AUGUST MARCH 2021 CAPRICORN
APPRENTICE OF THE YEAR
WINNER ANNOUNCED
SEE PG 12
Stars
FUTURE RIDE M A S E R ATI MC2 0
2021 Capricorn State Of The Nation
Find out what Members said and how your business compares. CAPRICORN MUTUAL GIVES BACK New Member payment that's exclusively Mutual
MEMBER RIDE Italian beauty sets hearts racing
FIND THE PERFECT FIT GIFT Capricorn Rewards
IT’S 9,000 PLUS AUTO REPAIRERS... ...who have each other’s backs
Join us!
Capricorn Members can access mutual protection that unlike profit driven insurance, is owned by and run for, the same auto repairers who are part of it.
Find out how you’re better off with Capricorn Risk Services. 1800 007 022 | info@capricornrisk.com | capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).
TM
CONTENTS AUGUST 2021
5 Find The Perfect Fit Gift
Capricorn Rewards
7 Capricorn Risk
Could cybercriminals cost you a fortune?
8 Capricorn Mutual Gives Back
New Member payment that's exclusively Mutual
10 Who's Who in Collision?
Meet Paul McMartin, Director of The SAPE Group.
14
12 Capricorn Rising Stars
Meet the 2021 Apprentice of the Year Winner!
14 Future Ride
Lightning fast and feather light: meet Maserati’s MC20.
16 State of the Nation 2021
Find out what 2,000 plus Members said about the industry and how you compare.
18 One of the
World's Big Three's
The Indy 500, made it back onto the track during America’s Memorial Day weekend in May 2021.
20 Member Ride 24 Selling your
Devesh’s Italian beauty sets hearts racing.
20
Diagnostic Time
Diagnostics can be a lucrative revenue stream.
CAPRICORN IGNITION AUGUST 2021 3
David Fraser Group CEO
CEO’s message
Capricorn’s second annual State of the Nation Report is out this month and the news, considering the pandemic of the past year, is generally positive. More than 2,000 Members took part in this year’s survey and overall the results show workshop profits are up.
Capricorn Preferred Suppliers are an integral part of our cooperative model. We recognise the achievements of our high performing Capricorn Preferred Suppliers through our Million Dollar Preferred Supplier Awards. These awards are presented to Preferred Suppliers who reach million dollar milestones in total Capricorn Member sales. It is great to see Capricorn Preferred Suppliers reaching these outstanding milestones. Congratulations to the following Preferred Suppliers.
Many industries have not been so lucky but the response to coronavirus has created a few tailwinds for the automotive sector. People have clung to their cars like lifeboats – for everything from commuting to family getaways. More vehicles on the road, more often, means more vehicles needing repairs, and that means more business for Members. But not everyone has ridden out the pandemic profitably. State of the Nation found there are still plenty of places Members are leaving cash on the table or taking unnecessary risks. Identifying opportunities to help Members create more profitable and sustainable businesses is exactly why Capricorn embarked on this landmark State of the Nation project in the first place. We wanted to look under the bonnet of our industry, see what was working and what wasn’t, diagnose the problems, and provide a range of actionable solutions. This year’s report identifies some major areas of focus. The shortage of qualified technicians is a major problem, not enough Members have a healthy work-life balance and too few of us are ready for the big technological changes coming down the pipeline. In short, there’s still a lot of work to be done.
Tyres4U VIC Tyres4U VIC has been a well-respected Capricorn Preferred Supplier for 25 years. They provide our Members with a wide range of tyres from passenger to commercial and agricultural vehicles. With outstanding service and support, it’s no wonder Tyres4U VIC has achieved this award. Congratulations to the Regional Manager, Ryan Chapman, and his team as we strive together for the next milestone.
But it was also great to see big improvements in many of the areas we identified in last year’s report – with more Members charging for diagnostics, tracking efficiency, marking up parts more profitably and getting their retirement and succession plans in order. State of the Nation 2021 is a fascinating read. It’s full of great insights and useful advice to help every Member create a more profitable business. I hope you get as much out of it as I did. Yours in cooperation,
David Fraser Group CEO
Tasmanian Auto Recyclers Tasmanian Auto Recyclers is based in Rocherlea, Tasmania, and specialises in the recycling and dismantling of late-model, low-mileage car, 4WD and commercial parts. Congratulations to the team (pictured) including Matthew Burgess, Chris Cordiner, Ian Grant, Scott Smith, Luke Dobson, Travis Dean, and Chris Bulk.
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Find the perfect fit gift Using your Capricorn trade account is good for your business, but now the points you earn on purchases can improve the personal health of you and your staff!
TIME TO GET FIT!
Check out some of the latest range of fitness gadgets and sporting goods that you can claim with your Capricorn Rewards Points.*
Fitbit Versa 2 Smart Fitness Watch
Suunto 9 Baro Titanium GPS Sport Watch and Activity Tracker
Garmin Fenix 5S Sports Watch
Callaway X Hot Packaged Set
Callaway Epic MAX Driver
Evolve Skateboard Helmet
Womens Reva 8-Piece Set
Wilson Surge Pro Racquet Pack
Powerfit Cubii Junior
Set your Rewards goal Setting a Rewards goal is an easy way to track the value of the points you earn each month. Simply click the “target” icon on any item in the My Rewards catalogue and you will receive notifications when you have enough points. Please note you can only set one Rewards goal. This can be changed at any time by clicking on a different “target” icon. If you want to monitor multiple items, you can instead click the “heart” icon to add it to your Wishlist. *Products subject to availability.
