March 31, 2025 • 22 mins
Episode Notes:
The never-ending rollercoaster of collision repair business has taken another dip, and shops across the country are feeling the pinch. After years of unprecedented backlogs following COVID, the industry is experiencing a significant slowdown that's becoming the talk of every industry gathering. But rather than panicking, this moment presents a unique opportunity to strengthen your business foundation.
This slowdown stems from several converging factors that are well beyond our control… however, successful shop owners recognize that these cyclical downturns are inevitable—and can be leveraged to your advantage.
We explore 4 critical areas every collision center should focus on during slow periods.
1st, finding creative ways to fill those empty stalls—from municipal vehicle contracts to specialty refinishing work that keeps your paint booth productive. 2nd, strengthening your marketing efforts, as data shows shops that maintained consistent marketing during busy times are significantly outperforming those who didn't. 3rd, implementing shop improvements that often get neglected during busy periods, like developing SOPs, optimizing shop layout, and conducting thorough financial reviews. Finally, catching up on training and education that positions your team to handle the next wave of technological advancements.
The most successful shops view these slowdowns not as setbacks but as strategic opportunities to prepare for the inevitable upturn. By investing in these four key areas now, you'll be positioned to outperform your competition when business rebounds… because as history has shown us, it always does!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, guess what?
Our cyclical business slowed upagain, right, but this time
it's a major talking point atindustry get-togethers and in
the shops themselves.
Some are alternating tech dayson or off, or closing a little
earlier, some are getting alittle bit more creative and
some haven't missed a beat, buteverybody seems to be freaked
out right now and concerned fortheir futures.
(00:21):
So let's everybody stop, take adeep breath and bring the blood
pressure back down a bit Now.
Take this opportunity to see ifwe can leverage this little
break in the action, takeadvantage of the slowdown and
actually set ourselves up forthe eventual comeback.
Speaker 2 (00:43):
Welcome to the MindWrench podcast with your
host, rick Sellover, where minoradjustments produce major
improvements in mindset,personal growth and success.
This is the place to be everyMonday, where we make small
improvements and take positiveactions in our business and
personal lives that will make amajor impact in our success,
(01:03):
next-level growth and quality oflife.
Speaker 1 (01:12):
Hey, what's up everybody.
Welcome to the MindWrenchPodcast.
I'm your host, Rick Silover.
Thanks so much for stopping in.
If you're a returning listenerand haven't done so already,
please take a minute and clickthe follow or subscribe button
and then rate and review theshow.
When you rate and review theshow, the algorithms for Apple,
Spotify, Google Podcasts,iHeartRadio, Amazon Music and
(01:32):
all the other platforms will seethat it's valuable and show it
to more people that have neverseen it before, and hopefully it
can help them too.
I would really, really reallyappreciate your help, sharing
this word with your friends andfamily as well, and if you're a
brand new listener, welcome.
I hope you find something ofvalue here that helps you in
your personal or professionallife as well.
Please make sure to click thesubscribe or follow button so
(01:54):
you never miss another episode.
This week we're going to talkabout what do we do when our
workflow finally slows down.
Our collision industry businessmay be very unique in many ways
, but like most servicebusinesses, it's very cyclical
in nature.
We used to be able toanticipate our workload by the
seasons, right, you know slow inthe fall when school starts and
(02:16):
have a nice blast of work whendeer hits here in the top half
of the US We'd be busy in thewintertime, except for the
holidays, then a little sporadicin the spring and much slower
when the summer finally settlesin.
Anyone that's been operating acollision center for at least 10
years or so knows this and hassurvived the ups and downs, the
rollercoaster ride of crazy busyto hope to god.
(02:38):
Something shows up here becausewe got nothing scheduled for
next week, right?
Well, all that went right outthe window during COVID.
We went quickly from nobody onthe roads during the lockdowns
and shops dead across the boardto busier than ever, growing
backlogs measuring in months,not weeks, and we've stayed
right there up until about thefall of 2024.
(02:58):
Well, guess what?
Our cyclical business slowed upagain, right, but this time
it's a major talking point atindustry get-togethers and in
the shops themselves.
Some are alternating tech dayson or off or closing a little
earlier.
Some are getting a little bitmore creative and some haven't
missed a beat.
(03:18):
But everybody seems to befreaked out right now and
concerned for their futures.
So let's everybody stop, take adeep breath and bring the blood
pressure back down a bit Now.
Take this opportunity to see ifwe can leverage this little
break in the action, takeadvantage of the slowdown and
actually set ourselves up forthe eventual comeback.
(03:39):
Yes, there are a few factors inplay here, compounding the issue
.
I believe everyone's burnedthrough all their post-COVID
work.
Industry stats show that therewere 9% fewer repairable claims,
it has been a mild winter herein most of the northern states,
insurance carriers are totalingvehicles at lower thresholds and
there's been an air of economicuncertainty, mostly due to
(04:01):
political chaos.
Even the large MSOs are feelingthe pinch with their reduced
workload as well.
So the big question is what dowe do when it slows down?
