NOLN - October 2023

D DIFFERENCE THE

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OCTOBER 2023 / NOLN.NET

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Attentive Energy Brett Morrison values adaptation and efficiency at his Castrol Premium Lube Express location in Burleson, Texas.

SERVICE STANDARDS Understanding the intricacies of running a successful shop in today’s industry PAGE 22

GARNER FEEDBACK

PAGE 33

OFFER QUALITY BENEFITS

PAGE 35

ORGANIZE YOUR FINANCES

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OCTOBER 2023 � NOLN.NET

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Attract Customers

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Your new business toolbox Drive your business forward with Castrol SYNC, a brand-new digital toolset for shop owners designed to help you maximize the performance of your shop. Unlock exclusive local insights, reach new customers, activate marketing offers, and earn valuable rewards along the way.

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VOLUME 38, ISSUE 10

10.23

CONTENTS 6 ONLINE

A decrease in catalytic converter theft 9 BY THE NUMBERS

Planned investments

QUICK HITS 10 INDUSTRY INSIGHT

Marketing shops to younger generations 13 AROUND THE INDUSTRY

AOCA announces rebrand 18 SHOP LOOK

Lube X-press Eastlake of El Paso, Texas

SERVICE 33 PIT STOP

Feedback from customers 35 HUMAN RESOURCES

Benefits for today’s employees 40 CASE STUDY

Bookkeeping strategies

FE ATURE 22 FEATURE STORY

Stellar Shop Operations

Two shop owners share their approaches to the quick maintenance shop structure and which details matter most.

BY HANNA BUBSER

Strategic Thinking At Castrol Premium Lube Express in Burleson, Texas, good customer service starts with an effective workflow.

An automotive innovation hub

COLUMNS 21 FROM THE SHOP

Tracking KPIs

BY A DA M TAT U M

50 LEADING EDGE

A helping hand

BY LENNY SAUCIER

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

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OCTOBER 2023

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COVER STORY

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10.23 VISIT

NOLN.NET TODAY

PODCAST

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

PHOTO: 262216217 | WELCOMIA | DREAMSTIME

CATALYTIC CONVERTER THEFTS ON DECLINE Catalytic converter thefts are showing signs of declining as the price of metals within the part becomes less valuable, USA Today reports.

The first half of 2023 saw thefts decline, according to catalytic converter theft data gathered by BeenVerified from the National Insurance Crime Bureau and search data from Google. With 26,742 catalytic converter thefts in the country between January and June, there has been a 43% drop in thefts from last year.

Washington, Oregon, and Hawaii experienced the biggest decrease in thefts in the first half of 2023. Only one state experienced an increase: New Jersey, which saw a 25% increase.

Much of the decline is potentially the result of the valuable metals within the catalytic converter becoming less valuable. Thieves typically steal this part to obtain precious metals such as palladium and platinum, but the prices for these materials have fallen in the past few months.

Though thefts have been on the decline, the number of catalytic converter thefts is still nearly 21 times higher than 2019, before the epidemic of thefts began.

“I am not sure that the consumer is seeing the benefit yet from the decrease in catalytic converter thefts,” stated Kerry Sherin, senior public relations manager for BeenVerified. “There is still a significant amount of theft.”

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ADVERTISERS/PRODUCT INDEX EDITORIAL

CONTENT DIRECTOR Matt Hudson

ASSOCIATE EDITOR Hanna Bubser

ASSISTANT EDITOR Kacey Frederick CONTRIBUTING WRITERS

Lenny Saucier, Adam Tatum, Carol Badaracco Padgett

EDITORIAL ADVISORY BOARD

Lenny Saucier, DIRECTOR OF RETAIL TRAINING, FULLSPEED AUTOMOTIVE

Pete Frey, OPERATOR, TAKE 5 OIL CHANGE Adam Tatum, DIRECTOR OF OPERATIONS, VIRGINIA GROUP Bill Floyd, OPERATOR, LUCAS OIL CENTERS

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American Petroleum Institute (API) (32, 44)__________________________________ AutoCenter Sales (37)__________________________________________ 800.874.5793 BG Products (45)_____________________________________________________________ BP Lubricants USA, Inc. (4)___________________________________________________ Chevron Lubricants (2, 46)_____________________________________866.354.4475 Corporate Consultants Intl (7)__________________________________ 518.469.0983 Devon (Cover)__________________________________________________888.500.0353 Driverse (12)___________________________________________________800.600.4955 ExxonMobil (8)_______________________________________________________________ ISI Software (52)_______________________________________________800.922.3099 Kafko International (15)______________________________________________________ Lucas Oil (20)________________________________________________________________ Mighty Distributing System (34)_____________________________________________ Milton Industries (16)__________________________________________ 800.231.1525 Premium Velocity Auto LLC dba Jiffy Lube (43)_______________________________ RelaDyne (51)__________________________________________________ 317.696.3009 Roth North America (39)_______________________________________888.266.7684 Royal Purple (38, 47)_________________________________________________________ SEMA (17)___________________________________________________________________ Solid Start (3, 48)______________________________________________ 877.290.3950 Valvoline (24, 31, 49)___________________________________________ 859.357.7303 Wrenchers (14)_________________________________________________ 800.261.7729

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ART AND PRODUCTION

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OCTOBER 2023

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Your shop.

Your hustle.

Your success.

Powered by Mobil™

Our Mobil offers are built with independent operators in mind.

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

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

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NUMBERS

10.23

INVESTING IN THE FUTURE

Shop owners are not usually in the business of self-sabotage. Plans put in place for a shop’s future are often done with the best of intentions. Goals that revolve around offering better service, reaching more customers, or improving a shop’s appearance are fueled by the desire to be a quality quick lube shop.

In the 2023 NOLN Operator Survey, respondents were asked about their planned investments. Some answers were about developing staff while others were about the physical shop. What are your plans?

WHAT’S HIGHEST ON YOUR LIST OF PLANNED INVESTMENTS?

10%

Add staff

14%

New location

14%

25%

23%

Training

None planned

Equipment

Current shop expansion or remodel

14%

h

FIND OUT MORE

Are you interested in pursuing a remodel or expansion for your shop, but aren’t sure where to start?

Creating the right plan for your specific goals can do wonders. Search for “Changing the Building” on noln.net for some advice from Jason M. Russ of CB Squared Services, a Jiffy Lube franchise.

OCTOBER 2023

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INDUSTRY INSIGHT

How shops can capture the attention of the younger generation

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

AS VEHICLES CONTINUE TO AGE and change, so do people.

Staying in touch with trends among younger demographics and learning how it will relate to your business’s advertising is something every successful business is conscious of.

Sara Fraser of Haas Performance Consulting is not only familiar with how to market for independent shops, 10

but how to make that marketing appeal to all age demographics. She shares her insights with NOLN into what shops can do–and avoid–to capture the attention of Generation Z and beyond.

Making Your Virtual Mark The biggest way to reach young audiences is online, and investing in online advertising is a simple and effective

way to get your business seen. The best platforms to focus on are typically Instagram and TikTok, as data has shown that most users on these platforms range from 18-to 34-years-old.

An online advertisement will stick with most young people if it seems genuine, and a shop can achieve this by portraying themselves as transparently as possible. Using photos taken

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ZOOMERS ON THE ROAD

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INDUSTRY INSIGHT

of the actual shop and its employees in advertisements as opposed to stock photos is a good way to communicate that sentiment.

“They’re really looking for honesty, transparency, (and) upfront information. They want the facts–like they are going to do their research, they’re going to read reviews–that kind of stuff,” Fraser says. “So (avoid) anything that’s kind of gimmicky, or just not transparent and truthful.”

Indeed, most young people are proficient with the internet and like to do research before paying money for a product or service. A shop that has its information easily accessible is more likely to capture the attention of the young internet researcher–especially in an automotive emergency.

If they must click through several tabs to find basic information, such as the shop’s address or services offered, many will simply go to the next shop on their list rather than scour through the website. One way to counter this happening is to create an FAQ page.

Another key step to focus on is setting up your shop’s Google profile. This is commonly overlooked but can in fact lose the attention of many prospective clients.

A Google profile contains information that will be used to direct related searches toward your business. If a shop hasn’t looked over its Google profile and included what services it provides, it may affect how often it shows up in online search results.

“When this customer is deciding, ‘Okay, I need to take my car for auto repair,’ the first thing that they’re doing is probably going into Google Maps, and they’re searching ‘auto repair near me,’” Fraser explains. “But what if that person types in ‘oil change near me,’ or ‘brake repair near me?’ If the shop’s Google profile isn’t set up to include those other services, they might not show up in those searches.”

And when marketing to the young generation of internet researchers, having that Google profile set up to include

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Miles of Road Ahead A decline in the demand for automotive work doesn’t seem to be likely with the incoming generation.

Though ride-hailing services have become more common, most young people still plan on owning their own vehicle. Having a personal vehicle makes life easier in many ways, but it can also serve as a source of income for many, especially young people trying to get by.

Shops can not only gain clients from understanding how to connect with the younger generation, but also attract people in that demographic that are looking for a career.

As the industry faces a shortage of technicians, it’s important to learn how to market not only your services to

in this age group, it tends to be that safety is always in one of those top three,” Fraser says. “So, they’re looking for a safe environment–and that’s physically safe, and also mentally safe, they want to know that they’re not going to have to deal with harassment and bullying at work.”

This can be achieved by expressing sentiments in job ads about the company culture and showing that your staff are team players who take care of each other and have a good work-life balance.

Hosting outings or lunches with the shop staff is also a great way to build a genuine bond that can appeal to that demographic of young people first entering a field.

With the entirety of Generation Z soon being able to own and drive their own vehicles, it’s certainly not a group of people the auto industry should ignore.

potential customers, but your workplace to potential talent. Fraser has assisted many shops with the hiring and interview process and has found the most important thing for those entering the field is having a job that provides security.

“I always ask in an interview ...

‘What are the three most important things for you in your next job?’ And

Many strategies for attracting younger demographics, such as increasing your business’s presence in search results, will yield successful results, but being aware of Generation Z’s role as the informed customer and their specific concerns will help attract potential lifelong relationships, if not the beginning of a successful career in the auto industry.

you in as many search results as possible is crucial in gaining their business.

OCTOBER 2023

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AROUND THE INDUSTRY

AOCA ANNOUNCES REBRAND

The Automotive Oil Change Association (AOCA) has announced plans to change its name to Preventative Automotive Maintenance Association (PAMA), according to a press release.

Though the company is rebranding, its services remain the same. PAMA upholds its commitment to working with oil change operators and believes the rebranding better reflects the importance of vehicle maintenance as a whole.

More updates will follow as the company rolls out its new name through fall 2023 until it finalizes in early 2024.

“Oil change operators have been the heart and soul of our association, and this rebranding underscores our unshakable commitment to their success,” said PAMA President Matt Webb. “Our new identity, Preventative Automotive Maintenance Association, encapsulates our dedication to providing preventative maintenance professionals with the tools, resources, and support they need to excel in an industry that is constantly evolving.”