CAPRICORN IGNITION AUGUST 2021 5
WANO – THE NEW PARTS DESTINATION FOR JAPANESE AND ASIAN COMMERCIAL VEHICLES WANO absorbs the expertise and vast commercial vehicle parts sourcing capabilities of HIM Spares, Don Kyatt Queensland, He Knows Truck Parts, I Know Parts, Japanese Trucks Australia, Japanese Commercial Spares and Truck Parts Dubbo. These businesses now combine into one as WANO, combining more than half a century of industry experience supported by the automotive aftermarket resources and customer service capabilities of the Bapcor Group. All of the highly specialised businesses that form WANO have a strong heritage and proven track record in the rapid sourcing and fast supply of quality Japanese and Asian commercial vehicle parts. Now together as the one national and highly specialised commercial vehicle parts provider. This one stop national parts destination provides Australia’s most comprehensive range of parts to suit Japanese and Asian commercial vehicle makes and models. In-house workshops, external service agents, panel shops, cooling system specialists, auto electricians and tuners for commercial vehicles - one speed dial call to 1300 595 944
connects them to a highly experienced parts interpreter and over 70,000 SKU lines across 15 locations. Driveline, body, suspension, chassis, electrics, cooling, lubrication, consumables. If it’s not in stock, WANO will source the part directly to minimise an operator’s down time. One call connects to the supply chains of seven of the biggest independent suppliers of Japanese and Asian commercial vehicles. Operators of Isuzu, Hino, Fuso, UD, Toyota, Nissan and LDV in light commercial classes are all covered. WANO’s in-store, online (www.wano.com.au) or over the phone service backed by industry leading and constantly updated commercial vehicle parts cataloguing also helps to keep Australia’s commercial vehicle fleet on the move. WANO is the new name representing Australia’s unrivalled leaders in Japanese and Asian commercial vehicle parts, locate your closest store by calling 1300 59 59 44 or visit WANO online at www.wano.com.au.
Woolworths at Work Winners Congratulations to Mobile Diesel Services Brisbane who have won a $1,000 shopping spree. The team won the shopping spree just by shopping with Woolworths at Work in May and June. Additional congratulations go to VT Auto Pty Ltd who have won 5,000 points in our “Find the grocery items” competition in July’s edition of Ignition. Of course, Members benefit all year round by shopping on their trade accounts with Woolworths at Work. Whether you need coffee and snacks for the troops, your afterwork BBQ and drinks supplies, or maybe cleaning products and office essentials, you can get it through Woolworths at Work. Capricorn Member benefits include: • Free delivery on orders over $99* • Save time shopping with orders delivered to your door • Consistent pricing options on a range of products • Earn more Capricorn Rewards Points • Consolidate more expenses on your trade account
What are you waiting for? Log in and start shopping at capricorn.coop
6 CAPRICORN IGNITION AUGUST 2021
*Only applicable in non-remote areas where delivery is available, and for an 8-hour window. Bag fees apply.
TM
Could cybercriminals cost you a fortune? Did you know that any piece of electronic equipment connected to the internet can be vulnerable to a cyberattack that could cost you tens of thousands of dollars? Everything from your phone to your office computer to the scan tools out on your workshop floor is a potential entry point into your business for a cybercriminal. Every year cyberattacks cost the Australian economy $29 billion; and the average cost of a data breach to a company is $2.13 million. In New Zealand, cyberattacks in the 2019-20 Financial Year cost victims NZ$108 million. It’s easy to imagine that big businesses are the usual targets of these kinds of attacks, but most of the tens of millions of cyberattacks in Australia and New Zealand every year are on small and medium-sized businesses. Why? Because smaller businesses don’t have the kinds of sophisticated IT security systems of bigger companies. Put simply, smaller businesses are easier to hack — and gaining entry to your entire computer system can be as easy as tricking you into clicking on a link in an email. Once they’re in, the criminals can lock your computers, demand ransoms, drain your bank accounts and steal personal information. Cybercriminals often ask for smaller amounts of money, in the order of $3000, to relinquish control of your IT system. Usually, they ask to be paid in Bitcoin so the transaction is not traceable.
If you don’t have IT security in place, we highly recommend you speak to a specialist as soon as possible to set up your first line of defence in place. You may as well make it as hard as possible for criminals to get into your system. The other step we encourage every Member to take is purchasing cyber insurance. If you do fall victim to a cyberattack it is important to act fast, and having cyber insurance allows you to do just that. Depending on your policy, cyber insurance may cover: • • • • • •
Loss of revenue from interrupted business Hiring negotiators and paying a ransom Recovering and replacing records or data Liability and third-party loss Defence of legal claims Preventing further attacks.
Having cyber insurance gives you access to IT specialists who can access your IT system, stop any more damage, and attempt to undo the damage done by the criminals. The policies aren’t expensive, and they won’t prevent an attack from happening, but they can make all the difference in keeping the costs involved in the clean-up under control. It’s a worthwhile investment. To find out more about cyber insurance, contact your Risk Account Manager today.
Contact Capricorn Risk Services 1800 007 022 I info@capricornrisk.com I capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197). CAPRICORN IGNITION AUGUST 2021 7
$6M PAYDAY AS CAPRICORN MUTUAL SHARES PROFITS WITH MEMBERS
A loyalty windfall of $6 million will be shared among eligible Capricorn Mutual (CML) Members. Capricorn Mutual Management Chief Executive Officer Jim Glossat said the Member Loyalty Rebate came after several years of exceptional financial performance, i n c l u d i n g a v e r y s t ro n g 2 0 2 1 Financial Year. It’s the first time in the Mutual’s history it has declared a rebate. Jim said CML was in a strong financial position, with more than $130m in assets, and in a good position to provide a rebate to eligible Members in the form of rewards points. “As a Member-based organisation, CML prices its protections to make only a modest profit — just enough to cover its regulatory requirements,” he said. “However, in addition to our regular claims, we must also price for catastrophe events such as bushfire, hail and flood and we never know when they are going to happen. “In some years we experience more events than others and we need to ensure that there are always enough funds in the business when those events do happen.
