Walter Danalevich (6)
Walter Danalevich, AAM, has owned Santa Barbara Auto Refinishing in Santa Barbara, California, since 1979. He enjoys sharing his shop management tips with other shop owners and would like to hear about yours. Contact him at
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See also his shop website: www.sbautobody.com
Business Financial Security Preventive Maintenance
Written by Walter DanalevichEarlier this year (Autobody News, February, 2011) I wrote a shop savings article (Credit Card Processing Fees—Dings, Dents, and Crashes at Your Bottom Line) for ABN readers warning about credit card host processing fees which could significantly ding their bottom lines. My February article pointed out that these fees can be very substantial for body shops.
To view the text of this article with photos please click HERE.
If you missed the article, you can read it along with my other columns in my column section www.autobodynews.com/columnists/danalevich-walter.html.
Now I would like to re-emphasize the importance of taking extreme caution with authorizing Credit Card hosting agreements and specifically their cancellation fees. A body shop owner contacted me to share his story involving a nightmarish experience pertaining to a cancellation fee he got sucked into compliments of his prior Merchant Credit Card processing Host.
This body shop owner read my ABN article and phoned me to express his frustration during the past five months as a result of his shop cancelling a merchant credit card host service. His shop had recently signed a service agreement, based on the credit card host’s friendly telemarketing sales pitch: “we will give you the lowest credit card processing fee rates on Earth.” Here’s what happened.
The shop’s bookkeeper was continuously aggravated by the credit card host’s customer service department. When she called with questions they were consistently tossed back and forth between service reps. None could provide adequate explanations of the reason for transaction fee deductions from their business checking account.
Total Loss Fees Are Profits to be Gained, Not Given Back
Written by Walter DanalevichAs an auto body shop owner for over 30 years, I understand total loss vehicles are a part our industry’s day to day business. With the addition of more and more electronic gadgets, gizmos, and the installation of additional air bags it is not unusual to have an insurance company choose to total a vehicle, and retain the auction salvage, rather than roll the dice on the possibility of a multi-thousand dollar supplement and being held responsible for other liability issues. This is usually the standard insurance game plan unless you come across a naive insurance appraiser who does not value his job.
To view the full text of this article please click HERE.
Recently our body shop in Santa Barbara, California, was involved in an insurance claim involving a customer’s 2005 limited edition Scion XB which accidentally ran into a shopping center wall while exiting a shopping mall parking structure. The driver must have experienced one heck of a distraction to cause so much damage to the right front of his vehicle.
Upon closer inspection we discovered the right front frame was kinked enough to require replacement of the frame rail. The engine would need to be removed to install the frame rail which resulted in additional labor placing the car in the total loss category.
While the appraiser was leaving our repair facility he commented his insurance company is very attracted to low mileage fuel-efficient compact vehicles such as this one. Later that day, I went out to the Scion and noticed there was a tag on the windshield stating the vehicle now belonged to the insurance company. I asked myself how this could be when the vehicle owner has not been notified or given information on his options of retaining the vehicle or accepting full retail value from his insurance company.
Is Your Parts Supplier Purchasing Policy a Benefit or an Expense?
Written by Walter DanalevichThis month let’s take a look at parts ordering considerations that will improve your bottom line. Think for a moment of all your part suppliers both OEM and aftermarket. Do you know what the return parts policy is from each supplier? You should if you want to maximize your business profits.
To view a PDF of this article please CLICK HERE.
What is their return policy on parts that do not fit? Will they reimburse you for full labor or just the part cost and leave you with a “catch you on the next one” policy?
Not too long ago, it was no “big deal” to return parts for credit months later. Some of us may even remember credits issued with certain part suppliers for returns where we did not even produce evidence in the form of an invoice. Well, times have changed considerably when ordering auto body parts. Today we have the option of ordering parts by the traditional voice phone communication or a variety of electronic options which include fax, text, digital and e-mail.
Business Liability Insurance: Review & Research Before You Renew!
Written by Walter DanalevichThis month, let’s take a look at Business Liability Insurance needs for operating a professional body shop with the goal of adding profit to your bottom line.
To view a PDF of this article please CLICK HERE.
Our auto body shop in Santa Barbara, California, after several years of patronage to a well-known business insurance provider, recently changed our business liability insurance carrier to another major player.
The results were a saving of about 33% from the previous year with similar coverage. Like most of us, I am guilty of getting too busy during the day-to-day operation of our business to review our insurance policies and their costs on a regular basis.
What motivated me to review my policy and getting new insurance quotes was an act of “overeagerness” from my insurance company to roll over my policy.
A few weeks before our policy expiration date, a large brown envelope arrived via special delivery at our office. On opening the envelope I discovered a binder containing our business insurance policy documents pertaining to the next policy term.
My first thoughts after opening the envelope were skeptical. In years past we never received a renewal policy before discussing our renewal intentions with the assigned insurance agent.
“It’s a Misunderstanding”—Insurance Appraiser Boot Camp Featured
Written by Walter DanalevichThose of us who are active in the auto body industry understand there is much skill involved negotiating with insurance company appraisers in arriving at an “acceptable” (profitable) repair bottom line.
To view a PDF of this article please CLICK HERE.
During my 30 year auto body career, I have written thousands of auto body repair estimates mastering the “the art” of negotiating with a variety of insurance appraisers. It’s only natural to have a preference of which insurance appraisers we welcome into our auto body shops. Commonly we find some insurance appraisers are consistently easier to work with and arrive at a profitable “bottom line.” Then there are those appraisers that make us feel as though they are paying for the repairs out of their own pockets.
Recently, our body shop in Santa Barbara, Calif., had an insurance claim where the issuance of the supplement was an experience I have never encountered in over thirty years of owning and managing a body shop.
Credit Card Processing Fees—Dings, Dents, and Crashes at Your Bottom Line Featured
Written by Walter DanalevichAs we all roll into the New Year with new personal, business, and profit projection goals, many of us are asking ourselves what business operating expenses we are able to reduce which would result in added profits to our bottom line? This is especially true during these tough economic times.
To view a PDF of this article please CLICK HERE.
Personally, I make it a practice at the conclusion of each calendar year to review our body shop’s financial reports by searching out unnecessary expenses. My objective is to reduce all wasteful expenses which have occurred during the day-to-day rush of conducting business.
