As a business owner you come to expect that the only one who can get the job done is your self. The old saying “if you want something done right, do it yourself”, is how most small business owners feel. I am certain this comes from starting from scratch and growing the business up. It is your pride and joy, and your blood sweat and tears that you have put into the business. YOUR reputation is on the line, not that of the people that work for you, and consequently we all become a bit overprotective of what we have toiled so hard to build.

Over the past month or so, I was given an opportunity to step back and gain some perspective. To look at our business and my employees from a different point of view. About a month and half ago I was very ill. I was dealing with high fevers and the accompanying sweats and chills that come with them. The doctor says it was the Flu and I tried like hell to work through it. After three weeks of the “Flu” my wife finally convinced the doctor that there was something else wrong and they admitted me to the hospital.

During my stay they ran a battery of tests and finally found the culprit, an abscess the size of a small orange inside my liver. Little did I know how dangerous this was, and had it ruptured I wouldn’t be here today writing this. But they found it, drained it and now I am on the road to recovery. The hardest part of this whole thing has been the 3 weeks of work I missed. Those who know me, and those who have worked with me for years, know that I don’t miss work. “Sick Day” does not exist in my vocabulary.

The point of all this is not ask for your sympathy or thoughts and prayers. They are appreciated but not at all the point of this rant. The point is that the entire time I was sick, and the week I spent in the hospital, Restylers’ Choice ran jut like it does when I am there. The managers stepped up and made the decisions I would normally make, the other employees showed up and did their jobs. The company kept humming along. I was bothered rather infrequently when a manager needed some input or some help on a sticky issue, but all-in-all I was astounded.

What this time away gave me was some much needed perspective. I know now, that I can focus on the big picture items, the new projects, the products, the new services we want to offer. I can focus on the things I should be focusing on, because now I see that the team at Restylers’ Choice can run on a daily basis without my constant guidance.

The point is that as small business owners sometimes you have to step back and trust and appreciate the people who work for you. Unfortunately for most of us this realization happens out of necessity and not desire. Take a step back look at your operation and realize this now, not because you have too, but because you want to.

Thanks to everyone at Restylers’ Choice for the wonderful job that was done in my absence, but don’t get to used to it, because I am back, and don’t plan on going anywhere too soon.
 
Doug Jacobs

Lately, we have had a few issues with customers who seemed to dislike our return/reshipment policies. Our policy is based upon the many experiences we have had in this industry, and when you step back and look at the situations with an agnostic eye, you will see how much sense it really makes.

First, let's explain a situation and how our policy would apply. Let's say you ordered a spoiler for a 1996 Toyota Camry. This happens to be a red spoiler, and we paint it the correct color for the car as per the code. However, since the car is 13 years old, the paint has faded and you are not happy with the color match. You call us up and ask that we reshoot a new spoiler and ship it to you in hopes that this second spoiler is a better match.

Our policy dictates that we will do exactly as you have asked, paint a second spoiler and ship it to you so that you can take care of the customer. However, we are going to bill you for this replacement product. It makes no difference to us whether you made the mistake or we made the mistake, we will bill you for the replacement product. When we receive the incorrect product back from you we will refund your money for the returned product.

This is where we always seem to run into trouble. Customers will invariably get mad at us for charging them for the replacement. “It was your mistake” or “Why should I have to pay twice?” We hear it all the time.

The reason is very simple. If you have no investment in the product you have no incentive to return the defective/incorrect product to us. So in the long run we get stuck giving away free product and have no way to get the other product back from you. Now, however, if we tie up your cash in the product, you will make darn sure that we get it back. You will also call us on multiple occasions to make sure we got it, and that you will be getting your refund/credit. Funny how human nature is.

