1. No category

March/April 2014
The Texas Automotive Recycling Report
TARA’S 2013/2014 BOARD OF DIRECTORS
Ronnie Patke, President
Parts Unlimited, Inc.
17511 Pearland Sites Rd.
Pearland, TX 77584
Phone: (281) 489-0990
Fax: (281) 489-3111
Cheryll Lambright, Executive Director
TARA
P.O. Box 842084
Houston, TX 77284-2084
Phone: (800) 710-8272
Fax: (713) 461-1515
James Cooley Jr., District 3 Director
Hi-Way Auto Parts
2808 Hwy. 279
Brownwood, TX 76801
Phone: (800) 447-0611
Fax: (325) 646-5332
Bruce Ormand, Vice President
A1 Partsmart
PO Box 17998
Austin, TX 78760
Phone: (512) 243-2718
Fax: (512) 243-2850
“Hotrod” Banks, District 1 Director
Box Auto Salvage
4209 E Highway 80
Midland, TX 79706
Phone: (432) 683-9200
Fax: (432) 683-2048
Randy Cunningham, District 4 Director
Pick-N-Pull
11795 Applewhite Rd.
San Antonio, TX 78224
Phone: (210) 628-1856
Fax:(210) 628-1194
Donnie Patke, Sec./Treasurer
Parts Unlimited, Inc.
17511 Pearland Sites Rd.
Pearland, TX 77584
Phone: (281) 489-0990
Fax: (281) 489-3111
Barry Rubin, District 2 Director
American Auto Salvage Inc.
2567 Decatur Ave.
Ft. Worth, TX 76107
Phone: (817) 335-3328
Fax: (817) 335-2711
Email: [email protected]
Joe Luna, District 5 Director
Nissan Unlimted/Y.E.S Unlimted
7230 Senate Ave.
Houston, TX 77065
Phone: (832) 467-4400
Fax: (832) 467-4402
Tim Straney, Past President
Glenn’s Auto & Truck Parts
P.O. Box 925508
Houston, TX 77292
Phone: (713) 688-8905
Fax: (713) 681-5169
Publisher
TARA retains the services of R.J. McClellan, Inc. Newsletter
advertising opportunity inquiries should be directed to:
R. J. McClellan, Inc.
445 Broadway Avenue #500
Ron McClellan
St. Paul Park, MN 55071
Advertising Sales
Phone: 651-458-0089
Sheila Cain
Toll Free: 877-525-4589
Managing Editor
Fax: 651-458-0125
Sheila Cain
Email: [email protected]
Layout & Design
Mike Kunkel, Director-at-Large
American Auto Salvage Inc.
2567 Decatur Ave.
Ft. Worth, TX 76107
Phone: (817) 335-3328
Fax: (817) 335-2711
Executive Director
Newsletter content and association membership
inquiries should be directed to:
Cheryll Lambright
TARA Executive Director
P.O. Box 842084
Houston, Texas 77284-2084
Phone: 800-710-TARA (8272)
Fax: 713-461-1515
Email: [email protected]
The Texas Automotive Recycling Report
The Texas Automotive Recycling Report is published six times per year for the Texas Automotive Recyclers Association. None of the material in this publication
necessarily reflects the opinion of TARA, its officers, directors, staff, members or its Publisher. Statements of fact and opinion are the responsibility of the author alone. Articles and letters suitable for publication will be published in the next scheduled newsletter as space permits. Articles may be edited for length.
Throughout this issue, trademarked names are used. Rather than place a trademark symbol in every occurrence of a trademarked name, we state we are
using the names only in an editorial fashion, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Mention of trade
names, commercial products, or techniques does not constitute endorsement or recommendation for use.
March/April 2014
4
ASSOCIATION NEWS
President’s Message
By Ronnie Patke
Relationships,
I believe
are a great
product
of our industry.
Talking to
many people during the day we start to build
relationships with them. Getting
to know them is bound to happen.
We have worked hard with our vendors, employees, insurance companies and customers to maintain that
relationship. We have gained lots
of friends in the industry and some
have turned into friendships outside
the industry.
I think with technology like
twitter, facebook and smart phones,
we are getting use to communicating through this type media. We
have to have our information right
now or questions have to be answered yesterday. We can’t wait
five minutes. The days of hotlines,
phone calls are being replaced by
computer searches, emails and auto
matches. We are losing our relationships for efficiency.
We have so many different
kinds of software and programs
now that send our data to the customer or the customer sends the
estimate to us. We also no longer
call vendor for parts. We do a parts
search and send an instant message or email. We no longer talk
each other. We click. We no longer
feed that relationship. We lose that
connection with them because we
just email and instant message each
other now.