This is the first time the CML board has announced a Member Loyalty Rebate, which will be paid out to eligible Members in the form of bonus rewards points. To be eligible for a rebate, you must have been a Member with CML for at least three continuous years (as at 30 June 2021). The rebate calculation has been designed to reward Members who have stayed with CML and the longer you have been a Member, the bigger the rebate you are eligible to receive. The bonus rewards points will be credited to the Capricorn Trade Account of eligible Members in July. Letters will be sent to eligible Members in the coming weeks outlining their entitlement which is based on their tenure and 2021 financial year spend with CML. Jim said the rebate was another good example of the difference choosing to protect your business through a mutual makes. He said CML’s constitution meant Members would reap the benefits when the Mutual performed well, demonstrating the CML commitment to Capricorn Members. “We’re delighted to be able to return this benefit to Members,” Jim said. “It shows, once again, that we really are stronger together.”
“But CML’s policy is to return excess funds to Members whenever it is safe and responsible to do so.” CAPRICORN IGNITION AUGUST 2021 9
WHO’S WHO IN COLLISION?
This month Joe McFadries of the National Collision Repairer spoke to Paul McMartin, Director The SAPE Group. NCR : By way of introduction, tell us a bit of background about SAPE and how it came to be. PM: Sydney Automotive Paints & Equipment, now known as SAPE, was established in 1976 by Ray McMartin. In the early years it traded as a local Auto Paints Store based in Marrickville, NSW, supplying the then popular Dulux Duco to body shops in both Sydney Metro and Regional NSW. Fast-forward to 2021, and our growth has been significant, as today we have a team of 90 staff members across six facilities: Sydney, Gosford, Newcastle, Canberra, Brisbane and the Gold Coast. SAPE is a leading distributor of Glasurit and baslac paints for BASF Australia, as well as Spies Hecker for Axalta Coating Systems through our subsidiary company, Automotive Colour & Equipment – known in the industry as ACE. Our focus in developing our equipment business has resulted in SAPE becoming the sole national distributor for some of the world’s most recognised collision repair brands, including GYS, Celette, Spanesi, Jollift, Autorobot, IRT, Drester, Herkules, Scangrip, CarSystem and Wielander & Schill. These relationships have been forged over 45 years and have allowed SAPE to bring to market products that would otherwise be unavailable to the collision repair industry in Australia – a feat that we don’t overstate, but of which we are quietly proud! NCR: And how – and when – did you become involved in the business? PM: I’ve always had a passion for cars and decided to get into spray painting. I started my apprenticeship in 2002 and became a tradesman, but then I decided to take a different path and studied Marketing and Management. In 2007, I enlisted in the Royal Australian Regiment (Infantry), a career that spanned five years and three deployments to Afghanistan and East Timor, before returning to the industry, joining the company in 2012. 1 0 CAPRICORN IGNITION AUGUST 2021
I started in the warehouse, progressed in the business through various roles, including operations, purchasing and marketing, through to my current role as Director. NCR: OEMs have become increasingly active in the collision space – how has this impacted the SAPE Group? PM: SAPE has always believed that the supplier-OEM relationship is one that needs nurturing, trust, and mutual understanding, which is why we have a close and longstanding working relationship with many of the major OEMs both at a local and international level. We understand the importance that OEMs place in correctly repairing vehicles, which is essential for the safe and reliable operation of all vehicles as well as the personal safety of the driver and passengers. This is why we source OEM-approved equipment from some of the industry’s global giants, such as Spanesi, Celette and GYS just to name a few. The products are always of the highest grade and quality, and meet the specification needs of the repair. NCR: And I also believe you have invested heavily in training facilities. PM: SAPE saw an increasing demand within the collision repair industry for highquality training, particularly training based upon OEM repair procedures. As there were limited suitable existing facilities, with many lacking the depth and range of equipment found in many modern OEM repair facilities, we engaged several OEMs and key industry stakeholders with a view of developing a world-class training facility in the heart of metropolitan Sydney. SAPE’s Training Academy now offers three spaces that create a virtual workplace that allows participants to confront the challenges of a real body shop in a risk-free environment. From theory and welding, through to structural repairs, our Training Facility allows for the creation of programs that engage and inspire like no other venue.
NCR: You’ve also initiated a growth-byacquisition strategy. How is this going thus far, and what can we expect in the future? PM: Since the beginning, we have grown consistently through a dual growth strategy: firstly and most importantly, through organic growth, and secondly by acquisition. Our recent acquisitions have included The Paint Depot on the Gold Coast, Auto Paint Supplies in Canberra and Peninsula Paint Supplies in Gosford, NSW. There has been positive feedback to these acquisitions from local customers who are interested in the unique approach that SAPE brings to the supply of paint, consumables and equipment to the industry. Our aim is to make the transition seamless and to offer an excellent, streamlined and tailored service across all branches and channels. We are always on the lookout for the next growth opportunity and invite any distributor who is thinking of making a move to give us a call. In addition, we have been a Capricorn Preferred Supplier of equipment for some time and have always found their finance package easy to use and highly beneficial to their Members. With our recent acquisitions, we are now also a Preferred Supplier of paint and consumables, further strengthening our partnership with Capricorn. NCR: So, in closing, what is it about SAPE that makes you stand out from the competition? PM: Due to the knowledge and expertise of our team, we offer a unique, market-leading approach to all aspects of the collision repair industry. From our supply chain to our operations and on to our customers, we are focused on offering a complete body shop solution. We are a one-stop shop that our customers can rely on, and we still stand by the same values today as we did when we opened in 1976.
