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March-April - Automotive Recyclers Association

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Recycling<strong>Automotive</strong>Recycling<strong>March</strong>-<strong>April</strong> 2013<strong>March</strong>-<strong>April</strong> 2013Official Publication of the <strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong>Tom Morris onRethinking Change<strong>Automotive</strong> <strong>Recyclers</strong>Offer Their Ideas On:• Reorganizing Structure• Remotivating Employees• Recharging Sales• Remaking ProfitsReinvent Yourselfin theNew Era of Business2012-2013 ARA Scholarship Winners


President’sCommentsBy Chris Wright, ARA PresidentARA is on the MoveIhope this letter finds everyone doing well. I also hope that your recycling businessis having a great start in 2013 and will continue to stay busy throughout the year.Speaking of busy, ARA has its plate full. I am writing this letter a week before ourarrival in Washington, D.C., for our annual Hill Day and Legislative Summit. The ARAstaff has been very busy preparing for this event, scheduling legislative visits and organizingour first-ever Legislative Briefing for Congressional Staff.Our 2013 strategic plan has been finalized and will be presented to the Board andmembership in Washington, D.C., during Hill Days. This strategic plan sets the goalsand guides the <strong>Association</strong> in its direction for the next three years. Several of the initiativesare already under way and many others will be assigned to the appropriate committeesduring our event.As many of you may know, ARA Product Services LLC reached an agreement withAlteso Group of Companies to provide ARA members and affiliated state organizationmembers an online auction platform. The Executive Committee is very pleased withthis opportunity. First, we are helping to address automotive recyclers’ number one concern– salvage acquisition. Second, we are creating an opportunity to help with anotherof the <strong>Association</strong>’s main concerns and the concerns of our state affiliate associations-- membership growth. Although the auction will be available to ARA members and stateaffiliate members, the fee structure of this auction will encourage auction participantsto become members of ARA and their state association. Please be sure to get your automotiverecycling facility registered to participate in the ARA auction.The planning for our 70th Annual Convention and Exposition is also well underway.It’s looking like we will have a full schedule of events and informative seminars. Thisyear’s convention will be held at the Sheraton Downtown & Convention Center inPhoenix, AZ, on November 6-9, 2013. ARA also has the great honor of hosting theInternational Roundtable on <strong>Automotive</strong> Recycling, which will immediately follow theconvention. This event attracts leaders from all over the world to discuss how to helpeach other as one global industry and is worth staying on to attend if possible. I lookforward to seeing you in Phoenix for both events.Thank you to the other members of the Executive Committee, Staff, CommitteeChairs, and members of the Committees for all of your hard work and dedication toour <strong>Association</strong> and our industry. Without you, everything that we have been able toaccomplish would not be possible.Keep Recycling,Chris WrightARA President 2012-2013ARA OfficersPRESIDENTChris WrightCapital Auto PartsThomasville, GAchris@capitalautoparts.comFIRST VICE PRESIDENTEd MacDonaldMaritime Auto Salvage, Ltd.Truro, NS Canadaedmacd@maritimeauto.comSECOND VICE PRESIDENT/TREASURERRicky YoungYoung’s Auto Center & Salvage/Car CrushersBenson, NCricky@youngsautocenter.comSECRETARYMike SwiftTrails End Auto and Truck SalvageDes Moines, IAmike@trailsendauto.comIMMEDIATE PAST PRESIDENTRandy ReitmanReitman Auto PartsMelbourne, KYrandy@reitmanautoparts.comARA Executive Staff & ContractorsARA Headquarters • (571) 208-0428CHIEF EXECUTIVE OFFICER & PUBLISHERMichael E. Wilsonmichael@a-r-a.org Ext. 14DIRECTOR OF MEMBER SERVICESKelly Badillokelly@a-r-a.org Ext. 26DIRECTOR OF POLICY AND EXTERNALAFFAIRS & E-CAR CENTERBetsy BeckwithBetsy@a-r-a.org Ext. 17DIRECTOR OF STATE & GRASSROOTS AFFAIRSJessica M. ThomasJessica@a-r-a.org Ext. 23DIRECTOR OF POLICY & POLITICAL AFFAIRSDelanne BernierDelanne@a-r-a.org Ext. 18MEETING & EXPOSITION PLANNERKimberly Glasscock(615) 476-4501kglasscock@awardwinningevents.comADMINISTRATIVE ASSISTANTMaria Millermaria@a-r-a.org Ext. 10ACCOUNTANTJohn Caponitijohn@a-r-a.org Ext. 16CAR PROGRAMS, CONSULTANTChrissi Moyer(540) 303-2282chrissi@a-r-a.orgGOLD SEAL PROGRAM, CONSULTANTGinny Whelan(239) 362-1283ginny@araeducation.orgAUTOMOTIVE RECYCLING MAGAZINE &WWW.AUTOMOTIVERECYCLING-EZINE.COMCaryn Suko Smith(239) 225-6137AEAEditor@comcast.netFor advertising, editorial, or production information,e-mail ARAEditor@comcast.net or call (239) 225-6137.www.a-r-a.org4 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Editor’s NotesBy Caryn Smith ARAEditor@comcast.netHow Do You Eat an Elephant?My dad is famous for his sayings. Ourfamily’s favorite is one that we saybefore embarking on a long trip, “‘We areoff’ the captain shouted as he spit in thefirst mate’s pocket.” But, the saying I referencemost, because I often have multiplelarge projects going on, is the title ofthis column, "How do you eat an elephant?"The answer to this question is, ofcourse, “one bite at a time.”You might relate to this question afterreading this issue on recharging your business,your workforce, your processes, etc.I think the articles herein are full of outside-the-boxkind of ideas, and it may, Imust warn, burst your brain cells if youambitiously try to act on every idea thatcomes from reading this issue.I recommend that you first flip to page58 and take Andy Latham’s advice in hiscolumn about thinking and ideas!I’ve found that small consistent actionsover time, in a new direction makes thebest change, not the shocking starts andstops most of us do because we get easilydistracted off our intended course.Self-help guru Wayne Dyer says, “If youchange the way you look at things, thethings you look at change.”John F. Kennedy said, “Change is thelaw of life and those who look only to thepast or present are certain to miss thefuture.”“The greatest danger in times of turbulenceis not the turbulence – it is to actwith yesterday’s logic,” is Peter Drucker’stake on change.All of these experts from differentworlds have one thing in common; theyall know that change is constant andinevitable. You can embrace change orinstigate change, but if you ignore change,you will wake up one day and realize everythinghas changed, and you’ve been leftbehind.Therefore, I suggest you read this issueone article at a time. Put the issue downbetween each article, and write down yourideas. Ask yourself what changes can helpyou reach and stay on the cutting edge,and will keep your business viable andprofitable. Maybe its as simple as becomingCAR or Gold Seal Certified, or as complexas changing your business models.To be sure, “If you always do what you’vealways done, you’ll always get what you’vealways got, maybe,” said Anonymous[emphasis added].E-mail me your inspired thoughts andideas to ARAEditor@comcast.net! ■6 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Plugged InBy Michelle Keadle-TaylorYour ARA Membership Saves Money on GraingerASSOCIATE MEMBERDid you know that as an ARA member you can automatically savelots of money by accessing Grainger through the BizUnite? Thebest part is that there is no catch to get the savings – it’s free as anadded benefit of ARA membership.BizUnite was established in 2007 as adivision of CCA Global Partners. BizUnitewas founded to provide their cooperativemembers with discounted services. Theythen began offering their services to anycooperative or association that fits theirmember-centric business model, comprisedof four core industries, includingthe automotive industry.BizUnite partnered with ARA in 2010to offer ARA members and its affiliatechapters access to global discounts on allkind of products and services through the<strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong> Marketplace.BizUnite’s focus is to offer core programs,such as Grainger whose productline has expanded to more than 1 millionproducts and repair parts, that will benefitARA members the most. Grainger isone of the most popular benefit offeringsfrom the ARA Marketplace on BizUnite.“The average ARA member who isenrolled in the Grainger program isspending approximately $2,500 per year,”said Veronica Pratt, BizUnite MemberServices Representative. “They wouldhave spent considerably more without theprogram discounts. It’s a highly adoptedprogram among ARA members and 75%of the ARA members who are signed upfor this program use it regularly.”Grainger offers products that keepbusinesses running smoothly, includinglighting, motors, cleaning supplies, materialhandling, hand and power tools, securityand safety, pumps, electrical, and nowa complete line of fasteners and fleet andvehicle maintenance products.The program offers ARA members:• A 5% discount on all Grainger catalogitems.• Substantial savings for all members,no matter what your businesssize or segment.• Hundreds of items with additionaldiscounts including seasonalitems and commonly purchasedoffice and break room supplies.• Free standard shipping on stocked,catalog items. Free standard groundfreight; other charges apply for other freightservices such as expedited delivery, sourcedproducts, shipments to outside U.S. or otherspecial handling by the carrier.“The exciting part about the Graingerprogram is that ARA members don’thave to do anything except contact me toenroll and they will get additional savings,”said Pratt. “Some of the best benefitsare the immediate savings onshipping that ARA members will experience.If a recycler is using various companiessuch as Grainger and theircompetitors to fulfill their supplies, theywill find that by using Grainger for alltheir supplies, they will experience substantialsavings through this program.”In addition to the savings receivedfrom discounts and free shipping,Grainger offers the following benefits:• Next Day Shipping – Available on99% of all orders, those received by4 p.m. are shipped the following day.• 24/7 Emergency service.• One stop sourcing program for allGrainger offers products that keep businessesrunning smoothly, including a complete line offasteners and fleet and vehicle maintenance products.your maintenance, repair, and operations(MRO) Parts and Supplies.• 420 local branches.• Dedicated team of Local BrandManagers and Specialists for all yourquestions and requirements.Grainger offers additional resourcessuch as energy savings and sustainabilityprograms, inventory management, acomprehensive safety program and aWeb site that makes one-stop shoppingand ordering fast and easy.“It’s important to note that our programwith Grainger offers exclusive discountsto ARA members that are notoffered to other businesses,” said Pratt. “Ifan ARA member already has an accountwith Grainger, all they have to do is provideme with their business and accountinformation and I will have Grainger linkthem to the discounted program. If amember doesn’t have a Graingeraccount, we can set them up with oneand then they will have access to all thesavings too. The only thing ARA membershave to do is contact me atvpratt@bizunite.com or call me at (603)628-2337.” ■Michelle Keadle-Taylor is a freelance writer based inNorthern Virginia.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 7


