NOLN - April 2023

WHAT IT TAKES With 63 stores as part of his auto care empire, Kirk Umphrey is an industry success story PAGE 26

A Leader’s Journey Throughout his career in the industry, Lube Management Corp.

CEO Kirk Umphrey has navigated change while achieving greatness along the way.

PREPARING FOR SHOP NO. 2 PAGE 38

HELPING LOW PERFORMERS

PAGE 32

MANTAINING YOUR GOOD NAME

PAGE 33

APRIL 2023 � NOLN.NET

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04.23

CONTENTS

06 ONLINE

Community impact stories 08 EDITOR’S LETTER

Drawing from Experience 10 BY THE NUMBERS

Breaking down oil changes by type

QUICK HITS 36 INDUSTRY INSIGHT

The youngest Worldclass tech 12 AROUND THE INDUSTRY

Right to Repair gets boost in Mass.

16 SHOP LOOK

Xpress Auto Care of Baldwinsville, N.Y.

SERVICE 32 PIT STOP

Turn around under-performers 33 SALES+MARKETING

Maintain your good name 38 CASE STUDY

20 LEAD STORY

Becoming No. 1

Quick maintenance business owners talk about how they developed the skills to be the go-to entrepreneur and leader.

BY HANNA BUBSER

26 PROFILE

Kirk Umphrey’s Rise to Prominence

Quality Care John Romeo’s newest Xpress Auto Care location is thoughtfully designed with the comfort of customers and staff in mind.

Prepping for that expansion push 40 ADAPT

Women In Auto Care event tackles emerging technology

COLUMNS 19 FROM THE SHOP

Setting leadership culture at the top

BY A DA M TAT U M

The longtime franchisee talks about his career arc, business trends, and how to succeed in the business.

50 LEADING EDGE

BY CAROL BADAR ACCO PADGET T

BY LENNY SAUCIER

Decision-making time travel

NOLN (USPS PERMIT 23608), (ISSN 1071-1260 PRINT) IS PUBLISHED MONTHLY BY ENDEAVOR BUSINESS MEDIA, LLC. 1233 JANESVILLE AVE., FORT ATKINSON, WI 53538. PERIODICAL POSTAGE PAID AT FORT ATKINSON, WI, AND ADDITIONAL MAILING OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NOLN, PO BOX 3257, NORTHBROOK, IL 60065-3257. SUBSCRIPTIONS: PUBLISHER RESERVES THE RIGHT TO REJECT NON-QUALIFIED SUBSCRIPTIONS. SUBSCRIPTION PRICES: U.S. ($90 PER YEAR). ALL SUBSCRIPTIONS ARE PAYABLE IN U.S. FUNDS. SEND SUBSCRIPTION INQUIRIES TO NOLN, PO BOX 3257, NORTHBROOK, IL 60065-3257. CUSTOMER SERVICE CAN BE REACHED TOLL-FREE AT 877-382-9187 OR AT NATIONALOILLUBENEWS@OMEDA.COM FOR MAGAZINE SUBSCRIPTION ASSISTANCE OR QUESTIONS. PRINTED IN THE USA. COPYRIGHT 2023 ENDEAVOR BUSINESS MEDIA, LLC. ALL RIGHTS RESERVED. NO PART OF THIS PUBLICATION MAY BE REPRODUCED OR TRANSMITTED IN ANY FORM OR BY ANY MEANS, ELECTRONIC OR MECHANICAL, INCLUDING PHOTOCOPIES, RECORDINGS, OR ANY INFORMATION STORAGE OR RETRIEVAL SYSTEM WITHOUT PERMISSION FROM THE PUBLISHER. ENDEAVOR BUSINESS MEDIA, LLC DOES NOT ASSUME AND HEREBY DISCLAIMS ANY LIABILITY TO ANY PERSON OR COMPANY FOR ANY LOSS OR DAMAGE CAUSED BY ERRORS OR OMISSIONS IN THE MATERIAL HEREIN, REGARDLESS OF WHETHER SUCH ERRORS RESULT FROM NEGLIGENCE, ACCIDENT, OR ANY OTHER CAUSE WHATSOEVER. THE VIEWS AND OPINIONS IN THE ARTICLES HEREIN ARE NOT TO BE TAKEN AS OFFICIAL EXPRESSIONS OF THE PUBLISHERS, UNLESS SO STATED. THE PUBLISHERS DO NOT WARRANT EITHER EXPRESSLY OR BY IMPLICATION, THE FACTUAL ACCURACY OF THE ARTICLES HEREIN, NOR DO THEY SO WARRANT ANY VIEWS OR OPINIONS

BY THE AUTHORS OF SAID ARTICLES.

APRIL 2023

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PHOTO BY CANDICE RENEE PHOTOGRAPHY

FE ATURE

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ONLINE

VISIT

NOLN.NET TODAY

PODCAST

THE NOLN PODCAST

TALKING COMMUNITY IMPACT WITH LUCAS OIL CENTER

PHOTO COURTESY OF LUCAS OIL CENTER

For the team at Lucas Oil Center, taking care of their community goes beyond offering an oil change. They are passionate about fundraising and hosting events that make an impact on families, friends, and their employees alike.

To learn more about the efforts put forth at Lucas Oil Center, team members Bill Floyd, April Maxey, and Chris Payne visited The NOLN Podcast. They discussed their strategy, revealed some of their favorite memories, and offered insight to other shop owners looking to pursue similar avenues in this arena.

Head online to check out NOLN’s library of podcast interviews. Hear from quick lube leaders about new strategies, service stories, and innovative operations that push the industry forward.

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

DISCUSSING OSHA COMPLIANCE WITH COLETTE BRUCE NOLN NEWS

OSHA compliance is a vast topic, but it’s important to address in the automotive aftermarket. There is a lot of information out there, and understanding how it relates to your shop can sometimes be an overwhelming task.

For an episode of The NOLN Podcast, Colette Bruce of Team Safety LLC visited the show to discuss OSHA compliance and safety in a quick lube setting.

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

Check out NOLN’s podcasts at noln.net/podcasts.

Sign up at noln.net/subscribe.

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

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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

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

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

NOLN.NET

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ADVERTISERS/PRODUCT INDEX April 2023 American Petroleum Institute (11, 43) AutoCenter Sales (14)_______________________________________ 800.874.5793 Auto Job Central (13) BendPak (8)_________________________________________________ 800.261.7729

EDITORIAL CONTENT DIRECTOR

BG Products (18, 44)

ASSOCIATE EDITOR

Chevron (2, 45, 46)__________________________________________ 866.354.4476

ASSISTANT EDITOR

Corporate Consultants (7)___________________________________ 518.469.0983

CONTRIBUTING WRITERS

Devon (37)__________________________________________________ 888.500.0353

Matt Hudson

Hanna Bubser

Kacey Frederick

Lenny Saucier, Adam Tatum, Carol Badaracco Padgett, Enid Burns

ISI Software (52)____________________________________________ 800.922.3099

EDITORIAL ADVISORY BOARD

Kafko International Ltd. Oil Eater/Degreaser (15)

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

Mighty Distributing (42, 47) Milton Industries (35)_______________________________________ 800.231.1525 RelaDyne (4)________________________________________________ 317.696.3009

SALES

Roth Industries (35)_________________________________________ 888.266.7684

VP AND PUBLISHER

Chris Messer, cmesser@endeavorb2b.com ASSOCIATE PUBLISHER

Royal Purple (9, 48)

MARKETING STRATEGISTS

SKF/Lincoln Industrial (13)

Andrew Johnson, ajohnson@endeavorb2b.com Marianne Dyal, mdyal@endeavorb2b.com Chad Hjellming, chjellming@endeavorb2b.com Bob Marinez, bmarinez@endeavorb2b.com Martha Severson, mseverson@endeavorb2b.com Kyle Shaw, kshaw@endeavorb2b.com Dan Thornton, dthornton@endeavorb2b.com Sean Thornton, sthornton@endeavorb2b.com

Solid Start (3, 49)___________________________________________ 877.290.3950 Valvoline (51)_______________________________________________ 859.357.7303

ASSOCIATE MARKETING STRATEGIST

Kenzie Verschoor, kverschoor@endeavorb2b.com CLIENT SERVICE SPECIALIST

Jen George, jgeorge@endeavorb2b.com

ART AND PRODUCTION SENIOR ART DIRECTOR

Jonathan Ricketts ART DIRECTOR

Emme Osmonson PRODUCTION MANAGER

Mariah Struab

HOW TO REACH US

571 Snelling Avenue North, St. Paul, MN 55104 tel 651.224.6207 fax 651.224.6212 web endeavorbusinessmedia.com The annual subscription rate is $90 (U.S.A. only) for companies not qualified to receive complimentary copies of NOLN. 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 Endeavor Business Media, and Endeavor Business Media does not accept responsibility for advertising content.

APRIL 2023

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EDIT LETTER

DRAWING FROM EXPERIENCE

Leadership is a full-time job with a lifelong learning curve

I READ THROUGH SOME OLD NEWS

clippings about the 1998 merger between Pennzoil and Quaker State. It was certainly one of the bigger deals to take place in this industry, bringing together the first-and-second-place motor oil names in the U.S. market.

With it came the merger of the affiliated quick lube networks, Jiffy Lube and Q Lube.

It was a bit of a shock for these two main competitors in the growing quick maintenance

space join forces. Kirk Umphrey, who was president at Q Lubes, described the merger as a “tough pill to swallow.”

That bit of insight from Umphrey comes from this month’s profile (page 26), which includes that tidbit and other great insights from his decades of experience in the business. While the Quaker State-Pennzoil merger might have been a logistical challenge, Umphrey stepped up to help ease the transition and set up his future in the Jiffy Lube system. Today, he runs more than 60 locations from his Utah headquarters.

It’s a pleasure to have the perspective of someone like Umphrey in the pages of NOLN. He’s one of those business leaders who clearly takes a thoughtful approach to his role. In his profile story, Umphrey speaks on a range of topics, like growing his business on the Jiffy Lube side, adding a Mighty franchise, and becoming a well-rounded business owner.

Each issue of NOLN strives to be a

business leadership manual of sorts, but this month is a standout, if I do say so myself.

This month’s feature story (page 20) approached the leadership origin story directly. Associate Editor Hanna Bubser interviewed two successful operators about how they built and adapted their skills to manage the people and processes that are foundational to their organizations.

There is a quote in the feature story that stuck with me. It’s from Russ Hotchkiss, a shop operator in Iowa. You can read the context around the quote later in this issue, but I’ll leave you with it here: “The grass isn’t greener on the other side.

Why don’t you water your own lawn?”

MATT HUDSON

CONTENT DIRECTOR, NOLN

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The 2022 NOLN Operator Survey

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Consistent oil changes keep a shop running smoothly. But what happens when car counts are lackluster? Search “Car Count Boosters for Quick Service” on noln.net to learn strategies for increasing the customer presence at your shop.

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QH

AROUND THE INDUSTRY

MASSACHUSETTS TO ENFORCE RIGHT TO REPAIR LAW

MPC ACQUIRES 13 BIG O TIRE LOCATIONS

MFA Petroleum Company (MPC), a Big O Tires franchisee, has acquired 13 of the brand’s locations in the Kansas City area, according to a press release.

The stores were purchased from TBC Corporation, a company that owns over 730 auto centers of varying brands.

The stores purchased include five in Kansas–MPC’s first in the state–and eight in Missouri. Prior to the acquisition, MPC operated 22 stores across Missouri and Arkansas.

With the addition of the Kansas City area stores, they now operate 35 locations out of Big O Tire’s total of 460, making them the biggest franchisee of the brand.

