AASP-MN News April 2016

AASP-MN Announces 2016-2017 Board of Directors

April 2016

PLUS: Register for Mike Anderson’s Seminar, “Negotiation Tools & Best Practices” (Page 10) & The 22nd Annual AASP-MN Golf Outing (Page 16) www.grecopublishing.com

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AASP-MN News

AASP-MN News

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AASP-MN News

CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2016 All rights reserved. Cover image © www.istockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

Vol. 24 No. 4

PRESIDENT’S MESSAGE....................................................................6 Ready to Lead

by Greg Kasel, AAM, AASP-MN President LEGISLATIVE UPDATE ......................................................................7 AASP-MN and State Farm Discuss PartsTrader and Legislative Issues

by Kevin Walli, AASP-MN Lobbyist

AASP-MN BOARD MEMBERS 2016 - 2017 PRESIDENT Greg Kasel, AAM

LOCAL NEWS ................................................................................8

IMMEDIATE PAST PRESIDENT Tom Gleason

“SHOP HERE FIRST” ASSOCIATE MEMBER DIRECTORY ............................12

SECRETARY-TREASURER Wayne Watson

NATIONAL NEWS ............................................................................13

“NEGOTIATION TOOLS AND BEST PRACTICES” REGISTRATION ....................10

DEG ESTIMATING TIPS ....................................................................15

COLLISION DIVISION DIRECTOR Will Latuff

22ND ANNUAL AASP-MN GOLF OUTING REGISTRATION ............................16

MECHANICAL DIVISION DIRECTOR Mars Overlee

PARTNERS IN PREVENTION................................................................21 MnTAP Provides Information on Better Cleaners and Degreasers

ASSOCIATE DIVISION DIRECTOR Dave Bock

CASH IN ON YOUR MEMBERSHIP!........................................................22 CBIZ Payroll

COLLISION SEATS Jim Siegfried, AAM Bruce Tschida, AAM MECHANICAL SEAT Carl Thomas

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver

UPCOMING EVENTS

June 2, 2016 Mike Anderson’s “Negotiation Tools & Best Practices” Seminar Radisson Minneapolis/ St. Paul North Roseville

June 21, 2016 22nd Annual Golf Outing Keller Golf Course, Maplewood

August 24, 2016 St. Paul Saints Game CHS Field, St. Paul

For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.

ADVERTISERS’ INDEX PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER: Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES: Alicia Figurelli (alicia@grecopublishing.com) MANAGING EDITOR: Jacquelyn Bauman (jacquelyn@grecopublishing.com) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER: Donna Greco (donna@grecopublishing.com)

AmeriPride ....................................................15 Axalta Coating Systems ................................OBC Blue Net, Inc. ..............................................14 Buerkle Hyundai............................................17 Choice Auto Rentals......................................3 Dentsmart ....................................................6 Inver Grove Honda / Inver Grove Toyota..............17 Jack McClard ................................................4 Keystone ......................................................3 Libson Twin City ..........................................18 Lowell’s PCE ................................................19 Maplewood Toyota ........................................18

Mercedes Benz of Maplewood ......................4 Mills Parts Center ........................................20 Morrie’s ........................................................9 Motorwerks BMW ........................................IBC Motorwerks MINI ..........................................

MPA ................................................................................11 Rosedale Chevrolet .......................................20 Roseville Chrysler ........................................20 Steck Manufacturing ....................................19 Straight & Square ........................................14 Toyota Group ................................................2

www.grecopublishing.com

AASP-MN News

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PRESIDENT’S MESSAGE

Ready to Lead

by Greg Kasel AASP-MN President

Hello,

As the new president of AASP-MN, I would like to introduce myself. I am Greg Kasel, owner of Downtown Tire & Auto in Hastings, MN. I started working in our family repair shop/gas station in the early ’80s. After graduating high school, I attended Dakota County Technical College, graduating in 1986. I continued to work in the shop until 1998, when I took it over from my dad.

It will be an honor to serve as your president in the upcoming year.

I’d like to remind you of all the benefits of belonging to our great organization. There are a wide variety of cost-saving programs, such as insurance, uniforms, credit card processing and many more. The savings members enjoy usually cover the cost of membership, so please take a few minutes to check them out.

Along with the benefit of saving money, there is the priceless benefit of networking with other shop owners around the state of

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Minnesota. One of our largest events is the Leadership Conference on April 14. Attendees have many opportunities to meet and chat with other shop owners throughout the day. Attendees can also meet with several vendors to learn about the new products and services available.

Believe me when I say that if you are having some type of issue or have a question about something, someone has seen it before or can point you in the right direction. A few other great events are the golf outing in June, the Race for Automotive Education in January and the MechXchange (for mechanical shops) and BS Sessions (for collision shops) held throughout the year.

