NOVEMBER 2016 TireReview.com

To Do: • Purchase equipment • Employee reviews • Shop for health insurance • Explore Mobile payments

BUSINESS PLANNER & PURCHASING GUIDE

NOVEMBER 2016 VOLUME 116 NUMBER 11 04 n NEWS & COMMENTARY 04 In Perspective Exploring Your Options 08 Newsmakers Goodyear Christens New Blimp 12 SEMA/GTE News 16 First Look Continental ExtremeContact Sport 20 On-Site Hankook Technodome 22 n BUSINESS 22 Market Pricing 24 Ensanity Eavesdropping Strategy 12 16 30 In the Shop Dealer Success 72 34 n THE PURCHASING GUIDE / BUSINESS PLANNER 34 Mobile Payments 36 Purchasing Equipment 40 Incentivizing Your Team 44 Shopping for Health Insurance 46 Conducting Performance Reviews 58 52 New Products

34 58 n Purchasing Guide 58 TPMS Winter Tires and TPMS 64 n SERVICE 64 Vehicle Service Loaded Calipers 72 n FEATURES 72 Proud to Be an Independent Dealer

68 Commerce Connect

2 TIREREVIEW.COM • NOVEMBER 2016 CONTENTS

IN PERSPECTIVE Exploring Your Options Independent vs. independently owned

OME SAY THE PROVERBIAL DARK CLOUDS are forming on the horizon, heading this way fast. Consolidation within the industry, manufacturers selling direct and/or online, shrinking profit margins, rising employment costs, a shift toward digital, competition from big box stores and dealers – I could go on. The combined perfect Sstorm of pressure upon the existing small business model for independent tire shops is forcing an evolution within the marketplace.

All of this begs the question: Is it even possible for an independent tire dealer to remain “independent” and thrive in this environment? And more importantly, how can you position your business to best compete and prosper? Last month we honored Lex Brodie’s Tire, Brake & Service Co. as our Tire Review Top Shop Winner. The Hawaiian-based business is literally an island unto itself, building its business without the support of warehouses, dealer groups and marketing partnerships. They focus their resources, prioritize and make it happen – from their service philosophy (turning away or referring out work that isn’t in their sweet spot much like a medical doctor would) to marketing within their communities and online – the team remains open to its own evolution to best manage the changes within the marketplace. But many shops may not be willing to (or have the resources to) commit to the shift necessary to manage the trends within their own organization – especially when there are other options open to them, such as joining a franchise, dealer marketing network, co-op or other form of partnership. For some it makes sense to take an easier path, to hunker down during the storm, seeking protection in the strength of a larger network. Sure it sounds great, but is it worth the price? And is it worth trading off some of your independence? I recently spent some time with the good team at Big O Tires, part of TBC. The franchise group currently has 387 franchisee-owned locations in 20 states as it continues to grow its North American footprint. For about the price of what it costs for an experienced full-time marketing staffer, you get yourself a bevy of resources to help grow your location, from digital marketing and SEO to coupons and in-store promotions. They also provide updated product pricing and promotions on your/their website, continuing education, regional dealer groups, buying power, recognition within the marketplace and more. But all of this comes at a price. Taking your family name (or existing business name) off the side of the building and replacing it with a Big O Tires sign can be gut wrenching for some. And it’s never easy to release control, having to accept the practices and policies made by people in a corporate office somewhere. Even though you “own” it, the internal struggle remains between pure independence vs. strength in numbers. Even so, auto service franchises including tire stores are an attractive option to people just getting started in the business, taking years off the learning curve, and for investors looking to diversify by owning a stable, profitable business model. Even as some shop owners struggle

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with the perceived negative market • Will your business be able to stand part of a collective, without the support of pressures, outsiders coming into the out in your area or do you become outside affiliation? business see opportunities – especially one of many who are part of the My answer is Yes. But regardless as consumers are keeping their vehicles same program (like when someone of the path you choose – to go it alone longer, requiring tire replacement as searches “tire stores” on Yelp or on or to join a franchise, partnership, well as ongoing vehicle maintenance their mobile phone)? network, etc. – all require you to and service. Compared to other make an increased investment, focus industries, it’s not a bad place to be. • Do the benefits of consistent and commitment to your operation’s Shops run by numbers people with marketing, time-tested processes, success. After all, you should do more limited in-bay experience can be very buying power and support services than survive the storm – the real goal successful, which makes a turn-key outweigh giving up control of should be to have the winds of change business model even more appealing. certain aspects of your operations? propel your business toward real If you’re considering buying in (or prosperity and sunny skies ahead. selling out, depending on who you talk • Are you comfortable with a to), some questions to ask yourself: shift from “independent” to To your success, “independently owned”? • Are the brand requirements and expectations in line with the way Of course, in addition to franchises you prefer to operate? there are other partner models that could make sense, depending on your • Will you miss having your historic business needs and goals. PATTI RENNER business name on the sign? This takes me back to my initial Editor question: Can you survive without being

Publisher Associate Editor Contributing Editors Sr. Circulation Specialist Randy Loeser, ext. 285 Carley Hull, ext. 270 Steve Ferrante, Rich Star Mackey, ext. 242 [email protected] [email protected] Ashley, Tim Good, Jeff [email protected] Editor Senior Contributing Editor Wallick, Susan Bassford Advertising Services Wilson, Roger McManus, tirereview.com Patti Renner, ext. 247 Denise Koeth Christine Perry, ext. 245 3550 Embassy Parkway [email protected] [email protected] Andrew Markel [email protected] Akron, OH 44333-8318 330-670-1234 Managing Editor Art Director Kristen Criswell, ext. 273 RJ Pooch, ext. 246 [email protected] [email protected]

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Statement of Ownership, Management and Circulation (Act of August 12, 1970; Section 3685. Title 39. United States Code.) TIRE REVIEW is published monthly at 3550 Embassy Parkway, Akron, Ohio 44333. Headquarters and general business offices are also at 3550 Embassy Parkway, Akron, Ohio 44333. The publisher of TIRE REVIEW is Randy Loeser, the editor is Patti Renner and the managing editor is Kristen Criswell. The staff is located at 3550 Embassy Parkway, Akron, Ohio 44333. TIRE REVIEW is owned by William E. Babcox, located at 3550 Embassy Pkwy., Akron, Ohio 44333. Known bondholders, mortgagees and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: none. Issue date for circulation below: August 2016 Extent and nature of circulation is: Average no. copies each issue Actual no. copies of single issue during preceding 12 months nearest to filing date

A. Total Number of Copies 33,802 33,754 B. Paid and/or Requested Circulation 1. Paid/Requested Outside-County Mail Subscriptions Stated on Form 3541 28,271 28,138 3. Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution 0 0 C. Total Paid and/or Requested Circulation 28,271 28,138 D. Non Requested Distribution 1. Outside County Nonrequested Copies 4,979 5,005 4. Nonrequested Copies Distributed Outside the Mail 176 261 E. Total Free Distribution 5,155 5,266 F. Total Distribution 33,426 33,404 G. Copies not Distributed 376 350 H. Total 33,802 33,754 I. Percent Paid and/or Requested Circulation 84.6% 84.2% I certify that the statements made by me above are correct and complete. Pat Robinson, Circulation Manager October 15, 2016

6 TIREREVIEW.COM • NOVEMBER 2016

N NEWS:NEWSMAKERS Goodyear Christens Wingfoot Two

A little bit of cold and rain couldn’t stop the festivities at the Goodyear Tire & Rubber Co.’s Suffield, Ohio, blimp hangar on Oct. 21, as the tiremaker christened the latest member of its blimp family – Wingfoot Two. Christening Wingfoot Two, and getting drenched with Champagne at the same time, was Akron-native and philanthropist Savannah James. “I feel absolutely honored to be a part of this christening,” said James. “With Goodyear being so much a part of Akron and our (LeBron James Family) Foundation always wanting to better our community, I feel like it is a perfect match. Goodyear means so much to our community, and we feel a sense of gratitude to be part of this amazing event.” James, who is married to Cleveland Cavaliers star LeBron James, was chosen to christen the blimp based on her ties to the Also at attendance at the ceremony was Robin Roberts, co- Akron community. anchor of ABC’s “Good Morning America.” Roberts, who christened “Savannah’s Akron-born roots and passion for improving the Wingfoot One, passed the christening duties to James, bringing the local community made her a natural choice to christen Wingfoot Champagne bottle with her. Two,” said Richard J. Kramer, Goodyear chairman, CEO and Over the years several different women have christened the fleet president. “Goodyear has a long-standing tradition of enlisting of Goodyear blimps including Amelia Earhart (1929), astronaut Dr. strong, accomplished women to christen our iconic airships, and we Sally Ride (2000) and president of International Speedway Corp. are proud to welcome Savannah to the family.” Lesa France Kennedy (2006). TR

n DOC ERROR LEADS TO n CRUM LEAVES merchandising operations at Best Buy. HIGHER TRUCK TIRE TARIFFS RETAIL OP, NEW COO PROMOTED BSRO operates more than 2,200 tire The Department of Commerce has issued Stu Crum, Bridgestone Retail Operation’s and automotive service centers nationwide correction to its preliminary anti-dumping president, has left the company for new under the Firestone Complete Auto Care, duty determination for medium truck tires opportunities. Tires Plus, Hibdon Tires Plus and produced in China. Crum now serve as chief operating Works brands. The DOC is correcting two “significant officer for Service King Collision Repair ministerial errors,” leading to greater tariffs Centers. n TWO SENTENCED FOR for every manufacturer and importer. For the interim, Damien Harmon will STEALING FROM GOODYEAR Due to an error made in the calculation serve as president of BSRO. Harmon, Two Chinese nationals were sentenced to of estimated weighted-average for Prinx who previously served as vice president more than two years in prison for defraud- Chengshan (Shandong) Tire Co. (PCT), the of operations, was also promoted to chief ing Goodyear & Tire Rubber Co. out of $1.5 tiremaker’s anti-dumping rate grew from operating officer of BSRO. million. Following their release, the pair will 20.87% to 30.36%. In his new role of COO, Harmon will be be deported. Since the DOC used PCT’s initial tariff responsible for strategic and operation- Xin Franco Fan and Rex Xu Yu both for all other “non-selected respondents” al leadership of BSRO including service pleaded guilty to conspiracy to commit during its first announcement, rates from capability, customer retention, information wire fraud and honest services wire fraud, non-selected respondents also increased to technology and business development, according to the U.S. Attorney’s office. Both 30.36%. the tiremaker said. He will also help with were sentenced to 27 months in prison and The DOC is still working on final de- BSRO’s Vision 2020 strategic transformation ordered to pay $1.5 million in restitution. terminations in both its anti-dumping and and initiatives. Both men were employees of Goodyear countervailing duty cases in respect to truck Prior to joining Bridgestone in 2014, Orient Co., which manages all of the natural tires from China. Harmon was vice president of category and rubber purchasing, delivery, financing and

8 TIREREVIEW.COM • NOVEMBER 2016

quality certifications for Goodyear’s global Angelo Noronha, current chief of after- operations. Fan, Yu and others incorporat- market sales for Europe has been promoted ed overseas shell companies in which they to president, APAC and MEA, a vertical held a financial interest and caused Good- structure that covers markets in Asia, Aus- year to purchase from these tralia, New Zealand, India, the Middle East companies, court documents said. and Africa. He will assume his new role on Jan. 1, 2017. n FALKEN’S HOIT JOINS TIRECO “These changes in the technical depart- Andrew Hoit has joined Tireco Inc. as the ment will help us seamlessly integrate ATG company’s vice president of sales and mar- and YRC best practices to evolve as a much keting for its national brands division. stronger player in R&D and new product Prior to joining Tireco, Hoit served as development,” said Yogesh Mahansaria, vice president of sales at Falken Tire Corp. CEO of ATG. “The changes to the regional Hoit has also held positions with NTW and sales verticals are aimed to strengthen our Sears Holding Co. presence in the Latin American, APAC and In his new role with Tireco, Hoit will MEA markets. Both Angelo and Dhaval help expand Tireco’s presence in North have proven their mettle in the toughest of America. markets, and I am sure they will take ATG to “We really want to start to build our higher levels in their new roles.” brands and our portfolio and increasing the value for dealers,” Hoit told Tire Review. n DANVILLE GOODYEAR PLANT There are several new product lines set FINED MORE THAN $1 MILLION to launch in 2017 and the company will be Goodyear Tire & Rubber Co. has been updating its marketing strategy for next fined more than $1 million following safety, year, Hoit shared. health, fatality and accident inspections at its Danville, Va., plant, local media reports. n ATG RESTRUCTURES On Oct. 7, the Virginia Department LEADERSHIP of Labor and Industry’s Virginia Occupa- Following the acquisition of Alliance Tire tional Safety and Health (VOSH) program Group by Yokohama Rubber Corp. earlier issued four willful, 115 serious and three this year, ATG has announced organizational other violations to the tiremaker, totaling changes that reflect the realignments in $1,012,400 in penalties, according to VOSH effect. documents. Toru Nakamura has been appointed The four employee deaths in 2015 and chief technical officer. In this position he will 2016 were included in the citations, as well head ATG’s R&D and project management as two non-fatal accidents and health and functions, and also drive activities related safety violations found during inspections. to procurement, technical, production and According to VOSH, Goodyear had 15 sourcing functions. days from receiving the citations to comply, Vidit Jain has been promoted to chief request an informal conference with VOSH’s technology and R&D, and named to ATG’s Roanoke Regional Director, or contest the management committee. Jain reports to citations and penalties. Nakamura, and is responsible for product development, plant technology and field For more in-depth coverage visit: technical support globally. TireReview.com/news Dhaval Nanavati has been named as president, Latin America, and will lead ATG’s independent business unit in Central and South America. Nanavati will report directly to the CEO and be based at Alliance Tire Americas’ headquarters in Wakefield, Mass. He will also continue to handle aftermarket sales for some parts of North America as senior vice president for ATA. He will also report to ATA President James Clark.

