AASP-MN News January 2015

AASP0115.qxp_AASP News 12/30/14 8:52 PM Page 1

January 2015

www.grecopublishing.com

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 2

2 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 3

CONTENTS Vol. 23 No. 1

AASP News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. All rights reserved. To keep its readers better informed, AASP News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. Cover image, pg. 10, pg. 11 © www.thinkstockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

AASP-MN BOARD MEMBERS 2014 - 2015 PRESIDENT Jerald Stiele

EXECUTIVE DIRECTOR’S MESSAGE ......................................................4 It’s Baaack...

by Judell Anderson, CAE, AAM, AASP-MN Executive Director LEGISLATIVE UPDATE ......................................................................5 Now the Hard Work Begins

by Kevin Walli, AASP-MN Lobbyist NATIONAL NEWS ............................................................................6 LOCAL NEWS ................................................................................7

IMMEDIATE PAST PRESIDENT Dan Sjolseth, AAM SECRETARY-TREASURER Tom Gleason COLLISION DIVISION DIRECTOR Joyce Weinhandl MECHANICAL DIVISION DIRECTOR Greg Kasel, AAM ASSOCIATE DIVISION DIRECTOR Kevin Martin COLLISION SEAT Mike Cox, AAM Jim Siegfried, AAM

FEATURE ......................................................................................9 AASP-MN Member Shops Give Back to the Community Year-Round

by Jacquelyn Bauman PARTNERS IN PREVENTION................................................................11 A Low-Salt Diet...For Your Sidewalk GUEST EDITORIAL ..........................................................................15 The Value of Membership

by Jeff Quam, Owner, Jaq’s Garage INSURANCE I.Q. ............................................................................18 How the Business Life Cycle Affects Planning Needs

by Dennis Begley, CLU ChFC LUTCF CBC CASH IN ON YOUR MEMBERSHIP!........................................................22 Wipers & Wipes, Inc.

MECHANICAL SEAT Wayne Watson

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver

UPCOMING EVENTS January 13-14, 2015 13th Annual Race for Automotive Education ProKart Indoor Racing, Burnsville Contact: AASP-MN 612-623-1110 or aasp@aaspmn.org March 9, 2015 Domestic Vehicle Low Speed Bus Diagnostic Strategies Marriott Minneapolis Northwest, Brooklyn Center Contact: Automotive Seminars, 920-866-9813 or autoseminars@centurytel.net

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER: Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES: Alicia Figurelli (alicia@grecopublishing.com) MANAGING EDITOR: Jacquelyn Bauman (jacquelyn@grecopublishing.com) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER: Sofia Cabrera (tgp4@verizon.net) www.grecopublishing.com

March 9, 2015 Domestic Vehicle Low Speed Bus Diagnostic Strategies Dakota County Technical College, Rosemount Contact: Automotive Seminars, 920-866-9813 or autoseminars@centurytel.net April 15-17, 2015 AASP-MN Annual Meeting & Convention Crowne Plaza Minneapolis West, Plymouth Contact: AASP-MN 612-623-1110 or aasp@aaspmn.org

ADVERTISERS’ INDEX aaa Auto Salvage....................................................................21 AmeriPride ............................................................................9 Axalta Coating Systems ........................................................OBC Buerkle Hyundai ....................................................................10 Choice Auto Rentals ..............................................................10 Dentsmart ..............................................................................18 Inver Grove Honda / Inver Grove Toyota..........................................17 Jack McClard ........................................................................17 Keystone ................................................................................8 Lowell’s PCE ..........................................................................7 Maplewood Toyota ................................................................15 Meadowbrook Insurance ........................................................11

AASP News

Mercedes Benz of Maplewood ..............................................14 Mills Parts Center ..................................................................16 Morrie’s ................................................................................20 Motorwerks BMW ..................................................................IBC Motorwerks Mini....................................................................IBC MPA ................................................................................................................12-13 PAM’s Auto ............................................................................8 Proven Force..........................................................................5 Rosedale Chevrolet ................................................................16 Roseville Chrysler..................................................................16 Straight & Square ..................................................................14 Toyota Group..........................................................................IFC

January 2015 3

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 4

EXECUTIVE DIRECTOR’S MESSAGE

It’s Baaaack...

by Judell Anderson, CAE, AAM, AASP-MN Executive Director

It probably should never have gone away to begin with. But understandably so, I think the recession and subsequent hit that the industry took as a result played a major role in putting it on the back burner for the past several years. Now the automotive repair industry is on the rebound and it is back, front and center, on many shop owners’ minds these days.

