Wednesday, November 30, 2011

Being a Leader is Not About Ability; It's About Responsibility!

If you are a CEO, President, Vice-President, Manager or Director of any organisation within the Aftermarket, please consider these words to be accountable to the Title that you hold.

Owning/Managing a company or heading an organization does not automatically confer the title of "Leader" upon a person. Leadership today is not just about the "Ability" of an individual, as many people in key roles have great Abilities, but it is how they exercise their Responsibilities. In the end, their lack of understanding their Responsibilities, which is demonstrated through their actions, dramatically hurts the companies profitability and can be the demise of an organization.

Leadership is not about personal ego being messaged day in and day out but instead taking charge of their Responsibilities in that role.

Responsibilities include standing up and showing their passion for their company or organization by addressing anyone who challenges the "concept" of what the company or organization stands for because they actually believe in what the company or organisation is and what it represents.

Responsibility is ensuring that the company or organization performs at a level of excellence, on a timely basis, ensuring the image is accountable not only to their clients/members but also the general public.

Responsibilities include creating the environment and culture where all staff members enjoy a rewarding career through their desire to execute their role with excellence, efficiency and pride.

Responsibility means going the extra mile to secure the company or organisation's future by executing with absolute intensity. A "get it done now" attitude is demonstrated through the actions of the Leader because the Leader truly understands the importance of their role and their Responsibility to get results.

Examine closely the Leadership of successful companies and organizations and I'm confident you will clearly see a strong Responsible approach at the top position. It has nothing to do with luck but everything to do with understanding their complete Responsibilities in their role; after all that is why they hold that position.............that is...the select few Leaders that get it.

Friday, November 25, 2011

Never Support the Status Quo If It Is not Working

Everyone knows the definition of "Insanity"...doing the same thing over but expecting different results.

Are you prepared to go to the wall for "Change"?

Will you stand up, be vocal and ensure you are not guilty that you are still embracing the old ways instead of embracing the change that our industry must address?

Examples include:

- Good bye to Flat Rate pay for technicians and say Hello to hourly pay based on "Competency" of the technician? Flat rate for Diagnostic time is totally NOT realistic and the shop must come up to reality in its thinking, understanding of the new world and understand the new reality of what truly is our business on behalf of a client?

- Good bye to old bonus structures and say hello to a full Company Profit Sharing Plan with everyone involved from the bookkeeper to the front counter to the technicians?

- Good bye to night training for technical staff and say Hello to fully paid day training courses like every other PROFESSION out there?

- Pre-plan 2012 training (Technical & Business Management) courses now? Where and when in "North America" are they being held and get your company enrolled now?

- Work diligently to bring together a TEAM compared to individualistic objectives that in reality only serve the financial interests of the owner first .....compared to PROFESSIONS that focus on the CLIENT and build a reputation for excellence and uniqueness....... which leads to higher profitability for ALL that are involved?

Simple examples of status Quo and old thinking in our industry.

Are you ready for a defined change that takes our industry to a higher level of thinking, performance and measurement or are you one who insists that the old philosophy and measurement is the only thing we can survive on? Good point you made....as you talk about and say "survival"....instead of moving forward in a positive manner and encourage everyone at every level of our industry to embrace "a life" .......... a direction which this industry so desperately needs.

Thursday, October 27, 2011

The Greatest Battle You Will Fight Is The One Between Your Desire To Improve And Your Fear Of Improvement

A very good friend and confident challenged me with this thought and I could not help but to think how many people, companies and associations it applies to within the Aftermarket Industry. Why are we so afraid of DRAMATIC change when in reality we are so far behind the world in our structures, processes and attitudes.

Our sector of the automotive industry has so many incredible opportunities coming in front of it due to vehicle technology development and weak consumer confidence. Yet I watch and listen to people and companies looking at EVERYTHING they do as a "COST" with every dollar leaving their door. Where is the "INVESTMENT" attitude? Where are the people and companies who clearly see what is in front of us for at least the next 7 years and say "Let's go get it, what development do we have to invest in today to secure our major portion of it as we move forward?"

