-
June 2015$595
THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE
PROVIDERS/NEW JERSEY (www.AASPNJ.org)AND THE AUTOMOTIVE RECYCLERS
ASSOCIATION OF NEW JERSEY (www.ARANJ.org)
www.grecopublishing.com
TM
Molding theIndustrys Future
at SkillsUSA
FAIR, REASONABLE& PROFITABLE:
Exploring the Variable Rate System
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 1
-
2 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 2
-
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 3
-
4 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 4
-
New Jersey Automotive | June 2015 | 5
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 5
-
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 6
-
New Jersey Automotive | June 2015 | 7
P.O. Box 734 Neptune, NJ 07753
EXECUTIVE DI REC TORCharles Bryant732-922-8909 /
[email protected]
2013 - 2015 OFFICERSPRESIDENTJeff McDowell, Leslies Auto
Body732-738-1948 / [email protected]
COLLISION CHAIRMANDave Laganella, Peters Body and
Fender201-337-1200 / [email protected]
MECHANICAL CHAIRMANKeith Krehel, Krehel Automotive Repair,
Inc.973-546-2828 / [email protected]
TREASURERTom Elder, Compact Kars, Inc.609-259-6373 /
[email protected]
SECRETARYThomas Greco, Thomas Greco Publishing, Inc.
973-667-6922 / [email protected]
BOARDJerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 /
[email protected]
Sam Mikhail, Prestige Auto Body908-789-2020 /
[email protected]
Ted Rainer, Ocean Bay Auto Body732-899-7900 /
[email protected]
Anthony Sauta, East Coast Auto Body732-869-9999 /
[email protected]
Randy Scoras, Holmdel Auto Body732-946-8388 /
[email protected]
Anthony Trama, Bloomfield Auto Body973-748-2608 /
[email protected]
BOARD ALLIEDJoe Amato, The Amato Agency732-530-6740 /
[email protected]
Mike Kaufmann, Advantage Dealer Services973-332-7014 /
[email protected]
PAST PRESIDENT ATTENDINGTom Elder, Compact Kars609-259-6373 /
[email protected]
PUBLISHERThomas Greco ([email protected])DIRECTOR OF
SALESAlicia Figurelli ([email protected])EDITORJoel
Gausten ([email protected])MANAGING EDITORJacquelyn Bauman
([email protected])ART DIRECTORLea Velocci
([email protected])OFFICE MANAGERDonna Greco
([email protected])CONTRIBUTING EDITORSCharles Bryant Tom
Greco Jeff McDowellMitch Portnoi Dave Laganella Ron Ananian
Published by: Thomas Greco Publishing, Inc.244 Chestnut Street,
Suite 202, Nutley, NJ07110Corporate: (973) 667-6922 / FAX: (973)
235-1963
www.grecopublishing.com
VOLUME 45, NUMBER 6 | June 2015
8 OUT OF BODY (AND MECHANICAL) EXPERIENCES10 PRESIDENTS
MESSAGE
14 EXECUTIVE DIRECTORS MESSAGE58 NJA ADVERTISERS INDEX
NEW JERSEY AUTOMOTIVE is published monthly and is sent to
AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per
year. NEW JERSEYAUTOMOTIVE is published by Thomas Greco Publishing
Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of
NEW JERSEY AUTOMOTIVEare copyright 2015 by Thomas Greco Publishing
Inc. and may not be reproduced in any manner, either in whole or in
part, without written permission from the publisher and/or editor.
Articles in this publication do not necessarily reflect the
opinions of Thomas Greco Publishing Inc. Cover and Images courtesy
of www.istockphoto.com.
The Alliance of Automotive Service Providers/New Jersey
Joe Amato, Sr.Ron AnanianJim Bowers
Charles BryantDon ChardGuy CitroEd Day
Dave Demarest
Tom ElderBob Everett
Thomas GrecoRich Johnson Wes KearneyNick KostakisJim KowalakJoe
Lubrano
Michael LovulloSam MikhailRon MucklowGeorge PetraskRuss
Robson
Jerry RussomanoGeorge Threlfall
Cynthia TursiLee VetlandPaul VigilantRich WeberBrian VesleyGlenn
VillacariStan Wilson
HALL OF FAME
CONTENTS
COVER STORY
25
VENDOR SPOTLIGHT20 Introducing FASTLIGN: A New Era of Customer
Service
LEGAL PERSPECTIVE by Mitch Portnoi32 Insurance Law: A General
Outline
FEATURES38 Molding the Industrys Future at SkillsUSA Coverage
and Photos by Jacquelyn Bauman
42 The Real Deal on Auto Education: A Conversation with I-CAR
CEO John Van Alstyne - Part 1 by Joel Gausten
48 Fair, Reasonable & Profitable: Exploring the Variable
Rate System by Joel Gausten
55 AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY Wharton
Insurance Briefs
11th Annual Lou Scoras Memorial Golf Outing HighlightsPhotos by
Jacquelyn Bauman and Frank Ingram11th Annual Lou Scoras Memorial
Golf Outing HighlightsPhotos by Jacquelyn Bauman and Frank
Ingram
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 7
-
8 | New Jersey Automotive | June 2015
OUT OF BODY (AND MECHANICAL) EXPERIENCES
As Im sitting down to write this, I happen to have TheLate Show
with David Letterman on in the background. ItsLettermans last week
and he is having just about everymajor celebrity of the last few
decades walk out and saygoodbye. Right now, Tom Hanks is doing a
pretty funny bitabout drones. In the last few weeks, I have seen
Letterman every-where. Magazines, newspapers, online...all
celebratingDaves more than 30 years on the air. All of them
praisingand paying tribute really reminds me of something: Howmuch
I miss Johnny Carson. I NEVER liked David Letterman. As a late
night TV aficionado, I resented him from the start for replacing
oneof my favorites, Tom Snyder. In all fairness, Letterman didgive
Snyder his own show a few years later, but that wasntenough for me.
The first impression is always important,
and I never got over my initial dislike. However, I have to say
that once Letterman doesleave, late night TV will have made the
final transition to thenew breed of hosts, the ones I refer to as
the ME hosts.Jimmy Fallon, Jimmy Kimmel, Conan OBrien, all of
theirshows are basically one-hour advertisements for theiregos.
None of them can interview a lick, and 75 percent ofthe show is
made up of skits and parodies that they cantwait to see online the
next morning. It didnt used to be that way. Carson was always
abouthis guests and how he played off them. The humor was inthe
conversation, not the scripts written by a bunch of writers in an
office somewhere. To his credit, Letterman tried to carry that
spirit on. Butas he got older, he became crankier and more and
morepolitical. Carson always did political humor, but he aimed
by THOMAS GRECO,PUBLISHER
Goodnight, Dave
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 8
-
New Jersey Automotive | June 2015 | 9
at both parties. Letterman, unfortu-nately like the rest of the
country,seemed to take a side, and that getsstale quickly. There
are only so manySarah Palin jokes to go around. There are two
things that Letter-man was outstanding at. The first isthat he
always had a lot of great bandsyou never got to see anywhere else
onTV. The second was his monologuethe first day back after 9/11.
Love himor hate him, you had to be moved byhis emotional, inspiring
and patrioticspeech about that horrific event. Forthat alone, he
should be lauded. But hes still no Carson. This month, my daughter
is graduating college and my son isgraduating high school. Im going
toneed a month to contemplate that before I can write about it. See
younext month
NJA
Busy Middlesex Countybody shop looking for experienced estimator
withgood customer skills. Must be self-motivated with
accountability to join ourteam of professionals anduphold our
commitment to customers and growth. Excellent opportunity for an
Experienced AutoBody Estimator/Appraiserin a fast-paced environment
and well-established business.
