Auto Paint P-Page

Financial Crisis in the Collision Repair Industry

2005-11-16T13:19:00.000-08:00

Dick Strom's article in Autobody New Southwest November 2005 edition (page 17), nails the erosion of profitability and failure of bodyshops in recent times. Speaking from first hand experience in which a large shop in Abilene recently filed bankruptcy, shops have got to get their act together and be on top of their "business" game not just marketing, DRP's or "doing a better job than that other shop". Strom lists 4 things he believes have contributed to the financial crisis most shops find themselves:

--Inaccurate information and detrimental alliances such as PPG's LYNX Network that actually erodes a shops profitability.

---Purchasing agreements that lock shops into a dead-end deal that result in no profit and poor performance and supplier support.

--Insurance practices that coerce business into illegal and fraudulent activities.

--Mandatory systems used to bill and manage that are biased and titled toward the buyer, leaving the seller with inaccurate information and inadequate compensation.

From this jobber's perspective, it makes no sense why an independantly owed small bodyshop business would ever rely on a global paint manufacturer to assist with profitiabilty when the number one driving force for these big monster companies is quarterly sales gains and not long term stability or growth in small increments. Between contracts and so-called "marketing" programs that the paint companies offer, I personally wouldn't be caught dead in the bodyshop business if I let a paint company silp that noose around my neck.

This business is like thousands of other business' in thousands of other industries . . . there's only one way to make money and that through hard work and bringing more revenue than you are spending on expenses. Why would anyone let a customer (or rather insurance company) dictate the selling price and a supplier dictate your expenses (i.e. paint contracts for up front money)---you the business owner have given complete control over to somebody that has absolutely no interest in you making any money.

Alsa's Kickin' the Pants off Previous Custom Paints

2004-08-27T12:08:00.000-07:00

Alsa Corporation is a paint additive company out of Califorina with some really cool stuff coming out. They already have established a name for themselves with a product called Mirra Chrome, in which you can achieve a chrome finish using their patented paint system instead of the conventional plating method (the conventional method yields a 95% reflective surface while Mirra Chrome paint yields a 90% reflective surface).

Some of the other really awesome custom painting solutions they offer is the standard candys concentrates (except twice as strong as House of Kolor), Crazer (marble and snake skin effects), Chameleon color changing paint (from high-end powders, to $249/gal. liquids, to a paint they call Xposures--a heat sensitive paint that changes with tempature fluxes), glow-in the dark powders (last up to 12hrs and is brighter than competitive products) really rich metallic base coats, extra pop pearls, a paint crystalizer, and a "soft-feeling" paint.

We expect our first shipment of Alsa products (mostly Mirra Chrome by request) the week of August 30th. So give us a call about any of these or the other brands of custom paints we carry . . . we love talking to folks about products that are just plain ol' fun like this stuff.

"Before the Accident"?

2004-08-27T06:59:00.000-07:00

Has anyone heard of a book called, Before the Accident, by Peter Bartlett? I have one copy published in 1996 and would love to get my hands on several copies (if it's been update--as we all know in the auto industry insurance and the process is ever changing). It's a great little resource aimed at the general driving public informing them the ethics and decisions they'll be faced with (and their rights) in the event of an automobile accident. This little gem covers everything from the accident scene to the repair process to insurance fraud.