Jobber News June 2015

Jobber News Auto-Camping Takes Euro-Tech Expo Trade Show On the Road • Bestbuy Announces Paste Auto Parts Expansion MAGAZINE

JUNE

2015

Serving the Automotive Aftermarket Since 1931

Market Tracker: Cabin Air Filters Market Recovery, Health Concerns Fuel CAF Growth CounterTalk: Complying With WHMIS 2015 SHOW PREVIEW: NACE | CARS 2015 Expo and Conference

12

th Annual Retail Intelligence Issue

Diversifying For Sales And Profit It’s All About the Customer Experience Plus 40 Top Retail Tips For Brakes, Exhaust, Motor Oil & Filter And Tune-ups

Visit AutoServiceWorld.com

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The content of this publication is not legally binding and is provided as information only. The trademarks displayed in this publication are the property of Continental AG and/or its affiliates. Copyright Š 2015 ContiTech AG. All rights reserved. For complete information go to: www.contitech.de/discl_en

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This Month

Contents

June 2015

Vol. 83,

No. 6

16 Cover

12th Annual Retail Intelligence Issue Diversifying For Sales And Profit:

It’s All About the Customer Experience In a bid to add sales volume and margin to their sales, many auto parts jobbers have begun to experiment with diversifying into other channels to increase their bottom line, with varying results. The most common channels that jobbers are venturing into include hardware, industrial, marine, and performance.

4 Over the Counter

Auto-Camping Takes Euro-Tech Expo Trade Show On the Road; Bestbuy Announces Paste Auto Parts Expansion; Tony Canade Elected Chair At AIA’s 73rd Annual Meeting; NAPA Canada Acquires Young Automotive Professionals; NGK Spark Plug Company to Acquire Wells Vehicle Electronics Business; Dayco Announces Scholarship Recipients; Spectrum Brands To Acquire Armored AutoGroup For $1.4 Billion; BBB Industries Acquires Atsco Remanufacturing Inc.

10 Market Tracker: Cabin Air Filters

Market Recovery, Health Concerns Fuel CAF Growth Growing health concerns by consumers, along with a steady recovery of the automotive market and increasing OEM installation rates of cabin air filters, have combined to push up aftermarket sales in terms of unit shipments.

NACE | CARS 2015 Expo and Conference Cobo Center, Detroit, Michigan July 21 – 25th Now in its 33rd year, NACE | CARS 2015 features numerous opportunities for technical training, business education, demonstrations, networking, and technology showcases for stakeholders, owners, managers, and technicians in the collision and service repair industries.

Complying With WHMIS 2015 Employees in the automotive aftermarket industry work with chemicals and materials that can affect their health and safety. https://www.facebook.com/pages/ AutoServiceWorldcom/244916465611841

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Brake Sales Tips

When it comes to brake components, there are plenty of options at all levels.

20 Exhaust System Sales Tips

The exhaust market has seen a resurgence of sorts over the past few seasons, with the reintroduction and continued expansion of muscle car models.

22 Motor Oil and Filter Sales Tips

12 SHOW PREVIEW

26

Top Retail Tips

Motor oil and oil filters are the lifeblood of the aftermarket, because they play such a critical role in basic regular maintenance. With the variety of items available on the market today, selling in this category can be challenging.

24 Tune-up Sales Tips

The term “Engine Performance Maintenance” is probably a more accurate term to use when talking to customers.

30 COMMENT

BOARDROOM, NOT SHOWROOM, FAILURES COST TARGET

Twitter: Andrew Ross (@JobberNews)

www.autoserviceworld.com.

Departments Appointments............................................................ 8 JOBBER NEWS / JUNE 2015

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Cardone Receives Awards Cardone Industries, Inc., was honoured with a “Best in Class” President’s Award for Electronic Data Excellence by Advance Auto Parts at the 2015 NCMA Conference in Orlando, Florida, and also received the Silver President’s Award for its online catalogue at cardone.com.

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Tenneco Monroe Ride & Drive Program Continues Tenneco’s Monroe Ride & Drive program, an extensive undercar training and business growth program now in its 14th year, is projected to attract nearly 10,000 attendees to its 47-event tour this year. The renowned training program provides industry professionals with an extensive undercar education that increases confidence in the inspection and replacement of ride control components.

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Auto-Camping Takes Euro-Tech Expo Trade Show On The Road Auto-Camping’s third Euro-Tech Expo, held on April 28 at the Toronto Congress Centre, brought over 40 of its main European suppliers closer to their customers.

The trade show was geared towards AutoCamping’s specialty Euro shop customers and general repair shops that also work on European cars. This was a great opportunity for manufacturers and close to 500 installers, jobbers, and industry professionals to interact directly and to learn more about each other.

“This was our first event of this type in the GTA and we were thrilled with the turn-out, both from customers and our vendors alike.

We are already in the planning stages, not only for a repeat in the GTA, we are also considering other major centres across Canada,” said Michael Joel, vice president of Sales and Customer Service, Auto-Camping Ltd. Visitors enjoyed the Bosch virtual reality 3D experience that put them inside of an engine compartment. Total had the original 2013 F1 Red Bull Racing car at its booth which attracted a great deal of attention from attendees.

A “time machine” in the form of a VW

Bestbuy Announces Paste Auto Parts Expansion

Bestbuy Distributors Limited has announced a new, third location for shareholder Paste Auto Parts in Toronto.

Paste Auto Parts recently purchased All Serve Auto Parts, a successful 25-year-old jobber operation located in Etobicoke, Ont. Jacob Yako, owner of Paste Auto Parts, plans to keep running All Serve Auto Parts under the same name and location, but with a larger scope of inventory. The Paste network expansion enables Yako and his teams to better service all of their customers.

Paste Auto Parts now has two Toronto locations, as well as the All Serve Auto Parts operation in Etobicoke.

Tony Canade Elected Chair At AIA’s 73rd Annual Meeting

On April 29, more than 100 members attended the Automotive Industries Association of Canada’s 73rd Annual General Meeting at the Hilton Meadowvale Hotel & Conference Centre in Mississauga, Ontario.

Following the appointment of the new auditors and a review of AIA and Board activities, John MacDonald, chair of the nominating committee, presented the slate of individuals for appointment to the Board of Directors in accordance with AIA’s by-laws.

AIA Canada announced that Tony Canade from Assured Automotive was elected as Chair of the Association’s Board of Directors for 2015-2016. The members who attended the 2015 Annual General Meeting of the association, as well as those who submitted a vote via

Camping Bus tent displayed the history of Auto-Camping Ltd. and showed its transformation from a camping accessory business for Volkswagens to the largest privately owned European replacement parts specialist in Canada.

A variety of training courses covering technical and shop management topics were offered throughout the day. A generous dinner and great raffle prizes, including tickets to the Montreal Formula 1 race and access to the Ferrari booth, rounded out the Expo program. proxy, also unanimously elected Dave Fifield from Wakefield Canada as Second Vice-Chair of the Board.

At the meeting, the following four new directors were elected to AIA’s Board: • Annie Hotte, Uni-Select Inc. • Eric Knogler, Sutherland Automotive • Paula Sayers, Canadian Tire Corporation • Stuart Suls, Mr. Lube Canada Following the presentation, Tony Canade addressed the membership and outlined the goals and objectives he has set for his new term.

AIA Canada also congratulated its new Chair and all its new directors, and thanked Mark Reed, Shell Lubricants; Gary O’Connor, Uni-Select Inc.; and JoAnn McKeown, formerly of Osram Sylvania Ltd., for their dedication to the Board and to the membership throughout their terms.

NAPA Canada Acquires Young Automotive Professionals

NAPA Canada has announced that it acquired the Young Automotive Professionals auto parts business in Port Colborne, Ont., on May 4, 2015.

Originally founded in 1966 by the Young brothers of Port Colborne, Young Automotive Professionals was incorporated in 1985 and is one of the Niagara Region’s most respected suppliers of automotive parts.

According to NAPA Ontario regional vicepresident Robert Duncan, “Young’s has a great reputation with automotive service providers along the shores of Lake Erie and in surrounding communities. We expect that adding JOBBER NEWS / JUNE 2015

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AAPEX Unveils New Website AAPEX invites all attendees and exhibitors to use its new website (http://www.aapexshow. com) to register for the global automotive aftermarket event, reserve discounted hotel rooms, and stay informed with the latest AAPEX news and updates.

Follow us on Twitter.

Get AutoServiceWorld.com News and more by following JobberNews on Twitter.

NAPA’s many advantages and solutions will help expand growth in the areas serviced and provide new and needed business solutions to the current customer base.”

“Having one of the Niagara Region’s largest in-house parts inventory and providing rapid delivery were only part of Young’s success,” states NAPA general manager Tom Mondoux.

“Young’s staff are the real key, and they have earned a reputation for their knowledge and top-notch service. We are very pleased that the staff will be staying on with us and look forward to introducing them and their clients to the global strengths and business solutions that are available exclusively to members of the NAPA family.”

and is working to increase its sales outside of the U.S. “Both parties’ goals are well aligned,” continued the statement. “We believe that the combination of the two will create significant synergies, including offering Wells products, in addition to our products, to the global repair market through our strong international sales network that we have built over many years.

