Shop Owner, 11/12.2012

November/December 2012

Brand Building Succession Planning Case Study Web University, Part 2

Bill’s QualityAuto Care

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6 Web University, Part 2:-Your Web QuestionsGet Answered

18 Brand Building:-Improving Customer Satisfaction

36 Buying & Selling An Aftermarket Business:-Succession Planning Case Study

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November/December 2012

Departments

14 Executive Interview: Christian Brandt, ACDelco

24 Shop Management: Transparency in Pricing

50 Sales & Marketing: Leveraging Car Care Events

Shop Owner Staff

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Go DeepQ: What is the difference

between AdWords and AdWords Express?

A: Google is perfecting its toolsuite to post ads almost everymonth. What goes along withthat is the complexity of hun-dreds of settings, and most smallbusiness owners struggle to findthe correct configuration fortheir needs. Google has intro-duced AdWords Express tomake it easier to set up Ad-Words campaigns. Here is a listof advantages and disadvantagesof both types of Pay Per Click(PPC) advertising.

Setup – AdWords With a long and complex list of settings, AdWords experts makesure that every thinkable aspectof your ad campaign is set cor-rectly. A fully thought-out cam-paign can take an hour or twoto set up, and that’s if youknow exactly what you wantand all the tests for effectivenesshave already been done.

AdWords’ biggest advantageis the ability to configure keywords of your campaign.

Setup – AdWordsExpressWith AdWords Express, you select the category you want to


Part 2

|Web|University

And here we are again. With all the Google changes, smallbusinesses are scrambling to avoid being relegated to the Internet’sjunk bin. Let’s stay on top of it. Whether it’s Google search, socialmedia or what to do with Google+, you’ll find answers to the mostchallenging questions, in both a “Go Deep” and “Quick Bites”format. Questions submitted by shop owners atwww.ShopOwnerMag.com will be answered by Uwe Kleinschmidt,CEO of AutoVitals, a leading supplier of web-based marketing andservice advisor productivity tools.

promote (for example, brake repair),type in a description of your business,set your budget and off you go. Youcan be set up within 10 minutes.

One downside to AdWords Expressis you can’t pick your own key words;Google does this for us, based on itsresearch of what groups of key wordsbest represent the category. So don’tbe surprised if “car service” gets youhits for “limo service,” as Googlethinks they are synonyms.

Appearance – AdWordsThere is a significant variety of waysto configure your ad’s appearance onSearch and on Google Maps, for example, phone number, location,etc. AdWords, however, has no abilityto let Google reviews shine.

Appearance – AdWordsExpressThe biggest benefit of AdWords Express is the way ads appear, especially after Google turned the 5-star rating of Google reviews into ascore. The human eye immediatelydetects the 5-star rating and checks itout. The score seems hidden andcomplicated by comparison.

Quick BitesQ: Why do reviews disappear on

Google?A: Google does regular housekeep-

ing campaigns and cleans out suspi-cious reviews. Suspicious because oneGmail account created too many reviews, suspicious because one IPaddress logged into too many Gmailaccounts, etc. Unfortunately, moreoften than not, genuine reviews getdeleted, while some reappear andsome don’t. There is nothing you cando about it, other than be genuineand do not game the system.

Q: What is Reverse Proxy?A: Many small business

owners like to track thephone traffic to theirshop or store. SinceGoogle punishes trackingphone numbers on web-sites by giving them alow ranking, only PPCcampaigns can be usedto add a tracking phone

number on a website different fromthe one found by the Google crawler.In order to avoid duplicate content,which is another reason for a Googleranking decrease, but still be able toadd another phone number, a tech-nique called Reverse Proxy is used.All hits from the PPC campaign stillgo to the original site and the Googlecrawler is told to ignore the shadowedcopy. Copyright issues still arise andneed to be discussed with your webdesigner, since technically it is a100% copy of the original website.

Q: I want to place a video on thehome page of my website. How longshould the video be?

A: Our research indicates that plac-ing videos of any length on the home-page is not ideal. Think about it: visi-tors typically take 15 seconds to get afirst impression of your business onthe home page before they decide to

www.ShopOwnerMag.com November|December 2012 |Shop Owner|9

Visit www.ShopOwnerMag.com to Submit Your Questions

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explore the site further. The time avail-able to watch the video is simply tooshort, and our research indicates thatclick rates are less than 2% for videoson the home page and, thus, wasteprecious real-estate.

Q: Mobile applications are highlyadvertised by many suppliers to theauto repair industry. Why are theyimportant? I have more than 50 appson my iPhone. Why would anybodyremember an auto repair app and tap

it three months after installation?A: Good point. App providers want

to be on as many phones as possible,but to make a difference, the contentneeds to be interesting and have repeatvalue. A good way to remind the mo-torist about your app is via push notifi-cations (the pop up boxes on youriPhone) about promotions, service reminders and the like. Check out ourmobile app blog.autovitals.com/going-mobile- are-you-in/ to see what I mean.


Q:Myserviceadvisor isnot collectingenough e-mailaddresses. Isn’tbuying e-mailaddresses thatmatch my cus-tomer databasethe best way tobuild up e-mail addresses?

A: At first sight, buying e-mail addresses is a convenient way ofbuilding up your list. The question is,how much are those worth? Every oneof us hates to see e-mails flooding ourinbox, especially those that are unex-pected or that make us wonder, howthe heck did the sender get theirhands on my e-mail address?

In other words, buying e-mail addresses violates the ground rule ofpermission-based marketing, which is— getting the permission. In our owntests with buying e-mail addresses andlooking at e-mail stats from clientswho converted from other vendorsthat offered e-mail buying services,the verdict is clear: Bounce rates (in-valid e-mail addresses) sky rocket andopening rates (does the recipient careabout your message?) plummet.

Look at it this way: you are a localbusiness providing local services to

localcustomers.This is sustain-able only by main-taining a trusted relation-ship. Buying e-mail addresses is liketrying to buy a trustedrelationship. You bethe judge on whetherthat is possible. SO


Uwe Kleinschmidt is the CEOand founder of AutoVitals inSanta Barbara, CA. The compa-ny’s Web-based services focuson the independent automotiverepair industry. AutoVitals’ prod-ucts facilitate highly effective Concierge Auto Repair services, covering all aspects of the service advisor’s interaction with prospective and existing customers. Highlyeffective and optimized websites, workflow support in theshop, as well as customer retention and social media services are just a few ingredients. He can be reached by visiting blog.AutoVitals.com or calling 1-866-949-2848.

