Automotive Recyclers Association ARA

Transcription

Automotive
Recycling
Selling
November-December 2014
Official Publication of the Automotive Recyclers Association
SMART
The Warranty • Green Recycled Parts® • eBay
PLUS:
• Innovations in
Yard Security
™
Automotive
Recycling
™
www.facebook.com/AutomotiveRecycling
www.AutomotiveRecycling-Ezine.com
November-December 2014 | Volume 34 Number 6
Co l u m n s
President’s Comments | 4
• Ricky Young
Editor’s Note | 6
• Caryn Smith
Final Thoughts | 66
• Michael Wilson
FOCUS ON
WARRANTIES
q
The Real Wow Factor / 29
Warranties provide the “wow” in customer
satisfaction on your sales and offer
companies a competitive edge.
By Michelle Keadle-Taylor
De p a r t m e nt s
ARA Action | 8
Insure This | 14
We Proudly Sell
GREEN RECYCLED PARTS
q
Strength In Numbers / 36
How to stop selling used parts and start
selling green recycled parts.
• Bill Velin
Marketing 101 | 16
By Jessica Andrews
• Mike French
Tech Knowledge | 18
Partners in Customers
Satisfaction / 40
• Andrew McDonald
How providers of Green Recycled Parts®
are helping Collision Repairers put green
in their repairs and their pockets.
That’s My Opinion | 20
• Ron Sturgeon
Net Profits | 22
By Caryn Smith
• Ben Laube
ISO 9001 | 24
• Mary McDonald
Plugged In | 25
• Michelle Keadle-Taylor
Word on the Wire | 26
• Andy Latham
Advice Counts | 28
INTERNET COMMERCE
q
eBay 101 / 44
For some, eBay is a mystery. For others,
it is a portal to some sweet added sales.
Here are tips to hitting your
target markets within eBay.
By Scott Ryan
• Jim Counts
Certified News
Capitol Connection
Crossword Puzzle
Industry Calendar
Advertiser’s Index
SECURING YOUR YARD
q
|
|
|
|
|
54
62
64
65
65
To Catch a Thief / 49
Utilizing innovations in security at your premises
can actually increase your revenues. Here’s how!
SPOTLIGHT
q
Diamond Auto Parts / 58
This Wisconsin Auto Recycler proves that winning
in business is all in the teamwork and the coaching.
By Lynn Novelli
On the Cover: iStock.com/jauhari1
Automotive Recyclers Association
9113 Church Street, Manassas, VA 20110-5456 USA
(571) 208-0428 / (888) 385-1005 / www.a-r-a.org
AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA, (571) 2080428 / (888) 385-1005, Fax: (571) 208-0430, Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Additional member subscription
are $15/year. Non-member subscriptions are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and nonprofits. Copyright © 2014 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are the responsibility of the authors alone and do not necessarily imply any opinion on the part of the officers, directors, staff, or the members of the Automotive Recyclers
Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA.
November-December 2014 | Automotive Recycling 3
President’s
Comments
By Ricky Young, ARA President
ARA Officers
PR e S I D e N T
Ricky Young
Young’s Auto Center & Salvage/Car Crushers
Benson, NC
[email protected]
FIRST VICe PReSIDeNT
A New Strategic Year of Teamwork
F
irst and foremost, I want to thank those who attended the 71st Annual Convention
and Exposition, hosted in the city of Nashville. Any time auto recyclers on such a
large scale can come together to discuss trends and business, and learn from each other
on best practices, our industry overall wins. This convention was top-notch from start
to finish, from session to session, from keynote to committee meetings all the way to
the sold out exhibition. Over 100 vendors greeted the attending auto recyclers ready
to help improve business practices. Nashville was a perfect backdrop to enjoy camaraderie and talk shop with friends and vendors.
As I said in my acceptance speech at the convention, I am humbled and, at the same
time, extremely proud that my automotive recycling peers have entrusted me with the
responsibility of becoming their ARA President.
I want to express my sincere gratitude to each of you for giving me this privilege.
It is a job that I take very seriously and I promise that I will do my very best to satisfy
the expectations you have for me and the Executive Committee and the ARA Board.
I want to thank each one of the Executive Committee for their own commitment to
our Association and to the industry: First Vice President Mike Swift, Swift’s Trails End
Auto Recycling; Second Vice President/Treasurer RD Hopper, Sonny’s Auto Salvage;
and Secretary David Gold, Standard Auto Wreckers. Special thanks also goes to
Immediate Past President Ed MacDonald, Maritime Auto Salvage, Ltd., for his service
to our Association for the last four years.
I also want to acknowledge the hard work of the Association staff, led by CEO Michael
Wilson. Without this team of dedicated individuals, ARA could not accomplish its goals.
I look forward to serving with all of you in the next year to move our industry forward within our established strategic plan.
We will strive to continue the pattern of extraordinary service and effective leadership that the past presidents and boards have established.
I say WE because it is a team effort. Without team effort, you can’t get much accomplished. With this being said, I am asking all ARA members to GET INVOLVED. Your
expertise and advice are greatly needed. Make the commitment to find the time to GET
INVOLVED. Our industry needs your help.
ARA will be holding a Strategic Planning Meeting in Cape Coral, Florida on January
21-23, 2015. The goal is to guide the direction that our Association will take in the next
few years.
Please come and be a part of this most important event. Each ARA member has a
personal invitation from me. Come and help us set the course for the future.
Thanks again for the opportunity,
Mike Swift
Swift’s Trails End Auto Recycling
Des Moines, IA
[email protected]
S e C O N D V I C e P R e S I D e N T/ T R e A S u R e R
RD Hopper
Sonny’s Auto Salvage
Jacksonville, AR
[email protected]
S e C R e TA R y
David Gold
Standard Auto Wreckers
Scarborough, ON Canada
[email protected]
I M M e D I AT e PA S T P R e S I D e N T
Ed MacDonald
Maritime Auto Salvage, Ltd.
Truro, NS Canada
[email protected]
ARA executive Staff & Contractors
ARA Headquarters • (571) 208-0428
CHIeF eXeCuTIVe OFFICeR & PuBLISHeR
Michael E. Wilson
[email protected] Ext. 14
DIReCTOR OF MeMBeR SeRVICeS
Kelly Badillo
DIReCTOR OF POLICy AND eXTeRNAL
A F FA I R S & e- C A R C e N T e R
Betsy Beckwith
D I R e C T O R O F S TAT e & G R A S S R O O T S
A F FA I R S
Jessica T. Andrews
DIReCTOR OF POLICy &
P O L I T I C A L A F FA I R S
Delanne Bernier
MeeTING & eXPOSITION PL ANNeR
Kimberly Glasscock
(615) 476-4501
[email protected]
A D M I N I S T R AT I V e A S S I S TA N T
Maria Miller
A C C O u N TA N T
John Caponiti
G O L D S e A L P R O G R A M , C O N S u LTA N T
Ginny Whelan
(239) 362-1283
[email protected]
C A R P R O G R A M A D M I N I S T R AT O R S
Betsy Beckwith, [email protected], Ext. 17
Kelly Badillo, [email protected], Ext. 26
Sincerely,
Ricky Young, ARA President 2014-2015
AuTOMOTIVe ReCyCLING MAGAZINe &
WWW.AuTOMOTIVeReCyCLING-eZINe.COM
Caryn Suko Smith
(239) 225-6137
[email protected]
For advertising, editorial, or production information,
e-mail [email protected] or call (239) 225-6137.
www.a-r-a.org
4 Automotive Recycling | November-December 2014
Editor’s Notes
By Caryn Smith
[email protected]
Getting to the Point: Educating Your Customers Helps You Sell Parts
I
’ve been told I am sometimes short on
words, so, let’s just cut right to my main
point. Inside this issue is an article that is
not written for you. It is written for your
repair and collision clients! On page 40,
we have reprinted a recently published
article that I wrote for the annual
“Green” issue of AutoInc., the magazine of
the Automotive Service Association. Why?
First, it is loaded with insight as to how
to communicate your value to your clients.
Second, there is a box on page 40, that is
the exact size of a business card. It is
designed for you to take your card and
place it there, and copy or scan the article. Then add it to your monthly mailings,
put it on social media, add it to your
enewsletter. Use this resource to reaffirm
why your repairers should use Green
Recycled Parts® from YOU!
Another companion article, on page
36, discusses the Green Recycled Parts®
resources available to you. Visit green
recycledparts.com, sign up and log in,
and start using the GRP brand to educate
the public and your business circle on the
real value to automotive recycling.
Since this issue is about selling parts
smartly, we have several ARA members
chiming in on the value of the warranty,
on page 29. Many auto recyclers sell
them, many don’t. Auto recyclers share
some practical ways to approach the issue
or fix your warranty program if its not
working effectively for you.
We round out the issue with some helpful hints on selling parts on eBay, on page
44. Your eBay program is sure to see
improvement if you follow some basic
sales techniques outlined here.
Lastly, what is your business worth if you
don’t protect the valuable parts you sell?
Our article on securing your yard might
inspire you to retire the dog and get a better system that deters and actually catches the crooks.
As always, send your feedback and story
ideas at [email protected]! ■
SAVE THE DATE
CHARLOTTE NC • OCT. 7-10 2015
ARA Action
Latest News and Reports from ARA
ARA Responds to Louisiana Attorney General; Defends Utilization of Recycled Automotive Parts
A
RA sent a letter to Louisiana Attorney
General James D. “Buddy” Caldwell
last week responding to mischaracterizations and disparaging statements made
about recycled automotive parts. In
public comments related to a recent lawsuit filed by the Louisiana Attorney
General’s Office against State Farm
Insurance for allegedly steering consumers to direct repair providers who
must comply with insurer requirements
for replacement parts, Attorney General
Caldwell is quoted as saying: “In some
cases, we’ve found that these parts are
nothing more than used junk yard
parts.” This statement leads consumers
to believe that salvaged/recycled automotive parts are unsafe and inferior to
new original equipment manufacturer (OEM) parts.
In the September 8 letter, ARA stated
that recycled genuine original OEM
parts meet OEM requirements, having
been designed by the OEM and built to
meet the OEM requirements for fit, finish, durability, reliability and safety.
Attorney General Caldwell’s mischaracterization of recycled automotive parts
does a disservice to consumers in
Louisiana by seeking to limit their access
to safe, affordable and environmentally
friendly automobile repairs.
ARA’s letter also highlighted the West
Virginia Supreme Court of Appeals’
recent affirmation of the use of salvage/
recycled OEM crash parts in vehicle
repairs. The Court found that neither the
West Virginia Automotive Crash Parts Act
nor Consumer Credit and Protection Act
statute prohibited body shops or insurers
from utilizing these parts, that aftermarket crash parts and salvage/recycled
OEM crash parts are “diametrically” different products and not interchangeable,
and, moreover, applauded the insurers
for using measures to reduce premium
costs for their customers.
“The West Virginia ruling is a significant
step forward for the professional automotive recycling industry and the
increased utilization of genuine, recycled
OEM parts,” said ARA CEO Michael E.
Wilson in a related press release.
“Regrettably, not all state attorney generals have educated themselves about our
industry and the critical role that recycled
OEM automotive parts play in the market.” To read the entire letter and ARA
press release, please visit the ARA homepage at www.a-r-a.org .
CIECA Symposium Highlights
Value of ARA Code Standards
ics and business management systems is
to processing parts orders and why the
messages used by all entities must provide
for accuracy and efficiency in order to
increase the recycled parts procurement
process. Panelists discussed how automated export and import models for
parts procurement and the utilization of
standard terms enables repairers to
reduce cycle repair time and increase
accuracy and quality part availability.
There was recognition of ARA’s contribution of code standards and messages to
develop electronic exchange messages
relating to recycled parts sales and the positive impact it has had for insurance carriers, repairers, parts distributors, recyclers,
business management systems, third party
intermediaries, and software companies.
ARA member and past president Norman
Wright, Stadium Auto &Truck Parts, Inc.,
stated in the panel discussions, “Using the
ARA CIECA standards enables the repair
ordering process to incorporate with recycled parts inventories and services.”
ARA Participates in 8th Annual
International Roundtable on
Auto Recycling
N
early 100 stakeholders from the collision repair, insurance, salvage
acquisition, parts procurement and information provider industries gathered in
Denver for the CIECA Symposium and to
focus on the role that data intelligence
plays in the repair of a damaged vehicle,
from the initial estimate to the finished
repair. The Symposium incorporated the
work of CIECA’s committees, including
the contributions of the Recycled Parts
and Inventory Committee chaired by
ARA member and past president Ginny
Whelan, which has integrated messages
to include and facilitate the distribution
of recycled parts. ARA and the work of
CIECA’s Recycled Parts and Inventory
Committee received numerous positive
references by panelists from all segments
of the repair industry.
There was a clear understanding
among Symposium attendees of how
important the data entering the estimat8 Automotive Recycling | November-December 2014
T
he 8th Annual International Roundtable on Automotive Recycling (IRT),
took place October 1-4 in Kushiro, Japan
and was hosted by ARA affiliate chapter,
the Japanese Automobile Recyclers
Alliance.
ARA President Ed MacDonald and
ARA CEO Michael Wilson traveled to
Kushiro to represent ARA and the professional automotive recycling industry.
They were joined by colleagues from the
automotive recycling, insurance, and collision repair industries from around the
world for what has truly become a global
event.
Program highlights included a welcoming night reception at the Kushiro Prince
Hotel, facilitated roundtable discussions,
factory tours and sightseeing opportunities, a barbecue, and country reports from
ARA, ARC, EGARA, ARAA, MAARA,
KARA, AARTI, and JARA.
American Recycler Magazine Features Article on Use of Non-Deployed
OEM Airbags
merican Recycler magazine recently featured an interview with several different industry representatives on the use of non-deployed OEM airbags, including ARA CEO
Michael E. Wilson. The author, Mike Breslin, noted that Wilson disagreed with a
spokesperson from the scrap industry and emphatically stated recycled OEM airbags continue to be used throughout the U.S. and around the globe.
Rebuilders and consumers faced with non-insurance covered claims, among others,
are currently the top users of non-deployed OEM
Wilson further noted that
airbags. Wilson further noted that ARA strongly
ARA strongly supports the supports the reuse of non-deployed OEM airbags
reuse of non-deployed OEM which have met specific industry standards and
that those evaluated recycled airbag components
airbags which have met
specific industry standards. are a safe, economically-smart repair alternative
to restore vehicles to their pre-accident condition.
ARA is pleased that after talking with many involved in this issue with differing opinions, Breslin ended the article with the following statements. “Practically, it seems a waste
not to reuse undeployed airbags from vehicles being scrapped. The metal value of the
canisters is negligible while the saving of using a recovered OEM airbag is substantial.
Perhaps ARA and responsible used parts dealers have a solution ... a rigorous protocol
for harvesting and storage, well-trained workers and meticulous documentation to the
repair shop and the vehicle owner to assure that the correct OEM airbag replacement
is installed.”
American Recycler is a monthly newspaper serving the recycling, salvage and waste industries and reaches more than 36,000 businesses. AR is an excellent source of new and
important government policies and regulations affecting the industry.
Read the full article: americanrecycler.com/8568759/index.php/news/categorynews-2/543-recyclers-face-challenges-with-non-deployed-oem-airbags
A
Auto & Truck Recyclers of Illinois
(ATRI) Annual Meeting
T
he Auto & Truck Recyclers of Illinois
welcomed professional automotive
recyclers, their families and employees,
industry vendors, governmental officials,
and a member of the ARA Executive
Committee to East Peoria for their “Back
to the Future” themed convention and
trade show. It was a packed program at the
Embassy Suites on the Riverfront, featuring industry favorites like Dan Bruner and
Rob Rainwater speaking on topics such as
hiring, marketing, Internet sales, and
sales training. ARA Second Vice President/Treasurer Mike Swift of Swift’s Trails
End Auto Recycling joined recyclers for
the festivities and shared updates on association activities.
The two-day program kicked off with a
Meet-and-Greet reception. This year’s program included two tour opportunities at
nearby Neal Auto Parts and Behr Iron &
Metal. Automotive recyclers and their staff
had ample opportunities to take part in
valuable training, hear updates from the
IEPA and enjoy the trade show. A panel
discussion moderated by Swift with representatives from PartsTrader, Car Care and
Collision, and CCC was especially popular
with attendees. The Illinois Secretary of
State joined auto recyclers on Thursday
afternoon and discussed ways of targeting
unregulated buyers in the state.
State of California Auto
Dismantlers Association’s
Annual Meeting
A
utomotive recyclers were in Napa
Valley recently for the State of California Automotive Dismantlers Association
(SCADA)’s annual Convention and Trade
Show. ARA Past President Ed MacDonald
and CEO Michael Wilson attended the
three-day meeting.
The program included an overview of
California’s new industrial stormwater
permitting program. The permit requires
more sampling, more observations, more
reports, and allows more public scrutiny
of your business. SCADA’s new storm
water program will prepare you for these
critical changes and help minimize the
threat of enforcement actions.
A highlight of the weekend was speaker Felicia Marcus, Chair of the State Water
Resources Control Board (SWRCB).
Attendees also welcomed guest speakers
from several state governmental and regulatory offices. SCADA has concentrated
efforts this year on encouraging the regulatory agencies and environmental groups
to turn their focus from licensed to the
unlicensed and illegal entities whose
unfair advantage in the marketplace is
driving increasing numbers of legitimate
auto recyclers out of business.
Speakers were invited to present their
perspectives on this challenging issue and
talk about their efforts to level the playing
field for professional auto recyclers.
Indiana Auto Recycling Summit
T
he Automotive Recyclers of Indiana
welcomed 30 exhibitors and 126 attendees to their Auto Recycling Summit. The
day started with a panel “Working
Together for Positive Change” that included ARA past president Sandy Blalock and
current ARA Second Vice President RD
Hopper, as well as Ashley Humphries
from the Indiana Secretary of State’s office
of Dealer Licensing. Recyclers and
exhibitors were thrilled with the event.
ARA’s Safety Committee
Publishes Fourth Workplace
Safety Newsletter
D
o you want to see a safety data sheet
in the new 16-point format for motor
oil? This new format will replace the familiar MSDS and manufacturers must use the
new data sheet format by Dec. 1, 2015 for
all their products. Do you also want to
read about all the fire safety information
that ARA and ARAU has available for
members and know how to avoid devastating fires in your workplace? If you
answered yes, then look no further! Download it from this link: origin.library.constantcontact.com/doc200/110315748
1133/doc/Friq1QVtBofibVT.docx
If there are other safety issues that you
would like to see featured in this newsletter, please e-mail [email protected]. ■
ARA Action
Latest News and Reports from ARA
ARA STRATEGIC PLAN IN FOCUS:
Increase Membership
In this final installment of Automotive Recycling magazine’s series of articles examining the ARA Strategic Plan and each of its strategic initiatives,
we focus on the value of association membership and provide readers with an update on how ARA is committing its resources and measuring its success. The ARA Strategic Plan is grounded in the Association’s mission to advance the automotive recycling industry and promote its beneficial effects
on society, and its vision to be the voice of the automotive recycling industry. The Plan articulates a future that realizes the full potential of members’
businesses and is comprised of five strategic initiatives that are the means through which ARA plans to translate this vision into practice.
MEMBERSHIP IS
PARAMOUNT
O
ne of the first tasks undertaken by
members of the ARA Board of
Directors, Past Presidents, and Committee Chairpersons participating in the
2013 Strategic Planning process was to
create an analysis of the association’s
strengths, weaknesses, opportunities, and
threats – also known as a “SWOT” analysis. The group identified membership as
one of ARA’s top strengths as well as one
of the biggest threats facing the association’s future.
The collective passion, expertise and
knowledge of ARA members have long
been recognized within the professional
automotive recycling industry, automotive
repair community and beyond. However
ARA is not immune from the threats
facing associations across all industries
and professions due to the changing
dynamics of member participation and
involvement.
In order to better advance the professional automotive recycling industry,
ARA member businesses, and achieve
the Association’s vision to be the voice
of the industry, ARA leaders agreed
that increasing membership and having a strong argument for the value of
that membership was paramount.
A member of the ARA Board of
Directors was paired with staff to be the
key points of contact for implementation
and accountability. Four implementation
strategies are outlined in the Strategic
Plan that describe how ARA is committing resources to increase membership.
Those implementation strategies are:
• Establish and Promote Mutually
Beneficial Relationship with Affiliate
Members;
• Develop Membership Growth Plan;
• Develop and Promote Associate
Membership Growth Plan with Key
Business Entities; and
• Further Develop Pilot Program of
Affiliate/ARA Dual Membership.
