bodyshop business

January 2013//Vol. 32 No. 1 www.bodyshopbusiness.com

Web Marketing » Adhesive Bonding » MSO Section

The Best IdeaI Ever HadCollision repairers share the inspirations that catapulted

their businesses to the next level.

Circle 1 for Reader Service

InsideJanuary

January 2013 Vol. 32 No. 1

BODYSHOP BUSINESS (ISSN 0730-7241)(January 2013, Volume 32, Number 1): Publishedmonthly by Babcox Media, Inc., 3550 EmbassyParkway, Akron, OH 44333 U.S.A. Phone (330)670-1234, FAX (330) 670-0874. Copyright 2013Babcox Media, Inc. All Rights Reserved. Periodicalpostage paid at Akron, OH 44333 and additionalmailing offices. POSTMASTER: Send addresschanges to BODYSHOP BUSINESS, P.O. Box13260, Akron, OH 44334-3912.

Member, BPA Worldwide

Guess the Car ....................................................................................4NASCAR Performance ......................................................................18Industry Update ..............................................................................20Tech Tips ......................................................................................22Product Showcase............................................................................64NEW! The Shop ............................................................................68

The Best Idea I Ever HadTop collision repair experts reveal the ideas that took theirbusinesses to the next level.

ON THE COVER

26

32

68

14

FEATURESTECHNICAL

Bonding TimeFollowing automakers’ recommended repair procedures whenusing adhesives is critical to consumer safety and quality repairs.

51 MSO/CONSOLIDATION GUIDECONSOLIDATION

What’s Your Exit Strategy? ................................................................53Sell your business on your own terms. SHOP PROFILE

The Doctor Is In................................................................................58Global Collision treats its customers like patients.VIEW FROM AN MSOEight Stores and Counting ................................................................62Eight-store collision owners Ron and Dan Nagy recount theirgrowing pains and the lessons they learned from them.

SHOP TALK

DEPARTMENTS

10

Editor’s NotesGen Xers and Gen Yers are light-years apart.

Publisher’s PerspectiveA full slate of engaging editorial awaits you in 2013.

Clark’s CornerGuns and “dart” gave industry veteran Mark Clarksome early lessons.

Web Presence ManagementResolve to market your business better in 2013.

NEW!

Guessthe Car

4 January 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 Jan. 31.

*Only one winner willbe selected. Chances ofwinning are dependentupon the number ofcorrect entriesreceived. Employees ofBabcox, industrymanufacturers andBSB advertisers are noteligible to enter.

Allen Ott, manager, Foster Chevrolet

Cadillac Collision Center, Sandusky, Ohio

Super B = (Dodge) Super Bee#118

Reader Contest! Win $50!

#116

WINNER!

Trailblazer = (Chevy) Trailblazer

#117

SOLVED!

See the February 2013 issue for

winner of Guess the Car #117.

My brother, Danny, is 23 anddefined as a “Millenial,” or Genera-tion Yer. I’m 41 and part of Genera-tion X. He came over my house touse my VCR to convert my parents’old family VHS tapes to DVD, whichwas going to be his Christmas pres-ent to them. I was rooting around ina closet looking for an old remote(don’t ask what it might have beendoing in the closet; I don’t know) andrealized I needed a flashlight.

I reemerged in the living room andsaid, “I need a flashlight” and start-ing pawing through the drawer

where last Iremembered putting

my big, black, Cbattery-poweredMaglite.

“Hey,” Dannysaid. “Did youknow there’s an

app now that

can turn your cell phone into a flash-light?” He then proceeded, after acouple taps on his phone, to beam abright light out of the top of it.

I looked at him like he had threeheads, but I didn’t want to totallyburst his bubble.

“That’s really cool, but I think I’llstick to my trusty Maglite,” I said,lifting the behemoth that could dou-ble as a weapon above my head foradded effect.

And then it occurred to me: mybrother represents the next wave ofcustomers who will come into yourshop. He thinks there’s an app foreverything. What if you don’t havean app where he can check on thestatus of his car or contact you at thescene of an accident? What if youdon’t have a way for him to requestan estimate online? It’s likely he’llpass you up.

What if a 23-year-old technicianstruts into your shop to start his firstday of work? Do you have an envi-ronment that will challenge andengage him? One where he’s

encouraged to solve problems andlook for “better ways” to do

things rather than do things theold way “just because?” Ifyou haven’t yet thoughtabout this, it’s high timeyou do.

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,Hank Nunn, Carl Wilson

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.

An incident happened the other day between me and my brother thatwas one of the clearest generation-defining moments I’ve everexperienced.

Seeing the Light

Jason Stahl, Editor

Email comments to [email protected]

2013, Here We Come

In the publishing business, it’s impera-tive that we plan out a year in advance.That gives us the ability to have the besteditorial available for you from the mostknowledgeable sources. Of course, we alsoneed to have the flexibility to add in perti-nent stories on issues that crop up

throughout the year. We all knowin this business and economy

that there will be lots ofchanges and hot topics dur-ing the year.

You can count on BodyShopBusiness to be on the sceneand have the most up-to-dateinformation to help you runyour business. That’s why we

have someone at all major in-dustry events and regular-

ly attend theCollision Industry

Conference(CIC). If you’relooking forup-to-date information,visit us onthe Web at

BodyShopBusiness.com or sign up for ournewsletter. In addition, all previous contentfrom past issues is available free of chargeon the website. We feel it is our job to bethe best resource possible for our readers.We make it our mission to constantly bringyou the latest products, procedures andtrends in our industry.

This year, we have a jam-packed lineupcovering everything from cycle time to succession planning and everything in between. Technical articles will cover sub-jects like: curing technologies, hybrid mate-rial construction, radar sensing and, ofcourse, waterborne/low-VOC updates. Ifyou need to know about it, you can counton us to have the information you need.Whether you’re a single store owner or amultiple shop operator, you’ll find relevantand productive information on our pages.

However you choose to get your infor-mation – magazine, Web or enewsletter –we have you covered. If you have a partic-ular subject you would like to read moreabout, just drop Jason Stahl or myself anote and we can research it for a future arti-cle. Thanks for being a loyal reader, andhave a great 2013!

Publisher’sPerspective

S. Scott Shriber, Publisher

Email comments to [email protected]

The New Year is upon us, and if you read my December column, I’m sure you haveall done your planning and are working at attaining the goals that you have set foryourselves and your businesses. That is no small task, and if you have alreadydone it, my hat is off to you. If not, there is still time to look at what you want to do

and make a plan. As the ad says, “Just Do It.”

Guns and ‘Dart’

“Tempus fugit” is Latin for timeflies, and as I write this first 25th-year anniversary column, it cer-tainly seems so.

In the Beginning » My auto body careerbegan in 1970 when I opened a paint, bodyand equipment (PBE) jobber store with mydad. In 1986, I began speaking about autobody topics to manufacturer, jobber andshop personnel (mostly to anyone whowould listen to me!). In 1988, I wrote myfirst article for BodyShop Business. I’m cer-tain neither the magazine nor I knew Iwould still be at it in 2013. It continues tobe a great ride.

Industry Issues » Some industry issuestoday were present in 1970: insurance com-pany influence, color match, paint andmaterial costs, safe repairs, clean paintwork and even cycle time (although wedidn’t all call the time the car spent in theshop by that name). Many of my original“Paint Shop” columns were about gettingdeliverable paint work on the first try.

I remember being at a national paintcompany’s school in 1970. Eating dinnerthe night before the class began, I spottedanother guy wearing the paint companylogo and we struck up a conversation. Hewas from way down South and had a realdrawl. I asked him what the biggest paintproblem was in his market. He said it was“dart.” I was an Iowa boy and didn’t un-derstand how darts played into collision re-pair. Was this like an English pub game?From both my puzzled expression and myverbal “Huh?” he repeated the issue wasdart. Seeing that I still wasn’t getting it, hepointed at the floor and said again, “Like

on the ground – dart!” “Aha, you meandirt,” I replied. “Yes,” he said, “dart.” Andsure enough, controlling the dirt in thepaint finish was a problem in 1970 and con-tinues to be one in 2013. Moving more airpast waterborne finishes to drive out thewater also moves more dirt around thebooth cabin. As always, careful prep makesfor clean paint work.

Safe Repairs » Safe repairs for both thevehicles and the technicians are still criticalissues today, too. In the early 1970s, Iattended the Kansas Jack School in theremote (and “dry”) town of McPherson,Kan. (I was, and continue to be, a big pro-ponent of industry education. You don’tknow what you don’t know. Attend someclasses and find out!) I was the only jobberthere and spent a rewarding week learningabout accurate and fast structural repair.

Early on the second morning of class, LarryBooker, who ownedKansas Jack, cameinto class wearingthe local cowboyduds – beltbuckle thesize of a quartcan lid, pearlsnaps on hisshirt, embroi-dered arrowsaround hispants pock-ets andfancyboots. Ashe walkedup the aislebetween

10 January 2013 | BodyShop Business

Clark’sCorner By Mark Clark

the class tables, you could see hehad a chrome-plated, pearl-han-dled Colt 1911 .45 automatic stuckin the back of his pants. My class-mates and I looked alarmingly ateach other. I hadn’t thought tobring a gun to frame school!

After welcoming everyone andthanking them for their business,Booker drew the gun and told ushe had brought it in to make animportant point. When a pullingchain breaks while stretched at 10 tons of force, the broken linkmoves faster than the slug from a.45. His point was that youshould always cover a pullingchain with a blanket, moving pador burlap bag so when it breaks,the blanket will catch the flyingchain. I took his advice to heartand even today nag the techs tocover their tensioned chainswhenever I see one uncovered.

Paint and Materials » Paint andmaterial costs remain a concernwith many shops 43 years later as well.

There are several ways to meas-ure paint and material expendi-tures. Two of the most common aredollars per month per tech, and asa percentage of shop sales.

In today’s business environ-ment, I use $1,000 per tech permonth as an easy benchmark forwhat the shop spends to buypaint and materials from a jobber.Remember to count everyone whotouches the car in that head count:the wash person, the painter’shelper, etc. Anyone who has ahands-on role in repair counts to-ward the total dollars. Part-timepeople are counted as a percent-age of a 40-hour work week. Forexample, using my math, a shopthat has 9.5 techs should spend

about $9,500 per month on paintand materials.

Another way to look at paintand materials is as a percentage ofshop sales (before any taxes). I be-lieve that paint and material costsshould run between 5 to 7 percentof shop sales; using 6 percent as amiddle value, a shop doing about$160,000 per month in total pro-duction should spend about $9,600per month to complete all vehicles.

Make sure of two things: (1) onlypurchases that are truly paint andmaterial should be counted (nobooth filters, tools, equipment orsafety gear) and (2) to make appro-priate money on the paint and ma-terials expenditures, the shop mustsell about 9 percent of sales inpaint and materials on the RO.This means adding refinish laborhours until the 9 to 10 percentbilling level is achieved.

