Posts Tagged AGRR Magazine
Is there a formula that you use to measure success in your career or to measure the performance of employees of your company that determines the success you achieve? What are the metrics or goals that you follow to measure success (or failure) that drives (inhibits) sales and profits for you company? Having metrics is obviously critical to ensure that employees know what is required of them allowing companies to be successful.
Sports are another example of the importance of metrics and formulas managers and coaches use to ensure success. If you like basketball you’ll know who Rick Majerus was (he passed away in 2012). He attempted to be a walk-on college basketball player for the Marquette Golden Eagles in 1967, but didn’t get a chance to play. Instead he became a student assistant at Marquette. After being an assistant coach to Al McGuire for 11 years; Majerus went on to become a head coach at Marquette, then to Ball State, Utah State and ending his coaching career at Saint Louis. Majerus had a short stint as an assistant coach with the Milwaukee Bucks in the late 1980’s.
During his coaching career he developed a statistics formula he believed a college basketball team needed to achieve in order to be successful. Majerus developed a metric he called the “165 Formula”. It combined three key game statistics that were added together for each individual player on the team. He totaled each player’s shooting percentage during the season for field goals, 3 pointers and free throws; believing that a successful team needed at least one of his players have these three stats add up to a total of 165. Over his coaching career Majerus won over 70% of his games, so he must have found players that he felt could hit his magical 165.
There are a lot of ways to achieve success on the basketball court. Just take a look at men’s college basketball’s current AP number one ranked team the University of Kentucky Wildcat’s. How many players does Coach John Calipari (Coach Cal) have that meet Majerus’ formula? Take a look at the graph below and you’ll see how many.
Now let’s take a look at the team that I follow, the University of Illinois Fighting Illini men’s basketball team to see how they compare against The 165 Formula. As you will see in the picture below (from the game versus the Hampton University Pirates on 12/17/2014), the Illini have four players that beat the formula. Great!
After last Saturday’s game versus the Ohio State Buckeye’s, the season statistics for the Fighting Illini’s six leading players show that Rice, Hill, Eguw and Nunn continue to exceed the formula target of 165.
|Name||FG %||FT %||3-PT %||Total|
|Average as of 1/3/2015||166.7|
So the Fighting Illini has a record of 10 wins versus 4 losses for the year and they are not currently ranked in the AP Top 25 and they’ve lost their first two Big 10 Conference games. You’d think they’d either be ranked or winning conference games with four starters with numbers that exceed 165 as per The 165 Formula Rick Majerus felt was needed for success. Perhaps Illini Head Coach John Groce thinks that they are successful? I’m guessing not as much as he’d like.
Now let’s compare the Fighting Illini to the number one ranked team in men’s college basketball, the Kentucky Wildcats. How many players do the Wildcat’s have that meet the Majerus 165 Formula? Well…..just one.
|Name||FG %||FT %||3-PT %||Total|
|Average of 1/3/2015||140.9|
As you can see the one player on the Wildcats that scored a 165 using the Majerus formula is Tyler Ulis. He became a starter after Alex Poythress was injured after the 10th game of the season so his stats may be an outlier. The Wildcat’s had already found phenomenal success prior to Ulis getting more playing time. With the Wildcat’s averaging 140.9 points (110.4 if you take out Ulis) to the formula and the Illini averaging 166.7 points there must be more to achieving success. Besides the entire team of players performing at a level it also takes the head coach, assistant coaches, trainers and doctors to achieve success. You can add to the mix scouts, recruiters, training facilities, athletic director, along with support from students and alumni. So Coach Cal has obviously found his formula to achieve success at the University of Kentucky. He’s surrounded himself with the best players, along with the all the best people and resources needed to support the team.
So John Calipari (along with Rick Majerus) obviously found a formula that he has used to find success in his career. It’s the same in business isn’t it? Don’t we all want to be Coach Cal? To achieve a consistent level of success you need to develop your own formula. But a key ingredient is the need to surround yourself with the best people, the best team you can find to help you find great success for your organization. It doesn’t really matter what your business is, if you don’t have great people it’s going to be more challenging for you to find success against those you compete with in the marketplace.