SKILLS/REQUIREMENTS:Three to five years experience
estimating
Knowledge of CCC1 & Mitchell
Submit to criminal background check
Must be able to build team relationships with insurance
representatives & technicians
Must have experience working with DRPs
Must be self-motivated, self-confident, detail-oriented and
display excellent communication skills
Benefits available after 90 days
Apply via rsum at [email protected]
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 9
-
All it takes is a look through thepages of this months New
Jersey Automotive to see the incredibly strongnetwork of support
that exists in ourlocal industry. I am writing this
message on the heels of AASP/NJs re-cent Lou Scoras Memorial
Golf Outing,where dozens of shops and numerousvendors and industry
professionalsbraved the chilly weather to gather,
enjoy each others company and honorone of our own. From the
participationof all our players to the incredibly gen-erous support
of our event and prizesponsors, I would like to personallythank
everyone who came out to makethis years Golf Outing a
fantasticevent. Your involvement made it funand enjoyable; best of
all, it helpedrecognize a future industry memberwho will be gifted
a special scholar-ship in Lous name (funded in part byproceeds from
this event). Speaking of the next generation ofcollision repairers,
AASP/NJ was oneof many industry-leading entities whowere supporters
of the 2015 NJ Skills-USA State Championships. We areproud to be
one of many sponsors ofthis great event, which helps furtherthe
repairers of tomorrow and ulti-mately helps ensure a stable,
qualifiedworkforce to continue to flow into our industry. Turn to
page 25 and page 38 andjoin me in acknowledging the manygreat
businesses whose support helpsfuel events like SkillsUSA, our Golf
Outing and so many others. In an industry where there are so many
ele-ments working against us every day,these companies are
wholeheartedlyshowing that they are on our side theside of
furthering the automotive repairindustry now and into the future.
Whenconsidering your next purchase ofproducts or services, turn to
them first,because they have proven time andtime again that their
commitment tothis workforce is just as strong as ours.Again, on
behalf of AASP/NJ, thanksvery much to those who support our efforts
year-round. It is greatly appreciated.
10 | New Jersey Automotive | June 2015
PRESIDENTS MESSAGE
SUPPORT THOSE WHO SUPPORT YOUby JEFF MCDOWELL
NJA
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 10
-
New Jersey Automotive | June 2015 | 11
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 11
-
12 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 12
-
New Jersey Automotive | June 2015 | 13
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 13
-
To those who sometimes say,Things will never change, I say
thinkagain! When people do bad thingsand repeatedly get away with
it, people tend to think that change willnever come. In our
industry, insur-ance companies bad behavior is atypical example of
this. When I saybad behavior, I am referring to certaininsurers
that constantly refuse to paya fair and reasonable amount to
eitherrepair a damaged vehicle or recoverthe value of the vehicle
if it is dam-aged beyond repair. I have overseena Hot Line for
AASP/NJ members formany years, and the calls that we gettoday are
quite often the same or almost identical to many of the callsfrom
years ago (which resulted in theHot Line being created in the
firstplace.) For this reason, its no wonderwhy many people are of
the opinionthat things will never change. By running the Hot Line
for manyyears, I get to see trends that occur inthe industry, and
Im able to docu-ment both the good and bad thingsthat happen. So
many of the badthings that plague our industry havebeen dealt with,
and solutions havebeen discovered as the result of doc-umentation.
Even with finding solu-tions to many problems as they arise,it
seems that the problems in recentyears are coming faster than the
solu-tions. Much of this can be attributedto the change in the
technology beingintroduced in modern vehicles. Obvi-ously, the
ultra-modern technologyhas resulted in new equipment and
training investments. Things that colli-sion shops could get
away with in thepast are just that a thing of the past. Based on a
first-hand look at theindustry from running the Hot Lineand hearing
the cries of the membersof the industry for years, I can tell
youthat we are really close to what I havereferred to in the past
as an explo-sion that is about to happen. I havewritten articles
comparing the con-flicts between the insurance industryand the
automotive repair industry toan unstoppable object approachingan
unmovable object. When an un-stoppable object comes in contactwith
an unmovable object, somethingenormous has to happen. In my
opin-ion, that best describes exactly wherethe collision industry
is at today. Thequestion is, what is going to happenwhen the
unstoppable object comesin direct contact with the unmovableobject?
We are about to find out! Because the insurance industryhas
artificially suppressed the LaborRates for so long, it will take
doublingor tripling to get them to where theyneed to be in order to
fairly compen-sate the collision industry to repair thecomplicated
vehicles on the roadstoday. When we start saying we needdouble or
triple the current rates,everyone seems that think the colli-sion
industry is just being greedy. In reality, because of insurer
interfer-ence, that is just what it will take toget them up to
where they need tobe. Because of the changes in thetechnology being
introduced,
requiring the major investment intraining and equipment
(combinedwith the fact that certain shortcutscan no longer be
taken), insurershave to be willing to compensate thecollision shops
accordingly, but theydont. The combination of thesethings is what I
feel equates to the example of the unstoppable objectabout to
collide with the unmovableobject. This train has been coming
downthe track for a long time, and somepeople may say that certain
peoplelike me have been crying wolf for along time and that nothing
will everhappen. They think that once again,things will just get
worked out. In thepast, things have always beenworked out. For
years, insurance ap-praisers have allowed for hours thatdont exist
in order to compensate forthe low Labor Rates. Insurers have
in-structed their appraisers to throw acouple extra hours on a job
when acollision shop is complaining aboutthings like low Labor
Rates or unfaircompensation for things like the paintand materials
required when repairingdamaged vehicles. When shops complain to
State agencies like theNJ Department of Banking and Insurance, the
response is that theyare not in violation of the regulationsas long
as the insurer is willing to negotiate. Well, we are at the
pointthat things can no longer be workedout because the differences
are justtoo far apart. Because things can nolonger be worked out
and no StateAgency is willing to step up and forceinsurers to
address the issue, shopshave had no choice but to turn to thecourts
for resolution. No matter where you look today,you can find
articles about anotherlawsuit that has been filed to addressthe
exact issues referenced in thismessage. The difference now is
that
14 | New Jersey Automotive | June 2015
Relief is Reallyon the Way!
EXECUTIVE DIRECTORS MESSAGE
by CHARLES BRYANT
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 14
-
New Jersey Automotive | June 2015 | 15
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 15
-
the lawsuits that are being filed aremajor ones that are going
to make adifference. They are lawsuits that aregetting major
attention by news organizations like the recent AndersonCooper 360
episode that aired inFebruary of this year. After that show
hit, other news stations across thecountry aired similar
stories. Over theyears, insurers have been able toavoid the
attention that a lawsuitbrings by twisting the facts and mak-ing it
look like it is just the result of oneor two shops trying to get
more money
than they deserve. This time, it is notjust a shop here or
there; its shopsfrom all over the country that havebeen driven into
a corner and felt thatthey had no other choice. It was eitherturn
to the courts or shut down theirbusiness. Although it has been a
long timein the making, the time has finallycome for the shops
involved in someof the suits to get discovery and depose those
involved. Although Icannot go into detail on exactly whathas come
out of the discovery anddepositions, I can tell everyone in
theindustry that help is on the way. Themembers of the industry who
have decided to stand up and fight throughthe court system should
be supportedand honored, because it is extremelystressful to go
through this process.However, they are definitely going tomake a
difference like nothing has inthe past. In short, relief is finally
on theway, and we will be watching and reporting the progress as
things continue. Stay tuned.
