I recently returned from the annual CARSTAR conference, and I must say the incredible amount of energy and enthusiasm poured out there is still lingering in my system. These days, there seems to plenty of doom-and-gloom talk about the future of the collision repair industry, but there was none to be found at this four-day pep rally. And I call it a "pep rally" because it was brimming with positive thoughts, creative ideas and motivational (and informative) speeches.
Conspicuously absent was any talk of repairers' growing frustration with insurers and any advice to franchisees on how to handle situations where they feel vehicles are being steered from their shops or perhaps feel they aren't getting paid for all of the procedures they perform during the repair process. Also, the term "partner" was frequently used in reference to insurers. You could argue it had something to do with the fact that 26 insurance executives were among the 500 or so attendees.
But I think the message of the conference would have been the same even if the insurance industry hadn't been so heavily represented. Why? Because I think CARSTAR has the philosophy that, right or wrong, we all play in the same sandbox and have to get along. And the insurance industry isn't going anywhere. Plus, the frachisor's executives made it clear at the conference that insurer relationships are a big part of their growth strategy for the future. CARSTAR knows that the number of shops is shrinking as insurers increasingly favor multiple-location operators, and it wants to put itself in a good position as the industry contracts and more work gets funneled to fewer shops.
To be fair, though, it's not as if CARSTAR's leadership has completely turned a blind eye to what repairers believe are underhanded tactics by insurers meant to squeeze their profits. Case in point is the "responsible push-back" letter CEO Dick Cross and COO Dan Bailey issued to the industry last year that said that "insurers are having their way with independent shop owners – offloading administrative costs, narrowing the definitions of what they will pay for and demanding higher levels of service." But the letter pointed out that these weren't "schemes" on behalf of
insurers to squeeze shops' profits but rather a reason to exponentially
improve the customer experience.
Indeed, improving customer service was the main message pounded through at the conference: extreme customer care. CARSTAR chose to focus on what it can control, which is making each and every store a better business operator. Senior Marketing Executive Bill Garroutte said that if each store could improve its "closing" percent just a little bit, or the number of customers who walk in the store and end up giving that store its business versus walking out, it could mean extra sales of $50,000 per store.
What will you focus on the rest of this year and next and into the future? Based on comments I've received from some repairers, it seems that some have just given up and resigned themselves to going out of business and they're dead-set on fighting till the end. Their last and final goal is to kick insurers in the butt one more time. I find that very discouraging. Wouldn't it be more productive to focus that energy on working on your business and turning a harsh light on the things that you do that hold you back? It's never too late. What's wrong is wrong, and repairers should fight for their right to a decent profit and expose unfair business practices. But to blame all of an industry's ails on one party is wrong and can lead to counterproductive activity.