Stop Skinning The Cat And Start Serving Customers

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Aloha and welcome to another candid conversation.
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This morning we're joined by a gentleman who's got really deep experience in the automotive industry.
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And I wanted us to just start out with a conversation about what we find with the is going on with the workforce today.
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Because it's big changes.
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So let me introduce you to Jim Turborby Centorbi.
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You've read a couple of his brogs.
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He's a very insightful man, very thoughtful man, a very experienced man.
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So with that as a build-up, I hope I didn't pump too much sunshine, Jim.
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Welcome aboard, man.
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Thank you, sir.
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Welcome.
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Nice to be here.
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Yeah, you've got a background that I should show, but I don't want to.
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That's that's right outside my window.
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Yeah, I know.
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That's why I chose it.
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Yeah, and I'm jealous.
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Well, it took me, don't forget, I'm almost 80 years old.
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It took me a long time to get here.
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You got plenty of time, man.
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But uh I I recommend it to anybody.
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It's it's phenomenal.
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Which island?
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Oahu.
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Yeah, now there have there's something you have to realize.
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There's only one island out of the five majors that has hospitals.
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Oh, every other island has urgent care, and that's fine, but they're not allowed to prescribe any antibiotics, they can just do generics, and if there's any surgery required, you're helicoptered over to here.
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Wow, I didn't realize that.
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Yeah, no, most people don't.
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So, and and I found out when I had to have my appendix taken out, and you don't want to hang around much, Ben.
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That's that's pretty painful.
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You don't want to wait for the helicopter, yeah.
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So looking at automotive, looking at the construction equipment trades, I see a a number of things.
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The first one that's obvious is anybody under 25 really doesn't want to work anymore.
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Um, anybody who comes out of university has an impression that they deserve the corner office almost right away without really knowing the ins and out of the business.
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And the the last thing that's kind of happened with us, I don't know what's happened as much in automotive, is ownership or leadership has deferred leaving by about 10 years.
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So when they used to transition 55 to 60, now it's 65 to 70, and in some cases 75.
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What's it what's it look like in automotive?
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It's very similar.
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I I think we've spent a long time uh planting the seed in in children from an early age that you have to go to college to be successful, uh, which kind of downplays the the service industry.
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And uh it's unfortunate because uh we'll always need the service industry people.
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Um, so I I think you're you're spot on there with the the younger generation under 25 doesn't want to get their hands dirty because they were taught that that's not the way to be successful.
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Um but that that's not the case.
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Um and you know, I think in the automotive industry, what what hurts the reputation and and uh keeps a lot of people out of the automotive industry is is the pay plant.
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Uh frankly, flat rate in my mind is it was great in the 80s, but you know, times change.
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Uh so I I think that that needs there needs to be an in-depth look at the way that technicians are paid.
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Uh there's there's too many variables and too many uncontrollables that the the technicians have no control over.
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Uh but those things affect their pay.
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So, you know, uh flat rate it can be part of it, but I think, you know, if you're there for 40 hours, you should be paid for 40 hours.
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So and uh let me let me jump in there for a second, just to get yeah, I agree with you completely.
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And and the other thing that screwed up the 25 and down is COVID, because they got it started getting checks in 20 2020 and they didn't have to go to work.
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Yes.
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So what I did with my flat rate starting, I don't know, 20, 30 years ago, is I used standard hours, and there's a long, I mean, this is a subject for a podcast by itself.
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Everybody looks at flat rate as average, it isn't at all an average.
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So what I do is I add 15% to it.
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I mark up whatever the time is by 1.18, I set my schedule with the standard time, the average times, I quote with my flat rate 118 time, and I give the men the option, I'll pay them the 118 time.
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I don't care when they finish.
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And if they finish and instead of eight hours, they finish at six, I'll give them another, I'll give them the choice.
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You can I'll pay you another two hours, so today you'll get 10 hours pay, or you can leave now.
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And I you know, and this is a long time, it needs to be revisited, but something like that, Jen.
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Yes, and then let me flip it over to another place live golf and the PGA, or right now, the French Open, the players are getting a smaller and smaller piece of the puzzle.
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And the guy that changed that was Larry Ellison Ellison from Oracle.
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He bought the tennis tournament in Palm Springs, Indian Wells.
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And the first thing he did was he opened the field up to 96 people on both sides, the top 96 in the world, and he doubled the pay for the players, and he pissed off all excuse my language, but he pissed off all the majors because he outpaid them all.
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His deal was the people that are making us money here are the players.
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That's right, and the people that are making money in a dealership are the technicians.
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That's right.
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And too many of like the dealer principals and leaders, they're basically accountant and equipment guys, they don't understand the shop, they don't want to.
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So I don't I didn't mean to take your train of thought away, but I mean that it opens up so many doors because your comments are so on point.
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Sure.
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Well, look, well, let's take the example you just you just touched on the other end of the business.
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Look at the salespeople pay plans.
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You know, they're they're they're rewarding, uh, they're making money, but you you the technicians are are looked at like the unnecessary.
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Well, the whole back end is always looked at as a necessary evil.
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Uh I joke, I you know, the the the new name for fixed operations is the aftermarket department, but in actuality it's the afterthought department.
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Yeah.
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I I was lucky when I started in 1969.
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The guy who was still the chairman of Caterpillar was a man by the name of Bill Blackie.
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And he delivered milk behind a horse-drawn carriage in Peori, Illinois, to get his degree before in the 30s.
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Before World War II, every equipment dealer, there were seven of them, they were all about the same revenue.
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After World War II, Caterpillar was head and shoulders above everybody because they got the tank contract.
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So the mechanics that were in the Corps of Engineers and other, they got used to working with CAT.
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They come back, and here comes Blackie.
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He's an accountant.
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And he says, number one, the advantage Caterpillar has, and General Motors and others have the same advantage, is they all have the same chart of accounts.
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Because the brand they carry, GM, Forge, Dallanish, whatever, is the major brand in that dealership.
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Used to be.
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It's not so much to anymore.
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But what Blackie did was he created a book that he called Parts Gramps.
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And it had every process, procedure, report, everything in there, what to do, it follows the bouncing ball.
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He created another one called Service Gramps.
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So when I started, I was hired on a contract to fix a computer problem, so I never was really part of the deal.
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But I was always looking to solve a problem.
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So go to automotive.
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I traveled a lot.
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I bought a used Cadillac that was owned by the dealer principal, had about 3,000 miles on it.
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And I'm one of these jerks that I'll give the dealership all the repair and maintenance forever.
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I say, if anything goes wrong with it, it's yours because I'm not touching it.
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Nobody else's.
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So because I traveled so much, my wife and I take the car to the dealer, we'd sit down and have a cup of coffee.
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It only takes an hour, hour and a half, and we'd chat.
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It was wonderful.
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This one particular day, I get the car there at 7:30 when I'm supposed to be, and we go get the coffee.
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I asked, it's still about the same time.
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Yeah, about an hour, hour, hour and a half.
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So at about an hour, I go back to them and say, How are things going?
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Oh, well, we we ran into a snag, we got overloaded.
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It's it's gonna be at least an hour.
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I said, What do you mean?
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Well, we haven't started yet.
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I said, Well, how the hell do you manage your schedule?
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This is the wrong guy to do this to, right?
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Yeah.
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And I said, Well, okay, I we'll go back and have another cup of coffee, but come and tell me what's going on.
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15 minutes later, the guy comes out from the shop, tells me the car is ready.
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So I go back, get the paperwork at the service office to pay.
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Actually, it's not the service office, it's the accounting group.
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They give me the bill.
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I said, Where's the service report?
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Well, there isn't one.
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So I can I take the so I take it back to the guys.
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I said, Who did this?
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The manager did.
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I said, Terrific.
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He comes out and he said, uh, I did a quick look.
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I didn't do the whole job.
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And I said, Well, how come you charge me for the whole job?
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And he knew it was the owner's car.
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And he knew I owned knew the owner.
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So what do you think happened next?
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The three of us are in the owner's office, and the owner's looking at him.
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He said, What the hell did you do?
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And the owner said, You know, Ron has been teaching this for 30 years.
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Jesus Christ.
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It's it's unbelievable, but but you know, today, a service manager, where's their job description?
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Right.
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And and you you you nail it on the head with the cat gentleman.
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That has been my experience through you know my 40 years of of work, whether it be in an automotive dealership or an OEM, is there is no handbooks, there is no training.
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There, the software has no manuals.
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It's you know, here's your pen, here's your here's your desk, here's your keyboard, have at it.
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Uh, the lack of training is is just unbelievable.
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And so, you know, that first six months you're you're left swimming and drinking from the fire hose, trying to learn everything.
