Inside this issue - CollisionAdvice.com

Transcription

The End of Choice?: The Hard FAX on PartsTrader’s Latest Move - page 28
October 2013
Volume 7, No. 10
$5.95
www.wmaba.com
Inside this issue:
COUNTING DOWN TO SEMA
INSIDE OEM REPAIR PROGRAMS
THE GREATEST THREAT
TO YOUR SURVIVAL
www.grecopublishing.com
October 2013
3
4
October 2013
6
October 2013
34 COVER
STORY
KNOWLEDGE =
PROFIT:
CONTENTS
WMABA OPENS THE
ENCYCLOPEDIA OF
ESTIMATING
OCTOBER
Inside Mike Anderson’s
revolutionary presentation
in Springfield.
2013
BY JOEL GAUSTEN
LEGAL PERSPECTIVE
16 Resolving Complaints With Insurers Through
the Maryland Insurance Administration
Relief is available for consumers with insurer
complaints.
DEPARTMENTS
BY JAMES A. CLEAVER, SENIOR PARTNER,
LAW OFFICES OF ALEXANDER & CLEAVER
8
NATIONAL NEWS
18 Repairer Driven Education: How SEMA 2013
SCRS creates a can’t-miss schedule at the industry’s
biggest event.
Will Revolutionize Your Business
TECHNICAL FEATURE
OEM Collision Repair Programs
22 AInside
look at some things to expect when getting involved
with a manufacturer's network.
11
Editor’s Message
JOEL GAUSTEN
13
President’s Message
BARRY DORN
14
NewsFlash
17
Headliners
46
What’s WMABA Up To?
49
BY JEFF LANGE, PE & LARRY MONTANEZ III, CDA
50
Executive Director’s
Message
JORDAN HENDLER
Advertisers Index
PHOTOGRAPHS AND ART BY
NATIONAL FEATURE
28 The End of Choice? The Hard FAX on
PartsTrader’s Latest Move
Calendar of Events
Cover photo by Joel Gausten
State Farm makes new enemies over PartsTrader’s
decision on vendor choice.
THIS PAGE, CLOCKWISE FROM TOP:
©istockphoto.com/dem10
©istockphoto.com/combomambo
©istockphoto.com/iconeer
©istockphoto.com/derrrek
©istockphoto.com/alexskopje
BY JOEL GAUSTEN
October 2013
7
CALENDAR
OF EVENTS
Industry Training, Meetings
& Don’t-Miss Opportunities
FIND MORE RESOURCES & UPDATES
@ www.wmaba.com
November 5-8,
2013
SEMA SHOW 2013
Las Vegas Conven
tion Center, Las
Vegas, NV
For more inform
ation, visit www.s
emashow.com/sc
rs.com
No
vember 5, 20
13
SCRS OPEN MEET
ING – ASSOCIATIO
N ADDRESS
Collision Repair
& Refinish Stage
,
Las Vegas Conven
tion Center, Las
Vegas, NV
For more inform
ation, visit www.s
crs.com
November 6-7,
2013
COLLISION INDUS
TRY CONFERENCE
Las Vegas Hotel
, Las Vegas, NV
For more inform
ation, visit www.c
iclink.com
CLASS LISTINGS
October 1, 2013
STRUCTURAL STRAIGHTENING ALUMINUM
State Farm Insurance, Roanoke, VA
OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE
COLLISION REPAIR PROCESS
Virginia Farm Bureau, Lexington, VA
October 2, 2013
Coxton's Gold Team Collision Center, Yorktown, VA
October 7, 2013
VEHICLE TECHNOLOGY & TRENDS 2013
First Team Toyota, Chesapeake, VA
FULL-FRAME REPLACEMENT
Coxton’s Gold Team Collision Center, Yorktown, VA
October 8, 2013
RACK & PINION & PARALLELOGRAM STEERING SYSTEMS
MEASURING
Carquest Distribution Center, Winchester, VA
October 9, 2013
CORROSION PROTECTION
Hampton Inn Waldorf, Waldorf, MD
October 10, 2013
STEEL UNIBODY, A-, B-, C-, D-PILLARS & ROCKER PANELS
Frederick Co. Career & Tech, Frederick, MD
STEEL UNIBODY FRONT & REAR RAILS,
FLOORS & FRONT STRUCTURE
Priority Toyota, Chester, VA
October 12, 2013
DETAILING
Safford Collision Center, Winchester, VA
HAZARDOUS MATERIALS, PERSONAL
SAFETY & REFINISH SAFETY
Safford Collision Center, Winchester, VA
October 14, 2013
COLOR THEORY, APPLICATION, TINTING & BLENDING
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR
October 15, 2013
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES
STEEL UNIBODY FRONT & REAR RAILS,
FLOORS & FRONT STRUCTURE
Best Western Westminster, Westminster, MD
8
October 2013
October 17, 2013
October 21, 2013
October 23, 2013
AUTOMOTIVE FOAMS
REPLACING EXTERIOR ALUMINUM PANELS
October 24, 2013
BLUEPRINTING PROCESS & DAMAGE DISCOVERY
October 28, 2013
I-CAR HAZARDOUS MATERIALS, PERSONAL SAFETY &
REFINISH SAFETY
MEASURING
October 29, 2013
INSPECTING REPAIRS FOR QUALITY CONTROL
November 4, 2013
SQUEEZE-TYPE RESISTANCE SPOT WELDING
BEST PRACTICES FOR HIGH-STRENGTH STEEL REPAIRS
DAMAGE ANALYSIS OF ADVANCED AUTOMOTIVE SYSTEMS
Best Western Westminster, Westminster, MD
November 5, 2013
AUTOMOTIVE FOAMS
Carquest Distribution Center, Winchester, VA
STRUCTURAL STRAIGHTENING STEEL
November 7, 2013
VEHICLE TECHNOLOGY & TRENDS 2013
MEASURING
November 11, 2013
ALUMINUM INTENSIVE VEHICLE REPAIRS
STRUCTURAL STRAIGHTENING STEEL
November 12, 2013
REPLACEMENT OF STEEL UNITIZED STRUCTURES
November 14, 2013
STEEL STRUCTURES DAMAGE ANALYSIS
November 18, 2013
COLLISION REPAIR FOR HONDA & ACURA VEHICLES
STEEL FULL-FRAME TECHNOLOGIES & REPAIR
November 19, 2013
STEERING & SUSPENSION DAMAGE ANALYSIS
November 21, 2013
STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR
HAZARDOUS MATERIALS, PERSONAL
SAFETY & REFINISH SAFETY
November 25, 2013
COLLISION REPAIR OVERVIEW
FOR THE CHEVROLET CORVETTE Z06
PLASTIC & COMPOSITE REPAIR
www.i-car.com or
800-422-7872 for info
10
October 2013
Joel Gausten
(973) 600-9288
[email protected]
EDITOR’S MESSAGE
THE GREATEST
THREAT TO YOUR
SURVIVAL
After nearly 15 years covering this industry, I’m well aware of the obstacles you face
every single day in your business. If you’re a
shop owner, everything from cycle time to insurer pressure to dwindling parts profits gives you
a headache. If you’re a dealer, you’re faced
with maintaining profitability and efficiency while
staying competitive with other OEM locations in
your market and beating “alternative” parts
providers to the finish line. None of the problems are easy to overcome, and I respect and
sympathize with your ongoing frustration.
However, my travels all over the country on
behalf of this industry have enabled me to
uncover the single greatest enemy threatening
the future of your business: YOU.
That’s right. You’re most responsible for
any hassles facing your business. You’re the
reason you don’t get every penny you’re entitled to on a job. You’re the reason why outside
forces are slowly (and, in some cases, not
so slowly) taking over every aspect of your
operation.
How do I know so much about your problems, and what gives me the right to blame you
for them? The answer is simple: I don’t see you at the dozens of meetings I attend all over
America on an annual basis. I don’t see you sending your estimators to events like the one featured in this month’s cover story. I don’t see you caring enough about yourself to attend an
association meeting in your market area. I don’t see you doing anything.
I can’t tell you how many times I’ve stepped out of a hotel or conference center during a
break at a management/technical seminar, seen a body shop right across the street and wondered why nobody from that business took the time to walk over and learn something. If you
care this little about your business, how much do you care about your customers? Are you
learning about how new vehicle designs are forcing this industry to rethink its equipment needs
and repair practices? I bet you’re not, because I didn’t see you at that seminar, either.
Shops are overcapacity in most markets, and there just isn’t enough work for everyone.
Are you going to take the initiative to learn as much as you can to survive, or are you going to
read this message for the first time when you flip this magazine open while cleaning out your
desk after you go out of business?
If you’re a dealer, have you been doing all you can to make sure your parts customers
know everything they need to about the parts they’re buying? Are you helping them learn about
all those technologically advanced cars your sales department is putting out there in the market? If not, you are failing your client base, your employees and the future of your dealer’s
entire parts operation.
