Mopar Masters Guild March - April 2017 Edition

Leaders in the sale of quality Mopar Parts.

March - April 2017

Also In This Issue From the Desk of MMG President Susan McDaniel ...................... 2 Dealers Relying More on Fixed Ops NADA Study Finds ............................... 5-6 Auti Care Association Keeping Tabs as “Right to Repair” Deadline Nears 6-7 The View from My Office ................. 8-10 Creating a Career Path for Employees ...........................................11-13

Mopar Masters FCA 20 Group Meets in Auburn Hills Pages 3-4

MMG Supporting Vendors .............14-15 Reynolds & Reynolds........................16-17 OEConnection ....................................18-19 Snap-On Business Solutions ...........20-21 Elite Extra...........................................22-23 10 Missions Media ..................................24 AER Sales ............................................25-27 Autobody News........................................28 Katzkin Automotive Leather ................29

Contrary to FCA statement, own carrier’s knowledge, State Farm adjuster refuses pre-scans on 2016 Ram bedside replacement Pages 36-38

Dataset .......................................................30 UPS .............................................................31 KIS Solutions ......................................32-34 Rousseau Storage.....................................35 OEM Procedures Change More Than You Think - Check Every Time!....38-39 2017 MMG Committees ........................40

The exchange of information by like size dealers in a non-competitive environment.

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From the Desk of MMG President Susan McDaniel

“Keep Calm and Carry On” -Winston Churchill

This quote may not have come directly from Winston Churchill, but it’s o en a ributed to him, and seems like the sort of thing he would say. It was actually part of a campaign to keep the spirits of the Bri sh people up during war me. It does say a lot about life though, and how to simply keep calm and get on with your life rather than freaking out about the state of things. When you make decisions and live your life out of a state of calm, good things are bound to happen.

Some mes this is easier said than done. One thing about life is for sure…things never stay the same.

In our business today, we are going through some pre y rough changes. These changes could potenally hurt a lot of us. Unfortunately we have to endure the hand dealt to us and make the best of it. In this case especially, we need to take a closer look at the way we run our businesses and see what we need to change or eliminate. We need to provide valid examples and informa on to those making the changes and keep the lines of communica on going as best we can.

Our businesses are all so different. Some are centered mostly around collision with such narrow profit margins, some with a small amount of wholesale mechanical , some with a mixture of both, some are very diversified with many departments. One thing is for sure, we are all striving for the same thing in the end… to make money. We are all aware that when you try to put the same size shoe on everyone it won’t always fit.

I think we can all agree that many mes in our lives when we have had disagreements with people and both sides have stated their case and neither wants to budge, it just takes me. Everyone has a different agenda and facts and specifics need to be surfaced before the real truth is revealed. The whole big picture needs to be realized.

While we are in the midst of the storm, the best thing we can possibly do is “Keep Calm and Carry On”.

Susan

Mopar Masters Guild Magazine

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Mopar Masters FCA 20 GROUP Meets in Auburn Hills On Monday March 27th and Tuesday March 28th our Mopar Masters FCA 20 Group met with Mark Beaton in Auburn Hills.

It was great seeing Mark again (especially since we almost didn’t!) Mark always adds such great insight to our discussions and really triggers our minds to think about things in a way that we normally wouldn’t. Some mes it’s just difficult to see the whole big picture (s).

Also in a endance were Jen Short and Michaele Beaton. It was wonderful seeing them both. Jen always does such a knock- out job preparing and organizing everything for our sessions. Jen and Michaele both just add a lot of spice and class to the atmosphere.

Observing were Fred Davis and Christopher Jolley with FCA A er Sales Training Management. Thank you for listening to me these last several months Fred!

Also in a endance were Karl Fauss and Perry Brandt with FCA Training.

Jeff Conklin from FCA Capacity Planning dropped by to speak about service capacity, training and hiring. The percentages of technicians coming in to our field and going out were astounding. We definitely need to step it up if we intend to persevere in the future. Recrui ng at voca onal schools and training our technicians from the ground up is becoming more and more of a realiza on in today’s world.

Gregg Owen with Text2Drive was also on site to talk about this great new innova on. More and more dealers are jumping on board every day.

Tex ng is definitely the wave of today! There are so many different things a dealership can do with this cost effec ve program, it is definitely worth looking into.

We had our “Best Prac ces” session on Monday and it was interes ng and intriguing as usual!

All of the presenta ons were very helpful and the par cipa on was greatly appreciated. The winners were Dan Hu on, Glenn Hojnaki, Paul Allred, Mike Opperman, and Susan McDaniel.

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Continued from Page 3 We ALL have so much to learn from each other and these sessions play such a big part of our “take away” moments in these 20 Groups. It’s those simple ideas and prac ces that we do in our own departments every day that will really make a big difference for our fellow group a endees.

On Monday evening we all met at the Moose Preserve to chat up and discuss the remains of the day and had a surprise visit from our old friend Fred Hale.

It was great to see Fred! For those of you who don’t remember, Fred directed and starred in the old Master Service and Parts videos.

On Tuesday morning we were back at it. Mark really touched on the importance of I-Exam and becoming more involved in studying the financial statement which is posted by the 15th of every month. Don’t forget to make it a habit to check it out.

In Dealer Connect, Go to Network tab > Business Management block > Financial Statement Analysis (iExam) Fin. Stmt. (bo om row). See the whole big picture!

Another important part of our me together is the break-out sessions when we discuss key points in the composites that are put together for us with the informa on that we provide to Jen beforehand. This is always a great way to learn and help each other with poin ng out strengths and weaknesses in a very diploma c way.

We wrapped up our day on Tuesday with Mopar. We discussed the new changes to Dealer Rewards, the Collision Rewards Program and the dreaded LKQ partnership. Many ideas and thoughts were shared and hopefully the discussions will con nue. We have much work ahead of us to make this business grow and become beneficial and prosperous for ALL of us.

