Ferguson, Mo. -- As consumer spending tightens, so do many small-business owners' profit margins, including those in the collision repair industry. Attracting and maintaining business is critical, now more than ever, said Joe and Sue Lonero, co-owners of Lonero's Auto Body on West Florissant in St. Louis and on Pershall Road in Ferguson.
The Loneros, who have been in business nearly three decades, said they have come to rely on their customer base to weather tough times.
"When the customers come in the door, they're here to see us," Joe Lonero said "not because the insurance company tells them to come."
After more than 28 years, the Loneros have built a good reputation with their customers, in many cases retaining many second-generation customers. "We have a lot of repeat and referral business," Sue Lonero said.
Higher deductibles, coupled with more totaled vehicles, has reduced the number of repairable vehicles, Joe Lonero said, but he remains optimistic. "As the industry changes, people will still drive cars," he said. "And they'll always wreck them.
"I don't care what business you're in, your mode right now is to tighten up and maintain, then build," Lonero said, who focuses on maximizing current resources and getting back to the fundamentals of good business. "We're in a down cycle right now, a period of adjustment," he said.
Aligning themselves with organizations such as I-CAR and the Automotive Service Association of Missouri/Kansas (ASA-MO/KAN) have also helped, Lonero said, noting that their two shops have been I-CAR Gold status since 1992. Networking with other shops is another reason for participating in the trade organizations, he said.
A large part of success has come from keeping both shops' size manageable, Lonero said. "We're far from a mega-shop," he said. "With a lot of overhead, it's more difficult to do business."
A key to sustaining a shop during lean times is choosing the right vendors to do business with, Lonero said.
"Who's going to do the most for you?" said Joe Gearon, general manager. Parts suppliers must be willing to go the extra mile for you, be trustworthy, and have knowledgeable countermen, who can be a great asset, he said.
The types of parts used in the repair process are dictated mainly by the age of the vehicle, Gearon said. "The shops have two completely different sets of clientele" who have different expectations on how their vehicles should be worked on, he noted.
The Loneros' son, Jason, runs the St. Louis shop, which is in a neighborhood with a lot of older people and vehicles, Gearon said, adding that more aftermarket and salvage parts are used there to accommodate customers' requests and keep repair costs low.
Gearon said they prefer to use Al's Foreign Car and car-part.com for recycled parts, and Keystone and United Auto Parts Inc. for aftermarket parts. Extra parts often come with recycled parts, such as a door panel, he said, increasing profitability on the job.
At the Ferguson shop, the customers are more affluent and drive newer vehicles, Gearon said, and tend to want to restore the vehicle to pre-accident condition with OEM parts. For OEM parts, the shop relies on Webber Chevrolet, Johnny Londoff Chevrolet, Dave Mungenast Alton Dodge, Dave Mungenast Alton Toyota, Suntrup Ford, and Sunset Ford, he said.
When repairing the vehicles, Joe Lonero relies on the techs to get the job done right and on time, Gearon sad. "He puts a lot of trust in us. Each guy knows that you don't break that trust."
"They're professionals, I have to depend on them to do their jobs," Lonero said.
The Ferguson shop's techs use a Car-O-Liner frame rack coupled with a Car-O-Tronic Vision electronic frame measuring system, Lonero said. Although it's expensive technology, it makes straightening a vehicle's frame much easier, he said.
The shops use Binks downdraft paint booths, which have held up well over the course of a decade, Lonero said. One of the keys to getting a good paint job, he said, is to regularly change the booth filters and clean out the booths each time a vehicle is painted to reduce contaminants.
To keep his painters abreast of the latest Sikkens paint technology from Akzo Nobel, Lonero said he frequently sends them to training at the nearby training center in Earth City.
"We started with Sikkens because of their technology," Lonero said, adding that the paint company is constantly improving its products.
Painter Josh Fann said he recently attended a course to learn about a new water-based build primer. It works well under hoods, for example, he said, and has a better flash point and is easier to sand. "There's less scuff, and you don't have to prep as much," he said, which increases efficiency and saves time.