EXTENDING THE VALUE
PROPOSITION THROUGH
AFFILIATE CHAPTERS
ARA has over 50 unique affiliated chapters around the globe. These affiliated
chapters play a vital role, fortifying ARA’s
voice on behalf of the professional automotive recycling industry, representing
hundreds of automotive recycling businesses, and providing a critical lynchpin
between ARA leadership, staff, and the
membership at-large. Strengthening and
encouraging a mutually beneficial relationship with its affiliate chapter membership was pinpointed by ARA leaders
as a way to assess whether current association member benefits were of value,
identify those benefits that were no
longer driving recyclers’ value proposition when it came to investing in membership, and to increase utilization of
those benefit programs that were contributing to member success.
In 2013, ARA conducted a survey of the
affiliated chapter community regarding
the scope of benefits offered. The survey
was designed to identify where gaps existed between benefits offered through
affiliate chapter membership and
through ARA. In July 2013, ARA was
proud to announce a new benefit
exclusively for its affiliated chapter
members: a professionally designed
association website template and content management system. Over one
dozen affiliated chapters have taken
advantage of the new benefit so far.
Through increased regular communication, in large part facilitated by
ARA’s Affiliated Chapters Committee
and Regional Directors, flagship member
benefit programs such as the ARA
Marketplace powered by BizUnite, Wells
Fargo Insurance Program and Certified
Automotive Recycler program have
grown. Enrollment in the ARA University
has also increased due to increased col-
laboration and outreach with the affiliated chapter community. In May 2014, the
ARA University announced the creation
of a new 14-course safety training “bundle” designed for, and available only to,
affiliated chapters of ARA.
RETAINING AND GROWING
MEMBERSHIP RANKS
ARA leaders are continually striving to
assess current association programs,
resources and benefits available to all categories of membership as well as working
to identify new benefits to meet the
changing needs of the professional automotive recycling industry.
Association leaders are focused on
investing in the benefits, programs and
information that automotive recyclers
can only get through being a member of
ARA. Through their regular interaction
with rank-and-file recyclers located in the
United States and around the world, the
Association’s 14 Regional Directors serve
as ambassadors of ARA’s value proposi-
tion – recruiting new members, working
to retain members, and giving current
members in their region a voice on the
Board of Directors. ARA leaders have
made it a priority to attend as many inperson meetings of the affiliated chapters
as possible. Members of the ARA
Executive Committee regularly attend
affiliate chapter meetings to share association news, committee and program
activity, and engage with current and
prospective members.
Over the past two years, ARA has concentrated on ways to grow the number of
associate members, those companies and
organizations that engage in the business
of selling supplies, equipment or services to the professional automotive recycling industry. Associate membership
ranks continue to grow with companies
like eBay, CCC Information Systems and
Mitchell International formalizing their
relationship with ARA after many productive years of working together. Earlier
this year, ARA also introduced a new
membership category specifically for
insurance companies.
BUILDING AN ORGANIZED
PRESENCE FOR AUTO
RECYCLERS
ARA has taken steps internationally to
support local automotive recyclers in
areas in which there is no organized representation of the profession. ARA has
welcomed several new affiliated chapters
including: the Alabama Automotive
Recyclers Association, the Missouri Auto
& Truck Recyclers Association and the
North Dakota Automotive Recyclers
Association. Initiatives continue to establish and strengthen the footprint of the
professional automotive recycling industry in North America and around the
world. ■
To receive a copy of the Strategic Plan goals
for 2013 or 2014, please contact ARA staff at
571-208-0428 or [email protected].
Insure This
By Bill Velin
[email protected]
Why Business Interruption Insurance?
he best place to start a conversation
about business interruption insurance (also known as Loss of Business
income insurance) is to understand what
it is. It insures loss of income in an
amount sufficient to cover continuing
expenses and lost profits, if any, during
an unforseen interruption in your day to
day business operations.
If your business is operating successfully, it is earning enough to cover
expenses and generate a profit. If you
have a fire which forces your operations
to cease, some of your expenses will cease
or will be reduced. For example, you may
have a reduction in power or fuel consumption, which will reduce your operating costs. Business Interruption insurance does not cover those non-continuing expenses. However, it will cover those
expenses that you will be required to pay
whether your business is operating or not
– such as loans, taxes, mortgages, etc.
Also note that you do not have to be
making a profit to benefit from business
interruption insurance. In fact, nonprofit organizations frequently purchase
Business Interruption insurance just to
cover on-going expenses, including
salaries of key personnel. So do not consider this coverage only as insurance
against lost profits.
Of course, not every shutdown of your
business will trigger coverage. Before you
can even think about recovering a loss
under a Business Interruption policy,
there must first be direct physical damage from an insured peril to your premises – during the term of the policy – that
causes an interruption of normal operations and a loss of earnings. The policy
will pay for the loss of earnings during
the time required to restore the business
to normal operating conditions or until
the limit of business interruption insurance is exhausted.
The place to start when determining
the appropriate amount of business
iStock.com
T
There must first be direct
physical damage from
an insured peril to your
premises – during the
term of the policy – that
causes an interruption
of normal operations and
a loss of earnings.
income insurance is with your accounting records. Ideally, the entries in your
accounting journal, the record of
accounts in your general ledger and your
income statement will provide the basic
information you need to calculate the
correct amount of business interruption
insurance needed. Each insurance company in the marketplace has a business
income worksheet form you can use to
calculate the correct amount as well.
Most of these worksheets will take you
through an exercise that will help you to
come up with an estimated length of
time it will take you to get back to “preclaim” business operations. Once you
know this, and the amount of monthly
earnings and net profits, it is relatively
simple to calculate how much coverage
to buy.
The final question you need to answer
before buying this coverage is whether or
not you should cover “ordinary” payroll.
Should your business be shut down for
an extended period of time(such as 6-9
months), you will most likely not be able
to afford to pay your ordinary (as compared to key) employees if you have no
revenue coming in.
If you went to them and advised them
that they were out of a job until your business operations resume 6 to 9 months
down the road, would most of them simply go home and wait 6 to 9 months without a paycheck until you called them
back to work? Or would many of them be
forced to take a job elsewhere, in which
case you may not ever get them back
once you are ready to resume operations.
Many businesses have a lot of “ordinary
payroll” employees that are really “key” to
the success of your operation that you
would not want to jeopardize losing in
the event you could not pay them for an
extended period. Therefore, you may
want to include “ordinary payroll” in your
business interruption calculation. That
way, you would be able to pay them their
wages and benefits during the period of
re-construction and retain them going
forward.
In summary, the key to Business
Interruption insurance lies in understanding what the potential for a business
interruption loss is – future earnings,
length of the shut-down, and additional
expenses incurred, including covering
ordinary payroll.
Business Interruption insurance is the
only insurance available to “insure your
income statement.” If you feel it is critical to have your income statement guaranteed, you may want to seriously
consider this coverage, which can be purchased as part of your property insurance. ■
For more information on how Wells Fargo Insurance Services 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.
Marketing 101
By Mike French
[email protected]
Is Direct Mail Dead?
few short years ago, before the
Internet and social media
gained popularity, direct mail was
marketing king. In fact, the common complaint from most people
was about the huge onslaught of
junk mail landing daily in their
mailboxes. But, the reason why
there was so much of it back then
was because it worked very well.
The first direct mail campaign I did
for a salvage yard in 1982 just about
swamped the business with the
amount of phone calls they
received from it. The sales people
could not keep up with the amount
of calls!
Things have changed a lot since
then. Today, a lot less so-called
“junk mail” is going into the mail
because businesses began switching away from direct mail when
they discovered that people
responded well to electronic type
marketing methods, which is virtually free, and direct mail is not
free. And that worked very well for
a time.
Now it seems we have come full
circle and history is starting to
repeat itself. As the great Yogi
Berra used to say, “It’s Deja Vu all
over again!” People are now complaining
about electronic marketing the same way
they once griped about getting so much
junk snail mail. And it’s getting harder
for businesses to achieve positive results
from electronic marketing campaigns
because consumers are beginning to
become blind to it.
It appears that electronic advertising
has evolved not so positively with all the
new invasive ways of targeting and
exploiting the buying habits of everyday
consumers. People are feeling threatened and putting up defenses to it. New
sophisticated spam filters are recognizing
and eliminating electronic advertising
iStock.com/nicolas
A
before it even arrives in in-boxes.
So, back to our question, “Is direct mail
dead?” To reference a Mark Twain quote,
reports of the medium’s death have been
greatly exaggerated. Direct mail is very
much alive. Let’s look at the evidence.
According to Market Scan, “the figure
for available e-mails is around 20 percent
of postal addresses, meaning that by
avoiding direct mail you could be missing 80 percent of your target market.”
People who regularly use e-mail have
become more savvy at blocking sales messages with advanced filters. People also
discontinue e-mail accounts and create
new ones about once every year, making
solid leads suddenly disappear.
A study done by the Direct
Marketing Association found that
the response rate for direct mail to
an existing customer averages 3.4
percent, compared to 0.12 percent
for e-mail.
Here are a few reasons to use
direct mail:
1. Less competition. With less
“junk mail” arriving these days,
your marketing piece is most likely
to get noticed by your prospect.
2. You are putting something into
your prospects hands. Studies have
shown that 50% of humanity is
“tactile,” meaning they respond
best with something in their hands.
3. Guaranteed address. You are
sending to a guaranteed address.
This isn’t always true with email
because most people, especially
businesses, have a number of email addresses and you don’t know
which one they are checking. Many
also change their e-mail address
every year, and when they do, you
can lose contact with them permanently. Not so with direct mail.
4. Long shelf-life. Newspapers
last a day, radio and TV messages
are over with instantly. Consumers
hang onto direct mail and refer to
things which interested them, often.
And they can be posted so they will see
your map, phone number and coupons.
5. Can be personalized and targeted.
You can send to the correct person and
even have their name printed on the
piece.
So the answer is, direct mail is not
dead! It’s alive and well and working
hard for those who use it correctly! ■
Mike French, president of Mike French &
Company, Inc., can be reached toll free at 800238-3934, or visit his company’s Web site at
www.MikeFrench.com.
Tech Knowledge
Andrew MacDonald, ARA Technical Advisory Committee
What Goes Up, Must Come Down – The Tundra Take Back Project
T
hose who are involved in the autostrong partnership with
motive life cycle – manufacturers,
the Automotive Recycconsumers, repairers and recyclers – are
lers of Canada (ARC),
all aware of the hazardous materials that
to educate, remove, colare used to keep our vehicles functionlect and dispose of
ing. Each stakeholder in the vehicle life
these mercury switches
cycle has a responsibility to ensure that
with the ultimate goal
these hazardous materials are identified,
of keeping the mercury
contained, and disposed of properly.
out of the steel mills
Manufacturers identify all materials
due to the extreme
and fluids in a vehicle through warnings
health hazards associat- ELV Recycling Guide
and labels. Consumers and repairers
ed with vaporized merreplenish these materials and are
cury.
required by law to dispose of the waste at
Summerhill became aware in late 2009
legal disposal sites, and certified automothat there were significant challenges to
tive recyclers depollute and remove hazrolling out the Switch Out program to
ardous materials before sending the
the Canadian territories, and came to
vehicles to the shredder for processing.
realize that the Canadian North was missOne hazardous mateing a key stakeholder in the vehicle life
rial that is not comcycle – the automotive recycler. There
monly known is the
was a demand for vehicles in the North,
elusive mercury switch.
but there is currently no infrastructure in
A mercury switch was Mercury Switch
place to have these vehicles removed at
typically used in vehiend of life. Therefore, end-of-life vehicles
cles for convenience lighting and ABS
have been piling up in the northern comsensor modules. Basically, when the mermunity dumpsites ever since the very first
cury rolls forward within a capsule (ie:
vehicle landed there.
open your hood) the mercury closes the
Summerhill, over the next few years,
electric circuit and turns on the light, triggathered partners and stakeholders
gers your ABS, etc. These switches were
including Environment Canada,
used for convenience lighting purposes
Government of Nunavut, Nunavut
from as early as the 1976 Porsche 924
Sealink and Supply, Gerdau steel mills,
through to 2002 Chevy S10. GM, Audi,
Arctic Co-operatives, Automotive RecyclFord, Chrysler, and others all used them
ers Association, Canadian North and
in their vehicles until 2002.
Calm Airlines (the list goes on). They
Enter Summerhill Impact, a not-forpooled everyone’s resources, developed
profit Canadian organization focused on
and then implemented a plan to train
creating and facilitating public engagecommunity members and depollute
ment programs related to positive envivehicles in two Nunavut communities
ronmental and health
(hamlets); Gjoa Haven
impact. Summerhill develand Arviat. The goal was
oped a program called
to remove five 20 foot
“Switch Out,” funded by
shipping containers from
the Canadian Steel Prodeach hamlet containing
ucers Association (CSPA)
all of the pollutants and
and the Canadian Vehicle
some of the vehicles.
Manufacturer’s AssociaI was lucky enough to be
Tundra
Take
Back
Pilot
Communities
tion (CMVA), and a
asked to help out over the
past year from the vehicle recycling side and
provide advice and
suggestions to the
Tundra Take Back
team to help make it a
success. Even more
exciting was the fact
that I was given the
opportunity to participate in Gjoa Haven for
two weeks at the end of
August. One Summerhill representative
and two auto recyclers went to each community.
Summerhill developed a Guide to Endof-Life Vehicle Recycling in the North and we
brought it to the communities as a tool
to share, with an understanding that our
lessons learned on this pilot would further develop the guide to be used in the
other communities.
My experience in Gjoa Haven was
nothing short of incredible. Taking a
‘milk run’ of a flight, my literal itinerary was Halifax/Toronto/Edmonton/
Yellowknife/Kugluktuk/Taloyoak/Camb
ridge Bay/Kugaaruk/Gjoa Haven. Gjoa
Haven is on an island, and was literally
isolated from the outside world until
1903 (actually not too far from the recent
Franklin ship discovery). This means that
some of the community’s elders growing
up lived off the land 100%, hunting caribou, muskox, arctic char, and seals. Keep
in mind that we are well above the tree
line and there is little to no vegetation.
It’s August and it feels like Nova Scotia’s
November (2-10°C) and the sun would
set, although it was never fully dark,
between 11pm-3am. Gjoa Haven remains
isolated to this day; there are daily flights
but only one sea lift of supplies lands
each year in September.
The first day we met with our crew of
six temporary and full-time employees of
the Hamlet of Gjoa Haven. We reviewed
the guide and depolluted our first truck.
Gjoa Haven, NU
Over the next ten days, we depolluted 40
vehicles and filled our 5 shipping containers with over 20 barrels of oils, gas,
and coolant, over 600 batteries, hundreds of tires, six catalytic converters,
many mercury switches, one container of
R-134a, and two whole trucks!
Of course, we had to leave the remaining vehicle bodies for another day, but it
was certainly rewarding to know that they
were properly depolluted and the
remaining vehicles could be depolluted
by the community now that they had the
training and skills. Furthermore, Summerhill arranged that the AC removal
equipment, fluid extraction pumps,
drills, and many tools were left with the
Hamlet for future vehicle processing.
A form of recycling already exists in the
Nunavut communities; the locals call the
dump site “Canadian Tire” due to the fact
that they go there to harvest any usable
Gjoa Haven Tundra Take Back Team
vehicle parts. Auto recycling in the rest of
Canada can take place
without financial assistance and partnerships
because there is a profitable business model in
place. However, in the
North, the shipping and
handling fees greatly out- Two trucks loaded into a container
weigh any realized revenue from the salvaging process.
sis and protecting the environment is
Summerhill and their partners are now
important, but that shouldn’t be limited
faced with the next challenge: how to take
only to areas where there is a fiscal gain
the lessons learned from these pilot proto be made. If anything, Tundra Take
grams and implement them in the rest of
Back puts such a unique set of constraints
the northern communities. Is there a way
on the concept of vehicle recycling that
to make this work profitable, or at least
there are probably many efficiency and
cost-neutral? Finally, how can the comcost saving lessons that we in the ‘south’
munities and/or the territories sustain
will be able to take away from the prosome sort of model over time?
gram in time. I look forward that time in
We know that product life cycle analythe coming years – what goes up must
come down!
If you want to donate to Summerhill
Impact’s ‘Take Back a Tonne from the
Arctic” effort to remove all of the pollutants from the Canadian North, go to this
website http://fnd.us/c/aoTr1 or scan
the QR code below! ■
Andrew MacDonald is an owner of Maritime
Auto Parts, and Chair of ARA’s Technical Advisory Committee. Formerly, from 2007-2010 he
worked with Toyota in Quality Control Engineering on the Toyota Rav-4 at TMMC-Canada.
That’s My Opinion
By Ron Sturgeon
[email protected]
Website Wisdom
Investing in your web presence is not different from buying a second delivery
truck or opening a new location.
Done right, your web presence will continue to bring you new revenue and new
customers for years, so long as you continue to invest in it.
iStockphoto.com/kchungtw
What should a good website cost
to develop and maintain?
Done right, the web
presence will continue
to bring you new revenue
and new customers
for years.
Do you think that expanding
your web presence is too
expensive?
M
ost everyone I talk to doesn’t want
to spend too much money to
expand their web presence. I don’t get it.
If you opened a new trade area, you
would buy a new delivery truck and hire
an employee, right? If you opened a new
location, you would spend thousands of
dollars to get it up and going. Maybe even
hundreds of thousands of dollars,
depending on the market, right?
How is expanding your web presence
any different? It isn’t. Your web presence
is expanding your trade area globally.
And expanding a web presence properly
is one of most cost-effective ways to grow.
The key is to keep the right mindset
about your web presence. Don’t think of
your web presence as an operating
expense. Think of it as an investment in
capturing a new segment of business.
A well-done web site that is built to be
search-engine friendly will cost at least
$3,000, but can easily run to $6,000.
Doing the initial Search Engine
Optimization (SEO) work to make the
website easy for visitors to find – building
basic backlinks, listing in directories, getting placement in local search, issuing
press releases and many other items – will
cost between $5,000 and $10,000. I can
give you a free checklist of SEO items that
should be part of the initial SEO (contact
me and I will send it to you.)
Maintaining the website means adding
new content based on analyzing traffic,
issuing press releases, blogging, and
building backlinks to your site, etc.
Estimate $1,000 per month minimum,
though it can be done in house for
much less in only a few hours a day.
Design your business website without
considering SEO and neglect the work to
launch it properly and keep it up, and
you will get average (or poor) results. You
will conclude that the web doesn’t produce revenue for small businesses like
yours. ■
Ron Sturgeon, an author and founder of Mr.
Mission Possible small business consulting,
www.autosalvageconsultant.com, combines
over 35 years of entrepreneurship with extensive experience in consulting, speaking, and
business writing. Ron shares his expertise in strategic planning, capitalization, compensation, growing market share
providing field-proven, high-profit best practices.
Net Profits
By Ben Laube [email protected] email
Make Warranties Sexy on Social Media
he majority of consumers know what
a warranty is and how one basically
works. But, do they really understand the
benefits they gain and the risks they avoid
when investing in one?
Warranties are a great extra product to
provide from the business perspective
due to the statistical risk. For every 10 warranties you sell, rarely will more than one
be actually claimed. So how do you
increase your revenue and warranty sales,
especially with social media? Well just like
marketing anything online, the key is
transparency and clarity.
Be Transparent & Educate. Tell the customer what they are getting. Boil down
the legal aspects of a warranty to it’s simplistic form of “when this happens, you
get this.” The simpler the marketing message is, the easier it will be conveyed and
received by the customer. This is all also
a process of educating your customers
and making sure they are fully informed.
Build Trust in Warranties. One way is
to collect customer testimonials on social
media. Not only can you use social media
to promote your warranty plans in a concise clear way, but you can also collect testimonials from existing customers who
have taken advantage of the warranty
and had a positive experience. Some
businesses want to sell warranties and
their customer to not take advantage of
them (that is, of course, how they make
their money). However, for the customers that do take advantage of the warranty, you need to treat them well and
make it a great experience so their testimonial will convince potential future customers to also buy in.
Use Social Media as a Landing Page.
Consider your social media presence as
another existence of your business. This
may sound obvious, but thinking of it this
way will ensure that you participate in
building your social presence. When
potential customers find you on social
media, you want them to continue
exploring more about your business.
This may mean scrolling through your
Facebook page, then visiting your website, and eventually calling or visiting your
location. So be consistent online with
your social media presence and make
sure they all link to other resources about
your business.
