Jobber News
TENNECO COMMEMORATES 100TH ANNIVERSARY OF MONROE BRAND • FORMER PM ADDRESSES AUTOMOTIVE EXECUTIVES IN MONTREAL
JULY 2016
Serving the Automotive Aftermarket Since 1931
THE GROWING THREAT OF ASBESTOS
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2016 JOBBER OF THE YEAR OLD-SCHOOL CUSTOMER SERVICE
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NORTHERN METALIC SALES (GP) 9708-108 St. Grande Prairie AB T8V 4E2 Tel: (780) 539-9555 northernmetalic.com
HUSKY ENERGY CORPORATION 707-8th Ave. S.W. Calgary AB T2P 1H5 Tel: (403) 298-6709 huskyenergy.ca
UFA 4838 Richard Rd. S.W. Suite 700 Calgary AB T3E 6L1 Tel: (403) 570-4306 ufa.com
CHRIS PAGE & ASSOCIATES LTD 14435-124 Ave. Edmonton AB T5L 3B2 Tel: (780) 451-4373 chrispage.ca
RED-L DISTRIBUTORS LTD 9727-47 Ave. Edmonton AB T6E 5M7 Tel: (780) 437-2630 redl.com
49 NORTH LUBRICANTS 1429 Mountain Ave., Unit 2 Winnipeg MB R2X 2Y9 Tel: (204) 694-9100 Fax: (204) 775-0475 49northlubricants.com
CASE ’N DRUM OIL INC 3462 White Oak Road London ON N6E 2Z9 Toll Free: 1 (800) 265-7642 www.cndoil.ca
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CREVIER LUBRIFIANTS 2320, Rue de la Métropole Longueuil (QC) J4G 1E6 Tél : (450) 679-8866 crevier.ca
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Jobber News
contents | july 2016 » vol. 84 no. 7
Serving the Automotive Aftermarket Since 1931
regular features
6 6
14
COVER STORY
Ware’s Automotive and Industrial Supply 2016 Jobber of the Year
7
OVER THE COUNTER Former PM addresses automotive executives in Montreal; Ontario business meeting brings NAPA jobbers together; Tenneco commemorates 100th anniversary of Monroe brand; AAEC announces best of the best award winner for 2015; Restored Raybestos 1969 Mustang revealed; Dorman’s “Outdoor Adventure” sweepstakes offers service techs over $40,000 in prizes.
Old-school customer service wins the day
22
Jim Ware, with his sons Tim and Dave and their staff, work very hard to provide unbeatable service, and it shows. Just ask their customers.
MARKET TRACKER
The growing threat of asbestos 9
12
The Canadian aftermarket is slowly waking up to the realization that asbestos is still coming into Canada in the form of imported brake friction products – and the volume at which it is entering the country continues to grow.
22
30 MONEY & MANAGEMENT
in this issue
Dealing with rejection
12 MARKET FEATURE
How to build filter profits
30
departments
When it comes to profits, filters are often overlooked. It is not that jobbers are unaware of their profit potential; it’s more likely that many focus on lowercost filters as they can be sold quickly in great volumes, and appeal to service providers who are looking to stay competitive on price. Is there a better approach?
4
28 New Products 32 Marketplace Advertisers 28
|
Twitter: Andrew Ross (@JobberNews) |
JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
UpFront Four ways to keep customers coming back
Index
www.facebook.com/pages/AutoServiceWorldcom/244916465611841
3
upfront |
with steve pawlett, editor » spawlett@jobbernews.com
Jobber News
FOUNDED 1931
4 WAYS TO KEEP CUSTOMERS COMING BACK
Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts.
I Returning customers are also known to spend more than
first-time customers. E-commerce spending for new customers is on average $ 24.50, compared to $
52.50
for repeat customers, according to McKinsey & Company.
t’s often said that it costs more to acquire a new customer than retain an existing one. That’s why treating your customers right after they buy is just as important as it is before they buy. One of the easiest ways to grow your business is to keep your existing customers coming back. Let’s take a look at the customer retention math: Company A has 1,000 customers and retains 90% of them year over year. Company B also has 1,000 customers, but retains only 80%. Both companies are adding new customers at a rate of 20% annually. Company A will experience a net 10% growth rate, while Company B is not growing its customer base at all. If you look at it over several years, the retention growth rate continually compounds year over year. At the end of nine years, Company A has actually doubled the number of its customers, while company B only has 700 customers out of its 1,000 starting point. Returning customers are also known to spend more than first-time customers. E-commerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers, according to McKinsey & Company. Returning customers are crucial to a business’s growth. Here are a few ways to keep your customers loyal.
1
Say thank you It’s an obvious one, but it works. Customers like to feel appreciated, especially if they just spent money with you. There are a variety of ways to say thank you.
2
Get customer feedback Asking for feedback about a customer’s experience or product quality shows that you’re engaged in your business and looking for ways to improve. You should consider sending a satisfaction survey directly to your customers. Not only will you get valuable feedback to help you make improvements to your business, but it keeps your business top of mind with customers.
3
Consistently communicate Reach out to your customers on a regular basis. Whether it’s a newsletter, coupon, or an event invitation, customers want to hear from you about new products, services, discounts, or events.
4
Highlight a customer experience Showcasing one of your customers in your store, in an email newsletter, or a re-tweet can garner great engagement. Everyone likes a little attention paid to them or their cause. If you’ve got a customer raising funds for a charity, offer to put up a flyer in your window and on your website, sponsor their cause, tweet about it, or mention it in one of your blog posts. By sending regular post-purchase communications you send the message that you care about more than just selling. JN
4
Editor | Steve Pawlett (416) 510-6839 E-Mail: spawlett@jobbernews.com Contributing Editor | Martha Uniacke Breen E-Mail: mubreen@sympatico.ca Contributing Writers | Andrew Brooks, Mark Borkowski, Tom Venetis Art Director | Barbara Burrows Managing Director, Auto Div. & National Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca Publisher & National Sales | Andrew Ross (416) 510-6763 E-Mail: aross@jobbernews.com Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: denis@newcom.ca Advertising Production Manager, Print/Digital Kimberly Collins (416) 510-6779 E-Mail: kim@newcom.ca Print Production Manager | Phyllis Wright (416) 510-6786 Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca
Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent. Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Business Media Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.
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www.autoserviceworld.com | JOBBER NEWS / JULY 2016
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over the counter |
FORMER PM ADDRESSES AUTOMOTIVE EXECUTIVES IN MONTREAL Former Canadian Prime Minister Jean Chretien addresses the Automotive Conference for Executives in Montreal. Far right: Larry Jefferies (middle), co-founder of Carstar Canada, is awarded the AIA’s Distinguished Service Award. It was presented by incoming AIA chairman Doug Reevey and outgoing chairman Tony Canade, president of
For
more over the counter
news
check out
6
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Assured Automotive.
