Just Sayin’ Blog – Memorial Day – A Debt of Gratitude

Interment of Major General Jesse M. Allen

Memorial Day celebrates the men and women who gave their lives in service to the Armed Forces of the United States of America. The debt of gratitude that we owe each of those who have fallen and who have given the ultimate sacrifice is a debt that cannot be repaid. Since the start of the Revolutionary War in 1775 there have been over 1,343,812 Americans who have died in service to our country. Memorial Day gives us all the opportunity to honor those who have died while serving the country by remembrances.

Recently my uncle, Retired Air Force Major General Jesse M. Allen, died. He served in both the Army and Air Force. His military service began in 1942 when he enlisted after high school and was sent to Europe during World War II. He was buried at Arlington National Cemetery earlier this month and he had a rather storied combat career serving in World War II, the Korean War and in the Viet Nam War. During the Korean and Viet Nam Wars he flew over 237 combat missions. My uncle was known to say that “If you can dream it you can become it” as he entered the service as a private and rose to the rank of major general when he retired after 30 years of service.

This day of remembrance also gives us an opportunity to recognize and honor all who serve and have served the Armed Forces of the United States. We certainly owe a debt of gratitude to every American who chose to serve and Memorial Day is an appropriate time to do so. Although I did not serve, there have been a number of my family members who have honorably served over the years starting with Ethan Allen, the leader of the Green Mountain Boys in Vermont during the Revolutionary War. Both my father and brother served as combat pilots. I am very proud of their service.

If you have served in the Armed Forces or have family or friends who have served, I’m sure that you are proud of your own service or the service that others have given to our country. Today is a great day to remember and give thanks for that service.

I have had the great honor to have worked with many people in my career who honorably served their country and I would like to thank them again for their service. The lessons that those who serve learn about loyalty, leadership, honor, integrity, and personal ethics and these are assets that they are able to build upon and utilize throughout their lives. One does not have to serve in the Armed Forces to have learned these important attributes, but those who have served have a great sense of what these values mean both on a personal and professional level.

We should all be thankful on Memorial Day for individuals who choose to serve their country by joining the military to help protect us so that we can live in a safe and secure country. I know that on this day I am very proud of my family members who have served and those that serve today. I want to thank them for their sacrifices in service to our great nation.

I hope that you take the time to give thanks for their service and sacrifice as well.

Just Sayin’…..    

Just Sayin’ Blog – It’s all a matter of perspective isn’t it?

Television station WAVE Channel 3 in Louisville, Kentucky, aired an investigative “Troubleshooter” news segment titled “Windshield fraud growing, costing drivers money” two weeks ago. The station reported on the sales tactics one company uses in the Louisville market (and other markets in the United States) to find customers who may be in need of auto glass replacements.

 In the segment, WAVE “troubleshooter” reporter Eric Flack spoke with a former auto glass technician from the company. The auto glass technician evidently had contacted the station with a number of accusations relating to his former employer. The story included interviews with a fraud investigator from Arizona, the director of the Kentucky Insurance Fraud Investigation Division and a gentleman that WAVE reported was a sales representative for the company that was the focus of the investigative report.

As someone who has spent the majority of my life in the auto glass repair and replacement (AGRR) industry, the investigative report WAVE Channel 13 news aired made me feel a bit uncomfortable. Perhaps it did for you as well.

There are countless sales and marketing tactics that companies, large or small, use to market AGRR services to influence the decision maker(s) for the key customer groups – whether they are insurance, commercial or cash customers. The barriers that exist today for a small company attempting to access customers have never been higher. Many small companies find themselves in a position where it is very difficult, if not impossible, for them to compete for one or more of the key customer groups due to the changes that have taken place in how customers seek replacements or how insurance company glass losses are managed. Many companies are using more aggressive tactics to attract customers so that they can survive in the marketplace. I’m not suggesting that all of these various tactics are either right or wrong. You may hear the term “windshield bully’s” used to describe some of these tactics.

It shouldn’t come as a surprise that an AGRR company would attempt any number of tactics to attract customers, especially when facing possible extinction. The weather, the economy and miles driven have been negatively influencing the market over the past several years. Everyone competing in the AGRR industry is scrambling to find the right recipe for survival in their market(s). I think that a fourth key market driver could be added into the equation and that additional driver is the dominant AGRR retailer, who also happens to be a leading insurance claims administrator, wholesaler and distributor as well.

The dominant retailer uses a number of its own sales and marketing tactics to ensure its position in the marketplace. Perhaps the key tactic is the ability for it to spend millions and millions of dollars on national television and radio advertising to attract current customers to its platform. This tactic also provides the opportunity for the dominant retailer to influence long-term customer choice as well. The attempt to influence customer choice long-term is very costly and not easy to achieve in the large diverse United States market, but it is a tactic that the retailer’s owner has used with great success across the globe.

Many in the industry view other tactics the largest retailer uses as being aggressive. One tactic competitors complain about is the attempt to steer an insurance customer that must file an auto glass loss claim through the retailers claims administration business to its own retail division; even though the customer has requested that another retailer do the work for them. How many of you have experienced that tactic when you are required to call the largest retailer’s claim administration division to file a claim with your customer on the line? I have heard many a customer service representative say to the retailer claims administrator while on a 3-way conference call with their customer on the line:

“You do know that I’m still on the line right?”

or

“I’m still on the call and you’re talking to my customer trying to take the job away.”

