Car Care Pro:
Productive — Professional — Proactive
By Scott Brothers, CIC

When was the last time you stepped back and took a long, honest look at where your business is today compared to where you would like it to be? Is your bottom line keeping up? Do you need to update equipment, technology, or knowledge of the industry forecasts?

How can you know the answers to these questions? To be professional at anything — sports, music, or business — you have to build a good foundation. Two key elements to becoming better than average are:

• Learn the basics
• Practice what you learn

DIFFERENT EXPOSURES

There are a number of different types of car care operations. Each brings with it different exposures. Whether you have an in-bay automatic, self-service, exterior-only, full-service conveyor, or lube and oil bays, one of your largest exposures is damage to your customers’ vehicles. Whether it is one of your machines or an employee error that breaks an antenna, pulls off striping, cracks glass, or damages tires, as the owner of the wash, you can be responsible.

Real and Personal Property
Your largest single investment in your business may be the real and personal property needed to operate. Whether you own and operate the location or lease it, you have at-risk the building and machinery. You may think of natural disasters as your worst-case scenario. This is possible, but based on the claim statistics you have a higher probability of loss from electrical malfunctions and other machinery problems than a loss from fire, lightning, or wind.

In years past, damage to computers that were used for business transactions were a concern because they were highly susceptible to damage, and especially a concern if being moved from one location to another, as they were extremely fragile and costly. With improvements in durability and reduced pricing for these items, the concerns have relaxed somewhat.

However, the real computer exposure today is not for office work but for highly mechanized operations to control the processes in your day-to-day operations. If you have computer controlled equipment, you will want to be sure that your insurance program has kept pace with the times and the definitions in your policy are adequate to protect both the office and operations technology.

Crime
What about crime exposures in the car wash industry? The first thing that comes to mind is loss of cash. Whether it is coin or currency at risk from vending machine operations or from the actions of an attendant, you do not want to experience a loss. Frequency of deposits and hours of operation are some of the crime details to consider. If you do have an attendant on duty it may reduce the exposure from robbery or theft but may create a different exposure to crime loss — employee dishonesty.

Most of the above mentioned exposures can be measured by the amount of money you would need to replace or repair the items. This amount can be determined by the original purchase price and/or through consultations with your suppliers to determine the market price today.

Injuries
There is another exposure that is just as real and much more difficult to measure. Your exposure to loss from legal responsibility for injury to others is an unknown and subject to many variables, none of which you control. For example, someone slips and falls on your premises and alleges that you were negligent and are therefore responsible for their injury. Even safe surfaces become slippery when they are exposed to water. And, since most car care businesses use water, this is a greater hazard in the car care industry than in other businesses. When you add icing exposures during winter months, the potential for significant loss could be overwhelming.

Drivers
As members of the car care community, exposure to loss from the operation of automobiles is another real concern. Whether you or your employees are moving customers’ cars or running an errand for the business, be aware of the basics of sensible automobile operation, as well as compliance with your state laws. You should require that anyone who takes control of customer vehicles or a company vehicle must have a valid driver’s license and show proof by providing a copy of their Motor Vehicle Record (MVR). The record documents any accidents or violations related to their operation of an automobile.

CONTROL EXPOSURE

You may not be able to eliminate these exposures. However, you can control the exposures by being a PRO.

Be PROductive
To get the biggest bang for your buck, recognize that you may need to invest capital. Whether you have new or used equipment, make sure it is functioning properly. Invest in employees by training them to use the equipment to its most cost-effective potential. This means have available to them the manuals, materials, and training to use the equipment safely and keep it operationally sound. Demand that employees stick to the safety and maintenance rules you have put into place. To reinforce the importance of this it is critical that you are willing to enforce your own rules.

For example, if employees are not wearing safety equipment you have provided or are careless in the use of equipment or customer automobiles, you should confront them by reminding them of the safety rules. If they fail to correct their behavior, then replace them with employees who will be productive.

Your insurance program is also in place to help you be productive. Work with an agent who knows your business and is concerned about your financial wellbeing. The services of a qualified agent will help you identify areas for improving your protection and to provide an insurance program that is best for you and your business.

Productivity is more than just a buzz-word — productivity is a measure of output from your business process, per unit of input. Whether assets, labor costs, or other business expenses represent your input, productivity takes into account both the monetary value of what is produced (profit) and the costs of inputs used.

Be PROfessional
A professional is a person who is expert at his or her work and makes a constant practice of undertaking or engaging in his or her means of livelihood for gain.

As you are aware, to be a professional in your business you have to be engaged in learning everything you can about the business. Be concerned and alert regarding new technology, new products, methods, and results that are part of your business. Today, one of the major issues continues to be the environment. Everyone is talking about “going green.” Your business does affect the environment especially the availability of adequate, safe water supplies. As a professional, it’s important to do your best to be part of the solution and not the problem.

The car care industry like so many others has its share of amateur players, people who try to earn a living in a business that requires professionalism for success. Unlike professional sports where there are minor leagues, and the pros don’t compete head-to-head with the amateurs, you may find in your market area operators who cut corners and appear to be making their business work.

If you keep score, however, you’ll see that only the pros, like yourself, will be able to successfully sustain market share and longevity.

Be PROactive
Proactive leadership is a function not a position. It is the composite of all of the skills you apply that influence and inspire others to think, say, and do the right thing at the right time. As a proactive leader, you should anticipate problems and change the way things are done before a problem becomes a crisis.

Acting in advance to deal with an expected difficulty — instead of waiting for things to happen and then trying to adjust to them — results in preemptive behavior. Being proactive assumes an active, rather than passive, role in doing and accomplishing identification and prevention.

Don’t wait for trouble to come knocking at your door. Step up to the plate and begin today to be proactive in your operations. Seek out capable assistants to be on your team. Choose your CPA, attorney, insurance agent, and other professionals pertinent to the success of your business, with the same degree of care that you use in other areas of your life.

As a PRO, you are a team player and are fully aware that it takes the best efforts of each individual player to have a successful (profitable) team. After all, you are in business to make a profit and you’re way ahead of the game by incorporating professionalism, productivity, and proactive behavior.

Scott Brothers is president and CEO of Joplin, Missouri-based The Insurancenter. The Insurancenter has been insuring the car care industry since 1986, and is the largest writer of car wash insurance nationwide.