Ratchet + Wrench - June 2020 by EndeavorBusinessMedia-VehicleRepairGroup

06.20

STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS

Easy tips for video marketing PAGE 40

Impact your community PAGE 21

ESSENTIAL MINDSET How to reroute your vision when success is the only option PAG E 3 2

Wellness: a company-wide priority PAGE 46

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repair information | shop management | shop marketing

06.20 VO L . 0 8 N O. 0 6

J U N E Giving Back Shop owner Matt Curry supports local restaurants and medical workers with the “Feed A Hero” campaign.

F E AT U R E

32 COURTESY CRAFTSMAN AUTO CARE

STEPPING UP

In this time of uncertainty, strong leaders are needed now more than ever. The industry sounds off on how they’re navigating through COVID-19 and into the future. BY TESS COLLINS

PRINTED IN THE U.S.A. COPYRIGHT ©2020 BY 10 MISSIONS MEDIA LLC. All rights reserved. Ratchet+Wrench (ISSN 2167-0056) is published monthly by 10 Missions Media, LLC, 571 Snelling Avenue North, St. Paul, MN 55104. Ratchet+Wrench 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: Ratchet+Wrench, 571 Snelling Avenue North, St. Paul, MN 55104.

ON THE COVER: COVER DESIGN BY RATCHET+WRENCH STAFF

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TA B L E O F C O N T E N T S

J U M P

S TA R T

T O O L B OX

11 ONLINE

18 BREAKDOWN

40 SALES+MARKETING

13 NUMBERS

21 VIEWPOINT

45 INDUSTRY INSIDER

COVID-19 business solutions

An examination of government funding

Raise ELR

The dos and don’ts of video marketing

A creative approach to marketing

14 EDITOR'S LETTER

Hold yourself accountable

RISSY SUTHERL AND

23 SPEED READ

Tell your story

46 HUMAN RESOURCES

Reducing the virus’ spread

Improve your staff’s health—and retention

26 SHOP VIEW

Frank’s Automotive in Tulare, Calif.

49 THE BOTTOM LINE The qualities strong leaders possess

29 STRAIGHT TALK

Making the tough calls

MITCH SCHNEIDER

JOE MARCONI

50 THE FIXER

Lessons learned during the pandemic A ARON STOKES

KEEPING

AMERICA MOVING THANK YOU TO SKILLED TECHNICIANS

for keeping emergency responders, medical supplies, food and equipment rolling.

When Techs Rock, America Rolls.®

#TechsRock

TECHFORCE.ORG

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2020

The Ratchet+Wrench Management Conference is a three-day, annual event to provide mechanical repair shop owners and operators with the knowledge, networking, motivation and tangible strategies to push their businesses forward.

September 17–19, 2020

Hyatt Regency Minneapolis

WHY SHOULD YOU ATTEND THE RATCHET+WRENCH MANAGEMENT CONFERENCE? “I visit with many owners and they’ll ask, ‘What should I do?’ And I tell them this is the conference they need to attend. Not only do you get training and advice, but you also get to sit with other owners, learn from them, befriend them and have them to share your wins and losses with. You only get that when you come here; this conference pays time and time again.”

RISSY SUTHERLAND

Conference Speaker, 2016 - 2018 President of SRS & Co.

SEE WHAT’S NEW AT RWCONFERENCE.COM THE AGENDA • SPEAKERS • AND MORE!

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Visit futuretechsuccess.org and find out how your hands-on talent is the key to an amazing technical career.

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EDITORIAL VICE PRESIDENT, CONTENT AND EVENTS Bryce Evans EDITORIAL DIRECTOR Anna Zeck ASSOCIATE EDITOR Tess Collins STAFF WRITER Abby Patterson SPECIAL PROJECTS EDITOR Jordan Wiklund SPECIAL PROJECTS EDITOR Nora Johnson CONTRIBUTING WRITERS Hanna Bubser, Joe Marconi, Mitch Schneider, Aaron Stokes, Rissy Sutherland, Courtney Welu PRODUCTION ART DIRECTOR Zach Pate GRAPHIC DESIGNER Lily Risken GRAPHIC DESIGNER Nicole Olson GRAPHIC DESIGNER Morgan Glisczinski PRODUCTION ARTIST Lauren Coleman SALES VICE PRESIDENT AND PUBLISHER Chris Messer 651.846.9462 / cmesser@10missions.com ASSOCIATE PUBLISHER Andrew Johnson 651.846.9459 / ajohnson@10missions.com MARKETING STRATEGIST Matt Walz 651.846.9463 / mwalz@10missions.com CUSTOMER SUCCESS REPRESENTATIVE Shayna Smith 651.846.9460 / ssmith@10missions.com CLIENT SERVICE SPECIALIST Jen George 651.846.9465 / jgeorge@10missions.com 10 MISSIONS MEDIA PRESIDENT Jay DeWitt GENERAL MANAGER AND PRODUCTION MANAGER Mariah Straub BOOKKEEPER AND CLIENT SERVICE SPECIALIST Meghann Moore EVENT COORDINATOR Katie Cornet SENIOR DIGITAL MEDIA STRATEGIST Tiffany Fowler MARKETING SERVICES MANAGER Miranda Jama MARKETING COMMUNICATIONS SPECIALIST Kasey Lanenberg ADMINISTRATIVE ASSISTANT Corey Steinhoff EDITORIAL ADVISORY BOARD Jimmy Alauria, 3A Automotive & Diesel Repair Leigh Anne Best, Mighty Auto Pro Ryan Clo, Dubwerx Dwayne Myers, Dynamic Automotive Ricky Jordan, Fifth Gear Automotive Bryan Gossel, BG Automotive HOW TO REACH US 10 MISSIONS MEDIA 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 Ratchet+Wrench. BACK ISSUES Past issue single copies are $8. Go to ratchetandwrench.com/backissues LETTERS TO THE EDITOR editor@ratchetandwrench.com ARTICLE REPRINTS For high-quality reprints or e-prints of articles in this issue, call 651.846.9488 or email reprints@ratchetandwrench.com. Opinions expressed in Ratchet+Wrench are not necessarily those of 10 Missions Media, and 10 Missions Media does not accept responsibility for advertising content.

New Ratchet+Wrench Podcasts.

RADIO

4 SERIES WITH NEW EPISODES EVERY MONTH.

HOW I DID IT. Series featuring a rotating guest each month. Hear about the challenges, opportunities and success stories from shop owners who found a way to thrive. New episode this month.

GROW. Series hosted by marketing expert Frank Leutz. Inside the processes, systems and operational strategies that have allowed the industry’s top shops to thrive. New episode this month.

LEAD. Series hosted by shop operator Aaron Stokes. The go-to resource for leadership lessons, philosophies and success stories. New episode this month.

S P O N SO R ED BY:

Print & Direct Mail Made Easy

INNOVATE. Series featuring a rotating guest each month. An introspective look at the industry’s most pressing topics from the people who know them best. New episode this month.

LISTEN AND SUBSCRIBE S E A R C H “ R AT C H E T + W R E N C H ” I N A P P S FOR APPLE AND ANDROID

AUTOMOTIVE GROUP

PODCASTS

STITCHER

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ONLINE 06.20 COM M EN T S , DISCUSSIONS , FEED BAC K A N D MORE FROM A ROUN D T H E W EB

BRING INSPECTION RESULTS TO LIFE

SPONSORED CONTENT

Fill Your Bays With A Single Text The advantages of text marketing, and how Kukui Text Connect can help your business grow.

As more and more communication has moved online, marketing has followed suit. But web and email campaigns aren’t always the fastest and most reliable way to get in contact with customers. According to Heather Myers, chief product officer at Kukui, email open rates are at only around 25 percent over a span of 24 hours, whereas most text messages are read within three minutes, and have an open rate as high as 98 percent. “Texting is a great way to reach everyone,” she explains, “because almost everyone has a cell phone.” As a way to help shop owners connect quickly with their customers, Kukui has released their Text Connect platform. EXPAND COMMUNICATION Kukui has provided text capabilities years before Text Connect, including the ability to communicate service updates, as well as a way to request customers to leave reviews. “Reviews are just as important as marketing,” says Myers, “they build trust.” Kukui’s new platform now allows for shop owners to send specific messages to groups of select customers. Text Connect offers a way for owners to send coupons, deals, alerts, and other announcements to numerous individuals at once. These “text blasts” are able to reach multiple people in curated audiences, and prove to be a convenient way for customers to receive information. CRAFT DELIBERATE MESSAGES Text marketing is similar to any other form of marketing, and the messages should follow a similar formatting. But one thing to keep in mind when crafting a marketing text is the length. Texting relies on a condensed message format and, in order to be most effective, should be short and sweet. Short messages allow businesses to get straight to the point as quickly as possible—and the “point” of the text, should be the call to action (CTA). The CTA should be clear and concise, and work to reach the ultimate goal of the campaign. This goal could either be getting customers into the shop for an oil change in the next few days, or to direct them to your website to make a maintenance appointment. Text messages instill a sense of urgency in each customer, and generally elicit an immediate response. Meaning, if the message is short and has a clear CTA, results should come quickly.

