Marketing Isn’t Here to Just Make Things Pretty

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Marketing Isn’t Here to Just Make Things Pretty

Learning Without Scars is pleased to introduce our new guest writer, Stephanie Smith. This week marks her debut blog post for LWS, with “Marketing Isn’t Here to Just Make Things Pretty.”

Stephanie Smith, a seasoned marketing strategist with over 15 years of experience across blue-collar industries like manufacturing, agriculture, and heavy equipment. After serving these industries, she identified a crucial need for strategic marketing solutions across all blue-collar industries. 

With a proven track record of developing collaborative sales and marketing strategies that drive new revenue growth by leveraging new technologies Steph’s passion for supporting blue-collar workers and their businesses led her to a pivotal point in her career to launch a startup marketing community. Dedicated to delivering go-to-market strategies specifically crafted for small to mid-sized business structures in these industries, The Grind Marketing Collective helps companies navigate digital transformation and thrive in today’s business landscapes.

As the Founder of The Grind Marketing Collective, Steph leads a team of talented professionals responsible for developing and executing innovative and impactful marketing campaigns that drive brand awareness, customer engagement, and revenue growth for the companies they serve.

Stephanie is always open to connecting! To contact Stephanie visit thegrindmarketingcollective.com or email her at stephanie@thegrindmarketingcollective.com

Throughout my career, I’ve had the pleasure of serving many blue-collar industries from manufacturing to agriculture to heavy equipment – While all seem different on the surface, there have been many overlapping themes that linked each of these experiences together. 

The top reoccurring theme has been the misconception of what marketing is and how it can benefit their overall business. 

If an organization did embrace it initially, marketing was frequently considered a task to be tackled only if time and resources allowed. In many organizations, it was even delegated to whoever had a spare moment, often falling into the lap of administrative assistants as an additional duty alongside their primary responsibilities.

While it’s true that basic marketing tasks can be learned by almost anyone, effective marketing requires a combination of creativity, strategic thinking, analytical skills, and domain knowledge. It’s a specialized field that benefits from dedicated professionals with the expertise to navigate its complexities.

That’s typically where I would come into the organization.

At some point, the organizations I’ve served recognized the need for integrated marketing strategies. I’ve been fortunate enough to work for more progressive organizations that have understood the power of embracing new marketing strategies and that customer buying behaviors change over time.

Marketers are no longer just responsible for generating brand awareness, creating flyers, planning events, and running the company website. They need to think carefully about each stage of the buyer’s journey and work collaboratively with the Sales Team to create go-to-market strategies that help to break through the noise to capture the minds of potential customers.

As business landscapes continue to evolve and competition intensifies, the importance of marketing cannot be overstated. It’s no longer sufficient to simply offer a great product or service; it’s equally important to effectively communicate your value to potential customers. In today’s digital age, where consumers are bombarded with a constant stream of information and choices, effective marketing is the key to breaking through the noise.

Mobile devices, apps, machine learning, automation, and much more allow customers to get what they want almost exactly at the moment they need it. The point of difference for your company will be you providing answers to your customers’ questions in a way that they can access and empower them to take action.

We are living in a day and age where access to information and solutions are endless.

Changing the status quo for our industry.

Recognizing this need for adaptation, and that many blue-collar companies need assistance navigating the challenges of digital transformation is why I decided to leave my traditional marketing role. Leading me to embark upon the journey of establishing a marketing consultancy dedicated to aiding companies in this transformative process.

Moreover, the allure of helping businesses unlock their full potential in the digital realm is a powerful motivator. This is more than a career—it’s a calling! There’s a unique joy in witnessing a client’s transformation—from finding their digital footing to confidently navigating the online landscape with finesse.

The heavy equipment industry has always been based on relationships and handshakes. That hasn’t changed, however, the landscape in which the relationship is built has.

At The Grind, our mission is simple: to help businesses identify gaps in their go-to-market strategies and implement creative marketing tactics that benefit their bottom line.

In this new venture, I look forward to continuing to push boundaries while introducing game-changing strategies to blue-collar industries and running alongside a team driving digital transformation, helping businesses adapt, and ensuring they not only survive but thrive in today’s business landscape.

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What Is an Industry Analysis and What Can It Do for Your Business?

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What Is an Industry Analysis and What Can It Do for Your Business?

Guest writers Debbie Frakes and Steve Clegg are back with another resource available to businesses in “What Is an Industry Analysis and What Can It Do for Your Business?”

Equipment dealers only have a limited number of resources at their disposal. The key to being successful is allocating those resources in the most productive, efficient way possible. When it comes to your marketing and sales efforts, it’s impossible to target everyone. You must make important decisions about who to go after based on who will produce the most value for your business. 

The key is to target potential customers who are most likely to work with you. An industry analysis tells you who those people are. 

What is an industry analysis?

Zintoro conducts your industry analysis by determining which industries are most prevalent in your customer list. By looking at Standard Industrial Classification (SIC) codes, you can identify which industries your different customers are in and which industries you do business with most often. 