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Tire Industry Honors Event Recognizes Industry Leaders Pictured (left to right): Richard “Dick” Gust, Bob Sherkin he Tire Industry Association spent the evening honoring some of (accepting award on behalf of his father Charles “Husky” Sherkin), Dan Brown and Harvey Kovac (accepting award Tthe tire industry’s most accomplished members during its Tire on behalf of his brother Fred Kovac). Industry Honors Awards Ceremony at the Tropicana Las Vegas. Kicking off the awards portion of the evening, Eddie Jones, director Harvey Kovac, brother of the late Fred Kovac, accepted the honor of sales for North America, named the recipients of the on behalf of his brother. Kovac worked at Goodyear from 1956 to Michelin Scholarship – which helps students pursue an education at a 1995 and was responsible for a number of significant tire successes technical or vocational school. This year’s recipients were Trey Benton, including the belted-bias tire construction process and an all-season Devin Corrigan and Ashlyn Hebdon. tire. In 1978 Kovac helped transform an old Akron, Ohio, tire plant into TIA also welcomed the newest members of the 2016 Tire Industry a Goodyear tech center, and in the early 1980s, he helped develop Hall of Fame during the event. The 2016 honorees included Dan Brown, Goodyear’s Aquatred. Kovac died in 1996. retired executive vice president and president of Tire Pros, American Bob Sherkin, son of the late Charles “Husky” Sherkin, accepted the Tire Distributors; Richard “Dick” Gust, president of national account honor on behalf of his father. Sherkin started working in the industry sales and director of government affairs at Liberty ; at his brother’s tire company United Tire at just 15 years old and Fredrick Kovac, late vice president of tire technology at The Goodyear eventually became part owner. During the mining boom in northern Tire & Rubber Co.; and Charles “Husky” Sherkin, late president of Ontario, Sherkin saw a need for improved tires and invented the United Tire & Rubber Co. concept and developed underground mining tires and forestry tires. Dan Brown spent more than 41 years in the tire industry and Sherkin’s business also became one of Canada’s largest retreaders recently retired as executive vice president and president of Tire Pros of OTR tires, and Sherkin at ATD. During Brown’s time as executive vice president and president created private brand OTR of Tire Pros, the Tire Pros network of dealers has tripled to more than production with BFGoodrich, 725 locations. MDG and General Tire. Richard “Dick” Gust has nearly 40 years of experience in the tire and Sherkin died in 2011. rubber industry and is well known for his pursuit to find solutions to the Additionally, Tire Review nation’s scrap tire problem. As president of national account sales and honored Lex Brodie’s Tire, director of government affairs for Liberty Tire Recycling, Gust expanded Brake & Service with the scrap tire collections and began serving the collection and recycling 2016 Top Shop Award. TR needs of major accounts in all 50 states.

n FORMANEK TAKES OVER AS Mike Wolfe reported that the association’s its members.” The association called for TIA PRESIDENT financial position remains positive. Wolfe the repeal of the LIFO accounting system, Tom Formanek is now at the helm of the shared that Raffa Accounting, a Washington repeal of the Fair Labor Standards Act Tire Industry Association. Formanek took D.C.-based firm, audited the association’s that raised salary thresholds, as well as the over as TIA president during the associa- 2015 financial report, and that the audit repeal of reposting requirements, costs and tion’s annual meeting in Las Vegas. is available to any TIA member in good workweek thresholds of the Affordable Care Formanek is currently regional sales standing. Act. Additionally, TIA called for the playing manager at Stellar Industries. He first field of state taxes between online retailers became involved with the association when n TIA ADOPTS RESOLUTION ON and brick-and-mortar stores. it was still the National Tire Dealers & Re- TAX REFORM treaders Association and over the years has During the Tire Industry Association’s annu- n CHICAGO PNEUMATIC served on various committees. al meeting, the association also sought the UPGRADES CORDLESS IMPACT Also during the TIA’s annual meeting, adoption of a resolution on tax reform. WRENCH members in attendance approved the According to the resolution, the “Asso- Chicago Pneumatic announced it has up- minutes from last year’s general meeting, as ciation urges lawmakers to oppose legisla- graded its CP8848 1/2-in. cordless impact well as the treasurer’s report. TIA treasurer tion that will cause economic hardships on wrench to provide 10% higher power. This

12 TIREREVIEW.COM • NOVEMBER 2016

impact wrench, which is the flagship product in the company’s cordless range, offers superior power and battery performance for increased productivity, durability, ease of use and mobility, according to Chicago Pneumatic. The advanced technology of the 20-Volt/4Ah CP20XP (20-Volt/6Ah will be available in February 2017) Lithium-ion batteries provide the operator with more power and a runtime twice that of other conventional products. The shock resistant and durable batteries slide smoothly into the tools’ cradle and are released via a quick release button. They feature triple protection circuitry and individual cell monitoring to prevent overheating and overloading during extended periods of use. The easily visible charge gauge provides accurate battery level information to help minimize downtime, according to Chicago Pneumatic. Also in the company’s cordless range is the compact CP8828 3/8-in. impact wrench, the lightweight CP8818 1/4-inch impact driver, the strong and versatile CP8548 1/2-inch hammer drill, and the ultra-compact CP8528 3/8-in. drill driver. All CP cordless tool packs come with two batteries and a charger. The cordless tools, batteries and chargers come with a three-year limited warranty.

n HUNTER RELEASES TCX625 PLUS HD Hunter Engineering Co. introduced the TCX625 Plus, which the company said packages popular, time-saving and ease-of-use accessories with the indus- try-leading TCX625. The TCX625’s pedal-controlled inner roller saves the operator time and effort, bringing service times that are comparable to manual methods, but are much safer. An enhanced lever also improves traction when mounting the outer bead, Hunter said. The company said its TCX625 Plus HD combines compact size with a unique mount/demount roller mechanism to provide high performance servicing of heavy-duty, over-the-road truck assemblies and includes several popular accessories.

n COOPER DEBUTS NEW UHP ZEON, SHOWCASES POPULAR LINES Cooper Tire & Rubber Co. showcased a wide range of its newest and most popular products at the 2016 SEMA Show. The tiremaker said its Cooper Zeon RS3-G1 was highlighted as a break- through in the UHP tire category. According to Scott Jamieson, Cooper’s director of product management, “Innovations in the tire’s tread compound and design help it deliver incredible grip, allowing the tire to hold the road at up to 1g in tight corners – a marvel of cutting-edge technology for an all-season tire.” The Cooper Zeon RS3-G1 is currently available in the United States in 37 sizes and features a treadwear protection warranty of up to 50,000 miles. The tiremaker also displayed products from its Discoverer STT Pro line, including the addition of a new 40-inch tire. Since its introduction in 2015, the Discoverer STT Pro product line has won accolades from the off-road com- munity for its ability to tackle the toughest terrain while maintaining excellent on-road manners not typically found in a dedicated off-road tire, according to Cooper.

n SHOW PHOTOS For a firsthand look at the Global Tire Expo and SEMA Show floor, check out Tire Review’s Facebook page at facebook.com/tirereview.

14 TIREREVIEW.COM • NOVEMBER 2016

N NEWS:FIRST LOOK Street to Track: ExtremeContact Sport CARLEY HULL Associate Editor

ontinental Tire the Americas best sports car drivers in the world to this year in Daytona as part of a co- rolled out its newest ultra-high help deliver the performance driving development venture with Hoosier Tire. Cperformance summer tire, the enthusiasts demand in a tire. These Now that Continental has ExtremeContact Sport, during an event drivers pushed our tires to the limits successfully acquired Hoosier after in Palm Springs, Calif., in October. to help develop a tire that includes years of partnerships with the Designed with the help of five superb dry handling while not company, Conti has even more room International Motor Sports Association sacrificing any of Continental’s award- to grow its racing technology, bringing (IMSA) drivers who tested the tire winning performance in the wet. This that technology to its consumer tires throughout its development, the new summer tire is ideal for sports and – potentially gearing up the company UHP summer product is Conti’s latest sport and luxury vehicles.” to start catering even more to the offering that brings the racetrack to the enthusiast driver. street. Racing Inspiration “Really everybody is going to enjoy “We took our knowledge from the Continental has been growing its the technology marriage that we are track to the street in a whole new way racing connections for some time, with going to bring together, combining the with the ExtremeContact Sport,” said the IMSA SportsCar R&D capabilities of a small company Travis Roffler, director of marketing Challenge and getting its General like Hoosier Racing Tire along with for Continental. “We chose five of the tire brand in stock car racing earlier a large company like Continental Tire that has a global footprint,” said Roffler, adding that the acquisition will also help the tiremaker drive its technology, research and development in pushing tires for the street. During the three-year development of the Extreme Contact Sport, IMSA drivers Andy Lally, Joao Barbosa, Lawson Aschenbach, Ozz Negri and Ryan Dalziel tested a variety of different tire constructions and compounds at Road Atlanta and Conti’s Uvalde Proving Grounds in Texas. According to Continental, 2,000 tires were tested between the racers and about 20,000 hours of machine testing was completed during development. With the help of the IMSA drivers,

16 TIREREVIEW.COM • NOVEMBER 2016

Conti said it was able to truly push the lead/follow exercises on the various SportPlus Technology,” Liu adds. tire to the limits that even professional tracks at the Thermal Club. “And it’s really focused on the main tire testers wouldn’t be capable of. The Built for car enthusiasts and consumer benefits that someone drivers’ personalities and likenesses will consumers who drive premium sports buying this type of tire is looking for, also be featured in POS materials for cars, luxury sports cars, muscle cars or so it’s the precise handling, security tire dealer showrooms and marketing roadsters, the ExtremeContact Sport on wet, slippery roads – it’s not materials at SEMA Show during the offers grip for drivers in dry and wet always dry out there – and tread life. tiremaker’s “Extreme Experience.” conditions, Conti said. Consumers are always concerned The evolution of the about tread life.” Testing the Technology ExtremeContact DW, which launched The tire’s compound is also As part of its introduction and to in 2009, the new tire has improved designed to help the tire on wet further test the tire’s capabilities, wet handling, road noise, comfort and road conditions. Using Continental’s Continental invited media, tire dealers tread life, Continental said. patented +Silane technology, silica is and tire distributors to the racecar “The target for the next generation bound into the tread to give the tire driver’s oasis, the BMW Performance product is enhanced dry handling, better wet traction and durability. School’s Thermal Club in Palm maintaining our leading wet For safety measures, Continental Springs. performance and also street manners, has also included its “Tuned In the middle of the desert, guests as these tires can be driven just about Performance Indicators” with the experienced the tires in a series of every day, and, last but not least, D (Dry) and W (Wet) letters in the driving exercises on cars ranging from improved tread life,” said Bob Liu, tread, indicating the tire’s optimal a BMW M3 to a souped-up Porsche product manager performance tires for performance levels in dry and wet Cayman to a Ford Mustang with killer Continental Tire. conditions. If a customer drives in the horsepower. To reach these targets, rain often, it’s time to replace the tire and wet/dry handling on ExtremeContact Sport features when the W is no longer visible. When ExtremeContact Sport tires was tested Continental’s SportPlus technology. the D is worn off, the tread depth is on autocross courses, timed laps and “The key technology for us is below the safe minimal tread depth most states require, and it’s time to replace the tire. Plus, to resolve soft steering complaints from some ExtremeContact DW users, the new tire features high-strength, two-ply sidewalls and a sports sidewall insert to increase stiffness for handling up to 86%, but only increasing ride quality stiffness by 6%, according to Liu. ExtremeContact Sport will be available in 71 sizes, ranging from 15- to 20-inch wheel diameters with a W and Y speed rating, in February 2017. The tire is also backed Conti’s new Total Confidence Plan, which offers consumers a 60-day customer satisfaction trial (or 2/32 inch of treadwear) and 12-month road hazard coverage (or first 2/32 inches) as well as a 72-month manufacturer’s limited warranty program. Plus, a 30,000-mile limited mileage warranty and three-year roadside assistance (or towing up to 150 miles) is available. TR

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N NEWS: FIRST LOOK Hankook Unveils Technodome