FILL YOUR BAYS Text marketing can act as a bay-filler, says Myers. But the ability to send multiple customers a text message at once, can be easily abused if one single message is sent to every customer in your database at the same time. If the text includes a specific timely call to action, an overflow of customers could come in, creating an issue. Myers gives the example of sending out a text about discounted oil changes to fill appointment slots in the next few days. If this message is sent to your entire customer-base, there could be far too many customers at your shop in a short span of time, with only oil changes being performed. Instead, specific audiences should be identified for each marketing text. To fill your shop’s bays on slow days, a message should be sent out to customers who haven't been into the shop for a while, and are probably due for maintenance. Then, a week or two later, the same text can be sent out to another set of customers. FOLLOW LEGAL GUIDELINES One important factor to keep in mind before marketing to customers through text, is the Telephone Consumer Protection Act (TCPA). The TCPA requires businesses to include an explicit opt-in before any text message marketing can take place, explains Myers. This opt-in can be a pop-up on your website, a dedicated web page, or a checkbox on appointment forms. But in order to legally send text marketing messages to customers, they need to first give you permission.

For more information on the Kukui Text Connect platform, visit TextConnect.pro or scan the QR code

J U M P S TA R T NEWS

SHOP VIE W

IDEAS

PEOPLE

TRENDS

BREAKDOWN VIEWPOINT SPEED READ

FRANK'S AUTOMOTIVE

SHOP VIEW

A Friendly Tone Service advisors greet customers immediately upon entering from the check-in desk at Frankâ€™s Automotive and create a friendly first impression.

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J U M P S TA R T

Breaking Down COVID-19 Financial Aid Where the money is goingâ€”and how to get a piece of it BY A B BY PAT T E R S O N

The coronavirus came into the U.S.

with a vengeance, breaking down the economy and mimicking the impact of the Great Depression. While there are specific funds in place to help suffering small businesses through the pandemic, many U.S. companies received emergency government loans despite having months of cash on reserve. According to a report from Reuters, 41 publicly traded companies that received emergency aid already had enough to cover basic expenses for two months or more when they applied for the funds, 18 / R + W / 0 6 . 2 0

while 30 had over three months worth of expenses stocked up. To ensure businesses actually get the aid they need, Ratchet+Wrench breaks down where the funds are going and how to ensure you get what you need. Where Is The Money Going? During the pandemic, two stimulus packages were released before funding for small business owners became widely available. The third stimulus package, worth a recordbreaking $2 trillion, followed by a fourth worth $484 billion, allocated funds for

small businesses. The third stimulus package, for example, helped cover most of the aid in the Paycheck Protection Program (PPP). To qualify for the program, small businesses needed 500 or fewer employees. And according to a report by The Observer, the PPP had a $10 million limit to each loan applicant. However, some borrowers were able to well exceed that cap by filing multiple applications across subsidiaries, as long as each operates as a separate legal entity and employs fewer than 500 people. With all of that money up for grabs, many small businesses have not received

the Economic Injury Disaster Loan, with less than 4 percent not filing for any assistance at all, showing the majority of the industry need help in one way or another. But, are they getting the help they need? As of April 22, less than half (40 percent) that applied had been approved for the PPP. Twenty percent of those that approved received their funding roughly a week after the stimulus program became available. Overall, Fisher says the data shows a positive trend for the industry and how operators are taking advantage of the funds. How Can You Get Your Money? The assistance is in high demand and going quickly. Here are tips for how small business owners can ensure they get the funding they need.

any aid. Why? Part of the issue could be public companies, who have applied for a combined $870 million from the PPP, according to The Observer. When small businesses that desperately needed the money found out, there was an outcry to return the money and a few companies did—Ruth’s Hospitality and Shake Shack, for example—but others have not, leaving many mom-and-pop shops without needed funds. Is the Auto Industry Getting a Cut? In an Automotive Service Association (ASA) webinar highlighting the stimulus programs, Ray Fisher, executive director at the ASA, shared how many industry members took advantage of these programs. According to the data, roughly 90 percent of the industry applied for the PPP and roughly 55 percent applied for

GET PAPERWORK IN ORDER. When it comes to getting the necessary paperwork to apply for loans, businesses should have a copy of their driver’s license or an official ID and have the business’s most recent IRS form showcasing the business’s payroll, like Form 941, 1099, or a 1040, for example. Business owners should also establish basic company and contact information, like a preferred phone number, email address, and preferred person to be contacted regarding financial matters.

ROUGHLY

90% OF THE INDUSTRY APPLIED FOR PPP*

GO WITH A SMALL BANK. Some business owners who bank with larger banks discovered upon applying for the PPP that they were either ineligible for the program or that they simply couldn’t get through fast enough to be in line for relief. If business owners want to decrease their chances of getting rejected, consider a smaller, local bank. Local banks may get back to you faster or have more relaxed eligibility requirements for customers. UTILIZE THE SBA WEBSITE. In addition to health and safety measures, the Small Business Administration (SBA) website is providing guidelines for companies seeking loan and funding assistance. Business owners can expect the site to be updated regularly as things evolve. 0 6 . 2 0 / R + W / 19

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J U M P S TA R T

Giving Back Helping out the community is priceless marketing during a crisis BY A B BY PAT T E R S O N

When COVID-19 hit the U.S., no one was prepared, especially for a financial shutdown. Businesses were furloughing or laying off most of its staff members, and even if a business was able to keep the doors open, the traffic was barely coming in to keep them afloat. To bring in business and lend a helping hand in the community, many shops were finding ways to get their name out there and make a difference, like giving away free oil changes to health care professionals. Others have partnered with local businesses on these efforts, too. Kurth’s Auto Repair in New Hope, Minn., for example, partnered with the local Chick-fil-A to deliver meals to those in need. And while owners Calvin Smith and Pete Taverneir knew it would help bring in some business later on, their mindset is on helping out the community. Ratchet+Wrench sat down with Smith to talk about how they partnered with the chicken sandwich mogul and how it made a difference for their business and community.

How did the campaign start? It all started when Chick-fil-A in Maple Grove, Minn., reached out to us at the beginning of April and asked if we were interested in partnering with them on finding a way to help out the community. From there, it took about a week to talk with Chick-fil-A on what they could do to support the community through this time and, overall, what the partnership would like. Then on April 11, we went live on social media with it and delivered our first set of meals on April 14. What’s involved in the campaign? When we went into discussing the campaign with Chick-fil-A, we decided we would deliver meals to those in need in the community; healthcare workers, laid-off employees, anyone that needed some help feeding themselves and their families, we’ll deliver a meal to them. Chick-fil-A and ourselves decided that the fast food chain would donate up to 100 meals per week and would deliver them to families in need; Chick-fil-A paid for the meals and it was our job to deliver them. Every Tuesday night between 4 and 6 p.m., our staff volunteers to deliver meals to anyone within a 5.5 mile radius of the shop. All

Calvin Smith Owner Kurth’s Auto Repair

a person has to do is fill out a registration form on the shop’s website by Monday at noon to get their meals for the week. How do you get the word out? We’ve done it a few different ways. We put up flyers down the street from us at the Holiday gas station, but it mainly comes from social media and word-of-mouth. I post one to three times per week on our Facebook pages about it with a link to register for meals, and Chick-fil-A is doing the same. Every time we deliver a meal, we put a flyer inside the box. On the front of the

flyer, it states why we are doing what we are doing, and on the backside is a 50 percent off coupon for an oil change. We have been offering free oil changes for anyone in need, but most customers demand that they pay for the service. They see it as paying it forward like we are paying it forward. Was the campaign successful? The first week of the campaign, we delivered over 80 meals. In our second week, we delivered 96 meals and already have 84 people registered for the next week’s meal a day after the cutoff. Right now, people are hurting, the community is hurting. Some of us are in the position where we are able to help. And in doing so, it gets our name out there. When someone’s car breaks down, they think, who should we call? And who are they going to go to? The shop that is marketing to them through traditional ads, or the shop that gave them a free meal when they were in a time of need? Where should shops look if they’re interested in giving back? You have to be creative in how you help your community. Each shop or business has to find something that would work for them. It could be donating either services or cash donations to nonprofits, such as your local Lions Club, Rotary Club, or churches for silent auctions. It could be providing free oil changes to healthcare workers or military discounts. Why is it important for the industry to give back in ways like your shop is doing? The Golden Rule is something we used to be taught as children and it has gone overlooked. Ask yourself this question if you would want someone to help you in a time of need. The answer to this is yes. With that in mind, why wouldn't you help someone else in their time of need if you are able to? 0 6 . 2 0 / R + W / 21

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J U M P S TA R T

REPORT: NEW EIDL RESTRICTIONS PUT IN PLACE In the beginning of May, a report by The Washington Post said the Small Business Administration (SBA) is limiting Economic Injury Disaster Loan (EIDL) disbursements to $150,000 per applicant, due to overwhelming demand. Also of note, as of May 4, the SBA is only taking EIDL applications from agricultural businesses Key updates on the EIDL include: • The loan approval amount is systemgenerated based on a number of factors, noted California-based industry consultant Brad Mewes the founder of COVID19loans.org. Those factors mainly include, but aren't limited to, the following: industry, location, credit worthiness, assets, and ability to repay the loan. • SBA representatives recommend, Mewes noted, that when business operators receive the email to set up the necessary lending portal, that they take the indicated steps to accept the loan so they can begin processing it, even if the amount is less than they'd like. That will guarantee business operators at least that amount.

