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There aren't too many shop owners who would be happy to have a large consolidator and a big DRP shop as neighbors, but it doesn't seem to bother Ken Souza and Rich Dickson of D&S Body Shop in San Ramon, California. "Our business has continued to grow ever since they moved in," said Souza, who manages the 12-employee operation. "They have to drive by those shops to get to us. We're all together because this is the only light industrial area in the city. We get customers who don't want to do business with a huge shop like M2. The other company (Cook's Collision, a multi-shop operator) took over a small independent much like us and now we get people who are more comfortable dealing with other locally owned businesses. I really think it's helped us."
No complaints about DRPs
Souza, who was a body man and estimator, now manages a $1.5 million shop. He started in the business at age 13, working for his dad. "I now have four sons, the oldest is 12, and I hope that after the boys finish college they'll want to take over the shop." If they take it over, they won't have much room to grow in San Ramon. With DRP contracts with AAA and State Farm keeping it busy, Souza noted, "We're nearing capacity for 8,000 sq ft, and there's no where nearby that we can expand to."
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At a glance
D&S Body Shop, Inc.
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| 38 Beta Court, #A-8 |
| San Ramon, CA 94583 |
| (925) 820-0552 |
| Owners: Ken Souza and Rich Dickson |
| Annual sales: $1.5 million |
| Monthly Volume: 80 vehicles |
| Employees: 12 |
| Paint: DuPont |
| Spray Booth: Viking heated cross-flow, prep station and filtered exhaust bench |
| Frame Equipment: Black Hawk with Shark measuring |
| Welding Equipment: Lincoln MIG welders |
| DRPs: AAA, State Farm |
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Souza says he will likely open a second shop, but wants it in a smaller, distant town. When he does get a second shop, he'll make certain that he can arrange DRP contracts for it. "DRPs would be a problem - if I didn't have one. I think that a lot of the complainers don't have good DRP relationships. It's the way to go. They save time and hassling with adjusters. It gives us more control. We have a good relationship with our insurers because we do good work and they know it. And we're fair. If we're late, and it's our fault, we'll buy the rental car."
That community feeling
Community involvement is pretty much the whole marketing program for D&S. The shop sponsors Little League and youth soccer teams. "We go to our kids games and meet the parents. They brings their cars here. We've got team pictures all over the walls, and teenagers who've had their first accident will come in here and find their picture with one of the teams," said Souza. How's that for making the customer feel comfortable!
D&S also maintains very cordial relations with local mechanical shops. "They refer a lot of business to us, so we make sure to send lunch over to them to say 'thank you.'"
Aftermarket supplier is Keystone
Souza has been around a while and he's seen industry issues come full circle - like State Farm's position on non-OEM parts. "They even made us take a pin-stripe off an estimate because it said aftermarket." Actually, Souza feels there is a place for aftermarket parts. "We use radiators, condensers, lights and bumpers from Keystone Stockton Bumper quite a lot." Stockton Bumper was locally owned until Keystone, the nations's largest supplier of aftermarket parts to the collision industry, purchased it several years ago. "We also use non-OEM sheet metal to help a customer save a car from being totaled, or if the customer is paying out of pocket and wants the lowest price." When he buys aftermarket, Souza likes dealing with Keystone. "The daughter of the former owner, Shelly Webb, still works there, and we're happy with the service and Keystone's return policies. The route driver, Fred Gusto, might get a little cranky if we hand him returns, but heck, he works on commission."
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Ken Souza
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Rich Dickson |
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David Porter
Paint Apprentice
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Humberto Ruiz
Body Apprentice
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With many shops complaining that business is lousy because of the recession or that insurers are steering jobs away from them, Souza says that D&S is continuing to show growth - although limited by capacity - and he doesn't see any reason that won't continue.
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