WMDA NEWSAn Of f ic ia l Publ ica t ion of the Washington DC, Mary land & Delaware Serv ice Sta t ion & Automot ive Repai r Assoc ia t ion

WMDA NEWSA P R I L 2 0 1 4V O L U M E 1 3 / I S S U E 4

TRAINING DAY 2014… SEE PAGES 8-9THE UPS AND DOWNS OF THE FAIR LABOR STANDARDS ACT… SEE PAGES 2-5

C E L E B R A T I N G O V E R 7 5 Y E A R S O F S E R V I C E T O O U R M E M B E R S

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WMDA/CAR ENDORSEDMEMBERSHIP BENEFITS &

SERVICES PROVIDERSIf your business needs any of the following products or services,be sure to check out these companies endorsed by WMDA/CAR.

ATM MACHINES

Intelicom, Inc.Larry Shapero

1-877-666-6269Email: intelicom@verizon.net

AUTO PARTS SUPPLIER

Parts AuthorityStan Bailey

202-829-6315Email: sbailey@partsauthority.com

CASTROL BUYING PROGRAM –BULK OIL AND PREMIUMS

PPC LubricantsGene Nace

1-717-215-7253Email: gnace@ppclubricants.com

CREDIT CARD PROCESSING

First Merchant ServicesDan Cohen

1-866-511-4367, ext. 105Email: dcohen@firstmerchant.us

CREDIT UNION

NASA Federal Credit Union1-888-627-2328

Email: support@nasafcu.comWebsite: www.nasafcu.com

ELECTRICITY PROGRAM

MAAGICTom Gussen – Metromedia Power

1-800-828-9427, ext. 0031Fax: 732-440-0031

Email: tgussen@mmenergy.com

INSURANCE – LIABILITY, UNDERGROUND STORAGE TANK,WORKERS’ COMP, HEALTH INSURANCE

Benjamin F. Brown Insurance Agency/UTICA/Meadowbrook

Ben Brown or Berry Brown1-800-861-3434

Email: berry@benbrown-ins.com

LEGAL SERVICES

Lerch, Early & Brewer, CharteredHarry Storm

301-907-2817

LEGISLATIVE & REGULATORY INFORMATION

WMDAKirk McCauley

1-800-492-0329, ext. 114Email: kmccauley@wmda.net

MOBILE DIAGNOSTIC SERVICE

Replace My Stuff, LLCAlicia Fairall

443-790-6957Email: aliciafairall@yahoo.com

TRASH/DUMPSTER BROKER

Coastal Trash ServiceIan Djuric

410-490-3769Email: coastaltrash@gmail.com

UNIFORMS, SERVICES, SOLUTIONS

Unifirst CorporationJeff Thompson

1-888-223-3056Email: jthompson@unifirst.com

USED OIL, ANTIFREEZE & CONTAMINATED GAS DISPOSAL

RecOil, Inc.Bernard Reiley

1-800-346-9551Email: breiley@recoilinc.com

LET YOUR MEMBERSHIP WORK FOR YOU!

Simply participate in all of the programsfor which you are eligible and you

will save or make enough to pay for your membership in WMDA/CAR!

Auto Parts Superstores

4321 0000 0000 0000FMS INC

4321 0000 0000 0000FMS INC

ReplaceMy Stuff, LLC

WMDA1532 Pointer Ridge Place

Suite GBowie, MD 20716

301-390-0900

Fax: 301-390-3161

Website: www.wmda.net

Amy GaileyDirector of Finance and Administration

301-390-0900, ext. 113agailey@wmda.net

Marta GatesDirector of Operations301-390-0900, ext. 115

mgates@wmda.net

Len GentilcoreMembership SalesCell: 443-758-6531

lgentilcore@wmda.net

Kirk McCauleyDirector of

Member Relations301-390-0900, ext. 114kmccauley@wmda.net

EditorMarta Gates

Marketing DirectorLaKisha Pindell

Graphic DesignerFrank Lang

T A B L E O F C O N T E N T S

WMDA Endorsed Membership Benefits & Service Providers ......................Inside Front Cover

