FenderBender - May 2022

FENDERBENDER.COM / MAY 2022

A RECIPE FOR RECRUITMENT

PAG E 4 0

WHAT’S YOUR SHOP’S STORY?

PAG E 36

Strategies & Inspiration for Collision Repair Success

COMMUNITY CHAMPIONS SISTERS COME TO THEIR COMMUNITY’S AID IN A BIG WAY PAG E 30

Community Saviors With the help of their family-run body shop, Taylor and Lily Freer have raised nearly $500,000 for local charities.

+

MENEFEE:

STOP WRITING ESTIMATES

PAG E 47

.A.

U.S CO. IN

OT0OLBR/ 266373K25GLB M D R FOVWR: 58A8R GAWR: Y B .

G D RE 8KG 6SL F

LE M VEH01IC/ 03 27 35LB

RIN CTU A F ANU E LB R M0 4 O 6 6 L8I C A B LN D T 2 ⁄ O 2 A RR APP ER , ON TA M C. 0 O YCOK Y , I N 6 6 8 L B A L L, B U M PF E C T .

T : 2 TO E U Y EF BY F D . K E N T R F RR M S S A F E T I N A B OSV. C A R M S E N O W S GA O N F I C L E A R D H O W P A ICL VEH 3 L BL E C V E HS T A N DR E S 0 0 3 2 CTU 000 R 4 HIC TOR N GVWI S V EL M OV E N T I AON U F A 0 0 0 0 0 TH DERA PRE F M 0000 70 FE EFT TE O 000 082 A A H K T E D EPG .A. TH L -- C I N U . S 0 3 ACVMADE 3 E 4 A 2 ⁄ L 241 : 4 Q- 0 1 A ⁄ U R T C ⁄ ⁄ TM: A ON

5/ FRO P26 R17 R A RE 5/70 6 2 E P SPAR

WITH S TIRE S RIM LD PSI CO

150 5 /70R1 WITH S P263X7.0J kPa/35 TIRE S 1 240 DATE:NT GAWR: OR RIM D AT L MOT A FRO 40KG R16SL L R E O D C PSI 12 5 /70 5 BLE FE PLICA F001883 P23 7.0J Pa/30 P A BOVE. L A L X 0 k N A 6 T W 1 205 S TO SHO NFORNMDARDS INUFACTURE AT O C E N L EHIC Y STA OF MA 00000 THIS IVCLE SAFETHE DATE 0 00 VEH CT ON T 0000 0 EFFE 0000 B DS0: 3U51 VIN: E: MPV 5 R F0 3 TYP RC: 1 TR SPB D E L X V R A S K 4 5 UTC P / P T UA TR T NT: EXT P BRK IN GP WB 4 114 NING ATH: WARJURY OR DoEor.

0000

AA5

0000

STK

A

I AUTO DATA LABELS INVITES YOU ETO MISS ATION

JOIN OUR GROWING FAMILY M ICLEINFOR Gasoline H E L V RO : Fuel T CON

OF SATISFIED LOYAL CUSTOMERS 15 : 20 IER2 ified ual tions V / T gula s: LD / ULEV q e r o t d C s / st : P orms Conf EPA clas ss / stds 11 1.2L U.S. ornia cla XV01.80 05 Calif p: FGM XR00958 D: I I Grou : FGM WC, OB Evap HO2S/T SFI/

S IN st the dhat RIOU t .

ID SE an againcoversloyment O V A le TO not e seat g dep

by placing your label order via one BAG Do us RSVP ba or E ABILRE LATÉRAL ••Dboloncokt sideer’sairmannu. al f D I T S N E own atio SRSSIN GONFLA L INFO Seere inform ISSEMof these 3 easy ordering options : NTRO mo VERESTBLESSSU: RES porte.

O COUS ) A C ION RD LLE e la (SRS ÉVITE MORTE s contr e EMISS 016 E POUARVES OU puyez pauvre-siègment du L C HI s: 2 GR vous ap as un co déploie E n V o i p e le r t u r N your photos to the Website: • N’utilizeuzt bloqueble latéraul.cteur poUpload la • qui pe in gonfla du cond nements. egu aso to r

s LDVFuel: G sta form T2B4 n in o : C ale issi PA II s N E r O . m I o AT U.S OBD : Not f rnia e FI R2 : ORMContact REAUs F N I FED fornia Califo AC/TC/D .

G s b 2 N I i 6l D NT 7 JW 7 O A S/C R r O Cal Rep F o L your Contact LKQ/Keystone Local Sales D kg -HO2 V02.3V N R 2 5 4 A W 3 / L O2S FMX BV TIRE TOTA ver exceed ER’S WC/H roup: G 0125N OWN OR ne T E ld Y u E IT R o S X -G AC Email photos: o sh URE your AL F Z G CAP 2.3L p: GFM d carg PRESS MANU IONAL AB E a SEATIN cupants an IR v T T E D I I L D c S Labels@AutoDataLabels.com O N o D P C f

www.AutoDataLabels.com

couss manuel s renseig Voirplelus ample de

ht o a, 35 ed weig 40 kP 2 in E b Z I m S o 5 PSI The c kPa, 3 H 0 7 4 9 2 6 SI R1 TIRE a, 60 P 215/55 6 97H P k 0 42 R1 T 215/55 16 99 FRON 5R T125/8 REAR E Emission Labels SPAR

A IO RMAT INFO

DELIVERY IN 1-3 DAYS!

Vin Labels VEHICLE MFD. BY FORD MOTOR CO. IN U.S.A.

TP/PS

RC: 13 DS0: R AXLE TR SPR K 45 V DB UTC

block side air bag deployment.

See owner’s manual for more information.

AVERTISSEMENT

POUR ÉVITER DES BLESSURES GRAVES OU MORTELLES:

pas contre la porte.

•Ne vous appuyez pas un couvre-siège •N’utilizez qui peut bloquer le déploiement du coussin gonflable latéral.

Voir le manuel du conducteur pour de plus amples renseignements.

ABZ

3U51B F05

AC Labels

Tire Pressure Labels

Paint Code Labels

TIRE AND LOADING INFORMATION

SEATING CAPACITY

TOTAL 3

FRONT 3

REAR 0

The combined weight of occupants and cargo should never exceed 505 Kg or 1114 Lbs.

TIRE SIZE FRONT P265/70R17 REAR P265/70R17 SPARE P265/70R17

FOR ADDITIONAL INFORMATION ABOUT AUTO DATA LABELS: visit our website at www.AutoDataLabels.com email us at labels@AutoDataLabels.com or call us at (631) 667-2382 ©2022 Auto Data Labels an LKQ Company. Visit us at Shop.LKQcorp.com and LKQcorp.com

WARNING

SERIOUS INJURY OR DEATH: COUSSIN GONFLABLE LATÉRAL TODoAVOID lean against the door.

•Do not (SRS) • not use seat covers that

Conforms to regulations: 2016 MY U.S. EPA: T2B4 LDV FED OBD II Fuel: Gasoline California: Not for sale in states with California emissions standards.

TWC/HO2S/WR-HO2S/CAC/TC/DFI No adjustments needed.

2.3L-Group: GFMXV02.3VJW Evap: GFMXR0125NBV

THIS VEHICLE CONFORMS TO ALL APPLICABLE FEDERAL MOTOR VEHICLE SAFETY STANDARDS IN EFFECT ON THE DATE OF MANUFACTURE SHOWN ABOVE. F0085 VIN: 00000000000000000 T0183 TYPE: MPV

EXT PNT: UA WB BRK INT TR 114 4 GP

SRS SIDE AIRBAG

VEHICLE EMISSION CONTROL INFORMATION

DATE: 01/03 GVWR: 5880LB/ 2667KG REAR GAWR: 3325LB FRONT GAWR: 2735LB 1240KG 1508KG WITH WITH P235 /70R16SL TIRES P235 /70R16SL TIRES 16X7.0J RIMS 16X7.0J RIMS AT 205 kPa/30 PSI COLD AT 240 kPa/35 PSI COLD

Caution Labels

COLD TIRE PRESSURE SEE OWNERS 303kpa 44psi MANUAL FOR 303kpa 44psi ADDITIONAL 303kpa 44psi INFORMATION

To Visit Our Website

SCAN HERE

Tired of declined service?

Increase your CPROs today.

Over

90% get approved

auto.sunbit.com/learnmore

Service Now, Pay-over-time.

BROUGHT TO YOU BY THE TEAM AT RATCHET+WRENCH

Automotive Technology Summit SEPTEMBER 2425 • DALLASFORT WORTH, TX

WHAT’S WAITING FOR YOU AT ADAPT 2022?

PREVIEW WHAT INDUSTRY EXPERTS AND OEMS LIKE HONDA, GM, AND AUDI WILL BE SHARING AT THIS TWO DAY EVENT AND REGISTER TODAY.

A D A P T S U M M I T.C O M

THE ADAPT: AUTOMOTIVE TECHNOLOGY SUMMIT IS A TWODAY EVENT PROVIDING SHOP OWNERS AND OPERATORS WITH A UNIQUE, UNMATCHED OPPORTUNITY TO LEARN DIRECTLY FROM INDUSTRY LEADERS ON THE MOST PROGRESSIVE AND PRESSING TECHNOLOGY TRENDS DISRUPTING THE AUTOMOTIVE AFTERMARKET

2022 ADAPT: AUTOMOTIVE TECHNOLOGY SUMMIT SPONSORS: PLATINUM SPONSOR:

GOLD SPONSORS: ADVANCE PROFESSIONAL, SHOPMONKEY SILVER SPONSORS: AUTOMOTIVE TRAINING INSTITUTE, CAROLINER, FULLBAY, HUNTER ENGINEERING, INTREPID DIRECT, KUKUI, NAPA, OPTIMIZE SOCIAL MEDIA, PODIUM, SIRIUSXM, SHOPWARE, SOLID START, TEKMETRIC

CONTENTS

0 5 . 2 2

|

MAY

V O L U M E

2 4

|

N U M B E R

0 5

A Team Effort Whether it’s running an awardwinning body shop or raising money for those in need in their community, the Freer family has all hands on deck to ensure success.

FEATURE

PROFILE

24 A SECOND WAVE: INSIDE THE

30 COMING THROUGH FOR THEIR COMMUNITY

LATEST CONSOLIDATION SURGE

Sisters Taylor and Lily Freer have raised over $400,000 with two annual charity events and the help of family-run shop Freer Auto Body and Accessories.

Take a closer look at some of the growing acquisition businesses in the industry.

BY ZANE DOUGLAS

BY PAUL HODOWANIC

Printed in the U.S.A. COPYRIGHT ©2022 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.

May 2022

5

fenderbender.com

CONTENTS

MAY

QUICK FIX

13

10

PAST THE PAGE

Thriving through tough times

12

DRIVERS SEAT

Stop playing the blame game

13

BREAKDOWN CREF’s new fundraising initiative

16

NUMBERS

Owners bullish on upward sales trend

19

LIGHT HITS

Progressive braces for lawsuit

20

SNAP SHOP

First Class Sales and Service

Coming Soon!

Nason Finishes Basecoat and Topcoats ®

FINISHES

Improved Performance Formulated to deliver improved cycle time, easy application and enhanced flake control.

User-Friendly Simple mix ratios utilizing universal activators and reducers.

High Quality Color Available in high quality Single Stage and Basecoat solid and metallic colors, and popular factory package colors.

VALUE IN A HURRY™ AN AXALTA COATING SYSTEMS BRAND

nasonfinishes.com Copyright © 2022 Axalta Coating Systems and all affiliates. All rights reserved. (03/22)

May 2022

6

fenderbender.com

STRATEGY

COLUMNS

34

THE SOP

Start your day the right way

36

SALES+MARKETING What’s your shop’s narrative?

40

CASE STUDY

A recipe for recruitment

22

THE BIG IDEA Be like Elon?

BY K E VIN R AIN S

39

PROCESS DRIVEN

Recruiting outside the box

BY RYAN CROPPE R

47

COLLISION COURSE

Stop writing estimates

BY TIFFANY ME NE FE E

48

OUTSIDE THE LINES

Protect against poaching

BY JASON BOGG S

44

ADAPT

Who’s to blame for self-driving crashes?

