Ignition Magazine Australia | May 2022

MARCH MAY 2022 2021

FUTURE RIDE FERRARI 296 GTB DH

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...about Capricorn and earn 10,000 Bonus Points MOBILE MECHANICS BEING TARGETED BY BURGLARS Protect your businesses and property

INCREASE PRODUCTIVITY Maximise your tax deductions this EOFY with Capricorn Finance

HOW TO FORECAST YOUR PROFIT And make sure you achieve it

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GI S PE TR N AT SO IO O NS N

Capricorn DINNER & TRADESHOW

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12 T H NOVEM BER 2 02 2 MELBOU R NE CONVENTION AND EXH IBIT ION C E N TR E (D ISPLAY) AND C R OWN M ELBOU R NE (DIN N E R )

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CONTENTS MAY 2022

David Fraser Group CEO

CEO’s message

Are you making the most of your finances? With the end of the financial year just around the corner here in Australia, it’s a good time to take a close look at your financial situation — not just to make sure you’re complying with Tax Office requirements in submitting a return, but to make sure your business is as financially healthy and as efficient as possible. Let’s start with the tax return, though. Are you maximising it?

Know what items you may be able to claim as a deduction, make sure you’ve met your superannuation requirements, understand how government initiatives like JobKeeper might impact your tax situation, and write off any bad debts.

(According to a recent report by Westpac, if you’ve paid GST on an accrual basis, you can claim back the tax you’ve already paid on a bad debt. That’s worth looking into, if you’re affected.)

Don’t forget, eligible businesses with turnover up to $5 billion may be able to write off the entire cost of eligible new assets, and those with up to $50 million in annual turnover are also potentially able to fully expense eligible secondhand assets.

But don’t just stop looking at your accounts once you’ve completed your statutory requirements to the Tax Office. While you’ve got your books open, it’s a great opportunity for a general financial health check. How are you tracking against your short-term and long-term money plan and other business goals?

Do you have enough funds in reserve to pay for emergencies or planned improvements? Are you covering your overheads? Are you optimising your margins on parts? Are you operating efficiently? What changes could you introduce that could revolutionise your business and the state of your accounts?

There is plenty that can be done.

It was pleasing to see in last year’s State of the Nation report, for example, that more Members are now measuring their efficiency using software. It’s leading to better service time estimates, and greater profit margins. Adopting this kind of technology is a huge driver of productivity gains for small businesses. Could it be exactly what your workshop needs?

You don’t have to be a financial whiz-kid to succeed in business, but it never hurts to know how to manage your money better. A basic understanding of the key concepts of financial accounting can help you improve your business. If you don’t have that already, there are a lot of resources available, so don’t be frightened to ask for help if you need it.

No-one ever regretted discovering new ways to make the most of their finances.

Tax time is as good a time as any for a financial check-up.

Yours in cooperation,

David Fraser Group CEO

4 Looking To Contribute To The Automotive Industry?Become a Capricorn Director

5 Protect Your

Business Mobile Mechanics being targeted by burglars

6 Office Time 8 Ferrari’s Fun First V6 10 The World’s Most Make your office

time more enjoyable with Capricorn Rewards

Outperforming its big brothers

Dedicated Motor Racing Club Philip Island Auto Racing Club

12 Hyundai Unveils Strategic Road Map

Accelerating it’s electrification ambition

14 A Valuable Asset 16 Are Your Customer Databases with TaTBiz

Customers Talking About You? How to get reviews!

18 Preying on Small

Businesses Protect yourself against cybercriminals

19 How to Forecast Your Profit

(and make sure you

achieve it)

20 Preparing for

2030 The importance of your future!

22 What Your

Turnover Says About Your Happiness

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 3

NEWS

CALENDAR of events Western Australia

Queensland

National

GERALDTON MEMBER NIGHT 18th May 2022 BUNBURY MEMBER NIGHT 2nd June 2022 FUTURES COLLIDE II 16th August 2022

TOWNSVILLE TRADESHOW 18th May 2022 FUTURES COLLIDE II 19th to 20th August 2022

ANNUAL GALA DINNERS AND TRADESHOW Launching Soon

Login to capricorn.coop today and select Events to register your attendance. For further information please call our Events team on 1800 327 437 or email events@capricorn.coop

Calling Members in Western Australia and Queensland

Looking to contribute to the automotive industry? Interested in governing one of the largest automotive Member-owned organisations? Become a Capricorn Director.

Capricorn will be looking for energetic and passionate members to join our board of directors. In 2022, director elections will be held for directors in Western Australia and Queensland.

To be eligible as a candidate in the 2022 director elections you need to satisfy all of the following criteria:

Capricorn is a member-based organisation and Member representation on the board helps ensure Members’ interests are safeguarded. Member Directors use their skills, knowledge and expertise in the industry to help ensure Capricorn is delivering for Members, reflecting Members’ interests and living up to Capricorn’s promises and values.

• •

Being a director is a demanding and challenging role. It carries with it a great deal of ethical and legal responsibility. Seeking to become a director of Capricorn, however, is one of the most important contributions you can make to Capricorn.

•

4 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

•

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•

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be a Member in either of the WA or QLD zones; hold 2,000 or more shares in Capricorn; be involved in a trading automotive or allied business in either of the WA or QLD zones; demonstrate a high level of commitment to Capricorn based on purchases using your Capricorn account; be of good standing; both within Capricorn and the wider community; not be a wholesale supplier to any automotive or allied business; and not have any actual or potential conflict of interest that will create a material risk to the board or your capacity to properly perform your duties.

All eligible Members in both the WA and QLD zones will receive an email inviting them to nominate as a director candidate and providing them with details about the process.

As a Member, your participation in the election process (as a voter or a candidate), is one of the most important contributions you can make to Capricorn.

TM

Mobile mechanics being targeted by burglars

“Don’t forget, once things get stolen from a vehicle through forcible entry, the business is basically at a standstill until everything can be repaired and replaced.”

“A small business cannot incur a loss like that,” Rob said.

Rob encourages all Members with mobile workshops to create a thorough inventory.

“Do a checklist of the things you have — the tools, the fixtures and fittings — to work out exactly what you’ve got and then talk to your Risk Account Manager about your protection,” he said.

“I know some people can become a little bit disillusioned about adding an extra $10,000 worth of equipment onto their coverage, thinking it will cost them an arm and a leg.

“In actual fact, it might be nominal amount.

You might be looking at a few hundred dollars difference across 12 months. That’s less than a cup of coffee a day.”

He said creating a checklist is also important if Members haven’t updated their protection recently.

Mobile mechanics are being urged to protect their businesses and property, as new figures reveal they are being targeted by burglars.

Capricorn Risk Services Sales Manager for New South Wales and the Australian Capital Territory, Rob Sedkey, said it makes sense thieves would view mobile mechanic vans as rich targets.

“Generally, they’re jam-packed with tools and equipment,” Rob said. “The thieves go for the big-ticket items, things like scan tools and held held tools, EFTPOS machines, laptops — things they can potentially flog off. We have found that they don’t tend to go for everyday tools, like spanners.”

While many Members likely take obvious precautions — like taking expensive equipment out of their vans at the end of the day and garaging their vehicles overnight rather than leaving them parked in the driveway of their home — Rob warned that burglaries no longer occur just in the middle of the night.

“Thieves operate during the day and they will commit their crimes in plain sight,” he said.

“As your business grows, so should your business protection,” he said. That goes for general property, public liability and commercial vehicle protection, too — all of which may be impacted by a claim. Rob also urges Members to consider business interruption protection, as theft from a mobile workshop could easily take a Member off the road for weeks.