Now lets examine the “why.” This is pretty simple to explain as well: we have been burnt HUNDREDS of times in these situations. We call and call and call checking on the return and we get the typical answers: “I sent that back,” “I will do it right now,” “As soon as I am back in the shop I will do it.” Just this week I got into an email exchange with a customer who we “bent the rules for” and shipped out a replacement spoiler for no charge in SEPTEMBER. Guess what–still no spoiler. And when I asked for my spoiler or for a payment for the second spoiler, suddenly I became the jerk. Funny how that works, we did a favor and now we are the jerks.

Logically speaking, could you ever imagine going into your local Wal-Mart, proceeding to the customer service desk and having this exchange: “I bought a shirt here last week and when I got home I found a tear under the sleeve. Can I get a new one today for free and return the bad one a week from now, or when I find it convenient?” They would laugh you out of the store, just as they should. And the funny part is that you would never even try that because you know how absurd it is.

Obviously, this topic came up because the situation that arose this week. I have known a lot of you guys for years, and I value every bit of business you bring to us. These policies are not put in place to punish you or to reflect on how we view you or your business. If we all live by the policy then no one has a reason to get mad. It keeps us all on a level playing ground and from that vantage point our relationships can continue to grow and flourish.

Lets all hope the business climate heats up as the weather begins to break!
 
Doug Jacobs

They say that crap rolls down hill, and as a warehouse distributor, we live in the valley between two mountains: customers on one side, vendors on the other. I guess you have to be a WD to see how poetic those two statements really are.

I am not complaining, I really enjoy the role we serve in the industry, and I wouldn’t want to have to do your job. You too have demanding customers and issues with suppliers. The reality is that in trying economic times, we all need to adjust our expectations and learn to deal with those things that don’t go quite our way.

In order to survive in these tough times, many companies have had to adjust the way they run their businesses. Cutting back on staff, reducing inventory, and changing policies are all the prudent things you or your suppliers should be doing. Each of the decisions has both its plusses and its minuses and when these decisions are made they will affect you and your ability to do business. If you have reduced inventory you rely more on your suppliers to get you product. If they have reduced inventory then it takes them longer at times to fill your order. Once again the “rolls down hill” axiom proves it self true.

The issue really can get ugly when vendor lead times are excessively long, mainly due to sourcing things from overseas. We are seeing this now as we are waiting four to six weeks for products that we used to get in days.

As the winter thaws, and we are just now seeing some signs of business returning to more normal levels, we are seeing more and more issues like these. Businesses who were running with reduced inventories are now being caught with their proverbial “pants down.” It affects us and in turn it will affect you. It is not that we are not trying to get product here for you, But more that there is less product available in the pipeline for us to get.

There is nothing more frustrating then having to work harder than normal to find a little work to do and then have to put off that job because parts are hard to find. The economy made us all pull back, it is going to take a little time for all us to ease back on the gas.

The bottom line to all of this is pretty straight forward–we all need to adjust our expectations. Not that we should expect less service, or expect to be disappointed, but instead to expect things to be a little harder than normal. The economy has affected us all in the pocket book and we shouldn’t be surprised for it to go after our expectations too.
 
Doug Jacobs

It is a simple, three syllable word that has very powerful connotations. What I find most interesting about the word is that it can mean very different things to the same person depending on which side of a relationship they are on.

I have always considered myself a very loyal person, many times to my own fault. Growing up I was “loyal” to my 10 favorite bands. My first car was a Ford Mustang, and I have been a loyal Ford buyer ever since. My first computer was an Apple, and to this day my business runs on Apple computers, and my cell phone is an iPhone. My wife and I are both graduates of the University of Cincinnati and are loyal fans and supporters of their athletics programs.

When it comes to business, I feel I have always been the same way. I have been extremely loyal to our vendors, companies like Universal Products or Trim-Gard. We have been offered many times to change lines to ones that maybe offered better pricing or different offerings. The reality is we have worked with these vendors to improve their products and in-turn they have worked with us to improve our service. This is loyalty to me.

