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The Puget Sound Dealer Official Publication of the Puget Sound Automobile Dealers Association 16101 Greenwood Avenue N Bldg 2100 Seattle WA 98133 Phone: 206 542-3551 Fax: 206 542-7561 Email: jim@psada.com www.psada.com
BOARD OF DIRECTORS 2014 President Steve Klein Klein Honda, Everett 1st Vice President Jim Walen Ford-Hyundai of Kirkland 2nd Vice President Dan Wilder, Jr. Wilder Auto Center, Port Angeles 3rd Vice President Marc Ikegami Doug’s Lynnwood Mazda, Doug’s Lynnwood Hyundai, Doug’s Northwest Cadillac Trustee Position #1 Vince Hanson Hanson Motors, Olympia Trustee Position #2 Mark Revord Revord Buick GMC Truck, Everett Immediate Past President Sara Carter Carter Subaru, Shoreline PSADA STAFF James R. Hammond Executive Director Linda Halverson Executive Assistant Susan Leonhardi Programs and Data Base Manager
A Message from the Editor Live Your Mission Statement and Make People First Many, many years ago I participated in a children’s conference for first grade and up. In one of the booths I saw a banner that said, “Your children may never remember what you told them, but they will remember how you made them feel.” I NEVER forgot that banner. At the WSADA Convention in Kauai this past May, Mark Canlis, owner of the world famous restaurant bearing his name, told the dealers during one of the sessions, something very similar. He said, “Our customers may not remember how we set the glass of water on the table, or how the meal tasted, but they will remember how we made them feel.” He went on to tell the story about seven daughters who flew in from different locations to take their mom, who had been diagnosed with three months to live, to Canlis for their last dinner. Mark said, “They trusted that their last dinner with their mom would be safe with Canlis.” His comments just resonated in my mind over and over. What can be more important than having the trust of your customers because of what you do? Canlis’ first and most important purpose is to create unforgettable moments for their customers with exceptional, endearing, noticeably caring, unexpectedly, perfect class. Mark said you have to live your mission statement and make people first. He said, “People come back to class, not food or service. They trust us with their money.” There is even more to the Canlis magic. The magic starts with the employees. Mark said, “People come to us because of our brand. Word got out how great it is to work for us.” His advice, focus on your brand and good people will come to you. Invest in them. I was impressed that Canlis always asks employees what they want to become. The chef? Okay. Let’s work on that. They purposely, sincerely, and appreciatively nurture their people. They meet every week with their leaders to decide how they can best grow their people. They have a Department of Growth and Appreciation. Big Ideas get rewarded. All this can happen in your dealership. Mark said that dining at Canlis and selling a car are the same. It is about how you make people feel. People need to know that they can trust you. You build that in your team. EVERYONE is part of the team. Do the people in your store feel like they are part of your team? How do you make them feel? If you have people working for you that trust you with their lives, then you will have customers lining up to get into your store just because of what you do! Oh, yes! Yes, indeed. This is all so true!
Michele Foley Administrative Assistant
James Hammond Executive Director
Inside this Issue
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For information on advertising in this publication contact Jim Aitkins Blue Water Publishers, LLC 360.805.6474 www.bluewaterpublishers.com
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Message from the President - Steve Klein
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I-9 Audits - Is Your Dealership Ready?
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Top Estate Planning Mistakes
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Increasing Turnover - Identifying, Releasing and Re-Investing Your Frozen Capital
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Mike and Scott Blade - A 100+ Year Legacy
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Working With the “Best People” Around You
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Automotive Trending in Shopping, Test Drives, Dealership Revenues and Advertising
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Next Generation of Auto Techs Coming to You with ASE Certifications in Hand
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Films, Films and More Films! What Are They and What Your Dealership Needs to Know About Them
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Washington Law Against Discrimination- Accommodating Religious Beliefs
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The Telephone Doctor: Business Friendly Customer Service
Preparing for the road ahead should feel this good.
Work with Peterson Sullivan and experience the difference. Our proactive approach makes tax savings a breeze. Did you know the IRS issued new regulations on repairs and depreciable assets that contain favorable opportunities for dealerships? These changes create an opportunity to significantly reduce your tax expense. By reviewing fixed assets and adopting these new rules now, your dealership can take advantage of these new benefits.
Confidence earned. pscpa.com
Tax advice that’s this good is like driving with the windows down! 5
Knowing your business is our business. Every dealership has unique legal needs. At Ryan Swanson, we pride ourselves on not only being great listeners, but in truly hearing what is affecting dealer businesses. By understanding your business goals and the auto industry, we are more than trusted advisors—we are collaborative partners. It’s with this collaborative style that we have built a lasting trust with auto dealers in the Puget Sound for over 20 years.
Humanese Over Legalese.
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206.464.4224 | www.ryanswansonlaw.com
Message from the President
Steve Klein Klein Honda
Did you know?? My astonishing experience seeing what happens at the Professional Automotive Training Center at Shoreline
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In May, because of my current position as the President of PSADA Board, I was asked by Shoreline Community College to be part of Governor Inslee’s visit, and to take the Governor on a tour of the Professional Automotive Training Center (PATC), located on the Shoreline Community College campus. I agreed to do so. Prior to the Governor’s arrival, I was briefed
the Puget Sound region were responsible for raising around 9 million dollars, in two capital campaigns, to build the PATC. The PATC, dedicated in 1992, was the nation’s first model new car dealership built on a college campus. The original facility was approximately 32,000 square feet. Then, as many of you will remember, in 2008, PSADA and Shoreline Community College entered into a capital campaign to add an additional 28,000 square feet of training space to the Center. The facility is a beautiful, clean, modern, up-to-date training center serving the new car dealers in the Puget Sound Region, as well as all of Washington, Oregon, Idaho, Montana and Alaska. It was built by the dealers for the dealers! I think some of the pioneers of the PATC, such as Chuck Haselwood, Larry Norton, Stan and Fred Nelson, Biff Brotherton, and others, would be proud if they could see what their idea looked like today. This Center is truly serving the training needs of our dealers.