ARA ActionLatest News and Reports from ARAAR-TV Showcases New Feature inARA's Certified <strong>Automotive</strong> Recycler (CAR) Program<strong>Automotive</strong> Recycler TV (found onlineat automotiverecyclertv.com) recentlyaired a look inside ARA’s CAR Programand it’s new educational research initiativewhich joins parts of the URG 8000and Canadian <strong>Automotive</strong> <strong>Recyclers</strong>Environmental Code into CAR to furtherestablish standards of excellence in businesspractices. ARA also is currently conductinga pilot ISO 9001 certificationstudy to analyze and review the practicalityof incorporating 9001 certification intoARA’s environmental and business standard,the CAR Program (also referred toas the Certified <strong>Automotive</strong> RecyclerProgram), was established in 1994 to producea set of standards for general businesspractices as well as environmentaland safety issues and to provide guidancefor member facilities in adhering tothese standards. Since it’s inception, theCAR Program has made great strides inthe automotive recycling industry regardingsafety and procedures and continuesto set levels of excellence today. Go towww.automotiverecyclertv.com for a lookinside it’s newest venture.“<strong>Automotive</strong> Recycling 101”An Historic Briefing for Congressional StaffARA recently held an historic Briefing for Congressional staff during the <strong>March</strong> Mid-Year Board Meeting, Business Conference, Hill Day, and Legislative Summit. Thisbriefing helped those staff who write policy for Members of Congress to better understandthe automotive recycling industry and be more educated about the business facilitiesof professional automotive recyclers. With extensive staff turnover every electioncycle, our efforts to educate are never-ending. The briefing was led by automotive recyclersand presented in three parts.The first segment was comprised of various “<strong>Automotive</strong> Recycling 101” presentations,focusing on how a recycler manages and processes an end-of-life or total-loss vehiclewith emphasis on the consumer and environmental benefits of such action. Anothersegment featured the related legislative and regulatory issues that affect the business ofautomotive recycling. The final segment was reserved for discussion from the audience.Specifically, the agenda included the following:• Introduction• <strong>Automotive</strong> Recycling 101 – Full-service and Self-service Operations• Definition of Parts• Green Recycled Parts• Education• Certification• Issues• Closing and Q & AThis was an excellent opportunity for ARA members to meet, engage with, and educateCongressional staff.ARA Attends Series ofRelated Industry MeetingsIn January, ARA staff attended the meetingof the National Auto Body Council(NABC) at which members were updatedon the activities of the organization.One key topic centered on NABC’s significantsupport of Operation Comfort’sAutomotivation program to secure a newfacility in which it can continue to helpdisabled U.S. service members and theirfamilies through the instruction andpractice of proper collision repair. Theyalso discussed recycle your ride initiatives.ARA Gold Seal Committee ChairmanEric Schulz participated in the Parts-Trader Advisory Board meeting wherethey discussed the pilot program.The week finished with a two-dayCollision Industry Conference (CIC)meeting. Here, ARA representatives interactedwith industry executives at agendarich presentations from I-CAR and ASEand interactive sessions from CIC’s committeesincluding Definitions, Insurer/Repairer Relations, Data Privacy, HumanResources, Education and Training,Marketing, Governmental, and mostinterestingly, Parts and Material.Within the Parts and Material committee,a new subcommittee on RecycledParts, headed by Mike Kunkel, PRPBoard Member and General Manager ofAmerican Auto Salvage (Ft. Worth, TX),intends to focus on the following issues:• Recycled/Reconditioned Parts,Condition and Standards• Impact of State Laws on Parts Use(total loss thresholds, salvage auctionregulations)• Parts Cleanup Times• ARA & URG Standards• Parts Ordering Errors and Defects(Reporting Mechanism)• Recycled Airbags.ARA represents the interests of professionalautomotive recyclers within thelarger collision and parts industries. ■8 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Marketing 101By Mike French mike@mikefrench.comHow to Outsell the Competition<strong>Recyclers</strong> tell me all the time that theyaren’t getting their advertising donebecause they are wearing too many hatsand distracted by other important things.But the reality is, those who advertise arethe ones who end up with the lion’s shareof business in any economy. Consumerswill still purchase things they need, especiallyvalue-priced replacement auto parts.Here are suggestions to help you outsellthe competition!Do the most important things first.Even in advertising, you have to scheduletime for important activities or they won’tget done. Charlie “Tremendous” Jones, inhis book, Life is Tremendous, tells the storyof a frustrated businessman who askedhim for a solution to his problem of nevergetting important things done. Charlieasked the man to describe a typical businessday. After the businessman finished,Charlie wrote down a simple solution tothe problem. Here’s what it said:“Every night before you go to bed,make a list of what you need to accomplishthe next day. Then number the listwith the most important item beingnumber one, and the second most importantthing being number two, and so on.The next day when you get to work, onlyconcentrate on doing the number oneitem on your list and don’t do anythingelse until it’s done. Shut out all distractions.When the first item on your list iscomplete, cross if off and concentrate onthe second item. Do as many things asyou can from your list for that day in theirorder of importance. Then, at the end ofthe day, make an itemized list for the nextday and repeat this each following day.”You may not get everything on your listdone for that day, but you will always getthe most important things done. Theman took the note, put it in his pocket,and asked Charlie to send him a bill. ButCharlie said, “No! Just try my idea for amonth, and then send me a check forhow much you think its worth.”Negativity will rob you of energy, it will spill overonto others and will affect your ability to sell.A month later, Charlie received a checkin the mail from the man for $10,000!This was during the 1950’s when that wasa whopping amount of money.Add value to your products and services.When I first started in the advertisingbusiness many years ago, I proudlyshowed a friend of mine an ad I had puttogether. My friend was a very successfulsalesman whom I respect. He read my adcopy – which said “The best prices on theplanet!” – and frowned. “Mike,” he said,“don’t use the sentence about your pricesbeing the ‘best on the planet.’ If you liveby price, you will die by price. So don’t gothat route in your advertising!”I argued, “I do have the best prices andI can prove it.” He said, “That may betrue, Mike, but there will always be someonesomewhere who is willing to do itcheaper, and you will always be fightingan uphill battle about price.“Instead, you should say something like,‘The best value on the planet!’ People canalways argue price with you, but they can’targue value. Value is made up of thingsthat are hard to measure.” He then toldme that when people value something,money is no object. People will always finda way to get anything they truly value!In other words, you can’t always controlproduct price; but that shouldn’t stop youfrom adding more value. Most buyingdecisions are not based solely on price,but on many factors. People consider easeof purchase, an existing relationship withsomeone in sales, and the speed of delivery;these are things you can work toemphasize and improve.Improve yourself and how you treatyour customers. Dale Carnegie, author ofHow to Win Friends & Influence People, said,“People who are unable to motivatethemselves must be content with mediocrity.”You have no control over whatyour competition is doing, so don’t worryabout that. Instead, concentrate on givingyour customers a very positive experiencewhen they buy from you. Work on havinga positive attitude – even with difficult customers.Smile when you speak to them onthe phone and they will hear it. Go theextra mile in getting them what theyneed. Follow up each sale with a note orphone call to make sure they got whatthey needed from you.Never complain. Admittedly, there arelots of things in the world to be negativeabout, but don’t get caught up in it. It willrob you of energy, it will spill over ontoothers and will affect your ability to sell.Instead, when bad things happen, stepback, take a deep breath and ask yourself,“What can I do differently to make somethinggood come out of this? How can Ichange, take control of or improve fromthis situation instead of complaining?”Focus on helping others succeed. I leftthe most important thing for last. The lategreat motivational speaker Zig Ziggleronce said, “If you want to be successful inlife, work hard to make others successful.By doing so, you will automaticallybecome successful!”He was right. Above all, the numberone success principle is to give peopleand their needs first priority. Make themas happy and as successful as you possiblycan – and in every way that you can. It willcome back to you in many ways. You willhave repeat customer business as well astheir referrals. You will sleep well at night.And you will have a happy life! ■Mike French, president of Mike French &Company, Inc., can be reached toll free at 800-238-3934, or visit his company’s Web site atwww.MikeFrench.com.10 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Where We Go From HereBy Jen and Brad Wilson of Jencey Consulting, LLC jenceyconsulting@me.comIdentifying, Understanding, and Finding Quality New Hire CandidatesiStockphoto.comAnyone who has ever run a businessknows how hard it is to locate, hire,and retain good employees. Given adequatetime we look wherever we can,internally and externally. But all too frequentlywe simply don’t have the time todo an exhaustive search using all of theavenues at our disposal. Often times wemay only look internally or simply hirethe first warm body that has a half waydecent skill set. We also know that thisapproach often ends with the person leavingthe company which is a waste of all ofour time, energy, and money.What if there was a way to better screenpeople when they come through yourdoor and actually find a great fit for yourorganization? While we could give you asimple list and talk in broad concepts, wewant to take each key trait and discuss itin more detail.Having read hundreds of articles,attended dozens of seminars, and trainedcountless employees in different industries,we’ve learned that everyone has anopinion about what makes a greatemployee and they are more than happyto share it with you. We will start by clarifyingone thing: a great deal of what youhave read or heard up until now is superfluous,vague, or has nothing to do withtraits but personality. We believe that ifyou utilize our overall approach and conceptscompletely, you can have a greatstaff of employees.As a leading provider of industry training,we have spent a great deal of timewith one particular type of employeewhich is simultaneously the single biggestheadache and the single biggest source ofprofit within any organization. We aretalking, of course, about the salesperson.Over the years one concept we learnedto identify the traits of a great salespersonis with an acronym: CAREER.• C – Creativity• A – Attitude• R – Results• E – Experience• E – Education• R – RelatableEach of these items it vital to finding agreat salesperson. It is essential to understandthat these are not traits that somepeople possess and some people do not.Everyone has these qualities; it is a matterof gauging how much of each they currentlypossess and determining if they canimprove through training and guidance.An easy way to measure these are to rateeach trait on a scale from 1 to 10 – writedown where you think each candidatefalls throughout their interview process.You will also find this to be a helpful exerciseto use on an ongoing basis with newand current employees. Regular evaluationof staff members is vital to any companies’success.Let’s look at a break down of each one.Creativity – Similarly-oriented conceptsare curiosity and critical thinking.Creative thinkers have a fantastic ability tolook at the world around them fromnumerous perspectives to find more efficientways of doing things.Attitude – While obvious, this is commonlyoverlooked when “warm body”syndrome kicks in. The person with theright attitude knows how to work throughproblems without getting bogged downin the fact that something went wrong.Results – Candidates that desire resultsare goal driven and focused, and theyenjoy the challenge of overcoming adversitythrough critical thinking. This desireis frequently illustrated through achievementsand recognition, hitting sales figuresno one else could, or being the topperformer within a group.Experience – Having previous experiencein a sales position can be a definiteplus when it comes to saving time whentraining new employees, but there’s acatch: salespeople have a tendency tobring values and processes from their previousemployer that may not mesh withyour companies culture.Education – While having formal educationis a benefit to many candidates itis not necessarily what we look for. It is thedesire for knowledge and the craving fornew information that we want, someonewho wants to learn on an ongoing basis.Relatable – Sales candidates are theface of the company and they must beable to carry on a conversation with a customerin a manner that makes the customerrelate to them. Being able to talkwith someone comfortably builds trust,and trust is a salespersons’ greatest ally.Don’t miss our next article where wewill expand on these traits by exploringwhy they are important, how to spotthem, how to interview for them, andhow to improve them. Great salespeoplearen’t born, they are bred – as long asthey are willing! ■Jen & Brad Wilson, Jencey Consulting, LLC, have a missionto enhance a yard’s comprehension of their yard managementsystem by streamlining processes and training.Armed with over 20 years of customer service, operationaland technical knowledge they have a “boots on the ground”approach towards process improvement.12 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Insure ThisBy Wells FargoBusiness Interruption InsuranceThe best place to start a conversationabout Business Interruption Insurance(also known as Loss of Businessincome insurance) is to understand whatit is. It insures loss of income in anamount sufficient to cover continuingexpenses and lost profits, if any. If yourbusiness is operating successfully, it isearning enough to cover expensesand generate a profit. If you havea fire which forces your operationsto cease, some of your expenseswill cease or will be reduced. Forexample, you may have a reductionin power or fuel consumption,which will reduce your operatingcosts. Business Interruption Insurancedoes not cover those non-continuingexpenses. However, it willcover those expenses that you willbe required to pay whether yourbusiness is operating or not – suchas loans, taxes, mortgages, etc.Also note that you do not have tobe making a profit to benefit fromBusiness Interruption Insurance.In fact, non-profit organizations frequentlypurchase Business InterruptionInsurance just to cover ongoingexpenses, including salaries of keypersonnel. So do not consider this coverageonly as insurance against lost profits.Of course, not every shutdown of yourbusiness will trigger coverage. Before youcan even think about recovering a lossunder a Business Interruption policy,there must first be direct physical damagefrom an insured peril to your premises– during the term of the policy – thatcauses an interruption of normal operationsand a loss of earnings. The policywill pay for the loss of earnings duringthe time required to restore the businessto normal operating conditions or untilthe limit of business interruption insuranceis exhausted.The place to start when determiningthe appropriate amount of businessiStockphoto.comincome insurance is with your accountingrecords. Ideally, the entries in youraccounting journal, the record ofaccounts in your general ledger, and yourincome statement will provide the basicinformation you need to calculate thecorrect amount of Business InterruptionInsurance needed. Each insurance companyin the marketplace has a businessincome worksheet form you can use tocalculate the correct amount as well.Most of these worksheets will take youthrough an exercise that will help you tocome up with an estimated length oftime it will take you to get back to “preclaim”business operations. Once youknow this, and the amount of monthlyearnings and net profits, it is relativelysimple to calculate how much coverageto buy.The final question you need to answerbefore buying this coverage is whether ornot you should cover “ordinary” payroll.When you suffer a severe claim and yourbusiness is going to be shut down for anextended period of time(such as 6-9months), you will most likely not be ableto afford to pay your ordinary (as comparedto key) employees if you have norevenue coming in. If you went to themand advised them that they were out ofa job until your business operationsresume 6 to 9 months down the road,would most of them simply go home andwait 6 to 9 months without a paycheckuntil you called them back towork? Or would many of them beforced to take a job elsewhere inwhich case you may not ever getthem back once you are ready toresume operations. Many businesseshave a lot of “ordinary payroll”employees that are really“key” to the success of your operationthat you would not want tojeopardize losing in the event youcould not pay them for an extendedperiod. Therefore, you maywant to include “ordinary payroll”in your business interruption calculation.That way, you would beable to pay them their wages andbenefits during the period of reconstructionand retain themgoing forward.In summary, the key to BusinessInterruption Insurance lies in understandingwhat the potential for a businessinterruption loss is – future earnings,length of the shut-down and additionalexpenses incurred, including coveringordinary payroll. Business InterruptionInsurance is the only insurance availableto “insure your income statement.” If youfeel it is critical to have your income statementguaranteed, you may want to seriouslyconsider this coverage, which canbe purchased as part of your PropertyInsurance. ■For more information on how Wells Fargo InsuranceServices can benefit your business,contact Bill Velin at 800-328-6311, ext. 3039,direct 952-830-3039, or by e-mail bill.velin@wellsfargo.com.14 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Safety MattersSubmitted by the ARA Safety CommitteeHazard CommunicationToxic and Hazardous SubstancesOSHA Standard Number1910.1200OSHA Hazard CommunicationsStandard (HCS)The occupational safety and healthhazard communication standard requiresthe classification of the potentialhazards of chemicals, and this information,along with appropriate protectivemeasures must be communicated toemployees.Material Safety Data Sheets(MSDS)sA Material Safety Data Sheet (MSDS)is a document that contains informationon the potential hazards (health, fire,reactivity and environmental) of a particularchemical product and how towork safely with that product. It is anessential starting point for the developmentof a complete health and safetyprogram. It also contains information onthe use, storage, handling and emergencyprocedures all related to the hazardsof the material. The MSDS containsmuch more information about the materialthan the label.MSDSs are prepared by the supplier ormanufacturer of the material. TheMSDS is intended to tell what the hazardsof the product are, how to use theproduct safely, what to expect if the recommendationsare not followed, what todo if accidents occur, how to recognizesymptoms of overexposure, and what todo if such incidents occur.Product distributors are responsiblefor ensuring that their customers areprovided a copy of the MSDS. Upon purchaseor receipt of a product, you as anemployer must have an MSDS for everycommercial product you use in yourfacility.To help ensure that your supplierscomply with OSHA requirements, itSue Schaulscan’t hurt to add the following sort ofstatement to your purchase orders:“As required under the OSHA HazardCommunication Standard 29 CFR1910.1200, a material safety data sheet(MSDS) must precede or accompany theinitial shipment of any hazardous materialdefined as such under the Act. For itemspreviously ordered, an MSDS must also besupplied if the MSDS has changed since theprevious shipment.”Employers must maintain copies ofMSDSs for each chemical in the workplace.Employers may discard a materialsafety data sheet for a mixture, if thenew data sheet includes the same hazardouschemicals as the original formulation.If the formulation is differenthowever, then the employer must maintainboth data sheets for at least 30 years.ComplianceImproper compliance with the HazardCommunication Standard (which includesMSDS’s) is the most frequentlycited violation in the manufacturing,transport, wholesale, retail and servicesindustries, and it is in the top five in allother categories.Communication ProgramYou must develop and maintain a writtenhazard communication program forthe workplace which should include:• Lists of hazardous chemicals present;• Labeled containers of chemicals inthe workplace, as well as labeled containersof chemicals being shipped toother workplaces;• A plan for the preparation and distributionof safety data sheets toemployees and downstream employers;and,• An employee training programregarding hazards of chemicals andprotective measures.You must make the written hazardcommunication program available,upon request, to employees, their designatedrepresentatives, and OSHA.Employers must have a safety data sheetin the workplace for each hazardouschemical which they use.Safety data sheets must be readilyaccessible during each work shift toemployees when they are in their workarea(s). (Electronic access and otherThe MSDS is intended totell what the hazards of theproduct are, how to use theproduct safely, what to expectif the recommendations are not followed, what to doif accidents occur, how to recognize symptoms ofoverexposure, and what to do if such incidents occur.alternatives to maintaining paper copiesof the safety data sheets are permitted aslong as no barriers to immediateemployee access in each workplace arecreated by such options.)Training ProgramEmployers must provide employeeswith effective information and trainingon hazardous chemicals in their workarea at the time of their initial assignment,and whenever a new chemicalhazard the employees have not previouslybeen trained about is introducedinto their work area. Information andtraining may be designed to cover cate-16 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Safety MattersContinuedgories of hazards (e.g., flammability, carcinogenicity)or specific chemicals.Chemical-specific information mustalways be available through labels andsafety data sheets.Employee training must include atleast:• Methods and observations that maybe used to detect the presence orrelease of a hazardous chemical inthe work area (such as monitoringconducted by the employer, continuousmonitoring devices, visualappearance or odor of hazardouschemicals when being released, etc.);• The physical, health, simple asphyxiation,combustible dust, andpyrophoric gas hazards, as well ashazards not otherwise classified, ofthe chemicals in the work area;• The measures employees can take toprotect themselves from these hazards,including specific proceduresthe employer has implemented toprotect employees from exposure tohazardous chemicals, such as appropriatework practices, emergencyprocedures, and personal protectiveequipment to be used; and,• The details of the hazard communicationprogram developed by theemployer, including an explanationof the labels received on shippedcontainers and the workplace labelingsystem used by their employer;the safety data sheet, including theorder of information and howemployees can obtain and use theappropriate hazard information.HCS to GHSNew 2012 changes to OSHA’s HazardCommunication Standard (29 CFR1910.1200) are bringing the U.S. intoalignment with the Globally HarmonizedSystem of Classification and Labelling ofChemicals (GHS). The Hazard CommunicationStandard of 1983 gave theworkers the “right to know,” but the newGlobally Harmonized System gives workersthe “right to understand.”The new Hazard CommunicationStandard still requires chemical manufacturersand importers to evaluate thechemicals they produce or import andprovide hazard information to employersand workers by putting labels on containersand preparing safety data sheets.However, the old standard allowedchemical manufacturers and importersto convey hazard information on labelsand material safety data sheets in whateverformat they chose. The modifiedstandard provides a single set of harmonizedcriteria for classifying chemicalsaccording to their health and physicalhazards and specifies hazard communicationelements for labelling and safetydata sheets.Major changes to the Hazard CommunicationStandard:• Hazard classification: Chemical manufacturersand importers arerequired to determine the hazards ofthe chemicals they produce orimport. Hazard classification underthe new, updated standard providesspecific criteria to address health andphysical hazards as well as classificationof chemical mixtures.• Labels: Chemical manufacturers andimporters must provide a label thatincludes a signal word, pictogram,hazard statement, and precautionarystatement for each hazard class andcategory.• Safety Data Sheets: The new formatrequires 16 specific sections, ensuringconsistency in presentation ofimportant protection information.• Information and training: To facilitateunderstanding of the new system,the new standard requires that workersbe trained by December 1, 2013on the new label elements and safetydata sheet format, in addition tothe current training requirements.New MSDS FormatIn order to promote consistent presentationof information, the GHS nowrequires the MSDS to follow the 16-sectionformat established by the AmericanNational Standards Institute (ANSI)standard for preparation of MSDSs.By following this format, the informationof greatest concern to workers is featuredat the beginning of the data sheet,including information on chemical compositionand first aid measures. Moretechnical information that addressestopics such as the physical and chemicalproperties of the material and toxicologicaldata appears later in the document.The 16 sections are:• Identification• Hazard(s) identification• Composition/information on ingredients• First-aid measures• Fire-fighting measures• Accidental release measures• Handling and storage• Exposure controls/personal protection18 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


• Physical and chemical properties• Stability and reactivity• Toxicological information• Ecological information• Disposal considerations• Transport information• Regulatory information• Other informationSample MSDS / GHSGo to the links below for a copy of asample MSDS and GHS for your reference:• MSDS MATERIAL SAFETY DATASHEET – NASA Standard 6001Igniter:http://msdsauthoring.com/images/nasa_standard_6001_igniter_msds.pdf• GHS MATERIAL SAFETY DATASHEET – Hydrogen Peroxide:http://msdsauthoring.com/wp-content/uploads/2011/07/Hydrogen_Peroxide_20-40_USA_sds.pdf ■ARA SAFETY TIP ON OSHA'SHAZARD COMMUNICATION PLANCLIP&SAVEIf your shelves look like these shelves (left), you may be finedby OSHA! Ensuring that your facility has a complete and updatedWritten Hazard Communication Plan which includes MSDSsand a training program for your employees could save you thousandsof dollars in fines!OSHA requires that chemical manufacturers must identifythe potential hazards of each chemical product and how towork safely with that product in a document called a material safety data sheet (MSDS). Manufacturersor suppliers then must ensure that their customers – YOU – are provided a copy of theMSDS for each chemical product you use. As part of your written hazard communication plan,you must make these sheets readily accessible during each work shift to employees when theyare in their work area(s). Many employers keep their MSDSs together in a large binder/spiralnotebook and/or in an electronic format.In addition to distributing MSDSs to your employees, your plan also must include:• Lists of hazardous chemicals present (remove old chemicals from shelves!);• Labeled containers of chemicals in the workplace, as well as containers of chemicals beingshipped to other workplaces; and,• An employee training program addressing hazards of chemicals and protective measures.So don’t delay. Clean off your shelves and read the attached protocol so that you know exactlywhat your hazard communication plan should include and then log onto the following link belowfor a sample MSDS – www.osha.gov/dsg/hazcom/msds-osha174/msdsform.html.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 19


That’s My OpinionBy Ron Sturgeon rons@rdsinvestments.comTracking Your Web site's PerformanceWhen making an analysis of your Website’s performance, you must look atthings like targeting the right traffic, creatingcontent, getting the users’ attention,and converting those users intosales. One important item that is overlookedin the quest to increase revenuethrough your Web site is in tracking theseefforts and how looking at metrics tohelp you to continually optimize yourcampaigns and improve performance.Just as you track key metrics of yourbusiness such as sales, vehicles dismantledper day, warranty sales, returns, andso on, it’s equally as important to trackmetrics to measure the performance ofyour Web site to determine what worksand what doesn’t.What Should You Be Tracking?This answer will differ slightly dependingon what types of campaigns you’rerunning, and what the goals and overallstrategy of those campaigns are. Generallywe track high-level metrics, such asunique visitors, pages per visit, andbounce rate, on a month over monthmeasurement. These are easy metrics thatshow whether you are attracting visitorsand whether your content is engaging tothem. However, there are other metricsthat are important to understanding theeffectiveness of your campaigns.For instance, tracking keywords andphrases that are being used to find yourWeb site will help you to understand howwell your keyword targeted content isworking. If you are seeing an upwardtrend for the keyword phrase “used Fordparts” and you’ve been concentrating oncreating content for that key phrase, youcan conclude that your content creationeffort in that area is working. Since youknow it’s working, you can use the sametactics to get traffic for other key phrasesrelevant to the parts you sell.You can also track where your visitorscome from. If you’ve been working toiStockphoto.comexpand the traffic within your customerradius, you’ll want to understand if thosenumbers are increasing or decreasing.You might also track whether your organictraffic (traffic that comes to your Website via natural or unpaid searches)isincreasing or decreasing. If you are usingsearch engine optimization (SEO), moreorganic traffic is exactly what you’re lookingfor as return on your investment.Additionally, it is important to trackconversion rates. You can convert usersby getting them to fill out a contact form,subscribe to your newsletter, make a purchase,and so on. But how do you knowwhat percentage of potential conversionsare actually converting? Or how manyusers are abandoning the process? Settingup conversion tracking on all contactforms, subscription forms, and othermulti-step processes is vital to understandinghow much traffic is convertingand, ultimately, converting to sales.Split Testing Your CampaignsYou may or may not have heard of A/Btesting or split testing before, but this isanother important kind of test you canuse with your campaigns. Split testing isthe process of creating multiple landingpages which have the same purpose. Forexample, you may have set up a landingpage for used Ford engines.On this page, your conversion goal isgetting the visitor to dial a phone numberyou’ve setup for tracking the campaign.In a split test, you set up anadditional landing page; however, thispage emphasizes different call to actions,and might have a slightly different layout,fewer items on it, different colors,etc. The idea is to test different versionsof the same page to see which one is thebest at getting visitors to perform theconversion action for the page.What Should You DoWith This Information?Let’s talk a little about what actions youshould take when looking at reports eachmonth. The monthly reports on yourWeb site’s performance will tell youwhat’s working and what’s not. Knowinghelps you make the most profitable useof your time by focusing resources on thestrategies that are working best. Youmight also uncover things you hadn’tthought about before, such as a set ofkeywords or phrases that are bringing inlots of traffic. If you’re paying a firm tomanage your SEO or pay per click campaigns,you will want to know what kindof return you’re getting on your investment,and which efforts are profitableand which are not.Free ToolsYou can use Google Analytics to trackall of these metrics and is free and easyto install on your Web site. It can delivermonthly reports to your inbox on thefirst of each month.I can help you get started as well by givingyou an SEO scorecard on your existingWeb site and free advice about howto improve your results. E-mail your Webaddress with “SEO scorecard” in the subjectline to me, and I will be glad to showyou some ways you can do better.Remember only you can make businessgreat! ■Since 2001, great ideas to improve your autorecycling business have been found on Ron’sWeb site, www.autosalvageconsultant.com,the definitive source for recyclers’ managementand training needs.20 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


On the RoadBy Sandy Blalock bconsulting4u@gmail.comWorking IndustriouslyEveryone Time does textfly when you enjoy what youtext are doing and my time has flown byover the last few years. Last time, you readabout endit. my ■ adventures working with autorecyclers in New Mexico and now Iwould like to tell you about the greatautomotive recyclers in Utah.In the fall of 2011, I began travelingaround this beautiful state with a diverseclimate including snowcapped mountains,national monuments, water recreationalsports, and a diverse culture.As I drove from one end of the state tothe other, at times it was hard to keep myeye on the road. The mountains enticeyou with their rich bold colors and, if youare a skier, they boast some of the bestsnow in the country. I love the colors ofthe southwest, where the greens aremore muted and Utah’s red rock formationsare breathtaking.While Utah’s official motto is “Industry,”it is also known as the Beehive state – sonamed by the earlier settlers predominatelysince bees are famously hard workers,toiling almost endlessly for thewell-being of the hive and the bees livingwithin it. This state was built from scratch,in spite of rough conditions and harshland, with little resources other than eachother and hard work, their “industry.”I found that the auto recycling industryin Utah embrace their state motto, willingto work together for the good of the legitimateindustry in their beautiful state.As I drove from St. George to Logan,and many points in between, I admiredthe tenacity and diversity of Utah autorecyclers. I visited many long-time recyclerswho have more than perfected theircraft and also found a few newcomers tothe industry willing to learn more aboutwhat membership in a state associationhas to offer them.As in many of our states, Utah once hada thriving state association that hadwaned, not due to disinterest but becauseauto recyclers have businesses to run andan association cannot survive on a fewinvesting countless hours to preserve it.This is a common pattern and is a compellingreason I work to get people backtogether on issues so important to all ofus. We are only as strong as our weakestlink and auto recycling weak links arestates without strong and engaged stateassociations.In short order I had many willing tobegin again and get an association backto work for the best interests of Utah’srecyclers. We organized the Utah <strong>Automotive</strong><strong>Recyclers</strong> <strong>Association</strong> (UARA),with elected officers and a board, andhave not looked back. In fact, we lookedforward to being part of the changingscenery in the regulatory side of ourindustry and met with many of the regulators,establishing working relationshipsthat will be of mutual benefit to not onlyrecyclers, but the state of Utah and all thecommunities our members serve.Early in 2012, three months afterrelaunching UARA, we found ourselveswith an opportunity to have a largeimpact in repealing legislation thatstripped auto recyclers of their bid cards,allowing unlicensed buyers to buy salvagein Utah with little or no oversight. Utahrecyclers suddenly found themselves inthe driver’s seat of this national dilemma.I am proud to say we pulled togetherand worked diligently with our lobbyist,industry partners, and with SenatorStephen Urquhart who was determinedto right the wrong that had repealed thebuying restrictions in 2009. SenatorUrquhart had a vested interest in helpingthe industry, and the state of Utah, bothof which he now understood were hurtwhen he sponsored the repeal in 2009 ofthe Utah Salvage Buyers Bid Card.It is not often that a legislator will admitthey may not have had all the facts whenhe sponsored the initial repeal, butStephen Urquhart is not just any legislator.He is a highly respected man of greatWe are only as strong asour weakest link and autorecycling weak links arestates without strong andengaged state associations.moral standards who was able to see thatpromises made during the appeal in 2009did not materialize and, in fact, not onlyhurt our industry but resulted in lost revenuesfor the state of Utah.I have truely enjoyed working with thisgreat group. I was able to catch up withseveral longtime friends including Milesand Colin Crabtree and Gordon Wade, aswell as making several new friends alongthe way including UARA President ChrisMantas, Tear A Part Auto Recycling of SaltLake City. Chris is a talented young recyclerwith bold ideas on driving his businessand those of all UARA members.Chris is backed up by a strong executivecommittee, with Dusty Rowland ofRowland Auto Wrecking as VicePresident and Bruce Labrum of LabrumAuto Wrecking as Treasurer. The UARABoard of Directors include Miles Crabtreeof Crabtree Auto Recycling, Zach Russellof All Truck and Car, Mike Vanikiotis ofA-1 Auto Parts, Paul Branch of SouthBountiful Auto, John Roberts ofTransWest Auto and Truck Parts, GordonWade of Dixie Auto Salvage and JonPeterson of Western Auto Wrecking.In working with this multi-talentedgroup, I have found that the two thingsUARA members share is the love of automotiverecycling and love for theirBeehive state. ■Sandy Blalock is a consultant to the auto recyclingindustry, traveling to help states withoutan industry association formulate them.She is the former the owner of Capos <strong>Automotive</strong>Recycling and an ARA Past President.22 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Advice CountsBy Jim Counts jimcount@wans.netWhat Part of “I Got One” is Selling?Have you listened to your sales peoplelately and thought about what youare hearing? If you have, you are probablyamazed at how little selling actuallytakes place. Their actions show that theythink their job is to answer the phone(before it rings the fourth time) andadvise the customer if they have a part.Doesn’t this sound more like an informationdesk than a sales call? Maybe weshould be more honest when we answerthe phone and say, “Information.”Owners often get upset because thephone is ringing. Be careful when yousay, “Will someone answer that phone?”because you may just get your wish. Thesalesperson will drop the person callingabout an engine or transmission so theycan jump on to that flywheel or caliperbolt call.I don’t want to be too rough on salespeople– let’s be realistic, they get very littletraining. Most of the time they musttrain themselves. They learn what we door do not want when we correct them. Icall this “Train by Holler.” They make amistake and we holler.If we create a no-win situation, we mayteach them to take the safe course ofaction and quote only what the screensays. Keep in mind that salespeople getcriticized for what they sell, not what theydon’t sell. If they go off-script, we walk upto them, drop an invoice in front of them,and want to know why they sold this partfor less than the screen price. How oftendo you sit with them and ask why they didnot sell that part you have ten of?We talk to a lot of salespeople abouthow to close sales and how to sell partsand labor warranties. Most of the time, Ifind they have never been shown how torecognize what a customer needs or howto satisfy those needs. We tell them toanswer the phone, to look up the part,and tell the customer if we have it. If thecustomer wants the part, we tell them tobe sure to get the method of paymentand arrange delivery. But,when and how did we teachthem to turn the phone callinto a sale?How Should WeTrain Employees?First, we have to decide whatresults we want. For the salesperson,we probably wantthem to answer the phone ina courteous manner, find outwhat the customer needs, when theyneed it, and how much they are willingto pay for it. Now that seems pretty simple.However, if we listen closely, we probablynotice they rarely get to the “whenthey want it” part of the conversation. Thesalesperson rarely gets to sell; they are toobusy running the information desk. If thecustomer decides, on their own, to buyour part, the salesperson becomes anorder taker.A professional salesperson knows thatif they want to close sales, they have tostay in control of the conversation. Theyshould ask the questions and the customeranswers the questions. But as soonas our salespeople tell the customer wehave what they need, the customer takescontrol of the conversation and start askingthe questions; and after they get theinformation they want, they hang up. So,again, I ask, what part of that is selling?Salespeople don’t know how to sell, sothey believe that a lower price is theanswer. And a lower price is the answerwhen we run an information desk andhave order takers. How do we solve this?Sales professionals should skip the “Igot it!” part and start closing the sale.Unless we are talking to an insuranceadjuster, nothing is gained by telling thecaller we have the part. Assume they wantit and close the sale. Of course, this meanswe are going to need closing skills.Closing skills are those things a salespersonsays to get the customer to take theiStockphoto.compart and pay a price that is agreeable toboth parties. It takes me a whole day toteach the “why’s and how’s” of the closingprocess, but you can start by listening towhat your people say and work on assumingthe sale instead of waiting for it.If you want your salespeople to receiveformal training, something other than“Go watch Bob”, send them to a salestraining class. We teach seminars that arerecycling industry specific. We use realexamples and show the salesperson howto fulfill the customer’s needs at the sametime we meet the owner’s needs andeveryone makes money.Wouldn’t you like to be able to payyour customer for the cost of labor toreplace the defective part they boughtfrom you, at no cost to you? We can teachsalespeople how to do that. As an owner,you should always go to the sales trainingclass at least once so learn what changesare needed to implement.Otherwise, your sales team could tellyou they did not learn anything new.Then they go right back to running aninformation desk and asking you to lowerthe price. Remember, we can sell almostanything, if we are willing to cut the priceenough, but we may go broke in theprocess! ■Jim Counts, of Counts Consulting Ltd. providesorganizational and financial development fordismantlers. He can be reached at 817-238-9991 or visit www.countsconsulting.com.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 23


MomentumBy Donald Cooper www.donaldcooper.comHave You Thought of “Everything”?To “own” your customers and not letyour competitors get their foot in thedoor, you need to try to “think of everything.”This may sound like an impossibletask but when you take the time to trulythink and feel like a customer, it will be alot easier than you think, and the resultswill amaze you!First, think and feel through theprocess of choosing, buying and usingwhat you sell, step-by-step. Then, thinkand feel through the process of doingbusiness specifically with you. What dothose experiences look like and what dothey feel like?Here’s another example. LePage’s nowmakes nine different kinds of householdglue specially formulated to stick a varietyof materials from leather, to glass, to steel.That’s enough different types of glue toconfuse anyone – but LePage’s hasthought it through.Each glue is clearly numbered, both onthe tube and on the package, and all nineglues are presented, in sequence, in aconvenient and attractive retail display.On the back of the packaging for eachtype of glue they’ve put a simplechart that shows whichglue, by number, works bestfor what materials. If you’regluing styrofoam, # 7 is best;if it’s porcelain, you need # 9.Sales have increased tremendouslyand customers aredelighted with the simplicityof getting perfect resultsevery time.Here’s an example of not thinking itthrough. The Canadian Tire store inGravenhurst, Ontario set up a convenientprocess designed to let you drop your caroff for service after store hours by fillingout a simple work order and putting it inan envelope with your car keys. For reasonsof security, you then drop the envelopethrough a slot in the door and thetheory is that they will repair your car andcall to advise you when it’s ready.Only one problem, they didn’t think itthrough. The slot in the door is not bigenough to fit the envelope. Like I said, itain’t rocket science!So, to “own” your customers and keepFour Steps to Delivering a “Customer-Owning” ExperienceAre you actually delivering the quality of customer-owning experience that you promise, and thatyour customers want? Create a small task force of a few of the best minds and hearts in yourbusiness and work through the following 4-step process.1) Create a complete list of all the points at which your customers “touch” or experience yourbusiness in any way. This will include every interaction with your staff, your products or services,your physical facilities, your advertising, packaging and promotion and your policies andprocesses.2) Describe exactly what experience you want your customers to have at each “touch point.”3) Determine what experience you’re actually delivering, right now, at each “touch point.” “Thebeginning of wisdom is the recognition of reality!” Ask your front-line people for their input. Theyhear customer complaints every day. Ask customers for their input or use professional “mysterycustomers” to measure your experience delivery.4) Determine what must be done to “close the gap” between the experience that you want todeliver at each “touch point” and the reality of what you currently are delivering. Commit to specificaction. Who will do what, by when ... and hold people accountable!Finally, follow up, constantly measure, reward success and deal with non-performance.How can these four steps help you create a world-class customer-owning experience in yourbusiness?iStockphoto.comthem coming back, here are seven questionsthat will help you to “think of everything.”• When it comes to buying what we sellwhat are our target customers confusedor stressed about?• When people do business with us,what do they want to do, what do theyneed to know and how do they want tofeel?• Are we “easy?” Easy to find, easy to getto and is what we do easy to understand?• What kind of information or coachingmight our customers need to wiselychoose and effectively use what we sell?• What might we be doing as a businessthat is stressing our customers and perhapseven driving them away? Thinkabout how we look, how we perform, ourattitudes, our policies, selection andprices.• Do we really understand how weimpact our customers functionally, emotionallyand financially when we don’t“deliver?”• What little simple acts of kindnesscould we offer that would amaze anddelight our customers?So, how can you use these questions tohelp you to “think of everything?” ■Donald Cooper is a Toronto-based internationalmanagement speaker and coach. Hehelps business owners and managers rethink,refocus, and re-energize their business to sellmore, manage smarter, grow their bottom line,and have a life. Reach him at (416) 252-3704 or by e-mail atdonald@donaldcooper.com. Visit www.donaldcooper.com.24 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Tech KnowledgeBy Andrew MacDonaldA Case of Range Anxiety – Battery Recycling These DaysIrecently returned from an ARA meetingin Fort Myers, Florida. Not only wasmy plane delayed to a 3 a.m. arrival time,but my luggage got lost and when I gotto my car the gas gauge read empty andthe dash said I had zero kilometer rangeleft. I remembered that 5 days prior, tightfor time, I had driven with zero kilometersleft about ten kilometers. I also realizedthat at this late hour, the nearest gasstation was not for at least another tenkilometers. It’s at this point I start wonderinghow much fuel is actually left inthe tank and how much energy I wouldbe able to extract from that fuel.This concept is known as EnergyDensity. It’s how much energy is in a givenvolume of “stuff.” Now for traditionalcombustion engines, the “stuff” is gasolineor diesel, and the magic number is10. You can get about 10 kWh for everyliter of fuel you have.When it comes to electric vehicle batteries,energy density is the main reasonthey are taking so long to come to market.The more efficient Nickel MetalHydride (NiMH) batteries only get about0.2kWh for every liter of material (only 1– 2% of gasoline!).Most hybrid vehicles to date use NiMHbatteries. Some of the newer electric vehicleson the market (such as the Canadianmade Rav4 EV) use lithium ion batterieswhich can have upwards of 0.4 kWh, stillonly a fraction of the energy storage availablein gasoline. Despite this, there is stilla lot of energy and risk for people workingwith these batteries. Getting burnedby only 1% of your gas tank is still a prettybad burn; batteries have the sameamount of energy but in the form of273V electricity.Core QuestionsThe main questions we are tackling inthe ARA Technical Advisory Committeeare: 1) How do you safely de-power thebatteries? 2) How do you dismantle thevehicles safely? 3) How doyou test the battery toknow if it’s good to sell forresale or repurposing? 4)What are the safe shippingand handling procedures?and 5) Who will TOYOTA RAV4 EVbuy the materials for recycling(hopefully at a profit)?First, there are available resources forfirst responders on how to identify wherethe components of hybrid vehicles canbe found (battery, motor, capacitor, highvoltage cables, etc.) and how to quicklycut the power. I have two apps on myphone – QRG from the NationalAlternative Fuels Training Consortium,and Extricate from Moditech RescueSolutions – both have detailed schematicsfor all makes and models.The dismantling question is not as easyto answer. ARA’s Hybrid Vehicle DismantlingGuide details many makes and modelswith safety procedures for dismantling.OEMs such as Toyota have set up a Website (https://techinfo.toyota.com) withinformation on how to safely disassembleToyota hybrid vehicles. GM has gone astep further on www.recyclemybattery.com by including the disabling/dismantlinginformation, and recommendationsfor storage, shipping, and handling.Testing the battery to know if it’s goodto sell for resale or repurposing is, well,currently expensive. There is some equipmenton the market that can tell you thestate of health, charge, and de-powerhybrid batteries. Midtronics makes theGRX-5100 EV/HEV Battery Service Toolthat can de-power, balance, and chargethe batteries. It comes with many adaptersfor various vehicle connections.The problem in the auto recyclingindustry is that we usually don’t receivevehicles in good working order. How canwe safely remove the battery and test it asa stand-alone unit for things like remainingcharge, capacity, and number ofremaining charge cycles?All of these items wouldtell us whether the batteryis good for reuse or repurposing,or whether to sellit to a scrap recycler.Shipping and handlingis currently being addressedby the OEMs in collaboration with thebattery recycling companies and theARA. Considerable factors are batteryshelf life, proper storage temperatures,and is there a minimum charge, just toname a few.Powering Up ProfitSo what does all of this have to do withenergy density? It is one of the reasonswhy recycling hybrid and EV batteriesmay prove difficult to make profitable –let alone financially neutral. Low energydensity means batteries are big andheavy. Given their sheer size and weight,shipping them to a battery recyclingprocessor can be very expensive.Another issue may be the materialsthemselves. The “M” in NiMH stands formetal, which is a compound of a rareearth mixture and nickel, cobalt, manganeseand/or aluminum. These materialshave value that should be able to berecycled for a profit. Lithium-ion batteriescontain a lithium compound; lithiumis a plentiful resource and therefore notworth as much on the open market.The ARA will continue to work withthe OEMs and battery recycling industryto figure out all the best practices. Ideallywe’d all like to turn a profit on them.Oh, in case you were wondering aboutthe end of my story, I made it to the gasstation, and eventually home, but I suredidn’t make it to work on Monday. ■Andrew MacDonald is an owner of MaritimeAuto Parts, and Chair of ARA's Technical AdvisoryCommittee. Formerly, from 2007-2010 heworked with Toyota in Quality Control Engineeringon the Toyota Rav-4 at TMMC-Canada.26 <strong>Automotive</strong> Recycling | January-February 2013


SuccessMaking Sense ofRETHINKING CHANGESuccess is always achieveable ifyou follow the right formula for it.Why should you ever settlefor anything less?BY TO M M O R R I SiStockphoto.com/Federico Caputo28 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


(2) A strong CONFIDENCE that we canattain the goal.Inner attitude is a key to outer results. Over a centuryago, Harvard philosopher and psychologistWilliam James learned from championship athletesthat a proper confidence should be operative in allour lives. In any new enterprise or challenge, weneed upfront initial faith in what we’re doing. Andwe need resilient confidence, confidence that cantake its lumps and keep on going. James called it precursivefaith – faith that “runs ahead of” the evidence.Sometimes we may have to work hard to generatethis attitude. But it’s also well worth the work it takes,because it raises our objective prospects for success.The best confidence naturally arises out of competenceand then augments it. Of course, it’s no guaranteeof success. But it is among the chief contributorsto it. In times of great change and economic unceromepeople seem successful in nearly everything they do. Others constantlystruggle, almost regardless of the situation. What makes the difference?What do the most successful people have in common that helps lead toStheir accomplishments?And here’s another importantquestion. In every period ofhuman history, however challenging,there have been people who not only survived,but experienced great success. How then can we beamong such people in our own time?I’ve come to believe that there is something like apersonal and organizational toolkit for success. FromPlato and Aristotle to the present day, the wisest peoplewho have ever thought about life achievementhave left us bits and pieces of powerful advice forattaining true success in nearly anything we do. I’veput these great ideas together into a simple frameworkof seven universal conditions for success. Letme lay them out in the simplest possible way, andthen we’ll briefly look at what they mean.The 7 Cs of SuccessFor the most deeply satisfying and sustainableforms of success, we need to bring into any challenge,opportunity, or relationship these inner traits, orconditions:(1) A clear CONCEPTION of what we want, avivid vision, a goal clearly imagined.(2) A strong CONFIDENCE that we can attainthat goal.(3) A focused CONCENTRATION on what ittakes to reach the goal.(4) A stubborn CONSISTENCY in pursuing ourvision.(5) An emotional COMMITMENT to the importanceof what we’re doing.(6) A good CHARACTER to guide us and keep uson a proper course.(7) A CAPACITY TO ENJOY the process along theway.There are certainly many other concepts oftenassociated with success, but I’m convinced that everyother one of them either falls short of the universalapplicability test or else is just a version or applicationof one of these seven in specific situations.The 7 Cs give us the most universal, logical, integrated,and comprehensive framework for success inwhatever we do. I’d like to share a quick word abouteach. We need:(1) A clear CONCEPTION of what wewant, a vivid vision, a goal clearlyimagined.In any facet of our lives, we need to think throughas clearly as possible what we want to accomplish, andwhat we’d like to see happen. True success starts withan inner vision, however incomplete it might be. Theworld as we find it is just the raw material for what wecan make it. We are meant to be artists with our energiesand our lives. And the only way to do that well isto structure our actions around clear goals. Vaguethoughts cannot motivate specific behavior. We needclear goals, as precise and specific as we can makethem. In times of change, this is more importantthan ever, however difficult it might seem. The fightfor clarity in our vision for what we want to make happenis well worth the ongoing effort it takes.Two great pieces of advice on goal setting comedown to us from the ancient world. First, every exercisein goal setting should be an exercise in selfknowledge.“Who am I as a person? What’s right forme? Who are we as a business? What’s right for us?”Second, we need inner boldness in setting new goals,bigger goals, and realizing that our goal settingshould never stop. Life is supposed to be a series ofadventures. Great goals make for great adventures.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 29


