Refining Your Website » Negotiating Tips » Human Resources
August 2014//Vol. 33 No.8
Building a Great Workplace Tips on how to make your shop a place employees enjoy.
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Inside
August August 2014
Vol. 33 No. 8
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ON THE COVER Building a Great Workplace How to make your shop a place where employees trust managers, enjoy coming to work and take pride in what they do.
FEATURES
38 Mastering HR MSO
Guidelines for creating a buttoned-up, uniform human resources department that reduces your exposure to liability.
48 Negotiations: A Strategic Approach BUSINESS
Taking a strategic approach to negotiations as opposed to looking at it as a contest to be won can reap many rewards.
SHOP TALK Editor’s Notes
8 10 Publisher’s Perspective 16 Clark’s Corner Web Presence Management 22
My car is back and better than ever! Oh deer part II. Where is trust today?
The rise, fall and rise again of aftermarket crash parts. There’s value in choosing a specialist who really knows SEO.
BODYSHOP BUSINESS (ISSN 0730-7241) (August 2014, Volume 33, Number 8): Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2014 Babcox Media, Inc. All Rights Reserved. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to BODYSHOP BUSINESS, P.O. Box 13260, Akron, OH 44334-3912. Member, BPA Worldwide
DEPARTMENTS Guess the Car ....................................................................................4 e-Buzz ..............................................................................................6 Industry Update ..............................................................................12 By the Numbers ..............................................................................84
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Guess
the Car
SOLVED! See the September issue for winner of Guess the Car #136.
Reader Contest! Win $50! What vehicle MODEL does this picture represent? Fax your guess to (330) 670-0874. Include name, title, shop name, city, state and phone number. Or submit your guess with our online contest form by visiting bodyshopbusiness.com/guessthecar. The winner will be randomly selected from correct entries and awarded $50. Entries must be received by Aug. 31, 2014. *Only one winner will be selected. Chances of winning are dependent upon the number of correct entries received. Employees of Babcox, industry manufacturers and BSB advertisers are not eligible to enter.
August 2014 | BodyShop Business
Eye-on = (Saturn) Ion
#135
#137
4
#136
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!
WINNER
Darrell Goad, manager, Hemingway’s Collision, Stonewall, La.
Sonic boom = (Chevrolet) Sonic
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e-Buzz
The latest online content from BodyShop Business July 7 — Well, what’s your take on this? Are these mannequins actually distracting, or should drivers pay more attention to the road?
Like • Comment • Share
: BodyShop Business Readers Group
Question for Facility Owners: Who Uses Social Media to Get Customers to Your Shop and Who Doesn’t? Tara Hanson
I’m trying to figure out if it’s worth my time to mess around with it. Thanks for your feedback in advance! – Tara Hanson It’s important to be there. It won’t generate business directly, but is a tremendous help with top of mind awareness. – James Sund James Sund
@BSBMagazine: @KaeserUSA is expanding its international headquarters in Germany:
They Said It On
bodyshopbusiness.com Louisiana Collision Repairers File Suit Against Multiple Insurers for Antitrust Violations Comment by Clay Bertrand: About time! I’ve said many times that, although a particular insurance company may not own your shop, they sure do run it. Maybe this is a step in the direction of finally leveling the playing field between all shops and insurance companies. Comment by Gordon Parker: I am fighting for the American dream. When I got in this, I thought I was all alone. Little did I know there were two or 300 other people as crazy as me or crazier. This is going to happen! There is no way I could’ve done it all alone, but I would have done it anyway. When Mosley and Gunner got into it, they thought they were all alone also. We all thought we were all alone. We are not all alone; we are joining hands and are going to bring down these beasts! The American dream will be back in America soon. The men with balls in the body shop industry are going to straighten out this country. Come join along with us or sit back and be left out in the cold. Comment by stopdrp.com: I think will see the snowball effect now. In 1999, we saw the Internet bubble pop. In 2008, we saw the real estate bubble pop. It’s now time for the corporate bubble to pop. Comment by erkru: Excellent news!
Find 1,000’s of BodyShop Business articles online at www.bodyshopbusiness.com 6
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Editor’s
Notes
Publisher
S. Scott Shriber, ext. 229 sshriber@babcox.com Editor
Jason Stahl, ext. 226 jstahl@babcox.com
It’s Back!
Associate Editor
uess what? My car ’s back, good as new! Well, some people might dispute that, stating that body shops can never actually return a vehicle to pre-accident condition because they can’t duplicate certain factory procedures. But…my Honda Civic looks great!
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As you recall, I hit a deer on June 7 and caused quite a bit of damage to my car. I walked away without a scratch, but the Civic sustained $6,000 of damage per the estimate at Nagy’s Collision Specialists in Doylestown, Ohio. I chose Nagy’s because Ron Nagy is a friend of mine, and I knew he’d do right by me. Plus, they’re Honda certified. Now, about that estimate. It was very thorough, accounting for every nut, bolt and clip. Frame setup and measure. Alignment. The works. I showed it to other shop owners and they agreed practically nothing was left out. Plus, everything was written OE. For these reasons,
Gina Kuzmick, ext. 244 gkuzmick@babcox.com Contributing Editors
Mitch Becker, Mark Clark, Mark Claypool, Erica Eversman, Tom Ferry, Curt Harler, Kristen Hampshire, Hank Nunn, Carl Wilson Graphic Designer
Lisa DiPaolo, ext. 281 ldipaolo@babcox.com Advertising Services
Kelly McAleese, ext. 284 kmcaleese@babcox.com Director of Circulation
I thought I would certainly face friction from my insurer, GEICO. But I didn’t. In fact, the manager at Nagy’s told me he waited three days for GEICO to reply about coming out to see the car before emailing them once again. The response? “Just run it through.” Wow! They didn’t even come out to see the car! After all the horror stories I’ve heard from you guys about customers getting steered and lowballed, I was shocked. They never tried to steer me, and they didn’t haggle about the estimate. I even got an OE radiator! Someone suggested, “Well, GEICO probably knew who you were!” I don’t know. But I was prepared for the worst, and ended up having a smooth experience.
Jason Stahl, Editor Email comments to jstahl@babcox.com
Pat Robinson, ext. 276 probinson@babcox.com Director of eMedia
Randy Loeser, ext. 285 rloeser@babcox.com Subscription Services
Ellen Mays, ext. 275 emays@babcox.com Tel: (330) 670-1234 Fax: (330) 670-0874 Website: bodyshopbusiness.com Corporate
Bill Babcox, President Gregory Cira, Vice President, Chief Financial Officer Beth Scheetz, Controller A limited number of complimentary subscriptions are available to those who qualify. Call (330) 670-1234, ext. 288, or fax us at (330) 6705335. Paid subscriptions are available for nonqualified subscribers at: U.S.: $69 for one year. Canada/Mexico: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via air mail: $129 for one year. Payable in advance in U.S. funds. Mail payment to BodyShop Business, P.O. Box 75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.
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Publisher’s
Perspective Where Is
Trust Today? ow many times a day do you hear it? “You have to trust me on this,” advertising claims of being a “trusted source,” and on and on. Trust is a word that’s used everywhere today. In fact, at the risk of being trite, I’d say it’s overused. It seems today that it’s more of a saying than a word with actual meaning. It used to be that when someone said, “You can trust that it will be done,” it got done. Completing the task was taken as a personal commitment and a reflection of the person who made the commitment’s integrity. I think this literal meaning of the word has been lost today.
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The 2014 edition of Webster’s defines trust as: “The belief that someone or something is reliable, good, honest, effective, etc.” In 1828, Noah Webster defined trust as: “Confidence; a reliance or resting of the mind on the integrity, veracity, justice, friendship or other sound principle of another person.” The differences in the old definition and new definition are subtle, but they’re there. The original version talks about integrity, justice and friendship. The current version relies on the phrase “etc.” to allow the reader to fill in what it means. In a way, Webster’s is trusting us to complete the thought. That seems a bit scary to me considering what goes on today. In business, there needs to be a certain element of trust. When we contract or agree to purchase a good or
service from someone, there’s an implied trust that commitments will be upheld on both sides and goods and services will be delivered and paid for. It all sounds simple until greed or dishonesty clouds the deal. I think greed is what drives most of the cloudiness. In today’s large, consolidated business entities, Wall Street plays a huge role in this trust stretching. There’s such intense pressure to deliver increasingly higher returns that good judgment gets in the way. Then, large corporate structure allows individuals to hide behind the veil of the corporation and, voilà! Dishonesty, truth stretching and trust stretching prevail. The lesson for business owners is: most of us repair vehicles one car at a time, and our business is a reflection of our relationship and commitment to our customers. How is your trust with your customers and suppliers? Can they count on you? What about your employees? In the end, the only real difference you or I can make is with our own integrity. I can assure you of one thing, though: if your customers and employees trust you, and your suppliers trust you as a business partner, you’ll be a more successful businessperson. Join the revolution, step out there and be trustworthy and trusted.
S. Scott Shriber, Publisher Email comments to sshriber@babcox.com
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Industry
Update
Church Brothers Collision Repair Raises $11,000 for Military Veterans ndianapolis-based Church Brothers Collision Repair raised $11,000 for military veterans through its inaugural car show. The event hosted 284 entries, with funds benefiting the Wounded Warrior Project. “We were expecting around 120 entries, and would have been thrilled with that number,” said Church Brothers Collision Repair Co-Owner Dan Hall. “Luckily, we were prepared for more, and were absolutely delighted with the actual turnout and the amount ultimately raised for the Wounded Warrior Project.” Every dollar from en-
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try fees, a raffle, bottled water sales and on-site contributions was earmarked for the cause, and Church Brothers
matched that amount dollar-for-dollar to bring funds raised to $11,000. A group of active duty Indiana National Guards-
men and women accepted a ceremonial check on behalf of the Wounded Warrior Project. Former NFL player Joe Staysniak, co-host of 1070 The Fan’s Grady & Big Joe Show, served as the event’s emcee. Indianapolis Motor Speedway historian Donald Davidson appeared for a conversation about this year’s Indianapolis 500 and fan meet-and-greets. On-site exhibiting organizations included the Indiana State Police, Indiana National Guard, Indiana Pacers, Meguiars Car Products and Volunteers of America Veteran Services, among others. “We’re going to be getting our car show committee together soon to discuss what worked well and what we can do even better,” said Hall.
