FenderBender - December 2021

FENDERBENDER.COM / DECEMBER 2021

YOUR STEP-BY-STEP MARKETING PLAN

PAG E 36

NAIL YOUR NEGOTIATIONS Strategies & Inspiration for Collision Repair Success

PAG E 3 8

DON’T DISCOUNT SMALL JOBS

PAG E 42

ESTIMATING EXCELLENCE CAN’T-MISS RULES FOR PAIN-FREE ESTIMATES PAG E 28

RAINS:

FIND YOUR EXIT PATH

PAG E 27

Advanced Mastery Preferred Collision Center’s production manager Riane Twining’s concerted training efforts have elevated the Michigan shop’s performance.

UNCOVER NEW BUSINESS SUCCESS Reach Your Goals with CCC Elevate® Services Your shop’s needs are as unique as each repair. Get personalized, practical support to achieve greater success with CCC ELEVATE Services.

Your dedicated ELEVATE Advisor will work with you to merge your team’s talents with industry best practices and develop a customized plan for your shop.

Analyze and learn from shop and team performance Identify sales growth and profitability opportunities Define and optimize shop processes

“

ELEVATE has FAR exceeded our expectations and we’ve never been part of something that has brought about this kind of meaningful change and added this kind of value to our operation.

John Botek, Chesapeake Collision Randallstown, MD

Outline staff roles and responsibilities Drive new improvements in business operations

“

Establish the right business objectives

Connect with your ELEVATE Advisor today at cccis.com/elevate-by-ccc/

CCC Elevate Services is a registered trademark and CCC and the CCC logo are registered service marks of CCC Intelligent Solutions Inc. ©2021 CCC Intelligent Solutions Inc. All rights reserved.

A X A LT A C O A T I N G S Y S T E M S

More coverage in every can.

Unlike other basecoats that can require up to six coats, Cromax® XP delivers full coverage in as few as two coats. It’s easy to learn, use, and even repair—if ever needed. Cromax® XP is the ideal solventborne system for those who value quality and simplicity.

Experience the difference.

axalta.us/xp

Copyright © 2021 Axalta Coating Systems, LLC and all affiliates. All rights reserved.

ONE COLLISION

SOLUTION THAT DOES IT ALL

Authentic OE Scans

Fast Aftermarket Scans

Aftermarket Multi-Brand Diagnostic Software CCC ONE® Data Integration

GET EVERYTHING YOU NEED ON ONE SCREEN! DriveSafe™ with IVSTrio™ is the Ultimate Collision Diagnostics Tool!

IVSTrio™ includes: IVSTrue-OE™ – Authentic OE Scans and OE Scan reports run by Opus IVS expert technicians using OEM-licensed software IVSQuickScan™ – Fast aftermarket vehicle scan delivering results in 2 to 4 minutes

AND DRIVESAFE™ INCLUDES ACCESS TO WORKFLOW EFFICIENCY TOOLS: CCC ONE® Estimating Software – CCC ONE® installed

directly on the DriveSafe with built-in camera allows you to prepare estimates directly from the platform

CCC ONE® Data Integration – Save time per repair with

IVSRepair™ – Full aftermarket multi-brand diagnostic

software with live data, bi-directional controls, system tests and ADAS calibration functions

Plus, Opus IVS Remote Services: IVS 360™ – Live repair guidance from hundreds of

OE-trained Master Technicians who can remote directly into the vehicle

IVSRAP™ – Remote ECU programming and ADAS

calibrations performed by IVS 360 Master Technicians

a direct integration into the leading estimation software.

Scan reports and invoices feed directly into the vehicle’s work file so they can be sent straight to insurers NEW IVSWizard™ – Pre-configured decision tree designed by industry-leading collision shops to help technicians select between an OE scan or QuickScan™ for each repair based on recommendations that are customizable NEW *IVSMAP™ ADAS Blueprint – Includes a list of ADAS systems on the vehicle, identifies calibration requirements, targets needed by system and ALLDATA service information for each DTC present *Feature available Q1, 2022

collision@opusivs.com

OpusIVS.com

(844) 727-7226

GET THE POWER TO REPAIR™

CONTENTS

DECEMBER 1 2 . 2 1

|

V O L U M E

2 3

|

N U M B E R

1 2

28

ENSURING ESTIMATING SUCCESS

As the industry has changed, so, too, has the role of the estimator, such as Riane Twining’s position.

BY PAUL HODOWANIC

Printed in the U.S.A. COPYRIGHT ©2021 BY 10 Missions Media LLC. All rights reserved. FenderBender (ISSN 1937-7150) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. FenderBender content may not be photocopied, reproduced or redistributed without the consent of the publisher. Periodicals postage paid at St. Paul, MN, and additional mailing offices. POSTMASTERS Send address changes to: FenderBender, 571 Snelling Avenue North, St. Paul, MN 55104.

December 2021

5

fenderbender.com

CONTENTS

DECEMBER

QUICK FIX

13

10

PAST THE PAGE Recover from burnout

11

DRIVERS SEAT Rounding out a tough year

13

ANALYSIS

The OEM certifications, DRP dilemma

16

NUMBERS

How pervasive are certifications?

18

LIGHT HITS

asTech launches new tool

21

ADAPT

The future of segmentation

23

SEMA COVERAGE

Consolidation forecast

24

SNAP SHOP Richard’s Body Shop

FOLLOW WHAT THE LEADERS FOLLOW CONNECT WITH FENDERBENDER FOR THE L AT E S T C O L L I S I O N R E PA I R C O N T E N T December 2021

6

fenderbender.com

STRATEGY

COLUMNS

36

27

IDEA SHOP

Determine your 2022 marketing plan

38

THE BIG IDEA

BY K E VIN R AIN S

BY STE VE MORRI S

Is exiting selling out?

41

SALES+ MARKETING

PROCESS DRIVEN

Nailing negotiations

Determine your next step?

42

49

IN THE TRENCHES How to spot a good leader

50

OUTSIDE THE LINES

10 wishes for 2022

BY JASON BOGG S

BY RYAN CROPPE R

CASE STUDY

Small job strategy

46

LEADERSHIP

Ecourage employee goals

38

GET HANDS ON. Sitting behind a desk all day? That's not you.

Jump start your technical career in the transportation industry at � TECHFORCE.ORG/CAREERGUIDE

:llf TECHFORCE

December 2021

7

®

FOUNDATION

fenderbender.com

CONTENTS

ONLINE EXTRAS

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

FenderBender Management Conference

AUTEL

FinishMaster

Axatl Coating System

CCC Intelligent Solutions

EMM Specialties

Industrial Finishes

Opus IVS

PPG

ProColor Collision

SATA/Dan-A m Company

Spanesi Americas

TechForce Foundation

EDITORIAL

Bryce Evans Vice President, Content and Events Anna Zeck Editorial Director Paul Hodowanic Staff Writer Nora Johnson Special Projects Editor Jason Boggs Contributing Writer Ryan Cropper Contributing Writer Steve Morris Contributing Writer Kevin Rains Contributing Writer

READ WHAT THE PROS READ

EDITORIAL ADVISORY BOARD

Sheryl Driggers Universal Collision Jesse Jacobson Heppner’s Auto Body Greg Lobsiger Loren’s Body Shop Stan Medina Certified Collision Works Tiffany Menefee Pronto Body Shop Louie Sharp Sharp Auto Body

ART AND PRODUCTION

Zach Pate Art Director Olivia Curti Graphic Designer Morgan Glisczinski Graphic Designer Emme Osmonson Graphic Designer Lauren Coleman Production Artist

SALES

Chris Messer Vice President and Publisher 651.846.9462 / cmesser@10missions.com Andrew Johnson Associate Publisher 651.846.9459 / ajohnson@10missions.com Marianne Dyal Marketing Strategist (National Accounts) 706.344.1388 / mdyal@10missions.com Bob Marinez Marketing Strategist (National Accounts) 216.533.8747 / bmarinez@10missions.com Martha Severson Marketing Strategist (National Accounts) 651.846.9452 / mseverson@10missions.com Kyle Shaw Marketing Strategist (National Accounts) 651.846.8480 / kshaw@10missions.com Dan Thornton Marketing Strategist (National Accounts) 734.676.9135 / dthornton@10missions.com Sean Thornton Marketing Strategist (National Accounts) 269.449.0257 / sthornton@10missions.com Matt Harper Regional Sales Manager 651.846.9551 / mharper@10missions.com Melody Todd Senior Marketing Strategist (Regional Accounts) 651.846.9468 / mtodd@10missions.com Jen George Client Service Specialist 651.846.9465 / jgeorge@10missions.com

10 MISSIONS MEDIA

Jay DeWitt President Mariah Straub General Manager and Production Manager Meghann Moore Bookkeeper and Client Service Specialist Kate Fahlen Event Producer Meghan Horan Community Development Associate Tiffany Fowler Senior Digital Media Strategist Kasey Lanenberg Marketing Communications Specialist Karley Betzler Administrative Assistant

HOW TO RE ACH US

571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of FenderBender.

BACK 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

For high-quality reprints or e-prints of articles in this issue call 651.846.9488 or email reprints@fenderbender.com.

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

AUTOMOTIVE GROUP

December 2021

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

T O S U B S C R I B E O R R E N E W AT FENDERBENDER.COM/SUBSCRIBE 9

fenderbender.com

VIDEOS

PA ST T H E PAGE

CATCH UP ON SEMA

|

PODCASTS

|

WEBINARS

|

NEWS

WONDER ING A BOU T THE L ATEST products and industry trends? Then be sure to catch up on FenderBender ’s coverage of the 2021 SEMA Show in Las Vegas, including the winners of the Best New Product Awards. Head to fenderbender.com/SEMA for all the highlights.

Combating Burnout Burnout is real in every industry. But in a fast-paced environment like collision repair it is even more prominent.

Editorial Director Anna Zeck chatted with numerous industry leaders about their bouts with burnout, how they combat it and regain passion for the industry and how to identify it in yourself and your team.

FENDERBENDER.COM/PODCASTS

@fenderbendermag December 2021

@fenderbendermag

@fenderbendermag 10

fenderbender.com/linkedin

fenderbender.com fenderbender.com

DRIVER’S SEAT

RECOGNIZING REALITY Let’s not diminish the tough times

And I see you continuing to successfully do all of the above even in the face of the adversity and uncertainty you have faced.

While I sincerely hope that next year brings more stability, I know this industry is well-equipped to deal with any challenges that arise.

And if you need any inspiration, I highly recommend making sure you read our four columnists—Kevin Rains, Ryan Cropper, Steve Morris, and Jason Boggs. From their industry wishlists to the challenges of of selling to the marks of a great leader, they remain not only our eyes and ears in the industry, but give a voice to shop owners everywhere, as well.

That, ultimately, remains our goal here at FenderBender and I hope helps soften the burden of dealing with the issues we’ve mentioned: to unite the industry by giving a voice to the individuals therein.

Happy holidays and see you next year!

I’VE BEEN STARING AT MY BLANK WORD

for weeks now, trying to figure out what to write this month—the last of the year. It feels like I should have something insightful to share, wrapping up the year.

But if I’m honest, in many ways, it feels like I’m limping toward the finish line. I’m leaving this year with a short-staffed team, uncertainty about what next year will be like, and feeling overall wary and downright tired. Anyone else relate?

In this industry, between the parts shortage, supply chain issues, The Great Resignation, the crazy real estate market, and everincreasing friction with insurers and OEMs alike, it’s no wonder you’re on edge.

And honestly, I’m not going to try to sugarcoat it: It’s hard.

It’s hard spending hours every day trying to hunt down parts that used to be easily available.

It’s hard worrying and thinking about how to make your team feel appreciated, and then have them leave anyway.

It’s hard having to waste time fighting with insurance companies about getting paid for things required to fix a vehicle properly.

It’s hard not knowing if next year will be better, worse, or more of the same.

Those are day-to-day realities, and their relentlessness is exhausting.

So in this Editor’s Letter, I just want to say: I see you.

I see you trying any means possible to get parts in quickly so that your customers aren’t stuck without their vehicles for an extended period of time.

I see you working hard to recruit and then retain top talent, be it through culture-building initiatives, extensive training opportunities, or simply trying to be a good boss.

