Jobber News June 2018

AIA ELECTS FIRST WOMAN TO EXECUTIVE COMMITTEE • TRADE SHOW SEASON ACROSS THE COUNTRY

Jobber News Serving the Automotive Aftermarket Since 1931

PLUS

HOW MOTOR OIL HAS AND WILL CHANGE WHY LISTENING TO CUSTOMERS IS IMPORTANT

15th Annual Retail Intelligence Report MAPPING OUT THE CUSTOMER’S ONLINE JOURNEY

JUNE 2018

Canada Post Canadian Publications Mail Sales Agreement No. 40063170

Born in Japan. Raised in Detroit.

NGK produces more OEM spark plugs for the Detroit Three than any other manufacturer. Ford, General Motors and FCA all trust NGK to produce the most advanced, reliable and high quality plugs on the market. In fact, NGK was recently honoured with its 10th Supplier of the Year Award by General Motors.

All company, product and service names are for identiďŹ cation purposes only. Use of these names, logos, and brands does not imply endorsement.

THE IGNITION SPECIALIST Find out more at ngksparkplugs.ca

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Jobber News

contents | june 2018 » vol. 86 no. 05

Serving the Automotive Aftermarket Since 1931

news

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7

20

14

COVER STORY |

14

RETAIL INTELLIGENCE REPORT

Completing the Circle Customers know what they want when they’re shopping online. Chances are, you’re not giving it to them. The way consumers buy automotive products is still evolving and jobbers have the opportunity to set themselves apart by seizing the gap that currently exists in the online marketplace. How can you give them what they expect?

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AIA events

The AIA elected the first woman to its executive committee, Susan Hitchon. Brent Hesje officially moved into the role of chairman.

Shannon Spano won the Young Leader Award. Executives took in a conference just for them. Catch up on all the happenings.

29

in this issue

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Tradeshow season

Jobbers across the country held tradeshows for their customers.

Lordco welcomed more than 16,000 attendees over its two-day show in Vancouver, while Barton Auto Parts and Ideal Supply hosted events for customers in Ontario.

Data portal

The Automotive Aftermarket Suppliers Association recently held its annual Vision Conference, announcing its working group was looking to find a solution to data ownership and sharing.

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Automechankia Preview

MOTOR OIL |

26

Changing specs Remember when motor oil was simple? That’s not the case anymore as automakers are forcing change.

That’s why it’s important for jobbers and counter staff to make sure they’re on top of developments.

Furthermore, boosting sales of synthetics should be top of mind.

26

The latest edition of NACE Automechankia is coming up at the beginning of August in Atlanta.

Everyone from technicians to jobbers is invited to take in essential training sessions.

columns

29 RETAIL INTELLIGENCE |

5

Asking and listening

Leading off Missing in action

35 New products

It’s always important to ask the right questions when a customer walks through the doors. As a counterperson, however, it may be more important to also listen to the customer. According to experts, we don’t do enough to hear what the do-it-yourselfer is asking.

The latest offerings

36 Money & Management Entrepreneurs needed

38 Business Management Choose your words wisely 33 Cover image:wildpixel, iStockimages.com

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Jobber News

leading off |

with adam malik, editor » adam@newcom.ca

FOUNDED 1931

Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket.

It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts.

Editor | Adam Malik (416) 510-6763 E-Mail: adam@newcom.ca

GO ONLINE and search for places to buy windshield wipers.

Contributing Writers | Mark Borkowski, Bob Greenwood, Geoff Kirbyson, Donalee Moulton Art Director | Barbara Burrows Managing Director, Auto Group & Ntl. Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca National Sales | Peter Bulmer (416) 510-5203 E-Mail: peterb@newcom.ca Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: denis@newcom.ca Advertising Production Manager, Print/Digital Alicia Lerma (416) 510-6845 E-Mail: alicia@newcom.ca Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca

Jobber News is published by Newcom 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.

Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 5353 Dundas Street West, Suite 400, Toronto, ON M9B 6H8 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Media Inc., 5353 Dundas Street West, Suite 400, Toronto, ON M9B 6H8 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

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MISSING IN ACTION ONLINE

ISSN 0021-7050 Online 1923-3477

What are the first five links you see? If it’s remotely similar to my experience, you saw a couple of big box retailers, an online retail giant and an e-commerce site that I’ve never heard of pop up.

As you scroll through, did your jobber store come up in the search? It didn’t for me either.

There are at least two jobbers within a five minute drive from my home. In between them is a Walmart with its own automotive department. Just down the street is a PartSource It’s troubling with its parent company Canadian Tire a block away. Home going to the Depot is across the street and it even has an automotive websites section. of various Guess where my search results pushed me? Yup, to the jobbers and big box guys. seeing what There’s a lot to be said for search engine optimization. It’s is not being essential if you want to be found online, though it appears offered. few are bothering to invest a nickel in this essential service.

However, given what the vast majority of jobbers have to offer online, it’s probably a good thing SEO is being ignored.

There’s no point drawing customers to your website if your digital shelves are empty.

Let’s take Canadian Tire’s website as an example. I was able to browse all of the wipers it sells. It included guides to ensure I was getting the right one and it told me how many were in stock at any of its locations. I could reserve it online and pick it up in store in a couple of hours – walk in, get what I need and be on my way.

So if I’m the average consumer, this experience is appealing. It is simple and just like shopping at most places online. If that’s the experience of a typical customer, why would they shop anywhere else?

Think about that for a moment. Chances are, the customer is being shown a great experience online from a mass merchandiser. Not you, a jobber and expert in automotive aftermarket products. Not to say the folks behind the counter at Canadian Tire aren’t good at their jobs, but the customer has no reason to believe that you are.

Why would they shop for something as simple as wipers – forget about anything more complicated – from you?

There’s a failure here. It’s troubling going to the websites of various jobbers and seeing what is not being offered. There’s little to entice the average consumer to go beyond the homepage. Too many websites are just there for the sake of being there, it seems. A small percentage – NAPA and some independents – provide the ability to browse the products they sell. The rest list the manufacturers they carry and that’s it.

If you’re waiting to offer value-added services when they come in-store, guess what – it’ll never happen. They’re checking you out online first and being turned off.

Much talk has been centred around going up against Amazon and RockAuto. But it doesn’t look like many are even interested in competing against Canadian Tire or Walmart. Easy business is being lost here. You’re sending customers away by telling them you don’t want their business. That’s not your direct message, but that’s what they hear.

Customers know how they should be treated online. They have expectations. Too many jobbers are falling short.

Forget about not being competitive, most are not even playing the game. JN

JOBBER NEWS / JUNE 2018 | www.autoserviceworld.com

5

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aapexshow.com

over the counter | LORDCO TRADESHOW DRAWS HUGE CROWD

Lordco Parts hosted its 28th Annual Tradeshow

in early April at the Pacific Coliseum in Vancouver, attracting more than 16,000 people to see all the new tools and products from various vendors.

Some of the giveaways this year included a Polaris Razor 900 off-road vehicle from KleenFlo that Bob Newcombe from VSA Highway Maintenance took home. A Richard Petty signed race hood went to PS Motors in Vancouver, and an

e-bike that was won by Glen Elmgren from Alberta.

At the show, Canadian race car driver D.J. Kennington, made an appearance at the Castrol booth to greet fans. His race-ready Toyota Camry was on display by the Gaunt Brothers Racing Team at the front entrance.

There were also appearances from former Vancouver Canucks Dave Babych and Harold Snepsts at the Schaeffler booth to meet with fans and sign autographs. Q JN

CASTROL, KENNINGTON TEAM UP FOR HUMBOLDT Canadian race car driver D.J. Kennington and

oil and lubricants company Castrol Canada came together to support the victims of the Humboldt bus crash tragedy.

It started off with Kennington paying tribute on the track. He raced at the NASCAR’s Bristol Motor Speedway in mid-April with the hockey team’s logo emblazoned on his hood. The St. Thomas, Ont. native told the London Free Press that he spoke to racing team owner Marty Gaunt of Gaunt Brothers Racing and got the green light.