The PATC is the Training Arm of the Dealers Association The one thing that separates this program from any other in the State or nation is that the Puget Sound Governor Jay Inslee and PSADA President Steve Klein at the PATC. (photo by Jim Hills) Automobile Dealers Association is co-located in the PATC. The PATC is the training arm of the by the College on what happens at the Professional Automotive dealers association. Training Center. I came away impressed and astonished at just At the PATC are four factory-specific training programs what “does” happen at the PATC. to help develop new, highly trained and certified auto service First of all, I was once again reminded that the dealers in technicians. These programs include the General Motors ASEP 7
Program, the Honda tion training in the PACT Program, Toyota Hunter Training room. T-TEN Program, and Students are learning on the Chrysler (MOPAR) the latest type of equipCAP Program. These ment. programs place students in our dealerships GST Provides that alternate between Students to Dealers attending college and Whose Manufacturers working in the dealerDon’t Have College ships for two years. Training Programs The instructors are all Another program I saw award winning, factory was the General Service certified instructors, Technician Program who provide current, (GST). This program is relevant training to our for students with high technicians. I have interest, but low skills. Governor Jay Inslee, PSADA President Steve Klein and Shoreline Community hired many Honda Many of these students College Board of Trustees Chair, Shoubee Liaw at the PATC. (photo by Jim Hills) PACT students over the have English as their years and they are a real asset to our service department. second language. This is a one year program. After completing the GST Program a large number of these students go into one PATC is Major Center for Dealership Tech Training, Too! of the manufacturer’s automotive service training programs. I also found out that many of the major auto manufacturers Many others are currently working in Volkswagen, Audi, conduct their training at the PATC. In fact, between 6,000 and Hyundai, Subaru, and other dealerships, thus supporting dealers 8,000 dealer technicians attend classes at the PATC annually. whose manufacturer does not have a college training program. As dealers, many of us no longer have to send our technicians I came away from the day really impressed with what we, out-of-state to receive their training. They can get their training as dealers, have done to address the training needs of the area’s locally at the PATC. General Motors and Toyota have permanew car dealers. This Center is unique and one-of-a-kind nent training centers in the PATC. nationally, and it is there to serve the dealers’ training needs. I The PATC has won numerous awards for excellence over was informed that Shoreline Community College is forming the years. Most of the faculty have received local, regional and a board of dealers to oversee the Center and provide input to national awards for their teaching excellence. In fact, at one the staff and training center director. The College is currently point President Clinton visited the Center. All of the autosearching for the new director and hopefully will be making an motive faculty are factory-trained and certified. As a result, announcement soon regarding this position. I think what the our student technicians receive factory certification for their dealers have created in the PATC is the best kept secret in the training at the PATC. When these students come to our dealerstate. I am thinking what the Center has to offer us as dealers ships they are already certified. We do not have to bear the might also be a secret. I would encourage you, as dealers, to expense of getting them certified, which saves us thousands of use the Center for your training needs. If you are looking for dollars in training expense. There were many new cars in the technicians, you might want to contact the Center. It is a great Center, donated by the auto makers, for the students to work on. way to “grow your own” highly trained and certified techniThe training they are receiving is current and the products they cians. are training on are the latest models. I believe that we, as dealers, can and should be proud of what we have created through the partnership between PSADA PATC Has Partnership with Major Companies like and Shoreline Community College. It is unique nationally. I Snap-On understand that 60 colleges from across the country have come The College also has partnerships with companies such as to study what happens at the PATC. Two colleges have repliSnap-on Tools, whose Innovation Works Center is located cated the Center – one in Florida and one in California. This is in the PATC; and Hunter Engineering who has its training our training center. We designed and built it. We need to use it center in the PATC. Hunter has the latest in alignment, wheel and provide the input and direction needed to serve our training balancing, and tire equipment located in their Hunter Training demands. Center. The students in the PATC do their undercar certifica8
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I-9 Is Your Dealership Ready
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U.S. Immigration and Customs Enforcement (ICE) has focused on creating a ‘culture of compliance’ by heavily relying on I-9 inspections to find and fine Employers who do not follow immigration laws regarding employment eligibility verification. Immigration law (8 U.S.C. § 1324a (b)) requires employers to verify the employment eligibility of each employee by completing and maintaining Form I-9. ICE’s Homeland Security Investigations (HSI) unit can audit any company on a random basis or by following a lead from the public, other businesses, disgruntled employees at the workplace, or through tips from other government agencies. The number of businesses subjected to I-9 audits has soared from 250 in 2007 to more than 3,000 businesses audited in 2012. HSI continues to issue Notices of Intent to Fine (NOFs) at an unprecedented rate for Form I-9 related violations. It is imperative to know your rights if you are confronted with an I-9 audit. If ICE appears to review your I-9 forms and conduct an audit, insist on a written Notice of Inspection and your right to have three business days before you turn over your original I-9 forms. Be prepared by conducting a self-audit of your I-9s now and create and maintain a culture of compliance within your business! Hire knowledgeable Counsel to conduct an internal I-9 audit and self-examination of your systems, operating procedures, and present practices for handling I-9s.
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By Marsha T. Mavunkel Ryan, Swanson & Cleveland, PLLC
I-9 Audit Basics—What to Expect: • Employers will learn of the inspection through a Notice of Inspection (NOI) and Subpoena requiring them to produce I-9s and supporting business documentation (such as payroll records, list of employees, Articles of Incorporation, and business licenses). •
Employers are typically given three days (72 hours) to produce the stated documents in the audit notice.
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If technical or procedural violations are found, the Employer will be given 10 days to correct them.
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Substantive violations, such as failing to produce I-9s, as well as technical violations that are not corrected within the 10-day limit, will be subject to a fine ranging from $110 to $1,000 per violation.
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Penalties for violations tied to knowingly hiring and continuing to employ or unlawful discrimination of employment authorized individuals range from $375 to $16,000 per violation.
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ICE considers five factors in determining penalties: the size of the business, good faith effort to comply, seriousness of violation, whether the violation involved unauthorized workers, and history of previous violations.
Best Practice Tips: • Establish a uniform written I-9 compliance policy and train your staff on it. Utilize the recent version of the I-9 Employer Handbook (M-274, Rev 4/30/13). •
Avoid discrimination claims by educating your staff on the appropriate way to verify documents and treat all job applicants the same regardless of their citizenship or immigration status, or their national origin.
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Put in place a “tickler” system to notify HR staff of upcoming re-verifications for individuals who possess temporary employment authorization.
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Establish a best practice method for proper cataloging and retention of I-9s—separate former and active employees’ I-9s.
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Keep your I-9 forms organized and separate from general personnel files. Establish a consistent policy regarding obtaining and retaining copies of documents verified.
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Purge old I-9s that are past the retention period on an annual basis (three years from date of hire or one year after termination, whichever is longer).
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Conduct routine formalized self-audits and document each internal audit. Hiring legal counsel to aid in this will help your organization with a structured approach to auditing and compliance.
It is likely that the movement toward increased scrutiny of I-9s will continue to increase in the future. There are a multitude of factors that may motivate HSI to target a business for an I-9 audit. Business should not assume that only those with a large foreign national workforce should be concerned about maintaining a culture of compliance within their workplace. Resources for I-9 Questions: • Employer Handbook: http://www.uscis.gov/sites/default/files/files/form/m-274.pdf •
Website: http://www.uscis.gov/i-9-central
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Email: I-9Central@dhs.gov (general I-9 questions) or osccrt@usdoj.gov (unfair immigration-related employment practices and discrimination) 11
Ron Nagle Partner Peterson Sullivan LLP
Top Estate Planning
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Work with Peterson Sullivan and experience the difference. Our proactive approach makes tax savings a breeze.
Did you know the IRS issued new regulations on repairs and depreciable assets that contain favorable opportunities for dealerships? These changes create an opportunity to significantly reduce your tax expense. By reviewing fixed assets and adopting these new rules now, your dealership can take advantage of these new benefits.
Mistakes
Confidence earned. pscpa.com
Tax advice that’s this good is like driving with the windows down!