I see you trying—sometimes in vain!— to be an advocate for the customer and their safety while negotiating with the insurance company.

DOCUMENT

December 2021

ANNA ZECK

EDITORIAL DIRECTOR

azeck@10missions.com

11

fenderbender.com

SPONSORED CONTENT

BRIDGING THE GENERATIONAL GAP

By S T E V E L E A L

“Each generation considers itself more intelligent than the one that went before it, and wiser than the generation that comes after it” George Orwell On many occasions, I am asked this question – as head of some of the most iconic aftermarket brands, how do you engage different generations of customers? Almost every business today faces THE great challenge of engaging with customers from multiple generations.

Today, we are witnessing five different generations of customers with different expectations, attitudes, communication styles and perspectives. Nevertheless, adopting an engagement approach that addresses each generation segment can help body shops remain agile and profitable in the long run.

Our customers and many of our franchise owners fall predominantly in the four major generational groups outlined below: • Matures – those born in 1945 and before • Baby Boomers – those born between 1946 and 1964 • Gen X – those born between 1965 and 1981 • Millennials (or Gen Y) - born in between 1982 and 2004 In these four segments, Millennials currently have the highest spending power while the others continue to remain the most loyal customers. We are smack-bang in the middle of watching a whole-new segment of consumers dictating the market.

Another upcoming generation – Gen Z (those born from 2005 to present) – forms a smaller portion of our customers but are just as important to address as they form the latest generation of motorists who own or are planning to buy their own vehicles soon.

Catching them in this formative phase is key.

Engaging with each of these groups requires a good grasp of their evolving behavior. The customer is always at the heart of our operations, and we can’t employ a “One Size Fits All” approach when addressing such diverse groups. And that means not just creating robust sales and marketing campaigns, but the entire process of how we do business with them – customer service, communications, operations, in-store experience, among others.

Our own observations have shown that more than any other generation, Gen X and millennials expect their interactions with businesses to be not only fast and professional, but personalized. They just want the job done to perfection. And they’re willing to pay more for this type of experience.

Millennials were born just when high-speed Internet arrived. They are therefore more connected to technology and prefer self-service tools that save time and effort, because they would like to feel in control or empowered. Therefore, we deploy a range of omnichannel strategies to engage with this important audience – from communicating through social media platforms, to creating content that makes them think again.

On the other hand, matures and Baby Boomers will remain loyal to a brand throughout their lifetime if they receive a more personal attention from the brand. They seek value for money, are fiscally conservative and are willing to invest extra in a product or service as long as it justifies maximum return on investment.

Matures prefer traditional methods of engagement than technology, while Baby Boomers can be described as early technology adopters, optimistic, straightforward, and pretty less formal than the Matures.

Engaging these the generations therefore requires a completely different type of approach. While some of them love processes that disrupt the marketplace, others prefer a more conservative approach.

Many businesses are now examining generational engagement more closely. This means adapting goods/services and other components to a specific generation. From this perspective, companies may adopt a one-generation-specialization. Other businesses prefer a multi-generational strategy where they can go beyond the unique needs of individuals belonging to the same generational group and to propose an offering that can satisfy those of more than one generation.

Personally, I am a big advocate of an “omni-channel approach” towards engaging existing and potential customers. By marrying traditional and technologically sophisticated approaches in all your engagement strategies, you can keep your body shop relevant to the customer. I believe that trying out different channels of communications with your target audience and then fine-tuning your strategies accordingly will help in boosting efficiencies, and in turn, your body shop’s bottom line.

Bridging the generational gap shouldn’t be a difficult task as long as your team understands the expectations of each generation and manages them efficiently. I believe this can create opportunities for your brands to pivot their marketing strategies and win both in the immediate term and in the longer term.

Steve Leal is the President & CEO of Mondofix, Inc. dba 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.

NEWS

Q U I C K

|

IDEAS

|

PEOPLE

|

TRENDS

F I X

A NA LYSIS

IS IT POSSIBLE TO HAVE OEM CERTIFICATIONS AND DRPs?

GETTY

By ANNA ZECK

O E M A N D I N S U R E R representatives stated their cases regarding the realities of shops trying to maintain OEM certifications and DRP partners during an attimes contentious panel discussion during the Collision Industry Conference at the SEMA Show.

During a panel discussion moderated

December 2021

13

fenderbender.com

QUICK FIX

“BETWEEN OUR NETWORK AND THE OES, WE HAVE MORE THAT IS IN COMMON THAN WE HAVE DIFFERENCES.” —Sandee Lindorfer, director at Allstate

by CIC chairman and LaMettry’s president of operations Darrell Amberson, representatives from Mercedes-Benz, Subaru, CSAA Insurance, Allstate and OEConnection maintained their company positions and at times disagreed with each other’s perspectives.

tation. It’s in the repair procedures,” he said. “We want to remove those barriers for our partners to process that information quickly. In the end, we want to pay the claim quickly and get the customer back in the vehicle.”

Are Both Business Models Possible?

As for the biggest friction points, Cid and Subaru collision certification manager Devin Wilcox agreed that making sure shops are doing “the right thing” and following the repair procedures is the OE’s biggest priority.

“We have an audit process and also an unannounced audit process to make sure shops are doing the right thing,” Wilcox said. “We really hold our network of shops to the highest standards. We have no problem pulling the plug if it’s not right with the shop. If it’s not right, it’s wrong.”

When pressed by Amberson, both Wilcox and Cid admitted they believe further regulation and stricter guidelines from the OEs for their certified shops is on the horizon, which caused concerns this would create even more friction for shops when dealing with insurers.

“We work closely with the OEs and try to come to common ground. … We work together very well the majority of the time,” Lindorfer said. “I think we have to ask our repairers, how do they feel about all these quality checks from outside the business? I don’t know of any other group that has this type of oversight on it. Should the repairer own their repair quality?”

Benito Cid, collision manager at MercedesBenz, kicked off the discussion bluntly when asked if it’s possible for a shop to be on both programs.

“It’s difficult; I would never say it’s impossible. There are shops that do it, but it’s extremely difficult,” he said. “The background work that needs to be done when you need to prove your point, there’s a lot more time invested in that.

“Ultimately, from an insurance standpoint, the idea is that they should pay for everything that needs to be done and the shop needs to prove everything that needs to be done. The legwork is the difference.”

Sandee Lindorfer, director at Allstate, disagreed, noting that Allstate has many shops that have OEM certifications within its network.

“Between our network and the OEs, we have more that is in common than we have differences. We want our customers to have safe and proper repairs,” she said. “I don’t think that proof of repair procedures is as great as it was in the past when it was so hard to get repair information.”

Among all the representatives, a common theme of having good communication with industry stakeholders emerged. Dan Tessadri, APD business consultant from CSAA Insurance, often reiterated that for CSAA, removing barriers and allowing for the swiftest route to safe and proper repairs was its top priority.

“If there are repairs outlined by the OE, they don’t need to be validated by our partners. We don’t ask for heavy documen-

December 2021

Stricter Oversight to Come

Time to Re-Evaluate KPIs?

That’s where the discussion began to take a more contentious turn as the conversation turned to KPIs and the expectations on shops regarding scorecard metrics.

OEConnection’s Tagliapietra pressed the insurers, arguing that, “some of those KPIs haven’t been updated in 10 years. The repairers are being held to those standards.”

Lindorfer disagreed, saying that cycle

14

time numbers have been updated over the years because of complexity of repairs and they are evaluated regularly.

Tessadri was sympathetic to the repairer plight, but also felt the challenges were too great to completely overhaul the scorecard process.

“I understand the challenges the repairer faces and I think crafting a subset of metrics may be challenging depending on the ability of the information provider,” he said.

Lindorfer agreed, and argued the time is not right for an overhaul.

“The majority of the vehicles we repair are not 2021 vehicles,” she said. “We need to repair the vehicle in front of us. The average age of the vehicle on the road is more than 11 years old.”

Tagliapietra took issue, noting that cars that are even seven years old have OBD-II ports and require a certain level of complexity.

Further Insurer Participation Required

During the Q&A portion of the discussion, CIC attendees pressed all panelists, including from I-CAR vice president of technical products and programs Jeff Peevy.

“If a manufacturer has a stated requirement, you must be performing those pre- and post-repair scans. Once the manufacturer has identified what the correct activity is, you, as the shop, that is failing to perform that activity will automatically have reached negligence and you will be held responsible if there’s any damage,” he said. “We need insurers to make sure they’re on board with making sure they’re paying for the appropriate procedures that the OEs are saying are the right way to fix their cars.

“Just because you did not repair the vehicle for the people who currently own it, does not mean you can’t be held responsible for neglecting to perform repairs that are procedurally necessary, particularly as it relates to scans.”

Ultimately, the conversation ended with SCRS executive director Aaron Schulenbrug thanking the panelists for participating and calling for other insurers, in particular, to make themselves more available.

“There’s a bigger issue here, for this committee in particular: There should be more companies that are willing to agree to the conversation,” he said. “We struggle to find the right people to get on the stage.”

fenderbender.com

GAS-CATALYTIC INFRARED CURING FROM US AUTOCURE IS HERE. DON’T GET LEFT BEHIND.

WHAT DOES THAT MEAN FOR YOU? FITS EXISTING SPRAY BOOTHS Same booth = more revenue!

SHORTER CYCLE TIMES

Shorter repair cycles improve customer satisfaction.

GREATER REVENUE PER LABOR HOUR Make the most of your workforce.

LOWER ENERGY COSTS

Dramatically reduce your monthly utility expenses.

CLASS 1, DIV 2 CERTIFIED

Full compliance to US Fire Prevention Standards.

US Autocure systems are designed by body shop owners to meet the need to handle more repair orders without adding additional spray booths or labor. Leading edge engineering and incredible return on investment make US Autocure a must for leading collision repair centers.

DISTRIBUTED EXCLUSIVELY BY

Contact Industrial Finishes & Systems for more information

800-531-1305 • INDUSTRIALFINISHES.COM

QUICK FIX

NUMBERS

OEM CERTIFICATION BREAKDOWN W H I L E O E M C E R T I F I C AT I O N is a buzzed-about topic in the collision repair industry, just less than half of responding shops said they had at least one certification (49.53 percent); 8 percent of shops said they held none but planned to get certified.

How many auto manufacturer certifications does your business have?

December 2021

None

None (planning to become certified)

2-3

43%

8%

15%

4-5

6 or more

1

9%

13%

12%

16

fenderbender.com

W H Y Z A M O R A’ S A U TO B O DY M A D E T H E S W I T C H

BUSINESS PROFILE

ZAMORA’S AUTO BODY Frederick, Maryland Andy & Eric Zamora ~ Owners

3 85 5 6 3 75

LOCATIONS EMPLOYEES PAINTERS PAINT BOOTHS PREP DECKS VEHICLES PER WEEK

Andy Zamora

“We demoed four waterborne paint lines and found PPG had the best product, the best technology, and the most technical support.”

“The color chips are an identical match, so there’s little need for sprayout cards.

This saves us money on paint and labor.”

“We increased our throughput by 10% or around 30 to 40 more vehicles per month.”

PERFORMANCE YOU CAN COUNT ON The PPG Logo, Envirobase and the Multiple Cubes Geometric Design are registered trademarks of PPG Industries, Ohio, Inc. ©2021 PPG Industries, Inc. All rights reserved. www.envirobase.com

QUICK FIX

LIGHT HITS

STUDY: NEWEST VEHICLE TECHNOLOGIES GOING UNUSED

While new-vehicle technology is a leading reason why buyers choose one vehicle over another, many new vehicles are equipped with some features that they want no part of, according to the J.D. Power 2021 U.S. Tech Experience Index.

The study finds that, for more than one in three advanced technologies, fewer than half of owners have used the technology in the first 90 days of ownership.

For example, 61 percent of owners say they have never used the in-vehicle digital market technology, and 51 percent of those saying they have no need for it.

Owners feel similarly about the driver/ passenger communication technology, with 52 percent saying they have never used the technology, and 40 percent of those saying they have no need for it.

