
Over 140 delegates have heard the issues, trends and best practice from all corners of the globe for the first ever IBIS CEE.
In the opening session of IBIS CEE, Chris Mann offered an overview of the industry issues faced in countries around the world. He looked at repair markets in countries including Argentina, Canada, China and Greece and described how they all face their own issues, yet many are common across the world.
‘There are many issues we face as an industry, which are common the world over,’ said Chris. ‘One such issue is the rise of multi site bodyshop operators who are growing in size and importance in mature markets as well as emerging markets including India.’
David Lingham was next to take to the stage with his presentation ‘building business around the world’. David described business relationships in three different stages – ‘courtship, marriage and avoiding divorce’. David encourage delegates to be aware of models around the world and ‘chose business partners with care, they should be for life.’
AZT’s Norbert Hermann described the AZT business model and their position as the ‘gateway’ to the automotive industry. He explained the current projects being implemented including a calculation aid for plastic and dent repair as well as green repair methods. ‘We are also in the process of calculating paint data for 30 countries,’ Norbert told delegates.
‘We work in partnership with the schooling system to attract and train our future staff,’ said Henk Van den Boom of Car-e-Schade during his presentation. With 54 shops in Holland and 11 in Belguim, Car-e-Schade is a big player in the Netherlands repair market. ‘Be prepared for the future, reduce total costs and implement quality and standards’ he explained as being his three keys to success.
Following discussion about networks, David Lingham summarised ‘It’s not a question of if, it is a case of when they will influence your market.’
Dane Loosley’s session – Western Europe business relationships what can be learnt, an insurer perspective – explored the insurance market and its impact on the accident repair industry. Dane introduced Allianz with a brief overview and stated how the insurer had 76 million customers in 70 coutnries. He also explained how, in the UK, one in 10 of its claims handlers are actively involved in prosecuting fraud cases and following contact from first notification of loss, the insurer on average handled six calls per motor claim.
In discussion regarding partner relationships within maturing markets, Dane told delegates, ‘Make it easy for people to do business with you. My suggestion to the CEE region is try to understand each other and what each party wants. Communication is key.’
Dariusz Krol of VW Poland looked at the involvement of vehicle manufacturers within the accident repair market and spoke of the necessity for them to guarantee safety, honour warranties and provide customer service.
Because of Dariusz’s vehicle manufacturer experience (VW, Audi and Porsche) and his knowledge of accident damage and repair methods, as an independent assessor, his message to IBIS CEE delegates was that technology, training and safety should go hand-in-hand with customer relations management.
The final session of the day was a panel debate which included David Shepherd, Phil Brailey, Henk Van den Boom, Dariusz Krol and Norbert Hermann. The session discussed the lessons, maturing markets can take from more developed markets and the pitfalls to avoid.
David Shepherd explained that the CEE region had ‘been hit hard’ by the recession. Henk Van den Boom encouraged bodyshops to dismiss the ‘misconception’ that higher repair costs would equal more profit for repairers. ‘Repairers can make more money by reducing repair costs,’ he said.
On the subject of insurer owned bodyshops, Phil Brailey commented, ‘I like milk on my cereal, however I don’t want to own a cow.’ There was also discussion on the practice of ‘cash in hand’ claims settlements – common within mature markets such as German as well as developing countries such a Serbia where 65% of claims are settled this way.
Phil also spoke out against fixed price repairs, calling the process of pre-agreed or contract price repairs ‘counterproductive’. When a price is agreed it’s based on a specific set of data, but what happens when things change?’ he asked. ‘It encourages the repairers to cut corners.’
In closing, David Lingham summarised, ‘don’t look at a partner to simply cut costs, look at a partner to add value.’