Consider adding undercoating services

March 18, 2016
Your decision to offer undercoating work will rely greatly on two factors: potential of the geographic market and choice of repair formats.

Someday when you have the time, try the following social/business experiment. Ask your friends who aren't in the automotive service industry what their thoughts are on undercoating. There's a great chance you'll see plenty of eye rolls, some looks of amazement and comments like, "People are still paying for that?" Next, make the same request to service industry members. Odds are you'll likely hear responses such as, "You aren't selling that now, are you?"

Where (and how) did undercoating get such a bad rap? A big part of this story goes back over 40 years to the oil embargoes and gas shortages of the 1970s. Americans turned to more fuel-efficient Asian imports, many of which quickly built reputations for having serious corrosion issues after just a few winters. (in all fairness, so did many of the economy models Detroit began delivering.) Automakers responded by building vehicles with more corrosion resistance. Many dealers also began undercoating their stocks.

By the 1980's and 90's, manufacturers were building vehicles with significant upgrades in corrosion prevention, including their own factory undercoatings. Some dealers still continued to offer customers deals on undercoating, often with significant cost markups. Some consumer advocates began declaring the extra coatings unnecessary and overpriced. Post-factory undercoating became synonymous with dealer greed.

Applying a new undercoating can be a key element in keeping older models like this one in service.

Considering this history, it might seem unwise for any shop to get into the undercoating game today. Yet there are plenty of good reasons to think otherwise. For one, consumers are keeping their automobiles far longer--well past the expiration of factory corrosion warranties. Also, erratic weather patterns are forcing a wider range of motorists to deal with harsh conditions that promote underbody corrosion. New technology is making it easier for more shops to engage in this work.

Are undercoating services right for your shop? Considering the following market information and standard undercoating steps.

Research and rewards

Your decision to offer undercoating work will rely greatly on two factors: potential of the geographic market and choice of repair formats. In the case of the former, snow belt regions and those near salt water offer the most obvious business potential. From there, work in other considerations such as the proximity of any competition and the number of vehicles.

You'll then need to decide whether to go with a franchise or offer a standalone operation. Each has its advantages. If you choose to run your own business, your start up investment should be smaller and you'll have greater operational freedom. Franchises like Ziebart offer benefits such as training, marketing assistance and national warranties. Being able to warranty work has long proven an attractive option that grabs customer interest.

Application steps

Equipment and procedures will differ from one product or franchise to another. Below are the basic steps for a full underbody coating.

Step 1. Begin by power washing the underside of the vehicle thoroughly.  Undercoating needs to be applied to clean metal. Dirt and moisture can impede coatings from drying correctly and building the proper protection.

Step 2. Remove the wheels to get full access to the wheel wells and avoid overspray.

Step 3. Raise the vehicle to a height on the lift where the application tech can comfortably spray (without having to extend his arm fully for long stretches of time.). Since the tech will need a clear view of the vehicle underside, make sure sufficient light is available.

Step 4. Place a drop cloth under the vehicle to catch particulates during rust removal. Doing so helps contain these particles so they can't be tracked or blown around the shop and become embedded in fresh paint.

Also, the cloth will pick up any drips of undercoating, which can remain sticky and difficult to remove from shop floors.

(Photo courtesy of Wagner) New available spraying technology allows shops to set up their own standalone undercoating businesses.

Step 5. Using pressurized air, blow dry the underside of the vehicle and, if necessary, move fans into the area to promote drying. Don't begin work until the vehicle underside is completely dry.

Step 6.  Tape over any exposed wiring or electrical areas that might come into contact with undercoating.

Step 7. Remove any rust and flaking paint. Scrape both away thoroughly. This part of the job often is the most time consuming, but it's also critical so take the necessary time.

(Photo courtesy of RRI Rust Repair) Removing existing corrosion often is the most time-consuming aspect of this work. Be sure to figure this into your pricing.