Has that happened to you and/or to your customers when they want to use your service for their glass needs? Is it possible that the largest retailer is the true “windshield bully”?

 

Whether you’re with the company that was highlighted by WAVE Channel 3 in Louisville or you’re the dominant retailer in the United States; many in the AGRR industry find some tactics cross the line of reasonableness, may go against the rules insurers have set for doing work for their insured’s or in some cases tactics may be against the law, but in the current environment companies may try things that they would have never have considered just a few years ago in order to survive.

It’s all a matter of perspective isn’t it? When looking through the eyes of two different competitors, one company sees the other company as being too aggressive or maybe a “windshield bully”, while the other is just doing what they believe they need to do just to survive when faced with the tactics used by others in the marketplace.

Just sayin’……..

Interview with Eric Asbery, President/CEO www.Equalizer.com

Today I’m talking with Eric Asbery, President of   Equalizer Industries, Inc., an undisputed premier provider of innovative tools and products for the auto glass repair and replacement (AGRR) industry in the world. The company was founded by Eric’s father Ray Asbery in 1987. Ray unexpectedly passed away last September 27th at the age of 67.

Over the years Equalizer has received many awards, including several “Best of Show” awards. Company executives have also received a variety of industry awards including Eric’s being recognized in 2007 by the National Glass Association (NGA) with its prestigious NGA “10 Under 40” award; in 2005, Equalizer Vice President of Sales, Gilbert Gutierrez was awarded the prestigious Len Stolk Award” and Ray was honored by being awarded in 2004 the “Carl Joliff Award” by the Independent Glass Organization, in 1994 the NGA’s “Professional of the Year” and in 1992 Inc. Magazine’s “Entrepreneur of the Year” award. In fact, Auto Glass Week 2012 will be dedicated to Ray’s legacy.

Equalizer is headquartered in Round Rock, Texas which is about 15 miles north of the Texas state capitol of Austin.

 

DR:  Thank you very much for taking the time to answer some questions Eric. I’m a big fan of Equalizer and I only wished that the tools that your company has developed and brought to the market over the past 25 years would have been available when I first started as an auto glass installer 40 years ago.

Eric Asbery:  I hear that very often. As I was growing up, my Dad was transitioning from being an auto glass technician to a manager over several locations. I can remember him always talking about how there were no specific tools that technicians could use and that the taking glass out of automobiles was getting harder.

 

DR:  I know that your father got his start in the AGRR industry with U.S. Auto Glass. How did long did he work for Joe Kellman and what were his responsibilities while at U.S. Auto Glass?

Eric Asbery:  Actually, Dad got his start in AGRR as an installer in Louisville, Kentucky in the early 1960’s. He was hired in 1985 by Joe Kellman to manage the Austin, Texas market for U.S. Auto Glass. He worked there until late 1987.

 

DR:  What was the impetus for Ray to start the company and how was he able to envision the tools he developed over the years?

Eric Asbery:  Early in 1987, Dad and his technicians encountered the problematic 1986 Ford Taurus. It was a radical new design and the lower part of the windshield was attached by a thick, heavy bead of urethane that was nearly impossible to use conventional tools to remove it without breaking the windshield further. Many technicians were so frustrated by it that they resorted to just breaking it out with a hammer. One Saturday morning, after several of these tough jobs had come through his shop, Dad woke up with the design for the original Equalizer tool in his head. He went to work that Monday with the first Equalizer after building it over the weekend in our garage.

Dad was always inventing. He was a working man that really enjoyed working with his hands. He was always trying to improve upon any working situation he encountered. He listened to those around him, when they encountered a problem with their daily work; he always tried to make their job easier. Whether it was a tool or technique, it was very enjoyable for him to make work more productive for everyone.

 

DR:  Equalizer is known for its products all over the world. How did that happen and what are you planning to maintain and grow that presence, especially beyond North America?

Eric Asbery:  In the early days of Equalizer, we received a lot of attention on a worldwide scale. Every trade show we exhibited at or magazine we advertised in, people who did auto glass anywhere in the world were drawn to us because we were producing tools that hadn’t existed before. The timing was right and we knew it. We were fulfilling a need, right when it was needed the most. We simply focused on providing great customer service and the world came to us.

We now have over 100 different distributors worldwide; we are constantly traveling, researching current automotive glass installation trends and training the appropriate people necessary to satisfy the needs of technicians everywhere. As the global economy allows, we are always in search of new areas to market and support our products.

 

DR:  Equalizer has always been known as the dominant company for auto glass replacement tools. Do you plan to do the same for repair?

Eric Asbery:  The auto glass repair market is something we have always invested in. There are several great repair systems out there and we have carried several of them over the past several years. If our coverage of this market is consistent, then there is a chance we can become the dominant supplier. However, our primary goal is to ensure that any product we offer gives the auto glass technician the best opportunity to do their job effectively and easily.

 

DR:  Many people are always looking forward to the new Equalizer catalog. In the last several years, you also established a great presence on the internet. Do your customers still like to look through a paper catalog or is there a shift to see the products through electronic media?

Eric Asbery:  We have found that even though there is an ever-growing part of the industry that is becoming electronically inclined, most people still like to “flip through pages” of our catalog and that will be the direction we will continue to go until we sense that a major shift to electronic media is on the horizon. We think our catalog will continue to stay in printed form for quite some time but we always alternately develop and make available electronic versions of our promotional or marketing materials.