What’s it? The availability of (or - more accurately - the lack of) an ample supply of educated and well-qualified technicians and other personnel needed to carry out the day-to-day operations of today’s successful automotive repair business.

The worry is justified, considering the following issues:

2015 AUTOMOTIVE AFTERMARKET CALENDARS

Catalogs and order forms now available by contacting the AASP-MN office at:

(612) 623-1110 or (800) 852-9071 4 January 2015

• Misperception among educators, counselors and the public about the skills and aptitude required to be an automotive technician.

• Emphasis on four-year college degrees.

• A tsunami of retiring baby boomer technicians and shop owners.

• Less interest in automotive careers among young people.

• Lack of funding for secondary and post-secondary automotive programs.

• Poor industry image.

• Entry-level wages that are uncompetitive compared to trades of similar skill levels.

All of this while vehicle technology evolves at an ever-faster pace and consumer demand for automotive repair continues to rise. Yikes!

But there is hope. Many organizations and a lot of smart, dedicated, passionate people are working in various ways to turn the tide. I’m very pleased to say that AASP-MN is among those organizations. Here’s what we’re doing: • Supporting automotive students with scholarships ($15,000 in 2014 alone).

• Facilitating a task force, in partnership with the Collision Repair Education Foundation (CREF), representing a cross-section of the industry to work on local initiatives designed to increase the number of capable students in collision programs and ensure the schools have the tools and instructor training necessary to produce well-qualified, entry-level technicians.

• Reaching out to high school automotive teachers to offer program support and connect them to local AASP-MN members who want to help.

• Educating school counselors about automotive career opportunities.

AASP-MN recently submitted an article about automotive careers for the Minnesota School Counselors Association (MSCA) newsletter and has been invited to participate in the MSCA annual conference in May. • Customizing an employee assessment tool that will help members screen job applicants to ensure that they’re a good fit for the shop and effectively manage employees from day one on the job.

• Representing the industry on Advisory Committees of technical colleges and high school automotive programs.

• Serving on the Executive Board of the Minnesota Transportation Center, a state-funded initiative to fulfill the workforce needs of the transportation industry through partnerships across business, industry and education.

If you’d like to lend your support to any of these initiatives, please contact the AASP-MN office. This issue will not be satisfactorily resolved by one - or several - organizations alone. And it won’t happen overnight. The idea of having a multitude of qualified applicants for a single job opening may seem like a pipedream. But, if each and every person in the industry contributes and does their part to promote the industry and invest in tomorrow’s workforce, it will happen!

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 5

LEGISLATIVE UPDATE

Now the Hard Work Begins The AASP-MN committees have reviewed and revised our proposal to limit the insurance industry’s ability to dictate business practices for collision repair shops. We have made minor modifications to our proposal and we have had preliminary discussions with some of the key legislators who need to be on board in order for this measure to pass.

As the 2015 Session begins, we must reach out to all of the legislators who serve on the House and Senate Commerce Committees. The repair industry needs to make the case that independent businesses should remain independent of controls imposed by other business. Our success depends on making it clear that an inappropriate imbalance currently exists in the relationship between insurers and repair shops, and this imbalance is likely to become worse unless some constraints are established in law.

Over the years, we have enjoyed success at the Capitol making the case for main street automotive repair businesses. Even when insurance companies have lined up against us, we have fared well as the local “home town” businesses against the big, “out-of-state”

by Kevin Walli, AASP-MN Lobbyist

insurance interests.

AASP-MN will be reaching out to legislative leaders and committee members of both political parties. However, all of our work will be in the face of strong opposition from the insurance industry.

We can expect the Insurance Federation and all of the individual insurance companies to line up in opposition to our proposal.

AASP-MN will need to prepare a witness for what is likely to be an onslaught of opposition from insurance company executives and lobbyists.

Clearly, we have our work cut out for us. Members are encouraged to let their legislators know that we need their help. Any feedback you receive from your legislators – whether positive or negative and whether they are Democrat or Republican – should be reported back to the Association so that we can take it into account as we proceed with our work at the Legislature.

AASP News

January 2015 5

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 6

NATIONAL NEWS

New OSHA Reporting Requirements Go Into Effect January 1 Beginning January 1, 2015, there will be a change to what covered employers are required to report to the Occupational Safety and Health Administration (OSHA). Employers will now be required to report all work-related fatalities within eight hours and all in-patient hospitalizations, amputations and losses of an eye within 24 hours of finding out about the incident.

