A given in the repair industry is that the world of vehicle electronics keeps changing. With change, new challenges reveal themselves in the automotive repair industry every day that reshape how we look at vehicles and repair them. This is not only apparent in the collision and auto glass industries but also mechanical and trucking/transportation.
New electronics are being added to vehicles with every new model year. On top of these new systems, the electronic companies designing all of these systems are adding to the ADAS features and updating or improving current systems and components. The vehicles today have moved more toward computers with wheels than any of us anticipated. The change and need for services to the suite of electronics in vehicles today have rapidly brought about a need for new types of technicians and service companies inside the automotive repair industry. Many entrepreneurs have started new companies to service a growing industry that many believe has limitless growth potential.
It’s not all roses for those companies that have started businesses or added to their business services to address electronic repairs such as programming, coding and calibrations as well as harness repairs and replacements. The variables and considerations when entering into this business are complex and daunting. Those who think that buying a scan tool and some targets puts them in the vehicle electronics repair business need a reality check.
This article will give you a start, but there is way more to learn. I’m no expert on the laws of your state, but there are many things you’ll need to know regarding taxes, licensing, payroll and more. What I can do is offer you some insight into what companies today are doing and what it will take to enter the market from a technical perspective.
Know Your Customer
No matter what the business you’re in, if you’re looking to start a company, you need to know your customer. What do your customers need (in this case, we mean auto body shops because they will be your customers), and how do you become a good partner to them? Then, break it down for every shop you will have as a customer. Learn what vehicles they’ll need serviced and what equipment you’ll need, as you’ll need to provide services for the majority of vehicles your customers repair. And do not forget the older vehicles as these systems have been around for a minute or two and multiple software and VCIs may be needed just for one vehicle manufacturer.
In this industry, you may have a number of shops you’re looking to service, so ask yourself, do they need a mobile service to their shop or are they willing to bring the vehicle to you? This is an important piece to think about as some shops have space to work and others do not. If calibrations are part of your service to your customers, an incredible amount of validated space that meets OE requirements will require a great deal of real estate in their shop. If the shop is bringing vehicles to you, then you need an easily accessible space that has the OE-validated requirements of a level floor, lighting and internet — and these are just some of the requirements.
For shops having vehicles brought in for services, some vehicles with radars require sensor alignments prior to reassembly to be sure the sensors are mounted correctly. Many times, repair technicians miss this, and when the calibration fails and the bumper covers or assemblies need to be removed, how comfortable are your technicians in removing these assemblies to verify the sensor alignment — which is a separate procedure to a calibration? On some new models, we’re seeing a calibration required with bumper cover off, then another with bumper cover on to verify radar energy parameters. Whether you’re doing mobile services or bringing vehicles into your shop, you’ll need to be prepared for many situations.
Each customer will have different needs, and many will expect you to know what needs to be done so it can be included on the initial estimate vs. supplements if insurance companies are paying. Much of your time will be spent educating on what needs to be calibrated and why. You’ll also need to provide the documentation proving what calibration is needed and why. The days of service companies providing invoices to collision shops with no documentation are rapidly coming to an end. Companies today will spend a great deal of time educating and documenting for their customers, eating up work time you would rather spend performing services and creating revenue.
If parts are replaced, will coding, initializations or programming be needed before the calibration? You’ll be expected to know what will be needed for every year, make and model as again, it needs to be in the initial estimate to be scheduled accordingly. If you don’t understand the cycle time for the shops you’ll be working with, I suggest learning that and many other terms your customers will use to be on the same page so shops can deliver on promised dates. Length of rental and what a shop may be paying for extra days of rental when a vehicle is delayed is also something you’ll need to be aware of. Being a good business means understanding all the pitfalls as well as what will be needed by your customer.
Service Information
All of the things I’ve mentioned to this point in this article will require you to have up-to-date service information. This does not just include how to do a calibration but processes needed before the calibrations are even attempted. Many forget to read all the job aids and hyperlinks included in the calibration process instructions and wonder why calibrations fail or there is no communication to modules being accessed. These hyperlinks and job aids will tell you other processes that may need to be completed, and many times will be much longer and detailed than the instructions for the calibration. You’ll find initializations or programming are needed for many replaced parts.
