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PLAYING IT COOL
The total air-conditioning parc has grown by over one million vehicles every year since 1998, presenting bodyshops with a potential opportunity to earn extra income by bringing repairs and servicing in-house. James Simons reports on the pros and cons of investing in this area.
Air-conditioning is likely to provoke a cool reaction from bodyshop owners. According to results in the Bodyshop Industry Survey 2004, over 50% of respondents outsourced the service, while only five per cent had invested in new equipment.
One reason is that air-con servicing and repair is often seen as technically demanding and complex, requiring dedicated tools and specialist skills. But as James Onions, Autoclimate’s Marketing and Analysis Manager, points out, ‘Today’s modern air-con equipment is not only automated but also extremely user friendly, and bodyshops who continue to outsource air-con work are missing out on excellent profit opportunities.’
Brian Crawford, Business Development Manager, Sun Diagnostics, echoes these sentiments. He points out that an evacuation and recharge, which typically costs £75, may only take 30 minutes to complete. ‘My advice is to keep the work in-house. What is the point of letting somebody else make money from it? With training courses, information, parts support and advice, it is very easy for a bodyshop to move into air-conditioning repair.’
Another major advantage is control over the work. In a situation where a subcontractor is used, the liability for the work undertaken remains with the repairer. Consequently, in the event of poor workmanship, the repairer will almost certainly incur further costs rectifying the problem.
As Kevin Brown, Product Manager at Valeo, explained, ‘If a system is damaged in a collision, it is unlikely that lost refrigerant and lubricants are going to be put back in. This means the car has insufficient lubricant in the air-con loop, which will quickly lead to compressor failure and may result in the car being returned for additional repairs.’
To capitalise on air-con work, repairers need to grasp the importance of becoming more proactive when the car is in the bodyshop. For example, many repairers fail to estimate for the receiver drier or accumulator when they fix an air-con system. ‘It’s very important to include this component at the assessment stage because if the system is breached in an accident and has lost its refrigerant, air and moisture can cause a range of serious problems,’ James Onions added.
Capital investment
So what sort of investment is required? Depending on the type of package, repairers can expect to pay anywhere between £2,500 and £4,000 for a fully automated air-con system. This includes accessories, on-site commissioning and training. Optional one-day courses in diagnostics and electrics are also available. Priced at £95 +VAT, these can lead to a City and Guilds qualification.
‘There is always a trade off between understanding and cost of equipment,’ explained Walt Koloska, Sales and Marketing Director at Crypton Technology. ‘The fully skilled fitter can use a simple fluid pump, bottle and scale to do most jobs, while the conversant but inexperienced technician would need a fully automated air-con server.’
Despite this, outsourcing is still a popular choice. Steve Angell at Aircool is not convinced that repairers need, what he terms, ‘the aggravation’ of having retail customers coming to their premises for air-con work. ‘Air-con work is not as straightforward as it once was as many systems are now linked to the engine management control unit. This requires specialist equipment and attention, so I suspect that as an income generator it’s not a good idea.’
Another reason for outsourcing is the perceived level of physical danger involved. ‘Refrigerants ‘boil’ at –26.5 0C, so if you get liquid refrigerant on your skin it will burn,’ Steve explained. ‘Even more serious, if you disconnect the system under pressure and get it on your face, at best it’s going to damage your eyes, at worst it’s going to blind you.’
Basic product knowledge is essential in other areas too. Reports of a R134a refrigerant shortage are not totally unfounded. With two main producers switching production to make industrial gases for fridges, suppliers are warning of a summer shortage. And, although viewed as a short-term problem, customers are being advised to stock-up or re-assess their distribution network.
But perhaps the main consideration for anyone thinking of investing in air-con is whether it’s cost-effective. Once this has been determined, a repairer ‘should try and look beyond any initial purchase costs and think ahead’, James Onions concludes. In doing so, the opportunity exists to earn extra income, gain control over the work and limit the number of warranty returns.
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