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Largest dealer-owned auto body shop in U.S. plans growth E-mail
Written by Richard Neubauer   
Saturday, 01 June 2002

What's the largest dealer-owned body shop in the United States? Huffines Collision Center in Lewisville, Texas has held that distinction since 2000 according to Ward's Dealer Business magazine. This is a shop where $750,000 in sales is a slow month. With seven estimators - some of whom earn over $100,000 a year - and 12 men in the paint shop working six days a week in four spray booths, Huffines regularly chalks up sales of $850,000 a month, "and we've slowed down quite a bit in this recession," says center manager Darren Huggins. 

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Darren Huggins, center manager

ndustry isn't recession-proof? "Bull," answers Huggins, "There are more people driving wrecked cars than I have ever seen in my life."

Before the recession took its toll, Huffines broke record after record, including a $1,250,000 month in March 2000. Does it bug him that he's fallen below the million dollars a month mark. "Sure. Once you've tasted champagne, you don't want beer."
 
The 45,000 square feet, free-standing Huffines Collision Center is part of the Huffines Auto Group, founded 75 years ago as a Chevrolet dealership. Run by J.L. Huffines, Jr., son of the founder, the auto group now includes seven different name plates, from Dodge to Kia. "A lot of our business is attributable to the dealerships' reputations," explained center manager Huggins. "A 75 year reputation for good service means a lot when someone is deciding where to fix their car."

Still, there are other large dealer groups but they don't have a body shop that grosses $11 million a year and consistently leads all departments in profitability. "We do quality work and people around here know that," explained Huggins. "When you start doing production, people think you have to sacrifice quality. Not true."

Huggins says that, because of their size, they are able to put people and systems in place to insure that every job is done right. "We can afford the latest equipment and we have a big training budget (it's an I-CAR Gold Class Shop). We also pay very well to retain the best people, and we don't cut corners on materials."

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45,000 sq ft of shop space at the ready, Huffines Collision Center is part of the Huffines Auto Group.
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Warm reception area....
 

 At a glance

Huffines Collision Center 

360 Bennett Lane

Lewisville, TX 75067

(972) 219-5149

Manager: Darren Huggins

Volume: $10,500,000 annually

Size: 45,000 sq, ft.

Employees: 65, including 2 production managers; 7 estimators; 2 quality control supervisors; 20 body techs; 12 painters and helpers; 4 customer service reps; 5 parts personnel; 4 detailers; office manager; 3 janitors.

Paint: PPG Global

Spray booths: 4 Garmat down drafts; 4 prep stations; cut-in-booth

Chief, Kansas Jack; Heine Warner; Shark measuring

 

To insure that vehicles move through the shop smoothly, Huggins is assisted by two production managers, Spencer Boyett and Chris Houston. "It's a team of 65 people and many have been with us a long, long time. They do good work, consistently."
 

Chose PPG Global® system

The shop sprays the PPG Global line of paint. "We converted to PPG in March 2000 and I can't see us ever using anything else. It's a phenomenal paint, and very profitable. We offer our customers the PPG lifetime paint warranty. My painters really like the color matching. We do a lot of work on high-end cars - Lexus is big - and the color has to be right on. With PPG, it is."

Huffines is part of the PPG CertifiedFirst Network, the national marketing program put in place by PPG for its customers that requires third-party verification of shop equipment and facilities as well as an on-going CSI program to insure that member shops continue to meet high standard for quality and service.
 
Huggins also benefits from PPG's management program, the MVP Round Table. "We just joined a new MVP group with shops doing over $4 million, the ParaKaizen group. I don't have time to participate in a lot of industry groups and conferences, but ParaKaizen is worth my time. MVP is a good program. I recommend it."
 
Shop manager Huggins is unusual in the industry in that he doesn't come from an automotive background. "When I was young we moved from Texas and I grew up in Colorado. I started college there and then came back to Texas and got a degree in business from what was then called North Texas State in Denton." That was in '85, and after interviewing with IBM - "I didn't like the blue suits" - Huggins took a job as comptroller with a body shop. "In one year I was running that shop but I needed more of a challenge, so I joined Huffines Dodge as body shop manager in 1988. It was only doing $35,000 a month, so I figured there was both room and capital to grow. The Huffines have invested heavily in our growth."
 

Nineteen DRP programs

A shop this size can't grow on its reputation for quality alone, notes Huggins, so he has put into place strong relationships with the major insurance companies. Huffines roster of DRP relationships includes among others Farmers, Allstate, State Farm, GEICO, Nationwide, USAA, Met Life and Hartford. About 75% of the business is insurance-related. "Allstate alone spent over $2 million in my shop last year. We're probably the largest Allstate provider in Dallas - Ft. Worth." Is he concerned about the Sterling Collision acquisition by Allstate. "We're certainly watching it closely, but I know we'll still be doing plenty of business with them."

"The insurers come to us. We are consistent here, and that's important to them. We try to accommodate them with alternative parts - aftermarket and salvage - when it's appropriate. You can't go putting OEM parts on a seven year-old Chevy. I mean, hey, our parts managers at the dealers would love it, but it's not practical."
 

Right now, Huggins is trying to accommodate one insurer who wants the shop to put in eight hours per day on their insureds' vehicles. "Every six months, some insurer wants to do some crazy thing. Four hours is reasonable, eight is unreasonable. We do our best to please both the customer and the insurance company just so long as the insurer doesn't expect us to do inferior quality work to save a few bucks. We don't step over that line."

Estimators are business managers

The well-paid estimating staff does far more than just write sheets. Each of the shop's estimators is responsible for one or more insurance clients. "My estimators are paid on the gross profit from each job - not the number of jobs or dollar amount of the ticket. They have an incentive not to miss things on the estimate. But they also have to collect from the insurer. Kind of balances things out." The shop's top estiators include Gary Gardner, Kevin Kidwell, Jeff Ball and David Moore. "All of these guys should write in excess of $2 million this year," said Huggins.

In addition to insurance work, fleet repairs make up 15% of sales, windshield replacement 5% and good-old fashioned repaint jobs a striking 20%. "We have a $1,500 scuff and shoot job," said Huggins. "To make money in that business you have to run volume, and we do!"

The shop also supplements insurance work with paintless dent repair (PDR) and spray-on truck bed liners.
 
 
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