AASP-MN News May 2016

www.grecopublishing.com

2 May 2016

AASP-MN News

AASP-MN News

May 2016 3

4 May 2016

AASP-MN News

CONTENTS AASP-MN 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. To keep its readers better informed, AASP-MN 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. © 2016 All rights reserved. Cover image © www.istockphoto.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 2016 - 2017

Vol. 24 No. 5

MECHANICAL DIVISION DIRECTOR’S MESSAGE........................................6 Let Me Introduce Myself...

by Mars Overlee, AASP-MN Mechanical Division Director LEGISLATIVE UPDATE ......................................................................7 2016 Window Closes on AASP-MN Insurance Claims Practices Legislation

by Kevin Walli, AASP-MN Lobbyist

PRESIDENT Greg Kasel, AAM

LOCAL NEWS ................................................................................8

IMMEDIATE PAST PRESIDENT Tom Gleason

NATIONAL NEWS ............................................................................12

SECRETARY-TREASURER Wayne Watson

DEG ESTIMATING TIPS ....................................................................15 “NEGOTIATION TOOLS AND BEST PRACTICES” REGISTRATION ....................17

COLLISION DIVISION DIRECTOR Will Latuff MECHANICAL DIVISION DIRECTOR Mars Overlee ASSOCIATE DIVISION CHAIR Dave Bock COLLISION SEATS Jim Siegfried, AAM Bruce Tschida, AAM MECHANICAL SEAT Carl Thomas

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury

22ND ANNUAL AASP-MN GOLF OUTING REGISTRATION ............................19 CASH IN ON YOUR MEMBERSHIP!........................................................22 These Bankcard Sales People Are Driving Me Nuts!

UPCOMING EVENTS

June 2, 2016 Mike Anderson’s “Negotiation Tools & Best Practices” Seminar Radisson Minneapolis/ St. Paul North Roseville

June 21, 2016 22nd Annual Golf Outing Keller Golf Course, Maplewood

August 24, 2016 A Night Out with the Saints CHS Field St. Paul

For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.

MEMBERSHIP COORDINATOR Tom Kluver ADVERTISERS’ INDEX 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: Donna Greco (donna@grecopublishing.com)

aaa Auto Parts ....................................................................14 AmeriPride..........................................................................7 Axalta Coating Systems ......................................................OBC Blue Net, Inc. ....................................................................4 Buerkle Hyundai ................................................................15 CBIZ / AiA ..........................................................................IFC Choice Auto Rentals ..........................................................13 Dentsmart ..........................................................................6 Inver Grove Honda / Inver Grove Toyota......................................16 Jack McClard......................................................................16 Keystone ............................................................................15 Libson Twin City ................................................................4 Maplewood Toyota..............................................................10

Meadowbrook Insurance ....................................................IFC Mills Parts Center ..............................................................13 Morrie’s ............................................................................9 Motorwerks BMW ..............................................................IBC MPA ............................................................................................................11 PAM’s Auto ................................................................................................20 Proven Force ..............................................................................................21 Rosedale Chevrolet ............................................................15 Roseville Chrysler ..............................................................13 Straight & Square ..............................................................20 Toyota Group ......................................................................3 United Fire Group ..............................................................IFC

www.grecopublishing.com

AASP-MN News

May 2016 5

MECHANICAL DIVISION DIRECTOR’S MESSAGE

Let Me Introduce Myself…

by Mars Overlee AASP-MN Mechanical Division Director

Hi, my name is Mars Overlee and I am the new Mechanical Division Director for AASP-MN. I own and operate Rick’s 36 Automotive in Stillwater, MN. I have been lucky enough to work most of my adult career at the same place; I just celebrated my 22nd year at our company. I started as a technician and worked my way up to service advisor. Finally, my wife and I purchased the business in 2009. This industry is all I really know. In high school, I worked as a full-service gas station attendant at an Amoco in Edina. Wanting to serve my country, after high school I went into the Marine Corps and got to see the world. I returned to this area after four years in the Marine Corps and wouldn’t want to live anywhere but here.

Another thing I have been a part of for quite a while is AASP-MN. Many of you may know my uncle, Rick Soderlund, who is a former Board member and past president of AASP-MN. He saw the value of our association,

6 May 2016

even when I did not. So many times, we get used to the daily grind and find it hard to go to training or other industry activities, but I would make an effort to go to these events with my uncle – such as the AASP-MN conventions and Race for Automotive Education each year – all the while not really knowing why we were going.

