MMG Jul-Aug 2012

M a s t e r ’s G u i l d Leaders in the sale of quality Mopar Parts.

July-Aug 2012 In This Issue

Mopar Masters Meet with Mopar Execs at Denver Mile High Nationals See Pages 3-5

President Steve Hofer................................ 2 Business & Burning Rubber at Bandimere Speedway’s Mile High Nationals........ 3-4 Chrysler Nears Saturday Goal................ 5 Chrysler Appoints Sassorossi as Director of Fleet Commercial & Rental Sales..... 6 MMG Visits Reynolds & Reynolds........7 Is There a Place for RFID Technology in a Dealership?...................................... 8-9 Parts Trader, Parts Trader..............10-12 MetLife, Amica Ordered to Pay Over $3 Million to RI Shop Owner..........12-13 Our Supporting Vendors..................14-15 OEConnection.....................................16-17 Mopar....................................................18-19 ADP.......................................................20-21 Elite Extra...........................................24-25 FenderBender/Ratchet&Wrench.........26 UPS..............................................................27 Reynolds & Reynolds..............................28 Rousseau Automotive..............................29 What’s In A Name?...........................31-33 2012 MMG Committee..........................34

The exchange of information by like size dealers in a non-competitive environment.

Mopar Masters Guild

2

July - August ‘12

Letter from MMG President Welcome to another issue of the Mopar Masters Guild magazine. As you read this issue the sun will be high in the sky providing us all with the warmth of summer. With summer also comes the laughter of children, backyard barbeques and the occasional customer needing their air conditioning serviced. I hope this issue finds all of its readers enjoying time with their friends and family.

Whether business or personal, we all have a limited amount of time to accomplish our goals. The recent events in Colorado helped me to recall a quote by Carl Sandburg that I am fond of and wanted to share‌

Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent. Be careful lest you let other people spend it for you.

Carl Sandburg We are never sure how much time we have. As a child, things never happen fast enough and now as a parent it all happens too fast. In our professional lives there is often not enough of it. Realizing that is what makes the time offer so precious.

The magazine team has put together a collective of articles that should provide insight into industry challenges.

Included articles take a fun look at what the future of inventory control may look like as well as a recap of the recent executive meetings held in Denver, Colorado.

As always I would like to thank those that contribute time to this magazine as well as all Guild and supporting vendors that make this possible. You have all shared coins, as Sandburg would say, that are making others rich.

Steve Hofer

Mopar Masters Guild

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

3

Business, Barbeques & Burning Rubber at Bandimere Speedway’s Mile High Nationals Mopar Masters Meet with Mopar Execs in Denver at The Table Mountain Inn July 20 2012 Once again it was our annual meeting with the fine folks from Mopar. We would first like to take the time to give a big “thank you” to Mopar for the invitation to attend this meeting and also attend the Mopar Mile High Nationals at Bandimere Speedway in Golden, Colorado.

As always a great time was had by all.

Skip Olson kicked off the meeting by introducing the Mopar Team and we had the pleasure to hear from Pat Dougherty, newly appointed head of Mopar Sales & Marketing!

Steve Hofer, MMG President, then gave a brief update on the guild and introduced the new Officers.

John Tonial opened the session and we dove right into Dealer Rewards discussing the changes that have taken place. We also reviewed the new Wholesale Compensation program that was implemented on July 1st, 2012.

Skip Olson brought us up to speed on Collision discussing the new Conquest (Price Match) program and the new reimbursement payouts.

Magneti Marelli was next on the agenda and presented us the features of becoming one of the new “Hub” and “Spoke” dealers. This is an opportunity for all dealers to become both a source for other dealers as well as wholesale customers. Please take the time to review both of these options as it is a great way to increase sales.

Continued on Page 4

The exchange of information by like sized dealers in a non-competitive environment.

4

July - August ‘12

After a working lunch Tricia Hecker gave us a presentation on Mopar Brand & Marketing. This is an exciting time with Mopar celebrating its 75 Year anniversary!

Two websites to check out are www.localbiznow.com & www. localviznow.com You can use these to see what people are saying about your dealership.

Brian Rogos was up next with Accessories & Performance parts.

It’s very clear that Mopar is outdoing all other makes with the number of Accessories we offer…over 140 alone on the new Dodge Dart! Availability issues should be resolved in the coming weeks with several products.

Tom Linquiust and Adam Lackner were up next to give us an update on Supply Chain issues.

We appreciate everything that these folks do to get us our parts fast and damage free. Several changes have been made to help reduce the number of damaged parts that we receive and to streamline parts to our depots.

Tom shared some good news on the top ten Backorders that should be releasing in a short period of time.

This concluded the meeting and we again would like to say “Thanks” for the invite and participation we had from Mopar.

Submitted by Rick Cutaia MMG Vice President.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Chrysler nears Saturday service goal CHELSEA, Mich. -- Chrysler Group is close to its goal of having at least 80 percent of its dealers offering Saturday service, says the head of the group’s Mopar brand.

Pietro Gorlier, who leads the parts and service operations for Chrysler and parent Fiat S.p.A., said Chrysler is looking at other ways to expand dealer service offerings, including stand-alone drive-through oil change operations away from dealerships.

“We are just about hitting the 80 percent of dealers open for Saturday service, which was one of our targets to become more convenient and to attract more customers,” Gorlier said. When Fiat assumed management control of Chrysler in 2009, only 60 percent of its dealers offered Saturday service.

Chrysler is also encouraging dealers to consider opening their service bays on Sunday.

Chrysler believes service hours in the evening and on weekends will improve customer satisfaction and drive sales. CEO Sergio Marchionne was blunt with dealers this year because customer satisfaction scores had not improved as fast as he had wanted.

Chrysler is changing the rewards portion of its Dealer Standards program to improve customer satisfaction.

Gorlier said at a press event here that about 800 of the 2,344 Chrysler-Dodge-Jeep-Ram dealerships offer Express Lane quick oil change service.