Respond Publicly & Quickly. Communication through social media is 90%
a public act. Keep this in mind when you
are responding to customer’s messages,
posts, or complains. Maintaining professionalism and clarity through your communication is vital for your brand’s
visibility. Even in private messages, sending something inappropriate or wrong to
a customer could be screen-captured,
posted, and shared with the world.
Responding quickly is also important
to show you care about your customers
and brand. Many people, especially the
younger generation, would much rather
tweet a question to a company than fill
out an online form to e-mail the question
or dare I say, pick up a phone and call.
The younger generation is one that
expects instant gratification, and in your
case – instant response.
Use Imagery to Convey Confidence. A
picture is worth a thousand
words and a good picture
also communicates much
more to customers more
quickly. Using photography
or designed graphics to convey messages about your
business and warranties will
greatly increase your
engagement. Statistically,
photos are more popular
among users to view and
share. This is one reason
why Instagram, the photo
only sharing social network,
has become so popular
along with Pinterest.
Handle Claims with Care.
Last, but definitely not least, is where all
the above really comes into play. Selling
warranties is just the beginning of the
service you provide. Handling claims
would be the finish line of the race,
which is just as important. Though not
everyone may file a claim (if they did, the
warranty business wouldn’t be worth it),
the ones who do need to be handled
with care. If you focus on making the
claim process transparent, open, and
quick, you will then build trust with your
customers. Nothing is worse than a bad
reputation online, so create a good one
by collecting customer feedback when
processing claims. Gain testimonials and
fix any part of the process which may be
impacting the experience negatively.
Then publish all that great content
(feedback & testimonials) on your social
media to help better sell warranties and
engage potential customers! ■
Ben Laube is President and Founder of POLR
Marketing, a growth marketing technology
company. Through the use of content writing,
pay-per-click, ethical SEO practices, web design & development graphic design, and
strategic planning, POLR Marketing offers the services you
need to help grow your business to the next level. To learn
more about POLR Marketing, visit www.polrmarketing.
com or call POLR Marketing at (407) 712-4836.
iStock.com/Nerthuz
T
ISO 9001
By Mary McDonald [email protected]
CAR, ISO 9001, and The Bronze Level of AR 9001
T
he automotive industry has several
standards for systemizing your parts
quality and delivery. Most of them are
internal requirements (only recognized within the automotive recycling
industry, or in an associated industry
like collision repair), yet are based on
international requirements like ISO
9001 for Quality, ISO 14001 for
Environmental, and OHSAS 18001 for
Occupational Health/Safety.
Let’s look at how CAR certification
requirements match up to other standards:
In Table 1 below, you’ll see the comparison of CAR to international standards. As you can see, compliance to
international standards is not anything
different than meeting requirements to
automotive recycling internal standards, with one important difference.
International standards are recognized
outside the industry and accepted by
many industries as a firm indicator that
you are committed to “doing the right
things right.” For yards that are participating in CAR, they will find it very
easy to move up to international registration, by building on what is already
in place to comply with CAR certification.
The table also highlights the fact that
both CAR and AR 9001 have combined
requirements – requirements for parts
quality; also for environmental protection and employee safety. This ensures
that we are meeting the triple bottom
line of sustainability – we are making
profit, we are protecting our people,
and we’re being kind to the planet.
One way to think about this is the 3 P’s
– People – Profit – Planet.
Meeting one standard helps us to
meet multiple requirements – keeping
our folks safe on the job, protecting the
land for future generations, and providing a living for our folks as well as
making a profit for the yard owner.
Meeting CAR requirements, or the
Bronze level of AR 9001 requirements,
puts you on the path for external, international recognition via the ISO or
OHSAS standards.
Next month we’ll talk about Gold
Seal certification and how it builds into
these standards. See you then! ■
Mary McDonald is the CEO/CTO of The McDonald Consulting Group since 1995, working
to help clients improve processes to positively
affect the bottom line. She is a Certified Quality Auditor and a RABQSA Certified Lead Auditor in several
standards, as well as an author and speaker on systems
integration and strategic business planning.
Table 1 – Comparison of CAR to International Standards
RequIReMeNT
SAFETY PROGRAM
EMPLOYEE PARKING - DRAINAGE
BUILDINGS – MAINTENANCE
FLUIDS REMOVAL / DISMANTLING
FLUID STORAGE
LABELING OF STORAGE CONTAINERS
SPILLS AND LEAKS – FLUIDS
BATTERY STORAGE / REMOVAL
OSHA REGULATORY REVIEW
CUTTING TORCH
EYE WASH STATIONS/ FIRE EXTINGUISHERS / SPILL KITS
CORE STORAGE AREAS (ENGINES, ETC.)
VEHICLE STORAGE
CRUSHER AREA
PARTS CLEANING
SWPPP / SPCC / SAMPLING
HAZ COMM / GHS / MSDS
SHIPPING OF AIR BAGS
FORKLIFT TRAINING
RECORDKEEPING – FLUIDS/FUELS
RECORDKEEPING – MERCURY/ BATTERIES/
REFRIGERANTS / TIRES
CAR
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
ISO 9001
ISO 14001
OHSAS 18001
X
BRONZe AR 9001
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Plugged In
ASSOCIATe MeMBeR
Advance Remarketing Services Provides Mobile Apps for Efficiency
A
dvanced Remarketing Services
(ARS) offers innovative solutions to
some of the remarketing industry’s toughest questions,” said Joseph Hearn, CEO,
Advanced Remarketing Services. “Our
company was started in 2007 with the
principal ambition to take advantage of
emerging technology and offer an alternative to traditional salvage auctions.
Our mobile app, mBid®, is really the
natural evolution of our remarketing platform and mobile communications. Our
company, like many small companies, is
focused on identifying efficiencies from
other industries and technologies and
applying them to our niche-marketplace,”
he said.
“Our clients need fast, reliable, results
from a driven partner to handle their
low-end total-loss vehicles throughout
the country. Our focus has always been
on the bottom of the vehicle life cycle.
We substantially increase net dollar
recoveries on low ACV vehicles by bringing buyers and sellers together via our
ARS web-based management and bid
program.”
From Seller to Buyer
According to Hearn, ARS sells more
cars directly to licensed recyclers and dismantlers than anyone else in the country. They have over 2,000 licensed buyers
currently registered to purchase through
their company.
The mBid® model allows recyclers of
all company sizes to bid on vehicles
directly from insurance companies without the costs associated with buying
through the auctions. Hearn says their
platform creates opportunities for both
the buyer and seller to reduce costs and
cycle time.
“Typically mBid® saves the buyer
between 80% to 90% off normal auction
costs,” said Hearn. “Local buyers have the
most economic advantage because they
pick the salvage up directly from the sell-
er, instead of having to pick the cars ups
from auctions that might be several
states away. This provides the most convenient, cost-effective way to buy low-cost
salvage at the best price.”
ARS processes thousands of vehicles
every day throughout the U.S. Its staff
and its ARS systems technology manages
the sales processes from vehicle assignment to close in real time.
ARS also provides mClaim, which is
another app that allows the buyer and
seller to provide information back to ARS
for reporting purposes. From First Notice
of Loss, ARS’ Predictive Total Loss
Process can reduce claim handling and
pickup times, and dramatically change
cycle times, reducing days to mere hours.
ARS Advantages
“Our national marketplace of buyers
and towers allows us to move quickly and
efficiently,” said Hearn. “This is one of
the advantages to using our services and
mBid®.” According to Hearn, there are
definitely other apps for purchasing auto
salvage; however he says the following are
the advantages to mBid:
• ARS apps are unique in that they
address logistics since the vehicle is not
located at an auction, it is being bid from
a storage location or residence.
• ARS apps are thoroughly customizable from a user experience, where the
buyer can establish multiple profiles.
• The ARS fees associated with the programs and apps are low.
• The ARS program offers purchasing
opportunity to the local buyer. It allows
buyers of all sizes and appetites to compete on the vehicles that interest them,
so the buyer most local (closest) to the
piece of salvage has the best advantage of
transportation costs.
Bidding Action
For recyclers interested in using
mBid® all they need to do is to register
and provide their license and insurance.
There is no cost to register with ARS.
“We have a good relationship with auto
recyclers, because we get it,” said Hearn.
“We understand that for the rank and file
ARA member, there are so many things
that demand their attention, they want a
service that requires little maintenance
but consistent opportunities. We are
determined to be a good and loyal partner to auto recyclers.”
Where We are Different
ARS focuses on the entire vehicle life
cycle. Where there are dozens of remarketing companies that deal exclusively
with late model “whole” units, the ARS
core competency is handling not only
the high dollar value pieces, but also systems and services that allow the ability to
remarket damaged vehicles, parts vehicles, low value units, and end-of life-volume. “These low value pieces are mostly
overlooked by other remarketing companies but where others see difficulty, we
see opportunity,” said Hearn.
“Our state of the art Remarketing
Platform and call center allow us to carefully assess each vehicle before making
any moves with the vehicle. We survey the
facts of each unit individually, look closely at the basics of each piece along with
condition, damage, title situation, and
location. We match the vehicle to the
best sales venue to deliver the highest
return.”
ARS’s years of experience proves that
buyers come in all types, shapes and sizes.
They profile dealers, parts suppliers, dismantlers, recyclers, and scrap processors
to find out their specific appetites.
“By understanding these and marketing directly to them,” says Hearn, “the
small shop has just as much buying
power as the multi-location operation.
Custom-fitting the marketplace delivers
remarkable results.” ■
Michelle Keadle-Taylor is a writer based in Northern Virginia.
Word on the Wire
By Andy Latham
[email protected]
Passion and Innovation Set Yards Apart
S
tuck on the London Orbital Motorway (M25), again, I was thinking
back over the previous few days and visits completed to a variety of auto recycling yards around the United Kingdom,
and one underlying factor was present in
every place it went to – passion.
Wherever I went, it was the same, it
did not matter if the business was thriving or struggling, large or small, in town
or in the countryside; I could feel the
passion and see it in the attitude and
behavior of the senior managers, owners, and staff I met.
The UK could be described as one of
the most competitive markets for auto
recyclers in the world, needing to meet
European Union targets for vehicle recy-
cling, controlled by legislation, regulated
by a voluntary code of practice that limits the resale of some safety-related components, open to buyers from the whole
of the EU, limited opportunities to sell
into the insurance repair market, and
with increasing competition from nonOE suppliers, some may wonder how so
many companies can make a living from
this industry.
Fully embracing best practices and
new technology, many companies are
utilizing all the options available to
them to sell their products, improve efficiency, raise customer service standards
and drive profit back into their business.
One company I have recently worked
with has implemented these ideas fully.
From their base in the Kent countryside, they offer end-of-life vehicle collection across the whole of the county,
guaranteeing best prices and vehicle collection within 48 hours. They have built
excellent working relationships with a
range of customers and suppliers in the
local area, and work hard to maintain
those relationships by keeping their promises, and visiting regularly to check
that they are exceeding expectations.
Utilizing eBay has become an integral
part of their parts sales process, knowing
what to sell direct from the yard and
what to put on eBay was one of the most
difficult areas to understand. Through
consistent leadership they have been
able to get the right Internet sales team
Fully embracing best practices and new technology, many companies are utilizing
all the options available to them to sell their products, improve efficiency,
and raise customer service standards.
together, who now have full responsibility for the company’s eBay account, and
get first choice of the parts to sell, working very hard to provide the best service
and receive the highest feedback possible from their online customers.
Customers contacting and visiting the
yard are not forgotten either. Investment
in the site has included customer parking,
well maintained customer areas, and
training for the staff in handling customers correctly, improved phone systems
that direct customers to the appropriate
department and efficient office services
add to the quality of the operation.
They have also forged a long term relationship with a Hungarian company and
have two of their workers full time in the
yard. These guys are stripping vehicles
and exporting vehicle parts to Hungary
for their own business. In many cases
these parts are not in demand in the UK
and would have ended up in the crusher so this arrangement is good for everybody.
A very strong yard management
process ensures that vehicles are processed through the business swiftly and
efficiently; from de-pollution near the
main gate, vehicles travel through the
yard as they are stripped for parts, and
finish at the top end of the yard for
crushing and onward processing. There
is even a one way system for the large
trucks taking the hulks away that
improves the efficiency of the whole
operation.
Operating from a three-acre yard, the
13 staff members process in excess of
4,000 vehicle per year – more than 300
per employee. This is a small family business is led by passionate owners who have
motivated their employees, is making a
difference to the environment, making a
difference for their customers, giving
their staff a quality working life, and setting an example for others to follow.
If you want to know more about this
company, realize your own passions for
your company, or investigate further
options for yourself and your employees
then please feel free to contact me. ■
Andy Latham is Managing Director of Salvage
Wire, a unique Auto Recycling consultancy
with a focus on Safety, Ethics, and Profitability
for all clients. With over 30 years of experience
in the automotive industry, Andy shares his knowledge, experience, and wisdom garnered as an engineer, manager,
and leader: Contact him at +44(0)7710 877411 or e-mail
[email protected].
Advice Counts
By Jim Counts
[email protected]
Self-Service and Full-Service: Is This a Viable Industry?
T
his question comes up several times a year when I’m talking to someone new. Normally,
this is a company that is struggling and wondering if there
really is a way to make a profit
recycling vehicles. I always state
that this is, in fact, a truly viable
and robust industry provided we
keep up with what’s happening
and are willing to make the
needed changes.
My goal then is to bring about
the needed discussion of where
they are now and where they
need to be. I talk about things they can
do to get the company back on track.
Because we have limited space here,
I’m only going to cover one of the situations I often encounter and business
practices which might cause you to
believe the industry has a limited future.
If you are a full-service recycler in a
market where a self-service operation
exists or opens, you’ll probably have to
change the vehicles you purchase and
services you provide. It’s almost impossible to run a profitable full-service recy-
cling operation if your primary source of
inventory is vehicles purchased off the
street and compete with the self-service
recycler.
Because the self-service business’s overhead to process a vehicle is so much less
than a full-service business, they can pay
more for the street vehicles and still sell
the parts for less than you can. This does
not mean you cannot buy any vehicles
from individuals, but you have to be a lot
more selective and be willing to purchase
wrecked vehicles from the salvaged pools.
Another by-product of having
a self-service recycler in your
market is that many of the parts
you have sold in the past will
become unprofitable to sell. The
self-service prices on parts such
as alternators, starters, compressors, steel wheels, breaking parts,
etc., are so low that you cannot
compete with them in a full-service atmosphere and make a
profit. However, buying a newer
damaged vehicle from the salvaged pools has the effect of raising the value of the same part
types because the self-service business
rarely have these later model vehicles in
their inventory.
Another consideration is that your customer base will need to change to some
degree. The vehicles which work best in
a self-service business will attract some of
your previous customers because of the
lower prices and broader selection provided in the self-service. Again the solution is buy better quality and later model
vehicles from the salvaged pools, which
normally have sellable engines and transmissions. This allows you to service more
mechanical shops and helps replace the
loss of retail sales, while at the same time
it raises the average amount your parts
sell for.
Don’t lose heart; if your business is
struggling, making a few adjustments can
have a dramatic impact on your profits.
Remember, not knowing how to solve a
problem is something everyone experiences, but failing to seek help to resolve
the problem is a serious mistake which
can have a profound impact on the
future of your business. ■
Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit
www.countsconsulting.com.
FOCUS ON WARRANTIES
Badge: iStock.com/nyengendadi
THE REAL
WOW
FACTOR
A
warranty program
done right can be
extremely advantageous to your business,” said John Fischl,
Owner of Riteway Auto
Parts in Phoenix, Arizona. “Without a
doubt, warranties have changed the way
we do business. They have become the
foundation of our business. They have
helped to elevate the image of auto
recycling and recycled parts in the
mind of consumers and given us a competitive edge in our business.”
According to Fischl, who is an active member of
Team PRP and ARA, Benny Cunningham, of
Cunningham Brothers Auto in Virginia, was the
one who educated the Team PRP members on the
benefits of offering warranties, over ten years ago.
Many of them went home and started offering
warranties. The results they had were impressive
and the warranty program started to develop.
Warranties provide the “wow”
in customer satisfaction on
your sales and offer companies
a competitive edge.
B Y M I C H E L L E K E A D L E - TAY L O R
Today, Team PRP (Premium Recycled Parts)
offers two different warranty programs; the professional repairer warranty and the consumer warranty.
The professional warranty is offered for collision
and mechanical repairers on insurance paid claims.
It’s called the “Team PRP Coast to Coast Limited
Warranty” and offers a lifetime warranty against
corrosion perforation on body parts. For mechanical and electrical parts it offers a minimum of six
months unlimited mileage, parts and labor coverage, with labor paid at up to $50 per hour.
The consumer warranty offers a minimum of 90
days for replacement parts. The vast majority of PRP
members offer extended warranties that go beyond
iStock.com/tuk69tuk
FOCUS ON WARRANTIES
“If I provide an extended
warranty, then our repairer
customers come to expect it
on every purchase and that’s
a good thing because it gives
us a competitive edge.” – John Fischl
the PRP base warranty program. One or two years, or
even lifetime coverage, are options to enhance the
basic warranty on mechanical and electrical parts.
“I haven’t been able to find a better warranty program anywhere,” said Avi Pelc, Interim Executive
Director for Team PRP. “It’s even better than what the
OEMs offer on mechanical or electrical parts. And
many of our partners offer lifetime warranties with no
mileage limits. Team PRP members have found it
makes their businesses even more competitive.”
“If I provide an extended warranty, then our repairer customers come to expect it on every purchase
and that’s a good thing because it gives us a competitive edge,” said Fischl. “For example, we will not sell
a part to a mechanical or collision repair shop
without an extended warranty. Only under duress,
maybe less than 10% of the time, will we sell a part to
them without the extended warranty and that would
be when they absolutely have to have the part for less.
“The extended warranties are a win-win for the
recycler. They provide a revenue stream for us, and
instill confidence in the mind of the repairer and
their customer who has to make the decision on
whether or not to use a recycled part.
“Over the years, we’ve marketed Team PRP and
our great warranties to the collision repairers in our
market and that has dramatically increased our market share.”
Kosiski Auto Parts, in Omaha, Nebraska is another
example of a PRP and ARA member who offers an
extended warranty program that goes above and
beyond the base program. They offer an extended
parts and labor warranty that is available at an additional cost. They also offer an additional one year
warranty for parts only, or for parts and labor, and a
two year warranty for parts, or for parts and labor.
They also offer a lifetime warranty on all parts,
excluding motors/transmissions.
At Kosiski Auto Parts, if a customer spends up to
$1,000 for a part, he or she can buy an extended
one-year parts-only warranty for $100. If the customer
spends between $1,000 and $2,000 on a part, a oneyear extended parts-only warranty would cost $200.
Parts that cost between $2,000 and $3,000 would be
$300 to buy an extended one-year parts-only warranty,
and so on.
The Kosiski Auto Parts two-year warranty looks like
this: For parts that cost
0-$1,000 = $150 to purchase warranty
$1,000-$2,000 = $300 to purchase warranty
$2,000-$3,000 = $450 to purchase warranty
$3,000-$4,000 = $600 and to purchase warranty, etc.
Every one hundred dollars buys the customer five
hundred dollars’ worth of labor coverage.
Gary Pinneo, Sales Manager, Kosiski Auto Parts,
says that re-adjusting their warranty program has
really helped their business.
“A little over a year ago, we re-adjusted our warranties to our current program,” said Pinneo. “We
previously used a yard management system program
that gave us a percentage of the cost of the part for
our warranty cost. The problem with that program
was that the numbers would get so high on some
items and we were basically selling warranties on the
cheaper items and it didn’t make any sense financially.
“Now that we are using our
current warranty program,
we have seen our warranty
sales doubling over a six
month period and are able
to set goals.” – Gary Pinneo
“Now that we are using our current warranty program, we have seen our warranty sales double over a
six month period, ” said Pinneo. “And, we are able
to set goals. Currently, we are pushing each sales professional to sell five hundred dollars a day in warranties. It has also helped us so we don’t have to
discount parts as much because the warranties have
built value into our parts.”
Kosiski’s lifetime warranty is based on 50% of the
cost of the part. For example, if an alternator costs
$50, they can sell it for $75 with a lifetime warranty.
Pinneo says the warranty allows sales staff to guide
the customer to making the best choice overall.
“All repair shops want the extended parts and
labor coverage, and they automatically expect you to
pay them when there is a problem; so you might as
well sell it to them,” he said. “Selling extended warranties not only adds to your bottom line, it puts confidence into your customers financial purchase.”
Another auto recycler, John Griffin, General
Manager, American Auto Parts, Omaha, Nebraska,
says they tried multiple ways to sell warranties before
developing the current successful model.