RETHINKING CHANGEtainty, confidence is one of the first things to disappear.We should follow the champions and guard it in ourhearts. If you find that you need help with confidence,try to help someone else with it, and you may be surprisedhow it quickly rises in your own spirit.(3) A focused CONCENTRATION onwhat it takes to reach the goal.Big dreams just lead to big disappointments whenpeople don’t learn how to chart their way forward,step-by-step. And one of the greatest pieces of adviceever given about achieving any big dream is to“Divide then Conquer.” Divide it up, break it down,and then take it on, step by step. If I want to be at acertain point a year from now, where do I have to besix months from now? Howabout three months fromnow? What can I be doingtoday and tomorrow?Daunting goals becomemanageable objectives aswe divide and conquer.Focus on what’s first, thenon what’s next. Success at anything challengingcomes from planning your path and then puttingthat plan into action.Gestalt psychologists even teach us that a newmental focus generates new perceptual abilities.Concentrating your thought and energy in a newdirection, toward a clear goal, you begin to seethings around you that you might have missedbefore – things that relate to the goal you’ve set andcan help you attain it. This focus can allow you to setintermediate goals and then more immediate onesto get your plan going, and then act, and adjust asyou go. Even a flawed plan can start you off and helplead you to where you can discover a better one. Acontinually focused concentration of thought andaction is key.(4) A stubborn CONSISTENCY inpursuing our vision.The word ‘consistency’ comes from two Greekroots, a verb meaning “to stand” and a particlemeaning “together.” Consistency is all about standingtogether. Do my actions stand together with mywords? Do my reactions and emotions stand togetherwith my deepest beliefs and values? Do the people IThe more you can enjoythe process of what you’re doing,the better the results tend to be.It’s easier to set creative goals.Confidence will come more naturally.work with stand together? This is what consistency isall about. It’s a matter of unifying your energy andefforts in a single direction.Chinese philosophers call it harmony and use theimage of moving water, which can flow around anyobstacle or push it out of the way. They say, “Be likewater.” Flow forward to your goals, adapting to yourcircumstances and, at the same time, staying true tothe essence of who you are, and making sure thatyour actions are harmonious with what you mostdeeply want. Inconsistency defuses power. Consistencymoves us toward our goals.(5) An emotional COMMITMENT to theimportance of what we're doing.Passion is the core of extraordinary success. It’s akey to overcoming difficulties, seizing opportunities,and getting other people excited about your projects.Too much goal setting in the modern world hasbeen all about thoughts, and has ignored the feelingsand passions. Philosophersappreciate the role ofrationality in human life.But we know that it’s notjust the head, but also theheart, that can guide us onto the tasks right for us,and keep us functioning atthe peak of our abilities.Find a way to be passionate in what you do, thencommunicate that enthusiasm and commitment tothe people you work with, showing that you are alsocommitted to them as your partners for the goalsyou have together. People are attracted to peoplewho care. You’ll all go far as a result.(6) A good CHARACTER to guide us andkeep us on a proper course.Character inspires trust. And trust is necessary forpeople to work together well. Good character isrequired for great collaboration. In a world in whichinnovative partnerships and collaborative strategiesare increasingly important, the moral foundation forworking well together matters more than ever before.And good character does a lot more than justprovide for trust. It has an effect on each individual’sown freedom and insight. Bad character not onlycorrupts, it blinds. A person whose perspective hasbeen deeply twisted by selfishness or dishonesty orcowardice cannot understand the world in as perceptivea way as someone whose sensibilities are ethicallywell formed. Good character makes sustainablesuccess more likely.30 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


And good character makes you a persuasive personwhen working with others. Aristotle said that to be agreat salesperson, to be convincing with others, youneed to be a master of three things: Logos, Pathos,and Ethos – Logic and information; Passion andemotion; Character and integrity. This is the foundationfor long lasting success.(7) A CAPACITY TO ENJOY the processalong the way.The more you can enjoy the process of what you’redoing, the better the results tend to be. It’s easier toset creative goals. Confidence will come more naturally.Your concentration can seem effortless. Consistencywill not be a battle. The emotional commitmentwill flow. And issues of character will not be as difficultto manage. A capacity to enjoy the process is entwinedwith every other facilitator of success. When yourelish the journey, you’ll be surprised by the results.Bringing it TogetherThese conditions of success are all deeply connected.They constitute a unified framework of tools withwhich we can work our way toward the most fulfillingforms of achievement in our world. When you’reconsidering a new goal, use all seven conditions as atest. Can I form a clear conception of this as a goal?Can I pursue this with confidence? Ask yourselfquestions like this for each condition. If the potentialnew goal passes the test, then full speed ahead! If itdoesn’t, find a new goal!The 7 Cs aren’t magic, but they’re magnificentinner resources for outer success in the world.They will help us to make our proper mark ineverything we do. They will move us in thedirection of true success, deeply satisfying and sustainableachievement.And as a philosopher, I have just one question:Why should we ever settle for anything less? ■Tom Morris is the author of such books as True Success, The Art of Achievement,If Aristotle Ran General Motors, and If Harry Potter Ran GeneralElectric. He writes for The Huffington Post and MorrisInstitute.com, andhis most compact wisdom can be on Twitter by searching @TomVMorris.Tom Morris has become one of the most active public philosophers in theworld due to his unusual ability to bring the greatest wisdom of the pastinto the challenges we face now. His message is helping to change livesand revolutionize business practices everywhere.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 31


REORGANIZING STRUCTUREBusiness21st CenturyHow One Salvage YardReinvented the Way They Do Businesswith a Change in Perspective.ABY M I C H E L L E K E A D L E - TAY LO Rbout a year and a half ago, John and Holly Cahill andMark and Joan Brown purchased Toy Town AutoSalvage, now known as Brown’s Auto Salvage, inWinchendon, Massachusetts. The Cahills, whoalso co-own (with Tim and Carrie Cahill) Cahill’sGarage in New York, have over 20 years of experienceworking for both of the major consolidatorsin the industry.John Cahill has observed first-hand theway business has evolved in the last 20 years. With their new ventures,he was presented the opportunity to re-invent a businessthat needed a new approach in order to move forward.“I feel like there are still a lot of salvage yards today that are operating withan 80s-type mentality,” said Cahill. “We have an old joke in the salvage industrythat if a part lasts for 30 days then it’ll last forever. Yet, many yards are stillinflexible in their approach to customer service and are reluctant to give lifetimeguarantees.“If we are to revolutionize our industry, I think we have to adopt a customerservice attitude similar to L.L. Bean, the clothing line known for its quality andhigh level of customer service, or the shoe company, Zappos, who does thesame. Unfortunately, the salvage industry as a whole gets judged on the lowestcommon denominator – the few yards that operate below industry qualitystandards. Those yards give the rest of the industry a bad name.”When they purchased Toy Town Auto, they knew they needed to have afresh vision for the business. It had been operating since the 1950’s andoffered a 30-day warranty. According to Cahill, it also had inaccurate descriptionsof parts and the physical property and buildings needed maintenance.32 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


iStockphoto.com/akindoCahill says the first thing he and his team did wasask “how can we make this business better?” Theydecided to look at three major areas: the people theyemployed; the cars they purchased; and the processesthey had in place.Employee ReviewThey started with their employees and met witheach one to see if they had the ability to do the jobthat would be required of them and the desire tomove forward with the new vision they had for thenewly-named Brown’s Auto Salvage. When they purchasedthe business there were 11 employees andCahill says they intended to keep all of them whowere interested in moving forward with them. Whatthey found was that over time, all but one decided toleave because the change was so drastic.“Our vision was to offer excellent customer servicethat was proactive, where you do everything to keepthe customer happy,” said Cahill. “In order to do thatwe needed to have a mentality shift from ‘one saleand we’re done’ to a more continual customerservice that focuses on building relationships withour customers. For example, we had one employeewho left because he felt it was a waste of time to callback all of his quotes and sales from the day before.He thought the customer would call him back if heor she wanted the part and if he had already sold thepart, what was the need to call the customer back?”Cahill and team took the time to look at the characteristicsand skills they needed for each job andwrote job descriptions for each position. For example,they wanted a young employee to work the yard anda very detail-oriented and thorough person to handleinventory. They kept these attributes in mind duringthe interview process.“We really took our time with the interviewingprocess,” said Cahill. “We would spend a full day justinterviewing for a position. I feel if you spend thetime up front to make sure you are getting the rightperson, it will be worth the time you take to obtainthem. If managers feel that they can’t spare the timebecause they are too busy, then I would encouragethem to consider using a screening company to dothe interviews so they can make sure to attract the caliberof employee they need.”Cahill says he feels that their employees are specialand although their business is too small to be able tohave a dedicated trainer, they incorporate trainingon a continual basis to better equip their employees.“A lot of people struggle with having time to trainemployees because they are wearing several hats.Although we don’t have a training manager, we recognizethe importance of making sure that we keepup with training,” said Cahill. “Safety and other specialtytraining such as the storage and handling ofhybrid batteries are only some of the subjects weensure we stay current on. It’s important to have thesafest work environment possible to avoid injuriesand damage to property.”<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 33


REORGANIZING STRUCTUREReinventing 101• Buy inventory for quality not quantity.• Invest time in your employees, startingwith the hiring process. Know what youwant. Write accurate job descriptions foreach position. Use a screening companyin you don’t have time to interview applicants.• Train your employees, especially withregards to safety.• Sell deeper into the car. Sell more parts.• Provide detailed and accurate descriptionsof your parts (starting in inventory).• Make it easy for the customer to buyfrom you. Remove obstacles that wouldprevent them from buying from you.Another area they analyzedwas the option to outsourcecertain jobs. If an employeewill take longer to accomplishthe task perhaps it’s better togive the job to another companywho can do it better.“So many owners want tospend pennies to watch dimesgo by,” said Cahill. “We evaluatedthe job performance ofthe employees who were doingcertain tasks and decided that,in some cases, it made moresense to outsource jobs. Forexample, we decided to outsourceour truck repair and in doing so we improvedthe quality of the repair and saved time as well.”Cahill says that by making all of these changes, inless than one year, they have doubled their production.A New Perspective on Cars and PartsThe next area that Cahill and team took on as theytransformed Toy Town Auto Salvage into Brown’sAuto Salvage was considering the type cars they purchased.When the Browns and Cahills purchased thesalvage yard, the cars they had for inventory werewhat Cahill calls “street buys” – lower priced merchandise,cars under $1,000 dollars that left themable to compete on price alone, because the partswere so old and high-mileage that they couldn’t competeon quality.The quality of the inventory became a problem forCahill. “My input controlled my output and mybiggest mistake was to not crush everything and startfresh,” said Cahill. “I crushed about 85 percent of ourinventory because it had high mileage, some partshad been on the shelf for five years, and overall theparts were junk. We had to move from the philosophythat says, ‘you might as well leave parts on the shelfsince you bought them already and they will sell eventually’to the 21st-century mindset where cash flow isking.”Cahill says that turn of inventory makes a differencein today’s business and that instead of saving parts toeventually sell them, there are other avenues availabletoday to turn those parts into revenue. For example,besides crushing material you can also sell cores andturn those parts into cash flow.Cahill also suggests that 21st-century yards shouldconsider breaking up assemblies and selling parts asspecific parts. “With the Internet, today’s buyers aremuch more aware of the exact part they need andthey may want to buy just a knee, not the whole packagedeal of knee, axel, spindle, etc.,” said Cahill. “Byselling things like airbags, knees, and other assembliesas a group, you are limiting your audience and potentialcustomers. Customers want the specific part anddon’t want the other parts or the higher price thatcomes with the assembly.”As a result Brown’s Auto Salvage finds themselvesinventorying deeper into the car today than it didbefore. They also pay closer attention to their pricing,making sure that they attract the most money for theparts that they can’t keep in stock such as engines,transmissions, and other major components. Thenthey make sure that their prices are low and competitivefor overstocked parts such as back seats.Inventory purchasing is another way that the industryhas changed. It is important to consider this whenre-inventing your business. Cahill says that now hemay pay more and buy cars that might have 50,000miles on them rather than buying something cheaperthat has a motor with 150,000 on it. He goes forquality over quantity and he says that ten years agothe average turnover for inventory was between six to18 months. Today, turnover rates are much quicker,usually between 90 to 180 days.Rethinking How It WorksThe third area that Cahill and team consideredwhen re-inventing and shaping their business was theprocesses they had in place. They changed threemajor processes: inventory, parts description and customerservice, including the payment process. Thesechanges according to Cahill, dramatically increasedtheir credibility and customer satisfaction.“None of what we’re doing is magic,” said Cahill.“The changes we made involved a major change inmindset and may seem counterintuitive to the waymost salvage yards have done business. We haveremoved the obstacles that would prevent a customerfrom buying from us. Instead, we have developed acustomer service minded business that makes it easyfor the customer to buy from us. We have also madeit easy for a customer to have a problem fixed, shouldone arise. As a result, we have greater customer satisfaction,eliminated wasted labor, have become moreefficient and have raised our credibility enormously.”One of the first processes that the team at Brown’sAuto examined was the inventory process. Theystarted to inventory more parts giving them theopportunity to sell more parts. Now they sell a lot ofnon-interchange parts. For example, instead of justselling a door, they sell the door panel, sun visors,34 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


center consoles, master switches, and more.The second process they changed was the way theydescribed parts. Now, they take great effort to ensurethey enter all the information from the manufacturerthat they possibly can. Instead of entering minimalinformation such as left door, blue, they are careful toenter as much detail as they can. For that same door,their description would include the trim code, paintcodes, and part numbers. They also use accuratedamage codes.“Giving an accurate description for parts is essentialto increasing your potential sales,” says Cahill. “If timeis taken upfront to make sure to understand andwrite an accurate detailed description of your part,you increase the likelihood of someone buying it.Rather than describing your mirror as an interiormirror, make sure to note that it’s a GPS style interiormirror. Instantly, you’ve expanded your potentialsales audience.“We have found that our credibility with insurancecompanies, body shops, dealerships, and retailers hasgrown considerably since we have taken the time toprovide a more detailed inventory,” said Cahill. “Wehave greatly reduced the number of returns becausethe customer knows exactly what they are getting.”This has played a part in changing the customerservice process as well. Due to greater representationof the part upfront, they have reduced returns. Theyalso offer a 100% money back guarantee. Cahill saysthey continue to take away any obstacle that wouldprevent someone from buying from them.“The security blanket for customers is being able toget their money back if the part isn’t right,” saidCahill. “We do our best to ensure they get the partthey are expecting. We also have put a pre-paymentprocess in place. We don’t have customer walk-ins forparts that are not stocked on the shelf. In otherwords, if the part has to be pulled from a vehicle, werequire customers to pay before they receive the part.“This may sound counterintuitive to most yards,but we have seen that it not only enhances our customersatisfaction, it eliminates wasted labor for apart that remains unsold. Customers pay in advanceover the phone by debit or credit card and we callthem when their part is ready. Think of it as a valetservice for parts. We show the customer that we valuetheir time by saving them from waiting around at ouryard while an employee pulls the part from the vehicle.The benefit for us is we eliminate the possibilityof wasted labor for a part that may not get purchased.”■Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 35


REMOTIVATING EMPLOYEESPurposeInvesting OnTraining and Retaining Employees:Metro Auto <strong>Recyclers</strong> Thinks Differently and Yield Big Results.What makes us different? You know, there are a lotof good auto recyclers across the country andmany of them, like us, are pushing to be better.We learned you have to think differently, and forus, we focused on quality processes and qualitypeople,” explains Steve Dykstra, owner of Valparaiso,Ind. based Metro Auto <strong>Recyclers</strong>. He and CEO NeilSamahon attribute their new way of thinking to theirgrowth and recent achievements.With humble beginnings, this family-owned businesslaunched in 1988 with Metro Recycling, launchingsister company Metro Auto in 1998. Metro Auto continuesto grow, adding acreage, new buildings, agrowing staff, and additional locations in Illinois andIndiana. They recycle over 1,000 vehicles annually.Dykstra admits their focus on quality is what allowedthem to grow and achieve honors including joiningthe PRP Network, ARA’s Gold Seal Program, theIndiana Department of Environmental Management(IDEM) Clean Yard Gold Status, and most recentlycompleting the Recycling Industry OperatingStandard (RIOS) certification. Metro Auto is one ofonly seven Indiana auto yards to receive the IDEMgold status and is the first and only auto recycler toachieve the RIOS certification. Achieving these certificationswas the catalyst for many changes at Metro,including not only workflow efficiencies, but also anew focus on their employees – the quality peoplethat make it all happen.“We’re trying to be known as a trading partner thatwe ourselves would want to work with,” states Samahon.36 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Workshops have been implemented to help managers improve key skills, such as interviews and the hiring process. NorthStar360 develops andcustomizes all workshops to address challenges and opportunities that are specific to Metro.Quality ProcessesThese certifications chargedthe Metro Auto team to thinkdifferently first and foremostabout their internal processesand meeting the industry’s standardfor quality, environmental,and health & safety (QEH&S).Metro Auto worked with JimCounts of Counts Consultingto seek direct improvements totheir internal processes.Changes included quality – development of a qualitycontrol department to ensure all parts are clean, presentableand as described to the customer; environmental– planting several green space areas andlining the perimeter of the yard with trees; and,health & safety – a redesign of the delivery trucks toaccommodate a pallet jack, reorganizing parts with abar code system, relocating heavier products onground level/lower shelves, installing cranes in thedismantling section and reducing fork lift traffic.In a nutshell, all these changes contributed to amore efficient work environment, and have haddirect results on their bottom line. With fewer injuriesand 3 to 4 fewer employees on payroll because ofmore efficient workflow, the positive financial impact,Susan Riddering, vice president of NorthStar360 andSteve Dykstra, owner of Metro Auto tour the yard after acoaching session.is in the ballpark of $100,000-$200,000. Although these certificationswere consuming, it wasonly part of the puzzle.A focus on quality people wasthe next step and Metro Autoneeded help.Quality People“As a small business we fly bythe seat of our pants sometimes.We quickly recognizedthat we really have a long way to go on how we trainand retain people,” explains Dykstra. Metro Auto’sinitial interest in developing their staff was rooted ina high turnover with temporary to hire workers withsister company Metro Recycling. “We knew we neededto do something, and that’s when Susan knocked onour door.”Metro Auto teamed with Rick and Susan Ridderingof NorthStar360 Business Solutions to identify keybusiness challenges that were impeding growth –starting with the high turnover with temp to hireworkers. The team agreed employee assessmentswere the best first step.Taking an assessment is the best first step for manyreasons. Even the act of surveying your employees<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 37


REMOTIVATING EMPLOYEESA better organization of parts and developing a bar code to scan parts was one strategy to improve efficiency and safety at the Valparaiso site. JohnLeegwater, operations manager (left), Susan Riddering, vice president of NorthStar360 (middle) and Steve Dykstra, owner of Metro Auto (right) talkin the parts warehouse.can have a powerful impact, showing them that youcare about them and are willing to invest in continualtraining. For Dykstra and Samahon, the assessmentprocess helped to accomplish two things: 1. Measurecurrent employees’ strengths and areas for developmentand 2. Ensure new hires were a great fit for theposition.“Providing employees with development opportunitieswill not only decrease any skill gaps, but will alsocause a tremendous confidence boost – contributingto an increase in productivity and morale,” explainsSusan Riddering, vice president of NorthStar360.Current employees have learned about theirstrengths and what they bring to Metro Auto. Formanagers, skill gaps have been identified and theyattend concept-based workshops designed to bridgethose specific gaps. For the management team, someof those topics have included time management, thefive roles of leadership, personal productivity andmanaging change. After each seminar, managerswork with a business coach from NorthStar360 to talkabout how they have implemented those new skillsand concepts at Metro Auto.“The coaching call was like a check-up to see how Iwas doing and what I had changed or put into playsince the workshop,” said John Leegwater, operationsmanager. “Hey what are you doing about this? Noone wants to admit they’ve dropped the ball or notfollowed up on a task, so the coaching call keeps alevel of awareness alive much longer than 48 hoursafter the session.”Dykstra agrees that the coaching increases accountabilityfor what you have learned and helped identifyand define action steps to apply to daily work life. “It’sreally a key component of the learning process.”Second, NorthStar360 introduced a few improvementsto Metro Auto’s interviewing and hiringprocess. They discovered potential candidates didnot fully understand the job description and expectationsbefore accepting a position. The revised hiringprocess includes a pre-employment assessment forkey competencies.Potential job candidates now complete a briefsurvey which identifies their strengths and weaknesses– helping to better predict success in a new job. Thepre-employment assessment has become an integral38 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


part of the hiring process. When used in combinationwith the application and interview, the assessmenthelps identify candidates that are a good fit for a particularjob.“It is nice to have a tool that identifies candidateswho are a good fit, so we’re not just going on our gutfeelings,”explains Samahon. In fact, for Metro Auto,the three new hires that participated in NorthStar-360’s assessment have been very effective in theirpositions. The pre-employment assessment processhelps to minimize the risks associated with hiringwhich can be very costly.The team also created a more formal interviewprocess with a standard list of questions for all candidates.NorthStar360 created a custom training programfor Metro Auto’s managers and supervisors toestablish this more formalized process. Ridderingexplains that not only has this training given managersand interviewers a new confidence, it ensures MetroAuto is EEOC compliant during all interviews. Theresponse from interviewees has been positive as well.“We hear that we ask questions that really make youthink. It has definitely added more professionalism toour process, showing new candidates that our team isOne recent expansion at the Metro Auto Valparaiso, Ind. facility includesa new indoor dismantling building, seen above.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 39