RANDY LOESER Publisher

ankook Tire Co., aiming to be a designed to strengthen Hankook at the end of 2014, Hankook Tire global top-tier brand by 2020, Tire’s original technology and future created a product for the value-minded Hunveiled its new R&D center, technology via basic and applied customer. Hyun Shick Cho, president & the Hankook Technodome, in Daejeon, research,” said Kim. “Through the CEO, Hankook Tire Worldwide/CMO, Korea, to global media members and Hankook Technodome, we plan to Hankook Tire, said the tiremaker will government dignitaries on Oct. 18. provide quality products to meet market be more aggressive in marketing the The new facility is the centerpiece needs and support customer satisfaction. Laufenn product while maintaining its of Hankook Tire’s new vision for a We will focus on the development of focus on its efforts to be a top tier brand. corporate culture and brand, as Hankook future tire technology, such as tires for “There are two types of consumers in hopes the 316,036-sq.ft. facility will electric vehicles utilizing the anechoic the U.S. market – ones that demand high help it attract the industry’s top talent, chamber. Material development is in quality, and others that focus on price provide an inspirational place to work, the process in partnership with material and value. Hankook Tire is targeting and utilize each of the 25 advanced companies, incorporating eco-friendly both groups in the U.S. market,” said laboratories – which are designed to production.” Cho. “Through the performance of OE nurture openness and innovation to business, Hankook Tire is proven to offer make the company a technology leader. Growth in the OE Market products with high quality and excellent Designed by Foster + Partners, the As of 2015, Hankook is the world’s technology. “ Technodome is located in the heart of 5th largest tire manufacturer in total Asia’s “Silicon Valley.” Hyung Nam production and 7th in global sales Future Direct-to-Consumer Kim, Hankook’s executive vice president revenue. Hankook Tire’s continued Online Sales and CTO, stated they strategically chose momentum has been propelled by high Hyuk-Jin Kwon, vice president of the location of Hankook Technodome demand in the UHP tire segment and an corporate communications, addressed near the company’s main R&D center to expanded premium Original Equipment the recent trend of Tier 1 manufacturers facilitate easier and quicker applications (OE) portfolio. The latter includes selling direct to consumers online. of its research-to-product development. deals with major premium automobile “The global trend of online sales is Kim said that at its opening, 750 brands such as Porsche, Mercedes-Benz, rapidly increasing. Hankook Tire is also employees will work in the Technodome BMW and Audi. The company’s recent preparing for online sales network for with the number expected to reach 1,000 premium OE business growth has direct online consumer sales. Internally, by 2020. Hankook Tire is dedicating shown steady expansion into various through our digital team, Hankook Tire 2.3% of sales revenue to R&D efforts, market segments, including high-end plans to strategize online distribution but the number is higher when facility premium cars, luxury sports cars, and marketing to upgrade our sales investment is taken into account. luxury SUVs, and truck and bus radials. network. As online sales increase and the In addition to the Technodome, Currently, Hankook Tire is supplying OE portion of online sales increase, we will Hankook currently operates five R&D tires to 39 carmakers. plan and execute internal and external centers with locations in Korea, China, strategy and investment.” TR Europe (Germany), the U.S. and . The Laufenn Strategy “The Technodome is essentially With the launch of the Laufenn brand

20 TIREREVIEW.COM • NOVEMBER 2016 The staff of Tire Review is thankful for the loyalty of our readers and the continued support of our advertisers

1-800 Everyrim.com Dill Air Controls Products MaddenCo Inc. Service Tire Truck Centers 31 Inc. E-Z Lift Conveyors MAM Software Snap Finance AAPEX East Bay Tire Mann+Hummel Snap-on Equipment ACDelco Epicor Software Marketplace Insights Specialty Products Co. Advance Auto Parts Factory Motor Parts Martins Industries Spend Less Auto Parts Advics Falken Tire Corp. Messe Essen Trade Shows Standard Motor Products Aeolus Tyre Co. Federal Tire Corp. Michelin North America Inc. STBB Inc. Aftermarket Auto Parts Alliance Federal-Mogul Motorparts Mighty Distributing Sun-Tech Innovations/ Alliance Tire Americas Inc. Federal Mogul/Anco Momentum USA, Inc. Balance Masters Alligator Federal Mogul/Moog Monro Synchrony Financial American Motor Co. Federal Mogul/OEX Mov-It Tire Products TBC Corp. American Omni Trading Co. Federal Mogul/Wagner Brakes Nexen Tire Corp. Tenneco/Monroe Brakes American Tire Distributors Federal Mogul/Wagner Lighting Nitto Tire USA Inc. Tenneco/Monroe Shocks Amsoil Federated Auto Parts North American Bancard The Wheel Group Andreoli & Associates Inc. Fitment Group North American Tire The Industry Association ARI Network Services FS Curtis & Expo Tirejobs Co. Arnott Inc. Gaither Tool Co. Inc. Northwood University Tire Pros Art Blumenthal Gates Corp. Nucap Industries Inc. Tire Rack Wholesale ASA Automotive Systems George Badasci NTN Bearing Corp. Titan International Asimco Giti Tire (USA) Inc. Omni-United USA Total Auto Business Solutions Ateq TPMS Tools Global Corporation Orange Electronic Toyo Tire USA Corp. Autel.us Goodson Mfg Co. Pacific Automotive Industries Triangle Tire North America Auto Care Association Goodyear Tire & Rubber Co. PartsQueen.com Tru Balance Bartec USA Great Lakes Tire Company PDQ Supply Co. TSI-Saf-Tee Siping/Grooving Bee-Line Corp. Hankook Tire America Corp. Performance Friction Corp. Tyre Export, Inc. BendPak Hennessy Industries Inc. Petroy B.V. University of the BKT Tires North America Hercules Tire & Rubber Co. Phillips 66 Aftermarket Foundation Blackburn’s Hubcap Huf Group Piedmont Truck Tires Valvoline & Wheel Solutions Hunter Engineering Co. Pinnacle Performance Vee Tyre & Rubber Co. Bosch Automotive Husky Tire Pirelli Tire North America Vehicle Inspection Systems, Inc. Service Solutions I Print N Mail Plombco Inc. VMAC Bridgestone Americas IMI Plyworx Vogue Tyre & Rubber Co. Campbell Hausfeld Innovative Products of America Practical Promotions Wallace W. Wade Specialty Tires Car Care Council JohnDow Industries Precision Instruments Wegmann Automotive Centric Parts JS Products STEELMAN Quality Mold Wesbrooks Century Interactive K&M Tire Reliable International Exhibition America Chevron Products Ken-Tool Services Co. Wheel Polish Specialist CIMS Inc. Kenda Rubber Richter's Tire & Auto White Knight Wheel Accessories City OK Tire Store Kluttz Tool Roadrunner Tire Distributors Wix Filters China Manufacturers Alliance Kumho Tire USA Inc. Rovince Tire Wulf Gaertner AutoParts AG (CMA) KYB America Schrader International Yokohama Tire Corp. Continental Corp. Lakin Tire West SD-International USA Your Next Tire Continental Elite Larry’s Tire SEMA Zafco/ZTI Tires Inc. Continental Tire the Americas Latin American & Caribbean Sentry Tire ZC Rubber Cooper Tire & Rubber Co. Tyre Expo Corghi USA Latin Expo Group, LLC Counteract Balancing Beads Inc. Launch Tech USA Inc. Custom Wheels Inc. Linglong Americas Inc. Dell-Stoko USA M&R Tire Products Dickies Mac Tools MP MARKET PRICING

HELENA, MT OKLAHOMA CITY, OK V1 $345.00 $480.00 $560.00 $540.00 $453.99 $564.00 V1 $276.00 $374.76 $354.95 $360.00 $428.00 $428.00 V2 $404.36 $595.80 $640.00 $580.00 $397.48 $301.00 V2 $264.00 $459.52 $407.80 $520.00 $712.00 $720.00 V3 $674.72 $644.00 $780.00 $1040.00 $640.00 $840.00 V3 $568.00 $639.48 $679.80 $480.00 $618.00 $600.00 V4 $740.00 $560.00 $760.00 $900.00 $912.00 $610.44 V4 $356.00 $739.88 $639.80 $480.00 $920.00 $604.00 Mass Mass Tire Tire Car Car Mass Mass Tire Tire Car Car Merch Merch Dealer Dealer Dealer Dealer Merch Merch Dealer Dealer Dealer Dealer A B A B A B A B A B A B

MADISON, WI LEXINGTON, KY V1 $359.46 $440.00 $397.56 $424.00 $516.00 $428.00 V1 $375.96 $371.96 $587.96 $415.96 $426.00 $446.00 V2 $475.84 $640.00 $574.96 $524.00 $452.00 $651.36 V2 $483.96 $499.96 $688.00 $659.96 $604.00 $536.00 V3 $915.96 $587.96 $540.00 $600.00 $676.00 $608.00 V3 $535.96 $517.96 $935.96 $515.96 $687.80 $668.00 V4 $771.96 $787.96 $460.00 $500.00 $704.04 $704.00 V4 $755.96 $587.96 $831.96 $507.96 $731.52 $632.04 Mass Mass Tire Tire Car Car Mass Mass Tire Tire Car Car Merch Merch Dealer Dealer Dealer Dealer Merch Merch Dealer Dealer Dealer Dealer A B A B A B A B A B A B

MACON, GA TRENTON, NJ V1 $335.52 $276.00 $415.44 $320.00 $428.40 $356.00 V1 $399.96 $539.96 $548.00 $427.72 $433.60 $422.40 V2 $459.52 $272.00 $501.15 $528.00 $452.00 $484.00 V2 $587.96 $588.00 $604.00 $555.72 $676.00 $540.00 V3 $880.00 $432.00 $500.00 $500.00 $652.00 $812.56 V3 $959.84 $587.96 $660.00 $615.96 $540.00 $680.00 V4 $563.68 $368.00 $544.00 $580.00 $484.92 $656.00 V4 $575.84 $695.96 $600.00 $547.96 $856.00 $739.92 Mass Mass Tire Tire Car Car Mass Mass Tire Tire Car Car Merch Merch Dealer Dealer Dealer Dealer Merch Merch Dealer Dealer Dealer Dealer A B A B A B A B A B A B

LEGEND

V1: 205/55R16 V2: P215/55/R17 V3: P265/70R17 V4: LT245/75R16 ■ Tier 1 Brand ■ Tier 2 Brand ■ Tier 3 Brand

DATES: 10/06/2016 - 10/14/2016

22 TIREREVIEW.COM • NOVEMBER 2016

ENSANITY

ROGER MCMANUS Contributing Writer

Eavesdropping Strategy Using Twitter to snag business that others are ignoring – for now

T IS EASY TO DISMISS SOCIAL MEDIA as a bunch of individuals who generally chat about things as mundane as their kids’ soccer games and swapping cute cat videos. The problem with social media is that the connection is not obvious as to how it relates to street-level retail. But, to dismiss it because you don’t understand how it can help Igrow your business would be a mistake.

This series of articles in Tire Review is it would require learning something called “Ensanity,” a truncation of the new, perhaps something you haven’t had ■TAKEAWAYS words “entrepreneurial insanity” which much interest in or use for – until now. is the title of a book I wrote specifically Full disclosure: I am one of you. for the tire industry. The core thesis is I don’t fawn over Twitter and my > Use Twitter to “eavesdrop”on potential that systems allow an owner to be less wife usually has to tell me to look at customers and their needs important to the daily operation of his something on Facebook in which I am or her business, which consequently named or pictured. But I am committed > People will often discuss increases its value as a stand-alone asset. to changing that – not because it’s purchase intent on Twitter My research suggests that social suddenly thrilled me, but because it’s > Search for tire and auto media – specifically Twitter – is precisely going to be absolutely necessary for me related tweets using key- such a system that allows greater to do my job well going forward. words and location settings freedom and growth for an owner. This article is designed to increase your Why is Twitter so Important? > Try narrowing down your Twitter searches with date awareness of a very useful phenomenon Imagine you are in a crowded mall ranges that is going on around you – one with where you stopped to grab a quick lunch. little participation at the independent You are standing near the food court shop level. where you happen to be close enough to Certainly, larger corporations with hear a group of three women discussing the economic resources to focus on social their shopping experiences. One of media marketing have their Twitter them mentions that she must stop by a strategy well in hand. You might say that tire shop on the way home because of the “little guy” who may only own six “something funny” about her right front bays or six stores simply does not have tire. She casually asks one of her friends time to worry about such things. Besides, for help regarding what tire shop she

24 TIREREVIEW.COM • NOVEMBER 2016

would recommend, as she’s looking minutes and would be happy to help from your unique perspective with the for a place that won’t take advantage her personally. ability to deliver it conveniently. of her. While you might not randomly That is precisely the opportunity At that moment, it would be walk up and down the mall, a Twitter conversation provides. appropriate for you to casually interrupting people, asking if they It creates a public, multi-person interrupt the conversation, introduce need auto services (which reminds setting making your inclusion in the yourself and offer some helpful me of doing an email blast), the conversation seem natural. And, while advice. You might even mention that casual interjection in the conversation the person speaking was not talking your tire store is on the mall property is considered neither rude nor to you directly, by overhearing the just opposite the anchor department inappropriate. You were not “selling,” conversation you are in a ideal position store and you’ll be back at work in 30 rather, you were offering some help to offer assistance (and make a sale in the process) without appearing to be rude by interrupting. While Twitter is full of mundane conversations, it is often a place where people comment on purchase intent – and seek the counsel of those they interact with online. It is perfectly OK to “eavesdrop” on those conversations and initiate what could end up being a business relationship. The mall conversation could very easily be typed in a Twitter exchange where a participant is asking for advice. To come on with a strong sales pitch would likely not work well in the mall. It doesn’t work on Twitter either, but to offer gentle encouragement, advice or assistance could be well received.

