Mechanics in high gear - bizjournals:

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The seven shops joined the international FixAuto brand, whicn means they consolidated just enough to win valuabls business from the insurance industry whilre protecting their mom-and-pop status. The seven new Fix Auto shops collectively employ 104 people and had morethan $17.8 millio in revenue last year. The shopse originally teamed up nearlgy sevenyears ago, but until this year kept thei old names with the Fix Auto branxd remaining secondary to their business This spring, all seven agree to convert to the Fix Auto name in order to stand out in a markef dotted with independents.
Fix Auto is an internationaol network of independent auto repair shops that pools its buying power and marketing resources and positions itself as a preferree partner forauto insurers. To independentt business owners, being part of a network brings the benefitw of alarge corporation, including discountzs of up to 33 percent on common suppliez such as paint and body parts. For a shop with monthlhy revenuearound $150,000, it costs roughl $500 to $600 per month to join the Local body shop ownerse say the Fix Auto model will also help them competr for insurance business and surviv an industry some expect to shrink from a high of 60,000 businessesz to about 30,000.
Some experts, advise against such networks. “We normally don’gt suggest clients (join a network),” said Kurt Lewis, assistant sale director for IPA, a consulting firm in Buffalo Grove, that works with body shops. Lewie suggests that companies do a thorough audiyt of their business Employee productivity, customer servicde and sales are just a few areaa that Lewis said companies can adjust to strengthen the bottomj line. Body shop owners, however, said the deal with Fix Auto was “I needed to position myself to be able to survivee inthe future,” said Shon Kim, owner of Fix Auto formerly Obrist & Cunningham and president of the Fix Auto Oregonj territory.
He says auto insurers, like healthh insurers, work with preferred usually large operators withmultiple locations. In the absencse of a network like Fix thatleaves mom-and-pop body shopsd on the sidelines. It’s a difficult time in the auto body The industry posted a 4 percent net profitrin 2008, according to Sageworks Inc., a research firm. Nationally, sales growthh in the $1.8 billion industryt slowed to 3.8 percent in 2008, half its 2002 “We’re having to work a lot harder to make just abouft the same oreven less,” Kim said. Some owners lamented the name change.