Lube+ Premier Issue by Surface & Panel

S P R I NG 2 016

TH E MAGA Z I NE OF TH E AU TOMOTI V E OI L CH A NG E A SSOCI ATION

IN THIS ISSUE:

Personality Plus Tuan and Holly Dàm’s Pennzoil Plus Quick Lube Center MARKETING: REGULATIONS:

Website Marketing Tips

Transmission Service Chaos Fast Track to Success Mike Palmisano's Fast Track Oil Change Centers

INSURANCE:

Investing in Key Employees

HUMAN RESOURCES:

Questions NOT to Ask

+ Pertinent Content from AOCA

MESSAGE FROM THE PRESIDENT

LUBE IS ANOTHER VALUABLE TOOL FOR QUICK LUBE OPERATORS Greetings from Magnolia, Arkansas, the home of the “World Championship Ribeye Steak Cook Off” and the worldwide headquarters of Oil & Lube Express. For those of you who don’t know where Magnolia is located, we are just about an hour west of Smackover, Arkansas. It is with great pleasure that I introduce the Automotive Oil Change Association’s LUBE+ magazine. When I bought my shop eight years ago, AOCA published a small quarterly newsletter called Oil Changing Times. I really enjoyed getting my copy of Oil Changing Times. After reading it, I would leave it out for my employees to read. I liked the old-fashioned hard copy. A couple years later, in an effort to cut costs, AOCA switched Oil Changing Times to a digital format. In other words, it was sent as an email. I really didn’t like this. More often than not, I would delete it in a mass junk email purge. I don’t spend a great deal of time reading email.

“Our goal with LUBE+ is to be a valuable resource for owners and operators that goes beyond the latest technical issues.”

One day on a call with board members, Bryan White, the executive director of AOCA, mentioned the idea of publishing a magazine for our association. We all agreed to pursue this idea. As a result, we have a nice publication that has taken the former Oil Changing Times from an email blast to this professionally done magazine dedicated to our association and industry. Our goal with LUBE+ is to be a valuable resource for owners and operators that goes beyond the latest technical issues. We want to provide assistance with the other aspects of owning and operating a quick lube. Consider it as an educational aid for issues such as human resource problems, financial planning, budgeting, cash flow and expanding business and services. LUBE+ will be your resource for the do’s and don’ts of running a business while offering access to training on a variety of topics. The timing of the launch of LUBE+ couldn’t be better. As we slowly recover from a terrible economy, we have a great opportunity to grow and expand our businesses and services. However, I have learned one can only be successful given the right tools. I believe LUBE+ will be an important tool to help make your business stronger. For those of you who are receiving this issue of LUBE+ who are not members of the Automotive Oil Change Association, I would strongly encourage you to not just become members but become active and involved members. As a single shop operator, I depend on AOCA as my lifeline to the tools and information I need to run my business. Now with LUBE+, I have one more valuable tool in my AOCA toolbox. W W W. AOCA .ORG

Here’s to a GREAT 2016! Respectfully,

David Haney AOCA PRESIDENT

OIL & LUBE EXPRESS

DHANEY3283 @ GMAIL .COM LUBE+ S P R I N G

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COLUMNISTS

David Haney President, Oil & Lube Express dhaney3283@gmail.com

SPRING 2016

THE MAGAZINE OF THE AUTOMOTIVE OIL CHANGE ASSOCIATION

C O N T E N T S

Joanna Johnson President, Johnson Policy Associates, Inc. jlj4policy@gmail.com

Lauri Steeland Director of Sales & Marketing, PISTN lsteeland@pistn.com

Claudia St. John President, Affinity HR Group LLC claudia@affinityhrgroup.com

Jack West National Account Executive Federated Insurance jewest@fedins.com

Bryan White Executive Director, AOCA bwhite@aoca.org P U B L I S H I N G S TA F F PUBLISHER

John Aufderhaar Bedford Falls Communications jaufderhaar@surfaceandpanel.com EDITORIAL DIRECTOR

Scott W. Angus Bedford Falls Communications scottangus47@gmail.com AD SALES

FROM THE PRESIDENT AOCA's president, David Haney, introduces the premiere issue

of LUBE+ magazine and invites readers to discover the benefits of membership in AOCA.

PERSONALITY PLUS Relationships, quality services keep customers coming back to

Tuan and Holly Dàm’s Pennzoil Plus Quick Lube Center.

MARKETING Website marketing: First impressions matter, but so does what comes after.

REGULATIONS Will transmission service be a viable option for fast lubes in 2017?

AOCA How to create a customer-centric workplace.

FAST TRACK TO SUCCESS After 31 years, Mike Palmisano is still enthused and making plans for his chain of Fast Track Oil Change Centers.

INSURANCE Make the most of your investment in key employees.

AOCA An industry effort to protect consumers needs your help.

HUMAN RESOURCES Questions NOT to ask during interviews.

AOCA SURVEY SAYS ... Customer service, marketing drive most traffic.

AOCA Board of Directors, staff listing and contacts, AOCA mission statement.

FROM THE EXECUTIVE DIRECTOR Bryan White discusses how the AOCA is

expanding offerings and benefits to help members improve operations.

Ryan Wagner Bedford Falls Communications rwagner@bedfordfallsmedia.com GRAPHIC DESIGN

Karen Leno KML Design, Inc. kmldesign@mchsi.com

ON THE COVER

This operator profile features Tuan and Holly Dàm’s Pennzoil Plus Quick Lube Center in Oak Creek, Wis.

LUBE+ is published on behalf of AOCA, the Automotive Oil Change Association, headquartered at 330 N. Wabash Ave., Suite 2000, Chicago, IL 60611. Toll-free: 800.230.0702 or 312.321.5132, Fax: 312.673.6832, email: info@aoca.org. © 2016 Bedford Falls Communications, Inc. 302 N. 3rd St., Watertown, WI 53094 PH: 920.261.1947

OPER ATOR PROFILE Pennzoil Plus Quick Lube Center OWNERS: LOCATION:

Tuan and Holly Dàm

9043 S. Howell Avenue, Oak Creek, Wis. YEARS IN BUSINESS:

NUMBER OF LOCATIONS:

SECRETS TO SUCCESS: Quality Service • Customer Relationships

PERSONALITY PLUS AUTOMOTIVE OIL CHANGE ASSOCIATION

B Y S C O T T W. A N G U S

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RELATIONSHIPS, QUALITY SERVICES KEEP BRINGING CUSTOMERS BACK

W W W. AOCA .ORG

uan and Holly Dàm’s Pennzoil Plus Quick Lube Center isn’t the cheapest place to get your oil changed in the suburbs south of Milwaukee. The Dàms, however, believe their service is worth every extra penny. Apparently, so do their customers. “How do we compete?” Tuan asked before answering his own question. “We have better service. We’re not the cheapest, but it’s the relationships with our customers and the level of service.” The Dàms have been in business for 16 years on Howell Avenue in Oak Creek. Tuan was “a wrencher” who had worked in a number of car shops and other businesses, while Holly worked for an environmental consulting firm. They invested nearly every dime they had and cast their lot with Pennzoil. They have never looked back, and they are as enthused about their business today as when they first opened their oversized doors. The quick lube is affiliated with Pennzoil, which brings name recognition and quality products, but the Dàms are independent owners and offer a variety of brands. “The name Pennzoil means a lot,” Tuan said. CONTINUED ON PAGE 8 ➤

“

IT’S ALL ABOUT THE CONVERSATION. YOU HAVE TO MAKE THAT CONNECTION.

AUTOMOTIVE OIL CHANGE ASSOCIATION

➤ CONTINUED FROM PAGE 7

Traffic was good from the start, and the Dàms averaged 75 cars a day not long after they opened. The car count peaked at about 100 on busy Saturdays. Then the economy tanked in 2008, and rising oil costs and longer oilchange intervals took their toll. Today, their maximum car count is about 50. “Where we used to see people four times a year, now we see them three or even two,” Tuan said. Pennzoil Plus moved into areas beyond oil changes and related services associated with a quick lube. As they added services, they added dollars to the average ticket, which is now about $70, with a standard oil change and related services at about $40. “This business needed to reinvent itself. We needed to do more,” he said. “We have to be able to do the easy stuff. We have to be able to diagnose a basic problem and fix it.” CONTINUED ON PAGE 10 ➤

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TUA N DÀ M

”

Please make it home safe today.

We believe you deserve more than just insurance. You deserve valuable risk management tools—like the “What is Important to You?” distracted driving prevention program—designed to help you and your employees make it home safe today. Federated provides clients with access to services offered through wholly independent third parties. Neither Federated nor its employees provide legal advice.

