Mopar Masters Guild Magazine 2018 NADA Edition

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Leaders in the sale of quality Mopar Parts.

MMG Meets for 26th Annual NADA Event in Las Vegas

March - April 2018

Also In This Issue From the Desk of MMG President Susan McDaniel ............. 2-3 MMG Meets in Las Vegas for 26th Annual Event..........................4-42 MMG Supporting Vendors .........28-29 First Time Participant, Long Time Fan of the FCA Service & Parts Manager’s 20 Group.....................43-46 The View from My Office...........47-49 Autobody News ...................................50 Reynolds & Reynolds ...............51 & 56 UPS .................................................52-54 AER Manufacturing ...........................55 Elite Extra ...........................................57 10 Missions Media .............................58 Katzkin Leather ..................................59 Snap-On Business Solutions .............60 OEConnection .....................................61 CDK Global ...................................62-63 Rousseau Storage ...............................64 Mopar Masters Guild Annual Meeting Mixes Business with Fun ..................65 If You’re Losing Your Donkey... Read This! ......................................66-67 NORTHEAST 2018 Panel Shares Tips to “Take Back Your Business” ...68-69 2018 MMG Officers/Committees ..70

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

AND SO IT BEGINS Hello Everyone, I would like to thank Each and every one of you who joined us in Las Vegas March 19th -24th. It was a long, but VERY produc ve week. We kicked it off with another fantas c 20 Group hosted by Mark Beaton and Jen Short. We could not ask for two be er moderators and friends. We had a lot of great conversa ons and there was a whole lot of powerful thinking going on in that room…you should have seen the smoke! We also had the opportunity to meet some really nice folks from Cu er CDJRF in Honolulu, Hawaii. As always, I would like to say THANK YOU to our suppor ng vendors. We all really enjoyed the presenta ons and learning about the new programs you all have to offer. These rela onships are priceless. So many mes throughout the year, we never hesitate to pick up the phone or send an email with a ques on or concern or to share an idea. Our partnerships are such a great strength in our businesses. Our MMG mee ngs began on Wednesday and we voted new officers into our guild. •

President – Susan McDaniel – Bill Luke Chrysler Jeep Dodge

Vice President – Joe McBeth – Dallas Dodge

Treasurer – Don Cushing – Bald Hill Dodge Chrysler Jeep

Secretary – Mike Opperman – Baxter Auto Group

I am really happy to have Joe, Don, and Mike as officers. I know they are all going to do a wonderful job for our guild. They all have great strength, exper se and experience and we are on a roll to make this guild be er and stronger than EVER. Our key will be COMMUNICATION. I see an excitement in our guild that I have never seen before. If you are not already a member, please contact me so you can be a part of this! We covered some great topics over our week together. Dan Hu on lead us in our discussion regarding Wi-Advisor, Cody Eckhardt lead the way with recalls and CEI, Derek Johnson with res and Randy Rogers with phones. These very strong managers did a fantas c job communica ng their knowledge and answering ques ons from the group. It was amazing how many problems were solved and ideas that were born in these conversa ons. It was also nice to have three service managers guiding us through these topics. On Thursday, we were joined by John Fox – Head of Mopar Sales and Product Development, Ryan Maguire – Sr. Manager-Mopar Sales & Field Opera ons, and Skip Olson – Sales Repor ng & Analy cs. Continued on Page 3

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Continued from Page 2 We had some great discussions regarding res, ba eries, accessories and Dealer Rewards. We truly appreciate the partnership and we all agree that we will be a much stronger force moving forward. It takes many strengths to make a great team and the sharing of knowledge and exper se, views and sound logic from both sides will only create SUCCESS. The ladies in our group had a mesmerizing brunch at the Hexx on Thursday morning. Jamie Hu on did a wonderful job bringing everyone together and making sure that the new members felt welcome. I always love hearing about these brunches on Thursday evening. Everyone is so excited telling about their experiences and the new people they have met. Many long las ng friendships have been made at these events, for sure. On Thursday evening, we were off to Drai’s A er Hours at the Cromwell for our Big Event. We had over 100 guests in a endance. This is always a great way for our members, guests, vendors and friends from FCA to relax, connect, network and create new business partnerships…and DANCE! I would like to give a big THANK YOU to Jill Vance from Avenue Event Group for coordina ng all of this. As always, she knocked herself out making sure that every li le detail was absolutely PERFECT. Once again, she knocked our socks off. I am looking forward to two more years serving this guild. It has been an honor to be in the presence of so many great minds. Moving forward, I would like to see the guild grow even bigger and stronger and share even more experiences, ideas and informa on. And so it begins. Your President,

Susan McDaniel Susan McDaniel susan@billluke.com 602.336.1557

“Wisdom Begins In Wonder” -Socrates

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Mopar Masters Guild Meets at NADA 2018 in Las Vegas Top Dealer Service & Parts Managers Convene for 26th Annual Meeting

Mopar Masters Guild members and their guests began arriving throughout the day on Tuesday. Once we were all se led in, later that evening, we met in the lobby of our hotel where we congregated and cha ed with friends and family, catching up on what been going on during the past year, sharing photos and conversa on. Our MMG Welcome Recep on was held at the Moon Nightclub at the top of the Palms Hotel & Casino. What an outstanding venue! We enjoyed the usual banter of friends and guests with a wonderful buet meal. The view of Las Vegas was beau ful from the outside deck and we were treated to a retractable roof opening during our dinner. We’ll let the pictures do the talking.

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Day 1 – Wednesday March 21st The message was clear. With ever-changing technology and the focus spotlighted on customer reten on, communica on was at the very top of the list as Mopar Masters Guild President Susan McDaniel addressed parts and service managers from around the country at the opening of the 26th Annual Mee ng of the Mopar Masters Guild.

McDaniel covered our agenda for the next few days and we then moved right into introduc ons. A endees for this event were:  Don

Cushing

Bald Hill DCJR

 Gerry

Oakes

Baxter Auto

 Mike

Opperman

Baxter Auto

 Marvin

Windham

Benchmark CDJR

 Shane

Birdyshaw

Benchmark CDJR

 Susan

McDaniel

Bill Luke CJDR

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Continued from Page 10  Jim

Jaeger

Bosak Motors of Merrillville

 Tony

Bailey

Bosak Motors of Merrillville

 Eric

Avondet

Brunswick Auto Mart

 Carl

Kellums

Brunswick Auto Mart

 Ted

Hawkins

Cerritos Dodge

 Rick

Stewart

Commonwealth DR

 Derek

Johnson

Dallas Dodge

 Joe

Mcbeth

Dallas Dodge

 Phil

Krueger

Dependable Dodge

 Dean

Taylor

Dependable Dodge

 Bob

Wi g

Ganley CDJR

 Josh

Gouldsmith

Gladstone Dodge

 Chris

Brodeur

Glenn E. Thomas Co.

