Vaughn Pappin and Martin Riseley have merged their businesses and now own 11 smash repair shops that span three states. Sam Street met with the duo at their purpose-built rapid repair facility in Sydney’s Seven Hills to ask about the pros and cons of running a business chain.
Pappin brought the Queensland shops of SmashCare to the party; second-generation owner Riseley had six shops in Victoria. Both had a belief that it was going to be tougher for single operators in the future and that expanding to other states and reaping the economies of scale that one organisation can give was the correct business strategy to adopt.
It was IAG request for proposal that acted as the catalyst to bring these two business owners together. They have a lot in common – similar attitudes towards the business include not only embracing changes that occur in the industry but proactively seeking new ways of working and influencing the future of the industry they both love. They also both have tow truck businesses and were keen to adopt what they refer to as ‘true’ rapid repair facilities. It was decided to adopt the strong corporate identity of the well-established SmashCare brand for the whole group.
Offering a career path
They make a strong argument that an interstate chain can attract more people into an industry desperate for new blood.
“The single site operator can’t really offer a full career path. The industry is losing people faster than they are gaining them. Insurers need smash repairers and smash repairers need insurers,” Pappin says.
”But without quality staff and the way the industry has been going, we won’t survive. The developments in technology and speed with which customers are expecting their cars to be repaired means there is even more of a demand for skilled staff. The emphasis on a career path just hasn’t been there historically.
“There are so many more opportunities for a long and fulfilling career within a larger organisation. If staff want to get off the shop floor they can try out human resources, procurement or a management role.”
Investment in training
With an interstate operation, the pair point out, as well as a variety of roles on offer SmashCare is well placed to keep staff. One of the reasons they will be particularly keen to hang onto those staff is the significant investment in training the SmashCare team. Each of the 181 staff has access to a training programme that has been tailor made for the group. All the managers, estimators and front of house staff are Cert IV qualified, there’s a SmashCare boot camp for intense learning
or the opportunity to learn at a more leisurely pace online and lean processes are a core philosophy of the group.
True rapid processes
The new NRMA rapid repair facility, which opened in Sydney’s Seven Hills in November last year, is a very impressive set up. The shop uses the Italian manufacturer Symach’s equipment wherever possible. As well as ‘blink of an eye’ infra red curing in the parts booth and larger booth, the power and air compressor workstations are also Symach. Pappin remarked wryly that the booths were less than a doddle to get approved but after much perseverance and deep breathing approval was achieved. The processes employed here are distinct from traditional repair methods employed at other shops in the group.
Consistent volume, around 80 cars per week for this shop, is essential for the business model to work. The pair doesn’t leave anything to chance. There’s a back up infra red arch in case of breakdown and such is SmashCare’s investment in Symach, they even lured a member of the supplier’s staff to work for them to ensure the smooth running of the equipment throughout the group. The group was also the first to use Axalta’s new Permahyd Hi-Tec paint. “Axalta has been a great partner and an enormous help developing our brand.” Riseley says.
Pappin and Riseley are very positive about their 11-strong repair network. The only major disadvantage they cite is travelling and the time spent away from family.
As for the future, these forward thinkers have an open mind. They aren’t currently planning to build a huge empire, “bigger isn’t always better,” Pappin says. However they are open to ideas such as a franchise arrangement if quality control can be maintained.