Volume 22 • Issue 5 • May 2020
Chartered May 16, 1988
The Used Truck Association INDUSTRYWATCH
Sales Strategies to Use During
COVID-19 Contents by George Papp, 2 Board and Committees George Papp Training and Consulting 2 Quips & Quotes ost of us have never faced a pandemic of this 3 Board News & Views Mmagnitude and hopefully we won’t again. 4 Face to Face with Robyn Penland: Part 2 I must come clean and say upfront that what you 5 The 2020 Board of Directors and are about to read is based on gut instinct and LTA Nominations: UTA Strong! common sense. I hope it helps you stay focused and in the game. 6 An Update for UTA’s Members My instincts tell me that now’s the time to focus on customer retention. I usually preach Prospecting, 7 Industry Events Calendar Prospecting, and more Prospecting but I think for the next few months you should shift your focus to your existing customers. Your goal is not to sell but to show support using a consultative approach. 7 UTA Events Calendar Remind them that your parts and service departments are working hard to keep customer trucks on 8 Welcome New Members the road. If it's a local customer, ask them if you can be of help to them, for example by delivering 8 In Memoriam: Don Tatum (1936-2020) parts or helping with tech support. Your customers will appreciate support in this time of need. 9 Doug’s Morning Coffee: The 80/20 Rule If you have an opportunity to make a presentation you will need to get creative. COVID-19 is forcing 10 Convention Committee Update businesses to cut back on travel and in-person meetings. That means web-based presentations are more important than ever. Start repackaging your sales presentation into a full-blown virtual pre- 11 UTA and Commercial Truck Trader’s sentation. Sharpen your PowerPoint skills and walk/write yourself through your sales process. You Virtual Marketing Webinar will be surprised what a good learning experience this will be for you. You may even uncover some 12 Women In Trucking: flaws that will allow you to tweak your selling process. #SteeringTowardKindness
Be ready to get creative and keep your sales advancing by doing things that you are not accustomed to. 13 Book Excerpt: Such as: The Leader You Want to Be, Part 1 » Taking your client on a virtual floor tour of your dealership (using FaceTime or mobile conferencing apps) 14 How Truck Dealers Can Meet Today’s Challenges » Doing an in-depth product walk-around tour 16 J.D. Power Valuation Services Update » Sending your client a YouTube video of your product or solution in action, and then talking through it via web conference while watching the video together 18 Industry News Briefs
Think creatively and think out of the box. Don’t worry if you can’t be there in real life. Your virtual 20 Brooks Tip of the Month tours will get the job done. 21 Photos from the 2019 Convention
Continued on page 8 22 From Where We Sit
1.877.GETS.UTA • WWW.UTA.ORG 2020 USED TRUCK ASSOCIATION BOARD OF DIRECTORS & COMMITTEES www.uta.org/directory
Craig Kendall President Convention Committee Amy Shahan Vice President Chair – Terry Williams Terry Williams Secretary Co-Chair – Hal Dickson Brandon Hess Treasurer Brock Frederick Willie Boyle Dealer Group & Preferred Partners Jay Burgess Chair – Jay Burgess Hal Dickson Co-Chair – Willie Boyle Co-Chair – Rocky Carden Joe Feco Amy Shahan Michelle Ober Bobby Williams Tim Ronan Mike Roney Elections Committee Chair – Doug Shields Doug Shields Co-Chair – Charles Cathey Jody Johnson Rocky Carden — Alternate Finance Committee Chair – Brandon Hess Executive Advisors Marty Crawford Charles Cathey Ronnie Jordan Marty Crawford Craig Kendall Dean Jeske Marketing & Website Committee Ronnie Jordan Chair – Craig Kendall Robert Yost Co-Chair – Terry Williams Hal Dickson OEM Advisors Doug Shields Brock Frederick Membership Committee Jeremi Guditis Chair – Mike Roney Bo Johnson Co-Chair – Michelle Ober Joe Feco Scholarship Committee Chair – Dean Jeske Co-Chair – Tim Ronan Rocky Carden Training Committee Chair – Amy Shahan Co-Chair – Jody Johnson SHARE YOUR NEWS Young Members Committee with the UTA Industry Watch. Chair – Victoria Lombardo Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp c/o Sentry Management 303 Corporate Center Drive, Suite 300 A Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882) Fax: 770-454-0029 [email protected] Twitter: @usedtruckassoc “Do you want to know who you are? Facebook: Used Truck Association Don't ask. Act! Action will delineate Management: and define you.” Misty Reis, [email protected] - Thomas Jefferson Art Direction/Graphic Design: Laura Carter, [email protected] www.lauracarterdesign.com
2 Commercial Truck Drivers— Our Industry’s First Responders
s the Global Pandemic continues to spread it is vital for all of us to learn what we truly value A in the world to weather this horrific storm. This pandemic will eventually subside. But it is bittersweet and historically true, that when an individual or community (and in this case all of humanity) has so much taken away, then the clarity of what is most important comes into focus. We come to appreciate one another and the precious time we have to spend together. With that clarity we can begin to fight for one another.
The selfless acts of first responders laboring to help others despite the dangers to themselves is the first and brightest indicator that humanity will prevail. Knowledge is power and sometimes we need to be hit with knowledge like a brick. Only then can we really see those men and women around us who do these jobs every day and how incredibly important they are to us all.
I have heard it said many times in this business: “Everything, I mean everything that we have has made its way on a truck at some point.” It takes a very special person to haul freight across our country. It is not a job for the weak of heart. To work as a commercial Truck Driver shows a work ethic that rivals most. The courage to jump into traffic with 80,000 lbs. of much-needed supplies while navigating people texting in cars while turning into the truck’s lane is amazing.
I am by no means taking away from the heroism of our Police Forces, Fire Fighters, military, or Health Care Professionals. But let’s not overlook those people in the seat of commercial vehicles as an important part of our lifesaving equation. It is much easier for those in the trucking busi- ness to see that without a driver behind the wheel of a commercial vehicle our econo- my really would shut down. However, outside our industry most consumers under normal conditions are oblivious as to how food, water, medicine, clothes, fuel, building supplies, tech equipment and devices, medical equipment, or anything else gets from A to B. That is, until that consumer goes to their local supermarket to find those things are no longer on the shelves.
When the shelter-in-place policies started nationwide, and businesses were asked to close unless they were deemed “essential,” no one really thought about how that would affect the supply chain. With highway rest stops, restaurants, hotels, truck stops and some fuel stations closing their doors or limiting their hours Commercial Drivers were cut off from what they needed to make it from A to B. This became newsworthy because it started to affect us all. OOIDA’s President and CEO Todd Spencer said it best: “Truckers are risking their lives to deliver critical supplies.” The media agreed. Consider the title of a recent USA TODAY article: Truckers brave coronavirus outbreak to deliver goods. “If we stop, the world stops.”
These news stories have given our commercial truck drivers some much-needed positive press. People are putting faces to names as to who they are and what they do. That spotlight is starting to win the commercial truck driver some cheers and with it some big support.
In a recent Land Line article, author Mark Schremmer said that the FHWA (Federal Highway Administration) is stepping in to help with what had become a big challenge—drivers getting access to food. “The FHWA issued…a notice to state departments of transportation that the agency was ‘suspending enforcement’ under the federal-aid highway program for states that choose to permit commercial food trucks to operate and sell food, in accordance with state laws, in designated federally funded interstate highway rest areas.”
As more people are learning about what commercial truck drivers do and how they are often taken for granted, there has been growing support from people everywhere. From small town families donating food to drivers on their way through town, to people offering places to stay because the driver has completed his 10 hours but is without the usual rest stops, a new-found appreciation for commercial drivers is evolving. Many would agree that this is justifiable and long overdue.
