Leaders in the Sale of Quality Mopar Parts
September - October 2010 Newsletter
MMG 2.0 ‐ The Mopar Masters Guild takes on a New Look! By Steve Hofer ‐ Park Chrysler Jeep ‐ MMG Treasurer & Website Chairman Last January the Mopar Masters Guild and its executive board made the decision to update the Mopar Masters Guild website. This decision was made to increase ease of use and bring a clean look to the groups website. As part of the process the group would also update the Mopar Masters Guild Logo. Having been impressed with the work performed on Jim Jackson’s website, www.learnstuffnow.com, the Mopar Masters Guild executive committee talked with Jim about the designer of his sight and chose to use the same individual. James C. Jackson (Jamie) has been working with the Mopar Masters Guild to make the desired changes. James is a freelance media designer based in Orlando, FL. Over the last 10 years his clients have included the Orange County, FL Government, Walt Disney World®, the Mennello Museum of American Folk Art, Focus Training, Realtors® & real estate offices, & numerous small to medium‐sized businesses. A recent honor received by James was his winning of a design con‐ test for the ACLU in March of 2010. It was James’ background in both print media design as well as web design that made him a perfect choice for the group. You can find out more about James and his projects by visiting his company’s website http://yummediadesign.com .
I would like to introduce you to the newly designed Mopar Masters Guild logo. James walked us though the process and was able to help us merge artistic design into a logo that represents the group. Clean lines, a modern look and masculine, these are things that are also be‐ ing incorporated into the website. Over the coming month we will be testing and completing our website project. This website will incorporate many new things. The improved functionality will include: All past newsletters archived and in a flip‐page format Recent news and blogs A formal supporting vendor page The ability to join and pay dues online A member directory for paid members listing your stores logo and business information These and other enhancements are sure to increase traffic to both our forum and website. I would like to thank James and the many members that have contributed to the future of our website.
Mopar Masters Guild Magazine
September - October 2010
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A Message from the desk of Dan Hutton Tom O’Brien CDJ Mopar Masters Guild President One of our main goals at our dealership is to increase retail service traffic this year, with the Car Parc decreasing in almost every market we need to grow this business now. We signed up for Express Lane to help increase our service traffic. Express Lane offers fast, quality oil changes that your customers want, it also helps to make consistent and accurate vehicle inspections in a timely manner. This helps your writers sell what is needed for your customer’s vehicle. In our dealership Express Lane parts sales such as air filters, wiper blades and batteries are up over 75% since we signed up in May. This is something that Chrysler would like to install in all Chrysler Dealerships by the end of next year. I recommend that you use your Mopar One funds and sign up for Express Lane. NADA 2011 is just around the corner in San Francisco. Chrysler training has gone back to the two live performance group classes for 2011. We will go back to the format of having performance groups at NADA in San Francisco. Mark Skinner has done a great job getting our meeting rooms setup in San Francisco. We will be meeting at the Omni, San Francisco Hotel on Friday February 4, 2011 and Saturday February 5, we will be hav‐ ing a super bowl party on February 6 then performance groups will start on Monday February 7th and end at noon on Tuesday February 8th. I want to remind our members and vendors about making their room reserva‐ tions at the Omni as soon as they can so that we can ensure that we are going to be able to fulfill our commit‐ ment towards our guarantee for five nights beginning February 3rd to February 8th. I would encourage you to make the trip to San Francisco for five days of sharing ideas with top parts managers in the country, meeting our vendors, and discussing all the new model changes for 2011.
Dan Hutton
Also In This Issue NADA 2011 San Francisco Serenity in San Francisco Performance Group Meeting in St Louis MMG Meets with Snap-On & OEConnection “After Sales” Market Potential OEConnection UPS FenderBender Benner Auto Advisors Mopar Funny Car Driver Wins at Dallas Famous Quote
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MMG Selects Guest Speaker for NADA Is Every Customer a Good Customer? USAC’s “Generation Next” Tour Supporting Vendors ADP Reynolds & Reynolds Tracy Industries Corporate Billing, Inc Hire Any Lazy Idiots Lately? State Farm Intros new Rating System 2011 Mopar Masters Guild Committees
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Mopar Masters Guild Magazine
September - October 2010
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NADA 2011 - San Francisco As most of you already know our next MMG meeting is being held in San Francisco for 2011. As those of you who attended our Performance Group meeting in St. Louis know, we had some initial difficulty with scheduling our meetings. We had originally hoped to be able to book our event at the Parc 55 which is a Hotel that many of us are familiar with from events held there in the past. However, NADA has a new rule that does not allow NADA sanctioned Hotels to hold meetings or other gatherings during Convention hours. (Which means that we would not have been able to hold our meeting on Saturday, at the Parc 55.) The decision was made in St. Louis to find a "Non" NADA Hotel to host the MMG for 2011. I am happy to announce that we have made arrangements, and are now booked at the Omni San Francisco Hotel. We were able to book a very nice space for our meetings, and we have a block of rooms saved as well. The room rate is very reasonable for San Francisco at $219 + tax per night. You can view the Omni on their website, which is http://www.omnihotels.com. The block will be reserved under the Mopar Masters Guild, and we should have a direct link to their website set up soon, which I will send out via e-mail, for everyone to make their reservations easily. We have given the Hotel an estimate of 40 rooms for our event. They will allow us an 80% attrition which