AASP-MN News January 2015

www.grecopublishing.com

January 2015

AASP0115.qxp_AASP News 12/30/14 8:52 PM Page 1

AASP News2 January 2015


January 13-14, 201513th Annual Race for Automotive Education

ProKart Indoor Racing, BurnsvilleContact: AASP-MN 612-623-1110 or [email protected]

March 9, 2015Domestic Vehicle Low Speed Bus

Diagnostic StrategiesMarriott Minneapolis Northwest, Brooklyn CenterContact: Automotive Seminars, 920-866-9813 or

[email protected]

March 9, 2015Domestic Vehicle Low Speed Bus

Diagnostic StrategiesDakota County Technical College, Rosemount

Contact: Automotive Seminars, 920-866-9813 or [email protected]

April 15-17, 2015AASP-MN Annual Meeting & Convention

Crowne Plaza Minneapolis West, PlymouthContact: AASP-MN 612-623-1110 or [email protected]

AASP News January 2015 3

CONTENTSVol. 23 No. 1

AASP of Minnesota is an association of independ-ently-owned automotive service businesses and industry suppliers dedicatedto improving the state’s auto-motive service industry andthe success of its members.

AASP News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone:612-623-1110 • Fax: 612-623-1122 email: [email protected] • website: aaspmn.org. All rights reserved. To keep its readers better informed, AASP News allows itscolumnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing,Inc. Cover image, pg. 10, pg. 11 © www.thinkstockphoto.com.

AASP-MN BOARD MEMBERS 2014 - 2015

PRESIDENTJerald Stiele

IMMEDIATE PAST PRESIDENTDan Sjolseth, AAM

SECRETARY-TREASURER Tom Gleason

COLLISION DIVISION DIRECTORJoyce Weinhandl

MECHANICAL DIVISION DIRECTORGreg Kasel, AAM

ASSOCIATE DIVISION DIRECTORKevin Martin

COLLISION SEATMike Cox, AAMJim Siegfried, AAM

MECHANICAL SEATWayne Watson

STAFFEXECUTIVE DIRECTORJudell Anderson, CAE, AAM

OFFICE ADMINISTRATORJodi Pillsbury

MEMBERSHIP COORDINATORTom Kluver

PUBLISHED BY: Thomas Greco Publishing, Inc.

244 Chestnut St., Suite 202 Nutley, NJ 07110PHONE: 973-667-6922 • FAX: 973-235-1963

PUBLISHER: Thomas Greco ([email protected])DIRECTOR OF SALES: Alicia Figurelli ([email protected])MANAGING EDITOR: Jacquelyn Bauman ([email protected])EDITOR: Joel Gausten ([email protected])ART DIRECTOR: Lea Velocci ([email protected])OFFICE MANAGER: Sofia Cabrera ([email protected])

www.grecopublishing.com

EXECUTIVE DIRECTOR’S MESSAGE ......................................................4It’s Baaack...by Judell Anderson, CAE, AAM, AASP-MN Executive Director

LEGISLATIVE UPDATE ......................................................................5Now the Hard Work Beginsby Kevin Walli, AASP-MN Lobbyist

NATIONAL NEWS ............................................................................6

LOCAL NEWS ................................................................................7

FEATURE ......................................................................................9AASP-MN Member Shops Give Back to the Community Year-Roundby Jacquelyn Bauman

PARTNERS IN PREVENTION................................................................11A Low-Salt Diet...For Your Sidewalk

GUEST EDITORIAL ..........................................................................15The Value of Membership by Jeff Quam, Owner, Jaq’s Garage

INSURANCE I.Q. ............................................................................18How the Business Life Cycle Affects Planning Needsby Dennis Begley, CLU ChFC LUTCF CBC

CASH IN ON YOUR MEMBERSHIP!........................................................22Wipers & Wipes, Inc.

ADVERTISERS’ INDEX

aaa Auto Salvage....................................................................21AmeriPride ............................................................................9Axalta Coating Systems ........................................................OBCBuerkle Hyundai ....................................................................10Choice Auto Rentals ..............................................................10Dentsmart ..............................................................................18Inver Grove Honda / Inver Grove Toyota..........................................17Jack McClard ........................................................................17Keystone ................................................................................8Lowell’s PCE ..........................................................................7Maplewood Toyota ................................................................15Meadowbrook Insurance ........................................................11

Mercedes Benz of Maplewood ..............................................14Mills Parts Center ..................................................................16Morrie’s ................................................................................20Motorwerks BMW ..................................................................IBCMotorwerks Mini....................................................................IBCMPA ................................................................................................................12-13PAM’s Auto ............................................................................8Proven Force..........................................................................5Rosedale Chevrolet ................................................................16Roseville Chrysler ..................................................................16Straight & Square ..................................................................14Toyota Group..........................................................................IFC

UPCOMING EVENTS


• Misperception among educators, counselors and the public about the skills and aptitude required to be an automotive technician.• Emphasis on four-year college degrees.• A tsunami of retiring baby boomer technicians and shop owners. • Less interest in automotive careers among young people. • Lack of funding for secondary and post-secondary automotive programs.• Poor industry image.• Entry-level wages that are uncompetitive compared to trades of similar skill levels.