While the percentages haven’tchanged dramatically since I beganin our industry, the dollar valuessure have. When I started in 1970, apint of acrylic lacquer color costthe shop $2.15. Today, a pint ofbasecoat color costs the shop about$70! Tempus fugit!

Congratulations » Each monththroughout 2013, I’ll reminisce alittle about how our industry hasstayed the same and how it haschanged over my long tenure.We’re a unique segment of theAmerican economy, and I’m stillpleased to be part of it. Congratula-tions to you as well for being a keyingredient in keeping the nation’sfleet rolling attractively and safelyforward! BSB

Mark R. Clark is theowner of ProfessionalPBE Systems in Waterloo, Iowa; he’s awell-known industryspeaker and consult-ant and is celebratinghis 25th year as a con-

tributing editor to BodyShop Business.

»| Clark’s Corner |«


Web PresenceManagement

At this point, New Year’s has comeand gone and you’ve made yourresolutions. You know, those prom-ises you make to yourself to make

positive differences in your life and oth-ers’…promises you make now as you con-sider a fresh start…promises you usuallybreak by now!

I hope that one of your resolutions was tomarket your business and bring more workto your door.

If you’re reading this, the prediction thatthe world would end proved once again to bepremature (remember Y2K?). So, since lifehas gone on, I’m going to share four thingsrelated to your web presence that you shouldresolve to accomplish during 2013.

Freshen Up Your Website » When’s thelast time you took a look at your website?What’s the copyright date at the bottom (ifyou have one, and you should)? Does it stillsay you’ve been in business for X years,which was true years ago when youlaunched your website but now you’ve actu-ally been in business for Y years?

Search engines will reward you for freshcontent and pick up on the slightest changeyou make to the site. Regularly updatingyour site shows search engines that yourbusiness is alive, viable and worthy ofranking.

If your site is five years old or more, youshould probably look at redesigning it. Yourwebsite is your online lobby. Having saidthat, maybe your lobby area hasn’t been up-dated lately either, but I’ll leave that topic forother people to write about. Conduct a searchon Google, Yahoo and Bing using this infor-mation: “auto body [INSERT YOUR TOWNAND STATE’s TWO-LETTER ABBREVIA-TION].” Skip past the sponsored listings and

map pointer listings and look for what areknown as the “organic” search results. Isyour shop on page one? Two? If not, youshould resolve to have an SEO expert dosome work on your site. Contact me for more information.

Build a Mobile Version of Your Website »Generation Y (those folks under 30 years ofage) is now the largest generation on theplanet. And in case you haven’t noticed, theydo everything on their phones. So, a mobileversion of your website is in order, somethingthat’s optimized for the size of a small screen.(This was the topic of my August 2012 col-umn titled, “Going Mobile With Your Web-site”). Connect with a reputable firm thatunderstands how to do this correctly. Thiswill enhance your chances of getting Gen Yvehicles to fix. It’s worth taking the time andspending a few bucks to do it!

Measure Your Online Results » If youaren’t getting reports on your online per-formance, it’s way past time to do so. Any-thing worth doing is worth measuring –and that holds true for your Web presence.And the best part is that these reports arefree! If your website developer/hostingservice is charging you for reports, firethem. It takes about one minute tops toinsert Google Analytics coding into a web-site and about 10 minutes to create aGoogle account if you don’t already haveone, so there should be no excuses why adeveloper can’t set this up for you. If theycomplain, ask yourself why. Is it that theydon’t want you to know how poorly thesite is performing?

Facebook reports through its Insight sys-tem. After you’ve gotten 30-plus “Likes,”you can start viewing these reports. On

By Mark Claypool


Resolve to Market Your Business More in 2013

these reports, you’re looking forpeople “Talking About This,” mean-ing they’re liking things you’veposted, commenting on them orsharing them on their wall. You cansee how many “Likes” you haveand the total number of people yourfollowers are friends with. That’show your Facebook page can go viral: getting your followers to par-ticipate in your posts.

Participate In Social Media » Is your business on Facebook?Google+? Twitter? It should be.Ninety-seven percent of Genera-tion Y is, and a large percentageof the rest of us are, too. Socialmedia is about branding, and nowit’s also about ranking betterthrough Google+.

This doesn’t mean just creatingaccounts and posting from time totime. This means actively promot-

ing your accounts, getting “Likes,”“Followers” and “Circles.” This alsomeans posting the kind of contentregularly that gets people partici-pating, commenting and sharing. Ifyou don’t have the time to do this,then outsource it to someone whocan do it for you. Contact me if youhave questions.

Keep Your Resolutions » Don’t letthese resolutions fall into thebottomless pit of broken and forgot-ten ones. Your business deserves bet-ter than that, and so do you andyour employees! Make 2013 a yearof online marketing action! BSB

BSB Contributing Editor Mark Claypoolhas worked in the fields of workforce de-velopment, business/education partner-ships, apprenticeships and Web presencemanagement for 30 years. He’s CEO ofOptima Automotive (www.optimaauto-

mot iv e . c om) ,which provideswebsite design,deve lopment ,search engine o p t i m i z a t i o n(SEO) servicesand social mediam a n a g e m e n tservices. He’s also

the Director of Business Development forMetro Paint Supplies in Chicago. Clay-pool’s work history includes VP of VeriFacts Automotive, founder of Men-tors At Work (now a division of Veri-Facts), executive director of the I-CAREducation Foundation and the Na-tional Auto Body Council (NABC), co-founder of the Collision IndustryFoundation and national director of de-velopment for SkillsUSA. Claypoolserved, on a volunteer basis, as theSkillsUSA World Team Leader for theWorldSkills Championships.

»|Web Presence |«


Track Talk

For 2012 NASCAR Whelen All-American Series nationalchampion Lee Pulliam, beinglocked into the starting fieldfor the Late Model race at the2013 UNOH Battle at theBeach is the opportunity of theyoung racer’s lifetime.

“For me as a driver, theopportunity to go to Daytonais a really big deal,” Pulliamsaid. “This is probably going tobe my only opportunity to runat Daytona, so it’s going to be abig deal for a lot of us.”

Pulliam, a Semora, N.C.,native, will be among many ofNASCAR’s up-and-comingstars getting a chance to com-pete at the legendary DaytonaInternational Speedway duringSpeedweeks 2013.

The bright lights of the“World Center of Racing” willshine on the stars of NASCAR’sregional and touring series, asDaytona InternationalSpeedway hosts the inau-gural UNOH Battle at theBeach Feb. 18-19, 2013.

The two days of racingwill be headlined by threenon-points special events –the NASCAR K&N ProSeries, NASCAR WhelenModified tours, and theLate Model division of theNASCAR Whelen All-American Series.

Joining Pulliam at theevent will be many ofNASCAR’s up-and-comingstars, including: NASCARK&N Pro Series East cham-pion Kyle Larson; 17-year-old Dylan Kwasniewski, the

youngest K&N Pro Series WestChampion in history; ChaseElliott, son of two-timeDaytona 500 champion BillElliott; and Joe Gibbs Racingdevelopmental driver DarrellWallace, Jr.

“This is all about the stars of tomorrow vying for glory at Daytona InternationalSpeedway,” said GeorgeSilbermann, NASCAR vicepresident of regional andtouring series. “During twodays and nights of intensecompetition, fans will be ableto see today’s aces of shorttrack racing and some greatyoung talent.”

Racers will compete on a .4-mile oval track on the famedSuperstretch of DaytonaInternational Speedway. Theultimate prize? A piece ofthrowback hardware.

Inaugural “Battle at the

B e a c h ”trophiesare repli-cas of thet r o p h ybestowedu p o ni n f a -m o u sthrottle-stomperF o n t yFlock forwinningon theDaytona beach circuit in 1954.

“I always like old trophiesand the history of NASCARand where it comes from andwhat it began as,” saidPulliam, who lists DaleEarnhardt, Sr. as his racinginspiration. “I think that's animportant part of this sport. Tosee that trophy being a replicaof one of the first ones givenout, that's really neat. It wouldbe pretty sweet to take thatthing home.”

With the addition of theBattle, Daytona InternationalSpeedway is the first track tofeature every level of NASCAR-sanctioned racing at its facility,as the short-track teams jointhe three national NASCARSeries and the Grand-AmSeries at the famed speedway.

“It's our first foray into short-track racing,” said DaytonaInternational Speedway Presi-dent Joie Chitwood. “Nowwe've got this new two-day

event on Monday andTuesday of race week, andwe're really excited.”

Tickets for the UNOHBattle at the Beach, alongwith all other Speedweeks2013 events, can be pur-chased online at www.daytonainternationalspeedway.com or by calling (800) PITSHOP.

Stay up to speed on the latest news by follow-ing hashtags #NASCAR, #DAYTONA500 and#NASCARBattle.

By Kimberly Hyde,NASCAR

NASCAR Short Track Aces toLight Up Daytona

The inaugural 2013 UNOH Battle at the Beach will be the destination for fans to

get a glimpse of NASCAR’s stars of tomorrow.

Back to the future: NASCAR’s next generation of drivers will

compete for 1954 trophy replicas at the Battle at the Beach.

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

By Jason Stahl

More than 100top collisionrepair shopowners were

educated on businessstrategies and industrytrends at the Sherwin-Williams A-Plus VisionConference Dec. 6-7 inPalm Springs, Calif.

What Is Success? »Elainna Sachire of SquareOne Systems kickedthings off by asking,“What is success?”

“It’s what you do withyour ability, and howyou use your talent,” shesaid. “And when youclearly define it at the be-ginning, all parties are

more likely to work to-ward the same goal.”

Sachire also outlinedthe three “P’s” of success:

� Purpose� Passion� Performance

State of the CapitalMarkets » Rex Green ofBB&T Capital Marketswas up next, offering aglimpse into the invest-ment in the growth ofmulti-shop operators(MSOs) over the last fiveyears. BB&T was the ad-viser for four of the last sixdeals that involved 20 ormore collision facility loca-tions: Service King, TheBoyd Group (Gerber Colli-sion & Glass), True2Formand CARSTAR.

Green characterizedthe collision industry as a“star perfomer” over thelast few years, openingthe eyes of Wall Streetand large equity groups.A couple reasons for that,he said, was an increasein miles driven and newcars sold.

“To have a firm likeCarlyle invest in collisionis very rare and interest-ing,” said Green.

Green called the broad-er automotive aftermar-ket an “absolute winner”from an investor stand-point over the last 10years, although he admit-ted it has been a “littletired” over the last six tonine months.

The second wave ofconsolidation in the colli-sion industry, Greensaid, is being driven by

industry dynamics andinvestor appetite. Hesaid the difference be-tween this wave and thefirst wave, which oc-curred in the late 1990s,is that insurance compa-nies are now fully en-gaged, and their ownstrategic objectives arenow in sync with thebenefits of consolidation.