This combination will further strengthen our automotive components business, and also will keep challenging the company to create new businesses.”

The acquisition is slated to close July 1, 2015.

NGK Spark Plug Company to Acquire Wells Vehicle Electronics Business

Dayco Announces Scholarship Recipients

In a US$257 million deal, NGK Spark Plug Co., Ltd., has announced the acquisition of Wells Vehicle Electronics from UCI Holdings Corp.

NGK is a leading supplier of spark plugs, wires, and oxygen sensors to the automotive market. Wells is a leading supplier of components such as switches, ignition coils, and pressure sensors mainly to the automotive aftermarket.

A statement from NGK says, “In order to further strengthen the automotive components business, we have been pursuing various opportunities, including expanding both the product line-up and improving our penetration in various distribution channels.

“Wells is an ideal candidate for our expansion efforts and is a well-known automotive parts manufacturer with more than 100 years of history in the United States. Wells has exposure to the growing segment of vehicle electronics with broad product lines, whose main products include switches, ignition coils, and pressure sensors. Wells has built a leading position in the U.S. automotive repair market

Jobber News FOUNDED 1931

Jobber News is Canada’s longestestablished publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops and national accounts.

Subscription rates*: Canada $49.95 + HST + Applicable Taxes per year; $79.95 + HST + Applicable Taxes for 2 years; Single Copy Price $6.00 + $0.78 + Applicable Taxes. U.S.A. & Foreign: $62.95 U.S. per year; Single Copy Price $8.00 U.S. * Yearly rates include Annual Marketing Guide (single copy price $72.95 plus $5.00 shipping plus HST)(U.S. orders payable in U.S. funds). Ontario residents add 13% HST. U.S. & Foreign $77.95 +$5.00 Shipping US Funds.

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Managing Director, Automotive Division Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca Editor and Publisher Andrew Ross (416) 510-6763 E-Mail: aross@jobbernews.com Managing Editor Steve Pawlett (416) 510-6839 E-Mail: spawlett@jobbernews.com Contributing Editor Emeritus Bob Blans Contributing Editor Martha Uniacke Breen Contributing Writers Mark Borkowski, John G. Smith Nate Hendley Circulation Manager Selina Rahaman (416) 442-5600 ext 3528 E-Mail: srahaman@annexnewcom.ca Customer Service Roshni Thava (416) 442-5600 ext 3555 Art Director Ron Taylor Production Manager Steven K Hofmann (416) 510-6757 Print Production Manager Phyllis Wright

The Global Automotive Aftermarket Symposium Scholarship Fund has announced the two recipients of $1,000 scholarships provided by funding from Dayco.

Dayco established its scholarships through the GAAS Scholarships in memory of its late president, Don Bethune, and Gerald Bugenhagen, its former North Eastern regional sales manager, both of whom died in 2012.

Wesley Wilson of Loveland, Colo., who plans to attend Front Range Community College’s automotive technology program, is the recipient of the 2015 Don Bethune Memorial Scholarship. James Winkles of Pine Mountain, Ga., who plans to attend Southern Polytechnic State University’s mechanical engineering technology program, is the 2015 Gerald Bugenhagen Memorial Scholarship recipient.

“These scholarships are a fitting tribute to Don and Gerald and a memorial to their contributions to the automotive aftermarket,” says Ed Rammel, president, Dayco North American and Australian Aftermarket. “We are pleased to help these two deserving candi-

Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent.

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JOBBER NEWS / JUNE 2015

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NEW! TECHSPAN WAREHOUSE IN WESTERN CANADA! Techspan to Open New Facility in Vancouver, BC Techspan Industries announces that they will be setting up a warehousing facility in Western Canada. “Techspan is committed to supporting the ongoing growth of our distributor customers in the West”, said Frank Dunnigan, President/CEO. “Speed-to-market with next day

Wire, Cable & Electrical Accessories

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We are excited to deliver this standard to Western Canada”. He continued, “While some manufacturers are shrinking their Canadian based service, Techspan continues to invest in Canadian facilities and employment”.

This new facility will inventory over 8000 SKUs of Automotive, Electrical & Industrial products.

In keeping with Techspan’s commitment to service, many hard-to-get C and D items will also be stocked. The facility is expected to be fully operational by the end of October, 2015.

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dates pursue their education and their aftermarket careers.”

For more information on the GAAS scholarship program, please visit www.

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The tradition continues...

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From it’s beginnings in Germany over 130 years ago, FAG has been a leader in the roller bearing industry.

Friedrich Fischer invented the steel ball grinding machine in 1883, paving the way for the modern ball bearing. His company, Fischer AG, known today as FAG, continues to build on his tradition.

When you install FAG products, you get OE quality and more than 130 years of tradition and manufacturing excellence. www.Schaeffler-Aftermarket.us Blue Seal of Excellence RECOGNIZED BUSINESS

Spectrum Brands To Acquire Armored AutoGroup For $1.4 Billion

Spectrum Brands Holdings, Inc., has announced it has signed a definitive merger agreement to acquire Armored AutoGroup Parent Inc. from Avista Capital Partners for $1.4 billion in cash and assumed debt.

Armored AutoGroup is a consumer products company consisting primarily of the renowned Armor All and STP brands, two of the most recognizable brands in the automotive aftermarket appearance products and performance chemicals/additives categories, and the market-leading A/C Pro brand in the do-it-yourself automotive air conditioner recharge category.

Armor All has the number-one U.S. market share in the appearance products category with its line of protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners, and washes. A/C Pro holds the number-one U.S. position in the DIY air conditioner recharge category. STP has the number-three U.S. market share in the performance chemicals category and offers a line of oil and fuel additives, functional fluids, and automotive appearance products for a wide array of customers ranging from professional racers to car enthusiasts to do-it-yourself consumers.

“This is a very exciting acquisition for Spectrum Brands that adds renowned brands with top market-share positions in growing and highly profitable

automotive aftermarket categories,” says Andreas Rouvé, chief executive officer of Spectrum Brands Holdings.

“Armored AutoGroup sells into many of the same retail channels as our current businesses, increases our presence in home improvement centres, and gives us an additional platform for global growth using our broad international infrastructure. It provides consumers and retailers with best-in-class, do-it-yourself automotive solutions, and enjoys category leadership, high brand awareness, and opportunities for additional operational efficiencies as a part of Spectrum Brands.”

Following the closing of the transaction, Armored AutoGroup is expected to operate as a separate division within Spectrum Brands, reporting to chief executive officer Andreas Rouvé.

BBB Industries Acquires Atsco Remanufacturing Inc.

BBB Industries LLC has announced that it has agreed to acquire Atsco Remanufacturing Inc. The transaction is expected to be completed in the second quarter of 2015.

Founded in 1983 and headquartered in Phoenix, Arizona, Atsco is a remanufacturer of automotive power steering products for the North American aftermarket. The company has a longstanding reputation for product leadership and customer service excellence in the power steering product segment.

Commenting on the transaction, Don Bigler, chief executive officer of BBB, says, “We are pleased to welcome Atsco to the BBB family of companies and look forward to continued growth in the power steering product segment with the addition of their products and skills to our power steering business segment.”

APPOINTMENTS Clara Bailey has joined Brake Parts Inc. as sales manager, special markets. In her new position, Bailey is responsible for the sales of BPI products to existing clients and prospecting for new clients with a focus on supporting their requirements and assisting them to grow their businesses. For the past 11 years, Bailey has served as the regional sales manager for TYC/Genera. During that time, she was successful in developing new prospects and working with existing key accounts in different distribution channels throughout the U.S. Midwest and the central Canadian markets. Bailey holds a master of business administration from the University of Illinois at Chicago.

Sean Dunnigan will assume the post of general manager, Western Canada operations, Techspan Industries Inc. Dunnigan is a graduate of McGill University and is uniquely qualified for this position with warehouse, IT, marketing, and field sales experience within Techspan. Dunnigan will be based in Vancouver, B.C., where Techspan’s new Western Canadian facility will be located. This new facility is scheduled to be operational by the end of October, 2015.

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MARKET TRACKER

Cabin Air Filters

Market Recovery, Health Concerns Fuel CAF Growth

By Steve Pawlett

G

rowing health concerns by consumers, along with a steady recovery of the automotive market and increasing OEM installation rates of cabin air filters, have combined to push up aftermarket sales in terms of unit shipments. This growing demand from the automotive industry is expected to remain a key driving factor for the market.

According to a new study by Grand View Research, Inc., the global automotive air filter market is expected to reach US$6.10 billion by 2020. A growing consumer shift towards reducing bad odour and minimizing health disorders caused due to air pollutants inside the vehicle is one of the factors expected to fuel demand for cabin air filters over the forecast period.

Other factors pushing growth in North America are increasing original equipment installation, growing consumer awareness, and the steady recovery of the automotive

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industry in North America and growing income levels in emerging economies.

Growth in the particulate cabin air filter segment will be slower than that of combination filters, as consumers are likely to switch to the latter as awareness of their advantages grows. Combination filters are priced on average 25% to 40% higher than particulate filters, boosting total aftermarket revenues. Overall, increased consumer spending on routine maintenance products over the short to medium term is expected, because people are keeping their vehicles longer in the current economy. In the U.S., the cabin air filter installation rate in vehicles in operation was 45% in 2010 and is poised to reach 56% by 2017; this will significantly drive aftermarket unit shipments of CAFs. According to the study, the global automotive air filters market was valued at US$3.35 billion in 2012. But increasing disposable income levels in emerging economies, coupled with growth in industrialization rates, have played a critical role in global automotive industry growth.

