new england automotive report august 2015

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AUTAUT MM TIVETIVEN E WN E W E N G L A N DE N G L A N D

Serving The new englAnd ColliSion And MeChAniCAl repAir indUSTryMASSACHUSETTS

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

August 2015U.S.A. $5.95

2 August 2015 New England Automotive Report

New England Automotive Report August 2015 5

CONTENTS

7 | CASINO NIGHT SAVE THE DATE10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR11 | IN MEMORIAM: PEGGY CAHILL15 | AASP/MA SUSTAINING SPONSORS

18 | AASP/MA MIDSTATE CHAPTER BBQ NOTICE21 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS53 | AASP/MA MEMBERSHIP APPLICATION54 | INDEX OF ADVERTISERS

August 2015 Volume 13, No. 8

ALSO THIS ISSUE

COVER STORY44 | 2015 AASP/MA GOLF OUTING

HIGHLIGHTS Coverage by Joel Gausten

DEPARTMENTSPRESIDENTS MESSAGE8 | AASP/MA on the Front Lines with Your Legislatorsby Molly Brodeur

SPONSOR SPOTLIGHT 14 | Size Matters: NFP Can Accommodate YourInsurance Needs by Jacquelyn Bauman

INSIDE AASP/MA16 | Meet the Board: Peter Langoneby Jacquelyn Bauman

LOCAL NEWS by Joel Gausten24 | Towing and Collision Veteran Adds NewVoice to ADALB

26 | AASP/MA Seminar Offers Solutions to ProfitLeaks

30 | Short-Pay Issues Explored at Waltham Event

INDUSTRY UPDATE34 | CT Supreme Court Reverses $34.7MHartford Verdict

VOCATIONAL SCHOOL SPOTLIGHT36 | Putnam Academy Hosts Collision RepairAdvisory BBQby Joel Gausten

LEGAL PERSPECTIVE40 | ACV, Stated Value & Agreed Valueby Jim Castleman

EQUIPMENT AND TOOLING50 | Necessary Tools, Necessary Spendingby Jacquelyn Bauman


STAFF

PUBLISHED BY: Thomas Greco Publishing, Inc.244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

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AASP/MA EXECUTIVE COMMITTEEPRESIDENTMolly BrodeurVICE PRESIDENTAdam IoakimSECRETARYGary CloutierTREASURERKevin GalleraniIMMEDIATE PAST PRESIDENTPaul Hendricks

AASP/MA STATEWIDE DIRECTORSCOLLISION DIRECTORRick Starbard

AASP/MA CHAPTER DIRECTORSNORTHEAST CHAPTER DIRECTORSAlex FalzoneKevin KyesSOUTHEAST CHAPTER DIRECTORSMichael PenachoDarlene AndradeMIDSTATE CHAPTER DIRECTORSTom RicciRay BelsitoWESTERN CHAPTER DIRECTORPeter Langone

PUBLISHERThomas Greco ([email protected])

DIRECTOR OF SALESAlicia Figurelli ([email protected])

EDITORJoel Gausten ([email protected])

ART DIRECTORLea Velocci ([email protected])

MANAGING EDITORJacquelyn Bauman ([email protected])

PRODUCTION Donna Greco ([email protected])

WWW.AASPMA.ORG

AASP/MA EXECUTIVE DIRECTORJillian M. Zywien

12 Post Office Square, 6th Floor Boston, MA 02109phone: (617) 574-0741 Fax: (617) 695-0173

Email: [email protected]

MASSACHUSETTS


New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright 2015 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com/IStock Photo.


August 2015August 25, 2015

AASP/MA Board of Directors MeetingDoubletree Hotel

5400 Computer Dr., Westborough, MA

September 2015September 8, 2015

AASP/MA Statewide MeetingDoubletree Hotel

5400 Computer Dr., Westborough, MA

September 11, 2015AASP/MA MidState Chapter BBQ

Visit www.aaspma.org for event details

FOR A FULL LISTING OF UPCOMINGAASP/MA EVENTS AND TRAININGOPPORTUNITIES, PLEASE VISIT

WWW.AASPMA.ORG


PRESIDENTS MESSAGE

AASp/MA on The FronT lineSwiTh yoUr legiSlATorS

Ive used this space many times overthe years to urge our members to be anactive part of the legislative process andjoin the fights that AASP/MA is spear-heading in order to make our industry abetter place. This month, Id like to sharewith you a very encouraging story follow-ing a great experience we had in June.

Earlier this year, members ofAASP/MA visited Senator Eldridges of-fice to reintroduce ourselves, our initia-tives and the challenges faced by ourmembership. While the Senator was un-able to attend that day, we had a great dis-cussion with his chief of staff, MichaelCarr, and legislative aide, Minney. At the conclusion of our meeting, I suggested an in-person follow up meeting with the Senator at AlBrodeurs Auto Body. Immediately following my return to the office, I found a message from Senator Eldridges staff with a date and time thatworked for him to come by, and on June12, we welcomed the Senator for what I

believe was an informative tour and con-versation on our issues.

We started in our original shop (AlBrodeurs has two locations) and thenmade our way over to our newer space,informing Senator Eldridge that the deci-sion to purchase this property came aboutas a way to diversify our business, allow-ing us to invest in other aspects of the in-dustry versus only collision repair. As weall know in Massachusetts, our sup-pressed Labor Rate has stifled our abilityto properly equip our shops, attract, trainand retain technicians and quite simply,keep our doors open with the lowest re-imbursement rate in the country. Its ableak future, unless we do somethingabout it.

It was a wonderful experience havingSenator Eldridge out to our shop. We have developed a great rapport withhim and his staff, and he is genuinely interested in how the issues discussed areimpacting our industry. He has signed onas a sponsor of our Labor Rate bill in all

its incarnations, and continues to supportour efforts. The fact that collision repair isno longer a turnkey industry, with agedtechnicians nearing retirement and veryfew young tradesman ready in the wings,really seemed to resonate with him. I believe he understands our passion toturn this industry around and on behalfof AASP/MA, I thank him again for mak-ing the time to visit us and listen to ourconcerns.

Id like all our members to stronglyconsider reaching out to your local legis-lators and invite them to your facility. Donot be afraid to extend the olive branch!In all my years of association work, I haveyet to meet a legislator who is not commit-ted to helping small businesses. Theywant to understand our issues, and theyabsolutely want to get to know their con-stituents. Get them out to your shop sothat they can see the challenges youvefaced let them see the outdated equip-ment youre stuck with or the renovationsput on hold because of our Labor Rate.


Explain to them that we are headingdown a dangerous path unless thingschange soon. We at AASP/MA would behappy to assist you in contacting theselegislators, and we would be happy to joinyou in your meetings if youd like. Pleasecontact our office if youd like us to workwith you in educating your local lawmak-ers. Change IS possible!

AASP/MAPresident MollyBrodeur is the Chief Operating

Officer of Al Brodeurs AutoBody in Marlborough, MA.