JIFFY LUBE INTERNATIONAL APPOINTS NEW PRESIDENT

Jiffy Lube International, Inc. has announced Luke Byerly as the company’s new president, according to a press release.

Since beginning his career with Shell in 2006, Byerly has garnered much experience in sales, operations, and marketing through a wide array of channels including manufacturing, mobility, lubricants, and strategy and portfolio.

Prior to his time at Shell, Byerly held several roles at Citgo Petroleum.

As president of Jiffy Lube International, Byerly will oversee over 2,000 independently owned Jiffy Lube service centers throughout the U.S. and Canada.

“I have the immense opportunity to work with our dedicated Jiffy Lube franchisees, each of whom are extremely

passionate about the Jiffy Lube brand and delivering an exceptional customer experience,” Byerly stated.

FULLSPEED AUTOMOTIVE APPOINTS GENERAL COUNSEL

FullSpeed Automotive has announced Kelvin Sellers as the new general counsel for FullSpeed Automotive brands, according to a press release.

Sellers holds nearly 15 years of experience in the aftermarket field as well as with law firm, public accounting, and in-house counsel.

Serving previously as vice president and general counsel for Interstate Batteries, Inc., Sellers helped with leading long-term legal strategy and was recognized with honors including the Texas Diversity Council’s Top General Counsel Award, National Diversity Council’s Most Influential African Americans in Business, and The Dallas 500 - The Most Powerful Business Leaders in Dallas-Fort Worth.

As general counsel for FullSpeed Automotive brands, Sellers will help the company achieve profitable growth and identify roadblocks to achieving company goals as a whole.

“Kelvin’s vast experience and accomplishments in the automotive and aftermarket space are admirable and impressive,” said FullSpeed Automotive CEO Rob Lynch. “I’m very excited to be able to bring him on as General Counsel at FullSpeed, and I know he will do great things in this role to help support our brand and franchisees.”

LIQUI MOLY USA PARTNERS WITH YOUTUBERS AUTOTOPIA LA

LIQUI MOLY USA announced its strategic partnership with Autotopia LA, a distinguished YouTube channel focusing on exceptional and unique cars, in a press release.

This collaboration brings together

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two industry leaders with a shared passion for automobiles, innovation, and enhancing driving experiences and sets the stage for “a series of engaging content, events, and initiatives that highlight the performance, power, and beauty of cars,” stated the press release.

LIQUI MOLY USA will contribute products to Autotopia LA’s videos to demonstrate to the channel’s audience how its additives and oils enhance engine performance, fuel efficiency, and overall longevity while Autotopia LA will speak with LIQUI MOLY experts on the science behind the brand’s products.

“We are incredibly excited to partner with Autotopia LA,” said Sebastian Zelger, CEO of LIQUI MOLY USA in the press release. “This collaboration allows us to connect with car enthusiasts in a truly immersive way, offering insights into how our products can elevate their driving experiences.

Autotopia LA’s dedication to curating exceptional content aligns perfectly with our commitment to excellence in automotive care.”

Autotopia LA’s host, Shawn Davis, added, “Our collaboration with LIQUI MOLY USA opens up new avenues for us to delve deeper into the world of automotive performance and maintenance. With LIQUI MOLY’s expertise, we can bring our viewers even more comprehensive and informative content that adds value to their passion for cars.”

ADVANCE AUTO PARTS NAMES NEW CEO

The board of directors at Advance Auto Parts has named Shane O’Kelly as president and CEO, effective on Sept. 11, according to a press release. O’Kelly also joined the board of directors on that date.

O’Kelly, 54, has more than 40 years of professional experience. Most recently, he was CEO of HD Supply, a subsidiary of Home Depot. Prior to that, he was the CEO of PetroChoice, the country’s largest distributor of lubricants, the press release says. Before that, he was OCTOBER 2023

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AROUND THE INDUSTRY

CEO of AH Harris, a construction supply distributor.

O’Kelly also served as a U.S. Army captain and has an MBA from Harvard Business School, as well as a bachelor’s degree from the U.S. Military Academy at West Point.

“I am honored to be joining Advance at such an important inflection point for the company,” O’Kelly said in the release. “I have great respect for the talented team members at Advance and all that has been accomplished, including the team’s relentless focus on delivering for customers while navigating the challenging competitive and macroeconomic environment. As we undertake an operational and strategic review of the business, I look forward to working alongside the entire Advance team and our board of directors to drive growth, operational excellence and value for all stakeholders.”

O’Kelly succeeds Tom Greco, who was CEO at Advance since 2016. Greco will retire but stay on as an advisor during the transition.

Additionally, Advance announced Tony Iskander as interim chief financial officer, succeeding Jeff Shepherd. A search is under way for the next permanent CFO.

NHTSA STEPS BACK ON ANTIRIGHT TO REPAIR STANCE

The National Highway Traffic Safety Administration (NHTSA) has allowed Massachusetts to proceed with its recent right-to-repair legislation, CBS News reported in August.

NHTSA had instructed automakers to disregard the law earlier this year, which had been overwhelmingly approved by voters in 2020.

The organization cited the Federal Vehicle Safety Act as the basis for its position, claiming that allowing more access to vehicle data could make it easier to steal data and vehicles themselves.

This was challenged by Senators Elizabeth Warren and Ed Markey, who wrote to Secretary of Transportation Pete Buttigieg and NHTSA Deputy Administrator Sophie Shulman urging them to reconsider.

With some security changes, the law will now be enforced without pushback from the agency.

“The Right to Repair Coalition is pleased to see that NHTSA has reevaluated its position and concluded there are multiple ways to implement the right to repair law that don’t conflict with the Federal Vehicle Safety Act,” stated Tommy Hickey, executive director of the Massachusetts Right to Repair Coalition.

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AROUND THE INDUSTRY

WIAC SCHOLARSHIP PROGRAM HITS NEW RECORD

Women in Auto Care gave 86 awards totaling $413,500 in value this year, setting a new record with its scholarship program, according to a press release.

The scholarship program assists female students in the U.S. looking to begin a career in the auto industry.

The awards were comprised of cash scholarships as well as starter toolkits. Women in Auto Care awarded five $7,000 cash scholarships totaling $35,000, as well as its largest scholarship to date, amounting to $10,000.

Twenty toolkits valued at $9,000 each were also given, as well as an additional 10 toolkits valued at $4,250 each.

Having started in 2004 with $2,000, this marks the sixth year in a row the organization has broken a record in

the amount of scholarships and supplies offered. This year saw over a 10% increase from the record set in 2022.

“I am especially proud of our tool program which awarded 30 pallets of tools to aspiring female technicians,” said Women in Auto Care Chair Jessica Toliuszis. “We are deeply grateful for the support from the entire extended community. Thanks to our sponsors, we are funneling the talent pipeline in the automotive aftermarket with diverse candidates.”

AACF RESPONDS TO MAUI FIRES

The Automotive Aftermarket Charitable Foundation (AACF) announced its commitment to support affected families in the Lahaina fires in Hawaii that occurred in August.

As the impact of the wildfires con-

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tinue to destroy much of the island displacing families and causing distress on industry partners, the AACF is providing much-needed resources and expertise to assist aftermarket industry families hit hardest by the event.

As stated in the press release, “The AACF’s commitment to supporting aftermarket industry companies and their teammates’ welfare is evident in their swift response to crises. With a focus on collaboration, the organization has established a dedicated relief fund to provide financial assistance to families grappling with the aftermath of the fires. This initiative not only addresses the immediate needs of these families but also underscores the AACF’s dedication to recovery efforts.”

Joel Ayres, executive director of AACF added, “During times of crisis, it is essential for the aftermarket industry to come together and support one

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AROUND THE INDUSTRY

another. We understand the challenges that these families are facing, and our goal is to offer them a helping hand, reminding them that they are not alone in this journey toward recovery.”

MIDAS GATHERS RESOURCES FOR FLORIDA STUDENTS

In September, Midas called on team members from across the U.S. and Canada to gather in Florida’s West Palm Beach area to provide resources for local students in need, according to a press release.

Midas staff in the area as well as those traveling from other Midas locations gathered in the Learning Center of TBC Headquarters in Palm Beach Gardens on September 11 to fill ‘911 backpacks’ with school supplies for Palm Beach County students.

The effort is part of an initiative from Midas’s parent company, TBC Corporation, called #DrivenToGive.

The initiative is part of a 65-year effort to encourage team members to become involved with helping the community as well as its support of national philanthropic programs.

The 911 backpacks were equipped at TBC’s Palm Beach Gardens campus with the help of United Way before being disbursed to under-resourced families in Palm Beach County.

VEHICLE SERVICE PROS ANNOUNCES GREAT PRIZE GIVEAWAY

VehicleServicePros.com has announced the 11th annual Great Prize Giveaway contest, according to a press release.

As the home of Professional Tool &

Equipment News, Motor Age, and Auto Body Repair Network, VehicleServicePros.com will be giving away tools and equipment to readers. Readers have the chance to win $15,000 in prizes after selecting from several prize packs offered by VehicleServicePros.com.

The competition runs through October 31, with winners being notified by November 15.

To enter to win, readers must visit the Vehicle Service Pros website and click “Select My Prizes.” After choosing their top five favorite prize packs, they must submit their selection and can visit the website daily to raise their chances of winning.

Get more industry news at noln.net

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WHERE CONNECTIONS ARE BUILT

R P , W O N ACT

O E S A E R ICES INC

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0 3 R E B M N SE P T E

023 2 , 3 R E B O V E M• L AS VEGAS, NEVADA N — 1 3 R E B ER O

O C T GAS CONVENTION CENT L AS V E

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REGI / M O C .

SHOW

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QH

S H O P LO O K

LUBE X-PRESS EASTLAKE LOCATION:

EL PASO, TEXAS

STAFF SIZE:

9

SHOP SIZE:

3 BAYS, 1,750 SQUARE FEET

BY H A N N A B U B S E R P H O T O S B Y M AYA I S A B E L L A P H OTO G R A P H Y

SOAK UP THE SUN

The Lube X-press network was established by brothers Justin and Karlos Lazo with 10 locations in the El Paso area. The Eastlake shop opened in February 2022. Louie Chavez, director of operations for Lube X-press, says the Eastlake area of El Paso has grown in recent years.

“We felt it would be a great idea to open a Lube X-press store out there, to be a part of that growing community,” Chavez says.

The Eastlake shop is situated on a hill next to a nearby interstate. It was built from the ground up and has a drive-thru oil change model as well as the ability to conduct state vehicle inspections.

Chavez says the lobby is used mostly by vehicle inspection customers. They offer Lube X-press bottled water and access to a television.

“We also have a tent that we put outside of our stores,” Chavez says. “So, our customers, if they want to enjoy a nice sunny day in El Paso, they can sit out there underneath the tent and just relax while their inspection is getting done.”

