NOLN - April 2020 by EndeavorBusinessMedia-VehicleRepairGroup

TIME SAVERS THE SECRE T S TO SHAVING MINUTES OFF REPAIR TIME PAGE 50

Cut Down on Wasted Time Michael Meuret has emphasized customer waiting time at his Idaho shop, Einsteinâ€™s Oilery.

NO-PROBLEM PROFIT CENTERS PAGE 30

THE BENEFITS OF A FAMILY-RUN BUSINESS PAGE 36

SET AN EXAMPLE FOR EFFECTIVE MANAGEMENT PAGE 46

APRIL 2020 / NOLN.NET

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April 2020

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2020

VOLUME NO.

ISSUE NO.

BOB RIDER

CONTENTS

APRIL

COVER STORY Changing staff numbers and adding locations can mean big investments. Make sure your shop is at full capacity first. PAGE 50

APRIL 2020

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04.20

CONTENTS

10 ONLINE

How hybrids are faring in the market 13 EDITOR’S LETTER

Here to help 15 BY THE NUMBERS

Added services roundup

QUICK HI T S 18 INDUSTRY INSIGHT Tough calls amid coronavirus outbreak 22 AROUND THE INDUSTRY

More surprises from direct injection 25 ADAPT

A legal research primer for shop owners 26 SHOP LOOK

Bringing the quick lube to town

SE RV ICE 44 PIT STOP

Understanding advertising and marketing 46 EDUCATION+TRAINING

Follow this exemplary manager’s rise 50 CASE STUDY

Counting the minutes toward a full shop

F E AT UR E S 30 FEATURE

Areas of Expertise Having multiple profit centers can grow business, but it takes the right leader BY M AT T H U D S O N

Multi-Talented This operation has seven profit centers. How do they do it?

56 TECH+TOOLS

They’re free, and they’re business boosters

C OL UMN S 28 FROM THE SHOP

Be a coach to your team

Family First How one operator sought a career path for his sons BY A B BY PAT T E RS O N

58 HOW I DID IT

BY A D A M TAT U M

64 AOCA CORNER

Working behind the scenes in government affairs BY KRISTY BABB

Multi-Level Management

74 LEADING EDGE

How to run an operation that has a lot of different parts

Eliminating unwanted shop friction

BY A B BY PAT T E RS O N

BY LENNY SAUCIER

NOLN, VOL. 35, NO. 4 (ISSN 1071-1260), IS PUBLISHED MONTHLY BY 10 MISSIONS MEDIA, LLC, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804. COPYRIGHT ©2020 BY 10 MISSIONS MEDIA LLC. ALL RIGHTS RESERVED. NOLN CONTENT MAY NOT BE PHOTOCOPIED, REPRODUCED, OR REDISTRIBUTED WITHOUT THE CONSENT OF THE PUBLISHER. APPLICATION TO MAIL AT PERIODICAL RATES IS PENDING AT ST. PAUL, MN. POSTMASTERS SEND ADDRESS CHANGES TO: NOLN, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804.

BETH GALLIGAN

36 PROFILE

NOLN.NET

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April 2020

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855-879-9995 Shinn Buildings EDITORIAL

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Anna Zeck

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Matt Hudson

STAFF WRITER

Abby Patterson SPECIAL PROJECT S EDITORS

Nora Johnson, Jordan Wiklund C ONTRIBUTING WRITERS

Kristy Babb, Lenny Saucier, Adam Tatum

QuickPit (TM)

www.ShinnBuildings.com Car Washes

Equipment

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Chris Messer, cmesser@10missions.com AS S OCIATE PUBLISHER

Andrew Johnson, ajohnson@10missions.com ADVERTISING SALE S & MARKETING

Kyle Shaw, kshaw@10missions.com CLIENT SERVICE SPECIALIST

Jen George, jgeorge@10missions.com CUSTOMER SUCCE S S REPRE SENTATIVE

Shayna Smith, ssmith@10missions.com

ART AND PRODUC TION ART DIRECTOR

Zach Pate

GR APHIC DE SIGNERS

Mitch Bradford, Nicole Olson PRODUCTION ARTIST

Lauren Coleman

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ADMINISTR ATIVE AS SISTANT

Corey Steinhoff

HOW TO REACH US

571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of NOLN. Past issue single copies are $8. Go to noln.net/backissues Send letters to news@noln.net. For high-quality reprints or e-prints of articles in this issue, call 651.846.9488 or email reprints@noln.net. Opinions expressed in NOLN are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.

www.RothLubeTanks.com 1.888.266.7684 8

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April 2020

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ONLINE

VISIT

NOLN.NET TODAY

PODCAST

T HE N O L N P O D C A S T Episodes of The NOLN Podcast are live and can be found at noln.net/podcasts. You can also download them through Apple Podcasts, Google Podcasts and Spotify, as well as other platforms. You’ll find recent episodes about maintaining an exciting new franchise brand, as well as an in-depth discussion on launching a confident digital marketing campaign. Plus, check out the new weekly news roundup episodes. Be sure to rate and comment on the podcast on your favorite platform, which helps us reach you better!

BLOG

HYBRIDS HAVING A MOMENT

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

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

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N O L N NE W S Twice per week, NOLN sends out the latest news, strategies and keys to success straight to your inbox. Head to the website to sign up for the NOLN newsletter. Sign up at noln.net/subscribe.

N O L N . N E T/ B L O G

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UNSPLASH

There’s always a bit more to every story. NOLN’s reporters’ blogs have been expanding on what you see on the magazine pages. The Franchise 500 list has been released, and NOLN has all the quick lube brands and where they stand in 2020. Plus, hear from a professor at one of the country’s only dedicated hybrid powertrain programs about the trends in vehicle propulsion. That and more are all over at noln.net/blog.

NOLN.NET

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THE NEW NOLN

INTERVIEW SERIES A monthly video segment that covers the industryâ€™s most pressing issues, progressive operational strategies and inspirational stories

VIEW ON FACEBOOK OR BY VISITING

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EDIT LETTER

AS I WRITE THIS, HUNKERED IN

OUT OF YOUR COMFORT ZONE The opportunities, revelations and improvements that can only come from difficult times

my basement workroom that, amid quarantine, has become a makeshift office, I hear the surprisingly heavy pounding of my kids’ footsteps above me—all of them, eight feet total when you add them up, pacing, running, jumping, dancing, and anything else they can think to do to stave off the horrific boredom of being stuck at home with mom and dad for (gulp) a fifth straight day. It’s likely been far longer by the time you read this. These are surreal times. The present state of our lives didn’t seem fathomable a few months ago. But here we are; what are we going to do about it? That’s the question that keeps running through my mind, much in the same way it sounds like my 2-year-old is running above me right now: rushed, out-of-control, and … aimless. What are we going to do about it? Well, let’s give some direction to it, and start thinking of solutions. Our sole mission at NOLN is to be your trusted resource for the information and strategies you need in order to improve your businesses. And as we all deal with the myriad challenges presented by the COVID-19 pandemic, we’re more focused than ever on helping you and your teams during this stressful and chaotic time. We know you have concerns. We know many of you are reeling from the uncertainty. And we know there is no SOP or playbook to follow in a situation like this. That’s why we’re committed to helping you through it. Our team has already started to amass a wide range of content in various formats (go to noln. net to find it all, or to p. 18), and we’re not slowing down any time soon.

There’s already too much hysteria, hyperbole and misinformation out there. We want to focus on solutions, and we want to answer your questions. Please let us know what’s on your mind. Email, call, whatever you can do—but please do it, and tell us how we can help. We’re as focused as ever on pursuing our mission here, and the only way we achieve our goal is to help you hit yours. And you will. It’s one of the many reasons I love being part of the team that creates this content for you, our readers, the small business owners and operators who keep our communities and economy running. The unfailing, indomitable spirit you all carry into your businesses each day is motivating and inspiring. And I know it won’t slow down. I know we’ll get through this. Let’s do it together. Stay safe.

BRYCE EVANS

V P C ON T E NT & E V E NTS , 10 M I S S I O N S ME DI A

APRIL 2020

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BY T H E N U M B E R S

04.20

MORE THAN JUST OIL CHANGES This month’s topical feature story focuses on operators of multiple profit centers. Whether it’s tire sales, car washes or general repair, owners have a lot of options to tailor their business. Here are some numbers from the 2019 Operator Survey that show some different services offered by readers.

BRAKE PAD REPLACEMENT OPERATORS WHO OFFER AVERAGE CHARGE

% OF ALL SERVICES

55% $223.53 8.5%

BRAKE FLUID FLUSH OPERATORS WHO OFFER AVERAGE CHARGE

% OF ALL SERVICES

36% $88.87 4.3%

MINOR MECHANICAL REPAIRS OPERATORS WHO OFFER

67%

AVERAGE CHARGE

VARIES

% OF ALL SERVICES

16%

WHEEL BALANCING OPERATORS WHO OFFER

21%

AVERAGE CHARGE

$77.49

% OF ALL SERVICES

11%

SHOCKS/STRUTS OPERATORS WHO OFFER SHOCKS

51%

OPERATORS WHO OFFER STRUTS AVERAGE CHARGE

% OF ALL SERVICES–SHOCKS % OF ALL SERVICES–STRUTS

FIND OUT MORE

42% VARIES 3% 3%

Just a reminder that current and past Operator Surveys can be found on our website at noln.net/surveys. If you’re one of those operators who’s looking to jump outside of the normal quick lube business, maybe a lift purchase is in your future. The magazine has you covered with NOLN’s December story, “Your Guide to a Safe and Lasting Lift.” Check it out at noln.net/lifts.

APRIL 2020

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PODCAST

The NOLN

PODCAST SPONSORED BY

LISTEN TODAY BY VISITING

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AROUND THE INDUSTRY

ADAPT

SHOP LOOK

COURTESY TEXOMA PIT STOP

QUICK HITS

INDUSTRY INSIGHT

SHOP LOOK This operator built his shop to fill a service gap in a small town. PAGE 26

APRIL 2020

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I N D U S T RY I N S IG H T

WEIGHING THE COST OF CLOSURE While navigating essential and nonessential designations during the COVID-19 outbreak, shops must balance financial and health risks

THE FIRST STATEWIDE STAY-AT-

home order came down in California on March 19 amid the COVID-19 outbreak. Gov. Gavin Newsom signed an executive order for residents to remain at home to prevent the spread of the virus. New York followed with a similar order a day later. In reality, 100 percent of people wouldn’t be at home at all times. Residents could still leave their homes for certain activities, and the employees at those businesses were allowed to stay open. This reinforced the importance of which businesses are deemed “essential” and which ones are “nonessential.”

“The supply chain must continue, and Californians must have access to such necessities as food, prescriptions, and health care,” Newsom’s order said. Organizations like the Automotive Oil Change Association acted early to support the designation of quick lubes as “essential” so that businesses could remain open if they could safely do so. But across the country, shops still faced the difficult decision of staying open during a pandemic, as well as the inability to control the drop in business as communities hunker down and the economy slows.

What is Essential? Early in the week, as different local governments were adopting various orders or recommendations affecting essential business activities, the status for quick lubes wasn’t crystal clear. Automotive shops in general have been deemed essential. A Nevada state order to close non-essential businesses, for example, listed “auto repair services” as essential. Whether or not that includes quick lube facilities might be open to interpretation for someone not directly involved in the industry. “The Departments of Health issuing these orders aren’t parsing the

GETTY IMAGES

B Y M AT T H U D S O N

NOLN.NET

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xxxx 2019 fenderbender.com April| 2020 NOLN 197

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I N D U S T RY I N S IG H T

differences between types of repair and maintenance facilities that comprise the automotive service sector the way such an in-depth discussion might be relevant for a Bureau of Automotive Repair,” Joanna Johnson, AOCA’s policy director, told NOLN in an email exchange. “That said, however, they or their enforcement agents—who also cannot be expected to have industry expertise—may misunderstand the breadth of the automotive service sector required to provide necessary services.” That’s why the AOCA released a letter calling for a quick lube-specific designation as essential. The letter also urged operators to contact their legislators to clarify that definition. By March 19, federal guidance emerged. The U.S. Department of Homeland Security’s Cybersecurity and

Infrastructure Security Agency (CISA) issued a memo on essential critical infrastructure.

essential by including the reference to preventative maintenance services. As California issued its statewide order on March 19, it referenced that CISA memo as a way to identify essential business sectors that remained open.

