Thursday, February 12, 2009

Thanks Mom, Mr. Fruth, Mr. President, and Mr. Anonymous

This comment from Mr. Anonymous, regarding my earlier blogpost on marketing in a recession led to today's thoughts: Boy (or girl) do I ever agree with you on the strategy for operating a business during a recession. As you say, what I have seen is reduced service and increases in prices. If I was CEO of a consumer product company I would announce a reduction in prices to break-even and push my employees to slobber all over my customers with appreciation. I would commit to doing this for a year and publicize the fact that we are all "in this together" and that this is our way of showing that we care about our customers. Then stand back and watch the doors get knocked down. I would count on people remembering what we did when they needed it most and expect to keep them for years to come. If not I lost a year of profit but I bet that would be all that I lost. I would point this out to my shareholders and suggest that their investment would be enhanced by our action.

I just spent several hours a day, over the past few days, writing thank you notes to many of the people who have spent their company's money with my company, by advertising in my magazines. Thank you notes are my way of "slobbering all over my customers with appreciation". I can't visit them all personally, but I can certainly take a little bit of my time to really thank them. (Confidential to Mark and Jay - yes, you will be receiving one, even though we e-mail regularly, and speak on the phone occasionally.)

Many times we look at business transactions as just that - two cold, unexpressive, simple words "business transactions". But any good business transaction should be much more. (I'm not talking about paying bills or accepting a fee, I'm talking more about the sales experience within a business transaction.)

In my own experience, I have found the majority of my business transactions to be personal in nature. When I sold tools for a living, I made myself get to know my customers on a more personal level. Sure, I loved and believed in my product, but I knew I would never get anyone else to feel the same, unless I could discover what "made them tick". I felt everyone "needed" my tools, because they performed a necessary function, and they could help my distributor's profitability, etc. But there are many times when appealing to someone's basic business sense is not enough, and filling a basic need is not enough. How many times have you had the conversation with a buyer that begins, "you can't pay bills with margin, you pay bills with dollars...." A simple appeal to business sense does not always work.

And in tough times, sometimes a personal relationship makes the difference between a deal or no deal. A lot of times we rely on our sales reps to have these relationships. It is equally as important that strong relationships exist between people amongst all the layers of your business - whether it's a counter person, customer service, sales..... anyone who speaks to your customer needs to have a certain level of personality that appeals to the customer. It's part of the "service" part of any job.


I worked for a small company for a number of years and I credit a portion of my success to my daily reliance on the following principles, principles that were developed by our President, and honed by his staff. They were an important part of our culture.

1 - always treat the customer in front of you like he's the only customer you've ever had, and ever will have

2 - never assume you'll have a customer for life,

3 - always work hard to make doing business very easy for the customer and

4 - never think you're first in anyone's book, because if you're number 2 - you'll always try harder.


I agree with Mr. Anonymous, (paraphrasing him) treat customers right and they'll remember you when they can. To some degree, I think if we all thought of ourselves as being in the business of selling a commodity, as individuals, we would all work a little harder, a little more effectively, to personalize the business transaction. And ultimately, I think it would make for a more interesting and rewarding career.

So - I can't personally visit everyone I want to thank. But I'll start with Mom - Mom, thanks for making sure I understood at a young age the value of a thank you note. Mr. Fruth, thanks for being so tough on me when I struggled with cursive writing. Because of you I have a deep love of learning, and also pretty decent handwriting. Thanks Mr. President, for laying down a good foundation of best business practices for me. And finally, thank you Mr. Anonymous, for reminding us that we are all in this together, and we better start acting like it!

And thank you readers! I appreciate all your comments and look forward to hearing from you.

And every now and then, I'm going to close with a picture of my dumb dog, Rascal.







Wednesday, February 11, 2009

John Dow Wins a Key Supplier Award from Ford Rotunda

I missed this last month, but thought you'd like to know! At the 2009 NADA Show, held in New Orleans, John Dow Industries received the Ford Rotunda Key Supplier Award for the sixth straight year.