DR:  When did you join Equalizer and what areas of the company were you responsible? How did your responsibilities grow over the years?

Eric Asbery:  I have been at Equalizer since day one. My role at Equalizer, until 2005, had been directly related to developing Equalizer’s brand, image and marketing presence. In 2005, Dad (then 61) and I began work on my transitioning to the daily management of Equalizer. We both considered that transition complete in late 2010. Although Dad had never had any definitive plans for retirement, we all figured he’d work at Equalizer into his 80‘s. In retrospect, I am very relieved we had this foresight.

 

DR:  I know that many of the tools that Equalizer has developed over the years have unquestionably helped reduce countless injuries of auto glass technicians. The number of cuts, lacerations, back and neck strains requiring visits to hospital emergency rooms has had to have gone down by those using your tools and products. I know many companies supply auto glass technicians with Equalizer tools just for that reason. Hopefully this question doesn’t make you feel uncomfortable, but do you hear from those who buy and use your tool thanking you for how Equalizer tools make it easier for them to do their jobs?  

Eric Asbery:  It is a very humbling experience to hear from someone who has benefited greatly from something you created for them. We receive feedback from hundreds of technicians each year thanking us for offering these products to them. My favorite memories from over the years have been when a technician has walked up to my Dad or any of us working at a trade show or open house and proceeded to tell a “before and after” story about our one of our tools and how it has greatly impacted their life in a positive way. It is truly the best part of my job.

 

DR:  When new car models come out each year they often have auto glass parts factory-installed in ways that many responsible for replacing those parts feel were designed by diabolical design engineers who seem to try to cause problems. How quickly do you start looking for replacement solutions for those parts that could cause difficulties?

Eric Asbery:  We have a network of “Equalizer Inventors” who are mostly auto glass technicians who have worked with us to design or create products over the years that we sell and/or produce for them. These technicians will encounter new design problems during their job on a daily basis and within a very short time they inform us of it. In many cases, they will offer a potential solution based on their experience and that’s what gets the ball rolling to create a product that will simplify the experience.

 

DR:  With the sudden great loss of your company’s leader, mentor, friend and your father, what plans do you have in the future to continue to grow the business and provide the AGRR industry with leading edge and innovative products in your leadership role?

Eric Asbery:  Since the beginning of our company, our focus has been to serve the needs of auto glass technicians everywhere. We developed relationships and processes to ensure we have been on the leading edge of technology for this industry. Nothing has changed or will change in this area. This is why Dad founded this company, this is our purpose.

We are always on the lookout for the next big thing, the next viable trend. Be it a tool, a process or just an idea or concept. We will travel, learn, adapt and teach. We will continue to gain from the experience of technicians in the smallest auto glass shop to the biggest national chain. We will always listen, respond and provide the best products available. This is what we do.

Thank you very much for spending the time to answer my questions Eric. You have a great company and I wish you continued great success.  You and your team have provided the AGRR industry with amazing products. I know that many join me in anticipation of the next great product that you develop to further improve the installation process as well as the safety of technicians around the world. Thank you for all you and your company do.

Just Sayin’

Equalizer Industries, Inc.

Meaningful Quotes – Harbaugh, Hogan and Einstein

“Attack this day with an enthusiasm unknown to mankind.” – Jack Harbaugh

“Attack this day with an enthusiasm unknown to mankind”, is what the father of two current National Football League (NFL) head coaches said to them when he dropped them off for school each morning as they were growing up. That father is Jack Harbaugh and he is the proud father of Jim Harbaugh – head coach of the San Francisco 49ers and John Harbaugh – head coach of the Baltimore Ravens. Based on the careers of both Jim and John it is apparent that their father’s entreat to them each school day provided them with the drive to be successful.

In these difficult times that many in business face, Jack Harbaugh’s advice to his sons should resonate with everyone. Enthusiasm (or passion) for what it is you’ve chosen to do in life is critical, especially if you want to be successful. It may be difficult to maintain your enthusiasm when you look around at the competitive landscape; and if you’re going to survive and grow your company not only do you have to be enthusiastic, but everyone in your company needs to exhibit the same trait. Every organization, regardless of the size, needs a leader or leaders that can help guide it through the ups and downs that surely will take place over the life of a business and help instill the enthusiasm that Jack Harbaugh instilled in his sons. Without enthusiasm, you’re doomed.

 

“There are three ways to beat somebody. Out work ‘em. Out think ‘em. Then you intimidate them. Its part of the game.” Ben Hogan, professional golfer

In his era Ben Hogan was one of the great golfers and as a child and as an adult suffered adversity which he was able to overcome. At an early age he suffered the loss of his father due to suicide and to help his family earn money he took a job as a caddie. His golf career was put on hold for three years while he served during World War II and a few years after he returned to professional golf; he and his wife were involved in a near-fatal car accident in 1949 where he sustained multiple fractures to his pelvis, collar bone, ribs and an ankle. His doctors told him that he may never walk again and that his professional golfing career was over. Not only did he walk again, but he went on to win on the professional tour and win big. Ben won 63 professional golf tournaments during his career. I think he mastered the three ways to win.