Part of the industry analysis is looking at the customer count, sales volume, revenue, number of potential customers, and a variety of other key metrics for every SIC code found in your list. That way, you can understand the market potential for each segment of your current customer base and how much value they can produce for your business. 

Armed with the knowledge of your customer base and the revenue potential of different industries, you’ll be better informed on which new prospects to target with your limited resources. An industry analysis helps you focus your time, money, and effort on increasing your market share in the industries that you know have the most potential for your equipment dealership. 

Use what the industry analysis tells you.

Conducting a Zintoro industry analysis gives you a better understanding of your customers and how valuable different segments of your base are. Once you know who will deliver the greatest return, you will know where to invest your marketing and sales resources. More than just giving you directions, an industry analysis also helps you tailor your messaging, exclusive offers, and even inventory to appeal to the most valuable segments in your customer list. 

For example, if you sell excavators, but you find out that most of your customers exclusively oversee demolition projects instead of digging jobs, then you can change your marketing and sales messaging to match that. In your emails you can use pictures of excavators demolishing a building and highlight features of the machine that are most useful on demo jobs. The more targeted you are at the customers that produce the most value, the fewer resources you’ll waste going after customers who are less likely to work with you.

Start better understanding your customers and your business by contacting Zintoro for an industry analysis today! 

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Perpetual Growth of Leaders Through Lifelong Learning #MondayBlogs

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Perpetual Growth of Leaders Through Lifelong Learning #MondayBlogs

Guest writer Virginia Cooper returns this week with another look at ongoing education in “Perpetual Growth of Leaders Through Lifelong Learning,” our contribution to #MondayBlogs.

In an ever-evolving world, the concept of lifelong learning stands as a cornerstone for community leaders. It’s not merely about the accumulation of knowledge but rather a continuous journey of personal and professional development. This article from Learning Without Scars aims to underscore the significance of lifelong learning for community leaders, focusing on how it can shape their skills, perspectives, and effectiveness. By embracing a culture of perpetual growth, leaders can better serve their communities and foster environments of innovation and resilience.

Enhancing Leadership Abilities

Strong leadership is not an innate trait but a skill honed over time. Lifelong learning plays a pivotal role in this process.

  • Adopting New Leadership Styles: Exposure to diverse perspectives encourages leaders to adapt their leadership style to different situations and individuals.
  • Strategic Decision-Making: Continual learning fosters the ability to make informed, strategic decisions in the face of complex community challenges.
  • Emphasis on Self-Discipline: The essence of leadership lies in self-discipline. It enables leaders to model the values and work ethic they wish to see in their community.
  • Conflict-Resolution Skills: Learning about and experiencing various conflict-resolution strategies equips leaders to handle disagreements constructively.

Furthering Your Education

The pursuit of formal education, at any stage of life, can significantly enhance a leader’s expertise and credibility.

  • Online Computer Science Degree: When a person works to complete your online computer science degree, leaders are empowered with digital literacy, which is crucial in today’s technology-driven world. 
  • Interdisciplinary Studies: Engaging in interdisciplinary studies broadens a leader’s understanding of various sectors, promoting a holistic approach to community development.
  • Cultural and Ethical Understanding: Courses in cultural studies and ethics enhance a leader’s ability to navigate and respect diverse viewpoints and moral considerations.

Networking and Collaborative Learning

Lifelong learning often involves stepping out of one’s comfort zone to connect with others, fostering a network of collaboration and support.

  • Joining Professional Groups: Engaging with professional networks offers opportunities for collaboration, mentorship, and shared learning.
  • Attending Workshops and Conferences: These gatherings provide a platform for exchanging ideas and staying abreast of current trends and challenges.
  • Community Engagement: Participating in community events and projects helps leaders understand the real-time needs and dynamics of their constituents.

Staying Abreast of Technological Advancements

In a rapidly changing technological landscape, staying updated is key for effective leadership.

  • Regularly Attending Tech Webinars: This keeps leaders informed about emerging technologies and potential applications in community development.
  • Hands-on Experience with New Technologies: Experimenting with new tools and platforms enhances a leader’s ability to integrate technology into community initiatives.
  • Promoting Digital Literacy in the Community: Leaders can advocate for and implement programs that increase the community’s engagement with technology.

Personal Development and Wellness

A leader’s personal well-being is integral to their effectiveness and resilience.

  • Mindfulness and Stress Management: Learning and practicing mindfulness techniques can help leaders manage stress and maintain clarity of thought.
  • Physical Fitness: Regular physical activity contributes to overall health, energy levels, and mental sharpness.
  • Lifelong Reading Habit: A habit of reading not only expands knowledge but also promotes empathy, imagination, and cognitive flexibility.

Lifelong learning is an indispensable tool for community leaders. It equips them with the necessary skills, knowledge, and perspective to navigate the complexities of leadership effectively. By committing to continuous personal and professional development and furthering their education, leaders can inspire change, foster community growth, and create a lasting impact. In this journey, the pursuit of knowledge becomes not just a professional obligation but a personal mantra for growth and resilience.