Previously, employers were required to report all workplace fatalities when three or more workers were hospitalized in the same incident.

The updated reporting requirements are not simply paperwork but have a lifesaving purpose: They will enable employers and workers to prevent future injuries by identifying and eliminating the most serious workplace hazards.

Employers have three options for reporting these severe incidents to OSHA. They can call their nearest area office during normal business hours, call the 24-hour OSHA hotline at 1-800-321-OSHA (1-800-321-6742) or they can report online at www.osha.gov/report_online.

For more information and resources, including a new YouTube video, visit OSHA’s webpage on the updated reporting requirements.

STARTING JANUARY 1, 2015: All employers must report: • All work-related fatalities within eight hours Within 24 hours, all work-related: • Inpatient hospitalizations • Amputations • Losses of an eye How to report incident: • Call 1-800-321-OSHA (6742) • Call your nearest OSHA area office, during normal business hours • Visit www.osha.gov/report_online GM Delays Implementing List Price Initiative until Early 2015 General Motors will continue publishing a list price until it can address workflow issues raised by the industry General Motors announced it is delaying implementation of the new OEM part pricing initiative it announced at SEMA in November. GM list pricing was to be eliminated in collision estimating systems on December 1 under the program.

According to a statement released by General Motors announcing the postponement, the auto manufacturer states: “GM remains committed to its consumer-focused pricing initiative, MyPriceLink.com. The strategy is designed to provide a competitive price available when an estimate is being prepared resulting in the best possible repair for all GM vehicle owners. GM has received overwhelming interest and support for its best price forward pricing strategy from all constituents throughout the collision repair industry. By providing our price up front in the estimating process, we continue to focus on helping our GM customer, allowing the vehicle to be returned to pre-accident condition, with original parts, en-

6 January 2015

AASP News

suring safety and appearance.

“Over the past week, the workflow pressures on outside parties have brought to light enhanced solutions and the increased desire for integration opportunities. These efforts will improve the process and allow for a longer implementation lead time so the revised workflows can be absorbed to the benefit of all of our General Motors customers, dealers and body shops. To this end, GM has listened, and has agreed to pause and extend the implementation of MyPriceLink.com.

“In the interim, GM will resume the publishing of list price until we implement MyPriceLink.com. The extended implementation time frame, allows for all parties to prepare and adjust as needed in order to begin getting GM list prices from the MPL.com price engine. We expect to have a fully functioning dynamic pricing process through MPL in market by early 2015.

“GM appreciates the interest and support MPL.com has received and looks forward to collaborating with all constituents in the collision repair industry to implement the new way in which GM list prices will be obtained.”

Automakers’ Privacy Principles Fail to Provide Consumer Control of Vehicle Data, Auto Care Association and MEMA Say In November, the Alliance of Automobile Manufacturers and the Association of Global Automakers released “Consumer Privacy Protection Principles,” which are intended to provide car owners with a set of principles regarding the sharing of the personal information available over vehicle telematics systems.

Two aftermarket associations agree that the measures fall short of what is needed.

While the Auto Care Association said it applauds the car companies for taking this initiative to inform consumers of the sizable amount of personal information that is being transmitted to manufacturers from their customers’ vehicles, the association believes that the manufacturers are still failing to provide car owners any choices regarding the information that is available from their vehicle.

Currently, car owners are at the mercy of the vehicle manufacturers as to where information on their vehicle is sent. This includes vehicle diagnostic, mileage and geolocation information. All of this information is sent directly to the manufacturer, and they decide with which third parties to share that information, the Auto Care Association said.

In many cases, car owners have established trusted long-term relationships with repair shops and other vehicle service entities to which they would prefer their diagnostic and other personal data be sent, in order to ensure more convenient and efficient service for their vehicle. Since these third parties often compete with the franchised dealer, it is unlikely that the data produced by a car owner’s vehicle will be made available by a manufacturer to an independent service entity.

The Auto Care Association said it strongly urges the vehicle manufacturers to build into their vehicles a secure gateway, which will allow motorists to have information that is transmitted by their vehicle and sent to the third party of their choice, not the car companies’ choice. Such action will permit car owners to have full control of the information available from their embedded vehicle telematics systems. continued on pg. 20

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 7

LOCAL NEWS

Happy New Year From the AASP-MN Board of Directors & Staff!

