Value-added programs offered by major automotive paint companies have been around for years. But with a changing economy, paint company mergers and acquisitions, and the growing dependence on the Internet, these programs are evolving. Here's a look at several programs currently offered by paint companies, how some have changed and what may be next.

Akzo Nobel's Acoat selected

Acoat selected celebrated its 25th anniversary last year. Since its introduction in North America in 1992, Acoat selected has evolved with the needs of the industry and of Akzo Nobel's customers.

“When we originally brought Acoat selected to the United States and Canada, our customers wanted a bundled set of services that included management seminars, on-site assistance from a business development manager and '20 groups,'” said Mike Sillay, Akzo Nobel's services manager.

“However, the $5,500 annual fee and travel costs associated with 20 groups and management training classes made participating in Acoat selected beyond the reach of many of the best shops in the industry,” said Sillay. “That's why Acoat selected is evolving from a bundled set of services to a program with a lower annual fee and an 'a la carte menu' of service options that will allow more Akzo Nobel customers to benefit from the program.”

The company reports that because the program is more accessible, membership has tripled in size in the past year.

In addition to changing the program's structure, there are four new Acoat selected courses: Estimating Consistency, The Collision Administrative Process, Cycle Time Reduction and The Service Difference.

The Acoat selected program services will be evolving in two ways in coming years. The first has to do with what Akzo representatives call “alignment.”

All services will directly reflect the performance demands being placed on Akzo's customers - the shops - by the shops' customers. Akzo calls these performance demands the “Six Cs”: customer satisfaction, consistency of process, cost containment, cycle time reduction, connectivity and coverage.

The second area of evolution has to do with format of the services to be delivered. Historically, its value-added services were delivered in the format of classroom training and individualized consulting. While that will continue, according to company reports, a new format will emerge called “e-ssential Services.” One characteristic that distinguishes e-ssential Services from traditional formats is “collective cooperation of members” - some problems and issues facing collision repairers today are difficult or impossible to solve by individual efforts.

For example, a market need exists for an efficient network of high-performing repair shops. While consolidation may be one way to fulfill this need, Akzo suggests there are other ways including affiliation to its Acoat selected repair network. Other opportunities lie in the area of cost reduction through buying activities or a solution to the workforce availability problem.

As the name implies, e-ssential Services involve an element of e-commerce as part of the solution.

BASF's VisionPLUS

The VisionPLUS program was launched several years ago as one of the first value-added programs in the industry. It included a series of business management seminars, "Clear Thinking Conferences," dealing with shop management issues, and the Glasurit and R-M warranty programs. In the past year, however, the VisionPLUS program has been expanded and modified to include VisionPLUS OnLine, a Web-based, business analysis tool set for body shops. The package includes “vehicleupdate.com,” a shop-managed site that enables customers to check the repair status of their car over the Web. With this Web site, participating shops can create a customized storefront for its customers to visit when checking on their car.

The program also includes five half-day business management seminars: Measuring and Improving Performance and Productivity, Fast Track Production, Profiting from People Skills, Maximizing Estimating Performance and Achieving Complete Customer Satisfaction.

In addition to The VisionPLUS program, BASF is offering revised and updated technical training for Glasurit and R-M technicians. Classes are offered in six U.S. and three Canadian training centers and include hands-on instruction on R-M and Glasurit products, VOC issues, color adjustment and GM and Ford painter certification. Recently BASF launched a series of two-day classes covering the use of the new Glasurit Small-Damage Repair System. This new paint repair process allows small defects to be repaired quickly without clearcoating the entire panel.

“The Small-Damage Repair System represents a new revenue opportunity for collision repair facilities,” said Tony Dyach, Glasurit product manager, BASF Automotive Refinish. “It's designed for those small incidental repairs that fall under the normal insurance deductible and until now were too costly to do properly. The process is not a substitute for standard approved repair processes that require full-panel finishing.”

BASF has also stepped up its "eBusiness" offerings. In addition to developing a Web-enabled version of its SmartTrak2 color management system and VisionPLUS On-Line, BASF has launched several other Web sites. Bodyshopmall.com allows shop customers of BASF's Automotive Refinish Technologies (A.R.T.) to order all their paint and related supplies online. ColorSource Mall.com is a dedicated Web site for BASF's single-line jobbers in the company's ColorSource program. And PBEmall.com is for multiline jobbers.

As for future trends, BASF reports that the Internet and the digital revolution are already transforming the collision repair industry, like most other industries. Although e-commerce in general has suffered some reversals and a general slowdown in the pace of adoption, there is little doubt that the transition to an online business environment will continue and will likely accelerate as the predicted economic rebound picks up steam. The report also states the future of the industry is digital, and BASF will rely on the Internet, combined with Web-enabled color and inventory-management tools, to benefit its customers.

