TUNE-UP MANAGEMENT
By attending Canada Night 2024, you can experience the following:
• Network with Canadian auto care professionals under the stars in Las Vegas
• Sponsorship opportunities to boost your brand such as VIP cabanas to host current and new customers
• and more!
Canada Night takes place on November 5th, 2024, at the Palazzo Pool Deck of The Venetian® Resort during the AAPEX and SEMA trade shows.
Buy a ticket today
Publisher | Peter Bulmer (585) 653-6768 peter@turnkey.media
Managing Editor | Adam Malik (647) 988-3800 adam@turnkey.media
Associate Editor | Derek Clouthier
Contributing Writers | Greg Aguilera, Zakari Krieger, Erin Vaughan
Creative Director | Samantha Jackson
Video / Audio Engineer | Ashley Mikalauskas, Nicholas Paddison
Sales | Peter Bulmer, (585) 653-6768 peter@turnkey.media
Delon Rashid, (416) 459-0063 delon@turnkey.media
Circulation | Delon Rashid, (416) 459-0063 delon@turnkey.media
Production | Tracy Stone tracy@turnkey.media
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THE BUSINESS MANAGEMENT GAP
No one needs to tell you that the automotive aftermarket is seeing rapid change. But a group of your key partners is concerned that independent repair shops aren’t preparing their business for such change.
Whether its technological advancements or evolving business practices, these winds of change are reshaping the industry. Businesses must adapt or risk being left behind.
Recent findings from the CARS Annual Jobber Survey highlight a critical issue: Your jobber partners believe there’s a significant gap in business management skills among automotive service providers.
Let’s look at the skills gap. And no, not technical skills but business management ones. The survey revealed that your jobber partners believe there is a lack of proper business management procedures. They picked it as the most common mistake ASPs make, with one-third of respondents highlighting this issue. This deficiency manifests in various ways, from misunderstanding profit margins to inefficient inventory management. Such gaps directly impact profitability and customer satisfaction, underscoring the need for comprehensive business training alongside technical skills.
This can be resolved with training. Jobbers are calling for a stronger emphasis on training, continually pressing the need for enhanced business management skills. More than 60 per cent of jobbers reported that ASPs claim they’re too busy to participate in training. Fewer than a quarter said they can expect the best of the best shops to show up.
There are real difficulties in engaging in training activities, exacerbated by staffing shortages and the logistical challenges of accessing in-person sessions, especially in rural areas.
Furthermore, the need for technical training cannot be overstated. As one jobber noted, “The constantly evolving knowledge needed to complete the total repair isn't being learned by all techs, which puts the shops at a disadvantage.” This sentiment is echoed across the industry, with many recognizing that without continuous learning and improvement, ASPs will struggle to compete with dealerships.
Jobbers are offering their help. Facing a challenge? Let them know. “We're here to help. But we can't if we don't know there's a problem. Speak up. We're listening,” one survey respondent said.
They also emphasized fostering a culture of continuous improvement. Encouraging a mindset that values ongoing education and skill development is vital. This includes not only technical training but also business management, customer service and other critical areas.
“Take advantage of training. There is lots available that will help the bottom line, which is what everyone wants,” another urged.
And strengthen your partnerships with your jobber partners. They are keen to support their ASP partners, but effective collaboration requires proactive engagement from both sides. Many lamented that they are constantly told by their shop parts that they’re too busy to meet.
President & Managing Partner | Delon Rashid Head of Sales & Managing Partner | Peter Bulmer
Corporate Office
48 Lumsden Crescent, Whitby, ON, L1R 1G5
To thrive in the competitive landscape of the automotive aftermarket, shops must address the business management skills gap head-on. By investing in comprehensive training and fostering strong partnerships with jobbers, ASPs can build more resilient and profitable businesses.
With many challenges ahead, being well-prepared will ensure being ready to seize new opportunities and succeed.
Adam Malik Managing Editor, CARS
We want to hear from you about anything you read in CARS magazine. Send your email to adam@turnkey.media
WHAT YOU CAN’T DO AFTER YOU’VE QUOTED A CUSTOMER
I disagree with this sentiment. We’re not salesmen. We provide a needed service. A little empathy and reassuring that the job is necessary, the car is worth the investment, and a brief explanation of the repair being more financially feasible than other alternatives – i.e. replacing the car, or ignoring the problem and making it worse, is what I believe customers are looking for. Not a hard close. If the work is really necessary, and our price is fair, there should be no salesmanship needed. And in today's market of never-ending appointments, I honestly do not have time to argue if someone is just trying to save a nickel. You’re never going to please those people. Charge your inspection fee and move along to the person beating down the door for service.
Geoff Walton, Grant Street Garage
WHY MOBILE REPAIR IS OUTPACING DIFM
We have a mobile service, but in most cases, the vehicle has to come to the shop anyway for the repairs due to a variety of conditions including of the difficulty of doing the repair on-site. The job, in these cases, has to be put on a lift to remove/replace the necessary parts/components in order to access them. I agree that many repairs/ procedures can be done mobily, but major or challenging ones are more efficiently done in the shop.
Glen Hayward, Good Works Auto Repair
Here in Ontario, you can’t find enough skilled help in a shop, let alone doing mobile repairs out in the cold, snow, rain etc. I can see how some of the mobile programmers and diag guys do it, but they usually come to a warm shop to do the work in. The mobile tire change people? Not a fan either. Consumers should have their vehicle done in a proper garage or shop setting so critical mistakes are not made out freezing in the snow in somebody's driveway.
Vinnie Klimkosz, Vinnie’s Mr. Fixit
THE TECHNICIAN SHORTAGE MAY BE WORSE THAN YOU THINK
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As someone who works as a technician, I have to say I cannot blame people for going into the white-collar fields. Yes, right out of school I was making more money than my college-educated counterparts, but as the years have gone on most if not all of them are making 50-100% more than me.
