NOLN - October 2021

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2021

VOLUME NO.

36

ISSUE NO.

10

DANA LEIGH PHOTOGRAPHY

CONTENTS

OCTOBER

COVER STORY Small operators have unique

challenges and opportunities to

grow their businesses. Learn how to take advantage. PAGE 26

OCTOBER 2021

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CONTENTS

09 ONLINE

The new frontier of fluids 11 EDITOR’S LETTER

Adjust your perception 13 BY THE NUMBERS

How often do you post online?

QUICK HITS 16 INDUSTRY INSIGHT

Is the EV transition slowing down?

18 AROUND THE INDUSTRY

A supplement to API SP is possible 21 ADAPT

A look at EV charger availability 22 SHOP LOOK

Big, bold, and dual-branded

SERVICE 38 PIT STOP

Sharpen intra-shop communication 40 FINANCE+OPERATIONS

The process of selling your operation 42 CASE STUDY

Need a jumpstart? Time to get promotional 44 LEADERSHIP

Identifying that next great hire

COLUMNS 24 FROM THE SHOP

Filling that key position

26 FEATURE

Small Operator Handbook

Running one or two shops doesn’t restrict your ability to grow.

These small operators share their recipes for team success and strong business relationships.

BY M AT T H U D S O N

BY A DA M TAT U M

49 AOCA CORNER

Big legislative updates

BY KRISTY BABB

58 LEADING EDGE

The right ingredients for successful outcomes

BY LENNY SAUCIER

NOLN, VOL. 36, NO. 10 (ISSN 1071-1260), IS PUBLISHED MONTHLY BY 10 MISSIONS MEDIA, LLC, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804. COPYRIGHT ©2021 BY 10 MISSIONS MEDIA LLC. ALL RIGHTS RESERVED. NOLN CONTENT MAY NOT BE PHOTOCOPIED, REPRODUCED, OR REDISTRIBUTED WITHOUT THE CONSENT OF THE PUBLISHER. PERIODICALS POSTAGE PAID AT ST. PAUL, MN AND ADDITIONAL MAILING OFFICES. POSTMASTERS SEND ADDRESS CHANGES TO: NOLN, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804.

6

DANA LEIGH PHOTOGRAPHY

FE ATURES

Close Focus Dan Newell says that running a single shop puts him more in tune with his employees and his operations.

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HOW TO REACH US

571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of NOLN. Past issue single copies are $8.

Go to noln.net/backissues Send letters to news@noln.net.

For high-quality reprints or e-prints of articles in this issue, call 651.846.9488 or email reprints@noln.net.

Opinions expressed in NOLN are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.

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BY T H E N U M B E R S

10.21

VISIT

NOLN.NET TODAY

PODCAST

THE NOLN PODCAST NOLN has expanded its offerings of podcasts, bringing four monthly episodes to the airwaves. The podcast brings operators and industry experts to the screen to go in-depth with the editorial staff on topics that matter to shop owners.

A CLOSE LOOK AT EV FLUIDS NOLN editor Matt Hudson takes a close look at what electric vehicle fluids are out of the market today and what exactly they’re used for.

Explore the properties that EV thermal fluids are important, how these new fluids diverge from those in traditional vehicles, and what lube shop owners should think about as more hybrids and EVs hit the streets over the next decade.

Also be sure to check out the past episode about battery conditioning.

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

FINDING A LEGAL PARTNER

GETTY

When it comes to auto maintenance and repair, there’s an education gap. Attorneys who understand the challenges that shop owners face in their day-to-day operations are few and far between. And as vehicles become more and more complex, the need to have a savvy legal pro in your corner has only become more urgent.

Contributor Megan Gosch speaks with William Ferreira, the attorney behind the California-based Automotive Defense Specialists, Ferreira explains how to bridge the gap and build an attorney relationship that’s well worth the investment.

N O L N . N E T/ L I N K E D I N

N O L N . N E T/ F A C E B O O K

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NOLN NEWS Have you subscribed to the newsletter? NOLN will send the latest industry news, strategies and profiles straight to your inbox. Sign up at noln.net/subscribe.

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EDIT LETTER

CONSIDER THE VANTAGE POINT How is your perspective reflected in your operation?

YOU’VE LIKELY HEARD OFT-REPEATED

phrases like “perception is reality” or “life is what you make it.”

Whether or not you believe in the power of attitude, I invite you to read this month’s magazine and think about how each shop owner’s attitude shows through in their successes—and how you can do the same.

I bring all this up mainly due to the intriguing conversation I had with Mike Agugliaro over the course of reporting this month’s feature story. Years ago, Agugliaro and a partner ran a small electrical contracting outfit. It was tough, scrambling work.

During our interview, he told me about a few moments that gave him

the “a-ha” realization, changing his perspective and putting him on a surer track toward growth. One such moment came when someone asked what he did for a living. Agugliaro started with the auto-response: “Oh, I own a small electrical contracting company…”

That person snapped back at Agugliaro.

“He said, ‘Whoa, whoa, wait a minute.

No you don’t. You own a progressively growing electrical contracting company,’” he recalled.

That was a moment when everything clicked. He went from maintaining the standard of a small company to reaching toward the potential of a bigger operation. He and his partner did just that, growing into a business with 200 employees. Nowadays, Agugliaro co-owns a coaching outfit called CEO Warrior.

Think about those shifts in attitudes, and how it can permeate every small decision and interaction you have throughout the workday. Everyone has heard the attitude adjustment speech, but you have to be willing to do it. Again, from my interview with Agugliaro: “What do you believe?” he asked.

“And what are you willing to do to change that belief?”

This month’s feature story (page 26) features Agugliaro and two operators who have excellent attitudes, and I think that they’ve benefited greatly from those characteristics. Their love for their work was apparent in our interviews, and it showed in the story.

Perhaps most importantly, it shows in shops every day. The operator sets the tone, the staff is having fun and getting work done, and the customers pick up on that atmosphere. It makes them want to take part.

Be sure to catch this month’s Pit Stop article (page 38) on improving communication within a shop, because attitude plays a huge part there. The same goes for our story on identifying talent in the hiring pool (page 44),

10.21

because as they say, it takes one to know one.

Great minds think alike, because Adam Tatum wrote a column this month (page 24) expanding upon that very idea of identifying and cultivating those talented techs for management opportunities. As always, he speaks from experience and offers a guidebook to taking someone from the initial interview to a successful manager position.

You want that new hire to have a positive outlook on the new job, right? Even if they’re doing little more than airing tires and cleaning windows, it’s important to the service process that it’s done with a smile, and that smile is much easier to come by when the attitude is properly adjusted.

I’ll leave you with a brief anecdote of my own. I’m from a smaller town, but I now live in a city. I have a strong distaste for traffic jams and may at times be vulnerable to a little on-road frustration.

When that happens, I try to look around and identify another driver who’s looking calm and collected. I don’t know exactly what they’re going through, but to my eye, they’re showing good attitude, just getting through this traffic heap like everybody else.

It reminds me that I don’t have to be bent out of shape; there’s a better way.

Thinking about it like that, attitude really is everything.

MATT HUDSON

SENIOR EDITOR, 10 MISSIONS MEDIA

OCTOBER 2021

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BY T H E N U M B E R S

10.21

GETTING THE INDUSTRY ONLINE Social media marketing can be one of the most effective customer outreach tools. Plus, it offers free or low-cost solutions.

Most operators have put their operations on at least one social media platform, but how consistent is your outreach to customers? A regular posting schedule helps to maintain that line of communication. Your posts should be professional, personable, and reflective of your shop’s culture.

How Often Do Operators Post?

Daily: 25%

Do not use: 18%

Quarterly or less: 14%

Monthly: 20%

LEARN MORE

Weekly: 23%

In a competitive market, getting your share of customers is the most important part of what we do.

Without those customers, you don’t have a business to advertise. Columnist Adam Tatum describes the different ways shops can get their name known. Check it out at noln.net/BeHeard.

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16

AROUND THE INDUSTRY

18

ADAPT

21

SHOP LOOK

22

FARRELL PHOTOGRAPHY

QUICK HITS

INDUSTRY INSIGHT

SHOP LOOK Regular cleaning and maintenance keeps this bold repair and

maintenance operation in tip-top shape. PAGE 22

OCTOBER 2021

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QH

THE EV TRANSITION IS COSTLY SO FAR

Recalls and staggered adoption rates kick off a transitional period in the automotive world

BY NOAH BROWN

OVER THE PAST FIVE YEARS, THE

presence of electric vehicles on U.S. roads has surged.

According to the Pew Research Center, nearly 1.8 million EVs were registered in the United States, more than tripling from 2016. A recent survey from the center showed around 7 percent of U.S. adults owned an EV or

16

hybrid, and 39 percent said they were somewhat or very likely to consider purchasing an EV the next time they needed a new car.

Despite their increased presence, though, EV adoption in the country has actually slowed quite a bit in recent years and is lagging significantly behind other countries. The same report shows

EVs only account for 2 percent of new car sales in the U.S., less than half the 4.6 percent global average and a figure dwarfed by countries such as Norway (74.8 percent), Iceland (52.4 percent) and Sweden (32.3 percent).

Part of that is attributed to the declining popularity of plug-in hybrid electric vehicles and several EV manufacturers such as Tesla and GM reaching federal tax credit caps on some of their most popular models.

Another, perhaps undervalued, factor in that decline though is a seeming lack of reliability that has hampered several electric vehicle manufacturers in the past couple of years. A report from CNBC shows several recalls have hampered thousands of electric

CHAD RUSSELL

INDUSTRY INSIGHT

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vehicles produced by prominent OEMs. General Motors and Hyundai both spent just under $1 billion on recalls following fires in their Chevrolet Bolt and Hyundai Kona models.

Though data for EV fire rates is hard to come by, the report cites a small data set from the London Fire Brigade in 2019 that showed the rate for plug-in vehicle fires was right around 0.1 percent, more than double the rate of ICE vehicles.

Outside of recalls, questions still surround the durability and longevity of EV batteries still plague the industry. Tesla is still under investigation by the NHTSA for complaints against the startup’s batteries and accusations that it knowingly overstated the

capacity of its high voltage batteries and used software updates and remote battery checks to conceal the defect from customers. The company recently agreed to pay $1.5 million to settle a lawsuit but is still under investigation.

The transition to EVs is, at this point, inevitable. Investments from major OEMs and prominent startups such as Tesla suggest that electric adoption is a matter of when, not if.

Recent actions taken by the Biden administration reinforce that. Hiccups with new technology are to be expected, and the speedbumps manufacturers are seeing were—or at least should have been—a known factor in the EV adoption process.

“When you go from gas to electric, there’s going to be a whole new set of problems you have to deal with, and we just have to figure out how to deal with those issues that you know that we haven’t had to deal with in the past,” said Guidehouse Insights principal analyst Sam Abuelsamid in the CNBC report.

Because of that, however, the adoption of EVs will continue to be a slow process, and ICE vehicles will still have a sizable market share for, at the very least, the next decade.

“Anytime you go into a new area of technology, there’s more to be learned than there is that you know,” Doug Betts, president of J.D. Power’s automotive division, told CNBC. “There are risks, and there are things to be learned.”

