FenderBender: February 2023

FENDERBENDER.COM / FEBRUARY 2023

BECOMING A DESTINATION SHOP P A G E 24

TRACKING THE LITTLE DETAILS PA G E 32

Strategies & Inspiration for Collision Repair Success

DYNAMIC DUO FATHER AND DAUGHTER WORK SIDE BY SIDE IN UTAH PAGE 28

MEETING MODERN CUSTOMER EXPECTATIONS

PA G E 34

Still Tinkering Swayzi Giles grew up helping her dad Cole in their home garage. Now they’re both professionals.

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CONTENTS

FEBRUARY 0 2 . 2 3

|

V O L U M E

2 6

FEATURE

|

N U M B E R

0 2

PROFILE

24 SHOPS OF CHOICE

28 FATHER/DAUGHTER POWER

What some shops are doing to attract top techs

Cole and Swayzi GIles love working side by side at their Utah shop.

BY TODD KORTEMEIER

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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February 2023

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CONTENTS

FEBRUARY

QUICK FIX

10

13

PAST THE PAGE

BREAKDOWN

11

NUMBERS

A deserving Recycled Rides winner

DRIVERS SEAT

Seeing the world

The future of scanning?

20

17

Best laid future plans

19

LIGHT HITS

A legend retires, and much more

20

SNAP SHOP Out of the elements

Warm and Dry Customers and employees don’t have to brave the North Dakota weather at this shop.

STRATEGY

COLUMNS

32

THE SOP

32

Don’t forget the little things

34

CUSTOMER SERVICE

Making collision repair more like Amazon

36

CASE STUDY

Succession isn’t always a success

February 2023 2302FB_ARSLoaner.indd 1

7

38

ADAPT

Innovation wanted in EV batteries

40

EDUCATION + TRAINING

Researching repair procedures

23

SHOP PROFITS

What’s hiding in the details

BY G REG LOB S IG E R

47

COLLISION COURSE

Learning to ask

BY TIFFANY ME NE FE E

48

DUE PROCESS Getting on schedule

BY DRE W B RYANT

fenderbender.com 1/23/23 9:35 AM

CONTENTS

ONLINE EXTRAS

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

Accudraft

Auto Data Labels

Hunter Engineering

Polyvance

ARSLoaner

Auto Job Central

Industrial Finishes

ProColor Collision

AUTEL

Axalta Coating Systems

Mitsubishi

SATA/Dan-Am Company

AutoZone

O’Reilly Auto Parts

Spanesi Americas

February 2023

8

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EDITORIAL

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

Jonathan Ricketts Senior Art Director Mitch Bradford Art Director Morgan Glisczinski Graphic Designer Emme Osmonson 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

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BACK IS SUE S

Past issue single copies are $8.

Go to fenderbender.com/backissues

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

LET TE RS TO THE E DITOR editor@fenderbender.com

ARTICLE RE PRINTS

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

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PA ST T H E PAGE

‘BUD’ EARNS RECYCLED RIDE good,” said Ann Maastricht, executive director for The Sunshine Place, via the press release. “He has always been willing to do whatever is asked of him, including working nights and weekends, particularly when it comes to snow removal. Being able to work with Allstate, Gerber Collision, Bank of Sun Prairie and the National Auto Body Council to make all it possible to present him with a vehicle is incredible. He gives so much and we are honored to be able to give back to him.”

Proud new owner Simmie “Bud” Bryant took possession of a 2021 Kia K5 donated by Allstate and refurbished by Gerber Collision & Glass of Sun Prairie. The Bank of Sun Prairie sponsored the event. The presentation to Bryant was held at The Sunshine Place, a local charity where Bryant works as a handyman performing maintenance work for the building. Bryant was expected to use the new vehicle to spend more time with his grandchildren and also move into safer housing, which he was unable to do previously as he had no way to commute to work.

Bryant became one among more than 3,000 Recycled Rides recipients who have been gifted with reliable transportation since the program began in 2007. The total value of the vehicles awarded is estimated at $42 million.

Visit FenderBender.com/news for daily updates from around the collision repair industry.

“Bud is someone we depend on to keep Sunshine Place looking

@fenderbendermag

February 2023

@fenderbendermag

@fenderbendermag

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COURTESY GERBER COLLISION & GLASS OF SUN PRAIRIE

J UST IN TIME FOR THE HOLIDAYS, a Sun Prairie, Wisconsin, charity worker received a bit of a reward for years of hard work in the form of a Recycled Ride from the National Auto Body Council, the organization announced in a press release.

VIDEOS

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E ERB’ SI NSAERA P O D C A S TD S R |I VW ST |

NEWS

WINDOWS ON THE COLLISION REPAIR WORLD

On opening up other perspectives in the pages of FenderBender rapidly (p. 34). Customers today are used to instant results thanks to online retailers.

Body shops will never offer instant doorto-door repairs, but there are some ways to bridge the gap of customer expectations.

Whether or not you adopt these strategies is up to you. We’ll be back next month with more windows into more shops. Thank you for your continued support of FenderBender.

HERE AT FENDERBENDER, WE TRY NOT

to give information in terms of what shop owners should or shouldn’t do. I’ve learned a thing or two about collision repair, but the lot of you have forgotten more about this industry than I’ll ever know. I deal with words, not wrenches.

If you were able to be dropped into a shop across the country and find out what they were doing differently than you, you’d probably be happy to take in that info. But probably not all of that information would be relevant to your shop.

That shop has its own unique market that might be radically different from yours.

However, maybe there’s one little strategy you could pick up. Or maybe there’s one little strategy that doesn’t fit but that makes you think of something else. Carrying that information back to your shop instantly would be like magic.

At its best, I like to think of FenderBender as your teleportation device into those other shops. It’s a marketplace of ideas, some that may not apply but a majority that at least get you thinking. I think this issue is particularly geared toward that goal.

Every shop today is facing the same challenge and there is no singular solution. But shop owners are continuing to innovate and do what they can to do right by their customers and their employees.

In this month’s feature story (p. 24) you’ll read about what shops are doing to cope with the technician shortage, but from a different perspective. They’re asking what can they do to be a place technicians want to work at in the first place.

We’re also looking at what shops can offer to a customer base that has changed

February 2023

TODD KORTEMEIER

EDITOR

tkortemeier@endeavorb2b.com

11

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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

GETTY

PROTECH’S ID3 COULD BE THE FUTURE OF MACHINE LEARNING IN DIAGNOSTICS

The software uses AI and machine learning to identify needed calibrations in a repair B y T O D D K O R T E M E I E R February 2023

13

T H E I D E A T H A T many points of data are better than one is not new. It is in fact among the oldest ideas in Western philosophy. Aristotle wrote in Politics that the many, when together, can have abilities far beyond even the most excellent individual.

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QUICK FIX

While probably not the sort of thing Aristotle had in mind, the value of that pooled information is the principle behind Protech Automotive Solutions’ ID3 calibration identification solution.

Unveiled at the 2022 SEMA Show, ID3— pronounced “ID cubed”—uses artificial intelligence (AI) and machine learning to identify calibration needs in a repair.

While that service exists in many forms today, Protech Vice President of Product Development Don Mikrut says that the key difference with ID3 is that instead of merely returning what kind of calibrations might be needed, ID3 is able to use its knowledge base to deliver more accurate assessments quickly.

“We start to triangulate all that data through the algorithms and the machine learning that we’ve developed, to come back and say, based on your pre-scan, and the estimated damages, and the OE procedures and knowledge base, we’ve been able to triangulate this,” says Mikrut, hinting at the source of the three in ID3’s name. “Every line of that estimate comes back and tells you this is what needs to be calibrated on this vehicle based on the damages.”

To know that this process happens in milliseconds is to partially understand the genesis of this project and its need in the marketplace. With the advent of ADAS systems, shop owners were needing to devote time to a manual research process to know what systems needed to be calibrated on a vehicle for any given repair. A diagnostic scan could reveal what systems were present but not necessarily which ones were impacted by damage. That leaves a process open to interpretation and judgment calls.

This is what Protech was hearing from its collision customers. A research and development team led by Vice President, Protech Technology Innovation Chris Gutierrez was tasked with solving this problem and the result was ID3, which had been rolled out in approximately 1,200 locations by the end of 2022. The team leaned on “30-plus years of building a knowledge base,” according to Mik-

February 2023

rut, that encompasses Protech’s acquired expertise as well as data from OEs for ID3 to draw on.

“ADAS ID3 builds on our expertise and history in the vehicle diagnostic industry by revolutionizing the identification of calibration and repair needs, thus saving our technicians and partners time and money,” said Gutierrez at the time of the product’s release. “Protech’s focus is to fix vehicles the right way the first time.”

And ID3 isn’t just a one-time search.

It continues to work as a vehicle goes through the repair process and is equipped to handle any contingency.

14

“Your estimate can be five lines, it could be 100 lines,” says Mikrut. “And so our algorithm, the way we do it is that we triangulate every one of those lines to make sure that we’ve cross-referenced everything in that estimate. And not only from the preliminary estimate … as that estimate evolves to the full repair plan, and the finalized repair bill, we run it through that algorithm again so our machine learning continues to go through if there is a chance that as they tear the car out and find additional damages that our algorithm will come back and give them an additional calibration that may

fenderbender.com

simply unknown what the nature of those missed calibrations is. It may appear that the systems are working but not working as intended.

“What it means is that they’re not within the tolerances of where the OEM needs them to be,” explains Mikrut. “So they may function, but not function exactly as they were designed. They may be late to notify you of lane departure. Are they emergency braking, because it’s not at the right angle?”

To get ID3 working in the hands of customers, Protech has partnered with diagnostic tool providers Autel and Bosch

GETTY

be necessary on more internal damages found as the car continues through the repair plan.”

The difference that thoroughness makes is evident in the performance ID3 customers are seeing as the tool rolls out.

