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For Your InformationPosted 5/10/1999By Ken Roberts
As a shop owner or manager, how many decisions do you make in a day? There are personnel matters that must be resolved. Decisions on marketing your business. Government and regulatory compliance issues. Purchasing decisions. Do you rely only on yourself when making a business decision? Or, over time, have you developed resources that you trust to guide you when contemplating different options on how to proceed with a business matter? The shop owners and managers interviewed for this article have cultivated a number of sources for information. It's impossible to be an expert on every issue you encounter when running a business. Fortunately, it's easy to find advice on virtually anything you're likely to encounter. This article looks at personnel and marketing issues. Next month, we'll focus on purchasing decisions and government regulations. Personnel Decisions Charlie Elder, owner of Ray Gordon Brake Service in Tallahassee, Fla., said he relies on a number of sources for information about personnel laws, including laws related to hiring and firing employees. Newsletters and business journals published by the Florida Chamber of Commerce and the Florida Retail Federation provide Elder with sound, practical advice, he said. Statewide retail associations and chambers of commerce can be found in all 50 states, so information like that Elder receives in Florida is available to ASA members regardless of where their business is located. "I also receive general information, but good information, on hiring and firing do's and don'ts from national publications such as Kiplinger's," Elder said. Nick Gojmeric, owner of Collision Plus in Swansea, Ill., said he has tasked an administration manager with keeping current on employment law. The manager, Gojmeric said, subscribes to personnel books and magazines to stay abreast of this subject. Both Elder and Gojmeric said they do not hesitate to consult with a labor law attorney when clarification is needed on specific issues. Aaron Clements, president of C&C Automotive in Augusta, Ga., relies on a number of resources for insight and guidance when faced with a personnel matter. "I read AutoInc. magazine and Motor magazine when they have articles on this subject,"he said. Another source Clements turns to is a roundtable group comprised of members of his local chamber of commerce. The participants in this roundtable are small business owners from a variety of industries and professions. "It's a diverse group and we learn from each others' experiences," he said. The group does not include more than one person from a particular industry. That way, Clements said, the participants are not worried about sharing ideas with potential competitors. This allows for a free and open exchange between the participants. As keeping good technicians becomes increasingly difficult and competitive, many shops are paying their employees better and providing more and better personnel benefits. When establishing salaries, you have to be compatible with what other shops and industries in your area are paying. If your wages are too low, you will have difficulty attracting good employees. If salaries are too high, your cost of doing business can quickly reach a point that endangers your business earnings. Mike West of Southtowne Auto Rebuild, Inc. in Tukwila, Wash., said his shop competes with aviation giant, Boeing, for employees. To make certain his pay scale is in line with other garages in this area just outside Seattle, West said he surveys other shop owners to see what they're paying. Southtowne also utilizes a system of annually reviewing every employee and their job descriptions. Prior to employee evaluations, each employee also reviews his or her own performance using the same review forms the manager uses. West said he did not try to develop evaluation forms himself, but rather turned to two sources, 3M corporation and the Washington Autobody Craftsman's Association. Clements said industry colleagues he has met through his membership in ASA have proven to be valuable resources when he is looking at salary issues. The president of ASA-Georgia said local and national ASA meetings are a good source to find out about average salary ranges. Industry magazines are also good sources for salary information. As the owner of a brake shop, Elder said he reads Undercar Digest. Each year, the magazine publishes salary surveys. The information, he said, is broken out by shop sales volume and is presented both on a national scale and by regions. Gojmeric said, "I keep my ear to the ground, so I know what the competition is paying. I also know the margins we must have to have a profitable and healthy business." When he's analyzing salary issues in context with working environment, benefits and other matters that directly impact personnel, Gojmeric said his goal is to not be on the bottom tier of anything. Rather, he strives to hit a middle ground on some matters while being the leader on others. This competitive balance enables him to attract good employees, he said. Finding information about benefits - paid vacations and holidays, health and dental insurance, life insurance, 401(k) plans, etc. - is typically an easy task. The difficulty lies in digesting that information and determining what options are best for your business and your employees. Gojmeric said he has learned many things in the years he's owned Colli- sion Plus. When it comes to employee benefits, "You always make things better, not worse," he said. Not all employee benefits have to be a cost item. Gojmeric said he has well defined work rules and regulations that are easily understood and accepted by his employees. This level of communication and understanding of what is expected of each employee and what is both acceptable and unacceptable encourages an open and professional work environment. While it may not be tangible, the value of a good