But that wasn’t enough – Kennington and crew members signed the hood and auctioned it off to raise money.

That’s when long-time sponsor Castrol Canada stepped in with the highest bid – US$15,000 was raised and donated to the Humboldt The hood race car driver D.J. Kennington raced with to honour victims of the Humboldt bush crash and then auctioned off.

JOBBER NEWS / JUNE 2018

GoFundMePage campaign, which itself raised more than $15 million. That’s the highest fundraising initiative in Canadian history on the site.

“We have been a proud supporter of D.J. Kennington for over 20 years – when he told us that Gaunt Brothers Racing was donating the hood to raise funds and that the racing team all signed the hood, we immediately wanted to be part of the initiative,” said Natalee Davis, marketing manager, sponsorships and promotions at Wakefield Canada, the Canadian distributor of Castrol products.

“Donating the funds and giving the hood to the Broncos is our way of sharing with the team that, regardless of what sport we participate in, we all felt the tragedy and want them to know we are with them as they heal. Our customers have also taken part in donations for this cause and this is truly a dedication on behalf of the automotive and racing community.” Q JN

NEW CANADIAN HQ FOR DAYCO Dayco has opened a new aftermarket distribution centre to serve Dayco customers throughout Eastern Canada.

The facility in Vaughan, Ont. will double as the company’s new Canadian aftermarket headquarters, as part of the company’s ongoing development strategy.

“This new facility will be replacing the current distribution centre in Concord, and better positions us for growth, while allowing us to continue to provide excellent customer service in the Canadian market,” said Tyler Samagalski, director of sales for Canada.

“Making sure our aftermarket customers in the automotive, trucking and industrial markets have immediate access to our belts, hoses, tensioners and pulleys is our top priority,” he said.

“The new distribution centre will enable us to deliver this objective and provide them with the support they need.”

Samagalski said recent growth in the company’s aftermarket operation prompted a need for new Canadian headquarters.

“We are currently expanding our Canadian team and the new location gives us the capacity we need to continue to do so,” he said. Q JN 7

over the counter | 65 YEARS FOR BARTON

IDEAL SUPPLY EXTENDS SHOW

Barton Auto Parts president Stephen Krieger, left, greets attendees of his company’s tradeshow at the Ancaster Fairgrounds in April.

Barton Auto Parts celebrated 65 years at its recent tradeshow,

Ideal Supply held its two annual tradeshows recently in

which drew in scores of trades professionals to the Ancaster Fairgrounds in southwestern Ontario.

The company, which has four stores in the Hamilton, Ont. area, was founded in 1953 and is preparing for its fourth generation of leadership with is president Stephen Krieger, preparing to hand the reins over to his son, Zak, who is currently director of business operations for the company.

“It’s always a great night,” Zak said. “We always look forward to it.” Q JN

southern Ontario, including expanding its Barrie event for an extra day.

About 3,400 people in all turned out to meet with suppliers and see the latest offerings at both events.

At the end of April, the company hosted its customers at the Barrie Molson Centre for its Northern Tradeshow for two days – expanding thanks to its growing popularity.

In May, Ideal Supply held its second two-day show, the Southern Tradeshow, at the Stratford Rotary Complex. Q JN

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www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

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GAS PRICES BACK ON THE RISE The summer driving season may not be as

busy as previous years as gas prices hit a fouryear high recently.

In early May, the average price across the country was $1.33 per litre, according to GasBuddy.com. That’s up from $1.11 at the same time a year ago.

Vancouver drivers have been hit hardest with gas reaching $1.61 per litre. Relief was anticipated to eventually follow as refineries in Washington state were expected to start up again after maintenance shutdowns, according to The Canadian Press. However, the city’s average summer price is expected to be just a few cents less.

Dan McTeague, senior petroleum analyst at GasBuddy.com, told the media organization that it was possible the average price for gasoline this summer will sit at about $1.33 per litre, with near-record prices in Montreal and Toronto.

Oil prices continue to rise, crossing US$70 per barrel in May, the highest since December 2014.

As a result, McTeague expects consumer spending to take a hit. There will be less discretionary spending, higher inflation rates and fuel premium increases for truck, rail and air transport of goods, McTeague said.

“This will be the most expensive driving season since 2014,” said Tom Kloza, global head of energy analysis for Oil Price Information Service. Q JN

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Total gives away new car Amanda Poyser of Kitchener, Ont., drove away in a brand new Kia Rio EX after winning the Total Canada “’Resist the Cold this Winter with Total Quartz” promotion. The Canada-wide promotion ran from November 2017 to January 2018 and gave away iPad minis and a vacation package worth $6,000. The Total Canada team poses with contest winner whose name was pulled from 35,000 entries. From left, Larry Dalli, Anthony Profenna, Poyser, Qaiser Qureshi, Bart Chimienti, and Pragati Upadhyay.

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9

over the counter | GASKET MAKER CELEBRATES 100 YEARS IN THE INDUSTRY Fel-Pro Gaskets is celebrating its 100th year of being in the automotive industry. Fel-Pro, a brand of Federal-Mogul Motorparts, is a global manufacturer of original equipment and replacement components for automotive, commercial vehicle, performance, agricultural, industrial and other applications.

For its 100th anniversary, the company is having an open house that will take place July 21 at the Fel-Pro engineering,

manufacturing and distribution complex in Skokie, Ill. The event will have many customer-focused activities to pay tribute to the company and honour the automotive industry.

“This anniversary is a celebration of the multiple generations of talented technicians, engine builders, racing teams, consumers and Fel-Pro employees who together have built a truly elite brand by demanding and delivering the very best for every sealing repair,” said Mike Proud, vice president of marketing, Americas, FederalMogul Motorparts.

“Each of our employees is proud of the fact that, even after 100 years, Fel-Pro remains the standard by which all other automotive gaskets are measured. This level of excellence – built through hard work, innovation and customer values continues for each new generation of engine and vehicle technology,” he added. QJN

FORD DROPPING MOST SEDANS FROM LINEUP

The customer wants bigger vehicles and Ford announced plans to focus its efforts on meeting those demands.

It’s also part of a cost-cutting measure from the Detroit-based automaker as it plans to shed all but two lines of its sedan offerings – the Mustang sports car and Focus crossover. That means the CMax hybrid, Taurus, Fusion and Fiesta will no longer be sold in Canada, the U.S. and Mexico.

Ford’s chief executive officer Jim Hackett made the announcement as the company released first-quarter earnings in April. QJN The Fusion and CMax hybrid, seen above at the 2018 Canadian International AutoShow, are being chopped by Ford as it looks to cut costs and focus its efforts on the growing SUV market.

10

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

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over the counter |

VOLVO, CHRYSLER ADD TO RIDE-HAILING FLEETS Volvo and Chrysler recently made separate announcements that they will be providing cars for competing ride-sharing companies.

Volvo announced an agreement with Uber to sell base vehicles compatible with autonomous driving to the ride-sharing company between 2019 and 2021.

Chrysler, meanwhile, announced it would provide thousands of its Pacifica Hybrid vans to Waymo, which is owned by Google’s parent company, Alphabet. This would be in an effort to support the launch of Waymo’s first driverless ride-hailing service, which the company is expecting to open in Phoenix later this year. It’s currently being tested in the city, as well as Atlanta, San Francisco and Detroit.

Volvo said “tens of thousands” of the vehicles would be sold under the non-exclusive agreement. The cars will be developed on Volvo’s fully modular, in-house developed Scalable Product Architecture.

It also said it plans to use the same base vehicle supplied to Uber in its own development of an autonomous strategy. It plans to release its first fully self-driving car in 2021. Q JN

Premium Lines

TECHS GET BAD PRESS

Brake Rotors & Drums Brake Pads & Shoes Hub & Bearing

Photo: Malykalexa, iStockphoto.com

Two stories of technicians behaving badly

have surfaced in recent months, all thanks to dashcam footage.