All of this while vehicle technology evolves at an ever-faster pace and con-sumer demand for automotive repair continues to rise. Yikes!

But there is hope. Many organizations and a lot of smart, dedicated, passionatepeople are working in various ways to turn the tide. I’m very pleased to say thatAASP-MN is among those organizations. Here’s what we’re doing:

• Supporting automotive students with scholarships ($15,000 in 2014 alone).• Facilitating a task force, in partnership with the Collision Repair Education Foundation (CREF), representing a cross-section of the industry to work on local initiatives designed to increase the number of capable students in collision programs and ensure the schools have the tools and instructor training necessary to produce well-qualified, entry-level technicians.• Reaching out to high school automotive teachers to offer program support and connect them to local AASP-MN members who want to help.• Educating school counselors about automotive career opportunities. AASP-MN recently submitted an article about automotive careers for the Minnesota School Counselors Association (MSCA) newsletter and has been invited to participate in the MSCA annual conference in May.• Customizing an employee assessment tool that will help members screen job applicants to ensure that they’re a good fit for the shop and effectively manage employees from day one on the job.• Representing the industry on Advisory Committees of technical colleges and high school automotive programs.• Serving on the Executive Board of the Minnesota Transportation Center, a state-funded initiative to fulfill the workforce needs of the transportation industry through partnerships across business, industry and education.

If you’d like to lend your support to any of these initiatives, please contact theAASP-MN office. This issue will not be satisfactorily resolved by one - or several- organizations alone. And it won’t happen overnight. The idea of having a multitudeof qualified applicants for a single job opening may seem like a pipedream. But, ifeach and every person in the industry contributes and does their part to promote theindustry and invest in tomorrow’s workforce, it will happen!

It probably should never have gone away tobegin with. But understandably so, I think the re-cession and subsequent hit that the industry tookas a result played a major role in putting it on theback burner for the past several years. Now the au-tomotive repair industry is on the rebound and itis back, front and center, on many shop owners’minds these days.

What’s it? The availability of (or - more ac-curately - the lack of) an ample supply of educatedand well-qualified technicians and other personnelneeded to carry out the day-to-day operations oftoday’s successful automotive repair business.

The worry is justified, considering the follow-ing issues:


It’s Baaaack...

EXECUTIVE DIRECTOR’S MESSAGE

by Judell Anderson, CAE, AAM, AASP-MN Executive Director

2015 AUTOMOTIVE AFTERMARKET CALENDARS

Catalogs and order formsnow available by contacting

the AASP-MN office at:

(612) 623-1110 or

(800) 852-9071



The AASP-MN committees have reviewed and revised ourproposal to limit the insurance industry’s ability to dictate businesspractices for collision repair shops. We have made minor modifi-cations to our proposal and we have had preliminary discussionswith some of the key legislators who need to be on board in orderfor this measure to pass.

As the 2015 Session begins, we must reach out to all of thelegislators who serve on the House and Senate Commerce Com-mittees. The repair industry needs to make the case that independ-ent businesses should remain independent of controls imposed byother business. Our success depends on making it clear that an in-appropriate imbalance currently exists in the relationship betweeninsurers and repair shops, and this imbalance is likely to becomeworse unless some constraints are established in law.

Over the years, we have enjoyed success at the Capitol makingthe case for main street automotive repair businesses. Even wheninsurance companies have lined up against us, we have fared wellas the local “home town” businesses against the big, “out-of-state”

insurance interests. AASP-MN will be reaching out to legislative leaders and com-

mittee members of both political parties. However, all of our workwill be in the face of strong opposition from the insurance industry.We can expect the Insurance Federation and all of the individualinsurance companies to line up in opposition to our proposal.AASP-MN will need to prepare a witness for what is likely to bean onslaught of opposition from insurance company executives andlobbyists.

Clearly, we have our work cut out for us. Members are encour-aged to let their legislators know that we need their help. Any feed-back you receive from your legislators – whether positive ornegative and whether they are Democrat or Republican – shouldbe reported back to the Association so that we can take it into ac-count as we proceed with our work at the Legislature.

LEGISLATIVE UPDATE

by Kevin Walli,AASP-MN Lobbyist

Now the Hard Work Begins


6 January 2015

NATIONAL NEWS

New OSHA Reporting Requirements Go Into Effect January 1Beginning January 1, 2015, there will be a change to what cov-

ered employers are required to report to the Occupational Safetyand Health Administration (OSHA). Employers will now be re-quired to report all work-related fatalities within eight hours andall in-patient hospitalizations, amputations and losses of an eyewithin 24 hours of finding out about the incident.

Previously, employers were required to report all workplacefatalities when three or more workers were hospitalized in the sameincident.

