Brand Building
Succession Planning Case Study
Web University, Part 2
November/December 2012
Bill’s Quality Auto Care Progressive Shop Lives Up to Its Name
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November/December 2012
Shop Profiles
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28 Bill’s Quality Auto Care, Simi Valley, CA 44 Oceanside Transmission, Oceanside, CA Web University, Part 2
Features 6
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Shop Profile: Bill’s Quality Auto Care
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Web University, Part 2: -Your Web Questions Get Answered
18 Brand Building: -Improving Customer Satisfaction 36 Buying & Selling An Aftermarket Business: -Succession Planning Case Study
Sponsored by
Building Your Brand
Shop Profile: Oceanside Transmission
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Departments Shop Owner Staff
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Executive Interview: Christian Brandt, ACDelco
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Shop Management: Transparency in Pricing
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Sales & Marketing: Leveraging Car Care Events
Publisher
Jeff Stankard 330.670.1234, ext. 282 jstankard@babcox.com
Editor
Mary DellaValle, ext. 221 mdellavalle@babcox.com
Graphic Designer
Kelly Gifford, ext. 249 kgifford@babcox.com
Advertising Services Director
Cindy Ott, ext. 209 cott@babcox.com
Contributors
Colleen Brousil, ext. 272 cbrousil@babcox.com Jennifer Clements, ext. 265 jclements@babcox.com Tim Fritz, ext. 218 tfritz@babcox.com Denise Koeth, ext.274 dkoeth@babcox.com Andrew Markel, ext. 296 amarkel@babcox.com Ed Sunkin, ext. 258 esunkin@babcox.com
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Director of eMedia/ Audience Development
Brad Mitchell, ext. 277 bmitchell@babcox.com
Subscription Services
Kim Hedgepeth, ext. 260 khedgepeth@babcox.com
Babcox Media, Inc. 3550 Embassy Parkway Akron, OH 44333-8318
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President
Bill Babcox bbabcox@babcox.com
Vice President/ Chief Financial Officer
Greg Cira gcira@babcox.com
Vice President
Jeff Stankard jstankard@babcox.com
Controller
Beth Scheetz bscheetz@babcox.com
In Memoriam
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Founder of Babcox Publications
Edward S. Babcox (1885-1970)
Chairman
Tom B. Babcox (1919-1995)
䊚2012 by Babcox Media, Inc.
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|Web|University
Part 2 And here we are again. With all the Google changes, small businesses are scrambling to avoid being relegated to the Internet’s junk bin. Let’s stay on top of it. Whether it’s Google search, social media or what to do with Google+, you’ll find answers to the most challenging questions, in both a “Go Deep” and “Quick Bites” format. Questions submitted by shop owners at www.ShopOwnerMag.com will be answered by Uwe Kleinschmidt, CEO of AutoVitals, a leading supplier of web-based marketing and service advisor productivity tools.
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Go Deep
Setup – AdWords
Q: What is the difference between AdWords and AdWords Express? A: Google is perfecting its tool suite to post ads almost every month. What goes along with that is the complexity of hundreds of settings, and most small business owners struggle to find the correct configuration for their needs. Google has introduced AdWords Express to make it easier to set up AdWords campaigns. Here is a list of advantages and disadvantages of both types of Pay Per Click (PPC) advertising.
With a long and complex list of settings, AdWords experts make sure that every thinkable aspect of your ad campaign is set correctly. A fully thought-out campaign can take an hour or two to set up, and that’s if you know exactly what you want and all the tests for effectiveness have already been done. AdWords’ biggest advantage is the ability to configure key words of your campaign.
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Setup – AdWords Express With AdWords Express, you select the category you want to
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promote (for example, brake repair), type in a description of your business, set your budget and off you go. You can be set up within 10 minutes. One downside to AdWords Express is you can’t pick your own key words; Google does this for us, based on its research of what groups of key words best represent the category. So don’t be surprised if “car service” gets you hits for “limo service,” as Google thinks they are synonyms.
ing campaigns and cleans out suspicious reviews. Suspicious because one Gmail account created too many reviews, suspicious because one IP address logged into too many Gmail accounts, etc. Unfortunately, more often than not, genuine reviews get deleted, while some reappear and some don’t. There is nothing you can do about it, other than be genuine and do not game the system.
Q: What is Reverse Proxy? A: Many small business owners like to track the Visit phone traffic to their shop or store. Since www.ShopOwnerMag.com Google punishes tracking phone numbers on webto Submit Your Questions sites by giving them a for Web University low ranking, only PPC campaigns can be used to add a tracking phone Appearance – AdWords number on a website different from There is a significant variety of ways the one found by the Google crawler. to configure your ad’s appearance on In order to avoid duplicate content, Search and on Google Maps, for which is another reason for a Google example, phone number, location, ranking decrease, but still be able to etc. AdWords, however, has no ability add another phone number, a techto let Google reviews shine. nique called Reverse Proxy is used. All hits from the PPC campaign still Appearance – AdWords go to the original site and the Google Express crawler is told to ignore the shadowed The biggest benefit of AdWords copy. Copyright issues still arise and Express is the way ads appear, need to be discussed with your web especially after Google turned the 5designer, since technically it is a star rating of Google reviews into a 100% copy of the original website. score. The human eye immediately detects the 5-star rating and checks it Q: I want to place a video on the out. The score seems hidden and home page of my website. How long complicated by comparison. should the video be? A: Our research indicates that placing videos of any length on the homeQuick Bites page is not ideal. Think about it: visiQ: Why do reviews disappear on tors typically take 15 seconds to get a Google? first impression of your business on A: Google does regular housekeepthe home page before they decide to www.ShopOwnerMag.com
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explore the site further. The time available to watch the video is simply too short, and our research indicates that click rates are less than 2% for videos on the home page and, thus, waste precious real-estate. Q: Mobile applications are highly advertised by many suppliers to the auto repair industry. Why are they important? I have more than 50 apps on my iPhone. Why would anybody remember an auto repair app and tap
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it three months after installation? A: Good point. App providers want to be on as many phones as possible, but to make a difference, the content needs to be interesting and have repeat value. A good way to remind the motorist about your app is via push notifications (the pop up boxes on your iPhone) about promotions, service reminders and the like. Check out our mobile app blog.autovitals.com/goingmobile-are-you-in/ to see what I mean.