Capricorn Members receive Rewards Points on their protection through Capricorn Risk Services. Additionally, because Capricorn Mutual is a mutual, Capricorn Mutual Members may be able to save on fees and levies charged by traditional insurers.

To check your coverage or to find out more, talk to your Capricorn Risk Services Risk Account Manager.

“We have found many instances, where they’ll smash a window and just grab what they want. They’ll even follow you. In saying that, I don’t want to cause worry. But, ultimately, it’s important that anyone with a mobile workshop protects their business properly.

Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Program Terms and Conditions which can be found via the Capricorn website.

Contact Capricorn Risk Services 1800 007 022 I info@capricornrisk.com I capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).

Make your office time more enjoyable

OFFIC TIME E

With EOFY around the corner, you’ll be spending more time in your office. Use your Capricorn Rewards points to make this time go quicker by upgrading the equipment you frequently use or investing in something that could make your time in the office more enjoyable.

You could save time by using your points to purchase a new iPad, laptop or printer, or make the time go faster with a new speaker or headphones to block out the noise. Head to capricorn.coop/rewards to see how you can enhance your office space.

10.2-inch iPad (9thgeneration) Wi-Fi + Cellular 256GB

iPad mini (6thgeneration) Wi-Fi + Cellular 64GB

EPOS H6PRO Closed Acoustic Gaming Headset Sebring

Canon - Pixma Endurance G3600 Inkjet Multifunction Printer

Google Nest Hub Gen 2

Asus VivoBook Flip 14' Full HD 2-in-1 Laptop (512GB) [Intel i5]

Dell Inpsiron 3515 15.6' FHD Laptop (256GB) [Ryzen 5]

*Products subject to availability.

capricorn.coop/rewards Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Program Terms and Conditions which can be found via the Capricorn website.

TM

INCREASE PRODUCTIVITY AND MAXIMISE YOUR TAX DEDUCTIONS THIS EOFY WITH CAPRICORN FINANCE Now is the time to take action on those workshop equipment and tool updates you have needed to modernise your business.

Members nationwide are encouraged to use the end of financial year tax incentive to ensure their workshops are up to date with the latest equipment and tool technology.

Many Members were assisted with end of financial year equipment loans in 2021 with the most popular items purchased being hoists, diagnostic scan tools, wheel and tyre service equipment, air compressors and brake lathes.

Just as automotive mobility technology has advanced in leaps and bounds across recent years, so has the technology behind automotive workshop equipment, diagnostic scan tools, wheel service equipment, hand tools, powered tools and many more productivity increasing products. The updating of this essential workshop equipment ensures increased customer capacity to work on more modern vehicles while state of the art diagnostic equipment also ensures correct and timely parts replacements.

Capricorn Finance can ensure that your workshop is equipped to ensure a successful future through increased productivity, revenue and profitability, while also benefitting from the ATO’s Temporary Full Expensing initiative.

The end of the financial year is your deadline to maximise the Federal Government’s Temporary Full Expensing taxation incentive for business plant, tool and equipment purchases.

Qualifying businesses can immediately claim the business portion of the cost of purchasing or upgrading an eligible asset on their next tax return. Any eligible asset that is first used, held or installed and is ready for use for a taxable purpose

before June 30, 2022 can be claimed. (For full details, visit the Australian Taxation Office website www.ato.gov.au) “Capricorn understands that upgrading existing equipment or purchasing new equipment can significantly increase a workshop’s capacity and capabilities. Capricorn Finance is available to Members to help them achieve this,” stated Brad Gannon, Capricorn CEO Automotive.

"Capricorn Finance can ensure that your workshop is equipped to ensure a successful future " “Capricorn Finance is here to help our Members finance the equipment that they need to build a stronger business,’ Brad added.

Capricorn Finance offers all Members outstanding value with equipment purchase loans, with some Members already advised of their pre-approval for loan amounts up to $30,000.

Any Members who have not received this advice are more than welcome to discuss their options with the friendly Capricorn Finance team by calling 1800 327 437 or by sending an email to lending@capricorn.coop.

Capricorn Finance offers business equipment finance through Capricorn Society Limited (ACN 008 347 313). Fees & charges, terms & conditions and lending criteria apply.

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 7

FUTURE RIDE

FERRARI’S FUN FIRST V6 OUTPERFORMS ITS BIG BROTHERS 8 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

If there was ever a car that embodied the sentiment it’s not the size that matters but the way that you use it, it’s the Ferrari 296 GTB. Why? Because this little baby is a V6. (You read that right.

Ferrari, the company that made its name with gorgeous, high-performance, super-fast V12s, has just released its first ever V6.) It’s also a plug-in hybrid and it’s faster around the track than any of Ferrari’s V8s.

So, there are plenty of good reasons for your jaw to be on the floor right now. Let’s see if we can find some more.

The 296 GTB’s new 663 cv 3.0-litre twin-turbo 120-degree V6 is coupled with an electric motor capable of delivering a further 167 cv (122 kW), meaning the vehicle can unleash a total 830 cv of power (or 610 kW) at 8000 rpm. On the track, it has a maximum speed of 330 kmh. It does zero to 100 kmh in 2.9 seconds and naught to 200 in 7.3 seconds.

It’s technology Ferrari developed for the racetrack, and zippy doesn’t quite describe it. No wonder Ferrari’s marketing is promising the 296 GTB will “redefine fun to drive”.

It has an 8-speed DCT and E-Diff, and the MGU-K (a dualrotor single-stator axial flux motor) is located between the engine and the gearbox. A clutch is placed between the ICE and the electric motor to decouple them in electriconly eDrive mode (electric-only range is 25 km, with a top speed of 135 kmh before the ICE kicks in).

For all this technology, what does it sound like? A V12, naturally. The folks at Ferrari aren’t stupid. They know what we all want.

“Sound-wise, the 296 GTB rewrites the rulebook by harmoniously combining two characteristics that are normally diametrically opposed: the force of the turbos and the harmony of the high-frequency notes of a naturally aspirated V12,” Ferrari claims.

“Even at low revs, inside the cabin, the soundtrack features the pure V12 orders of harmonics which then, at higher revs, guarantee that typical high-frequency treble.

“This Ferrari’s soundtrack matches its performance.”

Ferrari has also paid a lot of attention to the aerodynamics.

The engine has been reconfigured (from the Berlinetta, where the B in GTB comes from) so all of the components most critical to heat generation are clustered in the upper central area of the engine bay. This allows for more efficient heat management of both the engine bay itself and the electrical components.

Externally, that has resulted in (or allowed for) some really elegant bodywork design, including the front and side air intakes, and a compact hood that helps apply downward pressure to the 296 GTB on the road. (If you need it, there’s also a LaFerrari-inspired active spoiler integrated into the rear bumper, which generates a maximum of 360 kg at 250 kmh in high-downforce.)

With its short wheelbase, compact size, sleek lines, muscular rear wing, Kamm tail and design references to classic-era Ferraris, the 296 GTB has a sporty character that is going to have wide market appeal.

Inside, the cockpit is entirely digital (as it was for the SF90 Stradale). It’s sophisticated and minimalist, which reflects the simple elegance of the exterior.

The 296 GTB is already on the road in Australia, although it might be a while before many of us catch a glimpse of one, as those who ordered one are anticipating long wait times. The 296 GTB costs more than A$551,000 (plus onroad costs) and comes with a seven-year maintenance program.

(For those who have been shouting at the page that the Dino had a V6, you are correct. But although Ferrari made the Dino, it didn’t wear the Ferrari badge. Ferrari says that means it wasn’t a Ferrari. We don’t make the rules. Deep breaths.)

The Ferrari 296 GTB might have a smaller engine than we’re used to, but it lacks nothing in power and performance. It even sounds right. The 296 GTB got the memo that you have to work with what you’ve got.

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70 YEARS OF ONE OF THE WORLD’S MOST DEDICATED MOTOR RACING CLUBS

by Paul Marinelli

You may not have heard of PIARC, but I can guarantee that you have spectated, watched on TV or competed at a motor racing event that this amazing motor racing club has had an integral involvement with across the past seven decades.

Let’s ride a time machine back to March 26, 1952, the day of a public meeting convened at Melbourne’s Savoy Hotel to discuss a design proposed for a motor racing circuit located at Victoria’s Phillip Island. This was the brainchild of six forward-thinking local businessmen: Winston Maguire, Ben Denham, Vern Curtain, John Elliot, Bill Evans and Herbert Watchorn.

With the plan accepted, a committee of 15 people was established during that meeting, forming the Phillip Island Auto Racing Club (PIARC). Few would have realised at this time how integral this club would be in the decades to come in the organisation and operation of major motorsport events across Australia and all over the world.

The now world famous Phillip Island Grand Prix circuit layout can also be traced back to these original PIARC pioneers. The circuit has been hailed as pure motorsport engineering brilliance in creating the ultimate racer’s racetrack, but according to local legend the story of the circuit’s design was somewhat less technical than all that.

The story goes that after downing several refreshing beverages, members of that original PIARC group walked across the stunning 300-acre seaside site with sticks and flags, mapping out

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the circuit’s now legendary, super-fast and challenging layout.

Whatever the case, inebriated or otherwise, they had created an incredible motor racing circuit that saw its first races held in December 1956. The Victorian seaside circuit also established the precursor to the Bathurst 1000, the Armstrong 500 Touring Car race, in 1960 and ran the event on three occasions through to 1962.

Local automotive aftermarket exhaust manufacturer and motorsport enthusiast Len Lukey bought the circuit, which was in a state of disrepair, after the 1962 Armstrong 500. Lukey leased the circuit back to PIARC at no cost — the club then set out to repair the circuit using their own labour and fundraising.

The circuit reopened for racing in October 1967 and 11 years of successful motor racing followed, with anything and everything racing at the popular venue including Formula 5000, Formula 2, touring cars, sports cars and motorcycles. All proceeded well until Lukey passed away in 1978. Sadly PIARC did not have the funds to buy back the property and the circuit was closed that year. Despite its closure, PIARC’s efforts to bring the circuit back to life continued.

The club continued running competitive motoring events across other venues including Melbourne’s Calder Park Raceway, using Phillip Island for historic rallies and club sprint events. In 1985 the circuit was acquired by Placetak Pty Ltd, with the view to make it a quality motorsport facility.

The circuit was refurbished to a reduced length of 4.4 kilometres and was once again open for business in December 1988. The circuit instantly became a global favourite when Australian 500cc Motorcycle Grand Prix promoter Bob Barnard brought the first 500cc World Championship race to the circuit in 1989.

This heralded a new era of success for PIARC, hosting World Superbike Championship events from 1990 along with Australian Touring Cars / Supercars, Super Touring and everything in between racing at this fan and television viewer favourite circuit. The 500cc / MotoGP Championship remained at Phillip Island permanently from 1997, and in 1998 the incredible Michael Doohan won his home Grand Prix there, as Wayne Gardner had done in 1989, along with Casey Stoner (the first of six times) in 2007. All three Aussie riders have sections of this revered racing circuit named after them permanently.

Throughout all of these decades and with all of the events held at the venue, PIARC became the pre-eminent organisation for motorsport official training and development across all facets of operating safe and successful motor racing events both in Australia and beyond our borders.

PIARC has been intrinsically involved in the training of officials and running of major motorsport events both locally and internationally for decades, their expertise extending all the way to Formula One races in Indonesia and Malaysia, and across the Middle East and Singapore, along with every major racing event held in Australia.

The PIARC slogan has always been simple — “Access to Motorsport” and this is exactly what the club has provided for seven decades, all the while ensuring the survival and the meteoric rise of one of the most exciting motor racing circuits in the world.

In 2004 the Linfox Corporation acquired the circuit and set out on a multimillion-dollar redevelopment of the property, securing its long-term continued success and growth.

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 1 1

ACCELERATING ELECTRIFICATION

Hyundai motor company has unveiled a strategic road map to accelerate its electrification ambition as it pursues sustainable progress for the company.

Hyundai President and CEO Jaehoon Chang and other executives presented the company’s electrification plans to shareholders, investors and various stakeholders at the “2022 CEO Investor Day” virtual forum. The company also unveiled sales and financial performance targets to be achieved by 2030.

The road map for Hyundai’s battery electric vehicle (BEV) is supported by: • strengthening BEV line-ups • optimising manufacturing capacity • securing hardware and software competitiveness Hyundai also presented its mid-to-long-term financial goals, earmarking KRW 95.5 trillion (~$A110 billion) of investment for future businesses by 2030 and targeting an operating profit margin of 10% or higher in EV businesses by enhancing competitiveness in hardware and software capabilities with an expanded line-up.

“Hyundai is successfully accelerating its transition to electrification and becoming a global leader in EVs despite a challenging business environment caused by the global chip shortage and ongoing pandemic,” Chang said. “Along with our seamless efforts to improve EV value, Hyundai Motors will continue to secure its business sustainability as a ‘mobility solutions provider’ through advanced hardware and software technologies.”

Strengthening BEV line-ups

Hyundai begins sales of IONIQ 6, followed by IONIQ 7 in 2024.

The Genesis luxury brand’s BEV line-up consists of two passenger cars and four SUVs, including the electrified GV70, which launches this year. Starting in 2025, all newly launched models from Genesis will be electrified.

Optimising EV manufacturing capacity Hyundai Motors aims to establish a high-efficiency manufacturing process for BEV production to accelerate its transition into electrification. The Hyundai Motor Global Innovation Centre in Singapore (HMGICS), the cornerstone for innovation in the company’s mobility value chain, will build a human-centred manufacturing innovation platform. The platform is expected to bring dramatic innovation in production efficiency through a flexible production system, advanced-level automation and digital twin technology. The innovation will be expanded to global plants in the future.

Beyond existing BEV production facilities centred in Korea and the Czech Republic, Hyundai plans to gradually expand its BEV manufacturing bases, starting with an Indonesian plant that recently commenced operation. The Indonesian plant will start BEV production this year.

As BEV production bases expand, the company will aim to increase the local procurement rate of batteries through strategic alliances with battery companies in major regions to secure sufficient battery supply. In 2025, the company expects to obtain more than 50% of its next-generation lithium batteries for BEVs through these alliances.

Hyundai Motors raised the annual BEV sales target to 1.87 million units by 2030, up from the previously announced 560,000 units by 2025. The company aims to take a 7% market share of the overall global BEV market.

In addition, Hyundai will also diversify battery sourcing to consolidate the competitiveness of future BEVs. The company has secured sufficient battery supply to meet its sales targets through to 2023. It plans to continue cooperation with various battery companies with the aim of securing 170 GWh of batteries for its models, including the Genesis luxury brand, by 2030.

Hyundai plans to introduce 17 BEV models – 11 Hyundai marque models along with six models from the Genesis luxury brand – by 2030 as it seeks to expand the BEV spectrum. The new Hyundai BEV models will include three sedans, six SUVs, one light commercial vehicle and one new model type. This year,

Hyundai is cooperating with various global partners to improve the energy density and cost efficiency of the next-generation batteries, such as the solid-state battery.

