FenderBender - January 2023

FENDERBENDER.COM / JANUARY 2023

LET THE SUNSHINE IN

PAG E 36

YOUR LEADERSHIP STYLE

PAG E 4 0

Strategies & Inspiration for Collision Repair Success

MANAGING EXPECTATIONS

PAG E 32

ORIGIN STORIES TRACING THE SPARK OF A LIFETIME LOVE OF COLLISION REPAIR P A G E 2 4

The Way In Some owners like Mark Probst came in with a love of working on cars, others found other things to love.

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CONTENTS

JANUARY 0 1 . 2 3

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V O L U M E

2 5

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N U M B E R

0 1

40

MATCHES MADE IN HEAVEN

OWNERS LOOK BACK ON THE MOMENT THEY FELL IN LOVE WITH COLLISION REPAIR.

BY TODD KORTEMEIER

FenderBender (USPS Permit 25614), (ISSN 1937-7150 print) is published monthly by Endeavor Business Media, LLC. 1233 Janesville Ave., Fort Atkinson, WI 53538. Periodical postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to FenderBender, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions.

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January 2023

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QUICK FIX

08

PAST THE PAGE Maaco at 50

09

DRIVERS SEAT

Looking back to look ahead

12

BREAKDOWN

Repairify hopes to change education

31

NUMBERS

Trends in training

18

20

LIGHT HITS

An owner’s court victory, and much more

20

SNAP SHOP A luxury experience

STRATEGY

32

COLUMNS

32

THE SOP

Managing customer expectations

34

EDUCATION+TRAINING Promoting education

36

CASE STUDY

One shop’s solar-powered journey

23

SHOP PROFITS

Chasing elusive margins

44

DUE PROCESS

A great place to be

BY DRE W B RYANT

BY G REG LOB S IG E R

43

COLLISION COURSE

Getting paid for more

BY TIFFANY ME NE FE E

38

ADAPT

An electrified SEMA

40

LEADERSHIP

The styles of leadership

January 2023

5

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CONTENTS

ONLINE EXTRAS

CL ICK ON THE L OGO BEL OW F OR PRODUC T INF ORMATION AUTEL

AutoZone

Polyvance

Auto Data Labels

Mitsubishi

SATA/Dan-Am Company

Auto Job Central

Nissan

Spanesi Americas

TechForce Foundation

JOIN NOW!

Unlock your full potential with the only social network 100% dedicated to working and future technicians. Use TechForce to connect with other techs, host events, access resources for your future, and more.

Careers & Scholarships January 2023

Competitions & Games

JOINTECHFORCE.ORG

Education & Training 6

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EDITORIAL

Matt Hudson Content Director Todd Kortemeier Editor Hanna Bubser Associate Editor Leah Marxhausen Special Projects Editor Lindsey Gainer Contributing Writer Tiffany Menefee Contributing Writer Drew Bryant Contributing Writer Kimanzi Constable Contributing Writer Greg Lobsiger Contributing Writer

EDITORIAL ADVISORY BOARD

Jordan Beshears Steve’s Auto Body Sheryl Driggers Universal Collision Greg Lobsiger Loren’s Body Shop John Magowan Ernie’s Auto Body Stan Medina Certified Collision Works

READ WHAT THE PROS READ

ART AND PRODUCTION

Zach Pate Creative Services Director Jonathan Ricketts Senior Art Director Mitch Bradford Art Director Morgan Glisczinski Graphic Designer Hana LeBrew Print Production Assistant

SALES

Chris Messer Vice President and Publisher 651.846.9462 / cmesser@endeavorb2b.com Andrew Johnson Associate Publisher 651.846.9459 / ajohnson@endeavorb2b.com Marianne Dyal Marketing Strategist (National Accounts) 706.344.1388 / mdyal@endeavorb2b.com Chad Hjellming Marketing Strategist (National Accounts) 651.846.9463 / chjellming@endeavorb2b.com Bob Marinez Marketing Strategist (National Accounts) 216.533.8747 / bmarinez@endeavorb2b.com Martha Severson Marketing Strategist (National Accounts) 651.846.9452 / mseverson@endeavorb2b.com Kyle Shaw Marketing Strategist (National Accounts) 651.846.8480 / kshaw@endeavorb2b.com Dan Thornton Marketing Strategist (National Accounts) 734.676.9135 / dthornton@endeavorb2b.com Sean Thornton Marketing Strategist (National Accounts) 269.449.0257 / sthornton@endeavorb2b.com Kenzie Verschoor Associate Marketing Strategist (National Accounts) 651.846.9472 / kverschoor@endeavorb2b.com Matt Harper Regional Sales Manager 651.846.9551 / mharper@endeavorb2b.com Melody Todd Senior Marketing Strategist (Regional Accounts) 651.846.9468 / mtodd@endeavorb2b.com Tim Hill Marketing Strategist (Regional Accounts) 651.846.9454 / thill@endeavorb2b.com Autumn Morey Customer Success Representative 651.846.9460 / amorey@endeavorb2b.com Jen George Client Service Specialist 651.846.9465 / jgeorge@endeavorb2b.com

FENDERBENDER

Mariah Straub General Manager and Production Manager Meghann Moore Bookkeeper and Client Service Specialist Tiffany Fowler Senior Digital Media Strategist Karley Betzler Administrative Assistant

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BACK IS SUE S

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Go to fenderbender.com/backissues

LET TE RS TO THE E DITOR

“The opportunity to read about ways to improve your business from credible owners and manufacturers is priceless.”

editor@fenderbender.com

ARTICLE RE PRINTS

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 Endeavor Business Media, and Endeavor Business Media does not accept responsibility for advertising content.

—Stan Medina, Owner, Certified Collision Works, Corpus Christi, Texas

T O S U B S C R I B E O R R E N E W AT FENDERBENDER.COM/SUBSCRIBE

January 2023

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VIDEOS

PA ST T H E PAGE

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PODCASTS

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WEBINARS

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NEWS

MAACO CELEBRATES GOLDEN ANNIVERSARY IN GOLDEN STATE J UST A FEW MILES FROM THE PACIFIC OCEA N, basking under San Diego sunshine in mid-November, it was hard for any franchisee attending the 2022 Maaco Convention to disagree with the event’s theme of, “Better. Than. Ever.”

Attendees and the Maaco leadership team alike also pointed to a future that looks so bright, you’ve got to wear shades.

“Our plan is to absolutely grow,” said SVP of Strategy and Franchise Administration Chris Porcelli. “This business has been around for 50 years because we have the ability to pivot, we’ve seen every type of recession challenge, whatever it is.

January 2023

And we’ve overcome that, because we have the ability to pivot that way.”

But in the midst of looking toward that bright future Maaco also wanted to honor the past at its first in-person convention in three years. There were old-school Maaco logos, commercials and jingles, a 70s-themed vendor show and a 1972 Camaro restored by a Maaco shop in Rock Hill, South Carolina, that was later raffled off to lucky Maaco franchisee Mike Phillips. The company also raised money for charity with a golf tournament and also presented its annual awards to franchisees.

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DRIVER’S SEAT

DREAMING IT ALL BACK UP AGAIN In this issue we look back at the moment collision repair became a career

THE COMING OF THE NEW YEAR is traditionally about looking forward. Maybe you’ve made some resolutions about things you want to do or do better. Maybe you’ve got new business goals or plans for improvements.

In this month’s feature story (p. 24), however, we’re going to take a look back.

You might say we’re going all the way back to the beginning, as we hear four shop owners recall the moment they fell in love with collision repair. But saying the beginning wouldn’t be totally accurate, as it wasn’t necessarily love at first sight for the industry veterans FenderBender spoke to.

Not every owner was drawn to cars from a young age or grew up working on them in the garage. Some were drawn to the industry but it took a little while to figure out what exactly it was that kept them coming back to the shop each day.

Even those owners who were all in from Day 1 probably experienced some growing pains that made them question if they were in the right place.

I think the new year is a good time to think about where you’ve been as well as where you’re going. I hope that reading about the sparks of inspiration these owners had will make you recall that moment in your own career. It might just help you remember where you want to go.

This month’s issue has tips for that as well. There are strategies for setting clear expectations with customers (p. 32), a

January 2023

story of how one operator used solar power to both modernize and improve his shop (p. 36) and how to identify your leadership style and what that means (p. 40). Thanks for reading, and for being passionate about what you do.

TODD KORTEMEIER

EDITOR

tkortemeier@endeavorb2b.com

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NEWS

Q U I C K

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IDEAS

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PEOPLE

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TRENDS

F I X

A NA LYSIS

THE PROOF IS IN THE PROCESS When it comes to training its students, the Repairify Institute aims to prioritize complete competency.

W H E N A C U S T O M E R R E T U R N S to a shop to pick up a repaired vehicle, the proof of a technician’s skill set is fully on display. A customer can tell if a job is not done well. Ensuring consistency and quality work is achievable with effective vetting and training, but results can vary.

GETTY

By HANNA BUBSER

January 2023

12

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QUICK FIX

Repairify’s new Repairify Institute aims to counteract some potential lapses in knowledge by offering a comprehensive educational avenue designed with service readiness in mind.

Industry veteran Chris Chesney is Repairify’s vice president of training and organizational development. Chesney is leading the Repairify Institute, which was announced at the 2022 SEMA Show in November.

“I am privileged to lead a team of amazing people who are bringing this program to life,” Chesney says. “The Repairify Institute is essentially the education umbrella that covers all the different deliverables from content development to content delivery, to mentoring programs to proof of skill concepts.”