“

THE CUSTOMER NEEDS TO KNOW THAT WHATEVER THEY NEED, IT’S COVERED. HOLLY DÀ M

AUTOMOTIVE OIL CHANGE ASSOCIATION

➤ CONTINUED FROM PAGE 8

Added Holly: “The customer needs to know that whatever they need, it’s covered.” Among other things, Pennzoil Plus does general tune-ups and brakes, services batteries, charges air conditioning units, changes serpentine belts and offers full tire service, including new tires, which it buys on demand from a center down the road. Pennzoil Plus has three bays, and Tuan wouldn’t have it any other way. The third bay, he noted, is for service work, while the other two handle quick lube customers. The operation also benefits from a nifty relationship with a good friend’s full-service garage just down the road. If anything is beyond what Pennzoil Plus can handle, such as a front-end alignment or serious transmission work, Tuan drives the car to the other shop and gets priority treatment. The car typically is back at Tuan’s place before the customer returns, and the customer gets one bill from Pennzoil Plus. Tuan never wants to turn a customer away. If a vehicle has a gas engine, he finds a way to work on it. The shop takes virtually all makes and models and even installed 14-foot doors to allow for bigger trucks and recreational vehicles.

“Before I built this, I went around looking at other places, and I saw a couple of them turn down these trucks. I thought, ‘I don’t want to turn away a customer.’ So we do the big stuff. That’s a $90 oil change,” Tuan said. While Pennzoil Plus has expanded into other services, Tuan repeatedly emphasized the need for a quick lube business to be a quick lube business. It must be fast, and it must provide the basic services at a consistently high quality. “People can go many places to get their oil changed or work done, but they come to us because we’re fast, and then we take care of the other things,” he said. “You have to be true to who you are.” Even now, the quick lube part of the business – which includes wiper blades, fluid topoffs and other related services – brings in about 80 percent of the business’s revenue. Pennzoil Plus has five employees in addition to Tuan and Holly, and the owners acknowledged that it’s hard to find and keep good employees. They have a strong crew now, though, and they believe their family atmosphere is good for retention. They train their employees in house, starting new workers in basic jobs and gradually CONTINUED ON PAGE 12 ➤

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”

➤ CONTINUED FROM PAGE 10

ACCESSIBILITY, NEARBY STORE HELP DRIVE TRAFFIC LOCATION • LOCATION • LOCATION

hat old real estate mantra applies in every

way to quick lubes, said Tuan Dàm, co-owner of Pennzoil Plus in Oak Creek, Wisconsin. Tuan and his wife, Holly, opened their business 16

years ago on a visible and accessible front lot along busy Howell Avenue. Customers can see and get to the business easily. “That’s critical,” Tuan said. As important, however, is the Kohl’s Department Store just a few hundred yards away that anchors the retail development. The store was there when Pennzoil Plus opened, and it helps bring customers to the quick lube. “We already had the traffic,” Tuan said of the Kohl’s customers who were coming to the site when

AUTOMOTIVE OIL CHANGE ASSOCIATION

his store opened. “We just needed to get them to

stop at our place and then give them the kind of service that would bring them back.” Tuan said it works for both sides when a customer who needs more than an oil change drops off a car and walks to Kohl’s for an hour or two of shopping while the vehicle gets serviced. “The customer isn’t looking over our shoulders making everyone nervous, and their car is ready when they come back. The time goes quickly for them and us.” The area has grown considerably in 16 years, and additional stores and restaurants now offer more options for Pennzoil Plus’s customers. “You’ve got to look around when you’re choosing a location,” Tuan said. “We couldn’t be happier.” ➤

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allowing them to move into more complicated work. While Pennzoil Plus’s quality contributes to the high level of loyalty – 68 percent of business comes from returnees – the relationships that Tuan forges with customers set this shop apart. “It’s all about the conversation. You have to make that connection,” said Tuan, who can’t stay in his office when a customer arrives. “He can’t help himself. When a customer comes in, he’s got to go talk and help,” Holly said. Tuan is a self-proclaimed car guy who owns 17 cars, and he loves to chat with fellow car lovers. His stable includes a 1970 Mustang, a 1970 Chevelle SS, a 1972 Dodge Challenger and a 1969 Corvette Roadster. On a recent morning, Rich Behling of Oak Creek pulled in with his 2004 canary-yellow Corvette, and it wasn’t long before he and Tuan were swapping information and stories. Behling said he trusts Pennzoil Plus with his prized car and also appreciates the shop’s efficiency and convenient location, which he passes regularly. “I know I can get in there quick, and they do a good job,” Behling said. “Plus, Tuan’s got a Corvette, too, and we like to talk cars.” Tuan likens his place to a barber shop, where customers come almost as much for friendship and conversation as for services. Tuan has been to patrons’ weddings, funerals and parties, and he has longtime customers who have moved away but visit – and often get their cars serviced – when they are back in the area. The Dàms freely admitted that not every job goes perfectly, but mistakes are infrequent, and they go above and beyond to make up for them. Tuan has been known to drive to a customer’s house to wipe up oil in a driveway if Pennzoil Plus’s work was responsible for the spill. Pennzoil Plus has a basic website, and it has a Facebook page that gets updated several times a month. But Tuan and Holly credited regular email blasts managed by a third party as the most effective marketing. The emails, which go out once or twice a month, include coupons and deals to entice customers to return. The Dàms have been members of the Automotive Oil Change Association since they opened, and they have attended the group’s annual conferences. They appreciate the support and resources. “It’s been a real positive,” Tuan said of AOCA. The Dàms have considered expansion but rejected it for a basic reason: Tuan can be in only one place at a time. “We’d have to duplicate him because he is so much a part of who we are and the reason that people come to our business,” Holly said. Plus, Tuan added, “you can do well with one shop, but your heart has to be in it.” The Dàms are happy with their success with a single quick lube. They see that success every day in many ways, but Tuan has an especially clear definition, and it goes back to those relationships. “Success is when a customer drops off their vehicle and tells us to fix whatever is needed. And when they come back to pay the bill, they don’t blink an eye. They simply say, ‘Thanks for a good job.’” That’s trust, and that’s success. L+

194 OCATIONS E L C N 4 I 6 S D E S A H 4 C 1 R 0 PU UARY 2 JAN S E B U ICK L

U Q Y U EB

r o / d n ea l g n i s g W n + i 0 k 0 e 5 e 7 s s g i n i e o n i d l o s v ion Val t a r. c a o l e y e l r p e i p s e mult g n oil cha ntact: Co illin M c M Gayle -7303 7 859-35 hland.com in@as Lubes.com l l i m c lgm ick u Q e n i alvol V . w w w and or its

ark, Ashl

™Tradem

M A R K E T I NG |

FROM THE LUBE+ EXPERTS

WEBSITE MARKETING:

FIRST IMPRESSIONS MATTER, BUT SO DOES WHAT COMES AFTER BY LAURI STEELAND PISTN: MARKETING ACCELERATED

➔

Make sure that your website includes a clear description of the services that you offer and a clean and professional image of your quick lube service center.

We live in a fast-paced world with dozens of things competing for our attention at all times. The prevalence of social media and the increasing speed of the internet, along with the ever-dwindling attention span of most people, means you don’t have long to attract and keep the attention of current and potential customers.

1. FIRST IMPRESSIONS ARE EVERYTHING. Your website is more than just a roadside sign; it’s your quick lube service center’s personality. Make sure that your website includes a clear description of the services that you offer and a clean and professional image of your quick lube service center.

In fact, no matter how much thought you put into your website, studies show that it will be wasted if your customers don’t find what they want to know within the first 10 or 20 seconds of visiting it. That’s why it’s essential for your website to be built right. It has to be written and designed in a way that puts the most pertinent information up front and center.

2. MAKE NAVIGATING THROUGH YOUR WEBSITE EASY. Your website can be visually creative and enticing, but if viewers aren’t able to easily navigate through it to find what they are looking for, you’ll lose them. In addition to making the site easy to navigate, limit the number of links your customers need to click to get their information. 3. CLEARLY DISPLAY YOUR CONTACT INFORMATION. Make it easy for people to

contact you by prominently and consistently displaying your business name, physical address and phone number on every page of your website. 4. WHAT’S IN IT FOR THEM? Now that you’ve got your potential customers’ attention, give them an additional incentive to do business with you. Make sure that your current specials and offers are front and center. Set up offers so they can easily be downloaded or printed.

AUTOMOTIVE OIL CHANGE ASSOCIATION

Here are tips on how to design an effective and attractive website that will turn Internet searchers into customers:

5. IS YOUR WEBSITE MOBILE OPTIMIZED? Having a mobile-friendly website can be a critical tool to your business’s success. In April 2015, Google announced it was rolling out a mobile-friendly update. This means that Google is now boosting the ranking of mobilefriendly pages on mobile search results. If your website isn’t mobile-friendly, you may miss out on valuable mobile traffic.

Now that you have your current and potential customers’ attention while they are visiting your website, take the opportunity to capture valuable information from them. LUBE+ S P R I N G

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FROM THE LUBE+ EXPERTS

Gone are the days of websites serving as online brochures with no marketing functionality. Make sure that your website has important functionality that allows you to communicate with your customers. Here are important tips for maximizing your website’s functionality to meet your marketing goals: 1. CAPTURE CUSTOMER INFORMATION FOR YOUR REMARKETING EFFORTS. Gather

information from your customers so you can market your business back to them. You’ll be more successful in gathering their contact information such as addresses, email addresses or cell phone numbers if you offer them an incentive in exchange for providing their contact information.

your online reputation is? Is your business accurately listed on all applicable online directories? Make sure your website has links directly to important business listings on the top online directories. Respond and manage customer reviews on those directories as necessary.

Use your website to integrate technology and your business’s marketing goals.