STATES ELIMINATE ROAD TESTS FOR NEW DRIVERS Georgia Gov. Brian Kemp signed an executive order in mid-April that waived the road test part of the licensing process and now about 20,000 teens have obtained their license without the traditional road test, reported CNET. All other requirements to obtain a license in Georgia are still mandatory, such as 40 hours of supervised driving time and a passing grade for the written portion of the entire process. If the driver is over 18 and has a learner’s permit, it’ll be automatically upgraded to a license.

Wisconsin adopted a similar system as of May 11, according to a report from Yahoo!. More specifically, the Wisconsin DOT is allowing drivers under the age of 18, who check off a series of requirements, to have their road test waived so they can get a probationary license. Wisconsin teens who previously took a test and failed it must wait until the DMVs open— scheduled May 26—to take the formal test.

decade is to tighten or replace a gas cap. The gas cap accounted for 9.2 percent of repairs in 2010; this past year it only accounted for 4.5 percent of repairs. The top five most common problems found to trigger the check engine light in the Index were catalytic converter, oxygen sensor, ignition coil and spark plug, gas cap, and mass air flow sensor.

TECHNOLOGY COULD STOP SPREAD OF CORONAVIRUS

PayPal Holdings Inc. announced that the company is now providing access to small business loans through the U.S. Small Business Administration (SBA) Paycheck Protection Program. This follows approval from the SBA for PayPal to participate in the program as one of the first non-bank institutions. “Small businesses have been hit especially hard by the coronavirus crisis. There is an urgent need to help every qualified business access the funding needed to ensure that as many workers as possible keep their benefits and paychecks. This is a race to save jobs in the present and for the future,” said Dan Schulman, president and CEO, PayPal. “We are eager to deploy our capital and expertise to do our part in helping small businesses survive this challenging period. We are thankful to Congressional leaders for ensuring the CARES Act allowed companies like PayPal to help distribute funds quickly to those businesses that are most impacted.” PayPal announced a set of measures to assist its business customers impacted by the coronavirus, including waiving certain fees and deferring repayments on business loans. SBA representatives recommend, Mewes noted, that when business operators receive the email to set up the necessary lending portal, that they take the indicated steps to accept the loan so they can begin processing it, even if the amount is less than they’d like. That will guarantee business operators at least that amount.

The Government Regulatory Compliance (GRC) and Environmental Regulatory Compliance (ERC) announced they received a grant to help reduce the spread of coronavirus by using Bluetooth technology. Apple and Google are launching application programming interfaces (APIs) and operating system-level technology to assist in enabling COVID-19 contact tracing. The technology from Apple and Google uses Bluetooth in smartphones to detect when employees come in close contact with someone that has tested positive for coronavirus. It is meant to supplement the effort of contact tracing, which is being implemented by some government agencies. While the technology will not be released until June, some collision and repair shops are already committing to use the technology under California’s Department of Public Health Respiratory Protection Program.

CARMD VEHICLE HEALTH INDEX RELEASED CarMD has released its 2020 Vehicle Health Index, marking 10 years of reporting on check engine light repair trends. The Index finds that for the first time since CarMD has reported these rankings, “replace catalytic converter” was the most common check engine light repair. A repair that has become less common over the last

PAYPAL ABLE TO ISSUE PPP LOANS

06.20 / R+W / 23

TECH TRENDS TO GROW YOUR BUSINESS • • • •

10+ SESSIONS IN A VARIETY OF FORMATS TWO COMPELLING KEYNOTES ENDLESS NETWORKING OPPORTUNITIES AND A TOUR OF NISSAN NORTH AMERICA, SMYRNA VEHICLE ASSEMBLY PLANT

Automotive Technology Summit

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

DECEMBER 6-8 • NASHVILLE

EXPERIENCE WHAT ADAPT CAN DO FOR YOU A DA P T S U M M I T.C O M

PLATINUM SPONSOR

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Covering the entire aftermarket industry with topics on legislation, repairability trends, training and the modern technician and much more. S I LV E R S P O N S O R S

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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 A D A P TA U T O M O T I V E . C O M

A D A P TA U T O M O T I V E . C O M / FA C E B O O K

T W I T T E R .C O M /A DA P T_ AU TO M OT I V E

THE ADAPT INTERVIEW

The Vehicle Download Are vehicles becoming immortal? ADAPT posed that question in a recent article that explores the increasing use of over-the-air updates in vehicles. The model was pioneered by the likes of Tesla, but now the major automakers are looking to roll out systems of their own as software becomes more and more integral to the modern vehicle. That means that the technology will land in shops before long. But how much can a software update really “repair?” Through software updates, the model of predictive maintenance, planned obsolescence and replacement of a vehicle is changing. Of course, there will always be a role for the repair shop. Structural and mechanical repairs can’t be done via a software update. But it’s just another way that vehicle design is rapidly changing. To read the article and learn more, head to adaptautomotive.com/immortal.

GETTY

DECEMBER 6 - 8 NASHVILLE, TENN.

Registration and hotel accommodations are now open for The ADAPT: Automotive Technology Summit. The full two-and-a-half-day schedule is available at adaptsummit.com.

Check out the growing list of episodes on the ADAPT Podcast. Don’t miss Editorial Director Anna Zeck’s two-part interview with Susanna Gotsch, who is an industry analyst with CCC Information Services. The organization recently released its Crash Course 2020 report, which draws from crash and insurance claim data to reveal a wealth of information on automotive trends, technology and consumer interaction. Part one dives into the ways trends will influence repair shops and how they can position themselves to thrive in the automotive future. Part two explores some of the cutting-edge transportation trends that could change the ways people interact with vehicles and, by extension, their shops. adaptautomotive.com/podcasts

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. adaptautomotive.com/newsletter

06.20 / R+W / 25

J U M P S TA R T

Frankâ€™s Automotive BY TESS COLLINS PHOTOGRAPHY COURTESY FRANK'S AUTOMOTIVE

1 / Friendly Check-In When customers walk through the door, they immediately see the check-in desk, where the two service advisors sit and greet them with a handshake, owner Andy Daniels says. The walls and desk are made of corrugated roofing, which is a look that Daniels has always liked. When he bought the building in 2003, he went for it and installed it around the shop.

2 / Distinct Details Other unique features of the check-in area are an antique gas pump and oil dispenser that were given to the shop by customers; a traffic light that can be turned on and off to entertain kids; and photographs on the walls by a local photographer and customer of the shop.

3 / Walkway to Waiting The hallway connects the check-in area with the lobby. Daniels wanted to keep the two areas separate, as the check-in 26 / R+W / 06.20

HAVE AN OUTSTANDING SHOP? Send a few photos and a brief description to submissions@ratchetandwrench.com and we might feature it here.

SHOP S TAT S Owner: Andy Daniels Location: Tulare, Calif. Size: 5,775 square feet

area can get noisy with the phone ringing and he wanted his customers to be able to really relax while waiting. Customers are pointed to the lobby with a large sign that says “Welcome” and points to the room at the end of the hall. The walls are covered with the shop’s certifications. “We have a culture of training,” Daniels says. “We’re always learning and moving forward.” The hallway transitions the look of the check-in area with the corrugated walls to the lobby with the plant and wood walls.