Your President,

Susan McDaniel Mopar Masters Guild Magazine

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Dealers relying more on fixed ops Store expenses rising faster than revenue, NADA study finds Car dealers are ge ng more of their profits from the service lane even as unit sales remain near record levels, an NADA study found.

Dealerships rou nely lean on their service and parts departments during a recession. The U.S. is not in a recession but that’s exactly what stores are doing.

As a percentage of a dealership’s total gross, profits fell in the new- and used-vehicle departments, but rose in service and parts, an annual study by the Na onal Automobile Dealers Associa on shows.

The profit gains come a er about a third of all U.S. light-vehicle dealerships expanded their service departments by at least one bay in the past 18 months to capture more service revenue, said NADA Chief Economist Steven Szakaly. And with new- and used-vehicle price compe on remaining intense, Szakaly predicted, “Going into a [sales] plateauing year, customer loyalty is going to be very key for dealers.”

That loyalty will come from expanding fixed opera ons’ revenues, he said.

Some other trends that the study revealed: con nued dealership consolida on, increased hiring and dealers paying more for talent even as vehicle sales plateau and pretax profit margins remain flat.

The NADA Data 2016 study, based on 2016 data, is the associa on’s annual financial profile of franchised lightvehicle dealerships. Dealers have three weeks to par cipate in the full study, to be published this summer, said Szakaly.

Ini al findings show that at the average dealership, service, parts and body shop gross profits grew to 47.3 percent of the dealership’s total gross profits in 2016, from 45.4 percent in 2015. In contrast, the new-vehicle department’s gross as a percentage of total gross fell to 27.8 percent from 29.5 percent. In used-car sales, it was 24.9 percent, off from 25.1 percent.

Last year, new-car dealerships wrote 259 million warranty and customer repair orders, up 6.5 percent from the previous year. On average, express service at dealerships, such oil changes, increased 11 percent, while nonwarranty repair orders rose 4.2 percent.

The average dealership’s revenue from sales -- including new- and used-vehicle sales, finance and insurance and fixed opera ons -- rose 5.1 percent to $59.6 million. The average number of new vehicles sold per dealership was 928, up from 916. The average selling price of a new vehicle increased 3 percent from 2015 to $34,449 and that of a used vehicle rose 2.5 percent to $19,866.

But the average dealership’s total expenses rose more sharply than its revenue from sales, 6.5 percent, to $6.5 million. In turn, pretax profit dropped 2.4 percent to $1.5 million. The average dealership’s pretax profit margin -- profits as a percentage of total revenue -- eased to 2.5 percent in 2016, from 2.7 percent in 2015 and 2.6 percent in 2014.

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Continued from Page 5 A big part of the higher expenses was because of staffing. New-car dealerships directly employed a record 1.1 million workers in 2016, up 2.4 percent from a year earlier. That was about 69 workers per dealership vs. 66 in 2015.

Dealers also paid more to a ract and keep talent, Szakaly said.

Average weekly earnings of dealership employees rose 2.6 percent, boos ng total annual compensa on to an average of $69,000 per employee. Szakaly said that means dealership employees earn one of the highest average salaries of any industry. The average weekly earning per employee was $1,122.

The ba le to hire service technicians helped drive up pay, said Szakaly.

“The service-tech shortage is reflected in the rising wages and earnings,” he said. “That’s why you see these rising wages in what you pay people so you can a ract people to the industry.”

While dealers hired in the service bay, the number of back office employees shrank, largely because of dealership consolida on, Szakaly said.

The number of dealership groups with 11 or more stores climbed to 138 in 2016 from 90 five years earlier, the study showed. Those with just one store decreased by 990 stores, or about 17 percent, since 2011 to 4,972 in 2016.

Auto Care Association keeping tabs on OEMs as ‘Right to Repair’ deadline nears The 2018 model year marks the deadline for full “right to repair” compliance under the infamous Massachuse s law and subsequent nationwide OEM-aftermarket agreement, and the Auto Care Association is watching to ensure automakers live up to the law and bargain.

Under the memorandum of understanding (MOU), automakers were required to sell tools and repair informaon to non-dealership mechanics and collision repairers at a “fair and reasonable price,” Auto Care Associa on regulatory and government affairs Senior Vice President Aaron Lowe said in a Friday webinar.

OEMs already had to provide diagnos c informa on and tools to the a ermarket under the 2014 agreement.

But by the 2018 model year, the signatories also agreed to allow third-party devices to interact with on-board diagnos c and repair systems (one method is the frequently cited J2534 standard) — the final piece of the 2014 agreement. 2018 model year vehicles should be appearing this summer or fall, but OEMs have been making good on the agreement already.

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Continued from Page 6 “We s ll are monitoring repair facili es in Massachuse s,” said AutoZone government and community relaons Vice President Ray Pohlman. To the OEMs’ credit, observers are “not detec ng too many problems” in that state, according to Pohlman.

In February, the Auto Care Associa on and Coali on for Auto Repair Equality contacted all signatory OEMs for an update on their compliance. About a third responded, all assuring they’d meet the demands of the deal, according to Pohlman. However, the groups haven’t heard from some of the larger OEMs yet, and “that’s giving us a li le bit of concern,” Pohlman said. They’ve pushed for a “hearing of compliance” in Massachuse s, and such a forum is planned for around June, Pohlman thought. “We’ll have a be er idea” then, he said.

Lowe said that ques ons s ll remained over how many model years prior to 2018 will have on-board vehicle diagnos cs and repair informa on available under the terms of the law. Honda, for example, had promised to make older models available, but that’s not necessarily going to be the case for all OEMs, he said.

