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May/June 2014 Happier Customers Working ‘On’ Your Business ‘Gen Y’ Workforce Empowered Employees Team Up For Service Excellence Eagle Automotive It’s more than just fixing cars

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Shop Owner brings independent repair shop owners a wealth of shop management information to help better run their businesses. Founded: 2010 www.ShopOwnerMag.com

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Page 1: Shop Owner, May, June 2014

May/June 2014

Happier Customers Working ‘On’ Your Business ‘Gen Y’ Workforce

EmpoweredEmployeesTeam Up ForService Excellence

EagleAutomotive

It’s more than just fixing cars

c1 cover3 5/21/14 11:04 AM Page C1

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Shop Management: Working ‘On’Your Business

Shop Profile: Eagle Automotive

Shop Profile:Convenience Auto Service

Features

22 Eagle Automotive, Littleton, CO

42 Convenience Auto Service, Ann Arbor, MI

14 Shop Management:Working ‘On’ YourBusiness

18 Shop Operations:Higher Profits, HappierCustomers

48 H.R.: Changing Workforce, Gen Y

Sponsored by

Shop Profile

®

May/June 2014

14 42

22

02-04 Contents_May-June 5/29/14 11:23 AM Page 2

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03 Federated_Car Care SO 5/29/14 11:00 AM Page 3

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Departments6 Technology: Workflow Management

30 Buying/Selling An Aftermarket Business: Financial Preparation

38 Shop Safety: Protecting Your Employees AndYour Business

Shop Owner Staff

Publisher Jim Merle330.670.1234, ext. [email protected]

Editor Mary DellaValle, ext. [email protected]

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Director of eMedia/ Brad Mitchell, ext. 277Audience Development [email protected]

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Babcox Media, Inc.3550 Embassy ParkwayAkron, OH 44333-8318

President Bill [email protected]

Vice President/ Greg CiraChief Financial Officer [email protected]

Vice President Jeff [email protected]

Controller Beth [email protected]

In Memoriam

Founder of Edward S. BabcoxBabcox Publications (1885-1970)

Chairman Tom B. Babcox (1919-1995)

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®

�2014 by Babcox Media, Inc.

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With the introduction of atablet per technician, a newtool in the tech’s toolbox hasbeen introduced and it haschanged the way techs docu-

ment inspection findings andrecord jobs they’ve completed.And, it has allowed the shopowner to measure technicianproductivity and efficiency.

The service adviser’s confi-dence to recommend the tech-nician’s findings to motoristshas also significantly increased,due to the consistency of theprocess and the ability to lookup the vehicle’s service historyand compare it with the OEMservice recommendation.

Using images and voicerecordings, the customer expe-rience could be personalized sothat emails with inspection andtest results can be reviewed atthe customer’s home or work-place, and the estimate gets authorized sooner.

These enhancements are pos-sible because of a new Internet-based IT infrastructure wherethe Shop Management Software

6 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

|Technology|

Smooth WorkflowOr River Logging?New Technology Boosts Tech Productivity; Fosters Better Team And Customer Communication

Shop owners using the electronic inspection sheet, as well as thepaperless back shop, have been going through some inflectionpoints. Getting rid of paper has allowed them to presentprofessional-looking inspection results to their customers and anunprecedented opportunity to educate on “Why now?” and “Whathappens if I don’t do it?”

by Uwe Kleinschmidt, CEO, AutoVitals

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07 ACDelco_Built SO 5/29/14 11:02 AM Page 7

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(SMS) and its database are made avail-able in the cloud so that mobile devices are updated in real time.

Workflow Management IsControlled ChaosInterestingly, even shops with the mostrefined processes still use a paper rackfor their workflow management. Exist-ing shop management solutions don’tseem to be adequate in providing afully digital solution that allows allparticipants to work effectively togeth-er, be it the service advisor, servicemanager, technicians, parts order people or the shop owner.

As we were talking to shop ownersand service managers across thecountry, we realized that we had abig opportunity to tackle the removalof the paper rack. After we investedtime to come up with the best approach, we learned that it was nota sequential process, simply moving

the vehicle from one defined work-flow status, like “Inspect,” to the nextstep “Estimate.”

Larry Moore with Larry’s Autoworksin Mountain View, CA, said it best:“Moving vehicles through the shop ismore like driving logs down a river.Sometimes, there is seemingly effort-less floating, and other times, the rivercan’t carry all the logs at once andthey get stuck.” Or, as Darleen Reesewith Christian Brothers Automotive inBrentwood, TN, put it: “At any pointin time, I want my technicians towork on a vehicle, no matter whatworkflow status the vehicle is in.”

Realizing the difficulty of managingthis complex workflow, we tackled thedaunting task of helping to control thechaos. And, we can proudly say thattestimonials from shop owners aroundthe country indicate that we are onthe right track.

While reading this, I’d like to suggestvisiting www.AutoVitals.com/ShopFlow

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to watch the video taken in one of ourpilot shops.

“Everybody has complete visibilityof what’s going on in the shop,” saidBill Connor, general manager at Craig’sCar Care in Allen, TX.

Connor and his team demonstratedjust how ShopFlow works in theirshop. No change of the existing work-flow is required, just some initial con-figuration in the ShopFlow tool. And,you can continue using your existingSMS, as we pull the data out of it inreal-time and make it available on thetechs’ tablets. There is no duplicate effort, and no confusion about what todo next.

The best way to understand howShopFlow works is as an add-on toyour SMS, which makes it really easyfor the service adviser to know whereevery vehicle is at any point in time,and how far along each technician ison each job. Plus, they have all thedata at their fingertips: jobs complet-

ed, time budget available, service history vs. OEM service recommenda-tion, inspection results, etc.

The paper rack has been replacedwith a big screen TV so everyone inthe shop can see what’s going on. Or,affordable touch screens are madeavailable to service advisers to notonly run the shop with a few taps, butalso to show the results to the customers at the counter.

The times of shouting, as well asgoing back and forth between thefront office and back shop, are a thingof the past. The tablet has become animportant tool in the technician’s tool-box and is used not only for docu-menting a job’s progress, but also forlooking up where the next job is inthe repair process. Is a log gettingstuck in the approval process riverwhile “waiting on parts?” Just checkthe status on the tablet assigned to thetechnician. In the bottom photo onpage 10, you can see how many

www.ShopOwnerMag.com May|June 2014 |Shop Owner| 9

Bill Connor, general manager at Craig’s Car Care in Allen, TX, explains inspection findingsat the counter on a one-touch screen.

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vehicles are “Idle” in “Estimate,” waiting for customer approval.

Technicians now have everything ontheir tablet. Clocking in and indicatingwhen the job is done is all just a fewtaps away. Moreover, the tablet nowseems to be the place where all thework is documented, so when payrolltime comes, everything is clear.