The updated reporting requirements are not simply paperworkbut have a lifesaving purpose: They will enable employers andworkers to prevent future injuries by identifying and eliminatingthe most serious workplace hazards.

Employers have three options for reporting these severe inci-dents to OSHA. They can call their nearest area office during nor-mal business hours, call the 24-hour OSHA hotline at1-800-321-OSHA (1-800-321-6742) or they can report online atwww.osha.gov/report_online.

For more information and resources, including a new YouTubevideo, visit OSHA’s webpage on the updated reporting require-ments.

GM Delays Implementing List Price Initiative until Early 2015General Motors will continue publishing a list price until it can

address workflow issues raised by the industryGeneral Motors announced it is delaying implementation of

the new OEM part pricing initiative it announced at SEMA in No-vember. GM list pricing was to be eliminated in collision estimatingsystems on December 1 under the program.

According to a statement released by General Motors announc-ing the postponement, the auto manufacturer states:

“GM remains committed to its consumer-focused pricinginitiative, MyPriceLink.com. The strategy is designed to pro-vide a competitive price available when an estimate is beingprepared resulting in the best possible repair for all GM vehi-cle owners. GM has received overwhelming interest and sup-port for its best price forward pricing strategy from allconstituents throughout the collision repair industry. By pro-viding our price up front in the estimating process, we continueto focus on helping our GM customer, allowing the vehicle tobe returned to pre-accident condition, with original parts, en-

suring safety and appearance. “Over the past week, the workflow pressures on outside

parties have brought to light enhanced solutions and the in-creased desire for integration opportunities. These efforts willimprove the process and allow for a longer implementationlead time so the revised workflows can be absorbed to the ben-efit of all of our General Motors customers, dealers and bodyshops. To this end, GM has listened, and has agreed to pauseand extend the implementation of MyPriceLink.com.

“In the interim, GM will resume the publishing of list priceuntil we implement MyPriceLink.com. The extended implemen-tation time frame, allows for all parties to prepare and adjustas needed in order to begin getting GM list prices from theMPL.com price engine. We expect to have a fully functioningdynamic pricing process through MPL in market by early2015.

“GM appreciates the interest and support MPL.com hasreceived and looks forward to collaborating with all con-stituents in the collision repair industry to implement the newway in which GM list prices will be obtained.”

Automakers’ Privacy Principles Fail to Provide Consumer Control of Vehicle Data, Auto Care Association and MEMA SayIn November, the Alliance of Automobile Manufacturers and

the Association of Global Automakers released “Consumer PrivacyProtection Principles,” which are intended to provide car ownerswith a set of principles regarding the sharing of the personal infor-mation available over vehicle telematics systems.

Two aftermarket associations agree that the measures fall shortof what is needed.

While the Auto Care Association said it applauds the car com-panies for taking this initiative to inform consumers of the sizableamount of personal information that is being transmitted to manu-facturers from their customers’ vehicles, the association believesthat the manufacturers are still failing to provide car owners anychoices regarding the information that is available from their vehi-cle.

Currently, car owners are at the mercy of the vehicle manufac-turers as to where information on their vehicle is sent. This includesvehicle diagnostic, mileage and geolocation information. All of thisinformation is sent directly to the manufacturer, and they decidewith which third parties to share that information, the Auto CareAssociation said.

In many cases, car owners have established trusted long-termrelationships with repair shops and other vehicle service entities towhich they would prefer their diagnostic and other personal databe sent, in order to ensure more convenient and efficient servicefor their vehicle. Since these third parties often compete with thefranchised dealer, it is unlikely that the data produced by a carowner’s vehicle will be made available by a manufacturer to an in-dependent service entity.

The Auto Care Association said it strongly urges the vehiclemanufacturers to build into their vehicles a secure gateway, whichwill allow motorists to have information that is transmitted by theirvehicle and sent to the third party of their choice, not the car companies’ choice. Such action will permit car owners to have fullcontrol of the information available from their embedded vehicletelematics systems.

STARTING JANUARY 1, 2015:All employers must report:• All work-related fatalities within eight hours

Within 24 hours, all work-related:• Inpatient hospitalizations• Amputations• Losses of an eye

How to report incident:• Call 1-800-321-OSHA (6742)• Call your nearest OSHA area office, during normal

business hours• Visit www.osha.gov/report_online

continued on pg. 20AASP News


AASP-MN Hits All-Time High Membership Record in 2014

The Alliance of Automotive Service Providers, Minnesota(AASP-MN) reached a record-high membership level in 2014, end-ing the year with over 733 automotive industry businesses on itsroster. The growth is attributed to the Association’s successful ben-efit programs with CBIZ AIA, Meadowbrook, United Fire andAmeriPride, as well as its ongoing commitment to education andtraining, future workforce initiatives and advocacy efforts at thestate and national level.

AASP-MN’s goals for 2015 will focus on increasing recogni-tion and visibility of the Association within the industry, strength-ening program participation among current members andexpanding and enhancing its package of benefits.

