One Mission Viejo, Calif., -based collision repair shop has leveraged its deep knowledge of Mercedes-Benz automobiles into a successful niche business. Prestige Auto Collision was recently named a Certified General Collision Facility by Mercedes-Benz USA, one of only a handful of independently owned auto repair shops in the country to receive this designation.
The secret to this partnership was forging a key relationship early. When Bernie Gates, the son of an automotive body repair shop owner, opened Prestige Auto Collision in 1984, the 10,000-sq.-ft. shop had just 20 bays and one paint booth. Still, he managed to take in $70,000 his first month of business mainly as a result of referrals from a local dealership, Mission Viejo Imports—now Mercedes-Benz of Laguna Niguel.
Gates explains, “I went to the Mercedes dealership in town—and I knew they were having a lot of problems with the body shop they were using—and I asked them to give us a try. They did, and it kind of took off from there. We’ve been doing their work ever since.”
Specialization may have helped in the years since—and it’s certainly responsible for a large percentage of the $9 million in annual sales revenue, boosted by similar relationships with local Infiniti and Audi dealerships—but it doesn’t explain the shop’s initial success. Prestige Auto Collision owes its strong beginning to Bernie’s belief in quality work and solid customer relations. “Back in ’84, I was doing most of the body work myself, so I was just a very quality-oriented guy,” Gates says. “When you’re small, you can really put your thumb on every little detail on every car. That’s what made the business grow.”
Today, the thriving 80-bay collision repair shop contains all the Mercedes-Benz-authorized equipment necessary for its niche business, but equipment is only part of the equation. To qualify for certification, Prestige had to meet rigorous standards for technical expertise and service, which had to be prompt, dependable and professional. Gates says he’s been able to achieve a top-notch level of service by cultivating a loyal, well-trained staff. “It’s their pride, too,” he says. “We include them in everything that we do in service. We keep them up to date about how the company’s doing—if it’s growing. We talk to them as a family. We sit down and ask them for ideas. We keep them involved in what’s going on. The guys really look out for the company, and that’s a great thing.”
In exchange for their loyalty, the technicians receive top-of-the-line training, especially in Mercedes vehicle repair. Part of the shop’s ongoing relationship with the automaker involves continual training by Mercedes-Benz technicians. Whenever Mercedes unveils a new model or updates a current one, technicians have to learn what new components or electronics are involved. “Mercedes is a very active company,” Gates says. “They don’t charge you for the training at all. The training is free—you have to pay your guys for going out there, but the actual training is free. They want people to know the right way to fix their cars.”
In the past, Gates had to send his technicians to Mercedes-Benz USA’s New Jersey headquarters, but today, technicians come to California for personalized on-site training sessions. One line of vehicles receiving lots of attention right now is the Mercedes CL class of automobiles, a hybrid vehicle combining aluminum quarter panels and steel floors—which results in a significant weight reduction (as much as 800 pounds). Technicians at Prestige Auto Collision are undergoing training in CL class repair, which should eventually lead to a higher certification for the shop as a Mercedes-Benz CL certified collision repair facility.
In the meantime, Prestige is taking advantage of greater access to the depth of product knowledge at Mercedes-Benz headquarters. “Being a factory-authorized repair facility, we have direct access to the factory if a problem arises,” Gates says. “In the past, by the time [a phone call] got back to you, it went through three or four people. Now, with this [arrangement with Mercedes-Benz], it’s a direct link to the factory. We can talk to the factory rep and find out what’s going on.” As a Mercedes-certified facility, Prestige also has direct Internet access to the factory, which means less time spent tracking down representatives to answer pressing technical questions.
But perhaps the greatest benefit of specialization is the built-in marketing tool represented by the Mercedes-Benz name. “Obviously we get the prestige of being a factory-authorized, independently owned body shop—that’s something that not many independently owned body shops can say,” Gates says. “It helps when dealing with other customers that they understand the quality of the facility. You don’t really have to sell your customers on how good a job you’re going to do on their car.”
Reinvesting in the business
"For so many of us who have been in the business for so long, we forget how traumatic it can be for someone who’s without their car,” Gates says. So in order to reduce repair times and get vehicles back to their owners
in the best possible condition as quickly as possible, he invests in state-of-the-art equipment.
Some of the advanced equipment in use at Prestige Auto Collision are an electronic measurement system, a wash rack with a built-in filtration system to combat California’s hard water, and an alignment rack, which Gates says “makes it a lot easier to troubleshoot suspension damage.” But Gates has invested in another area of business that sets this repair shop apart from its competitors—an on-site mechanical department.
While other collision repair shops might sublet their mechanical work, Prestige does its own. This not only increases revue, but also decreases turnaround time on the vehicles. “It’s more cost effective in every respect—not having to tow the car to another place,” Gates says. “Plus, if there’s a problem with an electrical component, the technician can walk it over to the mechanic’s station, plug it into the computer and fix the problem. Cars are getting more and more sophisticated. They have more electronics on them. You have to know what’s going on with them.”
