NOLN - June 2022

Control Your Future Highlighting self-starters who strive for success PAGE 24

SMART WARRANTY CLAIM RESPONSE

PAGE 20

BETTER TRAINING PROGRAMS

PAGE 28

THE LANGUAGE OF LOBBY DESIGN

PAGE 30

JUNE 2022 / NOLN.NET

Lifelong Businessman Mike Vasheghani, center, started by selling ice cream as a kid. Today, he’s built a successful shop that’s in family hands.

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06.22

CONTENTS

06 ONLINE

Bridgestone has EV plans 07 EDITOR’S LETTER

Top shop stories

08 BY THE NUMBERS

Breaking down gross profits

QUICK HITS 11 INDUSTRY INSIGHT

Finding real estate opportunities 12 AROUND THE INDUSTRY

Hyundai faces oil consumption suit 15 ADAPT

The precedent of Right to Repair 16 SHOP LOOK

Oil Changers of Dublin, California

SERVICE 28 EDUCATION+TRAINING

Don’t skip training day 30 CASE STUDY

20 LEAD STORY

Covering Warranty Claims

Experts talk about different kinds of warranties, as well as how to respond when a claim is filed.

BY M AT T H U D S O N

24 PROFILE

Service to the Industry

Proper Process Justin Cialella, CEO of Victory Lane Quick Oil Change, says that a procedurebased approach to warranty claims helps all parties get the information they need.

C OL UMN S 20 FROM THE SHOP

Why training should lead priorities

BY A DA M TAT U M

39 AOCA CORNER

The future of the vehicle fleet

BY BRETT FRASER

Read about the strong operation Mike Vasheghani built, and how his entrepreneurial spirit set the foundation for success

42 LEADING EDGE

BY DAVID BELLM

BY LENNY SAUCIER

Manage workload woes

NOLN, VOL. 37, NO. 6 (ISSN 1071-1260), IS PUBLISHED MONTHLY BY 10 MISSIONS MEDIA, LLC, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804. COPYRIGHT ©2022 BY 10 MISSIONS MEDIA LLC. ALL RIGHTS RESERVED. NOLN CONTENT MAY NOT BE PHOTOCOPIED, REPRODUCED, OR REDISTRIBUTED WITHOUT THE CONSENT OF THE PUBLISHER. PERIODICALS POSTAGE PAID AT ST. PAUL, MN AND ADDITIONAL MAILING OFFICES. POSTMASTERS SEND ADDRESS CHANGES TO: NOLN, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804.

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ALICE HEART PHOTOGRAPHY, TERRIFICSHOT

FE ATURE

A look at luxurious lobbies

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JUNE 2022

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ONLINE

VISIT

NOLN.NET TODAY

PODCAST

THE NOLN PODCAST

CAN ‘NO’ SET YOU FREE? Whether you think you’re saying “yes” too often, or you would just like some strategies to decline requests and maintain strong relationships with customers and colleagues, this podcast episode is all about how to say “no.”

Michael Tougias, author of the book “No Will Set You Free” joins Editor Chris Jones to talk about “no.” He explains why we have a hard time saying “no”—especially at work— and how using this simple word can help managers and employees reclaim time and boost productivity without feeling like a jerk.

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

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

BRIDGESTONE’S EV PLANS

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

6

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

N O L N . N E T/ T W I T T E R

N O L N . N E T/ P O D C A S T S

NOLN NEWS Have you subscribed to the newsletter? NOLN will send the latest industry news, strategies and profiles straight to your inbox.

Sign up at noln.net/subscribe.

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

GETTY

As EVs become more commonplace, shops are having to adjust how they provide service to account for vehicles with different drivetrains rolling into their service bays.

NOLN continues to talk to major automotive brands about their strategies behind the EV trends. In this edition, the spotlight is on Bridgestone, which manufactures tires but also runs a network of auto care centers.

Mark Ferner, a senior manager with Bridgestone, talks about how the company locations have slightly shifted their training to promote safety and efficiency with EVs while still focusing on services that are needed on all vehicles, regardless of what powers them.

N O L N . N E T/ V I D E O S

NOLN.NET

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06.22

EDIT LETTER

EDITORIAL CONTENT DIRECTOR

Matt Hudson

SENIOR DIGITAL EDITOR

Noah Brown

DIGITAL REPORTER

Hanna Bubser

CONTRIBUTING WRITERS

Adam Tatum, Lenny Saucier, Zane Douglas, and David Bellm

EDITORIAL ADVISORY BOARD

Lenny Saucier, Director of Retail Training, FullSpeed Automotive Pete Frey, Operator, Take 5 Oil Change Adam Tatum, Director of Operations, Virginia Group Bill Floyd, Operator, Lucas Oil Centers

SALES

VP AND PUBLISHER

Chris Messer, cmesser@10missions.com ASSOCIATE PUBLISHER

Andrew Johnson, ajohnson@10missions.com MARKETING STRATEGISTS

Marianne Dyal, mdyal@10missions.com Chad Hjellming, chjellming@10missions.com Bob Marinez, bmarinez@10missions.com Martha Severson, mseverson@10missions.com Kyle Shaw, kshaw@10missions.com Dan Thornton, dthornton@10missions.com Sean Thornton, sthornton@10missions.com ASSOCIATE MARKETING STRATEGIST

Kenzie Verschoor, kverschoor@10missions.com CLIENT SERVICE SPECIALIST

Jen George, jgeorge@10missions.com

ART AND PRODUCTION

CREATIVE SERVICES DIRECTOR

Zach Pate

ART DIRECTOR

Jonathan Ricketts

GRAPHIC DESIGNERS

Mitch Bradford, Morgan Glisczinski, PRODUCTION ARTIST

Lauren Coleman

10 M I S S I O N S M E D I A PRESIDENT

Jay DeWitt

GENERAL MANAGER AND PRODUCTION MANAGER

CENTERING THE SPOTLIGHT

Recognizing operators who are dedicated to their service

Mariah Straub

EVENT PRODUCER

Kate Fahlen

COMMUNIT Y DEVELOPMENT ASSOCIATE

Meghan Horan

SENIOR DIGITAL MEDIA STRATEGIST

Tiffany Fowler

BOOKKEEPER AND CLIENT SERVICE SPECIALIST

Meghann Moore

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.

I FIRST SPOKE WITH MIKE VASHEGHANI

in early 2021 for a story about shops that added mechanical repair services to their menus. I really enjoyed chatting with him about his operation, and his son, Sumun, was also gracious with his time and knowledge. Mike has a way of getting straight to the point and conveying his passion for the business.

For me, a magazine writer, there was plenty to choose from to get great quotations.

Reflecting on my conversation with Mike, it became clear that he was just the kind of operator we like to feature here in NOLN. He has great

enthusiasm and pride in his work. He knows what strategies have done well, which ones have not, and he’s happy to share that process. And finally, he doesn’t ever feel like the work of improvement is finished.

I knew we had to have Mike and his family-run operation back for a profile story. More than a year later, this issue contains the result of that effort (p. 24).

This month, you’ll also see our feature story on warranties and warranty claims, which I hope is a useful tool for operators to get a refresher on an important topic (p.20). Thankfully, I had the help of three industry experts to walk me through the different kinds of warranties and the steps operators should take when a customer files a claim. The biggest piece of advice? Have a plan. Don’t leave it up to the split-second reaction of a shop manager when an angry customer calls.

Also in this issue is the first set of data to come from the 2022 NOLN Operator Survey (p. 8). It has been a big effort to put the larger survey together, and I’m happy to share this snippet about how operators’ gross profits are allocated.

Now, if you’ll excuse me, spring has sprung in my neck of the woods.

I’m off to smell the flowers. Thanks for reading!

MATT HUDSON

CONTENT DIRECTOR, 10 MISSIONS MEDIA

JUNE 2022

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NUMBERS

FOLLOW THE MONEY Check out the first data set to be released from the 2022 NOLN Operator Survey!

Compared to 2021, operators reported more money going toward payroll and cost of goods, while net profit declined a bit (-3%). How does this stack up to your operation?

FIND OUT MORE

Is the cost of doing business weighing on your mind? Don’t forget to take time to relax and de-stress.

NOLN’s article, “Internal Balance for Shop Owners,” goes through the effects that stress can have on operators’ lives, and what they can do to find balance. Check out noln.net/destress for more.

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INDUSTRY INSIGHT

FINDING REAL OPPORTUNITY WITH REAL ESTATE

Costa Kapothanasis of Costa Oil strategizes for the future of the quick lube industry by establishing smaller buildings on nontraditional properties

BY HANNA BUBSER

INNOVATION FUELS MANY INDUSTRIES,

especially as the world continues to face a multitude of change and necessary adaptation. It is no surprise that this mindset also applies to the quick lube industry, regarding the various ways of approaching both services and their ultimate execution.

Navigating towards a fool-proof solution is never an easy task, but jumping in with a creative line of thinking can prove to be a unique way to equip for success.

For Costa Kapothanasis, President of Costa Oil 10 Minute Oil Change, this kind of opportunity presents itself in the form of innovative real estate endeavors.

His strategy diverges from property that is thought to be more traditional, focusing instead on finding options that allow Costa Oil to better serve its franchisees while simultaneously eliminating some competitors and emerging better prepared for the future of the industry.

Build for success.

The process actually begins with the physical buildings involved by invoking a design concept called Costa Oil Kiosks.

These are buildings that can be built on smaller lots and allow Costa Oil to have a lean operation focused on high volume.

“Right now, we are concentrating on building new buildings because we have been able to create a building that is affordable, opposed to the more common trend of these quick lube buildings being millions of dollars to build.” Kapothanasis shares with NOLN. Given the compact size of these buildings, Kapothanasis has found

that Costa Oil can approach real estate options that differ from what is traditional. He has done so by purchasing existing lots that previously housed gas stations.

Recently, he submitted applications to build new corporate stores on gas station lots through a blind auction purchase from Speedway/Circle K in Michigan. Overall, he sees this market as one with low competition and high inventory potential, due to this changing gas station structure.

