Independent Automotive Professionals Association “Leaders in Automotive Service”

IN THISISSUE

President’s MessageCleaning Up the Process

Green Business

HOW TO HANDLE DEBTby Phil Unander This is the first President’s message for

the new year and accordingly I wanted to make it an important one. Of course the subject that I had planned to write about got changed at the last minute when an incident occurred in my business that kind of stunned me and seemed to then take priority.

The dictionary defines DEBT as “something owed or something that one

is bound to pay and/or a liability or obligation to pay.” The way that this applies to most of us in my story is in our monthly accounts with vendors and how we pay those bills. First of all, I need to define what I think a monthly account is and what my terms are. At my business we extend to our charge accounts the privilege of obtaining parts during a monthly period and then paying for those parts the following month. This is common with most suppliers and is generally known as a monthly account. The arrangement is essentially a short term interest free loan. Our accounts are offered a 2% discount if we are paid by the 10th of the following month, or the net amount if paid within 30 days. The benefit of this arrangement to the shop and to my business is that the shop can obtain the part, do the job, collect from the customer and neither of us has to worry about the inconvenience of a COD delivery. My suppliers give me the same terms and I extend those terms to the shop. The shop pays me and I pay them and everyone is happy. Sounds simple and it is........and should be. The problems happen when the shop, after having completed the job and collecting from the customer somehow uses the money to pay some other bill and when it comes time to pay me, they can’t. Almost all of my customers that find themselves in this position have the intention of paying, but just don’t have the money right then. This scenario unfortunately is not that unusual in these tough economic times and like most suppliers, we try and work with our customers to avoid harsh or unpleasant

J A N UA R Y 2 0 1 3

IAPA President’s Message Wednesday, January 16th • Lillian Conroe, Small Business Liason from Governor Brown’s Small Business Advocate’s Office

Saturday, January 26th • Jorge Menchu, Automotive Diagnostic Trainer, Developing a Diagnostic Strategy Goleta Elks Lodge, 8AM – 5PM, Reservations PLEASE!!Wednesday, February 20th • Mitch Schneider, Industry Leader, What can we do to change the future image of the Automotive Aftermarket?

Wednesday, March 20th • John Hurley Retirement RoastIAPA Santa Barbara General Meetings are on the third Wednesday of each month at Mulligan’s at 6:45 pm.

Meeting and dinner $20.

IAPA Meetings

situations. If I owe a supplier a debt, and I KNOW I am going to be past due on it, I will ALWAYS call them and inform them of this before they have to call me. This makes them much more apt to work with me and be as lenient and flexible as they can. I do the same with a shop that comes to me ahead of the problem and we work it out together. I encourage this practice at all levels with anyone you have a debt with. When this does not happen is when things get unpleasant. Many of my customers are surprised that I do not have endless amounts of capital, that their accounts with me are not like a revolving credit card and that I also do not want to be in the banking business. Some get downright nasty when I am just asking for MY money. This is where my specific story comes in.

I have an account (a former IAPA member but not a current member) that I have known and done business with for many years. We have always had this shop on a monthly account. Thru the years he has been a good payer and a bad payer depending on many of the economic factors mentioned above. I have always worked with him. In the past few years he has been buying less from me choosing instead to do his business at a less expensive parts store. I still maintain his monthly account and offer him the best service that I can under the circumstances. He spends about $250. per month. In early December my wife Jackie called him and informed him that he was past due from October and that we needed a check. He was surprised and said that he would leave his bookkeeper a note. A week later, after not receiving a payment she called him again got the same response. Another week goes by and