Former Canadian Prime Minister Jean Chretien was the final speaker at the annual Automotive Conference for Executives (ACE), held in Montreal last month. Chretien shared stories of his time in politics and stressed the importance of the automotive industry to the Canadian economy. Speaking to a room full of automotive parts manufacturers and distributors, Chretien said he followed developments in the automotive world closely throughout his career – particularly when the Canadian government was negotiating the Auto Pact, which stipulated that some portion of the automobile parts manufacturing and vehicle assembly work would not leave the country. “And now your industry is responsible for – I’m told, because I did not count them all – 2.4 million cars a year. Obviously it is very important for Canada,” he said. “It also serves as an example that government and industry can work together.” Chretien closed the Automotive Industries Association of Canada’s annual ACE Conference with an extended question-and-answer period – a format he said he enjoys very much, given his many years facing opponents in the House of Commons during Question Period. The Q+A was moderated by Randy Moore, president and CEO of Mister Transmission, and Mauro Cifelli, vice-president of
MOOG PRODUCT LINE GROWS BY NEARLY 50 PART NUMBERS
sales and marketing for Vast-Auto Distribution. Addressing a question from the floor, Chretien acknowledged that the future of the Keystone Pipeline is uncertain. “The pipeline business is very difficult,” he said. “B.C. did not want the pipeline going through B.C. The Americans did not want the pipeline going through the United States. I am in favour of the pipeline coming through here [Quebec] because I believe, very simply, it’s much safer to have oil coming through a pipeline than a train.” He said parochial interests have won the day south of the border. “The problem in the United States is that they don’t want our oil because they found their own oil. They would prefer our oil to remain in Canada because they know it will always be there [if they need it].” Attendees at the AIA’s annual conference also heard from Karl Subban, the father of NHL players P.K., Malcolm, and Jordan Subban, and Joel Jackson, founder and CEO of Mobius Motors, based in Nairobi, Kenya. The association’s highest honour, the Distinguished Service Award, was given to Larry Jefferies, co-founder of Carstar Canada. The Young Executive of the Year Award went to Keith Gordon of Delphi.
Federal-Mogul Motorparts, a division of Federal-Mogul Holdings Corporation, has added 48 new part numbers – nearly half of which are the first available within the aftermarket for their applications – to the Moog line of steering and suspension parts, driveline components, and wheel hub assemblies. The new Moog parts cover more than 100 million potential service opportunities spanning a broad range of popular late-model North American, Asian, and European passenger vehicles
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
ONTARIO BUSINESS MEETING BRINGS NAPA JOBBERS TOGETHER
“
Challenge your own assumptions: ask yourself if your business is properly positioned,” NAPA Ontario regional vice-president Chris Kinghorn told some 200 Ontario NAPA associate and corporate store personnel, suppliers, and NAPA management at its Ontario business meeting. The meeting, held in May at the Blue Mountain Resort in Collingwood, Ont., was one of a series of regional events for associates and corporate stores being organized across Canada by NAPA this year. Kinghorn kicked off the opening general sessions by also urging store personnel to promote greater participation in the services available through NAPA’s banner programs to their customer base. “The more active the customer is, the more successful they are. The more they adopt the programs, the more successful and sustainable your business will be.” UAP president Alain Masse also addressed attendees, and while he urged all to take full advantage of the information being offered at the event, he took the opportunity to report the welcome news that the organization had been in touch with Paramount Parts owner Brent Usick, and that all the staff at the Fort McMurray NAPA associate had safely escaped the fire that has ravaged the Alberta town. Masse also announced that a plan was being developed for NAPA to provide assistance to Fort McMurray residents. The event kicked off with a well-attended Friday night trade show and networking event that featured more than 40 exhibitors featuring branded and private-label products. Exhibitors were positive about the high quality of communications they were able to achieve in the venue. Following the opening general session, day two of the event focused on getting attendees briefed on
marketing plans for the organization, providing tips for improving accounts receivable, a rundown on major accounts and banner program developments, and new products. One of the best-received sessions was “Auto Technology of the Future,” presented by Dr. Peter Frise of University of Windsor. His presentation outlined the challenges and opportunities that rapidly evolving automotive technology will present to the aftermarket. “CAFE will dominate everything,” he told attendees, before going into detail about how corporate average fuel economy (CAFE) is driving advanced materials usage and powertrain design, including the increasing use of turbocharging and supercharging, alongside other developments such as connected car technologies. He also emphasized that the consolidation and interchange of parts among vehicle manufacturers will make the supply chain even more confusing than it is today. The event wrapped with a gala dinner where longtime NAPA associates were recognized; the comedy couple of Colin Mochrie and Debra McGrath closed the festivities.
“
The more active the customer is, the more successful they are. The more they adopt the programs, the more successful & sustainable your business will be.
”
– CHRIS KINGHORN
DORMAN’S “OUTDOOR ADVENTURE” SWEEPSTAKES OFFERS SERVICE TECHS OVER $40,000 IN PRIZES Dorman Products has kicked off its new Outdoor Adventure Window Regulator Sweepstakes. Running May through September, this new sweepstakes awards service technicians one contest entry for every Dorman Window Regulator purchase made through qualified parts providers.
Photo: Willard – iStockphoto
In October, over 100 winners will be selected to win a variety of prizes worth over $40,000, including: Z 1 Grand Prize of an Alaskan fishing excursion or Jamaican golf getaway for the winner and a guest Z 1 First Prize of a Honda ATV or Yamaha Wave Runner Z 1 Second Prize of a Weber Grill prize package Z 4 Third Prizes of $500 Bass Pro Shop gift cards Z 100 Runner Up Prizes of $100 Bass Pro Shop gift cards For complete contest rules, as well as an easy form to enter sweepstakes purchases online, visit www.DormanSweepstakes.com. JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
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over the counter |
TENNECO COMMEMORATES 100TH ANNIVERSARY OF MONROE BRAND More than 300 guests, including employees, government
officials, representatives of the North American auto industry and other VIPs, attended a celebration of the 100th anniversary of Tenneco’s iconic Monroe Shocks and Struts brand at the company’s global aftermarket facility in Monroe, Mich. Also attending the event were descendants of Monroe founder August F. Meyer and his business partner Charles S. McIntyre, who helped make the brand an early leader in ride control technology. “Today is a celebration of the innovation and passion for excellence that have made Monroe a leading global brand over the past century, and which will drive its continued growth over the next 100 years,” Tenneco chairman and CEO Gregg Sherrill told the audience. “This is one of the elite industry brands that defines its category, particularly in the minds of automotive service professionals, who each day choose Monroe products to help deliver a superior driving experience for their customers.” The brand’s origins date back to 1916, when Meyer established a tire pump manufacturing company in Monroe, Mich. He soon formed a partnership with McIntyre, a local automobile dealer. The company in 1919 was renamed Monroe Automobile Equipment Manufacturing Company (later shortened to Monroe Auto Equipment Company). It wasn’t until 1926, with demand for tire pumps having peaked, that the partners developed their first shock absorber, the Monroe Shock Eliminator, which was based largely on the single-barrel tire pump. The company invented the first doubleaction shock in 1929, and by 1933 was a leading supplier to Detroit-based vehicle manufacturers. Monroe introduced shocks for railroad passenger cars in 1938 and by 1951 had become one of North America’s leading suppliers of shock absorbers both to vehicle manufacturers and the aftermarket. “One of the hallmarks of great companies and brands is their ability to anticipate and address emerging challenges and opportunities,” said Jeff Koviak, vice-president and general manager, North America aftermarket, Tenneco. “The shift to ride control in 1926 is a perfect example of this, as were our investment in products and programs to serve the growing aftermarket beginning in the 1950s; Tenneco’s expansion into
Trade press and members of the McIntrye family toured the Monroe plant and learned about several Monroe brand innovations.
the strut category in the early 1980s; and our development of complete strut assemblies in 2003.” Tenneco, which acquired Monroe Auto Equipment Co. in 1977, has continued this heritage of innovation, re-investment, and customer service excellence. The company today operates 15 world-class engineering centres across five continents, and serves the world’s leading OE manufacturers and replacement parts distributors and retailers. Monroe is the predominant brand of replacement ride control products in North America, South America, and Europe and has established a strong foundation for growth in China, India, and other markets. “Tenneco’s aftermarket leadership is based on our ability to help our channel partners grow through exceptional product quality and performance, industry-best marketing, and customer service,” said Joe Pomaranski, senior vice-president and general manager, global aftermarket. “Always remain close to your customer – the same core belief of our founders is still central to our success today.” Those attending the 100th anniversary celebration also had the opportunity to learn about several of the latest Tenneco and Monroe brand innovations for the original equipment and replacement markets. These included the OE-focused Monroe Intelligent Suspension portfolio, which comprises adaptive, semi-active and active suspension solutions, serving all vehicle segments.
