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Tag Archives: automotive refinishing

Multi brand paint shop vs a single brand carrier

Those of you who have followed my blog for a while, probably know that I really like comparing how car refinishing industry vary from region to region. It is fascinating how different the business models could be in an industry, where precise (color) match is the main target. What is even more fascinating that there is no right way to do business either. Let me share with you my observations how the paint supplying stores operate in different countries.

Even in the English speaking markets, the name describing automotive paint selling shop differ. Factor, jobber, “paint guy”, distributor, paint warehouse, are just some of the business names I’ve stumbled upon in my career.

Putting the names aside, the look and products assortment usually has a similar pattern. Paint mixing scheme(s) put in the very center of the whole store. Plus a range of clears, fillers, primers, thinners, non-paint consumables, including abrasives, polishing compounds, sealants, aerosols, tapes, and at least basic equipment, like spray guns and sanders. While the number of different auxiliary products brands may vary, what is the main characteristic of a business is whether it carries one or more car paint brands.

Multi-brand store

If you walk into a paint store and your eyes catch more than one mixing schemes from competitive paint brands, then this shop can be considered as multi-brand.  It is important to recognize that the store carrying brands of the same group can hardly be described as multi-brand. For example, if the shop owner has PPG and MaxMeyer mixing systems, he or she probably follows some sort of a corporate strategy in the market. These paint systems could be complimentary. However, if you see Glasurit and Sikkens products side-by-side, than it is a distinctive example of a multi-brand paint supplier.

Pros and cons of multi-brand paint shop

Let’s have a look into the advantages of having more than one paint brand on the shelves. Firstly, if you have a number of paint systems, you can “play” with the approvals, which a particular brand has for certain car manufacturers. If your key customers “require” this or that paint brand because, then you can offer what they require. No need for expensive and lengthy presentations and trials. “You want Spieshecker, here you are”.

Secondly, in reality all paint systems have their strong and weak sides. I mean ALL. For example, X brand may perfectly match Japanese vehicles, while the brand Y does the Americans really well. Having multiple paint brands in store allows a store owner to be flexible.

Thirdly, with multiple brands at your hands, you may cover different customers, based on their price sensitivity.  If a certain customer sprays old cars and have a lot of overall refinishing jobs, then a more economic paint may do the job. There is no need for a high-end, premium paint in this case.

Last, but not the least, the multi-brand store is truly independent business. The owner has more choices and freedom to steer his business towards more profitable solution.

If all the above sound too good to be true, I bring to your attention some drawbacks of having multiple paint brands in your store. The main disadvantage is that no paint producer will view you as 100% partner. There will be always some moaning involved. Usually paint companies will not bring you ready customers to serve, and technical and financial support will be limited.

Single brand shop

On the other side, a paint-supplying store with the only one paint brand (group) inside, can be described as a single brand shop. Often, this kind of business is called, unofficially, by the name of paint brand. Sikkens shop, Standox stocker, Axalta jobber, Glasurit guy, etc. Besides being identified as a famous brand, carrying a single paint system has also a number of benefits. Firstly, you enjoy a full support and area protection from the paint producer. Secondly, often a “mother” company brings you good customers to serve. Literally. Thirdly, stock management is much easier. Less stock, means less frozen money. Sounds great to me! Nevertheless, don’t jump into conclusion so fast. What if the idealistic relationship may stagger? You may loose a key supplier overnight. What if your preferred paint supplier is too expensive or weak in certain important aspects? What if your paint supplier decides to leave your market? Yes, it happened in the not-so-distant past. No jokes.

Conclusion

As you realized, both strategies have strong advantages and potentially dangerous disadvantages. I usually do not advocate for any particular way of doing business. Your decision though should be based solely on your own interests. Don’t be trapped by any sales manager, however capable he is. The managers come and go, while your business is here to stay…

 

If you want to have a successful car repair garage, this is the most important trait you must have.

