bsb july 2013

Spraybooth Technology » Hiring a Consultant » Web Ranking Tips

July 2013//Vol. 32 No. 7 www.bodyshopbusiness.com

More shops are considering OE certification as a way todifferentiatethemselves.

on

ertificationertificationon

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InsideJulyJuly 2013 Vol. 32 No. 7

Member, BPA Worldwide

BODYSHOP BUSINESS (ISSN 0730-7241) (July 2013, Volume 32, Number 7):Published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Copyright 2013 Babcox Media,Inc. All Rights Reserved. Periodical postage paid at Akron, OH 44333 and additionalmailing offices. POSTMASTER: Send address changes to BODYSHOP BUSINESS,P.O. Box 13260, Akron, OH 44334-3912.

Guess the Car ....................................................................................4Industry Update ..............................................................................12Tech Tips ........................................................................................26NASCAR Performance ......................................................................30Product Showcase............................................................................84The Shop ........................................................................................88

Eye on CertificationMore and more collision repair facilities are considering OEcertification as a way to stand out from the competition.

32

50FEATURESTECHNICAL

Spraybooth Q & AEver wonder about some of the technology on spraybooths?Wonder no more, because we have the answers.

60 BUSINESS

Hiring a ConsultantAre you at your wit’s end with your business? Sometimes afresh pair of eyes is just what you need.

8101420

SHOP TALK

Editor’s NotesJason Stahl goes back to school.

Publisher’s PerspectiveBe heard on the issues affecting you.

Clark’s CornerSprucing up your shop can pay great dividends.

Web Presence ManagementHas a penguin hurt your Google search ranking?

DEPARTMENTS

ON THE COVER

Paint—it’s what youdo.It’s all we do.

See our ad on page 63

4 July 2013 | BodyShop BusinessCircle 4 for Reader Service

What vehicle MODEL does this picture

represent? Fax your guess to

(330) 670-0874. Include name, title,

shop name, city, state and phone

number. Or submit your guess with our

online contest form by visiting

bodyshopbusiness.com/guessthecar.

The winner will be randomly selected

from correct entries and awarded $50.

Entries must be received by July 31,

2013.

*Only one winner will be selected. Chancesof winning are dependent upon the numberof correct entries received. Employees ofBabcox, industry manufacturers and BSBadvertisers are not eligible to enter.

See the August

issue for winner

of Guess the Car

#123.

Rhonda Fiore, office manager, Fordyce

Auto Center, Louisville, Colo.

Roo-tan = (Volkswagen) Routan

#124

#123

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#122

WINNER!

SOLVED!

I want to catch some rays.

Guessthe CarReader Contest! Win $50!

“Let’s get physical!”

FACTS ABOUT THE NOMINEE:Name and title of nominee: __________________________________________________________________________Company name: ________________________________________________________________________________________________________Nominee’s daytime phone: ( ) ______________________________________________________________________Nominee’s company address: ________________________________________________________________________City: ____________________ State: ___________ Zip: ____________________________________________________Nominee’s date of birth: ___________Total number of years in the collision repair industry: ________________Education (list schools attended, degrees earned): __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

NOMINEE’S COLLISION REPAIR INDUSTRY BUSINESS HISTORY:List shop(s) worked for and/or owned, dates and positions held. Review growth and development ofbusiness(s) this person has been in charge of: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

NOMINEE’S SIGNIFICANT COLLISION REPAIR INDUSTRY CONTRIBUTIONS:List any significant milestones, accomplishments, rewards, recognition, special achievements, etc. Review whatmakes this person different from the average shop owner: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

INDUSTRY SERVICE RECORD/VOLUNTEERISM:List all industry association involvement, leadership positions and committee activities nominee has been involved in, including date, position held, special achievements attained, special honors/recognition and offices held: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

NOMINATOR INFORMATION:Name and title of nominator: ____________________________________________________________________________________

Nominator’s place of business: __________________________________________________________________________________

Nominator’s signature: ________________________________________________________________________________________

Nominator’s daytime telephone: ( ) ____________________________________________________________________________

NOMINATION FORM MUST BE RECEIVED BY AUG. 30, 2013.Mail to: BodyShop Business, Executive of the Year, 3550 Embassy Parkway, Akron, Ohio 44333;

fax completed form to (330) 670-0874; or access the form online at www.bodyshopbusiness.com.

BodyShop Business Collision Repair Shop Executive of the Year Nomination Form

Mark has been doingthis for a long time, andhe has written morearticles for BodyShopBusiness than anyone.The man knows hisstuff when it comes tocollision and paint.

I had never sat in onone of his classes, andwhat I was most impressed with washis ability to speak from a real-worldperspective of owning a PBE store.

When appropriate, heexplained to the class

how he handledcertain situations,but by no meanswas he saying itwas the onlyway. In fact, I

quickly real-ized that

one of the most valuablethings the class had tooffer was each personoffering their ownperspective of running aPBE store in their ownmarket. While some ofthem could say, “Well,that would never work inmy market” or “My cus-

tomer demographic is different,” itwas nonetheless interesting to hearabout each store’s delivery andaccounts receivable policies and howtechnology has helped them.

The folks in this class representedthe créme de la créme in the jobberworld, and so it was neat to see theiraggregated sales revenue and otherdata for comparison sake. But num-bers aside, the class also dealt withinventory, employees, humanresources, marketing and more.Mark led off each part by sayingwhat he used to do in his store, ask-ing the students what they do, and

then coming up with action stepsto implement once they got

home in order to improve.I learned a whole lot, and

for that I say: “Thanks, Markand PPG!”

Editor’sNotes Publisher

S. Scott Shriber, ext. 229 [email protected]

EditorJason Stahl, ext. 226 [email protected]

Associate EditorGina Kuzmick, ext. 244 [email protected]

Contributing EditorsCharlie Barone, Mitch Becker,Mark Clark, Mark Claypool,Erica Eversman, Tom Ferry,Curt Harler, John D. LymanSr., Hank Nunn

Graphic DesignerLisa DiPaolo, ext. [email protected]

Advertising ServicesKelly McAleese, ext. [email protected]

Director of CirculationPat Robinson, ext. [email protected]

Director of eMedia & Audience DevelopmentBrad Mitchell, ext. [email protected]

Subscription ServicesEllen Mays, ext. [email protected]

Tel: (330) 670-1234Fax: (330) 670-0874Website: bodyshopbusiness.com

Corporate

Bill Babcox, PresidentGregory Cira, Vice President,

Chief Financial OfficerJeff Stankard, Vice PresidentBeth Scheetz, Controller

A limited number of complimentary subscrip-tions are available to those who qualify. Call(330) 670-1234, ext. 288, or fax us at (330) 670-5335. Paid subscriptions are available for non-qualified subscribers at: U.S.: $69 for one year.Canada/Mexico: $89 for one year. Canadian ratesinclude GST. Ohio residents add current countysales tax. Other foreign rates/via air mail: $129for one year. Payable in advance in U.S. funds.Mail payment to BodyShop Business, P.O. Box75692, Cleveland, OH 44101-4755. VISA, MasterCard or American Express accepted.

April 23 seems like a distant memory to me now. Rain and cold hasgratefully given way to the steamy hot kettle cooker of summer. Still,I was excited to go to Naperville, Ill., and watch one of the best train-ers in the collision repair industry, Mark Clark, hold court in front of

20 or so jobber store managers as part of the PPG Platinum Distributor Accel-erated Distributor Development Series.

Back to School

Jason Stahl, Editor

Email comments to [email protected]

Issues, Issues,Issues

At the April CIC meeting, the importantissue of OE repair standards and whichones would be used and accepted by the in-dustry was discussed. This is a very stickysituation with many different points of con-tention. One of the major ones is what to dowhen there are not standards for a particu-

lar repair. Responses to this ques-tion varied back and forth, and

it’s still not decided.You all know that I have a

30-year OE background, soyou can pretty much guesswhere I stand on this issue.For everyone involved – you,the insurer and the vehicleowner – we need a specific set

of repair standards. These needto either be created by

those who built thevehicle, or there

needs to be anagreed uponprocedure onwhat to dowhen thereis not awritten repairprocess.

Therecan be nomiddle

ground on this issue. You, the repairer, aredead in the liability seat if not. Agreementon standards will be good for the indus-try. They will reduce shoddy repairs,make vehicles more safe, reduce overallcosts and get you out of the liability seat ifyou follow them.

The second thing that came up was theissue of consistent reimbursement for materials used. There seems to be a widevariation in what shops are paid for jobmaterials and supplies. There doesn’tseem to be any rhyme or reason for what’spaid. This, too, needs to have an agreedupon standard.

So where does this leave all of us? In thedriver’s seat! Let me finish before you thinkI’ve gone mad.

There are roughly 45,000 collision repair facilities in the U.S. Alone, the voice is smallfor each one, but together, you’re very loud.You need to get involved in these issues, beheard and be part of the solution. Go to CICand industry events and make your thoughtsand wishes known. Use your associationslike ASA, SCRS and others to be heard. Theseare your associations, and they’re there to getthings done industry-wide for you. Your firststep is to be part of solving the issue. Today isthe day to get started.

Publisher’sPerspective

S. Scott Shriber, Publisher

Email comments to [email protected]

Ihope all of you are having a good year. As I write this column, we’re at the halfwaymark. Where is 2013 going?

In the last few months, I’ve had the opportunity to be with many of you at industryand association events. It’s always great to meet with you and hear what’s going on in

our industry. Suffice it to say, we here in the collision industry are never short on issues.

The Quest Special-ty Chemicals fam-ily (QSC) hasannounced its

completion of the acquisi-tion of U.S. Chemical &Plastics (USC).

U.S. Chemical, based inMassillon, Ohio, is aleader in automotive re-finishing products, in-cluding a full line ofpaints and coatings, plas-tic fillers, putties and oth-er accessories used in thecollision repair industry.QSC is positioning theU.S. Chemical productline within its wholly-owned Quest AutomotiveProducts division, joiningMatrix System Automo-tive Finishes. Matrix Sys-tem offers a complement-

ary line of intermixbasecoats and is knownfor exceptional color-matching capabilities andhigh performanceclearcoat products.

U.S. Chemical bringsseveral well-known prod-

ucts to the Quest family,including the USC-brand-ed products Pro-Sprayand SprayMax.

“This acquisition meansa great deal to our endusers, automotive colli-sion centers and bodyshops,” said DougMattscheck, CEO of QSC.

“It positions Quest Auto-motive Products as a com-plete source for criticalsupplies, from substrateto clearcoat. The additionof the U.S. Chemical prod-uct family solidifies ourposition as a world leader

in innovative automotiverefinishing.”

Added David Brunori,president of Quest Auto-motive Products, “We areexcited at the opportuni-ties the U.S. Chemicalproduct family brings toour business. The Matrixproduct line has always

been a leader in offeringquality finishes, exception-al customer service andunparalleled color match-ing. The U.S. Chemicalproducts continue that tra-dition and create a productrange that makes QuestAutomotive Products areal value to customers,from small shops to largecollision centers.

“Our customers willnot experience disrup-tion in services or prod-uct delivery as we beginour integration of USCand Matrix System. Ourfocus as we integratethese organizations willbe to give our customersa larger range of prod-ucts to choose from andoffer one-stop shopping.Equally critical is find-ing new relationshipswith customers who seethe value that the QuestAutomotive family ofproducts brings to theirshop. From waterborneto solvent intermix sys-tems, from fillers and

IndustryUpdate

12 July 2013 | BodyShop Business Circle 120 for Reader Service »

Quest Specialty ChemicalsAcquires U.S. Chemical & Plastics

Maryland Collision Repairer Wins

Short-Pay Lawsuit Against GEICO

AMaryland body shop owner has won a short-pay lawsuit he filed against GEICO on behalf ofa customer.

