shop owner

March/April 2013

Success Strategies For 2013 No-Pressure Sales Tactics Customer Service Myths

Inaugural Federated‘Shop of the Year’

WeathersMotors, Inc.

No-Pressure Sales Tactics

Success Strategies for 2013

Shop Profile: Weathers Motors, Inc.

18

Shop Profile: Westside Auto Pros

Features

22 Weathers Motors, Inc., Media-Lima, PA

46 Westside Auto Pros, Des Moines, IA

6 Sales/Marketing:-No-Pressure Sales Tactics

18 Shop Operations:-Strategies For Success

34 10 Mistakes To Avoid When Selling Your Business, Part 2

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Departments

14 Executive Interview: Nick Jacquez, Affinia Global Chassis

32 Finance: 2012 Tax Changes

42 Customer Service: Common Myths Exposed

Shop Owner Staff

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This old school “A-B-C” (alwaysbe closing) approach can workto win some sales for short-termgains, but, in the long run, thisaggressive routine seldom pro-duces the lasting customer rela-tionships that pay long-termdividends.

One of the ultimate truths ofsales is that most everyoneloves to buy, but no one likesto be sold.

Contrary to this, I’ve seen fartoo many salespeople in andout of the tire/auto service in-dustry who take on an aggres-

sive sales effort thatwould have them head-ing out the door if theywere in their customers’shoes.

Extensive consumer research has proven thatthere’s a direct link between positive customerexperiences and greatersales results. Research also reveals that when there’s a disconnect between theway businesses go aboutselling their products, andthe way consumers wantto buy them, sales suffer.

A major dilemma thatcontributes to the use ofaggressive sales methodsis that, frankly, sometimesthey work. And, whenthey do, it promotes a

Sales|Marketing|

No-Pressure SellingIs A ‘No-Brainer’

As I pinball across North America training independent tire and autoservice businesses on sales and customer service, it has becomeclear that many salespeople are under the impression that they mustaggressively work to close the sale when interacting with customers,or they will lose business.

by Steve Ferrante, CEO, Sale Away LLC


counterproductive mentality wheresales managers often push harder andsalespeople believe the hard-nosedapproach is the right thing to do —unaware that they ultimately are los-ing more business (sales and profits)than they are gaining.

Case Study ExampleThe massive new car industry presentsa great case study to understand thecause and effect of high- and low-pressure methods on customer satis-faction and long-term sales perform-ance and profitability.

New car salespeople have tradition-ally been trained to play a game of

“cat and mouse” with the customerand operate under the misguided philosophy that customers don’t reallyleave the dealership to think about itand return to buy, so they must sellhard during the initial interaction,given that this is their only perceivedchance.

Want to know how much that caryou’re interested in costs? They can’ttell you. Not happy with the priceyou’re quoted? They’ll have to “seethe manager” to get a better price ap-proved and, all the while, you’ll beheld hostage at the mercy of the dealership.

This unaccommodating processoften leads to customers who are not

8 |Shop Owner|March|April 2013

satisfied with their shopping experi-ence, depart the dealership withoutpurchasing and do not return to buy,often leaving management to instructtheir salespeople that they must pushharder for the sale when the customeris there — a vicious cycle.

As documented in the book Satis-faction, by J.D. Power and Associ-ates, low- and high-pressure salesmethods are drastically different interms of producing customer satisfac-tion and sales/profits results. In itsanalysis of the automotive industry,J.D. Power evaluated the impact ofcustomer satisfaction on sales andprofitability, and concluded that thehigh-satisfaction group increasedsales by more than 40%, while thelow-satisfaction group actually lostsales.

Beyond manufacturer concerns ofproduct quality and execution, amajor contributingfactor to customersatisfaction ratingswas the customer’sfeelings toward thesales and service experience at the dealer-ship. Brands like Lexusand Acura, which excelled in dealershipsales and service ratings,performed dramatically better inboth sales and profit perform-ance, than did brands like Fordand Dodge, which scored low incustomer-satisfaction ratings.

Relationship-Based Sales

Like automotive dealerships, inde-pendent repair shops do not man-ufacture their product offerings,

but they can (and should) proactivelymanage the customer experience. Inthe automotive industry, the dealer-ships that rank at the top in sales per-formance had the best customer expe-rience ratings — and included aprocess in which customers did notbelieve they had to play a game orfeel pressured into buying. Instead,they were made comfortable by anenvironment with accommodatingand informative salespeople whohelped them buy — rather than tryingto sell them.

A good friend of mine recently tookhis car to a local auto service centerfor a state inspection and commentedto me that it was a great experience,saying that unlike several previousshops to which he had taken the fam-ily vehicles for their annual stickers,this place did not try to sell him anything.

www.ShopOwnerMag.com March|April 2013 |Shop Owner|9

Instead, he told me they simplyprovided a printout of all the recom-mended service items for the vehicleand advised him using a “just so youknow” consultative approach. “That’swhat I want. I don’t want to be soldanything, I just want to know whatthe car really needs, then I can de-cide to buy on my terms,” he said,adding, “I’ll bring my cars there fromnow on.”

The reality of the situation is thatboth this business and the shops hehad visited in the past all sought tosell him their services. However, as isso often the case, it’s not what youdo, but rather how you do it, thatmatters most. Rather than trying toclose the sale, the service advisorproperly executed a consultative approach, successfully opening therelationship and creating a long-termcustomer who has bought — andwill continue to buy — from theshop.

If you were in the business of

selling products to people once andnever had to interact with them again,then relationship-based selling effortswould be far less important. That isnot the case in the automotive servicebusiness.