At any level in team sports coaches try to put together a group of individuals that can work together cohesively toward the ultimate goal of winning. In business, leaders and managers work toward the same goal. In business putting together a diverse group of individuals who can accomplish the various goals that the company sets is what drives success. As Ben Hogan said, to be successful at what you do you need to work hard and come up with strategies that will enable you (and your team) to win. The third way Ben used to win was to intimidate his opponents through pressure. Pressure is a factor that exists in all sports.

What I like about Ben Hogan’s quote is that you can relate it to the business world. To me it embodies the idea that even if you’re business is smaller than those with whom you compete; you can still be successful by being good at your work and by “Being Smart”. Success can be seen by fellow competitors in the marketplace as a form of intimidation or more importantly respect. Regardless of the size of your business, most often when you “out work ‘em and out think ‘em” you’ll find success. Use all three ways to your advantage as Ben Hogan said, “Its part of the game.”

 

 

“Insanity: doing the same thing over and over again and expecting different results.” Albert Einstein

 

This quote, attributed to Albert Einstein, often is used to describe a business practice/strategy or two that a company never seems to change even though the business environment that the company operates is constantly changing or evolving. Over the years I’ve used the quote a number of times while trying to make a point in a business discussion with a supplier, T.P.A., employee and others. I’ve also used it while talking to one or more of my family members or friends. Perhaps you have too.

 

Often, when you’re just too close to something that you just can’t see the problem, you need someone close to you that you can trust who can tell you what they see that you’re doing in your business that’s not working. Something you’ve been doing “over and over again” while getting the same result? I’m going to guess that there are many. We tend to take a “if it ain’t broke don’t fix it” approach to things we’ve done over the years that have historically worked. Einstein’s quote is very simple and straightforward. Are there things in your business that you could perhaps take another look and do a little differently to improve the performance of your business? If you make a change you may get the same result, but if you’re not willing to try; how will you ever know?

 

Just Sayin’.

Interview with David Carnahan from Mainstreet Computers

Today I’m talking with David Carnahan, the owner of Mainstreet Computers, Inc. Mainstreet opened for business in May 1982.  Mainstreet is a leading provider of software solutions to the automotive glass repair and replacement (AGRR) industry. I’ve been fortunate to have utilized David’s software products to help manage AGRR businesses in the United States, as well as Canada. Over the years, I’ve found David as a businessman who has the highest of values, principles and ethics in operating Mainstreet. This April Mainstreet celebrates its 30th year in business.

DR:   Congratulations David! That is quite an accomplishment in the longevity of any business and one you and your employees should be most proud. How did you find yourself providing software solutions to the AGRR industry?

David Carnahan:  In those early days we sold to virtually any industry, but we concentrated on smaller businesses.  This was before the days of “off the shelf software”.  We wrote or modified our programs to suit each company we sold.  After selling to several glass shops we became more familiar with their needs and saw an opportunity to become a complete solution to glass shops across the country.  So beginning in the mid 1980’s we began focusing on glass and Glas-Avenue born.

 

DR:  What do you feel are the keys to your success in being able to build, sustain and grow Mainstreet Computers over the past 30 years?

David Carnahan:  Though there are many “keys to success”, I’d like to mention two …

1.     A mentor to Steve Jobs (the founder of Apple Computer) is quoted as saying that a company that lasts must be willing and able to reinvent itself.  I believe that is true and particularly true in the technology field.  When we started serving the glass industry back in the 1980’s we concentrated as much on selling hardware as we did on selling software but by the early 1990’s customers were better served buying hardware locally, so we changed our whole model and focused strictly on software and software solutions.  Then about seven years ago we extended that service into designing and developing websites which has proven to be a great “re-invention” as we have helped scores of glass (and other service industry) shops “re-invent” themselves and move from dying to thriving.

2.    A lasting company must have a long term mentality.  We have always hired people with the idea they would work here until they retire.  The cost in time and customer frustration of hiring and training new people is much greater that most people realize.  Most of our people have well in excess of 15 years with us.  When your people don’t expect to be around in a few years it affects every facet of the company from new product development to customer support.  It’s also makes the work environment more rewarding.

 

David Carnahan (left) with Programmer Dave Daniels (right)  who recently celebrated his 25^th year with Mainstreet.

DR:  How would you describe your management style and who has been a great help to you in building your business?

David Carnahan:  I am a Christian and my faith impacts the way I lead the company.  I view Mainstreet as God’s company not my own, so I’m responsible to be a good steward of His company.  My philosophy is to find good people, treat them right and provide an environment where they can shine and excel in their strength areas.  I have a speech that I give prospective employees.  I tell them that I don’t believe in micromanaging, so … “if you’re the type of employee that only performs well with someone constantly looking over your shoulder to make sure you do your job, you won’t fit in here.”  Our people know their jobs and the mission of our company and they “just do it”.   I believe the longevity of our staff speaks for itself.

 

DR:  What lessons have you learned in growing your business that you think could be helpful to others seeking similar success?

David Carnahan:  Don’t give up.  Success is not an event, it’s a process.  I believe slow steady growth is much more stable than explosive growth. Never stop trying to improve and never take anything for granted – customers, sales or employees. 

 

DR:  What are the services that Mainstreet Computers provides to its customers and how have those changed over the past 30 years?

