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DECIPHER TPMS

PAGE 30

WORK ON HYBRIDS

PAGE 32

COMMUNICATE WITH CUSTOMERS

PAGE 35

INNOVATIVE MINDSET The 2023 Operator of the Year PAGE 20

Fine-Tuned Costa Kapothanasis is defining his take on the modern quick lube approach with Costa Oil 10 Minute Oil Change.

SEPTEMBER 2023 � NOLN.NET

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W H AT D O E S T EC H R O N DO FOR ENGINES?

With one simple step, Techron helps save your customers money. Just pour it into their fuel tank to clean and protect, maximize fuel economy, and extend the life of every engine.

FOR EVERY ENGINE THERE’S TECHRON Order today from your Chevron distributor or call us at (866) 354-4476 www.techronclean.com ©2022 Chevron U.S.A. Inc. All rights reserved. All trademarks are property of Chevron Intellectual Property LLC or their respective owners.

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Did you know that 1 in 8 women will be diagnosed with breast cancer in her lifetime? As there is currently no known cure, early diagnosis is critical to survival.

Next month is National Breast Cancer Awareness month. However, being a woman-owned business, fighting breast cancer is on the calendar every day for us.

We are proud to partner Fuel Juels with the National Breast Cancer Foundation, one of the most recognized and respected breast cancer charities in the world, to help provide FREE, lifesaving, early detection screenings to women in need all across the country.

Join us in the fight by offering a Fuel Juels service to each of your guests.

FROM NOW UNTIL OCTOBER 31ST: BUY 4 CASES OF FUEL JUELS, GET 1 FREE!

Scan Me! Contact your local Solid Start Distributor to get Fuel Juels® in your shop. Call Today: 877-290-3950 | www.solidstart.com | #TrueBrandTough

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Is it time to grow or sell your business?

Deciding when to make a change – and what kind of change to make - is difficult. Valvoline offers two exceptional solutions for the future of your quick lube:

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EXPRESS CARE When the time is right to make a change, call Gayle McMillin at (859) 357-7303 or visit www.valvolinequicklubes.com.

US-DIG-2541-EN

©2022 Valvoline 10/22 ™Trademark, Valvoline or its subsidiaries, registered in various countries

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VOLUME 38, ISSUE 9

09.23

CONTENTS 6 ONLINE

Familial connections and industry ties 9 BY THE NUMBERS

Highlighting where customers wait

QUICK HITS 11 INDUSTRY INSIGHT

Discourse surrounding Right to Repair 13 AROUND THE INDUSTRY

FullSpeed opens ‘Store of the Future’ in Georgia 16 SHOP LOOK

Take 5 Oil Change of Reno, Nevada

SERVICE 30 PIT STOP

Explaining Tire Pressure Monitoring Systems 31 ADAPT

The impact of artificial intelligence 32 TECH+TOOLS

Approaching hybrid vehicle service 35 CASE STUDY

COVER STORY

FE ATURE 20 FEATURE STORY

PHOTO: JEFF BERGER, JB PHOTOGRAPHERS

2023 Operator of the Year

Costa Kapothanasis, president and CEO of Costa Oil 10 Minute Oil Change, is making his mark on the industry.

BY HANNA BUBSER

Elevated Approach Costa Kapothanasis’ passion for quick lube comes from a mindset of entrepreneurship.

Relaying information to customers

COLUMNS 19 FROM THE SHOP

Avoiding missed sales

BY A DA M TAT U M

42 LEADING EDGE

Using words wisely

BY LENNY SAUCIER

NOLN (USPS PERMIT 23608), (ISSN 1071-1260 PRINT) IS PUBLISHED MONTHLY BY ENDEAVOR BUSINESS MEDIA, LLC. 1233 JANESVILLE AVE., FORT ATKINSON, WI 53538. PERIODICAL POSTAGE PAID AT FORT ATKINSON, WI, AND ADDITIONAL MAILING OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NOLN, PO BOX 3257, NORTHBROOK, IL 60065-3257. SUBSCRIPTIONS: PUBLISHER RESERVES THE RIGHT TO REJECT NON-QUALIFIED SUBSCRIPTIONS. SUBSCRIPTION PRICES: U.S. ($90 PER YEAR).

ALL SUBSCRIPTIONS ARE PAYABLE IN U.S. FUNDS. SEND SUBSCRIPTION INQUIRIES TO NOLN, PO BOX 3257, NORTHBROOK, IL 60065-3257. CUSTOMER SERVICE CAN BE REACHED TOLL-FREE AT 877-382-9187 OR AT NATIONALOILLUBENEWS@OMEDA. COM FOR MAGAZINE SUBSCRIPTION ASSISTANCE OR QUESTIONS. PRINTED IN THE USA. COPYRIGHT 2023 ENDEAVOR BUSINESS MEDIA, LLC. ALL RIGHTS RESERVED. NO PART OF THIS PUBLICATION MAY BE REPRODUCED OR TRANSMITTED IN ANY FORM OR BY ANY MEANS, ELECTRONIC OR MECHANICAL, INCLUDING PHOTOCOPIES, RECORDINGS, OR ANY INFORMATION STORAGE OR RETRIEVAL SYSTEM WITHOUT PERMISSION FROM THE PUBLISHER. ENDEAVOR BUSINESS MEDIA, LLC DOES NOT ASSUME AND HEREBY DISCLAIMS ANY LIABILITY TO ANY PERSON OR COMPANY FOR ANY LOSS OR DAMAGE CAUSED BY ERRORS OR OMISSIONS IN THE MATERIAL HEREIN, REGARDLESS OF WHETHER SUCH ERRORS RESULT FROM NEGLIGENCE, ACCIDENT, OR ANY OTHER CAUSE WHATSOEVER. THE VIEWS AND OPINIONS IN THE ARTICLES HEREIN ARE NOT TO BE TAKEN AS OFFICIAL EXPRESSIONS OF THE PUBLISHERS, UNLESS SO STATED. THE PUBLISHERS DO NOT WARRANT EITHER EXPRESSLY OR BY IMPLICATION, THE FACTUAL ACCURACY OF THE ARTICLES HEREIN, NOR DO THEY SO WARRANT ANY VIEWS OR OPINIONS BY THE AUTHORS OF SAID ARTICLES.

SEPTEMBER 2023

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09.23 VISIT

NOLN.NET TODAY

PODCAST

THE NOLN PODCAST

PODCAST: SCOTT ACCARDO’S JOURNEY TO VP OF OPERATIONS FOR SPEEDEE

PHOTO: 399053445| SERHII | ADOBESTOCK

Fullspeed Automotive recently announced the promotion of Scott Accardo to vice president of operations for SpeeDee Oil Change & Automotive Service. But Accardo’s career with this industry began well before that announcement.

At 7 years old, Accardo helped vacuum customer cars at his father’s SpeeDee franchise, which also happened to be the very first franchise under SpeeDee as a whole.

This early exposure to a quick lube setting ultimately led to a decades-long career in the industry. Accardo joins the show to talk about how he got to where he is today.

PODCAST: RUNNING THE FAMILY BUSINESS WITH SARA WHITE

6

NATIONAL OIL AND LUBE NEWS

Listen to all the episodes and subscribe at: noln.net/podcasts.

NOLN NEWS

Sara White has been involved with her family’s Grease Monkey location in Fort Collins, Colorado, for the majority of her life. It was originally established by her grandfather in 1994. White went from helping around the shop as a teenager to now running the whole operation with support from her sisters and father.

White joins the show to talk about how she’s made the family business her own, and what it’s like to have a female-run shop in a mostly male-dominated industry.

NATIONAL OIL AND LUBE NEWS

Head online to check out NOLN’s library of podcast interviews. Hear from quick lube leaders about new strategies, service stories, and innovative operations that push the industry forward.

@OILLUBENEWS

Have you subscribed to the newsletter? NOLN will send the latest industry news, strategies and profiles straight to your inbox.

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ADVERTISERS/PRODUCT INDEX American Petroleum Institute (API) (18)__________________________________________

EDITORIAL

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CONTENT DIRECTOR Matt Hudson

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FULLSPEED AUTOMOTIVE

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ASSOCIATE PUBLISHER Andrew Johnson ASSOCIATE SALES DIRECTOR Mattie Gorman DIRECTOR OF BUSINESS DEVELOPMENT Cortni Jones ACCOUNT EXECUTIVES

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SEPTEMBER 2023

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NUMBERS

09.23

THE WAITING GAME Time is a big factor for quick lube shops. “Quick” is in the name, after all. Customers don’t always expect to be waiting for long periods of time, but how they experience that wait time is still an important consideration.

In the 2023 NOLN Operator Survey, respondents were asked about the options that customers have when it comes to waiting areas. The answer may differ depending on the shop setup and the services being rendered. A drive-thru shop may not have a lobby, for example. But the data shows that most respondents have both a waiting area and an option for customers to wait in their vehicle.

