Episode #124 - No one is coming to save you!

Episode Notes: 

In this week’s Mind Wrench Podcast episode, we'll discuss the importance of attending industry events and investing in education to enhance your understanding of running a better repair business.

As a collision repair shop owner, it's vital to recognize that technology is advancing at a rapid pace, and it's crucial to keep up with the latest advancements to repair vehicles correctly and safely. By attending industry events such as trade shows, seminars, and training sessions, you'll have access to the latest tools, equipment, supplies, software, and technologies that can improve your business operations.

Not only will you learn about the latest advancements in the industry, but you'll also have the opportunity to connect with industry leaders, shop owners, paint or equipment manufacturers, and software providers. By networking with these individuals, you'll gain insights into the solutions they have implemented to tackle the challenges that come with running a collision repair business.

Moreover, by investing in your education, you'll become better equipped to document and upload everything needed to the RO file to ensure you're properly compensated for those repairs. It's no longer enough to play "victim" to the old strongarm methods of the carriers. You need to take control of your business operations and validate your compensation by following an effective process of disassembly, discovery, research & complete OE recommended (or required) repairs, including all calibrations and safety procedures.

By taking these steps, you'll be part of the solution to the challenges that come with running a modern-day collision repair business. You'll also be supporting the industry and inspire other shop owners to be part of the solution.

The message is clear… No one is coming to save you! You need to take control of your business operations and invest in your education, equipment & operations to keep up with the rapid pace of technological advancements. By participating in industry events, networking with industry leaders, and investing in your education, you'll be better equipped to run a successful collision repair business that produces safe and proper repairs. So don't wait any longer - take action today and make your business better!

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Transcript

Episode #124 – No one is coming to save you!

As I wrap-up my experience and travel back from another great, informative collision conference, I just wanted to share some thoughts & observations with all of you, while they’re still fresh in my mind.

One of the great things about attending these industry events, is how much you are able to learn, and absorb from those around you for those couple days. I have really kinda dove in deep over the last couple years, on where our industry is heading, more than where we are currently or have been in the past, rather what we can do collectively as a group or an industry, to make things better, to advance the ball, to ensure we are really repairing vehicles correctly & safely, to be more proactive on setting ourselves up for success, and to have better control over our futures. 

The advancements in today’s vehicle technology, the amount of interactivity with it’s surroundings these vehicles now utilize, how much ADAS calibrations and OEM recommended repair processes are now “mission-critical” to ensuring today’s collision repair facilities are producing “safe & proper” repairs, is something I personally feel, our collective industry, needs to better understand… and improve it’s game! 

A couple very cool things I have noticed is:

1.    The amount of information, education, open-forum panel discussions & training available to anyone in this industry if they choose to attend any of these events… there is also so much data available to those that never venture out from their shops, they just need to look a bit. There are literally seminars, webinars, local trade shows, training events, and industry conferences happening all over the US, almost every month of the year… now we all know it shut down during the pandemic, went virtual for a while… but since things opened back up, these have been very well-attended most everywhere! If you’re looking to see what the latest tools, equipment, supplies, software and technologies are available… and have the ability to talk directly with the business owners or manufacturers reps… look no further than the next available conference near you (for most it’s worth driving a state away or two!)

2.    Something else that just kinda blows me away every time I attend one of these events, is shear amount of people (industry leaders, shop owners, paint or equipment manufacturers, software providers) that are always there, spending their own valuable time, energy & ideas, to be part of the solutions… most spending lots of time traveling and attending on various boards (with zero compensation), it’s just amazing their devotion to our industry… and I have met some of the coolest people I know now, from these events & have formed many wonderful relationships, that are sure to last a lifetime.

 3.    There are some very engaged shop owners out there… attending these events, educating themselves on what is required to repair vehicles correctly, investing in the tools/ equipment & training necessary to perform these repairs, efficiently documenting and uploading everything needed to the RO file to ensure they are properly compensated for those repairs (regardless if it’s the insurance company or vehicle owner paying)… no longer playing “victim” to the old strongarm methods of the carriers, and validating that compensation (not negotiating)… but also SUPPORTING the industry that has provided their livelihood… volunteering some time to help, serving at some level, encouraging other shop owners to be part of the solution, and not just complain without looking for better results… it really is inspiring to witness this transformation in our industry!

 4.    Now I also realized while attending the last couple events, while I was inspired by some of the new tools, technologies and vehicles that are coming down the pike, I was less than enthused with the reality of where we are as a nation of repairers… we are still so far away from where we should be by now. Very, very few shops are actually fixing today’s cars 100% correctly.. probably less than 5% of repairers follow an effective process of disassembly, discovery, research & complete OE recommended (or required) repairs, including all calibrations and safety procedures.

I know many great men & women that operate very good collision centers, and are honest folks, that are NOT in that 5%, but are trying to do better, or will say “we’re doing the best we can to keep up”… but unfortunately, that won’t hold-up in a court after an “improper repair” has led to someone getting hurt… or worse!

Technology is NOT going to slow down & wait for you to catch-up, and vehicles aren’t going to get easier to repair…no, they will only continue to get more complex.

I want this message to stick in your head…NO ONE IS COMING TO SAVE YOU!

This not only applies to your business, but your personal life as well.

In my opinion, part of our problems beyond the shop, is the simple fact that as a nation, we have become extremely lazy… seriously… although we feel like we are always busy-busy-busy, we have become more complacent & lazier than a decade ago. We have turned into a point & click society…”OK, I ordered it an hour ago, where is it?”

