“To sum it up in one word, it’s listening – sizing up the goals of the organization,” says Nick Booras, vice president of sales and marketing. From ownership on down among the 300-plus employees, the entire company keeps an ear close to the ground to ensure that they deliver the best outcomes for everyone involved.
Included in this strategy is an ongoing adherence to the 5S Lean Process. Originating with manufacturing executives in Japan following World War II and known as Kaizen, meaning continuous improvement, the concept roughly translates as sort, set in order, shine, standardize and sustain. Famously applied to the automotive industry by Toyota, the five-step concept aims to reduce waste and streamline operations to ultimately increase efficiency and productivity.
“When we adopted it we went through the history of it, and we’ve done very well with it. It separates us from the competition,” Booras says.
“We have standard operating procedures that have proven to be very efficient, so we can come in at a good price point,” he explains. “It’s proven itself time and time again with the results.”
Being keen on lean drives a cooperative spirit in dealing with the 23 direct repair program (DRP) affiliations and other insurance providers. “We want to help lower the car rental cost, lower the claim cost and increase customer satisfaction, which in-turn increases policy retention” for the carriers.
“With our insurance partners we tailor to their needs and keep them well informed,” says Booras. “We also make sure our employees understand what is important to our insurance partners and that we have done everything we can to go above and beyond the vehicle owner’s expectations.”
Making use of well-appointed in-house conference facilities, the company conducts continuing education courses for insurers along with presenting an array of the latest training programs for the staff, which holds ASE Blue Seal certifications and meets numerous OEM and industry gold standards.
When a worker hires on he or she begins their career at the state of the art training center. “In addition to their individual specialized training, all new employees are taught the importance of customer satisfaction. Doing whatever it takes to please the customer is stressed from the first day,” he notes.
“They’re always educating themselves in working on tomorrow’s cars,” Booras reports. “Our employees need to know what they’re doing and stay in tune with that, and that’s very challenging because there’s a lot of courses that you have to go through.”
Citing statistics that a given driver typically experiences a wreck every seven to nine years, he observes that “it’s like going to a doctor’s office – you don’t want to go very often, but when you do you want to see the certificates on the wall.”
Continuous improvement carries through to making the repairs as painless as possible regarding the comfort levels of today’s drivers. “Their expectations in the lobby are different than in the past. They don’t want to sit around waiting, they want WiFi and a thorough explanation of what’s going to happen to their vehicle,” he points out.
Out on the shop floor, waterborne paint is applied to assure that each customer’s vehicle gets the finest finish. “It was not terribly difficult to switch to; our management really understood the investment,” Booras recounts. “We had a good partner in Sherwin-Williams, and when we went through it we made sure the leadership was all on board with it.” Sherwin-Williams experts were at every location on a daily basis to ensure that the painters were at ease, fully versed and confident in the process.
“With laser alignment machines, downdraft paint and bake booths, computerized estimating systems and much more, Collex remains always on the cutting edge.”
Sound decision-making
It was in 1975 that founder, CEO and President John Gagliano opened his first body shop in Warren, Mich. A decade later came his second shop in Sterling Heights, Mich. The company name was changed from Gagliano’s Auto Craft to Collex Collision Experts as the business continued to expand into new territories under the forward-thinking direction of John and his siblings: Rob Gagliano is the chief operating officer, Rick Gagliano is president of human resources and Grace Gagliano Lopez serves as chief information officer.
A full-time, three-member information technology department is continually developing and refining systems and programs to keep Collex ahead of competing shops. An in-house-designed management system provides what is described as “incredible data, which allows company managers to make sound decisions and efficiently operate the business.”
“The company’s growth is directly attributable to its high quality of workmanship, excellent customer service and the company philosophy combined with its code of conduct,” says Booras. “The motto, ‘Doing nice things for people and the cars they drive,’ is more than the company slogan, it’s the company philosophy.”
This mindset is further enhanced by “staying committed to our standard operating procedures and our value statement of always treating our customers and each other with honesty, respect, trust and excellence – ‘love your neighbor as yourself,’” according to Booras.
Younger people entering the workforce who express interest in pursuing a body shop career “tends to be demographic that’s getting smaller,” says Booras as he explains the company’s associations with several technical schools and its sponsorship of Student Career Day at the 2014 Detroit Autorama. Efforts included a raffle at the display, with a spray gun and cordless tools being warded as prizes.
“We’re making sure we’re educating the leaders of tomorrow in this industry. The Autorama was a great recruiting event for us,” Booras says. “It was incredible; 650 people a day came by our booth – it was pretty exciting.”
Among the sought-after qualities is a desire to learn and succeed. “As long as they’re coachable they’re promotable. We look for a great attitude and a good heart.”
More than 70 percent of the sales come through referrals and repeat business, emphasizing the importance of providing the best in customer service. The endeavor is augmented by an aggressive advertising program covering radio, television, strong Internet initiatives, sports sponsorships and charitable contributions.
The company’s support of Detroit’s professional hockey team is especially effective. “The Red Wings are an important partner of ours. We’re trying to be the leader in our industry every day, and so are they in their industry. There are a large percentage of people here who are Red Wings fans, and the two pair up really well,” says Booras.
“We make sure we’re engaged with the community. We’ve served almost a million customers, so it’s easy to be connected,” he continues. “TV is good for brand awareness when we’re launching a new store or advertising campaign.”
Radio spots air on a shifting variety of formats depending on the type of promotion in play. Sports-talk is a consistent winner and oldies stations are a good driver when Collex’s involvement with the famous Woodward Dream Cruise is being highlighted. “The Christian Radio Network down in Florida has been an important partner of ours as well.”
Yet the online aspect generates the most intriguing returns, according to Booras. “Who is in front of that TV is a guess – who is in front of their computer is known. It’s a captive audience, digital tends to be more of an engagement – they’re interested in what we have to offer.”
With company apps available for posting on cell phones and tablets, “mobile is the way that everything is heading,” he reports. “We’re on all the social platforms and we’re targeted geo-specific to every community that we serve. It’s good to keep people informed on other things, too, such as preventative maintenance and safety.”
Booras goes on to reference the company’s history as being a top performing repair destination. “We have longstanding relationships going back for well over 30 years, and that really helps with the marketing.”
When Collex began expanding into Florida in 2007 it became apparent that this positive reputation was on the move in the Sunshine State.
“We have a lot of Michiganders in Florida,” he says. “Our dealership and fleet partners recognize our name from Detroit, and they like to spend their winters there and return here (for the summer months).”
Year-round Floridians are impressed by John Gagliano’s decision to settle in the area, which brings home the point that “you’ve got some skin in the game and you want to service them.”
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