Mark Schaech, co-owner of Mark’s Body Shop ofBaltimore, filed the suit against GEICO due to the in-surer’s refusal to pay $392.95 in repair costs on be-half of its policyholder. The underpaymentsincluded: degreasing vehicle prior to repair; feather,prime and block repaired panels; clean vehicle fordelivery; clear OBD fault codes; reset electronics(recorded settings); mask for primer; and overhauldoor handle for refinishing.

“We offer exceptional quality and service to ourcustomers, and to continue to do so without being

properly compensated is simply unreasonable and un-sustainable,” said Schaech. “While my father (partner)and I would rather avoid having to take such legal ac-tions, something had to be done as the insurer’s ef-forts to underpay our customers continued toincrease. I felt like that guy in the movie Networkwhere he stuck his head out the window and yelled,‘I’m mad as hell and I’m not taking this anymore!’

“While Maryland does not allow the recovery of le-gal fees to the prevailing parties in such issues, wecouldn’t allow that to be a deterrent in our being ableto properly serve our customers and our employees.Insurers have continued cutting their costs while our

Continued on pg. 70

Continued on pg. 70

court’s award was not con-tingent upon same.

“The extensive fees wereincurred due to the sub-stantial time our attorneyinvested to research andcombat State Farm’s initialefforts to defend againstthe short-pay lawsuits andtheir efforts to discourageand stop me,” said Gun-der. “We didn’t do it alone;besides having a great le-gal counsel, we had the on-

Ajudge has ruled in afee dispute that StateFarm has to pay

Gunder’s Auto Center’s le-gal fees of $76,157 relativeto one of two initial law-suits owner Ray Gunderlevied against the nation’slargest auto insurer forshort pays on behalf of twoof his customers.

Gunder and his attorney,Brent Geohagan, havereached a tentative out-of-

Michael Bradshaw, vice president of operationsfor K&M Collision in Hickory, N.C., wasawarded claimed short-pays in a court-or-

dered arbitration. The binding arbitration was the re-sult of Bradshaw filing a lawsuit on behalf of K&MCollision’s customer against Nationwide for the insur-er’s underpayments of what were determined to bereasonable and necessary repair costs. In North Car-olina, every lawsuit filed goes to binding arbitration,and only after same can either party then seek a trial ifso inclined.

The insurer’s short-pays included: labor rates ($48body and refinish, $80 mechanical and $65frame); procedures (i.e. sand and buff, finaldetail, road test, color tint and collision accesstime); invoiced paint and materials; subletmarkup; fixture usage; and a $250 damageanalysis fee, which included a compre-hensive part-by-part inspection of allcomponents including exteriorpanels, inner structure, me-chanical components, and SRSand seat belt systems. Theaward also included storagecharges at a rate of $50 per dayfor a total amount of $2,506.98plus accrued interest until theinsurer’s full payment is made.

“I’m glad the courts recog-nized who the repair experts

court agreement in the oth-er case for the insurer topay legal fees in theamount of $7,250 plus ac-crued interest, whichbrings the total amount tobe paid by State Farm to anestimated $83,400 in thesetwo cases. Efforts were ini-tially made by the insurerto condition a non-disclo-sure agreement in ex-change for payment, butGunder refused and the

were,” says Bradshaw. “From the beginning, I was veryconfident we would succeed through our legal systemin proving all our charges to be both reasonable andnecessary. For any insurer to expect all shops to operateby the same rates, procedures and charges regardless oftraining, manufacturer certifications, equipment and fa-cilities is ludicrous. The fact is we have made a commit-ment to repairing vehicles properly, adhering strictly toall manufacturer repair methods and guidelines, andwhat we’re consistently finding with some insurers isthey care very little about manufacturer certificationsand proper repairs and only about bottom-line cost and

the cheapest repairs possible. My fa-ther (the CEO) and I decided if wewere going to stay in business andcontinue to repair vehicles prop-erly, we could no longer acceptinsurer-dictated repair costs.We found that short-pay litiga-tion was necessary to stop in-

surer underpayments and provideour customers with the factory-certifiedrepairs their policy affords them.”

Bradshaw credited Erica Eversman,Ray Gunder, Barrett Smith and manyother industry experts as well as his le-gal team of Jason A. Orndoff andWilliam E. Morgan for his legal victory.

“I hope our actions and results en-

going financial and moralsupport of many repairersand friends across thecountry. We’ve hung inthere because we knew wewere right and we wantedto blaze a trail up thatmountain so other repair-ers wouldn’t have to makethe significant investmentwe did.

“The path is now clearand easy to navigate. Theheavy lifting is done, manyother repairers are now fol-lowing our lead and evenmore are looking into do-

»| Industry Update |«

www.bodyshopbusiness.com 13« Circle 121 for Reader Service

North Carolina Body Shop Wins Short-Pay Arbitration Against Nationwide

State Farm Ordered to Pay Gunder’s Legal Fees

Continued on pg. 70

Continued on pg. 70

Standing out from every other localbody shop is a difficult process.

When I travel, one of my hosts oftensays that I just “have to see” so-and-so’s shop because of how cool itis. Those visits lead to toursof some pretty thought-fully designed colli-sion repair facilities.Without exception,these shops look reallygood from the street,the parking lot andthe office.

Looks AreEverything » Manyyears ago, I was con-ducting an informalcustomer surveyabout choosing a bodyshop for a BodyShop Business story. At thesame time, a Louisiana college was doinga similar survey. Not surprisingly, both ofour results mimicked those that everyinsurance company has identified as akey part of Mrs. Smith’s repair facilitychoice: a squeaky clean presentation.Every survey ever done about collisionrepair indicates that the consumer isfavorably impressed by a clean facilityand a welcoming attitude. I’m at a loss toexplain why, if clean is so important, thatmany body shops aren’t.

Physical presentation is the requiredfirst step in a profitable close rate. If yourshop’s appearance from the street doesn’tlook at least as professional as your com-petitor’s shop, Mr. and Mrs. Smith willdrive right on by, even if their insurancecompany directed them there. Never for-

get that their vehicle is their second mostvaluable asset, and unless you look likeyou’ll take good care of their car, they’ll

try the super clean-looking guy theydrove by to get to the suggested

but unkempt DRP shop. Thesigns, the lawn, the park-ing lot and the windowglass all send a messageto anyone driving by.Mrs. Smith only has acollision every sevenyears, so she has lots oftime in between to driveby lots of local bodyshops. She’ll rememberthe shipshape ones.

Attitude Change »Other vital consumer

preferences that collision repair marketingstudies agree are important include aprompt reception, a welcoming attitudeand a sympathetic ear. And they meanevery time, every shopper, not just whennothing else is going on.

I watch it happen frequently, even at thesparkling clean shops I’m privileged to visit. The receptionist and estimator areupbeat and welcoming to the first Mrs.Smith in the door each day. As she headsoff for the shop’s attractive, well-lit wait-ing area for some hot or cold beverages,the phone rings, and rings again and againjust as the next few Smiths drive in forsome help. One by one, the prompt recog-nition (“I’ll be with you shortly, please en-joy a fresh coffee”) becomes ignoringeveryone except the rambling caller on thetelephone. The friendly attitudes andpleasant smiles turn into harried scowls as

14 July 2013 | BodyShop Business

Clark’sCorner By Mark Clark

Have You Gotthe Look?

each new customer seems to indi-cate more workload for the staff;clearly, they’re missing the pointthat more work is the objective. Finally, the salesperson’s sympa-thetic ear transforms from a pa-tient recipient of a vividdescription of every moment ofMrs. Smith’s once-every-seven-years collision to an “Uh huh, uhhuh, sit over there.”

Sign of the Times » So you sayyour shop meets all my listed cri-teria so far? Congrats! It takes a lotof work to maintain a shiny, cleanbuilding, parking lot and officeevery day. But how will I chooseamong your shop and all the otherclean and friendly good guys?

Signage sends an importantmessage (pun intended). Easy-to-read, colorful and professionalsigns go a long way toward solid-

ifying a desirable experience forthe Smiths. From the turn-in offthe street, signs should clearlypoint the way Mrs. Smith shouldproceed. Legible signs shouldlikewise direct where she shouldpark her car, which one is the cor-rect front door and where sheshould go now. While I see manytop shops with great signage out-side, I seldom see any with greatsignage inside.

While Mrs. Smith waits for herestimate, rather than have herthumb through old magazines orwatch a scary video of someone’sbadly wrecked car getting pulledout on your frame machine, tellher exactly why she should chooseyour shop on a big wall sign. On alarge, easy-to-read-from-across-the-room, professionally donesign, tell the Smiths why you’regreat. My ideal sign would feature

your colorful logo along with aone-sentence quote from the own-ership promising to do a superiorjob. The sign would also bulletpoint all the swell things aboutyour shop: technician training, lat-est equipment, insurance relation-ships, years in business, lifetimewarranty, etc.

Having seen this done severaltimes in very cool shops across thecountry, I’m convinced it’s a pow-erful closing tool. Mrs. Smith is al-ready in your waiting room; inaddition to a warm welcome, aclean place to sit and fresh bever-ages and snacks, take the opportu-nity while she’s captive to clearlylist in writing all the reasons sheshould choose you. She’ll read it – I promise.

In addition to the inside signstelling your story, you could reit-erate the same strengths on a

»| Clark’s Corner |«


handout sheet that you could sta-ple to the Smiths’ estimate – inthe unlikely event they forgotsome of your wonderful quali-ties. Far too many shops don’tclose well. They write a completesheet, smile when the Smiths ar-rive and thank them for thechance to bid the repair of theirvehicle. Top shops ask for thesale every time, in no uncertainterms. Like what? Like, “Mrs.Smith, we would like to repairyour car, and our trained techs,state-of-the-art equipment andstellar local reputation will makethe process seamless for you.May I schedule your car for re-pair?” Good closers ask for thework in plain English, everytime. The worst that can happenis she says no. If she says whynot, it’s your chance to overcomeher objections.

Closing the Deal » Among themany statistics in the IndustryProfile in the May 2013 issue ofBodyShop Business was close rate,also called capture ratio or battingaverage. It’s the percentage of esti-mates written that turn into repairorders. The formula is simple:number of ROs divided by num-ber of estimates for a set timeperiod. According to the shopsthat responded to the IndustryProfile survey, the average closerate is 62 percent. The survey alsoindicated that the average shopfixes 13 vehicles each week. A 62percent close rate means theywrote 21 estimates to get those 13jobs. That means that eightcustomers stood in the waitingroom, shook hands with the esti-mator each week and had their carfixed somewhere else. Eight lostjobs per week, 49 work weeks a

year and an average RO of $2,238per the survey means that$877,296 of work walked out ofthe average shop.

Could your shop use anotherthree-quarters of a million dollarsin work? Shops ask me all the timewhere I think they should adver-tise, but until their close rate is inthe 80 percent range, I say don’tadvertise for more work. Justclean up, smile, explain clearlyand close the work that’s alreadyfinding your shop. BSB

Mark R. Clark is theowner of ProfessionalPBE Systems in Wa-terloo, Iowa; he is awell-known industryspeaker and consult-ant. He is celebrating

his 25th year as a contributing editorto BodyShop Business.

»| Clark’s Corner |«


Web PresenceManagement

Is a Penguin Hurting Your Website’s Search Ranking?

Have you noticed anythingstrange with your website’sGoogle ranking lately? Has itdropped five or six positions or

more? Is it perhaps no longer on the firstpage as it has been for awhile? If so, youcan blame a penguin. That’s right – apenguin. Google’s Penguin 1 and 2, to be precise, the latest round of majorchanges to the search engine giant’s al-gorithms that determine how a site will rank.

What to Expect » Googledoesn’t reveal exactly what thechanges are, but they do hintwhat to expect. Keywords, ofcourse, are still as important asever. So are title tags and properuse of headers and alt imagetags. But these aren’t enoughanymore. Now, nationally recog-nized websites are starting todominate page one over localdomains. This has major implica-tions for you, and there aresome things you simply mustdo to fight back.

