In the last 10 years, Louisville Collision Center in Kentucky has become a collision repair shop of choice — for both customers and employees.
As it grew its monthly revenue from $350,000 to $1.4 million, and its average vehicles repaired per month to nearly 300, the shop also increased its employee roster from 28 to 46 and reduced its turnover rate to near zero.
Steve Olson, a managing partner in the business, talked to Autobody News about how the facility has built its reputation and OEM certification list to attract more customers, while ensuring it has the employees to deliver quality.
Louisville Collision Center is the collision repair partner for Louisville Auto Center, which includes BMW, Lexus, Volvo, Honda, Buick, GMC, Infiniti, Volkswagen, Chrysler, Jeep, Dodge and Ram dealerships.
Shortly after Olson joined the collision center in 2015, the dealer group was sold. The new owner wanted to “find someone who can become an owner and help with whatever the business needs to do to grow,” Olson said. He accepted the opportunity to become a managing partner.
In the 10 years since, Louisville Collision Center has grown almost 500%. It converted and moved into a 40,000-square-foot former BMW dealership, a quarter of which is now dedicated to indoor delivery and estimating bays, a fireplace lounge and a coffee bar.
“The result for the customer has just been incredible,” Olson said.
The shop has also invested heavily in OEM certifications. In addition to being Kentucky’s only BMW and Lexus certified collision shop, Louisville Collision Center is certified by Rivian, Mercedes-Benz, Honda and Volvo.
“We didn’t have any certifications in 2015,” Olson said.
Olson said the shop chose the OEM certification route over DRPs because “we think there’s only one way to fix a vehicle, and that’s the way the manufacturer says it needs to be done and with OEM parts.
Steve Olson speaks at an NABC Recycled Rides presentation at the shop.
“When you’re reliant on an insurance company for a large chunk of business, sometimes shops are scared to write [estimates] the way things need to be done, because they’re worried about their scorecard,” he said.
Olson said about 60% of Louisville Collision Center’s customers are referred by the dealership group, while the other 40% find the shop through online searches or by word of mouth.
That makes marketing a priority for the largest shop in Kentucky.
“People know who we are,” Olson said. “We’re investing in the community. We’re present, our name is out there, people see it and know what we’re all about.”
He said the shop advertises at Louisville’s downtown arena, which hosts major sporting events and concerts, and regularly participates in charitable initiatives. Specifically, it refurbishes a vehicle to be donated to a local family in need through the National Auto Body Council’s Recycled Rides program every year, and it sponsors a three-hour free lunch for area active duty and retired military members at a partner restaurant every Veterans Day.
In order to best serve all its customers, Louisville Collision Center strives to ensure it attracts and retains the best possible employees.
Olson said work-life balance and career advancement opportunities are key.
A lot of parents work for the shop. Olson said it’s important to make sure they can be there for their kids’ school and extracurricular activities — “all those are things that you only have a certain amount of time to enjoy before they’re gone,” he said.
“It’s important to me as a dad and husband that I’m able to be at those events for my family, and it’s only fair to offer that same level of accessibility to employees as well,” Olson said. “I don’t want you to give every waking second of your life to this place, because you need to enjoy your life. And if your time here is causing you to miss key moments, it’s not going to check the box for you.”
Olson estimates employee turnover is “about 1%.”
Even as the company has grown and needed to add new employees, its reputation as an employer means it gets enough applicants that it can be selective.
“A lot of consolidators have come to town, and when they take over and change things, we get people who want to join our team,” Olson said.
Olson said he got his start in the industry washing cars at a Toyota dealership collision shop right out of college. That shop gave him the chance to become an estimator, and then move up into management.
“If I see people willing to work hard and learn, I want to give them same opportunity I had to grow and see their life change as well,” Olson said. “We have several people who started in entry level roles, and are now in key roles.”
Abby Andrews