“It’s the same idea to-day as it was then: todrive more volume anddrive down cost. But in-surers didn’t play thatgame back then the waythey are now,” said Green.“Insurers are now focusedon cost more. Fifteen yearsago, it was just on a

IndustryUpdate


Sherwin-Williams A-Plus Vision GroupConference Focuseson Trends, KPIs

(Counterclockwise from top):(Left to right) Dave Dewalt,Steve Feltovich and Lee Rushfield questions from the crowd;Rex Green of BB&T CapitalMarkets; Troy Neuerburg,manager of marketing businessservices for Sherwin-WilliamsAutomotive Finishes; TomHablitzel, president of Sherwin-Williams Automotive Finishes;Elainna Sachire of Square OneSystems.

Continued on pg. 42

We may not have flying carsyet, but not long ago, thecapabilities of newer carswas the stuff of science

fiction writers. Now you’re seeingvehicles with collision avoidance, nav-igation, parking assistance and manymore sophisticated systems. Of course,all these electronics vary from maketo make.

About the only sure thing in thecollision repair business these daysis that OE information is critical torepair a vehicle to ensure it conformsto safety, fit, function and appearance.Here is an excerpt of OE repair in-formation from Chrysler on its parkassist system in the 2011 Chrysler300 V6-3.6L.

Service Information » Always referto ALLDATA Collision for safety pro-cedures, identification of material types,recommended refinish materials, removaland installation procedures. Alwaysrefer to the manufacturer for questionsrelating to applicable or non-applicablewarranty repair information.

Park Assist Module — Removal1. Disconnect and isolate the bat-

tery negative cable.2. Remove the inner trim panel

from the right quarter panel to accessthe park assist module (1), which islocated just behind the right rearwheel well.

3. Remove the push-pin type re-tainers (1) that secure the park assistmodule to the inner panel (Figure 1).

4. Remove the module from thevehicle.

Park Assist Module —Installation

1. Position the park assist module(1) to the right inner panel, at therear of the vehicle (Figure 1).

2. Install the push-pin type re-tainers (3) (Figure 1).

3. Connect the body wire harnessconnectors (2) to the module con-nector receptacles (Figure 1).

4. Install the trim onto the rightquarter inner panel.

5. Connect the negative batterycable.

Park Assist Sensor — Removal1. Disconnect and isolate the bat-

tery negative cable.2. Remove rear fascia.3. Unsnap the Park Assist Sensor

from the retaining housing and re-move from the fascia (Figure 2).

Park Assist Sensor —Installation

1. Position the Park Assist Sensorover the retaining housing and firmlysnap into the housing in the rearfascia.

2. Install the rear fascia.3. Connect the battery negative

cable.

Park Assist System — Testingand Inspection, Component Tests(Excerpted as an example only)

WARNING: To avoid serious orfatal injury on vehicles equippedwith airbags, disable the Supple-mental Restraint System (SRS) beforeattempting any steering wheel, steer-ing column, airbag, seat belt ten-

sioner, impact sensor or instrumentpanel component diagnosis or serv-ice. Disconnect and isolate the bat-tery negative (ground) cable, thenwait two minutes for the systemcapacitor to discharge before per-forming further diagnosis or service.This is the only sure way to disablethe SRS. Failure to take the properprecautions could result in acciden-tal airbag deployment.

NOTE: The presence of jackham-mers, large trucks and other vibra-tions in the vicinity of the vehiclecould impact the performance ofthe system.

The following textual messagesmay appear in the Electronic VehicleInformation Center (EVIC):

TechTipsChrysler Park Assist SystemService and Repair

By Dan Espersen and Jeff Webster


1. Service Park Assist – If a servicepark assist textual message appearsin the EVIC display, the system mayhave a hard fault, and further in-vestigation may be needed.

2. Clean Park Assist Sensors – Ifa clean park assist sensors textualmessage appears in the EVIC display,be certain to confirm the following:

� The rear bumper is free of ice,snow, mud or other obstructionsthat will prevent the system fromoperating properly.

� The park assist system is self-correcting; verify that the area ofthe rear bumper where the sensorsare located is not blocked by ice,snow, mud or other obstructions. Ifthe area is blocked, remove the block-age, shift the transmission selectorlever into reverse and verify themessage is no longer present in theEVIC display. The system may alsobe corrected when the vehicle isdriven at a speed greater than 14kph (8 mph).

3. Service Park Assist Sensors –If a service park assist sensors textualmessage appears in the EVIC display,a sensor or the sensor wiring maybe damaged, and further investiga-tion may be needed.

4. Park Assist Off – If a parkassist OFF textual message appearsin the EVIC display, the system maybe manually cut-off. BSB

Dan Espersen is ALLDATA’s seniorcollision program manager, holds anAA degree in automotive technology,and has 46 years of experience in theautomotive industry, 19 in collision.

© 2013 ALLDATA LLC. All rights reserved. All technical information, imagesand specifications are from ALLDATACollision S3500. ALLDATA is a registeredtrademark and ALLDATA CollisionS3500 is a mark of ALLDATA LLC.

Chrysler and Chrysler 300 are registeredtrademarks of Chrysler Group LLC. Allother marks are the property of their respective holders.

»|Tech Tips |«


COVER STORY

The Best IdeaI Ever Had

By Jason Stahl

Top collision repairexperts reveal the

ideas that took theirbusinesses to the

next level.

My greatest idea was to becomea farmer and plant the seeds to

change my shop’s culture. When I got here, it was very bad.

Out of 15 employees, only one sur-vived. I went through several peopleuntil I handpicked a team that couldunderstand that we were a team. Butfor me to affect change, I had tocome up with a way of doing it.

I seek knowledge constantly. Atany one time, I’m reading three tofour different books. So the way Iaffected change was to grab articlesfrom BodyShop Business and readthem to my guys at morning meet-ings. Sometimes I would give themcopies and tell them to read themwhen they got the chance. I wouldn’tbring it up again for three to four

months, then I would ask them whatthey thought about the article. Theywould typically reply, “Oh, I forgotto read it.” And then I would givethem a week to read it so we couldthen meet and talk about it.

After I started planting theseseeds, the crop blossomed withideas. And now I have them askingme for information. I never get toread the hard copy of BodyShopBusiness anymore because it dis-appears off my desk. I have themreading everything, and they’renow telling me (as opposed to metelling them) what will or won’twork. They’re developing theirown culture. I empowered themto run the shop, and now it’s veryefficient.

COVER STORY » Best Idea

www.bodyshopbusiness.com 27

Gary WanoExecutive Vice President

G.W. and Son Auto Body

Oklahoma City, Okla.

Jim ShreveManager

Waikem Collision Center

Massillon, Ohio

Listening to the Industry

Becoming a Farmer

My best idea ever was to listen tothe industry.

From a business model standpoint,the auto body industry, for the mostpart, has vested itself in DRPs. Oncethe good ol’ boy network turned intoa viable, measurable referral source,a lot of us bought into that and beganusing it. But now we’re increasinglyseeing the insurers accumulating datathat gives them the upper hand andallows them to know what’s goingon in our businesses and then convinceus to do things differently than wenormally would.

As we began to expand our busi-ness, we were going down thatsame path. We were reaching outto as many insurers as we couldto build more relationships andincrease volume. But the more Ilistened to shop owners who werepart of that business model, themore I heard the truth: that DRPswere a necessary evil.

So we began looking at ways todivest ourselves from that arena.And that was the best decision weever made.

Ron NagyPresident

Nagy’s CollisionRepair Specialists

Doylestown, Ohio

Opening a SecondLocation

The greatest idea I ever had wasto open a second location. We

met at a small coffee shop and de-cided to run with it. The idea camefrom being involved in the industryand having a hunch that multi-loca-tion shops might be the future. Wesat down and put a plan togetherthat we thought was thorough. Wenow have eight locations and welove what we’re doing.

The greatest idea I ever had wasto implement a scheduling system

geared around our true capacity.That’s something I find a lot of shopsstill don’t do. It has been extremelyhelpful to us in that it has helped usmanage our workflow and get awayfrom the “everything in on Monday,out of Friday” scenario. When we’retainted by what we know, then wedon’t believe that people will bringtheir vehicles in on Thursday or Fri-day for repairs. But we quickly foundout that if there is a method to themadness, people will do whateveryou ask them to do.

Brad ZaraOwner

Zara’s Collision

Springfield, Ill.

Scheduling byTrue Capacity

Going Legal

The best idea I ever had was to takemy business back and keep it from

going down the trail of bankruptcy.And that was the day I decided to golegal. I had to gain knowledge so Iwouldn’t get blown out of the water,plus I had to find a great attorney and



a consultant because I didn’t have allthe answers. It literally saved my busi-ness when I decided to fight back. AllI had to do was look at my numbers toknow I was in trouble, and I refusedto be a good man who was forced todo bad things in order to make a profit.Cutting corners was not an option forme. I recommend that shops stand upto insurers, but whether they go legalor not is their choice. They need to tellinsurers that we are the repair profes-sionals and we know how to fix cars,and they sell insurance. Please pay usproperly and reimburse our customersproperly to have their cars fixed backto pre-loss condition.

Morning Meeting

The thing that has worked the bestfor me was starting a release meet-

ing every morning with all of ouremployees. I think it really does helpmake the day go better with every-body being on the same page whenyou walk out the door to go to workin the morning. We’ve been doing itfor about two years. Before that, it al-ways seemed like somebody had tobe running around and be the “walk-ing boss.” We just talk it out andtouch on every car that’s here andwhat stage of the process it’s in. Thatway, everyone knows the parts shouldbe here today for this vehicle so itcan move to this stage, this one iscoming over from the body shop tothe paint shop so my paint shop willbe looking for it, this one will be com-ing out of the paint booth so I knowI’ll need to be looking for it to put ittogether, etc. It keeps someone fromhaving to run around all day and telleverybody what’s going on.

Ray GunderOwner

Gunder’s Auto Center

Lakeland, Fla.

Lane GriffinVice President of Operations

Laney’s Collision Center

El Dorado, Ark.

Buying P & MCalculating Software

Scheduling bySeverity



Jonathan KazaryOwner

Kenwall Autobody

Linden, N.J.

Jim PatrickCollision Repair Manager

Lang’s Chevrolet

Beavercreek, Ohio

The best idea I ever had was scheduling by the amountof damage or severity: light hits, medium hits and

heavy hits. You get more production that way becauseyou’ve got the right person assigned to the job. If I havea heavy-hit guy who’s hanging a bumper, he’s notworking at his full potential. He could be making memore money working on a frame rack. Then I have thefast-track guys who can take those little jobs like fixing abumper and run it right on through to the paint shopand out the door so we can get two- to three-day turn-arounds. That allows the heavy-hit guys to spend moretime on the heavy hits. We found in the past that if youdidn’t keep a guy on, say, a 50-hour job, the job seemedto die. Now that we schedule by severity, they seem tostay on those jobs a lot better.

Purchasing paint and materials calculating softwarewas the best thing I ever did. I got it a few months

ago, and now I get $50 to $500 more per estimate depending how big the job is. Instead of getting paid,say, $250 for paint and materials, I’m now getting$350. Or instead of $750, I’m getting $1,250. All the in-surance companies are paying it except one. I try totell every body shop I know about it because not manyof them are using it. And it’s only $300 per year, andone job will cover that. The insurance adjusters whocome in to my shop used to say they never heard of it,then they would call up their managers and theywould end up paying. One insurer even let me put ina 10 percent markup! It’s really made a big differencein my profitability. BSB

Following theautomakers’

recommended repairprocedures when usingadhesives is critical toconsumers’ safety and

the completion of aquality repair.