Well, that's a great question,one with many great answers, as
well as a few bad ones.
Before we get a beer bong tableon top of the frame rack or
(04:23):
start up that floor hockeyleague with your other local
repair shops, or just say I'mdone with this trade and turn
your building into a grow house,let's take a few minutes to
turn this negative into apositive and maybe just see how
we can best leverage ouravailable free time in this
cyclical slow period to setourselves up for the next wave
of three to four week backlogs.
(04:44):
Instead of bitching, whining andworrying, let's roll up our
sleeves and get to work on thesefour crucial areas for
improvement.
Number one fill the stalls backup.
Number two level up yourmarketing.
Number three shop improvements.
And number four training andeducation.
Number one fill the stalls backup.
The best way to get thingsrolling again in your empty
(05:07):
stalls is to fill them up withwork right?
Maybe not always the normalwork you've grown used to, but
some work will run cash flowthrough your shop better than no
work Agreed.
I don't want to make this soundlike it's simple, because it
isn't, but it's not impossibleeither.
It just takes a little hustleand a little creativity.
The great thing about having abody shop is there's many types
(05:28):
of work you can process that maynot exactly be traditional
collision, but can beaccomplished with the same
equipment, the same technicians,and it can be a great bridge to
get you through the lean timeswithout having to send your
techs home unnecessarily.
Here are a few accessibleresources that I've seen in my
career to gain some additionalwork some traditional, some
(05:48):
non-traditional.
That has been successful formany shops over the slow times
we all face.
Please take note here you mayneed to adjust your mindset a
bit or check your ego beforeapproaching some of these
non-traditional resources, butremember the goal keeping your
highly valuable techs workingand not sitting at home or,
worse yet, hunting for busiershops and keeping positive cash
(06:12):
flow moving through yourbusiness.
Those are your priorities Now.
First place to look for new workis your local municipalities,
the police and fire departments,the county and city work trucks
.
These vehicles all usually takea pretty good beating during
their work schedules and theyneed repairs consistently.
Most already have had othershops doing their work, but
(06:33):
maybe they're dissatisfied withcurrent results and will
appreciate a higher level ofservice.
Maybe it could just besomething simple like more
professional communications,responsiveness or local
reputation at your shop.
It's not always price.
How about the new car dealersin your network?
Some dealerships in your marketdo not have collision shops and
have to outsource that work tolocal body shops.
(06:55):
Check with those servicedirectors or managers.
They may already be usinganother shop.
But here's your chance to proveyour business can provide a
better experience for both thedealer and, most importantly,
their customers.
Start asking a few questions.
You might be surprised at whatyou find out.
If you're looking for acompetitive edge for your
business or a more effectivejumpstart to your personal
(07:17):
development, I'll make yourfirst step super simple.
It is a fact that an incrediblenumber of the most successful
business owners nearly half ofthe Fortune 500 companies
top-earning professionalathletes, entertainers and
industry leaders likeMicrosoft's Bill Gates, former
President Bill Clinton, oprahWinfrey, richard Branson,
amazon's Jeff Bezos andSalesforce's Mark Benioff, all
(07:40):
have one thing in common theyall have at least one coach and
some have several that they workwith on a consistent basis,
someone that helps guide, mentorand support them, challenge
them, help them set and achievegoals that move them forward and
then hold them accountable tofollow through driving personal
and professional growth.
Working with a coach has manysubstantial benefits.
(08:00):
Just for an example, 80% ofcoaching clients report improved
self-esteem or self-confidencethanks to coaching.
99% of individuals andcompanies that hire a coach
report being very satisfied and96% would do it again.
If, deep down, you know it'stime to make those improvements
in your business or yourpersonal life that you've kicked
down the road year after year.
(08:21):
If you're tired of knowingthere's a better version of you
waiting to shine but unsure ofhow to bring that version to
light.
If you're tired of wanting toenjoy a more successful business
but not sure how to start, andif you don't want to go another
12 months without better resultsbut you don't want to go it
alone, then take the first step.
It's super simple.
Sometimes talking to the rightperson can make all the
(08:42):
difference.
Go to wwwrixelovercom contactand I'll set you up with a free
consultation call with me to seeif one-on-one coaching is right
for you.
Fleet vehicles Now, most largecompanies have several vehicles
within their fleet.
You know, just take a drivethrough a couple industrial
subdivisions near your shop andyou'll see that Service
(09:10):
companies like the cable company, other utilities, plumbing,
electrical, hvac companies, lawnservices, pest control or any
other type of delivery-basedservice has multiple vehicles
that can need collision orpaintwork Insurance carrier
branch visits.
I know this sounds really oldschool, but it still can be a
fruitful venture if done right.
Plan a few visits to smallercarriers in your market that
don't have that 1-800 number.
(09:32):
Come prepared with some solid,positive data about your shop
that they would find attractive,like a one-sheet that includes
maybe all your OE certs, yourfive-star customer reviews, your
Google Ads stats, pics of yourupdated equipment, etc.
Forget the free box of donuts.
They don't care about that.
Bring a quality leave behindwith your company logo or name
(09:54):
on it.