working environment should never be underestimated or overlooked as a benefit of employment in a shop. Elder said that in putting together his benefits package, he looks at what is commonly available in the Tallahassee area, both in and out of the auto repair industry. Elder also turns to publications published by the National Federation of Independent Business, he said. After researching what other businesses and industries are offering, Elder said he tries to give more as a lure for attracting and keeping good people. Clements said he has observed that there is very little written about employee benefits in automotive industry trade magazines. He said he turns to family members, friends and even good customers to see what types of benefit packages their employers provide and what benefits they most value. Their input, he said, often has the greatest influence on the decisions he makes about employee benefits. Marketing Where do you turn for ideas and ways to effectively and affordably advertise your business and the services you provide? Reggie Denney, the owner of a mechanical shop in Eden, N.C., said the first place he turns is his 20-group, which is comprised of shop owners from all parts of the nation. "The group meets three times a year and we always exchange ideas about advertising." These exchanges allow him to learn from his peers marketing efforts that were successful for them and others that were not. Aaron Clements said he looks both internally and externally for marketing ideas. One disadvantage when relying on his own experiences, he said, is that while the lessons learned are extremely valuable, it's a slow process trying different ideas and waiting to see the final effectiveness of each idea. "I've learned a lot from trial and error. But, it's taken years and years to learn what works and what doesn't work," he said. Clements added that ASA meetings, both locally and nationally, have proven to be a great repository of ideas from his industry peers. He also looks outside the automotive industry as well for ideas through his participation in the local chamber of commerce. "By talking to people at ASA meetings and the chamber of commerce, I get some ideas to try or, at least, to think about when I'm looking at different ways to advertise." Mike West said he takes advantage of marketing seminars that are offered at regional trade shows and national shows such as the International Autobody Congress and Exposition (NACE). He also talks to advertising professionals and gets their impressions of what are the most effective ways to spend advertising dollars. West said he uses these sources, the seminars and conversations with marketing pros, when making advertising decisions for his shop. While he looks to outside sources for advertising ideas, West said he makes it a priority to be active and visible in his community. His participation in local government, the Masonic Lodge, a high school vocational education program, and other activities brings him business because people know him, they see him active in the community. When they need a body shop, they bring their car to him. "Don't stay in the shop until 10 o'clock every night and then go back at five the next morning," West advises. "Get out. Get involved. People see you and they come to you." Marketing your business, Nick Gojmeric said, is more than advertising. It also includes such things as locating your business where it's visible. His three body shops are seen by 100,000 motorists every day, he said. Marketing is also billboards, providing a good value, being fair and equitable with insurance companies, and fixing cars right so satisfied customers will recommend you to their friends and families, Gojmeric said. The shop owners interviewed agreed that marketing is not narrowly defined by such traditional things as newspaper advertisements and listings in the Yellow Pages. Marketing is anything that brings a business - or even the owner of the business - some recognition. Although marketing and advertising decisions, like most business decisions, are ultimately made by the owner, those interviewed also said that the research and information gathering process they undergo prior to making that decision is rarely a solitary pursuit. Information Sources Automotive Service Association (ASA) The ASA Web site was recently selected as an automotive Select Site by the Dow Jones Business Directory. The online Information Center in the Members Only area of the ASA Web site contains information from more than 2,000 sources, covering such topics as business management, employee hiring and marketing your business. AutoInc. magazine is also online. Of particular interest for those researching personnel issues may be ASA's annual How's Your Business survey. The three most recent reports on the survey can be found in the November 1996 and the December 1997 and 1998 issues.
Kiplinger's Kiplinger's Web site is very comprehensive. It provides financial news and advice for individuals and small businesses. There are also departments covering such areas as taxes, insurance and financing. In addition to a monthly financial magazine, which you may subscribe to by calling the toll-free number above, Kiplinger also publishes newsletters. The newsletters cover business and economic trends, Washington insights, and tax issues. Sample issues may be viewed online.
National Federation of Independent Business (NFIB) The NFIB is an advocacy organization representing small and independent businesses. Their literature states: "NFIB is a melting pot of commercial enterprise; high-tech manufacturers and family farmers, neighborhood retailers and service companies." The NFIB Web site offers mini-workshops covering issues such as communication, marketing, accounting, technology, and managing. To receive the NFIB magazine, you must be a member of the organization. Individuals may join online or by calling the toll-free number above.
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