I WANT TO DO MY CIVIC DUTY. MY OBLIGATION IS NOT ONLY TO MY EMPLOYEES, BUT TO MY COMMUNITY.”

Shops Face Tough Decisions Whether defined as essential or not, quick lubes remain in a precarious spot. Operators have to determine whether the cost of remaining open is too great when faced with slowed business. Different areas of the country are seeing varied levels of customer traffic, though the macro-level picture suggests a severe slowdown. Layoffs and unemployment claims skyrocketed over the week of March 16. Making things much harder for shop owners is the public health question: Does staying open risk expanding an

—Bob Seltzer, owner, Instant Lub

The memo includes, beneath the transportation and logistics section, “automotive repair and maintenance facilities.” This, to the AOCA, helped to reinforce the position of quick lubes as

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already serious virus outbreak? Nevada Gov. Steve Sisolak ordered the closure of nonessential businesses on March 17. It was part of a broader strategy that, put simply, is intended to keep people more than six feet apart. “The goal of this Initiative is to protect the health and safety of Nevadans by preventing people coming together unnecessarily, where people who have the infection can easily spread it to others,” Sisolak’s order said.

Making the Call That weighed on Bob Seltzer’s mind as he made the tough decision to temporarily close down his shop, Instant Lube in Sparks, Nev., to help reduce the virus’ spread. Seltzer is based in Las Vegas, where the massive gaming industry saw an unprecedented shutdown amid the

coronavirus outbreak. That signaled a serious public health risk, he says. “When you see every gaming machine in Nevada shut down, this is serious,” Seltzer says. The gravity of the outbreak is what led him to the decision to close. He says the business was in a financial position to be able to weather the temporary shutdown and make sure its employees weren’t left without help. For operations on much slimmer margins, Seltzer understands how difficult a decision must be. “I want to do my civic duty,” Seltzer says. “My obligation is not only to my employees, but to my community.” For him, that obligation is twofold. At the quick lube shop, it meant a temporary closure to help minimize contact between people. He’s also the president of Automotive Equipment

of Nevada, a supply company whose clients include critical operations like ambulance services and city fleets. That business remained open, albeit with lots of strict safeguards to minimize contact. “I’m really torn,” he says. “I’m shutting down one business and keeping another going.” While the situation has changed from day to day at local, state and federal levels, shop owners are no doubt facing the same difficult decisions. For Seltzer, the risk of spreading the virus outweighed the risk of business lost during this time. He says that people in his community will understand. “Our customer base is solid,” Seltzer says. “Thirty days from now, when this is over, the dust settles, our customers are going to come in and thank us.”

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APRIL 2020

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3/24/20 7:29 AM

A RO U N D T H E I N D U S T RY

REPORT: ICEs TO CLIMB TO

TRUCKING INDUSTRY PUTTING TELEMATICS TO USE

One expectation for enhanced telematics services in connected vehicles is the ability to better predict needed maintenance and schedule service more efficiently. The trucking industry’s fleet format is well-suited to give the technology a try, and it’s doing just that, according to a recent press release from truck manufacturer Navistar. The company announced a telematics platform that “utilizes a comprehensive, easy-to-use interface that creates seamless communication with dealers throughout the service process, supports all-makes fleets, and integrates vehicle data from more than 24 telematics service providers,” the release says.

One feature is what they call “advanced preventative maintenance,” which uses the vehicle data to create more accurate, custom service intervals for each vehicle. This should lead to “educate decisions” about scheduling and, hopefully, save some money, the company says. In the consumer vehicle world, it’s easy to imagine this sort of system working for fleets of rideshare vehicles or vehicles in a subscription-based service, both of which could grow as ownership models. It’s also easy to imagine this being a great scheduling tool for quick lubes, which could potentially fill a schedule in real time by connecting with vehicles that need service.

AUDI EV ALERTS DRIVER TO GET OIL CHANGE

As you well know, battery-electric vehicles don’t require oil changes. But why not give it a shot? That was the option presented to one Audi e-tron driver, according to Electrek. A message popped up on the driver’s dash display saying “oil change and inspection in 200 mi.” It’s likely that Audi’s periodic maintenance alert programming was simply copied over, oil change message and all.

The driver told Electrek that he found it a bit funny, though it’s a sign that the EV isn’t a fully matured product yet. The e-tron in question is approaching 10,000 miles. Electrek checked the owner’s manual for the recommended maintenance, which really just including checking everything. Depending on a quick lube’s service and retail menu, the e-tron could potentially get service on its brakes, tires and wiper blades.

Internal combustion engine cars and light trucks on U.S. roads will climb by 36 million between now and 2030, despite predictions of their rapid replacement by electric vehicles. That’s according to a new report from Lang Marketing Resources, an automotive market intelligence firm. The dominant ICE share of vehicles in operation going forward, recording an approximate 95 percent share during 2030, will generate robust aftermarket parts and repair volume in the U.S. for many years. “Peak ICE, the year when Internal Combustion Engine vehicles reach their maximum number, could arrive as late as 2035,” predicts Jim Lang, president of Lang Marketing and lead author of the report. Electric vehicles (battery electric vehicles and plug-in electric hybrids) represented less than two percent of the 2019 new vehicle market. Their annual volume will increase fourfold by mid-decade, accounting for nearly eight percent of 2025 light vehicle sales. EV volume will reach 2.9 million during 2030, double their 2025 share. The year of Peak ICE in the U.S. (when internal combustion engine vehicles reach their maximum number) will be determined by two factors: the annual sales mix of ICE and EV vehicles, and ICE vehicle scrappage. Peak ICE will not be reached before 2032 and, under certain circumstances, it could arrive as late as 2035. ICE cars and light trucks traditionally generate greater aftermarket parts and repair volume per vehicle than EVs. “ICE vehicle growth in the U.S. through 2030 coupled with their dominant VIO share beyond 2030 will generate robust aftermarket volume in the U.S. for the foreseeable future,” said Lang.

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36 MILLION BY 2030

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Nearly every automaker has direct-injection technology in their latest engines. The controlled bursts of gasoline spray directly into the combustion chamber are supposed to lead to more efficient burning and, thus, greater fuel efficiency. As NOLN has explored quite a bit, the early challenges for direct injection came with extra valve deposits. Now a new issue has emerged that presents concern about what’s coming out of the engine, rather than what’s inside. A Green Car Reports story says that a recent study suggests that direct injection engines produce more black carbon aerosols, which could add to atmospheric warming. The short-term “social cost” effects of the aerosols could outweigh the long-term emissions saved through efficiency, the study says. The story notes that while automakers like Mercedes-Benz and Volkswagen have tried to incorporate particulate filters into the exhaust system, that may reduce the fuel-efficiency gains desired in the first place.

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

APRIL 2020

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3/24/20 9:09 AM

THE NEW NOLN AWARDS PROGRAM NOMINATE IN 1 OF 3 CATEGORIES:

THE MOST PROGRESSIVE FACILITY

THE LEADERS PUSHING THE INDUSTRY FORWARD

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SUBMIT YOUR NOMINATIONS BY JUNE 15

NOLN.NET/AWARDS 24_AWARDS_0420.indd 24

3/10/20 10:27 AM

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

THE

PODCAST

T HE A D A P T P O D C A S T

DIGGING INTO DATA ADAPT has a series of stories all about protecting customer data, securing shops from cyber attacks and more. To get started, here is some basic information to jumpstart your research: What laws should I be aware of as a shop owner?

• 1990 Clean Air Act Amendments: Assured repairers the same emissions service information that franchised new car dealers receive. • 2015 FAST Act: Vehicle owners were guaranteed access to a car’s Electronic Data Recorder. For all other vehicle generated data, owners are at the mercy of automakers. • In 2017 the Senate unanimously adopted a bi-partisan autonomous vehicle data access amendment to the Senate autonomous vehicle bill. However, federal autonomous vehicle legislation was not enacted in the 115th Congress and the amendment along with the House and Senate autonomous vehicle legislation considered by Congress, died at the end of 2018. • U.S. Vehicle Data Access Coalition: The coalition has adopted a position in 2020 that the time for an advisory committee on vehicle data access has passed.

GETTY

To access all the stories in ADAPT’s data and security series, head to adaptautomotive.com/datatips.

DECEMBER 6–8 • NASHVILLE, TENN.

Check out ADAPT’s growing podcast episode list. A recent episode explores how one repair shop owner is getting involved in legislation by hosting a Congresswoman at his facility. In another two-part episode, representatives for an Oklahoma dealership network and a tech school describe how they both benefit from a public-private partnership. Listen to these and more episodes at adaptautomotive. com/podcasts.

A D A P T T R E ND R E P O R T Head to the ADAPT website to sign up for the ADAPT Trend Report newsletter to have the latest news, strategies and transportation trends sent to your inbox every week. Visit adaptautomotive.com/newsletter

J O IN U S O NL INE A D A P TA U T O M O T I V E . C O M A D A P TA U T O M O T I V E . C O M / F A C E B O O K T W I T T E R . C O M /A D A P T_ A U T O M O T I V E

Registration and hotel accommodations are now open for The ADAPT: Automotive Technology Summit. Head to adaptautmotive.com/Summit to learn more about the event, who can attend and the schedule of the two-and-a-half day event.

APRIL 2020

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S H O P LO O K

TEXOMA PIT STOP OWNER:

STORY FAMILY LOCATION:

MADILL, OKLA. STAFF SIZE:

5 SHOP SIZE:

2 BAYS AND CAR WASH

B Y M AT T H U D S O N P H O T O S C O U R T E SY T E XO M A P I T ST O P

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

COMING TO MADILL With the original shop based in nearby Durant, Okla., the Story family opened this Madill shop in 2016. Robert Story Jr. is the operator of the facility, which was a new construction project. “We actually tore down an existing restaurant in town and built an express lube with a car wash addition to it,” he says. They were looking to fill a niche in Madill, which didn’t have a dedicated quick lube facility at the time. He says they focused on treating customers well, and the community has responded. “Our goal wasn’t to go in and take business from anyone,” he says. “Our ultimate recipe is 10 minutes or less. It’s in, out, on with your life. And always be true to our customers.” The Story family attributes a lot of their success to having solid managers. Scotty Parrott at the Durant store helped train Leonard Beach, who came on to open the Madill store and has been a solid day-to-day presence since, Story says.

Beach became the Texoma Pit Stop manager. “As a family, we trust him to run and operate our business in the same way and fashion that we would,” Story says. “And for us, that’s extremely important in providing that good quality consistent customer service.”

CUSTOMER CARE The Texoma Pit Stop is a clean stone and brick building with two bays and a customer waiting area. Customers have the option to hang out in the lobby area or in their vehicles during service. If they choose the former, they can check out an array of hubcaps that adorn the walls. They can watch a bit of television, too. “We wanted to give the customers a clean, nice place to hang out, even though we knew they were going to be there for a short amount of time,” Story says. The grounds are set up with the car wash in back. Ideally, a customer might drive out of a service bay and right into the car wash.

SMALL FOOTPRINT, BIG EFFICIENCIES The shop area is good and bright for the techs to do their work. Story says they went for a full pit area to utilize that storage space and have solid catwalks for the techs. “Underground oil and storage tanks that are accessible from the basement,” he says. “Full stocking area for all bottom side material and parts that are needed to change oil.” There’s more storage in the employee break room, which contains a whole bunch of filters, Story says. Above ground, there’s very little clutter in the bays. Story says the techs like the tire gauge that drops from the ceiling, allowing them to check all tires with the same line. They also have access to a fully stocked pump stand, which helps put the oil products in one place. “We have a full pump stand that’s loaded with seven oil products which allows us to deliver oil toe vehicles in a clean manner,” he says.

