AASP-MN News May 2017

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May 2017

2017 AASP-MN Annual Meeting & Leadership Conference Highlights

Plus: 23rd Annual AASP-MN Golf Outing www.grecopublishing.com

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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. © 2017 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. 25 No. 5

LEGISLATIVE UPDATE........................................................................4 Legislature’s On-Time Finish Not Certain

by Kevin Walli, AASP-MN Lobbyist DEG ESTIMATING TIPS ......................................................................5

AASP-MN BOARD MEMBERS 2017 - 2018

LOCAL NEWS..................................................................................6

PRESIDENT Wayne Watson

NATIONAL NEWS ............................................................................9

IMMEDIATE PAST PRESIDENT Greg Kasel, AAM

23RD ANNUAL AASP-MN GOLF OUTING REGISTRATION ..............................13

SECRETARY-TREASURER Will Latuff COLLISION DIVISION DIRECTOR Bruce Tschida, AAM MECHANICAL DIVISION DIRECTOR Carl Thomas ASSOCIATE DIVISION DIRECTOR Dave Bock COLLISION SEAT Matthew Feehan

COVER STORY ................................................................................13 AASP-MN Annual Meeting & Leadership Conference Provides Service, Education & Networking FEATURE STORY ..............................................................................19 Fly the Friendly Skies of Accountability

by Sam Silverstein CASH IN ON YOUR MEMBERSHIP! ........................................................20 These Bankcard Sales People are Driving Me Nuts!

MECHANICAL SEATS Randy Notto, AAM Mars Overlee UPCOMING EVENTS

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

June 15, 2017 Assured Performance’s 20/20 Vision Certified Collision Care Provider Clinic Minneapolis Airport Marriott Bloomington

June 20, 2017 23rd Annual AASP-MN Golf Outing Keller Golf Course Maplewood

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

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) SALES DIRECTOR Alicia Figurelli (alicia@grecopublishing.com) EDITORIAL DIRECTOR Joel Gausten (joel@grecopublishing.com) CREATIVE DIRECTOR Lea Velocci (lea@grecopublishing.com) EDITORIAL ASSISTANT Nick Fernandes (nick@grecopublishing.com) OFFICE MANAGER Donna Greco (donna@grecopublishing.com) www.grecopublishing.com

ADVERTISERS’ INDEX AmeriPride ................................................................21 Axalta Coating Systems..............................................IFC Buerkle Hyundai ........................................................10 CBIZ ..........................................................................OBC Choice Auto Rentals ..................................................17 Dentsmart ..................................................................16 FinishMaster........................................................................22 Inver Grove Honda / Inver Grove Toyota ............................8 Jack McClard ............................................................17 Keystone ....................................................................22 Libson Twin City ........................................................19 Maplewood Toyota ....................................................18

AASP-MN News

Mills Parts Center ......................................................18 Morrie’s ....................................................................5 Motorwerks BMW ......................................................IBC MPA..................................................................................................11 PAM’s Auto......................................................................................22 Proven Force..............................................................4 Rosedale Chevrolet ....................................................20 Roseville Chrysler ......................................................18 Sherwin Williams ......................................................6 Straight & Square ......................................................8 Toyota Group..............................................................12 West Bend..................................................................14

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LEGISLATIVE UPDATE

Legislature’s On-Time Finish Not Certain

by Kevin Walli, AASP-MN Lobbyist

The recent history of the Minnesota Legislature indicates significant challenges in finishing its work on time. 2017 may prove to be a continuation of that unfortunate trend.

Article 4, Section 12 of the Minnesota Constitution provides that the Legislature may not meet “after the first Monday following the third Saturday of May, of any year.” The deadline for finishing work in 2017 is May 22.

The 2017 Session is to approve the budget for the next twoyear cycle: July 1, 2017 through June 30, 2019.

In addition, there is some carryover work from 2016 when the Legislature was unable to complete a Bonding Bill for major infrastructure projects, while the Tax Bill was vetoed by the Governor due to some technical errors.