The first came out of a Mercedes-Benz dealership in Toronto where a video shows employees taking the vehicle on an apparent joyride to get ice cream and coffee. They also use disparaging language about the vehicle owner.

The incident happened a few years ago, but the customer said his attempts to connect with Mercedes-Benz in Canada went unfulfilled, despite the automaker’s German head office instructing him to do so.

The second incident saw two technicians from a shop in Winnipeg fired after they were caught swearing, speeding and mocking a customer’s culture during a road test to check his vehicle’s performance, according to The Canadian Press.

The three-minute dashcam video – which appears to show the techs driving the car at 80 km/h in a 50 km/h zone – was posted online. After the shop owner was made aware of it, he fired the techs.

The Canadian Press reported that the owner attempted to apologize to the vehicle owner, but his calls have not been answered. Q JN

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| AIA events

FIRST WOMAN ELECTED TO AIA EXECUTIVE COMMITTEE

T

he Automotive Industries Association of Canada has a new first. At its annual general meeting at the end of April, it elected the first woman to its executive committee.

Susan Hitchon will be joining new chairman Brent Hesje, first vice chairman Jason Best and immediate past chairman Dave Fifield on the committee as the second vice chairwoman.

That means she will soon sit as the first chairwoman of the group.

The AIA made the elections at the Sheraton Centre in downtown Toronto.

Hesje took the reins from Fifield who served as chairman the previous year. He challenged AIA member companies to be adaptive in the face of incredible change.

The Edmonton-based chief executive officer of Fountain Tire insisted the new realities that the aftermarket will face are “fraught with opportunity.”

Hesje described the goals of the aftermarket as a noble cause.

“Our roads are made safer with full maintenance. The carbon footprint of our vehicles is minimized with full maintenance,” said.

“As for challenges, I think there are many out there. But the one I hear the most about, and the one that will require our collective will to tackle, is about the next generation of workers in our industry.

Who will make up the next generation?”

Fifield identified a number of issues facing the industry, most notably the danger of falling behind on the latest automotive technology.

“The need for ongoing education and training, required to maintain increasingly complex vehicles, is a key concern that I’ve heard many times across our industry,” he said. “We must look for creative ways to help us address this need.”

The AIA also added four new directors to its board of directors: Samantha Coates, Lordco’s vice president of operations; Bob Greenwood, president and CEO of the Automotive Aftermarket E-Learning Centre, and columnist with Jobber News and CARS Magazine; Bob Jaworski, president and general manager of Saskatch14

The new executive committee for AIA Canada. From left, Dave Fifield, Susan Hitchon, Brent Hesje and J.F. Champagne (missing: Jason Best).

ewan-based Auto Electric Service; and Brent Windom, president and chief operating officer of the Canadian Automotive Group at Uni-Select. They will join Rick Orser, Tony Del Vasto, Steve Leal and Simon Weller.

‘‘

It doesn’t have to be price driven – it should be price sensitive – but price is not the only rule of engagement anymore” – PAUL PROCHILO, SIMPLICITY CAR CARE

Executive conference The next day, the AIA held its Aftermarket Conference for executives with 65 people in hand to hear from futurist Nikolas Badminton, author Diane Francis and a series of TEDx-style talks from industry experts.

Vancouver-based Badminton predicted that electric cars and autonomous vehicles will have a tremendous impact on the aftermarket.

If nothing else, the dramatic reduction in moving engine parts will rewrite the rules of automotive maintenance and repair.

“Wear-and-tear parts are a huge part of the aftermarket,” he said. “But this landscape is going to be changed in the future.”

New opportunities will emerge, he added, like converting classic cars into EVs, but he sees massive social and industrial realignment coming.

“We’ll be a high-tech society. This world will work completely differently. Life and mobility will be completely reimagined,” he said.

Francis discussed the similarities between Canada and the United States, highlighting that a physical border doesn’t create a line between cultures and ways of thinking. We share similar values and beliefs like gun control, capital punishment and marijuana legalization, she said, but, “they don’t get what they want because their politics don’t work as well as ours do.”

Francis pushed for greater economic integration between Canada and the U.S. “Because of the challenges we face, because some things can only be solved

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

BY ADAM MALIK

chain has a thorough understanding of the products they’re actually selling. Vehicle technologies are changing every day.”

Entrepreneur and tech visionary Michael Hyatt closed out the conference with a look at how incremental improvements can have a huge cumulative effect on a company. He suggested that big changes tend to be over-valued in the business world.

“It’s much better to aggregate a number of marginal gains over the course of a year,” he said. “You’ll find huge improvements in performance by concentrating on many small gains rather than a few big ones.”

Shannon Spano of Wakefield was named

Futurist Nikolas Badminton was the keynote speaker

winner of the Young Leader of the Year

at the AIA’s Aftermarket Conference for Executives

Award, presented by the Young Executive

in Toronto on April 26. While the rules around auto

Society, at the AIA’s annual general meeting

repair will change, new opportunities will also

in Toronto in April.

emerge, he said.

together and because why not exploit what we already share and like about each other.”

Paul Prochilo of Simplicity Car Care gave the first TEDx-style talk and looked at the challenges – or, as he called them, opportunities – facing the aftermarket.

Whether it was changing customer demands or a shortage of talent, Prochilo said these were instead opportunities for the aftermarket. For example, customers who don’t want to be boxed into a shop’s open hours of 8 a.m. to 5 p.m. may not be as concerned about how much they’re going to pay for repairs and service, creating an opportunity to de-commoditize.

“It doesn’t have to be price driven – it should be price sensitive – but price is not the only rule of engagement anymore,” he explained.

The second TEDx-style talk came from Fifield who explained how Wakefield Canada started thinking about its customer when it developed Think Tank – a device that communicated between

shop and supplier on oil levels and delivered product as needed.

“With this particular program, not only do we enhance our efficiency but we’re able to manage our supply chain more effectively and our customer satisfaction levels go up significantly,” he said. “It is of significant benefit if you’re operating a shop or you’re moving a lot of oil to not have to get on the phone, figure out what you need and when you’ll need it. That’s all been taken away from the customer.”

Ray Proulx, business development manager at KYB, discussed a project to completely re-envision a new eCatalogue for the company in the third TEDx-style discussion. It was designed to include 360-degree images so technicians could verify the part they needed. It also has the ability to be updated in real time.

“One of the biggest challenges we face in this industry is the ability to deliver information in real time. It is data that will help our customers do their jobs,” he said.

“We have to make sure everyone in the

JOBBER NEWS / JUNE 2018 |www.autoserviceworld.com

Young Leader Award Shannon Spano was named the winner of the Young Leader of the Year Award.

The national sales manager, retail, at Wakefield Canada was picked by the Young Executive Society of the Automotive Industries Association of Canada, with the award handed out at the AIA’s Annual General Meeting on April 25 in downtown Toronto.

“I’m extremely humbled an honoured to be recognized in this light,” Spano told the 55 people in attendance.

She praised her employer as having an “entrepreneurial spirit,” providing access to leadership and opportunities to learn.

The AIA noted that Spano’s efforts and contributions with Wakefield have led to the company being recognized as the Canadian Tire Vendor of the Year in the automotive category, in 2015 and 2016.

“Shannon is focused on the development and success of her team above all else, knowing that this makes the greatest contribution to Wakefield as a whole,” the association said in an announcement.

Spano thanked the AIA for “promoting inclusion and engagement” within the industry.

“The automobile might connect us initially, but it really is the people and the passion that is driving our success for the future,” she added. “Participating in the AIA has really given me a broader perspective and extensive network and has made me a stronger leader, and I thank everyone for that.” JN 15

market tracker | motor oil

motor oil SELLING SYNTHETIC IS THE WAY TO GO FOR JOBBERS

M

otor oil used to be as universal as windshield wiper fluid, but those days are now just a speck in the rearview mirror.

