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INDUSTRYThe Used Truck Association
Volume 22 • Issue 5 • May 2020
1.877.GETS.UTA • WWW.UTA.ORG
WATCHChartered May 16, 1988
2 Board and Committees
2 Quips & Quotes
3 Board News & Views
4 Face to Face with Robyn Penland: Part 2
5 The 2020 Board of Directors and LTA Nominations: UTA Strong!
6 An Update for UTA’s Members
7 Industry Events Calendar
7 UTA Events Calendar
8 Welcome New Members
8 In Memoriam: Don Tatum (1936-2020)
9 Doug’s Morning Coffee: The 80/20 Rule
10 Convention Committee Update
11 UTA and Commercial Truck Trader’s Virtual Marketing Webinar
12 Women In Trucking: #SteeringTowardKindness
13 Book Excerpt: The Leader You Want to Be, Part 1
14 How Truck Dealers Can Meet Today’s Challenges
16 J.D. Power Valuation Services Update
18 Industry News Briefs
20 Brooks Tip of the Month
21 Photos from the 2019 Convention
22 From Where We Sit
Contents
Sales Strategies to Use During COVID-19by George Papp, George Papp Training and Consulting
Most of us have never faced a pandemic of this magnitude and hopefully we won’t again.
I must come clean and say upfront that what you are about to read is based on gut instinct and common sense. I hope it helps you stay focused and in the game.
My instincts tell me that now’s the time to focus on customer retention. I usually preach Prospecting, Prospecting, and more Prospecting but I think for the next few months you should shift your focus to your existing customers. Your goal is not to sell but to show support using a consultative approach. Remind them that your parts and service departments are working hard to keep customer trucks on the road. If it's a local customer, ask them if you can be of help to them, for example by delivering parts or helping with tech support. Your customers will appreciate support in this time of need.
If you have an opportunity to make a presentation you will need to get creative. COVID-19 is forcing businesses to cut back on travel and in-person meetings. That means web-based presentations are more important than ever. Start repackaging your sales presentation into a full-blown virtual pre-sentation. Sharpen your PowerPoint skills and walk/write yourself through your sales process. You will be surprised what a good learning experience this will be for you. You may even uncover some flaws that will allow you to tweak your selling process.
Be ready to get creative and keep your sales advancing by doing things that you are not accustomed to. Such as:
» Taking your client on a virtual floor tour of your dealership (using FaceTime or mobile conferencing apps)
» Doing an in-depth product walk-around tour
» Sending your client a YouTube video of your product or solution in action, and then talking through it via web conference while watching the video together
Think creatively and think out of the box. Don’t worry if you can’t be there in real life. Your virtual tours will get the job done.
Continued on page 8
SHARE YOUR NEWS with the UTA Industry Watch.Send submissions, ideas and comments to:UTA Industry Watch Editors Brad and Deb Scheppc/o Sentry Management 303 Corporate Center Drive, Suite 300 AStockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)Fax: [email protected]
Twitter: @usedtruckassocFacebook: Used Truck Association
Management: Misty Reis, [email protected]
Art Direction/Graphic Design: Laura Carter, [email protected]
Craig Kendall PresidentAmy Shahan Vice PresidentTerry Williams Secretary Brandon Hess Treasurer Willie BoyleJay BurgessHal Dickson Joe Feco Michelle OberTim RonanMike RoneyDoug ShieldsJody Johnson Rocky Carden — Alternate
Executive Advisors Charles CatheyMarty CrawfordDean JeskeRonnie JordanRobert Yost
OEM Advisors Brock FrederickJeremi GuditisBo Johnson
2020 USED TRUCK ASSOCIATIONBOARD OF DIRECTORS & COMMITTEESwww.uta.org/directory
Convention Committee Chair – Terry Williams Co-Chair – Hal Dickson Brock Frederick
Dealer Group & Preferred Partners Chair – Jay Burgess Co-Chair – Willie Boyle Co-Chair – Rocky Carden Amy Shahan Bobby Williams
Elections Committee Chair – Doug Shields Co-Chair – Charles Cathey
Finance Committee Chair – Brandon Hess Marty Crawford Ronnie Jordan Craig Kendall
Marketing & Website Committee Chair – Craig Kendall Co-Chair – Terry Williams Hal Dickson Doug Shields
Membership Committee Chair – Mike Roney Co-Chair – Michelle Ober Joe Feco
Scholarship Committee Chair – Dean Jeske Co-Chair – Tim Ronan Rocky Carden
Training Committee Chair – Amy Shahan Co-Chair – Jody Johnson
Young Members Committee Chair – Victoria Lombardo
“Do you want to know who you are? Don't ask. Act! Action will delineate and define you.”
- Thomas Jefferson
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Mike Roney Membership Committee Chair
Commercial Truck Drivers— Our Industry’s First Responders
As the Global Pandemic continues to spread it is vital for all of us to learn what we truly value in the world to weather this horrific storm. This pandemic will eventually subside. But it
is bittersweet and historically true, that when an individual or community (and in this case all of humanity) has so much taken away, then the clarity of what is most important comes into focus. We come to appreciate one another and the precious time we have to spend together. With that clarity we can begin to fight for one another.
The selfless acts of first responders laboring to help others despite the dangers to themselves is the first and brightest indicator that humanity will prevail. Knowledge is power and sometimes we need to be hit with knowledge like a brick. Only then can we really see those men and women around us who do these jobs every day and how incredibly important they are to us all.
I have heard it said many times in this business: “Everything, I mean everything that we have has made its way on a truck at some point.” It takes a very special person to haul freight across our country. It is not a job for the weak of heart. To work as a commercial Truck Driver shows a work ethic that rivals most. The courage to jump into traffic with 80,000 lbs. of much-needed supplies while navigating people texting in cars while turning into the truck’s lane is amazing.
I am by no means taking away from the heroism of our Police Forces, Fire Fighters, military, or Health Care Professionals. But let’s not overlook those people in the seat of commercial vehicles as an important part of our lifesaving equation. It is much easier for those in the trucking busi-
ness to see that without a driver behind the wheel of a commercial vehicle our econo-my really would shut down. However, outside our industry most consumers under
normal conditions are oblivious as to how food, water, medicine, clothes, fuel, building supplies, tech equipment and devices, medical equipment, or anything else gets from A to B. That is, until that consumer goes to their local supermarket to find those things are no longer on the shelves.
When the shelter-in-place policies started nationwide, and businesses were asked to close unless they were deemed “essential,” no one really thought about how that would affect the supply chain. With highway rest stops, restaurants, hotels, truck stops and some fuel stations closing their doors or limiting their hours Commercial Drivers were cut off from what they needed to make it from A to B. This became newsworthy because it started to affect us all. OOIDA’s President and CEO Todd Spencer said it best: “Truckers are risking their lives to deliver critical supplies.” The media agreed. Consider the title of a recent USA TODAY article: Truckers brave coronavirus outbreak to deliver goods. “If we stop, the world stops.”
These news stories have given our commercial truck drivers some much-needed positive press. People are putting faces to names as to who they are and what they do. That spotlight is starting to win the commercial truck driver some cheers and with it some big support.
In a recent Land Line article, author Mark Schremmer said that the FHWA (Federal Highway Administration) is stepping in to help with what had become a big challenge—drivers getting access to food. “The FHWA issued…a notice to state departments of transportation that the agency was ‘suspending enforcement’ under the federal-aid highway program for states that choose to permit commercial food trucks to operate and sell food, in accordance with state laws, in designated federally funded interstate highway rest areas.”
As more people are learning about what commercial truck drivers do and how they are often taken for granted, there has been growing support from people everywhere. From small town families donating food to drivers on their way through town, to people offering places to stay because the driver has completed his 10 hours but is without the usual rest stops, a new-found appreciation for commercial drivers is evolving. Many would agree that this is justifiable and long overdue.
Being part of the trucking industry and working directly with those men and women behind the wheel of commercial trucks, I understand what an important and difficult job they have distrib-uting our country’s products where they are needed, especially during this pandemic. I ask all UTA members to help people outside our industry continue to understand and appreciate the people behind the wheel. And to our industry’s first responders, Thank You. n
3
Last month we shared the story of Robyn’s seven-year
career in trucking and her shift to a sales position just three years ago. Robyn, as you recall, is in pre-owned sales with Bruckner
Truck Sales in Fort Worth, TX. This month, we’ll share with you details of how she’s been able to enjoy great success within a traditionally male-dominated industry and market. Much of what she shares will apply to anyone who is looking to find success in truck sales, and much of it will seem familiar to anyone trying to carve any new career path.