He said Chrysler is studying with several dealers whether to expand its Express Lane concept into a stand-alone drive-through oil change service in some areas, away from dealerships. Express Lane operations offer routine vehicle maintenance, tire replacement and light repairs on all vehicles, regardless of make.

Ford Motor Co. has had some success persuading dealers to adopt a similar program that it calls Quick Lane.

“It’s something that we are looking at, and it may happen,” he said.

The Mopar brand has been working to expand its brand awareness since Gorlier arrived in Auburn Hills with Fiat in 2009.

There are limited-edition Mopar versions of Chrysler Group vehicles -- a Dodge Challenger, Dodge Charger, and Chrysler 300 -- and ramped up efforts to expand customization offerings for other vehicles in its lineup.

For example, more than 150 customized parts will be available for the 2013 Dodge Dart, which arrives in showrooms this month.

Gorlier said there won’t be any effort to go around dealers to offer Mopar-brand parts through other retail outlets.

Pietro Gorlier, Mopar brand chief: “We are just about hitting the 80 percent of dealers open for Saturday service, which was one of our targets to become more convenient and to attract more customers.”

The exchange of information by like sized dealers in a non-competitive environment.

5

6

July - August ‘12

Chrysler Appoints Sassorossi as Director of Fleet Commercial & Rental Sales SAVANNAH, GA – Chrysler announced on Friday, June 1 at its 2013-MY Fleet Product Preview that it has appointed Jim Sassorossi as the new Director of Fleet Commercial & Rental Sales for the company. Sassorossi replaces Pat Dougherty, who is moving to a new role as the Head of Parts Sales Operations for the Mopar Service, Parts and Customer Care organization Sassorossi is a 26-year veteran at Chrysler. His most recent role was as Head of Parts Sales Operations for Mopar. He has spent 10 years of his 26 years with the company working in the Mopar division.

“I am honored to be part of the Chrysler fleet team and to have the opportunity to work with our great customers to mutually grow our businesses together,” said Sassorossi. “I would also like to thank Pat Dougherty. He is someone I’ve admired for many years, in particular his leadership attributes and skills. I can only hope to build on his legacy.”

Dougherty has spent the last nine years working in fleet sales for Chrysler.

“It’s been a great 9 years of my life working with Chrysler fleet operations,” Dougherty said. “During this time I’ve had the opportunity to develop some of the best relationships in my career. I know we will continue to grow our fleet business. I truly appreciate, and thank, all of our customers over the years who have assisted us.

We couldn’t have a better individual than Jim Sassorossi taking over the fleet sales organization. I would also like to thank Pete Grady and our fleet team for the opportunity to work with them.”

Pete Grady, VP, Network Development & Fleet, also commented on these recent changes.

“Pat has been a huge presence in the fleet industry for the past 9 years,” Grady said. “His departure is a big loss for Chrysler fleet operations but a big gain for Chrysler Corporation. Jim Sassorossi will be an excellent addition to our organization as he has the same customer focus and responsiveness as Pat.” Sassorossi assumed his new role on June 1, and Dougherty assumed his new role on July 1, 2012, according to Chrysler.

By Greg Basich and Mike Antich

Jim Sassorossi (left) and Pat Dougherty (right), at the Chrysler 2013-MY Fleet Product Preview.

Photo by Mike Antich

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

7

Mopar Masters Guild Visits Reynolds & Reynolds It was our distinct honor and privilege this past May 23rd to visit the Reynolds & Reynolds facility in Dayton Ohio for our Mopar Masters Guild Vendor visit. I, Marvin Windham and Rich Schott took a tour of the campus.

Although we only got to visit a small section of the facility due to its size, you could tell that this place is as big as a junior college!

We had a one day meeting with Jason Sideris, Tim Wilson, and Dawn Spitler and we would like to give a special “thanks” to all of them for taking great care of us and making us feel right at home.

This was the first meeting with R&R in a few years and was kind of a “get to know each other” visit due to the time between visits. A new committee was put together and we did get to see some exciting new features that are coming in the very near future…and the future looks great for fixed operations!

ERA Ignite will be a new tool that will make both service and parts advisors work much faster and be more productive accomplishing tasks with just a couple of clicks rather than having to switch from screen to screen. This new feature streamlines many executable options with a click of the mouse.

Paperless is another project in the pipeline.

The Variable side has a lot of exciting new features coming as well and will make purchasing a new Chrysler vehicle much simpler and faster.

The guild would like to thank Reynolds & Reynolds for all of the support they have given us over the years and we look forward to a long and continued open relationship with them.

Submitted by Rick Cutaia MMG Vice President.

The exchange of information by like sized dealers in a non-competitive environment.

8

July - August ‘12

IS THERE A PLACE FOR RFID TECHNOLOGY IN A DEALERSHIP? Currently Automotive dealerships use various methods of data management and storage. Most DMS software provided by companies provide out of the box solutions. These solutions require users to adapt their processes to fit the software. Most software companies have consulted with their users to adapt their inventory management solutions to fit the needs of their clients. It is impossible however to adapt to the needs of every customer. Furthermore, because there is little room in the programming for customization many current products have fallen behind advancing technologies.

While the current solutions offered to automotive parts departments get the job done, they also leave gaps. The process of receiving and managing inventory is labor intensive. Users are required to receipt inbound stock by hand or by manual barcode scanners. There is little to no point of sale solution, reconciling on hand quantities is difficult, items lost in the system are difficult to locate and there is little security detouring theft.

RFID technology is gaining traction in many businesses and as an add-on to current data management systems would provide automotive parts departments a solution to close the gaps in their current solutions. There are many components that would need to be put in place to utilize the emerging RFID technology. The good news is that they all exist today. Software, RFID tags, an antenna network and point of sale devices would greatly improve the inventory management process and security for automotive parts departments.