 Tom

Schelonka

Griffin Auto Group

 Alan

Yancey

Hayes CJD

 Robert

Brown

Hendrick Dodge

 Randy

Rogers

Huffines CJD Plano

 Kent

Cogswell

Jack Phelan CJD

 Rick

Monteiro

Jack Powell CJDR

 Gary

Block

Jack Powell CJDR

 Robert

Chatwin

Larry Miller Auto

 Cody

Eckhardt

Larry Miller Auto

 Glenn

Hojnacki

Milosch’s Palace CJDR

 Tom

Saigh

Milosch’s Palace CJDR

 Tom

Watson

(Re red)

 Rick

Cutaia

Rick Hendrick DCJR

 Paul

Allred

Stateline CJDR

 Dan

Hu on

Tom O’Brien Auto

 Tim

Miller

Tom O’Brien Auto

 Steve

Anderson

Tonkin Parts Center

 Ken

Kremer

Zimmer CJ

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Continued from Page 11 A er the introduc ons, we were presented with the Secretary’s Report by Don Cushing, followed by the Treasurer’s Report presented by Susan. Susan has been our Treasurer for the past few months filling a dual role un l our elec ons. A big “thank you” to Susan for the great job she has done keeping the finances safe and secure and the informa on flowing by conduc ng numerous emails and facilita ng many conference calls besides the task of running the opera ons of the MMG. Mo ons were made to accept each report and they were unanimously accepted. We then moved into talks concerning our Suppor ng Vendors and FCA/Mopar with ideas and sugges ons we hoped could be discussed to grow our lines of communica on even further, strengthening partnerships and effec vely helping the most important people, our dealership customers! Now, of course, our usual disclaimer! As we have talked about many, many mes during the existence of the Mopar Masters Guild, any informaon that is obtained via the newsle er will not offer a complete and concise picture of what went on at our mee ngs. We stress the importance of a ending these mee ngs and invite everyone who meets the Mopar Masters Club criteria to join the Mopar Masters Guild, a end these mee ngs and enjoy the wealth of knowledge and informa on that is presented and shared. Our coverage of Vendor presenta ons, Mopar Execuves’ presenta ons and dialogue will only lightly touch upon what was presented. We then arrived at our new Elec on of Officers process. Susan had sent out emails to all paid members asking for nomina ons for Guild Officers. The process was very robust as the guild received several nomina ons.

Nominated for Office: •

President •

Vice President • Joe McBeth • Cody Eckhardt •

Mike Opperman

Secretary • Cody Eckhardt •

Susan McDaniel (unopposed)

Mike Opperman

Treasurer • Glenn Hojnacki •

Don Cushing

Each nominated candidate was given an opportunity to present their pla orm to a ending members before we con nued to the wri en vote. Absentee votes for members who could not a end were tabulated also. Continued on Page 13

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Continued from Page 12 We are pleased to announce the results of the 2018 Mopar Masters Guild Elec on:    

President - Susan McDaniel - Bill Luke CJD – Phoenix, AZ Vice President - Joe McBeth - Dallas DCJ – Dallas, TX Treasurer - Don Cushing - Bald Hill DCJR - Warwick, RI Secretary - Mike Opperman - Baxter CJD - Omaha, NE

Congratula ons to the Guild Officers voted to serve! “It’s been an honor to serve this guild and be your President over the past two years,” says McDaniel. “I’ve been ac ve with this guild for the past 15 years and in every one of these mee ngs that we a end, I think we all take away something to bring back to our dealership. Everyone that we meet here are from different markets all around the country so there are many different ideas. Whether it’s from our mee ngs, the short breaks, the casual connec ons while grabbing a bite later during our a er-hour guild events, there are always discussions on how we each handle certain business concerns. Watching this guild grow has been an awesome experience. It’s easy to get stressed out at work but knowing that you can pick up the phone at any me and reach out to any guild member for guidance or an answer is a great feeling,” she con nued. Continued on Page 14

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Continued from Page 13 We then began our discussion of Retail Topics that were sent out to everyone before our mee ngs. Susan preselected individuals to discuss these topics with a group leader. This is how it looked:

WI-ADVISOR – DAN HUTTON  What is the biggest advantage to using Wi-Advisor?  Biggest disadvantage? o Tim Miller o Steve Anderson o Rick Cutaia o Rick Stewart o Josh Gouldsmith

RECALLS – GARY BLOCK  What is your Service Department doing special as far as handling recall customers?  What is your Parts Department doing special to ensure customers are being handled as efficiently as possible? o Rick Monteiro o Robbie Brown o Tony Bailey o Jim Jaeger o Phil Krueger o Dean Taylor o Ted Hawkins

CEI – CODY ECKHARDT  Name one thing your Service Department has done to improve CEI  What can your Parts Department do to help service improve CEI o Robert Chatwin o Chris Brodeur o Eric Avondet o Carl Kellums o Glenn Hojnaki o Tom Saigh

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TIRES – DEREK JOHNSON  What is the best thing you have found to mo vate your Service Advisors to sell res  What is your Parts Department doing to push re sales? o Joe McBeth o Shane Birdyshaw o Marvin Windham o Gerry Oakes o Mike Opperman o Don Cushing

PHONES – RANDY ROGERS  What type of system for answering phones is your Service Department currently using?  IE: recep onist, advisors, BDC  Is your store ac vely taking on-line appointments? o Kent Cogswell o Alan Yancey o Bob Wi g o Ken Kremer Discussions ensued with many great ideas, problems/solu ons, implementa on and measured results. Also discussed were market surveys, educa ng employees, educa ng customers, pay plans and team building. At the risk of repe veness, THIS is some of the valuable informa on that you gain from a ending these mee ngs. The best part of this is that you can ques on how these dealers accomplish what they are successful at doing and allows you an opportunity to shape their idea to fit your needs or your geographic area.

A er a short break we then moved into our Tier II Suppor ng Vendor Fair.

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Continued from Page 15 Par cipa ng in this year’s Vendor Fair were:

Corporate Billing LLC Sam Thompson – Account Execu ve Jeff Leavi – VP of Sales

Rousseau Storage

Benoit Toussaint – Sales Director – Rousseau Storage

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10 Missions Media Chris Messer – Publisher FenderBender Ratchet+Wrench Fixed Ops Business

Katzkin Leather Doug Johnson - Director OEM Development

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Autobody News Barbara Davies – Co-Owner General Manager

Elite Extra

Ross Kleiner V.P. Strategic Accounts

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Dealer Tire

Todd Schreiber Dealer Group/RTSA Manager Paul Flack Director of Sales - West

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A er our Vendor Fair and lunch, we began our Tier 1 Vendor Presenta ons. Continued on Page 21

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OEConnec on

Presen ng to our group was one of our long me (founding) Suppor ng Vendors, OEConnec on. OEC was represented by:  Gary Coveyou, Na onal Accounts. Gary caught us up on what’s been happening with OEConnec on and then gave us a presenta on. Gary covered these items:  Link IQ Repor ng  CollisionLink Dashboard  RepairLink Dashboard  DMS Dashboard  Repor ng Wizard  FCA Rela onship  OEC Product Support  Why RepairLink Marketplace Growth  Shop Development Support Gary followed all of this by fielding ques ons about the product from a ending members. Continued on Page 22

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CDK Global

Our next Suppor ng Vendor was another long me ini al partner, CDK Global represented by:  David Mitchell – Head of Manufacturer Solu ons – CDK Global  Kim Saylor – Product Marke ng Manager – CDK Global

Kim covered many new enhancements and new addi ons to their product:  Copy Parts Setups  Parts Fees  Credit Overrides o Fastlane o Alerts  SOR Updates  Partscan Credit Memo Updates Continued on Page 23

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Continued from Page 22 Addi onal Enhancements:  Parts Quan ty  Sale Calcula on  RPFR – Repair Order Fill Rate Report  PNW – Post Non-Warranty  Bigger Windows Kim and David then opened up the floor for ques ons.