EXECUTIVE DIRECTORS MESSAGE
16 | New Jersey Automotive | June 2015
NJA
and
Micro-Mix Paintand
Materials Calculatorin Bergen, Passaic, Essex andHudson Counties
in New Jersey.
CALLOffice: (973) 696-3176or Cell: (201) 452-0987
Mike LovulloDistributor for
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 16
-
New Jersey Automotive | June 2015 | 17
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 17
-
18 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 18
-
New Jersey Automotive | June 2015 | 19
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 19
-
20 | New Jersey Automotive | June 2015
Imagine a tool that can verify a cars wheel alignment or
recognize a low tire, which has an effect on a vehicles tracking as
the customer drives into your service lane. Moments after the
customer gets out of the car, your service writer has an
illustrated report showing the rolling angle of each wheel and
canexplain to the customer why it may be a good idea to put the car
on the rack for inspection, performalignment adjustments or simply
inflate the tires to the proper pressure. Even if the customer
declinesthe offer, that report can be saved and mentioned in the
next service reminder. The tool that gives you this poten-tial
profit center is called FASTLIGN.Although it serves a similar
purpose aswidely used wheel alignment checkingtools (point of
sale), its function andutility are completely different.
Noequipment is attached to the vehicle. Instead, it uses a set of
lasers and photosensors to detect the orientation of eachtire as
the car is driven past the sensors.After scanning the VIN barcode,
thecomputer retrieves prior customerrecords or alignment
specifications fromits database, compares the specs to theactual
readings and generates a customreport that can be stored,
displayedand/or printed. The device is completelyself-contained and
requires no technicalexpertise to use. Once the car is drivenpast
the sensors, the only interactionwith the FASTLIGN tool is through
theWiFi barcode scanner entry point. The technology was developed
byBanaLogic Corporation, a Canadian-based company with offices in
North Carolina and California and with a customer base of more than
2,000 service and repair facilities. According to Jeffrey Choy,
automo-tive product specialist with Express Lane (a US distributor
of the FASTLIGN product), roughly 50percent of all vehicles
arriving in a dealership service bay have some kind of problem that
affectswheel alignment or tracking. Were evaluating cars in ways
they have never been checked before, he says. David Zane Sr.,
service director at Holman Toyota in Mount Laurel, began
investigatingFASTLIGN when it became obvious that his previous
equipment (used in his facility for two and ahalf years) simply
wasnt cutting it anymore. I watched what my lot attendant staff
went through on a daily basis, he recalls. I watched how much work
it really was, and I realized that we probably werent getting our
potential out of the machine. As a dealer that serves an average of
130 vehicles a day, Holman Toyota is always on thelookout for
equipment that can handle their high demands while reducing time
and physical exertion among staff. Zane introduced the FASTLIGN to
his facility in late April and immediatelyexperienced vast
improvements in his operation. There was no question that FASTLIGNs
non-intrusive, three-second scan was the directionwe needed to go,
he says. We do as many as 100 vehicle write-ups before lunch.
Statistically, weare proportionately evaluating the same amount of
vehicles using FASTLIGN as the head-hangingapparatus, only now we
are not holding up customers vehicles in the service lane; the
flow, pro-cessing time and image of the vehicle on the report is
like night and day. Lines are not formingoutside our lane as they
would with the manual wheel clamps. By getting the tracking report
in the customers hands before they reach the counter, we have a
greater rate of success getting thecustomer to agree to additional
services. Its easier to sell when they are looking at their
reportthan trying to sell the job over the phone or after they have
left the service counter. In addition to an amazing ROI, FASTLIGN
has had a tremendous impact on employeemorale. Theyre elated, Zane
says. We have the check-in process almost down to 20 seconds;
itsthat fast. People can use this machine with about 10 minutes of
instruction. It doesnt take physicalstrength like other machines
that are out there. This allows you to hire from a wider
employeepool. My lot attendants are enjoying using the machine;
theyre having fun with it. Our previousmachine was a burden to
them. Thats the difference.
VENDOR SPOTLIGHT
FASTLIGN offers a fast and cost-effectivealternative to clamp-on
wheel alignmentevaluation techniques. Never miss an
opportunity.
:
FASTLIGN offers vehicle image andvehicle data at your fingertips
before thecustomer exits the vehicle.
Detailed report in as little as 15 seconds
Jeffrey Choy (right) with David Zane ofHolman Toyota, Mt.
Laurel, NJ
Introducing
A New Era ofCustomer Service
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 20
-
New Jersey Automotive | June 2015 | 21
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 21
-
22 | New Jersey Automotive | June 2015
Not surprisingly, Choy is pleased to have provided a tool of
such tremendous value. Theres nothing like being in the business
ofhelping other people become successful, he says.Dave is a perfect
example, and hes not the onlyone. Many service managers are
consideringtread-checking devices as their point of sale
appara-tus,he continues. Sure, anything in the servicelane will
help sell, but the ratio for those who re-quire tire replacement is
far from those who need aminor adjustment to their steering and
suspension,toe and go! The initial investment for tread check-ers
may be less, but the net profit [ROI] will likelybe much less.
Besides, how long is the process forinstalling a set of tires as
opposed to a quick twist-ing of the tie rods? FASTLIGN will always
be thebest bang for the buck. With so many positive attributes
working in itsfavor, FASTLIGN is sure to introduce a new era
ofcustomer service and retention. As Choy says, Everyone wins. The
customerwins because he or she knows about the true condi-tion of
the vehicle, and the service writers win be-cause their tickets get
higher. Of course, dealerprincipals are happy because this could
add tens ofthousands of dollars in net profit per month. For more
information on FASTLIGN, contactJeffrey Choy at (571) 216-6100.
NJA
VENDOR SPOTLIGHT
Reports showing FASTLIGN statistics, including pass/fail rate,
reports generated,specific models and other analyses, are available
by email or directly off the serverin real time.
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 22
-
New Jersey Automotive | June 2015 | 23New Jersey Automotive |
June 2015 | 23
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 23
-
24 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 24
-
New Jersey Automotive | June 2015 | 25
May 18, 2015, Colonia Country ClubPhotos by Jacquelyn Bauman and
Frank Ingram
11th Annual Lou ScorasMemorial Golf Outing
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 25
-
AASP/NJ 11TH ANNUALLOU SCORAS MEMORIAL
GOLF OUTING
Platinum Sponsors: The Amato Agency,All American Auto Salvage
and HertzRent-A-Car, Enterprise Rent-A-Car
Gold Sponsor: Thomas Greco Publishing /New Jersey Automotive
Silver Sponsor: Auto Body Distributing Co.
Bronze Sponsors: Cosmos Ocean CountyAuto Wreckers and TNT Auto
Parts
AASP/NJ Thanks This Years Sponsors:
Refreshment Carts: Cosmos Ocean County Auto Wreckers
Hole in One Sponsor: Maxon Hyundai-Mazda
Hole Sponsors: Parkway Auto Body, East Coast Auto Body, Auto
Body Distributing Co., Meadowbrook Insurance Services, NJGCA,Mike
Kaufmann, Bradley Car Care, Dover Dodge-Chrysler-Jeep, Continental
Auto Parts, Lakewood Toyota, All American Auto Salvage, Mountain
View Auto Body, First Class Auto Glass, L&M Auto Center, Hertz
Rent-A-Car, Flemington Car & Truck, Axalta Coating Systems, FMS
Managers, USI North America Paint Booths, Albert Kemperle,Walters
Auto Body, Thomas Greco Publishing/New Jersey Automotive, Lees Auto
Body, Meadowlands ExpositionCenter, Maxon Hyundai-Mazda, Central
Paint/Central Motor Parts, Holmes & McDowell, Storm Logix Web
Design, Anthonys Auto Body, Mitch Portnoi (Post, Polak, Goodsell,
MacNeill & Strauchler, P.A.), Fred Beans Subaru.