REMOTIVATING EMPLOYEESprepared and focused,” explainsDykstra.Dykstra and Samahon said theresults for Metro Auto have beenbusiness-changing, increasing employeeproductivity, retention andmorale. Employees are happierand more fulfilled.“Our people see we’re trying todevelop them so we can grow to new levels. We careabout them, and we have created more credibility asa company,” Dykstra explains.As for the bottom line, there are direct savings fromdecreased turn-over. “We all know turnover costsmoney in searching for a candidate, training and dayto day turmoil from having a vacant position,” saidDykstra. In addition, there are savings from indirectcosts like increased productivity, retention and morale.Metro owner Dykstra and CEO Samahon are confidentthese changes and development were necessaryto take their business to the next level.“This has been a process to position ourselves forgrowth,” explains Samahon. “We couldn’t have imaginedgrowing further because we had a lot of cleaningHiring a consultant can bescary because businessesassociate it with a high cost.But it was exactly whatthis owner needed to takeMetro to the next level.up to do. Since we’ve done this,we’ve been confident enough toadd another location. That’s whywe partnered with Rick andSusan.”Dykstra admits that hiring a consultantcan be scary because businessesassociate it with a high cost.But for this family-owned business,it was exactly what was needed to take Metro to thenext level, and Dykstra assures businesses there is agreat return on investment. He recommends companiesresearch area consultants. For Metro, NorthStar-360 specializes in growing small to mid-size businesses,a perfect fit for Metro. “Rick and Susan are ourexperts,” said Dykstra, “they helped us to think differentlyand look at the results! ■NorthStar360 Business Solutions helps businesses maximize their successthrough comprehensive hiring practices and in-depth employee developmentprograms. For more information on NorthStar360, please call (219)864-1576 or visit www.northstar360.com.Metro Recycling Facility’s commitment to recycling and the environmentbegan in 1988 when it opened in Blue Island, Ill. Since then, two additionalmetal recycling facilities were opened in Indiana. For more information onMetro, please call (219) 462-3753 or visit www.metroautorecyclers.com.40 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


RECHARGING SALESCardPlaying the TechnologyMaking It Work For You.BY M I C H E L L E K E A D L E - TAY LO RYou’ve heard it all before.The automotive industry’snumber one gripe is that itis becoming very difficult toobtain quality salvage — thanksto the Internet. You’ve alsoheard that in order to expandyour business and stay competitiveas we go into the future,you’ll need to embrace the age of technologyand use it to your advantage.Whether you see technology and its constantchanges as a friend or a foe, it’s here to stay. So, youmight as well make it work to your advantage andincrease your business. That’s exactly what Tom’sForeign Auto Parts in Waterbury, Connecticut hasdone.Wednesday, May 8, 2013 will mark ten yearssince Tom’s Foreign Auto Parts began using eBayand over the years they have learned how to usethe Internet and social media sites to greatlyenhance their business. In fact, eBay has becometheir biggest outlet for used parts sales on theInternet and will continue to be so in thefuture according to Jim Eitvydas, President,Tom’s Foreign Auto Parts.“We are always looking for new ways to sellmore parts in more places,” said Eitvydas,“Our future depends on technology andInternet sales. More and more, do-it-yourselfcustomers and shops are using the Internet<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 41


RECHARGING SALESto find parts. We will make surethat we are where they look whenthey are looking.”Not one to shy away from technologyand the endless opportunitiesit offers, Eitvydas started usingeBay ten years ago. His wife, Diane,started their eBay business by sellingowners’ manuals on it. Theysold over 700 owners’ manuals inthe first year alone and realizedthey were on to something. Aftertwo years, they hired an employeeto work full-time on eBay. Thatemployee, Dan Tole, E-CommerceManager for Tom’s Foreign AutoParts, joined the team and hasbeen expanding the opportunities(along with two other employees )for e-commerce ever since.“Jimmy hired me when I was about 22 years old,”explained Tole. “I had worked on and off at Tom’sForeign Auto Parts as a teenager. My father hadknown Jimmy when they were younger and alsoworked here part-time. When Jimmy hired me I hadbeen working at a parts store, building computersand selling on eBay myself. Between Jimmy andmyself, I don’t think there has ever been a time wehave been afraid to try something new in regards tothe Internet or technology.”One of the ways that Tom’s Foreign Auto Partsmakes technology work for them is to use it to automaterepetitive tasks such as pictures, YouTubevideos, updating online inventory, modifying inventory,making price changes, and more. They use customprograms for inventory, ordering, and narratingvideos of all of their parts vehicles.“Why waste time doing tasks computers can do forus?” asked Eitvydas. “We find that by using these customprograms, it helps us to sell more parts. ““Our most used custom program is for images,”said Tole. “We are able to use wireless cameras andbar coding to take pictures and automatically uploadthem into our inventory system as well as onto multiplemarket places. We knew that having pictures ofevery part was becoming extremely important, butthe time to manually rename them and move themaround our network was a bottle neck for us. Now wemake it a point to take a minimum of three imagesof every part our staff handles. Pictures sell partsonline. It allows us to set customer expectationbefore the sale by showing them exactly what theyare getting.In order to have you ownsuccessful e-commerceWeb site you must bewilling to put effort into it.Jim Eitvydas, President, Tom’s Foreign AutoParts, left with Dan Tole, e-Commerce Manager,right.Tole says that video has alsobecome important to their onlinecustomers. They take a narratedvideo of every car they inventoryand post it to YouTube. Then, theyuse a custom program to log theYouTube embedded codes so thatthey can automatically insert theminto part listings around theInternet. According to Tole, theycurrently have over 3,000 videoson YouTube and are just weeksaway from hitting one millionvideo views.Posting videos to YouTubeevolved as their eBay businessexpanded. “As our eBay businessgrew we started to look for moreopportunities to reach our customersonline and describe our parts better,” saidTole.“Sales-wise eBay is the biggest outlet for used partsfor us and will continue to be for the foreseeablefuture,” said Eitvydas. “Amazon is the fastest growingInternet site but offers a lot of challenges for usedparts. It’s been good for us, but on a much smallerscale. Craigslist has helped us get a lot of local trafficand allows us to link directly to our Web site. It hasto be used in moderation though, to keep from gettingposts pulled or banned.“I think for anyone wanting to increase the waythey use the Internet for sales, I would encouragethem to not be afraid of trying new smaller marketplaces as you find them,” says Eitvydas “Ultimatelycreating your own e-commerce site has the best longterm benefits. Our own e-commerce Web siteTom’sForeign.com has been extremely successful.We sell exactly the same parts on that site as we sellon eBay and Amazon.“In order to have you own successful e-commerceWeb site you must be willing to put effort into it. Thisdoesn’t mean building a site with a few pages andusing a different company’s dynamic look to makeyours look interesting. The best results will be froma full-fledged e-commerce site, rich with updatedcontent. Content is the key to getting your site foundonline.”As technology changes, there are more and moreopportunities for recyclers to attract potential business.Yet, although it offers exciting and endlessopportunities, many recyclers may find that they arestill reluctant to take the time to make it really workfor them or they simply may not be sure how to max-42 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


RECHARGING SALESTIPS TO GETTING THE MOST OUT OF YOUR TECHNOLOGY• If you aren’t tech savvy, start slowly but start using technology.Don’t be afraid to ask advice and to learn from mistakes.Approach one aspect of technology at a time.• Make a conscious effort to use technology in your daily processessuch as with inventory, ordering, videos of your inventory etc.• Build your eBay business.• Start to diversify your presence on social media sites, Amazon,Craigslist, etc. The best place to start is with Facebook. Create afan page for your business and post something that would interestyour viewers daily.imize technology to increasetheir profits.The team at Tom’s ForeignAuto Parts has learned that a keyto maximizing their presence onthe Internet is diversification.They have put their business on allthe social media sites they can. Theyhave created an e-commerce Web sitethat provides fresh content and isupdated regularly. They also are oneBay, Amazon, Craigslist and any othersocial media site they can find.“You have to work social media,”said Eitvydas. “Used parts are notexciting, but you have to find ways tomake your business exciting and interestingto your followers. Give them areason to follow you. Be consistentand deliver content to your customersdaily. No online marketplace is a ‘setit and forget it’ deal. It constantlyneeds to be monitored, added to,revamped, and updated.”The Internet thrives on fresh content,suggests Eitvydas. “Having adynamic parts search will not get youtraffic, but fresh content will. You also cannot rely onjust eBay or your Web site alone. What wouldhappen if one of them was to fail? Would you be outof business? You have to look at all new marketplaces and figure out which ones you can adapt toyour business.” Another way to diversify your presenceto customers and keep providing updated and freshcontent is by producing a weekly e-mail newsletter.You might ask, how do you make your parts soundexciting? Tole admits that there really “aren’t any waysto make OEM parts exciting,” but they have devisedvarious other ways to attract potential customers. For• Give your business personality through your posts that encouragepersonal interaction with your customers. Examples of this include,funny images, questions posed to your followers, videos of the moreinteresting aspects of your business.• Jim Eitvydas recommends checking out the following links:>Internet Retailers Conference, www.irce.internetretailers.com/2013>Channel Advisor conference, www.channeladvisor.com/catalyst2013.Jim and his team have found these sites to be a wealth of informationas they continue to build their e-commerce business.In order to have you ownsuccessful e-commerceWeb site you must be willingto put effort into it.example, they try asking theirfollowers questions about theircars or about their opinions onhot news topics. They post funnypictures and videos to get people’sattention. They have foundthat videos of cars being crushed andother parts of the auto recycling operationare interesting to people andattract many viewers.“I guess the point is to not floodpeople with ads about an alternatorsale,” said Tole. “It’s important toengage and interact with your customersso that when they do needsomething your name will be ontheir mind. Make social feeds valuableto them so they keep readingand don’t ignore you.”So, for yards wanting to really startusing technology in a more effectiveway, where’s the best place to start?“The good news is that these thingscan be accomplished by any size salvageyard provided they use technologyto simplify it,” said Eitvydas. “Iwould encourage you to embrace itand don’t run from it. Start to work it into your staff’sdaily processes. For most yards, starting on eBay andgrowing from there will be the most feasible path.”According to Eitvydas, it is vital to get everyone inthe business – from the employee taking inventoryto customer service staff to the employee working inthe yard – to take ownership of your e-commercebusiness or it will not work.“There are several important parts to making youre-commerce business successful,” says Eitvydas. “First,it’s important that every employee owns it and seesthe value of your e-commerce business. We accom-44 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


RECHARGING SALESplish this by keeping the lines of communicationopen and showing our employees the benefits andresults of using e-commerce.“Another important part of e-commerce is settingcustomer expectations and delivering on what ispromised. Be transparent, offer a good warranty andmake it easy for customers to send parts back. Makesure that every customer is happy no matter what ittakes. The last thing you want is bad feedback, badreviews, or negative talk about your business onsocial media outlets. Those are things that can negativelyaffect your internet presence.”Eitvydas feels that as social media goes, the numberone place to start is on Facebook because it’s free, it’seasy and your customers are probably already using it.“I would encourage auto recyclers to create a fanpage for your business and keep it updated,” he said.“It takes no time to post a status update and by postingthings like questions for your followers, a funnyimage, news, or even a coupon, you will prompt peopleto interact with you on a more personal level.This shows that your business has a personality.Social media is a great path for growth in the future.Will your business go under for not doing it? No, butit’s free, easy, and puts you in front of customersevery day so why wouldn’t you use it?”You may say to yourself, this all sounds good but Istill have no idea how to navigate my way around allthis technology.Tole offers the following advice.“The only way to learn technology is to start usingit,” said Tole. “I would suggest starting slowly anddoing things one by one. Don’t try to take on thewhole world all at once. It’s ok to make mistakes andask others for guidance. Many sites and off the shelfsoftware offer help sections and how-to write ups.eBay, for example, makes it easy for a completeInternet novice to list items, yet still offers tools foradvanced users. This allows you to start small, learnthe system and then step into more advanced sellingwhen you are ready.“It can take as much time as the yard wants it to. Itreally depends on how far they want to go and howfast they pick it up. There are too many variables tosay it will take ‘x’ amount of time every day. At theend of the day, the sales and customer satisfactionwill reflect the time that is put into it.” ■Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.46 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


REMAKING PROFITSTread?Got SomeTurning Your Used Tire Sales into a Cash Crop.BY M I C H E L L E K E A D L E - TAY LO RSome people stumble upon their destinies, but Ron Wilbert, of Wilbert’sInc. in upstate New York, rolled into his long before he was a teenager.His father and founder of Wilbert’s Inc., Arthur Wilbert, gave him a jobthat no one wanted – to sort and organize the piles of tires at Wilbert’sback in the early seventies.“In the late seventies, Dadnever told me to stop so I just keptgoing,” said Ron Wilbert, now one of the owners ofWilbert’s Inc. “We started installing tires which led toa new tire shop for installations and storage. We alsoactively started purchasing used tires from otherrecyclers and tire dealers. By the eighties we werealso selling multiple brands of new tires as well.”At the same time that their tire business was developing,Ron also discovered a passion for wheels.Wilbert’s started refinishing steel and alloy wheelsover 25 years ago and now stock nearly 10,000 new,refinished and used wheels. This passion led Ronand his team to grow his tire and wheel business torepresent almost half of the dollar volume forWilbert’s sales.Today, Ron has taken on other responsibilities sincehis father’s passing five years ago, as Wilbert’s has nowgrown to three locations, with a recently opened U-Pull-It yard. Ron says he is proud to not only work withhis two brothers, but also to have three sons and anephew amongst their 61 employees.The hard work of Ron and the team at Wilbert’sInc. has caught the attention of fellow recyclers.“Tires have always been one of our top sellers andwe look to Wilbert’s Inc. for ideas on how toimprove our own business,” said Steve Barkwell ofGary’s U-Pull-It, Binghamton, NY. “Wilbert’s hasbeen in business for over 60 years and is wellrespected in the industry, especially when it comesto how to run an efficient and impressive tire salesbusiness.”<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 47


REMAKING PROFITSGoing hand-in-hand with selectingthe right dedicated staff for the job,is putting thorough and clear processesin place for your tire business.Early 70’s at Wilberts.Leak testing.Wilbert’s was able to achieve this reputation byconcentrating on areas such as quality control,organization and exceptional customer service.“<strong>Automotive</strong> recyclers have always had the ingredientsto be in the tire business, but many have chosenin the past to overlook it,” said Wilbert. “Withthe recent great increases in cost, tires have becomea commodity that now cannot be ignored. Howsophisticated a tire business you wish to develop is aderivative of time, talent, and space. Having the trafficthrough your store to which to market the tiresisn’t even an excuse any more as thousands of usedtires are sold every day on eBay and Craigslist.”The first most important ingredient in gettingstarted is to have the right man for the job. Thatmeans having an employee devoted to inspecting,labeling, organizing, and selling your tires. Thatemployee is also going to need a well-lit and climatecontrolledarea to set up shop. If you’re processinganywhere close to 1,000 cars a year, the employee willneed additional help, suggests Ron. Wilbert’s, whoalso sells new tires, have two full-time sales people,two installation techs and two more employees forprocessing, inspecting and labeling and that doesn’tinclude parttime help.Going hand-in-hand with selecting the right dedicatedstaff for the job, is putting thorough and clearprocesses in place for your tire business. The team atWilbert’s spent a lot of time making sure that theirprocesses for inspecting, testing, repairing and cleaningtires were detailed, accurate and meet thehighest quality standards.“The procedure I feel is the most important of allof them is the proper inspection of used tires whenremoved from vehicles for dismantling,” said Wilbert.“Before deflating tires for dismounting they shouldbe visually inspected for sidewall bulges or cuts aswell as weather cracking. These conditions are muchmore obvious when tires are inflated. Mark damagewith an ink crayon to prevent these tires being soldthus becoming a liability.“Most importantly, don’t let your tire processor dismountsellable tires that are flat or low on air.Instead inflate these tires and inspect for the sourceof air loss. The purchase of a dunk tank saves muchtime in this process. Don’t throw away money! Tireswith plugs or nails can easily be permanently repairedwith a small investment of materials and training.”Wilbert’s also internally inspects tires for damageafter dismounting to ensure they are selling a safeproduct and to reduce liability issues. Wilbert saysthey are able to place stickers on their tires that say“Inspected and Guaranteed” because their processesallow them to have confidence in their tires.Wilbert’s considers tread depth, wear pattern, popularity,and the manufacturer of the tire when determininga competitive price. They are careful to notoverprice their tires worn beyond 50% and offer areduced price for single tires. Winter tires, excludingLT, are only processed during the winter seasonwhen their value is high.“Don’t over price tires you think you’re going tomake a lot on,” said Wilbert. “For example, if you getsome current model cars with unique size tires48 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


ealize that they are going to be the hardest to sellbecause the type of customer that would own thatkind of vehicle, is not your average customer.“Keep your tires competitively priced especially ifyou are new to tire retailing. Once you have the traffic,then you can demand more for your product.”Another part of Wilbert’s attention to detail is thelabeling they do for each tire. In addition to the“Inspected and Guaranteed” stickers they place ontheir tires following inspection, they are careful tonote any blemishes on the label and the invoice.“We go to great lengths to get special labels thatcan’t be removed,” said Wilbert. “If a customer triesto pull the label to switch it for one on a cheaper tire,the label tears, alerting the retail staff. This helpsgives us extra protection against fraud.”Also vital to a thriving tire business is the quality ofstaff you employ. Wilbert’s has dedicated staff totheir tire business for 30 years. Their top parts salesmanhas spent many years selling tires. This reflectstheir belief that educated tires sales people not onlysell more tires, but keep customers coming back.Their attention to customer service also led them tooffer tire installations as part of their business.Proper equipment.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 49


REMAKING PROFITS“Be patient. It takes time to develop aniche whatever it is but you already havethe gold so just mine it. Even though it’sblack it still pays off green!”– Ron WilbertWhich one would you buy?Sales team dedicated to tires.“Half of our customers wouldn’t come to Wilbert’swithout our excellent customer service,” said Ron.“We expect to get customers that don’t know whatsize tire they need for their car. We frequentlyinspect the tires on a customer’s car as the first stepto make sure of what their needs are. Many of ourused tire customers trust us to pick the tires theyneed, as they know we are the professionals.“We probably install 95% of the used and new tireswe sell. Our return ratio is less than 1% on tiresbecause we take care of everything. Customers arebusy so they prefer a one-stop tire shop.”Wilbert’s started stocking new tires because theyfelt it made sense instead of sending their customersdown the road. If they are out of stock of the usedtires the customer needs they make sure to have thenew tires so they meet the customer’s needs.“New tire sales are an integral part of our businessnow,” said Ron. “It enhances our customer serviceallowing customers to find the tires they need here.When customers come through our door they don’tknow if they will leave with used or new tires becauseit depends on our inventory and stock; but theyknow they can depend on us to meet their needs.”And finally when thinking about your full servicetire business, it’s important to have a clean, well-litarea to store and sell your tires. Tires should beracked in an organized fashion so customers can easilyfind what they need. The area should be adjacentto your retail counter and must be maintained daily.Wilbert’s uses two tire barns that can store over1,000 tires at a time and they assist all customers withtheir purchases.When it comes to self-service facilities, Ron saysthat there are special considerations for selling tires.“Most u-pull-its have not adjusted pricing to reflectthe increases in tire cost,” said Ron. “They price byrim size with no consideration of the tread depth.Therefore, they quickly sell their high tread tires thatare under-priced to customers who many times willresell them at their real value for more profit thanthe u-pull-it was making. Also the u-pull-its are leftwith marginal tires that are overpriced that theycan’t sell.“Therefore, I developed a color-based tire pricingsystem for our u-pull-it yard. All tires are inspectedwhile the car is on the drain table. All unsafe nonsellabletires are sprayed with a bright orange line onthe sidewall. All other tires are sprayed one of threedesignated colors on the tread to represent good,better, best categories with three different price designationsassociated to the colors.”Should you decide to get into the tire business,Ron’s advice is to, “Be patient. It takes time todevelop a niche, but you already have the gold sojust mine it. Even though it’s black it still pays offgreen!”Wilbert’s has prospered over the years because ofthe importance they put on the family, employees,and the communities they serve. Wilbert’s has threelocations in upstate New York currently with 61employees and growing!Ron has also served as Past President of the NE-PRP group for the past two years and led them togreat growth. Ron is happy to answer all request forinfo at ronaldawilbert@gmail.com ■Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.50 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