David Carnahan: We provide fully integrated Point Of Sale and accounting software to retail glass businesses – from small “mom and pop” shops to large multi-store chains.  We also offer website design and web hosting geared toward helping the glass shop market themselves and increase sales through the internet.  The biggest change in our strategy came 25 years ago when we began focusing primarily on the glass industry.  This strategic decision of ‘narrowing the focus to broaden the impact’ has enabled us to really gain an understanding of the needs of the glass industry.

 

DR:  How do those differ from your competitors? 

David Carnahan: Mainstreet is the first and only glass software provider to offer a fully integrated accounting system.  We wrote it ourselves and it’s specifically designed to work with our Point Of Sale program. Since we wrote it we fully support every part of it, so we’re the only contact a glass shop has to make for help with their software.  We are also the only glass software provider designing websites for the industry.

Beyond basic products, the other characteristic that sets Mainstreet apart is our level of support.  We have more people with more years of experience supporting our products than any other company.  We are relentless in our commitment to provide support that is unparalleled in the industry.

 

DR:  You’re an innovator in the industry. What were the main reasons you felt that strategy would work as successfully as it has?

David Carnahan:  The reason for our success is simple.  Mainstreet’s software and services meet a real need by enabling glass shop owners to benefit from technology without being or becoming technology experts.  We provide the technological expertise while they concentrate on running their glass business.

 

DR:  I very much appreciate your taking the time to talk with me today. In closing, is there anything further you’d like to share with the readers of this blog?

David Carnahan:  Thank you David for all you do for the glass industry.  You have a depth of knowledge and experience in this industry that is very rare.  I hope you continue to advocate for the independent glass shop owners.

Thank you David and thanks again for taking the time to talk. I know that you, your employees and company will continue to have great success in the years to come.

Just sayin’.

March Madness – Final Four Update

Sadly there isn’t a Cinderella Story this year and no real underdog since there is 1 – 1 seed, 2 – 2 seeds and 1 – 4 seed in the Final Four.

My picks today are:

Louisville vs. Kentucky – I think Kentucky will win.

Kansas vs. Ohio State – I think Ohio State will win.

Championship Game – Ohio State vs. Kentucky – I think Kentucky will win.

What do you think?

 

Just Sayin’ Blog – Hopes for the New Year (Spring Update)

On January 10, 2012 I wrote a blog titled ‘Hopes for the New Year’. In the blog I laid out my hopes that 2012:

“turns out to be a great year for those in the automotive glass repair and replacement (AGRR) industry (or if great is too high a bar to set at the very least better than 2011)”. 

Since we’re nearing the end of the first quarter of 2012 I thought that I’d take a quick look at the first hope I listed for this year. My first hope was regarding the 3 key business drivers for the AGRR industry – weather, the economy and miles drive.

Weather – I had asked for ‘good’ weather for the year. ‘Good’ meaning bad of course. That means snow, hail, and especially ice if you happen to be in the AGRR industry.

As I’m writing this blog watching March Madness the temperatures in Illinois are in the mid 70’s and the sun is shining. Farmers in the Midwest have already been in the fields doing prep work getting ready to plant crops in the near future if the temperatures stay this warm. The lack of a winter in 2011-2012 is discussed in an article titled ‘For much of the USA, winter never got off the ground’ . In the article is a graph that details the year-on-year drop-off in snowfall in major cities across the Northern states. the lack of snowfall is blamed on the location of the jet stream this year to last. For those in the AGRR industry, hopefully it will get back to where it belongs in the 2012-2013 winter season. On a personal level I’ve enjoyed the lack of snow this winter, but from the Upper Midwest to New England the mild winter has forced countless companies to take a hard look at costs they can take out of their businesses. Costs equate to people.

There has been welcomed hail this year in a number of states. This obviously brings glass breakage, but sadly much of that hail came with tornado’s that caused death and destruction as well.

I haven’t talked to anyone in the U.S. who is happy with how this year has started or how they’re doing year-on-year. Regardless of whether they’re a retailer or a supplier it appears that everyone is hunkering down in 2012. The only ones who might have a slight smile are insurers.

It’s not only here in the United States, even the venerable Belron keystone subsidiary in the United Kingdom Autoglass® has had to “slash jobs at its head office and axe 16 out of its 101 branches resulting in a large number of redundancies (lay-offs)“ as reported on February 29, 2012 by the Insurance Times – UK.

The Economy – Indications are that the economic environment is moving in the right direction with the February 2012 unemployed rate down to 8.3% from a high of 9.1% in August 2011 as reported by the U.S. Bureau of Labor Statistics. The Wall Street Journal – MarketWatch.com reports retail sales improving in the first two months of 2012 and home prices and sales are beginning to rise seemingly pointing to a turn-around for the housing market.

All of this is good news if you’re a retailer, but the signs of a recovery could be short lived as Bloomberg reported last Friday that the Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 74.3, the lowest this year, from 75.3 the prior month. That means consumers aren’t feeling too confident in the recovery quite yet.

What’s happening on the national economic level is important, but even more important is what’s happening in the local economy in which you operate. What’s the unemployment rate in your market, how are retail sales and are you seeing a recovery in the housing markets? How is your business performing so far in 2012? Feeling good or bad about your prospects?