AASP-MN Hits All-Time High Membership Record in 2014 The Alliance of Automotive Service Providers, Minnesota (AASP-MN) reached a record-high membership level in 2014, ending the year with over 733 automotive industry businesses on its roster. The growth is attributed to the Association’s successful benefit programs with CBIZ AIA, Meadowbrook, United Fire and AmeriPride, as well as its ongoing commitment to education and training, future workforce initiatives and advocacy efforts at the state and national level.

AASP-MN’s goals for 2015 will focus on increasing recognition and visibility of the Association within the industry, strengthening program participation among current members and expanding and enhancing its package of benefits.

Industry Help Sought For 2015 SkillsUSA Competition The Alliance of Automotive Service Providers, Minnesota (AASP-MN) is facilitating the automotive-related events at the upcoming SkillsUSA Competition on Saturday, April 11. The collision repair and automotive service contests will be held at Hennepin Technical College in Brooklyn Park. High school and technical college students from around the state will be on hand to demonstrate their skills in automotive service and collision repair.

Industry leaders play a vital role in the SkillsUSA program.

You can help by doing any of the following: • Providing general guidance and help with automotive-related contests during the event.

• Volunteering to judge the contests.

• Encouraging high schools and community colleges in your area to get involved with the SkillsUSA contest.

• Promoting the event within the industry - and community!

Plaza Minneapolis West, Plymouth. The event will feature two days of management and technical training workshops, as well as social activities that allow opportunities to meet and get to know AASPMN members and other industry professionals.

Sponsors are rewarded by increased visibility and recognition within the AASP-MN membership and industry at-large. It’s a great way to stand out, expand marketing dollars and connect with the best shops in the industry.

If you are interested in sponsoring this year’s event, please contact the AASP-MN office for more information, or visit the Association’s website, www.aaspmn.org.

SAVE THE DATE!

AASP-MN Annual Meeting & Convention April 15-17, 2015 Crowne Plaza Minneapolis West Plymouth, MN Watch for details as they become available in future issues of AASP News and online at www.aaspmn.org.

The benefits you’ll receive for your involvement include: • The satisfaction of being able to provide assistance and encouragement to the next generation of automotive technicians.

• Increased exposure to potential employees for your shop.

• An expanded network of personal business contacts.

Please contact Judell Anderson at the AASP-MN office (612623-1110) if you’re willing to help out. It’s really a lot of fun!

2015 Membership Dues Are Due! Annual membership renewals for AASP-MN were mailed in December. By now, all AASP-MN members have received at least two membership renewal notices. If you have not paid your 2015 membership dues, PLEASE do so today.

Your timely payment will save AASP-MN the additional cost and time incurred with re-billing and other collection efforts. We’d much rather be working on programs and initiatives to improve the automotive service industry - and your business. Thank you!

Sponsorships Now Available Sponsorships are now available for the upcoming AASP-MN Annual Meeting & Convention, Apri1 15-17, 2015, at the Crowne AASP News

January 2015 7

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 8

8 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 9

FEATURE

by Jacquelyn Bauman

AASP-MN Shops Give Back to the Community Year-Round Many AASP-MN member shops recognize the value in serving those in the community in a variety of different ways throughout the year. Throughout the course of 2014, member shops were active not only in the automotive service field, but in their local communities, participating in a variety of service programs.

As always, it is customary to be especially giving during the holiday season. A number of member shops took part in giving-back programs around Christmas, such as Fairway Collision & Automotive, Vadnais Heights, that held a drop off site for their local food and toy drive. LaMettry’s in Inver Grove Heights donated a fully restored 2008 Chevrolet Impala to a newlywed couple, Sean and Nichelle Nagle, who recently returned from their Army National Guard deployment in Afghanistan - the fourth vehicle that they have repaired and donated in the name of community service. Pearson Auto Body, Shakopee, also teamed up with Progressive Insurance for Food for Kidz, a program that packages nutritional meals for hungry children around the world. That event, held on December 6, packaged a record number 53,352 meals for distribution.

However, the holidays aren’t the only time that member shops give back to the community. In June, Automotive Parts Headquarters, Inc., St. Cloud, held its fourth annual chili cook-off that raised $62,000 for WACOSA, a nonprofit day program for adults with disabilities. In August, Signal Garage, West St. Paul, participated in their 11th annual “Free Brakes for Food” program, where they collect food and school supplies for two local agencies, and in turn, replace the brake pads or shoes for those who donate for free. Throughout the year, Crystal Lake Automotive, Inc., Lakeville, accepts nominations for its Crystal Lake Cares program, which provides free automotive service to a selected candidate who is down on their luck. Similar to LaMettry’s, in November, Superior Service Center, Eagan, repaired a car donated by Progressive Insurance with parts donated by LKQ and NAPA for the Cars for Veterans program.