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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

QH

with logos and pictures of what makes us proud to call the city of El Paso our home,” Chavez says. “So, everything about our building aesthetics revolves around our guest experience.”

Karlos Lazo describes details like this as what creates a “wow experience” for customers.

“Everything we’ve done and do is really to improve the experience of our guests,” Lazo says. “It all started with them, and it all ends with them. That’s why we’ve done everything from lighting selections to colors to murals—it’s really to enhance the experience.”

OPPORTUNITY AWAITS

BRIGHT AND BOLD

The exterior of the shop is bright white and outlined in red. The service area floors compliment this color scheme with red flooring. But the eye-catching elements found at Lube X-press shops don’t end there.

“As our guests drive into the into the oil change base, we have a big mural of El Paso on the left-hand side of the wall

Lube X-press counteracts the dirty and dingy stigma that can be associated with quick lube shops through thoughtful prioritization.

“We pride ourselves in the bright and clean and organized setup of our locations,” Lazo says.

Now, there is a chance for this model to reach more markets. Over the summer, Lube X-press announced the addition of a franchise opportunity.

“It’s exciting for us to share with potential franchisees that are coming into this industry what we’re capable of and what they’re capable of,” Lazo says.

OCTOBER 2023

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FROM THE SHOP

c

What Drives Your Business?

Good KPIs to look into on a regular basis

ADAM

TATUM

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

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

Performance comes from growing your business through people.

ATAT U M

PHOTO: LUCAS MOORE

@V A L U B E .COM

THIS MONTH, NOLN DISCUSSES KEY performance indicators and how they can help you understand your business. Many of us have different roles within the organization that you work with and some of these numbers will be more important to you than others. In this month’s column, I will go over a few of the KPIs that I use on a regular basis and how this helps drive us towards profitability.

Car Count and Ticket Average Trends Now I will admit, many of you will say that we may be a little excessive in this report. I would venture to guess that there are several operations out there that just look at these reports on an annual or even two-year analysis. However, we use monthly and yearly trends that go back 10 years. We want to know where we were and what happened to flip the trend positive or negative. When looking at these reports, we can see when traffic pattern changes or competition opening in the area affected our customer base. This is also a good way to see who your performers are that could be your next upper leadership role. If someone comes in and just skyrockets up, they are doing something that you need to replicate across the business.

We use the ticket average trend line to determine what effect changes to base price took to customer counts. This can help you determine whether you want to make a pricing increase.

Preventative Services Report Another good KPI to check to track sales of certain categories in your location. This report you want to look at over a period. A good one is to check weekly and monthly. The benefit is that this gives you an overview of your centers’ presentation to customers. I will give you an example of what I pull for reference. I pulled up a tracker that tells me percentages of customers purchasing an air filter or cabin air filter, a set of wipers, a tire rotation, or a light bulb. Why do I care

to know just this small amount of item categories? These are the simple things that your team should be checking or offering to every customer with a need. If the numbers are much lower than the rest of your organization, then that is a key indicator that the team may not be pulling them or checking them, lessening your service standards and quality.

Labor and Traffic Reports This is a good way to minimize your costs in the shop. Labor is the largest vacuum of funds from your business, with materials being right behind.

By looking at a traffic report or hourly trend report, you will be able to determine approximately how many people that you need to have on the clock at that time to service the average customer counts that you will likely face in that period. So, if you are doing one car an hour on average between 8 a.m. and 9 a.m. then you likely will not want six people on your clock just waiting around. What we look for inside our operation is to put the proper amount of people on the floor daily and maximize the available hours for days that are traditionally busier. I would rather have seven employees on the floor on a busy Saturday, because I took one off the schedule on a slower day, than wasting the dollars where they were not needed. What customers come to us for is speed and you want those bodies available and ready!

There are probably 50 different ways to look at reporting and index numbers to make a positive change in your business. I would like to hear what some of those are if you wanted to reach out. G.I. Joe always said, “Knowing is half the battle,” and that goes for anything that you are looking to succeed at. Knowing the pulse of your business is one of the most important tasks that you must deal with daily and if you put together the right set of tasks together to “see” this from an overview, you can be honest with yourself with what you need to take your team to the next level.

OCTOBER 2023 2023

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F E AT U R E

Fully Focused

Brett Morrison's team at his Castrol Premium Lube Express offers quick lube service with an attention to detail.

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Today’s

Service Su

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PHOTO : THOMAS LOPEZ

Successes

It’s all hands on deck to craft an effective approach to the quick lube business model By Hanna Bubser OCTOBER 2023

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804 QUICK LUBES ACQUIRED SINCE JANUARY 2014, AND COUNTING!

WE BUY QUICK LUBES

Valvoline is seeking ™

single and/or multiple locations performing 7500+ oil changes per year.

Contact the Valvoline Quick Lubes Team

(859) 357-7303 SM

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VRS-VIOC-2985-EN ©2023 Valvoline 9/23 TM Trademark, Valvoline or its subsidiaries, registered in various countries.

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

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If PHOTO : BRAINSTORM BABE PHOTO

you ever find yourself steering a ship, running a quick lube shop might not be the first thing on your mind. But guiding a ship to safety and overseeing a successful business are two tasks that share some commonalities.

No one wants to feel lost at sea, either literally or figuratively. For quick lube service, this means keeping track of key performance indicators and the day-today operational details that keep your ship afloat.

In the 2023 NOLN Operator Survey, NOLN asked respondents about many KPIs from car counts to gross sales, bay times, and more. You’ll see some of that data reflected in the following pages. You’ll also hear from two shop owners who are in the same boat as you are—running a shop in an aftermarket filled with challenges and opportunities.

You’ll read about what steers their ships, and the ships of survey respondents. What steers yours?

THE FIX-IT MENTALITY

Robert Weissberg is the owner and operator at the helm of a co-branded Midas-SpeeDee location in Watsonville, California. Due to the nature of his shop’s setup, Weissberg and his team are able to accommodate a wide range of services.

“Our funnel of services (is) pretty wide, so we’re able to do alignments, tires … you name it, we can do it,” Weissberg says.

Service Selection

Robert Weissberg's co-branded MidasSpeeDee shop has a variety of service options.

Weissberg’s bay setup can service four oil changes at a time. On the repair side, they have the ability to bring cars in on both sides of the floor facing each other. In total, it adds up to about eight or nine bays. The shop also conducts California emissions testing and state inspections.

In terms of service trends, Weissberg resonates with a commonality that is seen across many shops: Customers are keeping their vehicles OCTOBER 2023

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F E AT U R E

longer. He also sees some drivers switching over to electric vehicles.

Weissberg says California is very environmentally focused as a whole, therefore there are many customers and drivers that fit into that mentality.

This leads to a larger population of EVs than may be seen in other parts of the country. This influx has inspired some additional learning opportunities. “(As far as) pivoting, trying to understand or get around the new EVs, especially in California … we’ve taken classes, we’re trying to get our technicians evolved with that, and new innovation,” Weissberg says.

Beyond EVs, technology across the aftermarket is another element that Weissberg is keeping his eye on.

“We’re really heavy on diagnostics, so we have a lot of scan tools. If you’re really going to think about pivoting, that’s probably the next … change in our industry,” Weissberg says. “We’re going to have to be very well equipped to … the big influx of the different cars (and) computers that we have to communicate with and be able to diagnose.”

Weissberg sees traditional oil changes and general maintenance continuing to grow and bring in customers. Overall, his shop is up about 7% this year compared to last.

“I always have the saying, ‘We live and die by our car count and ticket average,’” he says.

Taking a look at key components has the opportunity to reveal different trends. Weissberg has seen shifts at his own shop, and he also sees the larger impact of the greater industry at play.

“Car volume, car count, all those things are very important but at the same time I think car count is down with our customer count, but ticket average is up,” Weissberg says. “What has happened is, the industry is in a fluctuation period. But at the same time … the lube side of it, was about not loss leaders, but getting oil changes in, preventative maintenance stuff (and) ancillary sales. We were focused on pricing.”

He mentions the need to stay competitive, but not so much so that it’s impacting car counts. Time is the value.

“We are now realizing that we can charge a premium for our service because we are giving you the most valuable thing, and that’s time,” Weissberg says. “We are getting your car in and out in a 20-minute time period and you’re on your way.”

Weissberg compares this to what may happen at a dealership, where customers can’t necessarily get something like an oil change done fast. The structure doesn’t necessarily allow for the approach 26

THE DATA DOWNLOAD Successful navigation is something to be proud of, regardless of whether the waters you pass through are calm or choppy.

These two shop examples share what works for their structures, and perhaps some of it resonates with you and your own shop operations.

To ruminate on this idea even more, take some time to reflect upon the data shared in this story from the 2023 NOLN Operator Survey Report. What’s familiar to you? What stands out? At the end of the day, shop successes come in many forms.

47%

48%

Full Synthetic

WHAT IS YOUR MAIN BULK OIL (MOST USED)?

5%

Synthetic Blend

Conventional

BAY TIME Under 10 minutes

6% 38%

10-15

31%

15-20 20+

25%

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CAR COUNT

28%

0-20 cars

35%

21-40

28%

41-60

6%

61-80

3%

81+

59%

Owned

SHOP NETWORK

67%

1 shop

12%

2 shops

PROPERTY STATUS

3-10 shops

11-20 shops

41%

21+ shops

Leased

8% 6% 7%

QUICK MAINTENANCE BAYS

11%

1 2

32% 35%

3

17%

4 5 or more

5%

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F E AT U R E

At Brett Morrison's shop, many customers request full synthetic oil changes.

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if you have somebody that has the ability to train and understands the learning curve of that, then you’re able to get that person rolling a lot faster,” he says.

But ultimately, for Weissberg, success comes down to the simple things.

“You have to fix cars. If you’re in the automotive industry and you’re not fixing cars, you will not get repeat customers,” Weissberg says. “You have to fix cars, and fix cars the first time, and be very service-minded about customer service. We are in the customer service business.”

THE QUALITY FACTOR

In Burleson, Texas, Brett Morrison steers operations as the owner of a Castrol Premium Lube Express location. Morrison’s shop has three bays and eight to nine full-time employees.

“We try to stay real focused on what we’re doing, so mainly quick lube … we do a few tire rotations (and) we’re probably one of the only shops in town that does a lot of diesel oil change and fuel filters,” Morrison says.

His shop also does light A/C work, and while they don’t replace parts, they will do tasks such as a

PHOTO : THOMAS LOPEZ

Going Synthetic

that quick lube shops take. Even though Weissberg believes in the quick model, he understands the need for modern innovation as well.

“We have to adapt because … we don’t have warranty work. We don’t have fixed repairs that are driven into our locations,” he says. “So we have to adapt to be able to service anything that’s after.

We’re a five year after, right?”

Weissberg says consistent customer service is important in order for shops to succeed, and keeping technicians trained allows shops to adapt as necessary.

“The way we stay innovative is by being cutting edge (and) keeping our techs trained,” Weissberg says. “The ability to know more of the vast range of cars and being educated that way.”