AER Sales Moving on with our Tier 1 Vendor Presenta ons, we welcomed AER Sales represented by:  David Carroll – Na onal Program Manager David has been with the Masters group for many years with a former Vendor and supporter of the guild. Continued on Page 24

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Continued from Page 23 Covered in his presenta on was:  31 Dedicated “Mopar Only” Sales Team Members  Dealer Training Modules for Outside Sales, Wholesale & Retail  Joint Dealer IRF/Fleet Sales Calls  Over 35,600 IRF/Fleet sales calls conducted in 2017  Building Brand Awareness  Dealer Stocking Incen ves  Availability – Inventory Levels have grown from $12M in Jan 2017 to $25M Current  Improved Distribu on with increased “same-day” delivery (50-mile radius of facing warehouse)  Incen ve Programs  Purchase Incen ves We heard a lot of input from dealers who have been using AER’s Outside Sales Reps to assist with their Powertrain Business Plan. Plenty of sugges ons, ideas and solu ons were discussed with Dave.

Snap-On Business Solu ons Another great partner and Tier 1 Vendor, Snap-On Business Solu ons was represented by:  Keith Pople – Manager, Global Accounts Keith gave us a bit of background and dove right into his presenta on. Covered by Keith:  Business Update o Tools & Equipment Program o A ermarket Recall Program  Electronic Parts Catalog  Advantages over StarParts o Faster Load Time o Reverse look up from parts on pick list o Web, DVD and USB Solu ons

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o Q2 Accessories o Q2 Enhanced Filtering  Expresslane Dashboard  Tech View  Life me Ba ery Program  Ecommerce Solu ons

A er covering these topics, Keith fielded ques ons and there were some great conversa ons concerning the updates and new product solu ons.

Our first day was complete and we adjourned for the day. Members were free to explore Las Vegas on this evening. We hope you enjoy a few of the pictures from Las Vegas.

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Day 2 – Thursday March 22nd On this day, the ladies of the group enjoyed a planned brunch at The Hexx, located in the Paris Hotel which is located in the heart of the Las Vegas strip and has spectacular views of the Bellagio Fountain! We understand it was quite a hit and have a couple of pictures to solidify that statement. Glad you ladies had a great me!

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Our Supporting Vendors: Support those who support you.

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Continued from Page 27 A er an early breakfast, Mopar Masters members got right back to business discussing our panel topics. Tire and ba eries were at the forefront of discussions before we began Day 2 of our Tier 1 Suppor ng Vendors.

UPS Ups was represented by:  Tim Quinne e, Director of Sales – Automo ve & Industrial Sector  Darrin Urbytes, Corporate Segment Marke ng - UPS Long me friend and associate from UPS, Tim is well known in the dealer circle. Tim & UPS have been one of the guild’s Suppor ng Vendors for many years.

Tim then introduced Darrin Urbytes who began by giving us informa on how to sign up for UPS’ newsle er, Longitudes. This is a free newsle er that will keep you updated on what’s going on in the shipping world. Click on the following link and sign up for this free informa on: h ps://longitudes.ups.com Continued on Page 31

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Continued from Page 30 Darrin then covered the following subjects:  UPS Pulse of the Online Shopper Study  The Evolu on of Customer Engagement  Single Channel  Mul -Channel  Omni-Channel  Converged Customer  Maximizing Omni-Channel Opportuni es  Benefits of Direct-to-consumer Strategy Tim and Darrin then fielded ques ons before going on to the next subject. Darrin then presented:  UPS Ground with Freight Pricing  UPS offers customers the ability to ship ground shipments ranging from small, lightweight single piece shipments, up to full truckloads  Can save you money on mul ple package shipments  Delivers a cost-effec ve solu on for mul ple-package shipments  Uses the reliable UPS Ground Network while providing an LTL rate structure to make pricing comparisons easy  Eliminates pallets, reducing shipment weight and costs  Includes standard package delivery features, free of charge, such as guaranteed day-definite delivery and inside delivery  UPS is the first and only package carrier to offer ground delivery service using Freight LTL pricing

More interest in these new programs allowed more input and discussions from the guild members.

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Reynolds & Reynolds Up next, another long me guild Suppor ng Vendor, Reynolds & Reynolds. R&R was represented by:  Jason Sideris – Director – Product Planning  Jeffery Adams – Product Planning Manager

Jason gave a brief opening talk on the many years he’s been involved with the MMG and some of Reynolds’ new products before turning it over to Mr. Adams.

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Continued from Page 32 Some of what Jeffery covered:  E-work flow  Retail Management System  Be er Branding  Consumer Reach Plus  Tex ng within Reynolds & Reynolds DMS  Be er Internal Communica ons  Be er Tracking  Online transac on journal  Parts Transac on Log  Parts Retail Mark-up Op on  Service Touch  Service Snap

Jason and Jeffery then each fielded ques ons about R&R programs.

Mopar Execu ves Mee ng with Masters Guild The interac on with Execu ves from Mopar is one of the reasons that Mopar Masters Guild members a end this mee ng. Our coverage with Mopar here are just some of the highlights of our interac on with our Execuve guests since we feel that par cipa on is needed and welcomed at this mee ng to enjoy the full benefit of what is offered. Represen ng Mopar were:  John Fox, Head of Mopar Sales & Product Development at FCA  Ryan Maguire - Sr. Manager - Mopar Sales & Field Opera ons, Mopar Brand  Skip Olson - Sr. Manager - Analy cs, Mopar Brand Continued on Page 34

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Continued from Page 32 Mr. Fox introduced himself to the guild and gave us a brief business bio. John spent the last 4 years in FCA’s Training Group before assuming his current posi on. “Some things that I am proud of we brought from the training side; we didn’t just focus on curriculum. The way I see it is we need to do a be er job to help you and your dealers a ract top talent. For us to compete, I think, we need to find that top talent, people (poten al candidates) are not aware of the careers and the earnings that are available”, says Fox. “We will con nue to grow our programs such as Mopar CAP and Degrees@Work to a ract technicians. So fast forward 45 days and I’m now in this posi on and I’m excited to be here. I look forward to listening to your conversa on today, your feedback, because my roots are based on the retail side,” he con nued.

With that, Mr. Fox turned it over to Ryan Maguire. Ryan comes from the retail side as well, working in a service department as a technician for a few years. Ryan tell us, “I enjoyed being in the service department so much that I went back to school for an Automo ve Management Degree. I started working with Chrysler in 2010 as an area manager with an opportunity at headquarters working in the sales organiza on. I just had this natural draw to the service and parts side of the business, so I had an opportunity to return to Mopar and I’ve spent the last 2 ½ years as the Field Opera ons Manager for the Northeast Business Center and now this excellent opportunity to return to headquarters in my current Field Opera ons roles. I’m looking forward to learning a lot from your group today. My goal here is to make sure our field organiza on is out there helping all of you grow your business the right way, and I’ve got some ques ons to all of you to get some feedback on how we can improve and how we can go a er some of our mutual goals going forward.”