We are starting to develop relationships with the software or
program instead of people. The
talk around the office is now “Hey
did you check your auto matches?”
“Did you email back the prices?”
We look up and wonder why we
have not heard from our customer
in a while. We are dependent to
the software or program. We as an
industry have let it happen.
We need to get back to those
phone calls and the lunch meetings
with our vendors and customers.
We should not rely on software or
programs. We need to start feeding
those relationships or we will fade
away in the mind of our vendors
and customers. We will no longer
have that relationship and the feeling between two people; we will
just be a program or software to
them.
March/April 2014
5
ASSOCIATION NEWS
A Letter From the Executive Director
By Cheryll Lambright
2014 is proving to be a fast
paced race to once again get
everything in order to follow
all the regulations required
of the automotive used parts
industry. I have listed below
two OSHA requirements and
information for state and federal workplace posters and
the earned income tax credit notification that is due
March 1, 2014. Check the TARA website www.texasara.com under forms to see information relating to
all these requirements or click on the provided links.
OSHA Reminders
FORM 300 is to be posted February 1, 2014. Every employer who is subject to OSHA and has more
than 10 employees is required to maintain records
relating to employee injuries and illness. This illness
and injury log must be kept on a form developed by
OSHA, known as Form 300. All thought the records
are generally not filed with OSHA, they must be maintained at the worksite for a five-year period and made
available to employees and OSHA inspectors. www.
osha.gov/recordkeeping/new-osha300form
HAZARD COMMUNICATION PROGRAM
Do your monthly Hazard Communication Training. More information on this monthly OSHA requirement can be found on TARA’s website at http://
texasara.com/forms.html . OSHA requires that you
have a monthly meeting and post them in a book. All
workplaces where employees are exposed to hazardous chemical must have a written plan which describes
how the standard will be implements in the facility. For
further information go to www.osha.gov.
Workplace Posters
Remember to bring current your state and federal
workplace posters. Below are two links to help you
decide what poster your business establishment is required to have. These posters can be printed at no
cost to employers.
FEDERAL. The federal Department of Labor has
an advisory link that will ask questions about your business so that you will know what federal posters you
need to post. These questions relate to number of employees, health insurance etc. The Advisory is designed
to help employers comply with the poster requirements
of several laws administered by the Department of Labor (DOL). These laws require employers to display official DOL posters where employees can readily observe
them. DOL provides the posters at no cost to employers.
The FirstStep Poster Advisor is one of a series of
elaws (Employment Laws Assistance for Workers and
Small Businesses) Advisors developed by the U.S.
Department of Labor (DOL) to help employers and
employees understand their rights and responsibilities
under federal employment laws. http://www.dol.gov/
elaws/posters.htm
STATE Workplace compliance posters required to
be displayed can vary from one employer to another.
Posters can be printed free of charge directly from links
on this page or by following links to the U.S. Department of Labor.
6
March/April 2014
ASSOCIATION NEWS
All Texas employers must display posters containing information on the Texas Payday Law, and the
following federal posters, the Workers’ Compensation
Program, the Uniformed Services Employment and
Reemployment Rights Act, the Fair Labor Standards
Act, the Employee Polygraph Protection Act, and the
Occupational Safety and Health Act. Employers liable
under the Texas Unemployment Compensation Act
must display a poster that includes information about
both unemployment compensation and the Texas
Payday Law. Also, every employer with 15 or more
employees, and smaller employers with federal grants
and contracts, must post the notice entitled “Equal Employment Opportunity Is the Law,” which contains information about the Equal Employment Opportunity/
Americans with Disabilities Act laws.
Employers do not need to purchase required posters from private vendors. Government-issued compliance posters do not have to be laminated to satisfy an
employer’s regulatory obligation. They can be printed
at no cost from the link below.
Employers needing additional information about
which posters they need to display can call TWC’s Labor Law unit at 800-832-9243 or 512-475-2670.
http://www.twc.state.tx.us/ui/lablaw/postersworkplace.html
Earned Income Tax Credit
Notification – March 1, 2014
Texas employers must notify their employees of
the federal Earned Income Tax Credit (EITC) no later
than March 1st of each year.
For purposes of the EITC notification requirement,
an employer is any person or business that employs
one or more employees, and an employee is an individual employed by an employer for compensation.
The EITC is a refundable federal income tax credit
for low to moderate income workers and families. If
EITC exceeds the amount of taxes owed, it results in
a tax refund to those who claim and qualify for the
credit. To get the credit, workers must meet certain
requirements and file a tax return, even if they don’t
owe any tax or are not required to file.