Staff Size: 9 (4 techs, 2 service advisors, shuttle driver, maintenance person, office manager) Average Monthly Car Count: 238 Annual Revenue: $1.1 million

4 / Kick Back and Relax

Impressed with the way his church was decorated, Daniels reached out to the person who did the decorating to help with his own shop. Together, the two collaborated on the look of the lobby and check-in area. While waiting for their vehicles, customers can enjoy coffee and tea and truly relax. The lobby was designed to be extremely comfortable; in fact, Daniels says he frequently finds customers asleep in that area. 0 6 . 2 0 / R + W / 27

Auto care news

where you need it, when you want it. ratchetandwrench.com

Columns

STRAIGHT TALK Joe Marconi

TRIUMPH IN A TIME OF CRISIS Have faith—humanity will rise to the occasion

MICHAEL HOEWELER

It’s mid-April and I can only speculate the

full impact of the COVID-19 crisis by the time you read this article. I suspect that many businesses will have suffered economically and many will have failed. Sadly, precious lives have been lost. Everyone, in some way or another, will be affected by COVID-19. Having lived through the economic crash of 1987, the dotcom bust of the late 1990s, the 9/11 terrorist attack and the great recession of 2008, I can tell you that out of every crisis there is also triumph. The strong will get stronger and the best of humanity will rise to the occasion. Shop owners across this great nation will be on the front lines making sure that all essential workers have reliable transportation. New York, where I reside, is the hardest hit state in the nation, to date. It has the most COVID-19 cases and the most deaths. When the crisis first hit at the end of February, we had a drop in sales of nearly 80 percent. It’s now leveled off around 50 percent. When you combine the impact of the coronavirus with the mandatory stay-athome order, it’s obvious that we will not see business return to normal for a while. How long is anyone’s guess. As a shop owner, tough choices had to be made and I am sure that I am not alone. With the drastic drop in revenue, it was clear that I had to do something. I tried to keep everyone employed at first with rotating schedules, reducing hours and reducing salaries. It didn’t work for my business. Twelve days ago, I cut staff in half to get payroll in line with current sales. In my 40 years in business, I was always proud to say that I never had to lay off an employee. This time, it’s different. It was an extremely hard decision, but it had to be made. Abraham Lincoln once said, “By general law, life and limb must be protected; yet often a limb must be amputated to save a life, but a life is never wisely given to save a limb.”

I now fully understand what he meant by those words. The month of March was extremely difficult. Bad news dominated the news every hour, every day. The lack of sales for nearly eight weeks left cash reserves at an alltime low. I signed up for the SBA loans and negotiated the best terms I could get with all my vendors. I calculated my new breakeven, evaluated my cash flow and made the necessary cuts in expenses. We implemented new sanitizing procedures and altered our lives accordingly. All this to accomplish these essential goals: ensure the health of my family, my employees, and save the business. So far, no one in my family or staff has contracted the virus. With each crisis comes fear, anxiety and uncertainty. However, when we look back in time, we see that humanity is no stranger to tough times. My father often spoke about the Spanish Flu of 1918, the Great Depression of the 1930s and serving in WW2. Three major events in his life in the span of less than 30 years. Fifty million people died worldwide during the 1918 pandemic, and more than 400,000 Americans lost their lives in WW2. I am not minimizing the coronavirus crisis in any way, especially since we are still in its devastating grasp. I bring up history to remind us to have faith that while there will be loss of life and economic loss, we will find a way to beat this thing and become stronger. It is my prediction that most automotive repair shops that are suffering now will eventually recover. It will be hard, both economically and emotionally for many. But when it’s all over, automotive shops around the country will rise from the crisis rebuilt, rejuvenated and re-energized. The other night on the news, I heard a truck driver thanking the automotive technicians in this country. He said that without the technicians and other automotive personnel, transportation in this country

Joe Marconi has more than three decades of experience in the automotive repair industry. He is the owner of Osceola Garage in Baldwin Place, N.Y., a business development coach for Elite Worldwide and co-founder of autoshopowner.com. j.marconi@eliteworldwide.com ratchetandwrench.com/marconi

would come to a stop. It made me proud to hear his words. The truck driver is right. We keep America moving. God bless all the essential workers, especially health care workers. But, let’s not forget the work we do each day. We don’t always get the recognition we deserve, but that’s OK. We don’t look for it and we don’t need it. We do what we do because of our commitment to our community, the industry and to the motoring public. Shop owners are strong. We find ways out of the toughest situations. We don’t fold and don’t go around crying, “The sky is falling.” No matter how tough it may get, shop owners will remain positive and lead their employees to victory. Will it be tough? Yes. Will we get through it and thrive? Absolutely! 06.20 / R+W / 29

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“MY CUSTOMERS WANT TO DRIVE OUT OF HERE FEELING AS CONFIDENT IN THEIR CAR AS THE DAY THEY DROVE IT OFF THE DEALER’S LOT.”

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* Source: Proprietary Consumer Study of Automotive Aftermarket Parts Conducted by The NPD Group, 2019. ©2020 AutoZone, Inc. All rights reserved. AutoZone, AutoZone & Design and Duralast are registered marks of AutoZone IP LLC or one of its affiliates. 30 / R+W / 06.20

xxxx 2019 | fenderbender.com 7

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A BETTER OPTION FOR QUALITY VEHICLE ELECTRONICS REPAIRS The most complicated parts demand the highest quality, and Duralast delivers Today, owners and technicians don’t have to rely only on the manufacturer to enable the safest, most reliable repair. Parts brands such as Duralast are doing the heavy lifting for them by producing equitable and reliable parts. They also can improve upon inherent design flaws, where necessary, to ensure long life and maximum safety.

750+ PART TYPES 100,000+ SKUs with 98% COVERAGE

Original parts are not the Duralast provides industry-l innovative designs tha

2 1 Duralast Improved Over OE Design

The ABS sensor is a smaller but critical electronics part. The Duralast ABS sensor actually builds upon, improves and strengthens the original design with:

Magnified View

• Thicker insulation for wire protection against abrasion for longer component life

Hardware is included for faster, easier installation

3 No pin holes to help keep salt and moisture out of the component

THIS AREA IS GLUED. NOT LIVE AREA. NO IMPORTANT TEXT/IMAGES.

This is even true in advanced technical components such as vehicle electronics, as intricate parts can cause costly problems. As the volume of complex OEM vehicle electronics parts grows, having a reliable replacement part available will be crucial to say “yes” to the repair. According to a 2019 report by BIS Research*, the global automotive sensor market is expected to grow to almost $71 billion by 2029. Today, saying “yes” to the repair means having these intricate parts available.

Magnified View

2 Larger diameter harness jacket and conductor to provide added strength and longevity 1 Thicker insulation for wire protection against abrasion for longer component life

Example: ABS Sensor Improved Over OE Design

DESIGNED FOR OE OR BETTER PERFORMANCE

ELECT

INDUST

*Source: Global Automotive Sensor Market Analysis and Forecast Report, 2019-2029, **Source: Proprietary Consumer Study Conducted by The NPD Group, 2019.

• Larger diameter harness jacket and conductor to provide added strength and longevity • No pin hole design to help keep salt and moisture out of the component and decrease oxidation and rust

Duralast even includes hardware for fast, efficient and safe installation. This is just one example of many in the Duralast line— Duralast produces over 750 part types for many makes and models spread over 100,000+ SKUs for maximum exposure and availability. Furthermore, when new vehicles come to market in the spring and fall, Duralast continually adds parts every month for late model vehicles and is usually the first to market with auxiliary vehicle electronics components, sometimes even working directly with the OE. Like all Duralast parts, vehicle electronics are tested under the greatest duress possible in highly controlled settings. Hightech lab analysis is reinforced by extreme torture testing and life cycle testing for temperature, humidity and vibration thresholds to ensure only the strongest parts make it to market and are able to withstand the coldest northern winds, the muggiest southern air and the bumpiest, most challenging off-road treks. Duralast parts are exclusively sold through AutoZone, and with thousands of locations and online ordering capabilities, Duralast high-quality parts are readily available to make your shop more efficient. With leading selection and coverage in over 20 parts categories of OE-or-better quality, more technicians choose Duralast parts**. Visit DuralastParts.com to see the full selection.

Designation :

Essentia In a time of crisis, the strongest

leaders look for opportunity 32 / R+W / 06.20

by tess collins

Toward the end of

March, auto repair shops were given a classification that many other small business owners were not so lucky to

getâ€”essential business. That was a leg up on many other small businesses. Beyond that, it was every person for his or herself. What shop owners chose to do with their designation and the time that they had with their customers rested solely on them. Unfortunately, many shops were not able to make it and many more had to make difficult decisions, such as laying off good employees. Many continue to suffer financially and are taking each day at a time. In order to succeed, now is the time to take the essential business designation and wear it as a badge of honor. Earn it. Earn it from your employees, earn it from your customers and by doing this, youâ€™ll survive this and the next obstacle that is sure to come your way.

06.20 / R+W / 33

D E S I G N AT I O N : E S S E N T I A L

Catching Fire

Craig Noel’s 15-year-old son, Tyler, passed away from a rare disease that caused physical and mental handicaps and respiratory complications in 2007. Throughout his life, Tyler suffered pneumonia 4-6 times per year and was often visited by the paramedics. So, when COVID-19, a respiratory disease, became a concern overseas, Noel paid more attention than many as it struck a personal chord with him. “COVID-19 really hits home with Marci [Craig’s wife] and I because of how directly it was relatable [to their life],” Noel says. He was well aware of the impact diseases like this can have. But, from a business standpoint, the owner of the three locations of Sun Automotive in Oregon didn’t feel an impact until the second week in March. It was around this time that stay-athome issues were put in place, forcing many small businesses to shut their doors—and some, unfortunately, forever.