ACDelco revamped its service center affiliation program this year; can you tellme about it?

We all know successful shopowners understand their busi-ness is as much about peopleas it is cars. Likewise, the

ACDelco boxcontains morethan a part: It offers more thana century of af-termarket busi-ness expertise.

Our shopowners give ushigh marks onour products,and they alsowant smart sup-port that helpsthem drive busi-ness growth andefficiency. The

ACDelco Professional ServiceCenter Program helps us deliverthe business support tools ourshop owners are asking for. Inaddition to high-quality, com-petitively priced parts, it pro-

vides industry-leading techni-cian training and tracking tools;marketing support; easy and at-tractive purchase incentives; andexpanded consumer assurance.

Nearly every member of ourformer Total Service Supportprogram signed up for the Pro-fessional Service Center Pro-gram this year. In an industrybuilt upon the cornerstones ofmutual success and trust, itdemonstrates our shop ownercustomers believe we’re provid-ing value both in the bay andto the bottom line.

Next year, we are going toleverage the success of theProfessional Service CenterProgram as we explore addi-tional ways to talk to our cur-rent customers and bring newones into the ACDelco family. Iam pretty confident our cus-tomers are going to like whatwe have planned.

Can you provide some examples of ways ACDelco issupporting shop owners?

Absolutely. For starters, we’re

14 |Shop Owner|November|December 2012

Executive|Interview|

Christian J. BrandtNational Marketing Manager, ACDelco

ACDelco National Marketing Manager Chris Brandt is an automotiveaftermarket industry veteran. He joined ACDelco in 1984 and hasserved in a variety of roles, including Product Development, Channel Strategy, Supply Chain, Operations and Marketing.

using technology to get customers inthe doors with the locator tool on ourACDelco.com website. Consumerstype in their ZIP code for a list of near-by shops and driving directions. Click-ing an information icon takes them toa landing page with the shop’s history,hours and services performed.

As more and morebusiness transitionsto online and mo-bile, we’re also usingWeb national andlocal search tools todrive customers tothe ACDelco homepage, parts page orshop locator, and directly to our Pro-fessional Service Center program par-ticipants. We’re doing this with both anational ACDelco branded search andlocator, as well as locally targetedkeyword campaigns that use unbrand-ed service terms.

Once we provide those businessleads, the Professional Service Centershop owner has a full circle of servic-es at his or her disposal, includingtwo new customer-friendly programs.This year, we added same-day laborreimbursement to our White andBlue-level shops. That’s huge.

Also new this year is our RoadsideAssistance service that covers eligibleservices performed at an ACDelcoProfessional Service Center. Towing,fuel delivery, lockout, jump start andflat tires are included.

Additionally, we continue to coverACDelco parts for 12,000 miles or 12months.

And speaking of parts, we simplifiedour promotions and incentive pro-grams to add flexibility and to stream-line the redemption process. We’realso making it easier for shop owners

to buy and install ACDelco batteriesin two ways: One, with Battery Marketer Program trucks that provideconsigned inventory, service andpoint-of-sale materials; and two, withour recent decision to replace pro-ratabattery warranties with free-replace-ment warranty periods.

We also work withdistributors to assistshops with profes-sionally developedsignage and otherstore image enhance-ment because youget only one chanceto make a first

impression. Building graphics, curbappeal elements such awnings, point-of-sale materials and other items con-vey a sense of sophistication whilestill preserving local flavor.

Ongoing technician training is absolutely necessary yet hard toschedule. So we help our shop own-ers by making it easy to keep theirtechnicians trained on the latest vehi-cle repair technologies without costlytime away from bay.

Just as vehicle repair techniqueschange, so do customer demographics.Women now make or influence 85percent of all consumer purchases, sowe developed an award-winning semi-nar to help them feel more empow-ered about car maintenance and repair.

Called Knowledge is Power, it givesthe shop owner everything he or sheneeds to deliver a car care seminar toan audience of women, whom weknow are among the most effectiveambassadors a shop can have. Manyof our shop owners are seeing newcustomers come through the door aftersponsoring a Knowledge is Powerseminar, and we’re making sure that


this professionally-developed programalways reflects the most up-to-date industry maintenance information.

How is the ACDelco Advantage lineperforming, and what other news canyou share on the product front?

ACDelco Advantage products havebeen a critical and commercial suc-cess for us, and together with our Professional and GM OE lines, give usa terrific good-better-best product line-up for our customers. This year welaunched an all-new line of Advantage chassis components andAdvantage batteries.

For many shopowners, the aging ve-hicle fleet is a dou-ble-edged sword:Their customers’ carsand trucks needwork, but budgetsare tight. That putsthe shop owner in abind. If he installscheap, no-brandparts and they fail, he risks his reputa-tion and an expensive comeback.

With Advantage, our shop ownercustomers don’t have to make thatchoice. The price is competitive andthe quality is high. Everything neededfor the installation is in the box,which saves time. And, consumers

who visit a Professional Service Cen-ter Program participant get a safe,quality part backed by a solid warran-ty and well worth the money theypaid to have it installed.

Since introducing the Advantage linein 2009 with brake rotors and drums,we’ve added a friction lineup and hun-dreds of part numbers. We’re seeingyear-over-year growth for Advantagewith no effects on our other lines.

Our Professional line of high-qualityaftermarket products covers not onlyGM but multiple makes and models.Major lines include batteries, filters,

plugs, brakes, chassis,rotating electrical,water pumps, belts,hoses and more. Ourall-new Professionalstarters and alterna-tors recently went onsale and we’re gettingpositive feedbackfrom both our distributors and shopowners.

Of course, our heritage and strengthlie in our longstanding role as thebrand of OE parts for the world’s largestcar parc – GM cars and trucks. We cur-rently offer GM OE parts available bothto distributors and through the GMdealer network. They’re backed by theengineering excellence of GM, whichis something our competitors can’t say.