Industry Help Sought For 2015 SkillsUSA Competition

The Alliance of Automotive Service Providers, Minnesota(AASP-MN) is facilitating the automotive-related events at the up-coming SkillsUSA Competition on Saturday, April 11. The collisionrepair and automotive service contests will be held at HennepinTechnical College in Brooklyn Park. High school and technical col-lege students from around the state will be on hand to demonstratetheir skills in automotive service and collision repair.

Industry leaders play a vital role in the SkillsUSA program.You can help by doing any of the following:• Providing general guidance and help with automotive-related contests during the event.

• Volunteering to judge the contests.• Encouraging high schools and community colleges in your area to get involved with the SkillsUSA contest.

• Promoting the event within the industry - and community!

The benefits you’ll receive for your involvement include:• The satisfaction of being able to provide assistance and encouragement to the next generation of automotivetechnicians.

• Increased exposure to potential employees for your shop.• An expanded network of personal business contacts.

Please contact Judell Anderson at the AASP-MN office (612-623-1110) if you’re willing to help out. It’s really a lot of fun!

2015 Membership Dues Are Due!Annual membership renewals for AASP-MN were mailed in

December. By now, all AASP-MN members have received at leasttwo membership renewal notices. If you have not paid your 2015membership dues, PLEASE do so today.

Your timely payment will save AASP-MN the additional costand time incurred with re-billing and other collection efforts. We’dmuch rather be working on programs and initiatives to improve theautomotive service industry - and your business. Thank you!

Sponsorships Now AvailableSponsorships are now available for the upcoming AASP-MN

Annual Meeting & Convention, Apri1 15-17, 2015, at the Crowne

Plaza Minneapolis West, Plymouth. The event will feature two daysof management and technical training workshops, as well as socialactivities that allow opportunities to meet and get to know AASP-MN members and other industry professionals.

Sponsors are rewarded by increased visibility and recognitionwithin the AASP-MN membership and industry at-large. It’s a greatway to stand out, expand marketing dollars and connect with thebest shops in the industry.

If you are interested in sponsoring this year’s event, please con-tact the AASP-MN office for more information, or visit the Asso-ciation’s website, www.aaspmn.org.


LOCAL NEWS

Happy New Year From the AASP-MN Board of Directors & Staff!

SAVE THE DATE!AASP-MN Annual Meeting &

ConventionApril 15-17, 2015

Crowne Plaza Minneapolis WestPlymouth, MN

Watch for details as they become available in future issues ofAASP News and online at www.aaspmn.org.




Many AASP-MN member shops recog-nize the value in serving those in the com-munity in a variety of different waysthroughout the year. Throughout the courseof 2014, member shops were active not onlyin the automotive service field, but in theirlocal communities, participating in a varietyof service programs.

As always, it is customary to be espe-cially giving during the holiday season. Anumber of member shops took part in giving-back programs around Christmas,such as Fairway Collision & Automotive,Vadnais Heights, that held a drop off site fortheir local food and toy drive. LaMettry’s inInver Grove Heights donated a fully restored2008 Chevrolet Impala to a newlywed cou-ple, Sean and Nichelle Nagle, who recentlyreturned from their Army National Guarddeployment in Afghanistan - the fourth ve-hicle that they have repaired and donated inthe name of community service. PearsonAuto Body, Shakopee, also teamed up withProgressive Insurance for Food for Kidz, aprogram that packages nutritional meals forhungry children around the world. Thatevent, held on December 6, packaged arecord number 53,352 meals for distribution.

However, the holidays aren’t the onlytime that member shops give back to thecommunity. In June, Automotive PartsHeadquarters, Inc., St. Cloud, held its fourthannual chili cook-off that raised $62,000 forWACOSA, a nonprofit day program foradults with disabilities. In August, SignalGarage, West St. Paul, participated in their11th annual “Free Brakes for Food” pro-gram, where they collect food and schoolsupplies for two local agencies, and in turn,replace the brake pads or shoes for thosewho donate for free. Throughout the year,Crystal Lake Automotive, Inc., Lakeville,accepts nominations for its Crystal LakeCares program, which provides free automo-tive service to a selected candidate who isdown on their luck. Similar to LaMettry’s,in November, Superior Service Center,Eagan, repaired a car donated by ProgressiveInsurance with parts donated by LKQ andNAPA for the Cars for Veterans program.

Remember to take the time this year todo your part for your community.

January 2015 9AASP News

FEATURE

AASP-MN Shops Give Back to the Community Year-Round

L to R: Laurie Kaiser (CMO), Col. Clyborne, Darrell Amberson (President of Operations), recipients Nichelle &Sean Nagle, 1st Sgt Deans, Joanne LaMettry (CEO), J.R. LaMettry (VP), Randy LaMettry (VP).

by Jacquelyn Bauman

Pearson Auto Body (Shakopee) teamed up with Progressive Insurance as the host for the 2014 Food For Kidzevent on December 6. The program packages nutritional meals for hungry children around the world.


10 January 2015 AASP News



Here are a few tips that will keep yourparking lot and sidewalks clear, but keep yoursalt use to a minimum.