An employer may provide notice to its employees
in any of the following ways:
• In person
• Electronically at the employee’s last known
email address
• Through a flyer included with a pay stub (wage
statement), in paper or electronic form
• By first-class U.S. mail to the employee’s last
known address
http://www.twc.state.tx.us/customers/bemp/
earned-income-tax-credit-notification.html
Employers may use IRS Notice 797 or a written
statement with the same wording as IRS Notice 797
when notifying employees. IRSNotice 797 provides
employees with the basic information for EITC.
For more information from the Internal Revenue
Service, including additional materials in multiple languages for informing employees, see EITC Information
for Employers.
Enviro-Rack
The Enviro-Rack is the
first and only portable
fully self-contained
fluid removal system
on the market.
“Keeping It Off The Ground”
”
Auto Fluid Removal
and Dismantling
Station
Enviro-R
ack
SALE!
Call for
details.
Perfect
drain ra
ck fo
auto rec r the
ycle
and part r
s
dismantl
er!
We offer all steel tanks along with a grated catwalk for operator safety.
ety.
ety
allon
n
Underneath the catwalk is a 249-gallon catch pan and also a 360-gallon
N
tank to catch any spills. No
other system on the market
comes close to the Enviro-Rack.
This unit meets EPA and state
level regulations concerning
fluid removal. The Enviro-Rack
is totally air operated. There are
no gasoline or electric motors
that could create a spark. The
Enviro-Rack is a safe system
that offers complete fluid
Coupon good through April 30, 2014
removal in less than 5 minutes.
Vacuum System with every
Enviro-Rack purchase
All Enviro-Racks are made in America with American steel for American-sized cars!
� EQUIPMENT �
IRON PACK BALER
Remote control, automatic cycle. All
it takes is ONE minute to bale a car!
EXCAVATOR/IRON AX SHEAR PACKAGES
All shears feature 360° continuous rotation.
OTHER MACHINES AVAILABLE
SPECIAL RATES, BUY NOW!
UT
ASK ABO LE
PP
OUR GRA N!
SELECTIO
Wadley, Georgia
877-247-6629
Fax: 478-252-9030
Email: [email protected]
www.ironax.com
Over 4
5
Years’
Experi
ence!
March/April 2014
8
ASSOCIATION NEWS
TARA Legislative Update
By Bruce Ormand
Greetings once again to
everyone,
I pray the new year finds
everyone doing well. The
older I get, I think the less I
understand, but I am learning
to give thanks for each day as
it comes. Unfortunately, none
of us are able to get out of this
world without some kind of collateral damage. This
past Sunday I heard a sermon and the minster made a
statement that I hope to keep in my sight for this year.
His statement was that we needed to try and live life
above the (see level) meaning what we see with our
eyes. The old saying goes…… mom said never believe
anything you hear and only half what you see. The one
thing that I have learned in the past 6 years of being
the legislative director is that persistence is a great ally.
On the Attack!
DPS
The president of the Recycling Council of Texas
and I met with DPS leaders to try and help both metal
recyclers and used auto part recyclers find a common
language of guidelines to help better the DPS’s inspection process. Many times there are differences in interpretations of the law so we are working on a Q&A to
be posted on the DPS website to help the industries to
have best management practices. We look forward to a
growing our relationship with DPS in the future to best
help each other to accomplish our goals.
TxDMV
The saga of the VTR-203 continues still. All of the
TxDMV people that we have dealt with (have left the
building) in the past are gone. I am starting to fear that it is
cursed and all that dare discuss it are somehow adversely
affected. (LOL) Anyway I was fortunate enough to have
a meeting with the executive director of TxDMV and
several directors, as well as one of the commissioners, to
open up this topic as well as several others that TARA is
concerned about. TARA is committed to our agenda issues. The issues that can’t be addressed by rule making
will have to be taken to the legislature in 2015.
PAC
The importance of having a HEALTHY TARA PAC
to start using NOW to prepare for 2015, cannot be
overlooked or overstated. TARA can’t afford to waste
anymore time on dialogue that does not produce results and With your PAC donations, it is our plan to
put the pedal to the metal to get quicker results than in
past negotiations. Many of the issues have been kicked
around since 2011 and have unfortunately been left to
March/April 2014
9
ASSOCIATION NEWS
languish on a nowhere path by the
TxDMV.