We then took a break for lunch and our guests from Mopar joined us. Returning to our conference room, long me friend and Mopar Manager Skip Olson took to the front of the room. Continued on Page 33

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Skip then covered many subjects including:  BC Retail/Wholesale YoY Performance 2017  BC Retail/Customer Pay RO YoY Performance 2017  Age Profile of FCA Vehicles in Opera on  Dealer Outbound Sales and Average Margins  Sales – FCA & A ermarket  Service, Parts and Body Revenue & Net Profit  Service, Parts Revenue & Net Profit  Customer Experience  Dealer Rewards  Dealer Sales vs. Dealer Rewards Payments  Q3 Metric Updates  Consolida on of Oil Metrics  Wi-Advisor Metric  Implementa on Timing – July 2017  Saturday & Total Hours These subjects were followed by a ques ons period with John, Ryan and Skip all involved with explaining processes. There was some great banter and many ideas within the group. Following this, our guests from Mopar con nued with:  Wholesale Cer fica on o Current Program – Process Based o New Program – Sales Based o (Changes can be seen on Dealer Connect)  Tire Program update o New Distribu on Model o Tire Status Update & Availability o Continued on Page 36

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Continued from Page 35 Further discussion on these subjects filled out the rest of the me we had with our guests.

The Mopar Masters Guild would once again like to thank John Fox, Ryan Maguire and Skip Olson for taking valuable me from their busy schedules to present to and discuss business with our group. We look forward to our con nued mee ngs with FCA/Mopar in 2018 and beyond.

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Continued from Page 36 Our mee ng was adjourned so that everyone could prepare for our Annual Mopar Masters Guild Cocktail Recep on.

Mopar Masters Guild Annual Cocktail Recep on This event, our annual Mopar Masters Guild Cocktail Recep on has always been the one night during our mee ngs that everyone looks forward to. Each year the guild makes an effort to secure a venue that everyone will not only talk about but allows the comfort of being away from daily business which allows mee ng with peers, industry execu ves and suppor ng vendors in a relaxed atmosphere. This year’s event was held at Drai’s A er Hours. Drai’s A er Hours has been the ul mate late-night, see-and-be-seen party des na on for more than two decades. Located in the basement of The Cromwell, this hidden gem and underground lounge is home to more than 13,000 sq. feet of posh offerings, including four dance floors featuring high-energy dance and hip-hop formats, two full service bars, 55 bo le service tables, vintage mansion-inspired décor and much more. We hope you enjoy the pictures from our Cocktail Recep on

Continued on Page 38

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March - April 2018

Continued from Page 41

Day 3 - Friday March 23rd Friday was a day for members to visit the NADA Floor. For those who didn’t make NADA a whole day event, they explored the Las Vegas scene.

Day 4 – Saturday March 24th

A er another early breakfast, Mopar Masters members got right back to business discussing our panel topics. On this day, besides our con nuing panel topics, we would be discussing:  NADA 2019  Vendor Commi ees  Execu ve Commi ees  Vendor Visits  New Suppor ng Vendors  Increased Membership  Customer Surveys

MMG President Susan McDaniel then made a mo on to adjourn and this concluded the 26th Annual Mee ng of the Mopar Masters Guild. Thank you all for your a endance and we look forward to seeing more of you in San Francisco in 2019.

Mopar Masters Guild Magazine


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First time participant, longtime fan of the FCA Service & Parts 20 Group Arriving in Las Vegas on Sunday March 18th I was an cipa ng the upcoming week spending my usual me taking pictures and video and wri ng ar cles for the Mopar Masters Guild. Since aligning myself with the MMG in 1998, through my former boss, Ernie Wennerstrom, I have met many great people and formed some wonderful rela onships with them. I have a ended many, many yearly guild mee ngs working for the MMG and have sat in on some knowledgeable mee ngs with the FCA 20 Group. This year, I would be filling in for my current Parts Director, Ma Jarvis, as a par cipant in the FCA 20 Group. For me, even a er all my years in the automo ve business, this was a very exci ng me. To get to listen and poten ally share ideas with some of the BEST parts & service minds in the industry was, well, just mind blowing! We began on Monday morning bright and early with the guidance of Jen Short, Managing Partner, Chief Informa on Officer at MBA Dealer Services. Jen was temporarily facilita ng the Group un l Mark Beaton, Founder, MBA Dealer Services arrived later in that day. Mark & Jen have facilitated many of the FCA 20 Groups for the Mopar Masters through the years and are two of the most professional people you will ever meet! Jen led the group through formal introduc ons and it was amazing to see how many different geographical areas of the country were represented! From myself from li le ‘ol Rhode Island to Rick Monteiro in California (and WOW! Do they have some odd laws in that State?) And from even further off the California coast was the group from Cu er DCJRF, Honolulu, Hawaii and Cu er CJD of Pearl City, Hawaii. (Sounds like a great place for a future FCA 20 Group!) Representa ves from those dealers were Davyn Nishita, Mel Nishita, Pii Kahala and Christel Freitas. We then moved into the structured por on of the 20 Group: Once around the room – Please tell us one opportunity you would like to improve upon in your department (Be prepared to discuss) Fall 2017 Member Commitment Area Financial Composite Review Continued on Page 44

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Continued from Page 43 Please review your dealership’s Composite before our mee ng and be prepared to discuss your numbers with the group! •

Case studies of different dealerships service & parts financials

Set individual objec ves

At this point, Mark Beaton arrived, and I’ve been given permission to post the following picture!

Jen then con nued, covering: iEXAM •

Profit opportuni es review

Employee reten on review

A er our break for lunch, Mark Beaton led us on the next part of our class. UPDATES & NEWS •

Industry News

FCA Performance Ins tute Updates

20 Group Updates & News

Con nua on of Composite Review BEST PRACTICE COMPETITION It is NOT mandatory, but each DEALERSHIP is encouraged to bring ONE fixed opera ons best prac ce idea to present and share with the mee ng members. For me, this was one of the highlights. Listening to all the ideas being presented and how they work for each dealership. Continued on Page 45

Mopar Masters Guild Magazine


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Continued from Page 44 While some of these ideas may not work for you, it is always possible to use the ideas as a founda on for you to build upon to mold an idea to your needs. All you need is the base point, and you take it from there. Great stuff! I was honored to present an idea concerning the Groove Glove that we use at Bald Hill DCJR to help sell more res. I never imagined that the idea would be good enough to capture 3rd Place! Pre y cool!

The winners were:  Paul Allred (1st Place Tie)  Cody Eckhardt (1st Place Tie)  Don Cushing (3rd Place)

This concluded our first day.