Then there's community projectsThings like refurbishing local
city or park benches, maybe thelight posts, or how about the
parks and rec playgroundequipment.
There's plenty of opportunitiesthroughout the year.
Check with your local chamberof commerce for what may be
needed.
Then there's small batchpaintwork.
You know one of the greatthings about having a paint
(10:16):
booth it doesn't really carewhat you're painting cars,
trucks or widgets it providesthe exhausting and baking just
the same.
Now I've seen many non-vehicleitems being painted at various
shops when they're slow and someof these additions can be so
profitable that they can becontinued even when the
collision work picks back up.
Just got to get a littlecreative with your scheduling.
(10:37):
One shop I know was painting aspecial glass coating on top of
these big glass panels that wentinto high-rise buildings.
Now this work was so profitableit continued for years even
when the shop was busy.
I had another shop that wasdoing custom color changes on
home window frames, things likeentrance doors on high-end homes
, motorcycles, snowmobiles orboat parts for local dealers.
(11:00):
I even had a couple shops thatdid nothing but boat motor
propeller refinishing.
I look at it this way Almosteverything you can see has a
coating on it.
That means your opportunitiesare only as limited as your
vision and creativity.
Now the second key to what youshould be doing when you're slow
.
Number two level up yourmarketing.
Unfortunately, the majority ofcollision centers don't make
(11:23):
marketing a consistent practice.
Most tend to wait till businessdrops off before they even
consider spending anything inthe advertising or marketing
category.
But the most important andpositive impact of consistent
marketing was highlighted duringa recent 20-group meeting I
attended and surprise, surprisethose shops that kept their
(11:44):
collective foot on the pedalwhen it came to advertising and
promoting.
Their shops were significantlybusier than the rest.
Some still have maintained agood backlog of work to boot.
Now, just for reference, about10% of your gross sales should
be a healthy budget for youradvertising and marketing, but
I've seen many shops can getcreative with just about 5% of
(12:04):
that here are some areas forfocusing your efforts Google ads
.
These are not cheap, but the5-star reviews and having an
impressive number of reviews istruly the best measure of your
shop's reputation.
In today's world, having arating of four and a half or
better will put you in the toppages of search engines when
someone's looking for the bestor the top shops near them.
(12:25):
There's no better spend of yourmarketing budget than Google
ads, and it's best if you have aprofessional help you with this
process, as it is a littletricky.
Social media posts andengagement.
Having a great, easy to usewebsite and a healthy,
consistent social media presencein today's connected world is
essential for staying relevantwith your car crashing community
(12:48):
.
And, if you think about it,everybody these days goes right
to their phone anytime.
They need anything A service, ameal, large purchase or just
about anything that requiresspending money.
Most want a good recommendation, and they can get all that from
their mobile device 24-7.
Now if you don't show up whenthey search, it's game over for
you.
Right, and here's a pro tipYou're busy running your shop
(13:13):
and probably don't fullyunderstand how this whole social
media thing works, so outsourcethis task to Gen Zers or high
schoolers.
They tend to live right in thisstuff every day and they know
what gets eyes on a post right.
Then there's radio spots.
I know once again this maysound a little outdated as
Yellow Page ads, but it's not.
Many businesses thrive on theradio spots that play constantly
(13:37):
and consistently on FM stationsof the genre that resonates
with their core audience.
This type of media is not superexpensive, it's easy to update
and make changes to and it'sgreat for upcoming events or
announcements that can get totens of thousands of years on a
daily basis.
Then there's communityengagement.
So local community engagementis a fantastic way to not only
(14:01):
expand your potential customerbase but can also build a strong
bond to your business withinyour community.
Joining a chamber of commerce,attending some of their meetings
, providing an educational eventat your shop or offering
something like a free seatbeltcheck or a free child care seat
installation those type ofevents can build tremendous
(14:21):
trust within your market.
Sponsoring local athleticsteams is also a great way to get
your name out there in apositive light in a positive
light.
I've seen many shops for years,at the bare minimum, do this,
mostly because their kids playon the team or they find it's
one of the most affordable waysto promote their shop.
Joining a Rotary Club, knightsat Columbus or VFW post always
(14:43):
presents additionalopportunities to gain new
business.
And if you've never been partof a local B2B or a BNI group,
those are just local, connectedbusinesses within the community
that meet regularly and exchangeopportunities to work with each
other.
If you haven't joined one ofthose groups yet, what are you
waiting for?
I know several shop owners thatlove these groups.
(15:05):
Not only will you create a newincome stream for your shop, but
many have made greatconnections and lifelong
friendships from these groups.
Not to mention, it's good tohave a connection from your B&I
family when you need goods andservices that are outside of
your expertise.
Okay, that brings up the thirdarea of focus shop improvements.
Just being honest here, damnnear every shop I've ever been
(15:29):
in has had at least a few thingsthat could be implemented or
approved upon, whether it's aprocess flow, shop layout,
equipment related financialmetrics or something lacking in
the training side of thebusiness.