“I have taken a leap into a male-dominat-ed industry, and it has been the most
fulfilling position I have ever held,” she said. “I remember when I first started in this position and the fear I had of not being able to keep up with the guys or earn the respect that is needed in this role—not only from coworkers but from customers as well.” Robyn attributes her success partly to her friendly competitive nature. “I have just as many advantages in this role as I have disadvantages,” she explained. “I believe some advan-tages I have include my customer service and multitasking skills. A disadvantage is getting a buyer comfortable enough to purchase from a woman.” Robyn gained the skills she has when she started in truck sales while working as an
Assistant Manager for an apart-ment complex that required managing logistics and customer care, too. And as for her stated disadvantage, she addressed that as one would no matter what challenge is ahead.
“The way I look at my disadvan-tages in the industry is to make those the reasons I will work harder and put in more effort,” Robyn said. When she first joined the industry, she felt the need to prove herself worthy of the opportunity she’d been given. “I jumped headfirst into getting my Class A CDL.” When it comes to work, Robyn does what she needs to do to get the job done. Although customer service comes second nature to her, she continues to devote herself to learning about the industry. It’s part of her drive to provide excellent customer service. “I continue to use every opportunity as a learning experi-ence,” she said. “Having the knowledge and being familiar with what I am selling before customers begin to ask questions, helps them to feel more confident in purchas-ing equipment from a woman.”
Robyn is quick to credit the Bruckner truck staff with the success she’s had since joining the industry. “Without them taking a chance on giving me the opportunity to prove myself in these positions, I would not be in the position I am now,” she said. “They have all helped mentor and guide me in the right direction. My team views my success as their own and that feels like an honor.” Robyn is proud of using that opportunity to achieve the highest sales within her company
WITH
Robyn Penland PART 2
for several months. “This was a huge accomplishment to not only be a successful female salesper-son, but to rank among the top in sales,” she recalled.
Although she is generous in her gratitude for the support and experience she’s gained through-out her sales career, she still takes great pride in the relationships she can create with her customers and the referrals they bring to her as a result of their great experi-ences. In just the short time her career has taken her into sales, she’s learned some valuable lessons. “Opinions are only as good as the facts standing behind them,” Robyn explained. “Throughout the trucking indus-try, you will find many opinions being thrown around as facts. You must put the research into the opinions you are going to person-ally develop.” She used the rapid changes in technology and equipment as an example. “Being up to date on past and new equipment will put you in a better position when facing roadblocks with customers,” she said.
Despite the challenges she faced in joining a male-dominated industry, Robyn’s experience certainly does transcend any industry or any other type of sales. “Do your work diligently. Never stop learning and bettering yourself. Show respect and gratitude for those who help you along your path. And, always do your best to provide your custom-ers with extraordinary customer service.” That’s great advice for finding success in nearly any of life’s endeavors, and we thank Robyn for sharing it! n
4
Doug ShieldsElections Committee Chair
2020
The 2020 Board of Directors and LTA Nominations:
UTA STRONG!It is more important than ever, that we elect a Board of Directors that represents the members
and is in touch with the entire membership’s needs.
This is exactly why you should nominate and elect leaders that you feel will best represent you and make wise decisions for your association.
Whether you’re a small “mom and pop” dealership, a one-man (or woman) wholesale concern, or a multi-brand, multi-store national company, we need to hear your voice now more than ever before.
The Board of Directors needs bright, energetic, and most of all, committed people from our membership ranks, to represent us and lead the Used Truck Association through these challeng-ing times.
Each member of the Board of Directors serves a term of three years and officers of the board are elected for one-year terms of duty by the Board of Directors.
Nominations will go out soon (if they haven’t already) so please consider carefully that special person in your circle of influence to nominate and represent you in your UTA Board of Directors.
The Marvin F. Gordon Lifetime Achievement Award
This award, the Marvin F. Gordon Lifetime Achievement Award, is the highest honor that can be bestowed upon any member of the UTA. It is reserved for those special people who have contributed significantly to our membership and industry.
Your nominee should demonstrate the highest caliber of honesty, integrity, and a general willingness to give of themselves to others as outlined in the UTA’s Code of Ethics.
This is your opportunity to give these great men and women the recognition they so richly deserve. Please nominate your choice for the Marvin F. Gordon Lifetime Achievement Award and help us recognize them for their amazing contributions to our association and our industry.
Be safe. Be strong. Believe. We Are UTA Strong! n
Any UTA member in good standing may nominate any other UTA member in good
standing, or themselves, as long as the nominee meets the following criteria:
» Have experience in the used truck industry
» Demonstrate a history of ethical and professional business practices
» Be willing to advance the goals and objectives promoted by the UTA
Please complete the PDF form and email to
Misty Reis — [email protected]
and Doug Shields, Election Committee Chair — [email protected]
Completed form must be received by Friday, June 12, 2020
Printed Name of Nominating Member ______________________________________________________________________________________________
Signature of Nominating Member ________________________________________________________________ Date_____________________________
Board of Directors
Official Nomination Form
Nomination Information
Career History
Years of Experience in the Used Truck Industry: __________
Brief description of Employment History
Used Truck Career: (brief description of how the nominee got into the used truck business, and became associated with his/her current business)
___________________________________________________________________________________________
Nominee Name
Nominee Title
____________________________________________________________________________________________
Dealership/Business Name
____________________________________________________________________________________________
Address
City
State Zip Code
____________________________________________________________________________________________
Telephone
Fax Number
Email Address
Sales Strategies to Use During COVID-19 continued from page 1
It’s impossible for me to close without men-tioning Prospecting even though I said your focus should be on existing customers. If you are now working a few highly qualified prospects or target accounts, please stay in touch with them. Going off the radar is the worst thing you can do during the outbreak. Given the intensity of the situation, your prospects are not likely to remember you
when everything is over. Approach them the same way you are approaching your existing customers. Be thoughtful, be creative, and share your new virtual floor tour and product walk-around videos with them.
Deals may get stalled in your pipeline. But make sure you keep them warm. And keep checking in with your leads. Some companies
may hold back on investments until the uncertainty resolves. But look for the first sign that the crisis is ending. You should make up for some temporary losses very quickly.
Good Selling. n
5
Craig Kendall UTA President [email protected]
An Update for UTA’s Members I hope you, your family, and your business are in good shape and are doing well.
The COVID-19 pandemic has affected all of us and has impacted the entire world. The good news is some of the hardest hit areas appear to have fewer new cases, and fewer new serious cases. Unfortunately, some people have lost their lives and many people remain ill.
These are challenging times, which have required the Used Truck Association to take some unprecedented steps:
» The 2020 Scholarship Reception and Golf Tournament scheduled for June 24–25, 2020 will be postponed until 2021.
» The UTA Management Training Class scheduled for June 24 in conjunction with the UTA Scholarship events in Kansas City will be rescheduled.
» The UTA Sales Training Class scheduled for July 21-22 in Chicago will likely be rescheduled.
» The UTA Dealer Group Fishing Trip, scheduled for April, has been postponed until September 29-30. Please see the article entitled UTA Events Calendar (on the next page) for further details.
» The UTA Board of Directors made these moves in the interest of safety and sound practices.
In January, the Board of Directors decided to award six $7,000 scholarships in 2020. The Schol-arship Committee is looking at additional ways to raise money for the UTA Scholarship Fund. If you have ideas or wish to contribute to the Scholarship Fund, contact:
» Dean Jeske, UTA Scholarship Committee Chair at [email protected]
» Tim Ronan, UTA Scholarship Committee Co-Chair at [email protected]
» Misty Reis, Sentry Management at [email protected]
» Or any UTA Board member
One of the highlights of every year is the UTA Convention. The 2020 UTA Convention will be November 4–7 at the Hyatt Regency in Atlanta. Companies and sponsors have been contacting the UTA to sponsor the 2020 Convention. If you want to sponsor the 2020 UTA Convention, want to attend, or have questions, contact:
» Terry Williams, UTA Convention Committee Chair at [email protected]
» Hal Dickson, UTA Convention Committee Co-Chair at [email protected]
» Misty Reis, Sentry Management at [email protected]
» Or me, at [email protected]
The Training Committee will provide more free UTA webinars this year. On April 8, Charles Bowles from Commercial Truck Trader gave tips about selling trucks in today’s market. If you missed this webinar, you missed a good one. (See the separate article in the newsletter about it.) On April 23, Allison Transmission conducted a webinar about their transmissions. If you are a supplier and want to host a webinar, contact:
» Amy Shahan, UTA Training Committee Chair at [email protected]
» Jody Johnson, UTA Training Committee Co-Chair at [email protected]
Some very good news is that UTA membership has increased in 2020 compared to 2019. This is very positive. Thanks to the Membership Committee and to Misty Reis for their efforts. Thank you to everyone for renewing your membership.