34

45

FINANCE+OPERATIONS

Increasing your paint profits

Audio-optional, no storyline to follow Sports-alternative, when no game is on Hours of content, updated weekly

SCAN NOW TO TRY IT FOR FREE atmosphere.tv

May 2022

7

fenderbender.com

CONTENTS

ONLINE EXTRAS

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

ProColor Collision

CAPA

Spanesi Americas

AUTEL

LKQ Corporation

Sunbit

Auto Data Labels

PPG

SUN Collision

ADAPT

Atmoshper

Auto Job Central

TechForce Foundation

EDITORIAL

Matt Hudson Content Director Steve Bauer Editor Noah Brown Digital Multimedia Editor Hanna Bubser Digital Reporter David Bellm Contributing Writer Jason Boggs Contributing Writer Ryan Cropper Contributing Writer Zane Douglas Contributing Writer Paul Hodowanic Contributing Writer Tiffany Menefee Contributing Writer Mike Munzenrider Contributing Writer Kevin Rains Contributing Writer David Scheller Contributing Writer

EDITORIAL ADVISORY BOARD

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

READ WHAT THE PROS READ

ART AND PRODUCTION

Zach Pate Creative Services Director Jonathan Ricketts 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 Chad Hjellming Marketing Strategist (National Accounts) 651.846.9463 / chjellming@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 Kenzie Verschoor Associate Marketing Strategist (National Accounts) 651.846.9472 / kverschoor@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 Autumn Morey Customer Success Representative 651.846.9460 / amorey@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 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.

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

BACK IS SUE S

Past issue single copies are $8.

Go to fenderbender.com/backissues

LET TE RS TO THE E DITOR

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

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.

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

AUTOMOTIVE GROUP

May 2022

9

fenderbender.com

PA ST T H E PAGE

VIDEOS

|

PODCASTS

|

WEBINARS

|

NEWS

Thriving Through Tough Times In this revealing podcast, shop owner Shane Hollas shares some of the lessons he learned while operating a profitable shop that was able to retain and even add to its workforce during the COVID pandemic and ongoing Great Resignation.

Hollas provides valuable insight into unique strategies he used to keep his business running efficiently and profitably.

FENDERBENDER.COM/PODCASTS

ACQUISITION AND CONSOLIDATION TRENDS FOR 2022

Don’t Miss the News

ACQUISITIONS IN THE AU TO COLLISION INDUSTRY aren’t slowing down anytime soon, and Focus Advisors’ David Roberts provides insights into what is a hot topic for many in the business. Whether it’s one of the Big 4, or smaller companies continuing to grow their acquisitions, Roberts breaks down the industry’s consolidation trends and discusses what to expect in 2022 and beyond.

@fenderbendermag May 2022

@fenderbendermag

@fenderbendermag 10

Don’t miss an ounce of May collision industry news. Join thousands of your industry peers who stay on top of current trends by visiting fenderbender.com/ news for all you need to know, every day.

FENDERBENDER.COM/NEWS

fenderbender.com/linkedin

fenderbender.com fenderbender.com

DRIVER’S SEAT

STOP PLAYING THE BLAME GAME As driverless technology advances, standard guidelines for drivers and manufacturers are overdue

reimbursements. Technology created by humans will always be imperfect, regardless of the industry or individual product.

I know we are all eagerly watching the automotive industry evolve, and as we’ve hit a new chapter, there are important legal questions that need to be answered soon.

Perhaps there needs to be legislation in how these vehicles are marketed to consumers, or drivers should be required to receive formal education on a vehicle’s software and its limitations before they can drive it off the lot.

My hope is that manufacturers, consumer protection agencies, and insurance companies come together to create a standard set of guidelines for the United States.

The wise thing to do is to get ahead of the curve and find a middle ground now. The sooner you have solid rules to follow, the safer and more productive it is for all of us.

I WAS COMMUTING TO WORK a few weeks ago in typical spring Minnesota weather: a nasty mixture of freezing rain and snow, combining to create a slippery, slushy drive littered with cars in ditches, spinouts and, appropriately for this magazine, plenty of fender benders.

At one point I noticed myself behind a Tesla. They are becoming so common on roads today I really didn’t think twice of it, until it started fishtailing toward a concrete barrier. Luckily the driver was able to regain control of the car and continued on his way.

Had the gentleman lost control and hit the barrier, this situation would have been one of countless incidents where a driver underestimated Mother Nature and lost.

He would have been placed at fault by his insurance company, and likely given a warning from law enforcement about reckless driving in hazardous conditions.

But, what if the road conditions were perfect, and the car still veered into that barrier despite hypothetically having full autonomous technology? (Note: no current vehicle on the market has full Level 3 ADAS autonomy, although Mercedes-Benz is reported to be working on one) Who gets the blame for that one? That’s the subject of Noah Brown’s ADAPT story this month (“Who’s at Fault When an Autonomous Vehicle Crashes?”), and it’s a question with no easy answers.

As driverless technology continues to advance, there’s practically no legal precedent on whether the responsibility lies with the driver or manufacturer. The issue is being regulated on a state-by-state basis, but by and large companies are still pointing the blame away from themselves, insisting that proper control of the car ultimately belongs to the driver.

What intrigues me, however, is how insurance companies will determine fault, and how they’ll reach that conclusion, especially when it comes to collision repair

May 2022

STEVE BAUER

EDITOR

sbauer@10missions.com

11

fenderbender.com

SPONSORED CONTENT

THE BATTLE FOR TALENT

FOR MANY YEARS, THE COLLISION REPAIR INDUSTRY HAS BEEN G R A P P L I N G W I T H T H E I S S U E O F L A B O R S H O R TA G E S . I T I S U N L I K E LY T H AT A L O N G - T E R M S O L U T I O N W I L L B E F O U N D S O O N , S AY S S T E V E L E A L .

Well, here’s the situation: You own and operate a busy body shop with business increasing every day, you have invested in building the most advanced repair shop, you keep up with all the latest automotive trends, and your business is backed by innovative sales and marketing campaigns. Yet you struggle to keep up with the increasing volumes of business.

The reason is – you need the right and capable hands to keep the engine of your business running smoothly.

This is a familiar scenario at many automotive body shops – whether your business is independently operated or aligned with an established network. It’s not a recent trend and it’s not an issue that concerns only the United States. Every body shop around the world needs trained and talented people at all levels – technicians, customer service, insurance claims processors, management, and sales – who share your business vision and play a critical role in your success.

Every industry, and not just the collision repair industry, seems to be grappling with this roadblock. It is one thing to attract new people to our thriving industry, but it is another challenge to retain and encourage talented individuals. Every shop owner is keeping his or her fingers crossed that their star employees will remain on their team for many years.

In my interactions with body shop owners around the world, the shortage of skilled labor in the body shop operation has always remained a major concern.

While the industry is actively looking for solutions, the current scenario is that we now have an ageing generation of technicians who will sooner or later retire, and that not many from the younger people have the inclination to pursue the aftermarket industry as an exciting career option.

Let’s face it – despite being an essential business, collision repair is a tough industry. Our profit margins are competitive, and we strive to maintain a strong work quality, while keeping our overheads low. The shortage of a capable workforce adds to this dilemma.

What is it that we can do to help overcome the gap between the demand for a skilled workforce and increase the attraction towards the aftermarket industry?

As a network that works proactively towards supporting franchisees in their operations, we work closely with industry partners and vocational schools towards assisting shop owners in identifying potential employees who can drive their success.

Here then are some of my recommendations: Changing the industry’s perception: A common dubious stigma attached to the aftermarket industry is that it’s a male-dominated, physically demanding business. This is, however, not so – our workforce is made up of both male and female team members who continue to inspire and lead the change.

Compensations & Incentives: In their effort to attract and retain skilled workers, many shop owners have taken a step towards paying more for the right people, with the hope that their

key employees are not poached by other body shops hungry for their talent. A fair compensation structure, along with incentives or benefits package, is one way of encouraging new people to join you. Some shops have also reduced the probationary period to just three months or increased the time off for well-deserving team members. Other incentives are learn-as-you-work schemes offered by shops that allow new recruits to continue building on their expertise at the workplace.

Close collaboration with trade bodies & OEMs: At present, we work very closely with Original Equipment Manufacturers (OEMS) and skills organizations to train and certify our franchisees’ employees in specific aftermarket disciplines.

Job board: One of the benefits we offer our franchisees is an active job board where they can post their requirements for new recruits online. Using this important tool, franchisees can seek talented people within their own communities and neighborhoods by describing the role description for all job levels and matching the right talent that meet their needs.

Engage youth early: Most of the younger generation start thinking about their future careers at the high school level or at a vocational school. The curricula at these vocational schools are shaped by the latest automo-

tive trends and therefore when the students graduate, they are already prepared to hit the ground running. By spreading awareness about the industry or creating rewarding apprentice-level opportunities, you can look at pulling talented students towards the trade.

Engage skilled people continuously: Nothing excites technicians than the opportunity to learn something new. Automotive technology is changing quickly, and technicians are always keen to make sure that they are on top of their game every time through hands-on training. Giving your technicians these opportunities shows that you always have their interests at your heart. At the same time, you have a team of players who can confidently repair the latest vehicles.

Positive work environment: Many shop owners look for creative and imaginative ways to build a thriving and inviting work culture where feedback is always encouraged. Such an environment helps foster team spirit and make new recruits feel that they are an important part of the operation.

In conclusion, this is not a problem that will go away any time soon. It will take years and even decades to find a solution, and I believe that the issue has the potential to worsen if not tackled soon. Finding effective solutions requires a concerted industry approach. Let’s make it happen!

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

BREAKDOWN

CREF LAUNCHES RECRUITING FUNDRAISER

Industry leaders, businesses combine for unique initiative

I N A N E F F O RT T O C R E AT E a series of public service announcements to educate the public on the benefits of becoming a technician in the auto body industry, The Collision Repair Education Foundation (CREF), in partnership with several corporate and individual sponsors, is launching a unique fundraising initiative.

GETTY

By STEVE BAUER

May 2022

13

fenderbender.com

QUICK FIX

Operative Talent is a car rebuild fundraiser initially announced by CREF, BASF and KTL Restorations during the Collision Industry Conference meetings at the 2021 SEMA Show. Since the fundraiser’s launch, businesses and individuals in the industry have stepped up to provide parts for the rebuild, economic support and other resources. “(Operative Talent) really has allowed for the entire collision industry to get involved,” says Brandon Eckenrode, CREF’s managing director. “Our industry needs to find ways to inform the general public—including parents and school counselors—about the incredible opportunities in collision repair. We continually discuss the need for more technicians, estimators and other industry professionals, but instead of just thinking about it and talking about it, we’re going to put some actions behind it which will involve everybody in this industry.”

On a Mission

The first part of CREF’s initiative is to raise funds to build a public-facing web site to educate them about the variety of career paths in the industry, as well as which schools offer collision training. To help reach that goal, KTL Restorations will completely rebuild a 1969 Camaro, also named “Talent,” with the build starting this year and the vehicle being raffled off at SEMA 2023 to raise funds to support the endeavor. The business hopes to rotate young tech students from area schools to help rebuild the Camaro under the supervision of their trained staff.

Promoting collision careers to the next generation is vital for the industry’s future sustainability, and it’s a matter that KTL’s Crystal and Kurt Lawrance take personally.

“We have children, including a 16-yearold daughter who’s currently studying refinishing, and as parents, we care about their future,” Crystal says. “We’re passionate about the next generation, but few show enthusiasm for automotive careers because they know nothing about it. No one is showing them what’s available.”

The second part of CREF’s mission is to develop and promote a national public service campaign showcasing collision career opportunities and generating awareness about the industry. The scope of the PSA campaign will depend on how much

May 2022

money is raised by the raffle and financial donations from members of the industry.

“We’re in a sort of trade war—we’re competing for students against other technical training programs,” Eckenrode says. “I don’t want to see us lose or get the leftovers. We should be getting the best of the best, and we do that by showcasing what career paths are available to them, by showing them how attractive the opportunities in collision repair can be.”

Industry Support

Eckenrode stresses the initiative can’t succeed without the full backing of the collision repair industry, and notes there are several opportunities for companies and individuals to get involved that include monetary sponsorship and/or inkind donations for the vehicle rebuild.

There has already been a wave of support from companies like Baer Brake Systems, Dakota Digital, DEI/ Boommat (Design Engineering Inc.), Dewitt’s Radiator, Dom Tucci Design, Guniwheel, Indasa, Magnified Productions, SATA by Dan Am, Steele Rubber, Tremec, XS Power Batteries, Ringbrothers, and Spanesi Americas.

Eckenrode says he’s getting new inquiries on a regular basis from more businesses and individuals, including Mike Anderson, who want to support the cause.

“The more support we can get from our industry partners, whether corporate or individual, the farther we’ll be able to go in terms of creating a stellar PSA campaign,” Eckenrode says.

Overcoming Long-Held Stigmas

BASF’s Tina Nelles says her company is excited to be a part of the initiative because without a new influx of talent, the industry will never overcome its labor shortage.

“Attracting new talent is important to our company and the entire collision repair industry, so we’ve spent months strategizing about ways to help through offering internships, increasing scholarships, and supporting schools, but the key piece that’s always neglected is outside perception of our industry.”