As well, agencies such as the Car Care Council and the Environmental Protection Agency have increased their efforts in creating awareness of health disorders caused due to prolonged exposure to intense pollution while driving, which has also had a positive influence on market growth.

While intake and cabin air filters are the major products used in the market, cabin air filters have emerged as the leading product segment and account for more than half of the total market revenue.

Cabin air filters have JOBBER NEWS / JUNE 2015

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become an integral part of automobiles these days, and most automobiles manufactured today come with a cabin filter already installed. This shift is expected to drive the demand for cabin air filters over the forecast period.

Although the prospects for the market are upbeat, some challenges are slowing market growth. The biggest challenge facing the market is to improve consumer awareness of the benefits of CAFs. This is still a relatively new category for end users. Consumers are aware of the importance of cabin air quality, but many are unaware that there is a filter that can remove dirt from the vehicle’s interior. Installers are often also not properly versed in current vehicle applications that have cabin air filters, and the time required to replace such filters. Therefore, they fail to communicate effectively to the vehicle owner that the CAF exists and needs replacement.

If you aren’t recommending a cabin filter replacement, you are simply leaving money on the table. Cabin air filters are becoming an important health and comfort market product, because pollution and airborne particles are an ongoing problem. It’s an easy sell once the customer is educated on the health benefits of a new cabin air filter.

Studies conducted on very busy inner-city streets have revealed that the concentration of particles and noxious gases in the air along the road is three to six times higher, and in extreme situations, five to 10 times higher than air at the side of the road. The air enters the vehicle via the ventilation system.

There are a lot of new vehicles being built that have these filters, but to a large extent, consumers don’t know anything about cabin air filters, so jobbers and technicians have a role to play in educating the consumer on this product category.

Jobbers should be talking to their technician customers about following a reminder-type approach to cabin filter replacement, similar to what has been done with oil and air filters. Prominent displays at both jobber stores and auto repair shops can also help raise consumer awareness and ultimately boost CAF sales.

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2012

2013

2014

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2016

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2018

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Global automotive air filters market revenue, by product 2012-2020 (US$Millions) JOBBER NEWS / JUNE 2015

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PREVIEW

NACE | CARS 2015 Expo and Conference Cobo Center, Detroit, Michigan July 21st – 25th

N

ow in its 33rd year, NACE | CARS 2015 features numerous opportunities for technical training, business education, demonstrations, networking, and technology showcases for stakeholders, owners, managers, and technicians in the collision and service repair industries.

Technology & Telematics Forum Returns

Now in its second year, the Technology & Telematics Forum will provide a deep dive into the future of shops and an overview of emerging technology for the industry. Sponsored by Auto Alliance and ASA, the 2015 program will feature an enhanced agenda with relevant topics for both CARS and NACE attendees.

The 2015 Technology & Telematics Forum will include five key discussion areas: • Telematics Update – The latest information from across the industry on OE and Aftermarket Telematics, as well as Connected Car activity.

• Connected Car Panel Discussion – This panel, moderated by Bob Redding (Washington representative with ASA), will discuss technical policy related to Connected Car technology from ETI, SAE, and OE representatives.

Driver Assistance Communication, Electronic Stability Control – • The functions and service requirements of cameras, GPS, and other driver assistance technologies that are used in current models.

Here Come the Apps: How Aftermarket Software will Help Drive • Telematics Innovation – A panel discussion moderated by ASA vice-president Tony Molla on how third-party companies plan to leverage connected cars.

Future Technology: Serial Edge Nibble Transmission – The • advantages and challenges of SENT, a new unidirectional communications protocol that is replacing the analogue voltage output of automotive sensors, will be discussed by Bernie Porter, an engineer with Mahle. The implications

and impact of SENT on the aftermarket repairer will be addressed.

The event will take place on the afternoon of Thursday, July 23 from 2:00 p.m. - 4:00 p.m., and a reception will follow immediately after, concluding at 6:00 p.m. Everyone involved in the automotive industry is encouraged to attend.

Newton, Greenwood To Lead CARS Inaugural Service Repair Leadership Forum

Maylan Newton, CEO and senior director of ESi, and Bob Greenwood, president/CEO of Automotive Aftermarket E-Learning Center, Ltd., will lead the inaugural Service Repair Leadership Forum. Newton and Greenwood will moderate and deliver training at the Forum on Friday, July 24th.

The Service Repair Leadership Forum is comprised of leadership from all industry segments in the automotive service repair industry. The Forum provides the industry an opportunity to discuss issues, share knowledge, network with decision-makers, and gain insight into the future of the industry.

SRLF, limited to 200 attendees, is open to all individuals

NACE MSO Symposium This year’s MSO Symposium will cover business growth, private equity, insurance and industry trends, and other managementfocused topics.

The MSO Symposium has been a popular event since its premiere in 2011, drawing attendance from the largest multi-shop operators in the collision repair industry. This business event will now cater to a broader group of high-growth and dynamic executives, allowing it to be more inclusive of some of the best operators in the collision

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repair industry. This year’s Symposium features a Chair and Advisory Board to increase industry input and direction relative to the content.

Michael LeVasseur, chair of the Advisory Board, will act as the symposium moderator with co-producers Dan Risley, Darrell Amberson, and Russell Thrall. The MSO will open Thursday, July 23 at 12 p.m. with a private welcome and strolling lunch. The program, included below, will take place from 1:00 – 5:30 p.m., followed by a private reception at Cobo Center in Detroit from 5:30 – 7:00 p.m.

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and companies interested in advancing the automotive industry. To celebrate the inauguration of the event, a private reception will be held Thursday, July 23rd from 4 – 6 p.m. The SRLF Forum will begin at 7:30 a.m. on Friday and conclude at 1:00 p.m. This event will mark Newton and Greenwood’s first time partnering. They will instruct two programs at the Forum, in addition to acting as co-masters of ceremonies.

The first program, entitled “Marketing in Today’s World without Mentioning Price,” will address marketing in the industry, and the second will address shop profitability and efficiency, entitled “True Numbers and Opening Your Eyes to Profitability & Efficiency.”

OEM Training & Support At NACE

OEM Training Sessions Include:

• GM New Vehicle Technology • 2015 F-150 Repair Information Toyota Presents: Repair Planning the Toyota Way • (Debut) Fiat Chrysler Automobiles Presents: Carbon Fibre • (Debut) Honda and Acura High Strength Steel Repair • (Debut) GM Presents: Cadillac CT6 Collision Repair • Volkswagen Presents: Service Ready • Honda Presents: Service Ready • I-CAR: 2015 Ford F-150 Structural Repair Training Course • A luminum Repair on the Corvette Stingray

2015 Schedule-at-a-Glance:

12:00 p.m. – 1:00 p.m.: Private Welcome and Strolling Lunch 1:00 p.m. – 1:30 p.m.: MSO Update & State of the Industry Address, Moderator: Dan Risley 1:30 p.m. – 2:15 p.m.: Claims Management Models, Moderator: Russell Thrall 2:15 p.m. – 3:00 p.m.: Insurer Panel, Moderator: Mike LeVasseur 3:00 p.m. – 3:15 p.m.: Break 3:15 p.m. – 4:00 p.m.: Shortage of Qualified Employees, Developing Talent and Retention, Moderator: Tony Molla 4:00 p.m. – 5:00 p.m.: The ABCs of Financing, Moderator: Dave Roberts 5:00 p.m. – 5:30 p.m.: NPS & CSI, Moderator: Mike LeVasseur 5:30 p.m. - 7:00 p.m.: Private Reception

Canadian Collision Industry Forum at NACE: Thursday July 23, 2015 1-4 p.m., with a cocktail reception from 4-6 p.m.

CCIF presents expert speakers followed by an exclusive cocktail reception. Be sure to connect with other Canadian and international collision industry leaders during your visit to NACE.

About NACE | CARS 2015 Visit www.NACEexpo.com to learn more about the MSO Symposium and all other events taking place during Industry Week in Detroit, July 21-25. These include the CIC summer meeting Tuesday-Wednesday, July 21-22, the CREF Golf Fundraiser July 22, CCIF, MERA, I-CAR classes, training, and demos, NABC, SCRS Board and open meetJOBBER NEWS / JUNE 2015

p 12-13 NACE show.indd 13

MADE I

N

Fiat Chrysler Automobiles, Ford, General Motors, Honda, Nissan, Toyota, and Volkswagen will provide training during NACE. Several of these companies will be using this year’s show as a platform to launch new training programs.

“The support and participation of car manufacturers is a significant and a historical development. Although they’ve provided training in the past, the industry has never experienced so many classes being introduced for the first time at one event. Service and repair professionals will benefit from attending, learning directly from the car manufacturers on how to repair the cars of today and tomorrow,” says Dan Risley, ASA president and executive director.

