Document 6463563

May/June 2013
The Texas Automotive Recycling Report
TARA’S 2013 BOARD OF DIRECTORS
Ronnie Patke, President
Parts Unlimited, Inc.
17511 Pearland Sites Rd
Pearland, TX 77584
Phone: (281) 489-0990
Fax: (281) 489-3111
Cheryll Lambright, Executive Director
TARA
P.O. Box 842084
Houston, Texas 77284-2084
Phone: (800) 710-8272
Fax: (713) 461-1515
James Cooley Jr., District 3 Director
Hi-Way Auto Parts
2808 Hwy 279
Brownwood, TX 76801
Phone: (800) 447-0611
Fax: (325) 646-5332
Bruce Ormand, Vice President
A1 Partsmart
PO Box 17998
Austin, TX 78760
Phone: (512)-243-2718
Fax: (512) 243-2850
“Hotrod” Banks, District 1 Director
Box Auto Salvage
4209 E Highway 80
Midland, TX 79706
Phone: (432) 683-9200
Fax: (432) 683-2048
Randy Cunningham, District 4 Director
Pick-N-Pull
11795 Applewhite Rd.
San Antonio, TX 78224
Phone: (210) 628-1856
Fax:(210) 628-1194
Donnie Patke, Sec./Treasurer
Parts Unlimited, Inc.
17511 Pearland Sites Rd.
Pearland, TX 77584
Phone: (281) 489-0990
Fax: (281) 489-3111
Barry Rubin, District 2 Director
American Auto Salvage Inc.
2567 Decatur Ave.
Ft. Worth, TX 76107
Phone: (817) 335-3328
Fax: (817) 335-2711
Email: [email protected]
Joe Luna, District 5 Director
Nissan Unlimted/Y.E.S Unlimted
7230 Senate Ave.
Houston, TX 77065
Phone: (832) 467-4400
Fax: (832) 467-4402
Tim Straney, Past President
Glenn’s Auto & Truck Parts
P.O. Box 925508
Houston, TX 77292
Phone: (713) 688-8905
Fax: (713) 681-5169
Publisher
TARA retains the services of R.J. McClellan, Inc. Newsletter
advertising opportunity inquiries should be directed to:
R. J. McClellan, Inc.
445 Broadway Avenue #500
Ron McClellan
St. Paul Park, MN 55071
Advertising Sales
Phone: 651-458-0089
Sheila Cain
Toll Free: 877-525-4589
Managing Editor
Fax: 651-458-0125
Ryan McClellan
Email: [email protected]
Layout & Design
Mike Kunkel, Director-at-Large
American Auto Salvage Inc.
2567 Decatur Ave.
Ft. Worth, TX 76107
Phone: (817) 335-3328
Fax: (817) 335-2711
Executive Director
Newsletter content and association membership
inquiries should be directed to:
Cheryll Lambright
TARA Executive Director
P.O. Box 842084
Houston, Texas 77284-2084
Phone: 800-710-TARA (8272)
Fax: 713-461-1515
Email: [email protected]
The Texas Automotive Recycling Report
The Texas Automotive Recycling Report is published six times per year for the Texas Automotive Recyclers Association. None of the material in this publication
necessarily reflects the opinion of TARA, its officers, directors, staff, members or it’s Publisher. Statements of fact and opinion are the responsibility of the author alone. Articles and letters suitable for publication will be published in the next scheduled newsletter as space permits. Articles may be edited for length.
Throughout this issue, trademarked names are used. Rather than place a trademark symbol in every occurrence of a trademarked name, we state we are
using the names only in an editorial fashion, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Mention of trade
names, commercial products, or techniques does not constitute endorsement or recommendation for use.
4
May/June 2013
ASSOCIATION NEWS
President’s Message
By: Ronnie Patke
National Motor Vehicle
Title Information System or
NMVTIS has we know it has
become a monthly task in our
business. NMVTIS was created to prevent or the reintroduction of stolen vehicles into
interstate commerce. The US
Department of Justice is responsible for the NMVTIS
operations, enforcement and penalties.
There are four approved third party data consolidators that collect and send your information to NMVTIS
right now. They are AAMVA, Audatex, Auto Data Direct and Insurance Services Office. Each one has dif-
ferent pricing and ways to collect the data. It is very
easy once you learn where to put in information needed in your system. The information NMVTIS requires
is the VIN, date the automobile was obtained, name
of individual or entity the vehicle was obtained, statement of whether the vehicle is crushed, parts, rebuilder
or export out of the United States. This information
needs to be provided every month.
We report to NMVTIS during the first week of the
month. It is simple and fast. It takes about ten minutes
to run the report and to send it to the data consolidators.
We get a receipt showing data consolidators accepted
the report. The next day we get an email showing a
report of vehicles sent and accepted by NMVTIS and
other list of the vehicles that were rejected. They usually have an invalid vin or and missing purchase from
entity. This is the most time consuming part for me,
but it is very important to go back and fix. If NMVTIS
rejected it has not been reported. Going back to find
what digit was wrong in the vin and adding the parts
that were put in the wrong field or just forgotten takes
time. I try my best to do those right away and send the
corrected information back right away.
The Department of Justice is starting to enforce
and give out penalties. We must report every thirty
days and all vehicles since March 1, 2009. According
to their website, www.vehiclehistory.gov the penalty is
$1000 per violation. For example if you didn’t report
100 vehicles that could be a $100,000 fine.
So if you are not reporting contact a data consolidator and start reporting. For any questions you can
contact your TARA district director or you can go to
the NMVTIS website www.vehiclehistory.gov.
May/June 2013
5
ASSOCIATION NEWS
A letter From the Executive Director
By: Cheryll Lambright
HOW TO KILL
THE SALE OF USED
TIRES!
