Diligent planning helps Connecticut shop succeed
Shortly after owner David Sirois purchased the business (then known as Zoel's Auto Body Inc.) from his father, Zoel, in 1979, he realized he didn't want to stay in the location the business had occupied since it was founded in 1963. "I started working toward growing the business and getting a new location," says Sirois.
It took over 10 years, but in 1994, the company moved to its current 15,000-sq.-ft. facility, also in Meriden. During the intervening years, the company more than doubled its revenues, which is no small accomplishment in a place like Meriden that has not grown at the same rate. Since the move, the company has continued its strong growth. "Our sales used to average $700,000 a year in the old shop," Sirois says. "Now we do around $2.5 million."There's no magic to how the company grew, which Sirois attributes to word of mouth and quality. But, having a specific goal undoubtedly helped set the pace.
Through careful planning, Sirois was able to minimize expansion risks and spread costs over a long period of time. For example, as business grew, the company added extra shifts, enabling it to build volume in its original space, helping ensure that there would be sufficient business to support the eventual move to the larger space. By the time the company made the move to its new facility, it was running night shifts and was always booked one month to six weeks ahead.Sirois also eased the transition by purchasing equipment for the new shop, including a state-of-the-art downdraft spray booth, before he built the building.
"The benefit was that it controlled our monthly costs and expenditures," he says. "The overhead was not as big as it would have been if we went out and borrowed money for everything. We had the equipment held at the factory so that if updates came, we would still have the newest version. If we had to pay a few thousand dollars more for an update, we would do it."
Like many second-generation shop owners, Sirois worked in his father's shop from the time he was a kid. An important turning point came one day when he was working under a car and his father kicked his foot. "Haven't I taught you anything?" Zoel asked. "You can only make so much money with your own two hands."The lesson apparently sank in. After getting a degree in accounting and spending time in the military, including a stint in Vietnam, Sirois came back to work for his father, ultimately taking on more of an oversight and planning role when he acquired the company. Today, he has 15 employees, including several key managers, working for him.
The most successful shops have low turnover rates, and Zoel's is no exception. "Most of the staff has been with me for years," says Sirois. "We take care of them and give them proper benefits. I believe they should be able to do a 40-hour workweek and have a good lifestyle, because they work hard." Employees also appreciate the fact that Zoel's pays for them to get training for Inter-Industry Conference On Auto Collision Repair (I-CAR) and National Institute for Automotive Service Excellence (ASE) certifications, Sirois says.
People like to work for Sirois because he is accepting of others' opinions, notes Sirois's wife Judy, who is vice president of the company and runs the office. "He's very receptive to what you think will make it work," she says.
Zoel's is on several direct repair programs (DRPs), which generate about 40 percent of its business. Sirois says he's "choosy" about which ones he'll get involved with. "I will only join a program if they will treat us fairly," he says. He avoids programs that might force the company to make a sub-quality repair. Several of the programs Zoel's is involved with do customer satisfaction measurements, which consistently run between 96 percent and 98 percent.Sirois also has a strong plan for addressing a different concern that shop owners tend to have about DRP programs — the narrow margins. When the shop moved to its current location, it also expanded into the mechanical repair business, which, Sirois says, provides better margins. At the time of the move, the company changed its name to Zoel's Body and Auto Center to reflect the business expansion. Zoel's currently gets about 25 percent of its revenue from mechanical repairs, and hopes to expand that. "Customers who get their cars repaired here are very happy," Sirois says.
One factor that helped Sirois in honing his management and planning skills was his participation in a 20 group of shop owners from around the country through a program sponsored by a key vendor. "I learned to think outside of the box, do my own thing and not follow the crowd," he says.
"We had a lot to give each other and it was a good support system," adds Judy, who also participated in the program. "It gives you a boost and assurance in what you're doing when you come back from a meeting."
Sirois's current goal is to reach a sales volume of over $3 million a year. To support that, he anticipates expanding his facility, which is set on nearly two acres with room to grow. Building on a lesson from the past, he's also considering adding another shift, if necessary.
