Service Station & Garage Management December 2012 by Annex Business Media

SSGM Service Station and Garage Management READ BY AUTOMOTIVE REPAIR SHOP OWNERS AND TECHNICIANS SINCE 1955

DECEMBER 2012

Garage of the Year Managing Employees TalkAUTO www.ssgm.com

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SSGM what’s inside December 2012

Vol. 42 No. 10

Service Station and Garage Management

EDITOR Tom Venetis (416) 510-6790 tom@ssgm.com TECHNICAL EDITOR Jim Anderton jim@ssgm.com

CONTRIBUTING WRITERS Andrew Brooks, Nestor Gula, Noelle Stapinsky PUBLISHER Marc Gadbois (416) 510-6776 marc@ssgm.com SALES MANAGER Jay Armstrong (416) 510-6745 ACCOUNT MANAGER Jim Petsis (416) 510-6842 CIRCULATION MANAGER Selina Rahaman (416) 442-5600 ext 3528 srahaman@bizinfogroup.ca SUBSCRIPTION ENQUIRIES Roshni Thava (416) 442-5600 ext 3555 ART DIRECTOR Ron Taylor

See Page 14

PRODUCTION MANAGER Steve Hofmann (416) 510-6757

See Page 36

PRINT PRODUCTION MANAGER Phyllis Wright

Garage of the Year Colalillo Automotive Services Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

VICE PRESIDENT CANADIAN PUBLISHING Alex Papanou PRESIDENT BUSINESS INFORMATION GROUP Bruce Creighton

TalkAUTO Canada 2012 TalkAUTO Canada looks into the crystal ball of the Canadian auto market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

TACT Team Management How do you differentiate your service operation in today’s competitive market?. . . . . . . . . 26

Managing Employees It is not as hard as you may think it is. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Shop Profile Gustafson’s Auto Clinic Inc. takes top AAIA award. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Departments Editorial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Baywatch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Liqui Moly Advertorial. . . . . . . . . . . . . . . . . . . . . . . 34 Internet Directory. . . . . . . . . . . . . . . . . . . . . . . . . . 38 Advertiser Index. . . . . . . . . . . . . . . . . . . . . . . . . . . 38

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“We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.”

In association with CANADIAN

AUTOMOTIVE Technician

AWARD-WINNING MAGAZINE HEAD OFFICE Business Information Group 80 Valleybrook Drive Toronto, ON M3B 2S9 Contact us via one of the following methods: Telephone: 416-442-5600 Facsimile: 416-510-5169 Website: www.ssgm.com Service Station and Garage Management is published by BIG Magazines LP, a div. of Glacier BIG Holdings Company Ltd., a leading Canadian information company with interests in daily and community newspapers and business-to-business information services. Subscription rates: Canada $51.95 + HST + applicable taxes per year; $82.95 + HST + applicable taxes for 2 years; single copy price $7.00 + $0.42 HST + applicable taxes. USA $91.95US per year; single copy price $10.00US. All other foreign in US $93.95 per year. All rights reserved. Printed in Canada. US office of publication: 2424 Niagara Falls Blvd, Niagara Falls, NY 14304-5709. Periodicals Postage Paid at Niagara Falls, NY. USPS #009-192. US postmaster: Send address changes to Service Station and Garage Management, PO Box 1118, Niagara Falls, NY 14304. Return undeliverable Canadian addresses to: Circulation Dept., Service Station and Garage Management, 80 Valleybrook Drive, Toronto, ON M3B 2S9. Postmaster: please forward forms 29B and 67B to 80 Valleybrook Drive, Toronto, ON M3B 2S9. Printed in Canada. All rights reserved. The contents of this publication may not be reproduced either in part or in full without the consent of the copyright owner. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us. Member of the Audit Bureau of Circulations Publications Mail Agreement #40069240 Print edition ISSN 0381-548X On-line edition ISSN 1923-3396 Member of

Inc.

Association of Business Publishers 205 East 42nd Street New York, NY 10017

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|| Tom’s Editorial

Rethinking, Reaching Gen Y I

By Tom Venetis, Editor

We are dealing with a market segment that spends reluctantly and will look askance at any business that uses traditional means of trying to reach them to solicit for business. Simply, we have to completely rethink how we are going to talk and sell ourselves to Generation Y.

f there is one thing that is making this industry nervous it is what to do about Generation Y. Often called Millennials, this generation is different from the recent Generation X and the earlier Baby Boomers. Where Baby Boomers worshiped the automobile, having devoured Kerouac and the Beats, and Generation X looked at the car as a means of getting from one dead-end job to the next while listening to Nirvana, Generation Y is pretty much turning its back on the automobile. Studies from various research firms paint a portrait of a generation mired in high student debt, few job prospects and little upward mobility. Consider them the train wreck of a shattered economy and a grim future. Because of this, members of Generation Y are reluctant to purchase a vehicle and others say they have pretty much given up on vehicle ownership. It is an expense that many wish to avoid, if they can; and if some do purchase a vehicle, it is often a used, older vehicle. Added to this mix is a profound change in how Generation Y interacts and communicates. The Pew Research Center in Washington, D.C. found 95 per cent of 17- to 19-year-olds were online and the majority of those used social media as their primary means of communications. Carleton University Professor Eileen Saunders was quoted in The Huffington Post as saying most of her students feel more comfortable communicating with peers through text messaging or social media than calling them or even meeting them in-person. These trends mean a profound change in how our industry will need to operate in the future. We are dealing with a market segment that spends reluctantly and will look askance at any business that uses traditional means of trying to reach them to solicit for business. Simply, we have to completely rethink how we are going to talk to and sell ourselves to Generation Y. All of that stuff you have been taught about in customer communications classes and management is going to have to be radically altered. Traditional advertising in newspapers or on the radio is wasted on a generation that is growing up downloading television, movies and other media, who communicate in 140-character bursts and have ‘friends’ that they meet infrequently or will never meet face-to-face their entire lives. And when we do manage to get them into our shops with their cars, they are likely already checking or have checked prices on parts and service from the competition. This can be frustrating for many shops who now have to deal with ‘know-it-alls,’ but that is the reality that is going to have to be confronted. This generation values the opinions and recommendations of online friends, online ratings postings and reviews, and their own research for who they are going to do business with. They expect a high degree of quality for the dollars they are going to have to spend. At the recent AAPEX show in Las Vegas, analysts agreed Generation Y will spend money on keeping vehicles longer and operating properly, and will invest in quality aftermarket service and parts; but only if we know how to communicate with them.

What do you think? Have your say and speak your mind! letterstotheeditor@ssgm.com 6 SSGM December 2012

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|| News Briefs Honda Achieves Production Milestone in Canada Honda builds its six-millionth vehicle at Alliston plant Honda is celebrating the hard work and dedication of generations of associates, as the company announced it has built its six-millionth vehicle in Canada. This impressive feat took place during the company’s 26th year of Canadian vehicle production in Alliston, Ontario, home to Honda of Canada Mfg. Honda became the first Japanese automaker to manufacture cars in Canada in 1986 when the company opened the doors of its Alliston, Ontario plant. Since then, Honda of Canada Mfg. has manufactured several models including Honda Accord, Pilot and Ridgeline, as well as Acura EL and CSX vehicles. The plant currently builds CR-V, Canada’s top selling import SUV, as well as the Acura MDX and ZDX models. Alliston also produces the Honda Civic, Canada’s best selling passenger car for 14 consecutive years. “Nearly 1.7 million Honda Civics have been proudly parked in driveways all over this country,” said Dave Gardner, vice-president, Sales & Marketing, Honda Canada Inc. “Our plant capacity was 50,000 vehicles when we started and we’re now building 390,000 vehicles per year. This growth is the result of hard work and dedication of all the

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associates who have worked with us over the years to produce the quality and reliability that Honda customers truly value.” To mark the six millionth Honda vehicle built in Canada, Honda Canada donated an all-new Honda Civic Sedan to Stevenson Memorial Hospital in Alliston. The car will be used as the centrepiece of a fundraising initiative to support the hospital’s much-needed operating room renovation. “Stevenson Memorial Hospital is a very important part of the Alliston community and our milestone was made possible through the hard work of so many who live and work in this community,” said Gardner. “On behalf of Honda Canada, I’d like to congratulate the efforts of Honda associates and hope this donation helps to kick off a new era of care in this community.” “This donation will play an important role in achieving our fundraising goals for Stevenson Memorial Hospital,” said Glenn Rae, chair, Stevenson Memorial Hospital Foundation. “We’re proud to have Honda in our community and honoured to be recipients of a vehicle that was built by the very people that our hospital serves.”

