When Kim Torres and Pamela Hartley took over ownership of ZJ’s Auto Body in April 2005 their primary goal for the Clovis, Calif., -based shop was to maintain the momentum of a shop that was performing well. Happily, the partners achieved that goal. “It was almost like we stepped in and it was seamless—business as usual,” notes Torres.
Hartley initially got involved in the collision repair business about 25 years ago when she married her ex-husband, who was already in the business. Hartley began working in the Visalia shop and says, “I worked my way through the whole shop, including working on cars.”
Eventually, Hartley took a few years off to raise a family, but she returned to work at the shop about 10 years ago. Although she and her husband had divorced by then, their relationship remained cordial. “I worked my way up until I was shop manager,” she says.
Hartley’s meeting with Torres occurred by chance about four years ago. “I wrecked my car and went into the shop,” says Torres, who was working as an accountant at the time. “Pam’s ex-husband asked what I did and I ended up working there. Pam and I really hit it off. We think alike about the way things are done–ethics and goals all were right there. We just clicked.”
Hartley and Torres had a good idea of what they were getting into when they took over ZJ’s because the Clovis business had been a beta site for a business management computer system that Hartley’s ex-husband had developed. In the course of getting the system up and running, Torres had spent a lot of time at ZJ’s and worked closely with ZJ’s previous owner. “Their reputation was impeccable and they had huge repeat business,” recalls Torres.
ZJ’s previous owner, who also had a towing business, had reached retirement age and, although his son planned to take over the towing business, the decision was made to sell the business. After giving the matter plenty of thought, the pair decided it was an opportunity they couldn’t pass up.
Since taking control, the partners have not only been able to keep all six direct repair programs with which ZJ’s was involved, they’ve also added two more. Hartley credits that accomplishment to the positive relations that both she and Torres had with all of the insurance companies involved. ZJ’s gets 85 percent of its business through DRP, so maintaining strong ties there was critical.
On the personnel side, there was some shuffling when the management change occurred. Several employees left to join the towing business and several of Torres and Hartley’s previous employees were brought in. In general, however, Torres says, “Employees have been very open and willing to allow us to step in and take over; it was nice to have them all so open minded.”
Employee retention was important because previous management had assembled a strong staff. “The previous owner had really hand-picked a good crew of employees,” notes Torres. “They were very good at picking the right employees for the job.”
Torres and Hartley hope to retain strong staff support by recognizing employees for their contributions. Each week, for example, the partners take a different employee out to lunch just to talk. “We want to go toward a team-oriented environment,” says Hartley. The partners are considering some type of profit sharing program. “We want employees to see the goal process,” she says. “We want to do more for the employees and make them all feel like owners.”
Because ZJ’s was running so well at the time of the purchase, Torres and Hartley have been cautious about making any major changes. Torres notes, however, that Hartley has helped improve shop efficiency. “Pam has a real knack for production, and she’s working with the technicians to give them the work that will make them the most productive.”
Although the shop’s equipment was quite modern, the partners have brought it even more up to date with the purchase of two new frame racks. “We’re trying to provide the best equipment so they can do the most efficient work,” notes Torres.
The computerized management system that Hartley’s ex-husband designed also has helped increase efficiency. “All of the technicians, including the paint shop, have computers,” Hartley notes. “Everyone uses them to monitor production. They can see where a car is and if it’s missing any parts. Painters can get a priority list of jobs to be painted in what order. I can sit in the office and prioritize what I want painted.”
Because ZJ’s gets so much of its business through DRP, the company doesn’t spend a lot on marketing—especially since the partners have not set ambitious growth targets. “We’re not looking to make a huge increase in the amount of sales,” notes Torres. “We’re looking to increase the bottom line with efficiency and productivity. We don’t want to be a huge shop.”
One of the biggest challenges for the partners may be balancing work and personal life. Both put in long hours, and since both live about an hour away, the long commute can sometimes be too much. At the back of the shop, Torres notes, “We built a little apartment we can go to if we need to.”
Satisfied customers at the heart of ZJ’s business strategy
Like many body shops that get a lot of business through insurance company direct repair programs, ZJ’s Auto Body of Clovis, Calif., receives customer satisfaction research from an outside firm. But ZJ’s owners Kim Torres and Pamela Hartley prefer not to rely solely on that information to gauge how customers feel about their business. While the outside firm contacts a percentage of customers at random, the in-house employee tasked with customer follow up contacts every customer—and reaches a surprisingly high 99 percent of them. “Someone on staff calls a week after each repair is completed,” explains Hartley. “We let them know we’ll be calling when they leave. If there are any issues, we take care of it for them.”
How does the company achieve such a high response rate? “We go for their home number and cell phone or work number or both,” Hartley notes.
The questions that the ZJ’s employee asks are similar to those asked by the outside research firm. Both callers ask customers to rate the company on a scale of 1 to 10 on questions such as “Was the vehicle ready when promised?”, “Did you receive adequate information during the repair process?” and the all-important “Would you recommend this company?”
“I take this information and we keep a running total and develop percentages to see how we’re doing,” notes Torres. This attention to detail undoubtedly has contributed to the company’s high customer satisfaction scores, which consistently average above 90 percent.