“The gas station business has become one where, instead of having a 600 square foot convenience store where you grab a Red Bull and Cool Ranch Doritos and drive away, now all of the sudden they have these 5,000-square-foot parcels,” Kapothanasis explains, “and those 0.23-and 0.27-acre lots are no longer big enough to really have the new model gas stations.”

This shift provides access to a surplus of real estate options at cheaper rates. Kapothanasis already transitioned two pilot locations from gas station to quick lube.

Ultimately, it is about more than opportunity. It is also about the outcome. Kapothanasis is using this creative line of real estate forward thinking to solidify Costa Oil as a stand out contender within the industry.

The opportunity to pursue real estate that is relatively untouched by other quick lubes gives Costa Oil an advantage. There is no threat of getting caught amidst a bidding war with other brands that utilize a traditional half-acre lot.

QH

“We’re not competing with Popeye’s, we’re not competing with Raising Cane’s and Starbucks and all of these other established companies.” Kapothanasis says. “If you’re an emerging quick lube brand and you’re constantly having to battle with Rite Aid for a half-acre lot, they’re going to be able to pay more than you. So it’s important to make sure that you minimize that competition.”

Establish a lasting impact.

Another important factor for Kapothanasis is having the same efficient operation ability as other quick lubes without the addition of a massive operating expense. He always keeps his franchisees front-of-mind and he knew he wanted to incorporate these ideas while keeping some of the cost down, especially considering that most quick lube operators lease space instead of owning.

“Every day that I come into the office, my goal is to figure out: ‘How do I benefit my franchisees the most?’”

Kapothanasis says. “A lot of it has to do with managing that overhead. If we can mitigate those risks by having a less expensive real estate prospect, that ultimately just means more money in their pocket instead of going to a landlord.”

His willingness to think outside of the box has allowed Kapothanasis to fill a need and solve multiple issues at once, including some that have not even presented themselves fully yet.

“There is going to be a model that is left behind when electric vehicles more meaningfully penetrate the ecosystem.”

Kapothanasis says of the future. “We think that our model is going to be what is left behind. For us, to scale is super important because the timing of it has to work as well.”

Kapothanasis’ case is a persuasive lesson in implementing innovation because when it comes to timing, there is no better time than the present. Creating meaningful strategy towards impactful adaptation now is how quick lubes can ensure prosperity into the future.

JUNE 2022

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AROUND THE INDUSTRY

The lawsuit goes on to say that adding more oil is not an effective solution because too much oil strains and damages gaskets and seals that are meant to protect the engine from oil leaks. This can also cause oil to move to places where it should not reside, causing even more internal damage.

VALVOLINE APPROVED FOR FORMER CHEVRON STATION LOT

A new lawsuit has emerged regarding Hyundai oil consumption. The suit alleges that there are numerous models with defective Nu, Gamma, Theta, Lambda and Kappa engines.

According to CarComplaints.com, owners involved in the lawsuit say that a recall should have been ordered due to the engines allegedly using an ex-

12

cessive amount of oil to the point that they stall and fail.

The Hyundai and Kia class action lawsuit claims that owners and lessees have to frequently check oil levels to a degree that is substantially greater than normal and they allege that they have to spend large amounts of money in order to constantly purchase oil for their vehicles.

A proposal by Valvoline Instant Oil Change to build a 2,088 square foot building on a former Chevron station site in East Cobb, Georgia, has been approved.

According to East Cobb News, this Valvoline location will have three bays and 15 parking spaces. The Chevron station that formerly populated the site was demolished last year after closing in 2020, and the lot has been vacant since that time.

GETTY

HYUNDAI OWNERS FILE OIL CONSUMPTION LAWSUIT

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This proposal was included on the commissioners’ consent agenda during what was a rezoning hearing. Comments submitted prior to the vote by the East Cobb Civic Association are not available at this time.

Ford explained to the National Highway Traffic Safety Administration that there have been 754 reports of wiper failure on the recalled vehicles, but this has not resulted in any injuries or crashes.

Ford started contacting the owners of vehicles involved in the recall on May 23.

Get more industry news at noln.net

REZONING APPROVED FOR TAKE 5 SHOP

Stafford County in Virginia will soon be home to a new Take 5 oil change location.

According to Potomac Local News, a Board of Supervisors has approved a rezoning that will allow a 1,432 square foot Take 5 location to be built.

The building will have three service bays and the ability to perform vehicle oil changes, filter replacements, wiper blade replacements, fluid top-offs and coolant exchanges This will be the first Take 5 location in Northern Virginia.

The Stafford County Planning Commission unanimously approved the proposal for the oil-change shop in March. This vote came four months after Supervisors denied the request and then allowed the business to reapply for rezoning, which waived a rule that would normally mean waiting a year before reapplying.

FORD AND LINCOLN TRUCKS, SUV WINDSHIELD WIPERS RECALLED

Ford is recalling almost 653,000 trucks and SUVs due to an issue with windshield wipers that could result in them not working altogether or even detaching.

According to Consumer Reports, the problem stems from a poorly made part in the wiper assembly.

The recall affects the 2020-2021 Ford F-150 pickup truck, 2020-2021 Ford Expedition and Lincoln Navigator SUVs, and 2020-2022 Ford Super Duty F-250, F-350, F-450 and F-550 trucks.

JUNE 2022

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

THE BATTLE RAGES ON

Massachusetts’ right to repair law is now at the center of the national conversation on aftermarket repair.

BY NOAH BROWN

The struggle for the right to repair is nothing new.

The automotive aftermarket—and other industry aftermarkets alike—have been working to get the tools and information they need from OEMs to make safe and complete repairs on a wide array of devices ranging from phones to cars for decades.

According to the Repair Association, the struggle for access to repair data can be traced back to a U.S. Department of Justice antitrust order filed against IBM in 1956 that forced the company to allow for aftermarket repairers to have access to proper equipment and information.

Fast forward more than half a century, and the front line in the battle for the right to repair in the automotive sector has been shifted to Massachusetts, where in 2020 nearly 2.6 million residents voted to implement statewide legislation that ensured the right to repair for all aftermarket providers.

Aaron Lowe, senior vice president of government and regulatory affairs for the Auto Care Association, says this very clearly and plainly indicated overwhelming support for the independent repair industry.

“Anyone who has wireless data access has to make sure that the customer could direct that repair and diagnostic data to an independent shop from the vehicle if they want to do business with them,” Lowe says. “That was to ensure there was continued competition, that companies could compete for repair business.”

Two weeks after the measure passed in November 2020, the Alliance for Automotive Innovation filed a suit to challenge the decision. A trial was set for the suit in June 2021.

In the meantime, automakers such as Kia and Subaru began disabling all telematic systems in their vehicles in Massachusetts as a way to comply without having to develop the system required by Question 1.

After a week-long trial in June 2021, Lowe says it seemed a decision was imminent; Judge Douglas Woodlock had expressed wanting to have a decision within a month or two.

Then came a delay. And another. And then three more.

The most recent one, which Woodlock issued in April, pushed

S E P T. 2 4 -2 5 • D A L L A S - F O R T W O R T H , T E X A S .

a potential decision for the suit to July 2022, well over a year since the trial started.

“It’s an amazing amount of time, and the delays are surprising, considering that in the earliest stages of the trial he was wanting to get this decided as soon as possible,” Lowe says.

What does that mean for the aftermarket?

Judge Woodlock’s decision would be the first of its kind in the automotive space, and it has the ability to set the tone of the right to repair debate for the rest of the country.

“It’s hard to speculate on exactly what the impact is going to be until we actually see what he says,” Lowe says. “He has a lot of different options and how he can rule on this … we need to see what the substance is.”

This drawn-out process has already benefited OEMs, who have been able to delay compliance on the grounds that federal law preempts the state initiative. To make matters worse, whoever loses the lawsuits is likely to file an appeal, which will drag the process out even more.

“The more this judge delays actually issuing a verdict, the longer we go without actually addressing this whole issue of data, access and compliance,” Lowe says. “It’s a loss ultimately for the car owners in the state of Massachusetts, but it’s a loss for the aftermarket as well.”

Hope on the Horizon As frustrating as the current situation is for the aftermarket, Lowe says there are reasons ot be optimistic.

He points to the fact that a bill such as the one Massachusetts voted for received such overwhelming support as key evidence that the general public is siding with the aftermarket.

A similar bill to the one in Massachusetts is currently working its way through the federal legislature that would impose similar mandates.

As long as shop owners continue to help educate their customers on why the right to repair is important and how they can support local efforts to pass legislation protecting that right, Lowe says the aftermarket is in–and will continue to be in–good fighting shape.

“It’s critically important that, with technology changing, the owner of the vehicle continues to be the one deciding who’s going to be able to access their vehicle to do the repairs. That’s ultimately what’s at stake here,” Lowe says. “We’re going to continue to fight to make sure that repair continues to be open and competitive.”

The ADAPT: Automotive Technology Summit is a three-day event covering the most progressive and pressing trends disrupting the industry. Learn more at adaptsummit.com.

JUNE 2022

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S H O P LO O K

OIL CHANGERS OF DUBLIN, CALIF. OPERATOR:

OIL CHANGERS

LOCATION:

DUBLIN, CALIF.

STAFF SIZE:

7

SHOP SIZE:

3 BAYS

BY MAT T HUDSON PHOTOS BY TERRIFICSHOT

UPDATED RETRO

TECH FRIENDLY

The curb appeal of this Oil Changers location is apparent, and it’s in a great location to catch attention. This Bay Area shop sits on a busy intersection, positioned on the corner of a shopping area.

“It’s in a great location,” says Jenn Bochnowski, Oil Changers retail brand manager. “It’s very easily accessible, which is helpful when trying to make it convenient for our guests.”

As for the shop itself, the arched bay doors and the “sealskin” color scheme with yellow accents make the building unique. While keeping the shop clean and updated, the structure itself has remained to set it apart.

