But what you do need is an all-round business plan that includes how to implement AI to achieve your goals

Over the past few years, the buzz around artificial intelligence (AI) has become hard to ignore, especially in the automotive industry. It’s no surprise. Recent reports have shown that businesses utilizing AI in their operations are reporting a 15-30 per cent increase in revenue.

Though the fundamentals of AI are over 70 years old, the recent release of large language models like ChatGPT has created an inflection point. This has transformed advanced uses of AI from conceptual ideas into key components of strategic planning sessions — from boardrooms to factory floors.

However, after spending the last year speaking about AI at industry conferences, it has become evident that many companies in the auto part industry are still grappling with how to fully harness the potential of AI-powered technology. Many indicate they are developing an “AI strategy,” but there is no such thing as an AI strategy. What companies need to be assessing are forward-thinking business strategies that AI supports.

Solving real business challenges

The automotive industry is a prime example of a sector that is often “data-rich but information-poor.” Challenges around managing large inventories, complex supply networks and vehicle fitment data have historically constrained companies, as analyzing such vast amounts of data often exceeds the capacity of even large organizations.

However, with the right tools matched to the right strategy, AI can thrive in this environment — especially when it comes to extracting key insights. Below are just a few key industry challenges where AI is bound to make a huge impact:

Inventory management

Auto parts businesses often face regular instances of poor inventory management due to a lack of data. By studying real-time information, market tendencies and seasonal changes, AI can enhance inventory control by processing and analyzing more data, improving accuracy, and reducing errors typical of manual forecasting methods.

Dynamic pricing strategies

Real-time overseeing of market trends and competitor prices is what AI does best. Therefore, companies can make instant adjustments that will keep them competitive as well as maximize profits. Properly integrated with other systems this allows businesses to overcome delays and errors inherent in conventional processes enabling them to capitalize on market opportunities.

Enhanced customer experience

AI can analyze real-time customer data to offer personalized recommendations and support. This proactive approach boosts satisfaction and loyalty by delivering tailored experiences that meet modern consumer expectations. By incorporating AI into customer experience strategies, businesses can swiftly adapt to changing preferences, outperforming traditional segmentation methods.

AI not only makes processing data easier and faster but also makes significant progress in detecting inefficiencies and preventing their costly consequences. For example, Predii uses the power of artificial intelligence to analyze service data for prediction of what might go wrong with a vehicle’s component. At my company, Tromml, we utilize AI to analyze large amounts of sales data in real time, uncovering insights that often go unnoticed through manual analysis.

However, with the right tools matched to the right strategy, AI can thrive in this environment — especially when it comes to extracting key insights.

AI needs a purpose

Tying AI to clear business objectives isn’t just critical for prioritization; it’s essential for the technology to function effectively. Many modern AI systems, particularly those that leverage machine or deep learning, rely on feedback loops to improve over time. It’s much like training an employee. Without ongoing refinement, AI can become outdated, delivering insights that no longer serve your business. A good AI system continuously learns, adapts and provides actionable insights aligned with your goals.

If an AI system is delivering irrelevant or outdated insights, it’s a signal to reassess why it’s not working. Often, this is due to factors like incomplete or poor-quality data or a lack of diversity in data sets. This is why collaborating with your vendor or technical team is key; rather than abandoning the system, work together to refine data inputs and objectives, ensuring the AI evolves to better meet your business needs.

In the end, AI’s true potential will only be unlocked when the right tools are thoughtfully integrated into your business strategy, where you can understand both its limits and its capabilities. This isn’t about chasing the latest tech trend; it’s about using AI to solve real challenges, streamline operations, and foster sustainable growth.

As you engage others around artificial intelligence at work, consider how best it might help us achieve particular targets instead of perceiving it as an end-all solution itself.

Critical thinking among employees should be encouraged so they may identify areas where maximum value addition may be achieved through the deployment of this technology. Every project undertaken under this banner must show clearly what impact it will have on overall performance within your enterprise.

By approaching AI with a strategic mindset, you can not only avoid costly missteps but also position your company as a thought leader, driving innovation and staying ahead in an increasingly competitive landscape.

Lauren McCullough is the founder and CEO of Tromml, an AI-powered business intelligence platform specifically designed for the auto parts industry. She is actively involved with industry organizations including MEMA, Auto Care Association, SEMA and YANG.

This article originally appeared in the September issue of Jobber News

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In the automotive service industry, versatility and skill diversification are vital for meeting immediate customer demands or else you can easily lose business to the competition.

One area that offers immense potential for growth and customer satisfaction is locksmithing.

By mastering key locksmith skills such as key cutting and duplication, computer and module programming, lock picking, decoding and lockout services and transponder and electronic key repair, auto service professionals can provide invaluable assistance to their clients on the fly.

These helpful skills will be instrumental in unlocking new opportunities for your business.

Skill 1: Key cutting and duplication

While a relatively accessible service elsewhere, key cutting and duplication can be useful services to customers at your shop who are in a bind. People frequently lose their keys. Being able to offer new keys quickly can greatly increase customer satisfaction. This is a simple add-on to services when drivers are already waiting to get other work done on their car.

To cut and duplicate keys, you need a professional key-cutting machine. The upfront cost of the machinery may be a hefty expense, however, these machines often pay for themselves as the fee for cutting car keys is sustainably larger than that of, say, house keys.

Skill 2: Computer and module programming

A crucial skill for an automotive locksmith is the ability to safely and efficiently remove modules and computers from vehicles for programming. This requires a deep understanding of vehicle electronics, wiring systems and the specific procedures for each make and model.

Mastery of this skill ensures that the locksmith can perform advanced tasks like reprogramming keys, updating software, and restoring vehicle functionality without damaging sensitive components.

Skill 3: Lock picking, decoding and lockout services

Being able to unlock a customer’s car without a key can be a huge asset to you and draw people in search of these services. Most drivers have locked their keys in their car at least once in their lifetime. The ability to get in and retrieve them quickly and easily can be an invaluable skill and absolutely essential if you are providing roadside assistance.

Most tubular lock picks come with a “decoder,” which lets the locksmith know at what depths the pins break the shear plane. By using the decoding key after the lock has been picked, the locksmith can cut a tubular key to the correct pin depths and thus avoid having to replace the lock.

You can approach this skill in a few different ways. Consider purchasing auto-entry kits online or keeping lockpicking kits on hand to gain entry for older models. Spending the time to teach yourself or receive training on these tools is worthwhile in the long run, considering this is a helpful service that will undoubtedly be needed at some point.

Skill 4: Transponder and electronic key repair

In recent years, it’s become much more common to have a transponder or electronic key fob for your car. These keys can range from the ability to lock and unlock vehicles remotely to more advanced capabilities like moving the car forward and back in a parking space while the keyholder is outside the vehicle.

Much like learning different types of locks, learning different programming procedures for transponders and electronic keys takes time. However, the positive impacts this will have on your business are seemingly limitless.

Learning how to program, troubleshoot, replace the battery, and sync electronic keys means you can offer additional services to improve your bottom line and customer satisfaction.

Unlocking new opportunities

Mastering essential locksmith skills for a range of vehicles can significantly enhance your auto service offerings. Each of these skills provides unique benefits that cater to common customer needs, from losing keys to dealing with complex locking mechanisms.

By investing time in learning and perfecting these skills, you not only expand your service capabilities but also increase customer satisfaction and loyalty. Embracing these competencies can quite literally unlock new opportunities, positioning you as a versatile and invaluable resource in the automotive service industry.

Tomer Ruderman is the founder of Car Keys Ottawa, an automotive locksmith service. He is been an automotive, residential and commercial locksmith for, working on small- to large-scale projects across Canada. He specializes in all areas of car locksmithing, specifically car key replication, duplication and ignition repair.

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Unlocking the secret to hiring the perfect candidate

In the fast-paced world of automotive repair, finding the right candidate for your shop can feel like searching for a needle in a haystack.

The key lies not only in the qualifications on paper but also in the intangible qualities that make someone a great fit for your team. Let’s delve into the art of hiring the perfect candidate, one who not only possesses the necessary skills but also embodies the values and culture of your shop.

A compelling advertisement

In the words of Steve Jobs, “The only way to do great work is to love what you do.” When drafting your job advertisement, remember that it’s not just about listing qualifications. It’s an opportunity to paint a picture of what makes your shop special in order to draw forward people with an affinity for the unique culture of your shop as well as the role itself.

Therefore, take your time to craft an ad that showcases the unique opportunities and supportive environment your shop offers.

Consider this approach: “Join our team at XYZ Auto Repair, where we’re not just fixing cars; we’re building relationships. Our shop is a place where teamwork thrives and every team member plays a vital role in delivering top-notch service to our customers. If you’re passionate about cars and value a supportive work environment where growth and development are encouraged, we want to hear from you.”

By highlighting the positive aspects of your shop and appealing to candidates who share your values, you can increase the likelihood of attracting the right talent.

Hiring the perfect candidate for your automotive shop requires time, effort and careful consideration.

Structured selection process

Once you’ve received responses to your job advertisement, it’s time to put your selection process into action. Remember, hiring is not just about finding someone with the right skills; it’s about finding someone who will fit in seamlessly with your team and contribute positively to your shop’s culture.

As the famous quote goes, “Slow to hire, quick to fire.” So, take your time to evaluate candidates thoroughly before making a decision.

Consider the following factors:

1. Personal Connection: During the interview process, pay attention to how the candidate makes you feel. The interview is a microcosm of their interpersonal skills and demeanour in general. Would you want to be reliant on this individual if you found yourself in a crisis because your vehicle unexpectedly broke down? Do they exhibit qualities that align with your shop’s values? Imagine how they would interact not only with customers but also with other team members. You are not just hiring a new employee, you are inviting a new member into your existing “work family.” If possible, schedule a trial day to observe their performance in a real-world setting.
2. Reference checks: Don’t underestimate the power of checking references. Reach out to previous employers and ask a simple yet insightful question: “Would you rehire this candidate?” Their response can provide valuable insights into the candidate’s work ethic, reliability and suitability for the role.
3. Personality profile testing: Consider incorporating personality profile testing into your hiring process to gain deeper insights into the candidate’s personality traits and characteristics. These tests can uncover valuable information that may not be immediately apparent during an interview.

Final Steps

Before extending an offer to a candidate, ensure that you have an employment contract in place. This document outlines the terms of employment, including job responsibilities, compensation and other important details. Having a clear contract not only protects both parties but also sets expectations from the outset.

Hiring the perfect candidate for your automotive shop requires time, effort and careful consideration. While the process may be challenging, finding the right person can transform both your business and your life for the better.

This article originally appeared in the August issue of CARS magazine

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If you haven’t picked up your latest copy of CARS magazine, here’s what you’re missing out on.

TPMS manufacturers warn about the fact that shops are not updating their tools. They first raised concern during AAPEX in Las Vegas last year and we recently caught up with representatives from the companies to dive into the problem in this issue of CARS.

They speak to the challenges shops are facing when they don’t keep their tools up to date, from lost revenue to safety issues. We take a deeper dive into the issue.

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Many of us have been there — the jobber you were tight with has been bought out. There’s a new owner or it’s now a corporate location. Zakari Krieger explores the challenges of keeping that relationship.

Oil changes are one of the top maintenance procedures many drivers ignore. Brian Michel of Grease Monkey looks at how to turn that attitude around.

Want to grow? Want to add a second shop? Erin Vaughan lays out the challenges. But once you clear those hurdles, then you can really start to think about it.

Greg Aguilera offers some guidance on getting your shop where you want it to be. You need a pathway. Here’s how to get started.

We know finding talent is difficult. Alan Beech gives some insight into how your search process can be better to find the right person.

And there’s more like Letters, News, By The Numbers, Class Act and more!

So grab your copy today or read the digital edition here!

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The auto industry is at a three-way crossroads. On one hand, the climate crisis has shown no signs of abating. Conversely, global legislatures are exploring or have enacted environmental policies establishing decarbonization and net zero emission goals for various industries, including insurance. Lastly, the consumer appetite for sustainability and environmental responsibility from businesses, particularly auto insurers’ repair process, is genuine.

In fact, a 2023 PwC survey noted that 77 percent of consumers are willing to pay more for recycled, sustainable or eco-friendly products. A recent World Economic Forum report stated that 65 percent of consumers align their spending with brands committed to a healthier, more sustainable planet.

This situation allows the auto industry to embrace environmental goals, such as achieving net zero emissions. These efforts can yield positive results, such as attracting and retaining eco-friendly consumers, reducing operating costs, and enhancing business reputation. While the path to a net zero emission repair process may have been difficult in the past, current technologies, guidelines, and frameworks have made it a much more achievable goal.

Although progress has been made, the industry still needs to work on balancing net zero targets with profitability, mainly due to the lack of comprehensive data on indirect emissions activities from vendors and suppliers in the claims and repairs process, known as Scope 3. In fact, the World Economic Forum’s Net Zero tracker indicates 40 percent of emissions come from activities in the broader automotive industries. This highlights the need for better data analytics capabilities and collaboration across value chains to meet net-zero goals.

Using estimatics for understanding data’s role in achieving net zero repairs

Despite this, 70 percent of automotive organizations plan to reduce emissions across the entire value chain. While this is encouraging, it may not be enough for today’s eco-friendly consumers who view the climate crisis as an urgent issue that the world’s largest industries cannot wait to address. They want to see real progress through meaningful actions, and the best way to make this progress through action lies within your data.

To achieve net zero emissions, technical and non-technical teams need to understand their data, and groundbreaking solutions can make sense of hard-to-measure Scope 3 CO2e emissions data in the repair workflow. Such solutions include estimatics tools – which help insurers and repair shops assess and calculate repair costs, as we as track emissions activity. Estimatics also encourages more efficient collaboration across a repair shop’s vendors, helping to identify where more sustainable approaches should be made during a repair.

In short, the role of data and estimatics in the claims and repair workflow is central to addressing these challenges and realizing net zero emissions targets.

Strong data analytics capabilities can help your teams achieve their sustainability goals by helping them understand how emissions within a supply chain impact net-zero strategies. This can include assessing sustainable practices among repair shops and their suppliers, OEMs and transportation partners.

Additionally, knowing which parts can be repaired or reused, such as radiators, A/C condensers, wheels and like-new alternators, can reduce emissions and the costs of sourcing new parts. It also prevents the old part from being sent to landfills — which requires additional emissions from transportation. This newfound efficiency helps teams repair vehicles more effectively, resulting in fewer backlogs and quickly returning fixed vehicles to customers.

Finally, regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD) or California’s SB 253 and 261 — which require reporting Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased sources) and Scope 3 emissions data – continue to serve global policy models. Understanding the role data plays in your path to net zero is becoming a requirement.

How pursuing net zero emissions can help repair shops save time and money

This shift in consumers’ sustainability priorities and global net zero and sustainability regulations necessitate new strategies from auto insurers and their repair shops. For example, they can reassess and improve the sustainability data within their value chains. Yet, some still believe prioritizing sustainability or net zero initiatives means sacrificing profitability to some degree.

For example, refurbishing a serviceable engine would not only reduce emissions by up to 85 percent, but it would also save the repair shop time and money waiting for a new engine to be delivered, installed and tested to ensure it works as intended. Although this is a single example, it demonstrates how net-zero initiatives can satisfy profitability demands while meeting the sustainability requirements of the eco-friendly consumer.

In short, aligning net-zero emission practices with profitability becomes an opportunity for cost-effective but environmentally responsible practices. By reframing net-zero, and sustainability more broadly, as an integral part of the business rather than a checklist of to-do’s, insurers can navigate the dual priorities successfully. This approach mitigates the perceived clash and presents a desirable solution where sustainable practices drive financial gain and environmental impact.

The future of the auto industry is becoming increasingly intertwined with sustainability initiatives. And, as consumers and governments demand more environmental responsibility, insurers and their repair shops have a golden opportunity to cash in on their pursuit of net zero emissions.

Bill Brower is senior vice president of industry relations and North America claims at Solera. Paul Prochilo is chief executive officer of Simplicity Car Care.

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Electric vehicles (EVs) provide environmental benefits, enhanced technology and lower fuel costs. But repair shops and fleet operators are facing a pivotal moment as EVs become increasingly prevalent.

Although some repair shops have successfully transitioned, many continue to struggle with effectively servicing EVs due to their unique requirements.

Unlike traditional internal combustion engine vehicles, EVs are equipped with intricate electronic systems, high-voltage components and specialized battery technology. Addressing these challenges requires highly skilled technicians well-versed in EV diagnostics, repair procedures and safety protocols, alongside a developing supply network aimed at minimizing maintenance and repair delays.

Let’s review the various factors contributing to EV repair delays and the challenges faced by technicians, facility operators, manufacturers, and consumers.

Limited service infrastructure

Compared to traditional auto repair facilities, the infrastructure for servicing EVs is still evolving. Many repair shops may lack the specialized equipment, charging stations, proper location or certified technicians to effectively manage EV diagnostics and repairs. This can lead to longer wait times as owners travel to authorized service centers or wait for mobile technicians to become available, especially in areas with limited EV adoption.

EV repairs involve stringent safety protocols due to the high-voltage systems present in these vehicles. Technicians and repair facilities must adhere to strict safety guidelines to prevent accidents or damage to the vehicle and personnel.

Technicians require specialized training to diagnose and troubleshoot issues unique to electric vehicles. This includes handling electric components and following manufacturer-recommended procedures. Furthermore, technicians need an understanding of high-voltage systems, battery management, regenerative braking, electric motor operation, heating and cooling systems as well as using insulated tools and personal protective equipment.

Enhanced diagnostic skills can expedite the identification of problems, leading to faster repair turnaround, increased local billable hours and often lower cost as well as inconvenience to the customer.

Unlike traditional internal combustion engine vehicles, EVs rely on specialized batteries, electric motors and electronic systems, which may not be readily available in local markets.

Supply chain challenges

One of the primary reasons for EV repair delays is the intricate supply chain involved in sourcing parts and components.

Unlike traditional internal combustion engine vehicles, EVs rely on specialized batteries, electric motors and electronic systems, which may not be readily available in local markets. This can lead to extended wait times as repair shops and manufacturers struggle to procure the necessary parts, especially for less common models or older EVs.

As we know, this is not isolated to EV and hybrid vehicles as many new vehicles have experienced computer chip and other component delays leading to new vehicle delivery periods that can be as much as 24 months. The pandemic can’t only be blamed for these issues: I purchased a new 2019 Ram 1500 — although an excellent vehicle, I waited almost four months for a windshield and over six months for a replacement stereo system which is integrated with the navigation system, requiring the entire unit be replaced. This leads to our next factor.

Technical complexity

The advanced technology powering EVs presents a double-edged sword. While it offers superior performance and efficiency, it also increases the complexity of repairs.

Unlike conventional vehicles with familiar mechanical systems, EVs incorporate intricate electronic systems, software integration, and high-voltage components. This complexity can lead to increased potential for breakdown and increased time to repair. It also requires highly skilled technicians with specialized training and tools, leading to a shortage of qualified personnel capable of addressing EV-specific issues promptly.

As of writing, I have two EVs currently at the dealership or waiting for parts. My Kia Soul EV has had a high-voltage battery replaced under warranty but has been waiting off and on for almost six months for parts to complete the repair. My other EV, a Volvo XC90 T8, is currently at the dealership for repair of the electrical system and they have reached out to their technical support team.

Dealers or manufacturers often have the benefit of reaching out to their technical teams either in Canada or abroad to support diagnostic issues, like what we have seen with computer systems and advanced electronics. Unfortunately, independent repair facilities or fleet operators that have not prepared for EVs in their shop may not have this level of support, often needing to rely on the local dealership or manufacturer leading to delays, fewer billable hours and customer frustration.

As of writing, I have two EVs currently at the dealership or waiting for parts.

Manufacturer support and parts availability

The level of support and parts availability from EV manufacturers varies widely, impacting repair timelines significantly.

Manufacturers may have robust support networks with readily available parts and technical assistance, leading to faster repairs and minimized downtime. However, others may struggle to meet demand, especially for older models or discontinued components, resulting in extended wait times and frustration for owners and repair shops alike.

Like computer systems, the advancements in EV electrical and battery systems coupled with limited production have led to some parts not being available.

Software and firmware updates

Although not new in today’s world of computer monitoring and control, EVs rely heavily on software and firmware to control various systems, including battery management, regenerative braking and drive modes.

While over-the-air updates have simplified software maintenance to some extent, they can also introduce new issues or compatibility issues with older hardware. Technicians must stay updated with the latest software protocols and diagnostic tools, adding another layer of complexity to repair processes and potential delays.

Battery­specific concerns

The battery pack is a critical component of any electric vehicle, and its repair or replacement can significantly impact repair timelines. Battery issues such as degradation, cell imbalance or thermal management problems require careful diagnosis and often involve specialized procedures.

Moreover, the cost of replacing a damaged or worn-out battery pack can be prohibitively expensive, leading to longer repair times as owners explore alternative solutions or seek warranty coverage.

Insurance and warranty procedures

Insurance coverage and warranty policies for EVs can also influence repair delays and customer experiences.

Delays may occur as repair shops navigate insurance claims, obtain approvals for repairs, or negotiate warranty coverage with manufacturers. My Kia Soul waited several weeks for various approvals under warranty.

Additionally, limited coverage for certain components or aftermarket modifications can complicate repair processes and lead to longer wait times as owners explore alternative options or seek reimbursement for out-of-pocket expenses.

Despite the challenges, the EV industry is actively pursuing innovative solutions to streamline repairs and reduce downtime.

Seeking solutions

Despite the challenges, the EV industry is actively pursuing innovative solutions to streamline repairs and reduce downtime. This includes advancements in predictive maintenance algorithms, remote diagnostics and modular design approaches that simplify component replacements.

Additionally, collaborations between automakers, repair networks, and technology firms aim to standardize repair procedures, improve parts availability and enhance overall service efficiency for EV owners.

By investing in comprehensive training programs that cover these essential areas and prepare for EVs, repair shops can empower their technicians to deliver faster and more efficient electric vehicle repairs. Additionally, ongoing education and certification programs ensure that technicians stay abreast of evolving EV technologies and industry best practices, further enhancing their ability to reduce wait times and improve overall service quality.

In general, repair delays stem from a combination of technical complexity, supply chain challenges, limited training or knowledge and evolving industry dynamics. Addressing these challenges requires collaboration across the automotive ecosystem, including manufacturers, repair facilities, regulators and consumers.

By investing in training, infrastructure, and technological innovation, the industry can overcome these obstacles and deliver a more seamless ownership experience for EV enthusiasts worldwide.

David Mayers is chief executive officer at Environmental Motorworks, an innovative services company centred on providing hands-on EV and hybrid training to technicians and fleet operators in the automotive and heavy equipment sectors.

This article originally appeared in the Spring 2024 issue of EV World

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The Canadian automotive aftermarket lacks an important seat at the table to be part of the development of the coming electric vehicle industry.

This is an issue with both the mechanical and collision sectors of the automotive repair industry. As a collective group, we have such strength and ability to shape the EV future.

The EV & Charging Expo took place in Toronto from May 1-2, hosted by Electric Autonomy. The show consisted of a trade show, large stage presentations from industry personnel and many breakout seminars presented by industry experts.

While the event was well attended by many in the electric vehicle infrastructure and charging industries, it was noticeable how limited the participation was from the traditional automotive aftermarket in Canada.

As an industry, we have the opportunity to grab and shape the narrative on how the traditional aftermarket captures opportunity and market share moving forward.  Currently, many manufacturers and traditional wholesale distributors in Canada are looking to find ways to create and offer greater value and return on investment from their traditional business models.

 

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Why does the auto care sector need to wait until Year 5 of the vehicle’s age to start thinking about it? The need to rethink and alter the way we are doing business is paramount to long-term success.

The Canadian government has set 2035 as the date for 100 per cent of consumer vehicle sales to be fully battery electric. That is only 11 years away. But based on the participation and engagement from the automotive aftermarket at the recent expo, it seems like EVs in the aftermarket are a second thought, holding a ‘wait and see’ mentality.

Based on many speakers at the expo — including David Giles, president of Powered EV Training and Consulting Ltd. — the future of the shop business in Canada is bright for the owners and companies that plan and embrace the change. This involves modifying the traditional business model of a repair shop towards greater training and equipment investment, focusing on labour margin, service rates and customer experiences.

The EV industry is at an inflection point for demand and supply. The battery and charging infrastructure needs improving and people need to feel confident they can get to where they are going with battery-powered cars. But all of that will not matter if we as an industry do not continue to do what we have done for decades: Adapt and grow with new opportunities.

I look forward to next year’s expo so we can all see the increased industry involvement in the EV space. I hope that the aftermarket industry is not going to just have a seat at the table, but be a leader in the development of this exciting future.

Martyn Johns is a 20+ year veteran of the automotive aftermarket in Canada, most recently with NAPA Auto Parts as National Director. He specializes in service delivery networks and is a leader in electric vehicle deployment across Canada.

EV & Charging Expo 2024

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CARS reached out to leaders in the automotive repair and service sector of the automotive aftermarket to ask them about their thoughts about the industry over the next 12 months. We wanted to know how things will change this year, what’s the biggest challenge and how they can seize the biggest opportunity. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in the February 2024 issue.

Ronald Tremblay, ARA chairman  |  NATA president | Owner,  The Garage

What will change the most for auto service shops in 2024 is the need for a robust human resources plan to sustain a profitable business focused on customer experience.

Shops will need to retain skilled people in their service bays and complete the transition from having established employees to those from a much younger generation. This awesome younger generation has different values and expectations about their lifestyles. Mastering this transition will be crucial for remaining optimistic about the future growth of business in this industry.

Cost of living has gone way up in most provinces. Trades income levels are climbing fast and your business must be able to afford these increases to remain viable.

On the other side of the equation, businesses must remain diligent with their efforts to attract and retain great customers through their digital efforts and word-of-mouth marketing, as well as by maintaining the appearance of their premises, both inside and out. All these things work together to support a growing confident business and will lend well to maintaining the confidence your customers have in your business.

Have a trusted, knowledgeable and confident relationship with your business. Customers today are facing a challenging moment with EV adoption. Being a trusted company in their corner presents the greatest opportunity for growth. This is the year to really listen to your customers and help them face the next five years knowing they are making the right choices for themselves, no matter what those choices are.

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CARS reached out to leaders in the automotive repair and service sector of the automotive aftermarket to ask them about their thoughts about the industry over the next 12 months. We wanted to know how things will change this year, what’s the biggest challenge and how they can seize the biggest opportunity. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in the February 2024 issue.

Costa Haitas, President  |   The Mufflerman

We are enthusiastically looking forward to another year of growth for our shops in 2024. As economic conditions continue to put a strain on the cost of living for many Canadians, our customers continue to turn to our repair centres to assist them in extending the life of their vehicles while keeping them safe on the roads. It’s imperative that shops continue to provide complete inspections of their customers’ vehicles and present them with recommendations on repairs and preventative maintenance services that will keep them safe while avoiding unnecessary costs.

While the need for our services continues to increase, the biggest challenge in our industry is the recruitment and retention of employees. The increased cost of living is also negatively impacting our teams. So shop owners and operators must be running profitable operations to ensure that they can provide their employees with competitive wages.

The biggest opportunity for growth in 2024 will be capitalizing on growing car count through strategic marketing initiatives in your local markets. Shop owners and operators need to ensure that they’re continuously working on delivering best-in-class service to their customers while simultaneously providing a great culture in their shops for their teams. Also, now is the time to start planning and preparing for the future as the landscape of our industry and customer needs are changing.

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CARS reached out to leaders in the automotive repair and service sector of the automotive aftermarket to ask them about their thoughts about the industry over the next 12 months. We wanted to know how things will change this year, what’s the biggest challenge and how they can seize the biggest opportunity. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in the February 2024 issue.

James Channer, Co-founder, COO  |  In Motion Brands Inc.

The 2024 forecast signifies a shift after a positive run. As the market slowed down in late 2023, repair shop owners faced heightened consumer caution amid rising household debt and economic uncertainties. To foster business growth in 2024, repair shops must comprehensively assess all business practices, emphasizing heightened productivity and fortifying their competitive edge.

While facing the difficulty of increasing operating costs, repair shops should prioritize achieving high levels of operational excellence. Enhancing efficiency, optimizing processes and managing costs becomes crucial in navigating a softer market. This underscores the necessity for streamlined operations, delivering an exceptional customer experience and deploying effective digital strategies to sustain competitiveness in a dynamic market environment.

A robust digital strategy emerges as a linchpin for success in 2024 and beyond. According to AIA Canada, 45% of consumers discover repair shop providers through online searches. Recognizing the expectations of digitally savvy consumers, repair shop owners must invest in a robust digital presence, incorporating e-commerce capabilities, user-friendly interfaces and data-driven marketing approaches to attract and retain customers.

Treat the digital strategy with the same importance as a shop management system. Measuring key performance indicators and using reporting tools like Google Analytics and Google Search Console are crucial for monitoring digital KPIs and organic search performance. Proper setup and optimization of these tools are vital. Active collaboration with your digital marketing company can further enhance these reporting tools. Identifying collaborative partners in the industry will aid in navigating the evolving landscape and foster mutual growth in 2024.

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CARS reached out to leaders in the automotive repair and service sector of the automotive aftermarket to ask them about their thoughts about the industry over the next 12 months. We wanted to know how things will change this year, what’s the biggest challenge and how they can seize the biggest opportunity. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in the February 2024 issue.

J.F. Champagne, President  |  Automotive Industries Association of Canada

The combination of lingering inflation, high interest rate with labour shortage will be challenging for auto repair shops in order to continue to service their customers while remaining profitable. How to properly price their services to remain competitive while being limited by the on-going staff shortage will likely remain front of mind.

This year will also provide opportunities for auto repair shops who are looking to grow and expand as some business operators seek to retire and sell their operations.

Labour shortage will continue to be the No. 1 challenge for auto repair shops. Business owners and managers looking to attract and retain high performing employees will need to offer competitive compensation that includes benefits and flexibility in a positive working environment that takes into consideration the needs of new Canadians likely to fill these positions.

Organizations who will make meaningful changes in order to create an environment welcoming to women will likely benefit as well.

I believe there will be opportunities for acquisitions for auto repair shops looking for growth as business owners look to retire in an environment that remains challenging.

The post CARS Executive Outlook 2024: J.F. Champagne appeared first on Auto Service World.

We are well into the first quarter of the year and hopefully everyone is hitting their goals. You have set goals, right?

If not, it’s never too late to sit down and start thinking about where you want this year to go and how you are going to get there. Before my shop opened for the new year, my manager and I sat down to decide what goals we were going to shoot for in a few different categories: Sales, client experience, training and leadership.

We first decided what our weekly sales goals would be based on available technician hours, labour mix and parts margin. These three important KPIs are monitored daily to ensure that the business is making the most out of every day and every vehicle. If we sell all our available hours, ensure our labour mix is 50-55 per cent and parts margin is 55-60 per cent, we’ve had a profitable day.

Once we determined the sales goal that we wanted to achieve, our next step was to figure out how we would get there.

First, having happy, engaged clients who believe in maintaining their vehicle are key to making this happen. Our client communication is excellent and is mentioned the most in our five-star reviews.

Over the years, we have left little gifts for our clients in their vehicles — branded coffee mugs, pens and gift cards to other local businesses. This year, we have decided to partner with a local nut-free bakery, which provides us with chocolate chip cookies. These cookies are placed in the client’s vehicle with a ‘thank you’ sticker, as a small token of our appreciation for the trust they put in us.

Second, we believe that the way to accomplish our goals is by engaging in ongoing training for each member of our team. The technicians and service advisors use an online training program, which feeds them daily training. This is curated for each person based on their skill level to provide them with guidance in areas where they are weaker. This helps them gain confidence in their roles, which ultimately helps the team accomplish what we’ve set out to achieve.

If not, it’s never too late to sit down and start thinking about where you want this year to go and how you are going to get there.

Our additional training goals will be to find higher-level technician training for our A-techs and high-level management training for my me and my manager.

Last, our leadership goals. The University of Regina offers leadership classes for business owners and their staff, which we will be enrolling in this year. By having our staff to gain this type of knowledge, it will not only help them professionally, but they will develop the skills needed to be leaders in their homes and the communities they live in.

We have also decided that if our staff want to be leaders in their professional roles, we need to include them in our strategic plans for the business in a more structured and organized way. We have staff meetings to talk about sales and operational plans, but we wanted to create the opportunity to build a culture of intention and purpose.

We have started “Kinetic Coffee Talk Tuesday” (we run a four-day workweek, so Tuesday is the beginning of our week), a 15-minute meeting where we talk about our intentions for the week, discuss personal and professional goals and share with the group our “Song of the Week”. This song is chosen by a different team member every week as their personal anthem, which is played at the beginning of the meeting for everyone to listen to (yes, this is as awkward as it sounds, but it’s fun-awkward). Their song choice tells us who they are, what they value and how they’re going to show up for the team that week.

(We hope a team member never chooses “Unloved” by Jann Arden; we want everyone to feel loved in our shop.)

By setting goals and sharing our wins, we can start the week in a positive upbeat way, allowing us to aim for the same targets and build strong relationships with each other.

You still have lots of time to make your own goals for the year, so if you haven’t sat down and written them out, personal or professional, please take the time to do so and you, too, can start every day with intention.

Erin Vaughan is the owner of Kinetic Auto Service in Regina

This article originally appeared in the February issue of CARS

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CARS reached out to leaders in the automotive repair and service sector of the automotive aftermarket to ask them about their thoughts about the industry over the next 12 months. We wanted to know how things will change this year, what’s the biggest challenge and how they can seize the biggest opportunity. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in the February 2024 issue.