Instead, motor oil is becoming increasingly fragmented in its applications, propelled in large part by original equipment manufacturers.

Experts agree it’s crucial for jobbers to pay attention to shifts in the motor oil market and stay on top of them. This includes looking at their inventory and moving to sell more synthetic oil, said Dennis Favaro, Toronto-based marketing manager at Valvoline Canada Corp. If they don’t, they’re missing out on an excellent opportunity to build loyalty with their

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customers, even though synthetic is more expensive and trickier to sell.

“You can focus on selling conventional oil but if you’re ignoring the synthetic side, you’re not spending enough time on that side of the market. There are headwinds in selling it that make it more difficult but you’ve got to pay attention to the growth in synthetic. You need to get a bigger chunk of the (overall) market.

“

You’re going to make more margin,” he said. “There’s a little bit more of an effort required but there’s a return on that. If you’re so focused on moving volume in conventional oil, you’re just leaving money and volume on the table.”

Ian Hutchison, Toronto-based marketing manager of Wakefield Canada, agrees. He said while premium oils are more costly, in many cases they offer more specifica-

You can focus on selling conventional oil but if you’re ignoring the synthetic side, you’re not spending enough time on that side of the market.

”

– DENNIS FAVARO, VALVOLINE CANADA CORP.

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

BY GEOFF KIRBYSON

“

As the car manufacturers follow different strategies in terms of engine design, there is an increasing number of different oil specifications.

”

Photos: Morsa Images, iStockphoto.com

– PETER SZARAFINSKI, LIQUI MOLY

tions in a given grade. This means service and repair shops can carry less inventory.

“Now more than ever, many OEMs demand a specific oil. The result of using a non-compatible oil can be catastrophic,” he said.

For example, if Volkswagen and BMW M-series vehicles aren’t filled with the correct oil, they risk premature valve-train wear, bearing damage and high oil consumption.

One of the industry’s biggest challenges is low-speed pre-ignition (LSPI) as more and more vehicles are entering the aftermarket with gas-direct injection technology.

“This is a very real issue and, if not prop-

erly addressed, can result in catastrophic engine failure. It’s very important for jobbers to check to be absolutely certain the oils they are selling workshops have a formulation designed to address GDI turbo technology,” he said. “It’s also very important to confirm the product is actually approved by the OEM and doesn’t just meet the specs. If an oil claims to meet the specs, it doesn’t necessarily mean it’s actually approved by the OEM for use.”

Hutchison said the standards set by CAFE (Corporate Average Fuel Economy) drive the majority of the changes in oil specifications and the proliferation of grades. In an ongoing quest to achieve higher performance and the ever-stringent fuel economy standards, manufacturers are demanding much more of oils in lighter and lighter viscosities.

“Lighter viscosities allow less resistances as an engine turns over and thus better mileage and power but much more is demanded of the technology contained in base stocks and additives of the oils,” he said.

In some cases, the new specifications are defined by the manufacturer, such as General Motors and the Dexos Gen2 spec, and in other cases, such as Jaguar, Land Rover, Volvo and Volkswagen, the manufacturer co-develops products with the oil manufacturer.

Hutchison recommended that jobbers and service shops reach out to the oil sales reps in their territories to learn more about the changes happening with motor oil and to ask about training opportunities, both in person and online.

Another challenge in the motor oil market is there are two different approaches used in different parts of the world. The American Petroleum Institute is the lead

JOBBER NEWS / JUNE 2018 |www.autoserviceworld.com

organization south of the 49th parallel for developing new standards and U.S. car manufacturers have to follow with the design of their new engines.

But in Europe, vehicle manufacturers design new engines and define what properties the oil will require for them and then the oil industry sets out to design a new oil to meet those specifications.

There are two main trends that jobbers need to be aware of, according to Peter Szarafinski, Germany-based head of media relations at Liqui Moly. First, motor oils are becoming thinner because thinner oil is more desirable as it has less friction and vehicle engines consume less power for circulating it. This improves fuel economy and reduces emissions.

He cautions that the engine must be designed for such a thin oil as using it in a conventional engine would lead to excessive wear and severe damages.

Second, oil is becoming more specialized, enabling “strongly optimized” engines to reduce emissions. Such engines require a special oil.

“Filling in any oil would be like installing a wrong spare part and may cause serious problems. As the car manufacturers follow different strategies in terms of engine design, there is an increasing number of different oil specifications.

Sometimes several specifications can be covered by a single type of oil but other specifications are so unique that they require a separate type of oil of its own,” Szarafinski said.

Using oils that are approved by vehicles manufacturers is the best way to ensure service and repair shops are working with the right products and on the right side when it comes to complaints or technical continues on page 18 problems.

17

market tracker | motor oil

“

If you’ve got a scratch on your cylinder, the nanotechnology will be able to repair the scratch. If you’ve got rust, the oil will repair where the rust has attacked the metal.

”

– ALEX BOLDUC, TOTAL CANADA

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Szarafinski said jobbers should be pushing premium oils because there is far less upside in selling conventional oil.

“You will always have customers who are interested in the lowest price only. But these customers often are neither loyal nor can you achieve an interesting margin with them. To focus on these customers only would make you miss a lot of business opportunities,” he said. “Of course, the higher price of premium products must be justified and whoever sells them – the jobber as well as the shop – should be able to explain the benefits.”

Szarafinski described motor oil as a “highly specialized fluid spare part” which needs to fit precisely to a specific engine. He recommends jobbers read up on oil guides to see which oils are suited for specific vehicles and engines.

Those fluid spare parts are going to be increasingly high tech, too, it’s just difficult to tell when they’ll get the green light. Andre Bolduc, Quebec City-based technical commercial senior consultant at Total Canada Inc., said the approval process at the American Petroleum Institute takes longer than he would like.

“We are ready to come out with a product that will solve the low-speed pre-ignition on direct injection engines (problem) that can destroy your engine. The manufacturers want us to offer (API)-approved products so there is a certain quality standard in the market,” he said.

In the not-too-distant future, motor oils will have remarkable healing powers thanks to nanotechnology, which features microscopic diamonds that act like ball bearings.

“If you’ve got a scratch on your cylinder, the nanotechnology will be able to repair the scratch. If you’ve got rust, the oil will repair where the rust has attacked the metal. It will be fantastic for the longevity of everything we have in our lives. We’re not going to offer it now because it hasn’t been approved yet,” he said.

Motor oil has certainly come a long way. Regulatory requirements and changing vehicle technology mean it will be going even further. Jobbers need to constantly be aware of what’s taking place in order to understand what customers need and know the right products to recommend – or risk being left in the customers’ review mirror. JN

“

Now more than ever, many OEMs demand a specific oil. The result of using a non-compatible oil can be catastrophic.

”

– IAN HUTCHISON, WAKEFIELD CANADA

18

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

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cover feature | Retail Intelligence

Connecting the dots between online & retail

A website

A

Jobbers need to invest online, but also in store ‘to complete the circle’

reviews

A

R

emember the good old days when you’d go to a store wanting to buy something, search and search and search for it, find it (hopefully), pay for it and leave?

Those were good times, right?

Well, that was just a few years ago and consumer habits have changed dramatically. Nowadays, a customer’s journey “is a whole ecosystem of experiences,” said John Kinsella, vice president and senior consultant at FitForCommerce, a consultancy company in the field of e-commerce and omnichannel businesses.

“There are all of these touch points.”

Customers bounce around from mobile experiences to browsing websites on their computer to calling a contact centre to checking out social media to e-mail.

And they’re not just doing this with your brand – they’re bouncing in and out of yours, checking out your competition and third-party resources.

So they may start on Company A’s social media page before heading to its website to find the product that interests

20

them, then jump to a reviewer’s website to research the product further, then back to Company A’s website to have another look at the item to make sure it’s exactly what they want and then to a competitor’s website to compare prices. They might call Company A to get more details and then call its competitor, Company B, to see if their advice matches up or is better.