The year 2020 has been a challenging and a different year for the truck business and the UTA so far. There are positive signs despite many of the negative things we see. The year 2020 is a year of change. The UTA is moving and pivoting with these changes.
We look forward to seeing you and many others at the UTA Convention in November.
Take care and be safe. n
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JUNECANCELED • 24-25 • 15th Annual Kansas City Reception and Golf Outing to benefit the UTA Jerome Nerman Family Foundation
SEPTEMBER29-30 • UTA's 2nd Annual Fishing TripLake TexomaAlberta Creek Resort, Kingston, OK Contacts: [email protected]@vanguardtrucks.com
NOVEMBER4-7 • 21st Annual UTA ConventionHyatt Regency Atlanta, GA
Note: Be sure to check the websites listed below for the latest information on these events.
JULY9-11 • Walcott Truckers JamboreeIowa 80 TruckstopWalcott, IA
AUGUST14-15 • Waupun Truck-N-ShowSponsored by Ripon PressWaupun, WI
19-22 • National Truck Driving ChampionshipsSponsored by American Trucking Associations Indianapolis, IN
CANCELED • 27-29 • Great American Trucking Show (GATS)Dallas, TX
SEPTEMBER23-25 • Accelerate! Conference & ExpoWomen In Trucking Sheraton Dallas Hotel Dallas, TX
24-30 • IAA Commercial Vehicles ShowHanover, Germany
OCTOBER 10-11 • California Trucking ShowCalifornia Trucking AssociationOntario, CA
24-28 • ATA Management Conference & ExhibitionSponsored by American Trucking Associations Denver, CO
NOVEMBER4-6 • NTDA Annual ConventionIndian Wells, CA
4-7 • 21st Annual UTA ConventionHyatt Regency Atlanta, GA
Industry Events Calendar UTA Events Calendar
2020 TRAINING
SELLING FOR SUCCESSTO BE RESCHEDULED: Houston, TX Courtyard Houston Intercontinental Airport 15838 John F Kennedy Blvd Houston, Texas 77032
TO BE RESCHEDULED: Fontana, CA Courtyard by Marriott Rancho Cucamonga11525 Mission Vista Drive Rancho Cucamonga, CA 91730
WILL PROBABLY BE RESCHEDULED: Chicago, IL – July 20 and 21 Courtyard Chicago O’Hare2950 S. River Road Des Plaines, IL 60018
MANAGING FOR SUCCESSTO BE RESCHEDULED: Kansas City – June 24This training will be held in conjunction with UTA’s annual Kansas City Golf Outing and Reception.
Ain’t No Stopping Us Now
Paul Huls, New and Used Truck Sales Peterbilt of Sioux CityI-29 Exit 43 (Singing Hills Blvd.)Sioux City, IA 51111-1013https://www.pbtruck.com/SiouxCity/(800) [email protected]
Paul’s been in trucking since 2006, when he started with Peterbilt of Sioux City. He worked in parts for a while before switching to sales.
Before coming to Peterbilt, Paul worked in auto parts for eight years.
Outside of work, Paul enjoys motor sports, especially sprint car racing. He also restores old cars.
Tyler Menhusen, Sales Team LeaderTrueNorth Companies 500 1st Street SE Cedar Rapids, IA 52401(319) 739-1431 [email protected]
Travis Sweet, Red Oval Manager Peterbilt Motors Company Peterbilt Red Oval Program Manager 1016 Ridgetop Dr. Justin, TX 76247https://www.peterbilt.com/(940) 367-2934 [email protected]
Travis came to trucking in 2008 bringing an interesting work background with him. Before trucking, Travis worked in retail management and sales, and was also the owner of a junk removal company. He joined the UTA looking for a “greater insight into the used truck market,” and to make new contacts.
Travis joined Peterbilt in 2011, starting at the company’s Denton, TX plant building trucks (working in cab trim). Speaking of his current job at Peterbilt, Travis says the job allows him to grow a secondary market for Peterbilt/PACCAR, which he enjoys.
When he is off the clock Travis enjoys spending time with his friends and family.
Travis had some thoughts to share with other UTA members. “I hope I can bring value to this group of individuals, putting our heads together to create methods and ways of improving Used Trucks involvement.”
In Memoriam: Don Tatum (1936-2020)The UTA Board is sad to report the recent passing of our long-time friend and associate, Don Tatum. Don passed away at his home in Wildwood, FL on May 10th. He started his career in trucking as a route driver for Jesse Jones Famous Hot Dogs. From this early start, he went on to become an owner/operator, pulling a flatbed for McLean Special Commodities Division. He sold trucks for Fitzgerald White/Freightliner/Auto-car Co. and R. F. Steiner International Motor Trucks in Huntington, WV. For a time, he was co-owner and managing partner of Tri State Kenworth in South Point, OH. In 1984 he moved to Kenworth of Tennessee in Nashville, where he served in a variety of positions until his retirement in 2000, as the Vice President of Used Truck Operations.
Throughout his career Don enthusiastically contributed to the advancement of the used truck industry. He was an active member of the Kenworth National Used Truck Group and an early supporter of the Kenworth Elite Program. He was also a contributor to the Kenworth Truck Company Elite Used Truck Manual and a well-respected innovator in reconditioning and remarketing trucks. Don was an early supporter of the then newly formed National Truck Protection Warranty Programs. Referring to this support, his friend John Bender recalled that Don referred to the folks at NTP as, “Damn Yankees, but good Damn Yankees!” According to John, that was high praise coming from Don.
But of all his contributions to the industry perhaps his greatest gift was his mentorship. He helped many others get started in the industry, including his friend John. “There is a substantial list of us who received a great deal of tutelage from ‘Daddy Don,’” John recalled. Don was a contemporary of UTA’s original founders and long-time members including, Jim Sunday, Joe Galowitch, “Bear” Nadolson, Dick Vulgamore,
Tom Cullison, and Eddie Walker, among many others.
Don was preceded in death by his beloved wife, Anna Marie, his son Douglas, and his brothers Johnny and Aubrey Tatum. He is survived by his three daughters, Joyce, Catherine, and Joanna. There will be a graveside Celebration of Life service on
Wednesday, May 20th at 11:00 a.m. at the Hermitage Memorial Gardens, 550 Schute Lane, Old Hickory, TN. “Bear” Nadolson will assist the Rev. John C. Bender, as liturgist. n
8
CONVENTIONCOMMITTEE
UPDATE
Terry WilliamsConvention Committee Chair
9
UTA’s 2020 Convention: You’ll Look Forward to it Now More Than Ever
We all look forward to the annual UTA convention. The fact that it’s always held in November is no accident. This allows us to review and celebrate the year that was and
plan for the year ahead. This year I do not think I have ever looked more forward to a convention and having the ability to see and celebrate with friends.
Highlights of what your convention committee has been working on: » Keynote address by NBA All-star, entrepreneur and former auto mechanic Mark Eaton
» The Marvin F. Gordon Lifetime Achievement Award will be presented Thursday during the general session
» Networking tours: Top Golf, Martin Luther King, Jr. Museum, Coca-Cola World, Georgia Aquarium, Trolley Tour
» UTA Dealer Group awards will be presented Thursday morning
» Networking events: welcome receptions, Vendor Expo, closing reception, tours
» The Vendor Expo, which is also your best opportunity to learn about new products and services for our industry
» Informative breakout sessions that will move your business forward in 2021
» More to come!
Early bird discounted registration is now open! Please log on to www.uta.org, sign in and then go to the Member Center to register and pick your networking tour. The UTA has stood firm in its goal to offer networking, learning, and a little bit of fun each fall. This year will not be an exception. There is No Stopping Us!
