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New shop's early success built on quality, trust, and word-of-mouth
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Sandy, Ore.--John Kallen said he opened his new shop, Champion Collision, in February 2007, with a "grand marketing plan" in place. That plan has pretty much gathered dust ever since.


"Essentially, all we've done is get the building done and fix cars," Kallen said inside the new building's 13,000-square-foot production area. "We haven't really had time to do anything else."


Marketing hasn't really been an issue for the shop when its only "slow period" was three weeks this summer when his 11 employees were able to head home by 5:30 p.m. each day and skip coming in some Saturdays, Kallen said. Otherwise, word-of-mouth has kept the shop busy, including times when it has had more than 50 cars on the property, drawn not just from Sandy and nearby Gresham but even throughout Portland, he said.


"The quality of the work, not just the amount of it, that we've been able to produce is what I'm most proud of," he said.


After more than two decades working in a variety of capacities for a number of shops, Kallen said that like all entrepreneurs, he was sure he could do things better. He said he spent several years preparing to go into business for himself, looking at available buildings and even trying to buy several existing businesses.

John Kallen brought more than two decades of experience in the industry to his new company, Champion Collision, which he opened last year.
"In the end, I'm so particular that I just thought we should start from scratch," he said.


Building from the ground up gave Kallen an opportunity to build in features like added ventilation systems in the production area and large windows high up on the building's south wall that flood the shop with light, he said.


"There are a lot of things that went into the design of the building as a result of me being in coveralls for 15 years and knowing how I would have wanted it," he said.


His equipment choices for the new building, including a Chief frame rack and Velocity measuring system, also were based on his years of experience at other shops, Kallen said. The shop's experience with its AFC Finishing Systems spray booth has been such that he said he is leaning toward that brand for the prep station and second booth he plans to add later this year.


"We wanted to be a top-notch service facility, so that meant having some of the best equipment available," he said. "We've had great luck with that booth, and AFC is a great company. Even though I didn't buy this booth from them, they've been nothing but supportive. They're supporting it like they sold it to me."

Champion Collision Technician Dan Wanat works on the tailgate of a Chevrolet SSR.
That's high praise from a shop owner who acknowledged that he sets high standards for the company's vendors.


"We have high expectations for what we produce within this building," he said. "As a result, we have high expectations for the suppliers that serve us, as well."


Kallen cited the parts service from the Suburban Auto Group as a good example of what he looks for in a vendor.
"Those guys have really been amazing," he said.


Such expectations also led the company to recently change to DuPont's Spies Hecker paint line, Kallen said. Just a few weeks into using the new system, he said it was too soon to fully evaluate the change but that he was optimistic that it was a good move for the shop.


Shifting to using DuPont's ProfitNet shop management system also will help him evaluate the change from a business standpoint, he said. The tracking and analysis the system allows "is key to where we're going as a company."

Alex Gretchko sands the hood of a Dodge Durango at Champion Collision.
Kallen said his initial marketing plan presumed getting involved in some insurance direct repair programs (DRPs), and although he won't rule out that possibility, he said he's been pleased that it hasn't been necessary to stay as busy as the shop has.


"If an insurer's philosophy mirrors what we're trying to provide our customers, it could be a good fit," he said. "But if it's something that an insurance company wants to do just to control costs, that's not what we're here for.


"I think a lot of shops bring problems upon themselves," he said. "I think once you welcome in DRPs, you're really setting the tone. If that's how you're going to conduct business and then complain about insurer control, it seems a little hypocritical. I think you just have to have some standards that you abide by."


Kallen said he's been pleased to have some insurers treat his company much like it is a direct repair shop, in terms of letting the shop photograph the vehicle and start repairs.

Painter Greg Dahm was on-board with Champion Collision since a few months before the business opened last year, even helping install the paint booth in the new building.
"We're worked hard to be the kind of shop, the kind of company, that people can trust and count on," he said.


Although Kallen said he misses the hands-on work of repairing vehicles and feels more at home in the shop rather than behind a desk, owning and operating the business has its rewards as well. 


"I do love being able to help the people who come in," he said.


And although Kallen said he understands the negative outlook some long-time shop owners hold for the industry, he doesn't share that view.


"It's been fun. It's been an adventure. And it's surprising how successful it's been," he said. "Going in, we had best-case and worst-case scenarios. We really modeled our survival on the worst-case scenario. But it's been remarkable the opportunities we've had in just a year and a half.


"Now I want to manage our growth and not move too quickly," Kallen said. "I want to make sure we move carefully so we do have a 10th and a 15th and a 20th year."
 




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