Dorman Products general counsel and Vice President Tom Knoblauch cau oned that a fight s ll could arise over the embedded so ware within individual parts, such as control modules. A few years ago, vehicles had less than 10 control modules. Today, there’s several dozen, he said.

What owners and repairers can do with this so ware isn’t se led. “We can’t forget about this embedded so ware challenge that we have,” Knoblauch said.

While patent law, which applied to mechanical devices, always had a “right to repair doctrine,” copyright law isn’t so cut-and-dried, according to Lowe. Vehicle owners and technicians aren’t sure about their rights, and the copyright office has suggested leaving it to the courts, according to Lowe — a poten ally protracted and uncertain process the the Auto Care Associa on hopes to avoid.

Further out, the prospect of autonomous vehicles raises another repair access ques on — given the safety implica ons of an unqualified technician sending a flawed self-driving car back on the road, what happens to the right to repair? We put this to the panel Friday.

Lowe said that a right to repair wasn’t limited to a specific type of automobile. And he’s right; the MOU applies to anything an OEM sells that weighs under 14,000 pounds and isn’t a motorcycle or RV/motor home. “It’s much more complicated than ever,” Lowe agreed. However, he said the real needs were OEM standardiza on and availability of calibra on techniques, as well ensuring independents can obtain the data from the vehicle.

Source: www.RepairerDrivenNews.com

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Hi all, Kat here. It has been a while since I have wri en anything and I have missed it! The View From My Office has changed a bit. I am no longer a full- me driver. I am now doing outside sales, out visi ng our customers, which was always my favorite part! I have plans to write about that in future ar cles. I have a lot of catch-up wri ng to do!

I wanted to start by saying what a great me we all had in New Orleans this year! It was so nice to see everyone and to meet new friends. It was a bonus to see past Mopar Masters come to our 25th anniversary. It was so awesome to see Ole & Sharon Olson, Tom & MaryAnne Watson, and Steve and Carol Benoit - I have missed you guys! Who would have thought our group would s ll be going strong a er 25 years! Rick has a ended 24 of these years and I have been to 23! The friendships that have grown and developed over these years are so dear to my heart. We have watched each other’s children grow, celebrated re rements, and sadly some passages, explored new ci es, and have so many great memories. Between NADA, Performance Group mee ngs, Chrysler Lifestyles trips, and personal travel, we have shared so many great adventures and developed forever friendships.

So - New Orleans - my favorite city to visit! I was extra happy this year because we brought our 2 daughters, Jessie who is 25 and Terra who just turned 21. Many of you remember the girls from when they were very li le. Terra’s first NADA she was only 3 months old and Jessie was 4!! They have always wanted to go because I always have good stories to tell when we come home from there and I always tell them how much I love it.

We have always told them we would take them some day but they had to wait ll Terra turned 21, so we made good on our promise. I had so much fun exploring the city with these two. We found secret bars and places to explore, places you needed to have secret codes or passwords to get in! So much fun! And then there was the cemetery at the far end of town at the end of the streetcar line! What an adventure that was just ge ng to right Laura Windham! All in search of the Weeping Angel. Well we found her and she was so beau ful and sad all in the same. I could go on forever about our visit - but I have another story to tell!

Last year there was a promo on contest put on through Mopar by Interstate Ba eries, Dealer Tire and Pennzoil - 2016 Mopar Challenge. It was based on re sales and oil purchase. Well our Parts Director Rick Monteiro and our Service Manager Gary Block won!

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Continued from Page 8 The trip was 3 nights at the Sandals Royal Bahamian Spa Resort in Nassau, Bahamas. The parts trip was March 2-5 and the service trip was March 5-8. Rick and I extended the trip out to make it a week and spent the first part in our na on’s capital Washington DC. Neither of us had been there before. We had a great me. The weather was perfect and exploring just a small part of this city, with all the history and incredible buildings and architecture was amazing. Rick had wri en our California Senator Dianne Feinstein asking her for ckets to the capital.

She sent him an email for us to visit her office while we were there to pick up our gallery ckets. When we went to pick them up Rick talked them into taking us through the underground tunnels that connect their buildings to the Capital, usually off limits to the public since 911. So that was really cool, seeing all the important people going in between. The intern that was escor ng us kept quietly poin ng out who was who. The museums - all free - at the Smithsonian, the Washington Monument standing tall and proud, walking along the Vietnam Memorial Wall with all those names, standing in front of the Lincoln Memorial and feeling the importance of this place and all the marches and gatherings that have happened there that changed history, it’s just all so thought and soul provoking. We had an awesome room at a place called AKA White House, just 2 blocks from the White House.

Definitely a trip to remember. We would love to go back again because there was so much to see.

On Thursday, it was on the plane and on our way to the Bahamas! As I was looking over the list of a endees I realized there was not anyone that I knew going. Good opportunity to meet new people. The Sandals Royal Bahamian resort was so nice and so beau ful. It was an all-inclusive resort on the beach with 10 different restaurants to choose from. Our favorite by far was Gordon’s on the Pier. Thursday evening was the welcoming dinner. A chance to meet fellow parts managers. It was on the beach with tables covered in white and strings of light above. Very elegant se ng on a beau ful night. Rick and I sat with Michael and Joelie Wang. And they just happened to be from DC!! So, we had a lot to talk about a er just visi ng their city. Friday was a gorgeous day. Rick went on the snorkeling cruise while I stayed at the resort. I pulled a lounge chair up close to the water on the beach and just hung out there for the day, which was just perfect! Late a ernoon is when the wind started to make her appearance! We got together with Juan (the Juan and only) Robles and Yessenia Rojas from Stoneridge CJD in northern California, for dinner. We planned on taking the boat over to the private island and having dinner at Stew Fish. By now the wind is blowing pre y hard and the docking of the boat became too difficult for people to board. So they went to the other side of the dock and let the wind blow the boat towards the dock and somehow managed to get us on board with no one falling down! Not even me!! As soon as we took off water started spraying over the bow of the boat and everyone si ng on the sides immediately jumped up and sat in the middle!