MPC’s senior director of Big O Tires, Charlie Alexander, stated this is “a major expansion for our company” and helps to

“build the Big O Tires brand throughout the Kansas City area.”

RELADYNE ACQUIRES GRUPO LUCALZA

RelaDyne has announced the acquisition of Grupo Lucalza, a fuel distributor in Latin America, according to a press release.

Grupo Lucalza was founded in 1982 and has over 40 years of experience in offering “lubricants, fuels, filters, batteries, and tire distribution services” in Latin America. The company operates in countries such as “Mexico, Nicaragua, Panama, Dominican Republic, and Guatemala” and employs over 750 people.

Also gained in the acquisition were Lucalza’s subsidiaries, Imporfil and Texpetrol. Imporfil is located in Mexico and offers “lubricants, greases, antifreeze, and filters,” with Texpetrol in Guatemala distributing “bulk fuels for aviation, retail, and industrial sectors.”

Grupo Lucalza CEO Guillermo Méndez said he is thrilled about the acquisition and that it will be “a platform for future growth for our associates, customers, and strategic supply partners.”

GETTY IMAGES

Massachusetts Attorney General Andrea Campbell has decided the state will enforce the Right to Repair law passed by voters more than two years ago, CBS News reports.

A Notice of Intent to Terminate Non-Enforcement Stipulation was filed

by Campbell on March 7, which stated that she has a duty to enforce the law that was passed.

75% of voters voted in favor of the law in 2020, but it was challenged by the Alliance for Automotive Innovation when they filed a suit on November 20, 2020 in an effort to stop it from taking effect.

Since then, enforcement of the law has been delayed. Kia and Subaru have been manufacturing “vehicles without wireless technology” to avoid potentially breaking any future Right to Repair laws.

The Massachusetts Right to Repair Coalition released a statement thanking Campbell for the decision to enforce the law.

“On behalf of all Massachusetts independent repair shops and 4,000 members statewide, we thank Attorney General Campbell for standing with the

voters and their right to get their car fixed wherever they choose as automakers increasingly try to create a monopoly in the car repair market,” the organization said in a press release.

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“Grupo Lucalza’s dominant market position, expansive geographic coverage with a highly efficient distribution network, and strong commitment towards customer service will be leveraged by our RelaDyne Reliability Services industrial team throughout Latin America,” said David Schumacher, chief strategy and operating officer of RelaDyne.

MAINE CERTIFIES RIGHT TO REPAIR BALLOT INITIATIVE

Maine’s Secretary of State has certified the signatures of Maine’s Right to Repair coalition to put an initiative on the ballot this November, according to a press release.

The initiative aims to provide independent repair shops with access to repair and diagnostic information instead of

it only being shared with dealerships, allowing them to understand what to do to service newer vehicles.

Tim Winkeler is president and CEO of VIP Tires & Service, a shop in Auburn, Maine. He signed his name to the initiative because he’s had customers who have come to his store for decades that he doesn’t want to have to see forced somewhere else.

“Automakers are increasingly using technology to try to shut out local independent car repair shops and automotive technicians from repairing the newest models of cars and trucks,” Winkeler stated.

Though a national agreement passed in 2013 made it so that automakers must “provide access to repair and diagnostic codes and information,” the agreement does not cover “the rapidly expanding wireless technologies now installed in virtually all new vehicles.”

Massachusetts, too, has passed a ballot initiative similar to this; until recently, it was on hold due to challenges from auto manufacturers, who spent “more than $25 million” in an effort to stop the initiative from gaining enough support.

GREASE MONKEY PROPERTY SOLD FOR $3M

A single-tenant property that was being leased to Grease Monkey in Monument, Colorado was sold by its original owner to a private real estate investment firm, according to a press release.

The building is located in a busy spot, “at the hard corner, signalized intersection of Colorado State Highway 105 and 2nd Street at 213 W. Highway 105 … just off Interstate 25’s 2nd Street exit, with 73,000 cars per day on Interstate

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AROUND THE INDUSTRY

25.” The facility is also surrounded by other businesses such as 7-Eleven, Starbucks, McDonald’s, Taco Bell, and several others.

For this reason, the building was in high demand. It sold for $3,062,555, which is the highest reported purchase price for a Grease Monkey in the past three years.

The original owner of the building previously operated his own oil change and car wash business out of the 5,309-square-foot building but sold the business to Grease Monkey a few years ago. He retained the real estate and signed a lease with Grease Monkey but decided it was time to sell the property.

The seller reportedly received multiple offers within the first few weeks of putting the property up for sale. Representatives of the seller said that the site had “strong real estate” as well as the

benefit of having a car wash attached to an oil change center.

Monro currently owns over 1,300 tire dealers and repair shops in 32 states across the country. Company President and CEO Mike Broderick believes that the addition of these stores “strengthens our current Car-X Tire and Auto presence in the Quad Cities and the surrounding area.”

Dan Elias was the owner and manager of the five locations that have been serving their communities for over 40 years.

“It wasn’t an easy decision for our family to sell our business, but it was the right time,” Elias said.

MONRO ACQUIRES 5 LOCATIONS IN QUAD CITIES

Monro has announced the acquisition of five new locations across Illinois and Iowa, as reported by Our Quad Cities.

The acquisition includes QC Auto Service, which has four locations: two in Bettendorf, Iowa; one in Davenport, Iowa; and one in Moline, Illinois. The fifth location acquired was one Muscatine Tire and Auto Center in Muscatine, Iowa.

All five of the stores will now be “dual-branded,” brandishing the Car-X Tire & Auto brand alongside theirs. Thirty new employees will also be joining Monro as a result of the acquisition.

DRIVE & SHINE TO OPEN IN FORMER RESTAURANT BUILDING

A new Drive & Shine Car Wash and Oil Change will be opening a new location in a “long-vacant building” in Stevensville, Michigan, 94.9 WSJM reports.

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The building along I-94 at 5000 Red Arrow Highway was previously where a “Former 5 O’Clock Sports Bar and Restaurant” was operated. The restaurant was also called “Win Schuler’s” in prior years.

Drive & Shine is based in Granger, Indiana, and has “about a dozen” locations across northern Indiana and southwestern Michigan. The closest one to their new Stevensville location would be in Niles, Michigan, which Drive & Shine VP of Marketing Sherry Tehrani said the new facility will be modeled after.

Construction on the Stevensville location does not currently have a clear timetable, with Tehrani saying permits for construction are “pending approval,” but hopes to receive the OK “sometime this year.” The existing structure is “overgrown and derelict” and will be demolished to create a new one.

Lincoln Township Building Official Jim

Pfeifer said that the township has not received any plans and that the facility will need a “special use permit.” Pfeifer added he did not expect any problems once the plans are reviewed, however.

PERFORMANCE PLUS ACQUIRES SPARKLE CAR CARE CENTERS

Calder Capital has assisted Performance Plus Quick Oil Change & Car Wash in acquiring Sparkle Car Care Centers in Benton Harbor, Michigan, according to Grand Rapids Business Journal.

Performance Plus was founded in Holland by brothers Kyle and Justin Klingenberg and has its headquarters in Wyoming. The company has close to 50 locations across Michigan.

Performance Plus reached out to

Grand Rapids-based Calder Capital for assistance in “expanding its services in new communities,” according to Calder.

With the completion of this deal, the two companies have worked on three total acquisitions.

“There are strong synergies between the two companies, Kyle Klingenberg said, “which provide new markets for Performance Plus.”

The recently-purchased Sparkle Car Care was founded in 1981 and has three locations in Michigan. Two of the three owners, Bill and Chad Stockwell, are looking into “pursuing other business opportunities.” Their father, and third owner, Carlos Stockwell, will be retiring.

Get more industry news at noln.net

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S H O P LO O K

XPRESS AUTO CARE LOCATION:

BALDWINSVILLE, NEW YORK

STAFF SIZE:

4

NUMBER OF BAYS:

3

SHOP SIZE

APPROX. 3,000 SQUARE FEET (WITH 1,400 SQUARE FEET OF ADDITIONAL SPACE AVAILABLE FOR LEASE)

BY HANNA BUBSER PHOTOS BY PHOTOGRAPHY BY AMY

Xpress Auto Care is an independent operation with four locations in New York.

The Baldwinsville location is the newest, having opened in August 2022.

The land for the shop once contained an old house, two garages and a slaughterhouse from a former cow farm. Xpress Auto Care president John Romeo and his team worked with the city to ensure that everything was properly demolished before they broke ground in December 2021. Despite supply chain shortages and winter season construction, the shop was completed in about 9 months.

“It wasn’t hard, you’ve just got to have the right people around you,” Romeo says.

“Between my attorney, my

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builder, my sign guy and the engineers, I just relied on them to do their job and they were a great asset to me.”

KNOW WHAT MATTERS From the sections of brick adorning the outside of the building to the newness of the interior, Romeo says the architectural components of the shop give it a wow factor.

“It’s very comfortable for the customer,” Romeo says of the waiting room. “It definitely doesn’t look like a quick lube, which is my goal.”

In the shop area, epoxy flooring provides a durable workspace for the team. The building is designed in such a way that keeps everyone supported and productive.

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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

“I always look at things from efficiency and reducing steps for my guys,” Romeo says.

This includes keeping some bulk oil tanks downstairs, having computers at each podium and handheld systems for checking out customers. Additionally, there is a dedicated employee break room that Romeo says has nicer cabinets than his own home.

PLAN AHEAD The building has an additional 1,400 square feet of space attached to it that Romeo is looking forward to getting a tenant into.

He took care of all the planning and zoning needs, including getting the space set up for a drive-thru restaurant. Not only does this addition make the shop stand out, but it also offers an avenue for growth into the future.

“It’s a different concept,” Romeo says. “[It’s] not just the oil change.”

Romeo has been business for himself for 21 years and involved with the industry for 33. He’s proud of his shops and foresees the impact of the Baldwinsville location for years to come.

“We certainly did do things for the long haul,” Romeo says. “It’s probably the nicest commercial building in that town. Not to brag, but it probably is.”

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FROM THE SHOP

c

In the Right Hands IN THIS EDITION, YOU’LL READ ABOUT HOW

ADAM

leadership skills are honed. And as much as we like reading these articles each month, how many of us know how to take what we are reading and put it into action?

I want to show some simple things that we can do to identify those leaders in our organization and how to give them the skills to break them through the walls that hold them from success. If we can all find a way to build in-house leaders, we can make their success, our success.

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

Setting the Tone Everyone inherently has their own leadership style.

So, in order to develop your teams’ skillsets, you must first learn and understand what your own are. There are a few ways that you can determine what these are, including reaching out to a consultant that works specifically with the EOS (entrepreneurial operating system) program. However, it’s important to remember that your leadership style may adjust depending on your role and therefore, your team will as well.

Take the positive points in your leadership style and train these to your managers. If you find that they are not picking up these skills, it may be that you are working counter their leadership style. Great systems have unique personalities, but they generally have one or two driving forces. Identify what yours are and look for these in your leaders.

When you really want to instill a leadership development program in your system, EOS is a really great tool to set you on a path forward. It is not free to start this process of organizational change. However, a quick online search will give you lots of great ideas.

One in particular that you should look at is leadership development strategies by Tony Robbins. It is very similar to EOS ideas; he points out that you must first determine what your leadership style and strengths are to set your path. But his ideas also add to the component that will get your teams to buy in to what you are selling. Building empathy for your leaders and their strengths and patience in the execution of your plan. Don’t make rash moves if someone doesn’t hit the round block, round hole of your puzzle box.