Sponsoring the convention will put your brand and product in front of hundreds of industry decision makers. These connections can pull your product or service to the next level and help make 2021 an amazing year for you. Sponsorships begin at $1,250 and include many unique benefits. To learn more, please contact Misty Reis at 877.438.7882 or [email protected].
I’m looking forward to seeing everyone in Atlanta, GA, November 4-7! n
Ain’t No Stopping Us Now
Continued on page 11
Doug’s Morning Coffee:The 80/20 Rule
Doug Shields National Director of
Used Truck Operations Rush Enterprises, Inc.
Many of you may have heard of the 80/20 Rule also
known as the Pareto Principle. When I ask my students about it most of them tell me that 20 percent of salespeople win 80 percent of the sales while the other 80 percent of salespeople survive on the remaining 20 percent.
That is almost always the case in any sales organization, regardless of the industry.
Here are some interesting 80/20 “constants” in sales that may intrigue you:
» 20 percent of a company’s customer base is responsible for 80 percent of its sales.
» 20 percent of a company’s customer base yields 80 percent of its profits.
» 20 percent of a salesperson’s actions yield 20 percent of a company’s sales.
So, the obvious question is: What are the top salespeople doing that the vast majority aren’t?
I’ve spent my entire career looking at this and here are my findings:
» Top salespeople focus and invest more time on the 20 percent of activities that yield 80 percent of the wins.
» Top salespeople focus on the 20 percent of customers that yield 80 percent of their wins.
» Average salespeople tend to waste their valuable time on the 80 percent of activities that yield very poor results long term.
» Average salespeople tend to target lower quality, 80 percent customers that yield more problems than profits.
To quote a good friend of mine, “80 percent of salespeople choose to major in the minors.”
What are some of these low ROI 80 activities that 80 percenters engage in?
» Engaging in a lot of small talk with fellow employees instead of talking with customers and prospects.
» Lunching alone or with fellow employees instead of customers or prospects.
» Performing low priority, non-urgent tasks during the day instead of doing them in the early mornings, evenings, or on weekends.
» Sitting at the dealership wait-ing for walk-ins or call-ins.
» Playing on their phones (social media, texting friends, check-ing the news) instead of using them to call potential buyers.
» Only phoning or calling on customers they’re comfortable with.
» Only prospecting small-time players with little potential for growth because they’re easy to talk to.
» Opting to send an email or text to an interested buyer instead of having a real conversation.
» Driving 50 miles to call on one customer and driving all the way back without dropping in on any other businesses.
» Obsessing over things they have no ability to affect.
If I hit a nerve with you on any of these points, you probably suffer from call reluctance. Call reluctant salespeople engage in “call avoidance” by choosing to perform low return activities during their “golden time” from eight to five. They tell themselves, and their managers, that they’re working when they really aren’t.
This work is “low risk” from an emotional perspective because they can’t be rejected and that’s exactly why they engage in it.
By engaging in low ROI activities during the day, they avoid the one thing that would result in a much higher ROI, and that is seeking
out and talking with ready and capable buyers.
Now let’s contrast the above low ROI activities with the following high ROI activities that 20 per-centers engage in daily:
» Blocking time to call prospec-tive buyers (new business) every morning, not stopping until they’ve gotten 10 quali-fied buyers on the phone and profiled their needs.
» Arranging lunches with cus-tomers and hot prospects well in advance with appointments on their Outlook Calendars.
» Engaging only in Dollar Produc-tive Activities during the day while handling any necessary busy work after 5:00 p.m., early in the mornings, or on weekends.
» Setting appointments and going to see (in person) at least 10 customers or prospects per day.
» Emailing at least 10 prospects or sold customers about specific trucks that fit them, every day.
» Strategically targeting prospec-tive Bronze (1-4 trucks), Silver (5-50 trucks), and Gold (51 or more trucks) level fleets equally.
» Building a calling list with loose appointments before and after lunch (the primary appointment) for every area they travel to.
» Controlling what they can control, meaning their quantity and quality of outbound activity.
You may have noticed some glaring differences in how you handle your business and how top salespeople handle theirs. If you did, then you’ve got some work to do.
You may realize that your “em-ployee mindset” is causing you to engage in work that isn’t condu-cive to making sales. You need to adopt a more “entrepreneurial
10
UTA and Commercial Truck Trader’s Virtual Marketing Webinar: Just the Ticket for Over 300 Attendees
Those truck dealers who can stay open are seeing more business than usual. That was just one of the valuable insights from April’s free webinar presented by the Used Truck Associa-
tion (UTA) and Commercial Truck Trader. More than 300 truck professionals attended the timely webinar, entitled Navigating Disruption in 2020: Tapping Into the Virtual Truck Consumer.
Charles Bowles, Commercial Truck Trader’s Director of Strategic Initiatives presented the webinar, which focused on ways dealerships can hone their websites and boost their social media strategies. Bowles also provided best practices for working with prospects through those all-important virtual-walk-arounds.
In addition, Bowles discussed important strategies for using a tool we’ve all been using for years—email. Through email, Bowles said, you can put yourself directly in the in-box of prospects as a reminder of the expertise you can offer. Email Service Providers, Bowles added, can help you create email campaigns and monitor your email performance. “It’s worth taking the time to find the right ESP for your needs,” Bowles said.
During the question and answer session after the webinar someone asked: “What’s the most important thing I should be doing right now?” Bowles’ answer: “Check in with your customers. You need to let them know you’re open for business (even if only virtually).”
The demand for trucks is out there. Bowles said that Amazon is hiring 100,000 new support people. That’s because people are shopping online now more than usual and all those things they’re buying will likely be delivered by truck.
There’s no doubt attendees found the webinar useful. “The webinar was timely, accurate, and presented in an easily understood manner,” said UTA President Craig Kendall. Amy Shahan, Chair of UTA’s Training Committee said the webinar: “Really hit home with attendees given the many calls and emails I received afterwards.”
Those who were unable to attend the webinar, or attendees who want a recap, can review the presentation here on the UTA website. n
Doug's Morning coffee continued from page 10
mindset” that helps steer your decisions and activities toward what pays you.
The best advice I ever got is to treat your time like it’s worth $100.00 an hour. If your time is worth that much there are some things that you simply aren’t going to do anymore.
You may have to delegate certain necessary tasks, or at the very least delay them to a later time that doesn’t interfere with your “golden time.”
You may have also realized that you fear rejection, and that fear is costing you a lot of money. The only way to get past it is to do the thing you fear repeatedly until you no longer fear it.
If you do it enough, you’ll be able to manage through any residual fear. I don’t think we ever completely lose the fear, but it does become a lot more manageable.
As a wise man once said, “It’s okay to have butterflies as long as they fly in formation.”
The only thing that matters in a salesperson’s existence is getting the signature on the line that is dotted.
Top salespeople engage in the precise activi-ties necessary to create these opportunities. They are almost exclusively outbound activi-ties, so they start with you doing something!
Here’s a tip: If it scares you, it’s probably something you should be doing.
Everything else is just the noise of defeat.
Good selling! n
11
their profits in April to nonprofits helping people affected by the virus. Thanks Paper Transport for #SteeringTowardKindness
To keep the momentum going, we would like to hear your stories. Let us all look at the bright side of this pandemic and show each other how we are steering toward kindness. If you are on the Women In Trucking Facebook page, post your story there and tag #Steering-TowardKindness. Share it on Twitter and tag us @WomenInTrucking.
While we work through this devastating virus, we can be assured that the trucking industry will continue to deliver the needed food and supplies to help the world deal with this horrific challenge. In every one of those cabs is a professional driver who is braving the challenges he or she is facing to complete the load. Thank you for #SteeringToward-Kindness. n
walking up to the window was prohibited. McDonalds took the lead and promoted their mobile app so drivers could pay and receive the order in a designated area. Thanks, McDonalds, for #SteeringTowardKindness
Hotels and Motels are concerned about accommodating profes-sional drivers and many are closing their doors. Drury Inn & Suites reached out to us to let us know that their staff is welcoming drivers and have reduced rates to their cost. They are offering a “Travel Healthy” room for $59 to include free breakfast, fresh popcorn and free evening recep-tion to include hot food and cold beverages, including beer and wine. Pools and whirlpools are also available for drivers to ease those muscles. Thanks, Drury Inn, for #SteeringTowardKindness.