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Continued from Page 9 It was rough going and soon they were turning around to head back in - but wait - there is one couple s ll on the island from earlier in the day - so we turned around and the captain of the boat got us there without too much of a soaking!

We had a wonderful dinner, the chef even came and visited our table! Then the guys running the boat said it was me to go, they were shu ng down due to weather. We made it back all safe and con nued the party inside at the piano bar! Saturday was a take shelter kind of day. Everything beach related was closed down and the wind was howling all day and night. They moved our farewell dinner inside to a ballroom where we had the opportunity to meet more new people. At the end of dinner, we hooked back up with Juan and Yessenia for more cocktails this me at the Pub. It really was a fun few days.

What was interes ng about this trip was mee ng new people. We talked about the Mopar Masters and Rick did his best encouraging the guys that were eligible to join our group. Funny how most of them have heard about Rick and others in the Mopar Masters and were excited to meet him. I am holding out hope that at least a couple of them will join us at a future mee ng.

To say I am grateful for being a part of such a great “family” isn’t even enough. Being a part of the Mopar group has given us such great opportuni es and has enriched our lives with travel, experiences, and most of all comradery of great friendships and acquaintances. I am thankful every day for this. As Gerry Oakes would say to all of you “I love you man!!”

Happy 25th Anniversary Mopar Masters Guild Kat Monteiro

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Creating a Career Path for Employees It’s not just some mantra—it’s everything Joe Amodei has built his business around: “When our company grows, everyone within it grows.”

As The Collision Centers expands to its fi h loca on in the New York City area, Amodei credits the success of his business to that mindset. With each new loca on, he has a number of quality candidates wai ng in the wings, ready to help li the mul -shop network to new heights and help his mission of providing quality repairs to customers.

As the technician shortage con nues to affect shops na onwide, Amodei says it’s not enough to simply recruit quality employees. Because if you don’t put just as much effort into crea ng a career path for those employees, they won’t feel like they’re growing individually, no ma er how much your company grows. It’s a prac ce he says single-loca on opera ons can replicate by u lizing their own employees and resources.

Tanya Mulvey, researcher for the Society for Human Resource Management (SHRM), would have to agree, especially a er surveying 800 businesses for the SHRM/Globoforce Influencing Workplace Culture Through Employee Recogni on and Other Efforts study to determine best prac ces for improving reten on.

The study shows reten on isn’t just a problem for collision repair: 46 percent of surveyed companies cited employee reten on as their top challenge in 2016, an increase from 25 percent in 2012. And inves ng in employee growth consistently turned up as an indicator of success.

There are plenty of ways to clearly create that career path for your employees—Amodei and Mulvey detail just a few of them.

1. Communicate a clear vision for your company.

In order for your employees to properly envision their futures at your company, it’s important they can see themselves carrying out your values, Mulvey says.

“The companies with the best reten on rates typically had certain values and mission statements that were important to the company,” she says.

Clearly defining your company’s “vision” can be tricky, and shouldn’t be taken lightly, Amodei says. He claims nailing that vision down and finding the right workforce culture allowed his third shop to break from its struggles and expand into the fourth and fi h loca ons.

Amodei says feedback is crucial. At mee ngs, discuss with your employees the true value that your company provides, and then around that, shape your mission statements. That way you can ensure employees are personally invested in the vision.

2. Recognize and reward employees for living up to those values.

Then it’s me to take it one step further, Mulvey says: Tie recogni on to whatever your values are. “That shows employees that these values ma er and that we stand behind our statements. It’s not something we just talk about,” she says. “These are our values and we believe in them and will reward employees for taking ac on and living up to those values.”

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Continued from Page 11 According to SHRM’s survey, employees are more likely to have posi ve impacts on their companies when those companies have employee recogni on programs in place. And when an employee’s impact is recognized, he or she feels directly ed to that company’s success, and is thus more commi ed to furthering that company’s growth.

Mulvey says it’s much more effec ve when recogni on is made personal. Take the me to get to know your employees and present them with rewards they value in their personal life.

“Gi cards are o en seen as generic and not very personable. But if you know an individual and provide them with a gi they’ll care about, that goes much further,” she says. “For instance, if they value their me, you could give them an extra day of vaca on.”

3. Develop a farm system.

Part of Amodei’s growth plan (he’s looking to open one new shop per year) is ensuring there are quality technicians always wai ng in the wings. Comparable to professional sports teams using minor league teams, he calls it his “farm system.”

“Have the right people in process that are going to be able to handle what’s coming down the pipe is key,” he says. “It’s going to get busier and busier as we expand, and we want to make sure we have the right people in place to make it easier.”

Amodei works with a local voca onal school to hire students and veterans into the trade. He typically brings in 10 students at a me (for a smaller opera on, a couple appren ces would do), and they stay with the shop for one year working 10–20 hours per week between the five stores, shadowing technicians and helping where they can. When Amodei opens another store, he says he’ll pick the best candidates and bring them onboard full me.

4. Assign entry-level employees to mentors.

Developing a mentorship program has a dual purpose, Mulvey says. Not only does it help integrate entry-level employees into your business, but it provides established employees the opportunity to oversee another employee’s growth at the company.

Amodei assigns veteran employees to new hires (including the ones that graduate from his farm system) for several weeks to help break them in. He also hired a full- me coach who performs regular training with new employees.

Eventually, the mentees will become mentors, providing employees a sense of advancement as they shape the quality of the team. Mulvey applauds this prac ce, as people are more likely to remain with your company if they feel like leaders within it.

5. Perform regular performance reviews.

Annual reviews are a thing of the past, Mulvey says. Performance management should be a key focus for managers—especially when managing millennials, who crave feedback and constantly want to improve.