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Q: My service advisor is not collecting enough e-mail addresses. Isn’t buying e-mail addresses that match my customer database the best way to build up e-mail addresses? A: At first sight, buying e-mail addresses is a convenient way of building up your list. The question is, how much are those worth? Every one of us hates to see e-mails flooding our inbox, especially those that are unexpected or that make us wonder, how the heck did the sender get their hands on my e-mail address? In other words, buying e-mail addresses violates the ground rule of permission-based marketing, which is — getting the permission. In our own tests with buying e-mail addresses and looking at e-mail stats from clients who converted from other vendors that offered e-mail buying services, the verdict is clear: Bounce rates (invalid e-mail addresses) sky rocket and opening rates (does the recipient care about your message?) plummet. Look at it this way: you are a local business providing local services to 12
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local customers. This is sustainable only by maintaining a trusted relationship. Buying e-mail addresses is like trying to buy a trusted relationship. You be the judge on whether that is possible. SO Uwe Kleinschmidt is the CEO and founder of AutoVitals in Santa Barbara, CA. The company’s Web-based services focus on the independent automotive repair industry. AutoVitals’ products facilitate highly effective Concierge Auto Repair services, covering all aspects of the service advisor’s interaction with prospective and existing customers. Highly effective and optimized websites, workflow support in the shop, as well as customer retention and social media services are just a few ingredients. He can be reached by visiting blog.AutoVitals.com or calling 1-866-949-2848.
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Executive|Interview|
Christian J. Brandt National Marketing Manager, ACDelco
ACDelco National Marketing Manager Chris Brandt is an automotive aftermarket industry veteran. He joined ACDelco in 1984 and has served in a variety of roles, including Product Development, Channel Strategy, Supply Chain, Operations and Marketing.
ACDelco revamped its service center affiliation program this year; can you tell me about it? We all know successful shop owners understand their business is as much about people as it is cars. Likewise, the ACDelco box contains more than a part: It offers more than a century of aftermarket business expertise. Our shop owners give us high marks on our products, and they also want smart support that helps them drive business growth and efficiency. The ACDelco Professional Service Center Program helps us deliver the business support tools our shop owners are asking for. In addition to high-quality, competitively priced parts, it pro-
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vides industry-leading technician training and tracking tools; marketing support; easy and attractive purchase incentives; and expanded consumer assurance. Nearly every member of our former Total Service Support program signed up for the Professional Service Center Program this year. In an industry built upon the cornerstones of mutual success and trust, it demonstrates our shop owner customers believe we’re providing value both in the bay and to the bottom line. Next year, we are going to leverage the success of the Professional Service Center Program as we explore additional ways to talk to our current customers and bring new ones into the ACDelco family. I am pretty confident our customers are going to like what we have planned. Can you provide some examples of ways ACDelco is supporting shop owners? Absolutely. For starters, we’re
using technology to get customers in the doors with the locator tool on our ACDelco.com website. Consumers type in their ZIP code for a list of nearby shops and driving directions. Clicking an information icon takes them to a landing page with the shop’s history, hours and services performed. As more and more business transitions to online and mobile, we’re also using Web national and local search tools to drive customers to the ACDelco home page, parts page or shop locator, and directly to our Professional Service Center program participants. We’re doing this with both a national ACDelco branded search and locator, as well as locally targeted keyword campaigns that use unbranded service terms. Once we provide those business leads, the Professional Service Center shop owner has a full circle of services at his or her disposal, including two new customer-friendly programs. This year, we added same-day labor reimbursement to our White and Blue-level shops. That’s huge. Also new this year is our Roadside Assistance service that covers eligible services performed at an ACDelco Professional Service Center. Towing, fuel delivery, lockout, jump start and flat tires are included. Additionally, we continue to cover ACDelco parts for 12,000 miles or 12 months. And speaking of parts, we simplified our promotions and incentive programs to add flexibility and to streamline the redemption process. We’re also making it easier for shop owners
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to buy and install ACDelco batteries in two ways: One, with Battery Marketer Program trucks that provide consigned inventory, service and point-of-sale materials; and two, with our recent decision to replace pro-rata battery warranties with free-replacement warranty periods. We also work with distributors to assist shops with professionally developed signage and other store image enhancement because you get only one chance to make a first impression. Building graphics, curb appeal elements such awnings, pointof-sale materials and other items convey a sense of sophistication while still preserving local flavor. Ongoing technician training is absolutely necessary yet hard to schedule. So we help our shop owners by making it easy to keep their technicians trained on the latest vehicle repair technologies without costly time away from bay. Just as vehicle repair techniques change, so do customer demographics. Women now make or influence 85 percent of all consumer purchases, so we developed an award-winning seminar to help them feel more empowered about car maintenance and repair. Called Knowledge is Power, it gives the shop owner everything he or she needs to deliver a car care seminar to an audience of women, whom we know are among the most effective ambassadors a shop can have. Many of our shop owners are seeing new customers come through the door after sponsoring a Knowledge is Power seminar, and we’re making sure that
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this professionally-developed program always reflects the most up-to-date industry maintenance information. How is the ACDelco Advantage line performing, and what other news can you share on the product front? ACDelco Advantage products have been a critical and commercial success for us, and together with our Professional and GM OE lines, give us a terrific good-better-best product lineup for our customers. This year we launched an all-new line of Advantage chassis components and Advantage batteries. For many shop owners, the aging vehicle fleet is a double-edged sword: Their customers’ cars and trucks need work, but budgets are tight. That puts the shop owner in a bind. If he installs cheap, no-brand parts and they fail, he risks his reputation and an expensive comeback. With Advantage, our shop owner customers don’t have to make that choice. The price is competitive and the quality is high. Everything needed for the installation is in the box, which saves time. And, consumers
