New Jersey Automotive April 2016

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THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

April 2016 $595

www.grecopublishing.com

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New Jersey Automotive | April 2016 | 5

P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2015 - 2017 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dandmautobody.com

Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com

Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

PUBLISHER Thomas Greco (thomas@grecopublishing.com)

DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)

MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com)

CONTENTS

VOLUME 46, NUMBER 4 | April 2016

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES 12 PRESIDENT’S MESSAGE

16 EXECUTIVE DIRECTOR’S MESSAGE 23 I-CAR CALENDAR 66 NJA ADVERTISERS’ INDEX

LEGAL PERSPECTIVE by Mitchell Portnoi, Esq. 24 Diminished Value in New Jersey - 2016 VENDOR SPOTLIGHT by Joel Gausten 28 Wheel Collision Center: Wheel Manufacturing Done Right

COVER STORY by Joel Gausten

32 NORTHEAST® 2016 SETS A NEW STANDARD: AASP/NJ CELEBRATES RECORD-BREAKING SHOW 37 Shops Fight Back: Leadership Meeting Explores Legal Success & Stress

38 Today’s Repairs: Myths, Realities and the Need for Certification 43 No Excuse for Doing It Wrong

45 The Connected Consumer Tsunami

49 FINALLY Getting Paid for What You Do

53 Positioning Yourself for Greater Profit

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 59 Wharton Insurance Briefs NO BRAKES 64 Surf’s Up

by Ron Ananian

ART DIRECTOR Lea Velocci (lea@grecopublishing.com)

OFFICE MANAGER Donna Greco (donna@grecopublishing.com)

CONTRIBUTING EDITORS

Charles Bryant • Tom Greco • Jeff McDowell Mitch Portnoi • Dave Laganella • Ron Ananian

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2016 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover © John Argueta / Jargapix Photography. Stock Images courtesy of www.istockphoto.com.

Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Tom Elder Bob Everett

Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano Michael Lovullo Sam Mikhail Ron Mucklow George Petrask

Russ Robson Jerry Russomano George Threlfall Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

New Jersey Automotive | April 2016 | 7

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

THE BUCKET LIST

by THOMAS GRECO, PUBLISHER

I don’t know where the term “bucket list” comes from.

The first I ever heard of it was when Jack Nicholson and Morgan Freeman made a bad movie with that title. It seemed like everyone had a bucket list after that.

For those of you (like me) who didn’t have a clue, apparently a bucket list is a list of things you’d like to do before you die (or “kick the bucket,” as they say). I guess I never thought about a list. I never bought into it in the first place. If I wanted to do something, I worked hard and hopefully got the chance to do it. But I guess it makes for good conversation and, in some cases, a good idea for a column.

It’s kind of silly, really. For a guy my age, there should only be one item on the bucket list: Live as long as possible! But for this story’s sake, let’s pretend I’m Jack or Morgan.

First of all, I think you have to exclude the obvious choices, like winning the lottery or seeing your kids get married and have their own children. Almost everyone would put those on their list, so I’m not going there. I also

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have to write off things that are just physically impossible, like playing quarterback for the Giants or guard for the Celtics…or dunking a basketball. Hell, I’d settle for just touching the net, but that’s another story.

All of that aside, if you know anything about me, you know that the number one thing on my bucket list would have to involve the Beatles. Since I was too young to see them when they toured the United States and they broke up soon after, that’s an impossibility. I have seen Paul McCartney, George Harrison and Ringo Starr in concert separately and – at separate times – I’ve seen them play together. (I’ve seen George and Ringo play at the Rock & Roll Hall of Fame dinner and Paul and Ringo play at a benefit at Radio City Music Hall.) But two – or even three – together does not make it the Beatles.

Seeing a Beatle in concert is incredible, but it has become fairly commonplace over the years. Paul and Ringo tour all the time. I was lucky to see George, but I was still a

mile away from him. I used to go to the Dakota in New York during my teenage years and hang out outside to try and meet John Lennon. Obviously, the chances of that ended when he was killed. Since then, it is almost impossible to get close to Paul or Ringo, so any Beatles-related item on my bucket list became moot.

There are not many other places to go after that. I’m a homebody. I have no interest in traveling outside of Wildwood and Orlando, so landmarks aren’t gonna make my list. I’ve met a bunch of great athletes like Wilt Chamberlain, Larry Holmes and Phil Simms. I’d love to meet Joe Namath, but not enough to put him on my list. I’ve met or interviewed a lot of rock stars like KISS, Alice Cooper and LL Cool J, so that’s no big deal.

Making the NORTHEAST Automotive Services Show the best of its kind? Just did that. Next.

Time to throw the bucket out? Not so fast.

Last October, out of nowhere, I received an email from a British publishing company. It was offering the chance to meet Ringo Starr. Back to the Beatles. It always comes back to the Beatles.

Now I know what you’re thinking. “It’s Ringo. Does he really count?” It’s an old joke. But I have always believed that the Beatles would have never been as big without Ringo. The other three have always said the same thing.

People forget that when they first got here, when they made their first amazing impression on America, it was Ringo who was the most popular Beatle by far. So screw that argument. It’s a BEATLE. And it’s MY bucket list.

However, meeting a Beatle doesn’t come cheap. In fact, it is costly. Very costly. I honestly didn’t know if it was worth it. I asked my co-workers. I can’t repeat what they said to me. Let’s just say it rhymes with “ducking lazy.” I asked my family. They rolled their eyes. I asked some other Beatle nut friends. They said, “If I had the money, I’d do it.”

That was no help. I mean, it wasn’t just meeting Ringo. The package included a limited edition print from a book of photos Ringo had just put out, signed by Ringo. Now keep in mind, Ringo stopped signing autographs over 10 years ago, so this item was going to probably be worth the cost in a few years anyway. Still, none of that mattered. It was all about meeting a Beatle.

I went home and I looked around my house. In my living room, there was a prominent portrait of one of our family Christmas cards. It was a recreation of the Beatles’ Revolver album with our four faces in the place of the four Beatles. I thought about the 20 years of those Beatle album recreations we painstakingly put together every Christmas.

I went down to my basement and looked at the walls covered in framed Beatles posters. I looked at my wall of DVDs and thought about the hundreds of times I had watched the Beatles’ movies, concerts and videos. I looked at the hundreds of Beatles CDs and albums I had listened to endlessly for the last 51 years. I thought about how, when every time something bad happened in my life, it was the Beatles that somehow helped me get through it.

continued on page 19

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THANK YOU! PRESIDENT’S MESSAGE

by JEFF MCDOWELL

As I write this message, it is the week after NORTHEAST® 2016, and I am still at a loss as to how I can accurately portray to you, our readers, what I experienced March 18-20. NORTHEAST has continued on a path of

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positive growth ever since our relocation to the Meadowlands Exposition Center, but if you had told me back in 2009 that our event would someday be busting at the seams to the point of expanding to a second level of floor

space, I would have thought it could happen…“someday.” Today, on the heels of NORTHEAST 2016, someday is a lot closer than anyone could have dreamed, and we have you – the automotive repair industry – to thank.

From the wall-to-wall exhibitors who packed our show floor (and, for the first time ever, even our lobby!) to the industry professionals who walked our aisles Friday to Sunday, to the representatives who traveled from around the corner or internationally to be a part of NORTHEAST, I thank you.

Thank you on behalf of AASP/NJ, for turning what was once a tabletop show in Hasbrouck Heights into an industry standard. NORTHEAST has steadily grown to become the leading regional trade event of its kind. We could not have experienced this huge jump over the years without the support of our industry members; this show was created by you and for you. I hope you’ll continue to join us on this incredible ride as we work to bring NORTHEAST to new heights in 2017 and beyond. If you were unable to attend NORTHEAST 2016, I invite you to check out the post-show coverage throughout this issue (as well as a really cool timelapse video of the event at https://t.co/EhiA9AJzJh), but know that even these amazing post-event recaps won’t do NORTHEAST justice. To really experience NORTHEAST, you need to be here. Join us March 17-19 next year for NORTHEAST 2017; I promise it will be a weekend well spent.