“New-vehicle prices are at an all-time high, partly as a result of an increased level of content,” Kristin Kolodge, executive director of human machine interface at J.D. Power, said in a statement. “This is fine if owners are getting value for their money, but some features seem like a waste to many owners.”

asTECH INTRODUCES “ALL-IN-ONE” SCANNING SOLUTION

asTech has announced asTech Duo, a solution that will allow customers to have access to both remote OEM scans and local OEM-compatible scans in the same device.

December 2021

With the introduction of Duo, asTech now provides customers with a choice from one of two diagnostic scan types: a remote OEM scan that is supported by ASE and I-CAR certified technicians, or a local OEM-compatible scan. The solution also identifies relevant ADAS equipment and required calibrations based on the repair estimate, allowing shops to identify this important requirement at the beginning of the repair process.

“Our customers have expressed the need for an integrated solution with access to both local and remote scanning options in one device.” Maurice Tuff, chief technology officer of Repairify, said in a statement. “With Duo, we are pleased to deliver this choice to our customers, giving them the flexibility and convenience to safely and accurately complete repairs.”

For every remote scan report asTech delivers, customers now also have access to the output from the official OEM scan tool right from the Duo application.

Existing asTech customers can also access the OEM tool reports through asTech Connect.

and insurance claim information and schedule pick up of their vehicle from their home or work by a Real Auto Body flatbed truck. Clients are updated by the Real Auto Body website and contacted by email from a dedicated customer service representative throughout the process.

The vehicle is then returned to the client once the repairs are completed. Now users of the service are able to download the Real Auto Body App on their smartphone which allows them to perform all the aforementioned tasks.

REAL AUTO BODY LAUNCHES REPAIR APP

MASSACHUSETTS COURT RULES INSURERS MUST PAY FOR INHERENT DIMINISHED VALUE

Real Auto Body, an on-demand auto body collision repair company, has announced the launch of its repair app.

According to a press release, the firstof-its-kind app will allow accident victims to handle the repair of their collision damaged vehicle from their smartphone without having to drive to an auto body shop.

Customers currently use the service by going to the company website at RealAutoBody.com and clicking on "Start-A-Repair." They input their vehicle

18

MASSACHUSETTS BODY SHOP RECEIVES $104K GRANT

Fuller’s Collision Center, located in Auburn, Mass., is proud to announce that it recently received approval for a $104,000 grant from the Massachusetts Workforce Training Fund with the assistance of Human Power Solutions.

According to a press release, the grant will help Fuller’s Collision Center fund a twoyear specialized training commitment. The shop will participate in “Advanced Principles of a Safety and Health Management System,” led by Safety Trainers, in addition to receiving training through HPS on negotiation and a variety of other “soft” skills. The grant also includes continuing education and training through I-CAR. “Today’s collision repairs are very complex, and in order to deliver exceptional customer service and compete in the industry, our business must learn soft skills, such as communication and organization, which help us prioritize our repair jobs and enable us to continue being effective day to day,” owner Joshua Fuller said in a statement.

Massachusetts auto insurers are now required to compensate third-party claimants for the lost value of a vehicle even after it has been repaired.

According to a Claims Journal report, the state’s highest court ruled Tuesday that standard auto policies issued in Massachusetts require compensation for “inherent diminished value.”

“Because the plain language of part

fenderbender.com

QUICK FIX

4 of the standard policy does not limit recovery to merely repair or replacement costs, such recovery must compensate a claimant for any loss of value the claimant incurred as a result of a collision, offset by the increase in value that may occur from repairs to the vehicle,” the Massachusetts Supreme Judicial Court said in a unanimous decision written by Justice Serge Georges Jr. The opinion does not state whether it applies to first-party claims.

GM ONSTAR INSURANCE TO REACH ALL 50 STATES IN 2022

General Motors has announced that the automaker’s OnStar Insurance service will be available in all 50 U.S. states by early 2022, GM Authority reported.

OnStar Insurance Services is a use-based insurance service specifically for GM owners, promising to take the “biased judgement out of insurance shopping” with a focus on factors that fall within the customer’s control, such as individual vehicle usage and rewards for safe driving habits.

“In just 10 months, OnStar Insurance became available in 38 states,” Fletcher said during her presentation at GM Investor Day. With plans to roll out OnStar Insurance in all 50 U.S. states by early 2022, the service will be one of the “fastest nationwide rollouts of an auto insurance product,” Fletcher stated.

STILL BILLIONS IN EIDL AVAILABLE

The Small Business Administration still has tens of billions of dollars left in its Targeted Economic Injury Disaster Loan Advance grant program — and just two full months remaining for small business owners to claim it, MassLive reported.

So far the $10,000 grant program has funded 447,473 grants for a total of about $3.8 billion, according to SBA data through October 21. That is just a tiny fraction of the $30 billion Congress approved.

And while early data showed enormous need from small businesses for the grant program, a stipulation that businesses must be located in low-income areas has dampened its utility. That requirement has left small-business owners outside those borders frustrated, even if they initially received a partial grant in 2020.

December 2021

And a follow-up grant by the SBA, the Supplemental Targeted Advance available to the smallest businesses that had received the initial Targeted EIDL grant, has disbursed about $1.8 billion to 359,864 businesses. Congress had given the SBA $5 billion for that program.

Both of these grant programs expire at the end of 2021.

CCC LAUNCHES TOUCHLESS ESTIMATING

CCC Intelligent Solutions announced it has launched touchless estimating, according to a press release.

The product, CCC Estimate–STP, uses advanced AI and insurer-driven rules to automatically initiate and populate estimates.

“CCC Estimate–STP utilizes AI at levels not previously seen in the industry and delivers the first-ever touchless estimating experience,” Barrett Callaghan, executive vice president of markets and customer success for CCC. “CCC is excited to deliver innovations that simultaneously reset expectations for insurers and policyholders, removing friction, increasing transparency and delighting policyholders by accelerating the claims experience. What many thought was impossible or years away is now live in market with CCC-powered estimates being completed in seconds versus days.”

The product is in market with four national insurers, including USAA.

CHRIS CHESNEY TO JOIN REPAIRIFY

Chris Chesney will join Repairify as vice president of training and organizational development, according to a press release.

Chesney has been a master technician, service advisor, shop owner, and technical management educator. He spent nearly 22 years leading Advance Auto Parts’ Carquest Technical Institute.

“Chris Chesney is widely regarded as one of the greatest educators in the automotive industry. He has the experience of building and growing some of the most successful automotive training organizations in the automotive industry,” said Repairify President Cris Hollingsworth in the release. “We are humbled and excited that Mr. Chesney

19

has chosen to join the Repairify team and we can’t wait to see what he brings to our organization and customers.”

CCG ADDED 120 LOCATIONS IN Q3

Certified Collision Group announced it welcomed 120 independent locations to its affiliate group in the third quarter of 2021.

The company called the results “historic.”

“We are humbled by this news and emboldened to continue our unwavering support of best-in-class independent operators,” Marty Evans, CCG’s chief operating officer, said in a statement.

“The customer-focused, OE Certified independent operator remains vital to both the consumer and the industry at large; CCG will keep leveling the playing field for those operators so they can compete.”

The 120 independent locations added are located in 17 states. CCG’s quarter also included the addition of key vendor partners: Elitek Vehicle Solutions, Global Finishing Solutions, Kecotabs Glue Pull Repair System and Opus IVS.

STUDY: BILLING FOR WELD TESTING CONTINUES TO INCREASE

New results from the Who Pays for What sur vey, released by the Crash Network, reveal an increase in shops billing to set up and perform destructive weld testing.

“This summer, nearly 3 of 10 shops—29 percent—reporting being paid to set-up and perform destructive weld testing ‘always’ or ‘most of the time’ by the eight largest national insurers,” said Mike Anderson, who conducts the surveys with CRASH Network. “That’s more than twice the percentage—just 12 percent—who found that to be true back in 2015 when we started the surveys.”

Back in 2015, Anderson said, about 81 percent of shops said they’d never sought to be paid for performing test welds. That’s fallen to about half that, just 43 percent, today.

“Whether through the surveys or other training, shops are increasingly understanding the requirement to perform destructive tests on welds before welding on a vehicle, and can choose whether to bill for it when appropriate,” Anderson said in a statement.

fenderbender.com

IA800

ACCURATE ADAS CALIBRATION

MADESIMPLE

IA800 ACCURATE ALIGNMENT PRE-CHECK & CALIBRATION FRAME PLACEMENT

1 PRE-CHECK >

• Perform Alignment Check, Easily Add Confirmation to ADAS Pre-SCAN Report

• Quickly Identify Wheel Alignment Issues Which May Affect Calibration Accuracy

2 POSITION >>

• High-resolution Cameras Eliminate Manual Measurements

• Accurately Position Frame Quickly With 1 Technician • Color Coded Values Indicate Accurate Precise Amount of Frame Movement Required

3 PERFORM >>>

• Calibrate with Any ADAS Capable MaxiSYS Scan Tool

• Easy To Follow, Illustrated, Step-By-Step Instructions Guide the User Through Every Step of the Calibration Process

4 PROVIDEDONE! • Easy-to-Read Report Indicates Wheel Alignment Condition

• Comprehensive Report Provides Proof of ADAS Calibration • Easily Share PreSCAN / PostSCAN Reports with Customers or Insurance Carrier by Print, Digital PDF or Email

POWERED BY AUTEL DIAGNOSTICS POWERFULTOOLS+SMARTERSOFTWARE TEL: 1.855.288.3587 I WEB: AUTEL.COM EMAIL: USSUPPORT@AUTEL.COM FOLLOW US @AUTELTOOLS ©2021 Autel U.S. Inc., All Rights Reserved

SCAN TO WATCH

TRAINING VIDEOS

YOUTUBE

ADAPTAUTOMOTIVE.COM

QUICK FIX

of repair and those types of vehicles, and I think you’re going to continue to see some more segmentation in our industry because of these advances in technology. You see a lot of that segmentation happening at the OEM level.

How does that segmentation emphasize the need for up-to-date training on these emerging technologies?

ADAPT

INDUSTRY SEGMENTATION COULD GIVE SOME REPAIRERS A BOOST MIKE ANDERSON OF COLLISION

A D V I C E spoke with ADAPT about how

diversification and segmentation in the industry due to emerging technologies such as EVs and ADAS can help provide significant opportunities for repairers that are quick to adopt those technologies.

BOB WILLIAMS

As told to NOAH BROWN

When we talk about technology, we can’t just limit it to vehicle technology such as calibrations, ADAS and EV vehicles. We also have to think about technology and our day-to-day job duties.

Three to four years ago, the average shop was fitting about 10 percent of their sales on administrative costs, and today that’s closer to 14 percent. Every time that our administrative wages as a percentage of sales grows, it erodes our bottom line. We have to utilize technology to understand how we can eliminate human disruption and work more effectively and more efficiently and to have our business utilizing technology.

COVID jump-started some of that. Our industry has always been behind in regards

December 2021

to use of technology, but I think COVID kind of jumped-started that and we’re going to see a lot of good, positive trends come out of that and help shops be more profitable.

On the flip side, as far as the technology of the vehicles, I think that a lot of shops probably would’ve gone out of business during COVID had it not been for the PPP loans.

I think that it’s really important that shops understand that the continued increase of investing in training and equipment is going to continue to rise in regards to EV vehicles and maybe even newer substrates that are developed or ADAS features.

We’ve got to position ourselves to be profitable so we can invest in that technology equipment and training.

I also think that maybe that’s going to separate the herd a little bit. With the new developments in technology, EVs and ADAS, it’s going to do what aluminum started to do. When aluminum first came out, some of the OEMs had very specific certifications that started to separate the pack a little bit. Only a small number of people were invested into that segment of the industry

21

It is even more important today than ever before. If we make the decision to invest in the equipment and training to repair the vehicles in the future, then we’ve got to figure out how we determine how to get that ROI, whether it’s our labor rates or the tight labor hours we charge, because it’s a huge investment. We’ve really got to understand the financial side to invest in that. The other thing, too, is that we have to look at it as continuing education. It’s not like you just train on it one time because it’s happening so fast.

At the end of the day, it’s not going anywhere. We don’t need to be ostriches with a head in our sand. We need to be educated so we can be aware and make wise business decisions. There’s a lot of opportunity that will come out of this rate. It gives you the ability to differentiate yourself from your competitors.