F Friedrich Fischer’s ideas are the iinspiration that keep our wheels turning. F From it’s beginnings in Germany over 130 years ago, FAG has been a leader in tthe roller bearing industry. Friedrich Fischer invented the steel ball grinding m machine in 1883, paving the way for the modern ball bearing. His company, FFischer AG, known today as FAG, continues to build on his tradition. W When you install FAG products, you get OE quality and more than 130 years of experience and manufacturing excellence. o
TRADITION! 8
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
AAEC ANNOUNCES BEST OF THE BEST AWARD WINNER FOR 2015 Bob Greenwood, president and CEO of Automotive Aftermarket E-Learning Centre Ltd.,
announced that Tirecraft Auto & Exhaust of 116th Ave., Edmonton, Alberta, has won the prestigious BEST of the BEST Award for 2015. The award is won by the independent shop that has improved its business the most in one year compared to its previous year, among all the AAEC BEST clients across Canada. There are 13 key business measurements that are analyzed equally among all AAEC BEST clients. The Award was presented to Keith Burrill and James Brewer, the owners of Tirecraft Auto & Exhaust, along with the entire Tirecraft Garage team, with a surprise visit by the AAEC executive team on Wednesday May 11th, 2016. “We are very excited to have this recognition and it took us totally by surprise,” said Burrill when the AAEC executive informed him of the win. Added Brewer, “Rui was expected tomorrow for his two-day onsite visit with us, but when both of them got out of the car today, I was trying to figure out what was going on! It took all of us by total surprise. Thank you to Bob Greenwood and Rui Martins for coaching us in the right direction. Also a big thanks to my business partner Keith Burrill, and our wonderful staff, Jake Gash, Kadi McDonald, Tina Curry, Doug Tessari, and Ed Stenzel. We will continue to push forward and change the automotive industry one client and vehicle at a time. This is an honour.” AAEC president Bob Greenwood said in his remarks, “In business today, it is about implementing the details that bring the business processes together that execute at a higher professional level for the client, and by doing so it builds a tremendous business culture. That is not easy to do, but Keith and James, along with their entire team, believed in the accountability to make it happen, and persevered through many obstacles and got it in place. This company is now poised for solid growth in 2016 and 2017. We are very confident this particular Tirecraft store will make a difference in their Edmonton marketplace, because the bar is now raised as to how business will be conducted and measured with each client.” “BEST” stands for Business Evaluation Support and Training. Information on this unique business concept can be viewed on the AAEC website at www.aaec.ca, by clicking on the services tab at the top.
MANN+HUMMEL COMPLETES ACQUISITION OF AFFINIA GROUP Mann+Hummel has completed its acquisition of Affinia Group. “The addition of the Wix and Filtron brands to Mann+Hummel strengthen our global presence with an expanded product portfolio and access to new markets,” says Alfred Weber, president and chief executive officer of Mann+Hummel. “Our joint 150 years of experience, complementary competencies, and 20,000 valued employees worldwide ensure that we will continue to grow and serve our customers with the best in filtration solutions.” The two companies will bring together on- and off-road and industrial filtration solutions. Affinia’s filtration business includes the familiar brands Wix and Filtron, and specializes in the oil, fuel, hydraulic, and coolant filter aftermarket. Mann+Hummel is a privately held global filtration expert offering filtration solutions to original equipment and aftermarket customers in both the automotive and industrial sectors. Mann+Hummel will lead the group as a new business unit based in North Carolina in the U.S. Keith Wilson, previously CEO and president of Affinia, will retain his executive function as president and CEO of Mann+Hummel Filtration Technology and report to Manfred Wolf, the supervisory board chairman of the acquired company. JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
RESTORED RAYBESTOS 1969 MUSTANG REVEALED The restoration of the Raybestos 1969 Ford Mustang is complete, and the classic muscle car is ready to hit the road to show auto enthusiasts what all the buzz is about. “Raybestos and Mustang are the perfect match of history, leadership, and innovation, and that connection is evident in this one-of-a-kind classic car,” says Kristin Grons, marketing manager, Brake Parts Inc. “Jeff Schwartz and the team at Schwartz Performance have really outdone themselves. The Raybestos 1969 Mustang is a true masterpiece restored to all its glory.” Raybestos teamed up with worldrenowned Schwartz Performance to restore the highly anticipated Raybestos 1969 Mustang. Painted in classic Mustang colours and striping true to the time, the custom muscle car features a new Ford Coyote engine similar to the one found on the modern Boss 302. Schwartz Performance installed its famous “G-Machine” bolt-in chassis as well as an off-the-shelf performance disc brake upgrade package, using Raybestos components and Element3 brake pads with Enhanced Hybrid Technology (EHT). “As we rebuilt the Raybestos ’69 Mustang, we partnered with the finest supplier partners, the best of the best,” says Grons. “When you consider the calibre of companies that came together for this restoration, it is very clear that the Raybestos 1969 Mustang is one outrageous muscle car.” The iconic Raybestos 1969 Mustang will travel throughout North America before making its way to the 2016 Automotive Aftermarket Products Expo (AAPEX) in Las Vegas, where it will be awarded to one lucky winner. To learn more about the build process and partners, as well as view photos and videos of the restoration, follow Raybestos on its Facebook and Twitter social media platforms or visit www.RaybestosBuild.com.
9
over the counter |
AUTO SALES SEEN AT RECORD PACE AS VIRTUAL REALITY BECKONS BUYERS As automakers aim to keep sales ahead
of 2015’s record-setting pace, they’re pulling out all the stops to draw in buyers. Virtual reality may be next in their bag of tricks.
Electric Water Pumps
Water Pumps
Thermostats
Fan Pulley Brackets
Clutch Hydraulics
Vacuum Switching Valves
Power Back Door Actuators
Inverter Water Pumps
Hydraulic Belt Tensioners
Free Wheel Hubs
Manual Transmissions
Volkswagen AG’s Audi plans to roll out Oculus Rift headsets in a number of dealerships by the end of this year. With dealers from Brazil to Berlin
Shift Actuators
Oil Pumps
Fan Blades
Fan Clutches
Clutch Kits
ABS Speed Sensors
Oil Control Valves
Variable Valve Timing Gears
Form-In-Place Gaskets
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Electronic Throttle Bodies
Automatic Transmission Fluids
Door Lock Actuators
Antifreeze Coolant (Pink & Blue)
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already experimenting with virtual reality, automakers see twin benefits to the technology: enhance the customer experience while also shaving off some of the $US2.75 billion U.S. dealers spend annually on interest to keep new vehicles on their lots. Letting customers manipulate models, colour schemes and features in a virtual environment is automakers’ latest tool to distinguish themselves in a slowergrowing yet very profitable market. April sales show gains for most of the biggest U.S. and Japanese automakers, as the annualized selling rate, adjusted for seasonal trends, rises to 17.5 million, according to a Bloomberg survey. The pace and the month’s total are projected to set April records. “Top-line performance of the industry remains robust – retail demand is strong, transaction prices are at record levels, and consumers will spend more on new vehicles than in any other April on record,” John Humphrey, senior vice-president of the global automotive practice at J.D. Power, said in a statement. “The slowing rate of growth, shift in consumer demand away from cars and toward SUVs, and elevated fleet volumes pose significant challenges to manufacturers as they compete in the marketplace.” General Motors expects industry-wide sales to rise by 5%, and a seasonally adjusted annualized pace of 17.5 million vehicles or higher, says Kurt McNeil, vicepresident of U.S. sales. While Ford and others have increased sales to fleet customers this year, GM has reduced them. As a result, the Detroit-based automaker delivered record North American profits in the first quarter, even as U.S. sales slipped by a few hundred. For April, analysts project a 1.7% decline for GM. “The economic fundamentals are there,” McNeil said. “Interest rates are still low and gasoline prices may be the lowest this summer since 2005.” Nissan Motor Co.’s sales may rise by 11%, the biggest increase projected by the analyst estimates, followed closely by Honda Motor Co., seen gaining by 10%. Combined sales of Volkswagen’s VW and Audi brands may fall 1.5%, as Europe’s largest automaker tries to overcome consumer distrust since its dieselemissions cheating scandal last year.