ARA Applauds W.Va. Supreme Court’s Ruling on Salvage Parts he Automotive Recyclers Association (ARA) applauds the recent West Virginia Supreme Court of Appeals ruling that the state’s Automotive Crash Parts Act does not apply to the use of salvage/recycled OEM parts and as such affirms the use of
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salvage/recycled OEM crash parts in vehicle repairs when such repairs are negotiated by insurers within the year of the vehicle’s manufacture, or in the two succeeding years. The Court ruled the Crash Parts Act clearly intended to require disclosure and written consent
for only some, not all, replacement crash parts, and found that aftermarket crash parts and salvage/ recycled OEM crash parts are “diametrically different” products and not interchangeable in the context of the statute. Thus, the use of salvaged/recycled OEM
»| Industry Update |«
Louisiana Collision Repairers File Suit Against Multiple Insurers for Antitrust Violations By Jason Stahl n Tuesday, July 8, Louisiana collision repairers filed a lawsuit against multiple insurers for violation of federal antitrust guidelines. Louisiana is the sixth state in which repairers have filed a suit. Approximately 39 body shops are listed in the suit, with four to five more expected to join. Labor rate suppression, steering and failure to pay for procedures necessary for proper repairs are some of the other allegations leveled at roughly 35 insurance companies. “Louisiana in particular has a large number of body shops that have experienced a tremendous suppression of rates and everything that will be paid to a body shop for the work they perform, including labor rates and parts and materials,” said Allison Fry, attorney and direc-
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parts by Liberty Mutual and the collision repair shop did not violate the Crash Parts Act. The Court’s ruling brings several years of litigation to conclusion. In December 2011, the state of West Virginia Attorney General’s office filed a complaint and petition for injunction against Liberty Mutual and Greg Chandler’s Frame & Body LLC, alleging that the defendants violated the state’s
tor of litigation for Eaves Law Firm. “Several shops in Louisiana have experienced truly crushing steering. I don’t know if it’s the environment in Louisiana or a certain arrogance on the part of insurers, but they’re much more blatant in their statements to shop owners about what they will or will not pay and why. For instance, one shop reported that an adjuster told them flat-out that they will not pay by the P-pages unless it’s in their financial interest to do so. And that was the corporate directive: ‘If it works for us, pay the P-pages. If it doesn’t, we’re not paying them.’ “There is an exceptionally large body of highly motivated shop owners in Louisiana who have been pushed to the point where they have to take action. They’re very vocal, very involved and they very much want to see a change in the industry.”
Automotive Crash Parts Act and Consumer Credit and Protection Act by repairing new vehicles using salvage crash parts without obtaining the written consent of the motor vehicle owner at the time of the repair. The Crash Parts Act requires body shops and insurance companies to disclose to vehicle owners the use of certain replacement crash parts in repairs conducted within three years of the repaired vehi-
So far, other states besides Louisiana in which repairers have filed include Florida, Tennessee, Mississippi, Indiana and Utah. Fry said she expects repairers in 35 other states to file within the next few months, although there has been a slight delay due to a judicial panel hearing on multi-district litigation slated for July 31 in Kansas City. The panel will determine whether all the individual states’ cases can be consolidated for pretrial handling in one jurisdiction. “We did not ask for an oral argument because we felt the matter was so straightforward and clear that it was unnecessary to impose on the panel in that way,” Fry explained. “However, several of the defendant insurers did demand oral argument, so we will be appearing in the federal courthouse in Kansas City.”
cle’s original manufacture date, as well as written consent from the vehicle owner to use aftermarket crash parts and the distribution of a statutory notice to the owner that aftermarket crash parts have been used. “This ruling is a significant step forward for the professional automotive recycling industry and the increased utilization of genuine, recycled OEM parts,” said ARA CEO
Michael E. Wilson. “ARA applauds the West Virginia Supreme Court of Appeals for recognizing the value of recycled OEM parts to automotive consumers, collision repairers and insurance companies, and for supporting the definite role professional automotive recyclers serve in today’s automotive marketplace.” In a Jan. 3, 2012, letter to then-Attorney General Continued on pg. 56
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Clark’s
Corner
By Mark Clark
Rise, Fall and Rise Again of Aftermarket Crash Parts was recently with a group of younger industry folks who were discussing the use of non-OEM sheet metal. As you’re well aware, many insurers are now insisting that some percentage of crash parts used in repair are new, non-OEM parts. My impression in reading the various insurer score sheets is that 15 percent aftermarket parts is the average goal. Having been in our industry since 1970, I’ve been present for their rise, fall and rise again.
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Patch Panels » In the 1960s, there were no look-alike crash parts; the only alternative to new OEM or salvage OEM parts were patch panels. These were stamped steel panels that were “universal” in shape. You would buy an appropriately shaped stamping that the body shop cut and welded (or brazed) into place, primarily to repair rust damage. Dog-leg shaped, rocker panel shaped, wheel arch shaped and just plain flat sheet metal hunks were among the choices to fix rusted out cars. I worked summers for my dad and grandfather whose auto parts business also sold PBE items. As I type this article, I can still see two scars on my hands from loading and delivering those patch panels. Because they were casually stamped from heavy gauge sheet steel, the edges of the panels were sharp as knives. “Wear leather gloves,” other employees told me. Because I was 16 years old, I knew I was smart enough not to get cut. Right!
rust problem, too. Late 1960s and early 1970s GM pickup trucks had front fenders that rusted out every year – at least on the salt covered roads in the Midwest. At the time, our industry had a parts pricing structure called “wholesale comp,” which enabled everyone who touched the crash part to make good money. Typically, the body shop’s gross margin on new OEM American sheet metal was about 40 percent. In addition, the dealership that sold the part to the body shop made a healthy margin. As a result, the two annually replaced pickup fenders cost the consumer about $240 each. It might have been OK once, but the poor truck owner would have to do it again the next year. Some enterprising soul took a new GM truck fender to the Pacific Rim and found a local “manufacturer” to stamp out a part that looked close to the OEM version. These replacement parts still rusted out every year in the early ‘70s, but another one was only $75 instead of $240. As the copycat process became more and more common, it ultimately ended the wholesale comp pricing structure. Car manufacturers could no longer compete if everyone who handled the part made a fortune on it. I can remember my ’70s shop customers saying they wouldn’t work on Volkswagens because they could only make 20 percent gross on those parts and could make a full 40 percent on Chrysler, Ford and GM crash parts. Wholesale comp finally ended for good in the early 1980s.
Rust Problem » My recollection of the initial appearance of sheet metal stampings shaped “exactly” like the fenders was in response to a 16
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Fit Issues » Those initial aftermarket crash parts suffered from severe fit issues. The
»| Clark’s Corner |« flanges were often not correct, the side maker light holes were off, the tabs were in the wrong place, etc. It was those issues that were at the root of the famous aftermarket crash parts court case in Illinois. In 1998, a group of consumers sued their insurer for repairing their collision-damaged autos with substandard sheet metal parts. These folks claimed the insurer breached its promise to repair their damage with like, kind and quality parts that would restore their vehicle to preloss condition. Fearful that their customers would sue them, too, other insurers soon stopped requiring that shops use aftermarket crash parts. Needless to say, the insurer appealed that verdict. As the court cases ground on, many folks (me included) predicted the decision would be overturned. If the U.S. courts held that any non-OEM car part was insuffi-
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cient, it would put the entire aftermarket auto parts industry out of business. No Champion sparkplugs in your Ford, only Motorcraft plugs. A huge segment of the population (one in five people) had jobs with an auto industry tie. If only the car manufacturer could replace parts (they would be happy campers), but without competition, the car companies could charge whatever they wanted for the only possible legal replacement component. Use of aftermarket sheet metal fell to less than 5 percent of the auto body market immediately following the Illinois court’s decision and the many subsequent appeals. Once reversed, the industry’s use of non-OEM sheet metal once again rose to 15 percent of the crash parts market. Insurers continue to be interested because those look-alike parts are a lot cheaper than the factory components.
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In my experience, the body shop’s objections to those parts was twopart: first, the knock-off part was not an exact and correct copy of the OE part, and the extra labor time to move the incorrect tabs, cut or fill the maker light holes and generally modify the A/M part to fit suitably could not be included on their RO. Insurers wanted to pay only book flag times for the R&R operations. Second was the money issue. If the OEM part was $100 and the body shop made a 25 percent gross profit, they were ahead $25. If the aftermarket part was $70 and the shop made a 30 percent gross profit, they were ahead only $21, a big difference in shop net at the end of the year. Having built a couple of training programs about the aftermarket parts business, it’s my opinion that the quality of the non-OE crash parts has gotten considerably better. They
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»| Clark’s Corner |« fit much more like OE parts now. Body shops demanded it, and responsive vendors complied. The price differential continues to be an issue, of course. And at least one additional problem remains, I believe.
CAFE Standards » In an effort to meet Corporate Average Fuel Economy (CAFE) standards, automakers on every continent have made their engines smaller and more efficient, built unicoupe bodies instead of full perimeter frame vehicles and further reduced weight by using thinner gauges of sheet metal. By employing sophisticated metallurgy, they’ve even increased auto panels’ tensile strength while using lighter gauge, lighter weight, thinner sheet metal. High strength steel, high strength low-alloy steel and boron-infused steel all allow the vehicle to weigh less while still protecting the occu-
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pant. Witness Ford’s expanded use of lightweight aluminum to improve the gas mileage on their trucks as an ongoing effort to improve their CAFE with lighter metal panels. Unicoupe car construction, the three sheet metal box auto, is safer in virtually every collision than any full frame 1960s Ford Galaxie or Chevrolet Impala. But the occupant’s safety depends on the controlled collapse and energy absorption of the sheet metal boxes. The remaining question in my talks with the younger industry crowd about aftermarket sheet metal parts is the metallurgy involved. Is that look-alike part from China made from the same super sophisticated steel? Does it make a difference in the next collision?