means that we can go above or below that number and still be within our agreement. The $219.00 rate is available for our group up until 3 weeks before our event. I want to make a strong point to our members and vendors about making their room reservations at the Omni as soon as they can so that we can ensure that we are going to be able to fulfill our obligation toward an occupancy guarantee of 30 rooms for five nights beginning Feb 3rd until Feb 6th, so the earlier the better on making your room reservations. The official Drop Dead Date is January 3, 2011, but I would like to see the majority of the reservations made by November 30th. So, our tentative schedule is to arrive on Thursday evening February 3rd and hold our meetings on Friday and Saturday February 4th and 5th. Sunday will be an open day hopefully with our Super Bowl Party. (See below) Monday and the first half of Tuesday will be our Performance Group Meetings. While we were in St. Louis, we were fortunate to have Doug Johnson the After Sales Training Manager for Chrysler Academy, attend our Performance Group meeting. Doug informed the group that beginning in 2011, the requirement will be to attend 2 (two) Performance Group meetings per year. So it was discussed that we should hold our Spring PG in conjunction with our MMG meetings in San Francisco. More news to follow on the Performance Group. In addition to our meetings we will also be hosting our Friday Night reception. We always try our best to make this event a memorable one for our members’ wives and of course for our supporting vendors. (Who without their support, these meetings would not be possible). Since we are going to be in SF during Super Bowl, Dan has asked me to also find a place where we can host a Super Bowl Party, so I am working on that, too! Our Friday night event is still up in the air as far as what we are going to do, specifically. We are working with our SF Catering contact about possibly holding another event at the John Pence Art Gallery on Friday night which will have some sort of "Wine Theme", perhaps. We held our Saturday night Farewell dinner in this same location, the last time we were in SF. Mark Skinner - Power Chrysler - Jeep - Dodge NADA 2011 Planning Chairman
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September - October 2010
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Mopar Masters Guild Selects Guest Speaker for 2011 Annual Meeting By: Stephen Hofer & Dr. Jody Janati
Difficult communication situations affect many of us daily and most of us understand that conflict is inevitable. Training on how to recognize and deal with such situations is a critical part of becoming a successful manager. It is for this reason the Mopar Masters Guild Executive Board has decided to include such training during this year’s annual meetings held around the NADA (National Automobile Dealers Association) convention. We encourage each of our members and their dealer principals to attend and participate in what is assured to be an eye opening experience. After an extensive search we have chosen Dr. Jody Janati to lead us in an interactive discussion. Dr. Janati will be speaking about Resolving Workplace Conflict. She will discuss how to read people on a behavioral level to better navigate and manage difficult interactions. Effective communication promotes healthy boundaries and can transform conflict during tense conversations. There are a number of conflict management workshops offered each year, yet rarely does the facilitator tell participants exactly what should be said or done. Dr. Janati's talk will specifically address, "What do I actually say and do" when dealing with people during difficult situations to avoid destructive patterns and gain a win-win outcome. Participants can expect to laugh and have fun while learning about human behavior and attaining step by step practical solutions for dealing with difficult people. Dr. Janati has an Ed.D. degree in Organizational Leadership, and a M.A. degree in Speech Communication. She has taught communication based classes for 14 years and currently teaches in the Communication Studies Department at the University of Minnesota. She offers a variety of public and professional workshops on conflict reduction tactics and effective interpersonal communication skills throughout the year. During her academic career she has held a number of administrative positions in higher education, which include college admissions representative, director of student services and department chair. She has also taught at a number of colleges in the Twin Cities metro area. Courses include: public speaking, conflict and negotiation, small group communication, success strategies, organizational communication and interpersonal communication. As a consultant, Dr. Janati provides Professional Development Training, One on One Consulting/Coaching, Professional Speaking and Staff Training. For more information visit: www.communicationinnovation.vpweb.com jodyjanati@yahoo.com 651.210.2246.
Mopar Masters Guild Magazine
September - October 2010
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Serenity in San Francisco After a long day at the NADA convention in San Francisco this February, why not take time to relax? It may be hard to find respite at Pier 39, crowded with tourists, or at the Golden Gate Bridge, sitting in traffic. So where can you go for some peace and quiet? San Francisco resident Raynell Boeck tells you where to find it in Peaceful Places: San Francisco. In the book, she lists 110 places to find tranquility, highlighting gardens, restaurants, museums, historic sites, churches, libraries, bookstores, vistas, and more. Many of the sites she mentions are free. Here are just a few spots she recommends.
Alamo Square Park (Bounded by Fulton, Hayes, Scott, and Steiner streets) Caption: “Painted lady” Victorian houses face Alamo Square Park. (photographed by Raynell Boeck) Colorful Victorian homes often spring to mind when people think of San Francisco neighborhoods, and from this hill overlooking the city, you have a front-seat view of Postcard Row. A rose garden and the surrounding historic district also draw visitors to this park.
Bix (56 Gold Street, 415-433-6300) While you’re in San Francisco, you might want to sip a nightcap at the mahogany bar at Bix. Boeck recommends pairing oysters on the half shell or cheese-and-onion sandwiches with a sidecar or a Bix Manhattan. If you enjoy jazz, show up a little earlier for one of its nightly performances.