People like to do business with people they like. As your shop’s prod-ucts and services often are identical tothose of your competitors, and every-one is in the same price ballpark, therelationships you create and maintainare your true competitive differen-tiators. SO


Steve Ferrante is the CEO ofSale Away LLC and has morethan 20 years of successfulsales, sales management andsales training experience. He isthe producer and host of the Pinnacle Performance salesand customer service training program that helps inde-pendent tire and auto service businesses improve cus-tomer relations and produce greater sales results. Stevecan be reached at 866-721-6086 ext. 701 or [email protected].


Corporate|Spotlight|

ADVERTISEMENT

Bosch’s Diagnostic Business Unit continues to pro-vide the aftermarket with programs that supportefficient and profitable service. Two such pro-grams introduced recently are theBosch National Wheel Service Promise,and the new technical support hotline.

1. Bosch National Wheel Service PromiseThe Bosch National Wheel ServicePromise guarantees that a Bosch au-thorized Wheel Service repairprovider will restore Bosch brandedwheel service equipment – tirechangers, wheel balancers, aligners or brakelathes, purchased on or after January 1, 2012 –to operating condition within 48 hours of repairbeing scheduled by calling 1-855-BoschTech (1-855-267-2483).

The National Wheel Service Promise guaran-tees that:

• Tech support will call back within two hoursof a problem being called in. If the hotline techis unable to diagnose the equipment repairneeded, the call will be transferred to a BoschTechnical Support specialist.

• Once diagnosed, repair will be scheduledwithin 24 hours, and completed within 48 hoursfrom the time it was scheduled.

• Service parts will be available 100 percentof the time and will be delivered within 24 hours.

• If Bosch determines that the equipmentcannot be repaired within 10 days, Bosch willprovide loaner equipment at no charge.

• Bosch will offer or extend the equipment’slabor warranty for six months if the equipmentcannot be repaired within 48 hours of the repair

being scheduled. Visit www.boschdiagnostics.comor call 1-855-BoschTech for details.

2. Technical Support Hotline Bosch has also launched a hotline for all techni-cal questions regarding Bosch parts, equipmentand services. The new toll free technical supportnumber is 1-855-BoschTech (1-855-267-2483).

“Our new hotline will field technical questions on parts, diagnostic tools includingwheel and tire service equipment, scan tools,ESI[tronic]™ software, as well as catalog ques-tions, consumer complaints and warranty issuesand Bosch training availability and scheduling,”said Michael Loth, Director of Technical Supportand Services for Bosch.

Robert Bosch LLCwww.boschautoparts.com

www.boschdiagnostics.com

New Bosch Programs SupportService Industry Efficiency and Profitability

The spin-off of Affinia’sbrake parts business is complete and Affinia is now focused on its filtration andchassis businesses. As you entera new phase in your brand’shistory, tell us what your chas-sis customers can expect fromthe Raybestos brand this year.

There are six thingsour customers canexpect. First and fore-most are chassisproducts that deliverthe Aftermarket’s beststeering performanceand ride quality.Raybestos chassisparts always deliverthe best design forthe application. After-market chassis suppli-ers can’t keep doing

what we did ten and twentyyears ago. Cars are more advanced now and the mix ofcars is different. There is a storybehind each new applicationand a real-world reason why we

do what we do when we pro-duce that replacement part.

There is still a misconceptionin the marketplace that syn-thetic bearings aren’t as goodas traditional metal on metaldesigns. That may be true incases where you need to accommodate for high load capability… but almost 80% ofnew vehicles use syntheticbearings in their low-frictionsteering and suspension sys-tems. In order to restore origi-nal steering control and ridequality, you need to use a design that matches the applied science of the originalpart. Otherwise, you risk creat-ing unacceptable ride charac-teristics, unhappy customersand comebacks.

We keep up with the tech-nology of new vehicles to besure we match their steeringand suspension specs. The design that goes into everyRaybestos chassis part is drivenby the technology of that vehi-


Executive|Interview|

Nicholas JacquezVice President of Marketing & Product Development, Affinia Global Chassis

With the sale of Affinia’s brake division, Nicholas Jacquez becamethe Vice President of Marketing and Product Development for AffiniaGlobal Chassis. With an even stronger focus on chassis parts,Jacquez explains how he and his team plan to refresh the relevanceof the Raybestos chassis brand and increase the efficiency andprofitability of its customers.

cle. We have low-friction designs foroptimal turning torque, but we stillmake accommodations for more demanding situations. When the application calls for it, we use metalon metal for high load-bearing and totake up road shock.

We also put ourmoney where ourmouth is and backevery ProfessionalGrade chassis prod-uct with the indus-try’s best parts andlabor guarantee. Ifany Raybestos Pro-fessional Grade®

chassis part everfails… the cost ofthe part… plusthe expense ofyour labor willbe refunded.

Beyond prod-uct, what elsedifferentiatesRaybestos chassis as a brand?

That brings us to the other fivethings I’d like to discuss.

Affinia is dedicated to maintainingits First-to-Market status in the After-market. We provide our customerswith increased sales opportunities byoffering exclusive access and exten-sive coverage for the latest import anddomestic VIO applications.

We also offer easy-to-use E-Cat,Web and paper catalogs… we main-tain an informative web site… and weoffer robust data attributes, like linedrawings and schematics to help iden-tify parts, and regular tech service bul-letins to round out our full range ofcustomer support.

Affinia offers world-class training

and dedicated technical support. TheRaybestos ACE™ Tech Hotline, Train-ing Center and Field Clinics give ourcustomers access to the industry’s latest technical information.

