Auto Body Repair / Collision Shop 5 ways to increase your profits

Let’s face, your profit margins are consciously being squeezed. The way to combat this issue is to evolve into new products and services that are right at reach. Your collision shop is just another retail outlet; your business has much more potential than just changing a fender. The time to be nimble and creative is here. As with any retail center, the hardest part is getting the customer in the door. Once they have agreed for you to repair their vehicle, it is time to up sell them on numerous other products and services that they might desire. I have listed five ways to build your profit in this sagging economy.

• Rentals: Do you offer any rental service? Do you have a free loner vehicle? A free loner does not make you money, it might add as a customer value item, needed to get the job, but in reality that is not necessarily your business. Well, let’s make it your business; maybe have a few vehicles that you offer for $30/day. Maybe waive that fee to loyal customers. Many insurance polices have rental coverage, maybe it is time to get a piece of that pie. Or better yet, do not have any rentals, contact all your local rental agencies and create an affiliate program with them. See who will give you the best rates for your customers and what referral they will pay. I would set it up so the rental agency can pick up your customer right at your shop, this could create better customer service, alleviate you owning and renting vehicles, and make a few dollars.

• Value added products & services: This is where you need to think outside of the box. What kind of products can I sell this customer in need? 3M just came out with a great headlamp restoration system. You can polish the old composite headlamps to look like new, I am sure you could sell this to anyone with those fogged over yellow lamps. Seems like this could be somewhat of an easy sale. What about a vehicle polish, “exterior detail”? Here is an example; Hi Mr. customer, I notice that your vehicle’s finish is looking a little dull, for $79.99 we can polish your vehicle back as close as possible to the factory finish.

• Detail: Offer a $99.99 interior detail. Again, if it is viable and you have the space, do it in house. If it is not something you are interested in doing, start an affiliate program with a local detail company. I would contact all in the area and work something out. Have the detail company pick customer vehicle up and drop off. This way, you can collect the money from the customer at your detail rate, and pay the detail shop the rates you have worked out. I know this would be a good market, most people getting auto body repair work want they auto back in clean and as new condition as possible.

• Suppliers: Wither it is a parts supplier or materials supplier, you need to squeeze their profit margin as well. I would contact all my suppliers on a quarterly basis and see if they can give you a deal. I am not suggesting dropping old ones and adding new, but just see what they can do. It never hurts to ask. Competition in these markets are fierce, let those forces work for you. You are the customer in this situation. Keystone is a leader in remanufactured wheels and bumpers, but there are numerous others that compete against them, just see what the comparison is. The same goes for OEM parts suppliers, they are very cut throat. Just like it is challenging to get a customer in the shop, it is as challenging for a vender to get and retain you as a customer.

• Insurance Company Relations: Build your relationship with the insurance companies and appraisers. Wither you like it or not, insurance companies are your largest clientele. I am not suggesting any sort of “DRP” direct repair programs. I actually am a huge advocate against this sort of monopolistic rule. It is troublesome that the government allows this; these programs should be banned ASAP. Anyhow, I would work with the carriers and let them know we all have to make a living, if your walk in hourly rate is x dollars, that is what it is.

I hope that if anything, this article gets you to ponder all the revenue possibilities at hand. You own and operate a large retail center; with a little forward think you should be able to realize all the profit potential at hand. Once the customer is in your store, start selling them on all the other great products and services you offer. Affiliate programs I personally think work the best. Good luck. Please join our Auto Body Repair Industry talk at www.CrashChat.com

State Collision Association Directory

State Associations

Alabama

Alabama Collision Repairer Association
Phone: (334) 262-4656

IRBA Alabama
Phone: (336) 210-1947

Arizona

ASA Arizona
Phone: (800) 576-2963
www.asaaz.org

Arizona Collision Craftsmen’s Association
Phone: (480) 893-1222 ext. 20
www.az-cca.com