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FROM THE SHOP

Taking your Shop to the Next Level How to create a coaching culture for management

A DA M TAT U M

Adam Tatum is director of operations for the Virginia Group, a Jiffy Lube franchisee with 11 locations. He has over a decade of experience in the industry with a proven track record of building customer counts and sales, as well as using innovative ways to bring a new look to the automotive field for both the customer and the employee. Performance comes from growing your business through people.

ATATU M

@VA LU B E . C O M

is ensuring that I am continually learning. You can do this by reading articles in this magazine, watching videos online or taking classes outside of your shop. Our industry is ever changing and to maintain a competitive advantage over your competition, you will have to adapt or get left behind. Many quick lubes, for example, are moving away from a basic oil change service to more specialized full-service options. When you do this, it will take more specialized technicians and managers to properly make these transitions work. Well, what do you do to sustain and build talent from within, rather spending higher wages to bring on these talents? You adapt to a culture of coaching, not managing. Take a moment and ask yourself two questions: Do you believe your shop has more potential than its current performance level? If the answer is yes, where’s the opportunity to harness that potential more often? Have you heard the leadership styles of “managing” and “coaching” being used interchangeably? If you understand the difference, then you all have worked for, or with, a manager who certainly was not a coach, and therefore ineffective. In a nutshell, being a good trainer is a function of managing that every good leader of others must be able to do well. To start, let’s consider some statistics from the Association for Talent Development. Eighty percent of the workforce who have experienced coaching say it positively impacts their work performance, productivity, communication skills, and well-being. Around 65 percent of those in a coaching culture are highly engaged. Only 36 percent of organizations offer coaching-specific training to new leaders. When you can keep your people engaged, you will see upticks in speed, performance and a higher likelihood of retaining these talented employees in your pipeline. You must grow the coaching skill, as it’s not always something that is just there. With this in mind, Here are four ways to improve your abilities in this area:

Be a motivator, not a commander. Motivating others to do something is the primary goal of coaching. Coaches show employees they care by letting them know the value in their work and helping them develop self-confidence. You must learn how to balance providing direction while remaining a motivator. This approach will create productive and engaged employees

because they’ll start to care about their jobs and your shops. Teach and train them to be the coach.

Support your team and make them the coach. A part of training a coaching into your culture is filtering it down to the technician level. Support your team and allow them to set the standards for you. There is a very successful franchise in the Southeast that has built this into their culture. The crew takes a new employee and shows them the ins and outs of expectations, as well as the training. These employees care about their shop and those people working in it. How many of you can say that you have this in your shops? Or are they waiting for you to train this new guy in their way? Make them want to do good work Unfortunately, many times, “managing” employees means solving their problems for them. Poor employees often rely on the boss to solve their problems because that’s what they’ve been trained to do, regardless of whether that training was intentional or not. Effective coaches guide their employees in their work and then get out of the way and observe. These managers trust their employees to make smart decisions. When employees feel trusted, workplace satisfaction increases, the job gets done more efficiently, and the quality of that work improves. Finally, try to create a reward program. Something as simple as a gift card, lunch or a certificate for doing good work will be appreciated. Make communication a key. Culture and climate in a workplace are key pillars to employee motivation, especially Millennials. Being heard is something important to that generation. Coaching must be a two-way communication process. You provide feedback to the employee and they can use this opportunity to also give feedback. Employees are more likely to stay in your organization if they feel that their voice is being heard by you and their management. By integrating more coaching, you are allowing your managers more of a role in identifying employees with leadership talent. From the keys above, focusing on coaching and supporting employees has great benefits for your organization and your employees. You will find that teaching them to be more involved in your training and leadership standards will result in better employees, less of those costly claims and leadership from the ground up, not the top down.

LUCAS MOORE

ONE THING THAT I HAVE DONE MY ENTIRE CAREER

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JULY 20-22 | SAN DIEGO

BE A LEADER IN QUICK MAINTENANCE.

Join NOLN’s Exclusive Event!

• Connect with your high-performing peers • Gain insight from the industry’s leading suppliers • Uncover the strategies and resources to build your business

You’ll be amazed at what you can accomplish in 48 hours

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□ BLEED □ LIVE AREA

NOLN 29

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SPREADING THE

LOVE THE PEOPLE, PLACES AND PRACTICES THAT MAKE SUCCESSFUL PROFIT CENTERS

B Y M AT T H U D S O N

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GETTY

A car wash is a common one. Maybe it’s a truck rental or a general auto repair bay. Heck, it could be an alignment machine stuffed into the side of the shop. These could all be secondary profit centers to the quick lube. In times of strained car counts and longer drain intervals, many operators are looking at ways to pick up an extra buck— or hundreds. Different organizations can define profit centers in different ways. Sure, the retail additive display in the waiting area could be interpreted as a profit center, but this story focuses on the bigger parts. The quick lube is the beating heart profit center for most readers of NOLN. A full 84 percent of respondents in the 2019 Operator Survey said that more than half of their revenue comes from quick maintenance services like oil changes and basic fluid exchanges. At the core of an operator’s desire to add profit centers is the idea of complement. The ideal addition doesn’t detract from the core quick lube business. It might even drive customers from one profit center to another. This article is less about choosing your profit centers and more about maintaining a healthy balance between them. To keep your multiple profit centers from getting too unwieldy, focus on three main aspects: People, places and processes.

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PIT STOP OIL AND LUBE started in 2002 in east Texas. When owner Aaron Porter looked to get into quick lube ownership, he knew right away that he wanted a diverse operation. The first shop he bought had an attached car wash and a truck rental service built right in. “I think they complement well,” Porter says. “Car washes aren’t huge profit centers, but in my opinion, anything you can do to get traffic on your lot is going to help complement your core business.” Pit Stop expanded over the years into new locations and added a general repair division to the company. By 2019, the network included seven quick lubes, five car washes (three attached to quick lubes), one full-service repair shop and the truck rental business. Porter sold to Grease Monkey in late 2019, but he shared his career experience with NOLN. Porter says that the diversified operation sometimes tested his management skills, but it can be a great fit for the right market. “People want the one-stop shop experience when they can get it,” he says. “As long as that doesn’t detract from your core business, I think that if you can do that without adding a whole bunch of expenses, then it’s always a win.” Lending expert advice for this story is Bryan Stasch, who is the vice president of program and content development for the Automotive Training Institute.

People Division of Labor Knowing how to manage your people in a diversified operation is crucial. It’s the largest expense of doing business, so finding efficiencies among profit centers is a great way to keep overhead low. But spread people too thin, and the product suffers. “You’ve got to be willing to make the financial investment in adding that staff,” Porter says. “But everybody has got to maintain that focus. It would probably be on the shop manager’s shoulder a lot to make sure that they’re constantly reminding staff that we’re adding this new repair bay or service, but we cant’ even let our quality slip with our core business, which is the quick lube.” Trouble can form when a customer service employee at the front desk is handling quick lube customers and truck rental customers at the same time. Stasch has seen shop operators add a profit center that seems like a turnkey solution but just ends up splitting customer service in half for both. “It usually just makes your people at the front counter very inefficient,” he says. Porter said his truck rental division did well enough in business that he dedicated a full-time employee to that role. By clearly defining the roles, the employees weren’t moving back and forth between centers. “If you’re providing bad customer service in your truck rental because you’re understaffed and you’re not running it as good as your quick lube, then it makes your quick lube look bad,” Porter says.

A Little Cross Training While the daily roles need to be clearly defined, that doesn’t mean skilled employees can’t be ready to work in multiple centers. Stasch says that having people trained for more than one profit center provides a backup plan if somebody needs time off. It’s also a training ground for future managers.

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PERCENT OF OPERATORS WHO OFFER:

CAR WASH

36% 19% 2009

2019

WINDSHIELD REPAIR

15% 18% 2009

2019

TIRE SALES

16% 36% 2009

2019

WHEEL ALIGNMENT

7% 2013

43% AMONG QUICK LUBEPLUS OPERATORS (2015)

21% 2019

(SOURCE: NOLN OPERATOR SURVEYS)

“Training specific to roles—but cross training roles so somebody can step in if somebody is not there. That’s also your growth. That’s your next technician or next advisor’s succession plan,” he says. Employees Know Best Despite the division of labor, all employees need to be knowledgeable about the other profit centers and able to refer customers to the right person. Customers will be quickly frustrated if a shop tech can’t help a customer get to a truck rental employee or vice versa. “I think the biggest thing is communication with your team,” Porter says. “To make sure they don’t view that profit center as someone else’s problem or someone else’s job.” Porter’s employees were trained on the full scope of the business. But he says he still made it a point to let them know that at the end of the day, Pit Stop is a quick lube business first. “It’s teamwork for sure in our industry, but it’s making sure that everybody understands that this is the main thing,” he says. “And it’s going to stay the main thing.”

Places Eyes vs. Stomach Profit centers most often represent different aspects of one location. In the quick lube world, it’s more common that multiple profit centers might include multiple shop locations under a single ownership. While 51 percent of respondents in the 2019 NOLN Operator Survey said they just operated one shop, the number of multi-shop operators is growing. To consider adding this kind of profit center, Stasch says that operators should ask themselves hard questions. “Is it an ego thing, or is it a strategic plan of you doing business?” he says. If it’s the latter, then Stasch offers a guideline to make sure that adding a location doesn’t simply create two stores operating at 50 percent. “When we start talking about expanding locations, my first question is: Are we at 75 percent capacity?” he says. “If we’re not at 75 percent to capacity, I have a whole lot more room to work with the one store without doubling the cost of being in business with store No. 2.” If the pieces aren’t there, operators would be smart to give it some time and set up long-term success over the shortterm rush. “We’ve always been slow and steady on our growth, and were able to maintain,” Porter says. “We didn’t get too overzealous in growing too fast or just adding too many repair bays at once. I’d like to get as much as I’d like to handle with the staff I had before adding anybody else.” The final part of this, Stasch says, is that the process needs to be duplicative in order to roll it into another location. The quick lube industry is great at this, but managers need to be strong leaders to make sure that the process is being replicated. Equip Smarter For any profit center, place also refers to the things that fill it.

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Research by the operator reveals the basic startup costs. After real estate, the big ticket items here will be equipment—specialized equipment. Some areas offer more variability than others. While it’s tougher to incrementally start a car wash operation, mechanical repair is one area that can be closely tailored to what you plan to offer for services. Porter had his mechanical repair space for three years before starting to form that part of the business. “We bought that in 2009, and we didn’t start doing any repair work until maybe 2012,” he says. “It may have been a small amount. In 2012 we went ahead and started investing in equipment, getting AC machines and alignment machines. And really trying to get into it a little bit more.” Be sure to buy equipment and tools with a certain model in mind. In Porter’s case, the model for general repair still relied on a timeliness factor. No engine overhauls or things like that.

“I think the biggest thing is communication with your team. To make sure they don’t view that profit center as someone else’s problem or someone else’s job.” —Aaron Porter, founder, Pit Stop Oil and Lube “As a pure quick lube operator, at least for me, it was important to set myself apart and maintain that speed,” he says. “That’s kind of our core. We’re quick lubes. So it was my thought that if you get too far away from that, you get to the point that you’re no longer a quick lube. You’re a normal repair shop that does oil changes.” Plan Ahead No matter the operation, make sure that you’re working with your vendors to see past the equipment sale. Quick maintenance down the road is imperative to avoid costly downtime. “Once you get into the repair side of things, and car wash as well, you need to make sure that whoever you’re buying equipment from, whether it’s car wash equipment or repair equipment, that you’re not only getting the best deal on it, but who in your area can service it quickly and so you’re not having a whole lot of downtime?” he says. Get familiar with your local market for maintenance providers either from the manufacturer or from a third-party. This is especially important for rural operators who need to estimate their repair time if something goes wrong.