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Continued from Page 12 “Having an ongoing conversa on with our employees is important,” she says. “You need to be giving regular feedback and coaching your employees.”

Mulvey says that prac ce took on several different forms in the survey, from implemen ng an appren ceship program to assigning a mentor to employees to developing a peer-to-peer training program. As a manager, simply passing by during the workday and offering ps for improving efficiency is beneficial.

“If you can provide employees with some kind of coaching so they are able to improve their work, they feel like they’re moving up the chain,” she says.

Amodei’s full- me coach is en rely focused on developing the skills of team members.

“When you have one person making it a priority, they get really good at it and have me to work with everybody’s strengths,” he says.

6. Focus on personal development.

In addi on to improving skills in the workplace, Amodei has made personal development a way of showing he’s invested in his employees’ growth. Once per month, he sends two employees—from technicians to es mators to CSRs to managers—to Discover Leadership Training, which is an intense two-day workshop that aims to improve leadership skills.

“At the end of the day, when you succeed in your personal life, you become be er at your work,” Amodei says.

Mulvey says personal development can come in many different forms, from sending employees to classes (as Amodei did) to simply having regular one-on-one mee ngs with employees to gauge their personal growth.

Through that, you can find ways of offering outlets for personal development

Offer a compe

ve benefits package

Tanya Mulvey says benefit plans are scarce with smaller businesses, which affords you the opportunity to separate yourself from compe on and improve employee reten on. Those benefits could include health plans and extra vaca on days, as well as training incen ves and financial aid for educa on.

“If people want to go back to school to get a degree, or get addi onal training that is relevant to the work, employers can help pay for those costs,” she says. “A lot of the companies [in the survey] said it ends up benefi ng their organiza on as well as benefi ng the employees.”

“It’s a really great benefit in terms of recrui ng people if you’re providing benefits and educa onal opportuni es,” Mulvey adds. “They feel like you’re helping them to advance their career and make their lives be er outside of work as well.”

Source: Travis Bean is the associate editor for FenderBender and Ratchet+Wrench

The exchange of information by like sized dealers in a non-competitive environment.

Our Supporting Vendors: Support those who support you.

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Our Supporting Vendors: Support those who support you.

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© 2017 The Reynolds and Reynolds Company. All rights reserved. 4/17

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Our customers like receiving their

invoices online.

Their time is our priority.

Patrick McKinley Controller, CPA Uftring Auto Group East Peoria, IL

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rr.reyrey.com/ReyPAY | 888.781.3020 ©2017 The Reynolds and Reynolds Company. All rights reserved. 1008017-2 4/17 OpenEdge is a division of Global Payments. PayPros® is a registered trademark of Global Payments. © 2017 OpenEdge. All Rights Reserved.

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March - April 2017

SPRING HAS SPRUNG! BUSY SEASON IS UNDER WAY. Make sure you are ready for it by having the most efficient part selling solutions possible.

Find out more at OEConnection.com

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March - April 2017

Provide Peace of Mind for your Customers and Increase Service Retention for your Dealership.

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Dealership will replace the customer’s battery, in the case of failure, for no additional charge as long as the customer owns the car Customers are directed back to your dealership for battery replacement, maximizing customer retention The warranty provides two complimentary jump-start services per covered battery for added peace of mind for the customer

How does the program work?

Warranty can be placed on any OEM or Aftermarket battery that you currently sell that comes with at least a 24 month underlying factory replacement warranty For each approved claim the Dealer is reimbursed for the battery cost +10% and $30 for battery replacement labor The PartProtection Lifetime Battery Warranty can be offered on your New & Used Cars as well

For more information please visit: www.sbs.snapon.com/lifetime-battery

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

21

Advertorial

Mobility in the Service Department Are You Offering Mobile Options?

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March - April 2017

Technology that helps drive your deliveries, while fueling your profitability.

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Mopar Masters Guild Magazine

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Leaders in the Sale of Quality Mopar Parts

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Discover what many of your Mopar Masters Guild colleagues already know – Elite EXTRA can help drive profits for your operation.

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24

March - April 2017

THE FUTURE IS HERE

THESE AREN’T YOUR GRANDPA’S MAGAZINES 03.17

FENDERBENDER.COM / APRIL 2017

PARTS

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PAGE 40

MAKE INSURANCE RELATIONSHIPS WORK

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MOMENTS

SERVICE

Transform tire sales from a hindrance into a profit booster

PAGE 36

HOW TO BOUNCE BACK FROM FAILURE

PAGE 101

Strategies & Inspiration for Collision Repair Success

The secret to solving your parts inventory problem

REINVENTING THE CUSTOMER EXPERIENCE

PAGE 70

10 surefire steps to achieve top-tier net profit

PAGE 42

PAGE 46

COLLISION

SIX WAYS TO FIX LAGGING CLOSING RATIOS

Drive-through estimating done simply—and profitably PAGE 48

PAGE 51

The Art of Profitability Martial arts enthusiast Adam Liu lives by guiding principles that drive his service business to industry-leading numbers.

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Inside two business transformations that each started with one, simple ‘pivot’ PAGE 4 6

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GIVE EMPLOYEES ‘CAREERS,’ NOT JOBS PAGE 79

Finding a Return Daniel and Loraya Inez took a risk in revamping their business model— and it paid off.

Mitch Schneider: The secret to being truly present in your business

BREAK THE MOLD

HOW AUTOMAKERS AFFECT YOUR OPERATIONS— AND WHAT YOU CAN DO TO THRIVE

PAG E 24

F I X E D O P E R AT I O N S

R O U T E TO F I X E D O P S D I R E C TO R / M A N AG E R O R G M

PAGE 55

M RATCHETANDWRENCH.COM

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Leaders in the Sale of Quality Mopar Parts

25

AER Sales and Fred Jones Enterprises your Mopar Powertrain Network.