Remember to take the time this year to do your part for your community.

L to R: Laurie Kaiser (CMO), Col. Clyborne, Darrell Amberson (President of Operations), recipients Nichelle & Sean Nagle, 1st Sgt Deans, Joanne LaMettry (CEO), J.R. LaMettry (VP), Randy LaMettry (VP).

Pearson Auto Body (Shakopee) teamed up with Progressive Insurance as the host for the 2014 Food For Kidz event on December 6. The program packages nutritional meals for hungry children around the world.

AASP News

January 2015 9

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 10

10 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 11

PARTNERS IN PREVENTION

A Low-Salt Diet...For Your Sidewalks WHEN IT COMES TO DEALING WITH ICE AND SNOW, EVERYONE HAS A FEW TRICKS UP THEIR SLEEVE.

Why should you think about how much salt you use? Salt pollutes. When snow and ice melt the salt goes with it, washing into the nearest lake or river. Even small amounts of salt can harm fish and plants. High amounts can kill them. It takes only one teaspoon of salt to permanently pollute five gallons of water.

The MPCA offers training classes for winter maintenance. If you hire a service to take care of your sidewalks and parking lots in the winter, consider using one that has taken one of these classes. If you do your own winter maintenance, consider attending the free

training yourself. Many companies that have taken the training have reduced their salt use by 30 to 50 percent. That’s a substantial amount of cost savings if you have a lot of sidewalk or a large parking lot.

Make efforts to reduce the amount of salt you use and use it more effectively. Keep your sidewalks clear and keep the water clean.

You can take these tips home, too!

For more tips, short videos, and training information, visit the MCPA’s winter maintenance webpage at www.pca.state.mn.us/ r0pgb86.

Here are a few tips that will keep your parking lot and sidewalks clear, but keep your salt use to a minimum.

Check your sidewalks and parking lot for undissolved salt crystals on dry pavement.

That means too much salt was used. Sweep it up, reuse it, and use less next time.

What does the right amount of salt look like? Aim for evenly spread salt crystals that are less than three inches apart but not touching each other. No piles. Handheld salt spreaders work great to spread salt evenly, and you’ll use about half as much salt as you would with a scoop. You can pick up a handheld salt spreader at the hardware store for about $15.

Don’t spread salt when it is very cold out.

Salt won’t do anything until it dissolves and forms a brine. Most salt won’t dissolve if the temperature is below 15 degrees Fahrenheit. If it is too cold for salt to melt ice, use ‘turkey grit’ for traction on ice.

If it’s warm enough out, sprinkle just a little salt on sidewalks and stairs when it starts to snow. The salt will melt a little of the snow, and the salt will dissolve in the melted snow to create a brine. The brine prevents the snow from freezing to surfaces, the same way a little lubricant keeps parts from sticking together.

Snow or ice that builds up will be easier to ‘pop’ free from the pavement with a shovel later.

Use a broom, shovel, snow blower or plow to remove as much snow as possible.

There will be less melted snow to refreeze into ice and you won’t dilute the salt you use. Remove snow quickly to prevent compaction. It’s frequently sunny the day after we get a snowfall. If you’ve removed most of the snow, the sun will clear the rest, even if it’s very cold.

For a stubborn icy spot, sprinkle it with just enough salt to perforate the ice. Give the salt time to do its work then scrape the ice loose with a shovel.

AASP News

January 2015 11

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 12

12 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 13

AASP News

January 2015 13

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 14

14 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 15

GUEST EDITORIAL

The Value of

Membership Just before Thanksgiving, I received a call from a close relative. She lives in the Twin Cities and was having a problem with her ignition lock and tumbler. She could not turn the ignition key and had called me seeking advice. She was at a tire shop, but it was questionable as to whether they could squeeze her into their already-tight schedule.

Not being familiar with Fords, I hinted that getting it to a dealership might be the safest and quickest option. However, on further thought, I called the AASP-MN office (it was late on a Friday afternoon) and Judell answered. I told her the story and she emphatically told me, “We are not sending that car to a non-member dealer!” She quickly gave me the number of a couple of AASPMN members in the area where the car was.

