4 Great Rules of Life

I came across these in a recent newsletter from our benefits coordinator. They could just as easily have come from my mother or my 9th grade English teacher. They're not earth-shattering, but they're good to remember:

1. Show up. Be in the room when decisions are made. Be home when you need to be home. Face your responsibilities. (I think they're trying to say, look at the person to whom you are speaking, not at your blackberry, cell phone or computer screen.)
2. Pay attention. Listen. Look for different perspectives. Stay hungry for understanding and new information.
3. Speak the truth. Say what is true from where you sit.
4. Let go. Let it happen. Know what is in your control and what is not. Shrug off the result, looking only for what you can learn. Go forward from there.

I break 3 of these rules more often than I like. I think it comes from being "busy", or wanting to be necessary to someone or some entity. But I keep trying to improve.

And as the Dow reaches its lowest level since 1997, here are some fiscal fitness tips for you to consider:

1. Don't keep too many accounts. Your investments can get out of control if they're spread over several banks, brokerages, and financial institutions. (However, in my experience, I've consolidated the majority of my accounts under one financial planner..... and it just doesn't matter.)
2. One person can make all the decisions for your business/home, but other people need to have a working knowledge of the investments and a sense of trust with the financial advisor. (again, in my experience, I've made all the investment decisions for our family, and my husband is aware of "our" plans, but..... it just doesn't matter.)
3. Share financial goals. Discuss your goals and how you plan to work toward them. My goal was to retire from working some day. (I thought I had been working toward my goal, until today. And now I feel like.....it just doesn't matter.)
4. Put aside enough money for retirement. Experts say we should all save 10% of our take-home pay. (Can't even comment on this.)
5. Don't tie up too much money in cash or one type of investment. (ha ha ha.... I'm starting to feel lightheaded from all this great investment commentary.)

I guess today was the wrong day to try to be fiscally fit. Good luck everyone!

Since this is a tool and equipment blog, I'll close with a quote from one of history's most widely quoted, "Anonymous": "You need only two tools: WD-40 and duct tape. If it doesn't move and should, use WD-40; if it moves and shouldn't, use the tape."

Finally - here's a trivia question for you. Is it duct tape or duck tape? Why?

How's Business? Recent Survey Results from Babcox

We recently surveyed Counterman readers about their current business conditions. Counterman magazine serves the business needs of the distribution channel of the aftermarket, so editorial is geared more towards the jobber, counterperson, or retailer. The survey was conducted in February, 2009. We had 126 responses.

Of the respondents, the majority (71%) classified themselves as a Jobber (NAPA, Carquest, independent, etc.) 20% classified themselves as a WD, and the rest were either a Retail store like Advance or AutoZone, or "other".

How are sales? We all want to know how the other guy is doing before we tell our tale. We asked how their sales in January compared to January last year. 60% reported sales were down, 23% reported they were the same.

How about February, we asked. 52% reported sales were down, 31% reported sales were the same. Oddly enough, for the months of January and February, 83% reported they were even or down. Yet, I take some comfort from the fact that the number reporting their sales were down had gone down 8%. That's a good sign that there is some life in the aftermarket.

What is your forecast for your locations' purchases from suppliers in March compared to March, 2008? 45% reported they would purchase less. But 51% reported they would purchase the same or more than last March. Again, not a bad indicator.

How are your current inventory levels compared to last year at this time? As you might expect, a large portion of the respondents had lower inventory levels (44%). But 33% had the same levels, and 22% had increased inventory.

We're all interested in the end user. Is he buying our stuff? Is he still working? We wanted to know, so we asked, "how does your current wholesale customer count compare to this time last year?" 44% reported they had fewer customers, 46% reported they had the same number, and 10% reported they had more customers than last year.

Last, we asked about returns. Answer this question yourself before you read too much further: What do you think is the industry rate of returns? I thought as an industry it runs about 18-22%. But according to our survey respondents, the total returns as a % of total sales averaged 9.7%. When we conducted this same survey five years ago, that number was 15%. So again, a good sign for our industry. Does this mean all the investments made in automation (from order entry to order processing) is finally paying off? This number includes warranty, cores, etc, so it is very inclusive.

One last thought, we asked them to classify the reason for their return. Cores, of course, accounted for the largest portion of the return - 48%. But the number one reason for a return is still the wrong part was ordered (17%). This was followed closely by warranty/defective (16%), with the wrong part delivered falling to a distant third, just 8%. This seems to indicate there can still be improvement in cataloging (both paper and digital) and training.

What do you think?

I think it's Friday, and Rascal is wondering if he's going to get his toy back.

GM Sheds Some Brands: Good News or Bad?

According to Edmunds.com, the Los Angeles-based auto research firm, the number one question on consumers' minds (as it relates to GM) is "What happens to my warranty and service cost in the short and long term?"
And the answer is, that GM will probably honor the warranty, even if the brand goes away. After all, they want to keep GM customers happy and coming back for more GM cars, when their Hummer or Saturn finally dies. Philip Reed, Senior consumer advice editor at Edmunds.com addressed this question in yesterday's WSJ. He also said other dealerships would pick up the warranty work at "comparable" prices.
But he didn't directly address the fact that GM also announced they will be closing the Saturn and Hummer dealerships, and quite possibly other GM dealerships as they prepare to shrink and become profitable again. This is good news for the aftermarket. As long as repair shops know what they're doing, and perform the service at a comparable rate, they should be able to generate additional business for their shops as these changes take place. And where will the good GM/Saturn techs go? They'll bring their expertise to the good shops.

Another comment about the Saturn line that came out in the WSJ yesterday is the potential for a Saturn made in China or India. According to the report, the Saturn Dealer Council would be open to selling vehicles made by Indian or Chinese makers that would be sold as Saturns. GM did not comment on any spinoff plans.

Good News for Better Heart Health

I'm taking a break from reading about and discussing bad news. It feels like there are many things going on in our lives today that are somewhat out of our own control. So today, I only have good news for you, news that you can use to personally become a healthier person today and in the future.

Happy Belated Valentine's Day!

Heart Disease: You can control certain risk factors

• Don't smoke
• Stay at a healthy body weight
• Limit alcohol
• Exercise for at least 30 minutes a day
• Control your blood pressure
• Limit your daily salt intake

Eat right for a healthier heart: this is all the good stuff you should be eating

• Spinach and other dark, leafy greens (Popeye was right!)
• Fish and shellfish (tho not too much from Lake Erie, or your mercury levels will go through the roof!)
• Dried beans and peas (re-hydrate them before eating)
• Watermelon and cantaloupe
• Soy protein - this can help lower cholesterol
• Oatmeal and barley - reduces cholesterol and helps control blood sugar levels
• Garlic and onions - I'm Italian - I eat this stuff every day!
• Sweet potatoes
• Avocadoes
• Nonfat milk

Info is from the National Heart, Lung, and Blood Institute

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.

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)
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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.

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.