The OEMs have an opportunity to serve several segments of the automotive industry at one event. Leadership representing the collision, service repair, and insurance markets will be in attendance to gain insight on the latest in carbon fibre, high-strength steel, and aluminum repair, as well as service-ready information and telemat-

ics. In addition to exhibit floor displays and demonstrations, several car manufacturers will be displaying their new model vehicles. Attendees can expect to see presentations, seminars, and training on the most up-to-date OEM technologies. Many of the OEM training programs are complimentary with the purchase of an Expo Pass.

ings, CIECA and featuring NACE | CARS 2015 Conference + Expo WednesdaySaturday, July 22-25. (Expo will be held Thursday, Friday, and Saturday.)

2015 Exhibit Hall Hours Thursday, July 23: Noon – 6:00 p.m.

Friday, July 24: 10:00 a.m. – 6:00 p.m.

Saturday, July 25: 9:00 a.m. – 3:00 p.m.

SYNTRON ® 100% Fully Synthetic

Veedol.

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For more information contact:

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13

15-06-04 7:43 AM

Advertisement

“We wanted to move forward with a secure parts supply,” says Nova Scotia jobber Bill Fogarty. “We wanted someone who could be all things to us.

And NAPA is as close to that as you could hope for.”

Bill Fogarty hates gaps.

“That’s why we moved to NAPA.” He says that the tremendous presence that NAPA has across Canada and throughout North America gives him the confidence that his parts supply is secure.

“The first thing is that they are big and they are not going away,” says Bill. “I don’t really care if they have a place in California, but I do care that they’re big enough that they can.”

NAPA’s vast network of distribution centres—one is in nearby Moncton, N.B.—means less waiting for even hardto-find parts and that keeps him happy because it allows his stores to serve customers better.

NAPA IS THE SUPPLIER B&T BATTERY & AUTO PARTS NEEDED TO MOVE FORWARD Bill Fogarty has been in Atlantic Canada’s auto parts business for more than 40 years, and his B&T Auto Parts has been the object of his focus for the last 20.

Today with stores in Sydney, Glace Bay and Bras d’Or, his decades of experience have allowed him the opportunity to look at all the supply chain options available in the market, and even be part of a few.

“Before we joined NAPA, we were part of one group for a time, and then joined another to try to put the two together.

That worked fairly well but they still didn’t supply everything we needed,” says Bill.

There were always gaps, he says.

Gaps in parts supply.

Gaps in programs.

Gaps in service.

p 14-15 NAPA ad_spread.indd 14

He says that international presence matters on many levels beyond just the programs and capabilities he can rely on every day.

“My sons Al and Shaun are young and involved in the business.

They know that when people think about auto parts NAPA is at the top of the list. Even people who don’t know auto parts know NAPA. With 30% of B&T Auto’s business at retail, that instant recognition really matters. “That name recognition is really important. The name NAPA just says ‘auto parts’,” says Al Fogarty.

He says too that the programs behind the NAPA name have helped B&T grow its business with trade customers too.

“We’ve really seen a growth since we’ve switched over. We have increased our business considerably with our existing accounts and have switched over a number of accounts to us because of these NAPA programs.”

He says that most of their customers hadn’t wanted to be part of any program in the past, but the NAPA offerings really brought them on board. Banner and reward programs that have become very popular, NAPA training has really been a hit.

15-06-03 11:16 AM

example of NAPA’s resources. “There were 18,000 people from the NAPA network from around the world in attendance. The amount of resources they have is amazing. Everything you could imagine was there for the guys we took down. They were very impressed,” says Al, who attended with a dozen B&T staff and customers.

“NAPA’s global network is very important to us. It is important to be with someone who is moving forward and thinking progressively. They are getting their hands around everything coming down the pike for this industry, and making it work for us. And they are keeping a step ahead of the competition.

“It feels good,” says Al. “I’ll be honest: I’m not concerned about the future. Things are going great since we made the switch to NAPA.”

“The training that NAPA provides has been absolutely terrific,” says Bill. “We used to get only five or six customers to a class; now we can get 20 to 30 and we put on five or six a year. I don’t always understand what the classes are about, but I’m told they’re terrific! “ Al says that he feels B & T has a great partner in NAPA. “NAPA has what you need and NAPA is there whenever we need them.”

“When we changed over to NAPA in Sydney and Glace Bay there were 25 to 30 NAPA employees from all over the Maritimes at each store for the weekend. And again when we moved to a larger location in Sydney they came again,” says Bill.

“We walked out of our business on a Friday and we were up and running at the new location Monday morning. We never would have been able to do that with just our own staff.

“The B&T Group has been a great addition to the NAPA Atlantic Region Family. Bill along with his sons Al and Shaun have a solid growth and business succession plan in place and are not only looking at growing their current customer base but also expanding their network of stores. We are very happy and excited to have them as part of our team and will work alongside them to help achieve their goals,” says Regional Vice President (Atlantic) Dan McKim. NAPA Canada would like to congratulate the Fogarty family and B&T Battery & Auto Parts on your continued success.

Welcome to the NAPA family, we look forward to a long future as your trusted partner!

“NAPA is first class in that way. If something needs to be done, they get it done. Whenever we need something, they step up.”

NAPA’s global reach is a key part of why it can bring those resources to bear locally. The recent NAPA Expo in Las Vegas was a great

p 14-15 NAPA ad_spread.indd 15

NAPACanada.com

15-06-03 11:16 AM

COVER STORY

12th Annual Retail Intelligence Issue

Diversifying For Sales And Profit It’s All About the Customer Experience

I

n a bid to add sales volume and margin to their sales, many auto parts jobbers have begun to experiment with diversifying into other channels to increase their bottom line, with varying results.

The most common channels that jobbers are venturing into include hardware, industrial, marine, and performance.

In a recent Jobber News Survey, some 55% of respondents said they have diversified into another non-automotive channel, while 44% of respondents said they have not yet made the move.

Of those jobbers that have diversified, 28% have added an industrial channel, 24% went into agriculture, another 20% went into marine, and only 8% had expanded into hardware.

Their reasons for expansion varied: “Our shop is located in an agricultural area. Though we are primarily an automotive parts store, we had decided to branch out into some ag-related lines.

The challenge for us is that as an automotive store, we were unfamiliar with these products and it required learning about the needs of the agricultural market. The benefit has been an increase in sales and our customer base.”

“Many of my customers have ATVs, motorcycles, and snowmobiles, so carrying parts for these lines gives them another reason to shop in my store.”

By Steve Pawlett

“We got into trailer parts and accessories. There isn’t anybody else in town that has a good selection. We are now advertising and putting signs out, but it’s still too early to tell how successful

we’ll be.”

“We have a lot of marine customers in our region, so it made sense to add a marine channel.”

“More customers were asking for an alternative to their current suppliers of the performance product category.”

Dan Collins, owner of Auto Parts North in Huntsville, Ontario knows the value of a diversified product offering.

16

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JOBBER NEWS / JUNE 2015

15-06-04 7:44 AM

COVER STORY

When it comes to showroom display space, just 3% of respondents devote some 50% of their showroom space to their new line, while the majority of jobbers devote 5% to 10% of the showroom to the new line.

When it comes to measuring the success of the diversification process, some 40% of respondents claimed to have achieved only a 10% success rate with the new channel, while 13% claimed a 25% success rate, and another 13% claimed a 50% success rate; another 21% reported a 75% success rate with the new channel, while 13% reported a 100% success rate with their new line.

Many respondents on the lower end of the scale stated they need more time to develop the line and evaluate the full benefits of the move.

One respondent who now devotes 50% percent of his showroom to a new performance channel explains, “It’s easier to sell product when it’s in stock.

We sell a lot of diesel performance items. They go well with our in-house tuning service.” Another said, “The new industrial line seems to have been a good move. Sales are up.”

The successful jobber operates his business much like a racecar team. It involves a lot of moving parts, a welltrained team, and precision timing.

When the formula is dialled in, the result is a smooth, impressive, winning performance.

“Trying to win over a customer from a competitor these days is darn near impossible unless your competitor really screws up bad,” says Dan Collins, owner with his wife Sue of Auto Parts North and a member of Modern Sales, in Huntsville, Ontario. “The best way to expand business these days is by adding new channels, and you can usually identify what will work by knowing your customer base.”

Located in beautiful Muskoka cottage and camping country, Auto Parts North found a niche for truck, car, and RV accessories and brought in additional clients they wouldn’t normally attract by carrying non-automotive lines like rakes, shovels, and brooms.

“Arrowhead Provincial Park, which is located on the edge of town, has an account with us for all their rakes and shovels and other accessories, and we also get a number of landscapers coming in now. Many of them now come back to us for auto parts to service their trucks and landscaping equipment, so the non-automotive lines have helped us to expand our business and increase JOBBER NEWS / JUNE 2015

p 16-17 tips intro.indd 17

our auto parts sales at the same time,” explains Collins.

Basically, if all of your moving parts (stocking, pricing, staffing, training, and marketing efforts) are in place, when that customer steps through the door or calls in, your well-trained counterperson becomes the face of your brand.

Your counterperson should be engaging customers as they come through the door or when they pick up the phone.

The sooner that engagement begins, the sooner your employees can start creating a positive buying environment.

A good measure is to allow no more than 15 seconds for customers to get their wits about themselves, leave the traffic and nonsense behind, and focus on the reason they are at your store.