Being part of the trucking industry and working directly with those men and women behind the Mike Roney wheel of commercial trucks, I understand what an important and difficult job they have distrib- Membership Committee Chair uting our country’s products where they are needed, especially during this pandemic. I ask all [email protected] UTA members to help people outside our industry continue to understand and appreciate the people behind the wheel. And to our industry’s first responders, Thank You. n
3 WITH Robyn Penland PART 2
ast month we shared the Assistant Manager for an apart- for several months. “This was a L story of Robyn’s seven-year ment complex that required huge accomplishment to not only career in trucking and her shift to managing logistics and customer be a successful female salesper- a sales position just three years care, too. And as for her stated son, but to rank among the top in ago. Robyn, as you recall, is in disadvantage, she addressed that sales,” she recalled. pre-owned sales with Bruckner as one would no matter what Although she is generous in her Truck Sales in Fort Worth, challenge is ahead. gratitude for the support and TX. This month, we’ll “The way I look at my disadvan- experience she’s gained through- share with you details tages in the industry is to make out her sales career, she still takes of how she’s been those the reasons I will work great pride in the relationships able to enjoy great harder and put in more effort,” she can create with her customers success within a Robyn said. When she first joined and the referrals they bring to her traditionally male- the industry, she felt the need to as a result of their great experi- dominated industry prove herself worthy of the ences. In just the short time her and market. Much of opportunity she’d been given. “I career has taken her into sales, what she shares will jumped headfirst into getting my she’s learned some valuable apply to anyone who Class A CDL.” When it comes to lessons. “Opinions are only as is looking to find work, Robyn does what she needs good as the facts standing behind success in truck sales, to do to get the job done. Although them,” Robyn explained. and much of it will customer service comes second “Throughout the trucking indus- seem familiar to nature to her, she continues to try, you will find many opinions anyone trying to devote herself to learning about being thrown around as facts. You carve any new career the industry. It’s part of her drive must put the research into the path. to provide excellent customer opinions you are going to person- “I have taken a leap service. “I continue to use every ally develop.” She used the rapid into a male-dominat- opportunity as a learning experi- changes in technology and ed industry, and it ence,” she said. “Having the equipment as an example. “Being has been the most knowledge and being familiar with up to date on past and new fulfilling position I have ever what I am selling before customers equipment will put you in a better held,” she said. “I remember when begin to ask questions, helps them position when facing roadblocks I first started in this position and to feel more confident in purchas- with customers,” she said. the fear I had of not being able to ing equipment from a woman.” Despite the challenges she faced keep up with the guys or earn the Robyn is quick to credit the in joining a male-dominated respect that is needed in this Bruckner truck staff with the industry, Robyn’s experience role—not only from coworkers but success she’s had since joining certainly does transcend any from customers as well.” Robyn the industry. “Without them industry or any other type of attributes her success partly to her taking a chance on giving me the sales. “Do your work diligently. friendly competitive nature. “I have opportunity to prove myself in Never stop learning and bettering just as many advantages in this these positions, I would not be in yourself. Show respect and role as I have disadvantages,” she the position I am now,” she said. gratitude for those who help you explained. “I believe some advan- “They have all helped mentor and along your path. And, always do tages I have include my customer guide me in the right direction. your best to provide your custom- service and multitasking skills. A My team views my success as ers with extraordinary customer disadvantage is getting a buyer their own and that feels like an service.” That’s great advice for comfortable enough to purchase honor.” Robyn is proud of using finding success in nearly any of from a woman.” Robyn gained the that opportunity to achieve the life’s endeavors, and we thank skills she has when she started in highest sales within her company Robyn for sharing it! n truck sales while working as an 4 The 2020 Board of Directors and LTA Nominations:
Board of Directors Official Nomination Form UTA STRONG! Any UTA member in good standing may nominate any other UTA member in good standing, or themselves, as long as the nominee meets the following criteria: » Have experience in the used truck industry » Demonstrate a history of ethical and professional business practices t is more important than ever, that we elect a Board of Directors that represents the members » Be willing to advance the goals and objectives promoted by the UTA
Please complete the PDF form and email to [email protected] and is in touch with the entire membership’s needs. Misty Reis — and Doug Shields, Election Committee Chair — [email protected] I Completed form must be received by Friday, June 12, 2020 This is exactly why you should nominate and elect leaders that you feel will best represent you and make wise decisions for your association. Nomination Information
Nominee Title ______Nominee Name Whether you’re a small “mom and pop” dealership, a one-man (or woman) wholesale concern, or a Zip Code ______State Dealership/Business Name City ______multi-brand, multi-store national company, we need to hear your voice now more than ever before. Email Address Address Fax Number ______Telephone The Board of Directors needs bright, energetic, and most of all, committed people from our
Career History ______membership ranks, to represent us and lead the Used Truck Association through these challeng- Years of Experience in the Used Truck Industry: Brief description of Employment History ing times.
Each member of the Board of Directors serves a term of three years and officers of the board are elected for one-year terms of duty by the Board of Directors.
Used Truck Career: (brief description of how the nominee got into the used truck business, and became associated with his/her current business) Nominations will go out soon (if they haven’t already) so please consider carefully that special person in your circle of influence to nominate and represent you in your UTA Board of Directors.
Date______Printed Name of Nominating Member ______Signature of Nominating Member The Marvin F. Gordon Lifetime Achievement Award
This award, the Marvin F. Gordon Lifetime Achievement Award, is the highest honor that can be bestowed upon any member of the UTA. It is reserved for those special people who have contributed significantly to our membership and industry.
Your nominee should demonstrate the highest caliber of honesty, integrity, and a general 2020 willingness to give of themselves to others as outlined in the UTA’s Code of Ethics.
This is your opportunity to give these great men and women the recognition they so richly deserve. Please nominate your choice for the Marvin F. Gordon Lifetime Achievement Award and Doug Shields help us recognize them for their amazing contributions to our association and our industry. Elections Committee Chair [email protected] Be safe. Be strong. Believe. We Are UTA Strong! n
Sales Strategies to Use During COVID-19 continued from page 1
It’s impossible for me to close without men- when everything is over. Approach them the may hold back on investments until the tioning Prospecting even though I said your same way you are approaching your existing uncertainty resolves. But look for the first sign focus should be on existing customers. If you customers. Be thoughtful, be creative, and that the crisis is ending. You should make up are now working a few highly qualified share your new virtual floor tour and product for some temporary losses very quickly. prospects or target accounts, please stay in walk-around videos with them. Good Selling. n touch with them. Going off the radar is the Deals may get stalled in your pipeline. But worst thing you can do during the outbreak. make sure you keep them warm. And keep Given the intensity of the situation, your checking in with your leads. Some companies prospects are not likely to remember you
5 An Update for UTA’s Members
I hope you, your family, and your business are in good shape and are doing well.
The COVID-19 pandemic has affected all of us and has impacted the entire world. The good news is some of the hardest hit areas appear to have fewer new cases, and fewer new serious cases. Unfortunately, some people have lost their lives and many people remain ill.
These are challenging times, which have required the Used Truck Association to take some unprecedented steps: » The 2020 Scholarship Reception and Golf Tournament scheduled for June 24–25, 2020 will be postponed until 2021. » The UTA Management Training Class scheduled for June 24 in conjunction with the UTA Scholarship events in Kansas City will be rescheduled. » The UTA Sales Training Class scheduled for July 21-22 in Chicago will likely be rescheduled. » The UTA Dealer Group Fishing Trip, scheduled for April, has been postponed until September 29-30. Please see the article entitled UTA Events Calendar (on the next page) for further details. » The UTA Board of Directors made these moves in the interest of safety and sound practices.
In January, the Board of Directors decided to award six $7,000 scholarships in 2020. The Schol- arship Committee is looking at additional ways to raise money for the UTA Scholarship Fund. If you have ideas or wish to contribute to the Scholarship Fund, contact: » Dean Jeske, UTA Scholarship Committee Chair at [email protected] » Tim Ronan, UTA Scholarship Committee Co-Chair at [email protected] » Misty Reis, Sentry Management at [email protected] » Or any UTA Board member
One of the highlights of every year is the UTA Convention. The 2020 UTA Convention will be November 4–7 at the Hyatt Regency in Atlanta. Companies and sponsors have been contacting the UTA to sponsor the 2020 Convention. If you want to sponsor the 2020 UTA Convention, want to attend, or have questions, contact: » Terry Williams, UTA Convention Committee Chair at [email protected] » Hal Dickson, UTA Convention Committee Co-Chair at [email protected] » Misty Reis, Sentry Management at [email protected] » Or me, at [email protected]
The Training Committee will provide more free UTA webinars this year. On April 8, Charles Bowles from Commercial Truck Trader gave tips about selling trucks in today’s market. If you missed this webinar, you missed a good one. (See the separate article in the newsletter about it.) On April 23, Allison Transmission conducted a webinar about their transmissions. If you are a supplier and want to host a webinar, contact: » Amy Shahan, UTA Training Committee Chair at [email protected] » Jody Johnson, UTA Training Committee Co-Chair at [email protected] Some very good news is that UTA membership has increased in 2020 compared to 2019. This is very positive. Thanks to the Membership Committee and to Misty Reis for their efforts. Thank you to everyone for renewing your membership.