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
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20986
market feature | filter focus
HOW TO BUILD FILTER
W
hen it comes to profits, filters are often overlooked. It is not that jobbers are unaware of their profit potential; it’s more likely that many focus on lower-cost filters as they can be sold quickly, in great volumes, and appeal to service providers who are looking to stay competitive on price. While price is certainly one factor driving sales of lower-end filter products, jobbers need to keep in mind that more significant growth and profits are coming from premium filter products. Research and Market’s recent report, “Global Automotive Filter Market 20162021: Trend, Forecast and Opportunity Analysis,” takes a look at the global automotive filter market and finds the market in this product category looks promising both for the OEM and the aftermarket. To quote from the executive summary: “The global automotive filter market is forecast to grow at a CAGR of 4.9% from 2016 to 2021. The major drivers of growth for this market are an increase in the production of vehicles, increasing focus of vehicle owners on preventive maintenance, increasing average age of vehicles in operation, and increasing miles driven per vehicle.” The findings of Research and Market’s study are supported by a recent report 12
put out by The NPD Group, “2015 Emerging Car Care Trends.” The NPD Group finds that owners of both new and older vehicles are spending more on maintenance and repair. What is most significant to jobbers is where those maintenance dollars are being spent. Vehicle owners, the report finds, are putting their maintenance and repair dollars on premium, high-quality automotive products. And while price is certainly a factor for some vehicle owners, an ever increasing number of vehicle owners are shifting to paying more for products that are of significantly higher quality, and that offer real benefits in helping their vehicles perform better and last longer. Focus on the Premium So what does this mean for jobbers? Simply, it is best to focus on premium filter products. Vehicle owners are already turning to premium products. All new vehicles being sold strongly recommend that premium products, from oil to filters, be used when it comes
“
to regular maintenance; and older vehicle owners are now moving to using premium products to both maintain and extend the life of the vehicle. Jay Buckley, technical training director with the Fram Group, makers of Fram filtration products, says that Fram has been seeing this consumer shift to premium filter products for some time now. “Why? A car is a huge investment for most people,” he explains. “They read the owner’s manual and see the extended drain intervals [for oil changes] and are not willing to go that long between changes without using quality oil and premium filters.” “[Jobbers] should know that many ‘basic’ or low-cost filters only have enough capacity for the old industry standard of 5,000 km (3,000 mile) oil changes,” Buckley adds. “Extended drain intervals require a filter with at least as much dirt trapping capacity as the OE filters.” Edward Covington, vice-president, global quality, with Affinia Global Filtration agrees that the market has
Owners of both new and older vehicles are putting their maintenance and repair dollars on premium, high-quality automotive products.
”
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
Photo: ultramarinfoto – iStockphoto
profits
BY TOM VENETIS
shifted to premium filters amongst vehicle owners, especially when it comes to oil filters. What jobbers need to do is figure out how to best match oil filters to vehicles and driving conditions, and to seek out the upsell opportunities for helping service writers and technicians move more consumers to premium filters. “Filters should be matched based on how you drive and when you want to change your oil and filter,” says Covington. “Standard oil filter offerings are best for highway operations, normal driving conditions, and traditional change intervals, generally 5,000 to 8,000 km (3,000 to 5,000 miles). Premium filters are best for severe driving conditions, on- or off-highway, and the OEM recommended change interval per the owner’s manual or life indicator, generally 6,000 to 16,000 km (3,750 miles to 10,000 miles), [and] not to exceed one year.” Where premium filters will really make an impact for jobbers is with European vehicles. Bill McKnight, team leader, training for Mahle Aftermarket Inc., says in 1999, European import vehicles on Canadian roads were only a fraction of the number of total vehicles sold in Canada, just a few million in total. “Today, that number has doubled, and this presents an opportunity for general repair shops and service stations to cater to this growing category.” What is unique about this category of vehicle owner is how they view vehicle maintenance. These owners put a premium on using OE-quality aftermarket parts and fluids, which includes such product categories as filters. “Owners of European cars tend to be very particular about maintenance,” says McKnight. “They tend to maintain OE brand loyalty, and extend this to the parts used in repairs. This means the quality of the parts you use is particularly important to your European car owners. This applies to not only critical suspension and engine components, but to regular replacement items like filters.” What Makes a Premium Oil Filter? This is a question that will be asked not
just of the front-line jobber staff, but of the service writer and technician. How you answer this question will help you make moving the technician and customer to premium filter products easier. The reason why a jobber’s staff will be asked this question is that when you put a standard oil filter and a premium oil filter side by side, they often do not look different from each other. The only difference will likely be the label that identifies one as a premium product. So a price-conscious vehicle owner, service writer, or technician may wonder why they are paying more for a premium product that looks no different from its standard sibling. Remember the saying that it is what’s inside that counts? What is important now is that today’s premium oil filters are now designed to work with certain motor oil blends in order to provide better filtration of particles and to keep the oil flowing to critical engine components. Fram’s Buckley says that while one can summarize the difference between a brand-name premium filter and a standard or no-name filter as Quality, Warranty and Engineering, “The real difference is in the filter media and valves. Inexpensive filters usually have plain rubber valves and cellulose media. [These] are not good for extended drain intervals. Premium filters will have a cellulose/synthetic glass blend or full-synthetic media, along with silicone valves.” “Full synthetic glass media is now found in many top-end filters,” Buckley continues. “It has both great efficiency and great capacity.” Many of these filters are also specifically designed to be used with today’s long-life and synthetic motor oils. “[That is] mostly due to blending of synthetic media with cellulose or fullsynthetic media.” Affinia’s Covington explains that as engine designs and oil blends have moved to longer change intervals, “the filter design and materials are modified to accommodate longer service intervals. Higher durability filter media, gaskets, seals, and adhesives are used to withstand longer periods of operation in high-temperature motor oil and acidic conditions.
JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
“
Brands by major filter manufacturers are backed with engineering and manufacturing expertise to provide the proper design for the intended application, driving conditions, and oil drain interval.
