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Fiscal conservatism has paid off during downturn for long-time Sacramento body shop
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Roseville, Calif.--Like most collision repair shops, Fratcher Auto Body has not been immune to the state's and nation's economic slowdown.


"We're down roughly 30 percent from where we used to be in 2005, 2006, even 2007, when things were really hopping," Owner Jerry Fratcher said of his business, now in its 21st year.


"Everything's quiet," he said. "The auto mall right across the freeway isn't doing anything. Lately, when I've been sitting at an intersection watching cars go by, I can always pick out two, three, four cars that need repairs that aren't getting done. People are losing their houses. So people are putting their money into things other than their car."


But that said, Fratcher isn't entirely singing the blues, in part because of decisions he's made. He said he didn't replace a long-term office employee who retired last year or a technician who left several months ago, keeping the shop's employee count at five and in line with the slower pace of work.


And the financial conservatism Fratcher said he learned when struggling to get the business off the ground as a one-man operation in the late 1980s has also paid off.

Jerry Fratcher, owner of Fratcher Auto Body, says he has used PPG paint products throughout his 35-year career in the industry.
"I started out working on a shoestring with knots in it," he said, laughing. "My advice is to forget about those credit cards. A lot of guys think those are the answer. Right now is the time they find out they weren't. Keep your bills low."


But Fratcher also isn't opposed to investing in the right equipment for his 12,000-square-foot shop even when times are tough. He said he just makes any buying decisions carefully.


"If you need something that very day, the price is going to be more than you want to spend," he said. "I've learned I don't want to be in a big hurry to get something. I try to do my homework."


Fratcher points to his purchase of an Elektron Multispot M83 spot welder as an example.


"That thing is a miracle worker," he said. "With MIG welding, you had to grind down your welds. Now we can put a bedside on, getting the thing down in no time, and it looks like factory (welding). It's less work and a better finished product just because of the welder."Derek Browning says he worked as a painter at Fratcher Auto Body in the past, but after working as a body technician elsewhere, returned to Fratcher last year to do body work.


Fratcher said he grew up in Cleveland, the hometown of PPG, and that he's been using that company's paint products throughout his career. His participation in PPG's CertifiedFirst program brings some work to the door through a direct repair agreement with Ameriprise, he said. But even more important, he added, is the training and support PPG provides.


"Having the guarantee program through PPG is really good because if you get in a situation where you have a problem, they stand behind you," he said. "As long as you do what you're supposed to do for training and use of the product, they stand behind it."


Fratcher said he has similar loyalty to his local paint supplier, Mac's Distributing, to which he was introduced even before starting his own shop.


"When I went off on my own, I stuck with them," he said. "Dave (Harshbarger), the owner, will let us know if he has a good deal on something because he bought it before a price increase or something like that. That's how he works with us in order to help keep us afloat. Because if we're afloat, he's afloat."

Painter Jim Gibford, who has worked at Fratcher Auto Body for a decade, masks up a Lincoln inside the shop's paint booth.
Another lesson Fratcher said he learned early in his career that has served him well is to always "know what you're talking about."


"Know your products. Know your abilities. Know what you can get done," he said. "Someone I worked for in the 1970s told me, 'I don't bring any work in the front door that I can't do myself.' That's smart thinking."


With just the one DRP, Fratcher Auto Body relies on some dealership referrals but even more on repeat business and customer referrals, Fratcher said.


"There are some of our customers who must have us on speed dial because every six months or so something happens and they'll be back in for repairs," he said.


Several conversations Fratcher said he recalls with other shop owners and managers have convinced him that his business is better off not seeking out other insurer DRPs. He said the manager of one shop that lost a DRP told him that business dropped by 50 percent the first month, then started rebounding.

Jon Wright started as a detailer at Fratcher Auto Body eight years ago but has since expanded his skills as a body technician.
Fratcher said that manager told him, "'We're actually making more money and working less as opposed to the hoops we had to jump through and all that we couldn't charge for.'"

 
"I also remember a trainer who was here from Pennsylvania who after class told me his shops all had DRPs but that if you can do without them, it's probably better," he said. "We get better rates by not being on the programs. So we don't have the volume that some of the guys in town have, but I also don't have the bills that some of those guys have. I keep the ceiling low, and at times like now, we're able to ride it out."


Fratcher said he also never wanted the pressure of operating a higher-volume shop, adding that he thinks it also allows him to turn out a more consistent level of quality.

Viki Armstrong has worked in the office at Fratcher Auto Body for 19 years.
"Some of the bigger shops have their names everywhere, but quality work and dependability is what I can offer," he said. "You get into some of the bigger shops and they turn their employees over, so they don't really have the control of the work going out the door. I think we offer a better product. People can rely on us to get the job they want.


"I don't follow the main game plan that a lot of guys do," Fratcher said. "I've just sort of sat back and watched and picked the best of what I see from other people. It's worked pretty well so far."


 

 

 



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