We also provide marketing withproven results. Our programs and pro-

motions haveindustry-wideappeal. Thisspring, wehave a sweep-stakes promo-tion that specifi-cally rewardscounterpeopleand professionaltechnicians. Andlater this summer,we’ll combineforces withRaybestos brakes,Joe Gibbs Racingand Toyota RacingDevelopment topresent a 2014 Toyota Tundra vehi-cle build and sweep-

stakes on the same caliber as lastyear’s Raybestos ROUSH® Stage 3Mustang promotion.

Before you became Vice Presidentof Marketing and Product Develop-ment for Affinia Global Chassis, youserved as the Director of Market Science. What past experiences areyou carrying over into your new rolewith Affinia?

Market Science has always been apassion of mine. Affinia has devel-oped a cutting edge analytic tool thatcan help our customers “Stock to Demand.” Very simply, our programhelps WDs and shop owners stock according to the vehicle populations


and demand/failure rates in their specific market(s).

As vehicle populations change, thiseasy to use web portal will help WDsand shop owners make sense ofchanging demand to help them deter-mine their correct inventory mix. Acombination of zip code level VIO,survey data and proprietary analyticshelp us predict failure rates by year,make, model and state.

How is what you offer differentfrom other category managementtools?

Traditional category managementtends to focus solely on historicaldata. Sales history is certainly impor-tant, but history doesn’t always do agood job of predicting what will sell.Our tool analyzes repair rates andmarket opportunities to give our customers the information they needto optimize their inventory for theirspecific region of the country at specific times of the year.

Large amounts of working capitalare tied up in excessive and unneces-sary inventory. But in just a couple ofminutes, customers can learn themost popular chassis part numbers intheir market. Combined with saleshistory, this helps them calculate thetrue demand for their area. They canthen tailor an inventory…location bylocation…to satisfy existing needs

and satisfy future demand.This “predictive inventory” benefits

customers by allowing them to spendless time managing inventory andmore time selling. It gives them increased opportunities for strategicbusiness planning, which can helpthem customize assortments and mar-keting campaigns for their region.

Affinia’s Market Science group alsooffers its customers other business intelligence tools. We offer BusinessConsulting for channel partners, salesand product teams…Planning andTactical Resources to deliver customdata on end users, channels and themarketplace…Demand Forecasting toidentify marketplace trends and opportunities...and Proprietary MarketResearch for guidance with methodsand spending.

In 50 words or less…WhyRaybestos Chassis for today’s shopowners?

Raybestos quality chassis partsmatch OE designs to deliver like-newperformance, happier customers andfewer comebacks. They are competi-tively priced, with superior, first tomarket coverage. You get the indus-try’s best warranty and our exclusiveinventory optimization tool, plus industry leading data management,technical training and marketing support! SO


We are also in an era whereaswith each passing day technol-ogy is making pricing more ac-cessible to the general public,customer expectations of trans-parency are at an all-time high,and social media is providingyour customers with a platformfor sharing their opinions. Missjust one of these, and you willstruggle to grow your business.

So here are our recommenda-tions at Elite Worldwide:

With the understanding thatyou will be seeing your cus-tomers less frequently, let’s startwith keeping the customersyou currently have. As soon aspossible, have a meeting withyour entire crew and discussthe future of your business, andhow you are going to constant-

Shop|Operations|

Strategies for SuccessIn Building World-Class Automotive Repair Shops in 2013

If you want to ensure that 2013 is your shop’s best year yet, thereare a number of things you need to consider. Vehicles are being builtbetter, and service intervals are constantly being extended.Accordingly, you will be seeing your customers less frequently.

by Bob Cooper, president, Elite Worldwide, Inc.


ly work on improving the customerexperience. Then, schedule the timeto review every customer touch point,from incoming calls, all the waythrough car delivery and customerfollow-up. Although there are manycustomer reward and loyalty pro-grams, I am sure you will agree thatthe best way to generate repeat busi-ness is by providing your customerswith extraordinary service at everytouch point.

Secondly, you need to ensure youhave a marketing plan in place thatnot only brings in new customers, but,more importantly, the right kind ofcustomers. The top shops that wework with at Elite know who their tar-geted customers are, and they targettheir marketing programs directly atthose potential customers. In addition

to knowing who your targeted customers are, you will need to ensure that you direct at least 50% ofyour marketing budget toward non-traditional marketing programs.

With the growing number of adver-tising mediums that are available, andwith the fragmentation of the differentmedia, you will need to invest innon-traditional campaigns that willnot only reach your targeted customers, but will resonate withthem as well.

These non-traditional campaignsshould include advertising at localevents, getting involved in fundraisersand charities, participating in commu-nity organizations, etc. When peopleknow that you care about your com-munity, and the people within yourcommunity, they will view you as


having the values that they are look-ing for in a service provider.

There has never been a more im-portant time to build one’s brand inthe automotive repair business. Youneed to ensure that your name iseverywhere, and that you deliver aconsistent message. Knowing your tar-geted customer is one thing, but pro-viding them with a consistent mes-sage, and delivering on that message,is brand building. The top shops inAmerica understand this, and theywill certainly be using a well-execut-ed brand-building strategy in the coming years.

As we move through 2013 and for-ward, you will also need to ensurethat your service advisors are welltrained when it comes to helping yourcustomers make good decisions intaking care of their vehicles. Withservice intervals being whatthey are, it may be a goodwhile before you see thatcustomer again, so asyou well know, therecommended serv-ices that aren’t performed duringtheir visit toyour shop,may never

be performed. In summary, here is what you are

going to need to do to make sure that2013 is your best year ever.

1. Set your goals, and have a meet-ing with your entire team. This iswhere you need to discuss your goals,and how you will be reviewing everycustomer touch point to ensure it’s apositive experience.