Listen Up Everyone-----TARA is in a real battle! The
Texas Legislature is in session
and the Legislative Committee
and our Lobbyist, CJ Tredway
have been hammering the halls
of the Senate trying to control a runaway train called Senate Bill 459, referred to as the “Unsafe Tire” legislation. The
real title for this bill should be “How to Kill the Sale of Safe
Used Tires and Take Away Income!!!!” The bill is sponsored by Senator Rodriquez from El Paso and it is headed
for a vote in the Senate where it will likely pass and then
to the House Environmental Relations Committee. Bruce
Ormand has testified before the Senate as opposed to the
bill as has The Recycling Council of Texas. The big forces
pushing the bill are Goodyear and Liberty Tire. Goodyear
actually brought purchased “used tires” and displayed them
to the Senate Transportation Committee to prove that everyone in the state of Texas is selling unsafe used tires.
What started as a bill by Senator Rodriquez to regulate
the illegal disposal of scrap tires has now turned into a bonfire that could virtually shut down the sale of safe used tires.
The “safe used tire” specifications that Goodyear has so
prominently infused in the scrap tire disposal bill will single
handedly make the quantification of a “safe used tire” an unknown entity. “Unsafe Tire” provisions of bill SB 459 will
have negative impact on the legitimate Used Automotive
Parts Recyclers who provide a safe and low cost alternative
for millions of Texans that cannot afford expensive new
tires, while also keeping million of “good used tires” out of
landfills. TARA understands that this bill is driven by the
“consumer safety” manifesto and that we certainly are not
opposing consumer safety but our members have been
disposing of scrap tires reselling safe used tires for years
and are not the masked bandit that goes unregulated.
I realize that not every member of TARA sells used
tires, but a large majority of our recyclers do and find it a lucrative business. Placing this bill in statue will effectively cut
off a viable source of economic revenue for many recyclers
in an industry that has already been strapped repeatedly of
income producing inventory.
TARA will be continue trying to impede the progress
of this bill. Please monitor our website www.texasara.
com and check your emails to see how you can be active
in the grassroots actions by contacting your senator and
representatives. TARA will provide all the information and
contact numbers.
SB 459 is available for you to read on the
following link:
http://www.capitol.state.tx.us/tlodocs/83R/billtext/html/
SB00459I.htm
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6
May/June 2013
ASSOCIATION NEWS
TARA Legislative Update
By: Bruce Ormand
Greetings Everyone!
Hope all is going well with
you. I am always amazed at
new findings along life’s way
And how perception is almost
always reality in most peoples’
mind…. Thus being the case
with UAPR’s. We have discovered that most law enforcement
are not up to speed with who
UAPR’s are and who Salvage dealers are. I have spoken
with leaders from the Scrap industry and we are a mystery to them as well. As I spoke with one of the spokes
persons for the scrap industry, he told me that UAPR’s
supply probably 70 to 80 percent of the scrap bodies to
them annually. I was speaking with a gentleman from the
law enforcement and in our conversation he kept referring to UAPR’s as the bad guys, so I realized at that point
we, as an industry, have failed to embrace all the players
that are involved in our industry. Once we spent more
time conversing and I was able to explain what it took to
be licensed as a UAPR and what we had done to try and
protect the consumer, I could tell that his perception was
changing. Also I found that we share the same passion for
leveling the playing field for the legitimate businesses but
that they need help with meaningful legislative language
change to be able to actually stop the bad players in all
facets of the salvage business. The truth is that there are
over 8000 current licensed Salvage Dealers and UAPR’s
and the UAPR’s only make up 10 to 13 percent of that
number. Many of us hold multiple licenses and we need
to level the playing field in all of the various licensed salvage related businesses.
The other day one of oldest members of TARA asked
me what he could do to help out and I found myself not
knowing what to say. Not because we do not need help,
but realized we have not sufficiently armed our members
with enough information to know what can be done. As
always, we need as much financial support as we can get
but we need to reach out and have meaningful conversations to understand all party’s needs and concerns. Now, I
realize as much as the next guy how many hours that most
of us put in to keep our businesses
going but unless we start this journey
and embrace the changes we need to
make, then 5 years from now we will
still have the same old complaints. So
with all that being said, I want to let
you know that TARA is going to start
providing our members with the “infra-structure” so that when you meet
with DPS, Auto Theft, Scrap Dealers, Politicians and other people in
our industry we can help educate
them as to who we are and what
we do. We have a great story to tell
and we want to help our members
articulate this to all interested parties. Let’s start bragging ……. We
have a lot to brag about!
May/June 2013
7
ASSOCIATION NEWS
TARA PAC Fund
Donation Form
Your Association Needs Your
Help to Help You!
TARA Needs to be prepared for the 2013
legislative session. The TARA PAC fund has a
tremendous impact on Texas legislation affecting
the Texas automotive recyclers.
Name:_________________________________________
Company:______________________________________
Address:_______________________________________
_______________________________________________
_______________________________________________
Phone:_________________________________________
Fax:___________________________________________
Email:__________________________________________
Enclosed is my personal check, made payable to
TARA PAC in the amount of $___________________
PLEASE COMMIT TODAY!
Donations need to be made via personal check or
non-corporate check. Make funds to TARA PAC.
Please mail check and this completed form to:
TARA
PO Box 842084 Houston
TX 77284-2084
Phone: (800) 710-8272
Fax: 713-461-1515
TARA Legislative Fund
Donation Form
Make a difference in the TEXAS Automotive Recycling industry by donating to the TARA’s Legislative
Fund today. The Legislative Fund was created to help
supplement our state legislative initiatives that affect
the automotive recycling industry.
