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Bussiness Side of ADAS – Part 2 [THA 182]

David Friend is the owner of Mobile Tech and Wilmington Hybrids, from Wilmington, NC  David has two locations. an ADAS Calibration shop and teaches ADAS calibration in his dedicated training center. Listen to David’s previous episodes HERE.

Matt Lachowitzer is a husband, father of 3, avid Minnesota Vikings fan, and owner and founder of Matt’s Automotive Service Center. A Herman, MN native, Matt started this company as a two-bay shop back in 2009. He has expanded the company into 6 locations with beautiful, state of the art facilities all over the Fargo-Moorhead area. Matt enjoys being a pillar in the community, giving back in any way he can, and providing knowledge and education in the biggest ways possible. As a result of being a continuous educator and an amazing pillar in the community, Matt won Entrepreneur of the Year in 2015 through the Fargo-Moorhead West Fargo Chamber of Commerce. When Matt’s not working, he enjoys fishing, riding ATV’s, watching football, and traveling with his family. Check Matt’s other episodesHERE.

Jim Carpenter is the owner of Quality Auto Body.

Key Talking Points:

  • Part 1 was Town Hall Academy 138. Link Here
  • ADAS calibrations require a continual investment is newer equipment
  • You may not be able to work on every single make or model
  • Aftermarket equipment is a compliment to OE tooling
    • This is yet to be an exact science but OE tooling is best to lean on
  • Get paid for your investment. Get your pricing that includes your investment in facility, tooling and equipment
  • Insurance companies make their money by not paying out. A body shop problem getting paid or their money worth for ADAS calibration
  • Every make/model is different. Chevy vs Audi will require more time and different equipment. Charging the same for a Chevy vs an Audi will not make you any money.
  • Insurance companies see no value in training, certifications. Too many want it done cheap and fast to get their client out of a rental. There is a safety factor here. You need to consider a moral factor to do the job right.
  • You need to know where to get OE service information
  • You must want to understand technology in order to do calibrations.
  • You need to read and comprehend. It takes math and science to do a good calibrations
  • Markets will not bear an ADAS Calibration shop on every corner
  • You need to research how many ADAS Calibration shops in your market
  • You will need to develop a business plan to you can see the return on investment over time
  • Promoting your new calibration center will require door to door, flyers and even a campaign into the marketplace. Promote your new services to glass shops a great source of work.
    • Just because the post-scan is good doesn’t mean the ADAS component of the vehicle is fully functional
  • Consider if the vehicle is not drivable there will be a tow involved to bring it to your shop
  • A big responsibility is to be sure the vehicle is functioning 100% within spec. It needs to behave properly when it leaves your shop.
  • Moving forward David feels the OEs need to help us verify if the vehicle is fully functional after calibration. Full autonomous will require that.
  • Access to information for ADAS calibration will be important to the future of calibrations
  • You need the right type of environment for a calibration center
  • Matt purchased a new facility to create his ADAS calibration center and put it under a separate entity
    • He is looking for opportunities from body shops, small dealers and mechanical shops that require calibrations
    • He is offering pick up and delivery services
  • David says there are some great aftermarket tooling however he cautions that nothing will replace OEM
  • David holds ADAS training and recommends paying to get OE service information
  • Insurance companies are squeezing all aspects of the repair process. They are also crunching ADAS calibration costs to providers
  • When calibration isn’t rooted in a collision, you must get the correct price based on individual time and equipment invested.
  • Is menu pricing is used you may lose money
  • Insurance company denies and you’ll need to defend your price
  • Technical service bulletins need to be reviewed. Matt hears that at the OE level there are challenges in ADAS systems working or shutting down. Still in the twilight of ADAS calibration
  • David believes that a pre-scan should include a pre-inspection
  • The brake system is no longer just a brake system it is part of an entire system that needs to play nice with all other components like ADAS. Every sensor can lead to the braking system
  • Invest in training of your people
  • Depending on the state, the person who gives the keys to the vehicle owner is on the hook for the safety of the vehicle
  • An ADAS equipped car saved David’s life because it did what it was designed to do. Repairing a vehicle, by getting the ADAS system re-calibrated has given him a new perspective. Don’t cut corners.

Resources:

  • A special thanks to David Friend, Matt Lachowitzer, and Jim Carpenter for their contribution to the aftermarket.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP’s HERE
  • Find every podcast episode HERE.
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  • Love what we do? Buy Carm a cup of coffee HERE.

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About the author, Carm Capriotto, AAP

Carm is the founder and host of the Remarkable Results Radio Podcast; the only one of its type in the automotive aftermarket. Carm calls on his 35 years’ experience in the aftermarket to bring engaging stories from his guests.

Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.

As host, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ path to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.

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