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And it just it's you know, it's one of the things I talked about uh in one of my blogs is that what happens is you have everybody doing their own thing, yeah, because they're left to interpret it.
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There's you know, it's been my experience is that most people, uh, we as a people want direction.
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Uh, we want, you know, guidance, we want rules, we want guidelines to, you know, we want to our swim lanes.
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We and and we work best in those those lanes.
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And uh, you know, one thing I discovered early on was uh when I worked at a big dealership and we had multiple teams where and and different schedules where you know different teams would come in at different times, different advisors would come in at different times.
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And what was happening was you had people coming to pick up their cars or asking about their cars like you, but you know, the advisor didn't know anything about it because that was that another team's car.
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So, you know, it dawned on me that well, I took a look at a McDonald's or a Burger King or some franchise, how how they're all the same.
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Doesn't matter whether I go in, you know, my local McDonald's or I go in to one across the country or you know, in Europe.
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They're basically you can expect the same same process.
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So that's when when I realized that, that's when I started to become more process driven and did just like the gentleman you mentioned at cat was wherever I went, I would observe and develop a handbook, a step-by-step process for people to follow as they came in.
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And then everybody was on the same page, and you knew what to expect.
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You know, if you think if you think about how we evolve as people, the very first thing we're taught is obedience.
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Yes, and the parents do it in the way to protect us.
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Don't touch the stove, you're gonna burn yourself, look both ways, etc.
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Then we go to school, and we have to be obedient again on how we write.
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I don't know that they teach cursive anymore, but used to be, and the same thing with arithmetic.
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Well, do you think it's still the same as it was, though, Ron?
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Well, my daughter's a teacher.
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It's a lack of it now.
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Well, my daughter's a teacher, grades six through eight, that's middle school in California.
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She teaches English literature.
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They have seven periods a day, six of which are with children, a classroom.
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Her classroom size averages 40, and 60 percent are English second language.
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Wow.
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And I say to her, her name's Caroline.
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I said, Caroline, how the hell does anybody learn anything?
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And she's got a master's in education, she's well educated, she's a wonderful teacher.
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I know I know I'm biased, but it's true.
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So this year in California, they moved from STEM, science, technology, engineering, mathematics, to STEAM.
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They added the arts, right?
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And guess who ended up running the arts?
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The wonderful.
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Yeah, so we have a family affliction.
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We don't know how to say no.
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Before that, there's another learning process, like you said, standard testing in America, grades four, eight, and twelve, English and arithmetic, plus or minus two points, are 30% at grade level, meaning 70% are not.
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And I'm not talking about them being on the high end, it's on the low end.
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So there's a process in California that was started in the 80s, not just California, it's spreading across the country, called avid advancement via individual determination, which is the missing element in almost every teaching piece.
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So that every class, every kid, student has to stand up once a week and give a 15-minute presentation on whatever the hell it was in that class that has made a difference in their life.
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Nice.
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So here comes critical thinking, here comes presentation skills, here comes overcoming fear, all that good stuff.
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And I say to Caroline, I said, Thank God I'm 80, I don't have to compete with these dudes in 20 years when they come out.
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I mean, that's a huge advantage, Jim.
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Wow, that's good.
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So the tide, the tide's turning.
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Well, it is, but here comes drama, and all of a sudden Caroline was doing 14 to 16 hours.
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This flat rate thing.
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And and let me give you another one that 60 English second language is obviously agricultural down the eastern end of Palm Valley.
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It's called the Imperial Valley, very, very rich ag country, but probably 80% of the workers are illegals.
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They don't have any money, they don't have computers at home.
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So here comes COVID, and the kids were sent home.
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So those kids didn't have any schooling for two or three years.
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And to make more interesting, the school board decided that teachers had to go to school and teach remotely from their classroom.
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You know, it some of these things are stranger than fiction.
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You can't you would never think to do these things.
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But it you know, what's what surprises me so much is how simple you and I are in how we think about it.
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Tell me what you want me to do, tell me what the job entails.
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Exactly.
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Help me be able to do that, train me, and then don't ignore me.
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Let's stay in touch with each other.
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Right.
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And they don't do that anymore.
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Yep.
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I it's it's been I I don't know that they ever did.
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I when I hired on a contract to fix the problem with the computer, I was blessed because I had the senior partner of the consulting company spend a day with me, eight hours, just me for four months.
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So I had 16 weeks, 16 hours of training with him.
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And I bad comment, but I probably knew inventory management at the end of that thing better than 99% of the people in the world.
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Because who the hell has that kind of intense training?
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Right, right.
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You don't see that, that's for sure.
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No, and and so that brings me to mentoring.
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We don't do that anymore.
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No, no.
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Why did that stop?
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Have you any conclusions you want to share?
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I I don't know.
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I I kind of think there there's a you know a fear amongst people, somebody taking over their job.
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Uh that seems like that was becoming more prevalent.
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Uh to me, it was more important.
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To me, that's my legacy, is the the people that I made successful.
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So, you know, I have advisors that I trained, you know, that I took from being a porter to an advisor that went on to be managers.
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That that to me is is important.
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I love that.
00:19:52.539 --> 00:19:56.379
Yes, that that's that to me is yeah, a win.
00:19:57.019 --> 00:19:59.980
Um that means I'm successful.
00:20:00.379 --> 00:20:04.299
Uh and and that's the thing I cherish the most.
00:20:04.379 --> 00:20:06.700
And I still talk to those people to this day.
00:20:06.859 --> 00:20:12.299
Uh to see them be successful is is just it's incredible.
00:20:12.539 --> 00:20:15.019
Uh, but you don't see that much anymore.
00:20:15.099 --> 00:20:25.259
I I've seen a lot of managers out there that want to keep everything close to the best, uh, for fear that they'll be replaced, I guess.
00:20:25.420 --> 00:20:30.619
Uh that's the only thing I could contribute to.
00:20:31.579 --> 00:20:39.019
You know, I another of the funny blessings that I had is I was a competitive swimmer in my teenage years.
00:20:39.579 --> 00:20:44.539
And I learned very quickly there's eight people in a race, you're up on the blocks.
00:20:45.099 --> 00:20:51.180
If I finished last, but I beat my best time, I won.
00:20:51.740 --> 00:20:52.379
Right.
00:20:53.019 --> 00:20:59.420
So from a very early age, I recognized that I the only person in the world I have to compete with is myself.
00:20:59.660 --> 00:21:00.220
Yep.
00:21:01.180 --> 00:21:11.019
And that takes away all kinds of BS relative to I'm gonna try and make you look bad so I get the next promotion or so I get the raise.
00:21:11.259 --> 00:21:15.259
There's so much of that, and then you see that, it's so disheartening to see that.
00:21:15.740 --> 00:21:16.940
Isn't it isn't it strange?
00:21:17.099 --> 00:21:20.139
Now, I I I guess I should have expected it.
00:21:21.180 --> 00:21:33.579
It because you know, the environment society today, and I I don't want to get into the man, man, woman, woman type of thing, but if you're husband and wife and you have a couple of kids, you're both probably working.
00:21:34.299 --> 00:21:38.700
If you've got a half decent amount of money, you'll have them go to a daycare after school.
00:21:38.859 --> 00:21:42.059
Otherwise, they're going home to an empty house, there's nobody there.
00:21:43.019 --> 00:21:50.940
You get home and you have dinner together, which used to be the time that everybody could talk to each other, and and and now they're so exhausted.
00:21:51.099 --> 00:21:51.420
Yep.
00:21:51.660 --> 00:21:54.779
And they, you know, so the dinner table, go go to look at a restaurant.
00:21:54.859 --> 00:21:59.900
I don't care if it's McDonald's or an expensive place, the kids are on tablets.
00:22:00.139 --> 00:22:00.779
Yep.
00:22:01.339 --> 00:22:02.539
It drives me nuts.
00:22:02.700 --> 00:22:13.900
So if you look at statistics, last year, 2025, four and a half hours a day, school aged children are on social media and bless you, 30 minutes a day, they're reading.
00:22:15.180 --> 00:22:16.619
Is that upside down or what?
00:22:16.779 --> 00:22:17.180
Jesus.
00:22:17.420 --> 00:22:18.299
Yeah, yes, sir.
00:22:19.420 --> 00:22:26.139
Yeah, that that uh the computers and the phones have not made our life simpler, that's for sure.
00:22:26.299 --> 00:22:28.059
Uh they've done the exact opposite.
00:22:28.220 --> 00:22:30.619
They've captured us and you know.
00:22:31.740 --> 00:22:33.420
I used to pick up the phone, Jim.
00:22:33.500 --> 00:22:39.099
I'd go to a counter, I'd pick up the phone, I'd put the receiver by the guy's ear, and I'd say, What's that noise?
00:22:39.579 --> 00:22:42.220
If it looks like I've thrown a horn or something.
00:22:42.460 --> 00:22:43.900
He says, What do you mean?
00:22:44.139 --> 00:22:45.339
I said, You hear that noise?
00:22:45.500 --> 00:22:46.299
He said, Yeah, what is it?
00:22:46.379 --> 00:22:47.259
The dog's home.
00:22:47.339 --> 00:22:47.900
Oh, okay.
00:22:48.059 --> 00:22:49.740
How often do you hear that?
00:22:50.460 --> 00:22:53.740
I said, I'll bet you every time you pick up the phone, there's somebody on the other end.
00:22:53.900 --> 00:22:54.940
True or false?
00:22:55.420 --> 00:22:56.700
Absolutely.
00:22:59.579 --> 00:23:06.299
I had I had a counter very early in my work clear, I hit a counter of eight guys.
00:23:06.700 --> 00:23:09.099
Telephone and counter sales.
00:23:09.740 --> 00:23:12.779
And my cubicle is looking at the front door.
00:23:13.259 --> 00:23:19.099
To my right is the receptionist for the company, a couple of comfortable chairs, a table, a phone.
00:23:19.339 --> 00:23:24.700
And to the left of the to the right of the door, to the left where I'm looking was my counter with eight guys.
00:23:25.099 --> 00:23:27.740
And the owner loved to look busy.
00:23:28.859 --> 00:23:30.539
So here's a Friday afternoon.
00:23:30.619 --> 00:23:31.660
It's about three o'clock.
00:23:31.740 --> 00:23:34.619
This is an absolute true story, as God is my witness.
00:23:34.779 --> 00:23:36.700
A guy walks in the front door.
00:23:37.180 --> 00:23:38.859
He looks over to the counter.
00:23:39.019 --> 00:23:40.220
It's packed.
00:23:40.619 --> 00:23:44.779
He turns to his left and goes and sits down and picks up the phone.
00:23:45.740 --> 00:23:46.779
He piles the phone.
00:23:46.940 --> 00:23:49.819
I can hear the receptionist answer the friggin' phone.
00:23:50.460 --> 00:23:53.180
She transfers it to the telephone counter area.
00:23:53.339 --> 00:23:54.779
The guys are all busy.
00:23:55.099 --> 00:24:00.299
I saw one guy look at his client, he's in front of, and say, Excuse me, I have to take that call.
00:24:00.539 --> 00:24:04.379
He leaves the customer, answers the phone, takes down an order.
00:24:04.539 --> 00:24:06.460
The last question, and I'm listening to all of this.
00:24:06.700 --> 00:24:08.779
Last question is, where do you want me to ship it to?
00:24:08.940 --> 00:24:10.460
The guy stands up and waves.
00:24:10.619 --> 00:24:11.819
He said, I'll pick it up.
00:24:11.900 --> 00:24:12.859
I'm over here.
00:24:15.339 --> 00:24:16.940
We trained our customers.
00:24:17.099 --> 00:24:19.500
That was 1970 or 69.
00:24:19.660 --> 00:24:22.299
We trained our customers, you have better service if you use the phone.
00:24:22.379 --> 00:24:24.779
I could kill to get the guy to come into the store now.
00:24:25.019 --> 00:24:25.660
Yeah.
00:24:25.980 --> 00:24:27.180
In-store merchandising.
00:24:27.259 --> 00:24:28.379
What the hell happened?
00:24:28.619 --> 00:24:30.619
Yep, you're absolutely right.
00:24:31.259 --> 00:24:33.420
It's definitely a different world.
00:24:33.900 --> 00:24:37.980
Now it's you get on your computer and and they ship it to your door, right?
00:24:38.379 --> 00:24:41.099
Uh there's there's no relationships.
00:24:41.259 --> 00:24:48.619
I and I think that's a that's uh a killer, is the relationships.
00:24:48.940 --> 00:24:54.619
But you know, just like you just mentioned, the kids don't really know how to have relationships anymore.
00:24:54.859 --> 00:25:06.940
Uh, you know, I heard a gentleman say one time, and and he was the vice president of the parts operations for an OEM, and and he said parts is not a relationship business.
00:25:07.180 --> 00:25:10.299
It you know, they're gonna go wherever the cheapest price is.
00:25:10.379 --> 00:25:13.500
And and that was never never my experience.
00:25:13.579 --> 00:25:16.379
It's it's a very relationship business.
00:25:16.539 --> 00:25:19.819
Uh, and to me, to this day, it still is.
00:25:19.980 --> 00:25:24.700
Um that gentleman's thinking is where we went astray.
00:25:24.940 --> 00:25:25.259
Yeah.
00:25:25.579 --> 00:25:31.900
What we've done since I'm gonna say since the 80s, is we've put profits ahead of people.
00:25:32.220 --> 00:25:33.019
Yes, sir.
00:25:33.579 --> 00:25:36.779
Volume has not gone down, but the headcount has.
00:25:37.099 --> 00:25:37.819
Yes, sir.
00:25:38.139 --> 00:25:45.819
And in 1980, I wrote three books for the Association of Equipment Dealers.
00:25:46.379 --> 00:25:57.819
And one was called the Product Support Handbook, had every job description of a parts business, of a service business, of product support, parts and service sales and marketing.
00:25:59.500 --> 00:26:04.779
Standards of performance, prerequisite skills for every job.
00:26:06.700 --> 00:26:08.619
That's forty-something years ago.
00:26:09.900 --> 00:26:17.339
One of the the next book was about standards of performance, and sales per employee was one of the critical metrics.
00:26:19.259 --> 00:26:32.299
And in those days, the the percentage hasn't changed, but in seven percent of the sales of a parts business is the personnel expense.
00:26:34.139 --> 00:26:53.819
So if I have six million dollars of revenue, six hundred thousand was the sales per employee that worked, that's ten percent of the sales, and seven percent was the wages, that's forty-two grand, and in nineteen eighty, forty-two grand was reasonable.
00:26:54.619 --> 00:26:58.139
In twenty twenty-five, forty-two thousand is not reasonable.
00:26:58.700 --> 00:27:00.619
Well, but that's still about the pay.
00:27:00.940 --> 00:27:08.460
It it's it that's number one, but number two, the the sales per employee now are closer to two, two and a half, three million.
00:27:09.660 --> 00:27:13.019
And we wonder where the relationship's gone.
00:27:13.259 --> 00:27:13.819
Yep.
00:27:14.059 --> 00:27:16.700
There's we we've driven them away.
00:27:17.099 --> 00:27:17.740
Yep.
00:27:18.539 --> 00:27:24.539
It's you know, the guy that you you mentioned that we've got this internet and they're looking online at night.
00:27:24.940 --> 00:27:30.379
Who at the dealership calls them the next morning, say, hey Jim, I noticed you're looking at such and such for your car.
00:27:30.859 --> 00:27:33.259
You were looking at this part number, we had it available.
00:27:33.339 --> 00:27:34.379
You checked the price.
00:27:34.539 --> 00:27:35.819
I didn't see where you ordered it.
00:27:35.900 --> 00:27:36.619
Do you mind my asking?
00:27:36.859 --> 00:27:38.460
Did you order it last night?
00:27:38.779 --> 00:27:40.220
Start a discussion.
00:27:40.460 --> 00:27:40.859
Yep.
00:27:41.019 --> 00:27:42.379
Who the hell does that?
00:27:42.700 --> 00:27:43.579
Nobody.
00:27:44.139 --> 00:27:46.700
What in the hell's the the matter with us?
00:27:47.019 --> 00:27:48.940
Yeah, uh I'll tell you a story.
00:27:49.099 --> 00:28:07.740
I I worked at a uh a large suburban dealership, and when I first started there, you know, I'm still getting a feel of the place, and and then general manager would walk through the the drive in the morning on his way in, and first thing he'd say is, Where's the number?
00:28:07.980 --> 00:28:09.259
Where's the number?
00:28:09.420 --> 00:28:31.339
Yeah, and he and he where we at every day kept coming through there, and you know, the about the second we come there, what I noticed was that the sales department would give new customers, whether new or used car, give them first three oil changes free to get them to come back, which is that's fantastic, right?
00:28:31.819 --> 00:28:51.339
Well, I started noticing that they had they had loop techs, young kids, and you know, they would do the oil change, and and then they would wash the cars, and and it was taking generally literally two to three hours to get these oil changes done.
00:28:51.579 --> 00:29:02.299
So you got new customers sitting in your waiting room for two to three hours for an oil change, and all you're doing is is pissing them off, basically.
00:29:02.619 --> 00:29:04.139
Excuse my language.
00:29:04.460 --> 00:29:07.180
Uh so that I finally told them that.
00:29:07.259 --> 00:29:11.740
It's like, you know, that you got a bigger problem is then where's the number?
00:29:12.379 --> 00:29:21.259
You need to take care of the customer, and the number takes care of itself, and that's what I've always done is take care of the customer, you know, golden rule, right?
00:29:21.900 --> 00:29:23.660
Everybody forgot about that, you know.
00:29:24.220 --> 00:29:26.059
Treat others like you want to be treated.
00:29:26.220 --> 00:29:29.740
You know, would I want to go sit for two hours in a dealership?
00:29:30.539 --> 00:29:34.619
Everywhere I go, I'm a consumer, yep, right?
00:29:34.859 --> 00:29:44.859
And I have an expectation of how I want to be treated, whether it be the hardware store or or big box store or or or grocery store or or restaurant.
00:29:45.019 --> 00:29:47.579
I have expectations of how I want to be treated.
00:29:47.740 --> 00:29:52.940
So why wouldn't I treat my customers the same way?
00:29:53.660 --> 00:29:55.819
And and that's all I ever applied.
00:29:57.099 --> 00:30:01.980
Then you know everybody becomes numbers, and the guy that's asking where we at that's all the history.
00:30:02.059 --> 00:30:03.900
You can't do anything about that, right?
00:30:04.379 --> 00:30:07.099
What always I was after is what's our forward look?
00:30:07.660 --> 00:30:09.980
Have I got some work to keep everybody busy?
00:30:11.099 --> 00:30:18.940
And then okay, what backlog, because I want to have 100% utilization, what backlog do I need to have?
00:30:19.180 --> 00:30:22.539
And how far can I go before I piss off the customer?
00:30:22.859 --> 00:30:23.500
Right.
00:30:24.220 --> 00:30:27.259
So in in my world, I got field service.
00:30:27.500 --> 00:30:32.539
If somebody wants a technician to do a repair in the field, I might have a day.
00:30:32.619 --> 00:30:34.460
I gotta be out there the next day.
00:30:35.420 --> 00:30:39.980
If it comes into the shop, average length of a work order, now it gets fancy.
00:30:40.059 --> 00:30:41.259
How you know how many hours?
00:30:42.220 --> 00:30:49.180
So if you have a 20-hour work order as your average, I can have a technician do two a week.
00:30:49.740 --> 00:30:50.139
Right.
00:30:50.379 --> 00:30:53.900
I got 10 technicians, my capacity is 20.
00:30:54.139 --> 00:30:58.859
And I'm gonna say I got a backlog then of half a week, and the customer, that's okay.
00:30:59.420 --> 00:31:04.619
But if all of a sudden the backlog goes to two weeks, and instead of 20, I got 40.
00:31:05.019 --> 00:31:11.339
My probability of losing the customer goes from zero to almost 100%.
00:31:11.900 --> 00:31:12.779
Yes, sir.
00:31:13.500 --> 00:31:30.379
And I I don't know an automotive that I don't know that market share like you do, but in the construction trades, labor market share is somewhere between 10 and 20 percent, high performance 20 percent, lower, less than 10, but in that range, 10 to 20 percent.
00:31:30.940 --> 00:31:37.259
That means 80 to 90 percent of the labor on my car, my machine, is done by somebody else.
00:31:38.059 --> 00:31:41.420
And they don't have the training that my guys do, right?
00:31:41.579 --> 00:31:44.299
They don't offer the same warranty that my guys do.
00:31:44.460 --> 00:31:48.700
Right, I don't know what parts they you use, and I know what my guys do.
00:31:49.019 --> 00:31:52.220
Like all of this stuff, and we we just let it happen.
00:31:52.460 --> 00:31:53.579
Yep, yep, yep.
00:31:53.980 --> 00:31:58.619
If if I say to you, Jim, that in 10 years, let me get specific.
00:31:58.779 --> 00:32:10.379
Let's say 2040, so roughly 15 years from now, the the automotive dealer will not exist.
00:32:11.180 --> 00:32:13.579
It'll be direct sale from the manufacturer.
00:32:14.619 --> 00:32:15.579
You agree with that?
00:32:15.900 --> 00:32:16.619
Yes, sir.
00:32:18.299 --> 00:32:21.660
The contracts for the electric vehicles from Ford are already showing that.
00:32:21.740 --> 00:32:25.420
They're gonna the dealer will not have inventory, they ship directly from the factories.
00:32:25.660 --> 00:32:26.059
Yep.
00:32:26.460 --> 00:32:34.700
They'll give a trade-in value, true card, price, they'll give you a guaranteed value, they'll pick up the vehicle, take it away, give you a test drive for a month, all of this stuff.
00:32:35.259 --> 00:32:37.819
So, what does the dealer do in the future?
00:32:39.500 --> 00:32:41.660
Where do all those technicians go?
00:32:41.980 --> 00:32:42.619
Yep.
00:32:43.500 --> 00:32:46.779
They're they're gonna be independents, they're gonna be field service.
00:32:47.099 --> 00:32:49.579
Uh, that's that's the way it's gonna go.
00:32:49.740 --> 00:32:56.460
Uh, and and I think that has to do with the relationships that you know, we're leaving those relationships behind.
00:32:56.539 --> 00:33:01.500
And the irony of it is the sales department understands the relationships, right?
00:33:01.660 --> 00:33:02.940
That's what they do, right?
00:33:03.099 --> 00:33:06.700
Don't they they they're trained to build the relationship?
00:33:06.859 --> 00:33:18.379
I mean, you go into sales training, any sales training, well, they're gonna tell you about the consultative approach, do a needs assessment, learn the customer, learn their family, their commute, their budget, their plans.
00:33:18.539 --> 00:33:21.259
They send birthday cards, they ask for referrals.
00:33:21.420 --> 00:33:22.859
It's all about relationship.
00:33:23.019 --> 00:33:27.099
But then when they go to the back end, we forget about the whole relationship, you know.
00:33:27.420 --> 00:33:44.059
And the the thing that used to kill me in the service department industry, and and you know, you said you traveled a lot, so you probably went to a lot of different dealerships to have work done, and I'm sure this has happened to you.
00:33:44.220 --> 00:33:54.859
And and it's we killed our own industry because we had a lot of managers out there doing what I call skinning the cat.
00:33:56.619 --> 00:34:11.660
Okay, instead of being consistent with our with our labor and and and quoting and and doing being fair, like a lot of the aftermarkets are, you know, we try to take advantage, especially travelers.
00:34:11.820 --> 00:34:16.220
I mean, I I it was just sickening.
00:34:16.619 --> 00:34:26.059
It hurt me, you know, to think about how I would want my mother, my wife, my sister treated if she went in in the dealership.
00:34:26.220 --> 00:34:29.019
That's how I'm gonna treat every customer that comes to the door.
00:34:29.179 --> 00:34:31.259
Not, oh, I got this one.
00:34:31.340 --> 00:34:40.699
You know, I took over a dealership one time, and and I had a customer come in and he he was gone for a long time.
00:34:40.780 --> 00:34:51.739
And then he heard there was a new manager, and he came back and he said, Look, I am come here because you know, I had a car that needed a wheel bearing on the left front, and it was X amount of dollars.
00:34:51.820 --> 00:34:57.259
And then two months later, the right one went bad, and and it was$200 more.
00:34:57.820 --> 00:35:04.219
And when I asked for an explanation, I got some cockamami story as to why it was$200 more.
00:35:04.460 --> 00:35:06.059
So I did some research.
00:35:06.219 --> 00:35:26.380
I pulled the repair orders and and and looked at them, and I could see where the previous service manager he would just jot down from the top of his head the labor, you know, whatever the technician would tell him it was, instead of you know looking at a labor time guide, like you said earlier, and and using that that as a guideline.
00:35:26.619 --> 00:35:30.619
So he was all over the place, and and he got caught on that one, right?
00:35:30.860 --> 00:35:38.860
Because he didn't realize the guy was there several months earlier and already paid X amount of dollars for the same job on the left side.
00:35:39.179 --> 00:35:41.980
So, and and that's what we see.
00:35:42.059 --> 00:35:44.380
We see too much of that skinny in the cat.
00:35:44.619 --> 00:35:45.820
You could only do it once.
00:35:46.139 --> 00:35:47.980
There's a title for a blog.
00:35:48.699 --> 00:35:49.659
Exactly.
00:35:49.980 --> 00:35:52.300
There's there's probably half a dozen already.
00:35:52.380 --> 00:36:00.539
You know, one of the things that was interesting is Henry Ford in the 1800s when he started with his production line.
00:36:00.780 --> 00:36:09.900
You know what the first thing he did was raise the pay of everybody in the dealership, yeah, so that they could afford to buy a car.
00:36:10.059 --> 00:36:10.699
Yep.
00:36:11.340 --> 00:36:12.699
Where did that thinking go?
00:36:12.860 --> 00:36:16.539
I mean, dear lord, and and there's all kinds of books written about him.
00:36:16.699 --> 00:36:23.420
Yeah, Bill Blackie, I used to say, I still say, the machine is bait.
00:36:24.219 --> 00:36:28.619
I'll give the damn machine away because you you're not making any money on it anyway.
00:36:29.019 --> 00:36:29.579
Right.
00:36:29.980 --> 00:36:33.820
The net profit on equipment sales in the construction world.
00:36:34.139 --> 00:36:39.340
Don Feites, who was chairman, is closing tour of every dealer in the world.
00:36:39.420 --> 00:36:43.259
He told them, look, you're not going to make any money on new equipment anymore.
00:36:43.900 --> 00:36:45.420
It's a net zero game.
00:36:45.980 --> 00:36:52.619
You can make money on rental, on parts, on labor, and depending how you manage it, used cars.
00:36:52.940 --> 00:36:53.500
Yep.
00:36:55.259 --> 00:36:56.699
Not very many people have it.
00:36:56.780 --> 00:37:11.019
So here's the nist in our game in in the construction world, every 20 years for the last 40 years, the number of people competing in the supply chain has gone down by 50 percent.
00:37:11.579 --> 00:37:16.059
So in 1985, we have 100 dealers out there competing.
00:37:16.300 --> 00:37:18.300
In 2005, we have 50.
00:37:18.539 --> 00:37:20.460
In 2025, we have 25.
00:37:20.619 --> 00:37:22.860
In 2045, we'll have 12 and a half.
00:37:23.099 --> 00:37:23.739
Yep.
00:37:24.300 --> 00:37:30.139
So I talked to all kinds of dealers, you do too, and the thing they look at is revenue.
00:37:30.780 --> 00:37:35.579
They say, Ron, Jim, you know, I got nothing, my sales are going up, my revenue is going up.
00:37:35.659 --> 00:37:37.420
I said, Well, if it wasn't, I'd be worried.
00:37:37.579 --> 00:37:38.860
Well, what are you talking about?
00:37:39.259 --> 00:37:41.340
Well, you got half as many competitors.
00:37:41.579 --> 00:37:42.059
Yeah.
00:37:42.300 --> 00:37:47.579
When I started in Canada in in the Caterpillar dealer in 1969, there were 10 dealers.
00:37:47.820 --> 00:37:49.259
There's two today.
00:37:49.579 --> 00:37:49.980
Yep.
00:37:50.300 --> 00:37:53.500
There's one kamatsu dealer across the country up there.
00:37:53.900 --> 00:37:54.300
Yep.
00:37:54.619 --> 00:37:55.739
Unbelievable.
00:37:56.139 --> 00:37:58.619
And car dealers, I got a okay.
00:37:58.699 --> 00:38:04.619
So now we have in the car world, you can have six or eight or ten brands.
00:38:06.460 --> 00:38:16.219
The guy in Dallas that did the loyalty thing and and the the standards for General Motors, Carl Sewell.
00:38:16.780 --> 00:38:17.179
Yep.
00:38:18.059 --> 00:38:18.940
Great guy.
00:38:19.340 --> 00:38:19.659
Yep.
00:38:20.619 --> 00:38:30.059
He had uh his he he he put a restaurant in the middle of his shop so that the customer when they wake could have have a meal.
00:38:30.300 --> 00:38:30.780
Yep.
00:38:30.940 --> 00:38:33.420
I mean, talk about paying attention to the customer.
00:38:33.659 --> 00:38:34.139
Sure.
00:38:34.380 --> 00:38:36.139
Look at look at what Saturn did.
00:38:36.380 --> 00:38:38.780
Yes, Saturn set the bar.
00:38:39.099 --> 00:38:40.460
And then they went away.
00:38:40.699 --> 00:38:43.420
And then, well, yeah, because they thought it was not a good idea.
00:38:43.659 --> 00:38:44.619
Yeah, exactly.
00:38:45.099 --> 00:38:53.099
Some part expression, but and I don't I have a lot of respect for accountants, but the trouble with accountants is they're not good at looking at the future, right?
00:38:53.820 --> 00:38:55.420
Of course, nobody is.
00:38:55.659 --> 00:38:59.739
Yeah, then and that just goes back to to fix absorption.
00:38:59.820 --> 00:39:02.619
You know, how many dealers are actually looking at that?
00:39:02.860 --> 00:39:11.019
You know, you go back to 2008 to 2010, how many dealers went out of business because they were looking at fixed absorption?
00:39:11.099 --> 00:39:12.780
You you hit the nail on the head.
00:39:12.940 --> 00:39:18.860
I mean, you you don't make a lot of money selling a car, you know, there's there's not a lot of margin on the car.
00:39:19.019 --> 00:39:31.019
It's you gotta that back end is what's gonna sustain sustain you time and time again, but dealers just don't get it, and it has to be top down, it has to be top down.
00:39:31.820 --> 00:39:39.659
Well, the other thing is I I think most of the leaders in the businesses today don't understand the business that they're leading, right?
00:39:40.699 --> 00:39:43.340
And they it's cool.
00:39:44.059 --> 00:39:49.179
The point, you know, Yale has been ranked as the best business school in the country for years.
00:39:49.340 --> 00:39:53.179
The NBA there is ranked highest, and U.S.
00:39:53.259 --> 00:39:56.539
News and World Report is the one that does the rankings.
00:39:56.940 --> 00:40:01.420
And I'm I'm talking to a guy the other day about U.S.
00:40:01.659 --> 00:40:02.300
news.
00:40:02.539 --> 00:40:09.900
He said, you know, and he was part of the guy group that put that first college ranking together 30, 40, 50 years ago.
00:40:10.219 --> 00:40:18.699
He said, Today we've got about 300 different things that we measure to determine the benefit that a school has.
00:40:19.420 --> 00:40:21.980
I said, How the hell did you figure all that crap out?
00:40:22.780 --> 00:40:30.139
It's worse than our health case, you know, where you go to the doctor, you get blood work, and you know what's your blood pressure and heartbeat and all the rest of the crap.
00:40:30.300 --> 00:40:36.460
Well, we come to find that there's about 50 things that they're now measuring on our health.
00:40:37.099 --> 00:40:39.259
You know, I was at the doctor recently.
00:40:39.340 --> 00:40:40.139
I'm 80 years old.
00:40:40.219 --> 00:40:42.219
I say to the guy, how much longer do you think I'm gonna live?
00:40:42.300 --> 00:40:43.500
I've got a great gene pool.
00:40:43.579 --> 00:40:46.059
I've got an aunt who's in 99 years old.
00:40:46.300 --> 00:40:48.619
And he says, probably 20 years.
00:40:49.019 --> 00:40:49.900
I said, Terrific.
00:40:49.980 --> 00:40:50.619
What am I gonna do?
00:40:50.699 --> 00:40:52.300
Am I gonna be in a wheelchair or what?
00:40:52.460 --> 00:40:54.139
He said, That's up to you.
00:40:55.019 --> 00:40:59.259
So my aunt is in a rest home, she's 99, she's in Canada.
00:40:59.900 --> 00:41:02.699
My sister and I struggled for years to get her to go to home.
00:41:02.780 --> 00:41:03.980
She still was driving, Jim.
00:41:04.059 --> 00:41:05.980
She's dangerous, for God's sake.
00:41:06.539 --> 00:41:13.980
But she had a problem with her bladder that the doctors wouldn't give her pain medication, nor would they schedule a surgery because of her age.
00:41:14.219 --> 00:41:14.699
Yes.
00:41:15.099 --> 00:41:17.500
She gets in the rest home within 45 days.
00:41:17.579 --> 00:41:21.980
She has the operation instead of being awake every hour and a half, she's sleeping five, six hours a night.
00:41:22.059 --> 00:41:23.340
She's in heaven.
00:41:24.300 --> 00:41:27.900
So I go, I go, and this is it's off subject, but it's the same thing.
00:41:27.980 --> 00:41:29.340
I go for my colonoscopy.
00:41:29.420 --> 00:41:32.380
The guy says to me, Hey, and he's done me many times.
00:41:32.539 --> 00:41:33.820
He said, Ron, this is great.
00:41:34.059 --> 00:41:34.539
I said, Why?
00:41:34.699 --> 00:41:35.900
He said, This is your last one.
00:41:35.980 --> 00:41:37.420
I said, What are you talking about?
00:41:37.659 --> 00:41:39.019
Well, you're 80 years old.
00:41:39.179 --> 00:41:40.139
We don't need to have another one.