She adds that it’s important to educate those outside the collision repair industry on how much advancements in automotive technology have changed what many still view as a low paying, dirty hands career.

14

“We need people talking about this industry in the right ways,” Nelles adds.

“By promoting collision repair careers through the website and the PSA campaign, we can ensure that students, as well as their parents, teachers and school counselors, understand the variety of opportunities that exist within this industry.”

Crystal Lawrence says there are also a plethora of other opportunities that exist in the industry, including marketing, human resources, sales and chemistry.

“It’s time to spotlight the many available opportunities and drive that knowledge to schools to help educate the future generation about industry careers and find quality talent,” she stresses. “If we don’t bridge that gap, there will be no one to repair vehicles or create custom cars in the future.”

Crystal’s dedication to the industry’s future inspired her to contact Nelles, who reached out to CREF with the idea for the build.

“Usually Brandon calls us with crazy ideas, so it was fun to turn the tables on him,” Nelles says “But education is important to the industry, and it’s important to us. ‘Operative Talent’ is a big project, and I hope this first build is just one of many; however, for this project to successfully bring what we need to collision repair, it’s going to require help from the entire industry.”

Eckenrode says the website and PSA campaign won’t be branded under any participating party because it’s designed to benefit the entire industry. As such, he stresses there is still a need for more support.

“We need engines from OEMs, parts from suppliers and monetary donations from sponsors, and now that raffle ticket sales have opened, we need help spreading the word to make sure we raise the funds necessary to make this project as successful as it can be. Local collision students and other rebuilders are invited to get involved with the ‘Talent’ build and any future builds.”

Industry members can get involved with the Operative Talent project by contacting Eckenrode at 312-231-0258 or email him at Brandon.Eckenrode@ed-foundation.org.

The car will be rebuilt at KTL Restorations, located in Danville, Virginia. Raffle tickets are available for purchase on CREF’s website, and will be available for purchase from now until SEMA 2023.

fenderbender.com

READ WHAT THE PROS READ

SUBSCRIBE OR RENEW YOUR SUBSCRIPTION TODAY FENDERBENDER.COM/SUBSCRIBE

QUICK FIX

NUMBERS

BODY SHOP OWNERS SEE POSITIVE SALES TRENDS

How have your total annual sales trended during the last five years?

Grown

A R E B O D Y S H O P O W N E R S seeing

an upward trend in sales? If so, do they expect that trend to continue? The 2022 FenderBender Industry Survey answered some of those questions, with an overwhelming number of respondents (67 percent) saying they’ve seen sales growth in the past five years, and an even larger number (72 percent) expect that trend to continue into the future. Shop owners are clearly more bullish about future sales trends than they were in 2021’s survey, where only 60 percent of respondents expected an increase in sales in the next five years.

May 2022

67%

How do you expect your sales to trend in the next five years?

Grow

Remained Flat

13%

Declined

8%

Decline

Inconsistent

11%

Uncertain

16

Stay the Same

72.5% 11% 2.5% 14% fenderbender.com

WHY PRO COLLISION MADE THE SWITCH

BUSINESS PROFILE

PRO COLLISION OF WEST MICHIGAN Grand Rapids, Michigan Nicole & Jeff Smith ~ Owners

1 8 2 2 2 2O

LOCATION EMPLOYEES PAINTERS PAINT BOOTHS PREP DECKS VEHICLES PER WEEK

Nicole & Jeff Smith

“One major advantage of the Envirobase system is the color match.”

“The blend process is simple and so much easier.”

“Given the support and training we receive, the switch to PPG was one of the best decisions we’ve made.”

PERFORMANCE YOU CAN COUNT ON The PPG Logo, Envirobase and the Multiple Cubes Geometric Design are registered trademarks of PPG Industries Ohio, Inc. ©2022 PPG Industries, Inc. All rights reserved. www.envirobase.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

QUICK FIX

LIGHT HITS

CLASSIC COLLISION ACQUIRES MINNESOTA SHOP

Classic Collision LLC has acquired Crystal Lake Automotive in Lakeville, Minnesota, according to a company press release.

Crystal Lake Automotive was established in 1986. In the 1990s, the company experienced several years of growth and expanded automotive service capabilities. In 2000, CLA consolidated multiple locations into a single facility in Lakeville, designed to create a pleasant environment for customers.

“We have changed our business for the better in the past and I am sure this move is another improvement. I am excited for Classic Collision to continue the work we started in this community,” says Karl Drotning, former co-owner and founder of Crystal Lake Automotive.

“As we establish our presence in this new market, we also welcome the entire Crystal Lake’s teams to the Classic Collision Family.

This is a time of growth for Classic and we are confident these new centers will have the experience, culture, management discipline, and necessary venture to continue being successful as the industry and operating climate changes. We have a lot more in store for the remainder of this year as we continue to progress across the country,” states Toan Nguyen, CEO of Classic Collision.

Classic Collision now operates a total of 176 repair centers in14 states across the U.S.

PROGRESSIVE FACING POTENTIAL CLASS-ACTION LAWSUIT OVER ACV CALCULATIONS

Progressive Insurance faces a potential class-action lawsuit in Pennsylvania for using unexplained adjustments to lower its actual cash value (ACV) calculations in total loss cases.

According to a story by Insurance World, the lawsuit claims Progressive “systematically adjusts the scale” when calculating ACVs by applying “projected sales adjustments” to vehicle prices from comparable occasions.

The plaintiffs claim that the adjustments are “misleading and unexplained” and are “not based on facts, as they are contrary to the pricing and inventory management practices of the used car market”.

May 2022

The lawsuit was filed March 21, three days after a similar lawsuit was filed against State Farm in an Illinois court. The Progressive lawsuit seeks payments estimated at more than $5 million for Pennsylvania customers, while State Farm plaintiffs seek unspecified benefits for a proposed national class.

According to the plaintiff in the lawsuit, Progressive’s practice violates Pennsylvania

consumer protection laws, its own political language and professional standards.

“Appraisers use advertised prices and only make adjustments based on observed and verifiable data; valuation standards do not permit arbitrary adjustments to the advertised price based on undocumented and unverifiable projections,” the suit states.

COMPLETE COLLISION & MECHANICAL DATA YOU CAN TRUST

Your trusted source for comprehensive, accurate OEM data to diagnose the issue and complete the repair with maximum efficiency h Body and Frame h Paint and Finish

h ADAS Information

h Materials

h Real-World Insights

h Wiring Diagrams

SUN Collision Repair Information LEARN MORE AND GET A FREE DEMO Call 877-840-1973 or visit SUNcollision.com SUN is a trademark, registered in the United States and other countries of Snap-on Incorporated.

19

fenderbender.com

QUICK FIX

1 SNAP SHOP

FIRST CLASS SALES AND SERVICE

By STEVE BAUER Photos by JAMES WILLIAMS

L O C AT I O N :

SMYRNA, TENN.

OWNER:

RON JANBAKHSH

SIZE:

21,138 SQUARE FEET

S TA F F :

14

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

29

NUMBER OF DRPS:

1

2

ANNUAL REVENUE:

$1.1 MILLION

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

SUBMISSIONS@10MISSIONS.COM.

May 2022

20

fenderbender.com

1. A BUSINESS BUILT ON FAMILY

For First Class Sales and Service owner and general manager Ron Janbakhsh, collision repair has been a part of his life since he was a child.

His father, who’s been involved in the automotive industry for around 30 years, owned both dealerships and a collision repair shop, so he learned several aspects of automotive repair from a young age. “ My father had both the dealerships and the body shop, so they’d do some auto body work at the dealership, but the rest was completed at the shop,” he said.

Janbakhsh’s father sold his businesses, and in 2017 purchased approximately four acres of land and built First Class Sales and Service from the ground up. The state-of-the-art collision and automotive repair business opened in 2018 in Smyrna, an area Janbakhsh’s father was familiar with, having owned a dealership in the region in the past.

2. A FLARE FOR HIGH-END DESIGN

3

May 2022

Janbakhsh had a large say in the overall design of the shop, and worked without the assistance of outside consultants to turn his vision into reality. One of his top priorities for the front of the business was for visitors to be greeted with a large, customer-friendly waiting area.

It was his wife, who used to own a dance studio, who had a large influence when it comes to the the upscale decor seen around the front of the business.

“She chose the wood walls that line the office, as well as the granite floors. Her belief is that the quality of the business should resonate from front to back, to let customers know their vehicles would receive the highest quality repairs possible,” he says.

The Janbakhshes believe in keeping up with trends and uniformity, so much so that the outside of Ron’s house is the same color as the exterior of the shop.

The shop is truly an extension of the family’s life, as the pool table

21

and saltwater fish tank that greet customers were taken directly from Janbakhsh’s home.

Janbakhsh says he is fond of the fish, and they are also a favorite amongst his customers, with many asking what type of fish are in the tank, how to care for them, etc.

“It’s interesting to see what people notice (when they first walk in), and the fish are always a big hit,” he notes. “A lot of customers will come in and tell us that a lot of body shops they’ve been in, they didn’t even want to sit in the waiting area because it was so dirty or plain. So it’s a point of pride for us to have our customers respond so positively.”

3. WORLD-CLASS SHOP FLOOR

Because the business handles both collision and service repair, the back area is divided into two areas, one dedicated to each department.

Janbakhsh says everything on the shop floor is state-ofthe-art, and he’s always looking to add more innovation to help ensure his technicians and other employees are working with the best equipment possible “We’re focused on ensuring our customers receive the highest level of service possible, and a big part of that is ensuring employees have access to and are trained to use some of the most modern equipment available,” he says.

The shop has its own paint booth, and all services are done in-house, with nothing sent out to a third party.

“We can pretty much handle any auto body issue that comes through the shop doors,” he says.

Janbakhsh currently handles the shop’s day-to-day operations, but he hopes he can pass the business on to the next generation in his family in the near future.

“I’d like them to have something to be proud of and involved in, just like I was growing up,” he says.

“I know we have a bright future ahead of us.”

fenderbender.com

COLUMNS

THE BIG IDEA

Be Like Elon?

Workaholism is overrated be like Elon Musk. He is currently the richest person on the planet. He founded two extremely well-known companies worth billions: Tesla and SpaceX. He is sometimes compared to the fictional comic book character Iron Man. He has huge vision and bold ideas and the ability to execute them. He has a very high IQ. Sounds pretty good when we put it like that, right?

Elon has a prodigious output. He gets big things done. He has incredible ideas and vision and he is able to execute, bringing those ideas to reality and eventually to market. I’m sure a lot of people have had ideas about building electric cars for a long time. Yet, Elon did it. And not just as an inventor but as an entrepreneur. He not only built the most successful electric car to date, but he built it as the most recognized brand in that space. And yes, there are big competitors coming after him. And with the amount of money at stake, they will likely invent something superior, but he will always be the one who was first to market. He made his mark and history has been made. And it looks like he will continue to make history with several other projects, most notably SpaceX. However, the pace and amount of time he spends working at the expense of his health and family life are not things I find compelling.

There are many who believe he has been on the verge of a mental breakdown on many occasions.

Tim Denning, a popular writer for Medium calls Elon a “slave” and and his work ethic “psychopathic.” He summarizes a New York Times interview, where Elon welled up with emotions as he shared details about his 120-hour work week, along with the fact that he worked 24 hours straight on a recent birthday, hasn’t had a week off since 2001, and rarely goes outside, staying in his factory three to four days at a time. That does not sound healthy or sustainable, at least not for me or anyone I know.

For those of us who want to leave a lasting legacy that is more than just financial, rest is possibly the most underused, underappreciated tool in our toolbelt.

Since exiting the auto body industry I’ve been

May 2022

working on what some call a passion project. My son and I are building a retreat center on 50 acres our family has owned for almost 20 years in Daniel Boone National Forest. Working with him over the past year has been such a gift. We are doing something we both love in a place that has deep roots in our family tree. Recently I was there hiking and surveying our progress with a friend of mine who is nearing retirement. He asked me a question that neither of us had considered, even though we both have been serious students of the life of faith our whole adult lives.

He asked, “Why do you think people of faith see the start of the day happening in the evening?”

From the reading I had done I knew this to be true but it never dawned on me to ask this. Most western cultures see the start of the day as the morning. Our days begin at sunrise and off to work we go. Then it dawned on me. Maybe these other cultures know something we don’t. Maybe time is best marked by starting in rest and not necessarily with work. Maybe rest comes first not as a reward for working hard, but as a necessary starting point.

Jewish people have known this for centuries: they call it the Sabbath. Their scripture starts with God creating the world culminating in the creation of humans. And what happened the first full day after that culminating act of creation? God rested. And Humankind rested with God and each other.We are designed with a builtin need for rest and capacity for relationships.

Those come first. And out of that place of rest and relationship comes creative work.