According to CCC’s Crash Course report prepared by industry analyst Susanna Gotsch, in the third quarter of 2021 7.1% of all appraisals included a calibration event. The results Protech is seeing from ID3 report that more than 30% of vehicles report a needed calibration.

Bridging that gap is vital to completing safe, quality repairs. It’s

for a seamless integration with those devices. How it works is the diagnostic information is sent to ID3, which goes through the triangulation process Mikrut outlined, and then returns a report either in an email or PDF format to the customer.

ID3 is one among an array of solutions Protech offers to its customers. The company also offers mobile diagnostics and calibrations, static calibration centers, virtual support and more. Protech realizes that continued innovation is essential to survive as the pace of vehicle development is not going backwards.

“It’s not only telling you what needs to be calibrated, we tell you how it needs to be calibrated,” says Mikrut. “And we’re advancing that as the vehicle advances so that they understand it. Because the last thing people need to know is, ‘Hey, look, I tried to do a dynamic, it failed. Oh, no, I can’t do it dynamic. What do I do?’ That’s where our information will come back and say, well, now you have no choice but to do static.”

Even with the swift advancement of vehicles, a platform like ID3 is in theory inherently equipped to deal with the changes. The more vehicles that get scanned the more data there is and the more machine learning that takes place.

Every year that gets added onto Protech’s 30-plus years of experience means more knowledge for the base.

“We’re always doing the research on the newest and latest vehicles,” says Mikrut. “So, because we have great relationships with OEMs and what we do with getting access to their repair procedures, their information, we’re constantly looking at the [2023 vehicle models] before they come out. So as soon as that information was there, we’re building the database, right? Because we need that information because, in a collision space, we can see a car that’s brand new, say he just drove off the lot and someone hit him, we’ve got to make sure that we’re always on the cutting edge. And so we’ve got a team of researchers that are doing that on a regular basis.”

February 2023

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QUICK FIX

NUMBERS

A PLAN TO SUCCEED

T H I S M O N T H ’ S C A S E S T U D Y C O V E R S succession planning, and how those plans can

go awry when life and business have other ideas. To what extent are owners planning for the future? The 2022 FenderBender Industry Survey reports that just under half of the 506 respondents plan to retire in the near future. But just about a third of all respondents said they have no succession plan in place.

Sell to consolidator: Transfer ownership to staff:

9%

7%

No succession plan:

32%

Other:

12%

Percentage of all survey respondents

Sell to private buyer:

15%

Leave it to family or business partner:

25% February 2023

17

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The ProColor team of industry professionals are dedicated to performance excellence offering the sales, operational and marketing support needed to take business to the next level.

ProColor Collision is committed to helping shop owners grow their business locally while leveraging established relationships with global insurers, suppliers, and fleet companies.

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s

QUICK FIX

LIGHT HITS

CCC’S SUSANNA GOTSCH RETIRES AFTER 30 YEARS

CCC Intelligent Solutions Inc. Senior Director Industry Analytics Susanna Gotsch retired after three decades with the company at the conclusion of 2022.

According to a press release, Gotsch star ted with CCC in 1992 working in product development and management before moving into her role as industr y analyst for the company in 2000. Among her notable achievements are star ting CCC’s Crash Course publication in 1995 and earning a Most Influential Women in the Collision Repair Industr y award in 2011. She has also ser ved on the board of the Women’s Industr y Net work and represented CCC at numerous industr y conferences.

“Susanna is exemplary in every way and her retirement, while bittersweet, is extremely well-earned,” said CCC Chairman and CEO Githesh Ramamurthy, via the press release. “From her early days helping to build what has become a world-class analytics team, to becoming among the most valued and trusted voices in the industry, Susanna’s contributions have been significant within CCC and beyond. She has been generous with her time and knowledge and leaves behind a strong team to carry forward the important work of equipping customers with information and insights to help them manage their business.

We wish Susanna the very best as she transitions into retirement.”

CCC’s trends and insights team dedicated to industry analysis will continue to be led by Vice President, Product Marketing Jason Verlen. That team has expanded to include Kyle Krumlauf, focusing on auto physical damage, and Erik Bahnsen in casualty.

Ramamurthy said that expanding this team is expected to scale the analysis the company is known for, which Gotsch played a key role in developing.

“CCC has been my home away from home for 30 years and I will miss working

February 2023

side-by-side with my amazing coworkers and so many wonderful people in this special industry,” said Gotsch. “I’ve had a front row seat as the industry has been transforming from analog to digital to AI-powered. I have thoroughly enjoyed my role in bringing CCC’s passion for helping customers use data-driven insights to inform their business. I’m excited to spend more time with family and pursue my other interests, and I wish to thank Githesh, the CCC team, and the industry for an amazing run.”

I-CAR OFFERS NEW COURSE ON VEHICLE TRENDS FOR 2023

With new vehicles and associated technology on the way in 2023, I-CAR rolled out a new course identifying vehicle technology and trends of note in the new year.

According to a press release, I-CAR’s Vehicle Technology and Trends 2023 course is a one-hour lesson led by I-CAR technical experts. Topics covered include ADAS features, unique features and technologies of 2023 model year vehicles and beyond and all the related considerations applicable to collision repair. The I-CAR Subscription Training Program includes the course, or it is available for a one-off purchase to any collision repair professional not already a subscriber to the program.

“With automakers (OEMs) introducing more than 100 vehicle changes each model year, the speed with which new technologies are introduced into vehicle applications is unprecedented,” said I-CAR Vice President, Sales and Marketing Nick Notte, in the press release. “As the collision repair ecosystem continues to be redefined, this course is another intentionally-designed resource to help collision repair professionals prepare for the road ahead.”

Vehicle Technology and Trends is an annual offering from I-CAR, presented as part

19

of its Vehicle and Technology and Specific Training family of courses. Enrollment is open now through the I-CAR website.

I-CAR AND CREF HONOR JEFF SILVER WITH MEMORIAL SCHOLARSHIP

I-CAR and CREF are honoring the legacy of one of their most influential members with the creation of the Jeff Silver Memorial Scholarship.

According to a press release, the scholarship will first be awarded this year to a collision repair student in a fitting tribute to Silver, who passed away in September 2022 at the age of 80. Silver spent much of his five decades in collision repair helping create opportunities for students to enter the industry, working with I-CAR since its founding and helping start CREF in 1991.

Silver served as I-CAR executive vice president for 11 years beginning in 1986 and played a key role in the development of I-CAR Gold Class certification. After leaving I-CAR he and his wife Jeanne ran Butterfield Bodyworks CARSTAR in suburban Chicago for 25 years.

“Jeff was passionate about helping collision school programs and their students, which is why he had an active role in establishing the Collision Repair Education Foundation back in 1991,” said Jeanne, via the press release. “This memorial scholarship will allow his vision to carry on in supporting these students.

Thank you in advance for considering helping honor Jeff’s legacy by supporting this scholarship!”

This is not the first honor named for Silver. The Jeff Silver Award has been presented each year since 2009 to an I-CAR Platinum member who has worked to enhance a positive image of the collision repair industry.

Applications for students interested in the scholarship opened in January; anyone interested in making a donation to the scholarship fund may do so at collisioneducationfoundation.org/ donate-now.

fenderbender.com

QUICK FIX

SNAP SHOP

1

5-STAR COLLISION & GLASS CENTER

By TODD KORTEMEIER Photos by RUSSELL HONS PHOTOGRAPHY L O C AT I O N :

GRAND FORKS, ND

OWNER:

CRAIG AMIOT

SIZE:

7,000 SQUARE FEET

S TA F F :

7

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

107

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

$1,600

ANNUAL REVENUE:

$2,050,000

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

SUBMISSIONS@10MISSIONS.COM.

February 2023

1. GIMME SHELTER

When winter comes, the wind is known to howl across the plains of North Dakota, sometimes carrying blinding snow or stinging sleet. Grand Forks locals in need of collision repair have enough to worry about with a damaged vehicle without taking the weather into account, and that’s where the drive-in estimate bay at 5-Star Collision & Glass Center comes in real handy.

Customers love it, but employees love it too, since it offers bright, consistent lighting in addition to the consistent climate.

“It’s nice,” says shop manager Bob Arnold. “I mean, even just the lighting, even when it’s nice outside, sometimes it’s better to get inside and get better pictures and see things a little better without that sun glaring on you. When it’s raining, wintertime, especially, it’s a game changer, not run outside with a hat and gloves on trying to get as many pictures as you can, as fast as you can to get back inside. So it’s really nice in that aspect for sure.”

Other customer comforts include a lounge with coffee and tea, and the shop does also offer pickup and delivery for the ultimate comfort and convenience. Photo estimates are available as well, though the shop always prefers to do physical estimates for accuracy.

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2

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3

2. PEOPLE AND PROCESS

In business since 2001, 5-Star moved to its current location in 2014. The shop is equipped to do dynamic calibrations in house with plans to expand to add static calibrations in the new year. More space for glass work is in the works as well. The shop prides itself on its process, clearly communicated to customers in five stages of what to expect.

“We really focus on that customer experience for the customers,” says Arnold. “It’s a pretty easy process for us, because we do it every day. But it’s a pretty emotional and high stress process for the customers that aren’t doing this every day.”

3. A CLEAN FINISH

When that process is completed, 5-Star likes to send customers off with a thorough cleaning that the shop says sets it apart in the market. Calling it a “borderline detailing” just with no carpet shampooing, waxing and the like, Arnold says the shop will clean down into the nooks and crannies like ash trays and door jambs to leave customers feeling great about their repair.

“That’s probably one of the biggest things we hear back from our customers, just how clean it is,” says Arnold. “You know, a lot of people don’t even notice the dent or how well it was fixed. We pride ourselves on the quality of our work, but what they see is a nice clean interior when they pick it up. That seems to make a big difference.”

