New management team assigns one team to each DRP, doubling sales volume
It’s amazing what a change in procedures will do. It can, for instance, double gross sales volume.
That’s what happened at South Motors Collision Center in Miami. For many years, sales at the 90,000-sq. ft. shop were a steady $400,000 to $500,000 per month. Then a new management team took over more than two years ago and began instituting basic changes. The primary change it made was to install the lateral support concept, which assigns one office/shop team to each DRP. The result? In January, South Motors achieved sales of $1 million, and sales have continued at that level ever since.
The management team consists of Blake Modesitt, body shop director; William Sandino, operations manager; and Lyndon Todd, production manager. Modesitt and Sandino had worked together for the past 12 years at a 37,000-sq. ft. shop in Pembrook Pines, Fla. Todd has more than 40 years of experience in the collision repair industry. Their goal was to maximize the shop’s potential. To do this, Modesitt says, “I take input from all the managers, then we make decisions as a team.”
The shop already benefited from a steady supply of business from the South Motors dealership, located just a half-mile away. The dealership sells BMW, Infiniti, Honda, Volkswagen and Suzuki, and represents approximately 45 percent of the shop’s business. About 20 percent of the jobs are heavy hits—$12,000 or more.
The new management team knew that the most important ingredient in the success of a collision repair shop is its relationship with customers and insurance companies. “You need to make both of them happy,” Modesitt says. “The best way to do that is to deliver fast, quality service.”
Decreasing cycle time was the first order of business. To accomplish this, the team not only installed the lateral support concept, it also changed paint suppliers. With the new paint supplier came a computerized paint mixing system.
“It eliminates human error,” Modesitt says. “The software tells the mixing machine exactly how much paint to mix for each job, so there are no overpours, no recalibrating.” The software also keeps track of all paint materials, including how much are used on each job. The shop’s jobber checks the paint inventory on the first of each month and restocks supplies.
In January, the shop’s five paint booths were in operation for up to 24 hours a day. Currently, the paint shop is running two shifts, with the first shift coming in at 7 a.m. The second shift arrives in the late afternoon and works until anywhere from midnight until 2 a.m. The second shift spends time prepping their vehicles, while the first shift is winding down their day. So for about two to four hours, both shifts are working at the same time.
All of this has contributed to the bottom line, including a 50 percent to 60 percent profit on paint materials.
Another profit maker is the huge 17-gal. solvent recycler. Installed in April, 2003, the $9,000 recycler will pay for itself in reusable solvent and lower waste disposal costs by November, according to Modesitt.
The new management team also has put major emphasis on training, something that was lacking previously. Last year, the shop spent $15,000 in I-CAR training for its 23 metal men, 11 painters and 13 service representatives.
“We anticipate by mid-summer that we’ll be a Gold Class shop,” Modesitt says. “Education in this industry is critical because of the constant changes we have to deal with. Technicians nowadays have to know how to work with fiberglass and aluminum. And now magnesium is being used in newer cars.”
The new procedures, equipment and training have all contributed to increased sales volume. Turnaround time (from the initial estimate to delivery) for 95 percent of the shop’s jobs is 30 days, a 100 percent improvement over the previous figure.
That has led to an improved relationship with customers, says Modesitt. “As a result, they are referring us to their friends and family. Also, the insurance people are happy because we’re doing things exactly the way they want them done.”
Indeed, the shop has depended solely on word-of-mouth to spread the word about the new standards. There is no advertising—not even a Web site.
Right now, about 65,000 sq. ft. of the shop is in use. A 30,000-sq. ft. addition, including 17 bays, will be completed in August or September. That’s a strong indication that, even though South Motors is already one of the biggest collision centers in south Florida, growth and change will probably be constants under the new management team. m
Snapshop
Name: South Motors Collision Center, Miami
Management team: Blake Modesitt, body shop director; William Sandino, operations manager; Lyndon Todd, production manager
Size: 90,000 sq. ft.
Employees: 66. 23 metal men, 11 painters, three mechanics, 13 team leaders and customer service representatives, four office staff, six in parts, four detail and quality control, two porters and janitors
Equipment: Five spray booths and a cut-in booth, 16 frame machines, 41 bays and a computerized paint mixing system
Production rate: 475 to 600 vehicles per month
Sales volume: $1 million per month