If you have any suggestions or ideas, please let your voice be heard. Remember, AASP-MN is your association. I can be reached at (651) 437-6400 or greg@downtowntireandauto.com.

Thank you and have a great year!

AASP-MN News

LEGISLATIVE UPDATE

AASP-MN and State Farm Discuss PartsTrader and Legislative Issues

by Kevin Walli, AASP-MN Lobbyist

In early March, representatives from AASP–MN and State Farm Insurance, including its Minnesota lobbying firm, met to discuss pending legislation and issues relating to the implementation of the PartsTrader program.

The meeting was several months in the making and occurred in response to the charge from the House and Senate Commerce Committee Chairmen that the insurance industry and repair industry try to find common ground on AASP-MN’s proposed amendments to the “prohibitions on insurers” provisions of Minnesota Statutes Section 72B.092.

In 2015, AASP-MN prepared legislation, authored by Senator Ron Latz (DFL-St. Louis Park) and Representative Bob Loonan (R-Shakopee), which would prohibit insurers from requiring that insureds take their car to a “particular motor vehicle repair shop or shops designated by the insurer” for loss adjustment or inspection. The bill also proposed to prohibit insurers from specifying or requiring that a repair shop “utilize specific products, vendors, distributors, manufacturers or suppliers in order to carry out vehicle repairs for an insured or claimant.”

The AASP-MN legislative proposal was narrowed during the 2015 legislative session. The measure retained language prohibiting insurers from requiring insureds to obtain an estimate from a particular repair shop designated by the insurer. However, the other prohibitions were narrowed to just two key points – a prohibition on specifying use of a particular “electronic estimating system” and a prohibition on specifying the use of a “particular software program” for the procurement of parts.

The reference to the software program was, of course, in response to repair industry concerns over the implementation of the PartsTrader program.

The AASP-MN members present at the meeting with State Farm expressed a strong preference for being evaluated based on capabilities and results rather than use of a particular program or product. It was noted that one of the key elements of the repair process – “cycle time” – has not been enhanced through the use of PartsTrader, and in some instances, the program does not find the best pricing available. State Farm noted that they feel the program provides greater “transparency” regarding the parts that are being used in vehicle repairs. However, shops expressed concerns over inefficiencies, including an increase in the delivery of incorrect or damaged parts, as a result of utilizing the PartsTrader program.

In the final analysis, State Farm officials indicated that they could not support the AASP-MN provisions – even the more nar-

row provisions that emerged from the 2015 session. It was noted that the provision relating to use of a particular electronic estimating system would not be of consequence to State Farm currently because they provide an “open platform” for estimates.

Nonetheless, they indicated that they could not support the change since they don’t want to limit their options in the future.

Despite our differences, the meeting was professional and State Farm officials pledged to consider several of the repair industry’s suggestions regarding PartsTrader as they seek to improve the program.

In the early weeks of the session, AASP-MN has also had discussions with the Minnesota Insurance Federation and separate meetings with some of the insurance companies who are no longer members of the Federation.

Our objective is to follow the instructions of the House and Senate Commerce Committee Chairs to engage the insurance industry in discussions and see if any common ground can be found. Based on our previous discussions and the recent meeting with State Farm, it seems highly unlikely that we will find common ground. However, having made the effort, we can in good faith ask that our proposal receive an up-or-down vote on its merits. In that case, it is up to us to convince legislators to support the repair industry’s position over the objections of insurance industry representatives. That is the challenge we face in the 2016 session. We will keep the membership advised of our progress in the weeks ahead.

AASP-MN on Facebook! facebook.com/aaspmn

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LOCAL NEWS

AASP-MN ANNOUNCES 2016-17 BOARD OF DIRECTORS Congratulations to new Board members Dave Bock (Auto Value Parts Stores/APH, St. Cloud), Carl Thomas (Lancer Service Auto Care, St. Paul) and Bruce Tschida (Lake Marion Collision, Lakeville) on their election to the AASP-MN Board of Directors! They will join the other members of the Board, which includes: • Greg Kasel, AAM, Downtown Tire & Auto, Hastings – President • Tom Gleason, Pro-Tech Auto Repair, Corcoran – Immediate Past President • Wayne Watson, Autoworks Automotive Service Center, Woodbury – Secretary/Treasurer • Will Latuff, Latuff Bros., St. Paul – Collision Division Director • Mars Overlee, Rick’s 36 Automotive Services, Stillwater – Mechanical Division Director • Jim Siegfried, AAM, Crystal Lake Automotive, Burnsville – Collision Seat

AASP-MN extends a sincere thank you to this year’s outgoing Board members: • Jerald Stiele, Hopkins Auto Body, Hopkins • Joyce Weinhandl, Twin City & Northfield Auto Body, Bloomington/Northfield • Kevin Martin, PPG Automotive Finishes, Edina

Volunteers are the heart and soul of AASP-MN, and we appreciate the leadership and commitment of these dedicated members.