22%

ILLUSTRATION: 163632911 | STMOOL | DREAMSTIME

In their cars

38%

In the waiting room

40%

Customer choice (both available)

FIND OUT MORE

Make the wait worthwhile, even if it’s only for a short time. Search “Designing a Comfortable Lobby” on noln.net to get some ideas for your shop.

SEPTEMBER 2023

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Your shop.

Your hustle.

Your success.

Powered by Mobil™

Our Mobil offers are built with independent operators in mind.

Unlike other lubricant suppliers, we are not out to compete with you through franchising and corporate-owned stores. Instead, we want to support the business you've worked hard to grow.

Get in touch at poweredbymobil.com © 2023 ExxonMobil. Mobil and Mobil 1 are trademarks or registered trademarks of Exxon Mobil Corporation.

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INDUSTRY INSIGHT

THE MESSY STATE OF RIGHT TO REPAIR A recent agreement between major organizations has sparked discussion

PHOTO: 15120953 | OLESCHWANDER |DREAMSTIME

BY K AC E Y F R E D E R I C K

THE RIGHT TO ACCESS DIAGNOSTIC repair data has been a hotly debated topic within the industry as of late. While automakers insist that opening access to data will jeopardize safety, independent shops have argued it is a profit-driven strategy to direct consumers to dealerships for services and repairs.

Many in the industry are feeling the pressure to make their positions on the issue known, which is exactly what was recently done by the Automotive Service Association (ASA).

In collaboration with the Society of Collision Repair Specialists (SCRS) and the Alliance for Automotive Innovation (which represents OEMs), the ASA created a letter to members of Congress with views on Right to Repair collectively agreed upon by the three organizations, based upon a national agreement made in 2014 called the Memorandum of Understanding.

The letter stated that information provided to authorized dealers should also be accessible to independent shops. This can range from telematics data to technologies and powertrains for all vehicles, including gasoline, diesel, fuel cell, electric battery, hybrid and plug-in hybrid electric.

Ways to make repair information accessible to others were proposed, such as having it directly accessible through an automaker’s website, shared access points such as OEM1Stop.com, or third-party information providers.

Responses Follow Though the letter was presented as a stance representing the industry, it has not been met with universal approval.

The Auto Care Association’s response called the letter “a thinly veiled attempt to confuse lawmakers and drivers” and said it was not consulted on the drafting of the ASA’s agreement document.

The Association pointed to flaws in prior agreements, including that OEMs would not be bound to any participation in Right to Repair compliance and that OEMs would not be obligated to allow direct access to telematics data.

Another group, the Auto Care Alliance, called into question ASA’s true stance on Right to Repair, claiming that rather than supporting it, ASA has been fighting against Right-to-Repair legislation for the past two decades.

As evidence of this, the Auto Care Alliance cited a 2003 agreement made between manufacturers and ASA that the Auto Care Association said, “lacked enforcement” and slowed down progress in gaining Right-to-Repair legislation.

Though the ASA referenced the 2014 Memorandum of Understanding as the basis of its agreement, the Auto Care Alliance doubts the choice of this foundation, arguing that the terms of that 2014 agreement have not since been honored and that requests for dispute resolution have gone unanswered.

In addition, MEMA Aftermarket Suppliers came out with a statement questioning the purpose of the agreement.

QH

In MEMA’s statement, they outline specific issues that must be addressed regarding Right to Repair: access to data for light-duty, medium-duty and heavy-duty vehicles, as well as explicit protection for consumers to access that data.

MEMA follows this by affirming its support of the REPAIR Act, claiming that it addresses these issues.

The Impact on Smaller Operations According to coverage from Wired, many are still concerned with smaller, independent businesses not having access to information from cameras and sensors. This includes data on location, speed acceleration and the vehicle’s software status.

“We want easy and affordable access to that information for the independent repair shop,” explains Auto Care Association Chair Corey Bartlett, as reported by Wired.

Shops that can afford to pay into certified networks of shops are often able to access information easier, such as Michael Bradshaw, vice president of K & M Collision in Hickory, North Carolina, and vice chair of SCRS. His shop pays to be in 30 automaker certification programs that include Kia, General Motors, Bentley and Rivian.

Though Bradshaw doesn’t see a problem with having to pay for information, many worry that this paywall to information will only grow higher.

“My fear, if no one gives some stronger guidelines, is that I know automakers are going to monetize car data in a way that’s unaffordable for us to gain access,” Dynamic Automotive Co-Owner Dwayne Myers told Wired.

There is still much discussion to be had on Right-to-Repair legislation, but it is a discussion that the industry must be involved in—not a select group.

“In terms of how automakers behave and whether vehicle owners or repair shops will get access to information—I don’t think this will change anything,” SecuRepairs.org Founder Paul Roberts stated to Wired.

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AROUND THE INDUSTRY

HIGHLINE WARREN JOINS UAF BOARD OF TRUSTEES

The University of the Aftermarket Foundation (UAF) has announced automotive distributor Highline Warren as the newest addition to its board of lifetime trustees, according to a press release.

Lifetime trustees are chosen by the UAF based on outstanding donor contributions they have given through scholarships and funding for educational programs in the motor vehicle aftermarket.

Highline Warren will be represented on the UAF’s board of trustees by Zach Miller, the company’s senior vice president of sales.

“The generous contribution from Highline Warren will help UAF fund scholarships to attract talented young people to our industry and support educational initiatives, including continuing education for the next generation of aftermarket leaders,” stated University of the Aftermarket Foundation Chairman Bob Egan.

FULLSPEED AUTOMOTIVE UNVEILS ‘STORE OF THE FUTURE’

FullSpeed Automotive has unveiled its first ‘Store of the Future’ design with a new Grease Monkey location in Warner Robins, Georgia, according to a press release.

The new location at 2305 Watson Blvd. was built from the ground up around the ‘Store of the Future’ model created by design firm Studio H2G, which seeks to provide enhancements to both the appearance and functionality of FullSpeed Automotive locations.

The new Grease Monkey is the first to implement this model, featuring new express lanes; instructional signage in the parking lot for customers; upgraded seating areas that come with patio seating, refreshments, and entertainment; and high-quality technology that will implement artificial intelligence to streamline processes.

The store held a grand opening ceremony to celebrate, which kicked off on August 3 with a ribbon-cutting ceremony and ran through August 5. The three-day celebration included food, drinks and giveaways.

FullSpeed is currently seeking qualified individuals who are interested in single, multi-unit and conversion opportunities.

“Although the location is new, we have received many compliments from customers about the design and ease of service,” said FullSpeed Automotive President Ron Stilwell. “We anticipate even more positive feedback, and are excited to continue rolling out the new store prototypes across the country.”

CATALYTIC CONVERTERS STOLEN DESPITE ANTI-THEFT DEVICES

Thieves in West Palm Beach, Florida, were able to steal four catalytic converters despite anti-theft cages protecting them, CBS 12 reports.

Two trucks from Massey Services were targeted by thieves overnight, who crawled up underneath the two vehicles and sawed off the catalytic converters. Though the converters were protected by a specially made cage of steel cables, the thieves were able to cut through it. Both the trucks come with two converters, with all four of them being taken.

The trucks were towed to Midas of West Palm Beach, owned by Ron Katz, who said that he has seen cases like this happen often–specifically with trucks owned by Massey Services, happening across several cities. The two trucks targeted this time specifically had been the target of another theft only a couple of months ago.

“Over the last year, we’ve replaced over 100 catalytic converters in their vehicles,” said Katz. “It’s so rampant and I was hoping it was slowing down.”

The shop plans to install a new type of protective covering over the catalytic converters that are made of solid steel.

QH

TIREHUB CELEBRATES 5-YEAR ANNIVERSARY

In July, TireHub celebrated its fifth anniversary since being cofounded by the Goodyear Tire & Rubber Company and Bridgestone Americas Inc., according to a press release.

In celebration of the company’s anniversary, it has announced plans to continue on its path toward expansion. In the past 18 months, TireHub has added or relocated 12 of its logistics centers and has brought its total number to 80 centers, employing more than 1,600 individuals that the company refers to as “Hubbers.”

In the months to come, TireHub is planning to raise that number as it looks to open its first regional distribution center later this year.

Other recent achievements for TireHub have included expanding its product portfolio, improving its delivery capabilities and seeing positive returns on company investments.

“Along with the support of our shareholders, the success we have experienced is due to the hard work and dedication of our Hubbers. Our first five years have been momentous, and TireHub isn’t slowing down anytime soon,” stated TireHub CEO Ted Becker.

“We look forward to more growth in the months and years ahead.”

LUBE X-PRESS TO ACCEPT FRANCHISEES

El Paso-based quick lube business Lube X-press has announced that it will now be accepting franchise partners, Investors Observer reports.