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Effective and Affordable Lifelong Learning Strategies

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Effective and Affordable Lifelong Learning Strategies

Learning Without Scars is pleased to introduce a new guest writer and fellow educator this week. Virginia Cooper is a retired community college instructor. She always encouraged her students to see the real-world value in their education, and now, she wants to spread that message as wide as possible. Her hope is that Learn a Living will be a go-to resource for adult learners embarking on starting, continuing, or finishing their education. Her first blog post for LWS is this week’s “Effective and Affordable Lifelong Learning Strategies.”

As we grow older, learning new things can fuel fulfillment, boost cognitive agility, and ensure lively social connections. This guide, courtesy of Learning Without Scars, delves into cost-effective approaches for integrating continuous learning into daily life, thus paving the way for sustained success and personal enrichment.

A Gateway to Adaptability and Progress

Lifelong learning transcends acquiring new abilities; it’s a mindset that nurtures adaptability and resilience. It not only facilitates career enhancement and intellectual growth but also enriches personal life, fostering a sense of achievement and adaptability in an ever-changing world. By embracing this mindset, individuals position themselves to navigate the complexities of modern life with agility and confidence.

Embrace Online Learning

The digital era has transformed the landscape of education, presenting an abundance of online learning platforms. With these available programs, individuals can delve into new areas of study and enhance their skill sets without a hefty financial burden. Their flexible and user-friendly nature accommodates varying schedules and learning styles, making education more accessible. For example, if you wish to become well-versed in IT, you can explore this further by pursuing an online degree that provides deep knowledge of programming, coding, and cybersecurity. 

Open Educational Resources

The realm of Open Educational Resources (OER) presents a cost-free avenue for accessing a tremendous range of educational materials. From comprehensive textbooks to in-depth lectures and interactive modules, these resources offer a no-cost solution to high-quality education. They cater to diverse learning needs and interests, facilitating the exploration of new academic territories without financial constraints.

Libraries and Workshops

Public libraries and community centers are unsung heroes in the world of lifelong learning. Beyond their traditional roles, they offer a plethora of free learning materials, workshops, and educational programs. These community resources are pivotal in providing accessible learning opportunities, fostering a culture of shared knowledge and community-driven education.

Free Webinars and E-Resources

Webinars and other electronic resources, often shaped by industry experts, are a treasure trove of knowledge and insights available at no cost. For everything from proper welding techniques to how to code, they offer perspectives and information that can be pivotal for both personal and professional development. These options, accessible in various formats, are a testament to the accessibility of quality education in the modern age.

Listen and Learn

Podcasts have revolutionized the way we consume information, offering a convenient medium for learning during otherwise occupied moments like commuting or exercising. They cover a diverse range of subjects, providing insights on everything from historical or scientific research and findings to learning how to diversify your portfolio through real estate investments. This format makes it possible to stay informed and inspired, turning routine activities into opportunities for intellectual enrichment.

YouTube: A Visual Learning Adventure

YouTube has emerged as a powerful educational resource, highlighting a vast array of channels dedicated to topics ranging from science to the humanities. These channels provide compelling and educational content, appealing to learners of all ages and backgrounds. 

By regularly tuning into these channels, Sophie Pomme notes individuals can continuously enrich their knowledge base, effortlessly blending education into their daily digital routine. This practice not only enhances learning but also encourages a culture of curiosity and lifelong education in an easily accessible format.

In today’s dynamic world, a commitment to lifelong learning is indispensable. By leveraging these affordable and accessible strategies, continuous growth and development become an attainable goal for everyone. Whether through digital platforms, open resources, community involvement, or multimedia content, the learning opportunities are limitless. Embracing lifelong learning as a lifestyle choice opens doors to a world of personal and professional fulfillment.

For training solutions for heavy equipment dealerships, visit Learning Without Scars today!

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Equipment Dealer Strategies for Growing Sales

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Equipment Dealer Strategies for Growing Sales

Guest writers Steve Clegg and Debbie Frakes return with their blog this week covering the ways you can create lifelong customers in “Equipment Dealer Strategies for Growing Sales.”

The key to sustained success in selling equipment, parts, and service is to create long-term customers. And creating long term customers comes down to following several equipment dealer strategies that show your customers you care about their businesses and are invested in helping them grow their businesses, and that you know what works. Here are the golden rules for dealers that you need to follow:

  1. Never make your problem the customer’s problem; they have enough problems of their own, which is why they are calling you.
  2. Always say YES! Then, the question becomes when and how much.
  3. Be proactive and contact the customer before they contact you.
  4. Manage your customers’ expectations. Customers often don’t remember what you told them; they only remember what they expected to happen.

In this article, we’re going to cover these rules and strategies, and how they make you more effective at selling equipment, parts, and service, all while developing more loyal customers. 

Be positive with customers and say YES! 

