Page 28 - Australian Paint & Panel March-April 2020

Group Chat • Fix Auto
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PAINT&PANEL MARCH / APRIL 2020
FIX AUTO – FRANCHISE
STUART FAID FROM FRANCHISE MODEL FIX AUTO STARTS OUR INTERVIEW WITH A VERY PRAGMATIC VIEW ON THE INDUSTRY AND SPECIFICALLY THE AMA GROUP.
“I FULLY APPRECIATE WHAT AMA HAVE
set out to achieve in the industry in terms of consolidation. If you look at the collision industry from the insurers’ per- spective it’s a massively complex busi- ness. It’s full of inefficiencies, hugely fragmented, it requires masses of re- source to manage it effectively and in a way that gets the job done, while keep- ing customers as happy as possible dur- ing a very difficult experience. It’s a train wreck of a process, so I am a big fan of anything that creates more trans- parency, simplicity and efficiency for all of us in this space,” he says.
“Where Fix Auto sits in that process is trying to deliver the benefits of consolida- tion in a way that preserves the heart and soul of the industry. The industry comes from a place of entirely independent busi- nesses, typically family owned, often passed down through generations. These businesses are employers in the commu- nity and contributors to the local econo- my. They are the mainstays of commerce in their individual spaces. There are few- er and fewer of those industries left, a hairdresser may be one of the last few in-
dependent retailers left in some commu- nities. A perfect example of consolida- tion outside of our industry in an unusual space would be the dental industry, small privately owned surgeries, now becom- ing part of a unified network because where there is a process behind a service that is massively complex- it cries out for consolidation. We are not unique in the collision repair industry.
FIX AUTO PHILOSOPHY
“At Fix Auto we ask how do we give the customers – work providers – all of the obvious benefits that consolidating brings whilst retaining that independent repairer network base? I am constantly told that an independent repairer that is invested in the business and the com- munity and engaged with the customer base is more focused on
customers we don’t want the burden of those costs passed on through our premi- ums, so we expect insurers to innovate and look for ways to be competitive. So, for us, it’s about achieving that utopian sce- nario where you can have all of the quality outcomes from the focused family busi- ness but we provide all the back up, report- ing and infrastructure. We believe we offer a ‘best of both world’s proposition.”
The network has 14 franchisees in four states with three more in the pipe- line. What’s the magic number to be looked upon by an insurer as a solution?
“I used to think it was just about the numbers but now I think its equally about addressing insurers’ specific geo- graphic challenges and ensuring your value proposition is a solution to those challenges.” Faid says.
quality outcomes and customer satisfaction
I see Fix Auto as the guardians than perhaps a large of that last remaining
type of business might be.
corporate chain of an independent repair body both in
y
That’s why people will use lo- Australia and globally.” cal retailers – because they
have a real passion, which we
believe delivers greater customer experi-
ence outcomes. Somehow you need to unify those businesses.
“I see Fix Auto as the guardians of that last remaining independent repair body both in Australia and globally. We have to accept that the only way we can continue to function as an industry is by creating greater transparency and trust between all parties, driving efficiencies and looking for economies of scale. These are things that independent re- pairers struggle to do on their own.
“It is also unreasonable to expect an in- surer to have to try and resource their business and carry the cost of that re- source to manage upwards of 100+ indi- vidual repair contract relationships. As
“To date, we have been more success- ful in non-metro areas. I think because there is less volume overall, so they have to work harder to run a profitable busi- ness. A lot of what we do with them is around managing their performance, driving efficiencies, driving capacity, in- creasing profitability.
“Our offering is not the golden egg of more volume. We help them get the best from their business and optimize their performance. And as we have grown and our share of voice in the industry has grown we represent our network as a uni- fied body, as a solution for insurers. It’s about finding out where the work provid- ers have a need geographically and mak- ing sure we have a presence there.