Truck stops are vital for drivers who need parking, food, and fuel. Sapp Brothers is suspending paid parking at all locations. Love’s has converted their self-service grills and delis to full service so their team members will serve the food products. The nation’s truck stops have remained open, continue to provide fuel and food and show-ers, but report they have imple-mented higher levels of cleaning and sanitization.
Trucking companies are working hard to continue delivering medical supplies, hand sanitizers, and COVID-19 test kits. Many carriers are providing supplies and snacks to their drivers. Paper Transport, Inc. in Green Bay, WI, went beyond that and President Jeff Shefchik pledged one half of
Women In Trucking:#SteeringTowardKindness
Ellen Voie CAE PDC President/CEO
Women In Trucking Association, Inc. (920) 312-1350
Until a few short weeks ago, none of us could have
imagined a world with COVID-19, social distancing, and government mandates to stay in our homes. Each day we listen to news reports telling us the numbers of people affected and how many deaths have occurred.
In the past, we have all agreed that the trucking industry had an image problem. First, most of the folks who drive four wheelers do not understand how to operate around tractor trailers. In addition, they do not appreciate the impact the trucking industry has on their own lives, much less the economy as a whole.
Now, as the airlines, motor coach and school bus, passenger rail, and other modes of transportation are suffering because of the virus, the trucking industry continues to move forward (literally!).
The average citizen is finally starting to understand how that big truck on the road impacts them, personally. In fact, we are seeing a surge in appreciation for the drivers who are delivering food, gas, household goods, and hand sanitizer!
While governments shut down restaurants for indoor seating, they did not consider how a driver was supposed to maneuver a rig into a drive thru lane, where
12
Reprinted by permission of Harvard Business Review Press. Excerpted from The Leader You Want to Be:
Five Essential Principles for Bring-ing Out Your Best Self—Every Day
by Amy Jen Su. Copyright 2019 Amy Jen Su.
All rights reserved.
The Leader You Want to Be: Part 1 Don’t Underestimate Your Ripple Effect: Choose a Positive Legacy Editor’s Note: The following excerpt is from the book The Leader You Want to Be: Five Essential Principles for Bringing Out Your Best Self—Every Day by Amy Jen Su. In this part of a two-part excerpt, Su discusses the effect that leaders have on those around them, a kind of ripple effect. Su defines in some detail what the ripple effect is, and how best to manage it to create the impression and working environment wanted. In Part 2, to be published next month, Su discusses this ripple effect outside of the office and how it helps you master your leadership skills.
Su mentions two types of Leaders, which were defined earlier in her book. Leader A works hard, is energized by his accomplishments, and above all is effective. Leader B, while also energized by his or her accomplish-ments, is also sometimes easily frustrated by distractions, is always checking his email, and spends a lot of time spinning his wheels. Su contends that Leader A and Leader B are representative of all of us. We’ve all had our A or B days.
One of the biggest responsi-bilities of leadership is the
effect we have on others. As a leader, you are the standard bearer, the one out front, the
example everyone sees and emulates. You are the one who sets goals, objectives, and dead-lines, and you are also the one who sets the tone, the culture, and the general ethos of your work environment. And the more senior, the more-high perform-ing, and the more visible you are as a leader, the greater the effect you have.2
If you call to mind the visual of a pebble dropped into a lake, you’ve got an apt image of how leadership begins from that one point—you—and flows out in ever-widening circles to touch team
members, divisions, organizations, shareholders, and, depending on how high your profile is, entire industries or communities. What do you want that ripple effect to look like and feel like for others? Depending on which mode you’re in, Leader A or Leader B, you’ll
have a very different impact. Beyond the negative consequenc-es of Leader B mode on your own stress levels, effectiveness, and health, your Leader B mode also negatively impacts whole teams of people (direct reports or col-leagues or both), or even whole organizations.
Like a set of dominoes, your Leader B “ripple” cascades out to affect anyone you work with, creating more Leader B days for others. As I shared in Chapter 1 on the pitfalls to performance, when you, the leader, are focused on just doing more (with no prioriti-zation and focus on the value you add), on doing it now and tele-graphing a state of emergency (without an appropriate discern-ment or clarity on the true level of urgency), on doing it yourself (creating bottlenecks, being in the weeds, and micromanaging), or on just doing it later (putting off caring of your health and well-being), it’s not only you who suffers but also your loved ones, your teams, your organizations, and ultimately the mission and goals you hope to achieve.
Without self-awareness, it’s all too easy to affect others with a nega-tive attitude or unintentionally foster an atmosphere that under-mines your team’s effectiveness.
Remember that our unresolved inner conflicts (such as the need to prove ourselves, people-please, one-up others, or control others) inevitably play out in our outer world too—at work and at home. Armed with self-knowledge, however, we can take whatever steps we need to in order to become the very best leader we were meant to be, in any context.
Fortunately, the ripple effect holds true for Leader A as well. The more continuously you feed Leader A, the greater your positive effect. According to a recent Gallup research report that surveyed 105 teams over six three-month periods, researchers found that the well-being of team members is directly dependent on the well-being of others on the team—and that the effect increases over time. Indi-vidual team members who re-ported experiencing what re-searchers called “thriving well-being” in the first round of the study were 20 percent more likely to have thriving team members six months later.3
n
2. Amy Jen Su and Muriel Maignan Wilkins, “What’s Your Ripple Effect?,” Leader to Leader Magazine, March 17, 2014, https://doi.org/10.1002/ltl.20127.
3. Jennifer Robison, “Well-Being Is Contagious (For Better or Worse),” Business Journal, November 27, 2012, https://news.gallup.com/businessjournal /158732/wellbeing-contagious-better-worse.aspx.
13
How Truck Dealers Can Meet Today’s Challenges
While I was growing up, my father, whom most people know as “Bear,” was a used truck salesman at the International Used Truck Center in Columbus, Ohio. For those of you
who know him, he is a man’s man. He has always enjoyed outdoor activities and it should be no surprise to anyone who meets him that he was an all-star football player, white-water rafting guide, Cub Scout Master, and a “truck guy.”
As I recall my many adventures with my dad, I often wonder what made this bearded mountain of a man who was not overly interested in tech-nology, bring home computers like the IBM PCjr for me and my brothers to use. Remember, this was back when computers were not popular, and most people didn’t have one in their homes. For the young crowd reading this, this is back in the 80’s before “Al Gore invented the Internet” and it became a household word. This is before Google existed, and when computers had a whopping 128K of RAM memory. If you are young enough so you can’t remember a time without the internet, you probably don’t get those references.
I could ask him why he always made technology available to us, but I suppose it is more fun to just guess. Whatever his reason, I credit much of my thinking today to him. During my formative years, trucking and technology were both big influences in my life. This was the time in my life when I would join him at the dealership every day to detail trucks, do lot work, degrease frames and fifth wheels, and line up the front row. But I was also messing around with computers and familiarizing myself with the new world of home computer technology before most people did. This gave me a unique paradigm in my thinking. I am first and always a “truck
guy,” but it has always been intuitive to me to think of technological solutions to dealer opera-tions and problems. So much so that this is how the start of my company came about— but that is a story for another time.
Because of this, I am a “truck guy” at heart and have extensive knowledge of the industry and dealer-thinking. The disparity between the 1980’s and today is astounding as we are all now connected with super-computers in our hands many hours of the day. The truth is that the tech-nology that many people in the truck industry use has become far more advanced. There is no time in history that the deficiencies have been more apparent, and this time period will likely make or break many companies based on their ability to adapt, especially when it comes to using technology. I have been talking to dealers across the country about dealing with remote sales staff, social distancing, and the virus’s effect on their used truck operations and business.
As I write this, President Trump extended the quarantine and several more dealerships are scrambling to maintain their efficiencies and processes while sending their staffs to work from their homes. Many dealers today still email excel spreadsheets and handwrite appraisals. It is not that this is “bad” or doesn’t “work,” but that some of these practices are challenged when efficiencies are needed, and flexibility is paramount. How can dealers evolve in just a few short days or weeks to have their teams running at full speed and perhaps even better than before?
Meet Face-to-Face The first idea is for dealers to get together “face-to-face” with their internal sales teams and with customers that are quarantined or outside of a safe traveling zone. The best way to do this is to hold web meetings. This idea is not new, but it’s not a way that many dealers are accus-tomed to communicating.