SPOTLIGHT ON EXCELLENCEUnderstanding theproduct-driven natureof the automotive recyclingRhine Auto, Inc.business has been keyPurposefulto their success.BY LY N N N O V E L L IBusinesshat do you do with 40 acres of property in Sheboygan County, Wis.and an assortment of junk cars? When the township orders you toWeither move or get a salvage license, you start a salvage business.That was the inauspicious with their father and grandfather after school, onbeginning in 1958 of what today weekends, and during vacations. After graduatingis Rhine Auto, an ARA Gold Seal from high school a year apart in the early 1980’s,facility in Plymouth, Wis. Brothers Steve and Mike joined their father in the businessSteve and Mike Urner, co-owners of the business, full-time and eventually assumed joint ownershipenjoy telling the story of how their father andwhen their father retired.grandfather, Paul G. and Paul J. Urner, started the Over the years Steve and Mike transformed thebusiness on the family farm for the cost of the $15 business from retail to primarily a wholesale operation.“It was a slow progression to get to where wesalvage license. It grew from there,” Steve Urnersays, “The more cars they had sitting around the are today,” Steve Urner says. “Where we are situated,between Green Bay and Milwaukee, is a goodmore people came.”Typical of many ARA family-held companies, the crossroads. We sell to the yards in both cities.”Urner brothers grew up in the business, working Still in its original location on the former family<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 51


SPOTLIGHT ON EXCELLENCEfarm, Rhine Auto today specializes in 2000 andnewer foreign and domestic trucks and sport utilityvehicles, dismantling approximately 1,000 latemodel vehicles annually and processing 200 to 300scrap vehicles that are crushed and sold.Understanding the product-driven nature of theautomotive recycling business has been key to theUrner’s success, dating back to when their fathercollected scrap vehicles on the family farm. “Wehave always believedthat if we have a qualityproduct, customers willcome,” Steve says.Smart buying is thefoundation for RhineAuto’s commitment toa quality product. BothSteve and Mike buyvehicles online and atlive auctions, using abidding module andfollowing their buyingobjectives. “We arefocused on late modelvehicles – trucks andSUVs – and we stayaway from low-end vehicles,”Steve explains.“We are aggressive inour buying.”Starting out in thebusiness, the Urnerslearned how to buy vehiclesthe hard way – bytrial and error. In 1998,they engaged with wellknownautomotive recyclingconsultant JimCounts to upgrade andrefine their buying strategies. They have come to relyon Counts’ basic principles for “purposeful buying,”tracking their inventory carefully so they know whatthey need to buy and measuring what they buy sothey can predict future sales.Their general plan, Steve says, is to ensure theybuy enough quality product to support their salesgoals. “In the wholesale business, having a quality,saleable product in stock is the most importantthing,” he notes. In addition to independent buying,Rhine Auto also takes advantage of cooperativepurchasing as a member of QRP since 2000 andsince 2005 when the company installed thePinnacle automotive recycling management software.Efficiency in every aspect of Rhine Auto’s operationis second only to inventory in defining thecompany’s success. Although the business is situatedon 40 acres, operations are centered in fourclustered buildings that house dismantling, shippingand receiving, the warehouse and offices.A 1995 fire in the dismantling shop resulted inrelocating warehouse space and offices away fromthe dismantling area, which, Steve believes, actuallyimproved efficiency.A recently completed major reorganizationstreamlined the shipping and receiving area.Moving some racking created the space to installa waste-to-water washing system, an overhead crane,a parts prepping station, a small package wrappingarea and two additional computer stations.Reconfiguring other existing racking now allowsfor inside pallet storage near the prep area for LTLpallets. To complete the project, two loading docksfor cube vans were added. “The new flow worksreally well,” Steve notes. “Two people are able tohandle all parts prepping, wrapping, palletizingand truck loading.”The Urner’s passion for efficiency extends totheir personnel structure. They run their total operationwith three full-time dismantlers and two fulltimeparts pullers and only 10 other employees(three salespeople, three drivers, two shipping specialists,one office manager and one maintenancespecialist). They believe that a flat organizationalstructure, without supervisor or manager-level positions,is the most efficient. “We rely on our employeesa lot,” Steve explains. “Each of them is incharge of their own daily job, and they are accountablefor what they do.”Employees thrive on the responsibility this organizationalstructure gives them, he reports, and it hasresulted in very low employee turnover in the com-52 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Rhine Auto’s Principles of Success1. Focus on buying quality inventory.2. Understand your market.3. Maximize efficiency in operations.4. Keep it simple. (See No. 1, above)pany. Among the 15 full-time employees, severalhave 25 years or more of service and several othershave more than 15 years. This structure also allowsfor better control of dismantling costs, whichmeans that Rhine Auto can maintain competitivepricing on its quality parts.During their years in business, the Urners havecome to know what works for them, and theybelieve in sticking with proven business and operationalstrategies and a basically simple approach totheir business. They understand their market, buyquality inventory and expect their small team ofemployees to do their best. Although Steve andMike are constantly evaluating the latest technology,they purchase new software, hardware or equipmentonly when they are convinced it will improveefficiency.“We keep things simple, we don’t go into debt,and we watch our overhead pretty carefully,” Stevesays. “That may be why we don’t run with the latesttechnology. Having a quality product is always moreimportant.”That’s not to say the Urner brothers are out oftouch. They stay up on what’s happening in theauto recycling industry through membership inARA and Concerned Auto <strong>Recyclers</strong> of Wisconsin(CARS), their state association. ■Lynn Novelli is a freelance writer based in Ohio.<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 53


ARA SCHOLARSHIPSARA ScholarshipAcademic Year 2012-2013The ARA Scholarship Foundation, Inc.is a non-profit organization whosepurpose is to promote educationthrough the awarding of scholarships.Monies are available to ARAmembers’ employee’s children forpost-high school educational pursuits.These scholarships are funded through contributionsfrom people like you, who care about the future ofour children, as well as money raised at events.Each year, many generous contributors help theFoundation achieve its goals. The funds help morestudents achieve their dream – gaining a collegeeducation. We appreciate all of you who generouslycontributed to this effort.Now, how can you help? Why not send a donationtoday? You can even sponsor a named scholarship!Those wanting to make a donation of $1,000 at onetime may name a scholarship for one year. For$10,000 a permanent scholarship may be named.A donor may name such scholarships in honor ormemory of anyone they wish. Contributions aretax-deductible and may be made by cash, check,MasterCard, Visa, or American Express.The deadline to apply for a scholarship forthe next academic year is drawing near. Eligibleapplicants, who must be a child of an employeeof a direct ARA member company, need to completeand submit a scholarship application by <strong>March</strong> 15,2013. The scholarships are awarded based onscholastic achievement.Download an application from the ARA Web site atwww.a-r-a.org or you contact Kelly Badillo directly at(571) 208-0428 or kelly@a-r-a.org to receive anapplication by mail or e-mail.DONALD ROUSE HONORIALSCHOLARSHIPAmy Anema, Huntington University,Huntington, INMember: LKQ Corporation, Chicago, ILParent: Kenneth AnemaHARRY M. WELLER HONORIALSCHOLARSHIPBrad Bartels, Grand ValleyState University, Allendale, MIMember: LKQ Veneklasen Auto Parts,Holland, MIParent: Brian BartelsKATIE & ALEX LIEBERMAN FAMILYMEMORIAL SCHOLARSHIPAmber Bovenmyer, University ofWisconsin - Madison, Madison, WIMember: LKQ Star Auto Parts,Janesville, WIParent: Amy BovenmyerSANDY ANDERSEN MEMORIALSCHOLARSHIPCaleb Bowman, University ofSouth Carolina, Columbia, SCMember: LKQ A&R Auto Parts,Duncan, SCParent: Joe BowmanCLAUDE A. MILLER JR. MEMORIALSCHOLARSHIPCasey Carpenter, Universityof Missouri, Columbia, MOMember: LKQ Mid-AmericaAuto Parts, Topeka, KSParent: Kevin CarpenterDONALD E. & BERNICE L. BEAGELLMEMORIAL SCHOLARSHIPHannah Dahlgren, Endicott College,Beverly, MAMember: Jerry Brown's Auto Parts,Queensbury, NYParent: Julia DahlgrenNEW YORK ASSOC. OF AUTODISMANTLERS SCHOLARSHIPHarley Dissinger, Wayne CommunityCollege, Goldsboro, NCMember: Wayne Auto Salvage,Goldsboro, NCParent: Greg DissingerSOL & LIN TODER HONORIALSCHOLARSHIPNicole Dutton, Western New EnglandUniversity, Springfield, MAMember: Sylvia's Auto Parts, Inc.,South Dartmouth, MAParent: Sharon DuttonLKQ CORP. SCHOLARSHIPDaniel Eckel, University ofIllinois, Champaign, ILMember: LKQ Corporation, Chicago, ILParent: Stephen EckelKENNY HUBBARD HONORIALSCHOLARSHIPSarah Eich, Dakota StateUniversity, Madison, SDMember: Vander Haags, Inc.,Souix Falls, SDParent: Jerry SchroederREGION IV ARIZONA & NEW MEXICOSCHOLARSHIPJoseph Fenoglio, Kansas StateUniversity, Manhattan, KSMember: LKQ Colorado, Denver, COParent: Shawn FenoglioHARRY RUBIN MEMORIALSCHOLARSHIPRyan Freeman, University ofDayton, Dayton, OHMember: LKQ Triplett ASAP,Akron, OHParent: Gary FreemanJAN SORENSON MEMORIALSCHOLARSHIPDanielle Gaw, Columbia College,Columbia, MOMember: J.C. Auto & Truck Parts,Monroe City, MOParent: Brian Dean54 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Foundation RecipientsBO WROTEN HONORIALSCHOLARSHIPTimothy Griffith, University ofCentral Florida, Orlando, FLMember: LKQ Greenleaf - Lake City,Lake City, FLParent: James GriffithMARK T. SPEARS HONORIALSCHOLARSHIPTravis Hankamp, Santa Fe College,Gainesville, FLMember: LKQ Greenleaf - Lake City,Lake City, FLParent: John HankampELVIS MUNTZ MEMORIALSCHOLARSHIPAustin Harrell, University of ArkansasCommunity College, Morrilton, ARMember: LKQ Preferred Auto Parts,Conway, ARParent: Michael HarrellJOHN VANDER HAAG HONORIALSCHOLARSHIPAshlyn Hendrix, Rocky Mtn.College of Art & Design, Denver, COMember: J.C. Auto & Truck Parts,Monroe City, MOParent: Keith HendrixBILL WEAVER HONORIALSCHOLARSHIPMichael Henry, Lynchburg College,Lynchburg, VAMember: All Foreign Used Auto Parts,Fredericksburg, VAParent: Gary HenryGERALD C. SHEFTEL MEMORIALSCHOLARSHIPEmily Heuver, University of Maryland,College Park, MDMember: LKQ Potomac German Auto,Frederick, MDParent: Marcel HeuverVIRGINIA WHELAN MEMORIALSCHOLARSHIPTeresa Heuver, University of Maryland,College Park, MDMember: LKQ Potomac German Auto,Frederick, MDParent: Marcel HeuverSKIP WELLER HONORIALSCHOLARSHIPQuinn Huver, Alma College, Alma, MIMember: Weller Auto Parts,Grand Rapids, MIParent: Anthony HuverRICHARD J. CASSIDY MEMORIALSCHOLARSHIPCassandra Johnson,Syracuse University, Syracuse, NYMember: Erie Volvo, Inc.,Whitesboro, NYParent: Jack JohnsonASHLEY GEIGER MEMORIALSCHOLARSHIPJessica Johnson, Eastern IllinoisUniversity, Charleston, IlMember: Mack’s Auto Recycling,Urbana, IlParent: Sherri JohnsonJOHN ANSPACH MEMORIALSCHOLARSHIPLaura Jones, Academy of ArtUniversity, San Francisco, CAMember: Don's <strong>Automotive</strong> Mall, Inc.,Binghamton, NYParent: Phillip JonesNAN TODER MEMORIALSCHOLARSHIPNikole Komand, Alvernia University,Reading, PAMember: Chuck’s Auto Salvage, Inc.,Douglasville, PAParent: James KomandFAY ORCUTT MEMORIALSCHOLARSHIPHolly Kulm, University of Kansas,Lawrence, KSMember: LKQ Mid-America,Topeka, KSParent: Kevin KulmCAROL PHELPS MEMORIALSCHOLARSHIPAshley LaFrance, Eastern WashingtonUniversity, Cheney, WAMember: Spalding Auto Parts,Spokane, WAParent: Glen LaFranceEDYTH CLELAND MEMORIALSCHOLARSHIPLisa Lam, George Brown College,Toronto, ON CanadaMember: Standard Auto Wreckers,Toronto, ON CanadaParent: Amanda LamSOUTHERN ONTARIO AUTORECYCLERS ASSOCIATION (SOAR)Victoria Lam, University of Waterloo,Waterloo, ON CanadaMember: Standard Auto Wreckers,Toronto, ON CanadaParent: Amanda LamRUBY GRIGGERS MEMORIALSCHOLARSHIPCandace Leegwater, Purdue University,West Lafayette, INMember: Metro Auto Parts &Wreckers, Valparaiso, INParent: John LeegwaterJOSEPH ALTFATER MEMORIALSCHOLARSHIPMarisa Legg, Wayne CommunityCollege, Goldsboro, NCMember: Wayne Auto Salvage,Goldsboro, NCParent: Ronald JansenDON & CAROL PHELPS HONORIALSCHOLARSHIPHarlen McKennett, North IdahoCollege, Coeur d'Alene, IDMember: Spalding Auto Parts,Spokane, WAParent: Patrick McKennettEZ CRUSHER SCHOLARSHIPTaylor Mehr, University of Minnesota,Minneapolis, MNMember: Pam's Auto, Inc.,St. Cloud, MNParent: Michelle MehrSTUART SPITZ HONORIALSCHOLARSHIPSamantha Miller, Anna Maria College,Paxton, MAMember: LKQ Route 16 Used AutoParts, Webster, MAParent: Ronnie MillerSUSAN WEAVER HONORIALSCHOLARSHIPVictoria Morrone, Georgia SouthernUniversity, Statesboro, GAMember: Weaver <strong>Automotive</strong>,Carnesville, GAParent: Joseph MorroneKEN VONHOF MEMORIALSCHOLARSHIPBrittany Nampel, University ofWisconsin-Platteville, Platteville, WIMember: LKQ Smart Parts, Inc.,Hustisford, WIParent: Russell NampelNORMAN DULANEY MEMORIALSCHOLARSHIPMariah Odom, University of SouthCarolina - Upstate, Spartanburg, SCMember: LKQ A&R Auto Parts,Duncan, SCParent: Michael OdomDICK & DOROTHY MERRELLHONORIAL SCHOLARSHIPSpencer Pirnik, Baylor University,Waco, TXMember: P & C Auto Wrecking,Milpitas, CAParent: Greg PirnikLINDA PITMAN HONORIALSCHOLARSHIPJennifer Rasco, Texas Tech UniversityHealth Science Center, Lubbock, TXMember: B & R Auto Parts,Lubbock, TXParent: Terry RascoNORMAN DULANEY MEMORIALSCHOLARSHIPTiffany Rasco, Texas Tech University,Lubbock, TXMember: B & R Auto Parts,Lubbock, TXParent: Terry RascoCAR-PART.COM SCHOLARSHIPValerie Rasicci, Ohio State University,Columbus, OHMember: LKQ Triplett ASAP,Akron, OHParent: Justine Rasicci<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 55


ARA SCHOLARSHIPSMARY BUESSING & ROSE KELLYMEMORIAL SCHOLARSHIPGeoffrey Riggs, Jr, Arizona StateUniversity, Tempe, AZMember: LKQ All Models Corporation,Phoenix, AZParent: Geoffrey RiggsDAVID AUTRY MEMORIALSCHOLARSHIPCody Steed, University ofWisconsin-Whitewater, Whitewater, WIMember: LKQ Star Auto Parts,Janesville, WIParent: Tom SteedCONTINUING EDUCATIONSCHOLARSHIPCaleb Swinson, Appalachian StateUniversity, Boone, NCMember: Foil’s <strong>Automotive</strong> Recycling,Harrisburg, NCParent: Timothy SwinsonFRANK NICASTRI MEMORIALSCHOLARSHIPAlanna Ticknor, Nipissing University,North Bay, ON CanadaMember: Standard Auto Wreckers,Toronto, ON CanadaParent: Ian TicknorBRANDY MASON MEMORIALSCHOLARSHIPMeredith Rudasill, University SouthCarolina-Upstate, Spartanburg, SCMember: LKQ A&R Auto Parts,Duncan, SCParent: Tamela RudasillSTEVE WATERBURY MEMORIALSCHOLARSHIPRenee Stone, University ofCentral Missouri, Warrensburg, MOMember: J.C. Auto & Truck Parts,Monroe City, MOParent: Ricky StoneMARK T. SPEARS HONORIALSCHOLARSHIPAmber Swogger, St. Louis Collegeof Pharmacy, St. Louis, MOMember: LKQ Metro #560,Caseyville, ILParent: Malcolm SwoggerDON COWELL MEMORIALSCHOLARSHIPAlyssa Venditto, Syracuse University,Syracuse, NYMember: Saw Mill Auto Wreckers,Yonkers, NYParent: Michael VendittoWANDA LINDEMAN MEMORIALSCHOLARSHIPVictoria Shockey, LoneStarCommunity College, Conroe, TXMember: LKQ Auto Parts of SouthTexas, Houston, TXParent: Jeffrey ShockeyCONTINUING EDUCATIONSCHOLARSHIPShaina Streeter, Aquinas College,Grand Rapids, MIMember: East Bay Auto Parts,Interlochen, MIParent: Kim StreeterTERRY GRAY HONORIALSCHOLARSHIPAlyssa Taylor, University ofCentral Missouri, Warrensburg, MOMember: County Line Auto Parts,Kingsville, MOParent: Gary TaylorAL-JON SCHOLARSHIPStephanie Venditto, SyracuseUniversity, Syracuse, NYMember: Saw Mill Auto Wreckers,Yonkers, NYParent: Michael Venditto56 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