I mentioned earlier that we phasedout pro-rated warranties on our bat-teries. While our battery coveragehas always been among the best inthe business, our distributors andshop owners told us they wanted atransparent, easy-to-understand war-ranty that removes the hassle andguesswork associated with pro-ratedcoverage. SO


The professional image that ashop displays often makes thecrucial difference between anordinary experience and onethat encourages repeat busi-ness. Through a complete pro-gram that enhances the imageof customer areas, personneland service bays, independentrepair shop owners can improve customer satisfaction— and boost profitability.

Take Stock of the ShopPrior to determining specificimage improvements, ownersand operators should assesstheir current cleaning policiesand procedures, and conductan inventory of personnel andequipment. By first determiningthe current status of the facility,owners can develop specificstrategies that will help to im-prove professional image andcleanliness throughout the shop.


Brand|Building|

What Image Does YourBusiness Project?Tactics To Improve Customer Satisfaction

There are more than 175,000 automotive repair shops in the U.S., sohow can shop owners differentiate themselves and stand out fromthe competition? While having the most up-to-date technology andtalked-about customer service is always beneficial, sometimes amore simple solution can help to improve the customer experienceand your shop’s bottom line.

by Dave Mesko, senior director of marketing, Cintas Corporation

To ensure employee uclean and free of grimlaundry service providpick-up and drop-off t

To ensure employee unclean and free of grimlaundry service providepick-up and drop-off t

Following the assessment, considerimplementing the following image im-provements:

• Develop customer area cleaningprograms. The waiting area is the firstopportunity to create a positive impres-sion among customers. Keep this spacein pristine condition to project the bestpossible image. Ensure that chairs, ta-bles and refreshment stations are keptclean and free of debris and trash.

To improve overall cleanliness andimage, sanitize and disinfect hard surfaces daily to remove debris andbacteria. In addition, develop a trashremoval schedule to eliminate odor-causing waste that accumulatesthroughout the day. Schedule dailyfloor cleanings to ensure these areasalso stay free of any debris or liquids.

Keep a continuous supply of cof-fee, tea, soft drinks and snacks to ac-commodate varying customer prefer-ences in refreshment areas. Sincerefreshments are typically self-service,spot-check this area frequently to en-sure items are stocked and clean itonce every few hours to removespills and trash.

Additionally, ensure that guests aregreeted with a sanitized, well-stockedand odor-free restroom. Make surerestrooms are regularly stocked withsoap, paper towels and toilet paper tokeep restroom users satisfied. To com-bat unpleasant odors in customer rest-rooms, use time-released air freshen-

ers. Assign someone to regularlycheck on restroom conditions and re-stock essential supplies.

By creating a pleasant experience inwaiting areas and restrooms, cus-tomers will feel inclined to return forfuture services.

• Ensure personnel look theirbest. Frequently, shop owners willoverlook the importance that a profes-sional-looking technician has on theoverall customer experience. As em-ployees serve as a vital point-of-con-tact in the shop, they offer a criticalopportunity to impress customers. Additionally, the image of employeessends a message to customers aboutthe level of service and care their vehicles will receive.

To help employees look their best,provide access to a freshly laundereduniform prior to each shift. Choose auniform style that promotes the shop’sbrand with customized logos, colorschemes and styles.

Before implementing a uniform pro-gram, ask for employee feedback onfabrics and styles they feel are mostcomfortable and functional. For exam-ple, cargo pants help busy techniciansby providing added storage for toolsand small parts. Jackets and vests areuseful for cold winter months and cancomplete the entire image program.To ensure employee uniforms are always clean and free of grime, part-ner with a laundry service provider toschedule convenient pick-up anddrop-off times for uniforms.

Additionally, hand-washing stationslocated throughout the service areashelp ensure employees always greetcustomers with clean hands. Stock thehand-washing stations with heavy-duty soaps to cut tough grease andoil. Employees appreciate manage-


niforms are always me, partner with a

er to schedule convenienttimes for uniforms.

niforms are always me, partner with a

er to schedule convenienttimes for uniforms.

ment’s dedication to their personalimage and feel more confident whenthey look their best.

• Organize and clean serviceareas. As technicians sometimesbring customers into service bays todiscuss their vehicle, these areasshould always remain in top condi-tion. Keep tools and parts organizedby providing appropriate shelving andstorage units.

To eliminate the accumulation ofdirty parts, provide a mobile partswasher to help clean parts efficientlyand safely, while also enhancing theimage of the service area. Choose aparts washer that uses a non-toxic,pH-neutral, aqueous solution to safe-ly remove grease and oils frombrakes, suspension components andsteering parts. These units help elimi-nate the need for toxic aerosol partscleaners and improve indoor airquality throughout the shop.


Use cleaning equipment with agitationtools to effectively remove grease and lubricants from shop flooring.

Stock thehand-washingstations withheavy-duty

soaps to cuttough grease

and oil.

Additionally, the cleanliness of floor-ing throughout the service area is oneof the most critical factors that can influence customer perception of theshop. Develop daily floor cleaningprotocols that can easilybe performed duringslow periods tomaintain floor-ing throughoutservice areas.Use cleaningequipment withagitation tools toeffectively removegrease and lubricants from shop flooring.

Maintaincleanliness byimplementing amatting system toabsorb and con-tain slippery liq-uids and grease.Place matting inwalkways locatedfrom the serviceareas to customerwaiting rooms toprevent the track-ing of slipperyliquids and debrisindoors. Mattingalso helps to pre-vent slip-and-fallaccidents for employees and

guests, which can weigh heavily onboth the shop’s professional imageand reputation.

• Train employees. Ensure that employees are properly trained onpolicies and understand the impor-tance of the shop’s image. Enhancingthe shop’s professional image is agroup effort, and all employees must

be on board to guarantee the program’s success.

Provide training sessions to educateemployees onhow to usenew equip-ment correct-ly and safely.Trainingprovided by

equipmentsuppliers is beneficial,

since they are professionallytrained in the proper usage and safetymeasures associated with their equip-ment. By clearly communicating spe-cific ways that employees can con-tribute to the program, shop ownerswill ensure their facility’s image iscontinuously improved.