On the other hand, I have always strived to work with, protect, and help grow the businesses of my customers. The thought has always been that if it’s good for our customers then, in the long run, it will also be good for us. Over the past month, I have been involved in several separate conversations that have made me begin to realize that maybe my loyalty has been one-sided.

I had one customer who owed RC over $3000 for the better part of a year. We worked with them and agreed to take our payment a little at a time, and now he is close to being “caught up.” The other day when he asked us to do something that we could not do under the current state of his account we were told...”that is fine, I will take my business to someone who wants it.” Is THAT loyalty? Is that what we deserve when we have worked hard to help a guy out of a jam?

Another situation that came up involved a customer who was buying most of his products from a competitor. The reason? Well when I asked I was told “it’s complicated”. Complicated? More complicated than the fact that he stuck the previous owner of Auto Accessories Warehouse for a TON of money, and I allowed him to set up an account and get back into business? More complicated than the $2500 his brother stuck me with when he went into business for himself and promptly disappeared? Complicated??? Oh yes, loyalty can be complicated - especially when you are on the giving end.

Finally, we had a good walk-in customer in our Dallas warehouse come in to complain that we were selling to one of his customers. He asked us to stop. We then asked him a couple of questions like: Why are you buying products from one of our former employees when you could get it from RC and why are you buying clear bras from our competitor when you could buy it from RC. He stood there and looked like a deer blinded in the headlights. How dare we ask these questions. Once again loyalty cuts both ways.

The reality is that today business is hard to come by for everyone. Many times it may seem like the best answer for your business is to do whatever it takes to save a dime here or a dollar there, never looking at the real impact to your bottomline. You want your suppliers to protect you and be loyal. You want them to be there for you when you need a bailout or some extra time to pay. You expect them to help you out when a job has put you in a pinch. To be honest, Restylers’ Choice loves to be there for you, we love to be in a position to help you out, anyone who knows me and my involvement in the industry, knows this is true.

Just don’t be in shock when someone expects the same thing of you.

Doug Jacobs

Put your hands up, and prepare to scream your guts out. We are on one hell of a roller coaster ride right now, and it isn’t gonna end anytime soon. Obviously, I am talking about the current state of our economy and more precisely the automotive market.

We hear all of the doom and the gloom all over our TVs, day in and day out. It gets old and discouraging, but we can’t afford to fall prey to the talking heads. As small business owners, we need to be the driving force behind this economy. We need to find new ways to innovate and to make money when everything we know has been turned on its ear.

Just a few short years ago, our industry was selling 16 million cars a year, setting record sales year after year. Consequently, the market for accessories and restyling products for both new and used cars flourished. During this time it was easy to find work and even easier to get paid to do that work. However, over a very short period of time, gas prices spiked, credit crunches crunched, and car sales fell to levels we haven’t seen in 20 years.

Predictions are calling for over a 40% drop in car sales, to below 10 million units. Now the news talks about auto industry bailouts and financial rescue packages. The reality is that this is the new reality. We have to accept and keep plugging. I have heard many customers tell me: “things are so slow that I am just gonna pack it in, and find something else to do”, or even worse: “my dealers aren’t doing anything so I am not calling on them.” Neither of these will do our industry any good, but the latter is like throwing in the towel for a slow and painful death.

We need to find ways to make money, find those new opportunities in your area. Keep making those calls on your dealers. If you are the only one doing it you will be the beneficiary when things start to turn around. And they will!

And when they do things will look different: the number of car dealers will be drastically reduced, the number of brands maybe less, and most definitely; the amount of your competition that survives will also be less.

You really need to look at this economy as an opportunity.

Opportunity to catch your breath and evaluate your current position.

Opportunity to focus your business, and make what you do as profitable as possible.

Opportunity to increase your level of service to your customer base.

Opportunity to push yourself to learn new skills and products.

At the SEMA show last month we saw a lot of these opportunities. And they came from guys just like you. We honestly expected the show to be a dismal failure; with all of the gloom and doom, we knew there would be less exhibitors and less attendees. But what we found was this was true, but those that were there, were there because they care about surviving this market. They wanted to learn and grow and make their own opportunities. Just as we all need to do.