Your Contribution Helps to:
• Fight Harmful Legislation
• Represent the Texas Automotive Recycling Industry in Austin
• Track and Monitor Important Legislation
• Alert Member of Bills Affecting Your Industry
• Support Grassroots Efforts
• Fund Valuable Member Legislative Tools
and Resources
Name:________________________________________
Company:_____________________________________
Address:______________________________________
_____________________________________________
_____________________________________________
Phone:________________________________________
Fax:__________________________________________
Email:________________________________________
Enclosed is mycheck, made payable to TARA in the
amount of $___________________________________
Or please charge my Visa, MC, AM, Or Disc Card
Card #_______________________________________
Exp. Date____________ Authorization Code________
Billing Address if Different_______________________ _____________________________________________
_____________________________________________
Signature____________________________________
PLEASE Send this Completed Form to:
TARA
PO Box 842084
Houston, TX 77284-2084
Phone: (800) 710-8272
Fax: 713-461-1515
email: [email protected]
May/June 2013
8
ASSOCIATION NEWS
ARA Capitol Report
ARA Members Came to Washington,
D.C. for the Mid-Year Board Conference,
Hill Day and Legislative Summit
The annual Mid-Year Board Conference
and Hill Day, coupled this year with the Legislative Summit, took place on March 13 - 15.
Thank you to all who attend and to all of you that sent
photos or contributed in Committee meetings leading up
to this important event. Some of the highlights included
appearances by Members of Congress and Congressional
Staff Briefing presentations by ARA members.
Two Members of Congress came to ARA Hill Day
events, addressed participants as a group and spent time
answering questions. Before the group disbanded to attend the over 80 Congressional visits, ARA Second Vice
President/Treasurer Ricky Young introduced the senior
Senator from his state Richard Burr (R-NC) as the morning speaker. Senator Burr was in business operations for
17 years with a lawn products wholesaler prior to being
elected to public office and has a unique understanding
of small business issues. He discussed the on-going budget
debate from a real insider’s perspective, having been one
of the 12 Republican Senators that were invited to dinner
by the President during the previous week. While basically
optimistic that a budget “grand bargain” will be reached
at some future point in time, the Senator described the
frustration of negotiations and the critical need to address
the fiscal dilemma. Senator Burr is definitely a friend to
the professional automotive recycling industry.During the
luncheon portion of the Hill Day agenda in the Rayburn
House Office Building, Past ARA President Jim Watson
introduced a Congressman from his state, Representative
John Shimkus (R-IL). Last month, Rep. Shimkus visited
an ARA member in his district - Kelly Roepke of Y-Yards in
Effingham, Illinois. He has become very interested in the
professional automotive recycling industry because of that
visit and the fact that he is the Co-Chairman of the House
Recycling Caucus. The Congressman is also Chairman of
the House Energy and Commerce Committee’s Environment and the Economy Subcommittee. Rep. Shimkus has
in-depth knowledge of recycling issues and an interest in
working with ARA and its members, particularly
on environmental regulation issues.
Federal Issues
ARA Attends Water Quality Task Force
Meeting
ARA staff recently attended a Water Quality Task
Force Meeting at the National Association of Manufacturers (NAM). Attendees included business and association stakeholders who have operations under the
scope of Environmental Protection Agency (EPA) regulations. Issues discussed included updates on pending
rulemakings. The EPA stormwater rule continues to
be “refined” and EPA has said that it will not meet its
projected June date for publication of a proposed rule .
Another issue of interest is a draft letter by participants of this Task Force to the EPA Acting Administrator questioning the practice of “sue and settle” where
the Agency negotiates rulemaking schedules and other
concessions without allowing for public participation or
disclosure. The resulting consent decree from these
practices has the force of law which greatly impacts
regulated entities while at the same time disallowing
stakeholder input and participation. The draft letter, requesting transparency in lawsuits, is being circulated to a
wide group of businesses and associations and ARA will
scrutinize the language prior to becoming a signatory.
ARA Signs Onto Coalition Letter Supporting
Bipartisan Bill to Repeal the Health Insurance Tax
U.S. Congressmen Charles Boustany (R-LA) and
Jim Matheson (D-UT) have introduced HR 763 “The
Jobs and Premium Protection Act” which would eliminate the health insurance tax enacted last year as part
of the Patient Protection and Affordable Care Act
(PPACA). Boustany sponsored the bill in the last Congress and gathered 226 cosponsors, but it never came
up for a vote. Matheson co-sponsored the bill last
year, but was not listed as an original cosponsor.
The bill is once again supported by the “Stop the
Hit” Coalition which includes the National Federation of
Independent Business (NFIB), U.S. Chamber of Com-
May/June 2013
9
ASSOCIATION NEWS
merce and other business groups including the ARA.
The Coalition sent a letter of support to the Congressmen just hours after the bill’s introduction, which states
that this hidden and punitive tax will fall solely on the
fully insured market, which is the market from which 87
percent of small business owners purchase insurance for
their employees and themselves. ARA included this
issue in the talking points for congressional visits during
the ARA Hill Day on Thursday, March 14 and is following up on requests to cosponsor the bill
U.S. Senators John Barrasso (R-WY) and Orrin Hatch
(R-UT) recently introduced S. 603 with 11 cosponsors. It
is the companion bill to HR 763 entitled, “The Jobs and
Premium Protection Act”. In addition to cosponsoring
the Senate version of the bill, Senator Mike Crapo (R-ID)
offered an amendment to the continuing budget resolution during the debate on the Senate floor right before the
Spring recess that called for the repeal of the taxes in the
PPACA. Not surprisingly, the amendment failed by a vote
of 54-45 along party lines. Senator Crapo also met per-
sonally with ARA member Martin Bright during Hill Day
and discussed the problems with Obamacare at length.
U.S. Senate Shows Support for Internet Sales
Tax Initiative
During debate over the FY 2014 Budget immediately prior to the Congressional recess, the U.S. Senate
passed a non-binding resolution (S. Amendment 578
to Senate Resolution 8) approving the latest version of
an internet sales tax collection bill. The vote of 75 24 was purely symbolic but showed strong bipartisan
support for giving states more power to collect sales
taxes on purchases made by its residents on out-ofstate, or remote, internet sales. In the latest version of
the legislation, sponsored by Senators Richard Durbin
(D-IL), Enzi (R-WY) and Lamar Alexander (R-TN), online businesses with less than $1 million in annual sales
would be exempted from having to collect the taxes.
