Inside this issue - CollisionAdvice.com
Transcription
Inside this issue - CollisionAdvice.com
The End of Choice?: The Hard FAX on PartsTrader’s Latest Move - page 28 October 2013 Volume 7, No. 10 $5.95 www.wmaba.com Inside this issue: COUNTING DOWN TO SEMA INSIDE OEM REPAIR PROGRAMS THE GREATEST THREAT TO YOUR SURVIVAL www.grecopublishing.com October 2013 3 4 October 2013 6 October 2013 34 COVER STORY KNOWLEDGE = PROFIT: CONTENTS WMABA OPENS THE ENCYCLOPEDIA OF ESTIMATING OCTOBER Inside Mike Anderson’s revolutionary presentation in Springfield. 2013 BY JOEL GAUSTEN LEGAL PERSPECTIVE 16 Resolving Complaints With Insurers Through the Maryland Insurance Administration Relief is available for consumers with insurer complaints. DEPARTMENTS BY JAMES A. CLEAVER, SENIOR PARTNER, LAW OFFICES OF ALEXANDER & CLEAVER 8 NATIONAL NEWS 18 Repairer Driven Education: How SEMA 2013 SCRS creates a can’t-miss schedule at the industry’s biggest event. Will Revolutionize Your Business TECHNICAL FEATURE OEM Collision Repair Programs 22 AInside look at some things to expect when getting involved with a manufacturer's network. 11 Editor’s Message JOEL GAUSTEN 13 President’s Message BARRY DORN 14 NewsFlash 17 Headliners 46 What’s WMABA Up To? 49 BY JEFF LANGE, PE & LARRY MONTANEZ III, CDA 50 Executive Director’s Message JORDAN HENDLER Advertisers Index PHOTOGRAPHS AND ART BY NATIONAL FEATURE 28 The End of Choice? The Hard FAX on PartsTrader’s Latest Move Calendar of Events Cover photo by Joel Gausten State Farm makes new enemies over PartsTrader’s decision on vendor choice. THIS PAGE, CLOCKWISE FROM TOP: ©istockphoto.com/dem10 ©istockphoto.com/combomambo ©istockphoto.com/iconeer ©istockphoto.com/derrrek ©istockphoto.com/alexskopje BY JOEL GAUSTEN October 2013 7 CALENDAR OF EVENTS Industry Training, Meetings & Don’t-Miss Opportunities FIND MORE RESOURCES & UPDATES @ www.wmaba.com November 5-8, 2013 SEMA SHOW 2013 Las Vegas Conven tion Center, Las Vegas, NV For more inform ation, visit www.s emashow.com/sc rs.com No vember 5, 20 13 SCRS OPEN MEET ING – ASSOCIATIO N ADDRESS Collision Repair & Refinish Stage , Las Vegas Conven tion Center, Las Vegas, NV For more inform ation, visit www.s crs.com November 6-7, 2013 COLLISION INDUS TRY CONFERENCE Las Vegas Hotel , Las Vegas, NV For more inform ation, visit www.c iclink.com CLASS LISTINGS October 1, 2013 STRUCTURAL STRAIGHTENING ALUMINUM State Farm Insurance, Roanoke, VA OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESS Virginia Farm Bureau, Lexington, VA October 2, 2013 OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESS Coxton's Gold Team Collision Center, Yorktown, VA October 7, 2013 VEHICLE TECHNOLOGY & TRENDS 2013 First Team Toyota, Chesapeake, VA FULL-FRAME REPLACEMENT Coxton’s Gold Team Collision Center, Yorktown, VA October 8, 2013 RACK & PINION & PARALLELOGRAM STEERING SYSTEMS Coxton's Gold Team Collision Center, Yorktown, VA MEASURING Carquest Distribution Center, Winchester, VA October 9, 2013 CORROSION PROTECTION Hampton Inn Waldorf, Waldorf, MD October 10, 2013 STEEL UNIBODY, A-, B-, C-, D-PILLARS & ROCKER PANELS Frederick Co. Career & Tech, Frederick, MD STEEL UNIBODY FRONT & REAR RAILS, FLOORS & FRONT STRUCTURE Priority Toyota, Chester, VA October 12, 2013 DETAILING Safford Collision Center, Winchester, VA HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Safford Collision Center, Winchester, VA October 14, 2013 COLOR THEORY, APPLICATION, TINTING & BLENDING First Team Toyota, Chesapeake, VA STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR Coxton's Gold Team Collision Center, Yorktown, VA October 15, 2013 WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Coxton's Gold Team Collision Center, Yorktown, VA STEEL UNIBODY FRONT & REAR RAILS, FLOORS & FRONT STRUCTURE Best Western Westminster, Westminster, MD 8 October 2013 October 17, 2013 STEEL UNIBODY, A-, B-, C-, D-PILLARS & ROCKER PANELS Priority Toyota, Chester, VA October 21, 2013 STEEL UNIBODY, A-, B-, C-, D-PILLARS & ROCKER PANELS Coxton's Gold Team Collision Center, Yorktown, VA OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESS First Team Toyota, Chesapeake, VA October 23, 2013 AUTOMOTIVE FOAMS Hampton Inn Waldorf, Waldorf, MD REPLACING EXTERIOR ALUMINUM PANELS Coxton's Gold Team Collision Center, Yorktown, VA October 24, 2013 BLUEPRINTING PROCESS & DAMAGE DISCOVERY Frederick Co. Career & Tech, Frederick, MD October 28, 2013 I-CAR HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Priority Toyota, Chester, VA MEASURING First Team Toyota, Chesapeake, VA October 29, 2013 INSPECTING REPAIRS FOR QUALITY CONTROL Coxton's Gold Team Collision Center, Yorktown, VA November 4, 2013 SQUEEZE-TYPE RESISTANCE SPOT WELDING First Team Toyota, Chesapeake, VA BEST PRACTICES FOR HIGH-STRENGTH STEEL REPAIRS Coxton's Gold Team Collision Center, Yorktown, VA DAMAGE ANALYSIS OF ADVANCED AUTOMOTIVE SYSTEMS Best Western Westminster, Westminster, MD November 5, 2013 AUTOMOTIVE FOAMS Carquest Distribution Center, Winchester, VA STRUCTURAL STRAIGHTENING STEEL Coxton's Gold Team Collision Center, Yorktown, VA November 7, 2013 VEHICLE TECHNOLOGY & TRENDS 2013 Priority Toyota, Chester, VA MEASURING Hampton Inn Waldorf, Waldorf, MD November 11, 2013 ALUMINUM INTENSIVE VEHICLE REPAIRS Coxton's Gold Team Collision Center, Yorktown, VA STRUCTURAL STRAIGHTENING STEEL First Team Toyota, Chesapeake, VA November 12, 2013 REPLACEMENT OF STEEL UNITIZED STRUCTURES Coxton's Gold Team Collision Center, Yorktown, VA November 14, 2013 STEEL STRUCTURES DAMAGE ANALYSIS Frederick Co. Career & Tech, Frederick, MD November 18, 2013 COLLISION REPAIR FOR HONDA & ACURA VEHICLES First Team Toyota, Chesapeake, VA STEEL FULL-FRAME TECHNOLOGIES & REPAIR Coxton's Gold Team Collision Center, Yorktown, VA November 19, 2013 STEERING & SUSPENSION DAMAGE ANALYSIS Coxton's Gold Team Collision Center, Yorktown, VA November 21, 2013 STEEL UNITIZED STRUCTURES TECHNOLOGIES & REPAIR Hampton Inn Waldorf, Waldorf, MD HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Frederick Co. Career & Tech, Frederick, MD November 25, 2013 COLLISION REPAIR OVERVIEW FOR THE CHEVROLET CORVETTE Z06 Coxton's Gold Team Collision Center, Yorktown, VA PLASTIC & COMPOSITE REPAIR First Team Toyota, Chesapeake, VA www.i-car.com or 800-422-7872 for info 10 October 2013 Joel Gausten (973) 600-9288 tgpjoel@verizon.net EDITOR’S MESSAGE THE GREATEST THREAT TO YOUR SURVIVAL After nearly 15 years covering this industry, I’m well aware of the obstacles you face every single day in your business. If you’re a shop owner, everything from cycle time to insurer pressure to dwindling parts profits gives you a headache. If you’re a dealer, you’re faced with maintaining profitability and efficiency while staying competitive with other OEM locations in your market and beating “alternative” parts providers to the finish line. None of the problems are easy to overcome, and I respect and sympathize with your ongoing frustration. However, my travels all over the country on behalf of this industry have enabled me to uncover the single greatest enemy threatening the future of your business: YOU. That’s right. You’re most responsible for any hassles facing your business. You’re the reason you don’t get every penny you’re entitled to on a job. You’re the reason why outside forces are slowly (and, in some cases, not so slowly) taking over every aspect of your operation. How do I know so much about your problems, and what gives me the right to blame you for them? The answer is simple: I don’t see you at the dozens of meetings I attend all over America on an annual basis. I don’t see you sending your estimators to events like the one featured in this month’s cover story. I don’t see you caring enough about yourself to attend an association meeting in your market area. I don’t see you doing anything. I can’t tell you how many times I’ve stepped out of a hotel or conference center during a break at a management/technical seminar, seen a body shop right across the street and wondered why nobody from that business took the time to walk over and learn something. If you care this little about your business, how much do you care about your customers? Are you learning about how new vehicle designs are forcing this industry to rethink its equipment needs and repair practices? I bet you’re not, because I didn’t see you at that seminar, either. Shops are overcapacity in most markets, and there just isn’t enough work for everyone. Are you going to take the initiative to learn as much as you can to survive, or are you going to read this message for the first time when you flip this magazine open while cleaning out your desk after you go out of business? If you’re a dealer, have you been doing all you can to make sure your parts customers know everything they need to about the parts they’re buying? Are you helping them learn about all those technologically advanced cars your sales department is putting out there in the market? If not, you are failing your client base, your employees and the future of your dealer’s entire parts operation. The days of polite requests for you to get involved are over. It’s time to either get up to speed with your industry, or step aside and let the committed shops and dealers out there take advantage of your opportunities. We simply can’t wait for you any longer. I truly hope this message hit home to you, because you’re running out of time to ignore it. H&D 2013 WMABA OFFICERS PRESIDENT VICE PRESIDENT TREASURER SECRETARY IMMEDIATE PAST PRESIDENT Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061 John Krauss jkrauss@craftsmanautobody.com 703-534-1818 Brad Whiteford whitefordsrefin@aol.com 757-538-1400 BOARD OF DIRECTORS Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Geoffrey Brown (gbrown@nycc.edu) 703-845-6475 Mark Boudreau (crashdaddy@aol.com) 703-671-2402 Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 ADMINISTRATION Daniel Morrissey (danielmorrissey@comcast.net) 443-938-2243 Mark Schaech Jr. (mark@marksbodyshop.com) 410-358-5155 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128 EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116 STAFF PUBLISHER MANAGING EDITOR EDITOR ART DIRECTOR OFFICE MANAGER ADVERTISING DIRECTOR Thomas Greco tgp22@verizon.net Alicia Figurelli