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March - April 2018

Continued from Page 45 Day 2 A er our breakfast we all converged back in our mee ng room. On this final day Mark gave us a presenta on on Service Retail Selling covering:  Vehicle Sales Forecasts o GM – Ford – Fiat Chrysler – Toyota – Nissan Honda – VW – Hyundai/Kia – Subaru  Who is the main person responsible for selling services?  What keeps advisors from doing their job?  Problems, Solu ons and the influence they can have on CEI  Coach your advisors and be diligent  What advisors need to know about selling to Women Customers  Different types of training  Phones and how they influence appointments and CEI  Gree ng the customer, wiAdvisor, and the Walkaround  Why service customers don’t buy  How to get them to sell or want to?  Se ng them up for success SET INDIVIDUAL / GROUP OBJECTIVES  Commitment to two areas to improve by fall 2018 mee ng  Group objec ves for next mee ng Our mee ng was adjourned and most of the a endees joined the Mopar Masters Guild’s Welcome Recep on that evening which was held at the Moon at the Top of the Palms Casino. From my point of view, the FCA Service & Parts 20 Group is a “MUST ATTEND” class that everyone must experience. The knowledge and problem solving that occurs here is priceless. Respec ully submi ed,

Don Cushing Bald Hill DCJR – Warwick, RI MMG Treasurer

Mopar Masters Guild Magazine


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The View From My Office

With Kat Monteiro

This year is flying by. Seems like we just celebrated the New Year and here it is already mid April. Spring is here, my favorite me of the year. I know some of you are s ll having stormy and snowy weather but here in Southern California it is beau ful. All the flowers are blooming and our highways are bordered by beau ful yellows and purples. Brings a smile to my face and a calm to my soul. Things are busier than ever here at Jack Powell CDJR and I am s ll very much enjoying my outside sales posi on. Being out in the field visi ng our customers and helping them with any problems they might have, or hearing what a great job our parts advisors and drivers are doing, really makes my days go by quickly. Building rela onships and giving them a good sounding board is really proving to be right up my alley, I really enjoy it. The customers are ge ng used to me stopping by now and always seem happy to see me. I am trying to be consistent and prove I am a reliable source for them and that they can count on me, on us. Now, if I can just convince more of the local independent repair shops to buy everything OEM I’ll consider myself successful! I dedicate 2 days a month to our AER Mopar Powertrain Rep, Sherree Dye (who I introduced all of you to in a past ar cle) to go out and visit IRFs and promote Mopar Powertrain. We have been successful but there is s ll a lot of convincing to do that buying OE is the best way to go. Much of this is just convincing shops that the dealer is their friend and that we will sell them parts at a fair price and take good care of them; that our OE parts fit correctly have a great warranty, and are made with be er quality and performance. And in many cases, we are at or close to, those a ermarket prices. So this is my challenge! I just keep at day by day. Last month was NADA in Las Vegas. It was kind of a weird me with many of our Guild Family losing loved ones in the month of March; making some delay their trip into Vegas or cancel all together. My condolences go out to everyone who had a loss. Our group was hit hard in the month of March. Me included. We lost my beau ful cousin Jodi who was only 42 with so much more life to live. For us we ended up leaving Vegas early Thursday morning, meaning we missed the last 3 days and our Guild party - which from pictures I saw looked like an amazing good me!! It was a great week in Vegas! Always so good to see everyone, hanging out, catching up. Seems like we can talk all day and night and s ll have so much to talk about the next day!! I feel so blessed to have made such great connec ons with our Mopar Guild Family. Our week started off Sunday morning at the California Speedway in Fontana for the NASCAR race! A er the race we drove to Vegas. Monday morning the meetings started for the guys and the fun started for us ladies! Time to explore. Jamie Hu on, Amy Eckhardt and myself headed out to the far end of town to the Neon Museum. This is a place that displays the old Vegas neon signs. It was really amazing! We had a great tour guide who walked us through and gave us history on the different signs - their meanings, how they en ced people in, and how they were made. It was very interes ng. Continued on Page 48

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Tuesday morning we headed over to the Mirage for a great breakfast at The Pantry. We walked back to our hotel and took in all the sites at Caesars Palace and the gardens at the Bellagio.

Tuesday night was our welcome recep on at The Moon. It was so good to see everyone and catch up in an amazing venue with a great view - even from the bathroom!!

Continued on Page 49

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Continued from Page 48 On Wednesday I took Kathy Stewart and Barbara & Anna Allred 40 miles north of Vegas to a place called Valley of Fire. It is the most beau ful drive through hills and canyons of red rock. We walked a trail called the Mouse Tank that took us through canyons where you can s ll see ancient petroglyphs and at the end there is a rock forma on that holds water. A place for the ancient people and animals to get a drink in the middle of the desert. It was really cool. I want to give a shout out to Dave Carroll from AER/Fred Jones and say thank you for taking Rick, Susan McDaniel and myself to dinner on Wednesday night. It was a nice dinner with good conversa on. Thursday morning had us leaving Vegas for an 11 hour drive to northern California. I sure missed everyone, but I hear everyone had a good rest of the week and the Guild closed out another successful NADA mee ng.

Every year I become more and more thankful for the friendships and opportuni es that being part of the Mopar Masters Guild has brought to our lives for the past 25 years. This year was an elec on year for the Guild. I want to give a big shout out to the elected officers and wish them the best of luck in the next 2 years. •

Susan M Daniel - President - Bill Luke CDJR - Phoenix, AZ (she did such a great job for the last 2 years that she was elected for a second term)

Joe McBeth - Vice President - Dallas Dodge - Dallas, TX

Don Cushing - Treasurer - Bald Hill CDJR - Warwick, RI

Mike Opperman - Secretary - Baxter CDJR - Omaha, NE

There are others on commi ees and the on the execu ve commi ee. Good luck to all of you. I am sure it will be another great year. And before you know it we will be planning another great MMG Mee ng at NADA in San Francisco!! Happy trails to you un l we meet again….

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


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This is the fourth in an installment based on Routes to the Future.

www.ups.com/future

To Your Doorstep, Faster than the Speed of Sound By Bala Ganesh, Senior Director of Marketing at UPS

Autonomous vehicles dominate the headlines, but they’re just one of the many futuristic technologies that could be used to make deliveries in coming decades. Indeed, the logistics landscape of the future may barely resemble what we see today.

Image courtesy of NEXT Future Transportation

Mopar Masters Guild Magazine

Here’s a look – fanciful we admit – at some of the cutting-edge technologies we could use one day to move goods faster, safer – and greener.


Leaders in the Sale of Quality Mopar Parts

Hyperloop

Electromagnetic Railgun

This vacuum-tube transportation network that sounds like something out of a science-fiction movie, would move people and packages through low-pressure steel tubes in a capsule riding on a cushion of air. As envisioned by entrepreneur Elon Musk – and the numerous companies intent on implementing a version of his blueprint – the tubes would run at least partially on solar power.

Unveiled by the U.S. Navy in February, this could also transform the logistics industry. The tool uses electromagnetic energy to fire projectiles up to 4,500 miles per hour and can reach targets more than 100 miles away. The projectile is launched up to Mach 6 – more than six times the speed of sound. The Electromagnetic (EM) Railgun was designed as a weapon of war, but just imagine its potential reach as a delivery device. Instead of UPS flying a jet in the dead of night between Chattanooga and Atlanta, for example, we could shoot a series of bundled packages – equipped with parachutes – and land them in a UPS-owned field.

The Hyperloop could move people from Los Angeles to San Francisco in roughly half an hour. As remarkable as that is, we also should consider the potential of the Hyperloop to revolutionize the delivery of goods. Truth is, packages could travel even faster than people between any two cities. With a cargo-based network, you don’t have to worry as much about acceleration. Packages could move at higher speeds, along winding routes bringing cities closer together. Goods could travel from Jacksonville, Fla. to Los Angeles in just a few hours – connecting two of the nation’s busiest ports, on opposite coasts. With test tracks being constructed, it looks more like when, not if, the Hyperloop is going to be up and running.