ARA has tracked this issue over the past year and works
closely with the U.S. Chamber of Commerce who recently
adopted guiding principles which would need to be met to
May/June 2013
10
ASSOCIATION NEWS
garner their full support on these initiatives. The Chamber
still has concerns in specific areas including liability, dispute
resolution and vendor compensation and will only support
the legislation if it addresses the ease with which businesses
can comply, the issue of not expanding or overlapping on
reporting authorities for other state taxes and the avoidance
of industry specific burdens or penalties. The Chamber
has previously worked directly with Senate staff on crafting this legislation and is awaiting another meeting to voice
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its business concerns. A Senate floor vote on the actual
legislation, S. 336, the “Marketplace Fairness Act of 2013”,
is expected at some point later this year. There is a House
companion, H.R. 684, sponsored by Rep. Steve Womack
(R-AR) but action in the House has not yet been determined. The Senate measure currently has 28 cosponsors
and the House bill has 47 cosponsors.
ARA Members Convene for 6th Annual Legislative Summit
ARA members representing 25 states met in Washington, D.C. on March 15 for the 6th annual Legislative Summit. The Summit, first initiated in 2008 by
ARA Past-President Sandy Blalock, focuses on state
legislative issues impacting the professional automotive
recycling industry. The Summit brings together leaders
from ARA state affiliate chapters to share information,
prioritize legislative issues, and create strategies for a
cohesive grassroots advocacy policy within the states.
This year attendees spent the morning hearing from
their colleagues in California about a new law requiring
anyone other than licensed dismantlers, dealers, repairers and scrap metal processors who purchase salvage
vehicles to pay sales tax at the time of purchase. Auto
recyclers from New Mexico, Ohio and Michigan spoke
about their efforts to keep BID card and other licensing requirements in place for salvage vehicle purchases.
Initiatives to incorporate and enforce NMVTIS reporting through state statute were discussed in case studies from Texas, New Mexico, Mississippi and Alabama.
Auto recyclers from Iowa and Georgia spoke about
the important implications of scrap metal bills for the
industry, highlighting recent examples from their states.
Summit attendees spent the second part of the day
in small group break-out sessions organized by geographic
region, where they had the opportunity to dialogue with
colleagues from neighboring states and discuss the political climate for each of the four legislative topics as well as
identify any regional trends or themes. Information from
each region was then shared with the entire group, including specific opportunities for pursuing legislative action this
year. This year’s Summit also focused on states without established state associations and/or ARA affiliate chapters,
and attendees discussed specific outreach efforts to automotive recyclers in those states.
May/June 2013
11
ASSOCIATION NEWS
Playing the Technology Card
Making It Work For You
By: Michelle Keadle-Taylor
You’ve heard it all before. The automotive industry’s number one gripe is that it is becoming very difficult to obtain quality salvage — thanks to the Internet.
You’ve also heard that in order to expand your business and stay competitive as we go into the future,
you’ll need to embrace the age of technology and use
it to your advantage.
Whether you see technology and its constant
changes as a friend or a foe, it’s here to stay. So, you
might as well make it work to your advantage and increase your business. That’s exactly what Tom’s Foreign
Auto Parts in Waterbury, Connecticut has done.
Wednesday, May 8, 2013 will mark ten years since
Tom’s Foreign Auto Parts began using eBay and over the
years they have learned how to use the Internet and social
media sites to greatly enhance their business. In fact, eBay
has become their biggest outlet for used parts sales on the
Internet and will continue to be so in the future according
to Jim Eitvydas, President, Tom’s Foreign Auto Parts.
“We are always looking for new ways to sell more
parts in more places,” said Eitvydas, “Our future depends on technology and Internet sales. More and
more, do-it-yourself customers and shops are using the
Internet to find parts. We will make sure that we are
where they look when they are looking.”
Not one to shy away from technology and the endless opportunities it offers, Eitvydas started using eBay
ten years ago. His wife, Diane, started their eBay business by selling owners’ manuals on it. They sold over
700 owners’ manuals in the first year alone and realized they were on to something. After two years, they
hired an employee to work full-time on eBay. That
employee, Dan Tole, E-Commerce Manager for Tom’s
Foreign Auto Parts, joined the team and has been expanding the opportunities (along with two other employees) for e-commerce ever since.
“Jimmy hired me when I was about 22 years old,”
explained Tole. “I had worked on and off at Tom’s For-
eign Auto Parts as a teenager. My father had known
Jimmy when they were younger and also worked here
part-time. When Jimmy hired me I had been working
at a parts store, building computers and selling on eBay
myself. Between Jimmy and myself, I don’t think there
has ever been a time we have been afraid to try something new in regards to the Internet or technology.”
One of the ways that Tom’s Foreign Auto Parts
makes technology work for them is to use it to automate repetitive tasks such as pictures, YouTube videos,
updating online inventory, modifying inventory, making price changes, and more. They use custom programs for inventory, ordering, and narrating videos of
all of their parts vehicles.
“Why waste time doing tasks computers can do for
us?” asked Eitvydas. “We find that by using these custom programs, it helps us to sell more parts.“
“Our most used custom program is for images,” said
Tole. “We are able to use wireless cameras and bar coding
to take pictures and automatically upload them into our
inventory system as well as onto multiple market places.
We knew that having pictures of every part was becoming extremely important, but the time to manually rename
them and move them around our network was a bottle
neck for us. Now we make it a point to take a minimum
of three images of every part our staff handles. Pictures sell
parts online. It allows us to set customer expectation before
the sale by showing them exactly what they are getting.
Tole says that video has also become important to
their online customers. They take a narrated video of
every car they inventory and post it to YouTube. Then,
they use a custom program to log the YouTube embedded codes so that they can automatically insert them into
part listings around the Internet. According to Tole, they
currently have over 3,000 videos on YouTube and are
just weeks away from hitting one million video views.
