March 2011 - Asa Houston

Volume 26
A Publication of the Automotive Service Association – Houston, Texas
March 2011
INSIDE THIS ISSUE
Page 2
- 1099 Reporting Update
Page 3
- President’s Corner
- ASA Houston Officers
No. 3
March ASA Meeting
Tuesday, March 8, 2011
OUR NEW LOCATION
Spaghetti Warehouse
901 Commerce @ Travis
Free parking after 5 PM in adjacent lot close to the bayou
Page 5
- Franchise Tax
Call to Action
- FTC & Auto Warramties
Dinner 6:30 PM ($5.00)
Meeting 7:00 PM
sponsored by
Page 6
- Texas Legislature Phones
Page 7
- February Meeting Recap
Page 8
- Protect Yourself When
Buying Equipment
Page 10
- Your ASA At Work
Page 11
- ASA Associate Members
How To Find Us
Automotive Service Association
Houston Chapter
PO Box 925007
Houston, TX 77292-5007
Need info about ASA?
Call one of the board members on page 3
or contact Nancy Adkins,
ASA Event Coordinator
Phone: 713-695-5071
Fax: 713-694-7387
Myrl Artac
Sales Manager
Topic: The new generation of oils
J.A.M. Distributing Automotive Division services the lubricant
needs for Car Dealers, Quick Lubes including ExxonMobil’s “Mobil
1 Lube Express” sites, and independent Repair Shops. J.A.M. Distributing is the exclusive O.E.M. National Brand program supplier
for Ford Motorcraft, GM Goodwrench, Honda, Toyota, Mercedes
Benz, SAAB, KIA and Porsche.
ASA Houston - Shop Talk
March 2011
House Ways and Means Committee Approves Repeal
of 1099 Reporting Mandate (ASA Supported Repeal)
WASHINGTON, D.C., Feb. 17, 2011 – the U.S. House Ways and Means Committee approved two pieces of legislation,
H.R. 4, the “Small Business Paperwork Mandate Elimination Act of 2011,” and H.R. 705, the “Comprehensive 1099 Taxpayer
Protection and Repayment of Exchange Subsidy Overpayments Act of 2011,” which repeals the 1099 reporting mandate in the
new health care law.
The reporting mandate required small businesses to file a 1099 form with the IRS for every vendor they pay more than
$600 in a year, and created a heavy burden for small businesses through unnecessary paperwork that takes time, energy and
resources, instead of helping to create jobs.
Rep. Dave Camp, R-Mich., chairman of the U.S. House Ways and Means Committee, made the following statement during
the hearing:
“The legislation approved by the committee today is a victory for America’s small businesses, families and individuals.
Congress should make every effort to reduce the heavy burden of paperwork that takes time, energy and resources away from
creating jobs. Families and individuals who do something as common as rent out a room and either replace an appliance at
their rental property or pay a lawn service should not have to worry about the added headache of reporting that transaction to
the IRS.
To stay abreast of news from the ASA visit the Press Center at
http://www.asashop.org/news/news.htm
Page 2
ASA Houston - Shop Talk
President’s Corner
Hi everyone:
Well, if you’re reading this, I’m glad. If you came to last month’s meeting, I’m
proud! If you came to our board meeting to discuss the City of Houston’s draft of
8-22, I’m super proud! If you came to Austin on Automotive Industry Day for the
Franchise Tax, you’re a hero. If you did any two of these things or more, you need
to be on the ASA board next year.
Spring is the season of change. It is the time of renewal and our industry needs
it as much as Mother Nature. We face two major challenges on the local and state
level: tax discrimination and restrictive city licensing. While managing our businesses of course is our number one priority, we need each other more than ever to
be active in this Association. As our speaker Byron Rusk pointed out in February,
“Even the Lone Ranger had Tonto.” Thank goodness this Association is standing
tall and strong for your future.
At the City Council meeting, four business owners (Chuck Stasney of Aamco
Transmissions, John Ferrata of NLine Automotive, Chris Newhouse of Ray’s Electric, and Itzy Kariv of Itzy’s Auto Care) spoke on our behalf asking the Council to
involve the ASA before any city ordinances are changed. The Houston City Council agreed. Again, in Austin, 18 business owners from Houston covered the capitol
from one end to the other, talking to as many legislative aides and House Representatives as possible. By evening, we had word that HB 429 will be considered by
the Ways and Means Committee. Again, ASA shop owners like you took action,
invested time and spoke with passion. Our government listened and we were heard.