Miles Driven – Miles driven has shown some minor improvements at the start of the year, but that might be short-lived. In early January Ed Morse, Head of Commodity Trading at Citibank was predicting $ 4 a gallon gasoline as a floor price by the end of May 2012.  As of today the average price in the United States for a gallon of gasoline is $ 3.84 as reported by the U.S. Energy Information Administration. A few blocks from where I live in Chicago a BP® gas station is selling regular unleaded gasoline for $ 4.459 a gallon and $ 4.709 for premium.

Recently ExxonMobil’s CEO Rex Tillerson spoke with the TODAY Show’s Matt Lauer and said “Despite rising crude oil prices and threats to stability in the Middle East, the price of gas is unlikely to reach a national average as high as $5 per gallon in the near term”. Well isn’t that comforting news.

Politico recently reported that President Obama’s Energy Secretary Steven Chu was “walking back” his comments in an interview he had with the Wall Street Journal in 2008 when he told the newspaper,

“Somehow we have to figure out how to boost the price of gasoline to the

   levels in Europe”.

Really? The prices per gallon in Europe in 2008 averaged over $ 8 per gallon as reported by CNNMoney.com and in 2008 the price for a barrel of oil reached a high of $ 147.27. Today oil is hovering around $ 108 per barrel and the average price per gallon of gasoline in the United Kingdom is over $ 8. Can you imagine what the price per gallon will be if (or when) oil goes higher?

The tensions that continue to build in the Middle East between Israel and Iran obviously add further concern to the price of oil and the gasoline our industry relies so heavily on.

Hopefully all of the key drivers that effect the AGRR industry will all trend positively in the coming months, but with the price of gasoline being such an overriding influencer of both miles driven and the economy even the prospect of future weather events won’t help. What the industry doesn’t need are consumers who become ‘do nothings’ by keeping their hands in their pockets holding onto their cash unsure of what’s coming later this year. If that happens, retailers and suppliers alike will continue to have to make those very hard decisions on what costs to cut next. The first and easiest cuts always involve people.

People are the ultimate key driver to any successful business. Companies that don’t recognize the incredible value that attracting and then keeping the most talented people undoubtedly will suffer when weather, the economy and miles driven have a negative impact on the business. Recognizing that employees are the key driver that helps every organization find ways to innovate, increase customer service levels and create value for all stakeholders will allow it to flourish and remain competitive in the marketplace.  

I wrote in a blog earlier this year about the need to ‘Be Smart in 2012′, quoting Coach Pete Carril who said, “The strong take from the weak, but the smart take from the strong”. I hope you’re being smart in 2012.

Just sayin’……….

Just Sayin’ Blog – March Madness (and the AGRR Industry)

It’s my favorite time of year for sports!!

March Madness!!!

The 2012 National Collegiate Athletic Association (NCAA) Men’s Basketball Tournament known as ‘The Big Dance’ offers 68 Division 1 basketball teams (27 teams are automatic qualifiers for the tournament by winning their individual conference tournaments and an additional 37 teams that are selected by getting the nod of the tournament ‘Selection Committee’ based on the teams “body of work” during the 2011 – 2012 basketball season), along with 4 additional teams that get a chance to play enduring an elimination round at the University of Dayton Arena the opportunity to lift the Championship Trophy and be crowned the NCAA Men’s Basketball National Champion. To become the Championship team, they will have to win all 6 games they play in the tournament. The teams that will be playing this year will be announced beginning at 6 p.m. Eastern on CBS television this Sunday, March 11, 2012.

March Madness takes us to and from various arenas around the country ending up in New Orleans from March 30th-April 1st for the Final Four. The teams are ‘seeded’ ranked from 1st to 68th in 4 regional brackets with 16 teams in each bracket (1 plays 16, 2 plays 15, 3 plays 14,…….8 plays 9, I think you get the idea), along with the 4 play-in teams.

 It’s a fairly complicated process that pits the best teams in Men’s NCAA Division 1 Basketball against each other in competition for the title of National Champion. If you’re not fully engrossed in March Madness you can follow this link to learn more (2012 NCAA Men’s Basketball Principles and Procedures).

‘The Big Dance’ is the culmination of an endurance test that starts in the fall of each year.  NCAA Division 1 Men’s Basketball is composed of 346 teams in 32 conferences plus 4 independent schools all starting the season working to get there’. The chances of reaching the tournament are 1 in 5. Those really don’t sound like bad odds. What makes March Madness a great sports event is the opportunity for an ‘underdog’ to reach the Sweet Sixteen, the Elite Eight, The Final Four or even make it to the Championship Game Final.

 It happens. In 1983 the North Carolina State (NC State) Wolfpack, coached by the legendary Jimmy Valvano (nicknamed Jimmy V), won what is considered to be one of the best Championship Final Games in the history of the sport on a last second tip-in by Lorenzo Charles after a miss by Derrick Whittenburg beating the favored University of Houston Cougars. NC State’s team was a ‘Cinderella Story’.

Last year the number 11 seed Virginia Commonwealth University (VCU) Rams made it into the Final Four by beating the number 1 seed Kansas in an Elite Eight game. The Butler University Bulldogs, a number 8 seed, made it into the Championship Game (two years in a row – in 2010 they were a number 5 seed) where the team played the number 3 seed University of Connecticut (UConn) Huskies. UConn was the highest seed making it to the Final Four. What happened to all the number 1 and 2 seeds? They were all obviously beaten by lower seeded teams. UConn ended up beating Butler in the Championship Game 53 – 41.