2. You will also need to ensure thatyou have a well-thought-out market-ing plan in place that brings in theright kinds of customers on whom youwill need to focus your brand-building

efforts.3. You

will needto ensurethat youhave ex-traordinary

peopleworking with

you who arewell trained, and

who live by a principle that they will

never put money aheadof people.You have my promise:

Apply these recommendationsto your business, and you may

very well findthat 2013 is your

shop’s best yearever. SO


Since 1990, Bob Cooper hasbeen the president of EliteWorldwide Inc. (www.EliteWorldwideStore.com), anethics-based company that helps both struggling andsuccessful shop owners take their businesses to newlevels through one-on-one coaching from the industry’stop experts. The company also offers shop owners sales,marketing, and management seminars, along with service advisor training. You can contact Bob at [email protected], or at 800-204-3548.

Larry Weathers III, owner

What some shop owners might consider a negative has actuallybeen a positive for Weathers Motors, Inc. in Media-Lima, PA. At itscurrent location since 1922, the business started as a repair shop,servicing Model T Fords and Packards, but now repairs any make

and model of vehicle. For many years, Weathers Motors was a newcar dealership selling and servicing Chrysler vehicles.

“We started out with Plymouth,then transformed into a Dodgedealership also doing repairs,”says third-generation OwnerLarry Weathers III. “Then inJune 2009, Chrysler wentthrough bankruptcy and cut789 dealers out of the network.We were one of the dealersthat got cut. But repairshave continued from1922 to now.”

Losing the Chrysler fran-chise, Weathers says, actu-ally worked in the shop’sfavor since it’s now free towork on all makes and mod-els. Add to that a large cus-tomer base, and the businessis still going strong all thoseyears after Larry Weathers Sr.started the shop.

“My grandfather (pictured atright) was just so fair and hon-est from day one,” Weatherssays. “His honesty brought peo-ple back. People talked about itand by word of mouth toldother people, and then theywould come here, too.”

Weathers Motors is now providing service to fourth-gen-eration customers. Those kindof long-term partnerships arekey to the success of any shop,and with the transition to an independent repair facility,Weathers

Shop|Profile|

Weathers Motors, Inc.Federated ‘Shop of the Year’


by Debbie Briggs, contributing writer

says the shop’s partnership with localfamily-owned parts supplier, BerrodinCo., was vital to its success. BerrodinCo. is one of the charter members ofthe Federated Auto Parts program dis-tribution group, a member since1985.

“Working with Federated memberBerrodin has been great — great partsvalue, availability and outstandingservice,” Weathers says. “Parts deliver-ies are very efficient and dependable.Berrodin has been very helpful withmonthly specials, on-time deliveries,clinics, expert counter service, andthey respond to questions and prob-lems quickly; they provide great cus-tomer service and quality products.”

It’s no surprise that the excellentcustomer service Weathers Motors hascome to expect from Berrodin is the

same top-notch service they offer theirown customers.

“We have been able to deliver aquality product to our customers, effi-ciently and effectively,” Weathers saysof the shop’s affiliation with Federatedand Berrodin. “There are no problemswith parts returns or faulty parts. Thetime that a customer’s car is down hasbeen held to a minimum.”

Federated ‘Shop of the Year’It should come as no surprise that outof hundreds of nominated shops,Weathers Motors, Inc. was chosen asFederated’s first-ever “Shop of theYear” award winner. Federated waslooking for a top shop to honor for itsknowledgeable, professional servicetechnicians, along with superior


Left to right: Joshua Sellers, Paul Curley, Bill O’Brien, Chris Mattero, Jim Walsh, Larry Weathers III,Dave Byrd, Evelyn Devito, Jim Mitchell and Rich Dominico

customer serviceand repairs.

“It was quite an honor and a sur-prise to be selected out of the entirecountry,” Weathers says, adding thathe’ll definitely promote the honor inhis advertising and on his website.“This is an award that leaves an impression on people.”

Both critical to winning the inaugu-ral top shop award and providingquality repairs is a staff of seasonedtechnicians who know how to repaira vehicle right the first time. Add an

attractive benefits package andpositive work environment,and it’s easy to see why theshop attracts new talent mainlythrough referrals and word ofmouth.

“We employ four full-timetechnicians and one part-timetechnician,” Weathers says. “All

are ASE-certified and have GM, Ford,Chrysler, Honda and Toyota training.We treat employees fairly, and we staycompetitive with current pay scales,we keep the shop safe, and offer a401K and profit sharing plan andhealth benefits.”

Community InvolvementAmong the criteria for the inauguraltop shop award was active involve-


Both critical to winningthe inauguraltop shop awardand providingquality repairs isa staff of seasoned technicians whoknow how to repair a vehicleright the first time.

ment in the community with a trackrecord of achieving excellence.Weathers Motors more than fits thebill, with involvement in several localgroups, including the local Middle-town Business Association and thePennsylvania Automotive Association.

“We also belong to the Rotary Clubof Media and sit on the Board of Rid-dle Memorial Hospital, NeumannUniversity and the Red Cross,” Weath-ers says. “We’re active in Boy Scoutsand the local high school sports andmusic programs. They all help to inte-grate us in the community and pro-mote goodwill.”

In addition to being well known inthe community, Weathers says theshop attracts customers by cable TV,

internet and direct mail — and bytreating customers with respect.

“We keep them by giving themgreat service at a great price,” Weath-ers stresses. “We do not oversell, wedo not do work that doesn’t have tobe done, and we recommend workand ask for approval.”

Consistent specials for oil changes,with combination pricing along withother services, are very popular, andtires are offered at a very competitiveprice. Rebate programs on select partsand a quarterly direct-mail programthat goes to all customers in targetedzip codes also works well.