Posting videos to YouTube evolved as their eBay
business expanded. “As our eBay business grew we
May/June 2013
12
ASSOCIATION NEWS
started to look for more opportunities to reach our customers online and describe our parts better,” said Tole.
“Sales-wise eBay is the biggest outlet for used parts
for us and will continue to be for the foreseeable future,”
said Eitvydas. “Amazon is the fastest growing Internet
site but offers a lot of challenges for used parts. It’s been
good for us, but on a much smaller scale. Craigslist has
helped us get a lot of local traffic and allows us to link
directly to our Web site. It has to be used in moderation
though, to keep from getting posts pulled or banned.
“I think for anyone wanting to increase the way
they use the Internet for sales, I would encourage them
to not be afraid of trying new smaller market places as
you find them,” says Eitvydas “Ultimately creating your
own e-commerce site has the best long term benefits.
Our own e-commerce Web site Tom’sForeign.com has
been extremely successful. We sell exactly the same
parts on that site as we sell on eBay and Amazon.
“In order to have you own successful e-commerce
Web site you must be willing to put effort into it. This
ASA
ASL
doesn’t mean building a site with a few pages and using a different company’s dynamic look to make yours
look interesting. The best results will be from a fullfledged e-commerce site, rich with updated content.
Content is the key to getting your site found online.”
As technology changes, there are more and more
opportunities for recyclers to attract potential business.
Yet, although it offers exciting and endless opportunities, many recyclers may find that they are still reluctant
to take the time to make it really work for them or they
simply may not be sure how to maximize technology
to increase their profits.
The team at Tom’s Foreign Auto Parts has learned
that a key to maximizing their presence on the Internet
is diversification. They have put their business on all
the social media sites they can. They have created an
e-commerce Web site that provides fresh content and
is updated regularly. They also are on eBay, Amazon,
Craigslist and any other social media site they can find.
“You have to work social media,” said Eitvydas. “Used
Amarillo
Lubbock
ASW
Auction Systems
Wichita Falls
ASP
Abilene
Providing quality services to both buyers and sellers since 1978.
Lubbock - ASL
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Phone: 806-744-1922
Address: 4415 Idalou Rd
Phone: 806-622-1322
Address: 11150 FM 1541
Auctions Held Every Other Monday 10am
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Website: www.texassalvagepools.com
Auctions Held Every Other Monday After Wichita Falls
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Abilene - ASA
Wichita Falls - ASW
Phone: 325-675-0699
Address: 7700 US Hwy 277
Phone: 940-723-7416
Address: 3119 Windthorst Rd
Auctions Held Every Other Thursday
Abilene, TX 79601
Website: www.texassalvagepools.com
AAuctions Held Every Other Monday W/Amarillo 9:30 am
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Website: www.texassalvagepools.com
Live & Real Time Internet Auctions!
Actions Held Every Monday and Thursday
See Website for Times & Locations Call Any Location For More Information
May/June 2013
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ASSOCIATION NEWS
parts are not exciting, but you have to find ways to make
your business exciting and interesting to your followers.
Give them a reason to follow you. Be consistent and deliver content to your customers daily. No online marketplace is a ‘set it and forget it’ deal. It constantly needs to be
monitored, added to, revamped, and updated.”
The Internet thrives on fresh content, suggests Eitvydas. “Having a dynamic parts search will not get you
traffic, but fresh content will. You also cannot rely on
just eBay or your Web site alone. What would happen
if one of them was to fail? Would you be out of business? You have to look at all new market places and
figure out which ones you can adapt to your business.”
Another way to diversify your presence to customers
and keep providing updated and fresh content is by
producing a weekly e-mail newsletter.
You might ask, how do you make your parts sound
exciting? Tole admits that there really “aren’t any ways
to make OEM parts exciting,” but they have devised
various other ways to attract potential customers. For
example, they try asking their followers questions about
their cars or about their opinions on hot news topics.
They post funny pictures and videos to get people’s
attention. They have found that videos of cars being
crushed and other parts of the auto recycling operation
are interesting to people and attract many viewers.
“I guess the point is to not flood people with ads
about an alternator sale,” said Tole. “It’s important to
engage and interact with your customers so that when
they do need something your name will be on their
mind. Make social feeds valuable to them so they keep
reading and don’t ignore you.”
So, for yards wanting to really start using technology
in a more effective way, where’s the best place to start?
“The good news is that these things can be accomplished by any size salvage yard provided they use
technology to simplify it,” said Eitvydas. “I would encourage you to embrace it and don’t run from it. Start
to work it into your staff’s daily processes. For most
yards, starting on eBay and growing from there will be
the most feasible path.”
According to Eitvydas, it is vital to get everyone in
the business – from the employee taking inventory to
customer service staff to the employee working in the
yard – to take ownership of your e-commerce business
or it will not work.
“There are several important parts to making your
e-commerce business successful,” says Eitvydas. “First,
it’s important that every employee owns it and sees
the value of your e-commerce business. We accomplish
this by keeping the lines of communication open and
showing our employees the benefits and results of using e-commerce.
“Another important part of e-commerce is setting
customer expectations and delivering on what is promised. Be transparent, offer a good warranty and make
it easy for customers to send parts back. Make sure
that every customer is happy no matter what it takes.
The last thing you want is bad feedback, bad reviews,
or negative talk about your business on social media
outlets. Those are things that can negatively affect your
internet presence.”
Eitvydas feels that as social media goes, the number
one place to start is on Facebook because it’s free, it’s
easy and your customers are probably already using it.
“I would encourage auto recyclers to create a fan
page for your business and keep it updated,” he said.
“It takes no time to post a status update and by posting
things like questions for your followers, a funny image,
news, or even a coupon, you will prompt people to
interact with you on a more personal level. This shows
that your business has a personality. Social media is
a great path for growth in the future. Will your business go under for not doing it? No, but it’s free, easy,
and puts you in front of customers every day so why
wouldn’t you use it?”