MAHLE Announces Agreement to Acquire RTI Technologies

MAHLE has announced that it has entered into a definitive agreement with Robert Bosch GmbH to acquire all assets and the related business of RTI Technologies Inc. RTI Technologies specializes in the development and distribution of automotive maintenance equipment including air conditioning service, fluid exchange, and nitrogen tire inflation systems. RTI Technologies, based in York, Pennsylvania, had sales of USD 14.7 million in 2011 and has 60 employees. The transaction is subject to certain customary closing conditions and is expected to close on January 1, 2013. “RTI Technologies presents a tremendous opportunity for MAHLE to expand our business into the repair shop equipment sector of the automotive aftermarket,” said Dan Moody, general manager of MAHLE’s aftermarket business for North America. “Given the long-term approach to the aftermarket as an important sales channel for MAHLE globally, this acquisition will broaden our aftermarket offerings within our strategic product and service range and make us one of the leaders in this segment in North America.” “This acquisition will also further leverage our global position as a filter manufacturer — particularly as it relates to MAHLE Original cabin air filters for light vehicle and truck air conditioning systems,” Moody went on to say. Established in 1990, RTI Technologies develops, assembles and sells various types of automotive maintenance equipment including air conditioning service units in North America. Among RTI’s strengths is the organization’s ability to provide leading solutions for all available refrigerants used in mobile air conditioning systems. RTI Technologies currently supplies shop equipment to major original equipment manufacturers around the world. It also sells equipment under the RTI brand in the independent aftermarket. RTI Technologies as a future part of MAHLE will focus on continucontinued on page 10 www.ssgm.com

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|| News Briefs continued from page 8 ous sales growth and customer service in North America as well as potential business expansion in other regions.

AIA Celebrates 70 Years

This past weekend, the Automotive Industries Association (AIA) of Canada pulled out all the stops to celebrate its 70th anniversary with past and present staff and members from across Canada. In 1942, AIA (then the Canadian Automotive Wholesalers Association) held its first annual general meeting with 42 wholesalers keen on establishing one voice for the industry. Over the years, the Association’s name and membership has changed to encompass the entire automotive aftermarket from coast-to-coast; however, its mission has remained the same — to represent its membership with clear direction and one strong voice. To celebrate AIA’s many accomplishments, approximately 500 individuals attended a gala soirée at the Westin Harbour Castle Hotel in Toronto. The evening kicked off with a cocktail reception where attendees had the opportunity to have their pictures taken on the red carpet. Members were then piped into the formal ballroom where they enjoyed sumptuous food and great entertainment. The evening also included salutes to past presidents and chairmen, some of whom were present, and to recipients of the Diamond Jubilee Medal. Following the dinner, attendees shared some laughs while watching André-Philippe Gagnon impersonate famous musicians from the 1950s to the present day. Guests then danced the night away to the wonderful sounds of the George St. Kitts Band. John MacDonald, chairman of the board, remarked that “it was an honour to be involved in such a wonderful event and to highlight the accomplishments of my colleagues and the AIA staff. I couldn’t have hoped for a better evening and am so happy that I was able to share this celebration with my friends, family and colleagues. Friday was certainly a night that no one will forget.” 10 SSGM December 2012

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To continue the celebrations, AIA hosted a Grey Cup tailgate party on Sunday at the Real Sports Bar & Grill located in Maple Leaf Square. More than 100 members came to network, host clients, and have some fun. The event also managed to raise $400 for AIA’s charity, High Fives for Kids. Following the party, some members attended the Grey Cup game where the Toronto Argonauts triumphed over the Calgary Stampeders to win the 100th Grey Cup and take their place in Canadian history.

sizes from a 14" to 19" wheel diameter, including the five most popular tire sizes and nine of the top ten. Hankook Tire Canada is offering a 130,000 km limited treadwear mileage warranty on this product in Canada. The newly launched and redesigned Hankook Optimo H725 will be available through major distributors and retailers across Canada beginning in January of 2013.

Hankook Tire Canada Launches Optimo H725 All-Season Tire

Hyundai AutoCanada Corp. and Kia Canada Inc. announced that they are correcting the fuel consumption ratings for approximately 172,000 vehicles sold between 2010 and 2012. Procedural errors at the automakers’ joint testing operations in Korea led to incorrect fuel consumption ratings for select vehicle lines. As a result of the corrections, Hyundai/Kia average combined fleet fuel consumption ratings are increased for the 2013 model year by 0.3 litres per 100 kilometres. “I sincerely apologize to all affected Hyundai and Kia customers, and I regret these errors occurred,” said Dr. W. C. Yang, chief technology officer of Hyundai/Kia research and development. “Following up on the EPA’s (Environmental Protection Agency) audit results, we have taken immediate action to make the necessary rating changes and process corrections.” The U.S. EPA certification is accepted by Environment Canada for auto imports into Canada. Both companies are putting in place a comprehensive reimbursement program for affected current and former vehicle owners to cover the additional fuel costs associated with the fuel consumption rating change. Customers will receive a personalized, pre-paid credit card that will reimburse them for their difference in the combined fuel consumption rating, based on the average fuel price in their region and their own actual kilometres driven. In addition, as an acknowledgement of the inconvenience this may cause, Hyundai and Kia will add an extra 15 per cent continued on page 12

Hankook Tire Canada Corp. introduced a new all-season passenger vehicle tire — the Hankook Optimo H725. This tire offers consumers better handling, noise and braking performance while delivering significant mileage. The Optimo H725 is a redesign of the Mileage Plus II, an all-season tire previously sold in Canada. The new tire features similar tread design as its predecessor, but an upgrade in the tire compound and structure has been made to satisfy the performance needs of today’s vehicles. A speed-symbol upgrade from S to T, H or V and increase in tire mileage are two of the additional features in the redesigned tire, allowing drivers of the Standard Touring All-Season tire to experience long and regular wear. Streamlined symmetric patterns on the tread deliver several benefits over the conventional all-season tire, including: • Enhanced wet and dry braking performance • Superior handling • Improved snow and ice traction “Hankook believes in delivering tires that customers want and need, and our new all-season tire does just that,” said Bill Hume, vice-president of Hankook Tire Canada. “For drivers seeking value with improved performance, Optimo H725 is the perfect fit. This tire has an impressive set of features, is designed to meet Canadians needs better than its predecessor, and continues the Hankook model of delivering quality at a great price.” The Optimo H725 is offered in 28

Hyundai, Kia Initiate Program to Adjust Fuel Consumption Ratings on Select Vehicles

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|| News Briefs continued from page 10 to the reimbursement amount. Current owners will be able to refill their prepaid credit card at any time for as long as they own the vehicle. Prior owners of affected vehicles who have already sold their cars will also be reimbursed using the same formula. For more information about reimbursement and a complete list of eligible vehicles, customers can visit www. hyundaifuelconsumption.ca and www. kiafuelconsumption.ca.

AIA Welcomes Back Michel Tremblay

AIA Canada president Marc Brazeau announced that Michel Tremblay will be joining the Association as acting director of Industry Relations effective immediately. “Michel has a long and successful track record in helping national industry associations deliver high quality programs and services,” stated Marc Brazeau. “But more importantly Michel is very familiar with AIA’s membership and will be able to have an immediate impact on the delivery of our business plan with special emphasis on communications, government relations and membership services,” concluded Brazeau. In this position, Michel will oversee all strategic relationships with AIA’s key stakeholders. More specifically, he will supervise the development of a comprehensive communications strategy, government relations plans, sponsorship programs, and membership recruitment and retention strategies. Michel Tremblay has devoted some 45 years to his career as an association executive. In 1991, Michel and his wife Céline Brisebois launched their association management company, which specialized in the provision of services to national trade or business associations committed to serving their Francophone members in Canada. Under their ownership and direction, Gestion Brisebois Tremblay acted as the Quebec headquarters for various national organizations for 20 years. These organizations represented diverse fields including the automotive 12 SSGM December 2012

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aftermarket (AIA Canada), plumbing and heating (CIPH), electrical distribution (CEDA), urban transit (CUTA), and office products (COPA). Of particular note, Gestion Brisebois Tremblay acted as the national office of the Canadian Particleboard Association, which later merged with its American counterpart to form the Composite Panel Association. Michel acted as the Canadian vice-president of government and industry affairs for this new organization. Since 2011, Michel has performed various mandates in the not for profit sector.