Allow Leaders to Shine So, you have identified your strengths and put together a plan for a system to build your leaders into the mold that you want for success. The next step is to step back and allow your teams to lead. Micromanagement of your system will not give you the answers that you are seeking to find in your program. This will lead to leaders who don’t lead, but simply execute orders. What you want to do is set goals for your teams and follow-up with the teams to give advice, not answers to them. You want to start by deciding where you want to be in five years’ time. Break this apart into smaller section. Decide what you can do in year one to drive you in this direction and then break that down into quarters. These are your goals. As you start firing towards these timelines, don’t be afraid to admit a mistake and change course. No one is perfect and no plan will stay that way either.

So now you have a good idea of your strengths, your leadership style and have a vision for your leadership. You have put together a set of goals to drive your organization to the next level. So what’s next? Well, you want well rounded leaders. People that have skillsets that will allow you to step back and spend more time on building your business, rather than running it. The key to that is to mold the soft skills of your teams. In that nifty EOS system, they can identify which skill sets your leaders need to develop. Invest in your people and they will invest in your goals. Spend some money and send them to skill training seminars or college courses. You will find that the more skilled your team, the more the impact will be on your bottom line at the end of that five years.

These ideas will not be for everyone. You may think that you are either too big or too small an organization to put together this type of change. Even if this is not for you, in totality, there is always something that you can use to make small alterations.

Don’t forget to check out online posts for leadership skills and/or change.

Find your strengths, execute your plan and hone those soft skills and you will set into motion real changes that will have a positive effect.

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LUCAS MOORE

How are leaders developed in your organization?

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Fo llow Fol l o w th th

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he h e LLee ader ader Two industry experts share their approach to developing leadership skills and implementing effective strategies

By Hanna Bubser

Photos By JJ Photography & Alice Heart Photography

e may have only been 3 years old at the time, but Russ Hotchkiss vividly remembers his first lemonade stand.

“I learned at a very early age I could go out and … buy Country Time lemonade for a dollar that would make 50 glasses of lemonade,” Hotchkiss says. “I could sell each of those for a dime. So that would turn a dollar into five, and that bought a lot of Tootsie Pops.”

For Hotchkiss, this memory represents more than just a childhood

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venture. It was the start of something bigger. Fast forward to today and Hotchkiss is the president and CEO of All Tune and Lube Total Car Care based in Cedar Rapids, Iowa. In some ways, that lemonade stand can be seen as the unofficial beginning of his journey as a take-charge leader.

For Victory Lane Quick Oil Change president and CEO Justin Cialella, quick lube leadership took shape thanks in part to a previous career in the insurance field. He learned from other

established leaders at his company and formed strategies that went on to make a lasting impact on Victory Lane, which has 36 franchise locations across seven states nationwide.

“I was able to learn and model a lot of my leadership behaviors after what they taught me and (I) emulated them,” Cialella says.

Hotchkiss and Cialella each spoke with NOLN about their own journeys to leadership and how they keep the momentum going.

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F OL LOW T H E L E A DE R

Start Strong

Hotchkiss and Cialella have both carved their own respective paths to get to where they are today, but something that has benefited both men in their careers has been the presence of strong leaders in their lives.

Hotchkiss got introduced to entrepreneurship early in life, and that introduction went well beyond a lemonade stand. His father had an automotive repair shop when Hotchkiss was growing up, which gave him perspective on running a business in the industry.

“My dad was a mechanic when I was born. I can remember turning the first wrench when I was three in a garage behind our house in Waterloo, Iowa. So, it stemmed from that,” Hotchkiss says.

“I can remember pumping gas, changing tires (and) fixing tires, things like that, before I was even 10.”

Hotchkiss can point to some non-industry related life experiences that set him up for success as well. He excelled in sports throughout high school, acting as captain for several of his teams. He even set a record for 400-meter low hurdles that stood undefeated for 20 years.

Hotchkiss has pursued each new experience with determination. Once he finished high school, he carried that dedication onto becoming a Navy Diver.

After he graduated from the Navy, he had his sights set on his next big adventure.

“I always knew I’d own my own business of something someday,” Hotchkiss says. “I just never knew what that would be until I actually got out of the Navy and got into the real workforce.”

He was able to make that longtime goal a reality when he bought his first company in 2001. Since that time, he has opened two other businesses including All Tune and Lube Total Car Care.

As for Cialella, he traces some of his leadership inspiration back to the career he spent working in insurance.

Before getting into preventative maintenance, he was a self-described “car guy” but he had not directly worked in the industry.

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His insurance career allowed him to witness leadership examples that he took into his own approach with Victory Lane, which he and his wife Lauren purchased in 2014 from the original owners Derrick and Jane Oxender. Cialella says he practices leadership from the bottom up, exactly how it was done at his previous employer.

“Every single executive at my former company... started pretty much at an entry level [and] moved up (and) moved cross-functionally,” Cialella says.

The idea of knowing a business structure from top to bottom stuck with him, as did the approach taken by his former boss. His boss was able to identify the needs of the workplace through his own involvement and integration efforts within the team.

“My boss, who was the president of the claims department, would come into our office and he’d be sitting in a cubicle somewhere,” Cialella says. “He wouldn’t be sitting in an executive suite; he wouldn’t be sitting in an office on the phone. He was sitting in a cubicle out on the floor with all these other representatives.”

Upon observing these strategies, Cialella has applied a similar take to his own leadership at Victory Lane. He takes time to understand how each job and element within the business structure work as cogs in the machine’s overall success.

He doesn’t want to miss any details that he would not be able to see if he stayed in his own silo at the executive level.

“I really tried to figure out what was going on from the very bottom of the organization all the way through because you can’t lead an organization if you don’t understand how it works and what nuances the people that are working for you are dealing with every single day that make their jobs harder or could make it easier,” Cialella says.

Apply the Skills

Transferable skills are valuable in this industry. Hotchkiss and Cialella have both applied their skillsets in effective ways.

Over the course of his professional

career, Hotchkiss has worked within multiple industries. He utilizes what he learned to instill a well-rounded mindset into his All Tune team that keeps the goal of success at the forefront.

“I try to put it in my employee’s hands.

I’ll give them the tools to be successful.

Whether they use them or not is up to them,” Hotchkiss says. “If they don’t use them and they’re not successful, I’m not afraid to say, ‘Hey this just isn’t for you.’”

Hotchkiss looks at his employees as partners because he says they all have the same end goal of providing for themselves and their families. He says by showing them how making the business money makes the employees money in return, they can see the importance of a strong cyclical relationship.

“They have to run each of their positions like it (is) their own

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How would you LEADERHSIP STYLE

How would you describe your leadership style?

Cialella: “I think I’m a pretty pragmatic leader.

Some people would call me intense. I would say it’s more passionate than anything else.”

Hotchkiss: “I want my people to take accountability and responsibility, so I teach them ... I try to use the carrot versus the stick.”

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STRENGTH AND SUCCESS

In your opinion, why is it important to have examples of strong leadership in this industry?

Cialella: “At the end of the day, you can look at it from a purely selfish perspective and say, ‘I want to be successful.’ In some cases, these business owners have invested their life savings into a business being run by 19-to-20-year old's. In order to be successful, you’ve got to influence the people that work for you. You can’t influence them negatively.

That never works.”

Hotchkiss: “Basically, because we’ve got so much competition and the lack of labor. There's such a shortage of mechanics that you’ve got to direct them.

You’ve got to show them how they can be successful and what they need to do to be successful.”

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business,” Hotchkiss says. “Our service advisors, our managers and even our techs get paid a base salary or a percentage of whatever they produce, whichever is greater.”

In this respect, Hotchkiss describes his team members as “profit centers within profit centers” because this structure allows for All Tune employees to have independence over their own success.

“So, if you don’t want to work and you want to fiddle with your thumbs and get paid the base salary … then you do,” Hotchkiss says. “If you want to produce, the more you produce, the more you get paid. The more certifications they have, the more they’ll get paid.”

In addition, this structure promotes follow through. Hotchkiss wants his employees to see the value in sticking with the work and putting in the effort.

“So many people are taught that it's OK to quit, and my dad said to me once you quit, you'll never quit quitting,” Hotchkiss says. “... the grass isn’t greener on the other side. Why don’t you water your own lawn?”

Cialella sees leadership as a continuous learning process. He has taken what he learned along the way and implemented it, but he hasn’t closed the door to improvement. Ensuring that his feet are on the ground at Victory Lane locations allows him to see the full picture.

“It’s a constant game of learning. You can’t learn from our corporate offices here, we learn very little (when we’re) looking through reports and what have you,” Cialella says. “The truth into what’s going on in our business is really in the stores and in our locations.”

Cialella makes a conscious effort to be where the action is, and where he claims the greatest opportunities to learn can be found.

“You will find me more often than not in in stores, under cars changing oil (and) counting inventory...because I’m trying to understand (and I’m) trying to put myself in the shoes of the manager (and) in the shoes of the tech and then I learn from that,” Cialella says.

The transition from the corporate insurance world to the automotive aftermarket was another learning experience for Cialella, but it also served as a test of his transferrable skills. Cialella says one significant change that he noticed was the makeup of the workforce itself.

The automotive industry attracts a younger and more diverse group than he had previously seen in the corporate sector. Cialella says it was important to him that he understood the best way to relate to these employees and how he could best support and manage them.

“We implemented a lot of technology and process improvements here,” Cialella says. “We use an online app to do scheduling so that every employee can have the schedules on their phones, they can make changes, they can request time off (and) they can change their shifts. We found that works a lot better than hanging a paper schedule on the wall like it’s circa 1990.”

Meeting his employees where they are and recognizing their distinct needs has proven to be an effective strategy for Cialella. It allows his business to stay current and keeps his team productive.

“Your presence there, being there (and) being in the business, leading your employees and teaching your employees...being that example is really, in my opinion, one of the keys to success,” Cialella says.

Aim for More

A crucial component of leadership is the ability to remain flexible. The automotive world has been in a near constant state of change throughout recent years, and that is not slowing down anytime soon. Keeping things status quo may not cut it, and leaders need to be able to persevere despite any challenges or changes they may face.

Hotchkiss is no stranger to this kind of attitude. He points to one memory from his life that involved a game of high school football that resulted in him changing his perspective. Hotchkiss says he had played the best game of his life. Despite his

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team’s efforts, they lost the game. He was emotional and exhausted, but the support of his mother made all the difference.

“Her only words out of her mouth were ‘You can do anything you put your mind to,’” Hotchkiss says. “That’s all she said, and then she hugged me.”

The memory sticks with Hotchkiss and serves as a reminder to never give up. His mother, who has sadly died since the time of that conversation, offered him words of encouragement that still influence him to this day.

It’s an approach that he tries to take when parenting his own young son, and he sees its impact in a professional environment as well. Overall, Hotchkiss believes that all leaders can benefit from this idea of continuous improvement.

“They’ve got to work on themselves,” Hotchkiss says. “They think

because they’re the boss, that’s the way it has to be or should be. But they don’t work on themselves.”

Hotchkiss says doing this type of internal reflection can offer insight into the elements of a leadership approach that may need work.

“If they can’t look at themselves in the mirror and see the faults, then they’re in trouble,” Hotchkiss says.

In a similar vein, Cialella says taking inventory of an organization’s structure by looking at it objectively is a surefire way to identify any outstanding needs.

Staying in line with Cialella’s previous description of leadership as a constant game of keeping oneself educated, seeking out the changes that need to be made—instead of shying away from them —becomes a key step toward learning and growing.

“You have to sometimes take a step back and look at your look at your organization, whether it's your shop or your company or whatever,” Cialella says.

“You need to have that perspective [to] almost look from the outside in so that you can see things.”

From Cialella’s perspective, it is about more than being a good leader. It is about continuing with that leadership to effect positive change. Cialella says it will make a significant difference in the long run.