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who visit a Professional Service Center Program participant get a safe, quality part backed by a solid warranty and well worth the money they paid to have it installed. Since introducing the Advantage line in 2009 with brake rotors and drums, we’ve added a friction lineup and hundreds of part numbers. We’re seeing year-over-year growth for Advantage with no effects on our other lines. Our Professional line of high-quality aftermarket products covers not only GM but multiple makes and models. Major lines include batteries, filters, plugs, brakes, chassis, rotating electrical, water pumps, belts, hoses and more. Our all-new Professional starters and alternators recently went on sale and we’re getting positive feedback from both our distributors and shop owners. Of course, our heritage and strength lie in our longstanding role as the brand of OE parts for the world’s largest car parc – GM cars and trucks. We currently offer GM OE parts available both to distributors and through the GM dealer network. They’re backed by the engineering excellence of GM, which is something our competitors can’t say. I mentioned earlier that we phased out pro-rated warranties on our batteries. While our battery coverage has always been among the best in the business, our distributors and shop owners told us they wanted a transparent, easy-to-understand warranty that removes the hassle and guesswork associated with pro-rated coverage. SO
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Brand|Building|
by Dave Mesko, senior director of marketing, Cintas Corporation
What Image Does Your Business Project? Tactics To Improve Customer Satisfaction There are more than 175,000 automotive repair shops in the U.S., so how can shop owners differentiate themselves and stand out from the competition? While having the most up-to-date technology and talked-about customer service is always beneficial, sometimes a more simple solution can help to improve the customer experience and your shop’s bottom line. The professional image that a shop displays often makes the crucial difference between an ordinary experience and one that encourages repeat business. Through a complete program that enhances the image of customer areas, personnel and service bays, independent repair shop owners can improve customer satisfaction — and boost profitability.
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Take Stock of the Shop Prior to determining specific image improvements, owners and operators should assess their current cleaning policies and procedures, and conduct an inventory of personnel and equipment. By first determining the current status of the facility, owners can develop specific strategies that will help to improve professional image and cleanliness throughout the shop.
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To ensure employee un u clean and free of grim laundry service provide provid pick-up and drop-off t
niforms are always me, partner with a er to schedule convenient times for uniforms. Following the assessment, consider implementing the following image improvements: • Develop customer area cleaning programs. The waiting area is the first opportunity to create a positive impression among customers. Keep this space in pristine condition to project the best possible image. Ensure that chairs, tables and refreshment stations are kept clean and free of debris and trash. To improve overall cleanliness and image, sanitize and disinfect hard surfaces daily to remove debris and bacteria. In addition, develop a trash removal schedule to eliminate odorcausing waste that accumulates throughout the day. Schedule daily floor cleanings to ensure these areas also stay free of any debris or liquids. Keep a continuous supply of coffee, tea, soft drinks and snacks to accommodate varying customer preferences in refreshment areas. Since refreshments are typically self-service, spot-check this area frequently to ensure items are stocked and clean it once every few hours to remove spills and trash. Additionally, ensure that guests are greeted with a sanitized, well-stocked and odor-free restroom. Make sure restrooms are regularly stocked with soap, paper towels and toilet paper to keep restroom users satisfied. To combat unpleasant odors in customer restrooms, use time-released air freshen-
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ers. Assign someone to regularly check on restroom conditions and restock essential supplies. By creating a pleasant experience in waiting areas and restrooms, customers will feel inclined to return for future services. • Ensure personnel look their best. Frequently, shop owners will overlook the importance that a professional-looking technician has on the overall customer experience. As employees serve as a vital point-of-contact in the shop, they offer a critical opportunity to impress customers. Additionally, the image of employees sends a message to customers about the level of service and care their vehicles will receive. To help employees look their best, provide access to a freshly laundered uniform prior to each shift. Choose a uniform style that promotes the shop’s brand with customized logos, color schemes and styles. Before implementing a uniform program, ask for employee feedback on fabrics and styles they feel are most comfortable and functional. For example, cargo pants help busy technicians by providing added storage for tools and small parts. Jackets and vests are useful for cold winter months and can complete the entire image program. To ensure employee uniforms are always clean and free of grime, partner with a laundry service provider to schedule convenient pick-up and drop-off times for uniforms. Additionally, hand-washing stations located throughout the service areas help ensure employees always greet customers with clean hands. Stock the hand-washing stations with heavyduty soaps to cut tough grease and oil. Employees appreciate manage-
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Use cleaning equipment with agitation tools to effectively remove grease and lubricants from shop flooring.
ment’s dedication to their personal image and feel more confident when they look their best. • Organize and clean service areas. As technicians sometimes bring customers into service bays to discuss their vehicle, these areas should always remain in top condition. Keep tools and parts organized by providing appropriate shelving and storage units. To eliminate the accumulation of dirty parts, provide a mobile parts washer to help clean parts efficiently and safely, while also enhancing the image of the service area. Choose a parts washer that uses a non-toxic, pH-neutral, aqueous solution to safely remove grease and oils from brakes, suspension components and steering parts. These units help eliminate the need for toxic aerosol parts cleaners and improve indoor air quality throughout the shop.
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Stock the hand-washing stations with heavy-duty soaps to cut tough grease and oil.