What I came to learn is that he wanted us to be the best and by being involved in our association, we became the best – not just by learning things at the training classes, but by developing relationships with the people who do what we do on a daily basis.

Please talk with your employees about the value of training classes and the time spent with other people in our industry. Take the time to participate. Getting involved in AASPMN really pays off for the individual, your company and the association.

(By the way, Rick is doing great and lives in Florida full time. His son also owns two shops in Hudson, WI.)

AASP-MN News

LEGISLATIVE UPDATE

2016 Window Closes on AASP-MN Insurance Claims Practices Legislation House and Senate Committee deadlines came and went, and no insurance legislation made its way to the House or Senate floor that could serve as a vehicle for our 2016 AASP-MN insurance claims practices amendments.

We had three objectives this year which were carried over from 2015. We sought enactment of provisions to prohibit insurers from requiring an insured or claimant to go to a particular repair shop to obtain an estimate. We also proposed to prohibit insurers from requiring the use of a particular electronic estimating system or a particular software program for the procurement of parts. These were the issues on which we had some success in the Minnesota Senate in 2015 – but for which we failed to secure House support in the House-Senate Conference Committee, in which jurisdiction over Department of Commerce matters.

As we worked to line things up for 2016, the Senate asked that we demonstrate some progress in the House toward acceptance of the AASP-MN provisions. To this end, we met with several legislators, as well as with representatives of various insurance companies and the insurance industry association. These discussions did not produce progress in terms of insurer acceptance of any of the three AASP-MN provisions.

Without some consideration from insurers, the AASP-MN provisions would have generated controversy – which the House Committee Chair preferred to avoid. And the insurance industry clearly had time on their side this year. The 2016 session is the shortest in recent history – perhaps the shortest session ever.

With just 10 weeks from start to finish and less than four weeks to Committee deadlines, there was little time to schedule a hearing on our legislative proposals and no bills emerged which dealt with the insurance matters to which our provisions were germane.

Now we are watching to see what happens generally on business and environmental issues. Even as the 2016 session comes to a close, we will be reworking our strategy for the 2017 session.

Our AASP-MN Committee process is ongoing and we will keep members informed of our work. Members are

by Kevin Walli, AASP-MN Lobbyist

encouraged to reach out to legislative candidates who seek to represent both your home and your business locations. All 201 legislators – 67 Senate seats and 134 House seats – are up for reelection this November. We should make sure they hear the auto repair industry’s perspective as they are seeking votes.

AASP-MN on Facebook! facebook.com/aaspmn

AASP-MN News

May 2016 7

LOCAL NEWS

ANNUAL MEETING AND LEADERSHIP CONFERENCE Overall, the response from attendees was overwhelmingly BRINGS REPAIRERS TOGETHER FOR EDUCATION positive.

If there is an area of the industry with which you are “This was by far the finest single-day event that I’ve been concerned, there is no better resource to turn to than AASPto in a long, long time,” says Roger Bonn of Peter’s Body MN. On April 14 at the Ramada Plaza Minneapolis, the associ- Shop (St. Cloud). “The speakers were world class, informative ation held its 2016 Annual Meeting and Leadership Conference and on point to what is going on in our industry. And from a to address the issues in the automotive service industry social standpoint, it was so much fun connecting with my through education and networking. friends and peers. It was the best event I’ve been to in quite a With seminars ranging from consolidation to increasing while.” diagnostic labor sales to effective The event concluded with leadership to scheduling and a networking roundtable, more, there was a presentation followed by a social hour and for everyone at this event. The vendor showcase, during day opened with Richard Flint’s which attendees could conAMI-accredited seminar, “Masnect with the companies that tering the Five Skills for Effechelp their businesses succeed tive Leadership,” sponsored by and finally, an entertaining inAxalta Coating Systems, during dustry dinner that brought which Flint examined the tools popular comedian C. Willi and traits required for establishMyles to the halls of the Raing a leadership position in times mada Plaza. (Myles’ presentaof transition. Following Flint’s tion was generously seminar, Brad Mewes of Supplesponsored by Dent Impresment! explored strategies to help sions.) navigate a consolidating industry In addition to the excitein his seminar, “Help – My Inment from attendees, vendors dustry is Consolidating!” sponleft the night exceedingly sored by the Bill Smith pleased as well.

Foundation.

“We’re so happy to particiAfter these exciting presen- (Clockwise from top left) Immediate Past President Tom Gleason (left) pate in this event and apprecitations, attendees broke for the ate being invited,” says passed the torch to incoming President Greg Kasel; (l-r): Jim AASP-MN Annual Meeting, Mitchell International Senior Siegfried, Wayne Watson and Tom Gleason; Attendees came out in luncheon and keynote address.