CONTINUING EDUCATIONSCHOLARSHIPLori Waters, University ofSouth Carolina, Columbia, SCMember: Blue and Gold Auto Storage,Goose Creek, SCParent: Barbara WatersCONTINUING EDUCATIONSCHOLARSHIPDaniel Weaver, University ofMaryland, Baltimore, MDMember: Chaz’s Used Auto Parts& Towing, Toneytown, MDParent: Sharon WeaverG.M. VENEKLASEN MEMORIALSCHOLARSHIPExcene Wolfgeher, Northwest MissouriState University, Maryville, MOMember: County Line Auto Parts,Kingsville, MOParent: Sheila HammondM A K E A D I F F E R E N C E !SEND YOUR CONTRIBUTION TO THE ARA SCHOLARSHIP FUNDMail to: ARA Scholarship Foundation, 9113 Church Street, Manassas, VA 20110-5456.Donations are accepted in the form of check, MasterCard, Visa, or American Express.Name:__________________________________________________________________Address: ________________________________________________________________Address: ________________________________________________________________Amount of Donation: ______________________________________________________Check one: ❏ Check ❏ MasterCard ❏ Visa ❏ American ExpressName on Card: ____________________________________________________________Credit Card #: ____________________________________________________________Expiration Date:____________________Card Security Code:____________________<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 57


International Auto RecyclingReports from Around the WorldTime to ThinkBy Andy LathamTick! Another second gone, one thatyou will never get back. We have86,400 seconds in each day, on averagewe will be sleeping for 28,800 seconds sothere are 57,600 seconds available for usto use. Please allow me to take around120 seconds of your daily allowance.One of the best pieces of advice Ireceived when changing jobs many yearsago was “take time to think and writeyour ideas in pencil, because you can rubout those ideas that were no good.”Twenty-two years later, this is even morerelevant in the current business climatewe face.I mentioned this idea of thinking andwriting ideas to one customer a fewmonths ago, he immediately came backto me and said, “I haven’t got the time todo that, I’m too busy.”Years ago, I regularly attended eveningmeetings for local Motor Traders andnoticed a fellow regular attendee hadmissed a few meetings. He had been in aserious car accident and spent over sixweeks in hospital before recuperating athome for another three months. When Isaw him again he was a changed man –yes the accident had affected his mobility,but more importantly it had changed thecourse of his company. For the first timein nearly ten years, he had time to think.As a result he now takes every Tuesdaymorning away from the office to sit andthink, and the company has grown, diversified,and remains very profitable twentyyears later.While a car accident is an extreme catalystfor time away from a business, anyonereading this shouldn’t wait for thattype of incident to get started. Yet, Irecently spent two weeks at home with abad back and plenty of thinking time.Technology helps; the iPad is easy to usewhen you are laid flat on your back, andyou don’t even need a pencil and eraser.I suggest you set aside a regular timeeach week away from the day-to-day activitiesof the business, and remove yourselffrom the office so you won’t be temptedto get involved in anything else. Switchoff your phone as well.Once you get started, many strugglewith how to fill their thinking time, especiallyif the idea is new to them. Thereare no hard or fast rules to this, it is morea case of what works for the individual.Personally, I like to start with this question:“Why am I in business, what am Idoing now and what do I want to bedoing in three years time?”This can then help to drive thinkinginto different areas such as:• Sales – Weekly or monthly, could theybe better, how can we sell more?• Costs – Weekly, monthly or annually,are there areas to save money?• Staff – Do I have the right number ofemployees, the right type of peoplein the correct roles, and are theydoing the best for my company ordepartment?• Customers – What can we do to attractmore customers, give better service,and make them buy from us ratherthan the guy down the road or onthe Internet?• Business – Don’t be afraid to questionthe viability of the business. Does itwork as it is or would it be better tocompletely change the focus of thecompany, relocate, or even sell itbecause the land is worth more thanthe company can return to you.This will take a few weeks or longerbefore there is a good vision for yourcompany and its future. The hardest partof thinking is implementing the changesyou discover you want to make.I will talk about change managementin another issue, but this is where yourthinking time comes into its own.Remember that overall, people do notlike change. Despite assurances thatchange is welcomed, deep down therewill be anxiety, stress, worry, and muchmore, and this will be reflected by resistanceto the new ideas, reluctance to makethe changes requested, and a tendency torevert to old ways of doing things. A regularself-directed “time-out” is importantto enable you to reflect on progress,remind yourself why the changes are necessary,and how to continue with thechanges required to improve your businessand succeed in that vision.The truth is this, without regular thinkingtime, there may not be a business tothink about in three-years’ time! ■Andy Latham is Compliance Manager for Bluecycle in theU.K. and Europe.58 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Certified NewsApproved Gold Seal ParticipantsFacility City State CountryA & P Auto Parts, Inc. Cicero NYA-1 Auto <strong>Recyclers</strong> Rapid City SDAAA Auto Salvage, Inc. Rosemount MNABC Auto Parts & Sales, Inc. Riverdale ILAlbuquerque Foreign Auto Parts Albuquerque NMAlgar, Inc. dba Grade A Auto Parts Louisville KYAll Auto Parts Co. Fontana CAAll Foreign & Domestic Used Auto Parts, Inc. Columbus OHAl's Auto Parts, Inc. Trevose PAAmerican and Import Auto Parts Sterling Heights MIAmerican Auto Recycling Gilbert AZ<strong>Automotive</strong> Parts Solutions Rockville MNB & B Auto Parts & Salvage, Inc. Oklahoma City OKB & B Auto Salvage, Inc. Rapid City SDB & R Auto Wrecking Corvallis ORB Auto Parts East St. Louis ILBadger Motors Wisconsin Rapids WIBaird's Auto Parts, Inc. Fairdale KYBay Auto Parts Green Bay WIBessler Auto Parts Wilder KYBionic Auto Parts & Sales, Inc. Chicago ILBishop's Used Auto Parts, Inc. Middletown CTBlenkhorn's Auto <strong>Recyclers</strong>, Ltd. Brookside NS CANBow Auto Salvage, Inc. Bow NHBrothers Auto Salvage Yard, Inc. Indianapolis INBrown's Auto Salvage Bomoseen VTButler Auto Recycling, Inc. Pensacola FLBW Auto Dismantlers, Inc. Roseville CAC & H Salvage Corp. Campbell Hall NYCalumet Auto Salvage, Inc. Milwaukee WICarcone's Auto Recycling Aurora ON CANCentral Auto Recycling, Inc. Syracuse NYCentre De Recyclage Universel (1981) Ltee. Val D'Or QC CANChuck's Auto Salvage, Inc. Douglassville PACocoa Auto Salvage, Inc. Cocoa FLColumbia Auto Parts W. Columbia SCCounty Line Auto Parts Kingsville MOCousineau Auto Parts, Inc. Weston WID. A. Auto Parts, Ltd. Dumfries, Scotland Scotland GBRDecatur Auto Parts, Inc. Decatur ILDenton County Auto Salvage Denton TXDiamond Auto Parts Fond Du Lac WIDon's <strong>Automotive</strong> Mall, Inc. Binghamton NYEiss Brothers Auto Parts, Inc. Watertown NYElmer's Auto, Inc. Fountain City WIErie Vo-Vo, Inc. Whitesboro NYForeign Auto Salvage Ft. Wright KYFox Auto Parts, Inc. Belleville MIG & R Auto Parts, Inc. Oklahoma City OKGoyette's, Inc. New Bedford MAGrimes Truck & Auto Parts, LLC Grand Prairie TXH & H Auto Parts & Salvage, Inc. Sussex WIHickman Motors, Inc. Hickman KYHighway 54 Salvage, Inc. Trenton TNJ & R Auto <strong>Recyclers</strong>, Inc. Cedar Springs MIJ.C. Auto & Truck Parts Monroe City MOJantz's Yard 4 <strong>Automotive</strong>, Inc. Kenosha WIJerry Brown Auto Parts Center, Ltd. Queensbury NYJerry Carney & Sons, Inc. Ames IAJohn's Auto Parts Blaine MNJunior Sinn Auto Parts, LLC Cape Girardeau MOKadinger's II Barron WIKadinger's, Inc. Downing WIKadinger's, Inc. Cadott WIKelly Auto Parts Faribault MNKirchhayn Auto Salvage, Inc. Cedarburg WILacy Auto Parts, Inc. Charles City VALKQ - Lecavalier Ste-Sophie Ste.-Sophie QC CANFacility City State CountryLKQ Advanced Auto Recycling Cumberland RILKQ Auto Parts of Central Texas New Braunfels TXLKQ Auto Parts of North Texas, LP Hutchins TXLKQ Auto Parts of South Texas Houston TXLKQ Four States Joplin MOLKQ Midwest Auto Parts Omaha NELKQ of Michigan, Inc. Wayne MILKQ of Nevada, Inc. North Las Vegas NVLKQ of New Mexico Albuquerque NMLKQ of Southern California Santa Fe Springs CALKQ Pick Your Part/Car World Candia NHLKQ Potomac German Auto Frederick MDLKQ Preferred Conway ARLKQ Smart Parts, Inc. Hustisford WILKQ Star Auto Parts, Inc. Janesville WILKQ Triplett ASAP, Inc. Akron OHLKQ Viking Auto Salvage Northfield MNLKQ West Michigan Holland MILogel's Auto Parts Kitchener ON CANM & M Auto Parts, Inc. Stafford VAMetro Auto <strong>Recyclers</strong> Valparaiso INMidway Auto Parts, Inc. Kansas City MOMiller's Auto Recycling (1992), Ltd. Fort Erie ON CANMitchells Auto Parts dba Chuck & Eddies Used Auto Parts Plantsville CTMorris Rose Auto Parts, Inc. Kalamazoo MIMorrisons Auto, Inc. Edgerton WIMott Auto, Inc. Lebanon MONordstrom's <strong>Automotive</strong>, Inc. Garretson SDNorthwest Auto Parts Anchorage AKOlston's Auto <strong>Recyclers</strong> Lincoln NEPam's Auto, Inc. St. Cloud MNParts Unlimited, Inc. Pearland TXPeacock Auto Salvage, Inc. Macon GAPete's Auto & Truck Parts, Inc. Jenison MIRemington Auto Salvage, Inc. Eau Claire WIRhine Auto, Inc. Plymouth WIRhodes Auto S/S/S, Inc. Streator ILRidge Road Auto Parts Cleveland OHRiteway Auto Parts, Inc. Phoenix AZRobertson's Auto Salvage, Inc. Wareham MARockford Auto Parts, Inc. Rockford ILSandhill Auto Salvage, LLC Tama IASchram Auto Parts Waterford MISharp Auto Parts, LLC Stillwater MNShroyer's Auto Parts Lansing MISnyder's Recycled Auto and Truck Parts Holland TXSonshine Auto Parts Cumberland ON CANSpalding Auto Parts, Inc. Spokane WASpeedway Auto, Ltd. Joliet ILSt. James Auto & Truck Parts, LLC St. James MOStadium Auto & Truck Parts, Inc. Denver COStafford's, Inc. Montgomery ILStandard Auto Wreckers Toronto ON CANStoystown Auto Wreckers Stoystown PAStricker Brothers, Inc. Batavia OHTolpa's Auto Parts Remsen NYTom's Foreign Auto Parts Waterbury CTToomer Enterprises, LLC dba Doggett Auto Parts Bryan TXTrails End Auto and Truck Salvage, Inc. Des Moines IAWalt's Auto, Inc. Springfield OHWaterloo Auto Parts, Inc. Waterloo IAWayne Auto Salvage, Inc. Goldsboro NCWeller Auto Parts, Inc. Grand Rapids MIWest Side Auto Parts, Inc. Laurel DEWilbert's, Inc. Webster NYWoodfin Honda / Pick and Save Midlothian VAYancey Auto Salvage Perry MOY-Yard Auto & Truck, Inc. Effingham IL<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 59


Certified NewsApproved CAR and Gold Seal ParticipantsCAR Facility GS Company Name City State CountryY 43 Auto Salvage N A & C Auto Parts & Wrecking Co. Cleveland Joplin MO OHA & A Auto and Truck Parts, Inc Topeka KSA & A Auto and Truck Parts, Inc. (North) Topeka KSA & C Auto Parts & Wrecking Co. Cleveland OHA & L Auto <strong>Recyclers</strong>, Inc. Comber ON CANA & T Auto Parts, Inc. Hyde Park NYAAAACO Auto Parts, Inc. Lorton VAAADCO Auto Parts Brampton ON CANAadlen Bros Auto Wrecking Sun Valley CAAce Auto <strong>Recyclers</strong>, Inc. Iowa City IAAction Auto Parts, Inc. Marshalltown IAAll Car & Truck Recycling Anderson CAAll Foreign Used Auto Parts, Inc. Fredericksburg VAAlliance Auto Parts Woodside NYAllwest Auto Parts, Inc. Edmonton AB CANAlvin's <strong>Automotive</strong> Recycling Oakland CAAmerican Auto Parts Omaha NEArnprior and Ottawa Auto Parts Arnprior ON CANAuto Parts City, Inc. Gurnee ILB & B Towing & Auto Recycling Englishtown NJB & M Cars & Salvage Sulphur Springs TXB.O.S. Auto Parts Windsor ON CANBauer's Auto Wrecking Fresno CABell City Auto Center, Inc. Brantford ON CANBill's Auto Parts, Inc. Cumberland RIBill's Used Parts, Inc. Christianburg VABlack Gold Import Auto Parts Nisku AB CANBorges Foreign Auto Parts, Inc. Dighton MABowie Used Auto Parts, Inc. Bowie MDBrandywine Auto Parts, Inc. Brandywine MDBrandywine Truck Parts Brandywine MDBrandywine Two, Inc. Brandywine MDBrooks Auto Sales, Inc. Oilville VABruce Auto Parts, Inc. Mechanicsville VACambridge Auto Parts and Wreckers Company, Ltd. Cambridge ON CANCamp Auto Salvage Barberton OHCanadian Auto Recycling Mount Pearl NF CANCentral Small Car Salvage Brandywine MDCentral Truxx North Bay ON CANClayton Auto Parts & Wrecking, Inc. Clayton OHColorado Auto & Parts, Inc. Englewood COCompact Auto Parts Brandywine MDCookstown Auto Centre, Ltd. Cookstown ON CANCosmos Ocean County Recycled Auto Parts Bayville NJCosner Brothers Auto Parts, Inc. Troy VACounselman <strong>Automotive</strong> Recycling, LLC Mobile ALCousineau Auto, Inc. Antigo WICovey's Auto <strong>Recyclers</strong>, Ltd. Blandford NS CANDanny's Auto Salvage, Inc. Tulsa OKDenison Auto Parts, Inc. Cleveland OHD-N-J Auto Parts Owensboro KYDom's Auto Parts Co., Ltd. Courtice ON CANDon Scharf <strong>Automotive</strong>, Inc. Eagle River WIDoug's Auto <strong>Recyclers</strong>, Inc. Coldwater MIDulaney Auto and Truck Parts of Amarillo, Inc. Amarillo TXDuval Auto Parts Forest VAEast Bay Auto Parts, Inc. Interlochen MIEconomy Auto Parts Tulsa OKEden Used Auto Parts, Inc. Eden MDEd's Auto Salvage, Ltd. Westlock AB CANElgin Super Auto Parts and Sales, Inc. Elgin ILFireside's U-Pull It Auto Parts Sandusky OHFive J's Auto Parts, Inc. Albuquerque NMForeign Car Parts, Inc. Upper Marlboro MDGary's U-Pull-It, Inc. Binghamton NYGeiger Truck Parts, Inc. Watseka ILGlenn's Auto & Truck Parts Houston TXGrassy Auto Parts, Inc. West Liberty KYGreen Point Auto Parts, Inc. Brewer MEHarry's Auto Wrecking Grande Prairie AB CANHiggins Auto Parts Bakersfield CAHillsboro Auto Wrecking Hillsboro ORFacility City State CountryHilltop Auto Wreckers, Ltd. Richmond Hill ON CANHi-way Auto Parts Tyler TXHi-Way Auto, Inc. Brownwood TXHorsehead's <strong>Automotive</strong> Recycling Elmira NYI-55 Auto Salvage Channahon ILJ & J Auto Wrecking, Inc. Marshallville OHJeff Smid Auto, Inc. Davenport IAJerry's Auto Salvage, Inc. Big Lake MNKeiffer Auto <strong>Recyclers</strong> Canton OHKenny U-Pull Laval QC CANKnox Auto Parts & Rebuildable Wrecks Knoxville TNLeesville Auto Wreckers, Inc. Rahway NJLems Auto <strong>Recyclers</strong>, Inc. Doon IALentini Auto Salvage, Inc. Ringoes NJLewisville Motor Company, Inc. Winston-Salem NCLinder's, Inc. Worcester MALKQ - Barber's Auto Sales Ardmore ALLKQ 250 Auto, Inc. Harrisville OHLKQ A & R Auto Parts, Inc. Duncan SCLKQ A Reliable U Pull It South Blue Island ILLKQ Arizona (aka: LKQ All Models Corp.) Phoenix AZLKQ Atlanta, LP Jenkinsburg GALKQ Barger Auto Parts Nampa Nampa IDLKQ Birmingham, Inc. Traffon ALLKQ Brad's Auto & Truck Parts, Inc. Redmond ORLKQ Broadway Auto Parts, Inc. Stuyvesant NYLKQ Copher Self Service Auto Parts - Bradenton, Inc. Bradenton FLLKQ Copher Self Service Auto Parts - Clearwater, Inc. Clearwater FLLKQ Copher Self Service Auto Parts - St. Petersburg, Inc. St. Petersburg FLLKQ Copher Self Service Auto Parts - Tampa, Inc. Tampa FLLKQ Crystal River, Inc. Crystal River FLLKQ Dominion Auto Recycling, Inc. Stoney Creek ON CANLKQ Foster Auto Parts of Salem Salem ORLKQ Foster Auto Parts, Inc. Portland ORLKQ Gorham Auto Parts Corp. Gorham MELKQ GreenLeaf - Dallas Dallas TXLKQ GreenLeaf - Fort Worth Haltom City TXLKQ GreenLeaf - Kennedale Kennedale TXLKQ GreenLeaf - Seguin Seguin TXLKQ Hunts Point Auto Parts Corp. Bronx NYLKQ M. Robert, Inc. Sainte-Madeleine QC CANLKQ Melbourne Melbourne FLLKQ Mid-America Auto Parts, Inc. Topeka KSLKQ Minnesota, Inc. Albert Lea MNLKQ Northern California (Redding) Redding CALKQ of Central California Bakersfield CALKQ of Ft. Myers Ft. Myers FLLKQ of Indiana, Inc. Plainfield INLKQ of Northwest Arkansas dba LKQ Mid-America Fayetteville ARLKQ of Tennessee Manchester TNLKQ Penn-Mar, Inc. York Haven PALKQ Pick Your Part Anaheim Anaheim CALKQ Pick Your Part Bakersfield Bakersfield CALKQ Pick Your Part Chula Vista Chula Vista CALKQ Pick Your Part Gainesville Gainesville FLLKQ Pick Your Part Help Your Self Wilmington CALKQ Pick Your Part Stanton Stanton CALKQ Pick Your Part Sun Valley Sun Valley CALKQ Pick Your Part Wilmington Wilmington CALKQ Pintendre Autos, Inc. Pintendre QC CANLKQ Potomac German Orlando FLLKQ Pull n Save Auto Parts of Aurora, LLC Aurora COLKQ Route 16 Used Auto Parts Webster MALKQ Salisbury, Inc. Salisbury NCLKQ Savannah, Inc. Savannah GALKQ Self Service Auto Parts - Holland Holland MILKQ Self Service Auto Parts - Kalamazoo, Inc. Kalamazoo MILKQ Self Service Daytona Daytona Beach FLLKQ Self Service Memphis Memphis TNLKQ Utah Springville UTManuel's Auto Wrecking Merced CAMarco Auto Recycling, Inc. Red Wing MN60 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


