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Growing existing store sales and profit through operational improvements across the CARSTAR network, including improved measurement of performance metrics and KPIs, accelerated training, repair process efficiencies and enhanced marketing programs.
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Adding new stores through an aggressive expansion effort in 2013, led by the industry’s largest business development team. CARSTAR expects to continue to add many more new stores next year, but Byers stressed that they are focused on adding high-quality, high-performing stores to complement their current network.
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Delivering new MSO insurance relationships by strengthening the network of multi-store operators who can deliver repeatable outcomes and best-in-class KPIs, provide centralized management system data about their stores and deliver excellent, measurable customer satisfaction.
- Fully utilize the CARSTAR Solution, the proprietary centralized management system designed to help stores improve operational efficiency, financial management and data measurement.
“To succeed, we have to grow existing store sales and profits, add more new stores through organic growth and store conversions, deliver new CARSTAR-wide MSO insurance programs and continue to fully utilize the CARSTAR Solution, our technology based management system,” said Byers.
Among the driving forces shaping CARSTAR’s future are changing insurance industry’s expectations that collision repair companies deliver concentrated scale with bigger networks; self-management; reliable, superior performance against the KPIs; and streamlined contact with a single point of contact rather than individual repair shops.
Guests at the CARSTAR conference included the Afterburner team of fighter pilots who deliver leadership seminars and a general session address by five industry experts:
- Greg Horn, Mitchell VP of Industry Relations;
- Robb Knott, Nationwide Insurance Claims Director;
- Jeff Peevy, I-CAR Director of Field Operations;
- Vincent Romans, CEO of The Romans Group LLC; and
- Matthew Ohrnstein, Managing Director of Symphony Advisors LLC.
CARSTAR also welcomed claim executives from a majority of the top 20 personal auto insurers to the conference activities including an Insurance Symposium on Sept. 23.
“This year’s conference was designed to provide store owners more resources and more opportunities to learn from and interact with business and industry leaders,” Byers said “We’ve had a positive, productive four days together at the collision industry’s largest gathering of store owners, vendors, insurance companies and industry experts outside of SEMA or NACE. We have great momentum and our CARSTAR network is leaving conference with a renewed focus on delivering world-class repair quality, KPIs and customer service.”
Current year on track
CARSTAR said it surpassed its financial objectives for 2011, delivering $600 million in sales, double-digit same store sales increases, a record year for rebates at $3.5 million and double-digit growth for corporate managed insurance revenues, and it is on-track to do so again in 2012.
For the 2011 fiscal year, CARSTAR was ranked 19th out of 150 regional companies by the Kansas City Business Journal, which recently published its annual list of top private companies in the region by gross sales.
“This year, we are optimistic about the growth opportunities in the marketplace, both for our current store owners and new store additions, and look forward to fulfilling our potential as North America’s largest MSO network,” said Byers.
Through the first two quarters of 2012, CARSTAR has seen business at its store locations stabilize and, in many cases, benefit from spring and summer storms. CARSTAR said its stores were cushioned from the mild winter, relative to other independents, with assistance from purchasing programs, rebates, management assistance and brand/marketing support that helped them improve operational efficiency.
In 2012, CARSTAR forecast adding 40 new stores in the system, and has announced 24 new stores through August, a record for the company. CARSTAR stores opened for business in California with several locations in 2012.
“Consolidation is changing the industry, and independent owners have three options – go it alone, sell out for a negotiated price or join a network that allows them to retain their independence but benefit from resources, support, buying power and management expertise of a larger network,” said Byers. “CARSTAR offers that third option, and we believe it’s the best for the industry overall and for the owners.”
