Case Study: Carsmetics

"RepairCenter provides consistency across all our stores. Our managers can go from store to store and look at the system and immediately know exactly what's going on within a few minutes.

"We now have better control of our cash flowbetter than we've ever hadbecause it's so easy to manage accounts receivables on a daily basis."

If you cut your finger and need stitches, you don't necessarily need treatment at a full-scale hospital; you just need a quick trip to an outpatient clinic. That's the premise behind Carsmetics. If you bump your car and have a minor drivable repair, you take it to Carsmetics Express Accident Repair.

"The MultiShop Analytics feature is a must for anyone who has multiple locations."

It's a business model that has definitely caught on. Carsmetics has locations across Florida, California, and Georgia and continues to grow. With such a dynamic organization, the company relies on Mitchell RepairCenter to keep its operations running smoothly. "We really lean on RepairCenter to schedule people, manage parts, track sales, and control expenses," said Joe Coverdill, Chief Operating Officer and Chief Financial Officer for Carsmetics. "It's critical to have a system like predominantly from customers versus insurance claims. This may not be a recipe for success for a typical collision repair business, but Carsmetics is not typical. Some noticeable aspects set them apartlike providing customers with exact quotes (not estimates), offering an "absolute" lifetime warranty, and allowing customers not to pay until they are completely satisfied. With annual revenue above the industry average per location, Carsmetics executes a high volume of repairs with a quick turnaround. Most repairs are completed in less than two days.

Joe says that a big part of their success is due to the efficiency they have achieved through standardizing operations and accounting processes. "RepairCenter provides consistency across all our stores. Our managers RepairCenter because we have a limited staff and are doing so many different repairs any given day."

Carsmetics has been in business since 1997 when founder Stephen Dunn discovered a minor ding in his brand new car. He took it back to the dealer and was amazed when it was returned in pristine condition in a matter of minutes. That sparked the idea for a collision repair company specializing in minor damage that generally falls below the insurance deductible amount.

Picture this: the average repair at Carsmetics is about $600, they have no DRP business, and revenue comes predominantly from customers versus insurance claims. This may not be a recipe for success for a typical collision repair business, but Carsmetics is not typical. Some noticeable aspects set them apartlike providing customers with exact quotes (not estimates), offering an absolute lifetime warranty, and allowing customers not to pay until they are completely satisfied. With annual revenue above the industry average per location, Carsmetics executes a high volume of repairs with a quick turnaround. Most repairs are completed in less than two days.

Joe says that a big part of their success is due to the efficiency they have achieved through standardizing operations and accounting processes. RepairCenter provides consistency across all our stores. Our managers can toggle from store to store and look at the system and immediately know exactly what's going. Having that consistency at every location gives us the ability to get up to speed quickly and be MUCH more efficient."

Being as lean as possible is the "Holy Grail" for all collision repair facilities, and multi-shop operations have special requirements and challenges in this area. "With RepairCenter, we run a much leaner operation," says Joe. "We can handle more repairs in a shop with a smaller team on the front and back ends. Some of our busier locations used to have three-man teams, but we've been able to scale back to two-man teams across our organization. We also have more time to focus on sales and following up with people who don't close on the first visit. Opportunities can be handled quickly and more efficiently with a lot less paperwork."

Joe also emphasizes how the RepairCenter reporting and analytics features help the Carsmetics team be more efficient. "We don't need to look at one store at a time. We can view results for all locations in one report or break it down by regions. Being able to switch between shops quickly and easily saves so much time. The multi-store analytics feature is a must for anyone who has multiple locations."

Because RepairCenter is a hosted solution, built on an open platform, Carsmetics has also saved money by reducing IT expenses. "With RepairCenter you don't need an elaborate network like you do with other systems. We no longer need outside consultants or expensive computer network systems," says Joe.

RepairCenter really performs for Carsmetics when it comes to managing the accounting end of the business. As the CFO, Joe especially appreciates this capability. "We now have better control of our cash flowbetter than we've ever hadbecause it's so easy to manage accounts receivables on a daily basis. We're able to close books for the prior month faster than ever, and weekly income statements are a snap, too, even with a small accounting staff. We were amazed at how quick and easy it was to integrate with QuickBookswe no longer have to spend money on an outside consultant. No other management system offers such a deep integration with the accounting system."

10/21/10