The first thing you notice about Shouse Collision Repair & Frame is that it's big, very big - almost 40,000 sq. feet. The second is that it's busy, some might even say chaotic. "It's always crazy around here," said Randy Shouse, 41, who with his two older brothers, Jerry, 43, and Chris, 42, and their sister, Dana, 39, operates the business founded by their dad, Gerald Shouse.
Before his death four years ago, Gerald Shouse built his shop from a two bay, part-time operation into one of the largest collision repair centers in Shreveport, Louisiana. And his family helped. "Dad opened the shop in 1967, and if we (the kids) weren't in school or playing sports, we were at the shop," recalled Randy. "He was the professor. He seemed to know when to expand. He was never scared - or if he was he didn't show it - to take the next step in building up the business."
The company repairs about 150 vehicles a month, from cars to buses. Gross annual sales exceed $3 million, including collision repair, glass work, towing, alignments, and the upholstery shop. Shouse today employs 30, including two full-time estimators, assisted by Randy. "If there's a top notch estimator out there looking for a job, tell him to see me."
It was after comparing their labor costs to other shops, using MVP information, that the family decided to change the technicians' pay system from hourly to flat rate. "The overtime was eating us alive and we were one of the few shops around still paying by the hour. We had one or two difficult months when we made the change," Randy recalled. Now, ten months later, the techs have actually seen their effective pay per hour increase in most cases. "And everybody stayed on and worked through it with us. We feel like we have the best trained and most skilled techs in the area." And they're all I-CAR trained.
In addition to MVP and technical training through I-CAR, the Shouses are involved with the Louisiana Collision Association (LCA), Northwest Louisiana Collision Association, the Insurance Commissioner's Task Force and the Shreveport Chamber of Commerce.
"Insurance Commissioner Jim Brown started the task force along with LCA about two years ago. Insurance leaders and repair professionals attend the meetings. Some of the main issues include paint caps, steering and getting paid for necessary procedures." The commissioner's task force has made progress, according to Randy. For instance, Louisiana consumers who are confronted with paying the difference between a shop's paint and materials invoice and the insurance company's arbitrarily capped amount can now complete a DOI complaint form to get assistance from the commissioner's office. "I've never seen the consumer lose when they complain," reported Randy, who said his shop has never accepted a paint and materials cap.
DRP relationships OK, steering isn't
Shouse participates in many DRP programs, including State Farm, Allstate, Prudential, USAA, Travelers, Shelter, Mendota and Encompass (formerly CNA).
" I believe in DRP programs, but there are some we've chosen not to participate in. I'm 100% against any insurance company that twists its customers' arms to get them to use their DRP shops. There's a company here - we dropped them - that has signed up shops that agree to cut their rates, then the insured or claimant is told to use those shops. They put out a letter that says you can take the car elsewhere, but the insured or claimant has to pay the difference. We think that's illegal, but even if it isn't, I don't want a customer under those conditions."
Go up the ladder when you need to
"Too many shop owners take adversarial positions when they deal with insurers," Randy explained. His advice for working out issues with insurers? "Get to the right person. Don't be afraid to go over someone's head. It may be the guy a couple steps up the ladder who can shoot the problem down. You've got to learn how to do that."
Shouse Collision isn't shy about charging for everything they do, either. "If it's in the P-Pages (Procedure pages), we charge for it." The shop has all three estimating systems, but every estimate still gets reviewed for accuracy and completeness. "There are a lot of so-called 'not included operations' that are in the P-Pages. If we're performing them, they go on the invoice."
Randy doesn't believe in "getting into it" with an appraiser in the shop. "Most of the time they're just doing what they've been told. You've got to go above them and find out who's making the rules." Another reason that Randy gets along well with most appraisers and claims adjusters - "They know that I'm doing what I tell them I'm doing."
Shouse Collision uses some aftermarket and LKQ parts as appropriate, but finds that insurers are not writing for non-OEM parts as often as they once did. In fact, if they write for non-OEM at Shouse's, it may cost them more. "If we put the part on and it doesn't fit, we charge them to R&R the part - always."
"The business... would come here anyway"
Part of Shouse's success in dealing with insurance companies may come from its long-standing reputation in Shreveport, a city of 375,000 in northwest Louisiana and home to a General Motors assembly plant. "DRPs have been a great addition, although most of our business is repeat or referral and would come here anyway."
One thing that's certain - the advertising doesn't bring them in. Except for the yellow pages, Shouse doesn't do much advertising. What the shop does do is all of the repair work for the GM plant. "We make it a point to tell new customers that we do all of GM's work. It goes a long way towards making them feel comfortable dealing with us," noted Randy.
Joins CertifiedFirst Network
Making the new customer comfortable is part of the reason this well-established shop joined the CertifiedFirst Network, a branded, national network of auto body repair facilities established by PPG and available to shops that spray PPG or ICI Autocolor paints and can meet stringent quality standards.
It adds a little more distinction to the shop, and we can display the Good Housekeeping Seal of Approval," explained Randy. Huh? Good Housekeeping in a body shop? "The female customer sees that Good Housekeeping Seal up there on the wall and it really means something to them. We're one of only a few CertifiedFirst shops in Shreveport. They make you jump through hoops to get approved, so you know you'll be in good company."
Randy believes that CertifiedFirst will bring additional benefits as the program develops. PPG recently kicked off a consumer advertising campaign in selected markets. "Right now, we're implementing their Internet program that allows customers to use the Web to check up on their car while it's here. My sister thinks that it will cut down on phone calls. I think it shows that we're progressive."
Shouse Collision changed to PPG from a European paint three years ago, "mostly for three reasons -- training, service and support. You know, all the top brands are good paint. What makes a difference with PPG is the support. If I'm running into a snag, they'll send someone out to work with us. I get a lot of positive input on paint and business matters. It's been real good for us."