February 2023

21

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AUTOZONE PARTS AVAILABLE IN CCC ONE®

Access OE-quality mechanical parts from Tier 1 manufacturers

Easier, faster ordering with 24/7 access and leading stock coverage

Improved accuracy for more efficient repairs

For more information visit AutoZonePro.com/Collision

©2022 AutoZone, Inc. All rights reserved. AutoZone, Duralast are registered marks of AutoZone IP, LLC or ones of It’s affiliates. All other marks are property of their respective owners. All photographic, clerical, typographical, and printing errors are subject to correction. CCC and CCC ONE are registered trademarks of CCC Intelligent Solutions Inc.

COLUMNS

SHOP PROFITS

Estimating for Higher Gross Profits

JOSIE SMITH PHOTOGRAPHY

Your profit could be hiding itself in the details It’s interesting when I ask a shop owner if they know what their gross profit is. Many will say, “Sure do.” Then after some conversation the truth surfaces and unfortunately, many have no idea.

Our gross profit is what is left over after all the work we have completed less our Cost of Goods Sold (COGS). COGS equals all our costs associated to repair the cars: Paying out for technician labor, parts, repair materials, paints, and any sublets. We should be striving for a 50% gross profit as a rule, but unfortunately many shops are in the 40% to 42% range. Here is the trouble with the latter: If these shops have an overhead expense in the 35% range, that means there will only be a 5% to 7% net profit left over at the bottom! We will discuss how to lower overhead as a percentage of gross sales in the coming months.

How can shops move their gross profit closer to the 45% to 50% range? The easiest and the most effective way is with better estimating. I have reviewed quite a few different shops’ estimates in the past twelve months. It just blows my mind how many shop owners don’t understand what good estimating looks like. They pay for estimating software and just think clicking on parts to repair or replace is all they can charge for. I heard a statement some years back that I will never forget: “I don’t mind going home tired or I don’t mind going home hungry, but I will not go home both tired and hungry.”

There are so many shops that do countless operations for free and never take the time to document and charge for them. I can hear what some of you are saying right now, “Greg, it’s all good and nice to add stuff to our estimates, but then we have to get the insurer to pay for them!” Well for starters, if you don’t ask for something you for sure won’t get a call from the insurer stating, “You missed clean and retape of the door side molding and I added it to your supplement.”

Let’s just look at a quarter panel only replacement. For decades prior to proper estimating knowledge, my uncles and I did a ton of work for free by not charging for it. We would just accept the insurer’s quarter panel replacement estimate for approximately 40 to 45 hours. After gaining

February 2023

knowledge of how to properly charge for all the not included operations, my staff now understands anything less the 75 to 80 hours to install a new quarter panel is an utter failure.

Here are just a few things that are NOT included in an LH quarter panel replacement with a fuel door: Research and print OE procedures; Safety inspections per procedures; Disconnect & reconnect electrical components; Reset electrical components; R&I LF & LR door; Make sleeves if recommended by OE; Destructive test welds; Pre & post scans; Seam sealer; Cavity wax; Structural foam removal & replacement; Structural adhesive; Expansion foam; Panel bond adhesive; R&I wheel; Torque wheel to specs; R&I rear seat belt; Color tint; Protect interior for welding; Roll back carpet; Dress welds; Feather/prime/block; Remove stone guard; R&I rocker molding; R&I trunk interior including carpet; Remove old urethane from rear glass and quarter glass R&I; R&I headliner; R&I LH roof airbag; R&I quarter vent; Multiple test fits; R&I fuel door; R&I fuel filler pipe; R&I exhaust shield; R&I spare tire & jack; R&I rear rebar for rear body panel refinish; Setback wiring harness for tail lamp & dogleg interior area; Setup/measure/body pull; Repair and refinish of pinch welds; R&I trunk lid; R&I trunk & door opening weatherstrips; Repair & refinish for each of these components due spotweld removal and welding: inner rocker, outer wheelhouse, inner wheelhouse, trunk gutter, tail lamp pocket, rear body panel, floor extension and fuel pocket; Detrim and blend of trunklid and LR Door; Refinish of entire LH aperture and new quarter backside; Mask door, back glass and trunk openings, hinges, labels and striker; Denib and buff.

This is NOT an exhaustive list, but maybe something here will make us think the next time we need to replace a welded-on panel. Please understand, you can’t just add these not included operations and expect to get paid from an insurer.

We must do them along with adding great photos (over 50% of shops need training on how to take good quality photos), material invoices, OE documentation and line notes for each one! We are in full control of our profitability.

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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

fenderbender.com

Topical

BECOMING A DESTINATION The things employers can do to attract the best talent and retain it in a difficult market

By TODD KORTEMEIER

February 2023

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I T ’ S A Q U E S T I O N every shop is asking: How can we recruit qualified technicians, and how do we keep the talented techs we have?

These questions have a myriad of answers and none of them provide an easy solution.

Shops aren’t going to stop asking those questions anytime soon. But there’s another question they can ask that might be an answer of its own: How can we become a place that techs want to work at in the first place? Rather than react, what can shops do to be proactive in solving their labor woes?

Speaking at the 2022 FenderBender Management Conference, Mike Anderson got right to the point. To grow your business, you have to grow your people. And Anderson didn’t ignore the facts, pointing out the reality that the industry is going to need 80,000 new technicians by 2024, according to the TechForce Foundation. Whether or not that target is achievable is up for debate, but the drive for new techs is on and they’re looking for work.

Today’s employees expect different things than workers even a few years ago.

Higher salaries, better benefits and flexible working schedules are how employers are differentiating themselves in the current labor market. While not all of these benefits are feasible in collision repair, the shops that can offer the most can become destination shops in the eyes of prospective employees.

For Nick Edwards, owner of four-shop Car Center out of Michigan, if you’re not starting with an established culture then it’s difficult to be attractive to the employees you’re seeking. It’s one thing for a manager to tell a prospective employee what they’re going to get out of working at a given shop. It’s another for them to hear it from their future colleagues.

“I know we’re successful when I can tell that person, go call six different people that work for us and ask them how it is,” says Edwards. “And so I feel like that I can say that confidently, I don't prep my team.

I'm not like, ‘Hey, Jim's calling, say a good word for me, he wants to come work here,’ my hope is that they can naturally call the team members that currently work here. And they say, ‘Yeah, you got to get on board. It's awesome.’”

For Edwards, that’s part of one of his business’ guiding principles. At a lot of shops, and a lot of businesses in general, the customer comes first. That’s true in a sense

February 2023

PEOPLE WANT TO BE A PART OF SOMETHING BIGGER THAN THEMSELVES.” —Nick Edwards, owner, Car Center

for Car Center, but Edwards says that his team of employees comes first. Team members are the first customer. And that in turn benefits the customers, who will be receiving great service from happy, satisfied and skilled professionals.

That well-rounded approach is key for Car Center’s goal of offering more than just a job. That means offering a place where a tech can grow a career in the collision repair industry, not just make a stop on the way to something else. And that means offering a place where an employee’s entire well-being is cared for, and they’re not just there to collect a paycheck.

“There's a lot of people that are money driven, and lots of people are driven by different things. But I think one of the things in our generation today or the workforce today, that we're seeing more than ever, is that people want to be a part of something bigger than themselves,” says Edwards.

Car Center employees are empowered to play a role in the shop’s broader, long-term success. Playing a key role in maintaining that inclusive culture is Megan Bridinger, culture ambassador for the company. Brid-

25

inger cited the company’s open door policy for employees to offer feedback or suggestions as well as regular opportunities to contribute.

“We actually do these things called the start, stop, keep meeting,” says Bridinger, “And this is basically an opportunity for each of our locations to kind of get together.

And it says in the name, what we should start doing, what we should stop doing and what we should keep doing. And especially this is really beneficial to everybody sitting in one room having a conversation.”

Edwards adds that in addition to the start, stop and keep meetings, which are geared around technicians, there also are “L10” meetings at the leadership level and at the store level, where general managers and estimators can get together and talk process. Employees also receive regular reviews, not only to monitor their performance but also get insight into the employee’s goals.

“There's four questions that we ask all the time,” says Edwards. “Do you have the tools and resources to do your job? What have I done to support you and help you do your job better? And what have I done to

fenderbender.com

Topical

FIND WHAT YOU WANT TO BE ABLE TO CREATE IN CREATING THE CULTURE.” —Adria Gonzales, owner, Pro Tech Collision

hinder your job? What goals do you want? So, asking for their feedback and how we can improve as well.”

Like Car Center, the crew at Pro Tech Collision Center in Houston believes strongly in the relationship between happy employees and happy customers. Skilled employees make quality repairs, leading to even happier customers. That’s why Pro Tech owner Adria Gonzales makes sure her employees get the training they need and want to enhance their career.

“Being an independent, you have to strategically look at how you're going to grow and leverage an independent shop for the future,” said Gonzales, whose shop received a 2022 FenderBender Best Workplaces Award. “And given the EV trends, that is something that I have asked our team, ‘Are you interested in this,’ and they are so excited that we're working on plans to get them up to speed so that we can start advertising that we have the certifications to work on the EV and hybrid vehicles out there.”

In addition to I-CAR and technical training, Gonzales says she’s always interested in any training that can help employees work better together. Open communication is a priority at Pro Tech and helps make a positive environment.

“Walking the shop, as the owner, I have a team that they know what their responsibilities are,” says Gonzales. “And they know that if they do their part, I'm also going to ensure that I have their back. I think in this world of

February 2023

people, people are definitely trying to make sure that they can have a sustainable, happy, balanced life. And that's something that I want my employees to have as well.”

That means a manageable schedule for employees, no six- or seven-day work weeks if it can be avoided. Techs have the option of extra hours in busy periods if they need it, but otherwise Gonzales trusts employees to budget their time during business hours.

The shop offers paid holidays if they fall during the week, and also offers a week of paternity leave for new fathers.

“We’re trying to bring in a younger generation to help fill the gaps of those that are also retiring out of this industry, and try and bridge that gap and share the knowledge across the board,” says Gonzales.