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QH

AROUND THE INDUSTRY

TIRE SHOP PROPERTY TO BECOME TAKE 5 IN N.C.

A local tire shop will make way for a Take 5 Oil Change in North Carolina.

The former site of Boone Tire Center in Boone, N.C., will become a Take 5. The tire shop closed after 40 years in business, reports the Watauga Democrat.

An entity called Take 5 Carolinas Property purchased the site for $690,000, the paper reported.

GREASE MONKEY, MASTER LUBE PARTNER TO HELP CHILDREN

TBC Corporation announced in a press release that it has partnered with Valvoline to support Aligned in Hope, a program to benefit Ronald McDonald House Charities.

The program started in 2020.

During September, Valvoline will make a donation to the Ronald McDonald House Charities of Bluegrass in Lexington, Ky., the release says.

“We are honored to partner for a second year in a row with TBC Corporation in support of RMHC of the Bluegrass in its mission to create, find and support programs that directly improve the well-being of families. This is something incredibly meaningful to Valvoline every day,” Valvoline CEO Sam Mitchell said in the release.

AUTOMAKERS REQUEST API TO DEVELOP SP SUPPLEMENT

Several automakers requested the lubricants group of the American Petroleum Institute to add a supplement to the API SP specification.

The letter, sent on August 18 by Ford, GM, Stellantis and Toyota, requested an aged oil test for protection against lowspeed pre-ignition in turbocharged gasoline direct injection engines, according to a report from Lubes ‘n’ Greases.

“We request that the supplement

18

include all the performance requirements presently in API SP plus the requirements of meeting the limits set for the aged oil LSPI performance of a lubricant,” said Ford Motor Co.’s Michael Deegan, chairman of the International Lubricants Standardization and Advisory Committee.

The letter said studies have shown the potential for damage from low-speed pre-ignition increases as engine oils age.

JIFFY LUBE LAUNCHES EV REPAIR PILOT PROGRAM

Jiffy Lube is experimenting with a complete service package for electric vehicles at seven stores across the country.

COURTESY VALVOLINE

TBC, VALVOLINE PARTNER TO SUPPORT RONALD MCDONALD HOUSE

Two regional quick lube operators have joined forces to help disadvantaged children.

Grease Monkey of Clinton, Utah, has partnered with Master Lube of Roy, Utah, to work with the Utah Weber Fraternal Order of Police on a program that aids children. The program is also a collaboration between the police departments in the Utah towns of Weber and Morgan, according to a press release. Officers, public safety employees shop with local kids for items like shoes, clothing, school supplies and backpacks.

“Our business and crew teams recognize the importance of not only providing honest, trustworthy, and convenient preventive maintenance service, but to also engage and get involved in our community needs,” market manager Ryan Slade said in the press release. “In today’s world, we all feel the need to be the change, and to help police officers build positive relationships with kids and their families is a program we will continue to stand behind.”

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The package, called the Electric Vehicle Signature Service, is a pilot program to see how well the company can handle EVs in their shops, according to a report from Forbes. The package includes general services such as multi-point safety inspections and tire rotations, as well as more focused offerings geared toward an EV’s battery.

“Consumers have really transitioned to wanting more of a one-stop shop for all of their auto-maintenance needs, and we’ve evolved,” Jiff y Lube President Edward Hymes said in the report. “Maintenance now is much more important in how consumers view vehicles ... it’s an investment for them, and they want to maintain it for longer.”

The seven shops are located in California, Oregon, Texas and Florida, which have a higher number of EVs on the road.

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Safe Multi Surface Cleaning

sm

IC NON-

Get more industry news at noln.net

www.oileater.com

X TO

Team Car Care, a Texas-based franchisee of Jiffy Lube, recently awarded several scholarships to members of its team and their families.

The brand gave away four $2,000 academic scholarships earlier this summer.

Three employees—two in California and one in Illinois—as well as the daughter of an employee in Minnesota were this year’s recipients, according to a news release.

“This award will allow me to concentrate more on my schooling and take away the financial stress that college can bring,” recipient Emmanuel Maldonado said.

“Thanks to you, I will be able to lessen the financial burden on myself and my family, helping us tremendously in this unpredictable time we are going through.”

PrimeLube Lube Prime 1-800-634-4615 1-800-634-4615 RelaDyne RelaDyne Great Lakes Lakes 708-599-8700 Great 708-599-8700 Mid-South 318-368-3101 Mid-South 318-368-3101 Midwest 800-786-2803 Midwest 800-786-2803 Northeast 800-352-2776 Northeast 800-352-2776 RelaDyne Oklahoma 800-256-5017 800-256-5017 Oklahoma Great 708-599-8700 SouthLakes 800-256-2512 South 800-256-2512 Mid-South Southwest 318-368-3101 713-747-7411 Southwest 713-747-7411 Midwest 800-786-2803 West 801-561-4251 West Northeast West 801-561-4251 Texas800-352-2776 800-588-4662 Reisner Oklahoma 800-256-5017 ReisnerDist Dist 1-800-293-2197 South 800-256-2512 1-800-293-2197 RowleysWholesale Wholesale Southwest 713-747-7411 Rowleys West 801-561-4251 1-800-769-5397 1-800-769-5397 Reisner Dist 1-800-293-2197 Rowleys Wholesale 1-800-769-5397 Sampson-Bladen Oil Co 1-800-341-9266

Call 1-800-528-0334 for questions or samples Sampson-BladenOilOil Sampson-Bladen CoCo 1-800-341-9266 1-800-341-9266 S&E Distribution Service Champ 1-888-251-2609 1-800-221-0216 Service Champ 1-800-233-9041 1-800-221-0216 Steve Shannon Service Champ 1-800-233-9041 Automotive Warehouse 1-800-221-0216 Steve Shannon 1-800-343-8473 1-800-233-9041 Automotive Warehouse S&E Distributors 1-800-343-8473 1-888-251-2609 Superior Lubricants, Inc. Tyree Oil Tyree Oil 716-260-1687 1-800-669-0760 1-800-669-0760 Steve Shannon Whitfield OilCo. Co. Whitfield Oil Automotive Warehouse 1-888-394-3835 1-888-394-3835 1-800-343-8473 S&E Distributors 1-888-251-2609 Tyree Oil 1-800-669-0760 1/16/19 11:39 AM Whitfield Oil Co. 1-888-394-3835

OCTOBER 2021

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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

acceptance of electric vehicles, both here in the United States and around the world.

High cost, a perceived lack of reliability and other large accessibility issues continue to plague the EV industry, even as the federal government and major OEMs continue to throw their weight and resources behind widespread adoption.

Those issues will resolve with time. As EV technology becomes more commonplace, prices will fall, and the systems used to power and run those vehicles will become more reliable. A more pressing yet seemingly undervalued issue facing the EV industry is the lack of consistent, reliable charging infrastructure.

A quick look at the U.S. Energy Department’s EV charging station location map reveals large clusters of EV chargers near densely populated urban centers and large, empty spaces in between. Even as battery technology becomes more robust,

THE EV SUPPORT HURDLE

BY NOAH BROWN

GETTY

The transition to electric vehicles promotes innovation and, depending on who you ask, will provide auto manufacturers more efficient ways to produce faster and more reliable vehicles.

The transition is nearly inevitable—President Biden’s executive orders mandating half of all new car sales to be EVs by 2030 and OEMs investing massive amounts of resources into that push all but guarantee that.

That transition, however, has proven to be a fairly rocky road at times. There are no shortage of hurdles to widespread

D E C E M B E R 5 –7 • N A S H V I L L E , T E N N .

most EVs are topping out somewhere right around or below 300 miles of range on a single charge. While that proves to be a non-issue for urban drivers, longer drives become almost impossible when combining the range and the hours-long charge times required to completely re-energize a vehicle.

The key issue here is short-term feasibility and profitability versus long-term adoption. In order for consumers to be more comfortable purchasing EVs with regularity, the infrastructure has to already be in place. It can’t happen the other way around.

That’s going to cost a lot of money and won’t provide an immediate return on investment. A recent study from AlixPartners cited in a Car and Driver report shows that a fastcharging station with market-priced rates will take upward of 25 years to earn back its initial investment.

Recent legislation from Congress looks to help shoulder some of that cost. The recently passed $1 trillion infrastructure bill sets aside around $7.5 billion for EV charging infrastructure. Earlier this month, a group of 28 U.S. House Democrats asked for a significantly larger allocation of $85 billion to be included in a highly contested $3.5 trillion infrastructure proposal. Though that measure is less likely to pass, it still shows a willingness to discuss more substantial EV infrastructure upgrades. Private companies, such as Tesla, making their charging universally available also helps adoption.

The bottom line, though, is there needs to be a significant investment in equitably distributed charging stations on a national scale in order to make the transition to EVs as smooth as possible.

ADAPT: Automotive Technology Summit. Have you snagged your ticket for the ADAPT: Automotive Technology Summit? Head over to adaptsummit.com.

To register and check out the full two-and-a-half-day lineup.

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QH

S H O P LO O K

SPEEDEE-MIDAS OF JACKSON, CALIF. OPERATOR:

JAY DHILLON

LOCATION:

JACKSON, CALIF.

STAFF SIZE:

10

SHOP SIZE:

10 BAYS

AVERAGE CAR COUNT:

28.5

TICKET AVERAGE:

$125

BY MAT T HUDSON P H OTO S BY FA R R E L L P H OTO G R A P H Y

22

BUILT RIGHT Franchise owner Jay Dhillon acquired this building in 2018, and it was built a decade before that.

While it’s a massive facility as far as quick lube and repair shops go, it’s actually modest compared to the original plans.

“It was originally supposed to be larger than that,” Dhillon says. “But they downsized it.”

The shop includes a second physical building across the parking lot.

Dhillon says that he saw a

few tenants cycle through before deciding to acquire it himself. It serves as a support space for the main co-branded SpeeDee-Midas shop.

Altogether, Dhillon’s is a spacious facility with great curb appeal that stands out in his market.

“Jackson is a small town, so there’s not a lot of construction that goes on,” he says. “Having a modern building definitely helps our customer base come in. If you have a spit-shined building, it just helps.”

SMALL IMPROVEMENTS Being a newer building, Dhillon says he knew that he had a solid foundation to work with. The layout includes two pit bays for quick maintenance, which have a shared basement area.

Overall, there has been little maintenance needed.

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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

“The only thing that we’ve ended up doing to the building so far is that we re-epoxyed the floor when I took over,”’ he says.

He also upgraded some of the tire equipment and added some customer amenities to the customer waiting area. With a modern building to start, he found ways to add nice touches to enhance the experience.

“We did put in a nice barstool counter looking out on the shop for anyone who wants to work on a laptop or anything else,” Dhillon says.

TRUE VALUE IN PEOPLE Of course, even the nicest facility can still become poorly maintained. Dhillon says that this Jackson shop stays in great shape thanks to the team on site that takes cleanliness seriously. It makes a huge difference in the customer experience and makes the building really shine, he says.

“I’ve been to a lot of shops, and I’ve never seen the shop as clean as the one there,” Dhillon says. “That’s a testament to the team.”