By Mitch Becker

Business decisions have to be made every day in the collision repair in-dustry, including decisions on how to repair today’s vehicles or whatto repair in them. That particular repair decision can be tough, con-sidering that the repair instructions can sometimes be hard to find.

Hopefully, nobody is intentionally repairing vehicles incorrectly. I thinkwhat happens more often is that sometimes, when decisions are made, wedon’t see the big picture or are not correctly informed when it comes tovehicle repairs.

OEM Recommendations » Some ofthese poor decisions based on incorrectinformation occur when working withadhesives in repairs.

Many vehicle manufacturers are us-ing adhesives in the factory and haverecommended procedures for repairs.Many have started to use adhesivesto adhere the roofs of many vehicles.Some weld the roof at the factory, butthe repair calls for adhesives to beused with either adhesives only, rivetbonding, weld bonding or spot welds

in the corners with adhesives. Whichprocedure does a shop follow? Does ashop replace the adhesive or not?Should it use adhesive instead of weld-ing? Is weld bonding best? These ques-tions must be answered in order forthe shop to make the correct decision.

First, how does the OEM want thevehicle repaired? This considerationis always No. 1. Second, does the shophave the proper equipment and train-ing? Keeping up with a rapidly chang-ing industry can be expensive. Third,

TECHNICAL


TimeBonding

why should a shop keep up with theseprocedures? It takes time and training.Is it worth it? I commonly hear, “I’vebeen doing it this way for years andhaven’t had any problems, so whyshould I change?”

These are not easy questions to an-swer without some good backgroundinformation. I believe that if a personis going to make a decision, they needthe “why” something is needed orused. Armed with this information, aperson can make a sound decisionthat will be in everyone’s best interests.

Daunting Challenges» Automakers have beenfacing some dauntingchallenges. How do youmake a safe, lightweight,strong, comfortable, elec-tronically advanced,powerful, fuel efficientgreen vehicle that looksgood, costs little to man-ufacture and will main-tain its resale value?Sounds simple enough,but I don’t build them.They’re trying to thinkof new ways to meetthese demands, and oneof those ways is through adhesives.

Adhesives used for vehicle con-struction are multi-purpose productsthat perform a variety of functions.Here are some of those functions:

Vehicle Stiffness or Rigidity. Steelstoday are lighter and stronger than inyears past. This strength also leads tosteels being more brittle, which can bea problem in areas where there is highstress. This high stress can cause metalfatigue. Adhesives minimize movementby using more surface area for thebonding of metal. A spot weld or plugweld may only be 8 millimeters in di-ameter, but adhesives are bondingmuch larger surface areas. They spreadthe force over a larger area and reducestress on one point. They also addstrength to areas required for crashsafety in this same way. Good exampleswould be the occupant compartmenton Chrysler or Ford through weld

TECHNICAL » Bonding Time


I-CAR to Introduce Enhanced AdhesiveBonding Course with Live Demos in April 2013

Although the processes used for adhesive bonding haven’t changed sig-

nificantly in recent years, repair facilities need up-to-date training to

properly make the adhesive bonding repairs recommended for many of

today’s vehicles.

The I-CAR Adhesive Bonding course (ADH01) provides current and rele-

vant information necessary to help ensure collision repair professionals are

trained on how to achieve quality repairs. The Adhesive Bonding course pro-

vides detailed information about the processes used in collision repair situ-

ations and will be introduced in April 2013 with enhancements and newly

introduced live demonstrations.

Incorporating live demonstrations provides students the opportunity to

experience firsthand how to properly prepare parts and use adhesive mate-

rials. The “Live Demo”

portions of the course

will simulate adhesive

bonding procedures

using two-part

adhesives and will pres-

ent the steps for an

adhesive that is applied

to bare metal, as well as

the steps for an adhesive

that requires a primed

mating surface.

During the course,

students will learn about

the main types of adhe-

sives used for collision

repairs (epoxy-, acrylic-

and urethane-based), differences between materials, characteristics and

what is required when working with them.

The course explains that each type of adhesive has specific work and

handling time, bond line and clamping considerations, and cure time rec-

ommendations. Other course details include considerations around

knowing when to follow the instructions provided by the vehicle maker,

and when to follow recommendations from the adhesive maker. The typi-

cal recommendation is to follow the instructions provided by the vehicle

maker if the product being used is labeled by the vehicle maker. If the

vehicle maker recommends the use of a product brand, follow those

product instructions.

Using adhesives for repairs includes adhesive bonding, weld bonding and

rivet bonding. The course provides an understanding of how the types of

weld bonding and rivets used for rivet bonding are important for making the

proper repairs. There are also specific considerations for using adhesives in

aluminum repairs.

Considerations for part removal and cleaning for one- and two-part adhe-

sive bonding repairs, as well as preparation for part attachment and factors

that can impact successful attachment, are provided in the course.

For more details on Adhesive Bonding (ADH01), visit www.i-car.com.

bonding, and the use of adhesives forstructural glass for many years now.

Corrosion Protection. Vehicles todayare built to go the distance. With someachieving 200,000 miles relatively easily,adhesives are a major contributor totheir longevity and resale value. Weldshave been notorious for corrosion is-sues. Adhesives help seal and possibly

limit the number of welds required.Consumers are also keeping their ve-hicles much longer than previous years,so making sure the repair holds upover the time the owner will have thevehicle is an important consideration.

Sound Deadening. Consumers wanta sound vehicle while driving or justclosing a door. Adhesives keep a lot of

the popping and noise levels down.Many people judge the airtight qualityof a vehicle by the way a door soundswhen closing. A thump is good versusa metal-sounding “ting!”

Hybrid Construction. Not to beconfused with hybrid-electric vehicles,hybrid construction refers to the bring-ing together of many different strengthsof steels, plastics, glass or other buildingmaterials. For example, adhesives allowfor aluminum panels to be used onsteel structures. This allows for manydifferent materials to be used togetherto meet all requirements.

Cold Fusion. Many metals used to-day require STRSW welders or arerecommended to not be welded duringrepairs. These are mostly ultra highstrength steels that come under namessuch as boron alloyed steel. This canalso hold true with aluminum outerpanels bonding to steel. Using adhe-sives in place and in conjunction withitems such as rivets will bond thesemetals, thus maintaining their strengthand not creating corrosion hot spotsnormally associated with welding.

Basic Guidelines » So what can ashop do? Here are some guidelines:



4 Common Failures

1Preparation. Many adhesives

require bare metal for bonding;

others require that primer be applied

first. Knowing and following

directions is key.

2Plungers. Not leveling plungers

on epoxy-based products before

attaching the static mixing nozzles.

This will cause an uneven mix to

come through the tip, affecting all

adhesive properties.

3Incorrect nozzles. The use of

incorrect nozzles is also a source

for failures. Not all static-mixing

nozzles work the same.

4 Improper cleaning. The improper

cleaning of surfaces will also have

a direct effect on the adhesion prop-

erties of any product used.

1. Only use adhesives if the man-ufacturer has a written procedure thatsays to use them during repairs. If avehicle was welded from the factoryand there is no adhesive procedureprovided, then welding would be the

primary decision. If a business decisionis made to move forward, documentand follow adhesive manufacturers’procedures diligently. Many manu-facturers have guidelines or proceduresif a shop decides not to use adhesives,

one of which might be to increase thenumber of welds.

2. Training is a must. Training classesfrom adhesive vendors and I-CARhelp technicians use products correctly.Follow through and check that products

are being used correctly. Rivetbonding is being used in themanufacturing of more andmore vehicles and is beingincluded in the recommendedrepair procedures. Trainingin the use of the correct fas-teners and adhesives is criticalto the safety of vehicle occu-pants and the quality of therepair. This can be seen inthe procedures required byJaguar, BMW and Audi.

3. Equipment require-ments. Specialized SqueezeType Resistance Spot Welders(STRSW) may be required toweld bond steels. Thesewelders can be expensive.Depending on requirementsand frequency of use, doingresearch can save a shop timeand money. Self-piercing rivettools may be an option foraluminum intensive vehicles.

Type of Repair » The typeof repair will largely deter-mine what type of adhesiveis recommended. Types ofsubstrates being bonded formany hybrid construction ve-hicles will be a critical con-sideration as one adhesivemay not do it all. Cure timeand clamp time will also bea variable, as will bond linethickness. All of these con-siderations are discussed inmany different training pro-grams. Learning to identifywhen and where adhesivesare to be used and how touse them correctly is critical.

Most Common » The threemost common adhesives areacrylic-based, epoxy-basedand urethane-based. Acrylic-



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Audatex 3D IntelligentGraphics offer 360-degree rotation,unlimited zoom, color-coded parts andsubstrate materialsidentification, making itfast and easy to createan accurate estimate.

and epoxy-based products are two-part products, with the acrylic-basedhaving the fastest cure rate. Urethane-based products are generally one-partproducts that, in the past, had two-part options but were dropped due tothe expense and equipment cost.

Roof Replacement » Let’s look at aroof replacement on a new vehicle.Many roofs are being applied at thefactory using laser brazing, spot welds,weld bonding, rivet bonding and ad-hesive-only bonding using urethane-based adhesives. Some automakersactually recommend the exact sameproduct used in the windshield adhe-sive bonding. When using urethaneadhesive, primers are generally re-quired for adhesion. This is differentthan the epoxy-based products thatwill bond to bare metal. Urethane-based products are flexible as they’re

capable of bonding to many substratesincluding steels, aluminum, glass, com-posites and plastics. This flexibilitywith a longer wet or working timemake them an ideal product for roofskins. A manufacturer may adhere analuminum roof to a steel structure andeliminate concern over galvanic cor-rosion of two dissimilar metals.

The adhesive chosen for this typeof roof replacement must have theproperties needed to bond the materi-als. An adhesive used for glass andsteel is different than an adhesive usedfor aluminum and steel. With alu-minum, a non-conductive adhesivemay be required. Along with adhesivechoice, the surfaces must be properlyprepared. An epoxy primer is generallyrequired before the application of theadhesive manufacturer’s primer, whichwill give the proper adhesion and cor-rosion protection. Some procedures

also require mechanical fasteners suchas rivets or even a tack weld, whichare used to prevent peeling of the pan-els. This knowledge can make the dif-ference between a happy customer ora mad one with a warranty claim.

Avoid Bad Situations » Lack of train-ing and knowledge can put the besttechnician in a bad situation. Whenyour shop’s reputation is on the line,can you afford not to learn?

One last bit of advice: If your shopis not replacing adhesives when usedby the vehicle manufacturers, I hopeyou’re following the corrosion protec-tion procedures. Once the corrosionstarts, it spreads quickly. BSB

Mitch Becker is a technical instructor for ABRA Auto Body & Glass. He can be reached at (763) 585-6411 [email protected].