Capricorn Member Profiles
Cairns Diesel Service: 60 years, still growing
Longevity in business doesn’t happen by accident – it requires making a lot of good decisions over a long period of time.
who joined Capricorn three years ago after a visit from an Area Manager. They said they enjoy the convenience and the access to suppliers that membership gives them.
Cairns Diesel Service opened its doors in 1959 and has grown to become a prominent workshop in Far North Queensland for diesel repairs and diagnostics. The fully equipped garage provides fuel injection and turbo charger service, vehicle diagnostics and performance solutions for diesel applications.
The pair also take advantage of Capricorn Risk Services, saying not only are the prices competitive but being able to accrue Rewards Points is “a fantastic advantage”.
In 2020, after 60 years in business, the company moved to new and larger premises — with room for all 12 employees and more hoists — and celebrated the refresh with new branding, too. Despite the challenges of Covid-19, which shut down manufacturing and disrupted both supply and freight, the business continues to grow. Cairns Diesel Service is owned by Daniel Owen and Travis Briffa,
Daniel, Travis and their wives attended Capricorn’s Gala Night on the Gold Coast in 2019 and took part in the Townsville Trade Show. “We recommend utilising the network opportunities available to Members,” the pair said. “This might be new customers or suppliers.” If good decisions are the secret to a long and successful business, it sounds like Travis and Daniel are steering Cairns Diesel Services towards an even brighter future.
AUTOMOTIVE RIGHT TO REPAIR BILL PASSES THE SENATE On 17 June 2021, the Australian Senate passed the Motor Vehicle Service and Repair Information Sharing Scheme Bill. The amendment to the Competition and Consumer Act 2010 ensures service and repair information provided to car dealership networks is made available for independent repairers to purchase at a fair market price. The Federal government notes the new law is designed to provide better service and repair information for the 74 automotive brands available in Australia, in an industry worth $23 billion annually. In Australia the motor vehicle servicing and repair industry involves nearly 35,000 businesses employing more than 106,000 Australians. The new scheme will commence 1 July 2022 and be monitored for compliance by the Australian Competition and Consumer Commission. CAPRICORN IGNITION AUGUST 2021 1 1
CONGRATULATIONS
BEN BROWN
BEN BROWN - CWR MOTORSPORT CAPRICORN RISING STAR APPRENTICE OF THE YEAR
CAPRICORN
APPRENTICE OF THE YEAR
Stars
The Capricorn Rising Stars trophy is heading to New Zealand. Hailing from Rangiora, North Canterbury, apprentice Ben Brown has demonstrated outstanding problem-solving capacity, commitment to excellence and a genuine love for automotive, to be named the 2021 Capricorn Rising Stars, Apprentice of the Year. Capricorn Rising Stars is an initiative to help Capricorn Members recognise, reward and retain their high-performing apprentices. These are apprentices who show initiative in the workshop, eagerness to learn and commitment to the auto industry. By recognising the contribution of automotive apprentices and the bright careers they have ahead of them, Capricorn hopes to help its Members continue to attract the best talent and keep more qualified auto repairers working in the industry. CWR Motorsport's Mel Ward described Ben as the perfect fit for their workshop. “We took on Ben our apprentice in August 2020. To say the least, it is the best thing we have done. Ben has a fantastic work ethic, he is polite, and great with the customers. He has an extensive knowledge base and can relate the issues with people’s cars to them in language suited to each individual. He is passionate about not only his mechanic side of the job, but also has a lot of ideas and vision to help us to grow our business. He has proved to be invaluable, and we wouldn't be where we are today without him.” These sentiments were echoed by Ben who attributed much of his success to the support received by his employers at CWR Motorsport. “Chris Ward is well known in the motorsport field, and equally regarded as an honest, professional, and remarkably skilful automotive engineer. This has afforded me learning opportunities I didn’t know existed, developing skills I had only dreamt of, working amidst the motorsport sector.
“I firmly believe it’s all about perspective and attitude. I have an appetite for knowledge and a passion to be the best at what I do. I also have a strong desire to help people and give back. I treat every job as an opportunity to develop my skillset and knowledge. By doing this I hope to become the best technician possible.” As the 2021 Capricorn Rising Star, Ben will receive $5,000 from Castrol. The CWR Motorsport team will also benefit from a 12 month Repco Autopedia subscription and enrolment in the Workshop Whisperer’s Service Advisor Pro online program. The standard of nominees in 2021 was extremely high. More than 600 deserving apprentices were nominated this year from industry sectors including panel and paint, auto electrical, commercial/heavy diesel, tyre/wheel and general mechanical workshops located across Australia and New Zealand. Capricorn congratulates Ben and all the Capricorn Rising Star nominees. With so many Member workshops preparing the next generation of industry leaders, there is no doubt that the future is in safe hands. Thanks also goes to Capricorn Preferred Suppliers and program sponsors Castrol, Repco and The Workshop Whisperer for their continued support. Look out for Capricorn Rising Stars to return in 2022 as we seek to recognise, reward and retain more outstanding apprentices.