What’s Next? I’m excited to seeShopFlow taking hold in more andmore shops. Integration with the shopmanagement software is vital for effec-

tive networking in the shop. I’mproud to announce that our proprietary technology allows usto integrate with any SMS in themarket, and we’ve started releasing ShopFlow add-ons thatallow for saving data, like inspection results, back into theSMS database so everything canbe stored in one place!

I’ll keep you posted, so pleasestay tuned.SO

10 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

Uwe Kleinschmidt is the CEOand founder of AutoVitals inSanta Barbara, CA. The com-pany’s Web-based servicesfocus on the independentautomotive repair industry.AutoVitals’ products facilitate highly effectiveConcierge Auto Repair services, covering all aspectsof the service advisor’s interaction with prospectiveand existing customers. Highly effective and optimized websites, workflow support in the shop,as well as customer retention and social media services are just a few ingredients. He can bereached by visiting www.autovitals.com or calling1-866-949-2848.

“I’m running some good hours, and it’s all on my tablet,” says Markel Franklin, a tech atCraig’s Car Care.

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Federated Auto Parts’ dedication to buildingprofitable and successful relationships has madeit one of the automotive aftermarket’s premierprogrammed distribution groups. Federated isdevoted to providing professional technicianswith superior customer service and name brandquality parts at competitive prices along with afull array of training and business support tools.

Since Federated was established in 1985, thename has become synonymous with quality inthe field of vehicle repair with more than 8,000stores and service centers nationwide. FederatedAuto Parts stores are independently owned businesses that serve their local communitiesand are often family-owned and operated. Thesestores provide the highest quality replacementparts and accessories at competitive prices, butalso have the most knowledgeable people whocan help with whatever the problem or chal-lenge a customer may face. They also providetraining and a host of other technical and marketing support programs including FederatedCar Care, which identifies some of the best service providers in the country as being on the Federated team.

Federated Car Care is a sign of confidence forconsumers looking for a quality repair facility. Tobe eligible to be a Federated Car Care member,shops must meet strict criteria for performancelike employing ASE certified technicians thathave the proper training to tackle the toughestrepairs. Shops also receive on-going training andmarketing support along with a program thathelps them have the most up-to-date, state-of-the-art equipment.

Independently owned and operated, FederatedCar Care centers are usually managed by theowner so customers can develop a relationshipnot only with the business but also with a person who will take an interest in keeping yourcar performing at its best.

Federated Auto Parts, headquartered inStaunton, VA, is one of the largest auto partsdistribution and marketing organizations inNorth America. Federated is dedicated to supporting its customers with quality namebrand parts, programs designed to grow their businesses, and experienced counter sales peoplewho are knowledgeable in today’s evolvingautomotive technology. For more information,visit www.federatedautoparts.com.

12 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

Corporate|Spotlight|

ADVERTISEMENT

Working Together — TheFederated Way

Federated Auto Parts508 Greenville Ave.Staunton, VA 24401

(540) 885-8460 www.FederatedAutoParts.com

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Sure, I was doing some basicmeasurement, and I had someunderstanding of how my shopwas doing on a day-to-daybasis. But I didn’t know how tomeasure my employees, mean-ing I couldn’t hold them accountable. I had my customerbase completely backward,leading to constant problems. Inshort, I was the poster child fora business owner who wastrapped working in my businessinstead of working on it.

Perhaps the worst part is feel-ing trapped in the cycle. Chaosin the shop means I spend mytime putting out fires and noton improving systems; a lack ofgood processes and proceduresleads to chaos in the shop.

So what’s the way out? Howcan we break the cycle?

I’ll come at this problem fromtwo directions, but, truthfully, itcomes back to a single princi-ple: we have to focus on resultsinstead of activity.

14 |Shop Owner|May|June 2014

Shop|Management|

Working ‘On’ YourBusinessNot Just ‘In’ It

Before I dig into an article about how to work on your businessinstead of in it, I’d like to share a story with you. Once upon a time,my accountant had to prepare 102 W2s in a single year for my shop.We had so much turnover, dealt with so much chaos and wereputting out so many fires that it was impossible for me tocontemplate working “on” my business instead of “in” it.

by Terry Keller, shop owner and president, Auto Profit Masters

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Activity Or Results FromMarketing?I mentioned my customer base earlier.At the same time I was preparing 102W2s, my shop was doing 70 cars aday. My advertising was comprised ofdiscounts and fine print, meaning that Iwas attracting the lowest-quality cus-tomer possible. Those 70 cars per daywere averaging a ticket in the mid$100s. We were running ourselvesragged, trying to take care of customerswho only wanted a cheap price. Wecouldn’t care for the few great cus-tomers we did have because we wereso swamped.

I had settled for activity (a busyshop) over results (a successful shop).

If you’ve ever been in this situation(or even if you’re there now), youknow that it’s not easy to pull out ofthis kind of nosedive. Even if youswitch your marketing approach tomor-row, unless your staff can followthrough on the promises you make inyour new advertising, you’ll never keep

those new, high-quality customers. So, if it seems like I’m glossing over

the marketing side of your shop, it’sbecause working on your business is inlarge part about focusing on results in-stead of activity when it comes to

training and accountability in yourshop.

Starting The AccountabilityCyclePulling out of the nosedive called “102W2s in a year” meant two things: hiring better people, and holding themaccountable.

The former took setting aside my egoand realizing that we’d never grow if Iwas always the best at everything inthe shop.

The latter took the Auto Profit Mas-ters (APM) Accountability Cycle.

It wasn’t called that at the time, ofcourse. At the time, it was just a wayto make training stick. If you’re the onewho is constantly asking your employ-ees what they learned in a trainingclass, or reminding them of their com-mitment to fixing a number they con-trol, this APM Accountability Cycle isfor you.

It all starts with the same questionI’ve been asking: Are you focusing on

activity or results?

If you assign a train-ing class toan employee

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and hope they get something from it,they will probably listen to the class.Because the goal was to “listen to aclass,” that training might last a weekbefore things go back to life as usual.

But, what if you give them a dead-line to complete it, hold them to it,have them report what they learnedand the things they’re going to changeimmediately, and then hold them tothat promise? That’s a focus on results,and it leads to a lasting change inyour business.

It’s true whether you’re talking aboutsending them to a conference to learn

about customer service, or simplyholding them accountable for workingon Parts Gross Profit Percentage inyour morning meeting.

This is the APM AccountabilityCycle, and even though it’s nothingmore elaborate than focusing on re-sults instead of activity, it’s the differ-ence between working longer andlonger hours at your shop hopingthings get better...

