I know that this was covered briefly in our tips and tricks section of the newsletter this month, but after reading that I thought this is a topic that needs further discussion.

As professionals we need to know what vehicle we are working on, and what details may be pertinent to the product we are going to order. For example; if you were ordering a spoiler for 2010 Dodge Charger, you need to know the paint color, and code. It is not enough to tell us: “it is red, they only make one red on the Charger, just paint it that color.”

While that answers seems ALMOST logical, there are things that you may not know: 1. What if the car was really a 2009, you assumed it was 2010, and in 2009 they used a completely different red color. 2. The factory changed the code and color of red during the production year. 3. The vehicle is a special “limited edition” that has a special color that was only offered on a few select cars.

Another example that came up the other day: a customer called to order a grille for a 2007 Silverado. We asked if it was the new body style or the “classic” style. The answer we got: “It is a 2007, they changed the truck in 2007, they are all the same.” Based on this answer we sent a grille out for the all-new Silverado. Guess what - it didn’t fit. Why?? It was a “Classic” model of Silverado, which means it was the OLD body style. The customer thought he knew the whole story and made an assumption that was wrong.

The point that I am trying to make is this: know what you are working with, know the facts about the vehicle, and know the pertinent details. With a little experience you learn what you need to know. After you have ordered a couple of sets of rocker panels, you learn that you need to know things like whether the truck has moldings or flares, what style cab it is, long-bed or short-bed, and on and on. Or when ordering door handles you need to know if the vehicle has a passenger side keyhole or if it has keyless entry.

All these details may seem irrelevant or inconsequential. Sometimes we even need to know things that you may assume has nothing to do with the product you are ordering. Some grilles, for example, only fit on 4x4 model trucks, and when we ask those questions knowing the answer can save you time and money.

So what is my point to all of this? Get your ducks in a row, make a vehicle spec sheet that you can fill out on every vehicle you work on. Have areas that designate questions you should know about the vehicle. Things that may not even seem the least bit interesting or relevant. While it may take you an extra minute or two to fill out this sheet, it can save you tons of time and money. Especially if you order the wrong item, have to wait a few extra days to do the job, and have an upset customer in the process.

Nobody wins in those situations.

Doug Jacobs

I have been doing these articles for over a year now, and I think this is the first time I have officially covered and a Rant, Rave and Rumbling in one article. And believe it or not it is not based on business, but football.

Yes, it is that time of the year again, time for football. While I do not get caught up in all the high school football hub-bub that goes on in Ohio and Texas, I do enjoy College ball, and pro-football can be interesting. (If you are not a fan of the Cincinnati Bengals - more on that later)

First for my Rave:

For those that do not know this, I am huge fan of the University of Cincinnati Bearcats. In fact there are several huge Bearcat fans in the company. After the incredible season they had last year, winning the Big East championship and going to the Orange Bowl, it appears that the rest of the country has become fans of the Bearcats. In fact they have made a National Holiday for their opening game against Big East rival Rutgers, so that the rest of the country can enjoy the prowess of the Bearcats! Tune into ESPN at 4pm Monday!

It is great to be able to enjoy the spectacle of College Football. Where players put it all on the line for an opportunity to play at the next level. Where they are not paid millions, but truly play for the love of the game. Only if we could bring pro-sports back to that level.

Now for my Rant:

As a life-long resident of Cincinnati, I have the unfortunate position of being a fan of the Cincinnati Bengals. I firmly believe that one should always root for your home town teams, so rooting for some other more successful team is not an option. As a business owner I totally understand the business case that is the Bengals. They make a ton of money putting a mediocre product on the field. Spending more on better talent is not going to return that much more to the bottom line. The NFL is structured so that these philosophies pay out – big time.

On the other hand, as a competitive person, I just cannot comprehend how a business owner can be happy making money, but not being at the top of his game. For years, I have taken much more pride in being able to provide the best service possible, with the best inventory, and the most knowledgeable staff. We have sacrificed greater profit to provide services to our customers to help them be more profitable. That to me is winning in our field of competition.

Now my Rumbling:

Give me a College Football playoff. No more of this BS that is the BCS. Only by beating the best teams in the country can you call yourself “National Champion”, not by “backing into” a hand picked “National Championship Game.” Enough said.

Doug Jacobs

I know it is very hard to understand this but we are BOTH in business to make a profit. Yep, that is right, both you and me work hard to deliver a service, not out of the goodness of our hearts, but to make money doing it. But, what I have been trying to figure out for a long time now, is why is your profit more important than mine? And I do not mean you specifically, but metaphorically.

In business we all have a position in the chain. In our relationship, I am the supplier, and you are the customer. But think about what I am saying, and I am certain you can look further down the chain and see the same things happen to you when you are the supplier and you are dealing with a customer. Everyone wants to pass the burden of cost up the chain, while maintaining their profits.

Let me give you some examples -

The other day a customer called in and had an issue - we had sent him a spoiler for a Ford Fusion, when he clearly had ordered one for a Focus. He was irate about the problem and needed a new spoiler shipped to him Next Day Air!! He had a very upset customer, and he was going to lose the dealership if we didn’t fix his problem ASAP. The freight alone would have COST us over $100.

We proceeded to look into the issue. We pulled the recording of the original call, and listened to it. In this case, we did NOT make the mistake. The customer mistakenly said Fusion when he meant Focus. Still, he maintained that we had made a mistake and we had to eat the Next Day Air freight. We sent him an email of the call recording, which he listened to and then called back a few minutes later. However, this time the call was different.

Now, he accepted the fact that he made the mistake, and suddenly, the spoiler could wait to be installed in 2 days, not tomorrow, like was demanded of us. It is amazing to me that when the burden of cost is transferred the urgency declines.

In a different case; we had a customer who demanded we drop our price on some custom name decals we made for him. We had charged him 75¢ each, and he felt this was way too expensive. “The vinyl only costs a few cents” he explained. He told us to take them back or he would take his business elsewhere. I then proceeded to ask him a simple question: How much do you charge to put these decals on the car? His response; $5 for the pair. So I explained to him, that the most profit I could make on these decals, if the materials were free, the labor were free, and the equipment to make them were free, is $1.50. He was making $3.50 in gross profit, with none of those expenses.

I then asked him what was a fair price to pay for these decals. I told him I would sell them to him at that price, but he had to split the profit on his sale with me. He quickly dropped the issue.

I understand the self-preserving philosophy behind these examples, but I really begin to wonder why we do this. Is it because we can? Because the customer always has the power to take their business elsewhere, and reminds you of that many times when an issue arises? Is it because the “big” company can afford to eat this expense much more easily than the “small” company can? Or is there some other intrinsic human quality (fault??) that makes us do this?

This issue is evident everywhere you go. Pay attention to people, the things they do for a “Freebie.” I witnessed a lady return a 10 year old ceiling fan to Home Depot “because it quit working.” Or the couple who got the “Never Ending Pasta Bowl™” at Olive Garden. Then asked for more breadsticks, and another bowl of salad. They had the audacity to ask for a to-go box for the “Left-Overs.”

These are trying economic times, and we all are working to find ways to save a penny, or cut our costs. But we all need to be viable businesses. You can’t expect your supplier, or favorite restaurant, to be there for you in the future if you don’t treat their profits with as much respect as you treat your own.

Doug Jacobs

I am certain that all of us, at one time or another, have done something that they were told not to do. We may have gotten away with it, experiencing little or no consequence. Then again - we may not have been so lucky, and had been the recipient of the dreaded “I told you so.”

I, for one, did this many times growing up. It is not that I did not want to listen to my advice giver, it is just that I thought I knew better, or that I had a better way to do things. The funny thing is, as we grow older our roles change; from the recipient of this advice to the person who is giving it. Those of us who are parents understand and flinch at the times when you realize you are saying things or acting just like your parents did.

No matter the age, you still may be given this type of “advice” through rules and policies that you must follow at work. Even as a business owner, you know there are things that you shouldn’t do, or “can’t” do because of the consequences. You also know that there are plenty of “grown ups” who NEVER want to listen to your advice or policies.

What everyone has to understand is that rules and policies are there to provide you “advice” to get your job done in the most consistent and efficient manner. They come from years of doing your job and finding the problems and solutions. It may not always seem like the most logical way, but more than likely there is a reason. Shortcuts almost never pan out, they may save you time now, but many times they cause more work in the future.

The reality is all of this advice comes from EXPERIENCE. Parents, teachers, coaches, bosses - they all have experienced things that allow them to do their job and pass on the best way for you to succeed. You may have a “better way” or good ideas to help your team succeed, but ignoring the rules and doing it your way is not the proper method. Pass your suggestions on, let the person in charge evaluate it, let them meld your idea with their experience, and you might be surprised at the result!

Doug Jacobs

I am certain that many of think the topic for this month's Rants and Raves sounds a little far reaching judging by the news we hear everyday: GM and Chrysler in Bankruptcy, Thousands of dealers being shut down, thousands of people laid off. But the reality is that there are opportunities for all of us in this type of market.