Both of the members were familiar names to me, so I just called the first one – St. Paul Automotive. I talked to Scott, and even though it was about 5pm, he was calm and reassuring. After hearing the story, he thoughtfully referred me to a locksmith who he uses from time to time. He pointed out that they are mobile and usually can come right to the car, saving a tow charge.

by Jeff Quam, Owner, Jaq’s Garage, Moorhead, MN

I called the locksmith. Turns out he was too busy, but he - in turn - gave me two other phone numbers. Finally, I found someone who could do the lock and tumbler. The story ends there, because the original tire shop was able to get to the job in a timely manner, but here’s the point: What impressed me was the courteous, professional manner that I was met with at every turn. It reminds me that I am a member of an elite group of professionals who - on a daily basis - inform, guide and help their customers find the right solution to a problem.

It may be a referral, or just some empathy or assurance, but, ultimately, we fix the vehicle for the customer.

I have always considered AASP-MN membership to be one of the best things that I’ve ever done for my business and this experience is just another reason why. I made a point to familiarize myself with the AASP-MN website a little more so next time I will use it to search for a member instead of calling the office. But, “kudos!” to Judell, AASP-MN and St. Paul Automotive. They made my day.

AASP News

January 2015 15

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 16

16 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 17

AASP News

January 2015 17

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 18

INSURANCE I.Q.

by Dennis Begley, CLU ChFC LUTCF CBC

How the Business Life Cycle Affects Planning Needs

Chances are, you were not doing estate planning at age 20. That need just didn’t exist or wasn’t a priority at that time in your life.

The same logic applies to your business planning. Where your business is in its “life cycle” has a great impact on when you should address the various needs of your business, the owner(s) and key employees.

Here are the common stages that most businesses go through with corresponding planning needs. You can identify which stage your business is in by looking at the company traits below. Then, take a look at the planning needs worthy of your consideration right now, as well as down the road.

Company Traits

NEW BUSINESSES (1-3 Years in Business) • Trying to become established in the market • Putting profits back into the company • Generally have substantial debt • Revenue generally less than $500,000/year

Company Traits

Planning Needs and Solutions

• Life insurance to cover debt/buildings • Key person (life and disability) insurance on owner(s) • Buy-sell agreement implementation and funding • Exploration of a group benefits package for owner(s)/ key employees • Individual life and disability insurance

Planning Needs and Solutions

GROWING BUSINESSES (3+ Years in Business) • Potentially still establishing business in the market • Expenses and reinvestment in the company may remain substantial • Need for debt financing may be decreasing • Revenue stream is growing

18 January 2015

• Key person (life & disability) insurance on owner(s) and key employee(s) • Buy-sell agreement and funding review • Informal business valuation • Finance buy-sell agreement for death/disability/ voluntary exit

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 19

Company Traits

GROWING BUSINESSES (Continued) • Client base is building; relationship management and key person retention needs may be more significant

Planning Needs and Solutions

• Overhead expense disability insurance • Implement a group benefits package using a combination of employer-paid and employee-paid life, short-term disability, long-term disability, dental or vision insurance

ESTABLISHED BUSINESSES (10+ Years in Business) Company Traits

Planning Needs and Solutions

• Established in the market • Established management team • Consistent cash flow • Business continuity plan in place • Consistent revenue • Established client base and relationship management

• Updated informal business valuation to address changing needs: - Financing for death/disability/voluntary exit from business - Consider a buy-sell agreement review to determine if funding is adequate • Key person (life and disability) insurance on any new owner(s) and/or key employee(s) • Overhead expense disability insurance • Expanded group benefits package • Key person retention plan • Solid transfer strategy • Business owner retirement planning • Estate planning if family is in the business (if business value exceeds $5 million) • Inheritance equalization planning

Company Traits

TRANSITIONING BUSINESSES

Planning Needs and Solutions

• Transition planning (paramount) • Key person (life and disability) insurance on new owner(s) and/or key employee(s).

• Overhead expense disability insurance (for new ownership) • Continued expansion of group benefits package • Key person retention plan review and addition of any new members • Utilization of business value for owner retirement needs • Survivor benefits/income • Estate planning if family is in the business (if business value exceeds $5 million) • Inheritance equalization planning

• Established in the market • Strong management team in place • Consistent cash flow; looking to retain cash flow in owner’s absence • Established client base and relationship management

It’s important to be mindful of the planning needs that may come up at various stages in the cycle of your own business. Planning and implementing solutions before issues arise will protect not only you and your family, but the livelihood of your valued em-

ployees as well.

To discuss any of the planning concepts listed in this article, please contact me at dpbegley@cbizaia.com or 763-549-2260.