Greg Aguilera, Director  |  IAC Canada

In 2024, there will be two major factors independent repair shops will need to contend with. Firstly, the normalizing of supply of new vehicles in dealers. This means that the likelihood of people buying a new car will increase, therefore customers repairing older cars may decline. Secondly, the mainstream plug-in hybrid vehicles of the first generation are now coming off emissions warranty so these will come in more often now for repair — not just servicing.

The challenge this year for shops is going to be attracting, retaining and training staff. Although we all are in the same situation from a market perspective, shops that develop a clear sense of vision and direction will be able to build a business that people want to be a part of and remain with.

The biggest opportunity for shops to grow is to capitalize on the work that is left on the table by those shops not investing in the future or admitting the change that is now at our doorstep.

As our industry evolves more quickly than ever before, it’s time to separate the leaders from those who are not willing to invest in themselves or their business in equal measure.

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Image credit: Depositphotos.com

As independent automotive repair shop operators, we can’t sell ourselves short.

As dealers look to make more money, they’re coming after our prime business: Vehicles in the aftermarket sweet spot; those out of warranty where the owner typically turns to our industry for all of their servicing needs.

With the lack of new car sales, they’re looking to attract older ones to keep business churning.

But the consumer has to know that we’re the better choice.

The dealers have more money behind them to market their services. But what we have over them is the ability to provide better service and more transparency in the services we provide to consumers’ vehicles.

Let’s start from the moment they need to reach us. When a customer calls, they’re actually able to talk with someone rather than navigate frustrating phone systems.

Our staff gets to build relationships with customers. Dealers have a lot of turnover, making those relationships difficult to maintain for any meaningful period.

Remember, our techs are trained on working on all vehicles not just the ones dealerships sell. So we’re multi-faceted. We’re used to seeing all sorts of issues, diagnose and repair. Our experience is wide-ranging. Even if they’re willing to take on all makes, their experience doesn’t match up with our techs who are all skilled, licensed people.

Safety is a priority at all shops but is explained better to customers at independent shops because the service advisors are highly trained in vehicle maintenance and repair.

Got an opinion? We’ll happily give you a page to get it off your chest! Send your rant to adam@turnkey.media

We’re also using our products that are warranty-approved, so there is no concern when it comes to vehicle warranties. In fact, customers should consider us a third party that is unbiased about recommending warranty repairs. Our technicians understand vehicle warranties and can spot potential warranty issues before the warranty runs out and can advise customers on how to deal with dealerships in warranty matters. I’ve had to use dealerships for warranty work and have seen their shortfalls first-hand.

And we service vehicles in a timely manner — sometimes while customers wait, eliminating those long waiting periods after dropping the vehicle off for basic maintenance.

And independent shops allow customers to talk to the techs and see their vehicle in the shop so repairs can be explained so customers understand what is being done.

None of this is to say that dealerships are bad places to take a vehicle for service but customer convenience is not their strength.

So we need to promote these advantages more. That’s how we get customers to stay with us for a long time.

While dealers may try to take our business, I don’t feel they’re a threat to our service business — as long as we promote the conveniences our shops offer over them.

Think of it this way: It’s comparable to vehicles serviced at quick lube shops — in and out quickly. That’s not good.

Let’s band together as a professional group and attract more business to our bays by focusing on convenience.

Bob Ward is the owner of The Auto Guys in St. Thomas, Ontario

This article originally appeared in the August issue of CARS.

The post From the Magazine: It’s your Turn: Taking on the new competition appeared first on Auto Service World.

No matter how large our shops are we are small businesses. And as small business owners, it’s impossible not to take things personally.

I embrace changing technology — it brings new challenges daily. We all know times are changing and vehicles are changing along with it.

But most concerning is that people are changing — and the way we communicate with each other.

I can learn new software; I can send my staff to training to understand new vehicle technology. But figuring out people? That’s a tough one.

There’s a strange new attitude among people these days. There’s a sense of entitlement and a ‘blame someone else’ mentality.

So, I ask, where have all the gentlemen gone?

It didn’t take me long in the industry to realize I had to get thicker skin. I lost many nights’ sleep worrying — not about what was really important, like my family, but about Mr. Smith’s intermittent charging problem or the vibration in Mr. Barney’s Jeep.

I took it all personally. And, of course, I was responsible for my employees’ actions, good and bad.

I soon understood that some customers will never be happy. They hate their vehicle and now it’s your problem because you touched it. Over time, we weaned out these folks. We worked hard at providing the best possible service to those who appreciated it.

No doubt we developed strong relationships through this process. It’s these clients with whom we have relationships with to this day.

But this is a new era of people — from your customers to your staff. It’s difficult to develop a relationship by text messages or email. You just can’t beat a face-to-face conversation. Even a phone call allows you to interpret a person’s feelings.

We always said our clients are our best promoters because of word-of-mouth. That’s still true but it exists in a different form. Now it’s all about websites and Google reviews — some from a ‘local guide’ who isn’t even a customer.

Because we are human, things don’t always go as planned and mistakes do happen. When a client brings to your attention a concern or has a complaint, hopefully, they allow you to make it right. They may even tell others how you handled an issue.

But that’s different these days. When a person writes a poor review under an alias, it makes it harder to rectify the problem. We always respond to these reviews by asking them to call us to discuss and resolve the matter — yet, we’ve never had one call.

When researching a business, I often read the reviews. It’s no coincidence most of the poor reviews have similar overtones. It begs the question: Was the business given an opportunity to resolve?

It kind of goes back to the fact that some people will never be happy regardless of how hard you try. I find it easier to concentrate on the positive reviews.

We will continue to provide the best possible service and progress with the times — but as an aging Baby Boomer I miss the good old days.

Bruce Eccles is the semi-retired owner of Eccles Auto Service in Dundas, Ont.

Got an opinion? We’ll happily give you a page to get it off your chest! Send your rant to adam@turnkey.media

This article originally appeared in the June issue of CARS.

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The automotive industry is changing at an unprecedented pace. With the rise of e-commerce and large retail chains, smaller shops are facing increasing challenges in recent years.

Your business must continue to both evolve and adapt to meet the needs of younger generations, while also continuing to cater to their existing older clientele to stay relevant. That’s no secret.

Two of the largest and most influential generations in the marketplace today are Millennials and Baby Boomers. While there are certainly overl­aps in the way these generations approach servicing their vehicle, there are also significant differences in terms of their attitudes and service needs.

Starting at the very beginning of the repair journey — before the client even walks through your door — it’s important to understand how and where both Boomers and Millennials are searching and landing on your business.

Boomers will most likely land at your doorstep after a word-of-mouth recommendation from a friend. Once arrived, they will begin the service process by immediately wanting to speak directly with a service advisor. They place a high value on connection. When your service advisor catches a Boomer on the phone or in person, they should make sure to settle in and take the time to build rapport and create a relationship.

Millennials are in direct contrast and are much more likely to begin their service journey by looking at sources outside your business. If a Millennial knows they require work on their vehicle they will often first begin their search on a local Reddit group asking the community for reliable service centers near them or searching Instagram for recommendations from others.

They may then turn to YouTube to learn more about the potential work required so they are armed with the necessary information prior to establishing first contact with your business. Finally, they will be reading reviews of all the recommended facilities before picking up the phone and calling your shop.

When they inevitably do reach out to you, make sure to validate and affirm the research they have performed. This will build instant trust and will even result in higher net promoter scores. As a business, it’s important that you audit the information that exists on these third-party sites, participate in the relevant communities and invest in SEO so that your webpage tops search results.

Once you have established the initial connection and both the Boomers and Millennials have arrived at your shop, you need to ensure loyalty to keep them coming back for more.

In general, Boomers are more inclined to brand loyalty then Millennials. Once a relationship has been formed and personal connections are made, Boomers will need a compelling reason to jump ship.

The same cannot be said for Millennials. In order to maintain their business, you must first understand their values and prioritize creating a personalized experience. Take the time to understand what they want out of their vehicle first and realize that some of the traditional upselling techniques are going to be very off putting for most Millennials. Be authentic and genuine when it comes to recommending service.

The significant differences between Millennials and Boomers as consumers can impact the way businesses market and sell their products. Shops that understand the differences between these generations and tailor their strategies accordingly may be better positioned to succeed in today’s rapidly evolving marketplace.

Alysa Beech is a business coach with Beech Consulting.

This article originally appeared in the June issue of CARS.

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As shops require more sophisticated tools these days, it’s important to understand the cost of investing, the when, the what to invest in and how to generate income from equipment.

The average per-bay cost is approximately $30,000. For a start-up shop, the general setup of equipment will run you close to $100,000.

Some equipment is a must for all workshops, such as hoists and air compressors.

Let’s do the math for hoists. Key questions: How often are these used and also what type of vehicles you are going to be working on? If you’re working predominantly on trucks, you will need a larger hoist. Working on passenger cars and light trucks? Then you might not want to have the additional bulk that a heavier-duty hoist comes with.

Think about it this way: If that hoist slows down your mechanic by five minutes per job and they do about five repair orders a day and the door rate is $100, then that is a cost per bay inefficiency of $8,800 per year based on 220 working days.

Then there are diagnostic testers and more specific pieces of equipment. Your first question in each case should be how often it will be used.

For diag testers, you might argue that you need this for all vehicles that come in. And you’re probably right. That’s why you want to always go with quality. There are the obvious ones like Snap-on and Mac but there are also other ones such as Topdon, Launch and, one of my favourites, Autel.

When we think about the payback of these scanners, it’s pretty easy if we only look internally. Consider adding value to your customers in terms of easy-to-read printouts or reports of their cars.

Also, think about the diag tool as a system — can it do ADAS, oscilloscope, camera, TPMS, battery testing, etc.? This all leads to a better return on investment.

And don’t forget about perhaps the most underutilized piece of equipment in most shops: Wheel alignment equipment. These can cost you tens of thousands of dollars but be a good long-term investment from not only the number of alignments required to pay it back but also cutting space needed for a regular bay.

A key tip: Avoid buying tools you will use once. Tear yourself away from your internal need to be able to fix everything. You don’t need to be a “one-stop shop.” These tools aren’t an investment —they’re a ball and chain.

Remember, don’t go into investments in any way without a clear understanding of the potential revenue for your store, a plan of how you are going to advertise this as a service, the training of your staff for the equipment, sale of the job and the message to the customer.

Greg Aguilera is a director of IAC Canada, an organization dedicated to the management development of repair shops in Canada. He can be reached at greg@intautoconsulting.com.

This article originally appeared in the June issue of CARS..

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Have you ever pulled up to a retail business and found grimy windows with faded signage? Brown weeds pushing through cracked pavement in a dilapidated parking lot.

Not very enticing, is it?

As an auto repair shop owner, you know your business is more than just fixing cars. It’s also about creating a positive customer experience. And that experience starts with your shop’s curb appeal.

When a customer visits your shop, they should feel confident you’ll take good care of their car. If your property looks dirty or unkempt, they will think you’ll treat their car the same way.

Over the years, we’ve worked with hundreds of shops — and the best ones dial in their curb appeal to attract the right customers.

The street view

When customers drive into your lot, what do they see? Is your shop’s exterior clean and well-maintained? Or could it use, to put it nicely, a little help? That first impression is a make-or-break decision point for potential customers.

To improve your shop’s curb appeal, start by taking a close look at your shop’s exterior. Are your windows clean, intact (no cracks) and free of smudges and streaks? Is your building’s paint in good condition? Are your signs and banners easy to read and up to date?

Improvements like these go a long way toward making your shop look more professional and inviting —and more profitable.

Your online storefront

Curb appeal means more than your building and parking lot: Your website and social media also shape your customers’ expectations.

Your website needs to be up-to-date, attractive and easy to navigate. On both your website and social media, showcase your shop and team with high-quality photos to help customers feel more comfortable and familiar with your business.

Respond quickly to customer inquiries and reviews — just like you’d promptly answer the phone when it rings. It’s one more way you show customers you’ll provide them with excellent service.

Be consistent

Consistency is also key when it comes to presenting an image to the customer.

Customers need to have the same visual experience no matter how they connect with you. Use the same colours and branding on your website, staff uniforms, flyers and posters, and marketing materials as you do on the signage and exterior of your shop.

It can be a jarring experience to see red and white as the main colour on your website, then walk into a shop where greens and blues make up the colour scheme.

It’s all in the details

In addition to your shop’s exterior and marketing materials, don’t forget about the little details that can make a big difference.

Is your waiting room clean and comfortable with plenty of seating and reading materials for customers? Do you offer complimentary refreshments like coffee, water and snacks to help customers feel more comfortable and welcome? Offer free Wi-Fi — a noisy and distracting TV is a fixture in a lot of shops; maybe it’s time to let it go.

Dial in your retail and online presence, present a consistent image across all your marketing and don’t overlook the little things that can set your shop apart. When you do, you can create an inviting and positive experience that keeps customers coming back to your shop — and referring their friends — time and time again.

Joe Flammer is a director of marketing for Turnkey Marketing. Based in Kansas City, he serves as outsourced director of marketing for auto repair shops. Learn more at www.turnkeyautomarketing.com.

This article originally appeared in the June issue of CARS.

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Grocery stores may be the poster child of rampant sticker shock in Canada. But the impact of inflation can be felt anywhere — everything from flights to hotels to cars has seen huge increases in price over the last two years.

Replacement automotive part prices are no exception. Eucon data (based on U.S. and Canadian original equipment manufacturers and independent aftermarket prices) show that part costs increased by 20 per cent between 2019 and 2022. And, according to a recent report published by automotive aftermarket research firm IMR Inc., shops are beginning to feel the pinch.

IMR’s 2023 survey of 500 American independent workshops found that these businesses now view finding affordable parts as their top business challenge. When the survey first introduced the question in 2019, only 16.6 per cent of respondents viewed parts pricing as an issue — way down in the list below more overriding concerns such as diagnostics information and technician shortage.

“The finding affordable parts/parts pricing issue has not topped the list of concerns since we started asking this question at the end of 2019,” observed IMR chief executive officer Bill Thompson. “What is noticeable is the percentage of shops mentioning finding affordable parts has progressively increased over the past few years and in a short 12-month time frame went from 29.4 per cent to 45 per cent.”

He went on to note that the 2023 number is nearly three times higher than both early and mid-2020. More and more shops are indicating that they plan on buying more private-label parts.

Qualitative feedback gathered in the study reiterates two trends. First, most repair customers are asking for less expensive parts. Second, shops do not see this behaviour going away anytime soon.

I cannot imagine the experience of Canadian service shops being much different from what we see above. The problem may be worse here because the weakening Canadian dollar is causing faster price increases than in the U.S. For suppliers (national brands, in particular), retailers and distributors, these findings should be worrying.

Of course, the price hikes are largely beyond their control. But industry stakeholders can action some strategies to help the end customer – or, at the very least, soften the blow. Below are some ideas.

Deepen understanding of product, price dynamics

It seems obvious, but you would be surprised at how many industry competitors largely rely on “gut knowledge” to understand their product position in the market.

Pricing, product portfolio, and placement decisions are often made on small, static data sets that were probably updated a year ago. Even if we ignored the recent impact of inflation, growing product and pricing transparency have necessitated the constant monitoring of competitive and market conditions. Are your parts competitively priced? Are your competitors changing their product offering? How are they displaying their products? How are price changes in the market impacting your sales volume?

Companies need to create a robust, data-driven intelligence-gathering discipline to understand how the market is evolving and alter their tactical and strategic responses frequently to ensure they remain competitive.

Offer value-added services

In a market where cost becomes the overriding factor for a brand, products need to figure out other ways to stand out with customers. For those in the business of selling parts, differentiation can manifest in many ways.

Account managers and sales reps can increase focus on brand communication — why is Part A more expensive than Part B? Why should a customer spend additional dollars to buy a certain product? Other value-adds can be in the form of technician support such as virtual training sessions for purchasing a certain volume of parts.

Short-term focus on opening price points

Let’s face it. Some customers will never get past the price tag. So, you either lose these buyers or you can offer them a different tier of your brand experience.

The ‘good-better-best’ approach exists for some part types but, depending on sourcing flexibility, suppliers could potentially expand the concept to other products. A radiator may not need multiple tiers but at least a lower-cost product could help retain customers.

Enhance volume-based incentives

Workshops generally receive rebates and kickbacks based on their purchase habits. But extraordinary times often call for more-than-ordinary measures. Suppliers and distributors could make temporary tweaks to their incentive plans.

For instance, volume thresholds could be lowered so that customers can get to their rebate levels quicker. Alternatively, the kickback value could be increased. This strategy may have a slight impact on the bottom line but may be a better option for maintaining volume and brand loyalty than lowering prices for single units.

Kumar Saha is Toronto-based vice president (U.S.)/Managing Director (Canada) of global automotive data firm Eucon. He has been advising the North American automotive industry for over a decade and is a frequent conference speaker and media commentator

This article originally appeared in the May/June issue of Jobber News

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The May/June issue of Jobber News is here and it’s your chance to hear what your customers think.

 

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In this issue, we feature the Annual Shop Survey where we asked ASPs about their working relationship with their jobber partners.

And what we found was that ASPs are putting more emphasis on the relationship. Read more about that, why they’re turning to dealers more often and other interesting findings. Scan the QR code in the feature to hear more of my thoughts on the survey.

Sustainability is a major focus for brake manufacturers. Read about why they’re putting more attention here and what they’re doing about it.

Kumar Saha takes a look at what it’s like to sell automotive parts in an era of increased inflation

Come on the road with us and catch up on events you may have missed. Scan the QR codes there to see our highlight reels on Instagram.

Be sure to read our letters page and see what your fellow aftermarket professionals have to say about our recent stories. You can also catch up on the latest news and read up on our By The Numbers section.

Be sure to check out Adam Malik’s editorial as well to get his thoughts on the survey results. There’s all that and more in this issue of Jobber News.

The post Check out the June 2023 issue of Jobber News appeared first on Auto Service World.

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As you know, the alternator plays a big part in the car’s overall performance. That’s why your customers will want to take care of a failing alternator before it leaves them in an unwanted situation. As an automotive service professional, this is one area that can help you stand out with your customers.

Here are signs of a failing alternator and how you should diagnose them.

Lights are dim or overly bright

This seems like a weird either/or scenario but both of these could indicate that there’s an issue with the alternator. What’s happening is that the alternator is not providing the same consistent level of voltage, so it could be underperforming or it could be overperforming. The lights could also flicker. Take a good look at the alternator if that is the case.

Battery is dead

A car battery can die for a variety of reasons. It could be old and at the end of its life or the driver could have accidentally left their headlights on all night. There are other times when the alternator could be the culprit, though.

Check if the alternator is charging the battery correctly while the car is in use. If it’s not, then the battery is going to die faster than normal. Have the car jump started and see if it keeps running. If it does, it’s the battery. If it dies soon afterwards, then that points to the alternator.

Accessories aren’t working properly

A correctly functioning alternator will be able to handle having other accessories run while someone is driving the car. That includes the windows, speedometer and even the seat warmer. If these things stop working right, then that could mean a problem with the alternator.

Check to see if the windows are rolling up and down smoothly, the display is correct and there are no issues with the speedometer. If there are any glitches, it create a dangerous situation, especially on a highway. Take a closer look at the alternator in this case.

The car is not starting or is stalling

There could be a variety of reasons why a car won’t start. One of them could be that the alternator isn’t charging the battery, which means that you’ll hear a clicking sound rather than the engine.

If it’s not the alternator and the battery, it could be the alternator and the spark plugs. The main sign here is having the car stall while out on the road.  In either case, you are going to have to fix the failing alternator situation.

Whining or growling noises

As a technician, you get used to hearing strange sounds coming out of a car.  Over time, you’ll develop an ear that can tell whether the sound is harmless or if it requires immediate attention. If you hear whining or growling noises from the hood, then that means you want to pop it open and look at the alternator.

One of the causes could be due to the belt that turns the pulley that the alternator uses has become misaligned. Also, you might want to make sure that the bearings have not gone bad. In either case, they could be the source of the whining or growling noises.

The smell of burning rubber or wires

Here’s a situation where your sense of smell can play a big part in determining if something is going on with a car’s alternator. It could very well be that the alternator’s drive belt has worn out due to being next to a hot engine all the time. The result will be something smelling like burning rubber combat the lingering smell with a customer air freshener for car.

An overworked alternator can have frayed wires, which will also result in a weird smell. If your customer comes in complaining of this, then you want to inspect the alternator.

There are a lot of different things to look out for when diagnosing a bad alternator. There could even be a battery warning on the car’s dashboard. it might mean something is wrong with the battery or it could be the whole electrical system. All roads almost always point to the alternator.

By checking on this, you can often fix the problem and have a happy customer back on the road again.

Steve Montano is acting president and general manager of operations at Tucson Alternator Exchange. He started as a rebuilder and has worked as a counter salesman and outside salesman.

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The automotive industry is changing at an unprecedented pace. With the rise of e-commerce and large retail chains, smaller shops are facing increasing challenges in recent years.

But while the challenges are great, there are also opportunities to be found. Here are some tips for you as a small shop owner looking to navigate the changing retail landscape.

Differentiate yourself

With so many businesses vying for consumers’ attention, it’s more important than ever to stand out from the crowd. Consider what makes your shop unique and focus on emphasizing those aspects in your marketing and branding efforts.

Whether it’s your products, your customer service, or your location, find ways to differentiate yourself and make your shop a must-visit destination.

Embrace technology

While e-commerce may have posed a challenge to brick-and-mortar retailers, it’s also opened up new opportunities. Consider investing in your social media presence — this is a new way to attract your future customers.

Use technology to streamline your operations and improve the customer experience. For example, implementing a point-of-sale system or mobile payments that make transactions more efficient and convenient for customers.

Build community

In an increasingly digital world, consumers are craving human connection more than ever. Build relationships with your customers. Create a sense of community around your shop. Host events or workshops, participate in local events and engage with your customers on social media.

By fostering a sense of connection and belonging, you can create loyal customers who will keep coming back.

Collaborate

In some cases, teaming up with other businesses can be a win-win for everyone involved. Consider partnering with other local shops or service providers to offer joint promotions or events.

By pooling your resources and expertise, you can create a stronger value proposition for your customers and expand your reach

The retail landscape may be changing rapidly, but there are still opportunities for small shops to thrive. By differentiating yourself, embracing technology, building community, and collaborating with others, you can position your business for success in the years to come.

This article originally appeared in the March/April issue of CARS

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Customer service and customer experience are two critical concepts that are often overlooked by the automotive repair industry. Many shop owners focus solely on providing good customer service. But they don’t realize that customer experience is just as important — if not more.

We’re all willing to spend a lot of money on an experience that we won’t soon forget, like a fancy dinner or a high-end hotel stay. When it comes to an oil change, however, we expect a certain level of service and a fair price. That’s it. While we may be satisfied with the service we receive, it’s not necessarily something that we’ll remember for years to come.

A satisfied customer doesn’t necessarily equate to a loyal customer. Instead, it’s the emotional connection that a customer has with a business that creates loyalty. This connection is what turns a one-time customer into a loyal patron.

How do you create an emotional connection with your customers, especially after the COVID-19 pandemic, where human contact has been significantly reduced? The answer lies in creating a memorable experience for your customers.

Some shop owners believe that providing fast and efficient service at a fair price is enough to satisfy customers. This approach doesn’t create a memorable experience. To truly stand out from the competition, you need to find ways to make your service memorable.

There are several companies out there that excel at creating memorable experiences for their customers, like Starbucks, Lexus and Disney. They train their employees to connect with customers on a personal level. They collect personal information and use it to create an emotional connection.

One effective method to collect personal information from your customers is to use the acronym FORD: family, occupation, recreation and dreams. By asking about these categories, you can collect valuable information that you can use to create an emotional connection.

For example, say a customer mentioned that their son is on a hockey scholarship at Michigan State. The next time they come in, ask them how their son is doing. This will surprise and delight the customer. They’ll appreciate that you remembered something personal about them.

When a customer has an amazing customer experience, price becomes less important. Instead, they focus on the overall value they received. A customer who has had an excellent experience with a service provider is more likely to refer the service to others, leading to an increase in business.

The automotive repair industry must understand that customer experience is just as important as customer service. Personalizing the service by collecting personal information and using it to connect with the customer is an effective way to create an emotional connection. When a customer has an amazing customer experience, they are more likely to become a loyal customer and refer the service to others.

It is crucial for shops to focus on creating a unique and memorable experience for their customers.

This article originally appeared in the March/April issue of CARS

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I’m about to read your mind.

If you recently used your phone to search out a restaurant for dinner or any other local business, I’d confidently say you used Google. That’s because 88 per cent of Canadians start their web searches there.

So when you want to get your shop in front of more customers, the best place to start is with your Google Business Profile (GBP), formerly known as Google My Business.

Google describes GBP as “a free tool that allows you to take charge of the way your business appears on Google Search and Maps.” When customers search its site for any kind of local business — restaurants, hair stylists, auto repair shops — on a desktop or mobile device, they’ll see a list of options on the search results page. Those options include the Google Business Profile listings.

Your GBP is critically important because of Google’s dominance. The closest competitor to Google is Microsoft’s Bing, accounting for less than 4 per cent of searches. For auto repair shops, the number of leads you get from your free GBP listing will almost always outrank the number of leads coming from your professionally-managed website and paid Google Ads — combined.

This means your business has the potential to get as many or more phone calls or forms filled from this free marketing tool than any other marketing source.

So how can you use your GBP to get your phone ringing? Here are three simple steps:

Claim your profile

If you haven’t done it yet, you’ll need to claim your profile. This takes only a few minutes. Many top operators pay thousands of dollars for a website and paid ads but have never claimed their GBP. Studies show 56 per cent of businesses are unclaimed in Google. Again — this is free. Don’t miss out on this opportunity.

Complete your profile

Customers are almost three times more likely to consider a business reputable — and contact them — if they find a complete GBP. Verify your business’s name, address and phone number. Include all the vital statistics: Business category, opening date, hours and services. The more details you list, the more clicks and calls you’ll get.

Connect with customers

GBP isn’t a “set it and forget it” deal. Cars need regular maintenance to run their best, and so does your GBP.  You’ll better connect with customers when you regularly respond to reviews, add photos and updates and keep your holiday hours current. Also, check to see if Google has any “suggestions” to improve your business listing. You may not want to accept every suggestion; approve or reject as needed. Most importantly, keeping your profile updated shows Google that you’re relevant — which pushes your business higher in the search results and makes it easier for customers to find you.

When it comes to your GBP, remember: Claim, complete, connect. It’s free, it’s simple to use, and it works. You’ll get more customers calling, more vehicles in your bays, and more dollars in your bank account.

Joe Flammer is a director of marketing for Turnkey Marketing. Based in Kansas City, he serves as outsourced director of marketing for auto repair shops. Learn more at www.turnkeyautomarketing.com.

This article originally appeared in the March/April issue of CARS

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We’ve all heard how we have to run our shops. Otherwise, mom-and-pop aftermarket shops will not survive in today’s aftermarket.

Today’s reality requires owners to remove themselves from the bays and operate their businesses with a CEO-type mentality. Our business requires 20 bay facilities with 15 of the best technicians money can buy, along with a commission pay structure that includes health care benefits and bonuses.

We need one advisor for every five technicians and a shop foreman to communicate between the advisor to the tech and then from the tech back to the advisor.

Our facilities need to be equipped with the best equipment and latest technology to diagnose, maintain and repair today’s complicated vehicles. Our waiting rooms must be clean and inviting with fresh coffee, cold drinks, snacks and free Wi-Fi. Don’t forget a play area for children to also help ease the stress of our customers waiting. Loaner cars and shuttle services to help maintain customer retention are a must.

Owners must manage production and efficiency while micromanaging and measuring the numbers. If you cannot measure it, you cannot manage it. Watch your gross profit margins, your parts matrix and parts-to-labour ratios. You need to watch your average repair order cost and coach your team to increase your average repair order by upselling work. You need to promote manager positions in every department so your business can eventually run itself without your presence.

Then and only then will you be able to spend your winters down south and the summers at your cottage.

Aftermarket vs dealer

Owning what I believe to be the oldest family-owned aftermarket shop in North America — dating back to 1890 — my family operates businesses in both the aftermarket and dealership sectors of the automotive industry. Understanding the differences between these two sectors within the same industry is important. The manufacturers use their dealerships to help increase one’s lifetime car count, while the aftermarket’s objective is to reduce one’s lifetime car count and make it affordable for the average consumer to manage the cost of this necessary commodity.

With the complicated technology and expense of today’s modern vehicles, it is very difficult for the aftermarket to compete against the manufacturers’ push to get the consumer into a new car. The more expensive a vehicle becomes to keep in service, the sooner it becomes replaced with a newer, more complicated expensive model — which will need to be replaced sooner than the last one. This helps the manufacturer achieve their objective.

But for this industry to survive and flourish, we need to remain in the bays and keep our costs down. This is a very difficult industry but perseverance and dedication will allow you to provide well for your family. 

Expensive endeavour

Math does not lie, so let us finish the equation. It is obvious the aftermarket shop described above is copying the dealership business structure. The cost of operating a facility of this magnitude is actually helping the manufacturers meet their objective. While we are being coached that this is how we will compete against the manufacturers, I believe this business model is instead helping manufacturers take us out of the market altogether.

Our customers are the ones paying for that facility to operate. In turn, this is increasing the cost of keeping their vehicles on the road. That leads to either pushing them into DIY or back to the dealership for a newer, more expensive vehicle.

How I run my shop

I run my shop from the bays. I take on the worst jobs myself. My technician efficiency is poor because the aftermarket has too many one-off vehicles with one-off repairs. It’s just the truth that we all have to accept — we are going to lose money on labour unless we have common vehicles with common problems.

So, while I am dealing with the jobs no one wants to do to keep that vehicle on the road, my fellow tech is capitalizing on creating enough revenue to operate the entire shop. I make more revenue off repairing older cars than maintaining newer ones.

I don’t need advisors; I don’t need to upsell and I don’t need to advertise. I keep my facility costs low. The cheaper I run my operation and the longer I keep a car on the road, then the more money I make over a longer period of time. And the better it is for my customers’ financial well-being.

I believe most of the aftermarket industry is run more like my business model than the new and improved business format. Seventy-two percent of aftermarket shops have revenue of less than $1 million per year while 60 per cent operate with five bays or less.

No free ride

We are being told that we do not know how to run a business properly, that we are crazy, that we won’t last, and that we are doing more harm to our industry than good. Our industry would be better off if we all closed our doors.

I am offended by these accusations. These people are just selling ‘delusions of grandeur,’ and I personally am not buying into it.

I understand that we all opened our businesses with the goal of removing ourselves from the bays one day. But for this industry to survive and flourish, we need to remain in the bays and keep our costs down. This is a very difficult industry but perseverance and dedication will allow you to provide well for your family.

If you’re expecting a free ride in life with winters down south and summers at the cottage, I would highly recommend you pick another career choice.

Rob Nurse is the owner of Bob Nurse Motors in Peterborough, Ontario

This article originally appeared in the March/April issue of CARS

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The March/April issue of CARS magazine has arrived. If you haven’t flipped through the hard copy just yet, here’s a preview of what’s inside.

The cover story looks at the big business of ADAS that the aftermarket is missing out on. Experts weigh in on the importance of shops doing calibrations and the revenue they’re missing out on by ignoring it. Liz Perkins, owner of L1 Auto Group, is our featured guest. She talks about her passion for ADAS, its essential role in road safety, liability concerns and more.

Scan the QR code in the mag or click here for the enhanced media segment where you can hear more from Perkins.

Rob Nurse puts pen to paper for our It’s Your Turn commentary. He believes shop owners are falling for delusions of grandeur in how they’re being told to run their businesses. He sees another, better way, which works for him.

We also explore the dangers of pests in your shop. It’s that time of year they can find their way into your shop, so protecting your shop and customer vehicles is important.

 

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Our columns for this month have Joe Flammer talking about raising your business profile through Google, Alan Beech on the difference between customer service and customer experience and Greg Aguilera offering tips for shops to navigate the changing retail landscape.

Our usual sections like Letters, News, By the Numbers, Class Act (featuring Cambrian College) and On the Road can all be found in this issue.

Don’t forget to check out managing editor Adam Malik’s column on the great shop experience his friend and what you can take away from it.

Click here to read the digital edition of the March/April issue of CARS.

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There’s no doubt that the latest automotive technology has made vehicles safer. It’s also made them more fun to drive. The 21st-century vehicle is equipped for almost any situation, from advanced sensors to rear-view cameras and automated breaks.

However, if modern technology has made vehicles so safe, why are there still 46,000 deaths yearly from automotive accidents? Learn more about the costs of having these extra features and what kind of maintenance these “smart cars” need.

What causes distracted driving?

Numerous studies have shown how distracted driving leads to more than 3,000 deaths per year in the U.S. But that hasn’t deterred people. The prime culprit behind distracted driving is smartphones — the chance of an accident increases by 400 per cent when someone is texting or using their phone while driving.

However, modern vehicles are designed so you no longer need your phone to get distracted. Features in newer cars are designed to mimic smartphone usage — from the touchscreen interface to the apps. Most vehicles allow you to link your phone to the car’s touchscreen menu so you can use the same apps from your phone on your car’s dashboard.

How infotainment features can lead to distraction

The issue of new vehicles contributing to distracted driving came to the forefront when Tesla announced they would allow users to play video games while driving a car. While the feature claimed to only allow passengers to play games, the onboard computer made no distinction between a driver and a passenger — meaning a driver could use the system while driving.

The National Highway Traffic Safety Administration stepped in to investigate the feature. Afterward, Tesla was forced to alter the feature so that drivers could not access it while the car was in motion. Until companies perfect the self-driving car — which could be a long way off — features like these have the potential to be a danger on the road.