Even as we wind down from NORTHEAST, AASP/NJ still has a number of activities and initiatives planned for the coming months, from members-only trainings to informative general meetings, our upcoming Lou Scoras Memorial Golf Outing in the fall and much more. Stay tuned for updates in the pages of New Jersey Automotive or aaspnj.org.

NJA

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New Jersey Automotive | April 2016 | 15

EXECUTIVE DIRECTOR’S MESSAGE

KNOWING THE RULES MAKES A BIG DIFFERENCE by CHARLES BRYANT

I have a question for the collision members of the industry in New Jersey. How many times have you had a vehicle sit in your body shop for weeks waiting for an insurer to inspect the damage so you can get started on the repairs? Or how many times have you had an insurer tell your customer that they will not come out to a body shop of the customer’s choice to inspect a damaged vehicle because the vehicle is drivable and therefore, they have to go to a drive-in claim center for the inspection? Well, I already know the answer. It happens every day. My question is, why are the shops putting up with this?

When I hear of this type of issue, I always ask the same question. Why do you allow this to happen? I almost always get the same answer, which usually is, ‘because that is the only way the insurer will do it.’ What I’ve found is that most collision shops don’t know the rules in this area, so they just accept whatever the insurer says. The fact is, the rules governing fair claim settlement practices in the state of New Jersey actually address issues like this and many other issues that are causing collision shops more stress that they should have to deal with.

On this matter, the rules make it clear that if the insurer intends to exercise its right to inspect a damaged vehicle prior to the repair, it must perform the inspection within seven working days at a location that is reasonably convenient to the customer, rather than at a location dictated by an insurer (like a drive-in claim center or at a competitor’s shop that has a DRP agreement with that carrier). To assist the members of the industry, I have inserted this section of the rules below and highlighted the part referenced here:

N.J.A.C. 11:3-10.3 Adjustment of partial losses (a) If the insurer intends to exercise its right to inspect, or cause to be inspected by an independent appraiser, damages prior to repair, the insurer shall have seven working days following receipt of notice of loss to inspect the insured’s damaged vehicle, which is available for inspection, at a

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place and time reasonably convenient to the insured; commence negotiations; and make a good faith offer of settlement.

In other words, the insured/ claimant has the right to demand that their vehicle get inspected at the shop they have chosen to make the repairs, and that the inspection be performed within seven working days after the claim has been reported. This provision in the rules is helpful in eliminating steering.

Another issue that I constantly get calls on is the problem of an insurer dictating what it will pay for, rather than attempting to negotiate an agreed price. This is in direct conflict with the section of the rules referenced above. The next section of the rules below also requires the negotiations to be conducted in good faith with the goal of reaching an agreed price with the shop chosen by the insured to repair the vehicle, not dictate what they are going to pay for the repairs:

N.J.A.C. 11:3-10.3 Adjustment of partial losses (b) Negotiations must be conducted in good faith, with the basic goal of promptly arriving at an agreed price. Early in negotiations, the insurer must inform and confirm in writing to the insured or the insured’s designated representative all deductions that will be made from the agreed price, including the amount of applicable deductible.

Another problem constantly being reported to me is the case of an appraiser refusing to leave a copy of the estimate with the shop.

When asked why, the appraisers’ most common answer is because they have to submit the estimate to the insurer for review first and then it will be sent to the shop after someone from the insurer has reviewed, and sometimes revised by another person at the insurance company that has never seen the vehicle. I am often told that when the shop finally gets a copy of the estimate, it does not reflect the negotiations that took place when the appraiser was out at the shop looking at the vehicle. This is yet another issue that is covered in the rules governing fair claim settlement practices. The provisions in the rules inserted below make it clear that the appraiser should provide the shop or the vehicle owner with a copy of the estimate when the inspection of the vehicle is completed, not after another party has reviewed and/or revised the estimate that was previously agreed to by the shop representative and the appraiser looking at the vehicle.

N.J.A.C. 11:3-10.3 Adjustment of partial losses (c) If the insurer inspects the damaged vehicle or causes it to be inspected, the insurer shall promptly upon completing the inspection furnish the insured or the designated representative of the insured with a detailed written estimate of the cost of repairing

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EXECUTIVE DIRECTOR’S MESSAGE the damage resulting from the loss, specifying all appropriate deductions.

It is also only too often that we get reports that insurers go to mechanical shops and negotiate agreements with the mechanical shop to repair vehicles that have run over a curb or had some sort of accident that basically only caused damage to the suspension of the undercarriage of a vehicle that would normally be sublet to a mechanical shop by a licensed auto body shop. The problem with this is that every vehicle damaged as the result of a collision must be either repaired by a licensed auto body shop, or the repair must only go to a mechanical shop under a sublet agreement from a currently licensed auto body shop. It is also the responsibility of the insurer to make a reasonable effort to determine if the shop repairing the damaged vehicle has a license and to record the license number.

See provision below: N.J.A.C. 11:3-10.3 Adjustment of partial losses (d) No insurer shall negotiate the settlement of any physical damage claim involving an automobile as defined at N.J.S.A. 39:13-1b with an unlicensed auto body repair facility or in any manner utilize an unlicensed facility in the adjustment, negotiation or settlement of such a claim. It shall be the responsibility of the insurer to

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OUT OF BODY (AND MECHANICAL) EXPERIENCES make a reasonable and diligent effort to determine whether the facility is properly licensed.

We get these calls all the time. The fact is, the insurer is not supposed to utilize an unlicensed shop in any manner. One would think that would mean that the insurer should not discuss the repair with a unlicensed shop, they should not leave a copy of an estimate with the shop or basically make sure that the vehicle owner is made aware that the vehicle must get repaired by a properly licensed auto body shop, or be sublet to a mechanical shop under the license of the properly licensed shop for the protection of the vehicle owner.

These rules that are being pointed out are the rules that insurers are supposed to follow when involved in the settlement of auto property damage claims in the state of New Jersey. There are a lot more rules that actually cover every step of the claim settlement, from start and until the claim is settled and paid. In future articles, we will be going over more of the rules and pointing out provisions of the regulations that directly affect how insurers are required to handle issues referenced above and many more that we get calls on every day. I would strongly recommend that collision shops get familiar with these regulations and begin to apply these rules when such issues arise.

If you are a member of the AASP/NJ and would like a copy of the rules, please feel free to contact the AASP/NJ Hotline at (732) 9228909 and we would be glad to either provide you with a copy of the rules or point you to where a current copy of the rules can be obtained. Stay tuned for more on this subject in future articles.

continued from page 11

F@#k yeah. i was gonna meet Ringo Starr.

The meeting was set to take place at a bookstore in New York.

Ringo was doing a promo about the new book and the meet-andgreet was prior to the event, where he was to be interviewed about the book by Steven Van Zandt (E Street Band/Silvio from The Sopranos).

There were about 10 of us scheduled to meet Ringo and take a picture with him. I looked at the other nine; most of them were draped in Beatle memorabilia and clothing. I thought to myself, “Am I one of these people?”

They took us into the store’s back room, and Ringo’s tour manager explained the rules to us. Ringo would be coming in shortly. There would be no handshakes. Ringo doesn’t do handshakes. Germs and stuff, you know. We could elbow bump if we like, but that was it. We were to step up when it was our turn, pose for the picture, say, ‘Peace and love’ (“Ringo loves when you say, ‘Peace and love.’” Ugh.) and move on.

I was first in line. That was a mistake. I should have fallen to the back and seen what the others did. As it was, Ringo came bopping in, waved and walked over to the photo area. The manager waved me in. I put my elbow out to bump. Ringo didn’t even look at me. “Smile and say, ‘Peace and love,’” said the photographer. I smiled and said, “Peace and love.” The flash went off and I was pulled away. “Next.”

Honest to God, if it was more than 30 seconds, that was a lot. We were shuffled off to the front of the bookstore to watch the interview. I really didn’t hear a word they said. I kept thinking, “Is that all there is?

Shouldn’t I be feeling something? I just met a friggin’ Beatle. My kids and grandkids can show my descendants that they have a picture of me with a truly historical person. Akin to having my ancestors pass down a picture with Shakespeare. Why does it feel so…anti-climatic?”