Editorial: The Ups and Downs of FLSA ................................................................................2

On the Legislative Front: Estate Tax ReformPushes Ahead in Maryland..................................................................................................6

From the CAR Desk ............................................................................................................7

As I See It: TrainingDay 2014 ..............................................................................................8

TrainingDay 2014 Photo Highlights ....................................................................................9

Remembering the “Good Olds” When Motor Oil was Simple ............................................10

Kirk’s Korner: Help and the Power of One..........................................................................12

A D V E R T I S E R ’ S I N D E X

Benjamin F. Brown Insurance Agency ....................................................Outside Back Cover

Maryland Pump & Tank ......................................................................................................2

MTD Services, Inc. ..............................................................................................................3

Petroleum Marketing Group ................................................................................................5

Spigler Petroleum Equipment, LLC ......................................................................................4

Tire Distributors, Inc. ................................................................................Inside Back Cover

2 W M DA N E W S | A P R I L 2 0 1 4

by Roy Littlefield

E D I T O R I A L

Whenever WMDA or SSDA-AT has held seminars on the FairLabor Standards Act of 1938, the rooms have been packed.Understanding this law, especially as it relates to smallbusinesses, has been a challenge. Now the law is in the newsagain as both the President and the Congress attempt toamend the law.

As expected, on March 13, 2014, President Obama issued aPresidential Memorandum to the Secretary of Labor that willhave major implications for all employers – large and small,public and private. President Obama’s stated goal is to“increase dramatically the number of employees who arepaid extra for overtime work.” This will be accomplishedby narrowing and redefining the requirements of the “whitecollar exemptions” for salaried executive, administrative,professional and computer positions.

While the memorandum provides little detail about thechanges to come, SESCO predicts the Department of Laborwill raise the current minimum guarantee salary thresholdof $455 per week ($23,660 annually), to as much as$1,000 per week ($52,000 annually). Thus, for a position tobe eligible for an overtime exemption, he/she must beguaranteed at least $52,000 per year. This annual salary ismore than double the current requirements and will instantlyrequire employers to pay overtime for those making lessthan the expected $52,000.

SSDA-AT, WMDA, and the Small Business Legislative Council

immediately announced their opposition. Noting that thisrequirement could cause labor costs to explode as millionsof salaried workers would become eligible for overtime pay.An owner of multiple stores may have salaried managers ateach store. Hours worked by salaried managers are normallynot recorded. This could have a very negative effect on ourmembers who own multiple stores.

H.R. 1406 WORKING FAMILIES FLEXIBILITY ACT

On Capitol Hill, the House of Representatives has passedlegislation, H.R. 1406, to amend the Fair Labor StandardsAct, which would allow an employee in lieu of monetaryovertime compensation, compensatory time off at a rate notless than one and one-half hours for each hour ofemployment for which overtime compensation is required.

Some 168 members of Congress cosponsored H.R. 1406.H.R. 1406 has been referred to the Senate Committee onHealth, Education, Labor and Provisions, where a companionbill, S. 1623, has 11 Republican Senator sponsors.

SESCO, who we retain as a member benefit for labor advicefor association members, asserts that overtime violationscontinue to be an employee top financial liability. To quotefrom the March 2014 SESCO Report:

As SESCO conducts labor and employment audits with afocus on complying with the Fair Labor Standards Act(minimum wage, overtime and recordkeeping requirements),overtime violations continue to be a major liability facingemployers of all sizes and industries. Further, theDepartment of Labor has increased its number ofinvestigators by one-third (1/3) creating more enforcementaction.

As we explore overtime violations, SESCO has created thefollowing checklist to help HR and payroll staff as well aspayroll processing companies in understanding thecomplexities in complying with the regulations. Please note,to those organizations who utilize an outside third-partyto process payroll that your organization will be heldliable for all back wages and claims up to three (3) years

THE UPS AND DOWNS OF FLSA

W M DA N E W S | A P R I L 2 0 1 4 3

federal and up to four (4) years plus attorney fees viastate claims. Also please note that in our audit practicethat violations are equally as common by third-partypayroll services as with in-house staff.