Understand The Steps Chesney explains that the Repairify Institute is a comprehensive technical training program that will help find and establish quality technicians. This includes an adaptive learning content model that Chesney calls revolutionary.

Chesney says the Repairify Institute is currently active on an internal training level.

January 2023

The adaptive training content is currently being actively created for internal purposes, and he shares that customer-facing content will begin its rollout in early 2023.

“We write micro-objectives, very finely and described probes or questions that assess the student’s knowledge at the very beginning and all the way through the course with the goal of finding out what you already know and moving on,” Chesney says.

This adaptive model also allows the student to get the most out of the Institute.

Chesney explains that this is because time won’t be wasted on information that the student already knows. But if they don’t know something, that won’t be overlooked.

“When we do run into that area of a knowledge gap, we stop and we remediate it with content,” Chesney says.

He explains that this remediation could involve the student watching a video, reading a pertinent document or even completing a take-home assignment. The latter could involve the student practicing and performing the skill, and then taking a picture of something like a scan tool screen to prove it was completed. Then, they can submit it

14

for evaluation by the team, who will determine if that knowledge has been fulfilled accurately enough for the student to move to the next step.

Show What You Know Proof of skill is another key component of the Repairify Institute. Chesney says this step is valuable because it ensures the transfer of knowledge.

“We want to put them through the process of gaining the experience and then proving without supervision that they can perform that skill under stress, not knowing what they’re going to be asked to perform,” Chesney says.

This is a process that Chesney says doesn’t exist yet in this industry, which is why the Repairify Institute is attempting to bridge the gap.

“The proof of skill concept makes sure that the technician can actually tell us why they do what they’re doing [and] to define it and actually teach it,” Chesney says. “Also, to demonstrate in a lab in one of our Centers of Excellence, that they can perform that task under stress accurately and perfectly every time. If they can do that, then we

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GETTY

will provide them with a credential that identifies them as a technician who not only has the knowledge, but also has the practical skill set to be able to perform that skill without supervision, and [in] that shop owner’s shop with the customer’s vehicle every day in an accurate and safe manner.”

But before students can get to that point, they must go through the rest of the Institute’s process first.

“The entry into the Repairify Institute will more than likely start with online training and virtual training, and even some classroom training,” Chesney says.

Chesney explains that, for example, if the student were interested in ADAS target placement certification, they would go through e-learning, adaptive learning, virtual learning and even a live demonstration class.

“Then they’ll go back and get some practical experience and take a written exam,” Chesney says. “That written exam might be L4 from ASE or the I-CAR ADAS calibration certification. But once they’re comfortable with that practical experience, then they’ll be able to make an appointment at our facility to take an oral

January 2023

examination and if they pass that [then they] can take the practical examination.”

This is where the Repairify Institute Centers for Excellence come into play.

The first center is going to be in Richardson, Texas, near Dallas. It will accommodate students taking oral and practical examinations, and it is anticipated to open in late Q1 or early Q2 of 2023. “[Students] will be able to satisfy multiple certifications [and] multiple proof of skills that they desire during one visit,” Chesney says.

The Institute is planning for upwards of six other Centers of Excellence.

Chesney says putting multiple centers on the map will allow shops to identify a facility that is accessible to them to send their technicians to without needing to plan for expensive travel costs.

As for the Institute’s certification time commitment, Chesney explains that it depends on the skill being explored and the pace at which the student wants to engage with the process.

“A simple skill could be completed in a matter of a couple of months and a complex skill may take more than a year,” Chesney says.

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Watch The Model Work

The Repairify Institute seeks to establish what Chesney calls competent and conscious technicians by providing them with a resource that will ensure a thorough understanding of various skill sets. Chesney said Repairify sees the potential in this Institute model and in the long-term they are interested in working with the greater industry to make the largest impact possible.

“We want to model it, prove it and then scale it by partnering with the rest of the industry,” Chesney says.

The Repairify Institute model is something that Chesney believes will help shops provide quality work done by knowledgeable technicians who have been fully supported through adaptive learning, mentorship and all that the Institute has to offer. “[The goal is] to provide a resource for shop owners … [in] the industry as a whole, with an education program that can provide clear pathways to usable skills that they can put into action at the end of the day so that they have confidence that, by sending a student or a technician through this process, that they’ll get back somebody that can actually perform that skill,” Chesney says.

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QUICK FIX

NUMBERS

ON BOARD THE TRAIN ONE WAY TO SUMMARIZE how the numbers of collision repair today compare to four years ago is more—more revenue perhaps but also more expenses, more backlog, more parts delays and, well, more. Another number that stands out is more training. In looking back at the 2018 FenderBender Industry Survey compared to today’s results, shop employees are training more frequently as vehicles and repairs become more complicated.

Percent of overall survey respondents

2018

2022

35%

30% 25%

20% 15%

10% 5%

Never

Within the last five years

Annually

Quarterly

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LIGHT HITS

SHOP OWNER SELF-REPRESENTS IN COURT, BEATS STATE FARM

A collision repair shop owner in New Hampshire this fall represented himself in high court and won against State Farm.

According to Insurance Journal, Steve Piispanen chose to forgo a lawyer when he appealed a judge’s decision to dismiss a $1,093.37 claim against State Farm. He wrote a brief and appeared before the New Hampshire Supreme Court for oral arguments.

Piispanen owns Keene Auto Body, and his customer Caleb Meagher used his right to pursue a claim against State Farm, “after the insurer refused to pay the full amount that Piispanen said was necessary to repair the vehicle,” according to Insurance Journal.

Piispanen then filed a small claims complaint, but State Farm argued that Meagher’s policy states, “that any assignment of benefits is invalid unless State Farm approves the assignment,” according to Insurance Journal.

A local judge dismissed the claim but didn’t give an explanation as to why. Fast forward to Piispanen’s aforementioned self-representation at the New Hampshire Supreme Court, and after review of Meagher’s case, the court decided that the State Farm policy was, “ambiguous because the language did not specifically state that it applies to post-loss claims,” according to Insurance Journal.

Part of Piispanen’s self-representation included detailing parts that he said State Farm refused to pay for that were necessary to the vehicle’s repair. For example, he said State Farm wanted him to use a halogen headlight instead of an LED headlight from the OEM, which was more expensive.

BENDPAK UNVEILS LIFTS DESIGNED FOR NEXT GENERATION OF VEHICLES

Citing the unique lifting challenges presented by EVs, BendPak in November unveiled its AP Series of two-post lifts designed to lift the next generation of vehicles safer and more efficiently.

According to a press release, the AP Series tackles two primary challenges

January 2023

with lifting EVs: Their increased weight and sometimes hard to reach lift points dictated by the manufacturer. The new lifts feature more high-strength steel at critical points and have an all-new safety lock system. Also new are the lift arms and swing arm restraints. It all adds up to a durable and heavy-duty lift designed to handle today’s vehicles as well as those to come in the future.

“As the automotive industry evolves, BendPak continues to develop the innovative lifts and shop equipment our customers need to properly service new vehicles,” said Jeff Kritzer, BendPak president and CEO, via the press release.

“Lifting electric vehicles presents unique challenges because EVs tend to be heavier and have harder-to-reach lift points than traditional vehicles. We’ve reengineered our two-post lifts to meet these challenges.”

Among the features optimized for EVs are swing arms that have greater clearance under the vehicle and also more extension and retraction to reach those OEM-recommended lift points.

Swing arm restraints are designed to ensure a vehicle doesn’t shift as heavy components are removed. The lifts are also highly customizable to meet the needs of an individual shop.

“Two-post models are the most popular car lifts in the world,” Kritzer continued. “But just because something has been around a long time doesn’t mean it can’t be improved. We put more than 50 years of experience into reimagining the two-post lift to make it more efficient, safer and easier to use.

We’re really proud of the results and hope our customers love it, too.”

CRASH CHAMPIONS ACQUIRES HISTORIC BAY AREA SHOP

Crash Champions announced a November acquisition of Oakland, California, shop George V. Arth & Son, one of the oldest automotive repair shops in the United States, according to a press release.

Originally known as Oakland Carriage Manufactory, Arth & Son was founded nearly 150 years ago and is now on its

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fourth generation of ownership. The shop boasts I-CAR Gold Class certification.

Current owner Ron Arth is the greatgrandson of the shop’s founder and was proud of the shop’s legacy and its place within the Oakland community.

“Our family is incredibly proud of the shop’s longevity, as the ability of any small business to navigate significant industry change against the backdrop of multiple wars, pandemics and recessions is a testament to its resilience,” said Arth, via the press release. “While this ‘end-of-an-era’ milestone is somewhat bittersweet for our family, we feel fortunate to have found the shop and our customers a good home with Crash Champions.”

The acquisition saw Crash Champions close in on the century mark of locations in the Golden State.

Arth & Son became the 99th Crash Champions location in California and the organization has more than 580 locations across the U.S. “This is a marquee addition to our team,” said Matt Ebert, founder and CEO of Crash Champions, via the press release. “It is a remarkable achievement to remain in business for more than a century, and within moments of stepping inside the facility and meeting the team at George V. Arth & Son, you understand how they have managed to enjoy that kind of staying power. Their dedication to service excellence and high-quality vehicle repair shine through in every interaction, and I am thrilled that the Arth family has entrusted us to oversee the next chapter of this historic team’s story.”