The year 2020 has been a challenging and a different year for the truck business and the UTA so far. There are positive signs despite many of the negative things we see. The year 2020 is a year of change. The UTA is moving and pivoting with these changes.
We look forward to seeing you and many others at the UTA Convention in November.
Craig Kendall Take care and be safe. n UTA President [email protected]
6 Industry Events Calendar UTA Events Calendar
Note: Be sure to check the websites listed below for the latest JUNE information on these events. CANCELED • 24-25 • 15th Annual Kansas City Reception and Golf Outing to benefit the UTA Jerome JULY Nerman Family Foundation 9-11 • Walcott Truckers Jamboree Iowa 80 Truckstop SEPTEMBER Walcott, IA 29-30 • UTA's 2nd Annual Fishing Trip Lake Texoma AUGUST Alberta Creek Resort, Kingston, OK 14-15 • Waupun Truck-N-Show Contacts: [email protected] Sponsored by Ripon Press [email protected] Waupun, WI 19-22 • National Truck Driving Championships NOVEMBER Sponsored by American Trucking Associations 4-7 • 21st Annual UTA Convention Indianapolis, IN Hyatt Regency CANCELED • 27-29 • Great American Trucking Show Atlanta, GA (GATS) Dallas, TX
SEPTEMBER 23-25 • Accelerate! Conference & Expo Women In Trucking Sheraton Dallas Hotel Dallas, TX 24-30 • IAA Commercial Vehicles Show Ain’t No Stopping Us Now Hanover, Germany
OCTOBER 10-11 • California Trucking Show California Trucking Association 2020 TRAINING Ontario, CA SELLING FOR SUCCESS 24-28 • ATA Management Conference & Exhibition TO BE RESCHEDULED: Houston, TX Sponsored by American Trucking Associations Courtyard Houston Intercontinental Airport Denver, CO 15838 John F Kennedy Blvd Houston, Texas 77032 NOVEMBER TO BE RESCHEDULED: Fontana, CA 4-6 • NTDA Annual Convention Courtyard by Marriott Rancho Cucamonga Indian Wells, CA 11525 Mission Vista Drive Rancho Cucamonga, CA 91730 4-7 • 21st Annual UTA Convention Hyatt Regency WILL PROBABLY BE RESCHEDULED: Atlanta, GA Chicago, IL – July 20 and 21 Courtyard Chicago O’Hare 2950 S. River Road Des Plaines, IL 60018
MANAGING FOR SUCCESS TO BE RESCHEDULED: Kansas City – June 24 This training will be held in conjunction with UTA’s annual Kansas City Golf Outing and Reception.
7 Travis Sweet, Red Oval Manager Peterbilt Motors Company Peterbilt Red Oval Program Manager 1016 Ridgetop Dr. Justin, TX 76247 Paul Huls, New and Used Truck Sales Tyler Menhusen, Sales Team Leader https://www.peterbilt.com/ Peterbilt of Sioux City TrueNorth Companies (940) 367-2934 I-29 Exit 43 (Singing Hills Blvd.) 500 1st Street SE travis.sweet@paccar.com Sioux City, IA 51111-1013 Cedar Rapids, IA 52401 Travis came to trucking https://www.pbtruck.com/SiouxCity/ (319) 739-1431 in 2008 bringing an (800) 444-7383 [email protected] interesting work [email protected] background with him. Paul’s been in trucking Before trucking, Travis since 2006, when he worked in retail started with Peterbilt of management and sales, Sioux City. He worked and was also the owner in parts for a while of a junk removal before switching to company. He joined the UTA looking for a sales. “greater insight into the used truck market,” and to make new contacts. Before coming to Peterbilt, Paul worked Travis joined Peterbilt in 2011, starting at the in auto parts for eight company’s Denton, TX plant building trucks years. (working in cab trim). Speaking of his current job at Peterbilt, Travis says the job allows him Outside of work, Paul enjoys motor sports, to grow a secondary market for Peterbilt/ especially sprint car racing. He also restores PACCAR, which he enjoys. old cars. When he is off the clock Travis enjoys spending time with his friends and family. Travis had some thoughts to share with other UTA members. “I hope I can bring value to this group of individuals, putting our heads together to create methods and ways of improving Used Trucks involvement.”
In Memoriam: Don Tatum (1936-2020)
The UTA Board is sad to report the recent passing of our long-time friend and associate, Don Tatum. Don passed away at his home in Wildwood, FL on May 10th. He started his career in trucking as a route driver for Jesse Jones Famous Hot Dogs. From this early start, he went on to become an owner/operator, pulling a flatbed for McLean Special Commodities Division. He sold trucks for Fitzgerald White/Freightliner/Auto- car Co. and R. F. Steiner International Motor Trucks in Huntington, WV. For a time, he was co-owner and managing partner of Tri State Kenworth in South Point, OH. In 1984 he moved to Kenworth of Tennessee in Nashville, where he served in a variety of positions until his retirement in 2000, as the Vice President of Used Truck Operations. Throughout his career Don enthusiastically contributed to the advancement of the used truck industry. He was an active member of the Kenworth National Used Truck Group and an early supporter of the Kenworth Elite Program. He was also a contributor to the Kenworth Truck Company Elite Used Truck Manual and a well-respected innovator in reconditioning and remarketing trucks. Don was an early supporter of the then newly formed National Truck Protection Warranty Programs. Referring to this support, his friend John Bender recalled that Don referred to the folks at NTP as, “Damn Yankees, but good Damn Yankees!” According to John, that was high praise coming from Don. But of all his contributions to the industry perhaps his greatest gift was his mentorship. He helped many others get started in the industry, including his friend John. “There is a substantial list of us who received a great deal of tutelage from ‘Daddy Don,’” John recalled. Don was a contemporary of UTA’s original founders and long-time members including, Jim Sunday, Joe Galowitch, “Bear” Nadolson, Dick Vulgamore, Tom Cullison, and Eddie Walker, among many others. Don was preceded in death by his beloved wife, Anna Marie, his son Douglas, and his brothers Johnny and Aubrey Tatum. He is survived by his three daughters, Joyce, Catherine, and Joanna. There will be a graveside Celebration of Life service on Wednesday, May 20th at 11:00 a.m. at the Hermitage Memorial Gardens, 550 Schute Lane, Old Hickory, TN. “Bear” Nadolson will assist the Rev. John C. Bender, as liturgist. n
8 CONVENTION COMMITTEE UPDATE
Ain’t No Stopping Us Now
UTA’s 2020 Convention: You’ll Look Forward to it Now More Than Ever
e all look forward to the annual UTA convention. The fact that it’s always held in WNovember is no accident. This allows us to review and celebrate the year that was and plan for the year ahead. This year I do not think I have ever looked more forward to a convention and having the ability to see and celebrate with friends.
Highlights of what your convention committee has been working on: » Keynote address by NBA All-star, entrepreneur and former auto mechanic Mark Eaton » The Marvin F. Gordon Lifetime Achievement Award will be presented Thursday during the general session » Networking tours: Top Golf, Martin Luther King, Jr. Museum, Coca-Cola World, Georgia Aquarium, Trolley Tour » UTA Dealer Group awards will be presented Thursday morning » Networking events: welcome receptions, Vendor Expo, closing reception, tours » The Vendor Expo, which is also your best opportunity to learn about new products and services for our industry » Informative breakout sessions that will move your business forward in 2021 » More to come! Early bird discounted registration is now open! Please log on to www.uta.org, sign in and then go to the Member Center to register and pick your networking tour. The UTA has stood firm in its goal to offer networking, learning, and a little bit of fun each fall. This year will not be an exception. There is No Stopping Us!
Sponsoring the convention will put your brand and product in front of hundreds of industry decision makers. These connections can pull your product or service to the next level and help make 2021 an amazing year for you. Sponsorships begin at $1,250 and include many unique benefits. To learn more, please contact Misty Reis at 877.438.7882 or [email protected].