Thomas Jefferson wrote, “A nation of sheep produces of government of
wolves.” I don’t think he meant that government intentionally becomes the big bad
wolf. It happens when the nation doesn’t exercise its voice and doesn’t pay attention. People in government interpret passivity for consent. So let’s have more of
you speak up and pay attention! We’re much stronger as members of this Association than we are on our own. Don’t be a sheep. Spring is here. Let’s grow our
membership.
What can you do? First step, come to the meetings.
•
Get to know your fellow members.
•
Be active and stay involved.
•
Volunteer your time. There are lots of ways to help.
•
Participate on the board.
•
Renew your membership.
•
Bring shop owners who aren’t ASA members to the meeting. *
*We are having a spring time membership contest. Bring a guest to the March
meeting and be entered in a drawing to win a $100.00 gift card.
Our next meeting will focus on the new generation of oils. J.A.M. will be our
meeting sponsor at the Spaghetti Warehouse. It’s going to be a great meeting to
bring your service writers. We’ll see all of you on Tuesday, March 8.
Kathryn van der Pol
President ASA Houston
March 2011
2010-2011 ASA Houston Officers
President
Kathryn van der Pol
Adolf Hoepfl Garage
[email protected]
713-695-5071
Vice President
Robert Gruener
AutoTechtronics
[email protected]
Secretary
John Miller
Freedom Auto
[email protected]
281-850-5254
Treasurer
Erma Palmer
Auto’s R Us Collison Center
[email protected]
713-673-3050
Past President
Chris Newhouse
Ray’s Auto Electric
[email protected]
713-661-8189
Pres Elect
Kevin Spencer
A&B Auto Electric
[email protected]
713-928-3286
Education Liaison
Deanna Pate
San Jacinto College
[email protected]
Advisors to the Board
Betty Jo Young
Young’s Automotive
[email protected]
Glenn Young
Young’s Automotive
____________________________
Automotive Service Association
Houston Chapter
PO Box 925007
Houston, TX 77292-5007
ASA Newsletter Editor
Want to write an article or submit any
ideas for the newsletter?
Send information to:
Lynn Beckwith
Beckwith’s Car Care
[email protected]
281-540-2000
Page 3
ASA Houston - Shop Talk
March 2011
Peace of Mind Warranty
s#OVERSSERVICEANDREPAIRSFORMOS
ORMILES
s%XCLUSIVEBENElTS
s.ATIONWIDE7ARRANTY
s/VER9EARSOF%XPERIENCE
s(ONOREDBYMORETHANLOCATIONS
Another reason to become a NAPA Auto Care Center.
Contact Wayne Truax at 832-573-5826 for more information
Page 4
ASA Houston - Shop Talk
March 2011
ATTENTION:
Houston ASA Repair and Collision Businesses
We need your help! CALL your State Representative TODAY! Unite with us to help those
who are being hit so hard with their Franchise Taxes. Our day at the Capitol was very successful. Your call will help keep House Bill 429 in their minds.
If you do not know your Rep for your home and business, follow these steps:
•
•
•
•
Go to www.house.state.tx.us.gov
Put your cursor on “Members” and “Find Your Rep” will drop down. Click on it.
Enter your business address then click “Find Rep”. Scroll down to get past the U.S. Senator and Rep and get your State
Rep. We want to get this bill passed in the House then we’ll deal with our Senator. Do again for your home.
Look at the list of phone numbers on page 6 of this issue and call. It will take only a minute or two. Ask for the Representative’s Legislative Aid, if not available, give your message to anyone on the staff. Ask for your Rep to support
HB429, Fletcher/Howard bill, and then share your concerns (see below).
Points of concern:
Independent automotive repair businesses pay twice the Franchise tax rate as auto repair shops operated by new and used
car dealerships.
• Independent automotive repair businesses pay twice the Franchise tax rate as repair shops operated by tire companies,
ie, NTB, Firestone, Goodyear, Discount Tire; parts stores, ie, PepBoys; mass merchandisers, ie, Sears, Walmart.
• Skilled craftsmen in other trades, such as, electricians, plumbers, carpenters, and a/c repair are allowed to deduct their
cost of labor as Cost of Goods Sold, but the Independent automotive repair businesses ARE NOT. Independent automotive repair businesses can only deduct the cost of parts.
• These unequal treatments arose from the use of SIC Codes to classify our industry. SIC Codes was established in the
1930s as a way to compare business data, and not to classify businesses for tax purposes.
Remedy Sought:
•
•
•
Equalize the tax rate for all automotive repair to .5%
Place moratorium on Comptroller audits of our industry based on tax rate or COGS (Cost of Goods Sold) deductions
until the unequal taxation is addressed.