In this case we will base the structure off of any existing DMS provider found today. All of the data management is in place within your existing dealer management provider leaving only the need for the RFID structure. The lack of RFID technology allows for gaps. Some of these gaps are first found in the manual control that is necessary to input data. Current systems cannot account for human error, misplaced parts, or theft. The RFID hardware, which we will discuss, needs to be able to communicate to the current data management system. The RFID technology will simply give the data management system more accurate information. As the hardware collects the data it will be transferred through an add-on software piece and into the data management system (DMS). It is important to understand that this add on software does not replace the current data management system but is a toll to allow the RFID to speak to the DMS. Aside from a handful of security reports and alarms provided by the add-on software it is still the job of the DMS to capture and report all the data.

There are a few key hardware components that will be required with this and any RFID system implementation. The first are the tags. The tag is instrumental in determining the rest of the hardware because there is more than one type of RFID tag. An RFID tag is comprised of an integrated circuit with an antenna (Banks & Thompson, 2007) . The integrated circuit acts much like the CPU of a computer while the antenna transmits information to the DMS. The RFID tag used will determine the rest of the network needed. The different tags consist of active, semi-passive, and passive. The real difference is in the need for the tag to transmit a signal long distance, short distances or not at all. For the purpose of the automotive parts dealerships a passive tag will be used. A passive tag will allow a good amount of data to be stored on the tag. Passive tags are inexpensive and will rely on the antennas for their power source (Banks & Thompson).

Continued on Page 9

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

9

The average cost of a passive RFID tag is between seven and twenty cents (Bonsor & Kenner, 2010).

With the type of tag that will be used identified, the next step is to determine how the tag will be written and read. This will be accomplished with an RFID tag printer and a network of antennas located throughout the warehouse facility. The required hardware will also include a network switch wired to the DMS server. As discussed there will be an add-on piece of software to speak to the tags and the DMS. With passive tags not having their own power source and getting their power from the antenna, antennas will be required about every 20 feet (Banks & Thompson). As orders are brought into the system the DMS system will communicate key information about the product to the RFID add-on software. The software will then send this information via the network to the RFID label printer. Labels for every inbound piece will be printed so the items can be tagged. Once tagged, the items will be brought through an inbound antenna port that will automatically receipt the items into stock and track their every movement though out the warehouse. This is accomplished because during the implementation processes every warehouse bin location would have been tagged. Once an item is tagged and within the dragnet of RFID antennas its exact whereabouts will be known at all times.

Point of sale items will include antenna pads as well as antennas at all exit points of the facility. As items approach or pass through these exit points the RFID antennas will pick up the tags information and cross reference it against recent sales. If there are no recent sales an alarm will ring letting the employee know that the sale was not completed or they have pulled the wrong item. This step is a key component to the additional security that the RFID system provides.

The DMS system is still the primary source that will be managing the data collected by the RFID system.

However, with the added reports of the add-on software and accuracy of the inventory there are sure to be measurable cost savings. The DMS system will be able to provide exact locations on every part. It will be able to provide accurate inventory investment to within a half of a percent. This increased accuracy means that an automobile dealership will be able to lower their safety stock and turn their inventory more often. The increased accuracy will also reduce missed investment of items lost in the system. It will also increase security reducing the expense of theft.

As RFID technology continues to become more widespread in other industries it will become more feasible for the use in a dealership setting. Nearly every aspect of security and efficiency can be addressed with this technology. The mind can wonder into endless possibilities such as the reduction in counterfeiting of manufactured parts, reduction in paperwork, improved efficiencies throughout the entire network, enhanced reporting, a failsafe electronic security web. Ask yourself how this technology would change the processes within your business and then consider what it could do for more sensitive businesses such as pharmacies.

References: Banks, J. & Thompson, L.G. (2007). The principles of RFID: Hardware basics. Retrieved October 3, 2010 form: http://www.rfidnews.org/2007/04/02/the-principles-of-rfid-hardware-basics Bonsor, K. & Keener, C. (2010). How RFID works. Retrieved Acotber 3, 2010 from: http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/rfid3.htm Submitted by Steve Hofer - Park CJ

The exchange of information by like sized dealers in a non-competitive environment.

10

July - August ‘12

PartsTrader, PartsTrader, PartsTrader 400+ came to CIC San Antonio with one thing on their mind: PartsTrader.

Over 400 participants packed the Collision Industry Conference (CIC) meeting room in San Antonio, Texas Tuesday to attend a presentation by State Farm Claims Consultant George Avery and PartsTrader CEO Rob Cooper who updated the audience on the progress on their online parts ordering test and provide the audience with an opportunity to ask questions about the pilot.

George Avery, up first, said, “There’s people who are worried. There are rumors and speculation. And really, we only have 158 stores on the pilot that are actually using the program, so there are a lot of people out there that are starving for information.” But Avery stressed that the program is still being piloted and said, “We just concluded our feedback phase last week. We went in face to face with each repair facility [on the program] and asked them for their feedback. We are evaluating right now.

PartsTrader CEO Rob Cooper provided an overview of the PartsTrader system and how it currently functions.

In a live demonstration of the online system, he demonstrated the flexibility of the process showing that repairers can not only select their own parts vendors within the PartsTrader quoting process, but showed how repairers also have the ability to bypass the quoting step altogether. Repairers participating in the pilot can complete what is called a “direct order” which does not require vendors to submit quotes, and instead routes the order directly to the shop’s primary vendor.

Cooper said, “I just want to let you know one thing, which is this: we are 100 percent committed to making PartsTrader the best possible product for parts procurement and further, and even more importantly, we are 100 percent committed to making PartsTrader a win for collision repairers.”

When the floor was opened up for comments and questions, Aaron Schulenburg, Executive Director for the Society of Collision Repair Specialists (SCRS), was first to the microphone to clarify the association’s opposition to the program. “SCRS and our members aren’t opposed to [PartsTrader] for the sake of opposition. We don’t have an issue with electronic parts ordering, [our members] already do that. We believe there are a large number of solutions out there that already incorporate electronic parts ordering. We don’t oppose efficiency and process improvement… we don’t oppose innovation.”