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Securing hardware and software competitiveness Hyundai Motor plans to introduce an integrated modular architecture (IMA), evolved from the electric global modular platform (E-GMP) that is the foundation of IONIQ 5 and GV60 that was successfully launched in 2021. The IMA will be utilised as Hyundai Motors’ passenger BEV platform and as its exclusive purpose-built vehicle (PBV) platform, helping to streamline production processes and reduce costs.

The IMA is being developed to standardise not only a chassis but also the battery system and motor. The innovative architecture can be used for BEV models in all segments, improving the driving range.

Unlike the existing BEV development system, which has different types of battery packs for each model, IMA can be equipped with standardised battery packs to attach flexibly, regardless of the model, to improve cost efficiency. The new architecture can secure sufficient energy density through the cell-to-pack system and shorten charging time.

Five standardised types of motors also will be installed on IMA according to model needs. This modular motor system can secure competitiveness in terms of cost and weight as well as motor efficiency.

Hyundai Motors will also strive to develop software architectures to provide a satisfying ownership experience for customers.

The company plans to apply an over-the-air (OTA) update to new models that will be launched at the end of 2022 and then expanded to all Hyundai models by 2025. In addition, the number of integrated control units can be reduced by one-third by 2030.

Autonomy In terms of autonomous driving technology, the Highway Driving Pilot (HDP), a Level 3 autonomous driving function, will be applied to Genesis G90 from the second half of this year.

The Motional, the autonomous driving joint venture between Hyundai Motor Group and Aptiv, plans to expand the service area of an IONIQ 5-based robotaxi following its commercial service commencement in 2023 and start self-driving delivery services this year through partnerships with Uber Eats.

Hyundai will achieve software transformation by expanding the business areas of mobility, connectivity and other services based on data and by enhancing software competitiveness. To do so, the company will establish specialised centres of excellence for software development in Korea and abroad.

By 2030, the company will invest a total of KRW 12 trillion (~$A13.5 billion) to boost competitiveness in software capabilities, including KRW 4.3 trillion (~$A4.8 billion) on technology development, such as connectivity and autonomous driving, KRW 4.8 trillion (~$A5.4 billion) on strategic investment for startups and research institutions, and KRW 2.9 trillion (~$A3.3 billion) on information and communications technology (ICT). After 2030, the company target is for the revenue from software-related businesses to represent approximately 30% of total sales.

Financial commitment Hyundai also disclosed mid-to-long-term financial goals through to 2030, including the investment of KRW 95.5 trillion.

Out of the total investment, KRW 39.1 trillion (~$A44 billion) will be allocated for research and development, and KRW 43.6 trillion (~$A49 billion) for capital expenditures to enhance business competitiveness, while KRW 12.8 trillion (~$A14.5 billion) will be dedicated to strategic investment.

The KRW 95.5 trillion expenditure plan includes KRW 19.4 trillion (~$A22 billion) for investment into the electrification field to expand EV production capability, build charging stations and engage in strategic technology alliances.

By 2030, Hyundai aims to achieve a 10% operating profit margin in EVs by increasing sales volume and innovating cost structure.

A strengthened EV line-up and development of efficient nextgeneration batteries and IMA will help the company meet its financial goals. The company has also set an operating margin goal of 10% on a consolidated basis.

Hyundai Motors strives to enhance shareholder value through a market-friendly return policy, despite concerns over uncertainties in the business environment in 2022.

Note from National Collision Repairer editor: There is no doubt that the move towards an electrified car parc is gaining momentum, and repairers would be well advised to begin preparation for this inevitable shift in their customer base.

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 1 3

Customer database – a most valuable asset

by Geoff Mutton A good database should be the most valuable asset in any automotive workshop.

Whether you agree with this statement or not will probably depend on when the question is asked. If the industry is booming, like it is right now, and new customers are ringing the phone off the hook, you might well put a good database at the bottom of your priorities.

• • • • • •

But there is nothing predictable in life these days, so perhaps another forced lockdown might make you think otherwise.

Every time a customer makes a booking, their best contact details need to be confirmed, including their mobile number, mailing address and email. If you don’t ask, they won’t tell.

The importance of a database is that it helps to keep the workshop connected to those customers who keep your doors open – your existing customers. Most bookings are typically made by existing customers, and around half of the new bookings will most likely be word-of-mouth referrals.

Existing customers already know and trust you and they will happily buy from you again if you keep looking after them well.

What information should you collect?

Simply put, the more information you collect, the better the database will operate.

Subject to compliance with applicable privacy laws, at a minimum you should consider collecting 1 4 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

name — correct spelling mailing address mobile number work phone number email vehicle details and history.

keeping contact than just sending an annual service reminder.

Other potential contact points: 1.

Service reminders — this is a must and should be seen as a courtesy. To increase the effectiveness of these reminders (if your system allows) set the reminder frequency to six, nine or 12 months — whatever frequency matches the customer’s driving habits.

2.

Registration/Warrant of Fitness reminder for applicable states — another courtesy.

3.

24-hour booking reminder — life today throws up many demands for attention, so a friendly reminder about an upcoming appointment is usually appreciated. It will also help to warn you about no-shows and allow time to bring other bookings forward if customers can’t make their appointment.

4.

Thank you/review reminder — within 72 hours of a service or repair, take the opportunity to thank your customer for their business and suggest they give your workshop an online review on their preferred platform.

Update daily Databases need consistent daily attention.

Also check that you have the latest service or registration/Warrant of Fitness due dates for every customer. Make it mandatory that your technicians check and record this on every vehicle they work on.

Customer contact — how often?

Firstly, it’s important to bear in mind that there are privacy laws concerning when an individual’s personal information can be used for marketing purposes and spam legislation applying to certain commercial electronic messages.

Assuming all applicable legislation is complied with, the optimum frequency of customer contact may vary depending on the circumstances.

Monthly contact might be too much for some customers, but there is more to

5.

Service follow-ups for the slowpokes — who knows why many customers tend to ignore the regular service cycles for their vehicles? The mediumand long-term consequences of maintenance neglect could cost them dearly, so it is really in their best interests if you send them reminders about the importance of vehicle maintenance at the appropriate intervals. These should start going out when services reach three months overdue.

6.

Holiday messages — Christmas and Easter are good enough reasons to make contact with your customers. Simply wishing them happy holidays and updating them on workshop hours gets your business brand front of mind with customers.

7.

Special message — there will be other times in the year when a communication with customers is justified. It could be to introduce a new product or service, or related to a local emergency. Don’t waste these opportunities, but do it sparingly for the best chance that the message will get read and understood.

The best communication platform?

The three main communication platforms are SMS, email and mail. Each method has advantages and disadvantages.

• Mail — very expensive but very personal • email — free but likely to be deleted as junk • SMS — most people will open an SMS, but there is limited text capacity.

TaT research tends to nominate SMS as providing the best bang for your buck. It’s reasonably priced; gets read most of the time; can be linked directly back to your website, phone numbers or booking portal; and integrates well with most point-of-sale systems. There will be times when different mediums will be better suited, so use whatever medium works best for you and your customers.

Other databases So far, the focus has been on the traditional database of past customers, but other databases can be generated from any type of information.

For example, if your business operates social media accounts like Facebook and Instagram, your followers are essentially a database of existing and potential customers. Subject to compliance with relevant privacy and spam legalisation.

Internet cookies on your website also allow you to capture information on people who have visited your website. Digital marketing can be used to advertise to these potential customers.