Reclassify our industry to allow the deduction of the direct labor costs as COGS, or an exemption of our industry from
SIC code I. This currently exists for computer software, film, recording and video tape industries.
Affected by the unequal tax: More than 11,000 independently owned repair shops in Texas employing more than
70,000 hard working citizens.
FTC Continues to Promote Automobile Warranty Awareness
The Federal Trade Commission (FTC), the federal government’s consumer protection agency, has released another
consumer alert to educate people on auto warranties and to ensure consumers get the most out of their warranties. The first
consumer alert was issued in December 2010, and was titled “Auto Warranties, Routine Maintenance and Repairs: Is Using
the Dealer a Must?” It focused on the provisions of the Magnuson-Moss Warranty Act and the protections it provides the
motoring public. In the most recent consumer alert, the FTC clarifies with consumers that it is illegal for manufacturers and
dealers to refuse a warranty or deny coverage to someone due to someone other than the dealer repairing their car.
The FTC offered the following example to clarify repairs for consumers: “If an independent mechanic improperly
replaced a belt and the engine is damaged as a result, a manufacturer or dealer may only deny responsibility for fixing the
engine under the warranty after demonstrating that the improper belt replacement - rather than some other defect - caused
the engine damage. However, the warranty would still be in effect for other parts of the car.”
The FTC website, www.FTC.gov, includes many tips for consumers. Encourage your customers to visit the site.
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ASA Houston - Shop Talk
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March 2011
ASA Houston - Shop Talk
March 2011
February Meeting Wrap-Up
In February, Jasper Engines & Transmissions sponsored our Chapter meeting. We had one of the highest attended meetings in recent times. Seventy-five business owners and associate members participated. Our featured speaker was Byron Rusk,
AAM, owner of RMS Auto Care and Master’s. He spoke on the “Top 10 Characteristics of High Performing Shops.” Here
they are:
1. Exercise Time Management
2. Attract & Retain Quality Team Members
3. Best Shops have Excellent Upstream and Downstream Communications with Team Members
4. The Value Systems of the Owner/Manager are Understood & Communicated
5. Genuine Empathy for People
6. Effective Marketing, Advertising & Networking
7. Embrace Accounting
8. Reinvest in Knowledge, Training, Your Facility, and Equipment
9. Strong Industry Involvement, ASA, Coaching, 20 Groups
10. Execution: Be Able to Take Action.
Some of the key points that Byron stressed that we need to step up the pace and encourage an appropriate sense of urgency
in our shop environment. He said, “I want a tech assigned three cars at once and knowing that they have cars waiting on them.
The most important car in the lot is the one waiting to be checked.”
He also said to always be recruiting and look to hire people who complement the strengths of your staff. If you want better
staff, look at your shop. Technicians care
about working conditions and car count.
Improve your shop’s work environment
and you’ll attract better people. Increase
your marketing budget and you’ll improve your car count and have happier
technicians.
As a business owner, Byron stressed
the importance of saving money and
reinvesting in the business, whether it’s
to purchase a new alignment machine or
painting the building. Establish a reserve
that you contribute to every month withCARQUEST Auto Parts is committed to
out fail. This way you’ll have the funds
providing unparalleled customer service,
to reinvest.
innovation and industry leadership.
Byron believes in being open to ideas
from your team and always looking for
ways to improve. He encouraged us to
Product
study leadership and great leaders.
Full line of OE or better product for domestic
He also reminded us that even though
and import applications.
we are “independent,” that does not
mean to go it alone. Byron said, “Even
Technology
the Lone Ranger had Tonto!” Being
Solutions that make business easier and
part of ASA gives you a network to help
more efficient.
form business alliances and support. It’s
important to spend time with those who
Training
truly understand the business. That’s why
World class training for technicians through
CARQUEST Technical Institute.
automotive coaching works. Get in the
Game! There was a lot of wisdom delivCustomer Service
ered from Byron’s 30 years of experience
Innovative solution-based services.
as a shop owner. You can e-mail questions and request a hand out at byron@
For more information on how CARQUEST can
rmsautocare.com.
help you, call:
ASA wishes to thank Byron for his
Dan Nieves, Regional Director of Sales Houston
thoughtful
in depth presentation, and we
CARQUEST Auto Parts
also thank David Eschbach of Jasper En3100 Hillcroft Ave. Houston, TX. 77057
(832)766-7160
gines and Transmissions for sponsoring
the meeting.
CARQUEST.com
LY
D
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O
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P
ER
S
ING
V
A WORLD
IN MOTION
Page 7
ASA Houston - Shop Talk
March 2011
How to Protect Yourself When Buying Equipment
by Ed Jones
Jones Auto and Marine
Lemon Laws only pertain to cars , not equipment or anything else you buy for your company. So be careful in your purchases and contracts with vendors. Don’t just sign on the dotted line as sometimes adding a simple statement in a contract can
protect your rights.