The Key Supplier Award is given for meeting standards that ensure exemplary service and support to the Rotunda Tool & Equipment Program in the areas of OE Support, Sales Support, Business Alignment, Dealer Service Satisfaction, Supply Chain Management, Product Management, and Marketing Management. This is no minor award, and to achieve it six years in a row is phenomenal.

JohnDow Industries is based in Barberton, Ohio and manufactures a variety of automotive shop equipment and supplies including portable fuel and handling, used oil and fluid handling, vehicle exhaust extraction, and automotive service equipment and supplies. Their brands include Fuel Chief, Crew Chief, EuroVent, JohnDow and Shop RX.

Pictured below is Mark Pfleeger, JDI VP of Sales, accepting the award from Pete Bandowski (Ford TSO Sales & Marketing Manager) and Jeff Sampson, National Sales Manager, Rotunda GSE.
(It is rumored that the two Ford guys were late for their after-show jobs, waiting tables at the nearby, newly renovated Galatoire's on Bourbon Street. - not confirmed)
.

Monday, February 9, 2009

MACS - Mobile Air Conditioning Society in Dallas

Just back from the MACS Convention, held last Thursday through Saturday at the beautiful Hilton Anatole in Dallas, TX. There appeared to be more exhibitors this year than last year (when it was held in Orlando, FL). Probably has something to do with Dallas being the hometown for MACS headquarters. I also learned that the majority of the mobile air conditioning members (or the industry in general) got their start in the state of Texas.

It also felt like there were more attendees walking the aisles, though I did not get a final count from Marion Posen, with MACS.

Good news: There were a decent amount of new products on the show floor. This generally bodes well for sales success in my experience. Show 'em to sell 'em!

General comments from the exhibitors was positive. Most acknowledged the end of a bad year and dismal January, but were looking forward to better results in February and March, with the second quarter seeing a real (though not dramatic) turnaround.

Here are some of the highlights in photos:

The Welcome Reception kicked off the conference on Thursday evening, with live music played on electric guitar and harp. I did not take this at the beginning of the convention, but more towards the end - that's why it's a little sparsely populated. I was anxious to get to the show on time and forgot to take an "opening" photo.

Atco's booth.


Tracerline's new products were spelled out on this wall chart.



This is a pretty neat air conditioning service system from RTI. This is a private brand model they made for Navistar, but they have the same equipment available in RTI's brand. This particular model has all kinds of bells and whistles - including computer hookup and printout.




Ranshu's booth - don't they look pretty in Pink? They gave up the pink llama, and they gave up the pink cockatiel, this year they added a pink gorilla.



Bright Solutions brought along some new 12 oz. plunger tubes, making a messy job tidier and easier. They launched their new Hybrid PAG. PAG oil is considered better than POE oil for A/C compressors, since it has better lubricity and solubility with R-134a. However, since PAGs are conductive, you shouldn't use them in a hybrid system (unless you're up for a shocking experience). Bright Solution says their new hybrid PAG has the lubricity and solubility of a PAG, but with the low conductivity of a POE. Good stuff for the aftermarket!


A 1967 Jaguar Mark Z



Jaguar Clubs of North America National Champion in 2007 and 2008. It is a beautiful car.



Nick Bush, VP of Sales for Cliplight.



RedDot was well represented.



This was the most beautiful car on the show floor, but I forget what it is. It was built on a Acura chassis, and has more than 450 hp. It was at the show to demonstrate that a car owner can be "green" and still have a sweet ride. The dealership that loaned it out had put a new $1,000 exchanger in it that worked with the combustion to turn gas emissions into hydrogen, thereby emitting ZERO carbons or pollutants into the atmosphere. Very cool. He wouldn't let me test drive it.







Rascal. He wasn't at the show, but just looked particularly stupid this afternoon and had to share.




Tuesday, February 3, 2009

Who Drove the Excalibur?