The Aftermarket has traditionally been made up of "trade" type people.......that's how we see ourselves as a sector of the automotive industry. You know, high school grads,even high school drop outs, no real higher academic education, work hard, play hard...life of hard knocks and real life situations has been the major player in the industries evolution/education....we like to see and touch what we do rather than THINK it out or create a VISION as to where we want to/can go; we simply have a show me and then do it for me mentality.

We have lost any will to be progressive because seemingly we totally fear what it may do to us. This is a battle every individual within the Aftermarket is truly struggling with.

We need vocal leadership within our sector of the industry. A person or people within a company or industry organization who gets it and is prepared to STAND UP.....and EXPLAIN ...WHERE and HOW their company or organization is going to contribute to this modern day Profession. They must be ready to take ridicule from people who can't see it, criticism from closed minded has beans,willing to cross the line, if you will, against all commentary because they see and understand the opportunity. They know the change is the right thing to do. They will want to bring their peers on board to embrace the NEW thinking, the new outlook, the new opportunities, the new reality to better our lives and NOT FEEL GUILTY ABOUT DOING SO.

We are in a battle to progress the Aftermarket for the next generation so they can embrace and enjoy a career which will provide everyone with a quality of life never seen before. Is that a wrong thing to do? I don't think so. I'm willing to take the criticism and ridicule but I will also simply look those people in the eye and ask "what are they doing to make things better?"................or is it simply a reality statement that comes out stating "It's all about them today, get over it!".

Friday, October 14, 2011

Is Our Sector of the Industry In Denial??

Watching, listening and examining how our sector is moving forward, one has to ask if we are truly in denial?

It appears at times that all levels of the Aftermarket are like deer staring into the headlights and commenting "What's that"? Nothing is changing at the grass roots level of the Service Provider shop or for that matter at the Jobber and Warehouse level as everyone is doing the same old thing and expecting different results. As you may be aware...That is the definition of insanity!

Lets wake up!!

We totally need to address reality which means openly addressing "change" which must include a total review of "How" we do things to ultimately service the consumer at a high quality level that is required to capture their business and trust. Yes it can be painful. Suck it up!! This is our livelihood. True positive change is painful but has so many rewards in the end.

Consider the following facts:

- shop management and their staff must learn a new paradigm in "how" to measure and execute internal processes within their business clearly and as professionals, which in turn leads to understanding their responsibilities. They must conduct their day to day affairs as a complete TEAM. How do they now conduct their day to day business to build trust with their clients, their customers?

- parts suppliers must understand...its just not about selling parts 100% of their time, but it truly is about survival and growth of their customer/client base so they have someone to sell parts to in their future - They should honestly ask themselves.. "How can we help to secure our future...what processes do we have to now learn to engage today to secure our prosperity for tomorrow? What do we have to do and what do we invest in to make this work? Do 100% of our staff understand what we should be doing each day to secure our future?"

- is every level of the Aftermarket prepared to commit and invest into our future or are we living for this day, this month, this quarter and consider every dollar leaving the company as an expense? It is imperative that everyone re-adjust our thinking to the reality of our regional, national and global economics we are confronted with today. We must ask and examine "Based on our actions today and our current philosophy, what will our business/our industry look like 7 years from now?.......which is really "our" tomorrow?"

I submit to everyone that we have reached the crossroads of moving from a "Trade" to a true "Profession" at ALL levels......now perhaps the aging/old people in the sector can't grasp that and will grumpily rebut this statement, however, the next generation of the aftermarket clearly now see the difference. Thank you vehicle technology. Thank you challenging economy. Our opportunity to make this transition over the next 3 years is here and every level must buy into the opportunity if the Aftermarket wants to be a dominant player in the National economy.

This is no time to doze off or fall asleep. Opportunity is pounding at the door..are you ignoring it or too old to hear it?

Are you up to it? If you don't understand it, then I recommend entering the necessary Business courses available so you can learn about it, understand it and "get it".

If you don't believe this, then respond to this BLOG and let me know how you see the future unfolding ..........but I must warn you of one thing that all of us fail to mention in ANY presentation made within the Industry............Remember, ultimately "Its all about the client/consumer EXPERIENCE". Are we providing that for such a grudge purchase?

So make a defined list as to "HOW" you are addressing this issue to ensure you are perceived as being "UNIQUE".

