Industry Advice Ask Mike: Are Shops Truly Benefitting from Their OEM Certifications?

with Mike Anderson

This month, we “ASK MIKE” to share his thoughts on the current state of OEM certifications in the industry. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a future issue.

Hammer & Dolly: Based on your experiences as an industry consultant, what is the current state of OEM certifications in the collision repair field? Are shops seeing the ROI they expected from achieving that designation? If not, why are some certified shops missing the mark in making the programs work for them?

Mike Anderson: When you look at OEM certifications, you need to break them down into two groups: The ones with restricted parts sales and the ones without. Shops in the first group see a huge ROI mostly because of those restricted parts sales. However, some shops may have made the investment but haven’t seen as many vehicles come to their door as they had anticipated. That situation has made some of them wonder whether they made a mistake in pursuing the certification and question whether they should renew it. It could be a matter of some areas being flooded with OEM-certified shops, but it’s also a matter of some shops not having a plan beyond just expecting work to show up. Certified shops need to market those certifications.

While doing research for an OEM, we at Collision Advice discovered that less than 40 percent of its certified shops had that OEM’s logo on their websites. About half of the shops that did have the OEM’s logo on their website violated that OEM’s logo requirements for size, font, etc. We also found that some shops that claimed not to be seeing a return on their investment also weren’t mentioning their certifications when they answered their phones. When we ‘mystery called’ over 200 OEM-certified body shops, only 10 percent mentioned their certifications. Most of them just asked, ‘Are you going through insurance?’ and started straight down that path. It’s a mistake not to mention your certifications.

H&D: That sounds like a massive missed opportunity, especially when these facilities invested so many resources to become certified. What are some other ways that OEM-certified shops should be marketing that status?

MA: Again, work isn’t just going to show up for you, so OEM-certified shops need to build relationships with dealerships. Some shops will say that the dealerships in their area already send work to someone else, but that’s why these shops need to educate the dealers on the value of sending work to them. A big part of that is letting the dealership know that you’re going to buy OEM parts from them and not lean on them for price matching. You could also let them know that you’re going to refer customers to them for calibrations and safety inspections. Maybe refer total losses to them so they can sell more vehicles. It’s all about building relationships with them and demonstrating that you can bring them value.  

If you’re OEM-certified, contact the car clubs in your area and offer to host an open house for them. Educate them on the differences between OEM and aftermarket parts. Scan their cars with OEM tools and point out anything that may be wrong with their vehicles. Educate them on safety inspections. The whole point of marketing is to let people know who you are before they even wreck their cars.

H&D: Do you ever see a time when OEM certifications will become a true alternative to the more traditional shop-insurer partnerships we’ve been seeing for decades now?

MA: Obviously, the shops that are certified by high-end luxury OEMs that restrict parts sales feel they can have a more educated consumer and get reimbursed more fairly for safe and proper repairs. When you look at OEM certifications, you need to look at the benefits that come with them beyond getting customers. A lot of OEMs have great hands-on training – and that’s incredible for shops. Toyota and Lexus, for example, have some of the best training available in the industry. BMW has Service Technician Education Programs, or STEP, which help address the technician shortage. Certified facilities are also placed in shop locators. There are a lot of benefits, but you also must be willing to put in the time to research those benefits.

Am I saying that all OEM certification programs are created equal and that all of them present value? No. Some are on the very top tier, others are on the lower tier, and some are in between. Also, I would be 1,000 percent remiss if I didn’t mention that not all shops are doing the same standard of quality repairs, OEM parts, and safety inspections. However, based on my understanding, there are several OEMs that are working to raise the bar. 

H&D: Where are the OEMs’ checks and balances to ensure that the shops that do carry their logos and do share their names in marketing are living up to what those things suggest?

MA: Some OEMs take their programs to heart. I know of a dealership that called an OEM and said, ‘Hey, this certified shop is 60 days behind on paying its parts bill.’ That OEM removed that shop from the program. I know of another OEM that has removed nearly a dozen shops from its program this year. Some OEMs will take action when issues are brought to their attention. Others don’t do it as well, and the industry largely knows which OEMs fit into which category.  

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

Want more? Check out the September 2024 issue of Hammer & Dolly!