Future Repairs » If your shop is in a DRP relationship with an insurer that demands that some percentage
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of their repairs be completed with non-OEM parts, will your reluctance to use them cause the insurer to choose another partner? Probably. Certainly not all vehicles currently have extra special high-strength steel parts. If future cars are all built with panels made from “unobtainium,” the Pacific Rim vendors will possibly make their look-alike panels from it, too. In the meantime, do what you must to deliver safe repairs to the consumer in a way that keeps the insurer (they pay for 90 percent of all collision repairs) happy. BSB Mark R. Clark is owner of Professional PBE Systems in Waterloo, Iowa. He’s a popular industry speaker and consultant and is celebrating his 26th year as a contributing editor to BodyShop Business.
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Web Presence
Management
By Mark Claypool
Taking It to
the Next Level ur new Web presence, social media and pay-per-click campaigns have taken our shop to the next level,” said Liz Lebantino, manager of Butch’s Auto Body & Paint, Inc. in Capitol Heights, Md. For over 35 years, Butch’s, a mid-size shop, has built a loyal customer base and existed primarily on word-of-mouth referrals. Like many others, as economic conditions changed throughout the mid- to late 2000s, Butch’s needed to do more to maintain and increase its market share. Liz tried local print ads, Yellow Pages and other avenues, but it wasn’t until she got online that things started to take a turn in a positive direction.
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Template Websites » Liz recalled how she approached things. “In late 2007, with the little Internet skills I had, I decided to create and design our company’s website using GoDaddy,” she said. “At that time, it was an easy, affordable way to get my ideas online to market Butch’s original website, which was “cookie-cutter” and not search-engine friendly.
the business. Three years later, we found an Internet marketing company for small businesses in the DMV area to manage our site. However, I came to realize that the website they created for us was not unique to us at all. It was the same exact template they created for other body shops in the area.” Liz had fallen prey to the cookie-cutter approach to having a website. While this approach may be easy and less expensive, it creates duplicate content across multiple sites, something search engines penalize you for by dropping your ranking potential. To check and see if your site is replicated elsewhere, use this tool: www.copyscape. com. Luckily for Liz, a loyal BodyShop Business reader, she read about duplicate content in one of my columns. “Around late 2012, I came across an informative, interesting column written by Mark Claypool and found that a template website was actually hurting our online potential,” said Liz. “It was then when I decided to talk to our shop owner, Eric Kalender. I was a bit apprehensive because he might think it would be an added expense to seek out a professional Web developer who caters to the automotive industry, especially when his business has been operating only by word-of-mouth for about 35 years. But, armed with information from this column and others, I was able to build a strong case for hiring a professional who knows what they’re doing. Eric agreed, and that’s what we did.”
True SEO » Now, with owner buy-in, Liz hired a firm that specializes in building sites for body shops, and she also made sure this developer understood true search engine 22
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»| Web Presence |« optimization (SEO). She recalled the process. “Prompted by the developer, we provided an overview of our business objectives and goals and answered a series of questions which got the process started. We chose a design and worked closely with the developer to create unique text for our new site. We were given access to a secure test site to view their progress throughout the design and development stages. This gave us the opportunity to express our likes and make changes along the way. They made sure that the final website matched our needs and taste. Then it went live. Before we knew it, our new website was showing up on all major search engines, including landing on the top of the first page.” Liz hit on a key factor here: hiring a specialist who really understands SEO. Building a website alone isn’t enough; it needs to be optimized so people searching for the services you provide – not for you by name, but for the actual services you offer – will have a chance to actually find you, ideally in the first page of search results. Initially, was ranking poorly in their hometown, county and Washington D.C. In their hometown, Butch’s was ranking as high as fourth on Google for the most often used search terms. They’re next door neighbors with Washington, D.C., but had zero rankings there. People in that area search by county, so rankings were important with that term, too. And, not shown here, they had zero rankings in any of their surrounding towns in Maryland. Nearly a year and a half later, they’re ranking much better. With all four of the top search terms the public uses, this shop’s new site now ranks No. 1 in their hometown of Capitol Heights on Google, they’ve seen improvements in their county and Washington, D.C. rankings and are Circle 24 for Reader Service
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Butch’s new website, fine-tuned by a specialist who really understands SEO.
now visible in their surrounding towns as well, including several page one rankings and several No. 1s as well. Liz and Eric are thrilled: “We’ve noticed a significant increase of business since working on our online Web presence. We’re getting a lot of Web inquiries and phone calls. We track everything with Google Analytics and have seen our Web stats increase dramatically. And since the site is in WordPress, we can make updates to the site ourselves.” Next month, I’ll share what Butch’s has done with social media and pay-per-click campaigns. The results have been dramatic. Stay tuned! BSB BSB Contributing Editor Mark Claypool has more than 30 years of experience in the fields of workforce development, apprenticeships, marketing and Web presence management with SkillsUSA, the I-CAR Education Foundation, Mentors at Work, VeriFacts Automotive and the NABC. He is the CEO of Optima Automotive (www. optimaautomotive.com), which provides website design, SEO services and social media management services.
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MONTHLY TECH
Performance has a new address
SPOTLIGHT
THE SLOW ADVANCE OF CARBON FIBER Carbon fiber has been hanging at the foot of the automotive industry bed for a long time. Traditionally reserved for exotic sports cars, the first mass-produced cars making extensive use of carbon fiber have arrived.
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irst it came to Formula 1, then to super cars and now BMW has become the first manufacturer to embrace the ultralight composite on a mass-produced series of models. The i3 city car became the first production model to use carbon fiber, with extensive use of the composite for the cockpit, body panels, roof, hood and seats. The BMW i8 sports car, coming out later this summer, will follow suit. And the new 7-series will also employ the composite extensively.
Speed
The bold move on behalf of BMW represents the first example of a mass-produced car using a carbon fiber cockpit, and one of the most extensive examples of carbon fiber
bodywork. There’s also word that Toyota and GM are working on carbon fiber options.
composite, consisting of interwoven carbon nano-fibers, may just be making its big breakthrough.
The ultralight composite is difficult to manufacture, and this has long been the prohibiting factor when it comes to its implementation. With more investment in manufacturing techniques, it has become substantially easier to produce carbon fiber inexpensively. New methods of molding and forging, combined with improved resin injection, are being developed across the globe. Carbon fiber may fall to just a third of its original price by the end of this year. With three times the tensile strength of steel and about a third the weight, the
Still, there are some who aren’t quite sold, including performance powerhouse Ferrari. About a year ago, the Maranello-based sports car manufacturer made clear its intentions to eschew the new composite in favor of what it saw as a better alternative – lightweight aluminum. And because carbon fiber is not practical or economical for use on certain chassis, suspension and unibody components, steel and aluminum will be kept around for many more years.
BMW’s new i8 sports car is one of the most carbon fiber intensive models marketed thus far. The passenger cell is made from carbon fiber-reinforced plastic (CFRP) and uses an aluminum frame for the gas engine and electric motor, the battery pack and the suspension. (Photo: BMW)
Despite the reservations of a few, it appears as though the carbon fiber march has picked up momentum. Now that the composite has attracted the attention of the mass production automotive giants of the world, many are interested in investing in the hightech material. Several top automakers are said to be ready to jump in to catch up with BMW’s lead. As the green revolution continues, carbon fiber will be at home with manufacturers striving to cut weight in the name of fuel efficiency and performance. The ultralight composite may even make its way into our daily drivers by the end of the decade.
See the full article at tinyurl.com/speedville
To read and view more great content, visit us at www.speedville.com.
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COVER STORY
Building a Great Workplace I’ve been receiving some valuable
workplace training from an unlikely teacher, and he’s now a great friend. Let me tell you about John. By Hank Nunn
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August 2014 | BodyShop Business
COVER STORY » Building a Great Workplace
“The Great Workplace: A workplace where employees trust their managers, enjoy coming to work, take pride in what they do and are internally motivated to do the right thing.” — Neil Anderson e should all strive to create a “great workplace.” Don’t we all want our people to trust us and enjoy their work? Shouldn’t we foster a work environment that creates internal motivation to do the right thing? Certainly! So why don’t most organizations do it? Usually we think of the things we must do to create a great workplace as “HR” stuff and don’t have time for it. Larger facilities and MSOs have a human resources person or department, whereas smaller facilities may “do it yourself” or use a consultant to dot the i’s and cross those human resource t’s. Many think HR means completing employment forms, conducting reviews and writing up employees so that there is adequate documentation in an employee’s file when we decide to fire them. This common perception certainly does not foster a great workplace! Great owners and managers rely on HR. We need to make sure the legal stuff is complete and accurate. But these owners and managers understand that building the great workplace requires constant effort. The reward is a positive work environment where people come to work because they want to! There is plenty of information out there on creating a great workplace. Google “great workplace” and you’ll find lots of websites, consultants and books on the subject.
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Bowwow » I’ve been receiving some valuable great workplace training from an unlikely teacher, and he’s now a great friend. Let me tell you about John. John is a large, untrained, one-anda-half-year-old pit bull mix that currently lives at the county dog shelter
place where employees trust their managers.” Working with John, the first step is to establish trust. He needs to trust me. I have no idea what exposure he has had with people. He may have been beaten, neglected or simply ignored. He needs to know that I won’t do any of those things! That’s accomplished by delivering a positive message through calm and consistent behavior. Yes, there are treats involved. When we hire a new employee, we really have no knowledge of their past, either. They may have been beaten, neglected or ignored, too. It’s management’s responsibility to deliver a calm and consistent message through our own behavior. Too many of us are calm and positive one day, then stressed and blowing up the next. The employee does not know how to deal with us; there is no trust.