“You hear a lot of people say, ‘You need to set an example.’ I think you need to be the example. You need to live it,” Cialella says. “If you show up to your business and you’re in and out in one hour and then your employees never see you, I will almost guarantee that business is not doing as well as it could be.”

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Kirk Umphre TALKS

Looking back on the big events that shaped a stellar career When you grow up pulling cows out of a river, becoming a successful owner, top franchiser, and industry leader in the quick lube industry isn’t actually such a tough feat.

“One of the things that helped my career the most, overall, was growing up on a farm,” confirms Kirk Umphrey, CEO of Lube Management Corp. in Sandy, Utah. “My uncle had a ranch in Idaho, and I’d spend each summer there, working from the day school let out until it started back up.”

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On the farm, Umphrey’s father and his uncle instilled a rock-solid work ethic into the young muscle car fan—an asset that has served him well to the present day as he looks back over a long and distinguished career.

Professional Snapshot Today, Umphrey owns 63 Jiffy Lube stores, having grown his portfolio from 35 after an initial purchase in May 1999.

In 2007, he took controlling interest in a title company to help facilitate all the real estate acquisitions for his Jiffy Lube and other real estate investments.

Then in 2008, Umphrey purchased what would become the first of his Mighty Auto Parts franchises, its initial location ultimately becoming the highest volume franchise in the chain. Looking to become his own supplier for the Jiffy Lube stores,

BUSINESS

except for the oil, he notes, due to his stores’ contract with Pennzoil. Fast-forward to recent years, however, and he says, “we ended up doing some of the oil too because of the shortage.”

In line with his ability to move where the market leads and to anticipate that movement, Umphrey also opened the first of several successful full-service auto shops in 2012.

“We were turning away too much business in our Jiffy Lube stores, unapproved services we were not allowed to provide, and we knew those customers and wanted to be able to help them,” he says. “So we opened the stores to serve them.”

Not surprisingly, quick lube isn’t the only type of business that Umphrey has excelled at throughout his career. When he started in the business, he was a CPA, a realtor, and a general contractor, as well.

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By Carol Badaracco Padgett Photos By Candice Renee Photography

ey

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Self-Supplied

Kirk Umphrey's 63 Jiffy Lube locations are supported by his Mighty Auto Parts franchise.

What It Takes When asked for the traits a person needs to reach the highest levels of success, Umphrey is modest but blunt.

“You obviously need some level of intelligence to be able to move big things forward. Then, you must be hard-working, dedicated, and willing to put in the time,” he notes. “Another big one: you must be willing to ask for help.”

Help oftentimes comes in the form of people, Umphrey has found over time. “If you’ve got good people, lean on them. In an organization as big as mine I couldn’t do it all even if I wanted. People are the key. I selected good people way back in the day when I acquired the stores.”

To lend perspective, many of the people he took on in 1999 are still with him today.

And three people who are part of that initial group have worked their way into equity positions.

“Picking the right people, working with them and mentoring them, and providing them with a good work environment is key,” he stresses. “Of course you need good pay, but it’s not just that. You need a good environment, to be flexible, and to treat your people with respect.”

Expanding on that thought, the quick lube industry Midas says any business owner’s success ultimately boils down to three chief components: people, customers, and profit, in that order.

Of these, Umphrey notes, “People are really the key, because customers will like you when you have the right people, and then you can’t help but be profitable.”

Acquire Amiably On the topic of acquisition, Umphrey offers this important piece of financial advice: “You make your money on the buy, not the sell. So make sure you don’t overpay for an acquisition.”

Another piece of wisdom has to do with treating people respectfully and

giving them opportunities once an acquisition is made. Looking back to an earlier time in his career, when he was president of Q Lube, he remembers what it felt like to be on the selling end of the business equation during an acquisition.

Prior to 1998, Q Lube and Jiffy Lube were chief rivals—with Jiffy Lube owned

by Pennzoil and Q Lube by Quaker State.

Then, at the corporate level of Quaker State, “in negotiations way above my pay-grade,” Umphrey says, the two competitors merged.

“After the initial shock of learning that our primary competitor was buying us, to find out we were becoming Jiffy Lube was a tough pill to swallow,” he admits. But after several months of due diligence, he says, the transition worked out. He was even able to help Jiffy Lube work through some of the business implications of the merger, helping original employees retain positions, retraining them, and helping them to move forward within the organization.

“In Salt Lake, like many other markets, there were Jiffy Lube and Q Lube franchises together with different owners, so we had to figure out how to deal with that conflict, as well,” Umphrey shares.

Following the business merger, and after having worked at Q Lube for 15 years, Umphrey knew literally everyone.

“When I bought my stores I hand-picked the people I wanted out of Q Lube— operations, accounting, IT, purchasing, development, etc. And that made the transition fairly simple. It certainly helped move a new business forward.”

One of the associates that Umphrey held onto from the Q Lube days was Justin Soha, now vice president of Lube Management Corp., who has worked with and for Umphrey since 1994. Of Umphrey’s personal acquisitions strategy over the years, Soha notes, “He’s always shopping, always patient and looking for good opportunities, and making sure he has the right people and the right team in place. His business grows when it makes

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Change with the Times

Kirk Umphrey was a leader at Quaker State's Q Lube in the '90s and was around for the merger with Jiffy Lube.

sense, not just for adding more stores or looking good on paper.”

Pay It Forward In line with treating others respectfully and helping out wherever possible, Umphrey supports and works with charitable organizations that make a difference in the communities they serve.

One of them is the Boomer Esiason Foundation, a patient advocacy leader for the cystic fibrosis community that offers grants and gives a voice to patients and their families.

“One of my partners played football with Boomer back in the day, when the Bengals went to the Super Bowl (XXIII) and played the San Francisco 49ers,” Umphrey says.

In an effort to help raise money for the foundation, Umphrey and his partners offered their Jiffy Lube customers in the Utah and Oregon markets a free coupon book, valued at $100, one month out of every year. For every coupon the customers used during a specified time period, their names would go into a drawing to attend a Monday night

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football game, now the NFL game of their choice, he notes.

To date, the coupon program has raised just shy of $2 million for the Boomer Esiason Foundation, where Umphrey’s football-playing partner is a member of the board.

Consider the Future Even though Umphrey has a long and successful career behind him, he is still keenly keeping an eye on the road ahead. In the automotive industry, he has learned, one must always be able to change as the industry changes.

“Our industry is on the cusp of huge change if electric vehicles are as successful as some hope,” he notes. And Umphrey thinks they will be—although slowly over time.

“We must learn what we can service and figure out how to do it,” he says of the inevitable electric fleet.

Just 20 years ago, he notes, the industry went through a similar transition when vehicles became heavily computerized. “We figured that out and we’ll do the same thing with EV’s,” he notes.

Cultivate a Work/Life Balance Any words of wisdom gleaned from Umphrey’s vast experience would be incomplete without adding some lessons he learned the hard way. For example, he says his first 15 years in the business took a toll on his personal life because he spent too much time on the road.

“Balance has gotten much easier in the past few years with my children in the business and my three key guys that run the business,” he says. “They’ve stepped up through the mentorship program, and I’m a figurehead at this point.”

Today, he and his second wife enjoy time with their five grown children and six grandchildren. “And three of our kids haven’t started having kids yet,” he says of the growing brood.

In a cabin up above Salt Lake, the whole gang rides snow mobiles, which Umphrey describes as “enjoyable as anything you can do.” Golfing and time on a houseboat at Lake Powell are other pastimes they love.

And today, as always, Umphrey is a fan of muscle cars, collecting his favorites from the 1960s and 1970s.

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INTRODUCING THE

Austin Matney,

2022 Best Young Tech Award winner

20

23

Honoring technicians aged 35 and younger who are moving the service repair industry forward, who excel in their current roles and are passionate about their work.

DEADLINE TO ENTER: JUNE 2, 2023 Prizes

Qualifications

Trip to 2023 AAPEX/SEMA Show in Las Vegas Trip for two to the STX Supplier and Training Expo in Nashville in April 2024

At least 2 years experience in the industry

Tools & Equipment from contest sponsors Award plaque and uniform patch

Techs aged 35 or younger (Must be born after January 1, 1988)

Shown career development, innovation in their role, technical or educational achievement, community service and importance to the shop Techs can be nominated or nominate themselves

VISIT vehicleservicepros.com/2023bestyoungtech FOR MORE INFO OR TO SUBMIT YOUR NOMINATION TODAY! BROUGHT TO YOU BY:

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S

PI T STOP

TURN AROUND AN UNDER-PERFORMER

Turn around under-performing employees to bring your team together and employ a top-notch crew

BY ENID BURNS

ANY BUSINESS WILL LIKELY HAVE AN EMPLOYEE OR TWO WHO IS NOT PERFORMING AT HIS OR

her best. Sometimes the poor performers can even be those at the top – in management positions or above. Regardless of the level the trouble exists on, there are ways to work with employees to turn them into top performers through motivation, feedback, teamwork and training.

When an employee is not performing up to standards, there are steps that should be taken to identify the issues, and work with your team to correct them. In today’s tight job market, it is often necessary to work with staff to make both employee and employer happy, especially when personalities are a good fit. The same strategies can work from the top down.

Consider Hiring for the Right Fit With a job market stretched thin, hiring managers continue to see fewer candidates with the skills required to fill openings. If an applicant is close or can get up to speed, consider evaluating whether he or she is the right fit for the workplace.

“Nobody’s applying,” explains Claudia St. John, president of Affinity HR, an Automotive Oil Change Association (AOCA) endorsed partner that handles recruiting, training, hiring and onboarding throughout the industry.

“We’ll take them and grow them.”

“We tell our clients not to be as tight with their requirements,” St. John tells NOLN. “The talent just isn’t out there. Those that are out there are commanding salaries.”

Behavioral testing and interview questions such as, “Tell me about a time when you …” or “How did you handle a customer complaint …” help the hiring manager get a picture of how the applicant operates, his work style, and whether he can handle difficult situations.

Affinity HR works with interpersonal behavioral assessments to help determine a good fit for employees, and resolve situations.

“A lot of conflict in the office is just different behavioral styles,” says St. John.

A manager might have a different

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behavioral style than an employee, and that can create friction until the two assess personalities and learn to work together. St. John suggests that different personalities and work styles contribute to a type of diversity in the workplace. However, it can take time to successfully blend a workforce with diverse personalities and work styles.

“In those situations you do your best,” explains St. John. “But you need to realize you are part of the community.”

In other words, it could require some “give and take.”

Be Prepared to Coach Your Team Even your top performers may require insight from management to help determine progress and set goals. St. John outlines five responsibilities managers have, and how those five actions help across all employees.

“I try to remind managers they have five responsibilities,” St. John outlines.

Managers should communicate clearly delineated performance expectations; make sure employees have the tools and competencies they need to complete and satisfy expectations; have a process in place to evaluate how employees are doing; and offer feedback that has constructive comments mixed in with positive feedback, St. John outlines.

Approaching Employees about Poor Performance Too often managers approach employees by lecturing, but it often has the opposite of the intended effect, as it can shut down a conversation, explains St. John. “The first place to start is by saying something like, ‘I’m observing … tell me what you’re experiencing …’ That works whether it’s a performance issue, a productivity issue or personal issue.”

The best way to help an employee improve performance is by stating explicit guidelines and expectations. It helps workers know what they need to work on, and how to get there. It also communicates that a manager is willing to work with the employee to bring them up to speed. “It gives them tangible ways they can improve,” St. John explains.

Feedback is Key While St. John offers five key actions managers should take to work with employees, she says feedback is the most important. “Are you giving enough feedback? Not just corrective feedback, but positive feedback,” she says.