First, every dealer that is still in business is trying to sell cars. They need all the help they can get. This has traditionally been the job of the professional restyler. Dressing up their vehicles helps them sell a more desirable product. But more importantly, accessories help them boost their profits. We all know they need that. Your opportunity lies in conveying this exact message to your customer base. If you can SHOW them how they can add to their bottom-line with the services and accessories you sell you become an invaluable resource to them in these trying times.

Furthermore, as the number of dealers decreases, the stronger ones left standing will only get stronger. It is a classic example of "Survival of the fittest," and you need to be getting your piece of that remaining pie. You may have never done business with these dealers, but you need to be. You need to go out and sell your company, products, services, and even more importantly; yourself. Keep in mind that the guy who was servicing them may not be around anymore, or he has his head buried so far in the sand that he isn't out helping his dealers make money. He may be so dejected he is not even calling on these customers. You need to seize these opportunities.

The biggest thing you need is optimism. If you keep your outlook optimistic you will convey this to your customers. We get enough negativity in the news everyday, the dealers are getting from their customers, and the manufactures. IF you come in with a brighter attitude you can help them be positive. If your customer has that extra bit of positivity it just may turn into business for you.

I agree this isn't the best time to be in an automotive related business, but we all need to seize the opportunities to maintain and secure our businesses. Imagine if you can survive in this market what kind of position you are going to be in when the market returns to post-recession levels! Trust me, it will be worth all the effort you put in now. Think of this as an investment in the future of your business.
 
Doug Jacobs

As a business owner you come to expect that the only one who can get the job done is your self. The old saying “if you want something done right, do it yourself”, is how most small business owners feel. I am certain this comes from starting from scratch and growing the business up. It is your pride and joy, and your blood sweat and tears that you have put into the business. YOUR reputation is on the line, not that of the people that work for you, and consequently we all become a bit overprotective of what we have toiled so hard to build.

Over the past month or so, I was given an opportunity to step back and gain some perspective. To look at our business and my employees from a different point of view. About a month and half ago I was very ill. I was dealing with high fevers and the accompanying sweats and chills that come with them. The doctor says it was the Flu and I tried like hell to work through it. After three weeks of the “Flu” my wife finally convinced the doctor that there was something else wrong and they admitted me to the hospital.

During my stay they ran a battery of tests and finally found the culprit, an abscess the size of a small orange inside my liver. Little did I know how dangerous this was, and had it ruptured I wouldn’t be here today writing this. But they found it, drained it and now I am on the road to recovery. The hardest part of this whole thing has been the 3 weeks of work I missed. Those who know me, and those who have worked with me for years, know that I don’t miss work. “Sick Day” does not exist in my vocabulary.

The point of all this is not ask for your sympathy or thoughts and prayers. They are appreciated but not at all the point of this rant. The point is that the entire time I was sick, and the week I spent in the hospital, Restylers’ Choice ran jut like it does when I am there. The managers stepped up and made the decisions I would normally make, the other employees showed up and did their jobs. The company kept humming along. I was bothered rather infrequently when a manager needed some input or some help on a sticky issue, but all-in-all I was astounded.

What this time away gave me was some much needed perspective. I know now, that I can focus on the big picture items, the new projects, the products, the new services we want to offer. I can focus on the things I should be focusing on, because now I see that the team at Restylers’ Choice can run on a daily basis without my constant guidance.

The point is that as small business owners sometimes you have to step back and trust and appreciate the people who work for you. Unfortunately for most of us this realization happens out of necessity and not desire. Take a step back look at your operation and realize this now, not because you have too, but because you want to.

Thanks to everyone at Restylers’ Choice for the wonderful job that was done in my absence, but don’t get to used to it, because I am back, and don’t plan on going anywhere too soon.
 
Doug Jacobs

Lately, we have had a few issues with customers who seemed to dislike our return/reshipment policies. Our policy is based upon the many experiences we have had in this industry, and when you step back and look at the situations with an agnostic eye, you will see how much sense it really makes.

First, let's explain a situation and how our policy would apply. Let's say you ordered a spoiler for a 1996 Toyota Camry. This happens to be a red spoiler, and we paint it the correct color for the car as per the code. However, since the car is 13 years old, the paint has faded and you are not happy with the color match. You call us up and ask that we reshoot a new spoiler and ship it to you in hopes that this second spoiler is a better match.