Prize Sponsors: NUCAR, Cosmos Ocean County Auto Wreckers, Fred
Beans, Hertz Rent-A-Car, Enterprise Rent-A-Car, The AmatoAgency,
Maxon Hyundai-Mazda, Axalta Coating Systems, Meadowbrook Insurance
Services, Auto Body DistributingCo., Freehold Nissan, Utica
National Insurance Company, PaintEx.
Special thanks to Hertz for running check-in for this years
guests and providing them withgift bags, Cosmos and NUCAR for their
incredibly generous donations of flat-screen TVs as prizes, Joe
Amato and Randy Scoras for their efforts during this years dinner
and LeeVetland and the Colonia Country Club for their management of
the best Golf Outing yet!
AASP/NJ acknowledges and appreciates ALL of our extremely
generous sponsors and supporters, and encourages the industry to
remember these names when purchasing products and services.
26 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:06 PM Page 26
-
CONGRATULATIONS TOTHIS YEARS WINNERS!First Place: Dave Brennan,
Ken Pagel, Brian Horton, Mark Ierubino
Second Place: Frank Dominici, Robin Cuneo, AJ Bassani,
RichMarkovich
Third Place: Joe Amato Sr., John Griffin, Pat DeCeasare, John
Agamie
Longest Drive: Male: Dave Brennan; Female: Robin Cuneo
Closest to the Pin: Frank Dominici
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 27
-
28 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 28
-
New Jersey Automotive | June 2015 | 29
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 29
-
Audi dealers strive to make you an Audi Parts Professionals are
Your Subject Matter Experts on Collision Parts, Replacement
Components and Mechanical Items.
Many Audi dealers offer technical service support hotline access
that can reduce your repair times and help you meet an on-time
promised delivery.
Flemington Audi213 Route 202/31Flemington, NJ 08822Toll Free:
800.216.5124Fax: 908.782.9397email:
[email protected]
Classic Audi655 North Macquesten Pky.Mount Vernon, NY
10552914.663.2870Fax: 914.663.2878email:
[email protected]
DCH Millburn Audi2211 Millburn AveMaplewood, NJ 07040Toll Free:
800.553.9250Direct: 973.762.0262Fax:
973.821.2040www.millburnaudi.com
Audi Turnersville3400 Route 42Turnersville , NJ
08012856.649.7560Fax: 856.649.7565www.turnersvilleautomall.com
Paul Miller Audi179 Route 46 EastParsippany, NJ 07054Toll Free:
800.35.MILLERParts Direct: 973.575.7793Fax:
973.575.5911www.paulmiller.com
Schneider + Nelson Audi270 Highway 36West Long Branch, NJ
07764732.389.1743Fax: 732.935.7585email:
[email protected]
Palisades Audi127 Route 59Nyack, NY 10960Toll Free:
888-349-6075Parts Line: 845-353-4870Parts Fax:
[email protected]
Town Motors Audi400 South Dean StreetEnglewood, NJ
07631201.227.6506/6536Fax: 201.541.0314www.townmotors.com
Helping you do business is our business. Order Audi Genuine
Parts from these select dealers.
30 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 30
-
an Audi Genuine Parts fan R
r
Installing Genuine Audi Collision parts contributes towards
improved cycle time that makes both your customer and their
insurance company happier.
Regardless of the age of your customers Audi, Audi dealers have
access to over 200,000 part numbers. No other supplier comes
close.
Bell Audi782 Route 1, Edison, NJ 08817732.396.9360Fax:
732.396.9090www.bellaudi.com
Jack Daniels Audi of Upper Saddle River243 Route 17Upper Saddle
River, NJ 07458Phone: 201.252.1500Fax: 201.254.1552email:
[email protected]
Audi Meadowlands4700 Westside Ave.North Bergen, NJ 07047Toll
Free: 888.416.2834Fax: 201.223.7842www.audimeadowlands.com
Cherry Hill Audi2261 Marlton Pike WestCherry Hill, NJ
08002Wholesale: 856.665.5660Fax: 856.665.4645email:
[email protected]
Audi Bridgewater701 Route 202-206 NBridgewater, NJ 08807Toll
Free: 888-685-5712Parts Direct: 908-800-9000Fax: 908-595-0237email:
[email protected]
Audi Manhattan800 11th AvenueNew York, NY
10019212.515.8200Wholesale Direct:
212.515.8275www.audimanhattan.com
Audi Brooklyn211 63rd StreetBrooklyn, NY 11220Phone:
718-492-6400Fax:
[email protected]
Jack Daniels Audi1601 Mc Bride AvenueFairlawn, NJ
07410201-398-1209Fax: 201-475-8666www.jackdanielsmotors.com
New Jersey Automotive | June 2015 | 31
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 31
-
32 | New Jersey Automotive | June 2015
We have all received insurance policies in the mail (someare now
even being sent online) and either filed themin the circular file
or (hopefully) filed them away forfuture reference. When it comes
time to reference those insurancecontracts, it is invariably
because a loss or claim has occurred andwe want to know what is
covered, what the deductibles are andwho is responsible for this
loss. It is at this time that we need tolook closely at the
contract/policy and interpret the language con-tained therein.
There are some very general and basic rules forinterpreting this
language, and it is the purpose of this article to setforth the
basic rules for understanding and construing insurancecontracts.
Firstly, the rules that are applicable for ordinary contractshave
been held applicable to insurance contracts as well. Thecourts will
not remake contracts for the parties; they can only en-force
contracts that the parties themselves have made. The aim ofjudicial
construction of insurance contracts is to determine andthen
effectuate the intent of the parties. Contract language is to
begiven its ordinary meaning, unless some special meaning is
clearlyshown. In seeking the intention of the parties, the
instrument as awhole is considered; whenever possible, effect is
given to all of itsparts and a construction that gives a reasonable
meaning to all its
provisions is preferred to one which leaves it or some of its
partsuseless or inexplicable. There have been some rules that are
considered applicable tothe general construction of insurance
contracts, which have beenmodified over the years to reflect the
overriding public policy ofprotecting the individual policyholder.
This is due to the fact thatthe general policyholder is considered
unschooled in the intrica-cies of insurance. The courts have
recognized that complex insur-ance contracts are actually contracts
of adhesion that are preparedby the insurance company and not
subject to negotiation as to theterms and provisions; they are
particularly unintelligible to thegeneral consumer were he or she
to even attempt to read and un-derstand the terms therein. The
courts have stressed that the aver-age purchaser of insurance is
entitled to the protections necessaryto fulfill his or her
reasonable expectations, and that the languagecontained in these
contracts is to be plain, clear and prominent tothe layperson. An
outgrowth of the above-stated principle is the judiciallydeveloped
rule that insurance contracts are contracts of adhesionand are to
be strictly construed against the insurer. That is, if theterms
used in an insurance policy are imperfect or ambiguous (ca-pable of
being understood in two different ways), it is the fault of
LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.
