How much can coaching and strategic planning help a collision shop grow? Jeff Zalis, owner of Specialized Auto Craft, has used both to push his shop to the leading edge. He constantly looks for ways to improve through transparency with customers, better processes, and the latest technology.
In episode 110 of Maximum Octane, Jeff shares how he elevated his shop, the value of coaching, the challenges of sensor calibrations, how he improved documentation to support OEM repair procedures, why transparency matters with total losses, how he handles insurance companies, and practical tips for independent repair shops.
What You Will Learn
- Jeff talks about tax and benefits load in the collision industry
- Why transparency is crucial when dealing with total loss
- Jeff shares his thoughts on dealing with insurance companies
- How to optimize documentation processes
- It is not “buy the machines, and you are ready to go.” Jeff talks about adding new tech the right way
Tax and Benefits Load in the Collision Industry
Jeff opens with the tax and benefits load collision shops carry. Payroll taxes, insurance, and benefits add significantly to the cost of every employee. Understanding that full cost is essential for setting labor rates and making staffing decisions. ATI’s Top 5 Areas Where You’re Losing Money on Your Estimates explores related margin issues.
Many owners set labor rates by looking at what competitors charge, but that approach ignores what each technician actually costs the business. Beyond wages, a shop pays employer payroll taxes, workers’ compensation, health insurance contributions, paid time off, retirement benefits, and training. When those costs are added together, the true hourly cost of an employee can be considerably higher than the wage alone.
Knowing that figure changes conversations about pricing and staffing. It shows whether a labor rate truly covers the cost of production, and it helps an owner decide whether a new hire will pay for themselves. Many shops review this calculation with their accountant at least once a year as wages and benefit costs change.
Transparency With Total Losses
Around the 9 minute mark, Jeff explains why transparency is crucial when a vehicle is a total loss. Customers are often upset and confused when they learn their car will not be repaired. Clear, honest communication about the process, the role of the insurer, and their options builds trust, even when the news is bad. That trust can bring the customer back for their next vehicle.
A total loss conversation is often emotional. The customer may have just been in an accident, may be worried about how to get to work, and may be attached to the vehicle. A clear explanation of how the insurer makes total loss decisions, what happens next, and what the customer can expect in terms of timing and personal belongings goes a long way.
Shops that handle these situations well often have a simple script or checklist so every team member covers the same points. Helping the customer retrieve items from the vehicle and pointing them toward next steps shows care, even when there is no repair to sell.
Dealing With Insurance Companies
Jeff shares his thoughts on working with insurers. The insurance landscape changes constantly, and collision shops must adapt while protecting repair quality and getting paid fairly. Professionalism, documentation, and knowledge of repair procedures strengthen a shop’s position. ATI’s 5 Areas Collision Shops Should Be Getting Paid Instead of Pushback is a helpful resource.
Strong insurer relationships rest on predictability. When a shop consistently submits complete estimates, clear photos, and procedure references, reviewers know what to expect. Disputes become easier to resolve because the documentation answers many questions before they are asked.
It also helps to know your rights and obligations. Repair procedures from the vehicle manufacturer define what a proper repair requires, and shops that can show why an operation is necessary are in a better position than those relying on habit or memory.
Optimizing Documentation
Around the 21 minute mark, Jeff explains how he improved his documentation process to support OEM repair procedures. Thorough documentation, including photos, measurements, scans, and procedure references, proves that repairs were done correctly and supports payment for necessary operations. It also protects the shop if questions come up later.
OEM repair information and training resources from organizations like I-CAR help shops follow correct procedures. ATI’s Estimate Scrubber tool also helps collision members catch missed items.
A standardized documentation process means every vehicle gets the same treatment, no matter who writes the estimate or performs the repair. That might include photos at check-in, during teardown, and at key repair stages, pre-repair and post-repair scan reports, measurements, and saved copies of the OEM procedures used.
The common mistake is treating documentation as a task done at the end. Capturing information as work happens is faster and more accurate. Assigning responsibility, using consistent file naming, and reviewing a sample of files each week keeps quality high.
Adding Technology the Right Way
Jeff closes with an important warning: it is not “buy the machines and you are ready to go.” Adding technology like calibration equipment requires training, space, processes, and ongoing investment. Shops that skip those steps end up with expensive equipment that does not deliver results.