2. MANAGE YOUR ONLINE REPUTATION. Your online reputation should be a top priority. Consumers use a business’s customer reviews as a critical component in their decision making. Do you know what

| M A R K E T I NG

3. ENGAGE YOUR CUSTOMER. Make sure

that your customers have an opportunity to interact with your business. Allow them the ability to schedule appointments, request service quotes, contact you with questions, sign up for a newsletter or print out a coupon offer. These days, shopping for a product or service is all about convenience and knowledge. The more convenient you can make a searcher’s experience, the more likely you will turn that person into a customer. Remember, your website is one of your most valuable marketing tools and the foundation of your online presence. Managing it effectively can help you stand out from your competition and increase your business. L+

Lauri Steeland is director of sales and marketing at PISTN: Marketing Accelerated. To learn more about how you can create an effective website that will help grow your business, contact Lauri at Lsteeland@pistn. com, 800-742-4511 Ext. 103 or visit www.pistn.com.

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R E G U L AT ION S |

FROM THE LUBE+ EXPERTS

AUTOMOTIVE OIL CHANGE ASSOCIATION

Joanna L. Johnson has represented AOCA since 1991. She is the president of Johnson Policy Associates, a consulting firm that specializes in win-win strategies for environmental, transportation, competition, consumer protection and safety issues. She has developed many regulatory solutions for fast lubes, including the CERCLA Service Station Dealer Exemption Application Process and the Fast Lube Self-Certified Oil Spill Prevention Plan. She can be reached at 515.991.4971 or jlj4policy@gmail.com

BY JOANNA L . JOHNSON JOHNSON POLICY ASSOCIATES

A panel of leading transmission fluid manufacturers and distributors were invited to AOCA’s iFLEX convention in Nashville in May to tackle the chaos being created by state regulators over performance claims. If that subject seems too far removed from the installer level to affect fast lube operators, think again.

and measures (W&M) regulations, which are intended to prevent misrepresentation. Simply put, customers should get what they order. A customer who orders a salad has the right to refuse the delivery of french fries. Fries aren’t salad, but you don’t need W&M for that because everyone can tell the difference.

The performance claims at issue include information required on fast lube tank and reel labels and customer receipts, as well as packaged products. A manufacturer’s guarantee that its product works only protects an operator if something goes wrong with a customer’s transmission. It means nothing against a state regulator’s citation against an operator for using a product associated with unlawful performance claims.

The most commonly recognized W&M scenario is the gas pump. If a customer pumps 10 gallons of premium gasoline, the pump must actually deliver 10 gallons of premium, not 9.8 gallons of a lower octane fuel. W&M regulators test both the pumps and the gasoline to ensure the quantity and quality of the gasoline product delivered. Few would argue against this practice because consumers have neither the equipment nor expertise to test pumps and gasoline themselves.

In this case, we’re dealing with state weights

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WILL TRANSMISSION SERVICE BE A VIABLE OPTION FOR FAST LUBES IN 2017?

CONTINUED ON PAGE 18 ➤

• INCREASES HORSEPOWER • INCREASES TORQUE • BOOSTS CETANE • FIGHTS GEL FORMATION • CLEANS & LUBRICATES • REDUCES KNOCK & SMOKE Call Crystal Toll-Free: 877.290.3950 www.SolidStart.biz

R E G U L AT ION S |

FROM THE LUBE+ EXPERTS

Although lubricant manufacturers have taken one important step to educate regulators about transmission fluid standards, operators need to understand that state W&M regulators — especially in California — may continue to challenge “universal” and “multi-use” fluids and “converter” additives unless the regulations are amended.

➤ CONTINUED FROM PAGE 16

When W&M regulators turned their attention to the quality of transmission fluid, however, things got sticky. As you may recall, AOCA worked with the National Conference on Weights and Measures (NCWM) for several years to amend its engine oil labeling and receipt regulations to ensure that all legitimate engine oils were recognized, including those approved by ACEA and automakers with or without American Petroleum Institute (API) licensing. With those recognized organizations setting and policing quality, W&M regulators focus on the basics such as testing viscosity and ensuring labels and receipts report approved quality – a.k.a. performance claims – accurately; e.g., Brand 5W20 API SN.

AUTOMOTIVE OIL CHANGE ASSOCIATION

Although engine oil and transmission fluid manufacturing, distribution and installation seem parallel for regulatory purposes, one key element is missing. No national organization has an approval system for transmission fluid. Without such third-party verification, W&M regulators decided to designate automakers as the authority on setting quality and themselves as the quality police.

Until very recently, NCWM hadn’t heard from lubricant manufacturers about the practical necessity and value of the longstanding “suitable for use” performance claim associated with multi-vehicle transmission fluids. That is why products with names and/or performance claims including the words “universal” and/ or “multi-use” have come under intense scrutiny over the past year. Although lubricant manufacturers have taken one important step to educate regulators about transmission fluid standards, operators need to understand that state W&M regulators — especially in California — may continue to challenge “universal” and “multi-use” LUBE+ S P R I N G

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fluids and “converter” additives unless the regulations are amended. The existing national W&M standard adopted by NCWM appears in NIST Handbook 130, Uniform Fuels & Automotive Lubricants Regulation Chapter 2.14 (effective 2005). In summary:

• ATF sold without limitation (“universal”)

must meet all automotive manufacturers’ recommended requirements for transmissions in general use in the state, and they must all be listed on the label.

• ATF intended for certain transmissions as disclosed on label must meet the latest automotive manufacturers’ recommended requirements for those transmissions. Note: “Latest” has been interpreted to penalize any product that includes even one older specification.

• Any ATF additives must be compatible with the base ATF and meet all performance claims on the label.

Although not all states have adopted NIST Handbook 130, they may all refer to it in enforcement situations. AOCA is working with the API and the Independent Lubricant Manufacturers Association to promote the amendments necessary to change the regulation to recognize the “suitable for use” performance claim and thereby end discrimination against non-OEM products. In the meantime, AOCA urges fast lube operators to talk to the manufacturers and distributors of the transmission-related products they buy. If the products aren’t OEM-licensed, will the distributor and manufacturer defend installers in the event of a state W&M regulatory challenge? Are they supporting AOCA and actively working with NCWM and individual state agencies to ensure that these regulations do not become a de facto ban on non-OEMlicensed ATF products? L+

Acquiring & Retaining

Your Best Prospects

As the leader of one of the fastest growing small businesses in the country, I am constantly challenged with how company earnings should be reinvested for maximum growth overall. There are many marketing avenues for reaching your target audience. I would suggest using a variety of marketing channels to communicate. Finding the right marketing mix for your business may take some trial and error but here is a look at a few new and old methods I use.

AUTOMOTIVE OIL CHANGE ASSOCIATION

Tim Ross is the President of Mudlick Mail. He has 15+ years of automotive service sales and marketing experience. Tim holds a Bachelor of Science from the University of Dayton. He has spent the last eight years building Mudlick Mail into one of the fastest growing companies in the USA! Under his leadership, the company has grown at least thirty-percent year over year. Mudlick Mail specializes in automotive service marketing and has partnered with thousands of shops in North America to develop sustainable sales growth. Tim hosts a series of learning webinars for shop owners, covering a range of topics on front counter responsibilities, operations and marketing. Visit Automotive.MudlickMail.com for FREE shop owner resources and tools.

Direct Mail: Direct Mail is by far the best method for acquiring new customers. The power of direct mail in growing car count is unparalleled. Direct Mail offers a targeted approach by allowing you to get your message and offer in front of your most profitable, long-term customers. According to the Direct Marketing Association, the read rates on direct mail postcards are 56 percent. To achieve high response rates, you must include a strong call to action and make it visually compelling. It is important to use professional designers to help build your business credibility. The other big benefit of direct mail is the ability to track calls and measure the effectiveness of your campaign. You should only consider a provider that offers a variety of tracking tools to help you measure your campaigns. Direct mail tracking has become very sophisticated providing analytics such as:

Æ number of call responses, Æ call conversation analysis for training purposes,

Æ new customer acquisition rates, Æ estimated customer lifetime value, Æ market penetration rates and so much more.

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Email Marketing: Every business needs an offline and online marketing strategy. A well planned and versatile approach allows multiple touchpoints to promote seasonal offers and any special incentives to stay top of mind. 67% of online searches are driven by offline messages, according to the 2015 Direct Marketing Association Factbook. We plan our email marketing around when our direct mail advertising is set to hit mailboxes. Timing of emails and direct mail should be in-sync, as well as the design and messaging of each. To optimize response rates, consumers should be able to recognize the similarity and make the brand connection. Using a combination of marketing tactics has allowed me to grow our company revenue and maintain solid retention rates year over year! To stand apart and sustain sales growth, it is critical to have a plan of action for new customer acquisition and retention. Success derives from managing acquisition and retention as two distinct efforts. Although you manage the two separately, each should be executed with the goal of maximizing impressions building your market area dominance. L+

TRANSFORMING

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INT E L L I

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CUSTOMER RETENTION

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RESULTS WITH THE MUDLICK 360 CUSTOMER RETENTION PROGRAM

365

11.2%

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HOW TO CREATE A CUSTOMER-CENTRIC WORKPLACE BY THE AOCA

AUTOMOTIVE OIL CHANGE ASSOCIATION

“The customer is always right” might be an adage, but its meaning holds true in any industry today. So how can you make sure that you’re providing great value for the customers you encounter every day? Roselyn Connor of international training and consulting firm Brandon & Connor Associates (www.roselynconnor.com) shares her insight on providing optimal customer experiences, from identifying your client’s unmet needs to creating a workplace culture that exudes customer service.