The Legislature is taking a significantly different approach to budget targets than Governor Dayton. The bills have to get through the Legislature and to the Governor’s desk in a form that he would be willing to sign. The indications in late April are that several of the bills may be subject to a veto, which would cause the budget-setting process to carry over beyond adjournment on May 22.

No Tax Bill in 2017 would mean no change in the current tax rates. This would result in the missed opportunity to provide some tax relief for businesses and individual taxpayers. State

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revenues have been coming in higher than projected for the last couple of years and there is a general sense that some measure of tax relief is long overdue.

The Legislature is also working to assemble a Bonding Bill to pay for major public infrastructure projects. Normally, this would be work reserved for the non-budget Session, but that work was not completed at the close of the 2016 Session.

There is a long line-up of infrastructure projects waiting to be financed with state bonds. The interest rates on state general obligation bonds remain very low, which means that fixing roads and bridges, building new university facilities and making wastewater improvements in towns across the state will be less expensive if an agreement can be reached on what projects should be built.

If legislative work cannot be completed by May 22, there will need to be a Special Session sometime between that date and July 1 in order to avoid a government shutdown. The new Fiscal Year starts on July 1 and without major budget bills in place, the state government shuts down.

Here’s hoping that the work of the 2017 Session can be done to avoid the headaches and heartaches of a government shutdown.

AASP-MN News

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ESTIMATING TIPS Audatex Refinish – Audatex refinish allowance includes one tint cycle to match the paint on the vehicle. This allowance is accounted for in the base refinish time and not the refinish setup. Also, if a custom color is necessary, this is not accounted for in the Audatex system and would require a manual line. This can be found in DEG inquiry 8089 and the Audatex DBRM section 4-5.

Structural Foam Application in CCC One – The application or removal of structural foam during the repair process is a notincluded operation in CCC One and requires a manual entry. This can be found in the MOTOR Guide to Estimating on page G10 under “Labor Time Does Not Include:” Unrelated Prior Damage in Audatex – When adding Unrelated Prior Damage to your estimate in Audatex, be aware that the system will calculate overlap between your damage estimate lines and the

unrelated prior damage lines. This is not evident unless you look at the labor report, which will show what overlap was taken. To avoid unintended overlap between the two estimates, a separate Unrelated Damage estimate would be necessary. This information can be found in DEG inquiry 10675 and the Audatex DBRM in section 2-2.

Seam Sealer Appearance Duplication in Audatex - The labor for any special processes required for the application of seam sealer to duplicate the appearance, masking or equipment setup would require manual consideration with a manual line. This can be found in DEG inquiry 10505.

The Society of Collision Repair Specialists recently released a video also addressing seam sealer considerations, and the role they play in the corrosion protection process. Visit https://youtu.be/OjnMv_k2Pr8 to watch the video.

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.

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LOCAL NEWS

AASP-MN Awards Roger Bonn Honorary Membership

Roger Bonn, recently retired from Peter’s Body Shop in St. Cloud, has been recognized as an Honorary Member of AASP-MN. The award was presented during the association’s Annual Meeting & Leadership Conference on April 13 at the Doubletree Hotel in Bloomington, MN. Bonn is only the third AASP-MN member to receive honorary membership. When presenting the award, AASP-MN Executive Director Judell Anderson stated, “Roger always has a unique perspective and fresh ideas and doesn’t hesitate to share them – which is a good thing. Roger believes in what he believes, and he isn’t going to beat around the bush.

This is why he has been such a great contributor to the association and has earned the respect of so many in our industry, and certainly, within AASP-MN.” Roger started in the collision repair industry at the age of 12, working half of the time alongside his parents in the front office and AASP-MN Immediate Past President the other half in the shop tearing Greg Kasel and Roger Bonn down and cleaning up cars, while learning about auto body repair from one of the area’s best body men at the time. In 1992, he joined his father as a full partner in the business and took over the daily operations. Together, they worked hard to unify the collision repair industry in the St. Cloud area by

developing industry repair standards to improve customer satisfaction and the reputation of the industry.

In 1993, Roger and his father were named the St. Cloud Area Chamber of Commerce’s Business Persons of the Year. While his father has since retired, Roger continues to be active in the St. Cloud Area Chamber of Commerce, the St. Cloud Technical College Foundation Board and the St. Cloud Regional Airport Advisory Board.