”
– EDWARD COVINGTON, VP GLOBAL QUALITY,
AFFINIA GLOBAL FILTRATION
Mahle’s McKnight adds that what really sets a premium oil filter apart is the filter media. An OE-quality filter will have filter pleats that are organized more closely together and are very even in appearance. This design is made to ensure an optimal oil flow through the filter material. A lower quality filter’s media will have fewer pleats and less filter media. Because there is less filter media, this can create a situation where there is a higher pressure drop across the filter and for the filter to collect less contaminants. “Brands by major filter manufacturers are backed with engineering and manufacturing expertise to provide the proper design for the intended application, driving conditions, and oil drain intervals,” Covington says. “Ninetynine per cent product coverage for vehicles in operation, product availability through the distribution channel, catalogue and application support for new applications, obsolescence or slow-moving inventory protection, factory-trained field sales support, and engine repair warranty protection are standard for major brands by a filter manufacturer. Choose a brand that has stood the test of time and continues to offer the appropriate product and service needed to protect the customer’s trust in an ever-changing industry. Vehicle owners are expecting the service provider to recommend what is needed, nothing more or nothing less. Choosing the correct filter based on how they drive will provide the right level of protection for the oil and filter change interval.” JN 13
cover feature |
BY STEVE PAWLETT
WARE’S AUTOMOTIVE AND INDUSTRIAL SUPPLY
2016 JOBBER OF THE YEAR
OLD-SCHOOL CUSTOMER SERVICE
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Back then, rush hour in Acton was when the light changed and both cars came out.
”
– JIM WARE
wins THE DAY J
im Ware, with his sons Tim and Dave and their staff, work very hard to provide unbeatable service, and it shows. Just ask their customers. “They go above and beyond what other jobbers do,” says Jason Maderios, owner of Jay’s Automotive in Hillsburgh, Ontario. “If I need a part they will find it for me, and in some cases, if I find it and it’s out, say, in Brampton, they will still pick it up and deliver it to me, and there is no money in it for them. No other jobber goes above and beyond like they do. I have often needed a five-dollar part to finish a job and I will call them and they will send the driver all the way out with that five-dollar part. I feel bad doing it, but I need the part to complete the job and they understand that. Since moving out to Hillsburgh, I have dealers who refuse to deliver to me because I’m 20 minutes away, but Ware’s is there for me continued on page 16
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www.autoserviceworld.com | JOBBER NEWS / JULY 2016
At NAPA We’re Dedicated to Helping Our Partners Win Every Day
A Big Tip of the NAPA cap to Jim, Dave, Tim and Staff of Ware’s Automotive & Industrial Supply From your Friends and Extended Family at NAPA Canada www.napacanada.com
cover feature | Ware’s Automotive and Industrial Supply | 2016 Jobber of the Year
“We try very hard to offer unbeatable service by getting the parts to the service providers quickly and getting them what they need.” – JIM WARE
Ware’s Automotive and Industrial Supply provides unbeatable customer service. Jim Ware (centre) and his sons Tim (left) and Dave (right).
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whenever I need them. They will be my main jobber for life.” Jim Ware began his journey in the automotive industry as a licensed mechanic before moving into the aftermarket at the supplier level, working for Monroe for more than a decade. He then decided it was time to put roots down in his home town, so he acquired a small jobber store in Acton, Ontario, in 1994. “Back then, rush hour in Acton was when the light changed and both cars came out,” jokes Ware. Together with his sons Tim and Dave, and a very dedicated staff, Ware’s Automotive, a NAPA Associate, took a modestly performing operation and
turned it into a success by focusing on customer service. “It comes down to the things you do for your customers,” explains Jim. “We try very hard to offer unbeatable service by getting the parts to the service providers quickly and getting them what they need. We have three runs to the city, for both automotive and industrial pickups, and three runs from the NAPA distribution centre, and we have five delivery drivers at each location. If the part isn’t on our shelf, we’d better get it and deliver it to our customer within the hour!” “They are always out here in Rockwood – anytime we need a part it’s delivered, big or small, it doesn’t matter; they always
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
look after us,” says Terry May of T and A Automotive in Rockwood, Ontario. “Ware’s Automotive is our first-call jobber. One of the reasons we moved jobbers was because the others would never send a rep out or deal with any problems. Ware’s has the NAPA reps for all areas, so if we have a problem they will come out and help us solve it. They come out and talk to us quite often. It’s so much better than dealing with someone who says their product is good but never comes out to see you. You get that good feeling that you are a valued customer when they take the time to come out and talk to you. That counts for a lot these days.” “We know we have to keep parts moving, because that customer has a truck sitting on the hoist and he needs to get that next vehicle in, so [waiting] slows down everyone’s process,” explains Tim. “If a shop orders brakes, we recommend they order everything and return what
they don’t use. I’d rather have everything there than have them call back for something they missed.” “Well, there is just everything good to say about Ware’s Automotive,” says Jim Hume of Jim Hume’s Automotive. “I have dealt with Ware’s for at least 20 years. If we have any issues where there are concerns with warranty work, for instance, it is dealt with very quickly. If we have any sort of repair problem, I can reach out to them and if they don’t have the answer themselves, they will bring in one of their NAPA reps. Whether it’s for the cooling system, brake system, suspension, or electrical system, they always have the answers.” “They look after us right away. There are never any disputes,” continues Hume. “Their delivery service is fantastic. They come up here quite often. Some days they are up here at least 10 times, and it’s a 15-minute drive but the distance doesn’t
matter to them. If we need the part, they are here with it as soon as they can be. If they say they are going to be here for 10:00 a.m., they are here at 10:00.” The Acton operation has outgrown its building three times, and Ware’s automotive expanded into nearby Georgetown six years ago. Most recently, it added industrial lines, with assistance from Modern Sales and the addition of an industrial sales specialist to its staff to expand its offerings. “Modern Sales has been extremely helpful in our expansion into industrial supplies,” adds Tim. “The way suppliers have changed over the years, you need to have the volume to get the pricing. We have a lot of competition from all around us coming in here, so we have to be competitive and provide the best service to our customers,” explains Jim. “When I bought the original store, we had $65,000 continued on page 18
BE SYSTEM SMART 0 1 02 1 2
9 0 1 5 6
9 0 91 0 1
9 0 91 0 1
9 0 91 0 1
0 01 1
INSPECT
100K km
REPLACE
150K km
The best way to prevent system failure and customer come-backs is to Be System Smart. Inspect the serpentine and timing systems at 100K kilometers and replace worn components at 150K kilometers, or as advised by the manufacturer.