“We also drop customers off andshuttle them where they need to go,”Weathers says. “We try to really listen



“We keep customers by givingthem great service at a greatprice,” Weathers stresses. “Wedo not oversell, we do not dowork that doesn’t have to bedone, and we recommendwork and ask for approval.”

to the customer and be flexiblein their needs and accommo-date them.”

In addition to more tradition-al ways to keep customerscoming through the doors,Weathers says a strong internetpresence has given business aboost. Social media is some-thing shops can’t afford tooverlook.

“Our website from award-winning designer Dealer.comacts as our billboard, and wealso regularly post on Face-book,” Weathers says. “Wepost service specials, and peo-ple do click on them and bringtheir vehicles in. We’ll alsopost service tips, such as theimportance of oil changes. It’san image builder, and it makespeople think about their car.”

So what’s been the secret toWeathers Motors’ longevity?According to Larry Weathers, itreally comes down to happycustomers.

“The number one thing ishaving qualified technicians,”he concludes. “Right up therewith that is parts availabilityand the quality of parts —good parts and having themdelivered on time. Customerswant their cars back quickly.You need great communicationbetween the tech, the serviceadvisor and the customer.”

It’s been a winning combina-tion for this long-running shop— one that’s worthy of an industry accolade like Federat-ed “Shop of the Year.” SO

Weathers Motors Inc. believesin instituting “green” initiativesand it has been a plus for theshop and the environment.

The shop recycles all plastic,cardboard, glass and oil, plus ituses a shop heater to recyclewaste oil. “Recycling has raisedthe awareness level of howimportant it is to protect ourenvironment,” says ownerLarry Weathers III. “It sendsthe message in-house and tocustomers that we are respon-sible business people.”

Green Is Good



|Finance|

2012 Tax ChangesFor Businesses

It’s that time of year again: tax time. Whether youfile as a corporation or sole proprietor, here’s whatbusiness owners need to know about tax changesfor the 2012 tax year.

by Richard Lipton, Richard L. Lipton CPA & Associates, LLC

Standard Mileage Rates: The standard mileage ratein 2012 is 55.5 cents per business mile driven, 23 cents permile driven for medical or moving purposes, and 14 cents permile driven in service of charitable organizations.


Credit for Hiring Qualified Veterans: The maximum credit thatemployers can take for hiring quali-fied veterans in 2012 is

$9,600 per worker for em-ployers that operate for-

profit businesses, or $6,240 perworker for tax-exempt organiza-tions. See Facts About TheVeterans Opportunity toWork (VOW) to Hire Heroes Act of 2011 atwww.liptoncpa.com/newsletter.php?date=122012#2

Health Care TaxCredit for SmallBusinesses: Small busi-ness employers who pay atleast half the premiums forsingle health insurance cov-erage for their employeesmay be eligible for theSmall Business Health CareTax Credit, as long as theyemploy fewer than theequivalent of 25 full-timeworkers and average annu-al wages do not exceed$50,000. The credit can beclaimed in tax years 2010through 2013, and for anytwo years after that. Themaximum credit that can beclaimed is an amount equalto 35% of premiums paidby eligible small businesses.

Section 179 Expensing:In 2012, the maximum Section179 expense deduction forequipment purchases is$139,000 ($174,000 for quali-fied enterprise zone property)of the first $560,000 of certainbusiness property placed inservice during the year. Thebonus depreciation is 50% forqualified property that exceedsthe threshold amount.

The majority of challenges and frustrations experienced by sellers canbe avoided with solid information about the pitfalls of selling abusiness in today’s market. While there are dozens of challenges toovercome, in the January/February 2013 issue the first five mostcommon mistakes were discussed that can have drastic repercussionsand cause both stress and loss of value on a business sale.

Mistake 6 … Failure toPlay a Positive Role inInteracting with a Buyer

As an expert in your business,you can play a valuable role instaying engaged and working inpartnership with your broker.While some brokers, especiallythose who previously sold realestate, go out of their way tokeep buyers and sellers from directly interacting, this is rarelythe best method to achieve asuccessful sale in the shortestamount of time.

Although your broker willwork hard to find qualified buy-ers for your business, no one hasmore motivation to sell, or inside

knowledge of the business, thanyou do. You can play a key rolein instilling confidence in thebuyer that the business can bepurchased and managed suc-cessfully. A buyer who can visu-alize himself running the busi-ness is more apt to have acomfort level after interacting directly with the seller and de-veloping a sense of rapport.

Buyers traditionally are signifi-cantly apprehensive about thechallenges that they face in purchasing a business, and anything that you can do tohelp the buyer envision himselfin your role increases the likeli-hood that he will have the

Buying & Selling|An Aftermarket Business

10 Mistakes to AvoidWhen Selling Your BusinessAn Insider’s Guide, Part 2


by Art Blumenthal, MBA CBI

The five mistakes already discussed were:Mistake 1…Failure to Prepare and Properly Package Your BusinessMistake 2…Failure to Properly Price the BusinessMistake 3…Failure to Sell Your Business Before You Need to Sell Your BusinessMistake 4…Failure to Leverage the Right ProfessionalsMistake 5…Failure to Maintain Confidentiality During the Sales Process

courage to make a decision to submit anoffer and close onyour business.

The questions thatyou get from buyerinteraction will alsogive you insight intohow a buyer per-ceives your businessand their concerns.

Seeing your busi-ness through thebuyer’s eyes will helpyou in future discussions withprospects and recognizing (and hope-fully doing something about) whatever

problems or deficien-cies are keeping buy-ers from seriouslyconsidering a purchase.

You and your broker should havedefined roles and responsibilities in thesales process so thatthere are no misun-derstandings and youwork as a team. Hereare a few suggested

guidelines for the do’s and don’ts ofcommunications with buyer prospects:


Art Blumenthal Sales TipYou can play a key role ininstilling confidence in thebuyer that the business canbe purchased and managedsuccessfully.