Last week I had a minor health issue, and I had to visit the on-duty hospital during the night. I will skip all the hassle and long waiting in the Greek state hospital. It is awful. It is worth writing about, but not in Etalon Refinish Blog. However, while waiting in an uncomfortable chair for my turn to see the doctor, I realized that there is a similarity between health care providers and automotive repair professionals. But how?

From my point of view, the feelings we experience when we get sick or have an accident with our car, are very similar by nature. These feelings are sadness, distress, anxiety, disappointment and extreme discomfort. In both cases, a person seeks for understanding, quick relief of the pain and, most importantly, for compassion. The very nature of the collision repair business is closely related to negative events and accidents. Nobody likes to have an accident, even if nobody is heart; the view of a crashed vehicle is very unpleasant itself. Right?

In the relation to the above-said, I can conclude that if a car repair business owner wants to be successful, he or she needs to show his understanding of the customer’s feelings. He must express compassion and willingness to guide the customer through this negative experience quickly and as hassle-free as possible. There are many ways to do this. For example, a bodyshop could offer a courtesy car, help to complete the paper works with the insurer, or simply spend a few minutes listening to what the customer has to say. Being compassionate will always pay back with the returning loyal customers and good referrals. Recently, I stumbled upon an ad, where the bodyshop owner was offering a 15% discount for those customers who had to pay the damage from their pocket. In fact, any small move, like the above, will count.

To summarize, I would like to stress one more time that understanding the customers’ feelings are of utmost importance for any business, especially for the people involved in customer service in difficult life situations. About six years ago, I wrote an article with the name “4 things a car painter and a doctor have in common”, but I could add now another thing – a good doctor and a car painter both must be compassionate…

 

UV or not UV?

Those of you, my dear readers, who have taken part in a trade fair as an exhibitor, know how exhausting it could be. However, trade fairs are still the best way to meet new people, catch up with colleagues and learn new things about your industry. Today, when the Collision Repair Expo in Melbourne closed its doors, I look back and think, apart from meeting new and old friends and colleagues on this fair, I definitely take with me the understanding of one future defining technology – UV curing coatings.

While UV technology is not something completely new to the collision repair industry, yet it is now, when all the major automotive paint producers actively market it. During the last three days in the Melbourne Exhibition Center I had an opportunity to get some deeper knowledge of the UV-curing products’ advantages over the conventional 2K coatings, and the challenges, which follow this trend.

Some of you may ask the question: ”Why do the major players in the automotive refinishing industry start marketing UV-cured products now?” Well, benefits of such materials have been known before – ultra fast drying, zero sinking (shrinkage), no heat curing (great for sensitive areas), one component materials (no hardeners required). Yet, what are the challenges? Is adopting UV technology an easy ride? There are a few obstacles though – high initial investment in equipment, products cost (UV materials are expensive) and resistance to change from the painters, when especially the benefits are questionable. Let me analyze what I mean.

Initial investment

One of the largest obstacles for any new technology is the cost and complexity of the associated equipment involved. On this direction I can clearly see some development for last couple of years. For example, I saw some new players entering UV-curing equipment, like the UV-curing brand Lihtan. Australian designed Lihtan brand attracted many visitors in Melbourne Collision Repair Expo this month. Milton Da Silva – cofounder of Lihtan – told me during our conversation in Melbourne that the interest for the UV technology is at its pick; this is why he works closely with all major paint brands to offer affordable and reliable UV light systems. Already many premium automotive coatings manufacturers approved Lihtan UV equipment (www.lihtanuv-a.com). It goes without saying that the more manufacturers of the related equipment appear, the better.