The days of polite requests for you to get involved are over. It’s time to either get up to
speed with your industry, or step aside and let the committed shops and dealers out there take
advantage of your opportunities. We simply can’t wait for you any longer.
I truly hope this message hit home to you, because you’re running out of time to ignore it.
H&D
2013 WMABA OFFICERS
PRESIDENT
VICE PRESIDENT
TREASURER
SECRETARY
IMMEDIATE PAST PRESIDENT
Barry Dorn
[email protected] 804-746-3928
Torchy Chandler
Don Beaver
[email protected] 443-539-4200 ext. 17061
John Krauss
Brad Whiteford
BOARD OF DIRECTORS
Rodney Bolton ([email protected]) 410-969-3100 ext. 250
Geoffrey Brown ([email protected]) 703-845-6475
Mark Boudreau ([email protected]) 703-671-2402
Kevin Burt ([email protected]) 301-336-1140
ADMINISTRATION
Daniel Morrissey ([email protected]) 443-938-2243
Mark Schaech Jr. ([email protected]) 410-358-5155
Bobby Wright ([email protected]) 434-767-4128
EXECUTIVE DIRECTOR
Jordan Hendler ([email protected]) 804-789-9649
WMABA CORPORATE OFFICE
P.O. Box 3157 • Mechanicsville, VA 23116
STAFF
PUBLISHER
MANAGING EDITOR
EDITOR
ART DIRECTOR
OFFICE MANAGER
ADVERTISING DIRECTOR
Thomas Greco
[email protected]
Alicia Figurelli
[email protected]
Joel Gausten
[email protected]
Lea Velocci
[email protected]
Brandi Smith
[email protected]
PUBLISHED BY TGP, Inc.
244 Chestnut St., Suite 202
Nutley, NJ 07110
973-667-6922 FAX 973-235-1963
Reproduction of any portions of this
publication is specifically prohibited
without written permission from the
publisher. The opinions and ideas
appearing in this magazine are not
necessarily representations of TGP Inc. or
of the Washington Metropolitan Auto Body
Association (WMABA). Copyright © 2013
Thomas Greco Publishing, Inc.
Norman Morano
[email protected]
800-991-1995 Fax 732-280-6601
October 2013
11
12
October 2013
PRESIDENT’S MESSAGE
FIND MORE ASSOCIATION UPDATES
@ www.wmaba.com
Equipping
Yourself and
Your Business
for the Future
With the constant and ever-changing landscape of
the collision repair industry, we all must keep in mind
that what is old is new again. Vehicles are going
through design changes (in some cases, every 120
days), and their compositions are becoming more and
more exotic. Using yesterday’s work practices on the
shop floor or in the office will only result in failure, liability issues or worse.
If we want to succeed, we have to keep investing
in our employees, both in internal and external training
and buying and upgrading our equipment. As an industry, we are famous for putting off needed training due to
cost constraints and time away from the business. Why
do we do this when we have so many economic and
effective tools at our disposal?
Keep in mind that it’s not only you who needs
training – your staff needs it too, now more than ever. I
see so many production managers, blueprinters and
other support personal unaware of - or not offered - the
ability to grow with the vehicles they work with. Not to
mention the technicians who desperately need to
understand and clearly comprehend what they are
working on.
Today, we have a great solution available to everyone: The SEMA Show in Las Vegas next month. You
cannot and will not find a better selection of classes
and training strictly for the collision repairer. These
classes are literally for everyone within your organization, from the owner/manager to your technicians and
office staff.
The WMABA-affiliated SCRS has really put together a really great schedule called RDE (Repairer Driven
Education) at SEMA, and I can tell you that these courses have really benefited
WMABA members at their businesses from the day they returned from the show.
You also have more than 1 million square feet of show space filled with the
newest equipment that you will need to stay in business and repair the vehicles that
are out now. As a business owner, you will have everything that you could want in
one convenient space. Bring your management staff. Send out that assistant who
has been showing he or she has a real passion for the business. Send the technicians who clearly show that they are always investing in themselves and striving to
do better.
Having attended the SEMA Show many times over the years, I can tell you that
it is well worth the trip. The amount of exhibitors and products available can be overwhelming; if you plan ahead, the experience will get you and your staff thinking of all
the possibilities that could be integrated into your business.
Think about it and try something different this year that will invigorate you and
your staff. Take an early step to start 2014 in a new and positive light. I look forward
to seeing you all in November at SEMA, if not before then at the next WMABA
meeting. H&D
October 2013
13
©istockphoto.com/kimberrywood
Barry Dorn
(804) 746-3928
[email protected]
NEWS
FLASH
Allstate Settles Labor Rate
Suits with FL Shop
On August 7, Allstate Insurance provided full payment to Gunder’s
Auto Center in Lakeland, FL to settle 12 pending lawsuits for short-pays on
Labor Rate differences, plus attorney fees and costs.
In June 2013, Allstate claims representatives Tom Travis and Greg
Ashley contacted owner Ray Gunder and requested a meeting to discuss
Allstate’s interest in bringing closure to the lawsuits that he had filed against
the nation’s second largest insurer on behalf of a dozen of his customers.
“I’m always open to communication in good faith,” explains Gunder.
“They were very forthcoming and candid about their personal feelings – as
well as their company’s feelings – on what I’ve been doing. They thought I
was doing the right things for the right reasons at the right timing. Within a
couple of days of them being out here and discussing the issues openly,
they settled all the cases.”
In July, Gunder’s was advised that Allstate would settle all 12 pending
lawsuits by paying the full Labor Rate and all related attorney fees and
costs. Full payments – ranging from $198.16 to $1,575.24 – were received
14
October 2013
on August 7. Allstate makes the 44th insurer to date that has agreed to pay
Gunder’s full Labor Rates and materials.
“I am very appreciative of the way this was handled by Allstate,” states
Gunder. “No one wants litigation; however, sometimes it is needed to get
disputes resolved. My hope is that this is truly a new way Allstate does
business nationwide and they speak to the entire industry with one voice.
Not all shops are the same; as such, they deserve to be compensated
based upon the quality of their service and offerings.”
Gunder says that only State Farm, USAA, Travelers and Progressive
currently refuse to pay his Labor Rate, but that Progressive is in the
process of making things right.
“Progressive has been negotiating with me in good faith and have
promised to move any day,” he says. “They’re the only company out of all
of them that actually has been in communication with me constantly.”
At press time, Gunder was in depositions with GEICO regarding a
series of suits he has launched against them over short-pay issues.
“My hope is that the insurance companies will understand and respect
our industry and where we need to go, and speak to all of us across the
country in one voice instead of pockets being treated differently,” he says.
In related news, State Farm filed a request with the Polk County Court
in Florida in late August to prevent Gunder from distributing information and
videotapes of depositions he obtained through discovery in his shop’s
breach of contract suit against the insurer to various industry representatives and members of the media. Gunder intends to fight any and all
attempts from the insurance industry to silence him.
“I will never quit sharing this journey,” he says. “I don’t care how much
fear they try to put into me and how much they twist my wording around. I
am not going to stop.” H&D
Conquest your Mitsubishi parts needs!
Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at
discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM
Suppliers category of popular collision estimating systems.
Ultra-Conquest Collision Parts Program Highlights:
•
•
•
•
•
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•
Discounted prices on quality new and unblemished OEM parts
Automated price and part selection in collision estimating systems
High parts availability
Delivery to most major U.S. cities within 24 hours
Available through all participating Northeastern area Mitsubishi dealers
Includes the majority of key collision components for select popular models
We can meet or beat aftermarket prices!
To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer.
For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers.
Fitzgerald Mitsubishi
1930 West Street
Annapolis, MD 21401
Direct: 410-224-4636
Fax: 410-224-4264
E-mail: [email protected]
Younger Mitsubishi
1945 Dual Highway
Hagerstown, MD 21740
Direct: 800-296-1190
Fax: 301-733-5465
www.youngermitsubishi.com
Malloy Mitsubishi
14655 Jefferson Davis Hwy
Woodbridge, VA 22191
Wholesale Parts Direct:
703-494-2014
Fax: 703-494-1792
[email protected]
Buy Genuine Mitsubishi Parts and get the perfect fit at the perfect price.
10% off on all parts orders when you mention this ad.
October 2013
15
BY JAMES A. CLEAVER
LEGAL PERSPECTIVE
Senior Partner, The Law Offices of Alexander & Cleaver
16
RESOLVING COMPLAINTS WITH
INSURERS THROUGH THE MARYLAND
INSURANCE ADMINISTRATION
Undoubtedly, much of WMABA’s business is paid for by motor
vehicle insurance. Either your customers utilize their collision coverage, or the other driver’s liability insurance company pays for the
repairs.
