MOTORVATION, BRIDGEND

The December 2001 edition of Bodyshop Magazine carried an article charting the success of bodyshop owner Julian Allen. The ‘Mr Motorvation’ article attracted a lot of interest from readers – some critical, some sceptical – but also from those who wanted more information on the programme that seemed too good to be true. Here we catch up with Julian Allen, who is now embarking on a £2 million expansion programme.

To be honest, I wasn’t too sure that I wanted the press exposure all over again after the slagging off I got from a few people last year,’ said Julian Allen, owner of Motorvation in Bridgend. ‘Part of me said “keep it all for yourself” but having met up with some of the people who read the original article and, as a result, had managed to improve their own business, I thought if what I have done can help my industry colleagues then I’m glad to share it. It also gives me the chance to explain some of the issues from last year.’
Whichever way you look at it, any man that contemplates putting his own house on the line as part of a £2m expansion plan in the UK crash repair industry must have something special up his sleeve or else be completely mad. Julian may not, fortunately, be mad but he says that not only has his business changed but he has as well. ‘A couple of years ago I would have described myself as a damn good bodyshop owner,’ said Julian. ‘Now I have no hesitation in labelling myself as a businessman. It’s not that I didn’t have good business sense before, it was just being lost in all the day to day problems of running the bodyshop. That has now stopped.’
So what happened? As you may remember from the December article, Julian went through what is now the Business Improvement Programme (BIP) from BodyShop Management Systems (BMS) using a unique combination of IT and a long-term managed implementation process. One of the key issues for Julian was to make Motorvation more successful and, at the same time, remain competitive and attractive to its work providers. As Alex Leonard, the current chairman of BMS explained, ‘The real success here is made possible by balancing the needs of the parties involved. Insurers have already come forward and publicly declared their interest in having healthy, profitable suppliers and forward thinking bodyshops who also appreciate that insurers are always looking to control costs. Anybody who only addresses half of this see-saw will end up in the mud.’ The BMS remit was to provide a system that delivered the fabled square egg that keeps everybody happy – a lower average repair cost delivered more profitably.

Profit not products
The last thing Julian wanted was a pile of new products dumped on him. ‘All I was interested in was the result,’ he said. ‘I couldn’t care less if the people were from Mars and the computers were bright green with pink spots, as long as it worked.’
The BIP has allowed Julian to accurately analyse the needs of his customers and then align his business to deliver the goods. As with many things in life, it has not been all plain sailing from day one. Bodyshops who have been through the programme nearly always encounter a similar problem – work supply.
The impact of the BIP in the early stages for Julian was that he effectively ran out of work every Thursday morning at 11am. The inflow of work to his business remained fairly constant although now he was processing it more efficiently. This explains why the 12 month projection printed in the original article shows a two man drop. ‘I wasn’t happy with that, so I used the time that the programme gave me to go out and market myself to fill the gap,’ said Julian.
Julian produced some serious marketing material including radio advertising. He also made the effort to go and personally see potential work providers, not ‘cap in hand’ but with a professional business case. BMS makes no guarantees of work supply at all. However, bodyshops that are able to process work cost-effectively and efficiently are going to be more attractive to work providers.
‘As a result, I managed to successfully negotiate with a couple of new work providers and today Motorvation consistently turns out over five weeks work for every month,’ added Julian. ‘With even more work available to me you can see why I have decided to expand the operation.’
Another aspect of the programme looks at repair methodology and focuses on the most cost-effective way of completing the job. This is not just for the bodyshop but takes into account the needs of all parties. ‘I am fortunate enough to have a chunk of work with no parts discount and, while the parts profit is okay, it does not compare to the 65-70% GP that is available on labour sales. The real-time TRIM system makes sure that the shop floor remains under control and I suppose the old saying is true – look after the pennies and the pounds will take care of themselves.’
Buying and selling time is Julian’s core business and that includes his own time. In Julian’s opinion there is nothing more valuable than the time it takes to manage rather than cope in any business. ‘Motorvation now has a highly structured growth strategy that is founded on the resources available in this industry today,’ said John Driscoll, managing director of BMS. ‘Many bodyshops, including Motorvation, cannot be blamed for their hopes and wishes. Obviously Julian would like nothing more than £50 per hour the same as any businessman would. However, until that day comes, it is vital that the industry controls every cost and employs as much new thinking as possible in order to move forward. After all, if the old thinking was so great why are we in a mess?’

Restrictions
John Driscoll has spent nearly all of his working life in the crash repair industry and understands the problems and restrictions of the market. ‘When I first met John and his team, it was like me talking to me,’ said Julian. ‘Except this time I was listening. What I liked about the BIP programme was the fact that it was a long-term and sustainable managed process. Not just “deliver the kit and clear off”. John was quick to point out that this was a partnership. I was expected to commit and not to just sit back and expect it all to fall in my lap.
‘The initial period was a bit of a nightmare but then it all began to take shape. In any case, if someone gives you a proposition based on having a vastly improved bottom line then I’m up for the pain. I also had the comfort of knowing that if it didn’t do what it said on the tin then I could have my money back. I like deals like that. There were also some good spin-offs such as higher staff morale and I know everyone is excited about our expansion plans. The only downside so far is the 20 pounds in weight I’ve put on!’
Like all bodyshop owners, Julian realised that there were always going to be things outside of his personal control. ‘It is what you do with what’s left over that makes the difference,’ said John. ‘Working smarter with the resources you have makes a lot of sense and sometimes the commitment and the discipline created when you work within a managed programme are the magic ingredients. It’s possible that some of us can be too close to the problem to see the solution.’

Experience
‘I admire Julian,’ added John. ‘Not just because of his success but also because he has allowed others to share his experience. Not everyone would be willing to do that once, let alone twice. His story was well received by insurers as well as bodyshops where the Motorvation story has triggered the “well if he can do it then so can I” response. Julian is well aware that most
repairers would like a substantial rate increase but, for now, will have to make profit from controlled costs and volume. I also like the way he is prepared to take his tie off and get stuck in on the shop floor controlling workflow. After all, you do need to understand the machine that makes you money and a little time spent checking under the bonnet always pays dividends.’