John Yoswick is a freelance automotive writer based in Portland, Oregon, who has been writing about the collision industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).
He can be contacted at firstname.lastname@example.org
There's a simple rule in business that if you want to increase profits, you need to either increase sales and revenue, or decrease costs and expenses.
In the three years since "event data recorders" (often referred to as "black boxes") in vehicles really began to arise as an issue of interest for collision repairers, there has been significant activity related to EDRs on a number of fronts:
Shop owners struggling to remain profitable say they are increasingly focusing on the paint side of the shop, looking for innovative ways to squeeze even more productivity out of paint booths, paint products and paint personnel.
At first glance, it's hard to fathom what Eliyahu Goldratt, a 58-year-old Israel-born physicist, has to offer the collision industry. But more than 20 years after Goldratt authored (along with Jeff Cox) a "business novel" entitled "The Goal," his theory of process improvement is increasingly being discussed within many shop "20 groups" and implemented by a growing number of collision repair businesses.
For anyone in this industry who started out hustling sales - whether that means collision repair jobs, cans of paint or tools and equipment - pulling back from a focus on growth in gross sales can be a challenge. Increasing the top line, after all, is often a key ingredient in increasing the bottom line. More sales equals more profit, right?
Hiring a new employee can be tricky business. One West Coast shop owner found that out recently when within two days he suddenly found himself down three technicians. Before he could even get a 'help wanted' ad place, a man came in looking for work.
Here's your assignment: Pretend you have 45 seconds to talk about your business in front of a group of people you'd love to have as customers. Could you tell them something that's unique about your business, something that no other shop in your area could or is likely to tell them?
During the 1980s and 1990s, association and seminar leaders frequently pointed to changes in vehicle technology that were putting a dent in the collision repair market. Daytime running lights, the third brake light and anti-lock braking systems (if drivers used them properly), they'd say, were among the key factors pulling accident frequency down.
Rod Enlow joked that in mid-2005 as he became chairman of I-CAR's board of directors, it looked like it was going to be a fairly smooth and calm year for the training organization. The destructive forces of hurricanes Katrina and Rita turned out to be just one of the issues that ended up buffeting I-CAR during what Enlow now calls a challenging but successful year.
One of the ways some shops are coping with what they are finding is decreasing profits in collision repair work is adding services beyond body work: mechanical work, detailing, and spray-on bed liners.
In October, the Society of Collision Repair Specialists (SCRS) gathered representatives from more than a dozen of its affiliate associations across the country to exchange ideas and information on their groups' accomplishments and key issues.