Ask, Nicely

How do you introduce new technology to your franchisees? Recently McDonald's announced they were going to start selling premium coffee/cappuccino for about 50 cents less than Starbucks. The catch? Their franchisees had to buy the cappuccino machines. This adds financial pain to the adoption of new technology. And, this announcement got me thinking, If you work with franchisess, how do you introduce new technology to them? Sometimes a parent corporation will decide to adopt some new innovation - perhaps a computerized order-entry program. Do you provide the technology at no charge to your franchisess, knowing the savings will come in faster order processing and improved customer service, or do you require your franchisess to shoulder the burden of the cost? Many times franchisees worry that the installation of new technology could disrupt their business, require a major commitment to training, prove unreliable, or worst of all, cost them customers. How do you overcome this reluctance?
Let's take this out of the franchise situation, and instead, put your Tool SalesPerson hat on. How do you overcome reluctance on the part of your customer to adopt new technology? Maybe someone has read about a great new scanner that utilizes never-before-seen technology. They're interested, but frankly, a little intimidated. Here's how you can overcome their reluctance to buy:
1 - educate yourself. Make sure you understand the key benefits this new tool will provide. Make sure you can explain them.
2 - keep it simple. Don't try to explain all the bells and whistles at once. Stick to the highlights.
3 - allow your customer to hold the tool. While they are holding the tool, tell them how easy it is to use, and what jobs it does faster or easier than the tool they use now.
4 - Still not sold? Ask them if they'd like to take it for a "test-drive". Teach them the basics of how to use it, then offer to let them keep it for a week. If, after a week, they don't want it, you take it back. More then likely, the test-drive will seal the deal and you'll sell the tool.
Another way to sell more tools is to create disciples. If you can sell something to the skeptic, sometimes you can turn that person into your best spokesperson.
In the end, of course, the way you sell tools is - you ask for the order.

Technician Customer Friend Professional

I read a lot of business-to-business magazines, and I recently came across an article describing technicians and their approaches to a business transaction. It was basically a description of how tool dealers sell to technicians and it ran through the Mr. This and Mr. That description. And it got me thinking about our business. We all know people who scrutinize a bill before they pay it (My father-in-law had it down to a science when we would go to restaurants. He would actually bring out his abacus and do the math for the 15% tip while we all shrank in our seats...)
But my question is this - do we really want to categorize our customers into smarmy categories based on how they pay? I don't think so. Instead, let's recognize the professional technician for who he is -

1 - generally he or she is a professional who has had some life experience and some formal technical education that led him to this spot as our customer (more than 90% of pro techs are men, so I'll just use the "he" here..)
2 - sometimes they have a bachelors or masters degree
3 - he makes his living using his mind first, and his hands second
4 - he buys a lot of tools over the lifetime of his career
5 - he is typically a family person - if not married yet, he will be.
6 - he truly enjoys what he does for a living
7 - he can be a generalist AND a specialist
8 - if he is just starting out, there is a good chance he will be in this business more than 20 years
9 - many technicians move on/up to own their own business
10 - many techs bring their family members into the business

Now, how do you label a technician who embodies some or all of these points? The only thing I can call him is a customer for life who deserves my respect. Perhaps over the lifetime of our relationship, I could also call him or her, friend.

How Do We Inspire People to Join Our Industry?

When you started in this business, did you think you'd stick around for a while and make a career out of it, or was it just something to pass a couple of years time, so you'd have something on your resume beyond flippin burgers and mowing lawns? Well, I thought I'd do the tool thing for a couple of years to help pay for grad school. But after a year of a full-time job AND going to grad school full-time, I knew something had to give or someone would be picking parts of my grey matter off my desktop and ceiling. Sadly, that career I desired in some glamorous industry did not immediately appear, so in order to stay fed, I dropped the full-time institutionalized education, kept the job, and began my career and informal education in the automotive aftermarket. And I never quit learning.

And now, with more than 20 years into this biz, I can honestly say I love this industry. The people are great, my current job is awesome, life is good. I hope you can say the same from your personal perspective.

So how do we bring more wonderful people (like ourselves, or just a little bit different) into this industry? One way, is to bring them in at a young age, train them your way, and hope for the best. But where do you go to recruit?