“We tried many different ways to get it through our
peoples’ heads to sell warranties, with little to no success,” said Griffin. “Then, we stopped to ask ourselves
why it was proving so difficult to get them to sell the
warranties. The answer was we weren’t allowing
them any voice or involvement in establishing them.
“We decided to let it become their idea. We found
we had better results when we let our sales people
get involved in the decision-making process of what
the warranty looks like; i.e. what it should be, how it
should be priced, and what it should be offered on.
“This eliminates the need for an excuse on why is
doesn’t get offered. When they get to be part of the
decision and they have invested their input, it gives
iStock.com/Mazirama
FOCUS ON WARRANTIES
them more confidence to offer
“The warranty program has
the warranty. The more it’s offered,
improved our business in two ways,”
the more it’s going to be sold. The
said Griffin. “First of all, it has
majority of the time you’re going
improved customer satisfaction and
to take care of the customer anysecondly it has increased our sales.
way. You might as well charge for it
In the event of a part failure, the
and train your people to offer it.”
customer is satisfied because he or
Griffin says they began incentivizshe has a warranty and the problem
ing their Parts Sales Team on part
is easy to fix. It makes for a good
sales and warranty sales. The more
conversation compared to when
they sell of each, the more they
they don’t have a warranty.
make. This extra opportunity is
“This industry has really taken
“We found we had better
additional to their standard sales
off. We have state-of-the-art faciliresults when we let our sales ties and equipment running daily,
commissions.
“We implemented the new war- people get involved in the
so I think it’s a good idea to not
ranties because the old warranty
complicate things for the people
decision-making process of
was too complicated, not only for
that we value the most – our cusour salespeople to present but for what the warranty looks like; tomers.”
customers to understand,” said i.e. what it should be, how it
Johannes Auto Sales, Inc. in
Griffin. “We needed something that
Jackson, Missouri is another ARA
should be priced, and what it member that offers a good warranwe could just roll out that makes
sense to everyone. We feel our new should be offered on.”
ty program. Donna Johannes
warranty is black and white and – John Griffin
Schuette, Vice President, Johannes
leaves little room for confusion.”
Auto Sales, Inc. says warranties are
The warranty they offer is a standard six-month
a big part of their success. “We have been in business
part-only warranty on most items. They also offer
for 52 years and our reputation for quality parts and
added (labor coverage) or a 12-month parts and
the fact that we will stand behind our parts is a big realabor warranty. It’s based on the Alldata book time at
son for our success,” said. Schuette. “I feel our
$50 per labor hour capped at purchase price of the
warranty program is a big part of that.”
component. Then, they add a set amount depending
Johannes Auto Sales, Inc. guarantees all of its
on the part and the cost. Some examples include;
parts. It also offers a Limited Lifetime Warranty on
alternator and starters just add $10. For
many of its smaller mechanical parts such as starters,
Engines/transmissions, if a customer spends up to
alternators, most A/C compressors, steering gears,
$750 = $200 is added on; if customer spends between
wiper motors, heater motors and power steering
$750 to $1,500 = $350; and if a customer spends over
pumps. Schuette says she feels this makes them
$1,500 = $500. For example, if a customer spends
stand out of the crowd.
$850 on an engine, the added warranty would be
“I feel this has definitely given us an edge on our
$350 extra for 12 month part and labor warranty.
competition, both used and new parts dealers,” said
“I feel this has
definitely given “
us an edge on our
competition, both
used and new parts
dealers.” – Donna Johannes Schuette
Schuette. “I write and record my own radio ads and
I always stress that our Lifetime Warranty is better
than any warranty a customer could get on a new
part. Our customers hear that message and remember it. Every day we have someone walk through the
door and inquire about the warranty.
“In addition to the Lifetime Warranty on smaller
parts, we also have an excellent warranty on our used
engines and transmissions. Any engine or transmission with less than 100,000 miles carries a six month/
12,000 mile warranty and most with over 100,000
miles carry a 90-day warranty.
“We make exceptions for extremely high mileage
parts, and the engines and transmissions we ship
out, but even those will have a 30-day warranty,” says
Schuette. “Most consumers will buy one or two high
dollar engines or transmissions in their lifetime, and
we feel if we can give them a better warranty than
they expect from a salvage yard, it will make them
feel more at ease with their decision to buy from us.”
Schuette says she feels a warranty program is a benefit for any recycler.
“I definitely recommend a strong warranty program
for recyclers,” said Schuette. “Like I said, we have a
reputation already for standing behind our parts. My
father’s generation knew without a doubt that if a
part was bad, my dad would make it right. I want my
generation to know that policy still stands here at
Johannes. I think my generation wants to see it in
writing. These days it seems everyone is so busy there
is not the same amount of personal interaction with
every sale as there was 30 or 40 years ago. Many of
our customers now don’t personally know my dad or
me. They search for parts online in the evenings
when we are closed, so being able to state such an
excellent warranty program on our website and in
our ads gives them the reassurance they need to
choose our business.” ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
Strength in
Numbers
How to Stop Selling Used Parts
and Start Selling Green Recycled Parts
BY JESSICA ANDREWS
“Nothing Matches the Performance
of Original BMW Parts.”
“Don’t use just any parts to repair their pride and joy.
You know that your customers’ vehicle are important to them.
You know that only Ford Genuine Parts will keep their Ford
vehicles looking like it did when they first laid their eyes on it.
You know what parts you should by using for your Ford repairs.
Maintain the quality of their pride and joy and use only
Ford Genuine Parts for your Ford repairs.”
W
e’ve all seen it.
The big auto manufacturers touting
the “genuineness”
of their new parts.
They put plenty
of money behind the message that
their parts are the best option for the
consumer. Lucky for the auto recycler,
you are also selling the genuine thing!
It really all comes down to how are you
communicating this to your customer.
We Proudly Sell
One Word: Quality.
Volvo Genuine Parts.”
“Bump the Competition – Save Time, Save Money!
Of all the reasons to use Genuine GM Parts,
you can add unbeaten value to the list.”
How much does your business invest in marketing each month? Do you wish you had more time
to devote to marketing your product and building
your brand?
With today’s automotive repair market more
crowded than ever before in the history of the professional automotive recycling industry, one thing
is for certain – your com- Every day ARA member businesses brand has now been regispetitors certainly have not
tered and trademarked in
are coming up with creative,
stopped building their
over a dozen countries, with
innovative ways to incorporate
brands. Turn on the TV or
trademarks pending in sev®
radio, open any publication
Green Recycled Parts into their eral additional countries.
geared toward the automoThrough GRP, ARA is
company’s marketing efforts.
tive repair community, and
building a global brand synit’s filled with advertiseergy that can offer conments from competitors telling your customers
sumers a real choice to expensive new OEM parts.
how great their products are.
All ARA members can participate in the program
Your potential customers need to know that
and access a growing collection of marketing
there is an alternative to new OEM parts.
resources by visiting www.GreenRecycledParts.com.
What if there was a way to leverage the collective
Once your application is approved, you will have
marketing efforts of other ARA member businessfull access to the Green Recycled Parts® brand to
es to aggressively compete and sell your product?
supplement your efforts to market your business
There is – through the Green Recycled Parts®
and increase sales.
message. How do you compete with companies
like Ford or General Motors that have global netMaximize the Brand
works all promoting the same, consistent message?
To get the maximum benefits from GRP, you
By having one yourself – Green Recycled Parts®.
and your team will need to think differently about
The brand of the professional automotive recyyour product. When a customer calls and speaks
cling industry.
with a member of your team, does your business
sell used parts or do you sell Green Recycled Parts?
The Wisdom of Perceived Value
The customizable marketing tools available on the
Conventional wisdom says the core business of
Green Recycled Parts® website are designed to
an automotive recycler is to sell used parts. But as
help you make the most of the brand and cusmany businesses have found, consumer perception
tomize it for your unique needs.
of used parts remains unchanged despite significant
investments in marketing and community outreach.
For all of the economic and environmental advantages of selecting a used part for vehicle repair, the
term “used part” simply does not carry a positive
branding message with consumers. In 2011, ARA
launched Green Recycled Parts® as a solution to
members’ marketing needs and to provide a muchneeded brand identity for the professional automotive recycling community. Your inventory is
more than just used salvaged parts.
“Automotive recyclers in Canada had been using
the ‘Green Parts’ brand for some time,” explains
ARA CEO, Michael Wilson. “In partnership with
the Automotive Recyclers of Canada, we transitioned
‘Green Parts’ into ‘Green Recycled Parts’ and
together began promoting the brand throughout
North America.”
To educate the public, ARA debuted the consumer-oriented Green Recycled Parts® website,
www.greenrecycledparts.com, and also launched a
companion library of marketing support materials
to ARA members during 68th Annual Convention & Exposition in Charlotte, North Carolina.
Standard Auto Wreckers “Green Recycled Parts” display is just one illustration of
Since then, the Green Recycled Parts® (GRP)
how they utilize the brand.
The Green Recycled Parts® website, greenrecycledparts.com, provides consumers
with a resource to learn about the products available from ARA member businesses. It also includes a “members only” section with marketing materials to
promote your business within the brand, like a brochure and videos (insets).
Every day ARA member businesses are coming up
with creative, innovative ways to incorporate Green
Recycled Parts into their company’s marketing
efforts. Beyond the traditional print resources and
commercials, ARA members are using social media,
delivery trucks, uniforms, signage, window decals,
and more to promote the GRP brand.
“We actively use the Green Recycled Parts® logo
and philosophy at our company,” says Scott Paine,
President of Buckeye Auto Parts in Columbus,
Ohio. “We had a sign made, posted directly next to
our own logo at our sales counter and painted our
showroom green. We have the logo on our website
and show the video processes involved with automotive recycling. We think that the Green Recycled
Parts® message is a professional and clearly and simply explains what we have been trying to promote
for the last four generations at Buckeye Auto Parts.”
Online video is a popular way that consumers
research and educate themselves about a brand
and can be an effective outreach tool to reach
potential new customers. Several videos are available on the website for integration on your own
company website or social
“Customers and body
“The more we invest in the
media platform to market
shops
need to know they
Green Recycled Parts® brand,
earth-friendly recycled parts.
have an alternative to new
the more we get out of it.”
The
consumer-oriented
OEM parts,” says Mike Swift
®
Green Recycled Parts website
of Swift’s Trails End Auto
–Mike Swift, Swift’s Trails End
also gives consumers a
Recycling in Des Moines,
Auto Recycling, DesMoines, IA
resource to learn about the
Iowa. “Any time a repairer
products available from ARA member businesses,
opens up a magazine, right next to that OE ad
with clear, simples messages highlighting the
should be one for Green Recycled Parts®.
unique advantages of your products.
Anywhere you put your company’s logo, you can
also place the Green Recycled Parts® logo,” adds
Be Part of a Bigger Effort to Expand
Swift. “The more we invest in the Green Recycled
Parts brand, the more we get out of it.”
Automotive Recycling’s Global Brand
The more closely you choose to align with
Equip your business with the tools needed to
Green Recycled Parts®, the more your business will
expand business relationships and capture new
benefit from the synergies of other GRP facilities
customers. Educate, promote and support your
actively promoting and building the brand. “We
efforts with customized marketing materials to
have Green Recycled Parts® information set up in
help customers understand Green Recycled Parts®
our boardroom. We get a lot of visitors each week
and feel good about using them. Sign up today at
and we keep our GRP brochures front-and-center,”
www.GreenRecycledParts.com and be part of the
says Jay Granofsky of Standard Auto Wreckers,
bigger effort to expand the professional automotive
which operates locations in the United States and
recycling industry’s brand around the world. ■
Jessica Andrews is ARA’s Director of State & Grassroots Affairs.
Canada.
Partners in
Customer
Satisfaction
How providers of Green Recycled Parts®
are helping Collision Repairers put green
in their repairs and their pockets.
BY CARYN SMITH
A
Note to Automotive Recyclers
This article, written by Automotive Recycling magazine editor
Caryn Smith, was published in the June 2014 “Go Green
Issue” for the AutoInc. magazine, published by the Automotive
Service Association. The article can be found and shared online
at http://digital.autoinc.org/publication/?i=211767&p=22.
This is a great resource to share with your esteemed
Body Shop and Collision Repairer colleagues on the value
of Green Recycled Parts® in the repair process.
PLACE YOUR BUSINESS CARD HERE TO DISTRIBUTE COPIES.
s a busy Collision Repair
shop owner or manager,
when we say “green,”
your first thought might
be “show me the profits!” You might also think
of new procedures to reduce shop hazards or waste. Possibly the three R’s –
reduce, reuse, recycle – come to mind.
Yet, professional Automotive Recyclers
want your first thought to be “Green
Recycled Parts®.”
Just as Collision Repair professionals have focused
their efforts over the last several years on cycle
time, lean manufacturing methods, and improved
standard operation procedures – almost as a
means of survival – so have Automotive Recyclers,
your partners in repairs and providers of recycled
auto parts.
Professional Automotive Recyclers understand
the pressures that Collision Repairers experience
from insurance providers, competition, and consumers, not to mention the continual changes in
design and materials in modern automotive manufacturing. They feel the same pressures.
Most auto recyclers – especially members of the
Automotive Recyclers Association (ARA) and of
the affiliated automotive recycling chapters – are
continually looking to improve business relationships, customer service, warranties, and their own
cycle times, to ensure an efficient vehicle repair
process for the consumer.
The mandate for alternative parts to be written
into insurance estimates is a significant opportunity
for Automotive Recyclers. Yet, even with the
requirements to utilize a certain amount of recycled auto parts to fulfill monthly insurance quotas,
there is much competition among the industry for
that targeted percentage of business.
Empowerment through Partnership
Harnessing the power of synergetic relationships
with the collision repair industry is a strong focus
for members and leaders of the ARA and those in
the elite Certified Automotive Recycler (CAR) and
Gold Seal certification programs.
“When auto recyclers develop positive relationships with collision repair partners, business is a
win-win for both for many reasons. Ultimately, the
consumer wins as well, through cost-effective solutions to car repairs and the environmental stewardship benefit that Green Recycled Parts®
provide,” says ARA CEO Michael Wilson.
“We want to build unified strategic efforts with
leaders in the collision repair industry, especially
with the rise and implementation of collision
avoidance systems and autonomous vehicles,” says
Wilson. “It is critical that repairers and automotive
recyclers work together to ensure consumers have
a right to the economic and environmental benefits of recycled OEM parts. Barriers and obstacles
to recycled OEM parts reutilization must be eliminated, so that consumers who need repairs are
able to get what they need quickly and efficiently,
and still at an affordable price.”
Proven Collaboration
One of ARA’s significant industry achievements
to streamline the process was the creation of a unified standard and description of recycled auto
parts. They acknowledged that all parties estimating, listing, selling, buying, and installing recycled
auto parts needed a common language represent-
Comments from Dan Risley
EXECUTIVE DIRECTOR AND PRESIDENT
AUTOMOTIVE SERVICE ASSOCIATION
A
SA serves 5,000 members and an additional 2,000 through affiliation. Our
member’s business goals are pretty simple as it relates
to recycled parts. “Utilize readily available, cost-effective, high
quality parts that help keep repair costs and cycle times
down,” says Dan Risley, ASA’s Executive Director/President.
As for the use of recycled auto parts in repairs, Risley has a positive view of the role professional automotive recyclers play in
their industry.
“Over the last 15 years, I have seen a very genuine and positive outreach from auto recyclers who want to bridge the gap
to work effectively with repairers,” says Risley. “Recycled auto
parts are an essential part of the supply chain from all perspectives – from insurance, collision repair and mechanical.”
“The ARA Damage Codes are making a big difference to the
process, as is the ongoing education by auto recyclers on
unique items, like recycled airbags, under the ARA Airbag
Protocol. Educating themselves on the challenges and possibilities of selling certain recycled parts is key. For instance,
recycled assemblies are not as cut and dry to estimate on an
insurance claim, and reaching out to educate all industry segments on how these parts can and cannot be used will drive
usage,” he says.
Overall, the ASA and ARA have the same ultimate goal, to
benefit the consumer with excellent customer service, quality
work and product, reduced costs, and quick turnaround. The
more communication and education that can be created, both
recycler to repairer, and organization to organization, the more
both industries will advance into the future successfully. ■
Excerpt from the March-April 2014 issue of the Automotive Recycling magazine.
ed by this standard. The old variances in language
from company to company and industry to industry made it very hard to meet increasing customer
expectations.
The ARA Recycled Parts Standards & Codes,
developed within the ARA Interchange Committee, in collaboration with parties interested in recycled automotive parts, interchange standards, and
recycling, and with direction from the Collision
Industry Electronic Commerce Association, was
officially approved in 1998. Now there is a way for
quick and accurate communication about recycled
auto parts. Support materials that followed the
standard include the ARA Code of Ethics, Damage
Locator for all standard car parts, ARA Wheel
Grading Protcol, Airbag Protocol, and ARA Parts
Definition Standards.
Fast forward to today, we have come a long way
and now it is included in all parts search databases,
and is representative of the way Automotive
Recyclers describe their parts online. This example
demonstrates how ARA proactively united to help
the collision repair industry in efficiency.
We Proudly Sell
The New Used
Several years ago, ARA saw the opportunity to
rebrand “used” auto parts to represent the truth
about them. As collision repairers know, automotive recycling businesses are guided by the strictest
environmental and professional regulations that
are often intrusive to doing business. Yet, they prevail to become premier businesses in their communities.
As the oldest recycling industry in the world,
professional Automotive Recyclers wanted to show
consumers, regulators, politicians, and industry
partners the real value of recycled OEM auto
parts as a $22 billion dollar earth-friendly industry.
Building upon the program’s momentum initiated
by the Automotive Recyclers of Canada, ARA
developed the Green Recycled Parts® (GRP)
brand that has now gone global as a registered
trademark and the embodiment of recycled auto
parts.
Why do collision repairers need to know about
this?
ARA Resources – Recycled Parts Standards
ARA’s website, www.a-r-a.org, provides complete information
to understand the common parts code language for
communication between insurance, repair, and recycling
professionals.
Go to www.a-r-a.org/content.asp?pl=453&contentid=453
for information.
The PDF documents are available for download at no charge,
and include:
ARA Grading Standards, Codes & Protocols
• ARA Code of Ethics (PDF)
• ARA Standards & Codes Brochure (PDF)
• Damage Locator (PDF)
• ARA Wheel Grading Protocol (PDF)
• Airbag Protocol (courtesy of ARA Product Services, LLC)
• ARA Parts Definition Standards (ppt)
• ARA Recycled Parts Guide
• I-Car Cut Lines (2007)
For information on CAR and Gold Seal programs,
visit www.a-r-a.org/content.asp?contentid=755.
The GRP brand provides your customer assurance
about “used” auto parts in a repair. Customer
service teams can emphasize the smart environmental solution of Green Recycled Parts®, along
with related cost-savings – and even with warranties
just as any other parts in the repair.
After all, the consumer’s vehicle is already full of
used parts; once off the new car lot, a vehicle is
considered used. There is nothing different about
Green Recycled Parts® than what they already
have in their car, except that these parts have been
inspected, cleaned, and shipped with care to the
collision repairer.
Gold Seal & Certified Auto Recyclers
ARA offers two member programs that certify
efforts in environmental compliance, safety, customer service, and more.
The ARA Gold Seal program, available only to
those ARA members who have completed CAR
certification, ensures excellence in customer satisfaction through improved customer service, quality
parts with accurate descriptions, reliable on-time
deliveries, and written product warranties.
The Gold Seal program leads the automotive
recycling industry by creating an environment dedicated to outstanding customer service. Gold Seal
customer service goals are based on the highest
professional and ethical business practices established and adhered to by “Best in Class” recyclers.
Feed back received through customer service
inquiries, business analysis, and adherence to Gold
Seal standards demonstrate that a Gold Seal mem-
ber’s performance continues to meet or exceed
the expectations of their customers.
Established by ARA with an endorsement from
the Automotive Service Association (ASA), the
program allows recyclers to join forces to take a
proactive stance to improve quality and increase
customer satisfaction.
The Certified Automotive Recycler (CAR) program was created to produce a set of standards for
general business practices as well as environmental
and safety issues and to provide guidance for
member facilities in adhering to these standards.
This program is one of the cornerstones of ARA as
the facilities participating strive to provide quality
service and parts for the professional automotive
recycling industry.
As you build relationships with professional
automotive recyclers, consider companies with
these certifications to be among the cutting-edge.
Gold Seal is all about making sure your customers
are completely satisfied with no surprises on delivery.
Gold Seal, while holding the auto recycler accountable to their customers through tools like the CSI
program, is really about creating a service and
quality culture within your organization,” says Shulz.
