TDTruck Dealer of the Year

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Volvo Trucks. Driving Success.
®
another sign of
outstanding performance.
Congratulations on being nominated for
Truck Dealer of the Year.
Once again, Volvo Truck dealers are well-represented on
the list of nominees for the 2013 ATD/Heavy Duty Trucking
Truck Dealer of the Year award. Todd Schaub exemplifies
Volvo Trucks’ commitment to excellence and we commend
each of the nominees for their exceptional performance.
©2013 Volvo Group North America, LLC
Todd Schaub
Dealer Principal
S & S Volvo
Lima, OH
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Growing
through
customer
service
ATD/HDT Truck Dealer
of the Year nominees talk about
growth, trends and taking
care of the customer.
The top executives and owners
from six truck dealerships across
the country were nominated by their
peers for the annual Truck Dealer
of the Year Award, presented by
American Truck Dealers and Heavy
Duty Trucking.
The award recognizes excellence
in business practices, industry leadership and community service. The
winner and finalist were chosen by a
panel of professors from Indiana University’s Kelley School of Business.
www.truckinginfo.com
Deborah Lockridge • Editor in Chief
A
s fleets keep trucks longer and truck dealers can no longer
rely on truck sales as the main driver of their business, leading dealers are growing, adding products and services, and
figuring out new ways to partner with truck owners and
better meet their needs.
A number of this year’s nominees for the American Truck
Dealers/Heavy Duty Trucking Truck Dealer of the Year took
advantage of the recession to actually grow their businesses.
Truck Dealer of the Year Andrew “Drew” Linn Jr., president and dealer principal of Southland International Trucks in
Homewood, Ala., bought his fifth location, in Huntsville, in
2007. He built a new body shop in 2009 and added trailer sales
and service in 2011.
“We’ve been able to build a new building every year for the last
four years,” he says. “We’ve done that to get better service for our
customers, providing more service bays and a better experience for
them while they’re here, and to give our employees a better place
to work.”
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Although that growth
has slowed some, he says,
Southland International plans
to expand to another part of the
state in 2014 and will do a major
refurbishment and expansion at one of its
existing locations this year.
Finalist Steve Bacalis says the recession weeded out some
of the weaker dealers.
“A lot of our competition has fallen by the wayside because they weren’t healthy enough to endure the recession,”
says Bacalis, president and CEO of Tom Nehl Truck Co. in
Jacksonville, Fla. The dealership recently added the Western
Star and the Detroit brands to its stable, which also includes
Freightliner, Sprinter, Volvo and Isuzu, plus Capacity of Texas
yard/spotter trucks.
The recession also helped halt the pattern of fleets trading in trucks every three or four years to the point where
there was such a large number of used trucks that some were
shipped overseas, he says.
“Many used trucks were shipped to Eastern Europe or
Asia, so we lost our parts business on those trucks,” he says.
Today, customers are keeping trucks longer, which may mean
fewer truck sales, but more parts and service business.
At Kenworth of South Louisiana, the boom in the shale
oil and gas business has helped triple gross revenues, assets
and number of employees since 2007, while profits on an annualized basis for 2012 were 20 times greater than 2007. The
dealership includes four full-service facilities, in Gray, Port
Allen, Harahan and Carencro, La.
2013
At S&S Volvo in Lima, Ohio, dealer principal Todd
Schaub has experienced great success the last several years
with an unusual long-term demonstrator program. After
completing the buy-out of the business, Schaub used some of
those extra funds to place four trucks into the dealer’s leasing
company. He lets potential customers use one of these trucks
free for a month if they agree to a few basic conditions, such
as running it with both the best and worst drivers in the fleet
and agreeing to an exit interview.
“In most circumstances, we determined that my product
was very similar [in fuel economy] to their existing product
for their 20% best drivers,” Schaub explains. “However, our
product was significantly statistically better for the other 80%
of their drivers.”
As a result, most of the exit interview meetings resulted in
at least a small order, with additional orders later on. Some
customers were so happy with the Volvos they decided to
replace their entire fleet – but they probably never would have
tried them if Schaub hadn’t deposited a free trial unit on their
doorsteps.
At Horwith Trucks, a Freightliner and Western Star dealer
in rural Northampton, Pa., CEO Sheila Horwith says sales
are picking up as fleets work to replace trucks they held on to
longer during the recession.