ALLSTATE ANNOUNCES ASTECH AS PREFERRED PROVIDER

Allstate announced asTech as a preferred diagnostic scanning provider for its Good Hands Repair Network, according to a press release.

“We applaud Allstate for their commitment to driver safety and to helping their partner collision centers quickly restore the lives of those who have been involved in an automobile

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accident,” said Cris Hollingsworth, president of Repairify Holdings, Inc. “As our customers tell us every day, asTech helps collision centers improve workflow efficiency so that they can make good on their commitment to the safest possible repair in the least amount of time.”

This partnership will allow collision centers that participate in the Good Hands Repair Network to have preferred pricing for asTech devices. This includes the asTech menu diagnostic services as well, with remote OEM and OEM compatible diagnostic scanning and remote ADAS calibration and programming.

Users of asTech can have access to over 400 certified technicians by phone and mobile application.

WASHINGTON APPROVES FIX NETWORK APPRENTICESHIP PROGRAM

Fix Network World in November announced the approval of its Fix Network Apprenticeship Program in the state of Washington, according to a press release.

The program was approved at the quarterly meeting for the Washington State Apprenticeship and Training Council. This Registered Apprenticeship covers training at Speedy Glass centers in Washington and Oregon. FNAP will be the first Automotive Glass Apprenticeship of its kind in the United States, with a goal of “offering an effective and efficient pathway to certification in auto glass repair and replacement services,” according to the press release.

Apprentices will get 2,000 hours of paid on-the-job training with the help of a journeyperson. Topics that they will learn about include auto glass replacement, ADAS calibration, windshield repair process, safe glass installation practices, auto glass tools and technologies, troubleshooting and diagnostics and cost estimate preparation.

“The automotive glass industry in North America represents an incredible opportunity for individuals seeking a rewarding and long-lasting career,” said Steve Leal, president & CEO, Fix Network World. “As vehicles become more

January 2023

technologically complex, we will need trained and certified technicians who can provide quality repair services based on recognized safety standards. The Fix Network Apprenticeship Program aims to train technicians who can provide this elevated standard of care.”

In order to graduate from the program apprentices will need to pass the Certified Technician standardized test, specified by the Auto Glass Safety Council.

CALIBER ANNOUNCES STUDENT PILOT PROGRAM PARTNERSHIPS

The Caliber family of brands is highlighting its Technician Apprentice Program and partnering with two national nonprofits, according to a press release.

Caliber’s family of brands includes Caliber Collision, Caliber Auto Care and Caliber Auto Glass. Caliber is partnering with TechForce Foundation and Learning Undefeated with a focus on science, technology, engineering and math (STEM) education.

The collaboration includes a pilot program with hands-on experiences. It will introduce high school students located in Maryland and Texas to Caliber, the Technician Apprentice Program (TAP) and other collision repair career opportunities that utilize the latest technology.

The pilot program takes place from October through December with after-school and weekend events.

Students receive tours and one-on-one demonstrations through a collaboration of Caliber Collision centers and Learning Undefeated’s Mobile eXploration Lab. Students are also about to learn about TAP, engage with Caliber auto body technicians, and participate in car-related activities that include tasks such as timed assembly challenges.

“At Caliber, we are committed to inspiring all teammates to reach their full potential.

Through our Technician Apprentice Program, we are influencing the next generation of auto body techs and helping students achieve their goals, as well uncover career opportunities, which they may not have previously considered, within Caliber’s supportive culture,” said Caliber president and CEO Mark Sanders via the press release.

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“We are excited to leverage this partnership to expose even more students, teachers and parents to Caliber and TAP.”

I-CAR HONORS INDUSTRY LEADERS

At the 2022 SEMA Show, I-CAR recognized three individuals for their service to I-CAR and the inter-industry.

According to a press release, Jim Roach was presented with the I-CAR Chairman’s Award, which he accepted virtually. The Chairman’s Award is selected by the Executive Committee of the I-CAR Board of Directors. Roach is the former senior vice president of the American Honda Motor Company. He dedicated 35 years to the organization, and retired in 2014.

“Jim has not only been a collision repair champion for the inter-industry but has contributed sound insights that continue to guide I-CAR in advancing our vision: ensuring complete, safe, and quality repairs on behalf of the consumer,” said Kyle Thompson, immediate past chair of I-CAR’s BOD and assistant vice president, property and casualty, USAA. “Jim follows in the exceptional footsteps of other I-CAR Chairman’s Award winners who have brought deep passion, purpose, optimism and unique perspective that make our industry better and the driving public safer. It is my sincere pleasure to present him with this award.”

Thompson and Tim O’Day, president and CEO of Boyd Group Services, were both presented with I-CAR Founder’s Awards. The Founder’s Award is presented to I-CAR’s immediate past BOD chair, but this recognition was paused during COVID. O’Day was board chair from 2018-2020.

Thompson is the immediate past chair.

“The Founder’s Award represents a long legacy of unwavering commitment to upholding and advancing I-CAR’s vision and mission on behalf of our great inter-industry, and I can’t think of two more deserving individuals who personify this honor and commitment,” said Jim Guthrie, current I-CAR board chair and president, Car Crafters. “On behalf of I-CAR, we deeply appreciate both Tim’s and Kyle’s service to I-CAR and our industry.”

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QUICK FIX

1 SNAP SHOP

K&M COLLISION

By TODD KORTEMEIER Photos by TAI’S CAPTURE

L O C AT I O N :

HICKORY, NORTH CAROLINA

OWNER:

KEVIN & MEREDITH BRADSHAW

SIZE:

34,000-35,000 SQUARE FEET

S TA F F :

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IF THE BIG SIGN OUT FRONT AND THE

A V E R A G E M O N T H L Y C A R C O U N T:

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AV E R AG E R E PA I R O R D E R :

$12,000

ANNUAL REVENUE:

$11.5 MILLION

numerous drive-in service bays didn’t give it away and you managed to walk into the customer lounge of K & M Collision none the wiser, you might be forgiven thinking you were in the clubhouse of a private golf course or lobby of a swanky resort. With stone and wood surfaces and a fireplace with a nearby coffee bar, the K & M lobby helps make a pleasant experience out of the otherwise unpleasant experience of being in a collision. The shop’s clientele expect nothing less, explains Director of Fixed Operations Kyle Bradshaw.

“The biggest thing for us is we really wanted to mimic the dealership feel that customers get when they go to a dealership,” says Bradshaw, whose family owns the shop. “So you know, with us specializing in luxury vehicles, we want our customers to experience the same thing that they would experience at a Porsche dealer or a Bentley dealer or things like that.”

1. ALWAYS EXPANDING

Submit Your Shop Proud of your shop and want to show it off to your peers? Tell us about it at

SUBMISSIONS@10MISSIONS.COM.

January 2023

While the business was established in 1991, the current building dates to 2016 and has undergone significant alterations since then. It opened with just over 20,000 square feet and after a recent expansion is now nearly 35,000 square feet. The expansions have helped to not only process more vehicles but also improve

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2

efficiency and upgrade technology. The shop previously sublet out its alignments and calibrations but those are now in house, along with basic mechanical repairs such as mounting and balancing tires.

“Things like that, that we can just do in house and to basically speed the process up and not have to rely on anybody else for anything,” says Bradshaw.

The shop holds more than 20 certifications, from the aforementioned high-end makers as well as some of the most popular brands on the road today.

That represents a significant investment in equipment and training but is by design.

The shop maintains close relationships with dealers and OEMs as a symbol of quality for its repairs, says Bradshaw.

2. AN EXECUTED VISION

Bradshaw says that his parents, owners Kevin & Meredith Bradshaw, designed every aspect of the building for the customer experience. That experience, he says, is an extension of the priority the shop places on the customer, making sure they’re taken care of from the time they enter the shop to the time they receive “100% reimbursement” on their repair.

“Everything that we do, that’s really our focus and the focal point there is to provide an excellent service for the customer and an excellent experience,” Bradshaw says.

January 2023

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COLUMNS

SHOP PROFITS

Chasing a 20% (or More) True Net Profit Do we own a money printing machine or cash eating monster?

JOSIE SMITH PHOTOGRAPHY

In the past year, I have seen quite a few shop

owners’ profit and loss statements. A few have been surprisingly good, but most were not. Many are working so hard, but unfortunately keeping very little. There is a quote from Napoleon Hill’s timeless book, “Think and Grow Rich,” that states: “If you are one of those that think hard work and honesty alone will bring you riches, perish the thought, it’s not true!”

It’s funny how years ago I proved this quote to be very true, by working 80 hours per week for decades.

In my nearly 40 years in this business, I have never seen such a high demand for collision repair. At the time of this writing, my shop is booked out over three months, which is insanity, to say the least. Still, I would be careful saying, “This is the new norm.” We are at the top of the market cycle, and no one knows if this cycle will run for a few months or a few years. So, it’s a good time to hope for the best, but we really need to be getting prepared for the worst.

How do we prepare? We must start by saving six months of expenses.

Well, we need to back up the bus if that’s the case. If we are just making payroll, on C.O.D. with some vendors and just surviving, it’s very hard for any business owner to prepare for anything. So, why do more body shop owners struggle than not? The answer truly lies in who the body shop owner sees looking back at them in the mirror every morning.

The good book really says it the best, “Pride goes before destruction, a haughty spirit before a fall.”