Arkansas

Arkansas Collision Repair Association
Phone: (501) 968-4471

California

Automotive Service Councils of California ASC
Phone: (916) 924-9054
www.ascca.com

East Bay Autobody Association CAA
Phone: (916) 646-8111
www.calautobody.com

Collision Repair Association of California
Phone: (916) 837-2362
www.cra-ca.com

Colorado

ASA Colorado
Phone: (303) 202-5231
www.asacolorado.org

Colorado Collision Association
Phone: (303) 791-0975

Connecticut

Auto Body Association of Connecticut
Phone: (860) 848-0534
www.abaconn.com

D.C.

Washington Metropolitan Auto Body Association
Phone: (202) 363-1858
www.wmaba.com

Delaware

AASP Pennsylvania & Delaware
Phone: (717) 564-8400

Florida

ASA Florida
Phone (800) 434-8372
www.fataonline.org

Georgia

ASA Georgia
Phone: (706) 832-7242
www.asagashop.org

Georgia Auto Body Association
Phone: (912) 743-1594

CRSA Collision Industry Association
Phone (706) 722-7222
www.cciagasc.org

Georgia Collision Industry Association
Phone: (779) 641-1810
www.gcia.org

Hawaii

Automotive Body Painting Association of Hawaii
Phone: (808) 553-6750

Idaho

Idaho Automotive Craftsmen Association
Phone: (208) 362-6611

Illinois

AASPI Illinois
Phone; (217) 528-5230
www.aaspi.org

Indiana

Indiana Auto Body Association
Phone: (317) 290-0611 ext. 88

Iowa

Iowa Collision Repair Association
Phone: (319) 560-8820
www.iowacra.com

Kansas

ASA Missouri Kansas
Phone: (816) 781-5801
www.asamokan.org

Kentucky

Automotive Service Council ASC of Kentucky
Phone: (502) 857-4284
www.ascky.org

Louisiana

ASA Baton Rouge
Phone (800) 272-7467 ext. 213

ASA New Orleans
Phone (800) 272-7467 ext. 213

Louisiana Collision Association
Phone: (281) 292-9058

Maine

AASP Maine
Phone: (207) 773-8560

Massachusetts

AASP Massachusetts & Rhode Island
Phone: (978) 430-9214
www.aaspmari.org

Massachusetts Auto Body Association MABA
Phone: (800) 826-0593
www.massautobody.org

Central Mass Auto Rebuilders Association
Phone: (978) 562-5300

Michigan

ASA Michigan
Phone: (734) 354-9250
www.asamichigan.com

Minnesota

AASP Minnesota
Phone: (612) 623-1110
www.aaspmn.org

Mississippi

Mississippi Collision Repair Association
Phone: (601) 835-3377

Mississippi Auto Body Association
Phone: (601) 856-0700

Missouri

AASPI Missouri
Phone: (800) 288-3683
www.aasp-mo.org

ASA Missouri Kansas
Phone: (816) 781-5801
www.asamokan.org

SCRS Missouri Kansas
Phone: (816) 298-0146
www.scrsmokan.com

Missouri Collision Coalition
Phone: (816) 254-9900

Montana

Montana Collision Repair Specialists
Phone: (406) 652-1440

Nebraska

Nebraska Autobody Association
Phone: (402) 762-3362
www.nebraskaautobody.com

ASA Nebraska
Phone: (402) 434-6961

Nevada

Nevada Collision Industry Association NCIA
Phone: (702) 450-4822

New Hampshire

Automotive Collision Repair Services ACRS
Phone: (603) 886-1800
www.acrsnetwork.com

New Jersey

AASP NJ
Phone: (732) 269-9893
www.aaspnj.org

New York

AASP New York
Phone: (315) 455-1301

Autobody Craftsman Guild
Phone (718) 448-4075

New York Sate Automotive Collision Technicians Association NYSACTA
Phone: (631) 941-9647
www.liabra.com