Previous blogs on the importance of assembling a great team:
What’s Your Line-up? – December 26, 2012
What’s Your Line-up? – “Updated” – January 17, 2014
As 2013 comes to a close I thought I’d take a quick look back at a blog I wrote in September titled “Wind at Our Backs?” I suggested that “it appears that we may have some wind at our back.” The wind was related to the three key drivers of the automotive glass repair and replacement (AGRR) industry: weather, the economy and miles driven.
The Weather – I wrote that The Old Farmer’s Almanac has a pretty good record at forecasting winter weather. For the 2013 – 2014 winter season, the magazine forecasted that we would be experiencing colder weather and snowfall in many sections of the country. When you take a look at the past month the forecast seems to be a good one. I live in Chicago we’ve seen January and February cold in December already. And we’ve had snow too. If you believe that cold, ice and snow are good for the AGRR industry and you live in markets that experience them, the start of winter in many areas has been good. The map below shows the snow cover in the United States as of today.
Let’s keep hoping for cold, ice and snow for the rest of winter 2013-2014.
The Economy – Economic news continues to be positive with the United States Department of Labor – Employment Situation Summary reported that unemployment rate declined in November to 7.0% from October’s 7.3%. The major U.S. Indexes have soared to new highs the past month, but as someone I know always says “so far things are going well today, but it’s early”.
The Los Angeles Times reported in an article this week titled “U.S. economic recovery is expected to gain strength in 2014” stated, “The nation’s economic outlook has vastly improved in recent weeks with signs of stronger job growth, bigger gains in personal incomes and an improving housing market.” The article pointed out that the economic outlook for the country has improved sharply and that consumer buying is influencing businesses to hire which means that confidence in the both the long and short-term economy.
The positive economic outlook is reported at a national level but what really matters is how are things going in the market or markets you compete. I hope things are going well in the markets in which you compete.
Miles driven – On a trailing twelve months ending September 2013 the U.S. Department of Transportation–Federal Highway Administration (FHA) reports that travel overall was up 1.5% or 3.7 billion vehicle miles versus September 2012. For all of 2013 versus 2012 miles driven is up 0.4%. The only area of the country not reporting an increase year-on-year was the West with a 0.2% drop. The South-Atlantic and the South-Gulf regions both reported a 2.4% increase, along with a 2.0% increase in the North-Central and the North-East a 1.0% increase. Overall miles have increased 9.8 billion miles driven so far in 2013. The September 2013 Travel Monitoring and Traffic Volume report was good news for the AGRR industry.
An improving economy is helping to fuel this increase in miles driven, but so is the drop in the cost of oil. The graph below shows the rise and fall of gasoline prices during 2013 and as you can see prices are trending lower.
Lower gasoline prices are obviously positive for your business and its helping to increase miles driven by consumers. Let’s hope that 2014 continues this trend.
As reported in an article titled “U.S. roads, bridges are decaying despite stimulus influx” that appeared in the USA Today earlier this year, “Indeed, just 38% of the pavement on roads stretching miles across the USA is in “good” condition…” Bad roads are good for the AGRR industry and as the article points out, “The cumulative cost of these tattered roads isn’t just about dollars and cents. Though poor pavement conditions do cost consumers billions annually in vehicle repair…” With government budgets tight both at a national and state level we’re probably not going to be seeing much money spent on fixing roads and the money that is spent will probably be short-term.
The three key drivers appear positive at the moment. You can probably argue that there are other key drivers in your business today such as the competitors you face in a market. As I’ve mentioned before I believe that you are the key driver in your business. You and the people you surround yourself. Taking advantage of opportunities in the marketplace the best you can as they come up will make the difference in how 2014 starts for you in your business. In talking with a number of people I know in the industry 2013 and the past few years have been tough.
With the three key drivers turning positive as we close 2013 and if you agree that the wind is at your back, what are you going to do in the next year to make your business stand out and drive success?