DuPont Fluorochemicals Affirms Confidence that HFO-1234yf Can Be Safely Used as an Automotive Refrigerant

Following a meeting with Daimler on its recently announced tests related to the safety of HFO-1234yf, DuPont Fluorochemicals (DuPont) affirms its continued confidence that this product can be used safely as an automotive refrigerant. “We met with Daimler to understand their testing approach and results, and based on these discussions, DuPont has concluded the testing does not represent new information,” said Diane Iuliano Picho, global business manager, Opteon refrigerants. “It is well known that HFO-1234yf is a mildly flammable refrigerant,” added Picho. “Extensive flammability testing was completed by independent globally recognized third-party laboratories. Multiple risk assessments by industry stakeholders, including Daimler, have thoroughly evaluated the product’s flammability, and have shown that there is no significant additional risk for HFO-1234yf versus the current refrigerant.” Two globally recognized industry standards organizations, the International Standards Organization (ISO) and the SAE Interior Climate Control Committee (SAE ICCC), also have developed safety and use guidelines for employing refrigerants with low global warming potential, such as HFO-1234yf. These provide guid-

ance to vehicle manufacturers for safe design of automotive air-conditioning systems. The SAE CRP 1234 Industry Summary, issued Nov. 10, 2009, summarized a comprehensive refrigerant flammability evaluation conducted by 15 automotive companies including Daimler, as well as third-party laboratories with flammability testing expertise. The project summary stated that “flammability testing at Hughes Associates, Ineris, and Exponent labs have demonstrated the difficulty in igniting the HFO-1234yf refrigerant under the most severe testing conditions.” An SAE International presentation on this research program stated that “risk assessments have concluded there is an extremely low probability of ignition of refrigerant associated with HFO1234yf during an accidental release.” The sponsors of the SAE International program concluded that “HFO1234yf can be safely accommodated through established industry standards and practices for vehicle design, engineering, manufacturing, and service.” A recent presentation at the European Automotive Air-Conditioning Convention, co-authored by Daimler and presented by the German automakers association (VDA) on Sept. 17, 2012, in Frankfurt, Germany, concluded that “R1234yf equipped vehicles are as safe as those using R134a – for occupants, mechanics, first emergency responders and fire fighters.” DuPont co-developed HFO-1234yf in response to Europe’s Mobile Air Conditioning (MAC) Directive, which requires an automotive refrigerant with a global warming potential (GWP) under 150. HFO-1234yf refrigerant has a GWP of 4, which is 99.7 per cent lower than the refrigerant used in most cars today. In addition, HFO-1234yf enables energy efficiency and has an optimal balance of safety, performance, sustainability and cost. For more details on the SAE International research program, please visit http://www.sae.org/servlets/ pressRoom?OBJECT_TYPE=PressRe leases&PAGE=showRelease&RELEA SE_ID=1109. SSGM www.ssgm.com

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|| Garage of the Year

Colalillo Automotive Services Ltd. A love for the industry fuels the desire for excellence

t is rare when someone says they love their job, as it is a sentiment rarely expressed with true conviction. Jim Colalillo, owner of the Mississauga, Ontario-based Colalillo Automotive Services Ltd., is an exception. He truly and with the deepest conviction loves his job. He can’t imagine doing anything else. “This was my dream from day one,” Colalillo says in the office of his service operation, a 10-bay facility sitting on one of the busiest thoroughfares in Canada’s sixth-most populous municipality, only a stone’s-throw from Mississauga City Hall and one of Canada’s largest shopping malls, Square One. “If you have a goal in life, you have everything covered. If you have a goal in life and you have a direction, you are half-way there.” Colalillo says he always wanted to be a mechanic and operate his own service operation from his high school days when he first caught the mechanic’s bug and began to tinker with cars. After graduating from high school, he enrolled in Centennial College’s automotive program and then began apprenticing with an Esso service operation in Brampton, Ontario at a time when major oil companies not only sold gasoline but ran automotive repair facilities as well. Colalillo admits even before taking his first apprentice position, he was already making plans to run his own facility. After eight years as an apprentice and nursing his ambitions, Colalillo got his chance when Texaco offered him the opportunity to operate a service operation and gas bar at Kennedy Road and Highway 7. Colalillo says he took many of the lessons on how to run a successful shop he absorbed while an apprentice and applied it to his new venture. He emphasizes quality mechanical work, 14 SSGM December 2012

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Tom Venetis, Editor

this facility on Burnhamthorpe Road and Tomken Road that Colalillo says an opportunity presented itself that would allow him to realize another dream, of building a service operation that would challenge person’s notions of what an independent service operation could be.

‘Where is the Garage?’ training and keeping the operations clean and inviting. “In the first two years I was at the location, the head office loved what I was doing,” he says. “I kept the operations clean, organized and busy. It is the same lesson and work ethic I still use. When people come into my shop, they see my place is spotless and professional, and staffed by professionals who know what they are doing.” Over the next 15 years, Colalillo operated another Texaco service operation, making it one of the most successful in the area. It was while operating

It was while road testing a vehicle after a routine brake job that Colalillo made a fortuitous turn onto Burnhamthorpe Road from Mavis Road. A ‘For Sale’ sign sat in an empty field. At the time, Colalillo says the area was very different from what it is today. Where today there are luxury condominiums, office towers and retail operations, back when Colalillo was doing his road test there was vast empty fields with a lone Esso gasoline bar. So he was surprised to see such a sign. He phoned his real estate agent to see who owned the property and to see if he could make an offer. “At first, my real estate agent could

From left: Melissa Colalillo, Jim Colalillo, Fatlum Zeli, Claudia Sarmiento, Nick Ewart, Mario D’Angelo and Susan Newman. www.ssgm.com

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|| Garage of the Year not find the sign, but he made some inquiries and he managed to find the owner of the property who, at first, was reluctant to sell it — but we made an offer. We went back and forth on this until we came to a mutually agreedupon price,” he says. “Then I got to work designing the operation I always wanted to have.” What Colalillo and his architect envisioned was a service operation that goes against every stereotype of what people think an independent service operation is. It would be decisive in winning over a Mississauga City Council that was not enthusiastic about having a ‘garage’ on what was envisioned by the members as one of the city’s future main retail and residential thoroughfares. “All the ‘red flags’ went up in the council, and the council did give us a hard time because all they saw was ‘garage,’” Colalillo says. “What they imagined was some greasy, dirty place. The whole council put me through the wringer for two hours. Imagine sixteen members of council sitting around a table with Mayor Hazel McCallion at the head grilling you. It was only at the end when my architect unveiled the plans and drawings that the room went quiet. Finally, one fellow said, “Where’s the garage?’ After that, they wanted to know how the operation was going to work and once we explained to them how everything worked, they became very supportive.”

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Driving down the very-busy Burnhamthorpe Road one will likely think Colalillo Automotive Services Ltd. is a two-story retail and office property, its modernist design, cladded exterior and well-maintained landscaping fitting perfectly with the surrounding office towers and condominiums. It is only the operation’s sign and CAA approved service operation windowdisplay and the signage announcing the operation’s vehicle rental operation that tells someone this is an independent service operation (the second floor holds three professional offices that Colalillo leases). When customers enter they are greeted by a smart, clean waiting area and carefully arranged displays of tires, rims, lubricants and motor oils. Behind the service counter sits Susan Newman, who Colalillo says is his right hand, having worked with him now 21 years.

“She knows everything,” he adds. “She has everything under control. If someone comes in asking for tires, she can tell them what kind of tires they need. If they explain to her what is wrong with their car, she can tell them what the problem is. I can’t imagine this place without her.” Working alongside Susan is Claudia Sarmiento, who Colalillo has high praise for as well. In the four years she has been with his service operation, she and Susan work as a well-oiled machine, keeping the shop’s workflow moving smoothly and customers feeling comfortable with bringing their vehicles into the operation. You will often find her behind the desk of the Express Car Rental operation that Colalillo operates as well. The atmosphere is one of friendly professionalism. He is also proud of his daughwww.ssgm.com

12-12-10 8:16 AM

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10/4/11 1:40 PM 12-12-07 7:54 AM

|| Garage of the Year ter Melissa Colalillo who successfully operates the second Express Car Rental operation located in Toronto at Bridgeland Ave.

‘Zero Comebacks’

From the customer waiting area, one has an unobstructed view of the 10 bays. The works areas are kept spotless and organized, and there is plenty of room for the technicians work and move about the vehicles. The high ceiling has numerous skylights and there are days during the summer that Colalillo says he never turns on the lights in the bays because of the sunlight the skylights allow into the bays. The four certified technicians and the apprentice have computers on the shop floor with access to Mitchell on Demand, ALLDATA and Identifix. “I want my staff to be able to find all the information they need easily and quickly, and to be able to order the parts they need right away,” Colalillo says. Because his technicians deal with a large volume of foreign nameplate vehicles, he sources parts from WORLDPAC, AutoCamping and OE suppliers as on those vehicles owners demand OE or as close to OE-quality from aftermarket parts. He keeps atthe-ready a wide range of vehicle fluids from Valvoline, QuakerState, Mobile 1, Lubro Moly and OE-specific fluids and coolants. Colalillo also carries a wide-range of tires and works closely with Kal Tire and OK Tire. Just as important for Colalillo is his membership in the UCDA (Used Car Dealers Association of Ontario) and the OMVIC (The Ontario Motor Vehicle Industry Council), organizations that protect vehicle owners and promote industry professionalism. If there is an animating philosophy behind Colalillo’s business success it is the demand that only the highest quality of service and work is acceptable. He says he strives in all cases for ‘Zero Comebacks.’ He does not want to have any customer believe they did not get the best service available from his technicians and front office staff. He puts a high premium on technician training and regularly invests in the newest equipment and scan tools. At the time 18 SSGM December 2012

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of his being awarded the ‘Garage of the Year’ by SSGM Magazine, Colalillo had purchased new Hunter alignment systems, tire balancers and changers, and had booked training for all of his technicians on the new equipment with the manufacturer. He is also not afraid to inspect the work of even his most senior technician to make sure things are done right, or take out a customer’s vehicle for a road test. This might seem a recipe for employee and management friction, but it works and his staff is appreciative of the close attention he gives to their work and ensuring they get the tools and training they need. He also pays his technician a salary, rather than a flat rate.

