NOLN - November 2020

COST-FREE DIGITAL ENGAGEMENT

New and Improved Ryan Frisby has been updating his shops for more than 15 years. The changes aren’t just to equipment—his operation adapts with the times as well.

PAGE 42

MODERN MARVELS DEFINING THE QUICK LUBE OF 2020 IS ONLY THE START TO A BRIGHT FUTURE PAGE 28

HOW TO KEEP A COOL HEAD

PAGE 39

THE RIGHT WAY TO LET EMPLOYEES GO

PAGE 51

SUCCESSFUL STRATEGIES FOR A NEW ACQUISITION NOVEMBER 2020 / NOLN.NET

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A victory without friction

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2020

VOLUME NO.

35

ISSUE NO.

11

ANGIE HARWOOD

CONTENTS

NOVEMBER

COVER STORY From social media to the shop floor, Ryan Frisby runs a modern quick

lube. What exactly does that mean

for him and other operations? PAGE 28

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CONTENTS

11 ONLINE

Make data work for you 13 EDITOR’S LETTER

Forging ahead in 2020 and beyond 15 BY THE NUMBERS

The essential quick lube metrics

QUICK HITS 18 INDUSTRY INSIGHT When COVID-19 sparks positive change 20 AROUND THE INDUSTRY

Multiple brands pick up shops 23 ADAPT

Don’t fall to ransomware 24 SHOP LOOK

One roof, many services

SERVICE 39 PIT STOP

How to keep your cool 42 SALES+MARKETING

The savvy digital operation 46 CASE STUDY

New ownership? No problem 51 LEADERSHIP

When to let go of a team member

COLUMNS 26 FROM THE SHOP

Season’s teachings

28 COVER STORY

Today’s Shop, Explained

NOLN looks at the operations, labor, and equipment at three shops to define the modern quick lube.

BY M AT T H U D S O N

BY A DA M TAT U M

Close Attention Whether it’s the service menu or the staff pay schedule, Jeff Perrault works to be up to date in shop operations.

55 AOCA CORNER

Make training gains

BY TO M S TA K E R

58 LEADING EDGE

Only you can prevent loss of leadership

BY LENNY SAUCIER

NOLN, VOL. 35, NO. 11 (ISSN 1071-1260), IS PUBLISHED MONTHLY BY 10 MISSIONS MEDIA, LLC, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804. COPYRIGHT ©2020 BY 10 MISSIONS MEDIA LLC. ALL RIGHTS RESERVED. NOLN CONTENT MAY NOT BE PHOTOCOPIED, REPRODUCED, OR REDISTRIBUTED WITHOUT THE CONSENT OF THE PUBLISHER. APPLICATION TO MAIL AT PERIODICAL RATES IS PENDING AT ST. PAUL, MN. POSTMASTERS SEND ADDRESS CHANGES TO: NOLN, 571 SNELLING AVENUE NORTH, ST. PAUL, MN 55104-1804.

6

BETH LEIPHOLTZ

FE ATURE

NOLN.NET

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S E R U T A E F NEWORE APPS RT M T SUPPO A E R G

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EDITORIAL VP CONTE NT AND E VE NT S

Bryce Evans

E DITORIAL DIRECTOR

Anna Zeck

AS SOCIATE E DITOR

Matt Hudson STAFF WRITE R

Abby Patterson

SPECIAL PROJECT S E DITORS

Nora Johnson, Jordan Wiklund CONTRIB UTING WRITE RS

Tom Staker, Lenny Saucier, Adam Tatum

EDITORIAL ADVISORY BOARD

Lenny Saucier, VP of HR and Training, Victory Lane Quick Oil Change Pete Frey, Operator, Take 5 Oil Change Matt Webb, Operator, Premier Oil Change Jim Harrington, VP of Operations, Victory Lane Quick Oil Change Bill Floyd, Operator, Lucas Oil Centers

SALES VP AND PUBLISHE R

Chris Messer, cmesser@10missions.com AS SOCIATE PUBLISHE R

Andrew Johnson, ajohnson@10missions.com ADVE RTISING SALES & MARKE TING

Kyle Shaw, kshaw@10missions.com CLIE NT SE RVICE SPECIALIST

Jen George, jgeorge@10missions.com

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CU STOME R SUCCES S RE PRESE NTATIVE

Shayna Smith, ssmith@10missions.com

ART AND PRODUCTION ART DIRECTOR

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Zach Pate

GR APHIC DESIGNE RS

Nicole Olson, Morgan Glisczinski PRODUCTION ARTIST

Lauren Coleman

10 M I S S I O N S M E D I A PRESIDE NT

Jay DeWitt

GE NE R AL MANAGE R AND PRODUCTION MANAGE R

- Free Estimates - 30+ Years Experience

Mariah Straub

MARKE TING SE RVICES MANAGE R

Miranda Jama

MARKE TING COMMUNICATIONS SPECIALIST

Kasey Lanenberg E VE NT PRODUCE R

Kate Fahlen

SE NIOR DIGITAL ME DIA STR ATEGIST

Tiffany Fowler

DIGITAL ME DIA AS SISTANT

Nina Kayfes

BOOKKE E PE R AND CLIE NT SE RVICE SPECIALIST

Meghann Moore

QuickPit (TM)

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Equipment

Lube Buildings

ADMINISTR ATIVE AS SISTANT

Corey Steinhoff

HOW TO REACH US

571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web 10missions.com The annual subscription rate is $72 (U.S.A. only) for companies not qualified to receive complimentary copies of NOLN. Past issue single copies are $8.

Go to noln.net/backissues Send letters to news@noln.net.

For high-quality reprints or e-prints of articles in this issue, call 651.846.9488 or email reprints@noln.net.

Opinions expressed in NOLN are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.

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BY T H E N U M B E R S

11.20

VISIT

NOLN.NET TODAY

PODCAST

THE NOLN PODCAST

BLOG

MAKING TELEMATICS USEFUL

GETTY

In a presentation at the 2020 AASA Technology Conference, Sandeep Kar presented a map of the Toronto area as an example of telematics data at work. The animated, computer-generated image showed dots representing cars, which increased as the morning rush hour began.

“You can see at the bottom near the lake, there is an area that has a red dot, which means there is a high vehicle density,” said Kar, the chief strategy officer at Fleet Complete.

If those data show peak traffic at a certain intersection at 9:05 a.m., wouldn’t it make sense for an quick lube in the area to advertise on a digital billboard in that place at that time?

That’s a marketing strategy built from telematics. Read more about how telematics help shops at noln.net/teleshop.

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

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

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

The podcast page on NOLN.net has great episodes coming out twice monthly. Get the latest about a brand new consulting service that’s launching for quick lube owners. Also, explore tips for getting back on track after a drop in efficiency.

Recent episodes of The NOLN Podcast can be found at noln.net/podcasts. You can also download them through Apple Podcasts, Google Podcasts and Spotify, as well as other platforms.

Be sure to rate and comment on the podcast on your favorite platform, which helps us reach you better!

Visit noln.net/subscribe.

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

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

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

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EDIT LETTER

IN MORE “NORMAL” TIMES, RIGHT

ONE INDUSTRY Looking to other segments is critical for future success

now, our team would be gearing up for one of our craziest weeks of the year: Industry Week in Las Vegas for the SEMA and AAPEX shows. It’s always a week that consists of long days, short nights, countless handshakes, and battling crowds to make it to your meeting on time.

Thanks to COVID-19, though, it’s fairly quiet around here—and not just because I’m isolated in a makeshift office to allow for social distancing in our building.

Really, this year’s Industry Week would’ve been our most hectic one yet, considering how much our company has grown and the segments we now cover. Earlier this summer, our parent company, 10 Missions Media, acquired Modern Tire Dealer and Auto Service Professional, which now has us covering the entire aftermarket. After starting as a fledgling collision repair publication (which eventually became FenderBender magazine) in 1999, we’ve transitioned into a media company that today also serves business leaders in the auto service, quick lube and tire dealer segments of the industry, along with a number of other products that reach those “specialty” folks in between.

It’s been quite the growth trajectory.

At this point, we’re more than just publications. We have multimedia, live events, marketing services, digital elements, etc.

The more we’ve grown, the more we’ve taken on, and the more we’ve learned about each different segment, we realized very quickly that most of the issues, concerns, strategies and success stories are all very similar, if not the same.

It’s become more and more glaring how, as each segment continues to

11.20

specialize and focus more granularly because of shifting technology, marketplaces and outside pressures, that everyone has become more isolated.

There’s an air of, “This is what we do, and we do it for this person.” Yes, specialization and focusing on your customers is critical to success, but it’s easy to lose sight of big picture needs and solutions. Something we will continue to push for, and pride ourselves on, is bringing those lessons from each industry segment together for the betterment of everyone.