There are strategies that can be employed to help drive more work to your door, too.

Diversification is going to be the key. I work with a lot of dealership shops and they have a term that’s called absorption rate, which is the service and parts. The body shop can absorb the overhead costs and it doesn’t impact their pricing on new or used car sales rates. So I think that we need to kind of think about that diversification. With ADAS, you know claims counts are going to continue to decline. It will be very small: maybe 2 to 3 percent per year. But I think at the end of the day, we’ve got to position ourselves to be diversified and maybe offer other services.

This opens up some doors for that.

I heard a cliché statement one time that said obstacles are opportunities dressed in work clothes. That’s what you have to do: not look at it as an obstacle, but view it as an opportunity. You have to put some financial investment into it. You have to put some blood, sweat and tears in, roll up your sleeves and get dirty to make it happen. But at the end of the day, I think it opens up a lot of opportunities for shops.

fenderbender.com

SATAjet X 5500 + SATA RPS The Dream Team for perfect finishes The revolutionary

The Original

SATAjet X 5500

SATA RPS

REVOLUTIONARY: The X-nozzles are taking atomization to a whole new level NOTICEABLY QUIETER: Whispering nozzle™ due to optimized air flow geometry INDIVIDUAL: Matches any application requirement, climatic conditions and application method PRECISE: Optimized material distribution LOW MAINTENANCE: No air distribution insert required CONSISTENT: Constant fan size across the entire nozzle spectrum EFFICIENT: The optimized atomization concept enables to realize considerable material savings

CLEAN: The cup can be easily, cleanly and safely separated from the spray gun SAFE: Firm connection between lid and cup (thread) REFILLABLE: The cups can be easily refilled BENDABLE: The SATA RPS cup can be safely tilted* by up to 45° forward, right and left * applies to all SATA RPS standard cups, however not to cup lids with minijet connection.

www.sata.com/rps

SATAjet X 5500 video www.sata.com/x5500io

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

Phone: 800-533-8016 www.satausa.com E-mail: satajet@satausa.com

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

QUICK FIX

SEMA COVERAGE

ROMANS: CONSOLIDATION TO ACCELERATE

By PAUL HODOWANIC

C O N S O L I D AT I O N W I T H I N T H E collision repair industry is expected to increase at an “aggressive rate”, Vincent Romans, managing partner at The Romans Group, said during a session at the 2021 MSO Symposium at Mandalay Bay. Romans, speaking on consolidation and private equity trends, revealed he’s seen independent repairers considering sale “more than I ever have” during the last 18 months.

As such, his company forecasts that multi-location operators with over $10 million in annual revenue will represent at least 48 percent of the revenue market share by 2025 and it could get as high as

61 percent. Currently those businesses represent 43 percent of the market share.

Romans expects the top three consolidators—Caliber, Gerber and Driven Brands—will expand its current revenue market from 18 percent to between 21–26 percent and will be “most aggressive” in continued expansion.

Romans also expects growing consolidators Crash Champions and Classic Collision will continue to expand aggressively.

“I would expect we will continue to see it based on their strategy and backing they have from their private equity firms,” Romans said of Crash and Classic.

“It’s not going to stop,” Romans later added.

And it is expected to continue not only with single-store acquisitions but also with other MSOs. According to Romans Group data, there were 106 MSOs that generated more than $20 million in revenue in 2019. In 2020, that number dropped to 86, Romans said. Most of that decrease occurred because of acquisitions along with a small number of closures.

Thus far in 2021, 38 MSOs have been acquired, Romans said. Those acquisitions represent 254 locations that generate a combined $700 million.

SEMA ANOUNCES BEST NEW PRODUCTS

By PAUL HODOWANIC

T H E K E C O C O L L I S I O N G LU E P U L L

R E PA I R S Y S T E M won SEMA’s Best New

Product award in the collision repair and refinish category.

The announcement was made during SEMA’s annual Best New Product breakfast at the Westgate Hotel in Las Vegas.

“This is amazing, actually; didn’t expect this at all,” KECO Body Repair Products owner Chris White told FenderBender. “We entered the system and the new products knowing that what we’re doing is something people are excited about, that glue pull repair as an alternate, less invasive way to fix a dent is very much gaining traction in

December 2021

collision. But we didn’t expect this—this is wonderful.”

KECO first launched its glue pull repair kit in 2019 and introduced its full system this year. According to its website, the system is the most comprehensive glue pull repair kit available to body shop technicians and includes all the tools required to complete advanced level2 repairs requiring minimal body filler.

The collision repair and refinish category represented just one of 17 categories that announced winners.

The product announcements wrapped up with a special guest appearance by Jay Leno, former host

23

of the “Tonight Show” and star of the television series, Jay Leno’s Garage.

Leno was joined by country singer Keith Urban to kick-off the beginning of the SEMA Show, which runs was held in November at the Las Vegas Convention Center.

fenderbender.com

QUICK FIX

SNAP SHOP

RICHARD’S BODY SHOP

1

By PAUL HODOWANIC Photos by MICHAEL LIPMAN

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

SUBMISSIONS@10MISSIONS.COM.

December 2021

24

fenderbender.com

1. KEEPING THE CHARACTER

Richard’s Body Shop has operated out of this location for 32 years, but the building’s history extends well beyond that. Owner David Kamish says its history dates back to the early 20th century. Prior to the body shop, it was a car dealership. At some point before that, it was a banquet hall. The property was heavily invested in during the mid-point of the century as gentrification struck the Chicago area. Evidence of those days remains, Kamish says, as keeping the character of the building has been “a priority.”

The architecture and design of the building has remained intact. The intricate moldings on the ceiling remain and the grand staircases that remind of the ballroom’s past have been kept.

“You have to modernize certain things, but you want to keep the integrity of certain things as possible,” Kamish says.

The front entrance is used to greet customers and serves as a showroom of customers’ finished vehicles. The upstairs is used for office space. Behind the showroom is a frame and aluminum area.

2

2. ADAPTING TO THE SPACE

Operating in Chicago has its challenges, Kamish says. Space is at a premium and it has forced Kamish to adapt. The shop now serves mostly as a Tesla and Range Rover facility. It also does some Subaru work. The priority has been on a smaller car count but a higher ARO. “We are focusing more on every single car rather than volume,” he says.

The showroom is where many of the cars are stored, not only so customers can see their vehicles, but also so the vehicles can be kept in a temperature-controlled area.

The shop is doing more remote pick-ups and drop-offs, especially since COVID-19.

Kamish also owns much of the adjoining property, including right across the street, which is used primarily for mechanical repairs, but also includes a full frame area. That extra space allows for some wiggle room. Plus, being in the same location for 32 years, Kamish and his staff don’t know much else.

“We pretty much dominate the whole block,” he says.

3. SHOWING OFF THE WORK

With no great parking option on the premises, all of the cars that the shop works on are stored in the showroom.

The benefit has been twofold. One, it allows customers to immediately see the restoration of their car when they walk in and it’s a good marketing tool for potential customers who visit the shop and can quickly see the shop’s work. It’s another way that Kamish has adapted the traditional collision repair business model to fit the location.

“The city does definitely provide challenges in moving the cars around, but our new processes have helped in that area,” Kamish says.

Cars are dropped off at the front of the shop and Kamish’s staff will carefully get it transported to the back of the shop for an initial diagnosis. The store also offers free pickup and delivery on all vehicles, whether or not they can be driven—all in the name of convenience for the customer and for the shop.

3

December 2021

25

fenderbender.com

MARK YOUR CALENDARS SEPTEMBER 26-28 • DALLAS-FORT WORTH, TX S I G N U P F O R F I R S T A C C E S S T O T I C K E T S N O W AT FENDERBENDERCONFERENCE.COM

COLUMNS

THE BIG IDEA

Sellout Versus Sold Out The why and the when of the exit

JILL MATTHEWS

It’s time that I f inally admit it: I’m a sell-

out. That’s right, after all these years in this industry I decided to officially get out. I sold all five of my shops last month. This column is going to get a little more personal than usual. I want to unpack why I sold and a bit of what’s next.

First I want to address this idea of “selling out.” That phrase has a double meaning. A sellout can be someone who compromises his or her values for personal gain. There’s also this other idea of being sold-out that carries a much more positive meaning. To be sold-out is to be all in on something. It means to be completely devoted, committed, and invested in something.

It’s possible to wait too long to sell a business. That delay can lead us to be sellouts in the negative sense. When you’re tired or burnt out or in over your head, it’s natural to start to compromise on the things that brought you the success that is now wearing you down. Also, holding on too long prevents us from being sold out to something else.

So, am I a sellout or just wanting to be sold out to something else? Maybe it’s both. Maybe neither. You be the judge.

Why am I selling? Why wasn’t I able to keep bringing my all to this industry as a shop owner?

Even though I’m not a skier, I recently learned the phrase “out over his skis.” In many ways, I got out over my skis as I took on more and more shops. It’s sometimes hard to admit this but I’m starting to realize that I’m better at growing a company (marketing, deal-making) than I am at leading them. It’s not that I think I’m a bad leader but I do now see that my ability to expand the company I started was greater than my ability to lead it once it expanded.

I’ve talked a lot about this in previous columns; it boils down to recognizing the vastly different, though complementary, gifts of visionaries and integrators. Operationally, I was out over my skis for years. Thankfully, I had some

December 2021

advisors and team members to help me hold it together for as long as I did.

I’ve also been asking: Is there another way I can bring my all to this industry? Helping others; guiding others the way I wished I was guided early on; sharing openly about my wins and losses and what contributed to each of those; coaching. I do want to help other owners build then profitably exit their businesses.

I taught at a recent FenderBender Management Conference on the five stages of business development. With this exit, I’ve now experienced all five stages so I can speak honestly and truthfully about what it’s like to be in each stage. I’ve experienced the dreamy visionary stage where anything is possible. I’ve also been through the chaotic valley where things feel impossible and confusing. I’ve put the processes and systems and people in place so that things could run and grow without a lot of my direct effort. And now I’m learning what it’s like to enjoy the fruits of an exit; the prosperity of time, relationships and money.

Now what? Do I just retire? I’m 52 but I feel like I have a lot left in the tank! Retiring in the traditional sense holds no appeal to me right now. There are a few things I really want to invest in for this next leg of the journey. I’ve already alluded to coaching other shop owners; I love to roll up my sleeves and help shop leaders grow. I also know I want to continue to work with my kids by helping them launch businesses of their own. And lastly, I want to dive back into the not-for-profit sector as well. In 2022 my family will be leading a non-profit focused on orphan care and adoption.

I love to ride motorcycles and a couple of years ago before setting off on a new adventure, I realized I needed a new tire for the off-road portion of the trip. Maybe that’s what I’m after in this next chapter: re-tiring. This is a new adventure and I’m still prepping for it!

27

K E V I N R A I N S is a

longtime collision repair veteran, former shop owner, and industry consultant.

He can be reached at

EMAIL:

kevinrains@gmail.com

ARCHIVE:

fenderbender.com/rains

fenderbender.com

T H E SI X L AW S OF MODER N EST I M AT I NG

e h T

SIX LAWS OF MODERN ESTIMATING ESTIMATING IS HARDER THAN IT’S EVER BEEN. SUCCESS HINGES ON SEVERAL LAWS.

By PAUL HODOWANIC Photos by CHARLES C A SWELL

December 2021

28

fenderbender.com

GETTY

W H E N R E F E R E N C I N G T H E collision repair industry, it has become commonplace to describe it as “changing” or “evolving.”

More so than many other industries, collision repairers have had to keep up with a host of new technology. In vehicles themselves, they’ve had to adapt to increasing amounts of ADAS and the arrival of hybrids and EVs. From a shop operations perspective—from sorting through a bevy of shop management system options and other digital tools to the introduction of artificial intelligence in the insurance process—the COVID-19 pandemic only accelerated many of these trends.

Every spot in the shop, from technician to detailer to service advisor, has experienced a change in workflow and job description.

But nobody may have seen a bigger and more difficult shift in their

December 2021

day-to-day job than estimator, says Teddy Haynes, an auto and truck instructor for Vale National Training Center, which offers classes for collision repairers, insurers, and independent adjusters.