In addition to compensation, there is a clear cultural difference. Office workers are treated as professionals (generally) and have comfortable working environments, work from home partially and do not have to spend a dime of their own money (yes, I am talking about the $100-$300 weekly tool payments I had for years) to complete the job.
We can talk all day about vehicles being big computers and having all sorts of technology, but at the end of the day, you have to be equally interested in getting dirty, hurt, bleeding and working on things that were not designed to be easily serviceable and are incredibly frustrating. Moving jobs consistently and working my way into management was the only way I was able to feel respected, treated as a professional and not in pain at the end of a work week.
Not everyone is cut out to be a manager or sit at a desk all day, but there are certainly more lucrative trades that do not require as many different skill sets or capital to get started.
Justin Flannery, automotive service technician
Scan the QR code for the latest and more in-depth news online.
CANADIANS LETTING MAINTENANCE SLIDE
CANADIAN VEHICLE OWNERS are continuing to ignore oil change needs, updated research has found.
The Automotive Industries Association of Canada released its latest look at consumer behaviour. It sheds light on where Canadian vehicle owners are deficient in their knowledge and where opportunities are for the automotive aftermarket.
Free for members, it examines the habits of Canadians across various segments such as age, income, region and type of vehicles they own. The report is $199 for non-members.
The report, Canadian vehicle owner’s attitudes towards maintenance and repair, shows that Canadians put oil changes at the top of the list of services they are letting slide. It’s followed by checking oil and a trio of tire related needs: Changing them,
checking wear and checking pressure.
About 2,000 Canadians were surveyed in March 2023. They said they spent almost $400 on maintenance plus about another $650 on repairs.
AARO PARTNERS WITH AUTO SALES PLATFORM
THE AUTOMOTIVE AFTERMARKET Retailers of Ontario (AARO) announced a partnership with EEZE, a platform for peerto-peer auto sales.
The move was made to enhance the safety and reliability of private vehicle transactions in Ontario. The collaboration leverages AARO’s network of over 450 independent repair garage owners and 10,000 technician members across the province.
HAVE
These shops, many of which are licensed inspection stations, will facilitate the safety inspections and certificates required for registering pre-owned vehicles sold by private sellers. This initiative aims to provide dealer-level service in a market traditionally dominated by private transactions, thereby increasing consumer trust and simplifying the process.
“We are excited to work with EEZE to bring this innovative platform to our members,” said Eric Mileham, AARO chair. “This is a significant step forward in our efforts to unite the independent automotive aftermarket and tackle industry challenges, particularly in safeguarding consumers.”
TOP INDUSTRY AWARDS HANDED OUT
THE AUTOMOTIVE INDUSTRIES ASSOCIATION of Canada has announced the winners of two of its highest honours for 2024.
Bill Hay has been named the Distinguished Service Award winner. Young Professionals in the Auto care sector (YPA) Young Leader of the Year Award went to Patrick Verriet.
The winners were announced ahead of AIA Canada’s National
Conference where both were officially presented the award.
The Distinguished Service Award is the highest honour from AIA Canada. Hay is a well-known figure in the Canadian auto care industry.
This award acknowledges an individual member’s exceptional service and leadership that have significantly advanced the industry’s growth and development across Canada.
Hay is currently the president of The E.R.I. Group.
The Young Leader of the Year distinguishes a youthful industry leader exemplifying innovation, leadership, and an unwavering commitment to the auto care sector. Patrick Verriet served as chair of the YPA Committee and is the business development manager for Canada at Mann+Hummel.
QUALITY THE PROS COUNT ON.
A Leader in Fuel Management
Delphi is driven to apply its OE expertise and technological leadership to engineer each fuel module with stringent standards that deliver the highest level of performance.
With over 85,000+ applications, you can install Delphi parts with confidence.
availability and accessibility to quality automotive parts.”
The move is part of the company’s growth strategy, its announcement added. When O’Reilly Automotive announced it had bought Vast-Auto, expansion was pointed out as a key motivator.
“This is a significant milestone and fantastic opportunity for Vast-Auto and will be a catalyst to accelerate our expansion throughout Canada,” president and CEO Mauro Cifelli said in December.
The move also fits in the company’s mission of supporting its customers across Eastern Canada, the announcement noted.
“This expansion not only emphasizes our dedication to meeting the evolving needs of our customers but also reflects our ongoing commitment to driving excellent customer service,” Cifelli said in the announcement about the new Oakville warehouse.
HOW BIG THE CONCERN OF RIGHT TO REPAIR IS FOR SHOPS
THE VAST MAJORITY OF INDEPENDENT repair shops in the U.S. put the right to repair issue at the top of their list of concerns for doing business going forward.
The Auto Care Association — the U.S.-based national body representing sectors of the automotive aftermarket — recently released findings from a nationwide survey of repair shops that underscored the hurdles faced by independent repair facilities in servicing vehicles, often compelling them to decline business.
Key findings reveal that 84 per cent of independent repair shops rank access to vehicle repair and maintenance data as their top business concern, outranking issues such as technician recruitment, retention and inflation.
Furthermore, 63 per cent of these shops face difficulties in making routine repairs daily or weekly due to data access restrictions.
Notably, 51 per cent of shops reported having to send up to five vehicles per month back to dealerships because of these restrictions.
On the Road
Worldpac Supplier & Training Expo
April 24-28, 2024
Nashville, Tennessee
With nearly 400 hundred classes, a two-day expo, an emotional keynote and country-music send-off, the Worldpac Supplier & Training Expo has something for all of the 3,355 people who made the trip to Nashville. Training at the Gaylord Opry Resort and Convention Center ranged from business management to technical, offering shop owners, service advisors and technicians the ability to get what they needed to enhance their careers and business. Celebration Night featured a performance by Big Little Town at the Country Music Hall of Fame and Walk of Fame Park.