“Those arches are very retro Oil Changers, which I love,” Bochnowski says. “It’s something that we used in the late ‘80s and ‘90s.”

Operators know that happy techs make for happy customers, and Oil Changers considered that with this building. There are dual entrances to the pit area, which make access easier in a three-bay system.

Techs also appreciate walls that clean off easily and retain a nice texture.

The company took a cue from another profit center and brought it into the quick lube bays.

“Something that was interesting is that we tried PVC walls on the inside, similar to what you’d have on a car wash,” Bochnowski says.

With those amenities in place, regular maintenance has been relatively painfree. Bochnowski says that when the company updated the building with new paint, it made a real difference with traffic.

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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

“We more or less saw a 20 percent increase in business once we painted the interior and exterior and updated the car wash,” she says.

AUTOMOTIVE CENTER In keeping with Oil

Changers’ branding, this service center maintains the retro look with banners and memorabilia inside the bays. But there are modern touches throughout, including large TV screens to show service and marketing information and POS stands for each visiting driver.

Given the location, car wash, and updated features, this shop remains a strong performer in the Oil Changers network.

“It’s a great representation of the brand, especially moving forward having three oil change bays and the car wash makes it very convenient,” Bochnowski says.

JUNE 2022

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THE ADAPT: AUTOMOTIVE TECHNOLOGY SUMMIT IS A TWODAY EVENT PROVIDING SHOP OWNERS AND OPERATORS WITH A UNIQUE, UNMATCHED OPPORTUNITY TO LEARN DIRECTLY FROM INDUSTRY LEADERS ON THE MOST PROGRESSIVE AND PRESSING TECHNOLOGY TRENDS DISRUPTING THE AUTOMOTIVE AFTERMARKET

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FROM THE SHOP

c

Invest in your People A look at how shop priorities can overlap EACH MONTH AS WE WRITE THESE BLURBS OF

ADAM

TATUM

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

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

Performance comes from growing your business through people.

ATAT U M

LUCAS MOORE

@VALUBE.COM

business tips and tricks, it can get difficult to continue to produce new and engaging stories that can take your shops to another level. We have plenty of them in our heads, but how many times have you seen these already?

While going over a previous issue, there was a survey in the numbers section. It showed stats from the NOLN Operator Survey for plans of post-pandemic shop improvements. What I noticed was that the absolute number one thing that you should be focusing on only got 13% of the vote—training.

They can all be fixed if you focus on the training. I will try and break down some of the things ranked higher and how they correlate back to proper training investment.

Equipment This was right above training at 14%. I can certainly see where new equipment will offer opportunities for faster services and potentially new services for your location.

So, when you bring these very expensive machines into your locations, what is the first thing that you have to do? Train them how to operate and maintain that piece of equipment. You are going to rely on that initial group learning the equipment to be able to show the next group of new hires or future managers.

There can be so many nuances to the machine that you may end up spending more money training employees on this than the cost of the machine. On top of that, failure to train them properly and timely could lead to very expensive claims when there are mistakes made.

‘Nothing Planned’ Seventeen percent had this response in the survey. Do not be complacent. Each year automobile technology changes and updates. Seventeen percent of operators answered this way. Seventeen percent of you will soon be passed by a competitor doing what you have always been doing.

There are so many ways that you can train your teams on new opportunities that are super cost effective. If you do full-service repair options, for example, your local parts stores hold two to three training classes a year of product knowledge, practical applications and more. Take advantage of these. Many will charge under a hundred dollars, and you can send as many technicians as you want to the training sessions. Investing in these programs expands your team’s knowledge of newer vehicles and potential revenue streams to increase your bottom line.

Additional Staff This one can be a sticky one for me to discuss, not knowing each of your situations and staffing levels. Some of you, I am sure, are looking to add people on due to the increase of business in your markets again. You must have the bodies on the floor to service your customers effectively and that is understandable. However, without the proper training budget put in place, these employees will struggle to keep up or progress forward as you hope. Then you just have a warm body holding a vacuum cleaner hose or potentially not tightening a drain plug fully.

For many operators, “additional staff ” means you want to add better employees to your rosters. With the new generation of employees that are in the marketplace now, they will want to know how they can progress and how quickly.

The Generation Z employee walking in your door has been told that they can be anything that they want to be, and many are told that they should expect to be given opportunities for just being there. Many employees no longer take time with an organization to move up through the ranks. They have aged out in our industry, and we are now dealing with more tech-savvy individuals that can get their information at the touch of a screen. I call them YouTube certified. Many of these applicants are also super intelligent, which you will want.

Put together training programs for your locations. Give them a route to move up in your business. Do you need mechanics? Put together a training program in house to train your own. Opportunity to grow. Do you offer inspections? Put together a training program to give employees a route to this career. Opportunity to grow. Do you want to find better managers for your locations without having to overpay for someone that is not as good as hyped? You guessed it. Put together a training program to find and mold your own people in your own corporate culture.

Concluding my rant on why all things lead back to training and why this should be one of the top things that you are investing in, I hope that some of these may have opened you up to avenues that you did not see before.

Take advantage of vendor training as much of it is free.

Hey, they want you to know their products. Look for equipment and service opportunities that are easy to train others on so that you can expand your offerings.

Invest in 2022 on training and you will find that you have more money in the bank, less warranty claims and potentially less employee turnover. These are things that we are all after.

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Warranty Wrap-Up Be knowledgeable, be responsible, and improve customer service in warranty cases

By Matt Hudson Alice Heart Photography Lucas Moore Photography

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The true test of a shop leader doesn’t happen when operations are running smoothly. The processes and experience gained over the years are put to the test when something goes wrong.

For a quick lube shop, that can be in the form of a customer warranty claim.

With each case, your entire operation comes under review—the services performed, the customer service provided, and the financial implications of a serious claim.

For an operator who has processes in place and a cool head, a warranty claim can provide an opportunity to build a long-term customer relationship. An operator who reacts harshly will certainly lose a customer, and perhaps the funds that go along with settling a claim.

It’s important to get to the bottom of every case, especially when mistakes are made.

“Most warranty claims that our businesses are paying are generally things that you actually did wrong,” says Adam Tatum, director of Operations at Virginia Group and NOLN columnist.

“There are very few warranty things that are parts failures.”

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That realization should help operators and their teams remember to take a pause as they respond to warranty claims. Go through the process and help the customer and your shop toward the best outcome.

Whether it’s a big claim or a small warranty part replacement, take the customer service approach. Check out some best practices around handling warranties and claims from industry experts, and then consult your own legal partners to find the best course of action.

Knowledge is Power The first step to handling any warranty issue is to avoid them in the first place.

It’s essential for operators to follow manufacturer recommendations for fluids and parts, as well as strict service processes that ensure the job is done right every time.

Owner’s manuals, shop software systems, vendors, and other reputable resources can help determine the correct parts and services. That way, your techs

can find out that, for example, some newer Hyundais have a recommended fuel additive service every 5,000 miles for certain situations. Or you might need to make sure you’re using an engine oil with a certain specification, such as DEXOS. Another foundational best practice is to have thorough documentation of each service. This is important not only for the customer’s information, but it also provides a clear record that a shop was exact in its use of recommended products, whether it’s a certain engine oil spec or a part.

“That’s hugely important, especially if the vehicle goes to a dealership,” says Justin Cialella, president and CEO of Victory Lane Quick Oil Change. “The first thing a dealership will say, if they believe it’s a preventative maintenance related service issue, is ask where the vehicle was serviced.”

Specificity is important. For engine oil, Cialella says that it’s not too much to include the API service category, the ILSAC specification, and any OEM specs.

Without thorough documentation it might become difficult to prove that a shop used a certain recommended specification oil if it’s not written clearly on the service invoice.

It can be challenging to keep up with every OEM recommendation for all makes and models, especially because manufacturers might issue new guidance years after vehicles roll off the assembly line.

Checking for technical service bulletins, or TSBs, becomes essential in this case. Tatum says that his shops have computer systems that allow for easy checking, especially if a technician spots a problem on a vehicle.

“If we see a TSB and we do have an issue and see the issue, we put that into the comments,” he says. “We’ll say, ‘Noted leak around power steering pump prior to service. TSB from dealer states potential recall.’”

That’s all part of thorough documentation, meant to safeguard a shop but also to help customers get the most out of their visit.

Shop Service Warranties The fine print that fills up the back of an invoice is important. The shop’s limited warranty covers the parts and labor for a window, often three months and 3,000 miles, depending on the service.

“That basically comes from a position that we have a very, very high confidence that the products we’re using, the filters we’re using, the workmanship, is not going to fail within that interval,” Cialella says.

Most shops will have boilerplate service warranties, especially franchised operations with corporate support. For independent shops looking to review their practices, Cialella recommends the industry trade group as a resource.

Know Your Warranty Rights One of the most crucial pieces of warranty legislation is the Magnuson Moss Warranty Act, which is meant to improve communication to customers about warranty rights.

The law prevents OEMs or dealers from requiring the use of OEM parts and services in order to maintain a warranty.

That means customers are free to take their vehicles to any service shop for service that aligns with their manufacturer recommendations.

Organizations like the Automotive Oil Change Association (AOCA) work to ensure compliance with the act.

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WA R R A N T Y W R A P - U P

“I think the first place they need to go to is the AOCA,” he says. “The AOCA has a wealth of information when it comes to all that type of stuff.”

There are a few best practices to get operators started. First, don’t be tempted to over-extend your warranty. You never know how hard drivers might be treating their vehicles, and an overly generous warranty might leave your shop open to undue liability, Cialella says.

Another key provision in a service warranty is the right to inspect or investigate, Tatum says. Make sure it has language that requires the customer to notify your shop and allow some kind of inspection before they take it somewhere else to get repaired. At that point, it becomes more difficult to assess what went wrong.

“You have to be contacted first to have the opportunity to investigate yourself.