Q. How should business owners in a customer-centric industry, such as the automotive industry, prepare and train their employees to properly communicate with customers on a daily basis? A. The fact that you are concerned about this is already a benefit to your customers. Communication creates a relationship. Successful businesses have relationships with their customers. Start by asking yourself this: What grade would I give my staff’s communication level

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with our customers? Have they earned an “A” or something much lower? How much room for improvement is there? Do we have dissatisfied customers? And are they legitimately dissatisfied? How many dissatisfied customers does it take before we need to implement training? Don’t wait until you have irate customers before you build a training program. Training in communication and customer service must be ongoing. If it’s a regular part of your employee’s job, it won’t be seen as either punishment or as reactive. The more emphasis you put on it, the more your employees will see it as an expected part of their day-to-day service. Develop and print a list of objectives to achieve with each customer. Distribute these to your employees and to your customers. Ask for feedback. While people are waiting for their oil change, give them a brief five-question survey, asking what kind of communication they want. Make it specific. Ask them first for a general grade and request recommendations for improvements. Fold that information into your training program. CONTINUED ON PAGE 34 ➤

AOCA BY THE

NUMBERS 3,500

WHO IS THE AUTOMOTIVE OIL CHANGE ASSOCIATION?

Quick lubes represented across all 50 states, Canada and Mexico

AOCA is the only non-profit trade organization representing the convenient automotive service industry. AOCA is dedicated to: • Enhancing the competency of fast lube owners • Educating the public about the benefits of preventive automotive maintenance • Maintaining a favorable business environment for the industry

500+ Operators 100+ Vendors

600+ 60+

Members

Products in the AOCA Store

10+ Free Tools

300 3

Management Certification Courses

12 20+

Fast Lube Owners and Operators at the International Fast Lube Expo

Monthly Government Affairs Updates

Discount Programs Through Strategic Partnerships

On-demand Lessons in the AOCA Online Technician Academy

Join now at www.aoca.org

OPER ATOR PROFILE Fast Track Oil Change Centers OWNER:

Mike Palmisano

LOCATION: 12 in the greater Milwaukee area (Palmisano also

co-owns 13 Mobil 1 Lube Express stores in northern Wisconsin and one in Menomonee Falls). YEARS IN BUSINESS: NUMBER OF BAYS:

SECRETS TO SUCCESS:

2 or 3

Cleanliness

AUTOMOTIVE OIL CHANGE ASSOCIATION

• Extra Level of Customer Service • Lean Operation

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FAST TRACK TO SUCCESS

AFTER 31 YEARS, OWNER STILL ENTHUSED AND MAKING PLANS B Y S C O T T W. A N G U S

W W W. AOCA .ORG

ike Palmisano beams when he looks at the drawing of his next quick lube sitting on the desk in his office. Palmisano already owns all or part of 26 shops, but it’s the one on the drawing board that has him especially excited on this warm spring day in southeastern Wisconsin. This one is different. It has an inviting coffee shop attached, and it has bright new offices for him and his corporate staff upstairs. It’s also just a few minutes from his home in Mukwonago, which is about 25 miles from Milwaukee, where his current office is located in the basement of his South 27th Street shop. The quick lube business has been good to Palmisano, whose holdings include 12 independently owned Fast Track Oil Change Centers in the Milwaukee area and 14 Mobil 1 Lube Express stores that he co-owns, all but one of which are in the northern part of the state. CONTINUED ON PAGE 26 ➤ LUBE+ S P R I N G

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STAFF LEVELS, TRAINING KEY COMPONENTS OF QUICK LUBE EFFICIENCY

s with any business, one key to success at a quick lube is

having the right number of employees on duty at all times. Too many employees, and you pay people to stand around. Too few employees, and customer service suffers. Mike Palmisano, owner of 12 Fast Track Oil Change Centers in the Milwaukee area, said it took him awhile to get the balance right. After 31 years in the business, he thinks he has it down thanks to computer software that keeps track of his busy and slow times.

➤ CONTINUED FROM PAGE 25

“For example, we know that our busy time will be from 10 to 12, and as we get later in the day, our peak time is going to be between 3 and 5 o’clock,” Palmisano said. The software projects traffic based on time of day, day of the week, season and weather and considers holidays and other factors, he said. ‘”We can make sure we’re staffing the store properly for our customers. We used to do it all by hand, and this works much better.” Fast Track relies on an in-house training program to ensure that those employees get the job done. District managers and managers administer progressive written and skills tests to employees, and those who pass earn Fast Track certification. The program typically takes from three to six months. Many of his employees come through personal referrals from other workers, and Fast Track also uses websites, print ads and job fairs.

AUTOMOTIVE OIL CHANGE ASSOCIATION

“We do whatever it takes,” Palmisano said. ➤

Mike Palmisano (right) knows the value of staffing the right employee at the right time.

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Palmisano hopes to break ground on the new store in a few months and finish it this fall. When the newest Fast Track opens, Palmisano and his crew will rely on the same formula that has brought them success at his other locations: basic service done quickly and special attention to making customers feel comfortable. “It’s worked for us. We’ve done well,” Palmisano said. Palmisano went to technical school for mechanical drafting and auto mechanics and was recruited to be a partner with a father-son team who wanted to build some of the area’s first quick lubes in the mid-1980s. They put up nine Fast Tracks in the greater Milwaukee area. After the father died, Palmisano bought out the son. He has held onto the original nine and continued to grow. Asked about the advantages of owning many locations over one, Palmisano smiled and joked about how life would be simpler with a single shop. But he then quickly noted the benefits of bulk buying and the increased revenue that comes with each new spot. Fast Tracks have stuck to the basics through the years, Palmisano said, but they take pride in doing the basics well. Those basics include the normal services associated with a quick lube – oil, headlights, wiper blades, air filters, flushes, transmissions, power steering and radiators. Palmisano is experimenting with full tire service – including replacements – at two locations. “I think we’re priced right, and we do the basics very well and fast. That’s what people want,” Palmisano said. An oil change and related services cost $39.99, and Fast Track’s goal is to finish the work in 10 minutes. Additional services add to the bill and push the time needed to 20 or 25 minutes. Most of the products are Mobil, but more are being added. Customer service at Fast Track includes an employee greeting every customer within 20 seconds of the person pulling onto the lot. “We’ve always done that,” Palmisano said. “It’s just to let you know that we know you here. That’s the key to it. It’s a nice touch.” Fast Track also vacuums the interior of every vehicle and washes the exterior windows. Palmisano is proud of the cleanliness of his stores and believes that a clean, well-maintained environment makes customers CONTINUED ON PAGE 28 ➤

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“ ”

I THINK WE HAVE SOME OF THE CLEANEST STORES OUT THERE. THEY ARE CLEAN AND WELL-ORGANIZED. I THINK THAT’S KEY. MIKE PA LMISA NO

AUTOMOTIVE OIL CHANGE ASSOCIATION

➤ CONTINUED FROM PAGE 26

comfortable and contributes to return business. He recently spent nearly a half million dollars putting on new roofs, painting interiors, adding new signs and redoing the floors of his lobbies. “I think we have some of the cleanest stores out there. They are clean and well-organized. I think that’s key,” he said. Another bonus for customers, he said, is that Fast Track’s computer software reports all oil changes and other maintenance to CARFAX, the web-based service that supplies vehicle history reports to individuals and businesses in the U.S. and Canada. “That’s good for resale and warranty purposes. It makes it easy to track mileage and services.” Fast Tracks have either two or three bays, mostly depending on lot size. Palmisano would prefer three to keep traffic moving, especially now that he’s doing emissions testing for the state of Wisconsin at all of his Milwaukee area locations. “Emission testing has been really big for us. We’ll have them wrapped around the building,” he said of customers waiting for the tests. An average test takes five minutes. If a problem is found, the customer has to take the vehicle elsewhere for repairs. The state prefers that to remove any incentive for a shop to fail a car, Palmisano said. More than half of Fast Track’s car count is for emission testing. The tests are free to customers with no appointment needed, and the state pays Fast Track for each vehicle tested. LUBE+ S P R I N G

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Palmisano calls his operation “lean and mean.” He has about 150 employees at his 26 shops. Each location has a manager and assistant manager, and he has two district managers to supervise his 12 Milwaukee area locations and another two to oversee the other shops. His corporate staff includes a human resources manager and a chief financial officer. Ed Witzlib, the CFO, said Palmisano has the right touch with his staff. “He has trust in his employees, and he lets the employees do their jobs,” Witzlib said. Like most quick lube owners, Palmisano has seen his car count drop from an average of 60 or more per shop in the early years to closer to 40 today. The average ticket, however, is considerably higher “because of all of the services we’re doing now that we weren’t doing back then.” Palmisano also takes pride in his business’s level of community service. Fast Track gives back in many ways, he noted, including donating to Hometown Heroes, sponsoring a kite festival twice a year, selling tickets for the Wisconsin State Fair and helping a radio station blood drive by giving gift certificates to donors. Fast Track relies on direct mail and reminder emails with coupons to generate business, but Palmisano mostly believes it comes down to good service and how people are treated. “I really believe that extra level of customer service makes a difference, and we work very hard at that,” he said. L+

I N S U R A NC E |

FROM THE LUBE+ EXPERTS

MAKE THE MOST OF YOUR INVESTMENT IN KEY EMPLOYEES BY JACK WEST FEDERATED INSURANCE

AUTOMOTIVE OIL CHANGE ASSOCIATION

Many quick lube owners train and mentor employees only to have them leave in two or three years. Have you experienced the loss of a promising employee? Then you know the costs related to turnover are high and getting higher as jobs become more specialized. You probably offer the usual employment benefits, perhaps even a retirement plan, but that may not be enough in today’s specialized world.