A wise man once asked, “What does it profit you if you gain the whole world but lose your own soul?” And the obvious answer to that is nothing. If we sacrifice our health and our most important relationships on our way to the “top,” we will have nothing to show in the end. Do we really think our spouses, kids and friends will be grateful for the extra money we leave behind or impressed by all our accomplishments if along the way we sacrificed time with them or our own health? Rest and relationships first and foremost. Out of that will grow your most lasting and meaningful contributions.

22

KEVIN RAINS

After 18 years in the industry, Kevin Rains sold his network of shops. He now coaches body shop owners and leaders and is the author of the upcoming book Launch to Legacy: The Small Business Roadmap to Success and Significance.

You can reach Kevin at kevinrains@gmail.com

EMAIL:

kevinrains@gmail.com

ARCHIVE:

fenderbender.com/rains

fenderbender.com

JILL MATTHEWS

I know there are a lot of people who want to

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

TOPICAL

A Second Se dnoc Wave Wa ev Inside the latest consolidation surge

By PAUL HODOWANIC

I F Y O U ’ V E R E C E N T LY V I S I T E D FenderBender’s website, it’s almost guaranteed that you’ve seen an iteration of this headline about another big acquisition.

Fill that blank with whomever you like—Caliber, Gerber, Service King, ABRA, Joe Hudson, Crash Champions, Classic Collision. It’s happening in every region of the country, and in almost every state.

Each week, press releases roll in from an assortment of consolidators announcing they’ve “further strengthened” their position in markets across the country with new acquisitions and shop openings.

And if it feels like it’s happening more often than you remember, you’re right.

“I don’t recall a time when there were more potential buyers and more potential sellers,” says David Roberts, Managing Director of Focus Advisors, a collision repair mergers and acquisitions advising company.

That has led many to refer to this influx of consolidation as “the second wave,” which has mirrored the immense consolidation growth that occurred during the early 2010s when Caliber, Gerber, ABRA and Service King rose to be known as the “Big 4.”

Now with the introduction of Crash Champions, Classic Collision and others, consolidation has reached another distinct level.

“It went from slowly cruisin down the street to a race. It’s almost like we’re in the Daytona 500,” says Laura Gay, a consolidation coach who helps indepdent shops sell their business and has worked with these consolidators first hand.

So what’s different about this wave? And what has caused it? Who are the new players? Will the established “Big 4” continue to dominate? And is there a breaking point? FenderBender sought the expertise of industry experts and the consolidators themselves to find out.

(Note: FenderBender requested to speak to executives from Caliber, Gerber, Service King, Crash Champions and Classic Collision. Crash Champions and Service King were the only two organizations that agreed to go on record to discuss the current state of consolidation and give insight into their company’s strategy.)

May 2022

24

fenderbender.com

A Look at the Numbers

With acquisition news flowing in constantly, it can become difficult to understand the bigger picture, and where all the consolidators stack up against each other. So, for reference, here are the location counts for the top consolidators, as of February 14, 2022.

Caliber Collision Total Shops 1,400

Market Size/Revenue

Market Share/Revenue

Market Share/Locations

Market Share/Revenue

Market Share/Locations

Market Share/Revenue

Market Share/Locations

Market Share/Revenue

Market Share/Locations

Market Size/Revenue

Market Share/Revenue

Market Share/Locations

Market Size/Revenue

Market Share/Revenue

Market Share/Locations

5,600,000,000

Gerber/Boyd Total Shops 684

Market Size/Revenue 2,800,000,000

Service King Total Shops 336

Market Size/Revenue 1,200,000,000

Crash Champions Total Shops 175

Market Size/Revenue 630,000,000

Classic Collision Total Shops 175

Total

Total Shops 2,769

620,000,000

10,850,000,000

16.2%

8.1%

3.5%

1.8%

1.8%

31.3%

Caliber continues to have a massive lead on all the other consolidators. Focus Advisors estimates Caliber added 201 shops in 2021 alone and nearly 25 percent were either brown or greenfield locations. Roberts expects Caliber to continue to open more and more brown and greenfield locations as it gives a much higher return on investment rather than acquiring. But that will continue as well, Roberts says.

Currently Caliber is in 40 states and 80 of the top 100 metro areas.

Gerber added 97 shops in the United States in 2021 and has created great distances between itself and Service King. Gerber’s biggest splash came with the acquisition of John Harris Body Shop, which had a total of 51 shops.

Service King has been the only major consolidator that has seen its footprint shrink. It entered 2022 with seven less locations than it started with in 2021. However, Service King CEO David Cush said the company’s plan is to start “ramping up growth” in the near future.

Then there’s the new guys: Crash Champions and Classic Colli-

May 2022

4.5%

2.2%

1.1%

0.6%

0.6%

8.8%

sion. Sitting neck and neck with their growth, both grew by more than 300 percent in 2021, adding more than 100 shops. Each has made splashes acquiring several MSOs along with a steady stream of single-shops to establish themselves as major national players.

All in all, these top five consolidators account for roughly 31.3 percent of the industry’s market share in revenue, according to Focus Advisors. The consolidators hold an 8.8 percent market share of all locations.

So while the top consolidators make up only a small percentage of the physical locations, they are taking up more and more of the revenue. And it’s not just them.

Another top mergers and acquisitions firm, the Romans Group, 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.

25

fenderbender.com

TOPICAL

Consolidators

Caliber Collision Center Classic Collision

Crash Champions

Gerber/Boyd Group

Joe Hudson’s Collision Center Service King Collision

Where they operate

load is “largely” DRP work and they have some form of partnership with all major insurance companies, says Rachel Rachel Hutfless, Crash’s Chief Client Officer.

Insurers are also benefiting from the growing number of national consolidators because it continues to create competition and lower prices.

The increasing complexity of vehicles is also a contributing factor, not because shops don’t want to learn, but because that learning comes with heavy costs. Investing in new equipment and technology is becoming vital to repairing new cars, says Matt Ebert, Crash Champions’ founder and CEO. And it can be easy to rack up several hundreds of thousands of dollars in new equipment, tools and facility modifications. Crash is committed to investing in those technologies, and it has the capital to do so. But for the average mom and pop, the money it takes to invest in ADAS, new scan tools, OEM certifications and other items is just not feasible.

Then add in many of the factors that COVID-19 caused, like an exacerbated labor shortage, particularly technicians, parts shortage, and tightened profit margins and it became harder to run a business. All those have increased the number of prospective sellers, Roberts says.

Ebert also believes the industry is reaching a point where many owners are getting older and naturally looking to sell their businesses. COVID-19 aided in that as well.

“When the big [consolidators] were starting it, they said no. Now [the shop owners] are older… they don’t see the same runway they had before,” he says.

And while that has meant an all-time high supply of shops, there

Each consolidator has its “bread and butter” markets that it holds a dominant position in. Because of Caliber’s size it has several, like California and along the East coast in the Virginia/Maryland area. They are also the only major consolidator in markets like the Twin Cities.

Gerber has a strong presence in the Great Lakes region, specifically Michigan and Wisconsin, that stretches into New York. It also has strong pockets in the upper Northwest and down in the Southeast. Service King’s presence remains heavily in the South with smaller pockets in the Midwest and Northeast.

Classic and Crash have taken different approaches to their growth. Classic has grown along much of the coast line, from Wasington and Oregon, to the Gulf of Mexico in Texas and on the eastern coast of Florida.

Classic is also heavily invested in Florida but has also had a major focus in the Midwest where the company was founded, and it is also establishing a presence in the crowded Northeast.

What Caused the Second Wave?

Much of what caused the first wave has continued to be a factor in the second wave. Top among them is insurance relationships. The insurers prefer to work with large corporations. It’s easier to work with one individual who is in charge of insurer relationships for 100 shops than it is to talk to 100 different shops about their individual situation, Gay says, and thus it drives volume. And most of the consolidators, like Crash Champions, are DRP friendly. Crash’s work-

May 2022

26

fenderbender.com

has also been an all-time high in demand. That means independent shops are getting really good deals on their businesses, especially smaller MSOs, Gay says. And that has caused other shops who were on the fence to jump at a good offer.

“If you want to sell, if it’s something that you’ve stuck your toe in the water on, you’d be a fool to not completely wrap your arms around how that could look for you,” Gay says.

And because there are new players trying to rapidly grow in size, like Classic and Crash, those companies have been willing to spend even more to secure high-quality shops and establish a footprint in a new market, Roberts says. Making it a very appealing proposition for independent shops.

Will it Slow Down Anytime Soon?

The short answer is no. At the 2021 MSO Symposium, Vincent Romans, managing partner at The Romans Group said consolidation is expected to increase at an “aggressive rate.”

Roberts agrees.

With Crash Champions and Classic Collision both backed by private equity, he sees both continuing to expand rapidly. He also believes there are some slightly smaller MSOs that will become more mainstream, such as Collision Right, Kaizen Collision and Quality Collision, all of which have less of a footprint than Classic or Crash but have been growing at a similarly exponential rate. Caliber isn’t slowing down. And Gerber is in the midst of a five-year growth plan it started in 2021 to double the size of the business.

Another reason Roberts expects consolidation to keep its current pace is the experience that private equity now has in the industry.

What has caused consolidators to falter in the past is private equity partners to push for growth too quickly. And both the private equity companies, and the executives working with the private equity firms have more experience in the industry.

“People that are growing rapidly make mistakes,” Roberts says.

“And they don’t always know those mistakes till after they made them.”

That can be seen in both Crash and Classic. Crash has brought over several former executives from Service King and Classic has several former ABRA employees. Their experience has helped the companies avoid mistakes that their previous companies made when they were first growing.

And from Roberts’ vantage point, all the current private equity backers are “sophisticated partners.”

“There’s nothing I see in any of these companies that appear to be mistakes,” Roberts says.

Ebert, Crash Champions’ CEO, admits the private equity relationship is a delicate balance. Investors have shorter horizons, they want to see quick results which don’t always coincide with long term strategies.

“Their timeline and the business’ timeline aren’t necessarily in unison,” Ebert says.

That’s the balance you sign up for, and it’s one Ebert needed to scale the business because he didn’t come from money. He has owned Crash Champions since 1999 and operated it as a neighborhood shop for 15 years before he decided to expand and eventually become a national MSO.

Crash and Classic Well received

In general, the consolidators are not the most popular group in the collision repair industry, especially among independent repair shop owners. However, there appears to be more openness to the newer consolidators like Crash Champions and Classic Collision.

Ebert believes it’s due to fatigue with the older consolidators. Shops have spent many years considering those shops as the enemy, so Crash is benefiting from being new.

What does it all mean for the independent repairer?

Seeing acquisition after acquisition can be daunting for an inde-

May 2022

27

fenderbender.com

TOPICAL

“Yuo evah ot etg regib d n a n s o ct a l y eb islacetr ut o b a w t a h u o y c na ” . o d

way to become attractive for the consolidators, Roberts says. The consolidators like the built-in network a multi-store operation can provide, especially when they are entering a market that is new to them. It also likely means the current owner isn’t overly involved in the day to day. That’s a key factor, Ebert says, because it’s an indicator the business can succeed without them.

“The hardest thing is when the owner was doing everything and without him nothing happens because he’s going to leave,” Ebert says.

They are also harder to come by. Many of the country’s MSOs were bought up during the first round of consolidation, and as this second wave has started, many of the MSOs that hung on have been acquired as well. The industry hasn’t done a good job of replenishing those MSOs, Gay says, so the shops that can offer that are very appealing.

David Roberts

Managing Director of Focus Advisors

What’s Happening with Service King?

The one outlier in the current landscape is Service King. As all the other consolidators continue to grow at a rapid pace, Service King has slowed and even begun to lose shops.

The company has been in the news in recent months as reports have surfaced about the company being “strapped for cash.”

In November 2021, Service King reported a loss of $6 million in adjusted earnings during the third quarter, more than the $5.4 million loss it reported in the same period in 2020 and far from the $27 million gain the company reported in 2019. The company also drew $72 million on its revolving credit and maxed out its borrowing availability. Since then, they have entered into discussions to restructure their debt.

That had led many to wonder, are they going to last?

“I think something will happen there at some point,” Roberts says, referring to a potential sale, adding, “there are some organizations that they could fit inside of.”

Gay expects there is probably a move to be made between some of the top consolidators, with one of the top five consolidators acquiring the other. And she fully expects Service King to be a seller.

pendent repair owner, but it’s important to understand the context.

There are more than 31,000 collision repair facilities and the top five consolidators operate less than 10 percent of them. Now that doesn’t tell the whole picture, because they occupy much more of the market revenue, roughly 31 percent and growing. But there is still a large piece of the pie for independent repairers.