One of the ways Gonzales is dealing with the projected tech shortage is by thinking creatively. Maybe a prospective employee doesn’t have the collision repair experience that’s ideal in that position. But Gonzales says she’s learned to look at a person’s abilities, and not necessarily what they have done.

She cited an example of an employee in her office with a teaching background who has the outgoing personality to work with customers and also the organizational skills to keep track of several different tasks at once. She also has an employee who was a welding instructor, possessing mechanical knowledge while

26

also being able to convey that information well to a customer.

“I really look at each person's strong suits and see what skill sets each person contributes,” says Gonzales. “And by doing that, it may, if we're trying to find a role to fill, it may not be through the traditional aspects of finding someone who's already established a career in the collision repair industry. Only because we do have a shortage of resources.”

Naturally, the shops that do the best at becoming destination shops don’t have to flex those muscles often as they’ll have fewer positions to fill. That was the case for both Pro Tech, which is just a few years old, and Car Center, which has employees who have been with the company for nearly 20 years. More are literally waiting to get in.

“We have people that are, potentially waiting in the wings to join our team, just because they want to be a part of it,” says Edwards. “And they like the leadership that we have in place. And so that's a pretty rare thing I think in our industry right now.”

Both owners say they would like to do more. Gonzales hopes to be able to offer retirement plans, and also find solutions to common employee complaints such as the strain that supply chain woes put on their efficiency. Edwards was proud the company was able to recently offer short term disability benefits and he hopes to add life insurance benefits in the near future.

These are some tweaks that add to what has already been a successful environment for both attracting and retaining employees.

“Everything always comes back to a set of core values,” says Edwards. “And that is the driving force of everything we do every one of our conversations.”

Gonzales reminds that while each shop is of course looking to bring in the best employees, it’s ultimately the customer who will benefit in the end.

“Find what you want to be able to create in creating the cultu re,” says Gonzales.

“Because that is the thing that I look at is that this a customer who has a wrecked vehicle, who has to bring it in for repair, that’s stressful, and we want to make their experience less stressful and not add any more stress to the fact that they’re having to have a vehicle repaired and take the burden off of them and provide them kind of a one stop experience.”

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PROFILE

One Shop’s Strongest Bond:

Father-daughter team Cole and Swayzi Giles work side by side at their Utah shop.

By TODD KORTEMEIER

C

/

Photography by SAMUEL GONZALES PHOTOGRAPHY

ole Giles never went to school for collision repair. Those programs existed, but as a hobbyist already interested in cars and automotive repair, the shop that first hired him had no concerns that they could teach him everything he needed to know and how they wanted it done. And Giles is still at Cascades Collision in Utah, now a disassembly manager after 17 years pounding fenders.

“Seventeen years of this body work, just goes by fast, that’s all I can say,” says Giles.

While Giles received his share of on-thejob training, he came in with some acquired knowledge as well. Giles’ wife Heidi relays a story about how her husband got into collision repair in the first place. It was a chance meeting at Walmart with a shop owner who was also a fireman with Cole’s father. Cole expressed an interest in doing bodywork, and Heidi was able to confirm she knew her

February 2023

husband would have a knack for it. She’d seen him fix a dent in the family truck using just a two-by-four and a hammer.

Even with that seemingly natural talent, collision repair wasn’t necessarily Plan A for him. Giles had hoped to do more restoration work, or fabrication, working on hot rods and such. But he saw collision repair as a great place to start. It was his foot in the door and the start of his education.

Plus, he was able to keep up his other automotive interests on the side. He always had some kind of project car going at his home garage. Any free time he had, he’d be out there working on it. And perhaps accidentally, he provided the inspiration and pathway to collision repair for his future co-worker, his daughter Swayzi.

All the Giles girls enjoyed tinkering and working alongside their dad on projects, learning all about vehicle repair and main-

28

tenance along the way. But it was Swayzi that took to it the most, offering a helping hand at home, and, eventually, into the body shop.

“Ever since I was a little girl, my dad’s always had a project car out front working on it any chance he got, he’d always go into work early, so he could come home earlier than usual so he could work on his new toy that’s out front,” recalls Swayzi. “And I’d always come out, and I’m a little bit of a daddy’s girl, so I always wanted to hang out with my dad and see what he’s doing.”

From the time she was about 6, she recalls, Swayzi has spent time at Cascades with her dad. It started with going with her mom to meet him for lunch. Heidi recalls a fair amount of good-natured mischief, with Swayzi swiping the occasional stray marker to write on car windows. Even from that early age she became something of a fixture at the shop.

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February 2023

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PROFILE

“I always was known in the shop, just a cute little girl just running through the shop, everyone’s picking on her,” says Swayzi. “And I’ve always just grown up around cars. So my passion came from just seeing my dad work on them. And then building bonds with guys that still work here to this day.”

After all those years spending time around the shop, Swayzi decided to seriously pursue collision repair as a career in high school. In her senior year she did an internship at the shop, receiving school credit for it to boot. It was two class periods every other day that she got to have handson experience inside the shop. It was also a brush with the disbelief that sometimes comes from being a woman in a male-dominated industry.

“My teacher didn’t believe that I was in the body side, interning, she thought I was interning with the office ladies up front,” says Swayzi. “Like, no, I’m actually around back. I’m currently tearing off the bedside

February 2023

off of this truck. And she came back there.

And she’s like, ‘Oh my goodness, you are.’

So that was pretty funny. It’s funny when people don’t believe that I’m, you know, in this kind of industry.”

The reaction within the shop has been much different. Swayzi says her co-workers, many of whom she’s known most of her life, think it’s pretty cool what she’s doing and treat her just like another employee.

But there was a bit of adjustment in her going from that little girl running the shop getting teased to a full-fledged member of the team. With her dad a senior employee and having been in the industry for so long, they weren’t sure how far to take the typical ribbing that goes on in a body shop.

“They don’t want to, you know, cause waves, but they think it’s super cool,” says Swayzi. “And we like to give each other crap all the time, they always make fun of me because I’m short, or I haven’t learned everything yet. But, you know, we all still

30

have so much fun. And I think everyone so far that has learned that I work beside my dad, and I do this type of stuff, they think it’s super cool.”

Swayzi began working at Cascades in February of 2022, and at the time of this reporting she had been working side-byside with her dad in disassembly for about three months. She started out in the detail bay just to get her foot in the door. She isn’t certain exactly where she wants to take her collision repair career but was currently training to be a disassembly technician and that was a suitable challenge for the time being. As she noted, being somewhat vertically challenged can make it hard to work around bigger vehicles but given the right training she’s excited about doing just about anything in the industry.

For Cole, his own career suddenly has a new burst of motivation in getting to work alongside Swayzi. She had recently just moved out from the family home, so they get

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to see each other at work instead. They make a good team with contrasting styles; Heidi notes Cole is more of a quiet, head-down, getit-done kind of worker while Swayzi can be “full of so much sass” and energy.

A father of all daughters, Cole didn’t want to discourage any of his girls from getting into the industry, But he also wanted to be realistic with them about what they might be getting into. It wasn’t an easy career.

“I told her not to,” Cole says. “It’s kind of wear and tear on your body, stuff like that.

But that’s how she wants it, she liked working on cars. And I couldn’t stop her. I told my other kids like, go to school, do something different, you know. But yeah, I’m excited to see her following in my footsteps.”

Only one of the other girls expressed an interest in getting into collision repair, and Cole gave her the same talk. She listened, he said.

“I’m the one daughter that didn’t listen,” says Swayzi.

February 2023

Like the Old Days Sway zi Giles grew up helping her dad Cole in the family garage and now she does it for a career.

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LEARN

|

GROW

|

WORK SMARTER

S T R A T E G Y

THE SOP

KEEPING TRACK OF THE LITTLE THINGS

“ I T ’S T H E L I T T L E D E TA I L S T H AT A R E V I TA L .

LITTLE

T H I N GS

MAKE

BIG

T H I N GS H A P P E N.”

– John Wooden, NCAA coach That statement holds a lot of truth for a business owner, doesn’t it?

GETTY

It can be hard to make time for tasks that aren’t a part of fixing cars.

February 2023

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When you sit down and think through all the little details and responsibilities that go into running a successful collision repair shop, it’s easy to see how it’s those little things that compound on one another to make the big thing—the business—happen.

For Steve Wolfe and his partners at Diversified Body and Paint in Henderson, Colorado, the little things are seemingly endless … and, as an independently owned and operated shop, Wolfe and team had to implement their own system to manage it all from the ground up.

How do they do it? Everyone has a role to play, and no detail is overlooked—from making the coffee in the morning and ensuring there’s bottled water waiting for customers to keeping the shop clean, the social media pages updated, and making sure the employees all have what they need—it’s imperative that everyone does their part so nothing falls through the cracks.

As told to LINDSEY GAINER

FINDING A SYSTEM THAT WORKS There are lots and lots of small details to be successful in today’s business, on top of the most important job of all—taking care of your people and the things that keep them moving, like estimates, payroll, parts, etc. Take care of your employees and they, in turn, will take care of your customers. Details that affect the customer are always our priority, big or small.

Everybody in the shop has things they’re responsible for, but we’re not a corporate store—we’re independent.

February 2023

So, as owners, we’ve carried a lot of these little roles on our own for a long, long time. In a car shop where you’ve got 20-plus corporate-owned stores, for example, it’s very cookie cutter.

You walk in the door and the receptionist makes the coffee and this and that. But in our world, because we’re independent, we wear a lot more hats.

We have lots of checks and balances along the way to make sure nothing is missed, and we have to regularly assess responsibilities and workf lows to ensure everything that needs to get done is being handled.

MAKE A LIST…AND CHECK IT TWICE Ron Kuehn—president of Collision Business Solutions and the leader of one of the 20 Groups I’m a member of— gave us all a sheet of paper (actually, it was three pages!) to write down in detail who does what in the business.

All of the owners filled them out, and it was eye opening to see how much we all do day to day. As we went down through our lists, it was crazy what we discovered! We’ve delegated a lot, but seeing how many of the “little things” we still handle was really insightful.

His challenge to us now is to work on giving more away, to continue to work on delegating.

I’d recommend every owner take the time to write out a list like this, both for themselves and their employees, to track what’s being done in the shop and by whom. Not only is it important to know who does what and hold people accountable for their responsibilities, you need to make sure nothing is slipping through the cracks

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and have a contingency plan in place for when an employee needs time off.

When that person is away, who’s responsible for stepping in to handle their work?

No task is too small to include, either. Making the morning coffee may seem like a relatively unimportant thing, but the reality is that the little things really do matter. You can be the best of the best at what you do, but if you let the little details slide it can really affect your business in the long run. People notice those kinds of things. Customers’ expectations are high, and we always try to put out a product to match. A big part of that is not neglecting the little things!

We’re big into checks and balances in our shop, too. Our estimators carry the job from cradle to grave, making sure no detail is missed. Checks and balances are set up for each and every department for accountability—sign-off sheets with supervisor approvals and spot checking are a daily occurrence. It’s all about quality control. We live by the rule, “pass no defects,” meaning you always double check your work before passing it onto the next person in line.

A FINAL WORD OF ADVICE If I could give a new shop owner—or any owner for that matter—one piece of advice, it’d be to join a 20 Group or something similar, to share business benchmarks and ideas among your peers.

You’ll be amazed at how beneficial the collaboration is in figuring out the best ways to run your business—in the big and small ways alike.

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STRATEGY

CUSTOMER SERVICE

THE AMAZONIFICATION OF COLLISION REPAIR

How businesses can help meet the demands of the modern consumer

W H E N Y O U N E E D T O B U Y something for your home or life, you’ll likely check Amazon first. The company offers an easy-to-use website and app, great prices, quick delivery and a smooth customer experience. You know what you’ll get when you do business with Amazon.

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

February 2023

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Amazon is one of the largest companies in the world, with net estimated sales of $127.1 billion in the third quarter of 2022, according to data from Statista. They’ve grown into a large and profitable business through the modernization of its operations.

The seamless experience a retailer like Amazon has created is something that customers have grown accustomed to when doing business. While collision repair shops aren’t able to deliver door-to-door repairs in two days, they can mimic some of the benefits users experience with a modern company like Amazon. That experience can help build a modern collision repair shop.

“When it comes down to it, customers want the ability to know and control what’s going on with their vehicle. They want a smooth shop repair experience,” says Ryan Marrinan, now an application engineer with 3M’s aftermarket auto division who is a former collision repair specialist with 20 years of experience working in two auto body shops in Minnesota. “The way the world is going requires a more modern approach for shops. We must realize the last eight years have become much more accelerated, moving toward an online experience. If shops don’t evolve and modernize, they’ll be left behind. The customer is different, and cars are more advanced; it’s up to shops to keep up, and using an ‘Amazonification’ approach could help.”

Customers today are used to instant results based on the offerings of online retailers, and you can offer services to help meet current expectations. Here are a few places to start.

SET UP AND USE 24/7 ONLINE SCHEDULING Having to call a shop to schedule an appointment is one more point of irritation for your customer. The good news is that today’s online software makes the process easier and creates a better customer experience.

You can eliminate some of the “human” elements of this process by setting up online scheduling. Many shop software providers offer this kind of functionality.

With scheduling software, customers can conveniently go online and schedule or change appointments. Your customer service team can go online and see what activity is happening with appointments.

You can customize this software to whatever makes the most sense for your shop. You can add automated appointment

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reminders through text and email so customers always know what’s happening.

Your customers don’t want to call to check, change, or get updates about their appointments—setting up online scheduling software is a relatively easy way to provide an Amazon-type experience.

HAVE EXTENDED HOURS WHEN IT MAKES SENSE Amazon is extensive with its ability to deliver to its customers worldwide and do so quickly.

Online retailers are obviously open at all hours, able to cater to a customer at any time.

Today, your customers have a busy life.

They have work, family, businesses and more. Your customer would love to be able to schedule an appointment and/or drop off their vehicle during regular hours, but that’s not always possible. Offering extended hours where it makes sense can capture more of these customers. You could elect to extend hours during the holiday season, the summer or when you expect the shop to be busier than other times.

You don’t have to offer 24/7 hours all the time, but if you did a time audit, you’d probably find opportunities to offer extended hours and make your customers happier.

PROVIDE PHOTO UPDATES There’s something to be said about building trust with your customers. One way to build trust is by demonstrating to the customer your efficiency in a way they understand. People are visual in nature, and providing photo updates is an incredible way to build trust.

Showing your customers what repairs are needed and why through photos builds trust. There’s clarity for the customer, and the extra touch of having photos separates your shop from others.

People purchase on Amazon at an accelerated rate because of the visualness of the platform. Customers can not only see multiple photos of items but can even see photo reviews from customers. It’s built trust and is a strategy shop owners can add to the processes.

“The visual appeal is what customers today are looking for. Auto body repair is still a visual business, and customers want to see what’s going on,” says Marrinan.

SET UP AUTOMATED COMMUNICATION Communication makes or breaks a business.

The way and frequency at which your shop

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communicates will make all the difference and determine whether you have lifelong customers. Just like customers are able to track packages to their doorstep, they might like to track their vehicle through its repair process as well.

“Some customers like to have daily updates,” says Marrinan. “How you communicate is important. You need a system and software that’s open to communicating with the customers as they expect. Communication is often more important than speed. Communicating that with customers will go a longer way than you getting their vehicle back quicker.”

Marrinan notes that his own vehicle was in a repair shop recently, and the text and email communication the shop provided made him want to recommend the shop to others. He says it was a great customer experience.

You can create a better communication experience using automated systems and software. The ability to schedule appointments is one part of a good communication strategy, but it’s more than that.

Customers want updates on where their vehicle is in the process, any unexpected circumstances that add more time, any unique situations that arise during repair, changes in charges, and anything else they’d like to know. All of this communication could be set up and managed with software.

“It’s not rocket science; communication with your customers is crucial. Take a look at the reviews on our site, and you’ll see how and why we prioritize good communication,” says Ron Perretta, owner of Professionals Auto Body. “It’s ridiculous for a customer to have to call the business that they are spending money with just to find out the status of their car. Sadly, that’s what’s typical in our industry.”

MODERNIZE YOUR SHOP “Some other ways worth mentioning include proper training for shop staff, management of the overall repair process and billable materials, and having the products required to repair vehicles per OEM recommendations,” says Marrinan.

The bottom line is that using Amazon’s customer experience principles can help collision repair shops build stronger businesses. Your customers will have a better experience, making them become word-ofmouth marketing for your shop.

See which of these strategies you can implement in your shop, and it will improve efficiency.

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STRATEGY

CASE STUDY

THINKING ABOUT THE FUTURE

S U CC E S S I O N P L A N N I N G—M U C H

like life insurance, wills, and other future-oriented activities—can be hard to prioritize. As a business owner with a to-do list a mile long, it can be hard to find time to do what needs to be done now, let alone carve out time to plan for the future.

One operator’s non-linear path to forming a succession plan.

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By LINDSEY GAINER

February 2023

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But if there’s one thing that every longstanding business has in common it’s this: they’re all the result of a successful transition (or sometimes multiple transitions) of ownership. Such transitions require a solid, strategic plan that can take years to build and execute—which is why it’s never too early to start the planning process for what will come next. And even the best-laid plans hardly ever play out exactly as anticipated, as Kathy Mello—owner of TGIF Body Shop in Fremont, California—learned firsthand.

THE PROBLEM Life is unpredictable, and succession is a long, complicated process.

Before COVID entered the scene in 2020, Mello was well on her way to passing leadership responsibilities over to her son, Jason Cocco, who is staged to take over the business upon her retirement. But the past several years have presented unforeseen challenges for Mello, as they have for many shop owners throughout the country.

“Our progress has been stunted by several circumstances,” explained Mello.

“First it was the cancer journey of my husband, which required my presence and care. Then, it was all the uncertainty presented by COVID and the shutdown, which we have managed through. My life was put on hold by a life-threatening hospital stay after contracting COVID early in the pandemic as well, and that required an extended recovery. Now, COVID-related regrowth is stunted by the technician crisis. I know that we are not alone in having to schedule out as a result.”

But, despite the hardships she’s faced both personally and professionally, Mello continues to look to the future with hope and determination. The succession plan will continue to move forward, albeit more slowly than initially anticipated.

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THE SOLUTION Start earlier than you think you need to, and get help putting a strategic plan in place.

No matter what stage your business is in, it’s important to consider what will come next.

For Mello and her husband, that meant evaluating the interest—or disinterest—of each of their four children in taking over the shop.

“Whether you’re selling a business or succeeding to others it requires a great deal of focus and a lot of crossing of t’s and dotting of i’s,” says Mello. “I recommend that the sooner you start the process the better, because, as we have found, life can get in the way of progress. I believe that attention needs to be given to both the personal/ family side of things as well as seeking the guidance of professionals who have vast experience with such transactions.”

From the start, Mello has utilized the expertise of professionals well-versed in succession planning, and she recommends other shop owners do the same.

Having someone to guide you through the process is invaluable. Accountants, lawyers, and other owners who have completed their own successions can all be hugely helpful resources.

As a first step, Mello hired an independent party to interview each of her and her husband’s four children to explore whether any of them had an interest in succession … and if so, how they wanted to be involved. From there, they were able to start formulating a plan.

“Only one of them—aside from Jason, who has been running the day-to-day—is still in the industry and works and lives several hours away,” says Mello. “They have all expressed autonomy yet support for the family-founded business, and the opportunity for more involvement in the future will remain a possibility at the discretion of Jason, once the torch is passed.”