Competing for Page One » AtOptima Automotive, we startednoticing that our clients’ sites werelosing their traditionally strong rank-ings. Overnight, it seemed that huge,national domains like Google+, Yellow-book, Dex, Yahoo Local, Yelp, Angie’sList and others were starting todominate the top spots on page one. Ifyou’ve traditionally been strong on pageone, you may be shocked to find you’ve

been bumped a few spots, or evenbumped off page one.

Check it out for yourself – go towww.google.com, search the term “autobody” plus the name of your town andyour two-letter state abbreviation. Besure to look at your actual organic rank-ing, not the sponsored spots at the top orthe Google+ map listings. If your rank-ing isn’t as strong as before, you’ve like-ly been struck by the Penguin. Replacingyou in those top spots are probably thenationally recognized domains men-tioned above. The big are eating thesmall. Even large, consolidator site

By Mark Claypool


pages are starting to rank betterwhen they’re doing things right.Good news for them, not so goodfor independents.

What You Can Do » So whatcan be done about it? It has nowbecome almost impossible tobump those national domainsout of place. Unless Googlemakes a major algorithm shift inthe future, you’re going to haveto take different measures to bevisible on page one. Theseinclude:

� Claim your Google+ page.It’s a MUST. Verify your businessand location with Google, thenstart posting on your Google+page at least once every 72hours. Promote it to customers,ask them to +1 you and give youpositive reviews on Google.

Google loves it when you usetheir stuff! Read the article,“How to Make a Google+ PageFor Your Business,” in the November 2012 issue ofBodyShop Business.

� Participate in search enginemarketing, also known as pay-per-click advertising. This willensure you’ll be on page one. Itcosts some money to do it, butwhat is it costing you to not beon page one? Read the article,“Using SEO to Score Page Oneon Google,” in the February 2013issue of BodyShop Business.

� Claim your free businesslistings on consumer pages likeYellowbook, Dex, Yelp, City-Search, Manta, Yahoo Local, etc.Be in control of your listings,post photos and make sure allyour contact information is

exactly the same on each and every one.

� Consider becoming a spon-sor on some consumer sites. Itcan be expensive, but sponsoredlistings show up first, plain andsimple. It’s how the game isplayed. So think about your visi-bility, or lack thereof, when youweigh whether or not to becomea sponsor.

� Consider becoming a mem-ber of Angie’s List. Their strongwebsite is really starting to showup in search rankings.

� Become a member of theBetter Business Bureau (BBB).Make sure your shop’s informa-tion on the BBB webpage isshowing up correctly and consistently with all of your other listings.

� Rock your participation in

»|Web Presence |«


social media. Reach people thisway with your brand and theywill think of you first rather thansearching for shops via othermeans.

Will this help move your ownrankings higher? Not likely, cer-tainly not with how Google isstructured at the present time.Effective participation withGoogle+ can, however. Overall,taking control of your local con-sumer listings will ensure thatyour information is correct. Peo-ple will hopefully find you thatway. That’s not what you wantedto hear, most likely, but it is thereality of search in 2013.

Darn Penguins » Bet you neverthought you would have to go tobattle with a penguin, huh? They

seem like such harmlesscreatures. But in this case, thepenguin is taking a bite out ofyour business. So claim yourbusiness listings on consumersites, consider advertising inthem, claim your Google+ pageand start using it. Most impor-tantly, build relationships withvendors, 20 Groups, chambers ofcommerce and BBBs and getthem all to link to you – and youto them. These “backlinks” arethe best thing you can do onyour own and will help you keepthe little black and white crea-tures at bay. BSB

BSB Contributing Editor Mark Claypoolhas more than 30 years of experiencein the fields of workforce development,business/education partnerships,

a p p r e n t i c e s h i p sand Web presencemanagement. He isthe CEO of Optima Automotive (www.optimaautomotive.com), which provideswebsite design, de-

velopment, search engine optimization(SEO) services and social media man-agement services. Claypool’s work his-tory includes stints at Metro PaintSupplies, VeriFacts Automotive, theNational Auto Body Council (NABC),the I-CAR Education Foundation andSkillsUSA. He is the founder of Men-tors At Work and co-founder of theCollision Industry Foundation. Heserved, on a volunteer basis, as theSkillsUSA World Team Leader for theWorldSkills Championships from 2003to 2011.

»|Web Presence |«


Collision avoidance used tomean being watchful andreacting quickly in orderto brake or steer out of

harm’s way. These days, some ve-hicles also “watch,” and when theydetect an impending crash, theycan automatically avoid or minimizedamage by reacting faster than thedriver can.

The National Highway TrafficSafety Adminstration recommendsthat all new cars include collisionavoidance systems, and as thesesystems become more common,detailed information for removingand replacing components and/orreprogramming them will be a necessity. Of course, vehicle man-ufacturers all have their own sys-tems, requiring specific proceduresfor every make and model you seein your shop.

Collision avoidance encompassesmany technologies, including auto-matic braking, self-steering, drowsi-ness alarms, pedestrian impactdetection and blind spot scanning.How can you possibly understandthese complex systems without thediagrams and information generatedby each OE?

Below – as an example only – is abrief sampling of OE collision avoid-ance information for some Cadillacand Mercedes-Benz models. Thesemay not be the complete articles or procedures.

Service Procedure » Always referto ALLDATA Collision S3500 forsafety procedures, identification of

material types, recommended refinishmaterials, removal and installationprocedures. Always refer to the man-ufacturer for questions relating to ap-plicable or non-applicable warrantyrepair information.

Example One » 2012 Cadillac CTSWagon AWD: Pedestrian impact detection module replacement

Preliminary procedure: Removethe instrument panel compartmentassembly.

Parts required1. Pedestrian impact detection mod-

ule bolt/screw (Qty 3). Tighten to 10Nm (89 lb. in.) (1) (Figure 1).

2. Pedestrian impact detection mod-ule (2) (Figure 1).

Caution: Refer to Fastener Caution.

Repair Procedure1. Disconnect the electrical

connectors.2. Refer to Control Module Refer-

ences for programming and setupprocedures.

Example Two » 2012 Mercedes-BenzE 350 Coupe (model 207.359): Re-move/install Distronic Sensor (DTR)(distance sensor)

Refer to information on preventingdamage to electronic components dueto electrostatic discharge.

1. Switch off ignition.2. Remove radiator grille.

3. Unlock and detach electrical con-nector (1) on Distronic electric controllerunit (A89) (Figure 2).

4. Remove Distronic electric con-troller unit (A89) from bracket (2) byunscrewing nuts (3) (Figure 2).

5. Install in the reverse order.6. Perform initialization of Distronic

electric controller unit (A89) with StarDiagnosis. Initialization is necessaryafter:

� Replacement of or detachment/attachment of the Distronic electriccontroller unit (A89).

� Replacement of steering columntube module control unit (N80).

� Replacement of yaw rate sensorfor lateral and longitudinal acceleration (B24/15).

TechTipsCollision Avoidance Sensors,Modules, Cameras…Oh My!

By Karl Kirschenman and Jeff Webster


Figure 1

Figure 2 1 Electrical Connector2 Bracket3 Nut

� Mechanical damage to the Dis-tronic electric controller unit (A89).

� Accident repairs in front end.� Alterations on the camber, track

width, caster or of the level ofthe vehicle at the front or rearaxle.

Connect Star Diagnosis and readout fault memory.

7. Perform calibration with Star Di-agnosis when replacing the Distronicelectric controller unit (A89).

8. Read out fault memory with StarDiagnosis and erase if necessary.

Example Three » 2012 Mercedes-Benz E 350 Coupe (model 207.3): Re-move/install sensors for Blind SpotAssist

• A86/2b1: Right outer radar sensor,rear bumper

• A86/2b4: Left outer radar sensor,rear bumper

Refer to information on preventingdamage to electronic components dueto electrostatic discharge.

1. Lift vehicle on lifting platform.Danger! Risk of death caused by ve-

hicle slipping/ toppling off the liftingplatform. Align vehicle betweencolumns of vehicle lift and positionfour support plates at lift support pointsspecified by vehicle manufacturer.

2. Remove cover (1) (Figure 3) when

removing the outer right radar sensoron the rear bumper (A86/2b1) withengine 271, 651.

3. Detach electrical connector (2)from outer right radar sensor on rearbumper (A86/2b1) or outer left radarsensor on rear bumper (A86/2b4)(Figure 3).

4. Extend outer right radar sensoron rear bumper (A86/2b1) or outerleft radar sensor on rear bumper(A86/2b4) out of bracket (3) and re-move (Figure 3).

5. Install in reverse order.

Example Four » 2012 Cadillac TruckEscalade/ESV AWD: Rear object alarmcontrol module replacement

Preliminary Procedure: Removethe front passenger bucket seat.

Parts Required1. Rear object alarm module nut

(Qty 3). Tighten to 2 Nm (18 lb. in.).2. Rear object alarm module.Caution: Refer to Fastener Caution.

Procedure1. Position carpet in order to access

module.2. Disconnect the electrical connec-

tor.3. Reprogram the rear object alarm

module after replacement. Refer toControl Module References. BSB

Karl Kirschenman, ALLDATA collisionproduct manager, holds a bachelor ofscience in communication. He has morethan 10 years of experience in the collisionindustry.

© 2013 ALLDATA LLC. All rights re-served. All technical information, imagesand specifications are from ALLDATACollision S3500. ALLDATA is a regis-tered trademark and ALLDATA CollisionS3500 is a mark of ALLDATA LLC.

Cadillac, CTS and Escalade are registeredtrademarks of General Motors. Mercedes-Benz and E350 are registeredtrademarks of Daimler AG and Mer-cedes-Benz USA. All other marks arethe property of their respective holders.

»|Tech Tips |«


1 Cover2 Electrical Connector3 Bracket

Figure 3

Track Talk

Someone once said, “It’s notwhere you start, but where you finish.”

Considering the path tohis current career in motor-sports, that person could havebeen talking about 2003NASCAR Technical Institute(NASCAR Tech) graduateJonathan Sickler.

For the last two years,Sickler has been an integralpart of Rev Racing where heserves as a finish fabricatorand drives the team rig thathauls the racecars. All thosemiles on the road and hoursin the garage could take a tollon a person, but not Sickler.

“If you’re passionate about

what you do and enjoy it, it doesn’t seem like work,” says Sickler.

Even if it doesn’t seem likework, the time and effortSickler and his team put in hasbeen well worth it. LastNovember, the No. 6 RevRacing Toyota team driven byKyle Larson captured the K&NPro Series East crown, markingthe first NASCAR touringchampionship for Rev Racingand NASCAR’s Drive forDiversity initiative.

More than a decade ago,when Sickler was installing carstereos in Pinellas Park, Fla.,NASCAR championship tro-phies were not exactly top of

mind. However, as he workedmore with cars, he developeda passion for them, evenbeyond the stereo component.Taking on the same tasks, dayafter day, he was ready for achange, and knew thatexpanding his knowledge ofcars was the first step.

At 25, Sickler packed up hisbelongings, drove across thecountry and enrolled at theUniversal Technical Institute(UTI) Avondale, Ariz., campusand completed the 51-weekCore Automotive Program.

With a solid mechanicalfoundation, Sickler was readyfor more. “Race City, USA” andNASCAR Technical Institute(NASCAR Tech) was his nextpit stop.

“The curriculum was reallystrong, and I was at the age

where I was mature enough tounderstand what I wanted todo and how I was going to get there,” explains Sickler.“NASCAR Tech provided aplatform for me to accomplishmy goals.”

At 27, Sickler was notdeterred from reaching the pin-nacle of the racing world. Heproves that no matter your age,a career in the automotiveindustry is possible.

“Shops and race teams are looking for qualified, skilled and passionate individ-uals,” says John Dodson, community/NASCAR teamrelations director at NASCARTech. “Those are the types ofgraduates we turn out, and theyget the job done.”