Insurance Law: A General Outline
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 32
-
New Jersey Automotive | June 2015 | 33
the insurance company and the construction of the contract will
bestrongly against them. In other words, ambiguity requires
resolu-tion in favor of the insureds. Generally speaking, a genuine
ambi-guity is said to arise where the phrasing of the policy is
soconfusing that the average policyholder cannot make out
theboundaries of coverage. Additionally, where insurance policy
lan-guage is subject to two possible interpretations, courts will
invari-ably accept the interpretation under which coverage is found
andwill reject the interpretation that leaves the injured person
withoutprotection. These rules of construction apply generally to
the uninformedaverage private person and may be more strictly
construed for thesupposed more sophisticated business consumer.
However, therules that relate to ambiguous contracts still apply
against thewriter (in this case, the insurance company) and lend a
favorableinterpretation to the business consumer. What does all
this mean to the supposedly sophisticated busi-ness owner? Take
some time to review your policies of insurancewith your
broker/agent and know what risks you are protectedagainst and
(perhaps more importantly) know the risks for whichyou are NOT
protected. Get an insurance agent that you trust andwho is familiar
with your business and the losses/claims that takeplace within that
business. Speak to a lawyer whenever your insurance company denies
a claim for which you thought therewas coverage. Please call me at
(973) 228-9900 with any questionsrelated to this article.
NJA
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 33
-
34 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 34
-
New Jersey Automotive | June 2015 | 35
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 35
-
36 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 36
-
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 37
-
FEATURE Coverage and photos by Jacquelyn Bauman
On May 2, New Jersey collision repair students went
head-to-head, putting theirskills to the test in the annual NJ
SkillsUSA competition held this year at the SomersetCounty
Vocational and Technical High School in Bridgewater. Twelve
students in totalparticipated in different automotive repair tasks
including welding, bumper repair, adhe-sives and estimating. Local
industry leaders judged individual tasks, giving each studenta
particular score based on their final result, technique, time
management and finishedproduct, among other things. Students
competed for prizes donated by Karyn Breidt andAuto Body
Distributing, Anthony Trama and Bloomfield Auto Body, Charity
Ritter andBridgewater Collision, Tom Smetanka and Central Paint,
Wayne Wagner and WaltersAuto Body and Jerry McNee and Ultimate
Collision Repair. Prizes ranged from a fulltool set and bench to a
welding helmet and supplies such as gloves and jumpsuit. The
winners were: First place Nicolas Bianco (Hunterdon Co-Central),
Second place Giannie Cintron (Somerset County Vocational and
Technical HighSchool), Third place Matt Nelson (Morris County
School of Technology). Bianco will now have the opportunity to
compete at the SkillsUSA National competition in Louisville, KY
from June 22-26. Program Director Peter Fryzel of I-CAR would like
to thank this years judges Steve Baur, Charity Ritter, Howard
Freedman, Todd Witten, Chuy Barrera, EdwardWinkins and Edgar
Chaves, Jr. as well as all of the sponsors for their continued
supportof this event. In addition those who donated prizes, this
years sponsors were AASP/NJ,A&J Body Fender, Albert Kemperle,
The Chrysler Corporation, Dayton Toyota Center,DCH Collision
Center, I-CAR, Flemington Chrysler, Jackson Auto Body, Main
AutoBody, Reliable Auto Collision Inc., Spies Hecker, 3M and
Urethane Supply Co.
Molding theINDUSTRYSFUTURE at
NJA
38 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 38
-
New Jersey Automotive | June 2015 | 39
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 39
-
40 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 40
-
New Jersey Automotive | June 2015 | 41
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 41
-
42 | New Jersey Automotive | June 2015
At the most recent CIC, you notedthat I-CARs research revealed
that66 percent of todays industry doesnot engage in regular
training. Whathas I-CARs research identified assome of the major
root causes ofsuch a distressing number?
We kind of backed into that 66 per-cent number; the 66 percent
numbercomes from an assessment of the percentof the industry thats
number one en-gaged with I-CAR training. At the end of2014, we had
6,049 shops that were eitherGold Class or on the Road to Gold.
GoldClass is our consumer-facing recognitionfor a shop thats
achieved the minimal lev-els of training that the industry
essentiallyspecified through our Professional Devel-opment Program.
Road to Gold is like ouron-ramp to Gold Class. These are shopsthat
have declared that they want toachieve Gold Class, so they are
activelyworking towards that. We track them andwe call them Road to
Golders. The expec-tation is that Road to Golders becomeGold Class
shops in about a year. We have3,200 Gold Class shops and 2,800 Road
toGold shops. And those numbers are up;last year, we had an
increase of almostfour percent on Gold Class, and Road toGolders
were up 25 percent. So we have a
lot of people who are getting engaged inI-CAR. If you do the
math on that 6,000 andyou look at our industry of maybe
35,000shops, thats 17 percent of the industrythats seriously
engaged with I-CAR. I-CARs not the only training organizationthats
out there. Certain OEMs have train-ing. BMW has good training,
Toyota hasgood training and Audi has some training.Folks are able
to get some training in otherways. We also have our program we
callthe Training Alliance; people can getcredit in the I-CAR world
for training theytake elsewhere. Some of those OEMs arepart of
that, but [so are] people like 3Mthat offer training on, say,
adhesive bond-ing, or maybe Chief on how to use theirframe
equipment. That counts towards theI-CAR world. If we look at the
structure of the in-dustry, what drives training? Well,
first,theres an inspiration to train for shops, butthen theres also
the requirement to train.In the I-CAR world, there are some
insur-ers and some OEMs that require I-CARtraining. Thats a good
thing as far as Imconcerned, because that helps motivatepeople to
get training, but there are alsosome shops that are inspired to
train be-cause they know its the right thing to do,and that it
helps them perform complete
The 2015 aluminum-intensive Ford F-150 has hit theroads. Are you
prepared to handle one if it comesinto your shop? Start with I-CARs
2015 Ford F-150Structural Repair Training, a live classroom
courseworth six credit hours that highlights the uniqueprocess
associated with aluminum repair of the FordF-150.
On Thursday, July 9, Somerset County VocationalHigh School in
Bridgewater will host a 3pm install-ment of this course. To
register, visit i-car.com or call(800) 422-7872. For questions,
contact Peter Fryzel [email protected].
THE REAL DEAL ON AUTO EDUCATION: A Conversation with I-CAR CEO
John Van Alstyne Part 1
FEATURE by Joel Gausten
StayingAhead withTRAINING
If you think this industry isdoing a good job of
pursuingadequate training, think again. At the April Collision
Industry Conference (CIC) inAtlanta, I-CAR President andCEO John
Van Alstyne offereda stunning revelation: Despitethe best efforts
of industry advocates, only 34 percent oftodays industry engages
inany form of industry training.With I-CAR currently celebrat-ing
the 25th anniversary ofGold Class and more than 35years in the
industry, New Jersey Automotive reachedout to Van Alstyne for
alengthy two-part chat on whysuch a low number exists and why the
need for educa-tion in this industry is moredesperate than
ever.
