Fixed Ops Roundtable

Larry Daugherty is the Fixed Operations Manager for the Victory Automotive Group. Victory started in Morristown, Tennessee in 1997 with a single-point Nissan store and now they are up to 47 dealerships covering Nissan, Honda, Toyota, Chrysler, Ford, Chevrolet, and Lexus. Larry's perspective comes from leading over 1200 employees from coast to coast and shares valuable lessons learned spanning a 37-year career.

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What Ted Ings and Larry Daugherty discuss in this episode:

01:09 - Larry shares a little about the history of the Victory Automotive Group, from a single point Nissan store to their expansion across the nation with 47 stores.

02:53 - There is roughly 1200 fixed operations personnel within Larry's stewardship including porters, lot attendants, and detailers with about 800 technicians. Larry jokes that a big part of the job is staying true to his faith because it requires a lot of praying to keep up with everything happening across all fixed ops departments from coast to coast.

04:18 - Larry got his start in the car business washing cars and then moving up through oil changes, and tire swaps after graduating high school was hired by a Dodge dealership in Knoxville. For nearly 22 years Larry learned the ropes of the business, fell in love with it and the rest is history.

05:44 - Ted inquires about the support that is required for the 1200 employees to excel at their job. Larry shares that even though there are several layers of management between his front-line people and him, "they just need good, honest guidance from people that will sit there and listen to them, see what the complaints are. You can't always make everyone happy but at least if they know that you're working with them and trying to get to that next level, that specifies a lot."

06:46 - It's important to address employee issues immediately as they come up because the sooner you fix them, things will be so much better than if you keep putting those issues off.

08:46 - Larry explains that the most important aspect for car dealers to focus on this year and beyond is to ensure that their employees have an environment where they can be happy. When people are happy, your customers are going to be happy.

Listen to the full episode featuring Larry Daugherty for even more insights!

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Apple: https://podcasts.apple.com/us/podcast/fixed-ops-roundtable/id1608656237

Spotify: https://open.spotify.com/show/15HHYoyvCo1PSFwYn02UXY

Thanks, Larry Daugherty!

Connect with Ted Ings and the Fixed Ops Roundtable:

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2. Ted Ings on LinkedIn
3. Center for Performance Improvement

Ed Roberts is the Chief Operations Officer at Bozart Ford Lincoln, a dealership that has been ranked as one of the top 100 places to work in recent years. With one of the highest volume QuickLanes in the country, Ed has valuable information about how dealerships can increase profit and customer satisfaction through fixed operations.

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What Ted Ing and Ed Roberts Discuss in this episode:

01:28 - Ted observes that one of the things that people quickly see in Ed is that he has the attitude to be able to take on anything that's thrown his way. The car industry is evolving quickly, and dealers with a can-do attitude have a higher probability of not just surviving through the change, but thriving.

01:55 - Ed shares that people want to be led. When we provide our employees and teams with a path that they can see, then they buy in and push forward with it. While many organizations are worried about the great resignation happening in the country, Ed is focused on leveraging it to find and retain some of the best candidates available. "So yes, there is a lot to be said about the great resignation but we are embracing it."

04:05 - Our job as leaders is to make sure that we're painting a clear picture for our team and creating a path for them. Leaders in the automotive industry should be setting the vision for them to follow so that they can go forward and make things happen.

05:25 - When we train our people well and let them carry the torch, the job becomes less about retaining them than it is finding their replacement when they move up.

07:13 - We need to eliminate the fear of training our replacements. A lot of times we protect our own job, and we hold people back from doing that. Ed explains that at his store, they want to train their replacement no matter what role they are in. Everybody's job becomes easier because everybody understands the role in front of them.

Listen to the full episode featuring Ed Roberts for even more insights!

Enjoying The Fixed Ops Roundtable Podcast? Please leave a rating and review 👇

Apple: https://podcasts.apple.com/us/podcast/fixed-ops-roundtable/id1608656237

Spotify: https://open.spotify.com/show/15HHYoyvCo1PSFwYn02UXY

Thanks, Ed Roberts!

Connect with Ted Ings and the Fixed Ops Roundtable:

1. Register for the next Fixed Ops Roundtable Event
2. Ted Ings on LinkedIn
3. Center for Performance Improvement

Mike Rich is the VP of Marketing at RevolutionParts, an easy-to-manage solution that is helping car dealers revolutionize the way they sell and source auto parts.

In this episode of the Fixed Ops Roundtable, Mike shares findings from the RevolutionParts 2021 OEM e-commerce report.

