Continuation: Reinventing the gear

Jan. 1, 2020
Last month I told you about all of the changes that are happening at the National Institute for Automotive Service Excellence (ASE) concerning the 48 tests they administer.

Last month I told you about all of the changes that are happening at the National Institute for Automotive Service Excellence (ASE) concerning the 48 tests they administer for the automotive and truck industries. While I admit that I am very impressed with the efforts of ASE and its board of directors to push their company into the future, this is not just a puff piece. Consider this more of an example if you are thinking that the time has come to reinvent your business. You don’t have to be failing to revise your business model. Heck, look at pop singer Madonna. If that is not an example of constant and arguably successfully business model revision, I don’t know what is.

Those at ASE that make decisions took a look at the testing part of their model, revised it and redirected it. Some of you may not know that there are other residents of 101 Blue Seal Drive — ASE’s headquarters in Leesburg, Va. Some are new to the digs, but one is not. The National Automotive Technicians Education Foundation (NATEF) is a long-time arm of ASE that is responsible for certifying automotive vocational tech programs. A new resident, the Automotive Youth Education System (AYES), is now part of the ASE family. AYES provides a network for young techs to enter into a mentoring relationship with an experienced technician.

Another organization that now makes its home with ASE is the Automotive Training Managers Council (ATMC). Founded in 1984, ATMC is an organization made up of aftermarket and OE training providers who serve primarily in-service automotive professionals and educators. The North American Council of Automotive Teachers (NACAT) rounds out the ASE family and, as its name suggests, is an association for teachers.

Some of these organizations had lost a clear direction, funding and/or members in the past few years. ASE saw them as critical to the industry. As Tony Molla, ASE vice president of communications, puts it, “Our industry has to find ways to be sure that the talent pool we have has paths to follow at every point in their career. We cannot consider anyone interested in an automotive career expendable.” Molla sees this league of organizations as a means to provide “cradle to grave” support to professionals in our industry. As a young person enters the industry, he or she need mentoring from an experienced professional with some training in the mentoring process. As the experienced pro decides to leave the shop environment, there is a need to provide more options than just opening a shop and potentially risking a life savings. We need ways to keep that brain trust gainfully employed and among us.

PAGE 2

Now, as a little game, imagine the potential dynamics of the ASE family working to support this initiative. Often, it is easier for us to think about the potential and pitfalls of another organization before we look at our own.

Now think about your own business venture. What works? More importantly, what doesn’t? Sometimes it makes sense to fix that which is not effective. Sometimes a different path makes more sense. Maybe you are a general parts store who offers everything, but you are space limited. Maybe it makes sense to specialize in a particular area where your competition lacks inventory and skill. What percentage of the time are you going to close the sale if you are the only one with the item? If your customers are aware of what you provide, the closed sale ratio would be quite high, compared to competing with 5 other stores that all sell the same part. Maintaining necessary margins becomes easier when you are not giving away the item just to make a sale, hoping for an ancillary purchase. The loss leader is really just bad business unless the total sale returns you to the margin you should have made in the first place.

Reinventing yourself is a lot of work and takes a lot of thought. Using examples like ASE to get your motor running makes it easier. Take a good, hard look at your unique skills, resources and your passions before you decide to diversify, consolidate or specialize. There is room for all of these approaches, there are also pitfalls that you have to confront and avoid along the way. As I tell my techs and mysel, when something gets difficult, “If it was easy, everyone would do it.”

Last month I told you about all of the changes that are happening at the National Institute for Automotive Service Excellence (ASE) concerning the 48 tests they administer for the automotive and truck industries. While I admit that I am very impressed with the efforts of ASE and its board of directors to push their company into the future, this is not just a puff piece. Consider this more of an example if you are thinking that the time has come to reinvent your business. You don’t have to be failing to revise your business model. Heck, look at pop singer Madonna. If that is not an example of constant and arguably successfully business model revision, I don’t know what is.

Those at ASE that make decisions took a look at the testing part of their model, revised it and redirected it. Some of you may not know that there are other residents of 101 Blue Seal Drive — ASE’s headquarters in Leesburg, Va. Some are new to the digs, but one is not. The National Automotive Technicians Education Foundation (NATEF) is a long-time arm of ASE that is responsible for certifying automotive vocational tech programs. A new resident, the Automotive Youth Education System (AYES), is now part of the ASE family. AYES provides a network for young techs to enter into a mentoring relationship with an experienced technician.

Another organization that now makes its home with ASE is the Automotive Training Managers Council (ATMC). Founded in 1984, ATMC is an organization made up of aftermarket and OE training providers who serve primarily in-service automotive professionals and educators. The North American Council of Automotive Teachers (NACAT) rounds out the ASE family and, as its name suggests, is an association for teachers.

Some of these organizations had lost a clear direction, funding and/or members in the past few years. ASE saw them as critical to the industry. As Tony Molla, ASE vice president of communications, puts it, “Our industry has to find ways to be sure that the talent pool we have has paths to follow at every point in their career. We cannot consider anyone interested in an automotive career expendable.” Molla sees this league of organizations as a means to provide “cradle to grave” support to professionals in our industry. As a young person enters the industry, he or she need mentoring from an experienced professional with some training in the mentoring process. As the experienced pro decides to leave the shop environment, there is a need to provide more options than just opening a shop and potentially risking a life savings. We need ways to keep that brain trust gainfully employed and among us.

PAGE 2

Now, as a little game, imagine the potential dynamics of the ASE family working to support this initiative. Often, it is easier for us to think about the potential and pitfalls of another organization before we look at our own.

Now think about your own business venture. What works? More importantly, what doesn’t? Sometimes it makes sense to fix that which is not effective. Sometimes a different path makes more sense. Maybe you are a general parts store who offers everything, but you are space limited. Maybe it makes sense to specialize in a particular area where your competition lacks inventory and skill. What percentage of the time are you going to close the sale if you are the only one with the item? If your customers are aware of what you provide, the closed sale ratio would be quite high, compared to competing with 5 other stores that all sell the same part. Maintaining necessary margins becomes easier when you are not giving away the item just to make a sale, hoping for an ancillary purchase. The loss leader is really just bad business unless the total sale returns you to the margin you should have made in the first place.

Reinventing yourself is a lot of work and takes a lot of thought. Using examples like ASE to get your motor running makes it easier. Take a good, hard look at your unique skills, resources and your passions before you decide to diversify, consolidate or specialize. There is room for all of these approaches, there are also pitfalls that you have to confront and avoid along the way. As I tell my techs and mysel, when something gets difficult, “If it was easy, everyone would do it.”

About the Author

Donny Seyfer


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