The business was founded in 2012 by brothers Karlos and Justin Lazo in El Paso, Texas. Though it first started as a full-service shop, the brothers decided to pursue the quick lube market.

Now, the company operates as a 15-minute drive-thru oil change facility, with 10 locations open in the El Paso region. There are three new sites being SEPTEMBER 2023

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AROUND THE INDUSTRY

developed in Texas and two in Arizona, with plans to expand to Florida and New Mexico soon.

Lube X-press is now seeking single-unit and multi-unit franchisees to partner with throughout their growth.

Those with strong skills in business, communication and management are desired and will be provided with tools and support systems cultivated by industry experts. The company is estimating initial investments for new franchise partners to range from $260,750 to $396,000.

“My brother and I founded Lube X-press with a clear mission to break through the stigma of vehicle maintenance service brands not prioritizing their customers’ needs by ensuring that each of our guests leave having had a WOW experience,” said Lube X-press Co-Founder Karlos Lazo.

FIRE AT MICHIGAN SHOP SENDS FLAMES FLYING

An oil change shop in Flint, Michigan, caught fire in July, Mid-Michigan NOW reports.

The fire erupted at Checker FlagQuick Lube on Corunna Rd., shortly before 7 a.m.

No employees were present at the shop when the fire began. When the Flint Township Fire Department first arrived at the scene, they said there were flames being catapulted from the roof of the building.

No one was hurt as a result of the incident, according to the FTFD. It has not yet been determined what caused the fire.

REPAIRER AND AUTOMAKER COALITIONS TAKE STANCE ON RIGHT TO REPAIR

A coalition of repairers and automakers have officially stated their views on Right to Repair and shared them with members of Congress in July, according to a press release.

The Automotive Service Association, the Society of Collision Repair Specialists and the Alliance for Automotive Innovation collaborated on a letter

PHOTO: 36915594 | GAJUS | DREAMSTIME

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AROUND THE INDUSTRY

to members of Congress with views on Right to Repair collectively agreed upon, based upon a national agreement made in 2014.

The letter stated that information provided to authorized dealers should also be accessible to independent shops.

This can range from telematics data to technologies and powertrains for all vehicles, including gasoline, diesel, fuel cell, electric battery, hybrid and plug-in hybrid electric.

Ways to make repair information accessible to others were proposed, such as having it directly accessible through an automaker’s website, shared access points such as www.

OEM1Stop.com, or third-party information providers.

Following the announcement, the Auto Care Association has come out in opposition to the letter, stating that it fails to address several issues.

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“While the agreement purports to be relevant, all it does is affirm the 2014 Memorandum of Understanding rather than implement a meaningful solution to preserve the entire automotive aftermarket and the competition and consumer choice that it creates,” the response stated.

VALVOLINE ANNOUNCES ADDITION TO BOARD OF DIRECTORS

Valvoline has announced Patrick Pacious as an independent director on the company’s Board of Directors, according to a press release.

Pacious’ new role was effective as of July 11.

He will be serving as a member of the Board’s Compensation Committee.

Prior to his new role, Pacious had been President, Chief Executive Officer and

QH

a director of Choice Hotels International Inc. since 2017, a company that operates more than 7,400 hotels. He first started at the company in 2005, serving in various senior leadership positions.

“Pat’s expertise in franchise development and expansion, brand building, acquisitions and technology transformation will be invaluable as the Company executes on its strategy to rapidly expand its retail footprint with an increased emphasis on franchisee unit growth,” stated Board Chairman Richard J. Freeland.

Get more industry news at noln.net

SEPTEMBER 2023

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QH

S H O P LO O K

TAKE 5 OIL CHANGE OF RENO, NEVADA OPERATOR:

AUTOMOTIVE SERVICE HOLDINGS

SHOP SIZE:

3 BAYS, 1,717 SQUARE FEET STAFF SIZE:

10-12 TECHS AND A MANAGER B Y M AT T H U D S O N P H OTO S BY S H A N E T ROT T E R

BREAKING NEW GROUND

FRANCHISEE AUTOMOTIVE SERVICE Holdings has been diversifying its business, as well as its geographic reach.

This was the second quick lube location for the Las Vegas-based company, bringing the brand to new territory.

“It’s the first Take 5 in the Reno market and the second in the state,” says Chad Warner with the franchisee group.

Official opening took place in March, and the company has plans for many more locations in the future.

JUMP START

Most Take 5 locations have a distinctive look, and Warner says it was great to see it come together during the construction process. In a new market, he sees the building details as a big advantage for curb appeal.

16

“One of the options on a prototypical building for Take 5 is the tower,” he says.

“I think that really looks great, and it catches the attention of people driving by. For all the ones that we’re building where the cities are allowing, it really stands out.”

That’s important, as the shop is situated along a busy street in a high-traffic commercial area.

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H AV E A N O U T S TA N D I N G S H O P T O S H A R E ? E M A I L N E W S @ N O L N . N E T

BUILD RIGHT

Though the shop has all the hallmarks of a Take 5 shop, Warner says that the city of Reno had some needs for landscaping and frontage.

“Outside of the shop, some of the requirements we had to do from a zoning perspective is that we have a trellis and awning element to beautify the

property,” he says.

The construction process went pretty well, Warner says, at 116 days from start to finish. The crew they worked with avoided significant weather delays and really made a difference in their efficiency to get things up and running.

“We loved our GC, they did an amazing job,” he says. “They fought every

QH

single snow, rain, weather event that happened in our part of the country this winter. We poured the foundation and got it in a day before it really started to set in. So they were able to work on the building and miss no days on the building.”

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FROM THE SHOP

c

Are You Missing Out on Sales?

Some areas where you could be losing opportunities

ADAM

TATUM

Adam Tatum is director of operations for the Virginia Group, a Jiffy Lube franchisee with 11 locations.

He has over a decade of experience in the industry with a proven track record of building customer counts and sales, as well as using innovative ways to bring a new look to the automotive field for both the customer and the employee.

Performance comes from growing your business through people.

ATAT U M

PHOTO: LUCAS MOORE

@V A L U B E .COM

AS THE DESIGNS OF CARS HAVE BEEN changing over the years, our businesses are learning new ways to service various components of these changes. How many of you are out there looking into ways to service electric vehicles? How many of you are looking for extra revenue streams with add-ons for GDI engines and new A/C freon configurations? These are all great things to start getting into for future business. However, I bet that many of you do not realize how much opportunity you are missing on some tried and true sales items as you move forward. I will highlight a few below and remind you of the preventative maintenance items that are on your table.

Belts This has got to be the biggest area where I see lost revenue in the stores. I remember the times when there were store managers that would hang these things in the back room like a badge of honor and compete to see who could do them faster. I remember when vendor trainers would come to the markets and give away prizes for this very thing. How many have you sold this month?

How about this YEAR? With the technological changes mentioned above, it is not just in the operation of the vehicles but also the components.

Many belts do not crack or break any longer, they stretch. The old way of looking down at the belt ribs with a flashlight to count the cracks does not work any longer. Many engine builders are out stretch guides on the tensioner pulleys on their new builds, but if you do not know they are there, are you looking for them? There are a few things that you can do to get your stores back on track for these sales. First, don’t forget to look! How many of you remember the small A/C belt that sits behind the serpentine on GM trucks? I change two to three a month just by looking for them.

Teach your guys to take a few seconds and retrain the flashlight method. Also, do some research on stretch guides, as you will find a lot of usefulness in this refresher.

Fuel Filters I know that many of these filters are now in the gas tanks or not accessible in new vehicles. But do you have a process in place where your lower bay tech LOOKS for one in line? There are a ton of them still on cars and they can be easily changed.

If you remember the old recommendations, these things were due to be changed at 15,000 and 30,000 miles. Diesels are an easy sell for this service as well, and usually come with a bigger price point. How many of you know that certain fleets have mileage data for these filters if you just ask for them? These do take special tools to release the lines, but it’s a few dollars, so not a big investment. You change one filter out and you have reached your return on investment.

Headlight Cleaning This is something that has been out there for a while now, but not many facilities have taken this on as a service. We have all seen the discoloration that occurs on the headlights over time. This service is a little time consuming and has some steps, but it is a great safety item that you can offer for your customers. By cleaning and putting on the new clear coat, you are increasing the night visibility for the driver and for others on the road with them. This can also be an item in which you might fail a state safety inspection for in some states. So, if you have this as an action item for a sticker, add this to your lineup of sales items to be the one-stop shop for inspection needs.

I have only mentioned three items that could be lost sales, but with a little training, they can become profit makers for your locations. These are all items that take little time to inspect, so you do not really add time into your service by checking these items. Take the time to look at your service offerings and crunch some numbers. I bet that you will find that some of these areas have had a sharp decline in sales for your centers. You may think that it’s just a thing of the past, but with a little training and expectation setting, they can take you to the next level of service for your customers.

