RECESSION-PROOFING YOUR SHOP

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Making the Impact

Dennis McCarron shares industry insight on how to protect your business

BY KACEY FREDERICK

SINCE THE PANDEMIC, AMERICANS have feared another recession on the horizon. Dennis McCarron, a partner at an automotive brokerage called Cardinal Brokers, spoke to NOLN about what a recession would mean to shops and how shop owners should respond.

It’s assumed that the auto industry in general tends to be resistant to economic downturns, as most consumers will always need transportation.

“When the economy goes down and people pull back on their spending, they still have to go to work, they still have to pick up their kids: they still need a mode of transportation,” McCarron says.

With a lack of adequate public transit and a long-standing “love affair with independent transportation,” as McCarron puts it, most Americans will not, or cannot, choose to give up their vehicle. This also means people hold onto vehicles for longer amounts of time, resulting in more repairs needed and profit for auto shops.

Though the auto industry remains an essential service for most people, shop owners will still see the effects of a recession with more people skipping out on maintenance.

How Customers Respond to Recessions

Most people do not budget for automotive repairs and maintenance in the United States, McCarron points out.

It’s typically something that comes out of emergency funds or money stowed away for vacations or other nice things.

In the case of a recession, as the cost of everyday essentials increases, people are not as willing to pay for maintenance if they feel it isn’t urgent. Businesses will see their average repair orders decrease as people put off minor maintenance due to financial issues, resulting in less profit for shops.

Caring for Financially Concerned Customers

There are things that shops can do to help themselves before a recession hits: they must take care of their customers.

“You have to develop a reputation as an honest, dependable, reliable business [so that] people will feel comfortable coming to you even when money is tight,” McCarron states.

McCarron says that one of the best things someone could say about a business is, “they’re expensive, but…” The worst thing a business could hear from the customers is “every time I come in here, it’s a thousand dollars.”

“To someone not in the industry those two things may sound like they’re the same type of sentence, but they’re not,” McCarron says. “One is representative of ‘that business charges a lot of money, but they always do good work.’ The latter is a representation of very aggressive over-selling: trying to force sales onto a customer.”

And that is the worst thing a shop can do: become pushy with customers. McCarron says it’s “never a good thing for a shop to do.”

The job of a shop is to inform the customer of the state of their vehicle. They need to decide from that point. Shops must know how to accept “no” as an answer and not let a potential rejection stop them from telling the customer about issues with their vehicle.

“My job is to help keep you informed and then educate you on how to properly maintain this vehicle, but I’ll never cross that line and tell you things like ‘you have to do this,’ or use safety as a weapon,” he warns.

Shops must make their customers feel they are in control. Interactions cannot simply be transactional. The biggest way to gain attention is through word of mouth, which is why taking care of existing customers is essential.

There are more initiative shops can take on their end to attract new customers, too. Getting involved with the local community will spread the business’ name and associate it with being a positive influence.

McCarron has plenty of ideas for such involvement, such as local community projects like Girl Scouts, Boy Scouts, [events with] the town, maybe a church or a synagogue—any kind of local grassroots event. Doing a car care clinic, teaching people how to change a flat tire on the side of the road.

“I think you need to get involved and just make people aware that you exist,” he adds.

Don’t Lower Your Standard

If shops are confident that they are offering quality service at a fair price, they shouldn’t be concerned with cutting their prices and should especially not consider cutting valuable technicians. Doing so would be “cutting off your nose to spite your face,” McCarron says.

Instead, they should focus on maximizing efficiency and productivity. Systematizing and finding the rhythm of the shop, as McCarron describes it, helps move business along faster, such as telling customers specific pick-up times instead of vague phrases like “end of the day.”

When people come in, shops should interview the customer. When they bring a vehicle in and they’re asked questions about the problem, if it’s a problem that the shop is not equipped to resolve, they can avoid wasting valuable time looking at a vehicle that they can’t even work on.

Systematizing the process, community involvement, and customer outreach: these factors can help a shop establish a growing customer base, even if times are rough–because people will always need cars fixed. Remind your community you’re there to take care of them and have systems in place to ensure every customer is satisfied.