Our policy dictates that we will do exactly as you have asked, paint a second spoiler and ship it to you so that you can take care of the customer. However, we are going to bill you for this replacement product. It makes no difference to us whether you made the mistake or we made the mistake, we will bill you for the replacement product. When we receive the incorrect product back from you we will refund your money for the returned product.

This is where we always seem to run into trouble. Customers will invariably get mad at us for charging them for the replacement. “It was your mistake” or “Why should I have to pay twice?” We hear it all the time.

The reason is very simple. If you have no investment in the product you have no incentive to return the defective/incorrect product to us. So in the long run we get stuck giving away free product and have no way to get the other product back from you. Now, however, if we tie up your cash in the product, you will make darn sure that we get it back. You will also call us on multiple occasions to make sure we got it, and that you will be getting your refund/credit. Funny how human nature is.

Now lets examine the “why.” This is pretty simple to explain as well: we have been burnt HUNDREDS of times in these situations. We call and call and call checking on the return and we get the typical answers: “I sent that back,” “I will do it right now,” “As soon as I am back in the shop I will do it.” Just this week I got into an email exchange with a customer who we “bent the rules for” and shipped out a replacement spoiler for no charge in SEPTEMBER. Guess what–still no spoiler. And when I asked for my spoiler or for a payment for the second spoiler, suddenly I became the jerk. Funny how that works, we did a favor and now we are the jerks.

Logically speaking, could you ever imagine going into your local Wal-Mart, proceeding to the customer service desk and having this exchange: “I bought a shirt here last week and when I got home I found a tear under the sleeve. Can I get a new one today for free and return the bad one a week from now, or when I find it convenient?” They would laugh you out of the store, just as they should. And the funny part is that you would never even try that because you know how absurd it is.

Obviously, this topic came up because the situation that arose this week. I have known a lot of you guys for years, and I value every bit of business you bring to us. These policies are not put in place to punish you or to reflect on how we view you or your business. If we all live by the policy then no one has a reason to get mad. It keeps us all on a level playing ground and from that vantage point our relationships can continue to grow and flourish.

Lets all hope the business climate heats up as the weather begins to break!
 
Doug Jacobs

They say that crap rolls down hill, and as a warehouse distributor, we live in the valley between two mountains: customers on one side, vendors on the other. I guess you have to be a WD to see how poetic those two statements really are.

I am not complaining, I really enjoy the role we serve in the industry, and I wouldn’t want to have to do your job. You too have demanding customers and issues with suppliers. The reality is that in trying economic times, we all need to adjust our expectations and learn to deal with those things that don’t go quite our way.

In order to survive in these tough times, many companies have had to adjust the way they run their businesses. Cutting back on staff, reducing inventory, and changing policies are all the prudent things you or your suppliers should be doing. Each of the decisions has both its plusses and its minuses and when these decisions are made they will affect you and your ability to do business. If you have reduced inventory you rely more on your suppliers to get you product. If they have reduced inventory then it takes them longer at times to fill your order. Once again the “rolls down hill” axiom proves it self true.

The issue really can get ugly when vendor lead times are excessively long, mainly due to sourcing things from overseas. We are seeing this now as we are waiting four to six weeks for products that we used to get in days.

As the winter thaws, and we are just now seeing some signs of business returning to more normal levels, we are seeing more and more issues like these. Businesses who were running with reduced inventories are now being caught with their proverbial “pants down.” It affects us and in turn it will affect you. It is not that we are not trying to get product here for you, But more that there is less product available in the pipeline for us to get.

There is nothing more frustrating then having to work harder than normal to find a little work to do and then have to put off that job because parts are hard to find. The economy made us all pull back, it is going to take a little time for all us to ease back on the gas.

The bottom line to all of this is pretty straight forward–we all need to adjust our expectations. Not that we should expect less service, or expect to be disappointed, but instead to expect things to be a little harder than normal. The economy has affected us all in the pocket book and we shouldn’t be surprised for it to go after our expectations too.
 
Doug Jacobs

It is a simple, three syllable word that has very powerful connotations. What I find most interesting about the word is that it can mean very different things to the same person depending on which side of a relationship they are on.

I have always considered myself a very loyal person, many times to my own fault. Growing up I was “loyal” to my 10 favorite bands. My first car was a Ford Mustang, and I have been a loyal Ford buyer ever since. My first computer was an Apple, and to this day my business runs on Apple computers, and my cell phone is an iPhone. My wife and I are both graduates of the University of Cincinnati and are loyal fans and supporters of their athletics programs.