...and actually fixing problems.From there, working on your busi-

ness only accelerates. From there, youcan bring more and more numbersinto focus and see them change. Fromthere, it’s not a big leap to daily meas-urement, daily accountability anddaily growth. There’s a lot to be said

about the right software and applications, but, for now, we’ll stickto getting started working “on” yourbusiness.

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Is YourParachute

Packed?Does it really matter if

you want to work in yourbusiness? What if you really

enjoy being a part of theday-to-day, turning wrench-

es or advising customers?The answer, of course, is

that you should keepdoing what you love. But I’dcaution you to keep your eyeson the finish line: what is yourexit plan?

It’s not even fully implement-ed yet, but we’ve already seenwhat the Affordable Care Acthas done to the cost of owninga business in just four years.Whether because of legislation,a family emergency or simplysailing into the sunset, workingon your business today meansyou can pull the ripcord downthe road at a moment’s notice.

After all, what’s an exit strate-gy other than working on yourbusiness each day? Systematize opera-tions; measure, manage and improveyour important numbers; move towardremote management. The only part Ihaven’t already talked about is secur-ing good legal counsel.

Ultimately, it comes down to youranswer to this question: Are the next10 years going to be easier or hard-er for you as a business owner? Iknow my answer, which is why Ichoose to focus on that exit strategytoday. It’s why I choose to work on

my business today.The good news is that getting to a

place where you can guide or directthe business without having to bephysically on-site — or rather, to aplace where you’re working on yourbusiness, whether or not you’re inyour business — is just a matter of focusing on results instead of activity.

Doing this in marketing leads tobetter customers; doing this with em-ployees leads to more effective train-ing; and doing this with your numbersmeans security for your business bothnow and in the future when you’re

ready to hit theeject button. SO

www.ShopOwnerMag.com May|June 2014 |Shop Owner|17

Terry Keller is a shop owner,service writer and AMI- Approved trainer for auto repair shops. He is also thePresident of Auto Profit Mas-ters and creator of the RPMToolKit™, which integrates with shop POS software tohelp owners identify problems in their shop and getone-click training solutions.Reach him at [email protected] or(303) 795-5838.

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Yet, thousands of shop ownersare having sleepless nights trying to find ways to squeezemore money out of their partsand labor sales.

While I was still operatingauto repair shops, I was intrigued by the factthat while my cus-tomers had little,if any, interestin the partsand laborthey werebuying, theywere quite interested inthe warrantywe provided onour repairs.

In essence, whatthey wanted more thananything else was the peace ofmind in knowing they wouldhave good, dependable trans-portation, and that they would-n’t have to worry about payingagain if the repair were to fail.

It was at that time I realizedthat what I needed to sell morethan anything else was peace ofmind. I did a tremendousamount of homework on theinsurance industry, and it didn’t

take long to realize thatinsurance compa-

nies are all in thebusiness of

selling risk.The way

they win isby factor-ing the inevitablelosses into

their premi-ums. As an

example, forevery 1,000 peo-

ple they provide life insurance to, a certain numberwill inevitably die during theinsured period, but if theychoose the right customers, andcharge the right amount, they’llhave plenty of money to cover

18 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

Shop|Operations|

The Best KeptSecretsTo Higher Profits And Happier Customers

In order to build a successful auto repair business, most shopowners feel they need to sell more parts and more labor. Althoughboth of those items are a part of your business model, one thing iscertain: your customers don’t look forward to buying either of thetwo, at any price.

by Bob Cooper, president, Elite Worldwide, Inc.

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In essence, what customers wanted morethan anything else was the peace of mind

in knowing they would have good, dependable transportation, and that they

wouldn’t have to worry about payingagain if the repair were to fail.

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those few expected deaths.Next, I evaluated the probabilities of

different types of part failures, and thekind of customers I wanted in myshop. I quickly discovered I couldtake the repairs that had the lowestprobability of failing within five years,price them out as optional services,and completely change the way I wasoperating my business.

First of all, most of our failureswould typically occur within 30 days,so regardless of whether I offered alonger warranty or not, I would becovering that repair. I also discoveredthat if the repair failed shortly outsideof our standard warranty, we wouldcover the cost for the purpose of cus-tomer satisfaction. With this under-standing, it was obvious to me thatthe only additional risk I would betaking would be for any failures thatoccurred beyond the term of our stan-dard warranty, yet within the time out-lined in our extended warranty. In mycase, on our targeted repairs we of-fered lifetime warranties that werenon-transferable.

Now here is the best part: I discov-ered that no matter how much some-one loves their vehicle at the time ofrepair, odds are that they’ll no longerown the car three years later due tolifestyle changes, tempting car saleads, etc. So my exposure (risk) wasmore limited than you’d imagine.

Now let’s talk about profit andhappy customers. Imagine if you wereto offer your customer a standardmaster cylinder for $XXX (with a one-year warranty), and at the same timeyou offered them the option of a pre-mium master cylinder (with a five-yearwarranty) for a small additionalamount. If they elect to go with thepart that carries the longer warranty,

then all of those added dollars fallright to the bottom line.

When done in the right way, theadded profits will dwarf the few addi-tional repairs you’ll have to perform. Ifyou do the math, not only will you beamazed at how profitable this can be,but, as icing on the cake, the cus-tomers who choose to invest in theservices that carry the longer war-ranties will be thrilled with the peaceof mind you’re providing them.

Now if this isn’t all reason enough,consider that Harvard Review report-ed on a study of what occurs whenpeople are provided with options in asales environment. They discoveredthat when test groups were offeredone DVD player (Brand A), only 10%would buy. When they added a sec-ond player to choose from, 32% pur-chased Brand A, and 34% purchasedBrand B. The lesson? People lovechoices, so offering them the optionof a repair with a longer warranty isone that many of your customers willlove, and it will put more money onyour bottom line at the same time.

Note: Many states view offering dif-ferent warranties as offering insurance,which requires a license. By providingdifferent parts orservices in your options, you’ll begood to go. SO

www.ShopOwnerMag.com May|June 2014 |Shop Owner|21

Since 1990, Bob Cooper hasbeen the president of EliteWorldwide Inc.,www.EliteWorldwideStore.com,an ethics-based companythat helps both struggling and successful shop ownerstake their businesses to new levels through one-on-one coaching from the industry’s top experts. Thecompany also offers shop owner sales, marketing, andmanagement seminars, along with service advisortraining. You can contact Bob at [email protected], or at 800-204-3548.

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“I believe leadership is critical tobeing and remaining successful inbusiness. At the level most shopsare running, you have to hire peopleto help the business succeed, andleadership is going to empower employees to perform their job withminimal input from the owner.”–Brian Bates, Owner

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When Brian Bates opened Eagle Automotive in Littleton, CO, 10 yearsago, he knew he wanted to build not only a successful business, butalso a rewarding environment where employees wanted to excel. Ifopening a second location in 2012 is any indication, Bates is on tosomething, and that something is teamwork.