What, then, is the answer to high profitability in a collision shop? The answer lies in a second quote from Hill’s book, “The way of success is the continuous pursuit of knowledge.” Our industry’s true net profit average is about 10%. True net profit means subtracting any of the owner’s compensation costs (cars, boats, cabins, phones, race cars, motorcycles or other tax write-offs) above wages and rent and putting that amount towards the net profit dollar amount or percentage. Do I feel 20% true net profit or dare I even mention 25% is available? With the right knowledge, it sure is!

Some of you reading this might be saying to yourself, “Greg, please be quiet, as some insurers might be reading this!” The insurance companies know more about body shop financials than most shop owners do. They’ve employed very highly

January 2023

educated folks from prestigious schools that have Ph.D.s in mathematics, statistics and economics.

Hello, the insurers are in daily contact with all the estimating platforms and our major vendors.

Owners must get this: we are small businesses operating in a huge financial arena with insurers.

With the right knowledge, we can be extremely successful entrepreneurs.

At just a starting point, a body shop owner’s profit and loss statement must be set up correctly.

Most of the P&L statements that were set up by an average CPA and not directed by a collision accounting professional can in some cases be worthless. It’s like driving in a heavy fog and not being sure if you are on the road. The owner has no idea what their cost of goods sold (COGS), labor gross profit, and overhead administrative costs even are. When your P&L has been set up correctly, it will almost speak to you. Twenty years ago, my P&L was barely one page long and my gross sales had just one line in it—gross sales.

After getting help to get mine set up correctly, my P&L is now almost eight pages long. My gross sales detailed accounts now include body labor, mechanical labor, frame labor, refinish labor, detail labor, aftermarket parts, OEM parts, recon-reman parts, LKQ-salvage parts, stock parts, paint and materials, hazmat, sublet mechanical, sublet towing, sublet storage and sublet total loss administrative fees. These are all just for the gross sales side. This doesn’t include all the same corresponding accounts for the COGS side or the pages of below-the-line overhead expense accounts. There are collision repair industry professionals out there who do this for shops (I am not one of them of course). Does it cost money? Of course it does, but the ROI will be returned to you 1,000-fold. The more the owner understands how to control the business’ finances, the more he can pay his employees!

One place to start for P&L help is by reaching out to your paint company. I am talking about employees inside the actual paint company itself above your local paint jobber. Most of them have Business Development Managers (BDMs) to help you. You can also reach out to me for direction, if necessary, see my contact information. In the coming months, I will be writing columns to help explain how to turn our business from a “cash eating monster” into a “money printing machine.”

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GREG LOBSIGER

Greg Lobsiger has owned Loren’s Body Shop in Bluffton, Indiana, for over 23 years. He has been a member of Mike Anderson’s groups for ten years and had extensive lean manufacturing training.

EMAIL:

greg@lorensbodyshop.com

ARCHIVE:

fenderbender.com/lobsiger

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TOPICAL

T R A C I N G

FOUR SHOP OWNERS LOOK BACK ON THE MOMENT(S) THEY FELL IN LOVE WITH COLLISION REPAIR.

January 2023

By TODD KORTEMEIER

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T H E

S P

A R K

O F

Photography By JOSIE SMITH PHOTO G R APHY, LOKE R PHOTO G R APHY, & ANNEMARIE HAMANT

January 2023

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T R ACI NG T H E SPA R K OF I NSPI R AT ION

ven for the shop owners who grew up in collision repair, it isn’t always a sure thing that they go on to choose that career for themselves. It is possible to be called to other things, even if looking back now it’s hard for them to imagine choosing anything else. Sometimes they’ve felt a higher calling.

Take Greg Lobsiger, owner of Loren’s Body Shop in Bluffton, Indiana. There was a time when Lobsiger, after trips with his church to Sierra Leone, pondered a future as a missionary. But Lobsiger says now he never truly felt a higher power calling him to take that path. He did feel a calling toward collision repair and his uncle’s shop where he worked nights and weekends throughout high school.

“I remember at 13, helping my uncle swap a frame out on a pickup truck,” Lobsiger says. “So it was just me. I mean, I just knew that’s what I wanted to do.”

But no matter how they came to the industry, one thing that all shop owners have in common is that there was something about collision repair that they fell in love with. It doesn’t have to be a fond childhood memory like Lobsiger, or even necessarily a singular moment of knowing. It might not even have a thing to do with cars.

Tom Bemiller will freely admit it.

He’s not a car guy. He didn’t grow up tinkering with car repairs. He started working in a shop when he was 14 just to get a summer job. And it wasn’t even his first choice. The body shop was just the first place that said yes.

Bemiller kept coming back to the shop after high school, working there during college summers and then after college as he figured out his next step after deciding not to go to medical school. That was when the shop owner, Dave, gave Bemiller a special project. Take a wrecked car around to some local competitors, see what their service was like, what they quoted. And as it happened, Bemiller had just been in an accident in his own car.

January 2023

FOR ME, IT’S NOT REALLY ABOUT FIXING THE CARS, IT’S MORE ABOUT FIXING THE WAY WE FIX CARS” —Tom Bemiller, CEO, Aureus Group

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Gearheads Not Necessary Shop owner Tom Bemiller (right) fell in love with collision repair even without a love of cars.

“That I would say was when I, quote unquote, fell in love with the industry,” says Bemiller, who is the CEO of the three-shop Aureus Group near Philadelphia. “And I wouldn’t actually call it love at that time. But it was really more about like, I just saw opportunity.”

Bemiller in his limited experience only knew how things were done at Dave’s shop. He didn’t know until he went around to these competitors that the employees weren’t always wearing nice, crisp uniforms. They weren’t always prompt to greet a customer as soon as they arrived.

The experience was just fine at some shops but the disparities at others were obvious. There were dirty offices, unfriendly employees and a total lack of communication and care. Even to someone with little experience in collision repair, it was clear that was no way to run a body shop.

“When I started visiting these other shops, it prompted me to just start doing some research on the industry like, all right, let me see what this industry is all about,” Bemiller says. “Because even though I had been in the body shop business since I was 14, I never spent any time learning about the industry or the business or anything, right?

It was 100% just making money, I’m going to be a doctor. And that’s the end of it.”

It turned out that it didn’t matter one bit if Bemiller cared about cars. He says

January 2023

he learned very quickly that wasn’t really what the industry was about. It was running a good, quality business that customers cared about.

“For me, it’s not really about fixing the cars, it’s more about fixing the way we fix cars,” Bemiller says. “And that’s kind of what my company is about, what I’m about.

Over time, I would say that certainly has evolved into a love of the industry.”

Hands-on Experience For Sheryl Driggers, formerly the co-owner of Universal Collision Center in Tallahassee, Florida, collision repair was also something she saw an opportunity in. In 2000, she and her husband, both possessing an “entrepreneurial spirit,” she says, were looking for a business to start together. A shop came available, a business plan was drafted, loan secured, and they opened their doors in September 2001.

“At that point, I can’t say I had a love for the industry,” says Driggers, who now works with Mike Anderson at Collision Advice. “It was a business opportunity I had, I knew I wanted to be in business for myself, I knew I wanted to be in business for more than just for myself. I’m a woman of faith, and so it’s not just about, I guess, finances, if that makes sense. It’s about how we can help other people.”

Driggers understood the business side of things, having worked in corporate

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America in marketing, but the actual performing of collision repair was still a mystery. So she dug in and got hands-on. Literally. Driggers would spend days alongside the technicians in her shop like an apprentice would. While she can’t recall a single light bulb moment, it was through doing that work that she formed the passion she now has for the industry.

“I don’t think there was a moment of, ‘Oh, I just fell in love with this industry,’” Driggers says. “But over time, you do, you just fall in love with this industry, and it’s not just about repairing cars, it’s about making an impact in peoples’ lives. Team members, your employees, what kind of impact are you making in their lives?”

Ingrained at a Young Age Mark Probst of Probst Auto Body in central Illinois did come from a technician background. Falling in love with collision repair was maybe a little bit easier as he had a deep love for cars from a young age. He recalled tinkering with cars in the backyard with his older brother before making cars his career.

“I graduated high school, went to college for two years to auto body school, started working on semis in a body shop, did that until I was 26 years old,” Probst said. “In the meantime, I was restoring, and I’d get done working all day and then I’d go home and restore cars at night.”

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T R ACI NG T H E SPA R K OF I NSPI R AT ION

While falling in love with the car aspect of the business was easy, what made Probst fall in love with the industry came later. It was digging into the small details of the business and growing it and making it better that forged a passion for collision repair.

And, as other owners mentioned, the opportunity to help people when they need it most kept him coming back.

“It was something like, ‘Hey, I can fix that,’ take a wrecked car to fix it, paint it, have it looking like new again, for something that to somebody is like tragic, I can take out and I can make their day better,” says Probst. “It’s just a feel-good moment.”

Ups and Downs Of course, not every path to success is constantly ascending. These shop owners may have early moments of inspiration that stoked their love for the industry but that doesn’t mean that love is never challenged.

All four could recall those moments of selfdoubt or simply being overwhelmed by the demands placed on an owner.

Driggers faced a challenge from the getgo, with her and her husband’s shop opening just six days after the 9/11 attacks. But they grew through that, learned some lessons, and opened a second shop in 2004.

Driggers managed that while also having her first child the same year.

Going next from two to three shops was a big leap. Around 2010 the feeling of burnout was starting to feel like too much.

