Cars Collision Centers seek out business 24 hours a day, 365 days a year.
SnapshopName: Cars Collision CentersLocation: Schererville, Ind. Founded: 1998 Number of Shops: 27 (eight in Indiana, 11 in Illinois and eight in Colorado).Number of
employees: More than 500monthlyRepairs: 3,000 (avg.)Yearlyrevenue: $57 millionCustomerservices: Towing, valet service, lifetime guarantee on work.Sooner or later it had to happen. The same market forces that helped create such customer conveniences as 24-hour Laundromats, supermarkets and pharmacies eventually had to produce some “open all night” collision repair services. Enter Indiana-based Cars Collision Centers, a 27-facility business that concentrates its tri-state operations around a customer service center that is open 24 hours a day, 365 day a year. The 4,000-sq. ft., Schererville, Ind., Customer Care Center handles all incoming service calls, sets up towing and valet services and contacts customers with updates on the progress of their vehicles’ repairs. Because the center is plugged into each shop’s service schedule, it efficiently routes business to the nearest Cars Collision facility whose work schedule permits the timeliest repairs. “The call center lets us make the best use of all of our operations,” says Cars Collision Director of Sales and Marketing Dawson “Rob” Robbins. “Because the work gets done more efficiently and quicker, it saves money for customers and insurers.”The customer service center also serves as the headquarters for Cars Collision’s board of directors, which oversees the company’s ever-growing operations in Illinois, northern Indiana and Colorado. The company opened its first shops in June 1998 with the purchase of two Northwest Auto Body facilities in Chicago. Since then, the company has grown to 11 metropolitan Chicago facilities, eight Indiana shops and eight Colorado shops, which were added as part of a deal to buy several Indiana shops. While the company continues to buy out existing shops, it prefers to grow by opening new businesses at greenfield sites. This way, Robbins explains, they can start fresh rather than changing the operating practices of another business. “We run what I call ‘Four Star Hotels for Cars,’” Robbins says. “We want our shops out in public view, not hidden back in an industrial center.” When they buy a building, they spend about two months putting it through an elaborate remodeling process, making sure that the storefront and customer service area have the same logo and color scheme as the other facilities. “That way, when customers drive by or walk in, they recognize us and see that they’re going to get the same quality service as in any of our other shops,” he says.
To help ensure consistency of service throughout its enterprises, Cars Collision hires managers from within the company, while a regional trainer teaches and then tests new technicians and associates on the company’s operational standards. Cars Collision also audits each of its facilities twice a month to determine the integrity of its practices. Weaknesses are then identified and employees receive additional training to strengthen overall performance.These practices permit Cars Collision Centers to repair about 3,000 cars a month and generate more than $57 million in revenue a year. Robbins and company CEO Don Mikrut point out that the company accomplishes this with facilities that are different in size and internal layout. Mikrut says the shops average about 16,000 to 17,000 sq. ft., but they range from 5,000 to 40,000 sq. ft.
Mikrut and Robbins are currently looking to open more of these shops. In 2003, they hope to add five or six facilities in Illinois and Indiana. Future plans also include completing a customer access function on the company’s Web site, so customers can log in and find the status of their vehicles. Cars Collision will also spend the next year evaluating the progress of its newest business venture: capture centers. While searching for ways to attract new business in areas that refuse to grant zoning variances for shops, Cars Collision came upon the idea of opening “branch offices,” where employees could direct work from these areas back to the company’s facilities. These branch offices, or capture centers, would employ estimators and office personnel who could supply work estimates, towing and car rental services. The idea is that customers can drive into a capture center, receive estimates and then have their vehicles towed to a nearby Cars Collision shop while vehicle rental arrangements are made. Once the work is completed, Cars Collision valet service returns the vehicle to the owner. On Jan.14, the company opened its first capture center in Joliet, Ill., as a way to draw business to its nearby Rockdale shop. During its first four days, the center produced 30 estimates. “So far it has worked out very well,” Robbins says. “And the center fits into our customer service formula since it shortens cycle times and lowers costs.” If successful, the capture center could mean much more than that. The concept could change the landscape of the collision repair industry—much the same way that 24-hour-a-day service promises to. CAPTURING BUSINESS:
“Branch office” could be just the ticket
Looking for a way to reach out into neighboring communities and bring some much-needed business back into your shop? The business model for Cars Collision’s capture facilities provides one possible answer. Cars Collision is in the early stages of determining if this business model works and will be profitable enough to support the cost of additional real estate, technology and personnel. Before breaking ground on your own branch office, consider the following factors. The Right Solution
Virtually all shops experience a lull in business. This can be attributed to a number of causes including competition, economic conditions, poor public perception, etc. Before searching for a way to increase business, examine your shop and determine why it isn’t performing to full capacity. Opening a capture center, or something like it, can be an expensive proposition. Your business might be better served by more practical, less expensive options such as increased advertising or by adding more services. Consider consulting a marketing expert who knows the collision repar industry and can offer advice pertinent to your shop and particular financial situation.Location, Location, Location
If a capture center seems right for your business, you’ll need to open your center in an appropriate location. You’ll need to find an area with (1.) a significant driving population and (2.) a need for autobody services. You’ll also need to locate a building and area large enough to suit your needs. If you’re following Cars Collision’s model and offering towing and rental services, consider whether you’ll need space for tow trucks and rental cars. Cars Collision runs a towing company, so it has trucks on site. As for rental car services, Cars Collision made sure to move the facility next to a rental agency. If you’ll be contracting out for either of these services, make sure they’re conveniently located. You don’t want customers standing around for long periods of time waiting for a tow or rental.Resources
Besides the initial investment in space and materials, you’ll need to consider personnel costs. Plan on having at least two people at the capture center. At least one, of course, must be an estimator, and you’ll need someone else to assist with scheduling work and arranging the tow and rental services. If business is good, you may need to hire more estimators. Also, you’ll need to figure how much extra work your shop(s) can effectively handle. If you acquire too much extra business, cycle times could suffer and you could end up angering customers and losing the extra business.Flexibility
You could find yourself tweaking your business model in order to make it profitable. This could involve making changes such as sharing space with a towing or rental agency to save money or even restricting operating hours to keep personnel costs down. Whatever the case, you’ll need to keep a sharp eye on your investment. Be open to criticism and advice, and don’t hesitate to query customers on their experiences in the capture center. Since customer response will ultimately make or break the center, this input is invaluable.