I want to take this time to thank
everyone that has contributed so far
to the PAC. Without your help, what
TARA does is not possible. I know
that it is hard to see what is going on
behind the scenes but unfortunately
much of the information that we are
dealing with has to be withheld until
negotiations are accomplished with
all affected parties. I will tell you, if
anyone ever has questions or would
like more details feel free to call me
and I will be glad to discuss any concerns that you may have.
Report
Unlicensed
Used
Automotive
Parts Recyclers
TARA will report
your complaint for
any UAPR business
that you believe is
operating without a
TDLR license
Send the business
name and the
address to:
txautorecycles@
gmail.com
800-710-8272
BECOME A TARA PAC-RAT!
LET’S STORE AWAY MONEY
FOR OUR PAC FUND!
Help us reach our goal of $30,000.00
dollars needed by May 2014.
Last session, TARA was able to get
ahead of Goodyear and Liberty Tire -only because they underestimated our
determination and we took them by
surprise. They know who we are now and
the next session they will have us in their
sights. Money talks and we will need at
least $30,000 in talking money!!!!
PLEASE COMMIT TODAY!
If every member donates just $25/month,
we will exceed our goal.
Name:____________________________________________________
Company: ________________________________________________
Address: __________________________________________________
Phone: ___________________________________________________
Fax: ______________________________________________________
Email: ____________________________________________________
r Enclosed is my personal check, (no business checks please) made
payable to TARA PAC in the amount of $________________.
Mail to: TARA PAC, PO BOX 842084, HOUSTON, TX 77284
OR
r Bill my personal credit card, the amount of $________________.
Name on CC: _____________________________________________
CC #: ____________________________________________________
Exp Date: _______________ CVC _______________
Billing address: ___________________________________________
_________________________________________________________
_________________________________________________________
*r I would like a monthly PAC RAT reminder to make a donation of
$25.00 each month.
TARA, PO Box 842084, Houston, TX 77284
Phone: (800) 710-8272 • Fax: (713) 461-1515
Email: [email protected]
10
March/April 2014
ASSOCIATION NEWS
The 8 Concerns of Buyers
By Mike Kunkel
Recently, I was reading an article by Jeff Beals.
(www.jeffbeals.com)
In Jeff’s sales blast from
1/24/2014; he lists 8 concerns that buyers have.
1. Saves money
2. Makes money
3. Reduces stress
4. Saves time
5. Is easy to use
6. Provides security
7. Boosts ego
8. Makes them feel good about themselves
It is a short read and I thought that there were only
a few of these items that apply to the selling of used
auto parts. However, Jeff is an award winning speaker
and author and tends to know what he is talking about.
I printed the article and thought I would make some
notes and find some examples to see if and how each
of these 8 items applies to our industry.
The first item is a no-brainer. Our parts are cheaper
than OE and aftermarket and that is something that we
spend a lot of time and effort making sure people know
that and think of a used part when they need an auto part.
The ability to make money or more money by using a used part is cloudy, based on who you are talking
too. In most industries, the lower the buying price is,
the more potential there is for profit. The mechanical
shops we deal with have that potential. They can take
our selling price and put whatever amount of markup
or profit when they price the job to their customer. The
same holds true when dealing with a customer pay in a
body shop. The insurance repairs are the ones that the
body shop feels do not make him money. This comes
down to the difference between a discount off of list
price and a markup based on cost. The discount on list
price tends to give the shop more gross profit dollars
which increases their reluctance to use a used part.
Do the parts we supply reduce the amount of
stress they have. That comes down to the vendor that
they are using. One of the most common stress reducers is extended and labor warranties. It is not a
pleasant conversation with the shops customer when
they are trying to get them to pay for a second repair
on a failed part. Not having to deal with that can be
a huge stress reliever. A few other things that can add
or subtract from the fears (stress) of using our product
are credit / return policies and damage adjustments. In
other words, how easy does the customer view you as
being? Are you providing a positive buying experience
or creating fear of potential problems.
Time could be considered one of our biggest obstacles while at the same time being one of our strengths.
One of the primary functions of our yard management
systems is to help us know what parts we should have
on the shelf ready for sale. This is the only time that
we have the ability to match the part prep time of OE
or aftermarket suppliers. Pulling a box off of the shelf
is always going to be faster than pulling a part off of the
vehicle. This extra time can be and often is blamed on
hurting cycle time. There are a lot of examples of time
savings by using used parts. Assemblies are very common in our industry than are not an even comparison
with OE or aftermarket parts. In the end, the time constraints can be overcome if both parties are honest with
when the part is needed / can be delivered. If done correctly, a used part can play a significant role in improving
cycle time. On the mechanical and retail sides of our
business, the extras that are included with what we sell
March/April 2014
11
ASSOCIATION NEWS
save a tremendous amount of time and labor for them.