Finally, after all of that, the hope for Company A is that the customer comes back to them to buy the product, whether it be online or in-store.

Exhausted yet?

“The takeaway from this is: The path is not linear,” Kinsella said. “The customer is not coming in on a straight line like when I was a kid and buying bubble gum. They’re going all over the place and they’re super informed. They know they can look inside and outside your brand, check product information, prices, ratings and reviews.”

Buying automotive parts is a little different than buying a pair of jeans. The customer’s journey in the aftermarket world www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

B website

BY ADAM MALIK

A website

B

C A

Most important to this whole process is making sure that your brick-and-mortar and your e-experience is connected with each other perfectly – one starts a transaction, the other one completes it.

– JOHN O’DOWD, NAPA

website

C A

is not yet the same and figuring out how to make it similar to other industries is still a work in progress.

“I don’t think any of us have got the full answer yet,” said John O’Dowd, Montreal-based vice president of marketing at NAPA. “Where it’s going to end up, we’re just not sure.”

That’s because the business of selling automotive parts is an operation steeped in a century of tradition. So while other industries like clothing and electronics may be moving to a digital-focused environment to sell their products, the aftermarket may not follow suit in the same manner.

“If you’re dealing with automotive parts, it’s application-driven,” O’Dowd said, predicting that the market will likely end up somewhere between a full online experience and the traditional one with an engaged, end-to-end supply chain.

“I think the solution for our

JOBBER NEWS / JUNE 2018 |www.autoserviceworld.com

business, at least from our perspective, will end up somewhere in the middle and maybe a hybrid,” he added. “We may have some products that we do the true online experience with customers, and then a large proportion of product that ends up with you reserving online – you even pay for it online – but come and pick up in-store so that we can help you out with some tips and help to put it together.”

Jobbers can’t just sit idly by, hope everything falls into place and still wind up with the sale. There’s an opportunity here for businesses to jump in, serve customers online and keep the customer within their virtual – and physical – walls.

After all, the customer may not always know what they need.

“They need support as they go through this because this path is not easy and it’s a little confusing,” Kinsella said.

But the help he’s talking about, he told attendees of AAPEX in Las Vegas in the fall, isn’t finding the price sticker. continued on page 23

21

Photo: wildpixel, iStockphotos.com

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cover feature | Retail Intelligence It’s about emotional help. A customer goes through a lot of feelings when buying a product, such as frustration and happiness. You as a business need to find out at what step the customer “is not feeling so well,” correct the issue and help them move on to the next step that eventually leads to them buying from you.

“If you can interject the right content and the right support as customers are going through this journey, you can help guide them to the next step,” Kinsella said.

He gave an example from his time at home improvement retailer Lowe’s. Customers may think they just need one item for their task but not realize others are needed as well. So the company created a bundle that showed the entire project and all of the products needed, including how-to videos and advice on how to tackle whatever they were doing.

“When [the customer] got in the headspace of feeling confident, when they got excited, when they felt empowered to take on the project, then they were off and running. And we wanted them to feel like they could succeed,” Kinsella said.

“And when they succeeded, we were the beneficiary because they had larger basket sizes, repeat visits and improved loyalty.”

A positive experience online translates to in-store success, O’Dowd said. The advantage of auto parts sales is that many customers need their product quickly so they’re willing to buy or reserve online and pick up in-store. It’s a great way to sell more items because now that foot traffic is in the building.

“We can hit the customer on the web portion where they can do their shopping,

“

We need to deliver on the retail experience. As much as we think we’re doing a great job with our transactional website which has a lot of information, we set the table for when they walk into the store.

”

– JOHN O’DOWD, NAPA

their browsing, get their tips – we try to put a lot of content on our site – and once they reserve and get to the store, then complete the customer experience at that point,” O’Dowd said.

In mainstream retail, such as clothing stores and the like, strategy around brickand-mortar stores is changing. They’re reducing inventory since more purchases are being made online. In auto parts sales, it’s a different situation since adequate product stock needs to be on hand for more immediate sales. But adding a pleasant online experience for your customers makes them more likely to shop with you.

“Most important to this whole process is making sure that your brick-and-mortar and your e-experience is connected with each other perfectly – one starts a transaction, the other one completes it,” O’Dowd said. “If you want to complete the circle, you’ve got to make sure that both of them deliver a world-class customer experience.

If there’s a failure at any point in that circle, well, obviously you’re no better off.”

Investing online is a must these days – that’s where most customers connect with your business first – but investment in your physical locations is also necessary.

“We need to deliver on the retail experience. As much as we think we’re doing a great job with our transactional website which has a lot of information, we set the

table for when they walk into the store,” O’Dowd said. “Their expectation is, ‘While that website is neat, it’s got everything I need, so let’s hope I get the same experience when I get to the store.’”

Your staff is best suited to know what will help boost the experience of customers in-store, Kinsella said. Your counterpeople see and hear from customers all the time, so they should know what they can do to make the customer experience that much better. The idea is to be a destination and a resource for customers for not just products, but inspiration.

“When customers feel trustful and they feel connected, this leads to loyalty,” Kinsella said.

Creating and developing all of this content is worth it because it can lead to dollars. If you have a how-to video, for example, it can include a shopping list on the side with a link that takes users to the product page so customers can add it to their cart and buy it. Think of the potential boost in sales.

“Omnichannel shoppers buy three times as much,” Kinsella said. “So think about it: They’re researching online before they come in the store so they’re prepped and ready to buy. They are using mobile devices in the store to research and to learn about products, so they’re continued on page 24

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cover feature | Retail Intelligence

“

So the competition then becomes: Who’s got the nicest, who’s got the easiest site to manoeuvre and who’s got the most inventory.

”

– JOHN O’DOWD, NAPA

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more informed and more confident.”

We’re in an age of tech savviness.

Customers shop from mobile phones and the aftermarket has to provide the tools for them to make the experience pleasant. Jobbers need to be a resource for shoppers.

“These customers are expecting you to do a good job with this,” Kinsella said They also want you to give them solutions quickly. You have just a couple of seconds to grab their attention and show that you are capable to give them what they want.

“They want to understand what you’ve got, and get to their product in a minimum number of clicks,” Kineslla said.

O’Dowd agreed. “They don’t want to spend hours there. They know what they’re looking for and they just got to find it.”

Kinsella gave the idea of partnering with a weather service – if it’s raining, you can direct customers to wipers. Heading into summer or winter, you can promote products for the season, such as batteries.

Accelerate the product search with filters – pick by car, certain kind of part, sort by ratings or what’s available in-store.

It’s all part of the effort to differentiate yourself. Today’s competition isn’t just the other jobber down the road – it’s anyone who offers a better experience. Customers are being shown a positive experience by big online retailers. They want to have a similar experience anywhere they shop, whether it’s for clothing, appliances or auto parts.

“They’re being trained by the very best retailers right now about what a good experience is like. They’re being trained by Amazon about what excellent navigation, search and product recommendations are. They’re being trained

by Williams-Sonoma about what great content is. They’re being trained how to have fun shopping by Dollar Shave Club,” Kinsella said.

“If you don’t create that great experience, that fun experience and that easy

experience on the website to start with, certainly [the customer] will end up somewhere else and they’ll go to another site where they make it easier than you,” O’Dowd said. “So the competition then becomes: Who’s got the nicest, who’s got the easiest site to manoeuvre and who’s got the most inventory. Because, obviously, you’ve got inventory and you’ve got pricing that you’ve got to think of. You have to deal with that plus make it easier for customers.”

There’s another part of the equation to consider. Having stuff online is nice, but it’s one end of the experience.

“It’s also about the delivery experience,” Kinsella said. “By this I mean: how are you serving the sale around things like buy online, return in-store [or] buy online, pick up in-store? Give your customers online the ability to pick a store and look at what the inventory levels are so they can manoeuvre effortlessly between the channels. These are different ways you can differentiate.”

