Auto Recycler’s T0olbox magazine
“Auto Recycler Trade Show in Print®”
Auto Recycler’s ToolBox Magazine® is now part of the Automotive Recyclers Association (ARA) Publishing Program
Contact Caryn Smith at toolbox@a-r-a.org with inquiries
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Caryn Smith: toolbox@a-r-a.org
239-225-6137
Articles in the Current Edition
Just this week the local police were here asking us to be on the look out for converters cut off cars overnight from a BMW repair facility two blocks away. Last week, police called with a similar request stating thirteen brand new cars had their converters cut off from a new car dealer. Naturally, we do all we can to catch the thieves. Brand new converters are obvious and easily noticed, however; the used ones, if not marked, are pretty tough to ID. In one recent instance, the police asked us to be on the look out for some Ford truck cats that had been stolen from a local dealer.
This year is one of the longest years I can remember. And it's not over yet! Things started out pretty normal, but when Covid-19 hit in March, it really changed the pace. First, things were frantic – we were all trying to figure out what would happen, what we should do and how we would protect our businesses and families. But now it seems like time has slowed to a crawl. I’m writing this at the end of August, which is the end of the longest summer I can remember since I was a kid.
This is now September, and we are nine months into 2020 and COVID-19. Let’s look at 2020, and what does the rest of the year hold in store for us? What have we done, and what will we do?
We are looking for some ideas to improve the attitude of our staff. It seems like they doubt the value of what we sell. I hear employees refer to parts as if they had already failed. I actually heard a salesperson say he would sell a part at a very low price because it was the only one we have in stock. When I asked why, his response was that if it failed, we couldn’t replace it and that would reduce the amount of refund we would have to write. Obviously, we had a discussion about that thinking. But as I thought about it, I have noticed other occurrences where the drivers had made negative comments about our parts. So, please give me some ideas.
You simply must spend more time understanding inventory turns and cost of goods. (I don’t mean cost of cars.) One of my good friends, Gary McKinney, a new car dealer, taught me to focus on turns first, margins last. If you are analyzing a return on something over a yearly basis and you put money into materials that return a 50% margin over the year and you compare that to inventory that turns over quickly at 20%, consider how much more you would make if you turned the smaller margin over six times a year, as opposed to the larger margin, only once a year
Businesses in today's economy must be quick to adapt to remain successful. As recent events have shown, change can happen in an instant. The way consumers interact, shop, and buy has completely changed. Staying up to date with current business practices, utilizing the correct tools, and knowledge of new technology is crucial. Technology will keep advancing, making this industry more competitive. Staying connected to a community of like-minded successful business owners can help give your business that competitive advantage. There are a lot of ways the Automotive Recycling industry has changed, and will continue to change, as technology advances. Ask yourself the following questions: