America s Most Recommended!

Transcription

1 America s Most Recommended!

2 Agenda 1. Augmenting your dealership business with collision repair it could mean a nice contribution to your bottom line 2. About ABRA 3. How ABRA is successful in the collision repair business: Consistent Brand Operations Information Technology Industry Relations & National Marketing Purchasing Power 4. How to successfully integrate collision repair into your dealership business 5. ABRA Franchise can be an option 6. Questions 2

3 ABOUT ABRA 3

4 Through the Years In 1987, ABRA launched a franchise program to promote accelerated growth through developing successful business partners. Within two years, ABRA s numbers had grown to eleven locations in multiple states. By 1992, paintless dent removal (PDR) had been perfected to the point that ABRA could offer it as a viable alternative for low cost repairs involving dings and dents. Co-founded in 1984 by Rollie Benjamin in Fridley, MN. Conveniently located in an upscale, multi-tenant commercial development, this attractive facility featured modern high-tech equipment, a highly trained staff, and a clean, customer-friendly environment. With a large portion of today s vehicle structure being glass, ABRA began adding certified glass installers to the staffing of its collision repair centers in ABRA Auto Body & Glass now includes full-service mobile auto glass replacement and windshield chip repair. In 2000, ABRA began operating an in-house 24/7 Contact Center By calling one toll-free number (1.888.USA.ABRA), a customer can schedule an appointment at any of our repair centers, arrange for a tow and or a rental vehicle if needed. Today, ABRA operates 107 repair centers in twelve states, 75 of which are corporate owned and 32 franchises. Our growth plan is through acquisitions or newly developed centers in our major markets, and franchise development in smaller markets within the states we currently serve. 4

5 Historical Revenue Trend

6 ABRA Locations Arizona Colorado Georgia Iowa Minnesota Mississippi North Carolina North Dakota South Dakota Tennessee Utah Wisconsin 6

7 Our Prototype Center ABRA s prototype centers are 13,000 or 18,000 sq. ft. state-of-theart repair centers 7

8 The Building Design Faribault, MN We can also convert most existing buildings into ABRA collision repair centers, and offer layout and design consultation Brooklyn Park, MN 8

9 What is Success? At ABRA, we view success not as a result but rather a process. A process that focuses on Operational Excellence to improve Key Performance Indicators (KPIs). 9

10 ABRA s Strategic Business Model Talent Development FSA Operational Excellence FSA Collision LOB Glass LOB Franchise LOB Sales & Marketing FSA 10

11 What is Operational Excellence? Operational Excellence focuses on reducing waste Through Problem Solving What is waste? We must think of collision repair as a re-manufacturing business (focus on throughput improvement) Getting to the root cause of problems while engaging all team members in identifying solutions What is the problem with problem solving? Utilizing Visual Management Make your work and the status of that work visual so opportunities are easy to identify (parts verification, quality process, cycle time delays, etc.) Creating Consistency Variation kills efficiency! Core processes - critical regardless of circumstances 11

12 Benefits of Embracing OpEx More referral business Predictable KPIs Reduced Loss Adjustment Expense (LAE) Consistently high CSI (communication & return rate) Lower Cycle Time (Length of Rental - LOR) Increased profits Leverage overhead Improve margins 12

13 ABRA National Programs Cycle Time (LOR) Trend (February) Feb-11 ABRA Industry 13

14 ABRA Customer Service Trend (February) CSi Complete 14

15 INFORMATION TECHNOLOGY 15

16 Technology Infrastructure ABRA Proprietary Data Warehouse Windshield View Information is gathered in real-time from Pathways, Audatex, Ultramate, Kronos, ABSe, and CSiComplete Eliminates the need for manually-created reports Pushes KPI reports daily to repair centers and district managers Real-time access on SharePoint intranet site Provides exception reporting/alerts to help pinpoint performance opportunities Provides insurance-based reporting Feeds other applications (for example, call center, time tracking) to eliminate double entry 16

17 Technology Infrastructure cont. ABRA ABS-Enterprise (ABSe) Management System Manages various aspects of our repair business Provides a system for job costing each repair Accurately compares ABRA repair center to other ABRA repair centers; for example, Gross profit Mix of business Closing ratios KPIs are reviewed with ABRA corporate and franchise district managers to improve our business 17

18 Why ABRA? ABSe and ABRA s proprietary data warehouse reporting provide a complete management system that allows me to see at a glance how my business is operating, whether I m at the repair center or an offsite location. It also allows for great coaching opportunities when I can compare how my center operates vs. other ABRA locations. Unless you have something to compare your KPIs to, you really don t know if you re hitting the right targets or not. Scott Stedman ABRA-Rochester, MN 18

19 OPERATIONS 19

20 Changing Culture - Visual SOP s 20

21 Self Audit and Centralized Audit Central audit 21

22 ABRA s Process Compliance Op Ex Evaluation Evaluations performed by ABRA Corporate and Franchise District Managers, and reviewed with repair center General Managers Verifying process compliance in front office (scheduling, Pre- Op, parts procurement, DRP compliance), and production (organized workplace, repair quality, inspection before paint prep, after paint and at vehicle delivery) 22

23 Why ABRA? I was thinking of opening an independent center, but realized ABRA offers so much to its franchisees. They have been perfecting their operating procedures for 19 years, and have an excellent reputation with the insurance industry. I feel that these benefits, coupled with our great location and state-of-the-art equipment, give us a solid base on which to build a thriving business. Mike DeBoer, Owner - ABRA Duluth, MN 23

24 INDUSTRY RELATIONS and NATIONAL MARKETING 24

25 DRP Relationships ABRA vs. Industry Average CCC DRP relationships

26 Industry Relations - DRPs At ABRA, 77.4% of our total revenue comes from our Top 14 insurance accounts. What could this mean for you? Assuming $2,000,000 in sales, $1,550,000 could come from insurance partners *Based on information from ABRA s data warehouse, January-December,

27 ABRA Auto Body & Glass Key Performance Indicators 4th Quarter 2009 Market: Georgia Column 2 highlighted in gray shows T3M industry data measured by CCC. Column 3 is length of rental data measured by Enterprise Rent-A-Car. Column 4 is customer survey data measured by CSiComplete. ABRA repaired data is information based on T3M data from ABRA s data warehouse; columns 1-2 are market & insurance company specific; columns 3-4 are market specific # Estimates / Repaired Average Severity Length of Rental (LOR) CSI 0-10 CCC Estimate Data ABRA Repaired Data N/A $2, $2,

28 Cost Containment Driven by Parts Utilization Alternative Parts Mix 28

29 Cost Containment Driven by Repair Labor Repair % of Sheet Metal 29

30 National Marketing National Marketing Staff Insurance Relations Continuing Education (for ABRA s insurance partners) Collateral and Promotional Pieces Advertising Public Relations Contact Center 30

31 National Marketing cont. What does this mean to you? A national marketing budget of over $1.9 million for a contribution of 0.6%* of revenue (based on $2.0 million in sales = $12,000) *Current contribution level 31

32 Why ABRA? ABRA s relationships with insurance partners open more doors for me than I could ever do on my own. Mike Brown, Owner ABRA Faribault, MN 32

33 PURCHASING POWER 33

34 National Purchasing Power Leveraged Volume Purchasing To Help Reduce Costs Paint & Materials (including discounted safety training and hazardous waste removal) Glass Purchases and Materials Equipment Rental Cars Software (including CCC, ABSe, AllData, estimating systems) Parts 34

35 Why ABRA? ABRA s purchasing power gives me an edge that s hard for our competitors to match. Not only can we take advantage of the pricing offered as part of a large MSO, but we know what parts discounts other ABRA locations are getting, so we can use that information to negotiate with the vendors we purchase from. Keith Clingan - ABRA-Chattanooga, TN 35

36 ABRA Franchise Value Proposition Financially solid with 25 years experience Operational Excellence Industry-leading KPIs Information Technology Proprietary Data Warehouse Reporting Industry Relations & National Marketing Exceptional insurance relationships Advertising, Public Relations, 24/7 Contact Center National Purchasing Power Savings on equipment, paint, software, parts discounts 36

37 QUESTIONS? 37