While it is helpful to offer some constructive feedback, positive feedback is important. “I think that 85-to-90 percent of feedback should be positive,” St. John states.

If approaching a worker with a compliment is difficult for a manager, she offers an example phrasing. “I observed … and it was great.”

Feedback is free, and offers direction as well as positive reinforcement on a job well done.

“Focusing on positive behaviors the employee is bringing to the office, and also giving them tangible ways they can improve,” St. John explains.

“I think the positive feedback should happen every single day. That’s the best management tool we have, and we don’t use it enough.”

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SMART REPUTATION MANAGEMENT

When it’s your good name on the line, take the right steps B Y C A R O L B A D A R A C C O PA D G E T T

YOU ARE SERIOUSLY OUTNUMBERED.

Automotive marketing specialist Hedges and Company reports that in 2023, 243.4 million licensed drivers are projected to be on U.S. roadways.

Among that ocean of drivers, there will naturally be accidents, and not just the ones that happen out on the streets.

So as a quick lube shop owner, be ready and brush up on your reputation management skills.

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“We’ve had instances where, due to an employee’s actions, an oil filter came back leaking, or more serious,” admits Sam Basey, owner of South Coast Xpress Lube and Tire Pros in Bandon, Oregon. In one rare event, an employee’s actions caused transmission damage, he says.

“The first thing you want to do is make sure the customer knows you take responsibility for it,” Basey states.

“Be apologetic, ‘I’m sorry this happened and here’s what we’re going to do,’” he says. “Never deny; never make excuses.”

Basey’s business has an impressive

4.8 rating on Google, so he’s clearly doing something right—something other shop owners can either learn from or relate to.

So NOLN sat down and asked him a few questions.

When operators acquire an existing business, they often acquire the reputation, too. What’s the first assessment you make with the business?

“Then you have to start with fixing the issues, and it takes time,” Basey says.

After addressing the problems that were causing the bad reputation in the first place, and once you’ve gotten the

right people in place, Basey says a shop is set to move forward.

“Then it’s time to live and die by doing a good job,” as he puts it. “And when something happens, take care of it immediately, and be responsible for your employees’ actions.”

How does a shop owner know when they have the right employees in place?

“People are super hard to find these days,” he concedes. So be sure you hold onto the good ones you already have and the others you’ll be fortunate enough to get.

“Everything begins and ends with employees. So once you get them, make sure they’re feeling appreciated,” Basey reminds.

Then, to keep your good people at their best, he says to consider the term “the shadow of management.”

“You have a shadow of leadership whereby people are reflective of what you do,” he stresses. “Lead by example.”

What are some ways a shop owner might handle it if there’s a dispute over a service issue?

There are people in the world who’ll try to take advantage of you. “Try to separate them out and listen to what happened,” Basey suggests through personal experience at his shop.

“We have cameras everywhere— even in the pit—so in instances where someone says you’ve scratched their car or didn’t put in oil, for instance, I can reference my cameras,” Basey says. “And 9 times out of 10 I can see if something did or didn’t happen.”

It then takes good customer service skills to explain to the customer what you have found. “Be empathetic, though, don’t get stubborn,” he stresses.

How can a shop owner handle online reviews, where customers’ remarks can be all over the place and sometimes quite nasty?

Frankly, Basey says he has a policy that may be different from other shop owners.

“My policy is I don’t respond to any of

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DOUBLE-WALL CONTAINMENT For all your automotive oil and lubricant storage needs. it—good, bad, or indifferent,” he states.

“Many people who’ll leave a bad review will come in expecting some kind of reaction,” he says. “If you respond it’s just opening a can of worms. So I don’t respond. But if I do see a good review and then I see them in person, I’ll thank them.”

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How can a shop owner keep the right mindset about customer service and avoid being thrown off-balance?

Basey thinks for a moment then says, “Just be flexible and adaptable, and have an open mind.”

Because whatever the issue is, always keep in mind, “it may be your fault,” Basey reminds.

He adds that Bandon, Oregon, where his shop sits, is a touristy area. “Many of the people who pass through aren’t long-term, so they www.RothLubeTanks.com might say we’re not going fast enough for them. But that’s about it in the area of ‘bad reviews,’” if you can even call them that.

2302NOLN_RothNorthAmerica.indd 1 There’s also a flip side to having those customers who are just passing through, he notes. “We help a lot of travelers too throughout the summer, so they’re not stranded due to tire or automotive issues—and those people leave a ton of good reviews.”

It’s important to remember, too, that there are people who will habitually leave bad reviews of businesses, of course. And shop owners should expect them—they’re a certain brand of customer, Basey finds, and he also believes that Google doesn’t do a very good job of policing them.

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Final Thoughts?

Basey simply laughs. “I learn a lot from experience—and every now and then those lessons are hard and expensive.”

Remember, he says, a shop’s success “begins and ends with its employees.”

And then, some of his best words about reputation management are worth repeating again too: “Live and die by doing a good job.”

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THE NEW GENERATION OF PROFESSIONALS

How an independent shop inspired Nathaniel Dillard to become the youngest ASE-certified technician

BY KACEY FREDERICK

AT 23 YEARS OLD, NATHANIEL

Dillard is a Worldclass certified technician with years of industry experience already under his belt. Though many were pushing Dillard toward going to college out of high school, one local shop owner he worked for saw potential in him.

NOLN spoke with Dillard about his journey in becoming the youngest Worldclass-certified technician and the support he received to get there.

Dillard grew up in Martinsburg, West Virginia, and now works as a research and development contractor at the North American division of Akka Technologies, a European company that offers engineering consulting for the automotive industry.

Develop the Skills Dillard’s first experience with automotive repair was around 9 or 10 years old, when his father enlisted his help with repairing a fuel pump on his vehicle. He said his father needed “tinier

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hands than his,” Dillard remembers.

His interest in working with cars only grew as he matured, and after leaving high school, he immediately pursued the automotive field.

He started as a lube technician at a dealership after finding a job posting, and then went to work at an independent shop. It was there that he met Wallace Parrish: his mentor and owner of ZZ Auto Service Center.

“I impressed him, because I was working in the field I was at 18,” Dillard says.

When he began working for Parrish, Dillard was still unsure how committed he was to further pursuing his career as a technician, with many around him pushing him toward going to college.

It was Parrish that encouraged Dillard to work toward obtaining the ASE certifications that helped get him the job he has now, even going so far as to help fund the test fees.

“He’d seen the potential in me, and told me to keep pushing for greatness,” Dillard recounts.

When he made the decision to pursue Worldclass certification, much of it was material he’d already worked with in real life, but much also required studying and preparation.

He says that he introduced himself “slowly into those subjects” by “studying up and researching.”

“A lot of is hands-on knowledge that you would acquire, but a lot of it is also just understanding the concepts and applying them,” he says.

His advice for others that are pursuing ASE certifications is to seek resources online, especially official ASE practice tests. If someone fails a test, he advises to study more and try again. Dillard says he failed some tests up to four times before passing.

Dillard cites his time at the shop as the most impactful time of his career. Parrish offered him support and confidence, and in spite of all the doubters, Dillard saw a path to carve for himself toward what he always wanted to do.

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Just a few months ago, he stumbled upon a paper from a mock career presentation that he performed at 15.

“I remember one of the questions it asked was, ‘What would you like to do after graduating high school?’ I said that I wanted to be an R and D electrical contractor. … I did end up getting that job, and I think that’s really cool,” he says.

Understand the Opportunity As a research and development contractor, Dillard now encounters many college students interested in the industry through a tech student program at Akka Technologies, and often ends up becoming a mentor for many of them.

The most important piece of career advice he has received, and that he gives to any technician entering the field, is to keep up with emerging technologies. He

remembers how his background in working on computers with his father gave him an advantage when he first started as a lube technician.

“I was able to apply that (background in computers), being the new guy in the shop (and) already having an understanding of electrical systems in cars that are already becoming more and more electrical, versus mechanical,” he says. “And that has allowed me to keep ahead in my field.”

For Dillard, that’s always what his driving motivation to work in the automotive field has been: the opportunity to work with emerging technologies and being on the cutting edge of new products.

“I really enjoy getting to see the product before the rest of the world sees the product,” he says. “I really enjoy problem solving situations that I know for a fact have never occurred in the world before.”

Though Dillard enjoys a fulfilling career today, he confesses that the doubt he faced was one of the hardest parts of getting there, with many around him pushing him to go to college and pursue other paths.

“There’s a lot of negative connotations, even today, when it comes to a skilled labor position,” he says. “We’re starting to understand that not everyone needs to go to college, but there’s still some sort of a negative light shined on you if you haven’t. I think that’s not necessary.”

He’s more than satisfied in the position he holds now, being able to provide for himself while doing what he loves. He says he hopes to continue work in the research and development field for the foreseeable future.

“I think you can have a really good career and a really good life outside of work in this field,” Dillard says.

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YOUR SHOP, TIMES TWO

How to prepare for that first big expansion push

MULTIPLICATION IS SIMPLY THE BASICS when it comes to

arithmetic. But even at its simplest levels, trying to add another store to a business portfolio can be a problem that stumps many shop owners.

So what does it take to successfully grow from one location to two? One owner in Florida, Jason Nastasi, took on the challenge and found a solution that works.

The Backstory Nastasi is a Tampa native whose family has a history in the automotive business. His grandfather owned body shops, and he grew up building cars with his dad.

Coming out of his senior year in college with a business degree, Nastasi

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secured a spot in the first class of interns at Tires Plus.

“I basically came up as a tire changer and worked my way into marketing,” he remembers. Some of his marketing duties for the company included print production, sports marketing, and grass roots marketing.

Eventually, Tires Plus wanted to move Nastasi to Chicago, and that’s when he put his foot on the brake.

“I’m a Florida boy, and that wouldn’t have worked for me,” he states.

The Challenge With his position at Tires Plus in the rearview mirror, Nastasi did a bit of work for Nascar, and then he decided on his next move.

“I like the challenge of running

stores,” he says. “Some friends told me I should talk to Express Oil Change and Tire Engineers corporate, so I wound up flying to Birmingham to meet with Ricky Brooks, the CEO at that time.”

From there, his ownership journey unfolded, and he started the process of getting two stores into operation.

“It took two years between securing loans, and this was all new to me. I had run stores before, but I’d never had to secure financing in that quantity, and I’d never bought commercial real estate,” Nastasi says. He concedes that having the large corporate name behind his franchises definitely helped.

In what he describes as “a whole realm of schooling,” Nastasi got funding for his first store in the city of small, bustling Oldsmar, Florida, on a nice

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corner lot. He cautions others, though, to walk before they run when they’re picking a location for a shop.

“We looked at 40 to 50 sites for each location,” he states, first looking on satellite.

“Then you narrow it down and you go look in person,” he explains.

“And then you have to do traffic and geo-tracking studies (of the real-time physical location of roaming users’ devices), and it all costs money.”

Nastasi also cautions owners not to spend too much money on a location before they know for sure that the site is going to pan out. It’s a lesson he learned the hard way during the process of opening his first store, and “a hard pill to swallow.”

Once his first location was locked in, Nastasi began to realize all the things he didn’t know about the area. “Oldsmar has people coming from Tampa and the Pinellas side, just lots of people going around to different places to work,” he describes.

So he put his boots on the pavement and started making up some ground.

The Solution “I spent eight to nine months before the first store opened just volunteering with the city,” Nastasi says. “So by the time the store opened, everybody knew me.”

Then, just two days after opening the Oldsmar store, Nastasi broke ground on his Tampa location.

With both franchises, the answer to keeping them profitable and high performing is essentially the same, even though each sits in a very different position within the marketplace.