70+ Years of Automotive Experience Breadth of Inventory Rapid Delivery Powertrain Sales Staff Dealer Training Marketing Support Incentive Programs Opportunity Stability Commitment to business growth

Partners in Powertrain

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26

March - April 2017

Grow and Earn 2017 Earn at each level. $30,000 = 10 x $10.00 gas cards $50,000 = 6 x $25.00 gift cards $100,000 = 300.00 Visa gift cards $200,000 = $1000.00 Bass Pro gift card $300,000 = $1500.00 Marketing funds $400,000 = $3500.00 Travel voucher (Cruise) * Each additional $400,000 earns another trip

Mopar Masters Guild Magazine

Program Details: Enrollment required All incentives subject to 1099 Program runs from 1Ͳ1Ͳ17 until 12Ͳ31Ͳ17 All Powertrain Network sourced (invoiced) parts count towards promo

Leaders in the Sale of Quality Mopar Parts

27

2017 Partner Dealer Program What AER/ FJE provides

Personalized Attention to YOUR Dealership Minimum 2 Days of Personal Sales Assistance monthly Intense FOCUS on Sales Growth thru IRF/Fleet sales calls Quarterly Sales & Product Training Sales Blitz Support & Participation Quarterly Ongoing Support for all aspects of sales growth, Powertrain Minimum 6 month commitment

What Partner Dealer provides

Agree to FOCUS on Powertrain Sales Promote Powertrain thru Outside Sales Efforts Min. 1 day per week, 2 days per month with AER /F JE and 2 on own Attend Quarterly Sales & Product Training PromoteͲHost Sales Blitz Quarterly Stock minimum of 3 units or $7,500 in Powertrain Product Enroll in all FCA ͲMopar Powertrain Programs Minimum 6 month commitment

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March - April 2017

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Mopar Masters Guild Magazine

(800) 699-8251 autobodynews.com

Leaders in the Sale of Quality Mopar Parts

29

The exchange of information by like sized dealers in a non-competitive environment.

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March - April 2017

DATASET Dataset Inc. Your training and implementation solution Quickly and efficiently drive revenue, dealer penetration and utilization Variable resources to address new products/ solutions, backlogs or legacy transition Industry veterans with in-store knowledge & experience who can “talk the talk” Lead with Specialists not Generalists Targeted skill sets for all dealership departments and vendor offerings 145 Nobel Court, Suite 100 Alpharetta, GA 30005 • 678-240-0771 • www.dataset-inc.com

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Leaders in the Sale of Quality Mopar Parts

31

UPS Dealer Services drive better performance Receive exclusive MarketCenter dealer discounted pricing on: • Small package/parcels shipped via domestic ground/air and international services - Savings up to 20% for ground shipping - Savings up to 50% for air shipments

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Improve operational efficiency Quantum View® technology allows you to track your inbound and outbound UPS shipments, customize reports and keep your customers informed of shipment status or potential delays.

Simplify processing and billing UPS Billing Center allows you to receive and view your invoices faster, pay online and create reports to track shipping costs.

Streamline online sales Turnkey solutions offered by UPS Ready® Marketplace Providers allow you to strengthen just about every aspect of your online offering – from website development to order management tools to streamline your orders from all sales channels.

To enroll, visit www.DealerCONNECT.com or visit the FCA US Market Center site located within Dealer Connect.

To learn more about UPS’s Market Center Shipping Advantages: Contact the UPS support line at 1-800-567-9989.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. 10/16

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March - April 2017

Your one call for all things Audio...and more!

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SOUNDBAR XL

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KISͲ CONFIDENTIAL & PROPRIETARY Ͳ 2016

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Your one call for all things Audio...and more!

33

WWW.KISPRODUCTS.COM OR 817.919.0190

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RGB LED’S WITH INCLUDED REMOTE CONTROL PROVIDES 16 COLOR OPTIONS ALONG WITH FUN FUNCTIONS LIKE FLASH, STROBE & MORE!

MOPAR MASTERS GUILD IS IMPORTANT TO US, ANY QUESTIONS OR OPPORTUNITIES; PLEASE CONTACT OUR OWNER, TOM SCHNELL ANYTIME AT: 817.919.0190 support@kisproducts.com KISͲ CONFIDENTIAL & PROPRIETARY Ͳ 2016

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March - April 2017

COMPLETE SOLUTIONS THAT CONSUMERS WANT!

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Mopar Masters Guild Magazine

KISͲ CONFIDENTIAL & PROPRIETARY Ͳ 2016

Leaders in the Sale of Quality Mopar Parts

35

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March - April 2017

Contrary to FCA statement, own carrier’s knowledge, State Farm adjuster refuses pre-scans on 2016 Ram bedside replacement State Farm adjuster has refused to pay for pre-scanning charges on a 2016 Dodge Ram 1500 despite having read FCA’s posi on statement calling it mandatory.

This wasn’t minor damage (which s ll will typically need a scan anyway, per FCA). “It got crunched, so it got a new bedside,” said Nylund’s Collision Center owner Robert Grieve.

The Ram 1500’s es mate was $3,700, which Grieve said was low compared to his shop’s average but s ll indica ve of a decent amount of damage. (The average industrywide repair was only $2,861 in 2016, according to CCC.) But the adjuster from State Farm “Supp Team 14” denied the charge anyway. “I saw the memo from Mopar about pre-scans, but it does not seem necessary to pre-scan a vehicle due to bedside damage,” said the adjuster.

Wait, what?

