Ziebart International Corporation Worldwide leader of automotive aftermarket products and services
When a company’s name becomes synonymous with service that it represents. For example, Jacuzzi is only the product or a service that it provides, it’s said that a type of hot tub – not all of them, but people enjoy its brand has become “genericized.” This happens “taking a Jacuzzi.” Kleenex is a brand of tissue – there when the company, itself, or one of its products, be- are others, but people ask for a Kleenex. And Google comes so ingrained in consumers’ minds, that they is a company that invented a search engine - not a conflate it with the general product category or specific verb that means to look for something while surfing
2 Business View Magazine AT A GLANCE
WHO: Ziebart International Corporation
WHAT: Worldwide franchisor of the Ziebart brand of automotive aftermarket products, services, and stores
WHERE: Headquarters in Detroit, Michigan
WEBSITE: www.ziebart.com
crafty inventor began to experiment with a rustproofing process for its body panels. Within a few years, he had perfected his sealant and, along with two partners, opened his first rustproofing shop in the Detroit area to offer his proprietary process to local car owners.
Baker explains that before Ziebart, car manufacturers had attempted to rustproof their vehicles prior to sell- ing them, “but they were not successful at it. In the beginning, they were actually afraid of the liability,” he says. “American Motors tried it, but were stymied by some technical issues in the plant environment when they were manufacturing and assembling their vehi- the internet. cles.” So, rustproofing became a strictly aftermarket According to Dan Baker, President of Ziebart Corpora- procedure known as Ziebart Rust Protection, and of- tion, his company has been safely ensconced in the fered only after a vehicle was sold. realm of genericized brands for decades because, as the originator of the scientific process of protecting a Ziebart owned his company for several years, and when car or truck from the ravages of corrosion caused by he decided to expand in order to meet the growing de- rain, snow, salt, and ice, “you don’t get your car ‘rust- mand for rustproofing, he brought in Roger Waindle, proofed’” he says, “you get it ‘Ziebarted.’” who had both franchising experience and expertise in the field of corrosion studies. Their first U.S. fran- Ziebart, the company, was founded in Detroit, Michi- chise opened in Detroit in and the first international gan in 1959, by Kurt Ziebart, a German immigrant franchise opened several years later in nearby Wind- who came to America in 1953 and landed a job as sor, Ontario. Waindle bought the now prosperous busi- a mechanic in a local dealership. While rebuilding a ness and renamed it Ziebart Process Corporation. The wrecked Packard automobile in his spare time, the company was later purchased by E. Jan Hartmann who
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BIG BRAND… SMALL INVESTMENT
began franchising operations worldwide. “From those what he called a ‘manufacturer’s anti-corrosion war- humble beginnings,” says Baker, “today, we have a ranty,’ that basically said that if you bought a new company with over 400 locations and 800 processing Chrysler vehicle, it would be warranted against rust centers in 33 countries.” for either three years, or 100,000 miles, depending on the vehicle. When that happened, even though they For many years, rustproofing was the only product that had not changed the way they were building vehicles the company offered. Since, for most people, their au- – it was strictly a marketing move to try to survive and tomobile is typically their second largest investment keep market share - it had an impact on the automo- next to their home, and cars did rust, Ziebart’s suc- tive after-market, in particular, rust protection. And the cess came from offering a process that gave car and reason it did was, at that point, a sizable portion of the truck owners a way to protect their investment and after-market rust protection was either being done at, keep their vehicles safe from the destructive power of or sold through, car dealerships. So, Chrysler dealers * corrosion. But that all changed in 1987, when Lee Ia- started telling their customers that they had this man- See your return on investment in a little over a month. cocca became President of the Chrysler Corporation ufacturer’s warranty and that they no longer need rust at a time when the legacy car company was struggling protection. Soon after that, of course, General Motors Becoming an authorized Rhino Linings® applicator with financial difficulties. followed suit, and came out with an anti-corrosion war- has never been easier or more affordable. ranty, and then Ford Motor Company, and Toyota, and Join the brand leader. Baker recounts the events: “Chrysler came out with Nissan. So that had a tremendous negative impact on www.rhinolinings.com/join | 1-800-422-2603
*The return on investment is based on the starting package price and approximate profit of $250 per truck bed liner. Rhino Lin ings Corporation reserves the right to modify, adjust or terminate all pricing, sales, marketing and other programs. Businesses are independently owned and operated. ©2016 Rhino Linings Corporation. All rights reserved. 7291 BusView 0116 4 Business View Magazine RhinoLinings7291BusView0116.qxp_Layout 1 12/16/15 9:24 AM Page 1
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See your return on investment in a little over a month.*
Becoming an authorized Rhino Linings® applicator has never been easier or more affordable. Join the brand leader. www.rhinolinings.com/join | 1-800-422-2603
*The return on investment is based on the starting package price and approximate profit of $250 per truck bed liner. Rhino Lin ings Corporation reserves the right to modify, adjust or terminate all pricing, sales, marketing and other programs. Businesses are independently owned and operated. ©2016 Rhino Linings Corporation. All rights reserved. 7291 BusView 0116 Business View Magazine 5 printing ■ design ■ e-procurement ■ mailing ■ digital books
6 Business View Magazine the automotive aftermarket for rust protection. And it started to grow. In the 1980s, we were doing about wasn’t because cars weren’t rusting; it was because $100 million in annual sales and 80 percent of our customers were being told that they no longer needed business was rustproofing; today, we do about $170 rust protection.” million, and about 20 percent of our sales come from rust protection. We did that by changing our product Now, though, Ziebart realized that it had to diversify line and evolving our business model.” its revenue stream in order to survive. So it added paint protection, interior protection, sunroof installa- While Ziebart is still largely a franchise operation, the tion, and other accessories for cars and trucks, such company still operates a handful of corporate-owned as trailer hitches, tonneau covers, step bars, sliding stores: three in Detroit; three in Minneapolis; one in rear windows for pickup trucks, and 12-volt electronics. “The rustproofing business was still large,” says Baker, “but to keep growing and maintain market share, we bought our largest competitor, Tuff-Kote Dinol®. Your customers That gave us 150 additional lo- cations.” Our financing
The next level of diversification was the detailing business. “We With over 80 years of retail heritage, we bring bought Tidy Car®, a Florida together payment solutions and deep industry company, so we could learn the expertise to help you engage your consumers in detailing business,” Baker says. new and more meaningful ways. “Then we partnered with a com- pany in Canada, called Speedy Find out what Synchrony Financial can do to help Auto Glass®, and got into the drive traffic, increase average transaction size, and auto glass business.” Next, the build repeat business at SynchronyBusiness.com/ company partnered with Rhino AUTOMOTIVE or call 1-855-433-5549. Linings USA, the leading brand in spray-on truck-bed liners. “So we had franchises that in the beginning were singularly branded as Ziebart, that were now doing automotive aftermar- Engage with us. ket,” Baker explains. “Speedy Auto Glass replacement, Rhino Lining spray-on truck bed lin- Credit is extended by Synchrony Bank. ers, and the detailing business
Business View Magazine 7 tion, the National Glass Association, and the Veterans Transition Franchise Initiative. In addition, prospective franchisees are solicited via tradeshows and various franchise websites. “Most of our leads come digitally, when people are using the internet to search for fran- chise opportunities,” says Baker.