tgp2@verizon.net Joel Gausten tgpjoel@verizon.net Lea Velocci tgp3@verizon.net Brandi Smith tgpbrandi@verizon.net PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2013 Thomas Greco Publishing, Inc. Norman Morano tgp5@verizon.net 800-991-1995 Fax 732-280-6601 October 2013 11 12 October 2013 PRESIDENT’S MESSAGE FIND MORE ASSOCIATION UPDATES @ www.wmaba.com Equipping Yourself and Your Business for the Future With the constant and ever-changing landscape of the collision repair industry, we all must keep in mind that what is old is new again. Vehicles are going through design changes (in some cases, every 120 days), and their compositions are becoming more and more exotic. Using yesterday’s work practices on the shop floor or in the office will only result in failure, liability issues or worse. If we want to succeed, we have to keep investing in our employees, both in internal and external training and buying and upgrading our equipment. As an industry, we are famous for putting off needed training due to cost constraints and time away from the business. Why do we do this when we have so many economic and effective tools at our disposal? Keep in mind that it’s not only you who needs training – your staff needs it too, now more than ever. I see so many production managers, blueprinters and other support personal unaware of - or not offered - the ability to grow with the vehicles they work with. Not to mention the technicians who desperately need to understand and clearly comprehend what they are working on. Today, we have a great solution available to everyone: The SEMA Show in Las Vegas next month. You cannot and will not find a better selection of classes and training strictly for the collision repairer. These classes are literally for everyone within your organization, from the owner/manager to your technicians and office staff. The WMABA-affiliated SCRS has really put together a really great schedule called RDE (Repairer Driven Education) at SEMA, and I can tell you that these courses have really benefited WMABA members at their businesses from the day they returned from the show. You also have more than 1 million square feet of show space filled with the newest equipment that you will need to stay in business and repair the vehicles that are out now. As a business owner, you will have everything that you could want in one convenient space. Bring your management staff. Send out that assistant who has been showing he or she has a real passion for the business. Send the technicians who clearly show that they are always investing in themselves and striving to do better. Having attended the SEMA Show many times over the years, I can tell you that it is well worth the trip. The amount of exhibitors and products available can be overwhelming; if you plan ahead, the experience will get you and your staff thinking of all the possibilities that could be integrated into your business. Think about it and try something different this year that will invigorate you and your staff. Take an early step to start 2014 in a new and positive light. I look forward to seeing you all in November at SEMA, if not before then at the next WMABA meeting. H&D October 2013 13 ©istockphoto.com/kimberrywood Barry Dorn (804) 746-3928 bdorn@dornsbodyandpaint.com NEWS FLASH Allstate Settles Labor Rate Suits with FL Shop On August 7, Allstate Insurance provided full payment to Gunder’s Auto Center in Lakeland, FL to settle 12 pending lawsuits for short-pays on Labor Rate differences, plus attorney fees and costs. In June 2013, Allstate claims representatives Tom Travis and Greg Ashley contacted owner Ray Gunder and requested a meeting to discuss Allstate’s interest in bringing closure to the lawsuits that he had filed against the nation’s second largest insurer on behalf of a dozen of his customers. “I’m always open to communication in good faith,” explains Gunder. “They were very forthcoming and candid about their personal feelings – as well as their company’s feelings – on what I’ve been doing. They thought I was doing the right things for the right reasons at the right timing. Within a couple of days of them being out here and discussing the issues openly, they settled all the cases.” In July, Gunder’s was advised that Allstate would settle all 12 pending lawsuits by paying the full Labor Rate and all related attorney fees and costs. Full payments – ranging from $198.16 to $1,575.24 – were received 14 October 2013 on August 7. Allstate makes the 44th insurer to date that has agreed to pay Gunder’s full Labor Rates and materials. “I am very appreciative of the way this was handled by Allstate,” states Gunder. “No one wants litigation; however, sometimes it is needed to get disputes resolved. My hope is that this is truly a new way Allstate does business nationwide and they speak to the entire industry with one voice. Not all shops are the same; as such, they deserve to be compensated based upon the quality of their service and offerings.” Gunder says that only State Farm, USAA, Travelers and Progressive currently refuse to pay his Labor Rate, but that Progressive is in the process of making things right. “Progressive has been negotiating with me in good faith and have promised to move any day,” he says. “They’re the only company out of all of them that actually has been in communication with me constantly.” At press time, Gunder was in depositions with GEICO regarding a series of suits he has launched against them over short-pay issues. “My hope is that the insurance companies will understand and respect our industry and where we need to go, and speak to all of us across the country in one voice instead of pockets being treated differently,” he says. In related news, State Farm filed a request with the Polk County Court in Florida in late August to prevent Gunder from distributing information and videotapes of depositions he obtained through discovery in his shop’s breach of contract suit against the insurer to various industry representatives and members of the media. Gunder intends to fight any and all attempts from the insurance industry to silence him. “I will never quit sharing this journey,” he says. “I don’t care how much fear they try to put into me and how much they twist my wording around. I am not going to stop.” H&D Conquest your Mitsubishi parts needs! Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems. Ultra-Conquest Collision Parts Program Highlights: • • • • • • • Discounted prices on quality new and unblemished OEM parts Automated price and part selection in collision estimating systems High parts availability Delivery to most major U.S. cities within 24 hours Available through all participating Northeastern area Mitsubishi dealers Includes the majority of key collision components for select popular models We can meet or beat aftermarket prices! To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer. For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers. Fitzgerald Mitsubishi 1930 West Street Annapolis, MD 21401 Direct: 410-224-4636 Fax: 410-224-4264 E-mail: adamsf@fitzmall.com Younger Mitsubishi 1945 Dual Highway Hagerstown, MD 21740 Direct: 800-296-1190 Fax: 301-733-5465 www.youngermitsubishi.com Malloy Mitsubishi 14655 Jefferson Davis Hwy Woodbridge, VA 22191 Wholesale Parts Direct: 703-494-2014 Fax: 703-494-1792 hmkparts@aol.com Buy Genuine Mitsubishi Parts and get the perfect fit at the perfect price. 10% off on all parts orders when you mention this ad. October 2013 15 BY JAMES A. CLEAVER LEGAL PERSPECTIVE Senior Partner, The Law Offices of Alexander & Cleaver 16 RESOLVING COMPLAINTS WITH INSURERS THROUGH THE MARYLAND INSURANCE ADMINISTRATION Undoubtedly, much of WMABA’s business is paid for by motor vehicle insurance. Either your customers utilize their collision coverage, or the other driver’s liability insurance company pays for the repairs. The second type of transaction is much more likely to create strife and disagreement than one that is limited to the auto body shop and customer. In the first arrangement, you meet with the customer, inspect the damage and estimate the repairs. The customer is best able to understand the work involved, the process and the costs. The dynamic can and often does change dramatically when you introduce a third party, the insurance company, into the transaction. They may not agree with you and the customer on any number of things – the scope of the work, the costs of the parts and/or labor, etc. Your customer becomes disillusioned and may unfairly blame you for his or her unfulfilled expectations. The Maryland Insurance Administration will investigate and may take appropriate action on behalf of anyone dissatisfied with an insurance company. October 2013 Once a complaint is filed with the Maryland Insurance Administration (MIA), they will investigate in order to determine if the insurance company has violated state law, regulation or order in its dealings with the complainant. They can compel the insurance company to produce accounts, records, documents, files, logs, photographs or other information necessary to complete their investigation. The MIA has broad power to enforce state law. A complaint can be filed either by a written letter or by going to the MIA’s website and filing a complaint online. Finally, the MIA has a “Rapid Response Program” to help Maryland residents resolve these disputes directly with the insurer. H&D James A. Cleaver is the senior partner of the Law Offices of Alexander & Cleaver. Jim co-founded the firm in 1984 with Gary R. Alexander. He works primarily in the field of civil litigation, heading up the firm's personal injury practice. In that role, Jim is the firm's primary negotiator and litigator in personal injury cases, using his vast experience and knowledge acquired over parts of the past five decades to achieve results for clients. Jim has been designated a Super Lawyer in personal injury cases, was named one of Maryland's top trial lawyers and was selected by the prestigious Million Dollar Advocacy Forum. He can be contacted at (301) 292-3300. HEADLINERS The Latest News & Notes MONTANA TECH DIES IN SHOP FIRE Photo credit: NBC Montana/Aaron Hall A tragic work-related event has cost a 44-year-old collision repair technician his life. Bruce Hall, an employee of