Automotive manufacturers continue focusing on infotainment features because it’s one of the easiest ways to differentiate themselves from the competition. However, adding more infotainment can make a car’s dashboard just as bad as a smartphone when it comes to inducing distracted driving.

Studies show that working through a car’s touchscreen dashboard can keep a driver distracted for 40 seconds — long enough to travel half a mile at 50 mph. Touchscreen interfaces in cars use various menus, forcing drivers to scroll through more distractions. The potential for an accident also increases with the car’s speed and how many other vehicles are on the road.

Additionally, like all technology, touchscreen interfaces come with the possibility of malfunctioning. Screens can crack or break or the technology can stop responding to physical input from the user. These issues are distracting and make many of the car’s features inaccessible.

Maintaining car computer systems is more complex

In order for all of these infotainment features to exist in the first place, vehicles need complex computers built into their systems. Most modern cars have computer systems that run on an electronic control unit. This electronic control unit manages all of a vehicle’s functions, from fuel consumption to infotainment and safety features.

Integrating such complex computer systems into vehicles is one of the reasons 20 per cent of the fasting-growing companies in the world are in the technology sector. But with more complex systems comes the need for complex maintenance.

While the electronic control unit is a remarkable piece of technology, like any other car part, it can break down over time. When this happens, many of the car’s electronic systems will begin to malfunction. Since the electronic control unit is responsible for so many things, these malfunctions can range from false warning lights and erratic infotainment systems to engine misfires and more dangerous issues.

The latest and most complex technology in cars also has another downside — many automotive service shops are struggling to keep up with the rapid pace of innovations. Computers are such an integral part of modern vehicles that they require specialists to repair and maintain them. Third-party automotive shops that do not have access to those specialists are less capable of performing repairs, limiting a driver’s options when they need maintenance.

This advanced technology allows car manufacturers to drive more sales in the repair and maintenance of these computer systems. They can dictate and hike up the price of repair and maintenance since no other automotive service provider can do it.

Are infotainment systems a good idea?

While there is no doubt that infotainment systems are here to stay, their adverse effects on the automotive industry can’t be ignored. Making car interfaces similar to smartphones might be more convenient, but it also increases the risk of distracted driving. Additionally, more complex computer systems in cars cause automotive manufacturers to cut out local auto services and charge more for their specialized repairs.

Devin Partida is the Editor-in-Chief of ReHack.com and a freelance writer. Devin covers business technology, Fintech and auto tech

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Automakers with a forward-thinking mindset are offering autonomous driving as more than simply a flashy feature. Instead, the development of autonomous vehicles (AVs) promises to boost mobility, reduce transportation costs, and increase production. Each of these has a possible impact on our economy.

However, it has proven to be far more difficult than anticipated to bring autonomous driving to market. There are doubts about whether self-driving cars can even become a reality due to the industry’s inability to meet aggressive AV development timetables. That remark, however, might not be entirely accurate.

What advantages do autonomous vehicles offer?

The primary selling point for autonomous driving has been enabling safety. Humans are often careless drivers. According to a survey by Esurance, 77 percent of drivers have been in at least one collision, and the likelihood of being involved in one on a 1,000-mile trip is one in 366!

According to the National Highway Traffic Safety Administration, car accidents caused a US$340 billion economic loss to the United States in 2019. And of all the workplace fatality rates, the Bureau of Labor Statistics found that truck transportation was one of the most hazardous, with 27 fatalities per 100,000 full-time employees — a rate almost nine times the average for workplaces.

One of the many economic advantages of autonomous driving is increased safety. Others include:

• Savings on labour: The trucking business has been plagued by a persistent scarcity of drivers, which has increased costs and prolonged delivery times. A younger workforce is not filling the gaps as the driving population matures. As demand increases following the outbreak, Uber and Lyft are also experiencing driver scarcity. These shortages are exacerbated by indirect factors, such as gas prices. To allow society to benefit from these ridesharing services over the long run, an autonomous model must be considered to allow these companies to operate efficiently and save on labour costs.
• Greater mobility access: People who are unable to drive due to physical limitations, poor health, or advanced age can nevertheless access transportation thanks to AVs, giving them freedom of mobility and the ability to live independently.
• Reduced opportunity costs: Humans lose valuable time when on the road, whether they are driving children, performing errands, or commuting to work. People can use the time spent driving more efficiently with the adoption of AVs.

When will AVs make a difference in the economy?

When will AVs become widely used is a question that is prompted by the potential of autonomous driving. They already have, is the response. Although many people could compare AVs to personal vehicles, the AV market is not uniform. Several sectors of the drive towards autonomy are making significant progress, each with its own difficulties and advantages economically.

To begin with, autonomous vehicles are now used in agriculture, home delivery, and warehouse management. Robo-taxis and shuttles are currently in trial stage, carrying passengers in select cities and conditions. Long-distance self-driving trucks are emerging with a higher degree of autonomy than before, which will lead to increased productivity.

A report from McKinsey revealed that autonomous trucks increase their individual operation time from 11 to 20 hours. The increased time on the road will lead to faster shipping times leading to higher shipping capacity and efficiency. All of these facts point to the shift that is currently being undergone by society to realize the economic benefits of autonomous transportation.

Making AVs safer than cars driven by humans

With varying situations and degrees of attention span, drivers are prone to making mistakes while on the road. They make errors when driving as a result of distraction, exhaustion, or intoxication. On the other hand, they are able to recognize and respond to unforeseen issues in circumstances that are challenging for AI-trained systems to comprehend and manage.

Making AVs achieve their primary objective of facilitating safer transportation is a challenging and expensive undertaking. The industry has undertaken IPOs, facilitated significant private investments, and integrated businesses and resources through mergers and acquisitions.

However, there is still room for improvement in the fundamental perception technologies that give autonomous cars the ability to comprehend their environments. A network of suppliers, researchers, investors, and manufacturers working together will allow AVs to realize their full potential.

This ecosystem will be fueled by innovative early-stage firms that will bring new technologies (ranging from sensors to processors) to the table. To enable safe and efficient driving needed for the widespread adoption of autonomous vehicles, AI perception processors must be purpose-built with both extremely high compute power and energy efficiency.

Only then will society be able to capitalize on the economic gains that come with self-driving vehicles.

Sidhart Krishnamurthi is a product manager at Recogni. Before Recogni, he held roles in marketing and business development at Proofpoint and StriVR.

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Let’s talk about equipment. There are things you need to know to give your team the best opportunity to do the job right the first time.

As you’re either designing, building or updating a facility, the right equipment is a necessity. You know from your own experience what it’s like to have the unpleasant task of dealing with poor quality or unreliable equipment.

In general, most modern equipment is pretty good. But there are differences that should be taken into consideration when choosing equipment for your facility.

Let’s look at some key equipment for the typical North American shop.

Hoists

You don’t want to compromise on quality here. And don’t confuse quality with price. The price doesn’t necessarily impact the quality. You need to know the purpose of your hoist. It’s not a one-size-fits-all scenario.

First, figure out what kind of shop you are. For those shops that say they do it all, you need to ensure that you’re getting the hoist that best fits the vehicles you’re servicing

Air systems

As we see more technician tool kits being driven electrically, the need for huge reserves of air in the system may not be needed. If you have, or are considering, air doors then this will play a part in how your air system is configured and how the reserve system or backup system might look.

I normally suggest repair shops have a main and then a small backup, both feeding a common system.

Wheel and tire equipment

Return on investment is key with all equipment. Wheel and tire equipment represent the fastest, or should I say, most obvious payback calculation for most workshops.

With so many options available, I tend to lean toward what I would call a semi-automated machine that will do the heavy lifting and guide the operator so they stay in control over every aspect of the tire change. But get one with a wheel lifter — tire sizes are not going down; they’re only getting bigger.

Battery chargers

From a cost-per-use perspective, this is the most used piece of equipment in the workshop. When you fully charge a battery during service that is a complete value-add to your customer.

Bench systems

Not only do bench systems contribute to the aesthetic of the workshop, but also to its efficiency.

Be wary of manufacturers claiming they have the “most” storage. In a well-run, properly organized workshop, there’s no need for excessive amounts of storage on a technician workbench.

The important items you should keep in mind when thinking about a bench system are: Space for a computer; great lighting; storage for everyday tools; battery charger (if not fitted to your 2-post hoist)

Oil drainers and AC machines can also be stored once for every three to five bays, depending on the use of the workshop.

One other item I’ve discovered to increase the overall efficiency of the workshop is the integration of sinks every three to five bays. This ensures hand cleaning is accessible for the team so they’re not leaving the workshop to clean up — an added efficiency.

When designing your workbench system, it’s key to think about the processes in place and to ensure your workplace is as efficient as possible.

Greg Aguilera is a director of IAC Canada, an organization dedicated to the management development of repair shops in Canada.

This article originally appeared in the February issue of CARS.

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By now, forecasters have come to terms with the fact that nobody could have foreseen 2020. The pandemic disrupted every reliable statistic, leaving experts with nothing more than economic fairy dust to bring make sense out of policy and bring the year into control.

But, going into our current year, we have all the indicative data to assess outcomes. Persistent inflation, rising interest rates, manufacturing backlog, slowing GDP — flashing signs all around. Easy peasy right? Not so fast.

In reality, there is little agreement on anything except for the fact that we may be heading into a recession. We can’t even tell at this point if the contraction will be mild or severe.

In a recent CBC article, BMO’s chief economist Douglas Porter summed up this predictive dilemma for the current year, calling 2023 “a very odd cycle.” The same article acknowledged that “the economy is awash in contradiction and the data are quite noisy.”

Automotive indicators from last year provide a perfect example of these inconsistencies. New car sales volume was down in 2022. DesRosiers Automotive Consultants estimates there were 1.49 million cars sold in 2022 — a decline of about 9 percent from 2021, and the lowest numbers since 2009. But dealer revenue and profits were up, driven by higher margin per car and part sales. Some automakers even reported record incomes in some quarters.

Aftermarket part sales fared even better. Monthly year-over-year revenue results (released by Statistics Canada, up to October 2022; annual results not available as of writing) from Canadian automotive parts, tires and accessories stores show consistent double-digit growth between 2021 and 2022. Yes, part prices went up dramatically in 2022 on the back of inflation but the YoY increases were significantly higher – indicating either more volume or profit.

Will these opposing trends continue into 2023? Will the Canadian automotive industry — specifically the aftermarket — continue to make money, despite the increasingly shaky fundamentals? Or will this be a year of pervasive reckoning?

Here are my thoughts on how the aftermarket may shape up this year.

Aftermarket growth will slow down

This may sound like bad news, but it isn’t when you put it in context. We do not have full 2022 numbers yet (as of writing), but 10-month results from auto parts retailers suggest that annual growth was between 10 and 12 per cent. This was another year of high growth, coming out of the lows of 2020. A three-peat is unlikely.

Recent economic data point to a slowing economy as high interest rates start to weigh down on consumer spending. It will have some impact on discretionary repairs. Inflation will also likely normalize to around four to five per cent, which will dampen the pace of price hikes. Both these factors will impact aftermarket revenue.

On the flip side, new car sales will remain depressed on the back of supply issues and soaring prices, despite far more stable inventory. Even used car sales are expected to flounder in 2023, despite falling prices. Less vehicles added in a recessionary environment is typically compounded by unemployment and low vehicle usage. That will not be the case this year.

Despite the tech layoffs and tightening real estate, job vacancies remain high – hovering around the million mark, according to Statistics Canada. People may not be commuting as much but U.S. data (in absence of Canadian numbers) from 2022 indicate that annual kilometres are growing at a healthy pace. All these factors imply that the car parc will continue to age and operate normally, and will need repair and maintenance services, leading to steady demand for auto shop services.

Based on these counter-indications, I expect the Canadian aftermarket to grow at about six to seven per cent in 2023.

Operating costs will continue to rise

Both wages and labour shortages have continued to intensify since the pandemic. The projected recession may seem like a relief to businesses — at least from the perspective of labour availability — but operators may be in for more rude surprises.

Industries, such as the aftermarket, with a high rate of hourly wage workers will continue to face hiring challenges. Deep-pocketed businesses will outcompete smaller ones with more attractive salaries and benefits. Compound that with higher operating costs, thanks to current interest rates and prohibitive cost of goods, and you get a looming profit killer.

Competition will intensify

This may seem like a cliché but hear me out. In a tight market, companies bring out the usual playbook — promotions, price wars etc. We saw truly little of that in the last couple of years, but with supplies and costs stabilizing, we will inch closer to normalcy. If demand drops dramatically, we might even see some rollbacks and heavy discounting in the latter half of the year.

But the competitive arsenal will be different in 2023 — a trend that will only intensify in the next few years. What will separate winners from losers this year will be the speed and agility of market action. The pandemic and supply chain crisis fast-tracked aftermarket suppliers, distributors, and retailers into digitization.

Competitors who are consistently ahead in this market are leveraging e-commerce, data, and automation to their advantage. They are getting faster and nimbler with their product, pricing, and placement strategies to take more targeted and frequent actions. As markets tighten, these recent investments will continue to broaden the gap between more traditionally inclined businesses in 2023 and beyond.

Kumar Saha is Toronto-based vice president (U.S.)/Managing Director (Canada) of global automotive data firm Eucon. He has been advising the North American automotive industry for over a decade and is a frequent conference speaker and media commentator.

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This year could be another difficult year for automakers and dealers, according to forecasts.

While supply chain disruptions that prevailed in 2021 and 2022 are easing, the situation is not yet expected to return to a pre-COVID state this year. Furthermore, rising predictions of the global recession are putting a dampener on sales forecasts and estimated volumes.

The global auto industry is projected to make almost 83.6 million units of new vehicle sales in 2023. This is a mere 5.6% increase over 2022, according to S&P Global Mobility. On the back of this modest increase, automakers’ overall profitability will fall. As a result, they need to tighten their pricing policies to cater to customers with shrinking wallets.

Nevertheless, 2023 is still predicted to bring some exciting developments for the industry. Here’s a look at some of the top trends we’re expecting.

New car prices will drop

The price of new cars will drop as automakers and dealerships are forced to cater to the reduced purchasing power of customers. This will be a shift from recent OE strategy that saw them focus production on more expensive vehicles during the height of chip shortages. Even if the much-vaunted recession hasn’t hit in full swing, customers will understandably be cautious and seek the best deal. They will intensively research, shop around, compare and negotiate.

The used car market will ease

COVID-19 saw new car prices skyrocket as supply chain disruptions and global pandemonium created shortages and delays. Conversely, this placed pressure upon the used car market, sending used car prices upwards. With the easing of supply shortages and delays, used car prices are expected to plateau and decline throughout the year. For consumers, it’s probably a great time to think about purchasing a used car.

The EV, hybrid push will intensify

This year, we will see several EV models hit the market along with EV variants of existing gasoline and gasoline hybrid models. Chevrolet has several planned, including the Silverado EV as a direct competitor to Ford’s F-150 Lightning. Speaking of Ford, the Explorer EV is also expected to be released. Other popular ICE vehicles are also being made available as electrics, such as the GMC Sierra EV and Jeep Wrangler EV. The trend here is an increase in larger vehicles being made available, which also includes the Porsche Macan EV and Tesla Cybertruck. Other brands are also expanding offerings, such as BMW and its i7; Kia and the EV9. Luxury brands are not exempt with the Maserati Grecale Folgore and the Mercedes-Benz EQG also expected to arrive this year as well.

EVs aren’t everyone’s preference, and automakers know that. They can’t convert their iconic ICE-engine nameplates into EVs, as Ford is finding out with the Mustang Mach-E. Hence, hybridization offers a win-win situation. Some notable names becoming available in hybrid form include the Chevrolet Corvette E-Ray, Porsche 911 Hybrid, BMW XM, Aston Martin Valhalla, Lexus UX, Mercedes-AMG C63, Alfa Romeo Tonale and Genesis G90.

More autonomous vehicles

Autonomous vehicles will become more mainstream in 2023, at least in a semi-autonomous capacity for most. Many cars, trucks, and SUVs offer some Level 1 and Level 2 autonomous vehicle features. You’ll get adaptive cruise control with stop-go, lane centring, lane following, automatic overtaking, and traffic sign recognition. As autonomous tech becomes more commonplace, expect to see more cars driving themselves, at least in part.

Vehicles will talk to each other and their surroundings

The rise of the connected car has been happening for a few years now and is projected to continue through 2023. Vehicles will talk to each other, enabling smarter navigation, traffic jam avoidance, and hazard reporting. Our relationship with cars will change, with connected cars becoming prevalent.

EVs will be easier to recharge

One of the largest hurdles to purchasing an EV is the lack of charging infrastructure. Many remain hesitant to go electric even with the increasing number of EVs with more than 300 miles of range.

It’s true that EV charging still won’t achieve the same speed as pumping a full tank of gas. But the proliferation of fast-charging EV networks is expected to increase exponentially in 2023. Forbes expects to observe a reduction in home charging. And more EVs will receive their top-ups at workplaces, restaurants, shopping centers and dedicated charging stations.

The sales experience will change

Customers will still travel to a dealership to purchase a car, but they will no longer physically shop around. Instead, they’ll use online tools to find the best deals around and research their preferred model and spec. Then, car shoppers will utilize virtual showroom experiences to check out their prospective new car. Chances are that when a customer walks onto the dealer, they already know what they want.

Demand for aftermarket accessories will increase

According to Business Motoring, an 8.5 per cent increase in the demand for aftermarket accessories, such as seat covers, wheels, tires, and tech gadgets, is forecasted for 2023. While car shoppers may be more price-savvy, they will still want to customize their vehicles. The prevalence of high accessory prices, coupled with relatively limited choice at dealerships, will lead to a rise in aftermarket accessories purchased from third-party online and offline vendors.

Carmakers will dabble in subscription services

BMW created an uproar in 2022 when they started charging $18 per month for using the heated front seats on some connected BMWs. Tesla also has the capability to upgrade or downgrade cars via an OTA update. Automakers have been toying with the subscription-based service idea for years and are cautiously experimenting with it now. Customers don’t like the idea of having to pay more for something that’s already installed in their car. You can expect the aftermarket to find ways to crack these systems, too.

2023 will be interesting and remembered

The year is already shaping up to be an interesting year and may well be a pivotal point in automotive history. Auto prices may drop marginally. There will be more EVs and hybrids on sale and charging them will be easier. Furthermore, the sales experience will evolve, the aftermarket will thrive, and car enthusiasts will have plenty to talk about.

Cedric Jackson is passionate about internet marketing, automotive, travel, and the entertainment world. When not busy writing, he spends his time travelling, reading and keeping up with world events.

The post Top trends to expect from carmakers in 2023 appeared first on Auto Service World.

Harvey’s Muffler kept inventory in an on-site warehouse to serve customers faster

Shops need to be less dependent on their jobber to essentially be their warehouse. They’ll find the business smoother to run and customer satisfaction higher if they act as their own warehouse and keep more products within their four walls.

After reading CARS magazine’s May/June issue, I disagree with some of the article, Finding Success, which presented the results of the Annual Jobber Survey — especially when it comes to relying on your supplier as being the warehouse of your stock needs.

We had a pure muffler shop for more than 44 years in Prince George, B.C., which has a population of about 80,000. By “pure,” I mean we only installed exhaust, shocks and struts. We specialized in single and dual custom exhaust systems, carrying stock from one inch to six inches in diameter.

Admittedly, running a mechanical shop is a different game from our shop. Still, I hope some of my experience will apply.

Our fourth bay was our big truck bay with a hoist that lifted 54,000 lbs, allowing us to work on large motorhomes, logging and freight trucks and any large machinery.

After owning it for three years, we built a 2,916 sq-ft warehouse above the shop. Here, we carried more than 80 per cent of the total parts we sold each year. This warehouse kept us going every year.

By having our own stock, we were able to do the job when our customers came in. Every bay that is not

producing presents a loss of revenue, caused by waiting for parts to come from your jobber — if they have them — and your employees are not producing income for the company while waiting for the needed parts.

Something else that helps production: Profit sharing. All of our employees received a portion of profits from daily sales. At year-end, each of our employees received a good portion of the company’s annual profit. Our employees worked like owners. If treated like an expendable employee — and not receiving a portion of the company year-end profits as well — retention would have been very difficult.

For example, three of our employees worked in our shop for more than 40 years. We had another stay with us for 36 years. They were able to do any exhaust job that came our way. They worked as a team, which helped get our customers back on the road quickly and to ensure the next customer was not waiting long. The value of this institutional knowledge can’t have a price tag placed on it. But they were able to be successful because we carried much of our stock on the premises.

Yes, it’s costly to carry inventory. But imagine how much revenue you’ve lost when you couldn’t get the needed parts when the customer was in your shop.

CARS has written about differentiators and standing out from your competition. One idea recently talked about was offering lifetime warranties. After all, if a part is going to fail, it’s going to fail fairly quickly — well before any standard warranty period expires. But offering a lifetime warranty is enticing to the customer because they believe you stand by your product like no one else.

It’s something we offered long before it become a talking point. We honoured all our muffler and shock lifetime warranties and made sure customers were always covered by them. We reprinted invoices from our database for those who misplaced their originals. Most customers lose their warranty slips or forget they had purchased warranty parts — but we always made it a point to check. We also gave everyone a full one-year warranty on the work done that day to ensure they could trust us and that the repair was done properly.

When Lordco, our jobber, built a warehouse in our town, we stopped buying from Alberta. They offered us a very attractive purchasing package and said they would carry the product we were stocking ourselves. This gave us a backup to our own inventory.

We attended Lordco’s annual Trade Show in Vancouver every year and purchased at least $80,000 of stock and got a larger discount and dating on these purchases. It was a win-win deal.

All of this allowed us to grow a reputation and grow our bottom line. Returning customers would tell their friends and family to visit our shop for their exhaust, shocks and struts needs. By word of mouth, people learned that we were honest and got repairs done quickly and properly. Over the years, some of our customers came from as far as 900 km away just to have work done in our shop, then turned around and headed back home.

One last note for all shop owners: Pay your bills on time — or early — and in full. This is the thanks you give to your supplier for all they are doing for you. Without a solid jobber on your team, you’re losing the game.

Look after your customers with your own inventory and they will return and get their family and friends to come to your shop too.

So work with your jobber properly, negotiate your discounts, cash discount and dating. You will have a larger profit at year-end. We certainly did.

John Enemark was the owner of Harvey’s Muffler in Prince George, B.C., until his retirement in 2021.

This article originally appeared in the Nov/Dec 2022 issue of CARS.

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The AC temperature after repairs. This type of picture may be included in the inspections being sent to the customer

You should be paid for diagnostic time. You should be paid for your training, expertise and the tools needed to solve the issues presented by today’s complex vehicle systems.

Yet, many shops struggle with their customers over this resulting in lower margins and customer distrust.

Much of this situation is generated by the misinformed public believing that all a shop needs to do is pull a code that tells them exactly what needs to be fixed. Adding to this negative belief is the fact that some parts chains offer drivers free system tests just to sell them the part that is related to the code that they find. And of course, doing a quick search on the internet doesn’t help this situation either.

We need to take steps to educate our customers in order to overcome these beliefs. This education will not only apply to the diagnosis of drivability issues, but it will also need to apply to all needed diagnoses that we will run into on a day-to-day basis. Especially with the realization that almost no part of the vehicle is untouched by technology. We need to begin this change now for our shops to survive in the long run.

The first step in this process is that shops need to build trust with their customers. It’s been decades that this distrust has existed. Our industry is partially to blame for it. Don’t get me wrong here, it’s not like we all intentionally brought this upon ourselves. But it is something we all need to overcome.

Using a digital service process is one of the ways to overcome this distrust. The digital service process improves customer trust through text communications, both automatic and manual, and the transparency brought about by using digital inspections.

Clear and concise communication is the foundation of trust in everything we do. All it takes is just one misunderstanding to break trust. Texting helps overcome this by allowing quick and constant communication. Being able to keep a customer up to date on what is happening during a service visit can lower the level of anxiety, which is one of the main reasons vehicle owners put off repairs and services. Texting recommendations and reminders help keep due services in mind for the customers, helping eliminate the surprise of needed repair and service.

Digital inspections will also contribute to driver trust by providing transparency that could only previously be gained by walking a customer out to the bay and vehicle, educating them on the “why” of the repairs and recommendations. Pictures, videos and clear descriptions help drivers because “seeing is believing.”

The general trust that the digital service process brings between shop and customer can now be focused on diagnostics. Used properly, you can overcome the level of skepticism the driver has about the need for diagnostics. This same process can now be used to build value in what needs to be done, possibly eliminating any diagnostic fee pushback.

Many digital inspection software packages allow a shop to create its own inspections. This option allows a shop to build diagnostic routines that can show the customer some of what needs to be done to diagnose an issue. The diagnostic inspection can build value in the skills, tools and steps required to accurately identify the cause of the issue.

The first step in this process is that shops need to build trust with their customers. It’s been decades that this distrust has existed. Our industry is partially to blame for it.

Think about it: When you ask a customer for diagnostic time, all they currently get is an estimate with a bigger bill. There is nothing else to show for the money spent on getting to that point. Eliminating this uncomfortable situation will change everything about diagnostic fees.

Building a diagnostic inspection, each step can be set from verifying the issue, reading codes, and the testing that follows. Will the customer understand the steps and readings that the technician will take? Probably not. But for the first time, they will be getting something for their money. They will also learn about the steps required after the code is read. I expect that this will increase the level of trust between the shop and the driver.

Let us use an AC performance test as an example of how this works. Inspections are made of ‘points.’ Each point can represent a step in the diagnostic process. The required step or test is done and documented via text, photo, or video. The outcome of that point determines the next steps or points that a technician will follow.

During the process, the tech will document findings and readings for each test (point). Will the customer understand what the pressure readings (or fuel trim, oscilloscope readings and other tests) indicate? No. Just like they don’t fully understand when you walk them out to the vehicle in the bay and you point out the issue for them. A level of trust is built and more than likely they will authorize the repairs.

The diagnostic inspection can also be used to document the steps required to replace a component. This can show the customer why it takes eight hours to complete a task. Additionally, a picture can show the new part in place alleviating the common question, “Did they actually do anything?” Creating understanding results in trust.

Building value and transparency into what needs to be done to determine the cause of the concern will make it easier to sell diagnosis services. The fact that your shop probably is the only shop that offers this process with digital diagnostic results, sent straight to the customer, will make it not only easier to charge for diagnosis, but you should also be able to charge more.

John ‘JB’ Burkhauser is director of education at Bolt On Technology. He has more than 35 years of experience as an auto repair industry specialist with expertise ranging from A Level and ASE Certified Master Tech, shop advisor/manager, to automotive trade school instructor, and technical writer. For more information or to get in touch, visit www.boltontechnology.com.

This article originally appeared in the Nov/Dec 2022 issue of CARS.

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I’m hearing strange discussions at the moment regarding training. Some shop owners are questioning if it’s the right undertaking for their business at the moment — we’re coming out of the pandemic but heading into greater economic uncertainty.

It’s safe to say that the merits of great training are evident. It’s always the right time for training. The world doesn’t stop changing — certainly not the automotive aftermarket — so skills need to continuously be sharpened. This, of course, applies to both the non-technical and technical aspects of learning in your repair shop.

But here’s where there is some debate: Should I send my team to face-to-face training? Do I set aside time for online training? What about in-store coaching?

The correct answer is “all the above.” Not the answer you wanted to hear? Well, each option has its merits and advantages.

You should set time aside during regular working hours for a combination of online learning, toolbox talks and, where needed, in-person training off-site.

Shops should schedule toolbox talks and online learning programs as a part of the “normal week.” Toolbox talks are an excellent opportunity during a coffee break or natural pause during the workday. Topics would include specific news topics that you want your team to know about in the industry or even how your business is doing.

The online training courses can be scheduled according to your workload but it’s important to ensure that both you and your team understand that learning is part of their job and therefore a requirement of employment.

In-person learning is great to solidify the online training and to practise the skills picked up online. I have seen the best results come from a blend of online and in-class learning — ignoring one could cause you to unwittingly lose out on the full experience.

Remember, the practice of a new skill is also applicable in the workplace. For example, if you have a technician doing electrical online courses, make sure that they get the next electrical job that comes in the door. This will go a long way towards cementing the knowledge for them and helping your shop.

Though the focus is very much on technical training, it’s vital that we don’t forget about management training — developing your own skills and your managers’. Enhancing your skills to run the business and having managers who are on top of their own training is critical to the success of the business.

Greg Aguilera is a director of IAC Canada, an organization dedicated to the management development of repair shops in Canada.

This article originally appeared in the Nov/Dec 2022 issue of CARS.

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The last issue of CARS for 2022 arrived in mailboxes just before the end of the year. If you haven’t had a chance to flip through it yet, here’s what you’re missing…

 

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It’s our Shop of the Year issue where we profile Gustafson’s Auto Clinic in Athabasca, Alberta. They took home the honour with their industry leading business practices. You can read the full profile here.

We have Greg Aguilera’s column on the value of training; John JB Burkhauser from Bolt On looks at the value of digital diagnosis; and former muffler shop owner John Enemark explains the benefits of shops keeping stock on hand to better serve customers.

And of course, we have our usual departments like Letter, News, Class Act, By The Number and more.

You can also view the full digital edition here.

The post Check out the Nov/Dec 2022 issue of CARS appeared first on Auto Service World.

Many shop owners really want to do great marketing. You know that there are many vehicles out there just waiting to be worked on and you want to let drivers know that you have technicians standing by to help them. But you struggle with how to inform customers about your business.

Maybe you went to a conference where you heard about a great marketing product or you got the inside scoop from a friend on what marketing has worked for them. You employed the same tactic but it didn’t bring the same results. You’ve thrown mud at the wall and hoped that it would stick. It didn’t.

So what will work? What do the top companies get right with their marketing? What do they have up their sleeve? The secret to great marketing isn’t a secret at all. It’s the three M’s — market, message and medium.

It sounds simple, but when you can align all three of the M’s, your marketing will show huge results.

Market is the most important. There are many definitions of this word, but for our purposes, we can say that market is the group of people that are able to take advantage of a given product.

What is your market? More specifically, who is your market? You might want to get more medium-duty diesel truck customers but instead you find that your best customers are moms with mini-vans, rushing between school, home and hockey practice. You can either lean into the ‘mom market’ and figure out what is appealing to mothers — and not blue-collar business owners — in order to adjust to your preferred market.

But for marketing to be effective, you need to have a clear understanding of who your target market is.

Second is the message. This is what we tell our potential customers about our product or service.

Once you’ve figured out who your target demographic of customers is, think about what aspect of your business matters to them as customers. Is it price? Convenience? Speed of service? Quality of work? Trustworthiness? Or is it something completely different?

Businesses often tell customers about what they, as the business, think is important rather than figuring out what is important to customers. When your messaging connects with your market, you are two-thirds of the way to great marketing.

The final piece in the marketing puzzle is the medium of communication. Where does your target demographic get their information? Is it TV, word of mouth, radio, streaming services, direct mail, magazines, social media, etc.?

In 2022, the most effective marketing tool is free: Taking advantage of your Google Business profile. By obtaining and responding to reviews, consistently uploading photos and accepting or denying customer suggested edits to your profile, you can rise in the Google rankings and be seen by more customers on both Search and Maps.

When you can align all three M’s, you’ll be on your way to great marketing and growing your business beyond your expectations.

Joe Flammer is a director of marketing for Turnkey Marketing based in Kansas City, serving as outsourced director of marketing for auto repair shops. Learn more at www.turnkeyautomarketing.com

This article originally appeared in the September/October issue of CARS

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As a shop owner, you’ve probably got a great relationship with your parts jobber. When they come by your shop, you chat about sports and hunting, and have probably shared and heard some pretty good fishing stories.

Relationships like these can span decades and, in many cases, go beyond the four walls of the shop. You may have been invited to weddings, recitals, funerals and more by your jobber, reflecting the closeness of the relationship.

Your journey to shop ownership was perhaps a lot like mine — you gradually learned your technical skills from a mentor over many years. One of the things I admire about the path you took is the formal path from apprentice to Red Seal Tech.

One key similarity between U.S. and Canadian techs-turned-shop-owner are the skills we need the day we open our shop: To become well versed in business skills. Expertise in marketing, accounting, negotiation and leadership are a few skills required to successfully run a profitable shop.

Your jobber doesn’t need to understand the relationship of car count versus the sold dollars of an average repair order, but they do understand the KPIs related to a profitable parts store.

Even after selling my shop 6 years ago, I stay connected with one of my jobbers, David Wofford. Our careers have taken different directions; he is part of a large North American program group while I run my coaching business.

Wofford was my jobber for a long time. He started selling me parts in the early 2000s at a point when we were looking to change suppliers. As we got to know one another and our sales grew, the relationship moved in the same direction. He was constantly looking for ways to help my shop grow. He shared details of the technical classes they had available.

But one key area I leaned on him for was business management training.

Our proficiency in problem-solving and repairing vehicles creates an opportunity to get to the next stage of business: Shop ownership. Unfortunately, time spent working on cars does not prepare us to be an owner. This is where your trusted partner, your jobber, comes in.

Many jobbers have a strong business acumen with the ability to access training resources versed in running a service centre. Your jobber doesn’t need to understand the relationship of car count versus the sold dollars of an average repair order, but they do understand the KPIs related to a profitable parts store.

This is where the trust factor comes in. All service centre owners, even the best shops in your province, can benefit from an ongoing business management training program. Asking your jobber what classes they have on the schedule or a referral to a training program is the start to better days in your shop, no matter the level of your sales or profitability.

Look to your jobber to see if they are part of a program that will give access to management training. Under the hood, you’re an expert. You know where to find the information to fix a complex problem. Your business is no different. You need information and training to make your business hum. Your jobber might have the key that opens the door to the next stage of your business growth.