These aren’t customer databases in the traditional sense, but they are still lists of potential customers who have shown an interest in your workshop.

Those who have been around for a few years will know that boom times don’t last forever. Economies fluctuate and nothing is ever certain or predictable.

Regardless of the current status of your business, maintaining and using your database effectively will ensure your business reaches its full potential.

Applicable privacy legislation may constrain or prevent the use of an individual’s personal information for marketing purposes. Applicable spam legislation may also operate to impose restrictions on the sending commercial electronic communications in certain circumstances. Members who have questions regarding the implications of these laws on their business should seek independent advice.

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 1 5

BUSINESS BUILDING

ARE YOUR CUSTOMERS TALKING ABOUT YOU? The two essential elements for business growth are retaining the customers you’ve got and gaining new customers regularly.

If the best way to retain existing customers is to give them exceptional service, what would be the best way for a workshop to attract new customers? Same answer.

Exceptional customer service is, without question, the main driver of new customers to anybody’s door and word of mouth is, and always will be, the best possible way of spreading the word about that exceptional customer service.

State of the Nation 2021 found that 78% of workshops rely on word of mouth to promote their business. For thousands of years, humans have relied on word of mouth for all types of information. Back in BC (that’s before computerisation), the only way to communicate anything was through word of mouth.

OK, so the digital age has provided some interesting new ways to tell stories, but the basics have not changed. And for those in business, the game changer that gave storytelling a much sharper edge is the online review platform. For those who remain unconvinced, consider these recent statistics published

by Forbes magazine: • 90% of consumers read online reviews before visiting a business.

• 84% of people trust online reviews as much as a personal recommendation.

• 74% of consumers say that positive reviews make them trust a local business more.

• Responding to reviews is as important as ever, with 30% of respondents naming this as very important when judging local businesses.

How to get reviews

Assuming your business is indeed providing genuinely great customer service, the next strategy to adopt is to actively ask your customers to review the business. Surprisingly, only 27% of workshops currently encourage customers to leave online reviews. Requesting a review is not as demeaning as it once was, because technology has made it much easier to post reviews and reviews have become a commonplace measure of popularity.

1 6 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

Your business can do a lot more to generate good reviews, such as: • Set up a tablet in the waiting room, dedicated for customer feedback and reviews.

• Run competitions with prizes for positive reviews and social media ‘likes’.

• Leave business cards or flyers on the front passenger seat of the customer’s car, prompting reviews.

• Send out a thank you letter, email or SMS suggesting that a review of the customer’s last workshop experience would be appreciated.

How to respond to negative reviews

Remember the lines made famous by Abraham Lincoln, ‘You can please some of the people all of the time, you can please all of the people some of the time, but you can't please all the people all of the time’. These words often haunt business owners who find it difficult to deal with negative reviews. Indeed, many workshop owners convince themselves that’s it better to be invisible than to have a negative review. Unfortunately, it doesn’t work this way. Customers will review you whether you like it or not. If you do get a negative review, consider taking these actions: • Respond promptly.

• Write like a person, not a corporation.

• Correct inaccuracies.

• Be real and admit if you have made a mistake.

• Don’t try to delete the post.

Show off your reviews

Once your online reviews start to build, they will become very visible to prospective customers via platforms such as Google and Facebook. You can capitalise on this by linking or embedding the review feed into your own website. It is important that you respond to reviews; social media is a public forum and there is expectation of a response. While this is especially important if a customer complains, all comments should be acknowledged and responded to, as it shows appreciation and active engagement.

Market intelligence suggests that your review feed is more likely to be read than everything else on your website. So don’t pretend that online reviews don’t impact your business. They will, whether you like it or not, so just embrace the technology and start using it to attract new customers to your workshop.

Complimentary access to service data for over 34,000 vehicles

An invaluable Member benefit.

Capricorn Service Data is the key to unlock online service information including manufacturer’s service schedules and an estimate calculator. You can also upgrade to the full Autodata service at the introductory price of $2* for your first month, and gain access to diagnostics and wiring information.

Take advantage of this invaluable Membership benefit and find out more today. * All prices exclude GST. The first month pricing is only applicable to users who have not had the upgrade in the last 6 months. On completion of the introductory month you will be automatically rolled into a 12 month subscription at full price for the Diagnostic & Repair product charged monthly to your Capricorn account unless you contact Autodata before the end of your introductory period. The use of Capricorn Service Data is subject to the Capricorn Service Data Terms and Conditions available at capricorn.coop/tc

Login to cap.coop/servicedata

TM

Cybercriminals Preying On Small Businesses As a small-business owner in Australia, you wouldn’t think you’d be the target of ruthless criminal syndicates based on the other side of the world. But you’d be wrong. Cyber attacks are surging worldwide, and over 40 per cent of them are aimed at small businesses. This is because with their limited finances and technical skills, small businesses make much easier targets than large companies with big budgets and their own IT departments.

Protect yourself

Multiple threats

•

Cybersecurity is not just an IT problem; it can potentially impact the entire business. Data theft can see your bank account drained or confidential data misused. Data loss, such as through ransomware, can be even more devastating. Ransomware attacks may be launched from eastern Europe, Asia or anywhere in the world, and currently cost Australians over $1 billion a year.

Cyber attacks on your business can also result in the theft of the private information of others, such as customers, employees or business partners. This can lead to civil claims against you, as well as fines and penalties under the Privacy Act. Your staff will be the strongest line of defence in your campaign to protect sensitive business and customer data from privacy breaches and malicious activity.

•

Use good password policies, for example by ensuring they are strong and are regularly changed. Many cyber attacks make use of weak or stolen passwords.

•

Have a good data backup system. This guards against cyber attacks as well as hardware failure or human error. Offsite data backups can also help protect against catastrophic events such as a fire.

Some basic steps you can take to protect your business against cyber attacks include: •

Be alert and aware of the latest internet threats, which are constantly changing. By subscribing to the Federal Government’s free Stay Smart Online Alert Service (www. staysmartonline.gov.au), you will receive regular updates on new cyber risks.

Never use pirated software, and always keep your operating system up to date with the latest patches. This greatly reduces the number of potential entry points into your computer that are available to an attacker.

•

Invest in good-quality antivirus software.

•

Train your staff to be especially careful with incoming emails. Many cyber attacks on small businesses begin with an email pretending to be from a legitimate source such a bank or an energy provider. The scammer may ask you to provide personal details or click on a link, giving them access to your systems and data.

•

Limit users’ permissions to install new software on your business computers.

Cyber insurance Standard insurance policies generally don’t include cover for cyber attacks, so specialised cyber insurance is becoming a must-have for any business connected to the internet. Cyber Liability Insurance forms of cover are designed to help businesses mitigate what could be significant costs associated with recovering following a cyber-related attack or security breach. While it won’t prevent an attack from happening, it can make all the difference in keeping the costs involved in the clean-up under control. Capricorn Insurance Services offers basic cyber cover, with the option of more comprehensive solutions if required.

Talk to your Capricorn Risk Services Account Manager about about how this form of cover can help protect your business from cybercriminals.

Contact Capricorn Risk Services 1800 007 022 I info@capricornrisk.com I capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).

How to forecast your profit (and make sure you achieve it)

By TatBiz

A profit and loss forecast provides a road map for where your business is headed. Here’s how to create one, and how to use it, to achieve your goals.

Did you know you are 42 per cent more likely to achieve your goals if you write them down?

That statistic, from a university study, is just one reason why a profit and loss forecast should be the most important document in every workshop owner’s and manager’s life.