When talking with customers, you should always be finding a way to solve their problem. For example, if one branch doesn’t have the part they need in stock, find the part at another location, and tell the customer when they will receive it. You don’t want to tell a customer that you can’t do something, you want to tell them how you can. If you start with a positive reply of what you can do, there’s a 70% chance of closing compared to a 50% chance if you start with a no. If you’re the dealer that can effectively solve their problem, then you will continue to be their source for equipment, parts, and service for them. 

How to respond when a customer needs a product or service from you. 

Being positive and solving the problem shows the customer that you understand their needs and care about their problems. Here is an example of the hierarchy of responding to customers: 

  1. Tell them you have exactly what they need and when you can get it to them. 
  2. If you don’t have it at a particular branch, check other locations and give them options for delivery or pickup. 
  3. If you need to order a part, figure out how long it will take for delivery, and provide options for delivery. 
  4. If the timeline of receiving the product or service doesn’t work for them, suggest other options that could work for them. 
  5. Always tell the customer the next step and provide details of how you can solve their problem.

Stay on top of communication. 

It’s your job to keep customers informed of service updates and order status proactively. If they must call and ask about something to get an update, it’s too late. One of the most important dealer strategies is to anticipate their questions and stay ahead of them. You also need to understand which forms of communication they prefer, and when is the best time to contact them. Communicating with customers on their own terms will make it easier to reach them and shows that you respect their time.

Answer the phone every time. 

Answering the phone is critical for effective customer communication. Your team should be picking up on the third ring or sooner. The reason is that the call drops off rate is 20% per ring after three rings, and customer frustration is exponential for each additional ring and every missed call. Because only 2% to 4% of callers will leave a voicemail, answering the phone is an important first step in understanding what their needs and problems are. If you’re consistently not answering the phone or a customer has several bad phone experiences, they will start to look for another company they can work with for their equipment needs. 

Managing expectations. 

Managing expectations at every point of contact with your customers opens the opportunity to create a raving fan or to lose the customer. One of the most important equipment dealer strategies we can share with you is to always undersell and over deliver. Customers will eventually leave you for the competition if you are consistently falling short of your promised timelines. In fact, the number one reason for losing customers is mismanaged expectations. Be honest with them about when they will receive equipment and parts, when service will be completed, and your rental availability. Honesty and managed expectations will develop trust and strengthen relationships.

Our partner, Zintoro, can help. 

By consistently providing value and outstanding service, you can build long-lasting relationships with your customers and increase their loyalty to your brand. Zintoro provides you with the monthly analyses of your invoices that show your customer retention rate, which customers you’re in danger of losing, customer purchase behavior that will help you anticipate their needs, and much more. They give you the tools and data you need to keep customers, improve communication, and increase your sales. 

Schedule a Zintoro demo to find out how to boost your customer retention, track and accurately forecast business performance, and better communicate with customers. 

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Struggling to Find the Right Employees for Your Dealership?

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Struggling to Find the Right Employees for Your Dealership?

Guest writer John Dowling has a timely blog post this week. We are always hearing about the difficulties employers face when trying to find quality employees. Read “Struggling to Find the Right Employees for Your Dealership?” to learn more.

Are Recruiting Firms a Good Investment? Well, it depends on the firm. Do they have an excellent reputation? Are they 5-star rated? Do they have a guarantee? Do they know your industry? Do they embrace technology to drive efficiency in their process? If the answers are “yes” to all the above questions, then there is a good chance the recruiting firm will positively impact your ROI. A better question is, “Do I need a recruiting firm to be successful?” We could also ask, “Why should I use a recruiting firm to staff my dealership?”

It doesn’t matter what business book you read or what successful owner you talk with; they will always indicate that what drove their success was their people: the company’s human resources. Having the right people is more important than having the right product or business plan. People drive your business’ success. The right people and culture fit is paramount to your dealership’s success. It doesn’t matter if a candidate is qualified, if they are not a good culture fit, they can harm your company.

I worked at a dealership that had explosive growth. When I started, we were about 110 employees; in less than six years, we were over 220. That’s adding over 100 employees, and that does not include recruiting for turnover. A couple of years into it, we realized we needed a full-time HR manager, and I was tasked, on top of all my other responsibilities, to recruit and hire the HR manager. I had taken some HR classes for my degree and was familiar with HR, but I had to do more research to determine precisely what qualities and skill sets are required for a successful HR manager. I posted the job on an online job board. I continued reading articles and HR blogs and reaching out to people I knew in the industry, trying to prepare myself to source, screen, and hire an HR manager.

Well, I was successful, at least at acquiring many resumes. I remember one day, I had over 60 resumes that I had to read and decide if I should set up a phone call or not. About halfway through the stack, I started having resume fatigue. Do you know when all the resumes start looking the same, and you don’t even remember the name of the person you just read? It all just becomes a blur. For the sake of time, I began looking for things to disqualify them versus asking whether they were qualified and would be a good fit for our company. I am sure I passed over some good candidates.