How Does it Work? The key to this tapping into conversations across Twitter starts with knowing where to listen. Twitter actually makes it very easy to do, which is a huge time-saver. The queries to help you zone in on the right conversations come in many categories, but for brevity, I will include a few of those most appropriate for the retail tire business. Keywords: These are the words or phrases that when overheard would make your ears perk up, as the people tweeting them have a higher likelihood of being potential customers. Obvious topics include “tires,” “tire shop,” “brakes,” “oil changed” or “car repair.” And, there are the buying signals such as “anyone recommend” or “any advice on.” You may select from various configurations of words, such as the exact word or phrase or any of these words. You can even put a minus

26 TIREREVIEW.COM • NOVEMBER 2016

Kansas City if your business is in San In multi-word phrases, the quote marks will Diego. To limit the search, click the search box in the upper right corner search on the exact words in the exact order and put the query “near: [location to trigger a hit. name]”. (Please note that the colon or “:” is important.) The location can be the name of a city or (better yet) a sign in front of a word to specifically “auto” or “service” might appear, but ZIP code. Twitter will show you a list eliminate it and exclude it from results. might not have anything to do with of tweets than have originated within Of course, you’ll want to track “auto service.” that area. By default, Twitter sets a 15- comments about your own business Twitter supports Boolean logic, but mile radius; however, you can set that by entering your company name in does not require the use of operators distance to be anything you want by the search box. Probably the box for like “and” or “or.” You can just type using functionality in the address bar. “any of these words” will give you together multiple keywords into your Attitudes: You can also direct the broadest possibility of capturing query and Twitter will deliver tweets Twitter to display people who convey shortened or modified terms referring that include those terms. That being positive attitudes or negative attitudes to, for example, Smith’s Auto Service said, you may want to find tweets in their tweets, which is particularly and Tires. In that case you might that include one keyword or another, useful if you are monitoring what is include the words, Smith, Smith’s, in which case Twitter would deliver being said about your business online. Auto, “Auto Service,” Tires, “Smith’s tweets that mention either or. This also helps you discover prospects Auto Service,” “Smith’s Tires,” etc. Locations: Perhaps most useful who are unhappy with competitors In multi-word phrases, the quote to any retailer would be the ability in your trading area. This is a great marks will search on the exact words in to tell Twitter exactly where to listen opportunity to pick up a client the exact order to trigger a hit. Without for tweets based on specific places or currently dissatisfied with a current the quotes, you would receive possibly areas. It does little good to discover business relationship, who may have irrelevant results where the words a conversation about needing tires in shared a negative experience online. Date Ranges: Setting up date ranges will help limit tweets to a specific date range, allowing you to avoid tweets from weeks or months ago when the window of opportunity is well past. This feature is a great time saver, especially if you don’t want to do this every day. You can filter your search results to a particular time period by adding the “since:” and “until:” options into your search query. Saved Searches: Once you have developed search criteria that works well for you and pulls up valuable conversations, you can save the search under “More Options” to quickly and easily use it again.

Twitter Avoidance If you have been avoiding Twitter to this point because it seemed irrelevant to your business, it may be time to reconsider. Certainly, using these techniques is something that can be assigned to a staff person, but it is always good to be familiar with what you are asking him or her to do for you. It makes you look more aware – maybe even cool. TR

28 TIREREVIEW.COM • NOVEMBER 2016

These are by no means all encompassing, IN THE SHOP but they will work if they become part of your daily routine.

My Success List 1. Watch the sales and profit numbers DAVE CRAWFORD 2. Control payroll and effectively Contributing Writer manage tech productivity 3. Set yourself apart from the competition and develop an effective marketing plan 4. Be great on the phone Dealer Success 5. Break from your comfort zone and Knowing what numbers to watch look for opportunity For this, my first article, I’ll focus how to best keep an eye on sales and profit HERE’S AN OLD EXPRESSION THAT SAYS, numbers. “If you’re not serving a retail customer, you’d better Your Daily Numbers be serving someone who is.” I can’t take credit for Know your numbers. I know it sounds that line, but have used it extensively over the years corny, but when you and your team get in this business. focused on the numbers, you will see improvement. There are so many ways Everything starts with a sale, and if to evaluate sales and profitability; most T you’re not at the counter dealing with the of them have merit, yet I am a believer in end-user, then you need to be working keeping things simple. with your people to ensure success. When it comes to watching the There was a time when you could take numbers, three things are always on my care of your customers and your people radar. The first is looking at the numbers and the rest would take care of itself. It’s every day; the second is to make sure a lot more complicated than that today. you are buying right, and the third is to The business is more diverse, vehicles are control the 1%s. ■TAKEAWAYS a lot more complex, customers demand As a shop owner, I look at the sales more and good employees seem to be and profit numbers every day, then I chart harder to find. It also costs a lot more to them against a weekly objective. Weekly > Look at your numbers every day and know what it costs play today than 20 years ago. Equipment is easier for me because too many vehicles to open the doors each costs more, computers are an integral are not picked up the day that they are morning part of our daily lives, insurance and completed and that can skew things. I track regulations have driven our costs up, and the average repair order (ARO), car count, > Make sure you are buying profit margins are not as robust. Bottom sales and gross profit, and tire units. The right and taking advatage of line is that we all need to be better combination of these numbers gives me a all opportunities business people to be successful. good barometer of the business. When I see > Control the 1%s, as they add The trouble is, there is no exact recipe a drop-off in any given area, I will look for up fast for success in the retail tire and service the reason and react if needed. You can also business. I was asked recently to wave compare them against your budget and > Tracking the numbers helps you correct your course quickly a magic wand and make something last year’s results. happen. If I knew what the magic was I It all starts with knowing what it would have retired years ago, selling my costs to turn the key every morning. If secret when asked. But there is no magic you have a budget, then you already wand – it’s a combination of smaller have the numbers. If not, then you need pieces that make us successful. four pieces of information: The list of those smaller pieces that • Average monthly expenses contribute to shop success is endless, but • Average gross profit I took some time recently to come up • Desired net profit (bottom line) with the top five things that I feel will • Working days in the month help any retail tire dealer be successful.

30 TIREREVIEW.COM • NOVEMBER 2016

Here’s the calculation: be tracked to make sure purchase goods sold just 1% (or $19.61) per day, 1. Gross profit (let’s say it’s 49%) objectives are met. and controlling expenses just 1% (or MINUS desired net profit (let’s say saving $17.69) per day improves the it’s 10%) = 39% Are You Buying Right? bottom line 66%. Keep the focus and 2. Average monthly expenses (use The purchasing of tires and parts is this adds up to an additional $23,640 in $46,000) DIVIDED BY 39% (.39) from an area that needs constant attention. the bank at the end of the year. above = $117,948 (required monthly Distributors want your business, sales) and most have developed marketing Monthly sales $100,000 Increase 1% $101,000 3. Required sales from above ($117,948) opportunities with additional DIVIDED BY number of working discounts. Pair this with manufacturer Cost of goods sold $51,000 Decrease 1% $50,490 days in the month (say 26) = $4,536 programs and the combined back-end Gross profit 49% $49,000 50.5% $50,510 (required sales per day). If the store discounts can be substantial. It starts Expenses $46,000 Decrease 1% $45,540 is open six days a week, then the with building a solid product screen, weekly sales objective is $27,216. then working with your team to sell Net profit $3,000 $4,970 4. I like to double-check my math, so the products that have the greatest $117,948 in sales MULTIPLIED BY impact to your bottom line. So often, Of course, you may not hit the 49% (.49) gross profit percentage dealers will be enrolled in numerous numbers every day, but if you hit them = $57,794 in gross profit dollars. manufacturer programs. There’s half the time it’s still more dollars to Subtract your average monthly nothing wrong with this approach, your bottom line. expenses ($46,000) = $11,794 in net unless you find yourself not being able profit, which is 10% of monthly sales. to take advantage of opportunities. There is No Recipe Here’s an example we faced earlier There is no exact recipe to success. It I think it’s a good habit to share this year: We are signed up as Bib-1 takes an ongoing focus to be successful, this information with your team. dealer with MAST. Our purchases and it doesn’t get any easier. There are If everyone knows the objective, it fall between Bib-levels and when we many benchmarks and numbers that makes it easier to understand when consolidated our lines and focused our come into the equation, but I’ve found you push to get vehicles in and out. sales efforts, we found that we will that tracking those things mentioned And if you take a few minutes to look attain Bib-2 status, which is worth an above allows me to feel the pulse of at yesterday’s invoices, you’ll have a additional 2.5% to the company. the business, pointing me in the right better understanding of your business Timing is also paramount. Many direction when anything gets too far flow, and occasionally you’ll pick up opportunities are driven by the out of place. something that was missed. products the distributors need to sell Know the numbers. Emotions don’t Average Repair Order (ARO) - to reach their objectives. By staying tell the whole story. I have found over Industry benchmarks all tell us that on top of this, you’ll find this can add the years that a “gut-feel” or thinking bigger is better when it comes to ARO. additional dollars that will drop to that you know where things stand can I agree, but the numbers will vary your bottom line. This is the same be misleading at times. Take the time based on the mix of business. If you for parts. Competition is abundant, to focus, to understand and you’ll see are heavy with oil changes, the number and the local parts stores are hungry your bottom line improve. will be less; if you sell a lot of tires, the for business. They all have programs In the next column, we’ll focus on number will be higher. The important that will offer back-end discounts and controlling payroll and technician thing to remember is to make sure additional support programs. I believe productivity. TR your team is taking time to look at each in loyalty to long-time suppliers, customer’s vehicle and recommend but also realize what a couple of An industry veteran of 40 years, Dave needed services. ARO will increase. percentage points can mean to the Crawford is president and COO of Car Count - To me, car count is bottom line. Virginia-based Bobby’s Tire and Auto. driven by effective marketing. If you Prior to working for Bobby’s Tire, he see a drop, it should tell you that Controlling the 1%s served as CEO of The Hybrid Shop, vice something is wrong. “Watch the pennies, and the dollars president of Am-Pac Distributor’s Tire Tire Units – In this business, tires will take care of themselves.” We’ve Pros dealer program (later bought by are paramount. Service follows the all heard this, and I agree totally. If American Tire Distributors), vice president tire sales, which is a key element in you want to impact your bottom line, of Mail America and was long associated the profit mix. But, there is also profit focus on managing the 1%s. Here’s an with ACCC. in tires, especially when the backend example using several numbers from program discounts are factored in. earlier. Increasing sales just 1% (or Units and dollar sales should both $38.46) a day, decreasing the cost of

32 TIREREVIEW.COM • NOVEMBER 2016

SwipeThe popularity ofNo mobile More payment systems is on the rise, but is your shop ready? DENISE KOETH | Senior Contributing Editor

s further proof that “mobile total value of mobile payment transactions – to everything” is here to stay, today’s tech- $27.05 billion, up from $8.71 billion. savvy consumers are buying into the With the trend toward mobile payment mobileA payment concept, making purchases at on the rise, let’s take a look at the similarities retail stores with a wave of their phones instead and differences of the most popular systems of a swipe of their credit cards. available, as well as the benefits to both Services such as Apple Pay, Android consumers and businesses. Pay and Samsung Pay allow users to make secure purchases at participating retailers by Mobile Payment Options holding their phones near a contactless point- Many similarities exist between the three most of-sale terminal (equipped with near field widely used mobile payment systems currently communication, or NFC, technology). on the market, which is a good thing for According to an October 2015 Fortune retailers as it removes some of the complexity article that cited a survey by Accenture, 52% of of different options. North Americans were “extremely aware” of In 2014, Apple Pay was first on the mobile- mobile payments, but only 18% used them on pay scene – which may be one reason behind a regular basis. At that time, millennials and the platform’s widespread use as compared to higher-income households reported the highest its counterparts. Apple Pay is available only numbers, with 23% and 38% using contactless on Apple devices, starting with the iPhone 6 payments at least once a week, respectively. through the most recently released models. If that’s not convincing enough for you to By using the iOS Wallet app, users load their consider updating your shop’s POS terminal credit/debit card data by capturing them with to accept mobile payments, consider this: We the iPhone’s camera. Once this information are nearing the end of 2016, the year in which is stored, users just need to place the iPhone eMarketer forecasted a 210% growth in the in close proximity to the NFC terminal. The transaction is authenticated by using the iPhone’s TouchID fingerprint sensor. Google’s current mobile payment system, Android Pay, established its roots in its peer- to-peer payments service with Google Wallet back in 2011. Today, Android Pay is available on devices running Android 4.4 or above. Similar Analysts see to Apple Pay, users store credit card information via their phone’s camera, place the phone near the NFC terminal, and the transaction is strong growth in authenticated by fingerprint sensor. Samsung Pay is available only on the the total value of company’s phones, starting with the Galaxy S6 and Note5. This program has one main difference from its counterparts – while mobile payment Samsung Pay works on NFC terminals, it also offers magnetic secure transmission (MST), in transactions. which a magnetic coil embedded inside of the device generates a dynamic magnetic field. This

34 TIREREVIEW.COM • NOVEMBER 2016 In an increasingly mobile marketplace, these newer payment systems offer added security + convenience for customers.

mimics the magnetic strip found on credit/debit cards and allows it to work with traditional card terminals. Each system works with major credit cards and, with the exception transactions might shift to the issuer. of Samsung’s MST capability, requires a Processing returns is not any more contactless payment-capable POS terminal, complicated for mobile device payments, either. which can be acquired by calling your shop’s Returns through Android, Samsung and Apple payment provider. programs are performed similarly; Apple offers the following information to businesses. Benefits to Consumers and Retailers “Use the Device Account Number to find the For consumers, the ability to mobile pay at purchase and process the return, just like you checkout mainly boils down to convenience. would with a traditional credit or debit card They no longer have to search through their payment. To see the last four or five digits of wallets to find a credit or debit card, swipe and the Device Account Number, ask the customer wait. Credit card information is stored within to go to Wallet, tap the card, the app, so all information is transferred when and tap (the information icon) the phone is swiped near the contactless POS on the lower-right corner MOBILE PAYMENT terminal. Apple Pay and Android Pay also work of the display. You can also RESOURCES with compatible mobile apps and websites, so have the customer hold their in-app and online purchases also can be made iPhone or Apple Watch near using the systems. Both companies offer support the reader, select the card they for businesses interested in adding mobile used to make the original payment options to their websites and/or apps. payment, and authorize For retail businesses, in addition to staying the return with Touch ID or Apple Pay – apple.com/apple-pay relevant in an increasingly mobile-dominated passcode.” marketplace, the payment systems offer added Finally, each company security. Every transaction on your customer’s offers help for businesses smartphone or tablet requires fingerprint when it comes to spreading authentication (or a passcode for older phones the word that mobile payments that do not offer fingerprint identity sensors). are accepted. Downloads, When accepting mobile payments, your shop logos, signage and decals are doesn’t receive a customer’s actual credit or available at no cost for retailers. debit card numbers, with further minimizes While chances are the security risks since this information is not majority of your shop’s stored in your systems. customers still prefer to pay Android Pay – android.com/pay When it comes to fraud, mobile payment via good old-fashioned ways – transactions are treated in the same manner credit card, check or cash – the as current credit and debit transactions, so predicted growth of mobile there’s no added liability for your dealership. payment system use and the According to Apple, within apps and websites, ease with which your store Apple Pay transactions might be treated more can adapt to a compatible POS favorably than standard transactions with system makes this worthy of Samsung Pay – samsung.com/pay a credit or debit card – meaning liability for consideration. TR