Check your sidewalks and parking lot forundissolved salt crystals on dry pavement.That means too much salt was used. Sweep itup, reuse it, and use less next time.

What does the right amount of salt looklike? Aim for evenly spread salt crystals thatare less than three inches apart but not touchingeach other. No piles. Handheld salt spreaderswork great to spread salt evenly, and you’ll useabout half as much salt as you would with ascoop. You can pick up a handheld saltspreader at the hardware store for about $15.

Don’t spread salt when it is very cold out.Salt won’t do anything until it dissolves andforms a brine. Most salt won’t dissolve if thetemperature is below 15 degrees Fahrenheit. Ifit is too cold for salt to melt ice, use ‘turkeygrit’ for traction on ice.

If it’s warm enough out, sprinkle just a lit-tle salt on sidewalks and stairs when it starts tosnow. The salt will melt a little of the snow, andthe salt will dissolve in the melted snow to cre-ate a brine. The brine prevents the snow fromfreezing to surfaces, the same way a little lu-bricant keeps parts from sticking together.Snow or ice that builds up will be easier to‘pop’ free from the pavement with a shovellater.

Use a broom, shovel, snow blower orplow to remove as much snow as possible.There will be less melted snow to refreeze intoice and you won’t dilute the salt you use. Re-move snow quickly to prevent compaction. It’sfrequently sunny the day after we get a snow-fall. If you’ve removed most of the snow, thesun will clear the rest, even if it’s very cold.

For a stubborn icy spot, sprinkle it withjust enough salt to perforate the ice. Give thesalt time to do its work then scrape the iceloose with a shovel.

Why should you think about how muchsalt you use? Salt pollutes. When snow and icemelt the salt goes with it, washing into thenearest lake or river. Even small amounts ofsalt can harm fish and plants. High amountscan kill them. It takes only one teaspoon of saltto permanently pollute five gallons of water.

The MPCA offers training classes forwinter maintenance. If you hire a service totake care of your sidewalks and parking lots inthe winter, consider using one that has takenone of these classes. If you do your own wintermaintenance, consider attending the free

training yourself. Many companies that havetaken the training have reduced their salt useby 30 to 50 percent. That’s a substantialamount of cost savings if you have a lot ofsidewalk or a large parking lot.

Make efforts to reduce the amount of saltyou use and use it more effectively. Keep yoursidewalks clear and keep the water clean.

You can take these tips home, too!For more tips, short videos, and training

information, visit the MCPA’s winter mainte-nance webpage at www.pca.state.mn.us/r0pgb86.

PARTNERS IN PREVENTION

A Low-Salt Diet...For Your SidewalksWHEN IT COMES TO DEALING WITH ICE AND SNOW, EVERYONE HAS A FEW TRICKS UP THEIRSLEEVE.









GUEST EDITORIAL

by Jeff Quam, Owner, Jaq’s Garage, Moorhead, MN

The Value of

MembershipJust before Thanksgiving, I received a call from a close rela-

tive. She lives in the Twin Cities and was having a problem withher ignition lock and tumbler. She could not turn the ignition keyand had called me seeking advice. She was at a tire shop, but itwas questionable as to whether they could squeeze her into theiralready-tight schedule.

Not being familiar with Fords, I hinted that getting it to a deal-ership might be the safest and quickest option. However, on furtherthought, I called the AASP-MN office (it was late on a Friday af-ternoon) and Judell answered. I told her the story and she emphat-ically told me, “We are not sending that car to a non-memberdealer!” She quickly gave me the number of a couple of AASP-MN members in the area where the car was.

Both of the members were familiar names to me, so I justcalled the first one – St. Paul Automotive. I talked to Scott, andeven though it was about 5pm, he was calm and reassuring. Afterhearing the story, he thoughtfully referred me to a locksmith whohe uses from time to time. He pointed out that they are mobile andusually can come right to the car, saving a tow charge.

I called the locksmith. Turns out he was too busy, but he - inturn - gave me two other phone numbers. Finally, I found someonewho could do the lock and tumbler. The story ends there, becausethe original tire shop was able to get to the job in a timely manner,but here’s the point:

What impressed me was the courteous, professional mannerthat I was met with at every turn. It reminds me that I am a memberof an elite group of professionals who - on a daily basis - inform,guide and help their customers find the right solution to a problem.It may be a referral, or just some empathy or assurance, but, ulti-mately, we fix the vehicle for the customer.

I have always considered AASP-MN membership to be oneof the best things that I’ve ever done for my business and this ex-perience is just another reason why. I made a point to familiarizemyself with the AASP-MN website a little more so next time I willuse it to search for a member instead of calling the office. But,“kudos!” to Judell, AASP-MN and St. Paul Automotive. Theymade my day.






AASP News

Chances are, you were not doing estate planning at age 20. That need just didn’t exist or wasn’t a priority at that time in your life.The same logic applies to your business planning. Where your business is in its “life cycle” has a great impact on when you shouldaddress the various needs of your business, the owner(s) and key employees.