Marketing Manager Pauline droves for enticing seminars and presentations; Executive Director Once the association distributed Judell Anderson and Office Administrator Jodi Pillsbury were honored Perenack who was at the venfor their years of service on behalf of the industry. awards and presented the new dor showcase. “Every time I 2016 Board of Directors, the walked around the room, atkeynote, “No More Excuses, It’s Non-Negotiable” by Sam Sil- tendees were having great discussions and connecting with one verstein of Sam Silverstein, Inc. and sponsored by CBIZ AiA another. There was a close-knit feel to the event, even though and Meadowbrook Insurance, took guests through the “non-ne- there were a lot of people. Attending this event really helps us gotiable” parts of running a business such as the company mis- bring our brand to the area and allows us to connect with our sion, beliefs and values. customers to answer any questions they may have.”

In the afternoon, attendees chose between three breakout AASP-MN TO HOST A NIGHT OUT WITH THE SAINTS sessions: “Building Your Accountable Organization” by Sam AASP-MN is pleased to announce it will host “A Night Silverstein and sponsored by United Fire Group, AMI-accredited “Increase Your Diagnostic Labor Sales” by Steve Taylor of Out with the Saints” again this year. “Last year’s event was so Action Business Solutions and sponsored by AASP National or well attended and so much fun, we had to do it again,” said Ex“Collision Workflow: Better Scheduling = Greater Success” by ecutive Director Judell Anderson.

Bring your family, employees and friends out to watch an Kent Carlson of Collision Resources, Inc. and sponsored by exciting game of baseball as the St. Paul Saints take on the WiPPG Automotive Refinishes. All three presentations left attenchita Wingnuts, at 7pm on Wednesday, August 24 at CHS dees feeling rejuvenated with relevant information that could Field. be brought back to improve shop business.

AASP-MN member Carl Thomas of Lancer Service Auto Back by popular demand, Josh Dye of Convene, LLC Care (St. Paul) will host a tailgate party prior to the game and closed out the slate of seminars with the AASP National-sponprovide free parking for those that attend. Please visit sored presentation “Authentic Persuasion: Communication aaspmn.org to register.

That Moves Others to Action.” Dye discussed the ways to improve your persuasive skills, such as undoing the “sales-y” nature of persuasion and how to confidently ask for what you want.

8 May 2016

AASP-MN News

2016 SKILLSUSA CONTEST WINNERS ANNOUNCED The 49th Annual Minnesota SkillsUSA competitions for collision repair and automotive service technology were held Saturday, April 2, at St. Cloud Community and Technical College.

The competition allows high school and college students to demonstrate their abilities and talents in collision repair and automotive service.

AASP-MN volunteers were out in force to help plan, organize and judge the competition.

Congratulations to the following SkillsUSA contest winners: Auto Refinishing Technology High School Division 1st Place Harrison Nordby, Intermediate District 287 2nd Place Trent Kelly, Intermediate District 287 College Division 1st Place Andrew Vodak, Ridgewater College, Willmar 2nd Place Dylan Stiechen, Riverland Community College, Austin 3rd Place Andrew Rogotzke, Ridgewater College, Willmar Collision Repair Technology High School Division 1st Place Trent Kelly, Intermediate District 287 2nd Place Harrison Nordby, Intermediate District 287 College Division 1st Place Andrew Stewart, South Central College, Mankato 2nd Place Ian Schele, St. Cloud Technical & Community College, St. Cloud 3rd Place Joshua Shaw, St. Cloud Technical & Community College, St. Cloud Automotive Service Technology High School Division 1st Place Eric Tahtinen, Denfeld H.S. 2nd Place Dahlton Fillipi, Faribault H.S. 3rd Place Hunter Aguilar, Secondary Technical Education Program (STEP) College Division 1st Place Ryan Poppen, MN State College, Moorhead 2nd Place Robert Lemke, Ridgewater College, Willmar 3rd Place Josh Schmitt, St. Cloud Technical & Community College, St. Cloud

AASP-MN News

May 2016 9

The first place winners will go on to compete in the national SkillsUSA Championships this June in Louisville, Kentucky.

“These students are demonstrating more than just their skills; they are proving that our workforce is prepared to lead the way in every technical area our country needs to maintain a strong global economic presence,” said Jennifer Polz, SkillsUSA State Director. “We are very proud of this talented group of students who are truly champions dedicated to excellence in their trades.”