Leading the charge on site is the shop manager, who is also the lead mechanic, who has been there since 2010.

The lead lube tech and assistant manager has been there since 2009.

With the focus on daily maintenance, the building speaks for itself. Follow that up with a solid service process, and Dhillon has a successful location on his hands.

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c

FROM THE SHOP

The Golden Goose

The challenge of finding great leader for management

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

@VALUBE.COM

24

in this industry is management. Not just any management, but great leaders.

Sure, some of you have the battlefield commission running the store effectively or the veteran that has hit a ceiling, and that is good enough. But to be truly successful, you need to be great. You are looking for positive, motivated, and hungry women and men for these roles. But therein lies the real challenge. How do you identify and cultivate this in your business?

First, you must evaluate your own talent to see if you have any great leaders already in place. Are their stores clean, profitable, and not for lack of employees? Are they teaching and training their assistants to be managers? If you have some of these, then you are on the right track. Use these leaders to help cultivate your new opportunities.

Each of you have your own expectations for the role of a manager in your business. Some of you need strong salespeople and some need those that can delegate and follow up. Only you know what you are looking for, so it could be easy to identify internally.

Now that you know who does and does not cut the mustard, you must decide what route that you want to take to get the replacement. Many of you will try to go about this on the cheap side, doing free ads on Monster, Indeed or another online hiring portal.

These are great tools for you to use, but in this case, the applicant needs to be actively seeking a job.

Consider putting together a budget each month for recruiting. I use Indeed search. It is only $250 per month, but I get up to 100 contacts per month. That means I can search “manager,” and it will bring up a list of the resumes in the area with that job title or skill. Want to take a shot at your local Valvoline Instant Oil Change center employee? You might just get lucky and see their ad online.

Doing the interview is just as important as the recruiting. Once you have them in front of you, do they look the part? How are they dressed? How do they speak? What is their experience level?

Let them do most of the talking to get a good feel for them. Once you get to this point, make sure that you set your expectations. This is what you do, and this is how you do it. If at the end of the interview, the feeling of moving forward is mutual, you onboard them and keep going. This is the point where you either make a great leader or just another manager. Are they shown how to do the paperwork and shoved into a role, or do you take the time to train them properly?

The Next Step: Training This leads me to the final piece of the puzzle: the training plan. How many of you have a company training plan? Some of you will have corporate programs, like Jiffy Lube or Valvoline. Others of you reading this are independents and feel the need for a structured training plan is not needed, as it’s all in how you do your processes. Well, that is the start of a plan. The best way to train your people and build your culture is to put the pen to paper. You will make mistakes, as that is how we learn. If this is not for you, look for outside training tools. Your parts stores and even your vendors have training programs online that you can utilize. In the ever-changing automotive environment, staying status quo should not be your answer.

It’s a lot of work, I know. But with hard work and a few changes within how you do things, you can create a pipeline to move from looking for exceptional employees to cultivating your own. So simply put, if you want to find great people to run your businesses, all you have to do is perfect the process.

Look for the talent, speak to the talent and train the talent.

LUCAS MOORE

THE ONE THING THAT YOU ALL NEED TO BE SUCCESSFUL

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?

What’s my business worth?

How do I grow my business?

Is now the right time to sell?

How do I create a succession plan?

Questions about the future of your business?

Valvoline can help.

We offer independent owners like you a variety of resources to help answer pressing questions about the future of your business. Contact us for a free, no obligation consultation.

Learn More

www.ValvolineQuickLubes.com Call Gayle McMillin at (859) 357-7303

TM

Trademark, Valvoline or its subsidiaries, registered in various countries.

SM

Service mark, Valvoline or its subsidiaries, registered in various countries.

OCTOBER 2021

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S M A L L F O O T P R I N T , H U G E I M PA C T

By Matt Hudson

26

Photography ­— Dana Leigh Photography, Scott Finney Photography

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ohn Malek knows when new customers are coming from some of the bigger chains. He says that his Florida shop will gain 20 new customers weekly during hot streaks. He’s got the paperwork to prove it.

“We actually take their stickers, believe it or not. We know where our customers are coming from,” Malek says. “If you're a first-time customer today, we take that sticker and at the end of the day, we put them all on a piece of paper.”

That paper is a totem of customers who have defected from the area’s chains and came to his shop: Mr. Oil Xpress Lube of Sebastian, Fla. The three-bay shop has had an impressive turnaround under Malek’s operatorship, and it doesn’t show signs of slowing down. When he took over about five years ago, the shop was doing up to 35 cars daily.

This spring and summer, with drivers getting back out on the roads, he’s seeing a surge.

“We're doing an average, right now, of 90 cars per day, six days per week,” he says. “And we’ve done as much as 135 cars per day.”

Malek’s geographic reach extends only to the edges of that single commercial property along Florida’s U.S. Highway 1, but his industry impact goes much farther. As a single shop owner, he’s having a great time.

Growth is a great thing for the quick maintenance industry, whether it’s new operators opening their first shops or big operators serving thousands of cars across states. But it’s hard to overlook the strength and attention that single-shop owners bring to the industry.

Turnaround John Malek acquired says that operating a single shop allows him to focus on the most important asset: his customers.

Smaller shop owners, those with one or two locations under management, make up most of the respondents in the 2021 NOLN Operator Survey, which provides the added context to this report.

The result is a celebration of the smallscale operators, who bring traits that lube shop networks of any size can find valuable for success.

Market Motivation

The insight that Dan Newell received by working at a nearby shop helped him to build his own operation. It all started shortly after 2010, when Newell left a career in NASCAR and found himself in between jobs. He took a gig working at a Grease Monkey in Mooresville, N.C. Newell and his wife, Sheila, became interested in the business and started

thinking about starting a shop of their own. A couple years later, they found the perfect fit with a nearby seller and purchased their own Grease Monkey in Salisbury, N.C. Newell learned early on that servicing customers isn’t the same from one location to the next.

“I learned very quickly that even though the Mooresville store is 25 miles away, it’s a whole different world over there,” he says.

Mooresville, situated near Lake Norman, has a much higher median income than Salisbury. Newell says that he didn’t see sales of added preventative services as often, because the clientele bought and sold vehicles more often.

“Versus Salisbury, which is very blue collar. It’s like, ‘Yeah, I need you to work on my car, because it needs to last,’” Newell says.

That kind of insight can change a shop’s inventory and sales strategies.

Newell’s shop in Salisbury might sell more periodic preventative services than at a location where customers

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S M A L L F O O T P R I N T , H U G E I M PA C T

think more short-term about their vehicles. Try to push those services too hard in the wrong market, and you’ll just find a higher failure rate.

This is essential advice for the single shop owner, whose success is tied to that one market. But even for large networks, it’s important to look locally at each location and make changes that fit the local clientele.

“You have to know your avatar,” says Mike Aguliaro, cofounder of CEO Warrior. “You have to know your customer really well.”

Agugliaro has been training small business owners to become successful CEOs for years. He started by building his own small electrical contracting company with two employees into a company with 190 employees and $32 million in annual revenue at its height.

After selling his electrical business, he’s grown his coaching outfit, CEO Warrior, to encompass business owners from many fields.

The concept of a customer avatar is important, he says. It helps an owner know who he or she is reaching with marketing, service offerings, and sales strategies. And it allows the owner to make more strategic investments and bold moves that make an operation stand out.

How can you get that information?

Agugliaro says that a simple, wellplanned survey is a great start.

“Asking people good questions is cheap. And you don’t need to hire an expensive agency to figure it out,” he says. “You just need to have somebody with a good personality to ask customers when the experience is over: ‘Hey, can I just get five minutes of your time?’”

Over the course of a month, if you knew that four out of five customers would rather wait in their vehicles than in a waiting room, would you tailor your business to match that preference?

The difference can be impactful.

The smaller operation has a leg up in these matters. A large network might have layers of company leadership to

28

Team Effort Single shop owners are able to take a more hands-on approach to dayto-day operations.

communicate through before making a change, particularly in multiple shops.

“A big boat, it takes a long time to turn it. It takes a lot of decisions to turn,” Agugiaro says.

The smaller operator is nimble to try (and sometimes abandon) new ideas or strategies.

Ads for All

Much like the different approaches among different markets, there’s no one strategy that fits for advertising and marketing your shop. In fact, the rule of thumb is that all-of-the-above advertising is what the focus should be, according to Newell and Malek.

Paid advertising should help to foster the holy grail: Getting customers to talk about your brand.

“We tried all different kinds of advertising,” says Sheila Newell, who does much of the operations work for the shop. “Newspaper, radio. We still sponsor some softball leagues, but what we found works the best is word-of-mouth.”

Take advantage of a popular radio station or social media group in your area for focus, but customers tend to be all over the place with advertising consumption. Therefore, your marketing needs to be that way, too.

That overhead cost can pile up, so it’s important to set a budget. But realize the importance of getting your name out there, especially in competitive markets.

“We spend probably $60,000 to $70,000 (annually) just on advertising,” Malek says.

That strategy might mean heavy in radio for six months and then heavier in a print medium after that. Malek says that the mix can vary.

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Perspective:

Small Operations by the Numbers (Owners with one or two locations)

Car Count Small Ops

36

Ticket Average The one medium that everyone’s on and checking is the internet. The upshot is that it costs little to nothing to get your name out on those platforms.

Sometimes it takes a little additional comment from your courtesy techs. Look up Malek’s shop on Google, and you’ll find more than 600 reviews and a total rating around 4.9. That’s something that Malek’s techs pitch to customers after a great service experience. If the service was good, would the customer mind leaving a review on Google?

“Letting the customer know to put it out there that you went out of here happy,” Malek says.

The majority of customers, especially younger drivers, are checking out customer reviews before committing their patronage to a business. Customer reviews make a real difference.

The bottom line? Be comprehensive, be active, and respond to your customers’ interests.

Small Ops

$80 Manager Tenure Small Ops

years

Source: 2021 NOLN Operator Survey OCTOBER 2021

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S M A L L F O O T P R I N T , H U G E I M PA C T

Social Media Use by Platform Facebook

Google My Business

Instagram

None Twitter LinkedIn Snapchat Source: 2021 NOLN Operator Survey 30

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Pinterest & TikTok

Team Strength

Small shops have tight-knit staff teams.

This can be a great asset as smaller operators are able to build relationships with each tech and promote a sense of purpose and shared responsibility.

To hold team members to account and to carry out the operator’s mission, the manager position is crucial. A great manager is the key to success at the single-shop level.

At Newell’s Grease Monkey shop, that person is Dustin Carr.

“I’ve got customers, seriously, who will pull up and ask for Dustin,” Newell says.

“If he’s off, they say, ‘Oh, I’ll come back tomorrow.’ He has just established such a bond with an enormous group of our customer base that if he’s on vacation or off for a day, they notice.”

Carr came from that Mooresville store that Newell had worked at. Newell recognized his potential right away. As a manager, Carr has shown his commitment by completing professional training sessions regularly. As a salesperson, Newell says that Carr is second-to-none.

“He’s probably one of the top five managers in the country, if not the best,” Newell says.