Today's ultra elite collisioncenter operates at a very high
level of efficiency andprofitability, but we're not all
(15:51):
there yet, right?
So there's always a need towork on the business and not in
the business.
Can we agree on that?
During our busy times, we usethe excuse of being too busy to
avoid or delay doing the thingsthat ultimately help our shops
run better.
So while we have a gap in theproduction, it's a great time to
knock a few of these things offour list.
(16:11):
As I mentioned earlier, thiscyclical business will get busy
again, so let's be ready for itwith a few needed improvements,
starting with SOPs, or StandardOperating Procedures.
They help build structure,consistency and accountability
into running a successfulcollision center.
So what are SOPs?
(16:31):
Well, they're prescribedwritten methods that are
routinely followed for specificoperations and situations.
They help to ensure consistencyin quality and work and are
essential as a list of necessarytasks and how to perform these
tasks for business success.
Slps are not something new.
They have been used in mostindustries for decades.
(16:52):
However, their application inthe collision repair business
has been relatively less common,but it is starting to gain
ground.
Here's a quick gut check to seeif SLPs are needed in your shop.
Does the way the customerservice reps answer the phone,
communicate with and onboardyour customers seem to be
inconsistent?
Is every one of your ROsprocessed the same throughout
(17:16):
metal, paint and final delivery?
Are your Google or CSI reviewssuffering due to delayed
deliveries, poor communicationsor inconsistent quality?
Well, if you've answered yes toany of those questions, then
you need SOPs.
If you don't have any writtenSOPs already, enlist your
vendors to help building them.
They aren't that difficult andthere's many pre-built templates
(17:40):
to customize available, andthey're excellent tools for both
new and existing employees touse.
And they're excellent tools forboth new and existing employees
to use.
And if you do already have SOPs, maybe it's time to review them
to see if they need updating.
How about the shop productionflow?
Shop floor plan or layout maynot be optimized for smooth
production flow.
Although reorganization of yourcomplete shop may not be
(18:02):
probable right now, there's manyminor tweaks and adjustments
that you can make while thestalls are not all full.
That'll help the flow when youdo get busy again.
Also, it's the perfect time to5S your shop.
Please consult with your paintsuppliers.
They're very familiar with thisprocess and can provide
training on how to accomplishthis improvement.
(18:23):
But, in a nutshell, 5s is just astructured program to clean,
organize, remove all unneededstuff or junk and install visual
clues to help ID where thingsshould go, when they're not
being used and then how tosustain this clean, organized
environment.
Listen for a hint on what thatlooks like.
Next time you visit a doctor'soffice or, more importantly,
(18:45):
when you visit an ER, notice howall the carts, the supplies,
the rooms, front desk areas,they're all set up visually,
they're organized, labeled.
You can quickly see exactlywhere everything is at.
Then you can dive into yourfinancials.
You know you can't monitor andmake improvements what you don't
measure right.
(19:06):
Getting your arms around thefinancials of your business can
seem impossible when you'reslammed.
Still not an excuse to ignoreit.
But to run a successful andprofitable business, it is
mandatory.
Use the available time toreview your KPIs.
Look at the last three monthsof your P&L to see where your
gross profit's been running.
What about your net income?
(19:26):
Are you in the 10% to 20% rangeor are you in the 0% to 5%
range?
If you don't know how to figurethat out or aren't using a P&L
statement just yet, there's noshame in that, but it would be
shameful not to explore how toget help with that.
There are plenty of resourcesthat can assist.
Find a good business coachcoach or attend some night
(19:52):
classes, or just hire someonethat you can trust.
That knows the collision shopbookkeeping.
Lastly, training and education.
What can I say?
I always hear shop owners,managers and techs put off any
type of training or educationalopportunities because they're
simply just too busy.
They can't afford to miss a dayjust for some stupid class.
Sound familiar?
Now is the absolute best time tocatch up on training or
(20:13):
attending educational seminars,webinars, whether in-house or
off-site.
This really doesn't need anyexplaining.
We all know the value of beingup-to-date on training and there
are multiple resources for this.
Here's just a couple ofexamples Paint company trainings
or offerings.
You know CSR or front officeestimating, blueprinting,
(20:34):
production or throughput,painter certs or research.
There's plenty available.
Just talk to your paint companyon what you need.
I-car or ASC modules there isalways more trainings needed
yearly OEM certification I wouldhighly recommend gaining as
many of these as possible andthen use them in your marketing
(20:55):
efforts.
And then industry trainingprovided by organizations like
Mike Anderson's Collision Adviceor Dave Lure's Elite Body Shop
Solutions or Kristen Felder'sCollision Hub and several others
out there.
And then, lastly, equipmentmanufacture classes.
Catch up on the latest indifferent welding operations,
digital measuring, plasticwelding and bumper repairs and
(21:17):
many other things.
So there you have it Four keyareas to spend your slowdown
time in.
Number one filling the stallsback up.
Number two leveling up yourmarketing.
Number three shop improvements.
And number four training andeducation.
Now, there's no reason to justsit and play solitaire on your
computer waiting for the nextassignment to hit your email or
(21:40):
walking customer to ask for anestimate.
