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September/October 2013 Identifying Target Customers Online Customer Communication Customer Retention Tips Devotion To Customers, Staff and Community Fuels Success Certified Express Lube & Auto Service

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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, September/October 2013

September/October 2013

Identifying Target Customers Online Customer Communication Customer Retention Tips

Devotion To Customers,Staff and CommunityFuels Success

Certified Express Lube & Auto Service

C1 Cover SO Sept.13 10/8/13 12:40 PM Page C1

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C2 Federated Guys SO 10/8/13 12:40 PM Page C2

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01 Federated More SO 10/8/13 12:37 PM Page 1

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Online Customer Communication

Challenges Of a Family-Owned Business

Shop Profile: Certified Express Lube &Auto Service

44

Shop Profile: Integrity Automotive

Features

18 Certified ExpressLube & Auto Service,Crestwood, KY

38 Integrity Automotive, Tucson, AZ

6 Technology:-Online Customer Communication

24 Case Study:-Buying/Selling A Multi-site Auto Service Business

44 Shop Management:-Challenges of ‘Family’ In a Family-Owned Business

Sponsored by

Shop Profiles

3838

18186

®

September/October 2013

02-04 Contents SO_Sept 10/8/13 12:36 PM Page 2

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03 ACDelco Value SO 10/8/13 12:36 PM Page 3

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Departments

14 Executive Interview: Fran Labun, DENSO Products and Services Americas, Inc.

34 Customer Service: Maximizing Customer Retention

48 Sales & Marketing: Identifying Target Customers

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]

Subscription Services Maryellen Smith, ext. [email protected]

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)

4 |Shop Owner|September|October 2013 www.ShopOwnerMag.com

24

48

34

®

�2013 by Babcox Media, Inc.

02-04 Contents SO_Sept 10/8/13 12:36 PM Page 4

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05 Denso WB SO 10/8/13 12:35 PM Page 5

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The direction is clear: yourservice counter interaction withcustomers needs to be comple-mented by online interaction.Websites present interactive information and have competi-tion from social networks witheasily consumable information.According to Google, motoristslook for educational informa-tion and parts at a significantlyhigher degree than searchingfor services like “auto repair” inyour area.

Let’s explore ways of provid-

ing educational information, sothat your prospects and existingcustomers don’t get their educa-tion from “the Internet” like thelady who found the Frenchmodel in the famous State Farmcommercial. Leverage yourwebsite and social networks toengage with prospects and existing customers to provideeducation, that is coming directly from you, the expert.

Interaction At TheMoment Of NeedI bet that you not only get solic-itations from hundreds of ven-

dors for your website, SEOand Facebook services,

but

6 |Shop Owner|September|October 2013 www.ShopOwnerMag.com

|Technology|

Motorist InteractionHas Moved Online. Have You?

The numbers are mind-boggling: 134 million smartphones are usedin the U.S. alone and every quarter 8% more Americans select asmartphone. If that doesn’t surprise you, maybe the following factswill: 59% of auto service customers under the age of 35 want to becommunicated with via mobile applications and 31% of Americanmobile Internet users say that’s the primary way they access the web.

by Uwe Kleinschmidt, CEO, AutoVitals

06-10 Technology, Training Videos 10/8/13 12:35 PM Page 6

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07 Wix SO 10/8/13 12:34 PM Page 7

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also, just like your customers, you areasked to consume so much informa-tion in your inbox and on your phone,that it’s impossible to process it all. Infact, the amount of data generated onthe Internet every minute (YouTubeusers upload 48 hours of video, Face-book users share 684,478 pieces ofcontent, Instagram users share 3,600new photos, etc.) suggests that newengagement strategies are needed.

The experts at AutoVitals researchedthe clicks on videos embedded indozens of auto repair shop websitesand the results are disappointing.Videos on the homepage of websitesare clicked on between 1% and 9% ofthe time. Videos as part of blogs em-bedded in auto repair shop websitesbelow the fold (visitors have to scrolldown to watch them) are clicked onless than 0.5% of all clicks on thatpage. Why are the results so devastat-ing? The answer can be summed up intwo words: User Experience. If the information is not presented in themoment of need, it goes by unattend-ed. The visitor of the website shouldfind the answer to the reason why theycame to the website in the first place.

Educational information presentedin the moment of need can be highly

engaging and useful. But what is themoment of need and how can it bedetermined? That depends on whataudience you are trying to target:

• New prospects are looking for atrusted auto repair shop for a perceived big (expensive) repair.

• Coupon clippers are looking forthe best deal.

• Motorists who called anothershop already are looking for asecond opinion.

• Existing customers are looking fora shop’s phone number.

• Customers with the vehicle already in the shop are lookingfor answers to “Why now?” and“What happens if I don’t do it?”

• Motorists are looking for a goodprice on tire services.

• All of the above.

The good news is that auto repairshops are not e-commerce businesseslike amazon.com where no personalcontact is possible and all products arecommoditized and readily availablefor price comparison. The key is tofocus on the value a local businessprovides to the local community. Youare your own brand with these fea-

8 |Shop Owner|September|October 2013

The key is to focus on the value a local business provides to the local community.

You are your own brand with these features: Trusted, excellent customer service,personalized recommendations and vehicle-

specific information.

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tures: Trusted, excellent customer serv-ice, personalized recommendationsand vehicle-specific information.

One example in our attempt tomake it personal is what we call thetraffic booster. See the image above asan example. Ron Haugen, owner ofWestside Auto Pros, Des Moines, IA,greets his prospective customers righton the search page of Google. Espe-cially because the visitor’s decision toclick on a featured link is made with-in seconds, his business listing standsout and introduces the searching mo-torist to his business.

Attention Span MattersIn every interaction, “time” matters.Motorists’ attention span is low, asthey want to tend to their normal

lives. So, it’s crucial toprovide the informationin layman’s terms andfocus on the subjectmatter that’s importantfor them to make a de-

cision. After we didn’t find a solutionwe could recommend to our clients,our AutoVitals TV experts started pro-ducing a series of service recommen-dation videos, which meet the criteriawe just established:

• Brief (approx. 90 seconds).• Coming from the expert who

motorists trust (You!) withoutbreaking the bank. (We have de-veloped a special technology tocost effectively achieve high personalization.)

• Conveying the complexity of thetechnical subject matter so themotorist sees the importancewithout the attempt to turn thecustomer into a technician.

• Responding to “Why now?” and“What happens if I don’t do it?”

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• Providing an easy-to-understandranking for: Safetyrelevance; Costavoidance; andEnvironmental impact; and

• Creating a call to action at theoutro.

These videos canbe used at different moments of need:

• During the servicecounter interaction, on the web-site or via counter TV with closedcaptioning.

• When selling a phone estimate,using images of the problem areain conjunction with the educa-tional videos.

• When sending service reminders,links to those videos will be auto-matically inserted, if our system isconfigured for your canned jobs(and, of course, if you use cannedjobs).