Jack West is a National Account Executive for Federated Insurance. Located in Owatonna, Minnesota, with representatives in 47 states, Federated is AOCA’s exclusively recommended insurance provider for association members. Federated provides customized coverages and proven risk management techniques to more than 3,000 quick lube and auto service centers nationwide. Jack can be reached by phone at 800-533-0472 or by email at jewest@fedins.com. For more information on Federated, visit its website at www.federatedinsurance.com.

Younger workers in particular don’t want to wait until retirement for a bonus. They often think in shorter terms. You may want to reward certain key employees and let them know how special they really are to your operation. So, ideally, you need a shorter-term benefit that can work well at retaining these key employees. Questions to ask yourself about your key employees:

• Who keeps the business running smoothly

when I am here? When I am not here? Do I want them to stay until their retirement? Or until my retirement?

• What is keeping them here? Job satisfaction? Financial security? A relationship with me or other employees? Will they stay because of their current benefits? If not, what will it take to keep them?

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• Is there a way, without raising their salaries now, to give them an incentive to stay?

• Can I offer an additional benefit to these

specific employees without offering it to all my employees?

The answer to the last two questions is “Yes!” An Employee Private Bonus Plan will give your best employees a reason to stay. It is a carefully thought-out promise to pay a selected key employee specified bonus amounts at specified times for continuing employment with you. A sample bonus schedule may include a $5,000 bonus after five years, $7,500 after 10 years, and $10,000 after 15 years. This bonus is tax deductible to the business. With this plan, key employees do not have to wait until retirement to see their reward. You can design the plan as you desire to get a maximum retention value. This type of agreement states that if your employee is not employed with you at the time of a scheduled bonus, no payment is made. This type of bonus plan is appreciated by all employees and is especially attractive to younger employees who are just starting their careers.

FROM THE LUBE+ EXPERTS

How do you get the money to pay bonuses? You finance bonuses with a universal life insurance contract.

• When using life insurance as a funding

vehicle, the business is the owner, payer and beneficiary of the policy.

• Cash values are owned and controlled by

the business, are shown as an asset on the books and generally grow tax deferred.

• Insurance premiums are not tax

deductible to the business; however, the bonus is tax deductible when paid to the employee, once the employee has fulfilled the required number of years.

• Using cash value life insurance

as a funding vehicle also provides Key Person coverage in the event of the employee’s death.

• The life insurance proceeds can be used

to hire and train a replacement, and to replenish lost profits during the transition period.

A common variation includes offering a percentage of the death benefit to the employee’s personal beneficiary through a written Endorsement Split-Dollar Agreement. This provides needed personal, tax-free death benefit coverage to your key employees for pennies on the dollar. For this tax-free death benefit, a small term insurance cost is reported on your employee’s W-2 each year.

I N S U R A NC E

You may invest countless hours and dollars training and mentoring young employees to help manage and operate your quick lube stores. Your talented employees will be more likely to stay if you challenge them with responsibility and offer opportunities that may not be available from competing employers. An Employee Private Bonus Plan may help you get the best return for your investment in their future. L+

You may want to reward certain key employees and let them know how special they really are to your operation. So, ideally, you need a shorter-term benefit that can work well at retaining these key employees.

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Call Today: 1-800-742-4511 or Email: info@pistn.com LUBE+ S P R I N G

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AN INDUSTRY EFFORT TO PROTECT CONSUMERS NEEDS YOUR HELP BY THE AOCA

AUTOMOTIVE OIL CHANGE ASSOCIATION

If a driver gets his or her oil changed at your shop, can the manufacturer of the vehicle automatically void the warranty? The answer is “no,” according to the MagnusonMoss Warranty Act. Still, manufacturers have been testing the boundaries of federal law for years.

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“They make people feel like if they don’t use their branded products and services, they’re going to blow their warranty. They do everything but say the exact phrase, ‘We will void your warranty if you don’t use our stuff,’” said Joanna Johnson, president and founder of Johnson Policy Associates, which advocates on behalf of the fast lube industry. In 2015, in response to AOCA’s petition, the Federal Trade Commission filed an administrative complaint against BMW for allegedly telling owners they were required to use MINI dealerships and parts. BMW settled with the FTC. “You can imagine what happens if you’re a fast lube operator. When an OEM or dealership is making customers think they have to use their services and products, you’re going to lose a lot of business,” Johnson said. In most cases, consumers aren’t aware of their rights. “People are bamboozled. They go to the dealership, which say if they’re using an aftermarket filter that they’ve blown the warranty,” Johnson said. “But under federal law, they’re required to prove that particular filter actually caused damage in that specific case.”

One of the best ways to help is by asking customers to take this warranty act survey at www.surveymonkey.com/r/MVL7B9H

➔

u u u u

“The only way for them to require a branded filter is to either give it away for free or get a waiver from FTC after proving the vehicle can function properly only with it and no other kind.” No auto manufacturers have received waivers from the FTC, Johnson added. How can you help?

You can also reach out to state legislators. Johnson has some advice on where to start: Find out who represents you. Search for your state representative online. The contact information for the representative’s office should be on the Legislature’s website with a zip code search option. Set a meeting. Call and ask to speak with the scheduler. Tell the scheduler who you are and that you want to meet. The purpose is to talk about legislation to educate consumers about their warranty rights. Be brief and to the point. Stick with the key messages you want to communicate. Remember to hand out your card. If you meet with a staffer, get the staffer’s card and ask if he or she is the best person to follow up with after the meeting. L+

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A & I Distributors 1-800-829-7977 Arizona Petroleum 1-800-580-5823 Christenson Oil Co 1-800-553-8739 Colorado Petroleum 1-800-5804080 Complete Lube Supply 1-800-461-0781 Crane’s Waste Oil 1-800-272-6330 Dennis K. Burke, Inc. 1-800-289-2875 Glockner Oil Co 1-800-289-2979

Grainger www.grainger.com Inland Wholesale 1-800-446-5263 International Filters 1-800-872-2333 John R Young Co 1-800-481-3889 Keller Heartt Oil 1-800-423-7513 Key Oil Co. 1-800-950-2645 Kwik Industries 1-800-442-5368 Lard Oil Co. 1-800-738-7738

FROM

Levin’s Auto Supply 1-800-655-7700 Mays-Shedd Sales 1-800-488-5823 McGlaughlin Oil Co. 1-800-839-6589 Oakland Lubrication 1-800-828-1675 Prime Lube 1-800-634-4615 Reisner Dist 1-800-293-2197 Rowleys Wholesale 1-800-769-5397 Sampson-Bladen Oil Co. 1-800-849-4177

RelaDyne

• Great Lakes 708-599-8700 • Gulf Coast East 800-256-2512 • Gulf Coast West 713-7477411 •Mid-South 318-368-3101 • Midwest 800-786-2803 • Oklahoma 800-256-5017

W W W. AOCA .ORG

Because consumers don’t know their rights, a group of industry stakeholders is pushing state legislatures to do something about it. “We’re asking state legislatures to require dealerships to disclose these warranty rights at the time of sale,” Johnson said. Connecticut has already passed model legislation on the issue. Massachusetts and Florida are among states where legislation is pending. Fast lube owners and staff can help drive momentum in their states by getting involved in the effort. One of the best ways to help is by asking customers to take this warranty act survey at www.surveymonkey.com/r/MVL7B9H

Cleaners / Degreasers Spill Kits Absorbents Parts Washers

Service Champ 1-800-221-0216 1-800-233-9041 Whitefield Oil Co. 1-888-394-3835

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Customer satisfaction comes in many forms, and any company that has made it a priority will stand out from others.

➤ CONTINUED FROM PAGE 22

Q. How can everyone in the workplace go the extra mile in providing great customer service? A. Work fervently to create a culture where the customer is treated like royalty. As a manager, you have to model this daily. Treat each complaint with importance. Model problem-solving in front of employees. Foster an environment that seeks ways to make customers feel special and that they are receiving a quality service. Quality of service and goods will bring customers back. The lack of quality creates hunger and a state of insatiability. The natural reaction to that is to look for things that fulfill the desire to absorb excellence.

