Value-added Programs: Helping Auto Body Shops Prosper
A Look At The Programs Offered By Paint Companies
by Ben McNamara The collision repair industry is changing and regardless of your shop's size, volume or number of employees, it is a complex and competitive business. Maintaining a competitive edge is accomplished by operating efficiently and profitably, and doing so requires adequate management techniques, personnel and equipment.
Paint companies offer various programs to assist shops, such as management systems, facility planning and design services, technical training programs, hot lines, management training and warranty programs. In recent years, paint companies have packaged many of their services into comprehensive "value-added programs." All of these programs serve to increase productivity and profitability of the shops.
In most of these programs, there is a fee to participate and a set of criteria that the shop must adhere to for eligibility. In return, the shop receives access to a number of services that are either included in the cost to participate or are offered at reduced rates.
All of the programs require the shop to exclusively use the brand of paint associated with that program.
Akzo Nobel
Originally offered to European collision repair centers more than 15 years ago, Akzo Nobel's Acoat selected program was introduced into the United States in 1993.Participating shops are offered fundamental and practical education, 20-Group idea sharing, and on-site consulting to assure implementation of both education and ideas.
The various components of Acoat selected include financial analysis, forecasting, budgeting and standardizing of procedures. In addition, the program allows members to better monitor such areas of concentration as employee relations, facilities planning, productivity analysis and computer skills.
An experienced Akzo Nobel business development manager is assigned to each Acoat selected partner. After setting business objectives, they work together to develop a comprehensive business plan. The business development manager works with the shop to determine its needs.
In addition to specific benefits, the program provides networking with other shops worldwide. Partners are also qualified to receive additional promotional support, advanced training and other customized services.
Shops must meet a standard set of criteria and pay an annual fee to participate. The program is tiered, with all members required to participate first as associate members. To become an associate, the shop must meet and maintain specific, strict facility appearance and equipment requirements; offer specific warranties; maintain a computerized management system; conduct an ongoing management and technical staff training program; and dedicate time and resources to the Acoat selected program.
Demonstration of improved performance as an Acoat selected associate entitles participants to full partnership in the program.
American Standox
American Standox's Partnership in Excellence (PIE) program, launched in November 1995, has been designed around the principle of networking. It uses this principle to maximize productive and profitable interaction with Standox shop peers and industry experts.PIE has teamed up with a number of management and consultancy businesses to offer training support for technicians and managers. In addition, shops receive a customer service indexing (CSI) program and a financial analysis of their shop as compared to other shops of similar size and volume. Collision repair design services are offered to analyze shop layout, procedures and equipment.
Other benefits include customized business marketing plans, group conferences and a frequent buyer program where shops receive credit toward training courses and seminars, promotional items, and various trips and tours.
Members of the program must meet or exceed an extensive set of requirements, including following specific business practices and operations; maintaining a clean work environment; using proper equipment; possessing proper business credentials and licenses; using a computer estimating system; and supporting ongoing training for management and technicians.
There is an enrollment fee of $950 to participate in the program. Annual dues are $450.
BASF
Introduced to North America in January 1996, BASF's VisionPLUS program consists of several value-added services delivered by both internal business specialists and several business partners.The Layout & Process Management (L&PM) consultation service helps create a long-term plan for change management within a busy shop environment. It is delivered on-site by two business development specialists, and lasts up to two weeks. The shops will then receive a report with recommendations to improve productivity. Quarterly follow-up meetings provide ongoing support throughout the implementation process.
FirstStep Analysis is a one- to two-day analysis of a shop's operations. The program is used to review several key business control points that impact a shop's bottom line, and then recommendations are made on improving the operation.
The Professional Business Management Series offers four 4-hour educational seminars designed to enhance managerial effectiveness.
The BodyShop Video's "Business Development Group" Program consists of a menu of results-oriented products and services, including an in-depth profile of the operation which leads to a custom-developed business plan. As implementation begins, the shop is provided with education, resources, information, as well as personal consultation and support.
The Glasurit and R-M North American Warranty Programs include lifetime refinish coverage, technical training and certification, marketing plan development ideas, effective sales training and CSI tracking, among other benefits. Shops must meet certain criteria to participate in these programs, including projecting a professional image, using specific products, maintaining adequate equipment, keeping a safe and healthy shop, and satisfying painter certification requirements.
Shops interested in either Layout & Process Management or FirstStep are qualified by BASF representatives before being added to the delivery schedule.
DuPont
DuPont's Assurance of Quality (AOQ) program was originally started in Europe in 1987, and was introduced in the United States in 1989. The AOQ program offers a package of business development tools and techniques, management systems, marketing skills and services, and merchandising support materials. Some of the features include a financial analysis service that compares the participating shop to other shops of similar size and volume; meetings with other AOQ owners and managers in the shop's region; and management seminars.In addition, AOQ partners have private access to a toll-free hot line offering answers to product, technical and color questions. A selection of paint warranties are also available. Shops receive a do-it-yourself shop layout kit, and special discounts are offered to partners for customized layout and design services by professional shop designers.
Participants receive certification training and new product training for AOQ shop-certified painters.
AOQ partners are included in the Official AutocheX Directory of Collision Repair Facilities. Partners receive customer satisfaction survey cards, quarterly reports on their ranking vs. other AOQ centers, and a monthly newsletter on CSI and business management trends.
AOQ partners are provided with marketing materials and optional advertisements and commercials that can be customized.
To participate, shops must have an orderly appearance; properly maintained equipment and tools; proper technical sheets and guides; current color management systems; must meet certain health requirements and promote shop safety; and have at least one certified paint technician.
The cost to participate in this program is $1,595 for one year or $1,995 for two years. Renewal rates are $600 for one year and $1,000 for two years.