The following checklist provides directions to clients todetermine whether a wage payment needs to be considered(included) when calculating overtime pay. Remember,overtime pay must be calculated on all wages earned, notjust the hourly rate. Thus, overtime must be also calculatedas noted below.

• Absences with Pay – Overtime need not be paid forhours not worked even though an employee is paid forsuch time, as for example absences due to vacations,holidays, illnesses, and time off to vote, and paymentsfor reporting for work when none is available.

• Apprentices/Trainees – Overtime must be paid toapprentices for training time if they are not workingunder a written agreement, if they do regular orproductive work.

• Board and Lodging – Overtime must be paid on thereasonable cost or fair value of board and lodgingfurnished by the employer if board and lodging are

not excluded from wages.

• Bonuses – Overtime must be paid on production andattendance bonuses which employees are entitled toas part of their weekly earnings.

• Call-Back or Call-Out Pay – Overtime need not bepaid on call-back or call-out pay that covers hours notworked.

• Changing Clothes – Overtime need not be paid fortime spent before and after work in changing clothesfor the employee’s convenience.

Overtime must be paid for time spent at the beginningor end of the workday if changing clothes is requiredby the employee’s duties or the employer’s rules.

• Civic and Charitable Work – Overtime must be paidfor charitable work if the employer directs or controlsit or if the employee is required to be on theemployer’s premises.

• Coffee and Snack Breaks (less than 30 minutes) –Overtime must be paid for time in coffee and snackbreaks.

4 W M DA N E W S | A P R I L 2 0 1 4

• Commissions on Sales – Overtime must be paid onsales commissions earned by nonexempt employees.

• Executive, Administrative, Professional, OutsideSales Employees – Overtime need not be paidexempt employees meeting the qualifications of theexemptions under the Act.

• Expense Accounts – Expense allowances areexcludable from computation of the regular rate.

• Fixed Wages for Fluctuating Hours – Overtime ofonly half-time (1/2), and not time and one-half (1-1/2),need be paid under employment contracts providing afixed weekly salary for variable hours worked.

• Hospitals/Nursing Home Organizations – Overtimemay be paid to hospital employees on a 14-day basis,rather than a 7-day workweek basis, if the employeeagrees to such an arrangement prior to performanceof his work and if overtime is paid for hours worked inexcess of 8 daily and in excess of 80 during the 14-dayperiod.

• Hours Worked – Overtime need not be paid for timespent on incidental activities before or after theworkday which are not an integral part of theemployee’s regular duties.

• Make-Ready Time – Overtime must be paid for make-ready activities, even though performed at thebeginning or the end of the workday, where they are apart of the employee’s principal duties, as, forexample, cleaning and oiling machinery and replacingparts; keeping tools in shape, distributing work toworkbenches, discussing work problems involved inshift changes, etc.

• Meal Periods – Overtime need not be paid for mealperiods during which an employee is relieved of allduties for at least one-half hour (30 minutes).

Overtime must be paid for meal periods if theemployee is not free of all duties, including inactiveduties or the lunch is less than 30 minutes.

• Medical Care – Overtime need not be paid on thecost to the employer of on-the-job medical carefurnished to his employees.

Overtime must be paid on time spent during workinghours in getting medical attention on plant premisesor at employer’s direction.

• Night Premiums – Overtime must be paid on nightshift differentials.

• On-Call Pay – Overtime must be paid to employeeswho are required to remain on call on their employer’spremises or at a fixed location.

• Out-of-Town Business Trips – Overtime need not bepaid on travel time of employees outside of theirregular working hours while out of town on overnightbusiness trips, except for time spent in performingregular duties.

Overtime must be paid on travel time during normalworking hours on nonworking days, as well as onregular working days, of employees on overnightbusiness trips.