Grace Cathedral labyrinths (1100 California Street, 415-749-6300) Caption: The outdoor stone labyrinth at Grace Cathedral invites prayer and introspection. (photographed by Raynell Boeck) For a more spiritual experience, visit Grace Cathedral. Known as “the city’s church,” it features bronze doors that were cast from molds of 15thcentury Lorenzo Ghiberti’s Gates of Paradise. English carillons (bells) play music every hour. And the design of the cathedral, inspired by Notre Dame, also attracts tourists. But the pièces de résistance (Continued on page 6)
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are its labyrinths—one indoor and one outdoor. Gray terrazzo stone composes the outdoor labyrinth, which is surrounded by a garden and skyscrapers. San Francisco Museum of Modern Art rooftop garden (151 Third Street, 415-357-4000) The “sky-high oasis,” on the fifth floor of the San Francisco Museum of Modern Art, showcases sculptures from the museum’s collection. The works, which span the past five decades, appeal to both abstract and figurative tastes. A glass-enclosed pavilion lets museumgoers stay warm in the winter while enjoying the exhibit. A coffee bar offers espresso and desserts to accompany your visit. Café Claude (7 Claude Lane, 415-392-3505) If you’re looking for a Parisian café, you’ve found it. A bistro near Union Square, Café Claude serves up salade niçoise, roasted chicken, croque monsieur (French-style ham and cheese), and crème brulée in a laid-back setting. The prices are reasonable, and the food is delicious. Thursday through Saturday nights, a jazz band entertains the crowd.
San Francisco Art Institute (800 Chestnut Street, 415-771-7020) Caption: An inspiring vista unfolds from atop the San Francisco Art Institute. (photographed by Raynell Boeck) While you may think that going back to college could never be peaceful, you might reconsider after visiting this site. From the institute, sweeping views of Alcatraz and the city skyline come into view. Enjoy lunch at the cafe, or browse the Diego Rivera Gallery, which highlights the Mexican artist’s murals. This is the place to take pictures of the city’s landmarks.
San Francisco International Airport public art (Highway 101, 800-435-9736) If you arrive a little early for your departure from the city, you can take in some of the beautiful works of art at the airport. Paintings can be found in the lobbies and gate rooms of the airport; the International Terminal displays some pieces as well. In addition, the International Terminal houses the Aviation Library and Louis A. Turpen Aviation Museum. You can even survey exhibitions as you and your luggage travel along the people movers.
For 103 more ideas on places to visit in the San Francisco area, read Peaceful Places: San Francisco (Menasha Ridge Press, $14.95). Caption: Peaceful Places: San Francisco suggests 110 places in the city where one can find serenity. (courtesy of Menasha Ridge Press) Amber Kaye Henderson Project Editor Menasha Ridge Press 205/443-7985 205/326-1012 (fax)
Mopar Masters Guild Magazine
September - October 2010
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IS EVERY CUSTOMER A GOOD CUSTOMER? Before I get started, this article is not in direct opposition of the other article I’ve written for this edition regarding customer retention. (Pages 14-15) On the surface it might appear I’m saying two different things, but in reality to excel for our customers, we must make some choices, either consciously or subconsciously, to define our market. Rod Krueger (Mopar Master from Toledo, OH.) made a best idea presentation with a similar idea a few years ago in Stillwater, Minnesota at a Performance Group meeting. The idea fascinated me, but I have not done a very good job integrating it into the Benchmark way of doing business. In talking to Rod in later meetings, he has maintained the basic concept, even though tough times have probably made some border line customers valuable enough to be removed from his “fire” list. Without going deep into specifics of what constitutes a good customer or a bad customer, I think we at least need to consider the possibility that some customers may not be good for our overall business. I just read an article in Central Alabama’s Better Business Bureau’s newsletter covering this same topic; obviously this is something all types of businesses have to consider. Most small businesses are so eager to expand their customer base that they take on any customer, at any desired terms, whether good or bad. (I can’t help but think of all the dealers trying to sell parts at crazy discounts that can’t possibly be close to breaking even!!) We as parts managers need to understand that some customers may not be a good fit for our businesses. They may be more demanding than they are worth, or they may have needs that you can’t effectively provide. But here is the idea that brings it all full circle: They may have a negative impact on your ability to serve your other “good” customers that you should be servicing and making happy for a profit. For instance, every dealership needs to be in the mechanical wholesale business. Is your dealership going after the wrong customer, and in the process losing your ability to go after this business that only your dealership can effectively service? Some criteria for firing wholesale customers might be a combination of the following: prompt payment, return percentages, distance from your store, average invoice amount, discount rate demanded, etc. The list could go on. Another set of criteria could be developed for service department customers. Obviously we shouldn’t alienate customers. I would recommend that extreme caution be used and only after long discussions with upper management and then the customer should any action be taken. If a parting of the ways is in order, try to make it a mutual decision with your customer (remember – everyone buys cars!!). “It is true, while we can’t have all of the business that we would want, that there are some customers that we don’t want. In these very trying days of doing business, I have had to trim a few more people doing business with us. I have offered to sell parts to them COD because they are 60 days overdue. They end up going down the street getting credit from another dealer. We have not been the dealer getting stuck with delinquent accounts.” Rod Krueger – Yark Automotive CJD – Toledo, OH Submitted by: Marvin Windham Benchmark CJD