The document from FCA — the guys who built the truck — clearly states: “Use of the Mopar wiTECH vehicle diagnos c tester is necessary before and a er collision repair.” Nylund’s uses an a ermarket Launch scan tool, which Grieve called an “amazing piece of equipment,” and the pre-scan indeed returned numerous diagnos c trouble codes. (We as usual point out that OEMs do not vouch for anything other than their own tools to correctly and accurately scan a vehicle; going a ermarket is an individual shop decision.)

The adjuster apparently hasn’t talked much to his colleagues, as others at State Farm are certainly aware of diagnos cs. The posi on statement has existed since June, and was discussed shortly a er at a NACE panel with State Farm claim consultant Chris Evans. In January, Evans observed to the Collision Industry Conference that as State Farm tried to come to terms with scanning, its “developing posi on” was to “do what makes sense.”

He said it completely agreed with the sen ment of doing the right thing for a customer.

The FCA document describes safety technology similar to that State Farm apparently referenced late last year in explaining its rate increases to the Chicago Tribune. And another adjuster on the same Ram acknowledged the existence of diagnostic trouble codes by approving an hour to “clear” them. More on that later.

Continued on Page 37

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Continued from Page 36 Asked about the incident and State Farm’s policy on scanning, spokesman Jus n Tomczak wrote in an email Wednesday that “State Farm has nothing addi onal to share with RDN at this me.” The FCA posi on statement also observes that “Safety and security-related systems, such as an lock brakes, supplemental restraint systems (SRS – airbags), occupant restraint controller (ORC), seat belts, ac ve head restraints, forward facing camera and radar, blind spot monitoring, and other automated electronic driver assistance systems, MUST be tested for fault codes (DTCs) that could be ac ve (current) or stored following a collision.”

The Ram’s safety/convenience op ons included airbags, a parking assist system, electronic stability control, power brakes and trac on control. Finally, the FCA document lists six scenarios that could trigger fault codes to help drive its point home, including collisions and “Significant vehicle disassembly including, but not limited to, bumpers, door handles, headlamps and mirrors.” One would hope that a State Farm adjuster thinks that removing a bedside also counts as significant disassembly, when the bedside appears to have been the point of impact in a collision.

Granted, a post-repair scan could flag issues before the Ram is returned to the customer. But pre-repair scanning is like measuring a vehicle prior to a repair — you need it to know and blueprint the scope of the damage and what procedures are necessary. For this reason, a number of OEMs have made it mandatory. It also helps insurers and shops by revealing repair issues up-front, rather than the two companies blowing delivery dates and racking up supplements for items discovered during or a er the repair. In some situa ons, pre-scans can help an insurer and shop deduce items not related to the loss.

“It’s really a prior damage discussion,” Evans observed in January.

Other adjuster The original State Farm supplement adjuster evalua ng the truck did a li le be er, allowing 1.0 hours of mechanical me to clear and reset diagnos c codes, “only a er I showed him the Vehicle Diagnos c Report showing the fault codes for the rear taillights and parktronic sensors in the rear bumper,” an Nylund’s es mator wrote.

But despite his colleague acknowledging the diagnos c report that indicated this work was needed on the customer’s vehicle, the scan supplement adjuster con nues to refuse to pay for the diagnos cs that produced that report, according to Nylund’s. And apparently a post-scan as well.

Continued on Page 38

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March - April 2017

Continued from Page 37 “State Farm would not allow a Pre-Scan on either the original supplement or any of the other supplements that have been submi ed,” the es mator wrote April 4. “On the last supplement emailed into State Farm I requested that State Farm provide us documenta on as to why they would not cover the Pre-Scan that Mopar states must be done on a collision vehicle, and we did not receive any documenta on as to why they would not cover a Pre Scan. We have requested detailed informa on from State Farm regarding their posi on on Pre & Post Repair Scans and s ll have not received anything.”

‘Liability transferring’ Grieve mused that if the insurer made the customer go out-of-pocket for a par cular repair, “then that’s cost transferring.” But when it refused to reimburse a par cular procedure related to vehicle safety systems, “now it’s liability transferring” to a shop.

Should something be compromised on the vehicle, a lack of payment from an insurer wouldn’t hold up in court as an excuse for the shop failing to perform diagnos cs, Grieve argued. “The judge doesn’t give a crap about that,” he said. “I’m the professional.” In any case, Nylund’s scans every vehicle before and a er a repair.

“That way, there’s no confusion,” he said, describing this as helpful from a liability perspec ve.

Source: www.RepairerDrivenNews.com

OEM procedures change more than you’d think — so check every time, Anderson says Do you have to check OEM repair procedures literally every me? Yes, Collision Advice CEO Mike Anderson argued on a Thursday Guild 21 call — for those instruc ons can change surprisingly o en. People ask me, ‘Well, Mike, if I fix the same type of vehicle on a regular basis, why do I need to research that OEM repair procedure on that same vehicle every single me?’” he said during a presenta on on scanning, calibra on, and other elements of modern collision repair. Anderson answered this with a few examples.

Without naming names, he cited one OEM which had twice during the past year changed the way a door post and center pillar was installed. Another unspecified OEM changed the way a truck bedside was supposed to be repaired four Ɵmes last year, he said. “Yes, you heard me correctly,” Anderson said. “… Just because you put the bedside on that way last week, doesn’t mean it’s the same way this week.”

Continued on Page 39

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

39

Continued from Page 38 Anderson also brought up the 2015 Ford Mustang, the second model year in a new design genera on that employs a fair amount of aluminum and boron steel. Some me in the last couple of months, Ford changed the procedures for replacing a quarter panel, according to Anderson. A month or two ago, Ford demanded a shop replace the roof when it replaced a quarter panel, according to Anderson. Two weeks ago, he said he no ced: “Ford has since changed that, and they now have a sec oning procedure.” Without checking habitually, “we’re not gonna know when things change,” Anderson said.