• Production Bonuses – Overtime must be paid onproduction bonuses even though they areunascertainable at the time of the pay period in whichthey are earned.

• Show-Up or Call-In Pay – Overtime must be paid on apart of the show-up or call-in pay if the employees arerequired to wait 10 or 15 minutes before beingadvised that they may return home.

• Sleeping Time – Overtime need not be paid on upto eight hours’ sleeping time of employees who are

W M DA N E W S | A P R I L 2 0 1 4 5

on duty for 24 hours or more if there is an agreement tothis effect, if the employee is furnished adequate sleepingfacilities, and if the employee gets at least five hours’sleep.

• Training Programs – Overtime need not be paid to anemployee who voluntarily attends a lecture, meeting ortraining program outside his regular working hours if thelecture, meeting or program is not related to his job and if hedoes no productive work.

Overtime must be paid to an employee for time spent outsidehis regular hours on a course sponsored by his employer if thecourse is intended to make him more efficient in his presentjob.

• Travel Time – Overtime need not be paid on travel betweenan employee’s residence and his work place, in the usual case.

Overtime must be paid on travel from a meeting place at thebeginning of the day to the work site.

Overtime must be paid on travel between job sites during thework day.

• Truck Drivers – Overtime must be paid to truck drivers for timespent in sleeping berths while relief drivers operate the truck ifthe tour of duty is less than 24 hours.

Overtime must be paid to truck drivers for time spent inwaiting between specific tasks, unless they are relieved of allduties for a definite period which is long enough to be usedby them for personal reasons.

• Two Rates of Pay for One Employee – Overtime of anemployee who works for two or more different straight-timerates of pay during the same workweek may be computed onthe basis of his average hourly rate for the week or on the basisof the straight-time rate applicable during the overtime hoursif agreed to prior to performance of the overtime work.

• Unauthorized Overtime Work – Overtime must be paid forunauthorized overtime work which the employee is suffered orpermitted to perform, even though the employer hasannounced that no overtime work will be permitted unlessauthorized in advance.

• Wages – Overtime must be paid on the basis of all thingsof value forming part of an employee’s normal weeklyincome, such as salary, wages, piece work earnings, bonuses,commissions, and board or lodging not excluded fromwages.

• Waiver of Overtime Payments – Overtime payments requiredunder the FLSA may not be waived by employees. ◆

6 W M D A N E W S | A P R I L 2 0 1 4

We are finding that because most repair facility operatorsown their business, and because more and more servicestation dealers are buying their stations, death tax reform isbecoming a top WMDA legislative issue. In addition tofederal estate taxes, Maryland imposes both an estate taxand an inheritance tax. These taxes are among the highest inthe country and they have the potential to threaten thestatus your property or business if left to your descendants.

In 2014, 14 states plus the District of Columbia have estatetaxes in place. Like the federal estate tax, these state estatetaxes are based on the entire value of your estate in excessof the applicable exemption. Exemptions vary from a low of$675,000 to a high of $5.25 million. Five states have $1million exemptions (Maryland, Massachusetts, Minnesota,New York, Oregon, in addition to the District of Columbia).The lowest maximum state estate rate is Connecticut andMaine at 12% and the highest is Washington at 19%. All theother states including D.C. all charge a 16% maximum rate.

According to the Department of Legislative Services,Maryland imposes an estate tax of up to 16% above a $1million exemption, in addition to a 10% inheritance tax onevery dollar amount left to a niece, nephew, friend or partnerbut no inheritance tax on money that is left to children,grandchildren, parents or siblings. In addition, any estate taxowed is reduced by the inheritance tax paid. As in thefederal system, bequests to a spouse are tax-free. Certainexemptions/deductions may be taken when determining thevalue of a taxable estate, the most significant of which isproperty passing to a surviving spouse (marital deduction).The state has relied on these tax returns as total estate andinheritance tax revenues are estimated at approximately$227 million in fiscal 2014.

