Fix Network CEO Steve Leal approaches the massive amount of change in the automotive industry with a combination of passion, insight, determination and even humour.
At the core of his leadership of the network, however, is the belief that disruption presents an opportunity for growth for the best businesses.
From its beginning, Fix Network’s purpose has been to offer growth opportunities for individual businesses. As Steve Leal explains, the experience and insights gained from a global network across the world are directly applied to how they adapt and thrive under changing market conditions.
“We wanted to create a franchise system that gives them the tools to let them know, whether they are performing well, and at the same time, identify best practices,” he says. “And ask, ‘Can I leverage the marketing strategy to be part of something bigger?”
The strength in the network not only boosts individual business but gives them collective strength, he says.
“At the same time, we want to provide a way for them to compete against the growing trend of private equity and public money coming in and buying shops. We’ve seen this in other markets, particularly in North America and the US, where private equity is buying a lot of the body shops, leading to significant disruption. However, within that disruption lies opportunity.”
“I think some independents now ask, ‘How do I compete against them? As a sole business, I want to stay in business and remain a part of the community.’ When you think about it, small businesses are still the backbone of the industry.
“There’s a way for them to compete against the trend, and we’re committed to being part of that, while also giving back to the community,” he says. “We’re supporting entrepreneurs in managing their business and pursuing new opportunities they might otherwise miss. Our goal is to help our franchisees achieve a level of recognition where even insurance company executives, who may not yet know them, take notice.
“Being part of a bigger brand, allows us to negotiate better deals, ensuring it’s viable for the shops. We provide them with buying power, enabling them to access better supply and purchasing terms. While we manage the relationship, it also offers them a valuable new marketing advantage operationally.”
The network’s philosophy is centred around using this as a foundation to thrive.
“Another key aspect we manage for them is helping create a platform for their own growth, enabling them to potentially expand and own two or three additional shops.’
Wider perspectives
Leal is fond of an expression, ‘You don’t know what you don’t know’ and believes that the day-to-day running of a workshop can often keep an owner focused on the immediate, causing them to miss the broader lessons of the industry. However, the global network can bring a unique and expansive resource to support each individual shop.
“The operations team can highlight the best ways to run your shop and the key metrics you should be focusing on. We are the only organisation to be able to make a benchmark from over 20 countries, which gives us a unique, true global scope in our view of repairs. For instance, if you fix a Corolla here in Melbourne, this is the repair standard. But what is the standard in Canada, United States, Germany for instance? A Corolla is a Corolla wherever it is so we can identify what are the good metrics on changing that fender and making sure what is the right price or the cost.”
Forward thinking
The collective knowledge within the group is proving to be enormously beneficial, especially when it comes to adapting to changing technology, such as the advances made in AI and its role in assessing and helping shops manage front-of-house processes.
“The company can ask, how do we harness this? How can we get ahead of the curve and test new products, and ensure we identify the right viable solutions and products that work in specific countries? We learn from it in one market and apply that knowledge to other countries.”
This approach is also helping the network adapt to other changes such as the advent of new drive trains, including EVs and hybrids. The global experience helps inform and further support local members as they navigate these shifts.
“We originally built three training facilities in Canada, where we house all the necessary equipment, and we’re testing new products and materials. We’re conducting research and asking questions like, ‘Does this calibration system work? What is the car parc? We buy the equipment and test it in a real-world environment.”
This goes beyond simply recommending equipment, it provides neutral test data that individual businesses, often too busy to gather themselves, can rely on.’’
For Fix Network this includes a training curriculum that aligns with global OEM standards, with training facilities expanding into the US, Saudi Arabia and potentially Australia in the future.
Adding value
Leal also points out that the effort and development Fix Network members pour into their own businesses over the years not only helps grow their individual operations but also increases the overall value of the business, which is crucial for any succession plans.
“It’s unfortunate for a shop owner who spends twenty years building their business, only to find and at the end of that time when they’re ready to sell it’s worth nothing. I’ve seen it countless times – people are only able to sell the assets, versus selling the business itself,” he says.
“But if you are part of a brand, at the end of that twenty years, you’ve built a business. The franchise model gives you that opportunity. We’ll be able to sell that franchise location because it will have real value.”
Family of brands
At the same time, Leal acknowledges the pride in ownership and the links to their team and community, which are a powerful force in the repair industry. The Fix Network model seeks to retain the best of these qualities.
“But the difference is, by empowering an entrepreneur, he’s the local operator, he’s going to care for the business, and when you have a local operator, and what I’ve seen is proof, the customer experience is better because they have skin in the game.”
“If you look at our Fix Network, it’s a family of brands,’’ he says. “We really embrace the family dynamic, because we’re all independent operators, we’re all part of the same family, and we encourage them to work together.
“The great part about being a family is that you can rely on others in different towns. You’re not competing against someone in your town – you own that territory. And if an issue arises, you can work with your family members in the country to resolve it.”
“When we have a global conference, franchisees have the opportunity to meet and connect with other family members across the globe and I think that’s a unique experience.”
Change for the good
One of the key qualities Fix Network looks for in members is an openness to change and continuous improvement, Leal says.
“If you never change and you operate in the exact same way, over time, you’ll eventually realise you have diminishing returns.
“I view these disruptive factors as opportunities to improve the quality of the industry as a whole. By investing in training and upskilling, you provide better opportunities for the entire ecosystem.”
The consolidation of the industry overseas, where it has progressed at various levels, is one such disruption and Leal welcomes its possibilities for improvement. With the global knowledge Fix Network has gained from this development, and the support they offer, he believes it can open the door to success for business owners who are agile and open to change.
“I try to teach people that you need to change when you’re at the top,” he says. “As humans, we’re too reactive, especially in this business world. If you’re changing just because there’s disruption, you’re not seeing the bigger picture. You need to be proactive, change when you’re at the top, and continue evolving. That’s how you stay ahead of the game and stay at the top.”