BIZARRE BUSINESS PRACTICE! CAN IT LAST?

Posted by Tom Martino at 3:02 pm 0 Comment Print

The name of the business is Denver Auto Hail Repair. It was started by a teacher and some friends. He said he wanted to make better money and provide a great service, and he thought hail repair would be the ticket! He acquired a building at 601 Bryant Street in Denver and conducted a marketing campaign that worked! It attracted hundreds of people. Consumers flocked to Denver Auto Hail Repair for what was promised to be quick, quality repairs for hail damage. BUT ALL WAS NOT AS PROMISED!

I started getting numerous complaints about Denver Auto Hail Repair. They were all similar.

“I brought my car to Denver Auto Hail Repair and they promised me I would have it in a week or two. It’s been months and now all I get are excuses.”

When I contacted the owner he said, on my radio show, that he never dreamed he would be this busy and he’s doing the best he can. He said he intends on making good on all the repairs. He said he even arranged to pay for rental cars for all of his customers who are waiting for their cars. By our calculations, Denver Auto Hail Repair is paying hundreds of thousands of month for hundreds of cars! And it’s been going on for several months.

So, the obvious answer is:  HOW LONG CAN THIS GO ON? It seems to me that he is long past the point of making money on these repairs if he is spending a load of cash on rentals. And we learned he also set up sub-contractors at various local body shops to take the over-flow. That cuts into his profits even more. Still, he continues in business.

So far, the only things going wrong are his unkept promises. Other than that, the rental payments on numerous cars seem to be made. And we haven’t had any complaints on the actual body work coming out of the place.

I would beware of this place and it’s bizarre business model. Even if he intends to do “the right thing” … as the saying goes, “The road to hell is paved with good intentions.”

 

 

 

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