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Leader of the Band: Jim Keller
Shop owner Jim Keller talks about retiring from rock-n-roll, picking up the pieces after a failed merger and lauching a shop network.
By Cheryl McMullen
8/1/2004
Jim Keller is a man who likes to be involved.
Owner of Motorcar Collision in Milwaukee, Wis., and president of CRASH1 Collision Repair Network, Keller is part of the community in which he lives and part of the industry in which he works.
Aside from holding leadership positions with ASA, CIC and I-CAR- to name a few - he was named BodyShop Business' 2003 Executive of the Year. Outside of collision repair, he's served as a Cub Scout leader, as the treasurer at his church and as an organizer and participant in various Harley motorcycle rides for charity.
On weekends, you'll find him riding with his fiancée Corinne on his customized Harley Heritage Softail Classic or juggling his family's busy schedule to get them all out on their boat on Lake Michigan.
In the interview that follows, Keller reveals his need for peace of mind, patience and persistence.
BSB: How did you get started in the industry?
Keller: I started sweeping floors and wet-sanding cars. I was 14, and worked part time during school breaks and summers at a shop that my friend's father owned.
BSB: Did you always know this is what you wanted?
Keller: Actually, at first I really didn't enjoy the body shop environment. Back then, the places I worked at had poor ventilation - you know, a fan in the wall, and in general, poor conditions - very hot in summer, very cold in winter, dirty and damp. Breathing the paint shop fumes many times created an 'out-o'-body experience.'
As I graduated to better business environments, I enjoyed my work more. And when I began managing a dealer shop at age 21, I became more interested and even excited about a career in collision repair.
BSB: If not collision repair, what else?
Keller: My childhood dream was to become a rock-n-roll drummer in a national recording act.
BSB: Did you ever play the drums?
Keller: I started playing at age 10, inspired by the Beatles' Ringo on the Ed Sullivan Show in 1965. I played professionally until I was 25. A few of the musicians I had played in groups with went on to become major recording artists. But I wanted a family and 'turned in the sticks' at age 25. In 1981, I started my own collision repair business and began our family by having our first son.
BSB: So when you're stopped at a traffic light and listening to the radio, are you pounding out the beat on the steering wheel?
Keller: Oh, yeah, definitely. It's in my system and probably always will be.
BSB: Do you still play?
Keller: No, but I do have a guitar and a baby grand piano that I play around with. My son has a drum set. I've realized my mom had a lot more patience than I do. ... At least with a guitar or piano there's some melody. But with drums, it's just a lot of really loud noise.
BSB: So was the friend's father's shop the first job for you?
Keller: My first job was a paper route at age 12, earning about $15 dollars a week. I also played drums at weddings at age 14, earning $25 per night, accompanying an elderly accordion player/singer.
In those days, a good week was delivering papers for $12, playing a Saturday night wedding for $25 and working a few hours at the shop for another $10 - totaling almost $50, cash of course. Back then, that was incredible money.
BSB: What's your educational background?
Keller: I earned a degree in business from Cardinal Stritch University while I was operating two collision repair businesses and raising two young boys as a single father in the early '90s. I also received my AAM (AMI's Accredited Automotive Manager).
BSB: You were a manager at 21, and in '81, you started your own business. Four years later you opened a second location. Then, in '98, you merged with a consolidator - CARA Collision & Glass - and learned some tough lessons. Tell us about it.
Keller: When the consolidator approached me in 1997, I was looking to grow my two shops and open a third location. The consolidator offered me an opportunity to grow with them, as a shareholder/partner. At the time, this seemed like a viable way to accomplish my professional objectives, as well as gain equity in the new venture.
The consolidator had acquired six locations in Minneapolis and Milwaukee, and appeared adequately positioned, with capital, to achieve their growth targets. After nine months of contemplating the opportunity - I found walking my dog to be the most effective way - I decided to merge my business with the consolidator.
Approximately half the deal was cash and half was 'stock' in the new venture.
BSB: How'd it go early on?
Keller: Only a month after the merger, I saw signs that perhaps I made a mistake. Commitments relating to my responsibilities in the new organization that I had negotiated in my employment agreement didn't materialize and, needless to say, I was disappointed.
I also began to see signs that my ability to contribute to the major decision-making process would be limited. I contemplated leaving the organization, but chose to stay involved and to attempt to eventually work my way into a position to make a difference.
BSB: What went wrong?
Keller: After three years of uncontrolled growth to 27 locations, the business was literally losing millions and in a tailspin. The reasons for failing were obvious to a few of us. The stories I could tell if you had more pages in this article. I'd like to write a book about the whole experience.
With the writing on the wall, the company started selling off locations, and I tried to purchase the three Milwaukee locations, two of which I had previously owned. Other parties had interest in the locations as well, so the bidding war began. ... Unfortunately, the consolidator filed Chapter 7 bankruptcy before a deal could be made.
BSB: That must have been tough.
Keller: Yes. The employees were left without jobs and lost three weeks of pay, as well as their benefits.
BSB: What did you do?
Keller: I was able to negotiate with the bankruptcy trustee to take back possession of one of my former locations, where I'd owned the real estate. I owned the building, but they held the lease. ... I had to bid for the lease of my building with another consolidator.
The location had been shut down for a month and a half since the filing of bankruptcy. There were empty stalls, a poorly maintained building, grounds and equipment and no employees.