That’s the idea behind our ADAPT: Automotive Technology Summit this coming May in Nashville. We want to bring the entire industry together to discuss the solutions to the industry’s most progressive and pressing technology trends. Our goal is to give you a seat at the table in discussing the future of this industry. The auto industry isn’t just the automakers and giant corporations deciding who wins, who loses and how you run your business. The independent shop services 75 percent of out-of-warranty vehicles on the road. This is not the OEM’s industry. This is your industry, and we’re all in this together.

B RYC E E VA N S

VP CONTENT & EVENTS, 10 MISSIONS MEDIA

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®

boltontechnology.com

ital vehicle portant than ever. Our dig im re mo is g vin mo les d their vehic photos, videos, notes an Keeping customers and tools allow you to share n tio ica un . mm me co l-ti r rea me in inspections and custo ht to their phones—all stomers by texting it rig cu h wit s entire service ce rvi the t se ou ed gh nd recomme the loop throu in rs me sto cu d an ng ns worki ns and a boost in repair This keeps your technicia ies, streamlined operatio nc cie effi d se rea inc in can easily text to pay process—resulting hicle is ready, customers ve ir the en wh en Th %.

39 a breeze. orders by an average of ones making checkout ph ir the m fro ht rig nt pointme and set up their next ap shop, no matter ns are available for every tio op on cti pe ins le hic . Get the same Best of all, our digital ve nt system? No worries me ge na ma No e. us u tem yo tablet. which management sys m your smartphone or fro all — gy olo hn tec award-winning

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BY T H E N U M B E R S

11.20

THE LATEST INFORMATION The bedrock KPIs for quick lubes are car counts and ticket averages.

For decades, National Oil and Lube News has tracked those in the U.S. market through its annual operator survey.

In the 2020 survey, respondents represented operations with more repair services, which led to an average longer bay times and fewer oil changes across all shops represented. Car counts slowed but remain strong over 2019, and shops had about the same staff sizes—before COVID-19 hit, that is.

How do the numbers stack up with your operation? Find out below.

GETTY

KEY PERFORMANCE INDICATORS FOR QUICK LUBES TICKET AVERAGE:

CAR COUNT:

MINUTES IN BAY:

$72.49

33

21

DOWN $8.57 FROM 2019

DOWN 2 FROM 2019

UP 4 FROM 2019

DAILY OIL CHANGES PERFORMED:

BREAK-EVEN CAR COUNT:

EMPLOYEES PER STORE:

29

21

6

DOWN 5.5 FROM 2019

DOWN 2 FROM 2019

DOWN 0.5 FROM 2019

FIND OUT MORE

Ticket averages running a bit low? Shops are capitalizing on synthetic oil sales, which help boost tickets and keep customers’ vehicles on the roads for longer.

If you missed it, check out the October issue of NOLN for a comprehensive look at how synthetic oil grew in the quick lube industry, as well as how operators adopted the products and found success.

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SPONSORED CONTENT

Building Trust Through Technology Kukui DVI adds a level of transparency to each repair

All great relationships, personal and professional, rely on trust. Trust becomes even more important when one party is recommending large investments to the other.

In the automotive repair industry, a customer-shop relationship is just that. Customers who sometimes have no automotive knowledge are put in a vulnerable position when talking to a shop about the needed repairs for their vehicle. Big money can be involved in the discussion, and customers want to be sure that they are doing what they need to maintain their vehicle without feeling like they are being “ripped off”.

Mitch Moncur, owner of Denny’s Auto in Riverton, Utah, has been able to build trust with his customers by using Kukui DVI. The digital inspections have strengthened the relationship between customers and his shop, pushing Denny’s Auto to continue to grow.

ADDED TRANSPARENCY To build trust, Moncur ensures that there is a level of transparency with his customers, and digital vehicle inspections through Kukui provide that. By allowing technicians to take photos and videos of specific vehicle parts, a full digital report can then be sent directly to the customer’s phone or email. This photographic snapshot provides clients the evidence they need to better understand vehicle recommendations, and doesn’t leave any unanswered questions or doubt.

“Kukui DVI lets us be even more transparent than what we were previously capable of, and we always want to be as transparent as we possibly can,” he explains. “Our customers absolutely love it, and it builds that level of overall trust.”

Digital inspections become even more useful with customers who are newer to the shop, or may have had unfortunate experiences at a previous shop. In an instance like this, Moncur is able to show the cautious customer the progression of photos from one DVI report to another. This way, customers have visual proof of the part wearing down, and can feel confident about their choice of shop and purchasing decisions.

EASY TO USE FOR ALL With all new technology comes a learning curve. Luckily, for Moncur, the learning curve for Kukui DVI was less than a day with his team.

“Using Kukui DVI is easy on the service writer side and easy on the technician side,” he explains. “I have a technician who has been with us since 1993, he learned how to do it in like a day, it’s easy for all generations.”

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On the owner side, Kukui has made it easy for Moncur to track how many DVIs his team has sent out, along with the conversion ratio and other key KPIs. He also has a 30 minute call once a month with someone from Kukui to help grow his business.

“It's amazing, I’ve learned so much more about my business,” he says.

The simple, easy-to-use format is also helpful to customers, and makes reading their digital inspection report quick and digestible, no matter how much previous vehicle knowledge they have.

“Our customers absolutely love it because all of our recommendations on the inspection are color-coded,” Moncur explains. “So they get their email, and it will show all the pictures and videos and technician comments.”

Within the report, customers will see a green section noting everything that looks good on their vehicle. Then there's a yellow section, these are the repairs that need to be looked at in the near future. Lastly, the red section, showcasing the items that need to be taken care of immediately.

“They like it because it acts as a built-in priority list for them,” he says.

EXPANDING TECHNOLOGY Moving digital is the best way to stay up-to-date in the industry and attract younger customers who rely more heavily on technology.

“If you want to stay relevant in the automotive industry, you have to be cutting edge,” Moncur says. “You have to be sending pictures and you have to be taking videos.”

As more and more customers from younger generations enter your shop, new challenges of trust arise.

“Our industry has a harder time earning the trust of younger generations,” he explains. “They've never really had experience at an automotive repair shop and they're scared they're gonna get screwed over. If you can visually show them what's going on with their car, you're going to have a customer for life.”

If you would like to learn more about Kukui, visit kukui.com/rw or call (877) 695-6008

10/21/20 1:39 PM

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AROUND THE INDUSTRY

20

ADAPT

23

SHOP LOOK

24

PHIL ROSE PHOTOGRAPHY

QUICK HITS

INDUSTRY INSIGHT

SHOP LOOK Joining separate quick lube and full repair segments under one roof? See how it looks in this month’s spotlight. PAGE 24

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INDUSTRY INSIGHT

SILVER LININGS

How the pandemic has revealed some positive impacts on the industry B Y A B B Y PAT T E R S O N

18

GETTY

CORONAVIRUS, SOCIAL DISTANCING,

and “during these uncertain times” keep looming in our vocabulary for 2020. The words are associated with a negative condition.

COVID-19 has dragged on the world’s health, economy, and society’s overall mental wellbeing. And while small businesses have been hit hard, even causing most to lay off workers or shut down completely, owners are still able to find bright spots in light of current events.

Three-quarters of respondents in a survey from the Institute for Corporate

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to accommodate customers during this time, about 92 percent of operators overall said the shop’s outlook for the rest of the year was a positive one.

Just take a look at East Albemarle Xpress Lube in Albemarle, N.C. Allen Furr, manager of the facility, said since the pandemic, the shop was able to actually add 10 percent to his customer base with the changes he made.

In fact, the best month the quick lube ever had was in June 2020. So, how did he beat the pandemic odds? Elevating the whole service experience. Here are just some of the aspects that the pandemic has made a positive impact on in his shop.

92

percent of operators said their shop’s outlook for the rest of the year was positive.

NOLN COVID-19 Survey

Productivity said that they believed their organization’s culture has been affected in a positive way by the pandemic, which could be associated with the acceptance of telework pushing workers out of offices and a focus on employee wellbeing. Like many businesses, quick lube operators have had to innovate their processes, like adapting cleaning procedures or even changing up their business models.

With 64 percent of operators in the NOLN COVID-19 Survey saying they had changed some of their shop processes

Communication According to Furr, wearing face masks hasn’t been the easiest. He says it can be hard to understand what the customer wants, and it makes it even more difficult without facial expressions, too.

“The challenge is making sure we are doing what the customer asks,” Furr says. “We want to keep our distance from them, but we still have to do what they want as well.”

Furr’s usual repeat business is 87 percent of his customer base, but in April and May it was at 75 percent.

Because car count remained the same or increased, he knew that a lot of new customers were coming through the door, which means creating a relationship was important right off the bat.

How do you ensure that you’re still meeting your customers’ needs in a time without shaking hands and getting in close contact? Increase your communication skills. One aspect Furr stressed with his staff was that the level of customer service needed to be top-notch. He urged staff to show that through more communication instead of gestures.