I’m looking forward to seeing everyone in Atlanta, GA, November 4-7! n
Terry Williams Convention Committee Chair [email protected]
9 Doug’s Morning Coffee: The 80/20 Rule
any of you may have heard » Engaging in a lot of small talk out and talking with ready and Mof the 80/20 Rule also with fellow employees instead capable buyers. known as the Pareto Principle. of talking with customers and Now let’s contrast the above low When I ask my students about it prospects. ROI activities with the following most of them tell me that 20 percent Lunching alone or with fellow high ROI activities that 20 per- of salespeople win 80 percent of » employees instead of customers centers engage in daily: the sales while the other 80 or prospects. percent of salespeople survive on » Blocking time to call prospec- the remaining 20 percent. » Performing low priority, non- tive buyers (new business) every morning, not stopping That is almost always the case in urgent tasks during the day until they’ve gotten 10 quali- any sales organization, regardless instead of doing them in the fied buyers on the phone and of the industry. early mornings, evenings, or on weekends. profiled their needs. Here are some interesting 80/20 “constants” in sales that may » Sitting at the dealership wait- » Arranging lunches with cus- intrigue you: ing for walk-ins or call-ins. tomers and hot prospects well in advance with appointments » 20 percent of a company’s » Playing on their phones (social on their Outlook Calendars. customer base is responsible media, texting friends, check- for 80 percent of its sales. ing the news) instead of using » Engaging only in Dollar Produc- them to call potential buyers. tive Activities during the day » 20 percent of a company’s while handling any necessary customer base yields 80 » Only phoning or calling on busy work after 5:00 p.m., early percent of its profits. customers they’re comfortable in the mornings, or on weekends. with. » 20 percent of a salesperson’s » Setting appointments and going actions yield 20 percent of a » Only prospecting small-time to see (in person) at least 10 company’s sales. players with little potential for customers or prospects per day. growth because they’re easy to So, the obvious question is: What talk to. » Emailing at least 10 prospects are the top salespeople doing that or sold customers about specific the vast majority aren’t? » Opting to send an email or text trucks that fit them, every day. to an interested buyer instead I’ve spent my entire career looking of having a real conversation. » Strategically targeting prospec- at this and here are my findings: tive Bronze (1-4 trucks), Silver » Driving 50 miles to call on one » Top salespeople focus and (5-50 trucks), and Gold (51 or customer and driving all the more trucks) level fleets equally. invest more time on the 20 way back without dropping in percent of activities that yield on any other businesses. » Building a calling list with loose 80 percent of the wins. appointments before and after » Obsessing over things they lunch (the primary appointment) » Top salespeople focus on the have no ability to affect. 20 percent of customers that for every area they travel to. If I hit a nerve with you on any of yield 80 percent of their wins. Controlling what they can these points, you probably suffer » control, meaning their quantity » Average salespeople tend to from call reluctance. Call reluctant and quality of outbound waste their valuable time on salespeople engage in “call activity. the 80 percent of activities avoidance” by choosing to perform that yield very poor results low return activities during their You may have noticed some long term. “golden time” from eight to five. glaring differences in how you » Average salespeople tend to They tell themselves, and their handle your business and how top target lower quality, 80 managers, that they’re working salespeople handle theirs. If you did, percent customers that yield when they really aren’t. then you’ve got some work to do. more problems than profits. This work is “low risk” from an You may realize that your “em- To quote a good friend of mine, emotional perspective because ployee mindset” is causing you to “80 percent of salespeople choose they can’t be rejected and that’s engage in work that isn’t condu- exactly why they engage in it. cive to making sales. You need to Doug Shields to major in the minors.” National Director of adopt a more “entrepreneurial What are some of these low ROI By engaging in low ROI activities Used Truck Operations 80 activities that 80 percenters during the day, they avoid the one Rush Enterprises, Inc. thing that would result in a much [email protected] engage in? higher ROI, and that is seeking Continued on page 11
10 UTA and Commercial Truck Trader’s Virtual Marketing Webinar: Just the Ticket for Over 300 Attendees
hose truck dealers who can stay open are seeing more business than usual. That was just Tone of the valuable insights from April’s free webinar presented by the Used Truck Associa- tion (UTA) and Commercial Truck Trader. More than 300 truck professionals attended the timely webinar, entitled Navigating Disruption in 2020: Tapping Into the Virtual Truck Consumer.
Charles Bowles, Commercial Truck Trader’s Director of Strategic Initiatives presented the webinar, which focused on ways dealerships can hone their websites and boost their social media strategies. Bowles also provided best practices for working with prospects through those all-important virtual-walk-arounds.
In addition, Bowles discussed important strategies for using a tool we’ve all been using for years—email. Through email, Bowles said, you can put yourself directly in the in-box of prospects as a reminder of the expertise you can offer. Email Service Providers, Bowles added, can help you create email campaigns and monitor your email performance. “It’s worth taking the time to find the right ESP for your needs,” Bowles said.
During the question and answer session after the webinar someone asked: “What’s the most important thing I should be doing right now?” Bowles’ answer: “Check in with your customers. You need to let them know you’re open for business (even if only virtually).”
The demand for trucks is out there. Bowles said that Amazon is hiring 100,000 new support people. That’s because people are shopping online now more than usual and all those things they’re buying will likely be delivered by truck.
There’s no doubt attendees found the webinar useful. “The webinar was timely, accurate, and presented in an easily understood manner,” said UTA President Craig Kendall. Amy Shahan, Chair of UTA’s Training Committee said the webinar: “Really hit home with attendees given the many calls and emails I received afterwards.”
Those who were unable to attend the webinar, or attendees who want a recap, can review the presentation here on the UTA website. n
Doug's Morning coffee continued from page 10 mindset” that helps steer your decisions and You may have also realized that you fear The only thing that matters in a salesperson’s activities toward what pays you. rejection, and that fear is costing you a lot of existence is getting the signature on the line money. The only way to get past it is to do the that is dotted. The best advice I ever got is to treat your time thing you fear repeatedly until you no longer like it’s worth $100.00 an hour. If your time is Top salespeople engage in the precise activi- fear it. worth that much there are some things that ties necessary to create these opportunities. you simply aren’t going to do anymore. If you do it enough, you’ll be able to manage They are almost exclusively outbound activi- through any residual fear. I don’t think we ties, so they start with you doing something! You may have to delegate certain necessary ever completely lose the fear, but it does tasks, or at the very least delay them to a later Here’s a tip: If it scares you, it’s probably become a lot more manageable. time that doesn’t interfere with your “golden something you should be doing. time.” As a wise man once said, “It’s okay to have Everything else is just the noise of defeat. butterflies as long as they fly in formation.” Good selling! n
11 Women In Trucking: #SteeringTowardKindness
ntil a few short weeks ago, Unone of us could have imagined a world with COVID-19, social distancing, and government mandates to stay in our homes. Each day we listen to news reports telling us the numbers of people affected and how many deaths have occurred. walking up to the window was their profits in April to nonprofits prohibited. McDonalds took the helping people affected by the lead and promoted their mobile virus. Thanks Paper Transport for app so drivers could pay and #SteeringTowardKindness receive the order in a designated To keep the momentum going, we area. Thanks, McDonalds, for would like to hear your stories. Let #SteeringTowardKindness us all look at the bright side of this Hotels and Motels are concerned pandemic and show each other how about accommodating profes- we are steering toward kindness. sional drivers and many are If you are on the Women In closing their doors. Drury Inn & Trucking Facebook page, post your Suites reached out to us to let us story there and tag #Steering- know that their staff is welcoming TowardKindness. Share it on drivers and have reduced rates to Twitter and tag us their cost. They are offering a @WomenInTrucking. “Travel Healthy” room for $59 to While we work through this include free breakfast, fresh devastating virus, we can be In the past, we have all agreed popcorn and free evening recep- assured that the trucking industry that the trucking industry had an tion to include hot food and cold will continue to deliver the image problem. First, most of the beverages, including beer and needed food and supplies to help folks who drive four wheelers do wine. Pools and whirlpools are the world deal with this horrific not understand how to operate also available for drivers to ease challenge. In every one of those around tractor trailers. In addition, those muscles. Thanks, Drury Inn, cabs is a professional driver who they do not appreciate the impact for #SteeringTowardKindness. is braving the challenges he or the trucking industry has on their Truck stops are vital for drivers she is facing to complete the load. own lives, much less the economy who need parking, food, and fuel. Thank you for #SteeringToward- as a whole. Sapp Brothers is suspending paid Kindness. n Now, as the airlines, motor coach parking at all locations. Love’s has and school bus, passenger rail, converted their self-service grills and other modes of transportation and delis to full service so their are suffering because of the virus, team members will serve the food the trucking industry continues to products. The nation’s truck stops move forward (literally!). have remained open, continue to provide fuel and food and show- The average citizen is finally ers, but report they have imple- starting to understand how that mented higher levels of cleaning big truck on the road impacts and sanitization. them, personally. In fact, we are seeing a surge in appreciation for Trucking companies are working the drivers who are delivering hard to continue delivering food, gas, household goods, and medical supplies, hand sanitizers, hand sanitizer! and COVID-19 test kits. Many carriers are providing supplies Ellen Voie CAE PDC While governments shut down and snacks to their drivers. Paper President/CEO restaurants for indoor seating, Transport, Inc. in Green Bay, WI, Women In Trucking they did not consider how a driver went beyond that and President Association, Inc. was supposed to maneuver a rig Jeff Shefchik pledged one half of (920) 312-1350 into a drive thru lane, where
12 The Leader You Want to Be: Part 1 Don’t Underestimate Your Ripple Effect: Choose a Positive Legacy
Editor’s Note: The following excerpt is from the book The Leader You Want to Be: Five Essential Principles for Bringing Out Your Best Self—Every Day by Amy Jen Su. In this part of a two-part excerpt, Su discusses the effect that leaders have on those around them, a kind of ripple effect. Su defines in some detail what the ripple effect is, and how best to manage it to create the impression and working environment wanted. In Part 2, to be published next month, Su discusses this ripple effect outside of the office and how it helps you master your leadership skills.