She says she questioned why she was doing what she was doing and why she was working so much at it. An avid reader, Driggers around this time picked up the book “Start with Why” by Simon Sinek and suddenly something clicked.

“That was a really good place for me to read that,” Driggers said. “What’s my why? Why do I get up and do this every day? And then, that’s what propelled me through burnout. Like, then I was energized. Because I knew my why, I got really clear on my why. And that was my focus instead of the stresses that come in with running a business.”

Lobsiger recalled one of those moments and how it then helped reignite his love of the industry.

“I was working 70 to 80 hours a week and just killing myself,” Lobsiger recalls.

“And finally in 2008, I remember going home in March 2008, a Tuesday night,

January 2023

I went home and told my wife, I said, ‘I don’t know what else to do. The only thing I know and understand is collision repair and I’ve got to get somebody to help me.’

And so I came back the next day to the shop and got cold called by a consulting outfit out of California.”

Through that guidance Lobsiger was able to understand the numbers side of the business better. One of the things he came to understand was what he calls the “four stages of freedom” that every shop owner goes through on their way from starting the business to one day handing over some of the controls. The four stages are: The owner is working on cars, ordering parts, dealing with customers, and all the other daily details of running a shop.

The owner is no longer working on cars, but working in the front, working with numbers, more invested in the business side.

The owner hires someone to cover the front, and is able to float among the daily operations of the business as needed.

With solid leadership overseeing all daily aspects of the business, the owner is free to work on the business itself and those higher-level decisions.

“That was crucial for me,” Lobsiger says.

Sharing the Love As owners begin to step away from the dayto-day minutiae, they’re able to discover new things that they love about collision repair. For Probst, who had a singular focus on growing his business for 18 years, suddenly had a shift in mindset when he opened up a second location two years ago.

Even though he was by then an experienced business owner, starting a second shop from scratch still presented new challenges and reignited old challenges he hadn’t dealt with in years.

In digging into starting the second shop, Probst had to relinquish day-to-day decision-making at his first location over to his staff. That allowed Probst to focus on the big picture and what the business needed most. It turned out he had a love for training and teaching and growing his employees at the second location just as he had done in the first.

“If I can provide some knowledge or teach an employee, it’s a successful day, versus seeing him do something wrong

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Working Toward Freedom For owners like Greg Lobsiger (top), it’s about having the freedom to dig into other parts of the shop.

and get frustrated and get mad or yell at him,” says Probst. “... My outlook has changed, and I’ve become more of a teacher and trainer. Some days are easier, some days are harder.”

Just like how she dug in to learn the finer details of collision repair, Driggers still enjoys learning. She’s now helping pay that learning forward in her work with Collision Advice. Driggers recalls how she had mentors like Anderson and colleagues in 20 Groups that opened her eyes to issues in and around collision repair.

And she doesn’t plan to slow down her own education anytime soon. Possessing what she calls a “love of learning,” Driggers enjoys staying up to date on the latest happenings within the industry.

“I don’t remember who I told this to at the FenderBender (Management) Conference, I said, I will be a lifelong student, because I love learning new things,” says Driggers. “And that’s the great thing about our industry, the way that vehicles change so quickly. You’re always learning, like there’s never a time where things are not changing that you can’t learn something new. And that’s one of the things that I love about our industry. It’s a challenge, but it’s a fun challenge.”

I FEEL SOMEWHAT ADVANCED THAT I CAN SEE WASTE IN MY SHOP.” —Greg Lobsiger, owner, Loren’s Body Shop

January 2023

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T R ACI NG T H E SPA R K OF I NSPI R AT ION

Like his fellow shop owners, Bemiller too enjoys being a part of growing the next generation of collision repair professionals. As someone who learned the trade through mentorship, Bemiller knows the importance of creating opportunities for employees to craft the career that they want. Bemiller notes how he’s seen the industry change over his decades of experience. When he started, most of his coworkers were in their 40s and 50s and had been in the same roles for a long time. But today’s technicians may have other goals, and nurturing those is going to be key in surviving the current labor market.

“Most of the technicians that I’ve worked with from previous generations, when they were 15, or 18, or 20, or 22 years old, and they decided that they were going to be a technician, or were a painter, that was a lifetime decision,” Bemiller says.

“Now they’re saying, ‘Hey, I want to come off the floor at some point, I don’t want to be doing this when I’m 60, I need to, you know, develop the next skill set so I can move into the office and ultimately be a manager or be a leader.’ “… So that’s one major thing that I’ve really started to see that just in the last couple of years. And that does excite me because I think that as an industry, we need more leadership. And anybody that’s willing to take on the mantle of leadership is exciting to me.”

Learning has been a big priority on Lobsiger’s life and career as well. By his estimation he’s spent roughly $300,000 on coaching since 2008. Lobsiger is an advocate of lean principles and really enjoys digging into numbers, talking shop with fellow owners and helping them understand their businesses better. Being able to take a look at his shop and see where the problems are feels almost like a superpower.

“I feel somewhat advanced that I can see waste in my shop,” says Lobsiger. “You know, why did Joe walk back and forth here three times today? Well, maybe he was trying to get some fasteners. When he was putting his car back together those fasteners weren’t replaced when the car was taken apart initially. Every step that that guy has to take, there’s no way that customers are willing to pay for that.”

January 2023

Passion to Pass On Mark Probst (right) has renewed his love of collision repair through teaching and leadership.

THIS BUSINESS IS A HARD ROAD, IT’S A VERY, VERY HARD ROAD GOING ALONE. —Mark Probst, owner, Probst Auto Body

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Looking Back to Look Forward Back when Bemiller committed himself to collision repair, he did all the research he could. This was in 2004, and a lot of the news wasn’t good news, he recalls. The industry had a negative perception. Insurance companies had too much power and didn’t pay shops enough. And enrollment at vocational schools was declining, setting up a shortfall in the number of technicians needed in the years to come.

“And you know, of course now 20 years later, this what we’re living through,” says Bemiller.

But despite those challenges, Bemiller was fully in. And he still is.

“I looked at the industry, and I said, you know, I’m going to clean this place up, I’m going to make quick work of this business,” says Bemiller. “This is going to be awesome.

I’m smarter than everybody else. And you know, I’ll be retired by the time I’m 35. So that was what I was thinking at 22. Now I’m 40 years old. I’m not retired.”

Longer-than-planned career notwithstanding, Bemiller doesn’t have any regrets. Fixing the industry is a passion that still drives him today. “Fixing the way we fix cars,” is what his company is all about, Bemiller says.

“That certainly has evolved into a love of the industry,” he continues.

“Even if it wasn’t necessarily apparent right from the get-go.”

Looking back, Probst says that if there was one thing he could change about his career it would be to ask for help sooner. In the early days of his shop, he would put everything on his shoulders, putting in the extra hours to ensure a car got delivered on time.

“This business is a hard road, it’s a very, very hard road going alone,” says Probst. “... I didn’t get help. I didn’t turn over roles.

I was very hesitant for a long time. When I started consulting and training, there’s when my business changed. “… I’m still engaged and I plan to keep growing. Would I give it up? No. I’m not ready yet.”

January 2023

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LEARN

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GROW

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WORK SMARTER

S T R A T E G Y

THE SOP

SETTING CLEAR EXPECTATIONS

Clarity in communication helps avoid any misunderstandings.

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FOR WILL LATUFF, PRESIDENT OF LATUFF

Brothers Auto Body in St. Paul, Minnesota, setting clear expectations with customers begins and ends with honest and transparent communication—and lots of it.

Since the shop’s founding in 1933, the guiding principle hasn’t changed: “Better for you, your vehicle, and the

environment.” It’s this foundation that motivates every decision they make in the shop, and every interaction they have with customers. For Latuff and company, that means acting with integrity in all situations, even when no one is watching—and especially when communicating with customers. Everyone in the shop aims to be clear, open and truthful at all times, proactively updating customers, setting realistic expectations, communicating changes or mistakes when they happen and readily apologizing whenever necessary.

As communications and psychology expert Brené Brown likes to say, “Clear is kind.

Unclear is unkind.”

Here’s how they put that mantra into practice.

AS TOLD TO LINDSEY GAINER

Be Honest & Empathetic, Even When It Isn’t Easy Sometimes, the hardest thing for people to admit is that we’re human. You have to deliver the good news and the difficult news, no matter what. We make mistakes, we misunderstand, it happens to all of us … acknowledge it immediately and deliver solutions to correct and meet the customer’s needs. If you don’t proactively communicate with the customer, they will ask anyway and that is not a positive position to be in!

Timelines can be a source of misunderstanding at the beginning of the repair cycle. Customers may hear how long their repair should take from various sources external to the shop. Insurance photo estimates can be another source of misinformation if they severely understate the magnitude of the repairs—it creates a disconnect for customers when the estimate jumps from six lines and $1,200 to 250 lines and $12,000 plus. It can also be challenging

January 2023

when customers inform you of plans unexpectedly … that they need the car by a specific date for a vacation, wedding, or something important that was not shared during previous dialogues.

Regardless of the specific circumstance, the best way to navigate any difficult situation is by acknowledging the customer’s feelings. Empathy is the most effective tool to transform misunderstandings into effective communication and solutions.

Be Proactive, And Keep Communication Streamlined We have multiple positions that communicate with the customer throughout the repair lifespan. Our CSR communicates pre-delivery, our blueprinters communicate status and updates during production phases, and our front-end estimators monitor incoming communications and assist in times of heavy workloads. It is a team effort to serve the customer and remain proactive in communications.