Because there will be people who get their car fixed,” Tatum says.

What About Parts?

While shop warranties generally cover the labor of service, manufacturers of parts also offer various warranties against factory defects. For certain cases, a parts warranty might overlap with your service warranty.

For many parts, shops work with distributors. Those companies can be helpful to learn about various manufacturer warranties and as a starting point if a customer makes a claim. Dave Everett, quick maintenance expert and founder of Dave Everett Consulting, says that operators can start with their vendor partners for big or small cases.

“As an operator, they should let their distributor know about those little things,” says Everett, who spent nearly three decades working for a distributor. “As you’re doing a wiper blade here and a wiper blade there, they add up.

You might have one a month. It could be three or five a month.”

From a customer service standpoint, Tatum says that he finds it easier to replace smaller parts quickly. If a clip fails

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on a wiper blade, for example, he doesn’t believe it’s necessary to track down whether it’s due to an incorrect installation or a faulty clip. He’ll simply replace the wiper and offer a gift card to say: “Sorry for the inconvenience.”

“Not only did you fix the problem, but you gave them an incentive to come back,” he says.

Oil filters are different, however.

While they are small, inexpensive parts, a failing oil filter can lead to expensive vehicle problems. If a case arises that could be the result of a filter malfunction or a service mistake, it’s in everyone's best interest to investigate.

“In those cases, they’re going to need to hang on to that filter, call their distributor, and the distributor will give them the information or send something out to have them picked up, fill out a claim form, then it will be sent to the manufacturer for testing,” Everett says.

Manufacturers have the ability to test specific filters to find out if a manufacturer defect or installation error was the likely cause of a filter failure.

It’s important to find out a clear cause, because customers will always look to the quick lube shop first if it was the last to service a vehicle. The documentation from testing helps protect a shop if it did everything correctly.

“It also protects them (the operator) in many cases,” Everett says. “Because sometimes the claim from the customer is bogus. And when you get the testing from the manufacturer that backs you up, all of a sudden that helps you.”

How To Handle Claims When a customer experiences an issue that they believe is caused by a faulty part or improper service, a warranty claim is initiated. It might be a customer who had their oil changed and found a pool of oil beneath their car the next day. It could be an unrelated issue, like engine knock, that they feel is related to the oil change.

This is where Tatum’s earlier guidance comes into play: Your shop warranty should help ensure that you have the ability to investigate the cause. But the real

first step begins before that, when the customer calls to make that first complaint.

Cialella says that it’s never a good idea to act dismissively toward customer claims.

“The first thing that you do is take every claim seriously,” he says. “The time to handle the claim is not to handle it over the phone with the customer. You take it seriously, you go out and inspect the vehicle, have it brought to your location.”

That’s crucial, Tatum says. He teaches his managers to listen first to customers and repeat back the information. Above all, don’t argue and don’t admit fault. Follow the process and stay composed. Take the customer service approach.

Take a thorough approach and document every step.

“We go out, we look at the vehicle, inspect the vehicle, photograph the vehicle and

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First Response

Make sure your shop team knows the proper steps to take when a customer starts a claim.

State By State

Does your state have warranty requirements related to automotive service?

Here are some examples of state-level laws, courtesy of the Automotive Maintenance and Repair Association. Check with your local jurisdiction for a full list of requirements.

things like the oil dipstick,” Cialella says.

“Any signs of failure or damage, and then we start to work backward from there. If we come to the conclusion right away that this is something that we did wrong, then you step up and handle the issue.”

The documentation should be kept up during a claims process, too. Cialella says that Victory Lane created a ticket system to track progress, investigation, and contact points with the customer. That way, a shop’s attempts to reach a customer and follow the steps are recorded.

Warranty claims might not be an easy part of customer service, but they are among the most important. The ability to turn a bad experience into a positive customer relationship is a prime example.

The documentation, cool-headedness, and process-driven reaction to these cases can put you on the right path.

California: Warranties must be in writing and given to customers with the invoice. They also need to include certain information, according to the law.

Colorado: Warranties must be printed on the invoice.

Florida: Written estimates must indicate what is “guaranteed in connection with the repair work.”

Illinois: Among other requirements, state law sets a minimum repair warranty at 90 days and/or 3,000 miles.

Massachusetts: All repair shops must offer a warranty.

Michigan: Shops are not required to offer a warranty, but if they do, they must be in writing with certain information.

New Hampshire: Invoices must state any guarantees associated with the work performed.

New Jersey: Customers are entitled to written copies of any warranty.

New Mexico: Shops must post the major provisions of a warranty policy prominently in the shop.

Texas: It is considered a deceptive practice to misrepresent the guarantees in a warranty.

Washington: Repair shops must make available a copy of the warranty.

Wisconsin: If a shop offers a warranty, it must be included with the invoice.

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By David Bellm

T

he blazing hot sun beat down on Mike Vasheghani, adding to the burden of rolling a heavily loaded ice-cream cart day after day in his native Iran. It was hard work, but he was glad to do it and proud of his effort. The opportunity to make good money in his neighborhood was worth the sacrifice of toiling outside nine hours a day all summer.

He was only 8 years old.

But even at that young age, Vasheghani was an ambitious entrepreneur who sought ways to better himself. It was a pattern that would serve him throughout his life—applying hard work and tenacity to challenges and coming out on top.

As he neared adulthood, Vasheghani planned to go to college, but there were few opportunities to do so in Iran. So he

came to the United States on a student visa with the intent of returning to his homeland after he graduated. But before he could do so, the 1979 Iranian Revolution brought waves of violence and oppression to his native country.

After a decade of working in the U.S. and hoping for things to change, Vasheghani decided to make America his permanent home. He opened several businesses, including car washes and hotels.

But he had always wanted to build his career in the automotive world.

“I was interested in cars when I was a child back home,” he says. “I love doing technical things with cars, and I was always going to car races.”

Finally, in 1997, Vasheghani realized his dream of owning an automotive service business. He signed on with Kwik Industries to open Kwik Kar Lube and Tune of

I love doing technical things with cars, and I was always going to car races."

—MIKE VASHEGHANI, OWNER, KWIK KAR LUBE AND TUNE MESQUITE

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Eli Mabli Photography

How a lifelong entrepreneur made impacts serving his community Mesquite, Texas, and the shop was turning a profit after two years.

The initial model focused on oil changes, but he had his eyes on expanding the business into a full-service auto repair shop. The agreement he had with Kwik gave him considerable freedom to do so, but the move was difficult nonetheless. Although the one-stop-shop aspect of offering full repair services can be a benefit to customers, it can be difficult to mesh such work with a quick lube shop’s promise of convenience and speed.

In addition, the small staff of his fledgling business made the move even more difficult.

“It was very hard,” Vasheghani says. “I was trying to be the manager, lube tech, customer service person, and then I’d help the mechanic. I had so many issues in the beginning, but I never gave up. Once you decide to do something, you need to stay with it. Because if you change your mind and then go a different way, you’re going to lose your career.”

Running in the Family Vasheghani’s Kwik Kar shop is still going strong in its original location, in the middle-class suburb of Mesquite, just east of Dallas. Through hard work and perseverance, he was able to make repairs and

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Pride, Perseverance, & Passion

quick lube services coexist effectively, and he continues to offer both. With eight bays and 10 employees, the shop is well equipped to handle its average of roughly 65 cars a day on the lube and inspection side, and four to eight cars per day in the repair bays.

Although he has thought about expanding to other locations, Vasheghani feels it’s best to focus all of his attention on his one original shop and make the most of it.

“I always wanted to open another shop and grow my business,” he says.

“But I didn’t, because I believe one business, if you run it right, is better than having five businesses and you don’t run them well.”

More recently, Vasheghani brought his sons, Sumun and Sianak, into the business.

“I needed help,” Vasheghani says.

“They started to work with me after they finished college in 2014. They were supposed to go on to get a Ph.D. and be

Coming Back

In 25 years of business, Vasheghani has a family of return customers who support the longevity of his shop.

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doctors. But it was good for me that they changed their mind. The business is run far better now, because I’ve got good help. It’s much, much easier for me.”

Among the many responsibilities the two sons assumed when they joined the business is the job of marketing and promotion. They’ve tried many different methods and media, including Google ads and social media posts. But none have been nearly as effective as the time-honored method of sending reminders to existing customers.

“We’re really trying to send all our customers emails,” Sumun says. “That way, they don’t forget about the sticker on the window. They can also get an

email for an oil change and a survey on how we did. Then we can monitor the surveys on Google, Brandify, and Valvoline Express Care.”

No matter what methods the Vasheghani family uses to bring in customers, it ultimately comes down to doing good work and fostering referrals.

“Word of mouth has built the foundation to where Mike doesn’t really have to stress out about marketing too much,” Sumun says. “Customers even come from Frisco, an hour away.”

To keep his clientele spreading the good word to other potential customers, the Vasheghanis strive to provide exceptional customer service, which is rooted in the quality of the company’s staff.

“The motivation comes mostly from Mike’s actions,” Sumun says. “When employees see someone from the upper level showing up every day to the shop, it says a lot about caring for the employee. They can always depend on him. When you go to lube centers where the owner is absent, there are just too many issues.”

To this platform of personal care and day-to-day involvement, Mike adds further motivation with commission-based incentives and competition bonuses for employees. The greatest testament to the effectiveness of Mike’s management and motivation methods is the shop’s low turnover.

“The average employee has been with us seven years,” says Sumun. “The longest right now is about 15 years.”

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Additionally, he says they’ve had no problems hiring lately, even amid the labor shortages that are crippling many businesses as this is being written.

A Business with Heart Mike will turn 69 this November. But that’s just a number to him—he had to stop and think for a few moments when we asked how old he is. And that says a lot about how he approaches his life and his business. It’s not about age. It’s about drive, passion, and the desire to do better.

At a point in life when many business owners would be strongly considering retirement, Mike still works six days a week, from 8 a.m. to 6 p.m. Granted, he’s no longer on his feet all day working in the shop. But he still has greater endurance than many people half his age.