Since we can’t control this roller coaster we might as well just enjoy this ride, and make the most out of it.

Doug Jacobs

As the economy continues to worsen, it seems that we are dealing more and more with product returns. We completely understand the need to return unused and unneeded inventory, as such our policies are designed to make this process as simple and straight forward as possible. There are several types of returns that we deal with; defectives, unneeded products, human mistakes – each requiring a different set of rules and processes to follow. The process of dealing with these is known as “Reverse Logistics.”

I would like to discuss each of these things individually and try to answer many of the questions or issues that come up.

Defective Products
In order for Restylers’ Choice to be reimbursed from our vendors for defective products, we must follow the procedures set by our manufacturers. Sometimes this includes completing a series of forms and working through a set of procedures with the customer.

“I have been doing this for 25 years...” We hear this response more times than you possibly imagine. Many times we need to ask questions that seem as if we are treating you guys like idiots. We know you are experienced professionals, but just as paint systems and adhesives have changed over the years, sometimes your technique may need to change as well. If we don’t know how you put it on, we can’t help you correct any problems you might be having. Many times “defective” products are really not defective, just improperly handled or installed.

30 Day Returns
Restylers’ Choice has a very easy to use return policy. We will take back any items you purchased in the last 30 days with no restocking fee. We will even send you a call tag to get it back (you will be charged for the shipping). Keep in mind that we do not take back custom graphics or painted spoilers under this policy. Also, it is imperative that you read the directions that come in the envelope with the call tag. If the products are not like new, with all of the hardware, instructions and packaging, then you will not get full credit for the item! And please make sure you only send in the products that are listed on the call tag paperwork. Extraneous products or wrong products just make our job a living nightmare.

Mistakes
We all make them. I know Restylers’ Choice does (more than I would like) and I am certain that you do too (but rarely admit it). Even I make mistakes (but don’t tell my employees–they think I am perfect and I really don’t want to burst their bubble). In order to improve our accuracy we recently installed a new phone system that allows us to record and monitor our calls. It has been a godsend when trying to get to the bottom of mistakes. We can listen to the call and see where the mix up happened and where we need to improve our processes.

We try to take care of your mistakes and ours as quickly and painlessly as possible. Your mistakes are generally handled by our 30 day return policy. Make a mistake on a custom graphic or a painted spoiler and we will recut it or repaint it for half price! Our mistakes, however, get a little more complicated. First, we have to have products back. Even the dumbest, cheapest little graphic in the world we have to get back. Could you walk into a store and tell them the pair of shoes you bought last week have fallen apart and you threw them away, then expect them to give you credit? I wouldn’t think so, and it is the same here. We need products back to make sure we can document and correct the mistakes. Your help and understanding here is imperative!

The final issue with mistakes and defective handling involves the billing. Unfortunately, we must bill you for any product that is shipped out in advance of receiving the returned products. I know many of you gripe about this policy, but it really makes good business sense. And it keeps our relationship on a very fair and even plane.

Typically, we hear responses like, “send it to me free and I won’t get a credit when I return the other defective/mistake item” or “it was your mistake, why should I pay for it twice?” That sounds great, but your lives and work are hectic and busy just as ours are. Without your money tied up in the product, your attention rarely lies in getting the product back to us. Without that defective or wrong product back in our hands, we’re out the cost of the product. We can’t maintain our prices and inventory if we are losing money on “free” products. And if you have dealt with us for any time at all, you know we are fair and prompt at getting you your credits!
I hope that this article was both informative and helpful to your business. Let’s work together to make as much money as we can in these trying economic times.

Doug Jacobs

As the price of fuel has increased and the business climate worsened, we have had a rash of customers complaining about freight charges. It is totally understandable to be concerned about the expenses for your business. We are very mindful of the money we are spending getting product to our warehouses whether from vendors or from our own internal transfers. As a result, I thought the timing was right to give an overview of the charges we face that add up to those freight charges you see on your invoices.