“The GRP program is a great tool to help auto
recyclers portray their parts in a little different light.
I can’t tell you how many times I had someone at
our facility say, ‘This isn’t anything like what my dad
used to bring me to when I was a kid.’ That statement being said by someone in their 40s or 50s says
to me that we there is still room for improving our
image,” says Shulz.
Work Together Better
Positioned for Partnership
Gold Seal ARA Member Eric Shulz, AAA Auto
Salvage, Inc., a full-service auto recycler in
Rosemount, MN, says that relationships with his collision repair partners have improved as he and his
team strive for excellence. “Roughly 65 percent of
our business is collision related,” says Shulz.
AAA Auto Salvage is a participant in the CAR,
Gold Seal, and Green Recycled Parts® programs.
Shulz also serves as Chairman of the ARA Gold Seal
Committee.
“The CAR program is what pushed us along the
right path for safety and environmental compliance.
It builds a solid foundation so that you can work on
creating an excellent customer experience, too.
“Leadership, productive business relationships,
strong values, and a forward thinking management
team are the qualities that will propel the automotive recycling business into the future,” says Ed
MacDonald, Maritime Auto Salvage, Ltd., Truro,
NS Canada and ARA Past President. “Now, more
than ever, it is the product quality, professional
service, and dedication to the client that will be
the defining factors of success in business. And as
an industry, we are certainly dedicated in serving
our Collision Repair partners.”
The more both industries communicate their
needs, the better business will be for both. “A
mutual understanding of each other’s industries
can go a long way to improving communications
and meeting customer expectations. Training collaboration undoubtedly results in industry educational training tools,” says Virgina Whelan, Executive
Director of the ARA Educational Foundation and
founder of the ARA University. The ARA University
platform provides over 6,000 automotive recycling
employees with education and training for increased
job performance.
“Ultimately,” says Wilson, “Professional Automotive Recyclers want to ensure an efficient vehicle
repair process for the consumer and are committed
to continue to build successful business models for
the future of both industries.” ■
Reaffirming the Use of
Green Recycled Parts®
Key reasons to be proud to use recycled OEM
auto parts provided by professional automotive
recyclers are:
• Cost-effectiveness of Green Recycled Parts®
• Environmental benefit (for use in marketing
and customer communications)
• Industry dedication to timeliness of delivery
parts from door to door
• Delivery of parts as promised, with accurate
descriptions
• Certified Automotive Recyclers and Gold
Seal companies as Best-in-Class providers of
Green Recycled Parts® bring peace of mind
and certified customer service experiences to
the table.
The more both industries
communicate their needs,
the better business will be for both.
Caryn Smith is editor of Automotive Recycling magazine. This article
was reprinted from the “Go Green Issue” in June 2014 AutoInc. magazine,
published by the Automotive Service Association. It is available online
at http://digital.autoinc.org/publication/?i=211767&p=22.
INTERNET COMMERCE
eBay It’sin theAll
101... Post
A
utomobiles are the most
recycled item in the
United States, with over
80 percent of materials
by weight usually being
recyclable1. With so
much of a vehicle available to put back
into production, auto recyclers can distribute thousands of parts at once out of
their inventory.
In a digital world, such a marketplace exists to
sell parts far, wide and in high volume. The problem is, not enough recyclers think they can make
a splash in the water, or they don’t have time to figure out a new sales method.
The fact is eBay is loaded with opportunities for
businesses of any size to tap into new and unexplored markets.
With eBay Motors, auto recyclers have finally
found new hot spots for their parts, and buyers
they’d never have known existed. As of Q2 2014
the sub-category of the wildly successful consumerto-consumer online marketplace was responsible
for 392 million part transactions, with an average
of two parts being sold per second, and 46 million
parts still waiting to be sold. The real beauty of the
marketplace though, is that a seller doesn’t need
size to sell a lot of parts, just the right sales model.
For some, eBay is a mystery.
For others, it is a portal to
some sweet added sales.
Here are tips to hitting your
target markets within eBay.
B Y S C O T T R YA N
“I’m the mom and pop store trying to compete
against WalMart,” Dale Bowman of Burnside Auto
Repair and Electric in Portland, Ore. said. “It’s not
just for the big boys, it’s for us too. It’s added an
extra month to our year in (gross) sales.”
Selling parts isn’t as easy as tossing inventory
online and getting the customer to bite. But it also
isn’t a complex formula. Being successful on eBay
is as simple as being patient with customers,
paying attention to detail and putting the required
amount of time and effort into making an aesthetically pleasing profile and listing.
Adhering to these sometimes minor but always
important details helps boost eBay’s coveted metric:
The seller rating. This is where users leave feedback
on product quality and the efficiency of delivery
and execution of the seller. Good feedback is an
essential part of the eBay selling process as it helps
build or degrade a seller profile, which is paramount for continued sales.
iStock.com/jauhari1
Using interviews from three small to mid-sized
auto recyclers like Bowman, this article explores
proven practices that can improve sales and seller
ratings. These inventories and yards aren’t the
biggest on the block, but it matters little when buyers head to their page and see they are a trusted,
consistent seller who delivers the right part on
time. While there is no equation for the perfect
profile, there can certainly be guidelines, and
these are simple guidelines every recycler should
heed to online to increase sales.
A Picture is Worth a Thousand Sales
Although adding images is by no means the first
step to listing on eBay, it needs mentioning early
and often that it is doubtless the most important
aspect of converting a sale.
“People online like photos. They’re high touch
consumers and will have questions,” Mary
Hubbard, program manager at eBay said.
A picture (or 12) can resolve many of the issues
customers can face with buying a specific part
without first seeing it in person. Pictures should
detail every possible angle of the part, as getting
certain details such as cast number or model number help avoid customer confusion, and therefore
prevent the buyer from having to ask the seller for
it, or simply moving on to a seller that does
provide the essential information.
Shane Rudd, internet marketer for Elite Auto in
Long Lake, Minn. says that photos of the automobile, not just the part that came off it, can also aid
in customer security. “You sell tons of parts if you
have a picture of the donor car,” Rudd said.
And although it’s an established truth that
images help sell online, knowing how many images
INTERNET COMMERCE
Hollander and eBay
This article was written for auto recyclers on behalf of Hollander LLC. Hollander is a leading
software provider in the United States for automotive recycling. An exclusive relationship between Hollander and eBay Motors has now accounted for $45 million in sales in 20132 for automotive recyclers across North America. The relationship allows Hollander customers to list their
inventories – which can include thousands of parts – to eBay. As part of the relationship, eBay
motors runs targeted marketing campaigns to drive buyers to highlighted landing pages to buy
recyclers’ “Second Life Parts.”
“Hollander’s collaboration with eBay has expanded the market for our customers’ product exponentially,” Anders Moeller, managing director of Hollander said. “It takes them from selling locally to their neighbors, to securing sales across the country, and even around the world to
customers they otherwise would never have been able to reach.”
to use for a particular part can help save time
while still getting the correct amount of detail.
“Each part is different,” Bruce Zimmerly from
Hi Tech Auto Body and Paint in Buda, Tex. said “If
we’re selling a complete interior we’ll use as many
pictures as we can utilize. An engine computer
almost always has four pictures: Top, bottom,
engine and plug. An alternator you can sell with
one picture.”
Customer Still Comes First
Making sure a customer knows exactly what
they’re buying is the most important rule for the
seller. Images will help this the most, but effective
and accurate communication creates clarity in listings and therefore purges doubts and questions
about the particular part.
“I think one of the reasons we do well on eBay is
because when customers click on the listing it’s
accurate in describing what they’re looking at,”
Zimmerly said.
Zimmerly started by doing handwritten ads for
each item, and so treats every listing as if there
could be human error. He is always double checking his listings to ensure factual accuracy. It takes a
little more time, but can also be the difference
between not just one part sale, but keeping or losing a customer.
And keeping customers online helps spur business
offline. According to Hubbard, for every part sold
online, yard owners can get extra sales in their
store.
“People that have gotten good parts from me
will contact me again before going online and
buying,” Rudd said.
And despite being online, users still demand a
high level of personal customer service, so staying
on top of incoming questions via telephone and
email can make or break a sale no matter how
well-detailed the listing. Proactivity on the side of
the seller also helps convert sales and produce
trust.
“There’s always someone emailing you about
something they see on there,” Bowman said.
“Sometimes there’s more than one option and we
want to make sure they’ve ordered the right one.
I want to make sure I send the right thing.”
Be Clear on Policies
People like to know who they’re buying from.
An eBay profile tells how satisfied other users are
when they buy from a seller, but the seller can also
provide information about their company to familiarize their customers and help build a reputation
among users.
eBay recommends other techniques to keep
policies simple. According to Hubbard, this is
because, “The issue sellers run into most is not setting correct expectations.”
So in order to get realistic expectations set, eBay
recommends: A generous return policy, including
hassle-free returns and extended return windows;
clearly specifying terms and conditions in the user
template, such as shipping and handling information, shipping cost, forms of payment and relevant
taxes; and giving realistic expectations on arrival
times.
The shipping process is one of the most complex
for the seller. It means factoring in costs, weight
and distance for each individual item.
Bowman’s advice? Keep shipping free for customers and get a system. Flat rate boxes from the
eBay Best Practices, Top 10
1.
Make sure the listing has the proper
amount and right kind of images
2. Accurate and detailed Listings
3. Free or reasonable shipping
4. Perform follow-ups with customers to
ensure they know what they’re getting
5. Develop relationships with consistent
buyers
6. Have clear and detailed return and
shipping policies
7. Maintain a high seller rating for
increased sales
8. Find creative ways to customize your
template and policies
9. Set realistic expectations with
customers
10. Don’t let the size of the yard prevent you
from taking advantage of the platform
“The issue sellers run into most is
not setting correct expectations.”
– Mary Hubbard
post office can fit many smaller parts, and have a
fixed shipping rate; therefore he knows the
markup of not the part, but the box it will be
used to ship in. This helps him save time when
getting his parts out the door. Bigger items can
be trickier, but Bowman says, “It’s kind of a trial
and error thing you’ve got to learn.” Once a certain amount of a larger item has shipped, the
process can be done in a more timely fashion.
Creative users like Rudd have found ways to
make more direct sales. His policy dictates that
using the “Buy It Now” feature gives customers a
better warranty. This means that instead of bantering back and forth on offers or waiting on an
auction, customers can get a an extended war-
INTERNET COMMERCE
“People that have gotten good parts
from me will contact me again before
going online and buying.” – Shane Rudd
ranty to buy the part instantly, saving Rudd time
and giving the customer more security. Policy is
individual, and finding ways to make life easier
are not boxed in to one method.
Practice Makes Profit
Playing the game is the first and most important
step towards benefitting from it. Taking the first
step towards success online requires signing up,
creating a template, structuring policies and staying
consistent in maintaining a profile. The most successful yards are constantly updating listings to
match their inventory, answering customer questions and tinkering with practices until they find
their niche.
“The only ones I know that are (on eBay) are the
larger yards,” Rudd said. “I’m smaller than those
guys; I only do 200 cars a year. (But) I want this to
be my primary ordeal; it’s 10 percent of my sales.”
Rudd’s persistence with customer questions and
concerns along with a sky-high seller rating (99.2
percent positive) have helped him become a power
seller – meaning sustaining a gross trading volume
above a set cutoff for several months in a row.
Not only has Zimmerly’s sales increased, he now
carries more inventory, and says that of all the
online channels he utilizes, the platform provided
by eBay just gives yard owners the best chance at
making sales.
“eBay, because of reviews and feedback, is probably more efficient for the customer to buy something. (It’s) the most efficient platform.”
Being efficient on the platform doesn’t mean
writing code or being a master salesperson, it just
takes knowing the customer and knowing the
products, and letting the simplicity of online shopping take care of the rest. ■
Scott Ryan is a marketing analyst in the Hollander marketing department.
1. http://oara.com/green-recycled-parts/good-for-the-earth/
2. Data according to 2013 Hollander sales records
SECURING YOUR YARD
To Catch a
Thief
Utilizing innovations in security at
your premises can actually increase
your revenues. Here’s how!
F
or many auto recyclers, their
business is not just a business,
it’s their baby. They have nurtured it through sweat and
tears, and lots of hard work.
They’ve watched it grow from
a fledgling business of one or two employees to a thriving business with multi-locations and over 20 employees. For some,
they have grown it alongside parents and
grandparents, and helped bring it into
today’s technology-driven marketplace.
So, when theft occurs, it is not something that is
taken lightly. It not only hurts the business, but it
emotionally feels like an attack.
A recent study conducted by the American Society
for Industrial Security (ASIS) International and the
Institute of Finance and Management (IOFM) found
that the total market for security goods and services
in the United States is estimated at greater than $350
billion, with the private sector spending at $281.61
billion, and the federal government at $68.9 billion.
What this means is the private sector is spending
four times more than the federal government on
security equipment.
Most recyclers have taken some measure to prevent
theft, but often this isn’t enough and the bottom line
of the business is adversely affected when theft
occurs. It’s up to you, the recycler, to decide how to
best protect your company from theft and what combination of security systems would be best for you.
To bring awareness of what is possible, we interview
two ARA associate members who both serve our
industry specifically and offer the latest in security
options. Each has its own approach and view to
attacking the problem of theft and has demonstrated
success in its field, with high endorsements from
their customers.
While they have different approaches, both of
these companies agree on two basic things:
1) Putting a basic fence around your property is a
good first step, and 2) most of the time, a basic fence
will not be enough to stop today’s cunning thieves.
iStock.com/Creative_Outlet
B Y M I C H E L L E K E A D L E - TAY L O R
SECURING YOUR YARD
EyeMax Security
“M
Vumii Thermal camera systems (inset, and on pole) rely on the infrared energy emitted by all objects to create an image that contrasts warmer objects within a cooler background. Because it does
not rely on visible light, this type of imaging provides superb contrast irrespective of the lighting conditions.
any times auto recyclers don’t realize the
extent of the theft that is occurring on their
properties until they install a security system and suddenly see their revenues increase, for no other reason
than theft is being prevented,” said Bob Stanley,
CEO, EyeMax Security. EyeMax Security is a technology-driven company dedicated to providing video
surveillance and security guard surveillance protection
to automotive dealerships, recyclers, and automotive
salvage yards, nationwide.
According to Stanley, there are common problems
that recyclers face when it comes to theft. First of all,
most recyclers are dealing with a totally dark environment, often with many acres, and all kinds of
ways that people can steal from them. Secondly, he
says it is common for people to hide in vehicles until
the recycler closes or to find ways to get into the
premises after hours to steal parts.
“While these are common problems that recyclers
face, there are also common ways that many attempt
to prevent theft,” said Stanley. He points out that the
difficulty with many of the products currently in use
is that they are outdated and ineffective, and cause
issues like false alarms where managers receive calls
in the middle of the night. “Eventually, the managers
ignore the calls,” says Stanley. Furthermore, if the
police come to the premise to answer a false alarm,
the customer can be billed for it.
“Recyclers use security guards and/or guard dogs,
but thieves have figured out ways to avoid the
security guards and a guard dog can easily be bought
off with a large piece of meat. On-site guards can be
expensive and guard dogs can be a liability,” says
Stanley. “Another common way to prevent theft is by
installing cameras. While they have value during the
day, cameras often produce grainy images at night
when most of the theft occurs.”
EyeMax Security, which was established 15 years
ago, offers auto salvage yards security solutions by
offering convenient and cost-effective video surveillance systems and video surveillance services. Through
advanced technology, including thermal cameras for
totally dark facilities, its remote video surveillance
center is instantly made aware of any activity on a customer’s property and its trained security guards monitor the situation and advise any intruders immediately
that they are under surveillance.
They continue to monitor the situation until the
intruders have left the property or, if needed, notify
the local authorities to take action. Stanley says the
Surveillance video from EyeMax Security’s cameras catch a thief at
an auto recycling yard throwing stolen items over a fence. The police arrived shortly after.
thermal radar cameras have helped clients to reduce
theft and increase revenues.
“Our thermal cameras are mounted on a telephone
pole and turn 360 degrees to detect the heat coming
off a person,” said Stanley. “It detects body heat and
enables EyeMax Security Guards to literally see
intruders in total darkness.”
“They quickly allow us to identify where the intruder
is and to alert police. One of our clients in Chicago
didn’t realize theft was such a big problem until we
put 10 people in jail in one month for stealing from
their salvage yard. With the arrests, the owner saw a
corresponding increase in their revenue. In another
location in Colorado, our security system helped prevent theft and put 20 people in jail in a year.
“Obviously there is a human side to this and I
don’t enjoy putting people in jail. But, I do enjoy
helping my clients to protect their business and
watching their revenues go up.”
EyeMax Security installs both traditional cameras
and thermal cameras, and custom tailors a surveillance system based on each recycler’s needs.
“We never install the same system twice,” said
Stanley. “We pride ourselves on being innovators in
the technology arena and therefore stay current on
the latest trends. Systems change because technology
changes so fast. We come up with the right solution
for each recycler based on their needs and budget.”
According to Stanley, some of the advantages of
using the EyeMax Security Systems include:
• Stop theft and vandalism before it occurs.
• Involve law enforcement immediately when
appropriate.
• Most cost effective solution for security.
• Management is advised of all security threats on
a daily basis via email.
• Management can use the cameras during operating hours to improve management practices.
• Included mobile app allows dealership personnel
to monitor cameras 24/7/365.
EyeMax also offers a specially-designed thermal
energy fire detection camera that detects smoke and
fire and alerts the surveillance center. EyeMax
Security Guards then directly contact the fire department. This allows the fire department to arrive faster
and to prevent the fire from spreading quickly.
EyeMax also plans to introduce another innovation
in 2015 that uses thermal radar cameras. Stanley says
this will be the most effective solution for protecting
both the exterior and interior of recyclers’ yards.
“We are currently taking security equipment that is
used by the military and border guards and commercializing it,” said Stanley. “The thermal radar cameras
can scan the yard by turning 360 degrees in about
five seconds, constantly scanning the yard. I really
feel this is the best solution for protecting the yard
inventory and we can install IP cameras to protect
the interior facilities.”
As an additional bonus for ARA members, Stanley
is giving a free personal thermal device that you can
put on your iPhone to members who signed up for a
system at the convention. The device can be used for
personal protection when facing an intruder by
detecting body heat up to 300 feet in front of it which
helps to locate the intruder where they are hiding.
EyeMax believes in protecting its customers, including their identity, especially where arrests have
occurred. One customer in Phoenix, AZ tells of their
increased profits. “I own and manage a fifteen acre
auto salvage yard. EyeMax Security has been providing Security Guard Surveillance for my facility for
five years and I couldn’t be happier. Since EyeMax
took over, they have participated in multiple arrests
and my profits are way up. I have recently expanded
my yard and EyeMax is installing a thermal camera
that can see in the dark. EyeMax Security is a valuable
partner with me in running my auto salvage yard.”
Electric Guard Dog
T
he Electric Guard Dog is a multi-layered, solarpowered, perimeter security systems solution. It
provides a physical deterrent with a free-standing, 10
ft. tall electric security fence that is installed inside
the customer’s existing fence. One valuable feature
is that it also features multi-lingual warning signs to
deter would be criminals. It operates on a pulsed
shock system that issues a safe but memorable shock
every 1.3 seconds upon contact, making it difficult to
climb or cut.
Jack DeMao, the company’s CEO, agrees that the
nature of auto recycling often makes it hard to
detect theft easily.
SECURING YOUR YARD
“Auto recyclers, like all recyclers, store products
outside,” said DeMao. “As a result, their most valuable
commodities – like catalytic converters – are visible
eye-candy for thieves who aren’t swayed by the presence of security cameras or alarms. They get in and
out of a recycling yard unnoticed because it’s so big
and there are plenty of places to hide. Conversely,
our warning signs alone tend to dampen a thief’s
enthusiasm.”
In fact, Electric Guard Dog’s history comes out of
the very same issue that it now attacks head first. In the
1970s, Bill Mullis, who became the founder of Electric
Guard Dog, owned and operated a guard dog company in Columbia S.C. He, himself, became a victim of
theft and as a result of that theft, developed and
patented Electric Guard
Dog fence in 1991. He felt
that the solar-powered electric security fence provided
such good security 365 days
a year that the guard dogs
were eventually phased out,
and the company became
Electric Guard Dog.
Mullis retired in 2007, and the company was purchased by private investors, with Jack DeMao hired as
President and CEO. DeMao has since developed a
nationwide network of technical support staff and
outside sales representatives, with his philosophy
being “so customers can enjoy face time with their
security partner, no matter where they’re located.”