O’Dowd estimates between 30 and 40 per cent of customers who reserve products online to pick up in-store on NAPA’s site come via mobile making it a “mandatory” capability.

“People don’t have time to sit in front of a computer,” he said, especially do-it-yourselfers who may come across the need for an item while not inside their home.

As the world goes increasingly digital, jobbers that prefer to drag their feet will lose out. However many years ago, people walked into businesses that had attractive storefronts. That same principle holds true today, except now people are attracted to your website first. If you’re not making your store appealing to customers online, they’re moving on the next jobber.

“We need to make sure that our window creates a great experience, an easy experience and a fun experience,” O’Dowd said. “Once we do that then the whole chain follows and we complete the circle with purchase in-store.” JN

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

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cover feature | Retail questions

Questions to ask – and avoid – with DIY customers

H

amlet had but one question to ask: To be or not to be? For jobbers and counter staff hoping to help customers do it themselves, one question will simply not suffice. Getting the answers to numerous, often tricky, inquiries is essential to making a successful sale – and building a long-term relationship.

“When speaking with the customer we ask a lot of questions – year, make, model, engine size and what part they are looking for,” said Rhonda Hansen, store manager of Auto Value in Red Deer, Alta.

Asking questions, she noted, is only the first step. “We listen for any extra details …

“

to ensure they are getting the correct product.”

Listening is an essential sales skill, and it requires more than hearing what the customer says. It requires active listening.

Too often the customer’s words are heard, but the broader context is overlooked.

What is the customer actually conveying?

Are they confident about this do-it-yourself project? Are they subtlety looking for more guidance from you?

Understanding context requires listening intently, minimizing distractions and retaining the information the customer has shared.

“The better you listen, the better you

When speaking with the customer we ask a lot of questions – year, make, model, engine size and what – RHONDA HANSEN, AUTO VALUE RED DEER part they are looking for.

26

”

communicate,” Emilia Hardman said in her book, Active Listening 101: How to Turn Down Your Volume to Turn Up Your Communication Skills.

According to Hardman, the art of active listening makes the customer feel valued, an outcome that goes beyond any single sale and potentially leads to many more.

Although listening is our most frequently used communications skill – we spend about 45 per cent of our time doing this – research indicates we don’t do it well, often retaining only 25 per cent of what we’ve heard.

Some of the reasons we don’t listen well, Hardman noted in her book, include wanting to hear ourselves talk, not being truly interested in the conversation and feeling the pressure of time. When counter staff can focus in on what the customer is saying, however, we are more likely to make a sale that meets their

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

Photos: MicroStockHub, Nicolas; iStockphotos.com

It’s all about listening to the customer to make a better sale

BY DONALEE MOULTON

needs and make an important statement about how we treat customers.

Listening actively is a sign of respect, even if the customer isn’t consciously aware that is what is happening. For example, very self-assured customers (you know them: the know-it-alls), aren’t looking to have two-way discussions. They’re looking to pick up the parts they believe are exactly what they need, even if they’re wrong. With customers like this, active listening is still essential.

“Whether a customer knows it all or not, we treat them with respect listening and accepting their answers to questions as fact,” said Hansen.

But it is important to go beyond listening and accepting, she added. “We ensure we are giving them all instructions available with what options are available.”

Inherent in understanding a customer’s needs is asking questions to flesh out that understanding. Tony Alessandra, author of 27 books, including Non-Manipulative Selling, based in Carlsbad, Calif., recommended starting with broad questions then getting more specific. He suggested keeping questions simple and straightforward – and avoiding “yes” and “no” queries.

Digging into what the customer wants to do with and to their vehicle is important. For repeat customers with knowledge about their DIY project, using industry jargon is a plus. However, for new customers or those stepping outside their confidence zone, this may only serve to make them feel less welcome and less confident.

When it comes to getting the answers you need to help customers, an obvious starting place is with the five Ws – who, what, where, when, and why – and their long-time partner, how. For instance, questions might include, “What specific problems are you experiencing with your car? Why do you want this upgrade for the vehicle? How long to do you have to work on the car at any one time?”

The worst question to ask, according to PreneurCast, published online by an Australia-based marketing firm, is this: Can I help you? The oft-ask inquiry first, is expected, so doesn’t make your store or your service appear original. It also opens

Active listening 101 Listening requires more than a keen ear. To actively listen to what you customer is saying, you need to: • Pay close attention to their words, their tone of voice and their body language.

• Let them know you’re listening. Lean in.

Take notes. Nod. • Offer an appropriate response or ask a relevant question.

• Don’t rush to conclusions – or judgment.

the door to an answer you don’t want to hear: No. Instead the marketing firm recommends you lead with a more original and relevant question such as, “What brings you in today?” Other openers include asking about the type of project the customer is working on and if they have used the part before.

Listening intently and asking relevant questions doesn’t mean you are going to like everything you hear. Sometimes customers want what isn’t good for them or their vehicles. When a customer is insistent on buying something that isn’t recommended, you have no choice but to make

“

the sale, says Hansen. But, she added, this isn’t all you should do.

“We make sure they are informed about our return policy and give them as much information as required,” Hansen said.

The Customer Service Zone, established

by Robert Bacal, a consultant based in Casselman, Ont., suggests using a soft touch when dealing with the know-it-all customer. Without misleading the customer or reinforcing incorrect information, make the person feel good about their confidence and themselves. If you need to correct them, do so gently. Challenging their knowledge, or their sense of right and wrong, will not be effective. And for your own peace of mind, remember not to take the attitude personally. This really isn’t about you.

While understanding the customer’s needs and the context for those needs, it’s equally important to make sure the customer is well informed – even when they don’t particularly want the information you have to offer or feel your questions are valid. It never hurts to pave the way for a return, especially when you believe the client is heading in the wrong direction.

Take, for example, selling a water pump for a 350 motor. Sales like this can be a challenge, Hansen said. “Many customers still believe that year doesn’t matter.”

As a result, she noted, they will often purchase the wrong part despite your best efforts and return to the store disgruntled.

“We always take the return with a smile,” she said.

Not all DIY customers, of course, come in with the answers. They’re looking to jobbers and counter staff to help guide them through a morass of options. Questions help here, but take-away reading material is also much appreciated.

“We do our best to inform with as much information as available. We will print off information from AllData and suggest available websites to do-it-yourself customers,” says Hansen. JN

Whether a customer knows it all or not, we treat them with respect listening and accepting their answers – RHONDA HANSEN, AUTO VALUE RED DEER to questions as fact.

JOBBER NEWS / JUNE 2018 |www.autoserviceworld.com

”

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| Data Access

BY ADAM MALIK

From left, AASA vice president Chris Garner moderates a discussion between Tim Corcoran and Charley Johnson, co-chairs of the Vehicle Data Work Group.

AASA F

iguring out a neutral marketplace-based solution to accessing vehicle data is a critical issue facing the automotive aftermarket — perhaps even the most important, according to some.

As vehicles become more complicated, it appears that the ability of the aftermarket to get the necessary data to repair them will also become increasingly tricky.

The industry needs access to vehicle data in order to service and repair advanced technological vehicles and the Automotive Aftermarket Suppliers Association’s Vehicle Data Work Group is advocating for a solution.

The group is co-chaired by Charley Johnson, CEO of OptiCat, and Tim Corcoran, director of strategy and vision at ZF Aftermarket. As part of a panel discussion at the AASA’s Vision Conference in Chicago in March, the pair outlined their goal of creating a neutral marketplace solution where multiple stakehold-

wants solution to vehicle data access VISION CONFERENCE ALSO EXAMINES THE WAVE OF TRENDS FACING THE AFTERMARKET

ers can access a broad range of potential vehicle data information – including diagnostics, OE repair information, vehicle and driver history and vehicle-to-vehicle data.

“I believe it’s the most important single issue we have in the medium term,” Johnson told attendees. “We must develop a North America-owned solution, whatever that might be, and we have to come down on it together. We have to find a

“

I believe it’s the most important single issue we have in the medium term.