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 42
-
New Jersey Automotive | June 2015 | 43
and safe repairs and also impacts theirbusiness performance. But
if we look atthe population of OEMs and insurers thathave training
requirements, that popula-tion of shops probably numbers in
therange of about 12,000 total, which is a lit-tle bit bigger than
the population we have.We have a total of about 9,000 shops
thathave done some training with us in 2014,and we would estimate
that about 12,000shops fall into the repairer network pro-grams
that have some sort of a training re-quirement attached to them it
may not beGold Class, but some level of training re-quired. Our
assertion is that if weve only got9,000 shops engaged with I-CAR,
andweve only got 6,000 that are Gold Classor on the Road to Gold
and were awarethat theres programs out there through in-surers or
OEMs or [elsewhere] that affectabout 12,000 shops, then whats the
bal-ance of the industry doing? What are theother 23,000 shops
doing? Theyre notdoing anything with I-CAR; we are theprincipal
provider of training to our indus-try. Theyre probably not training
withBMW or Audi or Toyota, because theydbe in those repair
networks, so where arethey getting training? My slide at CIC said
66 percent arelikely not training. Im not sure I can vali-date that
on all 23,000 shops, but we knowtheyre not with us and were pretty
suretheyre not with Toyota and BMW, etc. Sowhy arent those 23,000
shops trainingtoday? Well, Id say there are probably acouple of
reasons. Number one, Im notsure that this industry necessarily has
a
deep culture affinity towards learning andeducation and taking
training. Its not beena requirement across the industry to do
so,and theres an expense associated with it.You have to pay money
to go to a trainingclass, and youve got to pay for your employee to
go, so theres an economiccost to training as well. So there are
probably a number of reasons that mightcontribute to that.
What are the primary reasons why a shop should invest the time
andresources to become Gold Class?
Number one, if a shops not training,how does that shop deal with
the vehiclesthat are coming into the shop and thatwill be coming
into the shop? The numberone component is the fact that every
yearin the United States, somewhere between75 and 100 new vehicles
are launched thathave some sort of change going on to thatvehicle
which is of significance to the collision repair industry. It could
be a newvehicle debuting, or it could be a signifi-cant re-design
of a vehicle or have to dowith significant re-engineering of
stuffthats going on underneath the body pan-els...How do you keep
abreast of the bestpractices on how to repair those vehicles
ifyoure not training? These vehicles arechanging, and in some case
quite signifi-cantly. The number one issue that the indus-try has
is the plethora of new vehiclescoming into the shops every year.
Issuenumber two that the industry has is thecomplexity of vehicle
technology thats
being introduced to the marketplace. Amajor driver of that is
the CAFE legisla-tion that was put into place a few yearsback.
There are interim requirements forfleets in North America to
achieve a cer-tain MPG requirement. By 2016, vehiclesneed to be at
a significantly higher CAFEperformance than where they needed to
bein prior years. But thats just an interim re-quirement; in 2025,
vehicles need to be at54.5 miles per gallon. If you look at
wherethe automotive industry has been over thelast five years or
so, it has been improvingfuel economy at an average rate of about.8
miles per gallon. To get to the 2016 re-quirements and this was
starting in 2014 the rate of the change of improvementhas to go
from .8 to 1.2; thats a 50-per-cent increase in average fuel
economy per-formance across the OEM fleets. To get to54.5 in 2015,
that rate of change had tochange effectively in 2014 to a rate of
1.6miles per gallon or double the rate of im-provement over the
prior five years. Sohow are the automotive companies gettingthere?
Theyre getting there through acombination of various different
tactics;some of those are powertrains, more effi-cient engines,
more efficient transmis-sions, turbochargers, maybe applyingdiesels
into their fleets. Theyre looking atplug-in electric hybrids and
hybridizingconventional powertrains, stop/start technologies...The
powertrains a big pieceof it, but mass reduction, rolling
resist-ance, aerodynamics are also big pieces ofit...Were seeing
shifts in materials; theuse of high-strength steels is becomingmore
commonplace today. Although
As CEO and president of I-CAR, John Van Alstyne is leading I-CAR
into the future as the automotive collision repair industrys
standard for technical-focused education, knowledge and solutions
that directly contribute to complete, safe and quality repairs for
the ultimate benefit ofthe consumer. Prior to I-CAR, Van Alstyne
spent 20 years in the OEM andvehicle technology sector of the
automotive industry. Most recently, hewas with Fisher Coachworks, a
Detroit-based electric vehicle start-up.Earlier, he was with
Ricardo, a top global powertrain and vehicle engineering consulting
firm, and Freudenberg-NOK, a global Tier 1 OEM parts
manufacturer.
continued on page 51
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 43
-
44 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 44
-
New Jersey Automotive | June 2015 | 45
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 45
-
46 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 46
-
New Jersey Automotive | June 2015 | 47
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 47
-
48 | New Jersey Automotive | June 2015
In an industry often hindered by the demands of insurers,there
has never been a greater need to break away from thelearned
helplessness that plagues so many repairers and explorenew ways of
developing what should be the Labor Rate for colli-sion repairs.
For a growing number of shops across America, thisnew path is being
developed by the Variable Rate System fromNational AutoBody
Research (NABR). Created by Richard and Sam Valenzuela, the
Variable RateSystem is a collection of online tools that help auto
body shopscharge the right Labor Rates for their shop based on
market,training, certifications and equipment, and helps them raise
theirrates to a profitable and sustainable level. It is a
subscription-based product that seeks to solve two problems the
single ratesystem, and stagnant and depressed Labor Rates simply by
tak-ing advantage of accepted industry operating procedures andlaws
that already exist: Prevailing Competitive Pricing (PCP),Most
Favored Nation (MFN) and ShortPay Negotiation and Liti-gation.
According to company literature, Auto body shops canstart using it
today without fear of losing their DRPs. No argu-ment with your
DRPs is involved because even as market condi-tions change, the
continued proper use of the Variable RateSystem will ultimately
raise the recognized PCP rates which allinsurance providers pay.
When we began, there was a clear and desperate need forLabor Rates
to go up, explains Richard. While people in the in-dustry did not
necessarily have the research to support that belief,they were
feeling it in their bank accounts, their inability to giveemployees
raises and their inability to buy necessary equipmentto handle the
new technology, metals and designs of modern ve-hicles. The
Variable Rate System (VRS), comprised of five (andtwo upcoming)
online tools, includes online access to severalbusiness tools
designed to improve your understanding of com-petitive prices in
your market, locate shops like yours in yourarea, provide efficient
quotes and calculate the right Labor Ratefor your individual shop
in order to hit your profit goals. Sub-scribing shops get 24/7
anytime access to these VRS tools:
SURVEY THE MARKET The most advanced Labor Rate search tool
available. With just
a few clicks, this function within the VRS quickly provides
youwith Prevailing Market Rate Ranges (PMRRs) of competitiveLabor
Rates in your area (not just one rate for all shops), basedon
several factors such as a shops location, training, certifica-tions
and investment in equipment and technology.
Documents PCP rate range to support claiming and collectingfair
and reasonable rates from insurance providers
SHOP LOCATOR Based on the search criteria you select such as
location,
training, certifications, equipment the Shop Locator shows alist
of the company names, addresses and phone numbers of allshops that
have entered their Labor Rates in the VRS. This givesVRS
subscribers competitive intelligence not available to othersin the
marketplace.
LABOR RATE & PROFIT CALCULATOR Whats the right Labor Rate
for your shop to charge in order
to achieve a 15-percent operating profit? If your paint costs
goup five percent, what new Labor Rate or paint & materials
ratedo you need to maintain your profit levels? The VRS Labor
Rate& Profit Calculator helps answer these and several other
impor-tant questions, fast. NABR has done all of the math and built
aneasy-to-use online tool, so you can focus on running the bestshop
possible. No more guessing at Labor Rates, no more working through
other confusing and complicated Labor Ratecalculators and no need
to pay your accountant to build morespreadsheets. Just plug in the
basic financial and operationsnumbers we ask, and let the
calculator do the rest. The result:learn the right Labor Rates to
charge for your individual shop,based on your own companys cost of
doing business and grossprofit and operating profit goals.