Learn To Be Consistently Positive » When I met John, he
where I volunteer. John was assigned to me as a training project. My job? Try to make John more adoptable and safe. I’m not a dog trainer, but since the program is overseen by a professional trainer and I’ve been a management trainer for 25 years, I figured I could do this. John has been reminding me of some basic concepts used to create the great workplace.
Consistency Is King » The definition of a great workplace begins: “A work-
jumped on me and humped me, which was not a positive experience. Initially, I pushed him back down, shouted “OFF!” and figured he would stop. Sadly, shoving John down and shouting “OFF!” did not work. He has no idea what “OFF!” means, and he figured that when I shoved him down, I was playing so he played back by jumping and humping again. He was having fun! I was not. The professional trainer explained this to me and offered a solution: When John jumps and humps, turn away from him and ignore him as well as one can when being jumped and humped by an 85-pound pit bull. Then, as soon as he stops and sits, immediately reward him with a treat (dog money) and praise. He quickly learned that sitting calmly gets him paid and also gets him out of his kennel. Jumping and humping gets him ignored. I am not suggesting that our people, especially new hires, are going to jump and hump us! Nor will they respond to dog treats and a pat on the head. People are not dogs! But people do rewww.bodyshopbusiness.com 29
COVER STORY » Building a Great Workplace spond to positive reinforcement. Step No. 1 is to clearly explain or demonstrate our expectations or goals. Step No. 2 is to consistently catch people achieving those goals or performing in ways we expect, then find ways to reward them. The reward can often be something as simple as verbal praise and recognition. Always be looking for someone doing something right. When you find them, praise them! Be consistent and be positive.
Be Sincere » I once worked with a client who held regular weekly meetings with all of his managers where each one would announce their performance numbers for the month to date. If a manager called out a bad number, the client berated him in front of his colleagues. If a good or great number was called out, the client usually ignored it or offered a “backhanded” comment like, “We’ll see if that
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holds through the month.” The result? No one gave accurate numbers. One manager explained, “Why call out a bad number? I give him what he wants to hear, and at the end of the month I take my beating, once.” Those meetings were consistent, but they weren’t consistently positive. A better method would be to sincerely praise good numbers. When a bad number is called out, the client should ignore it in the group meeting, then follow up individually for an explanation and then offer to improve the performance.
You Get What You Give » John has an issue with impulse control. So when I’m with him, I force myself to be calm and gentle. That’s what I want back. Usually, he responds with calm and gentle. To test this, while walking John, I calmly picked up speed and said “Let’s go!” in a high-pitched voice. He went!
August 2014 | BodyShop Business
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One shop manager had been trained, by his HR manager, to document all employee issues with a “write-up” so that documentation was on hand when an employee needed to be terminated. The employee files were full of negative write-ups. Management was focused on catching team members doing something wrong! The team responded by creating their own files. Technicians documented repairs they felt were substandard and took photos of perceived safety issues and OSHA violations. They kept their photos and documentation in their own files. When employees were brought in for reviews or termination, the employee files, with the manager’s negative writeups, were reviewed. The employees fired back with their files. All in all, it became a very hostile environment. You get what you give. In this case, the employees were treated in a negative manner. Management was trained
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COVER STORY » Building a Great Workplace to catch them doing something wrong, so the employees gave back what they were given. In a great workplace, management is focused on catching people doing something right. Employee files are full of positive “write-ups” documenting positive behavior. Sure, a negative issue needs to be documented, but there should be far more positive
than negative events in the employee files.
It’s Rarely the Money » Most managers and owners think that people are working for money. Sure, we have to pay a competitive wage, but money is generally not the motivator we think it is.
To dogs, treats are money. Highvalue treats like dried liver are like $100 bills to most dogs, but not to John. Sure, if I want him to do something, I have to pay him. But do treats really motivate him? No, treats aren’t enough. Tennis balls do the trick! He has learned to “sit,” “lie down,” “stay” and “drop it” with tennis balls. One recent survey of 1,200 workers revealed that 71 percent felt that the most meaningful and rewarding recognition they ever receive are appreciative words from supervisors or fellow employees. You have to pay them a competitive wage, but frequent praise and appreciation actually motivates them! Bill is one manager who truly believes in creating a great workplace. He’s always looking for ways to reward employees and uses many reward and recognition tools constantly. His current favorite is to introduce happy customers to one of the technicians who worked on the customer’s vehicle. When a customer offers praise or appreciation for a repair, they’re asked if they would like to meet one of the technicians. No one says “no,” and someone from the team is called into the office. In most employees’ minds, being called into the office is not a good thing, so imagine how the employee feels when he or she is called to the office and introduced to a happy customer!
Communicate in “Their” Language » John does not speak English, Spanish or any other human language. He speaks dog. But he’s learning some English. He has figured out the meaning of “sit,” “down” and a few others, but that’s it. To communicate with John, I have to communicate in ways that are meaningful to him. It’s mostly gestures and positive reinforcement, catching him doing things right. His brain is small and his attention span is short, so we play with a tennis ball, then train for 10 minutes, then play again. As owners and managers, we need to learn to communicate in ways our employees understand. They don’t Circle 32 for Reader Service
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COVER STORY » Building a Great Workplace speak the same language as we do! Saying, “I need you to run 150 percent efficiency with a minimum CSI of 97 percent” to a new tech is like me asking John to get me a glass of Chardonnay. John and the new hire will nod as if they understand, but they don’t! Blah, blah, blah, blah. It would be better to explain to the new hire that we expect
them to generate, or flag, 12 hours for every eight they work. We can explain CSI, but it has been shown repeatedly that customer satisfaction is more dependent on maintaining customer communication than the quality of repair. Use time spent in employee orientation to discover what may motivate the employee. Asking
about hobbies and interests may provide a vision of what may be used as a reward or recognition later. Perhaps the new hire coaches a youth soccer team. A great reward could be to allow flex time during soccer season to allow for coaching in the afternoon rather than in the evening after work.
Make Expectations Clear » If I want John to sit for three minutes, I can’t just explain, “John, I want you to sit there for three minutes. When you do, I’m giving you a treat.” He will pant at me and wait for me to throw a ball because he’s a dog. So, I ask him to sit, and when he does, I praise him and give him a treat…then another…and another as he stays sitting. Eventually, he figures out that the guy who throws balls “wants me to sit. OK. Thanks for the treats. When are you going to throw the ball?” Getting John to walk calmly on a leash is hard because he pulls. I don’t want him to do that, so when he does, I stand still. His reward is to walk, and we only walk when the leash is slack. Right now, we stand more than walk, but he’s getting it. Sometimes he walks right at my side! When he does, he gets praise and treats. Do our employees know exactly what’s expected of them? Are performance goals clearly spelled out? Is all filler to be finished in 180 grit and free of pinholes? Where’s it written? Do we change that standard on Thursday because “that one is just a used car and has to be on the line Saturday so finish it in 80 grit and we’ll get it painted and buff it if anyone complains.”
Trust and Consistency » The Great Workplace requires trust. Trust requires consistency. We can’t change standards on the fly because it’s not consistent and damages trust. Do our employees know they’re expected to be at work, in the workspace, at 8 a.m.? Or is the culture of the shop to just come in around 8, have a cup of coffee, chat with co-workers and drift over to the job by 8:30? Expectations must be clear and conCircle 34 for Reader Service
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August 2014 | BodyShop Business
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COVER STORY » Building a Great Workplace sistent. We can’t go out and yell at one person who’s late if we’ve never enforced our “on time” policy before. We can’t have a policy or standard that will be effective if it’s not written, understood and consistently enforced. Let’s look at the “be at work on time” issue. Suppose we have a feeling that no one seems to show up on time
anymore. In fact, we don’t hear air tools humming until 8:20 a.m. So we check the timecards and verify the crew is trickling in from 8:00 to 8:15. On-time performance is a big issue in any productive environment. I’ve sat in on shop meetings and listened to owners explain that, “If all of you are one-tenth late, that’s one hour per
day of production or 1.5 billed hours lost every day! If you look at the annual effect of that, it’s costing all of us big money!” You can then see the employees shut down and tune out. It’s just not relevant to them. Before we go out and threaten to fire the late ones, we should review our rules to make sure we have an ontime policy. Is it written, and has it been communicated to the team? Here’s Bill’s Great Workplace alternative: Restate the on-time policy to the team at a shop meeting. Rather than point a finger at those who are showing up late, his positive tactic would be to create an “On-Time Contest” for the next 90 days. Determine a reward for the best on-time performance, measure on-time performance, post the scores consistently and reward the winners. On-time performance will increase. Measurement is simple, scores are posted and the employee who has the best on-time performance wins something meaningful. There will be one or two who just can’t quite figure it out who will require a one-on-one conversation to find out why they’re consistently late. Bill did this and found one of his best techs was always 15 minutes late. Why? Because he had to drop his child off at daycare. Simple solution? Change his start time from 8:00 to 8:30.