53

By 2050, two-thirds of all people will live in a city. Roads will get even more congested, and the demand for goods in megacities will further test already strained transportation networks. Cities like New York, New Delhi, Shanghai and London could become impassable in 30 years, forcing logisticians to rethink how they transport goods to the final stop.

Unmanned Aerial Vehicles At UPS, we’ve been testing drones (link to press release and assets) for their ability to deliver to hard-to-reach places. During the day, delivery workers – or even robots – would whisk these packages to their recipients using an array of small, green friendly vehicles. Think electric mopeds, golf carts, Segways and other lightweight vehicles, such as UPS’s three-wheeled Cargo Cruiser, a pedal-assisted electric bike. For now, our well-known brown package car driver isn’t going anywhere. But with the aid of such technologies – and some that are yet to be thought of - people will be able to get what they want whenever they want it – and this ever-shrinking world would become more sustainable.

© 2017 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. 8/17

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March - April 2018

UPS Dealer Services Drive Better Performance Receive exclusive MarketCenter dealer discounted pricing on: •

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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.

© 2017 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. 8/17

Mopar Masters Guild Magazine


Leaders in the Sale of Quality Mopar Parts

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AER AND FRED JONES

POWERTRAIN PRODUCT AND SALES TRAINING OPPORTUNITIES. MOPAR POWERTRAIN NETWORK (AER) AER Sales and Manufacturing is the world’s largest engine remanufacturer and is a Tier 1 supplier to FCA US LLC. AER, along with partner Fred Jones, is the national Mopar Powertrain Network with 34 warehouses nationwide, fully stocked with Mopar powertrain products ready to ship to you.

AER OFFERS A TEAM OF 31 DEDICATED SALES SUPPORT SPECIALISTS TO HELP YOU GROW YOUR BUSINESS AND PROVIDE SAME-DAY DELIVERY AND DROP-SHIP CAPABILITY, INCLUDING: » Inventory available locally — save time getting the part to your customer! » 34 warehouse strategically located throughout North America to enable you to sell to national accounts » Hot Shot/drop ship deliver — saves you expense, saves employee resources and frees up your vehicle for other parts deliveries » National core pickup: You can pick the core up, or Mopar Powertrain Network (AER) can pick it up at $100 charge (gas engine or transmission) or $125 charge (diesel engine)

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OUTSIDE SALES REP TRAINING #2 Finding business, overcoming objections, schedule planning and role playing (Prerequisite: Outside Sales Rep Training #1) INSIDE SALES PERSON TRAINING #1 Includes counter personnel (retail and wholesale), focusing on product and competition knowledge, and selling O.E. powertrain

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SERVICE ADVISOR SALES AND PRODUCT TRAINING Product and competition knowledge, and selling O.E. powertrain DRIVERS CLASS For anyone who comes into contact with customers not covered in other classes (30–60 minutes)

KNOWLEDGE IS POWER All training classes are offered at NO COST to you or your employees and meals or snacks are provided. For more information or to schedule one of these courses, contact Bill Taylor, AER National Trainer, at billtaylor@aermfg.com; your local AER or Fred Jones Powertrain Sales representative; your FCA US LLC Area Manager; your FCA US Wholesale Manager; or call (540) 419-4882. Don’t wait to increase your sales and profits! Our classes are meant to be motivational as well as informative! *Note: It is strongly recommended that management attend the Sales Awareness course before sending any employee to any of the other courses listed.

MOPAR POWERTRAIN NETWORK (AER) LOCATIONS

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March - April 2018

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Mopar Masters Guild Magazine

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March - April 2018

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March - April 2018

We’ve Got You Covered! Don’t Risk Losing Parts Sales if the Internet Goes Down. Choose EPC 5 for FCA as your Backup Parts Catalog of Choice. We know the EPC is a critical tool that you and your dealership rely on to drive parts and service revenue, and support your customers. Snap-on’s EPC 5 for FCA is a reliable, low cost EPC that can be installed on a local PC and doesn’t require internet connection. Eliminate the risk of lost sales that may occur due to your current EPC being down during an internet outage. Sign up for one seat of EPC 5 for FCA today as a backup catalog and never lose parts sales again.

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Mopar Masters Guild Magazine


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THERE’S NO “O AND E” IN AFTERMARKET… BUT THERE IS IN TECHNOLOGY. Be the OE source in our technological world OEC® solutions offer your parts department the stability you need in online technology. Our collision, mechanical and ecommerce solutions help improve your OE part sales business. Period. Call 844.340.8842 or Visit OEConnection.com/..(

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March - April 2018

We focus on service. So you can serve your customers better.

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Mopar Masters Guild Magazine


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We focus on your operations.

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You need to keep your service techs, and your bays, busy. We can help.

Customer connected.

Dealer driven.

cdkglobal.com Š 2018 CDK Global, LLC / CDK Global is a registered trademark of CDK Global, LLC. 18-0120

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March - April 2018

Mopar Masters Guild Magazine


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Mopar Masters Guild Annual Meeting Mixes Business With Fun During this year’s NADA Show in Las Vegas, held March 22--25, 35 members of the Mopar Masters Guild (MMG) converged to network, a end mee ngs, elect its officers for 2018 and enjoy a li le fun along the way. MMG President Susan McDaniel was re-elected for another two years, along with several other officers who represent top dealership parts departments na onwide. McDaniel is encouraged by what MMG was able to achieve during the annual four-day mee ng. “When we get together, we’re able to share ideas about best prac ces. That’s invaluable because we can take what we’ve discussed and use it to improve our departments,” said McDaniel, who is the parts director at Bill Luke Dealerships in Phoenix, AZ. “Networking is a huge part of every year’s annual mee ng and this year was surely no excep on.” Mopar is the parts, service and customer care organiza on that supports Fiat Chrysler Automobiles (FCA). Established in 1992, MMG’s mo o is “The exchange of informa on by like-size dealers in a non-compe ve environment.” With the ul mate goal of becoming be er managers in order to deliver the best service to its customers, MMG is always promo ng open communica on. This year, they focused even more intently on the topic. Some of the highlights during the annual mee ng included presenta ons from FCA/Mopar execu ves and suppor ng vendors. “Our vendors play an important role and we are always anxious to meet with them and find out how they can help us as members and as an organiza on,” McDaniel said. “With six er-one and seven er-two vendors on our roster, they make us stronger and more effec ve through their efforts and that’s why we greatly value their par cipa on.” Subjects that MMG members discussed at the mee ng included a wide range of marke ng and efficiency strategies and systems to do a be er job. “We talked about a new re marke ng program that’s designed to sell more res; customer strategies for recalls; the wiADVISOR™ and how to use it to process customers quickly and accurately and how to get more customers to fill out surveys and get be er feedback from them,” McDaniel said. “In addi on, we discovered phone techniques that can be used to more effec vely get back to customers more promptly, especially when departments are busy and backed up. These types of presenta ons foster be er communica on, and that is one of the main advantages of being a member of the MMG.” Another goal that the organiza on discussed at its annual mee ng was a member drive to add 30 ac ve members to the group by the end of the year. “Currently, Don Cushing is working on our database and soon we will be making a big push to build membership,” McDaniel said. “We will reach out to eligible candidates through our members to let them know that joining MMG will benefit them on many levels. It all starts with our members reaching out to their colleagues and associates and ge ng the word out to the right people.” During the mee ng, the following individuals started their two-year terms:  President: Susan McDaniel, Bill Luke CJDR  Vice President: Joe McBeth, Dallas Dodge  Treasurer: Don Cushing, Bald Hill DCJR  Secretary: Mike Opperman, Baxter Auto Group Source: www.autobodynews.com – Wri en by Ed A anasio