Reladyne Acquires Allied Oil

Lubricant supplier RelaDyne has announced the acquisition of Allied Oil, according to a press release.

Allied Oil is a provider of “lubricant and DEF solutions and industrial reliability services” in the Midwest. It was founded in 1958 in Omaha, Nebraska. The company has served “Transport, Industrial, and Consumer businesses” for 60 years.

The company is run from seven distribution centers in six states and services 11 states in the northern Midwest and is considered Shell’s top distributor. The acquisition will offer RelaDyne a greater presence in the Midwest region.

“The acquisition of Allied Oil is extremely impactful as we continue our strategic expansion in the heartland of America,” stated David Schumacher, RelaDyne’s chief strategy and operating officer. “Allied Oil’s focus in the commercial and industrial segments combined with RelaDyne’s commercial sector and RelaDyne Reliability Services’ expertise are highly synergistic for our current and future customers.”

Allied Oil President Steve Phillips is also satisfied with the acquisition and believes that the two companies have much to offer the other.

“RelaDyne’s geographic impact in the commercial and industrial sectors fully align and complement our existing reach in these segments, aiding in the diversification of products and services offered to our existing and future customers,” Phillips said.

JIFFY LUBE GAINS LAFAYETTE, GEORGIA LOCATION

Chattanooga Times Free Press reported that Fountain Plaza Lube in Lafayette, Georgia has become one of the newest Jiffy Lube locations.

The shop located at 1890 N. Main Street will be owned by Stonebriar Auto Services LLC, a Jiffy Lube franchisee that owns 80 of Jiffy Lube’s over 2,000 franchised locations.

Stonebriar Executive Vice President Steve Isom said the company is looking forward to expanding its presence in the state.

“We are excited about our growth in Georgia and the opening of this location in Lafayette,” Isom stated. “We hope the community will stop in and experience the fastest and friendliest service in town.”

FAST EDDIE’S CAR WASH AND OIL CHANGE OPENS 17TH LOCATION

Fast Eddie’s Car Wash and Oil Change opened its newest location in Fenton, Michigan, as reported by TC Times.

The Fenton store will be Fast Eddie’s 17th location and is located at 1161 N. LeRoy St.

A grand opening ceremony was held on March 21, where a ribbon cutting was conducted. Fast Eddie’s Vice President of Operations Matt Letavis was present and “thanked the community for their support.”

Alongside Letavis and his family, also attending were the Fenton & Linden Regional Chamber of Commerce and local families and friends in the community.

Tesla Recalls 35 Electric Semi Trucks

Tesla has announced the first recall pertaining to their electric semi trucks, Electrek reports.

According to the announcement on the National Highway Traffic Safety Administration’s (NHTSA) recall website, the recall covers 35 trucks and is a result of a parking brake issue.

Air leakage can potentially cause the electronic parking brake module to not engage, without anything to make the driver aware it’s happened. The failure of the brake to engage can result in “a rollaway incident when the driver releases the service brake.”

Bendix Commercial Vehicle Systems, the supplier of the affected units, identified the issue in early February to Tesla. After an investigation throughout the following month, the automaker determined the issue stemmed from 35 “Intellipark Valve Modules” produced by Bendix. That same part has also been identified as the cause for other recalls, “affecting a total of 836 units, including non-Tesla brands.”

The Tesla semis with these units were produced “between November 30, 2022, and February 28, 2023.” Trucks produced since March 14 have been built with units that have “better internals to prevent air leakage.”

Owners of affected trucks will begin recieving letters from Tesla on May 23. The automaker intends to have every affected truck repaired with the improved part.

Wisconsin Take 5 Oil Change Celebrates Grand Opening

A new Take 5 Oil Change in West Haven, Connecticut celebrated its grand opening in March, as reported by Patch.

Present at the event were West Haven Mayor Nancy R. Rossi, city council members, and other local leaders.

Mayor Rossi assisted the new store’s director of operations, Frank Buffone, in cutting the ceremonial ribbon at the grand opening event.

The new location sits at 1083 Boston Post Road, located in West Haven’s Al - lingtown neighborhood along the area’s “bustling Route 1 corridor.”

The business is owned by brothers Adam and Jeff Kimberly, who were also present at the grand opening ceremony.