Su mentions two types of Leaders, which were defined earlier in her book. Leader A works hard, is energized by his accomplishments, and above all is effective. Leader B, while also energized by his or her accomplish- ments, is also sometimes easily frustrated by distractions, is always checking his email, and spends a lot of time spinning his wheels. Su contends that Leader A and Leader B are representative of all of us. We’ve all had our A or B days.
ne of the biggest responsi- have a very different impact. Remember that our unresolved Obilities of leadership is the Beyond the negative consequenc- inner conflicts (such as the need effect we have on others. As a es of Leader B mode on your own to prove ourselves, people-please, leader, you are the standard stress levels, effectiveness, and one-up others, or control others) bearer, the one out front, the health, your Leader B mode also inevitably play out in our outer example everyone sees negatively impacts whole teams of world too—at work and at home. and emulates. You are people (direct reports or col- Armed with self-knowledge, the one who sets goals, leagues or both), or even whole however, we can take whatever objectives, and dead- organizations. steps we need to in order to lines, and you are also become the very best leader we Like a set of dominoes, your the one who sets the were meant to be, in any context. Leader B “ripple” cascades out to tone, the culture, and affect anyone you work with, Fortunately, the ripple effect holds the general ethos of creating more Leader B days for true for Leader A as well. The more your work environment. others. As I shared in Chapter 1 on continuously you feed Leader A, And the more senior, the pitfalls to performance, when the greater your positive effect. the more-high perform- you, the leader, are focused on According to a recent Gallup ing, and the more just doing more (with no prioriti- research report that surveyed 105 visible you are as a zation and focus on the value you teams over six three-month periods, leader, the greater the add), on doing it now and tele- researchers found that the well- effect you have.2 graphing a state of emergency being of team members is directly If you call to mind the (without an appropriate discern- dependent on the well-being of visual of a pebble ment or clarity on the true level of others on the team—and that the dropped into a lake, urgency), on doing it yourself effect increases over time. Indi- you’ve got an apt image (creating bottlenecks, being in the vidual team members who re- of how leadership weeds, and micromanaging), or ported experiencing what re- begins from that one on just doing it later (putting off searchers called “thriving point—you—and flows caring of your health and well- well-being” in the first round of out in ever-widening being), it’s not only you who the study were 20 percent more circles to touch team suffers but also your loved ones, likely to have thriving team
members, divisions, organizations, your teams, your organizations, members six months later.3 n shareholders, and, depending on and ultimately the mission and how high your profile is, entire goals you hope to achieve. industries or communities. What Without self-awareness, it’s all too do you want that ripple effect to easy to affect others with a nega- look like and feel like for others? tive attitude or unintentionally Depending on which mode you’re Reprinted by permission of Harvard foster an atmosphere that under- in, Leader A or Leader B, you’ll Business Review Press. Excerpted mines your team’s effectiveness. from The Leader You Want to Be: Five Essential Principles for Bring- ing Out Your Best Self—Every Day 2. Amy Jen Su and Muriel Maignan Wilkins, “What’s Your Ripple Effect?,” Leader to Leader Magazine, March 17, 2014, by Amy Jen Su. https://doi.org/10.1002/ltl.20127. Copyright 2019 Amy Jen Su. 3. Jennifer Robison, “Well-Being Is Contagious (For Better or Worse),” Business Journal, November 27, 2012, https://news. All rights reserved. gallup.com/businessjournal /158732/wellbeing-contagious-better-worse.aspx.
13 How Truck Dealers Can Meet Today’s Challenges
hile I was growing up, my father, whom most people know as “Bear,” was a used truck Wsalesman at the International Used Truck Center in Columbus, Ohio. For those of you who know him, he is a man’s man. He has always enjoyed outdoor activities and it should be no surprise to anyone who meets him that he was an all-star football player, white-water rafting guide, Cub Scout Master, and a “truck guy.”
As I recall my many adventures with my dad, I often wonder what made this bearded mountain of a man who was not overly interested in tech- nology, bring home computers like the IBM PCjr for me and my brothers to use. Remember, this was back when computers were not popular, and most people didn’t have one in their homes. For the young crowd reading this, this is back in the 80’s before “Al Gore invented the Internet” and it became a household word. This is before Google existed, and when computers had a whopping 128K of RAM memory. If you are young enough so you can’t remember a time without the internet, you probably don’t get those references.
I could ask him why he always made technology available to us, but I suppose it is more fun to just guess. Whatever his reason, I credit much of my thinking today to him. During my formative years, trucking and technology were both big influences in my life. This was the time in my life when I would join him at the dealership every day to detail trucks, do lot work, degrease frames and fifth wheels, and line up the front row. But I was also messing around with computers and familiarizing myself with the new world of home computer technology before most people did. This gave me a unique paradigm in my thinking. I am first and always a “truck guy,” but it has always been intuitive to me to think of technological solutions to dealer opera- tions and problems. So much so that this is how the start of my company came about—but that is a story for another time.
Because of this, I am a “truck guy” at heart and have extensive knowledge of the industry and dealer-thinking. The disparity between the 1980’s and today is astounding as we are all now connected with super-computers in our hands many hours of the day. The truth is that the tech- nology that many people in the truck industry use has become far more advanced. There is no time in history that the deficiencies have been more apparent, and this time period will likely make or break many companies based on their ability to adapt, especially when it comes to using technology. I have been talking to dealers across the country about dealing with remote sales staff, social distancing, and the virus’s effect on their used truck operations and business.
As I write this, President Trump extended the quarantine and several more dealerships are scrambling to maintain their efficiencies and processes while sending their staffs to work from their homes. Many dealers today still email excel spreadsheets and handwrite appraisals. It is not that this is “bad” or doesn’t “work,” but that some of these practices are challenged when efficiencies are needed, and flexibility is paramount. How can dealers evolve in just a few short days or weeks to have their teams running at full speed and perhaps even better than before?
Meet Face-to-Face The first idea is for dealers to get together “face-to-face” with their internal sales teams and with customers that are quarantined or outside of a safe traveling zone. The best way to do this is to hold web meetings. This idea is not new, but it’s not a way that many dealers are accus- tomed to communicating.
A few services that I recommend are: Ethan Nadolson is a past UTA Board Member and 1. Zoom Meetings President/CEO of SOARR This meeting style is what I call the Brady Bunch. For those of you who don’t get this reference, www.soarr.com it is mostly a way to view everyone on a screen in little boxes using their web cameras. Screen 740-587-1695 sharing, video conferencing, call-in features and more are all included. This service has free and pro offerings so this tool can be used for a variety of purposes and by different sized companies.