AASP-MN & AXALTA COATING SYSTEMS TO HOST “NEGOTIATION TOOLS & BEST PRACTICES” SEMINAR AASP-MN and Axalta Coating Systems are pleased to announce they will co-host “Negotiation Tools & Best Practices” on Thursday, June 2. The program will take place from 10am4pm at the Radisson Minneapolis/St. Paul North in Roseville, Minnesota.

The seminar, presented by industry expert Mike Anderson of Collision Advice, will focus on the negotiation process between an insurer and a collision repair facility. Attendees will learn how to justify getting paid for not-included operations and materials using four negotiation questions, as well as results from the “Who Pays for What?” survey and other resources. See page 10 of this issue for more details.

Space is limited and the program is expected to sell out.

For additional information or to register, contact the AASPMN office at (612) 623-1110/(800) 852-9071 or visit aaspmn.org.

AASP-MN ANNOUNCES NEW VENUE FOR ITS 22ND ANNUAL GOLF OUTING AASP-MN is pleased to announce it will hold its 22nd Annual Golf Outing on Tuesday, June 21 at Keller Golf Course in Maplewood.

“After 21 years hosting the outing at Tartan Park Golf Club, we were disappointed to hear of its closing,” said AASP-MN

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Executive Director Judell Anderson. “However, we believe we have chosen another great course to host the event for years to come.”

Over 150 AASP-MN members, employees, vendors and insurance industry representatives are expected to enjoy the day of golf and socializing. Play will begin at noon, followed by a social hour and awards presentation. The cost to participate is $100 per golfer or $400 per foursome. Golf holes are also available to sponsor for $350 each.

For additional information, see page 16 of this issue or contact the AASP-MN office at (612) 623-1110 / (800) 8529071 or visit aaspmn.org.

APPLY FOR A SMALL BUSINESS GRANT TO REDUCE VOCS Improve the air at your business by reducing the use of chemicals known as volatile organic compounds (VOCs).

VOCs are emitted from many industrial and commercial processes. The familiar smells from coatings, inks, solvents, adhesives, gasoline and other everyday products are VOCs. They can be harmful to your health. When released outside, they contribute to smog, a harmful air pollutant.

Reducing VOCs helps save businesses money on disposal and permitting fees, and can reduce some regulatory obligations. It also means less exposure and better health for employees.

The grants will pay up to $50,000 (with a minimum 25percent match required) for projects to reduce the use of VOCcontaining chemicals or to put in lower-emitting equipment.

Grant applications must be from small businesses with less than 100 employees with painting, degreasing or cleaning operations. A variety of other projects to reduce VOCs cost-effectively may also be eligible.

Last year, 12 grant recipients were in the automotive industry. Grants helped these businesses convert to waterborne paint systems, replace solvent-based parts washers with waterbased units and more. To view the list of recipients, visit tinyurl.com/MN-VOC-grant.

The grant application can be downloaded by visiting tinyurl.com/MN-VOC-grant-application. Applications will be accepted until May 11, 2016.

For more information, visit the MPCA VOC website at pca.state.mn.us/voc or contact Eric David at eric.david@state.mn.us or (651) 757-2218.

THANK YOU TO OUR SPONSORS Recently, AASP-MN sought sponsorship support from its Associate members and other industry vendors to help support the Association’s educational programming and other activities in 2016. Sponsorships help AASP-MN deliver the quality programs members expect and keep registration fees affordable.

To date, the following companies have made sponsorship commitments: Gold Sponsors Auto Value Parts Stores /APH Autoshop Solutions Axalta Coating Systems CBIZ AiA Meadowbrook Insurance

AASP-MN News

PPG Automotive Finishes United Fire Group

Silver Sponsors aaa Auto Parts Dent Impressions Enterprise Rent-a-Car LKQ/Keystone Automotive Lowell’s Performance Coatings Midwest Parts Advantage Mitchell International O’Reilly Auto Parts PAM’s Auto, Inc. R.O. Writer Suburban Chevrolet

Other Sponsors AASP National Choice Auto Rental Dentsmart Paintless Dent Removal FinishMaster Global Finishing Solutions Hertz Corporation Insurance Brokers of MN, Inc. / The Jensen Agency Kukui Corporation Net Driven Sherwin-Williams Single Source, Inc. Valspar