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COSTA KAPOTHANASIS HAS AN EDUCAtional background in finance, but he may as well be an engineer too. Or, perhaps more accurately, a reverse-engineer. Before he was president and CEO of Costa Oil 10 Minute Oil Change, Kapothanasis was in his mid-20s entering the quick lube industry in 2014.

He already had a secure job elsewhere at the time. But his self-proclaimed “entrepreneurial side” wanted more, and the quick lube industry felt like the right fit for an innovative business approach.

“I spent a lot of time at my desk kind of reverse engineering what the consumer thought the problems in our industry (were),” Kapothanasis says.

“I came up with a game plan to put my twist on things and that’s how we got where we are, is building upon the premise of the oil change-only model.”

Thus, the concept behind Costa Oil 10 Minute Oil Change was born.

Fast-forward to 2023 and the Costa Oil network of company-owned and franchise-owned stores stretches across many states. In fact, Kapothanasis says they have sold over 150 territories over the past 24 months with franchising alone, which means rapid growth is ahead for the network. Kapothanasis owns 18 shop locations, with plans for more corporate stores to come. In total, there are over 30 Costa Oil locations.

Growth is good, but that’s not all that keeps this operator motivated. When thinking back to the very first store he opened in Harrisburg, Pennsylvania, he recalls the mission behind the model.

“We had two things we needed to tackle, and I and I really piloted it at that first store in Harrisburg. We needed to one, go back to the pure oil 22

change-only model and two, get that credibility back,” Kapothanasis says.

“And it all hinged on educating the customer as opposed to preying on ignorance and hard upsells and putting your employees in a position where they felt terrorized that they were going to lose their job if they didn’t sell enough air filters.”

For Kapothanasis, his business strategy is as big-picture as it is detail-oriented. With each goal he sets, he carves his own path towards achievement. He’s not afraid to do something different, and in this industry that deserves recognition.

It’s for these reasons, and many more, that Costa Kapothanasis is the 2023 NOLN Operator of the Year.

INSPIRATION IS EVERYWHERE

At the beginning of his journey as an operator, Kapothanasis says he had a lot to learn. But unsurprisingly, he had a plan of attack.

“I asked, ‘Why?’ a lot when it came to this business because I didn’t have that previous exposure (that) some of the old hats in our industry had,” he says.

He looked outside-of-the-box for inspiration. He recalls one time when he was driving through Amish country in Pennsylvania. He came across an Amish pole barn company producing 32-by-24 foot pole barns for $17,000.

Comparing this price to the high budget point for constructing new quick lube buildings, his wheels got turning.

“I know there’s more to building a building than just the shell of the building of course, but for me, I was like, ‘Okay … I can do oil changes in these buildings. So why? Why can’t we build this building for a quarter of a

million dollars instead of a million dollars?’” Kapothanasis says.

Thanks in part to that experience, he was able to come up with a building design that could do the volume he wanted to achieve while also utilizing real estate effectively. In practice, this has included opting to transform underutilized spaces such as former gas and service stations. It wasn’t an easy route, by any means. Kapothanasis says there have been challenges along the way with inflation rates and supply chain issues, but it has been well worth it to do things his way.

“Me being a focal figure in the business allows me to be flexible and move quickly,” Kapothanasis says. “I don’t have a board of directors that can dictate how I do things. I don’t have to worry about shareholders and distributions.”

Costa Oil’s oil change-only model, complete with smaller and more efficient buildings, is geared toward the wants of the consumer, according to Kapothanasis. It’s from customer feedback, including reviews that he saw on Yelp detailing how people wanted a timely oil change service experience.

“Then, if you couple that with all of the companies and startups that were really getting big investment money behind them, they were all businesses that sold customers their time back,” Kapothanasis recalls. “I think our industry was really ahead of its time ... that was literally the sole concept of the quick lube business … we’re trying to be the least amount of impediment on your day.”

These days, while some shops opt to add on more services, Kapothanasis believes in the straightforwardness of

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Costa Oil. But he makes a point to say his operational approach isn’t a rigid one.

If he hears from customers that they want something else, he isn’t opposed to offering it. But he needs to see the evidence first. Right now, he is seeing success in the niche.

“I think sometimes our industry has a bunch of (people who) follow the leader, and things that move our industry are the larger guys … ‘What are they doing? We’re just going to do that,’” Kapothanasis says.

LEADERSHIP SQUARED

Costa Oil introduced franchising in 2021, and along with that came a new perspective for Kapothanasis.

“When you’re a franchise system, the first and foremost ... important thing is supporting the people as they go through their franchise journey,” Kapothanasis says. “For a lot of these people, they’re putting life savings on the line for the dream of owning their own business and they (believe) in your brand, so you need to take that very seriously.”

The shift from Costa Oil being solely company-owned to also including franchise owners meant that Kapothanasis had to tweak his leadership approach.

He describes himself as a leader with two components: an operator and a franchise CEO. “When you become a franchise CEO, then your role shifts dramatically to a place of compliance (and) support,” Kapothanasis says. “Still very process-driven, so that part does overlap quite a bit, but I can’t take a day off and go in the pits and do oil changes.”

That being said, Kapothanasis is actively trying to reincorporate more of those hands-on work opportunities for SEPTEMBER 2023

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Costa Kapothanasis, President/CEO of Costa Oil

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himself by building a solid foundation of support.

“I have built a team around me that has allowed me to start doing that again which I think is important and so I will be able to be back in that mind frame which will only help, I think, everybody,” Kapothanasis says.

He says his perspective as an operator will remain important no matter what.

It’s what got him to where he is today and is what helped make him a leader.

“I am an operator at heart, and I’ve always been an operator which has allowed me to always have a pulse on what my employees are feeling (and) on what the customers are feeling,” Kapothanasis says.

FINDING TRUE NORTH

When asked to identify what he’s most proud of with Costa Oil, Kapothanasis immediately mentions the relationships that have developed along the way. For example, he points to a “hilarious” manager group text that allows everyone to stay connected, even outside of shop walls. Relationships are a key component of Costa Oil’s success.

“Because we have such little turnover compared to the rest of the industry, we’ve had guys forge … lifelong friendships. And it’s not completely altruistic,” Kapothanasis says. “It’s made my life easier to not have that turnover and I’m very proud of that.”

These deep connections don’t just come out of thin air. It starts with the people, and it has a lasting impact.

Kapothanasis notes that some of his original employees are still with Costa Oil to this day. That’s no coincidence.

In practice, good character is a detail that does not get overlooked in the hiring process.

“We literally put in all of our job ads that we’re looking for kind people,” Kapothanasis says. “That cannot be overstated in the automotive industry.

The bar has been so low for so long.”

That’s not just a throwaway line. It’s something that Kapothanasis believes in and enforces. He says he has never

fired someone for making mistakes, but it can be a deal breaker if someone isn’t kind. Prioritizing this personality trait starts at the top.

“For me as a leader, I need to instill that,” Kapothanasis says. “I need to follow through with that in terms of ... being kind to myself (and) to them (and) not being above anybody, (and) not making anyone feel belittled.”

That support extends to staffing efficiencies as well. Costa Oil uses a proprietary flow chart allowing for high volumes with less staff while maintaining quality control. There is also an internal website for franchisees and corporate staff to do base level training, which helps ensure consistency across the board. Also, there is another common theme across Costa Oil: its guiding force.

“We say all the time, ‘The oil change industry is our North Star,’” Kapothanasis says.

He describes this notion as a bit of a dichotomy, as there needs to be a balance between following that star and remaining flexible as the needs of the customer may fluctuate. But in that balance, there is opportunity to be found.

And Costa Oil will continue to take

Powerful Dynamic

Costa Kapothanasis has built a team structure that values kindness and quality friendships.

advantage of that idea going forward.

Brand awareness is top-of-mind for Kapothanasis. This enthusiasm can be seen during Costa Oil “Discovery Days,” which are events for prospective franchisees to learn more about the business. Kapothanasis says he often will ask attendees what first comes to mind when they think of fast food. For a while it was split between McDonald’s and Chick-fil-A. But more recently it has shifted to nearly everyone answering the prompt with Chick-fil-A. “What I tell people after we do that exercise is there’s not any industry that cannot be disrupted,” Kapothanasis says.

It’s an example that shows anyone can achieve brand awareness and become top-of-mind, he says. That’s what he hopes to achieve with the Costa Oil model well into the future.

“I think we’re going to be able to continue to open stores and legitimately be a national player in this space where people think of us when it comes to the oil change-only model,” he says.

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People Person

Jason Thomas (right) strives to create an environment that serves employees as well as customers at South Bay Lube.

How one phone call took Jason Thomas from computer science to running a franchise

By Kacey Frederick

26

T H O M A S MANY OF THOSE WHO END UP IN THE automotive field may not initially plan on it, but are nonetheless destined to lead a thriving career in the industry.