Carolyn Coquillette, Earthling Automotive and ShopWare
Michelle Rozen speaks during the women’s luncheon
Worldpac's Bob Cushing with Marcus Luttrell, retired navy Seal, during the keynote session
Proudly brought to you by
CLASS ACT
CARS will regularly feature automotive schools across Canada. In this issue, we learn more about Fanshawe College If you’d like your school featured, reach out to adam@turnkey.media.
Name of school:
City:
Head of program:
Tell us about your school. What do you offer? How many students do you have?
Fanshawe College’s School of Transportation Technology and Apprenticeship provides students with a comprehensive education in vehicle maintenance and repair via our Motive Power Technician – Automotive, Motive Power Technician – Diesel and Green Vehicle Technician diploma programs, as well as an Automotive Service Technician apprenticeship offering. The school also provides training in several other areas such as Agriculture Equipment Technician, Auto Body Repair, Truck and Coach Technician, Automotive Service Management Automotive Sales and Pre-Technology.
What unique experiences are available to students?
Fanshawe’s transportation technology programs are delivered from the Centre for Applied Transportation Technologies, an advanced facility with cutting-edge shops, tools and diagnosing equipment that is equivalent to or exceeding what graduates will find on the job.
Programs also provide students with an additional focus on management skills, which allows graduates to work in service administration, research and development, management and teaching positions, with many graduates owning their own businesses.
How
are you preparing today’s students to be tomorrow’s automotive service professionals?
Skilled technicians, who need to know the basics of everything from seatbelt systems to the latest diagnostic equipment, are in great demand. Fanshawe graduates are uniquely skilled to work for equipment manufacturers, automotive, truck and heavy equipment dealers, in research and development, management, teaching positions and beyond.
Fanshawe College
London, Ontario
Carl Mendonca, associate dean, School of Transportation Technology and Apprenticeship
Fanshawe is also excited to launch a new Green Vehicle Technician program, designed to provide students with exposure and training on the latest in green vehicle technology. This will help ensure students graduate with a skill set that will both meet the demands of an emerging sector of the industry, while supporting the development of a sustainable future in transportation technology.
Why is this an exciting time to be a student in an automotive trade school?
The automotive industry is undergoing a transformative shift towards electric vehicles, automation and smart technology. Students now have the unique opportunity to learn about cutting-edge advancements, developing a skill set that will position them at the forefront of a rapidly evolving industry. This shift in technology coincides with a significant shortage of skilled trades workers in all sectors, providing graduates with endless career possibilities.
A special section dedicated to showcasing automotive trade schools
Stats that put the North American automotive aftermarket into perspective
129,034
The Vancouver International Auto Show set a new attendance record for its five-day event, the first after a four-year hiatus. It set a single day attendance record of 39,823 guests.
Vancouver International Auto Show
$815
Survey respondents overwhelmingly said they will only buy EVs in the future, with Tesla owners being more likely to continue purchasing EVs.
84%
Right to repair is top of mind as the biggest concern for U.S. shop owners, ahead of technician recruitment, retention and inflation.
Auto Care Association
The amount new car owners spend on upgrades in the first year of their purchase while 44% of all buyers in the U.S. splurge between $250 to $1,810 annually.
International Drivers Association
16,618 km
Traditional internal combustion engine vehicles in Canada travelled fewer kilometres than battery electric vehicles in 2023. BEVs travelled 19,027 on average. S&P Global Mobility
2017
Sales of gas-powered cars peaked in Canada in 2017. EVs represented just 1% of annual sales. Now, they’re more than 10% of new vehicle sales.
440 Megatonnes
58%
Kilometres travelled in Q4 2023 were down significantly from the same time the year before Last year’s middle quarters also saw a reduction from 2022.
AIA Canada
$70,000
The top-end total cost for a shop that wants to be able to perform ADAS recalibrations. Most shop owners estimated costs maxing out at $55,000.
Roland Berger
18.7%
Mass-market vehicles saw a large jump in purchases in the first quarter of 2024. Conversely, luxury vehicles dropped 7.3%.
DesRosiers Automotive Consultants
thing that you want to do is build a plan or stare at numbers that nobody ever taught you how to understand.
My advice is to not worry about any of that. Just look at the hours sold per day and the gross profit that you are making. That’s the start. As a single operator, if you’re not making 8 hours per day minimum, then you are spinning your wheels on other stuff. It's time to change what you are doing.
Path
The first step created a gap analysis. In its simplest form, it shows where the path to expansion might be. Look at the potential for replacing you for the tasks that waste time so that you can focus on what you do for the business. What are those roles? What are the tasks associated with it? This will tell you the type of person you need in your shop.
So that means you need to find someone with experience in that role. Emphasis on ‘experience in that role.’ Simply put, you don’t have the time to train a new person in what they need to do.
train them on your way of doing business. This means daily communication to go over the operating processes you already know in your head. People are not mind readers.
Upgrades
As your solo venture expands, so must your facility and resources. Invest in upgrading equipment and tools to support heightened demand and production capacity. But equipment purchases must make business sense. Don’t go all-in for a piece of equipment that you are going to use once.
You might need to enlarge your physical space by leasing a larger garage or new commercial property to accommodate your growing operations. It also might be as simple as taking a good look at your facility and giving it a coat of paint to elevate the look and feel for your upcoming larger customer base. As a first step, this makes a world of difference.
In order to pay for this, you need to upgrade and broaden your customer base. Extend your market to propel growth. Invest in targeted marketing and advertising endeavours to reach your demographics and generate leads. This can be done on social media channels such as Instagram or Facebook. It might be pairing up with local businesses to offer your services to them and their customers.