Roger has been involved in association activities for most of his work life. In 1994, he was elected to the board of directors as the collision division director, serving in that capacity until 1996. In 2008, he returned to the AASP-MN board and in 2009 served double duty, taking on the roles of secretary-treasurer and collision division director. He became president of AASP-MN in 2010 and continues to serve on AASP-MN’s Government & Regulatory Affairs and Legacy Committees. Anderson shared, “Roger has proven to be a grassroots lobbyist extraordinaire, always willing to tap into his many community connections, including legislators, to promote the interests of the collision repair industry.”

Roger and his wife Jill have been married for nearly 42 years.

They have two children, Matthew and Rachael. After 50 years in the collision repair industry, Roger retired on March 31 so that he can spend more time with his family and enjoy the things he loves to do – motorcycling, flying airplanes and traveling.

Anderson concluded, “Roger is a true champion of AASP-MN and the collision repair industry. The association and its members wish Roger and Jill the very best for a long and happy retirement!”

2017 SkillsUSA Contest Winners Announced

The 50th Annual Minnesota SkillsUSA competitions for collision repair and automotive service technology were held Saturday, April 1 at Dakota County Technical College, Rosemount. The competition allows high school and college students to demonstrate their abilities and talents in collision repair and automotive service. AASP-MN volunteers were out in force to help plan, organize and judge the competition.

Congratulations to the following SkillsUSA contest winners:

Auto Refinishing Technology High School Division 1st Place – Jeremy Edstrom, Hennepin Technical College, Brooklyn Park (PSEO student) 2nd Place – Colton Popp, St. Cloud Community & Technical College, St. Cloud (PSEO student) 3rd Place – Samuel Rakow, Hennepin Technical College, Brooklyn Park (PSEO student) College Division 1st Place – Dylan Ahrndt, Ridgewater College, Willmar 2nd Place – Jeremy Kruse, Ridgewater College, Willmar 3rd Place – John Spartz, Dunwoody College of Technology, Minneapolis

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Collision Repair Technology High School Division 1st Place – Colton Popp, St. Cloud Community & Technical College, St. Cloud (PSEO student) 2nd Place – Samuel Rakow, Hennepin Technical College, Brooklyn Park (PSEO student) 3rd Place – Jeremy Edstrom, Hennepin Technical College, Brooklyn Park (PSEO student)

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College Division 1st Place – Austin Younger, Dakota County Technical College, Rosemount 2nd Place – Andrew Stewart, South Central College, Mankato 3rd Place – John Spartz, Dunwoody College of Technology, Minneapolis

Automotive Service Technology High School Division 1st Place – Jon Hausen, Faribault High School, Faribault 2nd Place – Alexander Legatt, St. Cloud Community & Technical College, St. Cloud (PSEO student) 3rd Place – Christian Weber, Faribault High School, Faribault

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 2017.

Sponsorships help AASP-MN deliver the quality programs members expect, and keep registration fees affordable.

AASP-MN extends its thanks to the following companies:

College Division 1st Place – Richard Rose, St. Cloud Community & Technical College, St. Cloud 2nd Place – Sam Peterson, St. Cloud Community & Technical College, St. Cloud 3rd Place – Samuel Priem, Hennepin Technical College, Brooklyn Park

Thank You to Our Sponsors

GOLD SPONSORS AASP National Auto Value Parts Stores/APH Autoshop Solutions Axalta Coating Systems CBIZ AiA FinishMaster Meadowbrook Insurance PPG Automotive Finishes United Fire Group

SILVER SPONSORS aaa Auto Parts Enterprise Rent-A-Car LKQ/Keystone Automotive O'Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet

BRONZE SPONSORS Advance Auto Parts C.H.E.S.S.

LEADERSHIP CONFERENCE ENTERTAINMENT SPONSOR Dent Impressions

A LA CARTE Choice Auto Rental

LEADERSHIP CONFERENCE VENDOR SPONSORS

The first place winners will go on to compete in the national SkillsUSA Championships this June in Louisville, Kentucky.

