Maaco is taking on new tactics to spread its facilities across Canada.

On April 17, Maaco hosted the grand opening of their first Canadian “conversion” franchise in Niagara Falls at Brock Ford. This conversion is the first of what Maaco hopes to be of many in Canada.

Converting existing facilities instead of building new ones in Canada is a shift for Maaco. It’s all part of their larger strategy to help them maintain growth in the uncertainty of today’s economy.

“With what was happening with the real estate boom in development, it was becoming very difficult to find correctly zoned industrial real estate to occupy—which is what we needed for our franchises,” said Bob Mauro, director of marketing for Maaco Systems Canada Inc.

“In the insurance-driven collision repair world, there were also downturns. Disenfranchised dealer-based collision shops and some of the free-standing collision shops were de-listed and left without a direction. Also the exit plan for a lot of independents was largely non-existent, so the name recognition that comes with Maaco’s bannering program became a win-win situation for both of us.”

As Maaco laid the groundwork, they realized a few things at play in some dealer-based repair shops: often there was little to no training taking place and little to no centralized buying power. Maaco stepped in to offer just that. In return, the facilities provided Maaco an outlet to continue expansion across North America.

“What was supposed to be a niche turned out to be a need. Interest has expanded exponentially,” Mauro said.

“Bannering will continue to be a part of our portfolio from here on out.’’

For a facility to sign on as a Maaco banner shop it must first be willing to adhere to their business model. “We have a system for everything,” Mauro said. “System is the key word. Shops have to be prepared for an immersion of training. There is one month of intensive training at our Milton head office and three weeks of site training.” Having already established solid brand recognition in the North American market, Maaco expanded on that in the Canadian market in January 2010 through its partnership with Aeroplan. Customers can now earn one Aeroplan Mile with every $2 spent at Maaco.

Aeroplan, which began as a strategic relationship with Air Canada, sought out a partnership with Maaco as an opportunity to re-invent itself. Both parties saw it as a chance to complement their existing services. “We see this [partnership] as another point of differentiation for us,” Mauro said.

As for other ongoing projects, Maaco is in the process of rebuilding its Quebec base. It’s one of the areas in Canada where the company feels it hasn’t achieved its desired level of brand awareness. Taking into consideration the culture and market infrastructure of Quebec, they are currently discussing plans to restructure their marketing strategy.

With new strategies taking off for the year, Mauro is confident. “These initiatives will give us a stronger hold on the market than we’ve ever had [in] the past.” 

This story appeared in Collision Repair magazine 9#2 and contains all original reporting. If you'd like to get future issues to see more like it, visit here and subscribe for free!