FUTURE RIDE
LIGHTNING FAST AND FEATHER LIGHT:
MEET MASERATI’S MC20
1 4 CAPRICORN IGNITION AUGUST 2021
Whatever your “if I ever win Lotto” plans are, put them on hold until you’ve read this – because you may need to reconsider. Maserati has just released its first supercar in a generation, the MC20. It’s a thing of beauty and it’s the first vehicle to come with a new threelitre twin-turbocharged V6 Nettuno engine. Nettuno was conceived, developed, designed and built entirely by Maserati, and uses a pre-chamber combustion technology derived from Formula 1 powertrains. It has a top speed of over 326 km/h and accelerates from 0 to 100 km/h in 2.88 seconds – which would be quite a memorable trip to Woolies. Weighing less than 1500 kg, with rear-wheel drive and an 8-speed automatic transmission, peak torque is 730 Nm at 3000 to 5500 rpm. Maserati hasn’t just been working on the mechanics for this new generation of vehicle. The entire chassis of the MC20 is carbon fibre and composites (hence the light weight) which has also given them real freedom with shapes they’ve been able to create in the body (most notably, the butterfly doors). So, it’s lightning fast, feather light and “built to stun”, as Maserati points out. But the MC20 isn’t just a toy for the track. This is an everyday supercar, designed for “excellent driveability, comfort and safety” on the road, with “an interior where efficiency combines with luxury”.
It has an elegant but still sporty design. It’s also surprisingly minimalist inside. The interior is black and has dark upholstery, with just two 10-inch screens and no superfluous ornamentation. “It only carries the driving mode selector, two buttons for the gears, the power window controls and the infotainment volume control, and a smartphone pad with wireless charger,” Maserati said. “All the other controls are on the steering wheel, with the ignition button on the left and the launch control on the right.” Wait, driving mode selector? Yes, the MC20 has five driving modes to choose from: Default GT for ease of use and comfort for everyday driving; Wet, for maximum control on damp surfaces; Sport, for high-traction conditions, such as a racetrack; Corsa, the “fun” setting, with less active traction and stability controls; and off mode, which speaks for itself. It’s worth noting Maserati is releasing a combustion engine vehicle at a time when most manufacturers are focused on electric. Well, an electric model is on the way next year. Maserati says it will have a range of about 386 km and a top speed of more than 305 km/h. It has been designed so an electric drive train can slot right into the existing chassis and body without any alteration. That’s thinking ahead. This is the kind of car that dreams are made of. But at a time when combustion engines are on the way out and we’re on a steep trajectory towards electric, it is also a car that has been designed with the future in mind. Speaking of future planning… we’re off to buy a lottery ticket.
C ACPARPI C R IOCRONR ING INGI N T II O T INO O N CATUOGBUESRT 22002201 1 5
Over 2,000 Capricorn Members told us what they really think about the automotive industry.
NZ
22%
12%
25%
10%
23%
18-24
25-34
35-44
45-54
9%
WA
9%
28%
17%
31%
15%
Region
VIC/TAS
Let’s start with a breakdown of how our industry looks, according to the survey findings.
SA/NT
It’s filled with data, graphs, charts, information and advice, to not only show you how your business measures up, but to help you meet challenges and identify opportunities to grow.
QLD
More than 2,000 Members across Australia and New Zealand responded to our 2021 survey, ensuring this second State of the Nation report provides an incredibly useful snapshot of the industry, across all workshop types, throughout both countries.
NSW/ACT
If you’ve ever wondered how your turnover compares to workshops of a similar size, or whether other businesses are struggling with the same challenges you are, Capricorn’s State of the Nation 2021 report is your opportunity to find out.
0%
Age
Sample characteristics by region & age.
Find out what they said and how your business compares.
55-64
65+
The average respondent was male, aged 49 and speaks English as the primary language at home. Three quarters of respondents were Australian and a quarter were from New Zealand. Of those who responded, 88% ran independent workshops, 72% ran mechanical workshops and 70% were the sole decision makers in their businesses.
1 6 CAPRICORN IGNITION AUGUST 2021
Business Type Mechanical workshop Panel and Paint Auto electrical Commercial Truck Tyre and Suspension Other
72%
7%
6% 5% 4% 6%
Total 2021
How big are these workshops? Across Australia and New Zealand, the average number of employees is 4.5 and the average number of hoists is 3.2 – up from 2.9 in 2020. Australian workshops see an average of 30.8 vehicles a week, eclipsed by New Zealand (where mandatory warrant inspections may boost the numbers) on 41.8 vehicles per week.