“Honestly, I have my job as theowner but the employees worka heck of a lot harder than I do(most days)!” Bates points out.“The business would be noth-ing without them.”

That’s high praise from anowner who is an ASE/Honda-certified Master Technician inhis own right, coming from adealership background beforeopening his first location in2004. So, it’s no surprise thatBates values education andmakes it a priority for Eagle Automotive’s seven certifiedtechs, five of whom are MasterTechnicians with the other twoworking toward that designation.

“We require that all of ourtechnicians attend 40 hours oftraining each year at any of thetraining opportunities that Imake available to them,” Batessays of the importance of con-tinuing education. “We sendour technicians to NAPA Autotech training, WORLDPAC

WTI training and CARQUESTCTI training.

“We’ve also started doingcooperative training with othershops in our NAPA BusinessDevelopment Group where wehave our technicians teacheach other certain skills in aninformal shop setting afterwork.”

Employee Retention &RecruitmentIn addition to numerous train-ing opportunities, Bates says offering competitive pay andbenefits helps keep the quali-fied employees the businesshas, and it also positively impacts the working environ-ment at both of his shops.

“I’m finding that it’s becom-ing very difficult to find techni-cians, so I have become highlyfocused on retaining and attracting good people to staffour company,” Bates explains.“We also maintain an environ-

Shop|Profile|

Eagle AutomotiveTeamwork And Service Excellence Combine For Business Success

www.ShopOwnerMag.com May|June 2014 |Shop Owner|23

by Debbie Briggs, contributing writer

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ment that is friendlyand team-based. Iwant to make surethat all of our em-ployees have a funand rewarding envi-ronment in whichthey are able to besuccessful. Pay isimportant, but theenvironment is whatretains the employ-ees.”

When it’s neces-sary to fill a vacan-cy, Bates is ready, ashe’s “constantly recruiting.” And thatconsistent networking pays off.

“The best results I’ve found comefrom constantly talking to peopleabout the opportunities at our compa-ny and staying in touch with peoplein the industry,” Bates says. “I canusually call someone I know and finda technician who is looking for an opportunity that we have available.”

Shop Affiliation &AppearanceBates says making the decision to co-brand Eagle Automotive with NAPAhas paid off for the shop — he’s always believed that partnering with anationally recognized company canbe a huge benefit for a small business.

“NAPA provides an excellent oppor-tunity to use its branding at a highlevel,” Bates explains. “The brand’sPROimage program helps with the design and implementation of thestandard appearance of a NAPA Auto-care facility. NAPA will actually reim-burse some of the cost of enhancingthe appearance of your shop.”

And Bates knows that shop appear-ance is critical to the success of an in-dependent repair shop.

“It speaks volumes about the kindof business you run,” he says. “If it’srun-down, then customers make assumptions about the type of workthat you produce. On the other hand,if it’s clean and inviting, they assume

24 |Shop Owner|May|June 2014

Danny Arguello

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your team is producing a higher quali-ty product, and you attract a higherquality customer as a result. We con-stantly clean and improve our build-

ings to retain our image asthe top shop in our market.”

Shop Productivity &ProfitabilityThe techs at Eagle Automo-tive rely on invaluable infor-mation from both Identifixand iATN to repair vehicleswith efficiency as well asprecision, both of which improve shop productivity.

“These online tools havebeen instrumental in helpingus diagnose vehicles morequickly,” Bates says, whoadds he also “makes surethat technicians maintainsolid diagnostic processeswhen using these sites so that

we don’t assume the diagnosis. Wedon’t want to run the risk of a misdi-agnosis due to cutting corners.”

Bates says joining the Bottom LineImpact Group and working with DanGilley, John Wafler and others in thecompany also positively impactedshop processes and, just like thename suggests, the business’s bottomline.

“The Bottom Line Impact Group hasbrought our shops to a level of prof-itability that we would have neverachieved without their help,” he says.

In addition to impact group coach-ing, use of an LPM electronic “flagsheet” developed by David Justice hasalso helped boost productivity at thetwo shop locations. The sheet pro-vides a way for technicians to com-municate where problems are arisingin the vehicle repair process: Are theyconsistently waiting for parts? Waitingfor authorization?

“We take that information, and we

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Rhondi Bates

Dave Slawson, Lynn Rice

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identify which areas are working efficiently and which areas need at-tention,” Bates explains. “Then wefocus on the improvement of the areasthat need it and maintain the process-es that are working well.”

Shop Marketing & WebPresence While he’s found that there’s no

“silver bullet” to marketing, Batessays he does rely on direct mail and Internet advertising to bring in newcustomers and communicate withrepeat patrons. Making sure that hisservice staff is up to date on market-ing efforts is also critical.

“I also dedicate a portion of ourmarketing efforts to training ourservice advisers so that they under-stand how the marketing plan works

28 |Shop Owner|May|June 2014

“When the right team is assembled and the business isworking well, customers will get what they are lookingfor, which will result in a business that thrives!”

Adam Bates Daniel Leet Shane Coberly

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and how their actions fit into theplan,” Bates continues. “This maxi-mizes efforts and keeps our customerhappy, which means higher retentionand greater word-of-mouth referrals.As a result, our car count consists ofthe base number of vehicles thatcome to the shop through loyalty, andthen the attraction of other vehiclesthrough marketing efforts.”

Bates says the shop’s online pres-ence is becoming equally importantin today’s digital landscape, as cus-tomers consistently turn to a compa-

ny’s website to learn more and decide if they want to do businessthere.

“The website is a constantlyevolving item that requires constant attention and improvement,” hesays. “We recently refreshed ourwebsite and implemented some improvements for search engine optimization and customer conven-ience, but I expect we will be remodeling the site every couple ofyears from now on.

“Your website is critical,” he con-tinues. “Customers will use the web

to learn about your company, its reputation, and will decide where youstand amongst competitors by howwell you have developed your site.”

Shop Leadership &EmpowermentAt the end of the day, Bates saysmany factors impact the success orfailure of an independent repair shop,but first and foremost is leadership.

“I believe leadership is critical tobeing and remaining successful in busi-ness,” Bates says. “At the level mostshops are running, you have to hirepeople to help the business succeed,and leadership is going to empoweremployees to perform their job withminimal input from the owner.”

Bates says it’s his job to facilitate anenvironment that enables people to besuccessful in reaching both their career and personal goals.

“We need to provide the support forsuccess and maintain the administra-tion of the business in the areas of mar-keting, vendor relations, company vi-sion, accounting, financing and human resources,” he concludes. “When theright team is assembled and the busi-ness is working well, customers willget what they are looking for, whichwill result in a business that thrives!”