Practice Creating a Cycle The “practices” category includes anything that makes multiple profit centers work toward their namesake: profit. One of the core ideas here is that one center might refer customers to another, which in theory makes two sales with one customer. Porter found this to be true with his truck rental business. It was never the main way to meet new customers, but he says that it helped drive more customers to his quick lube. “You move to a new town, and one of the first things you have to do is go drop your rental truck off after you unload it,” he says. “That was a way for us to meet new folks in the community and really try to wow them with good customer service.” If employees are trained for that cohesive company culture, then the customer will be more easily referred to another part of the business. A smooth rental truck operation would indicate that the quick lube would be just as good—or better.

Setting Expectations Owners at the top of multiple profit centers, shop locations and everything else can’t have their fingers on the pulse of every aspect of the business. To achieve that duplicative, successful business model, clear expectations need to be set and communicated to managers and staff. “But in order for them to know how successful they are, they have to be able to measure that success. It’s just important in

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DEFINING PROFITS AND COSTS

GETTY

ces

any aspect of the operation that you have measurable goals,” Porter says. “That makes it a lot easier to manage that, if everybody knows what the expectations and the goals are.” Stasch says that expectations need to be tailored for different roles, too. Staff members who have some role in the flow and volume of daily work should have clear performance goals that are needed for the business. That’s the measurable part. In the general auto repair world, where Stasch is an expert, the customer service advisor is often the first point of contact with customers. They work the phones and greet people at the desk. This is a crucial cog in the machine, Stasch says. “Those front counter people who meet and greet customers, who answer the phone, have more control over profitability than the owner does,” he says. “Make sure they know how many cars per day do we need? How many gross profit dollars do we need? What’s the average repair order per car?” In the quick lube world, this might be a role more suited for the shop manager, who could be helping as a hood tech and conducting the flow of work. That’s the person who’s watching car counts throughout the day or tallying service tickets. Managerial positions become more important in the diversified operation, because they’re keeping eyes on the main profit line that supports the other centers. “If that quality suffers, it’s not going to be very much longer to worry about the repair side, because your business will be gone,” Porter says.

PROFIT CENTERS — The profit center is a part of the business that directly contributes to generating sales and revenue. The different centers in a particular shop depends on how it’s set up. • Quick maintenance services • Tire sales • Car wash • Truck rental • Wheel alignment • Retail parts (wipers, additives, etc.)

COST CENTERS — Cost centers still help a business and, ultimately, its bottom line. They’re focused on efficiency and making the operation run smoothly. In larger operations, a human resources department could be a cost center. In a quick lube organization, a cost center could be: • Digital marketing or blogging • Ongoing training or professional development program • In-house bookkeeper • Advertising (though some view it as a profit center)

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Keeping it

Family in the

Why this shop owner says working with his wife and kids has been the best time of his life B Y A B B Y PAT T E R S O N

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Employee Relations Austin, Devon and Jeffrey Hayes (from left to right) are brothers who work at the family quick lube.

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Driving around a town, a lot of independent signs will read, “family-owned and operated,” where some of these businesses have run through three generations. Some of these businesses have family in ownership with mainly outside hires, but some of them have the entire family as their staff. For Jeff Hayes, having his family work for him was an ideal situation.

“Your values for the business are also in them,” Hayes says. “It’s going to be the way you want it done.” Hayes has been in the quick lube industry since 1988, first turning wrenches for his uncle up in Buffalo, N.Y., and he knows the ins-and-outs of the quick lube business. He started off making $4.25 per hour as a technician and worked his way through the industry into every position imaginable. He rose to become the vice president of operations for North Florida Lubes, overseeing 65 stores in the state. When the company was sold to Take 5 Oil Change, he stayed on for one more year before leaving the position in 2018. With all of his experience and connections, he’s been able to give those same opportunities to his sons—Devon, 25, Jeffrey, 18, and Austin, 17. Winners Express Lube is the result of those efforts, and it’s Hayes’ home shop. When Devon was 15 years old, Hayes brought him in to work at a shop close to their home as his first real job. Devon, instantly fell into his role, eventually going on to become an ASE-certified technician. Now, he wants to manage quick lubes like his old man.

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WINNERS EXPRESS LUBE OWNER:

JEFFREY HAYES Professional Development The whole Hayes family has worked at Winners. Each Friday, they gather for bay review meetings. (Austin, left, and Devon Hayes)

LOCATION:

LEEBURG, FLA. STAFF SIZE:

4 SHOP SIZE:

1,000 SQUARE FEET NUMBER OF BAYS:

Family Affair Jeff Hayes took his sons into the shop as teens. They caught the bug and are interested in the industry. (Left to right: Austin, Devon and Jeffrey Hayes)

“I could see all of my kids running quick lubes,” Hayes says. In January 2019, Hayes and Devon opened up Winners Express Lube in Leesburg, Fla. Recently, he’s also jumped into a role as district manager for Road Runner Express Lube back with his old friend and mentor, Brian Fowler. Currently, Hayes is deciding whether or not he’ll have time between both jobs. And the decision may potentially weigh with the possibility of passing the store onto his son, Devon. With this in mind, Hayes’s overall goal for the future is to get a quick lube for each one of his sons, and oversee their operations. But first, it starts with getting them on as quick lube employees.

COURTESY JEFF HAYES

Going With the Inside Hire Hayes says his boys always had an interest in what he did while they were growing up. He’d come home every night after a long day of work and talk about his day. They always wanted to see what dad did for 15 hours per day, as Hayes puts it. So, when the boys were old enough, he looked to give them an opportunity in the business without just handing it to them. You might think hiring one of your children for the job would

AVERAGE DAILY CAR COUNT:

16 TICKET AVERAGE:

$63

lead to some trouble, but Hayes says it’s the opposite. When asked why he hired his kids instead of regular employees, he said he knows and trusts them. He knows they aren’t going to call in sick and they ride with him to work every day, so being late isn’t an issue. He wouldn’t have hired them on if he knew they couldn’t get the job done. “Teach them, give them the opportunity, and you’ll know within two days if they are made for it or not,” Hayes says. Nina, Hayes’ wife, also joined the business. She’s in charge of camera reviews, which involves watching car counts and service time, as well as making sure all of the steps are followed and seeing that safety procedures are executed. Each Friday, the family has a safety meeting to go over the footage and see where they could improve. Hayes says that extra set of eyes has helped them with their efficiency significantly. It became such a hit, Hayes’s friend, Fowler, hired her on to do bay reviews for North Florida Lubes here and there. The only outside hire Hayes went with was a service writer. Devon happened to recommend his old assistant manager, so Hayes brought him in and hired him on the spot. Even though

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he had multiple people he could choose from that he knew and had experience with the company, he trusted his son’s judgement. The saying holds true: it’s not about what you know, it’s who you know.

Working Together Working for your dad does have its perks: Hayes buys his family lunch every day and they get a free ride with him to and from work. Other than that, Hayes tries to treat his sons like any other employee. When his son, Devon, is at work, he calls Hayes by his first name instead of “Dad,” just to keep things more professional. While Devon works as the full-time manager, Jeffrey and Austin work at multiple locations on the weekends. Austin helps out with changing cabin filters, tires, and other smaller jobs, while Jeffrey is in charge of courtesy and waving signage outside. When it’s busy, he has Jeffrey help out on tires, wipe down vehicles’ windows and make sure everything is stocked and ready to go.

“I could see all of my kids running quick lubes.” —Jeffrey Hayes, owner, Winners Express Lube

Not only has working with his boys been effective, but it’s also been the best time of his life. Hayes says the hour-long car ride to and from work—the deep conversations and goofiness involved—has been so much fun for him. “When you work with your kids every day, it’s awesome,” Hayes says. And Hayes isn’t the only big fan of his kids working in the shop—so are customers. He says Jeffrey is always the one getting the good tips. “When people hear that these are your kids working on their car, they love it,” Hayes says. “They love family businesses and love that we are working together.” It hasn’t always been easy. The trust and fun between them is there, but when it comes to managing and training, Hayes says it’s definitely harder. “It’s a patience factor,” Hayes says. “You know what your family can and can’t do, and pushing them to do out of their comfort zone, it’s harder to do. It’s not as hard with a regular employee.” When dealing with a regular employee, Hayes says feelings

aren’t the first thing that comes to his mind, but with your kids, the “dad instinct” always wants to kick in. “I give them the praise they need when they deserve it, but also kick them in the butt when they need it,” Hayes says. Through it all though, he says you have to keep it fun. Hayes says he’s a firm believer that, for every criticism, you have to give two to three positives. From this, he says they feel appreciated, they work harder, and they feel better, too. He’s learned a lot on the right balance of managing and parenting. “When it’s time to play, play. When it’s time to work, work,” Hayes says. “Your family needs to know that those times need to be dedicated.”

Preparing for the Future With Hayes’s sons working alongside him at the quick lube, they are already at an advantage, knowing the business more than most managers do—he has been grooming his boys their whole lives for this. On the other hand, however, he doesn’t want to force them into it. Hayes wants his kids to be able to feel they can take whatever path they choose. Jeffrey has Asberger’s, and with that, Hayes says Jeffrey’s not sure if this is what he wants to do in the future, so he makes sure not to push him. He gives him the opportunity, and from there, he can choose on his own. “You have to give them an out without an ultimatum involved,” Hayes says. Even if they don’t want to be a part of the quick lube business in the future, Hayes says his boys will have what it takes to run any kind of business with the training and skills they’ve attained. Just by working with their dad in the shop, Hayes says he’s training them for the real world. “They know I will take care of them and that I’m setting them up for the future,” Hayes says.

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PI T STOP

ADVERTISING ADVERTISING VERSUS MARKETING

They might be more different than you think, and learning the difference between the two can help a shop excel at both ADVERTISING VS. MARKETING: WHAT’S THE DIFFERENCE? Is there even one to point out? The answer may surprise you. According to Dictionary.com, marketing is the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling, while advertising is the act of calling public attention to one’s product, service, or need, especially by paid announcements in media. So, in essence, paid advertising is just a small part of the whole marketing arena. This is where the confusion sets in. Many shops think marketing is paid advertising, which involves unloading their pocketbooks to get their name out there, but that’s just not the case. Not all marketing needs to cost money, and if you look at it this way, you can save money and put your energy toward more cost-effective, mostly free, strategies. Bob Coleman, owner of RC Marketing, LLC, has been a marketing consultant, specializing in helping the automotive industry for about 20 years. Throughout his career, he has helped many shops on the most effective marketing strategies. Now, he’s here to help readers like you market smarter, not harder. A S T O L D T O A B B Y PAT T E R S O N

Advertising is one part of a larger marketing idea. Marketing is the business process of creating a business relationship and satisfying your customers. Marketing is everything from making your store look nice, to customer service, and social media. All of these things that get you business and help retain customers. Advertising is just a part of this. It’s paying to get the word out: paying for Facebook ads, Instagram ads, all targeted at an audience. So, marketing is everything to bring in

customers, while advertising is paying for a promotion to bring in customers.

You need to have a unique experience for the customer so they don’t want to look anywhere else. You want to make it very easy for customers to choose your business with great reviews and having customer touchpoints—any way a consumer can interact and communicate with a business—online. Make sure you have your business’s Google and MyBusiness

DEFINITION: The act of calling public attention to one’s product, service, or need. • Paid • Hard-selling techniques • Brand-focused • Short-term

listings are filled out, including as many pictures and videos as possible. Same goes for your shop’s Facebook and Twitter business page—you want your social media pages to be active and engaging for customers. They are going to choose the first place they see that has great reviews and lots of information.

You don’t want to be selling to a customer all the time or they are going to be turned off. It’s kind of like a magazine, you have to have a variety. You have to have interesting content that keeps them coming back for more, while throwing in a couple advertisements here and there. Owners can make a mistake with marketing and advertising by not targeting the right customer in the right place. Sometimes, you want to have an ad on social media that you

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BOTH

Create and keep customers

MARKETING

DEFINITION: The total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling. • Not paid • Soft-selling techniques • Buyer-focused • Long-term

pay for to reach more people. Pay to boost the post. This is just a simpler, cheaper form of advertising for your business. Even better, make a social media ad and target customers in your demographic.