When it comes to business, I feel I have always been the same way. I have been extremely loyal to our vendors, companies like Universal Products or Trim-Gard. We have been offered many times to change lines to ones that maybe offered better pricing or different offerings. The reality is we have worked with these vendors to improve their products and in-turn they have worked with us to improve our service. This is loyalty to me.

On the other hand, I have always strived to work with, protect, and help grow the businesses of my customers. The thought has always been that if it’s good for our customers then, in the long run, it will also be good for us. Over the past month, I have been involved in several separate conversations that have made me begin to realize that maybe my loyalty has been one-sided.

I had one customer who owed RC over $3000 for the better part of a year. We worked with them and agreed to take our payment a little at a time, and now he is close to being “caught up.” The other day when he asked us to do something that we could not do under the current state of his account we were told...”that is fine, I will take my business to someone who wants it.” Is THAT loyalty? Is that what we deserve when we have worked hard to help a guy out of a jam?

Another situation that came up involved a customer who was buying most of his products from a competitor. The reason? Well when I asked I was told “it’s complicated”. Complicated? More complicated than the fact that he stuck the previous owner of Auto Accessories Warehouse for a TON of money, and I allowed him to set up an account and get back into business? More complicated than the $2500 his brother stuck me with when he went into business for himself and promptly disappeared? Complicated??? Oh yes, loyalty can be complicated - especially when you are on the giving end.

Finally, we had a good walk-in customer in our Dallas warehouse come in to complain that we were selling to one of his customers. He asked us to stop. We then asked him a couple of questions like: Why are you buying products from one of our former employees when you could get it from RC and why are you buying clear bras from our competitor when you could buy it from RC. He stood there and looked like a deer blinded in the headlights. How dare we ask these questions. Once again loyalty cuts both ways.

The reality is that today business is hard to come by for everyone. Many times it may seem like the best answer for your business is to do whatever it takes to save a dime here or a dollar there, never looking at the real impact to your bottomline. You want your suppliers to protect you and be loyal. You want them to be there for you when you need a bailout or some extra time to pay. You expect them to help you out when a job has put you in a pinch. To be honest, Restylers’ Choice loves to be there for you, we love to be in a position to help you out, anyone who knows me and my involvement in the industry, knows this is true.

Just don’t be in shock when someone expects the same thing of you.

Doug Jacobs

Put your hands up, and prepare to scream your guts out. We are on one hell of a roller coaster ride right now, and it isn’t gonna end anytime soon. Obviously, I am talking about the current state of our economy and more precisely the automotive market.

We hear all of the doom and the gloom all over our TVs, day in and day out. It gets old and discouraging, but we can’t afford to fall prey to the talking heads. As small business owners, we need to be the driving force behind this economy. We need to find new ways to innovate and to make money when everything we know has been turned on its ear.

Just a few short years ago, our industry was selling 16 million cars a year, setting record sales year after year. Consequently, the market for accessories and restyling products for both new and used cars flourished. During this time it was easy to find work and even easier to get paid to do that work. However, over a very short period of time, gas prices spiked, credit crunches crunched, and car sales fell to levels we haven’t seen in 20 years.

Predictions are calling for over a 40% drop in car sales, to below 10 million units. Now the news talks about auto industry bailouts and financial rescue packages. The reality is that this is the new reality. We have to accept and keep plugging. I have heard many customers tell me: “things are so slow that I am just gonna pack it in, and find something else to do”, or even worse: “my dealers aren’t doing anything so I am not calling on them.” Neither of these will do our industry any good, but the latter is like throwing in the towel for a slow and painful death.

We need to find ways to make money, find those new opportunities in your area. Keep making those calls on your dealers. If you are the only one doing it you will be the beneficiary when things start to turn around. And they will!

And when they do things will look different: the number of car dealers will be drastically reduced, the number of brands maybe less, and most definitely; the amount of your competition that survives will also be less.

You really need to look at this economy as an opportunity.

Opportunity to catch your breath and evaluate your current position.

Opportunity to focus your business, and make what you do as profitable as possible.

Opportunity to increase your level of service to your customer base.

Opportunity to push yourself to learn new skills and products.

At the SEMA show last month we saw a lot of these opportunities. And they came from guys just like you. We honestly expected the show to be a dismal failure; with all of the gloom and doom, we knew there would be less exhibitors and less attendees. But what we found was this was true, but those that were there, were there because they care about surviving this market. They wanted to learn and grow and make their own opportunities. Just as we all need to do.

Since we can’t control this roller coaster we might as well just enjoy this ride, and make the most out of it.

Doug Jacobs