She can be reached at (508) 485-1082 or

[email protected]

MASSACHUSETTS


As this issue went to press, New EnglandAutomotive Report received news thatADALB Advisory Ruling 2014-01 has been rescinded on a 3-2 vote. This rulingreverses the May 2014 decision that an appraisal conducted by a licensed appraiser via review of quality video ordigital images with documentation meetsthe requirements of 212 CMR 2.04(1)(d).

BREAKING NEWS

Dear Members,

If you have been reading previous issues of New Eng-land Automotive Report, you know the association has beenhighlighting our regulatory and legislative efforts. Ourfiled legislative matters were created by our LegislativeCommittee and staff in order to combat issues shops faceon a daily basis. Action on these legislative pieces will un-doubtedly solve industry-wide problems. Additionally, ourwork with the Commonwealth Automobile Reinsurers onlanguage changes to their Performance Standards continueto fight the insurance company practices of suppressing theLabor Rate. The association continues to work with theAuto Damage Appraiser Licensing Board, the AttorneyGeneral and the Division of Insurance to seek remedies forMassachusetts shops and consumers.

In addition to our legislative efforts to solve industry-related problems, the association under the direction ofPresident Molly Brodeur has created an Insurer RelationsCommittee. The Committee, which is chaired by AdamIoakim (co-owner of Hogan and Van Auto Body and vicepresident of AASP/MA) and Tom Ricci (owner of Body &

Paint Center of Hudson, MA) is charged with discoveringchallenges the industry is facing with insurance carriersand seeking answers on their behalf. The Committee re-cently sent a four-question survey to our members to iden-tify common insurer trends. The intent of the Committee isto seek answers and guidance from insurers on their prac-tices and work cooperatively to find solutions.

AASP/MA has also created a Vocational School Assess-ment Committee. Its purpose is to visit the Common-wealths vocational schools to work with the teachers andstudents to provide professional resources. AASP/MA hasbeen successful in educating the schools about our grantprogram through the Collision Repair Education Founda-tion (CREF), creating resources for teachers on I-CAR cur-riculum training and fostering the student interest inbecoming repair professionals. As you are all aware, the av-erage age of a technician in this country continues to rise.We need to focus on the future of this industry by continu-ing to dispel misconceptions about the profession.

The association has also added several new memberbenefit programs. At the time of this writing (and in an ef-fort to combat the recent rise in short-pays), the association

AASp/MA workS To SolveindUSTry-wide probleMS


A MESSAGE FROM THE EXECUTIVE DIRECTOR


AASP/MAExecutive Director Jillian Zywien has been a senior account executive at Lynch Associates for over six

years. She can be reached at (617) 574-0741 or via email [email protected].

MASSACHUSETTS


is currently working to create easy-to-fill-out forms that canbe filed and taken to court on your behalf to seek repara-tions. The association is also creating programs for financialand business consulting.

AASP/MA works to solve industry-wide problems. Istrongly encourage our members to participate in these ef-forts and help us build the success of the auto repair indus-try. If you are not a current member of the association,please consider joining today. Your support and participa-tion is necessary for change and continued success.

Sincerely,

Jillian Zywien, Executive Director

in MeMoriAM: peggy CAhill

As New England Automotive Report wentto press, the AASP/MAcommunity said goodbye to Peggy

Cahill of BC Auto Repair in Randolph, MA,who passed away on July 7 at 56. The wifeof Past AASP/MA President Bill Cahill,Peggy was a popular figure in the Massachusetts automotive service arena,known for her positive spirit and longstanding efforts on behalf on the industry. An in-depth tribute to Peggy will be featured in our next issue.

MASSACHUSETTS


Almost one year ago to the day, local company ASG Insurance became one with NFP Property and Casualty. NFPwas established with the intention to provide personal, professional and comprehensive service to companies bothpublic and private. This national, billion-dollar companysought out to acquire ASG because they were in need of aBoston-located property and casualty insurance broker. Thenpresident of the local insurance firm, Glenn Chavious knewthat merging with NFP would allow the company to provideits clients with a broader scope of services. Now managingdirector, Chavious runs the local organization, grows it organically and works to buy acquisi-tions that will benefit clients.

Ever since the company was underits previous acronym, they have beenactive sponsors of AASP/MA and theirevents. By donating prizes, sponsoringGolf Outings, Casino Nights, gifts andsilent auctions, they have developed aunique relationship with the local auto-motive service industry. Through theirrelationship with the AASP/MA Execu-tive Team at Lynch Associates, NFP hasgained a unique perspective of the automotive service field that not many

other property and casualty insurance agencies have beenprivy to.

Local members help us work on local programs to findthe right property and casualty carriers to partner with, explains Chavious. This allows us to add value to what weoffer our clients, such as pricing loss ratios, claims ratios, etc.Because of this, we can provide a platform for auto serviceproviders that is more compelling than smaller agencies.

The thing that Chavious believes sets NFP apart fromother insurance brokers in the area is the companys reach.

We provide our clients the ability to get everythingthey need in one spot, he explains. Ouragents have the ability to do everythingunder one roof. This includes insuranceclaims management and consulting, 401Kand retirement services, employee bene-fits and healthcare and private clientgroup services such as estate planningand personalized individual coverage.Plus, we have direct carrier relationshipsthat small mom-and-pop insurance bro-kers dont have access to, which meanswe can provide more services, better pric-ing and more coverage to our clients inthe auto service group.

SPONSOR SPOTLIGHT

Size MATTerS:nFp CAn ACCoMModATe yoUr inSUrAnCe needS

MASSACHUSETTS


MASSACHUSETTS


AASP/MA WORKS TO MAKE YOUR DAILYBUSINESS IN THE AUTOMOTIVE SERVICE INDUSTRY AS EASY AS POSSIBLE. Through relationships with a variety of companies, the association provides benefit services to members such as uniform services, SEO and website management, legal consultingservices and so much more. Now we want to hear from YOU.

Is there a service or company you think would make a great addition to AASP/MAs list of benefit providers? Let us know!

Contact Executive Director Jillian Zywien at (617) 574-0741 or email her at [email protected].

For more information on nFp property and Casualty, please visit nfppc.com or contactglenn Chavious directly at [email protected] or (617) 398-5586.

Contact AASP/MA at (617) 574-0741 / [email protected] for information on becoming an AASP/MA sponsor!

AASP/MA NEWSLETTER SPONSOR

AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

WOLPERTINSURANCE


In the collision repair industry, a sense of humor isoften an underrated talent. For Peter Langone, AASP/MABoard member and co-owner of Langonet Auto Body andFrame in Agawam, this gift is not in short supply.

At the age of 19, Langone went to work for a familyfriend. It was during his time at this position that he metJohn Gonet, who is still his business partner to this day.After about a year and a half, Langone and Gonet went towork out of a small two-car garage at Gonets house whilethey looked for a more suitable building for their buddingbusiness. In 1982, within about five months, they found a5,000-square-foot facility just enough for four bays and asmall office. Although they are at the same location to thisday, they have grown their business to a 13,000-square-footbuilding with 15 employees.