Before buying new equipment, shops benefit from asking a few questions. Who will operate it? What training do they need? Where will it go, and does that space meet the manufacturer’s requirements? How will jobs be scheduled and documented? What volume is needed to justify the cost?
Answering these questions in advance turns a purchase into a capability. It also prevents the frustration of expensive equipment sitting idle because no one is confident using it.
The Role of Coaching
Jeff credits coaching with helping him plan and execute growth strategies effectively. An outside perspective helps owners see blind spots and stay accountable. ATI’s Collision Shop Solutions page describes coaching options for collision owners.
Coaching helps owners turn good ideas into consistent action. Many collision owners know they should calculate employee costs, standardize documentation, or train before buying equipment, but daily demands push those projects aside. A coach provides structure, deadlines, and a sounding board.
Peer groups add another layer. Hearing how other collision owners have handled insurer relationships, total loss conversations, or technology investments gives practical examples and reduces costly trial and error.
What This Looks Like for Estimators and Advisors
The front office plays a big part in transparency and documentation. Estimators who take thorough photos and research procedures at the start of each job reduce supplements and delays later. Advisors who explain the repair process clearly, including the role of the insurer and the possibility of hidden damage, set realistic expectations.
When a vehicle turns out to be a total loss, the advisor is usually the person who delivers the news. Preparing for that conversation, speaking calmly, and giving the customer clear next steps protect the relationship. Many customers remember how they were treated during a stressful moment and return when they need repairs on their next vehicle.
How to Put This Into Practice This Month
Improvement does not have to wait for a major overhaul. A shop can make meaningful progress in a few weeks by focusing on one area at a time.
- Week one: Work with your accountant to calculate the full cost per hour of each employee, including taxes and benefits.
- Week two: Write a documentation standard listing the photos, scans, and procedure references required for every job.
- Week three: Create a short guide for total loss conversations and practice it with your team.
- Week four: Review any planned equipment purchase against a training and space checklist before signing.
At the end of the month, review what worked and decide what to tackle next.
Collision Shop Improvement Checklist
- Calculate the full cost of each employee, including taxes and benefits.
- Create a script for explaining total losses with empathy and clarity.
- Standardize documentation for every repair.
- Build a training plan before buying new equipment.
Robbie Windham shares his expansion story in Small Town Big Growth. For marketing in the collision space, listen to Body Shops Don’t Market.
Frequently Asked Questions
How do I calculate the true cost of an employee in a collision shop?
Start with gross wages, then add employer payroll taxes, workers’ compensation, health insurance contributions, retirement benefits, paid time off, uniforms, and training. Divide the total annual cost by the hours the employee is available to produce work. That figure shows what each productive hour truly costs. Review it with your accountant at least once a year, and use it when setting labor rates and making hiring decisions.
How should a body shop explain a total loss to a customer?
Be calm, honest, and clear. Explain that the insurer makes the total loss decision based on repair cost compared to the vehicle’s value, outline what happens next, and give realistic timing. Help the customer remove personal belongings and answer questions about rental or transportation if you can. A respectful, transparent conversation builds trust, and many customers return when they need repairs on their next vehicle.
What documentation should collision repair shops keep?
Thorough documentation typically includes photos at check-in, teardown, and key repair stages, pre-repair and post-repair scan reports, measurements, calibration records, and copies of the OEM repair procedures followed. Standardize the process so every job is documented the same way, capture information as work happens, and store files consistently. Good documentation supports payment for necessary operations and protects the shop if questions arise later.
What should a collision shop consider before buying calibration equipment?
Consider who will operate it, what training they need, whether you have space that meets the manufacturer’s requirements for floor level, lighting, and clearance, and how you will access current OEM procedures. Estimate your calibration volume to see whether it justifies the cost. Plan how jobs will be scheduled and documented. Equipment without trained people and processes rarely delivers the expected return.
How can coaching help a collision repair shop owner?
Coaching provides an outside perspective, structure, and accountability. A coach can help an owner identify blind spots, prioritize improvements such as documentation or labor rate analysis, and follow through on plans that tend to get pushed aside by daily demands. Many coaching programs also connect owners with peer groups, where they can learn from others facing the same challenges with insurers, staffing, and technology.
Resources and Links From This Episode
Connect With the Guests
- Jeff Zalis: Specialized Auto Craft Website