Text messaging is effective and a time saver. Most communication is done via texting from the same phone number because it’s important that customer communications remain in as few channels as possible. Customers may be getting updates from the shop, the rental company and insurance all via text messages, so if your shop is sending from separate text streams this could be confusing for the consumer and difficult for the shop to monitor.

Communicate Often And Be Specific…Don’t Guess!

Before and at drop-off, customers will often ask how long their repair will take. We inform them when we will be able to give them that information, not how long we think it will be.

We send out appointment reminder texts one week and one day before drop-off.

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We also notify the customer once disassembly is complete and set the expectation that we will be in touch again when the repair plan is updated. Once the vehicle begins the repair planning phase and until it is ready to go home, our standard operating procedure is to update every customer every Tuesday and Thursday. We also communicate any changes or delays in repair timelines right away along with the reasoning.

The second to last text goes out when their vehicle is ready for pick-up, and we include our payment policy information as well as the balance due and our hours of operation. After delivery, we follow up with a final text to verify customer satisfaction and address any questions or concerns.

Bring The Customer into Decisions When things come up during a repair, you not only need to inform the customer so they can plan their life but also think ahead to how you can address a hurdle and communicate those options at the same time you are delivering the update. This conveys that you are committed to the customer and thinking of all the possible ways to serve them.

One of the best ways to communicate with your customers is to ask them questions. When you provide options or direction, ask things like, “How does that sound?” Or, “Which option would you prefer?” After all, it is their car, their claim, and their money … why not find out what serves them best?

The bottom line is this: communicate, communicate, communicate. Listen to what your customer is saying— really saying. Sometimes what they are saying isn’t what they are needing from you. Think with your heart and share that empathy with your customers. It’s not about the car, it’s always about what’s best for the customer.

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STRATEGY

EDUCATION+TR AINING

GETTING INVOLVED IN EDUCATION A beginner’s guide to what shops can do to identify the next generation of techs.

By K I M A N Z I C O N S T A B L E

January 2023

allow shop owners to train team members in the style they see best for their shop.

“Poaching from other shops creates chaos in the industry and lessens the supply of talent for shops. In the end, we’re losing if we have to rely on poaching,” says Hillel Shamam, a manager at CARSTAR Sun Valley in California who has also served on an educational board at Universal Technical Institute (UTI). “I’ve been involved with shops that invested time and resources into working with these educational training programs. Our average technician age was 30, while the industry average was 40. It takes an investment up front, but it’s worth it. After three years, you’re likely to have a huge return on your investment. Think about the opportunity costs—if you don’t invest in training, you can’t grow your shop.”

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Find Future Talent The numbers are the numbers—according to the TechForce Foundation, 2022 was the sixth year in a row the number of collision repair techs in the United States was in decline. TechForce estimates more than 113,000 new techs will be needed by 2026.

While these techs can enter the industry from everywhere, educational institutions will still be a driver of interested young people to collision repair.

There are trade schools and institutions in your area, and even virtually, that are training talent, and you can get involved as a shop owner. Many of these are national organizations with multiple campuses, such as UTI. The first step is to research what organizations are training collision repair technicians in your area and see how you can network with those institutions.

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H AV I N G T H E R I G H T CO L L I S I O N R E PA I R

technicians in your shop is one of the best ways to grow. The right team members help you deliver a quality product without needing your direct supervision, freeing up your time as the owner to focus on the other things that grow your business.

However, finding and retaining the best collision repair technicians is easier said than done these days. Global supply chain shortages, increased demand for collision repair, a shortage of trained technicians and competition affect the available talent in the market.

One underutilized way to find top talent is by getting involved in educational programs to identify the next generation of collision repair technicians. Networking with institutions can provide a pipeline of pre-qualified professionals into a shop and

Get involved in events at these organizations and offer your shop as an opportunity for training technicians to come and learn through your affiliation with these institutions.

“The advantage to shop owners is they get an opportunity to get to know prospective technicians before they actually have to hire them,” says Mary Nunaley, who has 15 years of experience in higher education as an instructional designer and professor and consultant for teams of educational instructional designers at large corporations. “Leaders at trade schools are always looking for people to come in and speak to their classes. The relationships that form from these opportunities to network are incredible. The training technicians get an opportunity to see what their future professor is like in a real way. It’s a worthy investment both ways. By networking with the institutions, you become better known as a shop owner to the educational community.”

Using a strategy like this will take some time to work through the kinks and determine how best to utilize these educational programs and institutions.

The future and technology change rapidly, so investing time and energy into setting up this pipeline now is worth it.

to create a pipeline of future talent is connecting any apprenticeship opportunities in your shop to local educational programs. You create a training environment for institutions while molding future technicians and getting your pick of the best future talent. Collision repair technician educational programs value their students experiencing real-world training, and you can provide that.

An investment in an apprenticeship program is a long-term growth strategy.

Spending resources now means you can get the pipeline of future technicians you need without all the added costs that can come from trying to recruit technicians right now.

“The training options available for shop owners and their technicians are limited. I’ve been a shop manager for 25 years and have watched the technician levels decrease. They’re great at diagnostics but aren’t getting realworld experience,” says Bill DeCarr, owner of Bumper to Bumper Auto Body & Collision. “Getting involved in other educational programs is a great opportunity for us to get different talent and increase our technician level. It’s a nice option to find untapped talent.

The techs are unavailable, and it can be expensive for smaller shops—the profit margins aren’t always there.”

Get Involved With Community Events

Assess What’s Working

Colleges, trade schools and training-based education programs for collision repair professionals host many local events all over the country. They range from meet-and-greets to job fairs and everything in between.

Go online and search for these events using event directory websites such as Eventbrite. Search “collision repair events” on these events sites and see which ones work for you to attend.

Show up, and don’t be shy. Talk to the leaders of the programs, training technicians and people involved in the events.

You should be able to identify opportunities to get involved with institutions and educational programs that train technicians.

While the opportunity to build a future pipeline is excellent, you want to ensure you’re not wasting time and money. Once you have some involvement or set it up, you

should frequently evaluate what’s working and what’s not.

Maybe you can see that a possible future technician or even the educational program is not a good fit, don’t be afraid to make some hard decisions that will ultimately be best for your shop.

“One thing I would consider is to talk to the program chair of a particular program about the students—they’re very open about giving feedback,” says Nunaley.

“The educational programs generally already have an established vetting process.

Use that in-place filter to know what makes sense for you.”

Go Beyond Local Maybe there aren’t educational programs in your area, or you don’t have time to volunteer while also running the shop. Another way to contribute to the future of the industry is to work with programs like TechForce, which accepts one-time and recurring donations to fund educational opportunities for prospective automotive technicians. Working with nonprofits not only funds the future of collision repair but can also lead to more opportunities to get connected with techs and start your pipeline.

Finding the next generation of talent through involvement with educational training programs and institutions is a great way to mold technicians in the best way for your shop. You can find talented people who just need more experience to become career technicians. It’s worth at least taking a look to see what the future of your shop might look like.

Offer Opportunities For Training Future Technicians

Apprenticeships are common in the automotive repair industry. One adjustment

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STRATEGY

CASE STUDY

How one shop owner has harnessed cheap and easy solar power for his business

By LINDSEY GAINER

S C O T T M A R S H A L L H A S H I S E Y E S S E T O N T H E F U T U R E . The owner of Marshall Auto Body in Waukesha, Wisconsin, has strategically positioned his shop to take on what’s to come—both in the kind of work it is doing and the way in which it’s doing it.

Marshall estimates that within the next two years his shop will be working exclusively on electric cars—which makes sense, since the shop was one of the first four factory-trained Tesla repair facilities in the world.

Electric, he says, is the way of the future, so that’s the direction he and the shop are headed. He believes the same is true of solar power, which is why he made the switch to powering his shop exclusively with solar in 2014.

“Solar allows us to be a sustainable business,” says Marshall. “We are very clean and we try not to waste labor, materials, or resources … your profits increase when you don’t waste things. So solar was part of that. And the biggest part, of course, is the environmental impact—we want to do our part in that regard most of all.”

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Although the technology for solar power has been around since the late 1800s, it wasn’t until the last several decades that it reached the point of being accessible to the masses. Prior to that, it was used mainly in satellites and other government applications.

Now, however, Marshall Auto Body is one of over 3.5 million individual solar installations across the country, and that number is expanding rapidly. The solar industry has grown over 30% every year for the last decade, according to the Solar Energy Industries Association.

When you visit Marshall’s website, he proudly states that, “The energy we use to repair your vehicle comes from the sun!”

And it’s true—his entire operation, which includes several electric vehicle charging stations, is powered by the 284 solar GETTY

POWERED BY THE SUN

The Backstory

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panels that cover the roof of his building.

There’s even a widget on the shop website showing how much power the panels are generating in real time.

“Not only do our solar panels generate enough energy to power the entire shop, we often have excess that we sell or donate back to the power company,” says Marshall. “Even in the winter.”

The Problem The amount of electricity it takes to power a business can be costly, especially when that business is drawing large amounts of power for daily operations. Power tools, machinery, lifts, paint booths—they all require a good deal of electricity, and it adds up quickly when you’re paying a utility company. Marshall estimates that he was spending around $14,000 a year on his electric bill before switching to solar. That money now goes directly into his pocket.