“It’s 100 percent harder than it’s ever been to be an estimator,” he says.

From researching to writing estimates to dealing with increasingly absent field adjusters all while the admin-totech ratio shrinks, keeping up and thriving as an estimator is becoming a tougher and tougher task—and it becomes easier and easier to miss steps in the process.

So what does every successful modern estimator need to do to succeed? With the help of industry experts and top estimators, FenderBender has compiled the six laws of modern estimating.

29

fenderbender.com

T H E SI X L AW S OF MODER N EST I M AT I NG

Law 1:

You have to do your research.

It may sound obvious, but the first and most important requirement to being a successful estimator in 2021 is research.

Many estimators, especially older ones, have struggled with such a shift.

“Back 15 or 20 years ago, things weren’t really changing. Yes, new cars were being made. But nowadays manufacturers are changing procedures every day and EVs and hybrids are hard to get information on,” Haynes says, “and some people are still struggling to adapt.”

And that means searching everywhere.

Haynes will go to traditional outlets like I-CAR, or if a shop is certified, repair procedures that the OEM releases. But it also means looking on YouTube and Google for information on repair procedures, parts, and processes of similar jobs. If information is still missing, which Haynes says happens frequently, he’ll call other friends in the industry who might know. Estimators need to be “resourceful,” Haynes says. That might mean hitting five dead ends before finally finding the information. Estimators need to be ready for that challenge.

Josh Kuehn, a coach for Collision Advice

December 2021

who specializes in estimating, has seen a shift as well. Estimators need to be more aware of OEM procedures and the constant updates to position statements. That also means understanding developing ADAS technology and all the research requirements wrapped up in them.

That’s why Kuehn recommends always checking the OEM site first. It’s the most trustworthy and most likely to have the information the estimator needs. Most manufacturers don’t require the shop to be certified to access their site, which is another common misperception, Kuehn says. Take advantage of 24-hour or other short-term subscription options. The time the estimator will save scrounging the internet for the information makes up for the cost of the subscription.

Riane Twining, body shop manager at Preferred Collision Center in Muskegon, Mich., will even cross-reference information from multiple sources before doing a repair. She checks the OEM website, but also looks at I-CAR and uses Google. At least half of the work in the shop comes from DRPs. Another gold mine of information that

30

Read Up Three screens seem excessive?

Not for today’s estimators, like Riane Twining, who is required to do an overwhelming amount of research on each vehicle and its repair. In today’s industry, it’s the only way to guarantee safety.

Kuehn has uncovered is the various industry estimating systems.

“For a lot of people, whether they use one estimating system or three, there is a lot of information in the estimating guide that they’re not aware of,” Kuehn says.

In each estimating guide, there is a list of all non-included operations, Kuehn says, which are often missed by estimators because of the “daily grind” of being an estimator.

Including those will allow the business to be more profitable, a must in the current state of the industry, which is seeing profit margins shrink as parts prices go up and labor rates remain stagnant.

Kuehn also notes that those non-included operations lists might not list everything that can be deemed “non-included.” Kuehn’s rule of thumb is that if it is not listed as “included”, then everything else is non-included, regardless of whether or not they are listed as a “non-included” operation.

The estimating guides will include other small nuggets of information, like prepping raw plastic parts for bumper covers, rocker moldings and trunk covers.

fenderbender.com

Law 2:

Documentation is no joke.

One of the byproducts of COVID-19 was an accelerated move to remote adjusting from insurance companies. While it was already trending in that direction, the pandemic quickly forced estimators, both from nonDRP and DRP shops, to take on many of the responsibilities previously held by field adjusters, ranging from administrative tasks to taking photos and documenting and submitting supplements. On top of that, working with adjusters became harder as they couldn’t see the vehicle in person and there wasn’t a chance to develop a personal connection with the adjuster in the same way as they could before.

Adam Mette, production manager at Probst Auto Body in Dieterich, Ill., and 2019 FenderBender Award winner, has seen his role shift dramatically in the seven years he’s been in the industry, mostly as adjusters have been less present and, as Mette puts it, less knowledgeable.

Despite taking on absolutely zero DRP work, Mette says, “we are basically doing their job for them.”

As a result, a bigger priority has been placed on documentation and making sure the estimating process is organized. Not only do they need to fulfill the role of an adjuster, they need to make it informative enough to convince an adjuster who may have little knowledge of the vehicle, Mette says.

One area that has been affected is photos. When taking good photos, approval can become relatively easy. Mette takes photos of everything, and focuses on the quality of each. The photo needs to clearly show the issue in question. It can’t be a task that estimators simply check off on their long checklists. Mette estimates with good photos he gets approval 90 percent of the time.

Haynes stresses that the photo taking process is pivotal. All four corners should be photographed. They need to be clear and it should essentially replace line notes.

“It should get to the point where you’re taking photos and wouldn’t even need to explain anything. Photos alone should explain what’s going on,” Haynes says.

However, don’t replace line notes with photos. Having photos is important, but having a thorough description of the issue in the line notes of the estimate is one thing Kuehn emphasizes in his teaching.

“Your Your catchphrase should be, ‘make it hard for them to say no and easy for them to say yes,’” Kuehn says. “Line notes are the best way to do that.”

Kuehn says he sends back many of his students’ line notes

December 2021

because they don’t make sense and aren’t descriptive enough.

If done right, line notes will save time and reduce the stress on estimators. Just as an estimate’s photos should be able to replace line notes, detailed line notes should be as descriptive as pictures.

Include what particular parts are damaged and what needs repair or a replacement. Don’t ever give the insurance company a reason to question why something is on the estimate. Detailed line notes give estimators the ability to justify their claims, Keuhn says, so use them to their full potential.

31

fenderbender.com

T H E SI X L AW S OF MODER N EST I M AT I NG

Law 3:

Embrace Technology, new and old.

GETTY

To Kuehn, one of the biggest assets that not enough shops are using is the Blueprint Optimization Tool (BOT), created by the Society for Collision Repair Specialists (SCRS). When asked about the three most important tools/resources that a modern estimator needs, Kuehn said BOT software was second, behind OEM repair procedures.

“To me, it’s something that can be used by every shop, even if they are DRP-centric. It saves tons of time and automates a manual process that eliminates human error,” Kuehn says.

The BOT software will immediately identify labor operation, line items, non-included operations and other aspects of an estimate that can often be overlooked.

However, embracing technology doesn’t just mean trying out new products. There is plenty of older technology that isn’t being used enough, Kuehn says.

Top amongst those are P-Pages. They’ve been around as long as estimating systems have, but there are people who don’t know how to use them, Kuehn says. Commonly, shops will just use one of the three major systems—Mitchell, CCC, or Audatex. Shops should actually be utilizing all three, Kuehn says, as different insurance companies use different systems. If the insurance company’s preferred system doesn’t match with the shop’s, then it’s the shop’s responsibility to match the paperwork of the other systems. The process of manually copying an estimate from an insurer into the shop’s own estimating system is known as rekeying and can be a large time consumer for estimators. Using all three of the major systems will help mitigate that process by ensuring the estimators know the correct language, which can differ slightly between systems. Rekeying should be avoided whenever possible and should only be acceptable in a scenario in which a customer has already gotten an estimate from another shop.

Additionally, if the shop doesn’t know the other system, it might not know the labor formulas or operations it could be taking advantage of.

Another piece of equipment that isn’t used enough is mobile estimating carts, Kuehn says. Using a mobile cart, the estimator can have three screens up, one looking at the OEM repair procedures, another looking at a parts breakdown and a third in the estimating system. It is one of the easiest resources to help a shop achieve 100 percent disassembly and avoid supplements, but not enough people are using them, Kuehn says.

“Try different technology and make it work for you,” Kuehn says. “It is very helpful.”

December 2021

32

fenderbender.com

Law 4:

Be prepared for constant change.

Twining, the body shop manager at Preferred Collision, has worked in the auto body industry for nearly 13 years and took on estimating in 2018. From observing estimators in her earlier years, to just within the four years she has been doing estimates, the job has changed drastically. Understanding ADAS and the processes that make up the systems has been amongst the tougher duties to handle. Twining frequently goes through OEM repair procedures and the news position statements to make sure she is staying on top of the latest vehicle technology.

It goes hand-in-hand with research, but having a pulse on what is changing in OEM procedures is vital, Haynes says. Estimators should be subscribed to industry news outlets and specific manufacturer releases to stay on top of those OEM updates.

The constant change can be difficult.

December 2021

It has been for Twining, and Mette agrees.

The most important trait an estimator needs nowadays is patience, Mette says.

Reading repair procedures and staying up to date takes up a large chunk of his time.

That patience needs to extend to other forms of change. Mette has worked with plenty of different field adjusters and their varying degrees of involvement and knowledge. Plenty of adjusters Mette has worked with recently barely know anything about vehicles. That can make it extra frustrating when they push back and question the estimate that he writes.

“Adjusters are just given guidelines and that’s all they know. A majority of them have no idea. Explain why you're doing everything for them,” Mette says.

All of that extra effort means estimators hardly ever have a moment to breathe during the day. Keuhn has seen stress amongst

33

estimators increase during his time as a coach. He preaches the idea of a work-life balance and encourages estimators to “just go home” at the end of the day. Of course the work needs to be done, but overworking is going to lead to more mistakes and more work later on. Because of this, he recommends a 1:1 admin-to-tech ratio. Simply hiring more estimators will lower the stress and increase efficiency, he says.

Still, regardless of the amount of estimators the shop has, dealing with constant change is just part of the job description now, Haynes says. And it’s not slowing down anytime soon.

“We’re at the beginning of things evolving,” Haynes says. “There will be changes in paint, vehicle platforms, motors. Everything. So it’s absolutely necessary that you can change and are watching what’s happening.”

fenderbender.com

T H E SI X L AW S OF MODER N EST I M AT I NG

Law 5:

achieve 100 percent disassembly from the beginning.

Among the top goals for a shop is to achieve 100 percent disassembly. Doing so allows an estimator to complete a full estimate and understand every issue that needs to be addressed. However, achieving 100 percent disassembly has too often become more about checking a box than the actual importance of why it is done, Keuhn says.

“What I see a lot of shops unsuccessfully doing is, rather than concentrating on why something needs to be removed, they are only focused on reaching 100 percent disassembly,” he says. “A mindset shift is needed.”

It’s not about reaching some magical figure, Keuhn explains. It’s about removing

December 2021

parts to restore corrosion or to access the structure of a vehicle or another of the many reasons a car goes to disassembly in the first place. The main mental motivator shouldn’t be avoiding supplements. It should be about fixing the car correctly. When that is the main motivator, suddenly supplements become less common and 100 percent disassembly is achieved from the beginning more often, Keuhn says.

In practice, that means estimators need to be involved in the process. Keuhn likes to view the estimators as coaches who help guide the disassembly team through the process. Ask leading questions of technicians so you’re working with them rather

34

than forcing them to do something. In the same vein, that collaboration needs to start before disassembly starts and throughout the process, he says.

It also means having disassembly clearly organized. Keuhn recommends keeping the disassembly stall tidy, with replacement parts all in one area. Keep a running list of hardware, clips, screws and fasteners and make use of mobile estimating carts.

With the estimator providing an extra set of eyes and a different perspective than a technician, that should help achieve 100 percent disassembly, Keuhn says.

“It’s something a lot of shops struggle with,” Keuhn says.

fenderbender.com

Law 6:

Remember who you work for.

One of the biggest problems Haynes sees from the estimators is that they confuse their priorities. The No. 1 priority should always be to return the vehicle safely and in as close to pre-collision condition as possible, Haynes says. It is not to be best friends with the insurance companies and save them the most money. It is not to avoid ruffling feathers. If an insurance company isn’t covering a repair that fits with your shop’s number one priority, an estimator has to be ready to negotiate and not back down.

“Never lose focus for who employed you to do the work,” Haynes says. “Many estimators think they are working for the insurance company. No, you work for the customer. Don’t forget who the customer is.”

Haynes sees too many estimators who won’t challenge insurance companies out of fear. Fear that it won’t get approved. Fear that they are souring a relationship with the insurer. Fear that the customer will look badly on the shop if it is at odds with the insurance company. And while Haynes certainly doesn’t advocate for conflict, it has become a necessary part of the collision repair process.