Look, I don’t blame Ringo at all. I’m sure having people bother you 24/7 for 50 years has to make you wary and cold. Having your best friend and bandmate shot by a fan probably doesn’t help dealing with it much, either.

It was me. And that’s why the bucket list is a myth. As you get older, the only list that matters is the one with the names of your loved ones and friends on it.

That said… This picture is pretty freakin’ cool!

I met a Beatle! NJA

NJA

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CALENDAR APRIL 19 Best Practices for High-Strength Steel Repairs Comfort Suites, Mahwah APRIL 20 Alternative Fuel Vehicle Damage Analysis and Safety LKQ Corp., Lakewood Squeeze-Type Resistance Spot Welding CollisionMax, Pennsauken APRIL 21 Plastic and Composite Repair Hotel Inn & Suites, Parsippany Welded and Adhesively Bonded Panel Replacement Virtual Classroom APRIL 23 Developing the Team and the Business Virtual Classroom

APRIL 5 Steel unitized Structures, Technologies and Repair Comfort Suites, Mahwah APRIL 6 Vehicle Technology and Trends 2016 LKQ Corp., Lakewood Plastic and Composite Repair CollisionMax, Pennsauken APRIL 7 Matching the Repair to the Team Virtual Classroom APRIL 11 Problem Solving for Workflow Changes Virtual Classroom APRIL 12 overview of Cycle Time improvements for the Collision Repair Process Reliable Automotive Equipment, Belford APRIL 13 overview of Cycle Time improvements for the Collision Repair Process CollisionMax, Pennsauken Measuring Virtual Classroom Suspension Systems Virtual Classroom APRIL 14 Automotive Foams MGM Auto Body Supply, Hawthorne Corrosion Protection Reliable Automotive Equipment, Belford APRIL 18 Measuring Virtual Classroom

APRIL 25 Adhesive Bonding Keystone Automotive, Palmyra Automotive Foams Keystone Automotive, Palmyra APRIL 26 Wheel Alignment and Diagnostic Angles Reliable Automotive Equipment, Belford Corrosion Protection Keystone Automotive, Palmyra Vehicle Technology and Trends 2016 Keystone Automotive, Palmyra Waterborne Products, Systems and Application Virtual Classroom Rack and Pinion and Parallelogram Steering Systems Virtual Classroom APRIL 27 Structural Straightening Steel Reliable Automotive Equipment, Belford Aluminum Exterior Panel Repair and Replacement CollisionMax, Pennsauken 2015 Ford F-150 Structural Repair Training Course Keystone Automotive, Palmyra APRIL 28 Automotive Foams Reliable Automotive Equipment, Belford Plastic and Composite Repair Keystone Automotive, Palmyra Hazardous Materials, Personal Safety and Refinish Safety Keystone Automotive, Palmyra Steering and Suspension Damage Analysis Virtual Classroom APRIL 29 Replacement of Steel unitized Structures Keystone Automotive, Palmyra For more information, visit www.i-car.com

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New Jersey Automotive | April 2016 | 23

LEGAL PERSPECTIVE

by Mitchell Portnoi, Esq.

DIMINISHED VALUE IN NEW JERSEY – 2016 After being introduced to Diminished Value (DV) in the late 1990s by an out-of-state attorney and AASP/NJ Executive Director Charles Bryant, I began trying these cases in the various County Courts in central and northern New Jersey. The County Special Civil Part Judges generally met these cases with some incredulity and disdain for a variety of reasons. For one, they had never seen a DV case before. Secondly, they were concerned that if they ruled in favor of the aggrieved party, they would be seeing 20 of these cases on their docket by the following Monday. After all, the cases are generally based on loss of “inherent value,” or the perceived loss in value to the purchaser of a vehicle involved

24 | New Jersey Automotive | April 2016

in a prior loss. Very frequently, the plaintiff in a DV case has not sold the vehicle, as he or she cannot afford to take the loss. Therefore, the plaintiff brings the suit while still owning the car. As a result, the easy “out” for a judge is to rule that the plaintiff’s loss is “speculative” – that is, he or she has not yet realized the loss. (In fact, the plaintiff may never realize such a loss if the car is never sold, or if the car is owned for such a period of time that its value naturally depreciates to the point where the loss is “de minimis.”)

I have won cases in court, and I have lost cases in court. The Special Civil Part is the jurisdictional court where values are up to $15,000.

Therefore, most of these cases are

tried in Special Civil Part with just a judge – and not a jury – making a decision. In order to request a jury, the process is significantly more time-consuming and generally not worth the expense. Therefore, it is vitally important to convince a judge that these cases are meritorious and that DV losses are real and significant for the plaintiff.

Last month, an article appeared in the New Jersey Law Journal on DV. It was written by a South Jersey attorney who had essentially run across a DV claim from one of his existing clients.

Hopefully, his article will bring an awareness to judges across this state that these losses are real and that “inherent loss” to a vehicle is as much an out-ofpocket loss as a future wage loss is to an injured plaintiff.

For more information on Diminished Value cases or to discuss and refer cases to an experienced DV litigator, please contact the firm of Post Polak Goodsell & Strauchler at (973) 228-9900.

We also handle cases of significant personal injury and death due to negligence.

NJA

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www.fiatofspringfieldnewjersey.com New Jersey Automotive | April 2016 | 25

26 | New Jersey Automotive | April 2016

New Jersey Automotive | April 2016 | 27

WHEEL COLLISION CENTER:

VENDOR SPOTLIGHT

by Joel Gausten

WHEEL REMANUFACTURING

DONE RIGHT Nationally recognized with a nearly $2 million wheel inventory, Wheel Collision Center in Bath, PA has been in the business of selling, refinishing and repairing alloy wheels since 1990. Thousands of refinished and used factory alloy wheels (including many high-end and hard-to-get wheels) from 1980 through 2016 models are available for sale or exchange through the company, while aftermarket or outof-stock factory wheels can often be repaired or located. Additional services include custom wheel polishing, painting, powder coating and chrome plating services.

Considering the company’s skills and services, it comes as little surprise that Wheel Collision Center is enjoying an especially active 2016 – despite the fact that the most recent winter was lighter than usual.

“Our phones are always lit up,” offers auto industry veteran and Cornell University graduate

28 | New Jersey Automotive | April 2016

Daryl Robbins, who founded Wheel Collision Center with George Herschman. “Even without a severe winter, we’ve been exceptionally busy the first half of this year.”

Wheel Collision Center, incorporated in 1990, was a pioneer in the development of a repair process for straightening bent aluminum wheels. Their presence in the industry has demonstrated that wheel restoration can have a legitimate place in the repair process.

“It’s gone from nobody knowing that a wheel could be repaired properly or safely to a point where it’s more of a common occurrence,” explains Robbins. “That being said, the level of propriety or professionalism in obtaining a remanufactured wheel varies broadly among wheel repair individuals and companies. Mobile wheel repair, for example, is quick and convenient, but the quality of

2014-2016 Toyota Highlander Limited 19” Satin Chrome Clad Wheel

2014-2015 Mercedes C63 AMG 19” Machine/Silver Front Wheel

Wheel Collision Center Founder Daryl Robbins

the materials and workmanship may not be wonderful. Although the niche has grown, that doesn’t mean that everyone is doing it right.”

One way that Wheel Collision Center adds value is by offering overnight services for wheel straightening and welding, whereas repair/refinish typically requires two to three days.

“We can pick up bent or cracked wheels and bring them back the next day,” Robbins says. “Our customers who use that service really love it.

“If wheels have multiple cracks, we typically won’t repair them,” he adds.

“We can weld a wheel with two cracks as easily as we can weld the wheel with one crack, but we believe that if the metal is fatigued to the extent that it’s beginning to crack in multiple places, it may continue to crack down the road even if we repair it.”

Throughout their 25-plus years in business, Wheel Collision Center has maintained a strong presence in the New Jersey collision repair community.

This includes ongoing participation in AASP/NJ’s annual NORTHEAST® Automotive Services Show. Despite his enterprise being based in Pennsylvania, Robbins believes they are a local supplier at heart.

“We’re 15-20 minutes over the state border, but we consider ourselves part of the New Jersey business climate,” he says. “By being at the show, we can get to know some of the people who can use our service and help them understand that we have drivers who run through New Jersey every day. To us, that’s part of our backyard.”