Mopar Masters Guild Magazine
September - October 2010
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Performance Group Meeting Held in St Louis This August many of the Mopar Masters Guild members found themselves in St. Louis Missouri attending a parts performance group. The meeting was part of the reintroduction of performance group training for Mopar training and certification. Tom Rice led the two day meeting and was also accompanied by Doug Johnson. Doug heads up the after sales training for the Chrysler Learning Center. We would like to thank both Tom and Doug for a great meeting. Many topics were discussed. One topic revolved around the potential training requirements for 2011. It is being discussed it could be a requirement for parts and service managers to attend two performance groups. This potentially new format could include one performance group with both parts and service managers combined and another with the two disciplines separated. The Guild is currently trying to work with Mr. Johnson to schedule the first of 2011’s performance group meetings. We are working hard to try to do this during our annual meetings held in conjunction with NADA. If this is accomplished it will mean the return of a format we enjoyed just a few short years ago. The combined trip to NADA and the performance group meeting also helps reduce travel time and expense for our dealers. Another topic of interest was frustrations associated with rejected MRA’s due to poor packaging. Over the past several months Mopar has been rolling out packaging standards processes in their parts distribution centers. This process is being implemented to reduce damage through the reengineering of poor packaging. It also means that beat up packages in the system will need to be cleaned out. This is all taking place in order to reduce damage and MRA claims. The frustration comes from the higher standards that Mopar is now holding dealers to. All parties seem to agree that improved packaging and reduced MRA’s will increase levels of service. The frustration and disconnect stems from the current parts in the system, including dealerships, that have damaged or poor packages. Several dealers have voiced concerns that it may not be fully understood the travel one Mopar part may take. For instance packages should be designed to withstand trips greater than from a PDC to a dealership. This is because parts are then often shipped to the end user via methods such as a dealerships delivery system, UPS, or many other carrier options. All parties agree that the reduction of MRA’s as a result of improved packaging is a good thing for our customers. However the added expense needs to be weighed. Two ideas that came up during the performance group to help dealers offset the cost of strict package standard included: Allowing dealers to convert return allowance into cash to scrap rejected MRA’s due to poor packaging Allowing us to purchase Mopar packaging or pay the PDC a fee for having to repackage a perfectly good part Either way the clear message is that dealers are here to support Mopar and are very willing to have discussions that will improve packaging through the entire network. Another important part of any performance group is the review of our financial information. Chrysler Academy introduced us to a new composite format. After some initial getting used to, it was clear that the revised composite was very helpful in the analysis. The group spent about a half of a day looking for opportunities and sharing ideas where and how we could improve our financial positions. The final day brought about a best ideas session. There were many great ideas presented, from accessory programs, website store fronts, and vending machines that distribute control shop supplies. There could be only (Continued on page 9)
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one winner. This year’s best idea was presented by Marvin Windham. Marvin introduced us to a delivery management system. I know that everyone in the group was very happy with the ideas that they were all able to take back to their stores. I would encourage all that attended the performance group to open up their desk and revisit their notes, look over their composite and review the best ideas. Most importantly pick up the phone and reach out to a new contact you may have made or ask a friend for help in an area you are struggling. The greatest accomplishments come through collaboration with others. Submitted by: Steve Hofer Park Chrysler Jeep
'Little E' Draws 245 Mopar .25 Midgets for USAC’s 'Generation Next Tour' Finale A spectacular turnout of 245 cars participated in this past weekend’s final USAC "Generation Next Tour" closing event for Mopar .25 Midgets at Tony Stewart’s newly-constructed "Little E" oval at the Eldora Speedway in Rossburg, Ohio. Competition in 17 different classes resulted in the crowning of USAC’s 2010 Mopar .25 Midget Champions, who will be honored at the USAC Night of Champions National Awards Banquet in Indianapolis, Ind. in December. The inaugural event on the brand-new Eldora dirt oval produced some great competition and welcomed teams from all over America. Class winners included Robin Shultz II, Michael Fanelli, Jacob Ernst, Kyle Lee, Hayden Sprague, Michael Atwell, Logan Crout, Tyler Shullick, Steven Reinacher, Jared Irvan, Cooper Clouse, Allessa Young and Bryant Dawson. The most diversified slate of quarter midget racing ever produced events at iconic facilities like the Indianapolis Motor Speedway, ESPN's Wide World of Sports Complex at Walt Disney World in Florida and Hoosier Tire’s Newton Park in Lakeville, Ind., as well as this weekend’s closer at Eldora. The 10-race series enjoyed National scope and recognition, from California to Florida and drivers from 20 different states scored class victories. For more information, visit http://www.usacracing.com.
USAC "Generation Next Tour" participants show of their class medals (above) and drive their Mopar .25 Midgets (below) on the "Little E" oval at the Eldora Speedway in Rossburg, Ohio in the series’ 2010 finale.