Such is the case for Jason Thomas, who studied computer science in college before going on to work at Jiffy Lube. Now, as vice president of the South Bay Lube franchise, Thomas has helped it expand to more than 30 locations across Florida.

As runner-up for the NOLN Operator of the Year award, Thomas sat down to talk about his story of entering the

industry and what he’s learned over the years.

FROM COMPUTERS TO CARS

Though originally from Anderson, Indiana, Thomas’s family moved to Fort Myers, Florida, when he was a young child. As a teenager, he had an interest in learning how to repair vehicles but was focused on studying computers.

Later in life, Thomas went to university in Tampa to study computer science and met the person that would introduce him to what is now his career.

PHOTO: COURTESY OF JASON THOMAS

J A S O N

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In 1992, he received a call from his former classmate, who worked at a Jiffy Lube location in Clearwater, Florida, and wanted Thomas to work alongside him there. Thomas was then married and living back in Fort Myers, but his wife would soon need to be in the Clearwater area to attend school, making it a perfect opportunity.

“And so I went up there and I’m actually still here. I never went on to pursue what I was interested in. I just, you know, I love the people. I love the challenges. I love the business,” confesses Thomas. “It seems like a very mundane type of business, but you’d be amazed at the people that you meet and the teamwork and the camaraderie.”

Thomas found motivation by becoming business partners with his former classmate and watching their franchise grow from one location all the way to their 34th location now being constructed.

As more locations throughout the state opened, Thomas was energized by meeting new people as he traveled through the state’s west coast. He felt like he was getting to explore and experience something new.

NEWER ISN’T ALWAYS BETTER

Now, as vehicles become more hightech, Thomas does get the experience of working with technology that he once was focused on.

He enjoys finding ways to integrate technology into his work to help things run more efficiently and says that part of working with a company as prominent as Jiffy Lube is that it gives them room to be experimental with different forms of technology.

While the improvement in technology and tools has been exciting, throughout his career Thomas has seen people coming to the shop less and less, confident that newer vehicles mean that they don’t require as much maintenance and feeling less inclined to understand how their vehicles work.

Though automotive oils aim to offer better fuel efficiency, less wear and

more longevity, many vehicles are putting more demand on these oils than ever due to factors such as extreme temperatures and fuel economy ratings.

“Most vehicles today, they’re sold under the premise that you’ll just bring it back to the dealer, they don’t teach you about even how to check the oil,” Thomas says. “I’ve seen many, and heard of many cases where you buy a vehicle, they don’t even pop the hood for you, they don’t even show you where to pop the hood. And that’s a huge concern.”

IT TAKES A VILLAGE

With customers’ intervals between visits becoming longer and the number of locations to manage growing, it’s important to Thomas that he maintains strong communication with his team to be in touch with what’s happening at every store.

The more experience Thomas gains, the more he has learned the value of listening: both to customers and employees. He wants his team to feel invested in the business by hearing out their experiences and ideas.

“It becomes a living, breathing organization with many people’s thoughts and feelings and opinions of how things should be and what directions that we should take,” Thomas explains.

Thomas takes pride in providing a place where people can hone their skills and succeed, whether it is there or serves as a stepping stone to somewhere else. It’s not only a place where customers can come to receive reliable, quick service, but also where employees can build critical skills, such as management and customer service, that they may not have the opportunity to learn through school.

DRIVEN BY PEOPLE

The relationship between South Bay Lube and its employees is a strong one. Even as the business survived both Hurricane Ian and Irma, not one employee left in the aftermath. As everyone was struggling with loss and

destruction, it was also a time when people came together and offered support.

The genuine passion for the industry and what it provides for others is what fuels Thomas to continue down his path. His biggest hope is that he and his business partner can hand down a great business to the next generation that works there.

Thomas was never too focused on building a successful franchise–he just loves meeting people and getting to help them, and doesn’t look to stop any time soon.

“If you really care, and you enjoy working with people and seeing them grow, and it’s rewarding to you ... success will come,” says Thomas.

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Culture Cultivator

Brian Morrison (right) has a large network of employees, and he supports them through training opportunities and by giving back when they're in need.

Brian Morrison’s franchise is built for growth, and his success reflects that preparation

By Matt Hudson

28

M O R R I S O N WHEN CONTACTED BY NOLN, BRIAN MORrison was close to opening his 12th store location—a former Jiffy Lube that was familiar to the new owner.

“I used to operate that store when I worked for Jiffy Lube,” Morrison says.

An operator like Morrison is bound to come across a coincidence like that.

Prior to running his own franchise, Morrison had two decades of experience at Jiffy Lube, learning the ins and outs of the business. When he started his network of SpeeDee Oil Change and Auto Service and Grease Monkey locations in 2019, he already had experience running dozens of shops.

Growth was in the plan.

The shop network is up to 12 now through the Carolinas. It’s tough to

acquire and grow, but Morrison and his team have also improved operations, and with that, revenues. Morrison often references his first location in Spartanburg, South Carolina. It had six-figure revenue numbers before, but in 2022 the store did $1.6 million.

“We put some funding, mainly labor and staffing, and grew the business,” Morrison says.

Even as competition came into the area, Morrison added new services to the menu. The growth continues.

Franchisor FullSpeed Automotive recognized Morrison’s franchise in the spring of 2023 at its joint conference in Nashville, highlighting the revenue success he’s had at the store level. Multiple locations surpassed $1 million in

PHOTO: STEPHEN STINSON

B R I A N

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revenue in 2022. In fact, seven figures is the network average.

And here in this magazine, NOLN honors Morrison as a runner up for the 2023 Operator of the Year program.

MAKING INVESTMENTS

Morrison’s going to need all that experience managing multiple locations, because he’s got plans for more additions to the network.

He says that his strategy has been to put the people in place to absorb that growth once it hits.

“Primarily, I believe it’s an investment in people,” he says. “There are usually not bad locations, some better than others, but if you plug your best manager or customer service advisor in the worst store, that won’t be your worst store for long.”

Morrison says he’s overstaffing a bit more than what the industry average might be. Shops that are short-handed start taking shortcuts, which is not a path to growth, he says. That goes for leadership positions, too. He says he has enough district managers to help spread oversight once new locations come online. But Morrison stays current with all his locations, visiting them periodically up and down Interstate 85.

Of course, this all can’t come together without training resources. Morrison says this is a big consideration, especially on the front end with new locations and team members.

“That takes a lot of our time and focus,” he says. “We’ve got a training program session event coming up soon with Tom Staker on the FullSpeed side.

We’ve flown some managers out to his training in Colorado and found that to be very thorough and good. People were excited about going and came back motivated.”

While training support on the corporate side is a great benefit, franchise-level support of team members is the key to sustainable culture. Morrison says that their annual Christmas parties are big hits. Last year, they gave away 30 or so big-screen TVs and some bicycles.

The franchise also has a program that utilizes their talents.

“From time to time in this industry, employees will get into financial burdens,” Morrison says. “We’ve been able to purchase and repair vehicles for employees in need.”

This can make a huge difference for families. Without reliable transportation, school, jobs, groceries and much more can be impacted. They might repair as many as 15 cars in a year for that program, he says.

“We have over 100 employees now, and it’s not uncommon for them to need some help,” he says.

Even with all the investments in people, Morrison’s franchise is on a growth trajectory. He’s looking toward the future with a bigger shop network and an ever-present need for vehicle maintenance.

“Why am I opening oil change shops with this shift to electric vehicles?”

Morrison says in response to a question about EVs. “Until the vehicles can fly, they’re going to need tire and brakes.

If we’re in tires and brakes, I guess it won’t matter.”

What Brian’s award nominator said about him:

“Brian promotes from within, based on merit. He consistently has top online reviews, his customer complaints are low, and the ones that do come through are quickly resolved. A large number of employees have been with him for years and come from diverse backgrounds. Brian is engaged with the communities in which his centers are located.”

From John McCloskey, franchise support director, FullSpeed Automotive

Make Your Workplace Safer and Boost Productivity

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PI T STOP

Tire Pressure Monitoring Systems are quickly becoming an essential add-on, and may require a special touch to service

BY E N I D B U R N S

TIRE PRESSURE MONITORING Systems (TPMS) are standard on any vehicle made after 2007, but have existed as far back as 1985, and can be present on some of those older models.

Technology, however, continues to evolve, and shop technicians will need to keep up on how to handle TPMS and use the monitors to aid in servicing vehicles.

The Basics

TPMS is an electric system alert with a warning indicator located on the dashboard that notifies the driver that a tire is low on air and therefore the vehicle may be hazardous to drive. Some modern cars can actually alert drivers to the specific tire and even the actual tire pressure, while other monitoring systems just signal that one of the tires is low and needs air.

