“Equipment that is not being maintained properly definitely cuts into your profitability,” he said.
Also, he talked about buying a new set of welder tips to be used on a squeeze-type resistance spot welder for every single major collision repair that is done in the shop, and then including the cost on the invoice. Afterward, the tips can be given to the customer or saved so the copper can be traded in later and the shop can buy the technicians lunch with the money.
Some of the “Medium Rocks” he notices in shops are risks that are customer service-oriented and may or may not affect the body shop.
These include check-in sheets not being completed, electronic files not being fully documented and frame measurements not being completed.
In some shops, Olson has noticed copper weld-through primer being used instead of zinc.
“No manufacturer recommends copper,” he said. “It should not be in your shop under any circumstance because no manufacturer recommends it.”
In addition, he said epoxy primer is often not present or it is used incorrectly, vehicle protection is not complete and painting is done under urethane set glass. The other medium-risk item he mentioned is having self-etch primer in the body department.
“Many technicians use it under seam sealer or body sheets, and it doesn’t belong there,” he said.
Is your company embezzling from you?
During the webinar, Olson also talked to attendees about their business process and how to avoid the net profit being negatively affected.
He then explained the “Canary in the Coalmine” principle.
“A Canary in the Coalmine is an advanced warning of some danger,” Olson explained. “The metaphor originates from the times when miners used to carry caged canaries while at work; if there was any methane or carbon monoxide in the mine, the canary would die before the levels of gas reached those hazardous to humans.”
In this case, Olson said the canaries are the problems in your shop that can affect profitability.
10 “Canaries” to look out for:
1) Come-back rate
This is when a car comes back to your shop for any reason to have something repaired, even if it is parked outside and a customer notices something before driving away.