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What Ted Ings and Mike Rich discuss in this episode:

01:20 - The OEM e-commerce report is released annually by RevolutionParts to review e-commerce trends over time to understand how the parts game has really evolved.

01:55 - In 2021 the industry saw a 30% increase in OEM parts growth ending the year with about $578 million in OEM parts sales.

03:57 - Mike expects to see some level of stabilization in the market moving through 2022 and beyond. RevolutionParts only expects to see an 11% growth rate in 2022 OEM parts sales, which contrasted to any other department in the store is still really exciting.

04:55 - The average age of cars on the road is 12 years old. That's the oldest they've ever been due to manufacturing shortages. As a result, consumers are interested in holding onto their vehicle for longer periods of time. That also means that consumers are interested in purchasing accessories for their vehicles.

11:26 - Dealers should be looking for ways to digitize their parts experience for customers; to streamline and make more accessible their parts catalog.

12:36 - Amazon currently is doubling down on OEM parts

14:55 - Mike shares that they've observed a 49% increase in mobile device parts purchases in the last year. That's an 8.4% increase from the previous year.

Listen to the full episode featuring Mike Rich for even more insights!

Enjoying The Fixed Ops Roundtable Podcast? Please leave a rating and review 👇

Apple: https://podcasts.apple.com/us/podcast/fixed-ops-roundtable/id1608656237

Spotify: https://open.spotify.com/show/15HHYoyvCo1PSFwYn02UXY

Thanks, Mike Rich!

Connect with Ted Ings and the Fixed Ops Roundtable:

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2. Ted Ings on LinkedIn
3. Center for Performance Improvement

Jim Pernas is the Vice President of fixed operations at Subaru of America, and a first-time guest at the Fixed Ops Roundtable. In this episode of the podcast, Jim shares his positive outlook about the various charitable contributions that the dealer network makes throughout the world, and why doing the right thing should continue to be a guiding principle of the retail automobile industry.

In addition, Jim shares about the incredible sales growth that Subaru has experienced and how that has increased the demand for fixed operations throughout the dealer network, and how they plan to address the supply chain needs into the foreseeable future.

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What Ted Ings and Jim Pernas discuss in this episode:

01:38 - Subaru believes deeply in giving back to the community and helping support community initiatives that are designed to enrich and enhance the lives of friends, loved ones, and neighbors.

02:53 - Subaru has been working closely with retailers on fixed operations expansion. To do so effectively, the OEM began looking internally to make sure that Subaru of America has the right infrastructure to support sustainable growth. This includes the expansion of their technical training centers to handle increased capacity.

04:45 - Jim explains that the lifetime value of a customer is phenomenal and it's so much less expensive to keep that customer coming back than it is to acquire a new customer.

06:37 - Jim shares what their fixed operations benchmarks are and what they find is important for service facilities to track.

13:32 - Jim shares about Subaru's "Share the Love" campaign, and it's focus on sharing love with others.

Listen to the full episode featuring Jim Pernas for even more insights!

Enjoying The Fixed Ops Roundtable Podcast? Please leave a rating and review 👇

Apple: https://podcasts.apple.com/us/podcast/fixed-ops-roundtable/id1608656237

Spotify: https://open.spotify.com/show/15HHYoyvCo1PSFwYn02UXY

Thanks, Jim Pernas!

Connect with Ted Ings and the Fixed Ops Roundtable:

1. Register for the next Fixed Ops Roundtable Event
2. Ted Ings on LinkedIn
3. Center for Performance Improvement

➡ Register for the upcoming Fixed Ops Roundtable Event ⬅

Fernando Arellano is the CEO of Step One Automotive Group and joins the Fixed Ops Roundtable to discuss how he's been able to lead his group to tremendous success by leveraging his global experience in the retail automobile industry.

What Ted Ings and Fernando Arellano discuss in this episode:

1:27 - Fernando explains that much of what he's been able to accomplish comes from his faith in a higher power. While working hard, he believes accounts for the majority of his success, that work is deeply rooted in the fact that he knows his efforts are elevated by something bigger than him.

1:42 - Fernando has a long history in the retail automobile industry including having a grandfather who owned a Chrysler dealership in Patagonia. His time on the manufacturer side of the business working around the globe has helped shaped his unique perspective about the car business that so few operators get to have.

5:18 - It's important to set yourself and your team up for success. That means measuring effectively the key elements of the dealership that will bring the best experience for both customers and employees. Fernando sees that his responsibility reaches much further than his brick and mortar locations. Step One's responsibility is for 789 families. It's not only about the paycheck, it's who is behind that paycheck, and taking care of the families within the business is of utmost importance.

