Position yourself for sustainability

Oct. 2, 2019
Sustainability is the word I like to use when describing to shop owners what they must do to continue doing business in the collision industry. In my explanation, I try to illustrate how a shop owner must adapt to their environment to keep their business operating through future changes.

Sustainability is the word I like to use when describing to shop owners what they must do to continue doing business in the collision industry. In my explanation, I try to illustrate how a shop owner must adapt to their environment to keep their business operating through future changes. 

So, what does this really mean? The environment seen in some of today’s shops is not an environment that will allow continued operation in the collision industry and shop owners cannot rest on status quo — waiting to see what happens. Understand that status quo is not positioning yourself for sustainability, it’s just treading water in a rising river.

The first step in positioning yourself for sustainability is to align your shop with the requirements identified in the Collision Industry Conference (CIC) Collision Repair Provider Definition. You must take a good, hard look at your environment — your business. This must be your immediate focus. As you review the definition you will find it focuses on OEM repair procedures and equipment, with a strong emphasis on training. You will find that the training mentioned will come from multiple resources: OEM, Inter-Industry Conference on Auto Collision Repair (I-CAR), Automotive Management Institute (AMi) and others. Following the CIC definition will help you identify what needs to change to meet the expectations of our evolving industry.

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To remain successful in our industry, OEM repair procedures must be the entity that controls repairs in your facility. In the article “Achieving, maintaining OEM certifications will be key to sustainability,” I discuss how OEM certifications, as well as OEM procedures, are becoming more prevalent in our industry. While OEM procedures are not new, they have only been brought to the forefront in the last few years. Additionally, OEMs are making huge strides in directing customers to OEM-certified repair facilities. There are several vehicle manufacturers mandating that vehicles in their lease programs are only repaired at certified repair centers. If you are waiting to become OEM certified, you will be left behind and, sadly, once vehicle manufacturers reach their shop limit, you will be left out.

Acquiring OEM certifications is a painstaking, but important, step in positioning yourself for sustainability. With OEM certifications you become an authority on the repair processes required by the manufacturer for which you are certified. Learning how to review these processes and having the ability to document damages on a vehicle accurately is a must. I review this in “The need to re-program damage appraisers” (ABRN.com/reprogram) and "Documentation is key to communicating the collision repair process," explaining that repair operations must be described exactly as they are to be completed. This ensures the damage appraisal communicates effectively to all parties connected to the repair and allows you to take charge of the repair process by identifying each required step and documenting the steps individually through repair lines using the OEM repair procedures as justification.

As you learn to document the repair thoroughly and use repair procedures as justification, you will more than likely meet resistance from some parties involved in the repair process.  As I covered in "Effective collision repair negotiation starts with education/training" (ABRN.com/negotiate), it is important that we use this newly obtained authority with confidence and professionalism. Treating those in the repair process with mutual respect and using your knowledge to educate rather than criticize will often bring positive results.  As we rethink the way we discuss repairs and use OEM repair processes as the source of information, you should be able to move forward with little or no debate. There is an adage, “Those with the most information win,” so keep that in mind as you position yourself for sustainability. 

As I discuss in "Implementing non-negotiables can help set standards for your shop," our environment is a much better place when people know what to expect.  Setting standards based on your core values and not wavering allows the people around you to understand that your business is yours and you are in control. When your standards are “non-negotiable” you gain respect from your employees, those you do business with and most of all, your customers. When your customers know that you will take a stand for what you believe in, you gain their trust, which positions you well in your strides towards sustainability. Being selective on what you consider non-negotiable and focusing on core principles and functions that always need to be performed a certain way, prevents you from over-managing your operation. 

Once you reach this point it is time to ensure that the public knows that you are different than the repair facilities around you. As I mentioned in "Do potential customers know your difference," it is time to step back and take a look at your business to find those little differences you have in your business and capitalize on them through your marketing techniques. Make sure your marketing reflects your certifications, business model and customer satisfaction records. This is what will make you stand out among the competition putting you in position to excel against the others.

The bottom line is you must take control of your business today and start adapting to the things we discussed to continue to be successful in our industry. Don’t use the excuse: I have DRPs, I must follow their guidelines. I agree most DRPs have stringent guidelines, and to stay on those programs your shop must be within certain parameters. However, that does not keep you from taking control of your business; review your DRP agreements to see what you can manage and focus on those points. I believe you will find there is enough flexibility to move past the status quo, positioning yourself for sustainability.

I will be facilitating an interactive discussion about the changes in the collision industry and how they affect shop owners, the need to adapt to these changes and the consequences if shop owners do not move past status quo at SEMA this year. Register for “Position yourself for sustainability — RD4” on Nov. 4 from 3:30-5:30 p.m. at ABRN.com/positionyourself.

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