If you give me about 15 minutes, it might go down to14 employees, Langone jokes, demonstrating his lighterside. In all seriousness, we have a great time here. Mypartner and I work to give everyone good direction and layout our expectations of what we need them to do. Theyknow what we expect and it works out well that way. Mostof our employees have been here for 15-20 years. Some ofthem have only ever had a job here. They understand whatwe do.

In the future, getting new technicians will be the hard-est part of this industry, he continues. Were being pulledin two different directions and, if no changes are made, Isee a serious shortage of techs. In 10 years, I might have toput the tools back in my own hands.

Part of finding and maintaining the right techniciansfor ones shop comes from staying informed about the au-tomotive repair field. To Langone, this is the most impor-tant aspect of the association and what it provides to itsmembers.

Weve been part of the association since the 80s, whenit was still the Massachusetts Auto Body Association, andIve been a Board member since it was still MABA as well,he explains. The association provides information, whichis crucial in staying ahead of the game in this industry. I be-came a member for that very reason because I get the in-formation firsthand and I use it to help stay current onregulations and who is doing what. Some people are cyni-cal, but believe it or not, it helps.

Like any other shop owner, finding time away from thebusiness can be difficult for Langone.

What do I like to so when Im not in the shop? Is sleepan activity? Langone kids again. I like to ride my motor-cycles I have two quads for off-roading and a BMW forstreet riding. I enjoy doing things around the house, like

remodeling and even yardwork.

One way that Langonehas remained successfulthrough all of the years isthe simple aspect of keepinghis work life and home lifeseparate.

Im not sure if it is atalent or if I have just beenblessed with a short mem-ory, but when the key is inthe door and I turn the lock,the day is over, he says. Idont take work home with me. When I come back the nextday and turn the key again, the business is back again.Dont take business personally. Its business.

INSIDE MASSACHUSETTSBUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

by Jacquelyn BaumanMEET THE BOARD:

PETER LANGONE

MASSACHUSETTS



TRAINING OPPORTUNITIESin Massachusetts

All classes will be held at Fuller Auto Body (Auburn, MA)

Visit www.i-car.com for more information. For more information or to request a specific course, please contact the following I-CAR Committee Chairs:

Chairman - Josh Fuller: [email protected]

Vice Chair of Training - Justin Forkuo: [email protected]

Boston Committee Chair - Molly Brodeur: [email protected]

North Shore Committee Chair - Gary Brown: [email protected]

South Shore Committee Chair - Carl Garcia: [email protected]

Western MA Committee Chair - Andrew Potter: [email protected]

MASSACHUSETTS


Course Spotlight: Best Practices forHigh-Strength Steel Repairs Many of todays vehicles are built with High-Strength Steel (HSS) and Ultra High-StrengthSteel (UHSS) to improve fuel efficiency. Animproper repair to these materials can haveserious consequences, making the need forconsistent methodologies essential. Understanding how to properly work withthese materials is critical to ensuring that thevehicles integrity remains unchanged. Aftercompleting this course, students will be ableto identify the proper information needed todevelop a repair plan, identify how to test forHSS and UHSS (and common locationswhere UHSS can be found), recognize bestpractices for straightening HSS and UHSSvehicles and more.

Course Spotlight: Color Theory, MixingToners & TintingUnderstanding the nature of color theoryand the considerations that affect color is essential in achieving a blendable match.This course will provide knowledge on how toevaluate color, as well as discuss if and whentinting should be done. The content found inthis course can improve application andproblem-solving skills, which can also increase productivity through improved customer satisfaction, better cycle time andreduced rework.

Course Spotlight: Advanced Steering &Suspension Systems Damage Analysis Advanced steering and suspension systemsare increasingly popular in todays modernvehicles. If not repaired properly, other vehicle systems can be compromised, resulting in more damage. Every individualinvolved in the repair process is a stakeholder. Knowing what to look for pre-repair, how to execute the repairand what to check post-repair impacts every-one involved. This interactive course providesimportant information on the considerations for inspecting steering andsuspension systems and provides knowledgethat can lead to increased efficiency gains anda positive customer experience.

Course Spotlight: 2015 Ford F-150Structural Repair Training CourseCollision repair training experts at I-CARworked alongside Ford Motor Company engineers during the 2015 Ford F-150 designand development process, leveraging I-CARsexpertise to create training for collision repairers who will work on the new Fordtruck. Two years of development culminatesin a 2015 Ford F-150 Structural Repaircourse that covers all topics of aluminum and dives into vehicle-specific information.

August 5, 2015Best Practices For

High-Strength Steel Repairs

August 6, 2015Color Theory, Mixing Toners

and Tinting

August 15, 2015Advanced Steering and Suspen-sion Systems Damage Analysis

August 19, 20152015 Ford F-150 Structural Repair Training Course

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Ask about ourCompetitive PricesParts Line:508.316.8410Fax Line: 508.316.8397Parts Hours: Mon-Sat: 7:30-5:00280 East Washington St. North Attleboro, MA 02760



LOCAL NEWS

At the June 2 meeting of the AutoDamage Appraiser Licensing Board(ADALB), Massachusetts collision re-pair veteran and AASP/MA memberBill Johnson (Pleasant Street AutoBody, South Hadley) appeared as oneof three new members of the Boardappointed by Governor Charlie Baker.Johnson, who officially took his placeon the Board alongside fellow ap-pointees Rick Starbard (Ricks AutoCollision, Revere) and Lyle Pare (Ply-mouth Rock Assurance Corporation),replaces outgoing ADALB member TJMcClements.

An avid car enthusiast and re-pairer for more than 40 years, Johnsonalways knew his life would be in theindustry. In fact, he actually openedup his first garage as a 10th grader in1973! In 1981, he went full time withthe opening of Pleasant Street AutoBody and Repair in South Hadley. The34 years that followed saw Johnsonsoperation grow by leaps and bounds.Today, his ever-expanding enterprise(featuring the now-35,000-square-footSouth Hadley shop and additionaltow/heavy truck-related locations inHolyoke, Belchertown and Westfield)includes a successful towing company(Hampshire Towing) and a heating oilbusiness (Amber Energy). In 1989,Johnson had five employees; today, hehas 46. Combined, these businessesgross more than $5 million a year insales. Johnsons wife, Tracey and sonsRobert (who heads up the towing divi-sion) and David (accounts payable/bookkeeping) join the industry vet-eran in his day-to-day operations.

Throughout his auto body career,Johnson has maintained a strong senseof independence that only strength-ened when the referral system hit theindustry in the late 80s. As a repairerwho has never signed a contract of

this nature with any insurer, he ishopeful that his business philosophywill have a positive impact on hiswork with the ADALB.

I was always a little befuddledhow shops that were on referral listscould represent the industry on theAuto Damage Appraiser LicensingBoard, because theyre beholden tosomebody, he offers. My book ofbusiness is mine; I dont have to worryabout an insurance agent, company orappraiser referring business to me. Imworking with third- and fourth-gener-ation customers. Whatever I have ismine.

I dont want to demonize busi-nesspeople who make a decision that,for whatever reason, they feel theyneed to get work referred to them, headds. But just because XYZ AutoBody signs a contract with ABC Insur-ance, how does that bind me to thatcontract?

