For decades, many collision shops let insurance companies bring them work and called it a strategy. It worked for a long time. It is working less now, and shops that never built a presence outside their DRP relationships are starting to feel it. This episode is for every body shop owner who has said “we don’t need to market.”
In episode 146 of Maximum Octane, Kim Hickey, Jason Patel, and ATI collision team leader Mike Paim talk with Daniel Burkholder, founder of BodyShop Marketing, a firm built exclusively for collision shops. Daniel explains how DRP dependence created a blind spot, what marketing budgets look like, where the best ROI is, why tracking matters, and why the shops building their brands now will be the ones still standing.
What You Will Learn
- Why body shops came out of COVID fully booked and still skipped marketing, and why that mindset is exactly what puts them in a bad spot today
- The marketing spend benchmarks most collision shops have never heard: 5% of revenue to maintain, 10% to grow, 15% to grow aggressively
- How decades of DRP dependence became a limiting belief, and why shops convinced they “can’t market” are wrong but not entirely without reason
- Why younger shop owners who think they can handle marketing themselves are making the same mistake as owners who have never touched it
- Where BodyShop Marketing sees the best ROI for clients right now: organic search, Google Ads, and the rapidly growing AI search landscape
- The second biggest problem Daniel sees across the industry: shops spending money on marketing with zero tracking and no idea what’s working
- Why you can’t turn on marketing when things get slow, and why Daniel will turn away shops that are already in trouble
- The long game of brand building: what it looks like when a shop owner’s name becomes what people are searching for, not just the service
- The Safelite and Nike argument for why collision shops should be marketing even when they are fully booked
- Daniel’s two closing takeaways for every shop owner: start marketing now, and track every single dollar you spend
Fully Booked and Still Skipping Marketing
Daniel opens by explaining why many body shops came out of COVID fully booked and skipped marketing, and why that mindset puts them in a difficult position now. Being busy today does not guarantee being busy tomorrow. Shops that stopped building awareness are now competing with those that did.
A full schedule hides a lot. When the bays are packed, nobody asks where the next wave of work will come from, and the owner’s attention goes to cycle time, parts delays, and staffing. But a booked shop is often living off momentum created years earlier: a referral network, a DRP assignment, a good location. Momentum fades. Insurer programs change, a competitor opens a new facility, or a consolidator moves into town and starts outspending everyone on search. The shops that kept building awareness while they were busy have something to fall back on when that happens. The ones that did not have to start from zero at the worst possible moment.
Marketing Budget Benchmarks
Around the 7 minute mark, Daniel shares marketing spend benchmarks many collision shops have never heard: about 5 percent of revenue to maintain, 10 percent to grow, and 15 percent to grow aggressively. These are general guidelines, and the right number depends on goals and market, but they provide a useful starting point.
The value of a benchmark is that it forces a conversation most owners never have. Many collision shops cannot say what they spent on marketing last year, because the money is scattered across a website host, a sponsorship, some ads, and a few directory listings. Pulling those costs into one line on the profit and loss statement is the first step. From there, an owner can decide deliberately whether the shop is in maintenance mode or growth mode and budget accordingly. A good practice is to set the marketing budget as part of the annual plan, review it quarterly against results, and resist the urge to cut it the first time a month comes in light.
DRP Dependence as a Limiting Belief
Daniel explains how decades of DRP dependence became a limiting belief. Many shops are convinced they “can’t market,” and while they are wrong, he acknowledges they are not entirely without reason. DRP relationships shaped how collision shops think about customer acquisition. Building direct customer relationships requires a new mindset. ATI’s Always Be Closing! The ABCs for Boosting Collision Shop Business covers related strategies.
The belief makes sense when you look at how it formed. For years, a large share of collision work arrived through insurer referrals, so the customer’s first relationship was often with the carrier, not the shop. That trained many owners to think the vehicle owner’s choice did not matter much. In reality, consumers in most states have the right to choose their repair facility, and plenty of them search online before they ever call an insurer. A shop that shows up in that search with strong reviews, clear information, and a recognizable name can win work regardless of program status. Direct relationships also give the shop more leverage and less exposure if a DRP agreement changes.
DIY Marketing Mistakes
Around the 14 minute mark, Daniel explains why younger owners who think they can handle marketing themselves often make the same mistake as owners who have never tried. Effective marketing requires time, expertise, and consistency that most owners cannot provide while running a shop.
Where the ROI Is Now
Daniel shares where his clients see the best ROI: organic search, Google Ads, and the fast-growing AI search landscape. When people search for collision repair after an accident, being visible in search and AI-generated answers matters. Google’s SEO Starter Guide explains the basics.
For a collision shop, the most valuable searches tend to be urgent and local: someone has just been in an accident and wants a trusted shop nearby. That means the Google Business Profile, review volume, and location pages on the website carry a lot of weight. Paid search can capture demand quickly, while organic search builds an asset that keeps producing over time. AI-generated answers add another layer, because those tools tend to pull from sources that describe a business clearly and consistently across the web. Accurate listings, detailed service pages, and a steady flow of genuine reviews help a shop show up in all three places.