Do’s Don’ts• DO your best to follow the establishedroles and responsibilities between the sellerand broker, allowing the broker to orches-trate the step-by-step process to qualify, educate and close the deal with buyers.

• DO share with a buyer what you might dodifferently in your daily operations to increasesales and profits if you were to keep the busi-ness. Buyers want to feel that the businesshas upside potential and recognize that everybusiness owner has ideas that just haven’tbeen implemented as yet.

• DO talk about what you like about yourbusiness and the rewards that you feel youhave received over the years of ownership.Most buyers are looking for independenceand control over their own destiny.

• DO allow yourself to judge the backgroundand capabilities of buyer prospects and theirlikelihood of success if they purchase yourbusiness, especially if you are offering sellerfinancing and have a vested financial interestin their ability to make payments to you.

• DON’T allow a buyer to lure you into directnegotiations. It’s OK to participate in the salespitch about the benefits of your business, butleave discussions about purchase price, termsand financing to the broker.

• DON’T volunteer “subjective” negativeinformation about your business. Be honestin answering direct questions with accuratefacts and don’t misrepresent your business.Present your business in the best possiblelight. Focus on the positive when interactingwith a buyer prospect.

• DON’T let recent events, trends or otherinformation that are impacting your decisionto sell the business get the best of you. Try tofocus your thoughts on the positive rewardsof business ownership.

• DON’T think, however, that no one willever be able to fill your shoes. If you are offer-ing seller financing, you need to accept somelevel of risk and do your best to find a moti-vated buyer candidate who’s willing to learnthe skills necessary to run your business.

Mistake 7 … Failure toRecognize the DifferenceBetween Serious Buyers andTire Kickers

Did you know that only 2% of thepeople who inquire about businesseson the Internet “businesses for sale”sites will actually purchase one? Theother 98% are suspects who lack thecourage and conviction to followthrough.

Many are searching for the illusory“perfect” business, while others expectthe seller to finance the whole busi-ness, have other unrealistic expecta-tions or trouble making a decision.Wasting time on those who aren’t serious about purchasing a businesstakes away valuable time from yourinteraction with those buyers who really do want to buy.

Many buyers exhibit a great deal ofinterest and submit a Letter of Intentor Offer to Purchase. Unfortunately,some buyers will then get cold feetand have second thoughts, or will letthe smallest of obstacles stop them intheir tracks.

DIY sellers can become time con-strained in properly managing theirbusiness when their time is consumedby unqualified or less-than-seriousbuyer candidates. Buyers who are notpre-qualified and are not prepared tomake an offer will not feel guiltyabout wasting your time.

A good business broker does notpre-judge a buyer prospect, but isskilled at discerning the serious buyerswho are financially qualified to buyyour business. It is important to focustime and energy on serious buyers, not


Consider this…It is estimated that about20% of businesses will sell,which means that 80% willnot sell! What can you do toincrease your opportunity tosell your business? Avoidthe Top 10 mistakes whenselling your business.

tire kickers who areout to waste your timewith “analysis paraly-sis,” finding thingswrong with your busi-ness, and making lowball offers to test yourdesperation.

Mistake 8 …Failure to KeepYour Foot on theGas During theSales Process

It is a mistake to lose sight of what ittakes to get to the finish line. Finding abuyer or even securing an Offer to Pur-chase does not mean that your businessis sold. However tempting it may be torelax, a sudden fall in sales and profits,or a loss of key employees, might trig-ger a buyer to look for a way out of thedeal or renegotiate price. Other dealsfall through because of inability to se-cure financing, unforeseen environmen-tal conditions, family or partnership dis-agreements with the buyer, or notgetting approval from a franchisor.

The sales process can be a mine-field beset with hid-den problems. If youever played Chutes &Ladders as a kid, youknow what it’s like togo backward or startthe game from thebeginning. Losing abuyer when in sightof the closing tablecan happen with theroll of the dice.

What’s important isfor you to remain fo-cused on managingyour business for

maximum profitabilityand stability. Losing aserious buyer afteryou are already plan-ning your post-closingtrip around the worldcan be a gut-wrench-ing experience. Hav-ing to re-evaluateyour Asking Price because profits havedropped in the mean-time can be like rubbing salt in thewound.

Don’t make the mistake of takingyour foot off the gas during the salesprocess. Even in good times, it cantake a while to find the right buyerand navigate the complexities of getting to the closing table.

In the meantime, keep driving your-self and your business on a steadycourse, just as if you were keeping thebusiness long term.

Mistake 9 … Failure toConsider How Your BusinessSale Will Be Financed

Few buyers will be ina position to be ableto pay cash for yourbusiness. In today’sbusiness-for-sale mar-ketplace, all cashsales are unrealistic,unless you are will-ing to make the Ask-ing Price extremelyattractive as com-pared to other avail-able business oppor-tunities. Today’sbuyers are more like-ly to need help in


Art Blumenthal Sales TipA good business broker doesnot pre-judge a buyerprospect, but is skilled at dis-cerning the serious buyerswho are financially qualifiedto buy your business.

Art Blumenthal Sales TipA broker who can get yourbusiness “pre-qualified” by alending institution has provid-ed your business with a sweetmarketing advantage thatwill attract buyers like bearsto honey.

securing third-partyfinancing or rely onyou for seller financ-ing of 50-80% of theAsking Price.

It is important toconsult with your ac-countant for tax ad-vice on the implica-tions of spreading thesales proceeds over amulti-year period.

A good business broker will havecontacts with major national banksthat finance business acquisitions andreal estate under an SBA loan guaran-tee program. A broker who can getyour business “pre-qualified” by alending institution has provided yourbusiness with a sweet marketing ad-vantage.

