Corporately managed insurance sales saw double-digit growth in 2011 as CARSTAR expanded its MSO network, delivering the second highest annual increase in the network’s history. It also was a record year for rebates generated to the system.
CARSTAR has recently added 17 new CARSTAR locations throughout Texas, Florida, Washington, Missouri, New Mexico and Massachusetts. It also announced its expansion into California.
The performance of the new stores was strong, with new store revenues increasing 50 percent over 2010, the company said. CARSTAR credits the performance to the quality level of stores it is bringing into the system and benefits of its value proposition. “During 2011, we made a number of changes to strengthen the foundation of CARSTAR and set the stage for growth as the economy improves,” said David Byers, CEO of CARSTAR Auto Body Repair Experts.
“We surpassed our financial objectives for the year and continue to operate with a strong balance sheet and an overall strong financial position. This year, we are optimistic about the growth opportunities in the marketplace, both for our current store owners and new store additions, and look forward to fulfilling our potential as North America’s largest MSO network.”
For 2012, Byers outlined four key objectives for the company: Growing existing store revenues and profit through operational improvements across the CARSTAR network.
This includes increasing stores’ participation in the EDGE program, which drives work process improvements to deliver repeatable outcomes; expanding the financial focus groups to allow more stores to participate; and strengthening the business group network.
CARSTAR also enhanced its regional service team with collision industry veterans to focus on these operational improvements. It added new stores through an aggressive expansion effort in 2012, including the launch of CARSTAR in California.
CARSTAR expects to add more than 50 new stores this year. It also doubled its business development team with industry veterans – led by Ryan Keller, whose experience includes Driven Brands, parent company of MACCO, with Keith McCrone, formerly of FIX Auto and Mitchell, leading the California market, and Mark Behrens, previously with Puroclean, a franchised emergency services company, leading the effort in the Northeast.
Adding new MSO insurance relationships by strengthening the network of multi- store operators who can guarantee repeatable outcomes and good KPIs, provide centralized management system data about their stores and deliver excellent, measurable customer satisfaction.
Corporately, CARSTAR is in active discussions about MSO-type agreements with the top 20 carriers. Fully deploying the CARSTAR Solution, the proprietary centralized management system that helps stores improve operational efficiency, financial management and data measurement.
To date, more than 50 stores have implemented the system and some 100 stores are currently being deployed. CARSTAR expects to have all U.S. stores completed by year-end. “We have an incredible network of independent store owners across the country, and we’re proud of what we’ve accomplished working together over the past year,” said Byers.
“This shared vision and united focus on achieving our goals will deliver new growth for their businesses this year, and help build the entire organization for the future.”
For information and store locations visit www.carstar.com.