The recommended clamp time is different depending on the type and manufacturer of the product.


PowerPoint presentation.Now it’s here for real. Idon’t see that changing.When you outsourcesomething, I don’t think

it’s easy to reverse it.”Green continued,

“Consolidation will bedifferent now. Now thereis discipline. We have toshow investors the per-formance of an acquired

shop. A dozen years hasadded a great deal of ma-turity to this industry.”

Direct-repair programs(DRPs) continue to in-crease their influence,and their growth favorsMSOs, Green said. He cit-ed the statistic that, onaverage, large MSOshave 7.9 DRPs per store.

Not all is rosy with col-lision, however, Greenadmitted. Claim volumeis decreasing, cars aregetting safer, severity isincreasing and body shopsales decreased in 2012.

“We would like a littlemore growth,” said Green,“but [collision] is a consol-idating industry. The in-surance industry willdictate just how much and

how quickly the industrywill consolidate.”

On the topic of carsgetting safer, Green saidadvanced collision avoid-ance technology won’t af-fect claim volume foryears. “But it will affectconversations with in-vestors because we’rehearing about it a lot,” he admitted.

Buy vs. Build » Greenalso delved into the ac-quisition process.

“A single shop is rarelyvalued on its earningsbut rather against thecosts to a buyer of build-ing an alternative loca-tion in that market,” said Green.

Green said another

»| Industry Update |«


More than 100 collision repair owners attended the Sherwin-Williams A-Plus Vision Conference.

A-Plus continued from pg. 20

cost that could make building analternative location unattractive toan MSO is building goodwill,which he defined as the propensityfor customers to come back. Thisincludes insurance relationshipsand programs.

“As insurers enter into moreand more large-scale DRPs, thegoodwill of independents andsmall MSOs is disappearing,”said Green.

On a positive note, those shopslooking to sell right now are get-ting top dollar.

“There’s lots of money out therethat needs to be invested, whichmeans prices are high,” said Green.“If [private equity companies]don’t invest it, they lose it. That’swhy money is being invested in collision.”

Green sees three options for thesmall, single-store independents:

� Sell sooner or at an otherwiseadvantageous time

� Grow and sell later� Change your business model

to offset the lack of insurance-paycustomers

“Keep in mind, the last guystanding is not necessarily themost valuable,” he said.

The Future » What will the futurebring? Green says the logic for hav-ing national collision providers isstrong because national brands addcustomer awareness on top of DRPpositioning, which drives revenue.Plus, scale allows:

� Superior systems� Superior purchasing� Spending on consumer

marketing� Better customer experience

and satisfaction� Insurer benefit from national

presence as costs go down andKPIs go up

“Consumers have proven thatthey assign value to nationalbrands and the consistent servicethey imply,” Green said.

In 10 years, Green predicts that

two to four national chains willshare 25 to 50 percent of the mar-ket, 20- to 50-unit chains willspring up in different regions, andthere will be only 10,000 to 15,000independents left. Large MSOs willexpand in all regions, and inde-pendents and small MSOs willwork harder for less revenue.

Green predicted MSOs will soonpop up in Washington, D.C., andVirginia; they want to penetrate theNortheast, but he said they don’tknow how to do that yet.

Competitive Landscape » MattOhrnstein of Symphony Advisorsgave attendees a view of the current


www.bodyshopbusiness.com 43Circle 43 for Reader Service

collision industry compet-itive landscape, telling thecrowd of mostly single-store owners, “You have ahorse in the race. You maybe a little behind, butthere’s no reason you can’tbe in the race.”

He listed the many fac-tors working againstbody shops today:

� Aging vehicles� Higher fuel prices� Higher insurance de-

ductibles� Increasingly sophisti-

cated vehicle technology� Cashouts and unre-

ported claims� Higher equipment

and training costsHe also listed insurers’

concerns:� Earnings pressure

� Increasing competition� Performance-based

environment� Desire to “own” the

customer� Downsizing/right-

sizing DRPs� Securing long-term

quality� Repair capacity� ConsolidationRegarding State Farm’s

controversial PartsTraderparts procurement pro-gram, Ohrnstein had adistinctly different takethan some collision re-pairers who are against it.

“State Farm has 20 per-cent market share. It’s notsmart to walk away fromthem,” he said.

Speaking generallyabout insurers, he said,

“They don’t want to putyou out of business –they need you.” Headded, “If insurers wantyou to do something, doit. Because if you don’t,five guys down thestreet will.”

Ohrnstein said that in-surers, just like bodyshops, are driven by eco-nomics. Shops that havea lot of cars coming inare using price to getthose cars.

“All things beingequal, MSOs lead withprice – reduced laborrate, parts price, dollarsgoing back to the carrierif their cycle time exceedstheir promise, etc.” saidOhrnstein. “If you get anextra carrier that brings



Matt Ohrnstein of SymphonyAdvisors.

20 cars to your shop andyour gross margin dropsfrom 44 percent to 40 per-cent, think of what dropsto the bottom line. Nine-ty-five percent of shopswill elect not to take thishit because they thinkthey’ll make less money,but I would argue thatgetting more carsthrough without increas-ing your fixed costs is better.”

As Ohrnstein sees it,collision repair facilitiesneed the following thingsto survive and thrive today:

� Scale� Management� Capital� RelationshipsWhat is the competi-

tion doing? Ohrnstein hiton several things:

� Focusing on selectpreferred relationships

� Developing self-man-

aged relationships� Giving significant

discounts for volume� Concentrating geo-

graphically in single and

multi-markets� Integrating systems

and processes� Leveling supply

chain to support performance

� Implementing leanprocesses

� Developing SOPs� Leveraging technology� Embracing alterna-

tive parts usage

Honda ProFirst Program » Gary Ledouxof American Honda Mo-tor Company informedthe group of the au-tomaker’s new ProFirstbody shop recognitionprogram.

“Honda vehicles arebecoming more sophisti-cated,” said Ledoux.



Marcy Tieger of Symphony Advisors.

“We’ve partnered with I-CAR topromote the proper repair of vehicles.”

Criteria for the ProFirst programare:

� Use of CollisionLink at leastfour times per month

� Achieving I-CAR Gold Classstatus

� Someone at the shop has to com-plete the Honda Acura I-CAR class

Those shops that meet all the cri-teria will receive a handsome dis-play plaque, and bothdealer-owned and independentshops are eligible. Also, there is nocost to participate in the program.

Ledoux also said that Honda ve-hicle owners would be receiving aletter educating them on the pro-gram, and there was also going tobe a social media campaign along

with service reminder mailings.Brochures will also be available toshops and dealers to hand out.

According to Ledoux, within thefirst seven weeks of launching theprogram, more than 600 shops regis-tered and more than 100 qualified.

State of the Industry » RaymondChew of CCC Information Servicesoffered some interesting statisticsthat gave everyone a view of howthe industry fared in 2012. Some ofthe stats he cited were:

� Percentage of shops reportinglower sales vs. same period lastyear increased – the mild winterhurt

� Forty percent of claims in-volved vehicles aged 7 years orolder – the highest in 15 years

� $2,586 = average severity in thefirst half of 2012

� The 18-34 age group holds a 13percent share of the new auto reg-istration market; people aged 50and older hold a 62 percent share

� Forty percent of insurance car-riers will soon adopt predictive analytics

Roundtable » The day’s eventswere capped off with a roundtablediscussion involving lean guruSteve Feltovich, and Sherwin-Williams managers of businessconsulting services Lee Rush andDave Dewalt. All told, these ex-perts touted 91 years of experiencein collision repair.

The experts answered pre-sub-mitted questions from the audi-ence. One question was, “How canyou reduce cycle time as a non-DRP shop?”

“I only focus on things I canchange,” said Rush. “Is your blue-print 100 percent accurate? Eliminat-ing supplements is very difficult.”

Asked what the best cycle timewas that they had ever seen, Dewaltsaid he had once seen 8.9 days non-drivable at Sterling. As far as besttouch time, the trio said the best theyhad ever seen was 5 hours per day.



Michael Bradshaw of K&M Collision in Hickory,N.C., has filed a lawsuit against Nationwideon behalf of his customer, a Nationwide poli-cyholder. The suit alleges that Nationwide re-

fused to pay for “reasonable and necessary” parts,procedures and materials.The total amount sought inthe lawsuit is $2,956.98 pluslegal fees and costs.

A customer authorizedK&M to proceed with the re-pairer’s recommended re-pair activities and signeddocumentation authorizingBradshaw to act on his be-half in filing a lawsuit.

The claim includes denialof procedures including test-drive, removal of moldingadhesive from painted pan-els, tint color, finish sand andbuff and others.

“We value our customersand work hard to ensuretheir repairs are done prop-erly, thoroughly and in atimely manner,” said Brad-shaw. “It’s unfortunate thatsuch legal activities have be-come necessary. Consumersrely upon insurers to bethere in their time of need

and when they need them most, and when they fail tokeep their promise, who can blame the consumer for be-coming upset? Our efforts will be to illustrate to the courtthe insurer’s intentional breach of contract, unfair and de-ceptive trade practices and their acting in bad faith.”



NYSACTA President Speaks on School Tragedy

Mike Orso, president of the New York State Auto Collision Technicians Association (NYSACTA),

issued the following statement on the tragedy at Sandy Hook Elementary School:

On behalf of the New York auto body community, I would like to extend heartfelt thoughts of

condolence and deepest sorrow over the tragic event of Friday, Dec. 14, 2012, in Newtown, Conn.

I think I can speak on behalf of the entire industry that these people, our customers, friends, family

and neighbors have endured and witnessed life’s ultimate fear. We can only imagine in our own way the

unbearable grief if faced with the same horror.

As the news spreads, a day will not pass that we won’t find a connection by way of a friend, family

member or acquaintance of someone lost in this tragedy, adding more perspective.

While listening to reports Friday and every day as caring parents, grandparents and humans, we all

are affected and wipe away tears. Let us not forget how grateful we are to the heroes among them that

day who saved many more lives.

I know our friends in the Connecticut auto body community who have always put the well-being of

their customers ahead of any daily activity. I know they too are hurting, and to them we offer our

thoughts and prayers in the ability to heal. We know they too will struggle as they watch friends around

them fight back tears and grieve.

As Americans, we have experienced too many tragic days. Our parents struggled with tragedy, we

have endured tragedy and so will our children. Certain days will forever be etched in our minds; Dec. 7,

1941; Nov. 22, 1963; Sept. 11, 2001. Maybe it’s the day we lost a loved one or our best friend. I know no

words can put Dec.14, 2012 in perspective or make it go away.

It’s my hope we can help each other honor these lost angels, to somehow help each other to do the

next required thing. Know that our thoughts and prayers are with the people of Newtown: to those who

are gone who see no more evil and to those who are left behind to hurt and grieve.

North Carolina Shop Sues Nationwide


AkzoNobel has announcedthe sale of its North Ameri-can Decorative Paints busi-ness to PPG for $1.05 billion.