The best way to market your business is through social media, reviews, and optimizing your website to make it convenient and relevant as possible. Even sending out emails, giving away coupons and stickers, writing blogs, maybe even having a free gift every holiday or having a coupon program. It’s much easier to retain a customer than get a new one. Overall, you want to make sure you are getting good reviews and are keeping up with your online platforms. You have to keep up with all social media, making sure it’s accurate and up to date.

IDEAS FOR ADVERTISING & MARKETING Here are some ideas for your marketing & advertising strategies ADVERTISING • Boost a post on Facebook or Instagram • Create a paid Google Ad • Utilize pay-per-click • Have banner ads on other business websites • Pay for SEO keywords on your site

MARKETING • Start a blog • Post a poll on Facebook • Give away goodie bags • Create an engaging website • Add pictures and videos to Instagram Stories

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E D U C AT I O N + T R A I N I N G

SOMEHOW, I MANAGE This operation shows how to set up managers for success, and how those in the role can make a big impact B Y M AT T H U D S O N

OPERATORS KNOW THAT

different markets have different hiring pools. Finding the right person to manage one or multiple shops takes time—time to find candidates, time to train and develop them and time to try out different people in those roles. The operators of Missouri-based Charlie’s Fast Lube know this well. The family-run business has been hiring and developing managers since it started as a tire and automotive shop in 1980. In around 1990, a fast lube component was added to the business. Today, there are seven Charlie’s Fast Lube stores to complement the five tire and auto shop locations. Jason Glueck’s father Charlie started the business, and it’s now in the hands of Jason and his brother. Like any experienced operator, he knows that an effective manager is essential to day-today success. Glueck has experienced the grind of finding and developing the manager position during his 25 years with the company. And he’s also seen what happens when the right person takes the job. Charlie’s Fast Lube has found that in its district manager.

“Brian Hahs is a guy that’s been with us now 11 years,” Glueck says. “He started off as a store manager, and he’s now a district manager over those seven lube centers.” Glueck says that Hahs’ success has translated into better business for the quick lube. But what exactly is he doing to be an effective manager? And how does Glueck set him up for success?

First, The Search Charlie’s Fast Lube is not immune to turnover at any position. It can take a few times to find the right manager, but when hiring, Glueck says he’s looking for an ability to handle person-to-person interactions well. “You’ll go through three of them before finding one to stick,” he says. “We try to look at the people skills more than the sales skills. We can teach them the process. We can teach them to sell, but if they can’t talk to customers and they can’t deal with employees, then they’re not going to last.” Hahs has been in the district manager position for about seven years. But to get there, he proved himself as an effective store-level manager at the Sikeston, Mo. shop.

During that time, Glueck says that Hahs set the example for the future standard of a Charlie’s Fast Lube store. Here are some examples of Hahs’ impactful work.

His Shop Reflected the Customer’s View Shop owners should look for attention to detail in the work of prospective managers. Hahs ran a tight ship in Sikeston. The small details, which can get pushed aside on occasion, were always in order at that location. Glueck says Hahs ran the cleanest shop in the network. The techs were always in clean uniforms. The windows were clean, for heaven’s sake. Glueck believes that it’s Hahs’ approach that led to success. He saw his operation from the customer’s point of view. “How the customer views what you do is very important as well,” Glueck says. “It’s not just about us and where the ticket average is going to be. It’s how the customer is going to perceive it.” The ability to rein in staff to make good on those details requires a stern hand at times. It’s often a personality

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trait of a good manager to find that line between respectful sternness and overbearance. They must get results while maintaining the faith of staff, and that’s usually done by reaching a common goal. “Some of our best managers are the guys who are pretty stern with how they do their process, but the guys respect it because they know where they’re at,” Glueck says. “The ones who are a little more wishy washy, they struggle sometimes to keep people, because everybody’s not on the same page.”

SOME OF OUR BEST MANAGERS ARE THE GUYS WHO ARE PRETTY STERN WITH HOW THEY DO THEIR PROCESS, BUT THE GUYS RESPECT IT BECAUSE THEY KNOW WHERE THEY’RE AT.” —Jason Glueck, co-owner, Charlie’s Fast Lube

He Was Identified for a Big Project Staying on top of business as the Sikeston store manager got the owner’s attention for a bigger role. Hahs worked with then-owner Charlie Glueck to put a more precise process down on paper. There had been some formal processes in the past, while others were more informal. Hahs worked to change that. Everything from customer greetings to oil recommendations to add-on sales pitches and the actual service were analyzed and made formal. Before, techs might have asked about additional services sometimes. With a formal process at hand, there’s a requirement to make recommendations as needed.

“We were set up to do the extra services like transmissions, power steering, differentials, cabin filters, et cetera, but there was no teeth in it, so not much extra was being sold besides the conventional oil change,” Hahs says. So when maintaining car counts became more challenging, The shop’s process helped identify stronger ticket sales within their current service offerings. “Without a process, without the way to find those 30, 35 percent who buy other services, other things that happen on a car,” Glueck says. “That’s where your ticket average comes from. I can’t do employee incentives and benefits and things like that if you’re just changing oil.” The best managers often take on roles that are larger than their positions. In doing so, they make positive changes company-wide.

Those Past Efforts Produce Results Today In early 2020, at a Charlie’s Fast Lube staff party, three of the seven store managers received five-year plaques. “In the lube business, that’s saying something,” Glueck says. There are always hiring challenges in different markets, but Glueck is proud of the work and retention that’s taken place in the Charlie’s shops. Thanks to the work of Charlie Glueck, Hahs and others who helped nail down the Charlie’s Fast Lube process, add-on sales grew. Sales of premium oil changes have grown as well to become the majority. “We got to work selling these oils and soon had our premium oils at 65 percent of all our oil changes,” Hahs says. “We were way ahead of our time, but it raised our ticket average considerably. We now sell 75 percent to 78 percent premium oils.” Boosting the ticket average and

CHARLIE’S FAST LUBE OWNER:

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overall sales helps boost company revenue, which allows for the incentive program, which retains and recruits managers. It’s a cycle. The manager is a part-owner by proxy, taking a piece of that leadership role when the business gets too big for one person to manage. Glueck says that it isn’t long before the owner can’t wrap their arms around the scope of business. There’s a lot of autonomy at the store level or the district level. Managers need to be able to handle business. Hahs demonstrated this by running a tight ship as a store manager. That work was identified by the owner, who worked with Hahs to develop the company’s process. “People don’t care that much about the oil change itself, but they remember how they felt when they pull out of the shop,” Hahs says. “If we can put a smile on their face because of how they were treated and they enjoy the free wash, they’ll come back.”

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C A S E S T U DY

TIME IS M O N E Y. The idiom is as fundamental in the quick lube world as the oil itself. Optimize bay time and you can increase car counts. Increase car counts and, well, you’ll be doing just fine in this business. But the constraints of space and time have their limits. Oil must be drained. Services must be checked and double checked for quality. On a good day, cars must wait in line. At a certain point, time dictates another part of the business: capacity. Sure, operators would love to have exponentially larger car counts. But customers don’t see it that way, particularly if there’s always a line to slog through. “What’s your point where the customer says, ‘I just can’t wait longer than 30 minutes?’” says Michael Meuret, co-owner of the Einstein’s Oilery network in Idaho. Operators have variables with which to play. Adding labor can help with speed or overcrowd a bay. Adding a shop is an expensive proposition. How can those forces be balanced? Meuret and his team have considered these questions and have a case study in capacity management.

The Challenge Think of the most steady times of the week at your shop. It’s probably between Thursday and Saturday, 10 a.m. to 4 p.m. or sometime nearby. How long is the average customer waiting? One challenge is always to get a quicker experience for the customer without sacrificing quality. But that’s just scratching the surface. More specific to your operation, the real challenge here is how you can manipulate your variables to gain speed. “In those times, if you can’t move those cars or keep them under a half hour wait, you’re probably going to get to a point where you’ve got to do something differently,” Meuret says. You can shift staff or add staff. Add a bay or add another location. Improve your process to reduce service time. Each shop has its own variables, and Meuret says there are a few things to consider. The Solutions Labor Up Meuret says that some operators might look at him sideways when he schedules at least a dozen people for a busy

two-bay shop. That’s two pit techs for each car, two hood techs for each bay, two running customer contact in the line and two more doing courtesy services in that queue. “On a busy day, we bring enough personnel and do enough things in advance as far as queuing the car that once you’re on bay, it’s five minutes,” Meuret says. “The customer doesn’t feel that they got any less because they were receiving all the attention in between while they’re waiting.”

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EINSTEIN’S OILERY OWNER:

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40-50 TICKET AVERAGE:

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Counting Cars If customers are waiting longer than a half hour, Michael Meuret knows something needs to change at the shop level.

To accomplish this, Meuret pays close attention to his process to make sure there aren’t bottlenecks with that many people. Management must keep a sharp eye on that efficiency. But while his labor cost might be a bit higher, there’s nothing like a smooth operation to keep customers happy. “I’d rather pay a little bit more in my labor costs in order to create a higher top line and, ultimately, a better bottom line,” he says. “While you might be losing some margin on your labor cost, you

obviously just increase volume in gaining margin in your other fixed costs.” Consider Options for a New Locale Expansion is a good thing, as long as the operation is ready. Meuret’s 30-minute rule is a factor that led him to consider adding a location, though it shouldn’t draw car counts too much away from the first shop. If you’ve manipulated the variables in one shop and customers are still waiting too long, then it might be time to consider

another location. Of course, competition sometimes dictates this as well. “I’ve opened some locations that are taking 30 percent from existing locations,” he says. “Our intent in that expansion wasn’t necessary to remove cars from shops that were too busy, but there were markets that were growing, and if we didn’t move into those markets, our competition likely would.” Einstein’s has expanded to 12 locations in the same number of years, and some are in close market quarters with each

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C A S E S T U DY

other. But the growth has been sustainable for the brand. Which KPI to Chase? There’s a philosophical debate over which key performance indicator shops should chase: car counts or ticket averages. It’s baked into the time-as-capacity idea, because the theory is that higher car counts typically mean quicker service times. Higher ticket averages often mean longer service times (and lower car counts). The debate intensified as car counts have suffered across the board for most of the industry. Which maximizes profit? For Meuret, the core of the business is the quick, simplified service. “I think a lot of people are trying to offset longer oil change intervals and drops in car counts for a variety of reasons,” he says. “They’re trying to

Higher Quality By focusing on quality oil sales, Einstein’s Oilery shops sell more higher-tier oil changes. Additional services make up a small amount of total sales.

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supplement with ticket averages and supplemental services, but I think you’re ultimately reducing car count even more.” It’s always going to be a balance, because techs can still recommend additional products that will help customers. But if the customer is the focus, Meuret says that the short service time should be as well.

The Aftermath Einstein’s Oilery shops offer additional transmission, radiator and other services, but Meuret says they account for less than 15 percent of sales. There’s still room for a quality ticket average. That’s come in large part from the types of cars that are more often coming into the shop. Newer vehicles are more often coming along with more specific manufacturer recommendations.

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“We’re at a point now where so many cars are requiring full synthetic oil and customers opting for high mileage oil,” he says. Those synthetic oils have grown to be 75 percent of oil sales, and it has helped keep his operation’s tickets strong, even though car counts are the priority. “I understand it’s hard. You’ve got to incentivize employees to offer your products and services,” he says. “But that’s not your purpose. That should just be a byproduct, in my opinion.” Customer time underpins Einstein’s commitment to car counts as well as its capacity and expansion strategy, and it has worked as the company looks to expand its geographic reach.