While the detailed information is useful, even basic TPMS can provide additional information that can help determine the amount of air in the tire, or whether the sensor is malfunctioning.

“A solid TPMS light indicates that one tire (or more) is underinflated by 25% (or more) under the recommended pressure,” explains Yanick Leduc, global technical training manager at Schrader TPMS. 30

“A flashing TPMS light indicates that one of the sensors (or more) is not communicating properly with the vehicle,” Leduc tells NOLN. Technicians are advised to pay attention to the sensor light to verify what the warning actually means. Sometimes that involves starting the car a few times.

“The flashing TPMS light will flash only for 60-to-90 seconds, then remain solid,” Leduc details. This is a way to avoid confusion between the two warning light systems. “Technicians should make sure to look at the TPMS light on the dashboard after a full ignition key cycle.”

Two TPMS Technologies

In vehicles, there are either direct or indirect TPMS systems. The former receives tire pressure data from the tire valve through dedicated sensors, though sometimes the sensors are wireless and may have components embedded in the tire. An indirect system is built into the ABS system and provides an approximate reading of tire pressure.

“The indirect TPMS system uses the ABS system and determines the pressure based on the rotation speed of each wheel,” Leduc says. “As a tire loses air pressure, the overall diameter of the wheel is reduced and therefore the wheel will be rotating faster.”

Where the Rubber Meets the Sensor

TPMS might be useful for diagnosing a problem when a car comes into the shop, though technicians need to address tires with care to keep those systems operational.

“It is important to keep in mind that tires are not just rubber anymore,” states Leduc. “There is technology inside and it requires special attention when it comes to the tire mounting and dismounting process.”

This process requires specialized training on “how to position the valve when breaking the bead, and how to position the rim, when mounting and dismounting the tire,” instructs Leduc.

TPMS communicate through radio frequencies as direct systems are typically attached to the tire’s valve.

“TPMS sensors are one of the very few systems that communicate through radio frequency,” Leduc says. “So, the importance of a strong training program and the acquisition of a reliable TPMS diagnostic tool is key to becoming a successful TPMS professional.”

Each time a tire is serviced, the TPMS should be part of that practice.

“The Tire Industry Association (TIA) recommends to service all the wearable components of the valve every time the tire is removed from the rim,” explains Leduc.

When a TPMS fails, replacement kits are available. Leduc does warn that some cars require specific kits.

“TPMS service packs are readily available on the market, as are replacement sensors,” he says. “But these are specific to certain make, model and year of vehicle, so care needs to be taken on selecting the correct pack or sensor.”

PHOTO: 414552982 | DANIEL JĘDZURA | ADOBE STOCK

TPMS BASICS

While an indirect system analyzes the data to alert drivers when an underinflated tire is unsafe for driving, a direct TPMS system uses the actual tire pressure determined from the valve-based sensor to alert when tire pressure and temperature of the air inside the tire reach dangerous levels.

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K E Y I N S I G H T S , T R E N D S A N D S T R AT E G I E S F O R T O M O R R O W ’ S I N D U S T R Y—T O D AY

INTELLIGENT SERVICE: WHAT AI COULD LOOK LIKE IN AUTO

A recent AAPEX webinar looks at what AI could mean for the industry

BY K AC E Y F R E D E R I C K

As discussions arise surrounding the use of artificial intelligence (AI) in different work fields, the question remains of what that could look like in the automotive industry.

A recent AAPEX webinar, led by Predii Founder and CEO Tilak Kasturi and Vice President of Sales and Business Development Mark Seng, dives straight into how it can be best used and what its introduction into the industry will look like.

How Can AI Be Used in the Automotive Field?

Seng points out that while most people utilize AI in their day-to-day lives, the way it functions in the automotive industry will look a little different. Similar to how AI is meant to mimic a human, an AI for the auto industry would be built to function as a service advisor.

Seng uses the example of a driver telling an AI system that he is unable to call someone on the phone while driving. An AI system specialized in automotive issues could pick up on the phrases “call” and “driving” and suggest a Bluetooth error.

Even though shops that have been in operation for the last few years have likely seen a multitude of different problems and scenarios come through their doors, every diagnosis and solution is not remembered by technicians.

AI can be used to leverage historical data from past repair orders and can even be used to help bring inexperienced technicians up to speed with new kinds of jobs. As vehicles become more complex, AI can be a useful tool to train new staff.

Shops frequently experience customers who are inclined to put off maintenance. If a customer agrees to share telediagnostic data with the shop, the shop can provide a more accurate picture of the state their vehicle is in and will have personalized data from the vehicle itself when it’s time to perform maintenance.

In such a case, it could be possible for a driver to be unaware of a potential issue with their vehicle while the AI picks up diagnostic

codes that communicate problems to a shop before any warning lights appear on the vehicle’s dashboard.

While consumers are often concerned about having extra work performed on their vehicles, a shop being able to provide data on the issue can help the customer feel more confident in their choice.

It also helps a shop prepare itself before the problem becomes worse. If an issue is detected and communicated to the shop through AI, any parts or supplies needed can be ordered before the customer even walks into the store.

How Does it Work and How Will it Unfold?

Katsuri opens his half of the webinar by explaining generative AI as an AI system that can generate original content based on data and improves as it gains feedback and responses.

While generative AI has been able to demonstrate success, a lack of sufficient data can cause inaccurate, contradictory and sometimes flatly false responses to be generated. This can be useful for tasks such as creating images or audio, but in a technical field like automotive repair, precautions must be taken to avoid this.

The type of AI in the automotive industry would be able to intelligently answer and respond to questions through the simultaneous use of different data and sources of knowledge that will be applied to a specific make and model of a vehicle.

Though the use of AI in the auto industry has been studied for years, programs such as ChatGPT have only been around for a little under a year, and it’s a technology that is steadily evolving. As it unfolds in the auto industry specifically, it will likely take place in four stages.

The first immediate stage will involve AI being introduced to an organization, mainly in applicable workflow tasks.

The second stage looks at the short-term implementation of AI, which will have trials of organizations experimenting with different AI systems to find one that will keep the questions received and answers generated by the organization’s system safe and secure.

In the mid-term, organizations and businesses can gather enough data from AI that can be used to improve workflows and applications, and for an organization to even create its own generative AI. Long-term, automotive AI will be brought to the consumer, providing personalized data and services unique to them and their vehicle’s needs.

However, for AI to be used in the industry to its full capabilities, regulations and standards are essential. Industry leaders such as the Auto Care Association and the Automotive Service Association have become involved in discussions surrounding AI use in the field for precisely this reason.

The ADAPT: Automotive Technology Summit takes place Dec. 4-6 in Rosemount, Illinois, and covers pressing technology topics that affect your shop. Learn more at adaptsummit.com

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WORKING AROUND HYBRIDS

It takes training and good marketing to transition your shop to handle hybrids and EVs and attract a new customer

THE HYBRID VEHICLE SECTOR continues to grow. A recent report from research firm Fortune Business Insights stated that the hybrid market will grow from $157.48 billion in global sales in 2019 to $280.75 billion by 2027. That accounts for a significant increase in hybrid vehicles on the roads, and those cars will require service as they rack up miles.

With four levels of electrification: mild hybrids, full hybrids, plug-in hybrids and electric vehicles with range extender hybrids, it is clear that each level requires an increased skill level–though it is certainly achievable to integrate hybrid and even EV services into a quick lube business.

You may already see hybrids pulling into your shop for oil changes.

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Yet, there are a number of additional services to offer these clients. Some services are just like those offered to combustion engines such as changing fluids while others require new skills and tools to perform.

Training and Safety are Key

The first step in the process is to find a class or other training opportunities.

Designate one or more technicians and enroll them in training. There are both online and in-person programs available, including training centers that may require travel for the team, or education programs that will travel to your shop to immerse the staff in training.

About 15 years ago Eric Carlson, owner of Ervine’s Auto Repair and Grand Rapids Hybrid and EV in Grand Rapids,

Michigan, decided to advance his auto repair business to include hybrids. He and his wife bought a Toyota Prius–one of the early entries in the hybrid market –and enrolled in a week-long class in Massachusetts outside of Boston.

“My hope at that point was to service one (hybrid) a month,” Carlson says. In the time since, business has grown to two-to-four hybrids a day, on average.

“It’s been very good for our business.”

The training was an important first step. It should always begin with a lesson in safety, and it is important to understand that the hybrid vehicle has a high-voltage battery and requires safety equipment such as proper gloves when handling.

Safety is first and foremost in any lesson.

PHOTO: 90527645 | COBZCONS | ADOBE STOCK

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“Training doesn’t have to be a lot,” says Carlson. “It has to encompass safety. The first things they discuss are safety.”

Getting this training is no different from other automotive repair and service in the results.

“Your confidence level goes up,” Carlson tells NOLN. You’re able to feel like, ‘This is something I can do.’”