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ealer Ad FINAL.indd 1
You have worked hard to achieve financial success. What is the legacy that you want to leave behind? Without a customized and personalized estate plan your financial legacy will be decided by others. The goal of Estate Planning is developing an effective and efficient process for the administration and distribution of an individual’s assets according to their wishes. The good news is that most estate planning mistakes can be avoided if you are willing to put forth some effort with the assistance of your CPA and attorney. These are some of the most common mistakes. Not reviewing or updating your will and other estate planning documents regularly Read the dispositive provisions of your will. This is where you have provided instructions for the distribution of your estate after you have passed away. Is it current according to your wishes? I recommend that you review your will and related documents every five years or sooner if any of the following have occurred: 1. The birth or adoption of a child 2. A significant change in your wealth or one of your beneficiaries 3. You move to another state 4. The marriage, divorce or death of anyone named in the will 5. A major tax law change 6. Any major change in the needs, circumstances or objectives for you or your beneficiaries Thinking that equal distribution of the estate is the same as equitable Most parents want their children to share equally in the estate assets. A common problem is when a person owns a business in which some of the children participate. Giving both participating
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and non-participating children equal shares of the business is a near guarantee for disaster. Consider also two children, the oldest is a financially successful business owner and the younger child has severe learning disabilities. Their needs and circumstances are not the same. Should each child receive the same amount? With advance planning, a customized solution can be developed for your specific family needs. Not using Gift & Estate Tax planning strategies For 2014 you can gift up to $14,000 to any individual. If you have three children then you can gift them each the “annual exclusion” amount for a total of $42,000 (3 X $14k) for 2014. You can pay unlimited amounts for tuition and medical expenses for family and non-family as long as you pay it directly to the provider. (You cannot reimburse the individual after they pay the expense.) The “tuition and medical exclusion” is in addition to the annual exclusion. For 2014 the federal estate & gift exemption is $5.34 million per person. The State of Washington estate tax exemption is only $2.012 million per person in 2014. Like most of tax law, the rules for gift and estate tax get complicated quickly. It is imperative that you sit down with your CPA and attorney to determine the how to best utilize these and other strategies based on your specific situation, goals and values. Not understanding Portability Portability is useful for couples who do not have wills, or if the will leaves everything to the surviving spouse outright. With portability, the surviving spouse can claim the first deceased spouse’s unused federal estate and gift tax exemption, thus allowing for the maximum use of both spouses’ federal estate and gift tax exemptions (see the amounts above). There are many drawbacks to its use. Portability is NOT available for Washington State estate 13
taxes. For couples with a current net worth over $2 million (or believe they will exceed that amount in the future), they should consult their CPA and attorney to achieve the desired result for federal and state tax purposes. Not understanding how JTWROS and beneficiary designations impact the estate plan Most people believe that their will controls the disposition of their assets when they pass away. Bank accounts, brokerage accounts and even real estate are frequently owned as “Joint Tenants with Rights of Survivorship” (JTWROS). The surviving tenant will become the owner after the death of the first tenant. Retirement accounts, life insurance benefits, annuities will be paid out to the named beneficiaries… not necessarily the same as what is written in the will. Naming the wrong administrator in the estate documents Selecting the incorrect administrator (personal representative, executor or trustee) can be a disaster. The primary duties include: 1. Collecting all of the assets 2. Paying all of the debts and expenses 3. Distributing assets to the named beneficiaries The duties seem simple enough. In reality it can be very complex, time consuming and extremely stressful. Choosing one of the beneficiaries as the administrator may result in a conflict of interest. Selecting an administrator that does not get along well with the family members can create more havoc. Sometime the best solution is to use an independent third party administrator. “Trust Companies” provide this service acting alone or working as co - administrators with a family member. This is an extremely important decision and should be well thought out including naming alternates. Procrastination Sadly this plays out too frequently. The reality is that over 50% of the adult population does not have current estate planning documents. If you have not created a plan for you and your family, state law has created one for you. If you have minor children these same state laws will govern who will be chosen as their guardian. Regardless of your net worth or age everyone needs estate planning to some degree. Conclusion It’s great to start early in life with developing your estate plan, but it is never too late to start or update your estate plan. If you passed away suddenly tomorrow, would your current estate plans give you the result that you want at an acceptable cost? If no, call your CPA or attorney today to assist you in moving your plan forward. If yes, congratulations, and pass this article onto someone that you care about. Ron Nagel can be contacted at Peterson Sullivan at magle@ pscpa.com, or by phone at 206-344-7539. 14
By Scott Dreisbach
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It is no secret that the single largest consumer of your “net working capital” is likely to be your used vehicle inventory investment. Unfortunately, and for reasons I will never understand, this investment generally has the fewest controls, checks and balances, and is likely to be one of the few inventories owned by the dealership that is not “actively managed” on a daily basis with an inventory management system. The results of this lack of controls and no real inventory management system creates for many stores a large amount of “frozen capital.” Have you ever had to “cash” some vehicles to make payroll? Are any of your used vehicles floorplanned? Do you seem to experience more “wholesale pain” than you think you should? Do you wish you really knew what your “lost sales” of used vehicles are? Do you think you would gross more if you had a different mix of inventory? If the answer to any of these questions is yes, it is likely that your store has frozen capital that needs to be objectively identified, released and re-invested. Besides the real estate, your two largest recurring cash investments are likely to be used vehicles and parts. The average franchised automobile dealership today has a parts inventory investment that is somewhere around the $400,000.00 area. The average cost per piece is around $38.00. Dealers would not even consider for a moment not having a system that allows the manager to phase in what he/she needs and phase out what they don’t. The various inventory management systems are based on many indicators –primarily demand and movement – and can quickly tell the manager many things they need to know to make inventory decisions including rate of turn, gross profit as a percentage of sales, return on investment, stocking guides, seasonality, and many more. We not only hope, but expect, to turn this inventory between four and six times per year. Turning a $400,000 parts inventory six times per year at 25% of sales as a percentage of gross profit means that the gross return on
INCREASING TURNOVER Identifying, Releasing and Re-Investing your
“FROZEN CAPITAL”