Well, my easy answer would be - of course - you should just advertise in Tomorrow's Technician magazine and thousands of technicians would be knocking down your door.
But instead, I'm not going to ask for your ad monies - that's right, not today anyway.

Instead, I would encourage you to go to our newly redesigned website, www.tomorrowstechnician.com and check out the "careers" tab. If you have a job opening at your workplace, please send the information to me at bskove@babcox.com or to our Tomorrow's Technician editor, Ed Sunkin at esunkin@babcox.com. We will post it to our website at no charge to you. We just ask that when the position is filled, you let us know and we'll take it down. Simple, easy, cheap, free.

And if you have an extra minute, let me know what you think about the new website. Though it's just over a month old, we're already looking for ways to improve it.

Right Tool for the Right Job - A Shotgun Works Every Time

They taught us in shop class: Use the right tool
This from the MSNBC staff and news service reports, updated 3:44 p.m. ET, Mon., Nov. 12, 2007
SOUTHWORTH, Wash. - A man trying to loosen a stubborn lug nut blasted the wheel with a 12-gauge shotgun, injuring himself badly in both legs, sheriff's deputies said.

The 66-year-old man had been repairing a Lincoln Continental for two weeks at his home in Kitsap County northwest of Southworth, about 10 miles southwest of Seattle, and had gotten all but one of the lug nuts off the right rear wheel by Saturday afternoon, Kitsap County Deputy Scott Wilson said.

"He's bound and determined to get that lug nut off," Wilson said.

From about arm's length, the man fired the shotgun at the wheel and was "peppered" in both legs with buckshot and debris, with some injuries as high as his chin, according to a sheriff's office report.

"Nobody else was there, and he wasn't intoxicated," Wilson said.

The man was taken to Tacoma General Hospital with injuries Wilson described as severe but not life-threatening.

The deputies did not take a statement from the man beyond what they were able to gather while he was being treated by medics, The Kitsap Sun reported on its Web site.

"I don't think he was in any condition to say anything," Wilson said, according to The Sun. "The pain was so severe, and the shock."

It was not immediately clear whether the shotgun blast loosened the lug nut.

The Associated Press contributed to this report.

The "R" Word

Dare we say it? Recession. There are whispers of it on the evening news. It's coming, they say - sort of like Thanksgiving and Christmas. Unlike the holidays, we don't know when Recession, the univited guest, will arrive.

I vaguely remember the last recession - 1981-82, I was still in college and not yet fully-employed. I remember going home during the winter holiday to a house kept a "comfortable" 65 degrees in December and January, an attempt by mother to keep heating costs to a minimum. I also thought it was her unveiled attempt to make me return to college sooner, but that's another blog....

Back to this year's recession...
What do we know about business? Number one - there are business cycles. Just because it's 2007 and a woman may be running for President of the U.S., does not mean the business cycle has been recalled, rejected or repealed.
The housing collapse continues. According to a recent article in Newsweek, New-home starts are now 47% below their peak of January 2006, and still declining. As the inventory of unsold homes continues to grow, their prices come down. Nationally, prices in August were down 4.4% from the previous year, except in Atlanta, Charlott, NC, Dalls, Portland, OR, and Seattle). Go figure.
Oil prices continue to rise. Media-types and industry analysts are predicting $100/barrel before the end of the year.
Credit continues to tighten. The incredible losses being felt on subprime mortgages (typically weak borrowers) are starting to squeeze the lending standards for better borrowers - leading to tighter lending practices.
The good news? Export growth is strong - projected to be up 16% by year's end, and the federal gov't continues to spend - up 7%
So why all the hand-wringing? Is a recession good or bad?
A recession usually means higher unemployment, weaker profits, and more stress at headquarters. According to Newsweek magazine, there have been 10 recessions since World War II, one about every six years, and they've generally lasted 10 months.
There are benefits to a recession - though anyone who loses their job as a result would argue. For instance, a recession will slow inflation. This means prices can't go through the roof, of course neither can wages. Also a recession can help reduce bad corporate investments and risky financial speculation. When credit gets tight, the banks look at investments a little bit differently, don't they? Short-term - a recession can be tough. But long-term, it can make our economy healthier. Quite possibly, it could lead to a reduction in oil prices and further reduce the price of a new home (which could spur new home sales and allow more people to be able to afford a new home).
There are two big questions. What will the Fed do next? What will the big corporations be reporting for profits in the next week or two?