One advantage to in-person classes is exposure, as you’ll “rub shoulders,” as Carlson puts it, with other technicians, owners and instructors. You may learn about tools and equipment that other shops are already using, and practices that might not come up in more structured online training.

While there are many tools to be had, “You don’t need a lot of that stuff,” Carlson explains. “When we first got into it, I had one meter and a set of gloves. Since then, we’ve bought other tools.”

Getting Staff On Board

While hybrid vehicles have been on the roads for a number of years, it is still a relatively new segment of vehicle repair for many shops. It will likely be necessary to train current or new employees rather than expect to find mechanics experienced with hybrids.

Carlson explains that at Ervine’s, they do include phrases such as “hybrid training preferred,” in job postings, however the “we will train” is typically what brings in applicants. After 15 years of experience with hybrid vehicles, Ervine’s typically trains employees in house or signs workers up for virtual training sessions.

“We train mainly in house. We start them out on basic safety,” Carlson details. “What we look for, where we look for it, why there’s high voltage here and why there isn’t (high voltage) when we turn it off.”

Ervine’s has seen technicians go from no experience or training with

hybrid vehicles to quickly achieving certification with ASE. Carlson recommends that shops new to working with hybrids send one or more people to in-person training.

“They have to send somebody to get their feet wet,” he says.

“Once somebody becomes your resident expert, everybody will readily take to it,” states Carlson.

The lead technician, who received training first and will quickly gain experience, will likely become the go to staffer when issues come up. The rest of the team can then look to this employee for help and answers. Though Carlson expects the whole team will gain valuable experience quickly.

Dealing with the Batteries

“There’s plenty of money to be made in hybrid repairs,” Carlson says.

Hybrid owners want to keep their cars longer.

“We’re tree huggers. We like to not waste money on buying cars every few years,” Carlson relates. “They’ll keep them and try to get 300k miles out of them. You can’t do that without repairs.”

One of the major repairs that comes up is battery replacement. While there are several maintenance and repair tasks that can be performed without gloves, when dealing with the battery, those aforementioned gloves and safety precautions are essential.

The manufacturer is another important factor, as each brand may require specific batteries, tools and procedures. Once the shop has the skill to replace batteries, your team may just draw service from dealerships. Carlson says customers have called him from the waiting room of a dealership and left to get their battery replacement at Ervine’s. One customer notably drove several hours–and past countless dealerships and shops–from Detroit to get his battery replaced at Carlson’s shop.

“We’re cheaper,” Carlson explains, when it comes to competing with the dealership. The shop also has experience of putting in between 50 and 100 hybrid batteries over the years.

In addition to price and experience, Ervine’s customers are made to understand the shop wants to service the car, “Whereas the dealership fobbed it off on whoever complained the least.”

We’re tree huggers.

We like to not waste

money on buying cars every few years ...

They’ll keep them and try to get 300k miles

out of them. You can’t do that without repairs.

–ERIC CARLSON, OWNER

OF ERVINE’S AUTO REPAIR

Hybrid Services

If changing batteries with high-voltage risks and protective gloves is intimidating, the shop can still get into upselling services to hybrid owners, and even perform services with the gloves off.

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–ERIC CARLSON, OWNER

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Some of the same service customers need for combustion engines, such as fluids and fills, filters, tire rotations and everything else an engine requires for maintenance can be taken on with little extra training.

“In my opinion it’s almost more important a hybrid engine’s transmission fluid is changed,” Carlson offers.

“The engines are electric, high heat, moisture and tiny fragments of metal can wear through insulation on the motor windings. There’s no filter in there to help filter the fluid out. A drain and fill is critical to do that.”

Carlson says it’s easy to change fluids once you’re under the hood. What is important to know, however, is that many transmissions require their own specific fluids.

“Go with whatever the original equipment manufacturer requires,” he advises.

In addition to an oil change, hybrid vehicles require some of the same fluid services such as transmission and brake fluid. Coolant is important, and many hybrid models have two or three coolant systems.

“There’s plenty of opportunity for maintenance that doesn’t require repair work,” Carlson assures.

It’s a Wrap

Marketing your hybrid services is another necessity. When Carlson and

his wife bought their first Prius, the family-owned and family-run Ervine’s got the car wrapped with the shop logo. The service shop acquired additional hybrid vehicles, with branding wraps, and began to offer those cars as loaners for customers whose cars were being serviced.

“We have eight loaners now. If you were to get into this, get a loaner vehicle,” Carlson suggests.

Some of the hybrids the shop has acquired for loaners were from customers who opted not to replace the battery and sold the cars sometimes for just a few hundred dollars.

Once the shop acquires a vehicle for a loaner, however, maintenance may be required.

“Don’t give somebody a dented up loaner. Offer something you would expect a rental place to offer. Everything needs to work, there can’t be any cracked glass. Your loaner vehicle needs to be clean,” Carlson says.

“Exude good service.”

The loaner will not only go far to develop a good relationship with the customer it may increase the service with that customer.

“Loaner vehicles will garner more upsells than just about anything else you’ve got,” Carlson finds. “You can relax and take your time with repairs and service.”

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C A S E S T U DY

HOW TO BE A CUSTOMER LIAISON

An informed customer will keep coming back

102875689 | SYDA PRODUCTIONS | DREAMSTIME

BY P E T E R S U C I U

SOME CUSTOMERS WHO DRIVE into the shop for an oil change or other maintenance will have read their vehicle’s service manual cover-tocover. Most likely haven’t been as thorough, yet still understand the basics, and then there will likely even be some who forgot the manual was ever in the glove compartment in the first place.

The Challenge

As the level of knowledge about an automobile can vary among a shop’s clientele, this makes the role of a “customer liaison” all the more important today. There will be the customers who are self-confessed gearheads, those who think they know it all from YouTube videos, and still others who know practically nothing about their cars

except how to drive them. The latter variety may even be driving their vehicles into the ground from not knowing the essentials.

Regardless of the customers’ knowledge, it is important that the customer understands the importance of maintenance. Handling this can make a business stand out and turn the next customer into a regular client who will return time and time again. However, this presents unique challenges to a shop, and some customers may need to be educated a bit more, while others may think they understand the problem better than those in the shop, says Daniel Wilson, regional manager of Big Ray’s Express Lube locations in Northern Illinois.

“One issue is that there are a lot of YouTube videos that can provide just

One issue is that there

are a lot of YouTube videos that can provide just

enough information that the client may think they know more than they do.

–DANIEL WILSON,

REGIONAL MANAGER

OF BIG RAY’S EXPRESS LUBE

enough information that the client may think they know more than they do,” Wilson tells NOLN. Shops will have to face customers who are as diverse as the cars they drive.

The Solution

It would be easy to suggest that the solution is to tell a customer, “Don’t worry, leave it to us,” but in fact that is actually the worst thing you can do, says Wilson. Instead, shops need to have an open line of dialog.

“After talking to our mechanics and techs, I was told what is most important when it comes to being a good liaison with the customer, and it SEPTEMBER 2023

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is simply being honest,” Wilson, who tells NOLN that he makes it to all eight of his locations across Illinois at least once a week, explains that the shop needs to be as informative with the customer as possible.

Just as a picture will tell a thousand words, showing customers where there is an issue or potential problem with their car can be an easier way to build confidence.

“If a car comes in and has something out of the ordinary, it is our job to explain why this is an issue, how it can be resolved and if necessary physically show the customer,” says Wilson. “We can tell them, but I’ll say that nine out of 10 times it ends up with us physically showing them.”

The result is often a “light bulb” moment for the customer.

From here, the customer liaison can be honest and upfront about the

severity of the problem. Is it something that needs immediate service, or is it something that can be watched and dealt with later?

“It would be easy not to alert a customer to a future problem,” suggests Wilson. “But that would be a mistake.

If we don’t tell the customer, we look like we don’t care. At the same time, we don’t want to make it seem like we’re pressuring them into work that may not need to be done. This is where talking to, and if necessary showing, the customer what we’re dealing with, they’re more informed.”

Wilson says this is what he describes as preventative maintenance, which he tells customers can help ensure that they don’t have problems down the road–proverbial or actual.

“We let customers know what is due, and we don’t pressure them,” says Wilson. “We give them the information, and

We’re in a low-trust

industry, and that is why I

make sure with my crews that we go further to build that trust with our clientele.

–DANIEL WILSON,

REGIONAL MANAGER

OF BIG RAY’S EXPRESS LUBE

tell them to consult the manual and look it up if they need further proof.”

Shops also need to make sure they’re staying up to date with recalls and other issues.

“I recommend that you start with the right website, including those from the OEM. That way we can turn to the customer and know what we’re talking about. This can include looking at past

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recalls,” says Wilson, who says that at his weekly meetings with the shops, he makes sure the teams know about any product recalls, problems they’ve encountered and even new offerings.

