The Secret to Body Shop Profits: The Dealer Handbook
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1 The Secret to Body Shop Profits: The Dealer Handbook Your photo here Scott Rome President Rome Technologies, Inc. Pasadena, MD ROME #NADA100
2 2 The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker s company, product, or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service.
3 3
4 % INCREASED EFFICIENCY
5 5 8-12% INCREASED NET PROFIT
6 6
7 7 Net Profit Score Card Net Profit Percentage: 20% = A shop 15% = B shop 10% = C shop 5% = D shop
8 8
9 Staffing 9
10 10 Staffing Score Card (Total Cost) Percent of Total Monthly Sales: 9% = A+ shop 10% = A shop 11% = B shop 12% = C shop 13% or higher = D shop
11 11 Front Office Admin Team 4 admin jobs in all shops: CUSTOMER SERVICE WRITER PRODUCTION PARTS CUSTOMER SERVICE PARTS WRITER PRODUCTION
12 12 Front Office Score Card (Total Staff) Monthly Revenue Per Employee: $70,000 = A shop $60,000 = B shop $50,000 = C shop $40,000 or less = D shop
13 13 Customer Service Job Description Impact on Shop Performance 10% Schedule Drop-Offs Call Assignments Set Estimate Appts Update Calls Open tickets Cashier Paperless (Scanning) General Office Duties
14 14 Writer Job Description Impact on Shop Performance 25% Upsells Drop-Offs Blueprint (Precollision Recipe) Communicates with Customer Communicates with Insurance
15 15 Writer Performance Score Card Monthly Revenue Per Employee: $200,000 = A shop $150,000 = B shop $100,000 = C shop $60,000 90,000 = D shop
16 16 Parts Department Job Description Impact on Shop Performance Order Received Return Blueprint Dispatch Parts Post Invoice Mirror Match Core Charges 40%
17 17 Parts Department Performance Score Card Monthly Revenue Per Employee: $150,000 = A shop $200,000 = B shop $250,000 = C shop $300,000+ = D shop
18 18 Production Manager Job Description Impact on Shop Performance 25% Dispatching Facilitating Blueprinting Load Leveling the Shop Quality Assurance Payroll
19 19 Staffing - Old School Shop Floor Techs Production/Shop Mgr Front Office Writers Inefficiency and Bottlenecking
20 20 Staffing - New School Shop Floor Techs Admin Writers Teaming
21 21 Teaming Scalable Maximizes information flow (bandwidth) Optimizes quality, accuracy, and timeliness
22 22 Front Office Admin Team CUSTOMER SERVICE PARTS 50% WRITER/PRODUCTION
23 23 Staffing Keeping Results Consistent Train Monitor Measure/Benchmark Analyze/Consult Collaborate
24 Floor Plans 24
25 Floor Plans Shop Capacity (10,000 sqft shop)
26 26 Shop Capacity Score Card Monthly Revenue (10,000 sqft and 2 spray $250,000 per booth): $500,000 = A shop $400,000 = B shop $300,000 = C shop $200,000+ = D shop
27 Best Practices 27
28 28 Reduce Cycle Time
29 29
30 30 Cycle-Time DIRECT REPAIRS COLLISION CENTER
31 31 Staging Cycle-Time Authorize Insurance and Customer Analyze (Blueprint) Ticket is Closed Before We Begin Accumulate Resources Mission Critical Parts Tech Load Leveling
32 32 Old School Final Estimate Pre-Collision Condition Vehicles stall 75% - 90% 1 hour or more
33 33 New School Parts Person Body Man Painter Writer Mechanic Production Manager
34 Writer QC Checklist 34
35 35 Production Cycle-Time Mirror Matching Test Fit QC at Paint QC at Reassembly No Buffing (Clean Paint Booth) No Clutter on Shop Floor
36 36 Mirror Matching Upon receipt (with P.O.) At parts dispatch with tech signature Test Fit before paint A GREAT BODYSHOP HAS A GREAT PARTS DEPARTMENT
37 37 Quality Assurance Checking Body to Paint Paint to Body End of job QC
38 QC Checklist 38
39 39 Delivery Cycle-Time Paperwork Complete By Paint Call for Pickup At Reassembly Day Before Completion Morning of Pickup Schedule All Pickups Before 3 p.m.
40 40 Best Practices Blueprinting Mirror matching Daytime delivery Quality Assurance 3 calls for pickup
41 41 Body Technician Score Card Monthly Revenue Per Body Technician: $100,000 = A++ shop $85,000 = A+ shop $70,000 = A shop $60,000 = B shop $50,000 = C shop $40,000 or less = D shop
42 Technology 42
43 The Track To Run On 43
44 44 Traditional Body Shop Double entry: Payroll Parts Estimating/DMS R.O.
45 45 Traditional Body Shop Whiteboards Folders everywhere Spreadsheets Racks on the wall No centralized data
46 Islands of Activity 46
47 Technology 47
48 48 Components of a Successful Body Shop Shop Floor Detail/Buff Paint Shop Parts Department Prep Production Management Express Lane Customer Service Teardown Bays Estimating Mechanical/ Alignment Frame Body Admin
49 Technology 49
50 50
51 51 Technology Measure to Manage
52 Technology 52
53 Forecasting with Technology 53
54 54 Measure to Manage Parts cycle-time tracking Production cycle on any given day Projected delivery date Number of days in shop Type of collision Projected profitability continued on next slide
55 55 Measure to Manage Load on shop by Tech Writer Department Customer love-call cycle Defines priorities Cars to fix Parts to buy Customers to call
56 56 Technology User-friendly Single point of entry Multiple Platforms (Tablet, Desktop, Cloud) Powerful and global Wireless Paperless
57 57 Technology Removes Roadblocks Balancing tickets Double entry of parts Payroll Duplicate RO s Paper Confusion
58 58 Technology Creates Transparency Accountability No more questions about: Parts Production Flagged Hours Priorities
59 59 Technology Improves Operations Maximize efficiency Speed Accuracy (Quality) Data Distribution How?
60 Estimator 60
61 61 Estimator Apps At vehicle: Write estimate Check in customers Prior damage Customer signatures Contact information PDF copies Upsell Advances to blueprinting
62 Customer Check In 62
63 Customer Check In 63
64 Customer Check In 64
65 Customer Check In Drop Off 65
66 Production 66
67 67 Production Apps Defines Inventory Provides the tools to: Prioritize work Define tasks Set time limits Assign labor Notes Photographs Trigger customer service
68 68 Inventory Filtered by: Staging Production Writer Technician
69 Admin Status 69
70 Labor 70
71 Assign Labor 71
72 Parts 72
73 Notes 73
74 Predefined Notes 74
75 Dynamic Notes 75
76 Priority 76
77 Completion Time 77
78 Completion Date/Customer Service 78
79 Photos 79
80 Technician 80
81 81 Technician Apps Sets: Daily priorities Timetables for completion Provides Status: Parts Flagged hours Repair notes Labor worksheet
82 Technician 82
83 Tech Parts 83
84 Tech Labor 84
85 Tech Notes 85
86 Tech Photos 86
87 Paperless 87
88 Paperless 88
89 89 REVIEW -Staffing -Best Practices -Technology
90 % INCREASED EFFICIENCY
91 % INCREASED NET PROFIT
92 Questions 92
93 The Secret to Body Shop Profits: The Dealer Handbook Your photo #NADA100 Scott Rome President Rome Technologies, Inc. Pasadena, MD ROME Please visit the NADA Pavilion in the Expo Hall for information on accessing electronic versions of this presentation and the accompanying handout materials, and to order the workshop video recording.
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