With two shop locations and count-ing — both being run by top-notchteams — Eagle Automotive is sure toprovide quality repairs to the residentsof Littleton, CO, for years to come. SO

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John Gibbens Carlie Hampton Patrick Ryan

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30 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

Your tire or auto service business has provided for your livelihood. Ithas created jobs, sales, profits, equity and marketplace visibility. Andnow you’re ready to move on. Maybe you’re seeking an exit right

away. Maybe you’re planning for the future.Either way, and regardless of the phase you may be inregarding the sale of your shop, if you have questions

about how to proceed, you’re not alone. I regularlyaddress those questions in my ongoing series of articles in Shop Owner.

For those who have moved through the manystages of a business sale, few things in businessare more frustrating than the collapse of a sale, especially when the deal is tantalizingly closeto completion.

So many hours of often-tiresome work —the paperwork, responding to timewasters,showing people around the premises —proves to be in vain.

But at least you found a serious buyer, albeit they ultimately withdrew interest.Many businesses, more than many realize,

languish onthe market

for months oryears without finding a

remotely credible purchaser.

Preventive Measures ForA Shop Owner To TakeTo Avoid The Risks Of A Deal Falling Apart

A business sale requires the full attention and cooperation of theseller. Take your vacation before putting the business on the market.Then be prepared to dig in, be available and be actively involved inthe stages of the selling process. Once it’s sold, then it’s time for thattrip of a lifetime.

Buying & Selling|An Aftermarket Business by Art Blumenthal, MBA, CBI

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“Time killsall deals.”

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Why Deals Break DownNot all deals break down for the samereason, so, unfortunately, even if youlearn from one deal failure, it may be another reason that causes the nextbuyer to withdraw before the finishline. Knowing the top risks for dealsbreaking down allows an experiencedbusiness broker to implement the pre-ventive measures in preparing themarketing materials, anticipating theissues that may surface during duediligence, and recommending solu-tions to rectify the issues up front.

Of course, deals can break down forreasons beyond the seller’s control. Thebuyer may withdraw after finding amore suitable business elsewhere ordeciding not to buy a business at all.Occasionally, the buyer gets talked outof it by a spouse, accountant or lawyer.

But you can reduce the chances ofa sale collapsing. Just as your busi-ness has thrived because you’ve con-vinced your best customers that pre-ventive maintenance is the key toavoiding costly repairs, there are nowpreventive measures you can take toavoid the top five typical risks tosales being abandoned.

Keeping a deal on track is a key element of my services as a businessbroker and one which requires coop-eration by the seller.

Risk 1: Time kills all deals.Having the paperwork in order is akey to the ultimate close. In anticipa-tion of that requirement, I ensure thatall my selling clients provide financialstatements, tax returns, leases, keycontracts or franchise agreements andany available environmental reportsup front. Sellers need to keep theirQuickbooks® or other bookkeepingsoftware up-to-date and be prepared

to provide monthly or at least quarter-ly sales reports and financial state-ments. For example, it’s a bank/SBArequirement that financial statementsbe no older than 90 days at the timeof application and at closing. Becausethis may be the first time you’ve eversold a business, you cannot be expected to anticipate all the docu-mentation that will be needed.

In addition, a potential buyer…evena highly qualified one…may be on adifferent schedule than the seller. Although the seller may want a speedyprocess toward the ultimate close, thebuyer and his broker or attorney or ac-countant may want to take their timeat a more leisurely pace. Accountantsand attorneys are oftentimes over-loaded with work from other clients orcourt dates and it becomes necessaryfor the broker to play the role of thesqueaky wheel in keeping the salesprocess on track and on schedule.Kids often say, “If you snooze, youlose.” Well, the grown up version ofthat mantra is “Time kills all deals.”

Preventive measures: Don’t take itpersonally.

When a lifelong business is beingsold to a new owner, feelings can gethurt and that’s a good reason to havea business broker: to assist in themanagement of feelings and emo-tions. It’s not uncommon during thesales process for a buyer to discoverunforeseen expenses involved in thetransaction and suddenly the buyer iswondering if there will be enoughcash available for a down payment.

“Creative” buyers may start lookingfor negatives about the business, per-haps deferred repairs and maintenancein the building and equipment ordusty old inventory, as a means of

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negotiating a credit to offset theirdown payment shortfall. Don’t take itpersonally if a buyer is suddenly criti-cizing aspects of your business andseeking a financial accommodation.Both parties are nervous of each otherand don’t want to give away too muchwhen they’re negotiating. To avoid therisk of an emotional blowup betweenan offended seller and a stressed outbuyer that kills the deal, it’s best forthe broker to exert a calm demeanorand resolve the disagreement.

Buyers are also seeking a smoothtransition of ownership, entailingpost-closing training and consultationand the seller’s assistance in encour-aging the employees to support thenew leader. Buyers may withdrawfrom the deal if they feel that emo-tional disagreements during the salesprocess will result in a lack of sup-port from the seller during the criticaltransition phase.

Risk 2: The seller is inflexible.Rigidity by the seller, in perhaps refus-ing to consider partial seller financing,or to assist with the transition process,or to negotiate the asking price, canbe a major factor in scaring away anotherwise qualified buyer.

If a buyer feels like he is the onlyparty making sacrifices, then prideand frustration may drive him away.

Preventive measures: Be preparedto make concessions.

Give yourself a better chance of realizing the highest possible askingprice by being flexible with the dealstructure. For example, if the bank isrequiring a high down payment fromthe buyer, you could accept a smallportion of the asking price in install-ments. If the buyer is nervous about

their shortage of prior automotive experience, you could offer additionaltraining and consultancy beyond thesale to ease any misgivings the buyerhas about your business.

In cases where you own the proper-ty, a short-term rent concession mayserve a long-term benefit in makingsure the buyer is successful and finan-cially able to pay you rent for the duration of the lease. The bigger theperceived gamble, the less a buyerwill pay — and an acquisition willnaturally seem safer if the outgoingowner offers his support post-sale.

Risk 3: Due diligence uncovers undeclared issues.As the largest and most complex dealmany entrepreneurs will ever under-take, the sale of a business requiresmutual trust to succeed. Should the duediligence process, where the buyer examines the premises, books, andcontracts and so on, reveal any discrep-ancies in your account of the business,then it can fatally undermine the deal.

For example, an inspection of thepremises could reveal deferred roofmaintenance or environmental issues.Researching Internet customer reviewsof your business could invalidate claimsof high consumer satisfaction levels.

“What else is he hiding?” manybuyers will think. With their financialsecurity potentially at stake, few buy-ers will negotiate with someone whohas flagrantly betrayed their trust.