“We also make sure that we’re familiar with the vehicle manuals,” says Wilson.

“These were produced by the car makers, so it is from the definitive experts.”

The Aftermath

By informing the customer of any issues, and conveying these facts honestly, the shop can build a potentially long and lasting relationship.

“Absolutely 100% it is all about transparency, truth and trust,” he adds.

“We’re in a low-trust industry, and that is why I make sure with my crews that we go further to build that trust with our clientele,” Wilson continues.

“Our job isn’t just to make money – we all need to pay the bills and put

food on the table–but we have to understand our customers are in the same boat. So, we need to inform the customer of issues so they can keep driving and doing what they do in their lives.”

Of course, there will still be times when some people aren’t going to let the “truth” get in the way of their opinions. Wilson suggests with those customers, you can explain the facts and may have to leave it at that. The same is true with reviews. The bad ones need to be addressed, but it can absolutely never get confrontational.

“We make sure that our bad reviews get a response,” Wilson tells NOLN. “But if you come at us hard, and it is clear that you don’t want to listen, then you will get the truth and nothing else.

We don’t argue. There is no point. We also know that you can’t make everyone happy–it just isn’t possible. But I’m

proud to say we have 700 plus reviews and only a dozen bad ones.”

The Takeaway

In some businesses, there is a fear that if the customer knows too much they may not need to come back. Wilson maintains that is the opposite with the quick lube business. People know how to change their oil, but they’re coming to the shop because they are willing to pay for the service and save time.

There is no magic to it, and thus there shouldn’t be unnecessary drama.

“I believe in an informed customer, as you have less drama and less misunderstanding, simply put,” says Wilson.

“I do this job with a clear conscience.

So do my guys, who are like family to me. We operate on a very basic principle, ‘How would you want your mother or grandmother treated if they drove up?’ We take it from there.”

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Kevin Weaver is living his best life.

At 57 years old, he’s in better shape than he’s been in years—he’s cut some carbs and dropped more than 50 pounds well ahead of his fall schedule.

Weaver is also operation manager of In-NOut Lube, the two oldest quick lube service stores in Fort Worth, Texas. One was built in the mid-seventies, and the one he operates was constructed about ten years later.

So what’s the secret to long-term success deep in the heart of Texas?

“If I knew that, I’d make a million bucks!” he laughs. “Finding people to work in the industry, maybe—the right people. Employee retention. I’ve been lucky to surround myself with smart people.”

But smart people can only do so much— when they’re equipped with smart products, increased revenue isn’t a possibility; it’s a certitude.

Adapting with the Industry Weaver began his shops’ relationship with DuraMAX (a RelaDyne brand) about ten years ago and hasn’t looked back. They began as his shops’ secondary supplier and he cites excellent supply-side customer service as an added bonus.

But the industry changed (as it always does) and his primary supplier kept raising prices and Weaver wasn’t able to offer the same value to

his customers and soon looked to his secondary option as a primary supplier and partner.

“DuraMAX kept the price on synthetics and semi-synthetics low and always fair,” he says, “which allowed us to not enforce dramatic price hikes on our customers. As competitors raised their prices, mine didn’t go up nearly as much—they went up $5, I went up $1. It kept me in the market.”

Weaver notes that today’s customers aren’t brand loyalty fanatics like many of the drivers of old; instead, they’re value and experience connoisseurs who look to Google and Yelp to find what they need. He also says that RelaDyne has exceptional products across the board and has helped lower his cost of goods.

“Pricing is important, of course,” he says, “but today’s drivers just want to make sure the car runs. RelaDyne has always been exceptional, and the signage package was great. They help with tanks and anything else we need—it’s a really great and appealing program.”

And that program delivers. Weaver carries all the DuraMAX oils, oil filters, air cabin filters, coolants, wipers and more. He even carries some of their secondary lines, such as Rain-X, “and if they don’t have it or can’t get it to us, they’ll find someone who can or provide a similar product at negligible cost and inconvenience to the store.”

Now, Weaver is able to foster a consistently loyal customer base who trust his products

and, in turn, trust him and his team to provide high quality quick lube service.

“Once you have a consistent clientele who trust your prices, that’s definitely good for business,” he says.

“DuraMAX has increased our profits. We can keep good quality products without paying premium prices, and in this market that’s a good thing. If you buy filters through an outside supplier, it could be 50 percent higher than this time last year.”

Weaver says that switching oil providers didn’t affect car count in any way and that InN-Out Lube anticipates getting through another pandemic summer without a single hiccup; in fact, they’re having a great year.

“We always want to improve,” he says, and that the business model and services offered

by RelaDyne and the DuraMAX line of products is the future of the industry.

“I recommend them to everyone,” he adds, “and though they have a smaller foothold in Texas, this is where the market is going. I see competitors’ prices, show others what I pay and everyone benefits. They’re competing with big companies and helping us be successful in the process.”

It’s been a banner year for Weaver and In-N-Out Lube, and with a partner such as RelaDyne, who knows what’s next? Maybe that million-dollar secret.

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c

LEADING EDGE

The Power of Wordsmithing

LENNY

SAUCIER

Lenny Saucier has been serving the automotive aftermarket and its future leaders since 2000. He serves as the director of retail training for Fullspeed Automotive.

LSAUCIER

@FULLSPEEDAUTOMOTIVE.COM

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DID JULIET HAVE IT WRONG? WHEN A YOUNG Juliet proclaims her desire for Romeo on that balcony, she denounces the nature of words when she proclaims, “What’s in a name? That which we call a rose by any other name would smell as sweet.” Understanding her own desires, she downplays the family name of her lover.

While she yearned for simplicity to obtain what she truly wanted, she did not truly understand how the words Montague and Capulet could cause such destruction in her life. The very defiance of the power of words ultimately cost the lives of her and her lover.

The poor use of words in history has cost many careers and lives. Not understanding their intended market, Chevy brought the Nova to Mexico and didn’t understand why it would not sell (Nova translates to “no go” in Spanish.) Orders sent down military ranks delayed a major battle in World War II when “if at all possible” was used, casting doubt on the true intent of the directions.

The Cold War almost took a turn for the worse when a phrase that translates to “it’s your funeral” was translated as “we will bury you,” almost erupting into a nuclear attack.

Failing to properly communicate with your guests is equally as consequential (well, to your bottom line). When a guest is upset because they changed out their air filter and the A/C is still hot, they tend to think you ripped them off. The simplicity of failing to elaborate on the function of the filter puts you automatically in the wrong.

Lack of words causes confusion with your team.

Many moons ago, a young and dumb kid was working at a Taco Bell when he was pulled to the storage area in the back by the manager and told to, “Clear all of this out and throw it away.” To the surprise of the manager, everything in the room was cleared out and thrown away. Even the shelving ended up trashed.

And yes, I was the young and dumb kid following directions to the letter.

Proper wording can cause as much good as improper wording causes harm. Utilizing the right words in your dialog (internally and externally) changes the very nature of your actions. “I want,” “I need” and “I should have” all shower us with contentment and dreams. Whereas “I am working

on,” “I will” and “I am” set us mentally on a path to accomplish our goals.

In my house, the word “impossible” is forbidden.

In the epic words of Bruce Wayne, “Everything is impossible until someone does it.” Imagine if it was impossible to sail to a new world because you would fall off the edge of the earth. What if it was impossible to talk to people instantly around the world? Not too long ago, it was impossible to beat cancer (four years strong). The only thing we can do with the impossible is set limits on our lives, and that is not what I want my family to practice.

“I don’t know” gets you nothing in life. If a new hire for some reason answers the phone and the potential customer asks how much an oil change is only to be answered with “I don’t know,” you would more than likely lose that potential business. If your kid answers a question on the test with “I don’t know’ they get the answer wrong and risk failure. This phrase is consistently used as a conversation killer. “Why did this happen? ... I don’t know” is a sure sign of someone refusing to engage in the conversation. To be clear, sometimes you don’t know. You can, however, find out.

This addition puts the ability back on us to take action and continue growing.

Wordsmithing should not be just an art utilized by poets, writers and advertisers. The act of constructing communication through carefully placed words should be used in your service review (Ford recommends the radiator service at 100,000 miles, not you). It should be used in your communications to your direct reports: “Take all of the boxes in this room and throw them out.” It should be used in your internal dialog when you set goals in your life: “I am working on being a good leader.”

It should also be used when mentoring your loved one: “Nothing is impossible, improbable ... maybe, but it can be done once you discover how.” And it should be used on your conquest to be better: “I don’t know yet, but I can find out.”

Challenge yourself, your team and your loved ones to change their conversation. Do not denounce a word for your own selfish desires. Feel free to drop me an email of other wordsmithing successes. I may not know of them, but I would like to find them out.

PHOTO COURTESY LENNY SAUCIER

Words, and how those words are communicated, have an impact

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