A few services that I recommend are:
1. Zoom Meetings This meeting style is what I call the Brady Bunch. For those of you who don’t get this reference, it is mostly a way to view everyone on a screen in little boxes using their web cameras. Screen sharing, video conferencing, call-in features and more are all included. This service has free and pro offerings so this tool can be used for a variety of purposes and by different sized companies.
Ethan Nadolson is a past UTA Board Member and President/CEO of SOARR
www.soarr.com740-587-1695
14
How Truck Dealers Can Meet Today’s Challenges
2. WebEx This is the service that we use at SOARR. It is a little more technical and is a great platform for meetings. I think it is more geared toward presentations and screen sharing but it does offer video conferencing, call in numbers, and more.
3. GoTo MeetingThis service is an easy to use online meeting platform that is similar to WebEx but is probably a little less technical, meaning you can more quickly join a meeting. This service has the same type of features as WebEx and feels more like a presentation or screen sharing service than Zoom.
All three of these are great platforms and offer mobile apps as well as desktop capabilities. There are plenty of others out there, but these three are the most common ones within the same price range, and so worth considering.
Invest in A Cloud- Based Inventory Management Platform
Internal communication is critical, and it is easy for dealers using spreadsheets to have inaccurate or outdated information when everyone is working from a different place. Those not on a cloud-based solution should look to see what’s available for allowing sales staffs to log into the cloud for their inventory. When looking for a platform it is important to find a service that will accept photos, organize inventory, have robust search and filter functions, and offer ways for the sales team to log quotes for remote management overview.
Use A Truck Inspection Service as Your “Eyes” Truck inspection services are a great way to replace your eyes on the ground. Traditionally, salespeople, managers, or other experts would go to a fleet or travel to view trade packages. This is not possible in most cases today with our current market conditions. When looking at inspec-tion companies consider:
» Do they offer National Coverage?
» Is the inspection accepted by warranty companies?
» Is it a mechanical inspection or just the specs?
» Is it integrated with your inventory system, so you don’t have to reenter information?
» How fast can they deploy?
» Do they offer a Certification?
Cost is a consideration, but not at the expense of quality. The inspector becomes your eyes on the truck and the quality of the inspection can make or break a deal. Remember, “no deal is better than a bad deal.”
Use Online Negotiation and Selling
While online negotiation and selling are not widely used in our industry, the case for imple-menting this type of platform has never been stronger. Dealers and manufacturers alike are turning to solutions that streamline the buying and selling process. The efficiencies that are afforded by transacting online are incredible and will eventually become commonplace. Don’t believe it? Look at Amazon.com or Carvana for parallel examples.
Set Your Dealership Up for A Successful Future Though the economic and social effects are painful, the COVID-19 pandemic has catapulted the world deeper into the digital age out of sheer necessity. Social distancing is here for the foresee-able future and the age-old concept of “adapt or die” has reared its ugly, uncomfortable head. Once dealers go through the pains of change, there will be no going back to a less efficient way of conducting business. The great news is that there are solutions! The even better news is that trucking is what is keeping our country running and we all can be a part of our country’s suc-cess and this part of history. Let’s all band together as UTA members and share in the success. Let’s keep America Open for Business One Truck Load At A Time! n
15
Sleeper Tractors – RetailRetail pricing continues to outperform auction, and that gap has widened. We expected to see pricing fall more notably in April, following the auc-tion channel. This didn’t happen, suggesting the market may have found its bottom.
The average sleeper tractor retailed in April was 61 months old, had 466,621 miles, and brought $42,292. Compared to March, this average sleeper was 8 months newer, had 11,615 (2.6 percent) more miles, and brought $2,032 (4.6 percent) less money. Compared to April 2019, this average sleeper was 10 months newer, had 1,658 (0.4 percent) fewer miles, and brought $14,471 (25.5 percent) less money.
Looking at trucks two to five years of age, April’s average pricing was as follows:
» Model year 2019: $106,750; $1,309 (1.2 percent) higher than March
» Model year 2018: $83,969; $485 (0.6 percent) higher than March
» Model year 2017: $57,751; $2,325 (3.9 percent) lower than March
» Model year 2016: $44,595; $2,340 (5.5 percent) higher than March
Month-over-month, late-model trucks brought 0.3 percent more money. In the first four months of 2020, pricing averaged 12.2 percent lower than the same period of 2019. Depreciation in 2020 is averaging 2.2 percent per month, an improvement from last month’s 2.7 percent, and a better result than we expected.
See the “Average Retail Selling Price: 3-5-Year-Old Sleeper Tractors” graph for detail.
Dealers retailed an average of 3.4 trucks per rooftop in April, 0.3 trucks lower than March, and 0.9 trucks lower than last April. Retail purchasing remains limited primarily to replacement demand.
See the “Number of Trucks Retailed per Dealership Rooftop” graph for detail.
J.D. Power Valuation Services UpdateClass 8 Retail Market Held Up in April
In the first full month of sales under the economic shutdown, Class 8 auction volume was relatively healthy, while pricing pulled back. The
retail channel saw lower volume but more stable pricing. Medium Duty trucks had a generally lackluster month.
Sleeper Tractors – AuctionGiven the shutdown, we were encouraged to see volume very similar to March, which means seasonal activity returned this year. Pricing was less positive, falling fairly substantially, as expected. But at least trucks are still moving. See below for average pricing detail for our benchmark model.
» Model year 2017: $35,000 average; $400 (1.1 percent) lower than March
» Model year 2016: $25,000 average; $2,150 (7.9 percent) lower than March
» Model year 2015: $18,000 average; $4,000 (18.2 percent) lower than March
» Model year 2014: $15,725 average; $775 (4.7 percent) lower than March
» Model year 2013: $13,750 average; $775 (6.0 percent) higher than March
Month-over-month, our benchmark group of 4-6-year-old trucks brought 7.7 percent less money. In the first 4 months of 2020, pricing averaged 28.6 percent lower than the same period of 2019. Depreciation in 2020 is now averaging 2.2 percent per month, a healthy figure given the economic situation.
With the economy very gradually opening back up, we could now be at or near the trough for pricing. We could see some uptick in volume in upcom-ing weeks, but demand will still be limited mainly to replacement iron.
See the “Average Selling Price: Benchmark Sleeper Tractor…” and “Volume of the Three Most Common Sleeper Tractors…” graphs for detail.
$0
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Average Selling Price: Benchmark Sleeper Tractor Sold through the Two Largest Nationwide No-Reserve Auction Companies
MY2011
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Source: J.D. Power Valuation Services
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Volume of the Three Most Common Sleeper Tractors (3-7 Year-Old) Sold through the Two Largest Nationwide No-Reserve Auctions
Source: J.D. Power Valuation Services
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May JulSep Nov
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Average Retail Selling Price: 3-5 Year-Old Sleeper TractorsAdjusted for Mileage
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Number of Trucks Retailed per Dealership Rooftop
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
16
Looking forward, we still see used truck pricing recovering roughly in step with the gradual re-opening of the economy. This means the auction market should see some firming in the summer, followed by mild to moderate increases in the fall and into 2021 (with some pauses here and there, particularly in October and November).
See the “Retail Value Forecast” graph for a look at how we see used truck pricing unfolding over the next four years.
Medium Duty Trucks
Volume was down across the board. Pricing was mixed.
Starting with Class 3 – 4 cabovers, a newer mix of trucks combined with a small sample size pushed our average much higher than last month. April’s average for our benchmark group was $15,144, $4,506 (42.4 percent) higher than March, and $486 (3.3 percent) higher than April 2019. The first 4 months of 2020 are averaging 23.0 percent lower than the same period of 2019. April’s outlier result pushed our monthly depre-ciation average into the appreciation zone. We do not consider this result representative of the market, so we will revisit this figure next month.
See the “Average Wholesale Selling Price: 4-7-Year-Old Class 3-4 Cabovers” graph for detail.
Looking at Class 4 conventionals, average pricing for our benchmark group was $20,263, $1,318 (7.0 percent) higher than March, and $2,484 (14.0 percent) higher than April 2019. The first 4 months of 2020 are averaging 3.8 percent higher than the same period of 2019. Depreciation is averaging 4.7 percent per month this year.
