Columbia, Mo.—How can body shop owners maximize work flow, increase profits, and increase customer satisfaction? Answers to these questions and many more were offered at the fourth annual Midwest Collision Industry Forum on June 17.
Collision repair shop managers and owners, suppliers to the collision repair industry, and insurance company representatives were on hand at the all-day event presented by the Alliance of Automotive Service Providers of Missouri (AASP-MO), the Automotive Service Association of Missouri/Kansas (ASA-MO/KAN), and the Society of Collision Repair Specialist of Missouri/Kansas (SCRS-MO/KAN).
Collision repairers and the new media
Craig Bruce, chief operating director of Pure Marketing in Columbia, started the event with a presentation on how body shop owners can use modern tactics to keep their companies up to date in the new media world.
“Your brand is the cultural experience your prospects and customers have with your company,” Bruce said. “It is what you stand for, a promise you make, and the personality you convey.”
Bruce said that a company’s brand includes images a company conveys, messages delivered, employee-customer interaction, and customer’s opinion of their business versus its competitors.
To develop a brand strategy, he said that first and foremost, a shop owner must develop a SWOT analysis-a strategic planning method used to evaluate a business’s strengths, weaknesses, opportunities, and threats--followed by the development of a SWAT analysis (strategic weapons and tactics)—a marketing plan of attack.
Sarah Wilson, marketing communication specialist for Pure Marketing, elaborated on some of the new media tactics a body shop can use, such as Facebook, Twitter, YouTube, text messages, and Web sites.
YouTube, for example. is a great place for a body shop to create a company channel showing a short clip of a car being worked on at fast forward speed, or testimonials or referrals from satisfied customers, Wilson said.
Likewise, she said, Facebook is a beneficial online outlet for a body shop to use to create a face for their business, which can assist in development of a promotional sweepstakes or to send out information, coupons, or news to customers.
Aftermarket parts: Importance of quality
Quickly sparking interest from the body shop owners in the audience, Karen Fierst, president of KerenOr Consultants and U.S. liaison for the Taiwan Auto Body Parts Association (TABPA), asked how many body shop owners/managers believed there was a place for aftermarket parts in the collision repair industry. Although only one found them to be unnecessary, many were displeased with the quality of the parts.
Fierst, previously the executive director of the Certified Automotive Parts Association (CAPA), said she recognized and understood the concern expressed by the shop owners but assured them that aftermarket parts were necessary for many reasons.
“If car companies capture a monopoly in the crash parts market, the cost of replacement crash parts will soar,” she said, adding that it could create potential parts shortages, increase total loses, and increase insurance costs.
Fierst provided the breakdown percentages of body parts market share according to Mitchell: 72 percent OEM/car company, 12 percent recycled, 11 percent aftermarket, and 5 percent remanufactured.
Seventy percent is a virtual monopoly, she said, and with many automakers seeking and receiving patents on crash parts, action must be taken or competition will be eliminated.
“I am pushing for an automotive ‘repair clause,’ which states that if a product is made, and the sole purpose is to repair something bigger, there should be an exclusion from that product for patent,” she said, adding that if OEM succeed, consumers and repairs will suffer.
For shop owners experiencing issues with the quality of aftermarket parts, Fierst said they must keep track and record specific problems so that action can be taken and problems can be alleviated.
Increasing gross profits and the power of Heijunka
Toby Chess, collision industry activist and I-CAR instructor, and David McCreight, owner of Collision Resources in Spring Hill, Kan., each led training seminars geared towards shop owners.
Chess advised shop owners on how to increase profits, and McCreight told how knowing about Heijunka can help a shop even out its work flow. An article about those sessions can be found here.
Progressive Insurance rep outlines new team concept
For the second year in a row, Progressive Insurance Corporate Process Manager Chris Andreoli spoke at the forum. This year he received far less criticism of his company’s automotive repair program.
In fact, many shop owners in attendance said they had seen improvements in Progressive’s program from the previous year when they offered Andreoli advice on how it could improve.
“I hope you feel that things have gotten better,” he said, assuring shop owners that he will continue to improve the program’s inefficiencies.
Andreoli said repairers should start to see a small team of adjusters working directly with each shop in order to help build relationships and open lines of communication.
He added that his desire is to see improved shop relations and to get Progressive employees trained through I-CAR.
General sponsors at this year’s event included B Auto Parts, Auto Body Panel, JC Auto Parts, County Line Auto Parts, Collision Hub, and Taiwan Auto Body Parts Association. LKQ/Keystone was the event’s platinum sponsor.
