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April 2010 Issue

Making a Difference

Feeling overwhelmed by the issues facing the industry? Here are some ways you - as an individual spending as little as fifteen minutes of your time - can make a difference.

Jonah Lehrer, a contributing editor at Wired magazine and author of How We Decide, who often writes about neuroscience, recently explained some of the ways our minds can be tricked into making a decision or can push us to take action.

If a non-profit wants to get you to donate money to help solve a large societal problem – say, hunger in a third-world country – it could provide you with statistics on the scale of the problem: Millions of people lacking food, thousands dying every year, etc.

Lehrer said, however, that a far more effective way to gain your help might be for that non-profit to instead focus just on the plight of one child or one family, telling you their story and explaining how your contribution can make a difference to them, and others like them. Bringing the issue down to a manageable scale, Lehrer said, is more apt to get your mind to move you to act. Your contribution may only be enough to help a single family, but when combined with similar help from others, the larger problem gets addressed.

Some of the key issues facing the collision industry are large and systemic. It can be easy as an individual to feel almost powerless to change or improve the situation. That is why this month we have compiled eight things you can do now, today, to help make a positive change in the industry. Most are relatively simple and might not require a lot in terms of time or money. No single one will revolutionize the industry or single-handedly solve a major problem. But combined with similar actions by others, they can make a significant difference.

Study the “P-pages.”

We’ve offered this advice in the past, but it bears repeating: The odds are good your estimates and final bills are not as complete and accurate as they could be with a better knowledge of the “procedure pages” or “guide to estimating” for all three of the major estimating systems. Every estimator should set aside 15 minutes a week (or one hour a month) to read a few pages from the documents, even if just as a refresher. All three can be downloaded at no charge from the Database Enhancement Gateway (DEG) website: www.DEGweb.org. Just click on the “Get Educated” tab from the homepage.

Take some technical training.

Educators in every field will tell you that when business is slow, companies think they have no money for training, and when business is booming, they think they have no time for it. But technicians, shop owners, and managers who say they regularly continue to get training – even just a few courses each year – say it pays dividends in a variety of ways. Training helps improve the quality, productivity and safety of technicians’ work, certainly, but it can also help ensure the front-end staff knows what procedures are necessary and billable. And perhaps at no time since the shift to the unibody vehicle have vehicle technology, structure, and materials been changing as quickly and dramatically as they have today. Stay up-to-date by signing up for some I-CAR (www.i-car.com) or other technical training now.

Lodge a CAPA complaint.

Are you rejecting a non-OEM part that has a yellow sticker indicating that it has been certified by the Certified Automotive Parts Association (CAPA)? Help yourself and the industry by letting CAPA know why the part did not meet your standards. Yes, it may feel like you are doing “policing” work CAPA should be doing itself. And you might not like the ten minutes it may take to fill out the form at the website: (www.capacertified.org). But non-OEM parts will only improve if there is demand for only certified parts, and if CAPA finds out when manufacturers are not continuing to meet the standards. If you cannot file a complaint on every such inadequate part, even one per month will make a difference.

Make a DEG inquiry.

When an insurer began telling Autocraft Bodywerks in Austin, Texas, that "masking inner jambs" was included in the outer refinish time in Audatex, the shop turned to the Database Enhancement Gateway (DEG). Funded by three national repairer groups, the DEG website (www.degweb.org) offers an easy way to send an inquiry related to any of the “Big Three” estimating systems. Now in its third year, the DEQ has fielded more than 2,100 such inquiries ranging from concerns about inadequate procedure times or missing parts information to – in the case of Autocraft – requests for documentation to support your side in a negotiation.

Using the DEG to make a repair time more accurate helps not only you but the industry as a whole. Submitting an inquiry can be quick – ten minutes or less. Even just one inquiry from more shops each month can help increase the accuracy of the estimating systems.

Autocraft got the answer it needed to go to the insurer: "The Audatex refinish allow-ance includes masking of the gap between panels by back-taping or using foam tape,"

Audatex said in its response, "If this is not sufficient to protect the interior surface from overspray, then the masking of the interior is a separate consideration that is not included in the refinish allowance. In the example provided, the masking shown of the fender jamb and the hood would fall under the masking of the interior and would not be included in the Audatex refinish allowance."

Get out of your shop.

Too many shop owners’ biggest weakness? Not spending enough time looking beyond the four walls of the shop. Nothing beats visiting with another shop owner – or visiting another shop – for sparking ideas that will help your business, and ultimately the industry, to improve. So plan a trip to NACE (www.naceexpo.com) or SEMA (www.semashow.com) in Las Vegas this fall. Attend a Collision Industry Conference (www.ciclink.com). Invite another shop owner to tour your shop, and ask to tour his or hers. Ask your paint company or trade association for a suggestion of whom to call. Consider joining a 20 Group that allows you to meet quarterly with a small group of non-competing shops to exchange ideas and compare numbers. The paint companies sponsor such groups and there are independently-operated 20 Groups as well.

Know your numbers.

An industry consultant who operates several such 20 groups said he never ceases to be amazed at the disarray he finds in many shops’ financial records.

“I’ve seen some good-sized shops – doing more than $2 million in annual sales – that don’t have the chart of accounts and financial tools in place to even know accurately how much they’re making or losing on parts, labor, and materials,” the consultant said. “Without good numbers, you can’t make good decisions about direct repair programs, equipment purchases, hiring and firing decisions, etc. A lot of shops assume – incorrectly – if they have the work they’re making money. I’ve also seen some shops discover some internal financial fraud they didn’t know about until they had good monthly numbers to review.”

Need help getting your books in order? Consult with a CPA, or check into training available through your paint company or the Automotive Management Institute: www.amionline.org.

Join an industry association.

Some in the industry find fault with the state or national trade associations for not doing enough to help the industry. But often these critics are not aware of all that these groups do accomplish – despite the handicap of rarely having more than five to ten percent of the industry as members. The odds are good that the discounts on products and services you can receive as a member will cover most, if not all, of the few hundred dollars a year in membership dues. So even if you have no interest in attending meetings or “getting involved,” you can help your business and the industry by at least mailing in that membership application and dues check. Just having even a slightly higher percentage of shops as members will give these groups more resources and clout while they work on behalf of the industry.

The three primary national groups (which can also put you in touch with any affiliated state organization they have in your area) are the Alliance of Automotive Service Providers (www.autoserviceproviders.com), the Automotive Service Association (www.asashop.org), and the Society of Collision Repair Specialists (www.scrs.com).

Sign up for “Recycled Rides.”

Though better than it once was, the collision industry still suffers from somewhat of a negative public perception. No single shop can change that overnight, but you can do your part by getting involved with the efforts of the National Auto Body Council (NABC).

The NABC’s efforts to improve the industry’s image include the annual “Pride Awards,” recognizing those in the industry for their charitable and humanitarian efforts. The NABC also can provide shops with help participating in its annual “Recycled Rides” program in which shops, insurers and vendors team up to repair vehicles that are donated to families and groups in need. NABC hopes to coordinate 150 such vehicles donations all across the country during Thanksgiving week this year. Apply to get involved and obtain more information at the NABC website: (www.autobodycouncil.org).

What is the difference?

None of these activities will take up too much of your time, or require complicated planning, or need large outlays of money. Some of them just need to be added to your routine as money-saving habits or efficiency improvements. What is noteworthy about each of these suggestions is that you will become more proactive and positive in your profession if you incorporate them into your workday. Yes, and you will then be making a real difference.   o

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