I can't verify it, but I believe the people who drove the Excalibur to Florida from Canada resembled this couple. (Ok, maybe not, since they're decades apart in time.)
For more info on the Excalibur, refer to my post from 1/29/09, Photos from a recent trip to Florida.
The Excalibur began as an old-fashioned touring car with the Studebaker company in 1963. After Studebaker went out of business, Brooks Stevens brought it back to life name of SS Automobiles Inc, where the Excalibur was manufactured for another 24 years.
Confidential to John McLane - this is the image that came to my mind. Close to yours or far apart?

More of Automotive Marketing 101: What do I do when there's a RECESSION?

I've gone over several key points of marketing during a recession, but I just read an article by Dave Caracci, former shop technician, shop owner, Bosch, ROL and DANA marketing guy, etc, with about 50 years experience in sales and marketing. He is currently Director of the AAIA Car Care Professionals Network and is Chairman of the University of the Aftermarket Foundation. I've known him for several years and I think he's a pretty straight forward guy.

So, why am I telling you this and why should you care? We recently asked his opinion about the best practices a business should employ during a recession.

Here is his (slightly edited) response: "Because I have learned one absolute about recessions, and for those of us who keep this absolute in mind and act on it, this recession can help us succeed. For the smart, hard-working business person a recession is the best time to grow your business. Let me explain.

In a recession, what do most business people do? Cut budgets, cut expenses and reduce service. When your local new car dealership service department does the above, disappointing their good customers, YOU can grow your business. By making sure the dealerships customers think of you as the best and most personal alternative to that new car guy who just let them down. Promote your business by targeting the dealerships customers now, during the recession and when the good times bounce back, you will have a lot more market share. Instead of cutting expenses to the point of cutting sales, you will have grown your business during this recession. Of course, when business is down, we should all watch expenses as carefully as possible. If you can eliminate or reduce an expense, you should. But, NEVER reduce an expense that might reduce sales. That move is the beginning of the end. I know you’ll agree, because I know that you are seeing companies do this already. For example, how about the parts supplier that cuts expenses to the point that they can’t ship you what you need, when you need it? What do you do for the part? You go to his competitor! In fact, I’ll bet you have suppliers calling on you right now that are saying “Hey, give me a chance at your business when the other guy lets you down.” Smart guys! Instead of cutting and hiding until the recession ends, they are growing their business. How about the check-out lane at Wal-Mart? I stopped going there for anything, after they cut so many check-out lanes that it took three times longer to check out than it did to find what I needed to begin with. I don’t care how cheap they price stuff, I’m not going back in there. Bet you’ve heard that same comment about the service writers at your local dealership. Sound like an opportunity to you?
Now for the point of this entire article: We all keep hearing about dealerships closing or at least being in trouble. They may be trying to keep their service business by cutting prices, but if the service stinks or the dealership closes, what good was a cheap price? Many independents are happily waiting for ‘some’ of the dealership customers to drive into their shops. But, for the smart independent repair shops, this recession is the opportunity of a lifetime to grow your business at the expense of the new car dealers. Let’s go after the vehicle owners who have been using that car dealership for service, before the vehicle owner chooses a shop other than yours. I’ll bet you are up for this market share attack.
I’ll bet you are ready to grow your business during this recession instead of cutting and running. But how do you do it? What kind of marketing methods and tools can you use?
Some of you are already doing it. Some of you have already begun to take market share from failing or weakened car dealer service bays. How about helping each other? How about sharing promotion or sales ideas with the other shop owners via the TechShop blog? Share with us what you are doing to take business away from the car dealer. If we act now by sharing marketing and sales ideas, you can all grow your business, at the expense of the new car dealer, during this recession,
It’s your move."

One of Dave's comments that hits home to me right now is "when business is down we should all watch expenses....but NEVER reduce an expense that might result in sales."