Gay knows the angst that comes with seeing consolidation. She was “petrified” that the consolidators were going to put her out of business. She only decided to sell her shops to Caliber in 2015 to divert full attention to her husband at the time and son, who were dealing with health issues. It wasn’t because she couldn’t compete.

Now a consultant in the industry, she hopes other shops don’t see an inevitable demise to the consolidators.

“When I sold it was absolutely the right time for me. But, I don’t want people to feel like they have to sell. That’s what breaks my heart,” she says.

That said, shops that want to stay independent will need to continue to reinvent themselves, she says. Trying to call plays from the same playbook that shops have been using for the last 20 years won’t. The industry is changing and shops’ habits and processes need to be changed and optimized.

Roberts agrees. Shops don’t need to sell out, but they need to understand the realities of the market. Under-performing shops are going to get swallowed up. And denying that consolidation is happening, won’t work. If a shop isn’t committed to reimaging itself and being open to change, it’s probably time to move on.

“Shops have been waiting for these consolidators to fall on their face and it hasn’t happened,” Roberts says. “What does it mean for the single shop operator? It means you have to get bigger and constantly be realistic about what you can do.”

For shops that are open to selling, getting bigger is still the best

May 2022

Even Service King’s CEO wouldn’t rule it out.

“We don’t really view ourselves as being for sale. We view ourselves as being in the growth mode going forward,” Service King CEO David Cush says, “But at the same we’re responsible stewards of our owner’s capital. If someone wants to write a big enough check, everyone's for sale… there’s always a price in the business world.”

This situation has played out in the past, one consolidator acquiring the other, with the Caliber and ABRA acquisition in 2019.

Could Service King be one part of another blockbuster transaction?

Only time will tell. The company’s language certainly is much more open than ABRA’s was. In 2016, ABRA’s then Vice President of Business Development Tim Adelmann told FenderBender he wouldn’t be surprised if one of the Big 4 acquired another but said “ABRA will

28

fenderbender.com

AS E ASY AS...

1 2 3

POST A JOB RECEIVE QUALIFIED APPLICANTS GROW YOUR TEAM

USE CODE: AJC123 TO TAKE $100 OFF YOUR FIRST LISTING! autojobcentral.com

Hearts of gold Lily (left) and Taylor Freer, pictured with their father Tim Freer, have raised nearly $500,000 for community service programs near their home in Godfrey, Illinois. The sisters started their fundraising efforts with a lemonade stand.

COMING THROUGH FOR THEIR COMMUNITY

Sisters Taylor and Lily Freer have raised over $400,000 for their community with charity events

By ZANE DOUGLAS Photos by JASON WINKELER

May 2022

30

fenderbender.com

Solid support system The sisters’ grandmother, Margaret Freer (center), has been instrumental in helping the young women grow their fundrasing efforts, especially their annual Christmas in July event. Tim Freer and his father, Mike manage the shop’s day-to-day business.

The proceeds from the event goes to a United Way-sponsored charity called Community Christmas, which helps raise money for families around Christmas time.

That money is then used to help families with shopping for children’s Christmas presents and anything else needed.

Taylor and Lily also have been chosen to co-chair the Tree of Lights campaign, a Salvation Army-led campaign to help people across America. The campaign starts with a tree lighting ceremony and then big red Salvation Army kettles are put in front of stores across America for donations.

While the two are heavily busy in charitable work each year, Taylor and Lily also help around Freer Auto Body and Accessories—although Lily has some limitations because she can’t drive yet. Taylor will run cars in the shop for the family.

The Shop

LED BY TWO HIGH SCHOOL

S T U D E N T S , Freer Auto Body and

Accessories is helping to give back to the community that has helped them to be so successful for the last 30 years.

Sisters Taylor and Lily Freer (who are 18 years old and 15 years old, respectively), daughters of Tim Freer who owns the shop in Godfrey, Illinois, have hosted two events every year to raise money for people in need. “Christmas in July” and “Cookies and Cocoa” have successfully raised over $400,000 since they started in 2009.

“I came to Freer Auto Body, our shop, with my piggy bank when I was about five years old and we wanted to give back to my community,” Taylor says. “I was like, ‘Can I please give all my money back to some charity?’ I didn’t know what charity yet, but I was like, ‘I want to donate this money.’

May 2022

“This kind of sparked the idea in my grandma to help me start Christmas in July.”

With help from the family and the community, Taylor and Lily have run the two events every year with the money raised growing from $2,500 in 2009 to almost $52,000 the past year.

The Beginning

The event started as a lemonade stand that also sold sloppy joes with a raffle involved.

The prizes for those raffles have grown since the events started with bigger prizes becoming a normal scenario.

“This last year, it was a big raffle,” Margaret Freer, Taylor and Lily’s grandmother says. “I mean, we had friends donating condos and trips and cash. There were about six or seven different prizes that tickets were sold for $10 each.”

31

Freer Auto Body and Accessories started in 1991 with David Freer, who is Taylor and Lily’s uncle. David’s brother Tim, took over as president when David died in a motorcycle accident in 2008. Today, Margaret is the treasurer, her husband Mike Freer is the vice president and Tim is still the president. The shop is I-CAR gold certified. It’s also Automotive Service Excellence certified.

“From day one we’ve been about the community,” Margaret says. “We feel as though it is our civic duty to give back and support the community that has made us what we are today.”

Freer Auto Body and Accessories has also won awards for its service, including a distinction of the Best Auto Body shop in Madison County, Illinois, since 2001 by the Alton Telegraph.

According to the Freer Auto Body and Accessories website, it has also been a twotime winner of the Captain of the River

fenderbender.com

PROFILE

Top-notch auto body repair Freer Auto Body and Accessories, which was founded in 1991 and is run by Tim Freer with the help of his parents, is an I-Car Gold Certified shop that has been awarded for its superior service and customer satisfaction.

Bend Award for community service along with being a four-time winner of the Small Business of the Month Award.

With all these auto shop awards has come a flurry of awards and distinctions for Taylor and Lily as well. Part of the reason it’s gone so smoothly however, is that while the event is a lot of work, the family didn’t have too much trouble advertising it to the community.

“We advertise on the radio and TV,” Margaret says. “People know how much good it does. Everyone wants to make sure that kids have a nice Christmas.”

The awards for community service are earned by Taylor and Lily. However, giving

May 2022

32

fenderbender.com

back to the community has always been what Freer Auto Body and Accessories has been about even if Taylor and Lily are at the forefront of it all.

While the idea for Christmas in July and Cookies and Cocoa started with Taylor and Margaret and is continued with Taylor and Lily running things, the community and their family also help out.

“All we do is host it, organize it, set it up,” Lily says. “The community is what really gathers together. They win prizes and it’s a lot of fun.”

All of the charitable works from the two sisters has culminated in the town naming a day after them. The day is in the summer around the time picked every year for Taylor and Lily to host the Christmas in July event.

Taylor and Lily think of it as an honor, but they say it couldn’t be done without the help of everyone at the events—their family and the community.

“From a young age, I’ve always been taught to give back to my community,” Lily

says. “I’ve always strived to do that and I really love to do that.”

The Future

The message between the Freer family members started with that day where Taylor and Margaret planned to give back to their community. Building up the people around them and helping out where they can has become a core ingredient to the family’s success.

Taylor and Lily have taken it to the next level, and before Taylor heads to college, there is more that the two of them still have planned for the community and charities across the country. The two sisters are still working with the Salvation Army and their two events per year seems to have no end in sight.

From a personal perspective, Taylor and Lily get high praise as students and athletes in high school.

“They’re wonderful kids and straight-A students,” Margaret says. “They’re both spoiled rotten but you would never know it. They’re kind and giving and caring.”

Beyond a ton of charity work comes

ambitious high school students who are looking toward the future to figure out their possible career paths.

As for what Taylor and Lily’s plans for the future are, the two are prepared to move forward with big resumes. Taylor is heading off to college in 2022 and is focusing on the medical field.

“I’m a senior, so I’ll be deciding where I want to go to college soon,” Taylor says.

“I hope to take the pre-med route to hopefully become some sort of physician and get my medical degree, but hopefully I’m thinking dermatology.”

Lily is much more undecided as a freshman in high school. She is keeping her options open, but knows a couple of important things for the future.

“I’m not really sure yet because I’m a freshman, but I’m thinking either a veterinarian because I love animals or something with engineering or maybe even both and create prosthetics for animals,” Lily says.

“And I’m hoping to go play [Division I] soccer at a college.”

JOIN NOW!

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

Careers & Scholarships May 2022

Competitions & Games

JOINTECHFORCE.ORG

Education & Training 33

fenderbender.com

LEARN

|

GROW

|

WORK SMARTER

S T R A T E G Y

THE SOP

KEYS TO STARTING EACH WORK DAY RIGHT

A morning routine can set you up for success May 2022

34

S H A N E H O L L A S R E C A L L S when a peer told him: “Every car that leaves your shop is a business card.”

Hollas, owner and operator of MAACO Collision Repair and Auto Painting in Rockwall, Texas, says that advice stuck with him. He uses that idea as the motivation to do excellent work on every

fenderbender.com

advisory council, and in 2020 it named him the rookie of the year.

Hollas accomplished these feats thanks in no small part to his years of executive experience. As the former vice president of sales for a software company, he entered the collision repair world with two important business skills: selling and how to make complex processes run smoothly. Hollas knows the technicians on his floor should work together seamlessly if they’re going to maximize his shop’s profits.

That’s why he and his crew begin every morning with the same routine.

As told to DAVID SCHE LLE R

1: Remind yourself of what you value.

I know this sounds cheesy, but I’m a strong believer in positive affirmation. I start off every day saying a certain thing to myself which lifts my spirits and gets me in the right mindset. The first part of my daily affirmation focuses on my family. It then goes on to my business goals, which include how many cars our team needs to produce each week. It ends with a reminder of the learner and the leader I strive to be.

On most days, I only say my affirmation once or twice during my drive to work. But when things are going rough, I may have to say it about 50 more times before I truly start believing it. By the time I get into the shop, I’m the leader I need to be and we start the day right.

GETTY

2: Keep a routine.

job. To achieve that standard at the shop, one must start each day off right. It’s easier than you might think, Hollas says.

Within just six months of its grand opening, Hollas’ 16-employee shop earned both I-CAR Gold Class certification and MAACO Diamond certification. MAACO has already appointed him to its corporate

May 2022

Routine is the key to running any business, because routine creates structure and predictability. Structure means everyone knows what to do without having to ask for directions. Predictability lets everyone mentally prepare for the task(s) ahead.

When your team follows a routine, each of its members understands their personal contribution to the shop. They also build trust as they learn what to expect from everyone else around them.

That’s an important routine solely from a managerial perspective, but it also prepares us for our team meeting at 8 a.m.

4: Hold morning meetings.

Our morning meetings are the most important part of our routine. Just gathering everyone together in one place underscores that we’re all on the same team. And gathering is productive, because some problems can only be solved when people put their heads together.

The meetings also prevent fingerpointing. No one can say, “I didn’t hear about that” if everyone in the shop heard it at the same time. But we don’t rely on the power of the spoken word alone. Our meetings revolve around a visual representation of our workflow.

5: Use a production board.

We don’t just go over our shop’s goal for the day during our morning meeting. We work out how we’re going to accomplish our goal. For that, the best available tool is a production board.

The big whiteboard in our shop is broken down into all the different stages of repair: sanding, masking, paint, buffing, reassembly and so on. Each vehicle in our shop is represented by its own magnetic note card with the details of its repair order written on it.

Once these cards are laid out on the production board, each team member’s expectations for the work day become crystal clear.

Computerizing your shop’s workflow is essential for your estimators and production managers, but remember that your techs aren’t sitting on laptops all day.

That’s why there’s no substitution for a huge production board: it’s easy to understand, it’s easy to update, and it’s impossible to miss.

6: Keep morning meetings short.

3: Walk the cars.

Our longest morning meetings take no more than 15 minutes. We try to shoot closer to 10.

That keeps our techs from tuning out, which I wouldn’t blame them for, because we all know what meetings are like. Ten minutes should be all the time it takes to go over everyone’s tasks for the day and get their input, and you don’t want to pay your whole team to stand around any longer than you have to.

35

fenderbender.com

The very first thing we do when we get to work at 7 a.m. is walk the cars. We are making sure they’re in the right stages of production, their repairs are getting done correctly and we’re doing the work our clients want.

STRATEGY

SA LES+M A R K ETING

BUILDING A NARRATIVE FOR YOUR BODY SHOP

Every shop has a story, and sharing yours might be a boon to business F O R A S L O N G A S C A R S have been on the road, drivers have carried at least some responsibility for everything that happens to them and, maybe more importantly, because of them.