The third-quarter 2016 “Who Pays for What?” survey by CRASH Network and Anderson’s Collision Advice asked about repair procedure checks. About 48.7 percent of the 521 respondents reported researching OEM repair procedures either “all” or “most of the me” — up 5.5 percentage points from 2015. Another 30.7 percent said they checked procedures “some of the me,” 18 percent said “only occasionally,” and 3.1 percent said “never.” “The answer is 100 percent of the me,” he told the audience Thursday.

Repair procedure aggrega on?

Constant changes to OEM repair procedures also raise ques ons about using a third-party aggregator such as ALLDATA or similar offerings from the three es ma ng services instead of original OEM websites. Automaker collision repair trainers cau oned against using anything other than their own OEM websites for this reason last year during the Collision Repair Technology Roundtable at SEMA. James Meyer of Toyota recalled a version of its repair procedures on one such informa on service which was obsolete; the OEM had since changed the methodology. “They’re trying to recreate a database that already exists” and is updated constantly, Mike Kukavica of Porsche said, indica ng that such a project was des ned to have flaws. He said he sees repair informa on change on a weekly basis.

Shawn Hart of Audi also said some mes “fairly important informa on” might be missing on such services. Hart also said that if a technician is working from the OEM website rather than a replica of it, he’s more likely able to assist that repairer with a technical ques on.

An ALLDATA representa ve at SEMA confirmed that there is a lag between when OEMs release updated instruc ons and when the revisions are no ced and incorporated into the service. However, he said that the company was working on bots to scan OEM sites and reduce that me.

Source: www.RepairerDrivenNews.com

The exchange of information by like sized dealers in a non-competitive environment.

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March - April 2017

2017 20 17 M MG M G Committee Com m i t t eess Officers:

Execu ve Commi ee - All Officers Including:

President - Susan McDaniel - Bill Luke CJD – Phoenix, AZ Vice President - Andy Reed - AutoNa on DCJ – North Richland Hills, TX Treasurer - J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT Secretary - Ma Jarvis - Bald Hill DCJR - Warwick, RI

Marvin Windham - Benchmark CJD – Birmingham, AL Rick Monteiro - Jack Powell CJD – Escondido, CA Joe McBeth - Dallas DCJ – Dallas, TX Paul Allred - Stateline CJD – Fort Mill, SC Gerry Oakes - Baxter CJD - Omaha, NE Dan Hu on - Tom O’Brien - Greenwood, IN Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

Commi ees: Nada 2017 Planning

Newsle er/Website/Social Media

Casey Brown - Autona on CDJ - Katy, TX

Don Cushing - Mopar Masters Magazine

Finance Commi ee

Vendor Chairmen

J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT Susan McDaniel - Bill Luke CJD – Phoenix, AZ Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

Paul Allred - Stateline CJD - Fort Mill, SC Mike Opperman - Baxter CJD - Omaha, NE

Vendor Commi ees CDK Global

Reynolds & Reynolds

Andy Reed - Allen Samuels DCJ – North Richland Hills, TX (Chairman) Paul Allred - Stateline CJD – Fort Mill, SC Mike Opperman - Baxter CJD - Omaha, NE Mick Padgeon - Fred Beans Parts - Doylestown, PA Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Rick Monteiro - Jack Powell CJD – Escondido, CA (ALT)

Marvin Windham - Benchmark CJD – Birmingham, AL (Chairman) Susan McDaniel - Bill Luke CJD – Phoenix, AZ Alan Yancey - Hayes CDJ - Alto, GA Ed Lueras - Perkins Mtr. Co. - Colorado Springs, CO Kent Cogswell - Jack Phelan CDJR - Countryside. IL

OEConnec on/Snap On

Dealer Tire

Dan Hu on - Tom O’Brien CJD – Greenwood, IN (Chairman) Paul Allred - Stateline CJD – Fort Mill, SC Steve Hofer - Park CJ – Burnsville, MN Robert Chatwin - Larry Miller Auto - Sandy, UT Marvin Windham - Benchmark CJD – Birmingham, AL

Susan McDaniel - Bill Luke CJD – Phoenix, AZ (Chairwoman) Tom Kellogg - Ziegler Auto Group - Kalamazoo, MI Joe McBeth - Dallas DCJ – Dallas, TX Robert Chatwin - Larry Miller Auto - Sandy, UT Cody Eckhardt - Larry Miller Auto - Sandy, UT Marvin Windham - Benchmark CJD – Birmingham, AL (ALT)

UPS

AER

Paul Allred - Stateline CJD – Fort Mill, SC (Chairman) Marvin Windham - Benchmark CJD – Birmingham, AL Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Ma Jarvis - Bald Hill DCJR - Warwick, RI

Mike Mulkins - Go Chrysler Jeep West - Golden, CO (Chariman) Glen Hojnacki - Milosch’s Palace CJD – Lake Orion, MI Josh Gouldsmith - Gladstone DCJ - Gladstone, MO J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT Steve Hofer - Park CJ – Burnsville, MN

Katzkin

Elite Extra

Mike Gerber - Rairdon CDJ - Kirkland, WA (Chairman) Louis Osuna - Huffines CJD - Lewisville, TX Dan Delisle - Golling CDJ - Bloomfield Hills, MI Mike Mulkins - Go Chrysler Jeep West - Golden, CO

Rick Monteiro - Jack Powell CJD – Escondido, CA (Chairman) Joe McBeth - Dallas DCJ – Dallas, TX J.D. Ipsen - Ken Garff West Valley CDJR - W.Valley City, UT Larry Morris - Fred Beans Parts - Doylestown, PA

KIS/Alpine Louis Osuna - Huffines CJD - Lewisville, TX (Chairman) Paul Allred - Stateline CJD – Fort Mill, SC Mike Opperman - Baxter CJD - Omaha, NE Casey Brown - Autona on CDJ - Katy, TX

Mopar Masters Guild Magazine