Mopar Masters Guild Magazine
September - October 2010
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Mopar Masters Guild Meets with Snap-On Business Systems and OEConnection Representing the Mopar Masters Guild: Dan Hutton, Steve Hofer, Mike Mulkins, and Marvin Windham Our group arrived in Cleveland on Saturday afternoon and immediately drove down to Canton. We didn’t get to go into the Football Hall of Fame, but we did attend the induction ceremony for the 2010 Hall of Famers (and Dan got us tickets in section 1!). Sunday morning we went to the Rock and Roll Hall of Fame before meeting John Johnson, Bob Locke, and Ken Satz for a great time at the Cleveland Indians game. The weather was great while we were in Cleveland, and I must say that I was very impressed with the city. I think Cleveland and the area have a lot more to offer than most realize.
Monday August 9, 2010 - Snap-On Business Systems Representing Snap-On Business Systems: John Johnson, Bob Locke, Dave Foutz, Cory Roberts, Ken Satz, and Jim Sever Monday morning we got down to business as we gathered at Snap-On’s new headquarters. Dan Foutz was kind enough to give us a quick tour of their amazing facility. The marquee out front welcomed the MMG and named each of us. Way cool! We talked at length about MORE and its ability to give us an edge as we go forward with Chrysler’s continued push to grow our mechanical market. MORE is an online catalog provided by Snap-On, with an online ordering portal called Repair Link provided by OE Connection. The catalog and ordering portal give us the ability to accept orders online and compete head on with independent auto retailers such as NAPA. The catalog SnapOn provides is far superior to others on the market and is easily kept up to date. At the time of our meeting, the beta testing was concluding, and this product with Repair Link was being rolled out market by market. Our immediate reaction was that we need this product now; however, Snap-On and OE Connection are determined to make this work and want to maximize its development in each market. They do have a very aggressive rollout campaign, so hopefully, it will get to all of us soon. Another product that we talked about was PRISM performance reporting. PRISM is very widely used already in Europe; in fact FIAT is a customer. This product will give us and Mopar in-depth reporting on different matrices and present this information in an easy to understand and beneficial format. It compares that data to likesize dealer composites to help us determine areas of concern. We suggested that this product might be useful for parts managers as we try to maximize dealer rewards. Up to date and accurate reporting is one of the keys for success. Other SBS products we touched on were Easy, PAIS, service pricing guides, customized service menus, and small inexpensive technician test equipment. Snap-On has recently developed several tools that can greatly improve technician efficiency and help us keep our customers happy. The MMG did suggest that they develop a simple and inexpensive tool for programming keys. We feel like this is a function that would greatly improve customer satisfaction. SBS agreed to take a look at that for us and investigate feasibility. (Continued on page 11)
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I can’t complete this article without thanking Cory Roberts for a great lunch. Cory was just coming back from vacation in the Northeast, and he brought back fresh crab cakes and all the fixings, which were unbelievably good. Monday night we were able to go to dinner with friends from OE Connection and enjoyed a great meal and, as usual, discussed business over drinks.
Tuesday August 10, 2010 - OEConnection Representing OEConnection: Mark Tomasetti, John Haluch, Marilyn Thaxton, Seth Galvarro, and Ike Herman. Tuesday morning we traveled the short distance from our hotel to OE Connection’s headquarters, where Marilyn Thaxton greeted our group. Marilyn is the marketing manager for OE, serving in the role vacated by Janice Schenk. We immediately continued our discussion on Repair Link with MORE but from a different perspective. We talked about the product from the independent repair facility perspective all the way through the order process on the dealer side. This is a very well thought-out product that will position OE Manufacturers in general, and Mopar specifically in the top spot for online order entry as far as ease of use and accuracy of information. We spent a great deal of time talking about individual features, and OE Connection was extremely receptive to the few changes we recommended. Dan Hutton was in the beta test group and was full of praise for the product. One needed feature that he mentioned was the ability to setup a customer before the first order, and that had already been addressed. We also talked about the rollout schedule for this product with the group. The controlled rollout seems to be the best chance for the success of this product, even though all of us in attendance were asking for a more aggressive schedule. We discussed the option of a self-service install option for the more savvy parts mangers, but Mark Tomasetti was very adamant that we present as complete a list of OE’s as possible in each market before we introduce to the IR’s. Obviously they want to sell as many dealers as possible, but even more important, they want this product to be successful in every market. A team from OE Connection is traveling into the markets and staying until the market is up and running. OE Connection also went over Collision Link and showed numbers chronicling the fast growth of Collision Link across the country. The acceptance is becoming wide spread throughout much of the country as collision shops begin to understand the benefits to them. Most of us were flying back home Tuesday afternoon, which cut our time short with OE Connection; however, the meeting was fast paced and extremely productive. In summary I feel that each of the Mopar Masters in attendance came away from these two meetings giving high marks to two of our long-time vendors for listening to us and developing products that are right for the market and very well developed. Hopefully we provided insight to them as well, so that future products and enhancements will be equally well suited to our needs.