The second type of transaction is much more likely to create
strife and disagreement than one that is limited to the auto body
shop and customer. In the first arrangement, you meet with the customer, inspect the damage and estimate the repairs. The customer
is best able to understand the work involved, the process and the
costs.
The dynamic can and often does change dramatically when
you introduce a third party, the insurance company, into the transaction. They may not agree with you and the customer on any number
of things – the scope of the work, the costs of the parts and/or labor,
etc. Your customer becomes disillusioned and may unfairly blame
you for his or her unfulfilled expectations.
The Maryland Insurance Administration will investigate and may
take appropriate action on behalf of anyone dissatisfied with an
insurance company.
October 2013
Once a complaint is filed with the Maryland Insurance
Administration (MIA), they will investigate in order to determine if the
insurance company has violated state law, regulation or order in its
dealings with the complainant. They can compel the insurance company to produce accounts, records, documents, files, logs, photographs or other information necessary to complete their investigation. The MIA has broad power to enforce state law.
A complaint can be filed either by a written letter or by going to
the MIA’s website and filing a complaint online. Finally, the MIA has
a “Rapid Response Program” to help Maryland residents resolve
these disputes directly with the insurer. H&D
James A. Cleaver is the senior partner of the Law Offices of Alexander & Cleaver.
Jim co-founded the firm in 1984 with Gary R. Alexander. He works primarily in the
field of civil litigation, heading up the firm's personal injury practice. In that role, Jim
is the firm's primary negotiator and litigator in personal injury cases, using his vast
experience and knowledge acquired over parts of the past five decades to achieve
results for clients. Jim has been designated a Super Lawyer in personal injury
cases, was named one of Maryland's top trial lawyers and was selected by the prestigious Million Dollar Advocacy Forum. He can be contacted at (301) 292-3300.
HEADLINERS
The Latest News & Notes
MONTANA
TECH DIES IN
SHOP FIRE
Photo credit: NBC Montana/Aaron Hall
A tragic work-related event has cost
a 44-year-old collision repair technician
his life.
Bruce Hall, an employee of Rick’s
Auto Body in Missoula, MT, died on the
morning of August 20 at Harborview
Medical Center in Seattle from a vapor
explosion caused by lacquer thinner that
ignited from a static charge in a car bay at
the back of the shop the day before.
Speaking with NBC Montana on
August 20, Hall’s sister Laura remembered her brother as a generous man
who went out of his way to help others.
"For instance, next week he was
going to take a week of unpaid vacation
to drive a friend of his to Minnesota for a
family issue," she said. "That's just the
kind of person he was."
"He was definitely one of the most
kind people that you'd run in to," added
Hall's son Aaron in the NBC Montana
report. "He could definitely see the positive in people, even if other people couldn't."
Shop owner Rick Booth told the
Missoulian that the entire shop is devastated by Hall’s death.
“It’s a tragedy,” he said. “It’s not what
we expect to have happen when we come
to work.”
On August 29, Missoula Fire Marshal
Gordy Hughes told the Missoulian that the
explosion was a “misfortunate accident,”
adding that Rick’s Auto Body was “not
negligent as far as the fire department’s
perspective.”
A second employee suffered burns
from the incident and was later released
from the hospital. Minimal damage was
done to the shop; the Occupational
Health and Safety Administration (OSHA)
was still investigating the incident at press
time.
The Montana Collision Repair
Specialists has set up the Bruce Hall
Memorial Fund to assist his family. Please
make your check out to “Montana
Collision Repair Specialists” and designate “Bruce Hall Memorial” on the check.
H&D
Mail your donation to:
Montana Collision Repair Specialists
1000 Silurian Lane
Sidney, MT 59270
October 2013
17
NATIONAL
NEWS
Repairer Driven Education:
Information and Updates
from WMABA and Beyond
How SEMA 2013 Will Revolutionize Your Business
It’s time to take your
business into the
future.
On November 5-8, the annual SEMA
Show will again hit the Las Vegas Convention
Center. For nearly a week, more than
130,000 automotive industry professionals
from around the world will gather for the
most-anticipated event of the year.
And WMABA will be there.
This month, Hammer & Dolly takes a
look at a few of the many ways SEMA will
make your business stronger and more profitable.
Driving Education Forward
For the fourth year running, the national
collision repair industry will boast a healthy
presence at SEMA thanks largely to the continuing efforts of the Society of Collision
Repair Specialists (SCRS), who work diligently to shape and tailor Show offerings and
events to best serve their affiliate membership. WMABA is one of many state groups to
benefit greatly from SCRS’ activities at SEMA
and beyond.
“Our affiliation with SCRS gives us the
ability to collaborate with associations across
the country about issues concerning all of us
locally and nationally,” explains WMABA
President Barry Dorn. “WMABA and SCRS
provide a way for all repair professionals to
say what needs to be said in one collaborative voice.”
SCRS also provides a way for collision
repairers to easily embrace the finest education available in today’s industry. Always looking for new and exciting ways to provide
value to attendees, the SCRS Board of
Directors developed this year’s Repairer
Driven Education (RDE) series to address
three distinct tracks – “Understanding Your
Business,” “Positioning Your Business” and
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October 2013
“Enhancing Your Business” – based on feedback from members who had attended past
SEMA Shows.
“Our goal all along has been to be
receptive to the people who are attending and
make sure that the program reflects what
they’re looking for most,” explains SCRS
Executive Director Aaron Schulenburg. “We
received an email from an attendee who said,
‘SEMA’s awesome, and RDE is amazing, but
the industry needs education so compelling
and focused on the issues we face day-today that shops can’t afford to miss it.’ When
they said that, they weren’t referring to a specific speaker or a person; they were really
referring to subject matter that delivers exactly what shops have to know right now and
focuses on the trends that are constantly
evolving and re-shaping the industry. From
that, we formulated our tracks.”
While following individual tracks will offer
a strong educational experience, Schulenburg
notes that the RDE schedule is also structured to be used a la carte.
“The tracks are not restrictive,” he says.
“You are not required to follow them; they
basically just categorize sections that we’re
offering. For example, anybody who wants to
attend the classes in the ‘Positioning Your
Business’ track but really likes a class from
‘Enhancing Your Business’ can deviate out of
the track.”
Naturally, this kind of trade show environment has led to continued – and deeply
enthusiastic – support from vendors eager to
take advantage of the action inside the Las
Vegas Convention Center. As of July, RDE
registration was up nearly 350 percent from
the same time last year, while vendor participation was up a stunning 250 percent over
last year. This has resulted in display space
extending into the neighboring Las Vegas
Hotel for the first time.
“Vendors want to be where the buyers
are,” Schulenburg offers. “The beauty of
SEMA is that it’s a playground of possibilities.
Buyers are there, collision repair shops are
there and people who are making decisions
for collision businesses are there because
there is so much opportunity available to
them. Vendors want to be there because it is
one of the very few growing, thriving areas
where they can get in front of an attendee
base more massive than anywhere else in
this country at any other time throughout the
year.”
“You can't find that amount of relevant
exhibitors or collision-relevant training anywhere else, period,” adds Dorn. “Also, you
can experience additional profit centers that
exist at SEMA that may not exist in your
stores. Repairers need other sources of revenue, and SEMA has it all in one location.”
In addition to the RDE tracks, SCRS’
plentiful SEMA schedule includes free 10amnoon classes presented by the SCRS
Education Committee, the Thursday Night
SCRS RDE Sky Villa After-Party and participation in the latest Repairer Roundtable and
Collision Industry Conference (CIC). Among
these highlights stands the SCRS Open
Meeting – Association Address on November
5, which will provide attendees a rare and
unforgettable opportunity to witness part of
the SEMA Show floor after hours (5:30pm7:30pm) without the crowds.
“While in the education sessions you’re
learning about how to better your business
and how to address things in your business to
make yourself more profitable or marketable,
the SCRS Open Meeting is more of an opportunity to learn about the hard work that’s
going on to address industry issues that are
having an outside influence on your business,” Schulenburg says. “You go to the
classes to identify a game plan to address
issues internally, and you go to the SCRS
Open Meeting to learn what is being done
at an industry level to address issues from
outside of your business.”
Photo credit: www.semashow.com
The WMABA Edge
As any first-time SEMA attendee learns
the moment he or she walks into the Las
Vegas Convention Center for the first time,
SEMA is a breathtaking – and often overwhelming – experience. While there is an
almost unending supply of new experiences to
be had on the Show floor, SEMA 2013 will also
provide WMABA members with plenty of familiar faces to help guide them through the week.