Welcome New Members: MARCH 2016 Crosslake Auto Body Crosslake Honest-1 Burnsville Eagan Prior Lake Larsen Automotive Glencoe R.O. Writer St. Paul

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SHOP HERE FIRST! AASP-MN Associate Member Directory 3M Company – St. Paul, MN aaa Auto Parts – East Bethel, MN aaa Auto Parts – Rosemount, MN AASP-MN BankCard Program – Minnetonka, MN Action Auto Parts of St. Paul, Inc. – St. Paul, MN AkzoNobel Automotive & Aerospace Coatings – Stillwater, MN AmeriPride Services – Minneapolis, MN Arcon Solutions, Inc. – Burnsville, MN Assessment Associates International – Minnetonka, MN Auto Body Specialties, Inc. – Mankato, MN Auto Color & Industrial Supply, Inc. – St. Joseph, MN Auto Data Labels, Inc. – Deer Park, NY Auto Nation Parts Department – White Bear Lake, MN Auto Plus Auto Parts – Bloomington, MN Auto Plus Auto Parts – Brooklyn Park, MN Auto Plus Auto Parts – Hopkins, MN Auto Plus Auto Parts – Lexington, MN Auto Value Parts Stores – St. Cloud, MN Automotive Parts Solutions, Inc. – St. Cloud, MN Automotive Recyclers of MN – Minneapolis, MN Automotive Training Institute – Linthicum, MD Autoshop Solutions – Apex, NC Axalta Coating Systems – Chisago, MN BASF Corporation – Crystal, MN Blue Net, Inc. – Eagan, MN Blue Rock Refinishing Solutions, LLC – Roseville, MN Blue Tow Service Center – Blaine, MN Boulay Financial Advisors – Minneapolis, MN Brake & Equipment Warehouse – Minneapolis, MN Buerkle Honda – White Bear Lake, MN Buerkle Hyundai – White Bear Lake, MN C.H.E.S.S. – West St. Paul, MN Cartier Agency, Inc. – Duluth, MN CBIZ AiA – Brooklyn Center, MN Choice Auto Rental – Bloomington, MN Cottens’ NAPA – Anoka, MN Dent Impressions – Rogers, MN Dentsmart – Isanti, MN Derson/Clean Burn – Watertown, MN Dorman Products – Colmar, PA Dynotec Industries, Inc. – Shakopee, MN Eau Claire Auto Parts, Inc. – Eau Claire, WI Elite Auto Accessories, LLC – West St. Paul, MN Elite Worldwide, Inc. – Rancho Santa Fe, CA Enterprise Rent-A-Car – Eagan, MN Estify, Inc. – Agoura Hills, CA Factory Motor Parts – Eagan, MN Finishmaster – Duluth, MN Finishmaster – St. Cloud, MN Finishmaster – Fridley, MN G & K Services, Inc. – Minneapolis, MN Heartman Agency – Faribault, MN Hedahls Parts Plus – Detroit Lakes, MN Hedahls Parts Plus – Fergus Falls, MN Hertz Corporation – Richfield, MN IDENTIFIX – Roseville, MN Insurance Brokers of MN - Jensen Agency – Minneapolis, MN 12 April 2016

Jim’s Bumper to Bumper – Oslo, MN Johnson Supply Company – Duluth, MN Kent Automotive – Minneapolis, MN Keystone Automotive – Minneapolis, MN Kukui Corporation – San Jose, CA LKQ - John’s Auto Parts – Blaine, MN LKQ - Minnesota – Albert Lea, MN LKQ - Viking Auto Salvage – Northfield, MN Lowell’s Performance Coatings & Equipment – Edina, MN Mark’s Towing, Inc. – Eagan, MN McClard & Associates – Hopkins, MN Meadowbrook Insurance – Overland Park, KS Metro Auto Salvage – Lakeville, MN Midwest Parts Advantage – Eden Prairie, MN Mighty Auto Parts – Burnsville, MN Mirka Abrasives, Inc. – So. St. Paul, MN Mitchell International – Minneapolis, MN Mitchell1 – Slidell, LA Morrie’s Automotive Group – Brooklyn Park, MN Motor Parts & Equipment – Winona, MN NAPA Auto Parts – Forest Lake, MN NAPA Auto Parts – Monticello, MN NAPA Distribution Center – Owatonna, MN NAPA Distribution Center – St. Louis Park, MN National Coatings & Supplies – Little Canada, MN National Coatings & Supplies – Rochester, MN Net Driven – Duluth, MN Norton Automotive Aftermarket – No. St. Paul, MN O’Reilly Auto Parts – Brooklyn Park, MN PPG Automotive Finishes – Edina, MN PAMs Auto, Inc. – St. Cloud, MN Parts Department of Faribault – Faribault, MN Parts Department of Owatonna – Owatonna, MN Parts Department of Northfield – Northfield, MN Pro Paint Metro, Inc. – Baldwin, WI Pro Paint Metro, Inc. – Roseville, MN Proven Force Clutch and U Joint – Maple Grove, MN Pump & Meter Service – Hopkins, MN Rudy Luther’s Hopkins Honda – Hopkins, MN SATA Spray Equipment – Spring Valley, MN Savage Parts Service – Burnsville, MN Scharf Auto Supply – Rochester, MN Schmelz Countryside – Maplewood, MN Sharp Auto Parts, Inc. – Stillwater, MN Sherwin Williams Automotive Finishes – Bloomington, MN Single Source, Inc. – Baldwin, WI Single Source, Inc. – Roseville, MN Southern Minnesota Auto Supply Co. – Rochester, MN St. Paul/Mpls. Wholesale Parts – Anoka, MN Straight & Square Distributing, LLC – St. Cloud, MN Suburban Chevrolet – Eden Prairie, MN United Fire Group – Hugo, MN Valley Imports – Fargo, ND Valspar – Minneapolis, MN Wakeman Equipment Sales, Inc. – Brown Deer, WI Wallace Auto Parts – Columbia Heights, MN Wipers & Wipes, Inc. – Hugo, MN