Submitted by: Marvin Windham Benchmark CJD
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Our Supporting Vendors Support those who support you
Mopar Masters Guild Magazine
September - October 2010
Our Supporting Vendors Support those who support you
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The declining U.S. automotive “after sales” market potential Most of us have been in meetings lately where the shrinking car park issue has been discussed. This is not limited to Chrysler; in fact almost all major manufacturers are facing this same dilemma. I recently read a headline: U.S. car fleet shrank by four million in 2009 All of us worry about this dilemma, so I will attempt to give us hope. These are a mixture of ideas promoted by a variety of knowledgeable people. Jim Sassorossi said in his taped address to our recent performance group meeting, “As we look to rebuild our company, it’s going to be built on two primary items, the first being product and the second being the customer experience. We have exciting news on the product, in fact by December of this year our showrooms will have 75% new product. In the parts and service world it turns to us for the customer experience.” High customer retention is the only road to success for today’s dealerships (Chrysler has responsibility to furnish us the correct product.). There is no other survival method, period. Someone else is going to buy our dealerships for nickels on the dollar or our lot will be sitting empty if we don’t figure this out. You can’t have great customer retention without great customer satisfaction. Will customer satisfaction that is equal to your zone or regional average be good enough? Many dealership owners, general managers, parts managers, service managers, and even some manufacturers will say yes if you sell enough cars for them. This philosophy is antiquated and dead wrong. Average customer satisfaction makes average customer retention. You will lose market share with average customer satisfaction. So, in addition to having less warranty repair, less maintenance to perform, and fewer customer pay repairs because cars and trucks are made better, now you also have fewer vehicles to repair because average customer satisfaction is O.K. with you.
Service Department growth and retention: 1. Mediocre Service Advisors aren’t going to cut it going forward. You’re going to need the best, but they are not the same individuals that you’ve hired for the last 20 years. The new breed of Service Advisor will be customer relations/retention experts. They will be extremely adept at problem solving and thinking on their feet. The best ones will be those rare individuals that everyone loves the first time they meet them. Outgoing, friendly, talkative, great listeners, detail oriented, follows through well, empathizes well, and strikes you immediately as trustworthy. These will be their natural skills. You may have to train them for sales skills because while very important, sales skills will be secondary in the selection and hiring process. 2. Brainstorm a list of things Service Advisors have to do with every customer every time. (brainstorming usually means more than one person) Service Advisors need structure. Don’t miss anything. Start with “Open the Garage Door Promptly” then detail how you’re going to make sure that it gets done every time, then maybe “Acknowledge the Customer”, “Greet the Customer”, “Shake Hands with the Customer”, “Smile”, and so on. Write out what you expect in a good hand shake. Make a detailed list for every aspect of the Service Advisor’s job in your store. Include a list for phone reservations, meeting and greeting, update phone calls, for explanation of repairs including how to explain exactly what was done during an oil change. Give a copy of the list to each Service Advisor. Train them on the list. Demand uniformity. (This is straight from the Dealer Standards playbook!) Each Advisor can add their own personal touches later, but the basics have to be accomplished by every Service Advisor with every customer every (Continued on page 15)
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time, no excuses. 3. Make scripts for important things like completion notification calls, warranty follow-up calls, and proper wording to discuss with each customer (with emphasis) on how important it is to you personally that they are completely satisfied. Develop a follow-up letter and/or phone call that leaves no doubt in the customer’s mind that you really care. Make it personal because it is personal. 4. Develop a process for handling unhappy customers and exactly what to do and who is involved to help satisfy and retain them. Customer focused processes that are well written, thoroughly communicated, and frequently reviewed, equals retention.
Parts Department growth and retention: 1. Stealing business from another Chrysler store across town or across the state is not going to sustain your dealership and does nothing to help Chrysler grow stronger. We must develop new markets and new customers to grow the overall business in the future. Too many of us have been focusing on how we can compete against each other, and have not engaged in the real war for new parts business. We can’t blame MOPAR for this problem. We do need MOPAR to help us, but it is our business and we’ve got to figure out a way to make it work! (A direct quote from our mutual friend Steve Hofer.) 2. We’ve all got to engage in selling mechanical parts. We have to figure out how to be as successful as we must be, but we can’t give up on this market. This is a market that almost got away from us as we fought each other over sheet metal. (We can’t give up on sheet metal either or that will get away from us.) 3. Commit to your Service Department and become a true partner. The Parts Department can affect customer’s satisfaction and we must do everything within our area of responsibility to make sure the dealership’s customer is happy. Departmental turf wars are counter productive to our main objective – Keep the customer coming back to us and to Chrysler’s products. 4. Don’t accept mistakes as a part of our business. If mistakes are made, make every effort to identify the “root” cause and eliminate it. Customers demand perfection and they deserve it. Parts Departments must also demand uniformity. Each employee can add their own personal touches, but the basics have to be accomplished by every employee with every customer every time, no excuses. 5. Make sure all your employees understand how their job relates back to the customer. We don’t have any positions in a dealership that do not affect customer satisfaction.
