Volume 4, Issue 5 Contact the UTA @ 1-877-GETS-UTA or www.uta.org June 2003

President’s Message…I find it hard to believe that it is June already,and we are six months into the year. How do youlook at it? Do you see the year as half gone orthat we have six more months before the year isover? I choose to look at it as we have half ayear left to do business. And I definitely see achange to the better at this time over last year. Itseems as if most major sales outlets are expect-ing a good third and fourth quarter. We all see ashortage in available inventory, prices increasingslightly on certain models, customers beginningto come back to our doors.

Repeat customers remain our largest percent ofbusiness, and prospecting by our salespeople stillbrings in about a third of our customers. Whenyou look at these two aspects of our business, weare reminded that this remains a people busi-ness. No matter how we slice or dice it, it stillshows that people buy from people or should Isay people do business with people. Thus, ourpeople are our biggest assets. Our industry is for-tunate to have the quality of people that it has.

Going into the last half of this year, inventories willbe harder to come by but isn’t that a good situation to have? Fuel is still priced lower than ithas been, and some shippers are looking to findreliable truckers to deliver their goods. Sounds to me like Christmas is going to be fun. I know it will be for me because I have a new granddaughter and will have another grandson

in October. My childrensurely seem to be gettingold.

The Blue Book Seminar wasthis month and a had largeattendance. The UTA convention is also showingsigns of being the biggestever. Our thanks to thesponsors for signing upearly. Sue Dorso tells me we have a few golfholes still available.

This year’s agenda is chock full, and it will bevery worthwhile and fun. You medium duty dealers are in for a treat. For the first time, we willhave a session that will focus on the importanceof medium duty trucks in our marketplaces. I, for one, am ready to learn more about thatarea of our industry.

Once again, I say “THANK YOU” for your support of the UTA. To the UTA board, a special“THANK YOU” for your hard work in making thisorganization what it is today. As Fred Burton said:“Organizations are not machines with precisionparts. They involve people and relationships.”How true this is.

— Eddie WalkerUTA President

INSIDE THIS ISSUE2 Convention Sponsors2 Industry News Briefs3 Tentative Convention Agenda4 Membership Application5 Board News & Views6 Membership “Bounty”How are YOU supporting the UTA?

SHARE YOUR NEWSUTA Industry Watch is published monthly. Submissions,ideas and comments are most welcome. Contact:

David A. KolmanEditor - UTA Industry Watch18521 Brick Store RoadSuite 400Hampstead, MD 21074(877)-GETS-UTAfax: 410-374-9196e-mail: caboverkolman@yahoo.com

2 UTA Industry Watch June 2003

INDUSTRY NEWS BRIEFSCentral California Kenworth has opened a newfull-service branch at 3030 Ramada Drive, PasoRobles, CA (San Jose and Los Angeles); (805)239-2850. This brings Kenworth’s dealer networkto nearly 300 locations in the U.S. and Canada.

DesignTech International, Springfield, VA, hasdeveloped a vehicle Deer Alert system thatemits both ultrasonic sounds to warn off smallanimals and sonic sounds for deer, moose andother large animals. Unlike wind-activateddevices, the Deer Alert is installed in the enginecompartment, works at any speed, has a rangeof up to 2,000 feet and can be turned on or off.

Hino trucks will be produced for the first time inthe U.S. at Toyota’s Long Beach, CA, plant.

Jim Hebe, former trucking industry leader, and agroup of private investors, managed throughBallamor Capital Management, have acquiredthe assets of FWD Corp., which includes Seagrave Fire Apparatus, Clintonville, WI;Almonte Fire Trucks, Carleton Place, Ontario,Canada; Aerialscope Inc., Richmond, VA; Seagrave Sales & Service, South Plainfield, NJ,and Seagrave West, Rancho Dominguez, CA.

Kenworth Truck Co. has signed an agreementwith Heil to provide its full line of dump bodies,ranging from 8 to 21 feet. Customers will be ableto select the dump body when they place theirnew truck order with their Kenworth dealer.

Magnet Paints, Amityville, NY, has developed a

direct-to-rust chassis paintand underbody coatingthat reportedly can stoprust permanently. CalledChassis Saver, it requiresno primers or topcoatsand can be applieddirectly to rusted metalafter only a wire brushing. Applied using a brush or any spray equipment, Chassis Saverchemically bonds to rusted metal and is unaffected by road salts, chemicals, solvents,acids, fuel, etc.

Volvo Trucks has grown its dealer network in theU.S. and Canada to 240 locations, up from 197in June 2001.

Wabash National has created Wabash UsedTrailers to remarket used trailers. This new organization will have five regional centersacross North America, and each will offer trailermodification and repair services. Used trailerswill also be sold at Wabash’s 31 factory-ownedbranches. For details, phone 815-744-6433 orvisit www.wabashusedtrailers.com.