Preventive measures: Be honest.It’s not just outright lying that under-

mines trust; stretching the truth or declining to mention inconvenientfacts can wreck a deal as well. Nobuyer will blame you for highlightingyour business’s strengths and down-

34 |Shop Owner|May|June 2014

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playing your weaknesses — just don’thide anything.

Bold, unsubstantiated claims aboutthe potential for boosting revenue orexpanding the facility are of no valueto a buyer, especially if there has beena downward trend in sales over thepast few years.

Risk 4: The buyer is a “tire kicker.”“Tire kickers” are the bane of the busi-ness seller. Sometimes it’s a competi-tor with an ulterior motive parading asa genuine buyer; more often than notit’s a window shopper with neither thefinancial means nor courage to makea purchase.

Either way, some ostensibly interest-ed parties will never actually buy yourbusiness, regardless of its merits or

your cooperation. They will waste yourtime, distracting you from more gen-uine buyers and potentially forcing youto accept a lower price down the road.

Preventive measures: Qualify thebuyer as soon as reasonable.

So how quickly can you identify atire kicker to prevent your time frombeing wasted?

If you’re on your own in the task ofselling your business, you may verywell not be able to make that call.Just as you have developed the skillsfor “reading” your customers, an ex-perienced business broker becomesadept at detecting a tire kicker afterjust one or two conversations. A goodbroker will ask buyer prospects a se-ries of questions to gain insight intotheir history of investigating businesses

and their motivations. Ifthey’re not a seriousbuyer, why risk the disclo-sure of your confidentialfinancial information andtax returns, and whywaste precious time givingevening and Sunday toursof the facilities? Why sub-ject yourself to the emo-tional roller coaster ride ofbeing excited to have abuyer prospect, only to belet down if they go darkafter a few weeks?

Part of the buyer’s quali-fications, of course, istheir capacity to financethe business. One of thefirst things I work out iswhether a buyer has thenecessary down paymentto finance the business, agood credit score and nohistory of a bankruptcy.

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Whenever possible, I get the business“pre-qualified” by a major nationalbank and engage them early with abuyer to make sure they will qualifyfor financing.

Risk 5: Lease dispute with landlord.A landlord can kill a deal. If you leasethe real estate the business operatesfrom and you have a written lease,you will, almost without exception,need the permission of the landlord totransfer the lease.

Preventive measures: Examine leaseterms and extend if necessary.

If your lease is close to expiring,you definitely want to speak to thelandlord as soon as possible, as youneed to know their intentions. Thelandlord may have decided not torenew your lease, which will almostcertainly damage the value of yourbusiness and force changes to yourselling plans. Review the date of ex-piry, whether the lease includes anyoptions to renew, as well as the terms.Can you, as the lessee, assign or sub-

lease, and, if so, will you be releasedfrom further liability?

Most banks will require that thebuyer have a lease or options that extend through the loan term, typically10 years. Most sellers do not want tomake long-term lease commitments ifthey are selling the business, but gettingthe landlord to provide an additional“option” term should not increase yourexposure if it’s properly drafted.

Many sellers tell me that they don’twant to go to the landlord until theyhave a deal with a buyer in hand. I’mnot necessarily advocating that a sellerimmediately tip off a landlord thatthey’re selling their business, but thereare many reasons for a businessowner wanting to secure an additionallease option, such as a refinancing ofthe business or making a large invest-ment in equipment.

If you wait until you have a buyerto talk to the landlord, you may findthem less willing to favorably negoti-ate the option terms. The landlord willknow you are time constrained be-cause the buyer needs the extensionfor their bank and may not be veryflexible, creating an unfavorable im-pression on the buyer. Or the landlordjust drags their feet,and, as we know,“Time kills alldeals.” SO

36 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

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.

If you lease the real estate the business operates from and youhave a written lease,you will, almost without exception, need thepermission of the landlord to transferthe lease.

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These transmissions could bepretty difficult to disassemblewith all the snow and salt exposure they got during theBuffalo winters. You can justimagine the type of persuasionthat was required to get themapart. Hammers, acetylenetorches and the occasional broken bolt were the norm.

On one particular teardown,I was using a large sledgeham-mer and a hardened pin to

drive outone

of the bearing shafts. Ofcourse, I wasn’t using ear pro-tection or safety glasses; heck, Iwas 20 years old and at thatage we all think we are bullet-proof and have the notion thatsafety gear is not cool.

THE VALUE OF EXPERIENCEUnaware I was being observedby one of the owners, Bill cameup to me and inquired as towhat I was doing. I shared withhim how I broke down thetransmission, along with what I

planned to do next to get itready for reassembly. Hewas quite interested in how

I did it, but he waited for theright time to share a

personal story.Bill asked me if

I knew that hewas blind in one

eye. I wasn’t awareand asked how it hap-

pened. He said he was workingat the salvage yard when hewas about my age, and was

38 |Shop Owner|May|June 2014

|Shop Safety|

Workplace SafetyProtects Your Employees And Your Business

It was a misty, cold and dreary fall afternoon in 1980 in Western NewYork; pretty typical for that time of year just ahead of the snow forwhich the region is known. It was early on in my automotive careerand I was working at a 4x4 and Jeep salvage yard, rebuilding themanual transmissions that Rebel, our yardman, would remove fromsalvaged Jeeps.

by Vic Tarasik, owner, Vic’s Precision Automotive

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trying to get something apart using ahammer and pin just like I was.

Bill said at one point he struck thehammer and felt a sting just under hiseye and didn’t think much of it untilhe felt something warm on his chest.After he felt it and looked at his hand,he realized it was blood and that stingwas from a sliver of the hardened pinthat punctured his eye. He said thedoctors couldn’t save the eye and hewished he had used safety glasses,along with a better procedure thanusing a hardened pin for a drift.

Bill’s story impacted my approachto safety. It made me realize we haveonly two eyes and 10 fingers, theloss of which can be devastating, butprevention of such accidents takes

only moments.

WHY SAFETY SHOULD MATTER TO YOU?It shows your heart. You care aboutyour employees and what you do toensure their safety demonstrates this tothem. It showed how much Bill caredwhen he took the time to counsel meand share his story on such a tragicloss. He truly cared about me and mywell-being, rather than any liability thecompany might have if I got hurt. Hisheart was revealed to me on that cold,winter day in the shop. Can your employees say the same about you?

Every day we focus on sales, AROand bottom line profits. Does any of

www.ShopOwnerMag.com May|June 2014 |Shop Owner|39

Every day we focus on sales,

ARO and bottom line profits.

Does any of this really matter if

we don’t have a safe workplace

that ensures the security of our

employees?

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this really matter if we don’t have asafe workplace that ensures the security of our employees?