We must develop a North America-owned solution, whatever that might be and we have to come down on it together

”

– CHARLEY JOHNSON, AASA VEHICLE DATA WORK GROUP

way to work together and this requires commitment.”

That commitment needs to be based on the desire for a neutral and secure marketplace solution that would bring data to various users in a secure environment, based on agreements between data providers and users. The data would not be owned by any entity, but housed in this solution, which would act as a marketplace for potential data suppliers and users to come together effectively.

“We have a vision, and this vision is: we’d like to provide a marketplace solution that can help and that can encourage people – the suppliers of data and the users of data – to have a place they could go that would be efficient, secure, trusted and owned by the industry to be able to share this information going forward,” Johnson said. “Our idea is that if we had this capability in place, it could have advantages for everybody, including continues on page 30

JOBBER NEWS

/ JUNE 2018 |www.autoserviceworld.com

29

| Data Access

Bill Long, AASA president and COO, speaks at the group’s 2018 Vision Conference,

From left, Kumar Saha, Mark Barrott and Gregg Melick represented various viewpoints on upcoming aftermarket trends at Vision.

OEMs, distributors, users of data, analytical firms – everybody.”

He didn’t rule out seeking government involvement in making this vision happen.

“We recognize that legislative solutions may be necessary to clear this up so that everybody can agree to the right approach going forward. And we’re prepared to go in that direction too, if that’s really necessary,” Johnson said.

The details are still to be ironed out. The work group hopes to have an update by AAPEX in Las Vegas at the beginning of November. Johnson imagines the solution to be similar to a European model where a cloud-based portal sees data providers supply information through one end to consumers who get access on the other side.

Ideally, this can be worked out on a global scale. With the aforementioned European model already in place and having a similar one set up here means that it can be expanded elsewhere. To be done otherwise would be a nightmare.

“Imagine having a different set of protocols in every country you want to do business in,” Johnson said. “That would be pretty daunting, I think.”

Being able to access this data would benefit distributors greatly, Corcoran explained. As more connected cars hit the roads or dongles are added to older ones, real-time vehicle information is at the aftermarket’s fingertips – geographic informa30

tion, weight load, speed and so on.

“Now you have some very interesting data sets that are not available today,” he said. “You can do some predictive analytics. You can understand variables that don’t happen today because you don’t have access to real-time data. Finally, you can come up with predictive analytics that allow you to be at the right place at the right time to appeal to that customer.”

That means distributors can predict what parts will be needed when and ensure they’re all available for when the phone rings.

“It also provides real time data of what is being operated, what vehicle, what type, what year … all those parameters you use for inventory planning are now real-time,” Corcoran said. “You don’t have to make a guess on what is being used or what failed. That really makes a big difference.

Having the inventory at the right place at the right time is what gives you a sale.”

“So there’s a big opportunity here for us to work in an even more integrated way as an industry,” Johnson said. “If we don’t have our own portal, then we’ll have the wild west. It’ll be much more complex and much more difficult.”

Three dragons A Wall Street analyst, an aftermarket business advisor and an industry expert walked into a bar … Actually, they gath-

Jordan Hettinga of eBay Motors discussed how the online merchant wants to work with suppliers, not of compete against them.

ered on stage at the conference to give their unique views of the aftermarket for the coming years.

Mark Barrott, a principal with accounting and business advisory firm Plante Moran, Gregg Melick, a partner with research firm MoffattNathanson, and Kumar Saha, director of mobility with Frost & Sullivan – billed as “the three dragons” – represented the various viewpoints.

Barrott, the aftermarket advisor, noted steady growth for the aftermarket for the next decade. Everything is stable in the near future before a “tidal wave” of change comes through. Mobility-as-aService, for example, is projected to go from a $27 billion industry in 2017 to a $3.4 trillion one in 2050. Miles travelled is also expected to boom.

Wall Street analyst Melick predicted that in-store retail sales of auto parts will go negative in 2025. Books and electronics went negative long ago, and it’s just a matter of time before DIY automotive parts do the same, he said. The DIFM side, he added, will hold off until 2030.

Saha, the industry expert, said to expect aggressive competition from dealers for customers as they face their own set of challenges.

“That’s going to be a very big outcome of the slowdown of vehicle sales we’re going to see in the next three years,” he said. JN

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

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show preview |

NACE

August 8-10 GEORGIA WORLD CONGRESS CENTER, ATLANTA

AUTOMECHANKIA ATLANTA PREVIEW

August 8 & 9: 10 a.m.-4 p.m.

August 10: 10 a.m.-2 p.m.

A

After two years in Chicago, the third edition of NACE Automechanika will head to Atlanta for 2018.

The trade show – billed as the largest event dedicated to high-end technical and management-related training for automotive collision and service repair shops – will be held at the Georgia World Congress Center, located in the heart of downtown Atlanta next to Centennial Olympic Park, the College Football Hall of Fame and newly-opened Mercedes-Benz Stadium, home to the Atlanta Falcons of the National Football League.

This is the second year both the NACE and Automechankia sides will co-produce the event. Shop owners, managers, jobbers, technicians, distributors are all recommended to be there. There will be hands-on technical training, but also opportunities to experience new technology, attend various learning forums, learn from the original equipment manufacturers and take part in a few co-located events.

While much of the focus will be on collision and mechanical training, there will be opportunities for management training. Courses include how online reviews impact your bottom line, keys to lasting success and profit, how to grow your network, have better phone calls and creating a great experience for the customer.

On the show floor, there will be the Innovation Zone with the industry’s most innovative automotive products and services – whether it’s tools, packaging, or technology. The Spray Zone will allow you to test out the latest products, tools and accessories. Tool Alley will showcase the latest tools entering the market. Truck Competence will showcase the latest in

SHOW HOURS:

heavy duty vehicles, aftermarket parts and training/demonstrations. All are available during show times.

FORUMS The Automotive Service Association will host the Advanced Technology & Diagnostic Repair Forum from 1-6 p.m. on August 8. The forum will focus on new technology, such as sensors, cameras, accident avoidance systems, wireless communications and more.

There will be the Collision Industry Conference the day before Automechanika, on August 7 from 1-5 p.m. with a reception following. It will pick up the next day at 8 a.m. The conference will see participants discuss and explore challenges shared by all industry segments.

JOBBER NEWS / JUNE 2018 |www.autoserviceworld.com

EVENTS On opening night, August 8, from 6-9 p.m., registrants can attend the opening night welcome reception for free.

On the second day, August 9, the Rocking’ Rides Car Show reception will be held from 10-4 p.m. It costs $25 dollars, with all proceeds going to support local automotive schools At the same time, the MSO Symposium will be held for $249 to attend. Discussions on issues facing the industry will be the focus of the event.

The Collision Repair Education Foundation will hold its annual golf tournament on August 6. It’s the 17th edition of the fundraiser and will be held at the Trophy Club of Apalachee, just north of Atlanta.

Cost is $275 per person. JN 33

DA 2018 AIA CANA M HR SYMPOSIU

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• A presentation from Keynote Group Inc., our partner who helped us develop the toolkit. They will dive into how to implement best HR practices in your workplace through practical solutions and examples so \RX FDQ EHJLQ WR PDNH XVH RI WKH WRROV DQG WHPSODWHV ZKHQ \RX UH EDFN LQ WKH RIoFH • A panel discussion that will give insight on the importance of hiring women as part of your business strategy, in turn improving your business performance and helping you to maintain a competitive advantage.

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Moog complete knuckle assembly Moog increased the number of applications for its complete knuckle assembly. It now offers 24 parts for 27 applications. The vehicles that can use these applications are 2011-2013 Ford Transit Connect (LK013, LK014), 2001-2012 Ford Escape, 2007-2011 Mercury Mariner, 2001-2011 Mazda Tribute (LK015, LK016), 1992-2001 Toyota Camry 4-cyl. (LK019, LK020), 1992-2001 Toyota Camry V6 (LK021, LK022), 2006-2007 Toyota Highlander Hybrid, 20042009 Lexus RX330/RX350, 2006-2008 Lexus RX400/RX400H (LK023, LK024), 2001-2007 Toyota Highlander V6 (LK025, LK026), 20012007 Toyota Highlander 4-cyl. (LK027, LK028).