An even bigger concern than the ongoing cost of traditional electricity, however, is the method by which it’s produced. Fossil fuels like coal, oil, and natural gas are needed to generate the power that supplies traditional electricity, and not only are they finite resources with limited reserves but burning them to produce energy is harmful to the environment in many ways. And that’s something that will affect all of us, Marshall says, regardless of which side of the political spectrum a person falls on.

There’s also the issue of supply and demand—there’s not always enough electricity available through the grid to meet the demand of everyone who needs it, with some states implementing rolling blackouts to conserve energy. That can have a detrimental effect on business operations.

The Solution Solar power is a self-sustaining, renew-

January 2023

able energy source, meaning the reserves are never depleted because they are constantly replenished—the sun will never stop shining, after all! It’s also one of the cleanest forms of energy currently available, and it allows its users to control where their energy is coming from.

Marshall readily acknowledges that making the switch to solar power is an investment, but it’s one that will pay for itself exponentially in the long run. And, to help offset the upfront cost, the government offers a 30% income tax credit to any business installing a solar energy system.

Because of that, Marshall was able to recoup his installation cost within just five years—which means he’s already profited over $40,000 in the three years since. That savings will only continue to compound in the months and years to come.

More importantly, however, Marshall appreciates that solar power allows him to operate his business in a more sustainable way as he strives to reduce waste in every area of his operations.

“Solar energy is something anyone and everyone can benefit from, as long as they see their business as viable for years to come,” Marshall says. “It’s an investment in the future. It’s good for business, and it’s not a partisan thing at all.

It just makes sense in every way from the economic sense to the environmental sense, and common sense, too, and from a profit standpoint as well.”

The Aftermath The average lifespan of solar panels is reported to be 25 to 30 years, although Marshall says he’s heard of many lasting up to 40 years.

In the eight years since installing his panels, he estimates that he’s spent $500 on maintenance, total.

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“There’s practically zero maintenance,” says Marshall. “If you were in a dirty or dusty area, you might have to wash them, but we never have. And every maybe four or five years you’re supposed to clean the filters on the inverters. We’ve had to have a couple of the inverters fixed over the years, but it was a minor thing. There really isn’t any maintenance to speak of.”

As the panels age, they may need more attention, concedes Marshall, but they’ll continue paying him dividends on his initial investment regardless.

The Takeaway While in the past solar energy was reserved for an elite few, it’s now an affordable, efficient, sustainable option for everyone, especially for business owners looking to lower their overhead costs and future-proof their operations.

There is still a good deal of confusion and misconception around the technology, however, due to the fact that many people remain unfamiliar with it.

Most of the myths circulating around about solar power are just that, though — you don’t have to live in an area that receives constant sun, the technology is reliable and the cost isn’t insurmountable anymore.

There are certain factors unique to every shop that will need to be considered to determine if solar is the right choice for them, of course, but Marshall would encourage any owner who plans to stay in business long-term to consider researching the technology and talking to local installers about the feasibility for their shop.

Educating yourself is the first step in the process, he says, the same way you would if you were investing in a new piece of machinery.

“Widen your frame of reference and start reading and learning with an open mind … we all have certain news sources we default to on a regular basis, this is different,” he says. “Make an effort to find unbiased information from people that have been involved in the solar industry for a long time. Learn about the reality of it, and how it might fit into your business plans.”

Marshall even suggests finding a local business that’s already using solar to see the setup firsthand and talk to them about their experience with it directly.

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STRATEGY

ADAPT

SEMA/AAPEX 2022 SPOTLIGHT ELECTRIFICATION The annual events were a hotbed for conversation surrounding electric vehicles and technology.

By H A N N A B U B S E R

January 2023

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I N N O V E M B E R 2022, the annual Specialty Equipment Market Association (SEMA) Show and Automotive Aftermarket Products Expo (AAPEX) both took place in Las Vegas. ADAPT was on the trade show f loor to report on the latest and greatest information regarding emerging technology, electric vehicles and more.

There was a lot of ground to cover, but here is an overview of a couple key areas from each show.

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SEMA Showcases Electric Vehicles The SEMA Show is definitely known for its cars. Everywhere you turn, be it inside the Las Vegas Convention Center or outside in the lots, there are impressive vehicles. Some are customized and others are new to the market, but they each have a story to tell. Not to mention they all make for great photos on social media feeds.

While the car-spotting element of the show is a huge draw, there was another theme throughout SEMA 2022 that drew some attention: electrification.

For example, SEMA Electrified drew a crowd with a 21,000-square-foot area dedicated to over 35 vehicles and nearly 60 different exhibits. SEMA Electrified is an electric vehicle hub that debuted in 2019. In 2022, it was the largest it had ever been.

SEMA Electrified showcased a multitude of custom EVs as well as new EV options such as the Karma GS-6. There were new versions of beloved classics like

January 2023

a re-imagined 1965 Ford Mustang from Inspire EV and a 1964 Ford Galax-E 500 from Conductive Classics that has a Tesla Model 3 drivetrain, brakes, wheels and single rear motor.

AAPEX Tackles EV Batteries The future of the aftermarket is a topic that looms over nearly every industry interaction these days. It’s a vast subject full of unknowns, which can be understandably intimidating. But with those unknown areas comes untapped opportunity, and that was a big takeaway across AAPEX this year.

There was an educational session on the final day of the show called, “Preparing for Battery Service on Electric Vehicles” that exemplified this notion. It was presented

by Keith Hospodarsky, global EV platform senior manager at Midtronics.

Hospodarsky leveled with the audience as they listened to his presentation.

He said that those in the audience may be wondering why they should pay attention

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to this kind of vehicle service, and he was prepared to tell them the reason.

“These vehicles are going to be on the road and they’re going to need service,” Hospodarsky said.

He outlined a general approach that shops should have regarding EV battery service, which included the following steps: Familiarize yourself with the technology, select a service strategy, investigate the service applications, equipment and the training that is needed to be successful.

AAPEX also featured a New Product Showcase that included various products relevant to new technology and EVs. Some of these relevant products were the Autel MaxiCHARGER Commercial Charger for Level 2 EV and plug-in hybrid vehicle charging, Electric Vehicle Charge Cables from WAIglobal, an EV Braking Kit from Brembo, the PulseQ charger and Augmented Reality Glasses from TOPDON and many more.

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STRATEGY

GOO D L E A D E R S H I P M A K E S team members work harder without needing direct supervision. Leadership shapes the environment in a shop, and your customers can feel it before a word is even spoken. Your leadership style does all the talking.

Leadership is considered a soft skill, according to the job professionals at Indeed, but it directly impacts your shop’s profitability. A good leader in your shop

LEADERSHIP

DETERMINING YOUR LEADERSHIP STYLE Good leaders aren’t created equal; they succeed in different ways.

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By K I M A N Z I C O N S T A B L E

January 2023

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helps each team member see their responsibilities in a way that motivates them to work effectively. A leader influences and guides others, primarily through their actions and behaviors.

To create good leadership in your shop, it helps to zero in on the type of leaders you and your managers are—this identification matters.

Maybe your style matches your values and personality but there is also something you can learn from exploring other styles and use that knowledge in how you’re building your shop. You can’t hit clear goal metrics if you’re not clear about what you’re trying to accomplish— your leadership style is that primary goal metric.

“A lot of people are used to being told what to do, but a leader’s job is to set the culture and empower the team to do their best,” says Dr. Wayne Pernell, a leadership development consultant known as the Exponential Success Coach. Dr. Pernell has worked with clients ranging from individuals to corporate teams, helping them optimize leadership and mindset.

“If team members feel like they’re being watched or will be punished, you’ll never get their best work. The main goal should be to create a culture where you build and grow people’s strengths.”

Leadership in your shop and your leadership style are important. Here are some common leadership styles and what to consider when designating a leadership style that’s effective and works for you as a shop owner.

Adjusting Your Leadership Style Changing as a human being is not always easy, but it’s possible. Creating changes in your leadership style will pay dividends in your shop if you’re open to doing things differently.

Start this process by understanding the leadership styles you’ll see listed below—think through which is the right style for you. Consider what would be required for a particular style and be open to working on it, even if this is a long-term process. As Dr. Pernell says, “Our work is to take inventory about what strengths we have and to build and develop the areas we’re not so strong in.”

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Once you identify a style that works for you, let your team know you’ll be implementing changes to their benefit. Let your technicians and customer service professionals know that you’re working on improving efficiencies in your shop and creating better leadership.

best do their job. Strong leadership is crucial. Everyone in our shop is accountable, and Mark (my husband) assigns work and tries to be a good leader for our team,” says Yvette LeBlanc, co-owner of Maggio Collision Center, with her husband.

The Transactional Leader

Democratic leadership is a style that emphasizes participation, according to Asana, an automation company. This is a committee-based leadership style that considers the opinions of our employees and managers and sets SOPs based on their feedback.

The advantage of this leadership style is your employees feel involved in the process, creating more buy-in. This leadership style inspires ideas for how things can improve because everyone is involved.

The con is that it can be challenging for humans to agree on anything. When you, as the shop owner, ultimately choose, some will feel their opinion is not valued, which could affect employee performance.

Indeed defines transactional leadership as leading based on either rewards or punishment. Think military leaders or taskmaster football coaches. Essentially, you give employees either bonuses or penalties based on their performance.

The transactional leadership style is more transparent than others. Your employees will understand the benefits or consequences of not following what you say as a leader.

Your instructions are clear, and the consequence structure is straightforward and can be updated. Transactional leadership can be a simple style for employees to follow.