You may say to yourself, this all sounds good but I
still have no idea how to navigate my way around all
this technology.
Tole offers the following advice: “The only way to
learn technology is to start using it,” said Tole. “I would
suggest starting slowly and doing things one by one.
Don’t try to take on the whole world all at once. It’s ok
to make mistakes and ask others for guidance. Many
sites and off the shelf software offer help sections and
how-to write ups. eBay, for example, makes it easy for
a complete Internet novice to list items, yet still offers
tools for advanced users. This allows you to start small,
May/June 2013
14
ASSOCIATION NEWS
learn the system and then step into more advanced
selling when you are ready.
“It can take as much time as the yard wants it to.
It really depends on how far they want to go and how
fast they pick it up. There are too many variables to say
it will take ‘x’ amount of time every day. At the end of
the day, the sales and customer satisfaction will reflect
the time that is put into it.”
Tips To Getting the Most out of your Technology
• If you aren’t tech savvy, start slowly but start
using technology. Don’t be afraid to ask advice
and to learn from mistakes. Approach one aspect of technology at a time.
• Make a conscious effort to use technology in
your daily processes such as with inventory, ordering, videos of your inventory etc.
• Build your eBay business.
•
Start to diversify your presence on social media
sites, Amazon, Craigslist, etc. The best place to
start is with Facebook. Create a fan page for
your business and post something that would
interest your viewers daily.
• Give your business personality through your
posts that encourage personal interaction with
your customers. Examples of this include, funny
images, questions posed to your followers, videos
of the more interesting aspects of your business.
• Jim Eitvydas recommends checking out the
following links: Internet Retailers Conference,
www.irce.internetretailers.com and Channel
Advisor conference, www.channeladvisor.com.
Michelle Keadle-Taylor is a freelance writer based in
Northern Virginia.
Reprinted with permission of ARA
ASSOCIATE MEMBERS
American Cat Con, Inc.
Phone: (512) 295-4659
American Cat Con, Inc.
Car-Part.com
Phone: (859) 344-1925
Eagle Auction Pool
Neely, Craig & Walton, LLP
Phone: (806) 376-6301
Proler Crushing
Phone: (713) 295-4659
Phone: (409) 866-0700
Phone: (713) 226-8000
Auction Systems of Amarillo
Hollander, A Solera Company
Rio Battery Company
Phone: 800-825-0644 Ext. 2449
Phone: (210) 225-4746
Auto Data Direct, Inc.
James Environmental Management, Inc.
Salvage Direct - Houston
Phone: (512) 244-3631
Phone: (814)758-7975
Phone: (806) 622-1322
Phone: (512) 281-6867
Lamb Fuels, Inc.
Texas Port Recycling
Phone: (214) 426-6449
Phone: (619) 421-0805
Phone: (713) 921-5549
Brock Supply Co.
Legend Smelting and Recycling, Inc.
Waymer & Associates Insurance
Agency
Bishop International
Phone: (800) 528-4400
Phone: (800) 697-5556
LKQ CORPORATION
Phone: (830) 620-5152
Government Affiars
Phone: 954-492-9092
BE SURE TO CONSIDER OUR ASSOCIATE MEMBERS FIRST FOR YOUR BUSINESS NEEDS VISIT OUR WEBSITE FOR FULL CONTACT INFORMATION
www.texasara.com
Report Unlicensed Recyclers File Complaint with TDLR at:
https://www.license.state.tx.us/Complaints/
May/June 2013
15
ASSOCIATION NEWS
Remember the Good Old Days
Remember when your state association meeting was
a GREAT TIME that was filled with networking, fun and
most importantly, gaining knowledge that lead to a sales
spike when everyone went back home? The age of digital communication redefines the term networking but the
one thing that is still needed is the knowledge. Our industry is continually looking for people that can do the job.
Why not come to this year’s state association meeting and
see how easy it will be to recover your investment?
We will have the bulk of the meeting at AMERICAN
AUTO SALVAGE , Ft. Worth, Texas, where there will be
multiple training sessions for sales people and managers.
There will also be a large cook out to cap off a fantastic day!
One of the hot topics of the day is distribution
networks. The ability to sell someone else’s
parts and PROFIT from doing it is paramount to
success now. Allowing the people selling the
parts to build relationships with each other while
learning how to increase their sales to the end
user will return the investment almost overnight.
James Junior- Hi-Way Brownwood- -District Three Director
Our goal in hosting the meeting is to provide
a location that allows hands on training that
will benefit everyone who comes. We are
constantly trying to get people to prosper
at their jobs and the classes and things
scheduled are going to provide GREAT VALUE
for everyone attending. We are really looking
forward to a great day of fun and learning.
Mike Kunkel – American Auto Salvage- -Director-At- Large
An event at a yard that is providing a solid
educational program for salespeople and managers
that has a trade show built around it is a great
idea. The vendors and attendees get quality time
and learn things that improve their performance.
That is a lot of BANG for a small investment.
Barry Rubin – American Auto Salvage- -District Two Director
October 11-12, 2013
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May/June 2013
17
INDUSTRY NEWS
Tech Knowledge
By: Andrew MacDonald
A Case of Range Anxiety – Battery Recycling These Days
I recently returned from an ARA meeting in Fort
Myers, Florida. Not only was my plane delayed to a 3
a.m. arrival time, but my luggage got lost and when I
got to my car the gas gauge read empty and
the dash said I had zero kilometer range left. I remembered that 5 days prior, tight for time, I had driven
with zero kilometers left about ten kilometers. I also realized that at this late hour, the nearest gas station was
not for at least another ten kilometers. It’s at this point
I start wondering how much fuel is actually left in the
tank and how much energy I would be able to extract
from that fuel. This concept is known as Energy Density. It’s how much energy is in a given volume of “stuff.”
Now for traditional combustion engines, the “stuff” is
gasoline or diesel, and the magic number is 10. You
can get about 10 kWh for every liter of fuel you have.