Sickler is talented and moti-vated, but notes that withoutthe education he received at UTI and NASCAR Tech, he would not be where he is today.

“You have to have an educa-tion in automotive technologyto get into racing,” says Sickler.“It’s really competitive andhands-on experience is the dif-ferentiator race teams are look-ing for.”

Sickler realizes how fortu-nate he is to be in this positionand wants others to know thatall things are possible.

“Whatever you put into life,you will to get out of it,” hesays. “If you work hard andbelieve in what you’re trying toaccomplish, you can do it.”

For more informationabout NASCAR Tech’s 10 yearsof starting careers, visitwww.uti.edu/partners/nascar.

Jonathan Sickler helped Rev Racing capture the 2012 K&N Pro Series East crown. A UTI and NASCAR Tech

graduate, Sickler says education and hands-on automotive experience is the differentiator shops and race teams

look for when hiring.

Education, Hard Work Pays Off forRev Racing’s Sickler

By: Kimberly Hyde, NASCAR

Follow NASCAR Performance on Twitter and Facebookwww.twitter.com/NASCARauto ■ www.facebook.com/NASCARPerformance

COVER STORY

More and more shops are considering OE to stand out from the competition.


onon

COVER STORY»OE Certification

If you’ve got it, flaunt it. Whatbetter for a body shop to flauntthan a certificate from an automanufacturer saying the shop

restores its models to manufacturer’sspecs?

Smart shops get certified so theystand out from the competition andoffer customers concerned about shod-dy repairs a measure of comfort know-ing a shop is third-party “certified.”

A Certain Cachet » There is a cachetto certification – but since the programsare not something many consumersthink about after a collision, it’s up toboth body shops and OEMs to promotethe programs’ benefits. Consumerawareness tends to be higher for repaircertifications for top-end lines. How-ever, for any shop, a certification – ormultiple certifications – makes a greatselling point.

The programs run from a simple“Pay a fee and buy our parts and youare certified” to more stringent pro-grams such as BMW, Audi and Mer-cedes-Benz where equipment andtraining are required.

In some cases, I-CAR Gold qualifiesa shop. Other OEMs require in-house

www.bodyshopbusiness.com 33

certification as way

ertificationertification

By Curt Harler

training and equipment. No OEMhands out certifications like candy onHalloween – they must be earned.

“It isn’t cheap, but it’s no big pain,”says Matt Dewalt, AAM, vice presidentof Scott’s Collision Center in Strouds-burg, Pa., and Scott’s Auto Service,Easton, Pa. He runs certification forboth shops.

“We’ve always strived to be aleader in our market and offerevery possible benefit to our cus-tomers,” says Brad Zara of Zara’sCollision Center, Springfield, Ill.“OE certifications are simply anextension of this benefit.” An in-dependent shop, Zara’s has heldHonda/Acura shop recognition for

three years and just recently gainedChrysler certification.

GW & Son Auto Body in OklahomaCity, Okla., has been a certified shopsince 2005. Gary Wano, Jr., executivevice president, says he was pushed tocertification by DRP concessions.

“I was fed up with competing onthe basis of repair price,” he says. “We

began operating as GW & Son in 1985with a tag line: Quality has its price,price alone has no quality. Then wefind ourselves in a bidding war forwork. It didn’t take us long to under-stand we wanted to compete basedon all-over merit, and the OE-certifiedprograms were the tools we used tolegitimize this tag line.”

Today, GW & Son trumpets the factthat it’s Oklahoma City’s only bodyshop certified by Jaguar, Volvo, Mer-cedes-Benz and aluminum body. Andit’s currently pursuing BMW training.

“I believe that we are still in a stagewhere consumers assume that a rep-utable shop is going to be qualified torepair their vehicle,” says Zara. Hesays extremely high-end vehicles re-quiring specialized equipment are theexception. “Certification on what I willcall ‘average vehicle makes’ may notbe sought by consumers at this point.”

Dewalt of Scott’s Collision’s decisionwas strictly business. “Certificationadds more credibility to the business,”he says. The shop first got VW certified,then added Nissan, Chrysler and thealuminum Corvette Z06.

High Price » There is a price. Wanoputs the average cost of a four-dayfactory certification at $20,000 whentravel, per diem and lost productionare figured in to the equation. Sometraining programs last two weeks.

“We have invested in one technicianwho traveled to Stuttgart, Germany,twice for Tier-1 aluminum training,”Wano says. All told, his multiple OEMprogram trainings equate to hundredsof thousands of dollars.

Specialized tools often are required.“We have around $300,000 of equip-ment purchased,” he adds.

Oklahoma City is not the biggestluxury vehicle market. Wano says thecost associated with his level of com-mitment can be prohibitive when mostof the big producers work with insurersthat have implemented cost savingrules for these repairers to live by.

“I repair roughly 18 percent lessautos with a 13.4 percent increase inrevenues compared to my stats while

COVER STORY » OE Certification


on the DRP programs,” he says. Thesenumbers are before completing trainingfor the BMW brand.

Due to the limited number of high-end vehicles in his market, too, Zarachose not to pursue certification inBMW, Audi, Jag, etc.

“They are typically very large in-vestments,” he says.

Adds Wano, “There is a lot of moneywrapped up in certification, but thereturn is great.”

Dewalt agrees. His first certifi-cation, from VW, cost about $6,000and will run about $3,000 for re-newal. Nissan cost him $2,250 andChrysler about $1,000 with a similarannual renewal.

“The biggest time and financial re-quirements of the Honda ProFirstrecognition and Chrysler certificationshappened to be one that we havemaintained for a long time: I-CARGold Class,” Zara says. Aside from

that, there was no other cost for Hondacertification.

Chrysler’s was more rigorous withrequirement of an on-site, in-depth in-spection. “I believe it was a $2,900one-time fee that we were able to coverwith parts rebates,” Zara continues.“The parts rebates are certainly meas-urable. However, the generation ofbusiness is not as clear at this pointsince our certifications are just a partof a much larger marketing initiative.”

In It to Win It » Competition is es-pecially keen in the upscale market.“Shops have to be in it to win it,”says John Donito, manager of after-sales field support for Volvo, Rock-leigh, N.J. “The luxury customer is acompletely different cat. We have tobe sure both the dealer and outsideshop are what they say they are…that they have the commitment to fa-cilities, training and quality.”



“There is a lot of money

wrapped up in certification,

but the return is great.”

— Gary Wano, Jr., executive vice president, GW & Son Auto Body

says GaryLedoux, as-sistant na-tionalmanagerfor Ameri-can HondaMotor Co.’sCollisionParts and ServiceMarketing.

In Honda’s orig-inal program, ashop (dealer-owned or inde-pendent) had to besponsored by adealer parts de-partment. That was eliminated with the newProFirst program.

“Now, any shop can register simply by going toProFirst.honda.com,” Ledoux says.

“Continuing with Collision Link made sense be-cause of all the inherent benefits,” he explains. “As

For that reason, BMW restricts certifi-cation to dealerships. “That is a legal restriction, by contract,” explains Marcos Ehmann, wholesale manager for BMW. “We require a minimum of 51 percent ownership.”

Likewise, Toyota does not certify non-Toyota dealership shops, according toJerry Raskind, wholesale parts managerfor Toyota.

Hyundai doesn’t have a body shopcertification program just yet. However,look for the company to have some-thing to talk about potentially in latesummer 2013.

Honda kicked off its “Body Shop Recog-nition” program in June 2009, recognizingshops that used Collision Link and thatwere top performers for their respectivepaint companies. That program endedon April 30, 2012. The current ProFirstrecognition (not certification) programbegan Oct. 1, 2012.

“It is what we consider the ‘next level,’”



Once a shop becomes “certified” byan automaker, it helps to advertisethis fact to discerning consumersso they know where to take theirvehicles for repairs.

our Honda and Acura products havebecome more complex and sophisti-cated, not only in the way they arebuilt but also in the construction ma-terials used, we knew we needed col-lision technicians who were versed inthe new technologies and who couldmake a proper repair. Thus, we turnedto I-CAR.” Other OEMs have gonethe same route.

With less than 1 percent of the U.S.market, Volvo can’t afford to do in-house certification of shops. Rather,they work with I-CAR. “They are theindustry gold standard,” Donito notes.

VW also requires specific I-CARcourses for its program.

Scott’s Collision is a couple of coursesaway from achieving I-CAR Gold.Both Nissan and Chrysler will recog-nize those courses, Dewalt notes. Insome cases, an OEM will certify ashop that is just short of I-CAR Goldas long as they achieve it within a

ures they put enough resources behindOEM programs. “I had wanted to dothings with I-CAR,” he says. “But themanufacturers we have do not requireit or recognize I-CAR as part of theircertification. So I see no need to getmore outside training.”

Volvo certifies both on-site Volvorepairs and independents. “A shopdoes not need an ownership relation-ship, but normally there is a partnershipthere,” Donito says. The body shopwill purchase parts through the Volvoretailer, and the Volvo mechanics willwork on things like resetting servicelights or ABS lights.

Regardless of whether the shop istied to a Volvo dealership or an inde-pendent, the process is the same. Thelocal Volvo retailer supplies documen-tation for the body shop to fill out.That information is evaluated at Volvoheadquarters in New Jersey, with re-view by a local representative.



A plaque or certificate typically comes withcertification, which body shops can proudlydisplay in their reception areas.

year. However, a shop that is not wellon its way will not get any slack.

GW & Son is not I-CAR. Wano fig-

While fit and finish are important,that is not the whole game. Volvo eval-uates body shops for parking, identi-fication and safety. Keep in mind thatthese customers are an upscale group.

“The shop doesn’t have to look likea Volvo retailer, but it has to be com-

mensurate with Volvo standards,”Donito says.

Some OEMs, including BMW, willnot certify a body shop that is not partof a dealership. Rather, they will pro-mote the shop as “BMW trained.”

Payback on all these programs is

good. For instance, Honda’s CollisionLink uses a VIN-scrubbing technology,which helps ensure that the shop getsthe right part the first time, savingtime and trouble. ProFirst recognitionis open to dealer-owned shops andindependents – as long as the inde-pendent meets program requirements.These include use of OEConnection’sCollisionLink and status as I-CARGold Class.

“In addition, someone in the shopmust have completed the Honda/Acu-ra-specific I-CAR class, HON01,”Ledoux says. Having I-CAR administerthings saves Honda money, too.

Thus, for shops and dealerships,success is a two-way street. “Thanksbe to God, the relationship betweenour sponsoring dealerships is one ofincredible mutual respect,” Wano says.

Customers’ View » Many OEMs donot have much interaction with cus-



“We have gotten a few jobs due to

our certifications. However, the

immediate benefit has been

more in the area of expanded

price matching on parts and

parts rebates.”— Brad Zara,

Zara’s Collision Center

tomers when vehicles are repaired atindependent shops. But the shop own-ers who are in certification programsappreciate the cachet.

The overriding benefit to cus-tomers is peace of mind. They canbe sure that, as far as their insurancecompany allows, OE parts have been used and that the vehicle is

repaired to OEM safety and technical standards.

“This ensures that the vehicle struc-tural integrity is maintained and safetysystems are repaired to Volvo stan-dards,” Donito says.

Says Ledoux, “CollisionLink facili-tates our conquest program, which al-lows greater use of Honda Genuine

parts. Having a shop that is I-CARGold Class means that the techniciansare well-trained. We feel this will resultin a better repair and a safe repair forHonda customers.”

Honda dealers win because, withCollisionLink, they sell moreHonda/Acura genuine parts and itsaves them some administrative time.Shops get the right parts the first timeand get to use more OE parts. “Itworks for the consumer because theyget a higher degree of OE parts, andwe believe they are getting a better,safer repair from an I-CAR trainedshop,” Ledoux says. “And it worksfor American Honda because we feelour customers will be getting a betterrepair at a ProFirst shop.”