Switches and relays on engines are a good example of
this. While we do not guaranty those items, we all know
they are not switching them unless there is a problem.
One of the complaints we heard about our industry was that we were hard to get a hold of. That could
not be further from the truth now. We have local, toll
free and cell phone numbers. If you prefer electronic
methods, we have email, instant message and on line
access to our inventory. I would define that as easy
to use, assuming each method is met with the proper
attitude.
What kind of security do we provide? We start
with a warranty on our parts with many of us offering
extended warranties. In addition to that, we are selling
an OE part. This is the same part that the dealership is
going to deliver and it has a comparable warranty on it.
No matter how hard I have tried, other than blowing up airbags, there is not a lot cool and sexy about
what we do. That might leave us a bit short in the ego
boosting department in the traditional sense. What is a
bigger ego boost than dictating the price of a part? We
know that the bulk of our inventory is not price sensitive and the customer will price it at a number that you
can live with. Think about how good you would feel
it you went into the grocery store and told them how
much you were going to pay for the gallon of milk.
Following up with the customer after the purchase
lets them know you were genuinely concerned with
their needs and how you filled them. This reassures
them they made the correct choice in buying from you
and warrant them buying more from you.
Jeff Beal has pointed out that some basic elements
of selling are universal. The process that leaves the
customer with a warm and fuzzy feeling and you with
the sale interchanges regardless of industry. We aim to
give a positive buying experience for everyone which
allows our industry to continue to become more main
stream. This isn’t Grandpa’s junkyard anymore!
MEMBERSHIP APPLICATION
for
Texas Automotive Recyclers Association
The undersigned hereby applies for membership in the Texas Automotive
Recyclers Association and agrees to be bound by its bylaws accordingly. ByLaws are available at www.texasara.com.
(PLEASE PRINT)
Date:_______________________________________
PRIMARY Business Name:_______________________________________________________________________________
Address: ________________________________________________________________________________________________
City:____________________________________ County:______________________ State:_________ ZIP Code:_____________
Business Phone: (_______ )______________________________FAX:(______ )_____________________________________
E-Mail:_________________________________________________Web site: __________________________________________
Company Owner/Manager: __________________________________ Title: __________________________________________
TDLR Used Auto Parts Recycler’s License No:_______________TCEQ Storm Water Permit No: ________________________
Specify Company Type: r Sole Proprietorship________________________ r Partnership/Type_______________________
r Corporation/Type__________________________ r Other_________________________________
ADDITIONAL Business Name:____________________________________________________________________________
Address: ________________________________________________________________________________________________
City:____________________________________ County:______________________ State:_________ ZIP Code:_____________
Business Phone: (_______ )______________________________FAX:(______ )_____________________________________
E-Mail:_________________________________________________Web site: __________________________________________
Company Owner/Manager: __________________________________ Title: __________________________________________
TDLR Used Auto Parts Recycler’s License No:_______________TCEQ Storm Water Permit No: ________________________
Please attach information for all additional yards
Please indicate category below:
r Direct Primary Member $325.00 per year
r Associate Member $325.00 per year
r Additional Yard(s) - $100.00 per yard/per year
r Affiliate Member $325.00 per year
Please attach information for all additional yards
Payment Information
r Check Enclosed (payable to TARA)
r Automatic Monthly Credit Card Payment: $28.50 per month (Payment includes a $1.42 a monthly credit card
processing fee for a total of $342 annually. Charges will continue on a monthly basis and membership will automatically renew unless written notice of cancellation is received 30 days prior to monthly charge.)
r MasterCard
r Visa
r Discover
r American Express
Card #_______________________________________ Verification Code:______________Expiration Date ____________
PRINT Name of Cardholder ___________________________________________________________________________
Signature of Cardholder_______________________________________________________________________________
Address: (If different than above address) _______________________________________________________________
___________________________________________________________________________________________________
Return to: TARA • c/o Cheryll Lambright • PO Box 842084 • Houston, TX 77284-2084
[email protected] • TEL: 800-710-8272 • FAX: 713-461-1515
March/April 2014
13
ASSOCIATION NEWS
Being A TARA
Member
Has Its
Benefits!
4 Legislative Power
4 Industry Information
4Connectivity
4 Annual Conference
4 Education Sessions
4 TARA Report
Newsletter
4 Biz Unite Discounts
Become part of a
progressive and strong
organization.
Join your friends and
be a member!
TARA
Tel: 800-710-8272
Fax 713-461-1515
[email protected]
www.texasara.com
CASH FOR YOUR CAR
NO TITLE NO PROBLEM
Stop the
illegal selling
of cars !!