“What we do stand in opposition against [is] when insurers mandate solutions that don’t bring solutions to anyone other than themselves [and] the benefit isn’t derived or understandable by anyone other than the person mandating it,” he said. “For a company who has promoted open platforms in other areas, who’s taken estimates from all three carriers, who’s worked hard to make sure the repairer had the opportunity to use whatever systems and processes and solutions they wanted, this is a step backwards for [State Farm]”.

SCRS counts many vehicle manufacturers and parts suppliers among its corporate members and many of them offer electronic parts ordering solutions.

Continued on Page 11

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

11

Continued from Page 10 Dave McBroom, president of the Florida Auto Body Collision Alliance, questioned State Farm’s motivation for developing the system, “You don’t give us credit for what we’ve accomplished over the last 10 to 12 years.

You’ve asked us for better cycle time and we’ve given it to you in spades. We produce better and better, and we get ourselves better educated every year, and we come up with better solutions to the problems. I defy you to even think about coming close to having a better parts ordering system than we have”.

In Avery’s presentation, he explained that one of the goals of the system was to have all part types, OEM, aftermarket and salvage, in a single system.

Rick Starbard, president of the Alliance of Automotive Service Providers (AASP), said, “We can do everything today that [PartsTrader] can do through our own management systems… I don’t understand what the need is on the repairer side, but the need seems to be there on the insurer side, for the insurance industry to be able to control pricing and who gets to play in the parts game”.

Starbard described the PartsTrader system as a threat to the shops’ only remaining profit center, “The only thing that we have that has not been manipulated in an estimate are list prices of parts. We’ve got manipulated data and labor and everything else, and the only thing we have, that has any level of truth to it, is the list price of parts”.

Frank Terlep, CEO of the shop management system provider Summit Software, questioned the efficiency of an entirely separate system to order parts, “Why would you go to the market [to create a new system], and not come to a company like us, or other companies who are here, and integrate with their shop management system?”

Avery answered with a question of his own, “My answer to that is that one thing the tool does is it [introduces] a level of competition to the parts suppliers. I am puzzled when you say you don’t want [parts list prices] to come down, are you suggesting that you don’t want competition?”

Tony Passwater, representing the Indiana Auto Body Association, presented the results of a survey related to PartsTrader recently conducted by the association.

Dan Hunsaker, a shop owner currently participating in the PartsTrader pilot, said the administration of the system has been a strain on his shop’s resources and spoke passionately about the inefficiency of the PartsTrader system. He said PartsTrader offers nothing to improve efficiency, asking, “How can I improve on a one-click efficiency?”

John Mosley, a shop owner from Clinton, Mississippi, flew to CIC to ask State Farm one direct question, “Is this a pilot program or something we are going to have in all 50 states?”

Avery offered an explanation describing the difference between a test and a pilot, “The best way to look at this is that, you test something to see if it’ll work, and you drill a pilot hole before you are going to drill.

Continued on Page 12

The exchange of information by like sized dealers in a non-competitive environment.

12

July - August ‘12

Continued from Page 11 So, a pilot does suggest that your intent is to move, but, you’ve got to make sure that pilot hole is in the right place.

So, to answer your question, we are going to continue to work the pilot [and] fix these things that are clearly deficiencies, and then the evaluation is going to be next, as to whether this is going to be something companywide for Select Service repairers”.

Denise Caspersen the Collision Division Manager for the Automotive Service Association (ASA), took the opportunity to follow up on ASA’s request that State Farm demonstrate how this ‘win-win’ program benefits repairers, and asked Avery to share some specific positive results. “George, during your 15 minute presentation, you said that some shops have seen some positive results, maybe you could expand on that [and] give some tangible, positive results, both profit and operationally, on how this PartsTrader [program] is really a win for repairers.”

Avery stressed that the program is still in the evaluation period and changes are still being made to the process, “I am not sure how to answer your question yet, although we have it, and we certainly respect ASA enough that we will respond when we have an answer,” Avery said.

While maybe short on specific answers, Avery perhaps summed up the company’s position best when he responded to a repairer who criticized him for dancing around the issues, “I’m not dancing, I am in pilot,” Avery said, “After the pilot, after we’re convinced that we’ve done everything [we can do], there will come a time I’m going to say, yes, this is what we are going to require, and the individual repairers need to make that decision on who they want to deal with, do they want to deal with Select Service and State Farm? And I hope they do, because I’m not going to fix cars, I need a strong repair industry to fix our customer’s car.”

Source: www.collisionweek.com

MetLife, Amica Ordered to Pay Over $3 Million to R.I. Shop Owner Jury finds insurers acted with malice in bringing false fraud charges against shop for retaliation.

A Providence County Rhode Island Superior Court jury returned a verdict of $3.27 million on May 29 against two large automobile insurers after the jury agreed that the insurers acted with “malice” and “bad faith” when they instigated criminal fraud charges against a Cumberland, Rhode Island shop owner ten years ago.

The jury found in favor of the plaintiff, David F. Miller, former owner of Miller’s Auto Body, who maintains that the insurers worked to have him arrested for insurance fraud in an attempt to ruin his name, run him out of business and end his work in the state legislature where he lobbied to change auto insurance laws in the state.

Continued on Page 13

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

13

Continued from Page 12 An outspoken industry reformer, Miller served on the Board of Directors of the Auto Body Association of Rhode Island and also was chairman of the Rhode Island Auto Body Advisory Board, a division of the Department of Business Regulation (DBR) that is responsible for the regulation and licensing of the auto body industry statewide.

According to Miller’s attorney, Michael A. Kelly, the testimony and evidence presented during the three-week trial established that Miller’s advocacy led to an extremely adversarial relationship with MetLife and Amica.

“The testimony showed that they had complaints about David, in the way he was doing business, that they had a problem with his business practices. But instead of going to the DBR and filing a complaint, they went to the Rhode Island State Police and made allegations about wrongdoing that didn’t exist.”

Kelly described the insurers’ charges: “They [Amica and MetLife] told the police that Miller’s Auto Body did not repair the vehicle according to the insurance company estimate. They told the police and the attorney general that the estimate was a contract for repair and David was not repairing cars the way they were paying him to.”