You don’t have to do it all yourself. Your existing customer base constitutes a priceless asset that can propel sustained growth. Foster customer loyalty by delivering exceptional products, services and experiences. Nurturing robust relationships with your customers cultivates brand loyalty and advocacy, aiding long-term growth and profitability.
Have your customers be your promoters by posting about their experience on Facebook and tag you, for example. Google Reviews are also important. Do not underestimate the power of this step.
This is a very look at a complex subject. But if you’re struggling with your current business, then looking to expand could give you more of that satisfaction you desired when first starting out.
Would you like to have a con dential conversation about how Mister Transmission might help you MAKE THE SHIFT into retirement?
But remember, you are going to need to Greg
Aguilera is a director of IAC Canada, an organization dedicated
1-800-373-8432 or email me direct at tony@mistertransmission.com
MASTERING BUSINESS MECHANICS
Jobbers dive into how shop owners can drive their business forward, while also offering insights into how they’re working to serve ASPs better // By Adam Malik
The livelihood of independent automotive repair shops is facing threats from multiple fronts. As vehicles continue on a path of technological advancement, threats like right to repair and dealer growth in traditional aftermarket circles put added pressure on the independent aftermarket to ensure it’s at the top of its game.
But from the point of view of jobbers, many of their automotive service provider partners — those of you who are reading this very magazine — are not putting in the effort to stay ahead and fend off the many risks at play.
The aftermarket can sell itself as being superior to the dealer experience in many ways but the J.D. Power 2024 U.S. Customer Service Index Study found that consumers aren’t concerned enough to be moved. Even as parts supply became delayed, technician shortages took a toll and wait times increased, customer satisfaction with dealership service experiences showed improvement this year.
“Dealers’ DIFM share bottomed in 2014, and they are now rebuilding their repair market strength,” said the report, DIFM Battle: Independents vs. Dealers from Lang Marketing
Dealers have put a focus on the do-it-for-me segment of the automotive aftermarket. In a separate report, Lang Marketing further noted that service station and garage market share has
been on the decline.
“Their evolving service bay strategy included the addition of quick service lanes by many dealers and a growing dealer focus on used vehicles, which have boosted their DIFM volume,” Lang noted in its report, SS & Garage Spinout Alters the DIFM Market
As many industry observers and coaches have observed, the aftermarket is in need of greater training to keep up with the rapidly evolving advancements in current vehicles. Failure to do so will push vehicle owners into the dealership’s waiting bays.
That sentiment was echoed by jobbers who called out the lack of business management skills and interest in training among their ASP partners in the CARS Annual Jobber Survey.
"Most shop owners are excellent mechanics, but many have never had any formal training in business management," noted one survey participant.
The survey was sent out to jobbers made up of readers from Jobber News, the sister publication of CARS. The first question asked about was the most common mistake their ASP partners make. Easily at the top with one-third of respondents agreeing, it was a lack of proper business management procedures.
Most respondents shared a similar feeling: This skills gap manifests in various ways, from misunderstanding margins to inefficient
What is the most common mistake you see your ASP customers make?
Do ASP shops take the need for management and technical training seriously enough?
inventory management, which directly impacts both profitability and customer satisfaction.
This translated over to a lack of training among ASPs. While fewer than a quarter could count on the best of the best to show up to training seminars, three in five (62 per cent) reported that they’re rebuffed by their ASP partners who say they’re too busy to attend such events.
“The constantly evolving knowledge needed to complete the total repair isn't being learned by all techs, which puts the shops at a disadvantage,” one respondent observed.
“Shops and employees are often not motivated to update and improve their skills. There's a lot of apathy,” another noted.
A pair of respondents pointed out that many technicians are older, nearing retirement. Their interest in learning new skills is low.
“The average age for my techs is certainly getting older; not interested in learning new,” one of them said.
Others, however, sympathized with shop owners and technicians. One noted that if you’re in a rural area, it’s difficult to get training locally.
“For us, we are too remote for most in-person training and online just doesn't seem to have the same draw,” one observed.
This was a concern for Mike Howard, manager of garage
How often would be an ideal time to meet with your shop partners to discuss business startegies?
operations at 2023 Shop of the Year Art Turney’s Garage. Being in Peterborough, Ontario, about two hours outside of Toronto, he noted that it’s hard to get training while being so far out of a major centre.
Timing is another issue — and one where jobbers feel for shop owners.
“Staffing shortages are causing the current workforce to put in more time and after-hours training is not as important as being able to relax and unwind to many,” one respondent highlighted.
And while one respondent above noted that online training isn’t much of a draw, another pushed for more webcast training that can be done during convenient times throughout the workday.
So while jobbers are concerned about the lack of shop training taking place, they understand the barriers. That said, jobbers also want to see more initiative.
And that extends beyond technical training — shop owners need to get solid business training and understand more than just the basics.
“It is not easy to understand the difference between markup and gross profit,” one noted. “Many people get it wrong and think they are the same.”
Respondents called for shop owners to seek out opportunities. “They should take a course at college or online,” one suggested.
PARTS QUALITY
Shops have been regularly complaining about parts quality. The most recent complaints were outlined in the Jobber News Annual Shop Survey. So the question was put to jobbers: How are they ensuring parts meet the quality standards shops want?
Most answers matched a common theme: Jobbers only want to sell shops quality parts. They will push shops to buy better parts. But at the end of the day, what they sell depends on what shops want to buy.
“We always suggest and have a premium offering for all applications,” one respondent said before pointing out “We also have your price-conscience parts available.”
And it seems there’s a lot of price-consciousness taking place, according to jobbers.
“Shops do their best [and] use cheaper parts to keep customers [happy],” observed one respondent.
“It's a fine line. Some shops like cheap, some like good parts,” said another.
For the majority, jobbers aim to keep good quality parts in stock, though it’s not easy.