again, no payment and the same response. On Friday she calls him and he is out. She leaves a message for him with his service writer/technician informing him of all that has transpired and also telling him that if we do not receive a check by Monday, we will have to put him on COD. His employee does not seemed surprised and assures her that he will pass on the message. On Tuesday, the shop owner comes into my store for one of those hard to find items that no one else has (that’s all I get from him now) and when it comes time to make the purchase, he is told that his account is on COD. He becomes irate and talks about the 20 + years that we have done business and how can we do this to him. I and my business immediately become the bad guys in this scene and he leaves upset. After a few days, my wife attempts to call him and calmly discuss the situation. He is still adamant that is is not his problem, but instead it is his bookkeeper’s fault. He has no idea what his checkbook balance and accounts payable status is and shows no interest in even looking. Jackie reminds him that we have not received a check since early October (and remember that this is now late December) and that she made several calls to him and his tech/service writer to ask for money and inform him of his pending COD status. He owes us for 3 months of purchases and in our attempt to work with him and be fair, she is only asking for the farthest out amount (about $250.). This would still make him delinquent but we are trying to work with him. He does not care and he is still very insulted. He angrily informs Jackie that we will get paid when he has some money. I am writing this on the 29th and still have received no payment of any amount. So I was and am still stunned. Why am I the bad guy here? What did I do wrong? What did I do that was unfair to this shop? We all as suppliers all try so hard to work as a team with the shops to help us all survive. I honestly believe that I have one of the more liberal credit policies around. The bigger corporate suppliers have very little conscience and no flexibility when it comes to being past due. I’m not sure if I will get paid from this account soon or ever. If and when I do, will I ever be able to trust him and reopen his charge account? And the worst part is that in his eyes, I’m the bad person that is contributing to his downfall. He’ll think it and tell it to anyone that will listen. The message here is keep track of your accounts payable, respect your vendors as you would want them to respect you and pay them on time if you can. If you can’t, then communicate with them what your situation is to ensure a continued and fair working relationship between you both. We are really all in this mess together and we can all help each other survive. We just have to do it.

January 2013 2

Lillian Conroe Small Business and Permit Specialist for the Governor’s Office of Business and Economic Development (Go-Biz).

Career Path Started With EDD 1982 as Investigator for 3 years.

Returned to Mortagae Banking As a Forclosure Processor and Retail Collections for 10 years. Return to EDD 1994 as Job Service Representative assigned to work with: long term unemployed, Ex-Felons

Program, FEMA Centers, and the Business Revitalization Center (BRC); later selected as the Director of the BRC.

Prior to those positions was a supervisor for the Waste Tire Enforcement Unit for Calrecycle formerly known as the Intergrated Waste Management Board. Also, responsible for inspectors who inspected used tire shops and tire haulers from Fresno to the Mexican Border.

Assigned to the Mexican Border 2012 Task Force Unit working to clean the environment between California and Mexico.

Additionally, supervised the permit staff responsible for permiting of landfills. Lead support for Southern California under Calrecycle.

Recently appointed to the Govenor’s Office of Business and Economic Development as the Small Business and Permit Specialist for Southern California.

Speaker

January 2013 3

by Brian Canning

Cleaning Up the Process There is no doubt that there is a fair

population of hacks out there but just as assuredly there is a whole population of technicians dying for you to get the hell out of the way so they can dive in and do what they were trained to do and do what they do best. I don’t want to spend one minute talking about the hacks; you hired them, you refuse to fire them and their even being here is the result of you being a bit of a wimp

when it comes to doing what is right and what is best for your business. I do want to talk about that highly motivated B tech out in the third bay that could be a production super star if you would stop using him to pick up parts and drop your customers off at their office. I also want to talk about your A tech, who has been turning a wrench since before you tried out for pee-wee football and were embarrassed to find out that your protective cup was worn up front, not in back. That he is older than you does not by itself mean he can diagnose and fix a car but those certifications on the wall along with long experience and the quality of his work might mean he has learned a thing or two along the way. He might even have a thing or two to say that are worth listening to. If you get the hell out of their way, these guys might just surprise you with all that they can accomplish. A great shop has to have somebody in charge and calling the shots but that does not mean that it has to run like a prison. Our technicians are, or can be, our greatest asset, particularly when we arm them with a working environment that supports and encourages their effort. They are there to provide technical expertise and to generate labor. On a good day technicians have a tough time of it, with shops that are unbearably hot and unbearably cold, with bad lighting, slippery floors, cars that are incredibly complex and universally under maintained, along with our changing and irrational expectations. The scariest and most unfortunate part in all of this is that far too often we do not do our technicians the courtesy of letting them know our expectations nor letting them know what they are doing right or doing wrong. It’s a hell of a thing that the guys that give us the ability to survive and exist are treated something akin to being red headed step children. Just think if we actually brought them in on our vision for the future and asked their advice on what would make us better and gave them the respect their role and responsibilities should afford them. I promise not to ever accuse you of babying your techs but I promise that if they win and are successful, you win and are successful in a big way. The greatest impediment to tech productivity, tech efficiency and tech proficiency is not the technician or his attitude; it is you and your attitude as a Shop Owner and as a Service Manager. I am ashamed at the number of technicians