ICI Autocolor
ICI Autocolor launched its Partnership Plus program in October 1995. All of the program elements are integrated yet customized to the specific needs of an individual shop, helping it achieve improved marketing and sales, a more efficiently run shop floor, and better financial and organizational controls.This program offers business development courses, tools and services designed to help shops increase business, including a warranty program and a shop marketing kit.
Other services and courses are available in the areas of body shop layout and design; product and color training; and customer services.
Additional benefits include toll-free support, newsletters, special prices on materials, promotional materials, exclusive business services and custom development plans.
All shops can qualify for the Partnership Plus program. There are also no up-front fees or annual fees; shops pay for services, materials and courses that they use.
PPG
The Maximum Velocity Performance (MVP) program was started in June 1995. This program offers shop owners and managers consultation and guidance for improving the shop's productivity in different aspects of its business. Through the MVP program, shop owners and managers are provided with shop management and business development services; marketing support; and information on refinish technology, color matching tools and services, environmental compliance, waste management and safety. Shops also receive management training, a body shop design and layout service, and a collision shop operations manual.A major element of the program is the MVP Productivity Analysis service, which consists of a thorough evaluation of the collision repair operation for each shop.
With this information, PPG productivity experts calculate key measurements to analyze productivity and PPG analysts develop suggestions for the shop on how to improve productivity. After analysis, MVP experts offer suggestions on improving performance to maximize growth and productivity, and shops receive quarterly reports by which to continually upgrade and maintain their facilities properly.
Acceptance in the program also includes enrollment in the PPG certification program, which enables the shop to offer the PPG Paint Performance Guarantee. This certification program also offers technician training, which includes a technician hot line.
MVP participants are also offered roundtable group participation and PPG business training courses taught by expert shop owners at regional centers.
The program consists of three phases. The first phase is free and includes a customized report on the shop's strategies and recommendations on improved performance. Any shop owner can participate in the first phase, regardless of the paint line used. Thereafter, fees are based according to individual services pursued by the shop.
Sherwin-Williams
The Sherwin-Williams Automotive Finishes A-Plus program was started in January 1996. A-Plus membership provides an opportunity for shops to receive a package of value-added services.Participants receive a shop analysis to determine the strengths and weaknesses of the shop in quality control, design and layout, and equipment utilization. Shops also receive a discount on a service where Sherwin-Williams engineers help design a new facility or remodel the existing shop to achieve the best work flow and efficiency.
In addition, participants have access to a two-day management training course to improve shop productivity; a CSI resource; a guide to OSHA rules and regulations; computerized services; and a program that provides a detailed analysis of the shop's financial performance.
A marketing program covers market analysis and planning, sales techniques, customer service and marketing communications.
Shops receive access to a merchandising and signage program, and the opportunity to work with other A-Plus shops on planned joint marketing activities.
Membership in the A-Plus program is reserved for shops that meet specific membership criteria. Shops must have adequate equipment; adhere to certain practices and standards; have certified technicians; possess an ongoing employee training program; use a computerized estimating system; remain clean and safe; and must use certain warranty programs.
Participants pay a one-time fee of $495 for the program. For owners with multiple locations, each additional shop can join for $295. As future components are added to this program, customers can subscribe to and buy these components separately.
Spies Hecker
The Spies Hecker Color Club was launched regionally in 1995, and the program's management seminars are currently offered regionally for Color Club members.There is an assortment of management seminars available to participating shops as part of the annual fee. Other benefits of membership include special travel benefits, consulting services, third party CSI tracking, a Color Club newsletter, up-to-the-minute information via fax, product evaluation of new products, business insurance, a preferred leasing program, an EPA/OSHA compliance program, Automotive Management Institute (AMI) approved seminars, and an on-hold telephone message program.
To participate, shops must satisfy a set of uniform standards and pay an annual fee of $99.
Martin-Senour
Through a partnership with the National Automotive Parts Association (NAPA), Martin-Senour participates in the NAPA AutoCare Collision Center Program. Started in August 1995, the program offers training to keep technicians' skills up-to-date, marketing tools, business management education, parts and supplies, and support for growing a business.Specific benefits of the program include a Customer Satisfaction Index (CSI) program; a "90 Days Same-As-Cash" program; Collision Repair Design Services to help shop owners raise output and efficiency levels in the production area; an exterior design program to professionalize the shop's exterior; Martin-Senour training courses on topics such as paint and color adjustment and three- and four-stage refinishing; an operational analysis; a Peace of Mind Guaranteed Repairs Warranty; publications and a diagnostic hot line.
To participate, shops must adhere to specific criteria and pay an annual fee of $495. The criteria includes making NAPA their primary supplier and first call for replacement mechanical parts, supplies and refinish products. Shops must use the Martin-Senour Tec/SYSTEM as their main refinishing system, and use these and related products according to Martin-Senour guidelines. They must employ technicians who are certified in refinish and body-repair categories, and provide an ongoing employee training program. Participants must maintain a refinishing area that complies with safety, environmental and legal regulations, and must also have a clean, professional environment for customers. In addition, shops must satisfy a set of equipment and procedural requirements, and adhere to the NAPA AutoCare Collision Center Code of Ethics.
This information was compiled from materials provided by each paint company. To find out more information about one of these programs, contact your local paint company representative.ASA Main Page || AutoInc. Main Page
Automotive Service Network Programs: Components And Requirements || Value-added Programs: Helping Auto Body Repair Shops Prosper || NHTSA Air-bag Proposals Being Reviewed, Final Rules Near || Thinking About Expanding Your Shop? || Guest Editorial: New Educational Horizons || Tech To Tech || Tech Tips || News Briefs || Taking The Hill || Around ASA || Shop Profile || Net Worth || Chairman's Message
AutoInc. Magazine ®, Vol. XLV No. 4, April 1997