Western Star Trucks is expanding its dealer network, adding 70 new locations in the past 18months. Among the new locations: Baltimore,MD; Brooklyn, NY; Charleston, SC; Chicago, IL;Fontana, CA; Fort Worth, TX; Houston, TX; Lexington, VA; Oklahoma City, OK; Orlando, FL;Phoenix, AZ; Spokane, WA; Texarkana, TX; Tulsa, OK.

We acknowledge and thank the following companies that have already made a commitment to the 4th Annual UTA Convention:

AMERICAN TRUCKERBEST USED TRUCKS OF TEXASBLACK BOOK - NATIONAL AUTO RESEARCHCAG TRUCK CAPITALCATERPILLARCOBALT FINANCECUMMINS INC.DealersWIN.comFASTLINE PUBLICATIONSHEAVY DUTY MARKETINGHIGHLINE CAPITAL CORPORATIONHTAEW.COMINTERNATIONAL TRUCK & ENGINE CORP.INTERSAFE INC.INTERSTATE ON-LINE SOFTWARE (SOAAR)MACK TRUCKS INC.

MANHEIM TRUCK AUCTION - Fort Wayne & Fort WorthVehicle Auction

NATIONAL OFFICIAL COMMERCIAL TRUCK GUIDE/NADANATIONAL TRUCK PROTECTIONPETERBILT MOTORSPREMIUM 2000 WARRANTIESR.L. POLK & COMPANYRITCHIE BROS. AUCTIONEERSROADRANGER - EATON & DANA CORP.SELECTRUCKS OF CHARLOTTETAYLOR & MARTINTHE JEROME NERMAN FAMILY FOUNDATION - Wholesale

Trucks of AmericaTHE JEROME NERMAN FAMILY FOUNDATION - Best Used

Trucks of ColoradoTRUCK PAPERWHOLESALE TRUCKS OF AMERICA

Convention Sponsors

June 2003 UTA Industry Watch 3

- Start Making Your Plans To Attend -4th Annual UTA Convention

“Come Meet The Used Truck Industry”November 6-8, 2003

Palm Coast Golf ResortPalm Coast, Florida

TENTATIVE AGENDAWednesday, November 5, 2003

1:00 p.m. Board meeting6:00 p.m. Board/spouse dinnerEvening Meet & Greet - Cash bar and hors d’oeuvres in resort hotel bar for all

convention attendees

Thursday, November 6, 20038:00 a.m. Welcome Address - Convention Chairman8:15 a.m. State of the Association - President8:45 a.m. State of the Industry Address & Economic Forecast9:45 a.m. Break10:00 a.m. Sponsor Presentations11:30 a.m. Golfers depart for course11:30 a.m. Tour or Kayaking Adventure with Picnic12:30 p.m. Shotgun Golf Tournament6:30 p.m. Welcome Reception - Cocktails and buffet;

Sponsor Information Centers and raffle prize drawing

Friday, November 7, 20038:00 a.m. Opening Address - President8:05 a.m. Industry Leadership Forum & Panel Discussions10:00 a.m. Break10:20 a.m. Manufacturer Updates12:00 p.m. Lunch1:30 p.m. Keynote/Motivational Speaker3:30 p.m. Break3:45 p.m. “Think Tank” Roundtables6:30 p.m. Cocktail Reception7:30 p.m. Awards Dinner

Saturday, November 8, 20037:30-9:00 a.m. Farewell Breakfast9:00-11:00 a.m. New Board of Directors meeting12:00 p.m. “Putting for Scholars” - Charity Golf Tournament & Luncheon

for educational endowment fund

For additional information about the UTA’s 4th Annual Convention, please go online towww.uta.org or contact Justina, Shawnna, or Tiffany at 317-297-5500.

Sign UpNow Online ToReceive Your“Early Bird”Discountwww.uta.org

(optional event atadditonal cost)

Type of membership (check the one that applies):____ CORPORATE MEMBER: $300 ($350 dues minus $50 one time new member rebate)

Any business or company directly involved in used truck sales including: independent truck dealers; franchised truck dealers that maintain a legitimate used truck department/operation; truck renting andleasing companies that maintain a full-time used truck department/operation; trucking fleets that maintaina full-time used truck department/operation; truck auctions; etc.

____ SATELLITE MEMBER: $85 per each branch/location ($100 dues minus $15 one time new member rebate)A branch or satellite location of a Corporate Member.

____ ALLIED MEMBER: $300 ($350 dues minus $50 one time new member rebate)Any business, company or organization involved in the used truck industry including: manufacturers and suppliers of trucks and trailers, truck bodies, truck equipment, accessories, engines and components,and associated products and services; truck insurance businesses; trucking publications; truck financingbusinesses; etc.

