Stock up for day 1 in a new location

May 29, 2015
Get the equipment, employees and business in place that you need for a new location launch.

In two previous columns, (Ready, set, grow, April 2015; Location, location, location, May 2015), I discussed some of the homework and steps that go into how we choose another shop location, and how we work with an architect and contractor to convert a building into a “Keenan” shop.

The next important step is to ensure the new shop is equipped like our other shops. We have specific frame and measuring equipment and welders we prefer, for example, so that when technicians move from one of our locations to another, they know how everything works. We similarly stock the new shop using our approved product list. Our jobber has that list – which includes only about 400 SKUs including tints – locked down so no one can order anything that’s not on the list. Again, this ensures consistency from one location to another. Techs know exactly, for example, what grits are used to finish all body work.

But as the new facility itself is being converted and equipped, it’s also time to ensure you have the employees and the cars you need there on Day 1.

Our ability to brand an existing building is an important part of this process. One key step for us is to get signage on the building as soon as possible. That gets people talking. When we opened our most recent new location this past February, the sign had been on the building since the previous November. It’s a high-visibility location, right of a main interstate, so getting signage up early helps build name recognition.

But beyond signage, we prefer buildings that we can also brand in other ways, to look like one of our buildings. At times, that can be a challenge and require some creativity. The upper portion of many of our buildings has a green aluminum façade. But unless you’re growing through greenfields, you’re not going to get a cookie-cutter look. So at one location, we just painted the aluminum pitched roof green.

The name recognition and reputation we’ve built in our market helps bring work to a new location, but we also arrange to be on several direct repair programs at a new location as soon as we open. Right at the point when we’ve established a firm opening date for a shop, our marketing director is out talking with insurance agents and other referral sources in the area. And we generally have a “grand opening” event at a new location within a few weeks or months of opening.

But a steady supply of wrecked cars won’t mean anything if you don’t have the staff there ready to handle them. First and foremost, you need to have a manager to run the location. I always tell my managers to be training their replacement. That way, when we add a location, a successful manager at one of our locations can move to the new location while leaving behind someone who is ready to manage the existing shop.

That means that when you’re in growth mode, you’re at times going to be a little top-heavy with people. We sometimes have several people who aren’t yet managers but are ready to undertake that position. If I opened two new locations tomorrow, I have the management ready for them. There’s a cost associated with that, but it’s a necessary one when you are growing and adding locations.

When we open a new location, we put other Keenan veterans in there with the manager as well. At least one body tech, painter and customer service rep (CSR) will come from our existing locations. As the first person the customer sees, the CSR especially has to understand “the Keenan way.”

Because all of our locations will have to back-fill these positions, we generally try to pull no more than one or two people from a location when we’re staffing the new location.

And like many MSOs, even before those employees are working on the first cars at the new location, we’re checking demographics and traffic counts on various other locations, looking for the one that will become our next new shop.

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