Despite industry-wide challenges such as finding the right skilled employees to fill positions, Weissberg sees the opportunity for a new generation of qualified techs. He even cross-trains at his shop to allow those who work on the lube side to help service the repair side, and vice versa.

“The learning curve from a new technician coming into our industry and getting proficient is huge, but

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TICKET AVERAGE

GROSS SALES Less than $500,000

13%

27%

$50-$75

$500,000 to $1 million

29%

$1 million to $2 million

26%

More than $2 million

33%

$75-$100

40%

$100+

32%

GROSS PROFIT MARGIN

11%

Less than 30%

27%

30-39%

16%

40-49%

14%

50-59%

20%

60% or more I don't track gross profit

12%

COUPONS Operators who use:

Typical discount offered (in a dollar amount):

64% 62% 56%

22% 43% 33% 2%

Physical Coupon Digital Coupon Other promotion

Up to $5 off service $5-$10 off $10-$20 off More than $20 off

This story uses data from the 2023 NOLN Operator Survey. Special thanks for Valvoline for sponsoring this year's survey.

OCTOBER 2023

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Top-Tier

Robert Weissberg keeps technicians trained and ready for industry adaptation.

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freon top off. Another service was added more recently and was inspired by the relationships Morrison’s shop has built with the local police and nearby fire department.

“The chief of police, he’s now a friend of mine that I had known through the shop, came in and asked if we could do something about the catalytic converter situation,” Morrison says. “So based on his suggestion, we brought in cat etching.”

But when Morrison looks at the oil changes being conducted, there are several details that he keeps in mind.

“One of the things I look at when we just look at specifically oil changes is where are they going? Is it conventional? Is it the high mileage? Is it the full synthetics? When we opened, we had a lot of conventional oil changes,” Morrison says. “Today, it is so minute it’s barely on our radar. Most of the people that come in here come in for a full synthetic oil change.”

Morrison says this includes the customers that are maintaining their older vehicles rather than buying new. Considering the age of the average vehicle on the road has increased in recent years, it’s an important factor.

“A lot of those 12-year vehicles are still that high end full synthetic oil or people are wanting to put in a higher end oil, not just the conventional maybe a synthetic blend or a high mileage oil,” Morrison says. “Because of that it drives our ticket prices up.”

The trend at Morrison’s shop is a move away from conventional oil changes and towards higher-end oil changes. His shop does not offer coupons or promotions outside of the giveaway item promos sometimes offered by Castrol. Morrison says this

means customers seeking a lower end conventional oil change may choose to go somewhere else. But in turn, this raises the shop’s average ticket.

“I do see a change in the number of customers that are coming in and the average ticket both, and it’s growing and that’s something that I personally look at every day,” Morrison says. “I try to stay within a 30-day window, but I always look back to where (we were) this time last year. So, we’re showing really good percentage increases every month and I think a lot of that is due to those lower end customers going somewhere else and we’re getting a bigger majority of the higher end customers that are buying the $100-plus oil changes rather than the $50 oil change.”

Another big focus for Morrison is efficiency. For example, when COVID hit, his shop didn’t close.

He implemented an immediate stay-in-your-car model to protect his staff and keep his customers comfortable. It had a lasting impact.

“We never got off of that. It improved our workflow tremendously, just by doing that one little thing. And we got great feedback from the customers, they all love it,” Morrison says. “I’m going to guess that it probably increased our efficiency by at least 20%, maybe 25%.”

This increase came from a quick response and adaptation. It was a strategic move that provided a service solution, and it has stuck.

“Being able to adapt in any business is super critical, and I think that’s just business 101,” Morrison says.

He holds a high standard of quality, and it pays off. The team gets compliments on their customer service. Some of the details incorporated for customers include blowing air conditioning into the vehicle during service, offering cold water from an ice chest and even handing out cookies. His wife works in the shop about once a week as well, which he says has made a positive impact, especially on his female customers.

Morrison personally trains every employee.

When they first come in, he gives them information and eventually walks through working on the car with them. They also do live training events in the shop once a quarter.

“We have so many people comment (that) they can’t believe they got in here and out so quick and all the stuff we got done in that little time frame,” Morrison says of the shop’s service. “We have implemented so many little bitty things that they all add up to one big, huge improvement in efficiencies.”

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F E AT U R E

NOLN.NET

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2305

Is it time to grow or sell your business?

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

Grow your business

Sell your business

or

to a trusted industry leader

with a powerful partner Join the hundreds of quick lube owners who benefit from our industry leading program, Express Care. Receive hands-on expertise and proven tools that drive business growth.

Valvoline has acquired more than 700 quick lubes since 2014 and offers owners a straight-forward valuation. Our ownership transition aims to protect your legacy by focusing on you, your employees and your customers.

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

US-DIG-2541-EN

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

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9/19/23 2:57 PM 4/4/23 8:35 AM

To search the complete list of licensed companies and products, visit our licensee directory at:

API.org/EOLCS

SERVICE S PI

U R RCE VI NG

LU

SO R E NSE CO

SAE 5W-30

S

P

A

API-LICENSED ENGINE OILS DRIVE PERFORMANCE

API-licensed oils display an API certification mark to signify the highest performing oils.

SN

P

AUTOMOTIVE MAINTENANCE SHOP OWNERS AND THEIR CUSTOMERS CHOOSE API’S L I C E N S E D O I L S T O I M P R O V E E N G I N E P E R F O R M A N C E A N D F U E L E C O N O M Y, F I G H T E V E RY DAY W E A R A N D T E A R A N D H E L P R E D U C E E M I S S I O N S .

© 2023 – American Petroleum Institute, all rights reserved. API and the API logo are trademarks or registered trademarks of API in the United States and/or other countries. API Marketing & Communications: 2023-093 | PDF

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PI T STOP

LUBING THE ODDS OF GAINING CUSTOMER FEEDBACK

Encourage customer perspective about their shop experience

PHOTO: 30458956 | HONGQI ZHANG �AKA MICHAEL ZHANG� | DREAMSTIME

B Y C A R O L B A D A R A C C O PA D G E T T

MOST BUSY VEHICLE OWNERS DON’T WANT TO STEER into your quick lube in the first place. They pull into your parking lot because it’s time and they simply have to.

But if they have a good experience when they stop in for service, you’re likely to see them again and they’re likely to give you a favorable review. So, it behooves shop owners to go the extra mile to understand what customers like—and don’t like—about their experience in the shop.

“In general repair, it’s all about the relationship, but in quick lube it’s more transactional,” notes Kevin Vaught, executive council member at Elite Worldwide, a team of industry experts that coaches shop owners around the country.

To illustrate Vaught’s point, an auto repair shop might service 300 cars a month on average, allowing enough time for the shop to interact with each customer in the process.

Quick lube businesses, on the other hand, might serve 1,200 cars each month, with customers in and out in a flash. But in both scenarios, cultivating a relationship with the customer is equally critical, Vaught notes, because that relationship can increase the likelihood that a customer will open up and share insights.

So, how can a lube shop owner make sure the business transaction process leads to repeat business with a customer? And to ongoing business that’s conducive to building a shop-client relationship?

Vaught says quick lube businesses must ace these eight simple touch points for success—tactics he learned early on while running five successful shops simultaneously (and then effectively retiring at age 42).

1. Make sure your people answer the phone the same way each time—and that it’s pleasant.

2. Consider what the customer sees when they drive up to your business. What does your shop look like from the road?

3. When a customer walks in the door, does the shop look and smell clean? (Do your people behind the counter wear name tags? They should, Vaught says.)

4. Consider the greeting a customer will receive as they come

through the door. It should be friendly and, if possible, it should include the lost art of calling people by name, Vaught says, explaining, “It’s an anxiety-reducer. And we have to do whatever we can to bring down the anxiety level of the customer.”

5. Decide how your business will present its work to the customer. As Vaught says, “I don’t like the term ‘sell’—we ‘present.’” So consider: How will you handle the presentation? “Don’t simply walk up to the customer with a dirty air filter in your hand,” Vaught states.

6. Keep the customer updated on their service. Today, that is best accomplished with a text, Vaught says. That way, the customer knows exactly what’s going on with their car and when it will be ready to roll. No anxiety, and no pacing the floor.

7. The sales transaction: When you take their money, remember to thank them. The handling of this transaction sets up the next sale, according to Vaught, who says, “Don’t just rush through and grab the credit card.”

8. This is where the rubber ultimately meets the road. Find out from the customer how their service went and how your people did. Vaught says one successful way to gain customer feedback in a quick lube scenario is to send customers an automated text after the service, thanking them for their business and asking them to leave a review. Another way is to simply call them. “Keep it very open-ended,” he suggests.

“Ask, ‘Bill, how’d my people do?’ If they didn’t like something, maybe even something trivial like grease on their door handle, they’ll say. And you’ll have a chance to fix it.”

In order to ensure a good customer experience each time, like clockwork, Vaught says these eight touch points should become policy.

“This is how we do it, and we do it every day,” he emphasizes. “But if you don’t have a written process, it won’t last.”

And he adds, “All these things cost nothing, but they add value through the roof.”

Value that will bring customers rolling up to your business again and again—and sharing equally valuable feedback about the experience.

OCTOBER 2023

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Our backroom shelves have never looked better – and neither have our sale sales!

– Car Care Manager

At Migh Mighty, hty, we’re here to help your business make the most of every e day and every bay. That includes in-person inventory management m customized to your service needs.

Have the rig right ght products, at the right time, without having money sitting on the shelf. We’ll be there to help make it happen and to make sure you’re thrilled with the results.

MightyAutoParts.com MightyAutoP

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:04 PM

HUMAN RESOURCES

BENEFITS THAT SPEAK TO GENERATIONS Y AND Z Get creative and develop benefits that speak to your team B Y C A R O L B A D A R A C C O PA D G E T T

use it to your advantage,” states Penny Yountz, a Statesville, North Carolina, auto industry benefits expert with Employers Advantage LLC, an HR company for small businesses.

Historically, for most workers that included benefits that helped them take care of their families—things like medical, dental, and vision insurance,

PHOTO: 1425794015 | SVETAZI | GETTY IMAGES

A MEAT LOTTERY. TIME OFF, WITH or without pay. Streaming channel subscriptions. A membership to Sam’s Club. Are these employee benefits?

Absolutely. And they’re helping quick lube business owners grab hold of the ever-elusive employee of 2023.

The idea: “Find something your employees like and benefit from, and

OCTOBER 2023

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HUMAN RESOURCES

short-term and long-term disability, and other core offerings.

For younger employees today, though, the benefits of old are lackluster. Instead, Yountz says they’re oftentimes in search of “work-life balance” options, a workplace term coined by the latest generations.

The Needs of ModernDay Employees

“They want the ability and freedom to live their best life now,” Yountz says.