____ SALES PROFESSIONAL MEMBER: $25An individual membership for a person whose company is a Corporate Member.

____ Allied Professional Member: $25An individual membership for a person whose company is an Allied Member.

For more information about the Used Truck Association, call 877-438-7882 or visit www.uta.org

UTA MEMBERSHIP APPLICATIONJoin the Used Truck Association

Sign up now and expand your sales networking!

To become a member of the UTA, complete this form and return it, along with the appropriate dues payment. Donot send cash. Fees are payable by Credit Card, Money Order or Check made payable to: Used Truck Association.Foreign members must remit dues in U.S. funds only. Full payment is required.

For branches, locations or additional memberships, please complete a separate application for each one orattach a sheet with the appropriate information.

Send To: Card Type: _______________________________________________

Justina Faulkner, UTA Secretary Card Number: ___________________________________________

P.O. Box 603 Expiration Date:__________________________________________Indianapolis, Indiana 46206

Signature: ________________________________________________

Name: ________________________________________________________________________________________________________

Title: ___________________________________________________________________________________________________________

Company:_____________________________________________________________________________________________________

Mailing Address: _______________________________________________________________________________________________

City, State, Zip/Postal Code: ____________________________________________________________________________________

Telephone:__________________________ Fax: _______________________________ E-Mail: _______________________________

Web Site: ______________________________________________________________________________________________________

Referred by:___________________________________________________________________________________________________

■■ I do not want my company listed on the UTA website.

SIGN UP NOW AND SAVE!

4 UTA Industry Watch June 2003

June 2003 UTA Industry Watch 5

BOARD NEWS & VIEWS

Marketing Your Dealership Is NotBrain Surgery But It Is Work

The first thing you need to decide when marketing your company is: What will be your benchmark for success?

Often, we start spending money on a marketing program without defining the number of truck saleswhich will determine if the marketing program is a success. Without a success benchmark, you setyourself up for constant review. With a clearly defined benchmark, you will be more prepared forthose “end of the month” sales meetings with the owner.

We must have an idea based on our past performance of what we expect the marketing programto do in terms of leads so we can project sales. To determine how much you’ll need to invest in theprogram you can work your sales formula but you need to know how many leads it takes to producea sale.

For example, if you need on average 10 leads to produce a truck sale, and your normal marketingprogram produces 10 leads a week, but you need to make two truck sales a week versus one in thenext quarter, you’ll need to increase your marketing investment to get your leads to 20 per week.

Your best bet to increase your call results is to expand what you’re investing in now rather than tryinga different unproven media. You’ll get a bigger bang for your buck going from a half-page ad to afull-page ad in the same publication that is proven successful, rather than spreading yourself too thinin too many venues. You need to dance with the date you came to the dance with (unless yourdate can’t dance.)

Next, you need to put your best foot forward in your ad. You can’t advertise your dogs and expectthe phone to keep ringing. Like the pet storeowner, you need to put your puppies in the window toget buyers in the store. If you don’t want your puppies to become dogs, you need to put a sense ofurgency in the ad. A sense of urgency can be conveyed in the ad by having a limited number ofspecial trucks or a limited time offer.

You need to market your entire dealership, not just a part of it. Your advertising should be a miniaturebrochure about your company, featuring your used trucks, as well as new equipment, fleet sales,leasing, parts, service, insurance, etc.

Keep the ad clean and easy to read. Sometimes, less information is better - it gives the buyer a reason to call you with questions. Also, an 800 number is always helpful. It does two things: increasecalls, and it helps track the calls coming in.

Once in a while, all our best made marketing plans can come out flat in the marketplace so wemust be continually learning and adapting our ads as we monitor the results. If we don’t track theresults, we not only can’t judge our current marketing plan’s value, we can’t make intelligent plansfor our future.

Here are the steps to a good marketing program.- Determine benchmark for success - Determine how much you need to spend - Put your best foot forward - Convey a sense of urgency - Make your ad a miniature brochure - KISS (Keep It Simple Stupid) - Track your results - Learn and adapt

If half of your advertising works and you don’t know which half, you’re burning twenty-dollar bills.Lee Chapin

UTA Board MemberTruck Paper

USED TRUCK ASSOCIATIONP.O. BOX 603INDIANAPOLIS, IN 46206

The UTA is continuing its “bounty” program to buildmembership. Under this program, a $50 referral feewill be paid for every new Corporate or Allied Member that a current member enrolls. Referrals willbe paid up to $599.99 - the limit capped by the IRS1099 requirements - at the annual convention.

A membership application can be found on page 4. Be sure to include your name, with thephrase “Referred By,” on the application to insurethat you receive your bounty.

– Quintessential Quote –“In every instance, we found that the best runcompanies stay as close to their customers ashumanly possible.”

Tom Peters, American business writer.

STAY IN TOUCH• Contact the UTA toll-free at:

1-877-GETS-UTA (1-877-438-7882).

• Visit the UTA’s website at: www.uta.org.

Building MembershipRemains High Priority WANTED

NewMembersREWARD