Along with his collision repairbusiness, Johnson has built HampshireTowing into one of the most recog-nized institutions in the area, currentlyboasting 30 trucks on the road.

I always had a tow truck that wasancillary to my body shop, explainsthe owner, who has served as the pres-ident of the Statewide Towing Associ-ation since 2002. When I made thedecision not to be a referral shop foranybody, I really started looking at thetowing industry.

In addition to his many years inthe automotive industry, Johnson hasa long history in public service. A for-mer selectman for the Town of Granbyfor 15 years, he accepted an appoint-ment by former Governor Swift toserve as the public member of theBoard of Registration of Real EstateAppraisers from 2003 to 2008. He hasalso served as an alternate member of

the Pioneer Valley Planning Commis-sion and has been a School Committeemember for Pathfinder Regional Tech-nical High school since 2009.

Johnson is looking forward toserving the public in his new role withthe ADALB.

My biggest hope is that we caneffect change as a Board and have allthe players follow the CMR as it re-lates to negotiations and fair play, hesays. Im not the type of person tomake false promises. All I can say tothe industry is that Im going to trymy hardest to make necessary changesand make sure the rules are being fol-lowed.

Above all, Johnson insists that hiswork on the Board will be based onhonest, straightforward dealings.

Anybody who knows me knowsthat Im tenacious when it comes to is-sues, he says. Id rather go up to thebat swinging than not go up to the batat all. I will not be a silent person onthe Board.

Towing And ColliSionveTerAn AddS

new voiCe To AdAlb

MASSACHUSETTS


Bill Johnson

Are you currently experiencing a decrease in funds in your bank account despite the fact that youreseeing more sales through your door?If youre wondering why your business isnt making as much moneyas it should, there is a very goodchance that you have five commonprofit leaks that you need to fillright away before they put the futureof your shop in jeopardy.

On June 16, AASP/MA welcomedindustry consultant Anne Dickinson of East Beckwith Associates for PlugYour Leaks and Grow Your Business:The 5 Deadliest Profit Leaks and How to Stop Them, an intriguingseminar held at the Roger L. PutnamVocational-Technical Academy inSpringfield.

As Dickinson explained, the firstmajor profit leak comes from a business inability to keep accurateand current books. Inaccurate information often leads to ineffectivedecision making and an increased riskof failure. (In fact, Dickinson notedthat 80 percent of small businesses gounder within the first five years.)

If you dont have good informa-tion, you cant make good decisions,she said.

As a solution to this potentialprofit leak, Dickinson recommendedhiring a bookkeeper and not just onewho gets a box of papers from theshop once a year. In order to be successful in closing this leak, a business must use a bookkeeper oftenand make sure their paperwork is always up to date.

The second profit leak stems fromrunning the company on the onlinebank balance alone. This often leads to bounced checks, as your online balance might give a business a falsesense of security by showing a totalthat doesnt reflect checks that havenot yet cleared. Dickinson shared thehorror story of one client in particularwho ended up with more than $1,000in bounced check fees in only a month

by relying strictly on what his onlinebalance said.

If a shop owner is unaware of hisor her business cost structure in detail,he or she is heading for another seri-ous profit leak. Knowing the cost ofevery job that comes through the doorhelps a shop set prices in an effectiveand profitable manner. But if a shop ischarging $100 for a service that theythink might cost them $80ish, theymight have a major problem aroundthe corner.

As Dickinson said, You could belosing money on every sale and notknow it.

Seeing an increase in sales but adecrease in cash leads to another profitleak that requires attention. If a shophas a habit of paying bills before therevenue to handle those expensescomes in, a shop could end up in adownward spiral of borrowing moneyto pay for debts that should be

handled by a well-maintained accounts receivable system. As oneway to plug the leak, Dickinson referred back to the importance ofknowing the cost of each service oritem offered. For example, if an itemcosts six to eight dollars and yourcompetitors are charging the cus-tomers $25 for it, dont think youredoing yourself any favors by charging$10 for it to get business. Instead,charge $20; this will still make you less expensive than the competition,but give you a stronger amount of revenue.

The final profit leak comes fromlosing control of your receivables,which Dickinson suggested could besolved by maintaining regular invoic-ing, setting up a merchant account forcredit card orders and staying on topof collections.

Above all, Dickinson stressed thatmaking even the smallest change toany of the practices above can have anenormously positive impact on ashops bottom line.

I have a client [in the auto bodyindustry] who Ive worked with for alittle while now, she offered. Theymade really one small tweak to theiroperation...and they jumped their revenue $1 million the first year...Itdoesnt necessarily take a lot to fix [aleak], but youve got to find it.


LOCAL NEWS

AASp/MA SeMinAr oFFerS SolUTionSTo proFiT leAkS

Industry consultant Anne Dickinson

More information on

east

beckwith Associates is

available

at eastbeckwithAssoc

iates.com.

MASSACHUSETTS


LOCAL NEWS

ShorT-pAy iSSUeS explored ATwAlThAM evenT

On June 24, a roomful of body repair industry professionals and attorneys from three states attended afull-day seminar in Waltham to learn avariety of methods to help them collecttheir short-paid invoices from payers/insurers.

Participants were instructed onhow to create their own pricing struc-tures, charge for all products sold andwork performed and to set up a methodfor collecting invoices not fully paid, in-cluding the use of the court system (es-pecially for simple breach of contractcases).

Longtime independent industry ad-vocates Tony Lombardozzi and PeterAbdelmaseh (co-founders of SuperareAdvertising + Marketing Agency, located in Belmont, MA) spoke of themain reasons shop owners have falleninto the poor financial condition thatplagues the industry, mainly the pas-sive acceptance of what they refer to asthe Insurer Control and Payment Sys-tem or ICPS.

Lombardozzi and Abdelmaseh con-tend that the ICPS has been constructedby many insurers that employ pricinglevers, such as so-called Labor Ratesurveys, dollars-times-hours productpricing and the ubiquitous we dontpay for that response to random in-voice line items. It was explained thatinsurers use these levers as negotiatingtechniques, and that they are designedwith just one goal in mind: to suppressnormal free market pricing mecha-nisms. Shops were advised to simplyreject and work around that system.

Shop owners were shown how theideal process would work, along withthe documentation and legal principlesthat could make doing it the rightway practical for shops, and present asignificant challenge for insurers to de-fend against. The presenters stressedthat using the proper contracts and doc-umentation what they referred to as

the document package would con-stitute high-quality, believable evidencein a courtroom.

A segment of the presentation fo-cused on fear and how it affects thebody shop repair industry. The audi-ence was told that fear was the basis of


Tony Lombardozzi (left) and Peter Abdelmaseh

continued on pg. 54


INDUSTRY UPDATE

As New England Automotive Report went to press, theConnecticut Supreme Court issued a verdict reversing the$34.7 million judgment in a much-discussed class actioncase against The Hartford Fire Insurance Company. Plain-tiffs in the case included the Auto Body Association ofConnecticut (ABAC) and hundreds of body shops in thestate.