“You’re the expert, remember that. And you’re liable,” Haynes says. “If there's an incident after the repair, the insurance companies will step away and it will be on you.”

“Stand your ground. They’re going to try to push you around,” says Mette. “Have the customer involved the entire time so they can understand the insurance doesn’t want to pay.”

Anytime a shop is getting questions or pushback from insurance companies, Kuehn recommends considering four negotiation questions: Is it required? Is it an included operation? Is there a predetermined time frame this needs to be completed in? And if not, is it worth it?

Those four questions guide Kuehn’s teaching of negotiation. If it is required, it should be pursued. If it is an included operation but the insurance company is not accepting it, it should be pursued. If the shop feels the fight is worth it, it should be pursued.

There are three other things to keep in mind, Kuehn says. First, set yourself up well for these conversations through your estimates.

The more explaining you can do in the line notes with the addition of quality photos and procedures, the less questions the insurance companies will have. Second, don’t fall for the “you’re the only one that charges for…”

“There’s an interesting thing that I’ve found as I’ve been teaching

December 2021

for the last three years,” Kuehn says. “For the thousands and thousands of estimators and shops I’ve talked to, every single one has been told by an insurance company that they are ‘the only one that charges for something.’ The ‘only ones’ club is pretty crowded.”

For that reason, come with information that supports you’re not the only one. Kuehn recommends the “Who Pays for What?” survey, which clearly outlines what percentage of shops charge for what operations. That should quickly debunk the “only ones” argument.

Third, remember that giving a concession as part of a negotiation is part of the job. And that just because you gave that concession once doesn’t mean that’s the way it has to be every time moving forward. Let the insurance company know that it was the shop’s choice not to charge for that this time around. That is not the expectation moving forward.

35

fenderbender.com

LEARN

|

GROW

|

WORK SMARTER

S T R A T E G Y

IDEA SHOP

CREATE A MARKETING PLAN FOR 2022

Your step-by-step guide for seamless marketing planning

December 2021

can feel overwhelming or perhaps you’re not familiar with the options that exist in terms of different marketing avenues.

That’s why Megan Williams believes it’s imperative to sit down and take a look at the year to create a 12-month marketing

36

game plan, for how you’re going to allocate money and what you’re going to do with that budget. The managing partner of 3P Marketing Solutions explains how.

As told to F E N D E R B E N D E R S T A F F GETTY

AS THE OLD SAYING GOES, failing to plan is planning to fail. Marketing is critical in terms of growing the business and it’s a necessary endeavor, yet also remains one of the most overlooked—particularly if there isn’t a plan. Creating that plan

fenderbender.com

some of this planning with you. We had an estimator that was super active and took pictures and posted on our social media account whenever we did marketing and she absolutely loved it. Just ask around—you’ll be surprised who jumps out.

2) Consider what your business needs.

The first thing that you need to look at is just knowing your business. Very occasionally do you come across the shop owner who is so packed that they could not handle another vehicle. But for the average shop owner, you need to know what you’re up against in terms of competition, your demographics, as well as what the competition is promising drivers. Are they giving them a free gift with a repair or are they promising super fast turnaround times? Are they really active out in the community and just very well known in that sense? Having that in mind is actually more important before you even get into setting a budget.

If you are one of those shop owners whose cycle time is already more than you would even want it to be, that doesn’t mean you shouldn’t market. It means your marketing goals should be different; that could mean a focus on hiring or a certain service, but not the traditional new customer acquisition.

A lot of people ask about what a marketing budget should be and that’s very personal. Typically, we recommend 5–8 percent of annual revenue; but if you can only dedicate 2 percent, make sure you have specific goals so that the 2 percent goes a long way.

3) Set goals for the year.

1) Find the right person with whom to work on marketing.

If you don’t outsource your marketing, identify someone that works within your shop who may be more than happy to do

December 2021

When coming up with a marketing plan, the most important factor is that whatever the shop owner comes up with, it needs to be feasible.

If you don’t have the actual manpower in the shop or the financial backing to do those things, sometimes they’ll just fall by the wayside. I would rather see someone start off small and work their way up to spending more.

Here are some solid marketing goals that could turn into effective marketing calendars:

37

• • • •

Participate in three community events.

Increase car count by 5 percent.

Gain 100 more Facebook likes in three months.

Increase capture ratio by X percent.

4) Outline the strategies you’re going to employ to achieve the goals.

A lot of people will do it month to month but I personally favor breaking the goals down quarterly because the four quarters coincided with the four seasons. So we would have deer hit season, winter weather season, spring car care, and summer road trips and back to school.

So, look at the four quarters of the year and pick what the four topics are going to be for each section. Then find some type of large public event or activity or some way to give back to the community in each of those quarters to keep top-ofmind awareness.

It’s also easier to take that annual budget and divide it into quarters, rather than monthly. That way you’re not feeling like you have to get everything in this month, but you’re giving yourselves a few months to get whatever the marketing goals are that you set the tasks that you want to get knocked out.

5) Adjust as necessary, but don’t stray too much.

I think it’s nice to have a few months of data or a few months to look at, to see where you’re at.

Of course we would want to go through and maybe add in pockets or re-record a new TV commercial, or radio spot catered to whatever is going on at the moment, but with everything else, you can still leave it where it’s at. Continue with what you were planning to go with as long as it’s not a financial drain to add in current event happening awareness or marketing endeavors.

Consistency is going to be a huge asset in any marketing endeavor. But you don’t want to be tone deaf to what is going on presently. I personally recommend only scheduling one to two months of social media content at a time, so it doesn’t get too disconnected from what’s going on or you forget what’s scheduled. That way, you also leave some wiggle room in your social media content to react in the moment.

fenderbender.com

STRATEGY

SA LES+M A R K ETING

OPTIMIZE YOUR NEGOTIATING

Negotiation tactics to leave you on top

GETTY

By P A U L H O D O W A N I C

W H E N M I K E L E I B, now the vice president and director of operations at Precision Body and Paint, first entered the industry, he was told “you’ve got to fight the insurance companies.”

In Leib’s mind, that didn’t seem right.

December 2021

38

fenderbender.com

He had spent 15 years in the automotive industry but outside the collision repair world and thought “it can’t be a fight every time, I won’t last five years in this business.”

Now, just a little more than five years since he entered the industry, Leib is still here helping his Precision Body and Paint thrive. And while he admits it can still be “combative” for small moments, he’s developed negotiating strategies that avoid a fight and have resulted in getting paid for more jobs. For a business like Leib’s, which does a lot of work on high-end cars, getting approval for insurance payment is massive in maintaining profit. It has also led to a less adversarial relationship with insurers than when he entered the company a handful of years ago.

That’s become increasingly important since COVID, which pulled many adjusters out of shops to behind a screen doing work remotely. The lack of relationshipbuilding with those adjusters has hurt many shops’ bottom lines, says Dean Massimini, president of AutoTech Collision Service, as the opportunity to create a rapport has diminished.

“There’s a lot of curveballs that are getting thrown lately,” he says, “and the virtual world is making it tough.”

Massimini maintains there are still productive ways to interact with insurers that can lead to a higher approval. He’s seen it in his own shop, as they’ve grappled with the new reality and succeeded in spite of it.

And while there is no one-size-fits-all negotiation method that will work every time, Leib and Massimini share the methods and mindsets that led their shops to continue to thrive despite the challenges.

Embrace a “passive aggressive” mindset.

Negotiating can often feel like a doubleedged sword. If you’re too passive, worried that the insurance company won’t recommend you in the future unless you comply, you’ll get taken advantage of. Come out too aggressive, too adversarial, and a productive conversation is unlikely. It could result in an insurer refusing to work with you, leading to sunk costs with the customer and an unhealthy working relationship with the insurer.

Like most things in life, the answer is

December 2021

somewhere in the middle, Leib says, which is why he describes his approach as “passive aggressive.” It comes across not as insulting or confrontational, and you get a better result.

“It’s a balance of both. If you’re too passive, you’re not going to get paid on half your sheet. But if you’re too aggressive, you’re probably not going to get paid on half your sheet.”

To Leib, that mindset means he will never raise his voice to an insurer. He’ll never swear. He won’t change his tone or demeanor. That’s the passive. The aggressive is being insistent on the right way to do things, not backing down and negotiating with facts, not emotion.

If an insurer is insistent about its way of doing things, Leib won’t antagonize them.

His response: “I’m not understanding where the disconnect here is. So, it’s your position that you don’t want to follow manufacturer procedures to restore a vehicle to pre-loss condition, in a safe manner, so your customer, our mutual customer, can drive off in a safe vehicle?”

That usually elicits a quick response, followed by the mention of “one-time concession” and the repair being covered.

“Until we get out of the old ways from the old shops that feel like everything needs to be a verbal altercation, we’re going to continue to fight that. I just try to preach logic. Logic gets you paid,” Leib says.

Transparency wins out.

For both Leib and Massimini, the overarching tactic that is most successful is getting the customer involved in the process. Leib always CCs customers into the shops’ email with the insurance company. Massimini will do it occasionally as well.

“It’s easy for them to say no to me but when they have to say no to the customer… that’s when it’s effective,” Massimini says.

“I’m not going to shield insurance company’s from a customer’s wrath.”

It’s a simple yet effective strategy to ensure the insurance company can’t pull any tricks. Leib also does all of his negotiating with insurance companies over email, giving him a running receipt of everything the insurance company says. He includes the customer in almost all of those interactions. Those two things avoid any misinformation reaching the customer.

Leib has had insurance companies call

39

him and complain about including the customers in emails, calling it “unprofessional.”

To Leib, what’s more unprofessional is the insurance company refusing to pay a claim, keeping their client off the road for longer.

“I just keep spinning it back on them.

It’s not me creating the delays,” he says. “I’m not doing anything that is fraudulent. I’m trying to get paid for what I do and I’ve had some really good success with that.”

Negotiation doesn’t stop at insurers.

No matter how much information a shop throws out, there are still some insurance adjusters and companies that won’t approve the repair plan, Massimini says. It doesn’t matter what the shop says or does.

Some are just “unbreakable.”

Massimini has contemplated just not taking work from customers that use those insurance companies. He admits it’s “tempting”, especially when business is booming. But he doesn’t do it.

“I tend to keep hoping that tomorrow brings a new day,” he says. “The very next claim could be the one that’s the difference.”

That doesn’t mean Massimini spends days attempting to get paid for something that he knows will almost certainly won’t be approved, but he will “always put in the time.”

If the pushback continues, Massimini then looks to the customer. He’ll forewarn them about their insurance company and discuss the troubles he’s been having. He’ll recommend DRP shops in the area that will do the work how the insurance company wants, but then he’ll also begin “negotiating” with the customer.

Massimini recalls a specific situation with a customer, whom he sat down with one-on-one. He discussed the options and outlined why his shop was doing what it was doing. The customer didn’t come with the intent of paying out-of-pocket, but because Massimini sat down with him and explained the situation, he agreed to get the repair at his shop.

Massimini has seen that effort pay off numerous times. So, if the negotiation with the insurer stalls, begin the negotiation with the customer.

“I don’t give up that easily. I can get frustrated and beat down but I’m not going to give up,” he says.

fenderbender.com

COLUMNS

PROCESS DRIVEN

What Do You Want?

And the soulsearching to get there Anyone who is looking at the next stage,

whether it’s selling or whatever it is, they really have to evaluate what they want for themselves and for their business. There are a lot of different routes you can go depending on what that may be.

Each owner has to decide what’s important to them. You have to decide, for me to get to the selling table, what’s it going to take, what are my fears, and what’s most important. Even if you are just ready to walk away and never turn back, that’s fine, but that list of what’s important is going to be different than mine. You have to look at that and make sure that whatever deal you’re doing is meeting those needs and is in line with what your real real goals are. That may mean to walk away with the most money possible, it may mean to walk away and the name stays the same. You have to figure that out and it’s different for everyone.

