CARSTAR Auto Body Repair Experts announced that September ended with exceptional same store sales up 11.4 percent over the previous September. For the third quarter, CARSTAR delivered some of the industry’s highest same-store sales and it is looking ahead to record revenue for 2014. CARSTAR finished the quarter with same stores sales up 8.3 percent over that quarter in 2013, and is on track to deliver more than $650 million in revenue for the year, a record for the company.
“That growth is fueled by several key factors,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “We’ve seen increases in repair volumes from the top 25 insurance carriers, driven by CARSTAR’s EDGE Performance platform and continued KPI performance. New car purchases have remained strong throughout the year, which leads to higher repair values. Weather continues to drive repair needs, from winter ice and snow to spring hail to summer storms. And, advanced vehicle technology such as back-up cameras and on-board sensors are more expensive to repair.”
Looking ahead, CARSTAR remains the only MSO in the country that has an aluminum certification program. They are continuing to roll out their aluminum plan to their network. They are identifying specific CARSTAR shops in each major market that will be aluminum certified, then “load leveling” work to those stores as necessary.
“Aluminum repair will be a major differentiator in our industry moving forward,” said Byers. “As the auto industry evolves to meet CAFÉ standards, the shops that can deliver this advanced service will rise above those who don’t invest in training, technology and shop improvements.”
KPI Performance Improvements and Insurance Growth Key Contributors
CARSTAR’s proprietary EDGE performance system has helped many of its stores achieve the industry’s highest KPIs. Many of the CARSTAR locations repeatedly have a Net Promoter Score (NPS) exceeding 90 percent - a full 10 points higher than the industry average. The network driveable cycle time and closing ratio lead the industry.
The Operations team has completed another round of enhancements to the EDGE Performance Platform. These include more substantial content in each Tier, a new Tier 5 focused on technical competence around aluminum, the addition of OPGs, or Operational Performance Groups, that will be held regionally to support GM training, and new MPGs, or Market Performance Groups, which are currently are in pilot with ADO training to release to the system by end of first quarter 2015.
The growth in top 10 insurance carrier volume over the last several years is impressive, up an estimated 55 percent since 2010. They have added 144 new DRPs to its stores so far this year – and more of those are top 10 carriers than ever.
Industry Groups Recognize Performance
The Romans Group LLC has published their rankings of the largest collision repair Multi-Store Operators in North America, and CARSTAR Auto Body Repair Experts came out on top. With more 430 locations throughout the U.S. and Canada, CARSTAR is now ranked as the No. 1 largest MSO.
CARSTAR Auto Body Repair Experts has once again earned a spot in Franchise Times® annual Top 200™ ranking of the largest franchise systems in the U.S. CARSTAR is now ranked 112 on the list, compared to a ranking of 117 in 2013. The move up was due in part to increases in both sales and unit growth.
New Branding Programs, Community Involvement Drive Business
CARTAR has been rolling out a new branding program in stores across the country, and much of the network is in process. The new store branding brings a fresh, modern look to the store, and emphasizes areas for customer service, amenities and comfortable waiting areas.
CARSTAR also is wrapping up a number of philanthropic programs for 2014. Across the country, CARSTAR stores have been raising money for their local Make-A-Wish chapters through community events, and this year that donation totals more than $135,000. They are a major participant in the NABC It Can Wait campaign to eliminate distracted driving, and just kicked off the CARSTAR Military Month and Recycled Rides program for deserving military members.
About CARSTAR
CARSTAR Auto Body Repair Experts is North America’s largest Multi-Shop Operator Network of independently owned collision repair facilities with more than 430 locations in 30 states and 10 Canadian provinces. CARSTAR delivers national scale, consistently high-quality vehicle repairs, repeatable outcomes and the industry’s highest customer satisfaction ratings; all repairs are backed by a national warranty and service guarantee. For more information visit www.carstar.com. CARSTAR is actively seeking new franchisees. Interested parties should contact Scott Robertson, Vice President of Development at [email protected] or 888.505.6815.
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