WMABA members who have enjoyed
reading Larry Montanez’s hard-hitting technical
features in Hammer & Dolly over the years will
be able to experience his no-nonsense personality and presenting style live on November
5, when the New York-based repair expert
presents a “Damage Report Writing Case
Study.” During this intense two-hour seminar,
attendees will follow along with case studies
on a quarter panel replacement, bumper fascia
replacement and cosmetic damage to the body
side components of a vehicle. All required procedures, additional procedures, materials,
included, non-included and additional items
will covered through this study. Participants will
leave the course with a greater understanding
of the P-Pages, a clearer idea of how to calculate certain procures (featheredge/prime/block
sand, blending, buffing and glazing, etc.) and a
stronger sense of how to apply OEM procedures in the database system.
“Estimate writing is one of the most difficult processes in today’s auto body industry,”
20
October 2013
opines Montanez. “Unfortunately, most of the
people who write estimates have no clue of
vehicle construction, absorption, management
of collision energy and even substrate construction. That’s both on the repair side and
the insurance company side.”
Another longtime WMABA presenter, Tim
Ronak of AkzoNobel Performance Coatings,
will be at SEMA to oversee two special presentations and co-present a third. The first,
“The Future of Cars: Self Driving Cars - Fact
or Fiction?” will be held on November 5 and
explore how technologies ranging from passive accident avoidance to complete
autonomous vehicle operation could soon
transform the collision industry in major ways.
Ronak’s second presentation, “Competing in a
Consolidated Marketplace,” is set for
November 6 and will focus on current consolidation activity within the collision industry.
Participants will leave with an understanding of
what’s going on with consolidation – and
intriguing insight into how to survive it.
“People are looking at, ‘How do I get out
because I can’t compete?’ and yet the marketplace is littered with examples of where people
have not only survived consolidation in their
markets, but have thrived in them,” offers
Ronak. “You just need to look at some of the
drugstore chains and local coffeehouses.
Starbucks came along and dominated the
coffee market, and yet we still have startups
and little boutique coffee houses doing very,
very well.”
Ronak’s presentation schedule concludes
with “Collision Center Parts Management,” a
November 7 seminar (co-presented by
AkzoNobel’s Scott Wheeler) that will offer a
detailed review of perhaps the greatest
expense your repair business encounters –
parts. This course will focus on how to minimize cycle time-related delays due to incomplete or poorly processed parts orders that
cause harm to a shop’s workflow.
Longtime industry advocate, past
Hammer & Dolly contributor and noted attorney Erica Eversman (Vehicle Information
Services) returns to SEMA on November 7 to
preside over “Succession Planning: Is Your
Shop Ready for the Next Generation?” This
afternoon presentation will offer insight into the
often-uneasy topic of estate planning. What
happens when a business owner unexpectedly
passes away? What kind of questions should
you ask your corporate or estate planning
attorney to ensure that your business is prepared for a transition? How can you best communicate these issues with employees and/or
loved ones? All will be answered in
Eversman's special presentation, designed
exclusively for the SEMA Show based on her
years of experience dealing with estate planning and probate matters.
“You have to honestly evaluate your business,” she says. “If you have family involved,
you have to evaluate their relationships with
employees – and each other. These are things
that aren’t always pleasant to do…The people
you say you love are already going through so
much grief, aggravation and difficulty at that
point just trying to cope with the fact that
you’re not there anymore that the last thing
they need is to have a huge mess dumped on
them.”
Eversman recommends that attendees
have a good think about their businesses –
and themselves – prior to walking into her
presentation.
“Write down what your business currently
is,” she advises. “Are you a $1 million-a-year
shop with five employees, or are you a
$250,000-a-year shop with one employee? Get
a sense of how many people work with you,
put down your business parameters and
identify if you have family involved. That’s the
kind of stuff that will become critical in the
conversation.”
Executive Director’s Thoughts
The level of excitement during the SEMA show feels like a static charge. The
buzz of that many people in one place, and the expectation to find something
new, is nearly palpable. It’s really an atmosphere that breeds change.
There are opportunities at every turn for repairers to improve themselves and
their businesses. Between the SEMA Show floor and SCRS’ Repairer Driven
Education, it’s easy for the return on investment to be found by any repairer from
any type and size of shop. Many WMABA members attend events each year, and I
have yet to meet one who has felt they wasted their time here.
If you feel stuck in a rut or like the grind is getting you down, then take the
time and initiative to make a difference in yourself. Expand your thinking by
attending the courses offered and finding out what kinds of opportunities for
positive change truly exist there.
The Vegas Advantage
With the lead up to SEMA 2013 already
producing a level of energy and excitement
that surpasses the anticipation felt with past
events, many collision repairers in the WMABA
region are gearing up to make the trip to Las
Vegas for an experience they simply can’t get
anywhere else.
“There is no better tool in our toolbox than
being informed,” Schulenburg offers. “From my
travels around the country, one of the biggest
challenges I see with most shops is they simply don’t inform themselves enough about the
issues. The Washington Metropolitan market
does a great job of seeking out information
because they have such a great resource with
WMABA. But at a local level, you can’t replace
the energy and opportunity that exist when you
put 130,000 people in a convention center with
every possible opportunity at their fingertips.”
Not surprisingly, Ronak joins Schulenburg
in urging his friends in WMABA to see for
themselves what this special event in Vegas
has to offer.
“In order to survive, shops need to educate themselves,” he says. “The only way
they’re going to know which path to pick is to
be able to educate themselves on the available options. In order to find that out, they
have to come to SEMA.”
A complete schedule of RDE classes (and
registration information) is available at
www.semashow.com/scrs. More information
on the Society of Collision Repair Specialists
(SCRS) is available at www.scrs.com. H&D
October 2013
21
©istockphoto.com/iconeer
TECHNICAL FEATURE
INSIDE OEM COLLISION
REPAIR PROGRAMS
22
Fifteen years ago, there was only one mass-produced aluminum-intensive vehicle: The 1997 Audi A8. (The vehicle arrived
in the US for the first time in October 1996, although the vehicle
debuted in 1994). There were no hybrid electric vehicles (except
for the Panzo Q9 Hybrid race car), and Mercedes-Benz and
Toyota were the only manufacturers with OEM-supported collision
repair programs. Ultra-High Strength Steel was used only for
bumper reinforcements, and boron was just an element on the
periodic table. Well, welcome to the collision repair industry in
2013, where everything has drastically changed.
The following original equipment manufacturers (OEMs)
have sponsored Collision Repair Network Programs:
Aston Martin
BMW, Mini, Rolls Royce
Chrysler, Dodge, Jeep, Fiat*
Ferrari
Ford, Lincoln
GM (Buick, Cadillac, Chevrolet, GMC)
Honda, Acura
Jaguar, Land Rover*
Mercedes-Benz, Sprinter, Smart
Nissan, Infiniti
Toyota, Lexus, Scion
Volvo
VW, Audi, Porsche, Bentley*
(*Coming Soon)
The above programs were created for a multitude of reasons, but the main motivator was to ensure quality, customer satisfaction and brand loyalty. As vehicles became more technologically advanced (not only with comfort features such as GPS,
online access, heated/cooled seats and more, but also with
advanced structural substrates and advanced smart airbag systems), OEMs listened to the concerns from their consumers about
collision repairs and quality. If a new vehicle was involved in a collision and the owner went to the dealer that sold them the car to
have it repaired, the dealer would then get the vehicle fixed at
either their own shop or a shop with whom they had a relationship. Prior to the repair program, there were many cases where
vehicles were repaired with aftermarket or used parts; in some
cases, components were fixed that should have not been
repaired. For example, we once had a case where a 2008 BMW
E60 (535xi) was involved in a frontal collision. The repair facility
pulled and repaired all the frontal damage, including damage to
the aluminum front structural components. The vehicle literally
broke in half at all the repaired areas due to work hardening from
normal driving (approximately 1,000 miles after repairs were comOctober 2013
pleted). This case was a prime example of why training and education are needed and why OEMs had to step up and provide
repair recommendations. Additionally, I-CAR was offering classes
on the new advancements in vehicle construction and electronics
15 years ago – and shop owners, technicians and insurance personnel were clueless on how to repair these vehicles. Remember
the whole scare over hybrid vehicles due to the unknown procedures?
Over the past 10 years, more and more OEMs have established Collision Repair Network Programs. Although these programs were created to ensure the quality of repairs for customer
satisfaction and brand loyalty, some OEMs were required to create programs due to the complexity of their vehicles. At the same
time, these OEMs started to produce position statements and
required repair procedures to explain why new original equipment
replacement components, sectioning locations and repair procedures should be used to repair their vehicles. These papers were
created due to the response to the poor quality of repairs the
dealers were seeing (which resulted in voided warranties), issues
with lease returns due to poor quality of repairs and/or aftermarket
parts usage and the whole CarFax issue. As time has passed,
the OEM Collision Repair Programs have become more and more
technical, with some requiring very specific welding tests.