Additionally, the cleanliness of flooring throughout the service area is one of the most critical factors that can influence customer perception of the shop. Develop daily floor cleaning protocols that can easily be performed during slow periods to maintain flooring throughout service areas. Use cleaning equipment with agitation tools to effectively remove grease and lubricants from shop flooring. Maintain cleanliness by implementing a matting system to absorb and contain slippery liquids and grease. Place matting in walkways located from the service areas to customer waiting rooms to prevent the tracking of slippery liquids and debris indoors. Matting also helps to prevent slip-and-fall accidents for employees and guests, which can weigh heavily on both the shop’s professional image and reputation. • Train employees. Ensure that employees are properly trained on policies and understand the importance of the shop’s image. Enhancing the shop’s professional image is a group effort, and all employees must
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be on board to guarantee the program’s success. Provide training sessions to educate employees on how to use new equipment correctly and safely. Training provided by equipment suppliers is beneficial, since they are professionally trained in the proper usage and safety measures associated with their equipment. By clearly communicating specific ways that employees can contribute to the program, shop owners will ensure their facility’s image is continuously improved. Frequently, shop owners and personnel can feel overwhelmed by day-to-day business responsibilities. If this is the case, consider partnering with a service provider to help facilitate a training program and guarantee its success. While developing a professional image throughout your facility can be an investment in terms of time and resources, its benefits will be well worth the effort. It will impress customers, differentiate your shop from the competition, and lead to higher customer satisfaction scores; all of which translate to repeat business and improved revenue. SO
Dave Mesko is senior director of marketing for Cintas with more than 16 years of industry experience. Cintas Facility Services offers a wide range of solutions that enable businesses to build their image and increase profitability and productivity. For more information, visit www.cintas.com/ FacilityServices.
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Shop|Management|
by Bob Cooper, president, Elite Worldwide, Inc.
Transparency in Pricing It’s Now a Mandate, Not an Option There was a time in our industry when shop owners were the only ones who knew the cost of their parts. Additionally, the amount they charged for their repairs and services was typically not public knowledge. If customers wanted to know how much it would cost to perform a specific repair, they had limited options; they would have to either call for an estimate, or visit a repair facility. The service advisor would then page through a catalog, find the price and then share that price with the customer. As we all know, times have changed, and after decades of confidentiality in pricing, technology has now done more than just change how we diagnose and fix automobiles; it’s actually made pricing transparent. The days of holding your prices close to your vest are not only gone, but if you continue to follow that age-old policy, you’ll more than likely struggle in the coming years. As we all know, the Web has dramatically changed how you operate your business. It’s changed how you market, how you communicate with your customers, how you order parts, and how you diagnose and fix vehicles. Yet the one thing most repair shop owners are reluctant to accept is that, unlike in the
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past, pricing on every conceivable repair and service is now available within moments online. Now we all know that those prices found online can be as incorrect as often as they are correct, but the reality is this: as we move forward, more people are going to be turning to the Web, not just for finding the right repair facility, but for a range in pricing, as well. It’s currently happening in every other industry, so there is no reason to
believe that it won’t become even more commonplace in our industry as well. Here are the things I encourage you to consider. First of all, you should accept the fact that an increasing number of your first-time visitors will have either already searched the Web for a range in pricing, or they will do so within minutes after you provide them with an estimate. In many cases, they will do their price comparisons with their smartphones, and they’ll do it while they are still at your facility.
providers, those companies never survive. So, here are my recommendations for those of you who want to grow more profitable, successful businesses in the coming years. You should start doing what your potential customers are already doing, and survey your legitimate competitors. I’m referring to facilities that offer services and benefits that are comparable to yours. Secondly, ensure you are competitive with your prices. This doesn’t mean you can’t charge more, but you have
Customers have access to pricing info 24 hours a day, 7 days a week, and they not only expect transparency, but they demand it. This brings me to the second point that I hope you consider, which I refer to as integrity in pricing. With the ease of access that consumers now have to pricing information, in the coming years the top shops will be competitive in pricing, and they will be proud of the value they deliver. Now before I go any further, I’m not suggesting that a shop can’t charge more than its competitors do, but if the prices they charge are viewed as out of line with other well-run facilities, there is no question: they’ll lose their customers, and their reputation, at the same time. The proof is evident in every other industry, because history has shown us that no matter how good the hotel, airline or restaurant may be, if their customers don’t feel that the pricing is comparable to similar service
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to be comparable, and you have to believe in the value delivered. Finally, I am not suggesting that you should quickly provide a price to every price shopper, or that you should provide a price before you have built value in the service. What I am suggesting is that you need to embrace the fact that your customers are no different than you and me. They have access to pricing info 24 hours a day, 7 days a week, and they not only expect transparency, but they demand it. There is no question: transparency in pricing is now a mandate, not an option, for every shop owner, worldwide. SO Since 1990, Bob Cooper has been the president of Elite Worldwide Inc. (www.Elite WorldwideStore.com), an ethics-based company that helps both struggling and successful shop owners take their businesses to new levels through one-on-one coaching from the industry’s top experts. The company also offers shop owners sales, marketing and management seminars, along with service advisor training. You can contact Bob at contact@eliteworldwidestore.com, or at 800-204-3548. November|December 2012
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“I have people who work with me, not for me, in business. They have that ownership mentality and they know if the business does well, they’re also going to do well.” -Bill Garcia, owner
Shop|Profile|
by Debbie Briggs, contributing writer
Bill’s Quality Auto Care Lives Up To Its Name and Keeps Customers Coming Back For 19 Years Bill’s Quality Auto Care Owner Bill Garcia was “green” before green was even popular. When he opened his shop in Simi Valley, CA, 19 years ago, it was a given that he would promote best practices such as recycling waste oil and metals. And he and his staff are always working to make the shop as energy efficient as possible.