Drive out of a Volvo-certified bodyshop and you get a one-year, unlimitedmileage warranty for all parts installed.That warranty runs in tandem withthe body shop’s own fit and finishpolicies. However, the associated Volvoshop does not indemnify the bodyshop work, Donito says. The customermust work with the body shop onany concerns.

Wano plays up his shop atmosphere.“It is not uncommon for us to offer atour to our high-end customer base,”he says. During this tour, the customerwill see multiple high-end cars in var-ious stages of repair in a clean and orderly facility.

“We lose very few customers, espe-cially when they ask a competing fa-cility for a similar tour,” Wano says.

Insurers are a different animal. Some-one must resolve questions with thecustomer’s insurance policies, severalOEMs say. “You have to deal with in-surance company micro-managementwith salvaged or used parts,” Donitosays. “The best of intentions can belaid to the side.”

While he’s enthusiastic about theROI on his certifications, Wano notesthere often are insurance issues. “Youwon’t be working at the prevailingprice,” he warns shop owners consid-ering certification. “A shop that is partof a DRP program will have a difficultrow to hoe. You’re not going to make



Nominate them now for the prestigiousBodyShop Business Collision RepairShop Executive of the Year award, and ifthey win, they’ll get an expenses-paid trip to LasVegas…not to mention a spiffy award plaque andtheir name among 30 years’ worth of past collisionrepair legends.

The award is given to a true collision repair“visionary,” someone who has experienced greatsuccess through innovative thinking, overcomingchallenges and persevering.

Any person employed in a collision repair shop asa manager or owner is eligible. The shop can beindependent, a dealership or franchise. The winnerand a guest will receive an expenses-paid trip to theInternational Autobody Congress & Exposition(NACE) Oct. 17, 2013 in Las Vegas, where they willbe presented with the award.

To nominate, visit www.bodyshopbusiness/execoftheyear

TriptoVegas!WinYourBossa WinYourBossa

TriptoVegas!

the money that you want to make torecover your investment. You mighthave to think outside the box a bit.

“GW & Son KPIs do not fit withinthe severity expectations of the carrier,yet the carrier pays the bill. We simplyrepair the car per OEM requirements.That documentation and customersupport, and the seven-plus years ofexperience in the program, lend toour credibility.”

Wano says that some insurance com-panies, recognizing that their customerpays a hefty premium to insure a Jagor Volvo, have no problem using acertified shop. “Those insurers wantto be sure their customer base is takencare of,” he says. Other companies, hesays ruefully, are not as certification-friendly. “We’ve had feathers ruffledon both sides.”

Since at least three of GW & Son’sOEM programs specifically forbid useof used parts, tensions can mount.

“In my opinion, anyone looking tobecome certified within the high-endluxury brands simply needs to un-derstand that your customer is theauto owner, and your repair processis driven by the OEM. There is noroom monetarily to stay OE-certifiedcompliant while serving within theDRP environment,” Wano says. “Youcan’t serve both masters. Margins getreally shrunk. Either you are in a DRPprogram or you are not.”

Zara, who is a DRP shop for a num-ber of insurance companies, sees it abit differently.

“I feel that our certifications arejust one more thing that can set usapart from the other shops in ourmarket as well as other providerson these DRP programs that wecompete with,” he says. “We havegotten a few jobs due to our certifi-cations. However, the immediatebenefit has been more in the area of

expanded price matching on partsand parts rebates.”

Many OEMs put the need for dealerreplacement parts right into the cus-tomer’s hands. “The structural integrityof your Volvo depends on every bodypart used,” the company’s flier to cus-tomers says. “It is important to insiston Volvo genuine replacement partswhenever possible.” Support like thatmakes it easier for a certified shop tosupport clients who want cars fixedto the manufacturer’s specifications.

While Zara says he has not seenany specific increase in insurance busi-ness due to their certifications, “Wehave gotten some nice comments onsocial media and cards in the mail fol-lowing the announcements of our cer-tification achievements.”

Other Considerations » Some cer-tifications are easier to obtain thanothers…although to the customer, theyall look good hanging on the wall.Nissan and Chrysler, for instance, areeasy compared to BMW. That is not tosay the former certifications are flimsyor not worthwhile. Rather, they mightbe better entry points for a shop strivingfor certification before taking the plungeinto a more expensive program.

There is another consideration, too.Can a shop afford to have certifiedtechnicians working on a Ford pickup?On the other hand, can the shop affordto ignore a long-standing good cus-tomer’s “other” vehicle?

“Training represents a great deal ofcost,” Wano says. “I can’t afford tohave a tech working on somethingelse.” GW & Son answered that ques-tion by opening a second shop tocomplement the 32,000-square-foothome operation.

Thus, ROI matters. “I am not a503c,” Wano states. “We are a for-profit corporation.” Due to the OEMrepair requirements, he has found hisestimate line count has increased, aswell as the rate of repair. He creditsthis to the OEM procedures and a cus-tomer-only focus.

“We only have State Farm as areferral source because they under-



stand and are willing to pay what ittakes,” he notes. “We have foundour repair remittance is justifiedand supported.”

No matter the program, manufac-turers require regular recertification.Volvo is typical with recertification re-quired every two years.

Over time, individual shops andOEMs get a feel for the tangible andintangible benefits of re-signing. “Wecan measure the number of shops onthe program and the attendant partssales… both of which are headed up,”Ledoux says. They also measure thenumber of hits on their shop locatorsite (collision.honda.com), which revealshow many consumers looked for arecognized body shop. “This is alsoheaded up,” Ledoux says.

Does that mean business? Whilesaying it is difficult if not impossibleto measure, Ledoux says they knowanecdotally that programs build traffic.“Shop managers have told us that if aHonda owner comes to their shopafter seeing them on the ProFirst shoplocator site, chances are really goodthat they will write the estimate andsell the job because the customer feelsthat their car will be fixed in a completeand safe manner.”

Although Scott’s has been Nissancertified for less than six months, De-walt was recently surprised by gettingat least four jobs as a direct result ofthe Nissan website referral program.

He admits he didn’t expect a dime’sworth of work from the VW certifica-tion – the closest VW dealer is 45 min-utes away. “But right away we gotthree referrals, including a couple fromout of state,” Dewalt says. While NewJersey is just across the Delaware, jobscame from New York City.

Wano says Mercedes-Benz USA doesa great job informing the owner aboutthe pre-engineered crash ability oftheir product. “To restore this crashresistance, the damaged Mercedesproduct needs to be repaired by atrained and equipped facility,” he notes.

It is that kind of OEM supportthat keeps shops coming back forrecertification.

“We will continue to incorporateour certifications into our marketingto bring more awareness to con-sumers,” Zara concludes. BSB

Curt Harler is a Cleveland-based freelancerspecializing in the auto, technology andenvironmental areas. He can be reached [email protected].



OEMCertification Matrix

Nissan X X X X X X X X X X X X X

Volvo X X X X X X

Toyota X

Mercedes X X X X X X X X X X X X

BMW X X

Honda X X X X X X X X X X

Chrysler X X X X X X X X X

Volkswagen X X X X X X X

Jaguar X X X X X X X X X X X

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How high should the exhauststack be above the buildingroof?Answer provided by A-Frame SprayBooths: The exhaust stack height iscontrolled by local code. In general,the stack should extend a minimumof three feet above the peak of thebuilding roof.

In some areas, the stack is requiredto be one and half times the buildingheight. Also, it’s common for thestack to be required to terminate aminimum distance from the prop-erty boundary. Check local code.

TECHNICAL

Ever wonder about some of the technology on spraybooths?Does it get your head spinning like a reverse incline fan?Here are the answers to your questions.


SprayboothSpraybooth


How do you know when intake or exhaust filtersshould be changed?Answer provided by Col-Met Auto Direct: Sounds simpleenough, right? Not so much. There are many variablesto consider when asking this question, such as:

� Environment: Is my shop very clean, moderatelyclean or on the dirty side?

� Volume: How many vehicles am I painting perday/week/month?

� Spray product: What am I spraying inside of mybooth?

� Pressurization: Is my booth pressurized with anair make-up unit attached, or is it non-pressurized?

You could probably come up with even more variables,but these are the main ones to consider.

Let’s also separate the two types of filters inside thebooth: intake filters and exhaust filters.

Booth manufacturers spend a lot of care in the designand functionality of the airflow to be productive andwithin the required guidelines. It’s important to usethe recommended OEM filtration, which is generallymade available by the company that sold you the booth.Having said that, there are a few generic guidelinesyou can follow:

� Intake filters: It’sfairly easy to see the in-side of the intake filter. Agood rule of thumb is toreplace this filter whenthe inside becomes dirtyor discolored. In an av-erage shop that’s fairlyclean, this can be doneevery two to four monthsor about every second tothird time you replace your exhaust filters.

� Exhaust filters: The bad news is that you can’treally see the inside of an exhaust filter. The good newsis that most paint booths come with a handy devicecalled a manometer. This device has a visual indicatorthat displays the “load” on your exhaust filters. Oncethe manometer has been properly balanced prior tousing the booth, it can show you the progression of thecontaminants building up or “loading” the filters. Agood rule of thumb is that you want to change thesefilters when the load reaches about a half-inch. In anaverage “one-car-a-day” shop, this can be done typicallyevery two to four weeks.

TECHNICAL » Spraybooth Q&A

Answer provided by UniCure: A dou-ble-wall booth is constructed of twolayers of sheet metal with a layer ofinsulation in between. The insulationis usually a rockwool or similar prod-uct. A single-wall booth is constructedof a single layer of sheet metal at aheavier gauge and doesn’t have a

layer of insulation. The main differ-ence between a double-wall boothand a single-wall booth is price andcosmetics. The smooth exterior of adouble-wall booth looks great, butyou will usually pay a premium forthose looks. There are some addi-tional features such as inside acces-

sible light fixtures, but those can beadded to a single-wall booth as well.When it comes to function, there islittle advantage to a double-wallbooth over a single-wall. The airmakeup and mechanical systemscan be exactly the same on eitherstyle of cabin. Both units can havespray and bake capabilities with thesame performance. A single-wallbooth can also have the same effi-ciency as a double-wall. The insulatedpanels of a double-wall do not retainsignificantly more heat than non-in-sulated panels. Air in a sprayboothis moving so fast that the heat transferrate from the air to the booth wallsis low. The greater benefit to retainingheat and increasing metal tempera-tures of the painted surface duringbake mode is the proper pressure inthe cabin. This is why it’s more im-portant to focus on the air flow andcontrol systems of a spraybooth in-stead of the cabin style. As a spray-booth manufacturer with U.S.-madesingle-wall and double-wall booths,we offer both products, but the sin-gle-wall booth is the workhorse ofthe industry.



How does an insulated booth differ from a single-wall unit?

Where should the lights be located? What type of bulbs are best?Answer provided by Global FinishingSolutions: Proper lighting is ab-solutely crucial to achieving a perfectfinish. You want to ensure that youhave enough overlap of all the lightgenerated in the cabin so that nomatter where the painter is standing,the shadows that would be createdby the light directly behind them iseliminated by the other lights in thebooth. The best arrangement forlights in a spraybooth is a combina-tion of angled lights in the ceilingand vertical lights in thesidewalls. The lights in the ceiling il-luminate the top surfaces of the ve-hicle, while the vertical sidewalllights illuminate the sides and lowerareas. The reason we recommend

Bulbs continued on pg. 56



vertical lights in the walls instead ofhorizontal is that they provide thegreatest spread of light across the sidesof the vehicle from top to bottom. Hor-izontally-oriented lights concentrateon the center of the vehicle, but don’tspread enough light above and belowto ensure complete illumination. Ver-tically-oriented lights provide greatercoverage of lower surfaces, and achievebetter overlap to eliminate shadowsas the painter passes in front of them.We tend to rely primarily on T-8 col-

or-corrected fluorescent light tubes for the best possible balance betweenenergy-efficiency and light spread. T-12 light tubes are not nearly as ener-gy-efficient as their T-8 counterparts and don’t produce as much light,and so are generally accepted as inferior light tubes for spraybooth appli-cations. T-5 tubes tend to produce a more “concentrated” pattern of lightthat is ideal at greater distances, but when placed inside a spraybooth,we’ve found that the distance between the walls and the vehicle is not suf-ficient to get the optimum spread of light. T-8 tubes hit the “sweet spot” ofproviding a great spread of color-corrected light at the perfect distanceand consume little energy.

