Page 34 - Australasian Paint & Panel March-April 2022

34
Industry Insights
PAINT&PANEL
MARCH / APRIL 2022
WWW.PAINTANDPANEL.COM.AU
SHEEN PANEL SERVICE
SITES 27
NUMBER EMPLOYEES 400 ESTABLISHED 1969
SHEEN IS A UNIQUE PROPOSITION IN THE
industry in that it is a semi franchise - although it does fall under the franchis- ing code. Unlike Fix Auto where the sites are wholly owned by the franchisee, the management at a number of the 27 sites has bought into the business to the tune of whatever it felt financially comforta- ble with. This of course gives them the much valued ‘skin in the game’ that many of the MSOs can lack. That Sheen’s business model is sustainable cannot be argued — 53 years in the industry speaks volumes. The second generation of man- agement is now at the helm — founder Martin Stone and Stone’s partner Blair Denys have two children apiece working in the business. We spoke with Adam Stone who is the general manager over- seeing all 27 branches, and operations manager James Black.
“When we look at new franchisees each one is judged on their merit. Not everyone wants to be financially invest- ed, they may simply want to manage a site,” says Black. “If they do want to in- vest we have to make sure they are a right fit for the business.“
Through careful planning and proac- tive measures the group has managed to navigate the severely challenging Mel-
Over the past five
years we’ve built a business development
management team that’s out knocking on doors and we’re really reaping the benefits of that.”
bourne trading conditions through the long and frequent lockdowns. They were prepared for the worse when the worst transpired. Before COVID-19 shots were mandated, they had offered each employee $100 to get vaccinated and so managed to keep most of their team.
Sheen has an apprenticeship program and currently 40-45 apprentices. The plan is to have at least two apprentices in each location and to have school- based apprentices to ensure the next generation of techs and managers. The company has a dedicated apprentice program manager Tony Todaro who communicates with schools and TAFE institutions. Every apprentice is provid- ed with a toolbox when they start, and they are paid above the award. They also receive a bonus at the end of each completed year of their apprenticeship.
Black says: “We’ve had great success with apprentices who have then quali- fied. They might work on the floor for a bit and then step quickly into a manage- ment position. We have one outstanding fourth year who we promoted to a store manager even before he qualified.”
Black says that as well as bringing on
the next generation they are focussed on keeping the staff they have. “Staff are hard to replace - you have to offer them Friday lunches and incentive programs. If they need support, be it with mental or health issues, we do what we can. Because of that we have a many staff who have been with us for a very long time. I think the family aspect of the business means we always want to stay close to our team.”
The core values of the group are quali- ty, customer care and teamwork. Hand holding the customer throughout the pro- cess, providing replacement vehicles, keeping them updated - in short repairing the car for the customer. This customer focus translates into high Google ratings.
In terms of network development Sheen Panel Service feel that have Melbourne metro pretty much sewn up. “We don’t have an aggressive acquisition plan, we look at every opportunity as it comes. You have to consider staffing issues and the demographics of the area,” Stone says.
“We do try to acquire pre-existing shops that we know have been a good business over the years. We have built one or two greenfields over the journey but the goal is to buy a business that has a reputable name. With all the zoning restrictions, as Melbourne continues to grow, those opportunities are less than they once were.”
The latest site has just opened in Drys- dale in regional Victoria.
“The size of the shop is also very im- portant to us— 7-800m2 is really as big as we go. We don’t want to bite off more than we can chew and our business model isn’t based on high volumes. As my father al- ways said, ‘You don’t want to be washing too many cars at the end of the day’.”
As well as keeping the branches inten- tionally small by today’s workshop standards, Sheen Group doesn’t rely on one income stream.
Stone says: “My father has always im- parted to me over the 22 years I’ve been in the business - never put your eggs in one basket. We have a very nice spread of work across private and insurance re- pairs. Over the past five years we’ve built a business development manage- ment team that’s out knocking on doors and we’re really reaping the benefits of that. Even with COVID conditions we’re on track for the largest turnover in our history.”
LEFT: Sheen Panel Service Packenham.
ABOVE: Sheen Panel Service Cheltenham.