First and foremost there is the base rate of the freight. These charges are based upon the weight and size of the package. These rates increase every year around the first of the year. Traditionally UPS has based all ground freight rates solely on the weight of the package; 2 years ago they implemented “dimensional weighting” to ground packages. This means that a large package that weighs very little, will be billed at a higher weight due to its size. This change has added a great deal to the cost of shipping items such as fender trim, bug shields and light ABS spoilers.

Next, UPS likes to tack on “accessorial” charges to the base freight. In our business, “Accessories” are things that make your car look better. In the shipping industry they are things that make your freight look worse. These included “Delivery Area Surcharge” (for those zip codes that UPS determines are “off the beaten path”) and “Additional Handling” (for packages not encased in cardboard or over 60” in length). These charges can add up quickly again on spoilers, and bugshields.

The fees keep adding up when you start getting into insurance. UPS has always insured the first $100 of a package in the base rate of the shipment. Then for years you added a small charge per $100 of value, which is currently 40¢. However, several years ago UPS made a change to their insurance policy: after the initial $100 you had a minimum insurance charge of $1.20, which covers you up to $400 of value before you see any more charges. This has resulted in an increase of insurance charges on the most of our packages of roughly a dollar.

Over the past several years UPS also began implementing fuel surcharges on all shipments. This has added 10-12% to all packages shipped. This percentage fluctuates on a weekly basis and is up to the discretion of UPS as to what this percentage will be.

Finally we add a $1.50 “handling charge” to all of our shipments that helps us to defray the costs of boxes and packaging materials. While we would like to do away with these types of charges it is not possible to offer the prices we offer, as well as the many free freight programs we have and also absorb all of the packaging costs.

The reality is that UPS controls the game. They decide what charges get applied, how they get determined, and who is going to get them. We are at their mercy, and before you even think about it: FedEX is the EXACT same, switching does you little good. My best suggestion for you is to pass the charges on to your customers. These are costs of doing business, and everybody faces them. Also, if you can swing it, your second best option is to place free freight orders. Organize your purchasing to optimize your freight charges. Order 3 spoilers on Tuesday instead of one on Monday and then 2 more on Tuesday. Or save up your orders and only order 3 times a week instead of 5 times. We give you the tools to beat the system, and you need to utilize them to the best of your abilities.

Doug Jacobs

I have touched on this in the past several times, and I really want to spend a little time focusing a whole article to the topic of WRAPS.
First, lets start with the basics: what is a wrap? I know most of you know what I am talking about, but for those who don’t a wrap is complete digitally-printed graphic that covers most, if not all of a vehicle’s painted surface.

Now that we have that out of the way, selling wraps can be a very profitable business. In this market we all need to find new ways to make more money and keep ourselves busy. But getting into a new business segment can often be a very daunting task, one that brings to mind many questions:

How do I start selling wraps?
How do I figure out a price for them?
How do I get one designed?
Where do I get it printed?
How do I install it?

These are just the start of the many questions you probably have running around your head right now. The good thing is there are many readily available resources for answers to all of these questions. The best place to start is attending one of the many regional sign shows. There you can find answers to most or all of these questions. Sign magazines {specifically the one that is titled Wraps) are also great resources for much of this same information.

I also want to introduce to you a new service that Restylers’ Choice is offering starting this month: Wrap Warehouse. Our Wrap Warehouse is designed to provide tools and answers to each of these individual questions. Allowing you to pick and choose which pieces of the proverbial “pie” you need to complete the job.

I strive to not make these articles into big commercials, so at this point I suggest you call one of our CSRs if you are interested in learning more about Wrap Warehouse, or stop by www.wrapwarehouse.com in about a week or so and learn more (we dont have it quite ready to go yet).