It’s a financial snapshot of where your business is headed, showing your projected incomings and outgoings, and a forecasted end-of-year profit. If you use it properly, it’s also a road map – something you can refer to constantly to check you’re heading in the right direction.

Having a profit and loss forecast – and living by it – should be a total no-brainer. And it is much easier to create one than you might think. Yet many of us don’t have one. We’re flying by the seat of our pants!

If that’s you, then this article is for you. We’ll tell you everything you need to know, in the simplest way possible, to get you started. And if you do already have a profit and loss forecast, or something like one, then this article will help you get the most out of it.

The simplest way to work out a profit and loss forecast A profit and loss forecast (or budget) can be broken down into two distinct sections. Firstly, you need to forecast your revenues. Then you need to forecast your expenses. When you subtract one from the other, you get your profit or loss for this financial year.

It’s pretty simple and it will probably only take you about an hour or two.

Or your accountant or bookkeeper can help you with it, if you prefer.

How to forecast revenues When you’re setting a sales target, the easiest thing to do is look at what you did last year and add some more. This is okay, but there is a better way to do it. It involves forecasting revenues based on the team you have in place and the output you think the workshop can achieve.

Here’s what you need to consider: •

How many labour hours do you think your technicians can sell?

Take into account their qualification levels, other tasks they do in the workshop and their historical outputs

•

How many weeks on average do you think your team will work?

There are 52 weeks in a year, but you will lose 10 days to public holidays, 20 days to annual leave and five days to sick leave

•

What is your average labour rate for the coming financial year?

Some workshops have different rates for trade customers, general repairs and diagnostics. If so, choose an average.

How to forecast expenses Forecasting expenses is also relatively easy, if you have last year’s numbers in front of you. If you don’t know how to access your profit and loss statement from last year, get your bookkeeper or accountant to provide one.

Simply work through each expense category and, based on the information you have on hand, forecast what you think the expenses will be this year. If the forecast expenses are not likely to be significantly different, just add three per cent for inflation.

The biggest two numbers will be rent and wages, so take the time to accurately forecast them. Every year there will be unexpected expenses, so create a miscellaneous category and add an additional five to 10 per cent to your total forecast expenses.

Calculating your net profit (or loss) target If you subtract the forecast expenses from forecast revenues, you will be left with a forecast profit or loss.

It should also now be abundantly clear what you and your team are going to need to do in order to achieve that figure (how many hours you’ll need to sell, work, etc.). If you don’t like the forecast figure, you can review it, finding places where changes can be made.

Either way, your forecast is now your road map for the year ahead.

Tracking your progress against your forecast Road maps only work if you follow them. That goal-setting study mentioned above also found the most effective people track their goals and report on them regularly.

So it’s vital you review your profit and loss forecasts monthly, to see how your workshop is tracking against its budget.

Realistically, setting a profit and loss forecast will only take you a couple of hours, but that time has the potential to generate far more money for your business than if you spent the same hours on the tools fixing cars. It’s certainly time well spent.

This article does not, nor is it intended to , constitute legal, financial or other independent professional advice. Please consult your professional adviser before relying on any information contained herein

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 1 9

What you need to know now in preparation for 2030 2030 may seem like a long way off, but its important to start preparing your business now, in plenty of time for the future.

We’ve been revisiting McKinsey & Co’s Making every part count report and PwC’s presentation, ‘The Impact of Electrification & Automated Technology on the Automotive Aftermarket’ at the 2021 AASA Vision Conference to get every last drop of insight to help you prepare for the aforementioned future.

From new vehicles to different parts and new ways of owning and using cars, 2030 is shaping up to be a very different industry in comparison to today. Here’s what McKinsey & Co, and PwC say to expect in 2030.

What do the dollar figures look like?

In 2019 the global aftermarket industry was valued at USD $463 billion. In positive news, the aftermarket industry is projected to grow at 3.5% per annum as we reach 2030. And whilst it is mostly positive it’s driven from a complex mix of increases and decreases. This is due to what McKinsey & Co call ‘the increasing electrification of the global car parc,’ or for us, the increasing sales of electric vehicles (EVs).

2 0 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

What about the EV revolution?

Surprisingly, as per McKinsey & Co, by 2030 the global car parc is 15% larger than in 2020 and has a significantly higher age. The average age of a car on the road will be 12.9 years, which is positive for us in the aftermarket as it provides potential for greater quantity and length of services, driving an increase in revenue.

As Capricorn Automotive CEO, Brad Gannon mentioned, ‘as we know, as a car ages, replacement rates for different parts also increase. So, it is positive to see a higher average age of cars on the road, as this results in greater demand for parts and servicing.’

With all those new cars on the road, the make-up of the global car parc will change. By 2030, McKinsey & Co project EVs will make up between 18 – 26% of all the cars on the road. Some of this will be driven by PwC’s projections of EVs contributing to 13 – 20% of new car sales in the US.

"By 2030, McKinsey & Co project EVs will make up between 18 – 26% of all the cars on the road."

For those in the know, this will come as no surprise, as OEMs have made numerous announcements over the last few years with their electrification plans. Over 70 EV models are expected to launch in the next 7 years. And with the total cost of ownership expected to become on par with ICE vehicles in 5 years, EVs are becoming an increasingly attractive option for customers.

Interestingly, the types of those EVs are expected to change as well. Between now and 2030, the total number of EVs is expected to move from a majority of hybrid vehicles to a majority of BEVs.

The rise of vehicle autonomy and connectedness By 2030, the next level of vehicle autonomy will have firmly arrived. McKinsey & Co project 60% of passenger cars sold to be equipped with L3 systems, and 14% with L4. In the US, PwC project 70% of total vehicle sales will be sold with L1 – L3 systems.

Vehicles are going to be increasingly connected, with connected technologies available on all new vehicles by 2030 and most of the car parc connected. Shared mobility will also become significant, resulting in a reduction in car ownership, but an increase in mileage per vehicle.

What will my customers expect from me?

Covid-19 has exasperated a decline in customers looking for physical touchpoints at dealerships, especially amongst 35 – 54-year-olds. Customers are increasingly looking for online sales

instead. McKinsey & Co report that the changes in customer expectations and value generation will become increasingly digital.

This means how your customers interact with you online are going to become increasingly important. Making it accessible and easy for your customers to reach you digitally is going to keep you relevant in your customers’ mind.

McKinsey & Co recommend seeing the aftermarket industry like a relationship, not just a service. They project that the initial purchase of the vehicle will become less important to the customer, and it will be the connection and offers made during the customer lifecycle which will become the true driver of value for customers.

The car parc may change in small increments over time but getting the basics right can help prepare you for the future.

Check out our articles on customer relationships here to make sure you are getting the basics right.

As Brad mentions, ‘no matter where you are at in your business, making small incremental changes now will put you in a better place in 2030.’

For more information on the McKinsey & Co Making every part count report, check out mckinsey.com. PwC’s presentation at the AASA Vision Conference can be found on aftermarketsuppliers.org.

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 2 1

What your turnover says about your happiness We discovered some interesting connections in the data from our latest State of the Nation report. Surprisingly, there seems to be a relationship between turnover for a workshop and the owner’s level of happiness. We’re going to take a peek into the numbers behind the report and show you what we discovered.

Along the way, we’ll also explore the connection between success and happiness. In the end, we suggest a lesson from the data that you can apply to your own pursuit of success and, ultimately, happiness.

The big picture: how Members feel about success

Let’s start by looking at what Capricorn’s survey of Members, State of the Nation 2021, has to say about success. One question asked was, “How successful do you feel?” Here’s what respondents had to say:

How successful do Members feel?

