Collision Quest's Blog

Best product + Best price = Shop profits

“Going lean” has been all the rage among collision repair consultants

over the past decade. Lean production in a body shop is aimed

at eliminating waste and disorganization in the repair process.

Going lean focuses on reducing cycle time to make a body shop

more productive, efficient and (hopefully) profitable. In addition to

squeezing out higher profits, the benefits of lean production can

be improved quality, enhanced customer service, and improved

employee satisfaction.

But what if lean is not enough? Are there additional profits to be

found in your shop? What is the next step beyond lean? Once you’ve

trimmed all the fat from your shop’s production process in order to

save time and reduce waste, the next step is to start reducing direct

costs. The hard part is to do so without jeopardizing quality and

customer service.

One of the biggest area of potential savings will be found in the

products and equipment you use. We all know that there is a wide

range of prices for essentials such as paint & materials, spray

booths, lifts, spray guns, frame machines, welding units and other

items you use every day. There is also a wide range in quality, which

is where the danger comes in.

Price vs. Value

Have you ever been enticed to switch suppliers on a particular

product with the promise of saving time and money, only to find that

you saved neither? Ever regretted buying a low-cost alternative

when it failed to perform? How can you judge

in advance whether or not a product or piece of

equipment will live up to expectations?

The optimal situation is to get the best product at the

best value. Notice that I did not write “best price.”

Value is a combination of price and performance. You

may spend top dollar for a piece of equipment only to

find that it does not work any better than a lower cost

alternative. Similarly, you might try to save money by

buying the lowest cost materials but discover that the

cheap paint does not cover like a better product, or that

the energy costs on that bargain spray booth eat up all

your savings.

Buying strictly on low price is a sure way to be

disappointed, or worse. So is buying on reputation

alone. You need to do your homework on every single

item in your shop to make sure it is delivering the

maximum value. Research all purchases, even those

that may seem trivial. For example, a roll of masking

tape is a low cost item. But if each roll you buy of an

cheaper tape gives you 10% less tape, your technicians

are going to become frustrated and you are going to

need to buy more rolls over the course of the year.

Do Your Homework Before Buying

Don’t go just by a company’s sales literature or a

magazine ad, or even the promises of a sales person.

Do your own research by talking to other shop owners

who are using the products or equipment you are

considering. If you belong to a shop network get

feedback from other members. If possible, run a trial of

new paint or materials before committing. Do the same

with larger equipment purchases by asking to see the

spray booth, lift or frame machine in action.

If you do decide to purchase new equipment don’t be

sold on bells & whistles you don’t need. Determine your

specific uses in advance and buy only what you need to

meet them. Try to package related equipment, such as

spray booths with compressors, for reduced pricing on

each piece.

Be smarter about how you buy the materials and

equipment you use in your shop and you’ll soon realize

that steady profits don’t come from always taking the

least expensive alternative. It is the long term value of

your purchases that adds up to a stronger bottom line.