At a time when repairers need quality services faster than ever, Robbins and Wheel Collision Center look forward to earning new and continued business by providing unmatched quality to shops in the Garden State and beyond.

“We work very hard to be experts in wheel repair, refinishing and sales, knowing that our professionalism can make our customers’ lives easier,” he says. “In fact, we work as hard on our customer service as we do on the quality of our wheels.”

For more information on Wheel Collision Center, please visit wheel collision.com or call (800) 292-RIMS (7467).

NJA

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2016 SETS A NEW STANDARD:

AASP/NJ CELEBRATES RECORD-BREAKING SHOW W INcREdIblE?

asn’t NORTHEAST 2016

On March 18-20, AASP/NJ welcomed the largest gathering of automotive professionals ever assembled in NORTHEAST Automotive Services Show history for the unforgettable 39th installment of the association’s flagship event.

From a jam-packed show floor to the biggest slate of seminars and presentations ever found at a regional show, NORTHEAST 2016 delivered nothing but excitement.

An incredible NORTHEAST experience is nothing new to industry mainstay Metropolitan Car-o-liner, an exhibitor at the show since the very beginning.

“It’s always a great place to see customers and prospects and actually let people see and experience the different types of equipment and solutions that we have to offer,” says President Dave Demarest, Jr. “Even with different technologies to communicate or stay in contact with customers, at the end of the day it’s always good to go face-to-face and shake the hands of those who have become more successful by using some of our solutions, and meet other prospects as well.”

32 | New Jersey Automotive | April 2016

Story by Joel Gausten

In addition to boasting a prominent display on the show floor, Metropolitan Car-o-liner sponsored a special Saturday morning training course, “Increase Profits, Lower Cycle Time/Supplements with Triage Estimating,” hosted by Larry Montanez of P&L Consultants.

Positive interactions between vendors and attendees fueled NORTHEAST throughout the threeday affair.

“I think the attendance was a lot better than in years past,” notes Gary Schaberg of Chief distributor Crashmax Equipment, whose area saw high attendee traffic all three days of the show (a feat helped along by the inclusion of Globaljig for the first time at NORTHEAST).

“There was a good, solid group of prospects; people were there for learning about what information we can provide and what’s changing in the industry.”

In addition to recently becoming a member of AASP/NJ, Access Commercial Capital made its official NORTHEAST debut in 2016.

“We met a lot of people and vendors, and we’ve had a lot of encouraging results,” says Access Commercial Capital Partner Edward P. Kaye.

Looking ahead, Kaye hopes to build long-lasting relationships

within the AASP/NJ community.

“To really be able to help customers, you have to participate in the association,” he says. “The association really helped us greatly by referring us to other shop owners and other good vendors, and they’ve been extremely supportive of us as a new member. We appreciate everything the association is doing.”

NORTHEAST 2016 was a special time for the folks at Albert Kemperle, Inc., who made their debut appearance at the show an important part of a year-long celebration of their 75th anniversary. On the show floor, Technical Service Manager David Green was able to inform attendees of Albert Kemperle’s ongoing partnerships with various companies producing equipment that help shops maintain OEM certifications.

“Since we are celebrating our 75th anniversary, we thought it would be a great opportunity to say ‘thank you’ to the many customers we do business with in the Northeast,” he says.

“It was nice to see so

For exclusive video coverage of NORTHEAST 2016, please visit youtube.com/aaspnjnortheast Photos Š John Argueta / Jargapix Photography

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many customers; we saw people from as far north as Maine and Rhode Island and as far south as Delaware.

We also wanted to showcase some of the different ways we can help our customers grow and be more efficient through different products and equipment. Our partners like 3D, Festool, Car Bench, Tecna and Cebora were all in attendance to answer any questions our customers may have had with regards to their needs. With all of these OEM approval programs, it can be confusing for a shop owner; we want to be able to assist them any way we can.

“This weekend was the most packed I have seen the show in a long time,” he adds. “It was nice to see so many people from our industry in one place. The speakers and the topics were all on point with the changes going on in the industry. I know that was part of the reason for the large crowds. Overall, it was a great show!”

Ford also had a considerable footprint at NORTHEAST 2016, with Collision Marketing Manager Mark Mandl participating in “Body Shop Certification and You: An OEM Panel Discussion” on March 19 and exhibiting from the company’s sizable booth throughout the weekend.

“It’s been a constant, steady flow of shop owners and technicians with lots of great questions,” Mandl told New Jersey Automotive during NORTHEAST 2016’s final day. “It’s always good to be here, just because I get to spend a lot more time talking to shop owners and people working on the car on a one-to-one basis.”

Ford’s ongoing participation in the show is one of many ways that the manufacturer is maintaining its industry outreach as the aluminum-intensive F-150 continues to hit America’s highways. Ford Senior Engineer Gerry Bonanni presented informative seminars on F-150 repair at various times throughout the weekend, while Ford representatives answered questions and addressed concerns from their floor display. Mandl was grateful that NORTHEAST provided a perfect stage for these crucial interactions to take place.

“We take opportunities to have less middlemen in between and tell

36 | New Jersey Automotive | April 2016

Nick Mattera/Innovative Solutions and Technology: “I couldn’t come up for air the whole show! The booth was constantly busy with technicians and shop owners. Everyone is looking for answers on aluminum-intensive and high-strength steel-intensive vehicles; shops are getting educated on what the needs of the future will be for collision repair. This year, to highlight silicon bronze and aluminum MIG welding, we brought in three live weld stations; the show had so much action that all three welders were being used all weekend long. It was amazing to be a distributor and look at the interest that is out there.”

SHOPS FIGHT BACK: Leadership Meeting Explores Legal Success & Stress

Shops are no longer taking abuse by the insurance industry lying down.

This was the takeaway from a speAASP/NJ's Charles Bryant (left) cial March 18 presentation by AASP/NJ detailed some members' recent Executive Director Charles Bryant during efforts in the court system. the 2016 East Coast Resolution Forum & Leadership Meeting at the Meadowlands Exposition Center in Secaucus. Co-hosted by AASP/NJ and SCRS and held prior to the start of NORTHEAST 2016, the afternoon gathering allowed Bryant and representatives from state associations across the country an opportunity to provide updates on their groups’ various activities in support of collision repairers and the consumers they serve.

For Bryant, informing Forum attendees of actions in the Garden State meant painting an intriguing picture of how some AASP/NJ members are taking the battle for proper reimbursement straight to the legal system. He detailed a recent case where a shop sued an insurer for payments and ended up drastically impacting the carrier’s Labor Rate structure in the process.

“The insurance company almost tripled its rates on one particular car and doubled it for quite a few other cars that had restricted parts on them,” he said.

However, Bryant explained that the insurer stipulated that it would only pay these new rates if the shop had made an investment in the equipment and certification to repair the particular vehicles on the list. The Ford F-150 was one of the vehicles that had its rates approximately doubled.

Despite the shop’s diligence in fulfilling these requirements, the insurer decided after a year that it would no longer pay that rate because Ford failed to restrict the parts on the F-150. After putting considerable pressure on the insurer with Bryant’s assistance, the company eventually relented and agreed to pay the shop two-thirds of the elevated rate moving forward.

Like a growing number of repair professionals throughout the industry, another AASP/NJ member is actively working to address insurer payment issues by utilizing the Assignment of Proceeds.

“I believe he sues on every job that goes through the shop,” Bryant said.

“What seems to be happening is, just before they go to court, [the insurers] settle.

They do not want this issue going to a court of law.”

Despite the shop owner’s success in court, Bryant noted that this member has had to face considerable obstacles as a result of his fight against insurers, including ongoing site visits by State of New Jersey officials.

“He’s had six visits from the fraud department,” Bryant says. “He never had a problem before; all of a sudden, it was one [visit] after another.”

While these investigations have yet to reveal anything damning against the shop, it serves as an example of how far the opposition is willing to go to prevent repairers from pursuing what they deserve.

“They are fighting and trying to do everything they can do to cripple the guy,” he shared. “I hate to see it happen, but I can tell you that he’s either going to win or die. He’s really standing strong on this.”