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NATIONAL NEWS

Auto Care Association Calls on Copyright Office to Address Copyright and Competition In February, the Auto Care Association submitted comments to the U.S. Copyright Office regarding its study into the application of copyright law to embedded software in vehicles. While the association appreciates that the office granted limited exemptions to the Digital Millennium Copyright Act (DMCA) for purposes of vehicle repair, included in the association’s comments was the notion that “broader relief is necessary to address the needs of consumers and aftermarket competition.”

According to the association, vehicle manufacturers, in an effort not to protect their copyright but to thwart competition, are adopting technological protection measures that prevent independent service facilities and consumers from accessing essential software. “In some cases, the measures do not protect the software itself; in others, the measure protects against replacement of the software rather than access to it,” the association said.

The association is requesting that the Copyright Office make clear that the DMCA does not prohibit circumvention by independent service providers of technological measures undertaken by the manufacturers that prevent access to embedded software needed to carry out lawful repair of motor vehicles. In addition, citing the fact that the Copyright Office had only granted an exemption to consumers from circumventing software, the association called for the office to “extend exemptions to entities that perform the exemption activity on behalf of others, where the activity itself requires specialized skills or professional equipment to avoid damaging the copyrighted work or the product in which it is embedded.”

The association further asked that the exemptions granted for purposes of repair be made permanent and that the agency make clear that when purchasing a vehicle, the consumer also purchases the software used in that vehicle, stating, “Clarifying that the purchaser of the vehicle owns the copy of the embedded software will promote competition and consumer rights in a manner fully consistent with the promotion and purposes of copyright law.”

For more information on the Digital

Millennium Copyright Act, contact Aaron Lowe at (240) 333-1021 or aaron.lowe@ autocare.org.

News from the Lang Aftermarket iReport

Millennials Blow by Boomers The Millennial generation continues to grow, boosted by young immigrants entering the U.S., while the Boomer population is in steady and irreversible decline.

Millennials have distinctly different attitudes than Baby Boomers over a wide range of issues, many of them with significant aftermarket implications.

Six Major Takeaways

• Millennials (born between 1985 and 2000) passed Baby Boomers (born 1946 to 1964) in 2015 as the largest generation in the U.S. • Millennials do not share the Boomers' love affair with the automobile.

Millennials see vehicles in a utilitarian perspective and have little of their egos invested in the types of vehicles they drive.

• There are significant differences in how Millennials and Baby Boomers make aftermarket buying decisions. Millennials are much more likely than Boomers to use the Internet and social media to find out what is wrong with their vehicles and what repairs cost, as well as where to have repairs performed.

• Price can be very important in the decision making of Millennials regarding aftermarket purchases, reflecting the fact that Millennials are the first generation in U.S. history to enter adulthood in worse economic shape than their parents.

• Millennials generally have more preconceived opinions of what is wrong with their vehicles and what repairs should cost when going to repair outlets than do Baby Boomers.

• Millennials are more likely than Boomers to regard vehicles as a service to be hired or rented rather than something to be owned. This has significant consequences for consumer acceptance of driverless vehicles, consumer interest in renting or hiring vehicle services rather than owning vehicles, as well as other consumer attitudes with aftermarket implications.