Everybody loves a good story, but what good is a story unless it’s shared? Businesses can have stories too, and when your business’s story is interesting or sets you apart from others, it should be shared with current and potential customers.

Building a narrative to promote your shop can be a compelling marketing tool, provided you identify the story you want to tell and convey it effectively.

May 2022

Defining a Narrative

A narrative is a story about your business.

Its primary purpose is to connect with your customers, as well as to differentiate your business from the competition.

“The average consumer views all body shops the same, even though it’s not the case. Ten years ago, it was more the case than now, but shops are very different now than they were a decade ago,” says Tom Zoebelein, owner of Maryland-based Stratosphere Studio, a content marketing agency for the transportation industry.

Customers make decisions in a variety of ways, and one of them is emotion-

36

al—do they connect with your shop, with your story?

“Some customers will choose the path of least resistance and go with the DRP shop, but other customers care about their vehicles. Maybe they’re familiar with a shop, maybe their family member had a car fixed there. If you can get them into the door, the shop owners have the ability to get a customer to buy into the whole narrative of why they do things differently,” Zoebelein says.

For example, a shop may deliver a level of service that is almost guaranteed to match a manufacturer’s, so they are go-

fenderbender.com

GETTY

By H I L A R Y D A N I N H I R S C H

into the kind of shop it is: DRP, OEM certified, etc.; we can craft a narrative around that.

“Anything that is a passion for the owner should be communicated, because that is what gets them out of bed every day. The shop is very much a reflection of the owner and what they care about. The narrative is the opportunity to tell that story before someone walks through the door. It is sort of the DNA of the business,” Zoebelein continues.

And regardless of the details of your specific shop’s narrative, there are always certain key points that should be conveyed and somehow intertwined with the messaging.

“Customers care about speed, accuracy, customer service, how they are treated, and how easy it is to perform. No one wants to deal with car accidents, so how do you make it super easy for the customer, even beyond what the insurance company is trying to do for them? If you can make the customer experience really easy, they will recommend you, and that word of mouth will spread,” Zoebelein says.

And even though your shop may not be on the list of approved shops given to a customer by the insurance company, the goal of the narrative is to get the customer to come to your shop anyway.

Marketing the Narrative

ing to draw customers who value that fact.

“The narrative can help attract the customers you want to work with if it’s done right,” he adds.

Elements of a Good Narrative

Unlike a brand, which is fixed, a narrative is dynamic, because it could change, as it is an unending story. As a business changes and grows, so should its narrative. This dynamic narrative mirrors the collision repair industry, which in itself is dynamic.

“If the shops are evolving, the narrative should or will evolve,” Zoebelein says.

In crafting a narrative, Zoebelein notes he would start with the origin story of the company, especially if it’s a multigenerational business. “I would start there; how long the shop has been in business. If it’s not a multigenerational one, I’d start with the owner, their background, and what got them into the business. And then I would probe

May 2022

Having an interesting story to tell is only half the battle; the narrative will not serve its purposes if no one is listening.

That is why twin sisters Adriana and Sabrina Santostefano shout their narrative from as many social media rooftops as possible.

The Santostefano sisters grew up in their grandfather’s auto body shop in Middletown, Connecticut, always finding cars to be fascinating. Knowing that they wanted to be business owners one day, the two earned marketing and communications degrees in college.

The sisters transitioned into the business in 2013 as their grandfather started the retirement process; in 2015, the two officially became owners of Santostefano Auto Body, which has been in their family since he opened it in 1973.

The sisters’ grandfather did things the old-fashioned way; he did not even have a website. “He did the old school marketing—a church bulletin,” Adriana says.

They knew they had an interesting story to share: how two young females in a

37

Steps to Creating a Narrative 1. Collaborate with a marketing expert who understands the collision repair industry, Zoebelein says. Someone

familiar with the industry can help you ferret out the key points needed to construct a compelling narrative.

2. Quantify what it is about your shop that makes you different and to get

the customer to understand that not all body shops are created equal.

3. Ensure your shop’s narrative make sense to the average person. One

strategy is to create specific pages on your website that explain the industry and the dangers of improper repair.

Then from there, Zoebelein adds,

it’s all about marketing.

male-dominated field came to own a collision shop. But first, they had to win over the trust of their customers, especially as they were something of a unicorn. That’s where the narrative came in handy. “When we stepped in, there was a lot of hesitancy from the community,” Adriana says.

Pushing back against a perception that they didn’t know what they were doing, they set out to show the community that they, indeed, were capable by taking advantage of as many forms of social media as possible. “It is important to be omnipresent on different platforms,” Sabrina says. The sisters continue to grow their online platforms all the time—Facebook, YouTube, Instagram—drawing upon their narrative time and again so that their customers can learn what sets them apart.

Zoebelein agrees with the strategy. “The customer should be able to find the narrative quickly, and everywhere. “At the very minimum, it should be on your website,” he says, and even on TV, radio or Facebook ads.

“Everywhere your name is, it should be—if there’s an opportunity to customize it and craft it, it should be where the storyline goes. Communicate in such a way that a customer can understand it, digest it quickly and make a buying decision.”

fenderbender.com

REAL STRATEGIES FOR COLLISION REPAIR SUCCESS

“This magazine has been a key component to our organization in keeping us up to date with new vehicle trends and technologies in our forever evolving industry.”

—Jonathon Best, Vice President, Fender Mender Collision, Charleston, S.C.

T O S U B S C R I B E O R R E N E W AT F E N D E R B E N D E R . C O M / S U B S C R I B E

COLUMNS

PROCESS DRIVEN

Recruiting Outside the Box There’s auto industry talent all around; you just need to know where to look These days, as most auto body shop owners

know, trying to recruit techs to the industry is a major headache. Many business owners have chosen to go without or try to recruit talent from competing shops, but the real key to ending the tech shortage is for every shop to have processes in place to train new blood into the industry.

And that goes hand-in-hand with recruiting them, because right now you can have the best recruitment program, but it’s about finding the right techs. In auto body our biggest obstacle is to get young talent in, and then get them to the point where they become, for lack of a better term, journeymen techs, estimators, etc.

It’s so important for owners and businesses to invest in being able to train someone new coming into the industry, so although we still pay our journeyman techs more, new techs still get paid a decent wage, and they should continue to see their wages grow as their skill set progresses. I’ve found that this process works well, but as an industry we’re at the point where we’ve got to put our foot on the throttle in this area. I don’t have exact stats to put with this, but I know there are areas of the country where there’s still a crazy amount of work for body shops, yet the focus is still weighed too far in the direction of trying to poach talent.

I’ve heard that many shops have had a fair amount of success recruiting military veterans who have an automotive background.

To that point, just the other day I had a guy who was working on my boat, and he seemed very handy, and I said to him, “Have you ever thought about fixing cars?” Basically my argument to him was that if you can fix a boat, why can’t you fix a car? Utilizing people who can be cross-trained from other industries (electrical, audio/stereo etc.) can be an effective approach to take when recruiting techs.

I don’t believe everyone should attend a traditional four-year college. If you didn’t perform well in high school or didn’t enjoy it and your career path doesn’t necessarily require a college degree, and you’re good with your hands or have a knack for working on cars, I’m a firm believer that those are the recruits we should covet the most.

My oldest son is a senior in high school and is applying to colleges. He’s a very scholastic kid and a traditional college is definitely

May 2022

his path. So as we’re touring these colleges, they take you around campus and show you around, and at the end you find out how much the school costs to attend per year. We were on a tour of schools on the East Coast at one point, and after visiting each school I’d jot down how much it would cost to attend that college prior to receiving any student aid, etc., and I’d simply google what the average income for a graduate of that school is. Time and time again, the results were shocking. Google commonly shows you what an average graduate of a particular school makes 10 years after graduation, and I’d put 80 percent of our staff’s paychecks against what most of these four-year graduates make a decade into their career.

Another benefit not often shown to young recruits is the benefits of one trade over another.

One of my closest friends owns an electrical contracting company, so his staff travels to different areas in Alaska to complete contract jobs. Oftentimes these guys are working in the winter in buildings that have no heat, they’re freezing their butts off completing electrical work on installing lights on the outside of a building. And you think of the stigma the body shop industry has of dirty hands and dirty shops, the reality is that as a tech you’ll be working in a nice, warm shop making the same (or more) amount of money, that’s well lit and has all the equipment you need, and you can work all day in a t-shirt and pants. Or if you want to work road construction and you’re in a hotter climate down South. Do you want to be outside in Arizona working in 115-degree weather, or fixing cars inside at 70 degrees?

But they’ll never know this unless we can actually get these kids in our shops, and instead of recruiting against other body shops, show these recruits what it’s like to be in a modern shop, and as an industry we don’t do a very good job of that. I know I’ve shifted my focus from trying to poach employees from other shops, to figuring out how we can attract fresh talent. We’re even toying with incentivising our staff to be big promoters of us, and maybe that incentive increases if they’re able to grab someone from outside the industry. If your marketing budget is being used to trying to attract workers from a shop down the road, why aren’t you spending just as much trying to recruit someone new into the industry?

39

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

CASE STUDY

OVER-HIRING FOR LONG-TERM SUCCESS

Why one shop owner keeps his employee roster above capacity with career-minded recruits

By H I L A R Y D A N I N H I R S C H

I T ’ S N O S E C R E T that the automotive industry has experienced a significant labor shortage, particularly during the pandemic.

At the start of the pandemic, C.J. Paterniti, president of DS Automotive Collision and Restyling in suburban Cleveland, Ohio, had 80 employees. In what seems like a reversal of the norm, Paterniti since has grown his staff to 90.

His secret is to take a proactive stance regarding recruitment efforts—even when he doesn’t have any job openings—with a focus on retention strategies.

The Backstory

The Problem

During The Great Resignation, 4.5 million people left their jobs in November 2021 alone, according to figures released by the Bureau of Labor Statistics. But even before this, the auto collision repair sector has struggled with worker shortages—and it’s only gotten worse.

This pervasive problem can keep even the most successful business owners up at night. “I wake up every morning trying to figure out how to do the same auto business with one less person, because someone may be off work or may quit; you have to have this mindset,” he says.

Of course, it can be hard to replace a senior technician with years of experience and mechanical aptitude with someone fresh out of trade school.

GETTY

Paterniti’s father started DS Automotive

in 1977 in suburban Cleveland, Ohio. Currently, the company has three collision repair locations serving Northeast Ohio, one of which contains an accessory business.

Another facet of the business is Defender Auto Glass, with four facilities throughout the region.

During the pandemic, Paterniti estimates he lost about three employees among his seven locations, and all of them left the industry altogether. “They were Gen Y, about 25 to 30 years old. I don’t think their hearts were set on the industry,” he says.

When Paterniti received the results of his yearly employment engagement survey, the employees who stayed listed three

buzzwords which described why they enjoyed working for the company: family, organized, and integrity.

Still, while retention is a good gauge of employee satisfaction, employees can and will leave any time and for any reason. Because of this, recruitment is always at the forefront of Paterniti’s mind.

May 2022

40

fenderbender.com

But Paterniti says that many young people are expecting higher starting wages, and it’s hard for him to compete with businesses that pay a high starting wage for unskilled labor. “When we recruit, we try to recruit a career-minded person. We try to qualify people coming in because we want them to be long-term,” he says, adding that he invests a great deal of time and money in training his staff.

“Last year, I spent over $75,000 in education for my staff,” he notes.

It’s this investment of time that pays off and leads to more serious candidates and less company-wide turnover.

The Solution

For Paterniti, the solution to staying ahead of the game and maintaining a full roster of employees has always been to be proactive in recruitment efforts as well as to think outside the box. He uses a multi-fold strategic approach to attract new employees.

The old saying, “If you want something done right, do it yourself,” is easy to say but not as easy to do, and when you run a 90-person company, sometimes you have to delegate others to take over some important tasks.

Because his company is on the larger side, with three distinct, though interrelated, aspects of the business, Paterniti employs an in-house human resources coordinator to help with recruitment, as well as retention of staff. “HR was the weakest part of my company, and I knew it needed to get better, so I focused on that area. I was kidding myself, thinking I could do it all,” he laughs. One of his coordinator’s main job duties is to qualify potential candidates as well as understand the ins and outs of the positions for which he is hiring.

Another major step in recruitment was establishing a relationship with a trade school in the area in order to find new hires.

“Six years ago, I began working very diligently with a local tech school and created an apprenticeship program,” he says.

Specifically, it’s a paid internship program, with a job shadow component.

“They have to qualify for the internship program, have good attendance and grades, which gives them an opportunity to interview with us to be an apprentice. The tech school can prepare kids only so far. We set an expectation for them to have a simple mechanical aptitude, organization, and be

May 2022

on time. The rest of what we offer is on-thejob training. We offer real world experience, which is key when developing kids in this industry,” Paterniti says.