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M12 Rivet Tool Milwaukee has announced the release of its new M12 Rivet Tool. It is the first cordless rivet tool designed for the professional trades. The tool uses advanced M12 technology which allows two times faster tool rivets and requires 65 per cent less muscle effort than regular hand tools. It uses a scotch yolk mechanism, which allows the tool to deliver a large amount of force in a more compact package.

The tool is powered by M12 RedLithium batteries, that provide more work per charge and more work over pack life.

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OIL CHANGES MADE EASY. THE NO PAIN DRAIN™

SSI’s new LED worklights Superior Signals Inc. has launched its new SYTLED1400 series and SYTLED2880 series LED worklights. The SYTLED 1400 series have nine LEDs with a light output of 1100 lumens. The lights come in either a flood or spot beam pattern and can be purchased in a round or square style.

The SYTLED2880 series have 16 LEDs with a light output of 2000 lumens, and like the other work lights they come in either a flood or spot beam pattern that use a square design.

The new worklights come with stainless steel mounting hardware and are pedestal mounts with wire leads.

Superior Signals Inc. www.superiorsignals.com

JOBBER NEWS / JUNE 2018 |www.autoserviceworld.com

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money & management |

LOOKING FOR LEADERS OF THE ENTREPRENEURIAL MOVEMENT he tendency for Canadians towards risk aversion is a serious matter in this country.

The jobber industry is full of entrepreneurs, and it is you who are poised to lead Canada out of its disastrous economic situation. In fact, the onus is on you, the passionate business owner who is not afraid to put ideas and money on the table.

Much of your staff – managers, sales team, counter staff – are the future entrepreneurs of Canada. Some will be wildly successful, some will fail. Some will try again and again until they find their place in the world of successful business ownership.

Canada is one of the most technologically advanced countries in the world today. But through many factors like poor planning and downsizing, we have suffered arguably more than any other country in the world in recent times.

The number of truly gifted professionals that are left unused in Canada or taking permanent flight down south – the so-called ‘brain drain’ – is, quite simply, a national embarrassment.

This is why entrepreneurialism is so important.

This is a call to those who can help capable individuals left by the wayside to rise from the rubble and lead Canada to the forefront of international growth. We are looking for a ripple of productive economic activity.

Every piece of the economic puzzle exists in Canada. We have the know-how and the investment capital, but what we lack is the gumption to take the bull by the horns and realize our opportunities. The economic pie is massive and if Canada is to survive the next century, it will need to grab a significant piece.

The issue is clear: our survival depends not on government intervention, but on the initiative and ingenuity of Canadians. Entrepreneurship is about creating wealth. It is about building and growing much more useful enterprises. New wealth and economic growth in the future will come from commercializing new technologies – and the automotive industry is not short on these – and growing our smaller and medium-sized companies into international competitors. To those individuals interested in exploiting opportunities, there is a

Photo: wildpixel, iStockphoto

T

multitude available.

Each one of us must decide whether we are interested in aiding in the creation of a vital and organic economic community or simply continue in accumulating, rearranging and manipulating wealth.

Experience shows us that real wealth lies in products that are tradable and exportable. This means a great deal more to an economy than inflated real estate prices.

The question must be asked as to what will be done to promote the existence and success of such wealth creating enterprises in Canada. An extra effort must be undertaken to explore the options of management buyouts, joint ventures, technology transfers, and most of all, start-ups.

Entire divisions are being cut from fat corporations no longer interested in mass production, leaving many attractive and more lucrative market niches upon which to capitalize. It is precisely these types of wealth creating ventures that will drive the Canadian economy and its tax base.

Real estate flips do not create real wealth. We in the industry have been too preoccupied in the safe money game. There is a growing urgency that we get our hands dirty with the real crux of economic activities.

We must help and support start-up ventures. Do not wait – get involved today. JN

Mark Borkowski is president of Mercantile Mergers & Acquisitions, a mid-market mergers & acquisition brokerage.

Contact: www.mercantilemergersacquisitions.com

36

The issue is clear: our survival depends not on government intervention, but on the initiative and ingenuity of Canadians.

BY MARK BORKOWSKI

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

advertiser index |

Do you have to share?

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An upcoming event? A letter to the editor?

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Send it to adam@newcom.ca.

Auto-Kool . . . . . . . . . . . . . . . . . . . 10 www.auto-kool.com AutoServiceWorld . . . . . . . . . . 37 www.autoserviceworld.com Bestbuy Distributors . . . . . . . 11 www.bestbuydistributors.ca Brake Parts Inc. Raybestos . . . . . . . . . . . . . . . . . . . 31 www.raybestos.com Chevron . . . . . . . . . . . . . . . . . . . . . 32 www.canada.havoline.com

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37

business management |

CHOOSE YOUR WORDS WISELY hange seems to be so difficult for this industry to embrace. Yet, we must change or die.

We are used to that type of statement referring to business strategy for the jobber’s day-to-day operation and the business’ future financial prosperity.

But there are other changes that are necessary.

Specifically, there are some uses of business terminology that should be cleaned up if you expect a proper image with the people to whom you sell.

Some jobbers adapt to new industry terms with ease, fully understanding the reason why – perhaps technological or technical. Others seem to stick their head in the sand, wanting to ignore the obvious. One important example that comes to mind: being a technician, rather than a mechanic.

The technician has a high skill level of diagnostic abilities and knowledge. They spend a tremendous number of hours each month to perfect and maintain their skill level.

It is amazing how many jobbers still refer to everyone in the bays as a mechanic. If you do not acknowledge the difference, you can be perceived as just an old-fashioned parts salesperson.

But there is one term that is even worse: installer.

Manufacturers, distributors and jobbers need to put an end to this word. It does not reflect the true description of the business today. It is condescending. It gives the perception of that person not being important, that they represent the bottom of the food chain and someone of a lesser profession. It does not reflect their importance and stature in the automotive aftermarket. Naturally, shops hate the term. It’s a 1950s-era phrase.

Change your terminology and your mindset.

Change from viewing them as installers to an automotive service provider, or ASP for short.

The better service providers are concentrating on value-added services to their clients. They are focusing on understanding to whom they are selling and customizing their service based on the customers’ needs and expectations. They are taking their responsibilities seriously in order to manage their clients’ vehicles for safety, reliability and efficiency.

Service providers are also at the top of the food chain. If the front-line troops do not sell and fully satisfy their clients, then the revenue stream is

38

Photo: ilyast, iStockphoto

C

It is condescending. It gives the perception of that person not being important, that they represent the bottom of the food chain and someone of a lesser profession.

affected down the line to the jobber, warehouse distributor and manufacturer. If the service provider is not effective nor competent at operating their business profitably, then everyone else in the industry is affected.

Service providers are looking at maintaining their clients’ vehicles for life, not just a one-time sale for the season. This level of the industry has changed dramatically, and the skill level required to be successful is tremendous. Today, the competent service provider is a true business professional and certainly does not come close to being an industry trade individual.

The industry needs to get its own house in order and speak accurately about the top level of our commerce. It is important to truly understand what’s going on here and reflect that in our dayto-day thinking, conversations and actions. Then perhaps over time, the business relationships could improve quite dramatically.

Step out of the box. Out with the old “installer” term and in with the new one of “service provider.”

Embrace it. This is our new aftermarket. JN

BY BOB GREENWOOD Bob Greenwood, AMAM (accredited master automotive manager), is president and CEO of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). He has over 40 years of business management experience within the independent sector of the automotive aftermarket industry in North America.

www.autoserviceworld.com | JOBBER NEWS / JUNE 2018

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