This meant going over the customer’s receipt more thoroughly to

tell them exactly what services their team performed on the vehicle, what other services were recommended, and why. And throughout the service, Furr personally tries to speak to every single customer that walks through the door, and makes sure to tell each customer, “I’m glad you’re here today, but my goal is for you to come back again.” For him, it’s about creating a more loyal customer base and keeping up with that standard of service.

With the lack of a friendly handshake, facial expressions hidden under masks, and a need for social distancing, a boost in communication was needed to fill in the gaps. If actions speak louder than words, the current situation requires words to take the lead. Without this change, Furr says the return for new customers would not have been there.

Efficiency Many business owners have changed their processes and don’t plan on going back to their old ways.

Before the pandemic was even a thought, Furr had customers pull around the back of his shop, shake the customers hand, and have them jump out of their car so the technician could drive it into the bay. This was a struggle for Furr, because cars were disorganized and techs weren’t sure of which car was next.

Since the pandemic, the shop now requires customers to pull into the bay themselves and wait in the vehicle, which kept the workers and customers safe from touchpoints, saved extra bay time—putting them at eight minutes per vehicle versus 15 minutes—and took some of the guesswork out of “who’s next in line?” This is one of his processes that Furr plans on keeping after the dust from the pandemic settles.

“It’s a change for the good,” Furr says.

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QH

AROUND THE INDUSTRY

VICTORY LANE SIGNS FIRST GA. FRANCHISEES

Victory Lane Quick Oil Change has signed its first Georgia franchisee, according to a press release.

New franchise owners Dwayne and Carlette Doles of Dole’s Oil and Lube LLC have committed to their first Victory Lane franchise store in Atlanta.

In August, Victory Lane added four new franchisees, three in North Carolina and one in Michigan.

HIGHLINE ACQUIRES PLEWS RETAIL

Valvoline announced that it has acquired Einstein’s Oilery of Idaho and Westco Lube of Missouri and Kansas.

The deals add 33 locations to the Valvoline Instant Oil Change portfolio, according to a press release. The Einstein’s Oilery deal brings 12 stores in the

Boise area, and they will be rebranded as VIOCs. The Westco deal brings another 21 existing VIOC stores under company ownership in the Kansas City, Topeka and Wichita areas.

Both deals are expected to close in the first quarter of 2021.

INDIANA QUICK LUBE GIVES BACK

A quick lube in Greensburg, Ind., held a fundraiser at its shop to support its local United Fund, reports the Greensburg Daily News.

According to the report, Davis and Daughters Quick Lube recently held a “Quick Lube Day” at its shop, donating $20 per oil change to benefit the United Fund.

20

Owner Ross Davis and his staff were able to raise $1,000 toward the Decatur County United Fund’s goal of $520,000.

The Decatur County United Fund mission is: “Mobilizing the power of our community to develop and maintain resources that meet human needs.”

HIGHLINE ACQUIRES PLEWS RETAIL

In an effort to reduce greenhouse gas emissions, California Governor Gavin Newsom has signed an executive order that bans the sale of new gas cars and trucks by 2035.

“Our cars shouldn’t make wildfires worse and create more days filled with smoky air,” said the governor. “Cars shouldn’t melt glaciers or rise sea levels threatening our cherished beaches and coastlines.”

NPR reports that this is the most aggressive clear-car policy in the U.S. After the 15-year deadline, gas cars will still be able to be owned and sold on the used-car market.

VALVOLINE.WIDENCOLLECTIVE.COM

VALVOLINE PICKS UP LOCATIONS IN 3 STATES

Highline Aftermarket has expanded its product offering with the acquisition of Plews Retail, according to a press release.

The distributor of automotive and industrial tools and accessories will have brands Amflo, Lubrimatic, and Tru-Flate, join Highline’s brands, like Prime Guard, Service Champ, Rain-X, Shout, Windex, among others.

Plews Retail is Highline’s fifth acquisition since the company formed back in 2016.

The company currently has 15 distribution centers and eight manufacturing facilities.

NOLN.NET

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thus, greater fuel efficiency.

As NOLN has explored quite a bit, NEWearly TAKEchallenges 5 FRANCHISEES OPEN injection UP SHOP the for direct IN TENNESSEE came with extra valve deposits. Now a new issue has emerged that presents New Take 5 Oil coming Change out franchisees concern about what’s of the and Jon Olin recently engine,Lance ratherKinerk than what’s inside. heldAaGreen grandCar opening for story their store Reports says in Donelson, Tenn., according a company that a recent study suggeststothat direct press release. injection engines produce more black Olin and Kinerkwhich werecould college soccer carbon aerosols, add to teammates, and after pursing other caatmospheric warming.

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Strickland Brothers 10 Minute Oil Change just keeps on growing.

According to a press release, the franchiser recently signed another franchisee in the Washington D.C. area with plans to open up four locations in the near future.

Strickland Brothers also just recently opened up its first prototype store in Winston-Salem, N.C., last Friday, October 2.

These new locations follow the acquisition of eight stores across five different states within DIRECT INJECTION MAY two months: one location in Havelock, N.C., one location HAVE UNINTENDED EFFECTS in Chester, Va., one location in Louisville, Ky., twoNearly locations inautomaker Indiana (Sellersburg every has and Floyds Knobs), and three locations direct-injection technology in in Tennessee (Tullahoma, Shelbyville, their latest engines.

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APRIL 2020

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REGISTRATION IS NOW OPEN! ATTEND ADAPT TO EXPAND YOUR KNOWLEDGE ON: • HOW TO EFFICIENTLY AND EFFECTIVELY OPERATE ON ANY VEHICLE • WHAT NEW TRENDS YOU CAN EXPECT IN VEHICULAR DESIGN • HOW TO PREPARE FOR INDUSTRY ADVANCEMENTS

D O N ’ T M I S S O U T O N T H E I N D U S T RY ’ S N E W E S T E V E N T — R E G I S T E R T O D AY !

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THE ADAPT: AUTOMOTIVE TECHNOLOGY SUMMIT IS A THREE-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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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 ADAPT INTERVIEW

LOCATION EQUITY IN AN AUTONOMOUS FUTURE

THINKSTOCK

The future of autonomous technology appears to be limitless— unless you live in a limited area.

Omar Ahmad is the deputy director at the National Advanced Driving Simulator (NADS), located on the university’s campus.

Ahmad heads one of NADS’ research programs, which is called Automated Driving Systems (ADS) for Rural America. It aims to bring awareness to the unique challenges of driving autonomous vehicles on rural roads.

In February 2019, Des Moines, Iowa, received over one foot of snow, according to the National Weather Service. Autonomous vehicles are able to operate via the use of sensors and cameras that are placed throughout the vehicle. These sensors are intentionally designed to pick up everything in its view, but in states like Iowa, that view can often be restricted due to weather conditions.

“We want to avoid solely testing on urban roadways,” Ahmad says, “because the solutions will be very urban-centric.”

To read more about this research, head to adaptautomotive.com/ RuralHurdle.

M A Y 1 0 –1 1 • N A S H V I L L E , T E N N .

Check out the growing list of multimedia on the ADAPT site.

Hopefully your shop hasn’t had to deal with a ransomware attack. You don’t want your shop’s digitally stored information to be stolen and held hostage.

While that’s an extreme case, the steps you can take to avoid these situations are also great guidelines for computer use in your shop.

Chris Deater is the team lead for technical support at Sage Microsystems, which is now part of the DRB Systems brand. He goes through what a ransomware attack is and follows with a bunch of easy, effective tips for safe computing.

ADAPT TREND REPORT Head to the ADAPT website to sign up for the ADAPT Trend Report newsletter to have the latest news, strategies and transportation trends sent to your inbox every week. Visit adaptautomotive.com/newsletter

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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.

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QH

S H O P LO O K

LYNDEN LUBE OPERATOR:

ROB HEERSPINK

LOCATION:

LYNDEN, WASH.

STAFF SIZE:

15

SHOP SIZE:

3 BAYS, 8,000 SQUARE FEET AVERAGE DAILY CAR COUNT:

60

TICKET AVERAGE:

$78

BY TESS COLLINS PHOTOS BY PHIL ROSE PHOTOGRAPHY

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BEST OF BOTH WORLDS Lynden Lube in Lynden, Wash., has a full service auto repair facility and an oil change center in the same location, separated by a customer check-in area. Having both businesses under one roof is helpful, not only for customers, but for the staff that works there as well, says owner Rob Heerspink.

“With having the repair bay next to it, lube guys have full access to ASE-certified mechanics,” Heerspink says.

“We can get it figured out as a team.”

RENOVATION BENEFITS Construction to expand the roadway meant that Lynden Lube was too close to the road.

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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

Because of this, the location needed to be renovated.

While doing this, Heerspink decided to remodel two repair bays by digging out the basement and turning them to quick lube lanes, which brought the total to three quick lube lanes.

During the remodel, the shop also added six bays for the repair facility. Adding the lanes tripled the car count, Heerspink says.