AN EXCELLENT EXAMPLEExxonMobil is the largest oil companyin the world and its safety credo is“Nobody Gets Hurt.” Safety briefingsare the norm, whether you’re a con-tractor, an employee or a spouse onsite for a seminar. Our shop has par-ticipated with AAA at several Car CareInspection events, and prior to set up,an ExxonMobil employee always gave

us a safety briefing. Safety is at thecore of the identity of the ExxonMobilemployee, and the company’s reputa-tion for safety is reflected in these results: The number of lost-time inci-dents for employees are less than 1incident per 400,000 work hours, according to ExxonMobil.

THE UNEXPECTED VISITORWe know there are federal and stateagencies put in place to make surethat industry, as a whole, remainssafe. One agency we are all aware of

40 |Shop Owner|May|June 2014

OSHA does offer a voluntary inspection program,

which exempts you from fines as long as you con-

tact them, schedule an appointment and agree to

fix the defects they find. This allows your shop to

be proactive, rather than reactive, to items that

are safety threats that you look past every day.

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is OSHA, but most in our industry arenot aware that OSHA has the powerto visit your facility at any time to inspect it and see if the workplace issafe. During the inspection, theOSHA representative has theright to cite each safetyviolation. Each citationcan carry a fine up to$7,000, and willfulviolationscan be upto $70,000.So, an unexpect-ed visitcan havemassiverepercussions.

THE GOODNEWSOSHA does offer avoluntary inspection program, which exemptsyou from fines as long as youcontact them, schedule an appoint-ment and agree to fix the defects theyfind. This allows your shop to beproactive, rather than reactive, toitems that are safety threats that youlook past every day just because youhave become accustomed to them. It’sa lot like what we try to teach to ourcustomer — preventive maintenanceis much cheaper than the repair. Howoften have we heard a noise or feltsomething on a test-drive that our cus-tomer hasn’t noticed because theproblem had been around for such along time?

OSHA’s On-Site Consultation pro-gram is put in place for employerswho want to ensure and improve thewellbeing of their employees. In

2013, OSHA’s On-site ConsultationProgram conducted approximately30,000 visits to small business work-sites, covering more than 1.5 million

workers acrossthe nation.

Staying

ahead of the curve as it relates to safety benefits you, the wellbeing ofyour employees and the bottom line.

CONCLUSIONWhile the subject of safety is not nearly as sexy as a new marketingprogram or the latest on SEO, it goesa long way toward ensuring your employees and company remain avital component of your community,and you remain a profitable entity. SO

To contact OSHA to set up a freeconsultation, go tohttps://www.osha.gov/dcsp/smallbusi-ness/consult.html

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“We strive to fix cars right the firsttime, and on time. We undercommitand overdeliver for our customers.”- Lou Lippert (left) and Mike Maloney, Owners

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All too often, going into business together can strain a friendship,but this hasn’t been the case for Lou Lippert and Mike Maloney. Ifanything, opening Convenience Auto Service in March 2004 andworking to operate a successful independent repair shop has onlysolidified the alliance — and resulted in the two friends celebratingtheir 10th anniversary in business.

How do they make it work?Lou, who holds five MasterTechnician certifications, han-dles the day-to-day shop opera-tions, while Mike runs the finance and marketing side ofthe business, including servingas webmaster.

“Mike and I usually approachproblems very differently, andwhile that sometimes can betime-consuming, talkingthrough decisions usually results in a better outcome,”Lou explains. “The fact that wehighly respect each other, andstrive to get along, propels us.”

Tech-Savvy CustomerBaseLocated in the college town ofAnn Arbor, MI, Convenience attracts a tech-savvy customerbase, one where iPhone use isa given. Mike says staying cur-rent with technology is a must.

“Being in a college town, themajority of our customers have

smartphones, and they use thewebsite not only to find us, butto communicate,” he says. “Wehave a very unique website thatI custom-designed for Convenience Auto. The designis more inviting and informativethan competitor websites.”

The website features a responsive design that allowsfor easier use by customers onmobile devices. They canquickly find out more informa-tion about after-hours drop offs,or call the shop with the clickof a button.

Also unique is the shop’s Preventative Maintenance Blog,which offers timely, helpful information customers can real-ly use. Consistent posting alsohelps the shop be more readilyfound in search results, assearch engines such as Googlefavor well-written, regularlyposted website content.

Lou says Mike’s graduate degree in business administra-tion with a minor in marketing

Shop|Profile|

Convenience AutoRaising The Bar And Committing To ExcellenceHelps Shop Remain Successful

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by Debbie Briggs, contributing writer

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gives them an edge when marketingto tech savvy customers.

“We believe that we are muchmore savvy in the marketing areathan the average independent shop,”he says.

Impeccable ServiceMarketing details aside, Lou is alsoquick to add that there is no substitutefor having the best product.

“We constantly evaluate the compe-tition and determine how to providethe best service possible,” he says.“We don’t do much conventional advertising. Word-of-mouth always hasa bigger impact, and it’s cheaper, too.”

Lou adds that his philosophy of“product is king” helps the shop al-ways provide the best possible repairs

for its customers — something they appreciate perhaps more than discounts or promotional offers.

“We strive to fix cars right the firsttime, and on time,” he says. “We undercommit and overdeliver for ourcustomers. They respond more posi-tively to this strategy than any dis-counts or advertising program.”

Customers also appreciate theshop’s recent building improvements,including an enlarged write-up win-dow, as well as a remodeled welcomearea, customer bathroom and cus-tomer lounge. In addition, the heatingand air conditioning system under-went a significant upgrade.

“We’ve been in business for 10years now, and our shop was startingto look a little tired,” Lou explains.“We’ve embarked on a significant

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program of building improvementsthis year to make our shop more cus-tomer friendly. Our initial feedbackhas been very positive, especially re-garding the areas that customers comein direct contact with.”

Top-Notch TrainingAbout 40 to 50 percent of those customers are driving Subarus, whichjust so happens to be Lou’s specialty.He spent 22 years at a Subaru dealer-ship, honing his craft before openingConvenience Auto and bringingmany of his former customers withhim. With the shop previously cater-ing to German cars, those models

still make up about 25 percent of theshop’s volume today.

“Our shop prides itself on being aone-stop shop,” Lou says. “We offereverything from preventive mainte-nance to comprehensive engine repairs.”

The shop’s three ASE-certified Mas-ter Technicians and one trainee per-form that service, and Lou says heand Mike make sure they stay up-to-date on emerging trends in the fieldby encouraging — and paying for —their employees to attend trainingclasses.

Lou says they also reimburse theirtechs for the costs associated with certification. Not surprisingly, theshop’s retention rate is extremely high.

“For most people, compensation isonly one part of their satisfaction onthe job,” Lou says. “We believe in fostering a positive work environmentand encouraging the good in everyemployee.