“These students are demonstrating more than just their skills; they are proving that our workforce is prepared to lead the way in every technical area our country needs to maintain a strong global economic presence,” said Jennifer Polz, SkillsUSA State Director.

“We are very proud of this talented group of students who are truly champions dedicated to excellence in their trades.”

AASP-MN News

1 Collision Network 3M Automotive Aftermarket Division AmeriPride Services Automotive Training Institute BASF Automotive Refinish Casualty Insurance of Chaska Dentsmart PDR Heartman Insurance Hertz Corporation IDENTIFIX Insurance Brokers of MN Matrix Electronic Measuring MN Dept. of Labor & Industry Monroe, Moxness, Berg, PA Net Driven Rapid Refill Safety-Kleen Sherwin-Williams Automotive Finishes

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NATIONAL NEWS

IMMIGRATION ENFORCEMENT APPLIES TO ALL EMPLOYERS, EVEN THOSE WITHOUT FOREIGN WORKERS

By Allison Wells, Wessels Sherman Joerg Liszka Laverty Seneczko P.C.

President Trump continues to make immigration enforcement a central pillar of his agenda. Just last month, DHS Secretary John Kelly called for 10,000 more immigration officers to implement President Trump's executive orders on immigration. While enforcement policies certainly affect immigrants, they also impact employers, even those who do not employ any foreign workers.

Two key tools for the government's immigration enforcement strategy - Form I-9 and Worksite Raids - are intimately related with the workplace. Used in tandem, these mechanisms could result in an employer's loss of a large segment of the workforce, crippling fines, and damage to public reputation. Employers must take precautionary action to ensure compliance with enforcement mechanisms and avoid corporate liability.

The Cost of an I-9 Violation Form I-9 is the federal government's main immigration enforcement tool. Failure to abide by regulations in completing and maintaining I-9 forms, whether intentional or inadvertent, can result in substantial fines, lost contracts, civil sanctions, and even criminal penalties. Immigration and Customs Enforcement (ICE) audits of I-9 forms are increasingly common and the associated penalties drastically increased last year. Now, more than ever, employers must position their organizations to survive an audit.

This enforcement tool is based on the immigration law that requires every employer, even those with no plans to employ foreign workers, to verify their employees' eligibility to work via form I-9.

The burden is on the employer to ensure that all employees are legally authorized to work in the United States. Failure to comply can lead to hefty penalties. In February, a New York-based construction company was fined over $150,000 for I-9 violations, which stemmed from lack of attestation by employees of their citizenship, missing signatures, and blank sections.

At the same time, employers must also be weary of engaging in inadvertent discrimination during the I-9 process. Just this month, two California janitorial companies were fined a civil penalty of $115,000 and required to compensate $30,000 to each eligible worker because of the employers' document abuse through their discriminatory practice of requiring some, but not all, workers to present specific documents for I-9 completion.

The minimum and maximum fines related to I-9 compliance are based on the type of offense and whether it is the offender's first or subsequent offense. After determining the minimum and maximum offense amount, ICE divides the number of violations by the number of employees for which a Form I-9 should have been prepared to obtain a violation percentage. This percentage provides a base fine amount. Then, ICE uses a matrix to enhance or mitigate the base fine.

The matrix factors include business size, good faith, seriousness, unauthorized aliens, history, and cumulative adjustment.

The 2016 increase of these fines demonstrates the government's increased focus on enforcing immigration laws and deterring employers from hiring unauthorized workers. Given that I-9 violations are considered continuing until corrected and that the penalties are steep, it is more important than ever that employers ensure they have comprehensive I-9 and other immigration

compliance policies and procedures in place. The best preparation for a government audit is to engage in regular internal audits with the guidance of immigration counsel.

Employer Rights in a Worksite Raid Unlike I-9 audits, Worksite Raids have not been commonly used since the Bush administration. With President Trump's hardline stance on immigration, the use of this enforcement tool is expected to increase. In early February 2017, Worksite Raids were conducted in Georgia, Illinois, New York, California, and the Carolinas. During a Worksite Raid, ICE employs elements of surprise, confusion, and intimidation, which often catch employers off guard and create chaos.

