"Shops that rent may be working for two weeks a month just to pay rent," Berndsen said, pointing out that rent usually increases 3 to 5 percent annually.  "The business is the vehicle to the end result of owning a property," he said.  "Real estate is a fixed asset that will never go away."

Berndsen said he recognizes that getting a second collision repair facility up and running will be no small task but beneficial in the long run.

"We can load level and share the work between the two shops," he said.  "Right now the economy is so tight that borrowing money is tough, but we're going for it."

He said he estimates the total cost of the facility to be $1.5 million, one that would be suitable for most retail businesses because it's situated on a road with a high volume of traffic.

Berndsen's existing shop, located at 411 N. Iowa Ave., is unique in that it is a complex of multiple buildings, all of which he owns.  Each of the shop's four technicians has their own three-bay building to work in, as well as a separate one for the front office and detailing, and another for the paint department, said Matt Tamberino, shop manager.

In addition to owning these buildings, Berndsen said he also owns three commercial properties and six residential units.  Since he set up his companies as an "S Corp," all profits fall to a single bottom line, he said, adding that money can be moved around as needed.

Although Berndsen's shop has done well for years, he said there are several competitors in the area, which gives DRP customers many choices when their insurer refers them.  Rather than accept that, he said he's attempting to follow insurer demand, which parallels population growth in the north metro area.

Following the growth in Colorado Springs, Berndsen said he has secured a loan to build a new facility off East Woodmen Road.  "Woodmen is one of the fastest growing corridors in the state," he said, adding that the area is not saturated with collision repair shops, which bodes well for attracting new DRPs.

Berndsen said he's a pilot and has a hanger at Meadow Lake Airport, and he has seen the growth in that part of town as he's traveled to and from the airport over the years, noting that a Wal-Mart and Safeway grocery store have gone up a half-mile from the site of his new location.

The success of most repair shops depends on good DRP relationships, Berndsen said.  "It's important that we be fair with them and they be fair with us."  A shop can be sustained with a modest markup on a job, he said, adding that key performance indicators (KPIs) must be met along the way.

Those KPIs include high CSI scores, low severity or average cost per repair, limited cycle time, and convenience for the insured, he said. 

 
When a customer pays premiums for years, their experience comes down to a single phone call for a referral, Berndsen said, pointing out that DRP shops must represent the insurance companies well.

"From then on, the entire customer experience is handed to me," he said.  "If it's mishandled, it's my responsibility."  A repaired vehicle must delivered on time, within the allotted price, and within the guidelines of the DRP, he said.

To control the quality of repairs, he said he requires his technicians to complete all their own work, including mechanical work and alignments, but not airbags.

Repairing the vehicle properly and on time often begins with the level of service and quality of products vendors offer, Berndsen said. "We try to stick with local vendors along the Front Range." 

Parts Manager Chuck Hunt, who has several decades of dealer parts experience, most recently with Perkins Dodge, runs the parts department, Berndsen said.

 Hunt said he expects the same level of service he offered his wholesale accounts when working as a dealership parts manager.  It must be easy to communicate with vendors, he said, adding that he prefers knowledgeable counterpeople and prompt delivery.

"Even the attitude of the driver counts," he said, adding that they should ask for returns and help out in any way.  In return, he said, the shop is a good customer, pointing out that it has a 1.5 percent return rate, when the industry average is closer to 18 percent.  If a part must be returned, he said he tries to return it in the same condition and packaging that it arrived in.

Hunt's said his wholesaling dealerships of choice include Perkins Dodge, Liberty Toyota, the Burt Automotive Group, and Mile High Honda Mitsubishi Acura.  Berndsen said he plans on ordering parts for his second shop from these same vendors through Hunt.

Choice Paint & Supply of Denver supplies the shop with Spies Hecker, Berndsen said.  "We've always had extremely good luck with it," he said, adding that Painter Frank Ellsworth sprays it in two downdraft booths, an Accudraft and Saico.

Berndsen said he plans on moving one of his three frame benches to the new location and a Chief Genysis frame-measuring system and another bench.