We've "scene" it all--The SceneExchange Blog

Kansas/Missouri Midwest forum Meeting

Representatives of ASA Kansas, SCRS Kansas and AASP Missouri recently sponsored a day long collision industry event. The meeting was attended by 60 collision repairers and industry representatives.

Craig Brace of Pure Media was the featured guest speaker that presented a case for the power of brand and the consistency of your brand. In addition, there was  a review of new media opportunities in the areas fo Twitter, Facebook, iphone and YouTube. Craig emphasized the need to review your web site and consistency of your brand. As well as looking for creative ways to utilize your website with new media opportunity and to capture more customers.

Renowned I-car instructor and industry spokesperson Toby Chess presented his always enjoyable audience interactive presentation of how to gain more dollars on each repair order. There was a review of a claim and the audience each looked for lost dollars that could be obtained by reviewing all activities taking place on the claim. On average there is $25 of lost dollars on every claim and in these tight economic times every shop should make certain they implement processes to capture these lost dollars.

Karen Fierst of KerenOr Consultants provided the audience an update on the use of aftermarket parts and the status of legislation around the use of after market parts. Karen always provides an informative and current presentation regarding CAPA certified parts usage and the issues that are faced today with the use of aftermarket parts.  The audience also participated in survey regarding the use of aftermarket parts in their shops.

David McCreight of Collision Resources provided an excellent presentation of the HeiJunka principle to maximize cycle time and production flow. The theory is just one part of a larger principle of lean management.

Representatives for each of the sponsorship groups provided an update on what each of their organizations are working toward and regional meetings that are taking place.

Jeanne Silver provided emcee for the day and monitored what this group of industry stake holders feel are the top issues in the industry and within their own organization. 

Those issues are:

1. Blend within a panel and P&M caps.

2. Need a united front in Missouri and Kansas groups on what it is they want to accomplish. There are several legislative issues being brought before the Missouri house and the group needs to focus as a single entity of what it is they want to accomplish (such as licensing of repair shops).

3. Steering issue and deceptive practices.

4. Rate suppression - disparity on how rates are determined.

We also had a conversation regarding the new EPA laws and regulations going into effect this year.  I was able to share with the group that Scene Genesis will be hosting a Podcast on this subject in July and we will also be hosting the training video on our site. Keep your eyes on our Podcasts for information on this subject.

Scene Genesis and our SceneExchange product were proud to be represented at this meeting and share our industry knowledge while learning about the local issues that effect our business partners.

--Alan

Polk Survey Is a Glimmer of Hope--Maybe

 

As US automakers wring their hands waiting for an auto sales recovery, market firm R.L. Polk and Company says sales in the auto market should be heading up by 2011. The majority of US consumers they surveyed (55%) plan to buy their next vehicle within 2 years. The highest numbers of purchase intenders were in the Plains states and lowest in the Great Lakes region. This is obviously good news for automakers who have excess inventory to move.

On the other hand, here are some other pieces of information from the study that aren't as rosy for automakers.

• The average length of vehicle ownership is increasing (up to 56.3 months now)
• 70% of respondents would consider a used vehicle
• Two-thirds of people are likely to keep their vehicles longer than they would otherwise

If people are willing to hang onto their cars longer and consider used vehicles, the market for new cars is still looking on the weak side. What's your take?

--Beth

Consider this a "reprint"

I don't often do a "cut and paste" on our blog, but I stumbled across an article about Sterling Autobody Centers from Fast Company magazine. I thought that their guiding principles were good ones--and written up so well--that I am showing it here as it originally appeared on Fast Company's website. These three points make lots of sense to me...

1. Do the little things right. As part of damage analysis, technicians take each wrecked vehicle apart, making sure to "bag and tag" the smallest components and then store them on that car's parts cart. Otherwise, a $4,000 repair could stall over a broken or missing $4 part.

2. Don't start what you can't finish. In some body shops, technicians start a repair based on which parts have come in first. Then they stop and wait for more to trickle in. Sterling uses a parts broker, who ensures that all of the parts arrive at the same time. Only then does the work begin. "If you were baking a cake, you wouldn't start if you didn't have the eggs," says Bill Little, general manager of the Sterling shop in West Chester, Pennsylvania.

3. Clean is good. The repairs may get messy, but the shop doesn't have to. Sterling insists on keeping its centers clean and orderly -- not just because its customers can watch the activity through the large windows out front, but also because it sets the right tone. Employees are repair professionals, not grease monkeys. "There's no spitting," says Little. "You see that at other shops, but I don't want people doing it here. This is where we come to work every day. I want it to look nice."

Follow this link to read the entire article. Enjoy!

--Beth

Collision Repair Is A Negative Service--and How to Overcome it

For most people, services fall into categories of "normal" or routine--such as getting your haircut, dry cleaning, etc. But, there is another type of service--negative service--that is related to an event that  people hope they will not have to deal with (toothache, leaky roof). Collision repair falls into that category.

Since the triggers for these events are not everyday occurrences, people are not prepared to figure out what they need to do, or how to go about best solving the problem. It is difficult for the average Joe (or Jane) to make an informed judgement about what they need. Even after the service has been provided, it is hard to judge if the price paid or the quality of the job are fair.

If you are servicing customers in a negative service category, you have two main obstacles to overcome:

1. You have inexperienced customers who do not know how to evaluate your service (and may have a poor idea of the costs)
2. You must figure out how to meet customer service when demand is unpredictable

There are still things you can do to expand your market positions and build your competitive advantage.

Build your brand. A strong brand helps make your company top of mind when someone needs repair services. If people are trying to take care of their negative problem quickly, they will begin by looking at firms that are familiar to them.