Employers should be prepared to manage the situation and assert their rights to avoid liability and protect workers.

Worksite Raids are not random. Employers that are subjected to a Worksite Raid have done something to catch ICE's attention, like utilizing unauthorized workers, engaging in unfair practices, or mistreating workers. Worksite Raids can stem from a disgruntled employee or even an I-9 audit that reveals a number of employees using fake documents.

If ICE arrives at your front door, the first step should always be to contact an immigration attorney and provide the attorney's contact information to the ICE officers. Employers should obtain the name of the supervising ICE agent and the name of the U.S. attorney assigned to the case. Remain calm and cordial in all interactions with ICE officers, but make sure you are standing up for your rights. ICE cannot legally enter a worksite without a warrant. Likewise, employers are not required to answer ICE's questions, nor should they give consent to ICE to speak with employees on the premises, unless a warrant is presented.

If ICE presents a warrant, employers should carefully review the language. If possible, immediately send a copy of the warrant to legal counsel. The warrant must be signed by the court and served within the correct timeframe. The warrant will outline a scope and the ICE officers must limit their search to the scope of the warrant.

With a valid warrant, ICE officers can enter the worksite with or without employer permission. Do not block or interfere with ICE activities. ICE agents are permitted to surround the premises, refuse departure of employees, search and seize information contained in the warrant, question company representatives, and call employees in for questioning. If ICE agents have entered your workplace, assign a company representative to follow the agents around the facility.

Record the actions on a note pad or videotape the officers. Make a list of items seized and request to make a copy before the items are taken.

If during a worksite raid, ICE discovers or learns of unauthorized workers at the work site, those workers are subject to arrest and detention. Employers have little power to protect employees.

Employers should not direct employees to speak to ICE, but cannot interfere with ICE's investigation. Do not hide employees or aid in their escape; this could result in employer liability. Employers can, however, inform employees that they have the right to talk or not talk to the ICE agents. Inform employees by disseminating resources including "know your rights" flyers and emergency preparation kits.

Remember, these items should be disseminated broadly rather than given to specific employees.

Questions? Contact Allison Wells at (952) 746-1700 or by email at alwells@wesselssherman.com.

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NATIONAL NEWS continued from pg. 9

Curated and delivered by SCRS. To subscribe, visit www.repairerdrivennews.com MITCHELL ESTIMATING SOFTWARE TO ADD FIELDS FOR ‘SPECIAL MATERIAL’ LABOR RATES In its March 30 edition, Repairer Driven News reported that Mitchell will add fields for specific substrate labor rates to its estimating software this summer.

Recognizing the boom in “special materials,” the company announced the change in its March quarterly Industry Trends Report, within a cover story examining how vehicles with special materials grew from about 3 percent of estimates in 2012 to nearly 18 percent in 2017.

Study author Hans Littooy, Mitchell vice president of consulting and professional services, said Mitchell recognized that such substrates required different skill sets and possibly additional

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charges, such as amortizing the cost of specialty equipment (for example, the aluminum gear for the current-generation F-150) with higher labor rates.

He said the company had also received requests from both the collision repair and insurance industries to have different labor rates for individual specialty materials.

“It’s a guarantee we can expect to see the continued expansion of special materials in vehicles, with projections of 90 percent growth in the use of HighStrength Steel by 2025,” Littooy wrote in the Industry Trends Report. “For appraisers, they need to be aware of these materials to ensure proper repair techniques are followed and also reflect the appropriate labor rates for those repairs. For carriers, because of the increase in severity potential for vehicles using special materials, they need to ensure policies are properly priced and claims department’s budgets reflect the increased exposure to vehicles with special materials.”

AASP-MN News

WELCOME NEW MEMBERS:

APRIL 2017 37th Street Tire & Auto Rochester Bullis Insurance Agency Wayzata Elite Auto Care Northfield Mann Motors Repair Albert Lea Matrix Electronic Measuring Systems Salina, KS Monticello Auto Body Monticello St. Michael Auto Body St. Michael Waco Repair Waconia

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Registration Deadline June 10

23rd Annual

Tuesday, June 20, 2017 Keller Golf Course 2166 Maplewood Drive St Paul, MN 55109

AASP-MN Golf Outing Fees Include: • 18 Hole Green Fees • Golf Carts • Contests _Closest to the Pin _Longest Putt _Longest Drive _and MORE! • Prizes • Social Hour/Light Dinner

12:00 p.m. Shotgun Start Check-in 11:00 a.m. - 11:30 a.m.