Bulbs continued from pg. 54 What fuel gas pressure/volumedoes your air replacement need?Answer provided by Spray-Tech: Thetype of fuel depends on what’s avail-able. In most metropolitan areas,natural gas is the fuel of choice be-cause of availability. When addingair makeup to a building, additionalload becomes necessary. Piping fromthe street and upsizing the metermay become additional expenses.However, in most metro areas, nat-ural gas is the most eco-nomical fuel choice. Inrural areas, connectingto natural gas may becost prohibitive or noteven an option. Lique-fied petroleum gas(LPG) or propane workbest, and a great sup-plier can be an asset.When using LPG incolder climates, use avaporizer to prevent liq-uid propane from reach-ing the burner manifoldin the air makeup unit.

Most air makeup units work be-tween 7 and 21 inches of water col-umn pressure using natural gas and11 inches using propane. Pressurehas an impact on the operating char-acteristics of the air makeup units’burner manifolds, and usually a dy-namic pressure reading is used todetermine low and high fire settingsto provide a clean burning system.

A system’s volume will be deter-mined by the air makeup’s BTUHrating. Volume is the amount ofcubic feet of fuel delivered to the airmakeup to generate the temperaturerise desired. This will vary accordingto the system’s location and the nom-inal temperature recordings for acalendar year in that particular lo-cation. The correct volume deliveredto a system is impacted by the fuel’spiping system and must be calculatedto assure proper fuel capacity anddelivery. A licensed professional con-tractor, architect or propane fuel sup-plier can make these calculationsand assure proper volume delivery.

Answer provided by Garmat: Fan se-lection is crucial to spraybooth per-formance. The design differences havea major impact on the stability andconsistency of air flow, the useful lifeof the filter, and the long-term durabilityof the motor and bearings.

Axial fans are designed to movehigh volumes of air. Tube axial fansare the typical axial fan designs usedin spraybooth applications. They’regenerally chosen for their low pricepoint, not necessarily for their effec-tiveness. They’re sensitive to changesin static pressure, or the resistance toair movement. As filters load, the ca-pacity of the fan diminishes quickly.

Centrifugal fans accelerate air radi-cally by changing the direction of theair flow. They’re quiet, reliable andcapable of operating over a wide rangeof conditions. There are several types,but the three most efficient designsinclude forward curve, reverse inclineand airfoil reverse incline fans.

Forward curve fans are the most ef-ficient for a given set of conditions,such as HP, size and initial static pres-sure. Prone to collecting overspray,these fans are best used on the supply

side and are not recommended foruse in exhaust applications.

The reverse incline fan uses bladesthat curve against the direction of thefan wheel. The blade’s reverse directioncreates a vacuum of air that surroundsthe blades, reducing overspraybuildup. These fans are highly resistantto static pressure, and provide more




How many different types of fans are there for spraybooths? consistent air flow as the filters load. The airfoil reverse incline fan is

the most efficient of all the centrifu-gal fan designs for exhausting air.The airfoil design of the blade allowsthe fan to run at a higher speedmore efficiently, and with less noise,than the typical reverse incline, whilestill offering the benefits of the re-verse incline fan.

makeup systems, while others comewith auxiliary air systems such as airjets or ceiling fans already installed. Ifyou’re looking for waterborne capa-bility now, make sure the system isone of the latter.

High-powered downdrafts dry wa-terborne paint quickly and maintainthe cleanest environment possible bymaintaining the downdraft air envelopeand pulling any contaminants down-ward. Auxiliary air movement systemsdry waterborne paint the fastest, butmust be maintained and kept clean soas not to stir up dirt or debris. Bothoffer great results and should be dis-cussed with your paint professionalsand the booth salesperson.

There are many factors unique toeach shop that may make one of thetwo booths discussed a better recom-mendation. Paint companies are con-tinually improving the chemistry andtechnology behind the coatings andknow what’s needed to dry their prod-uct. The booth should meet the paintbrand’s minimum requirements forheat and air flow. Once you havematched what your paint rep or jobberis recommending for the booth modelthat best suits you, you should be ableto make a more informed decision.

Waterborne paint is the future, sokeep that in mind regardless of whatyou buy. Make sure the system isready for water out of the box or canbe easily converted in the future.Ask what the manufacturer’s wa-terborne add-on system is and howmuch the complete system and in-stallation is going to cost when you’reready to switch. BSB

Answer provided by Accudraft: It de-pends. Be aware of what you’re buyingbecause all booths are not the same.While doing research is great, nothingbeats talking to an experienced andqualified salesperson. They should beable to point out the differences andbenefits for each model the booth man-ufacturer offers and whether a modelis waterborne ready. The salespersonwill also be able to speak intelligentlyabout the overall cost per model, whichis where most decisions will be swayedone way or the other.

Many manufacturers offer out-of-the-box booths that are ready for wa-terborne paint. Some are high-powereddowndraft booths with extra large air

If I buy a brand-new booth, will I have to retrofit it for waterborne?

By Jason Stahl

Ever look at something somuch, you fail to see anymore of the fine details? Let’ssay it’s an email you’re writ-

ing and you’ve gone over it fivetimes, making sure it’s perfectlyspelled and grammar checked. Yetafter you send it, you notice some-thing you missed. It’s probably be-cause you looked at it too manytimes and didn’t have someone elseproof it as well.

It’s the same thing with a business.When you’re in it every day, all day,sometimes you lose the ability to stepback and see what can be improvedor what is holding the company back.That’s when you wonder if a freshpair of eyes would do you good.

According to consultant Mark Clay-pool, there shouldn’t be any wonderingwhatsoever. A disciple of Michael Ger-ber, who wrote The E-Myth Revisited,Claypool says one of Gerber’s obser-vations is that 100 percent of successfulsmall businesses bring someone infrom the outside to take a differentlook at their business.

“If you have a bunch of ‘yes men,’they’re going to have trouble beinghonest with you, or you may not beopen to hearing what needs to bedone from them,” says Claypool.“But the observations an independentthird party who has no fear of beingfired might have tend to resonatewith the owner because it’s a freshpair of eyes coming in with an inde-pendent viewpoint.”

Dave Dunn, managing director andco-founder of Masters Autobody Schoolof Management, owner of Dave's AutoBody in Galesburg, Ill., and author ofbusiness management book Liquid

BUSINESS

ConsultantSo you’re at your wit’s end with your business and needsome help. Sometimes a fresh pair of eyes from a consultantis just what you need.


Hiringa

Amalgam, actually discourages peoplefrom hiring his consulting group ifthey aren’t the right fit.

“There are two basic profiles ofcustomers we have: someone who’sdesperate and if they don’t do some-thing now, they’ll probably go outof business. The other is someone

who is eager to do better. Those arethe ones we actually help,” he says.“We discourage the desperate onesnot to spend money with us – wewould rather they come to class firstto see if they want to be in the busi-ness. The reason is because it takesso long to get the proper philosoph-ical alignment on-site at their placewith the distractions that go on. Asthey’re trying to run their businessand you’re trying to help them,sometimes it’s difficult to get theirundivided attention. If you don’t re-ally want to partner with us, wedon’t want to fail as a consultant.”

Experience » Any Google search forconsultants will yield page after pageof professionals who promise to turnyour company into a mega-profitableplace where people love to work. Sowho should you choose? In Claypool’smind, choosing someone who has ex-perience in your industry is a must.

“It should be someone who haswalked miles and miles in your shoes,”he says. “They should have real-worldbusiness experience and have had suc-cess in your industry and done thingsto separate themselves from their competitors.”

Dunn says that a consultant should

BUSINESS » Hiring a Consultant


“One question to ask a consultant is, ‘If you’re so

good at this, why aren’t you running

your own shop?’”

—Dave Dunn

not just have real world experience,but also success as a business owner.

“One question to ask them is, ‘Ifyou’re so good at this, why aren’t yourunning your own shop?’ Consultantsare often made up of a variety ofprofiles – someone who failed at abusiness, someone who sold the busi-ness (which, for the life of me, I don’tknow why anyone would do that) orsomeone who has never been in thebusiness. A lot of them never actuallypractice anything; they’re more likethe armchair quarterback.”

Daren Fristoe, a 24-year consultantand head of The Fristoe Group, addsthat the consultant should be specificto your industry.

“It should be someone who hasdone whatever it is that you do be-fore – and done it for a long time.”

Claypool says that people who havewritten for trade magazines in a par-ticular industry or been speakers atindustry trade shows tend to be rec-ognized experts in their field and thusare good candidates to examine yourbusiness. But he advises to ask themfor references before hiring them.Fristoe agrees, adding that you shouldalso ask them for testimonials.

“It’s kind of like the Angie’s Listidea, where you literally can check tosee if someone did what they saidthey were going to do,” he says.

F is for Fearless » The consultantyou choose should also be fearlessand unabashedly honest and not afraidto tell you “like it is” once they lookthrough the fishbowl and observe thegoings-on of your company, says Clay-

pool. Fristoe seconds that, saying thata consultant should be painfully honestwith a business owner.

“If something doesn’t fit, they shouldtell you,” he says. “They’ll say, ‘I can’thelp you with this, but here’s someonewho can.’ I respect that more thansomeone who’s trying to wing it.”

Fristoe adds that the consultant,after doing an initial audit of a busi-ness’s operations, should also be honestand up-front with what the ownerneeds at what price point. “You maynot need the gold standard productbut just the bronze.”

Compensation » Fristoe explains thatconsulting can be done on a projectbasis, hourly basis or retainer. He be-lieves it’s important that consultantsoffer a wide range of product offeringsand price points. Claypool agrees,adding that companies should look ata wide range of consultants to find aprice they’re comfortable with.

“Consultants can be very expensive,”he says. “High-end ones can charge$2,500 to $5,000 a day, and small busi-nesses typically can’t absorb that cost.My rate is $1,500 a day. And if someonesays I need more than a day of yourtime, I tell them I will give them 40hours of consulting for ‘X’ amount ofdollars, which amounts to less than$1,500 a day, and they don’t have todo those 40 hours in succession.”

Claypool is also flexible with hisschedule, realizing that trying to getthings done during the chaos of regularbusiness is usually impossible. That’sanother thing business owners shouldlook for in a consultant: someone who’s



Before You Hire a Consultant, Ask:

1. Why did you decide to become a consultant?

2. How will we measure the results of our work together?

3. How will you communicate with me throughout the process, and how

often?

4. What was the biggest mistake you’ve ever made in business, and what did

you learn from it?

5. May I have the names, phone numbers and email addresses of five people

you’ve consulted for?

willing to work around their businesshours and work non-traditional hourswith them.“I always tell my clientsthat if they want to start talking businessat the end of the day through dinnertime, I’m open to that,” he says. “Oron Saturday, when we’re not constantlyinterrupted so we’ll probably get moredone that way.”

Mental Preparation » Business own-ers may convince themselves that theyneed a consultant, but they may not be ready mentally to accept direc-tion from an outsider. But Claypool says it’s crucial for them to get in the right mindset.

“They need to tell themselves, ‘I amspending this money for the purposeof taking my business to the nextlevel,’” says Claypool. “It’s letting goof their ego. We don’t all know every-thing. The owner must say, ‘I admit Idon’t know everything, therefore I’m

going to spend some money and Iwant to see some return on that in-vestment, so I’ll drop my guard andput my shields down and go intolisten mode.’”



Ready to Quit Your Day Job?