As previously discussed in New England AutomotiveReport, the lawsuit (originally filed in 2003 and eventuallycertified as a class in a 5-0 decision) claimed that TheHartford regularly engaged in unfair business practicesby using its in-house employee appraisers and network ofDRP facilities to artificially suppress the Labor Rates paidto shops in Connecticut. In November 2009, a SupremeCourt jury in Stamford awarded the shops $14.7 millionfor compensatory damages. Three years later, ConnecticutSuperior Court Judge Alfred J. Jennings awarded an addi-tional $20 million in punitive damages after consideringpost-trial motions by the plaintiffs. Additionally, he issuedan order granting injunctive relief requiring that The

Hartford refrain from interfering with the independentjudgment of motor vehicle physical damage appraisers inits employ in the performance of their dutiesincludingthe determination of the hourly rate to be applied in cal-culating the labor component of costs to repair. The Hart-ford appealed the order, with closing arguments heardlast January.

In its decision, the Court stated that collision repairshops are capable of representing their own interests,and certainly are under no obligation to accept insurance-related work that is not sufficiently remunerative,adding that the trial court incorrectly concluded the va-lidity that the Plaintiffs claim alleging unfair Labor Ratepractices.

The full text of the final verdict is available attinyurl.com/pajm579. An extensive report on the decisionwill be featured in an upcoming New England AutomotiveReport.

CT SUpreMe CoUrT reverSeS$34.7M hArTFord verdiCT

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VOCATIONAL SCHOOL SPOTLIGHT

On June 16, more than 200 peoplegathered at the Automotive CollisionRepair Technology Department at theRoger L. Putnam Vocational-TechnicalAcademy in Springfield for the ThirdAnnual Collision Repair AdvisoryBBQ. Held to thank the members ofthe programs Advisory Board, as wellas to foster stronger relationships be-tween tomorrows repair professionalsand the companies that will employthem, the event attracted students,vendors, educators, Committee

members (including Chairman andAASP/MA member Craig Gridley),state representatives and SpringfieldPublicSchools Superintendent DanielJ.Warwick. The fun-filled gatheringincluded a DJ, special raffle prizes andtables of delicious food, mostly pre-pared in the smoker provided byAASP/MA Board member GaryCloutier. Brief presentations weregiven by Allan Smith of I-CAR andBill Johnson of the MassachusettsAuto Body Appraiser Licensing Board

(ADALB), while AASP/MA memberSteve Creanza of West SpringfieldAuto Parts received a special awardfor his exceptional efforts in support of the Academys Collision Repair program. Additionally, Kevin Lom-bard of Lombard Equipment was onhand to demonstrate current alu-minum welding techniques and an-swer any questions from attendeesregarding this new technology. Theevening also included the AASP/MAStatewide Meeting, which was held

pUTnAM ACAdeMy hoSTS ColliSion repAir AdviSory bbQ

AASP/MA Board member Gary Cloutierssmoker kept the food coming.

Putnams own Ken Downes helped serve up the fun.

Putnams Collision Repair classnow boasts a Motojig motorcyclestraightener.

The festivities drew more than 200 members of the automotive community.

Putnam Sheet Metal instructor Les Gauthier (far left) and student Justin Montos (far right) present a gift to SpringfieldPublic Schools Superintendent Daniel J. Warwick in honor of his family's Irish heritage as Putnam Collision Repair instructor John Kennedy looks on.


immediately following the an-nouncement of raffle prizes and featured a guest presentation byAnne Dickinson of East BeckwithAssociates (see story on page 26).

For the first time in the eventshistory, the BBQ included participa-tion and attendance from the Advi-sory Committees and students fromthe schools Electrical, AutomotiveTechnology and Sheet Metal depart-ments.

We all have the same purposeand mission, offers Collision Re-pair Instructor John Kennedy, whois joined in his department by Co-Instructor Ray Lapite and Parapro-fessionals Ken Downes and CarmenSolis. Were state-of-the-art and onthe cutting edge, and we want to beproactive and get these kids jobs.

Launched in December 2012,the Academys Collision RepairCenter stands as one of the most ex-tensive vocational training facilitiesin the nation. Putnams program fol-lows the I-CAR Professional Devel-opment Program and an advancedNATEF curriculum. The schoolsvast array of high-tech equipmentincludes an OTC Genesys automo-tive scanner, a Lincoln virtual realitywelder, state-of-the-art welders, two SimSpray virtual reality paintsimulators, a Chisum frame ma-chine, a Smartboard to view webi-nars, a spraybooth set up forwaterborne and solvent, a mixingroom and a paint deck. Recently, thedepartment brought in a GlobaljigSuperRotax universal fixture system

and a Motojig motorcycle framestraightener.

Were the only vocationalschool around that has that, saysKennedy of the Motojig. Id like totalk to the State Police aboutstraightening the frames on theirmotorcycles. Id also like to talk tolocal police and bike shops so wecan help them out. A lot of times, in-surers will total a motorcycle, butwith these capabilities, we canstraighten them and show the kidshow to do it.

By the end of Putnams four-year course, students have the basicskills needed to handle mechanical,electrical, body, paint and frame re-pair all of which make themhighly attractive to an industry indesperate need of new employees.

As a whole, this country hasdevalued vocational technical edu-cation for far too long, offers Put-nam Vocational Director HilaryWeisgerber. Now, the industries areclamoring for a skilled workforce.Folks are becoming very vocal aboutthe need for replacement workers,so theyre very supportive of voca-tional technical education, espe-cially in this Pioneer Valley area. Wedont operate in a vacuum; we de-pend on our Advisory Committee toeducate us on new trends in the in-dustry, along with new equipment.

In addition to celebrating theclose of another successful year, theCollision Repair Advisory BBQ of-fered an opportunity for membersof the auto body industry to

experience this impressive facilityfor themselves.

As Kennedy says, We like toleave a good impression, showcaseall the new technologies we haveand get everybody involved.

After touring the facility,AASP/MA President Molly Brodeurwas quick to share her enthusiasmfor what the school has accom-plished.

Its great to see that they havesuch a strong community that sup-ports their program here, she said.I think we can all take somethingaway from what John and his teamhave been able to do as far as reallyencouraging folks to participate inthe program at the Advisory Boardlevel.

The Academy wishes to thank3M, C.A.R. Products, HampdenZimmerman Electric Supply Co.,West Springfield Auto Parts,LKQ/Keystone, Lombard Equip-ment, I-CAR and Formula Productsfor providing special raffle prizesfor the event, in addition to thosedonated by the Sheet Metal Depart-ment (five business banners), Elec-trical Department (six giftcertificates), Automotive Technol-ogy Department (three vehiclealignments, three oil changes) andCollision Repair Department (threecomplete vehicle reconditionings,three vehicle washes/waxes). Forinformation on how to become in-volved in the Advisory Committee,contact Craig Gridley (Larrys AutoBody) at (413) 583-5738.

MASSACHUSETTS


Instructor John Kennedy (far left) and students from the Putnam AcademyCollision Repair department pose with products donated by Rick Casey ofLKQ/Keystone (second from left) through the Collision Repair EducationFoundation (photo by Ken Downes)

Putnam and AASP/MA honored Steve Creanza of West Springfield Auto Parts (second from left) for his strong support of the schools Collision Repair program.