Step 8. Using clean, compressed dry air, blow off the area to remove dust and loose surface contaminates. Use a VOC compliant surface cleaner to remove any remaining contaminants.

Step 9.  If the underside of the vehicle is seriously oxidized, consider applying a coat of rust primer. Apply primer in thin coats that dry quickly.

Step 10. Place plastic over parts of the exhaust and any other vehicle region that gets hot when the engine is running. The issue here has to do with odor. If coating is sprayed on these areas, it will release a strong, usually unpleasant, odor the first few days the vehicle is driven.

Step 11. Load and apply the rubberized undercoating. Spraying technique will vary according to product and equipment, but expect to spray from 6-8 in. away with 50 percent overspray. Also, because the product is more viscous than anything else you're probably spraying, you'll need a slower spraying motion. Work carefully to ensure the product is applied for maximum effect.

(Photo courtesy of RRI Rust Repair) Raise the lift to a level where techs can spray comfortably and have a well-lit view of the vehicle.

Step 12. After the first coat, allow the undercoating to dry according to manufacturer recommendations. Then, apply a second coat. Take a second look at your work while putting on this layer. Cover any areas you may have missed the first time. Note that some products require four or more coats.

Step 13. Allow the final coat to dry and remove the protective plastic from the exhaust, along with any remaining tape. The vehicle can now be driven.

Final issues and setting your market

If this sounds like work you'd be interested in performing, there are several other factors you'll need to address:

- Pricing

If you're part of a franchise, the company will help set price structures. For your own operation, check prices with any nearby undercoating businesses. Then, work in your costs for products and labor. Since undercoating jobs can last from 1-3 hours, dependent largely on the amount of prep time, you may want to consider pricing flexibility that takes any extra labor into account.

- Personnel

Who will be your undercoating expert? This chore can be handled by techs, painters and detailers, depending on shop work schedules. In many cases, a detailer might be the best choice. Not only is there a better likelihood a detailer will be better able to schedule this work, but  undercoating services are ideal complements for detailing offerings. Shops can market all these services together and have the same employees master the work.

- Building a market

Marketing--especially building consumer interest and confidence--should be a key component of your undercoating business. As noted at the beginning of this article, many potential customers might be wary of this work. Some may bring up a point of contention that continues to spark misunderstanding in the auto service industry--namely, the claim that undercoatings can void manufacturer corrosion warranties.

ABRN examined warranties from a half dozen manufacturers and could find no evidence of this. Franchisers say this argument is simply a well-worn urban legend. They further contend that even if there were any truth to this matter, their own warranty would be in effect so the point would be moot. (They also note that many manufacturer corrosion warranties don't cover corrosion created by salt or sand.) Of course, if shops target older vehicles--those whose standard 36 month corrosion warranty has expired--this point shouldn't be an issue.

If consumers think the original factory corrosion protection is sufficient for the life of the vehicle, shops can point to several key points that dispute this position. First, particularly in snow belt areas, busy motorists have less time to keep their vehicles clean during harsh winter months. This allows a greater accumulation of corrosive substances more time to corrode metal surfaces.

Also, the poor condition of many of this nation's roads has created an environment where more stones and broken pavement can be kicked up under a vehicle and scar the metal or remove aging factory coatings.  This too translates into more corrosion much sooner on more vehicles.

Shops additionally will want to address consumers who think they can provide the same level of service on their own. Here, repairers can point to the difficulty of applying an effective, professional grade undercoating service in a home garage not equipped with equipment such as a power washer or a lift to allow easy access to the vehicle underside. If this work isn't performed correctly, the effect of the added protection can be diminished significantly. A trained repairer also can perform guaranteed work, usually in a far less time.

Ultimately, offering undercoating services may not be the right path for many repairers. In the right circumstances, however, this work can supply some much needed cash and be leveraged with other protection services to help build a link to a larger customer base. Repairers just need to be prepared to change customer attitudes as they change business directions.

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