Cost of UV materials

This is probably one of the most important obstacles at the moment. With an aerosol UV primer retailed at more than 70 Euro per can, these products could hardly be described as affordable. What the suppliers of UV-cured materials need to do first – is to explain really well and in details how an ordinary bodyshop will benefit while paying such a high price. One could really claim, for example, that difference in drying time is not that big to justify the premium paid. If, on average, with IR lamp a spot primer would dry in 6-7 minutes, a UV primer would require about 2-3 minutes. Is the 4-5 minutes difference serious enough argument? The question should be answered by each sales rep selling UV stuff. On the other hand, if the UV technology really takes off, manufacturers will achieve economies of scale, and the prices may go down. Time will tell.

Resistance to change

By nature, a human being is reluctant to leave his comfort zone. This applies to all aspects of our life, including our work life. Therefore UV technology will have to go through painters’ and shop owners’ hyper-criticism, skepticism and doubt. However, there is nothing new here. Waterborne paints were met with a lot of criticism too, and now more and more collision repair shops switch to “water”.

I am sure that UV-curing materials will find their place in modern bodyshops only if the paint producers will explain and communicate legitimate, not just on PowerPoint slides, benefits for both painters and business owners. Those benefits must outbalance the expenses and costs of the materials for most of the bodyshops out there, and not only for the very top ones. Only if an average smash repair store profits by the novelty, we would be able to say with assurance that UV-cured technology found its place in the sun…

 

 

Automotive Paint Supply Shop’s Alternative Paths

The best way to avoid business downfalls is to be proactive. It is just like with our health. Your doctor probably told you that it is much easier and cheaper to treat your body and mind as top priority than to deal with illnesses piled due to bad habits and negligence. Well, business health is no exemption. If you run a shop or a warehouse for automotive collision repair industry, this article is for you.

Threats of the industry

Paint supply in the automotive refinishing industry is a mature and saturated industry. In most of the parts of the world, it grows at a rather moderate pace, and, therefore, doing business becomes more and more difficult. Competition is very high and profits are shrinking. Additionally, international groups buy one shop after another. Consolidation is ruthless and imminent threat to the independent body and paint suppliers. In parallel, supplying automotive paint requires more investment in training, expensive equipment and fine-tuned stock management. Thus, regardless of what state your market is in now, it would be wise to safeguard your future by not putting all the eggs in the same basket. I strongly advice to broaden your products offering and enter one or more from the below mentioned industries.

Industrial paints

Probably the closest product range to automotive paints are the industrial paint systems. Usually the automotive coatings producers can supply mix systems for the light industry as well. Additionally, if you trade automotive paint, then it will not be a big issue to master the niceties of any industrial coating system. However, what is the target market for the industrial coatings? You will be pleasantly surprised how many potential customers are out there. Agricultural machinery, metal construction workshops, various machine shops, sign makers, contractors, you name it. Examples of such mixing systems are Selemix (PPG), Lechsys (Lechler), Ivat, Alcea, Rembrandtin (Helios) and many others. Imagine that with a good industrial mixing scheme you have a mini paints factory at your disposal. Just change binders…

Marine and yachting coatings

If you are lucky to live by the sea, ocean, river or a big lake, then there is a great chance to offer marine and yachting coatings. Whether it is a small fiberglass boat, sailing boat, commercial ship or a mega yacht, they must be protected, refurbished and maintained. The scope of the products include antifouling paints, epoxy primers, topcoats, cleaners, polishes and a great deal of the auxiliary products. Keep in mind that sometimes there is seasonality factor in this industry.

Furniture and wood coatings

It doesn’t matter which country you are in, there are always furniture factories somewhere close to you. Believe it or not, but wooden tables and chairs are painted in a similar way with the car. A painter needs abrasives, spray guns, masking tapes, personal protection products and coatings of course. Even if you decide not to invest in a stock of wood and furniture coatings, there is still a great number of consumables you could sell to this market.

Detailing products and car wash supplies

Detailing shops spring up like mushrooms after the rain all over the place. As people get more educated how to protect their vehicles’ appearance, the demand for the detailing products is growing. Among the products you probably already have on your shelves are polishing compounds, pads, microfiber wipes and polishing machines. Earn new customers by adding shampoos, dressings, washing machines and greater variety of the cleaning products, and you will see your sales growing from the completely different customers pool of hobbyist and professionals.