In any relationship, trust is built through communication. Only with the back and forth will your counter staff be invited to listen to the customer’s needs and offer solutions. Ask questions, listen for their answers, and share something from your own experience.

This step elevates the counterperson to the role of trusted advisor and helps the customer feel comfortable making

a purchase from them.

A counterperson who can listen will learn everything they need to know about selling to a customer. A few pointed questions, coupled with a sincere interest in the customer’s answers, will reveal any concerns that may be holding up a sale. Using their product knowledge and what they learn about the customer, the counterperson can show how the product can address those concerns.

You and your staff need to know what good service looks like. After all, you can’t hit the bull’s eye if you don’t have a target. Service standards for time to greet, for what to say, for when to say it, and for how to pass off the merchandise, all should be defined, or bad employees will compromise your brand.

Customers are judging you, so it’s up to you to proactively see that they have nothing to complain about.

At the end of the day it really comes down to making that one person in front of you feel they are the most important person in the world. There’s nothing you wouldn’t do to make their day better. It’s all about the customer’s experience.

Install better brakes.

Or hope your customers never have to use them.

WagnerBrake.com ©2015 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved.

17

15-06-04 7:44 AM

TOP RETAIL TIPS

Tips to Build Brake Sales W

hen it comes to brake components, there are plenty of options at all levels. Today the brake market is not driven by brand preference as much as it is by the reliability of the components you are handing over the counter. The key selling point is confidence in the products you are selling. This confidence comes from having a solid base of knowledge on how a braking system on a car functions, as well as how and why brakes fail. Combine this with familiarity with the brake lines you carry, and you will become the expert brake component advisor customers are looking to for help in making an educated decision on a repair that carries a high safety factor.

1. Hone Your Customer Service Skills

You need to own your customers before your competition does. Every single customer that walks in your door or dials your number wants to feel appreciated and special. They want to know they are being well served and not being overcharged. By building good relationships with customers, you improve loyalty, repeat business, and of course, your bottom line.

2. Stand Out From The Competition

Does your business stand apart from all others when it comes to brake component sales? A key step here is to always exceed customer expectations. Work closely with suppliers to build product knowledge. Utilize point-of-sale materials. A customer that is looking for components as important as brake system parts deserves your full attention.

3. Ask Questions

With vehicles being kept on the road longer, more owners are willing to make the necessary investment in preventative maintenance to avoid costly breakdowns. Find out the age of the vehicle and how long they plan to hold onto it. Are they looking to get another five to seven years out of it? If so, then they are likely open to installing a premium set of brake linings and rotors to ensure a long, maintenance-free life and superior brake performance that will keep their family safe.

4. Time is Money

We all live life at a much faster pace these days, so when a customer comes in for parts, while it is your job to ensure they are making an informed buying decision, be prudent and don’t waste their time by going into too much detail or by sharing random “brake failure stories.” Make good eye contact, be informative and direct, and congratulate them on a well-made buying decision.

5. Avoid Hardware Headaches

Re-using worn hardware can result in noisy, under-per18

p 18-24 tips.indd 18

forming brakes. It is important to emphasize this to your customer. Impress upon them the fact that the investment in new brake components is well worth the few extra dollars to include all new hardware. Make sure your DIY customers have all the necessary tools and supplies, such as proper lubricant for the sliders, to complete the task at hand.

6. Rotor Recommendations

Customers that come in asking for pads only likely need rotors too, and just don’t know it. Ask how the car is performing. Is there any pulsing or squealing when the brakes are applied? Are the pads worn down to the rivets, and have they scored the rotors? Point out how much more cost-effective it is to replace both pads and rotors together. It will result in a longer pad life, better braking, and safer vehicle response in emergency braking situations.

7. The Import Challenge

Foreign-plate customers are often highly loyal to the original brand name components installed on their vehicle. Be attuned to this fact; having a broad knowledge of import brake options as well as a well-stocked shelf of brand-name import brake parts means you can confidently assure your customer that you have both the knowledge and the parts on hand to fulfill their specialized requirements.

8. Advising the DIYer

Even though counter staff have yet to be deputized to enforce safe brake installation procedures, something as critical as a brake job requires a fairly high level of mechanical knowledge. Don’t hesitate to ask the customer if this is their first brake job. Talk them through the process and see if they have the knowledge to carry out the task. The customer may also require some specialized tools for the job. Be helpful.

The customer will thank you later.

9. Share Knowledge

Ask if the customer knows what the condition of his brakes is. He may even have them on hand – having left the car up on jack stands – and you may be able to see, for instance, evidence of extremely uneven wear. If so, you should point it out; it may be a sign of a lazy caliper, which should be rectified or, if left alone, it could cost him accelerated wear on the new pads he’s buying from you.

10. Go The Extra Mile

While it may not be possible to follow up with every customer, for those customers you have spent extra time with to help them, schedule a reminder follow-up call. It will only take a few minutes out of your day, they will appreciate your thoughtfulness, and you will secure a loyal customer. Also, any feedback from the customer can help to hone your sales skills.

JOBBER NEWS / JUNE 2015

15-06-04 7:44 AM

AutoServiceWorld.com

is now on Facebook

Thousands of you already like us on the web every month.

Now You Can Like Us on Facebook AutoServiceWorld.com serves Canada’s automotive aftermarket.

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15-03-12 10:09 AM 15-06-04 7:45 AM

TOP RETAIL TIPS

Exhaust System Sales T

he exhaust market has seen a resurgence of sorts over the past few seasons, with the reintroduction and continued expansion of muscle car models from all major OEs as well as growth in the standard replacement category. Significant improvements in the size and breadth of the performance exhaust category have also had an effect.

1. Keep an Open Mind

For the retail customer, the performance market should certainly command the bulk of your attention, due to its attractiveness to the consumer as well as its profit potential, but don’t write off the dedicated DIYer looking for a quiet daily ride.

2. Be Brand Smart

As noted, brand can play an important role in making the sale. Even if performance numbers are identical, customers may demand a specific appearance, logo, and brand. Look for clues on this, but don’t give up too easily if the brand they come in looking for isn’t something you have on hand. They may be easily swayed by the numbers, but if not, look for how you can fulfill their request.

3. Performance is in the Eye of the Beholder

Performance customers can come in many shapes and sizes, as can the object of their affection. There are traditional muscle car enthusiasts who look for brands and sounds that they might have grown up with, and the compact performance lover who is still looking for something to provide a boost in look and sound.

4. Know Standard Replacement Upgrades

6 Don’t Get Too Technical

Years ago, most people doing custom performance work on their cars were themselves mechanical experts. This aspect of the business has certainly changed dramatically, with the proliferation of performance exhaust systems for everything from SUVs to minivans.

Today, you have to be prepared to sell performance parts to a wide range of customers, using an even wider range of selling points. Sell based on factors customers can understand and appreciate, like increased horsepower or fuel efficiency, and you’ll be more likely to keep them interested.

7 Use The Web To Educate

Today’s customers are technologysavvy, so you should be prepared to direct consumers to various manufacturers’ websites, as well as provide them with other high-tech data involved in the process. While it may still be important to shy away from the shoptalk, today’s tech-savvy customer will appreciate some of the more technical data if it is presented online or in some other multimedia format.

8 Utilize Manufacturer Programs

With so many performance buyers researching their purchase online prior to a shop visit now, many manufacturers have taken notice and now offer to actually provide the contact details for jobbers in the region of the customer doing the initial search, in order to lead them to the right places.

Normally some sort of membership with the manufacturer is required, but for a small fee, customers from your local area who are looking into a particular part can be led from the massive corporate manufacturers’ sites right to your door.

No, this is not a contradiction. Compared to the products you might have had access to only a few years ago, the quality and variety of options in the standard replacement category have expanded. Stainless steel has made its way into the replacement category, of course, but there are also options that provide shifts from OE sound and performance without being hardcore performance parts.

9 Stainless Steel Should Shine

5. Know Your Cats

A key attribute of the performance exhaust market is the installation itself. By virtue of your place in the parts food chain, you are inexorably linked in the memories of retail customers to whoever eventually installs the part. Should the customer ask, always have an established shop’s name and number at the ready.

As the catalytic converter market has expanded and emission technology has improved, replacement catalytic converters have had to keep pace. Ensure that you know which units you have access to that can keep Check Engine lights off and customers happy.

20

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People looking to get into customized exhaust parts do it for both the performance and the appearance qualities. So if you are displaying what should be a fantastic-looking high performance stainless steel system, make sure it sparkles the way it ought to.

10 Establish Installation Partners

JOBBER NEWS / JUNE 2015

15-06-04 7:45 AM

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15-06-04 10:59 AM

TOP RETAIL TIPS

Motor Oil & Filter Sales Tips M

otor oil and oil filters might be called the lifeblood of the aftermarket, because they play such a critical role in basic regular maintenance. With the variety of items available on the market today, selling in this category can be challenging. Fortunately, there are a number of keys to selling oil and filters that can help give you that slight edge over your competitors.

1. Know Your Selling Points

Knowing the basics, such as the make, model, and year of the vehicle, will help to identify what type of motor oil it uses, but you should also inquire about the customer’s relationship with the vehicle. Is it a car they use as basic transportation, or a car they have dreamed about owning their entire life?