The con is that your employees will always feel under pressure and may make mistakes due to fear of doing something wrong. You might also feel like a cold leader with all the fear surrounding you.

The Transformational Leader Transformational leadership is a style that’s based on creating change through inspiration and lived examples, according to Verywell Mind, a mental wellness publication. The transformational leader leads by example, and others want to follow because they’re inspired by what they see in that leader every day.

Transformational leadership is a highlevel view of leading that places more trust in employees. It’s an indirect form of leadership that focuses on teaching employees to be more self-sufficient.

The advantage is employees following you from a place of motivation and inspiration is the type of leadership that creates lifelong, loyal employees. The disadvantage is a lot of trust is placed in employees, which could lead to you finding out about issues later than you’d like.

“We have eight employees and work on about 40 cars a month in our shop. We feel like there has to be a chain of command for everyone to report to for them to

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The Democratic Leader

The Bureaucratic Leader The bureaucratic leadership style is based on following the rules and regulations you set for your shop—it’s a very by-the-book leadership style, according to Masterclass, an education company.

This leadership style is heavily reliant on you being clear and having set your standard operating procedures in writing.

You may change them, but you’ll have baseline guidelines set.

The benefits of this leadership style is that things are clear and easy for employees to follow. The con is that you may need to update your SOPs often to ensure they are current and clear.

Pick a Style That Works for You Your leadership style is only as effective as your ability to implement it. Think about which leadership style best fits your values, goals, and personality. Study leadership as a business growth principle because it’s how you’ll create the best team of technicians and front desk professionals.

Invest time and research into leadership training for yourself as a shop owner and your employees. You’ll build a strong company that runs and grows without you needing to be involved in every aspect— leadership identification matters.

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FOLLOW WHAT THE LEADERS FOLLOW. CONNECT WITH FENDERBENDER FOR T H E L AT E S T C O L L I S I O N R E PA I R C O N T E N T

COLUMNS

COLLISION COURSE

Getting Paid on Markups, Sublet Billing & Delivery Fees There may be a solution to getting paid that you haven’t considered

JOE GRETO

I think it is pretty much the consensus

that we all get irritated when we request payment for a service from the insurance company and they only want to pay a certain amount and it’s less than what we requested. Then another shop requests payment for the same service, but the service was provided by an outside company and the insurance company marks it down as a sublet repair and they pay the requested price with no issues. Personally, I find this super frustrating and unfair. They are willing to pay a “sublet” repair company for services provided at the cost the repair company is requesting but the body shop will only be paid the current insurance rates.

Another pet peeve of mine is insurance companies and how they pay markups. Some adjusters will automatically pay markup on sublet repairs and some won’t. Some will pay markup on towing but not pay markup on recalibrations.

From mount & balance to calibrating systems it is always hit or miss if the insurance company will pay markup on the services. And let’s be realistic—they should. It is true we are not providing the service, but we are making the arrangement for the service, we are making sure the service gets done and that takes the time of employees that we are paying.

I think one of my biggest irritations though is parts procurement and the insurance company telling us where to buy a part and then not wanting to pay for delivery fees or time to go and pick up the part. I have one insurance company that loves to get salvaged parts from a salvage yard on the other side of my city. It is a good 45-minute drive there and back and they want to buy parts there because they can save an extra $50 or $60. If I decided to buy from that salvage yard, I would be wasting an hour and a half of an employee’s time plus gas and wear and tear on one of my shop vehicles and the insurance company would not reimburse me for these expenses. Parts companies are also starting to charge delivery fees where they did not in the past and the insurance companies don’t want to pay them.

So how do we combat all of these issues? My answer is to DBA your company. Now hear me out, this is not going to be as much work as you may think. I paid a $29 fee down at my county courthouse to DBA my company with another business name and used the physical location for that DBA.

January 2023

We already used Quickbooks for our accounting purposes but we were not using the invoicing section in Quickbooks because we use another program for that. We set up a different profile in Quickbooks with our new DBA and started invoicing anything that is a sublet repair through our new DBA. The DBA is providing all sublet repair services to our company. The insurance company does not need to know that our DBA only uses “subcontractors.”

We invoice anything that is a sublet repair through our DBA. We provide a detailed receipt for the service, just like the sublet repair company provides to us. The difference is that our invoice has the markup built into it for the insurance company. The insurance company does not need to know what I pay my subcontractors (sublet repair companies). That is none of their business— that is between myself and the other companies I do business with and the rates I negotiate with them. We invoice through the DBA all repairs that are marked as mechanical on an estimate. We invoice through the DBA all calibrations, towing, mount & balances, alignments and anything else we may not do in house.

We also use the DBA for shipping and delivery invoices and also for in-stock items. If an insurance company wants me to buy a part at a company that does not deliver and we go and pick it up, then we provide an invoice for shipping of the requested part. Also, sometimes we have parts that are in stock in the shop but for which we don’t have an original invoice. We all have them, random parts that we couldn’t return or there was some issue and now we have an inventory of random parts. We use the DBA for invoicing of those parts when we use them on a repair.

My general recommendation is if you start to use this method then break in the adjusters slowly with it. Don’t just send them six invoices from your DBA on your next claim. Start off with one invoice from the DBA on your next claim and build on that. Get the adjusters used to seeing invoices from your DBA and you will get a lot less push back. If you have noticed the common theme here and with most of my articles is DOCUMENTATION. If you provide the insurance company documentation, for the most part they will pay you. Sometimes you just need to be creative in how you present that documentation.

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TIFFANY MENEFEE

has more than 20 years experience in the insurance business and now runs a collision repair shop in El Paso, Texas.

EMAIL:

tiffanykaymenefee@gmail.com

ARCHIVE:

fenderbender.com/menefee

fenderbender.com

COLUMNS

DUE PROCESS

A Lot to Love About Collision Repair Every once in a while, take a look around at what a great place this is to be. enter the collision repair industry. For me, it was a combination of several factors. I was passionate about cars and loved working on them. I wanted to own my own business, and with the advancements in vehicle technology, I knew that the collision repair industry had a lot of potential. The collision repair industry is constantly growing, and there is a lot of opportunity for entrepreneurs willing to put in the hard work necessary to succeed. In this column, we will explore why I love our industry and discuss the impact that intentional process development/implementation can have on your shop.

1. Opportunity for Growth The collision repair industry is constantly growing, and there are a lot of opportunities for entrepreneurs willing to work hard and stay up to date with the latest trends and techniques. Vehicle manufacturers continually push tech limits to consumers; if we can remain educated on these services and systems, success becomes the byproduct.

2. It’s an Industry in Demand The collision repair industry is in high demand since car accidents happen every day, and they often require professional repairs to restore vehicles to their previous condition. As long as automobile owners need repairs, the collision repair industry will remain a viable business opportunity.

3. It’s an Exciting Field The collision repair industry is constantly evolving with new technologies, materials, and challenges, making it an exciting field to be a part of. As a business owner in this industry, you can stay up to date on the latest advancements and utilize them for your business.

4. It Allows for Creativity The collision repair industry provides the perfect canvas to take your creative ideas and apply them to your business, whether it be innovative marketing techniques, customer service strategies, production processing strategies or even something as simple as a unique shop layout. With so many moving pieces within any shop today, this industry allows for even the most straightforward process development strategies to have significant impacts if appropriately implemented.

5. You Get to Work with Customers in Need As once the owner of an improperly repaired vehicle,

January 2023

I learned the importance of complete and proper repair the hard way. After years of research, I wanted to build a facility that supported the customer with transparent exposure to OEM repair procedures and specifically define who was really “on my side” during the repair process.

As a previous restaurant training manager, I learned early on that the difference between any successful business and one that struggles has little to do with the industry they operate in. But instead, what matters is the operation’s ability to channel internal & external communication into healthy process development and implementation. Then, the business must develop the muscle of discipline to keep it all consistent while holding its team members and departments accountable. This includes a dedication to team building, personal & professional development, customer service, and a focus on maximizing the team’s full potential. This industry is rich in good people. Skilled or not, we must remain dedicated to developing these people internally. This development journey is what gets me out of bed every day. Yes, the money and freedom that come with running a successful company are nice, but when you can get excited about the growth of people you spend more time with than your own family, you know you are on to something special.

The collision repair industry has been good to my team members & family. I feel it is an excellent opportunity for entrepreneurs to grow their businesses and positively impact the lives of great people. Through intentional process development and implementation, business owners have the power to create a culture of quality that sets them apart from the competition. With a dedication to team building, personal and professional development, customer service, and a focus on maximizing the team’s full potential, any shop owner can succeed in the collision repair industry.

Have you found yourself recently burned out on the idea of shop ownership? Are you exhausted from the day-to-day monotony you may be facing within your store, possibly considering moving on to another industry? If so, I highly recommend looking inward at your overall operation, standard operating procedures, & your team members’ potential. With this industry’s direction, we have nothing but the opportunity to establish and maintain foundational businesses. Through a little hard work and dedication, you, too, can find love in this fantastic industry.

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D R E W B R YA N T has been

the owner of DB Orlando Collision since August of 2011. A 20 Group leader, in-demand conference speaker and award-winning shop owner, Bryant takes a non-traditional approach to process implementation, lean process development, & overall operational experience while remaining dedicated to his staff’s personal and professional development.

EMAIL:

drew@orlandocollision.com

ARCHIVE:

fenderbender.com/bryant

fenderbender.com

STEVEN PARKS

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