“If we have a ‘white box’ line, it is top quality,” one jobber said. “If we don't feel it is a premium, we don't put it in. Additionally, we focus on stocking top quality premium brand name parts so we have less warranty. Getting wellpriced premium parts is a challenge sometimes and a balancing act. Price does matter.”
Another did acknowledge the challenge of poor parts quality circulating these days.
“We have no way of sourcing ‘better’ parts. Aftermarket is certainly suspect quality. I have been in the jobber industry for 43 years and used to feel many lines we sold were an improvement to OE but I certainly can't say that about the offshore product we sell today. With online pricing becoming the benchmark, the race to the bottom will likely ensure quality will keep sliding as well.”
Another pointed out that they’re always pushing their suppliers to not just make sure premium parts are meeting quality standards but also everything they provide.
“We're offering parts that we know are of good quality first, then second line that we have a good record with,” explained another jobber. “Finally, only if price or availability dictates, we will offer a brand we don't have a history with. Sometimes if we have a bad history with a brand and there is not an available alternative, we will opt not to sell the part at all. In doing so, we save the ASP, vehicle owner and ourselves a lot of trouble.”
REGULAR MEETINGS
Shops should feel that they have the opportunity to raise concerns with their jobber partners, especially when many are making an effort to meet regularly.
However, jobbers pointed out that it’s often difficult to meet with their ASPs because of limited availability on the shop’s side.
“The time and interest on their part is often lacking,” one
What has been your biggest challenge over the last year?
What will be your biggest challenge / what will have the biggest impact on your business in the year ahead? VS LAST YEAR
respondent pointed out. “We should be discussing their shop needs (equipment and training), as well as ways in which we can both work to improve our relationship and help each other.”
Another would like the opportunity to talk about service, features and program benefits. But “Availability is probably the main stumbling block currently,” they said. “Everybody is busy.”
Some jobbers will try to have their outside sales team talk to shop owners. But that can prove difficult. Indeed, shop owners are busy during the day and too tired after, one jobber noted. “The motivation is not there to schedule a meeting that works. Only when there is a problem does the motivation to meet arise.”
Most jobbers (33 per cent) said they get out to their shop customers quarterly, while quarterly and monthly meetings were each the preference of about a quarter. Fewer than one-in-five said they do so annually.
They would like to talk to their shop partners more about their business goals and strategies to make sure they’re offering a valuable service that matches their needs. “And I'd like to know before any misalignments become a problem or an opening for my competition,” one noted.
Jobbers are also open to talking about training, products offered, margins, prices, competition and more.
But, as one respondent highlighted, they find the shop owner without the technician background to be more receptive to not just meetings but being receptive to new ideas.
“The non-tech owner is more receptive to info and new ways to grow and get better,” they said.
SELLING TO THE DIYER
A common and ongoing gripe from shop owners has been the fact that a consumer can walk into a retailer and buy a part for the same price as the shop. But the shop will buy it, charge a mark up and get negative feedback from the customer.
We asked jobbers to address this area of concern. One emphasized that there’s no simple answer.
“Starts with manufacturers and the very different deals that they make with different groups and different price sheets in different regions and countries. Speaks to different business models [that] are
marketing the products,” they said.
And while the manufacturer will say they don’t dictate at what price the product is sold, “I have been told that my online site will never work because I do not sell wholesale online and offer free shipping,” the jobber said. “I also make sure that my wholesale customers can make a decent margin if they sold it for the same as my counter price.”
That means figuring out if a jobber wants to be an online seller, a brick-and-mortar wholesaler or a retailer. This respondent called on manufacturers to protect jobbers that service local shops “by not selling to outfits that destroy traditional marketing chains.”
This respondent said they have dropped manufacturers where online prices are cheaper than what they have on their shelves.
“Manufacturers have to decide who they sell to based on how their products are represented. The playing field is not really fair if a jobber has to compete with a large WD or online reseller who is marketing directly into any market. It will eventually kill local brick and mortar stores.”
Nevertheless, there are jobbers out there committed to making sure their shop customers get the best price.
“We strive to protect our relationship with our shops as they are the most valuable customers we have in terms of purchasing and future growth,” said one respondent who noted that it’s rare for a customer to get the same price as a shop customer.
Another said they have a retail price and one for the pros. “The shop is still my first concern,” they said.
One respondent pointed out they wouldn’t do this and if they did, they’d certainly hear about it.
“Doing this is a big no-no. We have proper pricing structures in place so this does not happen, or at least never happens,” they said, “Yes we have been caught before but usually there is a reasonable explanation for the sale. Our top 300 customers should never run into this happening.”
Blocking customers from bringing in their own parts — presumably one they purchased from the local store — would curb retail sales on its own, one respondent noted.
However, “there is a market for DIY,” another jobber pointed out. “Not a fan of customer buying parts [and] taking [them ] to
WHAT’S MOST IMPORTANT?
When asking what’s most important to the jobber-shop relationship, there’s a gap.
In the AnnualShopSurvey , shops said product availability was most important (45%) with relationship second (26%). When jobbers were asked, they put relationship at the top of the list (52%) with availability second (33%). Everything else, from location to price to program, were distant thoughts
WE ASKED: WHAT PIECE OF ADVICE WOULD YOU GIVE YOUR SHOP CUSTOMERS GOING FORWARD?
THEY SAID:
Take advantage of training. There is lots available that will help the bottom line which is what everyone wants. If not taking any, ask what is available. You may be surprised with what is and the results of taking different training offered and implementing a few key things.
Don't compromise quality just because you're thinking you are doing your customers a favour by saving them a few bucks. Using cheap parts to save money very rarely works out well.
A good relationship with a parts store is worth spending an extra $5 on parts. Smaller parts stores appreciate your business much more than large corporations/franchises
Don't focus on just price when picking a supplier. Price, quality, inventory, service, programs, honesty and relationships built on trust should factor into it. If price is the only driver, then don't expect much else because it is not feasible to offer other services if there is no profit, at least not long term.
