Editor's note: This is the second of a two-part series reporting on where shop owners find information to assist them in making business decisions and managing their business. (Part I).

Shop owners and managers make countless decisions every day. These decisions extend well beyond those involving servicing your customers, diagnosing, troubleshooting and repairing their vehicles.

You are also faced with decisions involving personnel, marketing your business, government and regulatory compliance issues and purchasing decisions, among others.

Do you rely only on yourself when making a business decision? Or, over time, have you developed resources that you trust to guide you when contemplating different options?

The shop owners and managers interviewed for this article have cultivated a number of sources for information. It's impossible to be an expert on every issue you face when running a business. Fortunately, it's easy to find advice on virtually anything you're likely to encounter.

Last month, we focused on personnel and marketing issues. This month's article takes a look at purchasing decisions and government regulations.

Equipment and Products
Purchasing equipment for your shop often requires a substantial financial investment that may take months, or even years, to fully pay for itself. For this reason alone, few shop owners make equipment purchasing decisions without doing some investigative research.

There's also the question of buying vs. leasing equipment that must be considered, particularly for large ticket items.

Nick Gojmeric, owner of Collision Plus in Swansea, Ill., said he relies primarily on "word-of-mouth" referrals when buying equipment or products, placing a great deal of trust on the experiences others have encountered with both the equipment itself as well as the manufacturer.

"We try not to have every salesman calling on us all the time," Gojmeric said. So, rather than relying on a product or manufacturer representative, Gojmeric has made the conscious decision to seek the advice from his peers who have firsthand experiences with the equipment he is considering for his shop.

Gojmeric said he uses this same philosophy when buying products. Rather than turning to a sales rep, he places more emphasis on his own experiences and those of fellow collision shop professionals.

For Gojmeric, the vendor is just as important as the product. "When buying products, service is the key. Today, service means having a vendor who will be there when you have a problem, holding your hand.

"A good vendor is a partner is my business," Gojmeric said.

Charlie Elder, owner of Ray Gordon Brake Service in Tallahassee, Fla., said trade shows and industry publications are his primary sources for information when he's investigating equipment.

It's through magazines that he most often becomes aware of new equipment and technology, Elder said. But, before buying, Elder said he prefers to see the equipment himself.

When convenient, trade shows have been the most efficient method Elder has found for researching equipment and products. Trade shows aren't always convenient, however.

When decisions need to be made before he has the opportunity to attend a show, Elder said manufacturers will sometimes bring equipment to the shop and demonstrate it.

Aaron Clements, president of C&C Automotive in Augusta, Ga., does not like to buy equipment unless he has the opportunity to use it for two or three days, he said.

Because he wants this hands-on experience before making a large investment, Clements said he would like to see manufacturers establish central locations where they set up several pieces of equipment. Shop owners and technicians, then, could actually take vehicles to these sites and use the equipment.

Without using the equipment yourself, Clements said, you cannot be fully certain it will meet your needs or preferences.

Until Clements' idea becomes a reality, he said his method for gathering information will be what it's always been, and that is talking to others in the industry.

"Whenever I go to technical training classes, I find out what type of equipment the instructors prefer. I also talk to other technicians and see what they use and how it works," he said.

"Whichever manufacturer you're talking to, they always have the best," said Reggie Denney, owner of Reggie Denney Auto Repair in Eden, N.C.

Rather than relying on the manufacturers for guidance and information when faced with an equipment purchasing decision, Denney said he turns to his peers. He finds out what they're using and their level of satisfaction with the equipment and vendor.

Denney said that he is in a 20-group whose members come from all parts of the nation. The group meets three times a year, giving him the opportunity to not only seek peer advice from shop owners he knows locally, but from across the country as well.

When buying less costly parts and products, Denney said his own experiences with the products and suppliers themselves determines where and with whom he spends his money.

Government Regulations
Regardless of one's individual opinion about governmental involvement in automotive businesses, the fact is legal regulations and complying with those regulations play a key role in many business decisions.

While the federal government is often the most visible regulatory authority, particularly through the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA), local, county and state agencies can also implement regulations that affect your business.

Increased local authority is particularly prevalent in areas that have heightened environmental concerns. This primarily includes densely populated areas where governments are trying to reverse high pollution levels. Conversely, pristine areas or locations with highly sensitive environmental conditions are also subject to increased governmental regulations.

The latter is true for the Puget Sound area in the Northwest, where Mike West's shop is located and where local environmental regulations are more stringent than federal EPA requirements.

West's business, Southtowne Auto Rebuild, Inc. in Tukwila, Wash., is subject to more regulations than most shop owners elsewhere encounter.

West said that in many situations, shop owners have the option to shape local regulations or to be shaped by them. "Fifteen years ago when regulations were first being placed on us, we made a decision to get involved in writing the regulations rather than having regulations we couldn't live with.

"We had seen instances where regulations outstripped technology, making it impossible to comply with them," West said.

"We got involved with state, county and local regulators and started a conduit of information where they communicated with us and vice versa. Consequently, we have an excellent relationship with the regulators."

West said he neither resents nor resists the regulations placed on his business by government. What some consider a negative, he has turned into a positive.

Those shops that don't want to comply with regulations so often seem to be the ones driving down the image of the repair industry. They either comply or get out of this business, he said. Frequently, those who get out do the entire industry a favor by their exodus.

With so many regulations being placed on Southtowne Auto Rebuild, how does West stay informed and educated to make certain he remains in compliance? "Primarily from the government source itself," West said.

Generally, governmental entities are making an effort to better disseminate information to those affected by their regulations. The federal agencies, in particular, have taken great strides in getting information online so it can be accessed quickly by shop owners.

The Automotive Service Association (ASA) has also compiled information from more than 2,000 sources and has made it available, free of charge, to its members. The ASA Information Center can be found on the association's Web site (http://www.asashop.org) in the Members Only section. ASA members without Internet access can call the association toll free at (800) 272-7467 to receive material from the Information Center.

When seeking information about governmental regulations, Charlie Elder said one source he turns to is ASA. In addition to AutoInc. magazine, which reports each month on the activities coming out of Washington, D.C., the association also monitors and reports on all 50 state legislatures.

Here again, the ASA Web site is a vital tool for archiving and reporting this information. The state legislative and regulatory analysis, online in the Members Only section, is updated regularly and allows members to access information that's specific to their state.

Nick Gojmeric reported that he relies on trade journals to keep him informed of government regulations. The collision shop owner specifically listed AutoInc., ABRN and Body Shop Business as publications that provide good coverage on these matters. According to an AutoInc. survey, popular sources of mechanical- related information include Motor, MotorAge, Motor Service and Import Service.

With government regulations, it's critical that shop owners remain informed about the laws and how to best comply with them. With different agencies and different levels of government authorized to exercise authority over repair businesses, staying informed is not a simple undertaking. That's one reason ASA has invested time, resources and personnel into compiling this information and making it available to its members.

Being in compliance, Elder said, "Directly affects my bottom line and can make a difference whether I'm in business or out of business."

When considering the impact government has on his business, in the form of multiple regulations, Elder said, "Government is your business partner, whether or not you issued them any stock. You may not want them to be your partner, but they are. With any partner, it's important to know what they're doing."

Elder concluded, "Ignorance of the law does not mean you don't have to comply with the law."

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