Counterfeits: Do they hurt your business?

This from today's AMN:
U.S. Looking at Anti-Counterfeiting Trade Agreement with Trade Partners

Posted: Nov. 8, 2007, 10 a.m., EST

From AAIA's Capital Report

WASHINGTON -- During a press conference on Capitol Hill, U.S. Trade Representative Susan C. Schwab announced that the U.S. and several key trading partners are looking to negotiate a trade agreement to strengthen the worldwide fight against counterfeiting and piracy. Canada, the European Union, Japan, Korea, Mexico, New Zealand and Switzerland are currently participating in the talks about the Anti-Counterfeiting Trade Agreement (ACTA). The countries are looking to come to agreement on international cooperation, improving enforcement practices and providing strong legal framework for intellectual property rights enforcement. The agreement is not meant to amend any existing agreements. Rather, it is seen as a higher benchmark which countries can join voluntarily.

Other benefits to an ACTA agreement are seen to be the possibility of harmonized standards between countries and an improved ability to combat the increasing danger of health threats from counterfeit pharmaceuticals and foods. Schwab indicated that there is no stated deadline for the conclusion of negotiations, though the U.S. would like to move forward quickly. The initiative has received immediate support from the Copyright Alliance, an advocacy group which is comprised of members from a wide range of industries.

Interesting idea, but I don't see CHINA listed in the countries "looking to come to agreement".

Ripley's Believe It or Not

I received this information from the people at AAIA, but I'm just not sure I believe everything I read. (Plus, there was a typo on it that I fixed.)

Of course, now that it's been posted to a blog, it must be true, right? I read it on the internet. Seriously, this research was conducted by Opinion Research Corporation, so I'm sure the information is correct. It just doesn't "feel" like all these changes are happening yet. What do you think? Are you seeing similar behavior changes in your market area?

Consumers Reach Tipping Point on Gas Prices Spike: Survey Reveals Dramatic Behavior Changes
BETHESDA, MD – Nov. 7, 2007 – With gas prices heading for $4 a gallon, consumers are making dramatic changes in driving and vehicle care behavior to save money, according to results of a new study by the Automotive Aftermarket Industry Association (AAIA).

Nearly six in 10 people surveyed claim their driving behavior has changed due to rising gas prices. One-third of motorists surveyed stated that they would make changes when the price of gasoline reached $3 a gallon, and another 32 percent would invoke driving behavior changes if prices reach $4 a gallon, according to the survey conducted by Opinion Research Corporation.

When asked how their driving behavior has changed because of rising gasoline costs, 90 percent said they are driving less and 75 percent revealed that they are better maintaining their vehicle. Other specific behavioral changes were carpooling more (31 percent), purchasing more fuel efficient vehicles (30 percent) and making greater use of public transportation (24 percent). Additionally, more than half of consumers claim they are capable of performing light maintenance and repair jobs themselves.

"The fact that motorists are more aware of how proper vehicle maintenance will improve fuel efficiency is great news for the automotive aftermarket," said Kathleen Schmatz, AAIA president and CEO. "Properly maintained and operating vehicles are not only more fuel efficient, they are safer and more environmentally friendly.

"And we are delighted to see that 54 percent of consumers consider themselves do-it-yourselfers with light maintenance and 12 percent feel they are capable of doing medium maintenance and repair jobs. This counters claims that the DIY market is dying."

Interviews were conducted online with 500 people, 21 years of age or older, who are responsible for the purchasing of fuel and the maintenance and repair of the vehicle they drive. The data was weighted according to gender, age and geographic region. The maximum error range is plus or minus four points at a 95 percent confidence level.

For more information on the survey, e-mail Rich White at rich.white@aftermarket.org or call 301-654-6664. For more information on tips and advice for simple vehicle maintenance and care to improve gas mileage, contact the Car Care Council at www.carcare.org.

About AAIA
AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.