The key to pre-qualification andbank financing are tax returns and financials that demonstrate the abilityof the business to generate a cashflow that more than covers the debtservice and leaves the buyer sufficientfunds to provide reasonable compen-sation. Yes, the bank will take intoconsideration non-cash expenses likedepreciation and amortization, as wellas the seller’s current compensationand benefits. However, if you areplanning to sell your business in theforeseeable future, don’t make themistake of being greedy and loadingup your tax return and P & L with somany personal expenses and perksthat the business shows no profit or abig loss.

If your business doesn’t look goodon paper, then it’s time to accept thereality of seller financing if you wishto get a fair price for your business.Keep in mind that even if the buyerhas a significant amount of cash to

invest, the buyer ismore likely to lever-age that cash andpurchase a largerbusiness with a highercash flow or perhapsan automotive serviceenterprise with multi-ple locations.

Mistake 10 … Failure toNegotiate Fishing for the right buyer can taketime, even with the best of advertisingand marketing materials to attract interest. With hard work and luck, serious buyers will find the bait andbe lured into the opportunity.

Hopefully, multiple buyers willshow an interest. You may receivemore than one offer, significantlystrengthening your negotiating posi-tion. Nonetheless, you need to be prepared to negotiate and listen to theadvice of the professionals that youhired to provide guidance.

There may come a time when anoffer comes in and you have to act onit. Procrastination or indecisiveness inaccepting a reasonable offer or negoti-ating a compromisecan be a mistake,as you risk losing aserious buyer. SO


Leveraging more than 30years of experience as bothan aftermarket businessowner and aftermarket technology executive, Art Blumenthal LLC provides business intermediary and advisory services to both buyers and sellers of industry businesses of all sizes. Art is a member of IBBA (International Business Brokers Association, Inc.). For more information, or to initiate a no-obligation confidentialconsultation, visit www.art-blumenthal.com.

Art Blumenthal Sales TipBe prepared to be flexible andavailable for serious buyers.

Though front-line employeesbear the brunt of customers’ requests, when it comes downto it, we’re all in the customerservice business.

Let’s take a moment to breakdown some of the most perva-sive myths of customer service,get into our customers’ heads

for a

moment, and really figure outthe best way to serve them andturn a problem customer into acustomer for life.

1. The Customer is AlwaysRight. This seems like the bestpossible place to start. Everyoneknows the customer isn’t always right, but if you’re smart,you’ll never remind an iratecustomer of this fact.

The customer isn’t alwaysright, but he or she is always

the customer. An argumentabout who is right and

who is wrong isn’tgoing to solve any-one’s problems.Calmly discuss theissue with the cus-tomer, and eventually

your customer willcalm down too. Even if

you know your customer is inthe wrong, take the time tofully investigate their claims,and let them see you do it. The


Customer|Service|

Common CustomerService MythsWork As A Team To Ensure ‘Customers For Life’

Ever since the phrase “the customer is always right” was coined, itsurely has been the bane of every worker whose title includes theword “associate” or “representative.”

by Jody DeVere, CEO, AskPatty.com

customer may end up being wrong,but if they feel their claims have atleast been taken seriously, that goes along way.

2. Price is Most Important to aCustomer. I see this myth all the timein the auto industry. It’s very temptingto assume that price is the most im-portant metric to a customer, but thatsimply isn’t the case. While many cus-tomers do have a budget to consider,and price certainly plays a part, theoverwhelming majority of customers,particularly when it comes to vehiclerepair, are perfectly willing to paymore for quality products from honest,reputable businesses. When things gettight, don’t cut prices; add service.

3. Being Friendly and Polite isEverything. You’ve kept your cool,you’ve met every rebuttal and com-plaint with a smile and a nod, andyour customer still isn’t happy. If youfind yourself in this situation, it’ssometimes easy to feel like you’re atthe end of your rope.

In the end, customers want results.You can be as nice as you’d like, butsmiles won’t diffuse a customer whodoesn’t find value in what they paidfor. And, if there is a situation whenyour tech or service writer can’t reme-dy a situation, they need to make surethe customer understands they’vedone all they can. They should alsomake an introduction to a manager orthe owner, and keep smiling — all thewhile listening to what the customer


“When things get tight, don’t cut prices;add service.”

wants — and do their best to deliver.

4. Front-Line Employees are Responsible for Customer Service.We’re all in the customer service busi-ness, not just the employees at thefront counter. Good customer serviceis a cultural thing, and your business’culture starts at the top!

Don’t just hire, train and forget it.It’s up to you to set an example. Makesure customer service stays on yourradar by not only taking complaintsand negative customers seriously —but by also making a big deal out ofevery piece of positive feedback youget. Make sure your staff knows howimportant great customer service is to

you, and strive to maintain the samehigh standard to which you holdthem.

5. Happy Customers Tell Two People, Unhappy Customers TellSix. I’m guilty of using this old cliché myself, but it’s simply not true. At review sites like Yelp, we find that theoverwhelming majority of reviews arepositive ones! Not only that, but whencustomers shop for reviews, theyaren’t looking for the negative ones.They want to know who does greatwork, not who to avoid. Even oneglowing, positive review can have abig impact — and bring in new customers. SO


Jody DeVere is the CEO ofAskPatty.com. Visitwww.askpatty.com/getcertified to learn more about howto become a Certified Female Friendly Shop.

“Even one glowing, positive review can have a big impact — and bring in new customers.”

“Our goal is to provide the best customer serviceexperience of anybusiness in our city — not just auto repair.”