Ziebart’s President touts the advantages of becoming Chicago, two in Cleveland, two in Columbus; and one a franchisee. “We have about the highest gross profit in Pittsburgh. According to Baker, company stores are of any of the aftermarket automotive franchises I’m the best places to get direct feedback on marketing aware of - especially when you compare us to paint and advertising initiatives as well as serving as labo- and body or mechanical. This is a business model ratories where future district, regional, and technical that’s proven, and as a company we have been innova- support managers get their training. tive in keeping it current. Anybody who wants to be in business for themselves should definitely look at the The company markets its franchise opportunities Ziebart business model,” he claims. through various associations to which it belongs, in- cluding: the International Carwash Association, the In addition to its customary product offerings, Ziebart International Detailing Association, the International has begun growing the film side of its business, which, Franchise Association, the International Window Film in the beginning was just window tinting. Now, it offers Association, the National Automotive Dealers Associa- an optically-clear film that goes on the outside paint of
8 Business View Magazine a car or truck. “It protects against stone chips, surface rust, scratches, nicks, insect stains, small road debris and sand,” says Baker. “It keeps your car looking like new without changing the appearance of the outside of the vehicle. When you’re more than three feet away, you literally cannot tell that the product is on. It’s a popular service and it’s growing every day, so we add- ed that. But the newest thing that we’re in the process of doing right now is a new franchise called “Fine Lines Graphics.” Their features are color change, and strip- ing wraps, and advertising graphics for fleet vehicles – service trucks for plumbers or electricians or delivery services or flower shops, for example. And that’s what we’re just getting into in the last 18 months. We’re im- mersed in bringing that into the Ziebart system and then growing this new Fine Lines franchise.”
Baker also maintains that there has recently been
Business View Magazine 9 Dan Baker, President of Ziebart Corporation a tremendous resurgence in the rustproofing busi- ness, as well, largely driven by the increased sales of light trucks, minivans, and SUVs - especially because shine the competition. “There are no national or in- of the long-term financing arrangements that -deal ternational companies that offer the complete service ers have made available for these vehicles, such as lineup that we do,” he says. “Most of our competition 84-month car loans. “A truck person will invest two or is regional in individual categories that we do business three thousand dollars in after-market purchases, the in. The thing that makes us successful is because of first twelve to twenty-four months of ownership,” he our wide range of product offerings. When you have says. “We have financing available, where people can what we have available in our stores, your up-sell and spend 1,000, 1,500, or 2,000 dollars on their vehicle cross-sell opportunities are fantastic. And because and pay for it with no interest and with terms where we’ve been in business since 1959, we are the brand the cost is anything from a few to a hundred dollars that people trust. We’re professional and we know a month. They’re able to protect their investment and what we’re doing. And we have the solution to meet keep that car looking like new for as long as they own their needs to keep their car looking like new for as it, so that when they do pay it off, in 84 months, if they long as they own it. And that’s really the proposition want to trade it in, or sell it themselves, the vehicle is that we operate under and keeps us moving forward, in good shape and it retains its retail value.” today.”
Although Ziebart is not the only player in the market- PREFERRED VENDORS place, Baker believes that its longevity, its diverse Rhino Linings - Since 1988, the mission of Rhino Lin- product line, and its trusted name, help the brand out- ings has been to develop top quality, proprietary, high
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performance polymers. Today, the company is the brand name leader in the sprayed-on truck bed liner industry, with coating products suitable for industrial, commercial, and retail applications. The Rhino Lin- ings network consists of more than 2,000 applicators and contractors in more than 80 countries around the world who set the standard in the protective coatings and building product industries. - www.rhinolinings. com
Distinctive Details – Manufacturer and distributor of premium reconditioning products for the car wash and car dealer industries – cleaners, degreasers, waxes, polishes, sprays, detailing supplies, etc. The company also offers private label programs to its customers in- cluding artwork, packaging design, formulating, and product manufacturing. - www.distinctivedetailsinc. com
Business View Magazine 11 www.ziebart.com