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Page 1 of 2 "Everything we do around here revolves around reducing
cost and cycle time," says John Rattan, age 52, founder and president
of The Body Shop, a three-location operation in the Dallas area that
grosses over $8 million annually. Rattan says that reducing cycle time
is more than just a way to higher profits. "It's about using technology
to turn an unpleasant experience, an auto accident, into as effortless
of a repair experience as possible for the consumer."
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McKinney, Texas 38,000 sq. ft.
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(Left to right) Mark Weiss, Amy Lambert, Don Anderson, Shirley Dozzi, Randy Estes and John H. Rattan.
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Rattan opened the doors of The Body Shop at "LBJ and
Central" in 1976 on a dirt floor with two employees. He'd never owned a
body shop, and had worked his way through college at Texas Tech in
Lubbock by working in the grocery business. At first, he relied on his
brother-in-law for technical expertise. A favorite story around the
shop is that when he was asked to go and get some 400 grit sandpaper,
Rattan, having no idea of what "grit" meant, returned with exactly 400
sheets of sandpaper. "I'm not a car guy, and I'm not good with my
hands," Rattan explains.
The Body
Shop of ten years ago was a difficult place to work, according to
Operations Director Mark Weiss, age 41. "With John, back then, it was
his way or the highway."
"My bosses
in the grocery business always yelled at me, so I yelled at my people,"
says Rattan, who adds, "But the industry has changed, technicians and
estimators are hard to hire and expensive to train, and well, that
style of management just doesn't work today."
Rattan
may have been a tough boss, but he had a knack for "building
relationships," according Weiss, who competed against Rattan in the
early 1980's and has worked for him since 1987. "At first he worked on
the used car dealers, then got into new car dealerships. The business
was built around work from dealers who didn't have their own body
shops. He got in tight with a big Mercedes dealer and then other high
end cars, notably Lamborghini." Later, The Body Shop starting working
with Mazda dealers and similar lower-cost imports. Today, Asian cars
are a larger part of the business than European.
Although
he initially concentrated on auto dealers, Rattan also wooed insurance
people, especially Allstate. Today, most of the business is
DRP-related. "Coming from the grocery business (famous for low
margins), John believed that volume was the way to go, and he worked
constantly at building sales volume," Weiss explains. "I did it out of
necessity," says Rattan. "We had lousy locations until we opened
McKinney (in 2000), so I had to go out and get the customers."
Allstate-Sterling will change industry
"We
started with Allstate in the '70's, after we fixed a Lamborghini for
them," says Rattan. That was before DRP's, but today Allstate DRP work
represents a good chunk of business for The Body Shop. "Am I concerned
by Allstate buying Sterling? Sure, it caught me off-guard. They'll find
out it's not all just numbers; it's a people business. But remember how
worried auto mechanics and tire stores were when Sears went into the
auto and tire business? Did it put all the garages out of business? It
will change the industry, one way or the other. If they (Allstate)
succeed, you'll probably see other consolidators selling out. If they
don't buy or open any more shops, it will answer the question once and
for all about insurers owning body shops."
Times changed, so did the man
Rattan
has seen tremendous change in the industry, and he likes what he sees.
"As body shops have evolved into a cleaner, more high tech business,
they've become better neighbors, more civic-minded." This comes from a
man who has himself evolved. In the mid '80's, Rattan was known in
Dallas body shop circles as a hell raiser. He would drive around in a
bright yellow jumpsuit emblazoned with the BASF Glasurit® parrot. "When
he'd pick up a fancy Italian sports car to repair, he'd be sure to
drive by it by my shop and others to let us know how well he was
doing," said Weiss. " He's very different today, and I think our people
would agree that this is a great place to work. "
The bright yellow jump suit hangs in a closet, and
Rattan has polished his image, serving as director and chairman for the
Chamber of Commerce, serving on hospital boards and fund-raising for
the YMCA. He used to frequently attend industry meetings, and was on
the industry seminar circuit with fellow Texan Bobby Johnson for
awhile, but now finds community organizations to be "a more productive
use of my time." While he comes to The Body Shop every day, he spends
much of his time working on a home building business in nearby Anna,
Texas. And although the yellow jump suit may be history, BASF is still the paint of choice. The Body Shop had always sprayed Glasurit by BASF on
high-end European imports, but switched to Diamont® eight years ago. "
We've built a reputation on Diamont and have no intention of changing
paints," notes Weiss.
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