PURCHASING GUIDE 35 5 Things to Look for When Making Large Equipment Purchases TIM FRITZ | Contributing Editor

That shiny new piece of equipment may seem like a great investment, but you need to be smart with your spending. Consider these “Top 5 Tips” when purchasing each of the following tire shop essentials.

and you don’t want to be stuck a few years Alignment Machines down the road unable to service newer vehicles because you haven’t updated the software on your alignment machine. Some alignment Think Long Term: Long term does not consoles can update through WiFi and even pull 1mean finding the lowest price, but finding vehicle specs directly from the Internet. the best “value balance” of what you need. This might include increased productivity, durability Preventing Downtime: Damage to the and product quality, depth of support and 4heads is one of the leading causes for innovative features. Long-term decisions can alignment equipment downtime. Wireless mean paying more now or risking the chance alignment systems eliminate the chance of that low-cost option will cost you more down wires being tripped over. When performing the road due to quality issues, spotty service and an alignment, set-up time is shorter because crippling productivity problems. technicians no longer have to deal with wires or wireless transmitters. Other machines use Speed: Choose features that can help to cameras to calculate alignment readings, which 2maximize a technician’s time and decrease can save time and increase profits. the number of trips around the car. It could be as simple as an air hose at each corner of the lift Training: When considering alignment for tire inflation. Also, it could be a system that 5training for your technicians, look for eliminates the need to manually pull and replace courses that offer a balance between classroom the pins on the turn and plates, reducing the time and hands-on experience in a shop setting. typical two or three trips around the vehicle to Technicians should have the opportunity to replace the pins. use the alignment machine under real-world conditions. Many equipment manufacturers Updated Specs: Being able to continuously have regional training centers so technicians 3update the software is important. Alignment won’t have to travel far for classes. machines are long-term investments Brake Lathes

Shop Location: Before purchasing a brake 1lathe, be sure to map out your shop so you know where the brake lathe will be positioned. Be aware of any space limitations you may have. Placing the new lathe where the most brake work is done in the shop can increase both the efficiency and the profitability of the equipment.

36 TIREREVIEW.COM • NOVEMBER 2016 Be Prepared: Not having the right adapters 2and accessories can be a productivity killer. Be sure to purchase the adapters and accessories your shop needs to speed set up and prevent mistakes.

Bench/On-Car: When choosing a lathe, take 3time to go back through your repair orders to see what types of jobs your shop sees most on a regular basis. This will help you decide if you need a bench or on-car lathe – or both.

Sharp Bits: Always have sharp bits. 4Cutting a rotor in one pass is essential for productivity. For non-composite rotors, it is possible to take as much as 0.020 inches per side while still having an acceptable finish; however, with a composite rotor or one with hard spots, the depth should be reduced (likely below 0.010 inches per side) for a quality finish. To remove needed. Be sure to ask the tough questions about this much material, sharp bits are essential. downtime.

Training: Equipment purchases are big Two Post/ Four Post/Scissor: There are 5investments for repair shops, and technicians 4advantages and disadvantages to each type need to be able to take advantage of all the of lift. Your decision will depend on the types features of the lathe in order to increase the of jobs the lift will be used for, the amount of profitability of each job. When purchasing a new space available, whether you own or lease the brake lathe, be sure to take advantage of any property, if you need the lift to be portable, training the manufacturer may offer. This can be and even how high the ceiling is. A good sales as simple as going to their website and watching representative should be able to walk you a training video to visiting their training through this consideration process. center, but be sure to take advantage of what’s available. Financing: Purchasing a lift is a large 5investment for your shop. Take time to look at all the leasing vs. financing options to make Lifts sure the investment fits within your budget.

Safety: Lift safety is paramount. Make sure 1the lift you are considering purchasing is Tire Changers ALI/ETL Certifed. More information on this third-party certification program can be found at Cost: Tire changers come with a wide range www.autolift.org. 1of features. Increasing levels of convenience, efficiency and comfort come at a price, so take Accessories: Lifting equipment comes the time to determine what is best for your shop. 2with many different options and features. Do your homework and compare the various Carefully consider all options so you are able tire changers on the market to find the one that to equip your shop with equipment that will is best for your shop. reduce job time and increase profits. Specialty Tires: Depending on the variety Service: Repair shops can’t afford to have 2and number of specialty tires your shop 3a lift down for an extended period of time handles, you may wish to add a tire changer waiting for repairs. Before purchasing a lift, be that can handle motorcycle tires, golf cart, go- sure to ask about the warranty as well as how kart, ATV and lawn mower tires, or machines long it will take to get replacement parts and designed for tubeless commercial truck, off-road who will install those parts when repairs are and agricultural tires.

PURCHASING GUIDE 37 Air compressor capacity and electric service (110 or 220 VAC) may determine the drive system (air, electric or air/electric combination).

Operator Fatigue: A wheel lift helps 5technicians get heavy tire and wheel assemblies up to tabletop height with less risk of damage. More importantly, a wheel lift reduces operator fatigue and potential for back injury. Many tire changers feature ergonomic controls designed to minimize excessive reaching, walking or bending, which improves both Low Profile/Runflat:A basic tire changer efficiency and operator safety. 3can handle conventional tires and wheels, but if your shop sees a lot of low-profile tires on delicate alloy wheels, look for clamps and bead- separators designed to minimize wheel damage. Wheel Balancers Wheel protection accessories, such as polymer/ plastic covers for clamps and demount heads, Know Your Needs: When shopping for can eliminate any metal-to-metal contact. Many 1a wheel balancer, as with any piece of features of new machines also speed changing of equipment, the more features it has, the more runflat tires or PAX assemblies. it may cost. Some added features may be beneficial for a high-volume tire store, while a Shop Requirements: Shop space available smaller repair shop may not be able to justify 4may limit the maximum footprint allowable. the added expense.

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38 TIREREVIEW.COM • NOVEMBER 2016 Road-Force Variation: Road force for the expensive 2balancers, in addition to performing a zinc wheel weights, traditional spin balance, measure both the wheel for instance, as some and tire by pressing a large roller against the balancers are based on tread of the spinning tire. The roller applies the idea that an extra 1,200 to 1,400 pounds of pressure to simulate the few ounces will be weight of the vehicle on the tire as it rolls down noticed by the customer. the road. A computer in the machine along with Wheel weight reduction various sensors determine variations of tire software can add stiffness, radial runout and anything in the tire’s precision and savings. construction (such as inconsistencies in the belt package) that would prevent the tire from rolling Touch Screen smoothly when it is weighted by the car. 5Navigation: A balancer is a Ability to Place a Weight Behind a sophisticated piece 3Spoke: This feature can allow a technician of equipment. Some to hide a weight behind a spoke so it is not seen balancers incorporate by the customer while still keeping the assembly large touch screens to dynamically balanced. Some machines can even tell the technician where to place the weight detect spoke position using a laser and camera. as well as enabling them to input information into the system faster. The screens can also be Wheel Weight Reduction Software: used for training on the machine, allowing a tire 4Wheel weight reduction systems can cut technician to learn more on the job. TR costs dramatically when compared to older dynamic balancers. You may be paying more

PURCHASING GUIDE 39 Incentivizing Your Team Keeping employees engaged and optimistic TERRY KELLER | Contributing Writer

ince the time we started advising shop owners, I’m pretty sure I’ve seen every pay plan known to man. I’m also pretty sure that I’ve heard every possible variation of the same question: “How can I pay my team in a way that motivates them without eating all of my profits?” SIf that sounds familiar, you can rest assured that you’re not alone. Whether you developed a pay plan yourself or are using one developed by a so-called guru, there’s a reason why most pay plans fail – they don’t motivate employees or incentivize them to do what the owner wants them to do. So what makes a good pay plan? I can’t give you specifics in this article, as pay plans should be based on your specific shop and its individual employees. But I can cover what makes an incentive- based pay plan work and why they’re critical for growing your shop. A brief note before we dig in: The other consideration unique to your situation is the law based on where you live. Not all states allow true incentive-based pay plans (I’m looking at you, California) so please consult with a labor attorney before changing the way your shop pays its people.

Finding the Right Motivation Consider this situation: Your service advisor One of the most important principles that I go by misses his goal. His head goes in the toilet, and when developing pay plans is this: Keep it simple. he loses his confidence and motivation. It could A pay plan should be understandable, first take weeks to turn his head around. You’ll and foremost. Technicians are detail oriented – it’s spend weeks trying to dig him out of that hole. what makes them good technicians. This means Meanwhile, his performance drops (as a self- that if you institute a pay plan, they’re going to fulfilling prophecy), average RO drops and total keep track of their progress toward goals. I’ve shop sales drop – all of which drag him down never known a tech who waited until the end of further, burying him deeper in the same mud a pay period to figure out how much money he’s you’re trying to pull him out of. going to take home. They all keep track, maybe That’s why achievable goals are so important. not all daily, but all of them do. This doesn’t mean that the goal should be so This is why having clear goals is so important. easy that your employee reaches it every time. If a tech understands how he gets paid, he can That’s called a salary increase, not an incentive- determine on his own whether he’s won or lost based pay plan. each and every day – and that gives him a huge Instead, your incentives should keep your motivation to win. employees engaged. It also should keep them positive and optimistic, even when the shop The Carrot, Not the Stick isn’t on target for the month. With the right The second check box to tick when you’re motivation, your service advisors will work their considering pay plans is “achievable.” If your butts off to get a win, even if your shop is having team’s benchmarks are so high and require so a rough period. much growth that they’re months away from effectively increasing their pay, it’s actually a Incentives vs. Hourly Rate disincentive. In other words, pay plans shouldn’t If the first thing you think of when you hear be about punishing your employees. about incentive-based pay plans is how hard Not only will this kind of pay plan hurt them, a sell it will be to your techs, you’re not alone. but, ultimately, it will hurt you, too. At first glance, telling your tech that they’ll be

40 TIREREVIEW.COM • NOVEMBER 2016 What technicians want most: “Show me paid for the hours they bill instead of the hours the money!” they work seems like a good way to lose a good technician. And if you don’t believe in the pay plan, that’s how they’ll see it. Great techs have a tendency to be prima donnas, and switching them off of hourly pay without showing them the benefits can be a huge hit to their ego. and the shop all benefit. The tech benefits from a But that’s the beauty of the incentive-based full pipeline and more billable hours. The service pay plan – because nearly any tech you ask will advisor benefits from a higher average repair tell you their highest priority is how much money order. Customers appreciate the peace of mind they can take home. provided by a proper inspection. Your shop Give them a way to blow past what they creates more value, leading to increased customer could make at an hourly rate? That’s where the trust, more referrals and recommendations, and best techs will jump at the chance to take 50 solid higher sales. billed hours at a slightly lower hourly rate, over Not to mention the fact that inspections fill the the hourly rate. In other words, when you’re talking to your techs about their incentive-based pay plan, the challenge isn’t how much they make per hour, but rather, “The hours are here – how many can you bill?” The hours your shop produces are available to your techs. They each have control to influence their own hours billed by doing thorough inspections.

Winning Over Resistance Of course, I’ve been around the block enough to know that this isn’t the end of resistance to incentive-based pay plans. More billable hours leading to a bigger paycheck all starts with the technician doing the kind of thorough inspections and write-ups that lead to more billable hours. But a lot of techs push back against the idea of doing thorough inspections and write-ups because they take time – time they’re not paid for. Some really have a mental issue with it. In my shop (and this is what we teach our clients, too) the goal should be to challenge them: Trust us for two weeks and see what happens. When the tech does proper inspections, the customer, the tech, the service advisor

PURCHASING GUIDE 41 pipeline. Work that isn’t sold today will come in Without a measurement system in place, it tomorrow, next week or next month. It keeps the can be a pain in the butt to track. (It’s one of the shop busy, preventing slow days. reasons I created a measurement system.) But You know as well as I do, you can make more for the small amount of time invested in tracking money on three cars than you can on 10. Working the benchmarks of incentive-based pay plans, on three cars with five or six labor items is easier your shop will reap dividends, especially when it and faster than 10 cars with one or two labor comes to the training and accountability of your items. Even though inspections seem like non- employees. It also helps make sure everyone is on productive time, it’s actually the most productive the same page in terms of reaching shop goals. TR time a technician can spend, once they get it through their head. Terry Keller is a shop owner, service writer and By the end of those two weeks, we’ve proven AMI-approved trainer for auto repair shops. He is to the resisters that it’s going to make them also the CEO of Auto Profit Masters and creator of more money to follow our system and perform the RPM ToolKit, which integrates with shop POS thorough inspections – every time. software to help owners identify problems in their shop and get one-click training solutions. Keller can Good for Them, Good for the be reached at [email protected] or Customer, Good for the Shop 303-795-5838. (Good for You!) No matter how good a job your employees are doing now, they can always do better. Techs can do better inspections and write-ups, and service writers can refer more work to the technicians than they’re doing now.

42 TIREREVIEW.COM • NOVEMBER 2016

How to Shop for

Health| Insurance CHELSEA WINEBRENER Editorial Intern KRISTEN CRISWELL | Managing Editor

ith the many different facets of health insurance, shopping for the right kind of coverage can be a daunting task for small business owners. With various policies, regulations and requirements, there is a lot to consider – not to mention the fact that healthW insurance is often the largest expense next to wages for a company.

