Last week I had the opportunity to attend the Automotive Industry Association's Industry Forum in Toronto. The venue was excellent. The agenda was excellent. The topics covered by the speakers were very pertinent.
Manufacturers were present. Warehouse Distributors were present. Jobbers were but a handful which lead to a weak turnout of Service Shop owners.
It is frustrating to watch AIA Canada make such a strong effort to bring the right information to the Aftermarket, yet they are not supported by the "division" that can truly carry the message and be the catalyst to make the change required in the Aftermarket industry.
Consider this: The Jobber can deliver the message of such an event to every shop they deal with and invite them to register and participate with them. It should be a mission to get as many of their customer base to participate in such an event because specific "education" is invaluable. Better yet, the Jobber could bring their top 10 shop clients to such an event as their guests. The opportunity to build relationships at such a function is so huge as you would have the opportunity to discuss each message delivered by the chosen speakers that the Jobber and shop owners attend together.
Why is this not happening? There are a few reasons and let me be perfectly clear, not all Jobbers fit this mold but unfortunately just too many do.
1). Lack of Respect for their customer base. Those Jobbers talk about their "Installers". Buy using that word alone proves these Jobbers don't even understand what their customer base does today. They talk down about their shop customers because they do not have solid business relationships in place that builds a "client" relationship. The Owner of the Jobber business does not even get out to meet and THANK his customers for their business. "That is the sales reps job". WOW.
It's time to challenge every Jobber to three questions: A) List 5 positive things as to why your Jobber business is great in these different economic times? and B) Do the top 10 shops in your market area make your business absolute first call? If not, WHY not? C) Do you know how to mathematically calculate the potential Aftermarket parts purchase volume from each shop you sell to and are you capturing 85% of that potential? If not, WHY not?
See if you can get a clear defined answer to those three questions. The answers will tell you a lot about the "person" in charge as you watch their eyes closely as they answer such provoking questions.
2). Lack of defined purpose for their Jobber business. Perhaps it IS time to get out of business as these Jobbers have no game plan (vision) to grow their business and offer real value to their shop clients. These Jobbers define value only through price. They are as bad as many of the shop owners they sell to...they just don't get it! ....and they complain about the shop owners. It's as simple as this...you market on price, you attract price focused people.....you market and educate on true value and you attract value focused people. Everyone is selling today to the exact people they went after. You win!!!, why are you complaining?
3) These Jobbers look at every dollar going out of the business as an expense. They themselves do not understand "Investment". The fact is there are expense dollars and investment dollars. Ask these Jobbers "How much do you "Invest" into your top 30% of your clientele each year and how do you measure the return? What realistic time frame do you expect to see a return? Most Jobbers with the wrong mindset want instant gratification (that magic silver bullet) rather than look at a 20% to 25% annual return as reasonable in these times.
Jobber must get involved because they can truly make a difference. Read the article about KC Automotive in Owen Sound (Jobber of the Year) in Jobber News. They "GET IT". There are more across Canada truly trying and investing to make a difference, but are pulled down by the many Jobbers who do not participate, complain, mess up the marketplace and think only of today.
The same thing is said from the best shop owners. The best shop owners will help any peer who wants to truly move forward and they will dedicate almost unlimited time to help that individual, but the bad shops just pull them down and give the public a poor industry image.
Isn't it amazing how the two divisions of the Aftermarket parallel each other?
Food for thought.
Wednesday, October 27, 2010
Tuesday, October 12, 2010
In Negative Times - Let's Make A Positive
Anyone that knows me understands I am direct and to the point person (sometimes I am often accused of being too black and white) because I believe deeply in any message I send out. I see and understand all my messages very clearly. All my messages, however, must be proven and stand the test of time.
This is a very personal message I am asking you to embrace. I have never done this before in an open forum such as the internet, but in this case it is worth every risk anyone could perceive.........this is important and very worth it. It is proven and stands the test of time.
The Aftermarket sector is one of the most genuine of the Automotive Industry. We work hard and we play hard. We have a high standard of morals wanting always to do the right thing for other people because we want to help. It is our character. We criticize many but are always prepared to compromise in order to move things forward. We demand a lot but we are prepared to give a lot. Of all the characteristics of the Aftermarket, nothing is stronger than to say "We truly are a people to people industry". We deal with people, we enjoy people, we support people, we must have people as a constant in our lives; we are the Aftermarket sector of the automotive industry.
For a number of years now, many of my students of my classes have heard me talk about "High Five for Kids". I want to talk about it again but now in the openness of the internet.
This particular charity is a unique stand alone Aftermarket initiative. High Five for Kids is a registered Foundation in Canada. Tax receipts are issued with all donations.