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March - April 2018

If You’re Losing Your Donkey in Service ....Read This! By Ed Kovalchick

A male donkey or ass is called a jack, a female a jenny or jennet; a young donkey is a foal. Jack donkeys are o en used to mate with female horses to produce mules; the biological “reciprocal” of a mule, from a stallion and jenny as its parents instead, is called a hinny: Donkey - Wikipedia I open with this impolite sham to get the a en on of those mates suffering from financial fibromyalgia. Too many are not producing the individual department net profit results needed to sustain the opera on. Rather, a losing division is surviving because a neighboring branch is thriving and essen ally paying the loser’s bills - hard to be proud of that amigo. Profit Recipe Yet, producing a reasonable net profit isn’t rocket science, or even earth science as far as that goes. It’s a combina on of a aining target margin structures, employee produc vity, market penetra on, expense controls, and proper staffing. These results of these five vital ingredients make up a successful or not profit recipe, and to complicate it further just mucks the view. And this applies to any typical auto dealership department front and back - and even the pesky rental/leasing ops. Now, here’s the reality when the numbers are in the proverbial tank: The “management history” of a department determines how difficult and how long it will take to structure and successfully conduct the “fix”. Here are a couple actual bodyshop situa ons I have encountered. Case One: A er an analysis of the overall situa on I discovered that two of eight technicians were not producing effec vely, thus the eight-cylinder bodyshop was running on six cylinders, crea ng a substan al produc on deficit of some 25%, which just happens to be the amount of target profit. Also, we had low compression on another cylinder because this cylinder missed a lot of strokes by being late constantly, as well as randomly not showing up (you know who I’m talking about). We managed to rev up the troops by first replacing the malfunc oning cylinder with a high compression insert, then se ng “minimum or else” standards for the remaining two, which suddenly became quite produc ve. The sacrificial piston had sent a powerful message. Beside a few other areas to shore up, this was not a difficult fix and good numbers were generated in a short period. (Sorry for the engine analogy - it just seemed to fit) Case Two: Here, there was a history of marginal to poor management decisions, many determined as shortterm fixes, which then created long-term nega ve consequences. Way over-paid metal techs versus the menial insurance rates, un-analyzed complex processes which caused the need for more support personnel than produc ve ones, li le to no security of parts and supplies, a generous handout of stall space per producer at a monthly expense of over $8,000 per stall limi ng the available staffing areas, li le benefit to the company from the prepper posi on, overly well-paid and too comfy management, infigh ng and unhappy everyone. And to top it all off, a poorly designed facility for the applica on crea ng a mul tude of other issues. Essen ally, the facility would have to be twice-sized to just to pay for the well-paid support clique. Ugh. Continued on Page 67

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Continued from Page 66 Case Three: Yuengling Lager and beer goggles .... Wait, sorry that’s for another ar cle. Binging on change Since we could not locate the reputed magic wand for Case Two, this project took a year to completely reverse. This shop managed to denigrate all five of the vital ingredients in the profit recipe. The good news was that all was fixable, provided there was enough commitment from top management to the difficult decisions that were going to have to be made, and thankfully there was. But this type of improvement need is a series of the old adage: “Change is two steps forward and one step back”, which defines that change creates more potenally difficult situa ons to be dealt with effec vely, and no one knows what those will be un l the adjustment is made. Unfortunately, too many are defeated by the second round of push-backs, a er overcoming the easier first part. This reality is probably the number one reason managers become comfortable maintainers, and uncomfortable changers. Think of the infinitely painless “That’s the way we have always done it” syndrome. A aining a reasonable profit is an essen al task of every department manager. While profit may be a dirty word to some chumps, it’s used for everyone’s benefit star ng with the government taxes. Without it these poli cal bozos couldn’t pay their (our) bills without borrowing (oh, yeah that’s right, the bumpkins do that now), there would be no new equipment, building adds and fixes, bonuses, raises, marke ng funds, addi onal help, and the list goes on. Profit is a ainable for just about any department provided the five vital ingredients of the recipe are managed correctly, then peppered with some mo va on and endurance. No one said it would be a “piece of cake”, like my now learned good friend Mainer Dan would say. Lesson Here’s the reality of fixing any department. Start with a vision. The other day I was with a suffering client, and I asked the department manager to design the personnel makeup of the department star ng with a completely clean sheet, including all staffing, loca ons, payplans, performance objec ves, and budgets. He did and a er a few massages of his info, this is now the vision that we are targe ng. So, the next steps are to analyze the five vitals to determine how we will progress. If it takes three months, six months, or an intense year, we will march forward un l this vision is achieved. Without this detailed image, where would we be going? I guess anywhere would be acceptable, something I witness too much in the dealer world. Gimme sumton If you want to take a look at your service and/or body opera on using the five vitals (not to be confused with vi les) send me a note to Ed@NetProfitGroup.com and put on the subject line “Push them vitals my way Pablo” and I’ll send you a ni y li le Excel workbook to si through. Who knows, you might cook up some delicious ac ons while you sip on your cool Yuengling. I’m headed for mine. Ed Kovalchick has traveled the world training and consul ng in fixed opera ons with manufacturers and dealers. His extensive background includes master technician status, independent shop owner, dealer with all Chrysler & Nissan franchises, and founder of Net Profit Inc., fixed opera ons consul ng and training. He is a graduate of the University of Louisiana, and has served as state president of the Automo ve Service Councils, and the advisory boards of Wyo Tech and Virginia College. He has been a regular columnist and conference presenter with Dealer Magazine and Digital Dealer since 1995. He can be reached at Ed@NetProfitGroup.com. If you have ques ons or comments regarding this ar cle, please share them. Or contact me regarding consul ng, training, or research/development services. Email: Ed@NetProfitGroup.com Phone: 205-937-1792