LUXURIOUS LOBBY The reception area was modeled after a doctor’s office to which Heerspink’s wife, Cheryl, works next. It turns out, its lobby was decorated by a local designer, so Lynden Lube hired her to decorate its waiting area. The area has a TV, Keurig and water and also features a WiFi bar, where customers can set up and plug in their devices while they’re waiting. Within the lounge, there’s a piece of artwork that was commissioned by a local artist to highlight the history of the property.

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FROM THE SHOP

It’s the Most Wonderful Time of the Year (Really, It Can Be)

Take advantage of this holiday sales opportunity to great effect

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

@VALUBE.COM

presents and family gatherings. But to those in our industry, the best money-making week of the year is Thanksgiving week. It’s the busiest week of the year, and some would say, a make-or-break week for the year’s revenue with double or more in customers coming through your doors. That is a lot of opportunity to impress and grow your business with new clientele.

If you really want to maximize this opportunity, take note of some of the tips below to take your shop to the next level.

Consider instituting blackout dates.

This magical week of business does not last for two or three days, but for nearly a week prior to Thanksgiving Day. Generally, around the prior Thursday, you will see the uptick begin. To make sure that you have the staffing each day and avoid those slow service times, set a few days that are not allowed to be vacation days.

You may get some pushback from a few staff members, and that is expected.

In the end, you will be thankful to have a team ready to work each day with these increases.

Schedule multiple teams.

On the busier days—the Monday through Wednesday leading up—schedule a team for each bay. Depending on your setup and your staffing, this may be easier said than done. However, if you can, you will notice that there is a huge advantage to this. The teams will all work with a focus on their bays and not bouncing or bunny hopping. That can lead to mistakes, confusion and potential claims.

A claim during this week could kill any profit for which you could have been hoping. Work smarter, not harder.

Bring pizza!

You should be very busy this week. With the increased business, it may be a little harder to cut breaks as you normally would each day. Get your teams some pizza,

26

grill out for them or something along those lines. They will be able to eat and continue going. They will feel appreciated and will work harder for you. If it’s just a simple $30 or $40 per day, is it not worth it for the increased revenue that you will receive with all your employees continuing to service the customers visiting your locations?

Run a special.

Now, I am not suggesting you lower your oil change prices or send out a bunch of coupons that may or may not make it to your locations. Try, on the other hand, to set up some additive specials or maybe wipers at buy one, get one free. These little things might provide a bump to that ol’ ticket average and that bottom line.

Make sure you are ready for the business.

One thing that sometimes gets overlooked is inventory on hand. Many companies do not always want to buy ahead for “what ifs” or “maybes,” but you will be thankful you did. I always start ramping up our fluid orders at the beginning of the month.

But why? Many of your oil suppliers have multiple customers doing the same as you and some wait until the last minute. These warehouses are not unlimited in size and neither are the trucks and number of drivers that deliver them. Think ahead and order a little heavier each week leading up. The same goes for filters and supplies. Be ready. You will be glad that you are when you are not hindered by waiting for parts trucks to show up.

I hope that some of these tips and tricks will help you take your opportunity to the next level.

They have worked for me and many others in the past. Try one or two and see how they work for you.

Most important though is to have fun and reap the rewards of a hard week’s work with some turkey and fixings when its all over. You see, it can end up being the most wonderful time of the year if you play your cards right.

LUCAS MOORE

TO MOST, THE HEADLINE EVOKES SNOWFLAKES,

NOLN.NET

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You have questions.

Valvoline is here to help. We offer independent owners like you a variety of resources to help answer pressing questions for the future of your business. Contact us for a free, no obligation consultation.

Learn More

Call Gayle McMillin at (859) 357-7303

TM

27_VALVOLINE_1120.indd 27 Valvoline_NOLN_FullPg_062420.indd 1

Trademark, Valvoline or its subsidiaries, registered in various countries.

SM

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

10/26/20 12:37 PM 6/24/20 9:07 AM

MODERN 8 AREAS TO EXPLORE TO G E T YO U R S H O P U P TO S P E E D

BY MAT T HUDSON

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OPERATOR SURVEY

GETTY

ongtime quick lube owners know that modernization happens in little pieces.

Software and equipment are updated here and there. The service process itself has evolved quite a bit over time, but change has come slowly—in the non-pandemic setting, that is.

The big changes often happen during a change of ownership, when a fresh set of eyes identifies some of the weak spots that may have been previously overlooked. That was the case for Jeff Perreault, who owns Mike’s In and Out Oil Change in Alexandria, Minn.

Perrault worked for years in the dealership world, but he knew he wanted a change. One day in church, he was approached by the former owner, who asked Perrault to take over the shop. That’s more or less how it came together. Perrault has kept up a successful operation since taking over in 2018.

One staff member that Perrault inherited was a clerical worker who came in to do the books on a weekly basis. She manually logged shop KPIs and service data.

He also had a shop management software program that could have done that same work. Under pressure from the COVID-19 pandemic, Perrault ended up cutting that clerical position. At that point, he realized the full potential of his shop management software system.

Broadly speaking, the software yields better numbers than manual bookkeeping.

“You had to do it manually, and honest to god, I couldn’t tell you what my labor cost was per oil change,” he says. “I had a gut feeling from being in the business for years.”

Now the data come in with greater detail and in real time. The best part was that the software was already in place at the shop. It was just under-utilized. The change was small, but the impact was great.

That’s just one of countless examples of modernization that shops make on a regular basis. Some are major; some smaller. All are intended to boost efficiency and give owners more information to inform their business decisions.

This month, take a broad look at shop modernization from the perspectives of three owners. It’s not just technology that makes a modern quick lube. Labor, equipment, and operations also play their parts. Perhaps the most important upgrade a shop can make is modernizing the way they serve customers. It’s all here in these four fundamental areas.

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SHOP TECHNOLOGY Software Supercharge

When Perrault took over his shop, he found that at the time that the previous owner first purchased the software, eGenuity, it only tracked inventory. When the program expanded to perform more functions, it wasn’t updated and incorporated at the shop.

“When he [former owner] purchased it, that’s all it was used for,” Perrault says. “He wasn’t looking for time management.”

Software and technology is the most obvious point of modernization, and that’s because it’s effective. After Perrault cut the clerical position, he fully implemented the shop management software. With employees clocking in and out on the program, he was able to track labor and make payroll much more quickly.

With POS functions linking to the software, he was able to watch his sales information change after each ticket.

The level of detail is great. The ability to react and adjust in near real time is where the real impact comes. If sales in a certain area become sluggish, Perrault is able to isolate the issue.

“What you’re doing is if it starts declining, you’re doing something wrong,” he says. “OK, it’s a report card. If repair averages are going down, you can go look at add-ons and see right away that the guys aren’t selling air filters.”

The learning curve wasn’t steep, either. The software wasn’t entirely new to the shop, and Perrault says that his younger, computer-adept staff members took to it quickly.

Keeping an eye on the numbers helps to manage costs and pinpoint sales opportunities, and Perrault says it’s been good for business. One metric he’s watching is the number of new customers, which, of course, he can now run in a quick software report.

MIKE’S IN AND OUT OIL CHANGE OWNER:

JEFF PERRAULT

LOCATION:

ALEXANDRIA, MINN.

STAFF SIZE:

13

NUMBER OF BAYS:

3

Full Control By exploring the full functionality of his shop management software, Jeff Perrault saw big improvements to his operation.

TICKET AVERAGE:

$55

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SPANISH FORK OILN-GO / VALVOLINE EXPRESS CARE OWNER:

RYAN FRISBY

LOCATION:

SPANISH FORK, UTAH

STAFF SIZE:

3

NUMBER OF BAYS:

3

TICKET AVERAGE:

$84

In fact, during an interview with NOLN, Perrault ran a report on just that to demonstrate. Over a recent month, 249 of his 2,000 customers were new.

“We’ve been running 10 to 13 percent on a monthly basis of new customers,” he says. “To me, that’s huge if you can hold half of them. That’s why our car count is continually climbing.”

Social Service

What’s the biggest change to customer marketing and communication over the past 20 years? It’s the tool that modernized 21st-century life as we know it: the Internet.

More specifically for the quick lube, it’s the marketing and communication conducted online through websites, search listings and social media. Once viewed as a niche side opportunity, operators are now finding online presence to be an essential part of doing business.

Ryan Frisby, who owns two Oil-N-Go Valvoline Express Care locations in Utah, says that this is one of the biggest customer service changes he’s seen. Frisby has worked in quick lubes since 1998 and took over ownership in 2004, and has been at the helm during the height of this transition.

Nowadays, Frisby knows what most operators have discovered: Customers search your shop online long before pulling up to a bay.

“With technology changing and you have things like Google reviews and things that people have access to, it’s really important

Personal Reviews that you keep your online repWhen Ryan Frisby finds a utation up, because people are Google review of his business, he sends out a personal looking at those types of things,” thank-you to the customer, he says. “And if people are not which includes a coupon. posting positive things about you in the online realm, that can really affect your business.”