AASP-MN News

Install-It-For-Me Market Bigger More consumers are purchasing auto parts and taking them to service outlets for installation. This is the Install-It-For-Me (IIFM) automotive repair market, and it is growing in the U.S. In its latest nationwide auto repair study, Lang Marketing found that most service stations and garages are seeing an increase in IIFM activity, with a majority of outlets indicating it is occurring nearly three times per month, on average. The IIFM market has two key characteristics: consumers diagnose what is wrong with their vehicles, and repair outlets are deprived of profits on parts brought to them by consumers for installation.

A leading reason for service stations and garages not performing IIFM work is the loss of normal profits on auto parts brought to them by consumers for installation. While some of this parts profit loss is offset by higher labor rates, which installers charge for IIFM work, profit loss on parts remains a major sticking point for many installers.

Another important reason service stations and garages do not perform IIFM work involves insurance issues. Many installers fear liability if IIFM parts do not fix the problem or if an accident occurs because a vehicle does not properly perform.

More than two-thirds (67 percent) of service stations and garages conducting IIFM work raise labor charges for installing these parts, above their usual labor rate.

This increase in labor charges for IIFM work ranges as high as 75 percent (with 40 percent an overall average). Increased installation charges help to partially offset the loss of parts profit suffered by service stations and garages conducting IIFM work.

Six Major Takeaways

• IIFM activity is increasing, with over eight in 10 service stations and garages (81 percent) reporting consumers bring auto parts (purchased elsewhere) to them for installation. This is up from 78 percent of service stations and garages reporting this last year, and 75 percent doing so in 2012.

• Lang Marketing found in its latest continued on page 19

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ESTIMATING TIPS

Pinch Weld Damage in CCC – The repair needed to address pinch weld damage after a vehicle has been set up on a frame machine is a not-included operation in CCC. This can be found in the Motor Guide to Estimating on page G10 under the not-included labor times.

Missing Labor – If the labor time for a component is missing from your estimating system, you should not assume that the labor is included with another operation. Mitchell states in DEG inquiry 7872 that “it is not to be inferred that a component with no established Mitchell labor time has been included in another.” In DEG inquiry 7823, CCC/Motor states, “All operations listed as included should display as ‘INCL’ during the estimate process regardless if they have an estimated work time published.”

CCC Seam Sealer – CCC states in DEG inquiry number 6781 that “Some replacement components may or may not be supplied with duplicated OEM caulk/seam sealer. This is not included in R&R time and requires an on-the-spot evaluation.”

Seam Sealer in Audatex – Audatex states in DEG inquiry number 1157 that seam sealer is a body operation. “The Audatex database includes the labor for seam sealing where required per the OEM manufacturer service procedures and this labor is allotted in the body repair allowance, not the refinish allowance. The cost of body materials is not addressed within the Audatex database.” The Audatex time for replacement of a panel includes the labor to apply the seam sealer but does not include the removal of the existing seam sealer per DEG inquiry 2951.

LET US TURN THEM AROUND!

Cover and Protect interior in CCC – The additional work needed to cover and protect the vehicle during welding is a not-included operation in CCC. The resolution for DEG inquiry number 7851 states, “Items that are not listed under the INCLUDED/DOES NOT INCLUDE heading for any given procedure have not been considered in the estimated work time development for that procedure, unless specified by a footnote.” Therefore, the additional work to cover and protect items is not included and should be an on-the-spot evaluation.”

Pre-fit not included in Audatex – DEG inquiry 2491 shows that pre-fit in Audatex is a not-included operation. “We have reviewed your inquiry and in the reference manual section 4-3, Replacement & Recycled Operations, there is a statement under Included Operations (Front End Cover/Panel)...Reasonable adjustment and alignment [as defined by the manufacturer using conventional fasteners and/or hardware]. Our labor includes time for normal adjustment and alignment for fit, one time. If a part needs to be removed multiple times to duplicate these efforts, that is not included in our labor times.”

Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.

You can view these tips and others on the DEG website, www.degweb.org.

Contact AASP-MN News Sales Director Alicia Figurelli

973.667.6922 / ALICIA@GRECOPUBLISHING.COM AASP-MN News

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NATIONAL NEWS

nationwide study of service stations and garages that 83 percent of outlets approached by IIFM consumers usually perform the work, up from 74 percent three years ago.

• The IIFM market faces two major problems: Parts brought to service stations and garages by consumers often do not “solve the problem,” and virtually none of the service stations and garages installing IIFM parts provide a warranty for their work.

• The Internet is fueling IIFM growth in three ways: Providing vehicle diagnostic information, developing cost estimates of various types of repair and selling auto parts at low prices.

• According to service stations and garages, approximately two-thirds of IIFM customers indicate they bought their parts on the Internet.