inventory investment would be about 187%, or nearly 16% per month. These numbers are real, achievable, and happen in a lot of dealerships because of diligent and daily inventory management. Having the right part on the shelf at the right time is one of the keys to making this happen. The hardware and software costs for parts inventory management typically fall into the $2,500.00 per month range. You also have hopes and expectations for your much larger cash investment-used vehicles. In reality, the math here is quite different. The average cost of used vehicles inventoried at franchised automobile dealerships today is nearly $14,000 per unit. It is not unusual for a dealer to have 100 (or more) units in inventory, or a total investment of $1,400,000.00 Assuming this inventory is a 60 day supply (six turns per year), the following is true: 100 unit inventory, 60 day supply = retail sales of 50 pieces per month. Fifty per month times front end gross of $2,000.00 = $100,000.00 gross per month or $1,200,000.00 per year. Gross return on inventory investment then calculates to 85.7% per year or 7.14% per month – slightly less than half the return that your parts inventory generates (not to mention wholesale losses). To improve upon this indicator, you have three choices: 1. Keep the same gross while reducing the investment. 2. Keep the same investment and increase the gross. 3. Reduce the investment and increase the gross by increasing turnover. This can only happen by having “more” of the “right stuff” on your “shelf” more of the time, and by paying strict attention to diligent inventory management. The quicker the turn, the higher the gross, and the investment required to do it becomes less. It is relatively simple – stock more of what your customers are looking for and your investment will become more active. A more active investment means quicker turnover. Unfortunately, most dealers rely on their managers who
continuously claim such things as: “I know what sells and what doesn’t,” or, “I just need more customers,” and similar phrases. Have you ever changed used vehicle department managers and were told that your inventory was all wrong and you really needed to start over? Everybody has an opinion. Often times they aren’t the same. You need to have your investment managed by objective facts, not subjective opinions. Most used vehicle department managers are also largely resistant to inventory management systems. I have heard all the excuses. “I can’t control what comes in on trade,” or “Yes, I know I need some of those, just dial 1- 800 used cars and order me some,” or “No computer can manage my inventory better than me.” Perhaps it is because they generally fear accountability. I really don’t understand the resistance to something that will increase their personal W-2’s. Let’s face it, this is a sizeable investment portfolio. This department often determines whether we make a net profit or not. The bottom line is that most dealerships need an inventory management system. There are many good ones out there. Mine is one. Most all are less expensive than what you are paying for your parts inventory management system. Do yourself a favor! Commit to making a change in your used vehicle department and install an inventory management system. Demand that the process is inviolable. Monitor its use and progress at least once a week. You will be glad you did. When it is running properly, and decisions are being made by the numbers, not by emotions, you will be turning your used vehicle inventory between nine and twelve times a year. The numbers you can achieve will amaze you. It is not likely that you will begin achieving different results without changing current behavior. If you would like more information, please feel free to contact me anytime. Scott Dreisbach-Vice President,Valuinsight, Inc., sdrize@ valuinsight.com, 561- 368 -7810 x108, www.valuinsight.com 15
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Photo by Adam Buchanan
Scott and Mike Blade
By Craig Chastain
Mike and Scott Blade
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A 100+ Year Legacy Yesterday, Today and Tomorrow
Driving into the Mt. Vernon dealership of Blade Chevrolet, the first thing one sees at the base of their welcoming sign is the prominence of the name Walt Blade. It is a name that was, and is, a northwest automotive icon and its perpetual presence says much about the Blade mission and motto: Yesterday, today and tomorrow. “Our great grandfather Carl was the pioneer,” says owner Mike Blade, “but it was Walt who was always the soul of Blade Chevrolet.” The legacy began over a century ago. The year was 1913 and Carl Blade was operating a blacksmith shop in the small waterfront town of La Conner. Observing that his horseshoe business was dwindling due to the rising popularity of the “horseless carriage,” Carl wisely transitioned from horses to automobiles and was soon selling the Ford Model A. “Carl saw the writing on the wall,” says Scott Blade, Mike’s brother and co-owner. “He brought the Blade family in on the ground floor of the car business.” The fledgling dealership grew and flourished, and in 1929 Carl made three historic decisions: (1) he moved the business to Mt. Vernon to have access to the railroad, (2) he settled on Chevrolet as his exclusive product line, and (3) he brought his son, Walt, newly graduated from the University of Washington, into the business.
Walt turned out to be a natural – a savvy businessman and community leader who grew the dealership through extraordinary customer service and a love of people and cars. His passion was passed to his two sons: Karl, who operated the Mt. Vernon store for 17 years, and Bill – father to Mike and Scott – who built on the Chevy-Blade gene pool at the Spokane dealership of their maternal grandfather R.G. “Buck” Buchanan before returning to the Skagit Valley in 1980. “Hardly a day goes by that someone doesn’t share a positive story about our dad or grandfather,” says Mike. “Walt and Bill showed us that customers can and should be an extended family.” Both Scott and Mike graduated from Eastern Washington University and settled quickly into learning every aspect of dealership operations. This was no small task: the Blade business is one of the most comprehensive in the Northwest, with new and pre-owned vehicles, service and body shops, a Business Elite fleet division and a recreational vehicles department. Their service operation, which services all GM brands, has captured the AAA “Top Shop” Award for the past eight years, and they were the only Washington dealership to be awarded Chevrolet’s Mark of Excellence in 2013. For 14 straight years they have been voted the “People’s Choice” award for the Best Auto Dealer in Skagit County. The brothers credit a committed and gifted staff for the recognition and success.
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“We’re blessed with a team that’s committed to excellence,” says Scott. “Whether it’s training or goal setting or customer service, it’s a matter of pride to everyone here.”
and colleges, hunger and housing support groups, service clubs, performing arts, hospital foundations, first responders, and, of course, the Skagit Valley Tulip Festival.
The current staff of about 70 boasts a number of people with tenures of 30 years and more. One man who still works part-time likes to remind the Blades that he has been around longer than they have.
“For us, it’s the easiest thing we do,” says Mike. “Walt showed us the example – to give back to the communities that have allowed us to flourish for 101 years.”
Mike Blade
Part of the appeal, of course, is the beauty and livability of the Skagit Valley. Located 35 miles north of Everett and 30 miles south of Bellingham, Blade Chevrolet draws customers from a vast area and, for pre-owned vehicles and RV’s, from Canada. They reach the market through some traditional methods – radio, print, direct mail – but it is the Internet that has turned their business in a new and positive direction. “These days, the vast majority of car buyers have searched online and pretty much Scott Blade know what they want in a car or truck,” says Scott. “They’ve seen the vehicles on our website but they still want to see them up close and personal. It’s been the combining of technology with old fashioned customer service and a family atmosphere that’s been the key to our growth.” Another source of brand recognition comes from participation and support of charities and community events. Scores of non-profits have benefited from Blade giving, including the Boys & Girls Clubs, youth baseball and soccer, area schools 18
Is there another generation to follow in the family business? Scott and his wife Jo Ann have four children (Dalan, Chelsey, Tyler, and Brannigan), each of whom has spent time at work in the store. Mike and wife Vicki have two adult sons – son Cooper is at school in Germany and Alex is currently on staff. “Time will tell if our children eventually make this their career,” says Mike. “I know there was a time when I said I would never…ever…ever get in the car business.”
Photo by Adam Buchanan
“Pete likes to point out that he’s been in our service department longer than I’ve been drawing breath,” laughs Mike. “There’s a lot of longevity and loyalty with this team.”
Scott agrees. “When we were kids, we’d come into the store and think ‘this is so boring.’ As it turned out, that was just Walt and Bill making it all look easy.”
“No question - there’s plenty of excitement to go around,” adds Mike. “We’ve got the gray hairs to prove it. But it’s still one of the greatest job in the world.” Walt Blade, whose name will always be on the company sign, would surely agree.
Stop letting your write-offs ride off. Is your dealership taking advantage of all the tax deductions and deferrals it’s entitled to claim? From new tangible property regulations to changing state and local tax incentives, opportunities abound for you to keep more of your money—and accelerate your dealership’s cash flow.