Frequently, shop owners and personnel can feel overwhelmed byday-to-day business responsibilities. Ifthis is the case, consider partneringwith a service provider to help facili-tate a training program and guaranteeits success.

While developing a professionalimage throughout your facility can bean investment in terms of time and resources, its benefits will be wellworth the effort. It will impress cus-tomers, differentiate your shop fromthe competition, and lead to highercustomer satisfaction scores; all ofwhich translate to repeat business andimproved revenue. SO


Dave Mesko is senior director ofmarketing for Cintas with more than16 years of industry experience.Cintas Facility Services offers awide range of solutions that enablebusinesses to build their image and increase profitability and productivity. For more information, visit www.cintas.com/FacilityServices.

The service advisor would thenpage through a catalog, find theprice and then share thatprice with the customer.

As we all know, timeshave changed, and afterdecades of confidentialityin pricing, technology hasnow done more than justchange how we diagnoseand fix automobiles; it’s actu-ally made pricing transparent.The days of holding yourprices close to your vest arenot only gone, but if you con-tinue to follow that age-oldpolicy, you’ll more than likelystruggle in the coming years.

As we all know, the Web hasdramatically changed how youoperate your business. It’schanged how you market, howyou communicate with yourcustomers, how you order parts,and how you diagnose and fixvehicles. Yet the one thing mostrepair shop owners are reluctantto accept is that, unlike in the

past,pricing onevery conceivablerepair and service isnow available within momentsonline. Now we all know thatthose prices found online can beas incorrect as often as they arecorrect, but the reality is this: aswe move forward, more peopleare going to be turning to theWeb, not just for finding theright repair facility, but for arange in pricing, as well. It’s cur-rently happening in every otherindustry, so there is no reason to


Shop|Management|

Transparency inPricingIt’s Now a Mandate, Not an Option

There was a time in our industry when shop owners were the onlyones who knew the cost of their parts. Additionally, the amount theycharged for their repairs and services was typically not publicknowledge. If customers wanted to know how much it would cost toperform a specific repair, they had limited options; they would haveto either call for an estimate, or visit a repair facility.

by Bob Cooper, president, Elite Worldwide, Inc.


believe that it won’t become even morecommonplace in our industry as well.Here are the things I encourage you toconsider.

First of all, you should accept thefact that an increasing number of yourfirst-time visitors will have either already searched the Web for a rangein pricing, or they will do so withinminutes after you provide them withan estimate. In many cases, they willdo their price comparisons with theirsmartphones, and they’ll do it whilethey are still at your facility.

This brings me to the second pointthat I hope you consider,

which I refer to as integri-ty in pricing. With theease of access that consumers now haveto pricing information,

in the coming years thetop shops will be com-

petitive in pricing, andthey will be proud of the

value they deliver.Now before I go any fur-

ther, I’m not suggesting that ashop can’t charge more than its

competitors do, but if the pricesthey charge are viewed as out of

line with other well-run facilities,there is no question: they’ll lose theircustomers, and their reputation, at thesame time. The proof is evident inevery other industry, because historyhas shown us that no matter how goodthe hotel, airline or restaurant may be,if their customers don’t feel that thepricing is comparable to similar service

providers, those companies never survive.

So, here are my recommendationsfor those of you who want to growmore profitable, successful businessesin the coming years. You should startdoing what your potential customersare already doing, and survey your le-gitimate competitors. I’m referring tofacilities that offer services and benefitsthat are comparable to yours.

Secondly, ensure you are competitivewith your prices. This doesn’t meanyou can’t charge more, but you have

to be comparable, and you have to believe in the value delivered.

Finally, I am not suggesting that youshould quickly provide a price to everyprice shopper, or that you should pro-vide a price before you have built valuein the service. What I am suggesting isthat you need to embrace the fact thatyour customers are no different thanyou and me. They have access to pric-ing info 24 hours a day, 7 days a week,and they not only expect transparency,but they demand it. There is no ques-tion: transparency inpricing is now a man-date, not an option,for every shop owner,worldwide. SO

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

Customers have access to pricing info 24 hoursa day, 7 days a week, and they not only expecttransparency, but they demand it.

“I have people who work with me, not forme, in business. They have that ownership

mentality and they know if the businessdoes well, they’re also going to do well.”

-Bill Garcia, owner

Bill’s Quality Auto Care Owner Bill Garcia was “green” before greenwas even popular. When he opened his shop in Simi Valley, CA, 19years ago, it was a given that he would promote best practices suchas recycling waste oil and metals. And he and his staff are alwaysworking to make the shop as energy efficient as possible.

“Ever since I was a kid and Iused to tag along with my unclein his little garage in the back,he always taught me that throw-ing things away, especiallymetal, was a shame,” Bill explains. “He said people throwaway too much in this country.He spent time in Europe andhad been in Vietnam, so he hadthe chance to see other cultures’(values) and he brought themback. He said those people useas much as possible, and wejust waste so much.

“So he taught me early onnot to throw away metal, soeven before the green move-ment, I never threw awaymetal,” he continues. “I wouldkeep it in a barrel and someonewould collect it. It just droveme nuts that there was going tobe a water pump in some land-fill forever. And that was beforeit was cool to do.”

In addition to metal, paperproducts, tire waste, and bottlesand cans are all recycled. Large

bay doors are kept open toallow enough light in withoutusing overhead lighting, and efficient T12 fluorescent lightingis used throughout the shopand offices. A high-efficiencyair compressor provides air toall of the shop’s tools, and theshop’s computers utilize power-saving features and flat-panelmonitors that use significantlyless electricity.

“We have invested heavily inquality equipment that capturesfluids from all of the fluid flush-es performed on vehicles,” Billsays. “Coolant/antifreeze, trans-mission fluid, brake fluid andair conditioner refrigerant chem-icals are cared for with high regard. The equipment we uti-lize is made to minimize andeliminate the chemical effectson our environment.

“Our service facility is takingmany steps forward in helpingkeep our environment clean;it’s important for future genera-tions, and it starts with us.”