Here are the common stages that most businesses go through with corresponding planning needs. You can identify which stage yourbusiness is in by looking at the company traits below. Then, take a look at the planning needs worthy of your consideration right now, aswell as down the road.

INSURANCE I.Q.

How the Business Life Cycle

Affects Planning Needs

• Trying to become established in the market• Putting profits back into the company• Generally have substantial debt• Revenue generally less than $500,000/year

• Life insurance to cover debt/buildings• Key person (life and disability) insurance on owner(s)• Buy-sell agreement implementation and funding• Exploration of a group benefits package for owner(s)/key employees

• Individual life and disability insurance

• Potentially still establishing business in the market• Expenses and reinvestment in the company may remain substantial• Need for debt financing may be decreasing• Revenue stream is growing

• Key person (life & disability) insurance on owner(s) andkey employee(s) • Buy-sell agreement and funding review• Informal business valuation• Finance buy-sell agreement for death/disability/voluntary exit

Company Traits Planning Needs and SolutionsNEW BUSINESSES (1-3 Years in Business)

GROWING BUSINESSES (3+ Years in Business)Company Traits Planning Needs and Solutions

18 January 2015

by Dennis Begley, CLU ChFC LUTCF CBC


Company Traits Planning Needs and Solutions

Company Traits Planning Needs and Solutions


• Established in the market• Established management team• Consistent cash flow• Business continuity plan in place• Consistent revenue• Established client base and relationship management

• Updated informal business valuation to address changing needs:- Financing for death/disability/voluntary exit from business- Consider a buy-sell agreement review to determine if funding is adequate

• Key person (life and disability) insurance on any new owner(s) and/or key employee(s) • Overhead expense disability insurance• Expanded group benefits package• Key person retention plan • Solid transfer strategy• Business owner retirement planning• Estate planning if family is in the business (if business value exceeds $5 million)• Inheritance equalization planning

• Established in the market• Strong management team in place• Consistent cash flow; looking to retain cash flow in owner’s absence• Established client base and relationship management

• Transition planning (paramount)• Key person (life and disability) insurance on new owner(s) and/or key employee(s).• Overhead expense disability insurance (for new ownership)• Continued expansion of group benefits package• Key person retention plan review and addition of any new members• Utilization of business value for owner retirement needs• Survivor benefits/income• Estate planning if family is in the business (if business value exceeds $5 million)• Inheritance equalization planning

It’s important to be mindful of the planning needs that maycome up at various stages in the cycle of your own business. Plan-ning and implementing solutions before issues arise will protect notonly you and your family, but the livelihood of your valued em-

ployees as well. To discuss any of the planning concepts listed in this article,

please contact me at [email protected] or 763-549-2260.

ESTABLISHED BUSINESSES (10+ Years in Business)

TRANSITIONING BUSINESSES

• Client base is building; relationship management and key person retention needs may be more significant

• Overhead expense disability insurance• Implement a group benefits package using a combination of employer-paid and employee-paid life, short-term disability, long-term disability, dental or vision insurance

GROWING BUSINESSES (Continued)Company Traits Planning Needs and Solutions


continued from pg. 6

NATIONAL NEWS

The Motor & Equipment Manufacturers Asso-ciation (MEMA) said it views the automaker’s prin-ciples as a positive first-step in providing greatertransparency, privacy and the option for motoriststo “opt-out” of sharing non-essential vehicle systemdata. “MEMA believes there is still much work tobe done to ensure motorists continue to have thefreedom of choice where their connected vehicle isserviced as well as the freedom of choice to sendvehicle data directly to independent serviceproviders, in both the light duty and heavy duty ve-hicle sectors,” said Steve Handschuh, president andchief executive officer of MEMA.

I-CAR Reparability Technical Support PortalConnects Industry Pros to OEMs

I-CAR is continuing to promote the launch ofits Reparability Technical Support (RTS) Portal, acollection of resources to help provide repair indus-try members with valuable information, technicalsupport and repair solutions. The portal offers real-time OEM information and announcements, colli-sion repair articles, and technical questions andanswers.

Stemming from an initial request from AASPNational, the Automotive Service Association(ASA) and the Society of Collision Repair Special-ists (SCRS) to establish an entity to address and rec-tify gaps in OEM repair procedures and processes,the RTS Portal aims to provide a one-stop resourceof collision repair information and knowledge.Jason Bartanen, director of Industry Technical Re-lations for I-CAR, says that the RTS Portal has beencompiled to help foster greater understanding to allmembers of a rapidly evolving industry.

“We’re just trying to make sure that all the in-formation is out there to help facilitate complete,safe, quality repairs,” says Bartanen. “A lot of thisinformation has been available for a number ofyears, but we’ve brought everything over to theRTS portal so that it’s all in one spot and easily nav-igable. We’ve updated and refreshed some of the in-formation with new photos and a revamped look aswell.”