The Takeaway If the system can handle it at the same level of quality, there isn’t necessarily a

car count limit to a shop’s capacity. “I don’t know that I’ve ever reached a capacity at any shop in over 23 years,” Meuret says. “And I’ve had shops that get up to 60, 70 per day.” While there isn’t a limit to a shop’s appetite for cars, the limit lies in the customer’s appetite for wait times. An expectation forms, and retention is earned when a customer expects to get in and out in a reasonable amount of time. One of the big secrets here is that Einstein shops really focus on maximizing the time before the car reaches the bay, and employees are doing that role all day. Then the actual bay time is minimized. “I don’t think there can be enough said for getting things queued,” Meuret says. However you measure success in your shop, the conversation of capacity should start with a measurement of customer time.

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T E C H + TO OLS

FREE-TO-USE TECH TOOLS Utilize these free tech tools to help boost your marketing tactics B Y A B B Y PAT T E R S O N

IT’S A DIGITAL WORLD NOW—WE’RE JUST LIVING IN IT. AND AT THIS POINT, IT’S

where you have to be, according to Olivia Hensley, founder of Smart Marketing. “There’s all sorts of things we could do to market, but the reality is, that’s where they are,” Hensley says. “When you have limited resources, you are going to cast your net where you get the most amount of fish.” It’s not just about your business being on different digital platforms—it’s how you use these platforms that will make or break your business growth. John Joback, owner of 10 Minit Oil Change in Fort Myers, Fla. does all of his own marketing, and in his own unique ways. Since taking over the failing 10 Minit Oil Change from the previous owner only 1.5 years ago and utilizing these tools, he’s almost tripled business revenue. On top of this, his sales went up 119 percent. “With the amount of traffic and attention [the videos] are getting, no one else is doing that in the automotive and oil change industry,” Joback says. If you aren’t ready to hire someone to do the work, there are free tools out there for business owners to utilize that’ll get the job done. Yes, there are email marketing, newsletters and blogs, but have you thought about trying these options?

Social Media Connecting with Your Customers Building a relationship with your customers is an important part of marketing, and social media serves this purpose. Hensley says posting content, an ad or not, helps your shop stay on the top of a customer’s mind. In essence, posting on your Facebook page, for example, is like free advertisement. For example, when a customer sees a post or two from your Facebook page, they may not need a service at that moment, but when they do, your shop will be the first one that comes to mind. So, when it comes to social media, it’s important to post regularly with eye-catching content. “It’s invaluable advertising,” Hensley says. Through Facebook and other social media platforms, Joback engages with employees to keep his business at the top of their mind. “Facebook and social media are cheap when it comes to what you get in value,” Joback says. “Engagement is the No. 1 thing to turn social media into cash.” Because most everyone posts their information and what they’re up to on social media, Joback can engage with his customers in more personal ways, like sending messages to customers on their birthday, or reaching out when he sees a customer is having a bad day. By engaging with them, Joback says you are helping your chances of getting them into your shop. GETTY

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10 MINIT OIL CHANGE, LLC OWNER:

JOHN JOBACK Google Becoming the Authority If you want to gain lots of traffic to your site, Google is your go-to app. To prove her point, she says about 93 percent of people utilizing search engines in the world are using Google as their platform. And that’s the point; Google is meant to gain traffic and send the right customers to the right locations. Google and Google Maps go handin-hand. Hensley says when you need something, you say, “OK, Google, show me oil changes near me.” The shops that pop up are paid advertisements, but a lot of times, Google map listings pop up. And usually, a customer is going to choose the first shop that pops up with the most information. Hensley says it’s essential to fill out your Google listing. If it isn’t filled out, there isn’t a complete picture of what they are getting. “There’s nothing very emotional about getting an oil change, but if I had to choose a listing that had nothing on it versus 90 reviews, had pictures, and says it has WiFi, I’m going there,” Hensley says. Need help figuring out what a relevant ad looks like? Google can also show you how. Hensley says Google has a lot of resources available on the backend of their platform that people may or may not be aware of that can help with pay-per-click functions and ads that you are running. For instance, Google has a free, online analytics academy where you can learn how to utilize analytics, including pay-per-click and tagging tools. The Google Analytics Academy teaches you how the platform works, utilize report, even how to track and measure your campaign ads.

LOCATION:

FORT MYERS, FLA. Video Standing Out from the Crowd With everyone doing direct mail and coupons, it can be hard to differentiate your shop from all the others. Making video advertisements is not only engaging with your customer, it’s a unique approach. The best part? It’s completely free of charge. In fact, videos are one of Joback’s biggest sellers. After watching realtors make videos on Facebook about houses on the market, he thought, “Why can’t I do the same?” Soon, he started making his own videos of himself out in front of his shop. Using his phone, he’s front and center in the shot, displaying the shop’s logo in the background, talking about the shop’s promotions. His most popular promotion? A video to win a free $20 bill. The winner is the first person to come to the business and grab it. Without the money having any connection to the oil change shop, most people have taken it to spend on an oil change. “One person took the $20 to get an oil change and it turned into a $200 ticket,” Joback says. His videos have each gained between 1,000 and 5,300 views. That video in particular is one introducing all of the shop’s staff in a completely unique way. With a couple YouTube tutorials on how to use iMovie under his belt, he created a dramatic, suspenseful promo that, to be honest, felt more like a movie preview than a quick lube ad. “Everyone does direct mail coupons, and they don’t always work like they used to, so you have to provide value in other ways,” Joback says.

STAFF SIZE:

6 SHOP SIZE:

1,600 SQUARE FEET NUMBER OF BAYS:

3 (2 INSIDE, 1 OUTSIDE) AVERAGE DAILY CAR COUNT:

46 TICKET AVERAGE:

$100

WordStream A Source of Information Learning how to advertise effectively is important in being successful with your marketing tactics. If you’re not too keen on marketing tactics, WordStream will help get you there. Created by Neil Patel, who Wall Street Journal calls a “top influencer of the web,” the platform works as a guide to free tools and digital marketing advice. Hensley says the data the site produces is statistically reliable and has become one of her favorite resources that her own company uses. “In its hiatus, it probably managed 10 percent of all Google ads,” Hensley says. WordStream is a paid resource if you utilize their marketing services, advisors, and consultants, but there is a free tool to help evaluate your current advertisements—one of Hensley’s favorite parts of the site. The AdWords Grader is a free evaluation tool that will provide a final grade for your overall Google ads, Facebook ads and your site’s landing page performance.

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HOW I DID IT

Dave Ellard

MANAGING M U LT I P L E ENTITIES DAVE ELLARD OF TRIPLE PLAY CAR WASH AND QUICK LUBE GIVES HIS TIPS ON HOW HE MANAGES SEVEN PROFIT CENTERS BY ABBY PATTERSON

PHOTOS BY BETH GALLIGAN

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If you think managing one quick lube is tough, think again. Adding on a convenience store or a car wash to your quick lube adds to the workload, but imagine having seven different entities to manage. Dave Ellard, co-owner of Triple Play Car Wash and Quick Lube in Attleboro, Mass., knows a thing or two when it comes to managing his time with seven different ones to oversee. He and co-owner Terrence Elder oversee a quick lube, gas station, car wash, detail shop, and a convenience store, complete with a Dunkin’ Donuts and Boston Pita inside that they operate, too. For most quick lubes, another profit center is added later on down the road, but this wasn’t the goal for Triple Play. From Ellard’s research, good performing quick lubes have another profitable business on the property. So, they added all of the operations at once, officially opening all of its doors back in May 2008.

“The idea was to have a different kind of place,” Ellard says. “Our strategy was to do something bigger and more inspiring in the industry.” With their strategy and processes in place, Ellard says the business is looking to be in the top 10th percentile in all of the businesses. If you’re thinking about adding on another business, look no further. Ellard gives his tips on how he and Elder have been able to manage all of these profit centers efficiently from the start.

Tip No. 1: Have a management structure. With how big the entire operation is, there needs to be a strict management structure in place. In total, Triple Play has four managers on board to manage each entity: one at the quick lube, one at the car wash, one at the gas station and convenience store, and one at the detail center.

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“When you have multiple profit centers, you still need to have managers that run the business independent from ownership,” Ellard says. “With a bigger site, it’s more critical that you need management who can juggle all of these entities.” And the managers don’t only oversee their profit center—they are actively working, too. Each manager performs as a working manager, working alongside normal team members, while also in charge of the day-to-day operations.

Tip No. 2: Be present as an owner. Not all quick lube owners are present for the day-to-day operations, but that’s not the case for Triple Play. While the managers run their own profit center, Ellard and Elder work on site on a full-time basis between each center, focusing on the bigger picture. “We are here to coordinate, set the culture,

One-Stop Shop For Dave Ellard, left, and Terrance Elder, Triple Play Car Wash and Quick Lube was about bringing more to the customer. So they had to work out a management structure that supports every part of the business.

and prioritize labor,” Ellard says. “In a site that is this busy, it’s good to have ownership here.” The area they most frequent in is the detail center. Why? From the detail center’s waiting area, it’s the perfect place to see most of the business. “If you get caught up in doing the day-to-day physical work, you aren’t focusing on the bigger picture,” Ellard says. “The coordination process is very important, and you need a management structure to do that.” The nice thing is, there’s still some flexibility involved for ownership. With two owners, sometimes it isn’t necessary for both to be there. On busier days, both Ellard and Elder are on site. And to do this, there needs to be a lot of communication between the two. It’s like being on call; one owner goes in to assess how the day will play out and texts the other owner to see if it’s necessary to come in or not. And if a big rush comes in and help

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TRIPLE PLAY CAR WASH AND QUICK LUBE OWNER:

DAVE ELLARD AND TERRANCE ELDER LOCATION:

ATTLEBORO, MASS. TOTAL STAFF SIZE:

35 (8 QUICK LUBE, 10 DETAIL, 3 CAR WASH, 8 C-STORE, 5 MANAGEMENT) SHOP SIZE:

16,000 SQUARE FEET (CAR WASH + QUICK LUBE) NUMBER OF BAYS:

9 (3 FOR QUICK LUBE, 6 FOR DETAIL)

is needed, each owner is just a phone call away to come in and lend a helping hand.

Tip No. 3: Treat them as one. When you have multiple businesses in one, it’s important to drive traffic to each. Ellard says a lot of people just have a car wash and market within the store, but Triple Play likes to cross market customers between their profit centers. “It’s difficult, in most cases, to attract business every day when it’s a single entity,” Ellard says. “If you try to treat it like a stand-alone quick lube, you’re going to have problems.” Ellard says they get a lot of traffic because there are a lot of reasons for customers to be on the property, whether it’s grabbing a cup of coffee, filling up on gas or getting a car wash. The goal is for Triple Play to be a customer’s one-stop shop, and they promote this through cross-promotions. For example, when a customer comes in for an oil change, they’ll receive a free car wash. If

All for One Each of the four main areas of the business has its own manager. That allows Ellard and Elder to work on cohesivenss among those areas to benefit the entire operation.

you buy a car wash at the gas pump, you get 20 or 30 cents off per gallon on any gas purchase, depending on the type of car wash you get. When you buy a car wash directly from the car wash entrance, you’ll receive a coupon for $10 off an oil change. And if you buy a car wash at the gas pump and proceed to the car wash, you’ll receive both the gas discount and the $10-off coupon. Ellard says the car wash offers really help to boost quick lube business. And with offering these coupons and discounts, a shop owner also has to make it convenient. Adjacent to the gas pumps, vacuums are there to use, free of charge. The shop also offers express detailing with no appointment required. Even while getting an oil change at the quick lube, customers can get express detailing in their car while they wait. It’s easier to sell the extra amenities when it’s right at a customer’s fingertips. “We put a focus on convenience and customer service,” Ellard says.