We don’t go to the grocery store anymore to get our needs for the week, no, we order online & drive-up, where they bring the groceries right to the car… sometimes we just have them deliver it to our house… same with fast food, or damn-near anything we want from Amazon… we stream movies or TV shows on demand, we do our banking online… we can get anything we want, anytime night or day..click-click-click…easy-easy-easy. We have gotten fatter and more out of shape by clicking that “EASY” button, over and over and over again!

 Well the truth is, nothing valuable or worthwhile comes easy.. NO…

It takes hard work, effort, grit, determination, and dedication to accomplish goals and achieve higher levels of performance, higher levels of quality, productivity, profitability or customer satisfaction… there is NO EASY BUTTON… no elevator to the top floor… NO, you have to take the stairs!

You, the business owner or leader, or just the CEO of your life, are the ONLY ONE responsible for your success or failure, in business or in life… you are 100% responsible… that’s it… nobody else, just YOU!

Like I said… NO ONE IS COMING TO SAVE YOU!

Whining, bitching, complaining, pointing fingers, or shifting blame or fault to others is futile and NEVER fixes anything…

It’s not the insurance carriers’ fault…

It’s not the manufacturers, or suppliers, or government, or your family’s, or anybody else’s fault…it simply starts & ends with YOU!

Maybe you’re thinking you’re just way too overwhelmed with all this change in technology, you don’t want to make investments that are needed for today’s repairs, you don’t have the energy or drive to continue staying in the repair business and you’re just waiting for one of the big MSO’s, National Accounts, or franchise operators to pop-in and give you a great offer to sell out, right?... sounds GREAT… and let’s say they DO ring you up and ask if you’re interested in selling… do you even know what the value of your business is? (the real number, not the one in your head or what your CPA says it is)… chances are (and history will confirm) that real amount is probably MUCH LOWER than your expecting!...

  Speaking of your numbers, what numbers are you sure about (beside the checkbook balance)?... do you know your monthly gross sales numbers?... what about GP% on those sales?... what about your “net” income? – do you know the calculations that produce that number?

          What about the national benchmarks on KPIs?

What about your “breakeven point”?

Do you monitor your P & L each month?.. are they coded correctly?... do you just leave this up to the CPA or bookkeeper that may not really understand the collision repair business? 

Do you know how to read a P & L? – Do you even have one??

The cold, hard fact is, you may be slowly going out of business and don’t even realize it! (here’s a quick test, do you know what % your net income is?... is it single or double digits?) … see what I’m saying? Without having a solid understanding of your financials, you won’t even know until it’s much too late.

If this sounds familiar or hits a nerve with you (like a bad root canal), don’t despair… you aren’t the only one (unlike what the adjuster says when you ask for time on measuring steering columns or glass clean-up) there are literally thousands of hard-working repairers without a handle on the financial side of their business… but, that doesn’t mean you can continue to ignore it…that doesn't excuse you from getting help to control your financial health.

Remember… NO ONE IS COMING TO SAVE YOU!

Unless you’re a resto shop or specializing in 80’s-early 2000’s vehicles, there’s probably about a 95% chance you’re NOT fixing them safely or correctly.

I know that may sound harsh, and you may think I’m off my rocker, but I say this with love & respect for my fellow industry mates, and I believe industry experts would attest to what I’m saying here, a very slim percentage of today’s collision shops are repairing vehicles of the last 10-15 years to what OEMs require to be considered a “safe & proper” repair.

Now there are a few that have educated themselves & their teams on the advanced technologies used in today’s vehicles… have invested in correct equipment, tooling, training and certifications required to do these repairs… and have learned how to properly document everything completely, so they can not only be justly compensated for those repairs (whether paid for by the carrier or customer), but provide protection to their customers, knowing they did everything required to bring that vehicle back to OE specs… AND actually improved both their revenue and gross profits by doing the right thing!

To be clear… none of this is easy… none of this is quick… none of this is cheap… BUT, it IS absolutely necessary to not only survive, but to thrive in this business now & in the future… it certainly CAN be done!

That’s the good news, YES…it CAN be done…it only takes a decision and a commitment from you… you can start moving forward, making improvements immediately.

How do you eat an elephant?.. one bite at a time, right?

Start with some basic concepts like:

Acknowledgement: admit to yourself that you do have some areas needing improvement

Discovery: take a good hard look at all aspects of your business, see where the holes are & note what to work on

Seek resources: find others that can help you with the different areas of business that need attention-use your network, vendors, suppliers, etc.-whether it’s tools-technology or education, find the resources that will fuel your improvements.

Use resourcefulness: sometimes you’re not lacking resources, you just may be lacking resourcefulness... the ability to get creative & solve some of those issues yourself or use your tenacity to push through the hard things

List your needs/ goals: big or small, put everything on that list and then jot down some short & long-range goals

Prioritize: make it easier to focus on one thing at a time-start with what moves the needle furthest first

Build a plan: you’ve already done the work of capturing and prioritizing what needs to be done & what resources you’ll need to accomplish… now just map it out!

Start small: the first small win helps drive the confidence to tackle the bigger tasks - Build momentum.

Share your vision with your Team: 

 There is no magic wand, silver bullet, short cut or “easy button” or company you can hire to do it for you… it is truly 100% in your hands, and your hands alone.