To help ensure consistency of service throughout its enterprises, Cars Collision hires managers from within the company, while a regional trainer teaches and then tests new technicians and associates on the company’s operational standards. Cars Collision also audits each of its facilities twice a month to determine the integrity of its practices. Weaknesses are then identified and employees receive additional training to strengthen overall performance.These practices permit Cars Collision Centers to repair about 3,000 cars a month and generate more than $57 million in revenue a year. Robbins and company CEO Don Mikrut point out that the company accomplishes this with facilities that are different in size and internal layout. Mikrut says the shops average about 16,000 to 17,000 sq. ft., but they range from 5,000 to 40,000 sq. ft.
Mikrut and Robbins are currently looking to open more of these shops. In 2003, they hope to add five or six facilities in Illinois and Indiana. Future plans also include completing a customer access function on the company’s Web site, so customers can log in and find the status of their vehicles. Cars Collision will also spend the next year evaluating the progress of its newest business venture: capture centers. While searching for ways to attract new business in areas that refuse to grant zoning variances for shops, Cars Collision came upon the idea of opening “branch offices,” where employees could direct work from these areas back to the company’s facilities. These branch offices, or capture centers, would employ estimators and office personnel who could supply work estimates, towing and car rental services. The idea is that customers can drive into a capture center, receive estimates and then have their vehicles towed to a nearby Cars Collision shop while vehicle rental arrangements are made. Once the work is completed, Cars Collision valet service returns the vehicle to the owner. On Jan.14, the company opened its first capture center in Joliet, Ill., as a way to draw business to its nearby Rockdale shop. During its first four days, the center produced 30 estimates. “So far it has worked out very well,” Robbins says. “And the center fits into our customer service formula since it shortens cycle times and lowers costs.” If successful, the capture center could mean much more than that. The concept could change the landscape of the collision repair industry—much the same way that 24-hour-a-day service promises to. CAPTURING BUSINESS:
“Branch office” could be just the ticket
Looking for a way to reach out into neighboring communities and bring some much-needed business back into your shop? The business model for Cars Collision’s capture facilities provides one possible answer. Cars Collision is in the early stages of determining if this business model works and will be profitable enough to support the cost of additional real estate, technology and personnel. Before breaking ground on your own branch office, consider the following factors. The Right Solution
Virtually all shops experience a lull in business. This can be attributed to a number of causes including competition, economic conditions, poor public perception, etc. Before searching for a way to increase business, examine your shop and determine why it isn’t performing to full capacity. Opening a capture center, or something like it, can be an expensive proposition. Your business might be better served by more practical, less expensive options such as increased advertising or by adding more services. Consider consulting a marketing expert who knows the collision repar industry and can offer advice pertinent to your shop and particular financial situation.Location, Location, Location
If a capture center seems right for your business, you’ll need to open your center in an appropriate location. You’ll need to find an area with (1.) a significant driving population and (2.) a need for autobody services. You’ll also need to locate a building and area large enough to suit your needs. If you’re following Cars Collision’s model and offering towing and rental services, consider whether you’ll need space for tow trucks and rental cars. Cars Collision runs a towing company, so it has trucks on site. As for rental car services, Cars Collision made sure to move the facility next to a rental agency. If you’ll be contracting out for either of these services, make sure they’re conveniently located. You don’t want customers standing around for long periods of time waiting for a tow or rental.Resources
Besides the initial investment in space and materials, you’ll need to consider personnel costs. Plan on having at least two people at the capture center. At least one, of course, must be an estimator, and you’ll need someone else to assist with scheduling work and arranging the tow and rental services. If business is good, you may need to hire more estimators. Also, you’ll need to figure how much extra work your shop(s) can effectively handle. If you acquire too much extra business, cycle times could suffer and you could end up angering customers and losing the extra business.Flexibility
You could find yourself tweaking your business model in order to make it profitable. This could involve making changes such as sharing space with a towing or rental agency to save money or even restricting operating hours to keep personnel costs down. Whatever the case, you’ll need to keep a sharp eye on your investment. Be open to criticism and advice, and don’t hesitate to query customers on their experiences in the capture center. Since customer response will ultimately make or break the center, this input is invaluable.