Don't talk to me about "Added Value" any more...that is just another form of discounting...in essence providing more for the same price.....time to truly get past this...and address the real question which is "What makes us Unique"?

The opportunity for the Aftermarket is huge...it is so positive......but I submit it will take vision, dedication, investment, and an unheard of amount of self-discipline to realize the incredible financial opportunity in front of all of us.........If you don't see this, then either get up to date with your education, or.......hey someone has to say it.........please leave the industry as YOU are part of the problem.

Saturday, September 24, 2011

The Aftermarket Needs to Implement Training Bonds

The Aftermarket, at all levels, must seriously look at how it handles on-going training and education of their staff.

We now require an incredible amount of time and serious investment to ensure personal development of each and every staff member is brought to the right level of education, understanding and skill to ensure they can execute their function professionally,in a productive and efficient way within the business. Whether it be technical - minimum of 100 hours per year of training per technician to stay on top of technology, business management - 6 to 8 days per year of ongoing upgrading to stay on top of business issues and to learn proven solutions, product knowledge or soft skill training, the investment by business in education is forever increasing in today's professional aftermarket. The problem in many cases is that management can see the need for training and educational development but is reluctant to spend the necessary money for fear the employee may leave the company soon after the training has taken place.

The old question is...What if I train them and they leave? The old answer is....What if you don't train them and they stay?

The solution? Implement a Training Bond.

A Training Bond is a legal agreement signed by the employee and the company at the time the employee is hired outlining the training and educational courses the company is going to provide to the employee. It is an understanding by the trainee that he or she will take the training outlined in the Bond agreement, fully participate and do their best to learn and understand the courses attended and at the same time acknowledge the investment the company is making into the employee. If the employee leaves the company within a certain period of time, then, based on the time frame, the employee will, on a pro-rate basis, pay the company back for the training. For example, if the training investment into the employee by the company over a series of courses is going to be $10,000, then the training bond may state that if the employee quits within two years from the start date of employment, the employee owes the company $10,000. If the employee quits in the 3rd year, the employee owes the company $6,000, the 4th year - $3,000 and the training debt is forgiven in full at the beginning of the fifth year. This is an example only, however, it clearly recognizes in writing the investment being made by the company and the accountability by the employee to treat the investment seriously.

If the employee is fired for cause, the company forgives the Bond, however the employee now has a permanent mark on their record of employment.

The level of maturity within the business is raised.

This will be the new aftermarket. It is evolving into a full profession as education and knowledge is the key to company profitability and employee prosperity. On-going investments must be made and acknowledgement and accountability of the investments must be put into place. That's what Professionals do.

Thursday, July 14, 2011

Do Tax Cuts Give The Rich a Free Ride in Canada?

Nothing could be further from the truth as shown in this story I found.

Let's put tax cuts in terms everyone can understand.

Suppose that everyday 10 men go to their favorite diner for dinner, The bill for all ten comes to $100. If it was paid the way we pay our taxes, the first four men would pay nothing; the fifth would pay $1; the sixth would pay $3; the seventh $7; the eighth $12; the ninth $18. The tenth man (the richest) would pay $59.

The 10 men ate dinner in the restaurant every day and seemed quite happy with the arrangement until the owner threw them a curve. Since you are all such good customers, he said, I'm going to reduce the cost of your daily meal by $20. Now dinner for the 10 only costs $80.

The first four are unaffected. They still eat for free. Can you figure out how to divvy up the $20 savings among the remaining six so that everyone gets his fair share? The men realize that $20 divided by 6 is $3.33, but if they subtract that from everybody's share, then the fifth man and the sixth man would end up being paid to eat their meal. The restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount and he proceeded to work out the amounts each should pay. And so the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of $59.

Outside the restaurant, the men began to compare their savings. "I only got a dollar out the $20," declared the sixth man pointing to the tenth, "and he got $7!" "Yeah, that's right," exclaimed the fifth man. I only saved a dollar, too. It's unfair that he got seven times more than me! "That's true," shouted the seventh man. "Why should he get $7 back when I got only $2? The wealthy get all the breaks." "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor."