The students complete this internship program during their senior year of high school, and even though they are not automatically offered employment with DS Automotive, Paterniti estimates he has hired 12 graduates straight out of the program over the past five years.

And the participants learn more than just automotive repair skills. “In addition to trade skills, they will learn soft skills and life skills, like stress management and organized lunch-and-learns. I do that for all my staff, not just apprentices,” Paterniti says.

Another recruitment strategy—practically essential today—is to have a presence on as many social media platforms as possible: Facebook, Constant Contact, Indeed, Instagram, Twitter, and TikTok. He also offers a signing bonus for new staff members as well as a referral bonus for employees only, provided the new employee stays for a minimum of 90 days.

Paterniti also aims to engage his staff with regular after-hours events, such as a golf outing or Friendsgiving celebration, allowing the employees a chance to bond. “I want that corporate-style business with a family feel. This is not just a job where you come in and punch a (time) clock,” he says.

This close-knit company culture gives him a leg up in recruiting and has the bonus effect of being good for retention.

The company itself gives back to the community in multiple ways, such raising money for various charities. It also offers two paid volunteer days each year. Being both visible and charitable in the community is part of the company philosophy, and though the motivation for having a sense of generosity is not to attract new employees, it often has that effect.

And Paterniti will go out of his way to find the right person for his company. Currently, he has a “phenomenally talented’’ tech school prospect who rides two bus lines for his apprenticeship because he cannot afford a car. “He is going to be offered a position, and I’m trying to find him a vehicle, to get him reliable transportation, so he can have a successful life,” Paternity says.

The Aftermath

Unlike many companies that struggled

41

to stay open and functioning during the pandemic, DS Automotive Collision and Restyling is growing and thriving, with more employees now than prior to the pandemic.

With these recruitment strategies firmly in place—and effective ones at that—the company’s stability and growth is on a forwardmoving path.

“I want to do my best to make sure my staff is the most successful they can be; I want people to come work for me who see themselves become successful,” he says.

On the flip side, he will not employ someone who only cares about making money or whose values and attitudes don’t align with the company’s. “They could be the most talented person in the world and the hardest to employ. An uncoachable kid is an unemployable adult. Just because they can make me a lot of money doesn’t mean they’re a good fit for my organization,” he notes.

Besides, the company has the advantage of having been in existence for 45 years, so it is a well-established name in the community.

“We have a brand that people know; we try to do the best we can every day,” Paterniti adds.

And when it was time to expand the company, he branched out to Chardon, Ohio, where he was raised. “We are well known, that is why I went to that location when I expanded. There’s value to my family’s name,” he says.

The Takeaway

The truth is, Paterniti says, is that collision shops have to always be on the offensive when it comes to recruiting.

“It’s always been easy to sit back and get applications, but we’re in a day and age where we have to eat what we kill. The mindset is that you have to be aggressive in this industry. You have to be offensive in how you attract talent. You have to adapt to the circumstances and to the environment. Be proud of who you are and offer all the additional benefits you have to offer; pride yourself on that,” he says.

If he has any advice for other shops, it’s to “Focus on a true need, define what you’re actively looking for, and be proactive in going out and trying to attract employees. You have to have an optimistic perception if you want to succeed in any industry, especially in this one.”

fenderbender.com

IA800

ADASACCELERATED

CALIBRATIONFASTER SET-UP FOR YOUR EXISTING FRAME IA800 EXPANSION PACK • SET UP FRAME FASTER • INCREASE ACCURACY OF MEASUREMENTS • ADDS WHEEL ALIGNMENT PRE-CHECK CAPABILITY

IA800 EXPANSION PACK INCLUDES

STEERING WHEEL LOCK I 24V POWER ADAPTER I CAMERA UNIT (3 PCS) I WHEEL CLAMPS (4 PCS) I TARGETS (4 PCS) | DISTANCE TARGET I WHEEL CHOCKS (2 PCS) I TABLET SUPPORT

This Expansion Pack Does NOT Include the Autel ADAS Standard Calibration Frame or MaxiSYS Tablet.

TEL: 1.855.288.3587 I WEB: AUTEL.COM EMAIL: USSUPPORT@AUTEL.COM FOLLOW US @AUTELTOOLS ©2022 Autel U.S. Inc., All Rights Reserved

SCAN TO WATCH

TRAINING VIDEOS

YOUTUBE

ADAS: GETTING UP

ADVERTORIAL

TO SPEED

As of May 2018, backup cameras became a mandated feature on new vehicles in the United States and Canada. And by this September, twenty automakers say that 95 percent of their vehicles will include Forward Collison Warning (FCW) and city-speed Automatic Emergency Braking (AEB).

Audi, BMW, Ford/Lincoln, Honda/Acura, Hyundai/Genesis, Mazda, MercedesBenz, Subaru, Tesla, Toyota/Lexus, Volkswagen, and Volvo have already met that goal.

Many, if not most, of these vehicles have camera-dependent systems such as Braking (AEB) with pedestrian detection and even some Blind Spot Detection (BSD). And these are just the basic systems at this time. The front-facing cameras are also used in traffic sign recognition, automatic parking, cross-traffic alert, and adaptive lighting systems. These technologies’ emergence and increasing popularity have added layers of complexity, time, and cost to vehicle repairs, including glass repair and replacement.

How vital is calibration to the effectiveness of ADAS? Consider this Insurance Institute for Highway Safety (IIHS) test highlighting the frightening result of a misaligned front camera and its effect on the safety system. The IIHS tested a vehicle with a front-facing camera misaligned by 0.6 degrees to the right. This variance affected “the perceived collision-threat, thus delaying the driver’s prompt or brake warning and

then delaying when the vehicle itself initiates braking,” the IIHS found. The result was a warning prompt that gave the driver just 2.8 seconds to respond and gave the vehicle just 0.9 seconds to brake. It didn’t, and the vehicle collided with the obstacle at 20 mph.

systems provide upgradeable options to enable technicians to efficiently calibrate cameras, night vision, Lidar, and radar-based systems that are instrumental to vehicle operations and the safety of its passengers.

The Autel calibration systems include patterns, targets, radar, and night vision calibration tools used with the MaxiSYS ADAS software. In addition to communicating with the ADAS component and initiating calibration, the tablet displays basic yet essential OE-vehicle requirements to ensure correct vehicle height, such as parking on level ground, filling fuel and fluids, and carrying no additional cargo.

Each calibration screen lists the tools needed, including the correct vehiclespecific target or pattern part number.

The tablet displays exact OE-specific measurements and easy-to-follow instructions. The standard frame system is also available with the IA800 optical frame-to-vehicle positioning system that uses six cameras and wheel-clamp targets to quickly set the frame’s distance, angle, and offset to the vehicle. The use of the IA800 significantly reduces the pre-calibration setup time—the most time-consuming part of the entire calibration process.

It’s essential to not simply learn the basic concepts behind today’s vehicles’ many advanced systems but also be knowledgeable about the different ways each brand and model uses the data from these input devices—including the cameras and radar sensors—to control how the vehicle reacts. Therefore, it falls on the technician’s shoulders to learn the systems of the vehicles they most often service and continues to keep up with emerging trends.

The Autel calibration systems include patterns, targets, radar, and night vision calibration tools used with the MaxiSYS ADAS software.

As automakers advance their systems toward the autonomous vehicle, there is little doubt that these drivers’ assist technologies will necessitate technicians and their shops to evolve and adapt their learning curve to prosper.

So, it’s more than comforting that Autel, a leading developer of automotive diagnostic scan tools, produces two ADAS calibration systems, the MaxiSYS Standard Frame, and the MaxiSYS MA600, a mobile frame system. Both

TEL: 1.855.288.3587 I WEB: WWW.AUTEL.COM EMAIL: USSUPPORT@AUTEL.COM FOLLOW US @AUTELTOOLS ©2022 Autel U.S. Inc., All Rights Reserved

Close to 60 million vehicles with an Advanced Driver Assistance System (ADAS) are on the road today. Either by government regulation or vehicle brands wanting to meet consumer desires, that number will only grow.

SCAN TO WATCH

TRAINING VIDEOS

YOUTUBE

STRATEGY

ADAPT

WHO’S AT FAULT WHEN AN AUTONOMOUS VEHICLE CRASHES?

Liability in AV crashes is the auto industry’s Wild West

By N O A H B R O W N

legal responsibility from the driver for the car’s actions.”

However, we are now quickly approaching the point where current law and precedent will be outpaced by the growth of self-driving technology.

According to the KBB report, MercedesBenz is currently working on an ADAS system, which it calls Drive Pilot, that it claims is capable of Level 3 autonomy.

More specifically, the automaker says “the system can take over driving below 40 mph on pre-mapped highways.”

Though it only has Level 3 functionality that can be used very sparingly, the jump to Level 3 is big. As KBB puts it, Level 3 means the car is now responsible for itself.

When an accident happens with one of those vehicles, then, who is at fault? The Professional Insurance Agents Association recently put out a brief article addressing that issue and, to put it bluntly, there still isn’t a definitive answer to that question.

“This technology is still so new that lawsuits involving accidents with driverless cars will have to be taken on a case-by-case basis,” the PIA report said.

“Liability for these types of accidents will have to be determined by the courts ‘based on using existing law to the new facts of specific incidents.’”

Essentially, it’s a legal Wild West for the auto industry, and those who develop the tech first will have a large say in how that landscape is changed.

Per the KBB report, Mercedes VP of Automated Driving George Massing says

the company plans to accept liability for anything that happens while its Drive Pilot system is engaged, though he added that the company will probably have to go through each state individually for that plan since there are few federal autonomous driving laws.

Despite that intention, the report says it still isn’t entirely clear if Mercedes will be able to accept that liability on behalf of its customers. The automaker says it can because its system “is capable of doing things other automation systems can’t” such as identifying potential hazards far enough in advance to give a passenger a 10-second warning and the ability to resume control of a vehicle.

“That apparently leaves Mercedes confident enough in the system to accept responsibility for any accidents it might cause,” the report says.

However, there are some issues due to jurisdiction of some federal and state laws regarding liability for software manufacturers and traffic accidents that could prevent Mercedes from claiming liability.

Expect to see this background legal battle take place across the country in the coming years. Depending on which side gets their way, that could dramatically impact the future of autonomous driving in the U.S. “If Mercedes is able to convince regulators and drivers that the company is responsible for decisions its software makes,” the report says, “that could go a long way toward making Americans more willing to accept self-driving technology.”

GETTY

F O R A S L O N G A S C A R S have been on the road, drivers have carried at least some responsibility for everything that happens to them and, maybe more importantly, because of them.

That, of course, includes crashes—drivers who cause accidents are responsible for damages incurred. But what happens when there isn’t a driver to blame?

There aren’t many laws in the books or legal precedent from court cases regarding autonomous driving due to how new the technology is, and that’s due to one simple thing: There still aren’t any fully autonomous vehicles on the road. Vehicles that employ up to Level 2 ADAS systems, which are the highest currently available, still rely on driver input for most of the essential tasks to perform the act of driving a vehicle.

Though a car can help a driver stay within a lane or detect when another vehicle is ahead of it and slow down accordingly using tools such as adaptive cruise control, it cannot run itself and needs a driver to operate. Because of that, current liability law is pretty straightforward, and according to a report from Kelley Blue Book, the driver is still responsible no matter what an OEM’s ADAS suite is called or claims to do.

“These systems include GM’s Super Cruise, Ford’s BlueCruise, and Tesla’s misleadingly-named Full Self-Driving (even Tesla admits the system is not self-driving),” the report said. “They relieve some of the workload of driving under specific circumstances. But they require the driver’s full attention. The companies take no

May 2022

44

fenderbender.com

FINA NCE+OPER ATIONS

JAMES WILLIAMS

INCREASING PROFITS FOR PAINTS AND MATERIALS

Even with paint costs increasing, implementing a few new strategies can help boost your bottom line

By H I L A R Y D A N I N H I R S C H

May 2022

45

L I K E M OS T I N D U S T R I ES, pandemicrelated shipping and logistics issues have greatly affected prices on supplies, and the auto body industry is no exception.

“Generally speaking, industry-wide materials costs are increasing, and the shipping and stocking issues are all

fenderbender.com

STRATEGY

things that are affecting paints and materials cost,” says Brian Stebbins, marketing manager with Sherwin-Williams Automotive.

This cost increase in supplies can make a decent profit margin seem even more out of reach than ever. But that doesn’t mean you can’t make a profit on paint jobs. In fact, it just means you have to strategize and make some tweaks in your practices.

Definition of Paints and Materials

It may seem obvious but knowing what is included in the definition of materials can help delineate what is actually profit.