“Mike doesn’t take any days off,” Sumun says. “He’s just always there.”

And although the Vasheghanis are quite serious about their work, it’s readily apparent that they run the business with heart and soul, as evidenced by the easygoing warmth and genuineness that flows through our conversation.

That spirit certainly isn’t lost on customers.

“After 25 years in business, I’ve still got customers that I’ve had since the beginning,” Vasheghani says. “Their families come in.

Their sons come in. Their grandsons come

in. Most of the people in our city know me.

They trust me for my service.”

Along with Vasheghani and his sons, customers have also come to know Leo, their 150-pound Belarus-born Cane Corso Mastiff dog.

“Leo is an icon,” Sumun says. “He’s our security. He’s the mascot. He’s our brand ambassador—how we set ourselves apart.”

Besides making people smile every day, Leo pulls his weight in the business too.

Sumun says that Leo can help put customers at ease during the stress of getting a vehicle repaired or serviced.

To accommodate giant Leo and the two dogs that preceded him—tiny dachshunds, ironically — Mike built a dog park

After 25 years in business, I’ve still got customers that I’ve had since the beginning."

—MIKE VASHEGHANI, OWNER, KWIK KAR LUBE AND TUNE MESQUITE

behind the shop. While Leo enjoys the freedom to roam independently, other dog lovers are attracted to the business, knowing they can bring their dogs and let them enjoy the space as well.

The combined effect of all these elements is a calm, relaxed confidence—the warmth of family and the precision of a well-honed business formula that’s been developed over decades.

But that’s not to say Vasheghani is coasting. Far from it. He says that his location has the potential to grow and reach as many as 20 employees.

Vasheghani knows no other way than to put all he’s got into what he’s doing.

“It’s in my blood,” he says. “Everybody says to me, ‘Hey, slow down.

You’re working too hard.’ But I can’t.

I like the challenge. I want only to be better and better the next day. That’s what my goal is.

“If you believe in what you’re doing, you can make it,” Mike continues. “Running a lube center isn’t easy. I’ve seen a lot of other locations that couldn’t handle it, or they have a problem. They gave up after four or five years. You have to make a commitment to yourself.”

And the business is in good family hands.

Sumun jokes, “If Mike doesn’t want to retire at some point, I’ll have to put a defibrillator in the bays. Everyone’s going to have a lube-tech certification and an AED certification.”

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THE TRAINING EFFECT

Don’t stop training at the new hire. Make it a constant part of the job for managers

BY ZANE DOUGL AS

FOR OPERATORS OF ANY CAR CARE

Focus Shift Staker came up with the idea for an advanced management training course six years ago, with the idea of helping newer managers learn the industry. Through one of FullSpeed Automotive’s brands, Grease Monkey International, Staker puts on classes for those types of managers.

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Staker is also involved with the Automotive Oil Change Association (AOCA) and after serving as vice president of the board of directors, he will soon take the role as president.

“I began to realize that our young managers in these quick lube centers, very few have ever had any formal or even informal type of management experience or training,” Staker says.

“They learned their management techniques from the manager that probably preceded them.”

Staker saw an issue with the direction of management years ago and felt his expertise could help mitigate some of those problems. With many new managers, they are a trusted employee that elevates to a role they’ve never done before following their company’s new vacancy in the manager role.

The lack of formal training for many managers at quick lubes across

the country has become an issue and courses like the one Staker teaches are working to fix that. While some may not come for fear of costs, the training course is free, meaning travel costs are the biggest barriers.

“There was a concern before of ‘will the franchisees pay the expense to have their manager or assistant manager or an up-and-comer who aspires to be a manager come to this course,” Staker says.

Staker says the turnout has been high and the demand for courses like these are high. Being able to train a potential future manager within your business is seen as a goal of many owners and current managers.

Perspective Shift Through his experience in management, Staker has noticed a change in what’s important for both employees and managers in the quick lube industry.

GETTY

business, it all starts with management. After all, many say that it’s mostly a “people business.”

Management is a key component in the industry, but the more management positions that are opening up, the more demand there is for training in that area. Tom Staker, the international director of training and new services at FullSpeed Automotive, has helped to offer training courses to new or future managers looking for help.

“I’ve been a franchisee for years, I’ve been a corporate executive for years,” Staker says. “Now, all I want to do is pass along things I know to the young folks in the industry.”

Future managers can seek out training opportunities to further their careers and learn more about the industry as a whole, including these courses from Staker. In this article, learn how a professional trainer grows excellent managers.

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of their biggest problems is getting and keeping employees. Staker believes this isn’t just a quick lube industry problem.

“It’s not just us, this is I believe universal,” Staker says. “Even in the food industry, it’s getting the folks and then keeping them.”

This goes in tandem with the shift in culture throughout the industry as younger people are moving around more often and the lack of understanding between different age groups is widening.

The different ways that management has changed is something Staker has been able to keep up with himself thanks to his decades of experience. He now wants to make sure the skills he has learned get passed down to the next generation of new managers.

Younger employees respond differently to different types of management.

“I developed this management course to bring these young folks in who are eager to learn, they’re wonderful young people,” Staker says. “We have a two-day training course where we not only go through all of the basics of the franchise processes, but then we also get into management of people—which has changed today.”

Staker says the change starts with attitude and expectations. Staker says that young people respond more to recognition and are more productive if they know what their contributions are to the business.

The idea is that young people want to help and learn how to do everything themselves, while also learning what they can improve on. Staker says that it’s important that young people are involved in the direction of the company and that they’re aware of their own impact.

“One of the biggest things that we’ve had to recognize is that the needs and the things that motivate the employees that we’re seeing today are more slanted towards the idea of creating a culture of recognition,” Staker says.

Staker believes there are positives and negatives, but the most important thing is for managers to learn how to understand their employees. It’s a lack of training that can lead to old business practices—something Staker says would not work with the younger generations of today.

Keeping Employees Thanks partially to a global pandemic that led to severe job loss, the ability to get and keep employees in the quick lube business is another issue that can be tackled through management training.

Many young managers that Staker has talked to have told him that one

Putting it Together The lack of manager expertise is something that may always be part of the quick lube industry. Many managers start off in different roles and with the ever-changing landscape of the workforce, practices will come and go.

But there are still some things that need to be learned, and people like Staker are keeping up with the changes to best teach management training.

Keeping employees and learning new practices while adapting to the landscape is essential for managers who have no experience.

“I oftentimes get young folks who, I know the owner’s got aspirations for that person and he’s not the manager yet, but he’s probably preparing him,” Staker says. “We got the classes going and had success stories. We had people go back excited, motivated.”

Travel costs and administrative costs can be a barrier to management training courses, but the payoff to investments like training can go a long way.

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C A S E S T U DY

Express Car Care Center

of Sinking Spring, Pennsylvania

DESIGNING A COMFORTABLE LOBBY

A comfortable lobby won’t make or break your oil change business, but investing in it could be in small business owners’ best interest

BY ZANE DOUGL AS

CUSTOMERS LIKE TO SHOP AROUND, and

getting that repeat visitor can be a challenge. First impressions matter, and something like a dirty lobby or poor customer service can make or break a customer’s experience.

Running a quick lube, like any business, will have a focus on customer service and interaction. A friendly demeanor and safe environment can be keys to bringing in new customers and becoming a staple of other customers’ quick lube needs. That same thing can be applied to the setup and comfortability of the quick lube’s lobby.

For fully drive-thru quick lubes, the waiting area isn’t necessary. But for those who use them, the space can be an important piece of the puzzle. Keeping clean, providing entertainment and

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satisfying the customer all go into growing a small business.

The ability to provide a reliable service without any hitches comes first, but your ability to do that could be called into question by unpleasant appearances. For Kwik Kar at Craig Ranch owner Brian Pellerin, the effort put into a comfortable waiting room can only help.

“We built our shop and one of the things we wanted was to make sure we had a nice comfortable waiting room,” Pellerin says.

The Challenge Pellerin says the challenge of keeping customers and showing you are a reliable business can be tough if you don’t pay attention to little details. Everything will be looked at by a customer.

The Solutions Keep Things Squeaky Quick lube shop owners should focus the extra space they have on a clean design and overall appearance more than anything. The cleanliness of his shop is something that Pellerin doesn’t overlook.

Based in McKinney, Texas, Pellerin runs Kwik Kar at Craig Ranch. His main focus is his shop’s reliability in providing its services, but he has taken steps to make every part of the experience comfortable for customers.

Pellerin has taken a no-mistakes approach, saying the most important thing about a lobby or waiting room is that it’s clean. When a customer walks in, they don’t want anything to look wrong or out of place. If a shop can’t get little details right then what could they get wrong when they work your vehicle.

“I don’t think people come here because of the lobby, but I do think that when they see that it’s clean in the lobby and see that it’s clean outside it’s like, ‘Hey, they at least care,’” Pellerin says. “We do get a little bit of feedback on how clean it is.”

The main goal of Pellerin is still to make sure he and his team run a reliable operation, but the first impressions are still an important point of focus. Customer service is taken seriously as well, which keeps in line with his goals of a neat appearance and reliability.

There is a lot more that goes into a successful lobby, but the first

SECOGES PHOTOGRAPHICS, ELI MABLI PHOTOGRAPHY

While they may appreciate the service, they first have to get that far without noticing a dirty lobby or other potential problems. Much like a house going on sale, anything that is wrong with the house will give the impression that there is much more wrong under the surface.

The lobby is important in this regard and the maintenance of a comfortable waiting room can help to attract customers.

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Kwik Kar Lube and Tune

of Mesquite, Texas

impression, Pellerin says, will be the most important thing.

Entertainment and Add-ons The tidiness of the lobby is important to establish your shop as a serious business to Pellerin, but he also understands the importance of entertainment and good design choices.