The nine man surrounded the tenth and beat him up. The next night he didn't show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important. They were $52 short! And that, boys and girls and college instructors, is how Canada's tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. There are lots of good restaurants in Switzerland and the Caribbean.

Monday, July 4, 2011

Where Is The Urgency In The Aftermarket?

Ever noticed how things are changing so fast within the Aftermarket, especially with vehicle technology, shop internal technology systems and the OEM Dealer aggressiveness to take on the Aftermarket?

I have and I'm trying to figure out why no one seems to want to address these issues with any true sense of urgency?

Let me give you a simple example. Technical and Business training are an urgent matter right now in how the Aftermarket has to address the above mentioned issues yet I find every Aftermarket executive and most shop owners looking at "maybe the Fall we will look into that." What the heck..."maybe the Fall"??? Why not step out of the box and tell the industry two or three days during the summer is a definite now...plan it...as this is urgent.....with a follow-up in the Fall. We don't have the luxury any more of just sitting back with the usual Aftermarket routine.

When the industry looks at the Fall, it looks at one month, September, because October, November and first half of December are the busy silly season of the sector that no one wants to leave their business (they can't because they would not learn the math or key processes about how to change that format....they were too busy) which then leaves January and February for any other training as March is "March break" month. Oh and then January and February you will hear, "cash is too tight" so not a lot of shop owners attend in those months either. Now because of the procrastination, poor planning and lack of urgency to "get things done" you are talking one full more year before ANYTHING concrete just begins to happen which sets the Aftermarket another year to 1.5 years behind.

We are not getting it yet. The Aftermarket is a fast changing sector, however our "structure processes", our "habits" are out of the 1970"s.............we shut down all information development in the summer and most months of the year due to holidays, the shortage of staff, cash flow, coupled with "I'm too busy to address that" answers across the country.

Show me any other industry/profession that still thinks like this.

Our sector of the industry have such poor planning skills that we can't get the other months in the year to be proactive to true business development. Until we change this format and especially our attitude towards any development, technical and/or business, the Aftermarket will continue to fall behind the OEM.

When will we start to get it? Who out there will shake it up and put a sense of urgency to the messages?

Is the Aftermarket that complacent or so afraid of changing its format?

If that is the case, try to visualize what the true Aftermarket will look like five (5) years from now; please, really think about that in great detail......

Tuesday, June 14, 2011

Get Back To What Is Important

Amazingly when a shop is too busy the detail of client personal service is neglected. "The devil is in the detail". We don't seem to grasp that the customer/client does not understand the things we take for granted and one little obvious detail can take down reputations.

Consider these following responses from our customer/client follow-up service:

- got a quote on the car, went to pick it up and they had charged extra for something she didn't ask for (they put something else in her tires, she couldn't remember what it was called) and then when she tried to talk to them about it they put her on hold for a half an hour and then never called back.

- recently decided not to go back, the people have changed, and other shops tell me they were wrong in saying what needs to be fixed

- when I got the car and after spending $500, it had been left out and birds crapped all over it. The service was slower than expected (had to rent a car for a week) because they were backed up. My main complaint is the car wash was right next door or why did they not take the small amount of time to wash all that crap off?

So what is wrong with this picture? The team is not built or on board with client service and quality. The shop is lacking Professionalism and if the game is going to improve a clear focus on absolute customer/client service must be instilled or the bus must continue to change its passengers.

The Aftermarket has got to learn what it takes to give people a great EXPERIENCE!!

It also shows the structure is not in place within the business to offer staff a career over a job. Immature staff have a job, where as mature staff desire a career and take their day by day actions very seriously as they are focused on the client, not just themselves.

Is your shop looking after the detail?

Saturday, April 30, 2011

IS YOUR BUSINESS TAP TURNED ON OR OFF?

Shop owners have to examine their business plumbing to see if their TAP is turned on or off.

It is time to turn the TAP all the way on ......as far as it possibly can go and if it turns out it is not enough, then aggressively upgrade the internal system to achieve desired results.

There are 3 things to examine when looking at the TAP in the full "on" position.

1. "T" stands for "Team". Is the business operating and functioning completely as a team. Is the team strong which creates a positive culture that clients will recognize and appreciate. The team Professionals work together to ensure the client is always properly informed and the vehicle is fully inspected for safety and reliability. There is no room for individuals with selfish and inconsiderate attitudes on the team.

