News

Collision on Wheels (Mobile Collision Body Shop) for Car Dent, Paint Repairs

May 1, 2006

Sixteen years ago, body shop owners John Maio and Lou Mancina noticed that some local car dealerships seemed to have a need for minor paint repairs, but didn't want to deal with the time and expense of taking the cars to a collision repair shop. Always looking for ways to expand their business, Maio and Mancina began experimenting with ways to perform paint touch-up at the dealerships.

There are several companies offering mobile collision repair operations, such as minor touch-ups using airbrush technology.

Since then, their Collision on Wheels business has expanded by leaps and bounds. The company, which primarily services auto dealerships in the Detroit area, now operates seven mobile units (in addition to the shop) and has just begun franchising its business through a partnership with Automotive Franchise Systems. The company currently works with 50 dealerships and services between 750-800 vehicles per month. There are several companies offering mobile collision repair operations, such as minor touch-ups using airbrush technology.

Mobile paint repair businesses, like mobile detailing services, have been springing up across the country in the past decade as more customers look for convenient ways to maintain their automobiles. Busy car dealerships, in particular, have embraced the concept as a fast, affordable way to keep their vehicle inventories looking good without the inconvenience of moving the cars off the lot.

Because of the small amount of paint used in mobile repairs, overspray isn't usually a problem.

While a few body shops have begun to offer mobile paint repair services to provide a new source of customers and revenue, most of the companies doing field-based paint touch-up are a mix of standalone operations, services offered through mobile detailing or dent repair companies, or franchise businesses. Because of the small amount of paint used in mobile repairs, overspray isn't usually a problem.

"It's an avenue that the average collision person can get into without the investment needed to buy a body shop," says Lou Mancina, president of Collision on Wheels. "You can go to the customer. You're always looking and on the move for more clients. You have access to a hundred times more areas to make money."

Mobile paint services can provide a new revenue stream to existing body shops, since many of the retail customers would probably not bring their car to the shop for this type of minor repair work, and dealership customers can provide volume contracts.

"This system would make a nice tuck-in for an existing collision guy," says Greg Longe, president of Automotive Franchise Systems, which is helping Collision on Wheels expand its services in the U.S. "People want to expand and develop other profit centers."

Collision on Wheels already has two franchisees in Michigan, and is launching a nationwide franchise operation this month. Potential franchisees have to complete a three-week training course that involves marketing, financial management and computer training, as well as a week of hands-on training on the paint systems. Collision on Wheels also spends a week helping them develop a route, visiting car dealerships and working out a residential plan.

Body shop owners interested in mobile paint work would be entering a highly competitive market that requires a different set of marketing skills, a different approach to customer service, different spray equipment and even different techniques based on the weather and temperature. There is also a patchwork of environmental regulation across the country, so owners would need to make sure they are compliant with local emission restrictions and waste disposal laws.

At-your-door service

By far, the largest consumers of mobile paint services are automotive dealerships. Most of the mobile paint businesses in the U.S. either work exclusively for dealerships, or bring in the lion's share of their business from these contracts.

For dealerships, there are clear benefits: there is frequently a cost savings on the repairs, as well as a time savings because dealership employees don't have to drive the vehicles back and forth to the repair shop. Just as importantly, the car stays on the lot where customers can still see it, examine it and buy it.

Retail business is increasing, however. Convenience is an obvious factor; most of these minor repairs can be done in the customer's driveway, or while they're at work. Repairs are relatively inexpensive (ranging from $125 to $175 for most jobs), and customers save paying expensive insurance premiums and having their rates go up. The final results are also much better than the gloppy bottle-and-brush touch-up kits available to consumers.

Equipment

Equipment investment for a mobile paint operation can range from $10,000 to $15,000, depending on the type of technology being used. That's on top of the cost of a van or truck, and any franchise fees that might be required. Collision on Wheels plans to offer franchises that range from $60,000 to $90,000 (which includes all equipment, training and fees, as well as working capital). An Aero-Colours franchise ranges from around $57,000 up to $165,000 (including all equipment and working capital).

Most of these companies use airbrush equipment or high-volume, low-pressure (HVLP) spray guns to repair chips, scratches and scrapes. Color mixing and matching systems are typically the same as in a regular body shop, but with smaller quantities of paint being mixed. Because of the small amount of paint involved, overspray is seldom a problem.

At Collision on Wheels, Maio says employees typically isolate the car being worked on at the dealership, depending on the preferences of the customer. "It's not an issue with the way we train and the way we are set up," says Maio. "It's a very low volume of air and a smaller repair."

The Collision on Wheels system includes all basic colors and tints, and has the ability to mix more than 500 colors. Maio says his employees typically only mix around three to four ounces of paint at a time. They also have professional touch-up pens for minor scratches and chips. Each van is equipped with a 5HP generator and a 30-gallon tank, as well HVLP emission-free spray guns.

"It's a body shop on wheels, condensed down into a format of a truck," says Mancina.

Environmental

Environmental standards that would affect a mobile paint operation vary around the country. Although quantities and emissions produced are very low, paints and solvents will probably have to be disposed of in the same way a regular body shop would dispose of them.

"It's really up to the local area," says Ron Joseph, principal at Ron Joseph & Associates, an environmental compliance consulting firm. "You may be allowed to use an airbrush, but not a conventional spray gun in some areas, for example."

Laws vary from state to state, but even in California, which typically has some of the most stringent pollution control and licensing requirements in the United States, mobile paint operations typically aren't producing enough wastes or emissions to be of much concern to regulators.

Licensing requirements also vary by state. Shops interested in taking their paint shops on the road should check with local environmental and pollution control authorities to determine whether the mobile business will require a separate license, and check on pertinent emission and disposal requirements.

In Minnesota, for example, businesses that generate 220 lbs. or less of hazardous waste per month are considered very small quantity users, and can transport their waste themselves to a collection site. If they use less than 200 gallons of volatile organic compound-containing materials in a 12-month period, they may not need a permit. Virginia exempts some "touch-up" work from regulation, but it's not inherently clear in the statute whether touch-up work using an airbrush also would be exempt.

According to Longe, once Collision on Wheels goes nationwide, his franchise management company will provide environmental regulation guidance, the same way it does for his other businesses.