Help TARA expose
these operators
Send copy of ads or provide info to:
[email protected]
TARA is partnering with
a state agency to regulate
the enforcement of this
activity.
14
March/April 2014
ASSOCIATION NEWS
TXDMV to be Fully Integrated in with NMVTIS
by April 2014
The TxDMV is pleased to announce that we plan
to be fully integrated in the National Motor Vehicle Title Information System (NMVTIS) in April 2014. This
is when the TxDMV will begin running Texas Title applications through NMVTIS, as required by federal law.
NMVTIS is a national consumer protection database that provides title information from states across
the country.
We want to begin making consumers aware of the
importance of using NMVTIS before they buy a used
vehicle and have redesigned the Title Check pages on
our website to allow buyers to connect to the NMVTIS
approved providers.
When we first introduced Title Check, you could
only check the most recent Texas title record. While
this service was free, it only searched Texas title records and did not provide any out-of-state title information for the vehicle. As a result, an inquiry into
the previous Title Check may have indicated a clean
vehicle record, even though a more recent title record
existed in another state showing that vehicle with a
value-limiting brand not reflected on the Texas title
record. By not being able to search all title records,
the old Title Check could lead to a false sense of security when purchasing a vehcle.
Title Check will now connect you to the approved
title information providers. Users will pay a small fee,
but they will receive a more complete and accurate
title history from the NMVTIS database that contains
information from states across the country. This is the
March/April 2014
15
ASSOCIATION NEWS
same database the TxDMV will begin using in April
when issuing a Texas title.
The best way consumers can protect themselves
from any surprises when they go to title a vehicle is to
connect to Title Check and use one of the approved
title information providers before making a purchase.
Any assistance you can provide to begin encouraging
customers to use Title Check would be appreciated.
You can find Title Check by using the icon on the
TxDMV website’s homepage, www.txdmv.gov, or going directly to www.txdmv.gov/title-check.
The Title Check page features two tabs, “For Consumers & Businesses” and “For Dealers Only.” Please note
there are different providers under each of these tabs, and
those providers listed under the “For Dealers Only” tab
are reserved exclusively for car dealer use. However, all
other businesses, such as financial institutions, can use the
providers under the “For Consumers & Businesses” tab.
The TxDMV will not be able to provide NMVTIS
information to individuals in a manner other than
through the TxDMV’s Title Check webpage. Inquiries
to the TxDMV’s Consumer Relations Division regarding title information or NMVTIS inquiries will be directed to use the Title Check webpage or complete
a Request for Texas Motor Vehicle Information, Form
VTR-275. However, use of the Form VTR-275 will
only provide Texas title information and will not include the out of state title history information available
through Title Check.
The approved providers of the NMVTIS Vehicle
History Reports are authorized by the U.S. Department
of Justice (DOJ). The American Association of Motor Vehicle Administrators (AAMVA) administers NMVTIS for
the DOJ. TxDMV is required to participate in NMVTIS
as part of the Federal Anti Car Theft Act of 1992.
For more information on the National Motor Vehicle Title Information System, please visit the NMVTIS
website at http://www.vehiclehistory.gov/.
Randy Elliston, Director
Vehicle Titles and Registration Division
Texas Department of Motor Vehicles
ASSOCIATE MEMBERS
American Cat Con, Inc.
Hollander, A Solera Company
Neely, Craig & Walton, LLP
Auction Systems of Amarillo
Insurance Auto Auction
Recyclers Power Source
Phone: (708) 492-7000
Phone: (800) 336-5614
Auto Data Direct, Inc.
James Environmental
Rio Battery Company
Phone: (512) 244-3631
Phone: (210) 225-4746
Bishop International
Kabele Truck & Auto Parts
Salvage Direct - Houston
Phone: 800-225-6908
Phone: (814) 758-7975
Lamb Fuels, Inc.
Waymer & Associates Insurance
Agency
Phone: (713) 295-4659
Phone: (806) 622-1322
Phone: (512) 281-6867
Phone: (214) 426-6449
Brock Supply Co.
Phone: (800) 825-0644, Ext. 2449
Phone: (800) 528-4400
Phone: (619) 421-0805
Car-Part.com
Legend Smelting and Recycling, Inc.
Phone: (859) 344-1925
Phone: (800) 697-5556
Eagle Auction Pool
LKQ Corporation
Phone: (409) 866-0700
Phone: (806) 376-6301
800-447-5152
Government Affairs
Phone: (954) 492-9092
Be sure to consider our associate members first for your business needs. Visit our website for full contact information www.texasara.com
Report Unlicensed Recyclers!
