Shop Profile: Geweke Collision Center

Jan. 1, 2020
Some of the most successful business people are those who look for opportunities to combine separate lines of business to create the proverbial “whole” that is greater than the sum of its parts. One entrepreneur who has gotten excellent r

Some of the most successful business people are those who look for opportunities to combine separate lines of business to create the proverbial “whole” that is greater than the sum of its parts. One entrepreneur who has gotten excellent results from this strategy is Larry Geweke. In addition to co-owning nine auto dealerships, and hotel and real estate development operations, Geweke is co-owner of Geweke Collision Center of Marysville, Calif., which he views as one of five key profit centers for his auto-related operations in that city.

SNAPSHOPName: Geweke Collision CenterLocation: Marysville, Calif.Size: 10,000 square feetEmployees: 15 Volume: 200 vehicles per month “Our objective as a dealer group is to absorb expenses with parts, service and the body shop and our used car department,” says Geweke. “That way we can absorb our fixed and selling expense so we’re not dependent on our new car business to be successful.”

Geweke and his father acquired the Marysville collision business, which at the time was housed inside a Ford dealership, in 1986. Several years later, the father and son built a new facility to house the collision business. This move was critical to enabling the body shop to reach its full potential, Geweke says. “We wanted the body shop to be separate because it looks more like an independent operation that can handle all makes and models.” Although the body shop gets some of its business through the Ford dealership and through a Kia dealership that the Gewekes also own in Marysville, Geweke notes that “you don’t tie yourself to the franchise.”

Today, Geweke wouldn’t have it any other way. “There’s a real disconnect between auto dealerships and body shops,” he says. Noting that a body shop may need to take in as much as $2 million a year to be profitable, he says, “You almost have to have the body shop outside to be successful. It’s hard to do that when you have just a few stalls next to the service department in the dealership. You have to make the leap of faith and really go for the business.” Geweke and his father have used a similar approach in Lodi, Calif., where they own several car dealerships, including one that came with a collision business, but which is now housed separately.

Because Geweke and his father are involved in so many businesses, however, it has been critical for them to have capable managers to focus on specific profit centers. In Marysville, the job of overseeing the body shop and the mechanical parts and service business, which is housed within the Ford dealership, belongs to fixed operations director Brad Guynes.

Guynes, along with body shop manager Ryan Yartz, are critical players. “Frankly, it’s a difficult business,” says Geweke of the collision repair business. “The margins are so razor thin that you have to really manage the people and the quality of work has to be nothing but first rate. Comebacks and poor quality of work are things that you just can’t tolerate. We made a commitment to keep everything state-of-the-art when it comes to tools and equipment.”

Guynes describes his job as “controlling the profitability of each department and working with the managers of each department to make sure people are successful.” One technique that he’s found effective for controlling costs is to designate an employee to control shop supplies. People know to work with that employee on any supplies they need so that materials already on hand can be re-used where possible, Guynes says.

Enlisting the support of all employees through a bonus program also has helped cost control efforts. Each month the shop has a potluck luncheon and employees get a chance to throw darts to win a cash bonus. The number of throws that each person gets depends on how successful the shop has been in controlling expenses for that month. Employees can win anywhere from one to $100 on each throw. “Everyone is involved, from technicians to estimators to the parts guy,” Guynes says.

Yartz’s efforts have been particularly helpful in making the shop more efficient, adds Guynes. “Ryan brings a lot of experience in getting the right job to the right guy so that a job makes it to the paint department at the right time,” says Guynes.

Another unique feature about Geweke Collision Center is its towing business. The company currently is on rotation lists with the California Highway Patrol and the Marysville Police Department to be called in the event of accidents or breakdowns.  The towing business, which comprises between 10 and 20 perecent of Geweke Collision revenues, is supported by three trucks, which are available 24 hours a day. “When we tow someone in, the majority of the time we get the repair business,” says Guynes.

Geweke Collision is currently on direct repair programs for two insurance companies, which generate the majority of the company’s business. The company would like to get involved in more DRP programs and, with that in mind, recently enlisted an independent salesperson to help achieve that goal. As for future plans, Geweke says he’s not planning anything specific. But, he says, “We’re always interested in expansion and growing. We have a saying, ‘When you’re green, you grow. When you’re ripe, you rot.’”

About the Author

Joan Engebretson

Engebretson is a former editor-in-chief of America's Network. She has covered the communications industry since 1993. In 2002, she won a national gold award from the American Society of Business Publication Editors for her columns. Previously, Engebretson was the editor of Telecom Investor, a supplement toAmerica's Network.

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