I got a call last week from a collision repair shop ownerwho was having trouble negotiating the cost of repair for aclassic car. The vehicle owner had purchased a so-calledstated value insurance policy, pegging the insured valueof the car at $49,000. Because of the nature of the damage,as well as the work and parts needed to restore a classic ve-hicle, repair costs were going to be high. The insurance ap-praiser was warning the shop owner that the cost of repairplus the salvage value of the car was fast approaching the$49,000 stated value, and that he was going to total the carif the shop insisted that it needed any more money to makerepairs.

The shop owner called me, telling me he had quite adilemma. Hell, he said, this is a great car. Even with itsdamage, its salvage value alone is more than the $49,000stated value never mind the cost of repair. The appraiserdoesnt have a clue. Most importantly, the shop ownerwanted to know, Is the insurance appraiser right? Couldhe total the car if the cost of repair plus salvage value ex-ceeded the insurance policys stated value which itclearly did? Could he total the car, allowing the insurer topay the stated value amount, and then take the title to thecar and sell it for much more than the amount it was pay-ing on the total loss claim?

That did not seem proper, yet it seemed like it might bepossible. Could it be so?

ThE ShORT ANSwER, ThE LONG wAy AROuNdWhile it is not entirely clear, my short answer to the

shop owner was that the appraiser almost certainly couldnot so easily total the car and allow the insurer to gain anunwarranted windfall. My answer was based upon the im-plied definition of total loss in governing insurance regu-lations.

I say that the definition of total loss is implied, be-cause it is not definitively spelled out in any Massachusettsstatute or regulation. Yet, the Commissioner of Insurancesregulations that set standards for the repair of damaged ve-hicles, at 133 CMR 3.05(2), state: Whenever the appraisedcost of repair plus the probable salvage [of a damaged ve-hicle] may be reasonably expected to exceed the actual cashvalue (ACV), a [licensed] staff or independent appraisershall complete a total loss report. The implication is that atotal loss occurs only when the cost of repair plus salvagevalue reasonably may be expected to exceed the ACV ofthe car. This is the almost universally accepted standard inthe insurance industry.

However, in the situation that the shop owner called

me about, isnt the ACV equal to the stated value in the in-surance policy? In my opinion, no, it is not!

Stated value and actual cash value are two differ-ent concepts. Stated value is merely a dollar value agreedupon between the insurer and its customer for insurancepolicy purposes, setting an absolute upper limit on whatthe insurer is obligated to pay in all circumstances. Whileone might hope that a cars stated value may be equal to,or at least close to, the actual cash value of the insured vehicle, in any particular instance it may not be (and mayin fact be entirely arbitrary). Indeed, this seemed to be thecase with the classic vehicle that the shop had called meabout.

Actual cash value, on the other hand, is what a vehicleis really worth, and this is the figure that an appraisershould use in determining whether to total a damaged car.ACV is the true fair market value of the car, or what aknowing, willing buyer would pay a knowing, willingseller, neither being under any compulsion to act. Unlike afixed stated value, ACV is always an estimate, based on thebest judgment of knowledgeable experts as to what marketforces dictate.

The same regulation that gives an implied definition oftotal loss, at 133 CMR 133.05(1), mandates that an insurermust consider four particular factors in determining adamaged cars insured actual cash value when decidingwhether to total the car. Those factors are:

(1) The retail book value for a motor vehicle of likekind and quality, but for the damage incurred. This is thevalue set in any number of valuation guides, such as theNADA Guide, Kelley Blue Book or Edmunds retail values.Note that, for insurance purposes, ACV is the retail valueof a car, not the trade-in or private party sale value.

(2) The price paid for the vehicle plus the value ofprior improvements to the motor vehicle at the time of theaccident, less appropriate depreciation. This is a standardvaluation concept, most applicable to specialty vehicles forwhich a fixed market does not exist or for which the mar-ket is limited. It also may be used to determine addedvalue resulting from specialty upgrades to a car.

(3) The decrease in value of the motor vehicle result-ing from prior unrelated damage which is detected by theappraiser. This is a factor to be applied in determining aninsured loss, to be used in conjunction with the other valu-ation methods, to make sure that an insurer is not payingfor something beyond the scope of the insurance policy.

(4) The actual cost of purchase of an available motorvehicle of like kind and quality but for the damage

LEGAL PERSPECTIVE

ACv, STATed vAlUe& Agreed vAlUe

by James A. Castleman, Esq.


sustained. This is probably the most accurate factor for determining ACV. After all, if there is an exact replica of thedamaged car that is for sale and that can be purchased at aknown price, then that is truly the actual cash value of thedamaged car. But is there ever truly such a car? Unless it isa brand new car, coming off the showroom floor on thesame day as the damaged car, it will have some differencesin mileage, wear, options and condition. Like kind andquality is in the eye of the beholder. Yet, this standard al-lows consideration of things like the age of the tires, batter-ies and other wear items, how well the car has beenmaintained, how much mileage it has and other such fac-tors.

The bottom line for all of this is that the appraiser withwhom the shop owner was dealing should not have beenable to total their customers car unless the cost of repairplus the salvage value exceeded the true actual cash valueof the car, using the regulatory standards for determiningACV and not equating the insurance policy stated valuewith it.

ThEN, whATS SO GREAT AbOuT A STATEd VALuEINSuRANcE POLIcy?

It is not uncommon for me to hear about the owners ofclassic or antique cars being told by their insurance agentthat it is to their advantage to buy a stated value insurancepolicy. That way, they are told, they will make sure thatthey get the cars true value if there is a total loss. But as indicated by the situation herein, that is not necessarily the case. In fact, a stated value policy may work to the insureds disadvantage.

There are basically three types of physical damage autoinsurance policies available to owners of classic or antiquevehicles: ACV policies, stated value policies and agreedvalue policies. Each has its own pros and cons. And whatworks best for one car owner may not work best for an-other.

The typical standard ACV auto policy is the one thatmost of us have for regular private passenger automobiles.If there is a loss, the insurer is typically obligated to pay upto the actual cash value of the vehicle. This is no differentfor the owner of a classic or antique vehicle. If they have astandard ACV policy, then the insurer is on the hook forthat particular car, not just for a car of the same vintagethat has not been restored.

The problem for classic and antique car owners is thatif they have a loss, then it is their burden to establish thatthe car is a classic or antique, and it is their further burdento establish the true ACV of the vehicle. Establishing valuefor these cars is not as simple as it is for the run-of-the-millrecent vintage Mazda 3, Chevy Malibu or even BMW 750.Ideally, records should have been kept of all costs for thespecialty vehicle, including purchase price, all details ofrestoration work performed, all parts costs, pictures of thevehicle in its restored condition and any appraisals of valuethat may have been made for the car.

In order to make things easier for a specialty car owner,the concept of a stated value insurance policy was devel-oped. The theoretical idea was that, for a specialty car, theowner could get an appraisal of value, to be evaluated by

the insurer, and that the insured and insurer could come toan agreement for the amount of physical damage insurancethat would be applicable to the car. If there were a loss,then the insured would not have a burden of establishingthe insured value of the car. The stated value would gov-ern. The value and the premium would be set.