Track Every Dollar
Around the 21 minute mark, Daniel names the second biggest problem he sees: shops spending money on marketing with no tracking. Without tracking, owners cannot tell what works. Call tracking, form tracking, and source reporting connect marketing to repair orders.
Tracking does not have to be complicated to be useful. Assign a unique tracking phone number to each major channel, make sure web forms record where the visitor came from, and ask every new customer how they found the shop at the front counter. Then connect those leads to closed repair orders in the shop management system. Over a few months, patterns appear: one channel may produce lots of calls but few repairs, while another produces fewer leads that convert at a much higher rate. Without that view, owners tend to judge marketing by gut feel or by what a vendor reports, and both can be misleading.
You Cannot Turn It On When Things Slow
Daniel explains why marketing cannot simply be turned on when business slows, and why he may turn away shops that are already in trouble. Marketing takes time to build. Doug Robison makes the same case in Stop Marketing When Things Are Slow: Start 365 Days Ahead.
Search visibility, reviews, and brand recognition all compound. A website that has been publishing helpful content for two years has an advantage that cannot be bought in a month, and a shop with hundreds of reviews is hard to catch quickly. That is why starting marketing in a crisis rarely saves a shop. The cash pressure pushes owners toward fast, expensive tactics, and there is no time for the slower channels to mature. Treating marketing as a fixed operating expense, like rent or insurance, keeps the shop investing during good months so that the slow months are less severe.
The Long Game of Brand Building
Around the 26 minute mark, Daniel describes what it looks like when a shop owner’s name becomes what people search for, not just the service. He uses well-known brands, like Safelite and Nike, to argue that collision shops should keep marketing even when fully booked. The shop that does not tell its own story lets the algorithm write one for it.
Two Closing Takeaways
Daniel’s closing advice is direct: start marketing now, and track every dollar you spend.
Common Marketing Mistakes Collision Shops Make
Even shops that commit to marketing can lose money doing it poorly. A few patterns show up again and again:
- Buying tactics instead of a plan. A one-off ad, a billboard, or a sponsorship without a clear goal rarely moves the needle.
- Ignoring the Google Business Profile. Outdated hours, missing photos, and unanswered reviews cost calls every week.
- Letting the website go stale. A site built years ago may load slowly on phones and say little about certifications, OEM repairs, or the claims process.
- Skipping review requests. Happy customers rarely leave reviews unless someone asks at delivery.
- Changing vendors constantly. Search and brand building need time, and frequent switching resets progress.
The fix for most of these is the same: set goals, choose a few channels, measure them, and stay consistent long enough to learn what works. Daniel’s firm, BodyShop Marketing, is also listed among ATI’s partners.
Collision Marketing Checklist
- Calculate your current marketing spend as a percentage of revenue.
- Set up call and form tracking for every channel.
- Audit your visibility in search and AI-generated results.
- Build a brand story that is not dependent on DRP relationships.
For more collision growth stories, listen to Jeff Zalis in Total Gain: How to Take Your Collision Shop to the Next Level and Robbie Windham in Small Town Big Growth. ATI’s Collision Shop Solutions page describes coaching for collision owners.
Frequently Asked Questions
How much should a collision shop spend on marketing?
A common rule of thumb discussed in this episode is roughly 5 percent of revenue to maintain your position, 10 percent to grow, and 15 percent to grow aggressively. These are starting points, not fixed rules. The right number depends on your market, competition, current visibility, and goals. Before setting a budget, add up everything you currently spend, including website fees, ads, and sponsorships, so you know where you stand.
Do body shops still need to market if they have DRP relationships?
Yes. DRP work can disappear or shrink when insurer programs change, and relying on a few referral sources leaves a shop exposed. Many vehicle owners search online and choose a shop themselves, especially when they know they have the right to pick their repairer. Marketing directly to consumers builds a customer base the shop owns, which adds stability and gives the business more options over time.
What is the best marketing channel for a collision repair shop?
For most collision shops, local search is the foundation: a complete Google Business Profile, strong reviews, and a fast, informative website. Paid search can generate calls quickly, while organic search builds lasting visibility. AI search tools are increasingly part of how people find businesses, so consistent, accurate information across the web matters. The best channel for a specific shop is the one that tracking shows is producing repair orders.
How do I track whether my body shop marketing is working?
Use call tracking numbers for each channel, record the source of web form leads, and ask every new customer how they heard about you. Then connect each lead to a repair order in your management system so you can see revenue by source, not just lead counts. Review the results monthly. Over time, you will see which channels deserve more budget and which should be cut.
Should I handle my shop’s marketing myself?
Some owners can manage basics like review requests and social posts, but effective marketing takes consistent time and specialized skills in search, advertising, and analytics. Most owners are already stretched running production and people. If you do hire help, choose a partner that understands collision repair, reports results tied to repair orders, and explains what they are doing in plain language.
Resources and Links From This Episode
Connect With the Guests
- Daniel Burkholder: LinkedIn, BodyShop Marketing
- Mike Paim: LinkedIn