Vic Tarasik has been an independent auto repair professional for more than four decades. He is the founder of Shop Owner Coach, a coaching and training organization He can be reached at vic@ShopOwnerCoach. com or by calling 713-826-2978.

This article originally appeared in the September/October issue of CARS

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Shop owners feel stress and pressure to perform when their business isn’t performing as well as it should, be it from a financial or customer perspective.

There could be many reasons why this is happening. Owners have a lot on their plates. But if they’re not paying enough attention to just one of the key areas outlined below, the business suffers.

Which of these challenges is holding back your shop?

Business coaching

Every athlete is surrounded by coaches. Not because they don’t have a talent, but because when someone is being coached, it’s from a clearer viewpoint, guiding the play and the decisions with reasoning and questioning.

It is the same when we talk about business. If you don’t have an experienced business coach on your side, you should get one to start seeing the benefit for yourself.

Don’t get suckered into business coaches trying to impose the way they worked on their business 20 years ago. The ways we do business have fundamentally shifted over the past few years and will continue to change moving forward.

Accounting and bookkeeping

They say a good accounting team is worth its weight in gold— and it’s true. I have put both the accountant and bookkeeper in the same bucket here because having both ensures you can focus on the strategy of building the business, rather than just running it day-to-day.

When you have this part sorted, a whole bunch of stress is taken off — not to mention time saved. Your accounts will be easy to read, you can make decisions on the business from a place of clarity instead of being buried in a sea of paperwork and lost invoices. When you have an involved accountant, you can rely on them for open and honest conversations regarding the investment strategy of your business.

Marketing

If you have a strong sense of direction and know the message you want to put out in the market, then you need a team that can bring that to life for you.

Great marketing is addictive and worth every penny of investment. They should get to know you, understand your current business and then create messaging that meets your needs.

Not all marketing strategies will have instant results. The goal is to be a customer’s first thought when service or repair is needed, and that you are easy to find with a simple Google search.

Enthusiastic staff

This one is tricky. Your staff’s enthusiasm for the job is not their responsibility — it’s yours. Your responsibility is to create and maintain an environment that helps your team perform.

When a business owner says staff are unhappy or not motivated, it’s a clear sign that there is something going on at a structural level in the organization. We need to look at all the facets of engaged employees to understand where our shortfalls might be.

Great customers

The phrase “the customer is always right” came from pioneers of the retail industry. This statement is only partially correct. It’s fair to say most customers believe that they are right.

Toxic customers destroy your morale in the business and are simply not worth it.

Look at what you offer your customer and take an approach that says what you are doing is right and fair. If they are being neither fair nor correct, then let them go.

Greg Aguilera is a director of IARN Canada, an organization dedicated to management development of independent repair shops in Canada

This article originally appeared in the September/October issue of CARS

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Image credit: Depositphotos.com

[Trigger warning: The following article may upset Bruce Springsteen fans.]

Dynamic pricing is all around us.

If you book a flight, ticket prices can vary by day, season or proximity to travel date, among other factors. If you load up your Amazon cart and leave it sitting around, you can watch the prices of your selected items change every day — sometimes by just a few cents, sometimes by tens of dollars.

And if you tried buying tickets to a Bruce Springsteen concert recently, you may have had to fork out up to $5,000 for the privilege of watching “The Boss” in action — all thanks to event retailer Ticketmaster’s demand-driven strategy. The resultant outrage highlighted the double-edged sword that is dynamic pricing. Think Uber and surge pricing: It is a love-hate relationship, right? Sporting events are famous for dynamic pricing with ticket costs changing based on the opponent and day of the week.

So dynamic pricing is not exactly new. But the aftermarket has remained largely insulated from this approach. That is slowly changing. U.S. parts retailers — both traditional competitors and e-commerce pure players — have started to introduce real-time pricing across their platforms. The current inflationary environment and the recent supply chain issues are speeding up the process.

Even automakers and parts suppliers are beginning to roll out automated, multi-variate pricing strategies in response to market pressures.

Dynamic pricing: The good

The benefits of dynamic pricing are clear. At a fundamental level, it allows a company to modulate its product pricing in real-time based on evolving business conditions.

Other pricing approaches are one-dimensional. With a cost-plus strategy (still the default mode for a broad swath of the aftersales business), companies are simply aiming to protect a fixed margin target. With a competition-based or value-based approach, businesses are relying on market positioning or customer preferences.

Dynamic pricing puts all the above into an algorithmic pot, adds other inputs such as seasonality, inventory levels and more, and serves up an optimized price. Price actions do not follow a pre-determined schedule. Rather, changes are triggered by the magnitude and frequency of the inputs.

Let’s say, if freight costs go up, prices are adjusted according to profit targets. But, if the product faces stiff competition, the adjustment factors in both margin and market position. If the product is also highly valued by customers, the output now trades off between the relative influence of the three inputs — margin, market, and customer. You get the picture; the combination of influences is endless.

Dynamic pricing cannot be executed manually because it would take too many people. Companies rely on sophisticated software that work on rules-based machine learning and artificial intelligence to monitor and action price changes. The software, in turn, acts on the basis of high-frequency, automated data streams to power these changes.

How can dynamic pricing work for the aftermarket?

For the do-it-yourself (DIY) market, dynamic pricing is already in action. Most aftermarket retailers have implemented pricing tools, particularly for their e-commerce platforms.

But, unlike the U.S., Canada is still largely a do-it-for-me (DIFM) market. Can a vacillating pricing strategy work in this business-to-business (B2B) dominant environment? The answer is yes — if you have a clear view of its benefits.

For a supplier, it provides a mechanism to adjust prices according to customer urgency, lead times, and manufacturing capacity for a particular product. It allows sales teams to create automated selling processes based on previous wins and losses as well as current and future market conditions.

The advantages are even more apparent for distributors and retailers selling into automotive aftermarket maintenance and repair shops.

Currently, aftermarket B2B transactions are increasingly happening through digital platforms — a prerequisite for a dynamic pricing strategy since e-commerce enables a feedback loop of data and insights. For instance, what are daily the purchasing patterns of a technician? What products are being purchased by the business? A dynamic strategy allows a near, real-time understanding of such behaviour, enabling the distributor to understand cross-selling and bundled pricing opportunities for that buyer.

Dynamic pricing can also reward both buyer and seller.

Let’s say a particular shop is undergoing a sudden spike in repair traffic. Under static discounting frameworks, installers get price breaks on a pre-determined volume, driven by seasonality and prior purchase behaviour. But within a self-regulating environment, these rebates could be applied based on ongoing purchasing patterns, thereby creating greater loyalty and purchase satisfaction.

For the distributor, the benefit comes from any increase in order volume and revenue spurred by such spot discounting.

Is the aftermarket ready?

Dynamic pricing is a delicate dance. Get it wrong and you risk alienating customers for real or perceived “price-gouging,” as in the Springsteen-Ticketmaster case. Even worse, you risk squandering revenue from potentially “pricing down” a product.

To make dynamic pricing work, businesses need a steady stream of accurate and diverse data. The trouble with the aftermarket is there is precious little of it. And to be very honest, there seems to be little appetite to share and use data in the industry. The U.S. is bad and Canada is even worse.

For instance, granular, industry sales volumes are a given in most industries — even in certain B2B-heavy sectors such as the medical industry. No such luck in the aftermarket. Most competitors rely heavily on internal data and simply extrapolate those numbers to generate industry guesstimates. Many think that price crawlers — the use of automated data extraction to match market pricing — alone can power dynamic pricing.

If the aftermarket wants to take dynamic pricing seriously, it must up its data game. It must create internal processes to create, consume, and digest data. The industry must also create mechanisms to share data more effectively.

Without the right data, dynamic pricing might as well be … dancing in the dark.

Kumar Saha is the Toronto-based vice president (U.S.)/managing director (Canada) of global automotive intelligence firm Eucon. He has been advising North American automotive industry for over a decade and is a frequent conference speaker and media commentator.

This article originally appeared in the September/October issue of Jobber News

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Image credit: Depositphotos.com

There are many benefits for fleets to outsourcing maintenance, whether local or with a far-reaching franchise.

This is especially true when sticking with one provider. But automotive repair and service shops stand to gain just as much through a solid partnership with fleets.

To better understand the mutual benefits of a partnership and how to increase revenue through supporting fleet customers, it’s important to understand why there’s an outsourcing need on the fleet side.

While some fleets perform 100 percent of their services in-house, many either divide the labour or outsource completely. Much of this decision is based on capacity, labour availability and capability, and budget. Because of the increased difficulty in hiring automotive technicians due to labour shortages, more fleets are seeing the need to outsource maintenance and repairs.

Additionally, increased lead times on replacement parts due to supply chain constraints is impacting in-house service times. Those same shortages are also affecting lead times for vehicle procurement, meaning fleets are having to keep older assets on the road longer, and those assets have to be safe.

Partnering with fleets to help extend their vehicles’ lifespans and keep their assets in safe operating conditions doesn’t just help them, it means guaranteed, steady work for your shop.

Guidance and support

When fleet managers shop around for a service provider with which to partner, there are several deciding factors they take into account: Location, pricing, availability, amenities (think mobile mechanics) and services offered, for example. Fleets that use fleet management software (FMS) may request that you be willing to use their work order app to streamline maintenance and repair processes and speed up service times with auto-approvals.

When starting a partnership with a new fleet customer, set expectations so that everyone is on the same page — and be sure to ask questions. You want to find out early if there is anything they expect of you that is beyond your scope of work — or simply an unreasonable ask — and nip it in the bud.

A good way to strengthen your partnership with a fleet customer is by issue resolution. As time goes on, you’ll get a feel for the problem vehicles in the fleet and be able to recommend an issue resolution based on what you find — maybe a certain brand part can’t hold up to the daily grind or a secondary, unaddressed issue is the actual cause. You can also ask for service histories for the entire fleet or for specific vehicles to get a better idea of what might be causing certain recurring problems.

Whether through service histories or routine visits, over time you’ll get to know the fleet vehicles and be in the position of service expert for the fleet. As the expert, fleet managers will rely on your recommendations for any additional needed services or preventive maintenance (PM) schedule changes, so open and honest communication is mutually beneficial.

Optimizing maintenance schedules

With the right proactive maintenance plan in place for fleets, your largest source of fleet service should be run-of-the-mill PM. By taking on a fleet’s maintenance program, you can help strengthen its PM schedules to optimize vehicle lifespan and keep a steady stream of business coming into your bays — and predictable business at that.

Using a fleet customer’s maintenance history, you can work with fleet managers to set up a PM schedule that improves their operation and is easy to schedule and carry out on your end. Working closely with the fleet manager (or whomever your point of contact with the fleet may be), you can streamline workflows and speed up repair services by:

• Discussing types of recommended services outside of PM that can be auto-approved
• Discussing dollar amounts for recommended services that can be auto-approved
• Discussing who on the fleet side can approve additional services outside of original work orders
• Discussing who on the shop side can sign off on recommended services not included on original work orders
• Discussing best times for both parties to handle standard PM for faster service and reduced downtime

Having these discussions with your fleet customers can set you up for success when it comes to scheduling service. Based on PM intervals, you’ll know well ahead of time which vehicles need to come in and within what timeframe and can schedule accordingly. This can reduce stress in the shop and help strengthen the partnership with your fleet customers.

Partnership value

When you partner with a fleet, you’re essentially “winning” long-term business. It’s equally important to prove to fleet customers that partnering with your shop is as beneficial for them as it is for you. We know that tightened PM and faster service benefit fleets through decreased downtime and lengthened asset lifespans, but proving something you know to be true instinctively with data to back it up makes all the difference.

To prove the value of your partnership to fleets, put a process in place to track these three key performance indicators (KPIs): service time, response time to repair requests, and PM compliance rate.

While there are other metrics you can track, the above KPIs are proof positive of the value in a fleet customer partnering with your shop (provided the numbers look good). Tracking these metrics may sound like a lot of work, but if your fleet customer is using FMS, most of this data is already being recorded in the background. Outsourced maintenance automation through FMS allows fleets to quickly and easily communicate with shops in real-time for work order approvals, rejections, or last-minute additions, consolidate billing, see vehicle status alerts in real-time, see mechanic clock-in/out data for service jobs, and record detailed invoices down to the line item. Regardless of technology, however, partnering with fleet customers can be a lucrative move for shops of any size.

Rachael Plant is a content marketing specialist for Fleetio, a fleet management software company that helps organizations track, analyze and improve their fleet operations. For more info, visit fleetio.com.

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The automotive industry is similar the world over when it comes to the ‘rite of passage’ that we as professionals go through.

My career journey started in the U.K., sweeping floors, cleaning tools and making tea. Eventually, I got to help repair cars. I still remember that first job like it was yesterday: It was a rear brake line over a rear axle on a 1977 Mazda 323.

The optimist in me says that the industry has come a long way. My question is: How far?

Sure, we don’t ‘ride’ apprentices like we used to. But the ‘time served’ attitude has stuck. And in some cases, not for the right reasons.

Many have found themselves complaining that the younger generation is different — even going as far as calling them lazy. If we are honest with ourselves, we probably heard that when we started, too. The truth is, we need to motivate our teams in different ways now. Gone are the days of ‘do as I say.’ We need to paint a picture of the future and invite our young teams along and give them a sense of belonging. We need to show them the reasons why we are asking for things to get done.

I recently sat down with my former boss who I apprenticed under and asked him why he made me do the menial tasks repeatedly. His answer took me a little by surprise.

When we are focused on the bottom line and not our teams then we will always lose the fight. To change the direction of the industry, it’s up to us to evolve and develop to bring the next generation on board in the right way.

He told me that it wasn’t the task I needed to learn, but the discipline to carry out a job that was assigned. He explained that the motor vehicle should be considered a dangerous machine that, if not repaired properly, could kill someone. Following instructions is vital to correct repairs.

That conversation taught me a lot, though I wish he had told me that during those early days.

There are few of us in the industry that have taken people development courses or investigated people motivation as a subject area. Mentorship is going to be critical for the future health of our industry. And while we complained about our mentors while apprentices, we find ourselves doing that very same by complaining about our young teams.

There is a well-known phrase in people development, credited to Virgin Group founder Richard Branson: Train people well enough so they can leave, treat them well enough so they don’t want to.

When we are focused on the bottom line and not our teams then we will always lose the fight. To change the direction of the industry, it’s up to us to evolve and develop to bring the next generation on board in the right way.

If you have a team, seek out training for yourself and ensure that this includes mindset and people coaching skills training. This way we can build better teams for the future and maybe take one small step forward from where we are today.

Greg Aguilera is a director of IARN Canada, an organization dedicated to management development of independent repair shops in Canada

This article originally appeared in the July/August 2022 issue of CARS magazine

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Listening to various aftermarket leaders describe customer behaviours they’re seeing these days can easily make one reminiscent of the movie Willy Wonka & The Chocolate Factory. It’s of course based on the classic book Charlie and the Chocolate Factory.

In particular, one character jumps to mind: Veruca Salt. She’s a spoiled daughter who wants everything. And she usually gets it, thanks to her enabling father. In the movie, she sings about how she wants everything, particularly a goose that lays golden eggs. She meets her demise when she steps on a scale that grades freshly laid eggs. She’s deemed a bad egg by the analyzer and is sent through a trap door to the incinerator.

While the book came out in the 1960s and the movie a decade later (no, the remake didn’t happen as far as I’m concerned), Salt is very much seen in perhaps the vast majority of consumers: They see something they want — and they want it now. It can be anything from a light bulb to dinner — consumers have been accustomed to pulling out their smartphone, opening an app, tapping on what they want and expecting it shortly thereafter.

And the definition of “shortly” is pretty clear — if it’s a product, it should arrive the next day. Call it the Amazon Prime effect.

The aftermarket doesn’t and hasn’t operated that way. Your shop customers do indeed expect you to deliver an order immediately once it’s placed. But retail customers have perhaps been more flexible. Until now, that is.

Experts recently discussed the change in consumer habits during the pandemic. So long as Amazon remains the elephant in the room — or in the channel — traditional aftermarket outlets will be hard-pressed to satisfy consumer demands for quick shipping. Otherwise, they’ll turn to the online giants to get what they need.

So what can you do? Brent Berman, vice president of repair products at First Brands Group, offered some advice: It will be key to leverage those in-person customers to your online platform and have them think of you first when shopping online instead of the other digital platforms.

“As far as winning [in the aftermarket], I think the traditional guys do have those handshake relationships. And it’s going to be up to them to parlay that into kind of a more e-commerce space,” he said.

Jobbers will need to rely on those tried-and-true customer service techniques more than ever: Have a smile on your face, offer great service, be reliable, offer the expert advice they need and be able to deliver — both service and products.

Then it will be up to you to deliver on their expectations: Getting them what they want quickly. After all, the customer has changed — they need to see that you have changed along with them.

The post Editorial: They want it now appeared first on Auto Service World.

Here are three predictions from 2010: One, from IBM, that all cars in the U.S. will be some form of hybrid by 2020. Two, from various automakers, small cars will rule. SUVs and trucks will be dead. Three, electric vehicles will be 6 per cent of the U.S. market by 2016, said Bloomberg.

All wrong. By miles.

In 2021, US and Canadian electric vehicle (both hybrids and battery-only) share of total new car registrations stood at 4 per cent and 5 per cent respectively. Share of total parc was lower than 2 per cent.

Similarly, the fate of small cars has run in the opposite direction. SUVs / truck sales have skyrocketed in the last few years — to the extent that manufacturers such as Ford have largely abandoned their car strategy.

We are in the midst of a new electrification — and expert prediction — frenzy. As I write this, electric vehicle uptake continues to climb at the rate of 50 per cent-60 per cent every quarter, countering the free fall in overall car sales. Shares of EV registrations in cities such as Vancouver and Montreal hit mid to high double digits in the second quarter. Indeed, current data indicates that EVs have finally hit escape velocity. When analysts say that this time around the electric transition will happen faster than predicted, I tend to agree — despite the spotty forecasts of the past.

The aftermarket is getting ready for this shift. Auto distribution leader NAPA recently announced that it will be rolling out its NexDrive banner, aimed at servicing hybrids and electric vehicles, across many of its Canadian locations. Another Canadian distribution giant Uni-Select is partnering with EvoCharge to resell EV charging equipment through their parts network.

These pro-active measures are welcome. Amidst all the push-and-pull around the Right to Repair Act, these strategies show that the aftermarket is well prepared for advanced technologies and deserves a seat at the table of progress.

But it is also important to separate the hype from reality. Currently, discussions around the impact of electrification on the aftermarket vacillate between wild optimism and certified doom. There is the opportunity faction — ones who hang their hat on explosive volume growth, robust used car market for alternative vehicles, higher cost of repairing EVs, and so on. On the other end are the naysayers, predicting an 80 per cent reduction in powertrain parts, negligible maintenance spend, and OEM technical dominance.

However, past experience — as seen above — and real data point to more nuanced outcomes.

The aftermarket opportunity for EVs also assumes high demand for used electrics. But the case for pre-owned EVs, as things stand now, is not great.

Let’s look at the opportunities. In the last 10 years (2011-2021), Canada added about 600,000 electrified vehicles (including hybrids), according to Statistics Canada. About 80 per cent of these vehicles were registered in the last five years — which means they are still under warranty and will need little maintenance for the next five years. There are about 100,000 odd vehicles that could potentially require repair, maintenance, and refurbishment — an opportunity for sure but a small one.

The aftermarket opportunity for EVs also assumes high demand for used electrics. But the case for pre-owned EVs, as things stand now, is not great. Fully refurbished models come at a price premium, while those with waning battery power add both inconvenience and costs to users. It will take a while for used electrics to become attractive to buyers. Without that volume, repair dollars will remain elusive.

Then there is the question of how many, how quick. True, EVs are growing faster than expected, but do not hold your breath for a Norway-esque transformation (electrics accounted for 65 per cent of sales there in 2021) in North America. EVs are still too expensive, government incentives still too spotty, and our love for gasolines still too strong for a European reckoning.

I think we would be lucky to hit 30-35 per cent EV sales penetration by 2030 — amounting to less than 10 per cent car parc share. And if gas prices decline 20 per cent-30 per cent (a highly likely scenario) in the next couple of years, we could see a re-run of the ‘small car’ bet (a less likely scenario) from the past decade. Which means that true volume opportunity will only start emerging at the start of the next one.

If there’s little short-term gain, then the pain cannot be that bad. The gasoline-diesel market will shrink for sure but not enough to have any meaningful impact in the next seven to eight years. The aftermarket should be more worried about declining part failures than they should be about lost sales from disappearing ICE vehicles.

Post-recession cars have seen huge gains in initial quality and longevity. The latter in fact is a strong predictor of aftermarket opportunity. Older cars in circulation directly translate to more part sales and repair needs. Increasing complexity also means higher revenue per job. Aftermarket competitors would do better to focus on how they can capitalize on these opportunities rather than shedding too much strategic and operational sweat on the electric threat.

Don’t get me wrong: Electrification is coming. But it is not dark yet.

Kumar Saha is the Toronto-based vice president (U.S.)/managing director (Canada) of global automotive intelligence firm Eucon. He has been advising North American automotive industry for over a decade and is a frequent conference speaker and media commentator.

*Editor’s note: This piece has been updated since it was published in the July/August issue of Jobber News to include the latest data.

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With the long-term future of the aftermarket industry under threat, new offerings like mobile service are here to stay.

Over the course of the pandemic, while the automotive industry carried forward as an essential service, the world around us changed dramatically. E-commerce sales grew by more than 40 per cent in 2021. One study found that about one-quarter of respondents noted convenience as the deciding factor in where they choose to give their business.

The change in consumer demand goes beyond convenience. We’re seeing it in the adoption of electric vehicles. It’s impacting the price of real estate. The way consumers shop, what they buy and how they live is putting pressure on the aftermarket industry.

To channel H.G. Wells: We must “adapt or perish.”

After years of research, Fountain Tire launched its TireMobile offering in the Lower Mainland of B.C. in 2021. Other major players will follow suit. There are already a variety of other, smaller operators across the country. This is more than a growing trend — it’s our opportunity to adapt.

The rise of mobile has gained recent media attention, too. In the January/February issue of CARS, Bruce Eccles credited mobile tire service as leading a race to the bottom, wrought with safety concerns, financial risks and the lost revenue of unperformed maintenance. As mobile offerings disrupt the industry, the hesitation from shop owners is understandable. Change is hard.

But the truth is, we need to innovate to advance our industry.

In a consumer landscape where convenience is king, the local auto shop as we know it is on a fast-track to extinction. Lease rates are rising exponentially — we’re seeing renewal rates in the Lower Mainland of up 170 per cent in some cases. For many markets, escalating real estate values and the trickle-down to lease rates and property taxes are the largest threat to aftermarket sustainability.

That is, if you can find real estate. Aftermarket shops are being pushed to the fringe as major centres face redevelopment and landlords have ample choice for tenants. Local, independent service facilities that once flourished on neighbourhood corners have been replaced with condos, bakeries and bike shops. The occasional car dealership left in the community is poised to absorb our lost business.

The further we are from our city centres, the less convenience we can offer our customers. Shuttle and pick-up/ drop-off options only go so far. Mobile service is an additional tool in the proverbial toolbox that offers another option to those who not only want at-home service but are also coming to expect it.

That consumer is also proving to be unique. With the redevelopment of our inner-city neighbourhoods comes a different kind of resident — one that is lifestyle focused. These customers have fewer vehicles, but drive newer ones, most of which are still under warranty. We’ve seen TireMobile attract a new segment of the market rather than drawing customers who require extensive repair. It’s allowing us to have a presence in new communities and look after new customers who would otherwise be out of reach.

The connection between new markets and established stores makes our model successful and different from others who have come before us.

In his article, Eccles speculates, “at the top of the list of problems [with mobile service] is losing the opportunity to service the vehicle properly.” Fountain Tire’s TireMobile technicians perform a digital vehicle inspection and provide a report to customers — complete with photos and videos — so the customer can see exactly what is happening with their vehicle. The report is shared with the closest Fountain Tire location and the servicing store takes care of educating the customer.

Admittedly, we cannot perform the same depth of inspection as we can in-store, but we firmly believe taking the time to educate a customer allows them to make an informed decision about next steps. The biggest driver of underperformed maintenance is a lack of consumer education on why a repair is required. We, the aftermarket, should be channelling our focus to educating our associates so they can, in turn, educate our customers.

As an early adopter in this space, Fountain Tire had the opportunity to set the bar for mobile tire service. We’ve set it high. For those exploring mobile, I offer the following:

• Consider mobile as a part of a greater automotive service ecosystem. Mobile tire services work well when backed by established processes, stringent safety protocols, established HR programs and brick-and-mortar stores offering mechanical service.
• Employ certified technicians. Fountain Tire’s technicians are TIA-certified, whether in-store or working with our TireMobile fleet. This high standard ensures the safety of our associates and highest level of care for our customers’ vehicles.
• Adhere to stringent safety protocols and set customer expectations accordingly. Safety standards should not be compromised for unusual locations or inclement weather. If a job site is not safe, do not perform the service.
• Provide a thorough inspection. Mobile tire service provides a great opportunity to help the customer understand the overall health of their vehicle. Even without a hoist, many mechanical issues can be flagged and safety concerns addressed.
• Work with your insurance provider to manage liability. Fountain Tire has been providing on-the-farm tire service since 1956. We service vehicles in fleet yards, on construction sites and at mining facilities. The concept of work outside the shop is not new to our company, and it is not new to our insurance providers.

In the way we band together to promote careers in the automotive industry, don’t we owe it to one other to adapt to changing market forces and innovate in a way that benefits us all? We must look at mobile tire services not as a race to the bottom, but as a way to build a new segment of loyal customers and move our industry forward — with the same rigour, quality of work and safety as in our shops.

Nason Higinbotham is general manager, B.C. & Yukon Stores at Fountain Tire.

This article originally appeared in the June issue of CARS magazine.

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When it comes to e-commerce, the consumer always grabs the spotlight. Amazon, Walmart and everyone in between are spending billions of dollars every year to win over the individual buyer — people like you and me.

The aftermarket equivalent of the mainstream consumer would be the DIYer. Ever since the first auto parts e-commerce growth spurt during the Great Recession, big North American auto retailers and distributors — NAPA, AutoZone, Advance Auto Parts — have pumped money into their business-to-consumer (B2C) sites and technology to woo the garage tinkerer.

But a strategic shift has been brewing of late.

Aftermarket stakeholders are increasingly aiming their technology budgets at the business-to-business (B2B) set — jobbers, counterpeople, fleet managers and technicians. That is where they see the best revenue results and biggest growth potential.

In a recent investor call, Advance Auto Parts CEO Tom Greco noted that “improvements made in our MyAdvance digital platform led to the highest online B2B penetration rate ever.”

Similarly, AutoZone made tremendous — high double-digit — gains in commercial revenue in 2021 and is pouring in top dollars to improve both the DIY and professional purchase experience.

The trend is consistent with observations from other sectors. A recent study jointly published by the pymnts.com web platform and American Express reported that more than half of U.S. companies now buy through self-serve B2B websites. The pandemic fast-tracked the trend, compelling more and more businesses to embrace digital.

The result? In 2020, B2B e-commerce increased 200 per cent faster than B2C sales, according to the report.

Some of this growth is organic, even in part sales. As professionals get more connected in their personal lives, they bring over some of their habits to their workplace. Numerous surveys have already shown that jobbers and technicians have been steadily ditching the phone, which was the de facto parts ordering process even a few years ago.

Changing demographics are also accelerating the trend. Digital native Millennials and Gen Yers at a part store are far more likely to use digital tools to conduct business than their Gen X or Boomer counterparts.

But a huge part of B2B wins will be earned. Auto repair and service shops and part stores are busy places. As in other industries, B2B technology spending in the aftermarket will target professional pain points, with the goal of adding convenience and increasing productivity.

Here are the four key areas for B2B technology development aimed at jobbers and technicians:

Customer Journey

B2B websites? Amazon they are not. By and large, they are clunky, slow and emphatically unattractive. Aftermarket platforms are no exception. They get the job done, and there have been significant improvements over the years. But using them efficiently still requires a pretty steep learning curve.

Going forward, these platforms will aim to get closer to an Amazon-like experience — making it easy and frictionless enough for the first-day-on-the-job counterperson. That could mean improvements such as interactive content, smart product recommendations, personalization and mobile buying.

Now, large franchises and fleets are rapidly transitioning to a more data-driven approach. But smaller organizations continue to conduct their business the old school way. The status quo can be attributed to inertia. But often the local jobber is too cash-or resource-strapped to invest in data and analytics.

Advanced Analytics

The aftermarket — particularly the lower half of the value chain — has largely run on “gut” strategy for decades. Now, large franchises and fleets are rapidly transitioning to a more data-driven approach. But smaller organizations continue to conduct their business the old school way. The status quo can be attributed to inertia. But often the local jobber is too cash-or resource-strapped to invest in data and analytics.

Future B2B platforms will try to fill this gap. They will provide more insights to customers through free or low-cost subscription-based integrated dashboards: How much they are buying, how far they are from their next incentive level, how well they are addressing they are local demand? For fleet buyers, such information would revolve around their assets. For instance, U.S. chain Discount Tire recently launched a connected vehicle platform for their fleet customers that will provide them insights into various operational metrics of their assets.

Business Management

Each aftermarket service and parts location is a micro-office with its own operational dynamics. Store personnel spend a lot of time managing financial documents, invoices and marketing materials. These activities take away time from the real business of selling parts, or in the case of fleets, the effective deployment and use of vehicles.

Of late, there has been tremendous growth in software (e.g., Epicor Eagle, Autoleap) that specifically aim to digitize business process and documentation at the aftermarket store or shop level. In the future, we will see closer integration of this software with the parts ordering interfaces of national parts distributors and retailers, making these solutions more impactful and user-friendly for the aftermarket professional.

Dynamic Pricing

From airline tickets to Amazon trinkets, most online retail purchases these days are subject to demand and market-based inputs. Prices are constantly optimized based on customer interest, competitive environment, availability and a host of other factors. That TV you are eyeing can often swing by $100 within a few hours.

B2B platforms will not adopt that level of volatility but aftermarket distributors and retailers will react to market conditions more frequently — and dynamically — in the future through increased automation of price inputs in their ordering systems. Buyers will also see more effective integration of incentives and rebates into the digital process.

Kumar Saha is the Toronto-based managing director of the Canadian operations of global aftermarket intelligence firm Eucon. He has been advising North American automotive industry for over a decade and is a frequent conference speaker and media commentator.

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Electric vehicles aren’t going away. In fact, they’re gaining in popularity as conventional vehicle manufacturers start to offer electric versions of traditional internal combustion engine (ICE) vehicles.

These familiar-looking vehicles help to make the transition from ICE to electric easier for consumers. People generally don’t like change. Something that looks familiar with new technology helps to smooth the transition.

Everyone recognizes a Tesla as an electric car — but not an F-150 or a Hummer. These and others are familiar and will be available as battery electric vehicles (BEV). They will be more accepted because of their familiar names and styles.

This can only help to speed the acceptance of electric vehicles. And as more people purchase these BEVs, there will also be more customers looking for a shop to service them.

Will your shop be ready when customers ask if you service EVs?

There is a way to get ahead of the curve: Start servicing hybrid vehicles now. Much of the technology used on BEVs is the same as is used on hybrids. Being familiar with the safety requirements of hybrid service will help make the transition to fully electric vehicles easier. Plus, you will already have some of the equipment necessary to service EVs when the time comes.

Not all service requirements on hybrids or EVs are related to high voltage (HV) components. These high-tech vehicles still have suspension and brake components just like conventional ICE vehicles. One aftermarket supplier recently announced it has expanded its coverage of steering and suspension components for these vehicles. Plus, conventional low-voltage components like lighting, comfort and infotainment equipment will need to be serviced just like on conventional vehicles.

Will your shop be ready when customers ask if you service EVs?

Hybrids still have an ICE that needs all the same servicing a conventional vehicle does. By adding hybrid vehicle service to your shop’s capabilities, you are preparing for future needs as well as expanding your current customer base.

Then there is also the option of spinning off a portion of your shop as a hybrid electric vehicle specialist. Being a specialist opens the door to full EV services in the future. Even if you don’t specialize in hybrids, having signage that says you service them gets the message out there. Hybrids have been around for over 20 years. There are plenty of them out there. Why not tap into that potential?

When hybrids were first introduced, a lot of people said they’re a fad and won’t last. Well, they’re not only still around but gaining popularity. More manufacturers are offering hybrid versions of their popular models.

Even as EVs gain market share, there will still be hybrids on the roads that need to be serviced. Just as the ICE will be around for many years to come, so too will hybrids.

Take refrigerant as an example: R12 was banned 25 years ago and we still see the occasional vehicle that’s still charged with R12 and working. So it’s not unreasonable we will see ICE-powered vehicles for years after manufacturers stop producing them.

The numbers will turn. At some point, we will have more EVs on the road than ICE vehicles. Whether that means hybrids or BEVs, we will be servicing more vehicles with an electric component.

Get ahead of the curve now and be ready when that time comes. It is always better to be proactive than reactive.

Allan Haberman is a technical trainer and owner of ACA Training Systems in Winnipeg, MB.

This story originally appeared in the February issue of CARS magazine

Image credit: Depositphotos.com

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More and more automotive service and repair shops offering mobile tire service. And more and more, they’re only hurting themselves and our industry.

Late last year, Fountain Tire was the latest dancer to the party as it announced it would be bringing its mobile tire sales and installation services to customers’ doorsteps. For now, it’s only available to those in British Columbia’s Lower Mainland.