Try to stay on top of pricing changes, adjust certain charges on your invoices when needed. Charge for your service, quality of your work and maintain that relationship with your customers. You will be surprised most customers just want to be treated fairly and with respect and a little higher price on that door rate then the guy next door doesn't matter.
Talk to your parts supplier, learn the struggle they go through to service the shops, then work together to build both businesses
Social media will be required for advertising and if you want to stay in the business you will need to upgrade everything in your business. New vehicles will be part of your world soon and they will always pose issues.
We are a partnership, we need each other to both be profitable. Ruling with an iron fist doesn't always get the best results.
How have your inventory levels been the last six to 12 months? How satisfied have you been with being able to meet customers' needs?
81%
19%
ASP's place to get installed but garage management consultants are now recommending a 60 per cent margin instead of getting labour rates up. Cannot buy labour at a parts supplier or online.”
That all said, one respondent simply commented, “Why not if they want to buy them?”
CHALLENGES
Jobbers have seen positive gains in their issues from a year ago. Unfortunately, a new one in particular has jumped to the forefront.
In 2023, 53 per cent of jobbers reported that parts availability and the supply chain were their biggest issues. This year, that has dropped to 38 per cent. Staffing concerns also fell — what was a top challenge for 35 per cent last year, that has dropped to a top concern for 19 per cent of jobbers.
On the flip side, parts price challenges have grown, matching parts availability at 38 per cent, growing six-fold in concern over the last year.
That was something jobbers saw coming. When asked last year to predict their top challenge going forward, parts prices (35 per cent) was the top pick. And that’s a concern that is only going to grow this year — nearly half (48 per cent) predict prices will be the top concern.
“Trying to compete with the online discounters is going to get more challenging as time goes on,” observed a respondent.
“Prices need to stabilize and be more consistent to regain customer confidence,” said another.
Meanwhile, they expect parts supply to continue to ease with 24 per cent expecting it to be a top issue going forward.
Indeed, 81 per cent reported that their inventory levels have sufficiently recovered and they’re able to meet customer needs.
“For the most part [customers have] understood, but there have been numerous discussions to make sure we both understand each other's perspective on the matter,” one respondent said.
THEY WANT YOU TO KNOW…
There’s much to the jobber business that store owners feel that are missed by their ASP partners.
When evaluating your jobber, look at the whole package, one urged. “Don't look just at price, look at service as well — time of deliveries, credits done efficiently, etc.”
Many noted that they have little control over prices, so don’t take it out on them or, especially, counter staff.
“We get very little say in the prices that are set. We are constantly working to see improvements for them,” one said.
“We all need to make a profit all costs are going up. ASPs do not like their customers shopping around but they do it constantly,” said another.
“We are not trying to gouge them on pricing — we need profit also,” one responded. “We are going as fast as we can on our deliveries while still trying to be efficient.”
And each shop is unique. Your jobber is trying to meet the demands of various clients. “We spend a lot of valuable time trying to keep on top of each and everyone's specific needs, maintain a good relationship with all. Service and relationship goes along way,” one pointed out.
One thing that can’t be lost: Everyone is a partner and needs to act as such.
“We want and need you to succeed and we need you to want us to succeed,” a jobber said. “It is definitely a two-way street. And if it isn't then the business will not last.”
And when you need help, ask for it, one jobber urged. “The thing that customers are often good at, but could be better, is letting us know when they face challenges. We're here to help. But we can't if we don't know there's a problem. Speak up. We're listening.”
ATE Brakes’ quiet operation and reliable performance have made them the OE choice of many European carmakers. Maybe we should make a little more noise about that. ate-na.com
GOING BEYOND THE TRANSACTION
The 80/20 rule may sound like a great rule of thumb but it can put distributors in a precarious business situation
By Zakari Krieger
In the automotive aftermarket, there's an ongoing debate between shops and distributors about the adoption of the 80/20 rule.
This principle aims to enhance service and provide more value beyond just selling parts. It focuses on maximizing relationships with specific jobber partners to drive business value, extending beyond the core function of part sales and can better serve clients and create a more constructive value proposition.
Shop owners often express concerns about the perceived value of their relationship with jobber partners, feeling undervalued despite their loyalty. However, this perspective might overlook key factors.
While corporate initiatives influence some decisions, the primary reason lies in the necessity for a diversified customer base. Relying heavily on a few shops is risky business; jobbers need to spread their engagements across a wide range of clients to mitigate risk and ensure long-term stability. Let’s explore the thinking that goes on behind the scenes.
My experience as a distributor owner has shown that fostering loyalty and collaboration with suppliers can lead to more open discussions on continuous improvement efforts, ultimately benefiting both parties.
In the past, we operated under a certain-model approach, competing to serve a wide range of shops. This strategy required us to cater to a diverse client base, each with varying needs and expectations.
However, when we transitioned to working with NAPA, we noticed a significant shift in our business dynamics. The service-based model that NAPA promotes proved to be more aligned with the needs of our core clients, rather than entry-level shops.
The NAPA program emphasized service and quality over pricing, which initially seemed
like a disadvantage for shops operating on tighter margins. However, this focus on service enabled us to establish stronger, more meaningful relationships with our clients. We were able to engage in more substantive conversations about continuous improvement and long-term collaboration, rather than just negotiating prices.
Adopting the 80/20 rule — focusing on the 20 per cent of clients that bring in 80 per cent of the business — allowed us to become more efficient and profitable. This approach streamlined our operations, enabling us to allocate resources more effectively and prioritize our most valuable clients. However, this shift also presented challenges, particularly in terms of market pressures dictating pricing.
and trust that maximizes the profitability of the relationship for both parties. Our business was built and rebuilt on that premise. I believe there sometimes needs to be a reminder to both shops and the jobbers about how strategies from the 80/20 rule can create a stronger ecosystem together learning from each other on how to become more successful in their own crafts.