Facility City State CountryMaritime Auto Salvage, Ltd. Truro NS CANMarshall Auto Wreckers, Ltd. Lethbridge AB CANMassey's Auto Parts, Inc. Millington TNMcDill Auto Wrecking, Inc. Stevens Point WIMetro Auto Salvage, Inc. Lakeville MNMid Island Auto Wreckers, Inc. Deer Park NYMiddleton Auto Parts Fraser MIMilliron Auto Parts, Inc. Mansfield OHMisgen Auto Parts, Inc. Ellendale MNMr. R's Auto Salvage Buffalo WYNewton Auto Salvage, Inc. Covington GANicklin Auto Parts and <strong>Recyclers</strong> Guelph ON CANNiks Auto Parts, Inc. Neenah WINissenbaum's Auto Parts, Inc. Somerville MANorth Verde Auto Salvage Ontario ORNovak Auto Parts, Inc. New Brighton PAOle South Auto Salvage, Inc. Lake Placid FLP & C Auto Wrecking, Inc. Milpitas CAPacific Auto Salvage, Inc. American Canyon CAParkway Auto <strong>Recyclers</strong> Kitchener ON CANPat's Auto Salvage Waterloo IAPick-n-Pull Auto Dismantlers - Calgary Calgary AB CANPick-n-Pull Auto Dismantlers - Edmonton Edmonton AB CANPick-n-Pull Auto Dismantlers - Kelowna Kelowna BC CANPopow & Sons Body Shop, Ltd. Lacombe AB CANPremier Auto & Truck Parts, Inc. Cedar Springs MIPull-A-Part Akron Akron OHPull-A-Part Atlanta East Lithonia GAPull-A-Part Atlanta North Norcross GAPull-A-Part Atlanta South Conley GAPull-A-Part Augusta Augusta GAPull-A-Part Baton Rouge Baton Rouge LAPull-A-Part Birmingham Birmingham ALPull-A-Part Canton Canton OHPull-A-Part Charlotte Charlotte NCPull-A-Part Cleveland I (East) Cleveland OHPull-A-Part Cleveland II (West) Cleveland OHPull-A-Part Columbia Columbia SCPull-A-Part Indianapolis Indianapolis INFacility City State CountryPull-A-Part Jackson Jackson MSPull-A-Part Knoxville Knoxville TNPull-A-Part Lafayette Lafayette LAPull-A-Part Louisville Louisville KYPull-A-Part Memphis Memphis TNPull-A-Part Mobile Mobile ALPull-A-Part Montgomery Montgomery ALPull-A-Part Nashville Nashville TNPull-A-Part New Orleans West New Orleans LAPull-A-Part Winston-Salem Winston-Salem NCRansom Motors, Inc. Brandywine MDReitman Auto Parts & Sales, Inc. Melbourne KYRhinelander Auto Salvage Rhinelander WIRipple's Service, Inc. Upper Marlboro MDRobert's Engines, Inc. Lucama NCRoberts Salvage, Inc. Moffett OKRock & Roll Auto Recycling Pleasanton CARusty Acres <strong>Automotive</strong>, Inc. Jacksonville FLSalvage GM Parts of South Georgia, Inc. Valdosta GASchool Street Light Truck Parts Lowell MASchram Auto & Truck Parts Lansing, Inc. Mason MIScotty's Auto Parts Virginia ILSGI Salvage Moose Jaw Moose Jaw SK CANSGI Salvage North Battleford North Battleford SK CANSGI Salvage Regina Regina SK CANSGI Salvage Saskatoon Saskatoon SK CANSGI Salvage Yorkton Yorkton SK CANShipman Auto Parts, Inc. Brainerd MNSmith Auto & Truck Parts, Inc. Garden City KSSmith Auto Parts & Sales, Inc. Fairfield IASnyder Auto Body & Paint Clarinda IASouthern Maryland Used Auto Parts Mechanicsville MDSunscape Enterprises, Inc. dba Ace Auto Wreckers E. Brunswick NJSwift's Auto Salvage, Inc. Des Moines IAVan Horn Auto Parts, Inc. Mason City IAVander Haag's, Inc. Spencer IAVander Haag's, Inc. Des Moines IAWest Auto Wreckers, Ltd. Chula Vista CAOnline salesof industrial markersfor auto salvage and auction• Permanent paint markers from $1.30 each• Steel tip pressurized markers for wet and oily metals• Removable markers for auto repair and dealershipsFree Shipping for orders over $25We accept Visa, MasterCard, and American ExpressOrder online or toll free at 888-396-3848<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 61


Capitol ConnectionLatest Legislative Updates from the Hill and Around the CountryFiscal Cliff Bill IncludesBusiness Tax ProvisionsWhile most people are aware of theoverarching individual tax consequencesof the American Taxpayer ReliefAct of 2012, aka “fiscal cliff” bill thatpassed the House and Senate over theNew Year’s holiday, there was less publicdissemination of information on otherprovisions included in the final package.Many business tax provisions that wereslated to expire were extended, to thecost of approximately $69.9 billion.Provisions of interest to professionalautomotive recyclers are:• The 50 percent bonus depreciationis extended through 2013. Section 179expensing deductions for equipmentpurchased in 2012 and 2013 goes to$500,000 (a retroactive increase from$139,000 for 2012).• The 2011 and 2012 temporary payrolltax cuts end which results in a 2 percenttax increase for workers.• The individual tax rates for earnersof $400,000 (single) and $450,000 (married)become permanent while increasingthe tax rate to 39.5 percent from 35percent for income above that rate.• Capital gains taxes stay at 15 percentfor income below $400,000 (single) and$450,000 (married). 20 percent is themaximum rate for individuals withincome above those levels.• A 40 percent estate tax rate up to $5million (raised from 35 percent but itwill be indexed for inflation) becomespermanent.• The Research and Development(R&D) Tax Credit is extended retroactivelyfor 2 years.Metal Theft Bill Introducedin U.S. SenateARA met with U.S. House and Senatestaff to discuss details behind federallegislation targeted at addressing thetheft of metal. The “Metal TheftARA Meets With National Highway Transportation andSafety Administration on AirbagsIn late January, ARA met with staff from the National Highway Transportation andSafety Administration staff to discuss the NHTSA policies/statements on the use ofrecycled non-deployed OEM airbags. As previously reported, the November 2012NHTSA press release on counterfeit airbags included many misrepresentations anderrors about recycled airbags which ARA has and will continue to try and dispel. Asa result of this face to face meeting, NHTSA has pledged to ARA that it will requestinput from the professional automotive recycling community when it next considersrecycled airbag use guidelines. ARA staff is engaged in ongoing efforts to educateboth policymakers and consumers about the appropriate use of recycled nondeployedairbags.Prevention Act of 2013” was introducedby Senators Amy Klobuchar (DL-MN),Lindsay Graham (R-SC), ChuckSchumer (D-NY) and John Hoeven (R-ND) and mandates that purchasers of“specified metal” acquire documentationof ownership by the seller, require recordkeeping by the buyer of transactions for2 years and limit the cash payments to$100. There is no federal preemption of“any State or local law regulating the saleor purchase of specified metal” includedin the bill. A House companion wasintroduced by Rep. Eric Paulson (R-MN).The aim of the legislation is to stopthe theft and trafficking of metal fromentities such as government infrastructure(telephone, cellular, rail, etc.equipment) and home improvementretailers.ARA provided staff in both meetingswith a detailed explanation of the roleand function of professional automotiverecyclers as well as alerted staff to thealready extensive reporting requirementsthey must follow as mandated by state,local and federal laws and regulations.ARA is continuing to work with themand other Congressional staff to advocateagainst further proliferation of an ineffectiveand burdensome patchwork ofrecord keeping requirements.ARA Grassroots NetworkResourcesWith the state legislative season nowin full swing, it is critical that yourstate senators and representatives areeducated about quality recycled autoparts – and hearing from ARA membersis the first step. As constituents and smallbusiness owners in your community, youare uniquely qualified to communicatewith elected representatives and educatethem about the value of recycled autoparts.Information about how to locate yourelected official, how to host a facilityvisit/yard tour, tips for developing thatrelationship, and available sample lettersand talking points are available on theGrassroots Toolkit page of the ARA Website (www.a-r-a.org).ARA Grassroots ToolkitARA staff, along with ARA affiliatestate chapters and Regional Directors,will continue to actively monitor legislationin all 50 state legislatures thatcould potentially impact the professionalautomotive recycling industry.If you are interested in learning aboutwhat is going on in your state legislatureand in neighboring states, please contactJessica Thomas at jessica@a-r-a.org orcall (571) 208-0428.62 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


State IssuesHere is legislation that could potentially impact the professional automotiverecycling industry:Salvage Acquisition: In New Mexico, the House of Representatives isactively considered House Bill 8, which would require both sellers andpurchasers of salvage vehicles to be licensed by the state, introduce alimit on the number of vehicles a seller can sell to a non-licensed purchaserand incorporate the electronic reporting of vehicles reports ofsales to the state. The New Mexico Certified <strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong>has been meeting with their legislators to educate them aboutthe state’s salvage laws and urging support for HB 8. A recent House JudiciaryCommittee hearing considered the bill.Scrap Metal: Last year several states introduced and passed legislationin response to increased metal thefts, a trend which has continued in the2013 legislative sessions. ARA staff is monitoring several metal theft-relatedbills, and watching for any licensing and reporting requirementsthat may be incorrectly applied to or have implications for automotiverecyclers.In Rhode Island, Senate Bill 79 was introduced by the Senate MajorityLeader to address copper theft in the state. The bill would requirescrap metal dealers to be licensed in order to purchase certain types ofmetals, with reporting implications for secondary metals recyclers andsalvage yard operators. ARA joined the <strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong>of Rhode Island in submitting a letter to the senate sponsors asking thatsalvage yard operators be exempted from the proposed bill.In New Hampshire, Senate Bill 104 would establish a commission tostudy the state’s current reporting system for junk and scrap metal dealers.Oklahoma legislators are considering House Bill 1296 designed tocurtail metal theft. That bill does include an exemption specifically for licensedautomotive recyclers. Scrap metal bills have also been introducedin Arizona, Indiana, Kentucky, Maryland, Missouri, Nebraska,New Jersey, North Dakota, Utah, and Washington this year.Tire Sales: Legislation regulating the sale of scrap and used tires hasbeen introduced in Florida, Texas and Georgia. In Florida, House Bill485 was introduced as a consumer protection bill that would require retailtire dealers to disclose to purchasers the date of manufacture forused tires and to issue certain warnings relating to the age of tires. Georgiaseeks to broaden the state’s regulation of scrap tires to include thesale of used tires, introducing recordkeeping and inventory managementrequirements. In Texas, SB459 would change requirements governingthe sale, storage, transport and disposal of scrap or used tires.Purchase of End-of-Life Vehicles: Several states are considering legislationgoverning the purchase of end-of-life vehicles (ELVs) without a titlecertificate. In South Carolina, HB 3397 would make changes to thestatute regarding how a vehicle without a certificate of title may be disposedof to a demolisher or secondary metals recycler. In Tennessee,House Bill 30 would require motor vehicle recycler, dismantler, scrapmetal processor to conduct a lien check for motor vehicles 12 years andolder with no title. Several bills are being considered in Mississippi alldealing with the purchase of ELVs with a range of different holding periodsproposed. ■<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 63


Crossword PuzzleBy Murray JacksonAcross1. Accident-scene evidence (4,5)6. City-commuter’s ride, perhaps8. Underbody components, collectively9. Component in anti-theft system10. Hapless Hazzard Co. cop-car driver11. Tabletop racers (4,4)13. City thoroughfare15. Suzuki’s Sidekick replacement18. Drivers’ compartments in F1 cars19. Handout in truck-stop restaurant22. Windshield-wiper component23. Body shops’ complimentary cars24. Word near dipstick’s end25. Chrysler’s corporate logoDown1. Mechanic’s ratchet adjuncts2. State where Knievel jumped Snake River3. ’70s TV series with military Jeeps4. Used-vehicle transaction5. Chrysler Corporation’s ’60s-’80s angled engine (5,3)6. Defunct Olds SUV7. Big rigs12. Playmates song, Cadillac races Nash Rambler (4,4)14. Given name, seven-time NASCAR champ Petty16. Four-time Indy 500 winner (2,5)17. Chop-shop-car description18. Carroll Shelby’s muscle-car creation20. CD-player button21. ’03-’05 Subaru sedan/pickup hybrid64 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


2013 Industry CalendarAPRIL3-4Collision Industry ConferenceHyatt Regency PhoenixPhoenix, AZReservations: (888) 421-1442resweb.passkey.com/go/CollisionIndustryConference11-13URG ConferenceInverness Hotel Englewood, ColoradoFor Questions: E-mail urgconference@hotmail.comor call (303) 367-4391Keep checking for more information!19-20<strong>Automotive</strong> <strong>Recyclers</strong> of Michigan5th Annual Road Show & Business NetworkingConferenceSchram Auto & Truck Parts Lansing, Inc.1325 N. Cedar Rd. Mason, MI 48854-9586www.automotiverecyclers.orgContact : Barb Utterarm@mi.automotiverecyclers.orgLexington Lansing Hotel1-877-322-5544MAY3-4Upper Midwest Auto & Truck <strong>Recyclers</strong>Convention & TradeshowMorrison’s Auto Inc.6307 W State Rd 59 Edgerton, WI 53534-9420Contact: Sandy Dumkecarsofwi@yahoo.com10B-CAR Midyear MeetingPenticton Lakeside Resort21 Lakeshore Drive WestContact: kenhendricks@ara.bc.ca17-18Ohio Auto & Truck <strong>Recyclers</strong> <strong>Association</strong>Location: All Foreign and Domestic Auto500 North Wilson Rd.Columbus, OH 43204-1458Hotel: Marriott Courtyard Hotel2350 Westbelt DriveColumbus, OH21-23American Salvage Pool <strong>Association</strong> (ASPA)JW Marriott Starr Pass Resort and SpaTucson, AZRegistration Coming Soon!31-6/1Iowa <strong>Automotive</strong> <strong>Recyclers</strong>Jackson County FairgroundsContact: Sue Schauls(319) 233-7970iowaautorecyclers@gmail.comTo include your event in ARA’s calendar of events,e-mail the complete listing to jennifer@a-r-a.org.Visit www.a-r-a.org for most up-to-date calendar.JUNE7-8Alberta <strong>Automotive</strong> <strong>Recyclers</strong>and Dismantlers <strong>Association</strong>25th Anniversary & Annual GeneralMeeting & ConferenceSylvan Lake, AlbertaContact: Ian Hopeadmin@aarda.comwww.aarda.com21-22NEARA Trade ShowMark’s Auto Parts & <strong>Recyclers</strong>22 Russell Road, East Granby, CT 06026Contact: Marcy Kingmking@coresupply.comJULY25-28Florida <strong>Automotive</strong> Dismantlers & <strong>Recyclers</strong> <strong>Association</strong>(FADRA) Annual ConventionHyatt Regency Coconut PointBonita Springs, FLReservation: (888) 421-1442Contact: Kim O'Dell1-407-647-8839kim@crowsegal.comAUGUST8-102013 Car-Part.com ConferenceHoliday Inn1717 Airport Exchange BlvdErlanger, KYproducts.car-part.com/training/index.html17-18NM Certified <strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong>(MNCARA)Contact: Sandy Blalock(505) 301-6849bconsulting4u@gmail.comNOVEMBER6-970th Annual<strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong>Convention & ExpositionPhoenix Convention Center andSheraton Phoenix Downtown HotelPhoenix, Arizonawww.araexpo.org(888) 385-1005Save the Date! Registration Coming Soon!Ad IndexAA Midwest.......................................................................6Al-jon .........................................................................43ARA University .........................................................53Brock Supply Co.................................................21, 35Buddy <strong>Automotive</strong> Innovations ................................40Car-Part.com ...................................................56, C-4Company Wrench ....................................................46Connection, The .........................................................5CRUSH/S3 Software Solutions, LLC.....................46Hollander, a Solera company .............................C-3Knopf <strong>Automotive</strong>....................................................63Lamb Fuels.....................................................................61Liland .........................................................................52LKQ .............................................................................45Manheim ....................................................................11MarkingPenDepot.com ...........................................61Pemberton......................................................................39Pinnacle Professional .............................................19Pull-A-Part ....................................................................57RAS ...................................................................................13Recycle Cat.....................................................................58SAS Forks...................................................................17SEDA ...........................................................................18Sellick.........................................................................31Sierra International Machinery.................................9SuperShear ....................................................................49United <strong>Recyclers</strong> Group...........................................C-2Vander Haag’s, Inc...................................................65Wells Fargo Business Insurance ...............................15Get Ahead in 2013To advertise, contact Caryn Smith at(239) 225-6137 or e-mail ARAEditor@comcast.net.Puzzle Answers from page 64Send your 2013 events toMaria@a-r-a.org<strong>March</strong>-<strong>April</strong> 2013 | <strong>Automotive</strong> Recycling 65


Final ThoughtsBy Michael E. Wilson, ARA Chief Executive Officermichael@a-r-a.orgLeadership Decisions that are Making a DifferenceiStockphoto.comIn the January-February issue, ARA’shigh-quality publication, <strong>Automotive</strong>Recycling, devoted pages to the magic ofchange. As an <strong>Association</strong>, it is imperativethat ARA keep a close eye on our professionalautomotive recycling membersand make the changes necessary toaddress the needs of an evolving industry.To offer some back-history, in <strong>March</strong>2008, the ARA leadership decided on acourse of action that has transformedthe legislative and regulatory landscapein the professional automotive recyclingindustry. It was then that the <strong>Association</strong>made a determination that going forwardit would provide outreach andassistance on legislative and regulatoryissues facing local automotive recyclingmembers.The increasingly competitive landscape oftoday’s vehicle remarketing industry has propelledARA to identify for its global membership innovativeways to access and leverage their buying power.This decision significantly expandedthe day-to-day interaction between the<strong>Association</strong> and its affiliated industryorganizations. The calls, correspondence,and actual feet on the groundhave increased with each passing year.As the 5th Anniversary of this decisionpasses, I believe most member companiesstill view it as a prudent move thathad to be made. With a vast majority ofthe industry’s legislative and regulatoryactivity occurring at the state, provincial,and territory levels, ARA involvementwith sharing model lawmaking language,position statements, letters, and otherbackground information and resourcesto local entities has made a substantialdifference in their ability to addressimportant issues and concerns.As that decision transformed ARAactivity, so will others. In late February,the <strong>Association</strong> officially announced thatits subsidiary, ARA Product Services LLCreached an agreement with AltesoGroup of Companies of Langhorne, PA,to provide ARA members and ARA affiliatestate organization members a robustonline auction platform for the efficientprocurement of motor vehicles.ARA seized this opportunity to ultimatelyincrease members’ revenuestream, lower operation costs, andreduce the number of vehicles beingexported. In doing so, the <strong>Association</strong>once again takes a bold step to secureneeded resources to help address members’top priorities.The increasingly competitive landscapeof today’s vehicle remarketingindustry has propelled ARA to identifyfor its global membership innovativeways to access and leverage their buyingpower. The agreement between the ARAProduct Services and Alteso providesmembers access to a platform that isrequired to secure agreements with variousinsurance companies, wholesalers,fleets, franchise dealers, and others toassist members with additional opportunitiesfor their vehicle acquisition needs.Now, ARA through its subsidiary hasmultiple options within an online auctionplatform to address opportunitiesin a manner that significantly changesthe means by which members’ vehicleacquisition demands can be met.As the <strong>Association</strong> reflects on theseand other decisions it has or will make inthe future, I go back to that Mark Twainquote referenced in my last article. “Youwill be more disappointed by the thingsthat you didn’t do than by the ones youdid do.” Your <strong>Association</strong> is making bolddecisions to help better address the challengesof the rapidly changing professionalauto recycling industry. Withoutthe fortitude to do so, ARA would turninto museum of what once was, butunable to address what could be. ■66 <strong>Automotive</strong> Recycling | <strong>March</strong>-<strong>April</strong> 2013


<strong>Automotive</strong> <strong>Recyclers</strong> <strong>Association</strong>9113 Church StreetManassas, VA 20110-5456 USA

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