“Ever since I was a kid and I used to tag along with my uncle in his little garage in the back, he always taught me that throwing things away, especially metal, was a shame,” Bill explains. “He said people throw away too much in this country. He spent time in Europe and had been in Vietnam, so he had the chance to see other cultures’ (values) and he brought them back. He said those people use as much as possible, and we just waste so much. “So he taught me early on not to throw away metal, so even before the green movement, I never threw away metal,” he continues. “I would keep it in a barrel and someone would collect it. It just drove me nuts that there was going to be a water pump in some landfill forever. And that was before it was cool to do.” In addition to metal, paper products, tire waste, and bottles and cans are all recycled. Large
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bay doors are kept open to allow enough light in without using overhead lighting, and efficient T12 fluorescent lighting is used throughout the shop and offices. A high-efficiency air compressor provides air to all of the shop’s tools, and the shop’s computers utilize powersaving features and flat-panel monitors that use significantly less electricity. “We have invested heavily in quality equipment that captures fluids from all of the fluid flushes performed on vehicles,” Bill says. “Coolant/antifreeze, transmission fluid, brake fluid and air conditioner refrigerant chemicals are cared for with high regard. The equipment we utilize is made to minimize and eliminate the chemical effects on our environment. “Our service facility is taking many steps forward in helping keep our environment clean; it’s important for future generations, and it starts with us.”
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With 12 bays, Bill’s Quality Auto Care offers a full range of services for domestic, European and Asian makes, as well as light truck diesel. All of the work performed at the shop carries a minimum two-year/24-month parts and labor warranty.
“Our service facility is taking many steps forward in helping keep our environment clean; it’s important for future generations, and it starts with us.” Marketing and Customer Perks Just as Bill’s Quality Auto Care is known among its customers as being environmentally conscious, clients also know to bring their sweet tooth when they pick up their vehicle after service. “One thing that we’ve had for years and years is our Hershey bar program,” Bill says. “Whenever a customer finishes a transaction at our shop, they receive a chocolate bar (or
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a diabetic alternative) with a $5 off coupon attached to it, and they have no limitations. We had one customer bring in 17 of them one time, and she asked if she could use them all. I said, absolutely! They’re just like money. That’s been a basic, but nice, thank you. That will be with us forever — unless chocolate gets outlawed.” Marketing to current as well as new customers has always been a specialty at Bill’s Quality Auto Care. Current
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customers have come to expect Bill’s Seasonal Specials mailer, which covers most major inspections at $69.99, with a discount when scheduling online. Kelli Garcia runs the shop’s Facebook page, which keeps “friends” coming back to see her latest recipes and interesting family information. When a customer becomes a friend on Facebook, they also qualify for free wiper blades on their next visit. Bill says the shop’s website, www.billsqualityautocare.com, has been instrumental in communicating with new and current customers, and a mobile version has been a hit as well. Just as the site has changed looks many times over the years, the information within the site has also grown in scope and quality. “We link to our Facebook page, allow for online appointments, established a QR code for contacts, a link to AutoNet TV information and have
recently started an online blog,” Bill explains. “We’ve also optimized a mobile website that was designed for people on the go. It’s designed with buttons just like an app: Call us, About Us, Hours, Contact Us. It’s been very well received. This came about because people tried to find us, and they told us that they really just wanted a phone number. They want to know how to get here, they want to call you; they just want some basic things. “We feel our website presence has been a key reason for our continued success and shop growth, and will continue to provide the best possible content to our customers.”
Employee-Centric Focus Bill also focuses on employees and says a business is only as good as its people. To that end, technicians and service writers are given access to
From left: Alex Foreman, service advisor; Joe Shaw, ASE-certified service advisor; Bob Cornwall, operations manager/fleet manager. www.ShopOwnerMag.com
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Johnnie Ornalles: ASE Master Technician, CA smog certified, with nine years of experience.
Adam O’Connell: ASE Master Technician, CA smog certified, with 13 years of experience.
Steve Blazey, ASE Master Technician, with 30 years of experience.
Don Horton: ASE Master Technician, CA smog certified, with 27 years of experience.
Scott Hodges, technician trainee
Kyle Garcia, utility person and shuttle bus driver
more than 100 hours of training each year. Offered at no charge to them, technicians receive specialized training from several of the shop’s suppliers, both onsite and off. Service writers have also received training from Elite Worldwide, Inc.; two have gone through the Master’s Program established by Bob Cooper.
myself, service advisors and technicians. That’s part of my job to look at each guy’s file and history and see what training he’s had lately, and what he needs a refresher on. I spend a lot of time on that.” Training isn’t the only benefit for employees; they can also take advantage of a 401k program, health care benefits, profit sharing, Costco membership, uniforms, paid vacations, paid ASE testing and bonus programs. Bill credits his 15-year association with Bob Cooper and Elite Worldwide with changing the way he does business, saying that he taught him “a lot about putting people first.” “I don’t want my employees coming to work and wondering how they’re going to pay the bills, or how they’re going to send their kids to school,” he explains. “That’s a real problem nowadays. I uphold my end by providing the training and the means to make a good living, and what I expect in return is a good attitude.”
Formula For Success
“Our budget for training very often exceeds 3% of our GP; in fact, it goes as high as 5%,” Bill says. “But I’ll tell you what, it pays back, especially if you’re careful about what kind of training you send everyone to — and I’m talking about everyone, including
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Success, Bill says, all starts with the right people, and proper training, procedures and equipment. “A lot of people don’t consider their staff as much as they should,” he says. “I have people who work with me, not for me, in business. They care about the lights being left on, they care about that piece of equipment being abused or not. They have that ownership mentality and they know if the business does well, they’re also going to do well.” Given the longevity of this California shop, Bill Garcia just might be onto something: Success and motivated employees go hand in hand. SO
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Buying & Selling|An Aftermarket Business
by Art Blumenthal, MBA CBI
Selling an Independent Auto Service Business An ‘Emotional Rollercoaster’ for Both the Buyer and the Seller “Am I supposed to just keep working until I drop dead?” is a question many Baby Boomer generation business owners may ask themselves sooner or later. Jim Hermansader, a veteran of the automotive service industry who had spent 43 years, since he was 18 years old and fresh out of high school, in a family-owned business, had to ask the question out loud when he received some pushback from those who challenged his decision that it was time for his business to change hands.
Hermansader’s Garage 400 Kohler Hill Road Hamburg, PA 19526
The Sellers: Jim and Kimberly Hermansader in welldeserved relaxation mode in the summer of 2012 after selling the automotive aftermarket business owned and operated by the family since 1969.