When considering health insurance options, guide them through the process,” says Scott there are three questions you need to ask Leavitt, president of Scott Leavitt Insurance yourself: and past president of the National Association of Health Underwriters. “Most people have • Am I looking to provide the richest benefit no idea what to do, and agents are trained to for my employees? help.” “In this world today there are new • Am I looking to keep premium costs as low provisions and new regulations coming out as possible? every day and you want to make sure you’re working with someone knowledgeable and • Or am I looking for something in the middle? make sure you’re being taken care of,” he continues. If you’re unsure where to begin answering Carson Frankovits, an insurance broker these questions, seeking outside help is a good with Barrett Benefits Group, also recommends place to start. having some sort of counsel, be it a broker “The first thing a small business should or somebody with experience. Obviously do is look for a licensed professional agent to purchasing insurance for a group of people is different than purchasing insurance for yourself so it’s worth it to have that OBAMACARE AND YOUR BUSINESS extra help to make sure you meet the requirements and get the best plan for your With the passing of the Affordable Care Act (ACA) and new healthcare insurance regulations, larger businesses are required to provide health insurance for their business. employees or face paying penalty fees for not providing coverage – however, there The terms “agent” and “broker” are is a way to avoid the fee. As long as a business provides proof they offered health sometimes used interchangeably, so it’s insurance to at least 95% of their full-time employees (even if a few of them refuse important to be aware of the difference the offer), the business can avoid paying the penalty fee. when seeking an expert’s help. An agent Smaller businesses (those with less than 50 full-time employees) are not required to will typically represent one company, while provide health insurance, and don’t face a penalty fee for not offering it. Instead, a broker will represent several insurance the Small Business Health Options Program (SHOP) offers tax breaks of up to 50% companies. if they purchase health insurance for their employees. When third-party brokers work with The number of employees is now the greatest determining factor for health businesses, their job is to look at the market insurance policies after the passing of the ACA. How many full-time employees and the options in the area of the business, work for a company determines which carrier that company goes to for a quote. then make sure their client is matched with This threshold also needs to be a consideration as you grow your business. the most competitive insurance carrier Health insurance marketplaces (“exchanges”), or websites where individuals and available. Some agents may also take this businesses can shop for health insurance online, have been set up at the state approach. and federal level. Check if your state has set up its own exchange by going to obamacarefacts.com. “All the carriers offer different products, some of them kind of mirror each other, but

44 TIREREVIEW.COM • NOVEMBER 2016 Questions to Ask an Agent or Broker - How long have you been licensed in the industry? - Do you represent more than one company? If so, which ones? - Do you hold any certifications or designations? - How responsive or available are you to answer or questions? - What additional support services do you offer? there are slight variances,” says Frankovits. - Do you have a website? “(A broker or agent’s job is) to make sure that the benefit they’re purchasing is the strongest - What can you offer to my employees? benefit that they can get for a small business’ employees.” - Can you provide references? “Brokers also make sure that the costs are in line with what the market is actually allowing,” Note: he continues. “Sometimes there are some You can find a licensed agent or broker at carriers that price things incredibly high and there are carriers that price things that are very www.nahu.org. competitive, so (you should) kind of marry those things for the strongest benefit with the want to offer health insurance coverage, lowest cost.” Leavitt advises. Is it to attract new employees Brokers and agents will walk small or retain employees? Is it to cut back on sick businesses though the entire insurance process, time? Understanding the goals and incentives looking at the makeup of a company and for coverage can help pair you with the right collecting information required by potential insurance product for your business and your insurance carriers. They will also help with budget. applications and company enrollment. Benefits Package: A business may want to In addition to helping a business shop for consider other insurance offerings at the same insurance, brokers and agents also serve as a time it considers health insurance, including resource for your business, which is included vision, dental and life insurance. in premium prices. They help to conduct Requirements: Businesses with more enrollment meetings with your staff, assist with than 20 employees must also participate in billing questions and work with carriers to COBRA if it decides to offer its employees resolve different claims, Leavitt shares. health insurance. COBRA is a federal law that “Without an agent you’re on your own; lets employees keep their group health plan you’re going to have to figure it out and handle coverage for a limited time after employment that all by yourself,” he says. ends. COBRA also creates other obligations a company may be responsible for, so a broker Questions to Consider or agent can connect you with a Third Party Before seeking assistance from a broker or Administration (TPA) to help meet those independent agent, there are several things to requirements, Leavitt says. consider. Coverage: First is to decide who you want Reviewing Your Options to cover and to what level. Are you providing Since the health insurance industry is ever health insurance for just employees, or evolving, it’s important for businesses to employees and their families? reevaluate your plans annually to make sure Cost: Most states require a business to cover you’re getting the best rates and coverage at least 50% of the premium costs, Leavitt says. available. TR Be sure to account for cost-per-employee per month premiums in the budgets. Strategy: Have a clear idea of why you

PURCHASING GUIDE 45 Creating a Successful Performance Review Plan EMILY BOES | Editorial Intern CARLEY HULL | Associate Editor

mployee performance reviews are While annual reviews are often standard more than a task on a company’s to- practice, you may find that semi-annual and do list to reveal excellent and poor even quarterly reviews may work better for Questions to Eemployee performance. When done correctly, your employees and your business. Ask Your performance reviews should help build “There isn’t a magic number or ‘correct’ Employees: employee/manager relationships and help number of times to conduct performance business owners keep the pulse of their appraisals each year,” explains Brandi - How do you business’ success. Britton, district president of OfficeTeam, an By taking the time to understand what administrative staffing service. “It could think you are your employees are experiencing within your depend on the company, the department, how doing? How business and how they perform in their roles, long the worker has been in the position, staff can you do you are provided with information to help productivity or employee morale.” even better? solve problems and make sure your employees Some employees may need to meet formally are given all the tools to succeed – both of about their progress more often than their - What are which are vital to the success of your business. peers. Based on how long an employee has “It’s no different than raising children. If worked at the company or the specific tasks your future you don’t perform performance reviews, how that a job may require, some employees may goals? What do you know they are doing the things that need to meet with their supervisors more goals have you need to be done?” says Bob Cooper, president frequently. already met? of Elite Worldwide Inc., a company that helps According to industry experts, many shop owners build a successful business managers will often see annual performance - How can the through one-on-one coaching with industry reviews as an administrative task and become experts. more concerned with getting the review done company do “Businesses don’t fail; communication fails,” than actively evaluating employees’ progress. If better? he adds. managers do not take the time that is necessary to provide adequate feedback to their employees - How can your The Pulse of Performance and speak with them about their career goals, manager do To create a performance review plan, you’ll employee performance won’t change. better? want to start with how regularly you’d like to “Reviews that are viewed as administrative conduct reviews. processes don’t tend to provide value or insight,” says Rodney Alvarez, vice president of NEW HIRES talent management at Celtra Inc. and member of the HR Discipline Panel at Society for It is always a good idea to give new hires some extra attention as they Human Resource Management (SHRM). learn their role; therefore, having more reviews at the beginning of their In order to have a successful review with an employment can help managers gauge performance early in the job. employee that is taken more seriously and is Elite Worldwide’s Cooper suggests taking the following actions more thorough, Alvarez suggests conducting within the first 90 days of employment: performance reviews at least quarterly. Semi- First Week: Have a 15-minute “mini review” at the end each day. Simply annual reviews work very similarly. While they speak with the employee at the end of each day to discuss how the job obviously occur less frequently than a quarterly is going and how they did during any orientation programs. review, doing two reviews a year keeps First Month: Have a review at the end of each week. information fresh and allows you time to detect The Months After: Perform a review at the end of each month until the and correct issues with an employee. probationary period has ended and the employee can be added to your For Elite Worlwide’s Cooper, every six company’s regular performance review cycle. months is just the right amount of time to meet

46 TIREREVIEW.COM • NOVEMBER 2016

with employees to spend time talking about the should leave the employee with ideas on how company, the employee and his or her growth to improve performance and a set of goals and goals. to accomplish before the next review. The manager should come out of the meeting with an understanding of the employee’s experience within the business and what needs to be done REVIEW STRATEGIES moving forward. The 50/25/25 Strategy Cooper suggests structuring the process for your sit-down performance review: Documentation • 50%, half of the review is spent reviewing the employee When developing content to discuss and • 25% is spent allowing the employee to review your company include in a performance review, start with • 25% is for the employee to review and give feedback to whomever is what a manager already knows about the conducting the review employee. Performance reviews should be a Task-Based Strategy culmination of the informal discussions taking Alvarez suggests a hybrid performance review model that combines a place throughout the year. When conducting competency-based evaluation with a more objective task-based review. • Have the manager assign tasks depending on the frequency of the review. a review, the manager should have records of • Define the vital competencies for the job. each employee’s awards, accomplishments, • Assess the achievements since the previous review based on the employee’s complaints and reports from previous reviews role and proficiencies. that have been gathered throughout the course of the year. If a review is performed without documentation of an employee’s progress, Conducting the Review important topics that should be discussed may Regardless of how often a performance review be forgotten, resulting in missed opportunities takes place, the primary goal of a review is on both sides of the table. to make sure that an employee and his or her supervisor are on the same track. The outcome Approach Each review must be sincere on both the manager’s and the employee’s side or it risks being demotivating as opposed to constructive. There should be no reason for an employee to think that there is “nothing worth discussing” in a performance review. If this is the case, the methods used to conduct reviews should be modified. In addition, all employees should feel free to approach his or her supervisor about concerns with the performance review process and with status updates about performance throughout their time at the company. “Nothing in the review should come as a surprise; there should be an open environment

Areas to Review with the Employee: - Is the employee meeting customer expectations? - How is the employee’s speed (especially important for gauging technician performance)? Are they getting the job done in a fast and accurate manner? - Compliance and following procedures - Absence and tardiness - Attitude in the workplace 48 TIREREVIEW.COM • NOVEMBER 2016

the employee can provide feedback on their own performance, outline their goals and make HOW TO COMBAT POOR PERFORMANCE suggestions to what the company or manager If you’ve already determined what your employee needs to improve their could do better moving forward. performance but is still falling short, Cooper of Elite Worldwide Inc. suggests Reviews should also be conducted face-to- following the “Four T’s of Managing People”: face, as this interaction gives the manager and Training the employee a chance to truly interact and Transfer into another position exchange feedback. “It gives the manager a chance to assess Tolerate nonverbal cues. It also reduces the potential Terminate for miscommunication and makes it easier to Start with providing a struggling employee with additional training. If that doesn’t foster an open dialogue between the manager help performance, try transferring the employee into another position. If your and employee,” Britton says. employee is still not meeting their performance marks, it is now up to you to either tolerate their under-performance or terminate their employment. After the performance review is complete, the manager and the employee should both understand what changes need to be made throughout the year, where discussions of and what goals should be met. To avoid successes as well as areas for improvement are confusion or misinterpretation of expectations, commonplace,” says OfficeTeam’s Britton. managers should take notes on what was Additionally, Cooper suggests that the discussed during the meeting and email any reviewer should notify the employee at least changes to the original review documents to a week prior to the review and provide them the employee. TR with the paperwork and information up for discussion. Performance review documentation normally includes a self-review form where

50 TIREREVIEW.COM • NOVEMBER 2016

▷ GDI IVD INTAKE VALVE & TURBO Service Products CLEANER Designed to clean intake valves on GDI engines and turbo systems, the CRC GDI IVD Intake Valve & Turbo Cleaner removes carbon deposits in GDI engines where fuel additives don’t reach the intake valves. Easily installed through the air intake system, the cleaner dissolves and lifts deposits from valve stems and tops without labor-intensive top engine disassembly, CRC said. The cleaner is proven to remove up to 46% of carbon deposits after the first hour of use and increases power and torque. crcindustries.com/gdi

△ BEARING PROGRAM ▽ RT-4000 PRO RESET TOOL BCA Bearings has launched a comprehensive bearing program designed exclusively for automotive aftermarket customers. The program supplements The Steelman RT-4000 Pro reset tool, part number 97019, the newly launched BCA wheel hub and bearing line. The aftermarket bearing from JS Products makes it quick and easy to perform program leverages the manufacturing power of NTN, Bower and BCA to allow oil-service light resets after a routine oil change, or a customers to offer quality bearings while covering applications in industries battery reset when installing a new battery. Additionally, from heavy duty to agriculture, BCA Bearings said. The main components of the the tool performs maintenance resets after air filter, brake new line are tapered roller bearings, ball bearings, heavy-duty mounted units, pad service or cabin air filter replacement. The Steelman cylindrical roller bearings and needle roller bearings. RT-4000 Pro features step-by-step instructions on the tool. The tool reads and clears trouble codes using OBDII thebcahub.com and CAN bus protocols on a 3.25-inch backlit screen, and supports 1996 and newer vehicles. A removable SD card is included and the tool is updateable via USB. ▷ AIR HOSE steelmanselecttpms.com The Gates Hybrid Polymer Air Hose is engineered to lay flat. A standard air hose can kink and curl, requiring extra effort to get around the jacks and other equipment. According to Gates, the new Hybrid Polymer Air Hose has zero memory, which makes tire removal and installation easier. The hose can also withstand high temperatures up to 170 degrees F as well as maintain excellent flexibility in extreme cold temperatures, down to -40 degrees F, for the occasional outdoor jobs. Other features include lightweight and extremely flexible construction, superior bend radius and easy coiling after use, the company adds. gates.com