14 2. WebEx How Truck Dealers Can This is the service that we use at SOARR. It is a little more technical and is a great platform for meetings. I think it is more geared toward presentations and screen sharing but it does offer video conferencing, call in numbers, and more. Meet Today’s Challenges 3. GoTo Meeting This service is an easy to use online meeting platform that is similar to WebEx but is probably a little less technical, meaning you can more quickly join a meeting. This service has the same type of features as WebEx and feels more like a presentation or screen sharing service than Zoom.
All three of these are great platforms and offer mobile apps as well as desktop capabilities. There are plenty of others out there, but these three are the most common ones within the same price range, and so worth considering.
Invest in A Cloud- Based Inventory Management Platform
Internal communication is critical, and it is easy for dealers using spreadsheets to have inaccurate or outdated information when everyone is working from a different place. Those not on a cloud-based solution should look to see what’s available for allowing sales staffs to log into the cloud for their inventory. When looking for a platform it is important to find a service that will accept photos, organize inventory, have robust search and filter functions, and offer ways for the sales team to log quotes for remote management overview.
Use A Truck Inspection Service as Your “Eyes” Truck inspection services are a great way to replace your eyes on the ground. Traditionally, salespeople, managers, or other experts would go to a fleet or travel to view trade packages. This is not possible in most cases today with our current market conditions. When looking at inspec- tion companies consider: » Do they offer National Coverage? » Is the inspection accepted by warranty companies? » Is it a mechanical inspection or just the specs? » Is it integrated with your inventory system, so you don’t have to reenter information? » How fast can they deploy? » Do they offer a Certification? Cost is a consideration, but not at the expense of quality. The inspector becomes your eyes on the truck and the quality of the inspection can make or break a deal. Remember, “no deal is better than a bad deal.”
Use Online Negotiation and Selling
While online negotiation and selling are not widely used in our industry, the case for imple- menting this type of platform has never been stronger. Dealers and manufacturers alike are turning to solutions that streamline the buying and selling process. The efficiencies that are afforded by transacting online are incredible and will eventually become commonplace. Don’t believe it? Look at Amazon.com or Carvana for parallel examples.
Set Your Dealership Up for A Successful Future Though the economic and social effects are painful, the COVID-19 pandemic has catapulted the world deeper into the digital age out of sheer necessity. Social distancing is here for the foresee- able future and the age-old concept of “adapt or die” has reared its ugly, uncomfortable head. Once dealers go through the pains of change, there will be no going back to a less efficient way of conducting business. The great news is that there are solutions! The even better news is that trucking is what is keeping our country running and we all can be a part of our country’s suc- cess and this part of history. Let’s all band together as UTA members and share in the success. Let’s keep America Open for Business One Truck Load At A Time! n
15 J.D. Power Valuation Services Update Class 8 Retail Market Held Up in April
n the first full month of sales under the economic shutdown, Class 8 Sleeper Tractors – Retail Iauction volume was relatively healthy, while pricing pulled back. The Retail pricing continues to outperform auction, and that gap has widened. retail channel saw lower volume but more stable pricing. Medium Duty We expected to see pricing fall more notably in April, following the auc- trucks had a generally lackluster month. tion channel. This didn’t happen, suggesting the market may have found Sleeper Tractors – Auction its bottom. Given the shutdown, we were encouraged to see volume very similar to The average sleeper tractor retailed in April was 61 months old, had March, which means seasonal activity returned this year. Pricing was 466,621 miles, and brought $42,292. Compared to March, this average less positive, falling fairly substantially, as expected. But at least trucks sleeper was 8 months newer, had 11,615 (2.6 percent) more miles, and are still moving. See below for average pricing detail for our benchmark brought $2,032 (4.6 percent) less money. Compared to April 2019, this model. average sleeper was 10 months newer, had 1,658 (0.4 percent) fewer » Model year 2017: $35,000 average; $400 (1.1 percent) lower than March miles, and brought $14,471 (25.5 percent) less money. » Model year 2016: $25,000 average; $2,150 (7.9 percent) lower than Looking at trucks two to five years of age, April’s average pricing was as March follows: Model year 2015: $18,000 average; $4,000 (18.2 percent) lower than » Model year 2019: $106,750; $1,309 (1.2 percent) higher than March March » Model year 2018: $83,969; $485 (0.6 percent) higher than March Model year 2014: $15,725 average; $775 (4.7 percent) lower than March » » Model year 2017: $57,751; $2,325 (3.9 percent) lower than March » Model year 2013: $13,750 average; $775 (6.0 percent) higher than March » » Model year 2016: $44,595; $2,340 (5.5 percent) higher than March Month-over-month, our benchmark group of 4-6-year-old trucks brought Month-over-month, late-model trucks brought 0.3 percent more money. 7.7 percent less money. In the first 4 months of 2020, pricing averaged In the first four months of 2020, pricing averaged 12.2 percent lower 28.6 percent lower than the same period of 2019. Depreciation in 2020 than the same period of 2019. Depreciation in 2020 is averaging 2.2 is now averaging 2.2 percent per month, a healthy figure given the percent per month, an improvement from last month’s 2.7 percent, and a economic situation. better result than we expected. With the economy very gradually opening back up, we could now be at or See the “Average Retail Selling Price: 3-5-Year-Old Sleeper Tractors” near the trough for pricing. We could see some uptick in volume in upcom- graph for detail. ing weeks, but demand will still be limited mainly to replacement iron. Average Retail Selling Price: 3-5 Year-Old Sleeper Tractors See the “Average Selling Price: Benchmark Sleeper Tractor…” and Adjusted for Mileage “Volume of the Three Most Common Sleeper Tractors…” graphs for detail. $100,000 $90,000
$80,000 Average Selling Price: Benchmark Sleeper Tractor Sold through the Two Largest Nationwide No-Reserve Auction Companies $70,000 $50,000 $60,000
$45,000 $50,000
$40,000 $40,000
$35,000 $30,000 4YO $30,000 $20,000 5YO
$25,000 $10,000 3-5YO Avg. MY2011 $20,000 $0 MY2012 Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar $15,000 MY2013 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 $10,000 MY2014 Source: J.D. Power Valuation Services MY2015 $5,000 MY2016 $0 Dealers retailed an average of 3.4 trucks per rooftop in April, 0.3 trucks
Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar lower than March, and 0.9 trucks lower than last April. Retail purchasing Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Source: J.D. Power Valuation Services remains limited primarily to replacement demand.
See the “Number of Trucks Retailed per Dealership Rooftop” graph for Volume of the Three Most Common Sleeper Tractors (3-7 Year-Old) Sold through the Two Largest Nationwide No-Reserve Auctions detail. 900
800 Number of Trucks Retailed per Dealership Rooftop 7 700 6 600 5 500 4 400
300 3
200 2
100 1
0 0
Jul Jul Jul Jul Jul Sep Jul Sep Jul Sep Jul Sep Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar Mar May Nov Mar May Nov Mar May Nov Mar May Nov Mar Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-16 Jan-17 18-Jan 19-Jan 20-Jan
Source: J.D. Power Valuation Services Source: J.D. Power Valuation Services
16 Looking forward, we still see used truck pricing recovering roughly in We were somewhat encouraged by pricing data, particularly for light- step with the gradual re-opening of the economy. This means the GVW conventionals, suggesting there is still demand among the contrac- auction market should see some firming in the summer, followed by mild tors, delivery operations, small business owners, and other segments to moderate increases in the fall and into 2021 (with some pauses here that buy trucks in this category. On the other hand, volume for all GVW and there, particularly in October and November). classes was somewhat disappointing, suggesting a broader pullback in demand for the medium duty segment overall. We had predicted medium See the “Retail Value Forecast” graph for a look at how we see used duty trucks to weather this storm fairly well, since local deliveries and truck pricing unfolding over the next four years. construction activity have not been curtailed appreciably. With that in Retail Value Forecast mind, we’ll see if volume improves next month. As the country gradually Percent Change Year-over-Year opens back up, there is more positive than negative pressure in the 20% marketplace. 15%
10% See the “Average Wholesale Selling Price: 4-7-Year-Old Conventionals by 5% GVW Class” graph for detail.
0% Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW Class -5% Adjusted for Mileage -10% $35,000 3YO Tr uck -15% $30,000 4YO Tr uck -20% 5YO Tr uck $25,000 -25% $20,000 2015 2016 2017 2018 2019 2020(f) 2021(f) 2022(f)
Source: J.D. Power Valuation Services $15,000
$10,000 2 per. Mov. Avg. (Class 4 Price) Medium Duty Trucks $5,000 2 per. Mov. Avg. (Class 6 Price) Volume was down across the board. Pricing was mixed. $0 Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
Starting with Class 3 – 4 cabovers, a newer mix of trucks combined with Source: J.D. Power Valuation Services a small sample size pushed our average much higher than last month. April’s average for our benchmark group was $15,144, $4,506 (42.4 percent) higher than March, and $486 (3.3 percent) higher than April Forecast 2019. The first 4 months of 2020 are averaging 23.0 percent lower than Cautious optimism is in the air as the country very gradually reopens. At the same period of 2019. April’s outlier result pushed our monthly depre- the time of this writing, freight volumes look to be lifting off slightly from ciation average into the appreciation zone. We do not consider this result the post-stockpiling trough. Those measures should improve mildly in representative of the market, so we will revisit this figure next month. step with the incremental increase in business activity. There will be no shortage of used trucks at least through summer, but the worst of the See the “Average Wholesale Selling Price: 4-7-Year-Old Class 3-4 depreciation should be behind us. We haven’t appreciably changed our Cabovers” graph for detail. residual value forecasts for Q2-Q4 of 2021, and we still see pricing Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 Cabovers returning close to our existing trend by that time. n Adjusted for Mileage
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar Jan-16 Jan-17 18-Jan 19-Jan 20-Jan Source: J.D. Power Valuation Services
Looking at Class 4 conventionals, average pricing for our benchmark group was $20,263, $1,318 (7.0 percent) higher than March, and $2,484 (14.0 percent) higher than April 2019. The first 4 months of 2020 are averaging 3.8 percent higher than the same period of 2019. Depreciation is averaging 4.7 percent per month this year.
Class 6 conventional pricing averaged $19,045 in April, $2,527 (11.7 percent) lower than March, and $7,436 (28.1 percent) lower than April 2019. The first 4 months of 2020 are averaging 16.4 percent lower than the same period of 2019. Depreciation is averaging 4.0 percent per month this year. Chris Visser, Senior Analyst and Product Manager Commercial Vehicles
17 Used Truck Sales Down in March Class 8 Sales Sink: FTR March: ACT Research March’s preliminary NA Class 8 orders sunk to their lowest level since Sales Remain Positive Y/Y and YTD 2010, FTR recently reported. At 7,400, orders were down 48% m/m and down 52% y/y. FTR noted that “a significant number of fleets canceled The calm before the storm? ACT Re- orders previously placed due to the sharp and sudden downturn in search’s March report on Class 8 used truck sales provided both good economic conditions.” and bad news. Month-over-month sales dropped 8% ACT said, but longer term, sales rose 5% over March 2019’s tally. Looking at 2020’s Uncertainty over the COVID-19 crisis’s duration is limiting orders to first three months versus the same period in 2019, volumes are up 15%. short-term, definite needs. FTR expects orders to stay near 10,000 trucks for a few months “until economic activity regenerates.” Over the last 12 ACT also released other data showing average prices were down 1%, months, 170,000 Class 8 trucks were ordered. while average miles and age were up 2% and 1% respectively. “The only good news here, is that the number was still positive despite “In normal times, sales increase around 15% from February to March, the high number of expected cancellations,” said Don Ake, vice president but these are not normal times, and the disconnect is likely the result of commercial vehicles. “The gross order number is probably higher than COVID-19,” said ACT VP Steve Tam. “Freight was relatively strong for a 10,000 trucks, which means at least some fleets need more vehicles. A good portion of March, as retailers and grocers scrambled to restock few carriers are doing well in the short-term, depending on the region empty shelves. With that work largely complete, freight is falling and and the type of freight being hauled.” used truck sales and prices are expected to do the same,” Tam added. “The economy is expected to descend into recession, if it has not already Ake added that FTR expects most fleets will “pause their replacement done so, and with uncertainty about virtually everything high, the well cycles” due to the crisis. “Large fleets that have immediate needs and the prepared will plan for the worst while hoping for the best.” n financial resources will continue to place modest orders. Additionally, smaller fleets may tap into the used truck market for their short-term needs to reduce the financial risk. The second quarter will be tough on the Class 8 market, and the third quarter is still highly uncertain,” he added. n FTR’s February TCI Up Modestly Likely the Last Positive Month Until 2021 FTR is Providing Open Access to Intelligence Re- FTR reported February’s Trucking Conditions Index (TCI) reading was ports Amid COVID-19 slightly positive at 0.96--down only a bit from January. But it should Industry research firm FTR has made available at no charge a series of come as no surprise that FTR also noted the TCI will soon fall into reports based on the forecasting models, insights, and outlooks of its negative territory and stay there until “well into 2021.” Sharp declines in freight experts. FTR said it recognized that with the markets in disarray, freight volumes, utilization, and rates due to the COVID-19 pandemic are and with uncertainty on the near-term future, its experts are now the reasons. providing “unbiased outlooks and insights” to more than just its clients. The spate of negative reports is forecasted to begin with March’s TCI. The reports are available at www.FTRintel.com/Coronavirus. FTR will FTR said that before the COVID crisis began in March, the TCI was update this site as COVID-19 continues to impact global markets. “As positive for the first three months of the year, and that three straight prevention steps and shutdowns due to the novel coronavirus continue positive reports hadn’t been seen in a year. to impact global markets, FTR is allowing open access to the intelligence “Although trucking conditions might prove to be comparable to the worst it can provide to help businesses navigate this situation,” the company of the Great Recession, the trucking industry--like the rest of the econo- said in a media release. my--has never seen such an abrupt deterioration. The need to restock “The economy and freight transportation have been turned upside down, grocery shelves provided a brief boost for some segments, but the eco- and it is more important than ever to offer everyone an unbiased look at nomic shutdown now has taken a toll on the whole industry. While an how we see the environment changing. The more information you have, economic restart likely will begin in May, the damage wrought during the better decisions you can make,” FTR Chairman and CEO, Eric Starks this period will weaken trucking conditions for months to come.” said. “We have been producing content to keep our clients in the know, FTR’s Trucking Conditions Index tracks the changes representing five yet I feel it is our responsibility to help everyone through this difficult time. major conditions in the U.S. truck market: freight volumes, freight rates, This is why I have instructed the FTR team to provide as much content fleet capacity, fuel price, and financing. n and analysis to the public as possible about the impact of this crisis.” Key headlines from the reports available for download: » All sectors of transportation will feel dramatic effects from the corona- virus shutdowns. » Economic forecast moves sharply lower as many downside risks are already in effect. » Rail equipment is in for an extended downturn. » A sharp economic contraction will slam CV production. » FTR expects a recession, with major downside risks. 18 Volvo Announces New Financing Options in Pan- demic’s Wake Volvo Financial Services announced it is offering an “enhanced finance program” to those U.S. customers buying or leasing a model year 2020 or 2019 Volvo VNL, VNR, VNX or VHD. The program was created in light of the economic challenges resulting from the COVID-19 pandemic. “We understand how important it is—especially during this unprec- edented situation with the coronavirus--for trucking companies to maintain strong cash flow,” said Stephen Yonce, vice president of VFS. “To do our part, Volvo Financial Services continues to seek out ways to help our customers through these difficult times.” Volvo’s “Hammer Down 2.0” Program extends the first payment for 60 days for qualified buyers of Volvo VNL, VNR and VNX models and for 90 days for qualified buyers of VHD models in dealer stock inventory. The program Daimler and Volvo Join Forces to Develop Hydrogen also offers low to no down payments for qualified applicants. For model Fuel Cell Technology year 2019 trucks, customers can receive up to a $5,000 payment credit Daimler Truck AG and the Volvo Group have announced a joint venture on initial monthly installment or lease payments, and up to $3,000 aimed at developing fuel cell technology and moving the world closer to payment credit on initial monthly installment or lease payments for a sustainable energy future. The 50/50 joint venture centers on develop- model year 2020 models. ment and large-scale production of fuel cells for applications in heavy- Volvo said Daycab models will also receive an engine plan and purchased duty vehicles and “other use cases.” Currently, there is a preliminary Engine Aftertreatment (EATS) coverage for 3 years or 300,000 miles. VNL, non-binding agreement between the companies. VNR and VNX sleeper models will receive an engine plan and purchased Both Daimler and Volvo see fuel cell technology as a key to attaining EATS coverage for 4 years or 500,000 miles. “CO-2 neutral transport.” “Transport and logistics keep the world moving, “Trucking companies and professional drivers are more important than ever,” and the need for transport will continue to grow. Truly CO-2-neutral said Peter Voorhoeve, president of Volvo Trucks North America. “Volvo transport can be accomplished through electric drive trains with energy Trucks North America is committed to doing its part to alleviate some of coming either from batteries or by converting hydrogen on board into the stress created by COVID-19, and we will continue to offer programs electricity. For trucks to cope with heavy loads and long distances, fuel cells to help our customers and keep trucks and the economy moving.” n are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades. This joint initiative with the Volvo Group is a milestone in bringing fuel-cell powered trucks and buses onto our roads,” said Martin Daum, Chairman of Daimler Truck AG’s Board of Management. “Electrification of road transport is a key element in delivering the so-called Green Deal, a carbon neutral Europe and ultimately a carbon neutral world. Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle, and a complement to battery electric vehicles and renewable fuels. Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole. By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development…to establish the fuel infra- structure needed,” said Martin Lundstedt, Volvo Group President and CEO. In a media release the companies said the joint venture will operate as an “independent and autonomous entity.” And Daimler and Volvo continue to compete in all other areas of business. “Joining forces will decrease development costs for both companies and accelerate the market intro- Volvo Financial Services (VFS) is offering customers in the U.S. an enhanced finance duction of fuel cell systems in products used for heavy-duty transport program should they wish to purchase or lease a model year 2020 or 2019 Volvo and demanding long-haul applications.” n VNL, VNR, VNX or VHD model during this time of uncertainty as a result of COVID-19.