00:41:40.219 --> 00:41:42.059
I said, Bullshit, consider I'm 60.
00:41:42.139 --> 00:41:43.980
I'm gonna have another one in three years.
00:41:45.659 --> 00:41:48.139
There's there's there's the world's upside down.
00:41:48.219 --> 00:41:58.539
So every car when you hit life cycle statistics, we can predict when it's time to get rid of that vehicle.
00:41:58.860 --> 00:42:02.139
Yeah, but we don't.
00:42:03.259 --> 00:42:13.820
I should know for the month of June and dealer X, every single dealer, what vehicles, what brands, yeah, to whom I'm gonna sell it.
00:42:14.059 --> 00:42:14.539
Yep.
00:42:14.780 --> 00:42:24.219
And if the transaction doesn't take place, I should give a a report every day to people whose buying habits have changed in store.
00:42:24.380 --> 00:42:26.780
Get in touch with the customer, find out what happened.
00:42:27.019 --> 00:42:29.259
Yep, we don't do any of that.
00:42:29.500 --> 00:42:32.300
No, and that data is out there, that pulp data is out there.
00:42:32.460 --> 00:42:34.059
So absolutely.
00:42:34.219 --> 00:42:44.940
I don't know if you've seen, but there's a guy by the name of Nick Maverick, who's a data analytics jerk, a nerd, and another one by the name of Steve Clegg is in toro.
00:42:45.340 --> 00:42:51.099
They both do data analytic forecasting that is unbelievably accurate.
00:42:51.420 --> 00:42:55.820
Yeah, it's it's it's it's a different world.
00:42:56.300 --> 00:42:58.219
So, how do we fix this?
00:43:00.300 --> 00:43:02.460
Yeah, that's that's the question.
00:43:02.619 --> 00:43:11.259
Uh uh I you know, I like where you're going there with the with the data, as is it's important, you know.
00:43:11.500 --> 00:43:15.420
I was always taught don't expect what you don't inspect.
00:43:16.139 --> 00:43:19.980
You know, uh, and and that goes with so many different things.
00:43:20.380 --> 00:43:26.940
If you're not looking at that data, uh if you're not, you know, monitoring what your people are doing.
00:43:29.019 --> 00:43:35.099
You can expect different results, uh, but uh I don't know.
00:43:35.340 --> 00:43:40.219
I don't know how we I a simple example is engine oil filters.
00:43:41.259 --> 00:43:45.019
That gets changed every time there's a maintenance interval.
00:43:45.259 --> 00:43:45.900
Yep.
00:43:46.460 --> 00:43:50.380
I know what my population is, you know what your automotive population is.
00:43:50.780 --> 00:43:51.259
Right.
00:43:51.500 --> 00:43:54.219
Probably within 1% accuracy.
00:43:55.900 --> 00:43:59.820
I've got GPS today on every vehicle, current vehicles.
00:43:59.900 --> 00:44:02.539
So I know how many miles or hours they're working.
00:44:02.780 --> 00:44:03.420
Right.
00:44:04.460 --> 00:44:18.780
That being true, if I'm in a car dealership territory that's got 10,000 cars out there in my brand, and I've got GPS, I know everybody who's going to have a 250, 500, 750,000, or 500, whatever the interval is.
00:44:19.259 --> 00:44:19.980
Next month.
00:44:22.699 --> 00:44:27.019
That means I know how many engine oil filters I'm gonna sell next month.
00:44:27.659 --> 00:44:29.179
What my potential is.
00:44:29.500 --> 00:44:29.900
Right.
00:44:30.219 --> 00:44:32.619
I also know what my actual is.
00:44:33.739 --> 00:44:35.900
So I know what my market share is.
00:44:37.420 --> 00:44:42.139
Anyone talk about what the market share is for engine oil filters at a car dealer?
00:44:42.460 --> 00:44:42.780
No.
00:44:43.659 --> 00:44:46.219
Who makes the damn engine oil filter?
00:44:47.259 --> 00:44:48.219
Fleet card.
00:44:48.619 --> 00:44:48.940
Yeah.
00:44:49.259 --> 00:44:51.099
Not GM, not Ford, etc.
00:44:51.340 --> 00:44:53.820
So, you know, back, I don't know, it was in the 50s.
00:44:53.900 --> 00:44:57.340
Have you heard this story where there was a dealership in California?
00:44:57.659 --> 00:45:03.099
The contract for every dealer in the world at that time was that you were allowed one location.
00:45:04.139 --> 00:45:07.340
There was a guy in California, he was a General Motors dealer.
00:45:07.579 --> 00:45:15.820
His brother-in-law did the preparation for delivery, the receipt of every vehicle from the factory directly at his location.
00:45:16.539 --> 00:45:17.820
So there were two.
00:45:18.699 --> 00:45:21.099
General Motors canceled him.
00:45:22.219 --> 00:45:27.980
He filed suit saying wrongful dismissal, anti-competitive, all the rest of the nonsense.
00:45:28.139 --> 00:45:29.099
He won.
00:45:30.380 --> 00:45:36.940
So now all of a sudden, every car manufacturer, every caterpillar, everybody had to be allowed to have two locations.
00:45:38.139 --> 00:45:40.860
What was General Motors' response?
00:45:41.259 --> 00:45:52.619
They created Genuine Parts, which was Napa dealers, which is replacement parts people that's owned by the Dan Car Companies.
00:45:53.659 --> 00:46:00.380
So for Gen, true story, for General Motors, General Electric, all of those guys own general parts.
00:46:01.259 --> 00:46:03.820
That's the parent company that trades on Wall Street.
00:46:04.059 --> 00:46:05.340
The average gross margin.
00:46:05.500 --> 00:46:07.579
All of this data is out there, 38.3%.
00:46:08.059 --> 00:46:10.860
Used to be the average gross margin at Genuine Parts.
00:46:11.340 --> 00:46:15.099
Car dealers have no clue what their gross margin is in parts.
00:46:16.940 --> 00:46:19.179
They have no clue what their market is in parts.
00:46:19.500 --> 00:46:20.219
You're right.
00:46:32.619 --> 00:46:37.900
That somebody starts trying to be assertive on behalf of the customer.
00:46:39.579 --> 00:46:41.420
And I don't see that happening.
00:46:41.739 --> 00:46:42.059
No.
00:46:43.420 --> 00:46:43.739
No.
00:46:45.500 --> 00:46:47.500
How much longer are you gonna work?
00:46:50.300 --> 00:46:51.179
I don't know.
00:46:51.340 --> 00:47:01.420
I I I enjoy working, uh, but I also see that there's a lot of things I could be doing.
00:47:01.739 --> 00:47:08.380
So, you know, as as I get older, I'm I'm already at full retirement age or past full retirement age.
00:47:08.539 --> 00:47:15.420
And and I noticed that I used to be able to go on a weekend, you know, eight hours on a Saturday.
00:47:15.659 --> 00:47:18.300
You know, you work all week, so you can't do the honeydews.
00:47:18.460 --> 00:47:22.219
So they they pile up, and on the weekends, you that's what you do.
00:47:22.619 --> 00:47:25.579
Saturday and Sundays, it was eight hours apiece, right?
00:47:25.739 --> 00:47:28.219
Well, I can't do that physically anymore.
00:47:28.460 --> 00:47:34.699
So I I could see me uh putzing around all day getting those little things done throughout the week.
00:47:34.860 --> 00:47:41.179
But uh I who's gonna who's gonna take who are you gonna pass the torch to?
00:47:41.420 --> 00:47:44.940
Yeah, that's that's I don't know.
00:47:45.179 --> 00:47:46.300
I don't know.
00:47:46.619 --> 00:47:56.139
I started looking at that 20 something years ago, and I had a couple of guys, two guys that were in their early 50s.
00:47:56.460 --> 00:48:02.380
They both turned me down because they had four kids each and they didn't want to be away from their family.
00:48:02.460 --> 00:48:03.900
They were much smarter than me.
00:48:05.739 --> 00:48:12.460
Today we've got team zooms, this kind of thing, so I don't necessarily need to be in your face all the time.
00:48:13.739 --> 00:48:21.099
But I can't avoid pressing the flesh and and being with you at some regular interval.
00:48:21.420 --> 00:48:23.179
That's important, right?
00:48:24.780 --> 00:48:28.780
But I don't know who has the background anymore.
00:48:29.659 --> 00:48:32.860
Who's done the jobs like you've done, like I've done?
00:48:33.179 --> 00:48:33.820
Yeah.
00:48:34.460 --> 00:48:39.179
And and that's why as you know, that's why we call it with scars, you know.
00:48:40.139 --> 00:48:42.380
You don't get need to get the scars because I've got them.