No need for a floor hockeyleague although that would make
some really great YouTube videos, I'm sure and absolutely no
need to start that grow houseyour buddies are trying to talk
you into.
There's many ways to utilizeyour slow time to work on your
business and put yourself in aposition to capitalize on the
next wave of crazy busy that'seventually going to hit your
(22:01):
door.
Well, that's all I had for youtoday.
Thanks again for tuning in.
I really appreciate yoursupport and I hope you have a
great week.
I can always be reached atwwwrickselovercom, where you can
find all my social media linkspodcast episodes, blog posts and
much more.
Bye.
Well, guess what?
Our cyclical business slowed upagain, right, but this time
it's a major talking point atindustry get-togethers and in
the shops themselves.
Some are alternating tech dayson or off, or closing a little
earlier, some are getting alittle bit more creative and
some haven't missed a beat, buteverybody seems to be freaked
out right now and concerned fortheir futures.
(00:21):
So let's everybody stop, take adeep breath and bring the blood
pressure back down a bit Now.
Take this opportunity to see ifwe can leverage this little
break in the action, takeadvantage of the slowdown and
actually set ourselves up forthe eventual comeback.
Speaker 2 (00:43):
Welcome to the MindWrench podcast with your
host, rick Sellover, where minoradjustments produce major
improvements in mindset,personal growth and success.
This is the place to be everyMonday, where we make small
improvements and take positiveactions in our business and
personal lives that will make amajor impact in our success,
(01:03):
next-level growth and quality oflife.
Speaker 1 (01:12):
Hey, what's up everybody.
Welcome to the MindWrenchPodcast.
I'm your host, Rick Silover.
Thanks so much for stopping in.
If you're a returning listenerand haven't done so already,
please take a minute and clickthe follow or subscribe button
and then rate and review theshow.
When you rate and review theshow, the algorithms for Apple,
Spotify, Google Podcasts,iHeartRadio, Amazon Music and
(01:32):
all the other platforms will seethat it's valuable and show it
to more people that have neverseen it before, and hopefully it
can help them too.
I would really, really reallyappreciate your help, sharing
this word with your friends andfamily as well, and if you're a
brand new listener, welcome.
I hope you find something ofvalue here that helps you in
your personal or professionallife as well.
Please make sure to click thesubscribe or follow button so
(01:54):
you never miss another episode.
This week we're going to talkabout what do we do when our
workflow finally slows down.
Our collision industry businessmay be very unique in many ways
, but like most servicebusinesses, it's very cyclical
in nature.
We used to be able toanticipate our workload by the
seasons, right, you know slow inthe fall when school starts and
(02:16):
have a nice blast of work whendeer hits here in the top half
of the US We'd be busy in thewintertime, except for the
holidays, then a little sporadicin the spring and much slower
when the summer finally settlesin.
Anyone that's been operating acollision center for at least 10
years or so knows this and hassurvived the ups and downs, the
rollercoaster ride of crazy busyto hope to god.
(02:38):
Something shows up here becausewe got nothing scheduled for
next week, right?
Well, all that went right outthe window during COVID.
We went quickly from nobody onthe roads during the lockdowns
and shops dead across the boardto busier than ever, growing
backlogs measuring in months,not weeks, and we've stayed
right there up until about thefall of 2024.
(02:58):
Well, guess what?
Our cyclical business slowed upagain, right, but this time
it's a major talking point atindustry get-togethers and in
the shops themselves.
Some are alternating tech dayson or off or closing a little
earlier.
Some are getting a little bitmore creative and some haven't
missed a beat.
(03:18):
But everybody seems to befreaked out right now and
concerned for their futures.
So let's everybody stop, take adeep breath and bring the blood
pressure back down a bit Now.
Take this opportunity to see ifwe can leverage this little
break in the action, takeadvantage of the slowdown and
actually set ourselves up forthe eventual comeback.
(03:39):
Yes, there are a few factors inplay here, compounding the issue
.
I believe everyone's burnedthrough all their post-COVID
work.
Industry stats show that therewere 9% fewer repairable claims,
it has been a mild winter herein most of the northern states,
insurance carriers are totalingvehicles at lower thresholds and
there's been an air of economicuncertainty, mostly due to
(04:01):
political chaos.
Even the large MSOs are feelingthe pinch with their reduced
workload as well.
So the big question is what dowe do when it slows down?
Well, that's a great question,one with many great answers, as
well as a few bad ones.
Before we get a beer bong tableon top of the frame rack or
(04:23):
start up that floor hockeyleague with your other local
repair shops, or just say I'mdone with this trade and turn
your building into a grow house,let's take a few minutes to
turn this negative into apositive and maybe just see how
we can best leverage ouravailable free time in this
cyclical slow period to setourselves up for the next wave
of three to four week backlogs.
(04:44):
Instead of bitching, whining andworrying, let's roll up our
sleeves and get to work on thesefour crucial areas for
improvement.
Number one fill the stalls backup.
Number two level up yourmarketing.
Number three shop improvements.
And number four training andeducation.
Number one fill the stalls backup.
The best way to get thingsrolling again in your empty
(05:07):
stalls is to fill them up withwork right?
Maybe not always the normalwork you've grown used to, but
some work will run cash flowthrough your shop better than no
work Agreed.
I don't want to make this soundlike it's simple, because it
isn't, but it's not impossibleeither.
It just takes a little hustleand a little creativity.
The great thing about having abody shop is there's many types
(05:28):
of work you can process that maynot exactly be traditional
collision, but can beaccomplished with the same
equipment, the same technicians,and it can be a great bridge to
get you through the lean timeswithout having to send your
techs home unnecessarily.
Here are a few accessibleresources that I've seen in my
career to gain some additionalwork some traditional, some
(05:48):
non-traditional.
That has been successful formany shops over the slow times
we all face.
Please take note here you mayneed to adjust your mindset a
bit or check your ego beforeapproaching some of these
non-traditional resources, butremember the goal keeping your
highly valuable techs workingand not sitting at home or,
worse yet, hunting for busiershops and keeping positive cash
(06:12):
flow moving through yourbusiness.
Those are your priorities Now.
First place to look for new workis your local municipalities,
the police and fire departments,the county and city work trucks
.
These vehicles all usually takea pretty good beating during
their work schedules and theyneed repairs consistently.
Most already have had othershops doing their work, but
(06:33):
maybe they're dissatisfied withcurrent results and will
appreciate a higher level ofservice.
Maybe it could just besomething simple like more
professional communications,responsiveness or local
reputation at your shop.
It's not always price.
How about the new car dealersin your network?
Some dealerships in your marketdo not have collision shops and
have to outsource that work tolocal body shops.
(06:55):
Check with those servicedirectors or managers.
They may already be usinganother shop.
But here's your chance to proveyour business can provide a
better experience for both thedealer and, most importantly,
their customers.
Start asking a few questions.
You might be surprised at whatyou find out.
If you're looking for acompetitive edge for your
business or a more effectivejumpstart to your personal
(07:17):
development, I'll make yourfirst step super simple.
It is a fact that an incrediblenumber of the most successful
business owners nearly half ofthe Fortune 500 companies
top-earning professionalathletes, entertainers and
industry leaders likeMicrosoft's Bill Gates, former
President Bill Clinton, oprahWinfrey, richard Branson,
amazon's Jeff Bezos andSalesforce's Mark Benioff, all
(07:40):
have one thing in common theyall have at least one coach and
some have several that they workwith on a consistent basis,
someone that helps guide, mentorand support them, challenge
them, help them set and achievegoals that move them forward and
then hold them accountable tofollow through driving personal
and professional growth.
Working with a coach has manysubstantial benefits.
(08:00):
Just for an example, 80% ofcoaching clients report improved
self-esteem or self-confidencethanks to coaching.
99% of individuals andcompanies that hire a coach
report being very satisfied and96% would do it again.
If, deep down, you know it'stime to make those improvements
in your business or yourpersonal life that you've kicked
down the road year after year.
(08:21):
If you're tired of knowingthere's a better version of you
waiting to shine but unsure ofhow to bring that version to
light.
If you're tired of wanting toenjoy a more successful business
but not sure how to start, andif you don't want to go another
12 months without better resultsbut you don't want to go it
alone, then take the first step.
It's super simple.
Sometimes talking to the rightperson can make all the
(08:42):
difference.
Go to wwwrixelovercom contactand I'll set you up with a free
consultation call with me to seeif one-on-one coaching is right
for you.
Fleet vehicles Now, most largecompanies have several vehicles
within their fleet.
You know, just take a drivethrough a couple industrial
subdivisions near your shop andyou'll see that Service
(09:10):
companies like the cable company, other utilities, plumbing,
electrical, hvac companies, lawnservices, pest control or any
other type of delivery-basedservice has multiple vehicles
that can need collision orpaintwork Insurance carrier
branch visits.
I know this sounds really oldschool, but it still can be a
fruitful venture if done right.
Plan a few visits to smallercarriers in your market that
don't have that 1-800 number.
(09:32):
Come prepared with some solid,positive data about your shop
that they would find attractive,like a one-sheet that includes
maybe all your OE certs, yourfive-star customer reviews, your
Google Ads stats, pics of yourupdated equipment, etc.
Forget the free box of donuts.
They don't care about that.
Bring a quality leave behindwith your company logo or name
(09:54):
on it.
Then there's community projectsThings like refurbishing local
city or park benches, maybe thelight posts, or how about the
parks and rec playgroundequipment.
There's plenty of opportunitiesthroughout the year.
Check with your local chamberof commerce for what may be
needed.
Then there's small batchpaintwork.
You know one of the greatthings about having a paint
(10:16):
booth it doesn't really carewhat you're painting cars,
trucks or widgets it providesthe exhausting and baking just
the same.
Now I've seen many non-vehicleitems being painted at various
shops when they're slow and someof these additions can be so
profitable that they can becontinued even when the
collision work picks back up.