AASP News

January 2015 19

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 20

NATIONAL NEWS continued from pg. 6

The Motor & Equipment Manufacturers Association (MEMA) said it views the automaker’s principles as a positive first-step in providing greater transparency, privacy and the option for motorists to “opt-out” of sharing non-essential vehicle system data. “MEMA believes there is still much work to be done to ensure motorists continue to have the freedom of choice where their connected vehicle is serviced as well as the freedom of choice to send vehicle data directly to independent service providers, in both the light duty and heavy duty vehicle sectors,” said Steve Handschuh, president and chief executive officer of MEMA. I-CAR Reparability Technical Support Portal Connects Industry Pros to OEMs I-CAR is continuing to promote the launch of its Reparability Technical Support (RTS) Portal, a collection of resources to help provide repair industry members with valuable information, technical support and repair solutions. The portal offers realtime OEM information and announcements, collision repair articles, and technical questions and answers.

Stemming from an initial request from AASP National, the Automotive Service Association (ASA) and the Society of Collision Repair Specialists (SCRS) to establish an entity to address and rectify gaps in OEM repair procedures and processes, the RTS Portal aims to provide a one-stop resource of collision repair information and knowledge.

Jason Bartanen, director of Industry Technical Relations for I-CAR, says that the RTS Portal has been compiled to help foster greater understanding to all members of a rapidly evolving industry.

“We’re just trying to make sure that all the information is out there to help facilitate complete, safe, quality repairs,” says Bartanen. “A lot of this information has been available for a number of years, but we’ve brought everything over to the RTS portal so that it’s all in one spot and easily navigable. We’ve updated and refreshed some of the information with new photos and a revamped look as well.”

Nearly every vehicle manufacturer selling vehicles in America is represented in the “OEM Information” section of the RTS Portal, which contains links to manufacturer-specific repair websites, position statements, body repair manual guides, news and available training opportunities.

Repairers will also find repair solutions through the Portal’s “Ask I-CAR” feature, which allows the user to search by make, model and year to search for repair questions and answers on a particular vehicle.

20 January 2015

AASP News

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 21

“If the visitors can’t find an answer to the question they have, they can either submit an inquiry online with the click of a button, or they can call our full-time, on-staff technical experts,” says Bartanen. “Inquiries are forwarded directly to the staff, and if our experts are unable to answer the call, we have a policy of getting back to the caller in a two-hour window. We may not always have an answer in that time frame, but we will always get back to them with an update.”

Additional features on the portal include collision repair news updated as published industry-wide with updates announced via Twitter (@Tech_Briefs), an airbag replacement and partial part replacement search and Uniform Procedures for Collision Repair (UPCR). I-CAR is also in the process of adding a hybrid search matrix for additional information and resources on hybrid vehicle disablement to protect collision industry professionals working on and around these vehicles.

“Our OEM link pin activity creates an interactive method of sharing information,” says Bartanen. “If someone has a question we can’t find an answer to, we can reach out to the manufacturer and then post that resulting information online. Additionally, as we get feedback from our repairers, we can approach the manufacturers and ask them to approach new ideas.”

The portal has also facilitated the creation of reparability summits and industry segment advisory councils (ISACs), which have representation and active participation from manufacturers on a variety of subjects.

“We’re getting feedback from the industry on what gaps need to be closed; it’s a great concept, and we’ve found it to be working really, really well. We’re really busy, and we’ve got a great team in place.

We’re excited to see what the future holds and how we can continue to collaborate to get the best information out there to the industry.”

major light vehicle and motorcycle manufacturers are required to provide VIN search capability for uncompleted recalls on their own websites, with the data updated weekly. NHTSA’s new VIN look-up tool relies on this information from those sites.

“Safety is our highest priority, and an informed consumer is one of our strongest allies in ensuring recalled vehicles are repaired,” said U.S. Transportation Secretary Anthony Foxx when the service was announced in August. “Starting today, car owners, shoppers and renters can find out if a specific vehicle has a safety defect that

needs to be fixed – using our free online tool.”

There are some limitations to the database. According to a NHTSA spokesperson, the tool does not provide look-ups for all cars. “Only vehicle manufacturers that produce 25,000 or more light vehicles annually and manufacturers that produce 5,000 or more motorcycles annually are required to support the tool, although any vehicle manufacturer may choose to participate,” the spokesperson said. A list of current participants is on the site.

NHTSA Launches Online VIN-Based Recall Search Tool as Vehicle Recalls Skyrocket Against a backdrop of increasing automotive recalls the National Highway Traffic Safety Administration (NHTSA) has gone live with its online VIN-based recall search tool at www.SaferCar.gov/vinlookup.