“That may mean the flexibility to modify start and stop times. DoorDash or TV subscriptions—they’re interested in having employers pay for these things

United States Postal Service Statement of Ownership, Management, and Circulation (Requester Publications Only) 1. Publication Title: NOLN 2. Publication Number: 23608 3. Filing Date: 9/7/2023 4. Issue of Frequency: Monthly 5. Number of Issues Published Annually: 12 6. Annual Subscription Price: $90.00 7. Complete Mailing Address of Known Office of Publication (Not Printer): Endeavor Business Media, LLC, 1233 Janesville Ave, Fort Atkinson, WI 53538 8.

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Contact Person: Tracy Skallman Telephone: (818) 600-7156 Complete Mailing Address of Headquarters or General Business Office of Publisher (Not Printer): Endeavor Business Media, LLC,30 Burton Hills Blvd., Ste. 185., Nashville, TN 37215 Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor - Publisher: Andrew Johnson, Associate Publisher, Endeavor Business Media, 571 Snelling Ave N, St. Paul, MN 55104; Editor: Matt Hudson, Content Director, Endeavor Business Media, 571 Snelling Ave N, St. Paul, MN 55104; Managing Editor: Hanna Bubser, Associate Editor, Endeavor Business Media, 571 Snelling Ave N, St. Paul, MN 55104 Owner - Full name and complete mailing address: Endeavor Media Holdings I, LLC, 905 Tower Place, Nashville, TN 37205; Endeavor Media Holdings II, LLC, 905 Tower Place, Nashville, TN 37205;Resolute Capital partners Fund IV, LP, 20 Burton Hills Blvd, Suite 430, Nashville, TN 37215;RCP Endeavor, Inc, 20 Burton Hills Blvd, Suite 430, ,Nashville, TN 37215;Northcreek Mezzanine Fund II, LP,312 Walnut Street, Suite 2310,Cincinnati, OH 45202;Invegarry Holdings, LP,44235 Hillsboro Pike,Nashville, TN 37215;Everside Fund II, LP,155 East 44th St, Suite 2101 - 10 Grand Central,New York, NY 10017Everside Endeavor F1 Blocker, LLC, 155 East 44th St, Suite 2101 - 10 Grand Central, New York, NY 10017;Everside Endeavor International Blocker, LLC, 155 East 44th St, Suite 2101 - 10 Grand Central, New York, NY 10017;Everside Founders Fund, LP, 155 East 44th St, Suite 2101 - 10 Grand Central, ,New York, NY 10017;Suncap Endeavor Blocker, LLC,155 East 44th St, Suite 2101 - 10 Grand Central,New York, NY 10017;

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(2) In-County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.)

0

0

(3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid or Requested Distribution Outside USPS®

0

0

0 14,963

17,342

10,387

7,661

(2) In-County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources) (3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g. First-Class Mail, Nonrequestor Copies mailed in excess of 10% Limit mailed at Standard Mail® or Package Services Rates)

0

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(4) Nonrequested Copies Distributed Outside the Mail (Include Pickup Stands, Trade Shows, Showrooms and Other Sources)

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(4) Requested Copies Distributed by Other Mail Classes Through the USPS (e.g. First-Class Mail®) Total Paid and/or Requested Distribution (Sum of 15b (1), (2), (3), and (4))

d.

Nonrequested Distribution (By Mail and Outside the Mail) (1) Outside County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources)

0

0

e.

Total Nonrequested Distribution (Sum of 15d (1), (2), (3), and (4))

10,554

7,661

f.

Total Distribution (Sum of 15c and 15e)

25,516

25,003

g.

Copies not Distributed

204

421

h.

Total (Sum of 15f and g)

25,720

25,424

i.

Percent Paid and/or Requested Circulation (15c divided by 15f times 100)

58.64%

69.36%

16 Electronic Copy Circulation a.

Requested and Paid Electronic Copies

-

-

b.

Total Requested and Paid Print Copies (Line 15c)+ Requested/Paid Electronic Copies (Line 16a)

14,963

17,342

Total Requested Copy Distribution Distribution(Line 15f) + Requested/Paid Electronic Copies

25,516

25,003

58.64%

69.36%

c.

(Line 16a) d.

Percent Paid an/dor Requested Circulaltion (Both Print & Electronic Copies) (16b diveded by 16c x 100) x

I certify that 50% of all my distribution copies (electronic and print) are legitimate requests or paid copies:

17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the: issue of this publication.

18

Oct-23 Date

Tracy Skallman, Audience Development Manager

9/7/23

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

PS Form 3526-R, July 2014

36

or provide accounts. If they’re under the age of 26, they’re still on their parents’ medical plan, so medical, dental, and vision is the least of their concerns.”

It’s a good thing, because many momand-pop shops in the quick lube arena are small enough that they can’t afford to offer health insurance anyway.

“Health insurance is way too expensive if you have under 25 employees,” states John Joback of 10 Minit Oil Change in Fort Myers, Florida. He says it’s a benefit he personally can’t offer.

Where that’s the case, Yountz says employers might consider offering a stipend so employees can purchase insurance on their own. “In the five-to-10 employee range,” she notes, “This has become more popular.”

Something else Joback steers clear of are sales bonuses. “Instead, I pay people a little more because I don’t want them making pressure sales and turning people away,” he says. “Seventy-five percent of customers who are unhappy won’t say anything, they just don’t come back. So, we don’t do pressure sales.”

What Joback does offer is matching bonuses at Christmastime.

“I give them another check three weeks before Christmas that matches their salary,” he shares.

It’s mom-and-pop auto shop operations, like Joback’s, that Yountz enjoys focusing on most. She finds that there are always creative, highly useful things of value that small shop owners can offer their employees, if they’re willing to investigate a bit.

“So, I tell my clients, ‘Ask your employees,’” Yountz advises. “So many companies hesitate asking questions because they’re scared of the answers.

But they can get really good ideas of things that are valuable.”

Eat and Learn

Food, Yountz has found, is a perk that’s particularly high on the list of prime benefits in many employees’ minds.

One small company she works with, realizing how much its employees loved any type of food benefits, put together

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HUMAN RESOURCES

Get what employees want and need ...

If you offer the wrong things, it’s a demotivator.

lube, I’d expect a discount when I need the services. That seems like a no-brainer—discount your employees and their immediate families using the services.”

And she adds, “Of course, you would have to define ‘immediate family.’ But if we take pride in our workplace, we

- PENNY YOUNTZ, EMPLOYERS ADVANTAGE LLC

an ingenious meat lottery. When grocery prices started going up, the mom-andpop went to a local butcher, got a cow, and instituted the monthly event.

“One month the lottery was for hamburgers, and T-bone steaks another,” Yountz describes.

Education, too, is a highly valued benefit among younger workers today, she finds, although they tend to seek it in different forms than previous generations. For example, small shops might offer to pay for training that keeps employees up to date, and then reward the employee once the course is complete. The reward, she says, doesn’t necessarily have to be more money.

“I have one client who has created this culture with peg boards at everybody’s station, and you get a pin every time you complete training,” Yountz says. “It promotes pride and allows people to talk about what they did and how they got the pin. In the automotive world, there are so many different kinds of training – hydraulics, pneumatics, etc.”

Don’t Overlook These Perks “I think it’s a given,” Yountz says.

“If I went to work for at an oil and

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Subscriptions and Memberships

“Several years ago, a client wanted to add some type of pet insurance to their benefits offering,” Yountz shares. “But like I said, sometimes there’s hesitation to ask employees for their opinions. So, I asked this client if they had a population who would really want that.”

When the company finally asked, only two out of 50 were even interested in pet insurance. Instead, what they wanted was Sam’s Club membership.

“Get what employees want and need,” Yountz encourages. “If you offer the wrong things, it’s a demotivator. Show them you care by offering the right things that they want.”

Streaming channel and other TV service subscriptions go over big, as well, she notes.

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want our family to come and know they’re taken care of.”

Time off is another no-brainer, because it’s something that everybody is going to want and need, at some point.

For Joback at 10 Minit Oil Change, it comes in the form of accrued paid vacation and four paid sick days.

Among Yountz’s quick lube clients, a worker’s ability to take time off is held sacrosanct.

“It’s an expectation for most places,” as she puts it, and she strongly suggests: “If an employer can’t provide time off with pay, at least have options to take it off without pay, and let employees know it’s OK. That’s worth its weight in gold.”

Can You Say, ‘Fourday work week’?

This one might be part of the reason why some employers balk at asking

employees what they would value most in terms of benefits. But it’s certainly worth considering, Yountz says.

“I just did a webinar on the fourday work week,” she says. “There are things companies can do that they don’t think of that can be a benefit.”

Encouraging owners of small shops to think boldly about all the possibilities, she says, “Know your workforce and the individuals that are working for you— and their circumstances. And then you can do more customized plans.”

While not necessarily a proponent of a four-day work week, Joback does see the need to identify creative offerings that will draw in good employees and hopefully keep them there.

“It’s rough to get people to work, in general, in the climate right now,” he sums up. “Employee retention is hard, too. And you don’t want customers to see new faces every single time they come in.”

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C A S E S T U DY

KEEPING YOUR BOOKS ... BETTER

The importance of proper bookkeeping should not be overlooked B Y C A R O L B A D A R A C C O PA D G E T T

The Backstory

When Kildal took her first accounting class, she was hooked. So, she went straight to work as a bookkeeper for a silent partner in the auto repair industry.

40

Twenty years later, she still does the books for her first auto repair client, plus a whole fleet more.

From Kildal’s experience, shop owners can usually manage their businesses best and keep them running at top speed by taking their hands off the wheel when it comes to bookkeeping.

“People don’t start their shops to do bankroll reconciliations,” she states.

“So, I tell them to find someone to do the books, because you didn’t start your business to do that.”

She adds, “I don’t cut my hair. I find someone to do it.”

One of the key things Kildal says professional bookkeepers can help shops do—saving them money and headaches in the process—is stay on top of sales tax and make sure it’s filed and paid on time.

This service alone is probably more highly prized among shop owners than a 1964 Ford Mustang.

The Challenge

But what if a shop owner is just getting started and can’t afford to hire a professional bookkeeper?

“If you feel like you don’t have the budget, an Excel spreadsheet is free and it works,” Kildal says. “At least you can track with just that … and it makes tax time easier at the end of the year.”

No matter the tool a shop owner decides to use, Kildal stresses, “(Sound bookkeeping is) really important when figuring out your costs, (such as) what percentage of income do I want parts to be versus labor? We want to see 1:1, parts and labor about the same.”

PHOTO: 141957670 | BASHTA | DREAMSTIME

MOST SHOP OWNERS GET INTO the business to service cars for a living, either directly or indirectly— not to sit behind a computer and rack their brains trying to do the books.

So, that’s where Stacy Kildal comes in. The accounting-award-winning bookkeeper and owner of Kildal Services LLC in White Lake, Michigan, has made it her business to help auto shops succeed—without having to worry about their books in the process.

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C A S E S T U DY

Smart business practices like Kildal describes simply aren’t second nature for most people, though.

“There’s a stat somewhere that shows most small businesses don’t make it past three years. But once you have a good (bookkeeping) system set up for success, you can make decisions based on actual data and not just on feelings,” she notes.