“What they didn’t tell police,” Kelly continued, “was that shops aren’t required to fix the car according to the insurance company estimate, that all repair decisions are made between the shop and the customer. We had a staff attorney with the DBR confirm this. In addition, Miller’s had every customer sign a certificate with their invoice specifically disclosing to the customer that the car was not repaired according to the insurance company estimate. They [Amica and MetLife] did not supply the police with copies of those forms either.”

Attorney Nicholas J. Goodier, who assisted Kelly in the case, explained further, “During discovery we found that prior to going to the police, MetLife’s SIU (special investigation unit) had also organized an internal program called ‘Project Hammer,’ so named because ‘someone in the office really wanted to nail Miller’s Auto Body.”

Goodier continued, “Project Hammer was an organized attempt to run David out of business. They reviewed 40 of his claims, but were unable to find anything wrong. So, rather than approach the DBR, because they had no proof of wrongdoing, they went to the police.”

Goodier said that MetLife SIU was the first to meet with state police. “They told the police that Miller’s was enhancing damages, not replacing parts, and they volunteered to supply cars for an investigation if the police would be willing to conduct a sting operation against Miller’s.” The police accepted the offer.

Kelly added, “What they also didn’t tell the troopers is that the two cars they prepared for the sting operation were prior total losses that were never repaired properly.”

The complaints and subsequent sting investigation led to Miller’s arrest on criminal charges in 2002. He was led from his shop in handcuffs. However, according to Kelly, when it eventually became clear that Amica and MetLife had helped instigate the charges, and had withheld critical documents and information that would have undermined the case against him, all the charges against Miller were dismissed by the Office of Attorney General. But that took over three years.

Continued from Page 13

Continued on Page 30

The exchange of information by like sized dealers in a non-competitive environment.

Our Supporting Vendors: Support those who support you.

14

July - August ‘12

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

15

Our Supporting Vendors: Support those who support you.

The exchange of information by like sized dealers in a non-competitive environment.

16

July - August ‘12

What’s the Difference Between Dealer A and Dealer B? Dealer B has RepairLink with MORE! Inventory Lookups

450 400 350 300 250 200 150 100 50 0

Dealers using RepairLink with MORE average 450 inventory lookups each month.

Your staff can only eld so many calls per day, but you can be online 24 hours a day.

Increase your dealership’s visibility with RepairLink with MORE. Not enrolled yet? Call 1-888-776-5792 to talk to a sales representative.

Enrolled in RepairLink with MORE and want to know what shops are looking up your dealership’s parts information? Give us a call at 1-866-401-4610.

RepairLink with MORE: The OEM Mechanical Replacement Parts e-Commerce Solution of Choice.

View our webinar recording: Marketing to Shops and Overcoming Objections

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

17

The exchange of information by like sized dealers in a non-competitive environment.

18

July - August ‘12

))))�)))�) ))))�)))�))))))�)) �)�)�))��)�)�))�))))�))) EFFECTIVE JUNE 18, 2012 • Build your order and call customer service for a quote and payment terms • Present that quote for displays, installation, and freight to Bank of the West • Complete the finance application • Approvals within 24 hours (minimum order amounts apply)

))))))))))))))))))))))))))))) ))))))))))))

Mopar® is a registered trademark of Chrysler Group LLC.

866-776-7906 www.dealers-mopar.com/moparone/retail/flextech.jsp

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

19

The exchange of information by like sized dealers in a non-competitive environment.

20

July - August ‘12

CA$H Discovery Program Turn Your Idle Parts Inventory into CA$H Industry experts estimate that there is $1 to $2 billion of idle parts inventory sitting on dealers’ shelves in the U.S. If you’re like thousands of other dealers, you’re likely to have idle parts in stock.

According to the NADA:  A part that has not sold in 9 months has only a 15% chance of ever selling  A part that has not sold in 12 months will probably never be sold for a profit CA$H Discovery Program (CDP) is an online marketplace that brings together buyers and sellers.

Your idle inventory becomes someone else’s quick-turning stock.

How It Works SELLING DEALER

BUYING DEALER

CDP Filter

PARTS INVENTORY

CDP Filter

BUYER PREFERENCES

SELLER PREFERENCES

PARTS INVENTORY

MATCH TRANSACTION OPPORTUNITY

SELLER ACCEPTS

BUYER ACCEPTS

CDP has helped over 6,000 dealers buy and sell parts – that’s over $135 million in parts transactions since 2005. Call us to find out how we can help you sell your idle inventory and buy the quick-turning parts you need at a discount.  No long-term contract to sign

 No set-up or maintenance fees  No charge unless we sell your parts  Works with any Dealer Management System

ADP Dealer Services, Inc. / 1950 Hassell Road / Hoffman Estates, IL 60169-6308 / adpdealerservices.com / 888.424.6342 © 2012 ADP Dealer Services, Inc. / ADP is a registered trademark of ADP, Inc.

For more information on ADP’s CA$H Discovery Program, email us at sellmyidlestock@adp.com, call 866.598.4077 (option2), or visit www.sellmyidlestock.com

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

21

More parts in more places

PartsVoice is the largest open OEM parts locator in the US and Canada— open to both parts and service professionals, and retail consumers.

We have nearly 10 million parts listed on our website every day. Stop searching individual dealer and parts store inventories, and search over 2,200 dealers’ inventories on PartsVoice.com.

Search PartsVoice.com today for the parts you need, or contact us to learn how you can list your parts.

PartsVoice.com PartsVoice

713 Brooksedge Plaza Drive, Westerville, OH 43081

866.772.1850

The exchange of information by like sized dealers in a non-competitive environment.

22

July - August ‘12

. s l e d o ll M

A . . e s u l e a V k l a a n ll M ptio

A lity Parts. Excet.