Nearly every vehicle manufacturer selling ve-hicles in America is represented in the “OEM In-formation” section of the RTS Portal, whichcontains links to manufacturer-specific repair web-sites, position statements, body repair manualguides, news and available training opportunities.

Repairers will also find repair solutionsthrough the Portal’s “Ask I-CAR” feature, whichallows the user to search by make, model and yearto search for repair questions and answers on a par-ticular vehicle.



“If the visitors can’t find an answer tothe question they have, they can either sub-mit an inquiry online with the click of a but-ton, or they can call our full-time, on-stafftechnical experts,” says Bartanen. “In-quiries are forwarded directly to the staff,and if our experts are unable to answer thecall, we have a policy of getting back to thecaller in a two-hour window. We may notalways have an answer in that time frame,but we will always get back to them with anupdate.”

Additional features on the portal in-clude collision repair news updated as pub-lished industry-wide with updatesannounced via Twitter (@Tech_Briefs), anairbag replacement and partial part replace-ment search and Uniform Procedures forCollision Repair (UPCR). I-CAR is also inthe process of adding a hybrid search matrixfor additional information and resources onhybrid vehicle disablement to protect colli-sion industry professionals working on andaround these vehicles.

“Our OEM link pin activity creates aninteractive method of sharing information,”says Bartanen. “If someone has a questionwe can’t find an answer to, we can reach outto the manufacturer and then post that re-sulting information online. Additionally, aswe get feedback from our repairers, we canapproach the manufacturers and ask them toapproach new ideas.”

The portal has also facilitated the cre-ation of reparability summits and industrysegment advisory councils (ISACs), whichhave representation and active participationfrom manufacturers on a variety of subjects.

“We’re getting feedback from the in-dustry on what gaps need to be closed; it’sa great concept, and we’ve found it to beworking really, really well. We’re reallybusy, and we’ve got a great team in place.We’re excited to see what the future holdsand how we can continue to collaborate toget the best information out there to the in-dustry.”

NHTSA Launches Online VIN-Based Recall Search Tool as Vehicle

Recalls SkyrocketAgainst a backdrop of increasing auto-

motive recalls the National Highway TrafficSafety Administration (NHTSA) has gonelive with its online VIN-based recall searchtool at www.SaferCar.gov/vinlookup.

Under a recent NHTSA mandate, all

major light vehicle and motorcycle manu-facturers are required to provide VIN searchcapability for uncompleted recalls on theirown websites, with the data updatedweekly. NHTSA’s new VIN look-up tool re-lies on this information from those sites.

“Safety is our highest priority, and aninformed consumer is one of our strongestallies in ensuring recalled vehicles are re-paired,” said U.S. Transportation SecretaryAnthony Foxx when the service was an-nounced in August. “Starting today, carowners, shoppers and renters can find out ifa specific vehicle has a safety defect that

needs to be fixed – using our free onlinetool.”

There are some limitations to the data-base. According to a NHTSA spokesperson,the tool does not provide look-ups for allcars. “Only vehicle manufacturers that pro-duce 25,000 or more light vehicles annuallyand manufacturers that produce 5,000 ormore motorcycles annually are required tosupport the tool, although any vehicle man-ufacturer may choose to participate,” thespokesperson said. A list of current partici-pants is on the site.




CASH IN ON YOUR MEMBERSHIP!

WORKERS’ COMP INSURANCEMeadowbrook Insurance GroupContact: Dennis Spindler763-549-2238 / [email protected] scheduled credit makes Meadowbrook one ofthe most competitive programs around for Worker‘sCompensation insurance. In addition, members areeligible to receive an annual dividend based on thegroup’s loss ratio. For more information, log on towww.wcpolicy.com/aaspmn.

PROPERTY/LIABILITY INSURANCECBIZ AIAContact: Dennis Spindler763-549-2238 / [email protected] AIA will present AASP-MN members with quotesfrom multiple carriers for property/liability insurance andmembers can choose the program that best fits their situa-tion. As an added bonus, CBIZ AIA will offer members anexclusive 10% discount on their property/liability insur-ance premiums.

EMPLOYEE BENEFITSCBIZ AIAContact: Dennis Begley763-549-2260CBIZ AIA will provide AASP-MN member with quotesfrom multiple carriers for life insurance, health insur-ance, long-term care and disability insurance.

UNIFORM & LINEN SUPPLIESAmeriPride ServicesContact: Jim Dillon651-955-1398 • Fax: 952-738-3318 [email protected] pricing to members on rental of uniforms,entrance mats, shop rags, etc. Purchases are also dis-counted. Members receive annual rebate equal to10% of their business with AmeriPride each year.

CREDIT CARD PROCESSINGAssociation BankCard ServicesContact: Mac Hardin952-933-2026 • Fax: 952-933-4595 [email protected] rates for AASP-MN members. Terminalsand printers sold at cost. Monthly rental of equipmentis also available.