Bottom line: If shop owners want to succeed and grow, they’ll need to see where their sales are coming from.

So as soon as a shop owner is able, Kildal suggests, “Budget in somebody to do this stuff for you so you don’t have to worry.”

The Solution

Kildal advises about the basics

necessary to make an auto shop run like a champ: “You’re going to want good shop software—a really good foundation with industry-specific software.”

For Kildal, a winning accounting system includes QuickBooks, her chosen bookkeeping tool for which she is designated an Advanced Certified QuickBooks ProAdvisor.

“For quick lubes, you want to know where your customers are coming from,” she notes. “(And) with QuickBooks, you can see where your customers found you.”

Another benefit of QuickBooks software is that it has a full auto repair shop track that takes into account all types of work, even including things like walk-ins and contracts shops set up with local school districts, for example.

Drawing on insights made possible by the software tool, Kildal says shop owners can also determine what buckets to put their marketing money into for the greatest returns.

What if the owner of an established shop currently has accounting and bookkeeping systems in place, but they aren’t sure they’re the best they can be?

“I would say find someone who can come in … set up a back office and make the workflow and practices the best they can be,” Kildal suggests.

She is regularly asked to look over shops’ existing accounting systems to make sure they’re still up to the task of helping businesses grow.

“A ‘Quick Review’ is what we call it, and we do it often,” she says of her company’s business analysis services.

She uses QuickBooks as part of her process, and it helps her determine the smartest marketing moves a company can make.

Of chief concern: “It’s really important to make sure their cost of goods and margins are where they want them to be,” Kildal notes. “What’s the revenue versus parts and labor?”

In other words: As a shop owner, you must make sure you’re making money, she stresses.

And she advises shop owners to up the ante and find someone who can help with search engine optimization (SEO) and marketing to boot. (Kildal sticks to her bookkeeping forte—practicing what she preaches—and has an experienced pro on her team to handle the SEO.)

The Aftermath

Whatever road shop owners take, the long-term business impact of putting a sound accounting and bookkeeping program in place is probably obvious.

“They’re going to be successful,” Kildal states.

“I look at my job as putting puzzle pieces together,” she adds. “(I’m looking for things like) are you doing things to the best of your ability? Can we get your parts cost down? Your labor costs down? What are local dealerships charging, and let’s get your costs in line.”

An auto shop can best track these costs and answer these questions with a really good foundation, Kildal reiterates, with industry-specific software.

“Whether or not it connects to QuickBooks is not a big deal,” she notes. “You (simply) want to have a good accounting software, regardless of what that is.”

The Takeaway

At the end of the day, Kildal shares this advice, drawing from her years of helping auto service businesses run at peak performance: “Don’t do your own books. Get it done correctly. And if you do it early, it will pay off.”

This same wisdom has benefitted Kildal and her own family, where she cut her teeth helping her dad do payroll for his business in the 1980s.

“For my 19th birthday I asked for a filing cabinet!” the pro bookkeeper looks back and laughs.

From the very beginning, the woman named among CPA Practice Advisor magazine’s Most Powerful Women in Accounting (six years in a row) was setting up a business for success.

OCTOBER 2023

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T E C H + TO OLS

MANUFACTURING, ENGINEERING, EDUCATION: ILLINOIS’ NEW EV INNOVATION HUB

How an EV compressor manufacturing facility became a center for innovation and careers

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

AS VEHICLES HEAD DOWN THE path of electrification, every aspect of the industry is impacted throughout the transition: from supply chains to research and development, to workforces.

TCCI Manufacturing has sought to address this with its new EV Innovation Hub currently in development in its hometown of Decatur, Illinois, along with the help of Illinois Governor J.B. Pritzker, Richland Community College, and the city of Decatur.

TCCI President Richard Demirjian and Vice President of Global Marketing Kara Demirjian Huss have offered a look into the work being done at the EV Innovation Hub and why it’s needed in the industry today.

Manufacturing: TCCI’s EV Compressors

TCCI specializes in compressor 42

manufacturing and began developing electric compressors for EVs in 2018.

Around two and a half years ago, TCCI was looking to expand its manufacturing operations. It has electric compressors produced in Ningbo, China, but was looking to bring more of that work to North America.

Illinois has been pushing for green energy projects within the state, so TCCI began conversations with Governor Pritzker’s office seeking support for an EV compressor manufacturing plant.

“Illinois has had this vision early on of being one of the leaders in electrification and the EV and energy industry, and so they really were instrumental,” recalls Huss.

This new facility will be equipped with a state-of-the-art assembly machining center that will produce anywhere from two kilowatts to 30 kilowatts and 24 volts up to 850-volt compressors.

As TCCI continued to have discussions about climate friendly technology, the topic of a facility for testing electric vehicles was brought up, sparking the idea for the climatic center and turning the manufacturing plant into something more.

The Climate Center for Innovation and Research is housed in the same facility but operates independently from the manufacturing segment. It will be a climatic tunnel that contains a 60-foot by 25-foot chamber, equipped with solar and a three-road dyno that is 800 horsepower per roll.

The tunnel will also be able to accommodate hydrogen fuel cell vehicles and will contain a fast charger inside the tunnel for EVs to test how well the charging works at all types of extreme temperatures, ranging from -30 degrees to 130 degrees.

The main purpose of the climatic center is to test innovations in not only the EV sphere but clean energy and climate technology as a whole, which can often branch out into other fields such as agriculture. It’s built in such a way that it has made ample room for potential expansions and add-ons in the future to accommodate different types of research.

“If there are particular researchers, or research programs that come down, this tunnel has a very flexible capability with it for add-ons,” Demirjian explains.

Many such research facilities are not open to other companies, with them often having to simply build their own if they wish to conduct tests–but TCCI will

PHOTO: 136472002 | MELPOMENEM | DREAMSTIME

Engineering: The Climate Center for Innovation and Research

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be opening access to the climatic center to any organization looking for somewhere to test equipment.

Education: The EV+ Energy Workforce Training Academy

The third piece of the EV Innovation Hub is the EV + Energy Workforce Training Academy, created in part with Richland Community College.

The program will be offered to high school students, allowing them to earn dual credits at the Innovation Hub campus while attending high school and having the opportunity to earn an Applied Associates of Science or an Applied Science Degree from Richland upon graduating high school.

TCCI has also established agreements with several universities throughout Illinois–such as the University of Illinois, Grainger College

of Engineering, and Northern Illinois University–to allow students that have graduated to continue their education by transferring their credits to engineering or computer science programs in pursuit of a four-year degree.

Students will have access to assembly lines and the climatic center right outside their classroom doors, allowing for an immersive, hands-on experience for them. TCCI also has plans to connect with companies such as Rivian, Lion Electric, Caterpillar Inc., and Navistar to establish apprentice programs and co-op programs.

“The days of that dark, dirty, dingy manufacturing facility just isn’t there anymore. We’re talking about automation on lines, technical skills,” says Huss. “We need students coming either out of high school or out of college, we need more engineers, we need

more individuals that have a computer science (background) with both the software and hardware capabilities because of the technologies needed in this space.”

The facility plans to launch in August 2024 and hopes to impact the auto industry and beyond.

As the transition to clean energy and electric vehicles continues, TCCI believes it’s imperative that the entire industry do its part to help hoist the sails. Demirjian hopes that similar projects will soon be seen elsewhere and is open to others visiting the EV Innovation Hub to use it as a template.

“Our involvement isn’t just about what we’re doing here at TCCI. It’s about helping the industry transition; making sure that our leaders in our company are out there being involved,” says Huss.

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FROM OUR PARTNERS

API Protects Shop Owners and Operators with Aftermarket Audit Program

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

One of the hallmark programs operated and managed by the American Petroleum Institute (API) is the Aftermarket Audit Program (AMAP). The program brings substantial benefits to oil change and automotive maintenance shop owners and operators through oil monitoring.

AMAP supports the API Engine Oil Licensing and Certification (EOLCS) program by overseeing the sampling of API-licensed oils in the marketplace and testing them to verify compliance with engine oil specifications. This can help oil marketers, distributors, installers and consumers can have confidence in the quality of API-licensed motor oils in the marketplace.

The process begins with sampling, and API takes a lot of samples, both in bottles and bulk. Some readers may have even been visited by an API collector in the past and, hopefully, enabled them to collect a sample or two.

Once a sample is tested to determine their physical, chemical, and performance properties, the results are compared to the formulations the licensee has filed with API during licensing. Conforming oils will show test results consistent with the formulations on file with API and meet the claimed API specifications and all EOLCS program requirements.

To confirm the oil quality, all oil samples undergo elemental analysis and testing for required properties, which include viscosity at 100°C, high-temperature/high-shear testing, cold cranking, pumpability and volatility. The oils may also be tested for foaming properties, shear stability and oxidation at regular intervals. In addition, product packages are inspected to make sure they correctly display the API Marks, comply with licensing requirements and carry product traceability codes.

If a licensed oil does not match the physical and chemical data on file, API will work with the licensee directly 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 products from the marketplace.

Counterfeit Oils Sampling in the marketplace affords another opportunity (depending on how one looks at it). When API encounters oils falsely claiming API licensing or counterfeiting the API Marks, samples are collected and tested to determine conformance with the performance level claimed. For these counterfeiting cases, API requires immediate discontinuation of the use of the API Marks and will exhaust all available options to ensure that the marketer

removes their counterfeit products from the marketplace. API maintains a list of unauthorized engine oils on our website and provides details and images to alert consumers to oils falsely claiming to be licensed by API.

Obsolete Oil It’s also important to be aware of engine oils that do not meet the most current engine oil standards - ILSAC GF-6A and ILSAC GF-6B and API SP for gasoline engines and API CK-4 and API FA-4 for diesel engines. Oils that claim to meet an older engine oil performance category that has been technically determined to be “obsolete” should never be poured into a modern day engine. Categories can become obsolete when the test methods are no longer available to verify performance, meaning unless the formulation pre-dates the test unavailability, the manufacturer could not have actually tested the oil to the claimed standard.

Be alert! There are still obsolete oil products in the marketplace, and shops should be careful in using these for older engines to avoid causing damage. The API Motor Oil Guide (google it) summarizes active and obsolete ILSAC and API performance categories. Printable copies are available at API.org.

The standards and programs established by API are continuously evaluated and updated as needed with input from OEMs, oil marketers, distributors, shop owners and other stakeholders in the industry. This helps assure shop operators that they are getting high-quality oil that will meet the needs of their customers’ engines.

New Oil Performance Categories are Coming The industry is hard at work developing the next level of performance for both diesel and gasoline engines. On the diesel side, the New Category Development Team continues to gather and analyze data in support of PC-12 as it marches onward to an anticipated October meeting where the tests will be voted upon for inclusion in the next API diesel engine oil performance category. This will be an important milestone that will enable the development of precision matrices for the included performance tests.