When I sold, I knew I wasn’t done. A lot of guys in this business could probably walk away, but I wasn’t ready to walk away. When we were making the decision to sell and we were right at the closing date, my wife said she’s so excited to finally be my first wife. My head was so in the clouds because of everything going on around me that I looked at her like, “What the heck are you talking about? You are my first wife!” She goes, “No, the shop has always been your first wife; I’ve always been your second.” It’s things like that, when I look at different opportunities, as of today I have the full support of my family because they see my wife feels she is my first wife.

As I get involved more and more with Classic, which I have been fortunate to have had the opportunity to do, and I have conversations with my family (I have two teenagers and my wife who have stuck

December 2021

through 20 years of this lifestyle of business owner/husband), they can see the difference. They can see that I’m having fun.

Getting even deeper beyond what you want for yourself, you also have to consider what you want for your business and your employees. I can tell you integrity was a huge thing for me in terms of having a sale or partnership. I love the fact that the integrity of the leadership team at Classic is one of their most important things. Once you decide what you want for yourself, your employees and your business, it’ll guide you. For me, the deal made sense because I was able to go to the next stage with a pretty wide variety of options for my future. I feel like, to a certain degree, I was in the minor leagues and I wanted to be in the big leagues. I feel now I have the opportunity to play at a level that as the owner, sole owner, no private money involved, I would have never necessarily had that opportunity.

I go back to, if you want to be done and walk, there’s ways to structure that.

If that’s not what you’re looking for, then just make sure that you’re structuring that next step or that sale to give you options that are important to you. You have to have those heart-to-hearts with yourself, maybe even diving into some people to help, whether it’s advisors or confidants. I listen to podcasts with guys who make deals and give advice.

A lot of it is figuring out what’s important to the person you’re making the deal with. You want to know what their fears are and make sure you’re addressing those fears. Also, what’s it going to take to get there? You have to know what it’s going to take to get there. Soul-reaching about the next stage and what you want as the owner is the only way to get there.

41

R YA N C R O P P E R is the Alaska regional director for Classic Collision, formerly Able Body Shop.

EMAIL:

rcropper@ablebodyshop.com

ARCHIVE:

fenderbender.com/cropper

fenderbender.com

STRATEGY

Unexpected Revenue Bill Jobe (left) runs perhaps one of the most impressive dealership body shops in the country, yet he still makes an effort to retain small jobs. In fact, it’s part of his secret sauce.

CASE STUDY

SMALL JOBS, BIG BOOST

Taking on half-day jobs can be more than just a slow day strategy

GETTY

By PAUL HODOWANIC

W H E N B I L L J O B E T O O K O V E R as collision director for Greenwood Chevrolet Collision in 2013, he was looking for a way to differentiate his shop from competition while infusing the business with more work from new customers.

Clients saw the shop as just a normal dealership, which frustrated Jobe, as the shop had actually gone away from the traditional dealership by obtaining other certifications. That led to a realization from Jobe; they had to reimagine the shop’s process. And where he saw the biggest opportunity for growth was in small jobs.

He began leaning much more on quick fix, half-day jobs to help establish the shop in the market.

December 2021

42

fenderbender.com

STRATEGY

GREENWOOD CHEVROLET COLLISION

The Problem

The appeal of small, half-day or shorter jobs is easy to identify. It can help supplement work during slow periods at the shop and keep everyone busy while establishing strong connections with customers, something that often doesn’t happen in an industry that doesn’t require regular check ups. However, in actuality, executing small jobs can be difficult. The challenge then becomes, who is taking on the extra work and making sure the shop employees understand why the small jobs are part of the business, Jobe says.

As a dealership facility, Jobe was disappointed that much of the customer base was coming to them only for warranty issues.

Or that the overall community thought they only worked on one type of vehicle, because in actuality, Jobe said the center operated essentially as an independent, pushing themselves away from dealership work and going after certifications that others in the area didn’t have. As a result, Jobe saw an opportunity in small jobs that could bring new customers in and help establish a connection for the long-term.

December 2021

GREG GREENWOOD

LOCATION:

AUSTINTOWN, OHIO

STAFF SIZE:

19

AVER AGE SHOP SIZE:

36,000 SQUARE FEET

NUMBER OF LIFTS/BAYS:

30

AVER AGE MONTHLY CAR COUNT:

200

ARO:

The Solutions

The Background

OWNER:

$2,184

Follow a “fill-in” board.

The process for selecting which jobs to take is pretty easy for Jobe.

“We will never turn anything away that comes in the door,” he says.

That puts greater pressure on making sure the shop is organized and technicians are efficient. Jobe uses a simple white board called the “fill-in” board. Whenever technicians have extra time, whether that’s because they are waiting for a part or approval on an estimate or simply because the shop is slow, they will go to the board and take a small job to complete.

“We have some aggressive technicians who will take two or three of those jobs everyday,” Jobe says, “So we have to be very cautious about scheduling.”

Jobe has an in-house paint and dent removal technician who takes plenty of the jobs, especially recently as many of the small jobs consist mostly of dent removal.

The shop also has an apprenticeship partnership with a local career and technical center. The current apprentice is “an essential part” of the small jobs getting prepped and turned.

“The main reason this works is the staff.

They are knowledgeable, have plenty of contacts in the industry and are motivated to take on more work and help establish good relationships with our customers,” Jobe says.

Understand revenue isn’t king.

Jobe’s initial push for smaller jobs was to

43

TOTAL ANNUAL REVENUE:

$4.5 MILLION

attract new customers. He felt too much work was going to nearby independents and dealerships just because customers didn’t know they could come to the shop.

Thus, the priority for smaller jobs began as a marketing campaign. While Jobe hoped this would help his bottom line down the road, that was not the initial goal. It was just to establish a presence.

Eight years later, that has remained true.

It is still a marketing tool, but it has stretched out to the larger community. Now, many of the smaller jobs have become pro-bono work.

The staff has taken on small projects from the local VFW and the police department, painting vehicles in stealth black while also adding some Greenwood Collision advertising. They’ve also painted gokarts for local high schools and a van for local breast cancer awareness. It’s been a perfect mixture of helping the community while also making it worthwhile for the shop.

“People know who did it and why we did it,” Jobe says, “and truthfully, those projects are less expensive than buying a 30–second spot on TV. It’s cheaper for me to do that, doing the police car, the breast cancer function and it actually helps someone.”

fenderbender.com

STRATEGY

Small Job Misconceptions Unsurprisingly, a dealership body shop has a unique business model—and leave it to manager Bill Jobe to take it even one step further by courting small jobs (and yes, it is a good move).

Especially since COVID-19, as communities have rallied around local companies, Jobe has used these smaller jobs to become visible to the community.

“The common thought is smaller jobs help you during slow periods, which they do,” Jobe says. “But it also does help to reach out to the community. I believe that it’s a huge factor.”

The Aftermath

In 2016, three years after Jobe prioritized smaller jobs, they made up roughly 20 percent of the shop’s work. That has decreased some in the last five years, Jobe says, as more people are leasing and car companies are letting more vehicles come back with minor dents and paint imperfections, leading to less demand. However, specific areas

December 2021

of work have increased, such as door dings and other dents.

The intentional prioritization of smaller jobs has dramatically reduced cycle time by around two days. The company most recently spent $340,000 in 2020 to enhance the paint department, adding several booths. Now it has three prep stations and five booths. The investment has also helped clear backlog in the paint department. The department hasn’t been backlogged in about a year.

Overall, the most noticeable shift has been the company’s standing within the community, which took a large jump by taking on smaller jobs, both for the everyday customer and for large organizations.

“We’ve tried to be involved in anything and everything that we can and it has paid off for us,” Jobe says.

44

The Takeaway

Taking on smaller jobs isn’t a no-brainer decision. To succeed within it, shops must have a clear organizational structure and a team that supports the work. If it is successful, it can be a net positive for the business not only during slow periods but during busy seasons. Jobe’s shop gets most busy in the summer months, but that doesn’t stop it from doing smaller jobs. They can not only provide additional revenue and help lower important KPIs like cycle time, but they can also serve as a useful marketing tool and an easy way to establish a customer base.

“The idea is that if they know you’re there for them and give that great service on a $150 job, where do you think they’ll go when they have a $4,500 crash?” Jobe says.

fenderbender.com

Big, Grey, and Available Today.

The Spanesi® 106 EXT Structural Straightening Bench is designed for larger and longer vehicles. The 106 EXT easily accommodates large work vans, light and medium duty trucks, and fullsize SUVs. The 106 EXT is included in OEM certification programs around the globe. Contact Spanesi Americas for a current and complete list of programs.

Spanesi Americas, Inc. 123 Ambassador Dr. STE 107 Naperville, IL 60540

106 EXT

Structural Straightening Bench 106 EXT Structural Workstation Includes: 7 Crossbars 14 Mounting Locations Bench With Rack Gears Lift With Control Box Loading Trolley Positioning And Ascending Ramps Pulling Column Universal Jig System Loading Capacity Length Width (Up To) Pulling Force

5,000kg (11,000lbs) 6m (19.7’) 2.1m (7’) 10 Tons

224-SPANESI (224-772-6374) www.spanesi-americas.com facebook.com/spanesiamericas

STRATEGY

FINA NCE+OPER ATIONS

THE INs AND OUTs OF EMPLOYEE GOALS

Encouraging your team members will pay dividends for your business

By F E N D E R B E N D E R S T A F F

I N T H E PA G E S O F FenderBender, it’s not a rare occurrence to see shop owners talking about goals—typically their own. And while having and striving toward achieving goals is an indisputable important part of business ownership, so is doing the same for your employees. Chances are, your employees have goals and dreams of their own and by helping them achieve those goals, you can set yourself apart as a stellar manager.

Doing so can even be a retention tool, says author and leadership expert Dorie Clark.

FenderBender recently caught up with Clark, the author of newly published The Long Game, to discuss how to encourage employee goals and how you, as the leader, can help them grow in their personal and professional lives.

Why is it important to encourage an employee’s goals or dreams, especially their goals outside of your workplace? What can the impact on your business be?

How can this be used as a retention tool?

The concern, which you allude to in a subsequent question, is that if you’re helping your employees pursue their dreams, those dreams might lead them right out the door.

But the truth is it is extraordinarily rare in contemporary business life for someone to be a lifetime employee; odds are this person will depart your company at some point.

And the real question is, do you want it to be a year or two from now where they depart for a competitor because they’re unhappy for some reason, or they can make a little extra money per hour, or would you rather have an engaged and inspired employee who leaves after a number of years because you have helped them level up in their careers and in their lives and they’re moving on to pursue something that is truly meaningful?

We have to recognize that there is the possibility that in helping them pursue their goals, that may actually equip them with new skills that they need so that they could advance in your company in ways that may not have been possible before given the existing skill set with which they arrived.

It’s possible that pursuing their dreams may lead them to a different job or a different career, but it is also possible that it equips them for long-term growth within your company that may not have been possible previously.

How can you help your employees create SMART goals if they don’t have any experience doing so?

Well, ultimately when it comes to goal creation, the first step is helping them identify what they’re interested in and their vision for their overall life And more specifically, their career over different time horizons. Where do they see themselves in 10 years? How about five years? How about one year from now? And then from each of those places, it’s a question of identifying the steps that are necessary to get them there and boiling it down to current action steps and things that you actually can accomplish. If you have a 10 year goal to do X, but it turns out that you need some kind of a deGETTY

It’s certainly important to encourage an employee’s goals and dreams, because that enables them to feel more motivated and excited about life in general, which translates to feeling more positive about work.

And especially if you are the engine of encouraging them to pursue their dreams,

that creates a sense of loyalty.

That sometimes is rare in the business world. They will be extraordinarily appreciative that you are taking enough time and interest to understand what their goals are and help them think through how they might achieve them. And that ultimately leads to better performance and greater employee retention, at least at least in the short term.

December 2021

46

fenderbender.com

flexibility in their valuable employee, it may not be a bad idea to have an in-depth conversation about what that might look like. Obviously, if they want to cut back so much that they can’t do the job, that’s a problem. But if there are ways that you can be thoughtful about what their needs are and think about shifting some timing so that they are able to do important things, that is something that can actually engender extreme gratitude and loyalty, and may help you retain your employees.

How can you make sure to do this consistently and regularly?

gree for it, well, then, all right, we’ve got to get that degree. How do we get that degree? Well, certainly you have to apply for admittance. You may have to take a test in order to qualify.