“There is no pressure for speed here,” he says. “What I want is the work to be done right. I don’t want a customer coming back. No one is pushing you to work fast. Instead, I just want the work to be done right and for everyone to strive for zero comebacks.” This attention to quality and service and having a service operation that challenges people’s preconceived notions of the traditional ‘garage’ has proven a successful formula for Colalillo and his staff. The proudest moment for Jim Colalillo was when his parents came to see his new facility and his father, normally a reticent man, turned to his son and said he had accomplished something wonderful and was proud of everything he had done and was going to continue doing. SSGM www.ssgm.com

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1/13/12 2:07 PM 12-12-07 9:58 AM

|| Talk Auto

Prepping

the plan J.D. Power’s new TalkAUTO conference aims to help auto sector plan for the coming year Andrew Brooks

he first annual TalkAUTO conference, presented by J.D. Power Canada and Canadian Black Book, took place November 14 at the Toronto Congress Centre. Some 200 attendees representing dealers, manufacturers, the trade media and ancillary sectors serving the automotive industry listened to a series of presentations from industry thought leaders on the state of Canada’s automotive sector and prospects for 2013. The key theme was risk management, says Ryan Robinson, director, automotive practice for J.D. Power Canada, who co-introduced the conference with Larry Shred of Canadian Black Book. “It’s a topical focus given the economic uncertainty and the conditions the Canadian automotive sector operates under,” he says. “I think it was a good opportunity to start discussions around planning for next year. People found the content informative and topical and we hope it will help them hit the ground running in January.” Topics in the morning sessions included a North American automotive sector outlook, dealer/manufacturer disputes, dealer issues (a panel session), new vehicle technologies, and a keynote from Jaguar Land Rover Canada. Afternoon breakouts covered auto lending, residual value, leveraging data to make better business decisions, and the importance of the customer experience. Dave Cutting, senior manager, North American forecasting for LMC Automotive, delivered the North American automotive sector outlook. The long20 SSGM December 2012

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TalkAuto || term prospects are good, Cutting said, as new household numbers grow and replacement demand drives volume. Overall economic growth, while slowing, is still positive, and light vehicle sales are outperforming expectations, up 13 per cent in the US and seven per cent in Canada. While his presentation was targeted at an audience whose main interest is in new vehicle sales, Cutting highlighted some trends that may have an impact on the business prospects for readers of SSGM. The average age of automobiles, at least in the US, is reaching a tipping point for replacement at seven years, a factor which will drive new vehicle sales but will also affect the number of older vehicles on the roads. “Owners can’t hold on to vehicles as long as they used to,” Cutting told the audience. “They increasingly see the need to replace their cars.” Cutting said that “product cadence” — the pace at which OEMs introduce

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new models — is a key market variable that directly drives consumer interest in new vehicles, and while the number of new products introduced this year — 293 — is high, it represents a decline for the fourth year in a row. Also, the perceived difference between brands has evened out, making for a more competitive marketplace. Ford and GM are still the top two brands, but over the past five years their lead has narrowed, while trailing brands have gained. Dave Sargent, J.D. Power’s vicepresident, global automotive, delivered a presentation titled “The Changing Nature of Quality.” Sargent began by noting that at a time when there are supposedly “no bad vehicles anymore,” the meaning of the term “quality” is changing. Drawing on a comprehensive range of metrics that J.D. Power uses to assess customer satisfaction, Sargent said that the complexity of vehicles now is an important element of what is

considered product quality. Initial quality of vehicles has improved dramatically since 1997 according to Sargent’s figures, with reported initial problems falling from the 1997 baseline of 100 to a mere 25 for this year. Moving beyond initial quality problems, overall reported problems since 1987 have fallen from the 1987 baseline of 100 to 36 today. What is considered to be a “problem” is also changing. As customers get used to higher quality they adjust their expectations upwards. So while the average number of problems is way down, at the same time consumers report that they’ve still had more than they expected. And as you might expect with today’s “wired” cars, the audio, entertainment and navigation systems are increasingly a focus for complaint. Sargent also pointed out that as onboard systems become increasingly complex, customers increasingly complain about “design problems” as

December 2012 SSGM 21

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|| Talk Auto opposed to defects. In other words, they can find themselves unsatisfied with vehicle features that have in fact been produced correctly to the manufacturer’s specifications, while they’re also finding fewer outright defects — cases where a system or component just doesn’t work as it’s supposed to. “Customers consider design problems to be just as bad as defects these days,” Sargent said. “Actually, if anything, they’re considered to be slightly worse than outright defects.” Design problems include poor ergonomics, the aesthetics of how a feature is positioned, problems with perceived quality, and excessive complexity. Design problems pose a clear difficulty for those who service automobiles, as they can’t be “fixed” the way an outright defect can. Also of interest was the “Dealer Issues” panel discussion, moderated by Chuck Seguin of SAS. Right off the bat, the discussion focused on the

Design problems include poor ergonomics, the aesthetics of how a feature is positioned, problems with perceived quality. growing importance of the service component as part of dealer operations. The consensus seemed to be that dealers in general have been slow to take the service side seriously, but that this is now about to change. “We got lazy about service because of all of the buzz in the showroom,” added Murray Clark of Oakville Volkswagen. “We thank the independents for waking us up to what a huge customer retention tool the service side can be.” Clark noted that with consumers keeping cars for a longer time, upping a dealer’s service game represents a great opportunity to increase and retain business. Being able to offer an improved service option will “really marry the customer to the dealership,” said Ron Loveys of WhiteOak Ford Lincoln.

“If we can sell products like rustproofing, sell and store winter tires for the owners, and offer things like prepaid maintenance, this represents a real area of opportunity for dealerships.” Mike Collins of DealerTrack noted the importance of service, and in response to a question about whether dealers might break out service operations into their own standalone locations, he responded that service hits close to home with customers. “There’s still a very local delivery requirement,” he said. “People want to be able to have their cars serviced where they acquire them.” J.D. Power is already thinking about next year’s event. “We’re meeting with our partners to go over how it went, see what we learned,” Robinson says. “There’s a lot of value in term of the topics and themes we’re covering. It’ll evolve and find its own path, but I think we got off on the right foot this year.” SSGM

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12-12-07 7:59 AM

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5/9/12 2:12 PM 12-12-07 7:59 AM

SSGM BAYWATCH New Products

True UV LED Leak Detection Flashlight

Tracer Products has unveiled the Tracerline OPTIMAX 400, an economical, cordless, true UV LED leak detection flashlight. It emits less visible light so leaks are clearer and easier to spot, saving valuable inspection time for technicians. The OPTIMAX 400 features a high-output UV LED that causes dyes to fluoresce more brilliantly and with greater contrast than with conventional inspection lamps. The flashlight’s pre-focused beam optimizes fluorescent response without any adjustments. It works with all Fluoro-Lite universal/ester and PAG A/C dyes, as well as Dye-Lite TP-3400 and TP-3900 series fluid dyes. The OPTIMAX 400 is compact and lightweight, which allows it to get into tight, cramped areas that larger lamps can’t. Its inspection range is up to 10 feet (3m) or more. A rugged, corrosionresistant, anodized aluminum lamp body stands up to years of heavy shop use. Powered by standard AAA batteries (included), the unit has a 30,000-hour LED service life. Tracer Products www.tracerline.com

Fix Heater Core Leaks with Rislone Liquid Aluminum Rislone Liquid Aluminum Radiator & Heater Core Stop Leak chemically repairs many heater core leaks, without the time-consuming and costly process of removing the vehicle dash. Rislone Liquid Aluminum (p/n 31186) is specially formulated to fix heater core leaks, as well as other cooling system leaks, including those in plastic, aluminum and metal (copper/ steel) radiators, gaskets and freeze plugs. Liquid Aluminum contains the proprietary wetting agent Xtreme Cool, which stops overheating, improves heat transfer, and reduces coolant temperature to protect against future leaks. Rislone Liquid Aluminum is effective in cars, trucks, vans, SUVs and RVs. It is compatible with all types of coolant, including yellow, orange, pink, red, blue and green silicate-based and non-silicate based (OAT/HOAT) antifreeze and/or water. It will not harm the cooling system when properly installed, nor will it clog the heater core. Rislone www.rislone.ca 24 SSGM December 2012