While the path to securing a long victory is difficult at times, Bryant made his feelings known that it might be the best option repairers have in today’s collision repair field.

“After being in the industry for many years, I don’t think the Labor Rate is ever going to get worked out between the auto body industry and the insurance industry outside of the court of law,” he said.

NJA

Seminar and event photo coverage courtesy of Joel Gausten & Jargapix Photography

TODAY’S REPAIRS: Myths, Realities and the Need for Certification If there was one overriding message heard at NORTHEAST 2016, it was that every repair facility working in today’s industry must perform work based on manufacturers’ guidelines.

During “AASP/NJ Presents: Advanced Material Repair in 2016 & Beyond” on March 18, industry experts Larry Montanez (P&L Consultants) and Dave Gruskos (Reliable Automotive Equipment) both stressed to attendees that repairing a vehicle without first gaining access to the correct procedures and repair information is inexcusable.

Larry Montanez (left) and Dave Gruskos offered straight talk.

“You’ve got to know what you’re doing; you have to have the manufacturers’ procedures in your hand,” Gruskos said. “If you can’t get that in your hand and live up to it, don’t touch the car.

Know when to say no and take it down the road to the experts, or you will end up buying the car.”

To offer a real-world example of Gruskos’ position, Montanez explained that although he is currently certified by Audi, Porsche and Mercedes-Benz and trained by BMW, he still knows when to step aside.

“I’m not Tesla-certified,” he shared.

“Well, guess what? If we get a Tesla in, I can’t repair it. Just because you can fix one car doesn’t mean you can fix another.”

Addressing one of the industry’s most common misconceptions, Doug Richman of Kaiser Aluminum/the Aluminum Association noted that the most talked-about material of 2016 is far from new.

“There are a lot of people [who say], ‘Aluminum is all-new in the auto industry,’” he observed. “Well, I’m here to tell

38 | New Jersey Automotive | April 2016

you that it’s only been heavily in the auto industry for about 100 years. Some of the first automobiles ever built were aluminum-intensive, and it’s been that way ever since.”

The OEMs’ growing presence in the independent repair industry was explored at length during “Body Shop Certification and You: An OEM Panel Discussion” on March 19. Moderated by Aaron Clark of Assured Performance Network, the discussion featured insights from Mark Allen (Audi), Mark Zoba (Nissan), Gary Ledoux (American Honda), Brian Wayne (Fiat Chrysler Automobiles) and Mark Mandl (Ford Motor Company) on why their respective companies launched their individual body shop certification programs.

“The program is about customer retention and repairing the car the right way back to crashworthiness and quality...It’s not about wholesaling parts,” Allen said. “That’s a nice thing that happens and a natural byproduct of the program, but it’s really about taking care of that customer as if they were at our own dealership.”

“Unfortunately, the [OEMs] for a while there said, ‘It’s not our problem. It’s not marketable; it’s not our issue. Talk to your insurance company,’” noted Zoba.

“Over time, we found that this was having an impact on our owners. For owner retention and making sure that our owners were taken care of, we realized that we had to take an active role in the repair process.”

For American Honda, who officially launched its ProFirst Certified body

shop program at last year’s NORTHEAST, helping independent shops achieve certification enables the company to ensure a better experience for legions of loyal drivers.

“We want to make sure that the customer has a good experience when they go to a body shop,” expressed Ledoux.

“Our cars are getting more sophisticated and technologically advanced, and that requires more skills, training and information to fix them right.”

“We probably have less than five percent of our dealers that actually have a working body shop,” added Wayne regarding Fiat Chrysler’s interest in shop certification. “Clearly, that’s not enough to take care of our customers; we had to turn to you guys for help...We just want to make sure that when we return the vehicle to the customer – whether it’s [from] one of our dealerships or you guys out there – it’s as close to preaccident condition as possible.”

According to Mandl, Ford’s jump into developing a repair network stemmed from the need to have professional operations with the skills needed to repair the aluminum-intensive Ford F150.

“We’re supporting [consumers] throughout every step of their ownership cycle...If we’re giving high-quality repairs, you’re going to have consumers who will be happier with their vehicles and likely to stay with our brand,” he said.

NJA

A special Saturday morning panel discussion addressed the growth of OEM certification programs.

Gary Ledoux/American Honda: “Saturday traffic was awesome! It was terrific. I couldn’t believe how many people were here.”

people, ‘This is the person who is working on repair procedures; this is the person doing the actual repair,’” he says. “We continue to have really good attendance at all those training sessions, and we continue to have more requests for them now that the vehicle has been out for a year.”

After exhibiting at NORTHEAST for years in support of its Wanda brand, AkzoNobel saw the 2016 installment as an opportunity to display and discuss its entire portfolio of products.

Not surprisingly, this addition paid off in fantastic ways.

“It’s been great; the traffic flow has been wonderful,” observed Sr. Marketing Communication Specialist Kristine Muscedere from the NORTHEAST floor. “There are really good conversations being had, and people are really engaged and interested in what the industry has to offer.”

In Muscedere’s mind, the Meadowlands Exposition Center is the ideal place to introduce prospective and existing customers to AkzoNobel’s many offerings, with highlights being its business services offering and firsttime right digital color process.

“It’s really important for AkzoNobel to be at the show to support our portfolio of brands and color and business offerings, especially in an area with such a high concentration of repair facilities,” she said. “It gives us a great location to have these conversations with body shop owners, managers and technicians.”

Looking back at his company’s 39th appearance at NORTHEAST, Guido Pippa of Accudraft credits the show’s “outstanding” attendance as the key incentive to return every March.

“NORTHEAST really does a great job of bringing people out from the local market,” he says. “Year in and year out, we’re always impressed with what they do, how many people actually come out and how many serious buyers come to the show. Geographically, it’s definitely a great thing for us.”

Away from the booth, Pippa and Accudraft’s JB Haydell appeared as special guests on The Car Doctor with host Ron Ananian during a special live broadcast from the show floor on New Jersey Automotive | April 2016 | 39

40 | New Jersey Automotive | April 2016

March 19. Prior to the start of NORTHEAST 2016, Accudraft hosted a special national distributors meeting at the Meadowlands Exposition Center for the second year. This most recent gathering lasted for three days and allowed Pippa and his crew to discuss and demonstrate equipment in an interactive setting.

“It’s such a perfect venue,” he says of NORTHEAST. “We have the equipment set up and running, where we wouldn’t have that at other meetings somewhere else. This year, we were able to put up one of our new PRO Series economic paint booths and actually show our distributors how it gets installed. This is an amazing opportunity.”

With over 30 years in the Northeast market, Sherwin-Williams has learned the value of maintaining personal relationships with its customer base. Once again, the company returned to the NORTHEAST Show to get valuable face time with the biggest audience in the region they’ll be exposed to at one time all year.

“We believe this is a good opportunity to get closer to our customers and let the industry know that we’re engaged,” offers Sherwin-Williams Automotive NY/NJ Area Sales Manager Carmine Mirtuono. “I thought last year’s show was one of the best ones that we’ve been a part of, but I’d say this year surpassed that.”

Sherwin-Williams’ support of NORTHEAST 2016 extended to its sponsorship of “Competing with the Talking Car - Virtual Steering,” a thought-provoking Saturday seminar presented by Steve Feltovich that explored how various emerging technologies and vehicle changes will directly impact collision repairers and their customers.

“For the shops that are going to be more progressive and interested in investing in the training, tools and equipment for the future, this is something that has to be talked about now,” explains Sherwin-Williams Global Product Manager Christopher Hill. “In the next three to six years, we’re going to see an extreme shift in the way cars and estimates are written after a collision.”

While he expanded his booth for 2016 in anticipation of heavy traffic,

Nick Halliday/Nucar:

“AASP/NJ does a great job; they have a great association that’s getting stronger every year. They just do a great job of getting new vendors and people in here every year. We know we’re going to be here no matter what.”

The NORTHEAST Demo Area saw a constant stream of attendees and speakers throughout the weekend.