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19 News continued from page 17 International Trucks Names Ed Rietman 2019 Dealer of the Year International Trucks recently named Ed Rietman, dealer principal, West Michigan International, its 2019 North American Dealer of the Year. The The more you believe in yourself, the award recognizes top International dealers for their achievements in providing uptime and in easier it is to get others to believe what annual sales, service, and customer satisfaction. you say. You can only convince others of “We’re proud to present Ed and his entire staff at West Michigan International the 2019 North what you, yourself, believe. American Dealer of the Year award, our highest honor” said Persio Lisboa, executive vice president and chief operating officer, Navistar. “With the opening of a brand-new facility, an untiring enthusiasm to deliver premier customer Women In Trucking’s 2020 Female Driver of the Year: service and continual achievement of Dealer Susie De Ridder Performance Standards goals, this past year Women in Trucking named Susie De Ridder, a driver for Armour Transportation Systems in New was a milestone for the entire West Michigan Brunswick, Canada, the winner of its first annual female Driver of the Year award. International team. Thank you for epitomizing what it means to be the customer’s No. 1 choice.” De Ridder was among three finalists. The others were Carmen Anderson, a company driver at America’s Service Line, LLC and Sarah Fiske, a company driver at FedEx Freight. West Michigan International, LLC is a full-service truck dealership, It has several locations in De Ridder has driven a truck Michigan. International said the company has for 40 years. She has roughly over 60 service bays across its locations 4 million accident-free miles. allowing it to service and maintain all-makes She is much more than a of vehicles from quick lubes to complete long-term safe driver, al- powertrain and engine rebuilds. A round-the- though that’s certainly award- clock emergency break down, towing, and worthy in itself. De Ridder recovery service is also available. West actively promotes the indus- Michigan International has 280 employees. try, appearing in trucking magazines and educating “This award is humbling as I think about the many women about the more than 30 years of dedication to our opportunities available in the customers in western Michigan, eight of which trucking industry. As an have been with International,” said Rietman. industry spokesperson, she “A sincere thank you to my diligent and passion- regularly speaks at industry ate staff for consistently delivering quality events as well as serving as a products and premium service that has earned panelist. She also conducts our company a reputation of positively impacting ride-alongs for lawmakers. In our customers’ businesses. I am proud to say they addition, De Ridder’s a mentor, have earned this award. Of course, our gratitude regularly attending Girl Gala is also to our loyal customers who put their Events at high schools and confidence and trust in us as their business community colleges. She par- partner and friend. And last but certainly not ticipates in the Convoy for least, we value our partnership with the Hope Atlantic, raising money Navistar team who is always there to support for cancer research and us and help us accomplish our goals.” n awareness. In 2019, she won first place for best-dressed driver, best decorated truck, and recognition as the driver who raised the most money in Convoy’s 10-year industry. WIT is off to a great start in selecting De Ridder as its first Female Driver of the Year. n
20 Photos from the
See You in Atlanta in November 21 ast month’s column opened with trepidation. L We had no way to know, Dear Reader, if this month would find us better or worse for the bakery, we witnessed the most wear of the past few weeks. We want you to feel incredible scene yet. The line was reassured as you begin this little column that it across the shop and out the door onto the is safe to continue. Unlike most of the rest of sidewalk. Trust us, this baker’s work is worth what we read and watch, we have no intention the wait and the expense. Everything there is of writing about the COVID-19 threat or the 43 so wonderful that we limit ourselves to no days we have currently spent here in the house more than one trip a month. It’s just too together, alone. We don’t need that, and honestly, tempting. On this particular day, having made you don’t either. Instead, we’ve gathered a few our way through to the payment stage, we little tales from what life is like in this quiet little saw a man come into the back of the line. town when we are not shut off from the rest of Holding up a folded $20 bill, he shouted, “Did the world. It’s all good! anyone lose a $20?” Folks quickly checked for their money and a woman behind us realized Before this all began, we’d been sharing between she’d let the bill slip from her pocket while us some stories of life every day here in the waiting outside. “Here you go,” said the hero bustling corner of our town where three of our as he reached across the crowd to hand it back. four schools are right behind our house. We “Oh, no,” replied the woman. “You go ahead and love the sound of the school bells chiming and keep it. Thank you for being so honest.” Then the daily parade of school buses causes us no came the disagreement, “NO, I don’t need it,” concern at all. It’s a lively little place to watch said our hero. “I’m just glad I found the life go by. It’s also a lively place to have others owner.” They argued back and forth between watch us live here. Years ago we did a massive them briefly and the woman finally gave up and renovation in our new/old house. We converted took her bill back. Where else have we ever seen the attic into a home office, a family room, and any two people argue over the right to give away a laundry room. The work took six months to $20? No place we know of is quite like this. complete, and it was quite a subject of interest to those who live nearby. When the work was And last of all, we come to our happy surprise almost finished, we went into the local furni- of this past month. You may recall a town-wide ture store down the street. Owned by the same road project that has now gone into its fourth family for nearly a hundred years, this shop is year. That’s four years of torn up roads, flagged known for great customer service and quality traffic, and detours. We didn’t really complain, materials. As we walked through the door a although this all happened right outside our salesperson, a woman we’d never seen before, front door. It’s a beautiful project now very near exclaimed, “OH, how’s the renovation completion. We’ve personally thanked the road going?!!!” She must have watched our con- workers and written to our town government to tractors hoist the drywall up into the attic commend the road crews and rejoice with them windows with a crane! Who knew? So, this is at the beautiful job that makes our town even just an example of what life is like here. better. We’ve also made it a point to wave and smile at the flaggers and treat them with respect. More recently, we saw on social media that Some of our neighbors have been less neighborly, someone had found a debit card at the ATM but that’s on them. Early one recent morning, we machine at the bank. They put up a posting heard a commotion on our front lawn. Looking giving enough details to identify the neighbor out we saw a small group of workers planting and offered to drive the debit card to its three beautiful little trees across our front lawn! rightful owner to ensure its safety. Not more We knew the project included new landscaping, than an hour later, a young man thanked the but we didn’t expect anything to come our way. finder and explained it was his dad’s card. No Mostly the trees removed for the project were harm came to the loser, and all ended well. replaced, and that didn’t include any on our It’s not the first time such neighborly kindness property. Did these workers make sure we got came from that small bank. Stopping at the some trees, because we treated them with ATM one afternoon, we found a note. “You left kindness and respect? Maybe that’s true, and your money in the machine. I put it in an maybe it’s not. Still, it was the right way to envelope, and it’s inside the bank.” It’s just respond, and we felt better for having faced the Deb and Brad Schepp another anonymous act of kindness to share. challenge that way. Now our beautiful home in [email protected] But sometimes, kindness isn’t so easy to give or our beautiful town is even more beautiful, and take. One recent Sunday morning, while life looks quite good from where we sit. n waiting in a long and dreary line at the local 22