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Michelin Tire Safety and Maintenance Tool The Michelin High Pressure Programmable Inflator (model #3145) from Remington Industries features a digital air pressure gauge with auto shut-off. Powered by a high pressure motor with 150 psi output available, it can be recharged using a unique, patent-pending auto retractable 10 foot power cord that plugs into a 12-volt power source. A self-coiling cord, that is over six-feet long, makes it easy and convenient to inflate tires. A bright LED light comes with two options: a white lamp for illumination and a red flashing signal for emergencies. In addition, it can be used as a low pressure inflator/deflator for air mattresses and rafts. Remington Industries www.remingtonind.com

Federal-Mogul Expands Wagner ThermoQuiet CeramicNXT, ThermoQuiet Semi-Metallic Brake Pad Coverage Federal-Mogul has expanded its lines of Wagner ThermoQuiet CeramicNXT and ThermoQuiet semi-metallic brake pads to include coverage of 20 additional late-model foreign nameplate and domestic applications. Wagner ThermoQuiet CeramicNXT brake pads feature proprietary ceramic formulations. These formulations include FederalMogul’s Dynamic Noise Absorption technology – integrated into the pad to target and absorb vibration at the point of contact for quieter braking – and thermal-sensitive properties that adapt to the wide range of temperatures encountered. ThermoQuiet CeramicNXT and ThermoQuiet semi-metallic brake pads utilize Federal-Mogul’s Integrally Molded Insulator one-piece brake pad design and LaserShaped Friction technology. Federal-Mogul www.TQBrakePads.com

www.ssgm.com

12-12-07 8:00 AM

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12-11-07 11:14 AM 12-12-07 8:01 AM

|| TACT Team Management

How to Differentiate Yourself in this Industry

By Murray Voth, TACT

n general, if a Canadian buys a home or a piece of property, that property is considered an asset and will appreciate in value over time. An automobile or truck, or any vehicle for that matter, is considered an asset in accounting terms on a balance sheet. However, that is one of the biggest misnomers in any sense of the word. A vehicle is the fastest depreciating item anyone can buy. Cars lose their value faster than pretty much anything in our economy; yet our society is a car culture. Not only do the majority of us need them to commute to work, we are attached to them. We couldn’t imagine living without them. The building of roads, the manufacture of cars and rubber tires, and the extraction of hydrocarbons to keep the cars running created much of the North American economy. That being said, most consumers just accept the car as fact of life and keep spending their hard earned money on buying and replacing them, and complaining to service providers that we are too expensive and that the services, repairs and maintenance we offer are just not “worth” it on their car. It does not add value to the vehicle so I am just going to drive this one into the ground and buy another one. The point that most of the driving public and most service providers have missed is that spending money on vehicle repair and maintenance is about the cost of transportation, not maintaining the value of a vehicle. (Although you can definitely improve the resale value of a vehicle by maintaining it well, relatively speaking.) Years ago, a young lady brought her 1989 Dodge Shadow to my shop. After servicing it, inspecting it and diagnosing her concerns we came up with an estimate 26 SSGM December 2012

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of approximately $500 dollars. When we first presented it to her she said her car was not worth it, that it was only a $500 car and if she did the repairs she would never be able to sell it for $1,000. We tried to explain that based on the type of driving she did and her annual mileage, she would be able to drive for another whole year with only the cost of an additional maintenance service in six months. Her initial response after that explanation was that she had seen an advertisement for a vehicle financed at $189 a month and that was what she was going to do. We explained to her that after taxes her monthly payment was going to be $214 a month, which was the same as $2,568 a year for four years, after which there would be a buyout needed of close to $10,000. In addition to that we explained that after two years that particular model of car would be worth half of what she owed on it, and that she would still be committed to a minimum of $500 a year in maintenance to keep her warranty valid. She went ahead with the repairs and I am glad she took the time to dialogue with us about the cost of commuting to school and her job, and in the end we kept that Shadow on the road till she finished her degree and she now drives something more to her taste.

Beginning the Dialogue

For many shop owners, technicians and service advisors the automotive business is a place where you sell things: brake jobs, shocks and struts, timing belts etc. Our parts suppliers provide us with posters and other point-of-sale material to put up on our walls. Suppliers also provide incentives on particular items like a Loonie for every belt

sleeve. Imagine an alien from another planet landing on earth and trying to sell you an Interplanetary Composite Material Deflector Shield. They are emphatic that you need one and that it will keep you safe. It is the best thing for space travel. In fact, you will die without one. Oh, and by the way, if you buy one today, you get one free! Best deal in the galaxy! But I don’t have a space ship to attach the shield to you say, how relevant is this shield to my needs? My intention here is not to insult anyone, but to exaggerate what is going on between shops and their customers. When consumers buy, lease, or finance a vehicle, all they know besides the color, comfort, and certain conveniences is that they want this expensive piece of equipment to consistently start, run, and get them to where they want to go anytime they want. When it does not start, or breaks down on the way to work, costs money all the time, is always wearing out and is not worth anything after four years they are upset and frustrated. They make it our fault that it costs them money because we claim to be the experts, but they seem to always have car payments as well as service and repairs, and breakdowns. When they walk into a shop and see all kinds of posters of car parts on the wall, most of them don’t know what they are looking at, so why do we bother? When we sell more fan belts in one month than we do the rest of the year because of the spiff from the supplier, are we actually solving the customer’s dilemma I described above? May as well be a Martian selling an “ICMDS” for your space ship.

Breaking Down the Numbers

Let’s go back to the beginning. It is a www.ssgm.com

12-12-07 11:01 AM

TACT Team Management || fact that most people need a vehicle in our society today; good thing, since we choose to invest our career, time and money to be in this business. The reality is, most new vehicles are going to cost $20,000 and up to buy, but this is where we begin to tell the story differently. Using the example of a car that costs $30,000, with a down payment of $6,000 and $400 a month in car payments, multiplied by 60 months, it equals $24,000. As well, you will also have service and maintenance bills anyways. So what I am suggesting is that we show our clients the value of keeping their cars for five or 10 years more. On the outside it is going to cost them $2,000 a year on maintenance and repairs. That allows for keeping that vehicle in like new condition. Multiply that by five years, which equals $10,000. That is a net savings of $14,000 over each five-year period the client keeps the car past the initial five years. Multiply that by two vehicles and that equals a savings of $28,000

for each five-year period. Divide that by 60 months and it equals a savings of $467 a month. There are not too many service providers in any industry that can save their customer that kind of money and earn those kinds of sales for the business. The more important result is that the car starts every morning, rarely breaks down and gets them where they want to go any time they want. All the service and repairs are budgeted and planned for and even though the vehicle continues to lose value, it is only a method of transportation and saves them money by not always replacing it. Now imagine your shop with a fresh paint job. Add some nice flooring in the waiting area, good customer seating, tasteful artwork on the walls and good music playing. Do your best to have a door separating it from the noises and smells of the shop. Imagine a team of highly paid technicians whose goal is to see that the vehicles they are working on will last for 15 years with the same reliability as a new one. Their goal is to

squeeze every kilometre possible out of that car, not get a Loonie for every belt they sell. Imagine a professional service advisor having the ability to explain to your clients your desire to keep their best interest at heart, which is to reduce and manage their cost of transportation. At that point, in a calm and organized environment the conversation will include topics like brakes, shocks and struts, and timing belts. However, the difference will be that your clients will only need to understand how those things make the vehicle last longer, stay reliable, ride and drive like it was new, and be safe. You will be able to use quality parts and be paid well for your skills and expertise. This is the way to differentiate your shop and build referrals. Referrals are the strongest form of marketing, but take the most work to develop. This article is the beginning of your journey into a whole different world of automotive service and maintenance. Your competition will not be able to touch you. SSGM

Get back to enjoying your business! Learn how to improve your repair facility’s profitability, productivity and reduce your stress. Dave Meunier’s Automotive Management Training and Consulting group is one of the most sought after providers of business solutions for shop owners in Canada.

Flexible training courses are offered across Canada and include:

The explanation, for the success of TACT students comes from a well tested common sense approach to managing every aspect of day to day operations, starting in the bays and working its way to the income statement.

Advance PROShop Manager Modules – Full day topic specific sessions designed to allow you to get answers to your own shop challenges. Topics include: ● SHOP SYSTEMS & PROCEDURES ● ADVANCED SERVICE ADVISOR SKILLS ● PROFIT IMPROVEMENT STRATEGIES

Enrolling in one of Dave Meunier’s shop improvement courses will provide you with the confidence to analyze your business monthly to look for ways to improve profits and lower your stress.

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course will teach owners to take better care of your customer, save them money and allow your shop to be more profitable than ever before.

PROSHOP Performance Groups – This is a once a month program, where automotive repair facilities come together to receive training, solve concerns affecting their business, implement solutions and take better care of their customers.