Rick’s Auto Body in Missoula, MT, died on the morning of August 20 at Harborview Medical Center in Seattle from a vapor explosion caused by lacquer thinner that ignited from a static charge in a car bay at the back of the shop the day before. Speaking with NBC Montana on August 20, Hall’s sister Laura remembered her brother as a generous man who went out of his way to help others. "For instance, next week he was going to take a week of unpaid vacation to drive a friend of his to Minnesota for a family issue," she said. "That's just the kind of person he was." "He was definitely one of the most kind people that you'd run in to," added Hall's son Aaron in the NBC Montana report. "He could definitely see the positive in people, even if other people couldn't." Shop owner Rick Booth told the Missoulian that the entire shop is devastated by Hall’s death. “It’s a tragedy,” he said. “It’s not what we expect to have happen when we come to work.” On August 29, Missoula Fire Marshal Gordy Hughes told the Missoulian that the explosion was a “misfortunate accident,” adding that Rick’s Auto Body was “not negligent as far as the fire department’s perspective.” A second employee suffered burns from the incident and was later released from the hospital. Minimal damage was done to the shop; the Occupational Health and Safety Administration (OSHA) was still investigating the incident at press time. The Montana Collision Repair Specialists has set up the Bruce Hall Memorial Fund to assist his family. Please make your check out to “Montana Collision Repair Specialists” and designate “Bruce Hall Memorial” on the check. H&D Mail your donation to: Montana Collision Repair Specialists 1000 Silurian Lane Sidney, MT 59270 October 2013 17 NATIONAL NEWS Repairer Driven Education: Information and Updates from WMABA and Beyond How SEMA 2013 Will Revolutionize Your Business It’s time to take your business into the future. On November 5-8, the annual SEMA Show will again hit the Las Vegas Convention Center. For nearly a week, more than 130,000 automotive industry professionals from around the world will gather for the most-anticipated event of the year. And WMABA will be there. This month, Hammer & Dolly takes a look at a few of the many ways SEMA will make your business stronger and more profitable. Driving Education Forward For the fourth year running, the national collision repair industry will boast a healthy presence at SEMA thanks largely to the continuing efforts of the Society of Collision Repair Specialists (SCRS), who work diligently to shape and tailor Show offerings and events to best serve their affiliate membership. WMABA is one of many state groups to benefit greatly from SCRS’ activities at SEMA and beyond. “Our affiliation with SCRS gives us the ability to collaborate with associations across the country about issues concerning all of us locally and nationally,” explains WMABA President Barry Dorn. “WMABA and SCRS provide a way for all repair professionals to say what needs to be said in one collaborative voice.” SCRS also provides a way for collision repairers to easily embrace the finest education available in today’s industry. Always looking for new and exciting ways to provide value to attendees, the SCRS Board of Directors developed this year’s Repairer Driven Education (RDE) series to address three distinct tracks – “Understanding Your Business,” “Positioning Your Business” and 18 October 2013 “Enhancing Your Business” – based on feedback from members who had attended past SEMA Shows. “Our goal all along has been to be receptive to the people who are attending and make sure that the program reflects what they’re looking for most,” explains SCRS Executive Director Aaron Schulenburg. “We received an email from an attendee who said, ‘SEMA’s awesome, and RDE is amazing, but the industry needs education so compelling and focused on the issues we face day-today that shops can’t afford to miss it.’ When they said that, they weren’t referring to a specific speaker or a person; they were really referring to subject matter that delivers exactly what shops have to know right now and focuses on the trends that are constantly evolving and re-shaping the industry. From that, we formulated our tracks.” While following individual tracks will offer a strong educational experience, Schulenburg notes that the RDE schedule is also structured to be used a la carte. “The tracks are not restrictive,” he says. “You are not required to follow them; they basically just categorize sections that we’re offering. For example, anybody who wants to attend the classes in the ‘Positioning Your Business’ track but really likes a class from ‘Enhancing Your Business’ can deviate out of the track.” Naturally, this kind of trade show environment has led to continued – and deeply enthusiastic – support from vendors eager to take advantage of the action inside the Las Vegas Convention Center. As of July, RDE registration was up nearly 350 percent from the same time last year, while vendor participation was up a stunning 250 percent over last year. This has resulted in display space extending into the neighboring Las Vegas Hotel for the first time. “Vendors want to be where the buyers are,” Schulenburg offers. “The beauty of SEMA is that it’s a playground of possibilities. Buyers are there, collision repair shops are there and people who are making decisions for collision businesses are there because there is so much opportunity available to them. Vendors want to be there because it is one of the very few growing, thriving areas where they can get in front of an attendee base more massive than anywhere else in this country at any other time throughout the year.” “You can't find that amount of relevant exhibitors or collision-relevant training anywhere else, period,” adds Dorn. “Also, you can experience additional profit centers that exist at SEMA that may not exist in your stores. Repairers need other sources of revenue, and SEMA has it all in one location.” In addition to the RDE tracks, SCRS’ plentiful SEMA schedule includes free 10amnoon classes presented by the SCRS Education Committee, the Thursday Night SCRS RDE Sky Villa After-Party and participation in the latest Repairer Roundtable and Collision Industry Conference (CIC). Among these highlights stands the SCRS Open Meeting – Association Address on November 5, which will provide attendees a rare and unforgettable opportunity to witness part of the SEMA Show floor after hours (5:30pm7:30pm) without the crowds. “While in the education sessions you’re learning about how to better your business and how to address things in your business to make yourself more profitable or marketable, the SCRS Open Meeting is more of an opportunity to learn about the hard work that’s going on to address industry issues that are having an outside influence on your business,” Schulenburg says. “You go to the classes to identify a game plan to address issues internally, and you go to the SCRS Open Meeting to learn what is being done at an industry level to address issues from outside of your business.” Photo credit: www.semashow.com The WMABA Edge As any first-time SEMA attendee learns the moment he or she walks into the Las Vegas Convention Center for the first time, SEMA is a breathtaking – and often overwhelming – experience. While there is an almost unending supply of new experiences to be had on the Show floor, SEMA 2013 will also provide WMABA members with plenty of familiar faces to help guide them through the week. WMABA members who have enjoyed reading Larry Montanez’s hard-hitting technical features in Hammer & Dolly over the years will be able to experience his no-nonsense personality and presenting style live on November 5, when the New York-based repair expert presents a “Damage Report Writing Case Study.” During this intense two-hour seminar, attendees will follow along with case studies on a quarter panel replacement, bumper fascia replacement and cosmetic damage to the body side components of a vehicle. All required procedures, additional procedures, materials, included, non-included and additional items will covered through this study. Participants will leave the course with a greater understanding of the P-Pages, a clearer idea of how to calculate certain procures (featheredge/prime/block sand, blending, buffing and glazing, etc.) and a stronger sense of how to apply OEM procedures in the database system. “Estimate writing is one of the most difficult processes in today’s auto body industry,” 20 October 2013 opines Montanez. “Unfortunately, most of the people who write estimates have no clue of vehicle construction, absorption, management of collision energy and even substrate construction. That’s both on the repair side and the insurance company side.” Another longtime WMABA presenter, Tim Ronak of AkzoNobel Performance Coatings, will be at SEMA to oversee two special presentations and co-present a third. The first, “The Future of Cars: Self Driving Cars - Fact or Fiction?” will be held on November 5 and explore how technologies ranging from passive accident avoidance to complete autonomous vehicle operation could soon transform the collision industry in major ways. Ronak’s second presentation, “Competing in a Consolidated Marketplace,” is set for November 6 and will focus on current consolidation activity within the collision industry. Participants will leave with an understanding of what’s going on with consolidation – and intriguing insight into how to survive it. “People are looking at, ‘How do I get out because I can’t compete?’ and yet the marketplace is littered with examples of where people have not only survived consolidation in their markets, but have thrived in them,” offers Ronak. “You just need to look at some of the drugstore chains and local coffeehouses. Starbucks came along and dominated the coffee market, and yet we still have startups and little boutique coffee houses doing very, very well.” Ronak’s presentation schedule concludes with “Collision Center Parts Management,” a November 7 seminar (co-presented by AkzoNobel’s Scott Wheeler) that will offer a detailed review of perhaps the greatest expense your repair business encounters – parts. This course will focus on how to minimize cycle time-related delays due to incomplete or poorly processed parts orders that cause harm to a shop’s workflow. Longtime industry advocate, past Hammer & Dolly contributor and noted attorney Erica Eversman (Vehicle Information Services) returns to SEMA on November 7 to preside over “Succession Planning: Is Your Shop Ready for the Next Generation?” This afternoon presentation will offer insight into the often-uneasy topic of estate planning. What happens when a business owner unexpectedly passes away? What kind of questions should you ask your corporate or estate planning attorney to ensure that your business is prepared for a transition? How can you best communicate these issues with employees and/or loved ones? All will be answered in Eversman's special presentation, designed exclusively for the SEMA Show based on her years of experience dealing with estate planning and probate matters. “You have to honestly evaluate your business,” she says. “If you have family involved, you have to evaluate their relationships with employees – and each other. These are things that aren’t always pleasant to do…The people you say you love are already going through so much grief, aggravation and difficulty at that point just trying to cope with the fact that you’re not there anymore that the last thing they need is to have a huge mess dumped on them.” Eversman recommends that attendees have a good think about their businesses – and themselves – prior to walking into her presentation. “Write down what your business currently is,” she advises. “Are you a $1 million-a-year shop with five employees, or are you a $250,000-a-year shop with one employee? Get a sense of how many people work with you, put down your business parameters and identify if you have family involved. That’s the kind of stuff that will become critical in the conversation.” Executive Director’s Thoughts The level of excitement during the SEMA show feels like a static charge. The buzz of that many people in one place, and the expectation to find something new, is nearly palpable. It’s really an atmosphere that breeds change. There are opportunities at every turn for repairers to improve themselves and their businesses. Between the SEMA Show floor and SCRS’ Repairer Driven Education, it’s easy for the return on investment to be found by any repairer from any type and size of shop. Many WMABA members attend events each year, and I have yet to meet one who has felt they wasted their time here. If you feel stuck in a rut or like the grind is getting you down, then take the time and initiative to make a difference in yourself. Expand your thinking by attending the courses offered and finding out what kinds of opportunities for positive change truly exist there. The Vegas Advantage With the lead up to SEMA 2013 already producing a level of energy and excitement that surpasses the anticipation felt with past events, many collision repairers in the WMABA region are gearing up to make the trip to Las Vegas for an experience they simply can’t get anywhere else. “There is no better tool in our toolbox than being informed,” Schulenburg offers. “From my travels around the country, one of the biggest challenges I see with most shops is they simply don’t inform themselves enough about the issues. The Washington Metropolitan market does a great job of seeking out information because they have such a great resource with WMABA. But at a local level, you can’t replace the energy and opportunity that exist when you put 130,000 people in a convention center with every possible opportunity at their fingertips.” Not surprisingly, Ronak joins Schulenburg in urging his friends in WMABA to see for themselves what this special event in Vegas has to offer. “In order to survive, shops need to educate themselves,” he says. “The only way they’re going to know which path to pick is to be able to educate themselves on the available options. In order to find that out, they have to come to SEMA.” A complete schedule of RDE classes (and registration information) is available at www.semashow.com/scrs. More information on the Society of Collision Repair Specialists (SCRS) is available at www.scrs.com. H&D October 2013 21 ©istockphoto.com/iconeer TECHNICAL FEATURE INSIDE OEM COLLISION REPAIR PROGRAMS 22 Fifteen years ago, there was only one mass-produced aluminum-intensive vehicle: The 1997 Audi A8. (The vehicle arrived in the US for the first time in October 1996, although the vehicle debuted in 1994). There were no hybrid electric vehicles (except for the Panzo Q9 Hybrid race car), and Mercedes-Benz and Toyota were the only manufacturers with OEM-supported collision repair programs. Ultra-High Strength Steel was used only for bumper reinforcements, and boron was just an element on the periodic table. Well, welcome to the collision repair industry in 2013, where everything has drastically changed. The following original equipment manufacturers (OEMs) have sponsored Collision Repair Network Programs: Aston Martin BMW, Mini, Rolls Royce Chrysler, Dodge, Jeep, Fiat* Ferrari Ford, Lincoln GM (Buick, Cadillac, Chevrolet, GMC) Honda, Acura Jaguar, Land Rover* Mercedes-Benz, Sprinter, Smart Nissan, Infiniti Toyota, Lexus, Scion Volvo VW, Audi, Porsche, Bentley* (*Coming Soon) The above programs were created for a multitude of reasons, but the main motivator was to ensure quality, customer satisfaction and brand loyalty. As vehicles became more technologically advanced (not only with comfort features such as GPS, online access, heated/cooled seats and more, but also with advanced structural substrates and advanced smart airbag systems), OEMs listened to the concerns from their consumers about collision repairs and quality. If a new vehicle was involved in a collision and the owner went to the dealer that sold them the car to have it repaired, the dealer would then get the vehicle fixed at either their own shop or a shop with whom they had a relationship. Prior to the repair program, there were many cases where vehicles were repaired with aftermarket or used parts; in some cases, components were fixed that should have not been repaired. For example, we once had a case where a 2008 BMW E60 (535xi) was involved in a frontal collision. The repair facility pulled and repaired all the frontal damage, including damage to the aluminum front structural components. The vehicle literally broke in half at all the repaired areas due to work hardening from normal driving (approximately 1,000 miles after repairs were comOctober 2013 pleted). This case was a prime example of why training and education are needed and why OEMs had to step up and provide repair recommendations. Additionally, I-CAR was offering classes on the new advancements in vehicle construction and electronics 15 years ago – and shop owners, technicians and insurance personnel were clueless on how to repair these vehicles. Remember the whole scare over hybrid vehicles due to the unknown procedures? Over the past 10 years, more and more OEMs have established Collision Repair Network Programs. Although these programs were created to ensure the quality of repairs for customer satisfaction and brand loyalty, some OEMs were required to create programs due to the complexity of their vehicles. At the same time, these OEMs started to produce position statements and required repair procedures to explain why new original equipment replacement components, sectioning locations and repair procedures should be used to repair their vehicles. These papers were created due to the response to the poor quality of repairs the dealers were seeing (which resulted in voided warranties), issues with lease returns due to poor quality of repairs and/or aftermarket parts usage and the whole CarFax issue. As time has passed, the OEM Collision Repair Programs have become more and more technical, with some requiring very specific welding tests. The OEM Collision Repair Programs require some or all of the following: Specific structural repair equipment Specific MAG (steel) welders Specific MIG (aluminum and silicon bronze) welders Specific STRSW (Squeeze Type Resistance Spot) welders Specific glass, cutting, reshaping, riveting and OEM model tools Specific I-CAR training classes Specific I-CAR welding qualification tests Additional OEM specific welding certification tests (ISO tests) Specific OEM general and model-specific hands-on training classes Specific OEM online training courses ASE certification for each structural, non-structural and refinish technician and estimator To be on an OEM program, it is generally required that you have a good relationship with a dealer, as dealer sponsorship is required with most of them. This can be a very lucrative relationship for both the repair facility and the dealership. The dealer sends customers to the repair facility, and the repair facility purchases more OEM replacement parts as a result. Every one of these programs require new OEM replacement parts only. For the past few years, some shops have not purchased OEM replacement parts due to a variety of reasons (such as a DRP agreement, the insurance company saying no and the percentage of profit from aftermarket). Not using original parts has been the root cause of multiple issues with lease return vehicles and used car sales for the OEMs. This has also resulted in consumer dissatisfaction and is most likely the main reason why the OEMs developed these programs. To go on a program or not? That is an excellent question. The first thing a shop owner must do is evaluate his or her business by asking the following questions: Are my technicians older and near retirement (not willing to train)? What does my shop look like? Is it modern and clean with a comfortable waiting room? Is my equipment modern and up to date? Do my technicians have any training? Do I have the space or property to quarantine off a specific repair area? What is my financial situation? Can I afford the initial and further investment? Can I afford the rigorous ongoing training requirements and investment? Can I keep my trained and certified technicians employed at my facility? Can my facility pass an on-site audit and inspection by the OEM consulting company? What would my return on investment (ROI) be? Do I have any relationship with a dealership(s)? As you can see, there