• Searches on Google for educa-tional information lead to thewebsite (see image on page 9).

Combine Your Social PowerYour business is on Facebook, isn’t it?Of course it is. Have you ever thoughtabout amplifying the leverage of yourbusiness page in a cost-effective man-ner? Millions of motorists are on Facebook and have at least one friendwho comes across your businesspage, or the business page of anothershop that’s affiliated with the associa-tion to which you belong. Where indi-vidual reach might be limited, an

association’s wide presence can helpin attracting the motorist’s attention.

The Automotive Service Councils ofCalifornia (ASCCA) and AutoVitalshave just started a project on Face-book to create a page targeting mo-torists (see image above). In order tomake it really easy for the motorist tofind a shop, the location of the motorist is automatically detected andthe nearest ASCCA member shops areshown on the map, with the ability topromote the shop’s specialties andvalues. Search for ASCCA Universityon Facebook tocheck it out! SO

10 |Shop Owner|September|October 2013 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.

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11 Mahle SO 10/8/13 12:34 PM Page 11

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12 |Shop Owner|September|October 2013 www.ShopOwnerMag.com

Corporate|Spotlight|

ADVERTISEMENT

The ACDelco sign in yourshop tells your customersthey can trust you to installquality parts backed by amore than a century of auto-motive aftermarket expertise.And for you, it means retain-ing the independence you’veworked hard to achieve, yet hav-ing a trusted partner to help younavigate the potholes and speed bumps ofrunning a business in the 21st century.

Only ACDelco offers a Professional ServiceCenter Program that provides participants withGM OE expertise and engineering leadership;industry-leading technician training; creativemarketing programs such as our “Knowledge isPower” seminars; business locators and leadgeneration; innovative e-business solutions;rewards that you can re-invest, spend or share;and an image programthat lets customers knowyou take your business –and theirs – seriously.

The ACDelco sign is your keyto a portfolio of more than100,000 parts designed formost makes and models, as

well as customers’ varyingbudgets and priorities. And

because the right parts are justthe beginning of a successful

repair order, our growing lineupof ACDelco-licensed tools extends

your trust in our parts to the technicianswho install them.

Becoming an ACDelco Professional ServiceCenter Program participant is easy, affordableand transparent – the more ACDelco parts youpurchase, the more support and services youreceive, including discounts on everything fromnew cars to uniforms. More importantly, you

gain access to trainingand seminars that helpkeep you and your techni-cians on the cutting edgeof automotive service.

Isn’t it time you allowedus to earn your trust?Learn more about theACDelco ProfessionalService Center Programby calling 1-800-825-5886, prompt 0.

ACDelcowww.acdelcotechconnect.com

ACDelco Salutes Your Independenceand Values Your Trust

12 Spotlight_ACDelco 10/8/13 12:33 PM Page 12

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13 ACDelco Trust SO 10/8/13 12:33 PM Page 13

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Can you provide an exampleof how one of your leadingproducts/brands is evolving tomeet the needs of today’s shopprofessionals?

According to AutomotiveNews, DENSO is the 2ndlargest automotive supplier inthe world. With Fiscal Year

2012 annualsales of morethan $38 bil-lion, DENSOhas the stability,strength andOE-level qualitythat today’s pro-fessional in-stallers can relyon now and inthe future. Weare in it for thelong-haul!

Our Aftermar-ket businessbegan in 1982

with one product – spark plugs.Today, we have more than 20aftermarket products under theDENSO “First Time Fit” brandincluding A/C compressors,starters, oxygen sensors, alterna-tors, fuel pumps, wiper blades,oil, air and cabin air filters, ex-pansion valves, receiver/driers,condensers, ignition wires, relays, direct ignition coils, fuelinjectors, MAF sensors, radia-tors and evaporators.

“First Time Fit” means thatbecause of our OE strength andheritage, the part is guaranteedto fit right the first time, savingthe shop owner time andmoney with fewer comebacks.That also means less time forthe technician to make modifi-cations or adjustments and alsoonly having to do the job once;protecting the shop owners reputation with their customers because the customer trusts the

14 |Shop Owner|September|October 2013

Executive|Interview|

Fran LabunVice President, Sales Group, DENSO Products &Services Americas, Inc.

Fran Labun is vice president of the Sales Group for DENSO Productsand Services Americas, Inc., the Long Beach-based affiliate of Japan-based DENSO Corporation. He oversees automotive aftermarket andOES sales for the Americas; U.S., Canada, Mexico, Latin and SouthAmericas. Labun also oversees the product development and salesfor Heavy Duty OES and aftermarket channels and directs the DENSOnon-automotive product lines for robotics, heat management andhand scanners.

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shop and the parts they install.With even more aftermarket products

slated to launch in the near future, it isan exciting time for DENSO’s aftermar-ket business…and that benefits theshop owner and professional installerby providing a wide array of productchoices for their business and theircustomers.

How does a leading manufacturermaintain the strength of its high-quali-ty, branded products in an increasinglyprice-driven market?

Competition is good! It gives ourcompany a chance to shine. We thinkthat when you compare DENSO withother product choices available, weoffer an excellent value. There is aJapanese word, “Kaizen” which meanscontinuous improvement. DENSO corporate culture strongly believes in

this philosophy and looks for ways to continuously improve our product, increase efficiencies and reduce coststo provide a better value for our customers.

Discuss the “My DENSO Rewards”program and how distributors andtechs can reap the benefits.

The “My DENSO Rewards” programwas launched in July, 2013 and its purpose is to provide an incentive or “rewards” program for WDs, jobbers,shop owners, counter people and professional installers to earn awardpoints by selling the DENSO line ofcabin air filters and wiper blades. Weplan to add additional products to theprogram in the very near future. Thosewho sign up for the program will earnpoints and have a wide range of itemsto choose from based on the number

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of points theyearn. Wewant shopowners andprofessionaltechnicians tobe aware thatin addition tomore technicalcomponentssuch as A/Ccompressorsand alternators,DENSO offershigh-qualitymaintenance products such as filtersand wiper blades that they can pres-ent to their customers as a O.E. quali-ty option. To sign up, go to www.my-densorewards.com.

Discuss recent company expansionsand how they help your companybetter serve your customers.

On April 1, 2013 we announced thecompletion of our reorganization undera new name — DENSO Products andServices Americas, Inc. The establish-ment of our Aftermarket BusinessHeadquarters for the Americas in LongBeach, CA, was first announced onOctober 31, 2012 at the AutomotiveAftermarket Product Exhibition (AAPEX)show in Las Vegas.

As part of thereorganization,American Industrial Man-ufacturingServices inMurrieta, CA,a DENSOgroup compa-ny that pro-duces reman-ufacturedproducts, including

starters and alternators, and repairs common rail diesel fuel injec-tors is combined with DENSO Sales California, Inc. in Long Beach, CA.