“We look at what draws people into the complex,” Nastasi says, noting that quick lube is a third of his shops’ offerings, auto repair another third, and tires the remaining piece of the pie.

“If people come in and need brakes, for instance, that’s a destination and they drop off their vehicle,” he notes.

On the other hand, quick lube is not a destination; it’s in and out.

Because of the three-part nature of his stores, the services offered must be marketed separately. And Nastasi says he has figured out a recipe that works.

“For marketing, I use Facebook, Twitter, Instagram, and TikTok, which I think of as social, and that’s about 25% of our marketing,” he shares. “Another 50% falls into Google paid search and SEO marketing.

Then I’d say there’s about 20% print mailers that we send directly to the customers, and another 5% that’s guerilla marketing—just being part of your community.”

Being part of a franchise is also an obvious strength for both of his stores in terms of marketing and name recognition.

Still another element of Nastasi’s success is his willingness to roll up his sleeves when necessary.

“I run these two big businesses, but yesterday I was out on one of the properties running postholes,” he states. “As an owner, you must ask yourself, will you run the pit, fix cars, clean the restrooms?”

Personally, he’s willing to go the extra mile. “I’ll turn around from doing a tune up to clean up at a location, and then I’ll run across town and get involved in city government.”

Nastasi also has a solution to help beat the sheer number of automotive service options that his customers have in the saturated Tampa market (which has very little mass transit), and where most people already have a mechanic.

“I say … if you ever have a question, call me,” the dual shop owner states.

“And after about four to six months of being involved with the city and the chamber—even when I didn’t have a business open yet—I’d get calls from people saying, ‘My car’s at the shop and they’re telling me this … what do you think?’”

The Aftermath Looking back after opening both locations, Nastasi reiterates that he’s fortunate to be part of an excellent franchise.

“I have a wife and four very little children,” he notes. “Now I’m getting the benefit, but starting out I had to tell my wife I’d be working 70 hours a week.”

Now, though, he has strong managers at his two stores, and he’s not afraid to say he needs that support.

“The Oldsmar store runs fine and is growing each month like it should,” Nastasi finds. “The Tampa store is in a huge metro market, though, and I’m still learning.”

The Takeaway Nastasi sums it up, “The auto business is definitely a trust business that drives on car count.”

Given that, one of the most important things he believes he has done to position himself for success is to market his own brand alongside that of the franchise.

“Google my name and I’m the first page and a half that comes up,” he notes. “If someone can Google me and see I sit on the board at the Chamber and I’m involved in my church and my community, it makes people feel like they know me.”

He adds, “Promoting the brand of Jason Nastasi also helps people understand why my stores are run differently than others they could choose.”

Another takeaway from his experience is this: don’t try to grow too fast.

“I started the second location when I’d just opened the first, trying to outpace rising costs,” he reminds, and that can be a ton of stress.

Still, growing to two locations is a move Nastasi says he was blessed to make.

“Commit if you’re going to commit,” he concludes. “Many people keep a foot on the ledge, but I had to step off.

Then you’re all in.”

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WOMEN IN AUTO CARE PANEL TACKLES EMERGING TECHNOLOGIES

In February, the Women in Auto Care Leadership Conference held a panel to discuss vehicle tech

BY HANNA BUBSER

The Women in Auto Care Leadership Conference was held Feb. 27 through March 1 in Palm Springs, California. Women in Auto Care is a community of the Auto Care Association. The theme this year for the community’s annual event was “Resilient and EmpowHERed,” and this was exemplified through the conference’s various speakers and their respective sessions.

One such session revolved around the topic of being empowered by information. It was a panel called “Emerging Vehicle Tech: What You Actually Need to Care About.” The panelists were Susan Starnes of NAPA Auto Parts, Meagan Moody of ZF Aftermarket, and Carolyn Coquillette of Luscious Garage (now Earthling Automotive) and Shop-Ware. The panel was moderated

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

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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

by Stacey Miller, vice president of communication for the Auto Care Association.

Although conference attendees came from across the automotive industry, the purpose of the panel was to shed light on aspects of vehicle electrification and ADAS that impact all corners of the industry.

According to data from a slide deck featured alongside the panelists, there are only 20 moving parts in an EV drivetrain versus 200 in a traditional drivetrain, and there are approximately 15,000 total parts in an EV versus 30,000 total parts in an ICE car.

To understand the full impact of these elements and more, all of the panelists agreed that seeking out information and educational opportunities is key.

Understand the Context

As the vice president of emerging markets for NAPA Auto Parts, Starnes works with elements of new vehicle technology. On the panel, she pointed out that you simply don’t know what you don’t know.

“For EVs and ADAS really, it’s about education and understanding,” Starnes said.

Starnes mentioned that at NAPA, their team is working to navigate and get ahead of emerging technology. This includes developing and understanding of what the specific training needs are for these newer vehicles.

Keeping all of the change that’s happening in mind, it was also pointed out on the slide deck that the average age of vehicles on the road these days is 12 years. Moody pointed to another important detail to consider. Moody is the head of customers and strategy, North America, aftermarket, for ZF Group.

“If our cars aren’t failing earlier, then we’re probably going to tend to keep our cars longer,” Moody said.

Moody noted that there will continue to be big pockets of the country, such as California, that will adopt electric vehicles fervently. But the rural areas of the United States will not take on these new vehicles at the same rate and they cannot be overlooked.

Coquillette is the founder of Shop-Ware, which is an automotive shop software. She opened Luscious Garage 16 years ago and started working on hybrid cars before they became more mainstream in the car parc.

As for EVs, she said on the panel that the industry is still in the early days of seeing them break. She said that tires and some undercar services are a couple of examples of EV repairs being conducted.

“Our expectation with EVs is that we’re going to have to be patient and learn more about them,” Coquillette said.

Considering many new electric vehicles are still under warranty, Coquillette said independent shops still have an opportunity for service because people will look for alternative options when they are unhappy with a dealership. She said access to information and parts is important in these repairs and it’s helpful when EV automakers are cooperative with information.

As more change comes with the technology on new vehicles, Coquillette said the aftermarket has the opportunity to step up, lean in, learn more, and provide solutions.

“Self-driving cars aren’t going to be self-fixing cars,” Coquillette said.

Fill the Toolbox

On the topic of fixing, all of the panelists agreed that proper tools are crucial to understanding emerging vehicle technology.

Starnes said on the EV side, this involves a lot of safety tools such as gloves and diagnostics equipment. For ADAS, it’s about the calibrations and making sure you have the right machine for the vehicle in question.

Coquillette said that the kinds of high voltage tools used in hybrid repair could be transferrable to some services being conducted on EVs. Moody mentioned the importance of recognizing the prevalence of things like over-the-air updates that have become more commonplace on newer vehicles.

The panelists also discussed the topic of liability for when things go wrong with repairing technologically advanced vehicles. Starnes said that it may take a few court cases to determine the best courses of action going forward with this complex topic.

Moody said that one roadblock to consider is that there are some A-level shops doing great work with these vehicles, but there are many B-and-C-level shops out there that may not be as up to date on electrification information, which may impact their repair approach.

Coquillette said manufacturers need to make cars that are safe to work on and that, “the car needs to be serviceable, and the car needs to be safe.” She said the burden placed on service providers to conduct safe repairs is not new and it will separate the shops that are able to do it well and those that are not.

“This is not our first rodeo,” Coquillette said.

Overall, Miller listed some of the main takeaways from the panel discussion as investing in training and education, not being intimidated by emerging technologies by investing in tools and equipment and having a willingness to work with retail partners and manufacturers.

Learn more at adaptsummit.com.

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

Over the past year, there has been a request for new gasoline engine and Vehicle Standards,” sets the emissions standards and dates for their oil specifications and progress on the development of PC-12 engine oil introductions with the model year 2027. While the primary focus is on tighter specifications for diesel engines which have kept the API at the forefront of NOx limits, the EPA has also set more stringent standards for pollutants that the industry. In addition, API is also working on industry sustainability which create ozone and particulate matter. involves developing broadly accepted terminology and methodology for An additional important element of this rule is the sustainability of the life cycle analysis of lubricant products. Each of these updates will affect equipment. Aftertreatment equipment will need to have a longer useful life, quick lube and fast maintenance business owners in the next few years. and the engine and aftertreatment will be required to be covered by longer You may find it helpful to make a checklist of items that warranties. As a result, engine manufacturers continue need attention to make this a successful year. Based on to seek improved oil performance to enable more fuel conversations we’ve had with operators, here are some economy and provide better protection to support common priorities: extended durability of the engines and aftertreatment “The development of systems in the applications of the near future.

API PC-12 engine oil New Gasoline Engine Oil Specifications for diesel engines is Last August, the International Lubricants Standardization Lubricants Sustainability moving forward with and Approval Committee (ILSAC) formally requested that As sustainability has become a global focus across all a new gasoline engine oil specification be developed. industries, there is a need for the lubricants industry the request for first The Auto/Oil Advisory Panel (AOAP) began the evaluation to have a clearly defined, consensus-based document licensing date from process of the specification, which is expected to be capturing the broadly accepted terminology and API is no later than called ILSAC GF-7, and which would eventually replace methodology for life cycle analysis of lubricant products.

January 1, 2027.” the current GF-6 specification. The AOAP is currently There is also a need to ensure harmonized practices and evaluating the previously requested category upgrades to reduce individual requirements across global markets.

- API SP Plus, the addition of SAE 0W-8 and 0W-12 Lubricant suppliers are asking for data to substantiate viscosity grades to the ILSAC GF-6B and the request to their own sustainability reporting and objectives. Having develop ILSAC GF-7 oils. a lubricant-focused methodology in place will not only The AOAP is looking at ways to consolidate all three into a cohesive process provide guidance for the lubricant producers but also give their customers that will accomplish the goals of each and ensure an efficient implementation. additional confidence in the data they require.

There are several proposals to modify how GF-7 oils which were originally Seeing this important need, the API Lubricants Group assembled industry requested for first licensing in 2028. Among the options is to develop a GF-7 subject matter experts in June 2021 to define terminology and outline as early as late 2024 or early 2025 which would be followed by GF-8 in 2028. methodology for life cycle assessment of lubricants and specialty products in ILSAC is requesting a new category, GF-7, which will provide EPA fuel the marketplace. API Technical Report 1533 has just passed a consensus ballot economy improvements and lower exhaust emissions. Additionally, GF-7 with the API Lubricants Group and will be published soon. This publication would provide Aged Oil Low-Speed Pre-ignition (LSPI) protection, reduced will help to minimize confusion in the marketplace and enhance customer piston deposits and chain wear, along with a sulfated ash limit for gasoline confidence in product benefit claims related to sustainability particulate filter (GPF) protection.

Of Note Development of PC-12 for Diesel Engine Oil Finally, API 1560 - Lubricant Service Designations for Automotive Manual The development of API PC-12 engine oil for diesel engines is moving Transmissions, Manual Transaxles, and Axles has an update in progress. It forward with the request for first licensing date from API is no later than describes API gear lubricant service designations and assists manufacturers January 1, 2027. Parameters for the specification are taking shape following and users of automotive equipment in the selection of transmission and axle the announcement of the NOx final rule by the EPA in December 2022. The lubricants for a variety of operating conditions. The ninth edition will be “Control of Air Pollution from New Motor Vehicles: Heavy-Duty Engine published after reaffirmation is complete.

APRIL 2023

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Good Leaders Get More Sales

BY MIKE BAUER, BG LEAD BGU INSTRUCTOR AND SALES FIELD TRAINER US & CANADA

Recently, I was visiting a shop to do some training and found I had stepped into major chaos! No process, no direction, and no accountability! Why, you ask? When I began asking questions, I found one manager had to check with another, who had to check with another! Too many cooks in the kitchen, without all the ingredients… and they were absolutely lost. Where’s the leadership?

