Pennsylvania shop builds business on first impressions - - ABRN (Automotive Body Repair News)

Pennsylvania shop builds business on first impressions

Source: Automotive Body Repair News





When customers enter the front office of Noaker's Auto Body in the small town of Duncannon, Pa., north of Harrisburg, they're struck by a couple sensory reactions. People comment, "It doesn't look like a body shop. It doesn't even smell like a body shop."

Yet there's no mistaking the type of business Robert Noaker owns.

"These reactions — they're intentional," Noaker says. "We don't want to look like the standard auto body shop. We made the decision to operate our office in a separate building from the shop. We now hang up photos of mountains and rivers to replace the certification plaques that used to mark their spots on the walls. We found that nobody outside of our industry cares about (those plaques)."

The certifications now reside in folders, although they're certainly nothing to sneeze at. The I-CAR Gold shop also is ASE-certified and filled with ASE master technicians.

The feedback regarding the shop's front office cements Noaker's decision, enabling him to stand apart from his competition. "We hear from customers all the time who are shopping around that from the start our shop 'looks much better,'" he says.

The "look" has ultimately translated to the bottom line. Having opened in January 1999 with revenues of about $110,000, Noaker's pleased, even humbled, to report revenues of $1.7 million in 2007. His ballpark estimate for 2008 is to the tune of more than $2 million. Some of those revenues can certainly be attributed to direct repair programs — 14 in all, along with a couple dealership arrangements.

The profitable business is outgrowing itself already. Four years ago, Noaker built a new shop, based on demographics data indicating the building would be "plenty big" to fulfill his shop's then-current needs. Yet by early this summer, the 5,000-square-foot shop will build an addition that will add 19 bays and 12,000 square feet to existing space. Noaker says he is pleasantly surprised by the increasing amount of business for a shop whose radius now spans approximately 40 miles and relies mostly on word of mouth.


SNAPSHOP
He credits the shop's success to his 15 loyal employees, one of whom includes his wife, who handles the bookkeeping. The number of employees has consistently grown since the beginning and will likely climb with the completion of the new addition. "I haven't lost an employee I wanted to keep," he says. He attributes that in part and half-jokingly to the fact his shop has air conditioning.

Although he really doesn't struggle to keep employees, Noaker still invests in incentives such as training opportunities and his restaurant plan. He set up accounts with several restaurants in the area. Each of his employees receives $40 per month, which they can save and then use to take their families out, for example.

And if the employees look forward to their restaurant incentive, Noaker's practically a kid in a candy shop when it comes to another aspect of the business: equipment. "If something new comes out, we usually try to get it. Some might call me a toolaholic," he admits, confessing that back when he was working two jobs, he'd spend his entire paycheck from one of his jobs strictly on tools. Recently, the shop invested in a new frame rack, and Noaker currently is eyeing a new paint booth, since the current one runs 14 hours a day.


Comments from our Readers
 Posted Jul 08 2008 12:19PM
I'm sick of all these big shops talking about how they have all this business and success because of word of mouth. It must be the insurance’s mouth, YOU HAVE 14 DRP's dude, and it’s on the first. Never have there been more individual million-dollar shop then now, it just goes to show why our industry is so jacked up and the amount of sellouts there are.
 Posted Jul 08 2008 03:08PM
Sellout?How about making a comprehensive buisness choice.We choose to participate in drp programs and you don't.We were able to gross almost 6m in 07 and made a profit.Sellout?I call it buisness.
 Posted Oct 30 2008 01:29AM
Actually, speaking in regards to this particular Auto Body Shop...the "WORD OF MOUTH" that built this shop was earned the old-fashioned way. Thru, of course, both hard work and great ethics. Not to mention how this business goes over & above the call of duty. Their prices are more than fair, and the work that they do along w/ the terrific "Service w/ a Smile" additude...the insurance companies WANT this place on their list. Why? Because it's the better & overly-proven, obvious choice if the insurance company wants to keep a happy customer. NEVER ASSUME...JUST BECAUSE A BUSINESS IS BIG DOES NOT MEAN IT STARTED OUT THAT WAY. AND NEVER ASSUME THAT A BIG BUSINESS IS JUST MAGICALLY "PLACED" ON THE TOP OF ANY INSURANCE LIST. THAT SPOT HAS TO BE EARNED. Fortunately, the best things in life don't start out with a lot of money. This is especially true in this particular instance. Keep up the great work! And thanks for giving us customers a REAL choice!
 Posted Mar 15 2009 07:52PM
In Regards to what edgar from Las Vegas had to say. I work in a shop that has been in business for almost sixty years and word of mouth provides it with alot of business. But at the same token we have 4 or 5 DRPs and obviously it brings in alot more business. So its not about shops selling out! Its about the bottom line....and that is making the dollar!
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