That’s one of the biggest reasons that Newell’s shop has improved from about 13 cars daily when he took over to around 40 today.

At Malek’s Mr. Oil Xpress Lube, that person is Vernon Ohler.

“Vernon came in as a hood tech and he has done just an amazing job with the employees and with the customers,” Malek says. “I could go home and sleep like a baby knowing that the business is working extremely well.”

The manager is the glue that holds together a staff of techs and the owner’s vision for shop culture, but it’s just as important to recognize excellence throughout your ranks. Smaller shops can be especially adept in this department.

Agugliaro says that owners must create a holistic environment to maximize retention, whether that’s for the store manager or the entry-level tech. It’s not

9/21/21 1:36 PM

The Quick Lube Workforce Starting Wage for Techs

$11.78

Average Wage for Techs

Look and Feel John Malek rebranded his shop after acquiring it. He says that a premium look and feel is essential to customer acquisition.

enough to just have good pay. There should be opportunities for growth, both financially and personally.

“My culture, I invested in not just making them great employees or a team, I invested in giving them skills that made their careers great and their lives great,” he says.

It’s just good business. These are the people whose work makes or breaks the customer experience.

Employees need to care about their role and their success in the bay. It’s up to the owner to promote that importance. Newell does just that, emphasizing the role his employees play in keeping the company going.

“We recognize that we are who we are because of them,” Newell says. “And if

you take care of your people, your people will take care of your customers.”

Identifying and praising good work among techs is a great place to start.

Don’t discount the power of perks, either. Newell says that he often sponsors lunches and dinners for his crew, as well as outings and bonuses for revenue boosts and during the holidays.

All of those perks are deposits in the bank of employee care.

Of course, the fundamental offering of a competitive wage is important for hiring talent. Newell has seven employees on staff for his two-bay shop. He says that he sees turnover just like most shops—the data show that small shops only have slightly longer tech tenure than the overall industry average.

What Newell does offer are competitive wages, paid holidays, and bonuses.

And his employees know that there’s a system in place for wage growth. That’s a great avenue for retention. Newell says that one of his techs recently turned down another job that offered $2 more per hour.

“And he said ‘no’ because he still has room to grow financially with us,” he says.

$13.90 Manager Salary

$56,057 Manager Tenure

9.75 years Tech Tenure

3.9 years Ave. Weekly Tech Hours

41.37

Source: 2021 NOLN Operator Survey OCTOBER 2021

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Agugliaro’s Nine Pillars

CEO Warrior co-founder Mike Agugliaro has developed a system of nine pillars that can lead an owner toward successful decision making. When faced with an issue in your operation, identify which pillar relates as the weakest link and focus on strengthening that part of the foundation.

Mindset Skillset Action

Clarity

Alignment

Accountability Coaching

Managing

Training 32

Create a Culture Dan Newell worked hard to create an approachable atmosphere at his shop to grow his customer base.

Be the Exception

If you followed the earlier advice and studied your market, you likely also know how competitive the industry is for small operators. Lube shops are battling increased competition as customers are going longer between oil changes.

Because there are so many options out there, customers can begin to see lube shops as a monolith. It’s important for small shops to find that factor that turns a drive-by customer into a repeat customer.

“You win with people,” Newell says.

“You need people to come into the store to buy the product. And if you don’t have the right mindset, it’s not going to work.”

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Agugliaro sees the COVID-19 pandemic as a bit of a turning point for customer preferences. Prior to the pandemic, he says there was a stronger sense of social disconnect in commerce, like in the way that people flock to the self-checkout aisle at the grocery store. It was quick and non-experiential.

After going through the pandemic, a time in which people were forced into disconnection, Agugliaro says that customers have emerged with a different view. They want to have connections more than ever. They want to be noticed and taken care of beyond the basic business transaction.

“We’re in a day now, where people are starving for connection and starving for experience,” he says.

Of all the business strategies out there, Agugliaro says that there’s one that should get the most critical thinking: How do you make your customer experience different?

That means that the key difference that will make or break a small shop operation isn’t found in a flashy sign or an inflatable tube man in the front lot.

It’s from the premium experience and attention that comes from the single store level—the single customer level.

“It’s just all about the customer,” Malek says. “And I drive that into our employees. I tell them it’s all about the customers. It’s not about the products that we handle, it’s not about you or anybody else. It’s about the customers.”

And it’s incredible how customers will respond to that individual attention.

Malek says that his shop leaves out two tip jars, which might collect $40 in a day.

Around the holidays, people might drop a $50 bill in one of those jars for the staff.

Customers have brought them cake, sandwiches, and other gifts that reflect how much of a relationship they’ve built up over time.

There’s another aspect of shop culture that can make a real difference

with customers, and it’s harder to define. It’s the enjoyment factor. It’s the atmosphere that’s created when staff and managers have positive mindsets.

Customers pick up on that.

Agugliaro tells the story of an old farmer cutting crops by hand in the sweltering heat for 14 hours per day.

You might assume that the farmer is frustrated with such hard work over long hours, but he isn’t. He shifted his mindset, viewing each cut as part of his swordsmanship training.

“He had a different framework.

Every cut he was doing was training. He was practicing his sword cut,” Agugliaro says. “He got up in the morning and was excited because he had 14 hours to train.”

In different markets with different operations, that’s a quality that Newell and Malek share. Their positive attitudes carry them in leadership and make real impacts.

In a single-store operation, that’s a factor that starts with the owner and ripples down through the shop staff, into the sales process, and on to the customer experience. That factor isn’t derived from heavy advertising or built into the service menu. It comes from culture and leadership.

“You can’t imagine how many people have said they’re comfortable sending their 16-year-old here because we won’t bully them into selling something they don’t need,” Newell says.

Malek, who has a few different business interests, chooses to spend his time working in an office next to his shop.

“It’s a lot of fun,” Malek says. “I enjoy being here six days per week.

And we just love it, because everybody loves us.”

This story uses data from the 2021 NOLN Operator Survey. Special thanks to Valvoline for sponsoring this year’s survey.

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Autel’s TPMS Solution How the company makes servicing this vital vehicle safety system more efficient and lucrative It's no coincidence that Autel has become the world's leading supplier of aftermarket Tire Pressure Monitoring System (TPMS) sensors in the last several years. Autel credits its success to a comprehensive approach to the industry by becoming the only company producing TPMS tools and sensors.

With the repair process in mind, Autel designs, engineers and manufactures all its TPMS products. This comprehensive approach gives the company total control over the tools and sensors' continuity, quality control, and functionality.

Autel's universal programmable 1-Sensor has truly dominated the aftermarket TPMS industry. Autel considered the repair process and developed its sensors with technology that would make TPMS more efficient. Autel developed a dual-frequency universally programmable sensor with a press-and-release valve stem needing no tool for installation. The 1-Sensor can emulate 315 MHz and 433 MHz frequencies (314.95, 433.95, and 434 MHZ are also supported) and can be programmed to replace 99 percent of the TPMS sensors on today's vehicles. So that's onepart number to service nearly every TPMS-equipped vehicle that enters the bay. Batch programming is a feature Autel pioneered and is not offered elsewhere in the industry. Current Autel TPMS tools can program up to 20 sensors at once, with each sensor having its unique ID. Fleet managers love this feature as they can pre-program in batches and always have them ready on the shelf.

Autel's latest tool, the MaxiTPMS ITS600 underlines Autel's commitment to its customers with tools that off er expanding capabilities and increasing value. A sleek, lightweight touchscreen Android tablet, the ITS600 performs every aspect of TPMS service, including activation of all-known sensors, system diagnostics, 1-Sensor programming providing 99 percent vehicle coverage, and displays vehiclespecifi c position Relearn instructions.

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tablet's Tire Identifi cation Number (TIN) scan function enables a real-time safety check for the customer's current vehicle tires.

And the DOT tire registration feature (available with a separate CIMs tire registration subscription) and a method to ensure your shop complies with government regulations when selling new tires. The TIN is the string of six to 13 numbers or letters marked on the tire sidewall following the letters DOT (Department of Transportation) identifying, among other things, the tire's manufacture date (week and year). After scanning the TIN, the ITS600 will display a replacement recommendation if applicable.

TIN registration is another matter and one whose responsibility has shifted over the years between seller and consumer. The FAST Act of 2015 made it mandatory that the tire seller register just-purchased tires on behalf of the customers.

The goal, of course, is to alert customers of a tire recall and get those tires off the road. Eighty-fi ve percent of recalled tires are believed to be still out there. The ITS600 brings the capturing and registering of the TIN into the modern age, eliminating the hassle of mailing in postcards and reducing the possible transcribing errors (40 percent of registrations are invalid because the TIN was incorrectly written). The ITS600 makes compliance easy: Input the tire information and the customer's contact information, and tap submit.

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Optimizing workplace communication to improve productivity

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Dana Borowka, co-founder and CEO of Lighthouse Consulting Services, says that even though it may happen

unintentionally, letting that line of open, clear and constant interaction can lead to dysfunction in the workplace and overall lower morale.

“Clear communication is vital,” he says. “People not getting along, having communication conflicts is not healthy for an organization. If you don’t have the trust and people are fighting all the

Establishing Open Communication Above all, having an open line of clear communication between—both from coworker to coworker and from boss to employee—is the most effective way to maximize the productivity and morale of a team.

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are common, or even if an employee is just having a rough and unproductive day, first try to understand why.

Use empathy, see where people are coming from. There’s usually a reason why someone starts up with someone else. They usually don’t just do it for the heck of it. Try to get to know your people the best you can, and keep communication open.

Getting to know your employees as people and as team members makes them feel more valued, which in turn will help them feel more comfortable being upfront about potential problems that might arise in the workplace.

Building a Better Team Just as important as making sure your current employees are working toward building a more team-focused environment is hiring new people who will also buy into that mantra.

Technical skills are easy to find out.

It’s the non-verbal skills, the soft skills, that are so important. Understanding how your team members work—both individually and as a unit—can help inform who might fit well and who might have a tougher time connecting during the onboarding process.

Employers can, and should, lean on their employees throughout the hiring process. They can provide invaluable insight to team dynamics and what they want to get out of a future coworker.

They don’t need to be actively involved throughout the entire process, but genuinely asking for and considering feedback from employees about workplace dynamics and what they are hopeful for can be a fairly simple yet very effective first step.

Ask current and past employees, “What are a couple characteristics of the ideal person you work with? What are some of the ones you’d prefer not to?” Some of those answers can be very revealing.

Overall, open communication and honestly seeking feedback on places to improve from your employees and coworkers is the most effective way to

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F I A N C E + O P E R AT I O N S

GETTING DOWN TO (LEAVE THE) BUSINESS What to consider when thinking about selling your shop

BY NOAH BROWN

SELLING YOUR BUSINESS, REGARDLESS

of the industry, is always a daunting proposition. Selling a family business can be even more difficult.

In addition to sorting out logistics, parting ways with an institution you or a close family member helped to build from the ground up, leaving team members who have been with you for years and sometimes decades, adds even more weight. But sometimes it’s the only move that makes sense.

Joe Benza, a former quick lube operator in North Carolina, and Michael Meuret, a former operator in Idaho, had similar paths that led to the sale of their businesses. Both started in quick lube in the ‘90s working for their dads.