– Ron Haugen, owner

In today’s ever-changing digital media landscape, with thousands oftweets per minute and videos going viral every day, it’s becoming

more and more important for shop owners to stay on top ofmarketing technology. Ron Haugen, owner of Westside Auto Pros in

Des Moines, IA, has seen first-hand how a well-mastered, intentionalsocial media plan can attract new customers.

“We have a very comprehen-sive marketing plan and budgetthat includes internet, televi-sion, direct mail and socialmedia,” Haugen says of his suc-cessful 16-year-old business.“We have focused on branding,which gives us top-of-mindawareness for both first-timeand repeat customers.

“People will post on theirwall and say, I need a plumber.Who should I call?” he contin-ues. “Eight people will immedi-ately reply back. People turn toFacebook and other socialmedia; it’s the referral source oftoday.”

Haugen says he relies on TheBuyosphere, a marketingagency with a customer servicespin, to handle his social mediaposting, and advises hiring oth-ers who are experts in theirfield to manage areas thatmaybe aren’t your cup of tea.

“As far as Facebook, Twitterand LinkedIn, the bulk of that ishandled by The Buyosphere,”

he says. “They do such a goodjob that, just recently, readers ofCityview, a weekly independentnewspaper in the Des Moinesarea, voted Westside Auto Pros‘Best Tweeter,’ an honor we’vewon two years in a row.”

Complement that well-crafted social media plan with servicereminders and a search engineoptimized (SEO) website by AutoVitals, as well as e-newsletters by Greenmail, andyou’ve got a powerful internetpresence that not only strength-ens the Westside Auto Prosbrand, but also is a force in attracting new customers.

“The vast majority of buyingdecisions are made with someform of internet search or research,” Haugen says. “Agood website with excellentSEO and SEM (search enginemarketing) allows any businessto be a part of that decision.Web presence is not an option,it is a must. And, it must bedone right.”

Shop|Profile|

Westside Auto ProsInternet-Savvy Shop Still Going Strong After 16 Years


by Debbie Briggs, contributing writer

Gaining & RetainingCustomers

But once you get customersin the door, paramount is aknowledgeable, friendly staffthat makes the car repairprocess a positive one. Afterall, Haugen says, you haveonly one chance to make agreat first impression.

“If your staff and facilityaren’t clean and professional,then the customer perception isthat the service and repairs won’tbe either,” he stresses. “If the interac-tion, from the very first phone call tothe actual visit, is not professional andfriendly, then the perception is the entire process won’t be either. Yourshop’s appearance will determinewhether or not the customer buys

and/or returns.”Haugen feels the staff at Westside

Auto Pros sets the shop apart from thecompetition, and it starts during thenew hire interview process.

“From our interviewing and screen-ing during the hiring process, to theweekly customer service training andsecret shoppers from The Buyosphere,


we are never done learn-ing and improving,” hesays. “Our goal is to pro-vide the best customerservice experience ofany business in our city— not just auto repair.”

Westside Auto Prosemploys six techs who are all ASEMaster Technicians; a requirement towork at the shop. Even oil changesare done by a Master Tech. A greatwork environment, clean facility, well-structured policies and procedures,and a generous benefit plan all workto ensure employees stay with theshop for many years. But when thereis a need to hire new staff, Haugenhas his pick of applicants.

“We have technicians apply for positions every month, even though

we arenot looking for someone,” he says.“We keep the great resumes on file,and if we have an opening, we turn tothose resumes. We have a good repu-tation in town.”

Technicians are also required tocomplete 40 hours of training everyyear — but it’s more like 60. And,while it’s mainly on-site classes, techsalso attend Bosch Technical Trainingin Chicago. Haugen himself, alongwith the front counter staff, also


receive solid training throughoutthe year, including what’s offered atASA’s Vision Hi-Tech Training &Expo each year.

Shop Owner Training“Some of the most overlookedtraining out there is for shop owners,” Haugen says. “Most shopowners started out as techniciansand grew into owning a shop.Throw technical out the window;HR, financial management, market-ing and how to run a business —that’s what shop owners need toknow. I was in the same boat, butthen I sought education and train-ing. It made a big difference.”

Haugen points to RLO Trainings Bottom Line Impact Group as thebiggest influencer on how to bettermanage his shop.

“Learning and implementing financial benchmarks, not only onthe income side but on the


Ron Haugen’s Keys to Success

#1. Top level staff. These are thepeople who interact with your customers,fix the cars, and accomplish the goals andobjectives you as an owner give them. Tocompromise on the quality of the people inyour business simply does not make sense.Start with good people, then train and mo-tivate them to be great.

#2. Monitor your key numbersand know the benchmarks. Alsounderstand how to fix them if they are notright. Competition and the cost of operatinga shop has made it more important thanever that an owner focus on being anowner, operating his business, not an employee working in it.

#3. Do whatever it takes to takecare of your customers and youremployees. If you do this, somewherein the middle it will all happen for you.

expense side, is key,” he says. “Youcan track your different expenses, buthow do they stack up to other shopsthat are similar to yours? What aboutyour profit margins? The training andaccountability you get in a 20 Groupis second to none.”

The bottom line, Haugen con-cludes, is that technology and market-ing continue to change, and as a shopowner, you have to keep up with it.

“I compare it to a NASCAR race,”

he says. “If you’re in the lead andyou’re competitors are two or threecar lengths behind you, you have tokeep the accelerator pushed all theway to the floor or they’ll pass you. IfI let off, other shops will pass us inmarketing or customer service.”

Given Haugen’s whole-hearted dedication to both, Westside AutoPros should stay in the lead for manyyears to come. SO


“If the interaction, from the very first phonecall to the actual visit, is not professionaland friendly, then the perception is the

entire process won’t be either.”

shop owner

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