It’s all helping them understand how to go from the general, the big-picture goals, to the specific tactics, and then putting that on a timeline. If you can help them think that through, that is extraordinarily valuable for people who may not have a lot of experience doing it.

What kind of goals should you, as their employer, be encouraging or helping them with?

There are a wide variety of goals that one could have. Certainly the obvious candidate is professional goals about how to level up certain skills that are relevant in the workplace. I have a goal, for instance, to be better at delegation or I might have a goal to be a better public speaker.

You might also have an employee with broader goals. Perhaps there is an employee whose health has not been great and they want to get back into shape. That’s certainly something that, again, is a win-win because they will likely be healthier in their performance and energy levels will be better. And so thinking about how to encourage and support that.

People might have family goals that they want to be more attentive with their family.

This is the place where you might rub up against something—they want to spend more time with their family, but does that mean that they want to cut back on hours at work? This is the time when we really have to walk our talk on values. If someone is looking for some

December 2021

Typically most companies have some form of regular performance evaluation, and it’s not a bad idea to think about including a broad conversation about their goals, both for their work inside the company and their general life and career goals so that you can get a sense of what they care about and where they want to go.

Because there may be ways that you can help facilitate that—maybe it’s even small things. They want to get better at X, Y, or Z, and you could sign them up for a subscription or a training class.

What if some of your employees don’t really have goals for any number of reasons? How can you help them develop those?

Well, you know, it’s not mandatory. Of course, for somebody to have goals, you don’t want to force it down their throat. But one strategy I talk about in my book is what I call “optimize for.” And I think we often put a lot of pressure on ourselves about finding our passion or our meaning, but ultimately the way to that is not by thinking so hard about what it is. The way it is by discovering what we find interesting and then just pursuing more of that. So, helping your employees actually think through, well, what parts of your job do you like best? In an ideal world, what would you be doing more—or less—of?

What do you like to do in your free time?

By thinking through that, you can get patterns and can begin to understand, oh, this person really seems drawn to more mathematical or quantitative stuff, maybe we should see if there’s ways that we can encourage them even more in those directions.

What if they set goals that result in them changing careers or leaving your shop? Is that OK? Obviously we don’t want to expedite driving

47

people out the door, but again, it is unlikely that you’re going to retain and employ them forever. If you can provide a pathway for them so that you are encouraging, supportive and helping them advance within the context of things that matter to them, that means that they are extremely likely to stay with you as long as it’s feasible. For instance, if someone has a goal of changing careers, that often takes quite a while, and if you are supportive of them, that’s going to make you an employer of choice during that extended process while they’re doing that.

Also, we don’t necessarily have to see it as saying goodbye, depending on what their goal is. Again, they may be training in such a way that they can advance within your company, or they may be developing a skill that could be quite useful. So, there’s a lot of possibilities.

Would you recommend helping them create short, midand long-term goals? Or what should the frequency be?

I’m a fan, certainly, of short-, mid- and longterm goals. I think that we don’t necessarily have to have a magic number, per se, but ultimately it’s useful for people to ask themselves the question, “Where do I want to be in, you know, a decade or so?” Any long-term goal, if you’re going to achieve it, you probably do need to be starting in the short term.

Again, I don’t think it makes sense to force employees to have a goal. That’s counterproductive, but what is very productive is helping employees who do have goals think them through and show them that you care. What’s also helpful is introducing employees who may not really have thought a lot about goals to the concept, to see if they’re interested.

If you’re helping team members do this, is it important for them to see you, as the owner, also working toward and achieving goals?

Absolutely. Management is not dissimilar to parenting in that people learn far more from you based on what you do rather than what you tell them. The best way, if you believe that it’s useful for your employees to have goals, is to encourage.

Adherence to that is to be a role model and to fulfill that for yourself because when they see you having success based on the goals that you’ve set, and the actions that you’ve taken, that can often be really encouraging and really inspiring for them.

fenderbender.com

COLLISION C A S T

T H E N E W, REVAMPED COLLISIONCAST W E E K LY EPI S OD ES FEATU R I NG SHOP OWNERS, SP E C IAL G U ESTS , LEAD I N G INDUSTRY V ENDORS A N D F E N D ER B EN D ER COLU MNISTS

LISTEN AND SUBSCRIBE

PODCASTS

STITCHER

POCKET CASTS

COLUMNS

IN THE TRENCHES

Clear Your Vision The makings of a great leader

JOE GRETO

Wow, can you believe this year is nearly

over? I hope that your professional and personal lives have been full of significant and positive events this year and that you have been able to positively influence your teams and colleagues in your business. Something special that happens around this time of the year is the recognition of The Best Workplaces in our industry as nominated by you, our loyal readers. FenderBender is looking to highlight the shops that go above and beyond in helping develop their employees, both professionally and personally, to build an all-star team and retain it.

I am excited to see who you all believe is worthy of this recognition. As I have been thinking about who I will nominate, I realize once again that my vote will be based on the character and characteristics of the people I believe are deserving. I believe the best leaders have some of the best vision into the wants and needs of the people they support and mentor.

These leaders have developed the ability to see themselves clearly and also see their peers and direct reports through the lens of genuine care and respect for people.

Great leaders have virtually visited the opticians office to pick out some glasses—corrective lenses, if you will. Many of us are affected by a physical vision affliction known as nearsightedness, or “myopia.” In the physical world, this condition can be corrected with glasses or Lasik surgery so that we can see things clearly even at a distance. In the business world, with regard to the world of emotional intelligence and leadership, myopia is when everything in life is about “me.” I can see really well up close and I can be very selfabsorbed and focused on myself. Meanwhile the people in the distance, their needs and wants and issues remain foggy and blurry because I am so self-centered. Great leaders have had Lasik performed on their heart in order to clearly see and care about others.

Farsightedness is the condition where you can see other people at a distance. It’s where you can dissect and discern their flaws from 100

December 2021

yards away, but you can’t see your own flaws and shortcomings. You’ve lost the ability to be introspective and ask the hard questions of yourself to see if there are areas in your life that need work so that you can better lead and relate to people around you. Great leaders put on reading glasses or “cheaters” to see up close and personal.

Those who don’t work on correcting farsightedness often find themselves affected by blindspots. These blind spots—things like envy, insecurity, irritability and pride—can be clearly seen by those around you but you just can’t see it. Great leaders have blind spot monitors in their lives. These monitors are people that you trust to point out your blindspots that you may not recognize. Great leaders have their own mentors that are invaluable in helping you become a better mentor yourself.

Astigmatism is another affliction that great leaders may need to have corrected. This is where your vision of other people is blurred and you begin to assign value to others based on their size, shape, color, ability or disability, and many other outward traits while never acknowledging the person for who they are inside. We are in a culture today that cares more about what we see in people so we can pass judgement on them. Great leaders get to know the person for who they are without the prejudice of cultural norms and our own skewed thinking. When we judge people, we fail to see them for the moldable masterpiece that they are.

As you can see by now, there is one thing that all great leaders do well: They see people and situations clearly. That doesn’t mean they always get it right, but they’re self-aware enough to have stopgaps in place to help them with their weaknesses. In my career, I’ve always been very fortunate to have people in the industry that took a liking to me. I was smart enough to realize that it would be in my best interest to listen to them and take guidance from them when what I was doing needed improvement. That’s how you can actually positively influence those around you, and it’s what ends up creating a great workplace.

49

S T E V E M O R R I S is the

director of operations for Pride Collision Centers, a seven-location MSO located in Southern California.

He is an Accredited Automotive Manager (AAM) and ASE-certified master technician.

EMAIL:

stevem@prideautobody.com

ARCHIVE:

fenderbender.com/morris

fenderbender.com

COLUMNS

OUTSIDE THE LINES

My Industry Wishlist Hopes for a better collision repair industry in 2022 top 10 wishes for our industry.

1. Labor rates increase substantially. Don’t go blaming the bill payers, even though that’s the easy way out. We have to look in the mirror to make this wish come true. I can’t think of many things that cost the same as they did last year. From lunch, to gas, to new car prices, inflation is here—not to mention the cost of our staff is increasing. The days of increasing the labor rate $1 or $2 per hour should be distant memories. The time is now to charge fair market value for the highly skilled services we offer.

2. Supply chains to stabilize. While it can’t last forever, many experts predict more of the same with supply chain shortages in 2022. It would be a relief to all parties in our industry to see parts orders filled within normal market expectations.

Until that happens, one of the best ways to combat this is to write a complete estimate up front. Realizing we need a part at the end of the repair is far more costly than it was in the past.

3. An influx of new techs. Remember this is a wish list. The labor pool in general is likely to be shallow for the foreseeable future. However, there are still young people getting into this industry. If they aren’t coming to your place, ask yourself why. Is your place attractive to new techs? Is your culture what this next generation is seeking? You can find a plethora of information online stating that salary is not their first priority. If you are not getting the results you want, change your approach to finding new talent.

4. The talent revolving door will close. Tying in with wish No. 3, it would be nice to see technicians settle in for the long term at their current locations. The generation that worked at one shop for their entire career is retiring. It’s time to take a fresh look at what it takes to keep people wanting to stay put. Appreciation and flexibility are at the top of that list.

5. Paint calculators will become the norm. A paint calculator is an excellent modern tool available to all of us to determine what we should charge for materials per repair. The method of allowing a certain dollar amount per refinish hour is archaic and belongs with the dinosaurs. We are in full control of this one; if you don’t have one, it’s time.

December 2021

6. Consolidation slows down. The Romans Group announced at SEMA they predict the pace of consolidation will increase in the coming year. While I agree with their prediction, I don’t think it’s a positive for the industry as a whole. While my wish may not come true, it should serve notice to start developing strategies to compete with companies who have the resources the large MSOs have at their disposal.

7. Estimating system enhancements. In the 25 years I’ve been in the industry, I’ve seen some great advancements in technology. Reading what’s coming down the pipeline with estimating systems does excite me, but I’d like to see far more enhancements. That includes OE-accurate parts pictures, build data, and repair procedures in the estimating platforms will benefit all the stakeholders involved.

8. The dawn of specialization. I believe the road to success is to specialize in repairing specific OEs. If a shop works on only 2-3 manufacturers, it would eliminate half of my wishes from this list. We would become so efficient we wouldn’t need to raise the labor rates. The understanding of the parts needed on each vehicle would allow us to get ahead of supply chain issues and rely less on information providers to give us the data we need to repair them. Becoming an expert in certain lines is a sustainable path for the independent shop.

9. Another wake-up call. In 2017, there was a lawsuit in Texas that had ripple effects throughout our industry. While I certainly hope it doesn’t take a horrific vehicle accident where people are severely injured (as was the case in 2017), I wish there is another event in our industry to rattle our cages and help us make a quantum leap forward.

10. I get to return to FBMC in 2022. This past year I wasn’t able to attend the FenderBender Management Conference. It is always good to get away from our shop and interact with industry leaders.

I went to the first five and every year, it was worth the time and financial investment. This industry is tough. Taking time to learn from others who might be highly proficient in one aspect of their businesses helps me learn from both their mistakes and experiences to help improve our business when I get back home.

50

J A S O N B O G G S is the

owner of Boggs Auto Collision Rebuilders in Woodbury, N.J. He has attended the Disney Institute and Discover Leadership, and has studied lean manufacturing processes.

EMAIL:

jason@boggsauto.com

ARCHIVE:

fenderbender.com/boggs

fenderbender.com

STEVEN PARKS

As 2021 becomes history, it’s time to look at my

MATCH.

Advance Professional is the exclusive seller of Dynacoat; the perfect match of service and color technology. But that’s not all — we also provide the trusted brands, specialized training and reliable delivery you need to serve your customers, all backed by a dedicated technical team that puts you first.

Learn more about paint, body and equipment at my.advancepro.com/pbe.

KEEP YOUR

PAINT FLOWING thinking about converting to a new paint line?

Our team will keep you up and running with minimal disruption, offering every resource you need.

• The right products for your business mix • Dedicated technicians to help train team • The best allied products for optimal performance • OEM Certifications

866-711-5235 • finishmaster.com/wecanhelp WE ARE HERE TO HELP – FROM START TO FINISH