ESOP’s not a fable in this industry

Jan. 1, 2020
Moody’s Collision Centers
Moody’s Collision Centers roll out Employee Stock Ownership ProgramAlso read: Part and Parcel: When opportunity knocks, you’ve got to answer

In a small town, your reputation is everything. 

SnapshopShop name: Moody’s Collision Centers in Gorham and Scarborough, Maine. A third shop is being built in Bidderford, Maine.Annual sales: Declined to provide figures.staff: 10 co-workers in Gorham and 15 in Scarborough.Training: Moody’s has achieved I-CAR Gold Class status. Co-workers also receive training from the Maine Department of Economic and Community Development to develop problem solving and conflict resolution skills, among other training.  So says Shawn Moody, owner/operator of Moody’s Collision Centers in Gorham and Scarborough, Maine, who has subconsciously woven this belief into his business endeavors. A man with a humble disposition, Moody had his cover blown when his organization recently earned the Governor’s Award for Business Excellence this year. Not to say that others in his small hometown of Gorham (pop. 14,000) don’t already know that he has a different approach to business—it’s not all about the profit, and it certainly isn’t all about him.A recipient of awards from the local fire and police departments, Moody has made donations to 27 local agencies during the past several years. But more spectacular than his devotion to his community is his unrestrained advocacy for and pride in those who work at the two shops that bear his family’s name. “I just stuck a shingle with the Moody name on it outside the shop when I started it,” he says of his first foray into the industry in 1978. “I wish I could put all of their [staffs’] names up on the sign, too.” But it’s more than just a symbolic gesture; Moody has structured his business in such a way that staff members will one day have ownership of the operation. Moody is in the process of establishing an Employee Stock Ownership Program (ESOP). “It gives people the attitude that this is going to be a career, not just a job,” he says. To be eligible for the program, staff members must invest one year of employment at Moody’s. Once they are enrolled, they become vested after five years. Employees obtain stock in proportion to their earnings. “I’m very excited about it,” Moody says. “It’s become increasingly difficult for people to venture out on their own. With this program, they don’t have to take on the day-to-day costs of overhead and equipment. They will work hard to succeed.” The ESOP is funded by Moody’s and is federally regulated. Once employees become stockholders, they are entitled to voting rights. “I’ve always felt like it’s their own business,” Moody says. “All employees have a key to the shop.” Moody will continue to express this attitude toward those who work in the shops. He is aggressively pursuing expansion plans and is in the process of building a third shop in Bidderford, Maine. “We’ve had really good success with Greenfield locations because we are able to create our own culture,” Moody says. Along with keeping the company culture the same, Moody is also using the same shop layout that he does in the other two shops. “We’ll stick to the same square footage so customers are going to feel the same kind of atmosphere,” he says. After all, customer loyalty is the other half of the shop’s success equation. “Word travels,” he says of the service the shops provide. “It’s been our greatest asset. Loyal customers have been our foundation. We have three generations of customers now.”Moody started out in 1978 with a three-bay garage and has graduated to other business opportunities (See sidebar for more facts about Moody’s Collision Centers).

About the Author

Lisa Greenberg

Prior to joining ABRN, Lisa served as an associate and later editor of a trade magazine covering the greenhouse industry. During her tenure there she wrote everything from news stories to feature articles that were designed to help greenhouse growers increase their business' profitability. She also traveled extensively in an effort to better understand the greenhouse industry. As editor, she spearheaded a redesign and refocusing of editorial content. Lisa began her journalism career by earning a journalism degree from Eastern Illinois University where she worked as a reporter for the Daily Eastern News.

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