“Now they’re at a point where they don’t have much
option but to start updating, and concerns about the 2010
products are largely going away,” she says.
In addition, as the driver shortage gets worse, “part of the
reason for wanting to update their equipment is because it
does attract people,” Horwith says.
“I get a report on all our shops every morning on my
iPhone, on every job ticket that was written. I can
call a customer before he calls me if I see his truck
has something that needs to be done.”
Parts and service
Another big growth area has
been parts and service.
When asked what customers
are looking for from their dealer,
Bacalis says the big thing they are
looking for is parts – and Tom
Nehl Truck Co. delivers. Literally.
“We have over 200 people in
– Drew Linn, Southland International
our dealership, and half of our
people work for the parts depart“I think our greatest examples of progress or improvement,” he says. There are 10 trucks delivering parts every
ments have simply been the management of growth,” says
day, and the company opened two more branches during the
President Scott Oliphant. He believes the pursuit of nonrecession to be able to reach out to customers.
traditional growth opportunities “gives us a distinct advantage
“Across the board, all of our customers need parts, and
over our competitors.”
we’ve really invested in our parts department, our faciliThe company has a fabrication shop to upfit trucks with
ties, our warehouses, our inventory,” he says. “We added a
oilfield equipment, and heavy-duty wreckers, which keep
45,000-square-foot warehouse to be able to have the parts
engine and body repairs coming into the shops. The dealer ofcustomers need.”
fers trailers, leasing, and a used/rebuilt/salvage operation with a
Bacalis predicts dealers will continue to focus more on
full-time transmission and rear end rebuild shop.
providing parts and service, financing and insurance, than on
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www.truckinginfo.com
selling trucks.
“The main source of gross profit historically has been the
new and used truck department, particularly the new truck
department, but that’s not the case now,” he says. It’s the parts
department. “We still want to sell all the trucks we can sell,
but we’ve seen our market
shrink, and trucks last
longer. And I think that
trend will continue. I think
trucks will be built better,
they’ll last longer, we’ll
need to take care of them
longer, and we’ll be in a
unique position to take care of trucks.”
At four-dealership group Sioux City Truck Sales in Iowa,
President Brad Wilson says, “If customers aren’t going to buy
a lot of new trucks, the best thing we can do is provide the
services they need, especially parts.” Ten vehicles deliver parts
from a sizable parts inventory.
He also has been selling and building glider kits, something
that had become nearly non-existent until a few years ago.
ing efforts under way, they are limited to certain corridors and
certain parts of the country.
Horwith says a lack of fueling infrastructure will hold back
interest in natural gas trucks for her operation – even though
Pennsylvania is the site of a major shale gas region.
“Anyone can sell one of these things the first time.
The parts and service people keep them coming back.”
Natural gas
None of this year’s nominees is a big player in natural gas
trucks – at least not yet. But most are seeing interest from
customers and are preparing to be able to service trucks fueled
by compressed natural gas and liquefied natural gas.
Sioux City Truck Sales has sold one natural gas truck so
far. The customer hauls product for a fueling company that
has truckstops that are putting in natural gas, and set up a
deal to guarantee fuel prices because they wanted to have their
product hauled by a natural-gas-powered truck.
“It was a little bit of an eye-opener to bid and spec out,”
Wilson says. “The fuel tanks alone were $38,000.” Right now
the company is working outside if it has to service that and
some other natural gas trucks, but it’s investigating what’s
needed to upgrade the shop facilities.
At Southland International, Linn says they have seen some
interest but no orders yet. Nevertheless, “we think it’s coming,”
he says, and they’re getting ready to be able to provide service for
CNG and LNG trucks.
In Jacksonville, Bacalis says two of its largest customers, Winn-Dixie and Raven Transport, are both extremely
interested in adding natural gas trucks. The company already
has sold some natural gas trucks through Vac-Con, which
adds its custom-built sewer bodies to Tom Nehl chassis. Most
of those trucks, he says, were ordered by Vac-Con customers
in California, so his dealership hasn’t serviced any yet. But the
company is preparing to make changes in its bays so it can
service natural gas trucks.