Proud Supplier to WARE’S AUTOMOTIVE JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
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cover feature | Ware’s Automotive and Industrial Supply | 2016 Jobber of the Year
in inventory and today we are sitting at $600,000 in inventory in the Acton store. “Our industry has really gone through a lot of change. I remember the days when $100,000 in inventory worked and you placed your order by hand and the next day the service provider got his parts order and that was okay. Now, no one will wait more than an hour for a part. And if you don’t have it, you better be in the city to get it.” “They aren’t the cheapest for parts, but their service makes up for it by quite a bit and then some,” says Dave Hassell of Hassell’s Automotive. “We are in a fastmoving business so we need to have the parts as fast as possible, and they have to be the right parts, and we need to know that the jobber is working on our behalf and is concerned about us getting the right part at the right speed. He is as responsible as we are, like a partner.” “We’ve had issues with a defective part
and we had to do labour, and Ware’s has helped us with it,” continues Hassell. “If there are parts we need right away, Ware’s will send someone to get them, even though it’s a losing cost for them in gas and time. They are always there for us. I deal with Tim all the time. They have done well in hiring all the right people – they have great staff.” When it comes to managing his staff, Tim says the number-one thing is that they enjoy their work. “If you’re not having fun in your job, you shouldn’t be there,” explains Ware. “In our store culture, everybody enjoys everybody. Our employees work for each other. Nobody throws anyone under the bus – we all stand behind each other, and that goes a long way.” When Ware’s decided to open their second store in Georgetown, they applied the same old-school customer-service approach. The service providers in
Georgetown had not experienced the Ware’s approach to service, so when they opened, they were able to build a successful business pretty quickly. “When I started out in this business as a licensed mechanic, I had a shop in Georgetown for three years, so when we decided to open the second store in Georgetown, I knew a lot of the customers from when I was down there. This gave us a bit of a start because I could talk to people I knew,” says Jim. “The biggest concern we had in Georgetown was inventory. Some of our predecessors hadn’t carried much inventory, and they let the repair shops sit and wait for parts. In today’s market they need it now, no questions asked. So we made a commitment when we went in there that we would put $500,000 of inventory in there, and that was the only way they would even talk to us.” “To this day we have maintained
Modern Sales Co-op and All of Our Members Are proud to have Ware’s Automotive and Industrial Supply, 2016 Jobber of the Year, as a Member
www.modernsales.ca 18
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
that. There is a lot of competition in Georgetown. We have every price-cutter there is coming in trying to compete with us. Some guys will drive miles to sell cheap parts. But it costs money to run a vehicle. If you are making 30% on a $10 economical rotor versus 30% on a $30 quality rotor, your cost to run that rotor to the customer is still the same,” explains Jim. “We have a lot of competition at both locations, but I think because we are there, and we have the inventory, and we get it out to them quickly, that’s why we win.” This approach got Ware’s Automotive in the door, and they just grew from there. “Our inventory in Georgetown is now over $750,000. We just continue to grow the inventory in order to support and back up what we said we would do. If you make a commitment to somebody and stand by that commitment, eventually it comes around. It’s a nice town to be in because
there is lots of opportunity,” adds Jim. Georgetown has experienced considerable growth due to an expanding population base, while Acton is still more of a quiet, slow-growing farming community, stocked primarily with pickup trucks. They found the parts needs were quite different between the two stores, even though the towns are only 20 minutes apart. “When we bought the Georgetown store, I thought we could just ramp up the inventory that we had in Acton and apply it to the Georgetown store. But that didn’t work. There are more imports in Georgetown and more pickups in Acton. Although there is some melding going on, as we are now seeing more imports in Acton,” adds Jim. “We utilize NAPA’s MIC (Marketplace Inventory Classification) program,” explains Tim. “They do our inventories based on the car population in our
territory. We review this every month. It tells us what to get rid of and what to bring in. Before this, we were getting to the point where we were outgrowing our bricks and mortar. We can only carry so much inventory logistically, so we have to have the right inventory.” Acton has two counterpeople and Georgetown has three counterpeople and one automotive salesman, and each store has five drivers serving their area. “We probably don’t do more than a 30-km radius, otherwise you get too spread out. We cover Acton and go to Rockwood and Hillsburgh, and our Georgetown store goes the other way. And we have a couple of customers in between that we handle. The miles we put on our vehicles are unbelievable. Most days those trucks don’t stop. They come back, load up, and go again. It’s very costly to do business today compared to what it was when I continued on page 20
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first started in this business. Everyone wants the parts now. In the early days the next day was fine, but not anymore,” says Jim. Tim manages sales and marketing, while Dave looks after the operations of both stores. Ware’s also puts on customer appreciation lunches and barbecues. “We bring our customers in a couple times a year to see what we have that’s new. There’s no better sales tool than having customers come through our door and walk down an aisle and say, ‘I didn’t know you carried that,’” says Ware. Ware’s puts a lot of importance on regular customer contact. “The typical sales call has changed,” explains Tim. “It’s not just a matter of doing a stock order, it’s a matter of how can we help your business, and the NAPA programs are very advantageous. We really need to see them twice: once to do their stock order and take care of any problems they may have, and the second one is to sit down and talk about their business. We look at our customers as our business partners. If they are not there, we are not here.” Jim continues, “Over the years we have done several trade shows, some in conjunction with other local NAPA jobbers. The last one we did was two years ago on our 20th anniversary. We held it for both stores and we had a tremendous turnout and tremendous support from our suppliers.”
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www.autoserviceworld.com | JOBBER NEWS / JULY 2016
Ware’s Automotive and Industrial Supply | 2016 Jobber of the Year
Avidly involved in the communities where they are located, the Ware family has echoed a key aftermarket pillar with strong support in the fight against cancer, helping to raise more than $50,000 last year alone through a Paul Murr charity golf tournament. Ware’s Automotive exemplifies the qualities that the aftermarket prizes in its jobbers: community service, industry involvement, and community commitment. “I grew up here in Acton, so I went to school with a lot of my customers, and this has helped me to develop good relationships with them. It’s all about developing a solid relationship with your customers,” says Jim. Looking ahead, Jim sees more golfing in his future. “My role will change a bit, and the boys will eventually take over the business. I love this business. It’s been good to me. I’ve seen every side of it, from having my own shop to the manufacturer side and then as a jobber. To me it has been really interesting and I have developed a lot of long-time friendships. The automotive industry is a fraternity that once you’re in, it’s really tough to get out of it. “I love the industry and I love to see where it’s going. I will always stay in contact. I may not be in the store as much, but I will stay in contact with the industry and follow the changes as they happen.” As for the future for Ware’s Automotive and Industrial Supply, Tim and Dave say they are always open to expand into another store if the opportunity arises. “We have way too much fun in this industry, and we are not afraid to expand on our store base.” “There’s a reason why they were nominated: their service is second to none,” says Mike Adema of Jakes Automotive in Acton. “They are my number-one jobber. I won’t stick with a jobber that can’t provide the level of customer service I get from Ware’s. When you’ve dealt with someone like Ware’s with that high level of service for so long, you kind of expect that’s the way things are going to be. If I had to deal with another jobber who isn’t at that level, things would not turn out well.” JN JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
Congratulations Ware’s Auto and Industrial Supply 2016 Jobber News Jobber of the Year From the following proud partners:
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market tracker | DIY trends
BY TOM VENETIS
THE GROWING THREAT OF
Asbestos he Canadian aftermarket is slowly waking up to the realization that asbestos is still coming into Canada in the form of imported brake friction products – and the volume at which it is entering the country continues to grow. According to recent Canadian media reports, Statistics Canada reported that imports of asbestos-related items increased to $6 million in 2015 from $4.9 million in 2013. The reports suggest that the majority of these goods are from asbestos brake linings and pads, valued at some $3.6 million in 2014. Asbestos was once a commonly used material in a wide range of products in Canada, including floor tiles and thermal/ electrical insulation; products used in the construction of homes, hospitals, schools, office towers and apartment buildings; and automotive brake friction. Asbestos in brakes provided a means for better heat distribution and noise reduction. However, asbestos has a long history of causing health issues to those who are exposed to it. Long-term exposure can potentially lead 22
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What comes as a surprise to Canadian automotive technicians is the Canadian government does not currently prevent the importation of brake friction products containing asbestos.
”
to two kinds of cancers: cancer of the lung tissue, and mesothelioma, a cancer of the membrane that surrounds the lungs and other internal organs. Since the 1980s, there has been an ongoing effort to remove asbestos from use in construction and manufacturing of
products, including in the manufacture of brake friction. While domestic makers of brake friction in Canada and the United States have moved away from using asbestos, this has not stopped foreign makers of brake continued on page 24
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
Photo: Arthur Carlo Franco, photoggin – iStockphoto
T
#AAPEX16
market tracker | DIY trends
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Long-term exposure to asbestos can potentially cause two kinds of cancers: cancer of the lung tissue, and mesothelioma, a cancer of the membrane that surrounds the lungs and other internal organs.
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to indicate that asbestos has been used. For members involved in vehicle recycling, the issue of asbestos only came up recently when the government of Ontario began consultations last year looking at amending the Environmental Bill of Rights (EBR) and proposals regarding standards for end-of-life vehicle processors. “We always had a voluntary code
of how our members can depollute a vehicle,” says Fletcher. “We have taken [that code] to the government as to how vehicles can be handled, how to safely handle the removal of ozone-depleting substances, the collection of fluids and such. [The government] put asbestos on the table about a year ago, and our assumption was that [asbestos] had
Before You Start Consult the Joint Health and Safety Committee’s asbestos assessment for information about exposure in your workplace. While You Are Working
Z Make certain your work Z Remove dust using area is well ventilated with a mechanical local exhaust, or wear a supplied-air positivepressure respirator; if necessary, consult a hygienist or a ventilation engineer to make sure that you have the proper exhaust system.