“You don’t want to save money on something that’s going to be there for 20 years,” Pellerin says. “You don’t have to go overboard and buy marble or something, you just have to get something that looks nice and tasteful.”

A lot of money goes into starting a business, so it can be tempting to cut costs where it seems like it won’t matter, but Pellerin urges against this idea.

Things like flooring and interior design don’t seem as important, but these are things that will not change for long periods of time.

Small business owners don’t have to break the bank, but Pellerin says that decisions like these need to be taken seriously. The costs won’t be too much if you’re smart and think about the long-term value.

For entertainment, Pellerin turns to a couple small things that don’t necessarily set him apart from other quick lubes,

but do reach his goals of providing a safe and comfortable environment. Pellerin’s lobby is equipped with two television sets. One is for entertainment, while the other lists the services that Kwik Kar at Craig Ranch provides.

“I’ve got one that’s for entertainment and we’ve got the volume turned up because I don’t want them to necessarily hear all the hollering and screaming going on outside the shop,” Pellerin says. “[...] I have another TV that I call my silent marketing TV.” The televisions provide entertainment, while also advertising his business, bringing in its own value. The advertisement of their own services is something Pellerin says will sometimes help customers ask about problems that their vehicles might have.

Another piece of entertainment that can help the business and the customers is a kids play area. Attached to the lobby at Kwik Kar at Craig Ranch is a children’s play area. The room is connected to the lobby, making sure parents can stay in the lobby without the kids running off or getting lost.

While it’s not exactly entertainment for parents, it is an enjoyable area for kids and provides something to do while parents are taking their vehicles in.

“The room is set up to where they can’t escape the lobby, they have to come through the lobby to get back outside,” Pellerin says.

The Aftermath Once you’ve chosen a layout, furniture, and major investments for your lobby, it’s the details and upkeep that make a difference over the long term. Pellerin demonstrates this with a clean and entertaining lobby.

Pellerin says that the state of his waiting area is a reflection of the level of service his shop provides. He wants customers to feel that if the company is paying close attention to the quality of the lobby, then the technicians will do the same with their vehicles in the shop bays.

The Takeaway To Pellerin, the service will always be the most important, but the customer lobby is a solid investment to keep the standards of the company up. But at the end of the day, the lobby still has to go hand-in-hand with the most important things in the business.

“I really think it’s more important what we do with our customer service and what we do to keep our customers happy,” Pellerin says. “That’s king.”

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Update on New Engine Oil Specification Developments

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

In April, we updated you on the development of API PC-12 oils for diesel engines and indicted there may be some news with gasoline engine oil standards. Since then, development of PC-12 oils has progressed and we are anticipating a request for a new gasoline engine oil standard. API is working with the engine manufacturers, additive companies, oil marketers and other interested parties on both of these.

For PC-12, there are currently two different paths being taken for the development of the new diesel engine oils that will further refine the differences between C subcategory and F subcategory oils. The New Category Development Team (NCDT), who manages the development of new API Diesel Engine Oil Service Categories, is awaiting information from the EPA that will help provide guidance on the development of the F subcategory diesel engine oils that will meet the needs of newer engine technologies.

Once the EPA establishes NOx emission limits, this will allow engine manufacturers to better understand how oil marketers can help engine manufacturers reach these limits by changing the composition of engine oil. The Engine Manufacturers Association (EMA) can then look at how the chemistry of the oil can help them to extend the useful life of a diesel particulate filter and the complete aftertreatment system. Since the request from EMA indicates a push towards even lower xW-20 viscosities, the new F subcategory is intended to replace FA-4 and does not need to retain backwards compatibility.

In keeping with precedent, the NCDT is working on preserving the backward compatibility of current C subcategory oils. It can be challenging to preserve existing oil performance specifications; especially as older engine hardware becomes obsolete. With PC-12, two engine tests will be going away because engine hardware is not available, so new tests are being developed to ensure backward compatibility with CK-4 and previous generation oils. These two tests - Mack T11 (soot handling) and Mack T12 (ring and liner wear) - will need to be replaced.

New Gasoline Engine Oil Specification A request for a new gasoline engine oil specification to API is anticipated soon from ILSAC. The specification, expected to be called ILSAC GF-7, will replace the current GF-6 specification. Annex C of API 1509 - Engine Oil Licensing and Certification System establishes the consensusbased process for developing new gasoline engine oil standards for API certification marks. This helps to ensure that technically-sound, reliable performance standards are created to meet the needs of the variety of engines in the present and for future engine designs.

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There are three phases to the creation of a new specification • Phase 1 - Category request and evaluation • Phase 2 - Specification development • Phase 3-Adoption of the Auto/Oil Advisory Panel (AOAP) specification.

Once the request is received, it immediately begins the first of three steps in Phase 1. Step 1 is the request for new specification by an individual, company, or association for a new definition of oil performance. The request is made to the chair of the API Lubricants Group. The request for a new specification must include adequate data and justification for the proposed specification.

Potential criteria include: • Impending government regulations • Consumer-driven needs • New hardware design or service requirements • Field problems encountered with current oils Once reviewed the AOAP forms s from the API Lubricants Group and ILSAC. Upon approval, Step 2 begins with the AOAP working to determine the need and timing for the new specification by considering numerous factors. This includes: • What is the proposed change and why it is required?

• Does available data support the request?

• When is it needed in the marketplace?

• What are potential impacts on engines, consumers and the environment?

• How might the change impact existing performance standards?

• What performance or field tests are needed?

• Are the tests available and, if not, how much time is needed to develop the tests?

Step 3 is the decision on need for a new specification. If there is favorable consensus, AOAP proceeds with development and documents basis for their determination that there is a need. Phase 2 then begins which is specification development.

API will continue to keep you updated on the development of new gas and diesel engine oil specifications. If you have questions or need additional information, contact the API Engine Oil Licensing and Certification System at eolcs@api.org or find us at api.org/EOLCS.

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Great Employees Aren’t Born, They’re Trained

BY BILL BEYERLE, AUTOMOTIVE INSTALLED SALES MANAGER, CHEVRON LUBRICANTS KIM TULLY-SUTTON, LEAD MARKETING SPECIALIST, CHEVRON LUBRICANTS

How much time are you investing to maximize the return on one of your most valuable assets – your employees? Do your employees understand and follow through on what you need them to do? Are they knowledgeable about your products and services? Can they answer customers’ questions with authority and confidence? Are they delivering the service experience that you and, more importantly, your customers expect?

Studies have shown that investing in employee training will pay back many times over, and in many ways. Employees who understand what is expected of them, and are capable of meeting or exceeding those expectations, are happier and more satisfied in their jobs. Plus, employee satisfaction translates to customer satisfaction, which leads to higher retention, more and better reviews, increased new customer acquisition and revenue growth.

Training is not simply about helping employees master assigned tasks, whether that is performing oil changes, writing up service orders or processing payments. Training is about instilling confidence and empowering employees to feel secure and comfortable in their jobs so they can be more effective and proactive. Yes, they need to acquire some essential skills, but good training is about helping employees think and feel like subject matter experts so that they can in turn gain the trust of your customers.

Are your employees able to explain the difference between the various full synthetic motor oil product options? In particular, why one product within the same brand line is priced higher than another? Your employees should be able to educate customers to help them make a product decision that is best for them and their vehicle. Employees that can help customers make educated purchase decisions will feel better about themselves, and by extension better about their workplace.

One fundamental question is: do your employees understand your objectives as the business owner? Do they understand how the business generates revenue or calculates profit, which has an impact on their compensation? A good portion of your employee’s training should be focused on ensuring alignment with the goals of the business and how each employee contributes. If you are running a promotion, or looking to

manage inventory on a certain item, make sure your employees are fully informed so that they can educate customers in a no-pressure manner.

Customer service skills may not come naturally to some people, but those can be taught with practice. Employees must understand the importance of making customers feel welcomed and appreciated, like smiling, calling them by their name, and talking through inspection findings. Since customers cannot visualize what is going on under the hood, employees should explain the services being performed so that customers can have confidence that their vehicles are well cared for.

Training is not a one-time event. The principles of what is being trained should be reinforced regularly through real-life examples; for instance, acknowledging positive behavior or congratulating employees for an incremental sale. And if an employee falls short, take a moment to explain how they can do better next time. Show your employees that you are invested in their progress.

Unexpected rewards, either planned or unplanned, like an occasional team lunch or a gift card for a local coffee shop for exceptional customer service, can go a long way toward building team spirit and a sense of belonging as well as making your employees feel valued and appreciated.

Employee appreciation is especially important at a time when the oil change business – like so many others – is experiencing staff shortages and turnover. Now is a good time to refocus training efforts to make sure your employees are not only better equipped to do their jobs but understand and feel confident about their roles as contributors to the overall success of the business.

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.

Kim Tully-Sutton has been with Chevron Lubricants for more than 12 years and is currently the lead marketing specialist supporting Havoline®, Havoline xpress lube®, Chevron xpress lube® and Techron®. You can reach her at Kimberly.Sutton@chevron.com.

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Silencing Engine Sounds It May Be Impossible with Today’s Technology

BY LARRY HAMMER, TECHNICAL SERVICES

It is not uncommon to receive customer complaints involving noises that may resemble noisy valve lifters or bearing clearance related noises.

Other sounds may include piston slap during cold starts lasting for a couple of minutes in cold temperatures. Some of these noises are a normal characteristic for the engine with no means of silencing the sounds. Many hours of diagnostic time can be invested in attempting to satisfy the customer’s concern when there is no possible way to quieten the noise.

Be prepared to identify those normal characteristic noises and share those symptoms with the customer.