I hope that you have a Happy Holiday and that the New Year will most definitely be a very good year.
Two of the most respected people in the auto glass repair and replacement (AGRR) industry are Dave Taylor and Cindy Rowe-Taylor who together built Cindy Rowe Auto Glass into the dominant AGRR company in much of Pennsylvania and Maryland. They retired to Florida a few years ago and spend much of their time cycling the world and enjoying their lives.
At Auto Glass Week™ 2013 that was held in Tampa, Florida last month Rich Campfield, president of the National Windshield Repair Association (NWRA), presented Dave Taylor with a new industry award named in his honor. As a founding member of the NWRA, Dave was a force in helping to mold the organization. Cindy was in the audience during the opening ceremony where Dave was presented with the inaugural award.
While at the Auto Glass Week™ Conference I had the chance to talk with both Dave and Cindy and they agreed to an interview.
DR First, thanks to you Cindy and Dave for taking the time to talk with me today. Special congratulations to you Dave for receiving the NWRA award that was named in your honor. I can’t think of anyone more deserving to be recognized for the work you have done to bring windshield repairs to consumers.
My first question is how do you both like retirement versus the daily challenge of being in the AGRR business?
DT Retirement is terrific. As many folks know, we are avid bicyclists and living in The Villages in Florida is a bicyclists dream come true. We would have retired sooner if we had known had much fun and satisfaction retirement life had to offer.
CR-T Retirement has been an easy transition and so enjoyable. It is not sitting on the couch eating bon-bons, but having a very busy schedule and having such fun being busy.
DR It sounds like you’re both making the most out of retirement. Cindy, what year was it and what was it that drew you to the AGRR industry that caused you to open the first Cindy Rowe Auto Glass store?
CR-T I was a registered nurse for 13 years and decided I wanted to be my own boss. That was when I became aware of the windshield repair (WSR) possibility in my area. In 1979 I started out with my repair kit in the trunk of my Vega, seeing dealers and fleets, where the volume was. No sales experience ever. I loved it from the start. I am the WSR pioneer in the Harrisburg, PA, and surrounding areas. Dave joined me in 1986, working mobile WSR for one year; it was after that year that we bought our first glass shop. We kept on both technicians and learned about replacement.
DR Dave, what was it that you found attractive (besides Cindy) to the industry?
DT Self employment is the short answer. After a 25 year career in department store retailing I wanted to be independent of the corporate world. Joining Cindy’s business was the logical next step. Being able to work together added icing to the cake.
DR What was it Dave that made you such an early and strong supporter of repairs versus replacements?
DT Cindy founded the business as a windshield repair-only business before we had even met. Eventually we expanded from repair to full service. Unfortunately for the consumer, and perhaps fortunately for us, 25 years ago most glass companies were focused on replacement. They probably felt it was best for their glass company. Solid business management practices made repair profitable for us and a well executed repair program gave us a significant and profitable competitive advantage. Providing customers with their best solution to an auto glass problem, be it repair or replacement, was our primary business strategy.
DR This question is for both of you. What can you tell the readers of this blog made the biggest difference in the growth and sustainability of Cindy Rowe Auto Glass over the years?
CR-T Staying ahead of the industry with their many changes, starting with the early 90’s and on. Customer service was not to be compromised and keeping valued employees. Early on, Dave and I decided that advertising heavily and educating the public would do well.
DT Consistently providing the best quality service to customers and aggressive brand building through media and public relations.
DR I know that in my own career finding the right mix of people made all the difference in my finding success that I’ve enjoyed. At Cindy Rowe how were you both able to always ensure that you surrounded yourself with the best people, that you got the best from them and what advice can you offer those in business today as to that importance?
DT Choose wisely, treat kindly.
CR-T Fairly early on, we decided to hire people “green” and train them, offer good benefits, keep them abreast of the industry and give some autonomy.
DR At Cindy Rowe you provided consumers in the Pennsylvania and Maryland markets you served with AGRR services, but you also offered paint-less dent repair. Would you suggest paint-less dent repair (PDR) as an additional product line that for those in business looking for additional revenue streams? And if not paint-less dent repair are there other products you think work well in today’s AGRR business?