Four person scramble $100 per golfer/$400 per team

AASP-MN 23rd Annual Golf Outing Registration June 20, 2017 – Keller Golf Course

Name: _____________________________________ Company: ______________________________________________ Address: ___________________________________________________________________________________________ City: ________________________________________________________ Zip: __________________________________ Phone: ______________________ Fax: ______________________ Email: _____________________________________ 1st Player: 2nd Player: 3rd Player: 4th Player:

__________________________________________ Company: __________________________________________ Company: __________________________________________ Company: __________________________________________ Company:

____________________________________ ____________________________________ ____________________________________ ____________________________________

Payment Options: _____ Check enclosed. Payable to AASP-MN _____ Credit card (Visa, MasterCard, Discover & American Express accepted)

Credit card #: ______________________________________________________________________________________ Expires: ____________ CVC#: ______________ Signature: ________________________________________________ Return to:

AASP of Minnesota, 1970 Oakcrest Ave., Suite 102, Roseville, MN 55113 612- 623-1110 (ph) / 612-623-1122 (f) / aasp@aaspmn.org (e) AASP-MN News

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COVER STORY

by Nick Fernandes

AASP-MN Annual Meeting & Leadership Conference Provides Auto Service Education and Networking

On Thursday, April 13, the Doubletree Hotel in Bloomington was packed with hundreds of AASP-MN members and supporters who took advantage of a full day of training and networking at the association’s 2017 Annual Meeting & Leadership Conference.

The event offered three educational seminars, as well as an opening speech by Mark Scharenbroich (Scharenbroich & Associates, Minneapolis) and keynote speech by the renowned Mike Anderson (Collision Advice, Alexandria, VA), both grabbing the attention of attendees with their humor and life lessons. In addition, AASP-MN offered roundtable discussions, in which participants rotated from table to table discussing several different industry topics, as well as a Vendor Showcase & Social Hour, where everyone had the opportunity to speak to vendors and network with fellow industry professionals.

To open the event, Scharenbroich presented “Nice Bike: Making Meaningful Connections.” Sprinkling amusing stories throughout his presentation, the Minnesota-based motivational speaker told the audience of automotive professionals that they need to offer the customer something that their competitor will not. To illustrate, he shared the story of how a successful Chicago-based box manufacturing company sells the exact same product as its competitors, but enjoys a much higher volume of sales because it goes above and beyond with its customer service.

“What in the world does a box company have to do with auto service and collision? Everything. What can you do that your competitors won’t? It can be anything. I don’t care if it’s putting a candy bar in the car before they drive off.”

Prior to receiving an award for his year of leadership at the event’s luncheon, outgoing AASP-MN President Greg Kasel announced AASP-MN’s 2017-2018 Board of Directors: Wayne Watson (President), Will Latuff (Secretary-Treasurer), Bruce Tschida (Collision Division Director), Carl Thomas (Mechanical Division Director), Mars Overlee (Mechanical Seat), Dave Bock (Associate Division Director), Randy Notto (Mechanical Seat) and Matthew Feehan (Collision Seat). Latuff, the former Collision Division Director, and Overlee, the former Mechanical Division Director, received awards for leading their divisions last year. Jim Siegfried and Tom Gleason – who completed their terms on the Board – were recognized for their dedication to the association. Jeff Quam (JAQ’s Garage, Moorhead) was also recognized as “member recruiter of the year” for his efforts to

