John Yoswick (148)
John Yoswick is an automotive freelance writer based in Portland, Oregon, who has been writing about the collision industry since 1988. He has a body shop in the family and is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).
He can be contacted by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
State Insurance Divisions Differ From One Another in Terms of Addressing Repairer Concerns
Written by John YoswickIt’s a common complaint among collision repairers: It’s not worth contacting the state insurance commissioner’s office because they don’t do anything about our complaints.
To view a PDF of this article please click HERE.
Yet in recent months, some state insurance commissioners have taken actions cheered by some shops, from radically changing their department’s focus, to issuing bulletins reminding insurers of state laws on steering or other shop-related activities.
What has led to these changes, and does it mean now is a good time for shops to reassess their interactions with state insurance regulators?
Some Success Stories
For decades, shops in many states have taken concerns about auto insurer practices to insurance divisions only quite often to be told, in essence, that such regulators are there to address consumer complaints about insurers, not business-to-business issues.
But even that mission isn’t being met well in some states. When John Doak took the helm of the Oklahoma Insurance Department earlier this year, he quickly announced he was reorganizing the department’s anti-fraud division to focus on investigating insurance company fraud against consumers, rather than the other way around.
CIC, Consultant, Seeking Views on Industry Repair Standards
Written by John YoswickThe skittishness among some in the industry about how formalized repair standards may be developed or implemented was evident during discussion at the most recent Collision Industry Conference (CIC).
To view a PDF of this article please click HERE.
At the meeting, the CIC-formed Repair Standards Advisory Committee offered an update on its work, including the hiring of a consultant to build a business case for the development and implementation of formalized standards.
Russ Thrall, publisher of CollisionWeek and a past CIC chairman and who co-chairs the advisory committee, said the goal of the consultant’s work is to present a report by November about what consensus exists within the industry about standards and a possible new organization to oversee the development and implementation of standards.
Thrall said that as of mid-July, the committee had raised $26,600 of the $60,000 it needs in sponsorships for the consultant’s work and the development of an industry forum on the topic in November. More than 50 percent of the 21 sponsors to date are collision repair businesses, 38 percent are suppliers and less than 5 percent are insurers.
Mike Condon, whose consulting firm has been hired by the committee, said he has conducted about 10 of the 40 interviews—about half with repairers and half with those in other segments of the industry—that he anticipates doing to prepare the report for the committee. That report, he said, will examine if there is support for the idea of a standard-setting body, and if so, how that body could be structured and funded. As part of the research, Condon also will examine standard-setting entities in other industries and in the collision repair industry in other countries.
State and Federal Governments Consider New Insurance Regulations
Written by John YoswickFrom California to Massachusetts, the judicial system and lawmakers are tackling related to the auto insurance that pays for much of the work collision repairers do. The federal government is also considering the role it should play in regulating insurers as well.
To view the full text of this article with photos please click HERE.
Here’s a wrap-up of some of the insurance-related news that will likely be of interest to shops.
Feds eye more insurance oversight. Federal legislation (HR 1943) that would partially repeal the McCarran-Ferguson exemption from antitrust regulations for insurers has been reintroduced into Congress by Reps. Peter DeFazio (D.-OR) and Louise Slaughter (D.-NY).
“No matter what political ideology, most can agree that insurance companies should play by the same rules as virtually every other industry in America,” DeFazio said.
A similar bill, which requires only that health insurers operate under antitrust laws, passed the House during the last Congress but was not acted upon in the Senate.
The Automotive Service Association (ASA) has supported such legislation, saying it is a step toward broader repeal of McCarran-Ferguson.
Shop Owners Share Frustrations Renegotiating Contracts with Information Providers
Written by John YoswickThe experiences of a number of shop owners around the country serve as a reminder to make sure you always understand the terms of any contract you are signing. Failure to read the fine print—or negotiate clauses for additional rights to end even something as seemingly innocuous as a software contract—have cost some shops tens of thousands of dollars.
To view the full text of this article with photos please click HERE.