are a lot of questions you must ask yourself prior to making a commitment to try to get involved in an OEM repair BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE program. Please keep in mind that some OEMs require specific curtains to quarantine off the repair area, or even a completely separate building (usually for aluminum repair). Additionally, many OEMs have a two-tier program, one for steel vehicles and another for aluminum-intensive vehicles. Some of the programs offer training courses for free (with the facility owner only paying for travel and lodging expenses), while others require the facility owner to pay for the course and associated expenses. Here is something else you need to consider: Can you afford to have that trained technician be away from the shop for training? Training courses can go for days at a time; there are a few that are two weeks long. Another thing to consider is these training programs are offered in only certain locations throughout the United States. Plane travel and driving sometimes adds a day or two to the overall amount of time the technician will be absent from the facility. Additionally, there might be the expense of a car rental, parking fees or taxi service for the trip – and you have to feed the technician(s) while they are away at training. Some OEM programs have annual membership fees, training requirements and online OEM repair information access. Although some include those items, each program is different. What can you expect if you get involved in an OEM repair program? You should see an influx of new customers, (in some cases) higher Labor Rates, better CSI through assistance from the OEM training programs on customer service procedures and a more exclusive continued on pg. 38 October 2013 23 24 October 2013 October 2013 25 26 October 2013 October 2013 27 NATIONAL FEATURE THE END OF CHOICE? The Hard FAX on PartsTrader’s Latest Move It’s getting harder and harder to give PartsTrader a chance. Since first announcing its partnership with the parts procurement provider, State Farm has urged members of its national Select Service DRP network to keep an open mind when it comes to utilizing the program on the shop floor. Along the way, one of the insurer’s major selling points was that PartsTrader allowed shops to order parts from the vendors of their choice. Unfortunately, the smoke is moving away from the mirrors and a clearer – and considerably less encouraging – picture is beginning to appear. 28 October 2013 ©istockphoto.com/Lordivanhoe by Joel Gausten In an email to their Arizona-based Select Service facilities, PartsTrader Support announced that beginning August 1, suppliers that had not yet begun to use the PartsTrader application as "a fully active participating supplier" would no longer appear on the system as an available vendor, and therefore will no longer be able to receive orders placed through it. The outcry from the national collision repair industry was immediate. On August 12, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) – easily one of the most outspoken groups against the PartsTrader concept – offered their views on the change in a scathing (and heavily distributed) press release. "Are we surprised by this?" asked AASP/NJ President Jeff McDowell in the release. "Hell, no. We have been expecting these kinds of changes from the start. This program is all about control and money and taking both of those things away from the shop owner. What we are surprised about is how quiet the industry has gotten since this was first implemented. Back then, there was widespread outrage, but State Farm waited it out like we knew they would. Now, with what seems like little resistance from our industry, they are steamrolling through states and changing the rules in their favor as they go. It's only going to get worse." In his organization’s August online membership newsletter, Indiana Autobody Association (IABA) Executive Director Tony Passwater offered some of the most vitriolic words ever publicly spoken against the State Farm/PartsTrader union: It seems that as a result of the Chicago rollout not going as well as planned, State Farm and PartsTrader [have] upped the ante, and made a complete reversal of the "promises to the industry" including that, "Repairers will continue to have the ability to decide which suppliers and part types they use”…I guess it has become apparent that State Farm and Parts Trader are just common liars, and what they have stated will change if their results aren't as expected. It has also become clear State Farm is abusing their power over the industry to take further control driven by increasing their profits and show no respect to our industry or their policyholders. It is no real surprise that Passwater is so vehemently against PartsTrader’s latest move: According to an August 19 update on the official PartsTrader website, Indiana will join Michigan, Wisconsin, Illinois, Ohio, Kentucky and Tennessee in being the next wave of states to full under PartsTrader’s control. If this plan goes through, the total number of states using the program will likely be 14 by the time you read this article. Taking on the Bully On August 28, the Mississippi Collision Repair Association (MSCRA) and dozens of collision repair facility operators, OEM dealers and other parts suppliers filed a lawsuit in the Hinds County, MS Chancery Court against State Farm Mutual Automobile Insurance Company and PartsTrader LLC requesting the following: A declaratory judgment or other appropriate decree that the defendants are operating against the 1963 Consent Decree, and that their Select Service agreements are “void and unenforceable” as a result. A preliminary injunction against the defendants, prohibiting them from proceeding “with the forced implementation of the PartsTrader program.” A declaratory judgment or other appropriate decree that State Farm “can no longer interfere in the contract between the customer and the body shops by causing or implying delay in service payments, appraisal or limitation on the usage of rental automobiles.” John Mosely, president of MSCRA and a plaintiff in the suit, fears that the continued application of PartsTrader will eventually lead to the greater use of aftermarket parts throughout the industry. “We see [PartsTrader] as State Farm’s way to get back into the aftermarket parts business and not have their handprint on it…State Farm is telling us that we have to be a part of a program that is designed to get those parts put on our customers’ cars,” he says. “Any time the parts on a job are determined by the cheapest parts available, we call it ‘a race to the bottom of quality.’ It’s not fair to put us in that position with our consumers.” The MSCRA’s decision to jump into the legal pond with such a large shark came after months of critical research into PartsTrader’s effect on other markets. “What really fired us up and got our association back strong again was the threat of PartsTrader coming to Mississippi,” recalls Mosely. “We had our neighbors in Alabama come over and speak to us at our first reorganized association meeting. When they started telling us what [PartsTrader] was about and the consequences of not being willing to do PartsTrader, we knew we had to do something.” If successful, the Mississippi suit will show the world that the 1963 Consent Decree has merit in the modern world. In 1963, the United States Justice Department (under the direction of Attorney General Robert F. Kennedy) brought an action seeking to enjoin insurance companies from fixing, establishing, maintaining or otherwise controlling the prices to be paid for the repair of a damaged vehicle. The suit was resolved prior to trial through the signing of a Consent Decree by the major insurance trade associations at the time; combined, these groups represented approximately 265 insurance companies. The Consent Decree established that the insurance company defendants were not to place into effect any plan, program or practice which had the purpose or effect of: Sponsoring, endorsing or otherwise recommending any appraiser of damage to automobile vehicles; Directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with (a) any appraiser of damage to automotive vehicles with respect to the appraisal of such damage, or (b) any independent or dealer-franchised repair shop with respect to the repair of damage to automotive vehicles; Exercising any control over the activities of any appraiser of damage to automotive vehicles; Allocating or dividing customers, territories, markets or business among any appraisers of damage to automotive vehicles; and Fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage to automotive vehicles, or to be charged by independent or dealer-franchised automotive repair shops for the repair of damage to automotive vehicles or for replacement parts or labor in connection therewithin, whether by coercion, boycott, or intimidation or by use of flat rate or parts manuals or otherwise. October 2013 29 30 October 2013 Mosley is one of many repairers who feels that the 50-year-old document is deserving of a critical look in a modern context. “[The Decree] has been talked about in our industry a lot, but now we have folks who are bringing it back to the light and actually have people in government looking at it to see if this is not still as enforceable today as it was the day it was signed,” he says. John Eaves, Jr., the plaintiffs’ attorney, believes the suit makes it clear that a shop’s primary commitment should always be to the vehicle owner. “The body shops have a duty and a responsibility to the customer to provide a safe, proper repair,” he says. “State Farm, by the application of this program, is trying to force these body shops to breach their fiduciary duty to the customers.” Eaves warns that State Farm’s activities with PartsTrader could have a negative effect on non-Select Service shops as well. “State Farm controls twice as much volume as any other insurance company in the state of Mississippi,” he says. “Whether you’re on the DRP program or not, they are influencing the market. A lot of times, they go to non-Select Service shops and say, ‘Well, this is all we’re paying our Select Service shops. We’re not going to pay you