Both were ambitious, and by the end of the 2000s, they were managing several stores in their own chains.

And it was around the same time that both decided to sell.

For Benza, who managed six Fast Lube Plus locations with his dad, selling wasn’t really on his mind when FullSpeed Automotive first approached him with an offer in 2018.

“We were not for sale, but dad was getting near retirement and we were planning for succession. The offer that was presented to us was a good one and it was one of those ones you don’t say ‘no’ to,” he says.

Meuret, whose Einstein’s Oilery chain had reached 12 locations by 2019,

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had been contemplating retirement.

Pressed by the pandemic and other personal circumstances around the start of 2020, plus an offer from Valvoline Instant Oil Change, he knew it was the right time.

“Good can be good enough,” Meuret says. “We ultimately asked ‘How much more do we need? How much more do we want?’ Our families are the priority.”

Though both had different circumstances leading up to their respective deals, both reached the same conclusion: It was time to sell.

Initial Negotiations Larger companies looking to acquire your business don’t have a onesize-fits-all approach to starting negotiations. Regardless of the circumstances, though, once the decision is made to sell your business, it’s imperative to have every record in your shop organized and easy to access, down to the last penny.

The duration of an acquisition can vary significantly, but three to six months is a fairly normal length of time.

During the initial negotiations, buyers will want to do their due diligence and come up with an estimated value of your business. Benza says it’s common for sale prices to be based on your business’ EBITDA, which is a metric that measures a company’s cash flow based on earnings before

interest, taxes, depreciation and amortization, though that’s not the only metric used.

In that time, the buyer will usually submit an intent-to-purchase document. That doesn’t lock the buyer or seller into the deal, but Benza says it gets the ball rolling.

Once that’s done, the buyer and seller will submit an asset sale agreement.

“You should have an attorney, a very experienced business acquisitions attorney, reviewing those documents.

There’s a lot of conditions on a sale and a lot of liability that carries after a sale that you have to be aware of, and you need an attorney to vet those documents,” Meuret says.

Employees News of a business possibly being sold can affect how employees and customers handle day-to-day operations.

Even though the owner is looking to move on to a different opportunity, employees and customers are still reliant on that business. If word gets out before a sale is finalized, it can be a detriment to both employee morale and overall sales.

For Benza, who wasn’t actively trying to sell his business before FullSpeed came with the offer and maybe would have kept the business if the sale fell through, word that the owners were looking to get out could have had a negative impact.

Meuret says it was a tough balance pushing forward through the sale while also making sure that his employees were treated fairly and didn’t feel like “the rug was being pulled out from under them.”

“Our people were the biggest part of our success, and it was extremely important to us that they were treated well in the transition,” he says. “You

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can’t control everything, but you want to make sure that your people ... are given a fair chance. Hopefully the business that is buying you shares your values.”

During the initial negotiations, signing a non-disclosure agreement is common. That meant, however, Benza’s team didn’t find out until the sale was finalized.

Meuret says that’s common, though, as buyers will usually want to control the flow of news during a sale.

“During the due diligence process, there is no commitment to buy,” he says. “The earlier your employees, your staffing or even your customers are being told that you’re selling your business, the more likely that it will cause a disruption in your business.”

Finalizing the Deal Once the sale is finalized, the buyer will start the transition process. Since Benza was joining FullSpeed Automotive’s corporate team, he says they were very open and transparent about

how the transition would work and what was expected.

For Meuret, who wasn’t joining Valvoline, there wasn’t as much communication with corporate. They helped make sure everything stayed confidential “as to not raise any red flags,” but aside from that left Meuret to take care of his business and them to take care of theirs.

“Valvoline, like any buyer, was looking to protect their position,” Meuret says. “That’s just the matter of perception. They’ve got attorneys and teams that gather documents, but at the end of the day, the burden is on you to review their documents.”

A buyer will usually handle updating machines, rebranding, on-boarding if they’re keeping employees around and any other necessary tasks, but both Benza and Meuret say having your team ready for the sale and having one or two key members helping with the transition to new ownership in place will help ensure a smoother transition.

A Done Deal Though Benza’s and Meuret’s paths diverged after the sales—Benza is now working with FSA Corporate while Meuret is enjoying retirement—both say it was the right decision.

“You take the good with the bad, and you learn as you go,” Benza says.

“These sales are always complicated.

There’s emotions involved, a lot of moving parts. It’s not easy, but if I had to go back, I’d do it again because it was the best thing for our family at the time.”

Meuret says making sure your team is taken care of should be the No. 1 priority. After that, learning to roll with the changes and not get overwhelmed is the best thing to do.

“Don’t get stuck in the weeds when you’re selling. There’s a lot of details, a lot of information, a lot of legal jargon that can be very intimidating,” Meuret says. “Let the attorneys go to work. Be willing to be flexible and expect that from the other side.

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C A S E S T U DY

FOR PROMOTIONAL USE

Successfully executing a noteworthy promotional campaign

BY NOAH BROWN

WHEN COVID-19 WAS DECLARED A

global pandemic back in March 2020, every industry was adversely affected to some extent. As the months continued, many businesses struggled to stay afloat as mandatory lockdowns across the country forced both employees and customers to stay home.

Even once those lockdowns were lifted, quick lube shops still felt the sting of the virus and had to figure out how to keep customers coming through.

Jonnie Hendrickson, president of Winnipeg-based Super Auto Centres, says her six stores were no exception.

So, how did the chain implement a

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promotion that got people back in to service their vehicles following a global pandemic?

The Challenge All six of Super Auto Centres’ locations closed down near the end of April 2020 in order to make some changes to better protect against COVID-19. Once they reopened, though, fewer drivers were needing service on their vehicles due to a large increase in the number of people working from home.

The challenge facing Hendrickson and her stores at that time—and the one they still face now—was figuring out how to develop a promotion that

both boosted business and followed the company’s mission of leaving a positive impact on the surrounding community.

The Solutions After a month of being closed down, Hendrickson says Super Auto Centres management knew they had to reopen their stores to keep their employees going through the pandemic.

With fewer people on the roads, though, the company needed a way to keep those employees productive.

“We knew we needed to do something big when we came back,” Hendrickson says. “We knew the only people driving around at this time— everyone else was home—were our health care workers.”

Do what you know.

That something big eventually turned into offering free oil, lube, and filter services, as well as tire rotations, to any frontline health care workers.

SUPER AUTO CENTRES

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Not only would that promotion keep employees at all five locations that offered quick lube and oil services busy each day, but the company said in a statement it would also provide tangible, practical assistance to those “working tirelessly to ease suffering” and who “have heroically taken care of us” without forcing the locations to radically change their services.

Get everyone on board.

When Super Auto Centres first decided to run the promotion, Hendrickson says management checked with their staff to make sure they would be up for the promotion.

“All of our employees got on board with the idea, and we were going to need all of them to do this,” she says. “Some of them had parents, siblings, relatives in the healthcare field, so it was very personal for them too.”

The five locations first ran the promotion in May 2020 for one week. In that

time, between the five stores, Hendrickson says her employees gave 4,018 free oil changes—about 140 per shop per day.

“There was no way we could have ever anticipated the amount of oil changes we would be doing,” she says.

The promotion was such a success that the company ran the same promotion again in April 2021. This time, they received an even bigger response—the five stores gave more than 5,000 free oil changes in the span of a week.

The Aftermath Hendrickson says the event was made possible through the dedication of her employees and “generous pricing” from oil suppliers. She says the company saw a large, positive impact during and immediately after that week-long promotion.

“It was insane for that week, but immediately afterward we thought we were going to slow down quite a bit.

We didn’t,” Hendrickson says. “We had people coming in who had never come

to us before. They were all people who had heard about the promotion and just wanted to show some gratitude for what we were doing.”

The Takeaway The pandemic provided unique challenges and opportunities for shops to get customers in the door. For Super Auto Centres, the best path forward—both in the short and long terms—was to find a solution that not only benefited its business and employees, but also the community it serves.

“Gifts generate connection and possibilities. Some of the most important gifts we can give to those around us are time, effort, and care,” Super Auto Centres CEO Jim Brousseau said in a statement. “Our Healthcare Heroes have shown us this over the past year. They have taken care of us, and in return, we would like to thank them by taking care of their cars.”

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LEADERSHIP

FINDING A DIAMOND IN THE ROUGH

Finding employees is tough. Finding good ones is even tougher.

BY NOAH BROWN

The bottom line is simple: It’s hard to find employees and even harder to find good ones.

That reinforces how important it is to get it right the first time when going through the hiring process.

Now that many federal and state unemployment benefits programs put in place during the COVID-19

THE UNEMPLOYMENT RATE HIT AN

astronomical 14.8 percent across the country in 2020. Even now, in the waning months of the outbreak as the economy slowly gets back on track and employment starts returning to average, employers are struggling to find and retain dedicated workers.

pandemic are expiring, though, many economists are projecting more people will soon start looking for jobs, but how potential employees approach those jobs has drastically changed since the pandemic started.

Team-Oriented, Customer-Focused David Haney, owner of Oil and Lube Express in Magnolia, Ark., says that first and foremost, people need to understand what kind of work they’re getting themselves into when they apply at his shop.

“You’re dealing with customers, regardless of what industry you’re in… that’s just the bottom line,” Haney says.

“If you take care of your customer, they will take care of you.”

Haney worked as a store manager for Walmart and then moved to a pharmacy in Missouri before making

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the jump to the quick lube industry 13 years ago. Though the services provided by all three are vastly different, he says good customer service and great work ethic should be expected regardless of the industry.

“When I’m looking for a hood tech or a pit tech, they don’t have to know the first thing about a car. I’d rather they have the character and the good customer service, the friendly and talkative personality that has a good attitude toward work and people,” he says. “It’s easy to teach tasks.

It’s hard to teach personality.”

In addition to finding someone who works well with customers, Haney says he tries to find people who will work well with his existing team.

During his time with Walmart, he picked up a hiring committee technique in which he’ll have several of his employees talk to a potential new

hire to get a feel for how they might interact with the team.

“The last thing you need is somebody who is causing issues and trouble,” he says. “That can be more disrupting than anything.”

Craig Stout, a former U.S. Marines recruiter for nearly 20 years now working for dealership recruiting agency AutoPeople, agrees that the ability to cooperate well with the team in the shop is crucial.

“The people that were part of organized sports teams or organized clubs means they’re good with working with other people. That’s a quality most businesses, not just specifically this one, (look for),” Stout says. “Having that experience definitely sets you apart.”

And with turnover rate as high as it is in the quick oil and lube industry, matched with the grueling work that can

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be involved, Haney says sometimes people with less-than-stellar backgrounds are perfect for the job, so long as they’re willing to make amends and put in the work—two people with convictions currently work in Haney’s shop.

“People make mistakes. I don’t hold a grudge, and if they’ve served their time, they’ve done what they need to do,” Haney says. “They’re both young guys and they just screwed up. They wanted to get away from that and get out of that.”

Still, both Haney and Stout admit it’s a mixed bag when going through the interview process.

“You never know about people sometimes. Sometimes the people you think are the most dependable actually aren’t, and the guys you think aren’t actually are. Some people surprise you.”