News from the AAPEX Show: Auto-Wares, Prime Automotive & Snap-on Tools

Last Week at AAPEX, held in Las Vegas: Fred Bunting Receives Art Fisher Award

AWDA presented the 2007 Art Fisher Memorial Scholarship Award to Fred A. Bunting in recognition of his passion for training and education. Bunting received this honor during AWDA’s general session, held last Sunday night in Las Vegas.

The Art Fisher Memorial Scholarship Award is presented annually to an aftermarket company or individual that demonstrates outstanding commitment to education and training, either within their own companies or throughout the industry. Given in memory of former AWDA chairman Art Fisher, the award grants substantial scholarships in the name of the award winner to two students enrolled in the automotive aftermarket management program at Northwood University.

Bunting is the founder and chairman of Auto-Wares Inc. Group of Companies headquartered in Grand Rapids, MI. Auto-Wares is a full-line, full-service, full-program distributor servicing more than 600 jobbers. The company employs more than 1,500 people who together operate 336 Auto Value/Bumper to Bumper stores and 630 Auto Value/Bumper to Bumper Certified Service Centers.

For many service professionals in the Michigan region, a high point of the year is the Auto-Wares Tech Expo. Auto-Wares holds two of these events annually in Milwaukee, WI, and Grand Rapids MI. The 10-year-old event is tailored exclusively to professional technicians in automotive, heavy duty and PBE specialties. Last year, more than 3,000 techs visited Tech Expo and attended more than 4,800 training classes.

The success of Tech Expo has garnered the attention of many others in the aftermarket industry. Bunting believes that the more training our industry provides to technicians, the better it is for everyone. He has freely offered the secrets of his success and, in 2006, even granted AAIA permission to duplicate, brand and distribute instructional DVDs that provide other aftermarket companies with the how-to’s for hosting their own training events.

“Without a doubt, this program goes above and beyond in the pursuit of excellence in training and education in the automotive aftermarket,” said Larry Pavey of Federated Auto Parts in presenting the award. “It is a great pleasure to honor Fred Bunting, the driving force behind this outstanding effort.”

On a separate note, Prime Automotive, based in Olive Branch, MS has been purchased by Marubeni, a Japanese company. Prime Automotive is a member of the Tools and Equipment Distributors Association (TEDA), and has been in business supplying parts stores and distributors since 1982.

Here is information from Marubeni's corporate website: Marubeni America Corporation, along with Marubeni Corporation and Marubeni Automotive (collectively "Marubeni"), have acquired the Olive Branch, Mississippi based Prime Automotive Warehouse (“Prime”) for an undisclosed amount. Prime, established in 1982, is an industry leader in the distribution of aftermarket auto parts, chemicals, and tools to its large reseller customer base. Prime mainly markets its products through a monthly catalog.

Marubeni recognized several growing trends in the US aftermarket, including the steady demand for parts and chemicals that keep older vehicles running. According to the Automotive Aftermarket Industry Association (AAIA), the automotive aftermarket market has grown from $138 billion in 1997 to over $204 billion in 2006.

The market for automotive aftermarket parts is competitive and highly fragmented. The transaction will allow Prime to combine its sourcing and mail order expertise with Marubeni’s domestic and international networks. As part of its growth strategy, Prime will consider acquisitions in its current industry as well as new markets that will allow it to further expand its product line.

Steve Friedman will continue as President of Prime and there will be no changes to operating management. Prime will be managed within Marubeni America Corporation's Transportation. Industrial Machinery, and IT business unit. This unit also manages Marubeni’s auto leasing operation, Advantage Funding, and dealership network, Drivepoint.


And how about this from Snap-on? They reported a higher net sales and income in 3rd quarter than expected. With an increase in net sales of 14.5% and an increase in net income of 31.4%! These figures bring their net sales to $680.7 million and net income $41.4 million. I'd say they're having a great year so far!

Sales from the company’s tools group increased $18.1 million,or 7.4 percent, to $262 million. This was primarily because of a 5.4-percent increase in North American franchise sales and strong sales from some of Snap-on’s international franchise operations, primarily the United Kingdom and Australia. Meanwhile, diagnostic and information group sales increased $25.1 million, or 19.8 percent, to $152 million due, in part, to the 2006 acquisition of Snap-on Business Solutions.

Check here later for more news on what's happening with the big tool guys!