Qua te Suppor e l p m Co

• Full Line Of Maintenance & Repair Parts For All Makes & Models • Over 30 Product Lines • Available At Participating Chrysler, Jeep , Dodge and Ram Dealerships, and FIAT Studios ®

®

Mopar Masters Guild Magazine

The Right Choice In Parts

Leaders in the Sale of Quality Mopar Parts

23

AUTHENTIC PERFORMANCE

www.magnetimarelli-aftermarket.us facebook.com/magnetimarelli.aftermarketnafta

Š 2012, Chrysler Group LLC. All rights reserved. Chrysler, Jeep, Dodge, Ram and Mopar are registered trademarks of Chrysler Group LLC. FIAT is a registered trademark of Fiat Group Marketing & Corporate Communication S.p.A., used under license by Chrysler Group LLC. Magneti Marelli is a registered trademark of Magneti Marelli S.p.A. Printed in U.S.A.

The exchange of information by like sized dealers in a non-competitive environment.

24

July - August ‘12

A better way to deliver your parts.

Elite EXTRATM (Extreme Tracking and Routing Application) is an online, real-time tool that streamlines your deliveries, while lowering your operational costs.

EXTRA automatically creates optimal routes on a web-based interactive map, increasing productivity for your dispatchers and drivers, while also reducing vehicle and fuel expenses.

What can EXTRA do for you? ► Increase revenue ► Increase profitability ► Improve customer relationships ► Control driver and fuel costs ► Go green with less fuel and paper

Benefits of EXTRA SAVINGS • • •

15% increase in driver and dispatcher efficiencies 5% average fuel savings Less paper needed

SIMPLICITY • • •

Routes displayed on web-enabled cell phones Integrates with other automotive industry apps Easy to install; upgrades done via web

SATISFACTION

EAU CLAIRE CHARLOTTESVILLE | DENVER | MILWAUKEE | OMAHA | SAN FRANCISCO

2985 58th Street | Eau Claire, WI 54703 | 715.874.2985

1.888.484.8729

w w w. e l i te ex t ra . co m

Mopar Masters Guild Magazine

• • •

Real-time ETAs for customers Driver accountability Fewer phone calls between all parties

Leaders in the Sale of Quality Mopar Parts

25

An investment with a proven return.

Elite EXTRATM is an investment that has a proven return. We’ve crunched the numbers using data from several clients and on average, most of our existing clients realized their return on investment (ROI) within the first THREE MONTHS of using it.

How do we do it?

The EXTRA routing and tracking system transforms antiquated paper-based and phone call-dependent processes into automated and integrated traffic control centers, increasing productivity for your dispatchers and drivers, while also reducing vehicle and fuel expenses.

Elite EXTRA Welcomes MMG to Eau Claire, Wis. August 19-20

Setting the standard for the delivery of automotive parts. ...EXTRA didn’t create revenue, it cut expenses, mainly human and fuel resources. Today I’m doing more volume with only a marginal increase in expense. Without EXTRA I can’t imagine spending my way into more return. We are earning more revenue because we are better, faster and different.

-- Rick Monteiro - Parts Director, Jack Powell Chrysler Jeep Dodge

EAU CLAIRE CHARLOTTESVILLE | DENVER | MILWAUKEE | OMAHA | SAN FRANCISCO

2985 58th Street | Eau Claire, WI 54703 | 715.874.2985

1.888.484.8729

w w w. e l i te ex t ra . co m The exchange of information by like sized dealers in a non-competitive environment.

26

July - August ‘12

Do You Want to groW Your Wholesale mechanical Business? aDvertise in Thanks Coach! The big secret to being a better leader page 43

GrowinG pains

The dangers of expanding too fast page 40

“i’m a competitive person, a really competitive person.

Everything i do, i want to be the best that i can.”

Passing the keys

InsIde The emoTIonal Transfer of a famIly shop

—Brian Sump, owner, Avalon Motorsports

page 36

Game ChanGer Former football pro Brian Sump shares the game plan that carried his shop to the industry’s top. page 32

Simple cureS For comeBack cuStomerS

page 47

Ratchet+Wrench provides Mopar parts dealers a great option for advertising their mechanical business. Through four regional editions Ratchet+Wrench reaches nearly 100,000 repair facilities, giving owners and operators the information they need to make money, save money, and work smarter in their businesses. There are many different advertising programs for Ratchet+Wrench, ensuring an option will work for you and your budget.

Contact us today so that we can personalize your marketing message and you can sell more mechanical parts.

Contact Chris Messer, Publisher

651.224.6207 ext. 14

e

cmesser@10missions.com We are a Proud Supporter of the Mopar Masters Guild ©2012. All rights reserved.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

27

Copyright © 2012 United Parcel Service of America, Inc.

3 WAYS LOGISTICS DRIVES DEALER PERFORMANCE Options are vital in the auto industry, especially when shipping.

Important papers, parts or pallets may be needed to seal a deal or a gasket. UPS delivers the high-performance package to do it all.

1) Match Speed to need Contracts

2) expand your day Business doesn’t

3) Be More efficient Using UPS to

need next-day delivery, while parts can

always keep business hours. UPS is

ship documents, packages, LTL or inter-

arrive in a day or two. Either way, our

ready when you are. Later pickups, on-

national freight simplifies what’s coming

options help you meet commitments

call service and more access points than

and going. You can help customers

as well as budgets. And your custom-

any other delivery company — including

better plan their days with proactive

ers can get an early start because we

customer centers, retail locations and

status updates, and streamline your

deliver by 8:00 and 10:30 a.m. to more

over 40,000 drop boxes — keep you

own operations with our end-to-end

ZIP Codes than anyone.

working on your own schedule, not ours.

online tracking systems.

Stop by and discuss all of the options upS has to offer at a chrysler Marketcenter conference near you:

September 19 — Uncasville, CT October 11 — Orlando, FL October 28 — Las Vegas, NV For more information, contact UPS at 800-567-9989 or visit the Chrysler MarketCenter site within DealerConnect.

The exchange of information by like sized dealers in a non-competitive environment.

28

July - August ‘12

Because

Results Matter.

Service Price Guides users experience an increase parts sales and department efficiency.