In most instances, potential employees will do what they can to put

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LEADERSHIP

their best foot forward through the initial hiring and onboarding process.

Once they start to get comfortable with their new environment, though, their true work ethic and behavioral patterns start to show.

“You never know until you hire somebody. It’s hard in an interview process to sit down with someone and know, ‘OK, this guy’s going to be a keeper,’” Haney says. “The first impression is always the best indication...but you never know what you’re going to get until you actually hire them and get them in the mix.”

Internal Development Stout says there’s another option to try and avoid the headaches of hiring: Don’t do it.

Instead, he suggests focusing on your current team and finding ways to incentivize them to stay.

“What I hear a lot from technicians is that they want to be appreciated, they want to feel valued. If somebody’s constantly getting beat up on … instead of hearing, ‘Hey, you’re doing a good job, we appreciate you,’ it doesn’t make for a great working

46

environment,” Stout says. “I hope the industry catches up in taking care of these guys.”

Both Stout and Haney say high turnover, especially at the hood and pit tech positions, and constantly trying to fill open positions are expected obstacles in the industry.

“In the quick lube industry, you’re getting people who are young and are trying to decide what they’re going to do, if they want to go to college or not, or what direction they want to go,” Haney says. “It’s not a career job.”

Given the nature of the job, both Stout and Haney say it is hard to keep people around if a better opportunity comes around. Even still, investing even a little bit in current employees can help keep them around for longer than they otherwise would.

“I always try to pay my employees a little bit better than what most people pay so that I can reward them for the job they’re doing and I’m not worrying about having to replace them,” Haney says.

Streamlining the Process In order to keep things running smoothly, sometimes going through a

third-party hiring agency can provide some much-needed assistance.

Haney’s business uses a temp agency that takes candidates through the initial onboarding process and handles the responsibilities that an HR department normally would.

Haney says he still does his own interviewing in order to make the best determination about a future employee, but once they’re hired they go through that third-party contractor.

“It streamlines the process and saves me money in the long run,” he says.

In addition to streamlining the actual hiring process, Haney adds that streamlining the entire operation of a shop is critical with the hiring shortage as bad as it is. Until it turns around, finding and keeping good employees will be a tough task.

“Get by with as few people as you possibly can,” Haney says. “Do some due diligence on the front end … but you’re never going to know. It’s like buying a used car. It might look good on the surface, but is there a problem with the transmission? Is there an issue with the engine? Sometimes you get a jewel, and sometimes you get a headache.”

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QUICK: AN EVENT HELPING QUICK MAINTENANCE BUSINESSES GROW AND SUCCEED SINCE DAY 1 JOIN OUR WAITLIST FOR YOUR CHANCE TO ATTEND! NOLNQUICK.COM

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OCTOBER 2021

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SMALL ADDITION. BIG IMPACT. Phillips 66® Shield® and Kendall® GT-1® High Mileage Boosters give your business a high mileage oil option without the need to buy additional oil. This helps you improve margins, save space, and have better control of inventory. The booster, when used as directed with Phillips 66 Shield and Kendall GT-1 motor oils, results in a blend that meets current API and ILSAC performance standards.

Learn more at phillips66lubricants.com/HMB-sales-kit or kendallmotoroil.com/HMB-sales-kit

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AO CA C O R N E R

c

Government Affairs in Fall 2021

Get updated on the AOCA’s work supporting the industry STAY PROACTIVE AND HELP COMBAT OIL POLLUTION.

KRISTY

BABB

Is the executive director of the Automotive Oil Change Association (AOCA).

INFO

COURTESY KRISTY BABB, GETTY

@AOCA.COM O R 8 0 0 . 2 30 . 0 7 0 2

AOCA encourages service station members to make sure they are qualified for the Service Station Dealer Exemption. In 1986, Congress added the Service Station Dealer Exemption to the Comprehensive Environmental Response Compensation and Liability Act (CERCLA or Superfund).

Without the Exemption, automotive service facilities that changed engine oil for customers could be held liable for any used oil pollution that occurred offsite due to transporter or recycler accidents/negligence. The trade-off has largely been a win-win.

Since 2016, the Federal EPA Region IV and the Mississippi Department of Environmental Quality have been working together to remove an abandoned JCC Environmental Site in Picayune, Miss., a former used oil and waste recycling facility that filed bankruptcy in 2013. As of August 2021, the EPA has settled with 84 “generators,” and 30 automotive service facilities that changed engine oil for consumers. The highest cost allocation to any generator so far is $24,100.

When “service station dealers” (e.g., fast lubes, auto repair, automobile dealers, tire dealers, etc.) meet the following Exemption conditions, they are relieved from responsibility for costly cleanups and liabilities associated with offsite handling of used oil.

Comply with all applicable used oil management standards, which includes complying with the federal Spill Prevention Control and Countermeasure

regulation. Do not mix used oil with any hazardous substance, and accept used oil from DIYers and send it for recycling.

Remember that there is no minimum amount of DIYer used oil that must be accepted. However, EPA’s Exemption Application requires applicants to describe any methods used to notify the public that the facility accepts(ed) or was willing to take DIY used oil (e.g., sign at premises, newspaper, pamphlets) and, if available, to provide a copy or picture.

AOCA has a DIYer used oil acceptance notice poster, and DIYer used oil collection log available for members at www.aoca.org.

On August 13th, 2021, OSHA updated its COVID guide on Mitigating and Preventing the Spread in the Workplace to reflect the CDC’s July 2021 mask mandate and testing recommendations to protect vaccinated and unvaccinated workers.

Save the Date iFLEX will be here in November! At this year’s convention, attendees will be able to learn from top industry professionals while networking with other operators and vendors. You’ll be exposed to training and education that will advance your business as well as your confidence, but it doesn’t stop there.

Come join AOCA at the Rockhouse in Las Vegas, Nev., on November 14 to kick off iFLEX! From 6 p.m. to 9 p.m., you can connect with our industry professionals and enjoy the ambiance of the Hard Rock Café.

Register today at wcwa.org/events.

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STAY PROTECTED WITH API API standards and programs provide benefits and protections to shop owners and operators

BY JEFFREY HARMENING, AMERICAN PETROLEUM INSTITUTE, MANAGER – EOLCS/DEF/MOM

The American Petroleum Institute (API) works across the auto industry to develop motor oil standards that meet changing lubrication demands as engine technology advances. We have been licensing engine oils for almost four decades through the Engine Oil Licensing and Certification System (EOLCS). However, there is more to EOLCS than developing and licensing engine oils. There are a number of other programs that benefit oil change and quick automotive maintenance shop owners and operators by providing protection and monitoring programs.

ENGINE OIL LICENSING AND CERTIFICATION SYSTEM The most recognizable program from EOLCS is the voluntary licensing and certification program that authorizes engine oil marketers that meet specified requirements to use the API Engine Oil Quality Marks. There is a robust global network of 870 licensed engine oil marketers in more than 60 countries who are currently licensed to display the API Quality Marks on over 23,000 products in the marketplace. API 1509 - Engine Oil Licensing and Certification System has recently been updated and contains the latest standards and marketing guidelines for API Engine Oil Quality Marks. It governs how engine oil marketers certify that gasoline and diesel engine oils meet API’s stringent performance standards.

will work with the licensee to evaluate the nonconformity and take appropriate corrective action. Unresolved nonconformance issues are subject to additional enforcement actions. Actions may include termination of the license to display the API Marks and removal of noncomplying product from the marketplace.

COUNTERFEIT OILS We also investigate oils that are falsely claiming to be certified by API. Unscrupulous manufacturers producing low quality oils may add API marks to confuse distributors, shops, retailers and consumers. API hosts an Unauthorized Oil listing of oils which are not licensed by API and displays product labels. This listing is continuously “The standards updated as API works with infringing companies to remove and programs their unauthorized products from the marketplace and alter established by API their marketing materials accordingly. are continuously API may also investigate oils at change locations and notify the marketer identified on the oil change receipt of these test evaluated and results if the test results indicate that the oil on the receipt updated as does not match the formulation licensed by API.

needed...”

MOTOR OIL MATTERS Motor Oil Matters (MOM), API’s program for licensing oil American Petroleum change locations, provides benefits for installers and Institute, Manager – their customers. MOM-licensed oil-change locations and EOLCS/DEF/MOM distributors certify that they meet the requirements set forth AFTERMARKET AUDIT PROGRAM in API 1525A, which governs bulk oil chain-of-custody and The API Aftermarket Audit Program (AMAP) supports the licensing quality documentation. Licensed locations commit to dispensing oils meeting and certification program by overseeing the sampling of API-licensed oils in the marketplace and tests them to verify compliance with engine oil specifications.

API performance standards and permit API to sample their bulk oils as part of This ensures that oil marketers, distributors, installers and consumers can have the aftermarket audit program, ensuring they are pouring the oil as stated to confidence in the quality of API-licensed motor oils in the marketplace. their customers. Licensed installers and distributors also meet the regulations for chain-of-custody enshrined in NIST Handbook 130 Uniform Laws and API-licensed engine oils are purchased in packages and from bulk tanks Regulations in the Areas of Legal Metrology and Fuel Quality, as adopted by in the marketplace and tested to determine their physical, chemical, and the National Conference on Weights and Measures annually. MOM provides performance properties. The results are compared to the formulations submitted by the licensed oil marketer to API. Conforming oils will show test protection and assurance for you and strengthens your reputation with results that are consistent with the formulations on file with API and meet the your customers. Information about all the benefits of MOM can be found at MotorOilMatters.org.

API specifications claimed as well as all EOLCS program requirements.

The standards and programs established by API are continuously evaluated To confirm the oil quality, all oil samples undergo elemental analysis and updated as needed with input from OEMs, oil marketers, distributors, and testing for required properties, which include viscosity at 100°C, highshop owners and other stakeholders in the industry. This helps assure shop temperature/high-shear testing, cold cranking, pumpability and volatility. At regular intervals, the oils may also be tested for foaming properties, shear operators that they are getting high-quality oil that will meet the needs of their stability and oxidation, among others. In addition, product packages are customers’ engines. inspected to make sure they correctly display the API Marks, comply with If you have questions or need additional information, contact the API Engine Oil licensing requirements, and carry product traceability codes.

Licensing and Certification System at eolcs@api.org.