So you think you have what it takes to be a consultant? Ask yourself a few

questions first:

1. Do you truly have the expertise to share with others?

2. What will happen to your business if you take time out to consult?

3. Would others describe you as inspirational?

4. Do you like to travel?

Claypool advises to try giving your services away to someone first, then ask

them what they feel those services would be worth on a daily or weekly basis.

Fristoe cautions that the consultant wannabe understands they’re creating a

separate entity with its own tax ID number, business cards, website, etc., and

thus incurring the risk of offering counsel that may or may not be sound advice.

“You’re exposing yourself as an expert or leader in your field to dispense

advise,” says Fristoe. “You certainly need a lengthy level of experience in the

field, and it needs to be well-

rounded and not just in your spe-

cific discipline. People walk right

out of school thinking they’re a con-

sultant, but I think you need time in

the trenches. You have to have

experience running a business or

being in a management position or

role where you had accountability.

For example, I have 24 years of

experience and have seen a lot of

things in a variety of industries and

held many senior leadership roles. I

don’t know everything, but I do

know of a number of things that

have worked in the past.”

Robby Dunn of Masters School of

Auto Body Management believes a

consultant wannabe should ask

themselves one main question: “Do

I have a lot of patience?”

“I’ve learned that it requires a lot

of that,” says Dunn. “You think you

have wonderful ideas, and you

probably do, but things seem to

never happen as fast as a shop

owner or a consultant would like

them to. My first advice is to be

patient and understand that mean-

ingful change is a matter of

months, not overnight.”

Claypool says the business ownerhas to be open to what the consultanthas to say based on their assessmentof the business and be willing to goout on a limb and make some changes.

Also important is the owner explainingto the staff in advance that someonewill be coming to look at the business.

“The owner might say, ‘I’m bringingin a consultant who’s an expert in thisfield, and I don’t know about youguys, but I want to be in business andwant to be able to provide you withjobs long term. This consultant willhelp us grow and understand whatwe need to increase sales or customersatisfaction. And I’m hoping everyone

will give him their honest opinion.’”Claypool says when the owner sets

things up that way, the employeeswill tell the consultant what they feel,openly and honestly, provided theiridentities are kept confidential. Theconsultant can then compile their re-sponses and create a game plan, decideon a benchmark and establish whento touch base with the owner.

ROI » How does a business ownerknow if the hard-earned money they’reshelling out for a consultant is pro-ducing results? Claypool advises thatowners should establish benchmarkswith the consultant before the actual

consulting begins, establish what thedeliverables will be, then measure theresults in an agreed upon timeline.

A business owner may be so busyin their day-to-day activities that theymay not have an epiphany as to whenis the right time to hire a consultant. Itmight just come from a peer who talkshighly of an experience they had witha consultant. Or they could meet aconsultant at an association meeting.

Says Claypool, “At some point, ifthey start having some health issuesfrom stress, someone needs to say,‘Hey, you need some help in here,someone to come in and help run theshow a little differently.’” BSB


68 July 2013 | BodyShop BusinessCircle 68 for Reader Service Circle 91 for Reader Service

“My first advice is to be patient and understand

that meaningful change is a matter of months,

not overnight.”

—Robby Dunn

putties to clearcoats, Quest Auto-motive is now truly able to offera complete range of advanced re-finishing solutions.

“Above all else, our manage-ment team sincerely cares aboutthe end user, and we are proud tohave the opportunity to supply theentire refinishing industry with the

products they need and the servicethey desire.”

Added Tom Perry, vice presidentof sales and marketing for U.S.Chemical, “I am excited to seewhat opportunities our interna-tional presence can open up forQuest Automotive Products. Thereis virtually unlimited potential totake the combined product line of

Matrix, U.S. Chemical and Pro-Spray to the marketplace, and I ex-pect exceptional growth in bothdomestic and international marketsin the next two to three years.”

Quest Automotive Products willoperate manufacturing facilities inWalled Lake, Mich.; Massillon, Ohio;Canton, Ohio; and Biggleswade,Bedfordshire (United Kingdom).



Quest continued from pg. 12

costs for labor, materials and overhead have steadilyincreased. The only way we could survive was to ei-ther concede to the underpayments and cut our quali-ty of materials and labor…or push back. We foundshort-pay litigation necessary to stop the insurer’spractice of underpaying our customers and to enableus to provide the quality repairs that earn our cus-tomers (and their referrals) for life.”

Schaech credited a free legal seminar in Floridahosted by Barrett Smith of Auto Damage Experts, Ray

Gunder of Gunder’s Auto Center and Gunder’s attor-ney, Brent Geohagan, with motivating him and givinghim the information he needed to take action.

“That was a turning point for us. To hear Ray talkabout how he knew that if he hadn’t done somethinghe would be out of business struck a chord in me,and I knew then that I, too, needed to do somethingor we would lose our business,” Schaech said. “Raygave much credit to his success in having a greatsupport team in Barrett as his consultant and Brent ashis legal counsel.”

GEICO continued from pg. 12

courage other quality-minded repairers to seek similar actionsagainst the less-than-ethical insur-ers,” said Bradshaw. “We learned agreat deal in this initial case, and Ihave had to embark on two morecases against Nationwide for short-pays in the amounts of $5,663.24and $10,135.52. I’m confident wewill prevail as I know we are in theright. I know such actions are nec-essary to stop such behavior and tobest serve our community mem-bers, our employees and our com-pany. We’ll continue to share ourefforts with others so they mayknow that they no longer have toaccept insurer dictation of repairs,rates, materials and charges.”

ing the same. I’m very proud ofclimbing that mountain, and theview from where we sit is awesome.We’re currently receiving full pay-ment for our labor rates, proceduresand materials from nearly 50 insur-ers, and we’ll be adding more to thatlist in the weeks and months ahead.”

Nationwide continued from pg. 13

State Farm continued from pg. 13

By Jason Stahl

Some Georgia body shops arecharging insurers with steer-ing after raising their laborrates.

Mike Purnell of The Body Shop inBrunswick says that he raised hisrates from $42 per hour to $48 – thefirst time he has raised rates in 10years – and now insurers are takingcars to shops up to 70 miles away inWaycross. Other shops in his areathat haven’t raised their rates are being flooded with work, he says.

“The average rate in this town is$48,” says Purnell. “There has to besome law against what the insurersare doing. They’re price fixing andstarving the lower class.”

Purnell went on to explain why hehas had to raise his rate. “I’ve beenhit with inflation for the past 10 yearsand I’ve just sucked it up. People arelosing money hand over fist on paintand materials. All the good guys inthis town are hanging on by their fin-gernails. I would like to upgrade myequipment and give my people araise who haven’t had one in 10

years. I would like to give themhealth insurance, where last year Ihad to drop it.”

Ryan Dykstra, manager of Ad-vanced Collision Center, also inBrunswick, is in the process of rais-ing his rates and says that some in-surers are paying them while othersaren’t. He says he has had six cars ei-ther towed from his shop or pickedup by customers who didn’t want topay out-of-pocket costs.

In one case, Dykstra says, he told avehicle owner that she would owe anadditional $133 if they did the repair.He says she contacted her insurer,and the insurer subsequently had thecar towed to another shop.

“The insurance adjusters aren’tstupid,” says Dykstra. “They knowhow to word what they’re saying solegally it can’t be called steering.”

Dykstra consulted with a local at-torney, who told him that third-party



NationalGeorgia Shops Accusing Insurers

of Steering After Raising Labor Rate

claimants are in a more negotiableposition than first-party claimantswhen it comes to how much the in-surer is obliged to pay forrepairs.“It’s not realistic or reason-able for a prevailing rate to be a spe-cific number. It’s the way the freeenterprise system works,” he says.“There is a spectrum of numbers,and as long as the amount beingcharged isn’t well outside of any rea-sonable spectrum, then the insurerowes that rate.”

Glenn Allen of the Georgia Insur-ance Office says he is encouragingthe shops affected to contact his of-fice, but they need hard evidence.

“It will be difficult to respond to al-legations,” says Allen. “If a bodyshop owner has evidence of wrong-doing, then that’s definitely some-thing we would take a look at.”

Dykstra said coming up with hardevidence is easier said than done.

“You need a claimant, and theyhave to be willing to have their carsit for a month or however long it isnot getting repaired. And they willalso likely incur attorney’s fees be-cause even if the insurers end uppaying the rates, there is no extra

money to pay for attorney’s fees.It’s not in my program to hasslecustomers to get signatures, butmaybe if this escalates far enough, I will do that.”

As to the price fixing allegations,Allen said he didn’t believe that wasthe insurance department’s “area.”

“We want to know if business isbeing steered or if the consumer wasn’t given the opportunity tochoose a shop of their choice. If con-sumers are being told they have to goto a particular body shop or their ve-hicle will not be repaired, then that isa concern to us.”

Aaron Schulenburg, executive di-rector of the Society of Collision Re-pair Specialists, said this is not thefirst time he has heard about insurershauling cars to faraway shops toavoid paying increased rates.

“I’m familiar with the tactics of in-surers doing that. It’s unfortunatethat insurers are unwilling to recog-nize market rates and the fluctuationthat occurs in them and feel theyneed to resort to things such as steer-ing or manipulation of where theconsumer goes – if that in fact iswhat’s happening here.”



The Hartford Ordered to Pay $20 Million to Connecticut Shops

The Hartford insurance company has been ordered to pay $20 million in punitive

damages to auto body repair shops throughout the state of Connecticut.

The lawsuit was filed on the grounds of unfair trade practices and labor rate sup-

pression steering by the Auto Body Association of Connecticut (ABAC), according to

its president, Tony Ferraiolo.

The penalty was sanctioned by state Superior Court Judge Alfred J. Jennings Jr.

on Friday, June 5, nearly 10 years after ABAC filed the lawsuit.

In addition to this recent decision, the Superior Court jury ruled against The Hart-

ford in 2009, awarding $14.7 million in damages to nearly 1,000 body shops in the

state. However, those shops have yet to see the nearly $35 million award.

A Hartford spokesperson announced their plans to appeal. In the meantime, Fer-

raiolo says the decision could have a huge impact in the state if it’s upheld.

“If The Hartford follows the guidelines put in place by the judge and reports back,

[Jennings] would get all the data, and he’s hoping that the market will adjust. He did

warn that if they didn’t adjust fairly, he’d appoint a special master who would actu-

ally go out and determine what the rates should be in certain areas of the state. But

for now, he’s trying to let the insurance company do what it’s supposed to do.

“They can use a [direct repair labor rate] as a guide, but not solely as a rate for

independent shops,” he continued. “This would allow the marketplace to adjust to a

more fair labor rate because it would be based individually on each shop.”

ABAC has also filed a lawsuit against Progressive on similar grounds.

The Washington MetropolitanAuto Body Association(WMABA) has released theresults of its 2013 independ-

ent labor rate survey. Conducted byCSi Complete, the survey shows thatthe year-to-year door rate of shops inthe WMABA demographic has es-sentially remained stagnant.

“Depending on which area you’rein, it doesn’t seem that the actual ratehas changed in most of these marketsfor nearly 10 years,” said WMABAPresident Barry Dorn. “This surveyshows that there is a big differencebetween what you’re told is the ratewithin a market and what a statisti-cally valid survey shows. Shops aremerely existing; they’re not able tomake a return on their investment or

plan for future equipment and up-dates. They’re not able to give raisesto their employees or add benefits.”

Added Don Beaver, WMABABoard member and manager ofAntwerpen Nissan in Clarksville,Md., “The rates that are paid by in-surers have stayed pretty steady; it’sa daily struggle because every ex-pense we have has gone up year af-ter year. If we don’t do something tobring those rates up, our meagerprofits are going to be nothing.”

Aside from its disappointing num-bers, this year’s survey saw an in-crease in shop participation. At least50 percent of shops that took the sur-vey did so online through www.wmaba.com – a substantial increaseover last year.