C OV I D - 1 9 ’ s I m pac t o n B u s i n e s s A r e g i o n a l lo o k at av e r ag e c a r co u n t a n d a r o

Av e r a g e C a r C o u n t b y R e g i o n :

1 2 . 33 1 1 .0 6 9.78 8 . 51 7. 2 3 5 .9 6

Business as (Un)usual

In mid-March, Ratchet+Wrench surveyed nearly 1,000 shop owners on the pandemic’s impact. Of those, 78 percent said they altered their business and 88 percent had experienced a negative impact [See: COVID-19’s Impact on Business]. “It’s an ever-changing landscape, almost hour by hour,” Josh Bird, owner of the 1,500-square-foot $370,000-per-year Bird Automotive in Oak Grove, Mo., says of the new reality that small business owners around the nation are now living in. At this point, it’s hard to know how businesses will rebound, Aaron Lowe, senior vice president, regulatory and government affairs, Auto Care Association, says.

Av e r a g e a r o b y R e g i o n :

Stopping the Bleeding

Although Brad Jenner, owner of the $1.2 million-per-year Affordable Automotive Repair in Fredericksburg, Va., saw a steep drop in car count from an average of 100 cars per week to anywhere between 25–50 during the pandemic, he’s been able to retain his staff of 7. One way he’s done this is by cutting his budget where he can. For example, Jenner cut almost all of his advertising budget for new customer acquisitions and is focusing his efforts on getting the word out to his loyal customers. 34 / R+W / 06.20

$579 $5 6 6 $5 05 $5 01

$4 83 $4 4 3 $4 3 9 $4 07

Information courtesy of Tekmetric

Applying for funding from the government and asking for delayed payments from vendors were other strategies for staying afloat, as well as cutting non-essential costs.

Safety First

This pandemic has changed how people interact—perhaps forever. The days of gaining a customer’s trust with a handshake are on hold. It’s about a new kind of business interaction, Jim Lang, president of Lang Marketing, says, revolving around reducing social interaction. In order to maintain customers in this “new normal,” businesses need to find a way to create a frictionless, non-threatening experience for customers, Lang explains. Since the aftermarket has always been a primarily person-to-person type business, it will be a major adjustment. According to Lang, this may give MSOs and dealerships a leg up, as they’ll have more resources to be able to provide measures like larger waiting rooms, sanitation supplies and staffing to allow for pick up and drop off. However, many independent shops, including Bird’s, are offering pick-up and drop-offs and offering touchless transactions.

Advertising ‘Essential’

When paramedics save your child’s life 10plus times, you develop a deep respect for what they do, Noel explains. Noel had to call first responders often, and he says that the personal relationship that he developed with them helped him and his family get through an extremely difficult time. “We knew all of the EMT drivers by name,” Noel says. “They knew who I was— it was like that throughout his entire life.” Tyler’s physician, in particular, went out of his way to create a personal relationship with Noel and his family. Noel continues to hold those in the medical field in the highest regard and, when the pandemic hit, he knew he wanted to find a way to support them. “My heart goes out to them,” Noel says. Noel started a campaign for free oil changes for medical workers. Noel didn’t do it for the publicity, but the campaign has helped get his name out there and his monthly revenue for April 2020 is

“We are on pac e f o r a yearov e r -y e a r reco rd for April a n d h av e n ot even n eed ed to co nsi d er any l ay o f f s . ” Craig Noel owner Su n Automotive

better than it was in April 2019 ($110,000 versus $109,000). At the end of April, the 3-locations saw 60 first responders take advantage of the campaign, and was scheduled a week out for the service. The campaign helped stabilize car count and contribute to an ARO of $624. “We are on pace for a year-over-year record for April and have not even needed to consider any layoffs whereas the dealers and other local independents have had to make serious decisions and laid many off,” Noel says. “We have been the strongest independent repair shop in the county.” Sun Automotive’s free lube, oil and filter changes for front line medical personnel and first responders through Memorial Day is just one example. Co-owners of the four-location Craftsman Auto Care in Virginia and husband-and-wife team Matt and Judy Curry, created the “Feed a Hero Campaign,” which, as of the first week in May, raised $32,000 and provided 3,000 meals to medical responders. Bird is buying two gift $25 gift cards per week from local businesses that he’ll use for promotions or giveaways later in the year.

Clearly Communicate.

During the first few weeks of the stay-athome order, Noel realized that many of his customers did not know that his shop was considered “essential.” “The general consensus was that it was police and firefighters, not auto repair,” Noel says. Lowe says that this is one of the issues with which the Auto Care Association has dealt. Creating a promotion like Noel’s thank you to first responders helped draw awareness that his business is indeed open. Prasanth Chilukuri, co-founder and CFO of the management software company, Tekmetric, says that shop owners need to “market like crazy,” and let their customers know that not only are they open— but they haven’t forgotten about them. Noel, for example, is reaching out to all of his customers that haven’t been in the last year and that have had repair recommendations.

Reframe the Message.

Now is not the time to be pushing a promotion vehicle check-ups “just in time for a summer vacation.” The Currys had to change their 06.20 / R+W / 35

D E S I G N AT I O N : E S S E N T I A L

messaging overnight and continue to adjust what they put out. When the virus first hit, they released videos explaining their hygiene and safety protocols. “Everything we can do to make them [customers] feel comfortable and calm,” Judy says. “We’re trying to be leaders and put the message out there that we’re here to serve the community.” Not only did the message need to change, but the frequency did as well. Instead of sending out its newsletter every two weeks, they increased to weekly. Sun Automotive’s homepage has a message to its customers about COVID-19. The message clearly outlines the company’s focus (the health and safety of the community) and measures (pick-up and drop-off and delivery services). Smaller adjustments that could easily be forgotten, like getting the new hours on the website, also need to be done, Judy says.

Seeing the Light

During the Great Recession, Noel was working as a technician and a service advisor. In 2007, his son passed away. While he was dealing with a profound loss, he was also experiencing an extremely stressful time in the economy—much like what is going on right now. “I felt that, He doesn’t give you any more than you can handle. How much worse could it be?” Noel says. During a time when many were losing their jobs, Noel decided to go after what he always wanted—a position in management. During this time, Noel actually took a pay cut to train as a service advisor so he could get the experience and knowledge that he needed. While doing this, he was introduced to the former owner of Sun Automotive. If it wasn’t for all of that he went through during that time, Noel says he wouldn’t be in the position that he is today. Every experience is a lesson, and Noel has a wealth of knowledge when it comes to overcoming adversity. “We have to remember that, just because they turn the light switch back on, things will not return to normal,” Noel says. “There are people that have been displaced. What I’m preparing for is people 36 / R+W / 06.20

not having a job and they’ll make decisions similar to the 2008 financial crisis.” Luckily for the independent shop owner, that bodes well. Since there won’t be the money to purchase new vehicles, many will need to maintain the cars they already have and may actually bring more business than normal.

Prepare for an Uptick.

“For those that survive, it will be a really good summer,” Bird says. “I think it could be one of the best summers ever for auto repair.” He’s not alone in that sentiment. Lang says that this pandemic will impact the average age of vehicles on the road and that new car sales will go down. Bird has started to see this, as he reports April was his best month yet, with a car count of 80 and an ARO of $445 for his two-person shop. When life returns to whatever the new normal will be, businesses need to be prepared for an immediate uptick. “It will turn around—it’s just a question of how long it will take,” Jenner says. “I have a feeling that when it turns around, it’ll come around pretty quickly and we need to capitalize right away.” Maintain business as usual, even during slower times, Matt says.

Deliver an Exceptional Experience.

“I have a philosophy in regard to business today and how it will be critical that we return to an old style of doing things,” Noel says. In 2008, he learned that, in order to survive, he needed to increase his business’ value and change the industry’s stereotype. Little touches, like dressing professionally, helped secure his job and kept customers coming back. In the time of COVID-19, it will be the same. “At the end of the day, people make decisions based on person-to-person contact. It will be your experience, how you are dealt with—I don’t think it will be all of the white noise that will affect that,” Noel says. Referred businesses will be the ones that thrive, he believes. Go that extra mile by offering to pick up medication and groceries or filling up a kid’s bike with air may keep you in business for years to come.

identify an Opportunity.

One positive outcome? The talent suddenly available. This gives shop owners the opportunity to make new hires. “I’m excited about the future of the talent pool,” Judy says. “It’s been difficult the last year because everyone was happily employed. Now, this will all change because there are so many people that have been laid off. It’s an opportunity to entice high caliber, talented people to come on board with us.”

Adjust to New Trends.

This pandemic has changed the trajectory of the automotive industry. Two major trends that will be impacted are rideshare and EVs, Lang says. Consumers don’t want to use ride share at the moment, leading the formly buzzy mode of transportation at a standstill. At the end of April, GM shut down its Maven ride-sharing program. Before the pandemic, OEMs announced new EV models with increasing frequency. Now, with gas prices so low and the likelihood of rebates checks slim, that’s on hold, Lang projects.

Move Forward.

