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Tuesday, 08 September 2020 22:31

Turn Eight Common Shop Owner Mistakes into Positive Life Lessons with Mike Anderson

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Mike Anderson Mike Anderson

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Mike Anderson of Collision Advice recently explained how to turn eight common collision shop owner mistakes into life lessons to benefit their businesses.

“When you look at mistakes you’ve made, you have to realize that they aren’t mistakes if you’ve learned from them, and when you learn from them, they become life lessons. I’ve got a lot of life lessons I’d like to share today,” Anderson began.

 

While presenting “Life Lessons of Collision Shop Owners” on Sherwin-Williams’ Ecolean University, Anderson was joined by Mike Lanza, manager of business consulting services at Sherwin-Williams Automotive Finishes, as they discussed why shops struggle and how to fix it.

 

Anderson’s first life lesson focused on the importance of cycle time. He explained, “Cycle time should be important for DRP and independent shops alike because the basic goal in business is to get to breakeven as soon as you can every month. Fixing cars in a reasonable and timely manner will improve your customer satisfaction rate, and if you fix vehicles faster, that allows you to bring more cars in sooner and make more money.”

 

Consumers aren’t the only ones who care about cycle time. This is a vital factor for insurers, particularly those with which the shop has a DRP relationship, because it leads to improved loss adjustment expenses, reduced rental expense and higher CSI scores.

 

OEMs also care about cycle time because it impacts their brand; customers inconvenienced by shop delays are more likely to have a poor opinion of the vehicle manufacturer.

 

Shops should strive to repair vehicles two to four days faster than their market average.

 

“Cycle time is important to all stakeholders in the repair process, but it should be most important to you as a business owner because it’s the key to your break-even point, which is how you put more money in your bottom line,” Anderson emphasized.

 

Cycle time can be broken into three micro-cycles: pre-repair, repair and post-repair.


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