Stebbins says that liquids are the highest dollar revenue generator, and that includes undercoats, primer, sealer, base coat, top coats, etc., all of which will represent close to 70 percent of the paint and material cost and sales per repair. The remaining 30 percent will be made up of items used in preparation for getting the vehicle ready for painting: masking paper, tape, abrasives, grinding discs and other abrasives, etc.

Lowering Costs and Increasing Profits

Lowering costs and increasing profits are two sides of the same coin when it comes to maximizing margins on paints and materials. Fortunately, there are some basic steps that collision centers can take to help in either direction.

Inventory Management Control

One effective way to increase profit margins on paints and materials is to only use what is needed per each job.

For example, Collision Core, SherwinWilliams’ branded inventory management system, allows a shop to build an approved product list as part of that system. It also is able to track product overand under-usage, and inventory can be adjusted accordingly, therefore maintaining stock at optimal levels. The Collision Core system also captures the usage of billable items that can be invoiced against specific repair orders.

“It’s designed to help reduce redundancy in inventory. The ultimate goal is to reduce the number of SKUs yet have everything needed to do the repair properly,” Stebbins says.

May 2022

“We often suggest they secure materials and dispatch those as consumed; inventory management is tied to that, so technicians will check it as they consume it. That prevents overbuying, so they are not pulling out 2-3 boxes of an item, but just pulling out what is necessary for a job that they are on, so that they are not overstocking,” Stebbins adds.

Waste Control Standards

Tracking and measuring liquid wastes and overpours is important for mitigating loss and waste. Improving the mixing process will help with waste reduction. One solution offered by Sherwin-Williams’ Collision Core is through their Collision Core color retrieval systems and scale. “Everything is mixed on a scale, and a computer program tracks how many ounces are mixed in every product,” he says.

It is also important to use the recommended spray equipment to ensure against not overapplying paint in the spray application.

Another technique to help mitigate waste is to use the correct shade of gray undercoats to achieve hiding faster. “The correct lightness or darkness will help your hiding so you don’t have to do extra coats,” Stebbins says, adding that leftover paint should be used for a ground coat.

Stebbins also notes that you can eliminate cut-ins by painting parts off the vehicle. “When you have a new fender, an older practice was to paint the edges of the fender, put the fender on the car, and paint the exterior later. Now, they’re putting the part on a stand and painting the fender all at once, so they are not masking or doing extra work,” he says. Thus, by eliminating the need for masking, there’s no overspraying.

Training Staff

Training staff on how to reduce waste is another key factor in reducing costs, along with having them track their usage of materials. Training should periodically be done in-house or provided by the paint manufacturer.

Stebbins also suggestd having technicians attain certification training for application of a car and color verification.

Color verification, up front, reduces the risks of mistakes and therefore, reduces the potential for wasted paint.

46

Another way to lower costs is to build quality into the repair process so as not to have to redo work. Measuring and monitoring is certainly a key piece; if you’re not measuring your performance, you have no idea where you are at,” he says.

An Accurate Accounting Analysis

First and foremost, Stebbins says that it’s essential to complete an accurate damage analysis, or a blueprint, to charge for all damages related to the accident. “Sometimes labor operations are not all fully accounted for, and the estimators could miss items they could charge for paint material,” he says. That is why it’s important for estimators to work with technicians to capture everything that is damage-related and make sure it is reflected on the estimate.

He also said it’s important to properly classify all traditionally “not included” items, like car covers and flex additives as paint materials sales to get a more accurate gross profit margin calculation.

Other Tips

Stebbins notes that Collision Core’s digital suite offers other applications designed to reduce costs and increase profits, including a color retrieval system; inventory; quality; scorecard; and production. For example, “The Scorecard captures sales and costs associated with paint materials. The Scorecard helps the shop with that data/reporting, a separate, standalone tool, tied to its estimating system. We electronically tie in to the system to capture data on the sales side,” he says. The Scorecard helps monitor how many hours on average they are capturing per estimate versus the benchmarks of the industry.

Another example is the Collision Core production application that allows shops to properly schedule the correct amount of work based their shop’s capacity and manage the flow of production through the shop. “This also ultimately contributes to a more consistent flow in and out of the paint shop, contributing to the Paint and Materials gross profit percentage, he says.

“Data is king today—that is true about every industry in business today, capturing the data and using it to help make good business decisions,” Stebbins says.

fenderbender.com

COLUMNS

IN THE TRENCHES

Stop Writing Estimates How much is that estimate costing your shop?

JOE GRETO

One of the biggest time wasters in a shop

is writing estimates for customers. Now hear me out. If it’s a self-pay repair it’s a different story. I’m talking about the insurance pay repairs. The Insurance pay customer comes in for an estimate, scheduled or walk in depending on how you operate, and at minimum your estimator is going to spend 15 minutes with them. More than likely, however, it will be 30 to 40 minutes with that potential customer.

How much is that estimate really costing you?

Depending on where you are in the country the estimate is likely $10 to $15 for your estimator’s salary, plus cost of paper, ink, and supplies. On top of that, what could your estimator have been achieving instead of writing the estimate? Could they have been making follow up calls, updating customers, calling insurance companies? In reality that estimate is costing the shop more like $30 to $40 an estimate.

I can already hear the pushback from shop owners saying $30 to $40 for an estimate that a good estimator will convert into a job is really a small price to pay. Especially with the average cost of ROs going up and the standard RO cost being much higher than in years past.

The estimator spends 30 to 40 minutes writing an estimate; a good portion of that is going to be spent on estimate writing and not talking or focusing on the customer. When talking about non DRP shops, what happens with the estimate then?

Does the insurance company care what you write up? Are they going to use that estimate? Do they even care what we have to say in the beginning of a repair? Let’s not fool ourselves; the answer is no. So why do we continue to write up estimates that we know won’t be used?

We end up having to explain to the customer that more than likely the insurance company will write their own estimate, after the insurance company tries to steer them to one of their “In Network” shops. The estimator will try to combat a customer’s frustration when the insurance company writes up a lesser estimate than they wrote; it doesn’t return their calls in a timely manner; or when they have to set up rental reservations, etc. And we struggle to resist bad mouthing the insurance company because it will just make us look bad in the process.

Let’s say after all those hoops your customer jumps though we do convert that opportunity into a repair order once they have their “approved” insurance estimate. What happens then?

May 2022

Most shops will use the customer’s estimate of record from the insurance company as their starting point in their management system, and then build the supplement request off it after the vehicle has gone through tear down and your estimator/blueprinter gets a hold of the vehicle. The initial estimate just fades away, never to be seen or referenced again.

So what’s the alternative? We aren’t estimators, we’re advisors. Estimators deal with insurance claims on a daily basis; your customers don’t. Have your estimator step into the role of advisor, and be the advocate for your customer in all parts of the claims process. Have your estimator capture the customer and vehicle information and advise on insurance claims practices for whatever insurance company the customer is working with.

We know which company is going to do a virtual estimate, photo estimate, send a field adjuster or a third party appraisal company. We know which ones will have us send up pictures and an estimate and butcher our estimate and write their own. We know where initial payments will most likely be sent or what happens if there is a finance company involved. Advise the customer on how the claim will be handled with the company they are dealing with.

Be an asset for your customer. Instead of writing the estimate, explain to the customer how the insurance company doesn’t care what we say initially. If the insurance needs to do a photo estimate, do the photo estimate for them. If it’s a virtual estimate, do the virtual estimate for them. If a field adjuster will inspect the car, set up a time for the adjuster to inspect at your shop. If all the pictures need to be emailed in, email them in. If you need to write an estimate and send in pictures, then you write an estimate. Follow up with the insurance company for the customer and keep the customer in the loop.

Explain to the customer how the supplement process works and how the shop will be an advocate for them. How your shop will “review” the estimate from the insurance and then submit a request to make sure repairs are done correctly. How you have their best interest and safety in mind and not just the bottom line of the Insurance company.

I don’t believe most customers really care about the estimate. What they do care about is being seen and heard. One of the favorite sayings in my shop is, “We listen to understand.” I challenge you to stop writing estimates and focus on your customers and understanding their needs.

47

TIFFANY MENEFEE

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

EMAIL:

tiffanykaymenefee@gmail.com

ARCHIVE:

fenderbender.com/menefee

fenderbender.com

COLUMNS

OUTSIDE THE LINES

Defending Against Employee Poaching Build a culture that creates loyalty to ensure your best workers stay in-house a competitor recently? If not, have there been attempts to poach them? I’m sure you can answer at least one of those two questions with a resounding yes. So what are you doing about it? Do you have a plan to defend the attacks?

Regardless of how well you run your facility, if you don’t have a team of people helping you accomplish your goals you will ultimately fail. You can market incredibly well and bring in more vehicles to repair than anyone else, but what good is it if there is no one there to fix them?

You can create the best system full of amazing processes but if no one is there to execute them, what value do they have? That would be a big zero.

So how do you combat the increasingly aggressive poaching going on? Build a culture that creates loyalty so your shop becomes a one-way employment street. You only want techs coming in, not going out.

Here are some steps to take that will guarantee building loyalty.

Show Appreciation How often do you thank someone on your team for work they performed? You can’t answer, “Well I pay them every week.” If that’s your typical answer, think about this: what employee doesn’t get paid every week? I challenge you over the course of the next month to genuinely thank each employee (twice) individually for work they have done. The key word here is genuine; you must mean what you say. A fake thank you is worse than no thank you at all. I’m going to tell you now that you’ll be overwhelmed by the positive responses.

Everyone wants to be recognized for who they are. That’s why so many people post their lives on social media, so they will get recognized. If you become a leader who expresses gratitude for the work your employees are doing, your workers will keep showing up the next day for more. By the way, the cost of doing this requires no financial investment on your part.

Be Transparent This piece of wisdom took far too long for me to learn. I am a very private person by nature; I don’t share much unless people ask me. And at work I typically would be fiercely private with the details of the company. My past behavior isn’t something you want to replicate, as it doesn’t breed a culture of trust. Once I started to share numbers, future

May 2022

plans, and even details of my personal life, I felt the increase in trust I had with our team.

A human being’s natural inclination is to lie, or hide the truth, when it fears negative consequences.

Hiding the truth always leads to bad outcomes; it just delays the amount of time before you feel the pain. Open up with your team about things that scare you to talk about; their responses will pleasantly surprise you.

Work Together I’ve always enjoyed a team environment. Whether it’s a sports team, a group of volunteers, or family/ friends working together on a project, it’s where I’m most comfortable. I believe our industry focuses too much on individual achievement. Tracking a single person’s efficiency is a waste of time. Take a very efficient painter and put him in a shop where the body techs do awful work and you’ll find that the painter is no longer very efficient. Recognize the team’s achievements, not the individuals.

Create an environment where each team member helps others get their work done. The best way to do this is cross-training. If you allow your team to work together, they’ll find comfort and value in the people they work with. They’ll fear going to another shop knowing the new team they’ll be working with is likely to be very different.

Throw a Party Find reasons to celebrate together. It could be birthdays, work anniversaries, birth of a baby, buying a new house, etc. People like parties, especially when someone else is footing the bill. You don’t have to get fancy; you can buy pizzas or just get a cake. Going back to an earlier point, this just proves that people like to be recognized. I’m always shocked that when we celebrate something in one of our teammate’s lives, how many other people come up to me and tell me that it meant a lot to them that we did that.

All of these tips have a common theme in that they show you care about your team. If you don’t care about the people in your company, sooner rather than later some other company will be showing them how much they care. If you create a culture of caring for your team, your employees won’t go running just because someone else offers them more money. I’ve heard this firsthand from some of our team over the years and it’s reinforced the value of caring for them.

48

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

owner of Boggs Auto Collision Rebuilders in Woodbury, New Jersey 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

Have you had any of your employees poached by

At LKQ, a passion for “better” is what drives us.

For LKQ, the world’s “good enough” isn’t good enough.

We believe better is the reward for those who keep striving. We bring this passion for better to our work every day.

Since our founding, we’ve poured this passion into a better way to process and re-use parts, all with the strong desire to improve the world “one part at a time”.

Today, LKQ is the auto industry’s largest recycler of vehicles. Our salvage vehicle operations recycle more than 90% of the materials from end-of-life vehicles that would otherwise end up in a landfill.

New Aftermarket | Recycled OE | HD Truck Parts Remanufactured Engines & Transmissions | Paint Products

Call Us : 866-LKQ-CORP Visit Us Online : www.LKQCorp.com

The Most Complete Line of Collision Repair Equipment Available From A Single Company.

(There’s A Lot More That We Couldn’t Fit On This Page.)

106 EXT

MULTIBENCH

Structural Straightening Benches

Structural Repair Workstations

14,500A

Welding Machine

Touch

Q Series

Welding Machines

PULL UP!

Electronic Measuring Systems

Repair Systems

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

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