A good friend and successful businessman recommended a recruiting firm to find us an HR manager. After convincing the dealer’s owner that the placement fees would be an investment in our business, they sourced a great candidate within budget. We hired him, and he helped us get to the next level. The HR manager brought years of terrific value to the company, especially compared to the placement fee we had to pay the recruiting firm. It was some of the best money we ever invested in the company.

Recruiting is a full-time job; you will get sub-par results if you try to do it part-time. One of the most significant values of using a recruiting firm is freeing up capacity. Your managers only have so much mental capacity. When asking a busy sales manager, branch manager, or service manager to recruit employees, something will slip off their plate, usually customer service and profitability. It would be difficult to calculate the exact loss of potential income and customer satisfaction because the manager focuses on recruiting rather than their primary responsibility.

You may say, “We have an HR manager,” or “We have a full-time recruiting staff.” That might be true, but Jay Lucas, President of JSA, always says, “Recruiting is like a pineapple.” HR managers are juggling compliance, compensation, and employee satisfaction, similar-sized fruit. Then the company president throws in a pineapple, recruiting; it just doesn’t fit. What usually ends up happening is that the pineapple hits the ground, or the HR manager tries to juggle the pineapple, and everything else stops. Recruiting is a full-time job, and a company should always continue recruiting. Would your sales associates be recruiting or working in the shop? No, the sales associates must keep their sales activity funnels full, and I say the same for recruiting: you must keep the recruiting activity funnel full. There is not an on/off switch. Recruiting is a process.

I know some companies have a whole department of full-time recruiters. If you’re large enough, this may be a workable model. However, I would challenge you to determine your actual payroll cost, benefits, oversite, and additional office space for a service that could be outsourced and performed more efficiently. We must focus on what we’re good at.

Heavy equipment dealerships are skilled at selling and servicing equipment. However, recruiting employees for an equipment dealership is different from selling and servicing equipment. Focus on what you’re good at, managing a heavy equipment dealership. Partner with a trusted recruiting firm that specializes in recruiting top talent for the heavy equipment industry. This will be a win-win scenario that will return an excellent ROI for all parties involved.

At Jordan-Sitter Associates, we have an excellent reputation and literally hundreds of five-star reviews to prove it. We have been in the heavy equipment industry since 1978, and we are so confident that we can find top talent that we have a money-back guarantee. We have dedicated recruiters who specialize in different subsets of our industry, be it Dealer, OEM, Sales, Product Support, Operations, or Technicians. Our sophisticated technology stack allows us to source passive job seekers, ensuring we deliver you a qualified candidate who is the “right fit” for your company! To learn more about JSA, visit our website at  https://reputablerecruiting.com/. 

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The CSIs in the Tire Shop #technogeek

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The CSIs in the Tire Shop #technogeek

Our guest writer Bob Rutherford is back this week, along with a new hashtag (#technogeek), to talk technical about the CSIs in the Tire Shop.

At the last TMC meeting there was a lively discussion about the shock absorber and the role it plays in vehicle safety. As with most things trucking related, correct answers can be hard to come by. This is one example. The answer is totally dependent on what type of suspension system the shock has been incorporated into. 

From the textbook* on the subject, here are the various categories of suspensions: 

  Leaf spring 

  Equalizer beam:  leaf spring and solid rubber spring 

  Rubber block and torsion bar 

  Air spring:  pneumatic – only or the combination of pneumatic/leaf spring 

*Above from page 814 fifth edition Heavy Duty Truck Systems by Sean Bennett 

This white paper is concerned with only the air spring only system at this time (in bold above). The reason for this is explained in detail on page 826 about the air spring only system: 

“The primary disadvantage of the air spring is a ZERO ability to dampen suspension oscillations. For this reason, they use auxiliary dampening mechanisms such as shock absorbers.” 

Further research needs to be conducted to draw conclusions about the role of the shock in the other suspension systems listed above. One thing that is known for sure, a monoleaf spring design is very dependent on a working shock absorber as opposed to the multi-leaf spring packs have a self-damping capacity. It looks like the monoleaf design is gaining in popularity for the advertised weight savings of up to eighty-five pounds in some applications.

The more leaf springs in a spring pack the more self-damping against suspension oscillation the system will have. This reduces the need for a working shock absorber in this type of system.  

My conclusion is that on the air spring (AKA air ride) system the lowly shock has been crowned the King of Safety and needs to be recognized as such by all concerned with safety. A properly functioning shock can make the difference between a tire having the proper footprint or merely only having the equivalent of a toe print on the pavement. 

From a braking standpoint, how good is the braking system if the tires are rebounding off the pavement because the shock is worn-out? The shock is the key to keeping the tires on the road. 