COST OF DOING BUSINESS CALCULATORCurrently provided as an
offline service by NABR for VRS
subscribers, the Cost of Doing Business Calculator helps
shopsbetter understand their cost structure from a monthly,
weekly,daily and even hourly view. With the flexibility to use your
finan-cial statements from the last three, six, nine or 12 months,
this
COVER STORY by Joel Gausten
FAIR, REASONABLE &PROFITABLE:Exploring the Variable Rate
System
There isnt a single shop owner reading this publicationwho
doesnt want a more realistic Labor Rate.
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 48
-
New Jersey Automotive | June 2015 | 49
calculator is used in conjunction with the Labor Rate
calcu-lator to help you compute the right Labor Rates for you.
QUOTE TOOLThis easy-to-use online tool gives shop estimators
a
lightning-fast way to access pricing packages and providequotes.
The ultimate in pricing flexibility, the Quote Tool enables your
shop to have up to three tiers of pricing (for example, Hi, Medium,
Lo) for multiple account types such asretail, wholesale,
commercial, fleet and insurers, as well asspecial pricing packages
for specialty or high-end vehicles.
The Quote Tool is used daily to virtually eliminate
pricingconfusion when preparing estimates, while increasing
effi-ciency and profit per transaction.
PROCEDURES & PRACTICES Have you ever heard youre the only
one who charges
for that procedure? The new VRS Procedures & PracticesSurvey
will dispel that myth once and for all. Shops acrossthe country
have told us of the many procedures or opera-tions they commonly
perform without getting paid. Yet othershops charge for that same
operation, put it on their esti-mate and get paid by the insurer.
Why does one shop getpaid but not the other? There are several
reasons, but thebiggest one NABR hears is that shops were not aware
thatother shops were charging and collecting for certain
proce-dures. Well, now you will be!
Take the VRS Procedures Survey today, and see behind thecurtain
about what is really happening with other shops, andwhich insurers
pay for what procedures. Your participationin the survey is vital
to helping create a level playing field sothat every shop is paid
for the work they do.
MARKET METRICS (COMING SOON) How does your shops revenue per bay
compare to other
shops in your market? What about total overhead per em-ployee?
Or profit per square foot? Coming soon, the VRSMarket Metrics tool
will help you answer these key performance questions, enabling you
to benchmark yourshop against others in your market and across the
country,along several key performance indicators in the areas
ofsales performance, cost performance, profit
performance,productivity metrics and general business
comparisons.
Considering the truly unique nature of the Variable RateSystem,
it comes as little surprise that use of the product hasspread
throughout the industry. At the end of 2013, the sys-tem had rate
information for 300 shops across the country;today, more than
20,000 different rates have been collectedby 1,745 shops in 44
states. Sam credits the Variable RateSystems ongoing success to
industry word of mouth plusgrowing news media interest and support.
We have many shops that are strong believers in thesystem, and they
are telling others about it and spreading the word, he says. When
people really see and really understand what the Variable Rate
System is, they get really
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 49
-
50 | New Jersey Automotive | June 2015
excited because they see the vision that it is indeed the
solutionfor the stagnant Labor Rate problem. Perhaps the greatest
element of the Variable Rate System isthat it offers real-time
Labor Rate data based on the quality ofshops within a specified
market. We believe that you need to separate shops from one
an-other only in an effort to reward the shops that are
reinvestinginto their businesses by getting their people trained
and acquiringmore certifications and quality equipment, notes
Richard. Wehave adjusted the search functionality to separate the
more highlycertified shops from less-certified shops. Those shops
that do thatcan then call for a greater Labor Rate. We want those
facilities re-warded for their efforts in trying to be
state-of-the-art shops, be-cause we are concerned about the care
and the safety of theconsumer. Not all shops are the same, Sam
adds. Paying one price toall shops is kind of equivalent to giving
one grade to all our stu-dents in a class. Students perform
differently, and they deservedifferent grades; shops perform
differently and deserve differentprices. Sam believes that the
Variable Rate Systems offers value toinsurance carriers as well.
Most insurers really dont have a source of market-baseddata to know
what the real price is, he observes. This is oneway where they can
have a better, more accurate view of whatprices really are in the
market. In addition to their subscription-based offerings,
NationalAutoBody Research is currently conducting extensive and
free national surveys on shops Labor Rates and procedures. Therate
surveys ask shops to supply two types of rates: the posteddoor rate
and what Richard calls the fair, reasonable and suffi-ciently
profitable rate (or FRP). The FRP rates are those that shops say
they would chargewithout insurers being involved in their business,
offers Sam.The FRP rates are higher, but theyre not extremely high.
Youdont see shops saying they would charge $200 an hour if
insur-ers were not in their business. The extremes of the FRP rates
national, statewide or region-ally dont exceed where the rate would
have been if the LaborRates had stayed in line with cost of living
and inflation increasesover the last decade or so, Richard adds. In
our research, theFRP rates are still falling short of where other
industries LaborRates are. Theyre falling short of mechanical Labor
Rates andeven the Labor Rates for bicycle repairs. We think that is
atremendous injustice. The past few months have seen National
AutoBody Researchpartner with shops or industry associations in New
Jersey, NorthCarolina, Ohio, Idaho, Texas, Georgia and Florida to
bring thesurveys to these states. In most cases, these surveys are
namedafter a prominent repairer in that state. For instance, the
Ohio sur-vey bears that name of noted industry leader Bob Juniper,
whilethe North Carolina survey is named after industry
professionaland recently elected SCRS Board member Michael
Bradshaw. Allcurrent state surveys also include the name of
outspoken industryadvocate and Florida shop owner Ray Gunder. Not
surprisingly,Richard is pleased and honored to receive these public
endorse-ments from these well-known industry figures.
Their motive is the care and safety of the consumer and
thewelfare and wellbeing of the collision industry, he says.
Theyare the leaders, the people who are cutting the path and are
will-ing to fight the battle for fair, reasonable pricing in the
collisionindustry. There is a desperate need to raise rates to that
level, andtheyre supportive of the Variable Rate System. Our hope
is thatother repair professionals will look at these men and say,
If thoseguys believe in the system, maybe we need to give it a
look. Closer to home, AASP/NJ has been a strong and very
vocalsupporter of the Variable Rate System. Earlier this year, the
asso-ciation teamed with NABR to sponsor the AASP/NJ VRS RayGunder
Real-Time Labor Rate Survey in the state of New Jersey. NABR is
thrilled to work with AASP/NJ and CharlieBryant to bring the
Variable Rate System to New Jersey, offeredRichard in a prepared
statement at the time of the union. [AASP/NJ Executive Director]
Charlie [Bryant] has shown himself to bea courageous visionary
willing to go to bat for a product he feelswill benefit the
industry that hes devoted his life to. Likewise,AASP/NJ has
demonstrated the wisdom to put aside old precon-ceived ideas about
Labor Rate surveys to support a technologythat could revolutionize
Labor Rate pricing for the auto collisionindustry, for the ultimate
wellbeing and safety of the consumer. Were very excited about the
Variable Rate System becauseit is nothing like the traditional
surveys we have seen in the past,added Bryant. The VRS gathers the
important information thatseparates one shop from another their
level of training, level ofinvestment in equipment, the type of
vehicle being worked onand more and then reports back with a range
of rates using anapples-to-apples comparison. I would strongly
recommend thatcollision shops look further into the Variable Rate
System, signup and give it an opportunity to make a difference. In
March, the Valenzuelas used the 38th Annual NORTH-EAST Automotive
Services Show as an opportunity to showcase the Variable Rate
System to the shops that wouldbenefit from it. Their presentation
was easily one of highlights of this years installment of AASP/NJs
flagship event. Theres a nucleus of shops in the New Jersey market
thatare incredibly supportive, Richard says. Weve developed
greatfriendships that make it easier to help the shops. The
relationshipwith AASP/NJ has been excellent. Of course, a tool as
revolutionary as the Variable Rate Sys-tem is only helpful to your
business if you take the time to utilizeit. As Richard says, The
Variable Rate System is not a magicwand that you wave in the air
and then Labor Rates increase.Dont subscribe and then put it on the
shelf and think the rates aregoing to increase because you
subscribed. You have to use thesystem. Our subscribers who are
successful in raising the rates are
the ones who are actively using the system and have integrated
itinto their day-to-day business, adds Sam. If you do that,
yourrates will go up. We just have too much proof that it works
whenyou use the tool. NJA
For more information on the Variable Rate System, visit
nationalautobodyresearch.com.