21:51 - Fernando doesn't believe that there is a secret recipe to his organization's success. It's compassion. He's always reminding his team to show compassion and love to each other, to the customers, and throughout the community.

23:10 - Ted asks Fernando what he sees coming within the next year or two within the auto industry. Fernando shares that he sees a big disruption on the horizon. Customers are especially more educated now than ever before, and eCommerce will become an even more prominent role within the dealership. 

Enjoying The Fixed Ops Roundtable Podcast? Please leave a rating and review 👇

Apple: https://podcasts.apple.com/us/podcast/fixed-ops-roundtable/id1608656237

Spotify: https://open.spotify.com/show/15HHYoyvCo1PSFwYn02UXY 

Connect with Ted Ings and the Fixed Ops Roundtable:

• Register for the next Fixed Ops Roundtable Event
• Ted Ings on LinkedIn
• Center for Performance Improvement

Don Lindsay is the Major Account Sales Manager at BG Products, a company that is committed to maintaining vehicles through high-quality automotive maintenance services. In this episode of the podcast, Don explains what he sees as a big challenge throughout the industry, and also where massive opportunities will emerge.

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What Ted Ings and Don Lindsay discuss in this episode:

1. Don shares how he got into the automotive industry and why he chose to work with BG products. In his new role with BG, he works closely with Lithia, a major automotive retailer.
2. Ted inquires about the biggest challenge Don sees throughout the industry which has remained consistent over the years.
3. People are a consistent challenge within the retail automobile industry, whether its retaining talent or acquiring talent; the challenge is that there is a seeming shortage of people.
4. Nothing will compensate for training our people and developing or iterating processes within the retail dealership.
5. Dealers should focus on updating their processes to streamline the experience for customers.
6. Don believes that moving through the remainder of 2022 and into 2023 there is a huge opportunity for service departments to maintain vehicles. The industry will continue to observe high gross inflation, which may drive prices up on the fixed side of the operation, however, there is an upswing in the form of customers hanging onto their vehicles for longer periods of time.
7. Listen to the full episode to get even more insights from Ted Ings and Don Lindsay.

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Thanks, Don Lindsay

Connect with Ted Ings and the Fixed Ops Roundtable:

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2. Ted Ings on LinkedIn
3. Center for Performance Improvement

Steve Greenfield is the Founder and CEO of Automotive Ventures, a company focused on supporting automotive entrepreneurs, businesses, and investors with industry-specific resources, early-stage venture capital, strategic consulting, and extensive connections.

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What Ted Ings and Steve Greenfield discuss in this episode:

• The year-over-year growth of EV adoption is increasing, but it's still relatively low in contrast to gas-powered vehicles. While it may not be an issue for dealers in the next couple of years, they will continue to see EVs trickle in and take up more market share in the coming years.
• Many of the manufacturers have announced that they are going to go fully EV by 2030 - 2035, so dealers can expect to see a transition of the products they carry and will need to anticipate the needs of servicing those vehicles on-site.
• Electric Vehicles currently have fewer moving parts in comparison to the internal combustion engine which has over 2000 moving parts. While EVs only have about 20 moving parts, they are heavier and have much more torque which we can anticipate will drive more business on the wheel and tire side of the business.
• While tires aren't a high margin play for dealers, there are many options to explore to turn that into a recurring revenue stream for the store.
• We're hearing from General Motors that they expect after the dealers sell the vehicle, there's going to be all these subscription services. That means that the OEMs are already thinking about how to make less frequent visits for maintenance and turning that loss in potential margin into a more sustainable, predictable revenue stream. Car Dealers can do the same.
• GM is forecasting that by 2030 they will have an additional $25 Billion per year in additional high-margin revenue just from services that consumers subscribe to month-to-month.

Enjoying The Fixed Ops Roundtable Podcast? Please leave a rating and review wherever you get your podcasts and don't forget to click the subscribe button!

Thanks, Steve Greenfield

Connect with Ted Ings and the Fixed Ops Roundtable:

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• Ted Ings on LinkedIn
• Center for Performance Improvement

Brian Benstock is a Partner, General Manager, and Vice President at Paragon Honda and Paragon Acura in Queens, New York. His leadership has led them to be the number one certified Honda and Acura dealer globally.