00:48:42.460 --> 00:48:46.940
So I can tell, you know, I I'd start every class, Jim, with three definition of three words.
00:48:47.019 --> 00:48:48.860
I don't think you've heard this from him.
00:48:49.179 --> 00:48:52.460
I'd start with, okay, what's the definition of ignorance?
00:48:53.179 --> 00:49:01.099
And it's let's say it's a small class, there's 30 people, and they're all service manager or parts manager, they've all got the same job function.
00:49:01.739 --> 00:49:05.659
They don't know each other, they're at round tables, they don't know me.
00:49:05.820 --> 00:49:06.940
And who's this idiot?
00:49:07.019 --> 00:49:08.860
He's asking, what's the definition of ignorance?
00:49:09.019 --> 00:49:10.460
So it's pretty quiet.
00:49:10.860 --> 00:49:13.739
So I tell them ignorance is not knowing what to do.
00:49:13.980 --> 00:49:15.420
Oh, okay, we get that.
00:49:15.659 --> 00:49:18.460
I said, okay, what's the definition of stupidity?
00:49:18.860 --> 00:49:25.900
Now some of them are thinking, some of them are talking, and every now and again somebody comes up with the right answer.
00:49:26.139 --> 00:49:29.179
Stupidity is knowing what to do, but not doing it.
00:49:29.980 --> 00:49:31.739
And that's pretty straightforward, also.
00:49:31.820 --> 00:49:37.739
And then the last one, just to be a pain in the butt, is Einstein or or um you know Mark Twain.
00:49:38.059 --> 00:49:41.900
Insanity is continuing to do what you've always done, expecting different results.
00:49:42.139 --> 00:49:42.860
Exactly.
00:49:43.179 --> 00:49:45.900
So, like you started this whole thing.
00:49:46.699 --> 00:49:53.900
I say to them, terrific, at the end of this class, you're not gonna be ignorant because I'm gonna tell you what to do.
00:49:54.300 --> 00:50:00.780
So I'm gonna leave you a choice of being stupid or insane, and looking around the room, I don't see a pattern room in your future.
00:50:01.099 --> 00:50:03.900
So, how many of you want to leave here being stupid?
00:50:04.219 --> 00:50:15.420
Right, and you know, I'm I'm a teacher, so I run my mouth big time, but there's efficiency and effective are really important.
00:50:15.579 --> 00:50:22.300
Everybody in leadership seems to want people to be efficient, which means doing things faster.
00:50:22.619 --> 00:50:29.900
I want people to be effective, I want them to do the right thing, yeah, and only the right thing.
00:50:30.139 --> 00:50:33.900
The trouble is not very many people understand what doing the right thing is.
00:50:34.139 --> 00:50:35.420
Yep, that's what I said.
00:50:35.500 --> 00:50:36.300
The golden rule.
00:50:36.380 --> 00:50:38.460
I mean, we we knew it well, right?
00:50:38.619 --> 00:50:44.219
I mean, if you asked the 25-year-old what the golden rule is, how many would be able to give me the answer?
00:50:44.460 --> 00:50:45.579
Yeah, it's true.
00:50:45.820 --> 00:50:46.300
It's true.
00:50:46.539 --> 00:50:47.019
It's sad.
00:50:47.900 --> 00:50:48.300
Sad.
00:50:49.019 --> 00:50:58.780
What with my daughter, what I say is you know, the first day of school, let's imagine we're all 10 years old, and maybe 10-year-old should be in grade three.
00:50:58.860 --> 00:51:03.579
I don't know what it is, but you all go to school and you get assigned a grade three.
00:51:03.659 --> 00:51:05.739
You there's six of us, sixth grade.
00:51:05.820 --> 00:51:11.659
So, you know, some people in there are very smart to get bored, some people in there are very slow.
00:51:11.820 --> 00:51:13.179
It takes a while for them to learn.
00:51:13.259 --> 00:51:16.380
What I want to do is I want everybody to go to school the first day.
00:51:16.539 --> 00:51:23.259
We're all 10 years old, there's 300 of us, and I want to have a day with tests and interviews.
00:51:23.500 --> 00:51:24.860
Yes, and you go home.
00:51:25.099 --> 00:51:31.659
Yes, and the following Monday you come to school and you're assigned a grade, and you go into grade one through grade five.
00:51:31.980 --> 00:51:37.179
If you're not the quickest light bulb in the room, you're no different than the next person.
00:51:37.420 --> 00:51:40.940
Yeah, if you are smart like hell, you're no different than the next person.
00:51:41.019 --> 00:51:43.099
You have to work your ass up to keep up.
00:51:43.340 --> 00:51:47.739
Yeah, and I I think that'd be a wonderful my daughter and I agree on it.
00:51:47.820 --> 00:51:49.420
I said, terrific, make the change.
00:51:51.019 --> 00:51:51.659
Yeah, right.
00:51:52.059 --> 00:51:59.980
She says to me, Dad, the school board has not got one member that has ever taught in a classroom.
00:52:00.380 --> 00:52:01.019
Wow.
00:52:01.340 --> 00:52:03.420
And that's another indication, isn't it?
00:52:03.900 --> 00:52:04.539
Yeah.
00:52:05.980 --> 00:52:06.619
Wow.
00:52:07.099 --> 00:52:11.179
This makes any sense to have a podcast like this for people to listen to?
00:52:11.420 --> 00:52:12.860
Yeah, absolutely.
00:52:13.019 --> 00:52:14.619
Uh it does.
00:52:14.780 --> 00:52:24.380
Uh, you know, you at that point there, when I first started managing people, you know, I didn't I've never managed people in my life before that.
00:52:24.539 --> 00:52:30.139
And I started to realize that, you know, you can't manage everybody the same way.
00:52:30.300 --> 00:52:31.659
Not everybody responds.
00:52:31.820 --> 00:52:36.219
There is no, you know, structured way to do it.
00:52:36.460 --> 00:52:39.420
You have to find what makes that person tick.
00:52:39.579 --> 00:52:43.179
And you said, you know, it's the same way with teaching a child.
00:52:43.340 --> 00:52:49.500
You know, you may have a classroom, your daughter may have a classroom of 40, 40 people in there, 40 children in there.
00:52:49.739 --> 00:52:53.579
Not, you know, not two of them learn alike.
00:52:53.739 --> 00:53:14.300
You know, some of them may be hands-on learners, some may be visual learners, you know, and the and the problem with the education system is number one that is they're jamming 40 kids in there, so the teachers don't have a chance to do their craft because you know they're they're just trying to get through the day.
00:53:14.619 --> 00:53:26.699
But you're trying to make everybody learn at the same pace and learn the same way, and and that's not gonna happen, and that's why children are getting left behind.
00:53:26.940 --> 00:53:27.420
Yeah.
00:53:27.900 --> 00:53:30.699
I had I had a teacher in high school, his name was Fairburn.
00:53:30.860 --> 00:53:33.420
I'll never and we always remember the good teachers.
00:53:33.659 --> 00:53:34.699
Yes, yes.
00:53:35.019 --> 00:53:43.500
He he came into the classroom, and we had probably half of the football team.
00:53:44.940 --> 00:53:46.780
There was a bunch of athletes in the room.
00:53:47.420 --> 00:53:55.259
And he starts out, he said, I got a master's in English, and they have me teaching mathematics.
00:53:56.219 --> 00:53:58.139
So I had to learn this stuff.
00:53:58.940 --> 00:54:00.940
So I have a message to you guys.
00:54:01.340 --> 00:54:06.460
Everybody in here is gonna pass, but you're gonna do it on my terms.
00:54:07.659 --> 00:54:09.980
So every week we're gonna be testing.
00:54:10.619 --> 00:54:16.940
And if you don't, if you're not keeping up in the testing, the following week, every night you're gonna be with me until you catch up.
00:54:17.340 --> 00:54:18.139
That's awesome.
00:54:18.619 --> 00:54:19.659
It was terrific.
00:54:19.820 --> 00:54:21.500
Guess what they did to him?
00:54:22.380 --> 00:54:26.539
Two years later, he's on the board, he's not in the classroom.
00:54:29.579 --> 00:54:41.739
And you know, I I had had had another guy who was British, well, two, a British teacher from England that did exchanges in Canada, and she taught Latin.
00:54:41.980 --> 00:54:46.940
And grade nine is when you pick up Latin in Canada, and I did not want to memorize anything.
00:54:47.019 --> 00:54:49.420
If I don't understand it, I've tell with you.
00:54:49.980 --> 00:54:52.380
Geometry and Latin I had problems with.
00:54:52.699 --> 00:54:54.059
Her name was Morgan.
00:54:54.139 --> 00:54:54.860
I'll never forget it.