When it comes to electric vehicle batteries, energy density is the main reason they are taking so long to come
to market. The more efficient Nickel Metal Hydride
(NiMH) batteries only get about 0.2kWh for every liter
of material (only 1 – 2% of gasoline!).
Most hybrid vehicles to date use NiMH batteries.
Some of the newer electric vehicles on the market
(such as the Canadian made Rav4 EV) use lithium ion
batteries which can have upwards of 0.4 kWh, still only
a fraction of the energy storage available in gasoline.
Despite this, there is still a lot of energy and risk for
people working with these batteries. Getting burned
by only 1% of your gas tank is still a pretty bad burn;
batteries have the same amount of energy but in the
form of 273V electricity.
Core Questions
The main questions we are tackling in the ARA
Technical Advisory Committee are: 1) How do
you safely de-power the batteries? 2) How do you
dismantle the vehicles safely? 3) How do you test
the battery to know if it’s good to sell for resale
or repurposing? 4) What are the safe shipping and
handling procedures? and 5) Who will buy the
materials for recycling (hopefully at a profit)?First,
there are available resources for first responders on
how to identify where the components of hybrid
vehicles can be found (battery, motor, capacitor,
high voltage cables, etc.) and how to quickly cut
the power. I have two apps on my phone – QRG
from the National Alternative Fuels Training Consortium, and Extricate from Moditech Rescue Solutions – both have detailed schematics for all makes
and models.
The dismantling question is not as easy to answer.
ARA’s Hybrid Vehicle Dismantling Guide details many
May/June 2013
18
INDUSTRY NEWS
makes and models with safety procedures for dismantling. OEMs such as Toyota have set up a Web site
(https://techinfo.toyota.com) with information on how
to safely disassemble Toyota hybrid vehicles. GM has
gone a step further on www.recyclemybattery.com by
including the disabling/dismantling information, and
recommendations for storage, shipping, and handling.
Testing the battery to know if it’s good to sell for resale
or repurposing is, well, currently expensive. There is
some equipment on the market that can tell you the
state of health, charge, and de-power GRX-5100 EV/
HEV Battery Service Tool that can de-power, balance,
and charge the batteries. It comes with many adapters
for various vehicle connections.
The problem in the auto recycling industry is that
we usually don’t receive vehicles in good working order. How can we safely remove the battery and test it
as a stand-alone unit for things like remaining charge,
capacity, and number of remaining charge cycles? All
of these items would tell us whether the battery is good
for reuse or repurposing, or whether to sell it to a scrap
recycler. Shipping and handling is currently being addressed by the OEMs in collaboration with the battery
recycling companies and the ARA. Considerable factors are battery shelf life, proper storage temperatures,
and is there a minimum charge, just to name a few.
Powering Up Profit
So what does all of this have to do with energy
density? It is one of the reasons why recycling hybrid
and EV batteries may prove difficult to make profitable – let alone financially neutral. Low energy density
means batteries are big and heavy. Given their sheer
size and weight, shipping them to a battery recycling
processor can be very expensive. Another issue may
be the materials themselves. The “M” in NiMH stands
for metal, which is a compound of a rare earth mixture and nickel, cobalt, manganese and/or aluminum.
These materials have value that should be able to be
recycled for a profit. Lithium-ion batteries contain a
lithium compound; lithium is a plentiful resource and
therefore not worth as much on the open market The
ARA will continue to work with the OEMs and battery
recycling industry to figure out all the best practices.
Ideally we’d all like to turn a profit on them. Oh, in
case you were wondering about the end of my story, I
made it to the gas station, and eventually home, but I
sure didn’t make it to work on Monday.
Andrew MacDonald is an owner of Maritime Auto Parts,
and Chair of ARA’s Technical AdvisoryCommittee. Formerly,
from 2007-2010 he worked with Toyota in Quality Control
Engineering on the Toyota Rav-4 at TMMC-Canada.
Reprinted with permission of ARA
ARA Direct Salvage Acquisition
ARADirect is a subsidiary of ARA Product Services, LLC.
ARADirect is the newest source for salvage and
damaged vehicles for the automotive recycling industry.
There is no cost to you to sign up - the benefit
to you is gaining the ability to bid on and secure the
vehicles you need to continue to grow your business.
Membership on the site is for professionals within
the automotive recycling industry. ARADirect is the
solution for salvage acquisition for members of ARA
and affiliated automotive recycling associations.
ARADirect, in conjunction with the Automotive
Recyclers Association (ARA) global membership and
partnership with Alteso Group, provides ARA members and the automotive recycling industry multiple
options within the platform to address opportunities
with various insurance companies, wholesalers, fleets,
franchise dealers and others in a manner that significantly changes the means by which members’ vehicle
acquisition demands can be met.
For more information contact us at [email protected].
Reprinted With Permission of ARA
TARA
Fighting for the Rights of Automotive Recyclers
Since 1965
Date:___________________
PRIMARY Yard Name:________________________________________________________________________
Address:______________________________________________________________________________________________
City: ________________________________County:______________________ State:______________ ZIP Code:__________
Business Phone: (
)________________________________ FAX: (
)___________________________________
E-Mail: _____________________________________________Web site: __________________________________________
Company Owner/Manager: ____________________________________Title: _____________________________________
TDLR Used Auto Parts Recycler’s License No: _________________________________________ Expiration: ____________
TCEQ Storm Water Permit Number: ______________________________________________________________________
Specify Company Type:
r Sole Proprietorship
r Partnership/Type__________________________
r Corporation/Type_______________ r Other/Type____________________________
ADDITIONAL Yard Name:_____________________________________________________________________
Address: _____________________________________________________________________________________________
City: ________________________________County:______________________ State:______________ ZIP Code:__________
Business Phone: (
)________________________________ FAX: (
) __________________________________
E-Mail: _____________________________________________ Web site: __________________________________________
Company Owner/Manager: ____________________________________Title: _____________________________________
TDLR Used Auto Parts Recycler’s License No.: _________________________________________ Expiration: ____________
TCEQ Storm Water Permit Number: ________________________________________________________________
Please indicate category below:
r Direct Primary Member $325.00 per year
r Additional Yard(s) $100.00 per yard/per year
r Associate Member $325.00 per year
r Affiliate Member $325.00 per year
Please attach information for all additional yards
Payment Information
r Check Enclosed (payable to TARA)
r Master Card
r Visa
r Discover
r American Express
r Automatic Monthly Credit Card Payment: $28.50 per month (Payment includes a $1.42 a monthly credit card processing fee for a total of $342 annually. Charges will continue on a monthly basis and membership will automatically renew
unless written notice of cancellation is received 30 days prior to monthly charge.)