Quick Check » The great workplace is an enjoyable place to work, and to manage. Is your business already great? For a “quick check,” look into your employee files. Are they full of “writeups” for poor performance, problems and mistakes? If so, your business is not a great workplace. The employee files in the great workplace should be full of positive “writeups” because management is tuned in to finding people doing things right and rewarding positive behavior. So, get started creating your own great workplace! BSB Hank Nunn is a 37-year collision industry veteran. He may be reached at h_nunn@msn.com. Circle 36 for Reader Service
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MSO
HR Guidelines for creating buttoned-up, uniform human resource policies and procedures that are fair to your employees and reduce your exposure to liability. by Kristen Hampshire
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August 2014 | BodyShop Business
or years, key managers at Collision Care had divided up human resources (HR) responsibilities, from overseeing vacation time to answering employees’ questions about the company’s 401(k) plan and benefits. The controller served as the HR point person. But growth over the years – Collision Care now operates eight locations with 120 employees – has created a more complex HR picture. “When you’re smaller, you can juggle the responsibilities, but [as you grow], the company winds up being exposed to serious liabilities without a full-time HR manager,” says Lou Berman, vice president of sales for the Philadelphia, Pa.-based company. Employees need access to a corporate representative who can answer all questions related to HR in a timely manner, Berman says. Giving employees a single-source contact ensures that Collision Care’s people can fully take advantage of the benefits and culture the company offers. “There is limited time when employees can break away from their production duties to contact us to talk about issues that are of real importance to them, whether it be family and medical insurance or their 401(k) plan,” Berman says. “From that perspective
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MSO » Mastering HR alone, we feel it’s important to hire an HR person full-time so employees get the access they deserve.” Offering solid systems in the form of HR and general options is actually a hiring and retention tool, Berman points out. “You want to hand employees something tangible that they and their families can refer to that shows what your company has to offer,” he says. Collision Care is currently in the process of hiring its first full-time HR manager – a central contact for employees and an issue spotter who will help the business stay compliant and avoid legal exposure. This comes following years of solidifying its employee manual and training, a priority for the company, Berman says.
4 Signs You’re Ready to Hire an HR Pro Difficulty hiring talent fast enough, or integrating employees from acquisitions. An HR professional can provide effective recruiting, training and development systems.
1. 2. 3. 4.
Legal risk due to workers’ compensation, wrongful termination lawsuits, pay inequity, sexual harassment claims, etc. An experienced HR manager will work as a risk spotter, and implement policies that mitigate the potential for exposure. Policies and procedures that do not support growth. An HR professional will evaluate existing policies, determine where there are gaps that expose a company to risk, and assemble a comprehensive document that serves personnel and legal purposes. Excessive spending on outside human resource services. How much are you paying the HR consultant? Is it time to bring on a full-time employee who will be dedicated to your company and align HR systems with your business strategies? Source: Workforce.com
A Milestone » Hiring a dedicated HR person is a significant milestone
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August 2014 | BodyShop Business
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MSO » Mastering HR for growing MSOs, and an important step toward maintaining consistency across operations – two of the greatest challenges that MSOs face during expansion. A third is integrating employees from an acquired location into the company culture, says Marcy Tieger of Symphony Advisors in Irvine, Calif. In fact, proper HR practices are important for shops of any size, with a single location or shops in multiple states. “When there are not policies and practices that are clearly stated in writing, and in a central location, there is the risk of each location doing things differently, which can create some [legal] exposure for the company,” Tieger says. Consistency, across the board, is the key to maintaining an effective, compliant HR practice that grows along with the company.
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Get It On Paper » What’s the vacation time policy? How does the business handle sick days? What benefits does the company provide, and how does the 401(k) program work? These are HR questions employees can ask, and depending on who fields the question, the answers could be very different. That’s never a good thing. “You have to treat everyone the same, and without a manual to go by, that can be difficult,” says Bob Juniper, president, Three-C Body Shops Inc., Columbus, Ohio. The problem is that many growing MSOs have pieces-parts of an employee manual, but not one polished document that has been carefully reviewed for legal compliance. “Sometimes, there’s a failure to bring all the threads together as a business grows,” Tieger says. As companies grow from one to
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two or more locations, the need for standard operating procedures and HR policies is even greater because of increased exposure. “A single location might not have to put a lot of its policies in writing, then as they grow, ad hoc, they start adding sections to a manual,” Tieger says. “Before they know it, they have a hodge-podge, and the manual becomes the last thing they take care of because they’re growing and not thinking about this [policy] infrastructure.” A concise, professional policy manual can ensure that employees are treated the same, Juniper emphasizes. “Everyone wants to be treated fairly,” he says simply.
Employee Transitions » An employee manual is also critical when integrating employees following an acquisition. It spells out the company’s benefits and how it operates. When
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MSO » Mastering HR running multiple locations, a manual ensures that key word: consistency. “What you don’t want is a situation where one location has been told, ‘This is the policy,’ then talking to employees at the other location, they say, ‘This is not the way we do it here,’” Tieger says. This scenario is particularly prevalent following an acquisition when employees fail to integrate into the company. However, with formal policies laid out in an employee manual, staff will see the company’s expectations and decide if they want to continue their employment there. Juniper has learned that having policies on paper is valuable for retaining quality workers – and letting go those who are not willing to work up to the company’s standards. He recalls the exist turnstile that occurred following one acquisition. “We lost all of the people over a
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period of six to eight months, and that was because we did things so differently than what the shop owner did before,” he says. The fall-out was not negative for Three-C because the company communicated its standards, and those employees who did not want to integrate into the corporate culture simply moved on. Because the policies were on paper, there was no question about whether the new employees were being treated unfairly. They could either choose to adhere to a progressive, professional culture – or go their own way. Juniper says Three-C worked to integrate these new employees into its culture. “But we were raising the bar,” he says of the company’s policies and practices. Those who wanted to work “the old way” moved on. Tieger says an acquisition generally
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means richer benefits for employees who continue with the company. It’s important for companies to properly communicate and execute benefits and HR policies. How will it transition accrued benefits, such as vacation time? “There needs to be an orientation explaining the benefits to staying on,” Tieger says. “And, the company needs to be able to convey the benefits of the business culture and the actual nuts and bolts of what employment looks like.”
Hiring an HR Pro » Pulling together “the threads,” as Tieger says, can be a real challenge for growing MSOs. Over time, HR becomes a significant role with increased risk exposure if not properly managed. At a certain point, MSOs face a decision: Should we hire a dedicated HR person? There is not a company size
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MSO » Mastering HR quota – as in, hire a full-time HR person when the employee roster reaches 60, 70 or 100 people. But there are certainly triggers that indicate the right time to hire on an HR professional – and, Tieger suggests, one with experience working with multiple branches or businesses as opposed to a single operation.
At Collision Care, the tipping point of when to hire a full-time HR person was when managers recognized that they could not be as responsive to employees’ HR questions and concerns as expected. At Three-C, Juniper’s wife joined the team as the dedicated HR professional – having past experience in the retail industry
– when the company grew to two locations and about 40 employees. Now, Three-C has four locations and 48 employees. Having a full-time HR manager ensures that employees have a venue for airing concerns, Juniper adds. “If you want to retain good people, you have to give them a chance to open up in a comfortable situation,” he says. When hiring an HR professional, an MSO should consider whether the professional has experience working with multiple locations, Tieger says. And, if the company has locations in various states, the HR person’s knowledge base must span the company’s geography. Meanwhile, Juniper contends that Three-C has minimized HR issues over the years by adopting solid business systems that leave less room for error. For example, when the company began to grow quickly and found less time to properly screen candidates for hire, he says HR became stressed because of consequences from hiring the wrong people. Employee screening is an important role that falls under the HR realm. Even pay structure affects the HR equilibrium. Three-C opts to pay hourly and salary wage (flat rate) vs. commission. “I found we have much more of a team effort this way,” he says. Again, this speaks to fairness and avoiding employee animosity and the HR issues that can ensue. “What I have learned after all these years is that how you run the business really affects that HR tremendously,” Juniper sums up. Berman’s advice: “If you have intentions of expanding, start building an employee manual now,” he says. “Have a working script as you go along so when you’re ready to hand off those HR responsibilities to someone else, the book is already written.” BSB Kristen Hampshire is a freelance writer based in Cleveland, Ohio.
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BUSINESS
Negotiations: A Strategic Approach Negotiations have traditionally been viewed as contests to be won. But current models emphasize a more strategic approach, which can be beneficial to both parties. Part 1 of a 2-part series. By Domenic Nigro
egotiations are often traditionally viewed as a “transactional” model – a contest to be won. Current negotiation models emphasize a more strategic approach in order to develop an ongoing customer-supplier relationship that’s beneficial to both parties. While the United Auto Workers may have good reason to take the transactional approach when negotiating with car manufacturers, it’s not the best approach for business owners looking to sustain and expand their shops.
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Aim High » The business owner must begin by “aiming high” in negotiations with suppliers, looking for the best value for the products he’ll purchase. The strategic approach focuses on value creation. When a supplier quotes a price, the business owner cannot view it in isolation from the entire ownersupplier business relationship. As a shop owner, you want a supplier who delivers the parts you need in a timely manner and provides quality parts for you 48
August 2014 | BodyShop Business
and your customers. The supplier wants your repeated orders. Having a reliable supplier of quality goods creates value for your shop. Rather than a contest with a winner and loser, the strategic approach is a “win-win” proposition for both parties in the business relationship. Among the benefits the shop owner can look for from the supplier are things such as: 1) transportation accommodations, 2) favorable payment terms, 3) additional purchases, 4) the opportunity to buy a combination of products and/or 5) accommodations in the delivery of parts.
Prepare » A shop owner needs to prepare before entering into negotiations. In the strategic approach, keep the following in mind. Give yourself room to negotiate. Don’t go into the process with a “take it or leave it” attitude, backing yourself into a corner. Have a clear goal in mind for the negotiation. Be prepared
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BUSINESS » Negotiations to make concessions that are beneficial to your position, but know that it’s not necessary to match the other party concession for concession. As a buyer of parts and supplies, you begin lower on the price scale, giving legitimate reasons for your position. In the strategic approach to negotiations, “concession” is not a dirty
word. Remember, the process is a give-and-take for both parties. It may be easy for you to concede on minor issues to generate goodwill. But, remember also to not be ridiculous in the process, asking for concessions you know the other party can’t make. At the same time, don’t insult the other party by not responding to their
legitimate business requirements. The strategic approach requires a comprehensive approach for the shop owner. Besides price-per-part, the shop owner can deal more intelligently if he also includes items such as: cost of delivery; storage of products; and, response from the supplier if problems occur.