This change enhances our aftermar-ket operations in The Americas and isaligned with the global aftermarketgrowth plans we announced last yearwhen we introduced DENSO’s After-market Business Unit in Japan.

The new organization will be responsible for engineering, procure-ment, sales, service and planning foraftermarket, heavy duty, OES and non-automotive products. DENSO hasidentified these segments for expan-sion in the Americas with the goal toprovide even more quality productsand services to our customers. SO

16 |Shop Owner|September|October 2013 www.ShopOwnerMag.com

We think that when you compareDENSO with other product choicesavailable, we offer an excellent value for the installer.

{14-16 Denso Executive Interview 10/8/13 12:32 PM Page 16

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“Being a shop ownertoday is much likebeing the ring masterat the circus. All thebehind-the-scenes workis played out when theshop doors open. Wesee our successes orfailures on a dailybasis, but it’s our job toensure the customerdoesn’t notice something that didn’tgo quite right.”

– Steve Heggie, Owner

18-23 Profile Certified Transmission 10/8/13 12:48 PM Page 18

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By all accounts, if you walked into Certified Express Lube & AutoService in Crestwood, KY, you’d probably think it was owned by a

former technician who decided to venture into shop ownership.The waiting area is inviting and features AAA-approved signage.

The shop’s four technicians have ample room to work in the shop’s13 service bays, and customer service is priority number one for

each and every repair.

All of that’s true — except howa former banker became shopowner in the matter of a fewshort weeks in 2001.

Steve Heggie says he had always dreamed of owning his(current) business, but he start-ed his career in the banking in-dustry at 18, working his wayup the ranks until he realizedhe was in a holding pattern ataround age 29.

“I realized I didn’t haveenough gray in my hair to dothe things I wanted to do in theworld of banking,” Heggie explains. “That’s when I en-tered the automotive aftermar-ket as a salesperson for aLouisville, KY-based automatictransmission parts wholesaler. Ibecame familiar with bothtransmission and automotiveshops since I worked withthem daily to help them grow

their businesses.”Fast forward to age 38, when

life circumstances — a wifeand new baby — promptedHeggie to make his dream ofbusiness ownership a reality.

“It didn't matter what thebusiness was as long as I wasthe boss,” Heggie remembers.“Since I’m a sales and market-ing kind of guy, I decided notto start a company from theground up, but to buy one thatwas already established. Betteryet, I thought why not marketto someone who is looking toretire, but wants to keep theirbusiness going — to leave alegacy?”

Heggie’s ad in the March 23,2001 edition of Louisville’sBusiness First publication metwith much interest and he re-ceived many responses, so helooked at several opportunities

Shop|Profile|

Certified Express Lubeand Auto ServiceThe Road Less Traveled: Owner TakesUnconventional Route to Shop Owner Status

www.ShopOwnerMag.com September|October 2013 |Shop Owner|19

by Debbie Briggs, contributing writer

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before finding the perfect fit.“A broker presented a transmission

shop to me that turned out to be oneof my customers who had decided tosell his business,” he says. “I met withhim several times and made severaloffers before he finally decided that Iwould take good care of his cus-tomers and keep the business going.”

Hands-On OwnershipToday, techs at the full-service shop repair just about any make andmodel, be it domestic, Asian or Euro-pean. Heggie says it’s important to include employees in the day-to-dayoperations of any business, but espe-cially an independent automotive repair shop that relies so heavily on acohesive staff to provide top-notchcustomer service.

“In my business,we all work together so no one is anisland,” he explains. “It’s not a ‘myway or the highway’ mentality. Every-one has input into the daily opera-tions, and I encourage new ideas andsuggestions.

“I’ve learned money cannot buyhappiness in an employee,” Heggie

20 |Shop Owner|September|October 2013

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continues. “Many simply want to beappreciated, and they want someoneto treat them with respect and dignity.In my shop, I try to use the two mostunderused words in the English lan-guage daily: please and thank you. Itreally makes a difference that you cansee and measure.”

Heggie says he makes staff traininga priority since he understands howimportant it is for any business to employ knowledgeable staff.

“My employees get the latest infor-mation in many ways,” he says. “Weattend training here locally through

several sources, withmany part suppliers,dealerships and chainsoffering training at ei-ther a free or reducedprice. In the nextmonth, we will be at-tending training fromAutomotive TrainingGroup (ATG), and asa member of thelocal NAPA Business DevelopmentGroup, we bringtraining in to bene-fit the group mem-bers. Online train-ing is good, butattending in aclass environment

works best for us —fewer distractions than doing some-thing at home online.”

Heggie says that while staffing levelsstay fairly steady at the shop, he doeshave the need every now and then tofill a vacant position. Who better tohelp fill it than the Certified techsthemselves?

“One way to find new talent is toask our techs who they know,” Heggie

says, explaining that “just like profes-sional athletes, techs tend to movearound.

“I’ve also found that the best andleast expensive way to find new employees is CareerBuilder,” he adds.“As a NAPA Autocare Center, I havefree CareerBuilder resume access. Itenables me to sit down after a longday and take a look at prospects on-line. If I find someone who I have aninterest in, I can then email, call ortext them. It sure beats placing an adin a newspaper!”

Fueling a Strong CustomerBaseHeggie admits that attracting and retaining customers is a full-time jobin itself, requiring him to maintain amarketing toolbox of sorts to providecustomer service reminders and solicitcustomer feedback as well.

“Although it appears to be goingthe way of the dinosaur, we still doadvertise in the phone book,” he says.“You’d be surprised how many olderpeople still go there first. I’m also abig fan of the USPS EDDM (EveryDoor Direct Mail) program. As a salesand marketing guy, when my shopneeds some stimulus, I can put to-gether a mailer, target a section oftown, and have my 8-1/2” x 11”mailer in their mailboxes in about aweek’s time.

“Not only is it affordable,” he says,“it works for us. Current customersand prospects bring in the couponsfor months! And, of course, nothing ismore effective than a satisfied cus-tomer telling someone else. Advertising and continuing to separateyour business from the competition isvital for any business.”

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A little healthy competition neverhurt either, as Heggie’s “Win Steve’sDerby & Oaks Passes Contest!” proveseach year. Heggie says he’s alwaysoverwhelmed by the number of en-tries in what’s become a signaturegiveaway for Certified.

“As a shareholder of ChurchillDowns, I receive two passes to bothThe Kentucky Derby and The Ken-tucky Oaks,” he says. “We have adrawing that generally starts in earlyMarch and runs until mid-Aprilwhere customers can earn entriesbased on services they purchasefor their vehicle. For example, abrake job may be worth 10 entries,and an oil change may be worththree entries. You would be amazedat both the number of entries andhow our customers respond to theprogram!”

Dedicated To SuccessHeggie says running a successful shopboils down to one thing: productivity.Without it, customers are usually

disappointed, but with it, they knowwhat to expect each and every timetheir vehicle is serviced.