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THE AFTERMATH Prepare to be flexible and make adjustments as needed.

For the time being, Mello’s succession plan has been placed on the back burner while more urgent matters are addressed … namely, the technician shortage.

“The focus at the moment is to launch a technician training program sanctioned by the department of apprenticeship in California,” says Mello. “It’s an earn-while-you-learn program and should open up a pipeline of talent. Once that is rolling, we will return to the focus of business succession.”

In the meantime, Jason holds sweat equity shares in the business until the “fullblown” plan for financial succession is complete. When the time comes to financially complete succession, Mello says she will once again seek professional guidance on how to best proceed.

THE TAKEAWAY Don’t let the future sneak up on you…start planning NOW! As business author Alan Lakein once said, “Planning is bringing the future into the present so that you can do something about it now.” Succession planning is the ultimate example of that!

Even if you’re years away from wanting to retire, it’s important to start thinking about that next chapter now, well ahead of time. Planning for succession involves extensive legal, financial, and operational considerations that require a great deal of forethought and counsel, regardless of whether you’re planning to sell your business or pass it on to someone. Life will happen and priorities will shift, but a solid foundational plan is essential for your business to thrive for years to come.

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STRATEGY

ADAPT

EV BATTERY RECYCLING NEEDS INNOVATION

B E T W E E N F U L L B A T T E R Y- E L E C T R I C

The current infrastructure set and technologies used for EV battery recycling will not be sufficient if demand for the vehicles continues to spike, as industry experts suggest it will

and hybrid plug-in variations, there were around 7.2 million electric vehicles on the road globally in 2019, up from a measly 20,000 in 2010, according to the International Energy Agency, with the U.S. accounting for around 1.5 million.

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By NOAH BROWN

February 2023

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Electric vehicles have become increasingly popular in large part due to significantly reduced impact on the environment; a report from the International Council of Clean Transportation shows that electric vehicles in Europe produce, on average, 50 percent fewer life-cycle greenhouse gases over the first 100,000 compared to internal combustion engine-powered vehicles.

EVs aren’t totally green from the getgo, though. The batteries that power electric vehicles are significantly larger than those found in ICE-powered cars and require extensive mining for materials such as cobalt and lithium, which produces a large amount of pollution.

Battery materials are only going to get harder to come by, too: The IEA projects there will be upward of 145 million EVs on the world’s roads by 2030, meaning demand for batteries will only grow exponentially in the coming years.

And the challenge facing battery producers doesn’t end once a battery is placed inside a vehicle.

Extensive battery recycling will need to become much more prevalent than it already is for EV adoption to become less of a fad and more of a long-term, viable solution for the industry.

COMPLEX RECYCLING Per a report from Reuters, researchers in Britain and the United States have found several ways to recycle EV batteries “that can drastically cut costs and carbon emissions” while also bulking up global supplies “for an expected surge in demand.”

With materials such as cobalt and nickel, which are expensive to mine, being able to retrieve those materials from a battery would save a lot of time, money and greenhouse gas emissions.

“We can’t recycle complex products like batteries the way we recycle other metals. Shredding, mixing up the components of a battery and pyrometallurgy destroy value,” Gavin Harper, a research fellow at the government-backed Faraday Institution in Britain, said.

Pyrometallurgy is the practice of retrieving metals from a substance using blast furnaces. Between that and other current methods, which include “shredding the batteries into very small pieces” and processing those shavings into necessary

February 2023

material, current recycling practices aren’t able to adequately recover a large amount of materials from current EV batteries.

According to Reuters, though, Researchers from several British universities working through the Faraday Institution, Britain’s state-sponsored research lab, have “found a way to use ultrasonic waves to recycle the cathode and anode” in an EV battery without the need for shredding.

The tech recovers cobalt, nickel and manganese from the cathode powder of a battery, and it recovers graphite from the anode powder. One of the researchers working on the project says the process of separation via ultrasonic waves could save as much as 60 percent on materials when compared to the cost of “virgin material.”

Researchers also say the method can process up to “100 times” more battery material over the same period as more conventional recycling methods.

Across the pond, the U.S. is also developing technologies through a Department of Energy-sponsored program

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known as ReCell that focus on thermaland solvent-based recycling methods that, according to the Reuters report, are “promising.”

Jeff Spangenberger, head of ReCell, says the U.S. doesn’t produce much of the cathode powder domestically at the moment, so finding more efficient ways to recycle batteries in the country could make American manufacturers more self-sufficient in the EV market.

FEASIBLY PROFITABLE As it stands right now, the current infrastructure for EV battery development is not at a sufficient level to sustainably keep up with impending demand.

If OEMs want EVs to become the industry standard, current methods for battery recycling alone aren’t going to cut it.

“To make lithium-ion battery recycling profitable, without requiring a disposal fee to consumers, and to encourage growth in the recycling industry,” Spangenberger says in the article, “new methods that generate higher profit margins for recyclers need to be developed.”

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STRATEGY

RESEARCH, REPAIR PROCEDURES AND YOU With today’s advanced vehicles, there is more research needed than ever

By KIM ANZI CONSTABLE

February 2023

That means knowing how to research changes and upgrades in repair procedures.

Researching repair procedures and finding the correct information is essential to fixing vehicles. It’s not just a quality issue; it’s a safety issue.

Shop owners and technicians need to know how to access resources and services

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T H E S T A T E O F C O L L I S I O N R E P A I R is constantly changing. The next decade will usher in new drivers and new technologies on board already complicated vehicles.

Collision repair requires shops and technicians to stay up to date on all the changes in the industry.

to help find the necessary procedures for new vehicles. The state of access for OEM-specific procedures and how shops stay updated when they change are evolving.

“It’s critical to know how to research repair procedures. I used to tell people that we worked on cars—now we work on computers on wheels,” says Dave Streen, a 20-year industry veteran who sold his shop during the pandemic and is currently a consultant to the collision repair industry. “Cars have evolved so much that if you’re not staying cutting edge, you’re following behind. If you take any brand, they don’t want anyone performing improper procedures because it tarnishes the brand and industry. It’s important to research the proper repair procedures.”

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Here’s what you need to know about researching repair procedures and how always to find the information you need to stay updated on changes in the collision repair industry.

STAY INFORMED ON THE INDUSTRY The internet has changed everything. It’s given us access to information at our fingertips if we own a smartphone. Today, shop owners have access to YouTube, articles, podcasts and other forms of information online.

One way to stay up to date is to access information online, and the good news is that a lot of it is free. Shop owners can set aside educational time each week to study the latest repair procedures and do so from almost anywhere.

“Understanding how to find the best repair procedure information is challenging for us as shop owners,” says Stan Medina, shop owner of Certified Collision Works in Corpus Christi, Texas. “We’ve found that you have to figure out how to research your niche. The industry is generally behind, so understanding how to research your niche helps you stay ahead. We work hard to research the best repair procedures and create credible documentation.”

Pick a good podcast, find your favorite collision repair YouTube channel, and read blogs and articles. Study and subscribe to trade magazines and publications such as this one. As changes happen in the industry, these sources of information update their content, and thus, you. A famous saying says, “An expert is a student first.”

You can’t learn about the latest repair procedures without studying them. Stay current on the newest models of vehicles and how to repair them. Pick your best sources of finding information and use them every week.

“You can get a handful of information for free reading the free trade magazines like FenderBender magazine,” says Bill DeCarr, owner of Bumper to Bumper Auto Body & Collision Service in Syracuse, New York. “Of course, the dealers you buy parts from will supply you with an abundance of information—OEM spec sheets and panel replacement procedures. There are a handful of websites with free info. For the latest information, you can go to the manufacturer directly and pay per vehicle, month, or year.”

One of the most valuable resources is your fellow shop owners. A 20 Group or other

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kind of business association is a great place to share information about trends relevant to your local market.

TAKE TRAINING COURSES There is plenty of free information, but there are also many great training courses you could pay to take offered by organizations like I-CAR. In the 2022 FenderBender Industry Survey, 76% of all respondents reported paying for I-CAR training for their employees. A similar number reported taking it themselves. One way to run an efficient shop is to have an informed shop.

Half of all survey respondents reported paying for OEM-specific training. There may even be training offered by vehicle and parts manufacturers you and your employees can take. An investment in training courses will pay dividends as your team will be updated on the latest changes in the industry, and your customers will see that because you’ll be able to handle any car.

“I research and study new repair procedures two to three times a month. If a car is coming in and I need more info, I’ll take the time to research. I research as much as I need it,” says DeCarr.

STAY UP TO DATE ON OEM DOCUMENTATION AND PROCEDURES Speaking at the 2022 FenderBender Management Conference, Mike Anderson stated that there is another pandemic coming for collision repair: A pandemic of poor estimating. Anderson went on to give an example of a typical repair that, if researched properly, would require 40 hours of reading time to be done the right way. Research has to be a shared responsibility.

OEM procedures are the best way to get a vehicle back to its original condition.

Vehicles today are more sophisticated and constantly getting updated. OEM procedures are a vital part of the repair process, and staying up to date on documentation and procedures is essential.

Finding the latest updated OEM documentation may be challenging, but it’s out there. You can assign a member of your team to research OEM documentation and procedures and find the most updated information.

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“Who’s the expert on that brand, make, or model? The person that made it. The first step is to go straight to the manufacturer’s resources. Follow their procedures—the goto is the OEM standards. They’re the ones that know,” says Streen.

The I-CAR website offers a portal to where to find repair procedures, which often comes with a fee. For shops that don’t hold a certification for a certain manufacturer, short-term subscriptions may be available to service a one-off vehicle. A vast majority of today’s repairs require at least some kind of research.

HIRE EXPERT COACHES AND CONSULTANTS The digital information age also means you can hire experts and get virtual or in-person training.

One growth strategy shop owners can use to stay updated is hiring coaches and consultants.

