For those body shops still not convinced that obtaining OEM certifications is a critical component for surviving in the future, Robb Young of Assured Performance said, “Change is necessary if you want to capitalize on the opportunity of the future. If you continue to run your business the same way you have been, five years from now your business will either be dying or go out of business.”
Young recently spoke to a group of body shop owners and managers during the AkzoNobel Acoat Selected North American Performance Group meeting in San Diego, CA, about the “20/20 Vision: Leveraging Your Certification.” That 20/20 Vision, according to Young, is the point in which a shop has 20 percent growth in its business and earns a 20 percent pretax net profit, an achievement made possible as a result of OEM certification and executing a well-thought-out business strategy to become an OEM Certified Collision Care provider. Young is the director of strategic accounts for Assured Performance, a North American administrator of OEM certification programs, network management platforms and collision repair business development programs and tools.
During his training session, Young discussed the new paradigm taking place in the collision repair industry and presented the case for certification from both revenue and expense perspectives.
He identified the three main focuses insurance companies have today: customer satisfaction, cost reduction and risk mitigation.
“The paradigm is shifting and they [insurance companies] are looking for ways to save money and reduce risk,” said Young, who had worked in the insurance industry and automotive industry for 25 years prior to joining Assured Performance Network this year. Rather than viewing insurance companies as customers, he suggested looking at them as strategic partners.
“The top insurance carriers are already looking at their DRP programs and overlaying them with certification programs as a possible way to enhance and improve the 35-year-old business model,” said Young, who predicts this will continue in the future.
As a result, he stressed the importance of getting certified to stay competitive.
“As Benjamin Franklin said, ‘By failing to prepare, you are preparing to fail,’” said Young.