The way the customer feels about their vehicle will have a big impact on the type of motor oil they choose.

2. Assess Driving Conditions

In addition to that first consideration, driving style, climate, and vehicle mileage will also contribute to a recommendation. What conditions does the customer typically encounter on a day-to-day basis? For example, if the vehicle is a pick-up used for mixed commercial use, does this involve towing trailers or hauling loads? Is the vehicle used for commuting?

Does this include mostly highway or stop-and-go city driving?

These questions help determine if the vehicle and engine oil are subjected to any extreme conditions, and whether specific engine oils that target those conditions should be recommended.

3. Educate The Customer

When a customer selects a brand-name motor oil, they are not just purchasing the oil in the bottle; they are also purchasing the engineering and testing of that motor oil that ensures it is of a high quality and will perform as advertised within the engine. Take the time to ensure your customer understands the certification approvals that are specified on the label when choosing a brand or specific type of engine oil.

4. Make Recommendations

Does the customer feel that maintaining their vehicle is important, or do they see maintenance as the downside to owning a vehicle? This will also help to determine the type of oil that the customer would be most likely to purchase.

Someone who is purchasing oil begrudgingly might not consider using a top-quality product. If the customer has a positive attitude towards maintenance, follow up by asking if they are doing the oil change themselves or taking it to a shop.

5. Oil Choices For Older Vehicles

The best oil to recommend for older engines would be a brand name, high-mileage semi-synthetic blend or a full synthetic oil. Both semi-synthetic and fully synthetic oils offer better flow, pumping, and cranking abilities at extremely low temperatures (minus 40C) and during start-up. Point out how the superior oxidative and thermal stability of synthetic grades leaves engines virtually varnish-free and reduces 22

p 18-24 tips.indd 22

sludge and deposits that could have built up in older engines.

6. The Benefits Of Extended Oil Change Intervals

While the early tendency of the trade was to dismiss manufacturer-recommended oil change intervals as a recipe for engine damage, that message has little credibility in the face of automakers’ recommendations. However, with extended oil changes comes the very credible opportunity to recommend the highest quality, most durable products you can offer. This applies to both the motor oil you sell – semi-synthetic and full synthetic, for example – as well as filters that can withstand as much as five times the intervals you might have been recommending pre-extended interval trend.

7. Product Placement Is Key

It’s always a good idea to make sure your displays are clean and well laid out. Make sure that your motor oil isn’t front and centre of your store, as most walk-in customers will be more than willing to search for their chosen brand of motor oil. Lead them through the store to your oil display to increase the possibly of purchasing other items. Also, be sure to place related items in close proximity to one another.

8. Ensure DIYers Have Everything

Ensure that each customer is asked if they need catch basins, disposal bags, and instructions on what to do with the used oil and filter. If your local municipality has a program (most if not all do), have the details on hand for the consumer. It will help raise your environmental image and also help you guard against being accused of promoting non-environmentally friendly practices.

9. Display A Used Filter For Effect

Like the lungs of a smoker, used oil filters are awful-looking.

By displaying the cross-section of a used oil filter, you’ll be driving home for the consumer the importance of regular filter maintenance.

JOBBER NEWS / JUNE 2015

15-06-04 7:45 AM

What’s in it for you?

AIA Canada: building bridges.

Solving the issues.

You’re a jobber, and you know your business. You’ve done all you can to satisfy your customers. But yet, they are still facing certain issues.

These issues have become yours from the moment they were brought to your attention.

or are managed under different sectors, meaning multiple websites, documentation, information, applications and contact information.

Trying to sift through it all can be time-consuming, frustrating and often fruitless.

Automotive Industries Association (AIA) of Canada understands these particular challenges that seem to never end. From skilled labour shortages to workplace safety, there are always some obstacles that keep you away from the results you or your customers are thriving for. Do you recognize them? Whether you do or not, we are here to help and we want to hear from you. Removing these barriers is the purpose of AIA’s Government Relations (GR) activities undertaken by both AIA GR staff, represented by the Director of Government Relations, and AIA members, as part of the GR Committee.

Through continuous dialogue with its members, the AIA GR Committee has repeatedly heard that government programs can be difficult to access and information hard to locate. In many cases, members aren’t aware of existing incentives like resources that can support hiring of new staff or purchasing new equipment. On the other side , government officials were commenting on the lack of uptake or response to initiatives they had in place for the automotive aftermarket sector.

The Committee’s mandate is to ensure the challenges you are facing on all three levels of government are brought forward, addressed and resolved. It was created to help you access the many tools and resources available through local, provincial and federal programs. The Committee reports to AIA’s Board of Directors.

Initiate and maintain an open dialogue Addressing the issues important to the industry can only be done through open discussion to achieve understanding on every side.

In this context, building bridges through dialogue is key to help government representatives and elected officials better understand the collective reason why they must be solved. In the past year alone, meetings were held throughout the country with tangible results for the automotive aftermarket industry as a whole.

On the provincial level, from British Columbia to New Brunswick, discussions have included job creation, workplace safety regulations and training programs, small and medium enterprise (SME ) resources, apprenticeship programs, and road safety issues. Federal government meetings have also been held on topics such as taxation, road safety and skilled labour shortages, among many others.

“What we do is proactive rather than reactive,” says AIA’s Director of Government Relations, Jason Kerr. “We listen, to our members in all aspects concerning the automotive aftermarket industry and any impediments affecting their business. We work on finding solutions that speak to their needs. Jobbers work directly with the shops and service providers and they hear what is going on and where the problems are. When those issues are brought forward, we gather the necessary information and meet with the decision-makers to get a policy or programs advanced, or lobby to bring change.”

AIA Canada reports to its membership on any progress regarding ongoing discussions through regular advisories. Members can also contact AIA Canada directly for status updates on particular topics or to bring forward any comments and concerns. Notifications and updates are also posted on the AIA Canada’s website (www.aiacanada. com), as well as on its social media channels like Facebook (facebook. com/aiaofcanada) and Twitter (@aiaofcanada).

Providing resources and bringing results Many of the government programs are run by different departments

p 23 AIA ad.indd 23

By acting as a conduit between AIA members and the government, the Committee is providing a much needed solution.

Comprehensive job and training tool kits were developed by the provincial governments. They include information for small or medium-size businesses about available government programming and grants.

These “one-stop shop” documents give members an overview of the options available to help their businesses grow; from tax credits to specialized educational opportunities, financial support for training programs to grants for hiring youth.

To date, these tool kits - available on AIA’s website - have been created for Alberta, Manitoba, British Columbia and Nova Scotia.

New Brunswick has committed to developing one. Ontario and Saskatchewan kits are in discussion.

Also, hot off the press this year, is the new AIA Canada’s GR handbook.

Created by the subject matter experts at AIA, it is an easy-to-read and concise guide for those who want to advocate on issues impacting their jobs and companies. It includes: the role of government relations, how can you make a difference in the political process, why it is important to meet with the government, how to schedule a meeting, and much more. The guide takes you through protocols and sample letters, and includes an AIA Canada meeting feedback form.

A three-fold “leave-behind” brochure about the top GR issues for the automotive aftermarket industry in Canada has also been developed for members as a hand-out to government officials and stakeholders.

All these resources and tools have been designed to connect you with the government so you can connect better with your customers.

Expertise in automotive aftermarket industry, commitment and a skilled GR team, that is what an AIA Canada membership does for you.

Automotive Industries Association of Canada 1272 Wellington Street West Ottawa, ON K1Y 3A7 www.aiacanada.com Telephone: (800) 808-2920 Fax: (613) 728-6021

15-06-04 2:23 PM

TOP RETAIL TIPS

Tune-up Tips To Build Sales T

oday, a strong argument could easily be made that the term “tune-up” no longer applies to today’s auto park. Today’s vehicles are now equipped with electronic ignitions and several onboard computers that control all of these functions and more.

The term “engine performance maintenance” is probably a more accurate term to use when talking to customers.

1. Explain Engine Performance Maintenance

It’s helpful to point out to your customer that today, an automotive tune-up consists of an orderly process of inspection, diagnosis, testing, and adjustment that is periodically necessary to maintain peak engine performance or restore the engine to original operating efficiency. Also point out that they can and should still replace normal maintenance parts on a timely basis to maintain engine performance.

2. Understanding Spark Plugs

Spark plugs are good indicators of engine condition.

Removing and inspecting spark plugs will tell you a lot about how well the engine is running, and what may be causing problems.

All spark plugs should be removed and checked every 50,000 kilometres. Even though most OEMs recommend changing spark plugs at 100,000 kilometres, this prevents the plugs from seizing in the block, causing expensive repairs down the road.

3. Oil Filter

Oil filters are easy to replace and help prevent unnecessary engine wear. The job of the oil filter is to remove soot, rust particles, and other solid contaminants from the oil. The oil filter capacity and filtering characteristics should be compatible with the type of oil to be used in the vehicle, whether it is semi-synthetic, synthetic, or mineral oil.

4. Air Filter

Air filters should be replaced every 20,000 kilometres (more often if you live or drive in dusty areas). Any filter that looks heavily loaded should be replaced regardless of the number of kilometres, as should any filter that shows any type of damage.