Cold Start-up Knocks GM V-8 engines have been plagued with engine knock complaints when temperatures are 50 degrees F or colder and are more pronounced during the initial fi rst cold start. The noise is a common customer complaint without a solution. While the symptoms are frustrating to the vehicle owner, the noise does not have an effect on the longevity of the engine components. Personally, I have a 5.7L engine with 297K miles on it and it has encountered cold start-up knock since new. The noise usually originates from one of the following conditions: • Engine Knock…Piston knock is a common occurrence due to the short skirt aluminum piston design. The symptom occurs due to a clearance between the piston skirt and the cylinder wall. The symptoms are especially a problem when the ambient temperature is below 50 degrees F, following a cold start. During these temperatures the piston rocks/ slaps against the cylinder wall creating a knocking sound that many confuse with bearing clearance issues. The condition corrects itself once the engine temperature increases, causing the piston skirt to expand and tighten in its bore. Piston pin design has also been a contributing factor.

• Carbon Knock…Carbon build-up on the crown of a piston and cylinder head results in physical contact, promoting a knocking sound. Combustion chamber cleaners are available to help remove the carbon build-up. Some vehicle manufacturers recommend removing the cylinder head and physically removing the carbon.

In either case, piston knock due to piston skirt to cylinder wall clearance or carbon knock will usually diminish following engine warm-up.

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New Technology Promotes Engine Noises Direct Injection is widely used by many vehicle manufacturers. Unlike systems fitted with Multiport Fuel Injection, which is relatively quiet, the Direct Injection system generates some clicking or ticking noises that result in customer complaints, especially during cold starts and warmup operation. With this system, fuel is injected directly into each cylinder under high pressure exceeding 2000 psi, resulting in the noise.

A distinct clicking or ticking noise emanates from the high-pressure fuel pump that can be very noisy during cold starts and quietens following engine warm-up. The sound is more noticeable when standing outside the vehicle, with the hood up, or when the vehicle is next to a building such as a drive-through.

These sounds are to be considered a normal characteristic of the Direct Injection high pressure system and no attempt to quieten the noises should be performed.

Ticking Noises Lasting Up to 50 Seconds Always check for factory service bulletins that may illustrate the symptoms encountered by the vehicle owner. Having this information to share with them reinforces our diagnosis. Consider the following illustrated in GM Service Bulletin PIP5104A. The customer may complain of a cold engine ticking noise that may diminish within 50 seconds following a cold start. Once this time has elapsed, the noise diminishes. The noise is the result of a design characteristic programmed in the ECM to better comply with cold start emissions. Vehicles affected include: 2009-2013 Cadillac Escalade, 20092015 Chevrolet Express, Silverado, Suburban, GMC Savana and Sierra with the following V8 RPO Codes: 6.0L-L76, L96, LC8, LY6 and 6.2LL94, L9H. The ticking noise is combustion taking place in the exhaust manifold.

Once the 50 second time lapse occurs, the timing is advanced, and the noise diminishes. Make certain the noise is coming from the exhaust manifold, as the symptom could be mistaken for an engine-related noise previously mentioned.

Summary: New technology poses many challenges. My 50 plus years in the automotive industry has impressed upon me many changes in automotive technology and performance characteristics that were previously considered unacceptable but are now considered a normal characteristic.

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Oil Inventory Optimization & Management Ensuring you have what you need when you need it

Servicing today’s cars can be complex and challenging. OEM specific oil formulations like GM dexos 1 and the proliferation of engine oil viscosities and specifications have made it difficult to have the right oil on hand.

Here are some keys to ensure you have what you need when you need it: 1. Rationalize SKUs Normally, the larger the package size the lower the cost per gallon.

This has led many operators to move many products into a bulk tank.

From a cost perspective, this makes sense. However, the inventory cost and operational challenges this creates must be considered. Is there adequate space for bulk tanks? How fast are you turning the inventory?

How many products can your oil distributor deliver at a time?

Analyzing product usage and identifying the “right” package size will save you money and help make your team more efficient. For example, convert the ATF bulk tank to an engine oil that is higher volume. Another example is to discontinue stocking high mileage engine oils in your bulk tank and use a high mileage additive to convert your conventional, synthetic blend or full synthetic engine oil to a high mileage product. Further, you can move bulk or drum packaging to bag in the box- in some cases the cost per gallon may be closer to the larger packaging than you think.

2. Implement and Utilize an ERP System with Inventory Management Capability There are many highly capable ERP / back office systems for a quick lube operator to take advantage of. One of the key components of a good system is a robust inventory management tool. In addition to knowing what you have on hand, you can view historical sales data and take a proactive approach to ensure you have what you need when you need it.

3. Utilize Digital Remote Tank Monitoring Technology can make us more efficient and that is certainly the case with digital remote tank monitoring. Utilizing digital tank monitoring can help you: • Manage bulk inventory more accurately and reduce shrinkage • Provide electronic monitoring in real time to provide your supplier insight into your tank levels to prevent runouts • Help your supplier improve efficiencies by allowing deliveries through optimal logistics and timing while maximizing delivery economics • Provides software to help manage, monitor, report and alert.

Most systems offer mobile app as well.

Utilizing digital remote tank monitoring can be especially important if you operate multiple sites.

4. Establish a Bulk Oil “Keep Fill” Program While tapping into technology in the form of digital tank monitors is a great way to manage inventory, utilizing a “keep fill” program can also be a very effective approach. Working with your oil supplier to establish product usage based on historical data will help you maintain the correct amount of inventory and prevent costly runouts or having too much inventory on hand. This should be reviewed on a quarterly basis to ensure necessary adjustments are made to address changing trends. Also, if you foresee a short-term change in usage this should be communicated to your supplier. An example could be a promotion you are going to run that could spike usage.

5. Oil Supplier Efficiency & Collaboration Helping your oil distributor be more operationally efficient is probably not something you have been concerned about in the past. Efficient oil distribution is your supplier’s concern and rightly so. However, collaborating with your supply partner can offer benefits to your business in the form of potentially lower pricing as a result of increased operational efficiency of your supplier and reducing the number of deliveries. Here are some examples: • Based on inventory usage and needs, allow your distributor to make fewer but larger deliveries. An example could be that you are normally receiving weekly deliveries but not filling your bulk tank. By filling your tank you would have fewer deliveries and as a result, fewer invoices, fewer disruptions and more efficiency.

• As previously mentioned, optimizing and rationalizing bulk oil tanks is very important to your operation. It is also a very important aspect of supplier operational efficiency. For example, most bulk delivery trucks have 5-7 compartments. If you order more bulk products than can be delivered it will require additional trucks / deliveries that lead to disruptions of your operation.

• Work with your supplier to identify best days and times for deliveries. What are your busiest days? Can orders be delivered before or after normal business hours?

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Save Gas and Make Money with Summer Travel

BY JAY LITSEY, SENIOR CHANNEL MARKETING DIRECTOR, CALUMET PERFORMANCE BRANDS AND PROUD OWNER OF THE ROYAL PURPLE AND BEL-RAY BRANDS

Filled up your gas tank recently? Sticker-shock at the pump? You are not alone. Consumers feel this pinch along with all of us, but with that comes a profit opportunity.

Selling Fast Fuel-System Services Engine oil services most likely will be the number one service opportunity for a long time to come, but you know there are other vehicle systems that need maintenance. The challenge is to get consumers to reach that “Aha!” moment with your help. The good news is that Americans are traveling again, commuting again, wanting to take a much-deserved vacation and sending their teens to college, most likely in a used car they paid way too much for and need to last for years. The good news is that services such as fast fuel-system services can provide much-needed peace of mind and pocketbook relief for consumers, and a profit solution for yourself. A recent consumer study noted that synthetic consumers are looking for promotional offers, so let’s send them some! They also have almost two cars per household, so double or quadruple the opportunity for retention if you are using service certificates good on their next service.

Selling Higher Level Benefits The grandparents, moms and dads, young working couples, singles, and first-jobbers coming into your shop may not be enthusiasts in the sense of wanting to do repairs themselves, but do not confuse that with them not being enthusiasts. We need to expand the definition of enthusiasm to include other things they are enthusiastic about, like peace of mind.

Other examples could be: 1. Saving money during periods of high gas prices and inflation.

2. Getting teens to college safely.

3. Getting their “new to them” used car or kid car roadworthy.

4. Pulling out into traffic confidently.

5. Getting ready for that summer trip.

6. Going back to the office after a long hiatus.

All of these are potential stress points, but we can be their stressreducers. What’s exciting is that this approach gives the greeter something to ask about upfront other than oil type to make the lead-in to an expanded set of services more natural. Lead with that “diagnosis,” and it’s a perfect runway to offering synthetic oil, synthetic automatic transmission fluid (ATF) and premium fuel system services, just to name a few.

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Speaking to Consumers in Their Language Building on the idea of meeting the consumer where they are, I always like to begin with the insight and then decide what to do based on what we learn. Figuring out how to best sell to consumers is no different.

What is top-of-mind in the U.S. right now? Let’s assume that pocketbook matters are at the top of the list. Let’s also assume that our consumers are not gearheads, but they are involved in some of the same things others are every season.

Notice in the headline that I led with “summer travel” versus a percentage of fuel-mileage improvement? Do the same with your consumers! Start with what they are planning, and you’ll get to the specific services and then benefits naturally.

Special Note: Some fuel system products have varying levels of effectiveness and proven claims. Make sure to pick the right product that you and the supplier can stand behind, ideally fast to use and with substantiated benefits you can tell the consumer with confidence. If your supplier provides free point of purchase (POP) materials, set them up.

Put them out as an informed consumer is prepared for your conversation.

Right-Selling Versus Up-selling Some people in the industry use the term up-selling, but I know as a consumer myself that nothing is more annoying than forced up-selling.

What I am fine with is if someone takes the time to find out about my complete needs and then offers solutions. Others call this right-selling, which is preferable.

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

The net of all the topics we’ve just covered is that if we do all the things listed here consistently, consumers’ vehicles will run better. You will also naturally sell more services to more people, which can solve a lot of dayto-day payroll issues. Don’t forget, as you test and learn, to share your success stories, too!

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

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“Our Best Customer, Is An Educated Buyer!”