Three Ways » So now you’re ready to use the strategic model of negotiations. As a shop owner, you want to develop reliable business relationships with your suppliers, shippers, etc. The first consideration is the arena in which you will negotiate. There are basically three ways to negotiate with your suppliers: by phone, email and in person. Most of the time, suppliers are dealt with on the phone. In the use of the strategic model, this poses challenges for the shop owner. In the strategic model, you must be in tune with the ebb and flow of the process. On the telephone, a major issue is the ease with which distractions can draw you away from your discussions with your supplier. In the office, employees are probably interrupting you with questions about service, individual customers and parts. Plus, other calls may be coming in that need your attention. Rule No. 1 for telephone negotiations: don’t be distracted. If you’re not simply going to accept a supplier’s initial stated price for parts, you need to block a chunk of time to negotiate. It doesn’t need to be a two-hour discussion, but it certainly won’t be a five-minute call. Allow enough time for the give-and-take which you and the supplier need,
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BUSINESS » Negotiations at least 10 to 15 minutes. You’re building a reliable, mutually beneficial business relationship, so you can take the time to work on it. The employee with a question can work on another part of the service until you’re finished. The customers will be patient if you (or an employee) explain that you’re tied up but will be with them as soon as possible. Rule No. 2 for telephone negotiations: have a pen in your hand and use it. Even though you’re not distracted, numbers may start flying through the phone lines. Even if you have the best of intentions, you won’t remember everything you discussed. When a supplier tells you he’ll drop a price by 5 percent in response to your commitment to order parts from him exclusively, you need to have a record of the original price, the discounted price tied to your commitment for future orders and
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the specifics of your commitment. Write them on a sheet of paper you can use for future reference. It’s simple enough to get started with the pen: write the date, time and name of the person on the other end of the line. Then, take notes. At any time subsequent to the conversation, you’ll know exactly what commitments you made and what exactly your supplier promised. Rule No. 3 for telephone negotiations: have a checklist when you start. You know what you can offer the supplier, and you know what you want. Make a list for each. As you end the telephone conversation, it will be easy for you to go over the terms which you and your supplier have reached.
Email » Another avenue for negotiation is email. With written correspondence, you may think you don’t need to be as engaged as you are in
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telephone negotiations, and this is true to a certain extent. With email, there’s no need to take notes because everything is already in writing. You do need, however, to remain diligent. Rule No. 1 for email negotiations: make a folder for each supplier. Going back and forth by email, it’s easy to lose a supplier’s proposal or counteroffer in your inbox. Once you see the sender, move the email to a folder you’ve created for him. Then, it’s easy enough to see the progression of offers and counteroffers which have transpired. When a final agreement has been reached, you can easily see all the terms and commitments in the business relationship. Rule No. 2 for email negotiations: clarify terms. In telephone negotiations, it’s simple to get explanations for proposals: you just ask. With email, it may be necessary to reply to an offer with a request
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BUSINESS » Negotiations for more information. Don’t assume that terms such as “standard” mean the same to you as they do to your supplier. Request information, hit the reply button. Rule No. 3 for email negotiations: don’t delete prematurely. You want to make sure that the arrangements you make are put into effect, especially with a new supplier. Hold on to the negotiation paperwork until you’re satisfied that the relationship is working and you’re getting and giving what you want.
Face-to-Face » The third avenue for negotiation is face-to-face. Whether a sales representative sets up an appointment or makes a cold call, if it’s a business relationship you want to explore or develop, take the time to speak to the rep. There’s a great deal to be said for looking a supplier or rep in the eye and knowing that you can trust him. Rule No. 1 for face-to-face negotiations: conduct yourself professionally. You’re looking to establish and/or develop a business relationship in your negotiations. While your parts supplier might be a blast at the bar, you’re in an office now. You don’t need to be a
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robot, but you also shouldn’t be having an argument about your favorite sports team. Save it for happy hour! Rule No. 2 for face-to-face negotiations: stay focused. You want to rely on your supplier, and you want him to rely on you. In order to do that, make sure to stay on target. Know what commitments you can make, and know what products and services your supplier can provide. Rule No. 3 for face-to-face negotiations: get it in writing. A word or two and a handshake don’t make for a clear contract for services and products. Yes, a handshake may seal
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the deal, but you need to be clear on the deal you’re sealing. Write terms and commitments as they’re made. Then, when everything is settled, seal the deal with signatures. Regardless of the arena in which you make your deals, stay focused, know the terms and write them down. You’re negotiating when you enter into a business relationship with your suppliers, shippers, etc. Develop that through strategic negotiations, and both your business and your suppliers will benefit. BSB Domenic Nigro is co-owner of Nigro’s Auto Body in Philadelphia, Pa. He can be reached at dnigrocopies@gmail.com.
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»| Industry Update |« ARA continued from pg. 13 Darrell McGraw, ARA expressed disappointment about statements published by McGraw’s office regarding “recycled”/”salvaged” automobile parts, specifically objecting to references classifying recycled/salvaged parts to “junkyard parts.” “The AG’s derogatory and misleading characterization of recycled/salvaged automobile parts does a disservice to consumers in West Virginia,” said ARA in the letter. ARA also differentiated between aftermarket and recycled OEM parts, writing that “These quality ‘green’ auto parts also meet the performance, safety, fit and durability standards of the OEM. ARA calls on [the AG’s] office to help the people of West Virginia understand that recycled or salvage parts are OEM parts, fully functional and in many cases identical to original parts.” In its June 2014 opinion, the West Virginia Supreme Court of Appeals considered the applications of the Crash Parts Act and the Consumer Credit and Protection Act to body shops and automobile insurance companies employing the use of salvage/recycled OEM crash parts. The Court found neither statute prohibited body shops or insurers from utilizing these parts, and applauded the insurers for using measures to reduce premium costs for their customers. The Court also considered whether the West Virginia Consumer Credit and Protection Act and its prohibition of unfair methods of competition and unfair or deceptive acts or practices had any application to the use of salvage/ recycled OEM parts. The Court determined that, without additional mandate by the legislature that insurers and body shops must disclose and obtain consent prior to using salvage/recycled OEM parts, there was no unfair or deceptive act or practice in the use of salvage/recycled OEM parts. Circle 56 for Reader Service
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»| Industry Update |« Collision Care Auto Body Centers Hosts Raffle for Autism Awareness Charity Collision Care Auto Body Centers, a Philadelphia-based collision repair MSO, recently hosted a fundraiser for its charity of choice, Louie’s Voice. The company raffled tickets for a trip to Punta Cana, courtesy of Apple Vacations, and a $500 cash grant. The prize winners were Lou Dugan and Jewel Taylor, respectively. “We were completely blown away,” said Dugan. “We had a friend, unbeJewel Taylor, winner of the $500 grant, knownst to us, buy us a ticket for this with Lou Berman, Collision Care vice raffle. When Lou Berman, director of Louie’s Voice, called to tell us we won, president of sales and president of Louie's Voice. I was shocked. My wife and I didn’t know about entering a contest. This comes at the perfect time for us. Things have been tough lately. Our son struggles with autism, and our daughter was diagnosed with cancer a short time ago. Needless to say, we haven’t had time for ourselves.”
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DAVID TYLER f^\aZgb\% EZkZ l :nmh K^iZbk
/// Hot Shot Delivery. Just one more extra mile we go for guys like David.
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*Excludes sales tax. See website for details.
»| Industry Update |«
National AMI Announces 2014 Tom B. Babcox Memorial Scholarship Recipient The Automotive Manage- ented member of the ment Institute (AMI) – in Automotive Service conjunction with Association Babcox Media – (ASA). The recipihas announced ent receives Steve Geiling, $1,000 to be apowner of Geiling plied toward exService Inc. in penses to attend educational sesMetairie, La., as sions and view recipient of the Steve Geiling the latest repair Tom B. Babcox technologies and equipMemorial Scholarship. ment during the Congress The scholarship recogof Automotive Repair and nizes a management-ori-
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Service (CARS), to be held July 30-Aug. 2 this year in Detroit. Geiling has worked in the automotive service industry for 37 years and has been a shop owner for the past six years. He holds several industry certifications and earned the Institute’s Accredited Automotive Manager (AAM) designation in 2010.
When not working in the shop, he contributes his time to various industry and community organizations. “I’m grateful to be selected as the recipient of the Tom B. Babcox Scholarship and to be given this opportunity to improve my management skills and share that knowledge with those I work with,” said Geiling.
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»| Industry Update |«
AMI and ASA Announce 2014 Emil Stanley Merit Award Recipient The Automotive Manage- (ABRN) until his death in 1989. Stanley was comment Institute (AMI) and mitted to strengthening the Automotive Service professionalism Association of the collision (ASA) have jointrepair industry ly announced through educaStefany Lorang, tion. He was reccreative director ognized as a for LaMettry’s strong advocate Collision in Inver of the InternaGrove Heights, tional Autobody Minn., as the reStefany Lorang Congress & Excipient of this year’s Emil Stanley Merit position (NACE), the world’s largest collision Award. The award honors Emil repair event sponsored annually by ASA. Stanley, who was pubLorang has worked in lisher of Automotive the collision repair indusBody Repair News
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try for more than seven years. She has a bachelor’s degree in marketing management from the University of St. Thomas and is currently completing the necessary requirements to earn AMI’s Accredited Automotive Manager (AAM) designation. When not working in the shop, she contributes her time to various community and industry organizations. As the scholarship recipient, Lorang will receive $1,000 to be applied toward expenses to at-
tend educational sessions and view the latest repair technologies and equipment during NACE 2014, to be held July 30 through Aug. 2 in Detroit. “I am honored to be selected as the recipient of this scholarship,” said Lorang. “I’m looking forward to a full schedule of classes, networking with other industry professionals and experiencing Detroit.” The Emil Stanley Award is made possible by a grant from ASA to AMI’s resource development program, EXCEL.