DT PDR is a profitable but technically challenging service. While it worked for us, it has proved difficult for many AGR companies to integrate into their businesses. I like what I saw during Auto Glass Week’s joint event with the window film industry. We would have given window film a thorough evaluation.
DR Something that some may not have known about you Cindy is that you are a registered nurse and that you’ve donated your time and expertise to those in need while in business at Cindy Rowe Auto Glass and still to this day being retired in Florida. Were you a registered nurse when you first started Cindy Rowe Auto Glass?
CR-T Yes, for 13 years. In 2002 I took the “Refresher Course” for RN’s and have been volunteering since in an area where uninsured patients are treated. It is gratifying to be able to give back in some capacity.
DR What traits or experiences in your background Cindy gave you the ability to find such success in business?
CR-T I would guess perseverance, honesty, not afraid of working extra (lots of that for years), organization and time management skills.
DR Here is a question for you both. Using radio and/or television advertising was a way that you got your name out into the marketplace and helped establish and differentiate Cindy Rowe Auto Glass. It is expensive to advertise on radio and television. When you look back at the genesis of Cindy Rowe through the day you departed the business, what was it that caused you to make that decision to spend money on that form of advertising?
DT When we expanded from being a car dealer driven windshield repair only business to full service auto glass, we were the new kids on an already crowded block. Capturing the customer through the traditional referral routes would have taken a decade or more. So we went directly to the customer with Radio/TV and created an awareness and demand for our brand. When TPA’s began to capture significant market share, our brand building paid off handsomely. We were the only AGR company anyone in our markets had ever heard of and they asked for us. We never anticipated TPA’s when we began our brand building but brand building saved our skin when TPA’s took over most of the insurance business.
Radio/TV and now internet are the effective media tools to build your brand with the general public. To influence “choice” at TPAs we wanted to be top-of-the-mind before the customer calls the TPA. Branding is a prerequisite to being “chosen”. While media is expensive, aggressive purchasing strategies can help control the costs.
DR Here’s a non-industry question. You mentioned that you are avid cyclers. Can you tell me what countries you’ve cycled and as a follow-up what you’ve learned about yourselves in your cycling adventures?
CR-T Cycling helps keep one in good physical condition and it really is a focus issue while on the bike – lots of issues to watch out; cannot daydream.
DT United States, Canada, Bermuda, Denmark, Germany, Austria, Italy, France, Luxembourg, Slovenia, Hungary, Lichtenstein, South Africa and Switzerland.
DR One thing I’ve noticed is that you both smile quite a bit. Can you say you’re both happier now that you’ve left the industry? What is it you miss being in business?
DT Happier? YES! What I miss about the business is the daily challenge to effectively manage the unending stream of issues. In retirement I can choose easier and less stressful challenges.
CR-T I look at it as another chapter in life. I have always loved my work, but times change and I am now thoroughly enjoying retirement with Dave. One of the things I missed when we first left was seeing the people in the office. My people spoiled me and it did not go unnoticed by me!
DR My thanks to you both for taking the time to answer my all of my questions.
For those of you who haven’t had the opportunity to meet Dave and Cindy I can tell you from personal experience with them that they are good people. Truly fine people; who have effected and changed the lives of those that have come into contact with them over the years. Whether that interaction was in the business they operated together, the AGRR industry they both left their mark on or in their active community service over the years, both Cindy and Dave have given their time to those who sought them out or they felt needed their help.
The industry has been made better by their being a part of it and I hope that they continue to be active in helping to improve it in the future.
As we near the end of the first three quarters of 2013, it appears that we may have some wind at our back. There has been some slight improvement in a couple of the key drivers of the automotive glass repair and replacement (AGRR) industry. The key drivers of the AGRR industry are weather, the economy and miles driven.