• Fewer manually added parts.

• No line at the back counter.

• Less calls from service - service can see parts availability.

• 60% increase in labor gross profit.

Learn more by scanning the QR code, visiting http://bit.ly/mmg-spg, or calling 888.834.8685.

© 2012 The Reynolds and Reynolds Company. All rights reserved. 4266154 3/12

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

29

Your Quality Solution • Durability • Quality • Flexibility

Organization

Service & Parts Storage Equipment

" The freedom to choose your own solution. " Overview of Rousseau’s products

1.866.463.4270 info@rousseaumetal.com

rousseau-automotive.com

The exchange of information by like sized dealers in a non-competitive environment.

30

July - August ‘12

“During that time, Amica and MetLife were steering customers away from David’s shop telling them that he was being prosecuted for insurance fraud,” Goodier added. “That was one of the key points in our claim for abuse of process. Obviously, when you go to the state police claiming that someone is committing fraud, you don’t use that to drive customers away, you use that to recover your damages and have them penalized. It came out in discovery that both MetLife and Amica actively tracked payments made to ‘tough shops’ and during Miller’s prosecution both paid particular attention to the drop in claims paid to Miller.”

During the three years of the fraud investigation, work in Miller’s shop had slowed to a fraction of what it once was.

It was then, in 2006, that David filed his case against the insurers seeking restitution for his ordeal, which he now won on May 29.

“I just wanted my named cleared,” David said after the trial. “I spent my life in this business. I’ve done nothing but try to improve this industry.”

Miller, who has also been battling cancer throughout this process, said, “I just wanted to live to see this thing through. I built a good business working for my customers, not the insurance companies. But by the time the criminal charges against me were dropped, my business was almost ruined and I was financially destitute.

Miller, who spent $300,000 on legal fees to defend himself and his business, was also compelled to transfer his shop license and reimburse the insurers for their investigation expenses when the charges were eventually dropped for “evidentiary and proof issues.” “But that was what they wanted,” Miller said, “to run me out of business. During the trial, an internal document from Amica, commenting on the charges being dropped against me, said, ‘A win is a win.’”

Miller’s suit contended that MetLife and Amica abused the legal process by withholding critical information from the authorities. The jury verdict found that both insurers had intentionally withheld vital information during the course of Miller’s criminal prosecution and that the companies were liable for an abuse of process.

The jury awarded all of the legal costs Miller incurred in defending against the 2002 criminal charges. The jury also awarded $600,000 for emotional distress and another $1.25 million in punitive damages. The judge awarded Miller interest payments dating back to the day of his arrest in 2002. Both defendant insurance companies are also liable to Miller for interest payments of $559,405.65 each.

Steven E. Snow, who represented Amica during the trial, said the insurers disagree with the jury’s conclusions, including the finding that they misused the legal process to retaliate against Miller. He left open the possibility of an appeal once Judge William E. Carnes Jr. files a formal ruling. “We were disappointed in the verdict,” Snow said, “but the process isn’t over.”

Ted Mitchell, Sr. Public Relations Specialist with MetLife, said “Metropolitan Property and Casualty Insurance Company disagrees with the verdict in this case, and we are planning to appeal the decision.”

Today, Miller’s two children run the shop. He said, “They have done a terrific job. They increased the staff, and made improvements to the building. I stop in to help them once in a while.”

The case was tried on behalf of Miller by Michael A. Kelly from the Law Offices of Michael A. Kelly PC. Kelly was assisted by Nicholas J. Goodier and Gregory Butler.

Source: www.collisionweek.com

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

31

What’s In A Name?

By Chris Sheehy | Sidewalk Branding Company

“Auto Body”, “Autobody”, “Body Shop”, “Collision Center” – all the same right?

We recognize all these name iterations as simply different terms for auto body repair businesses, but do search engines see it the same way as we do; and could selecting one name or phrase over the other influence our visibility on search engines? Po-tay-toe or po-tah-toe; it’s still just a potato. Isn’t it?

With the internet proving to be a significant lead generation tool for small businesses - the auto body industry included – businesses are discovering that local marketing is a hyper-competitive marketplace and being discovered online is getting increasingly complex. The days of set-it-and-forget-it website marketing are long gone, today’s businesses need a strategy with quantifiable results for their hard earned marketing spend. With respect to internet marketing – this means selecting the right words that will enable your business to rank well on search engines thus be discovered by more buying-prospects searching for what you have to offer.

Regardless of what the name is on the sign outside your body shop – the wording you use for your internet marketing plays a significant impact on both overall visibility and brand recognition by your customers and prospects searching for you online. A businesses listing on Google for example – is often the first impression a new customer has of your company. Conversely, for your older customers who haven’t needed your services in a while who look your business up on the internet instead of searching for your business card - that they most likely misplaced - low ranking on search might cause them to be lured away from your business by your competition who appears more prominent in the local auto body repair scene – judging solely by that businesses higher ranking and increased visibility on the search engines.

High ranking on search engines is all in the words – choose the right ones, and they will come.

Continued on Page 32

The exchange of information by like sized dealers in a non-competitive environment.

32

July - August ‘12

Continued from Page 31 I was talking with John Shoemaker from JSE Collision Consulting a few months ago about a client of his who was setting up a new auto body shop. I was included in some email exchanges between the two for my input on what to name this new business - from both an offline and online perspective. The overwhelming recommendation John and his client was getting from the local vendors and from a recommended local marketing firm, was to name this new business “Town Collision Center” (For this article “Town” = the actual town the business is in).

My advice was vastly different from what they were hearing. I advised they incorporate the dominate local identifier (their actual town name in this case, but it could have been a nearby city name if they are on the outskirts) along with the phrase “auto body” not only in the name of the business as seen from the street, but in their online presence too.

I was rigid with my suggestion of “Auto Body” - not autobody, bodyshop, body shop, collision repair, and certainly not collision center. Auto Body.