Without it, you end up with a very bad, negative atmosphere.

Most would think that management must be the appointed leader.

There is truth in that, but it’s not absolute as there can be many different leaders other than the given hierarchy. While they are the ones that should steer the ship, a good leader is simply one that others will trust and follow. A good leader is flexible and can adapt when necessary. A good leader has good communication skills and listens!

Implement a Process I’m a very process-driven leader, which I believe helped me to be successful as a Fixed Operations Director, and I had amazing mentors that guided me along the way. As a young service manager, I felt I had to do it all. Just like most leaders, I learned a lot the hard way. I guess you could say I had control issues. If it wasn’t done exactly the way I wanted, I would just do it myself. I realized later that this was not good leadership.

Delegate Leadership One of my mentors suggested I delegate leadership.

Delegate leadership? My mentor explained to me it was important to appoint someone to help carry out my vision. It was much easier to communicate my plan to one individual rather than the whole shop 44

Picking the right person is critical. There’s always that one in the shop who’s got everybody’s ear. The “natural leader.” The goal is to get them to share in the vision by empowering them to add some creative input, thus owning the vision and being part of the process.

Get the Process to Catch Fire The next step is getting our first follower(s). Although you will educate everyone on the new process, you will want to spend your time working with one or two of your most engaged team members to prove out the process.

Have the leader and the first follower(s) consistently implementing the process, modifying where needed, and delivering results.

But how do we know the others will fall in? Have you ever been out to dinner or a bar and the band is playing but no one’s dancing? Everyone is waiting for someone to start, right? Finally, one couple hits the floor, eventually another couple joins and the next thing you know, the dance floor is packed! It takes a leader and a follower to start the movement.

“It takes a leader and a follower to start the movement.”

—Mike Bauer, BG Lead

BGU Instructor and Sales Field Trainer US & Canada

Great Leadership in Action I took my vehicle into a quick lube the other day and their process was extremely impressive. They waved me in and then I was greeted promptly by the team leader. With one under my car and another under my hood, they did all the checks and were calling them out to the team leader. It was so well choreographed; I was blown away by their teamwork. Each person knew their role and performed it with pride and a great attitude. Kudos to this leader; he empowered each of his team members to own the process and joined them on the dance floor.

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3/21/23 9:23 AM

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Spring is upon us: Have you put plans into action?

BY BILL BEYERLE, AUTOMOTIVE INSTALLED SALES MANAGER, CHEVRON LUBRICANTS ANGI SCHOOLCRAFT, LEAD MARKETING SPECIALIST, CHEVRON LUBRICANTS

The last time we appeared in these pages, we suggested that you take revenue? It pays to be transparent with your team. When they understand some time to reflect on the past year, and how that would help you make what is required to advance the business, they will be more likely to perform. plans for the new year. Well, the new year has come and gone, and it’s time to start executing on those plans if you haven’t already. Spring is usually a busy Review your suppliers: The industry is still beset with supply issues, product season in the quick lube business, and it is upon us. What shortages, and inflationary price hikes. Talk to your better time to start than now suppliers about what they expect to see in the future. Be You may find it helpful to make a checklist of items sure you have back up sources in case a supplier comes that need attention to make this a successful year. Based up short. Get a good idea of which supplier is going to “Be sure you are on conversations we’ve had with operators, here are consistently meet your needs. up to date with some common priorities: the latest OSHA Review safety procedures: Be sure you are up to date requirements and Marketing plans: By now, you should have mapped with the latest OSHA requirements and that you have the necessary safety equipment and supplies. Review with out a plan for the year. What has worked well in the that you have the your team the protocols and procedures to follow in the past? Are there any new ideas you want to try? Do you necessary safety event someone gets injured on the job. Keeping safety have a budget, and how do you plan to allocate it? If equipment and top of mind is good practice. you haven’t already, it’s not too late to talk to vendors,

hear their ideas, and figure out where you want to focus your efforts. Think about whether your website or social media presence is due for a refresh.

supplies.”

Changes to inventory: Take a look at your product mix and make sure it is up to date with the current trends. The move to synthetic oils continues to accelerate, particularly with newer cars. It may be time to switch out your bulk tanks from older viscosities to newer full synthetics.

Take a look, too, at your ancillary products – are you seeing enough turnover with them, and does your supply match your anticipated demand?

Share your KPIs with your team: In a small to medium-sized business, everyone on the team has a stake in success, and everyone’s contribution makes a difference. Make sure your team is aware of your key performance indicators and how they can help achieve your goals. What are you looking for in terms of car count? What is the revenue and margin per car the business needs to be profitable? What is the average ticket price that will drive that

Engage with your site manager(s): If you have someone who oversees the shop day to day, or if you have more than one location, make sure your managers are in on your planning process. Get their feedback, encourage their input, and get them involved in your decisions.

You may have other items to add to your checklist based on your own experience. The main point is to have a roadmap and be proactive.

Bill Beyerle has been with Chevron Lubricants for more than 25 years and is currently the Automotive Installed Sales Manager. You can reach him at BillBeyerle@chevron.com.

Angi Schoolcraft has been with Chevron Lubricants for more than 19 years and is currently the lead marketing specialist supporting Havoline®,Havoline xpress lube®, Chevron xpress lube® and Techron®. You can reach her at angi.schoolcraft@chevron.com APRIL 2023

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The Supply Chain is Regaining Strength – What Does that Mean for Your Business?

BY BILL BEYERLE, AUTOMOTIVE INSTALLED SALES MANAGER, CHEVRON LUBRICANTS ANGI SCHOOLCRAFT, LEAD MARKETING SPECIALIST, CHEVRON LUBRICANTS

The breakdown of the supply chain was arguably the most severe economic sense to continue carrying a wide variety of brands in your inventory? Do consequence of the COVID-19 pandemic, the root of all the problems that the products that met your short-term needs still fit into your long-term followed. It affected virtually every industrial and retail plans? If not, you may want to start selling through that sector, resulting in product shortages, vacant storefronts part of your inventory and consolidating around the and layoffs. It led to the highest inflation in a generation products you prefer. and instability in the financial markets worldwide.

Reevaluating your product mix also means “Now, we are seeing signs Automotive service shops were especially hard hit. revisiting your vendor relationships. Chances are you that the supply chain may Availability of certain oil products became severely now have a longer list of vendors than you did three have turned the corner. limited, and add-on products made in Asia got stuck in years ago. This is not a time to be burning bridges – News reports from early congested ports. Shop owners had to get very creative, as we have pointed out often, you always need to be juggling suppliers and finding substitutes for the brands prepared for the unexpected, and that means having 2023 say that shipping they knew and trusted – sometimes compromising quality backup suppliers in case this apparent recovery falters. timelines are shrinking, standards while staying within OEM guidelines, and often However, it does make sense to re-prioritize your ports are unclogging, and paying higher prices in the process, simply because vendors based on what each one has to offer. Talk to dockworkers are back on demand outstripped supply. your suppliers and get a good sense of their level of Now, we are seeing signs that the supply chain may have commitment. Identify those that will be able to reliably the job.” turned the corner. News reports from early 2023 say that deliver the quality products you need, and which ones shipping timelines are shrinking, ports are unclogging, you know you can count on in a pinch. and dockworkers are back on the job. Warehouses are T his is also an opportunity to realign your costs filling up. Inflation appears to have stabilized. Most significantly for auto according to volume. With a loosening of supply lines and inflation service shops, the large-scale, brand-name suppliers you relied on historically stabilizing, you may find you are in a stronger negotiating position on are now back to or quickly approaching full production. price. Larger suppliers who are at or near production capacity may be able Meanwhile, we are hearing from independent lube operators that to show a little more flexibility due to their scale. business is picking back up. Customers that may have put off their While we’re not entirely out of the woods, all signs point to a maintenance while their cars sat in their garages are starting to come back healthy restoration of balance on both the demand and the supply for oil changes and inspections. That tracks with some of the key industry side. It’s a far cry from where we were in 2021, and it bodes well for metrics we follow – for example, the number of cars on the road and total the future growth of the business. miles driven is increasing. New car sales are coming back steadily.

In other words, supply and demand appear to be returning to a state Bill Beyerle has been with Chevron Lubricants for more than 25 years and of equilibrium. That is undeniably a good thing. But it means we are in for is currently the Automotive Installed Sales Manager. You can reach him at another business readjustment. Having adjusted to a scarcity of certain BillBeyerle@chevron.com. products and a downturn in business, how do we readjust to a business environment that more closely resembles our pre-pandemic experience?

Angi Schoolcraft has been with Chevron Lubricants for more than 19 years Now is the time to revisit your lubricant product mix. Perhaps you and is currently the lead marketing specialist supporting Havoline®,Havoline began stocking products you had not carried in the past just to keep up xpress lube®, Chevron xpress lube® and Techron®. You can reach her at with customer demand and avoid the risk of running out. Does it make angi.schoolcraft@chevron.com

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Maintenance Intervals Lack of Service Can Lead to a Catastrophic Event

BY LARRY HAMMER, TECHNICAL SERVICES, MIGHTY AUTO PARTS

Neglecting maintenance intervals can result in performance issues and internal engine damage due to sludge deposits restricting the flow of lubricant to vital engine components.

Evidence of lack of maintenance will normally show up in the oil filter and related housing. The filter media will be impacted with sludge deposits. Where applicable, the filter cap will contain the same deposits or sludge. When these conditions are present it is almost certain the same contamination is present in the oil pan, valve covers, cylinder heads and related components, camshaft/camshafts, oil supply and return ports.

While lack of maintenance can result in lubrication issues and worn or broken parts, minute deposits can result in under or over oil pressurization conditions.

Document your observations on the repair order, as it may save your shop from liability. Following the vehicle manufacturer’s recommended maintenance interval can prevent the accumulation of these deposits.

Filtration There is more to an oil filter than the canister size and thread size. The physical size of the filter is not an indication of the efficiency of the filter.

Filters of the same dimension may be constructed with a different filtration media or number of pleats, which affects the efficiency. A smaller size canister can have a higher efficiency rating than a larger one.

The selection of an oil filter for a given Controlling Oil Pressure application varies in relation to the media, Fixed displacement oil pumps contain an internal pressure porosity, surface area, total capacity and required “Follow the vehicle regulating valve, while some applications may have the by-pass valve setting. Filtration efficiency is manufacturer’s valve positioned in the engine block. The purpose of a measure of the percentage of particles of a recommended this valve is to maintain the oil pressure within a given determined size that the filter can capture. The service schedule, oil PSI range determined by the vehicle manufacturer for a capacity is the amount of debris the oil filter specific engine application. The valve is comprised of a can hold before a differential pressure results in viscosity and filtration plunger/ball and a calibrated spring tension. Once the oil the by-pass valve opening, allowing unfiltered requirements for the pressure reaches a determined pressure, the plunger will oil to flow throughout the engine. With today’s application, or the move from its seat against the spring tension, diverting technology, oil filter flow rates result in a highervehicle owner may some of the oil back into the oil pan or the suction side of pressure differential across the filter media, the oil pump, thereby maintaining the desired oil pressure which requires a higher bypass valve setting. encounter some major in relation to changes in engine RPM. Filters that do not meet these specs will result expensive repairs.”

Major pressurization problems occur when the plunger in unfiltered oil flowing through the engine, sticks in the bore in which it travels. Stuck in the closed promoting accelerated engine wear or oil position, an over-pressurization condition will occur, and pressure related symptoms. the evidence usually appears in the form of a distorted filter canister or blown oil filter gasket. Stuck in the open position, a loss of Oil Viscosity oil pressure will occur that can result in engine damage.