One of the stumbling blocks to natural gas is the need for
a fueling infrastructure. While there are infrastructure-buildwww.truckinginfo.com
– Scott Oliphant, Kenworth of South Louisiana
Similarly, even in the oil and natural gas shale boom area
served by Kenworth of South Louisiana, Oliphant says, there
are a lot of questions about natural gas, but so far they have
not delivered a single truck.
“The very first question we ask our customer is, ‘Do you
have a fueling station or the capability of adding one on site
with the volume to make sense?’” Oliphant explains. “If the
answer is no, and more often than not it is, that ends the
conversation in my marketplace.”
In Lima, Ohio, S&S Volvo is also in the process of making
sure its bays and personnel are ready to service natural gas
trucks.
“While it certainly will never cover 100% of what we do
– I think we’d be lucky to get to 20% in long haul – it is a big
item,” Schaub says. “Anyone who hauls automotive freight
(a major customer base in his area), they are being leaned on
by their customers to have a certain percent of natural-gaspowered units.”
Technology
Whether it’s in the parts department, the shop, the back
office or the marketing department, technology is playing an
ever-larger role at a modern truck dealer.
Steve Bacalis compares what’s happening with technology and diagnosing trucks, including the Detroit Virtual
Technician system, to the Mayo Clinic, “where everything is
connected on the computer and the doctor has access to everything. Our customers and our mechanics are going to have
more access to more information more rapidly.”
At Sioux City Truck Sales, employees are using iPads to do
parts counts. A strap allows the user to hold it in one hand
while entering quantities with the other, right there standing
next to the parts bin, Wilson says.
And it’s not just technology in the shop. Drew Linn
says it’s been key to helping to effectively manage multiple
branches.
“With iPhones and iPads and computers, all the information we can receive has made it a lot easier for me,” he says. “I
get a report on all our shops every morning on my iPhone, on
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every job ticket that was
written. I can call a customer
before he calls me if I see his
truck has something that needs
to be done. We just ward off a lot of
problems. It keeps me in tune. Other
reports, daily sales – it’s just at my fingertips.”
2013
Finding and growing people
Finding technicians is a challenge, say most of the
nominees.
“We pretty much are growing our own technicians,”
says Wilson. “We work closely with our local community
colleges. At one store, the instructor that teaches diesel engines works for us in the summer to keep himself current.
Then we get a good shot at his best students.” Students
also work part-time as interns at Sioux City shops.
At Southland International, Linn says, their greatest
success in finding technicians and other employees is offering a bonus for current employees who recruit a new hire.
If the recruit doesn’t stay, they don’t get the bonus.
“If you need to make a decision,
make a decision. And if it was
the wrong one, we will try not to
make that the next time.”
WINNER
ANDREW G.
“DREW” LINN JR.
President
SOUTHLAND
INTERNATIONAL TRUCKS
HOMEWOOD, ALA.
International, IC Bus
– Todd Schaub, S&S Volvo
“The majority of people we’ve hired in the last four
or five years come from folks that are already here,” he
says. These people are more likely to fit into the corporate
culture and have realistic expectations because they know
people who are already working there. And it means the
existing staff is more likely to find that the new hires are
someone they like to work with.
Oliphant calls finding technicians a daily challenge.
“My general manager spends a substantial portion of his
week looking for and interviewing technicians,” he says.
The company recently started hiring candidates with mechanical aptitude and putting them through an on-premise
training program. New technicians are starting out in the
leasing company, where they handle more routine maintenance tasks. From there, those with the right potential will
be evaluated for moving into more challenging diagnostics
and repair duties and moved into the dealer shops.
“Anyone can sell one of these things the first time,”
Oliphant says. “The parts and service people keep them
coming back.”
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Coaching a
winning team
O
ne of eight children of a coal miner, Andrew “Drew”
Linn Jr. did not grow up with a plan to become one of
the country’s top truck dealers. In 1966, he needed
a job while studying business in college. His uncle told him
Birmingham (Ala.) International Harvester, where he worked, was
hiring. Linn started out as a janitor and stockman. The rest, as
they say, is history.
Today, a photo of an International Harvester Travelall that
hung in his boss’s office at that first dealership now hangs on
the wall at the headquarters of Linn’s dealership group, South-
www.truckinginfo.com
land International in Homewood, Ala.
Linn worked his way up through several International dealerships in Alabama and Florida, and then in 1977 became sales
manager of Tuscaloosa (Ala.) Truck & Equipment. In 1982, he
and a friend bought the dealership, with Linn becoming sole
owner four years later.
