Back To AutoSalvageConsultant.com
For immediate release-September 2003
Auto Recycling eNewsletter
Written and published By Ron Sturgeon, RDS Investments, email to email Ron Sturgeon
To register for future free issues, visit.http://www.autosalvageconsultant.com
ARA Executive Vice President Resigns-On August 12, 2003, William (Bill) Steinkuller resigned his position as Executive Vice President of ARA. Bill is continuing to work with ARA executives to facilitate a smooth transition. ARA should benefit from new blood, and another association will certainly benefit from Bill’s wealth of experience. Two associations will get new directors(ARA, and where ever Bill lands) that want change, and have something to prove. Members will be the beneficiaries. Recyclers desperately need ARA, so please support ARA.
Aftermarket parts usage increasing- According to Mitchell’s Industry Trends Report, aftermarket parts usage, as a percentage of total parts dollars per estimate has steadily increased from 7.2% in early 2001, to almost 10% in early 2003. Are aftermarket parts on the rebound? Many recyclers have handled aftermarket, then pulled back. It may be time to consider adding some of this merchandise to your offerings. Mitchell also reported that LKQ parts usage remains steady.
State Courts Reject
Class-Action Suits- Ohio, Washington, and Florida recently rejected
class-action lawsuits brought against insurers for authorizing the use of
non-OEM crash parts in repairs. The courts didn’t dismiss outright the claims,
or even rule on the merits of the aftermarket parts issue, but stated that the
suits did not meet requirements for class-action status. This wont preclude
individuals from bringing such cases, but as a practical matter, this action
could limit how many of these type claims are pursued, as it could be cost
prohibitive to pursue individual cases.
How’s
Business?
"There is less to fear from outside competition than from inside
inefficiency, discourtesy and bad service."
- Anonymous
It’s a bit unusual to start this section with a quote, but
this one struck me as a good reminder that most of the problems I see in my
consulting assignments stem from internal problems, and very seldom if ever
from competitive issues. Folks spend lots of time trying to figure out what the
competition is doing, and overlooking continued weak profits at their own
business. Remember, if you aren’t selling at least $15,000 per employee per
month, you likely aren’t profitable, and your cash flows are struggling. You
know this when you are struggling to buy enough cars just to keep the
dismantlers working. Visit www.autosalvageconsultant.com,
and read some of my past articles on this subject.
Ron Sturgeon is past owner of AAA Small Car World. In 1999, he sold his six Texas locations, with 140 employees, to Greenleaf. In 2001, he founded North Texas Insurance Auction, which he sold to Copart in 2002. In 2002, his book “Salvaging Millions” was published to help small business owners achieve significant success, and was recently reprinted. In June 2003, he joined the new ownership and management team of GreenLeaf. He also manages his real estate holdings and investments. You can learn more about him at WWW.autosalvageconsultant.com He can be reached at 5940 Eden, Haltom City, TX 76117, (best) email Ron Sturgeon or 817-834-3625 ext 6.