“It is our mission to stop crime before it happens,”
said DeMao. “We are the number one deterrent service in the country. Our flagship product, the Electric
Guard Dog, provides incomparable theft deterrence
for the automotive recycling industry because it provides yard security. With our electric fence based
security system, clients receive true theft deterrence:
a full 95% of our customers say goodbye to external
theft issues after installation.
“We are our customer’s security partner,
and we take our responsibility seriously by
employing the largest field technician and
customer service team dedicated to electric
security fences in the U.S. We are now integrating new technologies into our world-class
system to create new, innovative and cost-saving solutions for our customers’ problems.”
In a 2010 independent survey, 95% of Electric
Guard Dog customers stated they’ve had no
external theft since installing The Electric
Guard Dog electric security fence system. The
remaining 5% said the company had helped to
reduce theft overall on their site.
“We have three layers to our system,” said
DeMao. “The free standing fence itself is
daunting to potential thieves
because it’s ten feet tall and has
yellow warning signs about the
7,000 volt electricity. This takes
care of 95% of the work that the
security system sets out to do as a
deterrent to crime. The next layer
of security is the shock deterrent
and the third layer is the alarms
going off and the customer being
notified. We are able to check the
entire perimeter every 1.3 seconds, and because it’s solar-powered it never goes down, even
when the electricity goes out.
In a 2010 independent survey, 95% of Electric Guard Dog customers stated they’ve
had no external theft since installing The
Electric Guard Dog electric security fence
system.
“For example, when Hurricane Sandy hit New
York, looters took it as a holiday spree because security systems were down due to the power outages.
Our systems kept on working thanks to being solarpowered.”
According to DeMao the advantages of the Electric
Guard Dog security system include:
• Free installation and technical maintenance
• Customizing each fence around property lines,
terrain, and building positions.
• Heavy-duty wiring: 20 durable wires /steel and
fiberglass frame.
• Multi-lingual warning signs
• Solar-powered: Your electric bills never increase,
yet your security is always on, even in the event of
a power failure.
• Detection alarm: Scaling or cutting will trigger
an audible alarm.
• 24-hour monitoring
• Low false alarm rates
• Nationwide network of skilled technicians, for
troubleshooting at no extra cost.
Mark Gluschenko, Manager, Auto and Scrap
Recyclers, says that he has been very happy with the
Electric Guard Dog and has already seen it pay off.
“We have five properties in Wisconsin, and before
installing the Electric Guard Dog fence, we had
people trying to steal from us on a weekly basis at
one location,” said Gluschenko. “Since installing
the fence we have no more thefts. Most of the time
the appearance of the Electric Guard Dog fence is
enough to scare off potential thieves, but we even
saw how it really worked in case someone tries to
get in. We had a case where someone was trying to
get in and the alarm sounded and we were able to
catch them. People can’t throw things like radiators
or other parts over the fence without getting
caught.
“I feel like it’s a worthwhile investment because we
invest a lot into our business – it’s a big business. It
makes sense to protect it.” ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
The content of this article is informational only and should not be construed as an endorsement of any company mentioned herein or any other company or technology in the
marketplace from the Automotive Recyclers Association.
Certified News
Approved Gold Seal Participants
Company
A & P Auto Parts, Inc.
A-1 Auto Recyclers
AAA Auto Salvage, Inc.
ABC Auto Parts & Sales, Inc.
Albuquerque Foreign Auto Parts
Algar, Inc. dba Grade A Auto Parts
All Auto Parts Co.
All Foreign & Domestic Used Auto Parts, Inc.
Al’s Auto Parts, Inc.
American and Import Auto Parts
American Auto Recycling
Automotive Parts Solutions
B & B Auto Parts & Salvage, Inc.
B & B Auto Salvage, Inc. - PRP
B & M Auto Sales & Parts, Inc.
B & R Auto Wrecking
B Auto Parts
Badger Motors
Baird’s Auto Parts, Inc.
Bay Auto Parts
Bessler Auto Parts
Bionic Auto Parts & Sales, Inc.
Bishop’s Used Auto Parts, Inc.
Blenkhorn’s Auto Recyclers, Ltd.
Bow Auto Salvage, Inc.
Brothers Auto Salvage Yard, Inc.
Brown’s Auto Salvage
Butler Auto Recycling, Inc.
BW Auto Dismantlers, Inc.
C & H Salvage Corp.
Calumet Auto Salvage, Inc.
Carcone’s Auto Recycling
Cash n Carry Pull-Your-Part
Central Auto Recycling, Inc.
Centre De Recyclage Universel (1981) Ltee.
Chuck’s Auto Salvage, Inc.
Cocoa Auto Salvage, Inc.
Columbia Auto Parts
Cookstown Auto Centre, Ltd.
County Line Auto Parts
Cousineau Auto Parts, Inc.
D. A. Auto Parts, Ltd.
Decatur Auto Parts, Inc.
Denton County Auto Salvage
Diamond Auto Parts
Don’s Automotive Mall, Inc.
Eiss Brothers Auto Parts, Inc.
Elmer’s Auto, Inc.
Erie Vo-Vo, Inc.
FAB Recycling Ltd.
Foreign Auto Salvage
Fox Auto Parts, Inc.
G & R Auto Parts, Inc.
Goyette’s, Inc.
Grassy Auto Parts, Inc.
Grimes Truck & Auto Parts, LLC
H & H Auto Parts & Salvage, Inc.
Hanser’s Automotive & Wrecker Company
Hickman Motors, Inc.
Highway 54 Salvage, Inc.
J & R Truck Parts
J.C. Auto & Truck Parts
Jantz’s Yard 4 Automotive, Inc.
Jerry Brown Auto Parts Center, Ltd.
Jerry Carney & Sons, Inc.
Junior Sinn Auto Parts, LLC
Kadinger’s II
Kadinger’s, Inc.
Kadinger’s, Inc.
Kelly Auto Parts
Kirchhayn Auto Salvage, Inc.
Kosiski Auto Parts, Inc.
Lacy Auto Parts, Inc.
City
Cicero
Rapid City
Rosemount
Riverdale
Albuquerque
Louisville
Fontana
Columbus
Trevose
Sterling Heights
Gilbert
St. Cloud
Oklahoma City
Rapid City
Waukesha
Corvallis
East St. Louis
Wisconsin Rapids
Fairdale
Green Bay
Wilder
Chicago
Middletown
Brookside
Bow
Indianapolis
Bomoseen
Pensacola
Roseville
Campbell Hall
Milwaukee
Aurora
Savannah
Syracuse
Val D’Or
Douglassville
Cocoa
W. Columbia
Cookstown
Kingsville
Weston
Dumfries
Decatur
Denton
Fond Du Lac
Binghamton
Watertown
Fountain City
Whitesboro
Gloucestershire
Ft. Wright
Belleville
Oklahoma City
New Bedford
West Liberty
Grand Prairie
Sussex
Billings
Hickman
Trenton
Cedar Springs
Monroe City
Kenosha
Queensbury
Ames
Cape Girardeau
Barron
Cadott
Downing
Faribault
Cedarburg
Omaha
Charles City
State
Country
NY
SD
MN
IL
NM
KY
CA
OH
PA
MI
AZ
MN
OK
SD
WI
OR
IL
WI
KY
WI
KY
IL
CT
NS
CAN
NH
IN
VT
FL
CA
NY
WI
ON
CAN
GA
NY
QC
CAN
PA
FL
SC
ON
CAN
MO
WI
Scotland
UK
IL
TX
WI
NY
NY
WI
NY
UK
KY
MI
OK
MA
KY
TX
WI
MT
KY
TN
MI
MO
WI
NY
IA
MO
WI
WI
WI
MN
WI
NE
VA
Company
LKQ Advanced Auto Recycling
LKQ Auto Parts of Central Texas
LKQ Auto Parts of North Texas, LP
LKQ Auto Parts of South Texas
LKQ Canada Auto Parts, Inc.
LKQ Canadian Auto Parts Inc. -Ste. Sophie
LKQ Four States
LKQ John’s Auto Parts
LKQ Midwest Auto Parts
LKQ of Michigan, Inc.
LKQ of Nevada, Inc.
LKQ of New Mexico
LKQ of Southern California
LKQ Pick Your Part/Car World
LKQ Potomac German Auto
LKQ Preferred
LKQ Smart Parts, Inc.
LKQ Star Auto Parts, Inc.
LKQ Triplett ASAP, Inc.
LKQ Viking Auto Salvage
LKQ West Michigan
Logel’s Auto Parts
M & M Auto Parts, Inc.
Metro Auto Recyclers
Midway Auto Parts, Inc.
Miller’s Auto Recycling (1992), Ltd.
Mitchells Auto Parts dba
Chuck & Eddies Used Auto Parts
Morris Rose Auto Parts, Inc.
Morrisons Auto, Inc.
Mott Auto, Inc.
Mr. R’s Auto Salvage
Nordstrom’s Automotive, Inc.
Northwest Auto Parts
Olston’s Auto Recyclers
Pam’s Auto, Inc.
Parts Unlimited, Inc.
Peacock Auto Salvage, Inc.
Pete’s Auto & Truck Parts, Inc.
Remington Auto Salvage, Inc.
Rhine Auto, Inc.
Rhodes Auto S/S/S, Inc.
Ridge Road Auto Parts
Riteway Auto Parts, Inc.
Robertson’s Auto Salvage, Inc.
Rockford Auto Parts, Inc.
Sandhill Auto Salvage, LLC
Schram Auto Parts
Sharp Auto Parts, LLC
Shroyer’s Auto Parts
Snyder’s Recycled Auto and Truck Parts
Spalding Auto Parts, Inc.
Speedway Auto, Ltd.
St. James Auto & Truck Parts, LLC
Stadium Auto & Truck Parts, Inc.
Stafford’s, Inc.
Stoystown Auto Wreckers
Stricker Brothers, Inc.
Tolpa’s Auto Parts
Tom’s Foreign Auto Parts
Toomer Enterprises, LLC dba Doggett Auto Parts
Walt’s Auto, Inc.
Waterloo Auto Parts, Inc.
Wayne Auto Salvage, Inc.
Weller Auto Parts, Inc.
West Side Auto Parts, Inc.
Wilberts, Inc.
Woodfin Honda / Pick and Save
Yancey Auto Salvage
Young’s Auto Center & Salvage / Car Crushers
Y-Yard Auto & Truck, Inc.
City
Cumberland
New Braunfels
Hutchins
Houston
Cumberland
Ste. Sophie
Joplin
Blaine
Omaha
Wayne
North Las Vegas
Albuquerque
Santa Fe Springs
Candia
Frederick
Conway
Hustisford
Janesville
Akron
Northfield
Holland
Kitchener
Stafford
Valparaiso
Kansas City
Fort Erie
State
RI
TX
TX
TX
ON
QC
MO
MN
NE
MI
NV
NM
CA
NH
MD
AR
WI
WI
OH
MN
MI
ON
VA
IN
MO
ON
Plantsville
Kalamazoo
Edgerton
Lebanon
Buffalo
Garretson
Anchorage
Lincoln
St. Cloud
Pearland
Macon
Jenison
Eau Claire
Plymouth
Streator
Cleveland
Phoenix
Wareham
Rockford
Tama
Waterford
Stillwater
Lansing
Holland
Spokane
Joliet
St. James
Denver
Montgomery
Scarborough
Stoystown
Batavia
Des Moines
Remsen
Waterbury
Bryan
Springfield
Waterloo
Goldsboro
Grand Rapids
Laurel
Webster
Midlothian
Perry
Benson
Effingham
CT
MI
WI
MO
WY
SD
AK
NE
MN
TX
GA
MI
WI
WI
IL
OH
AZ
MA
IL
IA
MI
MN
MI
TX
WA
IL
MO
CO
IL
ON
PA
OH
IA
NY
CT
TX
OH
IA
NC
MI
DE
NY
VA
MO
NC
IL
Country
CAN
CAN
CAN
CAN
CAN
Certified News
Approved CAR Participants
Company
43 Auto Salvage
A & A Auto and Truck Parts, Inc
A & A Auto and Truck Parts, Inc. (North)
A & C Auto Parts & Wrecking Co.
A & L Auto Recyclers, Inc.
A & P Auto Parts, Inc.
A-1 Auto Recyclers
AAA Auto Salvage - North
AAA Auto Salvage, Inc.
AAAACO Auto Parts, Inc.
AADCO Auto Parts
Aadlen Bros Auto Wrecking
ABC Auto Parts & Sales, Inc.
Ace Auto Recyclers, Inc.
Action Auto Parts, Inc.
Albuquerque Foreign Auto Parts
Algar, Inc. dba Grade A Auto Parts
All Auto Parts Co.
All Car & Truck Recycling
All Foreign & Domestic Used Auto Parts, Inc.
All Foreign Used Auto Parts, Inc.
Alliance Auto Parts
Allwest Auto Parts
Al’s Auto Parts, Inc.
Alvin’s Automotive Recycling
American and Import Auto Parts
American Auto Parts
American Auto Recycling
Arnprior and Ottawa Auto Parts
Auto Parts City, Inc.
Automotive Parts Solutions
B & B Auto Parts & Salvage, Inc.
B & B Auto Salvage, Inc. - PRP
B & B Towing & Auto Recycling
B & M Auto Sales & Parts, Inc.
B & M Cars & Salvage
B & R Auto Wrecking
B Auto Parts
Badger Motors
Baird’s Auto Parts, Inc.
Bauer’s Auto Wrecking
Bay Auto Parts
Bell City Auto Center, Inc.
Bessler Auto Parts
Bill’s Used Parts, Inc.
Bionic Auto Parts & Sales, Inc.
Bishop’s Used Auto Parts, Inc.
Black Gold Import Auto Parts
Blenkhorn’s Auto Recyclers, Ltd.
Borges Foreign Auto Parts, Inc.
Bow Auto Salvage, Inc.
Bowie Used Auto Parts, Inc.
Brandywine Auto Parts, Inc.
Brandywine Truck Parts
Brooks Auto Sales, Inc.
Brothers Auto Salvage Yard, Inc.
Brown’s Auto Salvage
Bruce Auto Parts, Inc.
Butler Auto Recycling, Inc.
BW Auto Dismantlers, Inc.
C & H Salvage Corp.
Calumet Auto Salvage, Inc.
Cambridge Auto Parts and Wreckers Company, Ltd.
Camp Auto Salvage
Canadian Auto Recycling
Carcone’s Auto Recycling
Cash n Carry Pull-Your-Part
Central Auto Recycling, Inc.
Central Small Car Salvage
Central Truxx
Centre De Recyclage Universel (1981) Ltee.
Chuck’s Auto Salvage, Inc.
City
Joplin
Topeka
Topeka
Cleveland
Comber
Cicero
Rapid City
East Bethel
Rosemount
Lorton
Brampton
Sun Valley
Riverdale
Iowa City
Marshalltown
Albuquerque
Louisville
Fontana
Anderson
Columbus
Fredericksburg
Woodside
Edmonton
Trevose
Oakland
Sterling Heights
Omaha
Gilbert
Arnprior
Gurnee
St. Cloud
Oklahoma City
Rapid City
Englishtown
Waukesha
Sulphur Springs
Corvallis
East St. Louis
Wisconsin Rapids
Fairdale
Fresno
Green Bay
Brantford
Wilder
Christiansburg
Chicago
Middletown
Nisku
Brookside
Dighton
Bow
Bowie
Brandywine
Brandywine
Oilville
Indianapolis
Bomoseen
Mechanicsville
Pensacola
Roseville
Campbell Hall
Milwaukee
Cambridge
Barberton
Mount Pearl
Aurora
Savannah
Syracuse
Brandywine
North Bay
Val D’Or
Douglassville
State
MO
KS
KS
OH
ON
NY
SD
MN
MN
VA
ON
CA
IL
IA
IA
NM
KY
CA
CA
OH
VA
NY
AB
PA
CA
MI
NE
AZ
ON
IL
MN
OK
SD
NJ
WI
TX
OR
IL
WI
KY
CA
WI
ON
KY
VA
IL
CT
AB
NS
MA
NH
MD
MD
MD
VA
IN
VT
VA
FL
CA
NY
WI
ON
OH
NF
ON
GA
NY
MD
ON
QC
PA
Country
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
Company
Clayton Auto Parts & Wrecking, Inc.
Cocoa Auto Salvage, Inc.
Colorado Auto & Parts, Inc.
Columbia Auto Parts
Compact Auto Parts
Cookstown Auto Centre, Ltd.
Cosmos Ocean County Recycled Auto Parts
Cosner Brothers Auto Parts, Inc.
Counselman Automotive Recycling, LLC
County Line Auto Parts
Cousineau Auto Parts, Inc.
Cousineau Auto, Inc.
Covey’s Auto Recyclers, Ltd.
D. A. Auto Parts, Ltd.
Danny’s Auto Salvage, Inc.
Decatur Auto Parts, Inc.
Denison Auto Parts, Inc.
Denton County Auto Salvage
Diamond Auto Parts
D-N-J Auto Parts
Dom’s Auto Parts Co., Ltd.
Don Scharf Automotive, Inc.
Don’s Automotive Mall, Inc.
Doug’s Auto Recyclers, Inc.
Dulaney Auto and Truck Parts of Amarillo, Inc.
Duval Auto Parts
East Bay Auto Parts, Inc.
Economy Auto Parts
Eden Used Auto Parts, Inc.
Ed’s Auto Salvage, Ltd.
Eiss Brothers Auto Parts, Inc.
Elgin Super Auto Parts and Sales, Inc.
Elmer’s Auto, Inc.
Erie Vo-Vo, Inc.
FAB Recycling Ltd.
Fireside’s U-Pull It Auto Parts
Foreign Auto Salvage
Foreign Car Parts, Inc.
Fox Auto Parts, Inc.
G & R Auto Parts, Inc.
Gary’s U-Pull-It, Inc.
Geiger Truck Parts, Inc.
Glenn’s Auto & Truck Parts
Goyette’s, Inc.
Grassy Auto Parts, Inc.
Gray and White Auto Parts
Grimes Truck & Auto Parts, LLC
H & H Auto Parts & Salvage, Inc.
H & H Auto Parts, LLC
Hanser’s Automotive & Wrecker Company
Harry’s Auto Wrecking
Hickman Motors, Inc.
Higgins Auto Parts
Highway 54 Salvage, Inc.
Highway Auto Parts
Hillsboro Auto Wrecking
Hilltop Auto Wreckers, Ltd.
Hi-way Auto Parts
Hi-Way Auto, Inc.
Horsehead’s Automotive Recycling
Hovis Inc. dba Patterson Auto Wrecking
I-55 Auto Salvage
Intermountain Auto Recycling, Inc.
J & J Auto Wrecking, Inc.
J & R Truck Parts
J.C. Auto & Truck Parts
Jantz’s Yard 4 Automotive, Inc.
Jeff Smid Auto, Inc.
Jerry Brown Auto Parts Center, Ltd.
Jerry Carney & Sons, Inc.
Jerry’s Auto Salvage, Inc.
Johannes Auto Sales, Inc.
City
Clayton
Cocoa
Englewood
W. Columbia
Brandywine
Cookstown
Bayville
Troy
Mobile
Kingsville
Weston
Antigo
Blandford
Dumfries
Tulsa
Decatur
Cleveland
Denton
Fond Du Lac
Owensboro
Courtice
Eagle River
Binghamton
Coldwater
Amarillo
Forest
Interlochen
Tulsa
Eden
Westlock
Watertown
Elgin
Fountain City
Whitesboro
Gloucestershire
Sandusky
Ft. Wright
Upper Marlboro
Belleville
Oklahoma City
Binghamton
Watseka
Houston
New Bedford
West Liberty
Carrollton
Grand Prairie
Sussex
Cozad
Billings
Grande Prairie
Hickman
Bakersfield
Trenton
Roseville
Hillsboro
Cedar Valley
Tyler
Brownwood
Elmira
Cochranton
Channahon
Rigby
Marshallville
Cedar Springs
Monroe City
Kenosha
Davenport
Queensbury
Ames
Big Lake
Jackson
State
Country
OH
FL
CO
SC
MD
ON
CAN
NJ
VA
AL
MO
WI
WI
NS
CAN
Scotland
UK
OK
IL
OH
TX
WI
KY
ON
CAN
WI
NY
MI
TX
VA
MI
OK
MD
AB
CAN
NY
IL
WI
NY
UK
OH
KY
MD
MI
OK
NY
IL
TX
MA
KY
GA
TX
WI
NE
MT
AB
CAN
KY
CA
TN
MI
OR
ON
CAN
TX
TX
NY
PA
IL
ID
OH
MI
MO
WI
IA
NY
IA
MN
MO
Certified News
Approved CAR Participants CONTINUED
Company
Junior Sinn Auto Parts, LLC
Kadinger’s II
Kadinger’s, Inc.