“Shops were more likely to partici-pate because they understood theprocess from last year,” said WMA-BA Executive Director JordanHendler. “They definitely had lessconcern this year, because last year’sprocess was new to them and theyweren’t sure how it was going to go.But after going through it once al-ready, it was easy for them to do itand they knew their personal shopdata wasn’t going to be shared.”

Although the 2013 results show lit-tle change over the 2012 project,Beaver is optimistic about the future.“I hope we continue to do this everyyear so that it becomes more com-monplace for everybody to fill it out.It may be three or four years beforethis [survey] actually shows a trend.”



Circle 122 for Reader Service »

Washington Metropolitan Auto Body Association’s

Survey Reveals Stagnant Labor Rates

The Northwest AutomotiveTrades Association (NATA)has released the results of asurvey of Oregon collision

repair facilities asking them to rankinsurance companies based on tak-ing care of their customers after an accident.

More than 70 shops responded tothe survey, and the results indicatedthat State Farm and two smallerNorthwest-based auto insurers con-tinue to be among the best at takingcare of their customers after an acci-dent. And some of the other larger,best-known insurers – includingGEICO, Safeco and Farmers – areamong the worst.

“Just as medical providers seehow health insurers take care of

patients, collision repair shops in-teract with auto insurers on a dailybasis, so we feel it’s worthwhile toask how those insurers treat Ore-gon drivers after an accident,” saidBarbara Crest, executive director ofNATA. “We believe their viewswill be helpful to insurance compa-nies and consumers.”

More than 500 collision repairshops throughout the state re-ceived the survey, which askedthem to grade the Top 20 auto in-surers in the state in terms of howwell each company’s “policies, atti-tude and payment practices ensurequality repairs and customer serv-ice for Oregon motorists.”

This is the seventh time NATAhas conducted such a survey since

2004. Crest pointed to a number ofitems of interest in the findings ofthe latest survey:

� Repairers have consistentlygiven the same three companies agrade of B or better all seven timesthe survey has been conducted.State Farm has continued to holdon to the top spot, receiving anoverall grade of B+ again this year.But a Northwest insurance compa-ny, Oregon Mutual, nudged upfrom a B last year to a B+ in the lat-est survey. Mutual of Enumclawonce again ranked third with a B.State Farm is the largest auto insur-er in Oregon; Mutual of Enumclawand Oregon Mutual are ranked12th and 13th, respectively.

� In addition to Oregon Mutual,


www.bodyshopbusiness.com 77Circle 77 for Reader Service Circle 94 for Reader Service

« Circle 123 for Reader Service

Oregon Body Shops Give Top Grades

to State Farm, Oregon Mutual

six other insurers saw their grades improve from the2012 survey. Travelers became the fourth-highestgraded insurer by earning a B- (up from a C+ lastyear). Progressive, Ameriprise and Country Compa-nies each moved up half a grade to C+.

� Although the same four insurers were on the bot-tom of the rankings for the third straight year, the or-der amongst them changed because Allstateimproved to a C (from a C-) and GEICO brought itsD+ in 2012 up to a C- this year.

� Progressive’s improvement is notable given thatit had a D+ or worse (and the lowest or second-low-est ranking) in every survey between 2004 and 2009.Even last year, it was ranked 16th on the list with a C,but this year moved to eighth with a C+.

� Although Allstate still only received an averagegrade, that’s an improvement over the D or D+ it re-ceived in each survey between 2008 and 2011.

� Three insurers saw their grades drop. USAA,which ranked fourth last year, dropped behind Trav-elers and Kemper/Unitrin when it received a C+rather than the B- it did last year. American Familyand Liberty Mutual also dropped half a grade.

� Farmers and Safeco received an “F” from aboutone in four shops, the most failing grades received byany insurer. (By comparison, GEICO, the third-low-est graded insurer, received about half as many Fs asFarmers.) State Farm received an “A” from well overhalf of shops.

� In most cases, the grades given a particular insurerfrom shops involved in that insurer’s direct repair pro-



Circle 78 for Reader Servicegram (DRP) were higher than thosegiven by shops that are not part ofthat insurer’s program. This wasparticularly true with USAA andThe Hartford; their DRP shops gavethem grades of A- or better, whilenon-DRP shops gave these same in-surers grades of C or C+. But evenAmerican Family and Farmers di-rect repair shops gave those insurersonly average grades of C.

“Collision repairers say the insur-ers receiving the highest grades –which includes both larger andsmaller insurance companies – dothe best job of taking care of Ore-gon drivers after an accident,” saidCrest. “We hope consumers willtake these ratings into accountwhen choosing an auto insurer,and that insurers that receivedlower grades will work to improvetheir performance.”

CARSTAR Opens New Shop in ConnecticutCARSTAR Auto Body Repair Experts is expanding its network in Connecticut with

the opening of Kar Kare CARSTAR in Ellington, Conn.

Owned by Ed and Brian Bolles, and managed by Ron Midford Jr., Kar Kare

CARSTAR is located at 113 Windermere Ave. Kar Kare CARSTAR is a division of

Bolles Motors, which owns the Chrysler, Jeep and Dodge dealership in Hartford,

Conn. The family business has been in operation since 1976.

“The decision to partner with CARSTAR was easy,” said Midford. “In our

highly competitive marketplace and an industry full of consolidation, we needed

a partner to help us stand out from the rest. CARSTAR’s established supplier

network and insurance company relationships allow us to take our business to

the next level. We are very excited to be on board with CARSTAR and look

forward to the challenge.”

Added CARSTAR CEO David Byers, “We are excited to have Ed and Brian Bolles

join the CARSTAR network. We are thrilled to expand our presence in the Con-

necticut region, and welcome Kar Kare CARSTAR as our newest top-notch colli-

sion repair center in the area.”

terms of footprint and annual sales,to become the second largest retailauto glass business in the U.S., serv-icing 28 states covering approximate-ly 50 percent of the U.S. population.This retail expansion, in combinationwith our already established nation-wide auto glass network, Gerber Na-tional Glass Services, significantlyimproves our positioning with U.S.insurance company customers. Fi-nancially, we expect this acquisitionto be immediately accretive to ourearnings and cash flow, with signifi-cant synergy opportunities availableover time as the Glass America oper-ations are integrated into GerberGlass’s operating model. It will alsobetter position our glass business forgrowth alongside our growing colli-sion business.”

Added John Teeger, chairman ofGlass America Inc., “Glass Americaand its investors will benefit fromthe transaction by ownership in thesecond largest windshield repairand replacement entity in the United States and participating inthe considerable expected revenueand cost synergy benefits arisingfrom joining with Gerber Glass. Ourcustomers and employees will bene-fit from the combined regionalspread of operations covering a ma-jority of the states of the U.S., cou-pled with utilization of the GerberGlass call center and the financialstrength of the combined entity.”

Glass America operates 61 autoglass centers in 23 states and had2012 revenues of $43 million. GerberGlass operates exclusively under afully mobile retail glass service mod-el in 12 states and, in combinationwith its Gerber National Glass Serv-ices network, had revenues of $19million in 2012. The Boyd Group be-lieves that, in addition to operationalsynergies, there are opportunities togrow sales through a combination ofsame-store sales growth, acquisitiongrowth and market expansion, con-current with The Boyd Group’s U.S.collision growth.



ConsolidationThe Boyd Group Acquires U.S. Auto Glass Company with 61 Locations

The Boyd Group (Gerber Col-lision & Glass) announcedthat it has effectively ac-quired a majority ownership

and controlling interest in the retailauto glass business of Glass AmericaInc., which operates 61 retail autoglass locations across 23 states underthe trade names of Glass Americaand Auto Glass Services.

“This acquisition is very attractivefrom both a strategic and a financialpoint of view,” said Brock Bulbuck,president and CEO of the BoydGroup. “The automotive glassrestoration business is a natural andcomplementary extension of our in-dustry-leading collision repair busi-ness. This acquisition will increaseour U.S. glass business size, both in

Wisconsin Legislature Introduces Anti-Steering Bill

Wisconsin Assemblyman Ed Brooks (R-50) recently introduced Assem-bly Bill 237 regarding automobile repair facility steering by insurancecompanies.

The state legislature’s Legislative Reference Bureau (LRB) notes thatunder Wisconsin law, it is prohibited for an insurer that issues a motorvehicle insurance policy that covers the repair or replacement of motorvehicle glass from conditioning the coverage on whether the insured or athird party making a claim under the policy obtains services or partsfrom a particular vendor specified by the insurer.

According to the LRB, Assembly Bill 237 provides that the “consumerhas the right to select the motor vehicle repair facility of his or her choiceand prohibits an insurer that issues a motor vehicle insurance policy thatcovers repairs to a motor vehicle from:

1) requiring that repairs must be made by a particular contractor or re-pair facility as a condition of that coverage; or

2) failing to initiate or conclude with due dispatch an investigation of aclaim for repairs on the basis of whether the repair will be made by a par-ticular contractor or repair facility.

No hearing has been scheduled to date in the Assembly.

The Texas Franchise Tax legisla-tion, supported by the AutomotiveService Association (ASA) andASA-Texas, was included in Substi-tute House Bill 500, which recentlypassed the Texas legislature andhas now been signed by Texas Gov.Rick Perry.

Currently, automotive serviceand collision repair shops ownedand operated by new or used cardealerships are taxed at half therate used to tax independent au-tomotive repair facilities doingidentical work. The Texas statetax code classifies dealership




Legislation

sales as “retail” and allows theirservice and repair business to be included under that banner.Independent automotive repair-ers have not had the same opportunity.

The Texas Franchise Tax legis-lation, included in SubstituteH.B. 500, states that “the activi-ties classified as Industry Group753 of the 1987 Standard Indus-trial Classification Manual pub-lished by the federal Office ofManagement and Budget fall un-der Retail Trade,” addressing theTexas inequity.

Texas Governor Signs Franchise Tax Bill

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What sort of things do you do to relax?

Geez, I don’t have a whole lot

of relaxing time any more. We

have a condo in Naples, and I

joke with my wife that Naples

is my happy place. I can go

there and kind of just hang

out.

Are you surfing, fishing orgolfing there?

Actually, I like to walk on the

beach and catch the sunsets. It’s

the complete opposite of what my

day-to-day life is. I try to escape

everything while I’m down there as

much as possible.

Cincinnati is known for its chili,right? So is it Skyline or GoldStar for you?I am definitely a Skyline fan.

Is King’s Island the best amuse-ment park in the world?It’s pretty good in my book. Disney

World, too, but that’s a totally different

experience down there.

Are you a big rollercoaster fan?And what’s your favorite one?Yes I am. My favorite is The Beast at

King’s Island; I don’t know if it’s the

scariest, but it’s my favorite. BSB

Are you a Bearcats fan?I am a huge Bearcats fan. I

started going to the games when

I was 10. My dad graduated from

the University of Cincinnati

and introduced me to them.

Who is your favoriteplayer on the team currently?Actually, I’m more of a fan

of the coaches than

anything, oddly enough.

Looking at things from a

management perspective, I kind

of respect coaches, and I would have

to say Mick Cronin, the Bearcats’ basket-

ball coach, is a pretty deep thinker, and

that’s why I like him a lot.

Are you a deep thinker yourself?I like to think I am. Might be a shallow

pool, but to me it’s deep.

So what do you “deep think” about?Everything, from personal life to business

– where I am currently and where I want to

be personally and corporately, the whole

nine yards. How I can make the world – in

every aspect – somewhat better of a place to

be. I want to leave a positive mark no matter

what we do, whether it be how we run our

company or what our giveback to the com-

munity is or what my personal giveback is.

I’m thankful for a lot of stuff. Everyone has

their issues in life, but I’ve been fairly fortu-

nate, so I think it’s only right to give back as

much as I possibly can.

TheShop


Joe Sanfillipo IIIChief Operating OfficerUSA Collision Centers � Cincinnati, Ohio

bsb july 2013

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