Z Keep your hair covered and wear protective clothing such as coveralls that you can take off to avoid carrying the dust with you.
a vacuum equipped with a high efficiency particulate air (HEPA) filter; do not bang the drum to remove dust, or blow dust out of brake drums or clutch housings with an air line.
Z If a vacuum is not available, wet the assembly with a wetwashing unit, lowpressure water, or gentle spray; then wipe with a clean, damp rag and dispose of the used
rags in a plastic bag while they are still wet. Carefully close the bag without disturbing the asbestos.
Z Collect washings and dust on floors and around equipment and dispose of them using a vacuum with a HEPA filter or by wetsweeping. Z Use a slow-turning lathe to reduce dust instead of grinding brake linings.
Information provided by Health and Safety Ontario, “Replacing Brake Drums, Shoes, or Pads”
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Currently there are no specific safety blitzes focused on asbestos exposure during vehicle brake replacement and repair inspections; however, ministry inspectors may look for this hazard when they visit repair garages for any reason,” says the Ministry of Labour’s Deline. “During these visits they take enforcement action if they determine that employers are not complying with the Occupational Health and Safety Act (OHSA) and its regulations regarding worker exposure to asbestos. Under OHSA, there are three regulations addressing occupational exposures to asbestos: O. Reg. 490/09 – Designated Substances; O. Reg. 278/05 Designated Substance – Asbestos on Construction Projects and in Buildings and
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
Photo: WILLSIE – iStockphoto
friction from doing so. This has meant that asbestos is still finding its way into brake friction products coming into North America. “We can tell you that the Ministry of Labour has been aware of brake pads with asbestos being imported into Canada since 2012,” says Janet Deline, a spokesperson with the Ministry of Labour. “According to Statistics Canada reports, more than $2.6 million worth of brake pads containing asbestos entered Canada in 2011, with more than half imported into Ontario. While the ministry does not track the use of aftermarket brakes in this industry, we are aware that these products pose an increased risk of asbestos-related diseases for auto brake mechanics.” What may come as a surprise to Canadian automotive technicians is the Canadian government does not currently prevent the importation of brake friction products containing asbestos. Rick Jamieson, president and CEO of ABS Friction Inc., says he is not surprised that Canadian technicians are unaware; Canadians as a whole are not aware that products that use asbestos are still allowed to come into Canada. “The public thinks it is banned, and mechanics think it is banned, and the reality is it is not,” Jamieson says. “If it was banned in Canada, it would not be imported here.” Jamieson says that the reason why such products come into the Canadian market is simple – price. Brake fiction using asbestos in its formulation is sold as an inexpensive aftermarket brake product. Steve Fletcher, managing director with the Automotive Recyclers of Canada, says it has been some 25 years since asbestos was used by OEMs in domestically produced brake friction. However, Fletcher adds, an importer of brake friction products may not be aware that asbestos is in the products, because there is nothing on the product
R E P L AC E M E N T A S S E M B LY
already been phased out.” The amendments proposed for endof-life vehicle waste disposal included a range of contaminates that now have to be removed prior to the crushing or shredding of a vehicle. These contaminates include such obvious things as fuels, brake and steering fluids, coolant fluids, refrigerants, batteries, and tires. Amongst the things to be removed were brake pads containing asbestos (go to www.ebr.gov.on.ca and click the links to see the list of proposed products). “Right now, when we dismantle a vehicle, we are not going down to the brake pad level, and we are not cracking open the brake drum,” Fletcher continues.
“Ten years ago, we might have done so, as some of the parts could be reused. But the economics now make doing so not worth the effort. But under the new regulations, with the requirement to remove the brakes, you are now exposing us to a hazard that we were not exposed to before.” For technicians, the hazard comes from exposure to dust that can contain asbestos and can be released during a brake job on a vehicle. That can occur from a technician cleaning brake assemblies and clutch housings, grinding brake linings, and even sweeping floors. Health and Safety Ontario has listed a series of safe work guidelines to protect technicians from asbestos dust. JN
Repair Operations; and Regulation 833 – Control of Exposure to Biological or Chemical Agents.” Jean-Francois Champagne, president of the Automotive Industries Association of Canada (AIA Canada), says the AIA is working to have the government of Canada move toward banning the importation of products that contain asbestos. “There is no specific federal ban on asbestos, and we announced in a press release that we and others are asking for a complete ban on asbestos products,” Champagne explains. “We want to make sure our members understand the issue and the risk posed by asbestos, and taking all steps that are reasonably possible to make sure that they are not importing, selling, and installing and servicing products with asbestos. It means talking with your supplier and distributors, and talking to importers.” Champagne adds that any legislation proposed by the federal government needs to be structured in a way that not only stops products coming into Canada, but allows time to remove existing products from the marketplace and from vehicles. “The AIA would not endorse a plan that would suggest we pull all cars off the road and check what brake friction the vehicle has, and if asbestos is found, to remove and replace that friction right away. That is just not feasible. How you phase in such legislation is an important question.” The United States has been moving aggressively to tackle the problem, both at the state and federal levels of government. Recently, a memorandum of understanding was signed between the Environmental Protection Agency, the Environmental Council of the States, and the Brake Manufacturers Council that addressed the issue of copper in brake friction. California and Washington State had earlier passed laws to regulate copper in brake friction. Those laws effectively became an industry-side de-facto standard. As well as reducing copper in brake friction, asbestos and other materials are covered as well. The addition of asbestos will impact importation of brake friction that uses asbestos in its formulations. “A Department of Commerce report identified US$2.2 million in asbestoscontaining brake friction materials were imported into the U.S. in 2013; China accounts for more than half of those imports,” says Leigh Merino, senior director, regulatory affairs, with the Motor & Equipment Manufacturers Association (MEMA). “U.S. manufacturers do not use asbestos in their products, due to toxicity and continued on page 26 state laws. For example, in addition to reducing JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
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copper in brake friction materials, the California and Washington laws also required the removal of other constituents in brake pads, including asbestiform and other materials, by the years 2014 and 2015, respectively. “Furthermore, the Toxic Substances Control Act (TSCA) Reform legislation currently being considered in Congress would provide stronger EPA authority to regulate toxic chemicals already in commerce. MEMA and AASA have indicated industry support for stronger authority in this area as well as a renewed EPA effort to regulate asbestos, particularly in imported brakes.” Merino adds the government-industry collaboration on the voluntary “Copper-free Brakes Initiative” memorandum of understanding, which is based on the timelines and requirements of California and Washington, was necessary to establish a national-level program to ensure consistency in reporting requirements and recognition of the industry’s compliance with those laws. “Brake manufacturers, vehicle manufacturers, and other key stakeholders have fully supported the efforts,” Merino continues. “California and Washington State have enforcement authority clearly articulated in their respective laws where they can assess civil penalties for parties that knowingly violate the law. Civil penalties can be levied against not only brake friction materials manufacturers, but also to distributors, retailers, and vehicle manufacturers.