Southland International came into being in 1986, when
Linn became president of the International truck locations in
Homewood and Montgomery, Ala.
“I was the little dealership that bought the big dealership,”
he says with a grin.
The Decatur, Ala., location was added in 1990, and in 1997
Linn bought out Navistar’s ownership interest. In 2007, they
added Brazier International Trucks in Huntsville, built a new body
shop in 2009, and added trailer sales and service in 2011.
When you walk into the shop in Homewood, you can’t miss the
sign that says,“Southland’s Goal is 100% Customer Satisfaction.
If you are not satisfied with us in any way, I would like to talk
with you.”
Then it lists Linn’s work and home phone numbers.
In reality, Linn says, he has gotten very few calls over the
years, and he says that’s because of his people.
“Our people take care of the customers. The last thing they
want is for someone to call me. And they’re closer to the problem
than I am.”
Throughout our interview, Linn talked again and again about
his people, and how as his career has advanced, it has become
ever more rewarding to act as a mentor. The company invests a
lot in training and tries to promote from within.
Monthly half-day interactive “lunch and learn” sessions are
held for truck, bus, trailer and parts salespeople, as well as
department and upper level managers.
In its “Customer Focus Learning Center” room, the dealership can do both in-person and virtual training. Quarterly meetings are supplemented by monthly interactive webcasts.
As a resident of Tuscaloosa, home of the University of
Alabama, the college football national champions three of the
last four years, it’s probably natural that Linn turns to a sports
reference.
“I spend more and more of my time coaching all these
people, because the team’s getting bigger. I love the interaction with customers, but I love even more the interaction with
the people here. The older I get, the more gratifying it is to see
these people become successful.”
Southland has service managers who used to be technicians.
But realizing a great technician isn’t always a great manager,
Southland is giving some of its best techs a taste of that responsibility by having them be lead men in the shop in Homewood,
managing their teams’ time.
www.truckinginfo.com
“It all goes back to coaching at every level,” Linn says.
Just as in football, Linn also recognizes the importance of
special teams.
A major portion of Southland’s business comes through two
major truck equipment manufacturers who buy Southland trucks
in order to add their own specialty bodies. To better serve these
customers, Linn set up a team for each manufacturer, consisting
of account managers with in-depth specification knowledge,
a certified technician, and a logistics administrator to track
proposals, orders, order changes, etc.
“This team approach has allowed us to significantly increase
truck sales,” Linn says.“
Other major customers include municipalities, including
school bus sales, and medium-sized trucking companies. There’s
also a strong medium-duty base, he says, people who haul their
own products for their own businesses.
“That’s a good thing about being an International dealer,” he
says.“We have the whole gamut.”
“Our people take care of the
customers. The last thing they want
is for someone to call me.”
One not-so-good thing about being an International dealer
has been the uncertainty over Navistar’s ability to meet 2010
EPA emissions standards.
“We’re weathering the storm,” Linn says of Navistar’s
struggles.“Things are a lot better today. We can see the light
at the end of the tunnel. You’ve got to hand it to International;
they tried a solution that would be easiest for the customer. Now
we’re on to other things.”
As for the quality of existing International MaxxForce
engines, Linn admits there were some problems early on.“We’re
not having near the issues that we did,” he says.“So we think
we’ve turned the corner.”
The judges note that this is the second time in a decade Linn
has been nominated as Truck Dealer of the Year. He was nominated by Dick Ryan, president of Carolina International Trucks in
Columbia, S.C., and a former ATD/HDT Truck Dealer of the Year.
“Drew is a natural leader,” Ryan wrote in his nomination,
“someone who has the skill to lead others with a steady and
confident manner that is based on his respect for all people.”
“It’s not rocket science,” Linn says.“It’s just doing the right
thing.”
For a slide show showcasing Linn and his operations,
go to www.truckinginfo.com.
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Nevertheless, Oliphant says,
his dealership spends a lot of time
developing salespeople. And salespeople get a salary, not straight commission.
“It costs me more money, but one, we
keep salesmen during downtimes,” he says.
“Two, it allows them to make a longer-term decision for the customer, because they intend to stay
here a long time. Three, when there are problems that happen
after delivery, they take ownership of it.