Under a recent NHTSA mandate, all AASP News

January 2015 21

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 22

CASH IN ON YOUR MEMBERSHIP!

Wipers & Wipes, Inc. AASP-MN and Wipers & Wipes, Inc. are partnered to provide members with special pricing on items used in the shop every day.

Wipers & Wipes, Inc. specializes in disposable toweling for the automotive service industry. With a modern, highly efficient warehouse, Wipers & Wipes, Inc. is able to stock a large and diverse inventory to quickly meet the needs of its customers. Wipers & Wipes, Inc. provides nextday service with free delivery in the seven-county metro area and some surrounding cities. Daily shipping via UPS and Spee-Dee Service for outlying areas is also available. A $100 order qualifies for free freight.

“We give fantastic service and sell quality products,” says the company’s owner, Dennis Julson. Julson, along with his modest crew at Wipers & Wipes, Inc., can service you with a variety of items, including:

• Paper toweling & dispensers • Mopping & floor maintenance equipment • Skin soaps & lotions • First aid products & equipment • Food service equipment • Cleaning chemicals, floor pads, sponges & abrasives • Waste receptacles & can liners • Facility maintenance & cleaning tools & supplies

For more information about this AASP-MN Member Benefit program, contact Wipers & Wipes, Inc. at (651) 486-4866.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums.

EMPLOYEE BENEFITS CBIZ AIA Contact: Dennis Begley 763-549-2260 CBIZ AIA will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance.

UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 • Fax: 952-738-3318 jim.dillon@ameripride.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year.

22 January 2015

CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 • Fax: 952-933-4595 mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson Phone: 651-486-4866 Fax: 651-486-4859 Discounts on industrial supplies and paper products.

Free, next-day delivery is available in the metro area.

Shipping free to outstate members with $100 purchase.

WEBSITE AND INTERNET MARKETING SOLUTIONS Net Driven Contact: Jon Napoli 218-623-7351 / 218-310-7285 Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. Net Driven assists independent tire and automotive industry dealers who are looking to increase revenue by selling more tires, service, and wheels. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees. For more information, contact Jon Napoli.

Stormlogix Contact: Paul Switzer 732-364-1156 / paul.switzer@stormlogix.com Stormlogix extends a discount on its website packages to AASP members. Costs can be spread out over 6 months.

TECHNICAL INFORMATION HOTLINE IDENTIFIX Phone: 800-288-6220 Fax: 651-633-2188 Members enjoy discounted prices on the industry’s #1 technical information hotline. One free call is extended to all first-time AASP-MN member callers.

BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury Phone: 612-623-1110 or toll free 800-852-9071 Fax: 612-623-1122 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

SHOP SERVICES Summit Software & Mobile Solutions Contact: Frank Terlep 888-377-2661 / fterlep@summitsoftwaresolutions.com.

Website: www.emarketingsherpas.com AASP members receive a $50 discount on their annual e-Marketplace subscription, a digital marketing system that includes mobile phone apps and a complete customer service, sales, marketing, advertising and communication platform.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative Phone: 888-724-6742 x 6986 AASP members are eligible for special Mitchell 1 information and management programs at significant discounts. For more information, log onto www.mitchell1.com or contact the Mitchell 1 representative at 888-724-6742, X6986.

Mitchell International Contact: Mitchell International Representative Phone: 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

AASP News

PAYROLL PROCESSING CBIZ Payroll Contact: Bob Willbanks 612-298-1176 / bwillbanks@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). Members who switch prior to June 30 will receive first month of payroll processing free.

CHECK GUARANTEE SERVICES Certegy Check Services Contact: Heather Ellis 952-240-5017 / heather.ellis@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Website: www.180biz.com 180BIZ offers BUSINESS COACHING to AASP members at a steep 20% discount! One Eighty Business Solutions LLC (180BIZ) has been helping shop owners increase profits and car count while decreasing stress since 2003.

AASP members receive a discount on very affordable oneon-one coaching plans without long-term commitments and complicated contracts. 180BIZ offiers a risk-free trial of their services. To learn more, please call or email us, or visit our website.

REPLACEMENT PARTS Dorman Products Phone: 800-868-5777, ext. 5329 Website: www.dormanproducts.com AASP members receive insider information, special access and other perks from Dorman Products, a leading supplier of dealer “exclusive” automotive replacement parts.

LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick Phone: 800-496-6789 Fax: 218-725-6800 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 23

AASP News

January 2015 23

AASP0115.qxp_AASP News 12/30/14 8:53 PM Page 24