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www.autoserviceworld.com | JOBBER NEWS / JULY 2016
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new products | Full Function Scan Tool The Snap-on Ethos Pro is the latest addition to its line of full-function scan tools. Ethos Pro comes standard with OEM-specific coverage and functions such as functional tests, codes, data, service resets, bidirectional controls, and adaptions and relearns to validate repairs and finish the jobs that others only start. It includes OEM-specific coverage for over 100 systems and 47 domestic, Asian, and European makes for vehicles as far back as 1981. Ethos Pro also covers newer technologies including TPMS, hybrids, body control, suspension, collision avoidance, and infotainment systems. Snap-On www.snap-on.com
Continental VDO TPMS Catalogue Continental has released its new 2016 VDO TPMS Replacement Parts Program catalogue. In addition to the latest application validations for VDO Redi-Sensor Multi-Application TPMS sensors and VDO TPMS OE sensors and service kits, the catalogue features an application section and an illustrated Buyer’s Guide with individual listings for Redi-Sensor multiapplication sensors, OE sensor assemblies, and service kits. Also included are torque specifications, installation tips, service kit guide, make/model index, OE cross-reference, Redi-Sensor cross reference and product information and contact information. The new catalogue showcases the latest application validations for the VDO Redi-Sensor MultiApplication TPMS Sensor Service Solution. Redi-Sensor SE10002A increases coverage for over three million additional vehicles, while fully retaining all of the applications of SE10002. Continental www.vdo.com
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www.autoserviceworld.com | JOBBER NEWS / JULY 2016
advertiser index | ACI-Agri-cover Inc ..................... 28 www.accesscover.com
Philips Classic Car Lighting Catalogue The new Philips Classic Car Lighting Catalogue offers a full range of replacement lighting for domestic and import cars, SUVs, light trucks, and vans from model years 1969 to 1998. Classic car enthusiasts and collectors will have access to both Philips standard replacement and upgrade headlight bulbs. The catalogue’s application listings are presented in trilingual format. The Philips Classic Car Lighting Catalogue showcases Philips CrystalVision ultra sealed beam headlamps that bring the bright, white look of xenon bulbs to vintage and highperformance vehicles. The catalogue also includes listings for Philips Vision LED lights that are a direct replacement for a wide variety of standard incandescent interior and exterior bulbs. Philips Vision LED lights provide a bright, white hightech look and are guaranteed to last 12 years. In addition to lighting products, the catalogue also features the Philips Headlight Restoration Kit with UV protection, which can restore old, cloudy headlight lenses to like-new condition in less than 30 minutes. Philips www.philips.com
Aisin Group ............................... 10 www.aisinaftermarket.com
AAPEX...................................... 23 www.aapexshow.com Automotive Industries Association of Canada................................. 27 www.OEM2TECH.com AutoServiceWorld.com ............... 26 www.autoserviceworld.com
Chevron Canada Limited .......... IFC www.HavolineProDS.com
Continental ContiTech ............. OBC www.contitech.ca Federal Mogul Motorparts Canada ....................................20 www.fmmotorparts.com FRAM Group(Canada) .............. IBC www.fram.com
Gates Canada ........................... 17 www.gatescanada.com
Modern Sales Co-op ................... 18 www.modernsales.ca
MOPAR ..................................... 11 www.moparrepairconnection.ca
Plastic-friendly MAF Sensor Cleaner Penray Inc. has introduced its new cleaner for mass air flow (MAF) sensors. The delicate fine wire that senses the flow of air entering the induction system is subject to contamination. Dust, oily vapours, and other contaminants can collect on this very fine wire, forming a layer of insulation that can cause it to provide inaccurate information to the car’s engine management computer. Results of a contaminated MAF sensor manifest themselves as rough idle, hesitation, poor gas mileage, and in many cases, the appearance of a Check Engine light. The cost of new replacement MAF sensors can run as much as $400 or more. So the use of an effective cleaning product is a viable alternative and a valuable service to the customer. The attachment point for the Mass Air Flow Sensor is usually a small plastic clip. Often aggressive solvents, like typical carburetor cleaners, can damage delicate plastic pieces. Penray 2520 is specially formulated to effectively clean the sensitive component without harming plastics, coatings or adhesives. Penray www.penray.com JOBBER NEWS / JULY 2016 |www.autoserviceworld.com
NAPA ....................................... 15 www.napacanada.com
NGK Spark Plugs Canada Ltd ......20 www.ngksparkplugs.ca
®
Promax Auto Parts ...................... 5 www.autopartsdepot.ca
Schaeffler Group USA Inc ............. 8 www.Schaeffler-Aftermarket.us
Specialty Sales & Marketing ........ 19 www.specialtysales.ca
Tenneco Automotive ................... 25 www.monroe.com
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money & management |
O
ne of the biggest hurdles to successful selling is the fear of rejection. So why are so many salespeople afraid or unable to deal with rejection? No one likes to be rejected; however, the most successful people in business are the ones who know how to deal with it. They intuitively understand that when you are calling on companies or individuals to solicit new business, not everyone is going to want to see you or do business with you. But that does not mean that rejection has to be a part of the process. The key to moving forward is all about how you perceive the situation when you are turned down. Rejection hits hardest when you are taken by surprise. For example, a flat-out remark such as “I’m not interested” can throw anyone for a loop, and cause you to stumble and give up. But what would happen if you were not taken by surprise? My experience shows that when you anticipate that you may not score one hundred per cent all the time, you are not surprised by the fact that someone, somewhere, at some time, will turn you down. On the contrary, you will have anticipated some of the objections and prepared effective responses to deal with them. After all, a “no” is often nothing more than a slow yes. Having effective responses increases the likelihood of changing the prospect’s mind, but just the fact that you are prepared puts you in control of the situation. Control is essential. Combining a lack of control with a fear of rejection is like throwing lighter fluid on a flaming barbecue. On the other hand, control creates an environment where you can be confident and effective. Some people look at objections as making you feel worse. This should only occur when you are unprepared with effective responses. But here too, perception is everything. A lot of people recoil at the sound of an objection or question, even though these are a normal part of the buying process. How often have you asked questions in order to make BY MARK BORKOWSKI
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an intelligent buying decision? Questions are a sign of interest, and you should embrace them as an opportunity to promote your product and service knowledge. Objections give you valuable insights too. An objection such as “it’s too much money” is often a reflection that the value of what you are offering was not made clear. Anything is expensive when there is little perceived value. If you are clear on the value you bring to the table and you still get a lot of comments on price, you might be targeting the wrong audience. If someone tells you they are not interested, find out why and then respond to their real concern. An effective response to a question or objection escalates the trust factor, and the faster you earn someone’s trust, the shorter is your sales cycle. Just look back at the last time a salesperson didn’t have an answer to one of your questions. Weren’t you likely to take a pass? And when someone gave you a terrific answer, and delivered it passionately, weren’t you more likely to make that purchase, or at the very least take less time to make that decision? It may sound simple, but who said sales has to be complicated? Perception is everything. Even in a worse-case scenario, where your objection or question handling does not result in the customer wanting to see you or buy something, perception is the key. You can look at the situation as a failure, or as a learning experience. If it’s the latter, and you apply what you learned before your next sales call, you will have instantly reduced the likelihood of being turned down a second time. Self-assessment is key. If a telephone sales call or a face-to-face encounter does not work out for any reason, the first question to ask yourself is “Is it them or me?” If it’s them, move on and don’t let it concern you for another moment. But if the problem lies with you, fix it before the next sales call. When a sales call is perceived as one big learning experience, rejection takes a back seat. JN
Mark Borkowski is president of Toronto-based Mercantile Mergers & Acquisitions Corporation, a brokerage firm specializing in the sale of privately owned businesses. He can be contacted at www.mercantilemergersacquisitions.com
www.autoserviceworld.com | JOBBER NEWS / JULY 2016
Photo: Imagine Golf – iStockphoto
DEALING WITH REJECTION
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