The OEM Collision Repair Programs require some or all of
the following:
Specific structural repair equipment
Specific MAG (steel) welders
Specific MIG (aluminum and silicon bronze) welders
Specific STRSW (Squeeze Type Resistance Spot) welders
Specific glass, cutting, reshaping, riveting and OEM model tools
Specific I-CAR training classes
Specific I-CAR welding qualification tests
Additional OEM specific welding certification tests (ISO tests)
Specific OEM general and model-specific hands-on training classes
Specific OEM online training courses
ASE certification for each structural, non-structural and refinish
technician and estimator
To be on an OEM program, it is generally required that you
have a good relationship with a dealer, as dealer sponsorship is
required with most of them. This can be a very lucrative relationship for both the repair facility and the dealership. The dealer
sends customers to the repair facility, and the repair facility purchases more OEM replacement parts as a result. Every one of
these programs require new OEM replacement parts only.
For the past few years, some shops have not purchased
OEM replacement parts due to a variety of reasons (such as
a DRP agreement, the insurance company saying no and the percentage of profit from aftermarket). Not using original parts has been the
root cause of multiple issues with lease return vehicles and used car
sales for the OEMs. This has also resulted in consumer dissatisfaction
and is most likely the main reason why the OEMs developed these
programs.
To go on a program or not? That is an excellent question. The first
thing a shop owner must do is evaluate his or her business by asking
the following questions:
Are my technicians older and near retirement (not willing to train)?
What does my shop look like? Is it modern and clean with a
comfortable waiting room?
Is my equipment modern and up to date?
Do my technicians have any training?
Do I have the space or property to quarantine off a specific
repair area?
What is my financial situation? Can I afford the initial and
further investment?
Can I afford the rigorous ongoing training requirements and
investment?
Can I keep my trained and certified technicians employed at
my facility?
Can my facility pass an on-site audit and inspection by the
OEM consulting company?
What would my return on investment (ROI) be?
Do I have any relationship with a dealership(s)?
As you can see, there are a lot of questions you must ask yourself
prior to making a commitment to try to get involved in an OEM repair
BY LARRY MONTANEZ III, CDA
& JEFF LANGE, PE
program. Please keep in mind that some OEMs require specific curtains
to quarantine off the repair area, or even a completely separate building
(usually for aluminum repair). Additionally, many OEMs have a two-tier
program, one for steel vehicles and another for aluminum-intensive
vehicles. Some of the programs offer training courses for free (with the
facility owner only paying for travel and lodging expenses), while
others require the facility owner to pay for the course and associated
expenses.
Here is something else you need to consider: Can you afford to
have that trained technician be away from the shop for training?
Training courses can go for days at a time; there are a few that are two
weeks long. Another thing to consider is these training programs are
offered in only certain locations throughout the United States. Plane
travel and driving sometimes adds a day or two to the overall amount of
time the technician will be absent from the facility. Additionally, there
might be the expense of a car rental, parking fees or taxi service for the
trip – and you have to feed the technician(s) while they are away at
training. Some OEM programs have annual membership fees, training
requirements and online OEM repair information access. Although some
include those items, each program is different.
What can you expect if you get involved in an OEM repair program? You should see an influx of new customers, (in some cases)
higher Labor Rates, better CSI through assistance from the OEM training programs on customer service procedures and a more exclusive
continued on pg. 38
October 2013
23
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October 2013
October 2013
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October 2013
27
NATIONAL FEATURE
THE END
OF CHOICE?
The Hard FAX on
PartsTrader’s
Latest Move
It’s getting harder and harder
to give PartsTrader a chance.
Since first announcing its partnership with
the parts procurement provider, State Farm
has urged members of its national Select
Service DRP network to keep an open mind
when it comes to utilizing the program on
the shop floor. Along the way, one of
the insurer’s major selling points was
that PartsTrader allowed shops to
order parts from the vendors of their
choice. Unfortunately, the smoke is
moving away from the mirrors and
a clearer – and considerably less
encouraging – picture is beginning
to appear.
28
October 2013
©istockphoto.com/Lordivanhoe
by Joel Gausten
In an email to their Arizona-based Select
Service facilities, PartsTrader Support
announced that beginning August 1, suppliers
that had not yet begun to use the PartsTrader
application as "a fully active participating supplier" would no longer appear on the system
as an available vendor, and therefore will no
longer be able to receive orders placed
through it. The outcry from the national collision repair industry was immediate. On August
12, the Alliance of Automotive Service
Providers of New Jersey (AASP/NJ) – easily
one of the most outspoken groups against the
PartsTrader concept – offered their views on
the change in a scathing (and heavily distributed) press release.
"Are we surprised by this?" asked
AASP/NJ President Jeff McDowell in the
release. "Hell, no. We have been expecting
these kinds of changes from the start. This
program is all about control and money and
taking both of those things away from the shop
owner. What we are surprised about is how
quiet the industry has gotten since this was
first implemented. Back then, there was widespread outrage, but State Farm waited it out
like we knew they would. Now, with what
seems like little resistance from our industry,
they are steamrolling through states and
changing the rules in their favor as they go. It's
only going to get worse."
In his organization’s August online membership newsletter, Indiana Autobody
Association (IABA) Executive Director Tony
Passwater offered some of the most vitriolic
words ever publicly spoken against the State
Farm/PartsTrader union:
It seems that as a result of the Chicago rollout not
going as well as planned, State Farm and PartsTrader [have] upped the ante, and made a complete
reversal of the "promises to the industry" including
that, "Repairers will continue to have the ability to
decide which suppliers and part types they use”…I
guess it has become apparent that State Farm and
Parts Trader are just common liars, and what they
have stated will change if their results aren't as
expected. It has also become clear State Farm is
abusing their power over the industry to take further
control driven by increasing their profits and show
no respect to our industry or their policyholders.
It is no real surprise that Passwater is so
vehemently against PartsTrader’s latest move:
According to an August 19 update on the
official PartsTrader website, Indiana will join
Michigan, Wisconsin, Illinois, Ohio, Kentucky
and Tennessee in being the next wave of
states to full under PartsTrader’s control. If this
plan goes through, the total number of states
using the program will likely be 14 by the time
you read this article.
Taking on the Bully
On August 28, the Mississippi Collision
Repair Association (MSCRA) and dozens of
collision repair facility operators, OEM dealers
and other parts suppliers filed a lawsuit in the
Hinds County, MS Chancery Court against
State Farm Mutual Automobile Insurance
Company and PartsTrader LLC requesting the
following:
A declaratory judgment or other appropriate
decree that the defendants are operating against the
1963 Consent Decree, and that their Select Service
agreements are “void and unenforceable” as a result.
A preliminary injunction against the defendants,
prohibiting them from proceeding “with the forced
implementation of the PartsTrader program.”
A declaratory judgment or other appropriate
decree that State Farm “can no longer interfere in
the contract between the customer and the body
shops by causing or implying delay in service
payments, appraisal or limitation on the usage of
rental automobiles.”
John Mosely, president of MSCRA and a
plaintiff in the suit, fears that the continued
application of PartsTrader will eventually lead
to the greater use of aftermarket parts
throughout the industry.
“We see [PartsTrader] as State Farm’s
way to get back into the aftermarket parts
business and not have their handprint on
it…State Farm is telling us that we have to be
a part of a program that is designed to get
those parts put on our customers’ cars,” he
says. “Any time the parts on a job are determined by the cheapest parts available, we call
it ‘a race to the bottom of quality.’ It’s not fair to
put us in that position with our consumers.”
The MSCRA’s decision to jump into the
legal pond with such a large shark came after
months of critical research into PartsTrader’s
effect on other markets.
“What really fired us up and got our association back strong again was the threat of
PartsTrader coming to Mississippi,” recalls
Mosely. “We had our neighbors in Alabama
come over and speak to us at our first reorganized association meeting. When they started telling us what [PartsTrader] was about and
the consequences of not being willing to do
PartsTrader, we knew we had to do
something.”
If successful, the Mississippi suit will
show the world that the 1963 Consent Decree
has merit in the modern world. In 1963, the
United States Justice Department (under the
direction of Attorney General Robert F.
Kennedy) brought an action seeking to enjoin
insurance companies from fixing, establishing,
maintaining or otherwise controlling the prices
to be paid for the repair of a damaged vehicle.
The suit was resolved prior to trial through the
signing of a Consent Decree by the major
insurance trade associations at the time; combined, these groups represented approximately 265 insurance companies.
The Consent Decree established that the
insurance company defendants were not to
place into effect any plan, program or practice
which had the purpose or effect of:
Sponsoring, endorsing or otherwise recommending any appraiser of damage to automobile vehicles;
Directing, advising or otherwise suggesting that
any person or firm do business or refuse to do business with (a) any appraiser of damage to automotive
vehicles with respect to the appraisal of such damage, or (b) any independent or dealer-franchised
repair shop with respect to the repair of damage to
automotive vehicles;
Exercising any control over the activities of any
appraiser of damage to automotive vehicles;
Allocating or dividing customers, territories, markets or business among any appraisers of damage to
automotive vehicles; and
Fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage to automotive vehicles, or to be charged by
independent or dealer-franchised automotive repair
shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection
therewithin, whether by coercion, boycott, or
intimidation or by use of flat rate or parts manuals or
otherwise.