High Five for Kids is focused on "Kids"........only the Aftermarket could think of such a focus in such a unique way to provide happiness and environments that promote what the Aftermarket stands for......people loving and interacting respectfully with people to provide circumstances which allows people to enjoy the moment and create a positive atmosphere.
To date, through the High Five for Kids charity, monies have been raised and sent to under privileged Kids so they can access Day Camps; monies to rebuild playgrounds in small towns and villages; monies to assist in building recreational parks; and provided monies towards hospices that provide shelter and support to families that have been affected by Cancer of young children. All of these recipients (and many others) have been identified by AIA Canada Members Nationwide and H5's have become a support mechanism to those members requesting assistance to make a positive for the young ones in our world and their Families.
As a lifetime member of the Aftermarket industry (35 years) I am urging every shop owner and Jobber in Canada to commit 25 cents from every invoice/repair order they write each month to "High Five for Kids". Look we know business is tough but in tough times we, the Aftermarket, can still find the way to contribute and think of the kids. We as a sector are so drawn to them to ensure they enjoy themselves and are happy in a safe environment. Why? Because we personally can relate to every child experiencing tough times, unhappy times, unfortunate times. Many within the Aftermarket lived it and breathed it. We understand it. H5's accomplishes exactly what we have always wanted to see for Kids in our country who are in the circumstances many of us have experienced.
You can be assured that through AIA Canada 100% of your donation goes directly to this charity.........as it is a non profit Industry Association no money is drawn off the donations for administration and "other things" so many charities are known for. Everything about H5's is volunteered from members of the Aftermarket.
Please get behind this Charity and send in a monthly cheque based on 25 cents per invoice/repair order you wrote the month before payable to "High Five for Kids" c/o AIA Canada 1272 Wellington Street West, Ottawa, Canada K1Y 3A7......
I know we can always make an excuse as to "why I can't do this" but I believe there is more doers of positive things out there in the Aftermarket over the naysayers of criticism and inaction. If you ever would like to ask me any question on this charity, please call my toll free number 1-800-267-5497. If I can not answer your question, I know where to get the answer and I will get back to you. Remember, we are in the people business.
25 cents from every invoice/repair order to High Five for Kids.......a very worthy cause with very little sacrifice.......working together, the Aftermarket is an incredible sector of the Automotive industry because we do make a difference in peoples lives.
This is a very personal message I am asking you to embrace. I have never done this before in an open forum such as the internet, but in this case it is worth every risk anyone could perceive.........this is important and very worth it. It is proven and stands the test of time.
The Aftermarket sector is one of the most genuine of the Automotive Industry. We work hard and we play hard. We have a high standard of morals wanting always to do the right thing for other people because we want to help. It is our character. We criticize many but are always prepared to compromise in order to move things forward. We demand a lot but we are prepared to give a lot. Of all the characteristics of the Aftermarket, nothing is stronger than to say "We truly are a people to people industry". We deal with people, we enjoy people, we support people, we must have people as a constant in our lives; we are the Aftermarket sector of the automotive industry.
For a number of years now, many of my students of my classes have heard me talk about "High Five for Kids". I want to talk about it again but now in the openness of the internet.
This particular charity is a unique stand alone Aftermarket initiative. High Five for Kids is a registered Foundation in Canada. Tax receipts are issued with all donations.
High Five for Kids is focused on "Kids"........only the Aftermarket could think of such a focus in such a unique way to provide happiness and environments that promote what the Aftermarket stands for......people loving and interacting respectfully with people to provide circumstances which allows people to enjoy the moment and create a positive atmosphere.
To date, through the High Five for Kids charity, monies have been raised and sent to under privileged Kids so they can access Day Camps; monies to rebuild playgrounds in small towns and villages; monies to assist in building recreational parks; and provided monies towards hospices that provide shelter and support to families that have been affected by Cancer of young children. All of these recipients (and many others) have been identified by AIA Canada Members Nationwide and H5's have become a support mechanism to those members requesting assistance to make a positive for the young ones in our world and their Families.
As a lifetime member of the Aftermarket industry (35 years) I am urging every shop owner and Jobber in Canada to commit 25 cents from every invoice/repair order they write each month to "High Five for Kids". Look we know business is tough but in tough times we, the Aftermarket, can still find the way to contribute and think of the kids. We as a sector are so drawn to them to ensure they enjoy themselves and are happy in a safe environment. Why? Because we personally can relate to every child experiencing tough times, unhappy times, unfortunate times. Many within the Aftermarket lived it and breathed it. We understand it. H5's accomplishes exactly what we have always wanted to see for Kids in our country who are in the circumstances many of us have experienced.
You can be assured that through AIA Canada 100% of your donation goes directly to this charity.........as it is a non profit Industry Association no money is drawn off the donations for administration and "other things" so many charities are known for. Everything about H5's is volunteered from members of the Aftermarket.