Please complete automatic authorization form if paying by credit card
Card # _____________________________________ Verification Code:______________Expiration Date:_______________
PRINT Name of Cardholder:____________________________________________________________________________
Signature of Cardholder:________________________________________________________________________________
I pledge that my company will do everything in its power to comply with all laws and regulations regarding the
automotive and dismantling industry. If there is a law or regulation that is unjust, I will work with TARA and within the
system to correct it. I will operate my business to make a profit. I will treat the public fairly in all dealings. I will work
diligently to improve the image of the automotive dismantling industry and support fellow recyclers and TARA efforts.
I understand and agree that this membership is not transferable, and any association sign, emblem or other insignia
issued to me is done so on a lease basis while a member is in good standing.
The undersigned hereby applies for membership in the Texas Automotive Recyclers Association and agrees to be bound by its
bylaws accordingly. By-Laws are available at www.texasara.com
Signature: ________________________________________________________________Date:_____________________
Title:____________________________________________________________________
MEMBERSHIP APPLICATION For Texas Automotive Recyclers Association
(PLEASE PRINT)
Return to:
TARA
c/o Cheryll Lambright
PO Box 842084
Houston,TX 77284
TEL: 800-710-8272 • FAX:713-461-1515
www.texasara.com
[email protected]
20
May/June 2013
INDUSTRY NEWS
Your TARA Membership Saves YOU Money on Grainger
By: Michelle Keadle-Taylor
Did you know that as a TARA member you can automatically save lots of money by accessing Grainger through
the BizUnite? The best part is that there is no catch to
get the savings – it’s free as an added benefit of TARA
membership. Since TARA is an Affiliate Chapter
of ARA, all TARA members are eligible for this
benefit and many more from BizUnite
As Michelle Keadle-Taylor, points out in Plugged In
article in the ARA Recycling Magazine: “BizUnite was
established in 2007 as a division of CCA Global Partners. BizUnite was founded to provide their cooperative
members with discounted services. They then began
offering their services to any cooperative or association
that fits their member-centric business model, comprised of four core industries, including the automotive
industry. BizUnite partnered with ARA in 2010 to offer
ARA members and its affiliate chapters access to global
discounts on all kind of products and services through
the Automotive Recyclers Association Marketplace. BizUnite’s focus is to offer core programs, such as Grainger
whose product line has expanded to more than 1 million
products and repair parts, that will benefit ARA members
the most. Grainger is one of the most popular benefit
offerings from the ARA Marketplace on BizUnite. “The
average ARA member who is enrolled in the Grainger
program is spending approximately $2,500 per year,” said
Veronica Pratt, BizUnite Member Services Representative.
“They would have spent considerably more without the
program discounts. It’s a highly adopted program among
ARA members and 75% of the ARA members who are
signed up for this program use it regularly.”
Grainger offers products that keep businesses running
smoothly, including lighting, motors, cleaning supplies, material handling, hand and power tools, security and safety,
pumps, electrical, and now a complete line of fasteners and
fleet and vehicle maintenance products. The program offers ARA members: • A 5% discount on all Grainger catalog items. • Substantial savings for all members, no matter
what your business size or segment. • Hundreds of items
with additional discounts including seasonal items and com-
monly purchased office and break room supplies. • Free
standard shipping on stocked, catalog items. Free standard
ground freight; other charges apply for other freight services such as expedited delivery, sourced products, shipments
to outside U.S. or other special handling by the carrier.
“The exciting part about the Grainger program is that
ARA members (TARA members) don’t have to do anything except contact me to enroll and they will get additional savings,” said Pratt. “Some of the best benefits are
the immediate savings on shipping that ARA members will
experience. If a recycler is using various companies such as
Grainger and their competitors to fulfill their supplies, they
will find that by using Grainger for all their supplies, they
will experience substantial savings through this program.”
In addition to the savings received from discounts and
free shipping, Grainger offers the following benefits: • Next
Day Shipping – Available on 99% of all orders, those received by 4 p.m. are shipped the following day. • 24/7
Emergency service. • One stop sourcing program for all
your maintenance, repair, and operations (MRO) Parts and
Supplies. • 420 local branches. • Dedicated team of Local
Brand Managers and Specialists for all your questions and
requirements.
Grainger offers additional resources such as energy savings and sustainability programs, inventory management, a
comprehensive safety program and a Web site that makes
one-stop shopping and ordering fast and easy. “It’s important to note that our program with Grainger offers exclusive
discounts to ARA members that are not offered to other
businesses,” said Pratt. “If an ARA member already has an
account with Grainger, all they have to do is provide me
with their business and account information and I will have
Grainger link them to the discounted program. If a member doesn’t have a Grainger account, we can set them up
with one and then they will have access to all the savings
too. The only thing ARA members have to do is contact
me at [email protected] or call me at (603) 628-2337.”
Michelle Keadle-Taylor is a freelance writer based in
Northern Virginia.
Reprinted With Permission of ARA
TARA0513
The Texas Automotive Recycling Report
RJ McClellan, Inc.
445 Broadway Avenue #5
St. Paul Park, MN 55071
Change Service Requested
PRESORTED
STANDARD
U.S. POSTAGE
PAID
Twin Cities, MN
Permit No. 7911