Costa Oil Opens New Locations In North And South Carolina

Quick lube oil change franchise

Costa Oil has opened new locations in North Carolina and South Carolina, Digital Journal reports.

Two new locations have been opened: one is located in Charlotte, North Carolina, and the second is in Rock Hill, South Carolina. The shops offer a “wide variety of oils” for customers coming through the drive-thru oil change, with a satisfaction guarantee promised for all services.

Owner Mike O’Connor said that the company aims to “make our customers feel welcome” and recognizes “how important it is to be able to get an oil change quickly and without hassle.”

“We are excited to bring our convenient oil change services to Charlotte and Rock Hill,” Co-owner Matt Wood stated. “Our goal is for every customer who visits us to experience fast, friendly service at an affordable price.”

Hyundai

Vehicles

Hyundai and Kia are recalling over 571,000 vehicles due to the tow hitch harnesses catching fire, AP News reports.

Hyundai has recalled “the 2019 to 2023 Santa Fe, the 2021 to 2023 Santa Fe Hybrid, the 2022 and 2023 Santa Fe Plug-in hybrid and the 2022 and 2023 Santa Cruz.” Only one Kia vehicle was recalled: 2022 and 2023 Carnival minivans.

The cars were equipped with tow hitch harnesses “that came as original equipment or were installed by dealers.” According to documents from U.S. federal safety regulators, water is prone to enter inside “a circuit board on the hitches,” causing a short circuit, regardless of if the vehicle is on or not.

Hyundai has reported one incident of a fire and five that resulted in heat damage, with no injuries occurring. Kia has not reported any injuries or fires. Vehicle owners are being advised to park the cars outside and away from structures.

The solution will be to have dealers “remove the fuse and tow hitch computer module” until a repair is available. Later on, a new fuse and wire extension with a waterproof connector will be installed. Owners of affected vehicles will begin to receive more information from the manufacturer starting May 16.

Savant Group Appoints Brian Miller As Coo

The Savant Group has announced Brian Miller as the company’s new chief operating officer, according to a press release.

Miller brings training in “six sigma and lean product and process improvement principles” as well as experience with business management, specifically pertaining to “manufacturing, supply chain, procurement, operations, sales, and IT.” He graduated from Central Michigan University with a bachelor’s in business administration, specializing in Sales and Marketing and Logistics Management. Before joining the Savant Group, Miller owned a consulting firm that assisted businesses with their processes, taking care of employees and customers, and growing their business.

“With the addition of his [Miller’s] expertise, we’re poised to accomplish even greater success as we continue to grow our business and improve systems and processes that put our people and customers first,” Savant Group President Rebecca Cox stated.

Putting people and customers first is part of why Miller is “honored” about his new position with the company.

“Together we have a symbiotic relationship that combines the best knowledge in the industry with standardization and digital processes that will take the Savant Group into the future,” Miller said.

FORD RECALLS 22K F-150 TRUCKS

Ford announced a recall of around 222,000 vehicles due to windshield wiper arms breaking while in use, Kelley Blue Book reports.

The recall applies to 2021 F-150 pickups. The reason given by the manufacturer to federal safety regulators was that “worn wiper arm spline tooling core inserts at the supplier resulted in insufficient spline tooth height.”

In simpler terms, the windshield wiper arms on the trucks are prone to snapping, which can pose safety risks for drivers in rainy weather.

Ford’s resolution is for dealers to inspect the windshield wipers on recalled vehicles and perform replacements, if necessary, at no cost to drivers.

West Virginia Changes Vehicle Inspections

West Virginia has officially decided to change state vehicle inspections to being bi-yearly instead of yearly, WBOY 12 News reports.

House Bill 2310 will reduce state vehicle inspections to every other year, as opposed to every year. Additionally, it increases the price of inspections from $14 to $19, though an overall cost saving is argued due to having to pay for fewer inspections.

The bill was signed by West Virginia Governor Jim Justice on March 6. It was first introduced in the West Virginia House of Delegates this past January by Delegate Gary Howell.

The bill underwent “several amendments” throughout both the House and Senate, even sparking some debate. It was passed on March 6.