Nevertheless, the concept is not new and none of its many flaws have been ironed out over the many years it has been around. In fact, the concept has failed. GoTire promoted its mobile tire service on Dragons Den’s seventh season. Despite getting an investment of nearly $219,000 from Kevin O’Leary and Bruce Croxon, the company looks like it has gone under. Its website is no longer available.

Apart from the extraordinarily tight financial gain, at the top of the list of problems is losing the opportunity to service the vehicle properly. With manufacturer extended service intervals dramatically lengthened, this was already a bubbling issue. It’s a well-known fact in the industry that underperformed maintenance represents billions of missing dollars.

Take this, written in CARS’s sister publication Jobber News almost 10 years ago: “The ‘untapped market’ of unperformed and underperformed automotive maintenance represents a significant 27 per cent of the total aftermarket potential — but the larger concern is vehicle safety, according to the Automotive Aftermarket Suppliers Association (AASA).”

The piece went on to highlight that customers avoiding or delaying maintaining their vehicles pose potential safety risks to not only themselves, but their families and everyone travelling on our roads and highways

“AASA strongly supports addressing the issue of unperformed/underperformed maintenance through continued consumer education and reasonable, safety-friendly and cost-effective vehicle inspection programs throughout the country,” said Bill Long, then-president and chief operating officer of the association.

Chief executive officer of Fountain Tire Brent Hesje, in an April 2018 Jobber News profile upon his election as chairman of the Automotive Aftermarket Industries Association of Canada, also referenced underperformed maintenance. He deemed this as unrealized financial potential for the aftermarket.

“If that was all fulfilled in Canada, there is a multi-billion-dollar prize out there,” he said, citing AIA Canada estimates of the “prize” being as much as $15 billion at the time.

“I didn’t really have an understanding of the magnitude of the underperformed maintenance that is out in the marketplace … We have this bigger prize to go after,” he later observed in the interview.

And, yes, it is amusing that the leader of Fountain Tire made these comments, and here we are just a few years later as the company rolls out a service that will only make matters worse.

How so? A semi-annual tire switch over in a controlled environment like a reputable repair shop allows service providers to service and inspect a vehicle properly with licensed and trained technicians.

That’s not happening in a driveway.

A semi-annual tire switch over in a controlled environment like a reputable repair shop allows service providers to service and inspect a vehicle properly with licensed and trained technicians.

And when a vehicle is in a bay, this not only increases sales in bays but provides the consumer with a safe reliable vehicle.

There are also a number of concerns that only hurt shop owners and, ultimately, the aftermarket industry as a whole:

• Liability: There are liability concerns when working on private property, not to mention the cost of having the proper insurance to do such work.
• Comebacks: How much will this cost in comebacks to your shop? Or an on-site call back at the customer’s home? You can bet good money that there will be more complaints about vibrations, broken wheel studs or wheel locks.
• Investment costs: How affordable is it to invest in new tools and the training required to reset tire monitor systems and diagnostics when needed? What about your truck to perform the work? The return on investment will likely be a long one as costs to the customer can’t be too far out of line with what they would receive if they came into the shop.
• Qualified staff: Who will be doing this work? Will they be properly trained? Are you going to send qualified professionals into the field, rather than have them in the shop? We already have enough of a labour challenge — will this exacerbate it? And will be these pros be willing to work in undesirable weather conditions? Remember, these jobs take place in spring and fall.
• Wheel balancer: It’s highly questionable if high-end wheel balancers designed for stationary installation will overcome day-to-day road vibrations without calibration issues.
• Extra costs: Fuel costs are at all-time highs. How far are you willing to travel for your customers? Are you getting those costs back in your fees? Unlikely. What about costs associated with cellular data? You will need mobile internet information to retrieve correct wheel torque and tire pressure specifications, on top of an internet-based POS system. Let’s not forget maintenance costs to repair your service truck.

At the end of the day, mobile tire service will become a roadside assistance business with even lower margins for profit. It is catering to a specific consumer who bases everything on cost, not value. We shouldn’t be racing to the bottom as an industry.

The argument for mobile tire service is that it provides convenience to the customer. Putting water in a plastic bottle was an idea based on convenience. Now it is an environmental disaster.

If such a service is about convenience for the consumer, then offer pickup and delivery, a courtesy shuttle or courtesy vehicles.

Our job as shop owners and technicians is to ensure every vehicle we put back on the roads is safe and reliable. A mobile tire service not only doesn’t do that, but it also increases the risk that these vehicles are in worse shape.

Bruce Eccles is the semi-retired owner of Eccles Auto Service in Dundas, Ont.

This story originally appeared in the February issue of CARS magazine

Image credit: Depositphotos.com

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The world of car scanners keeps changing as the technologies used in cars get more advanced with the addition of new electrical components and computerized functions.

There’s a need to examine how the use of vehicle scan tools has evolved and the direction that the industry is heading. So we’ll take a look at the functionality and application of car scanners below.

Furthermore, with a change in the industry comes certain challenges that have to be dealt with. We’ll also take a look at those and how the industry can adapt to them.

Functionality and application

How does an expert choose which car scanner to equip their workshop with? Will it be the generic OBD-II (OBD2) type, the aftermarket multi-line scan type or one from the original equipment manufacturer (OEM)?

Your decision will be based on the type and range of repair and maintenance services you offer — including the product’s affordability. Your choice needs to be matched with the functionalities the product can provide. It would be a waste of money to buy an expensive tool that offers a wide range of functions you won’t ever need.

It’s advisable to go for the ones that are frequently updated and are compatible with the type (brand) of cars you service. Of course, OEM scanners give the most advantages, especially in areas such as regular updates and re-flashing modules.

There’s a pressing need for sophisticated scan tools that can help in rendering most repair and maintenance services, especially collision repairs. Auto technicians can integrate more diagnostic capabilities by equipping their workshops with the latest scanners. Techs can also decide to purchase more than one product — one making up for the inadequacies of the other.

The importance of OBD2 ports in electric cars has decreased significantly because OBD2 diagnostic data isn’t necessary for most repair and maintenance work done on such vehicles.

Car scanners in the future

What should we expect in the future from car scanners? There are plans in the works for OBD3 (OBD-III) to be introduced. The system will make use of telemetry — the collection of data through sensors — to incorporate more functionality such as two-way communications during remote diagnosis. OBD2 scanners will become less useful by the time this system is widely implemented.

There’s also the embedded diagnostic method which facilitates smooth communication with electronic control unit (ECU) networks. The system enables guided/remote diagnostics and predictive/preventive maintenance.

Embedded vehicle diagnostics can be of benefit to OEMs in the sense that there’ll be a decrease in no-trouble-found (NTF) backed warranty claims as well as expenses related to car recalls. It will be an advantage to mechanics who are looking to reduce service expenses and duration, boost fix-first-visit ratios, enhance efficiency, increase productivity and promote customer satisfaction.

The importance of OBD2 ports in electric cars has decreased significantly because OBD2 diagnostic data isn’t necessary for most repair and maintenance work done on such vehicles. Even some electric car makers have permanently removed OBD ports from their products.

OBD ports may only become useful in the world of EVs in instances like a regulatory body conducting an emissions standards test or an assessment of a client by an insurance company.

Aftermarket scan tool manufacturers are seeking to provide full-range remote diagnostic services. Many car makers are offering subscription-based versions of their scanners with J2534 pass-thru device compatibility.

Challenges and how to tackle them

The advancement of modern car systems to become more computerized means that auto technicians will find them more complex to handle in terms of diagnostics. Let’s not forget the addition of more control modules. It will be a continuous task for aftermarket scan tool providers to match the sophistication levels of various diagnostic systems.

While car scanners are some of the most essential equipment that technicians have in their workshops, they’re often not utilized to their complete potential. Aftermarket and OEM scan tool brands need to find a way to regularly educate and train technicians on the use of their scanners.

Take, for example, tech-service bulletins. Seamless feedback or a two-way (bi-directional) communication channel should also be made available to repairers.

Technicians can also form a network where knowledge is shared, such as the iATN (International Automotive Technicians Network).

The intuitiveness of scan tool interfaces needs to be enhanced for auto technicians to understand them better and to go through each scanning process with ease. What about the standardization of user experience so that the diagnostic protocol can be the same regardless of the vehicle the scanner is connected to? This will make things far less complicated for the expert.

Tools can be connected to the internet for faults to be researched, and compatible mobile or PC apps related to vehicle diagnosis should be developed. Crowd-sourced diagnostics and analyses of repair orders should be made available with the aid of proprietary CANs (controller area networks). There can be as many as multi-millions of reports in an ever-growing database.

The use of conventional diagnostic tools by technicians means that scans need to be conducted while being physically present with the vehicle. This makes repair and maintenance periods longer, work expenses higher and customer satisfaction lower. However, the use of remote diagnostic tools will pave the way for an easier, faster, better, more robust and convenient service delivery by the technician.

Security breaches are also a problem that industry stakeholders are concerned about. The utilization of cloud-based car scanners will help protect analytic onboard systems from hackers.

Final thoughts

There could be a time when most cars will have remote diagnostic systems that are supported by cloud-based technology. Carmakers will try to offer all the necessary scanning functionality with such setups. Vehicle owners will only need to subscribe to the remote diagnostic services of manufacturers to get unlimited access to OBDs. Such could be the case instead of buying aftermarket car scanners.

The presence of display screens in each vehicle will make the system more useful and effective. Auto technicians and tech providers will have to move with the trend as quickly as they can adapt.

Tim Miller is an auto mechanic and the editor-in-chief at obdadvisor.com

This article originally appeared in the December 2021 issue of CARS.

If you would like to submit a technical article, contact us.

Images courtesy of Depositphotos.com

The post Taking a closer look at car scanners appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Zara Wishloff, President, CEO | Automotive Parts Distributors

The next 12 months will be challenging to the aftermarket for several reasons. We’re at the tail end of a double whammy on supply. We are seeing high inflation combined with supply issues. Inflation is running higher than policymakers anticipated. They are pivoting from a temporary outlook and now conceding to higher inflation. The actions of printing money in response to the pandemic are causing raw materials to increase.

Supply is also constrained. We all felt the results in 2021. It will be several months, if not years, before the backlog has caught up. This has also contributed to the inflation concerns and has challenged us with a very inconsistent supply chain.

The opportunity is there when aligning with suppliers facing fewer issues. Some manufacture in countries less affected by shipping concerns. Some are locally manufactured. Others have a greater ability to use air rather than water to get their products to our markets. While there is a struggle to supply common items, some jobbers have the opportunity to gain market share by simply having the ability to fill orders.

The inflationary environment also helps our aftermarket with economies of scale. For a used car worth $4,000, it might not have been prudent to spend $2,500 on a repair. However, with that same car now commanding $7,500 on the open market, the repair is much more justifiable — and consumers are more likely to proceed with the job.

The risk associated with this strategy would be the end of inflation. If we hit a deflationary environment and the cost of these materials corrects to pre-pandemic levels, we could get caught with this inventory gamble and have

The post Jobber News Executive Outlook: Zara Wishloff appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

JC Washbish, Vice President, Sales and Marketing | Aftermarket Auto Parts Alliance

The next 12 months should see a nice increase in demand, and business should be up through all levels of distribution — from the warehouse to the jobber to the shop. The average age of the car parc continues to increase and vehicle manufacturers continue to face headwinds as we kick-off 2022. Used vehicle demand remains at record levels. Those problems will continue to help the aftermarket.

Jobbers and retailers will continue to see a squeeze for “face time” or “screen time” with the customer as their biggest challenge moving ahead. Now, more than ever, your digital presence is the ‘it’ factor when it comes to supporting your business. We learned in the pandemic that real-time updates to hours of operation, images of your stores and inventory all influenced customers’ behaviour when it comes to where they decided to shop.

As for the biggest opportunity for automotive distributors and retailers, with the hopes that this awful pandemic winds down and we are able to emerge restriction-free, then we should see an excitement to be out and about.

Canadians are ready to travel, to vacation and to get back on the road. There will be more demand to fix that vehicle that has been hibernating in the garage for too long.

The post Jobber News Executive Outlook: JC Washbish appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Sean Stokes, VP of Auto Parts and General Manager | Partsource

Inflation will drive higher prices in the automotive aftermarket and supply chain disruptions will continue into 2022. I anticipate that total kilometres driven should climb back to 2019 levels by the end of the year, which will help drive maintenance categories like brakes, oil changes and tires.

Inventory, for the right VPOP (vehicle population) in the market, will continue to dominate while the transformation of digital customer service will continue to accelerate.

I think one of the differentiators in 2022 will be a jobber’s ability to attract and keep good talent in order to provide their customers with the best service.

Rising costs (product, supply chain and personnel) will threaten the profitability of businesses if they have been a low-cost provider to the market. Demand for high-quality products will continue to grow even in the face of inflation. Installers don’t want to risk needing to reinstall a part again and denigrating profitability more. We have been focused on creative ways to mitigate cost pressures and keep commercial pricing as competitive as possible.

With continued SKU proliferation in the market and supply disruptions, the importance of strong supply partnerships (with other jobbers or vendors) will be critical to driving customer satisfaction and overall gross margin return on investment for the jobber.

I anticipate that aftermarket sales will grow in 2022 but it will continue to be a challenging environment. I think the biggest opportunity for jobbers will be to continue to invest for future growth.

The post Jobber News Executive Outlook: Sean Stokes appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Mark Krasicki, President, CEO | The Unified Parts Group — 2021 Jobber of The Year

After the last 20-plus months, our industry and many others have evolved and/or have experienced volatility and have been very unpredictable, at best.

I believe the aftermarket industry will continue to experience supply chain challenges, which will make relationships with leading supply companies that much more critical, doing business going forward. Technology will also be a more and more important part of doing business in the future.

With a huge reduction of new car sales, this will also boast well for the automotive aftermarket.

The automotive aftermarket will be rated and judged by their ability to deliver to their customer on demand. So, those who make investments in inventory, investments in technology and continued investments in relationships will determine the success of our aftermarket industry.

Our industry continues to deliver challenges, excitement and rewards to those who participate. And those who meet these challenges with strategic planning, investments and marketing, should see positive results in 2022.

The post Jobber News Executive Outlook: Mark Krasicki appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Bill Hanvey, President, CEO | Auto Care Association

The agility and adaptability of the automotive aftermarket continue to inspire and reassure. As supply chain issues continue, aftermarket companies anticipate raising their prices, if not already. They’re also making significant investments in inventory to support customer demands.

Businesses will need to adjust pay scales, benefits and understand what their employees need to increase retention. Businesses are diversifying their supplier base and exploring new vertical integrations that are out of the box to reduce reliance on external factors.

For the supply and distribution side, having the guts to think outside the box to find solutions can be a challenge for many. Supply chain logistics today present themselves as a puzzle — but there are options like diversification, vertical integration, new partnerships, acquisitions and mergers.

Apathy is our greatest threat. Business is good. We are growing despite a pandemic. Parts supply can’t meet demand. What’s not to like? Well, if you look at the threats our industry is facing from both a regulatory and technological standpoint, we need to all become more activated in preserving our future.

2022 presents numerous growth opportunities. Miles driven are back up. Adverse weather events create opportunities for maintenance and repair. The average vehicle age increased to over 12 years. The longer consumers keep their cars, the more maintenance they need. Couple that with the supply chain challenges and chip shortages for new vehicles and the aftermarket is in prime position to experience continued growth. Delayed maintenance grew 20 per cent in 2020. Not to mention the explosion of e-commerce in our industry. Take your pick.

The post Jobber News Executive Outlook: Bill Hanvey appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Josh Gordon, President, COO | Spectra Premium Mobility Solutions

Continued global supply chain disruptions in raw materials and microchips have prevented new vehicle manufacturing capacity from keeping pace with demand in the U.S. This situation points to an acceleration of current trends on vehicle age in the North American car parc. With the average vehicle age increasing faster over the next 12 months, expansion of the aftermarket and used car industry will accelerate with it. Providing service and repair parts for a thriving used car market will continue to be a huge opportunity.

Onshoring is the natural response to the current supply chain issues. Transportation shortages from ocean containers to commercial drivers coupled with strong demand all make manufacturing in North America competitive and attractive again. Suppliers will need to invest strategically in new manufacturing capacity.

Supply chain challenges have redefined value delivery in the aftermarket. Product availability is now of paramount importance to aftermarket customers and end-users.

North American manufacturing is at the cusp of a rebirth. As the offshore industry is challenged through force majeure and macro impacts (pandemics, weather, natural disasters, regulations, etc.) to provide customers rapid delivery, customers are increasingly embracing North American supply strategies. This is the opportunity for North American manufacturers to seize back market share from Asia.

The post Jobber News Executive Outlook: Josh Gordon appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Tony Del Vasto, VP, Marketing and Corporate Development | Vast-Auto

For the next 12 months, there will continue to be labour shortages that will affect the aftermarket. Parts supply and price pressures will continue to be issues. Electric vehicle penetration will start to accelerate in the marketplace. E-commerce will continue to cannibalize brick and mortar. Automation in distribution centres will become more of a consideration. Right to repair, otherwise known as access to data, will continue to be a topic of conversation. Finally, the evolution of assortments into cheaper products in certain categories will continue.

Labour shortages and part supply issues will be negatives for the industry. These will be the biggest challenges going forward. Without parts or people, you can’t run a business. Electric vehicles will also be a negative, as they will take internal combustion engine vehicles out of the service bays.

On the positive side, e-commerce and automation are opportunities for the aftermarket.

Going forward, the aftermarket needs to learn to digitize the supply chain. From the manufacturer to the end consumer, there needs to be a digital trace of transactions and opportunity to work less based on human touch and more based on technology. We’re already seeing some of that with all of the shops being connected to the stores, the stores being connected to the warehouse, and so on and so forth. The trend will continue.

The post Jobber News Executive Outlook: Tony Del Vasto appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

J.F. Champagne, President | Automotive Industries Association of Canada

We expect to continue to have turbulence caused by the ongoing pandemic, which is amplifying the challenges on the supply chain and labour front.

We remain an essential service to Canadians and AIA Canada continues to advocate to governments to ensure support to help alleviate the strains on the supply chain and ensure investments in the industry for the retention of labour and upskilling.

Sourcing of parts will remain the primary challenge for wholesalers and warehouse distributors. However, attracting and retaining employees is also an ongoing challenge.

But right-to-repair has a more long term and profound impact for our industry. Will we have the right legislation to ensure consumers and shops still have access to aftermarket parts to fix their cars? Or is the future maintenance and repair of vehicles to be only OEM parts?

We have proven to be a resilient industry that is providing essential services to Canadians by keeping 30 million cars safe and working on Canadian roads. We have the opportunity to engage with our local politicians to tell our story and get them to understand that the aftermarket is important to local economies.

We need right-to-repair legislation that will ensure the aftermarket can continue to be effective and resilient.

The post Jobber News Executive Outlook: J.F. Champagne appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Niall Black, Vice President | Motorcade Industries

I see the aftermarket continuing to change over the next 12 months due to various prevalent forces having a significant impact on day-to-day operations. Labour shortages, price increases, abnormal cost of living increases, and the challenges associated with inconsistent inventory availability, are all going to force change. The jobber will have to be more creative with existing personnel and when hiring new employees. They’re going to have to forecast inventories differently based on the market forces impacting supply, and they’re going to have to adjust buying and selling practices to ensure competitiveness while also maintaining profitability.

There will certainly be numerous challenges facing jobbers in the year ahead but I feel inconsistent inventory supply will be the most challenging of all. With increased demand for aftermarket components, numerous supply chain issues and labour shortages regionally and globally, it’s the perfect storm contributing to inconsistent inventory availability. The current inventory availability issues are the worst we’ve encountered since the pandemic began. From everything we’re reading and hearing, there is minimal short-term relief. This will impact the aftermarket across all levels for the foreseeable future.

I believe the biggest opportunity in the year ahead is clear and concise communication internally and externally, so staff and customers are well-versed on the status of key day-to-day scenarios. There are numerous fluid situations impacting everyone across all aspects of the aftermarket that information — be it an FYI, good or bad news — will help to temper uncertainty and frustration. Those that communicate and explain the factors impacting their business and the customer, will maintain and build trust and understanding. This will therefore enhance the jobber-client relationship.

The post Jobber News Executive Outlook: Niall Black appeared first on Auto Service World.

We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in our January 2022 issue.

Shiva Bhardwaj, Founder, CEO | Pitstop

The major impacts today to the automotive aftermarket are related to shortages in new vehicles (due to supply chain issues around silicon chips). This is causing the used vehicle market to inflate drastically.

As a result, the repair and service of vehicles will increase as everyone will keep their vehicles on the road for longer periods of time. For example, rental car companies had 80 per cent of their fleet as new vehicles — that has now flipped to only 40 per cent because of this change.

Getting access to components and parts may be limited because of the supply chain shortages that we are experiencing. It doesn’t seem like these shortages will be alleviated quickly and so companies will need to be able to cope with high demand and low supply.

Getting access to inventory on products you sell will be critical until things normalize which could take six months or longer.

The biggest opportunity is preparing for electrification. Today, electric vehicle volumes are relatively low. However, every major OEM has announced a lineup of EVs that will hit the road in the coming years. Investing the time and resources in being EV-ready will enable jobbers to carve their niche in a new and developing market. The EV market will grow exponentially and could change the entire way you generate profits in 5 years.

The post Jobber News Executive Outlook: Shiva Bhardwaj appeared first on Auto Service World.

Déjà vu.

That’s what January 2022 felt like — a mirror image of January 2021.

Back in the fall, when industry observers like us get their crystal balls out and begin auguring trends for the year to come, I had a markedly different idea of how 2022 will unfold. But so did the COVID-19 virus.

Based on the pre-Omicron scenario, I had expected supply chain disruptions to slowly ease off, vehicle sales to pick up and miles travelled to see a sharp rise. Those predictions now seem as certain as flight schedules these days.

But 2022, in many ways, won’t be an exact repeat of 2021. Things may look gloomy now but there’s some hope. Canada will most likely have a well-boostered population by the end of Q1. If the early insights into Omicron’s relative mildness hold, we may be finally making our way into post-pandemic stability.

The automotive aftermarket has weathered the COVID-19 storm better than other transportation sectors (e.g., new car sales). The industry can also expect more of the same from last year, but with some differences as we progress deeper into 2022.

So here are my top predictions for the industry this year…

Another growth year

Let’s start with the good news. While there’s no reliable overall industry revenue data for Canada, 2021 was a great year for the aftermarket — despite all the supply chain woes. If we use the U.S. market as a proxy, then the Canadian market most likely saw revenue increases between five and 10 per cent in 2021. Uni-Select reported similar cumulative revenue growth between 2020 and 2021 for the first three quarters, to use a Canadian example.

The growth can be attributed to a simple market rebound following a steep decline in 2020. But there’s at least another factor driving the spurt. Vehicle sales remained low in 2021 because of the chip shortage. As both new and used cars were hard to find, people retained and repair their older vehicles, leading to higher demand for auto shop services.

Vehicle sales will continue to be as anemic as 2021 — at least for the first half of the year. Scotiabank Economics has forecasted 1.77 million sales in 2022 (already a much lower figure than the 1.8-1.9 million units we have been hitting consistently in the past). Given the current Omicron threat, I doubt if sales will cross 1.75 million this year.

Another year of low sales — with stable vehicle miles travelled — is very likely to translate to dollars for the aftermarket. Based on my calculations, I think the Canadian aftermarket will increase by 10-12 per cent in 2022.

Auto parts prices, supply to remain volatile

The double-digit growth prediction above might seem too optimistic to some. But hear me out: Most of that uptick will come from price increases, not volume.

Eucon’s analysis of millions of pricing data points in North America shows hard parts prices went up by about 8-10 per cent in 2021. The increases were even higher for certain categories. Supply chain issues and high freight charges were largely to blame for the sector inflation, and costs were passed down the distribution chain.

Many of these costs were initially absorbed at the top of the aftermarket chain (e.g., by suppliers) but analysis shows that they started to trickle down to shops and consumers in the second and third quarters of 2021. Even without Omicron, part prices would have continued to rise in the first half of 2022. The new pandemic surge, and the continuing supply chain issues, will only prolong that upward trajectory.

This trend will continue — in fact, it is likely to get worse in 2022. That can’t be good news for shops and part stores that are already saying that the situation is dire.

Labour shortage

Hiring skilled technicians and counter people was a challenge even before the pandemic. Numerous studies and models have been predicting an acute shortage of labour — particularly for the aftermarket — for the next few years.

COVID-19 has now both accelerated and exacerbated the problem.

Statistics Canada reports that job vacancies are at an all-time high and wages have grown at the quickest pace in many years. For instance, average hourly wages in November were 5.2% higher compared to the same month in 2019.

This trend will continue — in fact, it is likely to get worse in 2022. That can’t be good news for shops and part stores that are already saying that the situation is dire. Through my interactions in the industry, I have heard many stories of cars sitting in the bay or shops having to turn away customers because they don’t have enough technicians.

Over the next few months, aftermarket businesses will have to brace themselves for higher costs of hiring. If payroll costs go up, shops and stores will have to pass them on to their customers or forfeit margins.

Digitization will continue to ramp up

2020 was a watershed year for online parts e-commerce. According to data from Lang Marketing Resources (as published in the 2022 AutoCare Factbook), online aftermarket sales in the U.S. jumped a whopping 37% in 2020.

Although Canada is far less evolved than the U.S. when it comes to parts e-commerce, and reliable data is not available, I have observed very strong localized interest among industry players in positioning their products for B2C online channels. Even B2B platforms from the likes of Worldpac, Altrom and NAPA are being constantly beefed up with new tools and functionalities to make the ordering process more seamless for installers.

Kumar Saha is the Toronto-based managing director of the Canadian operations of global aftermarket intelligence firm Eucon. He has been advising North American automotive industry for over a decade and is a frequent conference speaker and media commentator.

The post Analysis: Meet the new year … same as the old year appeared first on Auto Service World.

Click the banner above to listen to the February 2022 CARS Magazine Enhanced Media segment.

Jobber News publisher Peter Bulmer and managing editor Adam Malik discuss the views, concerns and ideas raised in the Shop Executive Outlook of the February 2022 issue of the magazine.

To read what each of the 10 executives from across the service and repair segment of the automotive aftermarket think about the year ahead, check out the latest issue of CARS.

The post Enhanced Media: CARS Shop Executive Outlook 2022 appeared first on Auto Service World.

Click the banner above to listen to the Jobber News Enhanced Media segment.

Jobber News publisher Peter Bulmer and managing editor Adam Malik discuss the views, concerns and ideas raised in the 2022 Executive Outlook of the January 2022 issue of the magazine.

To read what 10 different executives from across the distribution segment of the automotive aftermarket think about the year ahead, check out the latest issue of Jobber News.

The post Enhanced Media: Jobber News Executive Outlook 2022 appeared first on Auto Service World.

We pick a question from our mail bag this week, and dive into what every shop needs to think about as they build their web presence. There are a lot of social media options and landing page ideas… but are there land mines to avoid?  Yes. Here’s one: Not being responsive to customer queries on your website.

Subscribe on Apple Podcasts HERE

Subscribe on SoundCloud HERE

The post Podcast Commentary: Staying on top of your website appeared first on Auto Service World.

By Allan Janssen

One thing I’ve learned about my cell phone is that it doesn’t like aftermarket sync cords.

If I buy a pink one at a gas station because my battery is dangerously low and I forgot to bring my own cord, my phone will look at it blankly and then continue to power down.

It is original equipment or nothing for my phone – a costly and often inconvenient condition for me.

Some vehicle owners take the same approach to replacement auto parts. For reasons real, projected, and imagined, about 20% of vehicle owners routinely ask for OE parts. And they’ll get them as a default if they go to a dealership for their repair and maintenance.

But if they prefer the longer hours, personalized service, and multi-make competence of an independent shop, they may have to insist a little harder. Why? Because according to a fascinating new survey by Carlisle & Company, on behalf of Motor Information Systems, the majority of parts installed at independent shops are aftermarket parts.

OE parts are generally
lacking in price, margin,
and delivery times…
three of the most
critical considerations
at repair shops.

Looking at all mechanical repairs, a little more than a third use genuine OE parts. The balance (64%) are non-OE parts. This is reassuring news for the manufacturing and distribution side of the aftermarket. But the reason for this situation bears examination.

There are some useful lessons for jobbers among the survey findings:

•  A catalogue or online part search will return multiple manufacturer options two-thirds of the time… but OE parts are identified as an option only 42% of the time.
• The vast majority of independent shops do not place high value on one-stop shopping. They’ll shop around for the best price and availability.
• OE parts are generally lacking in price, margin, and delivery times – three of the most critical considerations at repair shops.

It is true that, generally speaking, OE parts are seen as better than aftermarket parts for quality, fit, and customer satisfaction. Furthermore, they’re on-par with non-OE parts for availability, tech support, and warranty. But the cons outweigh the pros, it would seem, and jobbers who excel at inventory management, delivery efficiency, and price control will continue to do well with independent repair shops.

In fact, the Carlisle & Company report finds that dealerships dramatically overestimate how long independent shops are willing to wait for the delivery of a part. Because OEMs cannot sell parts directly to independents, OE parts must be sold via their dealers. The dealerships are actually the suppliers here. While independents want their parts in an hour, dealerships tend to think (erroneously) that they have 12-24 hours to deliver the part. No wonder their sales are so low!

The Carlisle report makes fascinating reading, and we’ll put a link to it on our website. Feel free to see what the stakes are when trying to capture sales to independent repair shops.

But you may find the key takeaways are the things you already knew: your customers expect excellent service, great delivery times, and the best price. Those things may never change.

You can download your copy of the white paper, at no cost, HERE.

What do you think? I’d love to hear from you. You can reach me at allan@newcom.ca.

The post COMMENTARY: Capturing the sale appeared first on Auto Service World.

By Zara Wishloff

The extreme changes in the market are putting a spotlight on business philosophy.

I have witnessed companies embrace marketing with renewed vision and excitement. They have come to see it as an investment.

I’ve also seen companies mishandle marketing – fumbling the message or cutting back because they see it as an expense.

I find that the companies that reign in their marketing efforts during hard times are the same ones that never fully realized the benefits of a strong sales strategy when times were good.

The simplest analogy I can think of is fishing.

When you’re out on the lake and the fish just aren’t biting, is the answer to pull your rod? Or switch up your bait and throw a few more lines into the water? The answer is simple. If you want fish, more hooks makes sense.

Sticking with that analogy, there are times when there simply are no fish to be found. The market has changed. Or the economy has soured. You can verify the situation with analytics (in this case, a fish finder) and make an informed decision about moving your boat, or even leaving the lake entirely.

In this analogy, fishing represents your marketing efforts. When I see companies starting to pull their lines in as it were, by limiting sales calls, reducing their salesforce, and curtailing promotions, I get the impression that they’re giving up on marketing. They believe the lake is dry.

Giving up on marketing is part of a self-fulfilling prophecy. Reduced effort means reduced results. Lacklustre results seem to confirm the decision to reduce marketing. It’s circular logic.

Put simply, you’re not going to wind up with the same number of fish in your boat without sustained efforts to catch them.

So why do some companies fall into a spiral of reduced marketing efforts and dwindling sales? It might stem from the fact that the cost of marketing is easy to quantify, but the results are often difficult to measure. The wisdom of investing can be clouded by ambiguous statistics. You start asking yourself some difficult questions:

• Were the last six months good because your sales and marketing efforts struck a nerve in the industry? Or were they good because the local market turned a corner?
• Would your results have been as good without the promotion, the flyers, and the trade show?
• Would your customers have made the same purchases with or without the ad you ran?
• Are they buying from you simply because you have it on the shelf? Or because they have a strong and trusting relationship with your sales staff?
• Did the promotion really add to your sales, or just come straight off your bottom line?

Companies that have never felt the value of an effective sales and marketing strategy are quick to eliminate or reduce it when sales start to slow. It’s a bit of an artform to devise an effective strategy with creative promotions while still adding to your profitability. Promotions always need to have a specific and definable goal. Whether you are trying to increase sales by a certain percentage, build loyalty, strengthen relationships, or create awareness you have to figure out a way to measure its success. Carefully planned and with the proper investment of time and money, it will always get a return.

Everyone needs marketing. There isn’t a company in the world that will thrive if its target customers don’t know it exists. There isn’t a product on the market that will make money if people don’t know where to find it, how to use it, and how to get it.

It goes without saying that whatever you invest in marketing, you should be getting a return that covers the cost. There’s a proven formula that you can use. Take the sum of your sales growth minus the marketing cost, and divide it by your marketing cost. That represents your return on investment.

So if you normally sell $5,000 worth of widgets a month and you spend $500 to promote them and you see your sales jump to $9,000, your return on that $500 is 700%.

You can advance these formulas to factor in average organic sales growth over time, or a variety of other factors… whatever makes you feel comfortable that you’re measuring actual results from your investment.

And for those of you who have been tempted to reduce your marketing spend, consider this: If investing in sales and marketing brings a return, the same must also hold true in removing marketing cost. There is a penalty to pay.

What message is a company sending to its staff and to the market when it pulls its marketing investment? That’s generally seen as a short-sighted move to hit a temporary goal.

True, the business environment often forgoes long-term brand investment to achieve quarterly results. But be careful, because from the outside you’re conceding that there’s little or no growth to chase and you see nothing but a decline of market in the future.

Zara Wishloff is vice president of sales and marketing for Automotive Parts Distributors (APD) with four warehouses in Alberta and Saskatchewan. You can reach him at zwishloff@apdparts.ca.

The post Commentary: Fishing for profits? Don’t neglect your marketing! appeared first on Auto Service World.

By Allan Haberman

It’s hard to believe that some provinces still do not require automotive service technicians to be certified.