A shop owner in California, for example, has been disappointed in the response he has received from one of the Big Three information providers to his requests over the past 18 months to renegotiate his software contract. The shop owner, who asked that his name and the provider’s not be used, said he purchased a complete package—hardware and software—from the provider, but realized shortly after he did so that he did not intend to the use the shop management module of the package.
“We’re not a large enough shop to benefit from the time I’d have into using it,” the shop owner said.
While he wants to continue using the company’s estimating system, as his shop has for more than 15 years, the information provider has refused to accept any changes to the 40-plus months that remain on the shop management module contract.
“I’ve never have even had the program turned on,” the shop owner said. “They already have a year-and-a-half of my money. I said they can keep the amount I’ve paid but just cancel it from there on. But they want it all. I know if I ran my business like that I would be out of business.”
Industry Trends and Changes in Future Vehicles at WIN Conference
Written by John YoswickCurrent industry trends—and a look ahead at the electric, fuel-efficient and Chinese vehicles that could be showing up in collision shops in the coming years—were the focus of one speaker’s presentation at the recent Women’s Industry Network (WIN) conference.
To view the full text of this article with photos please click HERE.
Greg Horn, vice president of industry relations for Mitchell International, told about 160 attendees at the WIN event in San Diego, that one positive trend for collision repairers had been the rebound through early this year in the total miles driven by U.S. motorists.
“But we’re starting to see the effect of gas prices impact the miles we drive,” Horn cautioned.
He said that MasterCard SpendingPulse, which tracks gas purchases at hundreds of U.S. locations, reported in early May that the 4-week average of retail gas demand had dropped for the sixth consecutive time.
“So we’re potentially in for a pretty significant impact as we get to early summer in the reduction of accidents and repairable cars,” Horn said.
He said insurer data indicated an uptick in claims in the third- and fourth-quarters of last year, boosted in part by some extensive hail and storm damage in several regions of the country.
‘2011 East Coast Resolution Forum’ Meets in NJ to Discuss Ongoing Efforts and Ideas
Written by John YoswickCollision repair associations leaders from around the country met in Secaucus, New Jersey, in March to share ideas and discuss state legislative or regulatory successes and efforts. The “2011 East Coast Resolution Forum,” an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASP-New Jersey’s NORTHEAST® 2011 trade show.
Here’s a round-up of some of the news and discussion from the meeting:
Efforts to regulate mobile repairers
Charles Bryant AASP-New Jersey said his group has been working for some time to get the New Jersey Motor Vehicle Commission to regulate repair businesses that are performing work on a mobile basis in violation, AASP-New Jersey contends, with the state’s shop licensing law. That law requires that repairs be made inside a building zoned for autobody repairs and that all paint work be done inside a booth or a room with a filtration system.
Mobile repair work, such as that done on a dealership lot, Bryant said, clearly falls outside these parameters. The Commission, however, had proposed bringing mobile repairers in under the shop licensing program. AASP-New Jersey opposed this action, showing the Commission published ads by mobile repairers indicating they were doing far more than minor cosmetic repairs and paint work.
Effort to Develop Collision Repair Standards Takes Another Step Forward
Written by John YoswickA Collision Industry Conference (CIC) committee hopes by April to have hired a consultant to help build a business case for a new organization that would oversee the development and implementation of formalized collision repair standards in the United States.
To view a PDF of this article please CLICK HERE.
Russ Thrall, co-chairman of the Repair Standards Advisory Committee, said at the CIC held in Secaucus, NJ in mid-March that several proposals from consultants are now being reviewed, and a decision is expected in April. If funding for the position can be raised, the consultant will be asked to issue a draft of the business case by the end of September.
For a number of years, an all-volunteer CIC committee has discussed and crafted some portions of a possible standard, which would address training, equipment and even repair procedures. A draft of the still in-process 100-page document can be viewed online (www.repairstandards.com).
Thrall has said the consultant is needed to work with the volunteer committee to conduct the interviews and research necessary to propose a structure and funding mechanism for the organization that would use a formal process to create and implement the standards. The consultant’s report would also outline the value such standards would offer various segments of the industry, and how the performance of the standards could be measured.