In 2011, the North American Decora-tive Paints business had revenues of$1.5 billion, around 7 percent of AkzoNobel’s total 2011 revenue.

AkzoNobel continues to have astrong presence in North Americathrough its Performance Coatingsand Specialty Chemicals businesses,with combined 2011 revenues ofmore than $2.7 billion and close to5,000 employees.

The company made the decisionto divest Decorative Paints NorthAmerica following a successful four-year turnaround. AkzoNobel haschosen to focus its Decorative PaintsBusiness area on key markets in Eu-rope and its strong positions in highgrowth regions.

The cash proceeds of $875 mil-lion will be deployed to supportthe company’s strategy. This in-cludes investing in organicgrowth for AkzoNobel and reduc-ing net debt. More details on AkzoNobel’s priorities will be

disclosed during a “strategy up-date” on Feb. 20, 2013.

“Over the past four years, theteam has done a great job in turningthe North American DecorativePaints business around,” said TonBüchner, CEO of AkzoNobel. “Weare convinced that Decorative Paintscan get better returns from our lead-ing positions in Europe and highgrowth markets. I am pleased thatwe have found a respected compa-ny to take over the business. Thisagreement is a good outcome for all stakeholders.”

“This acquisition continues the ac-celerated pace of our business port-folio transformation through furtherexpansion of our coatings business-es,” said Charles E. Bunch, chairmanand CEO of PPG. “It is also an at-tractive way to significantly increaseour scale in the North Americanpaint market.”



CorporateAkzoNobel SellsU.S. Decorative Paints Business to PPG

The PPG Industries Foundation has

awarded the Collision Repair Edu-

cation Foundation a $20,000 grant

that will provide named post-secondary

collision student scholarships. The

scholarships will be part of the Educa-

tion Foundation’s spring 2013 offerings,

valued at more than $300,000, and will

greatly assist collision students facing

financial barriers.

“PPG is privileged to take an active

role in supporting the industry’s

future professionals through these

scholarships,” said Domenic Brusco,

PPG Automotive Refinish senior

manager, industry relations, and Col-

lision Repair Education Foundation

Board of Trustees member. “By pro-

viding collision repair students with

support for the best technical educa-

tion possible, we are giving collision

repair businesses a chance to hire

well-trained students who can be

productive, efficient and capable

employees from day one of the job.

PPG is happy to offer these opportu-

nities and continue its strong rela-

tionship with the Collision Repair

Education Foundation.”

Added Collision Repair Education

Foundation Executive Director Clark

Plucinski, “PPG Industries has sup-

ported the Collision Repair Education

Foundation since its 1991 inception,

and only through the industry’s active

participation can our organization

provide worthwhile support to the

future professionals of the industry.

PPG has continued to meet and

exceed that challenge. I thank PPG for

its continued support, and we look

forward to making a positive impact

with students this spring through

these scholarships.”


Circle 71 for Reader Servicewww.bodyshopbusiness.com 49


PPG Awards $20,000 to Collision Repair Education Foundation

On Dec. 13, a Florida judge ruled

that Ray Gunder of Gunder’s Auto

Center Inc., and Paul Hawks of

Bernie’s Paint & Body Inc., both of

Lakeland, Fla., do have legal standing

on behalf of customers who granted

them Power of Attorney and denied a

motion to dismiss six lawsuits filed

against State Farm by Gunder and one

filed against Progressive by Hawks.

State Farm argued that the six law-

suits Gunder has filed against them

should be dismissed on the grounds

that he did not have standing based on

the Power of Attorney granted by his

customers. Progressive’s legal counsel

was also present in court and used the

same argument in a suit brought

against them by Hawks.

“I feel strongly that the court made

the correct decision,” said attorney

Brent Geohagan, who represented both

Gunder and Hawks. “While this is but

one more in a long line of victories for

Ray and his customers that is

warranted and well-deserved, it’s a

significant victory for the entire colli-

sion repair industry in Florida and

beyond…and the fight goes on and will

as long as need be.”

Added Gunder, “I was extremely proud

while I sat watching and listening to

Brent’s passion, preparation and expert-

ise as he defeated each of the insurer’s

arguments. This is a huge deal as once

again State Farm’s efforts to avoid dis-

closure of their internal business prac-

tices have been unsuccessful.”



Florida Judge Denies Motion toDismiss Collision Repairers’ SuitsAgainst State Farm, Progressive



determining the value of a businessis profitability, it’s critical that a shop’srecords accurately reflect the financialhealth of the company. Records thatare well-maintained over a period ofyears (rather than months) are helpfulbecause they can reveal trends andexplain aberrations.

Poorly maintained financialrecords are especially problematicfor business owners who takecash from the business “off thebooks” to lower their tax burden.If there is no documentation of

your true earnings, and what youclaimed as income in your tax re-

By Marcy Tieger

Irecently asked a friend in hislate 50s about his plans for re-tirement. He told me he expect-ed to die at his desk – and he

was serious. He gave no thoughtto a time when he wouldn’t be inhis business.

Part of being a proactive businessowner requires that you look a fewmoves down the chessboard – whetherthat means keeping the business inthe family, turning it over to a man-agement team so you can golf more,or selling the business.

At this time of unprecedented in-dustry consolidation, many inde-pendent collision center owners are

selling their businesses. For any col-lision shop owner contemplating afuture sale, even years down theroad, there are a few things youshould think about now to get yourbusiness ready.

Need a Boat? » You’ve heard theold-school shop owner talk abouthow he used to handle business fi-nances, right? The story goes thatone front trouser pocket was for in-coming cash, and the other was foroutgoing expenses. Whatever wasleft over at the end of the monthwas “profit.”

Because one of the key factors in

turn under penalty of perjury waslower than your actual income fromthe business, it’s difficult to makethe case for a higher valuation basedon the “real” numbers in a saletransaction.

Similarly, many owners run per-sonal expenses (e.g. dry-cleaning,boats, ATVs) through the companyand call them “business expenses”on their business tax returns. Notonly is this potentially illegal (if nota legitimate business expense), butit may present downstream incometax exposure for the buyer of yourbusiness in the event of an auditafter a sale.

In addition, if you formed yourbusiness as an LLC or corporation,you created a separate legal entityto shield you from personal liability(protecting your house and savingsaccounts) in the event you were suedby, say, a vendor or customer. How-

In order to sell your business on your own terms, youhave to be proactive, get your house in order and makesure your financial records are shipshape.

What’s Your Exit Strategy?

MSO/CONSOLIDATIONMSO/CONSOLIDATION

MSO/CONSOLIDATION »Exit


ever, your legal protection may beerased if it can be shown that yourbusiness expenses and your per-sonal expenses are one in the same(commingled). This is called “pierc-ing the corporate veil.” In the eventof a possible sale, your legal entitystatus will be important becausecertain legal entities may give riseto double taxation.

Also, many buyers don’t pur-chase the real estate when theypurchase a business – they lease itback to the owner. Therefore, ifyou own the business and the realestate, the legal entity status thatyou operate under, and whetheryou commingle business operatingassets with your real estate, mayhave significant tax consequences.

The time to talk to your account-ant, tax professional and legal coun-sel is now – even if a sale may be afew years down the road. You may

Fix Auto: Entrepreneurial Spirit, Corporate Strength

For decades, the collision repair industry was largely composed of independentoperators, but over time the landscape has shifted to news of MSO acquisitions

and consolidation.For top performing independent operators who want to remain viable and aren’t

looking to sell, the future of the industry can be more than a little unsettling. Thegood news is opportunity abounds for a select few.

The Franchise Model AdvantageThe Fix Auto collision repair organization provides a solution for those marketleading, independent repairers by offering what is essentially the best of bothworlds. Members retain control over their businesses, while gaining access to a breadth of resources — beyond the scope of an individual shop — that maxi-mize performance and productivity while providing much needed visibility.

These assets include national representation with insurers, large-scale mar-keting campaigns, real-time access to KPIs, as well as the pooling of expertiseand data with other best-in class operators. Management tools provide feedbackthat allows Fix Auto franchisees to stay on top of the customer experience.

And to ensure the organization is capable of delivering operational performancesecond to none, Fix Auto is selective about the shops that are invited to join, onlyadding operators who have proven track records of success and who are commit-ted to excellence.

An Undeniable CombinationThe Fix Auto approach allows an independent body shop to stay true to its en-trepreneurial roots while leveraging strength in numbers, positioning its mem-bers to best meet the requirements of insurers and consumers. The approachmakes the organization unique, effective and undeniable in today’s competitivemarketplace.

be able to make adjustments in yourlegal structure now that afford youa more favorable treatment in afuture sale. Plus, cleaning up yourbooks and undertaking bookkeepingbest practices creates a much clearerfinancial picture in the event of asale – and may save you some griefin the event of an audit.

Get Your House in Order » Somebusiness owners struggle withwhether they should sink moneyinto the business when they thinkthey might sell it. Maybe that’s you?You know you want to sell, but youjust don’t know when. But let’s focuson what you do know: the conditionof your equipment, whether theparking lot needs to be repaved,whether the plumbing in the em-ployee bathroom is unreliable, andwhether the fence securing youryard is falling down.

Even if you own your real estateand plan to lease it back to a futurepurchaser of your business, the wayyour property, building and equip-ment are treated in the deal is notunlike the way total losses are calcu-lated. Just like the car owner doesn’tget “credit” for regular oil changesor headlights that go on and off, thereis a presumption that your space isin good working order and functionalas a body shop. You don’t get creditfor that – it’s expected. While a pur-chaser of your business will assumethey need to invest in new tradedress (e.g. paint colors, signage, designfeatures, etc.) to make your spacelook like one of theirs, they will alsoexpect that you maintained the prop-erty. If there is significant deferredmaintenance, you can expect it willbe a deal point – either you take careof it (at your cost) or the buyer deductsit from the purchase price.

Even with uncertainty about whenyou may exit the business, why notcreate the best possible first impres-sion for your customers and a pleas-ant workplace for your employeesin the interim? Remember, you’repaying for it anyway.

Due Diligence » After businessvaluation, the issues that dominatemost sellers’ thoughts are a com-patible business culture and inte-gration of the business. This becomesmost important when the seller plansto stay on in some capacity with theacquiring company, or where theseller does not intend to stay but islooking out for his or her employeeswho want to continue working withthe acquiring entity.

If you want to know how consol-idators or a regional player whomight view you as a great strategicadd-on treat the employees of newlyacquired companies, just ask. Moreoften than not, the express terms ofan acquisition deal will be subjectto a non-disclosure agreement. (Thisis why you often hear different num-bers about the purchase price in in-dustry deals – they’re a product ofhide-and-seek played by those in-the-know who do not want to breach

MSO/CONSOLIDATION » Exit Strategy

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the agreement and speculation bythose who actually know very lit-tle.) However, simply asking em-ployees or sellers who stay onwith a buyer about their experienceunder the new regime is fair game.