Long Island Auto Body Repairmen’s Association LIABRA
Phone: (631) 941-9647
www.liabra.com

Westchester – Putman – Rockland Auto Body Association
Phone: (914) 835-5688

North Carolina

ASA North Carolina
Phone: (919) 846-8799
www.asanc.org

Independent Garage Owners of North Carolina Inc. IGONC
Phone; (800) 243-1560
www.igonc.com

North Dakota

North Dakota Auto Body Association
Phone: (701) 475-2830
www.ndautobody.org

Ohio

ASA Ohio
Phone: (800) 441-6518
www.asaohio.org

ASA Greater Cleveland
Phone: (440) 449-3334

Ohio Body Shop Owners Association
Phone: (614) 589-OBOA
www.oba.net

Oklahoma

Fellowship of Concerned Repairers of Oklahoma
Phone: (405) 751-1337

Oregon

IABA Oregon
Phone; (336) 210-1947

Northwest Automotive Trades Association
Phone: (503) 253-9898
www.aboutnata.org

Oregon Auto Body Craftsman Association
Phone: (503) 252-4201

Oregon Collision Repair Specialists OCRS
Phone: (503) 250-1134

Pennsylvania

AASP Pennsylvania
Phone: (717) 564-8400
www.aasp-pa.org

Pennsylvania Collision Trade Guild PCTG
Phone: (215) 342-1818
www.pctg.org

Rhode Island

ASA Rhode Island
Phone: (401) 942-5107

AASP Massachusetts – Rhode Island
Phone: (978) 430-9214
www.aaspmari.org

Auto Body Association of Rhode Island
Phone: (401) 467-7575
www.abari.net

South Carolina

ASA South Carolina
Phone (803) 736-1489
www.asasc.org

IABA South Carolina
Phone: (336) 210-1947

South Dakota

ASA South Dakota
Phone; (800) 272-7467 ext. 213

South Dakota Auto Body Association
Phone (605) 692-4024

Tennessee

IABA Tennessee
Phone: (336) 210-1947

Tennessee Collision Repairers Association
Phone; (731) 668-9263

Texas

ASE Texas
Phone: (830) 896-6842
www.asatx.org

IABA Texas
Phone: (336) 210-1947

Utah

Auto Body Owners of Utah
Phone: (801) 566-1215

Vermont

Vermont Auto Body Association
Phone: (802) 775-3777
www.vaba.org

Virginia

IABA Virginia
Phone: (336) 210-1947

VABA Virginia Auto Body Association
Phone: (804) 779-0611

Washington

Autobody Craftsman Association
Phone: (206) 575-8893
www.acanw.com

ASA Washington
Phone: (253) 473-6970
www.asawa.com

West Virginia

West Virginia Auto Body Repair Association
Phone: (304) 599-9545

Wisconsin

Wisconsin Auto Collision Technician Association
Phone; (800) 366-9472
www.wactal.com

National Collision Association Directory

National Collision Associations




Networking and discussion for the auto body repair industry. Body shops, technicians, appraisers, estimators, adjusters, and anyone involved in the industry is welcome.


Alliance of Automotive Service Providers (AASP)
Phone: (651) 265-7853
www.autoserviceproviders.com


Automotive Service Association (ASA)
Phone: (800) 272-7467
www.asashop.org


Coalition for Collision Repair Excellence (CCRE)
Phone: (877) 770-7743
www.theccre.com


Collision Industry Relief
Phone: (888) 667-7743
www.collisionindustryrelief.com


Independent Auto Body Association (IABA)
Phone: (336) 210-1947
www.autobodyassn.com


National Association of PDR Technicians (NAPDRT)
www.napdrt.org


National Auto Body Council (NABC)
Phone: (888) 667-0433
www.autobodycouncil.org


National Collision Industry Alliance (NCIA)
Phone: (402) 762-5510
www.nationalcia.com


NASFT Collision Repair Committee
Phone: (703) 669-6600
www.nastf.orh


Society of Collision Repair Committee
Phone: (877) 841-0660
www.scrs.com


U.S. Alliance of Collision Professionals
www.usacp.org

Auto body repair business marketing for less than $100 a year.

