|
Last year my wife and I bought a large, white refrigerator. This year,
we redecorated the kitchen and the refrigerator looked like a white
elephant. We sold it and bought a shiny black one, taking quite a loss.
Big mistake. We should have taken it to Ron Dennis at Northgate
Autobody in San Rafael, California because that's how he got started -
painting appliances.
"I started painting refrigerators and appliances in 1962 for
$35 when I was 25," Ron tells us. "You could make a living at it back
then. One day a guy came in and asked me to paint his car, and it grew
from there. I started doing metal work, and before long we were in the
body shop business."
They don't paint many appliances at
Northgate today - they're too busy repairing up to 50 vehicles a month,
with revenues of over $1 million a year.
It's still very
much a family business, run by Ron and Barbara Dennis and their
son-in-law, Greg Overton, who joined them after earning a degree in
marketing. Dennis handles the estimating while Overton runs the shop
floor. He's been there 16 years now, and the painter who just retired
had been with Dennis for 28 years. Body men typically last ten to
twelve years, or until they move out of the area. With everyone in the
industry complaining about high turnover and a lack of skilled
craftsman, how does a small shop retain its people for so long?
Pays by the hours, plus good benefits
"We
treat them like we'd want to be treated," says Dennis. He also pays
them by the hour, which is very unusual in Northern California. "I know
most shops pay the men a percentage of the labor charges. What happens
is that they make a lot of money quickly, and then they just don't show
up - they take time off whenever they want to. It can also lead to work
being rushed, and the quality suffers. That doesn't happen here. I
won't run a shop that way."
Dennis also retains employees by
offering benefits usually found at larger operations, including paid
vacation, paid holidays, medical/dental benefits, and a 401K pension
plan.
Northgate is located in an industrial park in wealthy
Marin County, next door to San Francisco. People in the area are
demanding, and the shop long-ago developed a reputation for integrity
and quality work. So much so, in fact, that the insurance companies
came to Dennis, asking him to participate in DRP programs. "I sure
didn't go out after them," he says, but the shop's DRP partners now
include AAA, State Farm, Allied and Metropolitan. "The insurers are
pretty happy with us. AAA does a customer satisfaction survey and we
consistently score 10 out of 10 on 'would they refer friends here' and
'quality of work'."
The shop area is 5,000 square feet,
which is small by today's standards, and Dennis wants to keep it that
way. "We've had opportunities to expand, but we choose to keep it small
enough so that we keep a tight control on quality. There's no way those
large shops can produce the quality work we do, especially on heavy
hits."
Chose Zhongda Spray Booth
To produce
quality work, Dennis invests in the latest equipment, and coming from a
painting background - he sprays Standox and Spies Hecker - was
particularly concerned about the spray booth.
"We had
decided to buy a big name brand, quite expensive. I was reading
Autobody News at lunch, no kidding, and I saw this ad for Zhongda,
which I hadn't heard of. I called and when the salesman told me the
price, I said to him, 'you've got to be kidding.' And he says, 'well, I
could add on $10,000'."
Dennis and Overton went to another
shop in San Rafael that had a Zhongda spray booth installed. "What
scared me initially was that it was made in China. But then I saw the
American blower motor, and I felt how the outside of the booth was
cool. The other shop said they'd had no service problems. We decided
real fast to buy it. It was a great decision."
R&R on aftermarket parts
Top
equipment and years of experience can still be compromised if the
insurance company insists on cutting corners. While Dennis has had his
share of arguments with insurance adjusters while standing up for his
customers, he finds the situation today much more tenable than it was a
few years ago. "There's also less steering in this area than there was
five years ago," observes Dennis. He said that when customers tell
their insurers they want the car repaired at Northgate, they usually
don't get an argument. "We're known for our integrity, and you can't
buy that."
If there's going to be a "discussion" with an
adjuster, it's likely to be over writing for non-OEM parts. Dennis says
that despite the State Farm verdict last year, aftermarket parts are
still being "tried" by some of his DRP insurers. "And when they don't
fit, they'll let you order the OEM part, but nobody pays you to R&R
them. I'm tired of donating my time on parts that don't fit."
After a career spanning 39 years, would Ron Dennis do it all again? "It's been good to us, so I think I would, yes."
|