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AO CA C O R N E R

AOCA Government Affairs at Work Getting results in these key issue areas

KRISTY BABB

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

INFO

@AO CA . C O M O R 8 0 0. 2 3 0.070 2

The Topic: OEMs and authorized dealers market vehicle sales and ownership costs using the highest oil change service intervals for misnamed “normal” driving conditions. Why AOCA Membership Matters: AOCA developed the Recommended Practice for Customer Management of Oil Change Intervals, which empowers consumers with the complete picture of OEM-recommended intervals including the most commonly applicable “severe” conditions. What’s at Stake? Customer satisfaction and avoiding unfounded fraud actions. The Topic: OEMs and authorized dealers violate the Magnuson Moss Warranty Act prohibition against tie-in sales of OEM brand products and services. Why AOCA Membership Matters: AOCA successfully files complaints with the Federal Trade Commission, undertakes critical operator and consumer surveys, and advocates for mandatory OEM/ dealer MMWA consumer rights notices. What’s at Stake? Industry viability The Topic: OEMs and authorized dealers conceal and deny engine defects through prohibited tie-in sales of OEM brand products and services. Why AOCA Membership Matters: AOCA investigates early warning signs of defects (ex. ballooned oil filters in Hyundai/Kia vehicles with Theta II and Nu engines; mysteriously dropping drain plugs

thousands of miles post-service) and files complaints with both the Federal Trade Commission and National Highway Traffic Safety Administration. What’s at Stake? $5,000 to $10,000 per engine

The Topic: OEMs encourage state legislators and regulators to impose regulations to support “normal” service interval fiction. Why AOCA Membership Matters: AOCA successfully advocates against state legislation and regulation that would penalize necessary application of “severe” intervals. What’s at Stake? Potential $500 per-service fines The Topic: OEMs encourage state and federal regulators to officially eliminate aftermarket competition on the basis of new vehicle technology. Why AOCA Membership Matters: AOCA successfully advocated for Right to Repair legislation, which must now be expanded to include telematics; see Massachusetts H4122. This issue overlaps with the MMWA prohibition against tie-in sales and service when OEMs/authorized dealers use vehicle display panels to command drivers to use OEM brand service. What’s at Stake? The future of new vehicle services The Topic: Members of the National Conference on Weights and Measures (NCWM) proposed label and receipt requirements for engine oil and transmission fluid products that would destroy aftermarket competition. Why AOCA Membership Matters: AOCA successfully advocated for the correction of those regulations with NCWM and SAE to preserve and protect aftermarket competition, including the long sought-after requirements for (a) official recognition of the suitable-for use transmission fluid standard; and (b) mandatory detailed bulk product receipts from distributors at delivery. AOCA also developed the only training program for engine oil and transmission fluid labels and receipts applicable to installers, retailers, distributors, and manufacturers. What’s at Stake? $100,000 to $300,000 per legal case, as well as fines, penalties and product losses.

COURTESY KRISTY BABB;

THE GREAT AMERICAN FAST LUBE IS AN

automotive marketplace niche champion— an evolutionary powerhouse streamlined to give the most consumers maximum care at a cost they can afford. As a result, routine maintenance protects each driver’s vehicle investment while also helping to keep roadways safe and clean for everyone. Behind the scenes of this smart, straight-forward industry, however, operators must daily navigate a mine-field of regulation and unfair competition from automakers and their “authorized” dealers. AOCA’s Government Affairs Committee works year-round to disarm those risks via advocacy, research, and development of recommended practices and compliance training programs.

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EVENT SCHEDULE DAY ONE: SUNDAY, DECEMBER 6 6:00–8:00 PM

WELCOME RECEPTION

DAY TWO: MONDAY, DECEMBER 7 7:30–8:30 AM

BREAKFAST

8:30–8:45 AM

JUMPSTART: EMBRACE TECHNOLOGY. GROW YOUR BUSINESS. OWN YOUR FUTURE.

8:45–9:45 AM

SUMMIT KEYNOTE: FEAR AND LOATHING IN THE AFTERMARKET?

10:00–10:45 AM 11:00 AM–12:00 PM 12:00 PM–1:00 PM

TECH TALK: THE CHANGING LANDSCAPE PANEL DISCUSSION: THE OEM PERSPECTIVE LUNCH KEYNOTE

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SUMMIT RECEPTION

DAY THREE: TUESDAY, DECEMBER 8 7:30–8:30 AM

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TECH TALK: SHOP SOLUTIONS

10:15-11:00 AM

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Delivering an Exceptional Customer Experience Builds Loyalty Improve customer retention by marketing your business in-person and online BY BILL BEYERLE, AUTOMOTIVE INSTALLED SALES MANAGER, CHEVRON LUBRICANTS

During our discussions with quick lube operators, often they express conPaid search or pay-per-click (PPC) advertising: Again, due to trends, search should cern that their competition is all about price. Well, it may surprise some that be your No. 1 marketing spend. When customers search on Google for “oil change trust is the No. 1 reason most consumers choose a service facility, not price. near me” your business needs to come up as an option for them to locate, call and/ Sure, in any business there are always going to be some consumers that care or go to your website to see your promotions. If you’re not coming up in search only about price. But to grow a base of regular, repeat customers, loyalty and results, then unfortunately, your business is invisible to potential customers. the new business that comes with positive reviews and word-of-mouth begins with earned trust. Website: You can’t do a paid search ad campaign without a website. There are Trust starts with the brand image of your facility. Customers are naturally many local companies out there that can design a professional, easy to maindrawn to a business that looks clean, bright, well-painted, with tain website (just do a Google search). Websites should a nice parking area and spotless service bays. As part of your provide basic information—locations, store hours, phone brand image, your employees should always wear uniforms numbers, the ability to schedule appointments, coupons/ and look professional at all times. Sparkling clean bathrooms promotions, pictures of your business and staff, links to your “You can attract and a comfortable waiting area with coffee, snacks and reading social media platforms, and so on. Websites—like your vehimaterial are key to maintaining a positive impression. cles—must be maintained and always kept current and fresh. new customers A friendly greeting, helpful attitude, and knowledgeable while reinforcing employees all add to the customer’s experience and comfort Social media platforms: Use social media like Facebook and existing level. It’s great if the greeters know the customer by name, but Instagram to show the personal side of your business, such as relationships even if not, they should be able to look up and comment upon community work by employees. Share team photos and special the customer’s previous work. For new customers, set them up occasions. Put maintenance tips out there and promotional ofbetween visits.” in your system right away to expedite future visits, capturing a fers from time to time. You want to get your loyal customer base —Bill Beyerle, sales cell phone number and email address in the process. to like and share your posts. And for not much money, you can manager, Chevron “We remind employees all the time that we are not just in create and select audience profiles and boost Facebook posts to Lubricants the automotive service business, we’re in the customer serextend your reach to target audiences. vice business,” says Dan Kromminga, owner of a Chevron Havoline® xpress lube® in Vancouver, Wash. “If you treat emText and email: Done selectively, text messages and email are ployees as professionals, they will act like one when they’re cost-effective channels for communicating offers while keepwith a customer.” ing your customer database up to date.

THINK BEYOND THE STORE A great customer experience isn’t confined to the store anymore. You can attract new customers while reinforcing existing relationships between visits. Digital communications make it easy to stay top-of-mind with customers. Review sites: Actively managing your online reputation through review sites like Yelp and Google Reviews is critical. Consumers, and particularly the growing younger demographics, navigate their lives on the go through their smartphones and are more apt to choose to do business with a location that has 4-5 star reviews. Answer any negative comments in a timely and positive manner or go one step further and ask the customer to come back and give you a chance to change their impression. 68

Referral program: Introduce a referral program to encourage customers to tell friends and family about your business and reward them with a free service when a referral comes in—who doesn’t like to be surprised and delighted! Remember, though, all these efforts are for naught unless you actually deliver quality service at a fair price. It’s all part of the customer experience that feeds the feeling and belief of trust. Be sure your performance measures up to your promises, and your customers will have no reason to go anywhere else.

Bill Beyerle has been with Chevron Lubricants for more than 25 years and is currently the automotive installed sales manager. You can reach him at BillBeyerle@chevron.com.

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Technology Trends–Part 2: Telemetrics and Shared Fleets What you need to know about the industry’s emerging technology BY STEVE BARRAM, CEO INTEGRATED SERVICES, INC. (ISI)

In the first column, we discussed the topic of electric/hybrid cars within

the context of the potential impact on our quick service marketplace. This month, we are going to talk about telemetrics as well as the concept of the “shared fleet.” THE CONNECTED CAR

norm within just a few short years. Thus, access to the information about the vehicle is crucial. Connected vehicles enable more predictive maintenance (add in a dose of AI and what do you have? Best timing based on a world of data being analyzed). We will cover some artificial intelligence (AI) possibilities in a later column. There are a significant number of privacy questions raised by the connected car and its information. California is leading a charge to restrict the movement and use of this information, especially absent an informed choice by the vehicle owner.

First, let’s discuss the connected car and some implications and opportunities. You will recall we loosely defined telemetrics as “sensors” on board a car communicating information remotely via a connection. For the connected cars to really enter the mainstream and lead us into the truly autonomous cars, we will THE NEW BUSINESS MODEL need to see the nationwide build-out of the 5G network. We said if 4G (today) is Connected cars permit a new business model to develop. Think of Uber on a four-lane highway traveling at 50 mph, think of a 5G network as an eight-lane steroids and limited to small fleet groupings versus general service to the public at highway traveling at 100 mph. large. The shared fleet owner is now the controlling decision The 5G build-out comes first in the urban environment. maker on whom we will focus versus each individual vehicle Rural areas will follow. Economics and customer counts will owner. This creates opportunities for us to alter our model drive the map of the build-out. “By 2050, as many and marketing to accommodate the needs of this new class of For our industry, we should be planning and thinking about owner. Think of a shared fleet owner and Level 5 autonomous as 1 in 3 miles how to anticipate what opportunities this will present. For car. Now the owner will know exactly when he or she wants driven could be example, today accessing vehicle data on newer models is the car serviced. We have two major considerations. One⁠, from a shared fleet increasingly being done wirelessly versus the ODB2 port. This regular maintenance performed at or near proper intervals is a game changer for customer communication. vehicle.” is more crucial to prolong the availability and longevity of the vehicle. Two⁠, this might be a great opportunity for you —Steve Barram, CEO, ISI THE RIGHT TO ACCESS DATA to offer being open from midnight to 6 a.m. just to schedule The current fight between the vehicle manufacturers and the the shared fleet cars. A Level 5 car has no driver so it can be broader automotive aftermarket, which includes us, is around serviced without impacting its daily duty cycle. who owns and or should have the right to access the available By 2050, as many as 1 in 3 miles driven could be from a information about the vehicle that is generated through telemetrics. Think back shared fleet vehicle. to the Massachusetts Right to Repair Act in 2012. That legislation dictated that Now think about software connections between, the lube shop, the software repair shops were entitled access to the ODB2 sensor information. The current in the car, and the fleet owner’s fleet management software. Building the engagement is very similar, only around the wireless transmission technology. relationship between the lube shop and fleet owner, identifying what needs to be European studies have concluded that competition neutrality and data serviced and scheduling it. All via software. No cash, all transactions via payment protection and security can be achieved by intentional design for interoperability. software connected to the POS. Essentially, Europe has determined that interested and vested parties, OEMs, In the next column, we will entertain some thoughts around “Tesla’s shot vehicle owners and their designated repair or maintenance shops, should have across the bow.” access to the information. The United States and Canada have not yet arrived at that position from a regulatory standpoint. States, including Massachusetts, are examining what positions they will stake out. Steve Barram is CEO of Integrated Services, Inc.(ISI) - software makers of LubeSoft. This is a major battle with significant implications for us. Canada has indicated He has been actively involved in the fast lube segment of the automotive aftermarket it expects all vehicles produced by 2023 to be fully connected vehicles. While industry for over 30 years through leadership roles, speaking engagements, and serving the United States has not been as overt, connected vehicles are going to be the on boards. For more information, please visit: www.ints.com. APRIL 2020

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The Technician is the Maintenance Reminder Light How thorough vehicle inspection boosts sales and customer confidence BY LARRY HAMMER, TECHNICAL SERVICES, MIGHTY AUTO PARTS