5. PCV Breather Filter

The PCV breather filter assures only clean, filtered air is drawn in through the PCV breather. A clogged breather 24

p 18-24 tips.indd 24

filter prevents the PCV from siphoning away the blowby gases and moisture created by engine combustion, resulting in oil breakdown and sludge build-up. The PCV breather filter should be replaced every 30,000 kilometres; however, yearly replacements are a good preventive measure.

6. Fuel Filter

If the fuel filter is not replaced regularly, fuel flow to the engine will become restricted, resulting in stalling, loss of high-speed power, and hard starting. The fuel filter should be replaced every 30,000 km; however, professionals recommend a yearly fuel filter change and a change whenever other fuel system parts are replaced.

7. Automatic Transmission Filter

Properly filtered transmission fluid transmits energy, plus it cools and lubricates the moving parts of the transmission. A clogged transmission filter can produce transmission slippage, engagement problems, and hesitation. Experts recommend this filter be changed every 12,000 to 15,000 kilometres to extend the life of your automatic transmission.

8. Other Maintenance Parts

Many maintenance parts are mistakenly seen as non-critical to many customers. While they may not be considered true “tune-up” parts, the functions of these parts can definitely impact the benefit of any tune-up. Plus, as emission laws continue to become more stringent, these parts have become more essential.

9. Oxygen Sensors

Oxygen sensors should be replaced at the recommended intervals. A worn oxygen sensor drastically changes engine settings.

10. Vacuum Hoses

1any major systems depend on a manifold vacuum for signals and function. All vacuum hoses should be checked and replaced as needed. Even a slight leak can cause major problems with performance; in some cases, the car won’t even run if there’s a vacuum leak.

11. Temperature Sensors

Temperature sensors regulate various engine functions.

They control the fuel injection system, cooling system, and even the exhaust system. And they can definitely be a cause of poor performance problems.

JOBBER NEWS / JUNE 2015

15-06-04 7:45 AM

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HUSKY ENERGY CORPORATION 707-8th Ave. S.W. Calgary AB T2P 1H5 Tel: (403) 298-6709 huskyenergy.ca

UFA 4838 Richard Rd. S.W. Suite 700 Calgary AB T3E 6L1 Tel: (403) 570-4306 ufa.com

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15-05-08 1:33 PM

15-06-03 11:18 AM

For the Counterperson

June 2015

Knowledge Building:

Complying With

E

WHMIS 2015

mployees in the automotive aftermarket industry work with chemicals and materials that can affect their health and safety. Hazardous materials can be found in a range of common products in the workplace, such as paints, cleaners, solvents, hardeners, sealants, adhesives, batteries, antifreeze, refrigerants, and waste products from these materials. Employees may be exposed while painting, cleaning parts and equipment, while servicing and repairing vehicles, or when cleaning up spills. The effects on workers exposed to these chemicals can range from feeling ill or getting headaches, to nervous system, kidney, or lung damage, burns, rashes, and even cancer. Some of these materials can cause fires and explosions.

For everyone in the automotive aftermarket, it is important to understand that WHMIS 2015 regulations are distinct from other laws such as the Transportation of Dangerous Goods regulations (TDG), or the Consumer Chemical and Container Regulations (CCCR). If you’ve taken steps to comply with TDG or CCCR, that’s great news, but you still have to comply with WHMIS 2015 regulations as well.

While WHMIS 2015 includes new harmonized criteria for hazard classification and requirements for labels and safety data sheets, the roles and responsibilities for suppliers, employers, and workers have not changed.

By Steve Pawlett

Suppliers, defined as persons who, in the course of business, sell or import a hazardous product, will continue to: • identify whether their products are hazardous products; • prepare labels and safety data sheets, and provide these to purchasers of hazardous products intended for use in a workplace.

Employers will continue to:

• educate and train workers on the hazards and safe use of hazardous products in the workplace; • ensure that hazardous products are properly labelled; • prepare workplace labels and safety data sheets (as necessary); • ensure appropriate control measures are in place to protect the health and safety of workers.

Workers will continue to: • participate in WHMIS and chemical safety training programs; • take necessary steps to protect themselves and their coworkers; • participate in identifying and controlling hazards.

To provide Canadian suppliers, employers, and workers time to adjust to WHMIS 2015, there is a transition period. During this period, suppliers are allowed to either continue to comply with the old HPA and the repealed CPR and Ingredient Disclosure List, or they must comply with the new HPA and the new HPR. However, the supplier must fully comply with either the old HPA/repealed CPR/Ingredient Disclosure List or the new HPA and HPR for a specific controlled or hazardous product. The classification, label and (material) safety data sheet must comply fully with the specific legislation and regulation chosen by the supplier, and not a combination of the two.

A label or SDS that is compliant with the United States Hazard Communication Standard (2012) may not be sufficient for compliance in Canada. The supplier must be compliant with the Canadian requirements, whether the CPR or the HPR. The recently introduced Globally Harmonized System of Classification and Labelling of Chemicals (GHS) is an internationally consistent approach to classifying chemicals and communicating hazard information through labels and safety data sheets.

The key objectives of the GHS are:

• to increase worker protections through the adoption of an improved, globally recognized standard for communicating the hazards associated with workplace hazardous chemicals. continued on page 28 26

p 26-28 Counter Talk.indd 26

JOBBER NEWS / JUNE 2015

15-06-04 7:47 AM

Do you know who the

Best Counterperson is?

Andrew Malone, B&B Dixon Automotive Inc., Newmarket, Ont. 2014 Counterperson of the Year

The 2015 2013 Jobber News Counterperson of the Year Award seeks to reward the very best of the frontline workers in the Canadian automotive aftermarket.

Anyone can nominate a counterperson, and anyone is eligible.

Evaluation and selection of the winner will be made on the basis of experience, training, as well as customer and store owner comments.

While not mandatory, participation in and organizing of training clinics, proficiency in computer cataloguing programs, and professional certifications such as Red Seal and ASE Parts Specialist will all be , considered strongly in a nominee s favour.

Formally named the Abe Schwartz Counterperson of the Year Award, it is named after the late owner of century-old British Auto Supply in Toronto, who worked behind the counter for more than half a century.

The 2015 Jobber News Counterperson of the Year Award is sponsored by:

www.epicor.com

Nominate your choice online at www.autoserviceworld.com or complete and mail the form below to: Jobber Awards c/o Counterperson Award, 80 Valleybrook Drive, Toronto, ON M3B 2S9 or fax to 416-510-5140.

I nominate:__________________________________

The reason I believe this nominee deserves this award is:

Who works at ______________________________________

___________________________________________________

Address ___________________________________________

___________________________________________________

Phone (______)_____________________________________

___________________________________________________

My Name ________________________________________ Company __________________________________________ Address ___________________________________________ Phone (______)_____________________________________

p 27 counter person 2015.indd 27

___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ Please use a separate sheet if you require additional space

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continued from page 26 • to facilitate trade through common labelling and other hazard communication requirements; • to lower costs for businesses and consumers by reducing the need for retesting and reclassifying workplace hazardous chemicals from, or for, different markets.

The Workplace Hazardous Materials Information System (WHMIS) 2015 requirements are laid out in the amended Hazardous Product Act (HPA) and the new Hazardous Products Regulations (HPR).

This section provides information on some of the key regulatory changes to WHMIS 1988 as a result of the coming into force of the modifications to the HPA and the coming into force of the new HPR. Additional technical guidance is expected to be added throughout 2015.

Hazard Classes: The Globally Harmonized System of Classification and Labelling of Chemicals (GHS) includes three types of hazard classes: physical hazard classes, which represent hazards relating to physical and chemical properties, such as flammability or compressed gases; health hazard classes, which represent hazards to health arising from exposure to a substance or mixture, such as acute toxicity or skin sensitization; and environmental hazard classes (hazardous to the aquatic environment and hazardous to the ozone layer). Further information on how each type of hazard class is addressed in the HPR is listed below.

Physical Hazards: The GHS physical hazard classes subdivide physical hazards in a manner that differs from the Controlled Products Regulations (CPR); however, nearly all of the physical hazards that are covered in the CPR are addressed by the GHS physical hazard classes. All GHS physical hazard classes except the Explosives hazard class have been adopted in Canada by the HPR. In addition, the following new physical hazard classes have been introduced in the HPR to enhance protections for workers: Combustible Dusts, Simple Asphyxiants, Pyrophoric Gases, and Physical Hazards Not Otherwise Classified.

Health Hazards: The GHS health hazard classes subdivide health hazards in a manner that differs from the CPR; however, these classes address nearly all of the health hazards that are currently covered in the CPR and introduce some additional types of hazards that are not currently covered but would enhance protections for workers (for example, aspiration hazard). All GHS health hazard classes have been adopted in Canada by the HPR. The Biohazardous Infectious Materials hazard class (which is not a GHS health hazard class) has been retained in the HPR in order to maintain worker protection, and a new Health Hazards Not Otherwise Classified class has also been introduced.

Environmental Hazards: The GHS environmental hazard classes have not been adopted in the HPR. Safety Data Sheets and Labels: The general concept of communicating the hazards of a product on a label and safety data sheet (SDS) through pictures and statements that convey messages about hazards, precautions, and first aid measures remains the same under the new HPR. However, different pictograms and statements are required under the HPR than were required under the CPR. Through the implementation of GHS, it is now possible to meet both Canadian and U.S. requirements using a single label and SDS for each hazardous product.