“So I think at the end of the day, the customers have a
better experience because we have better salesmen.”
2013
Managing multiple branches
As dealerships grow into multi-location businesses, more
dealers are relying on technology and on empowering teams
to do the managing.
At Tom Nehl Truck Co., Bacalis says, computers are
helping to ensure greater consistency among locations.
Video cameras offer the head office real-time views of what’s
happening in various departments at other branches. The
company soon will add Skype video calling to help bring a
more personal touch to inter-branch relationships.
regular management training.
As a single-location dealer, Schaub hasn’t had to worry about
how to manage multiple locations – but not for long. He is having active discussions about acquiring other locations.
“It’s good for the manufacturer, it’s good for me,” he
says. “Things are pretty darn good here right now, but my
employees can pretty much run this place without me most of
the time.”
Like Linn and Wilson, Schaub believes in empowering his
employees rather than all decision-making having to come
through the top. He notes that he doesn’t have to ask anyone’s
permission to make a deal, “and all my employees are empowered to do the same thing. If you need to make a decision,
make a decision. And if it was the wrong one, we will try not
to make that the next time.”
Dealer diversification
Many successful dealers have not only been adding locations, but also have been adding more offerings beyond truck
sales and service, such as financing, leasing, adding trailer or
yard spotter sales.
“The only thing that’s grown faster than the dealerships
is my leasing company,” says Schaub. “Most businesses don’t
have a five-year plan, so you can
provide them with that option, even
though they pay a little more. And
once someone has had our product
and our service, it always segues into
more sales.” They’re also looking into
adding trailer lines.
Horwith recently added the MAC
– Brad Wilson, Sioux City Truck Sales
trailer line, “just to have a little bit
more to offer to our customers,” she
While Linn also credits technology for helping mansays. “Your overhead hasn’t changed, and all your expenses are
going up, so you need to diversify to continue to carry your
age his locations, the real key, he says, is people. Southland
International’s locations do not have general managers at each overhead,” she says.
dealership. Instead, the parts manager, service manager and
Southland International got into trailer sales a few years
office manager at each dealership work as a team.
ago, and is in the lease and rental business, the body shop
Brad Wilson at Sioux City Truck Sales doesn’t believe in
business and the school bus business.
“Sometimes you become your best customers,” Linn says,
general managers, either.
noting
that the 370-piece lease and rental business buys a lot
“We have a director of sales, and a director of parts and
of
parts
and service from the dealership. Same goes for the
service, that provide operations oversight for all locations,”
trailer
business.
he explains. “I believe we obtain more consistency in the way
“It also solidifies relationships” with customers, he says,
our stores operate. This makes our stores more responsive to
and
gives the dealership more opportunities to sell the same
the customer, and the customer likes dealing with decisioncustomers
more products and parts and service.
makers that can resolve issues on the spot.”
The customers’ experience is the responsibility of the
“If you had told me 10 years ago I would have 370 pieces
department managers, he explains. “We empowered those
of rental and lease equipment, I’d have said you were crazy,” he
department managers to handle problems. It’s not a ‘Mother
says. Yet it’s all intertwined. Today, he says, “a dealer that doesn’t
May I’ situation.” To help give them the tools they need,
have an active used truck department is missing out, and rental
managers from the four locations are brought together for
and lease are the same way.”
“If customers aren’t going to buy a lot of new
trucks, the best thing we can do is provide the
services they need, especially parts.”
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Continuous
improvement
I
n 1989, when Steve Bacalis took over majority ownership of
Tom Nehl Truck Co. in Jacksonville, Fla., the company had a
single location employing fewer than 60 people, with 38,000
square feet of facilities on 5 acres of land. Today, the company
employs more than 200 people in four locations with a total of
178,000 square feet of facilities on 27 acres of land.
“A lot of our competition has
fallen by the wayside because they
weren’t healthy enough to
endure the recession.”
Bacalis grew up in the business. His father, Gus Bacalis,
was one of the original truck salesmen when Tom Nehl founded
the dealership in 1958, and eventually became vice president.
He’s continuing that tradition today with a third generation, his
son and daughter, who are both part owners and work at the
company.
“I was fortunate to have my father, who continued to work in
the company until he reached the age of 80, teach me how to
sell trucks, and to have Tom Nehl, who was like a second father,
teach me how to lead a dealership,” he says.