I think that there are similarities between the March Madness process and the auto glass repair and replacement (AGRR) industry. Perhaps a stretch to compare the two, but it’s my blog so here it goes…..

Imagine if the AGRR industry had a Division 1 Tournament (there are 3 NCAA men’s basketball divisions, but Division 1 is made up of the top colleges). Would the company that you work for be invited to the tournament based on how you rank in the market or markets you serve? If your answer to that question is yes, then what ‘seed’ do you think your company would receive giving you a chance to get to the Championship Game? Does the level of work and the service you provide match up to those you compete with in your markets? Yes? Great! You’re invited to ‘The Big Dance’!!

Another prerequisite for participating in the tournament is one that the NCAA tournament has too. You can only play one team from your company. If you happen to be one of those companies that operate under multiple company names in the same market you can’t expect to get them all into the AGRR tournament as that wouldn’t really be fair, so pick the one that you think can take you all the way to the end and quit trying to manipulate your odds.

Now that you’ve done all that work to make it into the big dance, is your company a highly seeded contender or are you a lowly seeded ‘underdog’? In ‘The Big Dance’ the underdog has a fighting chance. Not a great chance, but look at how the Butler Bulldogs and VCU Rams did in last year’s tournament. It happens.

Oh yeah….I forgot to also mention that the big difference with games played during March Madness versus the regular season is the tournament rule that there is never any home court advantage. Home teams often get more fouls called against the visiting teams by officials who have a tendency to do so to keep the hometown fans off their backs. All games are held on neutral courts so there is no home team advantage. Sadly that rule is suspended in the AGRR tournament to give one team an advantage. Safelite® Auto Glass gets to play all its games on a home court.

When you look at the 4 different brackets of my imaginary AGRR tournament who do you think will be the number 1 seeded company? How will it do versus the number 68 team do you think? Obviously the number 1 seed in the AGRR tourney is Safelite® Auto Glass. One of their star players is a gentleman named Ryan. You see him on television all the time (someone told me that they were going to cut those TV ads way back starting January 2nd…..guess not).

A potential problem for all of you who’ve made it into the AGRR tournament is that Safelite® Auto Glass decided to take the number 1 seed in all four brackets. Remember I mentioned earlier that no company could play under different names, but I didn’t say that there weren’t advantages to being the big guy and they have so many players that they get into all 4 brackets as the number 1 seed. And Safelite® owns most of the basketball courts (markets) and it has cornered the basketball market (insurers, fleets and cash customers, even suppliers) so they get to make most of the rules in the tournament. Now who do you think has better odds to win? The chances for a ‘Cinderella Team’ getting into the Final Four are tough as the odds are Safelite® is going to make it in with all 4 of its teams. You can imagine the odds for my hopeful Cinderella making it into the Championship Game. Sadly non-existent.

It seems to me that it’s a foregone conclusion that Safelite® has achieved the ‘dynasty’ status that the University of California, Los Angeles (UCLA) Bruins achieved from 1964-1975 (except for 1966 when the University of Texas, El Paso – UTEP Miners won and 1974 when the NC State Wolfpack won). The Bruins were coached by the legendary Coach John Wooden. But I’m still holding out hopes that someone, somewhere will be up to the challenge of taking on Safelite®. After all, since that 17-year run where the Bruins won 15 NCAA Division 1 Men’s Basketball Championships….they’ve only won one Championship Game since and that was in 1995.

One of President Ronald Reagan’s favorite jokes was,

Worried that their son was too optimistic, the parents of a little boy took him to a psychiatrist. Trying to dampen the boy’s spirits, the psychiatrist showed him into a room piled high with nothing but horse manure. Yet instead of displaying distaste, the little boy clambered to the top of the pile, dropped to all fours, and began digging.

“What do you think you’re doing?” the psychiatrist asked.

“With all this manure,” the little boy replied, beaming, “there must be a pony in here somewhere.”

So I am optimistic that something will happen to level the playing field and give others a fair chance to realize their dreams of winning an AGRR Championship Game.

Just sayin’.

Just Sayin’ Blog – Being Average

Average isn’t good enough anymore. On January 24, 2012 I read Thomas L. Friedman’s op-ed (opposite the editorial page) article titled ‘Average Is Over’ in the New York Times. He noted that:

“In the past, workers with average skills, doing an average job, could earn an average lifestyle. But, today, average is officially over. Being average just won’t earn you what it used to. It can’t when so many more employers have so much more access to so much more above average cheap foreign labor, cheap robotics, cheap software, cheap automation and cheap genius. Therefore, everyone needs to find their extra — their unique value contribution that makes them stand out in whatever is their field of employment. Average is over.”

The article is thought provoking. Globalization and information technology has been changing the world in which we live dramatically. There has been an increase in the manufacturing of automotive replacement parts by “cheap foreign labor” that supply the United States automotive service industry. Those parts are being installed by automotive technicians and if you’re a technician in the auto glass repair and replacement (AGRR) industry, the auto body repair industry or other automotive after-market service industries you’re fortunate that cheap foreign labor isn’t installing the parts they supply. Service installation jobs are safe, but just because a job isn’t likely to be replaced by foreign labor doesn’t mean that you shouldn’t raise your game and excel at what you do.