Average number of vehicles seen per week by number of hoists AU
1-2
3-4
51
41
41
32
25
19
NZ
5+
Average age of cars serviced
2016 or newer 2011-2015 2006-2010 2001-2005
15%
17%
23%
26%
Models older than year 2000
20%
Total
Capricorn's State of the Nation 2021 report is now live on CapHub. Download the full report by visiting capricorn.coop/caphub Stay tuned on CapHub for a range of bite-sized business tips and workshop hacks based on the findings of the State of the Nation 2021 report. CAPRICORN IGNITION AUGUST 2021 1 7
ONE OF THE WORLD'S BIG THREE RETURNS IN 2021
By Paul Marinelli
The 105th running of one of the world’s greatest motor races, the Indy 500, made it back onto the track during America’s Memorial Day weekend in May 2021. This is one of the triumvirate of motor racing events that every racing driver dreams of winning, joined by the majestic Monaco Formula One Grand Prix and the epic Le Mans 24 Hour race. Only one driver, Briton Graham Hill (father of 1996 Formula One World Champion Damon Hill) managed to win all three during his outstanding career. He won the Indy 500 in 1966, the 1 8 CAPRICORN IGNITION AUGUST 2021
Le Mans 24 Hour in 1972 and the Monaco Grand Prix five times — in 1963, 1964, 1965, 1968 and 1969. In addition to this, Graham Hill also became a double Formula One World Champion, taking the top honours in both 1962 and 1968. Legendary American racer AJ Foyt has won two of the big three, with four Indy 500 victories and one Le Mans win, as has
This year’s popular four-time winner, Brazilian Helio Castroneves, earned $1,828,305 for his 2021 Indy 500 victory, an outstanding achievement as a wildcard entrant with a part-time IndyCar team. The extremely talented 2021 Indy 500 runner-up, Alex Palou from Barcelona, Spain, walked away with $649,305 for his effort, which took the battle for the win all the way to the final laps of the race. One of our Trans-Tasman representatives in the big race, triple Supercars Champion Scott McLaughlin was running within the top ten for most of his debut Indy 500. A drive-through penalty for speeding in the pit lane saw him relegated to 20th by the chequered flag, which still earned him the top rookie (first Indy 500) honours. Don’t feel too sorry for him though; he took home $151,305 for his efforts. Six-time IndyCar Champion and 2008 Indy 500 winner Scott Dixon (NZ) finished in 17th place after a badly timed Safety Car period relegated him to the rear of the field. Dixon still took home a cool $316,305 . 2010 Indy 500 Rookie of the Year and Former Nissan Supercars driver Simona De Silvestro returned to the Indy 500 this year, her race coming to an abrupt end in the pits after making it to the top 20. She earned $100,305 for her effort. De Silvestro is one of nine females to have competed in this world famous motor race. Janet Guthrie was the first in 1977; she was followed by Lyn St. James, Sarah Fisher, Danica Patrick, Milka Duno, Ana Beatriz, Katherine Legge and Pippa Mann. The Indy 500 is not for the faint-hearted, with this year’s race being the fastest ever, reaching average lap speeds of 306.8 kph (190.6 mph). Scott Dixon was the top qualifier, reaching a top speed of 372.8 kph (231.6 mph) during his pole position setting lap. A total of 30 cars finished the gruelling 200 lap race, establishing another new record.
Spaniard Fernando Alonso, with two Monaco GP victories and two Le Mans 24 Hour wins. They are joined by Colombian Juan Pablo Montoya and New Zealand ace Bruce McLaren, who each have also won two of world motor racing’s big three. The Indy 500 attracts close to 300,000 spectators to the incredibly fast 2.5 mile (4 km) oval superspeedway affectionately known to motorsport fans as The Brickyard. This nickname is derived from the original surface construction of crushed stone and tar that dates all the way back to 1909. A small portion of the old brickwork remains intact across the legendary circuit’s startfinish line as a memento of this epic event’s long history. In its earlier years the Indy 500 awarded huge prize money to the top 12 finishing drivers. These days every driver who competes is awarded prize money, attracting an oversubscribed field that forces everyone to qualify during the month before the race in order to make it to the starting grid. CAPRICORN IGNITION AUGUST 2021 1 9
DEVESH’S ITALIAN BEAUTY SETS HEARTS RACING Capricorn Member Devesh Mishra is a lover of all things Italian: food, wine, fashion – and, of course, cars. And when it comes to indulging this passion, Devesh certainly doesn’t seem to do things by halves. This month’s Member Ride is Devesh’s 2018 Ferrari 488 Challenge car, built especially to take part in Ferrari’s famous one-make series of races that has been delighting motorsport fans since 1992. It’s beautiful. But it’s not just for looking at. This is a real race car. In fact, it’s the only Ferrari Challenge car in Australia that has competed in an official round of the Asia Pacific Ferrari Challenge series. At that race, at Albert Park in 2019, it was driven by Irish driver Hector Lester. The car has a 3.9 litre turbo V8 engine with maximum power of 670 hp and maximum torque of 760 Nm for a power-to-weight ratio of 2 kg/hp. It is managed for Devesh by Zagame Autosport, which is responsible for the storage, transport and preparation of the car between events, and who provides on-track support and driver coaching at monthly track days.
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Devesh’s 488 is in factory standard condition but for one modification: it has a Vbox video and data logging system which allows the Zagame Autosport racing team (led by driver coach Rod Wilson) to later review the footage and data collected from the car during each session. This information is then used to develop the driver’s skill level and lap times. Devesh owns Cornell Diesel Systems – a group of three diesel mechanic workshops in Sunshine in Victoria, Wetherill Park in New South Wales, and Lega Lega in Fiji. He also owns diesel products distributor, CFI Australia. His plans for the car include participating in future track day events, continuing the driver development work and, ultimately, taking part in the Ferrari Challenge series.
MEMBER RIDE
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PREFERRED SUPPLIER PROFILES QUEENSLAND
1
YEAR PREFERRED SUPPLIER
Cheaper Diesel Spares cdsa.net.au
Cheaper Diesel Spares Australia is a proudly Australian-owned and -operated company, working hard to supply quality parts directly to Members at discounted prices. Cheaper Diesel Spares have an experienced team, specialising in the diesel industry and providing great customer service, and are willing to assist Members sourcing the correct products at a great price. Cheaper Diesel Spares can also test injectors and pumps.
SOUTH AUSTRALIA/ NORTHERN TERRITORY
32
YEARS PREFERRED SUPPLIER
Independent Battery Distributors independentbatterydistributors.com.au
Independent Battery Distributors has been in business since 1985 and a Capricorn Preferred Supplier since 1989. Today they employ 40 people across three states. Independent Battery Distributors prides themselves on delivering a high level of technical expertise and customer service and enjoys helping Members overcome their challenging battery problems. They are a Bosch Battery distributor for SA, NT, VIC and TAS, and also offer Optima, Odyssey, SSB and Platinum Brand batteries. Their extensive product range covers most applications, setting them apart from other battery suppliers. Independent Battery Distributors offers delivery to most business locations and can offer service calls if required.
