In the world of automotive care, two different verticals often coexist: collision repair and general repair. While traditionally separate entities, a growing trend is emerging – the amalgamation of collision and general repair shops under one roof. This fusion presents a unique opportunity, offering customers comprehensive automotive solutions while providing business owners with diversified revenue streams and operational efficiencies.
At first glance, the collision and general repair sectors seem incompatible. Collision work demands precision in bodywork and painting, while general repair focuses on mechanical expertise. However, beneath the surface, both share foundational elements of problem-solving and great customer service. By uniting these disciplines, a comprehensive approach to automotive care emerges, empowering shops to address a wider range of customer needs.
One of the key advantages of integrating collision and general repair services lies in enhanced customer convenience. When faced with automotive issues, customers often prefer a one-stop solution over navigating multiple service providers. By offering both collision repair and general maintenance services, businesses can streamline the customer experience, eliminating the need for clients to shuttle between different locations for diverse automotive needs. This convenience factor fosters customer loyalty and strengthens the shop’s reputation in the community. If a customer had a great experience with your general repair, they’ll turn to you for auto body work also.
Integrating collision and general repair services optimizes resource utilization and operational efficiency. Instead of maintaining separate facilities, equipment, and inventory for each service segment, shops can consolidate resources under one roof. This consolidation minimizes overhead costs, reduces redundancies and maximizes the utilization of space and equipment. Additionally, shared administrative functions such as scheduling, billing and customer management become more streamlined, freeing up valuable time and resources for core business activities.
Earhart’s Collision & Automotive Service
From a business perspective, the fusion of collision and general repair services offers diversification benefits. The automotive industry is subject to seasonal fluctuations and economic downturns, impacting the demand for specific services. By diversifying their service portfolio, shops mitigate risk and insulate themselves from market volatility. For instance, while collision work may experience fluctuations based on accident rates and insurance claims and even weather, general repair services provide a steady stream of revenue, particularly from routine maintenance and repairs.
Moreover, the combination of collision and general repair shops creates cross-selling opportunities, allowing shops to upsell additional services to existing customers. For instance, a customer visiting for collision repair may discover the need for routine maintenance or mechanical repairs during the inspection process. By offering auto repair services under one roof, shops can capitalize on these cross-selling opportunities, increasing their average ticket size and overall revenue.
However, the integration of collision and general repair services presents unique challenges that require careful navigation. One of the primary challenges lies in maintaining distinct brand identities and customer perceptions. Collision repair and general maintenance evoke different associations in the minds of consumers, with collision work often associated with accidents and damage, while general maintenance conveys proactive care and preventative measures. To overcome this challenge, shops must effectively communicate their comprehensive service offerings and emphasize the benefits of integrated automotive care.
And as with any repair shop the owner must invest in ongoing training and development for both the collision and general repair sides of the business. Cross-training programs, manufacturer certifications, and continuous education initiatives are essential to keep pace with evolving automotive technologies and industry best practices.
Collision and general repair shops under one roof can be a profitable and successful businesses if the owner keeps in mind not just the similarities but also the differences. But one thing is the same – great customer service is paramount for a successful repair shop.
Jimmy Holman
Here’s how DRIVE client, Jimmy Holman of Earhart’s Collision & Automotive Service runs his successful business!
Your shop is both collision and general repair. What do you find is the toughest aspect of running a business with both verticals?
Technician shortage is still the main issue for the entire auto repair. Individually on the mechanical side communication from service writer to tech can be an issue. We have two separate buildings so getting this to be as non-verbal as possible is key. On the Collision side parts is our number 1 ongoing concern and the length to get them and/or back orders.
Do you find having both under one roof is a benefit for each area of the shop?
Having both businesses is definitely an advantage for the collision shop as we aren’t having to sublet much out these days. And we are continuing to grow the mechanical side is a bonus to the bottom line.
How do you split your time between both on a week-to-week basis?
I’m lucky to have a great Shop Manager, Tony Gott, with many years in both industries who acts as a back end estimator and also oversees the service work on a daily basis. Without him and our estimating and service writing team it would be much busier for me.
What are some aspects that are the same with the two areas in your shop. Like shop culture, customer service or marketing.
We work very hard here to make this a family atmosphere and stress family comes first. Customer relations are the key to every business but in these industries there has to be an added level of care to make the customers feel at ease and know they are going to get the vehicle taken care of correctly. We’re not perfect but do everything we can to make every situation that comes up better. We have been in business for over 25 years and are widely known in town as a one stop shop for both repair types. We are currently booking collision 4 months out and at least a week for mechanical. Marketing at this time hasn’t been a tough issue for us luckily.
Is your background in collision or general repair?
I have been in the industry since 1982 from trade school to working in shops until 1996 where I worked as an estimator for a major insurance company for 22 years prior to coming here. General repair on the management side is very new to me but have had the luxury to understand it from the years in the collision side.
What did you do?
When I was a technician in the collision side I did all facets of the industry from start to finish. The last few years were just paint and enjoy it still when I get the chance.
Anything you’d like to add to help other shop owners run a successful collision and general repair shop?
If I had a comment on helping others it would be on hiring. Look out of the box. One of my best hires was a front counter person from a hotel that we trained as an estimator and now as a service writer. Customer skills trump anything you can train. Also look into your local high school and college programs as we HAVE to grow our own techs as getting them is a harder and harder process these days. They will surprise you most of the time as they just want a chance. Hope this helps anyone that reads this.
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