Just contact Lee Meunier, Toll Free at 1-866-489-8228 (TACT) or by email Lee@proshopmanager.ca

Brought to you by TACT Total Automotive Consulting & Training Group www.ssgm.com

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SSGM BAYWATCH New Products

Snap-on Micro-Lithium Cordless Impact The new Snap-on 1/4-inch Square Drive MicroLithium Cordless Impact (CT625) is the perfect tool to access tight spaces quickly and efficiently and is a “must have” for every service technician who wants to improve productivity and performance. The new Snap-on 1/4-Inch Square Drive MicroLithium Cordless Impact (CT625) features: 60 ft. lbs. of torque output, patented digital variable-speed toggle style trigger for precise control, twin-beam headlights illuminate work area, built-in brake stops the tool from throwing sockets and fasteners, quick 30-minute battery charge for less down time, over current protection protects the electronics, under voltage protection will not overdraw the battery, built-in gauge lets you know the state of the battery charge and screened motor keeps debris from entering critical components. Snap-on www.snapon.com/powertools

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“Twist and Spray” Aerosol Design Now Available on PlastiKote Premium Paints “Twist and Spray” technology will now be available on PlastiKote premium enamels and primers. This design features the twist and lock cap that makes the spray painting experience easier, faster and cleaner than ever before. Among the features of the new PlastiKote aerosol can is the large, comfortable finger pad that requires 33 per cent less finger pressure to use than other spray paint cans. The patented spray top, an integral part of the can’s design, shields the finger from paint and features a twist and lock design, so there is no separate top to remove or replace after use. In addition, the new PlastiKote spray paint formula provides consistent, quick-drying coverage, and dries smoother for a more polished, professional looking project. PlastiKote www.PlastiKote.com

www.ssgm.com

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12-12-07 8:03 AM

SSGM BAYWATCH New Products

Mahle Clevite Introduces Enhanced Victor Reinz Gasket Catalog Mahle Clevite Inc. expanded the Victor Reinz gasket product offering with a new catalog including 1,570 new part numbers and expanded coverage on model years 1990 and newer. The catalog is now available in print or for PDF download on www.mahle-aftermarket. com. The new product numbers and coverage can also be viewed in Launchpad, a portal of eCatalogs. The new gasket catalog contains a total of 6,875 unique gasket part numbers that cover over 221,255,000 vehicles in operation. The Launchpad portal allows for a convenient way to search, view and/or purchase parts within one user experience by entering the model or OE number. Launchpad features an “Add to Cart” ordering function tied directly into consumer accounts. Users do not have to be logged in to search for an application, but if logged in they can easily add parts from any electronic catalog to the eCommerce ordering tool, MAHLECleviteOrder.com. Mahle Clevite Inc. http://catalog.mahle-aftermarket.com

New ANCO Transform Hybrid Wipers The best features of today’s most advanced “beam” and “bridge” style wiper blades have been combined in a stylish new hybrid wiper design from Federal-Mogul’s marketANCO brand. New ANCO Transform wiper blades integrate the aerodynamic features and all-weather efficiency of beam style blades with the precisely positioned pressure points of bridge blades for exceptional wiping performance. ANCO Transform wipers are equipped with an integral spoiler that helps maximize downforce and a unique secondary linkage with bowed flexor for firm, consistent

blade-to-glass contact for optimized wipe performance at high speeds. Transform wipers also include an advancedformulation rubber element that provides a streak-free wipe under a full range of conditions. Transform wipers are available for a vast majority of North American passenger vehicles, with blade lengths ranging from 16 to 28 inches. For non direct-replacement applications, Transform wipers utilize Federal-Mogul’s fast, easy ANCO KwikConnect installation system. Federal-Mogul www.ANCOWipers.com

Maradyne Offers Junior Jet 150 Portable Air Compressor The Maradyne Junior Jet 150 (p/n MJJ150) portable air compressor is designed to supply 150 psi of air to vehicle tires, bikes, inflatables and more. Ideal for use in the garage, the Junior Jet 150 features a low noise, high airflow design to quickly deliver air through a 27-inch high pressure air hose that is equipped with a quick-release thumb twist valve connector. It has an average fill rate of 7 lbs. a minute on a 16” automotive tire. Maradyne’s Junior Jet 150 has a built-in air pressure gauge rated at zero-150 psi and a flashlight, which adds safety and ease of use at night. Its heavy duty, gearless direct drive motor and oil-less design make it a maintenance-free accessory. The Junior Jet 150 comes with two plastic inflatable nozzles, one ball needle and rugged nylon carry case. Maradyne High Performance Fans www.maradyneHP.com

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European Import Needs? HELPS YOU SUCCEED. AUDI BMW FIAT JAGUAR LAND ROVER MERCEDES MINI PORSCHE SAAB SMART SPRINTER VOLVO VW

Offer the best !

Bosch batteries - optimum O.E. quality power for European vehicles

Our success is driven by people. Auto-Camping Ltd. distributes automotive original equipment and quality replacement parts and lubricants for European vehicles! Auto-Camping imports from European original equipment manufacturers and ISO approved companies and has developed very tight relationships with them since our incorporation in 1960. With 16 locations across Canada, we make reliable deliveries to our installer customers multiple times daily - for their success! www.autocamping.ca Auto-Camping is an independently owned and operated Canadian company.

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|| Managing Employees

Managing and motivating employees:

Not as difficult as it sounds By Chris Talbot

ormer General Electric CEO Jack Welch had what he knew was the secret to effectively managing employees. “If you pick the right people and give them the opportunity to spread their wings — and put compensation as a carrier behind it — you almost don’t have to manage them,” he once remarked. Welch made management sound easy. So why is that so many business owners and managers have such a difficult time attracting, motivating and keeping top talent? One of the reasons is that managers frequently focus on the middle part of that quote. Nobody can deny monetary compensation is an important element of an employee’s work life, but most managers might be surprised to learn it has consistently fallen far down on the ‘Top 10’ lists of things that employees say motivate them to greatness. On the other hand, the average manager

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has consistently believed for decades that the way to manage and motivate is to dangle a carrot by way of financial compensation. According to Greg Weatherdon, an experienced entrepreneur and motivational speaker who regularly speaks with Canadian organizations about how to “get more life” out of their businesses, managing employees takes time, effort and an understanding of the employee mindset. But really, proper management begins even before a new employee joins the team — before you even start collecting resumes, actually.

Hire right ... the first time

An employee that doesn’t fit in with your organization or its culture is not only difficult to manage; it’s an impossible situation. Like Welch, Weatherdon knows the secret to effective management begins with effective hiring.

Good hiring techniques aren’t about advertising for a list of technical qualifications or credentials, but instead a list of the traits and behaviours that will mesh with the culture and set the potential employee up for success, he said. Hiring is never easy, but finding the right person for the job takes time, effort and patience. If you’re hiring the right people, you can get more out of them because they’re happy in their job, said Jay Forte, performance coach, author and speaker and president of Humanetrics LLC. “You have to hire well so you don’t waste all of your time trying to drag somebody into better performance who just doesn’t want to do it anyway,” Forte said.

It’s all about R-E-S-P-E-C-T

If money isn’t the top employee motivator (it’s usually around number six on

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Managing Employees || every list over the last 30 years), then what is? Aretha Franklin sang about it, and if managers want to better motivate their employees, they should get used to giving it. Of critical importance to employee motivation and happiness in any job is respect and appreciation. The old management techniques no longer work. The gruff boss who gives orders to employees like he’s a drill sergeant doesn’t cut it in today’s fast-paced world; and managers need to take a more personable approach to dealing with employees. That doesn’t mean they should be their best friend and go drinking with them on Friday nights, though, said Merge Gupta-Sunderji, leadership expert. Simply getting to know employees at a somewhat deeper level, asking them about their long-term goals, working with them to achieve goals for their own betterment and the success of the company, and doing something as simple as saying “good job” goes a long ways towards motivating employees. A happy employee is a productive employee, after all. Gupta-Sunderji recommends managers schedule 30-minute one-on-one coffee meetings with employees to chat, allowing the employee to lead the conversation. It’s a simple gift of time, which she said is a huge motivator. Simple and genuine communications goes a long way.

Create a culture of education

Education and training, whether it’s formal instruction or more informal on-the-job training, may seem like a daunting and expensive element of a business, but it’s another great motivating factor in good management techniques. Managers are frequently concerned any training they provide will be an opportunity for the employee to seek greener pastures, but that’s not the way owners should look at it, said Bob Greenwood, AAM, president and CEO of Automotive Aftermarket E-Learning Centre. Instead, look at it as an investment that keeps employees engaged, improving their work and, ultimately, creating a better customer experience. www.ssgm.com

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“The employer has got to understand education is an investment, and that is something so many do not acknowledge,” Greenwood said. Another unfortunate aspect of education and training is most businesses simply do not allocate enough of a budget, Greenwood said. Unfortunately, there’s no magic dollar figure every parts dealer should input into their training budget. Even if that budget is available, though, employees have to be motivated to continue their training, whether it’s learning more about the business or taking courses to upgrade their skills. Owners have to foster a culture of learning within the business, Weatherdon said. That also means providing the means to learn during work hours. It’s incredibly demotivating to expect employees to take courses and upgrade their skills on their own time without compensation, he said. It’s even worse to expect them to pay for it out of their own pockets.