While the show floor and seminar rooms at NORTHEAST 2016 offered a world of networking and educational opportunities, some of the most engaging discussions were held at the Demo Area of the Meadowlands Exposition Center. Presentations held throughout the weekend included “Estimating Following OEM Guidelines” and “Effective Training for Shops” (presented by veteran industry instructor Tony Nethery – the country’s most active I-CAR instructor - and sponsored by the Refinish Distributors Alliance [RDA]), “Photo Estimating Comes to the Northeast” (moderated by Kristen Felder of Collision Hub, with participation from Charles Bryant of AASP/NJ, Larry Montanez of P&L Consultants and CJ

RECAP

DEMO AREA

Przybyl of Snapsheet), “OEM Collision Repair Procedures vs. Industry Standards: A 2016 Update” (presented by Larry Montanez and facilitated by Collision Hub) and “2015 Ford F-150 Aluminum Repair Information” (presented

by Gerry Bonanni of Ford Motor Company). From exploring controversial changes to how insurers want to receive and process estimates to providing repair information on the nation’s top aluminum-intensive vehicle, these sessions drew a full room all three days, with many floor attendees gathering outside the packed room to take in what these industry experts had to say about the current state of the collision business.

NJA

New Jersey Automotive | April 2016 | 41

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No Excuse for DOING IT WRONG Even if you started in the auto body industry as recently as five years ago, you certainly know that what’s happening with technology today is vastly different than what was found in cars when you earned your first paycheck in the field. These days, there is very little room for human or mechanical error in the collision repair process. Either you know what you’re doing (and have the right equipment to help you do it) or you need to get trained now on how to do it.

Otherwise, the time you have left in this industry Jim Mickle of GM might be shorter than you realize. During his March 18 structural repair seminar facilitated by Flemington Car & Truck Country, Jim Mickle of General Motors made it abundantly clear that precision is key if you want a car to leave your facility in safe (and potentially life-saving) condition.

“Everything that we’re building today is much tighter as far as the tolerance goes [and] how much room you could have for the hood [and] for the doors,” he said. “It’s less than three millimeters in some cases, so our measurements are going to be important to make sure we get that car back to its Peter Fryzel of I-CAR correct situation.”

“If a manufacturer has a sectioning procedure, then follow that,” noted I-CAR instructor Peter Fryzel during “2015 Ford F-150 Structural Repair Training” on March 19. “Sectioning procedures, if permitted, should be followed [to] vehicle makers’ service information. We take it for granted a lot of times when repairing cars, but service information is really the most important thing that we can obtain.”

Fryzel’s point was echoed when P&L Consultants’ always-outspoken Larry Montanez started off the second day of the show bright and early with the Metropolitan Car-o-liner-sponsored “Increase Profits, Lower Cycle Time / Supplements with Triage Estimating.” Urging repairers to implement proper measuring systems in their businesses, he used an example of how most people would run a scan on their laptop if they dropped it from even a very short distance. Now, imagine what one of today’s sophisticated cars needs to have done to it after a collision.

As Montanez said, “You’re going to take 60 computers and apply 40,000 to 50,000 pounds of force at 30 miles an hour.”

Naturally, there is an often-considerable cost to measuring equipment of this nature. What if a shop is simply not in the position to part with that much cash?

“Maybe you should open a hot dog stand, because you can’t be killing people or putting people’s lives at risk because you don’t have the money.”

It’s hard to argue with that.

NJA

Larry Montanez during his Saturday morning seminar.

Rick Weber/Maxon Mazda-Hyundai: “Friday’s a cool night; it’s a fun atmosphere.

We don’t always get a chance to see our customers throughout the year, but here they are walking by us at the show. I like being here and being able to say hello and see people and thank them for their business.”

Keith Egan of the Collision Equipment Company was still completely blown away by how much attention his display received at this most recent NORTHEAST. “We had a fantastic show this year!” he says. “In fact, our phones have been ringing off the hook every day since we got back.”

Egan, who expects to do six-figure business as a result of sales generated through the show, says that a positive experience was shared by everyone who worked to represent his company throughout the event.

“I take my team to dinner every year as a thank you for giving up the weekend to do the show,” he says.

“But this year, it wasn’t a thank you; it was a celebration. We’re going to expand again next year.”

ProLine Tools & Supply hit NORTHEAST for the first time this year.

Not surprisingly, being at the Secaucus show was everything the company hoped it would be.

“We got quite a few sales, and we got a lot of people interested,” shared Russ Parks, ProLine’s vice president of sales and marketing. “At [NORTHEAST], we had a couple of customers who’ve bought some of [our] prototypes who love it and use it two-three times a day.”

After participating in NORTHEAST for 25 years, Axalta Business Development Manager James A. Powell still looks forward to exhibiting at the region’s largest event. cover story continues on page 59 New Jersey Automotive | April 2016 | 43

44 | New Jersey Automotive | April 2016

The Connected Consumer Tsunami

Photos from top:

The Car Doctor, Ron Ananian (right), interviewed industry representatives like Ford’s Gerry Bonanni (center) and AASP/NJ President Jeff McDowell (left).

American Honda Motor Co.'s Gary Ledoux spoke at the company's inaugural ProFirst Lunch & Learn.

Keith Manich of the Automotive Training Institute brought to light the benefits of standard operating procedures.

As OEMs are being tasked with creating automobiles with lighter material, they are also making considerable changes to vehicle construction and technologies.

Aluminum expert The use of ultra high-strength steels and Doug Richman carbon fibers is just a small part of what I-CAR calls the “technical tsunami” running through the industry.

Presented at NORTHEAST 2016 by I-CAR instructor Mike Bonsanto, “Vehicle Technology & Trends 2016” provided technicians with an inside view of the changes that will soon be commonplace in body shops across the country. Attendees left the morning session with a greater understanding of the collision repair implications of new vehicle features and how to perform complete, safe and quality repairs. A similar goal was achieved during “Aluminum Industry and I-CAR Join Forces to Address Collision Industry Knowledge,” which saw Doug Richman and Jim Dickson of the Aluminum Transportation Group (ATG) discuss how the aluminum industry has teamed up with I-CAR to arm the collision industry with the know-how necessary to make well-informed decisions on automotive aluminum repairs.

While it is important for techs to focus on what the car is made out of, it’s equally crucial to pay attention to the technologies driving a vehicle’s programming. During the “Competing with the Talking Car – Virtual Steering” seminar presented by Sherwin-Williams’ Steve Feltovich, attendees learned that today’s car has the computing power of 20 personal computers, features about 100 lines of programming code and processes up to 25 Sherwin-Williams' gigabytes of data an hour. The connected Steve Feltovich car market is predicted to reach $98.4 billion by 2018, while autonomous, self-driving cars are likely to be commonplace by around 2025. Not surprisingly, these factors will have a huge impact on the repair field very soon. “‘The future’ is really about three to five years [away]; it’s that close,” Feltovich shared, later adding, “Where do you want to be in 36 months? You need to think about your strategy and plan where you position yourself and what you want to do.”

Naturally, all this talk of new technologies and training means little if a shop can’t attract and retain customers. During “The Customer Encounter,” Jody Gatchell of A&J Collision Center outlined ways that a repair facility can establish a memorable experience for a customer to better ensure that he or she returns to the business and tells others about it. As an example of how a business can have fun achieving this goal, he shared how customers who pick up their vehicles at his facility are encouraged to let the staff know how well they did by hitting the “Gong of Success,” literally a gong set up in the shop that gets everyone’s attention. This unique Jody Gatchell, idea has led to a lighthearted atmosphere A&J Collision Center and great customer reactions.

“It gives the customers something to talk about when they leave,” he said. “Think of something that is memorable that someone can walk away with.”

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WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it.

You want the best part for a Toyota, but you’ve got to know when and how much.

Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”

ToyotaPartsAndService.com

©2014 Toyota Motor Sales, U.S.A., Inc.

