With six existing shops in the Philadelphia area and two slated to open in nearby New Jersey, Collision Care Auto Body Centers is consistently expansion-minded.
But ownership firmly believes in carefully eying each potential acquisition with a keen attention to demographics and other details frequently overlooked within the industry.
"As things progress, competitors will over expand and fail because they think they need to grow to stay alive," says President and CEO Val Fichera. "We need to grow slow and strong – not fast."
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The process includes a demographic analysis of a targeted location to discern a median household income of at least $50,000 per year within a seven-mile radius of the proposed site. Other elements include researching the patterns of collision claims to ascertain the needs of insurance providers.
"We like high-density, high-frequency areas coupled with outstanding retail locations," Fichera says.
Although Collision Care aspires to encompass 15 shops by 2020, the pace toward achieving that goal is measured and discrete. The more immediate planning typically involve a two- to three-year period of contemplation and study.
"We try to be quiet and sneak up on people," says Lou Berman, vice president of sales.
Yet when opportunities arise, the company is capable of making a move when circumstances present themselves. Such was the case when the owner of a shop in Abington, Pa., was eager to exit the business. "A store became available cheap, and we thought, 'That's a no-brainer,' and we couldn't pass it up," Berman recounts.
Although the shop was struggling and positioned a little too close to an existing Collision Care site, the transaction was completed and the site is now thriving in a twist of what the location's demographic figures might have indicated.
"It's wild how the territory plays out," says Berman. "For some reason, there were people who did not travel to that existing (Collision Care) store," he says, citing the acquisition's marketing viability despite its physical proximity.
"Some people simply don't want to travel in a specific direction," Berman continues. "You can't put your finger on it – it's like there's an invisible force-field or something. That (Abington) store didn't have an existing customer base per se, but we felt that if we got that place up to snuff that we could draw from that market." And the site's now-healthy car count has confirmed the merits of the decision.
Currently under re-construction and slated for a June opening is the company's first foray across the Delaware River into New Jersey. Already covering aspects of Philly's northern, southern, central and western marketing spheres, east of Philadelphia is New Jersey. "We have a lot of people who come back and forth from Philadelphia and New Jersey, so it seemed like a good area for us," Berman says.
Collision Care's preliminary due diligence was once again applied over a period of careful deliberation, culminating in the acquisition of the former DeSimone BMW dealership in Marlton, N.J.
A complete renovation of the existing structure will result in a 16-employee shop boasting 18,000 square feet of production and office space sitting on four acres of prime real estate along heavily traveled Route 73.
A second Garden State site set to open next year in Mullica Hill is the company's first new facility constructed from the ground up. Located on six acres of land adjoining Route 322, the 12,000-square-foot shop will house a staff of 12.
"Our business model consists of outstanding locations and the best training on methodical processes," says Berman, stressing also that stellar customer service and a satisfactory experience is always "put in front" of the processes in place.
"Our marketing program is yielding better-than-ever results in a stressed economy," he reports. "Our most recent CSI store results, as calculated by an independent third party, are now in excess of 98 percent."
Such success originates from more than 20 years of "trial and error" in perfecting the business, and Berman notes that "you know you're on the right track" when competing shops are taking an interest in trying to duplicate Collision Care's strategies. "Imitation is the best form of flattery," he adds. "And it keeps us pressing toward new ways to differentiate ourselves: There are only so many ways to fix a car, you know."
Above and beyond
A key indicator of that differentiation is assembling a top-notch staff, according to Fichera. "We seek to go above and beyond, from our sales plan to our operations initiatives."
The core management team, consisting of Berman and Dale Shellenberger, "allows us to refine, observe and create," says Fichera. "Within this process we often agree to disagree, but the wheels are always turning; healthy banter occurs on a daily basis."
Berman gets credit for his "passion for the industry" and an ability for "creating relationships and fixing formerly strained ones," Fichera continues, praising Berman as "one of the most creative miscellaneous X factors you could find."
Fichera describes Shellenberger as "the analytical machine" as he creates, revises and implements the various processes and procedures "with a drive to continue to produce, go higher, reach farther, improvise, adjust and adapt."
Shellenberger coordinates operations while overseeing employee training and monitoring each of the chain's shops. "He is tireless. From DRP (direct repair program) compliance to ever-changing protocols in response to our providers, Dale is the gatekeeper for all systems and procedures. All of our insurance partners respect Dale and his ability to effectively exceed expectations at all of our locations," Fichera says.
Collision Care participates in more than 20 DRPs that comprise about 70 percent of the sales volume.
"DRPs are a big part of our business," says Fichera. "We do, however, stress how important the customer is. I don't mean from a pricing point, but from a total care perspective. We often see customers change insurance companies for pricing, but once they get our service they usually come back here no matter who their carrier is."
To maintain good relationships with insurers, "we make their goals our goals. If what's important to us is important to them we have win-win scenarios," he points out.
"Let's face it, they have objectives. If we hit their objectives, we make their lives easier. If they do well, they get promoted. When they get promoted, so do we," says Fichera, referring to the value that comes from insurer recommendations.
Quality of life
Paid training and a focus on being sensitive to employee "quality of life" concerns are critical for delivering excellent operations and exceptional customer service, according to Fichera.
Collision Care has "the best training in the industry and there's no budget. That means we spend what we have to to get the results we want. If someone is failing it's a will issue and not a skill issue."
The company is seen as a desirable place to work. "We get calls and emails often for openings," he says. "The funny thing is, we even get a lot of people who work here for less money because they are part of something and get it back in training and support," Fichera says.
"We recently hired staff who took pay cuts to leave where they were to come on board. They really like the investment we make in them, which ultimately makes for a better 'quality of life,' which you can't put a price tag on. How we train our co-workers makes their job easier. When their job is easier, they can take a day off or go on vacation and the store won't fall apart. Of course," he adds, "money is important – but what good is money if you're miserable and can't wait to go home every day?"
Ongoing innovation is ingrained throughout the company. "The staff is so accustomed to changes because things are improving all the time. Change is part of our culture, and our culture, as our teammates see it, is change. Nothing is so perfect that it stays the same all the time and is still effective," Fichera says.
The business was established in the 1930s by Fichera's grandparents, who instilled in him sound business practices and a "work now, play later" attitude along with an always forward-looking appreciation of the benefits that can accrue by relying on others for advice and assistance.
"No one can be alone, and the owner's vision isn't always the best. You must listen to your staff and let them run with ideas. You grow your core people first. Make mistakes, then grow the company," says Fichera, adding that he has long been an avid student of advanced industry-specific classes, as well as a dedicated reader. His efforts have produced a clear vision of how a cooperative management strategy can produce a pattern of win-win opportunity for all involved.
