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

To Repair or Not to Repair

In today’s tough economic times, when a vehicle is involved in an auto accident it seems many drivers are putting off repairs unless it is an absolute necessity or there are safety reasons. I live on the outskirts of a major US city and travel often for my business. I am amazed at the vehicles I see with dents, dings, scratches, and scrapes that in years past would have been repaired but today in my opinion the owners are opting for later repairs or not repairing at all.

I completely understand that if the vehicle is 100% owned by the driver it is their prerogative to repair or not especially if it’s an older vehicle. However, if the vehicle is leased, financed, or a newer model in decent shape, chances are there is full coverage on the vehicle and should be repaired. This is where many are playing a risky game of fix it now or pay later. 

Shops are feeling the squeeze because auto claim volume is down. I have spoken to many auto insurers this past year and they report claims off anywhere from 10-20 percent. This drop in activity accompanied by the reluctance to even repair a vehicle has many shops questioning their survival.  Where in the past these vehicles would be repaired, we now find more and more people shopping their estimate, looking for deals on saving their deductible, or simply not repairing the vehicle if they can get around it. 

In many cases this impacts the quality of the repair or compromises the safety of the vehicle. Most vehicle owners cannot determine if there car is safe or not once it has been involved in an accident.  That is the job of a licensed appraiser or a quality repair shop to make the determination. Let’s face it, some of the minor dings and dents we see can be lived with without repair if you so desire. However, the majority of what I have been seeing lately on I-95 need quality repairs and not alternative ways to “fix it later”.

--Joe 

Your employees know more than you think

Are you looking for ways to increase profits, decrease costs, and improve morale in these uncertain times? Your best resource for fine tuning your business lies right within your business--your employees!

When I was consulting with various groups of Collision Repair centers, it was not uncommon for me to perform an employee survey in order to understand (from their perspective) the conditions of the business, their opinions of management, other employees, and how their job could be improved. With every business case review I conducted, I was able to get a pretty good understanding of the operations within a day of review and observations. However, every time I conducted an employee survey I learned something new, confirmed my observations and discovered a new element of the business.

Surveying your employees is relatively easy, especially with today's technology. You can remain totally anonymous (which I highly recommend). The most difficult part of conducting a survey is determining which questions to ask. In order to uncover the best questions, you need a firm understanding of what it  is you are looking to find out.

Some ideas you can survey your employees about include:

1: Confirmation of marketing ideas or "your brand image"

2: Cost cutting ideas within each department (even provide a dollar incentive to the winner)

3: Ways to improve process flow and operations

4: Perceptions of managers and management

Getting your employees' input is a great source of information and it also creates an atmosphere that demonstrates you care.

Check out some of the online survey sources available to you, they are easy to administer and provide you with automatic results, graphs and details. Constant Contact and Icontact are a couple of my favorites. You can also use the traditional paper method, however I really believe keeping the information administered from a third party is best; you will get more depth and honesty from the employee if they believe the information is not management administered.

Try a survey of your employees today! You will be happy with the results.

- Alan

Nominate an instructor

Beginning August 3rd, the I-CAR Education Foundation will open its call for applications for the I CAR Education Foundation's Instructor of the Year award. The winner will receive an expense-paid trip to NACE 2009 and the instructor will be recognized for his or her selection.

This award is open to all collision repair instructors teaching at career and technical schools as well as colleges that utilize the I-CAR Live Curriculum. You can nominate an instructor for this award at www.ed-foundation.org.

It's a great way to thank someone who has taught you and gone the extra mile.

--Beth

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

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

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