INDUSTRIAL & PAPER PRODUCTSWipers & Wipes, Inc.Contact: Dennis JulsonPhone: 651-486-4866 Fax: 651-486-4859 Discounts on industrial supplies and paper products.Free, next-day delivery is available in the metro area.Shipping free to outstate members with $100 pur-chase.

WEBSITE AND INTERNET MARKETING SOLUTIONSNet DrivenContact: Jon Napoli218-623-7351 / 218-310-7285Net Driven is a market leader in website and internetmarketing solutions designed exclusively for the auto-motive industry. Net Driven assists independent tireand automotive industry dealers who are looking toincrease revenue by selling more tires, service, andwheels. AASP-MN members who choose Net Drivenare eligible for a $500 discount off their 1st year setupfees. For more information, contact Jon Napoli.

StormlogixContact: Paul Switzer732-364-1156 / [email protected] extends a discount on its website pack-ages to AASP members. Costs can be spread outover 6 months.

TECHNICAL INFORMATION HOTLINEIDENTIFIXPhone: 800-288-6220 Fax: 651-633-2188Members enjoy discounted prices on the industry’s #1technical information hotline. One free call is extendedto all first-time AASP-MN member callers.

BUSINESS FORMS/CALENDARSAASP-MNContact: Jodi PillsburyPhone: 612-623-1110 or toll free 800-852-9071 Fax: 612-623-1122 / [email protected] rate on printed business forms and calendars.

SHOP SERVICESSummit Software & Mobile SolutionsContact: Frank Terlep 888-377-2661 /[email protected]. Website: www.emarketingsherpas.comAASP members receive a $50 discount on their an-nual e-Marketplace subscription, a digital marketingsystem that includes mobile phone apps and a com-plete customer service, sales, marketing, advertisingand communication platform.

INFORMATION PROVIDERSMitchell1Contact: Mitchell1 RepresentativePhone: 888-724-6742 x 6986AASP members are eligible for special Mitchell 1 in-formation and management programs at significantdiscounts. For more information, log ontowww.mitchell1.com or contact the Mitchell 1 representa-tive at 888-724-6742, X6986.

Mitchell International Contact: Mitchell International Representative Phone: 800-238-9111AASP members receive a 15% discount on anyMitchell RepairCenter TechAdvisor package. Visithttp://repaircenter.mitchell.com/Catalog/OEMRepair.aspx for more information.

PAYROLL PROCESSINGCBIZ PayrollContact: Bob Willbanks612-298-1176 / [email protected] receive 20% discount off standard payrollproducts and services (excluding 401k). Memberswho switch prior to June 30 will receive first month ofpayroll processing free.

CHECK GUARANTEE SERVICESCertegy Check ServicesContact: Heather Ellis952-240-5017 / [email protected] rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.

BUSINESS COACHING180BIZ540-833-2014 / [email protected]: www.180biz.com180BIZ offers BUSINESS COACHING to AASP membersat a steep 20% discount! One Eighty Business SolutionsLLC (180BIZ) has been helping shop owners increaseprofits and car count while decreasing stress since 2003.AASP members receive a discount on very affordable one-on-one coaching plans without long-term commitmentsand complicated contracts. 180BIZ offiers a risk-free trialof their services. To learn more, please call or email us, orvisit our website.

REPLACEMENT PARTSDorman ProductsPhone: 800-868-5777, ext. 5329Website: www.dormanproducts.comAASP members receive insider information, specialaccess and other perks from Dorman Products, aleading supplier of dealer “exclusive” automotive re-placement parts.

LEGAL CONSULTATIONFryberger, Buchanan, Smith & FrederickPhone: 800-496-6789 Fax: 218-725-6800Members receive free, over-the-phone legal assess-ment and consultation (some restrictions apply) withan attorney who specializes in the area of law that isthe subject of the call.

AASP-MN MEMBER BENEFIT PROGRAMS

Wipers & Wipes, Inc.AASP-MN and Wipers & Wipes, Inc. are partnered to

provide members with special pricing on items used in theshop every day.

Wipers & Wipes, Inc. specializes in disposable towel-ing for the automotive service industry. With a modern,highly efficient warehouse, Wipers & Wipes, Inc. is able tostock a large and diverse inventory to quickly meet theneeds of its customers. Wipers & Wipes, Inc. provides next-day service with free delivery in the seven-county metroarea and some surrounding cities. Daily shipping via UPSand Spee-Dee Service for outlying areas is also available. A$100 order qualifies for free freight.

“We give fantastic service and sell quality products,”says the company’s owner, Dennis Julson. Julson, alongwith his modest crew at Wipers & Wipes, Inc., can serviceyou with a variety of items, including:

• Paper toweling & dispensers• Mopping & floor maintenance equipment• Skin soaps & lotions• First aid products & equipment• Food service equipment• Cleaning chemicals, floor pads, sponges & abrasives• Waste receptacles & can liners• Facility maintenance & cleaning tools & supplies

For more information about this AASP-MN MemberBenefit program, contact Wipers & Wipes, Inc. at (651)486-4866.





Documents

AASP-MN News January 2015