a dealership, with a showroom of some of the repaired vehicles and two general managers, which allows him to spend most of his day focusing on the big picture aspects of the business. He bought Nylund’s Collision Center in 2006 and leased the location from the previous owner’s brother. Two years ago, Grieve and his wife purchased a different, roughly 20,000-square-foot building that seemed to better align with his old dream of owning his own dealership. Now, Grieve is almost always in the shop, even coming in every Saturday that it’s open—and he wouldn’t have it any other way. His days revolve around every detail that can make the shop better in the future and keep producing around $4 million in annual revenue. AS TOLD TO MELISSA STEINKEN

66 fenderbender.com | February 2019

All in a Day’s Work From managing the shop’s Facebook page to engaging with his staff, Robert Grieve spends his days brainstorming how to improve his business.

NYLUND’S COLLISION CENTER LOCATION:

ENGLEWOOD, COLO. OWNER:

ROBERT GRIEVE SIZE:

20,000 SQUARE FEET STAFF:

25 (7 BODY TECHS; 4 DETAILERS; 2 GMs; 2 REPAIR PLANNERS; 1 OFFICE MANAGER; 2 PAINTERS; 2 PAINT PREPPERS; 1 PARTS MANAGER; 1 OWNER; 1 BOOKEEPER) AVERAGE MONTHLY CAR COUNT:

AVERAGE REPAIR ORDER:

$4,941

ANNUAL REVENUE:

$4 MILLION

I get in around 8 a.m. every day and head up to my “eagle’s nest” office or down to the main office. We have a loft that is

suspended over the front area and I usually spend time working online up there. I don’t meet with my staff for production meetings or anything because my two general managers handle that. We have one general manager that handles the front office side of the business and another one that handles the shop floor and back end of the business. My team knows they can find me in my “eagle’s nest” and usually each person comes to find me if there’s an issue. I don’t ever schedule sit-down meetings. I’m the only one that can manage our Facebook page. I spend a good chunk of

my day on Facebook, putting up the marketing posts or replying to comments. Whenever I get a notification for another Facebook group I’m involved in, like the Collision Repair Technicians United, I might comment or at least click on it to check out what’s going on. My shop is mainly on Facebook. I do personally respond to any type of online customer reviews that come through. It’s easy to see when these are posted because we’ll get notifications through Google Analytics. Alerts will come into the email. And, everyone in my shop only uses one email so everyone can see what’s going on in terms of production and customer content. My staff comes from all over the country. I don’t typically post in the Collision

Repair Technicians United Facebook group but often when I comment or do post, technicians will reach out to me about job opportunities. This is mainly the way I hired and staffed my current February 2019 | fenderbender.com 67

SHOP TALK

ROBERT GRIEVE

Space to Dream The 20,000-square-foot building was purchased two years ago and has been set up to run similar to a dealership.

25 employees, 15 of which work on the body shop floor. When I’m not in an office, I am either greeting a customer or working on a post-repair inspection. I have basically

taken over all of the shop’s post-repair inspections to alleviate some of the work from my technicians. We get a lot of these customers and often it’s easier for me to handle them. We have people coming in when they’ve had their vehicle already repaired and something seems a little off or not running quite the same as it did before the accident. I take time to do the paperwork and walk with the customer around the car, doing an overall visual inspection. Then, I go over the next steps to fix the issue. Sometimes, I just need to sublet the work to a dealership. I have cultivated relationships with dealerships over time. I have a good relationship 68 fenderbender.com | February 2019

with a Lexus dealer in the area and now a Subaru dealer because a lot of technical issues have come from those types of vehicles. Roughly 65–70 percent of the work we do comes from our partnership with the local Lexus dealership. I found the dealerships through my parts vendor. Whenever we buy from a specific dealership, we make an appointment with the dealership with whom we’re already doing business. Now, these dealers have started to recommend customers to my shop. I want to not only make the customer feel like a guest in the shop but also want to offer them as much information as possible. I hired a staff writer who

helps write the blogs and other social media posts for our shop. We offer blogs on our website to give the customer as much information as possible. These blogs are posted each month based on something that happened that week or an experience a customer had that

made me realize other customers might need to know about this information. The blog topics have included how to talk with insurance adjusters, a new hire profile, photo estimates and anything technology related that’s relevant. We’re just now starting to expand our production board from one that’s old school to the new scheduling system we use. For

a long time, we have scheduled jobs according to a whiteboard and sticky notes. Now, we’re slowly integrating that old system with a new online scheduling system. I’m here almost all the time. The time of

the day that I leave varies and it could be 4 p.m., 5 p.m. or 6 p.m. before I’m heading out the door. Even when I’m gone, everyone has my cell phone number and I’m accessible all the time for the staff. We’ve built a brand and people want to be part of that brand so everything I do is because I try to do it better, and different, than everyone else.

February 2019 | fenderbender.com 69

20TH ANNIVERSARY SERIES

SHELLY BICKETT

The Anniversary Interview