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Jim, an ASE-certified technician, and his wife, Kimberly, owned and operated the seven-bay auto service business since 1980. The business was founded by his father in 1969, with Jim growing up in the automotive service industry and eventually becoming the co-owner with his brother of the independent center until he bought out his brother’s share in 2000. “The journey we took from deciding to sell, to listing the business with a broker, to finding a buyer, to dealing with the financing requirements of the bank, to actually closing the deal was an emotional rollercoaster for us,” noted Jim. “All of those things occurred within a six- to eight-month timeframe, but I was talking to business brokers about selling
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for a couple of years before actually making the final decision to move forward. So it was a very long ride on that coaster.” Jim and Kimberly had reached a point in life where their children had completed college, their residential mortgage was paid off, and they questioned whether they really needed to spend the energy it takes to maintain and grow a business. “We decided that Art Blumenthal was the right business broker for us, but then Kimberly and I had a sudden change of heart when it came to signing on the dotted line, and we backed out. Art understood and was a gentleman about it. A year later, we finally decided that we’d had enough of running the business, that we really wanted to enjoy a retirement, and we were ready to sell.”
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About the Buyers Neither Jeff Pettit nor his son-in-law Chris Yost, co-buyers of Hermansader’s Garage, have a background in the automotive service industry. Jeff worked as an estimating manager for a company that built truck bodies, and Chris worked in the computer field. Chris, however, had some vocational technical training for auto repair and spent a lot of time working on old cars with his grandfather. Jeff worked for 29 years for the same company. Chris received a computer science degree and then obtained a position as a computer engineer for a help desk firm before buying Hermansader’s with his father-in-law. “We wanted to purchase both the business and its real estate because in this market we could buy the property outright for less than we could rent it,” said Jeff. “But long
before we got to that point, it was an ‘emotional rollercoaster’ for me to make the final decision to go into business for myself. “My son-in-law and I get along very well and have often discussed owning a business together,” Jeff continued. “I was in no hurry to leave the security of the firm for which I worked for so long, but Chris was a driving force in making me decide that we could chart our own destiny by becoming our own bosses. Chris found the listing posted by Art Blumenthal on-line and brought it to my attention. He knew that I would consider buying only an established business and this one seemed to fit that bill.” Jeff and Chris recognized the potential to grow the customer base, an endeavor that the former owners had not pursued because they were in retirement mode, rather than businessbuilding mode. Chris admitted that he always had the entrepreneurial spirit. “I always wanted to run my own business. Even
though it looked for awhile as if computer science would be my career path, things changed and now I’m in the auto service industry.”
About the Business Hermansader’s Garage, providing quality car care in Hamburg, PA, since 1969 (www.hermansadersgarage.net), has a reputation for honest and efficient customer service for two generations, resulting in a loyal consumer base and a consistent positive cash flow. Located about 60 miles northwest of Philadelphia in east-central Pennsylvania, this seven-bay, fully equipped business offered a buyer a unique opportunity for acquiring and growing an established profitable business with strong customer loyalty.
Selecting a Business Broker
Jim said, “I interviewed two other business brokers before deciding to utilize Art’s services.” The other brokers didn’t make the cut because they didn’t seem to fully understand the complexities of selling a longstanding, profitable business. “One guy wanted to put up big For Sale signs…red flags to customers, employees and suppliers,” noted Jim. Confidentiality is a key attribute of successfully selling a business and an experienced business broker knows that well. “The other broker who I The Buyers: New owners of Hermansader’s Garage, had to disqualify had deep Chris Yost (left) and his father-in-law Jeff Pettit, pose experience in selling busiin front of their newly acquired business. nesses in practically every
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industry…except automotive service. When I learned that Art specialized in automotive businesses and then interviewed him at our first meeting about how he would handle the sale, I knew he was the right choice. Art was so patient and professional with us when we initially changed our minds about selling. His reaction impressed us,” observed Jim.
The Business: What’s It Worth? “When first deciding to sell, I basically had a number in mind for what I needed to get for the business so I could retire,” said Jim. “We knew that if we hired some more technicians and committed to a marketing plan, we could grow the business, thereby increasing its value substantially. But the truth is, that I was just tired and didn’t want to make those commitments, so we established a sales price based upon the actual worth of the business now, rather than on its potential worth. “Art worked closely with us to provide guidance in establishing a sales price that considered our cash flow and other key attributes of our business,” said Jim.
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Scope/Timeline of the Sales Process Initially, it was Jim’s plan to not include the sale of the real estate along with the business. Art recommended that, in this case, it might be prudent to list the purchase of the real estate as an option. Although Jim had planned on leasing the real estate as a source of monthly retirement income, it was also pointed out to him that should the business not succeed under new ownership, that revenue stream could abruptly be halted. In the end, both the business and the real estate were sold together in a financing package that made the most sense to all parties involved. “Once Art had listed the business in the Fall of 2011, the next thing I knew he called and said he had a prospective buyer,” said Jim. “I had thought the process would take a couple of years, so the speed in which he supplied a prospect surprised me. The prospective buyers, Jeff and Chris, came and took a look on a Satur-
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day in October and we had a nice discussion, and by Monday Art called and said they had made a deposit. I was both floored and excited by the speed in which things were happening. “Just as I was getting accustomed to the idea that this was going to happen smoothly and I could go to bed and sleep soundly without worrying anymore, as Thanksgiving approached the buyers suddenly dropped out,” Jim continued. “So we were very disappointed and back to square one…one of those plunges on the ‘emotional rollercoaster.’ But then several weeks later, Art again called and said the buyers were back in the game. “We then waited while eagerly anticipating the bank’s approval of buyer financing. Once it was approved and a letter of commitment was issued by the bank, it was a big relief. We were notified by the bank that a phase one environmental impact study and a business appraisal would be required. The appraisal turned out fine, but the process got scary and delayed as some phase two testing of the soil and water had to be completed. Fortunately, the results came back clean from the environmental company that Art recommended. “But don’t think that ended reasons to worry. Further delays by the bank continued my rollercoaster ride until the closing actually occurred. But at every turn throughout the process, Art was the voice of reason and a stabilizing force to all our concerns.” The closing took place in May 2012.
