Panel and Paint
The crowd of noisy protesters let out a loud cheer as the hooded leader of their group threw the pink porcelain pig high into the air. It rocketed through the board room window with a loud crash and shattered on the beautifully finished and very expensive American walnut boardroom table. Its contents of 10 cent pieces exploded across every surface of the room – including the hastily assembled members of the Board.
The Chairman, a huge bull of a man, was instantly livid with rage. He roared at the hapless CEO. “You assured us your plan would make us the most powerful insurance company in the land. Ruth, your PHD in physiology and your MBA amount to nothing, dammit, the media has even called us the Ruthless Insurance company!
“We, the Board, have agreed the damage you have done to our brand is enormous and your latest efforts have been a total PR disaster. Ruth, you’re fired. Take the $2,000,000 severance package and leave immediately. Security will see you out of the building.”
The Board turned their attention to the neatly folded page among the mess of pink porcelain, glass shards and 10 cent pieces scattered across the table. The message delivered by the protestors was picked up by the Chief Financial Officer. He had to speak loudly to be heard above the now very obvious noise from the crowd outside. “These coins represent the pathetically thin margins you expect the collision repair industry to operate on. The flying pig they were delivered in represents the promises you made; and its shattering represents the damage to our livelihoods.
“We hereby give notice that we are taking every available legitimate action to cause the same degree of damage to yours.”
Yes, the above is a work of fiction. Or is it a chilling forecast of what may happen in the future? In previous articles I mentioned the need for professionalism and discovering the most efficient ways to operate. This included an examination of the niche you operate in, potential for diversification, the training of staff, and having the right equipment to carry out the job.
Some of the feedback received on recent articles was surprising in that several workshops have actually decided not to submit applications to join insurance company repair networks, or had started the process only to withdraw when they discovered the obligations they were signing up to were either too imposing or completely impractical for their style of operation. In short, there is a growing number of panel shops that have decided their futures are going to be reliant on their independence.
The future will be either exciting or daunting depending on the plans you develop, and just how well you have performed in the past. If you are guilty of shoddy workmanship and have a poor reputation then its time to wave the white flag and find something you actually care about. If failure isn't an option, then it's time to recognise it's you that owns the customer, because you are the go-to guy they trust to do it right the first time, and your word is your bond of satisfaction.
So, lets talk about the future. Last month I wrote about my experience when I called the Insurance Ombudsman and a couple of Insurance companies to confirm I could take my car to any panel shop to be repaired. I identified that online marketing is low cost and taking an approach similar to the Mad Butcher or Michael Hill Jeweller, with your own personal guarantee of quality workmanship was something you might like to consider.
How do I know this approach of being the go-to guy will work? I am a very busy go-to guy and yet I have my own go-to guy to tow in my car if it breaks down or gets crashed; he can repair panel or mechanical damage and even replace tyres, do a service and a WOF inspection, or replace the windscreen. While any of this is going on I have his loan car, and when I get the bill it is always reasonable. So how can an Insurance company possibly compete with this level of no-hassle personal service? The short answer is it can't - and even us go-to guys have go-to guys!
I have heard it said that “Advertising is a tax on a poorly run business.” My go-to guy has a well deserved reputation and I know when I recommend him to friends and associates they are going to have the same great experience I enjoy. This kind of word-of-mouth promotion is more effective than any kind of advertising, but this said, you should always have a publicly visible profile and remain connected to your customers utilising the methods previously described in the June 2014 Motor Equipment News.
Recently, one of my fleet clients called me to advise of an after-hours accident involving one of their Toyota Corollas when the driver clipped a bank on an unfamiliar road and rolled onto its roof into a paddock; with only minor cuts and bruises to the four young occupants.
Feel free to email me (peter179@ me.com) what you would have done if you had taken that call, and how your services would have been better than the rest. I will publish the best answer next month, and whoever submits it will hold the title of go-to guy of the month.
The point I am trying to make here is that business is business, but service should always be personal. People enjoy larger than life characters who stand out from the crowd. The Mad Butcher and Michael Hill are great examples of business owners making service personal, and in the process their stakeholders have become very successful. In the many years of being involved with the collision repair industry I have met many hard case characters who could achieve this kind of fame and success, however none so far have had the bottle to create a group of like-minded individuals and stamp their brand of personality all over the media. Can it be done? Of course it can. Will it work? Absolutely - there are many examples out there just not in this sector.
Nah, forget it. Far too radical – just winding you up! the Mad Butcher and Michael Hill Jeweller are examples of successful business models that couldn't possibly be applied in the New Zealand Collision Repair Industry - or could they?
Please note, no insurance company board members or CEOs were harmed in the preparation of this article. If you missed previous articles in Motor Equipment News go to www.onrequest.co.nz and click the Pockets of Excellence tab or email peter179@me.com.