Training and content delivery is another area being transformed by digital media and the Internet. BASF reports the company is exploring “distance learning” technologies, video conferencing and satellite-based delivery of technical and management information.

The company is careful to point out, however, that technological advancements are not substitutes for customer service and mutually rewarding business-to-business relationships. “While BASF is committed to eBusiness leadership, we also remain vigorously committed to the growth and success of our customers, both jobbers and shops,” said a BASF representative. He added, “BASF management also believes in the future of the collision repair industry and remains strongly committed to the industry's associations and organizations.”

DuPont Performance Coatings

Continuing the development of its Web portal, DuPont Performance Coatings has added an area devoted to DPC Solutions - a menu of management training and consulting services focused on collision shop improvement.

The latest addition to the portal includes a free resume and job posting area, and product, marketing and training information. Users can personalize the site with national, international and local news, as well as information on stocks, weather and more.

“Whether the goal is to increase shop efficiency or productivity, improve customer service indexing, redesign workflow, or initiate a sophisticated marketing program, DPC Solutions provides options to help shops get what they need,” said Fred Wissemann, DPC segment manager.

DPC Solutions is a compilation of many of the company's value-added offerings. A full explanation of DPC Solutions appears on the DPC Web portal, www.performancecoatings.dupont.com. And following is a look at the latest value-added programs for DuPont, Standox and Spies Hecker, three brands that fall under the DuPont Performance Coatings umbrella.

DuPont's AOQ and AOQ- Commercial programs:

Since 1992, Assurance of Quality (AOQ) has been known as the DuPont “Standard of Excellence” shop program for collision repair shops. The “solution-driven” program was designed to assist members in marketing and managing their collision repair business. Elements of the program include co-branding with the DuPont brand, a national transferable lifetime warranty, customized shop marketing materials, third-party customer service indexing, and a 20-group program for independent shops and dealerships. AOQ also offers consulting services and management seminars.

Now, AOQ-Commercial shops will be eligible for many of the same benefits that promote the growth of AOQ shops through exclusive programs and services.

The new DuPont AOQ-Commercial program was launched in January to replace the Certified Commercial Refinisher Program. Alan McConachie, program manager for AOQ-Commercial, describes the program as expansion of DuPont's AOQ program to include commercial refinishing shops.

“AOQ-Commercial offers business support and image enhancement to help shops grow profitably,” said McConachie. Benefits to shops include a new custom marketing program offering business building marketing materials, business improvement resources such as customer service indexing and training programs, and new AOQ-Commercial product warranty vendor partnerships. The program also provides a forum to set industry standards for commercial refinishers, and program publicity and promotion by DuPont.

“As for the future of these programs, we will be looking to our customers for more guidance.” McConachie said. “For instance, AOQ-Commercial will eventually be guided by a board of governors made up of a few of the member shops. This board will determine the needs of the membership and provide program management, with input from DuPont Performance Coatings.”

CCRP materials are no longer available, but current CCRP shops will be invited to join AOQ-Commercial and will not be charged a start-up fee.

Standox's PIE program:

The Partnership in Excellence (PIE) program is focused on business development. Mike McKenzie, DuPont European brands program manager, heads the Standox and Spies Hecker value-added programs. McKenzie said five areas of competency critical to successful body shop operations have been identified: marketing, finance, human resources, productivity and strategy. Program members can select from a menu of training and support options in these business disciplines.

“Like college courses, PIE training grows successively more in-depth as the member progresses through the 'curriculum track,'” said McKenzie. “By offering support in a menu format, PIE offers the proactive shop the flexibility to focus on training where it is needed and at a level appropriate to the current skills of its management staff.”

Current features include networking through user group weekends, a lifetime warranty, Web-enabled rebates, strategic partners for business services and customer service indexing, and a toll-free hotline. New this year is the addition of 20 groups. The first business council group took place in Chicago last month. The format allows groups to be divided into three categories: independent shops, multiple shops and dealerships.

Standox has also teamed with Seeprogress.com's Dave Henderson to offer its customers Web page design and online vehicle tracking for shop customers.

Spies Hecker's Color Club:

The Color Club program is designed to improve business strategies with a comprehensive package that includes seminars, business focus groups, financial benchmarking, consulting services, warranties and a toll-free hotline. Partnerships are also available through the program that provide business services, customer service indexing, shop management, worker's compensation and health insurance services.