Online reviews, in particular, are very common when prospective customers are considering auto maintenance services.

They want to see what others have said about the business.

Frisby responds to all reviews himself, and he does it because he knows that he’s building a reputation. It’s digital word-ofmouth. A strong set of reviews might be the edge he gains over competitors in attracting new customers.

“Getting our online presence out there with people to where they see that and say, ‘Wow they have 250 reviews or more,’” he says.

For operators who are already deep into the social media circles with customers and are actively managing reviews, consider this added service that Frisby does for positive reviewers.

“When we get a Google review, I actually send out a letter in the mail to say, ‘Thank you for the review. We really appreciate it, and it’s something that makes a big difference in our business,’” Frisby says. “Put a little $5 off coupon in there.”

Just like that, a new customer turns into a repeat customer through Frisby’s modernized approach.

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EQUIPMENT KWIK KAR LUBE

Let’s get back to the basics. If you’re AND TUNE running a top shop, you’ve got engine OWNER: oil and filters arriving on delivery ROBERT AND trucks and leaving in customer vehiLYNN REPKA cles at a pretty good clip.

These items are going through a LOCATION: CRANDALL, TEXAS period of modernization of their own.

Hopefully you caught NOLN’s OctoSTAFF SIZE: ber issue, which went in-depth on the 4 industry trends toward more highNUMBER OF BAYS: tech, synthetic engine oils over the 3 conventional varieties. In short, the change is due to customer demands, TICKET AVERAGE: advancing oil technology, and OE rec$78 ommendations for newer engines.

Most operators are already moving to a synthetic blend or a full synthetic as their main bulk oil, but have you reviewed your filter inventory?

Robert Repka, who runs Kwik Kar Lube and Tune of Crandall, Texas, saw the writing on the wall. He’s been in the industry for 21 years and witnessed the transition toward synthetic oils.

“As the other oils started coming in, like the 0W-20s, we were using them in eco boxes or quarts,” Repka says. “As we started using more gallons of that than we were using in conventional, we pumped the conventional until it was almost out. We brought the used oil people in, and they sucked the tanks dry and put the new 0W-20 in that.”

Now, blends and synthetics occupy his bulk tanks, while conventionals are relegated to quart containers.

For Repka, a higher-quality engine oil called for a higher-quality oil filter. And that doesn’t go for just drivers with full synthetic oil—that goes for everyone.

“Pennzoil makes a regular filter and they make a high-performance filter. I’ve gone strictly using high-performance filters, because most cars today require semi-synthetic or full

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synthetic,” he says. “Customers haven’t complained a bit.”

Even on conventional oil changes, he outfits vehicles with a high-performance filter. Repka says that the cost is roughly an additional $4 per service, which is passed onto the customer.

He says that if someone does complain about the service price that includes the quality oil filter, he explains the quality of the product for the operation of the vehicle. That usually does the trick.

“I’ve been using high-performance filters for about two and a half to close to three years,” he says.

Increasing Capabilities

Frisby’s original Oil-N-Go shop was independently branded until about 2011, when he opened up a second location and signed on with Valvoline Express Care. Before and after that transition, he knew that modernization meant adding service value for customers.

Service Education There’s more to adding services than just buying equipment. Ryan Frisby found resources for training with each additional capability.

ANGIE HARWOOD

Filter Out the Old

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LABOR That’s especially true as car counts industry-wide have Worth the Wage In 1938, federal legislators set the minimum wage at a quarter. That waned, leaving shops to find ways to boost tickets. would be about $4.54 today, which is just over $9,400 annually.

“We have fewer vehicles due to additional competition and Wages have grown substantially since then, with state and extended miles and other things that have changed,” Frisby local governments most often surpassing the federal minimums. says. “Modernizing is keeping up with the equipment needed Hourly wages above $10 and closer to $15 are currently in place in to service newer vehicles.” lots of U.S. cities.

Each additional service comes with its own training and How does wage growth in the quick lube industry compare to equipment needs. When Frisby added air conditioning seroverall minimum wage growth? Here’s how data from the NOLN vice, he had his staff trained for refrigerant work from the Operator Survey compares to the federal minimum wage over Mobile Air Conditioning Society. the years.

One area that has been a moving target is in transmission service. It was a welcomed change years ago when updated machines were able to flush fluid through the dipstick opening rather than through the radiator.

Federal minimum wage WAGE GROWTH OVER TIME “Then these newer Quick lube industry machines came out and $13.40 $14 we were able to do it through the dip$12 stick, which was great because you $10 $8.86 weren’t discon$7.36 $8 necting lines,” he says. “It was much $5.36 $7.15 $7.15 $6 more convenient to work on. But now $5.15 $4 you’re getting back $3.80 into cars that don’t $2 have the dipstick.”

More and more vehi1990 2000 2010 2020 cles are coming out with transmissions that don’t have dipsticks. Modernization in transmission flushes means more training More Information: for a longer service process, which means that Frisby once again had to update some equipment.

Average starting wage for lube techs While that might sound like a headache at first, Frisby says in 2020: $11.66 that the upshot is that newer equipment generally has a more Average salary for managers in 2020: efficient design. $49,934.90 “Definitely, equipment is getting better because they make it more tech-friendly,” he says. “And that is one advantage of upgrading equipment.”

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Labor Matters

Marketing Safety Steps Shops might offer different services, but all now offer COVID-19-related safety steps. Let customers know you care by showing off that safety.

then also the additional steps that we’ve added to the service process that we haven’t had before,” Frisby says. “So it takes additional manpower to perform a service review or to perform additional services.”

The COVID-19 pandemic threw a curveball to customer service strategies. Now instead of greeting customers with a smile, techs are learning to smile with their eyes while wearing a protective mask.

Masks are beneficial for public health during a pandemic, but they’re also customer service tools. Frisby thinks of it the same way as windshield cleanings. He tells his staff that cleaning the windshield is the most important part of the service.

The reason is that it has the most impact on customer perception.

“When they clean the windshield of the car, they need to make sure they do a super job,” he says, “because out of all the things we do in a service, that’s the thing they see directly.”

ANGIE HARWOOD

Bringing up the wage for employees is part of modernization, but in an increasingly competitive labor market, that’s no longer the only consideration.

Even at the technician level, bonus systems are becoming more common. Take Perrault, for example. Once he was able to track his sales and labor more accurately, he was able to implement a sliding bonus scale.

“There’s a monthly bonus that I still have in place that pays all the employees, no matter where they are at in the ladder,” he says.

Employees can add to their hourly rate by as much as $2.25 based on sales performance of the entire team. He says it helps staff members push each other a bit more to boost tickets.

There’s another trend at play, and that’s staffing levels. It has changed a lot since Frisby took over his shop in 2004.

“Back then, we ran a three-man crew on Saturdays and a two-man crew pretty much every other day of the week,” he says. “We didn’t do anything other than oil changes and air filters here and there.”

As the number of services increased, more people were needed in the shop. But that doesn’t just mean vehicle services. Frisby says that’s also due to customer services. The courtesy tech became more common in shops to establish a more informational relationship with customers as their vehicles were maintained.

“I think a lot of it is based on the customer experience, but

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OPERATIONS Trends Point to Franchises

A franchised shop doesn’t alone mean that it’s the most modernized. In fact, drawing from the experience shown in March’s “The Indy Shop Survival Guide” (noln.net/indyshop), an attention to trends and the ability to adapt is a hallmark of a successful independent operation.

At the same time, it’s true of the modern quick lube industry that the field is becoming increasingly franchised. The most drastic change came just after the Great Recession of the late ’00s.

INDEPENDENT VS. FRANCHISED QUICK LUBES OVER TIME Independent

1990

69% 31% 2000

67% 33% 2010

61% 39% 2015

30% 70%

Franchised

The Repair Question

There have been lots of shops doing repair work on the side through the years. But upon announcing its Multicare initiative in 2018, Jiffy Lube made a statement as the biggest brand in quick lube.

Today, Jiffy Lube boasts 580 locations that can do axle replacements and 453 that can do driveshaft replacements. Some 612 locations offer windshield chip repair, and 556 offer “engine services.”

The piecemeal approach to repair services reflects the step-bystep approach toward modernization, as well as the search for ticket boosters in a time of depressed car counts.

To be clear: Moving toward mechanical repair services doesn’t work for all shops. NOLN has talked to lots of operators, for whom modernization means a stripped-down, low-overhead strategy focused on oil change volume. That’s a model that can work in various markets.

For others, it’s been a process of incorporating repair services to be more of a one-stop shop for customers’ repair and maintenance needs. That’s what Repka did at his Kwik Kar Lube and Tune. In January, he hired an ASE-certified manager and another mechanic at his shop.

With an investment in those positions and in some tools and equipment, he has been doing front-end repair, brakes, shocks and more.

