March 2010 Edition : Diagnostic & Electronic Repair / Automotive Training & Education
Member : Login | Register
Colorado Auto Body bounces back from near closure to add off-site estimating office

By Michael Anderson
placed Tue, May 1st, 2007
Tool Sponsor
RSS Feed
Select feed
  Bloglines   Yahoo  
  Newsgator   Google  
  windows   My MSN  
  FeedReader   myAOL  
  EarthLink   Netvibes  
more »
style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 150%">            Aurora, Colo.--In 2005, Bill Lipsitz said he had too many eggs in too few baskets. His collision repair facility, Colorado Auto Body, had become reliant on large direct repair programs (DRPs), he said. As insurers changed their business practices, he said his business' volume declined to a point of desperation, and he pondered closing his 21-year-old business.Bill Lipsitz (l.), owner of Colorado Auto Body, recovered from a near closure in 2005 by diversifying and adding an off-site claims center that now accounts for 20 percent of his sales. With him, from l., are Office Administrator Joanne Leonard, Parts Facilitator Scott Carlson, and Shop Manager Tim Vaughn.             "I looked in the mirror and asked myself who the worst employee was and discovered it was me," Lipsitz said. "I knew I had to get out or do something about it."             It was then that Lipsitz said he decided to diversify his clientele and pursue business from several small fleet accounts and small insurers to keep the business afloat.             "I did some cold calling, door to door" Lipsitz said. "It changed the course of my business." He said persistence paid off because he now has a larger, more diverse customer base. "Instead of a $1 bill, we now have 20 nickels," he said of those customers.             In a negative environment, people start pointing fingers, he said. "If you start with a negative attitude, you're lost." As business picked up, negative attitudes and behavior became a thing of the past, he added.             Part of the shop's restructuring involved adding an off-site estimating facility a few miles away at 6746 S. Revere Parkway, Suite B-180, in Centennial last December, where estimates are conducted by appointment.             Lipsitz said he and Shop Manager Tim Vaughn conduct up to five estimates a day at the Centennial site. The service, he added, is seamless for the customer who drops the vehicle off there, which is then driven or towed to the shop at 1465 Dallas St. When it's ready, the customer can then pick it up in Centennial, he said, adding that driving vehicles back and forth between the two locations gives him the opportunity to catch any unforeseen problems.             Although Lipsitz said he has conservative growth expectations for his estimating site, in only five months, it now accounts for 20 percent of the shop's sales. "As demand picks up, maybe down the road we can open a second shop." Colorado Auto Body Technician Jorge Ochoa Jr. prepares a 2002 Honda Civic before it enters the paint booth.            Lipsitz said he measures sales volume through cycle time, dollars earned per square foot, and, most important, gross sales on a daily and monthly basis. He uses a Web-based program, ProfitNet, to track a vehicle's progress from bodywork, to paint, to final assembly. It works well, he added, because he can access it from his estimating facility to stay connected with the shop.             It's a delicate balance, however, to maintain healthy profit margins, he said.             "You have to make sure you don't get too top-heavy where everything you make is going to pay your staff," Lipsitz said. Keeping office staff to a minimum, he said, can be a path to profitability. Assisting in the office are Joanne Leonard, office administrator, and Scott Carlson, parts coordinator, he added. In the shop, he said he employs six body technicians and three painters.             "It gives me the ability to keep it personal," he said of his position as an owner and operator. "People want that today; customer service gets lost in big companies."             To keep repair procedures consistent, Lipsitz said he uses practices gleaned from DuPont's Performance Alliance affiliation.             For example, he said, one tech may use 80-grit sand paper on a particular job while another prefers 150-grit. "By setting a guideline, we have a set procedure," he said, eliminating variance. Setting repair standards can be challenging, he said, because many DRPs have their own guidelines and procedures.             To straighten frames, Lipsitz said his technicians use two Chief frame racks in conjunction with a Genesis II electronic frame-measuring system.             When it comes to replacement parts, Lipsitz said he uses OE, aftermarket, and recycled parts depending on the situation. "It comes down to who we're serving," he said. Some aftermarket parts, he said, slow down cycle time if they don't fit properly and end up needing to be replaced with OE. However, he added, "Aftermarket parts keep the prices down, and fewer cars are totaled."Colorado Auto Body Technician Trent King tightens bolts down on a door hinge of a 2005 Jeep Grand Cherokee. The Jeep sustained damage in a parking lot near Denver International Airport when a gust of wind caught the door as it opened.             In choosing which vendors to do business with, Lipsitz said he tries to align himself with companies he can build relationships with. For Mopar parts, he said he relies on Perkins Dodge in Colorado Springs, who has treated him well over the years.             To put the finishing touches on a repair, Lipstiz said he sprays DuPont's Standox brand, which he purchases from Choice Paint & Supply, to spray in his three paint booths. The Standox system has fewer application problems than other brands and is simple to use, he said.  





advertisement

Advertising with Parts and People
Print Edition | Online Editon


Parts & People is published monthly by Automotive Counseling and Publishing Company, Inc.
Copyright © 2010 Parts and People
Copyright | Terms of Use | Privacy Policy