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Scope/Timeline of the Purchase Process “Once we met with Art and Jim and viewed the business and did our due diligence,” said Jeff, “we felt confident this was the business for us. Leaving my job and the people who I had worked with for so long there took a lot of thought on my part and was an ‘emotional rollercoaster’ for me, but I took the plunge. “But after my initial decision to purchase, I had strong second thoughts about leaving my job and, as a result, withdrew the offer,” he admitted. “But after five or six weeks of nights staring at the ceiling and thinking about it, I realized that my so-called job security could end anytime anyway…they could close down or lay me off…and I
really ought to take advantage of this opportunity.” The next challenge for the buyers involved the process of bank financing. “For a first-time buyer, having a broker involved to calm the nerves of both sides is definitely a plus. I found myself picking up the telephone to call Art and ask questions very often. He helped me out much more than the bank did. He even acted as a
communication conduit with the bank. Our experience with the bank was frustrating, with all kinds of issues, but eventually everything came together,” concluded Jeff.
Post-Sale Observations The buyers decided to retain the name of the business because of its solid reputation in the community. Jim said, “We maintain contact and are on good terms. After all, it’s still my name on the wall of that business and I want it to be a success for them.” Jim recommends to others considering the sale of their businesses to maintain patience during the process and have a business broker who can be counted on for charting the course. Jeff and Chris have each embraced the opportunity to “Be Your Own Boss.” Jeff said, “Much of the work I do now in my new endeavor is very similar to what I’ve been doing throughout my career…dealing with customers and suppliers and their specifications, providing quotes, handling telephone calls, and so on. I’m so glad that I made the
decision to buy the business, even if it took me awhile to make that decision.” When interviewed about the recent sale a couple of months after the closing, Jim was in a lounge chair under a shady tree sipping a cold beer. “I was initially a little concerned that the adjustment from the daily grind to a life of leisure would be a bit of a tough one,” Jim conceded. “But now that I’m doing it, I realize I adjusted pretty quickly,” he laughed. “Some serious travel and some serious golfing are in the future plans. I have to become adjusted to scheduling leisure time with as much commitment as I used to schedule work.” Buyers Jeff and Chris have many ideas for growing the business while maintaining the excellent reputation with customers built by the Hermansaders. “Our new advertising and customer appreciation marketing programs have captured new customers for us and we are delighted by that,” noted Jeff. “In addition, we’ve already added a new employee to handle the new business.” Chris is happy to be controlling his own destiny by owning his own business at a relatively young age and already has plans in mind for expansion of both the services provided and of the facilities. SO
Leveraging more than 30 years of experience as both an aftermarket business owner and aftermarket technology executive, Art Blumenthal LLC provides business intermediary and advisory services to both buyers and sellers of industry businesses of all sizes. Art is a member of IBBA (International Business Brokers Association, Inc.). For more information, or to initiate a no-obligation confidential consultation, visit www.art-blumenthal.com.
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November|December 2012
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Shop|Profile|
by Debbie Briggs, contributing writer
Oceanside Transmission Specialization And A Unique Business Plan Foster Partnerships With Other General Repair Shops While Oceanside Transmission has been in business since 1989, the way Owner Dean Kuhn does business hasn’t changed. Gone are the transmission-only shops of the past; to survive, a change in business model was a must.
“The transmission shop as we know it is gone,” Kuhn says. “My transmission shop in Oceanside is doing well, and it’s sad to say, but it’s because of the demise of the other transmission shops in my town. There were 11 transmission shops in 2008. It’s me and AAMCO now, and AAMCO’s
doing general repair. I think the stand-alone transmission shop is a thing of the past.”
Satellite Tranny Shops In an effort to expand his shop’s customer base, Kuhn formed Certified Transmission of San Diego, CA, and opened satellite transmission shops within other general repair shops throughout the county. The Certified Transmission Network includes eight shops throughout the county, and it features its own website and marketing plan. It’s a unique approach to growing his business, and it’s really paying off. “In Encinitas, I have a satellite shop at Brad’s Foreign and Domestic,” Kuhn explains. “I’m in the building with them, but we have a separate office. Their technicians do all of
Oceanside Transmission owner Dean Kuhn.
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the repair work. My Oceanside store is Oceanside Transmission, but it’s also Certified Transmission of Oceanside because the certified network is a main part of how we market ourselves. “Customers who need a transmission go onto our certified site and find a location, and then they book the appointment at that repair shop. If the shop needs a transmission or they need technical support, we send it to them.” Kuhn says his business is also thriving thanks to the business relationships developed with local repair shop owners outside the Certified Transmission Network, as well as with wholesale transmission shops. “We do work for all the general repair shops in our area, and we also supply transmissions, our own rebuilds and our own remanufactured transmissions, to all the cities, school districts, municipalities and military,”
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he says. “Being a specialist, what happens is the aftermarket will deal with us because we’re not their competition. The local general repair shop doesn’t really want to send their customers down the street to someone who’s doing the same types of repairs. And being a specialist has allowed us to team up with the wholesale business, as well.”
Feet On The Street In addition to long-time technicians and machinists, Kuhn says he also
employs outside salespeople, who do nothing but go out and “meet and greet” other area shop owners. “I try to bridge the gap between the general repair guy who is doing transmission work, but he’s not a specialist,” Kuhn explains. “Sometimes he gets in a rut, and we try to be his answer. If he wants to buy one and install it, we’re there for him. If he wants to take it out and have us rebuild it, we’re there for him. And if they don’t understand their diagnostic process or something along the way, we’re there for them. Once we’ve
done that for them a couple times, we usually have a pretty good relationship.” Oceanside Transmission also provides transmission work to retail customers, who usually find the business through the Internet, an important part of attracting customers who will most likely have the need for a new transmission once only in their lifetime. “Being a transmission shop, most of the retail people who come to us are new,” Kuhn says. “When they’re new, they’re looking for information; they’re looking to build credibility. They’ll investigate us. A good website is absolutely a must.”