We have had this as our motto for years “Our Best Customer, Is An Educated Buyer!” Training, Service, Values, Knowledge, Learning and Skills all play a role in how we help educate or how we ourselves are educated. Think about it, if you are making a decision wouldn’t you want to make an “educated” decision? Customers should trust and believe in you, they should not feel they are being told what to do or given one-word explanations. A customer deserves to understand the value!

Picture this “Um ma’am, uh I have your air filter here and it is dirty would you like it replaced?” Customer Says “No”. Why would they have said yes?

Because it is dirty? Do they understand what dirty means? Most likely they do but do they understand the benefits of having a clean air filter or replacing an air filter in a timely manner? Most likely in this instance the customer said “NO” because they did not understand the value, did not understand the service, or why it was beneficial? You have to remember the why, what, when, where? Customers deserve to understand and then make a reply. If they understand they will, in turn, trust you and you will most likely receive a lot more YES from your customers!

Make it a culture, make it a policy to train, educate, and build on value and service. If you do; every employee will live it and, in turn, customers will see the difference. The No will turn into Yes and the attitude will be positive. There will be a difference in the level of service offered if it is a policy to train on service, a policy to train on value and education.

Remember employees have to be educated on policy and services before they can educate the customer.

“If you can’t explain it simply, you don’t understand it well enough.”

—Albert Einstein Think about your favorite customers who trust you because they understand what you are doing. This customer comes in and you are so comfortable with them you feel like you can offer them anything because they believe in you. You are their hero; you keep their vehicle on the road, you spend time with them and you explain the services. If you think about it “Our Best Customer, Is An Educated Buyer” who would not want their customer to be educated on what they are going to purchase? When your customer trusts you and believes in you, they are making an “Educated” decision to come to you to have their vehicle serviced.

“Believe In Yourself, And Anything Is Possible!”

Believe in yourself, do not let the word “no” dictate the next customer and how the rest of your day goes. Continue on and remember to ask every time. These are services that protect your customer’s investment… Whether it is just an oil change, Oil System Cleaner, Engine Treatment, or a Fuel System cleaner, with the services you offer you are helping keep your customer’s vehicle on the road longer. I am sure you are familiar of the saying maintain it now or repair it later. Well, the average age of a vehicle on the road today is 12 years old. That means it is cheaper to maintain your customers vehicle than for them to have a car payment! Believe in what you are doing, believe in the services you offer and “Educate” the customer.

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Ask for Kendall GT-1 High Mileage Booster. ®

®

Specifically made for high mileage vehicles, GT-1 High Mileage Booster is formulated to increase corrosion resistance, cleanliness, and protection for your engine to help it keep running for even more miles to come. Ask for a Booster at your next oil change. Find out more at KendallHMB.com.

© Phillips 66 ® Company. Kendall® and its respective logos and products are registered trademarks of Phillips 66 Company in the U.S.A. and other countries. BL-KEN-224597 38

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AO CA C O R N E R

c

Demand Elasticity and Average Age of Fleet A big-picture look at the vehicles we service EVERY INDUSTRY HAS SEVERAL KEY DRIVERS OF

BRETT

FRASER

is the member programs specialist for the Automotive Oil Change Association (AOCA), the only trade group for the quick maintenance industry.

INFO

COURTESY KRISTY BABB

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

economic activity. In the oil change industry, some of these key drivers are number of vehicle registrations (market size), worldwide crude oil prices (cost of providing services), and, as with most industries, the overall economic health (disposable income). To glean actionable intel from these key drivers, we should combine the economic driver trends with the concept of demand elasticity.

With a product that is less elastic, some negative economic developments, such as inflation, may be less detrimental to demand, but have long-term effects, nonetheless. A perfect example of inelastic demand comes with the story of convicted felon Martin Shkreli. As CEO of Turing Pharmaceuticals, he increased the price of an anti-parasitic drug, common in treatments for those with HIV, from $13.50 per pill to $750 per pill. The demand for such a product is inelastic, as those who require treatment need the life-saving medicine regardless of price. In similar fashion, you may not be able to afford the gas at the current prices, but you can also not afford to skip work.

With the number of vehicle registrations remaining roughly the same and the price of crude oil increasing, the cost of services increases.

This then needs to be passed onto the customer, at least partially, to maintain a sustainable business.

This is a particularly relevant question as we consider the average age of cars, and a particularly useful basis of analysis when combined with the concept of demand elasticity. It makes sense that the longer the car is on the road, the more preventative maintenance it will require. According to the Bureau of Transportation Statistics, from 1995 to 2016, the average age of fleet increased from 8.4 years to 11.6 years. According to IBISWorld, this trend has continued through 2022.

There are a few causal factors that people generally agree upon to explain why cars are on the road longer.

One is the increased quality of production. As technological advances continue it is reasonable to expect that production quality will continue to improve.

This is where we tie the potential accelerators for market change together with the lube industry.

Because we see the negative effects (price increase)

that the relatively inelastic demand of crude oil has caused in the short-term, more actions may be taken to make oil demand more elastic. This would include actions, like federal incentives, that expedite the diversification of power sources. For example, there is already a $7,500 tax break to purchase certain new electric cars. There are also plenty of incentives provided to power homes by more sustainable sources, like solar power. These directly affect the demand for crude oil and should affect gas prices positively. The less demand, the cheaper it is.

With incentives that encourage buying behavior, there may be a correlating decrease in age of fleet.

Even if policymakers increase the number of incentives to further accelerate the movement towards alternative fuel sources and address the demand elasticity issue, those effects on age of fleet would likely be short term.

Hypothetically, let’s say that the age of fleet reverts back to 1995 levels, and cars are on the road for eight or nine years on average. The newer cars that were recently purchased will still likely be on the road 12 years later as the decrease was pushed by incentive, not by mechanical failure. After the incentives that encouraged that market shift sunset, it is not only reasonable to assume that the average of fleet would return to around 12 years but continue to move past it as production quality further improves.

With all of this in mind, it is important to understand that change like this is not necessarily good or bad. Change is inevitable. Those who adapt can thrive, and, at least for the moment, the industry seems to be in a phase of adapting to the new technology of alternative power sources. It does not seem that we are in the midst of a society-wide transportation-mode shift.

The existing preventative maintenance infrastructure can adapt with the technology and there is no specific pathway you need to choose. Of course, something may happen next week, next month, or next year, that makes all this analysis irrelevant.

But, by paying attention to market-change accelerators, especially as they relate to the key drivers of economic health in the oil change industry, we can trust that we will be well-prepared for whatever the future brings.

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c

LEADING EDGE

The Basket

How to manage your workload

LENNY

SAUCIER

Lenny Saucier has been serving the automotive aftermarket and its future leaders since 2000. He serves as the director of retail training for Fullspeed Automotive.

LSAUCIER @FULLSPEEDAUTOMOTIVE.COM

A Balanced Basket The antidote is the basket. A metaphorical store container for your visions, to-dos, and maps. Your basket is always in your hand, happily swinging around your torso level ever-present to your day perfectly fit for your journey. Too big of a basket weighs you down, forcing you to switch it from side to side as it aches

42

your back arms and shoulders. Too small of a basket lacks ample space to house your tasks. As it swings with your stride, your thoughts drop out, forcing you to stop, regroup and restart. Your basket is just the size you need to be successful.

The contents of your basket are for your success.

Like the Collin’s Bus Theory, there is a place and reason for all your items in your basket. There is a time where you bring in new items, times you pull them out to use and times you come to the realization that that piece no longer belongs in your basket. As the leader of your basket, you must be able to decide what is needed in your arsenal, and what gets cast out. Not to be forgotten about, but not able to be used on this part of your journey.

Your villain will constantly try and add new things to your basket. Your curse (if left unchecked) will distract you from your path, give you data that will cloud your navigation as you leave your river and flow right into the swamp. Your lack of understanding of your basket’s capacity fools you into carrying more into your basket, straining your body, and spilling out into the murky waters. Your journey comes to a halt, you must find your cargo, reset your priorities, and navigate out of your swamp back to your path.

Here’s a hypothetical exercise: Me: John, cup your hands together like you are trying to hold water. Now tell me all your duties at work John: (going through his job in his mind) Well I must do this, and I am responsible for that and this other thing.

Me: Great, now imagine your hands are a basket. I want you to put all your duties in that basket. (John looks deep into his palms) Is your basket full?

John: Yes, there is a lot of stuff in there.

Me: OK, so you got a lot of stuff in your basket that you must take care of. If your basket is full, how can you carry the tasks that you are not in your basket?

John: Well… I can’t!

Me: Great! Now you understand.

COURTESY LENNY SUACIER

WE LIVE IN A GREAT BIG AND BUSY WORLD THAT

bombards us with thoughts, technology, memories, and emotion.

Your day, your cadence, and your emotions are all driven off what you did, what others do, and what you want to do. It really is a lot to take in when you are navigating the journey. Some keep a blind eye to what is going on, the bliss of closed eyes keeps them happy, going through the day as if the sunrise was a one-person show, and they are the star. Nothing happens that they don’t want, and everything happens for them. All because they chose not to see their surroundings.

Then there are the others. The cursed who see and analyze all, playing the past movie clips in their mind as they absorb the constantly changing surroundings.

They have a clear vision of what they want in life, how it needs to happen, and they are driven to make the changes for the better because they see better outcomes in their mind (and have mapped out the journey to get there).

The villain in your storyline comes from within.

While some would argue that this external foe distracts you from your goals, it is actually an internal struggle as you continue to scour your surroundings for things to correct and paths—all while trying to piece it into your ultimate vision. What was once a river to conquest that had some turns to navigate though, quickly becomes a swamp that tricks you to believe you are where you are supposed to be while more dangers lurk around you.

Panic sets in, you are so deep in the swamp you can no longer remember where you are (or why you made the choices to go there). The choices are plentiful and give no clear understanding of the steps you are taking and if they are getting you any closer to your desired outcome. Most succumb to the swamp, feeding off what It gives you. Finding a new comfort in being lost and watching the one man show project daily in their mind called mediocracy.

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