2. "A" stands for "Accountability". Every person must accept their responsibilities to the team to achieve results that exceeds clients expectations but also ensures the detailed procedures are followed that sustain a financially healthy and profitable business. This is the mind-set that Professionals embrace.

3. "P" stands for "Perseverance". Developing a professional shop culture which raises the bar to create an exceptional client experience is not an easy or short term task to achieve. It can take 2 to 4 years to put together. When the vision of the business is clearly defined and understood, then management and the team persevere through all the ups and downs because everyone knows that what they are creating as a business is the right thing to do. It builds pride and secures an exceptional career for everyone on the team.

If your business TAP is off........it is time to check the pressure and slowly start the procedures that will build and create an amazing future.

Tuesday, April 12, 2011

It Only Takes One Member To Destroy a Team

I have been witnessing a trend in the past six months which disturbs me greatly.

Owners today can feel threatened by immature staff members who believe they are above the rest of the shop employees because they feel they have "special skills" and are worthy of special privileges and treatment. These employees "with attitude" feel it is just too hard for them to be replaced, so in essence the owner is taken hostage by this person in their own business.

The bottom line fact in business is that no one is irreplaceable.

Shop owners must stop this person in their tracks and this employee either abides by and plays by the company culture rules as a team player or they are gone. The negative affect these bad employees have on the rest of the shop team is incredible which can destroy productivity and in turn, the client experience. When a shop becomes demoralized because the rest of the team watch as one member manipulates ownership, confidence and respect for the ownership from the rest of the team drops dramatically. The vision of the company is lost.

When ownership notices a player on the team falling out of line it is time for an immediate one on one session away from the shop, perhaps over dinner. The attitude is discussed and expectations of this employee are "reset".

If the employee does not come back fully on board and stays there, then the ownership must start the search immediately for a new player. Once the new player is found, then termination of the person with attitude must take place on the spot.

Today is about attitude, our responsibilities to the client and the total approach to the Profession. People who are not at that level of thinking have no place on the shop's Professional team. We take our careers and Professional responsibilities seriously; some do not.

Wednesday, April 6, 2011

FINALLY - Interest Is Showing Its Head Above The Sand

For the past seven years (yes 7) I have been talking about the new Aftermarket that was coming and the way we must rethink it in order to operate, grow and sustain market share. It has to go through a "Culture" change. Our company is always focused to study the industry moving 3 to 7 years out because we know it takes a minimum of 2 to 3 years to change a shop business and 4 to 6 years to change the culture of a Jobber business. It has been a very frustrating journey indeed because of sector inertia, procrastination and so many caught in the fires of the moment. I know my frustration is far from over.

That being said, I see that Shop Owners and Jobbers and even some manufacturing Reps are now trying to figure out this new Aftermarket and how to deal with it. In essence they are showing up late for the dinner party by about 2 hours and expecting a full meal; were cleaning the table from the main meal, talking desert and liqueurs at this point, but at least they have started to show up and that I commend them for. I guess better late then never. They actually made a positive decision and acted upon it. The key word is "acted". On the other hand, they have missed the munchies and the pre-dinner cocktails which always creates the atmosphere to engage people to partake in conversations of great interest which then carries on over to the main course meal.

The comparison to a dinner function is as far as I will take this because my point has been made.

The Business courses and the Association functions are growing in size than I have seen them in years and this is all positive. Some of the reason is due to the next generation attending who are keenly interested in what they have to do. They don't rely on the old ways; they have a desire to learn and keep learning. It is an understanding that education is a continuous thing they must embrace.

The fresh air I am now experiencing is to see the "older" executives attending from Jobber, Warehouse Distributors and Manufacturers level. They have another 5 TO 7 years left in their career and now they are trying to get their heads around it. I'll be honest, many do not agree with this new path we must go down because they have been ingrained in their ways. Their faces tell it all as they listen to the presentations. The issue I have with these people is they are not presenting a vision and new path to follow and proving it out to prove their comments and thinking....it must have "legs" or "longevity"....which has to be a concern because it is so easy to criticize anything different and tear it down. The point I am trying to make here is don't come with negativity, come with an open mind, stay open minded to discuss other ideas and present your ideas and solutions as a contribution....but make sure they are proven out as a win/win solution for our sector AND will stand the test of TIME rather than just a "one-side" win for the short term.