Class 6 conventional pricing averaged $19,045 in April, $2,527 (11.7 percent) lower than March, and $7,436 (28.1 percent) lower than April 2019. The first 4 months of 2020 are averaging 16.4 percent lower than the same period of 2019. Depreciation is averaging 4.0 percent per month this year. Chris Visser, Senior Analyst and Product Manager Commercial Vehicles
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
2015 2016 2017 2018 2019 2020(f) 2021(f) 2022(f)
Retail Value ForecastPercent Change Year-over-Year
3YO Truck
4YO Truck
5YO Truck
Source: J.D. Power Valuation Services
We were somewhat encouraged by pricing data, particularly for light-GVW conventionals, suggesting there is still demand among the contrac-tors, delivery operations, small business owners, and other segments that buy trucks in this category. On the other hand, volume for all GVW classes was somewhat disappointing, suggesting a broader pullback in demand for the medium duty segment overall. We had predicted medium duty trucks to weather this storm fairly well, since local deliveries and construction activity have not been curtailed appreciably. With that in mind, we’ll see if volume improves next month. As the country gradually opens back up, there is more positive than negative pressure in the marketplace.
See the “Average Wholesale Selling Price: 4-7-Year-Old Conventionals by GVW Class” graph for detail.
ForecastCautious optimism is in the air as the country very gradually reopens. At the time of this writing, freight volumes look to be lifting off slightly from the post-stockpiling trough. Those measures should improve mildly in step with the incremental increase in business activity. There will be no shortage of used trucks at least through summer, but the worst of the depreciation should be behind us. We haven’t appreciably changed our residual value forecasts for Q2-Q4 of 2021, and we still see pricing returning close to our existing trend by that time. n
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Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 CaboversAdjusted for Mileage
Source: J.D. Power Valuation Services
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2 per. Mov. Avg. (Class 4 Price)
2 per. Mov. Avg. (Class 6 Price)
Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW ClassAdjusted for Mileage
Source: J.D. Power Valuation Services
17
Used Truck Sales Down in March: ACT ResearchSales Remain Positive Y/Y and YTD
The calm before the storm? ACT Re-search’s March report on Class 8 used truck sales provided both good and bad news. Month-over-month sales dropped 8% ACT said, but longer term, sales rose 5% over March 2019’s tally. Looking at 2020’s first three months versus the same period in 2019, volumes are up 15%.
ACT also released other data showing average prices were down 1%, while average miles and age were up 2% and 1% respectively.
“In normal times, sales increase around 15% from February to March, but these are not normal times, and the disconnect is likely the result of COVID-19,” said ACT VP Steve Tam. “Freight was relatively strong for a good portion of March, as retailers and grocers scrambled to restock empty shelves. With that work largely complete, freight is falling and used truck sales and prices are expected to do the same,” Tam added. “The economy is expected to descend into recession, if it has not already done so, and with uncertainty about virtually everything high, the well prepared will plan for the worst while hoping for the best.” n
FTR’s February TCI Up ModestlyLikely the Last Positive Month Until 2021
FTR reported February’s Trucking Conditions Index (TCI) reading was slightly positive at 0.96--down only a bit from January. But it should come as no surprise that FTR also noted the TCI will soon fall into negative territory and stay there until “well into 2021.” Sharp declines in freight volumes, utilization, and rates due to the COVID-19 pandemic are the reasons.
The spate of negative reports is forecasted to begin with March’s TCI. FTR said that before the COVID crisis began in March, the TCI was positive for the first three months of the year, and that three straight positive reports hadn’t been seen in a year.
“Although trucking conditions might prove to be comparable to the worst of the Great Recession, the trucking industry--like the rest of the econo-my--has never seen such an abrupt deterioration. The need to restock grocery shelves provided a brief boost for some segments, but the eco-nomic shutdown now has taken a toll on the whole industry. While an economic restart likely will begin in May, the damage wrought during this period will weaken trucking conditions for months to come.”
FTR’s Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel price, and financing. n
March Class 8 Sales Sink: FTRMarch’s preliminary NA Class 8 orders sunk to their lowest level since 2010, FTR recently reported. At 7,400, orders were down 48% m/m and down 52% y/y. FTR noted that “a significant number of fleets canceled orders previously placed due to the sharp and sudden downturn in economic conditions.”
Uncertainty over the COVID-19 crisis’s duration is limiting orders to short-term, definite needs. FTR expects orders to stay near 10,000 trucks for a few months “until economic activity regenerates.” Over the last 12 months, 170,000 Class 8 trucks were ordered.
“The only good news here, is that the number was still positive despite the high number of expected cancellations,” said Don Ake, vice president commercial vehicles. “The gross order number is probably higher than 10,000 trucks, which means at least some fleets need more vehicles. A few carriers are doing well in the short-term, depending on the region and the type of freight being hauled.”
Ake added that FTR expects most fleets will “pause their replacement cycles” due to the crisis. “Large fleets that have immediate needs and the financial resources will continue to place modest orders. Additionally, smaller fleets may tap into the used truck market for their short-term needs to reduce the financial risk. The second quarter will be tough on the Class 8 market, and the third quarter is still highly uncertain,” he added. n
FTR is Providing Open Access to Intelligence Re-ports Amid COVID-19 Industry research firm FTR has made available at no charge a series of reports based on the forecasting models, insights, and outlooks of its freight experts. FTR said it recognized that with the markets in disarray, and with uncertainty on the near-term future, its experts are now providing “unbiased outlooks and insights” to more than just its clients.
The reports are available at www.FTRintel.com/Coronavirus. FTR will update this site as COVID-19 continues to impact global markets. “As prevention steps and shutdowns due to the novel coronavirus continue to impact global markets, FTR is allowing open access to the intelligence it can provide to help businesses navigate this situation,” the company said in a media release.
“The economy and freight transportation have been turned upside down, and it is more important than ever to offer everyone an unbiased look at how we see the environment changing. The more information you have, the better decisions you can make,” FTR Chairman and CEO, Eric Starks said. “We have been producing content to keep our clients in the know, yet I feel it is our responsibility to help everyone through this difficult time. This is why I have instructed the FTR team to provide as much content and analysis to the public as possible about the impact of this crisis.”
Key headlines from the reports available for download:
» All sectors of transportation will feel dramatic effects from the corona-virus shutdowns.
» Economic forecast moves sharply lower as many downside risks are already in effect.
» Rail equipment is in for an extended downturn.
» A sharp economic contraction will slam CV production.
» FTR expects a recession, with major downside risks.18
News continued on page 18
Volvo Announces New Financing Options in Pan-demic’s WakeVolvo Financial Services announced it is offering an “enhanced finance program” to those U.S. customers buying or leasing a model year 2020 or 2019 Volvo VNL, VNR, VNX or VHD. The program was created in light of the economic challenges resulting from the COVID-19 pandemic.
“We understand how important it is—especially during this unprec-edented situation with the coronavirus--for trucking companies to maintain strong cash flow,” said Stephen Yonce, vice president of VFS. “To do our part, Volvo Financial Services continues to seek out ways to help our customers through these difficult times.”
Volvo’s “Hammer Down 2.0” Program extends the first payment for 60 days for qualified buyers of Volvo VNL, VNR and VNX models and for 90 days for qualified buyers of VHD models in dealer stock inventory. The program also offers low to no down payments for qualified applicants. For model year 2019 trucks, customers can receive up to a $5,000 payment credit on initial monthly installment or lease payments, and up to $3,000 payment credit on initial monthly installment or lease payments for model year 2020 models.
Volvo said Daycab models will also receive an engine plan and purchased Engine Aftertreatment (EATS) coverage for 3 years or 300,000 miles. VNL, VNR and VNX sleeper models will receive an engine plan and purchased EATS coverage for 4 years or 500,000 miles.
“Trucking companies and professional drivers are more important than ever,” said Peter Voorhoeve, president of Volvo Trucks North America. “Volvo Trucks North America is committed to doing its part to alleviate some of the stress created by COVID-19, and we will continue to offer programs to help our customers and keep trucks and the economy moving.” n
Volvo Financial Services (VFS) is offering customers in the U.S. an enhanced finance program should they wish to purchase or lease a model year 2020 or 2019 Volvo VNL, VNR, VNX or VHD model during this time of uncertainty as a result of COVID-19.