Over the past several months, I have heard from many manufacturers AND distributors about the cost-cutting measures being taken to improve profitability. Cutting hours, cutting hourly workers pay, paycuts in general, reducing benefits, reducing bonuses. MANY of these include letting some salespeople go (translation: "Firing sales people"). Here's my question, "didn't they contribute during good times? Isn't the job of a sales person "to increase sales"? A sales person is frequently the most critical part of any sales process. Without sales people, what are you doing to increase sales? (Cuz I can tell you - you ain't advertising in the trade press more than you used to.....)

Also, don't you think the time to evaluate the effectiveness of your salespeople is during good times, so you'll know who to keep when times get tough? I just get the feeling there is a lot of knee-jerk reactionism going around our industry, though I have to say that when you hear numbers like 4,000 and 6,000 people let go from one company, I hope there's been significant thinking done.

One of my former bosses liked to say that anyone not directly involved with manufacturing our product was "overhead" - I guess that was a nice way to say I was expendable. I would disagree, perhaps I was personally expendable, but the position I filled was not. I was there to help create new sales from new markets and generate additional sales from existing customers. My job was to bring the buyers to the sellers. That type of position is still critical to the success of any aftermarket company in business today. Even though we have additional methods of communication and ways to reach the customer that don't always involve a personal touch, there is still a human element involved. People like to buy from people. I would argue that the personal touch is more important today than every before - so think twice before you let your next best salesperson go.

I think I'm starting to ramble a bit, so I should sign off. This happens when I start with someone else's idea and try to mold mine around it. But I thought Dave made some good points and wanted to share them.

In other news, I leave Thursday for the MACS (Mobile Air Conditioning Society) convention in Dallas, TX. Will keep you posted on new products and industry news early next week, upon my return.

If we post any of your comments in the blog, specifically ways you are increasing market share, or taking it away from dealerships, we may print them in the April issue of TechShop magazine as well.

Thursday, January 29, 2009

Photos from a recent trip to Florida

In between business trips to San Antonio for the Mac Tool Fair, Walla Walla, WA for Tomorrow's Technician and Delphi, and an upcoming trip to Dallas, TX for the MACS Conference, I was able to sandwich in a few days for r&r in Orlando, FL.

Just kidding, this isn't Florida. It's Ohio. - this is the snow cave my kids built in my front yard. It reaches eight feet tall at its highest point. Came home to lots of new snow. This is Florida two days ago.

This is an Excalibur that someone drove from Calgary, Canada to Cocoa Beach, FL. As if that is not a crazy feat by itself, check out the next photo.


Apparently they felt the need to drag a big ole trailer with them. This car must have a 12-cylinder engine.

More of the beach.


Bikes on the dunes. That's probably the best way to travel in Cocoa.


Friday, January 23, 2009

Mac Tool Fair - Part Two

New supplier to Mac Tools, this is Harold Cody of Midwest Tool and Cutlery Company explaining some of the finer points of his snips.
Here's a couple shots of the colorful Mac Tools UK guys: I'm not sure which one is who.....but according to the head guy... There's Richard McGarvey, Marty "Shark Bite" Eatch, Roy "Gay Boy" Farmer, Paul "the Horse" Bloxha, and Slim Matt. Apparently there are some who prefer to remain un-named to protect their innocence.

Zachary Parker of Redline Detection, brought us up to speed on his products, which use smoke to identify exhaust and vacuum leaks.



Channellock's product offering.


Multi-Function tool with LED (but I can't see where the LED is located)


The inimitable and highly promotable Dan Brass, looking quite Veep-ish.

Metric Tap and Die Set


Famous designer, Chip Foose, signing autographs. The line to his table went on forever.


New Mac Tools Battery Charger






More 38 Special

Happy Mac Tool Distributors enjoying 38 Special

One of the buildings at the Alamo. It was built in 1936 and houses a gift shop and museum.




The walkway into the Alamo compound.


Our intrepid editor of TechShop, Jennifer McMullen. Looks like she's thinking about editorial for next month's issue!