A Royal Navy association website uses of the expression “crossing the bar” when posting notice of members who have recently died.
Sadly, in our Industry, another 41 bodyshops “crossed the bar” last October. This is sickening news because each collapse brings with it a trail of misery, ranging from job losses, unsecured creditors, disappointed customers and, of course, personal tragedy for the owners. Then as the ashes are raked over comes the harsh realisation that each failure represents the dreams of someone who was “prepared to have a go,” and who inevitably became embroiled in a set of circumstances that were allowed to get out of control.
Later the “automotive autopsy” will unearth two more harsh truths. One is that having a busy bodyshop is no guarantee of having a profitable one, and secondly that being a good painter or panel beater are not necessarily the right credentials for being a successful business manager. All too often history has shown that work provider packages can so easily be a “poison chalice” for the unwary, and that cash flow will always be the silent assassin lurking in the shadows seeking the moment to strike. And then, because running a business is always a lonely place, exactly who can the struggling owner turn to when in need of help or guidance? As a fact many “autopsies” may well show that the owner did not take time to talk to anyone and simply struggled on in the hope that “things would get better!
Recently I had the privilege of “chairing” a meeting made up from a mixture of independent bodyshop owners and a selection of experienced individuals supplying service and product to bodyshops. The message coming out of that meeting was clear; while a supply of work for the bodyshop is important, maximising margins by having the right staff, systems, controls and processes in place was essential for survival. One contributor, a specialist in vehicle assessing, told how management in one bodyshop failed to spot hundreds of pounds that had been missed from a selection of estimates. At the same time the owner remained blissfully unaware of the losses, while believing the staff to be capable. Never forget, the Estimator / VDA is arguably the most important member of staff, as they alone have the best control on securing the best margins. But, in fairness, do owners always know that the estimators are always getting it right? Remember, it is most unlikely that any Insurer has even gone back to a bodyshop and told them they had forgotten to claim for something on the estimate.
Also expressed, at the meeting, was the view that far too many bodyshops fell short in the” marketing department,” being only too eager to let the Fax machine take the strain. It expressed the view that finding alternative sources of work was paramount, and that related selling must become an essential discipline. Of course maximising efficiency and gross profit are necessary, but it is more important to know the breakeven point of the bodyshop and what is required to steer it into the profit gap. Never forget that while your accounts will show what your staff did, or did not do, the real trick is for management to make sure that they (the staff) are doing what is necessary to produce the right figures for you!
Finally, never lose sight of the fact that all great athlete use coaches to help them deliver top performances. Yet while the coaches are not better performers than the athletes, the athletes will always perform better with the right coaches. So, if in doubt, find the right person to talk to as it is a better alternative than “crossing the bar.”
