Fixed Ops Journal - October 2022 - F8

FIXED OPS JOURNAL
Capital
 Top 50 dealership groups
based on 2021 body shop
revenue I PAGE 30 I
investments in new
equipment and
extensive training
in the era of
electric vehicles
and advanced
driver-assistance
systems are rising.
HOLD OR FOLD?
The profi t potential for the collision repair business is huge
RICHARD TRUETT
rtruett@crain.com
W
hen Baxter Auto Group of
Omaha, Neb., realized it
could not run its collision
repair business as profi tably
as local independent competitors,
the company, with 15 stores in three
states, sold its three body shops.
Conversely, the managers at Bowman Chevrolet,
just north of Detroit in Clarkston, Mich.,
evaluated every part of their store's collision
repair business then decided to invest in
growing it.
When it comes to playing their cards with
body shops, dealers face more choices than
just hold 'em or fold 'em.
A marriage of convenience
Th ough Baxter no longer fi xes accidentdamaged
vehicles, it still has a winning hand
in the collision repair business. Th e company
is making more money than ever from collision
repair in an arrangement that just may be
PAGE 8 OCTOBER 2022
the template for dealers struggling to operate
their own shops.
Baxter sold a majority stake in its collision
repair business to a local rival and now de "
" Our
customers know
that if they get into an
accident, they can call
somebody they know and
trust. They've built a
relationship with their
salesperson and their
service adviser, who'll get
them into the body shop. "
Rhonda Jensen, general manager,
Bowman Chevrolet
rives profi ts selling repair parts from its former
shops. It also frequently provides technicians
to carry out complex repairs and calibrations
to work on advanced electronics.
" One of our largest wholesale customers in
town is an outfi t called B Street Auto Body, "
Kevin Quinn, Baxter CFO, told Fixed Ops Journal.
" We've known the family for years and
they have wanted to buy our body shops for
years. We said, 'We don't want to sell. We'll
buy your body shops,' because that's the typical
dealer ego, right?
" We fi nally agreed to combine our entities.
Th ey know how to run body shops. Th ey know
how to get that throughput and meet customer
expectations to deliver that experience we
just couldn't. "
Money to be made
It's easy to see why dealers such as Bowman
are doubling down and staying in the collision
repair business. Th e profi t potential is huge.
Th e average insurance company-paid repair
ticket in 2021 rose for the 12th straight year, to
"

Fixed Ops Journal - October 2022

Table of Contents for the Digital Edition of Fixed Ops Journal - October 2022

Fixed Ops Journal - October 2022 - Intro
Fixed Ops Journal - October 2022 - F1
Fixed Ops Journal - October 2022 - F2
Fixed Ops Journal - October 2022 - F3
Fixed Ops Journal - October 2022 - F4
Fixed Ops Journal - October 2022 - F5
Fixed Ops Journal - October 2022 - F6
Fixed Ops Journal - October 2022 - F7
Fixed Ops Journal - October 2022 - F8
Fixed Ops Journal - October 2022 - F9
Fixed Ops Journal - October 2022 - F10
Fixed Ops Journal - October 2022 - F11
Fixed Ops Journal - October 2022 - F12
Fixed Ops Journal - October 2022 - F13
Fixed Ops Journal - October 2022 - F14
Fixed Ops Journal - October 2022 - F15
Fixed Ops Journal - October 2022 - F16
Fixed Ops Journal - October 2022 - F17
Fixed Ops Journal - October 2022 - F18
Fixed Ops Journal - October 2022 - F19
Fixed Ops Journal - October 2022 - F20
Fixed Ops Journal - October 2022 - F21
Fixed Ops Journal - October 2022 - F22
Fixed Ops Journal - October 2022 - F23
Fixed Ops Journal - October 2022 - F24
Fixed Ops Journal - October 2022 - F25
Fixed Ops Journal - October 2022 - F26
Fixed Ops Journal - October 2022 - F27
Fixed Ops Journal - October 2022 - F28
Fixed Ops Journal - October 2022 - F29
Fixed Ops Journal - October 2022 - F30
Fixed Ops Journal - October 2022 - F31
Fixed Ops Journal - October 2022 - F32
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