We’ve been helping businesses ease their tax burden for more than a century. Put our knowledge to work for you. W W W. M O S S A D A M S . C O M /A U T O M O T I V E
Tax Audit Fraud Detection & Prevention Dealership Valuations Management Succession Ownership Transition
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By John Strom Strom & Associates
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Working With the “Best People” Around You
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This is the third in a series of columns discussing how to hire the best people. I began by saying that the best people will only be attracted to (…and, as importantly, stay in) the best job. Because they’re the best – top performers in their chosen profession – they expect the best of everything. I identified six “bests” to consider in creating the best job: 1. pay and benefits; 2. working conditions; 3. management support; 4. working with the best people; 5. working for a company with a great reputation for customer service, leadership in the industry and community service; and 6. working with the best products and services. Previously I discussed why best pay and benefits is important and addressed working conditions and management support. This time I’ll talk about why the best people only want to work with other “best people.” What do we mean by the “best people?” The best people are top performers – they get more done, they sell more, they make you more money and, importantly, they are the easiest to work with. They do business in a way that produces the best results over the long run. They understand the value of repeat
and referral business. They respect their fellow team members and their customers/clients. They “fit” in your organization and work for the betterment of the whole, not just themselves. The best people I’m talking about here do not include high producers who can be “difficult to work with” or serve their own agenda over the company’s. The best are team players, who look to help their fellow team members be more successful, too. They take initiative; they don’t need to be asked. They readily do things for the better of the whole as well as themselves. Working with less than the “best people” drains “best people” Why is it important to surround the best people with other best people? Because when the best have to work with those who aren’t it drains them. It saps their energy, their initiative, their productivity. It’s tough to continue to perform at your best when others around you aren’t working at their best. One of the biggest drains is the time and energy spent complaining (…usually to other best people) about the lack of initiative and output of less-than-the-best associates. Nothing good comes from this, yet a lot of this goes on in organizations where management isn’t dedicated to having only the best people working there. For example, sales consultants who see the value in building strong client relationships that will yield repeat and referral business are debilitated when they see others act is ways that undermine this approach. Technicians who are both
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efficient and effective are brought down watching others who lack the same dedication and competence. Managers who see other managers not fully doing their job can have trouble continuing to perform at a top level. The “best people” bring out the best in people! In contrast, the “best people” tend to bring out the best in the people they work with. They set the standard. They demonstrate how to do the right things right. And they provide the positive work environment that great organizations seek. When “best people” work together they can create a synergy between them that results in even higher levels of achievement. If two heads are better than one, then two “best heads” are really better! And when a whole work team is made up of “best people” the results are often astounding! Put two or more “best salespeople” or “best technicians” together and they can produce far more than each produces individually. The “best people” know where they’re “best”…and where they aren’t One additional benefit of working with the “best people” is they tend to know what work they do best and take full advantage of their strengths. They also tend to know where they aren’t as strong – what their potential weaknesses are and how to work around them. They also are the most open to coaching and personal development – anything they can do to be even more effective, more efficient. Coaching them is typically focused on taking good to great – maximizing already excellent performance. This is the kind of coaching that’s the easiest for managers to do (…and therefore they’re more likely to do it) and will produce the greatest gains. And when managers don’t have to deal with performance problems because they have the “best people”, they can focus on this type of coaching. It’s all good! How do the “best managers” encourage the “best people” to perform at their best? Great managers must know what work their people do best – where they’re the most productive – and what work they’re less productive doing. They work with each team member to achieve their best results in their own unique way. They understand how to engage each team member so they consistently produce their best work. The best people respond to managers who encourage, teach and coach.
The best managers know how and when each team member likes to be recognized and rewarded. They know specifically what they appreciate and respond to; what motivates them to do more. They take advantage of the many opportunities the “best people” give them to recognize and reward their achievement.
Obviously, the more positively you can answer each of these questions the more likely you are to have the “best people” working with other “best people.” To summarize what we’ve discussed so far… When you pay the best you get the opportunity to hire the best people, so be the leader for compensation in your area. Provide working conditions that allow for the best productivity. Try as much as possible to only have “best people” working together with other “best people”. And manage people so that every day they get to do lots of what they do best. John Strom has been helping retail automotive managers improve their performance for over 25 years. He has held a number of management positions in both single-point and multiple franchise operations, including General Manager. His company, Strom & Associates, is a member of the Performance Development Group. To learn more about their services, visit www.perdevgrp.com.
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The More Things Change, The More They Stay the Same
Automotive Trending in SHOPPING TEST DRIVES DEALERSHIP REVENUES ADVERTISING
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There is an old saying that says “The more things change, the more they stay the same,” which is really an observation that turbulent changes do not affect reality on a deeper level other than to cement the status quo. Or, more simply put, changes do not impact reality on a deeper level. Think about the automotive buying process and television advertising over the past ten years. Most likely you learned about different makes and models when you saw them in TV commercials. The national manufacturers also ran glossy magazine ads and your nearest dealership ran ads in the local newspaper. But, you could only get so much information about your vehicle options from the available media. You also used to go out and visit a number of car dealerships to narrow down your vehicle choice. Today the process has changed drastically; yet one medium always delivers that message of that new model flying around a mountain corner or cityscape better than the rest, and still reaches the largest groups of in-market consumers – TV.
By Jeff Kent Business Development Manager Comcast Spotlight – NW Region
So what things have changed but have stayed the same? Let’s dive in and take a look at some evolving trends in the automotive category and then review how impactful TV advertising can be to score your next big sales month. Evolution of Car Shopping & Test Driving Trends1 In May I came across a nice study completed by DME Automotive, a research and marketing firm headquartered in Florida that focuses on science-based, results-driven automotive marketing, and provides turnkey marketing to some of the largest and most innovative automotive organizations, from automobile dealerships to many of the largest aftermarket companies in the U.S. DME developed a study based on their own internal surveys, JD Power, Kelly Blue Book, NBC Universal and a McKinsey report and came up with some very interesting trends in the evolution of car shopping and test drive trends. While an automobile purchase may be the second most expensive purchase of most people’s lives, their study reveals that a growing number of Americans are bypassing test-drives
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– and making strikingly few visits to dealerships – in their carbuying process. Here are some highlights: •
Test Drives: According to JD Power’s latest survey of roughly 2,000 automotive consumers it was determined that, before purchasing, 16% took no test-drive, and 33% test-drove only one car. And more than two-thirds (68%) reported that they visited only two dealerships or fewer before buying - with 40% visiting only one dealer.
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Dealer Trust: The survey also measured consumer trust of dealer salespeople, and the results were sobering: only 21% claimed they perceive them as “trustworthy,” a lower trust rating than reported for lawyers, mortgage brokers and insurance salespeople.
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New Cars: Kelly Blue Book 2013 data reports that the average new vehicle may cost a record $32K+, but roughly half (49%) of buyers report only test-driving one (or no) vehicle before purchasing their latest vehicle. On average, car buyers test-drive only 1.9 cars pre-purchase, with just over a quarter (26%) test-driving 3 vehicles or more. Used Cars: Conventional wisdom is that used-car buyers at dealerships take significantly more test-drives (as each vehicle is unique), but the DME study reveals that is not the case: 30% of used buyers test-drove only one vehicle (vs. 35% of new buyers) – and a greater percentage of used buyers (18%) than new (14%) reported taking no test-drives. Young Men Likely to Test-Drive -- Women More Likely to Avoid: Car buyers under 35, who may be more enthralled with the newness of the car-purchasing experience, are slightly more likely to take test-drives and try out more vehicles. For instance, 57% of those under 35 test-drove more than one vehicle (vs. 48% of those over 35) – and 33% test-drove more than three (vs. 23% of those over 35). But women, who influence 85% of all car purchases according to NBC Universal, were bigger test-drive avoiders: 19% skipped it altogether, vs. 12% of men. Fewer Dealerships Visited Pre-Purchase: The survey found that 68% of car buyers visit two dealerships or less – and only 15% visit four or more – before buying. Overall, car buyers only visit 2.2 dealerships. So, this new DME data confirms recent industry research like that from McKinsey that found that car buyers visit 1.6
dealerships before buying – plummeting from 5 just a decade ago. While the DME study does not cover every last detail of the multiple layers in the automotive purchase cycle, I thought it was newsworthy even to share. My major conclusions were that in the ever-growing world of the commoditization of automotive pricing it is more evident today to brand your dealership as having the best selection and fair priced vehicles so you can satisfy these consumers that want to pick a car and drive home without much physical shopping or test driving. I also think this study points out a need to continually communicate why your dealership and sales people can be trusted by a dynamic range of automotive consumers. Dealership Revenues at an All-Time High2 The National Automobile Dealers Association (NADA) has released its annual report on members’ business, and for the average dealership, results have never been better. I thought I would summarize what I see as the highlights: •
Franchised new-vehicle dealerships sold 15.5 million units last year, with the average dealership producing $41.3 million in revenue, which was an 8.8% gain over 2012. Gross profit on average was $5.5 million (up 6.2%), while net profit rose 10.5% to $923,248. Dealer expenses were up 5.4% to an average of $4.616 million.