The problem with stated value policies is that, in real-ity, they set the maximum value that an insurer will pay,not an agreed ACV. If you read the fine print of the policies,you will determine that the insurer will pay the lesser of thestated value or the ACV of the car if there is a total loss. Soif the ACV is less than the stated value, then the insurerwill pay the ACV for a total loss; if the ACV is greater thanthe stated value, then the insurer will pay only the statedvalue. While the insured has less of a burden establishingthat a car is a classic or antique, the insured may actuallyhave less insurance coverage than if they had purchased astandard ACV policy. The insurer, on the other hand, isable to set an upper limit on its liability.

The agreed value policy is often seen as a better cover-age alternative for a specialty car owner. Like a statedvalue policy, a vehicle will be given a specified value forpurposes of the policy. But with an agreed value policy, theinsurer will give the actual agreed value; with some agreedvalue policies, the insurer will pay the greater of the agreedvalue or the ACV. Although with an agreed value policythere is frequently better coverage than with a standardACV policy, the premiums are higher and the insurance ismore difficult to get. Further, the insured has the burden ofestablishing the ACV of the vehicle at the time that the policyis purchased. After all, an insurer is not going to agree toprovide more coverage than a car is worth at the inceptionof the policy; it is just going to agree to provide at least thatamount of coverage if there is a loss, since it can knowinglyset a meaningful premium.

cONcLuSIONIf you have a customer with damage to a classic or an-

tique vehicle, it is imperative to find out what type of in-surance policy that they have. Is it ACV, stated value oragreed value? Then, it is important to know if the insurer isgoing to have a maximum liability, how they intend to de-termine salvage value of the car and whether it may be atotal loss. In doing so, be aware that the insurer may not becorrect in what it believes, and be aware of what governingMassachusetts regulations really say.

And if you own a classic or antique car, it is critical toknow the difference between the types of auto insurancepolicies that might be available for your car, as well as thesignificant differences in coverage between those types ofpolicies.

Attorney James Castleman is a managing member ofPaster, Rice &Castleman, LLC in Quincy, MA.

He can be reached at (617) 472-3424 or at [email protected].

MASSACHUSETTS


1 2

3 4

65

1. The First place team from kearns Collision. (l to r): ryan Sifferlen, Adam izbicki, dirk koopman, Thomas Coloniair2. The Second place/hole in one Sponsor/long Automotive team. (l to r): Tom Schube, Tim white, dave ovalles andbill Spellane 3. The Third place team from Cape Auto body (l to r): Tom Mayer, kevin gallerani, Sean Condon and lucas rhodes4. The team from Tournament Sponsor enterprise rent-A-Car (l to r): keith ells, Matt Cliffe, Seth roy and Mike kenton 5. (l to r): John panzino Jr. (T&S Auto body), Mike Johnson (Sherwin-williams), david elie (Acme body & paint), Johnpanzino (T&S Auto body)6. (l to r): Al brodeur (Al brodeur's Auto body), AASp/MA president Molly brodeur (Al brodeur's Auto body), Annedickinson (east beckwith Associates), paul Sargeant (Al brodeur's Auto body)

THE PLAYERS:


2015 AASP/MAGOLF OUTINGHIGHLIGHTS

JULY 8, 2015 CHARTER OAK COUNTRY CLUB HUDSON, MAPHOTOS BY JOEL GAUSTEN

7. (l to r): Tony briguglio (Albert kemperle), leonardo rodriguez (Albert kemperle), rick Starbard (rick's Auto Collision)8. (l to r): peter langone (langonet Auto body & Frame), gary Cloutier (Cloot's Auto body), Justin Forkou (290 Autobody), paul hendricks (hendricks Auto body)9. (l to r): Scott randall, Mary ellen randall, richard Connor and Matt peloquin of FinishMaster10. (l to r): Chris Sachs, Scott Carney, brian duffy and Albino dos Santos of the keystone Automotive/lkQ Corporation(hole in one Sponsor) team 11. (l to r): Chris Carlin, Shawn Flanders, Tim Carlin and Mike Ambrosino of the Fuller Automotive team 12. (l to r): roth wennerstrom (best Chevrolet), darlene Andrade (deluze Collision Center), evan leather (MartinSenour Automotive Finishes)

7

8

9

11


10

12

Tournament Sponsor: Enterprise Rent-A-Car

Hole In One Sponsors: Keystone Automotive/LKQ Corporation

R.H. Long Automotive Group Tournament Prize Sponsor: Bald Hill Dodge/Chrysler/Jeep/Kia

Raffle Sponsor: Sherwin-Williams, Guy's Auto Body,

J & R Auto Body Supply, Mercedes-Benz of Burlington Longest Drive Sponsor:

Lynch Associates, Inc. Closest to the Pin Sponsor:

cPrax Internet MarketingBreakfast Sponsor: J & R Auto Body SupplyLunch Sponsors:

Best Chevrolet, Gonnello SEO

Hole Sponsors:Admiral Fasteners; Al Brodeur's Auto Body; Albert Kemperle; Auto Body Builders, Inc.; Bodyand Paint Center of Hudson; Boutiette Auto Body;Cape Auto Body; Colonial Ford-Plymouth; DonKennet, Inc.; FinishMaster; Greco Publishing,Inc.; Hendricks Auto Body; Hogan and Van AutoBody; Ira Toyota/ Scion of Danvers; Jaffarian Automotive Group; Linders, Inc.; MarlboroNissa; Mercedes-Benz of Burlington; Paster,Rice & Castleman; PPG; Rainbow Auto Paint &Body Supplies; Ricks Auto Collision; Tasca Automotive Group; West Springfield Auto Parts

AASP/MA GOLF OUTING HIGHLIGHTS

AASP/MA THANKS ALL THE SPONSORS OF

THIS YEARS TOURNAMENT!

First Place TeamRyan Sifferlen, Adam Izbicki, Dirk Koopman, Thomas Coloniair

Second Place TeamTom Schube, Tim White, Dave Ovalles and Bill Spellane

Third Place TeamTom Mayer, Kevin Gallerani, Sean Condon and Lucas Rhodes

CONGRATULATIONS TO OUR WINNERS

In addition to winning Closest to the Pin, Leonardo Rodriguezof Albert Kemperle cleaned up

at the raffle!


Roth Wennerstrom (Best Chevrolet) won the

Longest Drive

Tim Carlin (Fuller Auto Bodyteam) won a Golf Gift Set courtesy of Mercedes-Benz

of Burlington

Sean Condon (Cape AutoBody team) took home RedSox tickets courtesy of J&R Auto Body Supply

According to industry expert Larry Montanez (P&LConsultants), the answer is both simple and complicated.The short answer is one that most shop owners have likelyheard a thousand times before. Every good shop needs aresistance welder, a frame machine, a measuring system,additional anchoring system, a silicone bronze welder, as-sorted tools, rivet guns, a dent puller and now an alu-minum welder. Montanez points out that all of thisequipment should have been purchased within the lastfour years or less.