Meanwhile, on the gasoline side, the Auto-Oil Advisory Panel continues to meet to review the latest ILSAC proposals for the next gasoline engine oil category, collectively known as ILSAC GF-7.

If you have questions or need additional information, contact the API Engine Oil Licensing and Certification System at eolcs@api.org.

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FROM OUR PARTNERS

Your Partner Beyond Products™

Opportunity: Beyond Traditional Benefits

BY DALE SMITH, BG TRAINING PROGRAM MANAGER

The words “employee benefits” bring to mind the common offerings of most full-time employment: health, life and dental insurance, paid time off, and retirement plans.

The best benefit you could give your employees is the opportunity for career fulfillment. How to provide that boils down to these key strategies: • Offer beat-the-clock maintenance services • Training, development, and advancement opportunities • Safe and comfortable work environment • Recognition and rewards • Work–life balance

Maintenance services Offering quick, easy, and profitable maintenance services allows your employees to make the most of their time and see it reflected in their numbers.

Many maintenance services allow technicians to beat the clock and increase their earning potential. It’s not hard to see how less time and more money equals higher employee satisfaction. If that sounds good to your technicians, we recommend a few services: • Oil service • Brake service • Driveline service • Cooling System Service • Transmission Service

Developmental opportunities Give your technicians the opportunity to progress their careers by offering training, development, and chances for advancement. Encourage new educational experiences by giving them the necessary tools and equipment.

Work environment Safety is everything for a shop, including owning and maintaining quality tools and equipment, proper ventilation, and adherence to safety protocols to prevent accidents and injuries. For comfort, there are things to consider, like noise control, adequate lighting, temperature, and break and rest areas.

Address all physical, psychological, and professional needs to increase job satisfaction and productivity.

Recognition and rewards

• Performance bonuses based on productivity, efficiency, and quality of work • Skill-based pay increases tied to developmental achievements • Employee of the month or quarter accompanied by a plaque, certificate, or small gift • Public acknowledgement for achievements during team meeting and internal communications • Training and certification support, including financial assistance or time off for pursuing training and certifications • Flexible scheduling in work hours or days off as a reward for consistency in exceeding expectations • Providing a tool allowance for technicians to invest in high-quality tools • Special projects in challenging or high-profile projects that showcase a technician’s skills and dedication • Extra paid time off as a one-time reward or accumulated over time • Additional health benefits like gym memberships or wellness programs • Team celebrations to encourage camaraderie • Recognition wall of employees’ achievements • On-the-spot awards for going above and beyond, like gift cards or small tokens • Longevity recognition for completion of milestone years of service

Work–life balance You’ve probably heard all there is to hear on the subject of work–life balance, but that’s because it’s important and makes a big difference where productivity is concerned. Things that factor into a well-executed work–life balance include avoiding overtime if possible, having predictable hours, clear expectations in the workplace, and fair rotation and coverage so technicians do not have too heavy of workloads.

A healthy workplace culture contributes heavily to a healthy work–life balance. Your culture should value employees’ well-being by having transparent communication, recognition of efforts, career growth planning, and having a pool of cross-trained technicians to distribute workload.

Final thought True opportunity in employee benefits lies in creating an environment where individuals can find fulfillment in their careers. By implementing these strategies, employers can not only attract top talent but also retain and motivate their workforce, ultimately leading to a more productive shop.

Regardless of job title, being rewarded for your hard work feels good. There are many different ways to show recognition: OCTOBER 2023 45

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Know Your Competition— So You Can Compete More Effectively

BY BILL BEYERLE, ERIC MONTANYE AND ANGI SCHOOLCRAFT

Consumers have a lot of choices when it comes to their oil changes. They by customers, both positive and negative, should be responded to quickcan go to a car dealer, or even a tire or muffler chain store. So why do ly. This can allow you to manage the optics of the review. If you use social they choose a quick lube shop? And more importantly, why should they media, make sure your postings are fresh. choose your shop?

When customers arrive at your shop, first impressions are everything.

People who go to a fast oil change specialist are looking for conveThe exterior and signage should be clean and well-kept. The reception nience and speed. They know they don’t need to make an appointment or and waiting areas should be welcoming. Employees who are friendly, courhave other work performed. The oil change is their main objective. They teous and knowledgeable will go a long way toward instilling trust and appreciate that you have a variety of oils and quality grades available, and confidence on the customer’s part. Make sure your staff is trained in the that your techs are focused on doing the job right. Tire or importance of customer service, so customers feel they muffler businesses make their money from selling tires or are treated well and in good hands. Make sure to greet mufflers. They may perform oil changes as a secondary all customers as they arrive so they know they will be “Know your service, but it is not their specialty. taken care of. competition” It’s important to understand this because, as a quick As a specialist in oil products and services, be sure you are doesn’t just mean lube operator, you are not in competition with dealershowcasing your expertise. Talk with customers about their ships, tire or muffler stores. Your competition is other oil oil choices. Most of them probably don’t give much thought knowing who service specialists with a similar offering and business to their oil, so they will appreciate your expert guidance as they are, but also model to yours. That’s who you should be watching and to what is best for their car. Follow up with customers after having a good benchmarking your business against. their visit as well. Don’t hesitate to ask for their feedback on sense of how they “Know your competition” doesn’t just mean knowing your service. Not only can it help you identify areas for imwho they are, but also having a good sense of how they provement, but it will also make the customer feel valued. operate.” operate. How are they pricing their services compared to Identify your strengths and weaknesses compared to you? Are they visible in the local media or at community others in your market and capitalize on your strengths. On events? What do their websites say about them? Are they associated with the surface, your business might not appear very different from your comany particular oil brands? Can you get any insight into their promotional petitors, but there are many levers you can pull to distinguish yourself. A practices? What do their facilities look like? Is their signage clean and modhigh-quality customer experience can be a big differentiator, and it can ern? What are their customers saying about them? protect you from having to compete on price.

Gathering a little competitive intelligence will help you figure out how to better differentiate your offering from the competition. When two busiBill Beyerle has been with Chevron Lubricants for more than 25 years and nesses offer fairly similar products and services and are not too far apart in is currently the Automotive Installed Sales Manager. You can reach him at terms of price, the biggest differentiator may well be your brand – meanBillBeyerle@chevron.com. ing the experience customers have and the impressions they form when Eric Montanye has been with Chevron for 5 years and has over 20 years of doing business with you. experience in the Lubricants and Automotive Market. You can reach him at Your brand is the sum of all the factors that influence the customer’s imericmontanye@chevron.com. pression of you. It starts before they even come to your store. If they are Angi Schoolcraft has been with Chevron Lubricants for more than 19 years and searching online, your web presence should be reflective of the profesis currently the lead marketing specialist supporting Havoline®, Havoline xpress sional image you want to project. Your website should be well-functioning, lube®, Chevron xpress lube® and Techron®. You can reach her at angi.schoolinformative and easy to navigate. Keep up with reviews of your business craft@chevron.com. and be sure to address any issues that are less than “five stars.” Reviews 46 NOLN.NET

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High-Mileage Is High-Margin

BY JAY LITSEY

Looking for ways to keep building average ticket? Want to right-sell consumers instead of up-selling them? Let’s talk about the upside from addressing the insight that most cars are old.

Most Cars Are Old Many factors are converging to make the perfect storm for making more money. The high price of new cars and “new to you” used cars is driving vehicle repair and retention. That traffic should be yours!

Car dealerships get first crack at electric vehicles (EVs). With internal combustion engine (ICE) vehicles still 95% of U.S. Car Parc of 288M units (two-thirds of which are more than five years old, and 144M of which are more than 12 years old), serving this community can become your sweet spot. The industry likes to talk about new cars and the advent of EVs, but have no fear. With two-thirds more than 75,000 miles, there’s a huge high-mileage vehicle opportunity near 193 million vehicles. These vehicles tend to have additional performance problems due to increased carbon deposits, wear, and shrinking or cracked seals. This can cause: • Excess emissions and smoking.

• Severely reduced gas mileage and acceleration.

• Hesitation and hard-starting.

Consumers are aware of the problems, and they look for built-for-purpose solutions to these challenges. You can be their trusted advisor. If data estimates from Kline prove out, it could take 20 years for half of the current registrations to leave the car parc. Therefore, you are in good shape for a while.

is now $515, up $118 from 2020. Black Book® reports that the average amount financed jumped from $21,362 in 2020 to $28,534 in 2022. Loan contract length has high growth in the 73-month to 84-month loan area, almost seven years to pay a vehicle off! The average used-car loan is now 68 months. That’s bad for consumers building equity, but it’s a good opportunity for you to help them keep those cars going over the entire life cycle. If your lubricant supplier has incentives and consumer promotions for both newer and older vehicles, then take advantage of them. If not, it’s time to shop around!

Think Lifetime Value of Your Customers Black Book® says that the lifetime value of a customer to an automobile dealership exceeds $50,000. What is the value of that customer to you?

The next time you have a moment eating lunch or having a cup of coffee, do some quick “Jethro Math” on the nearest napkin based on retaining an average customer from age 20 to 70 or 50 years of maintenance and service. Take your current average ticket value and increase it a bit. Do the same thing for your average store visits per year. If you plan on selling more than an oil change each time, try $100 for the average ticket. For visits per year, use three. A cost of $300 per year for 50 years is $15,000 in revenue. If you gross one-third, you keep $5,000 per customer. If you could keep a steady average of 10,000 oil changes a year from 3,300 customers for 50 years, you yield around $16,500,000 potential gross profit. Complete 100% retention is difficult, but ask your lubricant vendor for programs that can help.

Right-Selling Versus Up-Selling High-Mileage Synthetic and Fuel-System Cleaners Opportunity Are two-thirds of your oil changes using high-margin, high-mileage synthetics? Over the past two years, the Premium FSHM segment grew more than 79% on the retail side. The case could be the same for you!

The average U.S. family has 2.2 cars. Capture the “family fleet” with savvy marketing ideas.

Are you pairing high-mileage oil with a high-mileage fuel-system cleaner for a higher ring “rejuvenation occasion” package? Think how fitting that could be for spring, summer, fall and winter: four retention opportunities per year! Does your lubricant supplier offer such consumer offers? If not, find one that does to help share your promotional costs.

Some people use the term up-selling, but nothing is more annoying than forced up-selling. What consumers are fine with is if someone takes the time to find out about their complete needs and then offers solutions. Others call this right-selling, which is preferable. Right-sell high-mileage owners with high-mileage synthetics and fuel-system cleaning products. It’ll be transformational.

Ask your lubricant and performance chemicals provider today what marketing tools and training they have available to bring these ideas to life. If they aren’t offering help to drive traffic, average ticket, more profitable oil changes and ancillary services tools every quarter, it’s time to shop around!

The automotive aftermarket for high-mileage ICE vehicles will be healthy for many years, so get your piece of the action today!

Promote and Help America Stay on the Road to Happiness Consumers, new car dealers and used car dealers lament the cost of used cars these days. Cars at auction are almost double what they were just a few years ago. Used Car Dealer Magazine recently shared that almost 62 percent of vehicles financed were “used.” The average used-car payment

Jay Litsey is the Senior Channel Marketing Director for Calumet Specialty Products, which is the proud owner of the Royal Purple® and Bel-Ray® brands. He has been in aftermarket sales and marketing for more than 25 years. Jay can be contacted via james.litsey@clmt.com.

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The Value of Listening

BY AMBER KOSSAK, CEO OF SOLID START

A vital component in life is having good communication skills. If we have poor communication, it can cause tension, mistrust, misunderstandings, frustration, and strained relationships. However, good communication is fundamental in having effective outcomes, both inside and outside the workplace.

Though we can obtain more effective results by improving both our speaking and listening skills, I am going to focus on listening.

In business, when managers are poor listeners, it undermines a team’s morale. It makes them feel that managers don’t care about them. When a staff member is a poor listener, it can undermine a manager’s confidence in the team. In short, listening is an essential skill to master in whatever role you play.

Listening is not as easy as it may seem. In the late 1950s psychologist Carl Rogers coined the term “active listening” rather than locking on to the words being spoken, we need to use our perception and try to understand the other person’s point of view. Therefore; “active listening” involves intentional focus and undivided attention, which is not easy today.

Whether we are the one speaking or listening, there can be a variety of barriers with communication. First, we might have our own inner distractions, a meeting at work, a deadline, or family life. We may even be distracted by our internal thoughts: “Where is this conversation going? Is this really important? I have a lot to do!”

feel? How do our employees feel? Listening helps affirm another person’s value. It shows respect. Being a good listener builds trust and helps the other person feel more comfortable knowing that you understand.

REMEMBER: “Listen with the intent to understand, not the intent to reply”

With customers, it is important to always strive to make them feel that you are on their side. You can do this by listening, building trust, lowering their anxiety. We all know this but it is a good reminder, make your customer happen and you will have a customer for life.

In many conversations there may be no listening at all as everyone thinks about what they are planning to say next. Think about this, when we take the time, little to no distractions and demonstrate “active listening”, we are helping the other person. Be kind! You might not know what the other person is going through.

Listening has benefits for our customers – creating a value & respect!

Sometimes non-verbal facial expressions or body language can interfere with the message being communicated. Are you portraying with your facial expression or body language a closed-door policy? Communication comes in all forms. If we do not show we are ready to listen, how do our customers

Failure to listen can have unintended consequences!

Listening is key to understanding. This is why good listeners make better decisions. What’s more, people have respect for you when you are an “active listener”. Remember it creates value.

Practical Tips • Be aware of your non-verbal communication. (Distractions) This could be looking repeatedly at your phone or computer monitor while engaged in conversation. Don’t do it.

• Seek clarification of what the other person is trying to say.

Ask questions if necessary, never assume you understand. If you are receiving direction, make sure you understand the end goal.

Confirm what you’ve heard by relating in your own words how you understood the conversation. It’s like a handshake. This will lower the anxiety level when both parties feel affirmed and on the same page.

• This is a big one. Train yourself to not emotionally engage or respond until you fully understand what is being said. Also, make sure you withhold judgment until all your questions have been answered.

We mentioned communication as being a vital part in life. Without listening you cannot truly communicate. Of course we can get through life without being a good listener but if we want to be better than we were yesterday then we need to “Listen with the intent to understand, not the intent to reply”.

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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Navigating Changes to State Safety Inspections Making operational adjustments and staying connected with customers is key

BY SIDNEY L., TRADE MARKETING MANAGER, VALVOLINE INC.

Beginning January 2025, cars registered in the state of Texas will no longer While the automotive aftermarket will continue to be a competitive be required to pass a safety inspection. Texas is one of 13 states that manspace, one of the most important things that will keep cars coming to dates annual safety inspection for cars, but this has changed with the final apyour shop is customer service. “It’s all about the customer experience,” proval of House Bill 3297. While emissions testing will continue to be required said Clayton. “The operations coaching, training, and marketing, profor drivers in major metropolitan areas of Texas, the main safety inspection vided by our Express Care platform allows operators to remain indepenprogram will dissolve in 2025. dent, but benefit from practices they might not receive elsewhere. Owners Texas State Inspection Association (TSIA) Executive Director, Brandi Bird, looking for ways to combat the changes brought on by the passing of discusses recent changes to the legislation and her work since 2017 to keep HB 3297 should look into programs where training and marketing assissafety inspections routine for Texas drivers. TSIA was created in 1995 to fight tance are offered.” for station owners and the safety of Texas drivers. They continue diligence “For those owners in the Valvoline Express Care program who have dedineeded to keep and improve state safety inspection. cated safety inspection bays without a pit, we’re brainstorm“(TSIA) ensured there were points of order called on the ing how to utilize the space, such as additional services,” said bill in the House at two different steps in the process,” said Clayton. “It’s a challenge, but we’re developing ways to help Many quick lube Bird. “This is something we’ve been fighting for over 6 years, them maximize productivity and profit.” owners in Texas and we’ve been successful in defeating it every session. This On the other hand, those shops without dedicated inrely on safety time, it had a momentum that it did not last session.” TSIA spection lanes might see this as an improvement in operainspections to was able to add an amendment that delayed implementations. Valvoline Instant Oil Change’s, Kyle McMahon, VP of some extent to tion from September 1, 2023, to January 1, 2025. “This gives Operations – West Region, comments on the operational maintain business the industry time to adjust. In the safety only counties, this impact safety testing could have on a quick lube. “The goal gives locations the ability to make smart business decisions is always to keep our guests safe and prevent costly breakprofitability and and adjust operations in order to implement these changes downs through our core business, which is oil changes and keep customers come January 1 of 2025,” Bird expressed. preventative maintenance. (Valvoline) will continue to recsafe.

The current focus of TSIA where large supporters and ommend necessary services and carry out our 18-point members, such as Valvoline Inc., can have the biggest imsafety inspection that keeps our drivers ready for whatever pact is raising concern around the emissions inspection fee. In January 2025, the road ahead brings,” said McMahon.

Inspection fees will decrease to $18.50 in DFW and Houston, and $11.50 in When operators and managers create the weekly schedule, they may Austin and El Paso due to the loss of the safety inspection fee, in conjuncstruggle with keeping a dedicated safety inspection personnel in the shop. tion with the emissions inspection fee (Texas State Inspection Association, “Sometimes, inspectors are the most experienced team members,” ex2023). TSIA is working diligently to increase this fee as inflation and the cost plained McMahon. “Taking them out of a bay and away from the core busiof labor rise. “We are diligently working to raise those fees statewide,” added ness to perform safety inspections could take 25 minutes or longer, deBird. “The current fees are well below market rate, especially when you facpending on the time of day. Some days, operators could have 40% of their tor in your actual cost and time spent to perform the emissions inspection.” business tied up by inspections.”

Many quick lube owners in Texas rely on safety inspections to some exWith the passing of House bill 3297, Texas operators may worry about tent to maintain business profitability and keep customers safe. Joe Clayton, the health of their business. By taking necessary steps during this transition Valvoline Express Care General Manager, discusses how operators can be period to prepare their business and operations, operators will be ready proactive in their business planning before these changes take place. “Take when the safety inspection changes take place. If operators are struggling advantage of this time to gather your customer’s basic information such as with customer acquisition or retention, look to join a program that offers name, physical address, email, and telephone number,” Clayton emphasized. training and marketing assistance, such as Valvoline Express Care. If owners “It’s important to begin building a database so you can reach the safety inhave decided it’s time to exit the business, look for partners like Valvoline, spection only with oil change and service marketing even when they are not who will offer a transparent business valuation and efficient closing to alvisiting for inspections as frequently.” low owner/operator time to pursue their other priorities.

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LEADING EDGE

You Need Help

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

50

I’VE BEEN TOLD BEFORE THAT I NEED HELP BY many people. I usually dismiss the ones from the ex-girlfriends—what do they know? I got frustrated when my supervisors would say it, and why not? You can find them right in the same group in your heart as the ex-girlfriend group.

Even the hopefully future Mrs. has said something close to the same lines. Some of the braver and more forward employees have also mustered up the courage to tell their bosses that their leader is not performing as they should. In reality, three of the four groups above actually want to help and want you to succeed. Let’s admit here that your group of three might not be the same as mine.

The wall that people hit when they tell me they want to help me is me. I am a man! And by my birthright, we must place all assignments, success, failure, trials, and tributes on our shoulders and deliver time and time again. We go to the plate for our beliefs and family battered, broken, and yet victorious until our dying breath feeds us our final regrets as the light goes dark.

As my heart hardens from failures, lessons learned, and deep-fried goodness, my wisdom broadens to deliver inherited phrases such as, “If you want to have it done right, you have to do it yourself!” Plus, “No one wants to help, they are too busy with their own lives.”

And then there is the granddaddy of them all, the one that seals our membership in the bitter old man club faster than realizing the belt line may indeed be at the belly button: “Kids today just don’t want to work!” I remember growing up and talking to the grey-headed captains of our manhood as they did their best to dismiss our success as luck or not knowing what life is really about.

I cannot speak too deeply on the ability to incorporate lowering the shield in your personal relationships. I personally have had more success in failing in love than falling in love. Some say that knowing how to fail is just as important as knowing how to succeed, so I will just give this one piece of advice: Your relationship is more than taking someone into your life. Your relationship is the power of two people committed to helping

each other. If you are not willing to let your partner help, you are telling them they are not as valued in the partnership as you are.

Business is a lot less deep to discuss. We can usually take the deep feels out of the process and allow us to put our leadership hat on. I hope you are lucky enough to have a teammate come up to you and tell you that you need help. This person is not only right (we all need help) but they also have the vision to see deficiencies and the fortitude to walk up to you and pull the elephant to the middle of the room. If there is anyone in the world I want to see succeed, it is that person right there.

In a way, someone saying you need help may be a great time to look at your delegation skills. This is the skill that takes some load off your shoulders while developing others to become better themselves. Your delegation skills are just as essential in team building as your ability to interview and attract talent.

After all, you can hire an all-star, but if you put them on the bench for too long, they will find a new team that can use their talents. I have written various articles that you can use to refine your skills in NOLN. Just keyword search “delegation” along with my name.

One key thing to realize about delegation is that it assigns duties to others for a task you are ultimately responsible for. Not too long ago, my house was in need of some drywall work after a hurricane. The drywall company did a very poor job of finishing the job. When I confronted the boss about the issue, he stated he had floated the wall perfectly but one of his workers over-sanded his part.

This discussion of course was well after they painted the wall for all the joint lines to show. This boss felt it was ok to place blame on the employee (to the customer) even though it was his job to make sure it was right (and his employee was trained). This led to the dismissal of the company from my house unpaid. Remember when you are talking to the guest or the one expecting the results, you delegate to grow and lessen the load.

But ultimately, it’s your name on that service.

PHOTO COURTESY LENNY SAUCIER

A little support goes a long way

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