Whatever way you chose to learn more and to further your business into doing wraps, I wish you the best of luck.

Doug Jacobs

Every few years, a company pops up offering to sell at cheaper prices and save you big money by not using a distributor as a “middle man.” That all sounds great, and if it were true then there would be very few distributors needed, or even left in business. Now, obviously I have a vested interest in this situation, and I have some very good points to back up my opinion.

First, in this sluggish economy, placing orders from 15 different sources and paying 15 different freights makes little sense. It is much easier to call 1-2 distributors to get the products you need. The distributors have freight programs to help you save freight charges and by consolidating your orders at a few places, you are easily able to reach those freight pre-paid orders.

Sure, I know many of these “direct sellers” have pre-paid freight programs as well, but let’s look at the inventory impact of these deals. Let’s assume each of six different vendors has a $100 free freight policy. Now, let’s assume you need $80 worth of moldings, a painted spoiler, $50 of pinstripes, $90 of chrome accessories, 2 bugshields, and a clear bra kit. At five of those six vendors you would have to order “extra” products to get the the free freight level. By calling a distributor who has a $500 freight paid policy, you would save on the extra inventory you had to buy at those other four places, and still save the freight.

How about the extra savings you get when buying “direct?” In some cases this may be true. However, in most cases, a distributor buys in much higher quantities and is able to pass the volume savings on to you. So “direct” may sound good, but often leaves you getting the same exact deal, or worse, than you can get through your distributor.

Finally, in order for you to make money, you need to be out selling and installing product. Not tracking down orders and calling your vendors to see where those orders are. By working with only a few distributors, you can minimize your time-managing the purchasing process and maximize your profitability. You don’t need to wait around for ten different deliveries on five different carriers, just the one of two that come from your combined sources.

There are many other benefits to using a distributor: consolidated, simpler returns; defect handling; better hours; easier freight programs; etc. The bottom line is that in these trying economic times we all need to find ways to save money and maximize our profits. Buying “direct” makes that strong pitch, but when you add up the real costs, a distributor is your partner to profits. We are here to help you succeed, and only by your success do we succeed.

Doug Jacobs

While I still consider myself a youngster in this industry, I have been involved with the professional restylers for nearly
20 years! And during that time I have seen good times, bad times, great times, and let me tell you, this is the worst I
have seen it.

Many of you remember the UPS strike over 10 years ago. That was a tough time. We also have thrived through the
record high volume of vehicle sales years over the past decade. Today, however, we are dealing with compounding
problems that have made it extremely tough to do business.

Record high gas prices, dwindling vehicle sales, home value declines, stagnation in Washington waiting for the election
to be over, etc. etc. etc. They all have compounded themselves on us at one time. So what do we do?

We need to be looking outside the box. There are plenty of opportunities that still exist in our industry. People are
holding on to their cars longer, fi nd ways to get to these people and upgrade the look of their ride. Retail works has
been the bane of many mobile installers, its time to look there for more opportunities. Restyling a person’s existing car
makes them happy to hold on to it, when they can’t afford to replace it.

Protection packages are another hot item. Present options to your customers to help vehicle owners protect their
investment. Clear bras, moldings, door edge guards, these things bring added value to the investment of a new vehicle,
and are great products that work on any vehicle, including the gas-sipping compacts that are selling so well these days.
Lettering, logos and wraps! Both small and large companies are investing in their business to help maintain or even
grow in a down economy. They do this through advertising and promotion. Getting involved in doing corporate logos,
and even vehicle wraps pay big dividends. Wraps can take several hours to complete and pay big dollars for your time.
They are a great way to expand your offerings without a huge investment in retraining.

The time has come for you to take your blinders off. It has been very easy to make a living in this industry for years,
but times are changing, and you need to change too. It frustrates me when I hear an installer say “I don’t do x, I only
do a.b.c” That shortsighted attitude may just end up costing you your business, and NOBODY wants that to happen.
Doug Jacobs