And in summary I would suggest that all dealerships need to develop and live by an ethics policy. For too long our industry has lived under suspicion of “shadiness.” It should explicitly define acceptable and unacceptable conduct in your business. An ethics policy should focus on long-term results (hard for dealerships and car manufacturers), not short term profits. An effective ethics policy may not lead directly and immediately to higher profits, but it can lead to the type of pride and attitude that will cause us to do the things stated above more consistently. I guess it almost boils down to attitude. We’ve got to get our attitude right on all levels then start fighting for those customers and when we get them, keep them! Submitted by: Marvin Windham Benchmark CJD
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Hired Any Lazy Idiots Lately? Ok Then, That Makes You Normal By Ed Kovalchick
I find simply observing processes to be quite constructive. Sometimes just stepping back and carefully viewing how methodology is being carried out, yields the discovery needed to solve agonizing evils – can be more effective than all the paper analysis four moderate-sized trees can create. Take This Observation – Please A rumpled and under-dressed customer service manager (advisor to most of you), is slumped in his crumbly brown seat behind a four-foot long, tattered service counter littered with various repair order components, mini notes, loose keys, bitten pens, and used nose hairs. Behind this meager desk are two partially gray, bent up repair order racks, hanging precariously loose by four metal screws barely grasping an ancient dry-wall – it was obvious that at least two of these marginal fasteners had been yanked out of their hold previously, as demonstrated by the bowed corners representing the bottoms of the racks. Papers of sorts hung from slots, some inside some not, creating the look of a Christmas decoration gone bad. A few documents had managed to escape to the dirty floor below, where they lavished with imprinted boot footprints and coffee stains. The immediate walls contained a non-working electric clock with the plug wire hanging down, oddly swinging like a pendulum in the slight breeze. The classic “Don’t Enter Here or You Will Be Shot” sign gave the customers plenty of warning about what might be going on in the dark and dirty cave inside the doorway, where their cars were shuffled out of sight. A slight odor of burned coffee mixed with parts washing fluid was clearly evident, probably emanating from the T-shirted, hat backwards, tattooed, and chin-haired technician waiting for another slam dunk customer job. Stop Already Would you hire these derelict employees? Absolutely not you say. Well, someone did and I have witnessed this and other wretched scenes which, frankly, saved me from growing a unibrow. These losers sure don’t belong near customer service and frankly they represent the antithesis of the description. Unfortunately, hiring is complicated and a time-consuming task, which few dealership managers have the time to do correctly. And it must be said that little, if any, training is provided / available to help guide a de(Continued on page 27)
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partment manager in assuring a proper hire, although almost any employee can be responsible for driving dozens and even hundreds of customers to or from the business. Many hires are done on the “I like you” or “I don’t like you” basis, along with the famous manager’s prayer “Please God let this one work out.” An Inexpensive Solution I recently discovered a jewel of a booklet titled “Finders Keepers”, a straight forward guide for finding and keeping dealership employees. Included are dealership stories outlining some “don’t do this” techniques (you will recognize them right away – I did), and more importantly “to do” guides along with forms, word tracks, and thorough, yet simple, instructions. There are multiple sections, including how to assess current employee perceptions, complete with a tactful Employee Opinion Survey, and an interesting and informative chapter demonstrating techniques for attracting viable job candidates. I found this area to contain an excellent list of “dos” and “don’ts”, and again I recognized more in the dang “don’t” category. Where Am I? A needed chapter outlines in exact terms what is necessary for employee orientation. I guess pointing and saying “You work there. If you need something, see someone else” isn’t enough these days. Life can be so complicated. One portion features poignant guidance for on-going management of employee performance, and throughout there are easy-to-use lists and forms keeping all these important tasks simple. The entire workbook is only 85 pages and an easy read as well as an invaluable resource. Ms Wendi Venable, a long-time automotive professional, is the author / master of this superb information and she told me this meaty gem is available for only $35 from her company HireRite – phone 1877 -579 – 4473 toll free. I don’t endorse much, but when the right thing comes along for my peeps, gotta share it. One of the few things worth more than it costs these days. Ed Kovalchick is the CEO and founder of Net Profit Inc., Alabaster, AL, an international fixed operation consulting and training firm located in Alabaster AL. Mr. Kovalchick and his firm have assisted hundreds of dealers and manufacturers, and conducted workshops for thousands of students since 1979. He has written columns for Dealer Magazine since its inception. Reach him at ekovalchick@dealer-magazine.com. Call Out: “Please God let this one work out.”
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Mopar®-Powered Funny Car Driver Hagan Wins at Dallas Mopar® HEMI®-powered Dodge Charger R/T Funny Car driver Matt Hagan scored his second NHRA Full Throttle Drag Racing Series win in the state of Texas on Sunday, Sept. 26 at the 25th annual O’Reilly Auto Parts Super Start Batteries NHRA Fall Nationals at Texas Motorplex in Ennis, just south of Dallas. Hagan’s first Texas win, and the first of his career, came in Houston in April. He has moved into second place in the Countdown to the Championship point standings and is 25 markers behind John Force, whom he defeated in the final round at Dallas. En route to the final Hagan defeated Jeff Arend with a 4.105-second elapsed time at 305.15 mph, Cruz Pedregon with a 4.062/306.74 and Ashley Force Hood with a 4.111/300.26. Without lane choice in the money round, Hagan edged out Force at the starting lights by a hundredth of a second, then cruised to the victory with another stellar 4.155/294.63 as Force lost traction, slowing to a 4.491/203.74. "It was definitely gut-wrenching (to race Force)," said Hagan. "It was just amazing that it came down to me and him there at the end. It's a young team, I'm a young driver ... and we're very hungry. I'm glad to be here, glad to be beating John Force." Hagan’s Don Schumacher Racing (DSR) teammate Jack Beckman advanced to the quarterfinals, where he lost to Ashley Force Hood when his engine compartment caught fire (Beckman emerged unscathed). The third DSR Dodge Charger R/T driver, Ron Capps, exited in the opening round. Next up for the DSR trio is the Toyo Tires NHRA Nationals, Oct. 7–10 at Maple Grove Raceway near Reading, Pa. For more information on the NHRA, visit http://www.nhra.com.