anything more.’” On August 29, State Farm spokesperson Roszell Gadson issued the following statement regarding the case: “State Farm recently received notice of a lawsuit in Hinds County, MS related to our electronic parts ordering initiative and our Select Service program. We believe the suit is without merit. We intend to vigorously defend the suit.” Speaking with Hammer & Dolly shortly after filing the suit, Mosely made it clear that he is ready and willing to handle the long legal road ahead. “We don’t think that any court or judge will say that this is good for society, and we’re depending on the legal system to do the right thing,” he said. Life After PartsTrader In the 18 months that Hammer & Dolly has investigated and reported on the PartsTrader issue, we have encountered our fair share of shop owners who were reluctant to reject State Farm’s project out of fear that they will be dropped from their Select Service agreements. In late July, such a reality hit Sewell Lexus in Dallas, TX when they were dropped from Select Service after saying no to PartsTrader. According to Body Shop Director Jim Sowle, Sewell’s decision to not embrace PartsTrader came after State Farm failed to adequately answer many of their questions about the program’s strengths and weaknesses. “We kept asking, ‘Where is the efficiency gain for us? What is the ‘win’ for us - or the customer, for that matter?’” Sowle recalls. “That never really got answered; it was more of, ‘Why don’t you just try it?’” In Sowle’s mind, PartsTrader was little more than a solution looking for a problem. “In 11,000 purchase orders this year to date, we’ve had a one-day cycle time on filling [them],” he says. “I don’t have an OE supply chain problem. When I looked at integrating PartsTrader into that as a third party, it really added layers of additional administrative issues.” continued on pg. 43 October 2013 31 IF OFFERING ONLY ORIGINAL MINI PARTS IS A CRIME... THEN YEAH, WE’RE GUILTY. At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function. For Original MINI parts, contact any of these authorized MINI dealers. MINI of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 fax: 410-349-2586 MINI of Baltimore County 9804 Reisterstown Road Owings Mills, MD 21117 410-296-MINI (6464) Toll Free: 888-616-4333 MINI of Alexandria 5990 Duke Street Alexandria, VA 22304 703-461-6250 fax:703-751-0595 MINI OF Montgomery County 621 North Frederick Avenue, Gaithersburg, MD, 20879 866-263-2538 fax: 240-238-1493 www.myminiannapolis.com www.minibaltimore.com www.miniofalexandria.com www.miniofmontgomerycounty.com MINI of Sterling 21826 Pacific Blvd Sterling, VA 20166 888-954-8222 fax: 571-434-7727 Checkered Flag MINI 5225 Virginia Beach Blvd. Virginia Beach, VA 23462 757-687-3494 fax: 757-687-3495 www.miniofsterling.com www.checkeredflagmini.com Crown MINI 8710 West Broad Street Richmond, VA 23294 Toll Free: 800-237-0130 804-527-6860 fax:804-965-6254 www.crownmini.com 32 October 2013 October 2013 33 KNOWLEDGE = PROFIT: WMABA Opens the Encyclopedia of Estimating by Joel Gausten On August 22, the lives of dozens of WMABA shop owners changed forever. As a way to provide refreshing perspectives on longstanding industry issues, WMABA welcomed leg- endary industry speaker Mike Anderson for “The Encyclopedia of Estimating Practices,” a day-long seminar at the Springfield Hilton that offered attendees new ways to think about their businesses and their potential for success. One of the industry’s most recognized figures, Anderson first gained attention as the second-generation owner of Wagonwork Collision Centers in Alexandria, an extensive operation known as a trend- setter in the region. Along the way, he was heavily involved in the WMABA Board of Directors and local events like the annual SkillsUSA competition. In 2010, he sold his repair business and launched CollisionAdvice (www.collisionadvice.com), an industry consulting firm. Known throughout the industry as a top-notch speaker, Anderson currently spends more than 300 days on the road each year, helping shops and associations improve their chances of success. Presenting to shops in the WMABA region for the first time since 2007, Anderson offered nearly eight straight hours of high-energy facts, insights and opinions that kept attendees riveted throughout the day. Early in the presentation, he made it clear that his ©istockphoto.com/da-kuk Mike Anderson offered unique views on the industry during his August 22 seminar in Springfield. 34 October 2013 seminar was meant to help all shops – regardless of where they stood on the DRP issue. During his Wagonwork days, Anderson built a reputation for operating without any referral network business and charging customers the difference when a pay dispute with an insurer came up. But after seeing so much of the national industry in his travels, Anderson has developed a new perspective on the DRP issue. “Since I’ve sold my shops, my attitude has changed,” he revealed. “I’ve seen some non-DRP shops that do horrible repairs. I’ve seen DRP shops that do very good repairs. I’ve learned not to judge somebody by whether they’re DRP or non-DRP, and I don’t judge them on whether or not they use aftermarket parts. My bar that I judge people by now – right, wrong or indifferent – is, ‘Do you do quality work?’ If you can do quality work as a DRP, it’s not my place to judge you on how you provide to your family.” With that foundation established, Anderson moved on to present an intriguing “state of the industry” report that offered insight into how the collision repair field has changed in recent years. For example, there were 36,529 shops in the United States in 2005 and only 33,845 body shops in 2010. According to him, cash flow is the number one reason why shops are closing in 2013. “The bottom line is, they closed their doors because they overextended themselves and didn’t manage their cash,” offered Anderson, who added that some older owners are closing due to a reluctance to invest in new technologies. Anderson reported that 26 percent of all vehicles repaired in 2012 were customer-pay, up from around 15 percent in 2005. Anderson reasoned that this increase in customer-pay jobs was the result of drivers taking out insurance policies with higher deductibles. Additionally, Anderson noted that 63 percent of people who have a car seven years or older are only carrying liability insurance. Based on these factors, Anderson stressed that attendees need to find ways to understand, embrace and address these realities in their businesses. “You cannot just be an estimator anymore,” he said. “You have to be a good salesperson and be able to give the customer a very good experience. “Statistics have shown that the average person has an accident every 10 years,” he added. “When you fix a customer’s car, they will forget the [owner’s] name after six months and the name of the shop after a year. After 18 months, they forget where you’re located. We need to find a way to keep our name out there in front of them so when their neighbor or co-worker has an accident, they still know who we are.” In addition to advising attendees to avoid saying things like “lifetime warranty,” “certified technicians” and other phrases that everybody uses when trying to market their businesses, Anderson urged members to instead consider offering various levels of repair. “The shops I see that are thriving – not just surviving – understand the premise of good/better/best options,” he explained. “They understand that when people are paying out of pocket, they may not want ‘perfect.’ “I’m not suggesting we do unsafe repairs,” he added. “I’m just saying that in these economic times, we have to be able to asses that customer when [he or she] comes in with needs in the front end.” On a positive note for dealers, the number of locations with inhouse body shops has steadily rebounded since dipping between 2008 and 2010. However, this upswing might spell trouble down the road for independent shops that currently serve as dealer repair facilities. “If you are an independent body shop relying on a dealership to keep you busy, don’t get too comfortable on that because that could Mike Anderson performed a special ASTech test on John Krauss’ 2012 Infiniti outside the Springfield Hilton. October 2013 35 WMABA Executive Director Jordan Hendler urged attendees to encourage their fellow members to attend future WMABA events. change,” Anderson cautioned, adding that shops should always be equally prepared for a loss of DRP business if an insurer decides to move in a different direction. “The whole purpose of being a DRP is to build your clientele,” he offered. “Market to that customer base so if something ever does go south, you’ve marketed to those people and made them your customer.” Focusing on issues directly affecting WMABA shops, Anderson didn’t mince words when stressing that the Washington-Metropolitan market was in desperate need of a refresher on proper estimating. “Maryland, Virginia and DC are in the bottom five of the cheapest places to get your car fixed in the United States of America, but we have one of the highest costs of living,” he announced. “I have seen the enemy, and the enemy is us. We’re uneducated, and we need to get educated.” In Anderson’s mind, proper estimating begins with proper equipment – namely OEM scan tools. “It is next to impossible to write an accurate estimate and properly repair a vehicle if you do not have access to OEM information,” he said. Anderson spent a considerable portion of his presentation Attendees gained valuable tools they can now use in improving their businesses. 