“It was kind of a challenge for a while,” Repka says about adapting his shop. “About two weeks ago, we kind of rearranged everything.

Moved the air filters. Moved tool boxes along one wall and got a lot more space that way.”

His is a three-bay shop, which is a good size to start in repair work while still having two express bays. With new residential subdivisions going up in his area, he wanted to make the most out of a new crop of potential customers.

The change has worked for Repka. While the repair work launched just before COVID-19 hit, he says it helped him get out of the slump and doubled his revenue from his low during the pandemic.

“Within my area, we’ve got five full-blown mechanic shops, and we’ve still got all the work we can handle,” he says.

Additional information: Owners with fewer locations have been overwhelmingly independent. In 2010, just 19 percent of operations with fewer than 30 stores were franchised.

THIS STORY USES DATA FROM THE 2020 NOLN

OPERATOR SURVEY. SPECIAL THANKS TO VALVOLINE FOR SPONSORING THIS YEAR’S SURVEY.

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WE BUY QUICK LUBES

598 598 LOCATIONS PURCHASED SINCE JANUARY 2014, AND COUNTING! Valvoline is seeking single and/or multiple locations performing 7500+ oil changes per year. ™

Contact Gayle McMillin

859-357-7303

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SALES+MARKETING

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CASE STUDY

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LEADERSHIP

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GETTY

SERVICE

PIT STOP

SALES+MARKETING Getting online shouldn’t be difficult— or expensive. One shop shares tips for success on the web. PAGE 42

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S

PI T STOP

KEEP YOUR COOL

Handling angry customers the right way with the help of EVA PICTURE THIS: TODAY, YOUR SPEEDY, 10-MINUTE OIL CHANGE HAS BEEN MORE LIKE A

15-or-20-minute service due to an influx of customers after COVID-19, and one customer in particular is not happy. With all of the stress of the day eating away at you, there’s only one person to turn to for some advice: EVA. Jan Fox, founder of Fox Talks, has been using the name EVA for years as a tool.

Fox has worked with many companies and its workers for years, utilizing this tactic and many more for dealing with difficult conversations in the workplace.

A S TO L D TO A B B Y PAT T E R S O N

Avoid the “Yeah, but…” phrase. As soon as you say this phrase in response to the customer’s frustration or concerns, it starts World War III. Basically, you’ve negated everything he just said and have not heard at all where he is coming from. Once you start the “Yeah, but…”, it just gets louder and louder between the two of you. You never want to do anything to stop his train of thought, so don’t cut him off.

THE MORE YOU ANTICIPATE, THE MORE LIKELY YOU ARE TO MEET HIM WHERE HE IS AND HAVE AN ANSWER FOR HIM THAT HE CAN USE.” —Jan Fox, founder of Fox Talks

When you need to slow yourself down, make your lips look like Angelina Jolie: big, soft, and closed completely. So, just stop talking and listen. This especially comes in handy when you’ve already responded in an angry way.

If you know he is stressed, anticipate his needs. Ask yourself: What’s bothering him? If you anticipate his needs ahead of time, you can practice a few lines going in that shows empathy and understanding. The more you anticipate, the more likely you are to meet him where he is and have an answer for him that he can use.

If you are in a situation where you can walk with him a little bit, take a walk and listen. When you do that, you are just two friends walking in the same direction and it creates an image that you are willing to listen.

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PI T STOP

Respond with EVA: empathy, validation, and advocacy. We think listening to someone is just nodding our head, but it comes in three layers.

E is first. When someone is visibly upset and comes to you with a problem, let him speak and respond by saying, “I understand” or, “Wow, that’s tough,” instead of something like, “Everyone is going through this.” What we normally tend to do is after saying, “I understand,” is following up with a “but”. Once you’ve said this, you’ve just cut off all possibility of helping in any way, shape, or form. If you keep saying “but”, he won’t feel heard.

V is next. If you let him talk more, you’ll hear more of his concerns. Once he does that, you can say, “I’ve been there too,” admitting your own fear or failures to him so he doesn’t feel alone.

A is last. When you give him validation, he will continue to talk more, and it will give you more clues as to what he wants or a plan of action. Once you figure out exactly what he is looking for, state that you are willing to work with him on the issue, saying, “We can work this out,” or, “Let’s make a plan of action.” When you say “we”, he starts saying, “Yes, we can!

Let’s work on it,” because he knows you’re wanting to work with him on fixing the issue at hand.

Practice tone of voice. Tone of voice is No. 1, right along with eye contact.

Each of us has a tone of voice when we are speaking with different people—friends, kids, a significant other, your staff, etc. You use a different tone of voice with each. The same goes for your mood. When dealing with angry

customers or staff, pretend every one of those customers is your old grandmother, whom you’d most likely talk to in a calm, sensitive voice. By thinking of each person you speak with as your grandmother, you have a better chance of coming out with a kind voice, and will set you on the right track to having a good conversation.

Respond in a calm manner. Avoid gestures like pointing your finger at him, making a brush-off motion, or putting your hands down on your sides. Your body language can easily intimidate him or make him feel like his concerns are not important to you. Instead, keep your hands and body open, and keep everything calm.

Calm face, calm body, calm tone, and calm hands.

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SALES+MARKETING

ON A BUDGET

How social media can help your marketing creativity shine B Y A B B Y PAT T E R S O N

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BEFORE JOINING THE ADIRONDACK

Express Lube team three years ago, Jenna Hutchins says the only marketing the shop did was a couple print ads here and there. And even before that, it was strictly word of mouth. While Hutchins, daughter of owner Rob Hutchins and the shop’s service manager, says this type of marketing can still work for older customers, it can be costly and, most importantly, not as effective.

Instead of coughing up cash for costly advertising options, Hutchins has learned to get a little creative with her marketing options, aiming to be as low-cost, unique, and family-oriented as possible. Her best tool to do so? Social media.

It’s a completely free form of advertising. Hutchins says while the shop did have Facebook before she came on board, it was something the shop could just say was there. Virtual cobwebs were starting to form from the lack of any content at all. Now, she aims to post at least once per week, if not more, full of

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high-quality content that makes the shop stand out.

Here are just some of the little to no-cost marketing strategies and how social media plays a big role in the results.

IT REALLY GETS THE COMMUNITY INVOLVED AND BRINGS IN A LOT OF PEOPLE THAT HAVEN’T HEARD OF US BEFORE.”

GETTY, ADIRONDACK EXPRESS LUBE’S FACEBOOK

—Jenna Hutchinson, service manager, Adirondack Express Lube

In the Know If business is a little slow in the shop, Hutchins says to use this time to use your outside resources. She makes sure to share news articles surrounding topics on car maintenance to show that the shop is a wealth of knowledge to its customers, and gives just a little reminder to customers on important car maintenance to get that they may have forgotten about. It’s a simple tactic that takes little time and keeps the shop top of mind.

Customer Input Hutchins says it’s important to engage with customers as much as possible not only with a couple posts here and there, but getting their direct site. A great way to do that is with Facebook polls. This way, you’re having a direct interaction with customers. It can be anything from voting on the shop’s

best services to getting customer insight on the shop’s decorations.

One poll in particular asked customers if the shop should decorate for Thanksgiving or skip straight to going all-out for Christmas.

Small Business Support During the onset of COVID-19, the need for traffic was at an all-time high. In order to help their business and other local ones in the area, the quick lube took part in a campaign by the Fulton Montgomery Regional Chamber of Commerce in what they call “WooHoo Wednesday,” for which they would write a call-to-action social media post asking their customers to write three reviews for your favorite local businesses in the area.

An Inside Look Social media should give customers a sneak peak into the shop’s happenings. Hutchins says even in the business, she’s still intimated to go into a service center by herself, especially before when she had little to no knowledge on anything automotive whatsoever. This led her to come up with a brilliant idea: To give customers a real behind-the-scenes look, she wanted to create videos of technicians performing typical services in the shop so the customer knows exactly what goes on while their car is being serviced. For example, the shop has posted a 15-second video on how a technician mounts a new tire and

even a step-by-step video showing how the shop performs a fuel injection service.

The Oprah Way As Oprah would say, “You get a prize!

You get a prize! Everyone gets a prize!” Another big focus for the shop depends on low-cost giveaways, which really grabs the attention of new customers in the area.

How? Over the airwaves. Hutchins partnered up with the local radio stations, 105.1 WENT FM and 1340 AM, to give away things like discounts on oil changes, prizes, and gift certificates to other local businesses in the area. Hutchins simply posts on Facebook each time before a giveaway to let customers know to stop in at one of their locations to register.

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ENHANCE PERFORMANCE, PROTECTION, AND PROFITS. Give customers more oil change options while taking up less shop space with the new Shield® High Mileage Booster. It’s the industry’s first oil supplement that, when used as directed with Phillips 66® Shield motor oils, results in a blend that meets current API and ILSAC performance standards.Learn more at ShieldBooster.com.