Shop Appeal And First Impressions Kuhn also pays close attention to shop appearance. It’s everything, he says, especially when customers visit your
“I think the biggest thing we’ve done is having a transparent business between us and the employees, to where they really understand what needs to be done for the business.” -Dean Kuhn, owner www.ShopOwnerMag.com
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nist, , head machi Dennis Kosko er Dept. rt Torque Conve Henry Gonzalez, chassis technician Dennis Garringer, general manager, and Dean’s wife Kristal, the “boss,” who both run the shop day-to-day.
Bobby Bonnilla, customer service rep
Sam Floyd, on e rebuilders in th entire tranny re rter ue Conve ager, Torq rters). n a m , s n e e Josh Pick nzie Torque Conv le Dept. (Da Dennis Kuhl, shop foreman/diagnostician, and Certified Master Transmission Rebuilder.
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shop only a few times; it’s critical to make a good first impression. He was doing outside sales (and had opened up a place in Orange County) and found that whenever he would walk into a shop for the first time, he would Robert Ace
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chassis tec
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“the Cindy Bendle, l,” is in ga on si is sm tran e Reman charge of th ept. D on si is sm Tran lutions). So n (Drivetrai
rate it after he left. “Every time I found myself giving a shop an ‘A’ it was because of the curb appeal,” Kuhn explains. e of the best It inspired him to tr he country, he ansmission really focus on makads up the ebuilding de pt. ing the shop presentable for the customer. And since 1997, that’s what he’s done. “I have older buildings that are all www.ShopOwnerMag.com
from the ’40s and ’50s. We painted them a million times and finally said, let’s do something different,” he explains. “I have guys in my machine shop who are really talented, and we put a complete glass façade on our building. Then we put $55,000 into the office and customer waiting area. That was in ’98, and it still looks awesome.” Most of those talented employees have been with Oceanside Transmission for several years — as long as 17. Kuhn credits being open about business with helping employees to have a vested interest in the shop’s success. “I think the biggest thing we’ve done is having a transparent business between us and the employees, to where they really understand what needs to be done for the business,” he explains. “That, in turn, allows us to pay them better. I found when I shared my ideas and strategies — and the books openly — it seemed to really help them understand.” Tailored employee compensation programs, medical insurance and a healthy time-off package — starting at three weeks per year — all help attract and keep employees. “We don’t work Saturdays,” Kuhn adds. “One day is not enough time for employees to do their ‘honey-do’ list, get a nap in and play with their kids. Years ago, we went to Monday through Friday.” And that’s one thing Kuhn learned early on from working with Elite Worldwide, Inc. (an auto repair business sales and marketing solutions company, www.eliteworldwide store.com) — he knows how to hire the superstars. And, by empowering his people to have a vested interest in the company, turnover is one business concern that doesn’t affect this successful shop. SO November|December 2012
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Sales|Marketing|
by Rich White, executive director, Car Care Council
Car Care Council Vehicle Check-up Events Boost Customer Confidence and Help Shops Garner Unperformed Maintenance Opportunities More than 100 vehicles were inspected in October during the firstever consumer vehicle check-up event conducted by the Car Care Council in conjunction with the Northwood University International Auto Show in Midland, MI.
In celebration of October Fall Car Care Month, the council sponsored the event that provided free vehicle check-ups for consumers by professional automotive technicians from Belle Tire and automotive technology students from Delta Community College. Teams inspected 41 items on each vehicle including lights, fluid levels, belts, hoses, tires, filters, battery and other systems and components. “Clearly, the event provided a large and impressive footprint for the independent automotive aftermarket at the auto show and greatly enhanced the positive image of the service and repair profession,” said Rich White, Car Care Council executive director. “By all accounts, the event was extremely popular with
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consumers; most hoping the event will be held again next year,” White continued. Students enrolled in Northwood’s Automotive Aftermarket Management program and automotive technology students from Delta Community College had the opportunity to help operate the event with the Car Care Council, gaining firsthand experience talking
with vehicle owners, assisting with the vehicle inspections and participating in educational demonstrations about preventive maintenance.
Be Car Care Aware Campaign Each year during National Car Care Month in April and Fall Car Care Month in October, hundreds of consumer vehicle check-up events are hosted by repair shops, parts stores and distributors throughout the country. Car care month celebrations are an ideal opportunity for aftermarket businesses to tie in with national publicity that draws attention to the importance of regular vehicle care and maintenance. A repair shop can greatly benefit by conducting a free car care event that is educational and promotes goodwill in the community. Vehicle inspection events are not intended to be selling events, but rather non-threatening opportunities for consumers and technicians, shop and store owners and managers to interact. By strengthening community ties and reaching out to prospective customers, shops can increase traffic, sales and service. Car Care Month celebrations are just one part of the “Be Car Care Aware”
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campaign. The campaign is a consumer education program about the benefits of regular vehicle care, maintenance and repair, designed to provide knowledge from all segments of the automotive aftermarket industry. The campaign’s purpose is two-fold. First, is to provide consumers with unbiased, expert information to help them make better decisions regarding their vehicle maintenance, and offer them tools that make the process easy and intuitive. Second, reversing the trend in unperformed maintenance will aid in conserving energy, improving highway safety, benefit the environment and provide an economic benefit to both consumers and the aftermarket industry. To learn more about how to host a vehicle check-up event or to learn more about the Car Care Council and the “Be Car Care Aware” campaign, visit www.carcare.org. SO Rich White, MAAP, is senior vice president of the Automotive Aftermarket Industry Association (AAIA). He oversees the marketing/communications, membership, education and market research departments, and also is the executive director of the Car Care Council and the “Be Car Care Aware” campaign.
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