Embrace the traits of a good manager

Walk the walk, talk the talk and learn to roll up your sleeves and get your hands dirty when push comes to shove. It may be a jumble of clichés, but they’re all traits of a good manager — one who not only keeps employees focused, but drives efficiencies and helps to create a friendly, fun work atmosphere. There are a number of traits a good manager possesses, including being personally interested in their people, a good listener and communicator, driven and focused, a good worker, selfdiscipline and perseverance. Not everyone is born with these skills, and some will need to spend more time cultivating these disciplines than others to be truly effective in managing employees and motivating them to peak efficiency. In the end, though, when the right people are in the right jobs in the right company, employees will take the initiative and help drive your company’s success. “Most good employees leave due to bad management. And management’s blaming the staff,” Greenwood said. SSGM

Canadian Distributors

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|| Advertorial

It’s all about the service

ust doing the demanded repair work means you are missing many sales opportunities, says motor oil expert LIQUI MOLY. Business for garages is becoming more and more demanding. Where decades ago cars had to have an oil change every 5,000 kilometres, nowadays it can be postponed to up to 50,000 kilometres. That means drivers only come to the garage a tenth of the time and the garage has to find new ways of generating additional turnover. The German motor oil and additive expert LIQUI MOLY provides workshops with extended support. But according to LIQUI MOLY many garages tend to stand by their traditional role as repair shop. Today, with cars with extended oil change intervals and increased reliability, this dries up the income side of your business. The solution sounds both simple and logical: either make more money at each customer visit or make them come more often. Ideally both aspects are combined. This means, of course, that you have 34 SSGM December 2012

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to adjust your business model. You have to change from a mere repair shop to a service provider. What maybe sounds rather theoretical can easily be brought to life. LIQUI MOLY gives you some examples. Imagine a driver coming to the garage for his oil change. A traditional repair shop does the oil change, receives the money and hopes the customer will return next time. The customer is not unhappy with the oil change but they may as well try another garage next time because an oil change is not a very distinctive service. Probably another garage will do the same — even at a lower price. Now imagine another driver arriving at another garage. He asks for an oil change, too. The mechanic sees that the car already has some mileage, so he recommends the customer to also have the engine’s interior cleaned with LIQUI MOLY additives to get rid of deposits and contaminants. After this, the mechanic explains, “the combustion will work properly again, the new motor oil will be able to deliver

its maximum performance in a clean environment, the fuel consumption will be reduced and the engine will be less likely to experience a breakdown.” Then he offers the car driver to put LIQUI MOLY Cera Tech in the new motor oil. “This additive reduces friction and protects the engine from wear,” the mechanic says. Let’s say the www.ssgm.com

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Advertorial || driver agrees on both the engine cleaning and the Cera Tech. Finally, the mechanic has a quick glance at the car and discovers that the annual inspection is due in the near future. The car driver willingly takes the opportunity to get the test done now so he does not need to come a second time. After a while the customer returns to pick up his car. The engine was cleaned, the oil changed, the Cera Tech added and the inspection done. Finally the mechanic offers an extra bottle of one liter motor oil to be kept in the car. He explains that motor oil is not motor oil and every car needs a special kind of motor oil. “When you are on the road,” he says to the driver, “and the oil-level warning lamp is flashing, it is often

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difficult to get the right motor oil on the spot. Either it is not available at the next fuel station or they offer it at very high prices. So it would be reassuring and cheaper to always have the right refill oil with you,” he says. And should the driver not need it, it can be used for the next oil change. Let’s say, the customer also accepts this, too (to make the scenario perfect). What is the difference for the garage in these two examples? The mechanic does not only sell an oil change but also engine cleaning, Cera Tech oil additive, annual inspection and an extra litre of motor oil. He multiplied the income by investing his knowledge and his time. And what is the difference for the driver? He feels that this garage not only handles the standard jobs but really takes care of his car. It runs smoother now, starts easier and even consumes a

little less fuel. To achieve such a win-win-situation it is crucial not to talk the customer into things he originally did not want to have done. You have to explain in an understandable and sound manner why you recommend something. Service doesn’t mean to sell everything to the customer regardless if they really need and want it. Service means to pay attention to the customers and to give them valuable advice, thereby also demonstrating competence and technical knowledge. The customer is far more likely to come back again. Summing up: the tradition of garages — doing repair work and inspections — still forms the foundation of business. But nowadays you have to erect a building on top of this foundation, a building made of technical knowledge and additional services. SSGM

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|| Shop Profile

Best in Class

An independent northern Alberta service shop raises the bar on business excellence and becomes the first Canadian shop to achieve a prestigious AAIA award By Noelle Stapinsky

hen Gustafson’s Auto Clinic Inc., a family-run service shop in Athabasca, Alta, burned to the ground in a devastating fire in 2003, husband and wife team Kevin and Stacey Gustafson did the only thing they could — got back to work. In fact, they only missed two days of work before they set up a makeshift shop at Stacey’s family farm. To keep the business going, they found

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a small, temporary location in town. “The building was smaller than our old shop and we couldn’t keep all our staff,” says Stacey. “One of our techs was offered a job by another shop and he took it so someone else wouldn’t be laid off. And we sent some of our other guys to school to training.” Having such perseverance, dedication and a close-knit family culture is what has powered the business for

almost 30 years. Kevin’s father opened the shop in 1984. Becoming a licensed technician, Kevin joined the family business a year later. Stacey joined the operations in 1987, taking care of the books. In 2001, they purchased the family business. Just seven months after the fire, the Gustafson’s rebuilt their shop — with a new floor plan and larger waiting room — and were up and running at full capacity once again. The Gustafson’s business has always been based on portraying a professional image, and delivering top-notch service and quality. But when they met Bob Greenwood, president and CEO of the Automotive Aftermarket E-Learning Centre (AAEC) a couple years later, their business really started to evolve into the progressive shop it is today. “We were introduced to Bob through our supplier, Automotive Parts Distributor (APD). They want to see shops succeed and offer a business management program by AAEC,” says Stacey. “A lot of shop owners don’t have management training and are usually technicians that just want to start their own shop. We realized we didn’t really have management experience so we took Bob’s course and joined a program through APD. They watched our numbers and gave us advice.” And when Greenwood launched the BEST program — which stands for Business Evaluation Support and Training — the Gustafsons were the first to sign up. Through this program, shops are able to establish a managewww.ssgm.com

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Shop Profile || ment base and gain control and understanding of their revenue numbers. “First, we look at the overall business concept of how a shop needs to be run to meet the future demands of the consumer and the technology entering the industry. Shops need to realize they need competency internally to execute it properly — staffing is top priority for this,” says Greenwood. “Next, we reorganize their numbers so they get a complete monthly report and analysis of their business, showing the objectives they want to attain and measuring those on a monthly and year to date basis.” Stacey says that the BEST program gave them clarity with their numbers, and with AAEC’s Rui Martins help with process solutions, everything began to skyrocket. As Greenwood advises, you don’t want to upset your business by doing a whole bunch of things at once. You should only change two things and work on them until they become a proven part of the business culture. The Gustafson’s have done just that, working at a steady pace over the years to sculpt their business model and improve best practices. When new customers enter their business, they often do a double take and ask if it’s an actual repair shop. The warm coloured walls, candles, leather couches and flat panel TV gives it a comfortable living room feel. The countermen sport ties, the office furniture is new and pristinely kept, and the walls are free of advertising posters and other typical promotional materials. The shop floor is also clean and professional. With five bays, each workstation is equipped with a laptop, and the four full-time technicians have iPads for diagnostics and accessing online resources such as Mitchell, ALLDATA and Identifix. Matching uniforms are provided to the employees, who also get an annual tool and boot allowance. And to the Gustafson’s, education is key for all of their employees. “They’ve invested tremendously in their staff,” says Greenwood. “On average they invest about $10,000 per employee each year on education and keeping them engulfed in their profession.” Every employee — the technicians, www.ssgm.com