Recyclers, Repairers Look for Ways to Improve Their Business Interactions
Written by John YoswickMel Hunke said he’d like to eliminate the “wedge” between collision repairers and auto recyclers.
To view a PDF of this article please CLICK HERE.
“We used to work together really well,” Hunke said of the two industries. “But once insurers stopped paying for clean-up or repair time on recycled parts, they basically said, ‘You two fight it out.’ And we’ve been doing it ever since. That’s the wedge that was driven.”
Hunke, a former shop owner who now represents the Quality Replacement Parts (QRP), a coalition of auto recyclers in nine states, was speaking at the third “Recycled Parts Roundtable,” held in Las Vegas. The gatherings, originally organized by QRP but now open to anyone, bring together representatives from all segments of the industry to discuss and work to resolve issues related to recycled parts.
“We need to blow out the wedge and put our relationship, our core business-to-business process, back together in a way that benefits everyone,” Hunke said as he opened the most recent roundtable.
A Paint Complaint Doesn't Have to Mean an Unhappy Customer
Written by John Yoswick“The paint on the repaired panels does not match the rest of the car. The shop says it cannot be made to match. I find this impossible to believe.”
To view a PDF of this article please CLICK HERE.
These words, an actual comment written by a customer of a U.S. shop, are not exactly what you’d like to see on the comment cards or customer satisfaction indexing (CSI) reports you receive. That’s why it seemed surprising that the shop owner said he was actually pleased when his CSI provider faxed him a copy of the customer’s gripe.
“Yeah, of course, I always dread finding out that we blew it with a customer,” the shop owner, who asked that his name not be used, admits. “But on the other hand, I’m not there in the shop all day, every day, anymore. I might not have known that this woman left so unhappy with us. Because (our CSI provider) lets us know right away about negative comments, I was able to call this lady and let her know that I would be getting this taken care of for her.”
Ten Things to Consider When Designing a New Shop, Remodel, or Expansion Featured
Written by John YoswickAnyone who has worked in a shop for even just a matter of months can probably quickly list a half dozen or more things that work really well in that shop in terms of its physical design and layout—and a equal number of things they’d change about it if given the opportunity.
To view a PDF of this article please CLICK HERE.
Whether building a new shop from the ground-up, or preparing to expand or remodel an existing facility, here are 10 things to consider when mapping out your plans.
1. Think about the customer experience. As early in the process as possible, consider the entire design and layout from the perspective of how a customer will interact with it. Is the building situated on the site to maximize visibility and “curb appeal” from the street? Is it clear where a customer enters the property and where they are to park or leave their vehicle? Can they drop-off or pick-up their vehicle under cover or out of the elements? Is there adequate customer parking close to the office?
The office and customer areas often seem to be an afterthought in many shops where production space is considered paramount. But in addition to staff office space, consider including a quiet area for customers to wait with adequate furniture and amenities like a water cooler, television, customer-only restrooms, children’s play area or work space for those wanting use of a phone, computer or Internet access.
New CIC Committee to Focus on Shop Data’s Capture, Use, Sale, and Reports Featured
Written by John YoswickArizona shop owner Mike Quinn opened his first Collision Industry Conference (CIC) as chairman of the quarterly gathering, held in January in Palm Springs, CA, by asking outgoing I-CAR CEO John Edelen to introduce new I-CAR chair John Van Alstyne, who takes the helm of the training organization this month.
To view a PDF of this article please CLICK HERE.
Quinn followed Van Alstyne’s brief remarks by praising Edelen’s efforts at transitioning I-CAR over the past three years. “If I’m able to engage the industry as much as John Edelen has engaged the industry in the last several years, I’ll be successful as CIC chair,” Quinn said.
The first meeting of a new CIC chairman’s term is generally set aside as a “planning meeting,” one in which participants discuss the issues they’d like to see CIC address in the coming year or two, and form the committees to which those issues are assigned.
