How smart are rapid repairs?
Smart Repair
Rapid repair is a key market segment in much of Europe. Sikkens takes a look at the processes needed to make it a success.
Bodyshops are in the business of selling labour. This is where the majority of the profit is made. Popular ideas of how to increase labour sales are: repair parts versus replace parts; smart repair techniques such as paintless dent repair and plastic repair; and rapid repair.
The big question is, how do you make these systems both successful and profitable for your shop?
Repair versus replace
When to repair parts versus replace parts is simply a matter of calculating the lowest cost method in addition to the technical feasibility. If the costs of repair are the same or lower than the cost of replacement, then repair is the best solution. The return on investment on special equipment for parts repairs depends on the amount of extra profit that it will generate.
Smart repairs
Smart repair techniques involve specially-trained personnel. Since their skills need to be maintained constantly, experience suggests that it is often more attractive to subcontract this work to specialists, unless the volume of work in this area is large enough to justify a full-time specialist in your own organisation.
Rapid repairs
Rapid repairs are a different concept altogether. In contrast to what many people think, the rapid repair concept is not simply a different repair technique. The most innovative part is the market approach as well as a different way of organising your repair shop.
The term 'rapid repairs' is being used for repairs that: will take up to a maximum of six hours or cost below $750; can be turned around within a day; and require no grinding, welding or straightening. The rapid repair concept is suitable for the bigger independent bodyshops and dealer-related bodyshops. Dedicated rapid repair shops have proven to be most successful overseas.
Rapid repairs have several differences to 'normal' repair procedures:
Different market approach: attract extra work coming into the shop
By its nature, these repairs are very often unclaimed through insurance companies or originate from dealerships and leasing companies. An overseas analysis has shown that only 50 per cent of the total number of repairs are claimed. This means there is still a huge market potential in the unclaimed damages. Many repairs are never done at all because the car owner is not sure about the costs of the repair and is unaware of the time it takes to get the job done. By organising the work in a different way and by preventing the costly estimating activity, a standard price menu can be set up at very competitive prices to attract this end of the market.
Simply organising the physical work in a different way for these repairs will also make a repair shop more attractive to the usual work providers. However, because you will have the normal administrative costs, the savings will be less.
Different organisation of the physical work
Since the repairs are rather small, all the work can take place in one work bay (a specially designed and equipped prep stall), except for the spraying activities.
Ideally, one operator works on two work bays. The minimum size of the bays is seven metres deep and four metres wide and all tools should be readily available on dedicated trolleys. Infra red equipment is used and often fixed on a rail at the ceiling so it can be easily moved between the work bays.
Different administrative activities
Every shop owner who has a proper scheduling system in place should know well in advance when excess capacity is available for extra rapid repair work. The rapid repair jobs tyPlanning and scheduling of the rapid repair jobs is relatively simple because the labour is much less varied. Therefore fewer non-production personnel (managers, administrators, estimators etc) are required to coordinate the repair. The majority of the savings can be gained in this area.
A final remark needs to be made about courtesy cars. Since the repair will be handled in one day, there is often no need to supply a courtesy car. The customer can choose to pay for this extra service if required. Again another area where savings can be made in comparison to insurance work.
How can Akzo Nobel help?
Paint products
The most important requirements of the package of products are: a minimum of processing, mixing and cleaning; a wide spectrum of applications with a small product range; and quick application, flash off and drying times.
The Akzo Nobel staff can design the ideal package for an individual shop based on the available equipment. As a general rule, Akzo Nobel recommends wet-on-wet fillers (all the Akzo Nobel fillers can be rolled on or sprayed), the Autobase colour range (a very fast basecoat with short flash off times) and the combination of Autoclear MS1000 and the MS10 hardener, being the fastest system on the market.
Colourmatch
Superb colourmatch of your paint system is a must. Time spent on matching colours should be minimal. Sikkens prides itself on excellent colourmatch and has very user-friendly tools to get from code to colour.
Training
Setting up rapid repair requires all-round personnel. Next to product knowledge, operating skills are essential. The Akzo Nobel training centre in Melbourne organises special classes for technicians involved in rapid repairs.
Lay-out and design.
The Akzo Nobel consultants can help the bodyshop owners with the design of the rapid repair work bays and with the specifications of the proper equipment. If needed, the consultants can also help with the scheduling system and the marketing aspects of the rapid repair concept.
For more information, contact Paul Wake at Akzo Nobel Car Refinishes, tel: (03) 9646 5988.