that do not know what is expected of them for the simple reason that we have never taken the time to discuss it with them. Somehow we expect that they should know what we are looking for and god forbid if we would compliment them if they have a great week or talk to them when their numbers are below what we would expect. The truth is that most of us do not like those types of interactions, particularly the negative ones but I promise if you look, there will be plenty of opportunities to celebrate great efforts and if you make a habit of this, those odd negative conversations that would come up, will be learning opportunities as opposed to confrontations. These guys are in the dark trying to live up to your expectations. Do everyone a favor and tell them what you are actually looking for. Our shop process needs to support our technicians being time efficient and productive. Anything we do that would take a tech away from servicing or diagnosing a car or that would prevent him or her from being productive, is impacting our sales, our profits and our viability. Pulling a tech off an intense diagnostic job to take Mrs. Jones to work after she dropped her car off probably thrills Mrs. Jones to no end but I am guessing she would be just as happy if you or perhaps the lot boy were to do it and I can promise your technician would be very thankful. Technicians are there to diagnose service and repair cars. You need to make sure that is what they are doing. If you have a tech(s) that are just not productive and not doing the things you want and need, fire them and get the quality people you need. I promise they are out there and besides, you can’t fix stupid, despite your very best effort. All of us have known techs that did not measure up just as all of us have, from time to time, been blessed with a technician that did everything that was asked and much much more. Find that tech and work to make your shop his or her home. I have stood in front of the biggest, angriest, ugliest technician you could ever imagine, defined what I needed from him, set high standards for everything I needed him to do and got out of his way. The damnedest thing, he did all that I asked of him and much more, driving customer satisfaction, sales, profits and our salaries in the process. A clear path to greatness is staffing your shop with great techs; who are knowledgeable, experienced and productive. It’s amazing what high expectations and hard work can get you! You just have to get out of the way and let it happen.

January 2013 4

Become an Expert on:

Wiring Diagrams Color Coding Techniques of Waveform Analysis Dealing with Complex Information Scope Specs & Features Problem Solving—Turning your

service bay into your best classroom and you personally into your own best teacher

Information Technology Solutions

Jorge Menchu, one of the pioneers

of using a lab scope to diagnosis automotive

problems at the first IAPA offered technical class

on Mastering Wiring Diagrams and Waveforms.

Jorge has won five “Motor Top 20

Awards“ for products that he has designed

throughout his years as a technician in a small

automotive shop in Fresno. Jorge specializes

in diagnostic and learning though the processes

of waveform analysis and electronics.

Become proficient at mastering wiring

diagrams and waveforms analysis by mastering

the methods to deal with complex information,

problem solving, taking charge of the process of

learning, analysis and diagnosis.

At the end of this seminar you will leave

with a deep understanding of how to get the most

from a wiring diagram and waveform analysis.

You will also gain a complete set of “Brain Tools”

that will allow you to think more clearly and guide

yourself through tough diagnostic challenges.

Seats are limited, don’t be left out on one

of the best seminar’s to come to Santa Barbara,

contact Phil or Nikki today!

DATE & TIME SaturdayJanuary 26, 2013 8:00 am to 5:00 pm

Members $199 Non-Members $224 Multiple Employee Discount $25

LOCATIONSanta Barbara Elk’s Lodge 150 N Kellogg Santa Barbara, CA

Lunch will be provided along with break time snacks

CONTACT Phil @ 964-3545 Nikki @ 845-4242

For reservations: please contact us prior to January 22, 2013

Mastering Wiring Diagrams & Waveforms

January 2013 5

As you can see from the front page of the newsletter, we already have a lot of interesting things going on for the 1st quarter of 2013. I know some of you may think, Lillian Conroe of Go Biz, doesn’t sound overly exciting. BUT, Lillian has been a small business advocate in the State of California for many years. She helped us in our battle with the BAR to get a liaison.

She is one of three co-authors of the Cal Gold website and if you haven’t been there you really should. It takes a lot for people to make the jaunt to Santa Barbara to speak at our meetings and I would really appreciate a good turn out. I understand the past few years have been a struggle. But coming to the meetings, joining in and listening to others just may bring you that golden kernel to help you make a profitable. You have a great team on the board but some of us are getting old and we need some new blood/better yet new ideas on what the members want for meetings, programs and benefits. If you have some extra time we certainly could use your help. Unfortunately, we have lost many people

in our industry over the past year. Recently, we lost an IGO charter member, Jack Risdon. His son, John has been a member of our organization for many years. Jack was very

instrumental in helping me work through the bureaucracy and figure out how to get “new” oil off the hazardous materials list. At the time, and I didn’t know it but he was a retired Fire Chief for the Carp/Summerland District. He was also instrumental with his time and money to help with the small business show down at the Earl Warren in the early 1990’s. Jack, I considered to be one of the smartest businessmen in our industry. I am proud to say I had the opportunity to meet and work with him. Thank you to the Risdon family for sharing your dad with us over the years. In closing, I really do hope you see value in attending the meetings. If you have an idea for a topic or speaker, I am very open to your ideas. Phil and all of the board members thank you for your continued support.Thank you and be prosperous,Nikki