recruit prospective members into the association. AASP-MN Executive Director Judell Anderson then took over the podium to award Roger Bonn (Peter’s Body Shop, St. Cloud) as the third recipient of the Honorary Membership Award. Bonn retired last month after working in collision repair for 50 years and previously served as President, Secretary-Treasurer and Collision Division Director of AASP-MN. Following the awards ceremony, Mike Anderson delivered his keynote speech, focusing on the importance of taking chances in the auto service industry – and in life. The industry veteran explained that change can cause a shop to thrive, but too many shop owners are so afraid of a negative outcome that they stick to the day-to-day routine and continue to just barely survive. In an effort to eliminate the fear that shop owners have, Anderson told a story from his childhood, in which he attended dances at his church and stood in the corner by himself for three years before asking someone to dance. “I thought that if I ever asked someone, they would say no and the whole school would make fun of me. I was telling myself a negative story, but at the end of the day it was my fault that I wasn’t dancing. Ladies and gentlemen, if you’re telling yourself negative things, I have two words for you: STOP IT!” Following the popular keynote speech, attendees moved into a seminar room for “Positioning Yourself in the Collision Repair Industry,” where Anderson was joined by Raymond Chew (CCC Information Services, Chicago, IL). The two outlined a metaphor of the three-legged stool – explaining that shop owners should focus one third of their attention on sales and marketing, one third on production and one third on finance and HR. Anderson began the seminar by asking all in attendance if they would rather thrive or survive three times before getting a loud enough response of “thrive!” “If you want to thrive and not just survive as a shop owner or manager, you need to pay attention to the three-legged stool metaphor,” he then explained.

Simultaneously, Josh Dye (Convene LLC, Minneapolis) and Jeremy O’Neal (Advisorfix, Hesperia, CA) gave their own words of advice to automotive personnel. In Dye’s “Lead! Create!

How to Adapt Your Business & Thrive,” he told shop owners that procedures of the past may not be the best ones to use in today’s world.

Internationally-acclaimed speaker “Find something that will Mike Anderson engaged and educated help you thrive today.” attendees during his keynote speech.

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COVER STORY

Dye also touched on an issue that affects professionals in many industries, talking about trying something new, but never getting around to it because of the fear of disrupting the daily routine. “Pick one improvement you want to make and disrupt your routine tomorrow to implement it,” he advised. In O’Neal’s “Maintenance Profit Master,” the acclaimed service advisor performance coach and sales trainer shared secrets to maintenance sales. He stressed the importance of the quick tasks that can prevent future issues with a car. “How long would it take your technician to lubricate all the doors and hinges? An extra 10 to 15 minutes.” He also blasted the shops’ online appointment booking methods in which a representative from the shop calls the customer back the next day to confirm. He recommended that all shops switch to an automated service that confirms the appointment immediately via text message or email. “If you’re calling people back to confirm appointments, that’s old technology. Today’s consumers don’t want that.”

AASP-MN would like to thank the numerous sponsors and supporters who made the 2017 Annual Meeting & Leadership Conference possible, as well as the vendors and attendees who made this year’s event unforgettable (see full list on page 7). For more information on future association events, visit aaspmn.org.

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FEATURE STORY

Fly the Friendly Skies of Accountability

by Sam Silverstein, The Accountability Zone™- www.samsilverstein.com

We’ve all seen the online videos of the person being dragged off of the United Airlines flight recently. It looked terrible. It was terrible.

There are several issues at play here that show a lack of accountability.

The first is the decision to drag a person off of a flight. When the airline offered $800 to passengers to give up their seat and it wasn’t taken, the next move would have been to offer $1,000, $1,200 or more. If the airline sold the seats and then needs them back, the airline should realize that they are responsible to make it right, not the customer.

Second, who decided to drag the person off of the airplane?

Who decided that there were not any other solutions? Which United employees stood around and didn’t interject and say, “This isn’t how we do things here?” In an organization with a culture that encourages accountability, all employees help their teammates be accountable.

Third, there was the problem with the first statement from the CEO. When a leader’s first stance is to go defensive rather than look at the facts and try and figure out where they went

wrong, the outcome is rarely positive. Accountable leaders always get all the facts before they comment. They also look first to where they or the people they lead may have gone wrong.

A second apology for a problem always lacks credibility.

The reason this situation happened in the first place is because there isn’t a clear set of values that are understood and lived by all United employees. If there were, they would have known how to handle the situation. Those values would say how people are supposed to act, how they should work together, how they should treat customers, what excellence is inside of that organization, what character looks like and how they serve the community they do business in.