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 50
-
New Jersey Automotive | June 2015 | 51
high-strength steel is still a steel, thereare different
attributes to high-strengthsteel that make it unique
versustraditional mild steels; there are somenew techniques
required to deal withhigh-strength steels. Im not sure the industry
really puts enough attention tothat factor. While the industrys all
excited about aluminum, theres a lotmore high-strength steel being
used and high-strength steel is not the same as steel. Aluminum is
coming into the market; we saw that with the F-150 thisyear. But
aluminums been around for alittle while; Jaguar/Land Rover uses
aluminum, and Audi uses aluminum. Itsnot that its completely new,
but all of asudden its on the mainstream, highest-volume vehicle in
the United States, sothats a big deal. Carbon fibers outthere, and
magnesiums showingup...Youve got all this stuff going on interms of
the body and structure of the vehicle, and then you throw in all
theelectronics that are coming to the fore-front...Quite frankly,
the electrical aspects of the repair are becoming muchmore
significant and are very critical toongoing proper performance in
the vehicle from a safety perspective. So you combine all the
technology changes that are going to happen driven by legislation
and consumer demand forelectronics and all the fancy things
thatcars do together with the repetitive 75to 100 new vehicles each
year, and itsno longer a model change where youhave a new paint on
the car and somenew fabric on the seats; youve got a sig-nificant
changing of the DNA of the ve-hicle thats happening and will
continueto happen over the next decade. So ifyoure not training,
how do you keepabreast of all that is going on, and howdo you know
that youre able to performcomplete, safe and quality repairs? We
need to get real as an industry.We have technology shifting that
requires new thinking. At the same time,you can generate a
meaningful ROI byadopting a commitment to education andknowledge.
Portions of this interview were edited forspace and clarity. Look
for part two of our discussion withJohn Van Alstyne in next months
New JerseyAutomotive.
NJA
continued from page 43I-CAR FEATURE
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 51
-
52 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 52
-
New Jersey Automotive | June 2015 | 53
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 53
-
54 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 54
-
New Jersey Automotive | June 2015 | 55
ARANJ 2015 OfficersPresident Bob Dirkes / Dirkes Used Auto
Parts
(609) 625-1718 / [email protected] Vice President Ian
Szoboszlay / Ocean County Auto
(732) 349-0332 / [email protected] Vice President
Darryl Carmen / Lentini Auto Salvage
(908) 782-6838 / [email protected] Vice President Joe
Goodman / Leesville Auto
(732) 388-0783/ [email protected] Director Brian
Snyder / Auto Recyclers of NJ
(609) 714-2339 / [email protected]
ARANJ 2015 Board of Directors
ARANJ The Automotive Recyclers Association of New Jersey
Mike Ronayne Tilghmans Auto Parts
(609) 723-7469 [email protected] Yeager EL & M Auto
(609) 561-2266 [email protected]
Rodney Krawczyk Ace Auto Wreckers
(732) 254-9816 [email protected]
Mike Caputo Lacey Used Auto Parts, Inc.
(609) [email protected]
Bert Witcraft Auto Express
(856) 728-8367Ed Silipena
American II Autos (609) 965-6700
[email protected]
Harry Shover Porchtown Auto (856) 694-1555Norm Vachon
Port Murray Auto (908) 689-3152
[email protected]
WhartonInsurance BriefsAn ARA Member The economy can create many
changes in the insuranceindustry, some good and some not so good.
When an insurance company has lost premium income, they may
lowerpremiums to attract new customers or enter into a field of
business that they have not entertained before. The latter
hasbecome a concern to me and should be a concern to you. Be very
cautious when you are approached by an agentrepresenting an
insurance company that you dont recognize or that has not written
insurance for your industry in the past. A new company is willing
to lower premiums to get a marketshare of the industry business.
Although the premium may beless, you need to thoroughly evaluate
the coverage, exclusionsand conditions of the policy. When making
your decision, lookfor an agent and insurance company that is
experienced in your industry. They understand your exposures and
canprovide proper coverage to meet your needs. If you have
anyquestions or concerns regarding quotes you have received,please
feel free to call me to discuss it.
Mario DeFilippis, AAI, Vice President800-221-0003 (1320)
908-513-8588 (cell)
[email protected]
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 55
-
56 | New Jersey Automotive | June 2015
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 56
-
Thank you from AASP/NJ for attendingand exhibiting at NORTHEAST
2015!
Save the Dates for 2016!March 18, 19, 20, 2016
New Jersey Automotive | June 2015 | 57
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 57
-
58 | New Jersey Automotive | June 2015
Acme Nissan ..............................................11
Amato Agency ............................................17
Audi Group
................................................30-31
Axalta Coating Systems ..............................6
BMW Group
..................................................40-41
Bridgewater Acura ......................................53
Cadillac of Mahwah ....................................18
CCC Comp-Est ..........................................16
Classic
Audi................................................10
Continental Auto Parts ................................55
Cycan Industries ........................................33
Empire Auto Parts ......................................51
FASTLIGN ..............................................21
Flemington Audi..........................................5
Flemington Group ......................................IBC
Fred Beans Parts ........................................4
Future Cure
................................................16
Glen Toyota
................................................OBC
Help Wanted ..............................................9
Hyundai Group............................................23
JMK BMW..................................................35
JMK Saab/JMK Fiat ....................................9
Klean Frame ..............................................51
Maxon Mazda ............................................46
Maxon Hyundai ..........................................36
Mazda Group..............................................34
Mercedes-Benz of Freehold ........................57
MINI of Manhattan ......................................8
MINI Group
................................................19
Mitsubishi Group ........................................29
Mopar Group ..............................................24
NORTHEAST 2016 ..................................57
NUCAR.......................................................12-13
Paul Miller Audi
..........................................44
Porsche Group............................................47
PPG
..........................................................3
PPGMS
......................................................32
Prestige Motors ..........................................22
Princeton BMW ..........................................45
Princeton MINI............................................33
Sherwin-Williams........................................37
Subaru Group ............................................56
Town Motors ..............................................15
Toyota Group
..............................................54
Toyota of Hackensack ................................IFC
Valtek
........................................................58
VIP Honda
..................................................53
VW Group
..................................................52
Wheel Collision Center ................................58
ADVERTISERS INDEX
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 58
-
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 59
-
NJA0615.qxp_NEW JERSEY AUTOMOTIVE 6/1/15 6:07 PM Page 60