Just got to get a littlecreative with your scheduling.
(10:37):
One shop I know was painting aspecial glass coating on top of
these big glass panels that wentinto high-rise buildings.
Now this work was so profitableit continued for years even
when the shop was busy.
I had another shop that wasdoing custom color changes on
home window frames, things likeentrance doors on high-end homes
, motorcycles, snowmobiles orboat parts for local dealers.
(11:00):
I even had a couple shops thatdid nothing but boat motor
propeller refinishing.
I look at it this way Almosteverything you can see has a
coating on it.
That means your opportunitiesare only as limited as your
vision and creativity.
Now the second key to what youshould be doing when you're slow
.
Number two level up yourmarketing.
Unfortunately, the majority ofcollision centers don't make
(11:23):
marketing a consistent practice.
Most tend to wait till businessdrops off before they even
consider spending anything inthe advertising or marketing
category.
But the most important andpositive impact of consistent
marketing was highlighted duringa recent 20-group meeting I
attended and surprise, surprisethose shops that kept their
(11:44):
collective foot on the pedalwhen it came to advertising and
promoting.
Their shops were significantlybusier than the rest.
Some still have maintained agood backlog of work to boot.
Now, just for reference, about10% of your gross sales should
be a healthy budget for youradvertising and marketing, but
I've seen many shops can getcreative with just about 5% of
(12:04):
that here are some areas forfocusing your efforts Google ads
.
These are not cheap, but the5-star reviews and having an
impressive number of reviews istruly the best measure of your
shop's reputation.
In today's world, having arating of four and a half or
better will put you in the toppages of search engines when
someone's looking for the bestor the top shops near them.
(12:25):
There's no better spend of yourmarketing budget than Google
ads, and it's best if you have aprofessional help you with this
process, as it is a littletricky.
Social media posts andengagement.
Having a great, easy to usewebsite and a healthy,
consistent social media presencein today's connected world is
essential for staying relevantwith your car crashing community
(12:48):
.
And, if you think about it,everybody these days goes right
to their phone anytime.
They need anything A service, ameal, large purchase or just
about anything that requiresspending money.
Most want a good recommendation, and they can get all that from
their mobile device 24-7.
Now if you don't show up whenthey search, it's game over for
you.
Right, and here's a pro tipYou're busy running your shop
(13:13):
and probably don't fullyunderstand how this whole social
media thing works, so outsourcethis task to Gen Zers or high
schoolers.
They tend to live right in thisstuff every day and they know
what gets eyes on a post right.
Then there's radio spots.
I know once again this maysound a little outdated as
Yellow Page ads, but it's not.
Many businesses thrive on theradio spots that play constantly
(13:37):
and consistently on FM stationsof the genre that resonates
with their core audience.
This type of media is not superexpensive, it's easy to update
and make changes to and it'sgreat for upcoming events or
announcements that can get totens of thousands of years on a
daily basis.
Then there's communityengagement.
So local community engagementis a fantastic way to not only
(14:01):
expand your potential customerbase but can also build a strong
bond to your business withinyour community.
Joining a chamber of commerce,attending some of their meetings
, providing an educational eventat your shop or offering
something like a free seatbeltcheck or a free child care seat
installation those type ofevents can build tremendous
(14:21):
trust within your market.
Sponsoring local athleticsteams is also a great way to get
your name out there in apositive light in a positive
light.
I've seen many shops for years,at the bare minimum, do this,
mostly because their kids playon the team or they find it's
one of the most affordable waysto promote their shop.
Joining a Rotary Club, knightsat Columbus or VFW post always
(14:43):
presents additionalopportunities to gain new
business.
And if you've never been partof a local B2B or a BNI group,
those are just local, connectedbusinesses within the community
that meet regularly and exchangeopportunities to work with each
other.
If you haven't joined one ofthose groups yet, what are you
waiting for?
I know several shop owners thatlove these groups.
(15:05):
Not only will you create a newincome stream for your shop, but
many have made greatconnections and lifelong
friendships from these groups.
Not to mention, it's good tohave a connection from your B&I
family when you need goods andservices that are outside of
your expertise.
Okay, that brings up the thirdarea of focus shop improvements.
Just being honest here, damnnear every shop I've ever been
(15:29):
in has had at least a few thingsthat could be implemented or
approved upon, whether it's aprocess flow, shop layout,
equipment related financialmetrics or something lacking in
the training side of thebusiness.
Today's ultra elite collisioncenter operates at a very high
level of efficiency andprofitability, but we're not all
(15:51):
there yet, right?
So there's always a need towork on the business and not in
the business.
Can we agree on that?
During our busy times, we usethe excuse of being too busy to
avoid or delay doing the thingsthat ultimately help our shops
run better.
So while we have a gap in theproduction, it's a great time to
knock a few of these things offour list.
(16:11):
As I mentioned earlier, thiscyclical business will get busy
again, so let's be ready for itwith a few needed improvements,
starting with SOPs, or StandardOperating Procedures.
They help build structure,consistency and accountability
into running a successfulcollision center.
So what are SOPs?