The clarity of a well defined and established set of values helps everyone make consistent decisions, strive to be accountable to each other and ultimately make sure that when they are in the news, it is for a positive example of how accountability thrives inside of their organization.

Sam Silverstein was the keynote speaker at the 2016 AASP-MN Annual Meeting & Leadership Conference.

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CASH IN ON YOUR MEMBERSHIP!

These Bankcard Sales People Are Driving Me Nuts!

Let’s face it: Bankcard processors love automotive repair shops because of the large sale amounts. They’d much rather accept one of your $500 sales than 100 coffee shop sales worth five dollars each. That’s why you have so many sales people constantly calling. Each one claims they can save you money when they don’t even know what you’re paying right now. Very interesting!

It’s hard to know if you’re being offered a good deal without understanding the basics of bankcard pricing. To say the least, with all the variations of cents, percents, monthly fees and annual fees, it’s no wonder most shop owners set their statement aside and only hope they’re getting the best deal. How, then, can you tell if the next person who calls has a better offer?

First, it’s helpful to understand all three elements of bankcard pricing, the first two of which you can do nothing about.

1. Interchange: This is what the bank that issued the credit or debit card to your customer receives and it’s the largest part of your monthly cost. Each card type (Rewards, Debit, Traditional, Business, Hand-Keyed, etc.) has a different Interchange fee. Literally, there are hundreds of card types, each with their own specific Interchange amount. There is nothing you can do about Interchange.

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2. Assessments: Like Interchange, there’s nothing you can do here. With all of the banks that issue credit and debit cards, something needs to tie them together and standardize the pricing.

That’s where Visa, MasterCard, and Discover come in and their fees, called assessments, range from 0.11 percent to 0.13 percent.

3. Bankcard Processors: Here’s where you can save some money. First though, know it’s the processor that does the work; everything from approving the sale to transferring the money to your account. Among other things, they also host the call center and provide your monthly statement.

Rather than having a bankcard telemarketer insist he or she can reduce your expense, this is your chance to take charge of the conversation and ask some pertinent questions. The basis of each is “How much do you charge over cost (Interchange and Assessments)?”

Here are some “over cost” questions to ask: • What percentage do you, as the processor, add to the sale amount?

• How much is your authorization charge?

• What about flat monthly fees (Statement fee, Data Compliance, any others)?

• Do you have a batch closing fee?

• Are there any annual fees?

• Do I have to buy new equipment? If so, what’s the price?

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If you can get those answers from both your current processor and from whoever wants to be your processor, you will be able to compare apples to apples and make a good decision.

You will also want to know how long the contract runs, and more importantly, if you can get out at any time with no early termination fees.

Equipment is another issue, especially with chip cards. Find out if the potential processor requires the purchase of a new terminal. Or, if you are processing through a point-of-sale system, ask if you will need new software. When it comes to leasing, especially standalone terminals, be very cautious.

Most often, these are non-cancellable fouryear leases in which you will pay many times what an outright purchase would cost. Generally, these are bad, bad deals and there is no way out of the 48 monthly payments.

If you have questions, want more information or would like to see if AASP-MN’s bankcard service can save you money, please contact Mac Hardin at 800-999-4399, or by email at mach@retailfinancialservices.biz.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Brad Schmid 763-549-2247 / bschmid@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: Brad Schmid 763-549-2247 / bschmid@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. Ask about our program with United Fire Group!

EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, longterm 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 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.

WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up).

Net Driven Contact: Rich Mullen 877-860-2005, ext. 224 / rmullen@netdriven.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.

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.

AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aaiassessment.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.

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.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit.

CHECK GUARANTEE SERVICES Certegy Check Services Contact: Amy McKay 727-385-7812 / amy.mckay@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

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

SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.

INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE and Teamworks products. For more information, contact Customer Service at 888-724-6742, ext.

6986.

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BUSINESS COACHING 180biz 540-833-2014 / info@180biz.com Website: www.180biz.com Members receive a 20-percent discount on oneon-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments.

Members also receive a 25-percent discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.

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.

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