Please get behind this Charity and send in a monthly cheque based on 25 cents per invoice/repair order you wrote the month before payable to "High Five for Kids" c/o AIA Canada 1272 Wellington Street West, Ottawa, Canada K1Y 3A7......
I know we can always make an excuse as to "why I can't do this" but I believe there is more doers of positive things out there in the Aftermarket over the naysayers of criticism and inaction. If you ever would like to ask me any question on this charity, please call my toll free number 1-800-267-5497. If I can not answer your question, I know where to get the answer and I will get back to you. Remember, we are in the people business.
25 cents from every invoice/repair order to High Five for Kids.......a very worthy cause with very little sacrifice.......working together, the Aftermarket is an incredible sector of the Automotive industry because we do make a difference in peoples lives.
Friday, October 8, 2010
Dealing with FEAR in Moving Your Business Forward
Shop owners from Coast to Coast are falling into a rut that produces an immense amount of internal fear. They have not taken the steps required to transition their business from the break down and repair model to the preventative maintenance model of doing business. Instead they hold on to the routines that seem to be familiar to them. Unfortunately those routines from the old business model do not work any more when it comes to growing the shops net income required to move their business forward.
Consider that in a previous BLOG I pointed out that many shop owners look at the better shops and to them, those better shops appear to be lucky. The definition of LUCK is "Laboring Under Correct Knowledge". These progressive shops sought out the knowledge and made the transition into the new world of automotive maintenance.
Well now it is time for shop owners to understand the term FEAR. The definition in business for this word translates into "False Evidence Appearing Real".
Too many shop owners seemingly don't believe the preventative maintenance model is the way to go, therefore they hold on to the old methods of doing business. They believe any change over to the preventative maintenance model could destroy their current customer base in terms of the work the shop does for them and of course they don't want to give those customers and that type of work up. This is not the case what so ever when the business transitions to the new model format.
The math does not lie. Consider that the vehicle technology that has been developed tells us the breakdown and repair model is now out of date. Instead of seeing customers 3 or 4 times a year, the shop will only see them once maybe twice a year on average. This will change shop profitability opportunities dramatically if not properly addressed. The vehicles are built so much better but they must be maintained. Complete vehicle maintenance is very critical today. When the newer vehicles do break down however, the client is extremely inconvenienced. We as an industry can ensure the client does not experience this inconvenience when we "Manage" their vehicle professionally with a preventative maintenance system in place within the shop. It is our professional responsibility to ensure the customer/clients vehicle is safe and reliable. Safe and Reliability management of vehicles produces substantial net income opportunities.
False Evidence (Mis-information not understanding) is misleading these shop owners and it is destroying their current business not to mention the owners self confidence.
Everyone must examine their "Fears" very carefully and understand exactly what is required to move their business forward. It really is not as scary as many people perceive. In fact it is very refreshing to have a new procedure and understanding that reduces stress, brings the shop employees together and grows the business net income.
Consider that in a previous BLOG I pointed out that many shop owners look at the better shops and to them, those better shops appear to be lucky. The definition of LUCK is "Laboring Under Correct Knowledge". These progressive shops sought out the knowledge and made the transition into the new world of automotive maintenance.
Well now it is time for shop owners to understand the term FEAR. The definition in business for this word translates into "False Evidence Appearing Real".
Too many shop owners seemingly don't believe the preventative maintenance model is the way to go, therefore they hold on to the old methods of doing business. They believe any change over to the preventative maintenance model could destroy their current customer base in terms of the work the shop does for them and of course they don't want to give those customers and that type of work up. This is not the case what so ever when the business transitions to the new model format.
The math does not lie. Consider that the vehicle technology that has been developed tells us the breakdown and repair model is now out of date. Instead of seeing customers 3 or 4 times a year, the shop will only see them once maybe twice a year on average. This will change shop profitability opportunities dramatically if not properly addressed. The vehicles are built so much better but they must be maintained. Complete vehicle maintenance is very critical today. When the newer vehicles do break down however, the client is extremely inconvenienced. We as an industry can ensure the client does not experience this inconvenience when we "Manage" their vehicle professionally with a preventative maintenance system in place within the shop. It is our professional responsibility to ensure the customer/clients vehicle is safe and reliable. Safe and Reliability management of vehicles produces substantial net income opportunities.
False Evidence (Mis-information not understanding) is misleading these shop owners and it is destroying their current business not to mention the owners self confidence.
Everyone must examine their "Fears" very carefully and understand exactly what is required to move their business forward. It really is not as scary as many people perceive. In fact it is very refreshing to have a new procedure and understanding that reduces stress, brings the shop employees together and grows the business net income.
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