In an effort to reform the estate tax, the Maryland House ofDelegates recently passed HB 739. The bill passed in bi-partisan fashion in a 120-13 vote. The bill serves an essentialpurpose in estate tax reform as it would be responsible foraltering the size of an estate required to file an estate taxreturn; altering a certain limit on the unified credit used fordetermining the Maryland estate tax; repealing a certain

limit on the unified credit used for determining the Marylandestate tax for decedents dying after a certain date; altering acertain limitation on the amount of the Maryland estate tax;and making conforming changes relating to the estate tax.

Currently on the federal level, there is an estate tax exceptionfor the first $5.34 million of estates from the estate tax. InMaryland this exemption rate is set lower at the amount of $1million. HB 739 would gradually bring Maryland’s exemptionup to the federal exemption over four years.

WMDA testified in favor of HB 739 and believe that is has thepotential to help business owners reducing their tax burdenswhile bringing down the cost of estate tax planning. Thislegislation has the potential to keep high income earnersand businesses alike within the state of Maryland. Estate taxrepeal has the potential to make us more competitive as astate.

The goal of the legislation is to immediately raise the current$1 million tax exemption level in four annual increments. Thelegislation proposes an annual increase, beginning onJanuary 1, 2015, in amounts of $1.5 million, $2 million, $3million and $4 million before reaching the federal level byJanuary 1, 2019.

The bill is currently waiting to be heard by the SenateBudget and Taxation Committee. If passed by the Senate,the legislation will go before Governor Martin O’Malley. It isunclear whether he will veto the bill or sign it into law.

WMDA is also supporting and testified in favor of a similarestate tax reform bill titled HB 276. This bill relates directlyto qualified family owned businesses. It seeks to excludetheir interests from the Maryland estate tax. This billestablished a “family owned business” as one that at least50% of the entity is owned directly or indirectly by thedecedent and members of the decedent’s family; 70% of theentity is owned directly or indirectly by members of twofamilies; 90% of the entity is owned directly or indirectly by

by Roy Littlefield, IVWMDA Legislative Intern

O N T H E L E G I S L A T I V E F R O N T

ESTATE TAX REFORM PUSHES AHEAD IN MARYLAND

continued on page 7

W M D A N E W S | A P R I L 2 0 1 4 7

members of three families; or 30% of the entity is owned bythe decedent and members of the decedent’s family. If thislegislation were to pass it would then be the case where theMaryland estate tax shall be determined by excluding fromthe value of the gross estate up to $5,000,000 of the valueof qualified family-owned business interests of the decedentthat are acquired by or passed to any qualified recipient. Thelegislation draws similarities to HB 739 as both aim to lowerthe amount of Marylanders subject to burdensome estatetaxes while reducing rates across the board.

Estate tax reform and appeal remain a top priority forbusiness owners. Because states have handled this taxdifferently, the rates vary widely from state to state.Thankfully, the federal and state tax rates aren’t stacked on

top of each other; this is because state inheritance andestate taxes are subtracted from the value of the taxableestate in calculating the federal estate tax. Despite thesubtractions, you can wind up with some high combined taxrates when you account for federal and state estate taxesand state inheritance taxes. Effective in 2013 and beyond,the federal estate tax rate is a flat 40% on the estate taxvalue in excess of the applicable exemption which was $5. 25million in 2013 and now is $5.34 million in 2014.

When it comes to estate taxes it’s something to think aboutif you’re dedicated to leaving more to your heirs and less totax collectors. If you choose to retire in your current state, Isuggest meeting with an experienced estate planningadvisor so see if there are ways to reduce your exposure toestate, inheritance, and other death taxes. WMDA will staycommitted to reforming the estate tax in Maryland for ourcitizens and businesses alike. ◆

ESTATE TAX REFORM…continued from page 6

I have been asked to write an article on marketing (YUCK !).Let’s face it, we are all looking for the “magic pill,” one thingthat will bring in 100 customers a week. Customers that willfollow all your recommendations, purchase all the profitablerepairs and maintenance you like to sell – and mostimportant – your technicians like to do. Well I am sitting hereready to tell you it still hasn’t been found! But I would like totell you about a program that I was pushed into doing, eventhough I was very skeptical – that even my business partner(my wife Donna) said to me – “Have you lost your mind?” ButI went ahead and did it.