2013by Nikki Ayers

Jorge Menchu Class Endorsement As an instructor, I am fortunate to attend most of the major auto repair training conferences around the country, and to watch other instructors in action. Jorge Menchu’s workshop on wiring diagrams and waveforms is one of the best, hands down. I strongly encourage IAPA members to attend Jorge’s workshop on Saturday, January 26 at the Elks Lodge. I have attended the class before and am happy to sign up for another round. I hope to see everyone there.

Jack Rosebro

Hybrid Specialist & Industry Trainer

New customer to Tech Support: “It says, hit any key and when I do that noth-ing happens’.

Tech Support: Can you try again and tell me what happens?

Customer: ‘Tried but nothing”

Tech Support: “What key did you hit?

After a moment and some chick ling sound the customer replied: Well, first I tried my car key and just now my office key.

Read more: http://www.ajokeaday.com/ChisteDelDia.asp#ixzz2HWChXQ8n

:)

January 2013 6

Public Invited to Luncheon Event Honoring Certified Green Businesses

Businesses that have achieved certification during the past year as “green” businesses from the Green Business Program of Santa Barbara County (GBPSBC) will be honored on Wednesday, February 13, 2013 during a luncheon from 11:30 a.m. to 1:30 p.m. at the Santa Ynez Valley Marriott, located at 555 McMurray Road in Buellton. Eric Onnen, Founding Partner of Santa Barbara Airbus, will serve as the keynote speaker. The cost of the luncheon is $25.00 per person, if payment is received by February 6th or $30.00 per person for payments received after that date. Only checks accepted for pre-registration; cash or checks accepted on the day of the event. The GBPSBC encourages employers and employees to protect, preserve, and improve the environment in solid waste reduction and recycling, environmentally preferable purchasing, energy and water conservation, and pollution prevention e.g. air quality, transportation and storm water runoff. This multi-jurisdictional, voluntary incentive program for environmentally conscientious businesses allows environmental agencies and advocates to provide support and to recognize participating businesses that implement good environmental management practices. It also focuses on publicizing businesses that are good environmental stewards. The GBPSBC educates job providers on incorporating resource conservation into their daily practices, as well as fostering a positive relationship among governmental agencies, the business community, and the public. A business that wants to become certified must complete an application and checklist. Serving as a one-stop shop, the Green Business Program Director offers guidance and various resources to assist the business throughout the certification process. A business that achieves certification can save money by reducing the use of energy, water and other resources and create a more comfortable and healthy workplace. It will also receive a certificate and a window decal with the GBPSBC logo that it can use in marketing and on its website. In addition to the annual luncheon, certified green businesses will be recognized through a Green Business Directory, advertising, and the GBPSBC website. GBPSBC Partners may publicize certified green businesses in their promotional materials, events, advertising, on their websites, and in their own public recognition ceremonies. Currently, businesses in the following sectors are eligible to apply for certification: general office/retail stores, restaurants, lodging establishments, and automotive shops. Dental offices and wineries will become eligible later this year, and other sectors will be added in the future based on available resources, demand, and community interest. To obtain more information about the GBPSBC Luncheon and to RSVP, please visit the GBPSBC website at www.GreenBizSBC.org. For additional information, please contact the Buellton Chamber of Commerce and Visitors Bureau at (805) 688-7829 or send an e-mail message to Kathy@buellton.org. RSVPs are requested by February 6, 2013. Checks should be made payable to the “County of Santa Barbara” and sent to: County of Santa Barbara Public Works Department, 130 East Victoria Street, Suite 100, Santa Barbara, CA 93101, Attention: Alan Nakashima.