• With Internet resources growing and Millennials (the age group most likely to opt for IIFM repair) accounting for an increasing share of U.S. consumers, IIFM activity will continue to grow. continued from pg.13

Jobber DIY Market Shrink Facing strong automotive Do-It-Yourself (DIY) competition from retail auto parts stores and discount stores/mass merchandisers, jobbers suffered a significant decline in DIY strength over the past 10 years, falling nearly one-sixth in DIY market share. This reflects the inability of some jobbers to effectively compete with retail auto parts stores and discount stores/mass merchandisers (their two strongest outlet competitors) in the automotive DIY market, as well as disruptions to automotive DIY retailing driven by the Internet.

Six Major Takeaways

• The car and light truck DIY market increased $0.7 billion between 2004 and 2014, as jobber DIY sales fell more than $590 million during this 10-year span, at user-price.

• Jobber DIY volume declined at 1.6 percent average annual pace between 2004 and 2014, as the overall car and light truck DIY aftermarket averaged a modest 0.3

AASP-MN News

percent annual gain.

• Jobbers accounted for 19.8 percent of 2004 car and light truck DIY sales, falling to 17.8 percent of the 2009 DIY market, and descending to 16.3 percent of 2014 DIY light vehicle product volume.

• Jobber DIY car and light truck volume reached $4.0 billion at user-price during 2004, descending to $3.4 billion by 2014, at user-price.

• Jobber DIY sales ran contrary to their overall sales performance during the past ten years. Between 2004 and 2014, surviving jobbers combined for an 8.0 percent total increase in car and light truck product sales, boosted by their DIFM (DoIt-For-Me) market performance, which offset declining jobber DIY volume.

• Although DIFM volume boosted the overall sales of Jobbers during the past 10 years, declining jobber DIY business (which generates above-average gross profit margins), could have negative consequences for the bottom-line performance of some jobbers.

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PARTNERS IN PREVENTION

MnTAP Provides Information on Better Cleaners and Degreasers The Minnesota Technical Assistance Program (MnTAP) at the University of Minnesota has been working with the MPCA and other partners on the challenge of reducing volatile organic chemicals (VOCs) regulated by federal air quality standards. MnTAP is wrapping up identification and impact analysis of useful alternatives for traditional solvents used in cleaning and degreasing in maintenance operations at industrial, manufacturing and service businesses like auto repair shops in Minnesota.

The primary objective in this work, supported by U.S. EPA Region V, was to increase adoption of low-VOC, low-HAP (hazardous air pollutant) degreasing solvents by providing free chemicals and supplies for shops to conduct month-long trials of alternatives to see if they would work.

Degreasing operations are the second-largest source of VOC releases from commercial and industrial sources in Minnesota, based on MPCA 2008 emissions estimates. Smaller facilities like automotive repair shops are estimated to account for 7.7 million pounds of VOC releases annually. This is five percent of all industrial and commercial process VOC emissions. These small facilities, referred to as area sources, tend to be unregulated or lightly regulated, so there has been little motivation to change products.

MnTAP found that one of the major obstacles to companies adopting less hazardous products was the perception that “green” products cost more and don’t work as well as other products. Free trials of lower-VOC products and hands-on technical support allowed shop technicians to see for themselves how well these products worked in their own shops. MnTAP has performed product analysis for 30 facilities, 23 of which are piloting new, greener alternatives. Nineteen recommendations have been implemented so far, with an annual savings of 2,890 pounds of VOC air emissions, 465 pounds of HAP emissions, 650 pounds of solid waste and $7,640 in cost savings for Minnesota businesses.

One repair shop with two metro locations chose to partner with MnTAP to identify green alternatives and options for cleaners used on-site. The largest opportunity for overall reduction of VOCs and HAPs was in finding a replacement for their brake cleaner. The original brake cleaner was roughly 97 percent heptane (a type of petroleum distillate and VOC) and three percent toluene (a VOC and HAP). Many brake cleaners contain hazardous air pollutants, and some cleaners that are marketed as

environmentally friendly options are not hazard free. Additionally, brake cleaners that come in containers that look almost identical to one another can contain surprisingly different chemical compositions. In most cases, the only way to differentiate between hazardous and environment-ally friendly brake cleaners is with the Safety Data Sheet (SDS) and the small part number located on the bottom right part of the can.

The brake cleaner the shop tested as a green alternative was CRC Brakleen 05050. This product is an acetone blend with other ingredients that contains a lower level of VOCs than what the shop was using. Product testing compared this product to other green alternatives, as well as to the existing product used at the shop. The green alternative product performed as well as the existing product for engine cleaning and brake jobs performed onsite, and outperformed other cleaning products tested. The annual benefit associated with a permanent change from the shops’ previous brake cleaner to CRC 05050 was a reduction of 850 pounds of VOCs and a reduction of 30 pounds of HAPs. Making the change may also save money on cleaning products. The shop plans to continue purchasing this product when current brake cleaner supplies are exhausted. The change will reduce employee exposure to HAPs and help to improve the overall air quality here in Minnesota.