“Our shop uses a process in whichwe approach each vehicle the sameway from start to finish,” Heggie explains. “After we receive the vehiclefrom the customer, we collect vital information from each vehicle, andput a sticker and floor mat insideeach. The vehicle is then dispatchedto a technician who does a

22 |Shop Owner|September|October 2013

“In my business, weall work together sono one is an island,” Steve explains.“It’s not a ‘my way or the highway’mentality. Everyone has input into thedaily operations, and I encourage newideas and suggestions.”

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performance inspection andthen addresses the customer’s con-cern.

“Once we’vedone this, a serv-ice estimate isforwarded to theservice writer,who then

sources any parts we may need, andcontacts the customer to receive au-thorization for the needed repairs. It’sat this time that we give an estimatedtime of completion to the customer.Our system works great, but if it’s de-viated from in any manner, it doesn’twork as well. Sticking to the basics isour key to success.”

Another important part of Heggie’ssuccess? Dedication to his craft. It’snot uncommon to receive an emailfrom Heggie at 5:30 in the morning or

for Heggie to be picking up parts onhis way to the shop each day.

“Being a shop owner today is muchlike being the ring master at the circus,” he says. “All the behind-the-scenes work is played out when theshop doors open. We see our success-es or failures on a daily basis, but it’sour job to ensure the customerdoesn’t notice something that didn’tgo quite right.

“As difficult as it is to own and operate a business,” he concludes, “Iwouldn’t trade it for anything. I lovewhat I do and I love people! But, Iwouldn’t be where I am today withoutthe support and dedication of my wifeLisa.”

It’s that kind of devotion to customers, staff and community alikethat will keep Certified Express Lube& Auto Service a successful shop formany years to come. SO

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Seller’s Background &Motivation to SellJust a few short decades ago,when Terry Flaherty was in hisearly 30s, he set a goal to retireat age 55.

“I also set targets for what Iwanted to make and my networth at that age. So when Ihad been in the auto servicebusiness for 35 years as thebusiness got tougher andtougher all the time, for me itwas the right time to exit. Iturned 59 and wanted to takesome time to enjoy life while Istill have good health and the vi-tality to do it,” noted Terry in arecent interview.

He continued, “I was a shopowner for the past 15 years. Butfor the first 20 years of my workcareer, I was a Midas Corporateemployee. I started out on theshop floor as a mechanic fixingcars and then came up through

the system, first to a managerposition, then to a multi-shopsupervisor and then to a salesmanagement trainer. I was run-ning 11 shops in Salt Lake Cityfor a year or so and then whenthe company-owned system wasbroken up, I sought out and pur-

Case Study: Selling A Multi-Site Auto Service EnterpriseUtilizing The Services of a Broker

“Sometimes the whole is greater than the sum of its parts, butsometimes the reverse is true and a packaged deal will yield lessthan the individual shops sold separately…”

…Terry Flaherty, seller of 4-shop enterprise

“I’m now a firm believer, as I was 30 years ago and will always be, inbeing prepared for success. In this business, if you can do that, Ithink there is good money…”

…Paul Davidson, buyer of one of the shops

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

24 |Shop Owner|September|October 2013

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chased four shops on Cape Cod, whichI had two or three years of experience running.”

The purchase of a shop in Mt.Ephraim, NJ, happened later.

“I had the four stores here on theCape and we had strong, healthy in-creases in business…from $2.5 mil-lion to $4 million in the four stores. Imet up with a guy who used to workfor me many years ago in New Jerseyand thought that maybe I could repli-cate what I did on the Cape andmake him the lead guy on it. But as itturned out, that was a bit of fancifulthinking. So I ended up with the oneshop in New Jersey and barely keptmy head above water. It was not asuccess story like on Cape Cod.”

The Multi-Shop Enterprise: AnOverviewAll shops in the enterprise are estab-lished, well-maintained, profitableturnkey operations that already haveequipment, invento-

ry and employees in place. Located in charming Cape Cod, MA,

three of the businesses offer a buyer aunique opportunity to live, work andrelax in one of New England’s most de-sirable areas. Near the beach and di-verse recreational and cultural activities,the location of the three Cape Cod busi-nesses is characterized by an affluentpopulation and limited automotive serv-ice competition.

The fourth business location, in Mt.Ephraim, NJ, is in one of the majorcommercial hubs of Camden County,NJ, across the river from Philadelphia.

Selecting a Business BrokerIn regard to selecting and utilizing theservices of a business broker, Terry said,“I first attempted to sell the shops onmy own and I didn’t get a heck of a lotof responses to my newspaper ads. Itwas very awkward trying to deal withthe few folks who responded becausethey did not want to be forthcoming asI tried to get some sense of their qualifi-cations before I started sharing my con-fidential business information. So I at-tempted to do it on my own and foundit to be uncomfortable and awkward,and ultimately that led me to go with abroker.”

Terry continued, “In fact, I didn’t goat first with Art Blumenthal, but wentinstead with a local broker who hadthe listing for a couple of years. Although he had some leads here andthere along the way, nothing came ofthem. I found that after I had the opportunity to talk with Art that he re-ally understood the automotive servicebusiness and he was able to veryquickly analyze my P & L and presentit in the most favorable way. He wasable to understand which cash flow

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28 |Shop Owner|September|October 2013

items were those that could be recastas additional earnings for the owner.So I think it was so much easier deal-ing with him than any of the effortspreviously trying to do it myself orwith another broker who had no spe-cialized experience with selling anautomotive service business.”

The Business Enterprise:What’s It Worth?Terry said, “From my perspective, Artexceeded what I had in my mind asa minimum acceptable price for mybusiness. In four out of the fourshops I sold, he was able to negotiatewell and got me a higher sales pricethan what I otherwise would have bymyself for sure.

“In regard to selling a multi-shopenterprise, although you may find abuyer who wants the whole group, it’smore likely and you can probably ultimately do better in the sale bybreaking up the enterprise into indi-vidual businesses. Sometimes the

whole is greater than the sum of itsparts, but sometimes the reverse istrue and a packaged deal will yieldless than the individual shops soldseparately. That’s what happened inmy case…he did a better job sellingthem, with two to individuals and twoto a pair of partners.”

Based upon his experience, Terryprovided valuable advice for potentialsellers when he said, “Sit down withyour business financials and thinkabout them in terms of a presentationto a buyer. Strike a balance betweenmaximizing cash flow, while ensuringyou aren’t killing the goose that laysthe golden eggs while doing so.

“We all have a tendency as busi-ness owners to set up our books insuch a fashion as to make sense to usand accomplish the kind of things wewant to accomplish, but some ofthose things may be contrary to mak-ing the business attractive to a buyer.The sooner you get at that the better,or you may ultimately face the conse-quences when determining a sale

Terry and Jenny Flaherty happily in retirement on a

recent trip to Hawaii, hiking the “Pillbox Trail” in a

windswept place called Lanikai on the island of Oahu.