Most contracts are written by the supplier or vendor that you are purchasing from. They are designed to protect them, not
you.
One of the most important things to do is to limit the comprehensive nature of a contract by defining what constitutes default on behalf of the supplier. An example is:
“If product fails 3 times in 6 months, product should be replaced with new one. If it fails 2 times in next 3 months money
will be refunded or replaced per purchaser’s decision.”
This is just an example. You need to use the words that will protect you for the situation that you are getting involved in.
Remember if they wrote the contract it is designed to protect them – not you.
Another important issue to review is where disputes will be solved if they arise. Many contracts now stipulate where disputes will be handled. It used to be if you sell it to me in my county you fight me in my county and it still works that way if
not otherwise specified. The dilemma comes when your contract allows them to litigate it in their home county or state. This
can get really expensive for you. It is simple to modify the wording on this part of their contract, just in case you have problems in the future. If you don’t want to get a lawyer , just write it on there yourself.
Review all contracts.
Either hire an attorney or at least pay close attention yourself to any contract you sign. This includes uniform, dumpster,
equipment purchases, and any other piece of paper you plan to put your “John Hancock” on. Modify them as necessary to
protect yourself. Remember, most companies are pretty hungry for business and should be open to these simple clauses.
Take the time to read the contract and tell them to send you a copy days in advance of signing. If possible have an attorney
review anything too complex to understand quickly. Most importantly, READ THE SMALL PRINT!
Disclaimer: This article was not written by an attorney. It is not meant as legal counsel. Just simple ideas shared among
friends. For real legal advice – call an attorney!
I don’t know everything...
but my customers
expect me to.
O’Reilly Knows
If I don’t stay up-to-date in the latest vehicle
technology, I might as well close my doors.
I know that if I can’t get the vehicle repaired,
my customer will find someone who can.
That’s why I call O’Reilly Auto Parts for all
of my training needs. O’Reilly understands
my business and knows the importance of
professional technician training. Through
their Real World Training clinics, O’Reilly offers
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some of the nation’s best instructors. Quality
training is just one more reason why my first
call is to the parts pros at O’Reilly Auto Parts.
PROUDLY SERVING THE PROFESSIONAL SINCE 1957.
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ASA Houston - Shop Talk
March 2011
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ASA Houston - Shop Talk
March 2011
Your ASA at work
Anyone who has been paying attention at the Chapter meetings, reading their Shop Talk, or checking their emails from the
local association is aware of the drama that exploded unto the scene late last year regarding the Franchise Tax. On the 16th of
February we reached a milestone in our efforts to correct this serious inequity.
About 20 of our local shop owners joined together on the 16th to travel to Austin and meet with our elected representatives
to discuss the problem and find a solution. It was a great experience and gave those participating a good insight as to the workings of our State government.
Our local Chapter President, Kathryn van der Pol, and our Executive Secretary, Nancy Adkins organized the local effort by
recruiting members to travel to Austin with them and securing a Van for the trip. Charles Parker, our State Executive Director,
organized things in Austin by setting appointments with key legislators and providing maps and informational materials.
We met in the Capital Cafeteria before 8 AM and began the day by spending some time with the Houston Body Shop Association and the Automotive Parts and Service Association who had reserved a room to host legislators for breakfast. While
we weren’t there addressing the same topic we stressed our mutual support. During the day the impact of so many automotive
related participants became obvious.
We split our group into teams of 2 and 3 and assigned sections of the Capital complex to each team. If you have never been
through the Capital you would be amazed at the size and scope of the State House. If you look at the Capital Building what
you see is less than half of the legislative hub of our State. Underground to the North of the Grand Old Building is the majority of the functional Capital. Hundreds of offices, meeting rooms, cafeteria and auditorium space is buried peacefully beneath
the main building.
From early in the morning to late in the afternoon the halls, corridors and offices bustle with
people going about the State business or trying
to influence that business. We were but a few in a
steady stream of men and women scurrying from
office to office carrying a message important to
their industry or interest. At first it is possible to be
overwhelmed and doubtful of your chance to have
your message heard.
As our small team began to work we quickly
found that we were given an attentive reception
in every office. In some we were placed with the
legislator’s administrative aide specializing in tax
issues, in some with legislative assistants and in some with an intern, but in every case they paid respectful attention to our
presentation, took a lot of notes and accepted our hand out materials.