The shop was already using refillable Sure Shot Sprayers from Milwaukee Sprayers to dispense its brake cleaner prior to participating in this pilot project. These sprayers are charged with compressed air and refilled and reused. Compressed air sprayers are among the most environmentally-preferred method for dispensing cleaning product, allowing cleaners to be purchased in bulk, reducing purchasing costs, eliminating metal can disposal or recycling costs, and eliminating VOC propellants like butane or propane.

MnTAP has compiled the data and practical experiences gained in this degreasing project and will post information on the website www.mntap.umn.edu for shops to review. MnTAP project staff are also available to help translate lessons learned and to provide one-on-one technical assistance. Ask to talk with degreasing project staff at MnTAP’s main number (612) 624-1300 or (800) 247-0015 to learn how you can reduce workplace air hazards and improve the environment.

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CASH IN ON YOUR MEMBERSHIP!

CBIZ Payroll CBIZ Payroll is the recommended vendor for payroll, timekeeping, 401(k), COBRA, Flex and HR Solutions for members of AASP-MN. They have designed a program specifically for AASP-MN members, which includes a 20-percent discount off of standard services pricing. This discount applies for all CBIZ payroll products and services except 401(k). The discount is effective as long as you’re a member of AASP-MN. CBIZ Payroll offers the following products and services:

• Payroll: The payroll services are focused on providing you the highest-quality service at a fair price. CBIZ is competitive with all of the major processors and usually can find ways to create additional efficiencies by integrating with your current systems.

• Timekeeping: CBIZ Payroll has a variety of web-based timekeeping options to choose from, which will save you time and ensure the accuracy of your hourly employees’ timecards. The system also provides a time-off tracking and request system that helps you monitor and approve absences.

• 401(k): CBIZ’s most popular 401(k) platform is fully-integrated with payroll and has no administrative fees. They also have a wide array of full-service offerings for larger plans.

• COBRA and Flex: The Affordable Care Act has made reporting and pre-tax plans very complicated. CBIZ Payroll has the knowledge and services to create programs that keep you compliant.

• HR Solutions: CBIZ has a variety of options to meet your needs, including a robust web-based HR Resource Center that comes with four hours of HR Hotline to full-blown HR Consulting. They also have a comprehensive HR Management System, which is fully-integrated with payroll.

For more information, please contact Carrie Hobrough, (612) 436-4620 or chobrough@cbiz.com.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums.

EMPLOYEE BENEFITS CBIZ AIA Contact: Dennis Begley 763-549-2260 / dbegley@cbizaia.com CBIZ AIA will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance.

UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year.

CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz

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Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson 651-486-4866 Discounts on industrial supplies and paper products.

Free, next-day delivery is available in the metro area.

Shipping free to outstate members with $100 purchase.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline. One free call is extended to all first-time AASP-MN member callers.

BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Margaret Klemmer 888-991-3449 / margaret@autoshopsolutions.com Autoshop Solutions offers custom website development, social media, SEO, PPC marketing and more, exclusively for the automotive industry. AASP-MN members receive a $500 discount off setup costs for services.

SHOP SERVICES Summit eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / fterlep@summitsoftwaresolutions.com AASP members receive a 5% discount on all Summit eMarketing Sherpas’ services, including: website design and development, search engine optimization, email marketing and communication, online review and reputation management and social media marketing.

Net Driven Contact: Jon Napoli 877-860-2005, ext. 400 / jnapoli@getnetdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees. For more information, contact Jon Napoli.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 AASP members are eligible for special Mitchell 1 information and management programs at significant discounts. For more information, log onto www.mitchell1.com or contact the Mitchell 1 representative at 888-724-6742, X6986.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aai-assessment.com www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

AASP-MN News

PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). Members who switch prior to June 30 will receive first month of payroll processing free.

CHECK GUARANTEE SERVICES Certegy Check Services Contact: Heather Ellis 952-240-5017 / heather.ellis@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com 180BIZ offers BUSINESS COACHING to AASP members at a steep 20% discount! One Eighty Business Solutions LLC (180BIZ) has been helping shop owners increase profits and car count while decreasing stress since 2003.

AASP members receive a discount on very affordable oneon-one coaching plans without long-term commitments and complicated contracts. 180BIZ offiers a risk-free trial of their services. To learn more, please call or email us, or visit our website.

LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.

AASP-MN News

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