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price. Structure your P & L to clearlydelineate between business expenseaccounts and items that may be bene-fits and perks to the owner. Keep inmind that the sales price ultimatelywill be a function of cash flow.”

Scope and Timeline of SalesProcessTerry was asked about the benefits oftime management by utilizing a busi-ness broker and said, “I think the keything there from my perspective wasalso that there was a great deal oftime involved. It’s not as if you listthem one day and you’re closing 30days later. I had a fifth shop that I soldback in 2007 to one of my managersand that was a pretty straightforwarddeal and went pretty fast. But after Idid that, I really didn’t have any man-agers who had the financial qualifica-tions or breadth of experience neededto own a shop themselves.

“So when I was interested in sellingthem in 2007, I made some efforts todo it myself and I wasn’t in any bighurry and it was something that I didmore passively than actively. It was2009 when I hooked up with a localbroker, and he had a two-year listingagreement. Then, in 2011, I hookedup with Art and only then did thingsreally start happening. I was prettypleased because within 30 to 60 dayshe had some good qualified candi-dates. It’s fair to say that we weren’tever not actively working somebody.They didn’t all pan out, of course. Butwe had a pipeline we seemed to beworking with.

“There was a strong sense on mypart that the sales were going to hap-pen…never was I thinking ‘Oh myGod, am I ever going to find a buyer?’

It was just a matter of patience andconfidence in Art.”

Background of Buyer of EastFalmouth, MA, Location &Motivation to BuyPaul Davidson spent 27 years as anexecutive in defense and intelligence,capping his executive career as a senior vice president for a Fortune500 company in charge of about$100 million a year.

In a recent interview, Paul said, “Igot tired of eating stress for breakfastand decided it was time to retire. Butafter about three years of retirement, Iwas pulling my hair out with bore-dom…I just couldn’t take it. And as Iwatched my retirement fund dwin-dling, I decided to start lookingaround for something to buy.”

When asked how the stress of own-ing his own auto service businesscompares to the stress of his formercareer, Paul replied, “It’s different. Inthe business I was in, you live on five-year contracts. If a big contract is lost,you have to lay off 350 people at atime. They’ve got kids and mortgagesand there is a lot of stress in that kindof business role. Sure, it’s great whenyou win one of those big contracts;signing a $100 million contract feelsgreat. But sometimes you lose. I prob-ably spent 60% of my time on theroad, which isn’t particularly good forfamily life. And I just decided it wastime to retire. I’ve got a boat, I thoughtI’d play golf…it would be great. Whichit was for about a year, maybe a littlebit more. But you just can’t go from60 mph to zero too easily, dependingon your personality.”

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Buyers of Other LocationsBusiness partners Larry Mahan andDan LaCouture purchased the Hyan-nis, MA, and Orleans, MA, shops.

Larry previously owned aPontiac/GMC car dealership on theCape for many years until the Pontiacmodel line was discontinued. He is aveteran of the automotive businessand a very sophisticated businessman.

Dan is a former profession-al hockey player who had togive up the sport after a se-ries of injuries.

Joe Piroso purchased theMount Ephraim, NJ, location.

Scope and Timeline ofPurchase Process ofEast Falmouth, MA,Location

When Paul Davidson wasasked how he decided on theautomotive service industry ashis next business challenge,he replied, “We looked at afew businesses…an ice creamshop, a heating/ventilation/air conditioning type companyand few more. My wife actu-ally found the automotiveservice opportunity listing onthe Internet, so I started doingsome research. I even spent afew days across the street at McDon-ald’s in the parking lot watching thecoming and going at the shop.”

He continued, “My assessment ofthis opportunity was that it doesn’thave a tremendous upside. I won’tgrow it to five times what it was. Butit really doesn’t have a big downsideeither. So as far as making the deci-sion, we factored in the facts that itwas a good location, did good busi-

ness, with good people…so we decid-ed to take the jump.”

As far as the purchase process time-line, Paul said, “Dealing with Art Blu-menthal or with Terry Flaherty was nota problem. Art was knowledgeableand helpful, he understands the busi-ness, he knew the sellers, he’s aprince as far as that all went. Delaysoccurred in dealing with the bank.

Even though we had hoped for afaster process, the bank slowed usdown. So the whole process occurredbetween January and May. It shouldn’thave taken that long, but it just did.”

Post-Sale Activities &ObservationsSeller Terry Flaherty is a strong believ-er in using a broker…and not just any

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Paul Davidson at the counterof his East Falmouth, MA,shop with a customer.

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general commercial broker, but onewho has automotive service experi-ence. He said, “Utilizing the servicesof a broker allows the client to focuson the business and not be distractedby all of the time spent on packaging,marketing, advertising, qualifyingclients, preparing offers, etc.”

New business owner Paul David-son has achieved an increase in salesrevenue in his first year of business.“I took over May 21st last year. In2011, the business did $834,000.Last year we did $924,000. And thisyear I think we’ll do $1 million. Thelast time this shop did $1 million was2006,” noted Paul.

He continued by noting that hestarted working longer hours toachieve that. “I think it was a littleshort of staff when I purchased theshop, particularly at the front desk. Idon’t think we were moving customersthrough fast enough based upon theamount of work we could take in. So Istarted working 70 hours per week.”

Paul has welcomed the opportunityto “Be Your Own Boss” and is nowlooking at expanding or purchasinganother shop as well.

He wanted to share his views withother potential buyers in the autoservice industry when he said, “Frommy perspective, the auto service in-dustry as it once was is gone. It’s acompletely different business. There isa new breed of people coming in.There is a bright future, you can runyour own shop, you can make goodmoney, and you can make a differ-ence if you hire good people.

“My philosophy differs from some inthat I believe when people try to takeover these shops and start by cuttingthings, my opinion is that you need todo the opposite. If you infuse a little

money and be sure you have staff todo the job, the benefit will be greaterthan the investment. If you hire high-quality people, they will sell them-selves, they will sell their work, andyou can take in more work. When youare telling people that you would loveto help them but can’t see them for aweek from now, you’ve lost the busi-ness. You just won’t see them again.People expect things to be done now.

“I’m now a firm believer, as I was30 years ago and will always be, inbeing prepared for success. In thisbusiness, if you can do that, I thinkthere is good money. Don’t skimp.Buy good equipment, stock all theparts you can, service your customersas the friendliest shop in the neighbor-hood and they will come back —90% of my customers are repeat cus-tomers. We go out of our way to makesure they keep coming here. Becauseonce you lose them for whatever rea-son, they will try every other shopwithin a five-mile radius before yousee them again. It takes you a year tobuild up a retained customer; it takesabout 10 minutes to lose them. It takesyou another year and a half to getthem back. It’s shortsighted not to beable to keep those customers whenyou spent so muchtime and money culti-vating them in the firstplace.” SO

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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.