36 October 2013 discussing ASTech (http://collisiondiagnosticservices.com/astech), a revolutionary device that connects a technician over the Internet to an ASE-certified Master Certified Technician who scans the vehicle with an OEM scan tool. Within minutes, the shop technician is contacted with the results of the scan. The ASTech database currently covers approximately 70 percent of all vehicles from 2008 to date, and grows constantly. By the end of 2013, the database will have full coverage of all makes and models from 2008 to 2014. Key benefits of the ASTech service include faster cycle times, cost savings, reduction in supplements and access to authentic OEM scan tools without the expense. To demonstrate the accuracy and ease of use of the ASTech, Anderson took attendees outside in the hotel parking lot and ran a scan on WMABA Board member John Krauss’ 2012 Infiniti. A very short time later, the scan results came in and revealed that one of the vehicle’s right rear tire pressure sensors could not be detected. On the subject of dealing with insurers during the estimating process, Anderson encouraged attendees not to take the bait when an insurer flatly refuses to pay for a particular procedure. “Insurance companies train their people to tell you, ‘You’re the only one,’” he explained. “Why? It’s a negotiation tactic.” Anderson suggested that shops should keep the following four questions in mind when they encounter this kind of resistance from an insurer: 1. Is what I’m asking for required to put the vehicle back to pre-accident condition? 2. Is it included in any other labor operation? 3. Is there a pre-determined time? 4. What is it worth? “If they say ‘I don’t believe it’s required,’ it’s your job to prove to them that it’s required,” remarked the speaker, who recommended that so excited to go to work the next day. He is inspirational; he just made me want to kickstart my business again!” Even after 15 years as an estimator, Irvin Morgan of Walker Mill Auto Collision walked away from Anderson’s seminar with a new way of thinking about his profession. “I was blown away!” he says. “I implemented some of the things we talked about right away.” Morgan was especially impressed with Anderson’s discussion on 100-percent teardowns and “the number of things that get missed that we can improve on.” While those who made the time to attend Anderson’s class gained valuable tools and insights, it was difficult to ignore the elephant in the room: Why didn’t more members take advantage of this unique educational opportunity? This thought was clearly on WMABA Executive Director Jordan Hendler’s mind during her opening remarks at the start of the day. “I’m proud of you for coming,” she said. “A lot of people need to hear what [Mike] has to say. If you do nothing else when you leave ©istockphoto.com/dem10 repairers use resources like the Database Enhancement Gateway (DEG) and the SCRS Guide to Complete Repair Planning to help them develop a strong position in the negotiating process. Perhaps the highlight of the seminar came in the afternoon, when Anderson spoke at length regarding the benefits of adopting a 100-percent teardown process. He noted that the “best of the best” shops he’s encountered have a supplement ratio of less than four percent on drivables and less than 11 percent on non-drives after a 100-percent teardown. Conversely, he has seen other shops have supplement ratios of 50 percent or higher. In his mind, those days are over. “If you’re not tracking your supplement percentages, and you’re tolerating people who have 40- and 50-percent supplement ratios, you need to sit down and look at the 100-percent teardown process,” he said. Above all, Anderson advised the business owners in attendance to have patience when working to implement the practices covered in the seminar. According to his research, humans need to do something 30 days in a row before it becomes standard practice. And if your employees are out on the weekends, make that 76 to 80 days. “If you implement a new policy in your shop and your employees don’t do it, don’t get mad at them,” he said. “It takes a while for it to become habit.” Not surprisingly, Anderson’s one-of-a-kind seminar was a huge hit among attendees. “It was the most valuable nine hours that I’ve ever spent!” remarks Sisk Auto Body manager and new ASTech user Barbara Chase, who walked away with 11 pages of notes from the day’s various discussions. “After I went home, I couldn’t even sleep that night because I was Anderson noted that the “best of the best” shops he’s encountered have a supplement ratio of less than four percent on drivables and less than 11 percent on non-drives after a 100-percent teardown. here, tell at least one other person you work with some of the things you’ve learned today. Shame on them for not being here, but hopefully we can change the industry one person at a time.” For more information on Mike Anderson and CollisionAdvice, please visit www.collisionadvice.com. H&D Executive Director’s Thoughts Mike’s energetic and often combustible method of getting his points across makes him a huge hit with our industry. Often, the prospect of attending a seminar meeting can be thought of as a bore, but not his! If you do nothing else in the next year, find a way to attend a class with him. It changes the way you think about your repair business. October 2013 37 TECHNICAL FEATURE continued from pg. 23 image in your market area. These OEM repair programs are pretty exclusive, and that puts you in very good company because the OEMs are very selective on who they allow on their programs. You can Google the OEM Certified Repair Programs and count the amount of certified repair facilities in the US and see they are limited and in demographic-specific areas. Depending on the OEM program you get involved in, you can expect to spend anywhere from a few thousand dollars to upwards of $1 million. We hope this article has helped the industry to better understand what it takes to get involved in OEM repair programs. Feel free to contact us if you have any questions. H&D Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision repairability and estimating issues. P&L can be reached by contacting Larry at (718) 891–4018 (office), (917) 860–3588 (cell), (718) 646–2733 (fax) or via email at info@PnLEstimology.com. The P&L website is www.PnLEstimology.com. Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY (www.LangeTech. net). Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net. Executive Director’s Thoughts Many repairers have gone down the road of OEM certification programs. Some say that they have had huge success and utilized it as a marketing tool to new and existing customers, as well as a way to differentiate themselves. But there are others who have claimed that they were better off before. Personally, I don’t know how anyone who advances their business with research and forethought could have complete failure. 38 October 2013 SMALL PARTS... 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Bethesda Direct Parts: (301) 986-4602/03/04 Fax (301) 652-1694 7020 Arlington Road, Bethesda, Md 20814 mbparts@euromotorcars.com Germantown Direct Parts: (301) 515-5490 Fax (301) 515-9076 19750 Germantown Road, Germantown, Md 20874 mbparts1@euromotorcarsgermantown.com October 2013 39 40 October 2013 October 2013 41 HEADLINERS The Latest News & Notes Sisk Auto Body Named “Best Body Shop” by Calvert’s Best Sisk Auto Body manager Barbara Chase WMABA members Sisk Auto Body (Owings, MD) are pleased to announce that they have been named “Best Body Shop” in the latest edition of Calvert’s Best Business Book. An annual publication that asks for Calvert County residents’ "Best of" picks in more than 100 business categories, Calvert’s Best Business Book notified Sisk Auto Body of their award after the business received the most write-in votes from members of the community. “I’m extremely proud and honored,” says Shop Manager Barbara Chase. “I’m humbled that people would actually think of us. It feels incredible!” Launched in 1981, Sisk Auto Body is a second-generation family business currently managed by Chase and her sister, Muffy Revell. The shop works to maintain a positive presence in the area by sponsoring a variety of events and activities by organizations including the United Way of Calvert County and End Hunger in Calvert County. Additionally, the shop has developed successful online marketing tools including a Facebook page that has attracted attention thanks to regular contests and quizzes that award the winners with free goodies. For example, the shop recently asked its Facebook followers, “If you’re ever rear-ended, why should you take a picture of the rear of the car that rear-ended you?” The question not only resulted in a free wash for the user with the right answer, but also attracted a slew of new followers. “It definitely gets people talking about the shop,” says Chase. “Sometimes, we’ll do beforeand-after pictures or post information on what you should do after an accident happens, or weather reports urging people to drive carefully if it’s foggy. Each time we do something like that, we get more and more ‘likes,’ which is awesome.” More information on Sisk Auto Body is available at www.facebook.com/siskautobody or www.siskautobody.com. H&D 42 October 2013 NATIONAL FEATURE continued from pg. 31 At the time of Sewell’s dismissal from Select Service, work from the insurer amounted to around 22 percent of the operation’s entire repair business. Sowle says it may take up to 90 days for him to determine the kind of effect the absence of Select Service will have on his business moving forward. “We had a substantial amount of volume in the program, and there was basically 30 days or so of that [coming] through,” he says. “Everything that we had in the shop on Select Service continued on Select Service. Anything new after two days from [receipt of the notice] would come in as a ‘field’ [job]… What percentage of my business is going to be State Farm remains to be seen, but I don’t think that business just goes away.” Although Sowle says that “it’s unfortunate that a mandate was put on us and we were terminated because we didn’t comply with it,” the situation does at least come with a silver lining – and a potential lesson for anyone afraid to consider life without Select Service: Despite his disappointment over the departure of the DRP, Sowle is far from bitter. If anything, he’s too busy serving his customers to feel too bad for too long. “I’ve never relied on a DRP to send me work,” he says. “It just made the process easier so I’d have a better chance of making the customer happy.” Perhaps the truest answer to the PartsTrader dilemma lies in that statement. H&D Executive Director’s Thoughts The PartsTrader element is becoming like the fiction of a comic book, and it’s going to take a super hero like Mosely (or hopefully WMABA) to stop the