The Old Farmer’s Almanac has been published since 1792 and is “North America’s most popular reference guide and oldest continuously published periodical”. Forecasting the weather is a specialty of the Almanac and the publication touts an 80% success rate at correctly forecasting winter weather. The Almanac recently published the weather maps for 2013 – 2014. The Almanac is forecasting the following weather for regions they report for this coming winter:
- The Northeast a winter milder in the North and colder in the South with slightly above average snow in the region;
- In the Atlantic Corridor a colder winter with snowfall above normal;
- The Appalachians will see a colder winter with snowfall near normal;
- The Southeastern United States will see colder weather and above normal snowfall;
- In the Lower Lakes temperatures will be slightly milder with below normal snowfall;
- In the Ohio Valley area winter will be colder, along with below normal snowfalls;
- The Upper Mid-West will be a mixed bag with a warmer winter in the eastern part and below normal in the western part of the area. Snowfall will be above normal;
- The Heartland will be colder than normal this winter and snowfall near normal;
- The rest of the country is expected to be colder than normal with average to above average snowfall;
All-in-all a mixed bag with the weather and I hope that wherever your business is located you’re benefited by a colder and snowier winter.
The economy is also a bit of a mixed bag. Positive news came from new car sales which can be an important factor in an improving AGRR industry. J.D. Powers detailed year-on-year improvement in new-vehicle sales in the United States by reporting in their August 2013: Monthly Automotive Sales Forecast that “August new-vehicle sales reached the highest level in seven years.” The report went on to state, “New-vehicle retail sales in August 2013 are projected to come in at 1,270,400 units, 12 percent increase from 2012”. That’s great news for the AGRR industry. J.D. Powers is predicting growing new-vehicle sales for the remainder of 2013 and well into 2014. Really great news for the AGRR industry!
CNNMoney reported this past week in an article titled, “Jobless claims fall to 7-year low, but…” the rate of unemployment showed signs of dropping which is great news, but is tempered with the suggestion that it’s a result of people continuing to drop out of the work force. There are “11.3 million Americans who remain unemployed” the article reported with “three unemployed people for every job opening”. As with the weather, unemployment figures vary by region so its how your local economy is doing is what could affect how good your business will be in the next year.
The price of oil and how oil prices effect gasoline prices is another key part of the equation for the AGRR industry. As reported by the United States Energy Information Administration in the “Gasoline and Diesel Fuel Update”, prices year-on-year through September 9, 2013 on regular gasoline show that prices are down $ 0.26. Lower gasoline prices are great for both the consumers we rely on for business and for all of those company vehicles providing mobile service. Hopefully the price of gasoline will stay low.
You can look at reports from the U.S. Department of Transportation – Federal Highway Administration (FHA) as positive or negative depending where you reside. The FHA showed in its June 2013 Travel Monitoring and Traffic Volume Report that year-on-year miles driven were relatively unchanged with a slight decline of 0.1% from June 2012. The news that miles driven is not showing growth wasn’t great news for the AGRR industry that thrives on vehicles out driving on roads, but staying level was better news than a drop.
So how are these three key drivers affecting your business and do you think the wind is at your back? Regardless of whether the wind is at your back or not, I think there is a fourth key driver to your business and it is the most important one for finding success in your business. That key driver is you. So how are you going to take advantage of the marketplace you compete? What is it you’re doing to make your business stand out among all those with whom you compete?
I’ve written in previous blogs “The Times They Are (Always) A-Changing” and “The Times They Are (Always) A-Changing – Part II” about the opportunities in the marketplace for AGRR companies. I strongly believe that there are opportunities for independents in our industry, but you’ve got to surround yourself with the best people and make sure that they are all committed to the goals and aspirations that you have for your business. If you haven’t got that you’re going to be struggling.
What else are you doing to separate yourself from your competitors? Look for ways to be successful and be relevant in your market so that you stand out. There is a recipe for success in your market and you’ve got to figure out what it’s going to take to make sure you find and keep being successful. It starts with you as you’re the key driver of your business.
If the three key drivers are beginning to turn to your favor and with the possibility of the wind at our backs, what is it you’re going to do in the next year to see that you not only survive, but thrive in the AGRR industry? It’s really up to you.