◁ ADVANTAGE BEARINGS ACDelco’s new line of Advantage bearings includes ball bearings, clutch release bearings, hanger bearings, hub assemblies, hub spindle kits, taper bearings and wheel bearings. The bearing assemblies are manufactured with premium steel and feature precision-ground raceways and super-finished balls, multi-lip seal design to protect against water and contaminants, heat-treated bearing races, and advanced lubrication, ACDelco said. The Advantage line is backed by a 12-month/12,000-mile warranty, or 24-month/24,000-mile when installed by WIRELESS BATTERY SYSTEM qualifying members of the ACDelco Professional Service △ Center program. TESTER acdelco.com Snap-on Tools’ new Snap-on EECS550 Wireless Battery System Tester eliminates the need for a second ▷ BRAKEMATE technician. Using the tool, a technician can move around The BrakeMate Brake Maintenance system a vehicle with the main module communicating via is designed to service heavy vehicle brake Bluetooth to the monitoring unit connected directly assemblies and reduce manual lifting of to the vehicle battery, Snap-on said. With this setup, a the caliper, hub and rotor. According to second tech to perform on-screen commands and help BrakeMate, the tool can minimize service time with starting or revving the engine is no longer needed. and save money and is great for servicing a The EECS550 works on standard AGM, GEL and EFB bus, truck or trailer safely. The rotating service batteries and detects discharged batteries down to table is set at an ideal work height, and the one volt. Additionally, the tool comes with a two-year rotor and hub can be realigned safely and warranty. efficiently, the company said. snapon.com vischeck.net 52 TIREREVIEW.COM • NOVEMBER 2016 Tire Service Products ▷ SWING ARM TIRE CHANGER ▽ RIM CLAMP TIRE CHANGER Bosch’s swing arm center-post tire changer, Hennessy Industries Inc.’s Coats RC Series Rim Clamp the TCE 4295, combines tire changer is designed for high-speed, general the efficiency of a service repair shops, Hennessy said. The RC Series traditional swing arm features two different models, the RC-55 and the with the versatility of a RC-45. Built upon the same compact , the modern center-post to difference between the units is the articulating RC handle nearly any wheel Robo-Arm, which is only available on the RC-55. The and tire combination RC Robo-Arm keeps the top bead in the drop center safely, Bosch said. during mounting, allowing technicians to efficiently The TC 4295 offers a change difficult wheel applications, such as low-profile clamping capacity of up wheels and run-flat tires commonly found on many to 47 inches in wheel OE vehicles. Both models will come standard with a diameter and 15 inches high torque x-shaped turntable, a manual swing arm in width. Additionally, the and the option for an air or electric motor. changer features an Ergo coatsgarage.com Control hand-actuated bead breaking system and helper arm system ▽ FLUSH MOUNT QUICK TREAD with bead depress Hunter Engineering Co.’s Quick Tread system is now device and dual-height available in a new flush mount design. The drive- bead rollers. The electric through inspection system features a new weather- turntable TCE 4295 runs resistant, dust-proof and embedded control box, on 110-volt power. that acts as the brain of the Quick Tread system. The boschwheelservice.com system automatically measures the tread depth of each tire in seconds by capturing 280,000 data points across a two-inch segment of the tire, and creates a three-dimensional model of the customer’s tire that can be presented in a digital or paper report. The system is powered by Hunter’s WinAlign software and no Internet connection is needed to process measurements. There are also no recurring monthly subscription fees. hunter.com/demos

▷ BALANCING COMPOUND The new larger Magnum Plus Tire Balancing compound provides a 25% ◁ AUTOMATIC WHEEL LARGER faster and smoother, high WASHER performance internal Martins Industries’ automatic wheel washer balance, said Magnum. (MWW-660) washes tires and wheels with The product’s larger high pressure rotating jets, continuous fresh microbeads maintain water and ecofriendly detergent. According the same quality and to Martins, the automatic wheel washer durability expected from will keep tires and the shop clean while the original Magnum Plus providing a quality service to customers. In Tire Balancing compound, about 120 seconds or less, the MWW-660 but have been updated to offer a smoother transition will clean brake dust, mud, grease and dust, to position due to the decreased overall surface area the company said. Using the tool costs of the microbeads. This same decrease in surface area about $0.77 per wheel, including everything also creates a marked reduction in static between the necessary to wash your tire (water, microbeads and the inner liner of the tire, accelerating detergent, electricity, air and labor). their movement into position as the tire’s balancing requirements change. martinsindustries.com magnumbalance.com PRODUCTS 53 TPMS Products

▷ X-TRA SEAL SMART SENSOR The X-tra Seal Smart Sensor offers both rubber snap-on and aluminum clamp-in valve options that are easy to learn and use. A full-service diagnostic/programming tool with OBDII capability, the Smart Sensor Pro+ Tool can copy/clone a sensor, and updates are free for life. Two sensors cover more than 95% of vehicles with TPMS. The Smart Sensor is a fully programmable blank sensor and can by used for diagnosing TPMS issues as well as relearning the vehicle’s TPMS system. The Smart Sensors, Smart Sensor Pro+ Tool and OBDII Module are all backed by a two- year warranty. The Smart Sensor is supported by 31 Inc. and the X-tra Seal TPMS Network, training and support. 31inc.com | tpmsnetwork.com ▷ LAUNCH TECH UNIVERSAL TPMS TOOL ATEQ VT36 ▷ Launch Tech USA’s new universal TPMS The Ateq VT36 from Ateq activation and sensor-programming tool – TPMS Tools lets service the Launch TSAP-1 – reads and activates all providers activate and OE TPMS sensors and programs universal display all sensor data aftermarket sensors. The TSAP-1 also in seconds, program checks tire pressure in seconds, displays all leading universal all available sensor data (ID, PSI, MHz, tire aftermarket sensors, elect temp, and battery life), and provides vehicle vehicles by make model year selection and replacement sensor part look-up, and search sensor number look-up. For operations that require replacement part numbers. an OBDII tool, the TSAP-1 can be used with The tool also features an a Launch Pro Line Scan Tool. The tool is easy-to-read display with also Ti-lingual and comes with two years of adjustable backlight, user- software updates and a warranty with free friendly navigation and call center support. ▽ BARTEC command buttons, frequent launchtechusa.com database updates via PC desktop software, and the TECH200PRO interface in 19 languages. According to Ateq, the Bartec’s Tech200Pro is VT36 is affordable and enables shops to reset 100% the first tool of its kind of Direct Type Non-OBDII relearned vehicles. that integrates TPMS ateq-tpms.com sensor testing and activation with tread depth measurement and tire pressure checking. ▽ HUF INTELLISENS APP The stand alone device, is an ideal solution for Huf North America Automotive Aftermarket’s Huf test-before-you-touch Intellisens App with HC1000 simplifies the way challenges, Bartec adds. TPMS is serviced. With the use of an iOS or Android ORANGE ELECTRONIC The Tech200Pro comes smartphone or tablet and a wireless adapter △ with a wall mounted, (HC1000), the technician can easily diagnose and PROGRAMMABLE TPMS SENSORS inductive charger and program the Huf Intellisens universal sensors. As quick-connect air fitting, Orange Electronic’s Simple Sensors are two a cloud-based solution, all vehicle data is always and features full TPMS programmable TPMS sensors that cover 98% of updated instantaneously, which eliminates manual sensor capability to vehicles on the market. Simple Sensors can be software updates by the user. Relearn procedures and test sensor function, programmed by ID copy, which allows technicians troubleshooting are also available without the need to status, fitment, and to bypass the vehicle’s relearn procedure, or by go to another source. pressure. A detachable selecting the MMY of a vehicle. According to Orange “air hose/chuck” to intellisens.com Electronic, the rubber and metal interchangeable measure “stick” pressure valve stems reduce inventory and increase profits. is also available. All Utilizing Orange Tire Orientation, Simple Sensors data collected from can identify direction and locations on many vehicles the vehicle is sent via equipped with auto relearn technology. Orange wireless Bluetooth to a Electronic’s OPSSll programming tool or any of the shop’s PC or workstation. industry leading TPMS tools can be used with the sensors. Simple Sensors can be programmed multiple bartecusa.com times before or after installation. orange-electronic.com

54 TIREREVIEW.COM • NOVEMBER 2016 ▷ VEZDA UHP A/S KR400 Kenda USA’s Vezda UHP A/S KR400 tire offers Tier Tires 1 performance at a Tier 3 value price, Kenda said. Developed at the new Kenda American Technical ▷ SUMITOMO Center in Green, Ohio, the tire offers strong wet and winter performance and is eligible for Kenda Traction ENCOUNTER HT Rewards and Co-Op with distributor managed trade The Sumitomo Encounter areas for retailers, the tiremaker adds. The tire is HT offers dry pavement available in 43 popular sizes that cover more than handling combined with 85% of the UHP North America fitments. sure-footed wet-traction kendatire.com performance, the company said. Its noise-reducing tread design and smooth, OPEN COUNTRY C/T stable ride make it the ◁ ideal all-season CUV, SUV, ’ Open Country C/T offers a commercial van and pickup highway grade tire for light truck vehicles. Developed for tire, Sumitomo adds. Featuring a sturdy five-rib balanced on- and off-road work, the tire’s tread design and durable construction, the Encounter HT design and tough construction deliver long tread tackles both the daily commute and the open road. life and traction in gravel, mud and snow, Toyo said. Additionally, the tire is designed with an extended The Open Country C/T provides a quiet, comfortable mileage tread compound and comes with a 60,000- highway ride and is backed by Toyo’s No Regrets mile treadwear warranty for metric and LT sizes. 45-day, 500-mile trial offer, the tiremaker adds. The Sumitomotire.com tire also features the Three-Peak Mountain Snowflake symbol and is available in sizes for 16-, 17-, 18-, and 20-inch rim diameters, in load range D and E, and speed rating Q. ◁ N’PRIZ AH5 toyotires.com Nexen Tire Corp.’s N’Priz AH5 is a standard touring all-season tire ◁ GT RADIAL GDL651 FS designed to provide comfort and 50,000-mile The GT Radial GDL651 FS from Giti Tire treadwear mileage. The (USA) is a versatile, low-cost-per-mile drive tire features four wide axle tire designed for long haul applications. longitudinal grooves The new compound and tread design reduce that improve drainage while providing improved performance; a rigid fuel economy, high-speed performance and shoulder block design resistance to irregular tread wear, plus long to enhance cornering, tread life and retreadability, Giti said. handling and a quiet gtradial-us.com/en/ comfortable ride; and a dual kerf design to enhance block stiffness ▽ KRUZER ◁ RUFF DAWG R4 and mileage, Nexen said. The tire is available Vee Rubber’s Kruzer tire The Ruff Dawg R4 construction tire is designed with in 24 sizes and comes for SUV and light truck hard surface backhoes in mind while performing well with Nexen’s Total vehicles features non- on standard applications, Dawg Pound Tires said. The Coverage Warranty. directional tread design tire offers puncture protection in even the most rigorous Additionally, the tire is and four circumferential conditions and the tread design significantly reduces eligible for rewards on grooves. Additionally, vibration for improved ride quality, the company adds. the Next Level Associate the tire offers a constant Dealer program. contact design and pitch dawgpoundtires.com variation, Vee Rubber nexentireusa.com said. The tire is available in sizes for 18- and 19- ▷ GEOLANDAR A/T G015 ▷ 595 RS-RR inch rim diameters. Yokohama Tire Corp.’s Geolandar A/T G015 all-terrain Federal Tire’s 595 RS-RR offers veerubberus.com tire offers durability and improved traction for SUVs innovation and performance and full-size pick-ups on for motorsports racing, the any surface and in any tiremaker said. The tire features weather condition, including flame-pattern sipes and newly snow, the tiremaker said. developed compounds, as well as The G015 features the an aggressive profile. According mountain/snowflake to Federal Tire, the tire delivers symbol and is available in extraordinary handling, cornering 60 LT and P/E metric sizes, and endurance. with Yokohama’s 30-day federaltire.com/en/ trial Performance Promise guarantee. yokohamatire.com PRODUCTS 55 Software Products

▽ PREMIUM DIRECTORY ▷ TEXT MESSAGE MANAGEMENT ALERTS TCS’ Premium Directory ASA Automotive Systems has Management puts updated is TireMaster and your business on the TireMaster Enterprise software map and your products to include text message alerts. and brand messages TireMaster and TireMaster Enterprise in front of consumers, allow tire dealerships to schedule so you can sell more text and email alerts for appointment products and services, confirmations, “ready for pickup” said TCS. Featuring alerts, missed appointment Real-Time Sync with scheduling reminders and special more than 50 directories and navigation channels, offers for declined services, ASA said. the system gives dealers access to review monitoring asaauto.com and reporting in 19 directories, exclusive clickable promotions in 47 directories and real-time access to the directory listings dashboard. Additionally, users can use the system for Google My Business setup and optimization, as well as monthly monitoring and duplicate suppression. tcstire.com

▽ SHOP MANAGEMENT SOFTWARE AutoFluent Tire Shop Management Software has helped tire dealers run their businesses for more than 15 years. It allows tire dealers to view up-to-date pictures and specs of tires with Tire Atlas. MyCARFAX decodes VINs and plates, giving customers service history and alerts for maintenance due at a dealer’s shop. Additionally, the system provides custom digital vehicle inspections, DOT registration, a tire fitment guide, fleet management, and tire and part ordering to increase accuracy and efficiency, AutoFluent said. The AutoFluent support team is also available for additional support. autofluent.com

Tire Dealer Software

56 TIREREVIEW.COM • NOVEMBER 2016

TPMS

BRAKE & FRONT END MAGAZINE

Winter Tires and TPMS Making the seasonal switch

HE TIME TO CHANGE TO AND FROM SUMMER to winter tires is both a regional and personal decision. Whenever it takes place, a changeover brings with it a need for consumers to make some decisions. The decision to purchase or not purchase a second set of wheels needs to be followed with Tquestions about TPMS sensors.