Q. Have the methods for making customers happy changed with the advent of social media, faster access to technology, with more and more buyers becoming millennials, etc.? A. Oh yes! We all, not just millennials, are coming to the point where we expect hightech service. It’s a matter of convenience, and we want it. When we encounter stores and businesses that don’t offer it, our reaction is often, “Why not?” We look at them as being behind the times, and we feel like they’re not putting customers first. Don’t fear the technology side of things; instead, dread staying out of the mix. Q. How can we start to identify a customer’s unmet needs? A. You simply have to ask questions. Once customers believe you actually care, they will be happy to offer information. Create an ongoing atmosphere of searching for unmet wants. Teach your people to be sensitive to non-verbal clues that a client makes. One of the most often unmet needs is education. An educated customer will come in more often for the services you provide.

AUTOMOTIVE OIL CHANGE ASSOCIATION

Q. Do you think that the internal culture within a workplace is important as well?

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A. When employees are happy about their workplace, customers know it. The reverse is also true. Never overlook the great value of a harmonious workplace. I often travel around the globe to assist staffs that are experiencing relational problems. It takes a specific “peace-making” attitude to bring victory out of these circumstances. I have been blessed to have success in these ventures. Management must pay attention to set the tone for a pleasant workplace where people are happy to be there. This

means workers and customers must be valued, treated respectfully, included and enjoy good communication practices. If you say, “We treat our people well,” you should be prepared to explain what that looks like. Mere statements of practice aren’t enough. Q. How does optimal customer satisfaction differentiate a company from others? A. Right away, we recognize this business because it’s thriving. It’s not struggling to survive. You also know if you are this company because a good percentage of your business comes from referrals. I often overhear people telling acquaintances about “a great place.” They share the info as if they’ve discovered a gem. It makes them look good when their friends believe they know what they’re talking about. Optimal satisfaction is also evident when a company advertises wanted amenities such as free Wi-Fi, a kid-friendly area, free coffee or water, etc. Given a choice with the same price, I’m going to the store with the good amenities. They’ve made me feel welcome and wanted. Couple that with a well-groomed staff who treats customers with kindness, respect and understanding, and we’ve found a gem. Customer satisfaction comes in many forms, and any company that has made it a priority will stand out from others. Excellence is the biggest factor that will differentiate you from your competitors. The pendulum will start to swing back toward excellence. More mature groups long for it, and millennials will begin to look for it. Millennials say it’s a matter of principle. Having been inundated with a culture of mediocrity, they are beginning to rebel against it. Be ahead of that coming curve. Make your automotive store a consistent bastion of excellence in service and watch your profits steadily increase. L+

TOP-NOTCH EDUCATION AOCA provides best in class education to the fast lube industry. MANAGEMENT CERTIFICATION COURSE Effective management is crucial to your success, and AOCA offers the best management training in the fast-lube industry. Two days of extensive instruction will benefit new and experienced managers, as well as owners.

FALL COURSES: • September, Dallas, TX • October, Vancouver, ON, Canada Can’t make one of our scheduled courses? Contact us about a private management certification course.

Visit www.aoca.org for more information about AOCA education opportunities and sign up today.

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H U M A N R E S OU RC E S |

FROM THE LUBE+ EXPERTS

QUESTIONS NOT TO ASK DURING INTERVIEWS B Y C L A U D I A S T. J O H N

Questions NOT to ask:

AFFINITY HR GROUP

• How old are you or how much longer do you plan to work before you retire?

AUTOMOTIVE OIL CHANGE ASSOCIATION

Most oil change companies are aware that in the hiring process, it is illegal to discriminate against a candidate based on nationality, religion, age, marital or family status, gender, health and physical ability, military status and, in some locations, sexual identity and criminal background.

Claudia St. John is president of Affinity HR Group. Affinity HR Group is AOCA’s newly endorsed human resources partner and resource. To learn more about the services Affinity HR Group provides AOCA members, visit Affinity’s website at www. AffinityHRgroup.com/aoca or contact one of the company’s HR consultants at contact@ affinityHRgroup.com.

What they don’t realize is that many seemingly benign questions can lead a candidate (or court of law) to conclude that you are intentionally or unintentionally doing just that – discriminating against a protected class. So, if your questions or screening methods could be viewed as having an adverse impact on a protected class, you should avoid asking them. Following is a fairly comprehensive list of the types of questions you should NOT ask. You might want to print this out and review it just before you conduct your next interview.

• What is the date of your high school graduation?

• When or where were you, your parents, your spouse born?

• What is your original or maiden name? • How long have you lived at your current address?

• Questions about lineage, ancestry or national origin.

• What is your religion or what are your religious practices?

• Questions about race, complexion of skin or attitude about working with co-workers of different race.

Many seemingly benign questions can lead a candidate (or court of law) to conclude that you are intentionally or unintentionally discriminating against a protected class.

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FROM THE LUBE+ EXPERTS

• Citizenship (although you may ask if he

• Any medical information (general health,

• Questions about physical characteristics

• Do you smoke, drink, take drugs? • Dates of military service, type of

or she has the legal right to work in the United States). (i.e., weight, height, color of hair, etc.).

• What is your marital status? • Do you have or intend to have children? • What’s your gender or sexual identity? • How do you feel about managing a

discharge, or if receiving veteran disability pension.

• Listing of clubs, societies or lodges

where applicants have membership.

• Do you belong to a labor union? • Do you own a car/home?

Some of these questions may be surprising, such as the one referring to car ownership – particularly because the position is in the car-servicing industry. But remember, owning a car or a home is usually not relevant to employment. What’s relevant is access to a vehicle or other reliable form of transportation. While it is not acceptable to ask these questions during a job interview, there are related questions that are perfectly legal for you to ask. CONTINUED ON PAGE 38 ➤

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man/woman?

disabilities, past use of sick leave, use of workers compensation benefits).

| H U M A N R E S OU RC E S

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FROM THE LUBE+ EXPERTS

H U M A N R E S OU RC E S |

➤ CONTINUED FROM PAGE 37

AFFINITY Q&A Q: We have just instituted a no-smoking policy on our premises. However, our employees are now taking their breaks on the public sidewalk and smoking. Can we keep them from smoking on public property? A: Congratulations for making this change. It is beneficial to the health of all of your employees. That said, it’s often a challenge to manage these policies. What employees do off of your property is their own concern, provided they are not “on the job” at the time. But if they are at work as part of their work day, you can manage their behavior. Here’s how some have handled it: 1) State that the facility and surrounding company property are smoke-free (including in their cars in the

AUTOMOTIVE OIL CHANGE ASSOCIATION

company parking lot). 2) State that all

employees must remain on the property during breaks. 3) Should employees chose to leave the property during an approved extended break, such as for lunch, they may do so, but they must leave entirely. They may not trespass on neighboring property. Of course, this policy only works when managers manage it strictly and consistently. Unfortunately, smoking is a serious

Questions you MAY ask:

• What is your name? • What is your address? • Our hours of operation are (describe). Are there any factors, such as commute, access to

reliable transportation, personal commitment that would make it difficult or impossible for you to work our required schedule?

• What educational institutions did you graduate from and what degrees or certifications did you earn? (Do not ask dates of completion.)

• Are you legal to work in the United States? (Do not require documentation until post-hire.) • What languages are you fluent in for speaking/reading/writing? • What days are you available to work? • This position requires the following physical abilities: (describe.) Are you able to perform the duties of the position?

• Are you over 18 years of age? • Are you a military veteran? • What military skills and experience are you able to bring to this position? • This position requires a clean criminal background. Do you anticipate this being a problem for you? (If the position does not include a significant risk for theft, it’s best to ask questions about criminal background later in the employment process).

Beyond these tricky areas of inquiry, there are many creative, insightful questions you should consider during an interview. And, whenever possible, we encourage you to ask them in a “behavioral interview” format, which is simply posing the question in the following way: “Tell me about a time when (question).” This will reveal the most detail about the candidate’s experiences, which are always the best predictor for future behavior. Also, do not require unnecessary documentation, such as a birth certificate, naturalization or baptismal records or require a photograph during the interview process. All legal documentation should be obtained and processed after the employee has been offered the position.

products and incentives to help them kick

Finally, we all know that in this industry, hiring skilled, reliable labor can be a challenge, and some companies will be tempted to take anyone who comes in the door. But the more time and effort you put into establishing a solid hiring process and practice, the more likely you are to hire experienced talent with a solid work ethic.

their habit. Good luck!

Happy hiring! L+

addiction, and employees will look for ways to satisfy their need. Also consider offering smoking cessation programs,

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✔

QUICK LUBE OWNER SURVEY

AOCA SURVEY SAYS...

CUSTOMER SERVICE, MARKETING DRIVE MOST TRAFFIC AUTOMOTIVE OIL CHANGE ASSOCIATION

B Y S C O T T W. A N G U S

Customer service.

Sue Ackley co-owns two Oil Change Plus locations with her husband in Missouri.