(16:31):
Well, they're prescribedwritten methods that are
routinely followed for specificoperations and situations.
They help to ensure consistencyin quality and work and are
essential as a list of necessarytasks and how to perform these
tasks for business success.
Slps are not something new.
They have been used in mostindustries for decades.
(16:52):
However, their application inthe collision repair business
has been relatively less common,but it is starting to gain
ground.
Here's a quick gut check to seeif SLPs are needed in your shop.
Does the way the customerservice reps answer the phone,
communicate with and onboardyour customers seem to be
inconsistent?
Is every one of your ROsprocessed the same throughout
(17:16):
metal, paint and final delivery?
Are your Google or CSI reviewssuffering due to delayed
deliveries, poor communicationsor inconsistent quality?
Well, if you've answered yes toany of those questions, then
you need SOPs.
If you don't have any writtenSOPs already, enlist your
vendors to help building them.
They aren't that difficult andthere's many pre-built templates
(17:40):
to customize available, andthey're excellent tools for both
new and existing employees touse.
And they're excellent tools forboth new and existing employees
to use.
And if you do already have SOPs, maybe it's time to review them
to see if they need updating.
How about the shop productionflow?
Shop floor plan or layout maynot be optimized for smooth
production flow.
Although reorganization of yourcomplete shop may not be
(18:02):
probable right now, there's manyminor tweaks and adjustments
that you can make while thestalls are not all full.
That'll help the flow when youdo get busy again.
Also, it's the perfect time to5S your shop.
Please consult with your paintsuppliers.
They're very familiar with thisprocess and can provide
training on how to accomplishthis improvement.
(18:23):
But, in a nutshell, 5s is just astructured program to clean,
organize, remove all unneededstuff or junk and install visual
clues to help ID where thingsshould go, when they're not
being used and then how tosustain this clean, organized
environment.
Listen for a hint on what thatlooks like.
Next time you visit a doctor'soffice or, more importantly,
(18:45):
when you visit an ER, notice howall the carts, the supplies,
the rooms, front desk areas,they're all set up visually,
they're organized, labeled.
You can quickly see exactlywhere everything is at.
Then you can dive into yourfinancials.
You know you can't monitor andmake improvements what you don't
measure right.
(19:06):
Getting your arms around thefinancials of your business can
seem impossible when you'reslammed.
Still not an excuse to ignoreit.
But to run a successful andprofitable business, it is
mandatory.
Use the available time toreview your KPIs.
Look at the last three monthsof your P&L to see where your
gross profit's been running.
What about your net income?
(19:26):
Are you in the 10% to 20% rangeor are you in the 0% to 5%
range?
If you don't know how to figurethat out or aren't using a P&L
statement just yet, there's noshame in that, but it would be
shameful not to explore how toget help with that.
There are plenty of resourcesthat can assist.
Find a good business coachcoach or attend some night
(19:52):
classes, or just hire someonethat you can trust.
That knows the collision shopbookkeeping.
Lastly, training and education.
What can I say?
I always hear shop owners,managers and techs put off any
type of training or educationalopportunities because they're
simply just too busy.
They can't afford to miss a dayjust for some stupid class.
Sound familiar?
Now is the absolute best time tocatch up on training or
(20:13):
attending educational seminars,webinars, whether in-house or
off-site.
This really doesn't need anyexplaining.
We all know the value of beingup-to-date on training and there
are multiple resources for this.
Here's just a couple ofexamples Paint company trainings
or offerings.
You know CSR or front officeestimating, blueprinting,
(20:34):
production or throughput,painter certs or research.
There's plenty available.
Just talk to your paint companyon what you need.
I-car or ASC modules there isalways more trainings needed
yearly OEM certification I wouldhighly recommend gaining as
many of these as possible andthen use them in your marketing
(20:55):
efforts.
And then industry trainingprovided by organizations like
Mike Anderson's Collision Adviceor Dave Lure's Elite Body Shop
Solutions or Kristen Felder'sCollision Hub and several others
out there.
And then, lastly, equipmentmanufacture classes.
Catch up on the latest indifferent welding operations,
digital measuring, plasticwelding and bumper repairs and
(21:17):
many other things.
So there you have it Four keyareas to spend your slowdown
time in.
Number one filling the stallsback up.
Number two leveling up yourmarketing.
Number three shop improvements.
And number four training andeducation.
Now, there's no reason to justsit and play solitaire on your
computer waiting for the nextassignment to hit your email or
(21:40):
walking customer to ask for anestimate.
No need for a floor hockeyleague although that would make
some really great YouTube videos, I'm sure and absolutely no
need to start that grow houseyour buddies are trying to talk
you into.
There's many ways to utilizeyour slow time to work on your
business and put yourself in aposition to capitalize on the
next wave of crazy busy that'seventually going to hit your
(22:01):
door.
Well, that's all I had for youtoday.
Thanks again for tuning in.
I really appreciate yoursupport and I hope you have a
great week.
I can always be reached atwwwrickselovercom, where you can
find all my social media linkspodcast episodes, blog posts and
much more.
Bye.
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