Despite the growing complexity of modern vehicles and the potential for road carnage due to poor maintenance, some provinces, like B.C., Manitoba, and Saskatchewan, have not mandated certification for service technicians.

They have deemed auto repair to be a “voluntary” trade, where a certificate of qualification is available but is not required to work in the trade. Aspiring technicians can complete a series of tests to prove their competence… but they don’t have to.

In other Canadian provinces, including P.E.I., Nova Scotia, New Brunswick, Ontario, and Alberta, auto service is a compulsory trade, meaning technicians require a certificate of qualification or registration in an apprenticeship program in order to work in the trade.

This is as it should be.

With something
as important to public safety
as vehicle maintenance,
is it wise to eliminate
trade standards
altogether?

Unfortunately, it is not the case right across Canada. Perhaps some provincial governments are loath to introduce any career roadblocks that would discourage people from entering a trade that already suffers from a shortage of qualified technicians. But with something as important to public safety as vehicle maintenance, is it wise to eliminate trade standards altogether?

Servicing today’s vehicles requires more than a mechanical aptitude and a passion for cars. There isn’t a system on a modern automobile that doesn’t involve some form of electronics. Even a simple oil and filter service will likely require a maintenance reminder reset procedure. Some of these resets may even require the use of a scan tool – not an easy tool to master without adequate training.

Diagnosing most problems on today’s vehicles requires access to an information system with complex wiring diagrams and system operation descriptions. Without this information and the proper equipment, solving even simple problems is next to impossible.

Technicians must have a working knowledge of electrical systems and electronic theory. Without this base of knowledge and above-average reading comprehension skills, diagnosing a system fault can become a guessing game.

Can we all agree that throwing parts at a problem has never been an acceptable repair procedure? This destroys consumer confidence in the repair industry.

In the United States, a voluntary testing and certification system is available through the National Institute for Automotive Service Excellence (ASE). The general consensus is that this system, while not nearly as comprehensive as the Canadian apprenticeship program, offers consumers some assurance of technician skill.

Perhaps the provinces that haven’t designated auto service as a compulsory trade should adopt this system. At the very least, a well-recognized logo would give consumers some confidence in their service providers.

Today’s technicians need to constantly upgrade their skills to keep up with the rapid change in vehicle technology. As vehicles become more electronic than mechanical with each passing year, the people who service them will also have to change. Certification would be a good start.

The time may come when automotive service is a degree program rather than a vocational one. Perhaps that time is already here, and we just have to recognize that fact.

Allan Haberman is an automotive trainer based in Winnipeg, Man.

The post Commentary: Should techs HAVE to be certified? appeared first on Auto Service World.

By Allan Janssen

Every great business needs great suppliers.

Without the products, services, and training they offer, most enterprises would be hard pressed to keep their customers satisfied.

And nowhere is that more true than in the just-in-time world of auto repair.

Your customers expect you to diagnose their vehicle problems efficiently, get your hands on the right replacement parts quickly, and get the job done before day’s end. Given the complexity of modern vehicles, that’s a tall order indeed. And without good suppliers, it’s unlikely to happen.

Given your suppliers’ potential impact on your success, let me ask you a question: Do you reward a particular store with the bulk of your parts purchases? Or do you deal with three or four different jobbers in equal measure?

Industry watchers tell us that splitting the pie equally doesn’t make as much sense as developing a strong relationship with a particular supplier, one that understands your business, knows you and your staff, and is willing to work hard for the lion’s share of your business.

If you have a
special relationship
with your jobber,
you might want
to let them know
how much you
appreciate them.

Those of you who give 80% of your business to a first-call jobber know exactly what I’m talking about. Together you’re creating a productive and symbiotic bond that drives both of your success.

Each year we recognize a jobber that goes above and beyond the call of duty, that has made significant and positive changes in the last 12 months, and that deserves a shout out for their contributions to the betterment of our industry.

As a trade publication, we share your passion for the industry. We’re always looking for good stories to tell – stories about companies that have implemented new work systems, improved productivity, delivered high levels of customer satisfaction, won surprising victories, and overcome real-world challenges.

These stories will fill our year-end issue, as we name the jobber of the year.

Nominations for the 2020 Jobber of the Year are now closed, but we got a bumper crop of great nominations. Stay tuned to find out who won.

The post It’s award season: Here’s to your jobber! appeared first on Auto Service World.

By Tracy Carnahan

For many shop owners, the coronavirus pandemic has been an all-consuming challenge.

Like many people, I have been ‘in mode’ through much of this, and it was good when I finally took the time to think about what we’re all going through and put it into some kind of perspective.

At our shop, the approach we took from the very start was to be there for our community. Not only could we help ensure that vehicles are safe on the road, but we could offer support in other ways as well. We started offering our shuttles to pick up critical and personal items for members of our community – whether they were clients or not.

I think the ‘a-ha’ moment for us was when we posted a note on LinkedIn letting people know we are open, and we are taking the appropriate precautions. It was a tactical message, but we ended it by thanking our team, our clients, and our suppliers for trusting us.

It occurred to me that through all of these unusual circumstances, that’s really what we’re asking for: trust. Not in the traditional way. Not simply trusting that we’ll take care of vehicles and not overcharge. This was a new kind of trust. It was a trust that we would be allies with them against an invisible enemy. Trust that we would keep up to date on the latest guidance from health officials, leaders, and industry professionals. Trust that we would do everything we could to keep people safe.

Our team trusted us enough to come to work, knowing that we would keep them safe. Or if they felt safer staying home, they trusted us to respect that decision.

Our suppliers trusted us enough to continue delivering to us, knowing we had all the proper protocols in place.

Our customers trusted us enough to allow us pick up their vehicles from their homes. They trusted us enough to let us into their vehicles, knowing we would sanitize it when we were done. They knew we would minimize contact if we could – taking information and payment over the phone. And if they had to come into the store, trusting that we had cleaned everything before they go there, and would clean it again after they left.

With those free shuttles, our community trusted us to pick up prescriptions, groceries, and packages for them when they could not go outside.

And, ultimately, we learned to trust everyone else as well, knowing that anyone that came into our store was not sick or knowingly carrying the virus.

The stakes are high, and they remain high, even as society begins to open up.

There was no playbook for this in our industry. Many shops closed, reduced hours, or downsized, depending on their vulnerability, exposure, and comfort level.

We’ve always known that the work we do is important. But throughout this pandemic, we hear numerous times, ‘Thank goodness you’re open!’

It hasn’t been easy, but we stayed open for our community, and our community rewarded us with their trust.

Tracy Carnahan is owner, with her husband Gord, of OK Tire Park Street in Regina, Saskatchewan.

The post Commentary: A new kind of TRUST appeared first on Auto Service World.

By Allan Janssen

Many business owners will tell you with a straight face that the customer is always right.

I don’t exactly know how this is supposed to work. It seems to me that a line needs to be drawn somewhere when unreasonable demands are made. Otherwise customers would be “right” to demand free service.

In principle, it’s a good idea to surprise customers with flexible, accommodating service. After all, it costs you far less in the long run to keep a customer than to replace them. In practice, however, there is real danger in being too accommodating.

Ask yourself
if conceding
a small point,
or adopting
a new policy
is really so
dangerous.

For one thing, you’re giving an unfair advantage to abrasive customers, which can upset your more reasonable customers. No one likes to see boorish behaviour rewarded. Worse, though, a spineless response to bad customers can demoralize your employees. Ironically, it could contribute to a decline in customer service.

So saying “yes” to customers usually involves a judgment call.

It is a much more defensible strategy to say that it is employees, rather than customers, who are always right.

Keeping employees happy is extremely important, especially in the current era of labour shortages and full employment. In the auto repair industry, good employees are the key ingredient to a company’s success. Saying yes when it matters is a very powerful tool in a shop owner’s box.

It’s all too easy to give a knee jerk response if a request strikes you as a little too liberal or generous. You may be tempted to dismiss it as another evidence that “young people today are so entitled.”

But ask yourself if conceding a small point, or adopting a new policy is really all that dangerous.

Management consultant Cecil Bullard tells a good story about one shop owner who complained that his technicians were always “stealing” the snacks he put out for customers.

“If your techs want snacks, get them snacks. What’s it going to cost you? Fifty bucks a month? A hundred bucks a month? Do it!” says Bullard “What signal are you sending if you don’t let them have snacks, or a clean bathroom, or a nice lunch room? You’re saying they’re not important.”

Taking that advice to heart, one of Bullard’s clients put an employee in charge of shopping for snacks. If the techs wanted black licorice, they got black licorice. If they wanted fruit, they got fruit.

“Yes, sometimes the fruit doesn’t get eaten and it ends up in the garbage. That’s OK,” says Bullard. “That guy has a waiting list of 20 top technicians who want to work for him. It’s not because of the fruit. It’s because his employees talk about him at training classes, and they say he appreciates them.”

Customers are almost always self-interested. But your employees understand that their requests have to work for the business as a whole, or else no one will have a job.

So if your employees want something a little more complicated than fruit or licorice, it can be a trick to find the right solution. But there’s almost certainly a solution to be found. Take the time to find it. It will prove that you value your employees.

Let me know what you think. You can reach me at allan@newcom.ca

The post Commentary: Why YES works appeared first on Auto Service World.

A glimpse of what is possible

Our Jobber of the Year award celebrates new approaches to industry challenges.

By Allan Janssen

The backbone of any good business is a commitment to excellence.

The company that routinely does the bare minimum required to meet its obligations will not flourish, particularly in tough times. It’s the company that always strives to exceed expectations, in every situation, that will earn the trust and loyalty of its clients.

Those are the companies we want to recognize in our Jobber of the Year and Shop of the Year issue.

We’ve been doing this for years. We put out a call for jobber stores and repair shops that have made significant changes in the last 12 months. We want our award to celebrate the successes that have materialized in the past year.

It is always gratifying to see how many companies have earned votes as the top business of the year. As a matter of fact, it is a particular pleasure of mine to go through all the nominations, read the success stories, and talk to the nominees whose unique approaches to customer service have led to unexpected rewards. These stories fill my agenda for the following year, as I call on them for advice and opinion.

As a trade publication dedicated to improving our industry, we’re always looking for good stories to tell. Stories about companies that have implemented new work systems and productivity practices that deliver customer satisfaction. Aspirational stories about surprising victories and earned success. Motivational stories about overcoming challenges. These are the stories we want to tell in our year-end issue, as we name a jobber store that has gone above and beyond the call of duty, and an automotive repair shop that stands out from its peers.

For better or worse, some businesses are running on autopilot. They’re doing business as they always have. If it’s working for them, great. If it’s not, I hope they wake up soon. Maybe they’ll learn something from the progressive companies out there that are keeping up with technology, customer preferences, and retail trends.

Maybe they’ll catch a glimpse of what is possible from the businesses of the year.

Got an opinion you’d like to share? I’d love to hear from you. You can reach me at allan@newcom.ca.

The post COMMENTARY: Jobber of the Year rewards excellence appeared first on Auto Service World.

By Richard Bender

Online retailers are out to conquer the world.

That may sound like a fairly provocative statement, but we’re all captive to the undeniable reality that technology is changing everything about the modern world, including the way retail sales are conducted.

And it’s clear the ‘online’ trend is not going away soon.

The inescapable conclusion is that the click-through model is a real and potent threat to traditional stores.

History has shown us that changes in retailing are inevitable and they often occur abruptly. Look at how department stores, and then malls, and then big-box stores changed the North American shopping experience. Those changes were relatively sudden, and increasingly disruptive.

Traditional auto parts retailers – particularly tire sellers – are certainly not immune to onliners. We’ve seen their advance in recent years. Indeed, some traditional stores have already experienced significant financial impact.

But tires have to be installed, and that involves expensive equipment, extensive knowledge, and time – all things that the average consumer is without. So online tire retailers have been extremely active in soliciting ‘install centers’ to complete their sales.

Once online retailers establish a network of install centers and have negotiated with area distributors to supply product to complete the sale, the concept of tire retailing, by means of a traditional storefront transaction will be fatally compromised.

Online tire sales achieve profitability for manufacturers and distributors and, of course, the online retailers themselves. But they do not generate any profit whatsoever for the store where the deal is finally completed.

You’ll be expected
to provide a cut-rate price
for the privilege of
earning a ‘new customer.’

Brick and mortar retailers do not make anything on a tire that is purchased online.

And if you think you’ll make up the difference with an inflated installation price, good luck. Some online retailers have recently taken steps to control the install prices on behalf of their customers.

In other words, you’ll be expected to provide a cut-rate price for the privilege of earning a ‘new customer.’

But let’s look at that new customer. The theory is that he or she will develop such a great relationship with the install centre that next time they need tires (or other service) they’ll do it directly with the tire store, without a middleman supplying the hard part. Unfortunately, there’s simply no evidence to support that conclusion.

Let’s face it, if the consumer is happy buying online and having product shipped to an install centre that will contact them for a convenient appointment, why would they bother to change things up next time? Even if they have a good experience at your shop, there’s no promise they’ll return. They’ve already proven they’re inclined toward online shopping and are quite willing to follow the online retailer’s process.

If tire shops are serious about maintaining a strong presence in the market, they cannot make an installation deal with online retailers. Retailers cannot continue to support a business model that, by design, will financially cripple their business.

Supporting your competition has never been a good business model for success.

Richard Bender is president of the Tire Dealers Association of Canada. You can reach him at richardTDAC@gmail.com.

The post COMMENTARY: Don’t help online retailers take over your business! appeared first on Auto Service World.

By Diane Freeman

Ever feel like the vehicle in your bay just won’t cooperate? Your tried-and-true diagnostic tricks aren’t working, and you just can’t get the vehicle to respond?

You know you have to go back to basics and check the OE service procedures. Problem is you can’t find them. Or you don’t have the right postal code to access them. Or you’re not allowed to buy the correct tools to effect the repair.

Modern auto repair is tough enough without having to deal with roadblocks from the vehicle manufacturer!

That’s the whole reason for the Repair It Right campaign – a coordinated effort by shops, jobbers, manufacturers, and associations to make sure Canadian technicians have access to the tools, training, and information necessary to fix cars.

In the past decade, vehicles have become incredibly complex, employing sophisticated technology that is protected by security protocols and restricted websites. No matter what you’re doing these days, you need the right codes, updates, procedures, and wiring diagrams. Unfortunately, some OEMs just won’t provide that information to the Canadian aftermarket. Or, if they do, they have a difficult and time-consuming process that simply isn’t workable in today’s business environment.

Service Information Requests (SIRs) are notoriously complicated, slow, and incomplete.

That’s why the Automotive Aftermarket Retailers of Ontario (AARO) have decided to tackle the problem head on. There’s a strong consensus not only in Ontario, but nationally, to create a workable solution to the problem of unanswered SIRs.

Joining with the U.S.-based National Automotive Service Task Force (NASTF), AARO has developed the Repair It Right program. We’re determined to secure access to service information, flash data, and reprogramming codes, as well as tools, equipment, and training that have not previously been available in Canada.

Now, if you submit your SIR through the AARO website (www.aaro.ca), you’ll get an immediate response from our team. Have a question? You can talk to someone on our technical hotline at 1-833-787-4020.

We’ve partnered with the right people. Our task force consists of training instructors, licensed technicians, part suppliers, and presidents of tier-one supplier companies. And we have a powerful ally in NASTF, which has worked with OEMs to provide the U.S. aftermarket with excellent repair solutions.

You can become a NASTF member. It’s easy and free. And the benefits are undeniable. And if you’re serious about fixing modern vehicles, you can also register to become a Vehicle Security Professional (VSP).

Considering the changes that have taken place in the automotive industry, and the aggressive way OEMs are trying to grow their service and repair business, it’s more important than ever for the aftermarket to speak with one voice and demand fairness.

That’s what Repair It Right is all about.

Vehicle service and repair is going to become even more complex moving forward. By securing a good working relationship with carmakers, and guaranteeing access to repair tools and information, we’re ensure a bright and promising future for the automotive aftermarket in Canada.

We’re here to help you get what you need, when you need it. If you find yourself struggling to repair a vehicle in your service bay because you can’t get the right service information, get in touch with us.

We’re here to help.

Diane Freeman is the executive director of the Automotive Aftermarket Retailers of Ontario. You can reach her at 1-800-268-5400.

The post Getting real help in real time appeared first on Auto Service World.

By Zara Wishloff

The reputation of aftermarket parts has taken quite a tumble.

There was a time, in the early decades of the automotive industry, when aftermarket parts were seen as the quality alternative to cheap and poorly manufactured OE parts. We offered real solutions to the design flaws that many vehicles had as they left the factories.

Back then, carmakers tended to source the cheapest workable parts they could find in order to increase profits from their volume assembly lines. When those OE parts inevitably wore out or broke down, the aftermarket stepped in to provide quality replacement parts.

Many consumers were willing to spend a little extra for parts that were better made,  from better raw materials, and with innovations that corrected the reason for premature failure. This model built a lot of great aftermarket brands.

Unfortunately, that model began to crumble when carmakers realized the profit potential of the service bays and the parts counters. As carmakers improved the quality of the parts, the aftermarket reacted by reducing their prices.

What followed was decades of aftermarket price degradation. And as the aftermarket companies began to source parts offshore and combine part numbers, they lost their edge in quality. Today the OEM part is referenced as the quality standard. In some categories, aftermarket parts became known as low-quality alternatives. The “whiter box” mentality ensured that people would turn to OEM parts if they wanted the repair done right.

But here’s the good news. Recent events give aftermarket companies a chance to regain their reputation for quality.

With tighter configurations under the hood, a lot of repair jobs have become extremely labour intensive. This means quality is more important than ever. When there is six to 10 hours of labour attached to a small part, that part has a story to tell, and we should be telling it.

Government regulations forcing the development of cleaner-burning cars have also put new strain on carmakers that we can take advantage of. With their emphasis on weight reduction, many of their parts are getting flimsier and weaker. This is the perfect opportunity for the aftermarket to get back to the story of improvement. Why install a lightweight aluminum piece when a cast iron aftermarket part will last much longer and perform more reliably?

And, finally, the rapid pace of new technology has made it difficult for carmakers to introduce vehicle systems that work seamlessly right out of the gate. Fundamental design flaws are once again giving the aftermarket a chance to make things right for the consumer.

The bottom line is that we need to collectively do a better job of focusing on quality. Manufacturers must step up their game and we in the distribution chain need to be able to sell the advantages. Service managers and parts professionals alike need to change the conversation from price to features.

The perception of aftermarket brands is ultimately in our own control. For the sake of the independent repair and service industry, we have to get this right. We have to regain our reputation for being the best solution to automotive problems.

The post Commentary: The quality alternative appeared first on Auto Service World.

Long-time reader Peter Abela sent in this picture of a roadside inspection in St. Thomas, Ont. about 60 years ago. Back then, cars would be pulled over into empty lots and given the once over to make sure they were roadworthy. There are some who’d say all the provinces should still be doing that!

By Allan Janssen

This summer, as I accompany my wife to antique fairs (dragged along, some would say), I expect to come across piles of vintage automotive signs, magazines, and photographs. They’re the perfect collector’s item for people who don’t have the funds or space to keep old cars.

There they’ll sit at these antique shows, nestled between the vintage door knobs and Coca-Cola bottles, gathered in old milk crates or piled on plywood tables, eliciting waves of nostalgia from a steady stream of onlookers.

Old advertisements for spark plugs, engine chemicals, and motor oil… Pictures of white-capped gas jockeys, smiling as they wash windshields and check oil levels… Grizzled technicians leaning over the hood of a car, cigarettes dangling from their mouths as they adjusts the throttle housing or timing chain… It’s not hard to understand the appeal of these keepsakes from yesteryear. For a modest price, you can take them home and display them in your rec room.

What is it that attracts us? The call back to a simpler day? The elegance of the simple technology? The sturdiness and resilience of those early engines?

I don’t know, but I’ve often noticed that many of you shop owners and technicians can’t get enough of these pictures.

We ran a series of collages last year, looking at how automotive magazines have covered common subjects in decades past. It was fun to remember how “the latest technology” was depicted in the 1940s, and how customer service evolved through the 50s.

I’d like to continue our walk down memory lane this year… but not with scans of old magazines. Let’s see some of the photographs in your own collections. This month’s Letters Pages features a shot of a public vehicle inspection in St. Thomas, Ont. during the 1960s. Sent in by my friend Peter Abela, it’s a real piece of history! Public inspection lanes are a rare sight these days. And given the condition of some vehicles, a lot of us would welcome their return.

Do you have something similar hanging on your walls? I know some of you do. I’ve seen them when I visited. Do me a favour and take them down just long enough to scan them. I want to see your shop before you were around, when your father or your grandfather ran it. Or maybe when the previous owner started up.

I’ll reprint it on our website and on the Letters Page of an upcoming issue. We’ll all get a kick out of the way things used to be.

It will be especially poignant given the rapid pace of change that is transforming every aspect of our industry. I imagine these days will soon look as quaint as the old pictures hanging on our walls, and turning yellow in photo albums. Some future technician will look at the stories in this magazine with a bemused grin, laughing at the scan data we puzzle over.

We’re part of the march of time. And while it’s fun to look back, let’s not forget to look ahead!

Got a memory you’d like to share? We’d love to see pictures of your shop in old timey days. Or, better yet, a picture of you working on a vehicle before they were mostly electronic! Send a high-res scan to allan@newcom.ca.

The post Blast from the past: Send us your vintage photos! appeared first on Auto Service World.

By Allan Janssen

At the time of this writing, personal distancing is still very much the norm in our plague-battered society.

There is tentative talk about the easing of restrictions, rooted in the belief that the worst has passed and that we’ve already sacrificed too much in our reaction to the coronavirus.

But there are also calls for ongoing (and increasing) vigilance, built on the fear that as one wave of the pandemic passes, another will arrive… and perhaps this time even more devastating.

For now, though, we remain largely separated. And while the separation is physical, it need not be philosophical too.

Self-division is not new for us humans. We are known for separating into rival camps that compete for political and moral influence. We are conservative, or liberal, or religious, or humanist, or right, or left. There seems to be no end of divisions we can create.

There is a threat that coronavirus will add a few new categories to the list. Some of us could support a speedy return to normalcy, while others insist that normalcy is beyond our reach for now. We could press for tighter restrictions designed to keep us physically safe, or we could lobby for a reopening of the economy to keep us financially secure.

The danger, of course, is that we will let our philosophical differences poke holes in the lifeboat we share. We must take a conciliatory approach to charting a course back to normalcy.

One of the biggest challenges of this pandemic, as has often been noted, is that we are largely prevented from coming together, to work side-by-side to solve the problem. Physically we are separated, but thankfully, we still have tools for mass communication and public discourse. It has simply moved online.

We have seen an explosion of webinars, Zoom calls, and virtual hang-outs. We have been able to share confidences, negotiate deals, and conduct business online. If we cannot meet in the same room, we can still hear each other’s voices, and see each other’s faces as we seek a silver lining in all of this madness.

This fractured human race, with its tribal interests and contrived grievances, needs healthy engagement now more than ever. Many times in our shared past, as we have confronted adversity, we have responded with cooperation and kindness. We must not let the virus steal that from us.

Our associations have demonstrated remarkable leadership in opening avenues of expression. I encourage you all to find a way to share your comments and observations with the industry at large, so we move together through this crisis.

By the time you read this, the situation on the ground may have changed and the normalcy we crave may well have begun to return. If we bring new sensibilities to the workplace as a result of the pandemic, that will be a silver lining indeed.

Please let me know what you think. You can reach me at allan@newcom.ca.

The post COMMENTARY: Seeking Silver Linings appeared first on Auto Service World.

By Zara Wishloff

Society takes a hard stance on racism and sexism, as it should. But it still seems to be quite acceptable to judge people according to their age.

And if you think age discrimination, or “ageism,” only affects older workers, you’re only seeing half the problem.

Yes, mature workers are sometimes denied work opportunities and may even find it difficult to find rewarding employment as they reach the traditional retirement age.

But the ones who arguably face even more discrimination in the workplace are millennials – those who reached adulthood in recent years. They are easily dismissed and frequently targeted as lazy or entitled.

Here’s something I hear all too often in automotive circles: “I’ll never hire anyone born after 1990!” The declaration is usually followed by a scoff and a story of a bad hire or a problematic work experience.

I have never found that age is a predictive factor when it comes to attitude or effectiveness in the workplace.

Over the course of my career, I’ve hired many people and overseen many others. Among them were some who are lazy and some who are full of energy. Some who were selfless and some who felt entitled. But I’ve never found that age is a predictive factor when it comes to their effectiveness.

We just hired two young workers for a new branch. Both are fresh out of high school. They are punctual and extremely hard working. When they’ve finished a task, they don’t stand around idly. They run to management and ask for something else to do.

They certainly don’t seem “entitled” to me! In fact, tell me which of the following two people you think is more likely to act entitled.

Person A is a recent college grad with a burdensome student loan, working a minimum wage job and taking on some freelance web work to pay the bills. Car insurance is high, even though they have a clean driving record. And they’re sharing an apartment with three friends to keep costs down while trying to save enough money for a down payment on a house in an inflated market.

Person B is a retired teacher, with a house that is paid for, and no household debt. They’ve begun enjoying a full pension that allows them to spend most time at family cottage, while their spouse continues to work, collecting six-figure income.

Who could use a discount buying toiletries at the drug store?

Please don’t misunderstand me. I respect the contribution my seniors have made, both to the industry and to the country as a whole. I certainly appreciate it when they work hard into retirement. We all benefit from their experience and wisdom. And I think seniors who are on a fixed income deserve their discounts.

But decrying a whole generation of young people as being entitled and lazy is simply not fair. And in some cases, it’s downright hypocritical.

If you want to do your company a favour, hire people without regard to their age. Throw out your preconceived notions about the young and the old alike. Invest in people who can help your business grow. Attitude and ability are the key determining factors… not age.

Zara Wishloff is vice president of sales and marketing for Automotive Parts Distributors (APD) with four warehouses in Alberta and Saskatchewan. You can reach him at zwishloff@apdparts.ca

The post COMMENTARY: Ageism is getting old appeared first on Auto Service World.

By Allan Janssen

I don’t think I’m one to overreact in a crisis, but I am taking this one very seriously. Or trying to. There are occasional breaches in my defenses, but they are largely unavoidable and brief. Some of them are calculated risks.

Everyone is making their own assessments about risk factors… and they’re not only health-related. They are also business-related.

It seems crass to consider the metaphorical health of a business when the literal health of millions of people around the world is under threat. But as humans we appear to be programmed to consider our futures. And our futures increasingly hinge on finances. So here we are, balancing the health of society and the health of the economy. We’re almost certain to get it wrong in many small and significant ways. And given that there are some polar opposite strategies in use around the globe, some countries are going to hurt much more than others when this is all said and done

They say adversity brings out the best in people. I’ve found it brings the archetypes out in people. We drop the pretenses and revert to our essential natures.

Here are the people I’ve identified in my own life and in the news:

The Know-It-All. You can’t have a conversation with this guy without being made to feel stupid. They may not have all the facts, but they certainly sound like they do.

The Denier. Compared to this guy, you’re a genius! He thinks this is just a bad flu year.

The Over-Achiever. My nominee is my brother who overnight changed the model of his sit-down restaurant into a secure and sanitary walk-up take-out kiosk.

The Hapless Leader. The politician who misinterprets situations and makes a mess of public policy. I know you have your own candidates for this role because you send me your nominations almost every day! The candidates for biggest buffoon span all political stripes and nationalities.

The Hysteric. Talking this one down off the ledge is a full-time job. Try not to call right after the evening news report!

The Hoarder. Going well beyond mere self-preservation, this miserable jerk puts society at even further risk by creating localized shortages on hand sanitizer and face masks. He deserves every bit of social scorn he receives.

The Hero. By contrast, this is the person who puts everything on the line for society, becoming an example of what we should all be doing.

I could go on and on, identifying other archetypes. You might have observed a few that I haven’t. The point here is to figure out who you truly are in a crisis. Adversity like this reveals the kind of person you are at the heart of things. And while you can’t change your essential nature, you can surely fight against your baser instincts.

Take a lesson from those who are rising to the challenge. Avoid the pitfalls of hysteria and denial. This crisis could go on for many months.

Here’s hoping we all tap into previously unknown reserves of kindness and selflessness.

Let me know how you’re getting through this. You can reach me at allan@newcom.ca

The post COMMENTARY: Who are you in a crisis? appeared first on Auto Service World.

Greenwood’s Garage

The average Canadian repair shop is understaffed by at least three people: One in the bays, one at the front counter, and one in the back office. The excuse that everyone gives for this is that “competent people are hard to find.”

But what if you didn’t have to look for competent people? What if your shop actually attracted them?

Think that’s not possible? You’re wrong. Even these days, shops could have a steady stream of quality applications coming in. The key is to build the kind of reputation that draws success-oriented people.

Here are some points to ponder:

• Does your shop have the reputation of encouraging employees to be the best they can be, and then helping them get there?
• Does your shop have the reputation for paying the best wages in your market?
• Does your shop have a reputation for maintaining a high level of staff morale?
• Is your shop’s physical atmosphere a fulfilling environment to work in, day in and day out?
• Is your shop a fun place to be?

To some, these descriptions may sound impossibly utopian. But all of these qualities are possible with the correct emphasis on training and development. It is management’s responsibility to set the tone of the business… and that includes establishing a workplace culture that celebrates achievements, unity, and teamwork.

Too often, owners or managers think that as long as an employee has the necessary skills to do his or her current job, no further training is required. This is a recipe for disaster in today’s aftermarket. Forward-thinking shop owners realize the importance of hiring the best people they can find, making them even better at their jobs by offering the best possible training, and then paying them exceptionally well with excellent benefits.

Helping employees reach their full potential is part of developing a truly great staff.

It is important that every owner or manager takes inventory of the pool of talent they have in the shop. Not only must each employee be fully trained to do their current job efficiently and effectively at the highest level, but they must also be prepared to move into other, more demanding jobs within the company, serving a higher function. This starts with personal and professional development.

Employee development improves the effectiveness of employees, and has the effect of driving the company’s ongoing success. When skills fall behind, shop productivity is the first area that suffers. When productivity suffers, net profit suffers.

Can you imagine the strength of your team if everyone were properly prepared to take over a different aspect of the company? Think about the depth of talent you’d have at your disposal. As successful owners know, no one person can do everything. But everyone can be part of a great team.

A word of caution: training dollars do not guarantee success. Training is highly subjective. Its effectiveness can vary from employee to employee, and from year to year. So, it’s important to determine what is the right training, prioritizing the goals you want to achieve.

Have you already planned and booked your key training events for 2020? Do the training classes you’re considering advance the knowledge and talent of each individual? Do you have a proper follow-up process after each class to determine what the employee has truly gained?

In addition to technical classes, are your employees learning the importance of creating a positive total shop experience? Too many shop owners keep their employees in the box, which causes them to stagnate. They cannot reach their full potential, both as an employee and as an individual. When employees have the opportunity to see a wider picture of the business, they develop a higher regard for the various functions that must be carried out on a daily basis in order for the business to succeed. This creates a much healthier climate within the shop, and also allows you to see who might be able to fill any voids when the occasion arises.

Too many shops find out the hard way that knowledge of some key tasks are not widely shared in the shop. When someone is taken ill, or leaves the company, there is a knowledge void that must be filled. It usually prompts a mad scramble to get someone else up to speed to make sure that work gets done. Much better is to make sure ahead of time that you have an adequate depth of talent within the shop, and that several people are trained and able to do every job that needs to be done. People don’t like going home at night stressed out because management threw them in the deep end, expecting them to do something they were not properly trained to do.

Finally, I hear many owners say they “just can’t get away” for management courses or industry functions. Why? Because there’s no one to replace them within the business. This truly is a sign of poor planning, and a poorly managed business. Let’s hope they never get injured or sick, because the business would have to close the doors!

Owners owe it to themselves and their businesses that they are not the only person who understands how the business works. Today’s successful business is a team effort, with everyone sharing in the responsibilities, knowledge, and critical tasks.

Consider your attitude toward continual training and development… before it’s too late.

The post Commentary: Training is no longer an option appeared first on Auto Service World.

If you’re not used to the term ‘Madame Chairman’ being thrown around at AIA meetings, you’re in for a treat.  We’ll hear those words an awful lot over the next year, as Susan Hitchon takes her place in the lead chair of the Automotive Industries Association’s executive council.

Here at Auto Service World it’s the first time we’ve had to think about how to address the incoming leader of the Automotive Industries Association of Canada’s executive board.

Historically, it has always been ‘chairman’ for no other reason than because every person to sit at the head of that particular table has, indeed, been a man.

But as the first woman to assume the position, Susan Hitchon forced us to reconsider the terminology. Is ‘chairman’ anachronistic? Is it a vestige of the patriarchy? Is it inherently sexist?

Hitchon is our first chairwoman. And it seems that in the interest of accuracy, we should call her so. The least of our concerns is that it will require a rewiring of the brain for those who are used to appealing to ‘Mr. Chairman’ whenever they debate matters of urgency.

To some ‘chairwoman’ has a very different flavour, partly because it accentuates the gender rather than the position. It puts the word WOMAN in capital letters. This is wholly opposite to how the word ‘chairman’ works, where we emphasize CHAIR and reserve barely enough breath to murmur the word ‘man.’

Many, of course, will sidestep that whole problem by shortening the word, and creating the gender-less ‘chair.’ This may seem like an elegant solution at first. It certainly rolls a little easier off the tongue. But personally, I don’t like it for its basic inaccuracy. A person is not a chair. Plus, it denies any reference to the symbolic victory a woman’s ascent to the echelons of power represents. Should we not acknowledge that in some small way?

Ultimately, the honorific ‘Madame Chairman’ was Hitchon’s own choice. It was something she said she’s been thinking about, knowing that people would ask her what she wanted to be called.