Independent Automotive Professionals Association

Santa Barbara Chapter PresidentPhil Unander .....................................................(805) 964-3545Santa Barbara Chapter Vice PresidentManual Escobar ................................................(805) 965-1540Santa Barbara Chapter SecretaryGrant Lee ..........................................................(805) 966-3649Santa Barbara Chapter TreasurerSteve Bowman ..................................................(805) 965-5051Santa Barbara Membership ChairmanGrant Lee ..........................................................(805) 966-3649Santa Barbara Chapter Board MemberJon McConnel ..................................................(805) 969-1357Santa Barbara Chapter Board MemberRon Cooper .......................................................(805) 730-0084Santa Barbara Chapter Board MemberJohn Hurley .......................................................(805) 962-2404Santa Barbara Chapter Board MemberHenry Hinck ......................................................(805) 962-8015Santa Barbara Chapter Past PresidentHunter Self ........................................................(805) 969-4147Central Coast ContactGeoff Lyons.......................................................(805) 238-0477Newsletter / Webwww.groupprofessionals.com ...........................(310) 320-9575Santa Barbara Chapter EducationBob Stockero ........................................ (805) 965-0581-X2836IAPA Chairman of the BoardClark Volmar .....................................................(805) 966-3649IAPA AttorneyRobin Unander ..................................................(805) 962-5949IAPA Merchant Services - AxiaR. Damon Perez ................................................(888) 324-2858 IAPA Government AffairsJon McConnel ...................................................(805) 969-1357Nikki Ayers .......................................................(805) 845-4242

Independent Automotive Professionals Association Disclaimer

Independent Automotive Professionals Association, its chapters, officers, board members, employees, members, and affiliates in no way warrant the quality, competency, or merchantability of any goods or services advertised in this publication. In connection with this disclaimer, the IAPA in no way warrants or insures the goods or services described above and each and every individual and entity contracting with these manufactures shall do so at their own risk. Furthermore, individuals utilizing these services are forewarned that the IAPA has conducted no investigation into any representations made in any advertising, literature, or ad distributed by the advertisers in this or any other publication. Additionally, please be advised that the opinions and comments expressed by the contributors to this publication are those of the contributors alone and do not necessarily reflect the opinions of the Independent Automotive Professionals Association, its officers, directors, employees, other contributors, or membersFebruary 2012 “Leaders in Automotive Service” Page 7

Independent Automotive Professionals Association

Santa Barbara Chapter PresidentPhil Unander .....................................................(805) 964-3545Santa Barbara Chapter Vice PresidentManual Escobar ................................................(805) 965-1540Santa Barbara Chapter SecretaryTim Kitt.............................................................(805) 962-6633Santa Barbara Chapter TreasurerSteve Bowman ..................................................(805) 965-5051Santa Barbara Membership ChairmanGrant Lee ..........................................................(805) 966-3649Santa Barbara Chapter Board MemberJon McConnel ..................................................(805) 969-1357Santa Barbara Chapter Board MemberRon Cooper .......................................................(805) 730-0084Santa Barbara Chapter Board MemberJohn Hurley.......................................................(805) 962-2404Santa Barbara Chapter Board MemberHenry Hinck......................................................(805) 962-8015Santa Barbara Chapter Past PresidentHunter Self ........................................................(805) 969-4147Central Coast ContactGeoff Lyons.......................................................(805) 238-0477Newsletter / WebMike Pickett ...... mpickett@groupprofessionals.com 968-4680Santa Barbara Chapter EducationBob Stockero........................................ (805) 965-0581-X2836IAPA Chairman of the BoardClark Volmar .....................................................(805) 966-3649IAPA AttorneyRobin Unander ..................................................(805) 962-5949IAPA Merchant Services - AxiaR. Damon Perez ................................................(888) 324-2858 IAPA Government AffairsJon McConnel ...................................................(805) 969-1357Nikki Ayers .......................................................(805) 845-4242

Independent Automotive Professionals Association

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Call On The Leader

Family Business Mistakes By Gary McCoy, Fairway Communications(http://workshop.search-autoparts.com/_Family-Business-Mistakes/blog/5621205/31710.html?cid=95879)In a recent presentation to the Spring Manufacturers Association (SMI), Joe Murray of First Financial Group reviewed six mistakes that can most commonly prove disastrous for family businesses. He provided attendees with a risk barometer to help assess the health of their business.Murray said the most common mistakes that family business owners make are contained in these statements:1. "I know what my business is worth."2. "I'm too busy running the company."3. "That'll never happen to me."4. "There's plenty of time for that."

5. "My business is my retirement."6. "You can't beat Uncle Sam."

Murray said every family business needs to have a succession plan and a team of advisors in place. Why? So there is a way to transition the business to the next generation. He said this is especially important because the odds of a family business surviving to the second or third generation are difficult without this.

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