What Ted Ings and Brian Benstock discuss in this episode:

• Brian has been able to remain ahead of the curve by providing concierge-level service, pickup, and delivery.
• Rather than complaining about evolving markets and consumer behavior, Brian chose to be inspired by the likes of Amazon and Google and look deeply within his dealership's operations and ask, "What would they do?"
• Change doesn't happen overnight. Brian recounts gathering his team together in 2016 to identify and provide solutions to the current challenges they faced in the market. "We went through a number of iterations and thoughts."
• By examining Amazon and Google, Brian shares a funny-but-true reality. The difference between the two giants is that Google brings a customer to the product through search, and Amazon brings a product to the customer.
• Brian chose to be inspired by this simple philosophy and began to examine whether or not there was a way to bring his services closer to a customer — to make the process more convenient for them, in a way that matched their lifestyle. This led to the dealership strategically placing drop-off service points throughout the city where service advisors would pick up cars and bring them back to the shop for service. Doing so made car repairs and maintenance more accessible to the general public because they can pick a location that was nearest them. This led Brian's team from 600 car pickups per month to over 1900.
• Brian suggests that dealers keep an eye on the horizon and anticipate what services trends are coming with electric vehicles. "You want to make sure you are involved heavily in those areas."
• Listen to the full episode for even more insights from Brian Benstock.

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Thanks, Brian Benstock!

Connect with Ted Ings and the Fixed Ops Roundtable:

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2. Ted Ings on LinkedIn
3. Center for Performance Improvement

Greg Penske is the Chairman and CEO of the Penske Motor Group and joins the FIxed Ops Roundtable to share how his dealer group operates at peak performance. In this episode Greg shares the details of his thorough dealership hiring and onboarding process.

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• Greg shares that human capital and really taking the time to hire someone that's a great cultural fit goes a long way to increasing longevity in the business.
• Each potential new hire goes through 5 rounds of vetting before they are offered a position with a Penske dealership.
• It's the leadership team's job to think of themselves as "guest-relations" managers for their business.
• When you treat your people with respect and ensure they have the right tools to perform, great things happen.
• Longo Toyota sits on 55 acres in Los Angeles and speaks 48 different languages.
• Greg shares that they are always looking at opportunities to acquire more stores, but that didn't come until they had an internal process to grow and nurture the company's internal guests (i.e., employees).
• The average tenure of Greg's team members is extraordinarily high.
• Greg has a saying, "hard to get in and hard to get out," in reference to the hiring process. He explains that having a robust onboarding experience which included setting clear expectations and how they operate contributes to low turnover.
• When team members first start, they go through Penske College which really sets a tone and standard for new team members.
• Leadership is constantly following up with team members at regularly scheduled intervals to ensure team members are enjoying their jobs or if pivots are required.
• Listen to the full episode for even more insights from Greg Penske

Enjoying The Fixed Ops Roundtable Podcast? Please leave a rating and review wherever you get your podcasts and don't forget to click the subscribe button!

Thanks, Greg Penske!

1. Register for the next Fixed Ops Roundtable Event
2. Ted Ings on LinkedIn
3. Center for Performance Improvement

Bob Tasca is the Vice President of the Tasca Automotive Group and CEO of Tasca Racing. He is one of the most recognized and sought-after names within the retail automotive industry. His dealer group operates in 5 states.

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What Ted Ings and Bob Tasca discuss in this episode:

• Bob shares about the mental state required to race cars.
• Racing is the ultimate accountability machine. Whatever mistake is made, the car is going to find it in three seconds or less. The performance review is watched by 2 million people.
• Bob looks at what they do on the racetrack and brings it back to the dealership.
• What is the true definition of success? In racing, it's simple: the scoreboard has no friends.
• Bringing those philosophies back to the dealership, it becomes easy to understand what accountability mechanisms need to be in place in order to operate successfully.
• Bob clearly defines winning or losing, who are the top performers and bottom performers. He has created a very competitive environment in which personnel can compete to win each month.
• Ted asks about what Bob is processing in his mind as the race occurs. Bob shares that he's not thinking about anything other than winning. That is the mental state required to be successful. That is a mindset that is burned into you in racing. We're not there to get a sunburn, we're there to get a win. That is the same mentality that is leveraged back at the dealership.
• Bob's family has a saying, "Win on Sunday, Sell on Monday!"
• People want to relate with winners and brands that are successful.
• This mental state led Bob's team to become ranked 3rd in the world.
• "We measure our margin of victory in racing within thousandths of a second.
• Bob shares his views about electrification and how it will affect the retail automobile industry.
• Bob explains why he will never drive a fuel-powered engine as his daily driver ever again.
• The smart people out there are going to have to reinvent many aspects of the business to make way for electrification. The good news is that it's not going to happen overnight. It will be an evolution, but it's important to pay attention to it and do something about it!
• Listen to the full episode for even more insights from Bob Tasca.

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Thanks, Bob Tasca

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Connect with Ted Ings and the Fixed Ops Roundtable:

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