Shop|Profile|

Bill’s Quality Auto CareLives Up To Its Name and Keeps Customers Coming Back For 19 Years


by Debbie Briggs, contributing writer

Marketing and CustomerPerksJust as Bill’s Quality Auto Care isknown among its customers as beingenvironmentally conscious, clients alsoknow to bring their sweet tooth whenthey pick up their vehicle after service.

“One thing that we’ve had for yearsand years is our Hershey bar pro-gram,” Bill says. “Whenever a cus-tomer finishes a transaction at ourshop, they receive a chocolate bar (or

a diabetic alternative) with a $5 offcoupon attached to it, and they haveno limitations. We had one customerbring in 17 of them one time, and sheasked if she could use them all. I said,absolutely! They’re just like money.That’s been a basic, but nice, thankyou. That will be with us forever —unless chocolate gets outlawed.”

Marketing to current as well as newcustomers has always been a specialtyat Bill’s Quality Auto Care. Current


With 12 bays, Bill’s Quality Auto Care offers a full range of services for domestic, European andAsian makes, as well as light truck diesel. All of the work performed at the shop carries a minimum two-year/24-month parts and labor warranty.

“Our service facility is taking many steps forward in helping keep our

environment clean; it’s important for future generations, and it starts with us.”

customers have come to expect Bill’sSeasonal Specials mailer, which cov-ers most major inspections at $69.99,with a discount when scheduling on-line. Kelli Garcia runs the shop’s Face-book page, which keeps “friends”coming back to see her latest recipesand interesting family information.When a customer becomes a friendon Facebook, they also qualify for freewiper blades on their next visit.

Bill says the shop’s website,www.billsqualityautocare.com, hasbeen instrumental in communicatingwith new and current customers, anda mobile version has been a hit aswell. Just as the site has changedlooks many times over the years, theinformation within the site has alsogrown in scope and quality.

“We link to our Facebook page,allow for online appointments, estab-lished a QR code for contacts, a linkto AutoNet TV information and have

recently started an online blog,” Billexplains. “We’ve also optimized a mobile website that was designed forpeople on the go. It’s designed withbuttons just like an app: Call us, AboutUs, Hours, Contact Us. It’s been verywell received. This came about be-cause people tried to find us, and theytold us that they really just wanted aphone number. They want to knowhow to get here, they want to call you;they just want some basic things.

“We feel our website presence hasbeen a key reason for our continuedsuccess and shop growth, and willcontinue to provide the best possiblecontent to our customers.”

Employee-Centric FocusBill also focuses on employees andsays a business is only as good as itspeople. To that end, technicians andservice writers are given access to


From left: Alex Foreman, service advisor; Joe Shaw, ASE-certified service advisor; Bob Cornwall, operations manager/fleet manager.

Don Horton: ASE Master Technician, CA smogcertified, with 27 years of experience.

Adam O’Connell: ASE Master Technician,CA smog certified, with 13 years of experience.

Johnnie Ornalles: ASE Master Technician,CA smog certified, with nine years of experience.

Scott Hodges, technician trainee

Steve Blazey, ASE Master Technician,with 30 years of experience.

Kyle Garcia, utility person and shuttlebus driver

more than 100 hours of training eachyear. Offered at no charge to them,technicians receive specialized train-ing from several of the shop’s suppli-ers, both onsite and off. Service writ-ers have also received training fromElite Worldwide, Inc.; two have gonethrough the Master’s Program established by Bob Cooper.

“Our budget for training very oftenexceeds 3% of our GP; in fact, it goesas high as 5%,” Bill says. “But I’ll tellyou what, it pays back, especially ifyou’re careful about what kind oftraining you send everyone to — andI’m talking about everyone, including

myself, service advisors and techni-cians. That’s part of my job to look ateach guy’s file and history and seewhat training he’s had lately, and whathe needs a refresher on. I spend a lotof time on that.”

Training isn’t the only benefit foremployees; they can also take advan-tage of a 401k program, health carebenefits, profit sharing, Costco mem-bership, uniforms, paid vacations,paid ASE testing and bonus programs.Bill credits his 15-year associationwith Bob Cooper and Elite Worldwidewith changing the way he does busi-ness, saying that he taught him “a lotabout putting people first.”

“I don’t want my employees comingto work and wondering how they’regoing to pay the bills, or how they’regoing to send their kids to school,” heexplains. “That’s a real problem nowa-days. I uphold my end by providingthe training and the means to make agood living, and what I expect in return is a good attitude.”

Formula For SuccessSuccess, Bill says, all starts with theright people, and proper training, procedures and equipment.

“A lot of people don’t consider theirstaff as much as they should,” he says.“I have people who work with me,not for me, in business. They careabout the lights being left on, theycare about that piece of equipmentbeing abused or not. They have thatownership mentality and they know ifthe business does well, they’re alsogoing to do well.”

Given the longevity of this Califor-nia shop, Bill Garcia just might beonto something: Success and motivat-ed employees go hand in hand. SO


Jim, an ASE-certified techni-cian, and his wife, Kimberly,owned and operated theseven-bay auto service busi-ness since 1980. The businesswas founded by his father in1969, with Jim growing up inthe automotive service industryand eventually becoming theco-owner with his brother ofthe independent center untilhe bought out his brother’sshare in 2000.

“The journey we took fromdeciding to sell, to listing thebusiness with a broker, to find-ing a buyer, to dealing with thefinancing requirements of thebank, to actually closing thedeal was an emotional roller-coaster for us,” noted Jim. “Allof those things occurred withina six- to eight-month time-frame, but I was talking tobusiness brokers about selling


Buying & Selling|An Aftermarket Business

Selling an IndependentAuto Service BusinessAn ‘Emotional Rollercoaster’ for Both the Buyer andthe Seller

“Am I supposed to just keep working until I drop dead?” is aquestion many Baby Boomer generation business owners may askthemselves sooner or later. Jim Hermansader, a veteran of theautomotive service industry who had spent 43 years, since he was18 years old and fresh out of high school, in a family-ownedbusiness, had to ask the question out loud when he received somepushback from those who challenged his decision that it was timefor his business to change hands.

by Art Blumenthal, MBA CBI

The Sellers: Jim and Kimberly Hermansader in well-deserved relaxation mode in the summer of 2012 afterselling the automotive aftermarket business owned andoperated by the family since 1969.