October 2013
29
30
October 2013
Mosley is one of many repairers who
feels that the 50-year-old document is deserving of a critical look in a modern context.
“[The Decree] has been talked about in
our industry a lot, but now we have folks who
are bringing it back to the light and actually
have people in government looking at it to see
if this is not still as enforceable today as it was
the day it was signed,” he says.
John Eaves, Jr., the plaintiffs’ attorney,
believes the suit makes it clear that a shop’s
primary commitment should always be to the
vehicle owner.
“The body shops have a duty and a
responsibility to the customer to provide a
safe, proper repair,” he says. “State Farm, by
the application of this program, is trying to
force these body shops to breach their fiduciary duty to the customers.”
Eaves warns that State Farm’s activities
with PartsTrader could have a negative effect
on non-Select Service shops as well.
“State Farm controls twice as much volume as any other insurance company in the
state of Mississippi,” he says. “Whether
you’re on the DRP program or not, they are
influencing the market. A lot of times, they go
to non-Select Service shops and say, ‘Well,
this is all we’re paying our Select Service
shops. We’re not going to pay you anything
more.’”
On August 29, State Farm spokesperson
Roszell Gadson issued the following statement
regarding the case: “State Farm recently
received notice of a lawsuit in Hinds County,
MS related to our electronic parts ordering initiative and our Select Service program. We
believe the suit is without merit. We intend to
vigorously defend the suit.”
Speaking with Hammer & Dolly shortly
after filing the suit, Mosely made it clear that
he is ready and willing to handle the long legal
road ahead.
“We don’t think that any court or judge will
say that this is good for society, and we’re
depending on the legal system to do the right
thing,” he said.
Life After PartsTrader
In the 18 months that Hammer & Dolly
has investigated and reported on the
PartsTrader issue, we have encountered our
fair share of shop owners who were reluctant
to reject State Farm’s project out of fear that
they will be dropped from their Select Service
agreements. In late July, such a reality hit
Sewell Lexus in Dallas, TX when they were
dropped from Select Service after saying no to
PartsTrader. According to Body Shop Director
Jim Sowle, Sewell’s decision to not embrace
PartsTrader came after State Farm failed
to adequately answer many of their
questions about the program’s strengths and
weaknesses.
“We kept asking, ‘Where is the efficiency
gain for us? What is the ‘win’ for us - or the
customer, for that matter?’” Sowle recalls.
“That never really got answered; it was more
of, ‘Why don’t you just try it?’”
In Sowle’s mind, PartsTrader was little
more than a solution looking for a problem.
“In 11,000 purchase orders this year to
date, we’ve had a one-day cycle time on filling
[them],” he says. “I don’t have an OE supply
chain problem. When I looked at integrating
PartsTrader into that as a third party, it really
added layers of additional administrative
issues.”
continued on pg. 43
October 2013
31
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October 2013
October 2013
33
KNOWLEDGE =
PROFIT:
WMABA Opens the
Encyclopedia of
Estimating
by Joel Gausten
On August 22, the lives of
dozens of WMABA shop owners
changed forever.
As a way to provide refreshing perspectives on
longstanding industry issues, WMABA welcomed leg-
endary industry speaker Mike Anderson for “The
Encyclopedia of Estimating Practices,” a day-long seminar at the Springfield Hilton that offered attendees new
ways to think about their businesses and their potential
for success.
One of the industry’s most recognized figures,
Anderson first gained attention as the second-generation owner of Wagonwork Collision Centers in
Alexandria, an extensive operation known as a trend-
setter in the region. Along the way, he was heavily
involved in the WMABA Board of Directors and local
events like the annual SkillsUSA competition. In 2010,
he sold his repair business and launched
CollisionAdvice (www.collisionadvice.com), an industry consulting firm. Known throughout the industry as a
top-notch speaker, Anderson currently spends more
than 300 days on the road each year, helping shops
and associations improve their chances of success.
Presenting to shops in the WMABA region for the
first time since 2007, Anderson offered nearly eight
straight hours of high-energy facts, insights and opinions that kept attendees riveted throughout the day.
Early in the presentation, he made it clear that his
©istockphoto.com/da-kuk
Mike Anderson offered unique views on the
industry during his August 22 seminar in
Springfield.
34
October 2013
seminar was meant to help all shops – regardless of where they stood
on the DRP issue. During his Wagonwork days, Anderson built a reputation for operating without any referral network business and charging
customers the difference when a pay dispute with an insurer came up.
But after seeing so much of the national industry in his travels,
Anderson has developed a new perspective on the DRP issue.
“Since I’ve sold my shops, my attitude has changed,” he revealed.
“I’ve seen some non-DRP shops that do horrible repairs. I’ve seen DRP
shops that do very good repairs. I’ve learned not to judge somebody by
whether they’re DRP or non-DRP, and I don’t judge them on whether or
not they use aftermarket parts. My bar that I judge people by now –
right, wrong or indifferent – is, ‘Do you do quality work?’ If you can do
quality work as a DRP, it’s not my place to judge you on how you provide to your family.”
With that foundation established, Anderson moved on to present
an intriguing “state of the industry” report that offered insight into how
the collision repair field has changed in recent years. For example,
there were 36,529 shops in the United States in 2005 and only 33,845
body shops in 2010. According to him, cash flow is the number one reason why shops are closing in 2013.
“The bottom line is, they closed their doors because they overextended themselves and didn’t manage their cash,” offered Anderson,
who added that some older owners are closing due to a reluctance to
invest in new technologies.
Anderson reported that 26 percent of all vehicles repaired in 2012
were customer-pay, up from around 15 percent in 2005. Anderson reasoned that this increase in customer-pay jobs was the result of drivers
taking out insurance policies with higher deductibles. Additionally,
Anderson noted that 63 percent of people who have a car seven years
or older are only carrying liability insurance. Based on these factors,
Anderson stressed that attendees need to find ways to understand,
embrace and address these realities in their businesses.
“You cannot just be an estimator anymore,” he said. “You have to
be a good salesperson and be able to give the customer a very good
experience.
“Statistics have shown that the average person has an accident
every 10 years,” he added. “When you fix a customer’s car, they will forget the [owner’s] name after six months and the name of the shop after
a year. After 18 months, they forget where you’re located. We need to
find a way to keep our name out there in front of them so when their
neighbor or co-worker has an accident, they still know who we are.”
In addition to advising attendees to avoid saying things like “lifetime warranty,” “certified technicians” and other phrases that everybody
uses when trying to market their businesses, Anderson urged members
to instead consider offering various levels of repair.
“The shops I see that are thriving – not just surviving – understand
the premise of good/better/best options,” he explained. “They understand that when people are paying out of pocket, they may not want
‘perfect.’
“I’m not suggesting we do unsafe repairs,” he added. “I’m just saying that in these economic times, we have to be able to asses that customer when [he or she] comes in with needs in the front end.”
On a positive note for dealers, the number of locations with inhouse body shops has steadily rebounded since dipping between 2008
and 2010. However, this upswing might spell trouble down the road for
independent shops that currently serve as dealer repair facilities.
“If you are an independent body shop relying on a dealership to
keep you busy, don’t get too comfortable on that because that could
Mike Anderson performed a special ASTech test on John Krauss’ 2012 Infiniti outside the Springfield Hilton.
October 2013
35
WMABA Executive Director Jordan Hendler urged attendees to
encourage their fellow members to attend future WMABA events.
change,” Anderson cautioned, adding that shops should always be
equally prepared for a loss of DRP business if an insurer decides to
move in a different direction.
“The whole purpose of being a DRP is to build your clientele,” he
offered. “Market to that customer base so if something ever does go
south, you’ve marketed to those people and made them your customer.”
Focusing on issues directly affecting WMABA shops, Anderson didn’t mince words when stressing that the Washington-Metropolitan market was in desperate need of a refresher on proper estimating.
“Maryland, Virginia and DC are in the bottom five of the cheapest
places to get your car fixed in the United States of America, but we
have one of the highest costs of living,” he announced. “I have seen the
enemy, and the enemy is us. We’re uneducated, and we need to get
educated.”
In Anderson’s mind, proper estimating begins with proper equipment – namely OEM scan tools.
“It is next to impossible to write an accurate estimate and properly
repair a vehicle if you do not have access to OEM information,” he said.
Anderson spent a considerable portion of his presentation
Attendees gained valuable tools they can now use in
improving their businesses.