00:54:55.019 --> 00:55:00.300
In the first term, I got 38% in geometry too, but we'll just talk about Latin.
00:55:00.539 --> 00:55:03.739
My grandmother got a master's in 1915.
00:55:04.300 --> 00:55:05.579
She was smart like hell.
00:55:05.659 --> 00:55:16.380
She spoke Greek and and uh Latin fluently, and my parents both worked, so I was with my grandmother all day from seven in the morning till six at night while my parents worked.
00:55:16.619 --> 00:55:18.619
And I never heard her say no, Jim.
00:55:18.780 --> 00:55:20.619
It was always a discussion.
00:55:21.340 --> 00:55:25.340
So my sister's 27 months younger than I am.
00:55:25.659 --> 00:55:31.099
So my grandmother was too old to look after two kids running all over the place, so she took me to school.
00:55:31.420 --> 00:55:36.380
I hadn't yet turned four, and somehow she convinced the principal to let me start kindergarten.
00:55:36.460 --> 00:55:39.739
So I'm one of the few people you know that had to repeat kindergarten.
00:55:40.219 --> 00:55:49.579
And Granny was really different, and learning is really different.
00:55:49.820 --> 00:55:56.539
Patrick Glencioni, the first book he wrote, The Three Signs of a Miserable Job, Anonymity.
00:55:56.699 --> 00:55:58.940
Your boss doesn't know who the hell you are.
00:55:59.659 --> 00:56:03.019
Your family, your children, your sickness, or anything.
00:56:04.460 --> 00:56:09.179
Irrelevance, they don't understand where their job fits in the overall organization.
00:56:09.500 --> 00:56:10.139
Yep.
00:56:10.619 --> 00:56:14.059
And then finally, immeasurability, a word that doesn't exist.
00:56:14.219 --> 00:56:17.900
If you're working the floor, you have good job satisfactions.
00:56:17.980 --> 00:56:19.500
You know what you did today.
00:56:19.659 --> 00:56:19.980
Yep.
00:56:20.139 --> 00:56:22.860
If you're in an office, not the same thing.
00:56:23.099 --> 00:56:23.659
Yep.
00:56:23.980 --> 00:56:27.820
So, I mean, there's so many markers, so many places.
00:56:28.619 --> 00:56:31.739
You and I both need to have somebody who's going to pick up the torch for us.
00:56:31.900 --> 00:56:33.820
My daughter's taking over the first of July.
00:56:33.980 --> 00:56:35.659
You should try and do this.
00:56:35.739 --> 00:56:38.699
I'm going to try and broaden that pool.
00:56:39.179 --> 00:56:40.300
Yeah, good.
00:56:40.780 --> 00:56:48.539
We need to we need to probably be involved with every association, NADA, etc.
00:56:49.500 --> 00:56:55.579
But you know, now with NADA, you're going to interfere with what they view the world as and the standards.
00:56:55.659 --> 00:57:00.219
And if they felt the same way as you did, they would be doing the same things you want to do.
00:57:00.460 --> 00:57:01.340
Yes, sir.
00:57:01.820 --> 00:57:05.820
So to get them to change is going to be unbelievably difficult.
00:57:06.380 --> 00:57:07.019
Yep.
00:57:07.340 --> 00:57:09.259
You think they have any interest?
00:57:09.900 --> 00:57:10.860
I don't think so.
00:57:11.019 --> 00:57:17.340
I think their their goals are in the wrong place and they've been that way for a long, long time.
00:57:17.820 --> 00:57:26.380
Um yeah, they just they strayed away from again back to the golden rule.
00:57:26.539 --> 00:57:28.699
Yeah, just taking care of that customers.
00:57:28.940 --> 00:57:34.699
We've we've let so many customers walk out the door and lost the focus.
00:57:35.579 --> 00:57:38.619
Yeah, another of our contributors, his name is David Griffith.
00:57:38.860 --> 00:57:43.340
He's still the chairman of a heister dealer, a material handling dealer.
00:57:43.739 --> 00:57:51.099
He said, Today we're spending the legacy of our grandchildren.
00:57:52.059 --> 00:57:54.059
There'll be very little left for them.
00:57:55.179 --> 00:57:57.659
And and it I'm not so sure he's he's wrong.
00:57:57.820 --> 00:58:01.340
Let me let me just shift gears for a second before we wrap this thing up.
00:58:02.460 --> 00:58:10.699
My feeling is that I can buy every part for every car from at least three different people.
00:58:11.019 --> 00:58:11.739
Yes, sir.
00:58:12.619 --> 00:58:13.340
Am I right?
00:58:13.820 --> 00:58:14.539
Yes, sir.
00:58:16.059 --> 00:58:18.219
And that's three different clicks.
00:58:18.860 --> 00:58:19.179
Pardon?
00:58:19.659 --> 00:58:20.780
Three different clicks.
00:58:21.019 --> 00:58:21.340
Yep.
00:58:21.900 --> 00:58:31.259
And that our market share in parts in the I I mentioned labor 10 to 20 percent in construction world in parts, it's 20 to 35 percent.
00:58:32.780 --> 00:58:35.820
Am I far off on automotive?
00:58:36.460 --> 00:58:36.539
No.
00:58:37.259 --> 00:58:39.340
Uh yeah, that's about right.
00:58:41.179 --> 00:58:50.860
So if we think about where I want to focus, I want to increase my labor market share because at least my technicians will buy my parts.
00:58:51.099 --> 00:58:51.739
Yeah.
00:58:52.139 --> 00:58:55.579
So let's say I got 10% labor market share.
00:58:56.539 --> 00:59:01.980
And let's say that that's maintenance and repairs and rebuilds.
00:59:02.699 --> 00:59:07.420
At the AED, the associative equipment, I'm sure NADA does the same thing.
00:59:07.739 --> 00:59:15.980
Maintenance market share in automotive has got to be less than 20% of the of the available.
00:59:16.539 --> 00:59:17.019
Sure.
00:59:17.579 --> 00:59:20.219
If that's true, they've lost 80% of the parts.
00:59:20.860 --> 00:59:36.139
They've walked away from maintenance, everything uh with the big push to into the maintenance free on everything, you know, trying to make the vehicles, you know, more appealing by getting away from the maintenance.
00:59:36.300 --> 00:59:42.139
Uh and and I think that was a a huge mistake back then when they did that.
00:59:42.300 --> 00:59:44.699
Uh, because there's no going back.
00:59:45.099 --> 00:59:50.460
Uh yeah, un unless you change the game, and they are they are they haven't considered doing that.
00:59:50.780 --> 00:59:53.980
I you know, I I I appreciate this time, Jim.
00:59:54.059 --> 00:59:57.739
I th I we've wandered all over, and I hope that the audience is.
00:59:57.900 --> 01:00:02.619
I'd like to provoke thinking with these things, and I think we've done that.
01:00:02.780 --> 01:00:08.219
Um, and I I I look forward to blogs from you and and and another podcast.
01:00:08.300 --> 01:00:10.539
And skinning the cat's a wonderful title.
01:00:10.699 --> 01:00:13.500
And you you've got a whole bunch of them like that you can do.
01:00:14.380 --> 01:00:17.820
How how how how would you like to wrap this thing up?
01:00:19.019 --> 01:00:23.820
Well, yeah, uh, I just just hope that it it reaches the right audience.
01:00:24.059 --> 01:00:37.820
And uh, you know, uh for those that are 25 and younger to take a good look at the golden rule and and try to live like live by the golden rule.
01:00:38.059 --> 01:00:42.059
Um it's it's hard in any industry.
01:00:42.380 --> 01:00:51.820
Uh I see a change and a lot of people going away from that uh in any service industry.
01:00:51.900 --> 01:01:02.139
You know, I I use the example of McDonald's being, you know, familiar and comfortable, but it's it's hard to go into McDonald's anymore and get good service.
01:01:02.300 --> 01:01:08.300
So it's it's I think we just need to get back to the basics.
01:01:08.460 --> 01:01:13.019
I mean, any good football coach will tell you when their team is struggling, what do they do?
01:01:13.179 --> 01:01:16.860
Football, basketball, whatever it is, go back to the basics, right?
01:01:17.019 --> 01:01:18.460
And and that's what we need to do.
01:01:18.619 --> 01:01:23.019
And the basics are the golden rule is treat others like you want to be treated.
01:01:23.259 --> 01:01:24.539
I agree with you 100%.
01:01:25.579 --> 01:01:27.019
Thank you for your time, sir.
01:01:27.179 --> 01:01:30.940
And everybody who's been listening, thank you for your participation.
01:01:31.099 --> 01:01:38.699
I hope, we hope that we provoked your thinking and look forward to have you at another candid conversation in the near future.
01:01:39.019 --> 01:01:39.579
Mahalo.