If a licensed oil does not match the physical and chemical data on file, API 50

— Jeffrey Harmening,

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HOW DO YOU COMPETE WITH BRAND-NAME CHAINS? Strong customer service will help keep your business competitive for the long term

BY KIM TULLY-SUTTON, LEAD MARKETING SPECIALIST AT CHEVRON LUBRICANTS, AND GRAHAM RUSSELL, AUTOMOTIVE INSTALLED BUSINESS CONSULTANT AT CHEVRON LUBRICANTS

responding to reviews—either positive or negative—personally and quickly as a larger chain operation is less likely to respond online hardworking employees and loyal customers. You’ve contemplated to a dissatisfied customer. Finally, there is the real possibility that expanding and acquiring or opening another fast lube facility. the negative performance of a local franchisee can affect other You find out one of your competitors a few blocks away has sold to franchisees in the area that are under the same brand name—so just a chain operation. A big (franchise) player comes into your territory by brand association there could be unintended consequences. with name recognition, backed by radio ads. Suddenly the local As an independent owner/operator, you also have more flexibility competitive landscape has changed. in hiring and setting workplace policies. Many owners This scenario has become more common as the tell us they think of their employees as family and automotive installed business continues to go through treat them accordingly. That means being free to give “When employees consolidation and investor pressure on private equity them time off when they need to attend to personal feel they are owned franchise chains requires them to increase site business, knowing they will return the favor by being treated well, counts. How does the independent owner/operator extra diligent on the job. Furthermore, you decide that translates stay competitive and grow in this environment? how much to pay your employees based on their value Independent owner/operators have numerous to the business, not according to a corporate formula. into loyalty and advantages over the franchisee including flexibility All of this makes a difference because employees better customer compared to the constraints and restrictions imposed represent your business to your customers. When service—a win, win with some business models. Often the franchise offers employees feel they are treated well, that translates for everyone.” a brand and required operating model and advertising into loyalty and better customer service—a win, win control in exchange for a percent of gross revenue for everyone.

—Kim Tully-Sutton, Lead and possibly a royalty. The franchisee also typically As Tom Thornton, who runs a Havoline xpress Marketing Specialist at pays into a marketing pool of funds for advertising, lube® in Vancouver, Wash., explains, “Customers love Chevron Lubricants where the franchisor controls how the funds are local, family-owned businesses. In this day and age, spent. The benefit of a franchise model is that if you that’s a leg up on the competition.” Thornton goes on don’t have direct, hands-on experience operating a fast lube, the to say, “The people who come in for an oil change know us and trust franchisor provides required processes and procedures for running us. That always helps, especially in these times with COVID.” the business.

The importance of trust can never be overstated when it comes to In contrast, independent owner/operators are constantly making vehicle maintenance, as trust is one of the most important reasons why decisions that they know are best for their business and their customers return to your shop again and again. customers, such as being involved and visible in the community As an independent owner/operator, pairing strong customer service, through various organizations. As an independent owner, if you want experience with personalized knowledge of your local community and to support a local charity, or advertise in the high school football off-site local advertising will help keep your business competitive for team’s program, you don’t need to seek permission or funding to do the long term. that because you have control over your local advertising and your Kim Tully-Sutton has been with Chevron for more than 12 years and is social media presence. currently the lead marketing specialist. You can reach her at Kimberly.

Rarely does a franchise chain store have its own website—more Sutton@chevron.com. typically, it appears in a zip code search on the corporate site.

Graham Russell oversees the Northwest business area for automotive Whereas independent fast lubes have the opportunity to use their installed as a business consultant. You can reach him at grahamrussell@ website and social media platforms to tailor their messages to chevron.com. their local market and customers. Plus, there is an added benefit of You’ve spent several years building a successful, independent fast lube business. You like being your own boss. You have steady,

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MARKETING TIPS TO GROW YOUR BRAND ONLINE How to create a clear message and direction with your digital strategies

BY MORGAN TEPSIC, MARKETING AT DEVON

In our industry of all things “quick”, it can be

frustrating when some of your digital marketing efforts take a bit more time than a speedy oil change.

In this month’s article, I will walk you through some market trends and specific strategies we have been doing at DEVON. Hopefully, you’ll find a helpful nugget somewhere in here!

“The more you understand your ideal customer, the easier it is to market to people with similar purchasing habits.”

The more you understand your ideal customer, the easier it is to market to people with similar purchasing habits. Many advertising clients, such as Google and Facebook use artificial intelligence to create audiences that match your current customer list. “Lookalike Audiences” effectively widen the net that you cast every time you sponsor a post using these tools.

CONSISTENCY IS KEY Whether that’s in the colors you use or the frequency IF IT AIN’T BROKE, DON’T FIX IT....UNLESS IT IS you post online, your customers will come to expect As a digital marketer, sometimes it may feel as though some familiarity within your content as your brand everything I post online is instantly gold. However, —Morgan Tepsic, grows. In the digital age, it’s important to frequently numbers never lie, and it’s essential to rely on them marketing at DEVON remind your customers of your services, as they are to decide which tactics aren’t working for your most certainly being bombarded with advertisements brand. Many marketers will depend on “A/B Testing”, multiple times a day. essentially launching a campaign with a few slight Staying consistent with your brand, message, and variations. Each variation is delivered to a select group frequency of content will all help play a role in how of people and compared against each other to see your company is perceived online. For instance, without looking at any which test was most successful in generating clicks. words on Chick-Fil-A’s Instagram, you can still recognize them with With the quick lube industry being so niche, it’s easy to get the help of their consistent colors and visual themes. These design comfortable with a specific terminology when referring to your elements have been communicated repeatedly for years, and it’s that products and services. These may not always be the exact words consistency that people have come to expect from them. Take a minute that your customers are using to try and find you. Communication is to think about your company’s strategy regarding consistency and how an excellent example of how A/B Testing can help you connect with you could improve on it. current and prospective customers.

YOU GOTTA KNOW YOUR AUDIENCE Sometimes coming up with content to post online can seem complicated, especially when you don’t have a clear picture of who you want to see it! There are tons of creative ways to gather demographic information with your current customer base. Surveys, giveaways, and other calls to action are great avenues to collect information to make critical marketing decisions.

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TO SUMMARIZE Marketing in the digital age has never been easier, thanks to platforms like Facebook and Google. However, having a clear message and direction with your digital strategies makes it easier for your business to grow online. Search your company on every outlet on the Internet to see what impression you are giving new customers. Use that as a jumping-off point to better fine-tune your company’s overall message online.

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CHOOSING THE RIGHT TRANSMISSION FLUID FOR THE JOB Keep your vehicles’ gears shifting smoothly with the right fluid Transmissions are one of the most important and complex vehicle systems.

They make a car move by receiving power from the engine, converting it into torque, and transmitting this rotational power to the wheels.

Transmission repairs are one of the most expensive, complicated repairs, so keeping transmissions in good shape and using the right fluid is critical to safe and efficient vehicle operation.

WHAT TRANSMISSION FLUIDS DO For transmissions to work properly, it can’t have any metal parts grinding. Similar to motor oil, transmission fluid acts as a lubricant between the transmission’s parts for smooth operation and keeping the transmission lubricated, clean, cool, sealed, and transferring power.

Typically, transmission fluid needs to be changed every 30k-100k miles, depending on manufacturer recommendations, or more often on cars driven in high-stress conditions (stop-and-go driving, heavy loads, or driving up and down hills).

HOW TRANSMISSIONS WORK Transmissions use a series of gear ratios to keep a vehicle’s engine spinning optimally, while providing the wheels with the right amount of power they need to start, move, and stop the car.

Since the The transmission acts like a power switchboard for the car: it increases torque to accelerate, prevents the transmission is engine from working too hard, and disconnects the one of the most engine power from the drivetrain to allow idling.

CHOOSING THE RIGHT TRANSMISSION FLUID Since the transmission is one of the most complex vehicle systems, choosing the correct fluid is critical to preventing damage and ensuring the best performance and fuel economy. Today’s transmission fluids are typically blended complex vehicle with synthetic base oils for better performance, with systems, choosing improved resistance to heat, cold, oxidation, friction, and FOUR TRANSMISSION TYPES shearing. Here are the most common transmission fluid types -Manual the correct fluid and what differentiates them: The simplest, oldest type of transmission is the manual. is critical to -GM DEXRON®/MERCON® V (Ford)/ATF+4® (Chrysler) The driver controls the gearbox using a foot-controlled preventing damage These are the most common on the market, designed and clutch to engage and disengage the engine from the and ensuring the licensed exclusively by GM, Ford, and Chrysler. They are wheels and a manual gear shifter to change gears. formulated for the newest transmission technologies in -Automatic best performance today’s cars. All three include friction modifiers, which reduce While manual transmissions are mechanically simpler, and fuel economy. the friction in lubricated parts. automatic transmissions are easier to use. Instead of -Multi-Vehicle Synthetic Transmission Fluid the driver changing gears with a clutch and gear shifter, Multi-vehicle transmission fluids are becoming more popular. automatic transmissions use a complex torque converter While not licensed by any specific auto manufacturer, they are designed for and computer-controlled gear sets, clutches, and brakes to automatically superior performance and protection. They are formulated with the latest shift gears. The complexity, number of moving parts, and computer additive technologies and typically use synthetic base oils. system needed for automatic transmissions can lead to expensive repairs, -Continuously Variable Transmission (CVT) Fluid if not well-maintained.

More manufacturers are using CVT transmissions in new cars due to their -Automated Manual exceptional fuel economy. CVT transmissions require specialized fluids Like manual transmissions, automated manuals employ a mechanical formulated with the correct frictional requirements to ensure the belt or chain clutch. However, the clutch is automated using electronic, remains in contact with the pulleys without slipping. Because of this, CVTs pneumatic, or hydraulic controls. Sometimes referred to as a “Direct require specialized CVT fluids.

Shift Gearbox” (DSG) or a “Sequential Manual Gearbox” (SMG), this transmission allows for either fully automatic forward gear shifts IN SUMMARY or manual shifts through the gear selector or through buttons or Our engineers have been working to redefine the term smooth shifting. As a paddles on the steering wheel. result, our ATF products are all specifically formulated to ensure long service life -Continuously Variable Transmission (CVT) and provide consistently smooth shifting performance. Plus, every product is CVTs are similar to automatic transmissions but operate using a different extremely shear stable, and holds excellent oxidation resistance. Use Phillips 66® mechanism. CVTs don’t have gears at all. They use a system of belts and pulleys Lubricants or Kendall® Motor Oil ATFs for maximum anti-shudder performance, for an infinite range of ratios. The car’s computer decides how to adjust the excellent low-temperature properties, and easier shifting in cold weather. pulleys to create the optimal ratio for the driving situation.

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CHARACTER COUNTS Grow your business by finding the right people with the right attitude

BY AMBER KOSSAK, CEO OF SOLID START

One of the big surprises of the pandemic this past 18 months has been the

workplace. Responsible people know what needs to be done and usually staffing issues we have all had to deal with. Filling vacancies at any level do not need supervision or guidance. You will find them to be trustworthy, can be time consuming. When filling a management role, it’s even more keeping their word and honoring their commitments. Equally important, important to get the right people in place. You certainly want people they don’t make excuses or blame others for their own failings. They learned who are capable, but equally as important is character, the subject of early on that even when the dog eats their homework, it was their own fault this month’s column. for leaving it where the dog could get it.

Some might say character is an intangible that you can’t really measure. If you break it down, however, you’ll see that character has many PUNCTUALITY observable telltale signs that reveal our inner qualities.

This is another small but mighty facet of responsibility.