Kadinger’s, Inc.
Keiffer Auto Recyclers
Keith Auto Recyclers LLC dba KARS
Kelly Auto Parts
Kenny U-Pull
Kirchhayn Auto Salvage, Inc.
Knox Auto Parts & Rebuildable Wrecks
Kosiski Auto Parts, Inc.
Lacy Auto Parts, Inc.
Leesville Auto Wreckers, Inc.
Lems Auto Recyclers, Inc.
Lentini Auto Salvage, Inc.
Lewisville Motor Company, Inc.
Linder’s, Inc.
LKQ - Barber’s Auto Sales
LKQ 250 Auto, Inc.
LKQ A & R Auto Parts, Inc.
LKQ A Reliable U Pull It South
LKQ Advanced Auto Recycling
LKQ Arizona (aka: LKQ All Models Corp.)
LKQ Atlanta, LP
LKQ Auto Parts of Central Texas
LKQ Auto Parts of North Texas, LP
LKQ Auto Parts of South Texas
LKQ Barger Auto Parts Nampa
LKQ Birmingham, Inc.
LKQ Brad’s Auto & Truck Parts, Inc.
LKQ Broadway Auto Parts, Inc.
LKQ Canada Auto Parts, Inc.
LKQ Canadian Auto Parts Inc. -Ste. Sophie
LKQ Copher Self Service Auto Parts - Bradenton, Inc.
LKQ Copher Self Service Auto Parts - Clearwater, Inc.
LKQ Copher Self Service Auto Parts St. Petersburg, Inc.
LKQ Copher Self Service Auto Parts - Tampa, Inc.
LKQ Crystal River, Inc.
LKQ Dominion Auto Recycling, Inc.
LKQ Foster Auto Parts of Salem
LKQ Foster Auto Parts, Inc.
LKQ Four States
LKQ Gorham Auto Parts Corp.
LKQ GreenLeaf - Dallas
LKQ GreenLeaf - Fort Worth
LKQ GreenLeaf - Kennedale
LKQ GreenLeaf - Seguin
LKQ Hunts Point Auto Parts Corp.
LKQ John’s Auto Parts
LKQ M. Robert, Inc.
LKQ Melbourne
LKQ Mid-America Auto Parts, Inc.
LKQ Midwest Auto Parts
LKQ Minnesota, Inc.
LKQ Northern California (Redding)
LKQ Northern VA
LKQ of Central California
LKQ of Ft. Myers
LKQ of Indiana, Inc.
LKQ of Michigan, Inc.
LKQ of Nevada, Inc.
LKQ of New Mexico
LKQ of Northwest Arkansas dba LKQ Mid-America
LKQ of Southern California
LKQ of Tennessee
LKQ Penn-Mar, Inc.
LKQ Pick Your Part Anaheim
LKQ Pick Your Part Bakersfield
LKQ Pick Your Part Chula Vista
LKQ Pick Your Part Gainesville
LKQ Pick Your Part Help Your Self
LKQ Pick Your Part Stanton
LKQ Pick Your Part Sun Valley
LKQ Pick Your Part Wilmington
LKQ Pick Your Part/Car World
LKQ Pintendre Autos, Inc.
City
Cape Girardeau
Barron
Cadott
Downing
Canton
Pontotoc
Faribault
Laval
Cedarburg
Knoxville
Omaha
Charles City
Rahway
Doon
Ringoes
Winston-Salem
Worcester
Ardmore
Harrisville
Duncan
Blue Island
Cumberland
Phoenix
Jenkinsburg
New Braunfels
Hutchins
Houston
Nampa
Traffon
Redmond
Stuyvesant
Cumberland
Ste. Sophie
Bradenton
Clearwater
State
MO
WI
WI
WI
OH
MS
MN
QC
WI
TN
NE
VA
NJ
IA
NJ
NC
MA
AL
OH
SC
IL
RI
AZ
GA
TX
TX
TX
ID
AL
OR
NY
ON
QC
FL
FL
St. Petersburg
Tampa
Crystal River
Stoney Creek
Salem
Portland
Joplin
Gorham
Dallas
Haltom City
Kennedale
Seguin
Bronx
Blaine
Sainte-Madeleine
Melbourne
Topeka
Omaha
Albert Lea
Redding
Dumfries
Bakersfield
Ft. Myers
Plainfield
Wayne
North Las Vegas
Albuquerque
Fayetteville
Santa Fe Springs
Manchester
York Haven
Anaheim
Bakersfield
Chula Vista
Gainesville
Wilmington
Stanton
Sun Valley
Wilmington
Candia
Pintendre
FL
FL
FL
ON
OR
OR
MO
ME
TX
TX
TX
TX
NY
MN
QC
FL
KS
NE
MN
CA
VA
CA
FL
IN
MI
NV
NM
AR
CA
TN
PA
CA
CA
CA
FL
CA
CA
CA
CA
NH
QC
Country
CAN
CAN
CAN
CAN
CAN
CAN
Company
LKQ Potomac German
LKQ Potomac German Auto
LKQ Preferred
LKQ Pull n Save Auto Parts of Aurora, LLC
LKQ Route 16 Used Auto Parts
LKQ Salisbury, Inc.
LKQ Savannah, Inc.
LKQ Self Service Auto Parts - Durham
LKQ Self Service Auto Parts - Holland
LKQ Self Service Auto Parts - Kalamazoo, Inc.
LKQ Self Service Daytona
LKQ Self Service Greensboro
LKQ Self Service Memphis
LKQ Self Service Raleigh
LKQ Smart Parts, Inc.
LKQ Star Auto Parts, Inc.
LKQ Triplett ASAP, Inc.
LKQ Utah
LKQ Viking Auto Salvage
LKQ West Michigan
Logel’s Auto Parts
M & M Auto Parts, Inc.
Manuel’s Auto Wrecking
Marco Auto Recycling, Inc.
Maritime Auto Salvage, Ltd.
Marshall Auto Wreckers, Ltd.
Massey’s Auto Parts, Inc.
Matlock’s Used Cars & Parts, Inc.
McDill Auto Wrecking, Inc.
Metro Auto Recyclers
Metro Auto Salvage, Inc.
Mid Island Auto Wreckers, Inc.
Middleton Auto Parts
Midway Auto Parts, Inc.
Miller’s Auto Recycling (1992), Ltd.
Milliron Auto Parts, Inc.
Misgen Auto Parts, Inc.
Mitchells Auto Parts dba
Chuck & Eddies Used Auto Parts
Morris Rose Auto Parts, Inc.
Morrisons Auto, Inc.
Mott Auto, Inc.
Mr. R’s Auto Salvage
Newton Auto Salvage, Inc.
Newville Auto Salvage, Inc.
Nicklin Auto Parts and Recyclers
Niks Auto Parts, Inc.
Nissenbaum’s Auto Parts, Inc.
Nordstrom’s Automotive, Inc.
North Verde Auto Salvage
Northwest Auto Parts
Novak Auto Parts, Inc.
Ole South Auto Salvage, Inc.
Olston’s Auto Recyclers
Pacific Auto Salvage, Inc.
Pam’s Auto, Inc.
Parts Unlimited, Inc.
Pat’s Auto Salvage, LLC
Peacock Auto Salvage, Inc.
Pete’s Auto & Truck Parts, Inc.
Pick-n-Pull - Cumberland
Pick-n-Pull Auto Dismantlers - Calgary
Pick-n-Pull Auto Dismantlers - Edmonton
Pick-n-Pull Auto Dismantlers - Kelowna
Poell’s Enterprises, Inc.
Popow & Sons Body Shop, Ltd.
Premier Auto & Truck Parts, Inc.
Pull-A-Part Akron
Pull-A-Part Atlanta East
Pull-A-Part Atlanta North
Pull-A-Part Atlanta South
Pull-A-Part Augusta
Pull-A-Part Baton Rouge
Pull-A-Part Birmingham
Pull-A-Part Canton
Pull-A-Part Charlotte
Pull-A-Part Cleveland I (East)
City
Orlando
Frederick
Conway
Aurora
Webster
Salisbury
Savannah
Durham
Holland
Kalamazoo
Daytona Beach
Greensboro
Memphis
Garner
Hustisford
Janesville
Akron
Salt Lake City
Northfield
Holland
Kitchener
Stafford
Merced
Red Wing
Truro
Lethbridge
Millington
Cleveland
Stevens Point
Valparaiso
Lakeville
Deer Park
Fraser
Kansas City
Fort Erie
Mansfield
Ellendale
State
FL
MD
AR
CO
MA
NC
GA
NC
MI
MI
FL
NC
TN
NC
WI
WI
OH
UT
MN
MI
ON
VA
CA
MN
NS
AB
TN
NC
WI
IN
MN
NY
MI
MO
ON
OH
MN
Plantsville
Kalamazoo
Edgerton
Lebanon
Buffalo
Covington
Edgerton
Guelph
Neenah
Somerville
Garretson
Ontario
Anchorage
New Brighton
Lake Placid
Lincoln
American Canyon
St. Cloud
Pearland
Waterloo
Macon
Jenison
Cumberland
Calgary
Edmonton
Kelowna
Dewitt
Lacombe
Cedar Springs
Akron
Lithonia
Norcross
Conley
Augusta
Baton Rouge
Birmingham
Canton
Charlotte
Cleveland
CT
MI
WI
MO
WY
GA
WI
ON
WI
MA
SD
OR
AK
PA
FL
NE
CA
MN
TX
IA
GA
MI
RI
AB
AB
BC
IA
AB
MI
OH
GA
GA
GA
GA
LA
AL
OH
NC
OH
Country
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
CAN
Company
Pull-A-Part Cleveland II (West)
Pull-A-Part Columbia
Pull-A-Part Indianapolis
Pull-A-Part Jackson
Pull-A-Part Knoxville
Pull-A-Part Lafayette
Pull-A-Part Louisville
Pull-A-Part Memphis
Pull-A-Part Mobile
Pull-A-Part Montgomery
Pull-A-Part Nashville
Pull-A-Part New Orleans West
Pull-A-Part Winston-Salem
Reitman Auto Parts & Sales, Inc.
Remington Auto Salvage, Inc.
Rhine Auto, Inc.
Rhinelander Auto Salvage
Rhodes Auto S/S/S, Inc.
Ridge Road Auto Parts
Ripple’s Service, Inc.
Riteway Auto Parts, Inc.
Robert’s Engines, Inc.
Roberts Salvage, Inc.
Robertson’s Auto Salvage, Inc.
Rock & Roll Auto Recycling
Rockford Auto Parts, Inc.
Rusty Acres Automotive, Inc.
Salvage GM Parts of South Georgia, Inc.
Sandhill Auto Salvage, LLC
School Street Light Truck Parts
Schram Auto & Truck Parts Lansing, Inc.
Schram Auto Parts
Scotty’s Auto Parts
SGI Salvage Moose Jaw
SGI Salvage North Battleford
SGI Salvage Regina
SGI Salvage Saskatoon
City
Cleveland
Columbia
Indianapolis
Jackson
Knoxville
Lafayette
Louisville
Memphis
Mobile
Montgomery
Nashville
New Orleans
Winston-Salem
Melbourne
Eau Claire
Plymouth
Rhinelander
Streator
Cleveland
Upper Marlboro
Phoenix
Lucama
Moffett
Wareham
Pleasanton
Rockford
Jacksonville
Valdosta
Tama
Lowell
Mason
Waterford
Virginia
Moose Jaw
North Battleford
Regina
Saskatoon
State
OH
SC
IN
MS
TN
LA
KY
TN
AL
AL
TN
LA
NC
KY
WI
WI
WI
IL
OH
MD
AZ
NC
OK
MA
CA
IL
FL
GA
IA
MA
MI
MI
IL
SK
SK
SK
SK
Country
CAN
CAN
CAN
CAN
Company
SGI Salvage Yorkton
Sharp Auto Parts, LLC
Shipman Auto Parts, Inc.
Shroyer’s Auto Parts
Smith Auto & Truck Parts, Inc.
Smith Auto Parts & Sales, Inc.
Snyder Auto Body & Paint
Snyder’s Recycled Auto and Truck Parts
Southern Maryland Used Auto Parts
Spalding Auto Parts, Inc.
Speedway Auto, Ltd.
St. James Auto & Truck Parts, LLC
Stadium Auto & Truck Parts, Inc.
Stafford’s, Inc.
Stoystown Auto Wreckers
Stricker Brothers, Inc.
Sunscape Enterprises, Inc. dba Ace Auto Wreckers
Tolpa’s Auto Parts
Tom’s Foreign Auto Parts
Toomer Enterprises, LLC dba Doggett Auto Parts
Tri State Auto Parts, Inc.
Van Horn Auto Parts, Inc.
Vander Haag’s, Inc.
Vander Haag’s, Inc.
Walt’s Auto, Inc.
Waterloo Auto Parts, Inc.
Wayne Auto Salvage, Inc.
Weller Auto Parts, Inc.
West Auto Wreckers, Ltd.
West Side Auto Parts, Inc.
Wilberts, Inc.
Woodfin Honda / Pick and Save
Yancey Auto Salvage
Young’s Auto Center & Salvage / Car Crushers
Y-Yard Auto & Truck, Inc.
City
Yorkton
Stillwater
Brainerd
Lansing
Garden City
Fairfield
Clarinda
Holland
Mechanicsville
Spokane
Joliet
St. James
Denver
Montgomery
Scarborough
Stoystown
Batavia
E. Brunswick
Des Moines
Remsen
Waterbury
Bryan
Walls
Mason City
Des Moines
Spencer
Springfield
Waterloo
Goldsboro
Grand Rapids
Chula Vista
Laurel
Webster
Midlothian
Perry
Benson
Effingham
State
SK
MN
MN
MI
KS
IA
IA
TX
MD
WA
IL
MO
CO
IL
ON
PA
OH
NJ
IA
NY
CT
TX
MS
IA
IA
IA
OH
IA
NC
MI
CA
DE
NY
VA
MO
NC
IL
Country
CAN
CAN
SPOTLIGHT ON EXCELLENCE
Diamond Auto Parts
Executing a
This Wisconsin
Auto Recycler
proves that winning
in business is all in
the teamwork and
the coaching.
B Y LY N N N O V E L L I
L
Winning
Game Plan
ike the Green Bay Packers, one of the winningest teams in the NFL, a winning
auto recycling business is built piece by strategic piece. It takes vision, leadership, a
great team, and a plan. For the Green Bay Packers, putting the right pieces
together has yielded 13 world championships, 22 players in the NFL Hall of Fame
and a reputation as one of the top echelon teams in the league.
At Diamond Auto Parts, owner Dan Argall has applied the same principles to his Fond du Lac, Wis. operation over the past 30 years to earn
his business a winning record and a reputation for quality.
Argall, who came to the auto recycling industry
from industrial tool sales, purchased the facility in
1984. Established in the early 1950s the business
went through three owners during its first 30 years,
but has had only one – Argall – in its second 30
years.
It’s been a learning experience for Argall. “I never
worked a day in the recycling business until I
bought this one,” he admits. Nonetheless, armed
with an innate business sense – plus a good dose of
common sense – Argall applied vison, leadership,
a great team and a plan to transform the original
“expansion team” business he purchased into a
champion.
Originally a five-acre dirt lot that quickly turned
to mud in the rain, Diamond Auto Parts today is a
state-of-the-art, 13-acre, fenced, graveled, totally
EPA-compliant, ARA CAR and Gold Seal facility
with its own self-contained water management system added in 2011. Diamond Auto Parts now
employs 22 people – none of them family, something of an anomaly in the recycling industry – dismantles 750 vehicles a year and sells to other
recyclers, body shops and repair facilities in the surrounding Wisconsin area and across the country. In
2011, Argall expanded and improved his operation
with additional vehicle storage and a new sales and
administration building.
In August 1984, Diamond Auto Parts owner Dan Argall purchased his yard in the condition above. He and his winning team have transformed
the yard, as seen in the inset photo, into a Gold Seal certified facility of which to be proud.
Argall’s Top 10
Automotive Recycling is privileged this month to have
Dan Argall share his personal favorite Top 10 best
practices with our readers.
1. Know your numbers. Those three words, Argall
says, are the advice he would give to anyone starting
out today in the automotive recycling business,
whether that individual has purchased, inherited or
started a business. Like the Packers’ Head Coach
Mike McCarthy, you need to know your team’s
strengths and weaknesses, past performance record,
and future expectations. That means, according to
Argall, know and understand the numbers on your
balance sheet and use them to plan your next moves.
2. Connect with other recyclers to learn best practices that you can apply in your business. “I haven’t
had an original idea in 30 years,” Argall jokes.
“Leaders in our industry are the ones who share,” he
says. “They are the people who see the future, and
you hop on board.”
An ARA member since 1985, Argall believes in the
benefits of attending the annual ARA convention.
“When you meet recyclers that you aren’t in direct
competition with, you can discuss the nuts and bolts
of your business,” he explains.
You need to know your team’s strengths
and weaknesses, past performance
record, and future expectations.
For example, he relates the changes that came
about due to a conversation with other ARA members
about turbochargers at the annual convention 15
years ago. “At the time, we were leaving them on the
engine,” he recalls. “Then at ARA we learned that turbochargers have value, so we were leaving a few hundred dollars on the table with every one we did not
take off.” As a result of that conversation, Argall
changed the dismantling work flow at Diamond Auto
Parts to include removal of turbochargers.
People outside the recycling industry with whom
you interact can be a source of best practices related
to non-technical areas such as sales, advertising, and
employee management, he adds.
3. Put yourself in the other person’s seat, and be
willing to give a little. “The best business advice I ever
got was its okay to negotiate, but then push a little
something across the table, and that customer will
come back,” Argall explains. In other words, he adds,
“being willing to move a little bit can mean a lot.”
SPOTLIGHT ON EXCELLENCE
4. A corollary to No. 3: The customer is king. Auto
recycling is all about building and nurturing relationships, including with other recyclers. Strong customer relationships include having the parts in stock
that your customers need, maintaining the highest
level of quality control so the parts the customer
receives are as promised, ensuring next-day delivery
and always, always, always delivering superior service
and warranty. At Diamond Auto Parts, Argall has
ratcheted relationship-building up even another
notch with perks like a direct phone number to connect a customer with his personal sales rep.
5. Always think of and refer to your business as auto
recycling, not auto salvage, and yourself as an auto
recycler. Argall points out that today’s consumers are
savvy about recycling and understand the recycling
business better than ever. “We lead by example,” he
says. “We recycle the cars that everyone needs, and we
want people to realize that we are an important part
of the food chain.”
6. Recruit and retain the highest quality people you
can find, especially for key positions like dismantling.
“We have gone to a higher level of employee and now
hire those who are better qualified and better equipped,” Argall explains. “As a result we can maintain
higher production.” Diamond’s two dismantlers have
the skills and talent to process an average of 12 to 15
vehicles a week.
7. Treat your employees fairly, and you will be
rewarded with a motivated, committed, loyal team.
Diamond Auto Parts offers a 401(k) with a company
match, three weeks of vacation pay after 10 years of
employment, and generous commission to disman60 Automotive Recycling | November-December 2014
Argall has ratcheted relationshipbuilding up even another notch
with perks like a direct phone number
to connect a customer with his
personal sales rep.
tlers and salespeople. Commission for those positions,
Argall adds, is a “best practice loud and clear.” Proof
of his HR policies: 15 of his 22 employees have been
with the company more than 15 years.
8. Focus on having a broad and deep inventory.
Forget the distinction between foreign and domestic
cars because it’s basically meaningless in today’s market. “Models change much more quickly these days
in styling and mechanical than they used to, and it’s
important to keep up so you stock what your customers want,” Argall suggests.
9. Maximize workflow efficiency. Argall keeps parts
stocking and dismantling separate, and believes this
workflow yields higher production. His two dismantlers only dismantle vehicles; six warehouse employees are responsible for stocking, prepping, and
shipping parts.
Wisconsin’s weather dictates that incoming cars get
inventoried inside (using Pinnacle) with all mechanical components stored in two 120 x 70 ft. warehouses
(a total of more than 16,000 sq. ft.). Diamond Auto
Parts maintains an inventory of 1,350 vehicles, including 90 outdoor racks that store 540 vehicles.
The addition of the racking system increased inventory capacity by 300 vehicles, Argall notes. To keep up
FASTfacts
Diamond Auto Parts
Location: Fond du Lac, Wis.
