When you're drowning, you don't say "I would be pleased if someone would have the foresight to notice me drowning and come and help me", you scream!

A quote from the late John Lennon actually nailed the Aftermarket.

Why is our independent shop sector of the Aftermarket not willing to reach out and ask for help? Why is our sector not willing to accept the hard message advice required, understand it and embrace it to really fix the problem? Why is our sector always looking for the quick fix and instant gratification? Why does our sector not understand business "investment" and the "time" factor to realize a proper return?

The independent sector of the Automotive Aftermarket must embrace reality and embrace it quickly, however, reality can leave a lot to the imagination.

We are drowning in our own lack of business literacy and savvy. Now before you scream back at me as being uncaring, insensitive, arrogant, or not having a clue what I am talking about, I submit to you, and answer this in total honesty, "Does the Independent sector of the Aftermarket industry have a culture of many inferiority complexes rolled into one?"

Consider that most shop owners have worked hard to strive to be a great technician. They have paid the total price to be on top of their profession but they did so without achieving a business education. They then have the opportunity to own their own business but they are embarrassed that they don't even understand the difference between mark-up and gross profit; shop potential means nothing to them and effective door rate is a foreign terminology. They think a Balance Sheet is for bankers and accountants. They think all the real answers lie only in their bank account balance.

The question is who did they turn to for the answers on how the business should be operated to create not only a professional personal income but a good net income to the business so it could grow and prosper? The local Jobber they got to know? The WD and their seasonal "programs"? A Manufacturing Rep?

Sorry, but they were not in the position to provide them with the right guidance or solutions they were seeking. They knew nothing about the intricate workings of a shop business.

This is not meant to be a commodity bash, it is a blunt reality check. It is not meant to insult any level, it is intended to bring abrupt awareness to our Aftermarket issues.

Consider that the Aftermarket sector is made up of 4 divisions namely a Manufacturer, a Warehouse Distributor, A Jobber and then the Service Shop level. 3/4 of the sector is in the commodity business. They make and sell parts. They need volume and a lot of cash to make their business work. They must be "busy" to make their business succeed. We need more sales, more volume, is their constant rant.

So what question do they ask when they enter your shop? Listen carefully, do your hear...."Are you busy?". WOW totally out of touch. You don't want to be busy as a shop owner, you want to be steady. They are in the commodity business BUT as a shop owner, you are in the knowledge business. You have to diagnose the vehicle problem thoroughly, explain it fully to an uninformed consumer and do that in a way to establish trust. The objective is to build a long-term relationship with the chosen clientele you want to do business with. If you are too busy you don't have the time do that.

You have to slow down and concentrate on billed hours per invoice and total shop efficiency which actually measures the effectiveness of your shop "team" working together. The solutions the industry have given to you are not focused on creating net income, they are focused on creating more activity which could be perceived as self serving. They talk to shop owners about getting more car count through the door, average sales per invoice and to be price competitive in order to keep busy. Ever noticed that you can actually sell a lot more year over year because you are busy but you are still broke! What is wrong with that equation? Patronization from the industry of how important you are as a client because of your great parts purchase volume does not pay the bills but it does feed an ego.

The vast majority of shop owners in North America need help. It is long past due that every level of the Aftermarket must learn how a service shop is to work to create net income. This would allow for the growth and tremendous opportunities ahead for the Aftermarket. The service shops are the front line troops of our industry not the bottom of the sector. We have to take the industry standard triangle and reverse it.

Think about this fact; in my 35 year career, I know of only 2 top level commodity Executives (we are talking about one who was in charge of North America for his commodity company and another one who owns a Western Canadian parts distribution business that serves three Western Canadian Provinces) that have actually sat through a complete shop business management class themselves for 3 days. Most company Executives send their staff. These Execs. did the math with the other shop owners that were attending with them. They discussed, they challenged and they interacted. They learned how a shop is measured and what needs to be done to ensure the proper NET income and return on investment is realized and how it is obtained. Their eyes were opened. They were stunned. They now saw opportunity for their own companies and its clientele. These Executives got it.