Ultimately, the goal is to strike a balance that leverages the strengths of both the 80/20 rule and a diversified client base in terms of business strategy. This, however, is often what comes in the way of really developing collaborative business strategy together above the transactional relationship.
While focusing on our top clients made us more efficient, it sometimes came at the expense of our core shops. Market dynamics, especially competitive pricing pressures, made it difficult to maintain a balanced approach. The 80/20 strategy can lead to vulnerabilities, particularly if issues arise with a major account. Over-reliance on a few key clients can threaten diversification, which is essential for long-term stability in distribution.
In today’s environment, scale is crucial. Distributors must navigate the delicate balance between efficiency and diversification. Leaning too heavily on the 80/20 principle can streamline operations but can also make a business susceptible to significant risks if a large account is lost or if market conditions change unfavourably.
To mitigate these risks, distributors need to maintain a diversified client base. While prioritizing top clients is essential for profitability and operational efficiency, nurturing relationships with smaller, entrylevel shops can provide a buffer against market volatility. This dual approach can ensure a steady flow of business while safeguarding against the potential pitfalls of over-reliance on a few major accounts.
Collaboration is key. By working closely with suppliers and clients alike, distributors can foster an environment of mutual growth and continuous improvement. Open communication channels allow for the identification of areas for improvement, the implementation of best practices, and the development of innovative solutions to common challenges.
In conclusion, I believe in the need at both the shop and the jobber level to harvest collaboration and continuous improvement efforts together creating a system of both loyalty
Brake Rotors and Drums
Brake Pads and Shoes
Brake Calipers
Hub Bearings
CV Axles
Chassis Parts
Complete Strut Assembly
Shock Absorbers
Strut mounts
Radiators
Water Pumps
Steering Pumps and Racks and Pinions
Steering Gears
Starters and Alternators
Batteries
Oil Pans
Fuel Pumps
Wiper Blades
Ignition Parts and Coils
Fuel lines
Exhaust Parts, Universal Converter, and Flex Pipes
Misc Automotive Parts
Zakari Krieger is the Fix Network, Canadian vice president of Prime CarCare, responsible for the Canadian retail business, encompassing the Speedy Auto Service and Novus Auto Glass business lines
PLANNING FOR THE UNEXPECTED SLOWDOWN
By Erin Vaughan
If there’s one thing shop owners used to be able to count on to keep them busy, it was the weather. When we see extremes on either end of the thermometer, it typically can signal a busy time. Winter is coming: Are you ready for whatever weather it throws at you?
If you think that this conversation is premature, ask yourself if you were prepared for the extremely unusual warm winter we had last year. I know I wasn’t nearly as prepared as I will be this year. There are many tools available for us to use that are designed to prevent the uncontrollable downturns or upturns that can happen in
business. The most important tool is planning. You must know how much revenue and gross profit you need to be able to pay your bills, pay your staff, pay yourself and make a profit.
Once you know these numbers, you need to find a strategy to achieve them. How are you going to fill the bays — consistently — with profitable work instead of waiting for breakdowns?
That’s a stressful way to operate. For shop owners last year, expecting cold weather revenue on blown power steering hoses, dead batteries and coolant leaks never came was surely worrying.
Breakdowns are stressful for everyone:
FILTRATION YOU CAN TRUST.
Our clients are not prepared to be without their vehicle or spend money that wasn’t in their budget
Our service advisors must deal with the emotions of these client’s unexpected breakdowns
Our technicians feel the pressure to get the repairs done quickly so they can move onto the next breakdown
Utilizing our marketing tools effectively and choosing consistent messaging will drive clients into our shops in a more manageable way. Early last year, we started discussing the benefits of preventative maintenance in our TV commercials, email blasts and during conversations with our clients.
When new clients booked an appointment, we sent them a list of maintenance “Reminder Items” and asked them to check their records to see if they were due for any of these services.
On the day of the appointment, we performed a DVI and marked maintenance items as “Check Vehicle History” so the client was reminded to look into this.
Once their appointment was over, we would book the next appointment and include one or two of the reminder items that the client had determined they were due for, ensuring that we were discussing the importance of staying on top of these important services.
By the end of the year, we were booking all of these appointments for February, hoping to fill up a notoriously slow month with pre-booked work. Did all of these appointments show up? Nope. But we had more clients show up than if we hadn’t been following this process.
As well, instead of relying on weather-related breakdowns for
revenue, we were billing more hours performing preventative maintenance services, due to the fact that our messaging was bringing in more maintenance-minded clients. February’s sales still sucked but it would have been unbearable if we hadn't implemented the systems and processes required to create this flow of revenue.
One of our greatest tools are our teams. In the CARS February edition, I wrote about our “Kinetic Coffee Talk Tuesday” meetings, where my team sits down to discuss the previous week’s performance and the goals for the coming week. By sharing with them the business's financial challenges, achievements and future goals, each team member is able to make educated suggestions about what improvements could be made that are not obvious to myself or my manager.
If our team’s goal is to have consistent revenue from week to week, with a healthy profit margin that will afford us the ability to pay great wages and stay up to date with tooling, we will work as a team to prevent weather from getting in our way.
For your shop to fight off unseasonably warm weather, economic uncertainty or a labour shortage, the best tools you can utilize are systems and processes that will prevent you from having to react to these situations, and instead be ready to face them head on.
500,000 vehicle parts and products in inventory, all ready for delivery: that’s over 500,000 good reasons to make us your number one partner. napacanada.com
Erin Vaughan is the owner of Kinetic Auto Service in Regina.
On the Road
Lordco Auto Parts 34th Annual Trade Show
April 3-4, 2024
Vancouver, B.C.