SALES+MARKETING

Holiday Cheer Hutchins’ favorite marketing tactic involves spreading the holiday cheer.

She really enjoys holidays and makes a huge effort to put the focus on that. And, best yet, this costs the shop little to no money whatsoever.

“For each holiday, I never spend more than $25,” she says. “The dollar store is like my best friend.”

This year for Valentine’s Day, Hutchins spent hours on end writing little curated notes on hundreds of precut foam hearts with a piece of candy attached. She ended up posting a picture of some of the notes on Facebook, saying a customer will receive a special Valentine from the shop when they buy an oil change.

When Halloween rolls around, Hutchins goes all out and makes the shop into a spooky paradise. She gives customers an inside look on the shop prepping their lobby for Halloween, posting a video tour of the lobby on the shop’s Facebook page. She also makes sure to take part in the trick-or-treat festivities and hand out candy.

For Hutchins, Christmas is the most wonderful time of the year in the shop. While decorations are of course a part of the holiday festivities, the shop staff and customers gear up each year for the shop’s ugly Christmas sweater contest. Hutchins says it’s always a huge hit with customers, saying they come into the shop saying how much they enjoy it. On top of this, the shop’s Facebook page always gets a lot of likes from customers and outside of the shop’s customer base just from the amount of shares they get on this single post. Best of all, this holiday favorite is absolutely zero cost to the shop’s marketing budget.

“It really gets the community involved and brings in a lot of people that haven’t heard of us before,” she says.

® © Phillips 4 4 N 66 O LCompany.

N . N E T Phillips 66 and its logos and products are registered trademarks of Phillips 66 Company.

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Beat the Transition Begin new ownership on the right foot

GETTY

B Y A B B Y PAT T E R S O N

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After a buyout at his telecommunications company he’d worked at for years, Sam Basey was looking for a change.

And after stopping by his local quick lube—where he’d been a customer at for 10 years—he found his answer. The owner was looking to get out of the business, and because Basey felt he was too young to retire and the timing was perfect, he jumped on the opportunity.

He officially took over on New Year’s Day of 2019.

“I have a lot of crazy ideas every day,” Basey says. “This was just one of the many.”

But with little to no experience in the quick lube industry—or the automotive industry for that matter—and the little to no processes in place for him as he took over, he knew he had his work cut out for him.

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C A S E S T U DY

I have a lot of crazy ideas every day.

This was just one of the many.”

—Sam Basey, owner, South Coast Xpress Lube

The Solutions Studying Up Thankfully, Basey has former corporate and managing experience from his telecommunications company. He managed a staff of 50 for almost 10 years, which really came in handy for running his business. But when it came to the nitty gritty, day-to-day aspects of ownership, he needed to do some research of his own.

First thing Basey wanted to do was work on the quick lube’s processes, but he needed help on how to do so. Before officially taking over, Basey worked in the shop for three weeks to become familiar with the shop’s processes. But ultimately, it was up to him to do his own homework on the matter.

Basey invested his time in reading industry content on growing the business. Right when he committed to buying the business in late 2018, the former owner even gave him a copy of NOLN early on to look over, which led him to subscribe to other business publications as well.

Utilizing Industry Help As he was reading up, the vendors helped him more than he ever would have thought.

Basey started renegotiating current vendor

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Ready, Set, Grow Sam and Kelley Basey took over a quick lube shop that they’d visited for years.

Instead of maintaining the status quo, they sought to grow the business.

SOUTH COAST XPRESS LUBE OWNERS:

SAM AND KELLEY BASEY

LOCATION:

BANDON, ORE.

STAFF SIZE:

9 (3 OIL CHANGE TECHS, 2 MECHANICS, 1 TIRE TECH, 1 SERVICE WRITER) SHOP SIZE:

1,500 SQUARE FEET NUMBER OF BAYS:

4 BAYS (2 QL, 2 MECHANIC AND TIRE) AVERAGE DAILY CAR COUNT:

22

TICKET AVERAGE:

$96

agreements and seeking out different ones, and through that, he was able to create a relationship with industry experts.

During the transition to owner, Basey added on an additional profit center and became a Tire Pros franchisee. Through this partnership, he made contacts with similar businesses on the tire side of things. And as a Castrol oil shop, Basey says the industry contacts there have always answered his calls on whatever questions he had.

The Aftermath Since studying up on the industry, adjusting processes, and adding additional profit centers, based on what numbers they had before, there was a 30 percent increase in business within the first couple of months. Basey says the biggest gross opportunity for them has been adding tires as an additional profit center.

The Takeaway Not only do you have to have enough capital to take over a business, but Basey says you have to have a lot of tenacity and perseverance to see it through—just keep pushing on and stick with it.

A lot of Basey’s help came from his own demise and networking partnerships he created. While a business owner should help you become familiar with the business processes, it’s up to you to learn what you need to learn and reach out to who you need to reach out.

COURTESY BANDON WESTERN WORLD

The Challenge Initially, it was hard for Basey to gauge exactly what he was getting himself into. He says the former owner had few processes when it came to tracking KPIs. The numbers he did have were the shop’s total gross revenue and the cost of goods sold, but it wasn’t broken down further.

“It was really hard to get nailed down what the numbers were,” Basey says. “It’s been somewhat of a learning curve for us, to say the least.”

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LEADERSHIP

for five years and has always exceeded expectations. All of a sudden, his performance has dropped significantly and it’s been lower than usual for about a month. Everyone has good days and bad days, but when does it get to the point where it’s affecting job performance too much?

SHOULD THEY STAY OR SHOULD THEY GO?

How to decide to keep employees or give them the boot B Y A B B Y PAT T E R S O N N

GETTY

SOMETIMES, FIRING AN EMPLOYEE IS A

no-brainer. Whether it’s a physical fight between employees or an employee stealing from your shop, these types of situations are just unacceptable, according to Karen Young, president and founder of HR Resolutions.

“There are things that you just don’t do ‘three strikes and you’re out’ for,” Young says.

A company’s handbook should state what is considered an immediate termination, but most of the time, situations aren’t so clearly cut. There are just some situations that don’t go by the book, leaving the decision strictly up to an employer’s discretion. What are they?

For a little bit of context, Young

provides two scenarios describing how operators should address each situation individually in order to determine the right decision.

The Situations: Making a Big Mistake Meet Taylor. Taylor has been at the company for 15 years and has had a great reputation. But recently, he made a big mistake that cost the company $5,000—a lot of money in the company’s eyes. People make mistakes. But when does a mistake go too far?

Change in Performance Meet Alex. Alex has been at the company

Ask Yourself...

Has this happened before?

While Young says the one-and-done firing should depend on the situation, you have to look at what you’ve done in the past. Has Taylor made a big mistake like this before? Is Alex’s performance normal, or has he performed this way in the past? If this is a one-time occurrence, Young says employers should allow for some leeway, depending on the severity of the mistake or performance mishap.

For smaller, more general issues, Young uses the strike system—three strikes and you’re out, if the same issue keeps happening.

The first time an issue comes up, assume that as an employer, you didn’t provide the correct information or enough background. As the employer, sit down with him and let him know of the issue and how to correct it. That’s strike No. 1.

The second time around that it happens, the employers should be asking the employee to help him understand how else they can support him. And during the second meeting, come up with an agreement on how both of you will work together to address the issue in the future and write down what you both agreed on. That’s strike No. 2.

When you’ve talked about it, provided your support, and come up with a plan to address it, now an employer can assume it’s an issue with the employee.

Now, it’s up to the discretion of the employer on how to move forward, and

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this is when a serious conversation starts.

Young says only one of three things will come out of this conversation: 1. The employee will improve and the conversation will never happen again.

2. He isn’t going to improve, he isn’t willing to improve, and he will resign.

3. He will not change, but you have laid the foundation for him and have the documentation in place, which enables you to safely say that you have given the employee no other choice but to terminate their employment.

“Employees don’t show up to work intentionally to make mistakes,” Young says. “It is our responsibility to hold our employees accountable and responsible.”

What’s his attitude toward the situation?

How an employee reacts to a problem is a telltale sign if he is worth keeping or not.

1...

When Taylor made his mistake, did he feel remorseful for it? Did he take responsibility for it, or did he blame others for his mistake?

How did Alex react when you approached him about the issue? Was he apologetic for his performance and willing to work on it, or did he act like his performance hasn’t changed at all?

“You want to tie attitudes back to performance and behaviors,” Young says.

Are there any extenuating circumstances?

If this has never happened in the employee’s work history before, it’s time to get down to the nitty gritty of what caused the shift, and sometimes, it has to do with unforeseen circumstances.

Life happens, and all it takes is a simple conversation to get down to the root of the problem to fix it.

“As a human, we should absolutely

2...

take circumstances into consideration,” Young says.