For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Toyota of Hackensack 278 River Street, Hackensack, NJ 07601 Toll Free: 888-PARTS-28 Direct: 201-488-5756 Fax: 201-487-2618 paulc@toyotaofhackensack.com www.toyotaofhackensack.com

Glen Toyota 23-07 Maple Ave, Fair Lawn, NJ 07410 Toll Free: 800-444-1959 Direct: 201-791-1133 Fax: 201-703-5652 parts@glentoyota.com www.glentoyota.com

Toyota of Morristown 169 Ridgedale Ave, Morristown, NJ 07960 Toll Free: 800-541-1127 Fax: 973-292-0872 www.toyotaofmorristown.com

New Jersey Automotive | April 2016 | 47

FINALLY Getting Paid for What You Do Who wins when your company makes more money? If “my family and employees” is your answer, you’re absolutely right. But you know who else benefits when your collision repair facility gets more profitable? Other body shops!

In an effort to help shops build a stronger industry by getting paid for everything they do to perform safe and professional repairs, John Niechwiadowicz of QLC, Inc. and AASP/NJ Collision Chairman Jerry McNee of Ultimate Collision Repair presented “Maximize Your Estimates!” for NORTHEAST attendees on March 18 and 19. This highly interactive seminar included an in-class review and audit of an actual repair to illustrate the opportunities that are available on every estimate written in a shop.

Other highlights included a look at the eight processes shops must use to maximize their estimates and the top 10 operations that any successful shop can and should be getting paid for.

“Does anybody feel that out of a $1,500 or $2,500 estimate that they can’t find between $200 and $400 missing?” McNee asked attendees on March 19. “That’s what you should be challenging yourself to be looking for in an estimate.”

Above all, both presenters stressed that it is up to the shop owners – and nobody else – to determine how successful their businesses will ultimately be.

“Those of you who do not have a

management system are part of the problem,” McNee said. “Don’t take it personally, [but] there is no possible way that you will be able to figure this out on your own unless you’re an absolute genius...You’re never going to be able to fix something that you don’t know is broken. It’s just that simple.”

“If I’m the one who’s at $2,000 [and] someone else is at $1,000 for the same repair, who looks bad?” offered Niechwiadowicz. “But in reality, maybe you’re the one who has all those correct line items on there...There needs to be that sense of urgency for any kind of a change-in-management initiative to actually take hold.”

In addition to following the lessons featured in the “Maximize Your Estimates!” presentations, NORTHEAST attendees gained further insight into how to strengthen their financial status by attending the March 18/19 “Variable Rate System” seminars presented by Richard and Sam Valenzuela of National AutoBody Research (NABR).

As extensively discussed in the June 2015 and February 2016 issues of New Jersey Automotive (available at grecopublishing.com), the Variable Rate System is a proven and innovative technology to help repairers get paid what they’re worth and get paid more for the work they do.

“Getting paid for everything you do means all those not-included procedures and operations,” offered Sam. “Sometimes you hear, ‘We don’t pay for

that in your market.’ We don’t think that’s right. You do the work; you should get paid.”

“We think it’s insanity that the shops think that the insurer is the one that determines what rates they’re going to pay,” Richard added. “They don’t do that – you decide that.”

What kind of an impact has the Variable Rate System had on the New Jersey market? According to Richard, the Survey indicated a $6 increase in the average rates reported by Garden State users in the last 11 months.

“That’s really powerful information,” he said. “We look at surveys throughout the history of the collision industry, [and] we have not seen that kind of movement in the Labor Rates.”

With shops standing to gain so much by taking the time to explore the Variable Rate System, the Valenzuelas urged attendees to seize the opportunity to base their rates on genuine thirdparty data.

“The whole point of our company is to help you,” Richard stressed. “In order to help you, you’ve got to help us. You’ve got to give us the data that we’re asking for in the Surveys. We do all the market crunching, and we calculate all the market rates, and we do it in a way that is unlike anything you’ve ever seen.”

More information on the Variable Rate System is available at national autobodyresearch.com.

NJA

NORTHEAST attendees came out in force to learn from John Niechwiadowicz, AASP/NJ Collision Chairman Jerry McNee (right) and Sam Valenzuela (far right).

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Positioning Yourself for

GREATER PROFIT

Do you have what it takes to survive and thrive in an industry that’s changing every day? To help answer this question, renowned industry speaker Mike Anderson (Collision Advice) appeared at NORTHEAST 2016 to present two seminars with the goal of opening attendees’ minds to new perspectives and possibilities. Sponsored by Axalta Coating Systems, both classes drew standing-room-only crowds eager to experience Anderson’s enthusiastic take on the present and future of the auto body profession.

In “Positioning Yourself in the Collision Repair Industry” on March 18, Anderson examined how shops can focus on a “three-legged stool” to overcome common challenges in today’s marketplace.

Celebrated speaker Mike “For a business to be successful, Anderson brought two you need to make sure that you put unforgettable presentations equal parts of your attention as an owner to NORTHEAST 2016. or manager on three different areas,” he said. “The first is sales and marketing, the second is production and the third is finance and HR.” In order to succeed in these three areas, repair professionals also have to be aware of constant evolutions in how customers are led to certain businesses. Anderson spent considerable time on “virtual steering,” the phrase coined by Rick Tuuri of AudaExplore to explain rapidly developing technologies that will automatically connect a vehicle to a particular body shop.

“When there is an accident, that car would notify the OEM manufacturer...It’s OnStar on steroids,” he said. “That car would then contact the customer and say, ‘Mr. Jones, your vehicle notified us that you’ve been in an accident; are you okay?’”

Depending on the driver’s needs, the system would then dispatch police, emergency medical people, a tow truck…and a certified auto body shop if that driver doesn’t already have one in mind.

On March 19, Anderson presided over a special 90-minute seminar focusing on the results of the quarterly “Who Pays for What?” surveys conducted by Collision Advice and John Yoswick of CRASH Network.

Throughout the presentation, Anderson stressed that the results give clear insight into what shops charge for in the marketplace – and things their competitors are charging for that their facilities might not be at this time.

As Anderson said, “At the end of the day, I’m here to give you a thirdparty solution that says, ‘Here’s how often people get paid for it.’ When an insurance company comes in and says, ‘You’re the only one,’ you’ll have the ability to pull out a document and say, ‘No, I’m not!’”

Of course, a project of this nature means absolutely nothing to this industry if shops don’t participate. As the Survey results have revealed, the biggest reason why shops don’t get paid for certain things is because they are not demanding it.

“If we want to get paid for it, we have to ask for it,” Anderson said.

James A. Powell, Axalta’s business development manager for the Northeast region, tells New Jersey Automotive that his company was very pleased to bring Anderson to NORTHEAST 2016.

“Mike Anderson is very passionate and supportive of the industry,” he says. “He knows what’s happening in this ever-changing industry and tries to inform the body shops. We’re all learning every day, and he is leading the charge to make us better.”

NJA

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Carmine Mirtuono/Sherwin-Williams Automotive: “I thought last year's show was one of the best ones that we've been a part of. But I'd say this year surpassed that.�

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COVER STORY

continued from page 43 “It’s getting bigger and better every year, and more people are getting involved,” he says. “I’ve seen tags from Vermont, Maine and Pennsylvania. This is growing, and we’re glad we’re part of it.”

In addition to sponsoring two special events presented by Mike Anderson of Collision Advice (see page 53), Axalta took advantage of the exposure at NORTHEAST to promote its ProfitNet management system.

“We may have the greatest product in the world, but if we don’t have a spot to sell it and someone to buy it, it doesn’t mean anything,” shares Powell.

“We want to help shops’ cycle time and profitability, so they know we will be here at NORTHEAST for the long run.”

Of course, AASP/NJ was incredibly pleased with the turnout at the show.

“I think for the first time in my life, I am kind of speechless,” said AASP/NJ President Jeff McDowell. “Leading up to the show, we all had a good feeling; there was definitely a buzz. But to see it turn out like this? We couldn’t have predicted that in our wildest dreams.

There were lines of attendees out the door and down the steps waiting to get in. We had to add two additional registration counters just to get everyone in.

It was unbelivable. I’ve still got goosebumps.”

For AASP/NJ, this year’s success points to next year’s growth.

“We’ve dreamed about it. We’ve talked about it. Now, I think it might be time to do it,” McDowell says of the show’s expansion to a second level of the Meadowlands Exposition Center.

“We’ve proven that NORTHEAST is the top regional automotive services show in the country. And we’re still hungry.

We couldn’t be prouder.”

