Diversifying Your Repair Busines - BodyShop Business

Diversifying Your Repair Busines

If you’re managing your shop effectively, then maybe it’s time to consider broadening your scope from collision repair to cosmetic car care.

Diversification can be an excellent source of additional revenue in your collision repair business if it’s done for the proper reasons and with the proper management.

For nearly 25 years, I’ve been involved in the car care industry, and I’ve seen hundreds of different operators jump at the chance to diversify their primary businesses in hopes of boosting revenues.

These diversification schemes have taken many different forms. Car washes add gift shops and snack shops. Detailers offer accessories and other related services such as windshield chip repair, paintless dent repair and paint touch up.

For many, the experiment’s been a successful venture. But for many others, the diversification effort ended up generating little of the expected increase in revenues and created even more management headaches.

Because the operator was hoping to excuse the poor management of his primary business by adding another source of revenue to the business – in most cases, another source that required as much, or more, management. As a result, the same poor management that characterized the primary business was apparent in the diversification effort, too.

So, if you plan to diversify your collision repair business with additional services, be sure that you’re first managing your collision repair business properly. Remember, a marginally operated body shop will only result in a marginally run diversification effort.

Before You Diversify
If you’re convinced that you’re operating and managing your collision repair business properly, then you can consider diversification. But if you see some areas where you need to sharpen up your business, do that first.

Before deciding what to diversify into, look at the investment you already have in space, personnel and equipment that you can use. In short, utilize the resources at your disposal.

You also need to consider the added demand on your existing floor space, personnel and the dollars required to offer new services.

List the Possibilities
A good method to determine which car care services will be best for your business is to make a list of all the possibilities.

After making the list, evaluate them in terms of your geographic location. Many services are only viable in certain areas of the country. For example, rustproofing is in demand only in coastal areas or where salt is used in the winter to melt snow and ice.

After making your list, look around the area to see which aren’t readily available and ask your current customers what services they might need or require.

Hidden Benefits of Diversification
Many of the diversification ideas you come up with will not only provide an additional up-sell to your existing customers, but attract new customers.

For example, in many parts of the country, window tinting has become a staple in the auto service business and has its own draw. Windshield-chip repair has also surfaced as an in-demand service. Even paintless dent removal is becoming a service that many motorists are interested in.

In short, these individual draws will provide an excellent traffic flow to your collision repair business.

Some of you may be conservative and feel comfortable with your current business – so you want to resist change. But keep in mind that today’s motorists are seeking service and convenience in their purchases. They want one-stop shopping as much as possible.

As the marketplace evolves, so must your business. Maybe it’s time you stop limiting your options by saying you’re in the collision repair business. Broaden your options and consider yourself in the cosmetic car-care business instead.

Business diversification will be the name of the game in the coming years, and it can provide a lucrative payoff if approached properly. The trick is to evaluate yourself and your capabilities to handle it and then survey your facility and personnel capabilities – and build on that.

Writer Bud Abraham can be reached at [email protected] or (800) 284-0123.

You May Also Like

Cruise Postpones Release of Driverless Taxi Service

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019.

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019. Cruise CEO Dan Ammann said the company plans to dramatically increase the number of its autonomous test vehicles on the road in San Francisco, but will not be offering rides to regular people this year, according to an article from The Verge.

Cutting Edge Automotive Solutions Partners with Andretti Rallycross

Andretti Rallycross announced that Cutting Edge Automotive Solutions will serve as technical partner on Cabot Bigham’s No. 02 OINK Clothing Beetle for the remainder of the 2019 Americas Rallycross season, showcasing their SP Tools USA brand.

Ford, Volkswagen Expand Collaboration to Include Autonomous, Electric Vehicles

Ford Motor Company and Volkswagen AG announced they are expanding their global alliance to include electric vehicles – and will collaborate with Argo AI to introduce autonomous vehicle technology in the U.S. and Europe.

CCAR Updates Website with More OSHA Alliance Resources

CCAR (Coordinating Committee For Automotive Repair) has announced the addition of new Occupational Safety and Health Administration (OSHA) Alliance content on its main website, www.ccar-greenlink.org.

CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine Open in California

Owned by husband-and-wife team James and Mary Davis, CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine are a family business.

Other Posts

CIECA to Offer Webinar on What Businesses Need to Know to Implement CIECA Standards

CIECA will hold its next CIECAst webinar, “Implementing CIECA Standards: Implementation Guide and Appendix C – BMS, Code Lists and Shema Components,” on Tuesday, Dec. 11, 2018 at 11 a.m. CST.

CARSTAR Urges Customers to Stay Winter Ready

Cold weather can create some of the harshest driving conditions of the year. The months between October and February top the list for accidents, vehicle damage and injuries.

CIECA Adds Broadly as Corporate Member

The Collision Industry Electronic Commerce Association (CIECA) announced that Broadly has joined CIECA as a corporate member.

NABR Launches BillableGenie Online Searchable Database of Insurer-Paid Not-Included Procedures

National AutoBody Research (NABR) has announced the launch of its BillableGenie online service, an independent, centralized source of actual data on insurer paid not-included procedures and operations, labor rates, labor rate concessions and other manually entered estimate line items.