While the situation will have economic repercussions, the fact remains that drivers will need vehicle repairs. That leaves independent automotive repair shops well positioned, Lang says, but the urgency may not be there. Shops have to be prepared for customers with less disposable income. That’s why they need to highlight value now more than ever. A customer will pay more to ensure his or her safety and go to a repair shop he or she trusts. A crisis slows many things down, Lang says, but can also be an accelerator. Platforms to schedule online appointments will be used more frequently and companies like Amazon that can deliver parts and cut down on interaction will be a threat. From getting to the grocery store during the stay-at-home order to keeping ambulances up and running, this situation has opened Lowe’s eyes to the importance of the transportation industry. Those that have made a name for themselves in the community and shown their dedication to their customers and their communities will leave a lasting impression.

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S H O P S P OT L I G HT

Ultimate Auto Repair: Karl Roekle ENDLESS POSSIBILITIES Orininally orom àetroit, arl oekle always dreamed oo movinn to the coontryside. Aoter ten years oo workinn as a prototype ennineer oor the Ford Motor Company, he moved with his wioe and two daonhters to ackson, Michinan. arl started ltimate Aoto epair in ËÊÊÉ to provide oor his oamily where he was fiinn vehicles oor the amaainn people oo ackson oot oo a arn on his property. He was the sole owner, technician, and service writer.

Business picked up over the years, and Karl was able to assemble a small team and build his own on-premise shop management system. In 2010, he decided to move Ultimate Auto Repair to a larger space two miles from his house. He was able to employ more people but eventually hit a growth cap. After switching to Tekmetric, Karl was able to accelerate over the hump and more than double his business. Today, they7re still growing every month.

Rippi n g t h e Ba n d % Ai d f f With my old system, I was stuck. Each technician would have 椀ve or six clipboards, and they'd have to shu e and 椀gure out what was authorized and what wasn't. To 椀nd out anything, I had to do it manually. It's no fun at the end of the month trying to count how many cars and work orders we did. There was no way that we were going to make it any further without making a lot of changes.

I was afraid to make the change. I thought, "Tekmetric has a lot of good stuff going, but I'm not sure". And then everything came to a head. My laptop crashed. I couldn't get into the old program. We had been talking about making the change, so I grabbed my service writer and said, "We're making the change right now". It was like ripping off the band-aid. By day three, I said to my team "Hey guys. I'm sorry about the stress". And they said, "Stress? Are you kidding me? This is way better! We don't have to look for a work order on the wall!" They took to it right away.

Ti c k et to ' r ee d om

S H O P P RS OHFOI PL ES T A T S

Ultimate Auto Repair Owners: Karl Roekle Location: Jackson, Michigan Staoo: 9 Averane Monthly Car Coont: 246 Averane epair Order: £¦02 Nom er oo Bays: 6 Shop Mananement System: Tekmetric

You can't run a million dollar shop with one guy having to be there. Tekmetric gives me the freedom to leave for days at a time and everything keeps running. I can show the guys what to do, and they can duplicate it. Before, vacations were almost impossible. Now, I can leave and know the shop will keep running. With Tekmetric, it's all right there. My team has everything they need.

Reali z i n g t h e ote n tial We're moving into commercial diesel. In Jackson, there are a lot of general contractors, plumbers, and electricians. I'm cleaning out the spare building on my property and putting in four bays, then we can concentrate on commercial diesel customers over there and get their trucks in and out quickly. It's awesome because I can set that up in Tekmetric as its own repair shop. I can track the eiffciency of service writers and technicians in each building. Growing my business allows me to get people good jobs—jobs that weren't necessarily available to me. The possibilities are limitless.

I was welded to the place without Tekmetric. If I wasn't there, nobody knew what to do. Now, they know. Visit

tekmetric.com/shop-spotlinht to read the full story. For more information about Ultimate Auto Repair, visit www.oltimateaotorepairmi.com

0 6 . 2 0 / R + W / 37

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THE ULTIMATE TOOL FOR CUSTOMER RETENTION HoodHub: Diagnostics at a Distance for All of Your Customers

On the western edge of the Nez Perce - Clearwater National Forest about 200 miles west of Missoula, MT, an industrydisrupting shift in how auto repair shops manage customer retention and repairs is quietly taking place as data is seamlessly sent from the cars of over 100 customers to Erber Auto, a repair shop in Moscow, Idaho. The company behind this emerging force is HoodHub, a small data-driven startup

currently in beta testing with several auto repair shops across the country. HoodHub uses the OBDII port and syncs real-time diagnostic data simultaneously from hundreds of your customers' smartphones, so you gain accurate, timely, and nearuniversal insights into the status of each vehicle. Instead of looking backward and attempting to diagnose a problem days or even weeks after it occurred, HoodHub provides

proactive analysis now to offer the best service available to vehicle owners. â€œLong-lasting relationships thrive on trust, not transactions,â€? muses Isaiah Taylor, longtime software engineer and primary visionary behind HoodHub. At the local auto shop he cofounded, Taylor was hindered by automated repair software and shop CMS systems that relied on regularly-timed intervals for service check-ups and updates.

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“Time is not usually a helpful metric for service. I asked myself how to best serve our customers. We do it by contacting them the moment something actually occurs within their vehicle,” he says. HoodHub became a reality soon after that. Taylor explains that real-time data from the vehicle to the shop offers instant analysis of codes while also adding to the historical record of the vehicle itself. Instead of a driver worrying about a new check engine light, for example, HoodHub shops simply call or text the customer directly to let them know what’s going on and how the problem can be solved. “If you want to establish longterm relationships with your customers by proactive analysis, transparency, and action, HoodHub helps you accomplish that,” he says. Over time, HoodHub enables the preliminary diagnosis at the moment a car starts “throwing codes,” Taylor says, and establishes baselines for typical car metrics to further inform technicians when it’s time to make a repair. Drivers benefit through transparency, yielding more timely and necessary service and better maintenance. Shops benefit from knowing the whens and wheres of each and every code in real-time. HoodHub operates in the cloud and includes a mobile app for drivers and a website for the shops. A shop manager can access their HoodHub console from any computer or device, at any time, from anywhere in the world. Customers don’t get access to the data, but the shop receives a continuous live feed of information from the cars and can interact with customers through the app. The potential for better service is limitless.

OFFER TRANSPARENCY TO FOSTER TRUST

“It’s a game-changer,” says Jonathan Erber, head technician and co-owner (along with Taylor) of Erber Auto. “After explaining it to customers, they often ask for more HubLinks for their children’s vehicles. Moscow is a college town—the University of Idaho is here—and parents want to know their kid’s car is safe to drive.” "We also have clients that drive

HOW DO YOU BEST SERVE YOUR CUSTOMERS? "WE DO IT BY CONTACTING OURS THE MOMENT SOMETHING ACTUALLY OCCURS WITHIN THEIR VEHICLE.” Isaiah Taylor, software engineer, co-owner of Erber Auto, and founder of HoodHub

older cars and don't have the money to fix every issue that triggers a check engine light. They drive around thinking that they already know why their check engine light is on. Without HoodHub installed, they would have no idea that a newer, more critical issue has surfaced.” “HoodHub both depends upon and builds trust,” he says. “It’s simply remarkable.”

LEVERAGE TRUST TO BUILD YOUR BUSINESS Safety-driven data provides deep relational foundations (along with premium auto care) and is the reason why Taylor and Erber’s shop enjoys over 60 perfect 5-star

"IF THEY KNOW YOU HAVE EYES ON THE HEALTH OF THEIR VEHICLE, YOU AUTOMATICALLY BECOME THEIR GO-TO SHOP. OUR CUSTOMERS DON’T GO ANYWHERE ELSE.” Jonathan Erber, co-owner of Erber Auto, and head technician of HoodHub

Google reviews and enviable CSI scores. Despite only opening in 2017, Erber Auto is at capacity every day of the year. Erber Auto offers the HubLinks to their customers for free. HoodHub’s pricing model allows shops to simply give away the service to customers, resulting in huge retention benefits. “The ROI cannot be understated,” Erber says. “People will not turn this service down unless they’re the type of person who likes to worry about their car, and that’s not most drivers. If they know you have eyes on the health of their vehicle, you automatically become their go-to shop. Our customers don’t go anywhere else.” Erber explains that freely giving out a device to keep customers safer is the best marketing tool he’s ever seen. “As fast as customers want them, we give them away. Where else can you advertise and get that kind of immediate, guaranteed return? We spent $5,000 putting ads on grocery receipts and 10 people brought them in. You can burn through money so fast and give people nothing, but if you’re giving them something, you’re doing more—you’re offering service that can’t be bought. That’s loyalty.” For Erber, HoodHub isn’t just a device to keep the doors open and food on the table—it’s an invitation to a healthier, safer community of drivers and people. It’s an open door to a better future. “And it’s going to spread like wildfire,” Erber says. To order or learn more, check out HoodHub.com

T O O L B OX / S A L E S + M A R K E T I N G

Capture Customers Through Video

The dos and don’ts of engaging and effective social media content BY TESS COLLINS