36
October 2013
discussing ASTech (http://collisiondiagnosticservices.com/astech), a
revolutionary device that connects a technician over the Internet to an
ASE-certified Master Certified Technician who scans the vehicle with an
OEM scan tool. Within minutes, the shop technician is contacted with
the results of the scan. The ASTech database currently covers approximately 70 percent of all vehicles from 2008 to date, and grows constantly. By the end of 2013, the database will have full coverage of all
makes and models from 2008 to 2014. Key benefits of the ASTech service include faster cycle times, cost savings, reduction in supplements
and access to authentic OEM scan tools without the expense.
To demonstrate the accuracy and ease of use of the ASTech,
Anderson took attendees outside in the hotel parking lot and ran a scan
on WMABA Board member John Krauss’ 2012 Infiniti. A very short time
later, the scan results came in and revealed that one of the vehicle’s
right rear tire pressure sensors could not be detected.
On the subject of dealing with insurers during the estimating
process, Anderson encouraged attendees not to take the bait when an
insurer flatly refuses to pay for a particular procedure.
“Insurance companies train their people to tell you, ‘You’re the only
one,’” he explained. “Why? It’s a negotiation tactic.”
Anderson suggested that shops should keep the following four
questions in mind when they encounter this kind of resistance from an
insurer:
1. Is what I’m asking for required to put the
vehicle back to pre-accident condition?
2. Is it included in any other labor operation?
3. Is there a pre-determined time?
4. What is it worth?
“If they say ‘I don’t believe it’s required,’ it’s your job to prove to
them that it’s required,” remarked the speaker, who recommended that
so excited to go to work the next day. He is inspirational; he just made
me want to kickstart my business again!”
Even after 15 years as an estimator, Irvin Morgan of Walker Mill
Auto Collision walked away from Anderson’s seminar with a new way of
thinking about his profession.
“I was blown away!” he says. “I implemented some of the things
we talked about right away.” Morgan was especially impressed with
Anderson’s discussion on 100-percent teardowns and “the number of
things that get missed that we can improve on.”
While those who made the time to attend Anderson’s class gained
valuable tools and insights, it was difficult to ignore the elephant in the
room: Why didn’t more members take advantage of this unique educational opportunity? This thought was clearly on WMABA Executive
Director Jordan Hendler’s mind during her opening remarks at the start
of the day.
“I’m proud of you for coming,” she said. “A lot of people need to
hear what [Mike] has to say. If you do nothing else when you leave
©istockphoto.com/dem10
repairers use resources like the Database Enhancement Gateway
(DEG) and the SCRS Guide to Complete Repair Planning to help them
develop a strong position in the negotiating process.
Perhaps the highlight of the seminar came in the afternoon, when
Anderson spoke at length regarding the benefits of adopting a 100-percent teardown process. He noted that the “best of the best” shops he’s
encountered have a supplement ratio of less than four percent on drivables and less than 11 percent on non-drives after a 100-percent teardown. Conversely, he has seen other shops have supplement ratios of
50 percent or higher. In his mind, those days are over.
“If you’re not tracking your supplement percentages, and you’re tolerating people who have 40- and 50-percent supplement ratios, you
need to sit down and look at the 100-percent teardown process,” he
said.
Above all, Anderson advised the business owners in attendance to
have patience when working to implement the practices covered in the
seminar. According to his research, humans need to do something 30
days in a row before it becomes standard practice. And if your employees are out on the weekends, make that 76 to 80 days.
“If you implement a new policy in your shop and your employees
don’t do it, don’t get mad at them,” he said. “It takes a while for it to
become habit.”
Not surprisingly, Anderson’s one-of-a-kind seminar was a huge hit
among attendees.
“It was the most valuable nine hours that I’ve ever spent!” remarks
Sisk Auto Body manager and new ASTech user Barbara Chase, who
walked away with 11 pages of notes from the day’s various discussions.
“After I went home, I couldn’t even sleep that night because I was
Anderson noted that the “best of the best” shops
he’s encountered have a supplement ratio of less
than four percent on drivables and less than 11
percent on non-drives after a 100-percent teardown.
here, tell at least one other person you work with some of the things
you’ve learned today. Shame on them for not being here, but hopefully
we can change the industry one person at a time.”
For more information on Mike Anderson and CollisionAdvice,
please visit www.collisionadvice.com. H&D
Mike’s energetic and often combustible method of getting his points
across makes him a huge hit with our industry. Often, the prospect
of attending a seminar meeting can be thought of as a bore, but
not his! If you do nothing else in the next year, find a way to attend
a class with him. It changes the way you think about your repair
business.
October 2013
37
TECHNICAL
FEATURE
continued from pg. 23
image in your market area. These OEM
repair programs are pretty exclusive, and
that puts you in very good company
because the OEMs are very selective on
who they allow on their programs. You can
Google the OEM Certified Repair Programs
and count the amount of certified repair
facilities in the US and see they are limited
and in demographic-specific areas.
Depending on the OEM program you
get involved in, you can expect to spend
anywhere from a few thousand dollars to
upwards of $1 million. We hope this article
has helped the industry to better understand
what it takes to get involved in OEM repair
programs. Feel free to contact us if you
have any questions. H&D
Larry Montanez, CDA is co-owner of P&L
Consultants with Peter Pratti Jr. P&L Consultants
works with collision repair shops on estimating, production and proper repair procedures. P&L conducts
repair workshops on MIG & Resistance Welding,
Measuring for Estimating and Advanced Estimating
Skills. P&L also conducts investigations for insurers
and repair shops for improper repairs, collision
repairability and estimating issues. P&L can be
reached by contacting Larry at (718) 891–4018
(office), (917) 860–3588 (cell), (718) 646–2733 (fax)
or via email at [email protected]. The P&L
website is www.PnLEstimology.com.
Jeff Lange, PE is president of Lange Technical
Services, Ltd. of Deer Park, NY (www.LangeTech.
net). Jeff is a Licensed New York State Professional
Engineer who specializes in investigating vehicle
and component failures. Lange Technical Services,
Ltd. is an investigative engineering firm performing
forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance
issues. Jeff can be reached at (631) 667-6128 or by
email at [email protected].
Many repairers have gone down the road of
OEM certification programs. Some say that
they have had huge success and utilized it as
a marketing tool to new and existing customers, as well as a way to differentiate
themselves. But there are others who have
claimed that they were better off before.
Personally, I don’t know how anyone who
advances their business with research and
forethought could have complete failure.
38
October 2013
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October 2013
39
40
October 2013
October 2013
41
HEADLINERS
The Latest News & Notes
Sisk Auto Body Named
“Best Body Shop” by
Calvert’s Best
Sisk Auto Body manager Barbara Chase
WMABA members Sisk Auto Body (Owings,
MD) are pleased to announce that they have
been named “Best Body Shop” in the latest edition
of Calvert’s Best Business Book. An annual
publication that asks for Calvert County residents’
"Best of" picks in more than 100 business
categories, Calvert’s Best Business Book notified
Sisk Auto Body of their award after the business
received the most write-in votes from members of
the community.
“I’m extremely proud and honored,” says Shop
Manager Barbara Chase. “I’m humbled that people
would actually think of us. It feels incredible!”
Launched in 1981, Sisk Auto Body is a second-generation family business currently managed
by Chase and her sister, Muffy Revell. The shop
works to maintain a positive presence in the area
by sponsoring a variety of events and activities by
organizations including the United Way of Calvert
County and End Hunger in Calvert County.
Additionally, the shop has developed successful online marketing tools including a Facebook
page that has attracted attention thanks to regular
contests and quizzes that award the winners with
free goodies. For example, the shop recently asked
its Facebook followers, “If you’re ever rear-ended,
why should you take a picture of the rear of the car
that rear-ended you?” The question not only resulted in a free wash for the user with the right answer,
but also attracted a slew of new followers.
“It definitely gets people talking about the
shop,” says Chase. “Sometimes, we’ll do beforeand-after pictures or post information on what you
should do after an accident happens, or weather
reports urging people to drive carefully if it’s foggy.
Each time we do something like that, we get more
and more ‘likes,’ which is awesome.”
More information on Sisk Auto Body is available at www.facebook.com/siskautobody or
www.siskautobody.com. H&D
42
October 2013
NATIONAL
FEATURE
continued from pg. 31
At the time of Sewell’s dismissal from
Select Service, work from the insurer
amounted to around 22 percent of the operation’s entire repair business. Sowle says it
may take up to 90 days for him to determine
the kind of effect the absence of Select
Service will have on his business moving forward.
“We had a substantial amount of volume
in the program, and there was basically 30
days or so of that [coming] through,” he says.
“Everything that we had in the shop on Select
Service continued on Select Service.
Anything new after two days from [receipt of
the notice] would come in as a ‘field’ [job]…
What percentage of my business is going to
be State Farm remains to be seen, but I don’t
think that business just goes away.”