We often heard that the office was already aware of our issue, had heard of the sponsored bill we were supporting, or had
heard from constituents about the issue. It was uplifting to know that our efforts before making this trip had already begun to
produce results.
As we walked the halls we saw other groups doing the same thing. There was a group of Librarians passing out flash lights
and trying to prevent budget cuts for libraries. There was a group of Motor Carriers with bags of goodies to leave in each office. All we had to offer was a just cause, a simple solution and boisterous constituency.
During the day we made it a point to visit those legislators who had already come to our assistance. Alan Fletcher, Charlie
Howard and Dan Patrick all got a special visit and heartfelt thanks for their help.
We met in the cafeteria for lunch then continued our quest. By the end of the afternoon we had paid visits to more than 150
of the slightly more than 180 legislative offices. In only one case did we meet any opposition to our bill and in most cases we
received unqualified support. The expression most often heard by the legislative aides was, “This is pretty obviously wrong
and simple to fix.” Many said they would add the bill to their watch list.
We left Austin at 4 in the afternoon, tired but confident our efforts had helped. Later that evening we learned that HB 429
had been referred to Ways and Means. How much effect our efforts had on moving this bill to the next level is hard to tell, but
we are going to take credit for it!
There will be other hearings, and other requests to communicate with the legislators as this bill moves forward in the process. It is far from a done deal! Please help when your ASA contacts you asking for your support. If you can make the next trip
to Austin with us we would enjoy having you and the Independent Auto Service Industry would benefit from your time and help.
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ASA Houston - Shop Talk
March 2011
Houston ASA Associate Members
Contact your local ASA Houston Associate Members for products and services
Ask about ASA Member only discounts available from these Associate Members
AAA Texas
Steve van Winkle
8508 Hwy 6 North
Houston, TX 77095
713-284-6650
A-Line Auto Parts
Bobby Fulmer
7720 Blankenship
Houston, TX 77055
713-695-5355
Ask Patty
Jody DeVere
888-745-1928
askpatty.com
BG Products Lubrication Specialist
Dan Butler
713-686-2400
BAP-GEON
Tim Nuber
713-227-1544
CarQuest Auto Parts
David Burch
832-766-7160
Certified Business Brokers
Doug Ashby
832-239-9262
Farmer’s Insurance Group
Warren Spiwak
10068 Long Point Road
Houston, TX 77055
281-578-9922 FAX: 281-578-9912
[email protected]
Four Seasons Radiator
Carl Harris
713-266-2656
Great American Business Products
Julie Byer
713-744-7823
HCC - Automotive Technology
Carl Clark
713-718-8110
NAPA Auto Parts
Wayne Truax
281-999-8700
Hi-Tech Antifreeze Recylers
Rick Morton
713-433-3437
National Transmission
Rudy Ramkissoon
4420 Grigg Road
Houston, TX 77021
713-741-5344
[email protected]
O’Reilly Auto Parts
Jaydee Garrison
Art Rodriguez
Ken Allison
713-991-9299
Hunter Equipment Service
Scott Tischhauser
40 FM 1960 W., #384
Houston, TX 77090
281-844-7540
J.A.M. Distributing
Myrl Artac
7010 Mykawa Road
Houston, TX 77033
713-844-7797 FAX: 281-596-7590
Jasper Engines & Transmissions (*)
David Eschbach
6618 Petro Park Drive
Houston, TX 77041
800-827-7455 FAX: 812-634-1820
M&D (Magneto & Diesel)
Engine Parts-Fuel Injection-Turbochargers
Jim Garner
6931 Navigation Blvd.
Houston, TX 77011
713-923-2266
Main Auto Parts
Dale Heisler
2500 Center Street
Houston, TX 77007
713-869-7918
MCF USA
Andy Yim
6701 Harwin Dr, #220
Houston, TX 77036
832-356-6867
MTF Equipment
Jim Keeny
713-225-3262
Performance Radiator (*)
Paula Noto, Joe Alamia
4555 Airline Dr., Ste. 135
Houston, TX 77022
713-694-3032
Right Path Marketing, LCC
Mike Ratchford
301 Wells Fargo Drive, #11
Houston, TX 77090
281-537-8074 FAX: 281-866-0202
San Jacinto College
David Norman
281-476-1865
Shop Management RO Writer
Scooter Owens
281-377-3076
TransAct Merchant Solutions, Inc.
Joe Cherry
16211 Park Ten Place
Houston, TX 77084
832-446-1807 FAX: 832-446-1750
[email protected]
XL Parts
David Wofford
713-983-1116 FAX: 281-640-8499
Cell: 713-823-3879
(*) Denotes National Member
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ASA Houston - Shop Talk
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March 2011