A 6-minute video filmed of himself

building a transmission earned him 10,000 likes on Facebook (bit.ly/ transmissionrebuild). Ten thousand likes. Let that sink in for a moment. Tim Rodifer enjoys doing this work, so he figured he’d film one and then post the video (sped up, of course) but he had no idea how well it would do. But, looking back now, it makes sense. The way he sees it, customers who spend a few thousand on a transmission repair appreciate being able to see all of the work that goes into it, and helps 42 / R + W / 0 6 . 2 0

them put their trust in his shop, Mr. Transmission in Johnson City, Tenn. “As of two years ago, we were the No. 1 liked auto repair shop on Facebook,” Rodifer says, and is quick to apologize to anyone that’s overtaken them, although he doesn’t believe anyone has. Mike Maleski, owner of PSK Performance and PSK Auto Repair in the Pittsburgh-area has also gained a following in his area through his social media videos. Maleski has over 1,500 followers on Instagram and already has 1,000 likes for his TikTok channel. That type of notoriety doesn’t come

overnight, but it actually hasn’t been that difficult for either shop owner, once they figured out exactly to what type of content their audiences reacted positively. Maleski and Rodifer share the dos and don’ts of creating video content for social media. Do: Know your platforms and their respective audiences. “Each platform is for a different need and a different type of customer,” Maleski says. For example, he says that the average age of his clientele on Facebook is 35

is a business page, not your own personal account, so remember that. Do: Balance sales and educational content. “Providing valuable content and education is important,” Maleski says. “If we provide valuable content to our customers, they will appreciate us and watch our content if they have something to gain from us.” Maleski says his customers respond much better to “how to” videos than when he pushes state inspections. That being said, there is a way to tease upcoming sales you’re having at your shop. For example, if you’re doing a brake special, you can post videos on the different kinds of brakes or what a bad brake versus a good brake looks like, Maleski says. This way, when you do post about the sale, the customer isn’t blindsighted by the sales pitch and there’s a connection there.

and over and his Instagram posts attract a much younger generation. Don’t: Be on a platform for the sake of saying you’re on the platform. Be honest, some of you reading are thinking to yourself, “What’s TikTok?” and that’s OK. Maleski and Rodifer have both gained quite a following on the more well-established channels, like YouTube, Facebook and Linkedin, so they’re challenging themselves by creating content for this newer, shortform video sharing platform. That doesn’t mean it’s for everyone. If you’re already doing a great job with your Facebook videos, this is worth looking into. If not, first master a platform you’re more comfortable with and already have a built-in following.

Do: Keep it short. It depends on the platform—TikTok, for example, showcases 6 to 15 second videos—but when it comes to length of a video, Rodifer says the shorter, the better, in this short-attention spanned society. 3 minutes is what he recommends. Longer is fine, but he warns not to be surprised if there’s a large drop-off at this mark. Think about the type of videos you watch— shorter is typically more appealing. Don’t: Push your own agenda. “My business is not a platform for my own personal thoughts,” Rodifer says. This should go without saying, but stay away from politics and anything that may offend someone. Rodifer carefully monitors what he posts on his page to make sure that it’s agreeable to the community and will not upset anyone that could potentially come into the shop. This

Don’t: Overthink It. For those of you that haven’t created video content for social because you don’t think you can spend the money on video equipment, Rodifer and Maleski have news for you: It doesn’t need to be a huge monetary investment. “A big production, it’s trying to make it more than it is,” Rodifer says. Maleski has a few videos that have been professionally produced by a friend of his, but both he and Rodifer agree that sometimes the best and most relatable videos are shot with cell phones. Rodifer says with how technologically advanced cell phones are, the quality of the videos that he shoots with his are quite good. Do: Be relatable. Rather than spending on equipment, use your best asset—your people. Both Maleski and Rodifer are in their own videos, as are other people that work in their shops. This creates transparency and helps the customers feel more at home when and if they do decide to come in. It makes you more approachable. Plus, if the person in the video has a large Facebook following, there’s a chance that the video will reach more people. “I have a 27-year-old that works for me that’s always sending out Facebook requests,” Rodifer says. “He’s got 2,000– 3,000 friends.” That’s a lot of potential new customers. 06.20 / R+W / 43

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FAST TRACK YOUR BUSINESS

Columns

INDUSTRY INSIDER Rissy Sutherland

INSPECT WHAT YOU EXPECT You can’t blame your staff if you’re not holding them accountable

FUE VANG

Last week, we were doing a deep dive

into the numbers at our shop, including how many calls are converted and how much work is sold. If we did a great job with what we have, we would be killing it right now. However, phone skills just aren’t where they need to be and the amount of calls that are being converted is less than desirable. On top of that, when they do come in, critical car repair needs are taking too long to be presented to customers. Is the staff to blame? No. You, as the leader, need to make sure that your staff is doing what you expect of them. Here’s how I go about holding my shop owners accountable. When someone has less-than-desirable results and customers aren’t coming in, I ask to see what is happening. I say, “show me.” I want to see how they’re interacting with customers. Most of the time, if customers aren’t coming in, the phone skills or texts that are being sent are subpar at best or it takes too long for the work to be presented once a customer does come in. A week after we’ve run through this, I go through the exercise again. This time, they are prepared for me to say, “show me,” but I get a lot of excuses on why it’s not up to par. There are excuses for why the service manager won’t take the time to properly present the work to a customer or why the tech doesn’t have time to properly interact with the customers. Remember, this isn’t on your staff. I’ve heard every excuse in the book for why a customer won’t convert. So, the next step is practicing customer outreach together. Here’s how we do it. Together, we send out a certain number of texts and we time every safety presentation to the customer on a given day at a shop. Once that’s done, we listen to all of the phone calls and take notes. We do the same thing with the presentations

and we take another swing at it. Then, something remarkable happens—it’s a record day. Here’s my point: You don’t have to advertise more and throw away dollars in order to get customers to come in and sell more work. You don’t need to put pressure on customers to increase sales. The key to increasing your numbers is to set goals and hold yourself accountable. One way to do this is to track numbers so you’re prepared to give 30-minute, hourly and daily updates on your conversion numbers. In my experience with the shops that I work with, if we do phone skills training and role playing every other week and then listen to the calls that are being made on a daily basis, we double our phone conversions. Still not convinced? If doing this leads to just one more converted customer per day, that could equal roughly $6,500 per month in sales. That’s over $72,000 per year. It’s worth your time and effort to do it. So, for those of you who still have excuses and “don’t have the time” for phone training or tracking results, think about that extra income. It’s worth your time and effort to just do it. And, for anyone out there that thinks their shop is already doing a great job and says the classic, “my sales are down but we’re doing a pretty good job on phone skills,” I challenge you to listen to all of your calls because it’s clearly not happening. I also challenge you to take a stopwatch and time how long it takes critical needs to be shown to a customer. If we were to present all safety items to a customer within 10 minutes—this does not require an estimate, you can walk them right up to the car—we could double our conversions and therefore our sales. With the possibility of numbers like that, it’s

Rissy Sutherland has opened more than 400 shops in her career as the executive for nearly a dozen automotive brands and now the president of SRS + Co. She is one of the industry's foremost experts in shop operations. sutherlandrissy@gmail.com ratchetandwrench.com/sutherland

worth your time and effort to just do it. If calling customers or sending out 50 texts per day would get at least 10 appointments or comebacks for customers that would equate to $4,000–$6,000 additional sales per week, you would say it’s worth your time as a shop owner to check and make sure this is happening every hour. Just do it! See what happens. The lesson is we can’t expect anything from our staff if we aren’t willing to inspect it or do it ourselves. But, if we put in an extra 10 percent, we can double our sales, have happier employees and customers which will result in a happier you. 06.20 / R+W / 45

T O O L B OX / H U M A N R E S O U R C E S

Keys to a Successful Wellness Program How health initiatives can improve your shop’s culture BY A B BY PAT T E R S O N

shops to recruit the right people. And, as millennials are the main recruits coming into the workforce, shops need to tailor to what they want. According to a Qualtrics study, 64 percent of millennials say benefits are extremely or very important to employer loyalty. In other words, it’s important to provide an environment that enriches their lives. Creating a wellness program for your shop is just one of the ways to do it, and there are professionals out there that can help you get there. In fact, Ratchet+Wrench sat down with an expert on creating a wellness program. Jason Busta, senior director of corporate wellness for the YMCA of the Greater Twin Cities (Minnesota), answers the most pressing questions on providing a wellness program in your shop. What are the benefits for a small business, the employees, and even customers by having a wellness program? 46 / R+W / 06.20

There are numerous benefits for the business and employees. Studies show that healthy employees are more productive, take less sick days, and have less health issues in general; typically, this also leads to less health insurance claims, too. All of these benefits can have a major impact on a company’s bottom line. Employees really are the lifeblood of any organization—and healthy employees, in addition to all the reasons mentioned above, are generally more positive and happy, which improves customer service. How and why will providing a wellness program increase employee retention at a small business? In a competitive job market, attracting and retaining talent is obviously a major challenge. And, oftentimes, there is only so much business owners can do to increase wages. By offering wellness benefits, it not only shows employees

they are valued, but it truly can make a difference in keeping employees at a fraction of the cost of providing other benefits or increases in employee wages. What should an employer add to their wellness program that will help address some of the health issues you listed above? Employers can combat these issues in many ways. Some of the easy options include encouraging walking meetings, offering healthy snack options, like fresh fruit or oatmeal as an option vs. donuts, and having different water or tea options—a nice alternative to pop or other sugar-filled drinks. Shops can also offer wellness classes at the workplace, like yoga or meditation, if space permits, of course. Companies can encourage actions that promote activity outside of the workday. This could be giving employees reimbursement for joining a gym, paying for a portion of a 5K race, creating a movement challenge between

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With the tech shortage, it’s essential for

employees, even pairing a physical activity with volunteering, like Adopt a Highway or a camp clean-up. In general, how does a business set up a wellness program? What steps does one have to take? If you do not have anything in place currently, I recommend starting small to build up a program. First, identify one or two things you can do that will encourage healthy activity or behaviors. If you have employees that are very passionate about health, fitness, and wellness, leverage those individuals and make them a “wellness champion” for your business. Everyone is trying to do less with more, so do not be afraid to find out what options might be available for places in your community already, like a local community center or other workout facilities. For example, the YMCA can assist companies and help them come up with some areas to focus on to support your wellbeing program.

