CARSTAR on Track to Reach $1.5B Goal, Double Shop Count by 2020
PALM SPRINGS, CALIF., Jan.18, 2018—CARSTAR confirms that it remains on track to hit $1.5 billion in sales and open a 1,000 shops by 2020, achieving a revenue of $850 billion in 2017 alone.
Arlo Johnson, vice president of insurance for CARSTAR, confirmed that in 2018, the company is on track to achieve $1 billion in sales. Johnson also confirmed that the company is on track to reach 1,000 shops by 2020, saying that today, they’re in the low 500s as far as total shops in North America.
The company claims that large part that differentiates CARSTAR from other MSO brands is their involvement with a business model that promotes performance-based agreements (PBAs) versus DRPs.
FenderBender spoke with Johnson back in early 2017 about the dynamic of PBAs. He said a majority of the network participates in some type of PBA.
“A PBA can offer a sense of protection,” Johnson said. “With this type of agreement, you are a true partner to the carrier in a sense that underperformance is measured and addressed.”
Johnson this morning said that the company has a number of PBAs right now, and about 90 percent of the network shops participate in at least one PBA. Seventy-five percent of network shops participate in two PBAs, while 50 percent participate in three or more PBAs.