Based on comments received on my prior published works I know many in the trucking industry think a shock, even on an air ride system, is not a key safety component. I am sure this is because in their mind’s eye they see an 80,000 GVW just bouncing down the interstate without a care in the world. I don’t look at that scenario; I see the last thirty seconds of an accident where a distracted driver cuts off the big rig and the driver is jamming on the brakes and turning the steering wheel with all the might the driver can muster. At that exact moment, the shocks had better be keeping the biggest and baddest tire footprint on the highway. 

So why would a truck driver drive on bad shocks? As stated, when I quoted the list of suspension systems, if the truck driver and mechanics were used to a vehicle with a leaf spring suspension, maybe worn shocks were never an issue; and that could be a very big “were never an issue.” 

In my research I have found that many tire dealers are not in the shock business and actually benefit in more tire sales when a customer brings back a cupping tire that is not covered under warranty because of a bad shock, other suspension problem, or an out-of-balance wheel end assembly. 

I have found those tire shops that see the future are using the ABC’S system (explained below) for wheel end management and so are fighting an uphill battle. 

Many drivers see a conversation in a tire shop with a CSI tone as the tire shop attempting to pull off a dreaded up sell of an unnecessary shock absorber just to pad the bill. 

Explaining the ABC’S and the CSI conversational tone with the truck owner 

It should be no mystery to anyone who has watched TV during this decade that CSI is short for Crime Scene Investigators. The ABC’S will be explained next. 

Michelin Tire Company has been distributing tire wear analysis charts to tire shops for years. The charts are titled “The Usual Suspects.”  I assume (and hope to verify someday) that someone in the Michelin marketing department saw the relationship between a tire that is dead on arrival (DOA) that like the TV show, there are always certain suspects that the death of the tire can be pinned on. 

The premise of the movie is that every time there was a crime they would round up the usual suspects, perform a crime scene investigation and figure out who done it. 

It is to the advantage of tire manufacturers to showcase the usual suspects as a troubleshooting tool for several reasons. First, they don’t have to warrant the tire and second, they might solve the mystery and have a happy customer in the future. 

I named the usual suspects the ABC’S gang. It is up to someone in the tire shop to look at the tire corpse and figure out who done it. The simple version of the gang members: 

  • Air pressure is not correct. 
    • Alignment issues 
    • Balance issues 
    • Bearing issues 
  • Centering/mounting issues 
    • Shocks & suspension issues 

It is my belief that every tire shop should have a whiteboard near the usual suspects’ chart and use it to explain what happened to the tire. 

I think every tire shop should have a whiteboard to help communicate with the driver about the wheel end system. The whiteboard could start out like the illustration, then be erased, to explain the Usual Suspects chart as it relates to the tire that arrived dead on arrival (DOA). 

As far as explaining that a shock needs to be replaced for safety reasons, the following steps need to be considered. 

First – Know how to identify an air ride suspension that needs good shocks. 

Second – Every new tire that was replaced because it was worn-out should have a new shock, again, depending on the suspension system.

Third – Further research into the cupping issue needs to be done. I think this can be a big tipoff that the shock was not replaced or there is some other unsafe condition, such as an out-of-balance wheel end that is not allowing the tire to have the proper footprint as it rotates down the highway. 

Fourth – I believe once the word is out, most tire shops will be interested in implementing the ABC’S and CSI system for their customers; the problem will solve itself.

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Redefining Excellence – Beyond Firefighting

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Redefining Excellence – Beyond Firefighting

Guest writer Sara Hanks highlights the importance of existing beyond the emergency situation in “Redefining Excellence – Beyond Firefighting.”

In today’s business environment, the spotlight often shines brightest on those who extinguish fires rather than those who prevent fires from igniting. This dynamic has increasingly highlighted the misalignment within companies regarding quality and continuous improvement principles. While saving the day deserves recognition, the diligence of preventing problems goes unrecognized. Over time the motivation to be proactive and focus on process improvement diminishes. This trend undermines the core values of continuous improvement and quality management, but also creates long-term risks to operational excellence and customer satisfaction. When competition is low, this is exponentially worse.

The recent events with United Airlines suggest that companies may have lost their way when it comes to quality and operational excellence. A quick Google Search, or CoPilot prompt can show that 3 incidents occurred recently, which I find rather alarming. If the aviation industry, which is notorious for high regulation, has visible mistakes, what is the culture like in other companies? 

Historical shifts in quality and operational excellence often arise from moments of intense challenge and competition. A classic example is the U.S. automotive industry’s response to the introduction of superior-quality Japanese vehicles in the latter half of the 20th century. American companies to adopted Lean Six Sigma and other continuous improvement methodologies that emphasized defect reduction, efficiency, and customer satisfaction. This begs the question: Are we waiting for another moment to realign our priorities towards prevention and quality, or are we already in the thick of challenge, driven by a post-covid rut.

Regardless, it’s imperative for organizations to adopt a culture of continuous improvement. Here are some recommendations for individuals and organizations looking to instigate meaningful change:

Establish a Rewards System for Prevention

Create a rewards system that equally acknowledges both the resolution of existing problems and the identification and prevention of potential issues before they arise. As part of regular operating rhythms and meetings, highlight success stories related to prevention, or good corrective actions that prevent recurrence. Share stories and case studies within the organization to provide examples for people to learn from, and more importantly give credit to those who implemented the projects.