Here’s a non-exhaustive list of qualities that you will It is one of the ways we show respect for others’ time by “Responsible frequently find notable in either employees or the evermanaging our own. people know what valuable, vendor partners. needs to be done INTEGRITY and usually do not ALERTNESS The dictionary defines integrity as “the quality of being Alert people are tuned in to things going on around honest or having strong moral principles.” It’s one of the need supervision them, and not simply what is going on in their own most important qualities in the workplace or the home. or guidance.” heads. People who are alert are aware of dangers and It’s the opposite of hypocrisy. People trust those with opportunities. They have the ability to stay focused integrity and prefer to deal with them, as my father always —Amber Kossak, CEO of on a task while not being oblivious to everything else says “even bad men want to do business with good men”.

Solid Start happening around them.

Integrity is a quality we should all embrace.

EMPATHY The opposite of empathy is indifference. Empathic people identify with others’ emotions and know how to gauge what they are feeling. This is essentially an intuitive trait. You want employees who are empathic towards customers, and vendor partners who are empathic toward you and your team. They read people well, both their motivations and intentions. Empathy is where the idea of walking a mile in another’s shoes comes from.

DECISIVENESS The opposite of decisiveness is wishy-washy. Decisive people are confident decision-makers. Once they have settled on a course of action they stick with it. They tend to be more comfortable with risk. They understand that risk and uncertainty are part of the game, and when called upon to make a decision, leaders take action.

RESPONSIBILITY Responsibility means being accountable for one’s actions. Responsible people know the rules and what is appropriate both in and out of the

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CONFIDENCE Many of these concepts are interconnected. Confidence intersects with decisiveness and courage. Confidence is related to self-assurance regarding one’s abilities, though unwarranted overconfidence (pride) can be a flaw. It’s more than useful to find a balance between confidence and the humility that keeps us teachable.

FINAL THOUGHTS I began this column discussing the staffing issues many companies are facing right now. No matter if you are trying to keep the right people, hire the right people, or find the best vendor partner, remember that character counts. If you get the right people with the right attitudes, I’m confident your future will remain profitable.

Amber Kossak is the CEO of Solid Start, manufacturer of True Brand Products.

She has been in the automotive industry for almost 30 years and is serving on the AOCA board of directors. She can be contacted at kossak@solidstart.com. For more information please visit solidstart.com.

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THE FUTURE IS YOURS TO DRIVE When you decide to sell your quick lube business, understanding the cash generated by your business is the first step toward creating value to support your future The quick lube industry has seen big changes in the past several the future when the timing is right. Whether selling or leasing, ensure years. Technicians and owners are meeting new expectations from you’re working with a financial advisor to understand all the potential consumers while facing issues like employee shortages and supply tax impacts. chain disruptions. These pandemic-related concerns, along with new technologies and changing industry trends, have left many business WHAT IS MY BUSINESS WORTH? The next step is calculating EBITDA: owners with questions about the future of their operation.

Earnings Before Interest, Taxes, Depreciation and Amortization, or Owners with an eye toward selling their business should be mindful in other words cash flow. The buyer wants to know the cash you are of buyers who value the business based on pandemic-impacted generating today, and the cash they could generate if they owned your financial statements and point of sale (POS) data. Many business tomorrow. businesses that remained open during the height of the pandemic likely experienced a significant drop YOU’VE DONE THE LEGWORK, NOW WHAT? If you are ready in business, and the impact of the pandemic should Once the buyer works with you to calculate EBITDA, to sell, be sure to be excluded when valuing the business. Once these and both parties remain interested, you’ll move into adjustments are made, actual oil changes, ticket, the next stage which includes a Letter of Intent (LOI). discuss with your expenses, and resulting cash generated by your quick After the LOI is signed, the next steps will include buyer the options lube will remain the primary factors for valuation. The assessments in the form of surveys, environmental for compensation operation’s future potential will also influence the value testing, and market research. and benefits for of your business to the buyer, which could include factors such as nearby retail activity, demographic FAMILY AND EMPLOYEES current employees. data, and economic growth trends.

Employees and family often go hand-in-hand. If you are ready to sell, be sure to discuss with your buyer the options IF YOU’VE DECIDED TO SELL: You’ll need some for compensation and benefits for current employees. documents to track past performance. These documents generally If your family has worked with you to make your store a success, include the last three years’ POS data and a breakdown of oil changes there may also be employment opportunities with the company who is versus other services, products or repairs sold on site. As previously purchasing your business or opportunities to fund different dreams. mentioned, past performance will be used as the starting point to value And how will you spend your time once the ink is dry and your people your business. Most investors simply want a clear picture of how your are taken care of? Take time to do what you have always wanted to do: overall business looks, performs, and trends under normal operating spend more time with loved ones, travel, or enjoy other hobbies! You’ve conditions, and a solid buyer can help you get there by partnering with earned it! you throughout the entire process.

To learn more about transitioning into the next stage of your business, visit: ValvolineQuickLubes.com/frequently-asked-questions.

IF YOU HAVE A LEASE: In this situation, make sure to partner with a buyer that is willing to work with your landlord to assume the lease, and If you are not ready to sell, but you need to grow, there are ways to increase prepare to provide the lease terms and other financial responsibilities. your oil changes by two cars per day over four years, guaranteed. This is a smart way to increase the value of your business in case you decide you IF YOU OWN THE PROPERTY: In this situation, the buyer may provide want to sell down the road. Put more cash in your wallet now and in the the option to buy or lease your property. A long-term lease may allow future. To learn more, visit ValvolineQuickLubes.com/grow-your-quickyou to postpone some taxes, avoid the time and expense of managing lube, or give us a call: +1 859-357-7303. the property, and still provide the flexibility of selling the real estate in You’ve got questions, we can help!

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2021

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ADVERTISERS/ PRODUCT INDEX) ADAPT (20) API (14, 50) AUTEL (34) 855.288.3587 AutoCenter Sales (38) 800.874.5793 Auto Data, Inc. (7) 800.767.7580 BendPak, Inc. (44) 800.253.2363 Buy Auto Supply (45) 602.449.1010 Chevron (2, 51) 866.354.4476 Devon Industries (52) 800.468.1970 Driverse (59) 800.600.4955 Eco Plug System (12) 855.ECO.PLUG Flo Dynamics (39)

CLASSIFIEDS CONSULTING My son and I just sold our 3 bay quick lube and car wash on the California/Arizona border. We never could have accomplished this without the help of Corporate Consultants International Inc. Jim O’Leary saw us through the process from the first word to the final wire. As a small 22 year old company, we appreciated the respect and professionallism Jim O’Leary provided us. Our choice to go with ISI served us well. We found out that a good computer system is an advantage when it comes to good records. We met Todd Ellis 22 years ago at an AOCA show, his service did not quit after we signed the contract.

Ultmately, we thank Grease Monkey, FullSpeed Automotive for seeing how our business could help further their brand in our area. We are sure they will serve our customers well.

EQUIPMENT & SUPPLIES

Integrated Services, Inc. LubeSoft - Modulube (60) 800.922.3099 Kafko International Ltd. Oil Eater/Degreaser (19) 800.528.0334

WE BUY QUICK LUBES!

M & M Service - Deep Blue Windshield Washer Concentrate (19) 800.657.9834

With over 130 shops acquired in 2019 alone, we know how to make it easy!

Phillips 66 / Kendall (48, 53) 877.445.9198 PM Attendant, Inc. (38) 866.341.7449

Call or email Take 5 Oil Change today, or check out our website for more info.

(980)-235-8380 dbacquisitions@drivenbrands.com www.take5quicklubesales.com

Roth Industries (8) 888.266.7684 Royal Purple (10) Service Pro (4) 800.313.2463 Shinn Buildings (8) 855.879.9995 Solid Start – True Brand (3, 54) 877.290.3950 Valvoline (25,36, 55) 859.357.7303

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2760 Ridgeway Ct. Walled Lake, MI 48390 1.800.444.4351 | www.herkules.us Herkules Equipment Corporation is ISO 9001 certified OCTOBER 2021

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LEADING EDGE

Lessons from Mashed Potatoes I CONSIDER MYSELF TO BE A PRETTY GOOD CHEF.

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

As a single dad with two beautiful teenage girls and a decent number of friends coming in and out of the house, I pride myself on serving up full plates and putting empty plates in the sink.

My recipes range from themes of Spanish, Italian, Asian, and American Southern dishes that are prevalent in the southern Louisiana area where I was raised. A quick glance at my Facebook account can get your mouth watering as I enjoy flaunting pictures of our home-cooked dinners often.

As a kid, I grew up healthy but poor. My mom worked hard to put food on the table for four teenage boys. One meal in particular was boiled potatoes and ground meat, which she called “poverty soup.” While the dish kept food in our stomachs, the blandness of the meal was not forgettable. This is probably the main reason for my swearing off of mashed potatoes in my house (or any other potato that is not deep fried).

On my son’s 24th birthday, he stopped by and requested mashed potatoes for his birthday. As a father, I obliged by boiling potatoes, and then mashing them up to put on the table. As my kids would later exclaim: “There is no love in these potatoes”. And they were right; I just walked through the path of least resistance to fulfill a request.

Don’t Be Bland No one has asked me to make mashed potatoes again, and I feel my long-term goal was met. So, what does my hate for mashed potatoes have to do with being a quick maintenance leader? People who are not inspired to achieve will usually take the path of least resistance to complete the task. We all know there are people who do not want to try their best and are just there to do as little as possible to keep the paycheck going. I am focusing on the ones that normally do great, but then give a lackluster performance in one aspect of their duties.

One of the more common examples is that four-letter word: sell. There are people out there who will greet your customer with a smile, take excellent care of the vehicle and keep a great looking shop area. If you give them a few filters and a handout and scoot them off to the waiting room, they suddenly monotone their way through a presentation and skip all add-on opportunities.

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Why would someone so talented give such a lackluster presentation? Most probably, they ate the poverty soup!

In normal terms, they have encountered something in their past so bad that the idea of having to walk in and suggest additional services transforms them into a comatose service writer.

The only real way to find out what is going on is through communication. Using the feedback model, the fourth step is to encourage a group resolution.

This will open up conversations about why the all-star stalls at the service counter. Once you’ve determined the true reason, you can discover ways to break through these roadblocks. Recently I was introduced to loaded mashed potatoes. This obviously had a much different taste and was palatable despite my childhood memories trying to overtake my taste buds.

You can assure your employee that sales are not always bad and can actually be interesting if you can alter the perceived environment with some different takes on it. Perhaps you can create a competition. One of my favorite stories was about a manager who would take over the pit duties if he came away with a “just the basic service” response from the customer. Someone else would take over the customer interaction until they had the same outcome. The competition would go on all day as pit days in the southern humidity and heat are not pleasant. Role playing and sales contests can be helpful but only to the right people. Highly competitive people will rise to the top, those who are not will quickly give up when they find they are trailing behind in sales contests.

I do not like the word “sell.” To someone who exclaims they sold something to a customer, I will quickly suggest a change in vocabulary to be serviced.

Sure, at the base it is still net sales, ticket average and profit margins, but changing from taking money from someone to performing a service a customer needs is the bacon, chives and cheese that change mashed potatoes into something I can consume.

Listening to your team members troubles with an open mind can quickly turn your poverty soup perception into loaded mashed potatoes. Oh, and if you have a good mashed potato recipe, shoot it my way.

The kids will thank you!

COURTESY LENNY SUACIER

Writing your recipe for success

NOLN.NET

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