We made improvements to the building, re-named the business and began the process of marketing. Fortunately, the 20 years I'd been in business before the consolidator acquired my business lent credibility to our efforts, as well as key long-term employees who joined me in the new company.
BSB: How'd it end up?
Keller: I lost significant money (equity) in the bankruptcy - an incredible lesson to learn. But I have no regrets.
Before making my decision to merge with the consolidator, I consulted with my attorney, accountant, banker, even my employees, took plenty of time to weigh all the factors, insisted on an employment agreement, shareholder agreement and many other well-thought-out safeguards to protect myself financially.
In all of the well-written agreements I'd spent tens of thousands of dollars on, bankruptcy was the only event that my investment was not protected from. The bankruptcy could have been prevented, but the controlling shareholders decided to fold the cards. I'd proposed a plan a year before to the CEO to turn the company around, but the plan fell on deaf ears.
After the bankruptcy, I never looked back. After losing the sizeable investment I'd made, I could have driven myself crazy thinking about it. You need to forgive, forget and move on.
BSB: So you helped to launch CRASH1 Network, a Midwest group of independent collision repair businesses, with you serving as president. Why your own network?
Keller: We're all aware that the industry is changing. Consolidators, multi-location independents and dealer-owned collision repairers are gaining market share - not necessarily by delivering a superior service, but in many cases, by marketing themselves more effectively. Over the past decade, many other industries ... have formed networks to help their member businesses succeed.
The CRASH1 Network launched in late 2003 to create an environment where well-operated, independent collision repair business owners could increase the performance of their businesses and market themselves more effectively through the group dynamics and benefits of a well-designed network.
It would be difficult for collision repair businesses to individually develop programs such as call centers, standard operating procedures, CSI, HR and training, as well as the marketing horsepower that the network provides. But by pooling our resources, we can develop these programs cost effectively.
... CRASH1 also provides a 'single point of contact,' to their insurance partners to more efficiently and effectively manage claims. Members participate in a monthly review process of key performance indicators, measured against established benchmarks. This feedback is shared with our insurance partners.
CRASH1 locations also benefit from regular meetings with our insurance partners to determine the most effective and expeditious ways to process claims.
BSB: Any plans to go national?
Keller: Our focus is to remain in our Midwest region and to concentrate our efforts, attention and resources on building a prosperous regional network.
BSB: Let's put the "shop talk" on hold for a minute. Who are your biggest influences?
Keller: My mother. She is amazing, hard working, intelligent and has a charming personality. She's also forgiving, caring, understanding and a good Christian. She exemplifies 'unconditional love.'
BSB: You're the father of two sons, ages 21 and 16?
Keller: Yes. And I'm engaged to my best friend, Corinne. We've been together two years, and Corinne and I are blessed with four wonderful boys. Jim and John are my sons, and Corinne's sons are Matt and Mike.
BSB: That's a real crew. What's the best thing about being a father?
Keller: Being an influence and an important part of their lives, as we watch them grow and develop into fine young men.
BSB: And what's the toughest thing about being a dad?
Keller: Juggling everybody's busy schedules to enjoy quality time together.
BSB: OK, back to business. What's the most pressing issue facing the industry?
Keller: The economy and too much 'capacity' in the industry. Across the country, very few shops have their businesses running anywhere near capacity. Many technicians in those shops aren't producing the volume they're capable of. This creates a poor economic condition. The next few years will undoubtedly 'purge' some of the weaker operators out of the market.
BSB: You've served the industry in a lot of ways. Why is involvement important to you?
Keller: I've learned over the years that the more you give, the more you receive.
BSB: How can the industry get more people involved?
Keller: Quality recruiting. Then, when they find quality volunteers, they need to make sure they treat them well.
We need more people to step up and join ASA and other worthy trade associations. Get involved. Our industry has a small percentage of the businesses participating in its associations.
ASA needs the 'strength from numbers' to provide more effective education, training, member benefits and representation.
Professionals join associations. Our industry will be perceived as a more
An association with a good percentage of the businesses in its industry as members can accomplish great initiatives. The American Medical Association and the American Bar Association have very effective efforts because they have a strong member base driving their associations.
BSB: You've also been involved with technical colleges.
Keller: My good friend Bob Goff is the person who, early on when I first opened my business in 1981, came to my shop, introduced himself and invited me to a local association meeting. They made me feel welcome, and I became involved in the association, which led to being invited to serve on the vo-tech advisory committee. He got me out of the shop and involved in the industry....
My motivation to serve is this: As an employer of vo-tech graduates, the only way I can be assured that the program and the students are in touch with the 'real world' is to be involved. The schools need input from progressive shop owners.
BSB: You're also involved in your community.
Keller: Getting involved in your community means building relationships with people. ... Success - personally and professionally - weighs heavily on the quality of your relationships. ... I cherish the many relationships I've built over the years with some wonderful people.
BSB: What's the best advice you've ever received?
Keller: My grandfather, who was a very wise man, spoke to all of his grandchildren, who gathered around his bed as he lie in the hospital on his last day of life. He faintly said to us, 'Enjoy the many experiences life has to offer, but do everything in moderation. ... Too much of anything is no good.'
Writer Cheryl McMullen is managing editor of BodyShop Business.