FINISHMASTER ACQUIRES LOWELL’S FinishMaster, a leading distributor of paint and related products in the United States and subsidiary of Uni-Select Inc., has completed the acquisition of substantially all of the operating assets of Zitco Inc. doing business as Lowell’s PCE. This acquisition significantly broadens FinishMaster’s reach in the Minneapolis/St. Paul metropolitan area.

Lowell’s has been a key PBE distributor in the Minneapolis/St. Paul market for more than 40 years. A customer-first mentality has attributed to continual

10 May 2016

THANK YOU TO OUR SPONSORS Gold Sponsors Auto Value Parts Stores /APH Autoshop Solutions Axalta Coating Systems CBIZ AiA Meadowbrook Insurance PPG Automotive Finishes United Fire Group Silver Sponsors aaa Auto Parts Dent Impressions Enterprise Rent-a-Car LKQ/Keystone Automotive Lowell’s Performance Coatings Midwest Parts Advantage Mitchell International O’Reilly Auto Parts

growth in their market. Operating from one location in Edina, MN, the team had developed long-standing relationships by providing consistent service and technical support.

“Our companies share a customercentric focus and our commitment to excellence in service will strengthen as we join as one team. Combining experience and local market knowledge equips us to anticipate and exceed customer

AASP-MN News

PAM’s Auto, Inc. R.O. Writer Suburban Chevrolet Other Sponsors AASP National Choice Auto Rental Dentsmart Paintless Dent Removal FinishMaster Global Finishing Solutions Hertz Corporation Insurance Brokers of MN, Inc./ The Jensen Agency Kukui Corporation Net Driven Sherwin-Williams Single Source, Inc. Valspar expectations in the service and support we provide. We are happy to welcome Lowell’s to the FinishMaster family,” stated Steve Arndt, President and Chief Operating Officer of FinishMaster.

“This acquisition is a great example of FinishMaster accelerating growth in a key market, which directly aligns with our profitable growth strategy,” added Henry Buckley, President and Chief Executive Officer of Uni-Select.

NATIONAL NEWS AASP-MN JOINS NATIONAL ASSOCIATION BOARD MEETING IN MISSOURI On Friday, April 8, representatives from AASP-MN joined other top industry associations from around the country at the Hunter Engineering headquarters in St. Louis, MO for the semi-annual AASP National Board meeting. The event kicked off with an exclusive tour of the Hunter Engineering facility, which demonstrated all parts of the company’s operation from product conception to the minute details involved in construction, rigorous quality testing and more. Guests were also invited to witness the Hunter Engineering private collection of classic cars.

Once the tour was finished, the state representatives sat down for the semiannual meeting. Each individual state

members,” he stated. “Members who participated in our programs did well this year. There was about $78,000 in rebates distributed through the uniform program, about $68,000 in dividends through our United Fire Group program and we’ve distributed $15,000 in post-secondary scholarships.”

Sjolseth followed up by discussing AASP-MN’s MNCARS initiative and goals of that program.

“We’ve received $250,000 to help recruit new students into post-secondary automotive repair programs,” Sjolseth explained. “This money was not just raised through local vendors – much of it was donated by our membership, which we are proud of.”

Tschida then outlined the association’s proposals in dealing with steering

AASP-MN Collision Seat Bruce Tschida and Executive Director Judell Anderson attended the AASP National Board meeting.

Hunter Engineering Central Division Manager Larry Watson took the members on a tour of the facility.

reported on issues facing their local industries and the solutions that have been implemented to address them. Minnesota was represented at the meeting by delegates Bruce Tschida, Dan Sjolseth and Executive Director Judell Anderson.

Each state went through its area’s universal industry issues with labor rates, insurer interference and employee rights, as well as some of the more individual struggles being faced in their localities. When it was AASP-MN’s turn to present, Tschida began by going through the financial successes that association shops were able to partake in through membership.

“We had an all-time high membership for the second consecutive year in a row with a 94-percent retention rate of our

and insurer mandates in the current legislative session, as well as AASP-MN’s work with the Minnesota Pollution Control Agency to obtain affordable air quality permits.

Finally, Anderson and Sjolseth discussed the upcoming Get to Know Your Neighborhood Auto Repair ProTM radio campaign, playing the newest commercial intros for the Board. Participating shops receive between 100-200 shop mentions with their name and location.

Overall, AASP-MN representatives demonstrated to the other state affiliates the success that can be had when dedicated individuals contribute time and effort to their industry.