Provide information. Service providers that are able to show customers in how to evaluate what they’re getting come out ahead. By making sure people have access to information they trust (provided by you, of course) can help people to select you instead of relying on a referral. Your website is a good place to house information of this sort.

Cultivate customers. Establishing a customer base is difficult for negative service providers. Customers hope to avoid needing the service—and have no desire to become regular customers. You can sew the seeds by connecting with a customer base from another business, such as a mechanical repair shop and making sure your name is recognizable to them. Look for a company that you can reciprocate with.

I hope this gives you a new perspective on where your customers are coming from. Turning your "negative" into a positive may be one of the best things you can do!

--Beth

We've got a HUNCH this website can help solve your burning questions

Here's a quickie, just for fun.

Hunch.com bills itself as a way to help you make decisions that gets smarter the more you use it. Does this mean it can become a crystal ball to tell my future? Well, I wouldn't go that far...however, it can tell me what book I'd like to read, what shirt I should wear, whether or not I should have my DNA sequenced, and what extreme sport is best for me.

Hunch runs an algorithm built by MIT computer scientists that answers your question with a series of them. Your answers allow it to build information about your preferences, lifestyle, etc. Each one narrows the field of outcomes, so the more questions you answer the better your recommendation.

Give it a try and tell us what it recommends for you.

--BEth

PS. Here are some stats based on Hunch's users:

• Hunch users preferring a Vespa like veggies on their pizza; those preferring a Harley tend to favor the death penalty.

• The 22% of Hunch users who are afraid of clowns tended to know what math was before kindergarten.


• Fact: 59% of Hunch users say they like the smell of Play-Doh.

Keenan Auto Body charity golf outing success

The annual Keenan Auto Body Golf Outing was another success despite the bad weather; the outing raised over $25,000 for the Philadelphia Ronald McDonald house and Scene Genesis was proud to sponsor the #2 hole. Our own Alan Murdy toughed it out all 18 holes in the pouring rain and even made the winning putt on our sponsored hole. Joe Cosgrove, our Director of Insurance Relations, made the "smarter choice" of not golfing, but attended the dinner banquet and tried to get his colleague to “blind bid” on a small pedal car that he certainly didn’t need. Fun was had by all and—most importantly—another charitable organization has benefited from the efforts of the Keenan organization and the collision industry. --Alan

Are you one of the best shops in the country?

ABRN is holding their first ever Top Shop Contest.Find out more at ABRN’s Top Shop Contest.

Entering is a four-part process:
• complete your company profile;
• write an essay based on 15 aspects of your business;
• provide the appropriate photographs showing various areas of your shop; and
• submit all materials to ABRN by Aug. 19, 2009.

There will be 10 winners and one grand prize winner from that group. The Grand Prize winner and will be featured on the cover of the December 2009 issue of ABRN. All 10 winners will be profiled in an in-depth report inside the magazine and on their Web site.

Give it a shot, being named a top shop would be a real honor.

--Beth

From the shops' point of view--insurance companies

Body Shop Business has released their 2009 Industry Profile that focuses on Insurer-repairer relations.

Here are a couple of key points:

• The overall best rated insurance company is Progressive, the worst is State Farm. But even the top scorer rated only a cumulative point value of 24.5 out of a possible 45--barely over 50%.
• The insurance company cited most often for refusing to pay for OEM parts is Progressive.
• The number of respondents involved in a DRP has dipped slightly from 48% in 2007 to 44% in 2009.
• 75% of DRP shops think that repairer/appraiser relations have stayed the same vs. 50% of non-DRP.

These are just a few highlighted statistics, to see them all follow this link and download the .pdf.

I am always surprised (though I guess I shouldn't be) that the best-rated companies rank only around 50% on a variety of measures, including the expertise of their adjusters, the consistency of their policies on repair procedures and the fairness of their reimbursement policies. I, personally, would like to think that my insurance company would go out of their way to forge strong industry relations...

--Beth

Thinkin' about compensation

What's the best way to compensate technicians? Salary? By the hour? Flat rate? Commission? If you talk with a sampling of shop owners they all have their own take.

No matter what your view, it's important to have a great plan in place. Any compensation place should have these elements:

• Each team member has the chance to earn higher income
• Outstanding performance, and ideas, are rewarded
• There is secure employment in a financially stable business
• Loyalty and longevity are rewarded
• The company goals are clear

Shops stress building a family-feeling, though dinners or time off (with pay) to attend a child's activities--even just bringing in donuts.

Consider adding perks such as: taking employees to NACE, insuring their tools, bonuses, birthdays off, year-end profit sharing. Again, each shop is different so think about what would be valuable to your technicians. What would they value?

After all,it hard enough to find a good technicians--make sure you are being fair so they stick around.

If you haven't listened to it already, follow this link to our podcast area and listen to Mark Claypool's podcast about workforce development.

--Beth

Follow up the Toyota parts stock piling post

Recently, I wrote about Toyota's choice to stockpile parts (click here to read it) in case any of their parts suppliers went under.

Interestingly, in a survey released last week by Planning Perspectives, Inc, Toyota has moved from a rating of "Good to Very Good" in terms of supplier relations to "Adequate". Suppliers were ranked in areas such as: willingness to help suppliers cut costs, paying for canceled programs and rewarding top suppliers with new business.

Toyota is still above the industry average--while the Detroit 3 are below it. Could this new ranking reflect Toyota's current stockpiling philosophy. Is it, indeed, sending a lack of confidence vote to suppliers at a critical time?

Oh, and the biggest turnaround in the rankings? Ford. I sense some trends starting here...

--Beth