The Franchise Owner's most trusted news source


Log In / Register | Aug 14, 2018

Reading the comments here, it

Reading the comments here, it is painfully obvious that one fatal flaw has developed in the Maaco system. The production auto painting industry was invented by Earl Scheib to fill a niche. He recognized that it is not efficient and therefor not profitable for a conventional body shop to paint cars at an affordable price. That has not changed. I've seen several comments about how Tony Martino developed a good system and then turning around and blaming Maaco corporate for their failure as business owners. They may be half right. After Tony's death, Maaco started pushing collision repair services on their franchisees and it is no coincidence that they have been on the decline ever since. Collision work is inherently more expensive and therefor gross sales (and royalties) increase. The production paint model exists solely because collision shops are not designed to operate in a manner that makes doing cheap paint jobs profitable. So how does pushing collision repair suddenly seem like a good idea to anyone other than the people who are getting their cut of the top? Of course it makes sense to Maaco as it is a huge boost in royalties, but a fundamental principal of production auto painting is volume of cars, not ticket average. I can take you to shops right now (not Maacos) that paint a high volume of cars at low prices and are extremely profitable. most of these shops run AROs in the $500 range, but some as low as $300. I actually start painting cars at $250 and make a vert healthy living doing it. I was brought up old school in the industry and live by the golden rules of production auto painting. One of those is that you don't make money on parts. We always had to deduct parts from our sales as though they don't exist. Now I just avoid selling parts. Its easier. The other is that it does not matter what you charge per car, the only thing that matters is how many cars you can get through. Just like Scheib and Martino intended. It worked then and it works now.The idea that you can be both a collision shop and a production shop is the business equivalent of schizophrenia.

Reply

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.