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Yet, there are some timelessrules that are often forgotten.During these tough, competitivetimes, I feel I can best help youby reiterating the six most important rules when it comesto customer retention.

Rule #1. Create a prin-ciple-centered culture.All great companies real-ize that getting to thetop, and stayingat the top, isdependenton having aculture thatis based onprinciples.As a business owneryou need to ensurethat you have a clearlydefined Mission State-ment, you need toshare it with all of youremployees and youneed to constantly keepit at the forefront of theirminds.

Remember, your “goals”

are what you are going to accomplish, whereas your Mission Statement is what youwill be doing along the way.For example, a Mission State-ment could read, “It is the mis-

Customer|Service|

The Six RulesOf Maximizing Customer Retention

We all know that there are many things you can do when it comes tocustomer retention. The list includes follow-up calls, sending outservice reminder notices, ongoing advertising campaigns that keepyour name at the top of the customer’s mind and scheduling thenext visit at the time of car delivery, to name a few.

by Bob Cooper, president, Elite Worldwide, Inc.

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sion of Elite Auto Service to deliver ex-traordinary service to our customersand opportunity to our employees,while never compromising our ethicsor our responsibility to society.”

Rule #2. Offer and deliver a goodvalue. I’m not suggesting that you bethe lowest priced or the highest pricedin your community. But, I am suggest-ing that you deliver a good value in re-turn for the price you charge. Compa-nies that charge more than they shouldjust because they typically discoverthat their profits will go up in the shortterm, will lose their customer base atthe same time. Great companies arecompetitive, not greedy, and that iswhy they become, and remain, greatcompanies.

Rule #3. Hire the Superstars. Thesuccess of your company, and yourability to retain customers over the

years, will be dependent on the peoplewho work with you. As I’m sure youwill agree, just being good is no longergood enough, so you need to haveemployees who truly are superstars. Ican only hope you bear in mind thatwhenever someone buys a product,they will always remember the prod-uct, but whenever they buy a service,they will always remember the peoplewho are providing the service. Simplyput, your customers’ impression ofyour business will be only as positiveas their impression of the people whowork with you.

Rule #4. Provide consistency in theexperience. Great companies such asMcDonald’s, Starbucks and Nordstromall understand the importance of con-sistency in service. With any of thesecompanies, before you step into theirstores you already have an expectationof what the experience will be.

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The top shops understand this rule,and that is why they have clearly defined procedures for everything theydo, from handling the first-time caller,through the entire repair process, tocar delivery. When customers feelthere is no consistency in service, theywill typically look for an alternativeservice provider.

Rule #5. Deliver on your promises. Hopefully you can seehow this rule ties into your MissionStatement. If you want your customersto continue to return, then make surethat all of your employees choosetheir words carefully when they aremaking a commitment to your cus-tomers, and then ensure that theyover-deliver on those promises.

Rule #6. Never put money aheadof people. All world-class businessowners understand that money is theresult of doing the right things for theright reasons. When you embrace thisrule, you will also discover why the

world-class businesses will never taketheir customers for granted. They un-derstand that it’s the trust their cus-tomers have in them and their peoplethat is priceless, not their credit cards.

In closing, there are a number ofthings you can do to improve yourshop’s customer retention, but the onepromise I can make to you is this:These six rules are timeless ones, andif you apply them to your business,you will see more repeat customers.And, unlike your competitors, youwill be building a business that willlast for generationsto come. SO

36 |Shop Owner|September|October 2013 www.ShopOwnerMag.com

Since 1990, Bob Cooper hasbeen the president of EliteWorldwide Inc.,www.EliteWorldwideStore.com,an ethics-based company thathelps both struggling and suc-cessful shop owners take theirbusinesses to new levels through one-on-one coachingfrom the industry’s top experts. The company also offersshop owners sales, marketing, and management seminars,along with service advisor training. You can contact Bob [email protected], or at 800-204-3548.

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Integrity Automotive owners pictured L-R are: Charlie and Julee Baxley, and Barb and Don Meeker.

“Our biggest success is the relationshipbuilding and trust for retaining our

customers for a long time.” – Julee Baxley, Owner

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“Our pledge to you as our customer is to uphold a sound businesspractice, with the highest ethical standards, and to exceed our

customers’ expectations through providing exceptional customerservice and maintaining a professional level of repair.”

The owners of Integrity Auto-motive make one thing veryclear on their website: Integrityisn’t just part of the shop’sname; it’s the basis of every-thing they do. That was the mutual goal when Charlie andJulee Baxley, and Don and BarbMeeker decided to open an automotive repair business inTucson, AZ, more than sevenyears ago in February 2006.

Apparently, that commitmentto quality and professionalismmade an impression on cus-tomers. Just three years later,they had outgrown their first facility. Moving Integrity Auto-motive to a larger location amile away allowed the ownersto expand operations into eightbays, giving the shop’s threetechs — two ASE Master Certi-fied and one ASE Certified —more room to work. The moveeven allowed the owners toopen Integrity Diesel in theoriginal shop location.

So how did the shop’s reputa-

tion for quality repairs grow soquickly? Good old-fashionedface-to-face networking, whichis quickly becoming a lost artin today’s digital world. Juleesays she jumped right into herinitial role of marketing and advertising with gusto. She notonly joined the Better BusinessBureau and became affiliatedwith the ASE Blue Seal of Excellence program, but shealso became a member of theTucson Business NetworkingAssociation, Alliance of Con-struction Trade and MaranaChamber.

“I joined every networkinggroup available in our commu-nity,” she explains. “My full-time job was to get the wordout, and to develop relation-ships with other business own-ers and local community mem-bers. Both Don and I are nowinvolved with a number of dif-ferent networking groups. Thisand our local reputation arewhat got this business off the

Shop|Profile|

Integrity AutomotiveWhat’s In a Name? Tucson Shop Capitalizes OnQuality Repairs and Top-Notch Customer Service

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by Debbie Briggs, contributing writer

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ground.”Julee also

founded a localcharity organiza-tion called “HighHeels for Hope,”which includesarea businesswomen workinghard to give backto the communityall year. Knowingthat staying up on ever-changing industry standards is also a must, Juleeserves as chapter president of the Arizona chapter of ASA representingTucson, and she also sits on the advisory board for Parts Plus.

Solid FoundationMaking those connections early onhas certainly paid off in terms ofbuilding an impressive customer

base. It’s no surprisethat word-of-mouth referrals from Integrity’s many satisfied customersstill tops the list of effective market-ing strategies.

“Our biggest success is the relation-ship building and trust for retainingour customers for a long time,” Juleesays. “Another asset is that ownerBarb Meeker drives our courtesy vanmost of the time. How about that —an actual owner interacting one-on-one with many of our customers!”

Also a hit with customers has been

40 |Shop Owner|September|October 2013 www.ShopOwnerMag.com

Owner Charlie and master technician, Glen.

Integrity Automotive Diesel location crew, pictured L-R are:

Jerry, Chris, Owner Don and Master 2 technician, Joey.