Let's keep going...........partake in these Business courses and Association functions from every level of the industry and engage in these important discussions..........because this is where our understanding, trust and relationships are built.

We can do this!!! Let's pledge to participate, engage and contribute to re-developing the Aftermarket into what will provide an exciting future for everyone working in it and their families. The next generation WILL win!!!!!

Monday, February 21, 2011

Post Regarding New Addition to AAEC

We just wanted to say, "Job well done!" The addition of the Rui Martins "Process for Success" 2 day course to the 3 day "High Performance Profitability in the New World of Automotive Maintenance" course by Bob has been much anticipated and very much valued. It truly has brought everything that Bob has been teaching together.

We can not say enough about the time and work involved in bringing such an amazing course together and how fortunate we are to have such knowledgeable and dedicated individuals behind us and the AAEC BEST concept. It just makes sense for these courses to go hand in hand.

Again, we did not know what would be in store for us, but were more than pleased with what was presented and how it was presented. We are no longer looking at the cost of such courses, but rather the importance of the course and the education that we all will gain from them. It is very important to have access to such courses. It also provides for an opportunity to be in a place outside of the work atmosphere and "bonding" with one another and having the chance to build relationships with our peers. The feedback from our staff was very positive. It was like a light went off in their heads. They finally understand what we are trying to accomplish and what we need to do to reach our goals. They could relate to Rui because he has been in a shop and he knows what goes on. They understand the processes of proper vehicle inspections, documentation and reporting procedures back to the front counter. They also understand the roles of the front counter and the processes that they have. We realize the importance of the roles that each one of us plays and we all know what that role is and that we must all be on the same page and reading from the same book to succeed. We "all" realize the importance of communication and how those lines must remain open because even the smallest breakdown can be detrimental. It is so important to have "every" member of our team go through the management training courses. We must set an example and walk, talk, live and breathe by that. We must make sure that our vision is clear, that we have the ability, motivation, resources and checks and balances in place to make change possible. If just one of these is missing, we end up with confusion, anxiety, frustration and a lack of confidence and our credibility is lost.

Rui is an amazing individual who is so passionate about this industry and wanting to see the necessary changes so that we can still have an Aftermarket in the future. This was very evident when he visited our shop to do an on site critique. We can not put into words what we took from spending that day with him. He was bursting with enthusiasm! He would be out in the back shop with our technicians and then would be almost running into my office to show me where we could be capturing more billed hours and then he would photocopy papers and go back out into the shop. He would relay the information to the techs and you could just see lights going off. It was an experience we will not soon forget. In fact, he came into my office so many times, that I had to tell him he was beginning to make me feel bad. All the money that we had "left" on the table that day, never mind over the years, we could very well have been retired years ago! It wasn't like we weren't getting the vehicles into the shop or doing the inspections, we were not billing for the work that we had performed. This was not something that we had ever done properly. Oh, if we could turn back time...

It is very important to be able to have the mathematical equations and know the numbers of your business and what they mean to your business and to your bottom line. That is why it is so imperative to have Bob's course and to understand the mathematics first. The math does not lie!!!!

We are so blessed to be a part of the AAEC BEST concept and cannot say enough about the value of having a Coach and Mentor such as Bob who is so committed to bringing about change in an industry that does not want to change. If only more people would see what his "vision" is and believe that it can happen. We believe and we know that it works. We are proof that it works. We know that this journey will have it's ups and downs and we are excited with the addition of another remarkable man, Rui Martins. We know that he has a huge heart, is very passionate and you can tell by talking to him how much he loves what he is doing. Having a team like this behind us and of course, our parts representative, Jamie, who has been a part of our journey every step of the way also. We have built a trusting relationship and we each know what our roles are and what we need to do to succeed!



Kevin & Stacey Gustafson

Gustafson's Auto Clinic Inc
3915 53 street
Athabasca, AB
T9S 1A7
p.(780) 675-5869
f.(780) 675-5884
Toll Free 1-877-675-5869

Tuesday, January 25, 2011

The Changing Marketplace Continues - Now What?