You may need more time to research the latest repair procedures, and your employees may be busy repairing cars. One way to stay updated on changes in the industry is by hiring a coach or consultant to get you up to speed.

You can hire a coach or consultant at a schedule that works for you and have them train regularly. You can have group training to make the process more efficient. The good news about hiring coaches or consultants is that you can do it in a timeframe and training style that works for you.

Before you hire a coach or consultant: • Do your research.

• Make sure the professional you hire is updated on the latest collision repair procedures and has a lot of experience working with shops.

• Ask the professional about their experience in the areas where you want to be trained and ensure you’re satisfied with their answers.

Knowing how to get the information needed to stay updated on the latest repair procedures is vital to ensuring your shop is constantly repairing vehicles to their best. Your customers want to do business with a shop that stays up to date on the latest and best repair procedures. Customers want to do business with a modern shop that makes the repair process smooth.

Learn to find the information you need and implement it in your repairs.

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SPONSORED CONTENT

FROM OUR PARTNERS

Keys To Loaner Fleet Profitability

BY LAURA TIERNEY

Sales Director at ShopLoaner ltierney@shoploaner.com

I speak with several shops a day about service loaner fleets. While

vehicle is returned. We recommend taking a credit card and authorizing a predetermined amount on the card via a PCI compliant service. If a toll or ticket appears later, the card on file can then be charged.

some of these shops run 10-20 loaners or more, others are working to understand why they should have loaners at all. I have found the shops that have large loaner fleets have realized loaners can increase both average revenue per RO as well as total RO revenue and car count. For example, one of our customers, John Cayer at Premier Auto Repair, recently experienced an 85% increase in average RO and increased his car count significantly by adding loaners. His experience was so positive that he quickly increased his fleet from two to seven vehicles.

What I try to do when I speak to shops is to explain the keys to achieving similar revenue results while also ensuring costs and risks around loaners are minimized. Below I provide a summary of some keys to ensuring shops maximize the return on their loaner fleets.

ADVERTISE THE AVAILABILITY OF LOANERS One thing is very clear: customers love loaner vehicles. Although independent repair shops vary in how they track customer satisfaction, car dealerships are very focused on this issue. They measure it using an industry metric – the customer satisfaction index, or CSI. Dealer service departments know that a higher CSI translates to more service revenue and higher customer loyalty.

Loaners also help expand your geographic footprint. We have heard from shops about customers bypassing their garage to drive to a shop farther away because the competing shop MAXIMIZE FLEET UTILIZATION advertised, they provided a loaner. The promise of The primary key to maximizing the value of your fleet is a loaner was enough for the competition to poach “Ensure you to ensure you have high fleet utilization. You do not want customers who would normally take their car to a to have cars sitting on your lot since each vehicle in your closer local garage. Furthermore, many customers have high fleet fleet represents a revenue stream. Keep the cars moving. have longer commutes requiring a car and are not utilization.”

Shops do this by advertising the availability of loaners able to easily commute to and from your shop. to bring in new customers and minimizing the number Providing a loaner allows these distant customers —Laura Tierney of days a vehicle remains with the customer after the to utilize your services without major disruptions to RO closes out. As a best practice, we recommend shops their schedules. clearly state on the rental agreement that a customer Providing your customer with a vehicle also will be charged a certain rate/day for each day they keep increases your share of the local market. Obviously the car after they have been notified the RO is closed auto shops compete for customers. Why a customer out. Adding this notice goes a long way to ensuring cars comes to your shop versus another shop is driven by get returned quickly. One of our customers servicing high-end luxury several factors including perceived expertise, your shop’s reputation, brand stated their overdue vehicle days decreased over 90 percent once and convenience. Loaners are part of the convenience factor. Customers the customer realized they had to pay for driving the car beyond the RO need to get to work, take their kids to practice and go to the grocery closeout date. store. Providing a loaner alleviates all the convenience barriers to a customer bringing their vehicle to your shop.

KEEP TRACK OF INCIDENTALS AND CHARGE WHEN APPROPRIATE Fuel and vehicle damage are costs that the shop will absorb if the check CONCLUSION in/check out process does not ensure fuel levels and pre- and post-rental Investing in a loaner fleet is an important decision. While issues like damage is checked and recorded. Tolls can also be extremely costly correct fleet sizing and fleet utilization are critical, loaner vehicles if not monitored closely. We recommend that each loaner agreement are proven to increase revenue, drive customer satisfaction and build state in bold language that the customer will be charged for fuel used, customer loyalty. As shops look for new ways to build revenue and vehicle damage (including smoking), excessive cleaning and any tolls. differentiate themselves from the competition, service loaners are an Tolls and tickets can be tricky as they most likely come in after the avenue that shops should be exploring.

February 2023

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FROM OUR PARTNERS

Consolidation, Training and Technology: Three Trends to Watch in 2023 Steve Leal shares his insights on aftermarket industry developments to follow in the next 12 months.

BY STEVE BD SERVICES , INC. (ISI)

The complexity of cars has increased and will continue to grow as more electric

With rapid advancements in vehicle technology, repair procedures, processes and requirements of most makes and models change from one year to the next. This applies to internal combustion engine vehicles but is especially true for hybrid and electric cars. In this changing environment, the importance of certification is reinforced.

Franchisors work with leading government and industry bodies to ensure that franchisees and their teams are trained to safely handle the most complex repairs and to OEM specifications. Shop certification demonstrates to customers and insurance partners that the team has been trained to manage the most complicated mechanical and collision repair requirements based on manufacturer specifications.

vehicles are on the road, and consumers expect innovative technologies in all aspects of their lives. The collision repair industry has done an excellent job of staying on top of OEM developments and helping customers with their aftermarket needs. But technology is ever-changing and requires continuous investment in equipment, processes and training as new repair and maintenance needs arise.

The last three years have proven that accurately predicting the future is difficult. However, I believe three evergreen trends in our industry will continue to shape the auto body shop business.

BUSINESS CASE FOR CONSOLIDATION The aftermarket industry has been largely recession-resistant, but body shops are not insulated from failures. Over the years, many independent body shops have been actively looking at aligning their businesses with an established franchise network, such as ProColor Collision. It allows them to remain current on the changing trends and create value for their clients through enhanced customer care and better service standards.

Being a franchisee has several advantages, the main one being that you are in absolute control of your business while your franchisor works behind the scenes to facilitate your success. Most established franchisors run a successful business model that has already been extensively tested, and the kinks worked out. There are several benefits of joining a franchise network: • Brand recognition and credibility among customers • Easier access to insurance providers/fleet companies • Reliable supply chain management and costs savings • Global OEM relationships • Greater access to financing • Marketing support throughout the year • Time-tested operational strategies and workflow improvement methods One of the most significant advantages of aligning with a franchise network is access to continuous training and certification for your staff and technicians.

TECHNOLOGY Today’s vehicles are equipped like computers on wheels, with new technology being introduced every six months. The aftermarket business has been shifting gears and accelerating to adapt to these new developments, such as driver assist systems, adaptive cruise control, autonomous driving sensors and infotainment setups. We also have seen increasing adoption of artificial intelligence and computer vision systems to streamline diagnostics and inspection processes in some critical aftermarket operations.

Electric vehicles may take some time to reach parity with internal combustion engines in terms of sales and adoption. Still, they will continue to present exciting opportunities and questions for the industry. The challenge for the aftermarket industry will be if it is prepared to repair these sophisticated machines. In case of a collision, electric vehicles demand a completely different approach than just tending to dent repair.

Likewise, we’re several years away from fully autonomous vehicles on the road. But it’s never too early to prepare for the next technological evolution and understand how it might disrupt the aftermarket industry.

The automotive aftermarket industry is not immune to the rapid changes in every sector. Body shops must understand the latest auto manufacturing and technology developments to support their customers better. As consumers expect more from their vehicles, OEMs and technology companies ramp up development to meet demand. In this situation, franchise networks are better positioned to pivot and adapt and support their customers.

TRAINING AND CERTIFICATION Automotive technology is changing rapidly, and the aftermarket industry needs to ensure that technicians are fully trained to repair the most modern vehicles.

Training alone represents a high cost for independent body shop owners. Most franchisors run extensive first-time and refresher training for the franchisee’s staff – an ongoing process to ensure that they remain on top of modern automotive trends. In addition, knowledgeable franchisor teams train shop staff to improve the customer experience and business operations.

February 2023

Steve Leal is the President & CEO of Fix Network World, the leading global automotive aftermarket services network which includes ProColor Collision. The family of brands spans over 2,000 points of service internationally. In the United States, Mondofix, Inc. has granted an exclusive license to 79411 USA LLC to the FIX AUTO brand.

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Improving application and efficiency of your UV primer

BY ANDREA HINDT

Although UV products have been used in the automotive industry since

Since UV products are photochemically reactive, meaning they begin to cure as soon as they are exposed to natural daylight, it is important to utilize an opaque spray gun cup.

The SATA RPS cup system offers a UV cup option, and is available in one size 0.6L. Utilizing the black UV cups for spraying UV products ensures the product has not been exposed to light that could potentially alter the characteristics of the product and its performance. With the spray gun cup preventing light exposure, you can now pour UV primer in a cup, mount it to either the to your spray gun and spray all day.

The product will have a much longer pot life than traditional primers, allowing for no wasted material going into the waste drum.

Other products that help when spraying UV is a black rubber air cap cover that keeps light from hitting that little bit of product left on the tip of the needle. Using one of these caps between coats and while the spray gun is hanging between repairs ensures product and spray gun performance. That little drip on the needle can harden in daylight and end up being dirt in the repair you’re priming.

the early 2000s, their popularity seems to come in waves.

Initially not only were these products new, unproven technology, but a major hang-up for the end user was the need for a new UV light to cure the product. For decades prior, shops had become more adept at using IR curing lights to shorten dry times and increase throughput. Now this new product required additional cost to cure it along with safety precautions due to exposure of UV light.