While the oil pump is the heart of the engine, the lubricant is the life’s The presence of any minute substance has the potential to stick the blood for the engine. Oil viscosity does make a difference.

pressure regulating valve, resulting in a high or no oil pressure condition.

Variable Displacement/Two Stage Pumps utilize a solenoid in the oil pump controlled by the powertrain control module. The effect of sludge deposits resulting from poor maintenance intervals can lead to a catastrophic event in the engine. When performing a service and sludge deposits are present, research the maintenance interval for the vehicle. Most likely you will determine the condition is due to a poor maintenance schedule.

Modern engines incorporate precise bearing clearances, and they are comprised of special metals. They are equipped with new camshaft technology with variable valve timing, all of which requires special lubricants and filtration efficiency.

Summary: Follow the vehicle manufacturer’s recommended service schedule, oil viscosity and filtration requirements for the application, or the vehicle owner may encounter some major expensive repairs.

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Knowledge Is Power

BY JAY LITSEY, SENIOR CHANNEL MARKETING DIRECTOR, CALUMET SPECIALTY PRODUCTS

Looking for advice on how to increase car counts and make more money? The old adage that “Knowledge is Power” is familiar, but I’d like to add another one today: “Insights Drive Decisions.” What’s the difference?

Insights are what you draw from the knowledge, and power has no value if not used to drive action. Let’s share some recent findings that I’ve collected over last few weeks, which can quickly be turned into actions to help you stay focused on driving new customers, current customer retention, oil changes and overall tickets.

Transition to Electric Vehicle/Used Car Fleet Opportunity Much is written about the advent of an electric vehiclecentered future and the demise of internal combustion engines, a.k.a. your bread and butter. What’s very telling is that the current U.S. “car parc” (otherwise known as registrations) is near 288 million units. The average age of the U.S. fleet is 12.2 years old. That translates to 144 million over 12 years old, plus 144 million younger than that. With two-thirds over five years old and over 75,000 miles, there’s a huge high-mileage vehicle opportunity near 193 million vehicles. Are two-thirds of your oil changes using highmargin high-mileage synthetics? Are you pairing the highmileage oil with a high-mileage fuel-system cleaner for a higher ring “rejuvenation occasion” package? Think how fitting that could be for spring, summer, fall and winter.

That’s four opportunities per year! Does your lubricant supplier offer such consumer offers? If not, find one that does to help share your promotional costs. If data estimates from Kline research prove out, it could take 20 years for half of the current registrations to leave the car parc, so you are in good shape for a while. By then, we’ll also know what you can service and maintain on hybrids and electric vehicles. You’ll have a business to keep, sell or turn over to your family members for years to come.

length has high growth in the 73-month to 84-month loan area. That’s almost seven years to pay-off a vehicle! The average used car loan is now 68 months.

It’s bad for consumers building equity but a good opportunity for you to help them keep those cars going over the entire life cycle. If your lubricant supplier has incentives and consumer promotions for both newer and older vehicles, then take advantage of them. If not, it’s time to shop around!

“Even new car prices are up 7.2% versus last year, per the U.S. Bureau of Labor Statistics.”

New Car Opportunity As Well Consumers, new car dealers and used car dealers lament the cost of used cars these days. Cars at auction are almost double what they were just a few years ago. Even new car prices are up 7.2% versus last year, per the U.S. Bureau of Labor Statistics. Used Car Dealer Magazine recently shared that almost 62 percent of vehicles financed were used. The average used car payment is now $515, up $118 from 2020. Black Book reports that the average amount financed jumped from $21,362 in 2020 to $28,534 in 2022. Loan contract 48

Think Lifetime Value Of Your Customers Black Book says that the lifetime value of a customer to an auto dealership exceeds $50,000. What is the value of that customer to you? The next time you have a moment while eating lunch or having a cup of coffee, do some quick “Jethro math” on the nearest napkin based on retaining an average customer from age 20 to 70 for 50 years of maintenance and service. Take your current average ticket value, and increase it a bit. Do the same thing for your average store visits per year. If you plan on selling more than an oil change each time, try $100 for an average ticket. For visits per year, use three. About $300 a year for 50 years is $15,000 in revenue. If you gross onethird, you keep $5,000 per customer. If you could keep a steady average of 10,000 oil changes each year from 3,300 customers for 50 years, you yield approximately $16,500,000 in potential gross profit. Get really advanced, and plug this information into an Excel sheet. Do some “what ifs” with your assumptions to your heart’s content.

Complete 100% retention is difficult, but ask your lubricant vendor for programs that can help.

The automotive aftermarket for internal combustion vehicles will be healthy for many years, and then healthy again during the final transition to hybrids and 100% battery electric vehicles. If other lubrication products and functional fluids services are not your core today, talk to your lubricant supplier soon about their other product lines and related promotions whether new cars, used cars, internal combustion, hybrid or full-battery electric. Insights drive decisions and lead to action. Embrace the change!

Jay Litsey is the Senior Channel Marketing Director for Calumet Specialty Products, which is the proud owner of the Royal Purple® and Bel-Ray® brands.

He has been in aftermarket sales and marketing for more than 25 years. Jay can be contacted via james.litsey@clmt.com.

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What sets apart the best from the rest?

BY AMBER KOSSAK

Jim Collins, author of the bestsellers Good To Great and Built To Last once said that the two greatest leaders of the last 100 years were Winston Churchill and Steve Jobs. Those familiar with Steve Jobs and the Apple story know that his career was a story with many lessons. One of these was his uncompromising conviction that the customer experience was pre-eminent in importance.

Jobs was an innovator and visionary in the technology sector. This central pillar in his cathedral of ideas even has an acronym now: UX, which stands for User eXperience. For auto service operators, this idea translates directly to the notion of exceptional customer experience.

So, what sets apart the best from the rest? The answer goes back to the fundamental difference between appearance and reality. The objective is not to give the appearance of caring about your customers, it is to actually care about them. When giving the appearance you care your decisions may result in a win/lose however; the concept of win-win means that when your customer wins, you win!

For owners and managers, there are some essential steps which help when trying to add value.

• Hiring right • Onboarding properly • Training well • Building a team, which includes getting the right employees in the right positions.

In short, each element adds value to the final product. What “value add” can you offer your customers? Higher quality oil option, clean restrooms, Wi-Fi, coffee, dog treats, popcorn, AC? In the service industry, it means going above and beyond, exceeding expectations and separating ourselves from the rest.

“What does the phrase “value added” mean?

When applied to the production of goods, it is the adding of value at each stage of its production.”

What about onboarding? Just as we have one opportunity to make a first impression, a new employee’s first days on the job will set a tone for his or her expectations in this new home. It is wise to strategically welcome new employees in a manner that creates an emotional connection that builds loyalty and trust.

Adding Value What does the phrase “value added” mean? When applied to the production of goods, it is the adding of value at each stage of its production. For example, instead of using the cheapest raw materials, a company would select better materials. If a fluid, then better additives and higher quality base stock. If a chair, a higher quality metal alloy or real leather instead of fake. This chair manufacturer might add still further value through personalization, adding a monogram to the design.

We Can All Add Value Thinking in terms of value added service boils down to each person on the team making a commitment of adding value to the customer experience. We can all add value, but do we? Here are just a few ways that we achieve this.

1. Smile and have a positive attitude.

2. Take pride in your work.

3. Be conscientious.

4. Commit to learning new skills.

5. Assume responsibility.

6. Personally, care about the task at hand and customer.

Responsible employees know that when they are careless and make mistakes it has an impact on the entire team. In the era of Yelp one unhappy customer can have a negative ripple effect that hurts the business in real ways.

On the other hand, exceptional customer service also gets rewarded. This is what a typical happy customer sounds like on Yelp: “I have been taking my cars here for years. When you find an honest, professional car care service, you don’t ever give them up.”

Simple things like learning your customers’ and children names helps strengthen bonds. The more kindness and special treatment, the more memorable it will be. Obviously, the real aim is to engage your customers in an authentic way that makes them feel like a real person and not just a number.

The question is, do you care about the customer’s needs? If so then you understand communication is important. We make a living in the automotive service industry and may assume the things we know are common knowledge when they are not. If we can show customers how to take better care of their vehicles and help save them money, it will only reinforce their trust in us as the professional service provider.

So, what sets apart the best from the rest?

Well we all have the option of being a valuable employee and offering value added services but the question is, are we?

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c

LEADING EDGE

Making Time Travel Work Where you’re going, you’ll actually need roads

LENNY

SAUCIER

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

LSAUCIER @FULLSPEEDAUTOMOTIVE.COM

Future,” but I felt Universal would have taken issue. For those of you that don’t know, I am a time travel fan. I couldn’t say that I would go to either the past or the future. The future sounds exciting, sure, but according to my school transcript in History, the past would be just as surprising. The big question is, what can Doc and Marty do with that information once they have it?

It’s not like you can alter the past because you don’t want something to happen. I subscribe to the Time Machine theory that the past would have had to happen in order to travel back in time to try and fix it. It can be an eye crosser for sure.

What if you knew what your future would be?

Would it help you in your decisions for the present?

It’s not like Sarah Conner can stop Judgment Day. Let me rephrase the question. If you could see the future, would it drive your path in the present? Call it predictions; call it manifesting. But the saying, “if you don’t know where you have been, you can’t know you are going” is equally important to your future as, “if you don’t know where you are going, how will you know when you get there?” To utilize your future you must visualize, plan backwards, and identify conflicts.

Seeing Through Time The vision in your mind of where you want to be is your time machine. Traveling at 88 miles per hour, you transcend into another time and place. Everything you see, hear, and feel is happening as real as the things in the present. I have written many times about the day I was told I would die of cancer. The path in the woods I traveled to, and the porch overseeing the mountain I viewed in the crisp altitude while I sipped my coffee. I could smell the coffee, feel the warm smoke rising from the cup and hear the nature that surrounded me. I knew that was real so I couldn’t die that weekend. You may be thinking about your retirement, the big salary or the title.

What if you could do it? Great Scotts!

So now you know your destiny. You have seen it.

Many people would start with the simple question: “Where do I start?” You should actually start with ideas of what it is like to be there. The details in your vision will give you the answers. From there, you

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work backwards to the beginning of your path. Each step identifying landmarks of where you are and how did it happen. You are now sitting behind the desk as president of your brand. The way you dress, the car you drive, and the people you talk to are all there because you put them there.

What made you get there? Perhaps your nice car came from your move to VP. How did you get to VP, and what moves did you have to get there? Each step backwards from the end gives you distinguishable goals you can identify to understand how you got to the end. All you have to do is map them out. Take the time to write out each step as a goal.

“A goal without a plan is just a wish.”

- Antoine de Saint-Exupéry

It goes without saying that no path is filled only with sunshine and rainbows. You must expect challenges and conflicts. If you were actually ready for your dreams, you would have them already. Swallow your pride, deflate your chest, and realize that you need to work on the things that have you here instead of being there. This could be internal struggles, external competition, geography, education, experience. The goals determine the conflict and the understanding and willingness to take on those conflicts determines your ability to get to the next goals.

Under each milestone, write out what it looks like and what you need to overcome to get there.

The Doc did have it wrong. Where you are going, you do need roads. Yes, I am speaking metaphorically. The most important thing to realize in creating your path is it absolutely will not be a straight path.

Roads have curves, loops, forks and sometimes dead ends. Put me on an old country road filled with views over a straight city road any day. Your destination is only as rich and rewarding as the path you take.

Enjoy the detours through the small towns, learn from the locals, and take time to watch the sunset.

Take it all in, as you go back to the future.

COURTESY LENNY SUACIER

I WANTED TO CALL THIS ARTICLE “BACK TO THE

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