The trend in the Aftermarket continues it metamorphosis and we must figure out what to do.

Consider these points:

1). The consumer continues to challenge us and displays little patience. Their personal lives are stressed.

2). We have moved from 90 day oil changes to 180 day oil changes which revolves around winter and spring tire changes.

3). The rush at tire change over means billed hours per invoice plummet.

4). The consumer wants anything done on their vehicle only when they are in the shop at those 2 times a year. How does a shop schedule for preventative maintenance?

5). Parts suppliers are swamped with parts orders and must sort out inventory issues for a 90 day period and a short 60 day period then figure out how to survive the rest of the year.

What does this mean for the next number of years for a typical Independent shop and parts suppliers?

We are now coming down to 2 seasons which will give a shop 60 days when the weather turns nice in the spring and perhaps as much as 90 days in the Fall (about mid Oct to mid December) in which to make the necessary net income to carry a shop for the year. In between those periods we will experience a struggle to generate business unless the shop and the industry finds a solution that serves the consumer professionally and the consumer is willing to accept. It won't be easy but it means our Aftermarket business model must be re-invented once again.

Due to increased quality within the vehicle, breakdown just doesn't constantly occur. The consumer will be in to get the tires changed over from winter to all season in the Spring and back to winter tires in the Fall. When will you have time to inspect the vehicle for safety and reliability if that is the only time you see the consumer? It is therefore very important to communicate and educate the consumer to a minimum of annual but preferably semi-annual vehicle inspection. The reality is however, the consumer says fine, do it when you change my tires. How can we do that?

The problem here is, the shop can't function that way. The shop can no longer work like a dentist office with a visit every six months such as January and June visits because in reality the consumer reacts to the weather to have their vehicle looked after and that is the Spring and when the weather turns bad in the Fall. Exact dates do not exist.

Does the Aftermarket have the answers for this yet. No we do not BUT we must diligently work on it and solve this problem. If we don't, the Independent shop will be, if not already, in serious trouble along with their parts suppliers.

Open the discussion at every level of the industry to discuss this and let ideas roll out because it is about vehicle safety and reliability for the consumer coupled with financial survival of the Aftermarket.

Monday, January 10, 2011

Welcome to January and February

Nothing much changes within the Aftermarket.

January and February are months of "soft sales", "doubtfulness", "anguish" and don't forget the obvious "I'm going broke, I have no money" syndrome.

OK time for a wake-up call that I'm sure I will get negative feedback on.

Nothing has changed!!!!! and THAT is the point. The Aftermarket remains the same expecting different results......the professionals call that "insanity" YET we continue to stick with it.

TIME TO GET ON WITH IT AND CHANGE IT UP!!

The breakdown and repair world is dead if not totally dying a slow and tragic death depending on where you are located. We are now onto the NEXT generation, namely MANAGING our client's vehicles on their behalf.

This means that we must educate the consumer FIRST to the NEW world of vehicle technology. We have done such an incredible job keeping this a secret from them. We seem to be good once we get focussed and keeping the consumer in the dark is a milestone of what we have done well.

PREVENTATIVE MAINTENANCE is how the vehicle works today.........not break down and repair. It is our Professional responsibility to take charge on behalf of our CLIENT to ensure their vehicle is SAFE and RELIABLE. It means properly educating the client to HOW, we the Aftermarket, will look after you. We will ensure safety and reliability of your vehicle(s) but, in order to do that, we must start this way..........two full vehicle inspections per year, and we will manage that process for you. We must pre-book proper vehicle inspections 6 months apart but within a time frame that fits your schedule. We will take the responsibility of following up with you 2 weeks before the pre-booked appointment to ensure the date works for you. We will always advise you of any manufacturer concerns regarding your vehicle. We will mange this based on your driving habits, our weather conditions in our part of the country and your expectations with your vehicle. Let's have an open and sincere discussion about this process so we can understand your expectations.

We within the Aftermarket must change our thinking and Culture along with the "Processes" that can bring this to fruition.

Don't ignore the message.............this IS the new Aftermarket. Embrace it OR you will starve. I can't be more black and white about this message.