Under the theme of “Honouring Our History. Celebrating our Future,” Lordco Auto Parts marked 50 years in business during its 34th annual trade show at the PNE grounds in Vancouver. With more than 15,000 attendees registered, the halls of the PNE Coliseum and Agridome were packed with Lordco customers. In addition to checking out the latest offerings in tools, equipment, parts and components, attendees were also able to take advantage of special deals from more than 400 vendors that were available only while at the show.
See the event reel on Instagram
KNOCK SENSORS
Continental has added eight new part numbers to its OEM Knock Sensors line. The additions provide application coverage for some of the most popular domestic, European and Asian makes and models on the road today. The expanded line covers Chrysler, Dodge, Ford, Infiniti, Jeep, Lincoln, Mercedes-Benz, Mercury, Nissan and Ram models ranging from 2000 to 2023. The new sensors provide coverage for 28,814,500 vehicles in operation (VIO) in the United States and 2,438,395 vehicles in Canada. www.continentalaftermarket.com
RUST REMOVER
CRC Industries has introduced a new onequart canister size for its Evapo-Rust brand of rust remover. It will hit shelves in February 2024. A dip basket has been integrated into the canister, so users don’t have to pour the product out into a separate container – they can remove rust right in the canister. The one-quart size is ideal for small tools, nuts and bolts, garden tools, and other jobs around the garage and home. www.crcindustries.com
DIESEL AFTERTREATMENT INJECTORS
Continental has introduced a new Diesel Aftertreatment Injector part number. The injector provides application coverage for Ram truck models 2500, 3500, 4500 and 5500 from model years 20132023. It’s the first part of its kind that Continental has offered to the aftermarket. Continental’s Diesel Aftertreatment Injector provides application coverage for 78,033 vehicles-in-operation (VIO) in Canada and 997,714 VIO in the United States. www.continentalaftermarket.com
AIR DIFFUSER
The Philips OlfaPure 7300 is a new an appcontrolled, car aroma diffuser that allows drivers and passengers to relax, stay alert, reduce motion sickness or simply refresh the air inside their vehicle. The diffuser holds up to four different scent cartridges at a time, allowing users to customize their preferred aroma to improve their driving experience and mood. Users can choose from an array of 10 different fragrances including three ‘functional’ scents and seven ‘mood’ scents. It is designed to fit in most console cup holders and is USB powered and Bluetooth connected.
www.lumileds.com
OFF-ROAD LIGHTING
GDI CLEANING UPGRADE
CRC Industries introduced an improved version of the CRC GDI Service Pack with a newly reformulated version of the CRC GDI IVD Intake Valve and Turbo Cleaner. The CRC GDI Service Pack includes the CRC GDI IVD Intake Valve and Turbo Cleaner, CRC Mass Air Flow Sensor Cleaner, CRC Throttle Body and Air-Intake Cleaner and CRC 1 Tank Power Renew. All products in the service pack are also available individually. Combined, the products help clean and optimize the performance of MAF sensors, throttle bodies, intake valves, fuel injectors, spark plugs and combustion chambers.
www.crcindustries.com
Continental announced the NightViu premium lighting line of professional driving and working lights will be made available to consumer markets including off-road enthusiasts, recreational vehicles (RV), and marine. These were originally designed for use on construction, mining and off-highway equipment. They are built to withstand extreme temperatures, vibration, dust, and moisture. The lights feature advanced LED technology that provides excellent lighting performance and exceptional energy efficiency. NightViu Driving Lights provide a focused beam of light for long-distance illumination.
www.continentalaftermarket.com
LED WORK LIGHTS
A new line of Philips Xperion 3000 LED work lights is available. The Xperion 3000 Pen eco is powered by three AAA batteries. The “Pillar” is a hand-held work light. The Xperion 3000 “Slim” is a handheld light. The Xperion 3000 “Zoom” resembles a flashlight but features a tilting light. The Xperion 3000 “Line” is an inspection light. The Xperion 3000 “Pocket” is a palm-sized lamp with two output modes. The Xperion 3000 “Headlamp” is a wearable headband work light with two light sources and three output modes. The Xperion 3000 “Flood” is a projector work light with three output modes. It can also be used as a power bank to run other devices. The Xperion 3000 “Penlight” is handy spotlight for tight spaces. www.lumileds.com
24_003875_Cars_JUN_CN Mod: May 13, 2024 10:07 AM Print: 05/24/24 page 1 v2.5
BAYWATCH
TRIPLE FANS
Continental has a new line of triple fans consisting of six part numbers arriving in 2024. The announcement provides application coverage for the Cadillac Escalade, Chevrolet Silverado, and GMC Denali, Sierra and Yukon. With the six part numbers that will be released, Continental Triple Fans will provide application for several million vehicles in operationa.
INVENTORY ASSESSMENT
TOOL
Dayco is rolling out its inventory assessment tool across the U.S. and Canada called AutoPartIQ to help customers analyze their existing Dayco-specific inventory to identify possible gaps in coverage, new opportunities or unproductive inventory that could be shifted to another location. The tool provides coverage reviews for 35 CMAs in Canada. The tool is capable of analyzing Dayco’s entire light vehicle product portfolio and all light vehicle and industrial product lines in Canada (16,000 part numbers). It’s a new value-add resource for Dayco retailers, distributors or jobbers that can provide national, regional or hyper-targeted data reports.
www.continentalaftermarket.com
www.dayco.com
PRODUCT LINE EXPANSION
Dayco is introducing 140 part numbers in the coming months and making a strategic effort to have specific top-selling parts guaranteed in stock. The ‘Top Movers’ project will ensure that Dayco’s top high volume part numbers are always in stock for distributors. The operations team is enhancing our warehouse management system by creating a new safety stock policy as well as consolidating different orders to the same shipment, reducing complexity, costs and order cycle times. The 140 new part numbers will launch in Q1 2024 www.dayco.com
www.aftermarket.schaeffler.us