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countermen, service advisor, parts person, the owners, and even Kevin’s father, who drives the company shuttle service — have a well-rounded education in everything from technical training to management and customer service. Kevin says that they’ve started purchasing OEM scan tools, are constantly upgrading technology and they’re always on the hunt for new training programs. They’ve even sent techs as far as Toronto — all expenses paid — for training. “You need that education and training to stay on top of your game if you want to be up there competitively,” says Kevin. What’s more, they match employee RSP contributions, offer a $500 bonus after the first year of employment, and a yearly $1,000 bonus for each additional year of service. And most recently the shop introduced profit sharing. “If we meet our goals or anything over and above — obviously we put a certain amount of money back in the shop for new equipment and business upgrades — it gets evenly distributed amongst our employees,” says Stacey. For business transparency, there’s a white board that displays daily goal status, a running overall total monthto-date and what the shops average billed hours are on a daily basis. “A lot of shop owners don’t think their employees need to know the numbers of the business. We’re the opposite. They do need to know what it costs to run the shop,” says Stacey. “This gives them a sense of ownership. They have a sense of pride and feel empowered and part of the business.” Upholding a clean and professional environment also helps create customer loyalty. Gustafson’s Auto Clinic specializes in diagnostics and complete vehicle maintenance. As a member of Be Car Care Aware — Automotive Industries Association’s (AIA) preventative maintenance program, this Alberta shops strives to educate its clientele and manage their vehicles for safety and reliability. “We’re in the knowledge business with today’s technology, not the breakdown and repair business we were years ago,” says Stacey. “We counsel

our clients. We don’t talk about price, but rather the total investment they’re making in their vehicles. And if someone is behind on preventative maintenance and need $500 worth of flushes, but their ball joint is falling out, we’ll work on the safety issue first, then set up a plan that suits their budget to get them caught up.” They also try to pre-book their clients’ next visit, giving them information about what repairs or maintenance will need to be done, why it needs to be done, and how much it will cost to help them budget accordingly. Of course, when Greenwood was contacted by the Automotive Aftermarket Industries Association (AAIA) — AIA’s American counterpart — for a referral of a Canadian service shop worthy of applying for the prestigious “Best in Class” award, he didn’t hesitate to recommend Gustafson’s Auto Clinic. Awarded at this year’s AAPEX show, the Gustafsons’ business is the first Canadian shop to ever win the “Best in Class” award. When asked about this achievement, both Stacey and Kevin laugh and say, “It’s overwhelming.” “It’s very humbling to be considered, let alone winning it. It’s kind of cool,” says Kevin. Stacey adds, “It’s taken a lot of hard work and self discipline, but without our team, we can’t do what we do. With Bob, Rui and [AAEC’s] Rob Ward, we’ve had a lot of mentoring. And we’ve been surrounded by a lot of people that have confidence in us.” In the wake of all this excitement and recognition, the Gustafsons don’t intend on riding on their coat tails. “There’s so much more we want to achieve and plans for continuously moving forward — and we’re also planning to double the size of our facility in the near future,” says Stacey. As the aftermarket industry transitions from a trade to more of a technical profession, this small town Alberta shop’s progressive business model is certainly poised for future growth, while blazing the trail for the shop of tomorrow. SSGM December 2012 SSGM 37

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SSGM Service Station and Garage Management

.com

Automotive Internet Directory

Visit these companies directly at their web addresses or check out the growing list of Hot Links at www.autoserviceworld.com. To find out how your organization can be included in this directory and on the web, contact aross@jobbernews.com

AUTOMOTIVE ELECTRONICS Allan’s Automotive Electronics Ltd.

www.allansautomotive.com Phone: 780-469-8060 Your Automotive Test Equipment Repair Specialist Tool Sales and Service. We provide service and warranty for most makes of automotive test equipment.

AUTOMOTIVE PARTS & ACCESSORIES Aisin World Corp. of America, Inc. (AWA), a leading Tier One automotive components supplier and one of the world’s largest manufacturers of aftermarket parts. AISIN’s original equipment technology and know-how is used to ensure product quality and reliability. To learn more about our products, request a catalogue today. www.aisinaftermarket.com Goodyear Engineered Products www.goodyearep.com/aftermarket www.goodyearbeltsandhose.com The officially licensed belt of NASCAR. Gatorback, the quiet belt. You can never replace Goodyear quality. NGK Spark Plugs Canada Limited www.ngksparkplugs.ca The World Leader in Spark Plugs, Oxygen Sensors and Ignition Wire Sets. Used by 87% of the World’s OE Manufacturers S.B International Inc. www.sbintl.com “We keep engines humming”

AUTOMOTIVE RECYCLERS Carcone’s Auto Recycling and Wheel Refinishing www.carcone.com With over 32 years of experience Carcone’s Auto Recycling & Wheel Refinishing is your one stop for quality recycled products and wheel refinishing needs. Call today at 1-800-263-2022 or visit us on line at www.carcone.com Standard Auto Wreckers View Our Online Inventory @ www. standardautowreckers. com or call 416-286-8686. Experienced Shipping Department to Ensure Parts Arrive Safely.

BUSINESS MANAGEMENT SERVICES The Automotive Aftermarket E-Learning Centre Ltd www.aaec.ca AAEC - BEST - Business Evaluation Support & Training - Instructing and Coaching with the Proven Business Management Tools that drives a shop’s Bottom Line, Team Culture and Marketplace Credibility.

HAND CLEANERS GOJO Industries, Inc. www.automotive.gojo.com GOJO is a leading manufacturer of skin care products and services for many marketing including automotive and manufacturing. GOJO continues to pursue a commitment of creating well-being through hand hygiene and healthy skin.

REFRIGERANT Duracool Refrigerants

www.duracool.com Nationally Distributed by: Deepfreeze Refrigerants Inc. The Leaders in Hydrocarbon Refrigerant Technology. Guaranteed In writing not to harm any Mobile A/C System. You can feel the Difference that Quality Makes. “Our Formula Never Changes”.

TOOLS & EQUIPMENT AIR LIQUIDE CANADA INC. www.airliquide.ca Your one-stop shop for all your industrial gases and welding supplies.

WAREHOUSE DISTRIBUTORS & BUYING GROUPS Bestbuy Distributors Limited www.bestbuyautoparts.ca Independent buying group and warehouse distributor that allocates its profits to member shareholders and provides unbeatable value for independent jobbers. The E.R.I. Group www.theerigroup.com Canada’s Premier Machine Shop Buying Group Kerr Machine Shop Group Inc.

www.kerrmachineshopgroup.com Buying group for machine shops and performance shops.

ADVERTISERS’ INDEX Advertiser

Page #

Website

Advertiser

Page #

Website

Auto-Camping . . . . . . . . . . . . . . . . . 31. . . . . . . . . . . . . . . . . www.autocamping.ca

Matco. . . . . . . . . . . . . . . . . . . . . . . . . 17. . . . . . . . . . . . . . . www.gomatco.com/jeff

BMW Canada Inc. . . . . . . . . . . . . . . . 39. . . . . . . . . . . . . . . . . . . . . . . . www.bmw.ca

Mevotech. . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . . . www.TTXTerrainTough.com

Cardone. . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . . . . www.cardone.com

Mr. Transmission. . . . . . . . . . . . . . . . 23. . www.mistertransmissionpartners.com

Chevron. . . . . . . . . . . . . . . . . . . . . . . 25. . . . . . . . . . . . . . . . . . . www.Havoline.com Chrysler Canada . . . . . . . . . . . . . . . . 11. . . . . . . . . . . . . . . . . . . . . www.mopar.com Federal-Mogul Corporation . . . . . . 40. . . . . . . . . . . . . . . . www.TQBrakePads.com Ford Motor Company. . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . www.ford.ca

Prenco . . . . . . . . . . . . . . . . . . . . . . . . 28. . . . . . . . . . . . . . . . . www.prencocorp.com Ross -Tech LLC. . . . . . . . . . . . . . . . . . 33. . . . . . . . . . . . . . . . www.VCDS-ProKit.com VL Communications. . . . . . . . . . . . . 29. . . . . . . . . . . . . . . . . . . . . . www.vlcom.com

Gabriel. . . . . . . . . . . . . . . . . . . . . . . . 19. . . . . . . . . . . . . . . . . . . . . www.Gabriel.com

UCI-FRAM Group. . . . . . . . . . . . . . . . 13. . . . . . . . . . . . . www.framadvantage.com

Liqui Moly GmbH. . . . . . . . . . . . . . . 15. . . . . . . . . . . . . . . . . . . www.liqui-moly.de

Volkswagen Canada. . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . www.vw.ca

Mac Tools. . . . . . . . . . . . . . . . . . . . . . 22. . . . . . . . . www.mactools.com /franchise

WORLDPAC. . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . www.worldpac.com/2012ss

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EnginEErEd to bE

The ulTimaTe

ceramic Brake Pad.

New Wagner ThermoQuiet CeramicNXT features advanced proprietary formulations that deliver the next generation in premium ceramic brake pad technology. The core of these formulations is Dynamic Noise Absorption™ (DNA) technology that is integrated into the brake pad to target and absorb vibration at the point of contact for even quieter braking. These proprietary formulations are also engineered with thermal-sensitive properties that adapt to a wide range of temperatures encountered in every day driving conditions for superior stopping performance. This latest friction technology plus the Integrally Molded Insulator (IMI™) and patented Laser-Shaped Friction™ make Wagner ThermoQuiet CeramicNXT the ultimate ceramic brake pad.

Dynamic noise absorption™ tecHnoLoGy formulations absorb vibration for quieter braking

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