5%

30%

53%

12%

● ● ●

Less than $250k Between $250k and $1 million More than $1 million

Twenty per cent of Members who participated in the survey fell into the first category, 49% were in the second, and 22% were in the third. (Nine per cent chose not to reveal their turnover.)

So, what’s the relationship between turnover and feelings of success? Here’s what the data shows:

(% saying “very” and “extremely successful”)

You can see Members are generally a pretty successful-feeling group.

But the really interesting question the survey also tried to answer was, “What does success mean?” In other words, when Members report feeling successful, which factors are they taking into account?

Here’s what they said:

Perceptions of Success 59% 57%

Being profitable/no financial stress Customer recommendations/referrals

56% 56% 41%

Doing high-wuality work A good work-life balance Lots of repeat customers

39% 35% 35%

Earning the trust of customers A good workplace culture Loyal staff

21% 21% 21% 19%

Paying yourself a steady wage Investing in new equipment and tech Owning your own premises Efficiently managing cash flow Other

Money

• • •

"How successful do you feel?"

Extremely successful Very successful Moderately successful A little successful Not at all successful

People

of how Members are distributed when it comes to turnover. The data we’ll be looking at divides respondents into three groups, according to annual turnover:

Personal

•

<$250k ● — 26%

•

$250k-$1mill ● — 32%

•

>$1mill ● — 46%

On average, higher turnover equates with greater feelings of success.

That’s not exactly a shocker, is it? But, recall, we said we were going to be talking about how turnover relates to happiness. Higher turnover may mean a greater sense of success, but does it also lead to a greater sense of happiness? We think the data gives us some reasons to think so.

But before getting to that, we need to pause to consider what happiness is in the first place and how it might be related to success.

Happiness and success

We all want happiness and many thinkers throughout history have suggested the search for it is our most basic drive. Yet there isn’t a clear, agreed-upon definition of what it is.

1% Investment

As you can see, there is a fair amount of variety here. The top answer is probably no surprise. When most people think about success, financial considerations are the first thing that comes to mind. But many respondents also identified factors that relate to the work they accomplish and to the people involved.

The difference turnover makes

But how does turnover relate to all of this? To answer this question, we’re going to take a look at some of the data not published in the official report.

Before we get to that, however, it would be helpful to have a sense 2 2 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

Philosophers have weighed in on this question for centuries. More recently, psychologists have taken a more data-driven approach to try to figure out what happiness is really all about.

One thing both the philosophers and the psychologists would mostly agree upon is that happiness, at least the kind we’re really after, isn’t just a matter of feeling good. The mere pursuit of pleasure in its various forms is not likely to lead to a life we’d call happy.

Instead, the kind of happiness most people really want seems closer to what we might call meaning. This takes us beyond a focus upon pleasant feelings to questions like, “Does my life seem to have a purpose?”, “Am I contributing to something bigger than myself?”, and “Do I feel I am part of a community?” Being able to answer “yes”

to these questions is strongly connected with having the kind of deep happiness for which we long.

In fact, the director of the longest continuously running study on happiness in the world, the Harvard Study of Adult Development, begun in 1938, concludes the single most important factor for human happiness is the quality of our relationships.

What does all this tell us about the connection between success and happiness?

For one thing, it tells us our picture of success is really important.

If, for instance, we understand success as simply getting lots of money, we’re likely to find that achieving it doesn’t contribute much to our happiness — at least not in the long run. (It could even hurt it as we suffer the disappointment of realising what we thought would make us happy has failed to do so.)

On the other hand, if success to us means giving value to other people, then our attaining success is likely to increase our sense of happiness as well.

Let’s return, then, to the chart above labelled, “Perceptions of Success”. The different options here represent alternate ways to think about success. “Being profitable/no financial stress” for some might be just about earning more income. For others, as the wording seems to suggest, it might involve merely the absence of something (stress) that tends to erode happiness.

Several of the other options, however, point in a direction of greater potential meaningfulness. “Doing high-quality work”, for instance, is connected to our sense of contributing something to the world.

“Earning the trust of customers”, and “a good workplace culture” both concern the quality of relationships.

Given what we’ve said so far, it is plausible to suggest that those for whom success is more about relationships and contribution will tend to be happier than those more focused on financial matters.

Can we see any indication in State of the Nation that turnover is connected to what Members have in mind when they think about success?

Turnover and what matters for success

The survey data doesn’t directly answer our question, but there are some intriguing clues that point to a difference between how those with the lowest turnover and those with the highest define success.

One table in the data sorted Members’ perceptions of what success means by their level of felt personal success. (Recall from the data presented above that the higher the annual turnover, the greater the felt level of success reported. This makes good logical sense. If your revenues are low, you’re unlikely to feel very successful.)

This table reveals an interesting difference . Those reporting the lowest levels of success are the most likely to identify “being profitable/no financial stresses” and “being able to pay yourself a steady wage” as markers of success.

On the other hand, those reporting the highest levels of success were most likely to select “customer recommendations/referrals”, “doing high-quality work”, “having lots of repeat customers”,

“earning the trust of customers”, and “having a loyal staff”.

In other words, those who feel most successful (which are likely those with the highest turnover) are the most likely to think of success in terms of their contribution and their positive relationships with customers and staff. Those who feel least successful (which are likely those with the lowest turnover) are the most likely to think of success in terms of finances.

The last thing we want to look at is the way Members responded to a question asking them to what extent they agreed with a set of statements. Here’s what caught our attention: <$250k $250k- >$1mill $1mill

I feel it’s important to recognise and reward staff

80%

92%

96%

I actively think about ways to make the workplace culture more positive

64%

75%

84%

Both of the questions point to the degree of focus upon relationships with staff. The higher the turnover, the more important these aspects are taken to be.

Of course, one thing that might explain the difference here is that higher turnover businesses tend to have more staff, making these concerns naturally more relevant.

But whatever the explanation, the end result is the same: the lower turnover workshops are focused less upon relationships with staff. And this means they’re less occupied with something that connects more strongly with happiness.

Improving your own success — and happiness

What should you take away from all this?

We have seen that higher turnover correlates with higher reported feelings of success. The data also suggests it correlates with a picture of success that focuses more on relationships (with both customers and staff) and contribution.

If what psychologists tell us about happiness is right, we can conclude that higher turnover will tend to be connected with a more robust happiness.

One consideration based on the data: shifting your own focus in terms of what counts for success more towards relationships and the difference you make for customers could well enhance your happiness.

An interesting question is whether the different orientation towards success possessed by Members achieving the highest turnover is in part responsible for the greater flourishing of their enterprises. If it is, shifting your focus might just improve your bottom line, too.

If you found this discussion interesting, we encourage you to download the State of the Nation report for plenty of other insightful data on the Australian automotive aftermarket.

C A P R I C O R N I G N I T I O N M AY 2 0 2 2 2 3

APPRENTICESHIPS ARE US 14

PREFERRED SUPPLIER PROFILES

AAA RADIATORS QLD aaaradiator.com.au

SUSPENSION SUPPLIES AUSTRALIA QLD, VIC/TAS ssa.com.au

VIC/TAS, NSW/ACT apprus.com.au

YEARS PREFERRED SUPPLIER

8

YEARS PREFERRED SUPPLIER

Apprenticeships Are Us has been supplying quality apprentices to the automotive industry for over 15 years. They are a not-forprofit organisation where surpluses are put back into the industry for the direct benefit of their clients.

3

YEARS PREFERRED SUPPLIER

Suspension Supplies Australia has built its reputation on quality products and understanding customer requirements. The business services and supplies distributors, fleet, and trade outlets, with a focus on ensuring customers receive the best service that can be offered with a quality, reliable product.