Hermansader’s Garage400 Kohler Hill Road Hamburg, PA 19526

for a couple of years before actuallymaking the final decision to move forward. So it was a very long rideon that coaster.”

Jim and Kimberly had reached apoint in life where their children hadcompleted college, their residentialmortgage was paid off, and they ques-tioned whether they really needed tospend the energy it takes to maintainand grow a business.

“We decided that Art Blumenthalwas the right business broker for us,but then Kimberly and I had a suddenchange of heart when it came to sign-ing on the dotted line, and webacked out. Art understood and was agentleman about it. A year later, wefinally decided that we’d had enoughof running the business, that we reallywanted to enjoy a retirement, and wewere ready to sell.”

About the Buyers

Neither Jeff Pettit nor his son-in-lawChris Yost, co-buyers of Hermansader’sGarage, have a background in the au-tomotive service industry. Jeff workedas an estimating manager for a company that built truck bodies, andChris worked in the computer field.Chris, however, had some vocationaltechnical training for auto repair andspent a lot of time working on oldcars with his grandfather.

Jeff worked for 29 years for the samecompany. Chris received a computerscience degree and then obtained aposition as a computer engineer for ahelp desk firm before buying Her-mansader’s with his father-in-law.

“We wanted to purchase both thebusiness and its real estate becausein this market we could buy theproperty outright for less than wecould rent it,” said Jeff. “But long


before we got to that point, it was an‘emotional rollercoaster’ for me tomake the final decision to go intobusiness for myself.

“My son-in-law and I get alongvery well and have often discussedowning a business together,” Jeff con-tinued. “I was in no hurry to leavethe security of the firm for which Iworked for so long, but Chris was adriving force in making me decidethat we could chart our own destinyby becoming our own bosses. Chrisfound the listing posted by Art Blu-menthal on-line and brought it to myattention. He knew that I would con-sider buying only an establishedbusiness and this one seemed to fitthat bill.”

Jeff and Chris recognized the poten-tial to grow the customer base, an endeavor that the former owners hadnot pursued because they were in retirement mode, rather than business-building mode.

Chris admitted that he always hadthe entrepreneurial spirit. “I alwayswanted to run my own business. Even

though it looked for awhile as if com-puter science would be my careerpath, things changed and now I’m inthe auto service industry.”

About the BusinessHermansader’s Garage, providing quali-ty car care in Hamburg, PA, since 1969(www.hermansadersgarage.net), has areputation for honest and efficient cus-tomer service for two generations, re-sulting in a loyal consumer base and aconsistent positive cash flow.

Located about 60 miles northwestof Philadelphia in east-central Penn-sylvania, this seven-bay, fullyequipped business offered a buyer aunique opportunity for acquiring andgrowing an established profitablebusiness with strong customer loyalty.

Selecting a Business BrokerJim said, “I interviewed two otherbusiness brokers before deciding toutilize Art’s services.”

The other brokers didn’t make thecut because they didn’tseem to fully understandthe complexities of selling alongstanding, profitablebusiness. “One guy wantedto put up big For Salesigns…red flags to cus-tomers, employees andsuppliers,” noted Jim. Con-fidentiality is a key attributeof successfully selling abusiness and an experi-enced business brokerknows that well.

“The other broker who Ihad to disqualify had deepexperience in selling busi-nesses in practically every


The Buyers: New owners of Hermansader’s Garage,Chris Yost (left) and his father-in-law Jeff Pettit, posein front of their newly acquired business.

industry…except automotive service.When I learned that Art specializedin automotive businesses and theninterviewed him at our first meetingabout how he would handle thesale, I knew he was the right choice.Art was so patient and professionalwith us when we initially changedour minds about selling. His reaction impressed us,” observed Jim.

The Business: What’s ItWorth?“When first deciding to sell, I basical-ly had a number in mind for what Ineeded to get for the business so Icould retire,” said Jim. “We knew thatif we hired some more techniciansand committed to amarketing plan, wecould grow thebusiness, therebyincreasing its valuesubstantially. Butthe truth is, that Iwas just tired anddidn’t want tomake those com-mitments, so we established asales price basedupon the actualworth of the businessnow, rather than on itspotential worth.

“Art worked closelywith us to provide guid-ance in establishing asales price that consid-ered our cash flowand other key attrib-utes of our business,”said Jim.

Scope/Timeline of the Sales ProcessInitially, it was Jim’s plan to not in-clude the sale of the real estate alongwith the business. Art recommendedthat, in this case, it might be prudentto list the purchase of the real estateas an option. Although Jim hadplanned on leasing the real estate as asource of monthly retirement income,it was also pointed out to him thatshould the business not succeedunder new ownership, that revenuestream could abruptly be halted. Inthe end, both the business and thereal estate were sold together in a fi-nancing package that made the mostsense to all parties involved.

“Once Art had listed the business inthe Fall of 2011, the next thing I knewhe called and said he had a prospec-tive buyer,” said Jim. “I had thoughtthe process would take a couple of

years, so the speed in which hesupplied a prospect surprised

me. The prospective buy-ers, Jeff and Chris,

came and tooka look on a

Satur-


day in October and we had a nicediscussion, and by Monday Art calledand said they had made a deposit. Iwas both floored and excited by thespeed in which things were happening.

“Just as I was getting accustomed tothe idea that this was going to happensmoothly and I could go to bed andsleep soundly without worrying any-more, as Thanksgiving approached thebuyers suddenly dropped out,” Jimcontinued.

“So we were very disappointed andback to square one…one of thoseplunges on the ‘emotional rollercoast-er.’ But then several weeks later, Artagain called and said the buyers wereback in the game.

“We then waited while eagerly anticipating the bank’s approval ofbuyer financing. Once it was ap-proved and a letter of commitmentwas issued by the bank, it was a bigrelief. We were notified by the bankthat a phase one environmental im-pact study and a business appraisalwould be required. The appraisalturned out fine, but the process gotscary and delayed as some phasetwo testing of the soil and water hadto be completed. Fortunately, the results came back clean from the environmental company that Art recommended.

“But don’t think that ended rea-sons to worry. Further delays by thebank continued my rollercoaster rideuntil the closing actually occurred.But at every turn throughout theprocess, Art was the voice of reasonand a stabilizing force to all our concerns.” The closing took place inMay 2012.