For more detailed information on WHMIS 2015, go to Heath Canada’s website, http://www.hc-sc.gc.ca/.

JOBBER NEWS / JUNE 2015

15-06-04 7:47 AM

Automotive Internet Directory Visit these companies directly at their web addresses or check out the growing list of Hot Links at www.autoserviceworld.com.

To find out how your organization can be included in this directory and on the web, contact aross@jobbernews.com

AUTOMOTIVE ELECTRONICS Allan’s Automotive Electronics Ltd.

www.allansautomotive.com Phone: 780-469-8060 Your Automotive Test Equipment Repair Specialist Tool Sales and Service.

We provide service and warranty for most makes of automotive test equipment.

AUTOMOTIVE PARTS & ACCESSORIES Aisin World Corp. of America, Inc. (AWA), a leading Tier One automotive components supplier and one of the world’s largest manufacturers of aftermarket parts.

AISIN’s original equipment technology and know-how is used to ensure product quality and reliability. To learn more about our products, request a catalogue today. www.aisinaftermarket.com Continental ContiTech

www.contitech.ca “An Aftermarket line so premium you can only call it Elite®.”

NGK Spark Plugs Canada Limited www.ngksparkplugs.ca The World Leader in Spark Plugs, Oxygen Sensors and Ignition Wire Sets.

Used by 87% of the World’s OE Manufacturers S.B International Inc. www.sbintl.com “We keep engines humming”

AUTOMOTIVE RECYCLERS Carcone’s Auto Recycling and Wheel Refinishing www.carcone.com With over 32 years of experience Carcone’s Auto Recycling & Wheel Refinishing is your one stop for quality recycled products and wheel refinishing needs. Call today at 1-800-263-2022 or visit us on line at www.carcone.com Standard Auto Wreckers View Our Online Inventory @ www. standardautowreckers.com or call 416-286-8686.

Experienced Shipping Department to Ensure Parts Arrive Safely.

JOBBER NEWS / JUNE 2015

p 29 internet and ad index.indd 29

BUSINESS MANAGEMENT SERVICES The Automotive Aftermarket E-Learning Centre Ltd www.aaec.ca AAEC - BEST - Business Evaluation Support & Training - Instructing and Coaching with the Proven Business Management Tools that drives a shop’s Bottom Line, Team Culture and Marketplace Credibility.

Introducing Snap Admail™ for small business Snap Admail™ is a fast and easy online tool for marketing your small business. It gives you a variety of design templates to choose from, precise ways to target your audience and 24/7 expert consultation. Plus printing and mailing of your message is looked after for you. Let Snap Admail™ take the complexity out of marketing your business.

Enter promo code 50SAVE4 and SAVE $50* on your FIRST ORDER at canadapost.ca/ snapadmail Vehicle Integrity Manager www.vehicleim.com/ More than just a replacement for your inspection sheet.

Electronic Inspections are just the beginning!

HAND CLEANERS GOJO Industries, Inc. www.automotive.gojo.com GOJO is a leading manufacturer of skin care products and services for many marketing including automotive and manufacturing. GOJO continues to pursue a commitment of creating well-being through hand hygiene and healthy skin.

TOOLS & EQUIPMENT AIR LIQUIDE CANADA INC. www.airliquide.ca Your one-stop shop for all your industrial gases and welding supplies.

Auto Test Tools.ca

Your one stop for specialized diagnostic tools and accessories.

Contact; www.auto-know.com, ronbrown@on. aibn.com, 1-800-665-8773

Jobber News Marketplace Classifieds

Reach Key Aftermarket Players. Across Canada. Every month. From less than $150 a month. For more info, contact the publisher at aross@jobbernews.com or call toll free from Canada 1-800-268-7742 ext. 6763, or from the U.S. 1-800-387-0273 ext. 6763.

WAREHOUSE DISTRIBUTORS & BUYING GROUPS Bestbuy Distributors Limited www. bestbuydistributors.ca Independent buying group and warehouse distributor that allocates its profits to member shareholders and provides unbeatable value for independent jobbers.

The E.R.I. Group www.theerigroup.com Canada’s Premier Machine Shop Buying Group

Marketplace

MIB The remedy for expensive parts store computer systems.

Get answers from us. www.mib4canada.com 888-536-1438 toll free Since 1977 ADVERTISERS INDEX Company Page # AAPEX (Automotive Aftermarket Products Expo, www.aapexshow.com) �������������������������������������������������9 ACI-Agri-Cover Inc. (www.agricover.com) ����������������28 Automotive Industries Association of Canada (www.aiacanada.com) �����������������������������������������������23 Automobile Solutions Americas Inc. (www.asaveedol.com) �����������������������������������������������13 AutoServiceWorld.com on Facebook (www.autoserviceworld.com) �����������������������������������19 Cardone Industries Inc. (www.cardone.com) �����������21 Chevron Global Lubricants (www.chevronlubricants.com) ����������������������������������25 Continental ContiTech (www.contitech.us) ��������������IFC Federal-Mogul Motorparts (www.federalmogul.com) ���������������������������������17, OBC Jobber News Counterperson of the Year, presented

by Epicor Nomination Form (www.autoserviceworld. com/awards/counterperson) �������������������������������������27 MIB (www.storepossystem.com) �����������������������������29 NAPA Canada (www.napacanada.com) ��������������14, 15 Promax Auto Parts Depot (www.autopartsdepot.ca) ��5 Raybestos Brakes (www.raybestosbrakes.com) ���� IBC Schaeffler Group USA Inc. (www.Schaeffler-Aftermarket.us) ��������������������������������7 Shrader Canada Limited (www.shradercanada.com) 11 Techspan Automotive (www.techspan.ca) ������������������7

29

15-06-04 7:48 AM

Editorial Comment

BOARDROOM, NOT SHOWROOM, FAILURES COST TARGET

W

www.autoserviceworld.com

Twitter: Andrew Ross (@ JobberNews)

https://www.facebook.com /pages/AutoServiceWorldcom/ 244916465611841

NEXT MONTH

Jobber Of The Year Issue Tune-Up and Emissions Filter Focus – Oil, Air, and Cabin Filters Cooling and A/C System Tech 30

p 30 Comment.indd 30

ithout a doubt the most heavily analyzed retail foray into Canada was the ill-starred arrival, and soon thereafter departure, of the Target chain.

From the first day the first store opened, the criticism was blistering: same old Zellers layouts, old stock, underwhelming pricing, underwhelming selection, and so on.

Not long ago I even tackled some of Target’s issues in this space, but at that time I believed there was enough brand equity with the Canadian shopper that there was a chance it could still turn things around.

As we all know now, it did nothing of the sort; after turfing a CEO (and no doubt others with much less publicity), Target closed its Canadian operations for good in April.

Target did have an uphill battle from the very beginning. Its first mistake may have been to gamble its cheap-chic reputation on cut-rate retail locations that may have looked good to the bean counters, but simply weren’t up to snuff for Target-smart shoppers.

Furthermore, shelves were often empty, pricing simply didn’t knock consumers’ socks off – and yet, even after a dismal start, Target didn’t seem to fully appreciate the need for a rethink.

I have read that the empty shelves were the result of inflexible planogram-obsessed floor managers, compounded by store systems that could not communicate with warehouse systems. The result was stockrooms jammed to the rafters with product, which the planogram enforcers wouldn’t allow to be used to fill empty shelf space.

That said, it would be a mistake to assume that the empty shelves were the only cause of Target’s demise. They were just a symptom of poor decisions made at the very top. Among these was the oft-repeated mantra that Canadians had to get used to being a one-stop shopping culture. That sentiment was called arrogant by many analysts, and rightly so, though it was probably not meant that way.

To me, what it says is not that Target assumed it could change Canadian shopping habits, but that Target needed them to change to meet its average sale imperatives – or if you wish, average sales per square foot – that formed the foundation of its business plan here.

Somewhere in Target’s archives is a spreadsheet that shows what they needed, and what they could reasonably expect to get from those stores. And that gap was never going to close without a massive shift.

When viewed that way, there is a note of desperation in the assertion that Canadians could be made to change their habit of cherry-picking different discounters for their weekly or monthly shop, simply because there was a shiny new store in town.

Armed with those imperatives, red flags should have gone off even before the first store opened when cross-border rules and conflicting supplier arrangements made it clear that Target could simply not duplicate the experience that had made it a hit with cross-border shoppers.

Instead, somebody decided that the Target name was more important than brands and selection. We’ve seen that before in Canadian retail – Eatons and Simpsons, to name just two – and it has never ended well.

Target’s failures began with a plan that was flawed, because it required customers to radically change their habits to succeed. It compounded them by going full steam ahead even when it became all too apparent that Target would not be able to deliver what customers (who might actually have been willing to change) were looking for.

In the end, Target’s best decision probably came from the same place as all the poor ones had: the boardroom. Looking at a projected profit horizon of 2021, mounting debt, and troubles enough at home (data breaches and other problems), management’s decision to cut its losses and leave Canada may just have been one of the few correct decisions it made in this whole affair.

Andrew Ross, publisher and editor, Jobber News Magazine JOBBER NEWS / JUNE 2015

15-06-04 7:38 AM

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