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a referral program in which each cus-tomer providing a referral is thankedby letter and entered into a monthlydrawing.

“We pick four names a month fromthose who have referred a customer tous, and we send each of them a mon-etary gift card,” Julee says, adding thatthey have also donated maintenancediscount cards to the local schools forteachers and staff members. “Commu-

nity involvement and networking iscritical to operating a successful automotive repair shop today.”

Julee says shop appearance hasalways been a top priority at Integri-ty Auto; after all, you get only onechance to make a good first impres-sion.

“We get many compliments fromcustomers on how well our shop iskept clean and organized,” she says.“We keep it very clean, and also welldecorated with the latest colors andtrends. We believe it communicates toour customers that they aren’t just anumber here. We pride ourselves onproviding the best upfront service possible — no surprises!”

Retaining EmployeesWhile every shop owner has mostlikely had to deal with turnover nowand then, it can be challenging to findtimely replacements who fit in with ashop’s culture. Julee says word-of-mouth advertising and focusing on themany benefits Integrity Automotive of-fers both have helped attract the right

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employees at just the right times.“Retaining current employees and

having low turnover rate is an ongo-ing challenge,” Julee admits, but theshop’s many benefits attract qualitycandidates. “We offer insurance bene-fits; current and active training; family values and atmosphere; and fair, in-centive-based pay plans with reason-able expectations for employees.”

Julee says they often have to lookno further than the vendors, tool sales-man and local automotive associa-tions for qualified candidates.

“Tucson is a big town with a smalltown feel, and techs talk!” she says.“Relationships with local trade schoolshave been useful over time, as well.”

Staying CurrentWhile community relations has beencritical to Integrity Automotive’s suc-cess, Julee says new ventures are also

proving invaluable. Take the shop’swebsite, which offers online appoint-ments and also features mobile re-sponsive web design to make naviga-tion by smart phone users that mucheasier.

“Website presence and constant ac-tivity is a must in today’s world,” Juleesays. “Online communication is being

used more than ever. You have tokeep up with the times.”

Over the last seven years, onething that has been invaluable isthe shop’s affiliation as a PartsPlus Car Care Center. Julee saysthe partnership allows IntegrityAutomotive to offer its cus-tomers programs that are mutu-ally beneficial.

“Teaming up with Parts Plushas allowed us to offer pro-grams that help our customersduring slow economic times,but don’t lose money for ourbusiness,” Julee explains.“There are a lot of money-saving programs in our industry that can boost yourprofitability.”

At the heart of everythingthey do, Julee says, always

goes back to one thing: customerservice.

“Most consumers today expect andshould receive service as a first priori-ty,” she concludes. “Effective commu-nication with not only customers, butemployees and suppliers as well, iscritical to success.”

While no one knows what tomor-row may hold, one thing is for sure —the owners of Integrity Automotivewill continue to provide the quality repairs and top-notch customer service their name implies. SO

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Owner Don and technician, Joe.

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Navigating the family in a fam-ily-run business can be a bitlike taking a boat to Alaska’s Aleutian Islands as the ice flowbegins to break in the Spring.Make a turn in the wrong direction and you have a disas-ter on your hands and, insome cases, you may never be

heard from again.Business management advi-

sors are typically separated intotwo camps regarding this topic.

In the first camp, my Bottom-Line Impact Group coach, JohnWafler, has two rules when itcomes to hiring family to workin your business:

#1. Never hire family, #2. Refer back to rule #1.Over the years, he’s seen

many shops with family work-ing for the owner and, in mostcases, they did not work out.So his advice has merit basedon experience; I only wish Ihad listened when he coachedme not to hire family (more onthat later).

In the other camp, RickSchissler, a Silver Fox Advisor,says that there is nothing likeworking with family. He alsospeaks from experience, beinga part of a family-run companyfor most of his career. Workingfor his father and grandfather,

Shop|Management|

The Challenges &Opportunities Of ‘Family’ In A Family-Owned Business

The phrase “Family Owned and Operated” creates a warm flow ofpositive emotions when you talk about your company to yourcustomers, especially your female customers. But having family as apart of your business creates a whole new dynamic of which mostpeople are unaware.

by Vic Tarasik, owner, Vic’s Precision Automotive

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they knew on a daily basis what wasexpected from each other and createda work environment that was con-ducive to success.

Benefits Of FamilyThere are some key benefits of havinga family member work for you. First,you know if they padded their resumeand whether they went to college ornot. You know their talents and skillsets and, in most cases, their tempera-ment. The background check needs togo only as far as the next family gathering.

In the auto repair industry, trust isthe cornerstone of our service prom-ise, and the stronger the trust factor isat your shop the more effective yourservice promise will be. So having atrusted family member can help youto reinforce that value-added compo-nent of your business. Also, in manycases, family will work odd hoursand, in some cases, accept a lesserwage because they know you andlook at the big picture as it relates tohelping meet the shop’s goals and ob-jectives. This can be helpful in compa-ny startups or during slow times.

The Challenges Of FamilySome family members feel entitledbecause you are their brother or sis-ter, and when you aren’t around willuse that card with customers, ven-dors and employees.

They may not follow all of the com-pany guidelines you have in your em-ployee handbook. They know that youwill give them leeway and treat themdifferently because they are “family.”But, if you don’t think your employeesare taking note, think again. They are,

and if you are not careful you maylose a valued team member becauseyou don’t let them do the same. Evenworse, you could be called on thecarpet for discrimination by your government agency.

Family knows how to push your but-tons. While you may be the owner ofthe company, you can still be viewedas the son, daughter or younger sibling.And that distinct pecking order thatwas evident while you were growingup can show up again, even thoughthat person is employed by You!

One of the biggest challengesthough can come from separation, either by their resignation or you ter-minating them. How do you thinkyour next Christmas dinner will goover when your brother-in-law is sit-ting across the table from you afteryou fired him a few weeks earlier? Ishiring a family member worth thehurt feelings?

If you do decide to bring on a family member, make crystal clearyour expectations up front and expressthat at work you both wear the em-ployer/employee hat and at the end ofthe day you put on the family hat.

Hold them to a higher standardthan the rest of your employees, thisway no one will be tempted to feelentitled and your employees will feelthat you are using the same measuringstick to judge their performance.

My Personal Experience OnHiring FamilyAfter the economic meltdown in2008, I had some family memberswho fell on really hard times and losteverything — their business, theirhome, etc. Concurrently, things werebooming in Houston, the shop was

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doing well and we were having agreat time at the company. So, wehelped them out and gave one ofthem a job at Vic’s, which was againstthe advice of my business coach.

At first, things worked well as thisfamily member went to work and rosein responsibility, moving from lubetech, to service advisor and eventuallyto assistant manager. My loyalty tohim prevented me from seeing or real-izing what was actually going on.Morale began to suffer and car countfell, but the average RO dollars wentup to cover for the lost revenue fromcar count. Employee and customersatisfaction was falling in the processof me turning over some of the responsibilities to him.