The dealership pulls in transient parts and service customers with its locations on I-10 in Jacksonville and I-75 in Lake
City. Big local customers include CSX and Winn-Dixie, and
owner-operators pulling containers in and out of the Jacksonville ports also account for a good bit of business.
The dealership’s AOR, with an average of 400-700
heavy-duty truck sales per year, is not a large market, but the
company has always been profitable. It consistently has more
than 40% market share for new truck sales, Bacalis says, and
a 50%-plus market share for parts sales. It’s the only dealer in
the AOR with a 24-hour parts and service department.
The company took advantage of the recession and took over
the Western Star franchise and the Detroit Diesel business.
“We really benefited from the pruning that the recession
did. It pruned away a lot of our weaker competition,” Bacalis
says.“We were fortunate in being well capitalized. We could
afford to make some acquisitions during the height of the
recession.”
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FINALIST
Steve Bacalis
President & CEO
Tom Nehl Truck Co.
Jacksonville, Fla.
Freightliner, Western Star, Sprinter,
Volvo, Isuzu,Capacity of Texas
In 2010, Freightliner instituted a continuous
improvement program called Elite Support. Since then,
Bacalis says, 83 of Freightliner’s more than 600 dealer
locations have been certified as Elite Support Dealers.
Both of Tom Nehl’s Freightliner locations are Elite Support Certified, and Bacalis says it’s the only dealer in
the Freightliner network to have brought on a dedicated, full-time manager of continuous improvement.
One of the innovative improvements the company
made as part of the program was an electronic dispatch program giving its delivery people, outside parts
salesmen and mobile technicians GPS-enabled phones
and monitoring their locations throughout the day with
real-time tracking software. It has improved customer
service and saved about $150,000 because it allows
the company to deliver more parts using fewer people.
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Customer satisfaction
Over the years, fleets have often
complained about the lack of responsiveness from dealers, especially when it comes
to prompt repair. Today’s successful dealers are well aware
of that, and have taken significant steps to address customer
communication and satisfaction.
At Southland International, signs ask customers to call
owner Drew Linn – at work or at home – if they’re not 100%
satisfied. Linn says that rarely happens, but it’s part of an
overall culture of taking care of the customer.
Part of taking care of the customer includes training.
Southland has special “Customer Focus Learning Center”
training rooms at its location in Homewood and a new one
in Huntsville, which let the dealership train technicians,
walk drivers through fuel-efficient driving techniques or do
safety training.
“Part of the reason for [fleets]
wanting to update their equipment
is because it does attract people.”
– Sheila Horwith, Horwith Trucks
At Kenworth of South Louisiana, Oliphant says, the key
to dealing with customer problems is caring.
“If they have a problem, fix it,” he says. “Mistakes happen
all the time, and it’s the rare person who doesn’t understand
that – but it’s how you deal with it. Sometimes it can just be
as simple as communication.
“Most customers just want to know three things: What’s
wrong with it, how long it’s going to take to fix it, and how
much it will cost. You give them that information, and they
can make decisions.”
n
Nominees
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Sheila M. Horwith
CEO & Secretary
Horwith Trucks Inc.
Northampton, Pa.
Freightliner, Western Star
Todd Schaub
Dealer Principal
S&S Volvo
Lima, Ohio
Volvo, Isuzu, UD, GMC
Scott Oliphant
President
Kenworth of
South Louisiana
Gray, La.
Kenworth, Hino
Brad Wilson
President
Sioux City
Truck Sales
Sioux City, Iowa
Peterbilt
www.truckinginfo.com
CONGRATULATIONS DREW LINN,
SOUTHLAND INTERNATIONAL
ATD DEALER OF THE YEAR NOMINEE.
Like us at International Truck, Drew and his team
strongly believe that commitment to their customers is
their #1 priority. In fact, there’s a sign hanging on the
wall of all five locations that reads, “Southland’s goal is
100% customer satisfaction.” Between his Tuesday
tradition of devoting the entire day to building stronger
customer relationships, creating one of the first truck
driving schools in Alabama as well as being elected
Chairman of the Alabama Trucking Association, Drew
Linn is proof that great customer service starts with
the willingness to go the extra mile.
International Truck thanks Drew Linn and Southland
International Trucks, Inc. for continuing to put your
customers first.