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For different quick lube owners, it means different things. For most of them, however, it’s the biggest reason that customers keep coming through their doors. That’s what they said in a recent AOCA survey asking members to identify the single biggest thing they have done to increase car counts. “I have been a believer for all the 21 years we have been in business that GREAT customer service is the most important thing ever, and we bend over backward to achieve that,” said Sue Ackley, who owns Oil Change Plus stores in Florissant, Mo., and St. Peters, Mo., with her husband, Gene. Most of the responses in the informal survey focused exclusively on customer service, and many others included customer service as among key traffic drivers. Quick lube owners also mentioned marketing, coupons, a digital sign, advertising, auto repair, tire sales, improving the building’s appeal, loyalty programs and cross marketing with a car wash. Obviously, many of those are related, and nearly all come back to customer service to some degree. Ackley noted that Oil Change Plus’s customer service goes “all the way from our greeting of the customer, which is their first impression, to making sure we thank them for their business when they leave.”

“We still vacuum and wash windows inside and out, and if we are running behind, just letting them know. Or even if we are short-handed and seem slow, we tell them why,” Ackley said. “Keeping the customer informed is part of great customer service.” “I want to be the only place they think of going when their car needs anything,” she said. To that end, Oil Change Plus expanded the services it offers. “We started out doing the typical oil changes and preventive maintenance but realized that doesn’t pay the bills and we needed more,” Ackley said. Too often, customers were disappointed when the shop couldn’t fix something or address needs, she said, so Oil Change Plus got into light automotive repair, including tires, brakes, tie rods, ball joints, struts, shocks, tune-ups and more. Oil Change Plus also does emission and safety inspections required in Missouri. Ackley also has a children’s play table and chairs in her waiting room, along with books for kids. “Fifteen minutes is a long time for a child to sit still. If a child is content, then the

ULTIMATELY, IT COMES DOWN TO BEING HONEST AND TRUSTWORTHY AND HAVING INTEGRITY WHEN DEALING WITH CUSTOMERS.

parent feels comfortable taking time to do some of the preventive maintenance that their vehicle needs,” she said. Ultimately, it comes down to being honest and trustworthy and having integrity when dealing with customers. That’s really what customer service is all about, Ackley said. Doug Edgman owns Doug’s Pro Lube in Monett, Mo., with his wife, Ramona. He believes customer service is about selling customers only what they need and keeping them apprised of what they might need down the road. He has witnessed other, bigger shops selling customers “anything and everything” and sometimes falsely convincing them that not having expensive work done could be dangerous. Edgman teaches his employees to “come from the help side.” That involves checking vehicles thoroughly and working with customers to do

work immediately that must be done and that customers can afford and advising them of other maintenance or repair work that will be needed during future visits. “I have found over the years you can be a hero or a zero,” Edgman said. “People for the most part don’t have 200 to 300 extra dollars to spend, so we try to help fix or replace things by what they can afford today and plan the other things later. “It seems to work, and repeat business is great.” Doug’s Pro Lube has been in business almost 10 years, and he’s proud of the team approach that his shop takes to working with customers. “I guess the best advice is don’t make your customer into a dollar sign and you will have a great relationship with that customer,” Edgman said. J.P. Bennett, who has owned a single CONTINUED ON PAGE 42 ➤

W W W. AOCA .ORG

And there’s more. Much more.

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✔

QUICK LUBE OWNER SURVEY

➤ CONTINUED FROM PAGE 41

CONSISTENCY, CULTURE, EMAIL AND MORE Here are other responses to AOCA’s informal survey of members about the most important things operators have done to increase traffic count: ✔ We strive for consistency in our base principles. They include courtesy, integrity, perseverance, self-control and indomitable spirit. Do well everything we do and do it with humility. – MARK WELP, KWIK KAR SOUTHWEST ✔ Went to all of our neighboring businesses with coupons for all of their employees with a deeper discount than we offer in our direct mail pieces. – ANONYMOUS ✔ Looking at our organizational culture and really understanding the motivation of our employees and customers. From recognition, attainable goals, monthly contest, etc., these variables helped to build more loyal individuals within our company. We have also increased and revamped our marketing strategy. With increased company exposure, brand recognition and employee interpersonal citizenship behavior, Express Lube continues to reach for the stars. – ERIC A. GALINDO, HLS EXPRESS LUBE ✔ In house email program that allows us to contact customers within two days of their visit. We offer a discount on a future full service oil change to encourage an additional vehicle. If not, we encourage them to share the offer with anyone. We also send reminders of upcoming routine service, including oil changes and state inspections. Customers who have been delinquent are encouraged to return. For mechanical work, we notify customers of known services that are due (with quote or encouragement savings). On an annual basis, we are sending approximately 50,000 emails. – ANONYMOUS ✔ Treated all customers with “Raving Fan” customer service – as we have always done. Our loyal customers are driving more miles more quickly due to lower gas prices, resulting in the need for more oil changes. – CLYDE DAVIS, VIRGINIA LUBE CENTER ✔ Customer loyalty program. We use ISI Lubesoft management software and enacted a loyalty program where customers purchase five oil changes and the sixth is free. Immensely helped with retention. Once they came in twice or three times, they were definitely coming back for No. 4, No. 5 and to get that sixth one free. – ANONYMOUS

✔ Good customer service and cross-marketing to our car wash customers. – STEVE, FOOTHILL CAR WASH

✔ Hire marketing representative and use social media more extensively. – ANONYMOUS

✔ Made building more appealing and approachable, along with great customer service. – KODY DENNIS, QIK LUBE ✔ Became personal with customers. Greeting by name and recognition when possible. – ANONYMOUS ✔ Word of mouth; treat all customers respectably, and treat their vehicles as if they were our own. Good service means more service. – GEOFFREY LEAN, CASTROL PREMIUM LUBE EXPRESS

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Jiffy Lube franchise store in Edmonton, Alberta, Canada, for 11 years, also knows the importance of customer service, but he’s a big believer in direct marketing to get those customers in the door in the first place. Bennett has been using direct mail advertising on and off for the last few years, but he’s recently “stepped up my game.” He now delivers a new piece roughly every 45 days. “Direct marketing is by far the most expensive way to increase car count. I found it to be the best way,” he said. “I have found that direct mail beats any and all advertising I have done in the last 10 years.” That said, he has specific rules that help ensure that direct marketing works for him:

• Have a reason for the offer, such as a customer appreciation offer or an anniversary.

• Have a piece that sticks out. He uses a die-cut piece in the shape of a car.

• Repetition is key. Dropping an area one

time is not enough. You need at least two drops; three is better.

• The offer must be a motivator. In other

words, if you are going to do a discount, make it one that is hard to refuse.

“I am currently at $20 off a full-service oil change. My basic is $58.99, so I am effectively at $38.99, a very hot price point in my market.”

• Track your results. How many people

came in on the offer? What was the average ticket? Were they new or existing customers? What postal code or zip code did the offer originate from?

“There are many different metrics to track. To me, the metrics I follow most are dollars generated and new vs existing customer percentage.” Before starting a direct marketing campaign, however, be sure your team is ready, Bennett stressed. “There is no use paying for customers to come to your door if your crew isn’t ready to receive them,” he said. L+

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330 N. WABASH AVENUE, SUITE 2000 | CHICAGO, IL 60611 TOLL FREE: 800.230.0702 | TEL: 312.321.5132 | FAX: 312.673.6832 EMAIL: info@aoca.org | WEBSITE: www.aoca.org

AOCA BOARD OF DIRECTORS PRESIDENT

David Haney Oil & Lube Express dhaney3283@gmail.com TREASURER

Bob Falter Multi Mgmt Inc. dba Jiffy Lube multimgtrjf@aol.com SECRETARY

Dave Jensen Pennzoil 10 Minute Oil Change Centre Penn10w@rogers.com PAST PRESIDENT

AOCA STA FF CON TACTS MEMBERSHIP & OPERATIONS

EXHIBIT & SPONSORSHIP SALES

Bryan White

Robb Shrader

EXECUTIVE DIRECTOR

SALES COORDINATOR

312.673.4959 bwhite@aoca.org

312.673.5581 rshrader@aoca.org

Megan Schwartz

GOVERNMENT AFFAIRS POLICY ADVISOR

MEMBERSHIP COORDINATOR

Joanna L. Johnson, PRESIDENT

312.673.5979 mschwartz@aoca.org

JOHNSON POLICY ASSOCIATES, INC.