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»| Industry Update |« NABC Garners 1,000-Plus Pledges to Not Text and Drive at SkillsUSA n industry-wide effort by the National Body Council (NABC) to save lives received strong support at the recent SkillsUSA conference in Kansas City, where more than 1,000 students, parents and conference attendees signed a pledge not to text and drive. Partnering with AT&T to promote the nationwide It Can Wait campaign, NABC hosted a driving simulator that enabled individuals to personally experience the dangers of texting and driving. This was the highest number of
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pledges collected at a single event with the simulator this year. NABC’s Distracted Driving Initiative was created to focus industry attention on one of the most important issues facing our communities today. “Our collision industry knows far too well the impact of texting and driving,” said Chuck Sulkala, NABC executive director. “We urge our colleagues to do everything we can to increase public awareness and educate drivers of all ages on the dangers of inattentive and distracted driving.”
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Examples of public awareness activities recommended by the NABC for collision industry businesses to implement in local communities include: 䡲 Host a rally and pledge drive. Set up an informational table at a local high school event, i.e., football game, at a shopping mall or any other site popular with young drivers. 䡲 Host an open house at your business location. Serve refreshments. Invite insurance agents, customers, community groups, etc. Set up a computer or iPad for guests to
take the It Can Wait pledge right there on the spot. 䡲 Add a flyer and pledge form to all paperwork when returning vehicles after repair. 䡲 Partner with local businesses to give discount coupons for a car wash, restaurant, etc., for anyone who comes in to take the pledge. 䡲 Consider putting a total loss vehicle on display in front of your shop, with signage urging people to stop texting and driving. 䡲 Launch a public awareness campaign on your social media platforms.
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»| Industry Update |« Service King Joins National Auto Body Council as Diamond-Level Member he National Auto Body Council’s roster of Diamond Members continues to grow with the addition of Service King Collision Repair Centers. With more than 170 centers across 20 states, Service King says its Diamond-level membership provides the company with opportunities to help further NABC’s mission to promote a positive image of the collision industry and to make a positive impact in local communities nationwide. “Service King is one of the fastest-growing collision repair companies na-
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tionwide, and as part of our success, we want to give back to the communities that have helped fuel our expansion,” said Jeff McFadden, president of Service King. “We look forward to joining our colleagues and peers throughout all segments of the industry to provide our team members with more opportunities to expand their community outreach through NABC programs.” Service King says its recent acquisition of Sterling Auto Body Centers, a Diamond member of the NABC since 2009, adds a strong component to the
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company’s charitable and community service efforts. “A number of our existing centers have already adopted NABC’s Recycled Rides program, and we look forward to integrating Sterling’s dedicated experience with NABC initiatives to make an even stronger impact nationwide,” said McFadden. “We are pleased to welcome Service King and appreciate their efforts to step up to this important leadership role as a Diamond Member of the National Auto Body Council,” said Chuck Sulkala, NABC executive di-
rector. “Service King’s leadership commitment, combined with ongoing support from our current members, is a testament to the growing momentum to join forces and collaborate in a common goal to better serve our collision industry through positive, beneficial community initiatives.” NABC programs, implemented nationwide through the organization’s network of more than 200 member companies, include Recycled Rides, First Responder Emergency Extrication (F.R.E.E.) and the Distracted Driving Initiative.
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Product
Spotlight Waterborne-Breathable Air Combo System s the use of waterborne paints becomes more popular and in some areas, required, the need for clean and dry compressed sprayable air is a critical component. The need for the proper filtration to remove moisture, oil vapors, gaseous hydrocarbons, dirt, rust, scale, and other potentially dangerous contaminants is the minimum at best. Then if the dew point and relative humidity can be drastically lowered, you can create a quality of spray air necessary to properly apply today’s waterborne paint products.
A
Model 50-WB
The convenience of having a solution to comply with OSHA regulations for proper air supplied respiratory protection, and delivering Ultra Clean & Ultra Dry Air from a single system, is cost effective and efficient. The Model 50-WB can process up to 50 SCFM of Breathable Air or 35 SCFM of Ultra Clean & Ultra Dry Air, or any combination within those parameters.
Martech Services Company has been manufacturing
The Model 50-WB is designed to work with your existing compressed air source to properly filter and monitor the compressed air for Grade “D” Breathable Air, plus this system also provides Ultra Clean & Ultra Dry Air for use in spraying waterborne or solvent-based paints.
Quality Air Breathing Systems
This system can handle up to two painters at the same time. The Model 50-WB is a 50 SCFM system, and is also available in an 80 SCFM system.
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MARTECH SERVICES
For more information, contact your local jobber/dealer or
C O M PA N Y We’re serious about the air you breathe.
800-831-1525 www.breathingsystems.com
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»| Industry Update |« AMI Announces 2014 Arrowhead Automotive Specialty Market “High Octane” Scholarship Recipient
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The Automotive Management Institute (AMI), in conjunction with Arrowhead Specialty Market, a division of Arrowhead General Insurance, has announced the recipient of the Arrowhead Specialty Market “High Octane” scholarship. The recipient is Chris Pfefferle, president, Pfefferle Tire and Auto Service, Fairfield, Ohio. The scholarship recognizes a management-oriented member of the Automotive Service Association (ASA) Mechanical Division. The recipient receives $1,000 to be applied toward expenses to attend educational sessions and view the latest repair technologies and equipment during the Congress of Automotive Repair and Service (CARS), to be held July 30-Aug. 2 in Detroit. Pfefferle has worked in the automotive service industry for 18 years. He holds several ASE certifications and earned the Institute’s Accredited Automotive Manager (AAM) designation in 2011. When not working in the shop, he contributes his time to various community organizations. “I am extremely honored to be the recipient of this scholarship from AMI and Arrowhead Automotive Specialty Market,” said Pfefferle. “I’m excited this opportunity will allow me to better myself and sharpen my skills through the abundance of quality training available at CARS.”
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»| Industry Update |« Hyundai Launches Go Genuine Collision Conquest Program Hyundai Motor America has launched its Hyundai Go Genuine Collision Conquest program, open to all Hyundai dealers.
The program provides reimbursement to dealers, allowing them to competitively price their Hyundai Genuine Parts against al-
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ternative, non-Hyundai parts. Competitive prices help collision repair facilities purchase more Hyundai Genuine Parts as opposed to alternative, non-Hyundai parts, says the automaker. The program is launching with parts such as hoods, fenders, bumper covers, head lamps and tail lamps. These parts and the reimbursement associated with them are available for all Hyundai vehicles, regardless of age, for all participating dealers. Additional parts may be added to the program at a later date. “A program that encourages dealer-owned and independent repair shops to purchase Hyundai Genuine Parts from their local Hyundai dealer has so many benefits,” said Frank Ferrara, executive vice president, customer satisfaction, Hyundai Motor America. “Hyundai owners benefit through the assurance that approved factory parts can be used in their repairs, shop owners know they are getting
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quality parts at a great price, while dealers benefit through increased parts sales.” Hyundai has teamed up with Overall Parts Solutions (OPS), a Texas-based company, to allow dealers and repair facilities to work together using the OPSTRAX and VALUTRAX tools in a streamlined interface. Using the OPSTRAX and VALUTRAX tools, dealers and repair facilities are able to see all the parts on a collision repair estimate including the conquest pricing for program parts. Using the program and tools, dealerships and body shops can act immediately. “OPS is excited about the opportunity to team up with Hyundai Motor America,” said Nick Bossinakis, founder and CEO of OPS. “OPS’s vision has always been to provide collision shops and parts suppliers alike with tools that would positively impact their businesses as well as create innovation and ease of use within our industry.”
Product
Spotlight Looking for a refinish system to provide a superior finish, every time? Look for … ®
Ultra 7000 Premium Automotive Refinish System he Ultra 7000® Automotive Refinish System from Sherwin-Williams Automotive Finishes is a versatile, solventborne product line delivering premium urethane performance to customers expecting the highest in productivity, cycle time, and color match. Available in basecoat and single-stage technologies, the Ultra 7000® refinish system is supported by OEM Certifications, a Limited Lifetime Guaranty, and has decades of success in the Collision Repair, Custom Restoration, Fleet Refinish, Manufacturing, Recreational Vehicle, and Automotive Interior market segments. The Ultra 7000® refinish system has consistently driven industry innovation with new primer, color, and clearcoat technologies that push the envelope for speed and redefine the expectations for premium performance.
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ULTRA 7000® Features, Advantages, And Benefits:
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Sherwin-Williams Automotive Finishes offers a complete portfolio of automotive refinishing products and services. We have the perfect solution for your business needs, no matter how big or small, and will continue to pursue excellence of solutions for you. ASK.
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»| Industry Update |« Axalta Coating Systems Sponsors First State Robotics and Awards Scholarship Through its sponsorship of First State Robotics of Delaware and the Miracles of Engineering (MOE) First Tech Challenge team, Axalta Coating Systems awarded a
scholarship to robotics team member Noah Andrews. Andrews recently graduated from high school and is looking forward to starting college in the fall as an informa-
tion technology major, focusing on security. He and some of his robotics team members provided a robotics demonstration at Axalta’s North American headquarters where
CAPA Teams Up with IIHS to Develop Aftermarket Parts Standards The Certified Automotive Parts Association (CAPA) has partnered with the Insurance Institute for Highway Safety (IIHS) to develop its 501 Bumper Standard. This criterion allows the market to identify parts that are comparable to more expensive OE parts, according to the organization. The development of the CAPA 501 Bumper Standard included extensive examination of various bumper parts, comparative testing, consultation with
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industry experts and input from CAPA’s technical committee. In addition, IIHS conducted a series of lowand high-speed demonstration tests in order to evaluate both the crashworthiness and damageability of a vehicle equipped with CAPA standard parts. IIHS Chief Administrative Officer Joe Nolan says test vehicles that used nonOE, CAPA-certified parts received similar damage protection to those equipped with OE parts.