How much does an employee wellness program generally cost? Costs can vary greatly—from a few dollars to thousands of dollars. Some companies put a lot of financial resources into a program and it can be expensive, and some organizations are just starting out and need a more affordable option. Per a Forbes magazine report, consider a 3-to-1 ratio—the average return on investment for an employee wellness program across industries and company sizes. What types of wellness program plans are out there? There are a wide variety of options for wellness plans for companies. They will vary depending on numerous factors for the business, including the number of employees, the budget, a timeframe in which a company wants and needs to implement a program, and a certain focus or passion of the company. The type of information will help guide a shop’s decision making. It can be very

basic by offering a group fitness class one time or offering health food and drinks at staff meetings. A program can also be extremely elaborate and offer fitness tracking, fully paid health club memberships for staff, and onsite meditation, for example. Every organization has the opportunity to do more and encourage companies to consider options that make sense for their team. What are some aspects an employer can include in their wellness program? Options can cover a wide range of things such as having a chef-prepared healthy meals to simply swapping out sugar-filled drinks or having an outside vendor come provide a company-wide weight loss challenge, including weekly weigh-ins, on-site cooking classes and meal prep, and exercise classes. Another option that has been popular is “workout on us”—paying staff an hour of work time to go exercise. 0 6 . 2 0 / R + W / 47

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Columns

THE BOTTOM LINE Mitch Schneider

A LEADER’S GLOSSARY The words that define strong leadership

MICHAEL HOEWELER

No one can dispute the challenges we

face caused by the disruption of COVID-19. The impact of the novel coronavirus continues to reverberate across the globe, demanding unprecedented qualities of leadership. There has never been a time where more has been asked of us. Nor has there ever been a time where our clients, customers and communities have needed us more. Strong leadership is needed now more than ever. There are opportunities for each of us to practice great leadership every day, especially in times like these. To do that it's important to understand at least some of the important factors that make a strong leader. I’ve built a glossary of leadership terms to help facilitate that understanding. These words help paint a picture of what effective leadership looks like. The first of those is integrity. It comes from the Latin “integer” and is generally accepted to mean intact or whole. It means being true to yourself. Your values and principles. Another is genuine. Great leaders are authentic. They are consistently who and what they appear to be. Great leaders are transparent. There is no hidden agenda. Their words and actions match. Effective leaders understand there is a difference between interest and involvement. And, while they are likely to demonstrate a genuine interest in their constituencies, they realize appearing interested is not enough. To be truly effective, they must take the next step and get involved. Involved with their teams. Involved with their constituencies, organizations, families, clans and tribes. There are other words in a leader’s glossary that are uniquely appropriate to

a discussion like this. Words like focus. It's critically important for great leaders to remain focused on the task at hand. However, that focus is most essential within the context of the leader’s vision. That vision of a better future is critical and depends on a leader’s willingness and ability to communicate. And, the ability to communicate clearly, concisely and often cannot be overemphasized. That kind of candor requires a level of self-awareness only the best leaders share. A kind of self-awareness that allows you—as a leader—to understand and accept your strengths, weaknesses, and abilities. Great leaders understand the people they are trying to lead are watching what they do as much as they are listening to what they say. Because everything around us appears to be in a constant state of flux, leaders must be flexible and adaptable. They must be agile as well. Exhibiting the ability to be able to move and move quickly. Leaders must be resolute. They will need to make hard choices without questioning the decisions they’ve had to make once they’ve been made. The best leaders demonstrate empathy in everything they do. They are able to walk in the shoes of those they seek to lead. A sense of historical perspective is needed, as well. The ability to use the lessons of the past to navigate the waters of a treacherous future in order to convince those you seek to lead that things will get better because they always have. That means leaders must be optimistic. And, that if you’re going to lead, you’re going to need a bit of imagination to go along with that optimism in order to succeed. Leaders need to exercise a fair amount of self-control as well. People will not allow you to influence or control their

Mitch Schneider is a fourthgeneration auto repair professional and the former owner of Schneider’s Auto Repair in Simi Valley, Calif. He is an industry educator, seminar facilitator, blogger, and author of the acclaimed novel Misfire. Contact him at: mitch@misfirebook.com. mitch@mitchschneidersworld.com ratchetandwrench.com/schneider

actions unless you are able to show them you can control your own. This points toward a fair amount of relationship management. I don't mean micromanaging behavior. I mean managing relationships in order to elicit the active and voluntary participation of those you seek to lead. You must be creative in the solutions you come up with. You have to recognize the participation, hard work, effort, and willingness of those who choose to follow. And, then, demonstrate your appreciation in ways that are both tangible and public. There is one more word in the glossary worthy of consideration and that word is hope. Great leaders live with an unshakable certainty things will get better. And, the knowledge they can help create that better future. 06.20 / R+W / 49

Columns

THE FIXER Aaron Stokes

CHANGE YOUR PERSPECTIVE The new normal is here—how will you adapt?

reflecting on the past few months and thinking, “Wow, what a crazy ride.” Whether or not you were heavily impacted, it’s crazy how the entire nation kept thinking it was going to end and it kept— or continues—to drag on. We’ve all been stuck on the ride. As a leader, however, it was not the time to have a meltdown or panic. It was time to strategize and react. It’s impossible to tell exactly where we’ll be in June when this comes out, but I know that it will be a new normal. How many of you have heard, “Good habits are created in bad times, bad habits are created in good times?” In other words, when business is good, we tend to overlook certain best practices and when we’re struggling, that’s when we really step everything up and perform to the best of our ability. We should treat every day as though we’re struggling to get business— because we are. We should be performing to the best of our ability every single day. This entire situation has given me an entirely new perspective and caused me to look at where I could improve and areas that I may have been neglecting because I took for granted that business was good and everything was running smoothly. Let me give you an example. One area I’ve re-evaluated is my staff. Because business across the country was so heavily impacted, many had to make layoffs. That’s the number one call I’ve been getting as a coach. Shop owners are calling me because they’re scared to lose their best people. Now, take a step back and think about the people that you weren’t scared to lose. If they’re 50 / R+W / 06.20

still with you, ask yourself why and, if you laid them off, why you needed to wait for a disaster to happen to let those people go. Many of you are probably thinking, “Aaron, all of my people are great and I didn't want to and never want to lose them.” Great! But, chances are, there’s another area in your business that you were lacking in before this all hit. Something that maybe you were a little more lax about than you should have been. Maybe it was your customer check-in process, and this one, let me tell you, is something that everyone will need to reevaluate. Let me explain. We can’t make the same assumptions that we did before. What we used to do to gain trust was shake a customer’s hand and look him or her in the eye. People may not want to shake hands for a very long time. Now, you need to earn trust over the phone or through email. We have to hustle and push to make it happen now more than ever. We don’t know what the future holds and that’s scary. But, what if we looked at this from a different perspective and turned it into a good thing. This is causing us to get our stuff together—to push us to the next level. As I mentioned in my last column, I believe this summer will be some of the best times for those in the automotive repair and, for those that are still open, the rush is coming. Taking advantage of this summer will require every bit of our talent and expertise, so start rethinking how you run your business today. This is an unusual time and a very unique situation that we’re coming out

of, but we’ve all weathered bad times— remember the last recession? This is probably not the first bad time you’ve encountered as a business over and, I’ve got news for you, it won’t be the last. Remember your first days as an owner? Remember the hustle? The drive? Find that again. Change your perspective and treat every day as if there’s a disaster around the corner and stop falling into bad habits.

Aaron Stokes grew his business, AutoFix, into a six-shop operation that is widely regarded as one of the top repair businesses in the country. He is also the founder of Shop Fix Academy. aaron@shopfixacademy.com ratchetandwrench.com/stokes

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At this point , we’re in June and you’re

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