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Growth in the total numbers of dealerships was minimal, only a net of 30 new stores nationally out of a total of more than 17,000. But there was a noticeable trend towards bigger stores – the numbers of small dealers (0-149 units and 150-399 units in yearly sales) each fell, while the numbers for the groups that sell 400-749 units and 750+ each went up.
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New vehicles accounted for 57.1% of dealer revenues, with used vehicles producing 31.3%. The average selling price of a new vehicle rose from $30,910 in 2012 to $31,762 last year, while the average sale of a used vehicle was up 3.2% to $18,111. Dealers continue to get most of their used vehicle inventory from trade-ins – 41% of inventory for resale came from trade-ins on a new vehicle purchase while another 25% came from customer trade-ins as they traded-up to another used vehicle. Auction purchases accounted for another 25% of dealer used inventory.
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Sales for service, parts and the body shop produced $4.78 million for the average dealership last year, up 5% from the year before. Despite a trend a few years
TV is Still The King of Advertising
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back for dealers to pool body shop work, the percentage of dealerships that now have on-site body shops rose from 34% in 2012 to 36% last year. The NADA also notes dealers performed $14.4 billion of warranty work last year at no cost to the customer – that’s a number that’s likely to skyrocket this year. •
Television is the second most-heavily used advertising vehicle for dealerships, with the Internet first.
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TV took 20.8% of the ad budgets of dealers, but the Internet has grown to fully one-third of their spending. o Looking at all dealerships, the average TV spend amounted to $97,657, but for dealerships that sell 750 or more vehicles yearly, the average TV buy was $162,376.
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During recent years the number of channels has grown along with the number of video channels on alternative screens. But fragmentation withal, Nielsen found that people stick to a fairly narrow range of viewing. Although the number of channels viewers can receive has grown every year -- from about 129 in 2008 to almost 190 last year -- the average number of channels people actually watch has remained pretty stable at around 17.
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But clutter has also increased. Overall spend was $78 billion last year, with dramas commanding the biggest pull. Fourteen commercials aired during each hour of network TV programming last year, per Nielsen Ad*Views.
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If viewers were sticking with networks, that would be about 70 ads per day, assuming Nielsen’s assertion that on average people watch TV for five hours per day (and assuming all of those hours were network.) But when viewers are paying more attention to a program they will also pay more to the ads that air in that program, per the firm.
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Nielsen also reports that second-screening isn’t necessarily a fragmenting activity versus TV. Per the study, about 41% of people use tablets and smartphones to look up information about the characters they are seeing. But 29% are using email and text and 18% are reading social media comments.
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Nielsen says its social media research division found that 36 million people sent 990 million tweets about TV last year and that the Twitter TV audience for an episode is 50 times bigger than the number of authors generating the tweets. But they don’t tweet during commercials. Between August and October last year, per Nielsen, 5.5 million people tweeted both about brands and TV.
o Total advertising as a percentage of sales was remarkably close for all dealership sizes, ranging from 1.11% for the smallest stores, to 0.92% for the largest. o Total advertising per new vehicle sold was $616 for all stores, but that did show a significant difference based on sales – a high of $862 for the smallest stores and a low of $410 per vehicle for the largest stores. Times are good in the automotive category and early reports from the first two Quarters of 2014 have given the indication that the positive momentum and trends will continue. I highlighted just a couple of major points regarding dealer advertising as a transition into providing some insights into the current landscape of TV advertising in today’s business world. TV IS STILL THE KING OF ADVERTISING Nielsen Media Research: TV Still Leads in Viewership and Ad Spend3 Just in time for the national TV upfront tussle and the approaching time period in which we all start thinking about local annual packages, Nielsen has released the Advertising and Audiences Report. Guess what: people still watch TV. A lot of it. And advertisers haven’t cut back on spending against it. Let’s take a look at the highlights from their recent release: •
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According to Nielsen’s Cross Platform Report based on third-quarter 2013 data, viewers spent, on average, 55.5 hours watching traditional TV versus nearly 15 hours on time-shifted TV; 34 hours using the mobile Web or an app on a smartphone; and about 28 hours via internet on a computer in the quarter last year.
CAB Bureau: Why There’s No Substitute for TV’s Powerful Audience4 In addition, the Cabletelevision Advertising Bureau and their CEO, Sean Cunningham, also recently published a white paper providing keen insights into the power of TV’s committed and affluent audience. Sean has a creative and interesting style and approach to recent trends best summarized with his statement, “We are entering an era where advertising is framed by the commitment of audiences to the content they invest time in. In this era, TV is more valuable than ever. It’s not about how much horsepower you can aggregate; it’s what happens when you put your foot to the floor.” For the purpose of this article I’m going
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to focus on some highlights from CAB regarding the all-soimportant automotive buying consumer segment of affluent households and their current media consumption habits: •
Affluent Adults ($75K+ household income) Spend More Than 15 Hours Per Week Watching Cable TV Programming
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Ad-Supported Cable Has A Large Majority of The Available GRPs Within Affluent Households ($75K+ household income)
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Cable Ratings Against Adults With A $75K+ household income Have Seen A Significant Increase Over The Last Ten Years While Broadcast Has Steadily Declined
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Cable Now Garners Double The Ratings Compared To Broadcast Against $100K+ household income
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Even Though They Are More Likely To Own Multiple Devices, Affluent People Overwhelmingly Prefer TV (TV 80%, Computer 20%, Tablet 7% & Smartphone 2%) for their video consumption
Looking Toward the Future – Change or the Same So, whether or not you think that the information in this article affected your reality on a deeper level or not, I hope that it provoked some internal thought that will help you as you continue to focus on growing your individual dealership. When you align your marketing goals and media spend with the constant evolution of the automotive category, coupled with current media trends, you have set yourself up for success for years to come. Grab the wheel and steer more automotive consumers to your website, dealership and that next record-breaking sales month and stay up-to-date with the changes along the way. 1 DME Automotive Study - J.D. Power & Associates “2013 New Autoshopper. com Study”, Kelly Blue Book data, 2013, NBC Universal survey, 2010 & McKinsey report, 2/2014 2 NADA Annual Report 2013 3 Nielsen Media Research 2013 4 Cabletelevision Advertising Bureau 2014, Analysis of Nielsen Npower Live+7 pm level 2Q’13 Total Day, Video Nation Custom Study
TV’s Powerful Audience - No Substitute
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LEARN MORE. EARN MORE. Looking for research, insights about online marketing or merchandising best practices? Find all this information and more at DealerLearningCenter.com. 32
NEXT GENERATION OF AUTO TECHS
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Coming to You with ASE Certifications in Hand
The link between the auto industry and education strengthened a couple of years ago when the ASE Industry Education Alliance was formed. The ASE Industry Education Alliance consists of: •
National Institute for Automotive Service Excellence (ASE) The technician certification leader since 1972
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National Automotive Technician’s Education Foundation (NATEF) Improving the quality of automotive technician training nationally since 1983
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Automotive Youth Education Systems (AYES) Connecting industry with education at the secondary level and creating employment opportunities for qualified high school students
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By Marvin Linville
Automotive Training Managers Council (ATMC) An organization of automotive training professionals.