Build Comprehensive Training Programs

Training programs should include basic overview training for all employees in the company, and in-depth measures that include application. Here are a couple suggested training topics:

  • Process Mapping and Waste Evaluation – develop training programs for employees at all levels on how to conduct process mapping exercises and evaluate processes for waste, inefficiencies, and opportunities for improvement.
  • Data Analysis and Problem-Solving Technologies – offer training on the latest data analysis tools and technologies that facilitate problem identification and resolution, including visualization tools and artificial intelligence.

Create a Mentoring Program for Projects

Create a mentoring program that pairs less experienced employees with seasoned veterans to foster a culture of learning, sharing, and continuous improvement. If the expertise is not available within your company, hire a consultant to develop key talent internally, then expand. Promote cross-functional teams to work on improvement projects, facilitating knowledge transfer and a broader understanding of the business processes.

Set Ambitious Continuous Improvement Goals

Tell me how you will measure me, and then I will tell you how I will behave. If you measure me in an illogical way, don’t complain about illogical behavior. — Eli Goldratt

It’s amazing when people’s job performance is tied to a metric, actions are taken to meet the goal. Here are a few examples of continuous improvement goals:

  • Cost Reduction – evaluate non-value add cost, such as scrap, rework, redesign, or warranty.
  • Defect Reduction – focus on areas of process rework or physical defects.
  • Cycle Time Improvement – focus on reducing cycle times for key processes and product deliveries, enhancing responsiveness and customer satisfaction.

Leadership Commitment and Involvement

Conduct regular reviews of continuous improvement initiatives, adjusting based on results and feedback to ensure alignment with overall business objectives. Ensure that leadership actively participates in and supports continuous improvement efforts, setting the tone for the entire organization. Educate the leaders on asking questions that prompt investigation and plans to prevent recurrence, as opposed to demanding explanations or expecting action before root cause is understood.

By embracing these strategies, companies can shift their cultures towards valuing and rewarding the crucial work of preventing problems before they occur, thereby laying the foundation for sustained excellence and competitiveness.

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Turning Off Warranty Losses

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Turning Off Warranty Losses

Guest writer Christ Kohart is back this week with a continuation of his topic on warranties with his blog post, “Turning Off Warranty Losses.”

In our last discussion, we reviewed the cost (financial loss to our dealership) of replacing a simple hydraulic tube covered by an OEM standard new equipment warranty. We also discussed the importance of sharing our dealership’s value-add with our customers; that example was a small hypothetical of what a dealer’s service operations extend to support our customer base daily.

How do we properly allocate these write-offs without dumping them into a general cost bucket? Here are two ideas:

Simple Method: We can look at our warranty write-offs for the previous fiscal year and allocate a percentage as a line-item cost to each new whole goods sale during the upcoming fiscal year. While the cost recovery trails the expense by one year and is subject to market fluctuations (good vs. bad years), it is a starting point. In this example, let’s assume that our write-off account shows a net negative balance of $200,000 at the close of our current fiscal year. To fairly allocate this loss to our upcoming fiscal year, we can’t divide our forecast unit sales count by the $200K loss as it will unfairly allocate to lower-cost machines. For this example, we use our forecasted OEM whole goods cost (exclusive of rebates, allowances, freight, etc.) of $10,000,000. If we do some quick and simple math, adding 2% to the cost of each new machine we bring in during the year should net us out with a close to $0 warranty loss. This 2% becomes a line in your build spreadsheet, just like inbound freight, receiving, PDI, standard prep, etc. Beware: the downside to this simple method is that one specific large warranty hit during the year can skew the numbers and hurt your competitive position – you’ll have to carefully gut-check your results.

More Accurate Method:  Consider allocating the warranty costs by OEM, model type, and, potentially, application. Depending on your dealership’s software, this can be relatively easy or complicated. Due to the limitations of the software platform deployed in my old dealership, this was an arduous exercise but well worth it once we began extracting meaningful data. While this will take some time to assemble, once the data model has been created, you should be able to run a routine to update your numbers regularly.

I’m going to limit the sample for our example, but this formula works for almost any size dealership:

  1. Three-year lookback
  2. Two OEMs represented.
  3. Three different model classes (types) spread between the two OEMs.
    1. Class 1 = 15-30 MT hydraulic excavator
    2. Class 4 = 80-150 HP tractor dozer
    3. Class 10 = Medium skid steer loader

High-level steps to make the data meaningful:

Run a detailed report and export it to any solution that can manipulate data, by OEM, of all whole goods sold by model class. You need this information to establish the quantity of each model class.

Run a detailed warranty report and export it using the same criteria. Ensure the report includes all costs and all recovery; this should include any additional policy or extraordinary cost reimbursements received from your OEMs.