I’m happy to honour her decision. At her request, she’ll be known as the incoming chairman of AIA.

Like me, she is eager to downplay the fact that her election is a matter of historical note. If anything, the most notable thing about elevating a woman to the chairmanship is that it didn’t happen decades sooner. The automotive aftermarket is late to gender equality. We should not multiply our embarrassment by being too self-congratulatory.

The election of a woman does not necessarily usher in a kinder and gentler approach to representing our industry. It will not necessarily bring more nurturing programs, or more empathetic counsel. Anyone who knows Hitchon knows she will bring her own set of concerns and priorities to the role, informed by market realities rather than gender politics.

I’d like to congratulate her on assuming a difficult role at a difficult time in our industry’s history. I know she’s not one to shy away from tough decisions, and I wish her all the best in the year to come.

I want to hear what you think. Send your comments to allan@newcom.ca.

The post Commentary: This was NOT a gender vote appeared first on Auto Service World.

By Zara Wishloff

It will be a long while before the craziness of the global pandemic fades from memory. If ever.

The Covid-19 crisis hit many, and it hit them fast. Society changed with unprecedented speed in those early days, and our industry – like so many others – came under immediate and tremendous strain.

It was very quickly acknowledged, however, that vehicle repair and maintenance is incredibly important in a crisis. Indeed, we were deemed to be an essential service. That might have surprised some of those on the shop floors of our industry. As a group, we tend to downplay our own significance in society. But coronavirus brought an “ah-ha” moment to our industry, as we were asked to keep critical services operating.

No matter who you think of as heroes during the pandemic – whether they are doctors, nurses, paramedics, or first-responders of another kind – they all need reliable transportation to get to the places they need to be. More importantly, they need to get there in a safe and reliable fashion, without putting themselves or others at risk.

That applies to every critical role in our modern society. From police officers and firefighters to utility workers, taxis, and delivery trucks, they all move products, parts, and people that our society relies on.

I’ve always maintained that our industry can withstand many economic challenges. When times are good, people have money to do the “extra” services required on their vehicles. Yes, they also buy new vehicles, but they splurge on accessories to go with them. And when repairs are necessary, they tend to choose the “best” option. In boom times, businesses and fleets are busy, which also adds to our collective bottom line.

And when times are bad, people still have to get the big-ticket repairs done on their vehicles so they can avoid the additional cost of buying new. They still need transportation to get to their jobs, so maintenance has to get done. The vehicle is one of the critical necessities in most people’s lives.

When times got really bad, we were there to help society soldier on.

Given the economic slowdown of the current pandemic, a few opportunities have arisen for our industry. Office workers who may have otherwise been too busy to bring their vehicle in for service have found themselves working from home. Without the commute, they are finding this is an ideal time to fix that door lock actuator or other annoyance that they’ve been living with for so long. Some people have family and obligations far from home. They need their vehicles to be reliable, as they travel to locked-down cities to care for relatives.

Progressive service providers have pivoted quickly – offering remote pick-ups, contact-free drop-offs, vehicle disinfecting, and other value-added services that are especially appreciated in these difficult times.

They truly are unsung heroes, going into work while so many others stay home.

There’s no doubt our society will come out of this with different perspectives. Our economy will be bruised and battered. What it will look like is uncertain. But one thing is clear: we will look out our windows and see vehicles keeping society moving.

And we will proudly wear the badge of honour that we earned during the pandemic: “Essential Service.”

Zara Wishloff is vice president of sales and marketing for Automotive Parts Distributors (APD) with four warehouses in Alberta and Saskatchewan. You can reach him at zwishloff@apdparts.ca.

The post Commentary: Our badge of honour appeared first on Auto Service World.

By Bob Greenwood

Shop owners who monitor their numbers properly on a monthly basis are more in control of their destiny than they may think. If they study the year-to-date trends that their numbers offer, they won’t be driving in the dark.

Establishing goals for a business is the first step toward success. But once those goals have been established, monitoring key financial criteria and making periodic adjustments is critical to reaching the target.

The numbers give you important insights into know where the business is going, and how well you’re progressing toward your objective. And just as there are signs when you’re making good headway, there are also signs when you’re heading toward cash flow restrictions and net profit problems.

Low Sales & Poor Ratios: When year-over-year sales fall short of your pre-established goals and ratios, it’s time for management to take a close look at its own ability to turn the situation around. This involves a detailed analysis of the governance of the business.

Is your management ‘attitude’ right? Do you have the correct quantity and quality of staff in place? Do you have the necessary equipment to get the job done? Are you carrying the right type and levels of inventory for the client base you serve? Is the facility itself up to job? Does it have the functionality you need? Does it project a positive, professional image?

When you’ve covered these basics, it’s time to review the overall finances of the business to see if one or more of lines are clearly out of whack.

Low Gross Profit Dollars and Percentages: You are going to have to analyze three things very carefully: the gross profit dollars earned on sales, the gross profit percentages made in each revenue category, and the gross profit mix of the shop. When the gross profit of the shop is below objective, it’s time to start asking some tough questions.

Did you capture the correct inventory values? Remember, the cost of goods sold on the financial statement is determined by taking the opening inventory plus purchases minus the closing inventory. Sales minus cost of goods sold equals the gross profit made. Without the correct inventory values, the gross profit numbers and percentages won’t be accurate. This would also affect the net profit of the shop and, in turn, the income tax that the shop pays.

Is carelessness creeping into the business? Do you have sufficiently tight internal controls to ensure that whatever goes into the client’s vehicle is recorded on to the repair order? Too often there are items installed on a client’s vehicle that never make it onto the RO. You paid for those items, and for the labour that installed them! That will dramatically affect gross profit and net profit – and of course cash flow.

Did you change your buy/sell habits over the past year? Working closely with a single jobber can enhance gross profit dramatically. Setting up a strong business relationship with your jobber will ensure you’re buying right – in the right volume, at the right price, and at the right time – which enhances gross profit, net profit, and cash flow.

Has the product mix of the shop started to change? Periodically monitoring the mix of dealer parts and aftermarket parts sales is necessary. And knowing the revenue mix of maintenance, diagnostic, and reflash work will allow you to see what type of clients you’re serving. It will also give you a better idea of what kind of future personnel you’ll need to do the job right the first time, as well as the equipment the shop will need.

Product mix affects gross profit, since different gross profit percentages are made on dealer parts and aftermarket parts. And there’s a different labour rate for diagnostic skills versus maintenance skills.

Understanding the sales mix trend gives you the opportunity to improve net profit and cash flow. Naivety of the prevailing trend, on the other hand, can create management insecurity. When gross profit is not understood in a shop, net profit is affected. When net profit is affected, cash flow dries up. When cash flow dries up, stress increases, and attitudes sour.

High Expenses: Are business expenses out of line? Operating expenses must be examined to discover what is controllable. Some things may be out of your control, or may constitute common sense expenditures in order to attract the type of clients and the level of service you’re trying to achieve. Many shops will clutter up their expenses, all with the purpose of saving tax. Unfortunately, this tends to clutter management’s ability to properly measure the business.

Accounts Receivable: This one hurts a lot of shops and is a major sore point for our industry. Most owners think they must carry accounts receivable or they will lose all their clients. Under close examination, nothing could be further from the truth. Commercial receivables must be managed properly. How can a shop offer the best quality of skill level, a high plateau of personal service at a fair price, and give unlimited interest free credit? This is 1990s era thinking! Things have changed. If the automotive maintenance and repair shop’s receivables exceed 20% of the last six months average monthly sales, cash flow (and most likely gross profit and net profit too) will be affected. Management is creating its own negative business circumstances by not changing the way it thinks about its business.

Accounts Payable Not Current: When a shop cannot consistently pay its monthly accounts in full, there is clearly a very serious problem that is not being addressed. In most cases it turns out to be one of two things, or even both. Accounts receivable are out of control. And the right labour type and labour rate is not being charged out. It’s time for management to learn how to run the business all over again… this time reflecting the “new aftermarket” way of doing things.

Deterioration in General Business Attitude: Shop owners who truly think nothing can be done to improve their lot must understand it’s time to look in the mirror. We’ve heard so many times from owners that the problem is today’s demanding clientele, or pampered staff, or the dying industry, or greedy suppliers. I’m sorry, but it’s time to be blunt. Management’s thinking is simply wrong.

The attitude that management have directly affects the financial outcome of the business. If management will not step out of the box and learn how things could be, with a new strategic plan, then there’s no doubt that the business is heading for serious financial trouble.

Attitude will determine where the business will fit in over the next three to five years. It will be management’s attitude that will determine whether the business will even be around within the next three years. It will be management’s attitude that will determine whether management is paid a professional personal income, or buy them a job. I believe attitude will prove to be the critical factor for business survival and business growth in the next five years.

Measuring the business properly can show, in advance, where the business is heading. It is definitely worth the time and investment, to learn how this is done.

Take control of your business’s destination because it has been proven time and time again “If you can’t measure it, you can’t manage it.”

Bob Greenwood is an Accredited Master Automotive Manager (AMAM) who offers personal business coaching and ongoing management training for aftermarket shops, focusing on building net income. He can be reached at 1-800-267-5497 or greenwood@aaec.ca.

The post Greenwood’s Garage: Are you headed for trouble? appeared first on Auto Service World.

By Allan Janssen

Some aftermarket part suppliers enjoy a reputation for quality that is unimpeachable. These companies are industry leaders, setting the standard for others to meet. Heralded for offering improvements over OE parts, their dedication to research and development is inspiring.

At the other end of the spectrum are those companies that notoriously don’t care about quality, but exist only to give the industry the cheapest possible alternative.

Between these bookends, you will find a great many companies that have a hit-and-miss relationship with product quality. They struggle with consistency.

Visit the forums, talk to your clients, read the reviews, you’ll find that opinions about them will swing from year to year with the great arc of a pendulum, from good to bad, to good, to bad. I’ve been in the industry long enough to have seen several prominent aftermarket companies experience the wild ride of fluctuating consumer satisfaction. It cannot be a comfortable one!

There are plenty of factors that can cause these pendulum swings. Trade issues, market conditions, currency fluctuations, executive instability, technical challenges… all are the enemy of manufacturing success.

It should come as no surprise that many technicians and shop owners place a great premium on consistent quality. Being able to trust a product makes the purchase price easy for them. It gives them credibility in their customers’ eyes, and it builds loyalty.

There’s an awful lot of goodwill in the industry – enough to get manufacturers through temporary challenges and crises. But one too many disappointments will cause service providers to start making blanket statements about shoddy parts, lacking in fit, form, and function.

A recent opinion piece in CARS magazine captured this sentiment beautifully, stressing the importance of consistent quality to the service provider community. If you have not read it, it’s worth finding on our website. The primary point of this “Open Letter to Manufacturers” is that both sides of the market need each other. Service providers need good parts, and part manufacturers need good customers. The single most important quality that guarantees success in this business is quality. It’s the fundamental building block of credibility, customer satisfaction, and profitability.

Jobbers stand between the supply side and the demand side of the auto repair industry. Do you get involved in the question of quality? Do you ask your customers whose parts work and whose don’t? Do you ask them what they’re seeing, what they require, and what they expect in terms of consistent fit, form, function, availability, durability, and affordability?

Most importantly, do you report back to your suppliers?

Your voice carries weight. You are the middlemen. There is power in that. You have a role to play in ensuring that the system works, that both your customers’ needs and your suppliers’ prices are met.

Quality is the benchmark we all need to meet. Everyone’s reputation rests on it – including your own as a parts broker.

I want to hear what you think. Send your comments to allan@newcom.ca

The post COMMENTARY: It All Boils Down to Quality appeared first on Auto Service World.

By Bob Paff

Dear Mr. Manufacturer:

Who is your biggest customer?

If you’re thinking it’s the local jobber or John Q. Public, please allow me to humbly suggest that you give your head a shake.

It is repair shop owners and auto technicians who decide what brands they trust and will ultimately purchase. They are the key buyers of your products, and they purchase a lot of them! Nearly 80% of all replacement parts are sold to independent repair shops.

It is repair technicians, not jobbers, who can give you feedback on your new products. It is repair shops that can best promote your brands. It is the repair and service industry that can reach all corners of this country, even the smallest and most remote markets.

And, just as they can help you, you can help them. They really need your support. Yes, we all know it is impractical for you to have hundreds of field reps to satisfy every market or region. But that’s not what they’re asking for.

They need training to keep them abreast of the latest developments in the industry, technical guidance to help when they get stuck, warranty support when things go wrong, and ongoing customer service to make their jobs easier.

Remember the term “brand loyalty?” Offering these things is how you earn it. When you drop the ball on these responsibilities, your customers get the impression that you really don’t care about their business or their well-being.

Maybe this is what explains the proliferation of cheap offshore parts. You opened the door for that to happen when you cut back on customer service. When you stopped offering product training and support, we lost the ability to tell cheap parts from quality parts. The only differentiator we were left with was price, and that’s not good for anyone.

Here’s a scenario that happens all the time: a vehicle owner comes into a repair shop and says, “My car needs struts. What brand should I buy and why?” There’s a good chance the service advisor can’t answer that question. Without knowing the features of each brand, the shop cannot even start to match a product to the customer’s needs. Availability and price are the only options left.

Or let’s say a particular brand of part repeatedly fails and is repeatedly sent back to the jobber. If you want to keep that customer, an explanation had better be forthcoming. It is not enough to simply replace the part and compensate for labour. We need some follow-up, some kind of accounting, or our trust level will just plummet. We won’t want to install that brand anymore. In fact, all of your brands will become suspect in our eyes.

Repair shops are the finish line for most of your parts… and yet you seem to be out of touch with us.

Want to regain our trust, confidence and patronage? Make a commitment to not just to supplying quality parts, but to helping us do our jobs better, quicker, and more profitably.

Let’s find a way to bring manufacturers and their customers together again. We need you and you need us. Let’s work together!

Bob Paff is the founder of the Automotive Service Business Network (www.asbn.ca). You can reach him at bpaff@shaw.ca

The post COMMENTARY: An open letter to manufacturers appeared first on Auto Service World.

By Allan Janssen

I think it may be the most commonly asked question of societies throughout the ages: What kind of future are we headed toward?

Every age feels particularly aggrieved by the circumstances in which they find themselves, and believe themselves to be particularly justified in asking the question.

Our age is certainly no exception. We are in the midst of a confusing societal flux brought about by advanced technology, and the promise/threat of automation and artificial intelligence.

How will it all shake out? No one knows, but one thing is almost certain: it won’t shake out the way we expect. History has proven that we are poor predictors of the effects of human development.

I first learned in the early 1980s, that economist John Maynard Keynes had long ago predicted that we are headed for a future of increased leisure. He believe that by 2030, developed societies would be wealthy enough that leisure time, rather than work, would characterize national lifestyles. It hasn’t happened yet, but I suppose he still has another 10 years on the clock.

It is timely, however, to reconsider the future of labour. Artificial intelligence appears to be on the verge of eliminating a good number of important and fulfilling jobs – including our own in the automotive aftermarket.

We can’t help but wonder if tomorrow’s vehicles simply won’t need us like yesterday’s did. Are we headed for massive layoffs as we transition to autonomous vehicles that essentially fix themselves, and electric cars that require almost no maintenance?

If these are your fears, you can take heart in a recent report offered by The Fraser Institute. Technology, Automation, and Employment: Will this Time be Different?  offers three reassuring essays by a trio of economists who believe we are not, in fact, headed toward runaway unemployment. Quite the opposite.

They argue that on balance, technological innovation increases overall demand for labour while contributing to higher living standards for most segments of society. Efficiency gains actually lead to wealthier societies that can afford more goods and services, leading to increased demand, which requires more labour. And so the cycle goes.

Innovation tends to create new occupational classifications. As existing occupations fade away, new ones emerge. As economist Art Carden points out in his essay, “Automatic elevators displaced elevator operators, and yet the elevator operators did not starve.”

Some technologists, including Elon Musk and Mark Zuckerberg, believe the development of artificial intelligence will upend the historical effect of new technology. Rather than simply shift the labour mix around, it will destroy the job market. But studies suggest A.I. automation is a direct replacement for very little human work. Rather, it increases the need for the things that humans do well.

Will you be doing in 20 years what you’re doing today? Likely not, but despite the pessimism rampant in our industry, you could very well be in the aftermarket, still dealing with vehicles, parts, and drivers.

These points and more are well researched and clearly presented. I recommend the Fraser Institute study as good nighttime reading for those who need some reassurance about the future.

Worried about your future employment? I’d like to hear what you think. You can reach me at allan@newcom.ca.

The post COMMENTARY: The future we’re hurtling toward appeared first on Auto Service World.

By Bob Greenwood, AMAM

There are many good auto repair shops that are making a solid effort to improve their circumstances.

It has not been easy for them. Change is difficult for any business. But some shops have made tremendous efforts, and the results are seen in their business projections.

I’ve spoken with many of these shop owners, and a common point of agreement is that they’ve reached the absolute limits of their tolerance for jobbers that operate without regard for the value they deliver to their clients.

They have little patience for jobbers who remain unfamiliar with the capabilities of modern computers to streamline business procedures. They are frustrated by suppliers who ignore the power of the Internet and the assistance it can lend in serving ASPs more efficiently. They are troubled by the missed opportunities for better research and clearer communication from their parts providers.

Many auto repair shops have embraced technology and they do their best to stay current. It allows management to be better organized and more in touch with what is really going on in their businesses.

It’s gotten to the point that many progressive shops measure their businesses better than their jobbers do.

Unfortunately, too many jobber sales reps are not very well trained, and they fail to command the respect of their clients. All too often the rep responds to reasonable questions with an awkward, “I’ll have to check on that,” or “Can you leave that with me? I’ll get back to you.”

Successful shop owners have learned to train their staff well, and they are comfortable delegating projects to their employees. If a jobber can’t – or won’t – train their own people to develop professional relationships marked by competence and authority, what does that say about jobber management? Why can’t they trust their own people in the field?

There are still many jobbers who do not respect their service provider clients, or understand the challenges they face. What does that say to progressive shop owners who are seeking a “value” relationship with their suppliers?

Here’s what some jobbers may be missing: Really great auto repair shops develop relationships of trust with their clients. When they make a recommendation, their clients listen carefully, and usually heed the shop owner’s advice. Their shop clients trust them.

How many jobbers have developed that kind of relationship of trust with their ASP customers? When the jobber makes a recommendation – about an upcoming training course, perhaps, or a conference that will be helpful – is the relationship is so tight that the shop owner heeds the advice?

Few jobbers have that kind of relationship with their clients. Consequently, they blame their customers for being short-sighted and unwilling to participate in new programs or events. The jobber says, “I try to get my customers out to training but they won’t go. They never do.”

Perhaps more accurate would be, “I haven’t developed sufficient credibility with them so they’ll take my advice.”

That kind of truth stings, doesn’t it?

Service providers don’t want you just to keep trying to sell them stuff that really benefits you. You have to prove that what you’re proposing is really in your client’s best interest. They’ll be further ahead if they listen to you. They’ll win, not you.

Sadly, too many jobbers act like their very worst customers: they act out of crude self-interest for short-term gain. They refuse to foster relationships, be professional, and take a progressive stance.

Progressive jobbers attract larger, more progressive shop owners. They offer true value, not gimmicks. Their clients are not price shoppers. Their selfless efforts are appreciated. They are rewarded with in excess of 85% of the shop’s business.

Progressive jobbers lead the marketplace. They become the voice of the industry in their communities. They credible, informed, and plugged in.

They don’t blame their customers for lost profits or slumping sales. They don’t accuse their clients of being unprofessional or incompetent. They build up their clients. They’re thrilled and challenged to keep up with them.

I can tell you that ASPs wish this was the description of a typical jobber in today’s market. But it isn’t. There are too few that operate like this. They’re lucky to find one.

A jobber can have a positive influence on the market but not when they run their business in a one-sided fashion, with no regard for the health of the repair shops they do business with.

What is the future of the independent shops in a marketplace served by self-interested jobbers? It is bleak indeed.

We need good, progressive jobbers who will help develop the market. Yes, they really do have that much power!

The best shops in your market area wished you would step up and take your role in the industry more seriously. The entire independent sector would benefit from it handsomely.

Slow down, and re-evaluate your jobbing business and the value you bring to each shop. Prepare yourself to make investments in the marketplace. Stop looking at everything as an expense. Re-examine every client. Assess the volume level, and gross profit level, you could take them to if you got focused on them.

Consider investing in the technology that will raise the level of service you offer. Get focused on your marketplace!

I’m confident, that if you do your homework, you’ll be able to achieve an additional 3 to 5 percent in gross profit. In a $1 million business, that’s an additional $30,000 to $50,000 in gross profit. It is also net profit. If you have another 10 years left in your business, that type of focus represents an additional $300,000 to $500,000.

With that kind of opportunity, I think you’d have to agree it’s worth your time.

Bob Greenwood is an Accredited Master Automotive Manager (AMAM), offering personal business coaching and ongoing management training. You can reach him at greenwood@aaec.ca.

The post GREENWOOD: Get focused on your client appeared first on Auto Service World.

I hate to admit it, but a friend of mine would be a terrible customer for any repair shop. If you see him coming, flip the sign in the window. “Sorry! We’re closed.” You’ll be doing yourself a favour.

He’s a great guy, but he’s always looking for a deal. And as much as he needs his car for a very demanding sales job, he just hates to spend money on it.

He takes it for service, only when absolutely necessary, to one of those small back-alley garages that has an inch of grease on every surface.

It’s one of those “my guy” kind of situations. You know. “You should go see my guy,” he says. “My guy is really good. And he’s cheap too.”

Emphasis on the “cheap.”

Anyway, when my friend’s 2009 Sebring was starting to make strange noises, I convinced him to take it to what I called “a real shop.” See what they’d do, I said, and I recommended a shop with a great reputation for quality repairs and excellent customer service. The real shop found that the Sebring desperately needed a strut mount and they quoted him on the job. But because they’d never dealt with him before and didn’t know his vehicle’s maintenance history, they took it upon themselves to conduct a complimentary inspection.

They presented him with results, which were not atypical for a 10-year-old vehicle. A lot of things needed attention. If he’d authorized it all, it would have come to over $1,700. That was far more than buddy had anticipated. And while he understood that he was under no obligation to purchase the repairs, he found it a little presumptuous that they’d inspected his vehicle at all. He hadn’t asked them to.

I explained that this is a trend in the industry, and a defensible one at that. If he experienced some kind of ignition problem a week later or found that his brakes were metal-on-metal, he’d be upset that they hadn’t pointed that out when his car was in the shop.

The inspection was intended to give him a report on the current state of his vehicle, and he could do with it what he liked.

What he liked, it turned out, was to go back to his guy, who offered a cheaper solution to the strut mount problem – about half of what the other shop had asked for. My friend’s guy scoffed at all the other work the shop had found, but he promised a better price on that work if my friend really wanted to have it done. No surprise, my friend stuck with his guy.

People always say they want to find an “honest mechanic.” I think the problem is that they don’t want honesty at all. They would rather hear some delusional diagnosis that saves them money, than an honest assessment and a plan to restore the value of the vehicle. To paraphrase Colonel Jessup, they can’t handle the truth!

In the end, of course, proper maintenance doesn’t cost more than neglect. My friend’s 10-year-old Sebring is on its last legs. Replacing it will not be cheap. But regular maintenance through the years could have doubled its life… and saved thousands of dollars.

This is the message we struggle as an industry to communicate. It is the consumers who “get it” that you really want as customers.

          I want to hear what you think. You can reach me at allan@newcom.ca

The post COMMENTARY: They can’t handle the truth! appeared first on Auto Service World.

By Bob Greenwood

We’ve seen a lot of changes in the aftermarket in recent years, and there’s more coming. I am not alone in predicting that the next three years will bring great disruption. Yet to my surprise – and disappointment – I hear very few shop owners talking about the coming reality or getting prepared for it.

Are you keeping up with changes in the industry? Does your team clearly understand the new aftermarket realities and the opportunities (and potential dangers) they bring?

If you want to surf the wave that’s coming and not get swamped by it, there’s a new bottom line that you have to start working toward. You have to have a culture of continuous learning in your shop. That must be a priority of everyone in your company, at all levels of the business.

If you want to
 surf the wave that’s coming
 and not get swamped by it,
 there’s a new bottom line
 that you have to
 start working toward.

Vehicle security and safety will be a top priority for carmakers as we move through the ADAS phase and into full-blown automated driving. Consequently, there’s going to be a lot more software in vehicles. Your technicians are going to have to understand this new software and the various operating platforms they function on.

Scan tools will soon require encryption keys and authorization verification. This means the cost of tools will increase dramatically. If you don’t have the right tools, you’ll be essentially “locked out” of vehicle repair, and this will make shops that are not in the game even less profitable.

Software coding will soon be part of the job. The amount software in modern vehicles is measured in the millions of lines… and that’ expected to grow exponentially to the hundreds of millions of lines by 2022. Already advanced driver assistance system features include crash avoidance technology, lane departure warnings, blind-spot detection, lane-keeping, lane-centering, collision intervention, automatic emergency braking, and dynamic brake support. This all takes tremendous computing power. Now is the time to take an “inventory” of each your employee’s knowledge base. You have to determine what type of training is required to enable them to work on tomorrow’s vehicles.

Attitude will be key!

If anyone on the shop team does not have the desire to be the very best they can be or does not want to continue to learn, they must be replaced. Their intentions are shown by their behaviour and their attitude. If you don’t get rid of the worst people on your team, they will drive out the best.

Here’s what every auto repair shop owner in Canada should prioritize:

Plan to train.

Lay out a specific training schedule for the next 12 months for each employee. Find out when and where the courses are being put on, and then register them. Don’t leave this to the last minute. You have to make plans for the shop on the days that you’re short-staffed. It is estimated a competent technician will require a minimum of 100 hours of training per year just to keep up with advancing technology. This will require a new budget line: Training and Development. Your culture of learning culture requires a dollar commitment. Remember, this is not a “step” but a “journey.”

Measure well.

Make sure you’re tracking the key numbers and ratios that monitor the health of your company. Modern business analysis will reveal where net profit opportunities are hiding. Just as your technicians need continual upgrading, management requires six to eight days of full-time training per year to understand new business trends, measurement, and techniques. You’re going to need the tools to measure the business properly daily, weekly, and monthly.

Set multiple labour rates.

Diagnostics capability will continue to play a very important role in your business. In order to offer your clients the services they need without losing money, you will need a minimum of three labour rates. At the very least, you’ll need a Maintenance, Diagnostic, and Re-flash rate. Measuring these types of billed hours individually will play a key role in management decisions to maintain the shop’s growth and internal culture development.

The opportunities to create a strong bottom line in the shop are incredible and very exciting.

We have proven there’s a minimum of $150,000 net profit per year being missed by the average five-bay shop from the current business coming through the door. That amounts to about $30,000 per bay. Larger shops might be missing even more. Every shop owner or manager should be asking themselves where that missing money is and how they can go after it.

That should be at the forefront of their minds.

Shop owners who embrace the new realities and set up their businesses to grow are going to enjoy an exceptional career!

Review your business game plan. Are you ready to embrace the dramatic and exciting change that has started? Or are you going to do the same old things expecting different results?

Bob Greenwood is an Accredited Master Automotive Manager (AMAM) who offers personal business coaching and ongoing management training for aftermarket shops, focusing on building net income. He can be reached at 1-800-267-5497 or greenwood@aaec.ca.

The post Greenwood’s Garage: Gearing up for change appeared first on Auto Service World.

By Bob Greenwood

In every business, there are those who want to cut prices.

They figure that if business is good, lower prices will only make it better. And if business is bad, cutting prices will spur more sales and attract new and existing clients.

The truth is that no business can cut prices without reducing the level of service they offer or the quality of their work. In the automotive repair and service world, damaging either of those will have a dramatic impact on credibility.

Most auto repair shops simply do not charge enough for their products and services. Their margins are already too slim to fuel growth in the business. Cutting prices often makes matters much worse for a shop. They have to increase sales significantly to recover the dollars they lost by dropping their prices. They end up working hard, not smart.

Suppose that you sell 100 units of a certain item every month. They cost you 55 cents each and you sell them for $1, giving you revenue of $100, a gross profit of $45, and a gross profit margin of 45%. If you cut your price by 15% and sold the same number of units, your revenue would drop to $85, your gross profit to $30, and your gross profit margin to 35%.

But, if you want to maintain your original $45 gross profit after the price cut, you would have to sell 50% more units. Here’s what the math looks like (with GPM representing gross profit margin):

So, in our example:

In other words, your original margin of 45% discounted by 15% means your unit volume would have to increase by 50%. You would now need to sell 150 units to maintain the same dollar gross profit you were making when you were selling the 100 units.

Mathematics is a very precise science.

Believe it or not, it would make more sense to have a price hike. If instead of lowering the price of your item, you raised it by 15%, and your unit volume stayed the same, your sales would now go up to $115 and your gross profit to $60.

To figure out how much your sales would have to fall off before your gross profit dollars start to shrink, you use the same formula, but this time you add (rather than subtract) the price change percentage:

You interpret the results from the mathematical formula this way: before you were selling 100 units, and now with a price increase of 15%, as long as your unit volume does not go below 75 units (25% less volume), you are making more money. The price increase would improve your gross profit in dollars from the original $45 even with a sales drop. The math proves that you can sell less volume and make more money.

Selling less actually gives shops more time to spend educate clients, enhancing their credibility, and building the trust factor.

Your ASP client is now working smarter instead of harder. We need more of that. Counsel your clients on the necessity to price for profit and prove your point by showing them the math.

Bob Greenwood is an Accredited Master Automotive Manager (AMAM), offering personal business coaching and ongoing management training. You can reach him at greenwood@aaec.ca.

The post Pricing for Profit appeared first on Auto Service World.

By Allan Janssen

Our friends to the south will soon be casting their ballots to decide who should lead them for the next four years. If you expect me to weigh in on that discussion, you can think again!

Remember the U.S. election of 2000, when George W. Bush and Al Gore were deadlocked for weeks? I made a casual comment about the situation to an American jobber… and promptly lost a friend!

For the most part, we all know what to avoid discussing in certain situations. If we don’t know (as I clearly didn’t) things can get uncomfortable very quickly.

It’s got me to wondering what topics jobbers and service providers tend to avoid when they get together. What are the equivalents to ‘religion and politics’ in our industry?

I believe there are many things that need to be said but, for the sake of decorum and good feelings, they remain unsaid.

What are the
 three main topics
 you’d most like
 to discuss with
 your clients?
 Maybe we can
 get a conversation
going.

I spent some time with a bunch of jobbers last month and I asked a lot of them individually what they’d tell their clients if they had their undivided attention. The most common answer had to do with unpaid bills for parts. Forget 30 days or even 60 days… it is not uncommon for jobbers to suffer with receivables that extend 90 days, 120-days, and longer. By any measure that is untenable. When things get really out of hand, the shop is subjected to the humiliation and inconvenience of C.O.D. shipments. But rarely is the difficult discussion properly broached.

Here’s another one: unfair ordering practices. Some shops routinely order the same part from multiple jobbers to see which one gets there fastest. All other are returned, which incurs the time and cost of restocking.

Or how about this: they order multiple parts from a single jobber because the service advisor or technician is not exactly sure which one they need. ‘Thanks for the selection. Here, you can have these back. I don’t need them after all!’

Speaking with service providers, I could get a similar list of annoyances about their jobbers. The point is that few of these grievances are given proper vent.

We want to hear
what you think.
Leave your comments
below, or check out
our Facebook page.

www.facebook.com/myCARSmagazine

Look, I’m not advocating angry confrontations. But an open and honest discussion can do wonders to clear the air and improve relations. That’s the ultimate goal of this magazine and its sister publication for repair shops, Canadian Auto Repair and Service (CARS). We want to help build relationships. We’re proponents of freewheeling discussions between jobber stores and their customers.

A while ago I sought your input on the issues facing the industry, and I have appreciated the wide range of opinions that have come in. Now I’d like to ask for something a little more focused.

Tell me the three main topics you’d like to communicate to your customers. Let me pose them to my repair shop readers. Meanwhile, I’ll ask them to send me a list of topics for you to consider.

I hope in this way we can facilitate a true meeting of minds. After all, that’s how problems will get solved in ours or any industry.

You can reach me at allan@newcom.ca.

The post COMMENTARY: It’s good to air our grievances appeared first on Auto Service World.

It’s Your Turn

By Les Dobos

Sometimes you encounter a situation that is not only a thorn in your own side, but seems to bug everyone that you know – your friends, family, peers, and customers alike!

The best example of this that I can think of is the problem of people driving around with only their daytime running lights on! It happens all the time on highways, roads, and lanes all over the country.

As a Canadian who drives to work early in the morning, I can’t count the number of cars I pass that are virtually invisible to everyone else – especially when it’s rainy, snowy, or foggy out. Not only are their lights not on, but the colour of their cars blends into the background. You can’t see them until you’re right on top of them.

I can’t help but wonder if these people are stupid or suicidal! With the push of a button or a turn of the ignition, they start driving without even thinking about whether they can be seen by other drivers. For heaven’s sake, you’d think they’d want to be seen!

Modern technology has made much of the vehicle goof-proof. But even with all the fancy electronics, they still have to turn on the lights… and many of them don’t. Forget the technology, they could prevent a dangerous situation by using one of the most powerful computers in the universe, the human mind. And there’s at least one of those in the car with them every time they drive somewhere.

The brilliant engineers who designed the vehicle decided that the lights in the instrument cluster should come on automatically when it’s dark. This seems to fool some drivers into thinking that their external lights are on. And indeed they might be. But if they’re not, they are in grave danger as they hurtle down the highway, especially in dark or earth-toned cars.