DIY and construction paints

I have seen many customers of mine, who grew up their range to a full size hardware store with paints, tools and accessories needed for any household. It is a big move, I must admit, because the whole philosophy of the store will must be altered. Selling automotive paints is primarily a B2B business model, while a hardware store carries a big variety of the goods aimed to the non-professional customers or B2C. It is very important to understand the difference. On the other hand, if the collision repair business is declining, then it is a one-way road to enlarge your offerings and target much bigger customer base.

Conclusion

I strongly believe that any entrepreneur should keep his or her eyes open for the new opportunities. The above-mentioned list is not an exhaustive one, of course. There could be many more other related or completely unrelated industries one could consider. The main takeaway from this humble article is that it is much better to stay tuned for an additional revenue, and, who knows, it may turn out a saving vest in difficult times.

Spray gun vs iPhone. What a dilemma.

This blog post is not about the new technology in automotive repair industry, nor about its challenges or best practices. This post is about a crisis we definitely have in our industry. This is the human resource crisis. No matter how precise the color matching is, or how fast clearcoats dry, if we don’t have skilled, motivated and proud painters, the industry’s future is not bright. In fact, this post blog comes as a continuation of one of my recent articles “The biggest challenge in the collision repair is to keep it young.”

Just last week we had a round of presentations of new Devilbiss spray gun DV1 on the field. Usually I enjoy this part of my job. What can be better than a direct, unfiltered contact with the end users of your products? While the presentations were “business as usual” , one encounter left me very concerned and in doubt.

My sales manager and I visited a very typical for Greece bodyshop. Average size, family owned workshop of three people. The painter was actually the owner’s son, and the next generation of the business. After initial formalities and casual chat, I asked the young guy about his spaying equipment arsenal. It turned out that he is using two spray guns for basecoat and clearcoat applications. One was a Devilbiss GTI – the very first model of the iconic blue spray gun by the British manufacturer. The other piece was a SATA 2000 model. Both spray guns were purchased many years ago by the painter’s father, and they have obviously seen better days. Looks like a good potential customer, you may think. I thought the same exact thing. However, the youngster looked very indifferent and reluctantly asked for the price. The average retail price for a premium spray gun, regardless of the brand is slightly above 700 Euro in our part of the world. If you take in account that with a quality piece of equipment like Devilbiss DV1 or SATA Jet 5500 (I don’t mention other brands, but the list is not all-comprehensive) one could save massively on materials consumption, improve color matching on difficult metallic colors and decrease re-works, purchasing such gun is a no-brainer. Well, for me at least. However, my prospect customer had a different opinion.

“That is too expensive”, he replied indifferently and took a brand new iPhone XS Max out of his pocket. He started clicking through some Viber messages and turned his back to us. Our pitch came to an end.

En route back to my office I was thinking a great deal about this young man. I wasn’t thinking about the rejection. No. If you are in sales, you know that rejection is just a part of everyday life. What stroke me most is that the “professional” painter didn’t show any interest for something new in his industry. It wasn’t the question of money, of course. Someone who can afford buying an expensive gadget worth about 1300 Euro, can afford investing in his job. Unlike pricy phone, the last technology spray gun (or any other piece of equipment) will earn him money. The problem is that investment in his work is not something he wishes to do, and it is important to distinguish between investment and pure expenses. Purchasing a piece of equipment is definitely an investment. Buying a new phone, unless you are mobile app developer, is an expanse.

To conclude, I would like to say that there are people in our industry who struggle to make both ends meet. Probably not everyone, especially in crisis-hit Greece, can buy a DV1 or similar spray gun. However, a serious sprayer would rather save money for a gun, rather than for a phone. This is my humble opinion.Chances are that this bodyshop will not survive until the next generation, unless the owner changes his attitude.

 

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