Established: 1953
Under Present Owner: Since 1984
Production: 750 vehicles dismantled/year
Market Area: 90-mile radius; beyond 90 miles to recyclers only
Employees: 22, 15 with at least 15 years of service
ARA Credentials: Gold Seal and CAR Certifications
Website: www.diamondautoparts.com
with inventory demand, time from vehicle check-in
to inventory is just seven days.
10. Leverage the power of technology to build your
business. Diamond Auto Parts has a simple but powerful website that gives customers the option of using
either an easy search that displays part availability and
pricing or a parts request form for larger orders. The
website has evolved over the past seven years to be
more interactive, and now more than 50 percent of
calls are web-generated, Argall reports.
Diamond Auto Parts also has success selling parts
on eBay. The key to this business, Argall agrees with
other ARA members, is to consider eBay your spe-
Items such as Mercedes seats and
aluminum wheels sell well on eBay.
Do eBay right, Argall says,
and it can be profitable.
cialty purveyor where you can sell lower demand,
higher price parts from luxury vehicles. Items such as
Mercedes seats and aluminum wheels sell well on
eBay. Diamond Auto Parts has an employee dedicated to online sales and maintains an online inventory
of just 100 to 150 items at a time. Do eBay right, Argall
says, and it can be profitable.
From an “expansion team” on a muddy, five-acre
yard with limited inventory and no environmental
practices, Argall has created a Super Bowl contender
that commands respect across the automotive recycling industry for innovation and quality. The transformation and the results have brought immense
personal satisfaction to Argall and his team. “We can’t
help but feel proud of the way things have turned
out,” Argall says. ■
Lynn Novelli is a freelance writer based in Ohio.
Capitol Connection
Latest Legislative Updates from the Hill and Around the Country
GM Recall Situation Triggers Activity on Many Fronts
T
he importance of improving the automotive parts recall process and making it more transparent has increased in
light of this year’s deluge of recalls and
related issues. ARA continues working
with the National Highway Traffic Safety
Administration (NHTSA), the U.S. Congress and automakers to build on this
transparency and require that the OEM’s
provide part number and build sheet
information to professional automotive
recyclers for integration into their inventory management systems.
Continued GM Problems: General Motors
(GM) has consistently stumbled trying to
track recalls. Several additional recent
issues that GM is experiencing highlight
the need for more transparency in the
automotive parts supply chain – an issue
for which ARA continually advocates.
GM not only has millions of faulty ignition switches under recall but the company is having difficulty finding them,
adding to troubles which began to surface at the start of this year, such as:
• According to a U.S. Federal regulatory filing, GM reported that nearly 6.4
percent (approximately 140,000) of the
2.2 million ignition switch recall notices
that it sent out were undeliverable. Many
of the recalled cars are approaching 10
years old and may have had many different owners. In addition, the Detroit News
suggests that “given the vehicle’s age,
some could be in scrap yards.”
• Federal regulators have also found
that GM’s “VIN look-up” does not alert a
consumer to a safety recall for their vehicle if the repair parts are not yet available.
NHTSA stated that vehicle owners “are
receiving incorrect and misleading results”
using GM’s system.
• It has been reported in the automotive trade press that documents which
GM submitted to Federal regulators
reveal that GM took more immediate
action on larger car ignition problems
than for smaller cars when they first
occurred. These included mid-size and
full-size Cadillacs, Chevrolets, Oldsmobiles and Pontiacs. The 13 deaths attributed to the faulty ignition switches were
in smaller, lower price point Chevrolet
Cobalts and Saturn Ions.
GM Looks to “Salvage Yards” for Recalled
Switches: GM is reporting that the manufacturer is wading into new territory in
the effort to find all of its recalled
ignition switches. According to GM’s
Vice President of North American Customer Care and Aftersales, GM has “used
extraordinary tactics that the company
has never pursued before including contracting with third-party companies to
find switches from salvage yards.”
Not long after GM issued these statements, ARA became aware of notices
being received by ARA members from a
third party contractor explaining that it
had been hired by GM to “coordinate
the purchase and return of certain used
parts, which are subject to a product
safety ignition switch recall, from salvage
yards.” Information provided to the yards’
parts sales managers not only included
the make, model, and year of the vehicles
subject to the recall but also detailed the
specific part numbers, which the letter
stated “are provided so the manager can
identify the parts being recalled.”
It comes as no surprise to ARA and its
members, of course, that the manufacturer knows well the hurdles that professional automotive recyclers must routinely
go through to correctly identify parts
without specific parts numbers.
In the past few months, ARA has met
with several automakers to discuss professional automotive recyclers’ access to parts
numbers on a routine basis to correctly
identify OEM recycled parts. Only with
this information can recyclers determine
the appropriate path for OEM recycledparts in the parts supply chain.
ARA continues to educate all stakeholders in the parts recall process about
the unique and critical role which professional automotive recyclers play in
deciding what happens to recycled OEM
parts and how crucial it is for recyclers to
have parts numbers when making supply
chain decisions. This issue will be central
to the nation’s automotive safety agenda
for the foreseeable future and ARA will
not stop in its efforts to compel the automobile manufacturer community to eliminate decades-old data restrictions and
provide professional automotive recyclers
with access to the same part numbers
that the automakers provide to their
dealer networks, the insurance industry,
and the collision repair community.
Federal Legislation: A new U.S. Senate
comprehensive auto safety measure was
introduced in the last days of the 113th
Congress and ARA worked with the sponsor’s staff to have the OEM data policy
issue included in the bill and will continue
these negotiations in the 114th Congress
in 2015. In the interim, ARA continues to
meet with key staff to encourage adoption
of our policy objective that professional
automotive recyclers receive OEM part
numbers and build sheets through its
industry managements systems.
Federal Database: The automobile manufacturers’ new VIN-based recall database, mandated by NHTSA, went live in
August 2014. Consumers can now input
their light vehicle or motorcycle VIN into
a central database, accessible at www.safer
car.gov/vinlookup, and learn if their
vehicle has a safety defect.
In addition, all manufacturers of light
vehicles and motorcycles must provide a
VIN-based search capability for uncompleted recalls on their own websites and
it must be updated on a weekly basis.
The final rule implementing the database mandate confirmed that NHTSA
“requires each manufacturer to provide
State Issues
n CALIFORNIA, Assembly Bill 2313 seeks to create a
Metal Theft Task Force Program to provide funding for
local law enforcement agencies to combat metal theft and
related recycling crimes. Voted out of the Assembly in late
May, AB 2313 would establish a 1 percent assessment on the
purchase price for each junk sale that involves the sale of
any scrap metals or alloys. The fee would be levied upon the
seller and collected by junk dealers and recyclers at the time
each sale is conducted for deposit into the Task Force fund.
Licensed automotive dismantlers in California have secured
an exemption from the fee and are continuing to engage
with the bill sponsor and other stakeholders.
During the months of July and August, AB 2313 was
heard by the Senate Committees on Public Safety and
Appropriations, which both voted to pass the bill. On
August 26 the bill was ordered to inactive file signifying
that the legislation is ready for floor consideration and
will be taken up at a later date. One day’s public notice
I
online search capability of at least 15
years’ worth of recall completion data,”
an issue that ARA advocated to adopt.
Lawsuits: A class-action lawsuit alleging
diminished resale value of GM cars has
been filed before a U.S. District Court
Judge in the Southern District of New
York -- the same district where GM filed
for and emerged from bankruptcy in
2009 -- on behalf of GM customers alleging a loss of resale value as a result of the
current recalls.
According to a recent study by iSeeCars.
com, the Chevrolet Cobalt, Saturn Ion,
Saturn Sky, Pontiac Solstice, Pontiac G5
and Chevrolet HHR have seen the biggest
drop in resale price with a 14 percent
decrease, compared to other used cars
between March and June 2014.
Since the ignition switch recalls began
in February, more than 80 lawsuits have
been filed by customers alleging a loss of
economic value. GM asked that the cases
be consolidated and transferred to New
York, and has also asked a federal bankruptcy court to determine whether claims
are blocked by one of the terms of its
bankruptcy sale order, specifically the
creation of a “new GM,” which may have
affected the ability to bring claims against
the new company for the pre-bankruptcy
is required to place it back on the floor agenda.
Also in California, Senate Bill 1249 would permit the
state’s Department of Toxic Substances Control to adopt
regulations establishing management standards for hazardous waste management activities at metal shredding
facilities. The legislation is a concern for licensed automotive dismantlers in the state because it could authorize
DTSC, in consultation with the Department of Resources
Recycling and Recovery (CalRecycle), the State Water
Resources Control Board as well as local air quality management districts, to establish management standards for
hazardous waste management activities as an alternative to
current statutory hazardous waste management requirements and regulations. SB 1249 passed the Senate in late
May and has gone through several modifications as a result
of the committee process and active participation in stakeholder discussions by ARA’s affiliated chapters in the state.
Following a back-and-forth between the Assembly and
Senate over amendments to the bill in August, SB 1249 was
passed by both houses of the legislature on August 28.
conduct. The order does not affect lawsuits over personal injuries or deaths
allegedly caused by the vehicles. A decision on whether “old GM” can be held
liable for customers’ alleged loss of economic value is expected soon.
The class-action lawsuit has important
implications for the sale of recycled GM
automotive parts.
5 Years After Cash For
Clunkers: The Legacy of the
Program Still Up for Debate
W
ith five years since the launch of the
Car Allowance Rebate System, or
Cash for Clunkers, the success of the federal government’s effort to simultaneously stimulate domestic automobile sales
and get older, less environmentally-friendly vehicles off the road is yet to be determined. The program cost taxpayers $3
billion over two months and provided
vouchers of up to $4,500 to consumers
willing to trade in their old car for a new
vehicle purchase or lease.
Leading up to final adoption and
enactment of Cash for Clunkers, ARA
was instrumental in protecting the professional automotive recycling industry,
working to limit potential adverse effects
and secure major concessions in key
areas of the program. As a result, automotive recyclers retained the right to sell
every part of a vehicle turned in under
the program other than the engine block.
ARA also ensured that the end-of-life
vehicles were required to be reported to
the NMVTIS, and that those entities processing vehicles must do so in an environmentally responsible manner.
Five years later, analysis of how well
Cash for Clunkers achieved its two main
objectives remains mixed. Proponents, as
well as the Department of Transportation,
point out that the new vehicles purchased
under the program averaged over 60
percent better fuel economy than the
vehicles that were traded in.
Critics argue that it was not American
automakers that profited from the sales
incentive, but instead Japanese manufacturers that benefited. The National
Bureau of Economic Research published
the results of research conducted by
economists at Texas A&M University
demonstrating that the program depleted the auto industry of between $2.6 and
$4 billion, and that consumers using the
Cash for Clunkers rebate purchased less
expensive vehicles than those consumers
who purchased new vehicles outside of
the program. ■
Crossword Puzzle
By Murray Jackson
Across
1. ARA member’s inventory (4,5)
6. Tire-inflation abbreviation (1,1,1)
8. Grooved tire surface
9. Electric-starter inventor Kettering
10. Stick-shift topper
11. Squirter in fuel-delivery system
13. Used-car transaction
14. In winter, much-used dash control
17. Farmers’ daily drivers
19. BMW-made brand
22. Automotive wiring assembly
23. Collector-car collectors’ collectives
24. Auto-club service
25. Engine-cleansing motor-oil additive
Down
1. ‘01-’05 Pontiac with quirky styling
2. Steering-linkage components (3,4)
3. Wear items in disc-brake system
4. Indy activity
5. Driver’s lockout protection, perhaps (5,3)
6. ‘11 Honda mid-size SUV
7. Allstate or State Farm
12. Nickname for Ford’s ‘32-’54 V-8
13. Hand tool with distinctive sound
15. '11 Mazda compact SUV
16. Stereo station-selection button
18. Directional sign, sometimes
20. Road-map’s city-blowup section
21. ‘80 Citation, Phoenix or Omega (1,3)
Advertiser’s Index
Company ............................................................................................Website ....................................................Ad Pg. No.
AA Midwest........................................................................www.aamidwest.com ......................................................61
Alter Metal Recycling ..............................................www.altermetalrecycling.com ............................................48
Biz Unite ................................................................................www.bizunite.com ..........................................................11
Brock Supply ....................................................................www.brocksupply.com......................................................31
Buddy Automotive Innovations........................................www.buddyai.com ................................................34, 35
Car-Part.com ......................................................................www.car-part.com ....................................................C-4
Commercial Forms Recycler Supply......................www.commercialforms.com ..............................................47
Cosner Brothers Auto Parts Auction........................www.nichollsauction.com ..................................................57
CRUSH/S3 Software Solutions, LLC..................www.s3softwaresolutions.com ............................................38
Dorman Products, Inc. ..............................................www.dormanproducts.com ..................................................5
Duesmann & Hensel Recycling ........................................www.duerec.com ........................................................53
GM Consultants ............................................................................................................................................................28
Hollander, a Solera company ......................................www.hollanderparts.com................................................C-3
MarkingPenDepot.com ............................................www.markingpendepot.com..................................................6
Panhandle Converters..............................................www.panhandlecoverters.com..............................................57
Pemberton ......................................................................www.pembertoninc.com....................................................12
PGM of Texas....................................................................www.pgmoftexas.com........................................................7
PGM Recovery Systems ......................................www.pgmrecoverysystems.com ............................................27
Pinnacle Professional....................................................www.actual-systems.com..................................................26
Rebuilder’s Auto Supply ..................................................www.coresupply.com ......................................................13
SAS Forks..............................................................................www.sasforks.com ........................................................23
Sierra International Machinery ........................................www.sierraintl.com ........................................................21
SuperShear ........................................................................www.supershears.com ....................................................33
Techemet ............................................................................www.techemet.com ......................................................39
Toyota Tsusho America ....................................................www.taiamerica.com ......................................................17
United Recyclers Group ......................................................www.u-r-g.com........................................................C-2
Vander Haag’s, Inc...........................................................www.vanderhaags.com ....................................................65
Wells Fargo Business Insurance..........................www.wellsfargo.com/biz/insurance ..........................................15
Accepting 2015
Industry
Calendar Dates
SEND US YOUR DATES!
E-mail [email protected]
■ Visit
www.a-r-a.org to view all the
industry’s events and meetings. To
include your event in ARA’s calendar of events, e-mail the complete
listing to [email protected].
Get Ahead in 2015 To advertise, contact Caryn Smith at
(239) 225-6137 or e-mail [email protected].
STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION
1. Publication Title: Automotive Recycling 2. Publication Number: 1058-9376 3. Filing Date: September 30, 2014 4. Issue Frequency: Bi-monthly 5. Number of Issues Published Annually: Six 6. Annual Subscription Price: $40.00 7. Complete Mailing
Address of Known Office of Publication (not printer): Automotive Recyclers Association, 9113 Church St., Manassas, VA 201105456 8. Complete Mailing Address of Headquarters or General Business Office of Publisher (not printer): 9113 Church St., Manassas, VA 20110-5456 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher
(Name and Complete Mailing Address) Michael E. Wilson, 9113 Church St., Manassas, VA 20110-5456; Editor (Name and Complete
Mailing Address) Caryn Smith, 12901 Village Gate St., Ft. Myers, FL 33913 10. Owner: Automotive Recyclers Association, 9113
Church St., Manassas, VA 20110-5456 13. Publication Title: Automotive Recycling 14. Issue Date for Circulation Data Below:
September 11, 2014 15. Extent and Nature of Circulation: Average No. Copies Each Issue During Preceding 12 months: a. total
Number of Copies (net press run) 1600, b. Paid and/or Requested Circulation (Paid/Requested Outside-county Mail Subscriptions
Slated on Form 3541) 1483, c. Total Paid and/or Requested Circulation: 1334, d. Free Distribution by Mail (Outside County as
Slated on Form 3541): 40, e. Free Distribution Outside the Mail (carriers or other means): 140, f. Total Distribution: 1474, g. Copies
not Distributed: 9, h. Total: 1483, i. Percent Paid and/or Requested Circulation: 91%. Actual No. Copies of Single Issue Published
Nearest to Filing Date: a. Total Number of Copies (net press run) 1600, b. Paid and/or Requested Circulation (Paid/Requested
Outside-county Mail Subscriptions Slated on Form 3541) 1321, c. Total Paid and/or Requested Circulation: 1304, d. Free Distribution
by Mail (Outside County as Slated on Form 3541): 150, e. Free Distribution Outside the Mail (carriers or other means): 150, f. Total
Distribution: 1321, g. Copies not Distributed: 129, h. Total: 1600, i. Percent Paid and/or Requested Circulation: 90% 16. Publication
of Statement of Ownership will be printed in the November/December 2014 issue of this publication. 17. Signature and Title of
Editor, Publisher, Business Manager, or Owner: Michael E. Wilson, Managing Editor.
Puzzle Answers from page 60
Final Thoughts
By Michael E. Wilson, ARA Chief Executive Officer
[email protected]
Championing Green Recycled Parts®
I
n my last column, I focused on why professional automotive recyclers must
remain vigilant to help ensure that our
product does not get misrepresented. A
key step in this endeavor, and likewise a
critical component of ARA’s Strategic
Plan, is to secure better relationships with
the automakers themselves. In my final
column of the year, I am proud to say that
ARA discussions with automakers intensified in 2014 to include face-to-face meetings with companies such as General
Motors, Chrysler, American Honda,
Toyota, and Nissan. From these discussions, new opportunities, valuable followup dialogue, and significant action steps
are evolving that will shape many of our
Association activities heading into 2015
and build on our successes from this year.
ARA members know well that the utilization of recycled automotive parts
builds a strong customer base and promotes the environment all while using
parts identical to new OEM parts. Professional automotive recyclers provide a crucial link in the automotive parts supply
industry. Recycled automotive parts are
OEM parts, designed by the OEM, and
built to meet the automaker’s requirements for fit, finish, durability, reliability
and safety. As ARA emphasizes repeatedly
when your association leaders and staff
meet with industry stakeholders, recycled
parts are effectively the same parts, simply
distributed to consumers through a different channel – new versus used versions
of the same parts. Win-win scenarios exist
that are mutually beneficial to the automaker and professional automotive recycling communities.
As a result of one such meeting, ARA
was invited to speak about the current
state of the professional automotive recycling industry at the January 2015 Society
of Automotive Engineers (SAE) Government/Industry meeting scheduled in
Washington, D.C. Automakers have
ARA discussions with automakers intensified in 2014
to include face-to-face meetings with companies
such as General Motors, Chrysler,
American Honda, Toyota, and Nissan.
expressed interest in learning
future consumer access to ecothe types of parts that are
nomical and environmentaltypically removed for
ly beneficial OEM parts.
resale and what is curIn a recent study by the
We Proudly Sell
rently being done by
Chicago-area data analysis
the professional automocompany, Experian, the
tive recycling industry to
research found that con®
comply with state and fedsumers who owned their
eral regulations.
vehicle for 12 months had a
Another exciting develop57 percent brand loyalty. But
ment is an invitation for ARA
for consumers who owned their
to present at the upcoming
vehicle for 12 years, the loyalty
Automotive Industry Action
to the brand dropped to 34
Group (AIAG) Corporate Responpercent.
sibility Summit in April 2015. AIAG was
This is yet another instance where if
founded by Ford, Chrysler, and General
genuine, recycled OEM automotive parts
Motors as a not-for-profit organization.
were utilized more effectively, these parts
Membership has grown to include comcould help preserve the relationship that
panies such as Toyota, Honda, and Nissan,
automaker has with its current customer.
and many of their part suppliers and servIf priced correctly, a dealer can retain the
ices providers. ARA’s presentation, enticustomer and at the same time make
tled “Data Transparency as the Key for
money on service and parts. The longer a
Sustainability in Automotive ELVs,” will
dealer can keep the customer coming
provide an overview of the important link
back to their dealership, more interactions
between automakers and their role in the
with the customer will occur in the service
sustainable practice of harvesting parts
lane to promote new product, aiding in
for reutilization.
increased service revenue and repurchase
The presentation will also emphasize
loyalty.
preserving natural resources, diverting
In the new year, ARA will continue to
waste from landfills, along with a frank
aggressively reach out to automotive mandiscussion on our industry’s reutilization
ufacturers and pursue more comprehenof parts and the data needed to ensure
sive dialogue on areas of mutual collaboracompatibility and the future success of
tion. I believe that if events like the two
this mutually beneficial relationship.
mentioned above are any indication, this
Professional automotive recyclers must
outreach will provide for more opportusecure data access at equivalent levels
nities to open a number of additional
with other stakeholders in the automotive
doors for our industry and the increased
supply chain. This data is vital to ensure
utilization of recycled parts. ■
Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA

Automotive Recyclers Association ARA

Transcription

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