Spies Hecker recently renamed its business focus group Stellar Performance Group (SPG). Along with the name change comes the launch of the SPG Web site. The informational site provides members and prospective members with news about upcoming events and group sponsors. A virtual tour of some program members' facilities is also available. To visit the site, go to www.dupontperformancecoatings.com and click on Stellar Performance Group.

McKenzie said Spies Hecker has plans to launch several new marketing items for its members later in the year. “We bring added value every day by launching new and better products to the shops each year. Our programs are designed to improve our members' shop operations and front office with an array of services and vendor partnerships we provide to them,” said McKenzie. “I feel if we can make shop owners better businessmen and women and more efficient, then loyalty to our brands and growth of our added value programs will come.”

PPG/ICI's CertifiedFirst Network

A little over a year ago, PPG announced the beginning of the CertifiedFirst Network, a national group of dealership and independently owned auto body repair facilities that are verified by independent third parties (Underwriters Laboratories Inc. and Customer Research Inc.). This evolving program provides marketing and management tools that help participating shops keep pace with industry changes and build closer relationships with their customers. Mary Kimbro, director of the Certified-First Network, reports that in its first year, more than 1,600 shops applied to join the network.

“Today, we have more than 800 participating shops and 500 more in the verification process,” said Kimbro. “CertifiedFirst Network shops are in 44 of the 48 continental United States, and in five of the nine Canadian provinces.”

Even with the program's growth, the verification standards have remained high, according to Kimbro. About 30 percent of applicants don't qualify to participate in the program on their first attempt. “Our focus is less on paint products than on ensuring high levels of customer satisfaction and helping participating shops grow their business,” she said. “Based on first-year success, we think the program benefits are truly attractive to auto body repair shops.”

The auto body repair industry is changing, with increased competition, consolidation, insurer shop ownership and increased direct repair programs (DRPs). But PPG's research shows customer service and satisfaction are still critical. The company is introducing its “When Will My Car Be Ready?” Web site utility to elevate the business-building potential of the network. The Web site allows shop owners to communicate the status of vehicle repairs to customers online and helps the shop streamline its in-house repair tracking function. The shop's customers can use a password to find out where their vehicle is in the repair process.

Sherwin-Williams' A-Plus Program

New from Sherwin-Williams is a special partnership between the A-Plus Program and Universal Underwriters. Through this arrangement, A-Plus members will have access to a full line of business and garage keepers insurance, as well as a full line of benefits members can offer to their employees. These benefits include health care insurance, dental, vision and even a 401(k) retirement savings program.

Sherwin-Williams also recently provided members with a CD program manual that details all the benefits of A-Plus membership and provides customers with everything they need to get the most out of the program. Future updates to this manual will be available online under secure access so members can get the most recent information available about A-Plus.

Over the years, the A-Plus program has evolved from one that recruited new members to one that Sherwin-Williams believes customers are anxious to join because they recognize the opportunities it offers. Sherwin-Williams has also recently enhanced its accessibility to customers on the Internet. A-Plus members can use the Sherwin-Williams Automotive E-Store to order product, download the newest color data and view technical data sheets. Sherwin-Williams also provides vehicle owners with an Internet shop finder that can direct them to the A-Plus shop nearest to their home or business.

When asked what the future holds regarding value-added programs, Sherwin-Williams representatives said value-added programs appear to be growing in membership and offerings - and A-Plus is no exception. The company continues to work on projects and program elements that will help members become the most successful shops in their markets. As a result of Sherwin-Williams' commitment to provide A-Plus members with the tools of success, the company has enjoyed membership growth that has consistently exceeded Sherwin-Williams' goals each year.

Editor's note: This report does not include all value-added programs available. For more infomation about the products and services offered by paint companies, contact the companies directly.

RATE THIS ARTICLE What do you think of this article? Your input will help AutoInc. develop additional articles on this subject. Share your thoughts! Your name Your e-mail address

MOST ACCESSED ARTICLES Fuel Injection Service, Not Just Cleaning The Art of Extraction EGR Systems: Operation and Diagnosis Proactive Target Marketing:_Rethinking Your Business Strategy Engine Performance: HO2S Diagnostics MOST E-MAILED ARTICLES Developing Employee Potential How Critical Thinking Can Help Your Business How to Diagnose the Ford Glow Plug What to Look for When Shopping for the Right Shop Management Software Putting a Price Tag on Complaints

AutoInc. Web Site | ASA Web Site | Georgia Case Profiles Diminished Value | Hybrid Technology | Value-Added Programs | Getting the Edge | Guest Editorial | Tech to Tech | Tech Tips | Shop Profile | Net Worth | Stat Corner | Chairman's Message