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| Ryan Volberg, Autoprise's 35-year-old
president and CEO, said the nascent firm is
on target to meet annual revenue projections
of about US$1.8 million. |
By Glenn Drexhage
Business In Vancouver
October 15, 2002
A Vancouver software start-up's foray into the
multibillion-dollar collision repair industry
is leading to early successes.
So far, Autoprise Solutions Canada Inc.,
which formed June 1, has made inroads with some
of Canada's largest collision-repair operations.
The company offers software and services to streamline
collision-shop procedures and simplify the insurance
claims process.
Its "shop management" software helps
automate job costs, production tasks, accounting,
reporting duties and more.
Autoprise's products include traditional software
packages for solo shops and chains, along with
Web-based systems. All operations are based at
the Vancouver firm, which is a subsidiary of Autoprise
Inc. in Washington state.
Ryan Volberg, Autoprise's 35-year-old
president and CEO, said the nascent firm is on
target to meet annual revenue projections of about
US$1.8 million. Autoprise has about 35 employees,
and Volberg expects to increase that 50 per cent
in six to nine months.
Local firms Vivonet Inc. and KiT Systems each
own half of Autoprise. Vivonet established itself
in the restaurant industry with a Web-based point-of-sale
system, and KiT Systems is a subsidiary of B.C.'s
Kirmac Collision chain.
Vivonet was looking to enter a new market, said
Volberg, who is also that firm's co-founder and
CEO. So it combined its Web expertise with KiT
Systems' applications and targeted the collision-repair
industry, which has been highly fragmented. "That's
all changing now -- we're starting to see a tremendous
amount of consolidation," Volberg said.
Plus, the Insurance Corporation of B.C. is increasingly
using technology to connect with insurance shops
in the province.
These shifts could mean big opportunities for
Autoprise. Previously, the shop-management software
developed by KiT Systems was largely distributed
by Chicago's CCC Information Services Inc. to
between 300 and 400 North American locations.
Since entering the market on its own in June,
Autoprise has landed a handful of B.C. customers,
including Tsawwassen Collision Ltd., Automall
Autobody Ltd., West End Auto Body Ltd. and Springfield
Autobody Ltd.
Other new customers include Hamilton-based CARSTAR
Canada - the country's largest collision repair
franchise -- and Winnipeg's The Boyd Group, the
only public collision-repair company in North
America. Autoprise is providing help desk and
technical support for Boyd's B.C. locations and
also has a multi-pilot agreement with the company.
Paul McFarlane, general manager of The Boyd Group
in B.C., is pleased with the product's results
so far.
"I think these guys can really help me down
the road," he said. "We have 17 shops
[in B.C.]...I want consistency, and they can do
that for me."
McFarlane wouldn't reveal fees.
"It's much better than what I was paying
[to previous companies]," he said. Volberg
said the cost for a solo collision repair shop
to implement Autoprise's software and receive
training would be about $20,000.
He foresees big prospects in the North American
collision repair industry, which is valued at
about US$50 billion. However, Autoprise could
face stiff competition from U.S. software and
services firms such as Mitchell International
Inc. and Automatic Data Processing Inc. ADP's
collision services group has about 12,000 shop
customers and also serves most top insurers in
Canada and the U.S., said Joe O'Brien, vice-president
of sales and services for North America. He said
he wasn't aware of Autoprise.
Mike Jerry, national manager of collision for
Mitchell in Canada, does know the company. "We
don't come up against them often, but we have
come up against them."
Mitchell's Web site says its products are used
by most insurance companies in North America and
the "vast majority" of collision repair
shops.
Both Jerry and O'Brien agree Autoprise faces
considerable challenges ahead. Jerry said the
collision shop market was mature and shrinking
in Canada, which means there aren't as many opportunities
for new entrants.
"It's a very finite market," O'Brien
added. "Almost everybody has a system."
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