Let’s review some of the information in this spreadsheet. We can quickly see what our average warranty loss per machine costs our dealership to support – we’ll discuss the lost profit potential on all those labor hours given away at cost in an upcoming blog. We can also see trends if the average loss varies yearly; in our example, they stayed close. 

We now have data that is accurate by OEM and model class, we’ll discuss adding application as a factor in a future blog. It makes sense that a small skid steer will cost us much less in terms of warranty support than an excavator. This report would also highlight an outlier you would want to adjust manually; using the “simple method,” this would not stand out.

Run this model for your dealership – hopefully, the results are not a surprise when you review them, although they usually are. If you think the numbers are overstated, start with a percentage – even at 50% of the numbers presented above, our sample dealership will add approximately $421,000 to the bottom line in the upcoming fiscal year if you use a three-year average as your basis. While the numbers used have been kept low for this example, I hope they shed some light on the power of accurately tracking these costs. 

Set up at least one revenue GL account (preferably by OEM and model class) to begin recording the offset to your warranty loss account(s).

This is an example of setting up your company to stop writing off warranty losses. If your business system cannot provide this information, many excellent third-party products integrate with most of our industry’s business systems and will ease your journey. The cost of your investment in the project, and perhaps the third-party product, will be returned quickly.

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Aged Work Orders

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Aged Work Orders

Guest writer John Dowling is back this week to cover the topic of timing and timelines in your dealership in “Aged Work Orders.”

How long or how many days should it take to complete a repair on a customer’s machine? How many days does it take for your service department to close out a service work order? I have been asked the ideal number of days or average days to close a work order. The answer to that question is less than what it is now. However, many days it takes your service department to close out a work order, it’s too many! Unless you’re running a perfect service department. If that’s the case, stop reading and forward this to somebody else to read.

An aged work order is a work order over 30 days old. Depending on your location and industry, this number may go up or down, but 30 days is a good rule of thumb. Aged work orders should be a concern at every level of management within a dealership. The dealership that aged work orders are not a concern at every level of management, that dealership will struggle with cash flow, profitability, and customer satisfaction. These are all the symptoms of aged work orders.

How do we address or correct an aged work order problem? One way we should not address it is by criticizing the service manager, making many threats, shouting, screaming, and telling them to fix the problem. That rarely works. Most service and branch managers need a better understanding of the service process. They believe that service managers’ job is to fix equipment, and that’s partially true. It’s a technician’s job to fix equipment. It is the service manager’s job to manage the process of repairing the customers’ equipment—similar roles or jobs but not the same.

We must break down the service process to discover where the bottlenecks and issues are causing our prolonged work order lifecycle. A prolonged lifecycle will lead to an aged work order. How have I broken down the service process? Well, I’ve broken it down into ten steps or stages. In my book Service by the Boxes, I refer to these steps as boxes. We are looking for how many days it takes to move the work order through each step or box.

We need to know how many days it takes from the day the customer drops off his piece of equipment at your dealership to open a work order. If it takes more than 24 hours, that is too long. All work orders should be opened the same day the equipment is dropped off.

Once the work order is opened, how many days does it take to have that work order assigned to a technician and the technician to start the diagnostics process? This must occur within 24 hours to be best in class.

After the technician has diagnosed the equipment and created a parts list, how long does it take your parts department to estimate the parts? Parts estimates should be completed daily.

How many hours does it take for the service department to complete the service estimate and get the customer’s approval? This should occur within 24 hours of the parts estimate being created.

When the estimate has been approved, the required parts should be ordered on the same day. How long does it take your parts department to order approved parts? If it is days or weeks, you have a problem.

Once the parts have been received, do you have an assigned location to stage them for the technician? What is the process of informing the technician or the service manager that their ordered parts have been received? How long does it take? I hope the parts were staged the same day they were received.

This next stage of the work order process usually kills most service departments, especially those struggling with aged work orders. Once the technician receives the parts and completes the repair, how many days, if not weeks, does it take your technician to turn in a completed service report? Technicians should complete and turn in service reports the same day they complete the repair without exception.

Once the service report is turned in to the service manager or office, how long does it take them to process, i.e., close the work order? I have seen service managers hold on to completed work orders until the last week of the month before they even start processing them. Completely asinine. Completed work orders should be closed within 24 hours if not on the same day the service report is turned in. All the work has been done; we need to close the work order. That’s cash just sitting in your service office. 

After the work has been completed and the work order has been closed, how long does it take to collect payment for the repair? This may be the most crucial step in the entire process. It does not matter how efficient your technicians are, how many turns your parts department has, or even if your service manager keeps all his work orders up to date. It is all for not until you collect the money. The transaction is complete once you get paid. 

So, how many days should a work order’s life cycle be? Run a report to find the average age of your work orders. Your work order life cycle should be less than that number. Review the steps we discussed and record how long your service department takes to get from step to step or box to box. Ask why it takes so long and find ways to decrease the time. It is challenging work, but it will pay dividends in cash flow, profitability, and customer satisfaction.

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