Dealership collision center leverages staff longevity and MSO affiliation

March 4, 2016
A huge sign towering above the John Hine auto dealership complex serves as a beacon, beckoning the 300,000 motorists who travel along Interstate 8 each day, and many of these drivers are in need of body shop work.

A huge sign towering above the John Hine auto dealership complex serves as a beacon, beckoning the 300,000 motorists who travel along Interstate 8 each day, and many of these drivers are in need of body shop work.

“You can see it from far away, and we get a lot of street traffic from people coming in for estimates,” says Steve Ranck, manager of John Hine’s collision repair center.

At a glance:
CARSTAR John Hine Collision
Mission Valley, Calif.
Location
John Hine
Owner
1
No. of shops
58
Years in business
21
No. of employees
7
No. of DRPs
35,000
Total square footage of shop
27
No. of bays
7 days
Average cycle time
$2,228
Average repair order
$55,700
Average weekly volume
26
No. of customer vehicles per week
$2.7 million
Annual gross revenue
Axalta
Paint supplier
Chief
Frame machines used
CCC, Mitchell
Estimating systems used
www.johnhine.com/john-hine-mazda-collision-center-san-diego.htm
Website

More importantly, car-sales personnel in the showroom and on the used-car lot collaboratively work with the entire staff to integrate the shop’s expertise into the entire vehicle purchasing process.

“That keeps the customer bought-in to us. When they leave our dealership they know that we have a service department, they know that we have a body shop, and they know that we work with the insurance companies,” Ranck explains. Buyers during work hours are given a tour of the facility – more times than not pausing to have a brief conversation with Ranck about the shop’s attributes should need ever arise.

Each glove box contains a branded what-to-do-in-case-of-an-accident brochure to further drive home to company’s commitment to complete customer care throughout the vehicle’s lifespan. And even if your vehicle is totaled and hauled away to the crusher, a coupon good for a discount on a new or used car is included in the transaction.

Because the Hine dealership is set into a San Diego hillside on three levels, the resulting layout prominently entices with easy access to the collision center. “We’re located right in front of the dealership, we have our own driveway, and you don’t have to walk through the service department” when seeking to discuss body work.

“They’re not just buying a car,” says Ranck, “they’re buying into our family.”

Steve Ranck and John Hine

In totality the John Hine dealership is a large corporate entity known throughout the region, yet a friendly and family oriented atmosphere prevails among staff and management.

“You spend more time with your co-workers than you do at home,” Ranck points out. Ranck, general manager Dave Miller and John Hine himself all maintain an open-door policy to address anyone’s ideas or concerns. “John is here every day, and the employees see that. I know my guys very well, and when I work with my employees I lead by example.”

The result is a stable workforce eager to provide the best customer service. “We have 318 years of experience in our collision center with 21 fulltime employees,” says Hine, who is the operation’s second-generation owner. The body shop aspect was established in 1957 on El Cajon Boulevard in San Diego, and Hine saw future opportunity amid the region’s increasing development.

“With the expansion of the interstate freeway system’s I-8 and the presumed rapid growth of Mission Valley, we relocated our collision repair center to Mission Valley in 1965, where we remain today,” Hine recounts.

The initial body shop manager was Earl See, and upon being promoted to upper management he brought onboard the legendary Don Dragani, who managed the collision center until his death in 1986. In keeping with the Hine tradition of family loyalty, Dragani had announced his pending retirement prior to becoming seriously ill – it was promptly decided that he would remain on the payroll with full benefits as Ranck assumed greater responsibilities.

The CARSTAR John Hine Collision sign from the freeway

“Don Dragani was not only a great supervisor, but a wonderful friend and mentor who gave me great advice when it came to dealing with customers and co-workers,” says Ranck. “He told me that when I had a disagreement with an adjuster or insurance company, it was important to show and educate them about what it takes to repair the vehicle properly. He also told me to never take it personally, because you will most likely be working with them in the future, and it’s important to keep a good working relationship.”

Ranck goes on to relate how “that’s where I get a lot of my passion – that’s the way Don Dragani was. If we did something wrong we had to make it right, and if you’re honest with people it builds loyalty.”

