National programs bring clout with referrals

Jan. 1, 2020
It's well-recognized that word-of-mouth can make or break a body shop and that quality work is often rewarded with repeat business and referrals. But not everyone realizes all the different ways a strong customer service record can add value. One com
It's well-recognized that word-of-mouth can make or break a body shop and that quality work is often rewarded with repeat business and referrals. But not everyone realizes all the different ways a strong customer service record can add value. One company that has taken its strong track record to the next level is Artcraft Collision Repair Center, a 25-year-old body shop based in Smyrna, Ga.

Artcraft has aligned itself with two nationwide programs — an automobile club and an auto parts distributor — that have increased referral business. Programs such as these place certain demands on shops, but once shops are accepted they can benefit from strong marketing clout of nationally recognized brands. The two programs Artcraft works with generate about 25 percent of the shop's business.

Artcraft Collision Owner Jimmy Monger says his shop benefits from the trust these programs garner with consumers. "Some (consumers) will throw their keys to us and say, 'We know you're not the cheapest, but we know you'll do a good job and be fair with me,'" says Monger.

To join the distributor's program, Artcraft technicians had to be ASE-certified and the shop had to have specific equipment, such as welders, frame racks and a downdraft booth, among other requirements. Techs also must continue their training on a yearly basis by attending seminars put on by the distributor.

Because all shops participating in the distributor's program must meet the same standards, Monger can offer a lifetime warranty that is honored at any collision repair center affiliated with the program nationwide. This is particularly appealing to customers who move or travel frequently, he claims.

The automobile club also maintains strict requirements for its referral program. "First they ran a credit history on all employees who handle money and a criminal history," he notes. "They also called our last 100 customers and did an on-site evaluation where they crawled under everything."

Above and beyond the costs that Artcraft entails in meeting program requirements, Monger does not consider the costs to be too high. The parts distributor charges a few hundred dollars a year and the automobile club has a "nominal" yearly fee, he contends.

Participation in referral programs, in combination with traditional referrals and word-of-mouth, have enabled Artcraft to operate without participating in any insurance company direct repair programs (DRPs). Noting that DRPs bring in business, but often at lower margins, Monger quips, "My philosophy has been that I'd rather be hungry than hungry and tired."

Unlike some body shop owners, Monger did not begin his career as a technician. Earlier in his career, he had jobs in automotive manufacturing and at a nuclear plant. But when he was laid off in 1979, he began repairing cars in his grandmother's garage as a way of earning some money. "I didn't know a thing about the business," Monger admits. "If someone brought a car to me, I would go to three different body shops to ask how to fix it, get three different responses and I'd go back and do whichever way I felt was the best."

Within a couple of years, Monger had enough business to rent his own building and hire a couple of employees. By 1990, he had grown enough to purchase an acre of land with a 5,000-sq.-ft. building. Since then he has expanded twice and now has three buildings totaling 16,000 sq. ft.

Most of Artcraft Collision's employees have been with the company at least five years. "I treat them the way I would want to be treated," Monger says. "I give them good training opportunities and [the parts distributor] reimburses us for the training. They also get good benefits — dental, health, vacation and a 401K."

As for the future, Monger says his goal is "to stay in business by charging a fair price and getting paid for what we do. We are here to serve our community and customers without the interference of dealing with difficult insurance companies. Our goal is to satisfy our customers with quality and safe repairs and to exceed their repair expectations and maintain a profit margin. After all, insurance companies cannot sell insurance if no quality shops are left to repair the vehicles. Collision shops have to make a profit, just like the insurance industry."

About the Author

Joan Engebretson

Engebretson is a former editor-in-chief of America's Network. She has covered the communications industry since 1993. In 2002, she won a national gold award from the American Society of Business Publication Editors for her columns. Previously, Engebretson was the editor of Telecom Investor, a supplement toAmerica's Network.

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