Quality Techs Are Guaranteed by Important Industry Partners The ASE Industry Education Alliance is supported by some of the top names in the automotive industry, and donors span both OEM and aftermarket companies. It’s a unique example of the automotive industry working together to provide the resources necessary to carry out the mission of ensuring we have the qualified, entrylevel talent our industry needs to be successful in the years to come. Among the benefits coming out of the ASE Industry Education Alliance, ASE Student Certification
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represents a resource windfall for students pursuing an automotive career and for employers seeking qualified entry level automotive service technicians. AYES, NATEF and SkillsUSA partnered to offer the single ASE Student Certification tests. Developed by ASE, they are designed to evaluate students who are near the end of their studies in the areas of Automobile Service, including Maintenance & Light Repair, Collision Repair and Refinishing, and Medium/Heavy Duty Truck. They combine the benefits of well-known end of program tests with the national, portable certification credentials that address educational accountability and serve the needs of students, schools and the automotive service industry. ASE develops the tests using the same process and rigor as for the certifications tests for practicing professionals. Candidates and instructors are able to access the exam through a single co-branded test entry portal. ASE Student Certification includes tests in all eight ASE automotive areas, four Collision, Repair and Refinish areas, four Medium/Heavy Duty Truck areas, and the new Maintenance & Light Repair test. SE Certifications for Students While Still in School ASE Student Certification is the first step in building a career as an automotive service professional, providing students with their first industry-recognized certification. Although similar to the ASE exams taken by experienced professionals, the student certification exams are specifically designed and calibrated for inexperienced individuals who are preparing to enter the field after formal studies. It is not necessary for a school to be NATEF accredited, either. All secondary and post-secondary entry-level automotive training programs may use the ASE Student Certification program regardless of their program accreditation status. Neither memberships in SkillsUSA, nor affiliations with AYES are required for using the ASE Student Certification program. A single $30 fee per student, per academic year, allows the student to take any or all tests in the series twice each year; once in the fall, and once in the spring. There is no work experience requirement for student certification; the student simply needs to pass one or more of the student certification tests. Upon successful completion of an exam, the school prints the certificate, has it signed by the school principal or proctor for validation and then awards it to the student. Student certifications are valid for two years from the date the test was taken. Step by step instructions and more information can be found at the ASE Student Certification website at www.asestudentcertification.com. New Accreditation Model Reflects Changing Skill Needs Reacting to changes in the skill sets defined by the industry, on 34
January 1, 2011, NATEF assumed the role of accreditation of automotive programs as an extension of its role as the evaluation organization with the family of organizations of the National Institute for Automotive Service Excellence (ASE). NATEF’s role in the process is to work with industry and education to update the standards on a regular basis and evaluate programs against those standards. Based on a positive evaluation, programs were “certified” by ASE for a period of five (5) years. Effective January 1, 2011, all programs that held current ASE program certification were grandfathered as accredited by NATEF until such time that they were due to renew their accreditation. After a lengthy process that included discussions with industry, employers, and educators, NATEF conducted a series of workshops and webinars to review the automobile standards. In June, 2012, NATEF published a new model for automobile program standards. This new model introduced standards based on three (3) levels rather than by automobile area (brakes, electrical/electronic systems, etc.). The three levels are: 1. Maintenance & Light Repair (MLR) 2. Automobile Service Technician (AST) 3. Master Automobile Service Technician (MAST) Each successive level includes all the tasks of the previous level in addition to newly designated tasks. In other words, the AST task list includes all of the MLR tasks plus additional tasks. The MAST task list includes all of AST tasks plus additional tasks specifically for MAST. The cost to each program for accreditation is as reasonable as possible to encourage program participation, and includes program evaluation materials, application (processing) fee, on-site team evaluation materials, and the honorarium and expenses of the Evaluation Team Leader (ETL). If we are to address the growing need for qualified, entry-level talent needed in repair shops across the nation, it’s efforts like the ASE Industry Education Alliance that will get us there. From the standards and accreditation provided by NATEF, to the school-towork process of AYES, to the ongoing career support through ASE and ATMC, we are providing the tools and programs our industry needs to continue providing the most efficient and effective automotive service available to consumers anywhere. Marvin Linville is the ASE Industry Education Alliance Manager West ASE/NATEF/AYES Consultant/NATEF ETL ASE Master Technician. Marvin is the key person working alongside PSADA to grow new technicians out of top rated high school auto programs. PSADA also interfaces with Marvin to keep ASE strong in the Northwest as well as help implement the standards of NATEF, which sets the training criteria for all NATEF certified high schools and secondary schools such as the Professional Automotive Training Center at Shoreline Community College. Marvin can be reached at marvin. linville@ayes.org or marvin.linville@att.net. 35
Films, films and more films!
What are they and what your dealership By Kevin Iden Iden’s Dealership Services
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Are you offering personalization and protective films at your dealership?
With the increasing importance and focus on non-cancelable, tangible products that truly offer benefits to the customers, many dealerships are turning to films as some of their most important and profitable menu items. Some dealerships are selling these profitable products, some are simply accommodating requests made by customers for films, and some are still not offering these great products possibly due to the lack of information.
WHAT ARE THESE FILMS AND WHAT ARE THE DIFFERENT TYPES?