If you were there for NORTHEAST 2016, you’ll never forget it. If you weren’t there, then you know where you have to be next March. There’s no other experience like it.

NORTHEAST 2016 was presented with the generous support of the following sponsors: BASF (Platinum Show Sponsor); Ford (Gold Show Sponsor); Axalta Coating Systems (Attendee Prize Sponsor); American Honda (Attendee Bag Sponsor); Pro Spot International / Innovative Solutions & Technology (Attendee Lanyard Sponsor); Harbortouch (General Sponsor) NJA

ARANJ 2016 officers

President Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com

1st Vice President Ian Szoboszlay Ocean County Auto (732) 349-0332 ian@cosmosautoparts.com 2nd Vice President Darryl Carmen Lentini Auto Salvage (908) 782-6838 darryl@las-parts.com

3rd Vice President Joe Goodman Leesville Auto (732) 388-0783 joeg@leesvilleauto.com Executive Director Brian Snyder Auto Recyclers of NJ (609) 714-2339 brian@aranj.org

ARANJ 2016 Board of Directors Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net

Mike Yeager EL & M Auto (609) 561-2266 elandmauto@aol.com

Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net

Mike Caputo Lacey Used Auto Parts, Inc. (609) 693-0898 laceyautomike@aol.com Bert Witcraft Auto Express (856) 728-8367 Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com Harry Shover Porchtown Auto (856) 694-1555

Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com

ARANJ

The Automotive Recyclers Association of New Jersey

Wharton insurance Briefs An ARA Member

Replacement costs are provided on most property insurance policies. However, insurance companies are rarely contractually obligated to pay more than Actual Cash Value (ACV) as of the time of the loss unless – and until – the damaged or destroyed structure is actually repaired or replaced. For those policies that provide ACV, some courts have developed three primary rules to measure it: Market Value rule: The difference between the market value of the property before and after a loss.

broad Evidence rule: Where consideration is given to its replacement cost, market value, age, depreciation, income derived from its use and an opinion given by a qualified valuation expert.

Replacement cost less depreciation.

Under this most common rule, depreciation is deducted from the estimated cost to repair or replace the damaged property to determine its ACV. Although we always recommend you insure your property using replacement cost, there are times where an insurance company will only insure a property using ACV. Make sure your agent is covering you properly.

If you have any questions or concerns, please contact me.

Mario DeFilippis, AAi, Vice President (800) 221-0003 (ext. 1320) • (908) 513-8588 (cell) mdefilippis@whartoninsurance.com NJA

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SURF’S UP

NO BRAKES by Ron Ananian

Slow times are as big a part of this industry as the busy times; you can’t have one without the other. We are coming off a pretty mild winter here in the Northeast (no snow means no good for body shops and no radical weather changes means no good for mechanical shops). Coupling that with changing patterns of driving and the fact that it was only seven years ago when we were in the worst recession since the Great Depression, it’s easy to understand why we are all feeling the pain of spotty schedules and workloads. Plus, there are still too many players in the field scrambling for the few dollars it contains. I read somewhere that dealers are making a run towards doing bodywork again, so the lines of competition are going to get even more definition.

As for me (money aside), I’m okay with the slow cycles.

They give me a chance to take a breath and look at the shop, helping me identify where I can make it better, what I can throw out and how I can get home on time – which is like half a day sometimes – to see the family. Recently, I wrote about how I am on a technology kick this cycle. To date, I have replaced my Ford VCM I with the new VCM II scan tool, which is dealer-level and ready to go. We make it policy at the shop to use the new tools on different cars during the slow times so that we learn the “peccadilloes” of each tool. That way, when work starts piling up at the door, we are ready to make money and push cars out of our bays. I also have finally hooked up my new lab scope, the Honda scan tool, and am working on my J2534 box. Why am I telling you this? Partly because we are all in the same boat, but also because slow times can teach you about the changes in the business and give you the chance to catch up on some training at a more relaxed pace. Last month, I sat through a great seminar courtesy of Buy-Wise Auto Parts. Hosted by an instructor from Mechanics Education Associates (MEA), the class covered the basics and some of the not-so-basics about computer reflashing. The MEA boys do some very solid work and are clearly some of the best the industry has to offer. The audience reaction reflected it, but it was all the other reactions and conversations that taught me as much as the class.

Out of 125 technicians and shop owners in the room, every one of them had the same comments and conversations about the business. All are feeling the pain of the slow cycle; it seems that the business has changed overnight for mechanical shops. To paraphrase what they all said, the regular business is now comprised of brakes, tires, belts, sensors, coolant and trans service, with the occasional cabin and air filter replacement (along with selling

wiper blades). These are now the TOP-selling repairs.

Many check engine light-related issues are falling under manufacturer warranties – extended or otherwise – and the recalls we see on the nightly news are keeping cars inside dealer repair bays. This, coupled with the economic meltdown seven years ago, is creating a vacuum of repairs for shops today. Plus, cars are made better these days – period. So what can a shop do to survive? Great question.

Develop a plan B. You need a standby for the slow times. But I suspect many of you know this already. My plan B is most of what I told you already: Clean up, change up and set up. Get ready for the next boom that is coming along any time now. They happen like a wave; yes, you have to ride it. The boom comes along when you least expect it. That’s why a plan B is so important.

THE BOTTOM LINE IS...

Slow times are nothing new; if you’ve been in business more than five years, you can predict where the drop will come. And while this first quarter of 2016 was a bit of a surprise sleeper, know that the odds are in your favor and realize that the next surge is one day closer. It was funny to listen to the guys in that room at class that night. The techs around me were stunned about the requirements of flashing (hardware, software, overall cost, etc.). What many of them didn’t see or perhaps didn’t realize was that flashing is that wave we’ve been waiting for. The fact that none of them mentioned it as a top-selling item shows that so few of them do it in-house. They send it out for many reasons.

ME? I like to ride the wave; surfing from one to the next has taught me balance and strength. It can do the same for you if you let it. Don’t look at the slow times as bad. Consider it to be normal for our industry, and think about surfing. Ride the wave. NJA

’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good mechanics aren’t expensive; they’re priceless.”

Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.

“The Car Doctor” can be heard LiVE in the New york market. Tune in Saturdays, 2-4pm on WRCR AM 1700 for new shows!

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ADVERTISERS’ INDEX Acme Nissan ........................................4

Glen Toyota ..........................................OBC

Post Polak ............................................24

Amato Agency ......................................22

Hyundai Group ......................................56

Princeton BMW ....................................55

Audi Group............................................34-35

JMK Saab/Fiat of Springfield..................25

Princeton MINI ......................................10

Auto Body Distributing Co. ....................40

Klean Frame..........................................28

Sherwin-Williams ..................................48

Axalta Coating Systems ........................6

Levittown Ford ......................................27

Subaru Group........................................60

BMW Group ..........................................20-21

Maxon Mazda........................................42

Subaru of Morristown ............................13

BMW of Springfield................................17

Maxon Hyundai......................................50

Town Motors ........................................46

Bridgewater Acura ................................54

Mazda Group ........................................31

Toyota Group ........................................47

Cadillac of Mahwah ..............................20

MINI Group............................................51

Toyota of Hackensack ............................IFC

Classic Audi ..........................................12

Mitsubishi Group ..................................44

Toyota of Morristown ............................13

Collision Equipment Company................11

Mopar Group ........................................18

Tri-State Luxury Collection ....................8-9

Clinton Acura ........................................IBC

NUCAR..................................................14-15

USI of North America ............................18

Empire Auto Parts..................................25

Paul Miller Audi ....................................52

Valtek....................................................66

Flemington Audi ....................................5

Phillipsburg-Easton Honda ....................IBC

VIP Honda ............................................54

Flemington Group..................................58

Porsche Group ......................................63

VW Group ............................................65

Fred Beans Parts ..................................61

PPG ......................................................3

Westbury Jeep Chrysler Dodge Ram SRT...26

Grand Prix Subaru ................................27

Polyvance..............................................62

Wheel Collision Center ..........................28

LET US TURN THEM AROUND!

Contact New Jersey Automotive Sales Director Alicia Figurelli

973.667.6922 / ALICIA@GRECOPUBLISHING.COM 66 | New Jersey Automotive | April 2016

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