“We constantly are looking to catchemployees ‘doing something right,’and we recognize those actions that

46 |Shop Owner|May|June 2014

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improve customer satisfaction,” hecontinues. “After all, repeat cus-tomers are the key to our success.”

When they do need to fill a va-cancy, Lou says they rely on Mike’sexperience with executive recruitingfrom his corporate days: You would-n’t run an ad fora top-notch CEOcandidate, andyou aren’t likelyto find the idealtechnician thatway, either.

“Referrals forthose types ofjobs typicallycome from yournetwork — respected pro-fessionals andfolks you knowin the industry,” Lou says. “Frankly,I’m surprised that more shop ownersdon’t use the same philosophy in re-cruiting non-managerial employees.Referrals from friends, neighbors andothers in your professional networkwill almost always give you more accurate leads than a blind ad.”

Staying CompetitiveIn addition to a well-designed website,quality service and knowledgeable em-ployees, Lou says he and Mike areconstantly looking at processes andhow to improve them to provide thebest end result for their customers. Forexample, in order to improve waittimes, they recently upgraded theshop’s computers and Internet speed —making a significant positive impact.

Lou says they also recently joined a20 Group through RLO Training,which has helped them see how other

top-notch ownersrun their busi-nesses.

“We’re alwayslooking for newideas and ways tobenchmark our-selves,” Lou says.“It’s a competitiveworld out here.

Shop owners need to establish solidprocesses, create a solid team andcontrol costs. Then, minimize the vari-ability in those processes, and onceyou’ve established consistency, startraising the bar.”

In today’s tech-savvy world, customers are smart, Lou says, andthey buy from the people they like.

“They recognize good service, sovalue and service need to be the cen-terpiece of your business plan,” heconcludes. “Outperforming your com-petition in these areas will have moreto do with your success than anythingelse. It takes a relentless commitmentto figure out what your customerswant, and then give them more of itthan your competitors.”

With that commitment to excel-lence, Lou and Mike are sure to keepdelivering quality service to their AnnArbor customer base now and formany years to come. SO

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We are in a unique time because there are four gener-ations in the workforce, and they all have different

ideas of what work and the workplace shouldbe, which can be tough to manage for any

business owner or manager. Up until recently, the Baby Boomers (born

between 1946 and 1964) have pri-marily dominated the workforce

and created the “standard” as towhat’s expected from their employers, from themselves asemployees and their co-workers.However, it’s estimated that as

early as next year there will be moreMillennials in the workplace than Baby

Boomers, which completely changes thedynamic of the workforce to this point, which

isn’t a bad thing. Millennials seem to get a badrap from the other generations, but just like the

generations before them, they are products of the worldin which they grew up and how they were raised, which

transfers into their work lives. It just so happens that technology has boomed and

become more sophisticated during the years that this genera-tion has been around, which has shaped them and what they

Human|Resources|

The Ever-ChangingWorkforceUnderstanding ‘Gen Y’ Expectations Can Boost YourCompany’s Success, As Well As Theirs

If you ask anyone in the workforce, particularly managers orbusiness owners, what their thoughts are about working withMillennials (also known as Gen Y, and whose birth years range from1980 to 2000), I can guarantee that they’ll have something to say. Itseems to be a hot topic of discussion these days as Millennials arehaving a big impact on the workplace, how companies do businessand how they attract and retain employees.

by Deanna Arnold, president, Employers Advantage LLC

48 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

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know as their “norm.” Millennialsgrew up with advanced technology, mobile technology, real-time data andsocial networking, so that’s what theyknow and therefore expect to seefrom their employer.

Here’s an overview of some ofthose expectations.

Flexibility. Whether it’s flexibilitywith their schedule, or being able tomake the choices that best fit theirneeds, Millennials know there ismore than one way to get thingsdone. The flexibility to work in the office or remotely from home issomething that’s becoming more stan-dard. There is an expectation to beable to work from home because thetechnology exists to allow it. Andwhile this won’t work in your placeof business, keep these expectationsin mind as you think of other “flexible” options you can offer.

Technology and innovation.Whether it’s being able to work remotely, being mobile with apps orhaving self-service capabilities, Millen-nials look for companies that have thetechnology to support the efficient operation of the business, as well as innovative ideas and the “ahead of thecurve” mentality on up and comingtechnology.

Immediate and straightforward feedback. Living in a world of instantand 140-character responses in the various forms of likes, comments,retweets and favorites, immediatefeedback is essential to professionalgrowth as well as establishing a solidworking relationship. Millennials wantto learn, grow and have someoneguide them through their careers. Thisis also a good reason to eliminate annual performance reviews and incorporate real-time feedback intoyour company culture.

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Collaboration. Socialnetworking, constantadult guidance and play-ing on a sports team thatdoesn’t identify winnersand losers transfers the de-sire for collaboration intothe workplace. Working onteams and with mentors tobe a part of something bigis important to this genera-tion. Also, they see everyoneas a peer and an equal intheir efforts to collaborate,rather than seeing an organi-zational hierarchy. Time tobreak down some barriers.

Blend of work life and personallife. There isn’t a clear line for Millen-nials between work and personal lifebecause they are so mobile and tech-nology-driven that everything in theirlives can be managed at the sametime. They will manage their personalbusiness during what most wouldconsider standard business hours,while also knowing they are availableduring non-standard business hoursfor work purposes.

Strong values and company culture. Working for a company thathas a strong culture and values thatthey believe in is important to theMillennials, and every other genera-tion for that matter. The differencewith this generation is that they usetheir network and resources to findthe companies that they want towork for, rather than finding a jobthat they want to be in.

That’s why it’s important for compa-nies to have a strong brand, be activein giving back to their communities,focus on training, treating people with

respect and doingthe right thing. Otherwise, the em-ployees will go somewhere else andtell the people in their network allabout what it was like to work some-where that didn't treat them right. Thisworkforce wants an experience withtheir career, not a job with a goldwatch after 25 years.

The bottom line is companies can’tcontinue to recruit, retain and managetheir workforce with the mindset thatwas commonplace 20 years ago.Company owners, managers and directors need to understand the pre-dispositions, preferences and expecta-tions of Millennials, and then helpthem channel those attributes intoworkplace contributions that will helpfoster its success, as well as theirs. SO

52 |Shop Owner|May|June 2014 www.ShopOwnerMag.com

Deanna Arnold, PHR, is the president andowner of Cornelius, N.C.-based EmployersAdvantage LLC, which provides practical business solutions in all aspects of human resources, including but not limited to, recruiting, benefits, employee relations, compliance, performance management, HRIS,worker’s compensation, safety, facilities/officemanagement, and budgeting. She can bereached by emailing [email protected] or calling 980-422-7953.www.employersadvantagellc.com.

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