WOW CARDS! I amgoing to list what I did,the cost, and the contactsource – but first let melist in order the threepeople that told meabout it: Ken Quasney(Auto Sense), LewisSchnauble (SchnaubleAutomotive), and KevinMyers (my coach at ATI).

Okay so you get brave and decide to reach out toWOWCARDS.COM.

Making that decision was easy. Now you will talk with

support and get the info, decide on the offer, and arrange tosend your data. The rest is easy, all this can be done throughyour computer!

Okay – the first big deal here – the data is your existingcustomer mailing list. You will never get better results out ofanything you do, EVER, than marketing to the people whoknow you.

So let’s talk cost. I spent $345.00 and mailed to 410 clients.Out of those 410 clients, 58 came in. Total income notincluding tax: $25,657. Average dollars per RO: $442.36.Billed hours were 129.2. Shop supplies: $1,529.10. Gross onparts: 52.45%. Labor: 65.07%. The actual discounts oninvoices (not included in the $25,657 ) $2,500.

Now the offer was $50.00 off, no minimum! So if they camein for a $50.00 repair, it was free. We had one customer whoended up being free – so the 57 others spent money. You’resending this to people who know you, trust you, and you’resaying “we just want to thank you for being our customers.”

We were recommended to do $50. If you go over your list,drop out the low-ballers. I can give you more info on thephone if you have questions. At a time when we were slow,58 clients spending $25,657 was a great promo! ◆

Email: stephentbred6@aol.com or Phone: 301-317-7886

FROM THE CAR DESKby Stephen PowellThoroughbred Autocare, CAR Committee

8 W M DA N E W S | A P R I L 2 0 1 4

by Marta Gates-JonesDirector of Operations

A S I S E E I T

On Saturday, March, WMDA/CAR held their annual Trainingfor Techs and Execs at CCBC (Community College ofBaltimore County), Catonsville Campus. Training Day is aone-day event held annually, where for one low registrationfee, owners, managers and techs can spend the day learningand networking, and receive a continental breakfast andlunch.

After the continental breakfast, sponsored by PPC Lubricants/Castrol and MTD Services, attendees were off to theirvarious seminars. Classrooms were filled with technicians,managers and owners! The seminars offered on Training Daywere:

• Basic Electrical, sponsored by Brandywine Automotive Centers

• Maryland State Inspection Test Preparation,sponsored by Ferguson Corporation

• Ask The Owners, sponsored by First Merchant Services

• Preventative Maintenance, sponsored by Crovato BG Products

• Many Myths of Warped Rotors, sponsored by Parts Authority

• How to be a Great Conductor, sponsored by ATI

• Getting the Most From Your Service Provider,sponsored by ATI

• Tire Sales 101, sponsored by DANA Insurance & Risk Management

• TPMS Troubleshooting & Cloning, sponsored by DANA Insurance & Risk Management

During the lunch break, which was sponsored by Benjamin

F. Brown Insurance Agency, WMDA/CAR staff membersheld the drawing for the grand prize, sponsored by Snap-On Diagnostics for a free 14.2 upgrade on any Snap-Onscanner. The lucky winner was Doug Hillmuth of HillmuthCertified Automotive.

WMDA/CAR would like to thank the sponsors who helped tomake Training Day 2014 such a success, and the instructorswho so generously gave of their time – Kevin Rohlwing ofthe Tire Industry Association, Shane Brown of CentricBrakes, C.J. Frederick of ATI, the CAR Council including KenQuasney, Billy Hillmuth, and Stephen Powell, and CCBCInstructors Harold Babb and Bill Hemling. ◆

TRAINING DAY 2014

W M DA N E W S | A P R I L 2 0 1 4 9

1 0 W M D A N E W S | A P R I L 2 0 1 4

Once upon a time, there were two grades of motor oil –straight 30WT and 40WT. Then there were 10W30 and10W40. Let’s not forget the two types of transmission fluid,Dexron and Type F.