A potential seller who is con-templating a sale should considerattending local and national in-dustry events to find natural op-portunities to speak to sellers oremployees of selling companiesabout their integration in a post-acquisition environment. Betteryet, do it over time. Recognizethat a seller’s view three monthsafter an acquisition may be verydifferent 12 or 18 months downthe road. In many cases, sellerswill ask for employment contracts(customarily six to 12 months) forthemselves and/or key employeeswho will be staying with the ac-quiring company. It’s not uncom-

MSO/CONSOLIDATION »Exit


How Can Independent Store Owners Benefit from the CARSTAR MSO Network?

Any independent shop owner in the collision repair industry today knows thereare multiple challenges impacting their business. Their business is being

squeezed from seemingly every angle. We know the way this industry is going —the independent owner is essentially facing one of three decisions: 1. Stay put aloneand hope things improve. 2. Sell out to a consolidator group. 3. Join a network likeCARSTAR.

CARSTAR Auto Body Repair Experts understands and is ready to help. As NorthAmerica’s largest MSO network with more than 400 locations in 31 states and 10Canadian provinces, we offer a unique blend of corporate resources and a powerfulpartnership that helps independent owners build their businesses in an effective way.

The CARSTAR model is uniquely attractive to independent store owners.CARSTAR provides the resources, support, buying power, insurance relationshipsand management expertise needed to compete while allowing stores to retain theirownership, identity and independence. For vehicle owners, CARSTAR delivers na-tional scale, high-quality vehicle repairs, consistent and repeatable outcomes, andthe industry’s highest customer satisfaction ratings. Most repairs are backed by alimited five-year nationwide warranty. Insurance carriers increasingly choose towork with CARSTAR because our shops deliver top KPI performance and consistent,repeatable outcomes as well as excellent customer service for their clients.

How can independent store owners benefit from the CARSTAR MSO Network?Through our scale, standardized performance and operating procedures, high-qual-ity customer service, corporate insurance staff, regional service staff, standardizedreporting, national branding and marketing support, and training programs thatonly CARSTAR can offer! CARSTAR can open doors that are currently closed to independent operators. It’s the winning solution for more than 400 shop owners —and growing — across North America.

To learn more about becoming part of something bigger by joining CARSTAR AutoBody Repair Network, visit CARSTAR.com or call (888) 505-6815.

mon for those employees to leavefor personal reasons after the contractends, at the behest of the acquireror both. (Keep in mind that some-times, the reason for parting waysmay also be subject to a non-disclo-sure agreement.)

There are instances where sellersrefuse to even consider an offer froma potential buyer because of rumoror a perception (accurate or not) thatthe buyer will not take care of themor their employees. For this reason,it’s important to get informationabout culture and integration in ad-vance – before you’re approachedby, or prematurely eliminate, a po-tential suitor.

Time to Say “Goodbye” » The saleof a business does not always occurwhen or how business owners ex-pected. In many instances, ownerswho gave little thought to a sale areapproached by a potential buyerand suddenly, they’re in the game.In other instances, sales occur duringtimes of desperation, when busi-nesses are struggling.

It’s always possible to do a “back-

of-the-napkin” analysis of the valueof your business within a likelyrange, recognizing that there are amyriad of factors influencing the ac-tual offer. Many people mistakenlybelieve they’re sitting on a goldmine; sometimes they’re right, butmore often they’re wrong.

Experience shows that valuationis not what tells people it’s timeto sell; it’s what they feel in theirheart that speaks to them. Untilthat time comes for you, be realisticabout where your business is nowand where you want it to be, andplan ahead. If it’s not time to saygoodbye, look at how you canbuild up your business and pre-serve value. BSB

Marcy Tieger is a principal with theconsulting firm, Symphony AdvisorsLLC, which focuses on delivering strate-gic, marketing, operational and financialadvisory services to the automobile aftermarket parts and services supplychain and to automobile insurance phys-ical damage claims organizations. Shecan be reached at [email protected].

MSO/CONSOLIDATION » Exit Strategy

www.bodyshopbusiness.com 57Circle 57 for Reader ServiceCircle 74 for Reader Service

The time to talk to youraccountant, tax professionaland legal counsel is now

— even if a sale may be a few years

down the road.

SHOP PROFILE


By referring tocustomers as

“patients” andoffering them a

“Ford to Ferrari”experience, GlobalCollision sets itself

apart from thecompetition.

By Gina Kuzmick

Investment is key to any business,including collision. Colorado-basedGlobal Collision has found that in-vesting on many levels, from rela-

tionships with customers and staff to itsoperations/procedures, pays off big time.

Ford to Ferrari » As a certified repairfacility for multiple upscale auto manufac-turers, the eight-store operation strives tooffer its patrons what it calls a “Ford to Fer-rari” experience.

“You’re getting Ferrari-quality care whenyou come to our facilities, no matter whatyour make/model of vehicle,” says mar-keting director Liza Milijasevic.

After CEO George Lilley moved fromthe United Kingdom to the states in 2003,he opened the first Global Collision locationin Denver. Since then, the company has ex-panded to eight facilities across the state,making it the largest independently ownedmultiple-shop operator (MSO) in Colorado.

The “Ford to Ferrari” mentality is exem-plified through the shop’s standard operatingprocedures, which make the business seemless like a body shop and more like a spa.By referring to customers as “patients,” aswell as having Enterprise Rent-a-Car andmechanical and glass repair on-site, Global

Collision seeks to make the repair experience as painless as possible.

“You’re turning around disruptionand stress for many people, and you’ve

got to use empathy and have the convenienceand efficiency to get them back on track assoon as possible,” said Milijasevic.

Flow Line System » While Lilley was inthe U.K., he developed his own operatingprocedure called the “flow line system,”with the key theme of responsibility.

“There’s no way you can get a productionmanager to stand behind every technicianand make sure he’s putting clearcoat down;everyone has to be made accountable,”Lilley explained. “So, it’s a strict procedurewhere people are made accountable withregard to documentation, signing off on theactual repair, etc. They’re getting paid to dothe job right the first time. You can cut outsome middle management there, and clearlythat’s a good savings in expenditure.”

Before a repair, Global Collision detailsevery vehicle that enters its facilities. Thisallows the technicians to be able to identifydamage more quickly and accurately. Fromthere on out, the company designates a cus-tomer service representative (CSR) from itscall center to handle each customer. The

The Doctor

Is In

CSR also asks each customer howoften they would like to be updatedand their preferred method of contact:text, email or phone.

“We don’t have a lot of incomingcalls asking about the status of a vehiclebecause we’re very proactive,” saidLilley. “We have a golden rule in thecompany where we do not give a dateof completion unless we’re assuredthat the car is perfect.”

Lilley calls this a “right first timeapproach,” insisting that the shopis only as good as its last repair.Each location has a productionmeeting every morning to evaluateevery vehicle and discuss which“patients” can go home that day. Ifa car isn’t fixed correctly the firsttime, Global Collision will find

a more suitable technician to makerepairs.

“To rework a car means it’s notprofitable,” said Lilley. “If you haveto twitch the car again for rework asthe result of a neglectful approachby someone, that individual nevergets the opportunity to rectify thatcar again.

SHOP PROFILE » The Doctor Is In


ABRA Evolves with aChanging Industry…

In an industry experiencing contrac-tion over the years, Minnesota-based

ABRA Auto Body & Glass is creatingquite a stir. Their skyrocketing growthover the past 18 months and plans foraggressive national expansion in 2013has confirmed their position as one ofthe top multi-shop collision repairoperators in the country.

This is a full-tilt acquisition spree.During the course of 2012, ABRA Auto Body & Glass acquired its 16th repair center, welcomed seven new independently-owned franchises, and opened four newly-developed corporate centers. Nationally, ABRAnow operates 92 company-ownedrepair centers and 44 independently-owned franchises. They expect to continue boosting their presence inthe collision repair industry with additional acquisitions in existing andnew markets, expansion of franchiseoperations, and concentration on theirindustry-leading operating metrics.

ABRA is actively seeking newopportunities to acquire repair centersas part of its aggressive nationalgrowth plans in major markets. Inter-ested parties should contact ScottGerling, Vice President of CorporateDevelopment ([email protected] 763-585-6210).

For franchise opportunities in smalland midsize markets, contact MarkWahlin, Vice President of FranchiseDevelopment and Operations ([email protected] or 763-585-6315).

Founded in 1984, ABRA Auto Body& Glass employs more than 2,000 inits nationwide system and is a leadingprovider of vehicle repair servicesspecializing in collision repair, paint-less dent removal, and auto glassrepair and replacement.

“People can make good salaries inthis industry based on this ‘right firsttime’ approach, which people some-times don’t grasp. But after a periodof training, [that] approach is para-mount. These individuals have to beaware they’re working on high per-formance vehicles so there’s respect

for repairing a cus-tomer’s vehicle.”

Going with theFlow » To get cus-tomers back on theroad quickly, eachshop is set up witha paint booth in thecenter of the floor.

“It’s set up thatway so there aren’ta lot of cars that haveto be moved veryfar or around,” saidTerry Lake, opera-tions director. “It can

go from disassembly to repair to paintbooth, and then right to reassembly.”

This “flow circle” setup serves as awin-win for both Global Collision andits customers.

“Time is everything,” said Lake. “Ifyou save 10 minutes a car times 100cars a month times eight shops, that

makes your productivity go up higher,so you can get more cars out the doorand make more profit.”

Class Act » Another thing that makesGlobal Collision stand out is its nu-merous certifications to repair high-end vehicles. From Porsche to Bentley,the MSO strives to give these vehiclesthe highest quality care. And althoughthe average Joe can’t say he owns oneof these cars, Global Collision says itdoesn’t treat him or her any different.

“These high-end, high-profile brandsdemand the absolute highest levels oftraining and professionalism,” saidMilijasevic. “If we can deliver whatthose companies want, then we willbring the same kind of service and at-tention to detail to any vehicle.”

Ahead of the Curve » The decisionto repair high-end vehicles came afterclose examination of trends withinthe industry, such as the increasing


Circle 60 for Reader ServiceCircle 75 for Reader Service

(Above) A glimpse of theinspection and teardowndepartment of Global Collision’sBoulder, Colo., location. (Left) Apainter sprays StandoxStandoblue waterborne paint ontoa vehicle.

sophistication of materials used to manufacture cars.Jaguar was the first make that Global Collision took on,and that certification prepared the repair center to acceptother brands.

“Jaguar is one of the first cars that had a huge emphasison aluminum, but now aluminum is in almost everybrand of car,” said Milijasevic. “So the investment wemade with aluminum training and equipment and knowl-edge is paying off tenfold because we geared up for thatbefore anyone else.”

Hitting the Books » Lilley recognized the importance ofhaving a strong marketing presence so that potential cus-tomers would have Global Collision top-of-mind beforeneeding them. The business takes that idea to the nextlevel by printing its own custom magazine, Global CollisionMagazine, offering articles covering everything from winterdriving tips to technical information to accident dos anddon’ts. The first issue was released at the end of 2012.

“We’re trying to appeal to everyone, from a customerwho’s never had contact with us before to an insurancecompany partner whom we’ve known for 10 years,”said Milijasevic.