You are the maintenance reminder light and it’s not a job to be taken lightly.

fluid flush. During a panic-braking situation, the moisture laden fluid

may turn to vapor due to the intense heat, resulting in a loss of brake Your customers trust you with their second most expensive investment. pedal. Inspect the brake lines for corrosion, which can result in brake The instrument cluster is filled with gauges and lights that reflect the failure during a panic stop. Pay special attention to the brackets that operating conditions of the engine. Unfortunately, many vehicle owners secure the brake lines, as this is an area that often traps road debris have become accustomed to relying on these instruments or warning and salt. The brake lines are the veins/arteries that distribute the lights as the sole informer of any necessary services. While there is an influid to the hydraulic components, which provide dicator for many problems that need attention such as a the clamping forces necessary to stop the vehicle. service engine light, alternator/battery, low coolant, low Contamination, corrosion or leakage can lead to a brake fluid, change oil, etc., there is a lot more maintecatastrophic event. nance required. 4. Do you limit your filter replacement recommendaRelying solely on a warning light results in a lot of pre“Most vehicle tions to the oil and air filters? What about the cabin ventative maintenance services being neglected, resultowners do not air filter? Chances are your customer is not aware ing in some major expensive repairs. You have a responunderstand that their vehicle is equipped with one. Are you recsibility to perform a thorough inspection and to make ommending a fuel filter replacement? A restricted recommendations to the vehicle owner on what services the difference fuel filter can affect engine performance and lead to should be performed as a part of the recommended vebetween severe premature electric fuel pump failure, costing hunhicle maintenance. Most vehicle owners are not aware of or normal dreds of dollars in repair cost. the required maintenance that is necessary to keep their service operating 5. Identifying a leaking water pump can generate more vehicle in good operating order. than a water pump replacement. For example, a It is our job to assume this responsibility. You are the conditions.“ cooling system flush, new antifreeze, thermostat, maintenance reminder light.

INSPECTIONS

—Larry Hammer, technical services, Mighty Auto Parts

Often we get into a pattern of only inspecting and recommending the services that we specialize in. The customer assumes that we are performing all required services and performing a full inspection on the vehicle. Many needed services are not being performed, resulting in some costly repairs. In a worst case scenario, the customer gets stranded on the highway because we failed to perform a thorough inspection on their vehicle. Let’s consider a few cases of neglect when performing inspections: 1. Failure to test the condition of the battery is a good example. Battery testers are available that will determine the condition of the battery long before the customer encounters a no-start condition, often requiring a wrecker/service call. The wrecker call can exceed the cost of a new battery. And what happens when they determine that this was preventable? 2. Suspension components wear resulting in damaged tires due to misalignment, requiring premature replacement. 3. Brake friction gets replaced, but we fail to recommend a brake system 70

hoses, belts and possibly a new belt tensioner. Most vehicle owners do not understand the difference between severe or normal service operating conditions. Most are surprised to learn that they operate their vehicle under a severe service category, which requires more frequent oil and filter changes.

Perform a thorough inspection and provide the customer with your service recommendations, even if it requires another shop to perform some of those services. They will appreciate the attention given. Remember, you are the maintenance reminder light for your customer’s vehicle. They will appreciate a thorough and professional vehicle inspection. Take the time to fully explain the results of the inspection and any service recommendations.

Larry Hammer is an automotive troubleshooter who oversees technical support services at Mighty Auto Parts. Hammer has been writing technical articles since 1982. He may be reached at: larry.hammer@mightyautoparts.com.

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Going for the ‘Yes’ How having value in what you offer boosts sales BY AMBER KOSSAK, PRESIDENT AND CEO OF SOLID START

Sales is one of the world’s oldest professions. Where there are people, there will be selling. With making a sale, we feel that building relationships and trust are top priority, therefore; when going for the “yes,” these are a must. There are purchases that take place that we might not have much of a relationship, but we have built somewhat of a trust factor. For example, when buying from Amazon, we do not necessarily have a relationship with anyone or thing, however, we trust they have just about anything we want, our payment transaction will be correct, we will receive our package on time and in good shape. Whether you are calling on accounts or operating a business where customers come to you, the objective is the same. When we are going for the “yes,” we need to make sure we are building one of the two, a good relationship or trust. To achieve these, several things are important: kindness, communication, education, planning, attention, empathy, persuasion, authenticity, and the emotion factor.

“yes,” you must show them you understand where they are coming from. People will care much more about you when you care about them.

PERSUASION

There’s a difference between persuasion and manipulation. You can easily persuade someone when you follow through and build a relationship, have trust, communicate, and educate. Persuasion is helping people choose what is in their own best interest. Dr. Robert Cialdini, author of the groundbreaking book Influence: The Psychology of Persuasion, notes that research has been ongoing for more than 60 years about ethical persuasion tactics. During this selling phase, never feel bad educating your customers. By educating them you help them make a better decision. Layout the facts and inform because knowledge is power and the better informed they are, the more confident they will “People will care feel about continuing your relationship.

PLANNING Some people may worry that having a plan will make them come across as stiff and stilted. They may not recognize that having a plan enables us to be better listeners because we are prepared. Obviously, our ultimate goal is obtaining a “yes;” however, we want to do it with kindness and making sure everyone involved is fully educated. When we are educated on whatever we are purchasing, talking about, or building, this puts us in a much better position to communicate.

much more about you when you care about them.”

AUTHENTICITY AND THE EMOTIONAL FACTOR

Authenticity is important. When you are authentic, you want what is best for your customers and they can sense it. This is what —Amber Kossak, makes strong-arm tactics and the hard sell approach such a turnpresident and CEO, of off. Untruthfulness may create an uncomfortable tension that Solid Start produces insecurity and undermines confidence in your motives. When making a purchase, some customers are looking for emotional satisfaction. In fact, they often make their decisions based on emotion, but also need objective reasons to repress ATTENTION inner insecurities and to defend their choices. No one likes to feel There’s no point in attempting a sales transaction without first having your prosfoolish, so you would do well to give them the ammunition they’re secretly lookpect’s attention. Actually, they will also lose interest if you yourself are not fully ening for. Testimonials, stats, facts, and guarantees all go a long way to put inward gaged. Put your phone away, listen, if in-person look them in the eyes, and do not anxiety to rest. be distracted by what is going on around you. People will care much more about Anyone who has dealings with you will appreciate you even more if you you, your story, and what you are selling when you show interest in them. By giving practice these things. Having value in what you are offering can be more your full attention, you’re affirming that this moment of shared time is important important than the almighty dollar. Yes, making money is important, however; to you. building long-term relationships on trust, kindness, empathy, and authenticity will far out pay any short-term dollar.

EMPATHY A major mistake some people make is trying to convince the other person that he or she is wrong and that they are right. This is not the path we should take to building a relationship. To establish empathy, we first need to try and understand the other person’s viewpoint. Empathy can be difficult to cultivate. Many people today are out for what best benefits them, so before you attempt to go for the

Amber Kossak is president and CEO of Solid Start, manufacturer of True Brand Products. She has been in the automotive industry for almost 20 years and is serving on the AOCA board of directors. She can be contacted at kossak@solidstart.com. For more information please visit solidstart.com. APRIL 2020

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LEADING EDGE

Friction Has Potential to Destroy Don’t neglect the regular maintenance for shop culture

L E NN Y SAUCIER

Has spent the last 17 years developing future quick lube leaders for one of the fastest growing quick lubes in the nation. His procedural and development consulting has brought him around the world to spread knowledge in the United States, Canada and Saudi Arabia. His experience has placed him on many boards and committees with the AOCA, Take 5 and MAP/AMRA.

FMGVE NTU RE S

@ G M A IL . C O M

What is Friction? In business and personal life, friction occurs when two or more people meet with different opinions. This could be based on perceived personalities (see January 2019 article “Understanding Personalities and How to Apply Them”). It may be based on a social upbringing from parents, friends or other socioeconomic factors. It could possibly be experiences in similar or exacting situations. When two or more people are presented with a goal or scenario and options are offered up about the situation you create friction. Friction may also be called conflict, disagreements or hopefully be called Great! How It Can Help Friction is wonderful. Only when you accept something that makes you uncomfortable as a challenge that you can learn from will you ever grow. Consider trying to prepare for a 5k run by running 1 mile, feeling good and stopping. When you finally get to the 5k event, you gas out shortly after the one-mile mark. This is because of two reasons: Your body is not used to running more than that distance and your mind has been set to accept a third of your goal. You have limited yourself to your expectations and the bar that you set is the bar you will meet. When you set your cap on your expectation you limit your potential. There is not a single reader looking at this article who knows their true potential. You are not reading anything to be content in your life I promise you. So, when conflict comes at you, accept it as an opportunity to grow, learn and prosper. “Let the wise

listen and add to their learnings and let the discerning get guidance” Proverbs 1:5 . Accepting knowledge into your life doesn’t mean that the differing person was right but means that you learned about how others think feel and act, and you can use that knowledge to grow. If you do not have friction, you cannot grow.

How It Can Hurt Having too much friction can also hurt you and your business. If you do not control friction in an engine, you overheat, blow out rings, scratch and damage internal parts and ruin your engine. To help with this you have gauges and warning lights, and maintenance schedules to help you prevent these damages. In your business you have the same gauges in the terms of progress and work demeanor or morale. Having the process slow down dramatically to appease all suggestions or feelings can cripple your business. Someone inside your business whose main focus is to slow, deter or alter your business because of their own misery or failures is a cancer. They will spread their disapproval to anyone who will accept it and then quickly deteriorate your entire business until it fails. How to Control It The cancer is very easy to fix. Once you have evaluated and understood its motive, you remove it. There is no place for a cancer in your body so there is no place for a cancer in your work. You should anticipate and encourage friction. If there is an action or program you are thinking of running, express this to your trusted group and give a certain time frame for comments and suggestions to be hashed out. For those with their chest inflated right now, saying, “I’m the boss. I don’t need to let them discuss what’s going on,” you are completely correct. You are the boss! As the boss you should realize that it takes less time to bring up an event and do it right than to just throw something out there and see it fail, then must go back and readjust. Plus, its much easier on the ego and promotes buy in when putting the plan to work. Do not go looking to fill your trust with a bunch of yes men. They serve no purpose in business and personal growth, they are there to make you comfortable. If two people are in the same business who think exactly alike, one is not needed.

COURTESY LENNY SUACIER

WE ALL UNDERSTAND THE BASICS OF A MOTOR

and the importance of motor oil. The engine is pumping at high speeds, there is contact of opposing forces that create friction. The friction creates heat which can be deadly to your engine. Motor oil is introduced into the equation to remove the heat and protect the engine from damages of scrapes and scratches. You also need that heat to a certain extent. If you don’t have heat, how will you burn off the moisture that collects inside the engine which eventually mixes with oil and creates sludge? Just in our business we need friction (it's healthy to an extent) but you need processes built in to keep it from destroying your business.

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From our family to yours: During these trying times, we wanted to take a moment to let you know that we love you! We genuinely hope that you and those you love are safe and healthy. Our hearts, thoughts, and prayers go out to each and every one of you who are affected by the COVID-19 pandemic. We are all living minute to minute and making adjustments we probably thought we would never have to make. We miss you and look forward to when we can all offer each other a hug once again. Sincerely, The True Brand Family

Truth:

“Strength doesn’t come from what you can do. It comes from overcoming the things you once thought you couldn’t.” - Rikki Rogers

Contact your local Solid Start Distributor to get True Brand in your shop. Call Today: 877-290-3950 | www.solidstart.com | #TrueBrandTough April 2020 | NOLN 75 _3CV_SOLID START_0420.indd 75

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3/23/20 8:09 AM

NOW ARRIVING.

REDESIGNED ELECTRONIC SERVICE MANUAL.

ISI is excited to announce a whole new look & feel for the LubeSoft® ESM (Electronic Service Manual). • Browser-based technology • Easy access to data • Added procedures for servicing oil filters • Added specifications for diesel exhaust fluid

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