SERVICE STATION & GARAGE LABOR BOOM Service (labor) billings of service stations and garages are booming.

Six Major Takeaways • Service station and garage labor billings increased at a 3.7-percent average annual rate during the past 10 years (2004 to 2014), despite a 9-percent decline in the total number of service station and garage outlets.

• Service stations and garages increased purchased service $5.2 billion from 2004 to 2014, generating 30 percent of total purchased service growth across the car and light truck aftermarket.

• Service stations and garages expanded purchased service volume at a faster annual pace than purchased service sales across the entire light vehicle DIFM (Do-ItFor-Me) market: 3.7 percent versus 3.1 percent.

• Service stations and garages increased light vehicle purchased service at a faster annual pace than their car and light truck product sales. The 2.6 percent average annual product gain recorded by service stations and garages between 2004 and 2014 was 30 percent less than their 3.7-percent average annual growth in purchased service billings.

• Purchased service generated nearly half of total business growth recorded by service stations and garages between 2004 and 2014.

• Service stations and garages boosted purchased service volume per-bay nearly 50 percent over the past 10 years.

DOMESTICS TOP SCRAPPAGE Despite a strong recovery of new car and light truck sales over the past four years (2011 through 2014), light vehicle scrappage rates in the U.S. remain unexpectedly low. Due to higher domestic

continued on page 14

12 May 2016

AASP-MN News

AASP-MN News

May 2016 13

NATIONAL NEWS

vehicle scrappage rates (compared to foreign), domestic VIO (vehicles in operation) share in the U.S. is falling at a faster pace than domestic nameplate new car and light truck sales share. This has significant consequences for the domestic and foreign nameplate mix of aftermarket product volume, today and in the future. continued from pg.12

Six Major Takeaways • Although rapid growth of new car and light truck sales generally

increases scrappage rates across the U.S., scrappage remained at belowaverage levels between 2011 and 2014. Despite new car and light truck sales increasing 30 percent between 2011 and 2014, annual scrappage of cars and light trucks in the U.S. fell from 4.8 percent to 4.6 percent.

• While light vehicle scrappage rates remained low during 2011 through 2014, scrappage varied

•

•

•

•

significantly between domestic and foreign name plates in the U.S. Domestic nameplate cars and light trucks accounted for over twice as large a share of light vehicles scrapped between 2011 and 2014 than did foreign nameplates.

Soaring new foreign nameplate car and light truck sales are combining with low foreign vehicle scrappage to dramatically increase foreign nameplate VIO share across the U.S. Despite averaging 61 percent of cars and light trucks in operation from 2011 through 2014, domestic nameplates generated over twothirds of light vehicle scrappage during these four years.

Lang Marketing projects the increasing number and share of foreign nameplates on U.S. roads will boost aftermarket product sales of the foreign nameplate aftermarket over $16 billion from 2015 to 2020, at user-price.

Courtesy of the Lang Aftermarket iReport

Welcome New Members: APRIL 2016 Aamco Transmission Maplewood Automotive Art Northfield Johnson Auto Repair Duluth Mainstreet Automotive Lakeville Sundance Automotive Marshall 14 May 2016

AASP-MN News

ESTIMATING TIPS

LKQ Estimating Guides – When replacing a component with an LKQ or used part, it is important that you follow the recycled estimating guide for your system or you will likely not be capturing necessary labor items that are associated with the use of LKQ parts.

CCC/Motor utilize the RACE guide, which can be found at www.motor.com/wp-content/uploads/2015/11/RACED-GTE_2015_October.compressed.pdf

Audatex shows Recycled included and not included operations in the Audatex Database Reference Manual found at www.training.audatex.us/otc4-viewdoc.asp?ID=802 Mitchell does not print a separate guide for recycled assemblies, but they can be found within the estimating system.

Clear Coat Extension in Audatex – When refinishing a part, it may be necessary to extend the clear coat to the edge of an adjacent panel. This formula is not supported in Audatex and the estimate user will need to select either the full refinish allowance or the blend refinish allowance, or create a manual entry for the operation they wish to accomplish. It would be up to the discretion and judgment of the professional estimate preparer to determine which operation best suits their repair situation. This can be found in DEG inquiry number 8462.

Manual change to a line of an estimate – If the estimate user changes a line in the estimate, each estimating system notes that there was a change:

Audatex shows at the bottom of every estimate in the ops code that an asterisk (*) = User-Entered Value

CCC also states in the footer of an estimate that an asterisk (*) or double asterisk (**) indicates that the parts and/or labor data provided by thirdparty sources of data may have been modified or may have come from an alternate data source.