Scope/Timeline of thePurchase Process“Once we met with Art and Jim andviewed the business and did our duediligence,” said Jeff, “we felt confi-dent this was the business for us.Leaving my job and the people who Ihad worked with for so long theretook a lot of thought on my part andwas an ‘emotional rollercoaster’ forme, but I took the plunge.

“But after my initial decision to pur-chase, I had strong second thoughtsabout leaving my job and, as a result,withdrew the offer,” he admitted. “Butafter five or six weeks of nights staringat the ceiling and thinking about it, Irealized that my so-called job securitycould end anytime anyway…theycould close down or lay me off…and I

really ought to take advantage of thisopportunity.”

The next challenge for the buyersinvolved the process of bank financ-ing. “For a first-time buyer, having abroker involved to calm the nerves ofboth sides is definitely a plus. I foundmyself picking up the telephone tocall Art and ask questions very often.He helped me out much more thanthe bank did. He even acted as a


communication conduit with thebank. Our experience with the bankwas frustrating, with all kinds of issues, but eventually everything cametogether,” concluded Jeff.

Post-Sale ObservationsThe buyers decided to retain the nameof the business because of its solidreputation in the community. Jim said,“We maintain contact and are ongood terms. After all, it’s still my nameon the wall of that business and I wantit to be a success for them.”

Jim recommends to others consider-ing the sale of their businesses tomaintain patience during the processand have a business broker who canbe counted on for charting the course.

Jeff and Chris have each embracedthe opportunity to “Be Your Own Boss.”Jeff said, “Much of the work I do nowin my new endeavor is very similar towhat I’ve been doing throughout mycareer…dealing with customers andsuppliers and their specifications, pro-viding quotes, handling telephone calls,and so on. I’m so glad that I made the

decision to buy the business, even if ittook me awhile to make that decision.”

When interviewed about the recentsale a couple of months after the clos-ing, Jim was in a lounge chair under ashady tree sipping a cold beer.

“I was initially a little concernedthat the adjustment from the dailygrind to a life of leisure would be abit of a tough one,” Jim conceded.“But now that I’m doing it, I realize Iadjusted pretty quickly,” he laughed.“Some serious travel and some seriousgolfing are in the future plans. I haveto become adjusted to schedulingleisure time with as much commit-ment as I used to schedule work.”

Buyers Jeff and Chris have manyideas for growing the business whilemaintaining the excellent reputationwith customers built by the Her-mansaders. “Our new advertising andcustomer appreciation marketing programs have captured new cus-tomers for us and we are delighted bythat,” noted Jeff. “In addition, we’vealready added a new employee tohandle the new business.”

Chris is happy to be controlling hisown destiny by owning his own busi-ness at a relatively young age and already has plans in mind for expansion of both theservices provided andof the facilities. SO


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

“The transmission shop as weknow it is gone,” Kuhn says.“My transmission shop inOceanside is doing well, andit’s sad to say, but it’s becauseof the demise of the other trans-mission shops in my town.There were 11 transmissionshops in 2008. It’s me andAAMCO now, and AAMCO’s

doing general repair. I think thestand-alone transmission shop isa thing of the past.”

Satellite Tranny ShopsIn an effort to expand his shop’scustomer base, Kuhn formedCertified Transmission of SanDiego, CA, and opened satellite

transmission shops withinother general repair shopsthroughout the county.The Certified TransmissionNetwork includes eightshops throughout thecounty, and it features itsown website and market-ing plan. It’s a unique approach to growing hisbusiness, and it’s reallypaying off.

“In Encinitas, I have asatellite shop at Brad’s For-eign and Domestic,” Kuhnexplains. “I’m in thebuilding with them, butwe have a separate office.Their technicians do all of

Shop|Profile|

Oceanside TransmissionSpecialization And A Unique Business Plan FosterPartnerships With Other General Repair Shops

While Oceanside Transmission has been in business since 1989, theway Owner Dean Kuhn does business hasn’t changed. Gone are thetransmission-only shops of the past; to survive, a change in businessmodel was a must.

by Debbie Briggs, contributing writer


Oceanside Transmission owner Dean Kuhn.

the repair work. My Oceanside storeis Oceanside Transmission, but it’s alsoCertified Transmission of Oceansidebecause the certified network is a mainpart of how we market ourselves.

“Customers who need a transmis-sion go onto our certified site andfind a location, and then they bookthe appointment at that repair shop.If the shop needs a transmission orthey need technical support, we sendit to them.”

Kuhn says his business is also thriv-ing thanks to the business relation-ships developed with local repairshop owners outside the CertifiedTransmission Network, as well as withwholesale transmission shops.

“We do work for all the general repair shops in our area, and we alsosupply transmissions, our own re-builds and our own remanufacturedtransmissions, to all the cities, schooldistricts, municipalities and military,”

he says. “Being a specialist, whathappens is the aftermarket will dealwith us because we’re not their com-petition. The local general repair shopdoesn’t really want to send their cus-tomers down the street to someonewho’s doing the same types of repairs.And being a specialist has allowed usto team up with the wholesale busi-ness, as well.”

Feet On The StreetIn addition to long-time techniciansand machinists, Kuhn says he also


employs outside salespeople, who donothing but go out and “meet andgreet” other area shop owners.

“I try to bridge the gap between thegeneral repair guy who is doing trans-mission work, but he’s not a special-

ist,” Kuhn explains. “Sometimeshe gets in a rut,

and we try tobe his answer.If he wants tobuy one and install it, we’rethere for him. Ifhe wants to takeit out and haveus rebuild it,we’re there forhim. And if theydon’t understandtheir diagnosticprocess or some-thing along the way,

we’re there for them. Once we’ve

done that for them a couple times,we usually have a pretty good rela-tionship.”

Oceanside Transmission also pro-vides transmission work to retail cus-tomers, who usually find the businessthrough the Internet, an important partof attracting customers who will mostlikely have the need for a new trans-mission once only in their lifetime.

“Being a transmission shop, most ofthe retail people who come to us arenew,” Kuhn says. “When they’re new,they’re looking for information; they’relooking to build credibility. They’ll investigate us. A good website is absolutely a must.”