Hine echoes similar sentiments: “I have been here for 36 years, and I want customers to know that myself and my crew care about doing the best job for them and their vehicle, and if there is a problem I will be there to make it right.”

“I must say that our body and paint technicians are very skilled at what they do,” says Ranck. “They care about every vehicle that they work on. They understand that there is a person and family inside every vehicle, and it is important that every vehicle looks great and drives better than it did before it came in for repairs.”

Having been interested in cars since childhood, at age 21 a professionally inexperienced Ranck applied – and was turned down – for an opening on the Hine service center’s parts counter. “But the parts manager must have liked me because he called me back and offered me the position of special orders clerk. Within five years, I was promoted to a counter person and then eventually moved into the body shop office, which I loved. During the day Don Dragani taught me the body shop business, which included working with technicians, adjusters and customers. At night I went to school at National University, and within two years earned a BA in Business. With a college degree and hands-on training, I was offered the position of body shop manager” as Dragani approached retirement age.

“We act like we’re family; we have fun on the job,” Ranck emphasizes. Barbecues and other social events are melded into the company culture. “We have our squabbles – we’re a family – but we get over it right away and get the cars out the door.”

And at Hine, all of these factors culminate in a pattern of staff longevity that delivers efficient repairs, a highly satisfied clientele, and a pleasant workplace. “I’ve had people leave – they think the grass is greener on the other side – and they come back.”

Multi-state operators

In April of 2015 the Hine body shop became affiliated with CARSTAR. Ranck says fewer dealerships are hosting in-house collision repair facilities, and those that still do have a competitive advantage if they form partnerships. Other dealerships should “get with the program” by embracing the plusses provided by these alliances, he advises.

“You’re starting to see it more because our industry is turning into an MSO operation,” according to Ranck. “If you’re involved with an MSO you can get feedback from other shops” in the network.

Improvements in Hine’s efficiency came at a quick clip. “When we first started with CARSTAR we weren’t lean,” Ranck recalls. “When CARSTAR came in they had a lot of procedures, and our cycle time went from 11 to 12 days down to seven days.”

Out on the shop floor, “we have production meetings twice a day; we reinforce what kind of day we’re having” in regard to meeting repair completion goals. The atmosphere of these meetings and other interactions is positive. “We let people know that they’re doing a good job – several times a day,” says Ranck, adding as almost an afterthought, “When they do something bad we tell them that too.”

The Hine shop’s ability to consistently come through with standout customer service results in five or six rave reviews on a daily basis. Morale-boosting rewards such as lottery tickets and the like are issued just as frequently to “everyone involved with that car, from the back-end to the front-end.”

A team approach is present throughout the entire operation to steer every job toward a positive outcome. “We put little red strobe lights on the cars that are targeted to leave on that day,” Ranck reports, citing yet another lean innovation that came through CARSTAR’s input. “If you see a red light, you know that somebody should be working on that car.”

If a customer expresses the slightest bit of unhappiness, every effort is made to promptly rectify the situation. The strategy pays off in that people who have voiced initial complaints often become repeat customers who are glad to refer friends and family.

Taking heed of lessons learned from Don Dragani, Ranck is intent on maintaining positive relationships with insurance providers. “You can’t be their enemy. You have to realize that you’re in a partnership, and you can’t put the customer in the middle,” he asserts.

“A lot of insurance companies use aftermarket parts,” Ranck continues, noting that the requirements are duly spelled out in the customer’s paperwork. “A lot of people don’t read their policies until they’re in an accident.” That said, “We make sure that the aftermarket parts fit like an OEM part.” Few alterations are made to force meeting the shop’s insistence on proper fit, form and function.

“We come to an understanding – we’re not going to do something that’s not right for the car. The insurance companies don’t want to use an inferior part; they also want to make sure the customer is happy. If you show the insurance company that there’s a problem,” says Ranck, “they’ll do it right.”

Procedures are additionally in place to maintain the utmost of strong relationships with the shop’s array of vendors. “We try to be on top of our stuff. You represent yourself as a business partner. You need to treat them fairly,” he says. “Don’t be over demanding. One of most important things to them is being paid them on time, and our payments are prompt.”

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