Unfortunately, one was shipped off overseas when he wanted to make "waves" (big changes) after attending this class for the company he was overseeing. His boss (or Board) did not understand. These 2 top Executives got it.......the others in our industry just don't understand or do not have the desire to understand. They are too busy. They are too close to retirement. Unfortunately it is becoming that black and white now.

So now EVERYONE at every level of the Aftermarket sector is under net income siege. I wonder why?

This is not a commodity bash article. It is a reality check that we have to learn and understand each level and what it takes to work together to ensure the Aftermarket grows and succeeds.

So for the vast majority of shop owners, it is the time to make life changing decisions. Are you going to seek out the right Business Management course that will address your specific questions? Insist on a money back guarantee so you know you are not wasting your money. Would you ask your Jobber Owner to go with you if he/she has never attended before so the two of you can learn how to work better together? Would he or she attend with you? If so, congratulations you have a winner. If not, listen carefully to their excuse. I think you will see what I am talking about.

As a modern shop owner, are you ready to accept full discussion on all business issues, listen to advice and guidance? Are you prepared for the CHANGE that we talk about but admitting it has not being embraced? Will you finally believe in yourself enough to invest in yourself and your business and stop thinking that everything is a cost to you?

"Life is what happens while you are busy making other plans."

I think it is time to make other plans so our sector can really move forward and enjoy a life instead of being strapped day in and day out to the business. No one wants to buy themselves a job.

If not, what is your solution? And oh........in your solution, prove the math with your plan to ensure NET income is created after a professional income is paid to you and you are not just creating activity to keep "busy".

Perhaps It Is Time To Step Back And Take A Deep Breath

Let's face it, there has been a lot of stress this year so far, but, let's think this through. Are you caught up in your business as like the "Y" generation and expect instant gratification or do you truly realize the realistic time frame to get things done. This is not a cop out. The fact is staff must come "up to grade" faster than ever before, that is the "Professionalism" of our sector, but that relates to effective training on a given topic. What I am referring to is, does Management truly understand "Investment" into the business. The fact is every shop owner and every Jobber has been "taught by the industry" to think that a dollar spent is an "expense" and watch your "expenses" every day. This creates a powerful but potentially negative mind-set. No one throughout the industry has the image or reputation to be known for discussing "Investment" into the business and how it works and how do you measure it. Now think about this, it creates a huge dilemma. If a dollar spent is an expense, how do you see any dollar spent as an investment?

Instant gratification is not realistic, however the internet has taught the current generation to expect it. You see it in every child today that is under 20 years old. Has that mentality affected how you think about your business? If it has you could be heading for serious trouble.

The facts are these: To change a business culture and invoke the right processes and disciplines with this fast pace and intricacy connected and technological world will take you 2 to 3 years to fix or implement!! I'm sorry this is the reality check you need to hear. I did not say you would like a warm fuzzy message. In the Aftermarket we must "LEARN" to deal with reality and the longer you have been in this business, the harder it is, and on the other hand the shorter time you have been exposed to the full industry the more frustrated you are feeling about how things evolve.

Let's all take a deep breath and refocus. For the "older crowd" in the Wholesale side of the industry, it is time to understand "investment". We must make a large amount of investment dollars because consider how rapidly the Aftermarket sector has "evolved" in the past 5 years compared to the last 20 that you have been involved with. Make the investment and it will serve you well IF your plan is focused on the future success of your clientele.

To the retail side, it is time to catch up to the modern world BUT you must have a comprehensive plan to do so. That been said I am confident in saying 80% of the Aftermarket shops do not have a plan. This puts the Aftermarket sector in a very vulnerable position. Now what?

Shop owners MUST start thinking about the next 3 to 7 years. It is irrelevant how tight your Cash flow is today. That will be sorted out in "time" if you have a plan AND the resources focused on making it happen. Anything else or other "quick Fix" is a pipe dream. Time for a reality check. If you are not prepared to make the required investment to deal with and understand today's realities, then perhaps it truly is time for you to get out of business. This sector of the automotive industry is the most exciting but most challenging to be embraced. If you are not up for it, them may I facetiously say maybe it's time you go into the funeral home business.