South San Francisco--Rich Pera doesn't hesitate when asked if there's a particularly good business decision he's made.
"We started a real strong marketing plan about six years ago," said Pera, the owner of Daland Body Shop, an I-CAR Gold Class business with 15 employees repairing between 100 and 130 cars each month.
"We run three different professionally produced television ads year-round on cable," he said. "That's been very successful and has driven up our walk-in capture rate by 20 to 35 percent."
Pera said the marketing plan also included redesigning the company's logo and development of a professional-looking, information-packed Web site.
"I'm surprised that the majority of shops still don't have a decent Web site," he said. "That makes no sense to me. Obviously, the Bay Area is known for having Internet-savvy people, so it's a great tool for us. It sells our 'product' and answers the majority of questions that people have.
"The bigger and better you look with your commercials and Web site, people will have more faith in you," he said. "People want to see the longevity and the fact that you will be there in the future. We've been around since 1973. Between that, our location, the name recognition we've built, and our quality service, when a customer has a choice between Daland and somebody else, it's an easy decision."
Pera said it's also been a good move to associate his business with Esurance, one of several insurers (including Farmers and AAA) in whose direct repair programs the shop participates.
"Esurance is net-savvy and paperless, and going that route certainly helps," he said. "We originally got started using the AutoWatch program though Esurance, but now we use if for all our customers. It's incredible. Within the last two years, the majority of our interaction with customers has become electronic. We e-mail updates and photos, and they also have access to AutoWatch, which is a great way to keep them updated and abreast on repairs."
Pera said he grew up in the industry, starting work as a teenager in the shop his father and uncles opened to service their Nissan dealership. About 11 years ago, he said, he bought out the partners and no longer has dealership ties.
The other family member involved in the business, Pera said, is his cousin, Greg Padreddii, who started out as a detailer at the shop like he did, then worked as technician and now is an estimator and "soon-to-be-partner" in the business.
Pera acknowledged that while his shop's location is ideal, the facility he has to work with is not. The shop's 9,000 square feet of space is spread out in three buildings, one of which is on two levels.
A storage lot more than 200 yards away for total losses and other vehicles helps relieve some of the pressure, Pera said, but making the most of every square foot is critical.
"That's one of the reasons we're looking at possibly putting in an in-ground post system--we're looking at the Wedge Clamp system--so each technician would essentially have their own rack system and could do more in that stall with less movement of cars," he said.
The shop uses a Chief Streamliner frame rack and Chief Genesis 2 electronic measuring system. Hunter wheel alignment equipment enables the shop to do its own alignment work in-house, Pera said.
Despite having room in the paint shop for only four or five vehicles, Pera said it is able to consistently process six to eight cars a day through the shop's Spray-Tech booth. A PPG CertifiedFirst shop, Daland made the switch to PPG's waterborne basecoats about a year ago, he said.
"With the training and support we got from Peninsula Color Service, it's actually working out really, really well," he said. "They had their guys over here on here separate occasions to work with us in-house. The color matches are nice.
"The only drawback initially was the dry times, but I think any delays as far as production with the waterborne are mostly attributable to learning a new system. Once you do learn it, you develop the ways to increase speed and quality."
PPG, Pera said, has also helped the shop streamline its operation and also is helping plan the reconfiguration of the shop as it moves to the in-ground anchoring and pulling system.
Pera cited LKQ Corp. as another supportive vendor.
"We use a lot of recycled parts, which I know the old-school autobody people in the industry have shied away from for some reason," Pera said. "We find it very beneficial. It cuts down on looking for clips or piecing things together. Instead of putting seven pieces together, you're putting on a complete assembly.
"Also it helps with the hard-to-find items--inner fenders, inner quarters, those types of things--which improve our cycle time," he said. "There's the marketing aspect as well. We don't look at it as used parts. We look at it as recycled parts and inform our customers that not only are they going to get top-quality, but they're also helping save the environment. A lot of them are happy to go that route once it's explained."
Pera said he's looking at expanding, perhaps by purchasing the building next door or perhaps by adding a second location.
"PPG has offered to support us with that, has helped us look for places, and once we do get it, will help us maximize the potential of it and get us pointed in the right direction," Pera said.
"We're looking from Redwood City to Burlingame, so it would be a move south just a little bit," he said. "I get excited about growing the business. I'm always trying to think of new ways to market, and there are always things to change.
That's the most interesting and exciting part of this business, making those decisions, trying the changes and seeing how they work," Pera said.