Shop Appeal And FirstImpressionsKuhn also pays close attention to shopappearance. It’s everything, he says,especially when customers visit your


“I think the biggest thing we’ve doneis having a transparent businessbetween us and the employees, to

where they really under-stand whatneeds to bedone for thebusiness.”-Dean Kuhn, owner


Bobby Bonnilla, customer service rep

Dennis Kosko, head machinist,

Torque Converter Dept.

Henry Gonzalez, chassis technician

Dennis Garringer, generalmanager, and Dean’s wifeKristal, the “boss,” who bothrun the shop day-to-day.

Josh Pickens, manager, Torque Converter

Dept. (Dalenzie Torque Converters).

Dennis Kuhl, shop foreman/diagnostician, andCertified Master Transmission Rebuilder.

Sam Floyd, onerebuilders in thentire tranny re

shop only a few times; it’s critical tomake a good first impression.

He was doing outside sales (andhad opened up a place in OrangeCounty) and found that whenever hewould walk into a shop for the first

time, he would

rate it after he left.“Every time I foundmyself giving ashop an ‘A’ it wasbecause of the curb

appeal,” Kuhn explains.

It inspired him toreally focus on mak-ing the shop present-able for the customer.And since 1997,

that’s what he’s done.“I have older buildings that are all

from the ’40s and ’50s. We paintedthem a million times and finally said,let’s do something different,” he ex-plains. “I have guys in my machineshop who are really talented, and weput a complete glass façade on ourbuilding. Then we put $55,000 into theoffice and customer waiting area. Thatwas in ’98, and it still looks awesome.”

Most of those talented employeeshave been with Oceanside Transmis-sion for several years — as long as 17.Kuhn credits being open about busi-ness with helping employees to have avested interest in the shop’s success.

“I think the biggest thing we’vedone is having a transparent businessbetween us and the employees, towhere they really understand whatneeds to be done for the business,” heexplains. “That, in turn, allows us topay them better. I found when Ishared my ideas and strategies — andthe books openly — it seemed to really help them understand.”

Tailored employee compensationprograms, medical insurance and ahealthy time-off package — starting atthree weeks per year — all help attract and keep employees.

“We don’t work Saturdays,” Kuhnadds. “One day is not enough time foremployees to do their ‘honey-do’ list,get a nap in and play with their kids.Years ago, we went to Mondaythrough Friday.”

And that’s one thing Kuhn learnedearly on from working with EliteWorldwide, Inc. (an auto repair busi-ness sales and marketing solutionscompany, www.eliteworldwidestore.com) — he knows how to hirethe superstars. And, by empoweringhis people to have a vested interest inthe company, turnover is one businessconcern that doesn’t affect this suc-cessful shop. SO


Robert Aceves-Palos, chassis technician

e of the best transmissionhe country, heads up theebuilding dept.

Cindy Bendle, “the

transmission gal,” is in

charge of the Reman

Transmission Dept.

(Drivetrain Solutions).

In celebration of October FallCar Care Month, the councilsponsored the event that pro-vided free vehicle check-ups forconsumers by professional au-tomotive technicians from BelleTire and automotive technologystudents from Delta CommunityCollege. Teams inspected 41items on each vehicle includinglights, fluid levels,belts, hoses, tires,filters, battery andother systems andcomponents.

“Clearly, the eventprovided a largeand impressive foot-print for the inde-pendent automotiveaftermarket at theauto show and greatly enhanced the positive image ofthe service and repair profes-sion,” said Rich White, CarCare Council executive director.

“By all accounts, the eventwas extremely popular with

consumers; most hoping theevent will be held again nextyear,” White continued.

Students enrolled in North-wood’s Automotive AftermarketManagement program and automotive technology stu-dents from Delta CommunityCollege had the opportunity tohelp operate the event with the

Car CareCouncil,gaining first-hand experi-ence talking


Sales|Marketing|

Car Care Council VehicleCheck-up EventsBoost Customer Confidence and Help Shops GarnerUnperformed Maintenance Opportunities

More than 100 vehicles were inspected in October during the first-ever consumer vehicle check-up event conducted by the Car CareCouncil in conjunction with the Northwood University InternationalAuto Show in Midland, MI.

by Rich White, executive director, Car Care Council


with vehicle owners, assisting with the vehicle inspections and participatingin educational demonstrations about preventive maintenance.

Be Car Care Aware Campaign

Each year during National Car CareMonth in April and Fall Car CareMonth in October, hundreds of con-sumer vehicle check-up events arehosted by repair shops, parts stores anddistributors throughout the country. Carcare month celebrations are an idealopportunity for aftermarket businessesto tie in with national publicity thatdraws attention to the importance ofregular vehicle care and maintenance.

A repair shop can greatly benefit byconducting a free car care event that iseducational and promotes goodwill inthe community. Vehicle inspectionevents are not intended to be sellingevents, but rather non-threatening opportunities for consumers and tech-nicians, shop and store owners andmanagers to interact. By strengtheningcommunity ties and reaching out toprospective customers, shops can in-crease traffic, sales and service.

Car Care Month celebrations are justone part of the “Be Car Care Aware”

campaign. The campaign is a con-sumer education program about thebenefits of regular vehicle care, main-tenance and repair, designed to pro-vide knowledge from all segments ofthe automotive aftermarket industry.

The campaign’s purpose is two-fold.First, is to provide consumers with un-biased, expert information to help themmake better decisions regarding theirvehicle maintenance, and offer themtools that make the process easy andintuitive. Second, reversing the trend inunperformed maintenance will aid inconserving energy, improving highwaysafety, benefit the environment and pro-vide an economic benefit to both con-sumers and the aftermarket industry.

To learn more about how to host avehicle check-up event or to learnmore about the CarCare Council and the“Be Car Care Aware”campaign, visitwww.carcare.org. SO

Rich White, MAAP, is seniorvice president of theAutomotive AftermarketIndustry Association (AAIA).He oversees the marketing/communications, membership, education and market research depart-ments, and also is the executive director of the CarCare Council and the “Be Car Care Aware” campaign.

Shop Owner, 11/12.2012

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