VICTORIA/TASMANIA
12
YEARS PREFERRED SUPPLIER
Industrial Tyre Suppliers itsindustrial.com.au
Industrial Tyre Supplies is the oldest established tyre repair materials supplier in Australia. They supply quality products at very competitive prices for the mounting, balancing and repairing of tyres. Supplying Members with valves, patches, plugs, gauges, hand tools, jacks, air tools and so much more. From tried and tested global brands to Australian-made wheel weights, ITS has the expertise to provide immediate answers. ITS is part of the Rema Tip Top group of companies, a recognised world leader in tyre repair. They are able to access global experts in the field of tyre mounting and repair for tyres of all sizes and applications.
WESTERN AUSTRALIA
17
YEARS PREFERRED SUPPLIER
Turbotech turbotech.com.au
Turbotech supplies all of your turbocharger requirements. They are a Garrett, Holset and Borg Warner dealer for genuine new turbos and have a range of 43 popular turbochargers which they build themselves. Their Turbotech turbochargers are identical to the turbo on the vehicle and fit straight in, as they comprehensively blueprint their turbos so they are ready to go. Turbotech turbos offer a viable alternative to the original turbo and are impressively priced. Contact Turbotech for all your turbocharger needs. Turbotech has been actively supporting Australian companies in the field of turbocharger technology for over 30 years.
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Selling your diagnostic time - by Geoff Mutton The modern car is supposedly more reliable and requires less maintenance than its predecessors. Whether that is true or not is debatable. What isn’t up for debate is that customers have latched on to this and are becoming more and more comfortable about extending their vehicle’s service cycles. The result of this rather ill-advised mentality will be that work patterns in aftermarket workshops will change, with an increasing proportion of jobs being bigger than average, and more complicated diagnostically. It follows that not only will workshops need the expertise to diagnose and repair complicated jobs, but they also will need to be able to sell their diagnostic time to the customer. 24 CAPRICORN IGNITION AUGUST 2021
"Diagnostics can be a lucrative revenue stream" The key to selling diagnostic time is to adopt a process that can be clearly understood and followed by front office staff as well as the technicians working on the job. It is imperative that everyone in the workshop is on the same page.
clear on the time commitment. They also need to understand that they don’t have to solve the problem in the first hour. However, they need to be able to report back to the customer with a course of action.
Below are some tips as to what to consider when deciding whether to charge for diagnostic time and how to determine an appropriate charge for your business.
Once the problem is identified, the customer can be issued a quote for the repair. Even if the customer chooses not to go ahead with the repair, the workshop has at least been compensated for the time spent diagnosing the problem.
Handling an initial enquiry
If a loyal customer pulls into your driveway with a problem and asks for a quick diagnosis and you say you won’t look at it until they open their wallet, you may never see them again. Conversely, if you jump in headfirst with no financial commitment from the customer, it is more than likely a lot of time is going to be wasted – at your expense. Here’s the compromise – question your customer about the problem for a few minutes and then spend five minutes to confirm the problem. This will win the customer’s confidence and will put you in a good position to sell a diagnostic inspection. If the customer is not willing to pay for a diagnostic inspection, don’t waste one more minute on the car. If you need to explain your position to a doubting customer, ask if they have to pay to have their GP diagnose a mystery illness.
Clarify your diagnostic inspection price and inclusions
Electricians and plumbers don’t make house calls and solve problems for free, so there is no reason automotive technicians should feel obliged to hand out a free diagnosis. Doing so may devalue your time and affect your workshop’s profitability. First, you may wish to consider underlying costs when determining your price for a diagnostic inspection. Some considerations may be testing, scan tools, data, research, reports and time allocated. Once the inclusions and the price are clear, the diagnostic inspection can be confidently sold to the customer. Take the time to explain the difference between this diagnostic inspection and ultimately fixing the problem. The last thing you want is the customer walking away with different expectations.
Gaining further financial commitment
Some problems can be more complex than others, so if the initial diagnostic inspection doesn’t lead to a resolution, a further financial commitment from the customer may be appropriate before any more time is spent. Charging for diagnostic inspections, even where the customer decides not to go ahead with the repairs, shouldn’t be a problem if you have gained the financial commitment from the customer at each step throughout the process.
Servicing and diagnostics
Very often, a customer will mention a specific problem when their vehicle comes in for a routine service. Diagnosing a particular problem is not part of the service. Time should not be spent on the problem during the service, when the workshop has not received a financial commitment to do so. This just erodes any service profitability. To avoid this happening, stick to the diagnostic process. Tell the customer that a portion of time will be spent on this new problem during the service, and if the problem can’t be quickly solved, they will have to be sold a diagnostic inspection, quite apart from the service commitment. If the customer won’t commit to a diagnostic inspection, just finish the routine service and do nothing more. Diagnostics can be a lucrative revenue stream. An hour of a technician’s time on diagnostic work should be valued just as any other general service work is. If time is getting lost in diagnostics, it may be time to review your diagnostic process.
They need to understand that one hour will be needed to perform a series of tests to better understand what the problem is and to determine what further action will be required.
Performing the diagnostic inspection
There is no point spending two hours on a diagnostic inspection when the customer has financially committed to only one hour. Staff need to be very
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CAPRICORN CLASSIFIEDS Classifieds Advertising Guidelines Do you have a business for sale, have equipment that you need to get rid of, or are you just looking for a part that you haven’t been able to find? If the answer is yes, then you should advertise in the Capricorn Classifieds; it’s FREE to do so. See below for details. • The Capricorn Classifieds are for Capricorn Members only to advertise. Payment is to be organised between advertiser and purchaser. • Parts or equipment that relate to your business only may be advertised. • Businesses for sale may be advertised. • Cars for sale cannot be advertised. • Classifieds are on a first come, first served basis. Depending on the number received, your classified may
not appear immediately. • No positions vacant. • No pictures to be submitted. • By submitting the Online Capricorn Classifieds Ad Form, you acknowledge that the price of any goods or services shown is inclusive of GST.