Andrews was presented with his scholarship. “It is a pleasure for us to invest in the engineers of tomorrow,” said Nigel Budden, Axalta vice president and head of its North American business. “The First State Robotics organization and the MOE team are examples of young minds preparing and nurturing for a brilliant future. Axalta believes in hiring and retaining the brightest talent, and the robotics students are an example of the benefits of early training and dedication. We look forward to their joining the workforce one day.”
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Aluminum Solutions Pulse Migwelder ✔ Aluminum Workstation ✔ Aluminum Studwelder ✔ Plasma Cutter ✔ . at NACE As seen ee us Come s . at SEMA
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Pulse Mig 301
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Pulse Mig 322
Plasma Cutter 279
(386) 255-7090 www.cebotechusa.com • sales@cebotechusa.com Circle 73 for Reader Service
»| Industry Update |«
CCC to Offer Aftermarket Part E-Commerce Solution CCC Information Services (CCC) announces that it has reached agreement with WHI Solutions, an eBay company, to offer e-commerce services that streamline the process for aftermarket suppliers to present and sell their parts to collision repairers and mechanical repair shops. The e-commerce suite will support direct sales to active buyers and provide listing support services through eBay Motors. WHI Solutions is a leading provider of on-demand ebusiness solutions to the automotive and heavy truck industries. “We’re excited to work with WHI Solutions to bring services to the aftermarket industry that will make it easier for WHI parts suppliers to gain exposure to the collision repair community,” said David Boden, vice president, CCC
Parts Services Group. “CCC works with thousands of collision repair facilities that purchase millions of dollars in parts each year and are always looking for quality suppliers. By working with WHI Solutions, we’ll be able to offer another option for suppliers interested in connecting with repairers in an easy and efficient way.” Added Bryan Murphy, manag-
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ing director of WHI Solutions, “CCC is a leader in the collision repair marketplace, and we’re very excited to begin working with them. We shared news of our relationship with CCC with members of the Auto Body Parts Association (ABPA) recently and received a great response. We look forward to our future work and bringing services to the marketplace.”
Diamond Standard to Expand Aluminum Replacement and Cowl Induction Style Hoods iamond Standard Brand Parts Group announced that it now has the only cowl induction style hoods manufactured 100 percent in a Diamond Standard facility that have achieved multiple levels of accredited aftermarket parts certifications. “Why does this matter? Because sustainable quality under the Diamond Standard Brand Quality System ISO9001/TS16949 processes is assurance that the product you receive is made in one of the finest facilities in the aftermarket,” said Michael O’Neal, president of Diamond Standard. “Advanced manufacturing capability in handling high-strength steels and aluminum alloys is a critical piece of Diamond Standard’s leadership going forward.” Reflexxion manufactures over 100 patented applications of steel and aluminum cowl induction style hoods for popular light duty trucks and replacement steel and aluminum hoods. Reflexxion Brand cowl induction style hoods and Diamond Standard Brand Parts are available throughout North America from limited quality distributors, including the AQRP Program at Keystone, an LKQ Company.
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Product
Spotlight Quality Compressed Air Filtration Products almec North America is a proprietary distributor of compressed air filtration products. All products are designed and produced in our facilities here in the U.S.A. As a leader in providing the right equipment for a particular service need, Walmec North America is available to respond directly to the end user’s questions and concerns, and normally ships orders the same day. We offer point-of-use compressed air filters to remove liquid, oil, moisture, and contaminates down to a standard of 5 micron. We also offer oil and vapor removal filters, with ratings as low as .01 micron. And we offer membrane dryers from a 15 CFM to an 80 CFM size and other sizes in-between. In addition, we offer THE SOLUTION system that provides Ultra dry, Ultra clean, and heated atomizing air. Plus, we offer other devices to clean compressed air to fit the end user’s needs. When you are working with wet, oily, dirty, or other contaminated compressed air, look to Walmec North America to provide the expertise, service, and results desired when trying to overcome a compressed air concern or problem. For more information, contact your local jobber/dealer or
WNA 5 Micron Filter, Model # WNA 107F
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P.O. Box 328 Mazeppa, MN 55956 866-764-8377 Fax: 507-843-4953 www.walmecna.com
WNA .01 Micron Superstar Filter, Model # WNA SAM-050
Membrane Dryer, Model # WNA AMD-035
The SOLUTION, Model # WNA 79035
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»| Industry Update |«
Consolidation Service King Acquires Two North Texas Locations Service King Collision Repair Centers announces that it has acquired Collision Centers of Wylie and Rowlett in North Texas. Collision Centers of
Wylie and Rowlett have been owned and managed by Kirk Van Meter since 1980. Together, the two locations offer more than 30,000 square feet of shop
Two Southern California MSOs Merge Pacific Collision Centers and Elite Group Collision Centers have successfully merged and will be rebranded as Pacific Elite Collision Centers. The official rebranding began Feb. 4, 2014, bringing the total number of locations to 14 across Southern California. According to the company, the new name and brand will be consistent among all 14 shops to eliminate redundancies in branding and marketing efforts.
space and are capable of serving more than 400 cars per month. “The Van Meter family has built a great reputation in both of these communities over the past 34 years,” said Dan Michaelis, Service King Dallas-Fort Worth market vice president. “We look forward to continuing that great reputation by delivering the Service King standard of exceptional customer service and highquality repairs.”
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Caliber Collision Opens New Store in Wylie, Texas Caliber Collision Centers announced the grand opening of its new, 14,000square-foot facility in Wylie, Texas. Caliber now has 181 locations nationwide. “Our new Wylie center is our third advanced repair facility in North Texas with the latest innovations in collision repair including side load paint system technology for faster repairs, completely revamped lobby design for an industry-leading customer experience and onestop rental convenience with an on-site Enterprise Rent-A-Car facility,” said Steve Grimshaw, Caliber Collision CEO.
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»| Industry Update |« DeVilbiss Accredited as I-CAR Industry Training Alliance Provider DeVilbiss Automotive Refinishing announced that it has been accredited by I-CAR as an Industry Training Alliance provider of continuing automotive education to the collision repair industry. “We are excited to now offer our I-CAR accredited SprayMaster Paint Technician Class to the collision repair industry,” said Hans Horstik, DeVilbiss Automotive Refinishing general manager. “This course provides I-CAR accredited best practices and process improvement training to refinish technicians in Compressed Air Filtration, Contaminant-Free Refinishing, Paint Handling and Atomization.” The DeVilbiss SprayMaster Paint Technician Class provides students with four credit hours of I-CAR continuing education credits, and
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fulfills the I-CAR Refinish Technician ProLevel 1 “Spray Gun Maintenance & Set-Up” knowledge area. Students also receive EPA Rule 40 Certification.
SprayMaster training classes are held at certified training facilities and are provided at no charge as a service to the collision repair industry.
The Boyd Group Acquires Chicago-Based Collision Repair Shop The Boyd Group Inc. (the “Boyd Group”) announced that it has acquired a new location in Chicago, Ill. Previously operated as Crawford Auto Restoration, the repair center has approximately 26,050 square feet and now operates under the Gerber Collision & Glass trade name. “This repair center has served its neighborhood for over 50 years and will help us to further expand our market share in Chicago,” said Tim O’Day, president and COO of the Boyd Group’s U.S. operations. “We remain on track towards achieving our targeted growth rate of 6 to 10 percent through single store additions.” The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners should contact Kim Allen at (847) 410-600 for more information.
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»| Industry Update |«
ALLDATA Launches ALLDATA Community ALLDATA LLC has announced the launch of ALLDATA Community, an interactive, highly-responsive environment for technicians to use to help diagnose and repair vehicles faster. “Vehicles have become so technologically advanced that having access to accurate information is the best way a shop can succeed these days,” said ALLDATA President Jeff Lagges. “The more channels available to tap into for needed repair information, the better. When the clock is ticking, getting advice from an experienced technician can save the day.” ALLDATA states that ALLDATA Community features “easy, intuitive navigation and structured searches allowing technicians to view similar problems.” A search can tap the collective knowledge of up to 300,000 other technicians. Also, the ALLDATA diagnostic team, a group of ASEcertified technicians with more than 20 years of experience each, continually monitors ALLDATA Community traffic. Repair suggestions can be verified, ensuring the shop is using a solution that was previously successful. ALLDATA Community is included with ALLDATA Repair and ALLDATA Collision S3500 subscriptions at no additional charge. Technicians can also contribute answers, improving the viability of the collective knowledge base. “There are thousands of savvy technicians out there who are solving diagnostic and repair problems every day, and many of them are happy to help out their peers,” said Lagges. “When knowledge is shared, it’s a winwin for everyone and has a positive impact on the entire industry.”
Added ALLDATA Automotive Diagnostic Team Lead John Lee, “OEM manuals can take for granted that some diagnostic procedures are just understood.
Therefore, experience and knowledge-sharing are effective ways of getting to the root of many complicated vehicle diagnostic problems.”
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By the
Numbers Vital collision industry stats
When Making Collision Repairs, What Percentage Of The Time Do You: What Is The No. 1 Source You Use To Hire Production Personnel For Your Shop?
Replace With Used Parts
Replace With aftermarket parts
19%
Most Helpful Source
12%
50%
44%
45%
25%
40%
44%
35%
30%
25% 21%
Replace With New OEM Parts
12%
17%
20% Source: 2013 BodyShop Business Industry Profile
15%
Average Percentage Of Gross Sales Attributed To Parts And Labor
Other*
*�Other� are largely vendor referrals and tech centers. Source: 2013 BodyShop Business Industry Profile
Percentage Of Total Sales
5%
6% Other Shops
Newspaper Ad
Internet
Approximately What Percentage Of Your Sales Can Be Attributed To Parts And What Percent To Labor?
10%
0 Employee Referral
Repair The Damaged Parts
60%
40%
55% 41%
20%
0 % Attributed To Labor
% Attributed To Parts Source: 2013 BodyShop Business Industry Profile
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