forces of evil. Yes, evil. While I admit that State Farm is a business and is out to make a profit, so are the shops our association serves. And we would do well to never forget or be ashamed of that fact. October 2013 43 44 October 2013 October 2013 45 WHAT’S FIND MORE ASSOCIATION UPDATES @ www.wmaba.com UP TO? Looking the Part Here at WMABA, we are always trying to do our part to not only promote the professionalism of the collision repair industry, but also help support the fresh faces just entering our field. The Collision Repair Education Foundation and the Society of Collision Repair Specialists (SCRS) have the same commitment to the future of the industry, and have recently announced a great initiative that will help connect current industry members to local collision repair programs while also helping inspire collision repair students as they prepare to join the workforce following graduation. The announcement from the Collision Repair Education Foundation to the right outlines the details of the program, which we at WMABA wholeheartedly support. If you are interested in reaching out to your area secondary or post-secondary school to sponsor professional uniforms for their collision repair program, I urge you to contact Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or (847) 4635244. The deadline to take advantage of this endeavor is January 1, 2014, so get involved today! H&D The Collision Repair Education Foundation is inviting collision industry businesses to help provide their local secondary and post-secondary collision students with a professional appearance by sponsoring Cintas technician shirt-and-pant work uniforms for this upcoming fall school year. The Education Foundation is looking to connect industry members across the country with their local collision school programs. The more engaged these members are with the school, the better prepared the collision students will be to enter the industry after graduation. Kadel’s Auto Body, a 17-shop operator in Oregon, recently sponsored the purchase of uniforms for Portland Community College (PCC) collision students and PCC Collision. Instructor George Warneke noted, “I want to give a huge thanks to Kadel's Auto Body for the generous sponsorship of uniforms for my students through the Collision Repair Education Foundation. The timing of this donation was perfect! This term has just ended, and these students are preparing to start their last term of their two-year certificate in Auto Collision Repair. They are now arranging their last term, which is an individual cooperative work experience with an auto collision repair shop, where they will work for 300 hours to complete their training. The uniforms help them to feel and look professional as they go out into the workforce. It also has helped them have confidence by looking the part when interviewing for the cooperative work experience, and they feel like part of the team in a shop on the first day.” “Over the years, we have found that many industry members aren’t aware of their local collision school programs,” added Brandon Eckenrode, director of development for the Collision Repair Education Foundation. “In order to fulfill the industry’s dire need of capable and efficient entry-level workers, we all need to start taking an active role with these collision programs.” The work uniforms can be sponsored for $50 per student, which includes a pair of Cintas work pants and a technician shirt. Those companies that sponsor at least 100 uniforms will have their corporate logo screen printed on the back of the shirts. Industry members who are interested in learning more about this sponsorship opportunity, seek help in identifying their local collision school programs or have any other questions should contact Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or (847) 463-5244. Founded in 1991, the Collision Repair Education Foundation is a not-for-profit organization dedicated to securing donations that support philanthropic and collision repair education activities that promote and enhance career opportunities in the industry. For information on how to donate to programs supported by the Education Foundation, visit us at www.CollisionEducationFoundation.org. 46 October 2013 October 2013 47 48 October 2013 (804) 789-9649 jordanhendler@wmaba.com EXECUTIVE DIRECTOR’S MESSAGE FIND MORE ASSOCIATION UPDATES @ www.wmaba.com I’d Do It My (Mike’s) Way Mike Anderson is exciting. And the doctor says this excitement is highly contagious. It doesn’t matter whether you consider Mike’s presentation passionate, moving, electrifying or emotional. Any way you slice it, Mike is “excited” about teaching others and helping them to succeed. And he’s really great at it. If you knew him from the days he owned Wagonwork Collision, you probably saw him as a peer. Now, you see him as much more than that. No matter how great of a shop owner he was, he’s an even better teacher. Spending a day with him is fun. He jokes a lot (mostly about himself) and sometimes screams out, “I love this stuff!” I mean, he literally screams it out usually when the audience is distracted. When he does this, the audience members (myself included) jump out of their seats. He makes the topics he discusses – usually very serious – lighter and more enlightening. In my opinion, it makes it easier to digest and retain the information, as well as envision practical applications. It’s very empowering. It isn’t always easy subject matter. As a former shop owner of a completely non-DRP business structure, he talked about his mental transition through his consulting experience into more of a “fix-it-right” Mike Anderson is encouraging the industry to embrace new ways of addressing old problems. mentality. Whether shops are independent or DRP-dependent didn’t matter to him as much as quality of repair. And on that point, I couldn’t agree with him more. In my years with WMABA, I’ve come to that realization through working with many different types of shops. I also don’t care what your business model is – just that it includes doing a safe repair for the consumer. Later in the meeting, he went into supplement ratios and complete teardowns and how they can affect the cycle time and profit of your business. Joel covered these topics earlier in the cover story, so I think you’ve got that part down. What I want you to get from Mike’s seminar are ways of improving customer relations. Sixty-eight percent of people prefer text updates to phone or email. Do you think it would be wise to look into that? He also cited a survey that says consumers put trust, empathy and direction above price, which was down in sixth place! Do you think that setting clear expectations on the front end of the repair process to establish trust — and taking the time to listen to the customer about how the accident took place — would gain empathy? Wouldn’t that make you first in their book, even over the insurance company? Another way to improve customer relations and establish a long-lasting relationship is through communication. Sounds a lot like a family, right? If Mike’s right, your customer could forget about you completely in 18 months, so you need to get in front of them on a regular basis. Do you have a Facebook page with regular updates? Do you ask them to give you an email address to send them a newsletter? Have you checked your website ranking on Google? Do you not know how to do any of this stuff and need to go out there and get some help? These are all things you’ve heard before, but maybe never took initiative on. Mike challenged you – even if you weren’t there – to think like a business owner. Think logically and not emotionally. Insurers may not come around immediately if you explain your charges in a methodical and documented way, but you can continue to have the discussion with them until they do. If you put 10 percent of your time into building a business, it will pay you back tenfold with happier customers who have positive things to say about their experience and will tell their friends and families about you. That’s always better than relying on someone else to send you a customer you didn’t get on your own. If I could copycat anyone’s thoughts, I’d do it Mike’s way. H&D October 2013 49 ©istockphoto.com/fleaz Jordan Hendler ADVERTISERS’ INDEX Alexander & Cleaver ....................16 Alexandria Toyota ........................42 All Foreign Used Auto ..................43 American Honda Motor Co., Inc. 4 Audi Group ..................................25 Axalta Coating Systems ..............5 BMW Group..................................26-27 BMW of Bel Air ............................IBC BMW of Fairfax ............................3 BMW of Rockville ........................IBC BMW of Towson ..........................IBC CAPA ............................................6 Crashmax ....................................21 Empire Auto Parts ........................43 Euro Motorcars ............................39 Euro Motorcars Rolls-Royce ........42 Honda Group ................................41 Hyundai Group ............................48 Jerry’s Chevrolet ..........................14 Koons Ford ..................................44 Mazda Group................................47 MINI Group ..................................32 MINI of Alexandria ........................39 MINI of Montgomery ....................39 Mitsubishi Group ..........................15 Mopar Group ..................................10 Nissan Group................................40 NORTHEAST™ 2014....................17 O’Donnell Honda ..........................38 Porsche Group ............................30 PPG............................................. IFC P&L Consultants ..........................23 Russel Toyota ..............................44 Safety Regulations ......................50 Safford Fiat of Tysons ..................50 SEMA Show 2013 ........................19 Springfield Toyota ........................38 Subaru Group ..............................24 Tire Distributors Inc. ....................12 Tire World ....................................31 Toyota Group ................................33 Valspar Automotive ......................OBC VW Group ....................................9 50 October 2013 October 2013 51