Selling a second set of TPMS sensors can would never recommend any consumer be very profitable. There are also several eliminate sensors,” Paul Wise, Schrader more options for sensor service today International’s director of product ■TAKEAWAYS than were available just a few years ago. line management and marketing, Performing changeovers can decrease emphatically states. “TPMS is a > Not installing TPMS the time for your return on investment legislative-mandated, safety-enhancing, sensors during a tire for the equipment you have purchased to OE-based system that can save lives. It changeover could be seen service TPMS equipment. has multiple benefits, including safety as a violation of U.S. motor Sean MacKinnon, TIA’s director fuel savings, and reduced environmental vehicle safety codes of automotive training development, impact.” > TPMS changeovers can strongly recommends installing new Wise says TPMS should always be on speed the ROI on sensors for the winter tire set. a customer’s vehicle, regardless of if and purchased TPMS However, if a decision is made to when he or she changes over to winter equipment switch OE sensors to the aftermarket tires. “The accident and fatality statistics winter tire wheels, MacKinnon suggests due to low tire pressure are significant > If the same sensors are used for both tire sets, a installing a new TPMS service pack to and well-documented, and they need to TPMS relearn procedure ensure proper sensor operation and an be shared with drivers.” may be necessary air-tight seal. “Exposure to road salt and MacKinnon agrees, stating that the other ice-melting chemicals takes its toll practice of excluding TPMS sensors > Check the if the  on TPMS components,” he says. from a wheel assembly during a tire TPMS warning light is on; changeover could be construed as a the full-sized spare could Of course, there are customers be equipped with a fifth tempted to completely omit TPMS direct violation of U.S. motor vehicle TPMS sensor sensor installation, effectively disabling safety codes. a safety feature of the vehicle. “Schrader

58 TIREREVIEW.COM • NOVEMBER 2016

Changeover Challenges There can be certain difficulties with some vehicles when using the same sensors on summer and winter wheel assemblies. Wise cautions that a TPMS relearn procedure may be necessary if the same sensors are used for both tire sets, but their positions on the axles change. As always, training for tire technicians is important. MacKinnon says TIA’s Certified Automotive Tire Service training program provides in-depth TPMS information, including sensor and service pack installation guides, relearn procedures, tools and troubleshooting. “Using a handheld TPMS scan and MacKinnon reminds shops that a If the customer wishes to switch the OE sensors to winter tire wheels, experts programming tool, test each tire for TPMS relearn fee is becoming more suggest installing a new TPMS service sensor activity,” he says. “Test results common, especially if the customer pack to ensure proper sensor operation will indicate if any changes are needed has not made a major purchase at the and an air-tight seal. to the customer’s setup of the winter service location. At this time, it’s rare to tires. The technician can then inform find vehicles with on-board computers the consumer of the proper service capable of tracking two different SUVs and minivans, according to steps that can ensure a successful sets of tires’ TPMS information. This MacKinnon. changeover.” feature, however, is found on several Some replacement sensors can be and fitted with rubber snap-in valve stems

60 TIREREVIEW.COM • NOVEMBER 2016

that provide further protection against winter road salts and materials that normally corrode aluminum valve Rubber snap-in valve stems. stems provide added protection against Of course, this time of year brings road salts that more glowing TPMS warning lights corrode aluminum as cold temperatures cause a drop in valve stems. tire pressure. MacKinnon reminds technicians to check the spare tire since an increasing number of vehicles with full-size spares are equipped with a fifth TPMS sensor.

TIA’s Certified Automotive Tire Service training program provides in-depth TPMS information, including sensor and service pack installation guides, relearn procedures, tools and troubleshooting.

Back to Summer Sooner or later, the threat of snow will end and the switch to summer tires will begin. The same changeover process will take place. The vehicle may require a system relearn, and the TPMS should be inspected depending on what type of services take place during the seasonal exchange. If a consumer refuses the service, many locations are opting to decline the business. Should a consumer choose to buy winter wheel-and-tire assemblies and the vehicle is TPMS- equipped, the service location should require the customer to implement TPMS for the winter tire set. TR

62 TIREREVIEW.COM • NOVEMBER 2016

VEHICLE SERVICE

ANDREW MARKEL Contributing Editor

Loaded Calipers Installation guidelines

ALIPER REPLACEMENT IS OFTEN THE BEST course of action to ensure that a braking system Caliper replacement often goes hand- in-hand with replacing brake pads, but will perform at an optimal level in terms of safety, isn’t always necessary. performance and maximizing brake pad life.

There are a bunch of small reasons to Just changing the pads and not the recommend caliper replacement: rubber calipers won’t be a disaster, but after a C boots, seals and gaskets that wear down, few pad changes, uneven pad wear will dry up and eventually crack, leading to a accelerate and can cost the customer leaking caliper or seized caliper bracket; more in the long run than if the calipers deicing salt or salty sea air corroding were replaced originally. ■ TAKEAWAYS cast-iron calipers and causing premature If you determine that both the pad piston failure; and a lack of lubricating and caliper need to be replaced, loaded grease causing mounting brackets to calipers can provide a significant savings > Look at brake pad wear seize and creating excessive brake noise, in service time while adding consistency patterns to decide if caliper to name a few. to the brake job and abating questions replacement is needed Is brake pad replacement by itself about processes, components and > Loaded calipers can enough to require caliper replacement as lubricants. provide significant savings well? This service strategy isn’t always The only thing that’s not included when replacing both the necessary or desired by the customer, but with a loaded caliper is the meticulous brake pad and caliper some manufacturers argue it’s the best touch of an experienced technician. > Flush brake fluid before course of action mechanically to ensure That’s where you come in. caliper replacement even braking and maximum pad life. Below are some caliper replacement Looking at brake pad wear patterns will tips from today’s top manufacturers > Avoid cross-threading with  reveal the story: and remanufacturers of loaded calipers. hand tools Missing a couple of these installation • Outboard pad wear likely means service items could turn a simple caliper slides or mounting pins are not replacement into comeback. functioning properly; 1. Flush brake fluid before replacement. • Tapered wear (horizontal or vertical) Analysis of calipers sent back on indicates worn caliper bushings or warranty for defect claims have shown defective mounting hardware. that many actually were perfectly fine. The defect claims were the result of

64 TIREREVIEW.COM • NOVEMBER 2016

4. Wetness around the piston boot may be OK. Many caliper manufacturers today use a special assembly fluid that aids piston installation into the hydraulic seal and/or provides corrosion protection between the dust boot and seal. This is a change from years ago, as wetness around a caliper boot always used to indicate a leaking hydraulic seal — and it still may — but it could very likely be assembly fluid.

5. Avoid cross-threading with hand tools. Using air tools to start could get you in trouble. Hand-start fittings while making sure they stay straight. Calipers made from Inspect the entire brake system. Seal leaks, aluminum also use fine brake hose inlet threads, the combination of damaged castings and worn-out hardware will be which makes it easy to cross-thread or completely strip the threads corrected with a replacement caliper, but there are when connecting hydraulics. Most still plenty of other factors that can impact the aluminum 10 mm x 1 mm threads performance of that new replacement. have a max torque spec of 18 ft.-lbs. 6. Replacing both calipers? Some manufacturers advocate replacing the brake fluid flush. Technicians check that all metal-to-metal contact both calipers in order to deliver the were replacing the calipers first and points have a thin film (more is not best braking result and assure all then flushing the old, contaminated better) of moly- or ceramic-based related components are functioning fluid. This dirty fluid then settles in paste before installation. Areas that the same at both wheels, which the new caliper seals and pistons, benefit from brake lubricants include then maximizes brake pad life. If causing leaks or a sticking condition places where the pads contact the the other caliper is in perfectly good within only a few months. caliper outer ears, at the piston face, condition and operating correctly, as well as where they contact the pad replacing just the one caliper is fine, 2. Inspect the entire brake system. clips. A small dab under pad clips but the other brake pad should be Seal leaks, damaged castings and that contact calipers and brackets replaced to keep even friction side to worn-out hardware will be corrected can reduce chances of “rust jacking” side. TR with a replacement caliper, but there later on. are still plenty of other factors that have an effect on the performance of that new replacement caliper. Also, Denying Credit on a Caliper Core check for worn vehicle mountings or The fundamental goal of the remanufacturing industry is to reuse the “core” suspension components as they will components in order to keep costs down and reduce the overall amount of cause the replacement caliper to fail raw materials and energy that would be required to make the same part new. if they’re not replaced or repaired. But what constitutes the “core?” According to one remanufacturer, common reasons to deny core credit on calipers include: 3. Apply lubricant when necessary. Loaded calipers will often include • Stripped or damaged threads (beyond reasonable repair) the proper lubricants, but pre- • Broken or cracked castings or brackets lubricating every area that needs it • Missing critical parts (like pistons, brackets, e-brake levers, etc.) as much as they need it would be too messy to package. So, double • Broken bleeders (sometimes)

66 TIREREVIEW.COM • NOVEMBER 2016

CommerceConnect

CommerceConnect

A NEW GENERATION OF ® BEAD BAZOOKA BB9LM CommerceConnect

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68 TIREREVIEW.COM • NOVEMBER 2016 For CommerceConnect Advertising Information Contact: Jennifer Hazen at 69 330-670-1234 x-224 70 TIREREVIEW.COM • NOVEMBER 2016 For CommerceConnect Jennifer Hazen at Advertising Information 330-670-1234 x224 Contact: [email protected] ADVERTISER DIRECTORY Sponsored by

ADVERTISER PAGE ADVERTISER PAGE

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Babcox Media Inc. Bill Babcox, President 3550 Embassy Parkway Akron, Greg Cira, Vice President, CFO Ohio 44333 John DiPaola, Vice President 330-670-1234 www.Babcox.com Beth Scheetz, Controller In Memorium: Edward S. Babcox (1885-1970) Founder Tom B. Babcox (1919-1995) Chairman

TIRE REVIEW (ISSN 0040-8085) (November 2016, Volume 116, Number 11. Published monthly by Babcox Media Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, FAX (330) 670-0874. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to Tire Review, 3550 Embassy Parkway, Akron, OH 44333. A limited number of complimentary subscriptions are available to individuals who meet the qualification requirements. Call (330) 670-1234, ext. 242, to speak to a subscription services representative or FAX us at (330) 670-5335. Paid subscriptions are available for non-qualified subscribers at the following rates: U.S.: $69 for one year. Canada: $89 for one year. Canadian rates include GST. Ohio residents add current county sales tax. Other foreign rates/via airmail: $129 for one year. Payable in advance in U.S. funds. Mail payment to Tire Review, P.O. Box 75692, Cleveland, OH 44101-4755. Visa, MasterCard or American Express accepted. Founded in 1901. © 2016 by Babcox Media Inc. “Tire Review” is a trademark of Babcox Media Inc., registered with the U.S. Patent and Trademark office. All rights reserved. Publisher reserves the right to reject any subscription that does not conform to his standards or buying power coverage. Advertising which is below standard is refused. Opinions in signed articles and advertisements are not necessarily those of this magazine or its publisher. Diligent effort is made to ensure the integrity of every statement. Unsolicited manuscripts must be accompanied by return postage. ADVERTISING DIRECTORY 71 Dealer Profile OUD TO B PR E A MILLIS LOCALLY OWNED Owner Action Tire I ANDN OPERAT D ED E R P LE by Carley Hull E A ND E WOLFE ENT TIRE D

“Business Person of the Year.” “It’s the hardest business I’ve ever It wasn’t until 2012 that Wolfe added had in my life, to be honest with you,” Independent Tire Dealer to his list of job says Wolfe. “It’s a lot more stressful and titles when he bought a closed tire shop harder to make everybody happy.” with three partners. “In the tire business you really, really “Mainly it was something related to have to have great employees like I what I was already doing,” Wolfe says have now. They’re the ones that make when deciding to start a tire dealership. everything go for you and they take “I just wanted to expand my horizons.” care of you when you can’t be there,” In February 2014, Wolfe bought out he adds. his partners to become the sole owner of Wolfe depends a lot on his 10 tire Action Tire and got to work making the shop employees, who he says are like business what it is today. He hired more family. experienced employees, upgraded the “I’m really proud of the employees equipment, renovated the office space I have,” he says. “We’re all a team and and started working with more fleets in it takes all of us to make everything addition to retail customers. work.” “Trying to provide a good tire Wolfe also made sure his newest Photo by Jackie Burton | Click in Time Photography service and a garage for the community business gave back to the community means a lot to me,” says Wolfe. “I try by frequently supporting local groups, he entrepreneurial spirit is an innate to provide a great place for employees helping people in need, participating in force found in independent tire to work and make it better for people the chamber of commerce and doing a T dealers and Millis Wolfe is fueled around me.” lot of good deeds not attached to him or by it. the Action Tire name. The owner of Action Tire in Grayson, “I don’t want recognition,” Wolfe Ky., first became an entrepreneur as a says. “I want somebody to be helped.” junior in high school when he bought “I’m really proud of Action Tire’s customer service a truck and some junk cars and began the employees I have. philosophy is simple: Treat people the operating a wrecker service. Little did way you would want to be treated. he know, the business he called a “bad We’re all a team and it Going above and beyond what habit” 30 years ago, would grow to be customers expect includes offering very lucrative. takes all of us to make free pick-up and delivery of customer Today the business mogul operates everything work.” vehicles, a parts and labor guarantee two wrecker services in Grayson and making use of the wrecker service and Green, owns rental property, to wait on cars being towed for service, operates a used parts business and is to get back to customers as soon as also a 42% owner of a fitness center The tire business proved to be very possible. in Grayson – which means working different than his other businesses. “I’m just a down-home country boy, for the community of Grayson is now While Wolfe is able to be very hands- that’s all,” Wolfe adds. “Just trying to a 24/7 job. All this hard work hasn’t on in the wrecker business, he’s found make things better in life for me and the gone unnoticed. In 2015, the Grayson that the power behind a successful tire people around me.” TR Chamber of Commerce named Wolfe dealership is its employees.

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