File a Complaint with TDLR at: https://www.license.state.tx.us/Complaints/
16
March/April 2014
ASSOCIATION NEWS
Cash Flow Crisis or Sales Slump Solutions to
Solve the Problem
Slow sales seem to become a cash flow crisis rather
quickly these days. After weathering the great recession,
auto salvage businesses are still waiting for the sales volume to return to “normal” or at least predictable levels.
New car sales are said to back on track, which should
in turn create an inventory of trade-ins which should
stimulate used car sales and thus force buyers to either
scrap out project cars or seek used parts for repairs.
But waiting for the trickledown effect can bring about a
cash flow crisis. When researching solutions to the sales
slump problem, the common denominator seems to
be (of course) reduce cost and increase sales, high school
economics class all over again. But maybe a bit more
innovation is required in the new millennium.
Reconnecting with existing customers in a meaningful way also emerged as a central tactic. In our industry
we may have become accustom to reduced sales from
reliable clients as their business was also slow. Since our
products are “downstream” it may be time to re-engage
and make a sales call or set lunch meeting with a longtime
customer who hopefully is seeing an uptick in repair work.
Address pricing issues in two ways, first run sales
or promotions and second raise your prices. My research
showed that despite the constant complaints about the
price of normal goods such as milk, bread, clothes and
gasoline many small business owners have not significantly reviewed their own pricing structures even when
their suppliers have increased the cost of goods.
Leverage assets to keep your business ready to
do business. This tactic came down to two schools of
thought, either sell some assets to create cash flow or
leverage assets through borrowing if the slump seems
short term. Most likely our auto salvage facilities have
already done this or “sold off their scrap metal to make
payroll” a quote I only wish I could attribute to just
one speaker! Below are excerpts from the three best
sources I used to compile this information. The citation
are also given in case you are intrigued enough to seek
more advice from these experts.
Ways to Increase Cash Flow1
Ebbs and flows in sales should be expected in any
industry sector. Most business owners can account for
cyclical nature of sales including the high volume sales
we enjoy following a snow storm or widespread hail
damage and the slow sales seen in recent months from
the recovered new car sales. “But, in some cases, a decrease in sales can hit a company unprepared, which
can have a big impact on its cash flow.” 1
Author Dave Donovan wrote an article for Dun &
Bradstreet recently that has some broad but applicable
advice for ways to increase cash flow.
“Here are five ways you can quickly increase cash
flow when you need it most.” 1
#1 – Hold a Sale or a Special Promotion 1
Sales and special promotions are a one way to increase your cash flow quickly. This not only increases
your sales volume, but it can also introduce your company to a wider audience. These limited-time offers do
not have to break the bank in advertising cost with the
use of social media and electronic communications.
Announce the sale on your social media and send out
emails to existing customers. Promote it early and often
so your customers pay attention to the sale’s deadline.
You want to drive home the urgency of the deal.
#2 – Use Business Debt Smartly 1
While so many consider accruing business debt a
bad thing, it can actually help cash flow needs. “If you
are sure that your sales slump is temporary, or you are
experiencing an expected seasonal slump, then taking
out a small-business loan or falling back on your business credit cards can help offset your sluggish cash flow
until sales pick back up again. The key is to resolve the
debt you accrue once the sales pick up. As long as you
do that, your business credit and its debt should be just
fine.”1
March/April 2014
17
ASSOCIATION NEWS
#3 – Incorporate More Package Deals1
“Consider incorporating package deals to make
them more attractive and cost-effective for your customers. For instance, bundle together some of your topselling products and offer them at a discount price.”1
#4 – Sell Off Unused Assets 1
If your company recently underwent a technology refresh or large equipment upgrades and has some
excess inventory of assets, then selling the equipment
through a reputable equipment broker can help increase cash flow. This doesn’t have to include equipment that has been replaced like computers and loaders but also assets that are no longer useful. Look for
buyers that are perhaps at the phase of development
you were when you used the equipment the most. “If
you have equipment that aren’t playing an active role
in your business, then selling them could bring in the
funds you need to get by.”1
#5 – Raise Your Prices 1
“If your sales aren’t in a slump but you are still having a hard time managing your cash flow, then it might
be time to increase your prices. Of course, how you
increase prices is important to protecting your reputation. Before you raise them, notify your existing clients
or customers that as of a certain upcoming date, your
prices will be raised and explain why..”1
“Give them a chance to renew their contracts at
current pricing levels or a specific discount for a period of time before the increase goes into effect, or offer them the chance to stock up on supplies while the
prices are still low. Raising your prices in this way will
help maintain your business reputation with your customers while also working to effectively increase cash
flow over the short- and long-term..”1
1
http://creditsolutions.dnb.com/small-businessissues/five-easy-ways-to-increase-cash-flow/
In a recent article 2 entrepreneurs from the
Young Entrepreneur Council were asked:
“What’s one strategy you used successfully this year
to get through a cash flow slump?”