Today you have full synthetics motor oil in 0W20, 0W30,0W40, 5W20, 5W30 and 5W40, and coming in 2017, 0W16 fornew vehicles. You also have Synthetics Blend, High Mileageand Dexos1 – not to mention all of the grades that go withthat, as well as your conventional oil. As far as transmissionfluids go, each OEM manufacturer has its own kind.

SO WHEN WILL IT STOP?

Here are some questions I would like you to think about:

• Are you putting the right grade of oil in yourcustomers’ vehicles, or are you just selling what is inyour bulk tank?

• What percentage of vehicles in your shop has 75,000miles or more on the engines?

• Are you checking the dipstick to see if the vehicle isdown a quart or two? Or maybe there is no oil thereat all!

DID YOU KNOW?

Your average customer is keeping his or her car for about11.4 years, and over 60% have 75,000 miles or more on theirengines.

• 50% of customers with vehicles over 75,000 miles onthem will be willing to try High Mileage oil if presentedwith the opportunity.

• Many of today’s customers are still choosing premiumgasoline products even though…

- Only 7% of owners manuals actually requirepremium gas

- 17% of gasoline sold is premium grade (91 plusoctane)

- 22% of gasoline sold is mid grade (88-90 octane)

These are the customers you can talk to about high mileageoil for extra protection!

HIGH MILEAGE IS THE SECOND FASTEST GROWING CATEGORY!

Approximately 68% of US vehicles have over 75,000 miles onthem and the average vehicle is over 11.4 years old. Inaddition, 50% of the vehicles that enter your shops are highmileage. That is a 1 in 2 opportunity to INCREASE PROFIT$by selling CASTROL GTX HIGH MILEAGE!

SYNTHETICS ARE THE FASTEST GROWING CATEGORY!

Synthetics are the fastest growing and most profitable motoroil segment today. The synthetic segment is expected tonearly double by 2015, increasing from 7% to 12% of all PCO

REMEMBERING THE “GOOD OLDS” WHEN MOTOR OIL WAS SIMPLEby Gene NacePPC Lubricants

W M D A N E W S | A P R I L 2 0 1 4 1 1

volume. Two factors are helping to drive this growth:

• First, more OEMs are recommending synthetic oils fornewer cars.

• Second, discerning customers are seeking installerswho provide high quality synthetic oil to meet theneeds of their vehicles.

WHY SYNTHETICS?

OEM recommendations:

• Engines operating at higher pressures

• Lower viscosities for fuel economy

• Longer drain intervals

Regulatory changes:

• Café requirements increase to 35MPG in the US by2017 model year

• ILSAC GF-6 will lead to even lower viscosity grades

So for the service dealers of today, it has become tougherto find room in the shops for the motor oil and transmissionfluids that are called for in cars today. You will soon need awarehouse of your own to stock all of the motor andtransmission oils that you need for servicing yourcustomers’ cars.

PPC Lubricants and Castrol have a solution for that! Checkout the preferred oil program, offering 6-gallon Epacks of oiland Eracks to hold them. You would be able to stock sixgrades of oil in the space it requires to store a 55-gallondrum! Call us today to discuss!

Here are some other benefits of Epacks and Eracks:

• Grows your profits with Epacks that offer a lower coststructure vs. quarts

• Increases inventory turns

• Improves inventory management

• Ability to meet customer demand

• Innovative 6-gallon offering that has environmentallyfriendly/environmentally sustainable packaging

• Box folds for easy recycling

• Bag and spout can be discarded with almost noresidual product left in the bag, as opposed to quartbottles

• Saves two to three minutes per oil change vs. quartbottles

• Gives a “bulk” feel without inventory or drums

• Highly visible, attractive display adds quality assuranceto premium oil changes

• 3 shelves hold 2 Epacks per shelf, 1 shelf for additionalinventory

• 3 branded dispensing pitchers, 1 Castrol sign and 1containment pan

CASTROL PROMOTIONS

As a Castrol partner, you will have the opportunity to runConsumer Incentives and Consumer Promotions designedto:

• Help attract new costumers to your repair facility

• Improve customer satisfaction and retention

Today we have many grades of oil, and in the next 3-5 years,we will be seeing a lot of full Synthetic Oils in the car enginesof tomorrow.