Paint Protection Film (PPF) Commonly referred to as “clear-bras,” this film is applied to the forward facing surfaces of the hood, fenders, lights, bumper and often includes pieces on the door edge and other vulnerable areas to protect against paint chips, pitting and damage. It has become hugely popular as this film is the difference between a pristine factory paint finish and one tattered with rock chips. PPF has replaced the old option of having a big black vinyl bra, that was not only unsightly but also caused damage itself from buffeting/vibrating. PPF must be applied by a skilled and 36
trained installer, usually with computer cut designs and using a combination of liquid solutions, heat, stretching and manipulation of the material. When done correctly, you end up with something that is clear, smooth and practically unnoticeable. �������������������������� ��������������������������� Today there are many manufacturers of PPF and not all are created equal in how they look and hold up over time. Be sure the best is used and that there is a guarantee against peeling, fading, cracking and yellowing, so that come-backs are minimized, and that these issues are warrantied in the rare event they do happen with a quality film. Some providers also offer a rock chip guarantee that offers replacement in the event a rock penetrates the film. Window Films (Tint) In the old days, “tint” meant dark windows, and many people just don’t want that. Nowadays, films come in all different shades, including some that are very light and hardly noticeable, yet still offer the protective benefits to both the passengers and vehicle interior from the sun’s harmful heat and UV rays. In fact, at least one brand of film is even endorsed by the Skin Cancer Foundation as it has been proven to make a significant difference. Just
needs to know about them
as in PPF, window films come in all different quality levels with many brands to choose from. The good ones work well and will look good for many years and offer lifetime guarantees. We’ve all seen the cheap, ugly “purple” stuff with bubbles in it which is obviously not what customers are looking for. Some providers also offer warranty contracts that cover accidental damage that may occur to the film. Wraps Wraps have grown in popularity recently and there are two main types. First is the commercial advertising printed wraps like the “Joe’s Plumbing” you see on commercial vehicles. Next are the newest and popular wraps which actually look like the whole car (or parts where it has been applied) was painted. Matte (or flat) finishes are most common but the films come in all sorts of shades, colors and textured designs including matte, glossy, carbon fiber, brushed metals, and many more. Some stores are pre-loading small pieces of it on spoilers, hoods, etc., as an inexpensive way to give a car a custom look. The benefits to these wrap films are they are much less costly than painting and are removable in the event the customer wants to do so. Personalization of vehicles is a multi-billion dollar industry and wraps are growing in size as a percentage of that because of their affordability, versatility and 37
endless options. My whole truck is wrapped in matte black and people go nuts over it like it’s some sort of exotic car….but it’s just my old work truck. Things to look for in a film installer • Does the provider service retail customer who compete with you, or do they focus their efforts on excellent dealership care so that you need not worry about conflicting pricing or losing your customers? • What brand of film are they using? Is it a recognizable and trusted brand? • Does it come with an actual warranty and contract to differentiate it from “the guy down the street?” • Is the film computer cut or hand cut on the car? Handcut PPF is risky and can look inconsistent. • Do they offer point of sale materials and sales training to aid your F&I and sales staff in selling it properly and effectively? • Are they properly experienced and insured, to ensure excellent CSI and cover any possible problems? Protective films are “When” products as opposed to “If” products. There is no question, every car will get rock chips
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without a paint protection film and every car and passenger is exposed to UV rays and heat from the sun without a protective window film. “If” products only benefit a customer if their car gets stolen, if it has a major mechanical failure, if it gets totaled with negative equity, etc. Offering films is not only profitable for stores actively selling them. It’s a simple fact that a large percentage of customers will go out and purchase these items. It may as well be your store accommodating their desire to do so. By offering your customers the best films with a qualified, professional and certified installer/provider, you will also give your customer another reason to be glad they did business with you and to return to you for their next vehicle…and, of course, to purchase more film on them. Kevin Iden, President of Iden’s Dealer Services, has almost 30 years in the auto dealership industry. He founded Iden’s Dealer Services which has become the largest provider of dealership reconditioning, detailing and protection services in the Pacific Northwest with both on-site and off-site staffing programs. Kevin can be reached at kevin@idensmail.com. You can also visit Iden’s Dealer Website at www.idensdealerservices.com. All PSADA members will receive a free consultation/evaluation.
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Washington Law Against Discrimination Requires Employers To Reasonably Accommodate Religious Beliefs
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By Richard Lentini
On May 22nd, 2014, the Washington State Supreme Court confirmed that the Washington Law Against Discrimination requires employers to reasonably accommodate their employees’ religious beliefs. In Kumar v. Gate Gourmet, the employees of a SeaTac airport caterer were not permitted to bring their own food to work for security reasons. The employees claimed the employer failed to accommodate their religious beliefs because the food it provided for employees’ meals violated their religious beliefs and practices. The Supreme Court held that state law, like federal law under Title VII, requires employers to reasonably accommodate employees’ sincere religious beliefs when the employer knows of the beliefs and the conflict and an accommodation would not impose an undue hardship on the employer. For example, an employer need not provide an accommodation that would cause a financial burden or that would be unduly burdensome because of conflict with other legal obligations, the interests of clients, or the interests of other employees. The case was remanded to the trial court for a determination of whether the employer failed to reasonably accommodate its employees’ religious beliefs, and other related issues. For more information on religious accommodation, please contact any member of the Employment Rights, Benefits & Labor Group at Ryan Swanson, Britenae Pierce at 206654-2289 pierce@ryanlaw.com or Rick Lentini at lentini@ryanlaw.com 206-654-2231. 41
“Business Friendly” Customer Service
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Of the many experiences we all have each day involving customer service, only a few may be memorably pleasant. Some may be okay. Some may even be abrasive. Shouldn’t they all be great? Don’t you think customers would be delighted in being treated one way, to have uniformly excellent service in each encounter? Wouldn’t it be great to always receive “Business Friendly” customer service? Well, why isn’t it that way? Bottom Line: the biggest mistake customer service professionals make is not treating customers in a friendly enough manner. Somehow the cold, aloof, reserved, overly formal method of handling people has come to be considered “businesslike.” But that’s not true. It comes across like frostbite. To the customer it can sound curt, bored, and uncaring. It’s costing companies billions of dollars in lost opportunities! “Business Friendly,” simply put, is the middle ground between being too cold, impersonal, or uncaring, and the other extreme of being too familiar too fast. Want to deliver GREAT Business Friendly Customer Service? It involves the following: 1. Treat every customer as unique; don’t become desensitized. During a typical day you probably handle repetitive questions; the same thing over and over. Toward the end of the day the “lots of calls fatigue” syndrome sets in and your energy level begins to sag. This is when you need to avoid becoming desensitized, to avoid sounding bored and uncaring and unpleasant to customers. Every customer deserves the same uniform excellence, no matter what time of the day they call. 2. Solve the problem; don’t argue! When a customer is wrong, and sometimes they are, it’s not a good idea to tell them that they are wrong. Don’t argue. Good
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By Nancy Friedman The Telephone Doctor
“Business Friendly” customer service focuses on solving the problem, not identifying and placing the blame! 3. Show empathy; don’t ignore what they say! Empathy is defined as the ability to share in another’s emotions, thoughts, or feelings. When someone describes a problem or a situation, don’t ignore it! Say something that shows you heard, understand, and share in the matter. Be empathetic. Reach out to involve yourself in the caller’s experience. This indicates that you’re being “Business Friendly.” 4. Smile; don’t be cold! A smile in your voice makes all the difference in the world. Yes, you can hear it! Without the smile in your voice, the listener’s perception is that you aren’t very friendly. It’s like having a friendly expression on your face when you meet someone. Your smile is your friendly facial expression on the telephone. Simple as it sounds, these four steps will get you started on delivering great Business Friendly customer service. As a customer service professional, make it your goal to reach out and treat every customer with the same warm and caring manner. Your goal is uniform excellence. Make every contact memorably pleasant. To do that, make Telephone Doctor “Business Friendly” your goal. Nancy Friedman, president of Telephone Doctor, is a keynote speaker at association, franchise and corporate meetings. She is the author of eight books on customer service and sales, has appeared on Fox News, CNN, Oprah, and dozens of other radio and TV shows. You can talk with Nancy at 314-291-1012, email her at nancy@telephonedoctor.com or visit www .nancyfriedman.com.
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