Nagy's Collision Specialists is an ABRN 2012 Top Shop

It's probably time to stop being surprised by anything that Doylestown, Ohio-based Nagy's Collision Specialists does. Returning for its second straight year as an ABRN Top 10 Shop, this operation seems to be built on the unexpected, and is intent on building its unique, rural multi-shop operation by taking unpredictable, though always logical, moves.

In 2012, Nagy's burnished their considerable national reputation by setting their sights on the dealer service industry.

In September, Nagy's took over the collision repair business of a large Chevrolet dealership in Akron, Ohio, which was their first shop in the more densely populated Summit County.

For co-owner Ron Nagy, the decision made obvious good sense. "We've been looking to grow this way [with a dealer], and the opportunity came up," he says.

There is a historical precedent here for Nagy's. Six years ago they re-opened a dealer shop under the Nagy's brand at the request of the dealer.

While Nagy says he's remained on the lookout for a similar opportunity, when ABRN spoke with him last year he was more focused on acquiring other independent shops or building his own.

Why the shift in course? Working with dealers offers some particularly appealing expansion factors. For an MSO like Nagy's, it's the least expensive way to add locations. The customer base comes built in since they're at the dealership to either buy vehicles or have them repaired.

It's also an area of growing opportunity since dealers increasingly are on the lookout for help managing this difficult revenue stream. Some dealers simply want to offer it to their customers without have to deal with all the challenges that collision work presents.

"It benefits both of us. They can offer body repairs to their customers, and it's very manageable for them since all they have to do is collect lease money," Nagy explains. "Meanwhile, we get to do the work and grow in a new market."

This particular new area is a surprising departure for Nagy's since it carries the business outside its traditional rural environment and into a sprawling suburban area booming with new housing developments and businesses, including a number of new vehicle dealers.

Nagy said he expects to see plenty of work, but he's prepared for this challenge by keeping much of the previous shop's workforce in place.

"We invited them to work for us," he says. "We told them what we expect and how we work. Those who will buy in have a good job waiting for them."

So far, says Nagy, they are. That's not so surprising since Nagy reports one of the biggest selling points he offers them is structure. "No one wants to operate in chaos," he says. "We provide structure, and they love that."

A big part of this structure is built on Nagy's training requirements. All technicians must reach I-CAR Platinum status. Nagy's pays for all I-CAR classes and for employee time to attend the classes. Every Nagy's location is an I-CAR Gold Class shop. Employees also are ASE certified, and shops are Blue Seal or in the process of earning Blue Seal certification.

The bulk of the structure Nagy's offers is provided by a highly detailed electronic set of standard operating procedures known as Nagy's Ultimate Customer Experience or UCE. The UCE is a "living," constantly growing, document that sits on every Nagy's location's server. It's accessible to every employee and documents every stage of a repair along with the service to be delivered to Nagy's customers. Changes to the UCE are made at Nagy's corporate office, which automatically updates the UCE at every location.

The continuity provided by the UCE, along with training requirements and Nagy's investment in business practices such as regular management and production meetings has long been at the heart of Nagy's ability to successfully add locations.

This continuity now is at the core of their ability to provide dealerships with a true turnkey solution for offering collision repairs.

For 2012, the surprises don't end there for Nagy's. They're investing more in social media and ramping up their Internet presence. That may sound odd for a business that was founded almost 40 years ago and is closely tied to mostly rural, small Ohio communities. To Nagy, it makes perfect sense.

"My father built this business on word of mouth advertising," he says. "Word of mouth is done by social media these days."

Notably, Nagy himself never seems surprised by any changes in the industry and adjusts his business accordingly. Providing surprises, instead of being taken by surprise, is a hallmark of this Top Shop.