Give me a call at PPC Lubricants and see how we can saveyou hundreds – if not thousands – of dollars on your oilpurchases!

We are very proud of being a WMDA/CAR preferred oilsupplier, and we will work hard to service WMDA/CARMembers! ◆

For more information, contact:Gene NacePPC LubricantsKey Account Manager1-717-215-7253gnace@ppclubricants.comA PASSION FOR SERVICE, POWER OF SOLUTIONS

1 2 W M DA N E W S | A P R I L 2 0 1 4

With about three weeks left in Maryland’s legislative session,I will wait until after the close of session in April to give youa tally of the Good, the Bad and the Ugly.

I have been very fortunate to have Roy Littlefield here in theoffice as guidance, and the help of his son Roy (RL4) while heis studying for his master’s degree. I have also had the helpof a small retail group that meets in Annapolis every monththat has most of the same goals as WMDA/CAR, and ofcourse Mel Sherbert, Board Member and Chairman of theGovernment Affairs Committee.

Our businesses are very much the same, with challenges toovercome every day. Our stations with bays and repairfacilities constantly have to upgrade training and technicalskills to repair vehicles and improve marketing tools to getthe vehicles in the bays and be competitive.

Our convenience stores and bayed stations face declininggas sales as consumption will drop 24% by 2040. Increasedcompetition from box stores that will have conveniencestores attached (Wal-Mart opened a test site in Bentonville,Arkansas) will challenge the best.

LET WMDA AND CAR HELP YOU

Let WMDA and CAR help you overcomethese challenges. Your membership putsyou in a group with the same challenges youface. Your membership gives you benefits ofa buying group; the benefits of meeting likemembers with like problems that just maybehave an answer; the benefits of maybeknowing someone that could help you. Youhave a voluntary Board of Directors (22)made up of fellow business owners and aCAR committee that is dedicated to therepair facilities. Their one and only goal is tohelp members be the best they can be.

We are here to help you, and I would likeyou to help your association by getting one

new member this year, just one, and if you need help call theoffice and we can send a membership person out to help.Lets make this year the POWER OF ONE and double up onour help factor.

NEW PREFERRED TIRE VENDOR

American Tire Distributors (ATD)has come on board as ourpreferred provider for our tireselling members. ATD is thelargest tire wholesaler in the

country and carries a full line of wheels. Our members willget pricing based on the entire WMDA/CAR membership.

You will have to open an account by contacting the accountmanager listed in your area and he will set you up forpurchasing and give you the details. This is open tomembers only and will be part of your member benefitpackage.

ADT has over a hundred distribution centers across thecountry. The tire business will be heating up with pot holesgalore and spring driving season approaching. I have listedthe account managers below along with the area they coverand their email address.

• Ken Sherman – Outside Account Manager covering:Anne Arundel, Washington, Frederick & HowardCounties of MD, Adams, Cumberland & FranklinCounties of PA (KSherman@ATD-US.com)

• Dave Schoennagel – Outside Account Managercovering: Baltimore, Baltimore City, Harford, Carroll &Cecil Counties of MD, also York, Lancaster, Dauphin,Lebanon & Southern Chester Counties of PA(DSchoennagel@ATD-US.com)

• Scott Bell – Outside Account Manager covering:Prince Georges, Montgomery, Saint Mary’s, Calvert &Charles Counties of MD plus the District of Columbia(Sbell@atd-us.com) ◆

by Kirk McCauleyDirector of Member Relations

K I R K ’ S K O R N E R

HELP AND THE POWER OF ONE

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