With higher prices curtailing driving (and thus accidents) and tighter household budgets leading some vehicle owners to leave damage unrepaired, some collision repair shops are reporting 10, 20, or even 30 percent drops in sales.
Whether hit hard or moderately, most shop owners are looking for ways to keep their businesses moving during the slowdown. Here are 15 things some shop owners--particularly those who have experienced similar economic situations in earlier decades-–are doing to respond.
1. Up the ante for referrals. Thanking and rewarding customers or other businesses when they refer a customer to your shop is hardly a new idea. But a number of shops said they are more aggressively seeking such referrals by offering more for them than they had in the past. The Starbucks card is being replaced by a restaurant gift certificate for a meal. The free car wash is being replaced by a cash reward.
"This isn't necessarily a long-term change to what we're offering customers for referrals," one shop owner said. "I just wanted to get a little more attention to our referral program at a time when we need the referrals more than ever."
2. Sell off the unneeded. Dan Schindler of Olsen Auto Body in Bellingham, Wash., said he took advantage of a brief slowdown in business last spring to begin implementing one aspect of "lean." "We got the shop more organized and looked for tools that we don't use and less-used equipment that we could put in a separate area out of the way or just get rid of," Schindler said.
Rooting out those space-wasters that gather more dust than actual use will not only help clean up the shop but also give you an opportunity to sell or donate items to free up a little extra cash for marketing or other needs, Schindler said, adding that he's also heard of shops holding an internal drawing to allow employees to take the items they want.
3. Ask employees for help. Everyone in your business brings a slightly different perspective to the shop. When was the last time you asked employees for ideas that help the business save money? One shop owner said he offers a $75 reward for the best idea each month.
The ideas shared have ranged from a couple of changes in products the shop stocks and uses to not renewing subscriptions to several magazines in the customer waiting area that were rarely read. No single idea has been a huge money-saver, but the shop owner said he's more than saving the cost of the rewards, and even more important, it's instilled in employees an interest in looking for ways to cut unnecessary costs.
4. Go shopping for that additional location. Many business owners fail to sell their businesses at the most advantageous time to do so: when things are going great and the business is growing. Instead, they wait until times like now when things are tough. That's when smart buyers looking to add locations often find they can get the best deals.
The usual caveats about "smart growth" and "managed debt" apply, but if you'd been thinking about expanding your business, now may be a good time to look around.
5. Keep up morale. Shop owners who have lost key employees during previous slowdowns say they're making extra efforts to not let that happen again. One said he's trying to keep spirits up by holding softball and bowling "tournaments" between his employees and those of another shop.
One franchise shop said it is creating a sales competition among estimators at the other franchise shops in the market. Another shop owner said he gave a weekend get-away package to each of his three key technicians, all of whom have seen their income drop this year.

6. Do a good deed. Speaking of morale boosters, this might be a good year to get involved with donating a repaired vehicle to a family in need. Shops that have done so in the past say it's something their employees enjoy being a part of, it's a way to give back to your community, and it often brings with it some positive publicity.
If you're not sure where to begin, check the National Auto Body Council's (NABC's) "Recycled Rides" web site (www.recycledrides.org). NABC hopes to present 100 refurbished cars to 100 needy families around the country on the Monday before Thanksgiving, and they can provide a step-by-step guide on how to get involved.
7. Follow up on estimates. Sometimes the oldest and seemingly most obvious ideas are the ones that get overlooked, particularly when times are good. If you don't get a job sold at the time you write the estimate, create a system to follow-up with those customers to ask for the job or at least find out why you didn't get it.
8. These can be tough times for equipment companies and other vendors in the industry as well. It can be a good time to get a deal on that new piece of equipment you've had on your wish list, particularly because the company may be able to offer more help with installation and training than they can when they're swamped.
9. Work on your Web site. If you invest far more in your phone book ad than your company's Web site, take advantage of the slowdown to fix that. Several studies have found the almost twice as many Americans start looking for local listings online rather than in printed phone books. At a minimum, get a "placeholder" Web site for your shop that includes your shop address, phone numbers, hours, and key selling points.
If you have a site, make sure it is updated and accurate, and work on improving your standing in the search engines either via pay-per-click or "organically" by getting others (vendors, associations, etc.) to link to it, making sure it includes the key terms someone searching for a shop is apt to use, etc.
10. Keep marketing. While it makes good sense to evaluate all your marketing efforts at this time, many business experts also say cutting back those efforts to save money during a downturn can be a mistake. Advertising can help get your name out at a time when your competitors may be pulling back. 
"A lot of people fail to market, then when business gets slow they say, 'I can't afford to market,'" said Frank Jandura of Crebassa's Auto Body in San Rafael, Calif. "You need to have an ongoing marketing plan when times are good, and continue that even when times are a little tougher."
Jandura credits an increase in his shop's sales this year--despite the economy--to ongoing marketing year-in and year-out. "I've always had a marketing plan, putting 2 percent of sales into marketing," he said. "My recommendation is to start marketing even if business is down and continue marketing when business goes back up. Don't say, 'OK, business is good; I can stop marketing.' You have to continually market."
11. Make the most of your existing customers. Up-selling customers can be tough in a tight economy, but retail analysts say consumers are still open to lower-cost items that feel like luxuries and things that help customize something otherwise viewed as a commodity.
The $200 detail or complete custom paint job may be a tough sell, but the $49 "express detail" or some striping or graphics may appeal. Also consider what other vehicle services you may be able to offer them as a convenience while their vehicle is at your shop–even if tires or oil changes aren't in your long-term plans.
12. Building maintenance. Take advantage of the slowdown to get some work done on your shop's building and property: new paint, landscaping, fence repair, the sorts of things that often get deferred when the shop is full of work.
13. Get some new perspective. You can almost always find good ideas you can use during the downturn (and beyond) by seeking some outside perspective. Catch up on your trade publication reading. Pick up a business book and consider how the concepts can be applied to this industry. Join a 20 group. Get to some of the association meetings you've been meaning to attend. Call a noncompeting shop across town or across the country (if you're traveling on vacation) and ask if you can tour their facility.
14. Hire up. Most shops in recent months report having more technicians contacting them looking for work than they've seen in years. If you have an employee who will be your weakest link when business rebounds, this may be the time to seek a replacement.
15. Get some training. Too often, training budgets take the hit when a company is looking to trim costs. But this can be an ideal time to get technicians to I-CAR or vendor training and to seek out sales or management training for yourself or office staff. It can be tough (and expensive, given overtime) to get to such training when the shop is swamped and everyone is working 40-plus hours a week.






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