Recruiting Efforts » Lilley believes that the biggestchallenge confronting the industry is finding young peoplewilling to make collision a career. As one way to drawyoung talent, Global Collision purchases used tools andequipment for its technicians.

Looking Forward » Global Collision has opened a facilityevery year since 2003, and will continue growing. It’sawaiting certification from Nissan and Volkswagen. It stillsees opportunity to expand within Colorado, but in fiveyears, its expansion may venture beyond the state’s borders.

As long as investment persists, so will the company’sbusiness. “You’ve got to be prepared to invest. And ultimately,that will attract better technicians,” said Lilley. BSB




By Ron and Dan Nagy

As we mentioned in the coverstory of this month’s BodyShopBusiness (pg. 27), the greatestidea we ever had to catapult

our business to the next level was toopen a second location. We figuredthis might be the way the industrywas going, and we were right.

The third location came about whena dealer contacted us out of the blueand asked if we wanted to run a bodyshop at his location. The ensuing lo-cations were pursued by us.

With our recent growth in the lastsix years or so, I’ve been asked overand over, “How big are you guysgoing to get?” So I thought I wouldexplain why we expanded to eight lo-cations and didn’t stay as a smallfamily business.

My dad, Dave Nagy (or Pop as wecall him), started the business in 1973in Doylestown, Ohio, behind our house

62 January 2013 | BodyShop BusinessCircle 62 for Reader Service Circle 77 for Reader Service

MSO/CONSOLIDATION GUIDE

Stores & Counting

for the sake of convenience and cus-tomer service. He really understoodwhat it meant to take care of the cus-tomer. From there, the business grewand grew.

As my brother Dan and I took over,we had people driving miles and milesto come to Doylestown to have theircars, vans and trucks repaired.

In 2006, we decided to make it con-venient for the Wooster and surround-ing communities by opening a locationthere. A couple years later, we wereapproached by Kirk Spurgeon of Spur-geon Chevrolet (formally Red FerrisChevrolet), who wanted to partnerwith us and bring the Nagy’s processand culture into his building. Thatstarted a string of reactions from otherdealership owners and some inde-pendents, some of whom were readyto retire or just wanted to be part of abigger team.

Nagy’s process and culture is sim-ply the UCE (Ultimate CustomerExperience), which comprises all ofour policies, processes and docu-ments. Simplified, it’s the “customeris always first” culture. Dan and I,with the help of many of our staff,built a complete repair process withstandard operating procedures(SOPs) so that the repairs and qualitywould be the same as they werewhen Pop ran the store back in the

1970s and ‘80s. The SOPs are onepart of the UCE, which spells outthe “perfect repair” – from how wewant to answer the phones, to greet-ing people, to final billing paperwork.

From the metals and plastics to theelectronic controls, the vehicles havechanged dramatically. But one thing

we’ve remained consistent on is thecustomer service culture that Pop usedto jump-start the business. BSB

Ron and Dan Nagy are co-owners ofNagy’s Collision Repair Specialists. Theycan be reached at [email protected] [email protected].

MSO/CONSOLIDATION GUIDE » Eight Stores


ABRA Auto Body & Glass 59Aframe Spray Booths 48Airomax/U.S. Body Products 30Alloy Wheel Repair Specialists Inc. 60American Honda Motor Co. 17, 29Audatex 15, 39Automotive Mgmt Institute 60Automotive Service Equip 42BASF Corp. 11Bendpak 52Blackburn’s Hubcap & Wheels, Inc. 44Blair 49CARSTAR Franchise Systems 56Cebotech Inc. 62Certified Auto Parts Association 9Crash-writeR InsertDent Fix Equipment 23

DuPont Performance Coatings 5DV Systems 28Evercoat 3, 33Farecla Inc. 4Fix Auto USA 54Goffs Curtain Walls 16H & S Auto Shot Mfg Co. 36Herkules Equipment Corp. 55I-CAR 35Induction Innovations 12Innovative Tools & Technologies, Inc. 13Klean-Strip Automotive 21Malco Products 7Martech Services Co. 57Matrix System Automotive Finishes LLC 19Motor Guard Corp. 57PPG Industries Cover 2 -1

Pro Spot International Cover 3RBL Products 40, 47, 50, 61Rubber-Seal Products 45S.A.I.M.A. Of N. America 31SAAB Parts North America 46Scorpion Truck Bed Linings 49Shop-Pro Equipment 25Southern Polyurethanes 37Spanesi 24Steck Mfg. Co. 50Suburban Mfg. 62Tite Spot Welders 61Toyota Cover 4, 38TYC/Genera Corp. 41Zendex Tool Corporation 55

ADVERTISER INDEXCOMPANY NAME PG. # COMPANY NAME PG. # COMPANY NAME PG. #

Lessons Learned1. Don’t outrun your administration.

2. When you think you’re organized,

organize some more.

3. Many minds make better decisions.

4. Make sure you have at least some

DRPs or relationships so you have

work coming in from the start – even

if it’s slow.

5. Quality standards must be held very

high – no exceptions.

6. Communication, no matter how

painful, must be direct and timely.

7. Buy-in from all involved is paramount.

8. Get all the facts, not opinions, that

you possibly can before making

decisions.

9. Location, location, location.

10. The harder you work and the

more you know you can, the more

you can.

Lessons Learned, Mistakes and Brilliant Moves

Mistakes1. Not having DRPs or relationships set

up ahead of time.

2. Not communicating quickly and pre-

cisely on problems with processes or

personnel.

3. Not working smart enough.

4. Not having one of our people in a

decision-making position exemplify

our culture.

Brilliant Moves1. Asking questions of persons smarter

than myself – sometimes from outside

the industry.

2. Owning up to our mistakes.

3. Viciously defending our reputation.

4. Being born from parents who handed

down an amazing legacy (we had noth-

ing to do with this, but still…).

5. Getting involved with the community

(schools, Chamber of Commerce,

businesses and charities).

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of 10 pads. These aluminum oxide hand padsmeasure 6-by-9 inches and are washable and

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www.sia-USA.com


Custom WebsitesCollision Websites quicklycreates custom websitesfor collision repair shops.Services include search en-gine optimization (SEO),mobile site creation, socialmedia integration and esti-mate requests. Sign up to-day for a 14-day free trial.Collision Websiteswww.collisionwebsites.com


No-Sand PrimerUrethane Supply Company’s newBumper & Cladding Coat Adhe-sion Primer is an advanced, low-VOC, solvent-based primerdesigned to stick to problem plas-tics without sanding or scuffing.The primer is designed for easyrefinishing of new, unprimedOEM replacement bumpers. It’scompatible with all popular ure-thane and waterborne base-cleartopcoat systems and many singlestage products.Urethane Supply Companywww.urethanesupply.com


No Harm toOriginal FinishBumper Stripper is aunique formulationthat will not swell orattack most urethane.The viscous consisten-cy clings to thebumper without sag-ging. It’s designed tototally remove all refinish material butnot the original factory-baked finish. Dominion Sure Sealwww.dominionsureseal.com



»| Product Showcase |«Quick-ApplicationSealerPermasolid Spectro Sealer 5450 is apremium 2K high solid system thatcan be used as a wet-on-wet sealer,underhood color or as a flexible

sealer for plasticrepairs. Fast andeasy to apply,this low-VOCsealer deliversexcellent cover-age and asmooth finish.Spraying re-quires only 1.5coats with noflash-off timebetween coats.

This product is currently availablein black and white. Red, blue,green and yellow will be availablein 2013. All colors can be mixed to-gether to get an unlimited numberof colors, including shades of gray. Spies Heckerwww.spiesheckerUSA.com


Add Sparkle toFinishesPPG Automotive Refinish has sup-plemented its Ditzler Big Flakeproduct line with seven brilliantnew flakes: mini gold, mini silver,red, orange, blue, purple andgreen. The popular flakes, intend-ed for use with PPG’s VibranceCollection brand of custom colorsand special effect finishes, add in-tense color and sparkle to customcar, truck or motorcycle finishes. PPG Automotive Refinishwww.ppgrefinish.com


Plastic/OEMSurface PrimerDual Prime Select Shadeprimer surfacer is spe-cially formulated for ap-plication on plastic partsand OEM surfaces. It’s

ideal for sand-through areas and can be directly top coated withbasecoat/clearcoat systems. Dual Prime is available in three colors: MRS-7570 Tru-Black, MRS-7572 Medium Gray and MRS-7574 White.Medallion Refinish Systemswww.medallionrefinish.com


Ergonomic SanderAirVANTAGE sanders are ergonomically de-signed to deliver greater control, balance and

comfort. The motor generates up to .28 hp fora fast, efficient performance. They’re avail-able in a variety of models: non-vacuum,

central vacuum and self-generatingvacuum.

AirVANTAGE Toolswww.airvantagetools.com


Print Custom Images on TiresLAC’s Tire Printer usesinkjet technology to printin full color on a tire’ssidewall. The averageprinting speed is six toseven minutes for onesidewall, and printed images are durable for one year. LAC Corporationwww.laccorp.com



Work Gloves with Enhanced Traction3M’s Work Gloves utilize gripping material that pro-vides a 270 percent improvement in friction when usedas a two-part system with other Gripping Materialproducts. The enhanced traction results in reducedslippage and improved productivity with lessfatigue. In addition, these gloves are resistantto abrasion and punctures. 3Mwww.3M.com


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Body Shop Inventory & Web Softwareby Rossknecht Software www.rossknecht.com

A Windows® inventory system for BodyShops that also salvage vehicles or havenew/used parts to sell – vehicle and parts

inventory, invoicing, reports, instant sales totals,bar-code labels, digital pictures, electronic cata-log of body parts. NEW: Put your inventory on yourWebsite included.No monthly fees. $895 complete. Free Demo [email protected] phone 303-884-5315

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or view at:

Do you watch that new realityshow, “Duck Dynasty?”I’ve seen it a time or two, but

I’m not going to say I watch

it. The father on the show,

Phil, taught my mother

in high school back

when he was a

teacher.

Are you a Razor-backs fan?

Not this year. They

didn’t do well at all. I

don’t keep up with them

that much. It’s something to do

when there’s nothing else to do. If I

don’t watch the game, that’s okay.

How did you celebrate New Year’s? We had steak for dinner and were in bed

by 9:30. I was going to celebrate with a

duck hunt but it was raining. I

guess I’m getting old because

I didn’t want to get out there in

the rain. BSB

Skoal or Copenhagen?Copenhagen.

What is the most commonmisconception aboutArkansas?Probably that we’re backwoods,

down home and out of touch

with the real world. As a whole,

we’re really not behind on the

advancements in technology.

Are you proud that PGA golferJohn Daly is from Arkansas?That’s okay. I’m not really a big golfer.

I’ve never seen him around. We’re kind of

located in the middle of nowhere.

What’s with your camouflagedphone clip?That’s just me, man. I enjoy the outdoors.

Are a big-time hunter? I like to duck hunt a lot. We’ve had several

good duck hunting trips.

TheShop


Lane GriffinVice President of OperationsLaney’s Collision Center � El Dorado, Ark.

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