Although Sowle says that “it’s unfortunate that a mandate was put on us and we
were terminated because we didn’t comply
with it,” the situation does at least come with
a silver lining – and a potential lesson for
anyone afraid to consider life without Select
Service: Despite his disappointment over the
departure of the DRP, Sowle is far from bitter.
If anything, he’s too busy serving his customers to feel too bad for too long.
“I’ve never relied on a DRP to send me
work,” he says. “It just made the process easier so I’d have a better chance of making the
customer happy.”
Perhaps the truest answer to the
PartsTrader dilemma lies in that statement.
H&D
The PartsTrader element is becoming like
the fiction of a comic book, and it’s going
to take a super hero like Mosely (or hopefully WMABA) to stop the forces of evil.
Yes, evil. While I admit that State Farm is a
business and is out to make a profit, so are
the shops our association serves. And we
would do well to never forget or be
ashamed of that fact.
October 2013
43
44
October 2013
October 2013
45
WHAT’S
@ www.wmaba.com
UP TO?
Looking the Part
Here at WMABA, we are always trying to do our part
to not only promote the professionalism of the collision
repair industry, but also help support the fresh faces
just entering our field. The Collision Repair Education
Foundation and the Society of Collision Repair
Specialists (SCRS) have the same commitment to the
future of the industry, and have recently announced a
great initiative that will help connect current industry
members to local collision repair programs while also
helping inspire collision repair students as they prepare
to join the workforce following graduation.
The announcement from the Collision Repair
Education Foundation to the right outlines the details of
the program, which we at WMABA wholeheartedly support. If you are interested in reaching out to your area
secondary or post-secondary school to sponsor professional uniforms for their collision repair program, I
urge you to contact Brandon Eckenrode at
[email protected] or (847) 4635244. The deadline to take advantage of this endeavor
is January 1, 2014, so get involved today! H&D
The Collision Repair Education Foundation is inviting collision
industry businesses to help provide their local secondary and
post-secondary collision students with a professional appearance by sponsoring Cintas technician shirt-and-pant work uniforms for this upcoming fall school year. The Education
Foundation is looking to connect industry members across
the country with their local collision school programs. The
more engaged these members are with the school, the better
prepared the collision students will be to enter the industry
after graduation.
Kadel’s Auto Body, a 17-shop operator in Oregon, recently
sponsored the purchase of uniforms for Portland Community
College (PCC) collision students and PCC Collision. Instructor
George Warneke noted, “I want to give a huge thanks to
Kadel's Auto Body for the generous sponsorship of uniforms
for my students through the Collision Repair Education
Foundation. The timing of this donation was perfect! This term
has just ended, and these students are preparing to start their
last term of their two-year certificate in Auto Collision Repair.
They are now arranging their last term, which is an individual
cooperative work experience with an auto collision repair
shop, where they will work for 300 hours to complete their
training. The uniforms help them to feel and look professional
as they go out into the workforce. It also has helped them
have confidence by looking the part when interviewing for the
cooperative work experience, and they feel like part of the
team in a shop on the first day.”
“Over the years, we have found that many industry members
aren’t aware of their local collision school programs,” added
Brandon Eckenrode, director of development for the Collision
Repair Education Foundation. “In order to fulfill the industry’s
dire need of capable and efficient entry-level workers, we all
need to start taking an active role with these collision programs.”
The work uniforms can be sponsored for $50 per student,
which includes a pair of Cintas work pants and a technician
shirt. Those companies that sponsor at least 100 uniforms will
have their corporate logo screen printed on the back of the
shirts. Industry members who are interested in learning more
about this sponsorship opportunity, seek help in identifying
their local collision school programs or have any other questions should contact Brandon Eckenrode at
[email protected] or (847) 463-5244.
Founded in 1991, the Collision Repair Education Foundation is
a not-for-profit organization dedicated to securing donations
that support philanthropic and collision repair education activities that promote and enhance career opportunities in the
industry. For information on how to donate to programs supported by the Education Foundation, visit us at
www.CollisionEducationFoundation.org.
46
October 2013
October 2013
47
48
October 2013
(804) 789-9649
[email protected]
EXECUTIVE DIRECTOR’S MESSAGE
@ www.wmaba.com
I’d Do It My (Mike’s) Way
Mike Anderson is exciting. And the doctor says this excitement is highly contagious.
It doesn’t matter whether you consider Mike’s
presentation passionate, moving, electrifying or emotional. Any way you slice it, Mike is “excited” about
teaching others and helping them to succeed. And he’s
really great at it. If you knew him from the days he
owned Wagonwork Collision, you probably saw him as
a peer. Now, you see him as much more than that. No
matter how great of a shop owner he was, he’s an even
better teacher.
Spending a day with him is fun. He jokes a lot
(mostly about himself) and sometimes screams out, “I
love this stuff!” I mean, he literally screams it out usually when the audience is distracted. When he does
this, the audience members (myself included) jump out
of their seats. He makes the topics he discusses –
usually very serious – lighter and more enlightening. In
my opinion, it makes it easier to digest and retain the
information, as well as envision practical applications.
It’s very empowering.
It isn’t always easy subject matter. As a former
shop owner of a completely non-DRP business structure, he talked about his mental transition through
his consulting experience into more of a “fix-it-right”
Mike Anderson is encouraging the industry to
embrace new ways of addressing old problems.
mentality. Whether shops are independent or DRP-dependent didn’t matter to him as
much as quality of repair. And on that point, I couldn’t agree with him more. In my
years with WMABA, I’ve come to that realization through working with many different
types of shops. I also don’t care what your business model is – just that it includes
doing a safe repair for the consumer.
Later in the meeting, he went into supplement ratios and complete teardowns
and how they can affect the cycle time and profit of your business. Joel covered
these topics earlier in the cover story, so I think you’ve got that part down.
What I want you to get from Mike’s seminar are ways of improving customer
relations. Sixty-eight percent of people prefer text updates to phone or email. Do you
think it would be wise to look into that? He also cited a survey that says consumers
put trust, empathy and direction above price, which was down in sixth place! Do you
think that setting clear expectations on the front end of the repair process to establish trust — and taking the time to listen to the customer about how the accident took
place — would gain empathy? Wouldn’t that make you first in their book, even over
the insurance company?
Another way to improve customer relations and establish a long-lasting relationship is through communication. Sounds a lot like a family, right? If Mike’s right, your
customer could forget about you completely in 18 months, so you need to get in front
of them on a regular basis. Do you have a Facebook page with regular updates? Do
you ask them to give you an email address to send them a newsletter? Have you
checked your website ranking on Google? Do you not know how to do any of this
stuff and need to go out there and get some help?
These are all things you’ve heard before, but maybe never took initiative on.
Mike challenged you – even if you weren’t there – to think like a business owner.
Think logically and not emotionally. Insurers may not come around immediately if you
explain your charges in a methodical and documented way, but you can continue to
have the discussion with them until they do.
If you put 10 percent of your time into building a business, it will pay you back
tenfold with happier customers who have positive things to say about their experience and will tell their friends and families about you. That’s always better than relying on someone else to send you a customer you didn’t get on your own. If I could
copycat anyone’s thoughts, I’d do it Mike’s way. H&D
October 2013
49
©istockphoto.com/fleaz
Jordan Hendler
ADVERTISERS’
INDEX
Alexander & Cleaver ....................16
Alexandria Toyota ........................42
All Foreign Used Auto ..................43
American Honda Motor Co., Inc. 4
Audi Group ..................................25
Axalta Coating Systems ..............5
BMW Group..................................26-27
BMW of Bel Air ............................IBC
BMW of Fairfax ............................3
BMW of Rockville ........................IBC
BMW of Towson ..........................IBC
CAPA ............................................6
Crashmax ....................................21
Empire Auto Parts ........................43
Euro Motorcars ............................39
Euro Motorcars Rolls-Royce ........42
Honda Group ................................41
Hyundai Group ............................48
Jerry’s Chevrolet ..........................14
Koons Ford ..................................44
Mazda Group................................47
MINI Group ..................................32
MINI of Alexandria ........................39
MINI of Montgomery ....................39
Mitsubishi Group ..........................15
Mopar Group ..................................10
Nissan Group................................40
NORTHEAST™ 2014....................17
O’Donnell Honda ..........................38
Porsche Group ............................30
PPG............................................. IFC
P&L Consultants ..........................23
Russel Toyota ..............................44
Safety Regulations ......................50
Safford Fiat of Tysons ..................50
SEMA Show 2013 ........................19
Springfield Toyota ........................38
Subaru Group ..............................24
Tire Distributors Inc. ....................12
Tire World ....................................31
Toyota Group ................................33
Valspar Automotive ......................OBC
VW Group ....................................9
50
October 2013
October 2013
51

Inside this issue - CollisionAdvice.com

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