Thats the easy part.What most shop owners dont want to hear, however, is

that the number one factor when it comes to equipment isquality. The unfortunate truth of the industry is that youget what you pay for. If a shop isnt willing to pay what isnecessary, the repairs made to the vehicle are going to besubpar.

You can buy a low-grade basic aluminum welder forunder $8,000, but its not going to give you the same typeof welds as a $12,000 - $16,000 welder, Montanez stresses.Everyone is being misled because theyre more worriedabout their pocketbooks.

Theres no question that the more you spend, the morevalue you get. This is especially true for equipment usedon aluminum repairs.

Almost any steel MAG welder can do the job on steelcomponents, as long as you adjust the settings properly,he explains. Thats just not the case for aluminumwelders. If you buy an aluminum welder that is approvedfor Ford, which is about $7,000 - $9,000, its not going to becertified for repairs on a Benz or Audi or any other Euro-pean OE. But if you spring for the aluminum welder ap-proved for the European OEs, even though its $12,000 -

$16,000, its going to fall under certifications to repair aFord.

Aside from a welder, one very standard piece of equipment that should be in every shop is a frame machine, a structural realignment/repair apparatus. Forthis, he suggests having a machine that is less than fiveyears old in your shop and that has either a universal jigsystem or specific jigs for each car. He stresses not to use amachine that grabs by the pinch weld clamps, as all European OEs dont allow pinchweld anchoring and manyof the Asian and American vehicles do not have thestrength in the pinchwelds to resist the applied force whenpulling.

The biggest piece of advice that Montanez has forshops is simple. Dont cut corners. While it is necessary tobe a business owner and make the most of your purchases, Montanez explains there is a certainpoint where these cost-cutting measures are justdownright irresponsible.

There are shops out there that arestill clipping cars, he says, citing thereason as a combination of being unin-formed and willfully stubborn aboutthe changing industry. So many shopsstay in their own little world. Theydont want to change and they dontwant to pay the price. Take, for exam-ple, the processes dealing with steelouter panels on BMW vehicles. You haveto glue and rivet those panels backon, even though BMW weld-bondedthem at the factory. Ive had guys tellme, I dont have the rivet gun, so Ivewelded it on. Thats wrong.

Every day in this business lays thechoice between what is right and whatis cost-effective, but what every shopowner must remember is this: The life ofthe customer is in your hands, and it isall your liability and no oneelses.

EQUIPMENT AND TOOLINGby Jacquelyn Bauman

neCeSSAryToolS,

neCeSSArySpending

MASSACHUSETTS



What pieces of equipmentshould every good shop have?

As a member of the Alliance of Automotive Service providers of Massachusetts (AASp/MA), i will abide by the associations bylaws and code ofethics. i understand that membership in AASp of Massachusetts is non-transferable, and i must remain current with my dues in order to be a member in good standing. i understand that if i discontinue my membership that i must immediately cease using any association promotions,logos or materials. Additionally, i understand that as part of my AASp of Massachusetts membership, i will receive New England Automotive Report, the official publication of AASp of Massachusetts, faxes, emails and other mailings.

2016 MEMBERSHIP APPLICATION

BUSINESS INFORMATION:

Mr. Mrs. Ms.Business Representative Name: ____________________________

Business Name ____________________________________________

MEMBERSHIP TYPE

REPAIRER MEMBER (check one)Collision Repair ShopMechanical Repair ShopBoth, Collision & Mechanical Repair ShopsOther Repair Shop

SUPPLIER/ASSOCIATE MEMBER (check one)Auto Paint/Crash Parts/Auto Parts/WholesalerEquipment/Tool SupplierManufacturer/Sales AgentServices (Computers, Software, Vehicle Rental, Other)

LIST OTHER SPECIALTIES ____________________________________

________________________________________________________

What benefits motivated you to join AASP of Massachusetts?

________________________________________________________

PERSONAL INFORMATION:

Name ____________________________________________________

Nickname ________________________________________________

ANNUAL MEMBERSHIP DUES (The AASP membership year is from January to January 2017)

$40/month $115/quarter $425/year - beST vAlUe!

NEW! Political Action Committee (PAC)Donation ...............$_____

Credit Card: Visa MasterCard

Card Number: __________________________________________

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Check or Cash

*** PLEASE TYPE OR PRINT LEGIBLY ***

12 post office Square, 6th Floor boston, MA 02109phone: (617) 574-0741 | Fax: (617) 695-0173|[email protected]

For oFFiCe USe onlyCheck number ______________________________Check date ________________________Check Amount ______________________________date Joined ______________________________Member number ______________________next bill date ______________________________

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Just like good tools and equipment, membership in AASP of Massachusetts is avaluable investment. AASP of Massachusetts works for you through

such outstanding programs as: (1) management and technical training; (2) discount uniform rental; and (3) a wide variety of other business services.

Put AASP of Massachusetts to work for you today. COMPLETE THE MEMBERSHIP APPLICATION AND

RETURN IT WITH PAYMENT TO AASP OF MASSACHUSETTS.

As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the associationare tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

MASSACHUSETTS



the entire insurance industry after all,fear is why people and companies buypolicies and insurers turn that fearagainst their vendors as well. Fearcauses irrational decision-making anddistorts pricing as well.

There was a high level of interac-tion with the audience, including several exchanges regarding legal issues. As the question-and-answersession wound down, many

participants expressed satisfaction withthe knowledge they gained at the semi-nar and were anxious to implement theproper practices in their own shops.The event ended with a preview ofnew seminars under development, thecompanys consulting services and ashort presentation of Superaresbranded marketing program, UltiSure,which will be released soon to theindustry.


Audi Group ....................................................17Axalta Coating Systems ..................................4Bald Hill Chrysler Jeep Dodge Ram..............8Balise Wholesale Parts Express ....................25Baystate Chrysler/Jeep/Dodge ..................43Bernardi Group ........................................28-29Best Chevrolet/Best CDJR..........................IFCBMW Group ..............................................22-23BMW/Mini of Warwick ................................27Clay Subaru ....................................................34Colonial Auto Group ....................................20Empire Auto Parts............................................9Enterprise ........................................................11First Chrysler-Dodge-Jeep-Ram ..................21First Ford ........................................................21First Hyundai..................................................21Ford Group ....................................................33Future Cure ....................................................30G&M New England LLC ..............................16Honda Group..................................................42Hyundai Group..............................................38Imperial Ford..................................................33Infiniti of Norwood........................................32Ira Group....................................................12-13Kelly Automotive Group............................IBCLinders, Inc. ..................................................54Long Automotive Group ..........................OBCMazda Group..................................................51Mopar Group..................................................35Nissan Group..................................................19PPG ....................................................................3Robertsons GMC Truck ................................10Sarat Ford-Lincoln ........................................43Sentry Group ..................................................39Subaru Group............................................48-49Tasca Group ......................................................6Toyota Group..................................................47Village Auto Group........................................31VW Group ......................................................52Wellesley Toyota/Scion ..................................9

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MASSACHUSETTS


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new england automotive report august 2015

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