Gene Crozat, owner of three G&C Auto Body shops in Northern California, has a recipe for success that he believes can make any collision repair shop more profitable. His secret ingredient is the use of independent contractors as technicians and painters. 

Gene Crozat, owner of three G&C Auto Body shops in Northern California, has a recipe for success that he believes can make any collision repair shop more profitable. And this unusual reception area welcomes customers - new and returning - with all the comforts of a cozy ski lodge.

Passers-by might easily mistake the G&C Auto Body Santa Rosa shop for a Hollywood mansion or a southwestern bed-and-breakfast.

Think about it. Who works harder - a person who is paid an hourly wage or a person whose wages depend on excellent performance? Independent contractors have an incentive that simply does not exist with employees, who earn a salary and are at the mercy of their employers if they wish to earn more

Contractors can choose their own work hours - often working more than less. Without the constraints of "9 to 5," a person can work when he is most efficient - some folks work better in the early morning and others are night owls and would rather use daylight hours for other activities.

Independent contractors stand to benefit in other ways as well. They can write off tools, trucks, gas, and other work expenses, lowering their income tax liability. As successful entrepreneurs, they should be able to earn a greater profit than they would as employees.

Working with independent contractors can be a touchy subject in terms of government regulations. The rules are very strict, but Crozat has done extensive research and has sorted out the requirements. A major issue is who has the right to control the work. At G&C, technicians and painters receive work as individual jobs, which they are free to accept or reject at their discretion.

Other characteristics which define independent contractor relationships in-clude the fact that they are hired on a job-by-job basis, they operate as a separate business; they offer their services to the general public, and they are hired to perform a special task with no on-going relationship or obligation by the hiring firm. If a contractor does not do the expected quality of work to ultimately satisfy the customer, there will simply be no more jobs forthcoming. No hiring, no firing.

Crozat's shops are available to the technicians and painters 24/7, so controlling a worker's hours is a non-issue. As long as they meet the terms of the contract (deadlines, quality of work, etc.), they can conduct their business as they see fit. Furthermore, as independent contractors, painters and technicians are free to work for other clients and at other facilities if they wish.

Owners further benefit because liability is based on payroll. The fewer employees, the less the cost of such things as Workers' Compensation and other types of insurance.

And turnover is almost non-existent. "Nobody is going to hire my guys away from me. They make a living and they get to keep it," Crozat explained.

The California Chamber of Commerce has published the Manager's Guide and Audit Reference (1994) to aid in defining the independent contractor relationship. Crozat recommends acquiring this publication as a starting point when considering converting to this kind of worker relationship. He is also available to help any owners who believe this strategy would work for their shops.

"The average shop is trying to make it on an eight-hour day. It's whole overhead is based on that business model. You can't make a profit that way. Going to a double shift drops overhead dramatically," points out Crozat. "This is totally compatible with the independent contractor model."

Keeping up with technology

"You can't do tomorrow's work with yesterday's tools." G&C Auto Body facilities are all well equipped.

With hundreds of cars a month, the paint booth must be a work horse. The Santa Rosa shop has five spray booths, custom designed by Golden West, for a third of the price of standard spray booths. The custom booths are heavier, six feet longer and four feet wider, with triple the lights. The booths have side drafts. Fans on either side of the booth suck the exhaust out, creating a calm over the car and a much cleaner job. G&C sprays PPG paint.

Shops are also equipped with Chief EZ liner frame racks, the Genesis Velocity II laser measuring system and Hunter alignment equipment.

With 75% of customers being women, Crozat takes pride in creating an ambiance where they can feel comfortable transacting business. With a high wooden ceiling, an oversize stone fireplace, sturdy wooden reception desk and soft colors, the reception area at the Petaluma shop more resembles a hotel lobby than a body shop.

A body shop customer might easily mistake the Santa Rosa shop for a plantation mansion or a bed-and-breakfast. The reception area has all the comforts of a cozy ski lodge.