I can’t see you!
And if I can’t, that
 means that other
 drivers can’t see you
 either – unless
 they have
Superman’s X-ray
 vision!

This has been a sore subject for me for quite some time. I even sent the National Highway Transportation Safety Administration a letter saying that visual safety is a major concern. In the ensuing exchange of emails I asked the individual I was talking with if she’d ever been frustrated by a no-lights-on vehicle. She said yes, but she stuck to her talking points that “at this time we do not see it as a problem.”

I live in Calgary where the weather can and does change frequently from nice to terrible. One night, while my wife and I were on our way to a party, a sudden snow storm rendered anyone who was driving without their lights on completely invisible. We made it to the party but guess what dominated the conversation all night long. There were plenty of very upset people talking about the danger on our roadways.

Why hasn’t this problem been legislated away years ago? Why haven’t vehicle manufacturers and engineers figured out that having lights come on automatically will not only save lives but save them lots of money too, on unnecessary wiring, switches, space, and weight.

It makes perfect sense to me. Technology can solve this problem easily. We just need to start making some noise about it and insist on some changes!

Les Dobos is manager and service manager at Minit-Tune & Brake Auto Centre in Calgary Alta.

The post Commentary: Invisible cars just asking for an accident! appeared first on Auto Service World.

Service Notes

By Allan Janssen

There must be modern games like Don’t Break the Ice and Ker-Plunk but I don’t know them. So at the risk of dating both you and me, I will have to start this essay discussing these once-popular children’s games.

The idea behind them, of course, was that repeated, seemingly insignificant modifications would eventually lead to massive and irreversible change.

We didn’t realize that’s what we were learning. We were little. But the lesson was there if you looked for it. Remove too many straws and the marbles will fall. Remove enough blocks and the ice will break.

When we grew older, we came to know this as the “trigger effect” or the “domino principle” or the “tipping point.”

Whether you’re talking about marbles or geo-political governance, it’s possible to cross an invisible threshold beyond which change is not only likely, it is inevitable.

With any luck, we’re headed for the tipping point that will bring a flood of much-needed labour into the skilled trades.

The Canadian Apprenticeship Forum (CAF) is doing what it can to remove the straws and ice that hold back the deluge. It recently wrapped up a cross-country tour designed to build on a momentum of ideas and conversation, and turn it into a working strategy to solve the problem.

Executive director France Daviault – a former vice president of the Automotive Industries Association of Canada, and no stranger to the challenges the aftermarket faces with regard to skilled labour – spoke plainly about the tipping point she’s working toward.

“I don’t know what the catalyst will be that finally turns what we know into action,” she told participants at one of the tour’s final community consultations. “I don’t know what will break through the logjam, but it can’t come soon enough!”

Indeed, a recent CAF report estimates that at least 167,000 new apprentices will be needed in the top Red Seal trades across Canada within the next five years to meet the demands of their industries. The growing crisis has spurred much talk in break rooms, union halls, and classrooms.

Each of the community consultations hosted by CAF brought back the same talking points and questions:

* How do we improve completion rates?

* Can we remove barriers to entry, like the high cost of tooling?

* Why can’t we simplify the registration process for apprentices?

* How do we communicate the fulfillment that comes from working with one’s hands?

* Can we position the trades so they’re more attractive to young people?

“I get that we’ve all been talking about this forever,” Daviault said. “As the need becomes more dire, and as businesses start having to turn away work because of a shortage of labour, perhaps when we put our heads together, we’ll identify some tactical items that we can all benefit from,” she said.

Every small effort and each local program has the effect of removing another of the many straws that holds back the marbles. I applaud the CAF for keeping the talk going until truly unique ideas reveal themselves and a co-ordinated plan of attack emerges.

I want to hear what you think. You can reach me at allan@newcom.ca.

The post Commentary: Turning talk into action appeared first on Auto Service World.

By Bob Greenwood, AMAM

As we head toward the end of the year, it may be time to evaluate the year, and think about where you should be by this point.

Hopefully you prepared an annual budget at the beginning of the year, complete with revenue and gross profit projections.

If you don’t have a budget and projections, there’s a good chance you’re simply running the business according to your bank balance. Or maybe you think tracking daily sales is sufficient. You know that’s dangerous, right? When you head into troubled waters without a rudder, your ship is at the mercy of the wind and waves.

Stop fooling yourself. It’s time to get proper advice and training.

Here’s what an effective progress report involves:

1. Calculate your average labour hours produced per work-order or invoice. Compared to last year at this time, are you up or down?

If it’s up, well done! You’re getting focused.

If it’s down, consider how you handle a vehicle when it is brought in. Do you have a solid inspection plan based on the client’s needs and how it is used? Do you know the client’s expectations for that vehicle?

Your objective in a maintenance shop for the average consumer vehicle is a minimum of 2.5 billed hours per work order. If you’re a wholesale tire shop that also offers maintenance and repair, your average should be in the area of 1.4 hours per work-order, including the wholesale invoices.

Slow down and look at your shop processes.

2. Revue the shop’s gross profit in each revenue category. Are you in step with your supplier? Does 85% or more of your aftermarket purchases go to a single competent jobber? In the commodity business, volume and cash counts. If you make them a trusted supplier and offer full payment each month, they’ll be in a position to offer great value to your business. That’s only going to help your gross profit and bottom line.

Cost of products is not the only thing that creates profit in your business. Your parts cost is less important today than it used to be. Now there are other issues to be concerned about. Shop efficiency, business client relationships, gross profit mix, and cash management drive the real profit in today’s business environment. A good supplier can assist you on all of these items. But a healthy business relationship must be in place first. All relationships must be a win-win. One-sided relationships do not last.

3. Re-visit your current labour rates. You should have a minimum of three posted rates in place. The maintenance/mechanical rate should be at least 4.5 times your top maintenance/mechanical technician’s hourly wage. The diagnostic rate should be at least 5.35 times the top diagnostic technician’s hourly wage. And a reflash rate should be a minimum of 6.0 times the top technician’s basic hourly wage.

A more accurate way to establish labour rates is to work off the shop’s total cost per billed hour. A very efficient shop can have a competitive labour rate in all three categories and still pay the highest wages in the marketplace.

Review your menu pricing items to ensure that the labour component is properly reflected in the price.

4. Examine the revenue mix of aftermarket parts to dealer parts. If you’re average, you will be about 80% aftermarket and 20% dealer. If you are, say, 75:25 aftermarket vs dealer, there’s a good chance your shop works on newer vehicles. Your rates must reflect the knowledge and equipment required to operate at this level. If you are 90:10, you are probably working on a lot of older vehicles. You should be examining your marketing strategy to secure a better balance of clientele who are looking for a high level of quality and service.
5. Check to see if your oil, tires, batteries, and parts inventory are turning over optimally. Carrying stock that does not turn over, stifles useable gross profit dollars and net income. Review your turnover rates in each category to ensure they’re hitting the guidelines you and your coach have set.
6. Finally, examine the perception your shop is sending out to the marketplace. Stand across the street for 15 minutes with a clipboard and paper. Ask yourself what would make a newcomer to town want to pull into your parking lot, and put their precious vehicle in your care.

Everyone is looking for someone they can trust. Are you that someone? What makes you stand out? What would entice someone to give your shop a try? Do you send out a professional vibe? Or are you just another garage?

Perception is everything. Attract new customers with curb appeal, and keep them with competency and professionalism to turn them into loyal clients.

People will gladly pay for a high level of quality and service.

The year will soon be drawing to a close. We’re past the halfway mark. Review these items so you can earn the results you wanted to achieve this year.

Slow down… get focused. Those are the best four words to concentrate on over the next few months.

Bob Greenwood is an Accredited Master Automotive Manager (AMAM) who offers personal business coaching and ongoing management training for aftermarket shops, focusing on building net income. He can be reached at 1-800-267-5497 or greenwood@aaec.ca.

The post Greenwood’s Garage: How’s your year going? appeared first on Auto Service World.

By Lindsey Bakker

The closing of The Ontario College of Trades could actually prove to be a great opportunity for the auto repair industry.

Until now we’ve been lumped in with a lot of trades whose challenges are very different from ours. What if we chose to self-regulate, getting rid of a layer of government bureaucracy, and claiming the millions of our dollars that we’ve paid over the years – money that is now just sitting in investment accounts.

The Ontario College of Trades has amassed over $40 million since its inception. Auto technicians contributed an estimated at 21% – about $8.5 million. Add in the other Motive Power trades (truck and bus techs, auto body techs) and it is closer 37% — about $14.9 million.

Working together with those related trades, or going it alone, we could accomplish a lot!

There are many ways that we could use this money and population size to help Motive Power trades in Ontario.

Investing in ourselves: We could use that money to invest in our future. We could buy up-to-date equipment for high school auto mechanic programs and regional trade schools. This money will allow school boards and trade schools to buy up to date technology such as tools, equipment, vehicles and educational material. If want to ensure we get good apprentices and future journeypersons we need to invest in them.

Advocacy: Some trades, like construction, have powerful lobby forces moving their agenda in Ontario. Motive Power trades have none. We need someone to advocate on our behalf for things like fair provincial and federal funding, tax law change that allows us to claim the cost of tools and education, employment insurance reforms that guarantee benefits after the first week of trade school, funding to help apprentices afford trade school, government transparency on trade data, and access to new technology for trades schools.

Industry promotion: We need new workers, and young people need good jobs. Let’s start bragging about what we can offer talented new technicians: lots of employment opportunities in a constantly changing high-tech trade that rewards continuous learning and self-motivation. We play an important role in society, keeping families safe and freight flowing on public roads. We need to educate the general public about the value of a healthy repair and maintenance industries. Full employment keeps motorist costs down and ensures they have a choice of where to get their vehicles fixed.

Benefits: Let’s capitalize on our buying power to save money on everything from cell phones and insurance to hotel rooms, car rentals, and restaurants.

Sustainability: We must look at ways to be able to sustain and not deplete monies we have in reserve. We can do this by corporate sponsorship, government funding, claiming investment into high schools and trade schools.

Representation: We could set up a registered, not-for-profit organization that takes direction from its members, working on behalf of the trades, and being accountable to us for its efforts to improve the industry.

It’s time to stand up for ourselves and advocate for our share of the money OCOT collected from us. Let’s put our own house in order and stop expecting the government to do it for us!

Lindsey Bakker is 310s,310t certified with 30 years of experience. He’s also the owner of Lindsey’s Tire and Auto Centre in Kingston, Ont. You can reach him at lbakker3@cogeco.ca.

The post COMMENTARY: How should OCOT money be spent? appeared first on Auto Service World.

Service Notes
By Allan Janssen

I’m old enough to remember when Billy Joel was relevant.

In the late 1970s the music world was abuzz with talk about “the new wave” of music emanating largely from the U.K., which had the ethics of punk music without the anger or nihilism. It was taking the airwaves by storm.

Billy Joel, rooted in a more traditional world, observed, “Everyone’s talking about the new sound. Funny, but it’s still rock and roll to me.”

That song comes to mind now, as I contemplate what has been dubbed “The New Retail.”

The aftermarket is trying to get its collective head around new concepts of selling to modern consumers, and you can’t go to an automotive conference these days without hearing multiple takes on The New Retail.

According to a recent report by consulting firm Roland Berger, commissioned by the Automotive Aftermarket Suppliers Association, we need to prepare for a retail revolution that starts with developing an omnichannel strategy. With that firmly in place, we can develop effective online-to-offline (o2o) model, which will lure potential customers from their online research into physical stores where they ultimately make their purchases.

‘The New Retail’ integrates
 online searches, offline
 shopping, modern
 technology, and
 cutting-edge logistics.

You can see how this would be key for traditional jobbers.

The Roland Berger report says that in order to compete with new digital-only competitors, suppliers need to achieve competence in digital marketing, consistent pricing strategies, effective fulfillment options, and a thorough appreciation of customer demographics and preferences.

But as I said, The New Retail does not suffer from a paucity of analysis – much of it conflicting.

According to Michael Zakkour, vice president of Asia strategy at Tompkins International, the West has become “stuck” in omnichannel marketing, while Asian companies have already moved on to unichannel marketing, which creates an even more integrated consumer-first ecosystem.

“Omnichannel is a stepping stone to New Retail,” he writes in his new book, The New Retail: Born in China, Going Global. “China is five steps ahead of the rest of the world on retail, consumption and technology, and how to merge them.”

So for you marketing nerds out there, there is certainly a great deal to process about the retail renaissance that is rewriting everything you thought you knew about selling goods and services. There are new questions to ask, and previously unseen needs to fill. Everything is changing.

But is it really?

Technologies come and go, but human sensibilities tend to stay static. And I would suggest that selling is selling. Successful retail marketing – of the new or old variety – simply means connecting customers with the goods and services they want.

In our business, it boils down to getting the right part to the right place at the right time. It’s that simple. And that complicated.

As Billy Joel would say, “It may be the next phase, new wave, dance craze… but anyways, it’s still rock and roll to me.”

I look forward to your thoughts. You can reach me at allan@newcom.ca

The post COMMENTARY: Grappling with New Retail Models appeared first on Auto Service World.

By Allan Janssen

In 2016, computer scientist Geoffrey Hinton declared that, with the rise of artificial intelligence, radiologists would soon find themselves out of a job.

In fact, he gave them five or 10 useful years remaining. His call to the medical community? Stop training them right now! He caused quite a stir in radiology departments around the world.

We’ll have to wait a few years yet to see if his prediction is coming true, but Eric Topol, for one, isn’t buying it.

Topol is a renowned cardiologist, and one of top 10 most-cited medical researchers in the world. More to the point, he is the author of several books, including most recently Deep Medicine: How Artificial Intelligence Can Make Health Care Human Again.

He would admit that the idea of putting medical A.I. to work in hospitals makes sense given the brute power and speed of its calculations. But computers are not perfect, and they are unable to understand or imitate basic human sensitivities.

“Radiologists are still needed to provide oversight because you don’t want to trust an algorithm before undergoing a major operation,” Topol said in recent interview. “Or consider a diagnosis of cancer. You need to have that looked at. Algorithms can have a glitch. They can have malware. They need somebody – especially when it’s an important call – to oversee it.”

The radiologist, he says, is a gatekeeper against unnecessary tests and unlikely diagnoses. They see things a machine can’t see, possess context the computer can’t grasp, and can talk directly to patients, offering much needed perspective and personal interaction.

“They have a lot of wisdom to impart,” he says.

Now, before you start looking to see if you’ve picked up the wrong magazine by mistake, let me explain why this observation is pertinent to the automotive repair world.

Much is made of the new – and seemingly miraculous – capabilities of modern vehicles, with their sensors, modules, datalinks, and software. Increasing telematic options are enabling new communication and over-the-air updates. We are headed to a world of diagnostic transparency.

Does that spell the end of the road for technicians? I don’t believe it will.

With hundreds of millions of drivers in North America, all of them clinging to the notion of personal mobility, I believe technicians will become even more critical.

We have known for years that the most successful technicians are those who keep abreast of rapidly advancing vehicle technology. Troubleshooting diagnosticians have an incredible skill that transcends the brute force of computing.

Even if we get to the point where artificial intelligence can scan vehicles in the blink of an eye, perform exhaustive tests, and review data with great precision, we will need the technician to start the process, direct the investigation, plug the right connectors into the correct data ports, and explain the problem to an anxious driver. The ones who can stand in the growing gap between carmakers and car drivers will be increasingly valuable.

Far from being sidelined by technology, I believe technicians will see their roles altered and enhanced.

You can reach me at allan@newcom.ca.

The post Commentary: Standing in the Gap appeared first on Auto Service World.

By Doug Hoy

I meet my fair share of shop owners who have a stick-with-what-works kind of attitude. They’ve had success in the past, and they feel that the way they do things is the best way. There’s no reason to change things up.

I fear that those shops will fall by the wayside if don’t look for new ways to accommodate their customers.

To achieve success in this industry, we must be willing to tweak our systems and procedures to reflect the constant change in technology.

For example, how do you communicate with your clients? Are you texting?

We had a situation recently where a customer refused to pay his invoice, saying that he had not authorized the repair. We had a signature authorizing the initial inspection and diagnosis, but the actual repair authorization was given over the phone. That might be standard procedure in our industry, but we had no way of proving that the customer had given verbal authorization.

I suppose we could start recording every phone conversation, but that would require us to inform clients ahead of time about the policy, and it feels a little intrusive. Maybe even distrustful.

We knew we needed a solution that would prevent this from happening again, so we created the authorization text. Immediately after the service advisor has received authorization over the phone, a text is sent out. It confirms that authorization was given and requires a reply – simply the word “yes” – to confirm the amount. This also serves as the customer’s agreement to the terms and conditions of the work order.

This may not be as good as a pen-to-paper signature, and it may prove to be problematic from a legal standpoint. But at the very least, it creates a digital paper trail. If there is a dispute, we have some evidence that authorization was given. In the case above, an authorization text could well have settled the dispute before it escalated.

We’ve had no pushback from customers over our authorization texts. It has become standard procedure around here. And its simplicity and effectiveness have even inspired us to use texting for other purposes. We have developed a great customer follow-up text. Sent out 30 minutes after clients pick up their vehicles, it thanks them for their visit, asks if their experience was a positive one, and provides a link to our Google page so they can leave a review. With two clicks, they’re able to provide a review. If we followed our usual systems and procedures properly, we’re confident that review will be a positive one.

We haven’t gotten rid of our follow-up phone calls because they offer a more personal touch. But texting is a more immediate tool, and one that a lot of clients prefer. It’s been a game changer for our business.

Shops need to embrace new systems and procedures. In a business like ours, we have to stay abreast of the latest technology. We can’t just stick with what worked years or decades ago. We have to ride the wave of change.

Doug Hoy is the owner of Highway 33 Autopro in Kelowna, B.C.

The post COMMENTARY: Texting to success appeared first on Auto Service World.

Speculation about the end of internal combustion engine (ICE) technologies is all over the news, as politicians and activists call for radical, almost overnight shifts in technology. But when you take the time to look at the practicalities of such proposals, a vastly different picture emerges.

In reality, ICE-based technologies will still be around for years to come. So, how can we work to ensure the cleanest, most efficient engine technologies and fuels are ready, available and in use around the world?

Allen Schaeffer, executive director of the Diesel Technology Forum offers some thought leadership on the subject.

Are We Near the End of the ICE (Internal Combustion Engine) Age?

By Allen Schaeffer

If you dare, flash back to October 1990 when rapper “Vanilla Ice” hit the Billboard charts.

His big hit “ICE, ICE, Baby” dominated the airways for a week… and then it was gone, a one-hit wonder.

But unlike the “ICE” of the 1990s, we can boldly predict that today’s ICE – the internal combustion engine powered by gasoline and diesel – isn’t vanishing anytime real soon. Reports of its pending demise in the popular media are greatly exaggerated.

Until the time when electrified mobility approaches significant scale, gas and diesel engines will continue to improve. Customers will demand it; manufacturers are invested in it; and society needs it to ensure continued incremental progress on cleaner air and lower CO2 emissions.

Need proof?

Here’s what thought leaders and leading manufacturers have to say on the topic:

“While Cummins has a vigorous electrification program under way, our other key message at IAA is that the diesel engine is not standing still. With our technical developments, we see diesel remaining as the primary source of power in the commercial vehicle sector for the foreseeable future.”

— Cummins, Tom Linebarger, Chairman and CEO

“We expect to see a mix of combustion engines and electric vehicles on the road for a long time to come, despite the current debate about diesel-powered passenger cars in particular, and the decline in new diesel vehicle registrations in Europe. This is because existing powertrain concepts can also play an important role in improving air quality and reducing CO2, especially since the wide-scale adoption of electromobility requires further substantial upfront investments in engineering and infrastructure. Viable diesel and spark-ignition engines that have hardly any effect on air quality even at inner-city air-pollution hotspots are now within reach.”

— Bosch, 2018 Annual Report

“We look forward to harnessing the power of both Caterpillar’s and Argonne’s industry-leading research expertise and world-class facilities to develop ground-breaking solutions for diesel engine design.” The organizations plan to build and test heavy-duty diesel engines that reduce emissions and improve fuel economy.

— Caterpillar, Jon Anders, Principal Investigator and Senior Engineering Specialist, Innovation & Technology Development Division, March 2019

“Volvo Group acknowledges that there is no single fuel that can meet all needs. Conventional diesel fuel, with increasing renewable or synthetic content, will likely remain the dominant fuel for most types of commercial transport for many years to come.”

— Volvo Group, 2018 Annual Report

“We will continue to build diesel engines. But they will be even cleaner and feature more smart technologies. And we will devote more of our energy to meeting ever-growing demands for hybrid solutions, the electrification of drive systems, and the use of alternative fuels and gas power. With our Green and High-Tech program, we have shown that we have a progressive vision on how to meet the huge challenges of the energy turnaround and new trends in mobility.”

— Rolls Royce Power Systems-MTU, Andreas Schell, Chairman of the Board

“Isuzu and Cummins recognize the advanced diesel engine is, and will continue to be, an important power choice for global customers in commercial vehicle and industrial applications. This is especially true in developed countries where power sources are used for high-intensity operations, as well as in emerging countries where social infrastructure conditions are severe.”

— Isuzu, Masanori Katayama, President and Representative Director, announcing power-source partnership agreement with Cummins, May 2019

“Actually for the diesel engines, we are also continuously working on that in order to achieve the ideal diesel engine. Especially these days, SUVs are quite popular – that means vehicles are bigger and heavier, for those types of vehicles, in terms of reducing CO2, diesel engines still have the advantage… [we have] no plans to phase out diesel.”

— Mazda, Ichiro Hirose, Managing Executive Director of Powertrain Development

“Various projections for the U.S. suggest that by 2030, some 10 to 25 percent of vehicles might be electrified. The question then remains, what about the other 90 to 75 percent? And what about the large trucks and ships that run on diesel fuel? There are, as yet, no convincing electric options for those vehicles. That is why it is still so important to continue working on internal combustion engines and make them as clean and efficient as we can.”

— Massachusetts Institute of Technology, John Heywood, Professor of Mechanical Engineering

“Perkins is focusing on the third incarnation of diesel engines. Power 3.0 will see research and development focus on how to create an engine that is focused on sustainability, as well as capable of delivering more productivity while consuming less fuel. Power 3.0 is the next stage. The hybrids and electrics will be part of that story.”

— Perkins, Oliver Lythgoe, Product Concept Marketing

“I wouldn’t see the termination of internal combustion engines on the horizon. We are still working on the next generation of gasoline engines. They will become more fuel efficient. We will have 48-volt start-stop systems and mild-hybrid systems. There is still a lot of improvement going in there. But, on the other hand, the improvement — engine generation after engine generation — will be reduced because there’s just not much more [efficiency] in this. The low-hanging fruits are gone. In many countries, you don’t have renewable energy available. And then, if you make the counts, diesel is probably still the best option for a low CO2-emission mobility. We are just working on the next generation of diesel engines, becoming even cleaner now, with additional catalytic converters in the car, with additional effort on cleaning, and they become really clean now. We will have a market for these in Europe and many other places. Probably not here, because diesel here always was a niche on the passenger-car side. But also here, the bigger cars, the higher driving distances, diesel becomes more of a rational [choice]. When it comes to big SUVs, diesel still makes sense.”

— Volkswagen, Herbert Diess, CEO

“We expect diesels to survive for at least 20 more years and gasoline for at least 30 more years.”

— BMW, Klaus Froelich, BMW group Board Member

So what will keep ICE at the top of the transport charts for the foreseeable future? Continued gains in efficiency and lower emissions. Increased pairing with hybrid powertrains. Increasing use of advanced renewable fuels. All are factors that will contribute to diesel and gasoline engines playing a key role well into the future.

The Diesel Technology Forum is an educational non-profit, based out of metropolitan Washington, D.C.

www.dieselforum.org

The post COMMENTARY: Are we at the end of the I.C.E. Age? appeared first on Auto Service World.

By Allan Janssen

It is a pleasure for me to be at the front of Jobber News magazine. Jobbers and counterstaff who regularly read it may recognize me from the back of the book, where I have lately offered a closing thought to readers who made all the way to the end.

As a mere columnist, I left all the heavy lifting to Adam Malik who was the true editor of record. But now Adam has moved on to new pastures, leaving me to fill his metaphorical chair.

To those who don’t know me, I should explain that I am both new and old to the auto parts distribution industry.

I cut my teeth as the founding editor of Automotive Parts & Technology, which burst onto the scene in 1996 with the ambitious goal of covering both the jobber world and automotive service in Canada. Over the next five years, I got to know the parts business quite well, and counted jobbers as some of my most enthusiastic readers. But in 2001, AP&T (as it had come to be known) transformed itself into Canadian Technician, which focused almost entirely on the people who maintain and repair vehicles, rather than the ones who make sure all the right parts get to the right place at the right time.

Canadian Technician, and then CARS magazine (2004), kept me closely tied to automotive service providers, but I often found occasion to speak with jobbers. They were more than happy to offer their views on any number of subjects, and to dispense their particular version of trench wisdom.

I have found that in the aftermarket, you’re never too far from jobbers. In Canada their association is extremely active, professional, inclusive, and plugged in. Jobbers love to go to trade shows and industry conferences. They’re all about networking. They keep up with the latest technology developments, and they tend to organize a lot of training classes – both the technical and the management kind. The best of them seek out opportunities to crash ASP events, with the working philosophy that serving their customers starts with knowing the repair and service business and having a keen grasp on the issues shop owners face.

I expect that I will have no shortage of input from jobbers. Given my special connection to ASPs – your customers – I’d like to think our dialogue will be mutually beneficial.

In fact, on this matter I’ve already nailed my colours to the mast. In the last edition of Jobber News, I suggested we work together to create a round table where jobbers can brainstorm on ways to keep service and repair shops healthy. In the weeks since, I’ve received some helpful and positive response, and I’m looking forward to more. It’s fair to say I’m very eager to pursue this project.

If you missed that editorial, you can find it at www.autoserviceworld.com/features/help

Now, as when I first started writing about auto parts in 1996, I want to help build a bridge between the separate camps within the Canadian aftermarket – camps that are sometimes seen as being in opposition to one another, but which should, in fact, be working together.

I look forward to your thoughts. You can reach me at allan@newcom.ca

The post Jobbers… I would love to hear from you! appeared first on Auto Service World.

SERVICE NOTES  By Allan Janssen

For those out there who are curious about how a magazine like this gets made, it starts with coffee. A lot of it, close at hand, and strong.

Then there is rumination. Thoughts, like coffee, must percolate.

But the true secret sauce of a well-crafted magazine is conversation. In phone call after phone call, meeting after meeting, and conference after conference, the views of readers must be continually taken into consideration. These conversations form the backbone of the magazine. They give it a spine.

Some of the best conversations I’ve ever had were with John Norris, the executive director of Collision Industry Information Assistance. We would meet up at a local coffee shop and spend an entire afternoon recounting the latest news and what it meant for the aftermarket.

In his day job, John helped body shops chart a path through government regulations and the growing influence of the insurance industry. But more broadly speaking, he possessed a wealth of facts about a wide array of subjects, and he had strong, well-considered views to go with them.

He used a unique shorthand when he spoke. He would reduce the entire world of automotive service and repair, with the complexities of engine diagnostics, and the challenge of getting service information, to one word: “mechanical.” As in: “Mechanical needs to figure this out.” Or: “Mechanical needs a true champion.”

To call him a polarizing figure would not be overstating it.

John Norris died suddenly on May 28, creating a vacuum on the many boards he served, and in the industry in general.

I prepare this issue of CARS magazine without any last-minute counsel from John. But, in a way, it bears his strongest imprint yet.

In discussing my annual Shop of the Year story a few weeks before his death, I told him I had boiled the choice down to two. It would either be a long-established shop run by aftermarket veterans whose names would be familiar to many readers. Or it would be the complete opposite: a new shop under the visionary leadership of a pair of newcomers to the industry.

His answer was classic. “Which story does Mechanical most need to hear?”

He was right. That should be the motivation for everything that appears in the magazine. And so I made my decision. I’m going with the newcomers. I am unable to escape the feeling that the experiences of Donnie and Elaine Lysons, rank strangers to the aftermarket, might cause a stir of excitement and hopefulness in our industry.

They faced the challenge of building a business in an industry that is facing constant and fundamental change. Unburdened by legacy systems or outdated management ideas, they proceeded both humbly (as students) and boldly (as talented entrepreneurs). The shop they created is customer-focused,  maintenance-oriented, and thoroughly modern.

Lacombe Auto Service is the kind of shop my friend John would have loved to read about. He would have learned from them. And he would have offered them his help to them if they needed it.

Rest in peace, John. And congratulations, Donnie and Elaine.

You can reach me at allan@newcom.ca.

The post Commentary: Coffee and Conversation appeared first on Auto Service World.

By Allan Janssen

It is a pleasure for me to be at the front of Jobber News magazine. Jobbers and counterstaff who regularly read it may recognize me from the back of the book, where I have lately offered a closing thought to readers who made all the way to the end.

As a mere columnist, I left all the heavy lifting to Adam Malik who was the true editor of record. But now Adam has moved on to new pastures, leaving me to fill his metaphorical chair.

To those who don’t know me, I should explain that I am both new and old to the auto parts distribution industry.

I cut my teeth as the founding editor of Automotive Parts & Technology, which burst onto the scene in 1996 with the ambitious goal of covering both the jobber world and automotive service in Canada. Over the next five years, I got to know the parts business quite well, and counted jobbers as some of my most enthusiastic readers. But in 2001, AP&T (as it had come to be known) transformed itself into Canadian Technician, which focused almost entirely on the people who maintain and repair vehicles, rather than the ones who make sure all the right parts get to the right place at the right time.

Canadian Technician, and then CARS magazine (2004), kept me closely tied to automotive service providers, but I often found occasion to speak with jobbers. They were more than happy to offer their views on any number of subjects, and to dispense their particular version of trench wisdom.

I have found that in the aftermarket, you’re never too far from jobbers. In Canada their association is extremely active, professional, inclusive, and plugged in. Jobbers love to go to trade shows and industry conferences. They’re all about networking. They keep up with the latest technology developments, and they tend to organize a lot of training classes – both the technical and the management kind. The best of them seek out opportunities to crash ASP events, with the working philosophy that serving their customers starts with knowing the repair and service business and having a keen grasp on the issues shop owners face.

I expect that I will have no shortage of input from jobbers. Given my special connection to ASPs – your customers – I’d like to think our dialogue will be mutually beneficial.

In fact, on this matter I’ve already nailed my colours to the mast. In the last edition of Jobber News, I suggested we work together to create a round table where jobbers can brainstorm on ways to keep service and repair shops healthy. In the weeks since, I’ve received some helpful and positive response, and I’m looking forward to more. It’s fair to say I’m very eager to pursue this project.

If you missed that editorial, you can find it at www.autoserviceworld.com/features/help

Now, as when I first started writing about auto parts in 1996, I want to help build a bridge between the separate camps within the Canadian aftermarket – camps that are sometimes seen as being in opposition to one another, but which should, in fact, be working together.

I look forward to your thoughts. You can reach me at allan@newcom.ca

The post Jobbers… I would love to hear from you! appeared first on Auto Service World.

SERVICE NOTES  By Allan Janssen

For those out there who are curious about how a magazine like this gets made, it starts with coffee. A lot of it, close at hand, and strong.

Then there is rumination. Thoughts, like coffee, must percolate.

But the true secret sauce of a well-crafted magazine is conversation. In phone call after phone call, meeting after meeting, and conference after conference, the views of readers must be continually taken into consideration. These conversations form the backbone of the magazine. They give it a spine.

Some of the best conversations I’ve ever had were with John Norris, the executive director of Collision Industry Information Assistance. We would meet up at a local coffee shop and spend an entire afternoon recounting the latest news and what it meant for the aftermarket.

In his day job, John helped body shops chart a path through government regulations and the growing influence of the insurance industry. But more broadly speaking, he possessed a wealth of facts about a wide array of subjects, and he had strong, well-considered views to go with them.

He used a unique shorthand when he spoke. He would reduce the entire world of automotive service and repair, with the complexities of engine diagnostics, and the challenge of getting service information, to one word: “mechanical.” As in: “Mechanical needs to figure this out.” Or: “Mechanical needs a true champion.”

To call him a polarizing figure would not be overstating it.

John Norris died suddenly on May 28, creating a vacuum on the many boards he served, and in the industry in general.

I prepare this issue of CARS magazine without any last-minute counsel from John. But, in a way, it bears his strongest imprint yet.

In discussing my annual Shop of the Year story a few weeks before his death, I told him I had boiled the choice down to two. It would either be a long-established shop run by aftermarket veterans whose names would be familiar to many readers. Or it would be the complete opposite: a new shop under the visionary leadership of a pair of newcomers to the industry.

His answer was classic. “Which story does Mechanical most need to hear?”

He was right. That should be the motivation for everything that appears in the magazine. And so I made my decision. I’m going with the newcomers. I am unable to escape the feeling that the experiences of Donnie and Elaine Lysons, rank strangers to the aftermarket, might cause a stir of excitement and hopefulness in our industry.

They faced the challenge of building a business in an industry that is facing constant and fundamental change. Unburdened by legacy systems or outdated management ideas, they proceeded both humbly (as students) and boldly (as talented entrepreneurs). The shop they created is customer-focused,  maintenance-oriented, and thoroughly modern.

Lacombe Auto Service is the kind of shop my friend John would have loved to read about. He would have learned from them. And he would have offered them his help to them if they needed it.

Rest in peace, John. And congratulations, Donnie and Elaine.

You can reach me at allan@newcom.ca.

The post COMMENTARY: Coffee and Conversation appeared first on Auto Service World.