Strategies for Surviving a Cash
Flow Slump2
1. Eliminate Unnecessary Expenses
“How many $9.99 per month subscriptions do you
have for technology products that also offer free versions?
Comb through the bank statements, identify the reoccurring expenses that don’t drive value and eliminate them.“
~ Brett Farmiloe, Internet Marketing Company
2. Re-Engage Customers
“75 percent of your customers stop doing business
with you because you have ignored them not because
they are unhappy with your product or service. By simply
reaching out to your disengaged customer base with a
compelling offer, you should see an instant surge in sales
and cash flow.” ~ Charles Gaudet, Predictable Profits
3. Consolidate Vendors
“We earned considerable discounts by consolidating all of our purchases through a single vendor and
buying at higher volume. We now look to bundle
whenever possible and not just for bread-and-butter
items (we’ve even bought headsets in bulk).” ~ Sam
Saxton, Salter Spiral Stair and Mylen Stairs
4. Restructure Salaries
“If your startup is experiencing a cash flow slump,
consider restructuring salaries to be a lower base with
a higher bonus or commission payout. By making bonuses attractive at a profitable company, you will incentivize your employees to meet goals, focus on the
company’s success and decrease your expenses.” ~
Adam Root, Hiplogiq
5. Include Side Projects
“I’m not a big fan of deterring focus, but I found that
we had an easier time picking up occasional side projects
for extra cash than pitching investors. Our company is
generating revenue, so these small amounts of extra revenue made a big difference and enabled us to get through
tough periods without layoffs.” ~ Carlo Cisco, FoodFan
6. Ask for Up-Front Payments
“We used to require our customers to pay in full
after we completed our party rental services. Then one
day, someone suggested that since our products were so
popular, we ask for the full payment up front. We barely
noticed a difference in orders coming in and now have a
March/April 2014
18
ASSOCIATION NEWS
steady flow of cash to invest in new
products.” ~ Robert De Los Santos,
Sky High Party Rentals
Understanding Your
Sales Cycle and Pricing3
Review the time it takes to
complete each selling stage — from
prospecting, setting an appointment, qualifying the lead, making
the presentation, addressing objections, closing the sale to asking for
referrals.
Use this timeline as a benchmark to gauge where you can shorten the lead time and close the sale
a bit quicker. Qualify a lead more
quickly by refining your lead generation tactics to group similar sales
leads that can benefit from one process change or the same obstacle for
the entire group.
Next take a look at your pricing strategy. If the price of delivering the part doesn’t equate to the
effort spent closing the sale, your
pricing model is off. Selling a $100
part should not be exhausting. Not
only does accurate pricing make
your sales process worthwhile, it
prequalifies clients who have a willingness to pay, will actually pay and
truly value your service.
1. http://creditsolutions.dnb.com/small-business-issues/five-easy-ways-to-increase-cash-flow/
2. http://smallbiztrends.com/2013/12/10-strategies-surviving-cash-flow-slump.
html
3. http://yfsmagazine.com/2013/01/01/sales-slumps-how-to-prevent-a-cashflow-crisis-through-diversification/#ixzz2pvz0FcXm
Why Diversification
is Important3
The next task on your list is
Diversification. Think about diversification in financial terms. Diversifying investments lowers your risk
and provides better returns. If you
buy into the idea of a diversified
portfolio, it should be a no-brainer
to diversify your business.
Why risk a cash flow crisis by
depending purely on clients walking through your door? Diversify
your time by establishing multiple
revenue streams. Develop some
“packages” that your clients can
benefit from. The wholesale market is one way of targeting your
peers as another revenue stream
that builds upon your credibility
as a provider of quality parts. Diversification is essential in business
because it leads to scale. And when
you scale, you lessen your risk even
further. Setting up multiple streams
of income eliminates your financial
dependence on client work, and it
is a sign that you have just regained
control of your business.
TARA0314
The Texas Automotive Recycling Report
RJ McClellan, Inc.
445 Broadway Avenue #5
St. Paul Park, MN 55071
Change Service Requested
PRESORTED
STANDARD
U.S. POSTAGE
PAID
Twin Cities, MN
Permit No. 7911