While Taylor did lose the company $5,000, you find out his child is seriously ill and he is worried about paying the bills. Alex’s mood and performance lately hasn’t been the best, but it all stems from the fact that his dog just died and he’s having a hard time coping.

While circumstances like this do come up, it’s important to keep him to a standard and be an open book. Alex’s performance has been sub-par for over a month ever since his dog died.

With this, it may be beneficial to ask the employee the steps he could have taken to address the situation sooner.

Should he have had a conversation with you a month ago? Is there a reason why he didn’t tell you closer to when it happened? Maybe if Alex told you right away, you could have given him a day or

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two off to cope instead of going through a month of poor performance.

However, it’s no secret that some employees use extenuating circumstances as an excuse.

“The first time, the child is sick, then the spouse is sick, then the grandmother has died for a fourth time now,” Young says. “It’s only when extenuating circumstances become the rule and not the exception that you have to cut them off.”

Is the problem business-related?

When deciding to fire an employee, these questions should always enter your mind: • What’s the perception of this?

• Is there a history there?

• Is this strictly business-related?

• How serious is the issue?

• Are there any protected classes (age, race, religion, sex, etc.) that I need to be aware of?

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When it comes to the protected classes, this is where the perception really comes into play.

Say you have two employees. One is a white male, while the other is a black female. This is where a lawsuit could come into play if outside circumstances or biases are involved in firing. If you did not let another employee go over a similar situation, it could be perceived as the company letting one employee go because of his race and/or sex.

Young says this situation can also go the other way, too. She sees a lot of employers not terminating an employee because it may be perceived badly, even though it would have been the right thing to do business-wise, mostly in fear that a lawsuit may come out of it.

“You will have a chance of being sued, welcome to the United States,” Young says.

In other words, lawsuits happen, and it’s up to you to have the right documentation to plead your case. Make sure you have a record of a pattern of bevahior that leads to a reasonable firing. Otherwise, other employees will take notice of the situation and will ask themselves why they even bother trying to be an employee when the standard isn’t equal for each employee.

As an employer, if any protected classes are present in the situation, it should not solely let it change your overall decision. If an employee was let go in the past for poor performance, any current employee should be held to the same standard.

Young says that the employer should document that his perception has not changed due to these protected classes and it was strictly for business-related reasons.

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AO CA C O R N E R

c

Bringing Training Excellence to AOCA Members

The background work of the AOCA on behalf of the industry is impressive WHEN I STARTED WITH THE AOCA NEARLY FOUR

TOM

STAKER Tom Staker is the International Director of Training and New Services at FullSpeed Automotive, where he’s been since 2017. Previously, he was a Big O Tire franchisee with 14 stores.

He joined Big O corporate as senior VP of operations.

After that, he ran contract training for Goodyear in the western states. Staker also consulted with American Tire Distributor Tire Pros and later became president of the company.

years ago, I wanted to help launch brand new training modules. I saw how the organization worked in various committees and through leadership, and I learned about how much goes on in the background. I was especially impressed by the depth of knowledge and experience the AOCA leadership group brings.

Executives from many of the top quick lube organizations nationwide provided real time insight into our industry’s issues and opportunities.

Quick lube operators, many of whom are AOCA members, might not know about all the work that goes on behind the scenes. But this year, every operator out there was able to benefit from that work.

The efforts of the AOCA in the early weeks of the COVID-19 business closures was extraordinary. With the tremendous input from members, the guidance of committees and the swift and effective action of AOCA staff, the industry maintained its essential status, and shops stayed open.

In the ensuing months, the AOCA was right on top of Paycheck Protection Program and other assistance, state-level updates, and so much more information that kept everybody in the loop. It all moved so quickly, but the AOCA kept up. With my circles at FullSpeed Automotive, we followed those AOCA updates closely.

INFO

COURTESY TOM STAKER

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

Training Continues Now, things aren’t back to normal, but they have stabilized. That means that lots of operators can put their focus back on training, professional improvement and reaching for higher profits in their shops.

I’ve always been passionate about training and improving strategies. At FullSpeed, we’ve learned that techs will take advantage of virtual learning experiences when they’re offered—especially the younger team members. The next generation of workers are digital-focused, savvy and sometimes respond better to a computer format than in-person, inspector-led training environments.

Last year, our company ended with more than 54,000 completed training courses in a digital offering that’s being improved upon in 2020. And participation is growing.

Work on the training modules for AOCA is moving ahead. In partnering with a major content vendor, we’ve gained approval for the modules to move on to the next step.

That’s just one way that the work done by AOCA members, staff and committees in the background is moving into the spotlight. When you’re paying your membership dues, you’ll know that the team is going above and beyond, behind the scenes, to make sure the industry is set up to thrive in these times.

Got Your Back Take it from me. Before I became involved with the AOCA, I didn’t know how extensive the regulatory oversight had been at the committee and staff levels of the organization. After joining, I learned about how much the AOCA does to keep shops in business.

In growing our training opportunities with AOCA’s modules, we’re working first to become a more positive and visible presence in the industry. Second, it’s my belief that the training modules will be more than worth the membership dues for operators to develop their systems It can be tough to recall a time before such a massive disruption like COVID-19, but the industry was already facing big changes. Shops are seeing new engine designs, like direct injection, that present maintenance challenges. There’s also been an explosion of hybrid powertrains, and now electric models are poised to become the next big thing.

Whether its regulatory hurdles, technical maintenance information, team training, legislation, and more, shops need an organization that works on the broad issues that affect everyone. And believe me— that work in the background continues.

You’re busy maintaining vehicles. Who’s looking out for you? That’s the AOCA.

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LEADING EDGE

Firefighters and Fire Preventers Heed these steps and build a rapid response to operations issues

LENNY

SAUCIER

Lenny is the Vice President of Human Resources and training development for Victory Lane Quick Oil Change.

He has 20 years of experience in automotive and technician experience in the United States, Canada and Saudi Arabia.

LSAUCIER

@VICTORYLANE.NET

automotive aftermarket, I was a firefighter for the great and very small fire protection District 2 of Madisonville, La. This small waterfront town had three fire stations, two of which had paid firefighters each day.

The calls consisted of mostly medical for elderly and some brush fires. Our days were spent rewashing the trucks, learning, and polishing up on skills and waiting for that call for your help.

Perhaps one of the biggest tasks we were given was not to be firefighters—but fire preventers. We went out through the town testing water hydrants and looking for issues to catch before we were sent out at 2 a.m. (because that is the most popular time to do it, apparently).

In our line of work, as leaders, we must realize that we are firefighters that must go and handle issues, but our time is much better spent preventing the fires in the first place.

I know, I know. It’s easier said than done. How can I prevent fires when I am so caught up in putting them out? This is not an easy or quick path, but it is indeed a path. Just like you learned in school: You must stop, drop and roll.

Stop The first thing you need to do is simply stop the mentality that you cannot get ahead because you are too busy fixing things.

I am a huge believer that we attract what we think about, and when we fill our hearts and minds with hopelessness, we receive only that. As corny as it may sound, changing your mindset on how you will attack your goals and your days will literally change your reaction to how you attack your goals. You go from, “Here we go again,” to, “OK, let’s knock this out so we can get back on track.”

Drop Your day is probably filled with tons of items that are executable in others’ hands. The pure stress of the amount on your plate can send you spiraling down into firefighter mode once again. You see all the stress

58

and tasks building up that you drop right back into the fix-it mentality.

Instead, you should use your delegation skills to assign items that are in your control but not necessarily in your needed vision. Count on your team and hold them accountable for their successes and failures.

Roll As mentioned earlier, vision is extremely important. You must have an idea, dream, goal of what your success is going to look like. Once you have and truly believe in your success you can start drawing the path to get there. You must roll out your plan based on your path to everyone involved. The failure in most path plans is they always start out at the first step and then move forward. In reality you should look at your big red x on the map and work backward.

Let us say you want to have a shop that does 60 cars a day with a $90 ticket average (if finance is your goal).

When you see that shop in your head rolling those cars and keeping that ticket average, what does that look like? Really visualize it. Visualize the crew and the customer. Then ask, “How did it get there?”

We answered that by examining the shop, the crew, and the customer. You can start to digest that. Start with the crew. How did I get the crew to push a high ticket average with so many cars during the day? They were properly trained and brought into your cause of course. How did I properly train them? I held daily meetings, short break product knowledge, AOCA Tech Academy, vendor learning management systems.

If you break every one of these items out, you will begin to see your path of short obtainable goals. These goals do not go away when you have fires to put out; these goals stay up there and are checked off on your path. If you need to focus your attention on the fire for a while, do it. After this is done, go back to your fire protection plan and keep pushing forward.

This is absolutely as easy as it seems. If you do not believe it will work, re-read the column under “Stop.”

I will leave you with a quote from the only hockey player I even know about (I am from the south): “You miss 100 percent of the shots you don’t take.”

COURTESY LENNY SUACIER

IN ONE OF MY MANY JOBS BEFORE GETTING INTO THE

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