Mitchell shows at the end of an estimate that an asterisk (*) = Judgment item.

Bumper prompt in CCC One – When selecting the bumper prompt option in CCC One, it is important to consider how the bumper will be refinished. If you are painting the bumper cover with the vehicle BUT you need to add a flex to a different clear coat mix, CCC states in DEG Inquiry 5321: According to the “Guide to Estimating,” page G36, “any component clear coated as a separate procedure,” is not included. If the Bumper Cover requires a different clear coat mix because of flex additives, a separate procedure is required. This holds true for the majority of flexible components and recommended refinishing techniques.

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.

AASP-MN News

You can view these tips and others on the DEG website, www.degweb.org.

May 2016 15

16 May 2016

AASP-MN News

AASP-MN News

May 2016 17

18 May 2016

AASP-MN News

AASP-MN News

May 2016 19

20 May 2016

AASP-MN News

AASP-MN News

May 2016 21

CASH IN ON YOUR MEMBERSHIP!

These Bankcard Sales People Are Driving Me Nuts!

Let’s face it. Bankcard processors love automotive repair shops because of the large sale amounts. They’d much rather accept one of your $500 sales than 100 coffee shop sales worth five dollars each. That’s why you have so many sales people calling constantly.

Each one claims they can save you money when they don’t even know what you’re paying right now. Very interesting!

It’s hard to know if you’re being offered a good deal without understanding the basics of bankcard pricing. To say the least, with all the variations of cents, percents, monthly fees and annual fees, it’s no wonder most shop owners set their statement aside and only hope they’re getting the best deal. How, then, can you tell if the next person who calls has a better offer?

First, it’s helpful to understand all three elements of bankcard pricing, the first two of which you can do nothing about.

1.Interchange: This is what the bank that issued the credit or debit card to your customer receives and it’s the largest part of your monthly cost. Each card type (Rewards, Debit, Traditional, Business, Hand-Keyed, etc.) has a different Interchange fee. Literally, there are hundreds of card types, each with their own specific interchange amount. There is nothing you can do about interchange.

2.Assessments: Like interchange, there’s nothing you can do here. With all of the banks that issue credit and debit cards, something needs to tie them together and standardize the pricing. That’s where Visa, MasterCard and Discover come in and their fee, called assessments, ranges from .11 percent to .13 percent.

3. Bankcard Processors: Here’s where you can save some money. First though, know it’s the processor that does the work – everything from approving the sale to transferring the money to your account. Among other things, they also host the call center and provide your monthly statement.

Rather than having a bankcard telemarketer insist he or she can

reduce your expense, this is your chance to take charge of the conversation and ask some pertinent questions. The basis of each is, “How much do you charge over cost (Interchange and Assessments)?”

Here are some “over cost” questions to ask: • What percentage do you, as the processor, add to the sale amount?

• How much is your authorization charge?

• What about flat monthly fees (Statement fee, Data Compliance or others)?

• Do you have a batch-closing fee?

• Are there any annual fees?

• Do I have to buy new equipment? If so, what’s the price?

If you can get those answers from both your current processor and from whoever wants to be your processor, you will be able to compare apples to apples and make a good decision.

You will also want to know how long the contract runs, and more importantly, if you can get out at any time with no early termination fees.

Equipment is another issue, especially with chip cards. Find out if the potential processor requires the purchase of a new terminal. Or, if you are processing through a point-of-sale system, ask if you will need new software. When it comes to leasing, especially standalone terminals, be very cautious. Most often, these are noncancellable four-year leases in which you will pay many times what an outright purchase would cost. Generally, these are bad, bad deals and there is no way out of the 48 monthly payments.

If you have questions, want more information, or would like to see if AASP-MN’s bankcard service can save you money, please contact Mac Hardin at (800) 999-4399, or by email, mach@retailfinancialservices.biz.

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 / dbegley@cbizaia.com 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 / 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.

CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz

22 May 2016

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 651-486-4866 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 Autoshop Solutions Contact: Margaret Klemmer 888-991-3449 / margaret@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up).

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.

Net Driven Contact: Jon Napoli 877-860-2005, ext. 400 / jnapoli@getnetdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. 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.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 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.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aai-assessment.com www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

Mitchell International Contact: Mitchell International Representative 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-MN News

PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@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 Members receive a 20-percent discount on one-onone sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 25-percent discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.

LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 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.

AASP-MN News

May 2016 23