Who wants to consider themselves “average” in their chosen profession anyway? Are you doing anything to raise your game? If you’re an AGRR technician you can improve your skills through the Auto Glass Safety Council Technician Certification program and other trainings resources, if you are an auto body collision repair technician I-CAR Automotive Collision Repair training programs are readily available and if you work in the automotive repair industry you can look to the National Institute for Automotive Service Excellence (ASE) for training programs to improve your skills. Is your employer providing you periodic training to improve your skills from an organization such as the ones listed above? Are you actively seeking training to provide yourself skills that will make you above average in your chosen field?

Average just doesn’t cut it anymore as Mr. Friedman writes. What are you doing to separate yourself from others in the industry you work and to raise your skills above those that are average?

Don’t ever allow yourself to be just average.

Just sayin’.

Just Sayin’ Blog – Decisions

A couple of weeks ago my mother experienced shortness of breath along with chest pains. Two hours later she called her sister who lives close by and told my aunt she was thinking that she should go to the emergency room. They could’ve called 9-1-1, but instead together they made the decision to have my aunt drive my mother to the closest emergency room in a hospital about 30 miles away.

My aunt is 91 and my mother is 90……

They made it to the E.R. and after a few days in hospital my mother was released and is doing fine. I talked with them about whether they thought they really made the best decisions to drive down themselves based on the symptom’s my mom was experiencing, the fact that ambulance service was readily available and that it was snowing that day. I hesitated to mention their age to them.

They both are very independent women who have great genes. I’m very happy that they both are very independent and it’s great that they rely on each other, but they reluctantly agreed that they probably made a bad decision even though it turned out okay so it wasn’t that bad of a decision. I suggested that perhaps they should’ve called 9-1-1 and they said that next time they would. I’m not so sure they will though.

If you look up the definition of decision in the Merriam-Webster Dictionary you will find:

“a determination arrived at after consideration”.

We make countless decisions every day just like my mom and aunt did. There are good decisions and bad ones, and all are based on a myriad of bits and pieces of information that we take into consideration. Most decisions we make are uneventful, but some carry great consequence for those who can be affected by them. Consequential decisions are often forks in the road and generally require more information and greater evaluation of the right or wrong road to follow. Those consequential decisions will most likely be based on the values or principals you hold. They therefore provide a clear view of who you are and what is truly important in your personal and business life.

You can be decisive in your decision making or you can hesitate and be indecisive.  Indecision makes all decisions more difficult because when you’re uncertain, unsure of your decision, it will often lead to less-than-positive results. Even after giving great thought and consideration to a decision it can turn out badly, but with careful consideration and a look at all the information available, those difficult decisions you make tend ultimately to be the right ones.

If you’re an auto glass shop owner or manager you make decisions relating to whom you hire to work for your company. You decide what kind of on-going training you provide to your employees. You decide the quality of the auto glass you buy for them to install and you make a really big decision on the urethane adhesives that you buy for your auto glass technician (AGT) to use when they install windshields for your customers.

Does the urethane you buy cure in 1 to 4 hours and provide a safe drive away time for your customers and their passengers? Do you tell your customers when their vehicle is safe to drive? Is it really safe for them to drive? As the shop owner it’s your decision. You make a decision on whether your company will join the Auto Glass Safety Council and follow the Auto Glass Replacement Safety Standard – AGRSS® as a registered company or not. If you become an AGRSS Registered Company you open your doors to an independent 3^rd party validation process proving that you adhere to AGRSS®. That decision is important to all consumers who expect that their auto glass replacement is installed safely. I strongly feel that supporting the Auto Glass Safety Council is an easy decision for anyone who provides auto glass replacements to consumers. What do you think?

Your AGTs are responsible for making decisions when they are installing auto glass too. An AGT could make the decision to take a short-cut during the installation, or he could go forward and complete an installation of a windshield where a rust issue exists which could cause an adhesion problem effecting the safe installation of the glass. Or he could contaminate the surface of the pinch-weld or glass, he could use an outdated urethane which could affect the adhesion of the glass installed, etc. Whether your company is a small one or the largest, you have AGTs making decisions that affect safety with each install. Are they making the right decisions for your customers?

When an insurance company makes decisions regarding which company it chooses to replace auto glass for policyholders, what information do you think it uses to make those decisions?  What information do you think is important for agents or brokers who are in a position to recommend auto glass service providers to policyholders? 

What are the key drivers for these decisions?  Quality should certainly be the key driver. Price is also certainly a factor as is the importance of an efficient claim handling process for the insurance company, agent and/or broker.  The service and convenience provided to the policyholder should also be a factor in the decision making of those who are in a position of influencing where a policyholder has their glass replaced. Neither the steering of a customer to a particular AGRR company that also happens to be answering the call for the insurance company nor the practice of handing a gratuity to the agent/broker should be a part of the decision-making process. Sadly it is. What do you think the key factors for those making these important decisions should include?

We all have had to make many consequential personal and/or business decisions over the years. When we make those consequential decisions they often affect not only you and your family, but they also often have an unintended effect on others too. They aren’t easy, but they say a lot about your character.

The last stanza of the poem “The Road Not Taken”, penned by the great America poet Robert Frost says:

I shall be telling this with a sigh

Somewhere ages and ages hence:

Two roads diverged in a wood, and I—

I took the one less traveled by,

And that has made all the difference.

Just sayin’…….