Access to a full workshop facility provides the ability to customise products to ensure requirements are met.

Following significant growth over the past five years, AAA Radiators has invested in a brandnew office and warehouse facility in QLD to support the local network.

This branch provides faster delivery of parts to customers in the local area and significantly reduces lead times to far north Queensland customers. AAA Radiators stocks more than 20,000 cooling products and headlamps, and ongoing growth has allowed the company to look into expanding its range to support request and demand requirements of its customers.

AAA Radiator customers are surprised at the levels of inventory it stocks and in the continual growth of leading genuine, OEM and aftermarket brands which are now available.

2 4 C A P R I C O R N I G N I T I O N M AY 2 0 2 2

Apprenticeships Are Us differentiates itself from other group training organisations through only servicing the automotive industry. They are at the forefront of addressing the skills shortage and are dedicated to developing the future tradespeople of the automotive industry.

3

YEARS PREFERRED SUPPLIER

BODYSHOP PAINT SUPPLIES VIC/TAS

bodyshoppaintsuppliesbayswater.com.au

MPI AUTOMOTIVE WA, VIC/TAS mpiautomotive.com

13

YEARS PREFERRED SUPPLIER

The company offers distribution throughout Australia and has additional warehouse locations in Perth and Melbourne, so customers can be assured they get expert advice and a quality product in a timely manner.

Suspension Supplies Australia supplies and designs heavy-duty aftermarket leaf springs and has their own range of suspension supplies. membership benefits provides a unique offering to sustain and boost member businesses.

Apprenticeships Are Us provide recruitment of automotive apprentices, working with the Commonwealth and State Governments, Registered Training Organisations and the school system.

After humble beginnings as a single exhaust shop in Perth, MPI Automotive is now the number one performance exhaust brand in Australia. MPI Automotive covers Australia’s biggest range of vehicles and is renowned for the ease of fitment, great sound and longevity that’s backed by a 10-year warranty.

MPI Automotive’s in-house manufacturing capabilities ensure they are not reliant on imported products, with the company continually developing products for all the latest releases to ensure they remain at the forefront of the market. This also allows them to provide the highest standards of quality, all while keeping Aussie manufacturing alive.

With an extensive range of products available, Bodyshop Paint Supplies Bayswater is the perfect one-stop shop for the DIY repairer and car restorer, with products being sold at extremely low trade prices. Bodyshop Paint Supplies provides quality spray painting and panel beating equipment and body shop supplies to industries throughout Melbourne’s Eastern Suburbs, offering exceptional service to both trade and retail customers. With over 100+ years of combined experience in the industry, and a team of qualified technicians always on hand, the company is proud to offer guidance with colour matching, spray painting techniques, product advice and any other help you may need.

MEMBER PROFILES

The radial engine set to revolutionise the streets Capricorn Member Bespoke Engineering made headlines earlier this year when they unveiled a three-cylinder radial engine suitable for both motorsport and aviation.

The South Australia-based engineering company specialises in novel solutions for a variety of industries and has been working on the radial engine since 2017.

Launched under a new brand, Radial Motion, the engine has simple, modular and interchangeable parts. The team at Bespoke say the lightweight and compact 2.0- and 2.1-litre three-cylinder engines deliver “sparkling performance and rock-solid reliability, with unique visual appeal and an emotive exhaust note”.

Naturally aspirated Radial Motion engines can produce 100 hp per litre and the engines can sustain high levels of boost.

Although developed for aviation use, the Radial Motion engine is just as comfortable performing at ground level. Bespoke’s first customer for the engine fitted it to an Outlaw Porsche 356 racer (built by well-known Porsche afficionado Ron Goodman).

Initial testing of the engine was done in a modified 1972 VW Superbug, which took part

in the Adelaide Rally tarmac event and has now got several hundred road kilometres under its wheels.

“Other vehicles used to test the Radial Motion engine include a 1976 VW van and a Bon-Trike three-wheeler, with a motorcycle currently under construction to chase a land speed record at Speed Week on Lake Gairdner in 2022,” the company said.

With a simple, robust design that can be modified and tuned by enthusiasts, the Radial Motion engine “delivers ample power and abundant personality”.

For motorsport applications, the radial engine has a high output and slim profile and is lightweight. Access to camshafts and internals is easy and parts such as conrods, pistons, valves and rockers are off-the-shelf products available worldwide, said Radial Motion founder and designer Nick Mebberson.

“Designing and developing a new engine is a considerable challenge,” he said. “One thing that we found to be a great help was being able to get parts at the right price through Capricorn. Having easy access to the supply chain without having to search high and low was great.”

According to Bespoke, the Radial Motion engine is an ideal replacement for classic VW and four-cylinder Porsche models, including 356, 912 and 914, delivering reduced weight and improved weight distribution, while remaining inside the footprint of the stock engine and maintaining ground clearance.

The engine can also be configured to fit many other classic cars and is being tested in aviation applications, with variants also being developed for military use.

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LAST MONTH'S ANSWERS LAST MONTH'S WINNERS 1st Prize - 4,000 points Shore Power Diesels Ltd 2nd Prize - 2,000 points Schwarz Motor Repairs

Email your answers to ignition@capricorn.coop before the 25th of May. Winners will be selected by a lucky hat draw of correct entries. Please ensure you include your Member number and email address when submitting your entry.

WORD Find the 15 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!

CYLINDER AVIATION TURNOVER PREPARATION AUTONOMY FORECAST EXPENSES CUSTOMERS

DATABASES PANEL FERRARI LENDING DEDUCTION RACING REFERRAL

All information, material and content in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information in this edition of Ignition you should consider the relevance of it to your own circumstances and, if necessary, take professional advice.

Any opinions expressed in an Ignition article are those of the relevant individual author and do not necessarily reflect the opinions or views of Capricorn. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including without limitation, any third party authored article or supplier advertisement in respect of which Capricorn merely acts as conduit) included in this edition of Ignition. To the fullest extent permitted by law, Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: i. reliance on any material in Ignition; or ii. any inaccuracy, error or omission in any material in Ignition.

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SPREAD THE WORD...

...about Capricorn and earn 10,000 Bonus Points If you know someone in the auto business who isn’t a Member then now’s the perfect time to Spread the Word.

Simply pass on the lead to your Area Manager before June 30 2022, and when they join you’ll get 10,000 Bonus Points as a thank you.

join@capricorn.coop | capricorn.coop | 1800 327 437 The promotion is open to existing Capricorn Members who during the period of 1 May 2022 to 30 June 2022 refer a prospective Member to their Area Manager. Allocation of the 10,000 bonus Capricorn Reward Points (“Member Reward”) is subject to the referred prospect becoming a Member by 29 July 2022. Participation in the Capricorn Rewards scheme is subject to the Capricorn Rewards Terms and Conditions which can be found at: www.capricorn.coop/terms-conditions. The Member Reward is not redeemable for cash or transferable.

Prospective Members initially join Capricorn on a trial basis. After successful completion of a trial period and having met the minimum required spend of AUD$12,000 p/a, they may become full shareholder member of Capricorn through the purchase of shares. Shares are issued by Capricorn Society Limited (ACN 008 347 313). No offer of shares is made in this promotion. An offer of shares will only be made in, or accompanied by, Capricorn’s Prospectus and any supplementary prospectus which is available on request or may be viewed at www.capricorn.coop/corporate-documents. Before making any decision to apply for shares, prospective members should consider the Prospectus and any supplementary prospectus. Any application for shares must be made on the application form in or accompanying the Prospectus.