Being that my business specializes on the unique inbound marketing needs of the auto body repair industry, I have done some name-game studies; and Auto Body is –by far- the phrase that pays. That said, identifying the need to incorporate “Auto Body” into their business website title and marketing wordtrack is only half of the name game.

Think for a moment how you search for something online. If you were looking for great pizza in New Haven CT (hands down, the greatest pizza town in the US), this might be how your search could play out: >Pizza< (whoa – way too many results) >Pizza restaurants in CT< (refined, but not specific) >Pizza restaurants in New Haven CT> (that nails it!)

Doing this search, Giulios Pizza and Restaurant pulls top rank (for a non-paid listing, called organic search results). But having lived in New Haven half my life, I can tell you that Modern Apizza is the local favorite. So why aren’t they ranking #1 in the search?

Apizza is a thin-crust pizza unique to New Haven CT; it even has its own Wikipedia page; if you want good pizza in CT, Apizza is what you’re looking for. Rolling back on that search – this time replacing Pizza with “Apizza” you’ll find the beloved Modern Apizza owns the search engine results page (aka: SERP) with fourlistings on the first page of Google.

Pizza or apizza – auto body or collision center. What’s in a name?

Continued on Page 33

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

33

Continued from Page 32 Done right, body shops using the targeted term “Auto Body” in the key elements of their website and within their online marketing wordtrack (like on Facebook, LinkedIn, and directory listings) will rank higher in search because overwhelmingly that is consistently the phrase people search for. How much so? Take a look at this study we conducted: With 823,000 searches every month, “Auto Body” is by far the most searched for phrase in the study. The results were slightly different for mobile searches.

“I am surprised; “bodyshop” is most often associated with a bath & body company while searches for “body shop” leads with women’s care products before getting into the auto body listings, and any use of “collision” gets just a fraction of the traffic.

Auto Body is the clear winner - it really pays to do your research.” said John Shoemaker after reviewing the findings.

Now for the second part of the name game; including your location reference within the name of your business to target your business locally – so it’s discovered by more local people. This is pretty straightforward, the focus though is to do some local keyword research to see if your actual town name should be added to the front or back of the principle keyphrase Auto Body. The in-between words, such as of, the, and in are referred to as stop words – search engines will ignore these words in the title of your website – so looking back at the original discussion I had with John over the naming of a new business “Town Collision Center”, I was thrilled to hear his client had indeed selected “Auto Body of Town” as their namesake – both online as well as for their business identity. Search engines will see it as Auto Body Town – and that’s about as tight as you can get with name optimizing (aka: search engine optimization SEO).

After hammering out some solid metric on how to best position this business for high visibility on search engines, their success in online marketing is off to a solid start. Website optimization followed by search engine marketing, and social media postings will round up a solid online marketing strategy for new and established businesses alike. The name game – played well.

About: Chris Sheehy is an auto industry veteran with twenty-five+ years, has been published internationally within the automotive, auto body, insurance, and marketing industries and is the founder of Auto Body Consulting Group, a sister company to Sidewalk Branding Company, an award-winning Rhode Island based SEO and Local Marketing firm - named a Top Startup Business in New England.

Sidewalk Branding Co. gets businesses discovered online by the people searching for what businesses have to sell using website optimization, on/off-page SEO, link building, inbound marketing, social media, search engine marketing, hyper local optimization, and content marketing. More @ http://sidewalkbranding.co

The exchange of information by like sized dealers in a non-competitive environment.

34

July - August ‘12

2012 MMG C o m m itte e s

President Vice President Treasurer Secretary

Steve Hofer Rick Cutaia Mark Skinner Joe McBeth

Executive Committee

All of the above as well as:

Gerry Oakes

Marvin Windham

Dan Hutton Paul Allred

Park CJ – Burnsville, MN Rick Hendrick Dodge – Charleston, SC Power CJD – Phoenix, AZ Dallas DCJ – Dallas, TX

Baxter CJD – Omaha, NE Benchmark CJD – Birmingham, AL Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC

Committees:

Vendor Chairman Dan Hutton Tom O’Brien CJD – Greenwood, IN

Newsletter Dan Murphy Chapman CJD – Scottsdale, AZ

Don Cushing Bald Hill DCJ – Warwick, RI

Nada 2013 Planning Marvin Windham Benchmark CJD – Birmingham, AL

Andy Reed Allen Samuels DCJ – North Richland Hills, TX

Membership Open

Vendor Committees

ADP Gerry Oaks Baxter CJD – Omaha, NE

Paul Allred Stateline CJD – Fort Mill, SC

Andy Reed Allen Samuels DCJ – North Richland Hills, TX

Rick Monteiro Jack Powell CJD – Escondido, CA

Mike Mulkins Go Chrysler Jeep West – Golden, CO

R&R Rick Cutaia Rick Hendrick Dodge – Charleston, SC

Ken Kokoszka Pollard Friendly Motors – Boulder, CO

Rich Schott Moore CJ – Peoria, AZ

OEConnection Snap-On Dan Hutton Tom O’Brien CJD – Greenwood, IN

Paul Allred Stateline CJD – Fort Mill, SC

Brent Hoge Larry H. Miller CJD – Sandy, UT

Dealer Tire Paul Allred Stateline CJD – Fort Mill, SC Susan McDaniel Bill Luke CJD – Phoenix, AZ

Joe McBeth Dallas DCJ – Dallas, TX

Elite Extra Rick Monteiro Jack Powell CJD – Escondido, CA

Larry Morris Fred Beans DCJ – Doylestown, PA

Ken Kokoszka Pollard Friendly Motors – Boulder, CO

J.D. Ipsen Ken Garff West Valley CJD – West Valley, UT

Steve Hofer Park CJ – Burnsville, MN

UPS Marvin Windham Benchmark CJD – Birmingham, AL

Brent Hoge Larry H. Miller CJD – Sandy, UT

Casey Brown Allen Samuels DCJ – Katy, TX

Glen Hojnacki Milosch’s Palace CJD – Lake Orion, MI

Ken Kokoszka Pollard Friendly Motors – Boulder, CO

Mopar Masters Guild Magazine