In attempting to find out the sourceof the issue, I turned over every rockexcept one, which was to look hardinto this family member’s perform-ance. I did inquire to customers andemployees, but they all said, “thingswere just fine.” What I know now wasthat the employees were afraid theywould lose their jobs if they came for-ward with information about the fami-ly member, and my customers did notwant to hurt my feelings.

Bottom line. Nepotism can, andwill, kill a company if you’re not care-ful. I didn’t think I was guilty of lettingthis happen, but I was.

A short while ago, the assistant man-ager and I separated, and while Iwould like to say it was amicable, itwasn’t. The upside, though, is the ROcount is increasing, the average dollarsper RO is holding, customers are re-turning and my employees are happierthan I’ve seen them in a long time.

My longest-term employee, Lawney,put it to me this way the other day.He said, “I’m having the time of my

life and haven’t been happier here!”That sealed my decision, as he wasintegral to the shop before and afterfamily arrived. The downside, though,is that a 40-year-old family relation-ship has been laid to rest.

So my lessons learned are this: Ifyou are thinking about hiring family,make sure you do what I didn’t.

Here is the short list.• Set very specific guidelines to

which you hold that person account-able.

• Review performance benchmarksthat are within their responsibility ona weekly basis.

• Take action as soon as you suspect something is wrong.

• View failures as the opportunity tocoach.

• If you find they are unwilling tofollow your guidelines, terminate themright away. Failure to take action willcause more damage from which youmay not recover.

• If you are going to promote thatperson to a position of responsibility,make sure they are doubly qualifiedso it does not appear you are puttingthem in that role because they arefamily.

Even though I’ve shared a negativeexperience, there are many positivestories of families successfully workingtogether in our field. If you have astory to tell, pleaseshare it with us atShop Owner magazine. SO

www.ShopOwnerMag.com September|October 2013 |Shop Owner|47

Vic Tarasik is the owner of Vic’sPrecision Automotive, TheWoodlands, TX, a 30-year industry veteran and long-time20 Group member. His 10-bay, 7,000 sq.-ft. shop spe-cializes in customer service, in addition to expert vehiclerepairs. Vic can be reached at [email protected].

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Page 50: Shop Owner, September/October 2013

Failing to figure out your best target will not only result in wasted marketing dollars, but

can also prevent youfrom achieving

sales growthand increased

car counts.

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Page 51: Shop Owner, September/October 2013

Ever notice how in upscale neighborhoods,even the fast food restaurants are nicer?

Instead of a bright red roof and the famousgolden arches, the McDonald’s in ritzy Aspen, for

example, boasts a second-floor fireplace and is housedin a sedate red brick building that blends in seamlessly with

the surrounding architecture.

The fancier digs reflect McDonald’s understanding thatits target market in Aspen is fardifferent than its target marketin Akron.

The same idea holds true inthe automotive repair world,but, unfortunately, too manyshop owners fail to realisticallyidentify their ideal market orcustomer. I often get requestsfrom shop owners who want toadvertise to upper-income cus-tomers in neighborhoods far

from their shops. That approach doesn’tusually yieldmuch success

because the households inthose areas may not be theright fit for those shops.

Failing to figure out your besttarget will not only result inwasted marketing dollars,but can also prevent you

from achieving sales growthand increased car counts. Here

are some tips to help you zeroin on the households that aremost likely to visit your shop.

The first step in identifyingyour ideal customer involves understanding that as a shopowner, you are what your neigh-borhood is. Have a shop in amiddle-income, suburban mar-ket? Your customers will likelybe middle-income suburban res-idents. Located near a wealthy,downtown hub? Your customersmay be busy office workers.Whatever the environment, youneed to come to grips with thefact that you will have to growand survive based on the peoplelocated within a three- to five-mile radius of your shop.

Demographics & IncomeAdvertisers can supply you witha huge range of demographicinformation on your neighbor-hood, but the key component is

Sales|Marketing|

Identifying YourTarget CustomerHelps Maximize Your Marketing Dollars

www.ShopOwnerMag.com September|October 2013 |Shop Owner|49

by Tim Ross, president, Mudlick Mail

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Page 52: Shop Owner, September/October 2013

income. Your ideal customer is usuallythe highest income customer locatedclosest to your shop. Income driveshabits, to which you can better tailoryour marketing efforts. For example,people with a lot of money typicallyaren’t coupon shoppers. They makedecisions based on features,benefits and, most impor-tantly, convenience.Lower income cus-tomers, on theother hand, aremore price-con-scious and will respond more todiscount offers.

Your target mar-ket will also influ-ence the type of serv-ices you offer. If your

ideal customers are lower-to-middle income households, offering premiumservices will be difficult because youwon’t be able to charge the ratesneeded to support that structure. Forupper-income customers, time is oftenmoney, so providing a free shuttle

service and longer hours maybe the benefits you need

to consider offering.Once you’ve identi-

fied your ideal cus-tomer, you have tomake sure yourshop, like the Mc-Donald’s in Aspen,matches the market

you’re hoping to attract.Here are some

factors to consider when

50 |Shop Owner|September|October 2013

Your ideal customer is usuallythe highest income customerlocated closest to your shop.

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Page 53: Shop Owner, September/October 2013

accomplishingthat match:

• Shop appearance.Let’s not forget that forsome consumers, imageis everything. If your

shop is dirty, has little curb appeal orlooks unsafe, potential customers willpass you by. Your shop doesn’t have tobe new, but it should be clean andwell maintained (no peeling paint,frayed carpets or cracked floors).

• Staff appearance. Is your staffdressed in technician garb covered withgrease stains, or are they wearing poloshirts and khakis? And, remember, appearance goes beyond how your stafflooks. You need to ensure that yourfront desk personnel are well spokenand have the customer service skillsneeded to attract your target market.

• Your reputation. Do you have agood reputation in your communityfor fixing cars? Do you feature testi-monials from satisfied customers on

your website? Ifyour target market is social

media savvy, do you have positivereviews on Yelp, Google and Face-book? If you answered “no” to any ofthese questions, you may need tospend time repairing your reputationbefore launching a marketing or ad-vertising campaign.

Don’t forget that your ideal cus-tomer is going to vary wildly depend-ing on the neighborhood in whichyou operate, but if you employ theright strategies to target that customer,you can make money in just aboutany location. SO

www.ShopOwnerMag.com September|October 2013 |Shop Owner|51

Tim Ross is president ofMudlick Mail, a leading providerof direct mail campaigns to theautomotive repair industry.Mudlick Mail has worked withclose to 1,000 automotive repair and transmission shops across the U.S. and Canada, helping them improve their car count and increase sales. The company teaches its clients how tounderstand consumer-buying habits and shows them howto create effective systems to maximize the value of theirmarketing campaigns.

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