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


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March - April 2018

NORTHEAST 2018 Panel Shares Tips to ‘Take Back Your Business’ Wri en by Chasidy Rae Sisk On the first night of AASP/NJ’s NORTHEAST 2018, collision repair industry a orney Erica Eversman par cipated in a panel discussion tled “Take Back Your Business: A Legal Guide” alongside Larry Montanez of P & L Consultants and LIABRA Execu ve Director Ed Kizenberger. Examining the industry’s focus on proper repairs and following OEM procedures, these industry experts discussed naviga ng a shop owner’s legal responsibili es while balancing financial requirements. Star ng with the Right to Appraisal (RTA) and the Assignment of Proceeds (AOP), Montanez stressed that these are first-party documents only and cannot be u lized as third-party documents. He also emphasized the importance of proper documenta on in a very clean, organized file. Eversman said, “There is an appropriate me for various documents or various procedures to be pursued. You wouldn’t paint the car before you fixed it. You don’t necessarily want to do something like an AOP on the very first day someone walks in the door. “Part of the reason I say that is because your contract with your customer is to repair the vehicle and to be paid for the repair. The AOP is a separate contract in which your customer is giving you the right to stand in their shoes to collect what has not been properly paid by the customer’s insurance company in exchange for allowing the customer to not have to pay in full at that moment, so you will release the lien you properly have for repairing the vehicle. You’re allowed to keep that car un l you’re paid in full. It’s like an IOU. It’s different; it’s a separate contract from the obliga on the customer has, that they agreed to pay you. That ming issue is very important to understand.” According to Montanez, “You need a well-wri en Authoriza on to Repair and other documents that cover your liabili es. You need to explain the paperwork to the customer before they sign it, and you need to keep it organized because it could be evidence.” Montanez explained that in an RTA, both the customer and the shop hire appraisers, and if the two par es can’t agree, the customer can elect to choose a third-party independent adjuster. If there’s s ll dissent, the judge will appoint an umpire to make the call. This prevents shops from needing to go to court and saves those expenses. An added benefit is that these situa ons can be useful for their preceden al value. Eversman explained, “If you have posi ve umpire decisions that your customer has won, you can use those in later umpire scenarios. But you can also use those to submit to whatever respec ve DOI in your state to demonstrate this is an ongoing pa ern or prac ce of this par cular insurance company, [and] that they force their customers to go to these extreme lengths to get what they were en tled to under the insurance policy. So that could be an added advantage of going through the whole ugly process.” Continued on Page 69

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Continued from Page 68 The RTA was started by the DOIs because they were red of insurer/insured disputes over claim valua ons. They created a mini-arbitra on process to resolve issues without the court’s involvement, Eversman explained. “Some courts look at the RTA clause and want to know you made an a empt to resolve the conflict before you came to them, so always be in the posi on where you can assure the judge that you came to court as a last resort,” she said. Responding to an a endee’s ques on, Eversman advised that it’s rare to successfully recover legal fees on a shortpay lawsuit. However, Montanez noted, “It’s not always about winning financially. Some mes, it’s about proving a point to the insurance companies and se ng a precedent so they don’t want to fight with you. You’re not winning THAT case; you’re winning every one a er it.” “Through mul ple RTAs, you can establish your labor rate,” she said. “You get into something we call issue preclusion, which just says ‘We’ve already dealt with this exact issue, and you don’t get to bring it up and fight me on it every single me.’ That can be very helpful in court when you have that precedent, even if it’s just in small claims. This issue has been repeatedly decided and shouldn’t have to be con nuously li gated just because the insurance company wants to argue about it over and over again.” The panelists discussed how liability for a proper repair falls solely on the shop and, in some cases, the technician. There are situa ons where it’s necessary to total a car because they’re meant to save people, but they’ve been damaged to the point that that’s no longer possible. Montanez stressed, “Keep in mind there’s only one way to repair a vehicle. ‘Recommended by manufacturer’ means you have to do it their way because they’ve invested to ensure their way means safety. The insurance company has no say in the ma er, and no one cares about your opinion either.” “Vehicles are designed to be safe, and as professional repairers, that’s your fundamental task,” Eversman said. Eversman discouraged a endees from taking a hold harmless or indemnifica on agreement, explaining that they allow a shop to sue the assignee if the shop is sued. “It basically means, ‘I know this is the wrong way to repair the vehicle, but I’ll do it anyway if you indemnify,’” she said. Montanez agreed. “Never take a hold harmless,” he said. “It’s an issue in court because you’re the professional and should have done it right.” “If it’s a safety issue, there’s no ques on that you shouldn’t do it, but in cosme c cases, such as pain ng with a bad color, you could possibly use a hold harmless,” Eversman added. “However, both the customer and the insurance company have to sign the hold harmless, and the insurer will almost never agree to that.” Eversman and Montanez returned to the topic of total losses, poin ng out that the customer could be prevented from transferring ownership un l the shop is paid in full due to the signed authoriza on to repair. Therefore, if the insurance company tries to avoid paying for the repairs performed before deeming the vehicle a total loss, the consumer needs to file a complaint with the DOI. Eversman and Montanez answered a few ques ons from the audience as their me concluded.

Source: Chasidy Rae Sisk - www.autobodynews.com

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


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March - April 2018

2018 2 01 8 M o opar p ar M ast aster er s G Gui ui ld O fffi fi cer c e r s & Com Committee m i t t eess Vendor Commi ees

Officers: President - Susan McDaniel - Bill Luke CJD – Phoenix, AZ Vice President - Joe McBeth - Dallas DCJ – Dallas, TX Secretary - Mike Opperman - Baxter CJD - Omaha, NE Treasurer - Don Cushing - Bald Hill DCJR - Warwick, RI

Execu ve Commi ee - All Officers Including: Dan Hu on - Tom O’Brien DCJR - Greenwood, IN Marvin Windham - Benchmark CJD – Birmingham, AL Alan Yancey - Hayes CDJ - Alto, GA Rick Monteiro - Jack Powell CJD – Escondido, CA Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Paul Allred - Stateline CJD – Fort Mill, SC Gerry Oakes - Baxter CJD - Omaha, NE Glenn Hojnacki - Milosch’s Palace CJDR – Lake Orion, MI Cody Eckhardt - Larry Miller DCJR - Sandy, UT

Guild Commi ees:

CDK Global Mike Opperman - Baxter CJD - Omaha, NE - (Chair) Dan Hu on - Tom O’Brien DCJR - Greenwood, IN Paul Allred - Stateline CJD – Fort Mill, SC Joe McBeth - Dallas DCJ – Dallas, TX

Reynolds & Reynolds Rick Cutaia - Rick Hendrick DCJR – Charleston, SC (Chair) Randy Rogers - Huffines CJDR - Plano, TX Kent Cogswell - Jack Phelan CDJR - Countryside. IL Alan Yancey - Hayes CDJ - Alto, GA Marvin Windham - Benchmark CJD – Birmingham, AL (Alt)

OEConnec on & Snap On Business Solu ons

Finance Commi ee

Dan Hu on - Tom O’Brien CJD – Greenwood, IN (Chair) Paul Allred - Stateline CJD – Fort Mill, SC Susan McDaniel - Bill Luke CJD – Phoenix, AZ Cody Eckhardt - Larry Miller DCJR - Sandy, UT Don Cushing - Bald Hill DCJR - Warwick, RI

Susan McDaniel - Bill Luke CJD – Phoenix, AZ Don Cushing - Bald Hill DCJR - Warwick, RI Rick Cutaia - Rick Hendrick DCJR – Charleston, SC

UPS

Nada 2019 Planning Jill Vance - Avenue Event Group, LLC

Newsle er/Website/Social Media Don Cushing - Bald Hill DCJR - Warwick, RI

Paul Allred - Stateline CJD – Fort Mill, SC (Chair) Rick Cutaia - Rick Hendrick DCJR – Charleston, SC Rick Stewart - Commonwealth DR - Louisville, KY

AER Robert Chatwin - Larry Miller DCJR - Sandy, UT (Chair) Glenn Hojnacki - Milosch’s Palace CJD – Lake Orion, MI Josh Gouldsmith - Gladstone DCJ - Gladstone, MO Shane Birdyshaw - Benchmark CDJR - Birmingham, AL Jim Jaeger - Bosak Motors - Merrillville, IN (ALT)

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

Mopar Masters Guild Magazine

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


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