Fast forward to today and enough time has passed that UV has found its place in our business. There are more UV curing light options than ever before. There’s also a wide variety of UV products in the market from all kinds of manufacturers. Those products range from primers to clear coats to spot putties. In this article, we will primarily focus on UV primers since they are the most relevant product in our business. I also prefer to focus on products designed by what we’ve come to address as “Premium Paint Manufacturers.” These products have good technical information available and oftentimes have a full paint system warranty associated with them.

The application process for UV primers is not too far off what we would consider standard; however, I strongly suggest reading your paint suppliers technical data sheet. This is to ensure you’re using the proper spray gun setup to achieve targeted film builds as well as flash times and proper cure times.

SATA has two fantastic options for spraying UV primers. The first being the SATAjet 100 B RP 1.1UV. This spray gun nozzle set has been specifically designed to spray UV products. Working closely with the paint manufacturers, SATA created a setup that will atomize the product fine and even to ensure an even film that is controllable for thickness. The superior material distribution throughout the pattern avoids thickness variations that can cause dark spots and lead to uncured product. As I mentioned prior, these products are slightly pigmented and will show a blotchy appearance if sprayed improperly or with inconsistent film build.

The second option that SATA offers is the SATAminijet 4400 B HVLP or RP. The benefits that come from spraying not only primer, but UV products through the minijet is profound. Again, check with your paint manufacturer for specific recommendations. The most common setups for spraying UV primer with the minijet 4400 are the 0.8SR or the 1.0SR. Both options offer unparalleled atomization and material distribution throughout the pattern. Additionally, the SATAminijet offers the lowest amount of overspray from any paint gun. That feature alone allows a technician to utilize less material as well as less masking. Please be sure to check out the SATA by DanAm Company YouTube channel for demos of this process.

February 2023

A couple things to know about UV primer characteristics.

• I like to group UV products into two categories. The first being true UV cure technology that requires a UV light with a specific spectrum of UV light to cure. These products are most commonly found in Ready To Spray (RTS) form. They typically require a quick shake or stir before pouring into your RPS cup. The second being what can be referred to as “dark cure” UV products. Dark cure UV products are also cured with a UV light for maximum speed, but areas where the light does not hit will cure in time. Those products often require a catalyst or hardener addition prior to spraying them.

• Most UV products are semi-transparent. Being as they are cured with light, the product must have a decent amount of transparency to allow the light to travel down to the bottom of the film.

• UV products still have solvent that will need to evaporate out of the film during flash times and the curing cycle.

• Due to the footprint on the UV curing light, UV products are typically focused on small, spot priming repairs. Usually, the maximum size repair is around a 12”x24” area. Larger footprint portable lights are available as well, all the way up to UV cure spray booths.

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COLUMNS

COLLISION COURSE

Well, No One Asks For That

JOE GRETO

To get everyone paid, shop owners need to learn to keep asking My least favorite phrase out of any insurance representative’s mouth is, “Well no one else asks for that,” or, “I cannot pay more than that because we only pay the prevailing rate in your area.” I know we have all heard these phrases and if you haven’t then that tells me you are leaving money on the table.

Insurance premiums have risen drastically, and so has the cost of repairs, but unfortunately what insurance companies pay body shops to make good on the promises they have made to their customers has not kept up with inflation and the rising cost to repair a vehicle and the knowledge to repair vehicles. The insurance companies complain about the rising cost of repairs and blame body shops, but it’s not the body shop’s fault. It’s the fault of manufacturers and technology. Insurance companies haven’t kept in line with inflation on what they pay body shops per hour, and we all know it’s wrong. In my opinion I equate insurance companies to the mafia at this point.

Body shops are being extorted by the insurance companies with the excuses of “prevailing rates” or a “prevailing wage” but let’s look at the definition of what a prevailing wage is per the U.S. Department of Labor. “The prevailing wage is defined as the average wage paid to similarly employed workers in a specific occupation in the area of intended employment.” If you are some person off the street this may seem fair, like the insurance companies are all paying body shops equally so there isn’t any discrimination in pay. This isn’t correct because all body shops are not equal, just like the roles of body shop employees are not equal. Some shops have more training and certifications to repair vehicles and should be able to collect a higher wage. A shop that can section a Porsche should be able to collect a higher wage than a shop that does not even have a spray booth. A painter versus a prepper or a tear down technician versus a senior collision technician make different wages so why is it OK for the insurance companies to lump everything together and pay a single “prevailing rate?”

Let me make this statement again. Body shops are making good on the promises insurance companies make. Insurance companies need us and depend on us but refuse to pay a fair rate for what the body shops are providing. If we try to get together and fight them by talking to other body

February 2023

shops about what we are charging, then they throw out that we are “colluding” against them.

So, it’s OK for the insurance companies to strong arm body shops by price fixing, but the moment we try to stand up and fight for ourselves the insurance companies want to say we are colluding?

Shame on the insurance industry because they are only thinking about the bottom line and not the promises they made to their customers.

So how do we combat this on an everyday basis?

By continuing to ask for higher rates of pay. By continuing to ask for the insurance companies to pay for what we use for repairs that are a given in our industry like body filler. By asking insurance companies to pay for the direct repair cost that we incur when we repair a vehicle, not just what they want to pay. The insurance companies used to never pay for cover car, flex additive, hazardous waste, seam sealer, setup & measure, but because as an industry we continued to request it, they finally decided to stop fighting us on it and just add those items to the estimates. And if for some reason they aren’t added to the estimate, they typically don’t fight us over supplementing it because again as an industry we didn’t give up requesting those items.

Now we need to continue requesting all of our direct repair costs that we incur and continue to request them even if the insurance company continues not to pay them. If we don’t request payment for what we do or provide, then that gives the insurance company the opportunity to continue to deny other body shops those costs with the reason of, “Well no one else asks for this.” Then a vicious circle continues of body shops not getting paid for work completed or products provided.

I know you are thinking we shouldn’t have to go through this to get paid for what we are using or doing, and you are right. It’s not fair, but this is where we are at, and we have to look at how we can combat this type of treatment from the insurance companies. Body shop organizations are pushing hard and trying their best to get rules and regulations changed, but they need boots on the ground, meaning body shops, to do their part by continuing to ask for payment on work performed and products provided and used. It’s a group effort, and my shop may only be a drop in the bucket, but eventually if we all work together that bucket will overflow.

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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

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COLUMNS

DUE PROCESS

Finding Balance in an Unpredictable Work Environment

How shop owners can get more things on a predictable schedule In the collision repair industry, we deal with a lot of unpredictability. Parts availability, insurance claims, and the volume of work can all fluctuate on a day-to-day basis. This can make it difficult to maintain a consistent workflow and ensure that our technicians and administration are productive.

However, there are some things we can do to help find balance in an unpredictable work environment.

By being proactive and flexible to an alternative approach, we can adapt to whatever changes come our way and keep our businesses running smoothly.

Time blocking gives your team the ability to be proactive.

Time blocking is an incredibly efficient way to manage the workload of a collision repair business. Not only does it allow you to experience a predictable balance between work, life, and leisure, but it also is an effective means of avoiding the tendency to be constantly “on-demand,” reducing the accompanying sense of pressure. Nobody is on demand, as customers are encouraged to drop off their vehicles for appointments or consultations at a convenient predetermined time. All phone calls made with customers or adjusters for repair estimates and updates are scheduled events so that nobody’s time is overextended, or unnecessary/redundant conversations may be had. In addition, time blocking makes sure that busy employees have enough time in between commitments rather than rushing from one task into another. Although challenging to perfect, once established and executed properly, it will allow your team members to accomplish far more with their time and energy. As such, when implemented successfully, it makes a huge difference in helping the overall productivity of any collision repair shop.

Schedule your team’s day to maximize productivity For best results in team productivity, it is important to establish an organized schedule at the start of the day.

To achieve this, everyone should have a defined role, and commitments should only be made based on the amount of time each individual has while considering any previously scheduled events. All necessary meetings should be planned accordingly, with everyone’s availability taken into account, while avoiding random interruptions that can pull team members off of their tasks and cause increased transitional waste, thus negatively impacting your facility’s performance. Ultimately everyone should work together to ensure everyone’s time is respected and that they stick to the schedule. For

February 2023

example, an incoming call to a team member is always answered with, “That team member is currently helping another client. Would you like me to send you a link to their availability for you to schedule a call with them that works for your schedule & theirs?”

Tips for implementing solid scheduling Solid scheduling entails setting appointment times and dates manageable for clients and your organization. To ensure maximum efficiency throughout, look into automation software solutions, as there is a considerable array of service providers offering minimal-cost applications that will duly recognize any previously-made commitments. Develop and maintain a regular meeting schedule to increase communications & accountability in scheduling all events and calls (walk-ins, vendor visits, etc.). Leverage the automation for appointment reminders to avoid clients showing up late or team members missing a scheduled call. These notifications can also help facilitate necessary information before calls or consultations to avoid rescheduling or being unprepared for a scheduled commitment. One of the biggest impacts you will experience during implementation is your newfound ability to regulate the number of cars entering and exiting the facility for a far more predictable workflow.

• Are you guilty of coming home only to ask yourself, “What did I actually accomplish today?”

• Is your workflow dependent on whatever rolls through your front door that week?

• Is the day-to-day calls & client pressure leading to improper prioritization of your team?

• Would you consider your overall operation proactive or reactive?

These are all common challenges that we all have faced as shop owners at one point or another, but there is a way to change the paradigm. Having pursued this method myself, I can attest to its benefits firsthand. It will help you better understand what’s happening in your business daily and allow you and your team to proactively approach each day with set goals and priorities. When you take the time to schedule your team’s day, you can maximize productivity and effectively avoid any unnecessary downtime.

While implementing solid scheduling practices may seem daunting at first, the benefits of automation and increased productivity will quickly become apparent.

I challenge you to give it a try—your business (and your team) will thank you for it!

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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

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