So now you know that just providing calibrations is only part of what customers will need. You’ll need to be a full-service company as shops only want to make one call and not have multiple bills. You’ll need to determine the best source of service information as you will need to access it every day. The OE websites can be challenging to navigate, thus causing you to spend lots of time researching what you need. Keep in mind too that TSBs and job aids are always coming out and changing processes, so you’ll need to keep tabs on this daily as information changes quickly as the vehicle manufacturer is learning too. You’ll also have to learn where to find the information as again, you’ll need to provide documentation to your customer.
Equipment
Purchasing the equipment needed is a long subject. To my knowledge, I’ve not seen one tool that does it all for all vehicle solutions. You’ll need to determine what year, make and model of vehicles you’ll be providing service for. If you plan on purchasing the OE software and VCI or passthrough for the vehicles you’ll be servicing, you’ll have a tremendous amount of ability and service information resources. Having all the subscriptions and equipment needed to communicate with vehicles will come at a great cost. Learning to navigate each software becomes easier with time as much of it will be trial and error as there is limited training available, but this avenue of tooling will give you more access to vehicle modules. The biggest benefit is the ability to do work on brand-new vehicles when released.
In the aftermarket tool world, it’s great to have a tool that can work with multiple vehicle makes and models. You can also get target packages, which are a great way to save money and time. I also appreciate new systems such as one calibration equipment manufacturer’s new line of stands that take into consideration vehicle alignment. As systems become more sophisticated and improved sensors become the norm, vehicle alignment will need to be verified. It has always been a concern, yet it has mostly been overlooked by the industry.
There is a drawback with aftermarket tools, and a company must choose wisely as the OEMs are changing access to vehicles, thus making getting coverage for new vehicles a challenge. It may take time for them to get the coverage you need. I’ve seen some aftermarket companies go to extreme efforts to get coverage faster, but when you have a vehicle and you cannot perform a calibration or any other service, it can be time-consuming and infuriating for you and your customer.
The equipment part of the equation for any company starting out is a long and detailed thought process. I could spend hours and give examples on every which way a person can go on purchasing tools and equipment.
If you’re starting a company, you probably already have tools and equipment you’re comfortable and familiar with. You’ll need to figure out if the equipment you have will take you into the future. Never stop learning and researching new possibilities in equipment. You may find having both the aftermarket for speed and ease of use and having the OE solution for new vehicles is the way to go. That will be determined by your customers’ needs.
People
There are two subjects regarding people, or your employees. First, if you’re starting out by yourself, you’ll learn that doing the actual work and then the backend of billing and collecting payment is a whole new expenditure of time to consider. So, you’ll need to look at adding people as business grows.
One thing I’ve learned is that you can’t train experience. There’s a tremendous learning curve to knowing all year, make and model of vehicles and what must be done. Finding a person who’s a problem-solver by nature is key to honing in on a good diagnostic technician. They must also have the ability to follow all instructions to the letter and be able to think outside the box when things don’t work. They must have a desire to learn and read all they can to keep up. Sounds daunting … and it is! These types of technicians are in high demand, and you’ll be competing for them with other companies. You can train your own, but once they build experience and become a good technician, you have to do your best to retain them. It becomes a tremendous challenge for any company, big or small. You’ll need to think about how you as a business will be approaching this issue.
Second, your customers (repair shops) are still dealing with a shortage of technicians. And, in many shops, you’ll find turnover in management and technicians. This turnover also brings change to a shop’s vendors as new people have vendors they work with from previous employers. You’ll have to sell yourself and your company every day as you don’t know what you’ll be walking into on any given day. You’ll constantly be selling and educating and building trust in who you are and why you’re the best partner for that shop. You’ll need to instill in your employees every day that they need to represent you well as a company.
Summary
Starting a business in this highly competitive and challenging world is interesting. All the change and research a person needs to do to be successful can be scary. But people have done it and become very successful. However, as with any business a person dreams up and starts, it took time and a lot of bumps and bruises. To anyone looking to do so, I wish you luck.