Daimler and Volvo Join Forces to Develop Hydrogen Fuel Cell TechnologyDaimler Truck AG and the Volvo Group have announced a joint venture aimed at developing fuel cell technology and moving the world closer to a sustainable energy future. The 50/50 joint venture centers on develop-ment and large-scale production of fuel cells for applications in heavy-duty vehicles and “other use cases.” Currently, there is a preliminary non-binding agreement between the companies.
Both Daimler and Volvo see fuel cell technology as a key to attaining “CO-2 neutral transport.” “Transport and logistics keep the world moving, and the need for transport will continue to grow. Truly CO-2-neutral transport can be accomplished through electric drive trains with energy coming either from batteries or by converting hydrogen on board into electricity. For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades. This joint initiative with the Volvo Group is a milestone in bringing fuel-cell powered trucks and buses onto our roads,” said Martin Daum, Chairman of Daimler Truck AG’s Board of Management.
“Electrification of road transport is a key element in delivering the so-called Green Deal, a carbon neutral Europe and ultimately a carbon neutral world. Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle, and a complement to battery electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole. By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development…to establish the fuel infra-structure needed,” said Martin Lundstedt, Volvo Group President and CEO.
In a media release the companies said the joint venture will operate as an “independent and autonomous entity.” And Daimler and Volvo continue to compete in all other areas of business. “Joining forces will decrease development costs for both companies and accelerate the market intro-duction of fuel cell systems in products used for heavy-duty transport and demanding long-haul applications.” n
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The more you believe in yourself, the easier it is to get others to believe what you say. You can only convince others of
what you, yourself, believe.
News continued from page 17
International Trucks Names Ed Rietman 2019 Dealer of the Year International Trucks recently named Ed Rietman, dealer principal, West Michigan International, its 2019 North American Dealer of the Year. The award recognizes top International dealers for their achievements in providing uptime and in annual sales, service, and customer satisfaction.
“We’re proud to present Ed and his entire staff at West Michigan International the 2019 North American Dealer of the Year award, our highest honor” said Persio Lisboa, executive vice president and chief operating officer, Navistar. “With the opening of a brand-new facility, an untiring enthusiasm to deliver premier customer service and continual achievement of Dealer Performance Standards goals, this past year was a milestone for the entire West Michigan International team. Thank you for epitomizing what it means to be the customer’s No. 1 choice.”
West Michigan International, LLC is a full-service truck dealership, It has several locations in Michigan. International said the company has over 60 service bays across its locations allowing it to service and maintain all-makes of vehicles from quick lubes to complete powertrain and engine rebuilds. A round-the-clock emergency break down, towing, and recovery service is also available. West Michigan International has 280 employees.
“This award is humbling as I think about the more than 30 years of dedication to our customers in western Michigan, eight of which have been with International,” said Rietman. “A sincere thank you to my diligent and passion-ate staff for consistently delivering quality products and premium service that has earned our company a reputation of positively impacting our customers’ businesses. I am proud to say they have earned this award. Of course, our gratitude is also to our loyal customers who put their confidence and trust in us as their business partner and friend. And last but certainly not least, we value our partnership with the Navistar team who is always there to support us and help us accomplish our goals.” n
Women In Trucking’s 2020 Female Driver of the Year: Susie De RidderWomen in Trucking named Susie De Ridder, a driver for Armour Transportation Systems in New Brunswick, Canada, the winner of its first annual female Driver of the Year award.
De Ridder was among three finalists. The others were Carmen Anderson, a company driver at America’s Service Line, LLC and Sarah Fiske, a company driver at FedEx Freight.
De Ridder has driven a truck for 40 years. She has roughly 4 million accident-free miles. She is much more than a long-term safe driver, al-though that’s certainly award-worthy in itself. De Ridder actively promotes the indus-try, appearing in trucking magazines and educating many women about the opportunities available in the trucking industry. As an industry spokesperson, she regularly speaks at industry events as well as serving as a panelist. She also conducts ride-alongs for lawmakers. In addition, De Ridder’s a mentor, regularly attending Girl Gala Events at high schools and community colleges. She par-ticipates in the Convoy for Hope Atlantic, raising money for cancer research and awareness. In 2019, she won first place for best-dressed driver, best decorated truck, and recognition as the driver who raised the most money in Convoy’s 10-year industry.
WIT is off to a great start in selecting De Ridder as its first Female Driver of the Year. n
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P hotos from the
See You in Atlanta in November21
Last month’s column opened with trepidation. We had no way to know, Dear Reader, if
this month would find us better or worse for the wear of the past few weeks. We want you to feel reassured as you begin this little column that it is safe to continue. Unlike most of the rest of what we read and watch, we have no intention of writing about the COVID-19 threat or the 43 days we have currently spent here in the house together, alone. We don’t need that, and honestly, you don’t either. Instead, we’ve gathered a few little tales from what life is like in this quiet little town when we are not shut off from the rest of the world. It’s all good!
Before this all began, we’d been sharing between us some stories of life every day here in the bustling corner of our town where three of our four schools are right behind our house. We love the sound of the school bells chiming and the daily parade of school buses causes us no concern at all. It’s a lively little place to watch life go by. It’s also a lively place to have others watch us live here. Years ago we did a massive renovation in our new/old house. We converted the attic into a home office, a family room, and a laundry room. The work took six months to complete, and it was quite a subject of interest to those who live nearby. When the work was almost finished, we went into the local furni-ture store down the street. Owned by the same family for nearly a hundred years, this shop is known for great customer service and quality materials. As we walked through the door a salesperson, a woman we’d never seen before, exclaimed, “OH, how’s the renovation going?!!!” She must have watched our con-tractors hoist the drywall up into the attic windows with a crane! Who knew? So, this is just an example of what life is like here.
More recently, we saw on social media that someone had found a debit card at the ATM machine at the bank. They put up a posting giving enough details to identify the neighbor and offered to drive the debit card to its rightful owner to ensure its safety. Not more than an hour later, a young man thanked the finder and explained it was his dad’s card. No harm came to the loser, and all ended well. It’s not the first time such neighborly kindness came from that small bank. Stopping at the ATM one afternoon, we found a note. “You left your money in the machine. I put it in an envelope, and it’s inside the bank.” It’s just another anonymous act of kindness to share.
But sometimes, kindness isn’t so easy to give or take. One recent Sunday morning, while waiting in a long and dreary line at the local
bakery, we witnessed the most incredible scene yet. The line was across the shop and out the door onto the sidewalk. Trust us, this baker’s work is worth the wait and the expense. Everything there is so wonderful that we limit ourselves to no more than one trip a month. It’s just too tempting. On this particular day, having made our way through to the payment stage, we saw a man come into the back of the line. Holding up a folded $20 bill, he shouted, “Did anyone lose a $20?” Folks quickly checked for their money and a woman behind us realized she’d let the bill slip from her pocket while waiting outside. “Here you go,” said the hero as he reached across the crowd to hand it back. “Oh, no,” replied the woman. “You go ahead and keep it. Thank you for being so honest.” Then came the disagreement, “NO, I don’t need it,” said our hero. “I’m just glad I found the owner.” They argued back and forth between them briefly and the woman finally gave up and took her bill back. Where else have we ever seen any two people argue over the right to give away $20? No place we know of is quite like this.
And last of all, we come to our happy surprise of this past month. You may recall a town-wide road project that has now gone into its fourth year. That’s four years of torn up roads, flagged traffic, and detours. We didn’t really complain, although this all happened right outside our front door. It’s a beautiful project now very near completion. We’ve personally thanked the road workers and written to our town government to commend the road crews and rejoice with them at the beautiful job that makes our town even better. We’ve also made it a point to wave and smile at the flaggers and treat them with respect. Some of our neighbors have been less neighborly, but that’s on them. Early one recent morning, we heard a commotion on our front lawn. Looking out we saw a small group of workers planting three beautiful little trees across our front lawn! We knew the project included new landscaping, but we didn’t expect anything to come our way. Mostly the trees removed for the project were replaced, and that didn’t include any on our property. Did these workers make sure we got some trees, because we treated them with kindness and respect? Maybe that’s true, and maybe it’s not. Still, it was the right way to respond, and we felt better for having faced the challenge that way. Now our beautiful home in our beautiful town is even more beautiful, and life looks quite good from where we sit. n
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Deb and Brad [email protected]