Gena Parsons MEMBERSHIP ASSOCIATE

312.673.5775 gparsons@aoca.org

P.O. Box 13302 Des Moines, IA 50310 515.277.4320 (OFFICE) 515.991.4971 (CELL) 515.277.4340 (FAX) jlj4policy@gmail.com

Jim Grant FastLube jsgrant@fstlube.com BOARD MEMBERS

Amber Kossak Solid Start kossak@solidstart.biz

Harold Smith Express Lube hsmith@expresslube.com

Adam Sturdivant Kent Lubrication Centers asturdivant@kentoil.com

Jeff Malicote Valvoline Express Care wjmalicote@windstream.net

Steve Barram

AUTOMOTIVE OIL CHANGE ASSOCIATION

Integrated Services, Inc. steve.barram@ints.com

OUR MISSION

AOCA is dedicated to providing its members with the business tools, resources and education to professionally and successfully deliver convenient automotive oil changes and other preventive maintenance services. HISTORY OF AOCA

The Automotive Oil Change Association (AOCA) is a non-profit trade organization representing the convenient automotive service industry. The association was founded in 1987 and is headquartered in Chicago, Illinois. AOCA is dedicated to enhancing the competency of fast lube owners, educating the public about the benefits of preventive automotive maintenance and maintaining a favorable business environment for the industry. AOCA members adhere to a Code of Ethics and a Standard of Service Excellence. Members provide “Professional Service at YOUR Convenience” to the motoring public, helping to extend the life and safety factors of their motor vehicles through quality maintenance. A C O M M I T M E N T T O E D U C AT I O N

Emphasizing education, the AOCA provides expert technical training for lube center employees. For business owners and managers, the organization provides programs to enhance management skills, automotive engineering and industry issues. The association also serves as a resource for consumers regarding the benefits of regular, preventive maintenance in protecting their automotive investment. As part of its commitment to education, AOCA has a scholarship program that provides tuition assistance to employees of member firms attending institutions of higher learning. AOCA: THE INDUSTRY LEADER

In addition, AOCA provides counsel on regulatory issues, represents the industry on Capitol Hill, and develops research data on the convenient auto service market. The association also makes available a wide variety of business products and services to help members improve business operations. AOCA accounts for over 3,500 auto maintenance centers throughout the United States, Mexico, Canada and many other countries around the world. What made AOCA the industry leader? The answer is simple. We give our members access to tools, training and information to help them serve their customers efficiently and effectively.

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In Tune and at your Service

✦ Know and understand the industry we serve. ✦ Know what our customers sell and how they bring their products to market. ✦ Know and understand the role of distribution. ✦ Know and understand the importance of educating everyone in the channel.

These are Bedford Falls Communications’ operating principles. We employ them in the development of each custom publication we produce on behalf of the clients we are privileged to serve. When we do our job properly, everyone is aligned to drive home the message you want delivered. Interested in a custom publication? Call us today. John Aufderhaar

Bedford Falls Communications produces high quality association, trade and custom publications for corporate clients. If you are interested in a custom publication, please call us today.

/ PRESIDENT

Bedford Falls Communications www.bedfordfallsmedia.com 920-206-1766

MESSAGE FROM THE EXECUTIVE DIRECTOR

AOCA EXPANDS OFFERINGS, BENEFITS TO HELP MEMBERS IMPROVE OPERATIONS “AOCA is a different organization than it was a year ago, and as I look ahead, I am confident we will continue to grow.”

For those of you reading this first issue of LUBE+ at iFLEX 2016, you are among the first to see AOCA’s vibrant new magazine designed for the convenient automotive service industry. If you’re reading this after iFLEX, let me provide some background information. AOCA’s goal is to develop relevant member offerings disseminated through a number of varied communication vehicles. LUBE+ is the newest example of a useful communication vehicle in which AOCA can share valuable information that helps members of the convenient automotive services industry operate more smoothly, efficiently and profitably. LUBE+ may be our latest offering, but it certainly isn’t the only AOCA benefit that has been delivered in the past few months.

AUTOMOTIVE OIL CHANGE ASSOCIATION

It seems like a long time since I assumed the role of AOCA executive director Aug. 1, 2015. In fact, it’s been only 10 months. I’m excited about the number of new AOCA offerings and benefits we’ve been able to deliver in less than a year:

• LUBE+ magazine, the official publication of the Automotive Oil Change Association

• Co-location of AOCA’s iFLEX convention and trade show with the International Carwash Association’s The Car Wash Show.

• Partnership with PISTN: Marketing

Accelerated, a one-stop agency working with oil change, auto repair and tire centers looking to upgrade their websites and online marketing.

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• Launch of the AOCA Savings4Members program, a collection of pre-negotiated vendor programs that save members thousands of dollars annually.

• Partnership with Affinity HR Group, giving

members access to unique programs tailored to assist with their challenging HR and management issues.

• Development of the AOCA Education

Supporter Program, which allows vendor members to support operators’ needs for additional training and resources while gaining valuable exposure for their companies.

• And of course, AOCA’s continued role as the

voice of the fast lube industry when regulation and/or legislation at the federal or state level is unreasonable and threatens to make doing business more difficult.

One upcoming AOCA benefit worth noting is the Management Certification Courses being held in the fall. As I write this column, dates and details are not final, but you should have received information by the time this issue of LUBE+ went to print. AOCA’s Management Certification Course is a two-day program that provides the knowledge and tools to help you and your managers develop skills in planning, organization, staffing, leading and controlling. And if you haven’t heard, we’ll be in Dallas and Vancouver this fall! CONTINUED ON PAGE 48 ➤

Meet the new boss.

Are you prepared if something were to happen to you? Is your successor? You deserve to transition your business to the next generation in the manner you deem best. A sound business succession plan can help protect your lifeâ&#x20AC;&#x2122;s work. Call your local marketing representative or visit federatedinsurance.com to learn more. Federated provides clients with access to services offered through wholly independent third parties. Neither Federated nor its employees provide legal advice.

16.18 Ed Date. 11/15 *Not licensed in the states of NH, NJ, and VT. ÂŠ 2016 Federated Insurance

Despite industry headwinds such as car counts/ extended intervals, OEM challenges, cost increases, regulatory issues and labor, I’m still very optimistic regarding our industry and the demand for services as we move through 2016. Factors such as a rising standard of living, improvement in road infrastructure, growing disposable income and ongoing development in urban and rural areas help drive market demand. Combine these with the ever-increasing complexity of vehicles, and I believe the outlook is positive.

➤ CONTINUED FROM PAGE 46

Of course, your company’s profitability will depend on its convenient location, good marketing and outstanding customer service. This is where AOCA is committed to helping members succeed. We can’t control the market as a whole, but we can provide our members the necessary tools, education and information to succeed in their markets.

➤ CONTINUED FROM PAGE 46

“We can’t control the market as a whole, but we can provide our members the necessary tools, education and information to succeed in their markets.”

Speaking of education, AOCA’s Online Technician Academy offers an easy and convenient way for operators to ensure their technicians are educated and certified with industry standards. This interactive program is presented in eight short segments. Topics include customer service, safety, products and services, and the roles and responsibilities of the hood technician, lube technician, the courtesy technician and the greeter/service writer.

AUTOMOTIVE OIL CHANGE ASSOCIATION

These are all in addition to AOCA’s existing member benefits, which include management and technical tools, technical support, marketing support, networking opportunities, education and various AOCA publications. And this is just the start. AOCA is a different organization than it was a year ago, and as I look ahead, I am confident we will continue to grow. The AOCA Board of Directors and I have great things planned; we are now merely scratching the surface.

Finally, I’d like to say “thank you” to all of the stakeholders that have made my transition as executive director seamless and those who have demonstrated their unwavering support of AOCA during the transition. In no particular order, thank you to the AOCA Board of Directors and committees; AOCA staff; Joanna Johnson, AOCA’s policy advisor; all of our association partners, including those listed above; National Oil & Lube News ; the International Carwash Association; and AOCA’s 2016 Education Supporters, including Federal-Mogul, Federated Insurance, Integrated Services Inc., MAHLE, True Brand and PureCars. Most important, I want to thank the AOCA membership. Many of you have reached out to provide feedback and important industry knowledge and have welcomed me to the AOCA family. Your support has been greatly appreciated! Please don’t hesitate to reach out to me, an AOCA Board member or AOCA staff with any questions you have regarding AOCA benefits or membership. We are here to assist in any way we can. Sincerely,

Bryan White

AOCA EXECUTIVE DIRECTOR

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BWHITE@AOCA .ORG

When It Came Time to Sell,

We Chose Valvoline “Oil Can Henry’s has been in my family since 1988. Over those 28 years, we’ve built a strong business with 89 company- and franchise-owned stores. We had lots of potential buyers knocking on our door, but when it came time to make the decision, we chose to sell to Valvoline. Valvoline offered a fair value for the business, managed every step of the transition and is committed to adding its expertise to our system. As the business moves to this next phase, the best part is that the store managers and franchisees are excited about the future because of the support that Valvoline will now provide with its larger platform.”

Chris Shepanek OCH International, Inc.

Time to Sell Your Quick Lube? Learn what Valvoline can offer you. Contact Gayle McMillin at (859) 357- 7303 or lgmcmillin@ashland.com, or visit www.ValvolineQuickLubes.com

SPRING 2016

THE MAGAZINE OF THE AUTOMOTIVE OIL CHANGE ASSOCIATION

PAGE

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AOCA 800.230.0702 www.aoca.org

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To advertise in future issues of LUBE+, please contact Ryan Wagner or Shana Ollarzabal at Bedford Falls Communications.

Auto Data 800.767.7580 www.autodatainc.com

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rwagner@bedfordfallsmedia.com 920.261.1945

Federal-Mogul 800.325.8886 www.fmgaragegurus.com

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Federated Insurance 507.455.5200 www.federatedinsurance.com

ISI 800.922.3099 www.ints.com

Mudlick Mail 888.200.6433 www.mudlickmail.com/CRM

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Oil Eater 847.763.0333 www.oileater.com

PISTN 800.742.4511 www.pistnmarketing.com

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Valvoline Products 800.832.6825 www.valvoline.com

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Valvoline Quick Lube Sales 859.357.7303 www.valvolinequicklubes.com

AUTOMOTIVE OIL CHANGE ASSOCIATION

shana@bedfordfallsmedia.com 920.261.1944

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