Matt Hagan piloted his Mopar-powered Dodge Charger R/T NHRA Funny Car to his third win of the season at the O’Reilly Auto Parts Super Start Batteries NHRA Fall Nationals. Hagan is second in the Funny Car points, just 25 markers behind John Force.
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State Farm to Introduce New Performance Rating System for Select Service Repairers Insurer rolling out credit score-like system that reflects a shop's key performance measurements. During the second day of presentations at the Collision Industry Conference meeting on July 22, George Avery, claim consultant for State Farm, announced that the insurer was in the process of rolling out a new index performance rating system for repair facilities participating in its Select Service program. Avery said the company started communicating the new performance measurement system to local staff and repairers this week. The index uses a proprietary formula to generate a credit score- like number based upon the existing Key Performance Indicators (KPI) the company uses to measure repairer performance. The system also takes into account the mix of work performed by repair facilities so that, for example, a facility that works on only high-end vehicles, would not see a decline in their score. According to Avery, the new rating system addresses repair facility requests for a balanced approach to measuring performance where changes in individual KPI performance are compared with other KPI performance results. Avery explained that the new rating system should not be taken as a signal that the insurer will start to reduce the numbers of Select Service providers even though the Select Service program is overcapacity in some markets. The insurer will continue to add and remove facilities from the system as required by the needs of the local market. CollisionWeek will provide additional details as they become available. Source: www.collisionweek.com
“Auto racing, bull fighting, and mountain climbing are the only real sports. . . all others are games� Ernest Hemingway
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2010 Mopar Masters Guild Committees President Vice President Treasurer Secretary
Dan Hutton Mike Mulkins Steve Hofer Rick Cutaia
Tom O’Brien Chrysler Jeep Dodge Go Chrysler Jeep West Park Chrysler Jeep Rick Hendrick Dodge
Executive Committee
All of the above and: Gerry Oakes Paul Allred Rick Monteiro Marvin Windham Alan Yancey Brent Hoge
Baxter Chrysler Jeep Dodge Stateline Chrysler Jeep Dodge Jack Powell Chrysler Dodge Benchmark Chrysler Jeep Dodge Hayes Chrylser Dodge Jeep Larry Miller Chrysler Jeep Dodge
Membership Committee
Brent Christensen (West) Doug Price (East) Robbie Jackson (South) (North)
Ken Garff West Valley CJD Security Dodge Chrysler Salsbury’s Dodge City TBA
Vendor Chairmen
Paul Allred Gerry Oakes Marvin Windham
Stateline Chrysler Jeep Dodge Baxter Chrysler Jeep Benchmark Chrysler Jeep Dodge
Newsletter Chairmen
Don Cushing Mike Mulkins
Bald Hill Dodge Chrysler Jeep Go Chrysler Jeep West
Performance Group
Mike Gerber
Rairdon’s Chrysler Jeep Dodge of Kirkland
Finance Committee
Brent Hoge Steve Hofer
Larry Miller Chrysler Jeep Dodge Park Chrysler Jeep
UPS
Rick Monteiro Paul Allred Marvin Windham
Jack Powell Chrysler Dodge Stateline Chrysler Jeep Dodge Benchmark Chrysler Jeep Dodge
ADP
Gerry Oakes Mark Skinner Dan Hutton
Baxter Chrysler Jeep Dodge Power Chrysler Jeep Dodge Tom O’Brien Chrysler Jeep Dodge
Snap-On
Dan Hutton
Tom O’Brien Chrysler Jeep Dodge
OEConnection
Brent Hoge
Larry Miller Chrysler Jeep Dodge
Dealer Tire
Steve Hofer Mike Mulkins Alan Yancey
Park Chrysler Jeep Go Chrysler Jeep West Hayes Chrysler Dodge Jeep (Dan, Brent, Steve, Mike & Alan are the Chairs for Snap-On, OEConnection and Dealer Tire)
Tracy Industries
Mike Mulkins Steve Hofer Brent Hoge Guillermo Nava
Go Chrysler Jeep West Park Chrysler Jeep Larry Miller Chrysler Jeep Dodge Buerge Chrysler Jeep
Reynolds & Reynolds
Paul Allred
Stateline Chrysler Jeep Dodge
NADA 2010 Planning
Mark Skinner
Power Chrysler Jeep Dodge
Website Chairman
Steve Hofer
Park Chrysler Jeep
THE GUILD MOTTO “THE EXCHANGE OF INFORMATION BY LIKE SIZE DEALERS IN A NON COMPETITIVE ENVIRONMENT” This is the reason the Guild exists. The strength of our existence relies not on the voices of a select few, but on the combined knowledge of all. With this in mind, everyone should remember to become as proactive as possible. The Guild is YOURS, be proud of it and be part of it!