Mechanical Workshop, Melbourne VIC Established in 1962 with current owner for 12yrs, located in Bayside, mechanical service & sales, very prominent loc. Owner retiring. Ph: 0411 460 460
Mechanical Workshop for sale, Outer Eastern Melbourne. Specialized in German Cars, Family Business for 30 years, Owner retiring, Huge potential too expand, Long lease available, Call: Klaus 0466527707
Mechanical Workshop, Caboolture Qld Fully equipped 2 post hoist workshop Includes Stock and Equipment. RACQ Approved and Bosch Approved. WIWO $70,000 Shed not included. Shed Leased Phone 07 5408 6004 to Discuss
Panel Repair Shop - Palmerston North Well-equipped panel repair shop. Established over 55yrs. Owner retiring. Chassis machine, measuring system & hoist etc. Loyal customer base. Close to town centre. Ph Terry 0274844758
Auto Electrical Workshop, Orbost VIC Established 40yrs. Strong local customer base including government, farming, and construction. 3 bays, hoist & pit. Long lease available. Would suit sea/tree changers. $75K + SAV Ph 0407 543 290
Complete Auto Care Bundaberg Established 2008 RWC AIS 9169 All mechanical including air conditioning Plant and equipment approx. $165,000 included in sale price $295,000. Turnover approx. $720,000. OWNERS RETIRING. Phone 07 4152 2460.
Mechanical Workshop for sale Brisbane Qld Service and repairs. Fully equipped workshop with 2 working hoists. POS Systems in place. Room for growth. Owner moving to Sunny Coast. $85k Enquiries 0402 834 129 Automotive Workshop Eastern Suburbs Melbourne Established business of 35+ years. Mechanical servicing and repairs. Prominent location close to major shopping centre. 4 Hoists & equipment Expression of interest Call Russell 0417339617
Conditioning Business for sale Same owner for 36 years Large client base Suit motivated tradesman Great earner Realistic sale price and reasonable rent on the Gold Coast QLD call Kim 0447612106 2012 Wheel alignment machine, program current to 2020, All equipment in cabinet, head, monitor, computer, printer. Good condition. Works great. Calibration stand included. $5000. Phone (07) 54625424
Mansfield Motor Panel Repairs for sale Victoria Want a lifestyle change, mountains, lake & snow original buisness in thriving town, 90% insurance no competition, excellent profits, freehold available or lease. 5 Early Street, Mansfield VIC 3722. 03 5775 2156 Mechanical Workshop, Port Macquarie Great opportunity to take successful business to the next level. One of town’s longest serving and best located workshops – four hoists, extremely well equipped, call Maca for more info. 0414 850 365. Autoparts business for sale Northern Beaches. Well established family run business of over 40 years. Owner retiring. Strong client base with loyal customers for on going business. Great potential for expansion. Call Joe 0411782745 Autosense Car Centre. Geraldton WA. Fully established, highly profitable, superb clientele, perfect coastal lifestyle, 2 hoists, brilliant workshop location, proven long term figures but growth potential huge if wanted. Email autosense@m2data.com.au
How to Advertise in the Capricorn Classifieds
1. Send an email to ignition@capricorn.coop with the following details: your Member number, business name, contact details and details of your advert (no more than 30 words). 2. Capricorn must receive your classified advert by the 16th of the month preceding the publication month. If we have not received your classified advert by this date it will be published in the following month depending on the number of adverts received. 3. Check out your advert and fellow Members’ classifieds in the next edition of Ignition.
Email: ignition@capricorn.coop Publisher's General Disclaimer All information, material and content contained in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information you should consider the relevance of it to your own circumstances and, if necessary, take professional advice. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including, without limitation, any third party supplier advertisement in respect of which Capricorn merely acts as a conduit) included in this edition of Ignition. To the fullest extent permitted by law Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: (i) reliance on material in Ignition; or (ii) inaccuracy, error or omission in material in Ignition. Capricorn, Stronger With Capricorn, Ignition, Capricorn Travel, Capricorn Mutual and the boomerangs device are trademarks or registered trademarks of Capricorn. If you have any news or information that you think would be of interest to your fellow members, please send the information to Capricorn via email ignition@capricorn.coop.
Capricorn Society Limited ACN 008 347 313 Postal Address: Locked Bag 3003, West Perth WA 6872 Registered Office Australia: 28 Troode Street, West Perth WA 6005 Phone (08) 6250 9500 General Enquiries 1800 999 233 Members 1800 327 437 Suppliers 1800 005 322
N R O C I R P CA
Spot the Difference Find them all and win! 1st Prize: 4,000 points 2nd Prize: 2,000 points
LAST MONTH'S ANSWERS LAST MONTH'S WINNERS 1st Prize - 4,000 points Robbie's Mechanical Services 2nd Prize - 2,000 points Porirua Motors
Email your answers to ignition@capricorn.coop before the 25th of August. Winners will be selected by a lucky hat draw of correct entries. Please ensure you include your Member number and email address when submitting your entry.
WORD Hunter
Find the 16 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!
TASMAN
CYBERCRIMINAL
SELLING
SUSTAINABLE
RETURNS
CHANGES
NATION
COMMUTING
RISING
REPORT
PROFITS
SUCCESSION
REVENUE
GOALS
TOYOTA
WORKSHOP
CAPRICORN IGNITION AUGUST 2021 2 7
We know you’re worth more. And we’ve got the data to prove it.
Download Capricorn’s State of the Nation Report - A report on the industry, by the industry, for your workshop. Available now at capricorn.coop/caphub TM