There are ups and downs in any sort of business, follow these five marketing strategies to keep a steady flow of business. I have been in the auto body repair business for over 16 years, and have done countless studies on the marketing of this type of business. I have formulated five steps plan that costs less than $100 a year to run.

• Step one, build a website. Have a functioning website. I hope that a majority of shop owners have completed this step years ago. But if not, do not worry, technology costs have dropped. You can use a simple premade template site, add photos, contact information, and have it up and running in less than a few hours. You can buy a domain (example.com) from numerous providers. I would recommend GoDaddy.com; they offer great customer service and numerous website templates. You can buy a domain for as little as $7.00. Please, refrain from any domain not a dot com; avoid .net, .us, etc. These tried hard to work, but dot com is the easiest and most recognized. You can host a simple site for as little as $4.00 a month. Studies show that consumers are not using the phone book anymore that is history. People go onto the internet and type in a search engine what they are looking for. An example is as follows, I need some auto body repair work done, I am new to this area, go to www.google.com and type “auto body repair”; it would pop up numerous ads in the surrounding area. If your ad is not there, you are not going to get that call. So step one, get a good looking website.

• Step two, list with major search engines. Now that you have your auto body repair site up and running, list it with some major search engines. This is free, takes less than a minute, and will get you great results. I would list with Google, Yahoo, MSN; these are probably all you need. Just type in the search box, list url on Google, Yahoo, and MSN. That should bring up the submission pages. Submit your site and wait. It can take up to three months for your site to be indexed. No need to be disappointed, it all takes time.

• Step three, list with directories or classifieds. Every heard of www.CraigsList.com ? This is one of the highest traffic sites on the internet. Will work wonders for your shop, and is free. Takes less than three minutes to post an add. You obviously would post your shop information under, services – automotive. Cragislist is meant for local areas, so best to only list in your areas, if you attempt to list all over the country, your account will be deleted. Another great local site is www.LaborTrader.com This site has numerous areas for your listings, listings are by county. You could list all of your services, auto glass, body repair, towing, mechanical, etc. Labortrader.com also has a great contract system, you are able to get all your work in writing, and a rating system, LaborTrader.com also is completely free. Make sure when you list on these sites to also list your website, it will be linked to your listing page. This will direct interested customers to your site if they desire more information.

• Step four, get connected via message boards. There are message boards and forums for pretty much every industry. CrashChat, www.CrashChat.com was just started and is strictly for the networking and discussion of the auto body repair industry. Get talking and connect with others in the auto body repair field. Keep in mind; we are all in this together. Let’s help each other out. Spread our knowledge. There will also be a directory soon, to where you will be able to list your body shop, towing facility, etc. When using forums and message boards, make sure to list your website address. Let your address get spread around, get people interested.

• Step five, start an email campaign. This is not nearly as hard as it sounds. What you need to do is start collecting customer’s emails. If the customer or user gives you permission, that is called “opt in” and you will be able to send them information pertaining to your business. You could collect emails from customers visiting your shop, or put a sign up list on your website. Again, as long as the email addresses you are sending information to are “opt in” this is not considered spam, and you have a great marketing tool. I would not bombard customers with random information, but send them a monthly email with all your specials, changes, updates, etc. A great email marketing campaign is offered through GoDaddy. Again, Godaddy is easy to use and there customer service is stellar.

Please follow these five steps, see if it can help your auto body repair business advertising campaign. Consistent marketing is needed to stay afloat in any business. Rome was not built in one day, give a try and do not give up. Please also share your stories and anything to do with the auto body repair industry at www.CrashChat.com