With the global lock-down affecting everyone’s sales, we are all looking for ways to find sales dollars. We also all know that the Automotive Recycling Industry is counter-cyclical - when the economy is hurting, we do better. When the lock-downs are over and demand for ROE parts is increasing because of the recession, will you be ready to convert demand into sales? Many will truly excel in the coming months as demand rises and you are able to cash in on it. However, many facilities are not ‘connected’ correctly to capitalize on the opportunities that will exist. What do I mean by ‘connected’? Each customer type that we have uses a different method of finding our inventory. If you are not sharing your inventory so that it appears on the platform that potential customers are using, then you will not have the chance to sell your part. Many retail customers search online to find parts: eBay, Car-Part.com, Hollander Storefront, TradeMe, Etc. Body Shops using Estimate-Writing sof

Will I survive Coronavirus? The bigger question: Will my business survive Coronavirus? We are in an uncertain time and none of us know for sure what tomorrow holds, much less next week or next month. I am writing this article from the safety of my couch on a Sunday afternoon - too concerned to leave the security of my own home on a beautiful day that is screaming ‘come out and enjoy’. I am pondering several questions today: Will all of the employees show up tomorrow? Have any of them been diagnosed with Coronavirus? Will others have to self-isolate? Will my state force everyone to stay home for two weeks? We cannot control much in our lives. We definitely cannot control this virus nor what the government is going to do to prevent people from dying. But, we can react to issues that we encounter with wisdom. Businesses are organizations that provide services or products to other organizations or individuals. The bare basic definition: People that help other people in exchange for co

Every dollar of expenses reduces your Net Profit by the same amount. Conversely, every dollar of expenses that is reduced increases Net Profits by the same amount. Are you struggling to be profitable? Increase profit by reducing expenses. How can I reduce my expenses without sacrificing quality of service to my customers? Let’s dig into that question and see what can be done. Recurring Bills Each of us have recurring bills that we simply pay out of ‘habit’ each month. I’m talking about bills from you YMS Provider, a third-party software solution, a utility bill, and lease payment, and rental agreement, etc - you get the idea. There are certain bills that get paid each month without reviewing them - simply because of who they are from. It’s time to review these bills. Look for increased fees or increased rates that you did not agree to. Pull out the same bill from 12 months ago - is this year’s bill higher? Did you authorize them to charge you a higher rate? Spend the time, make a ca

Rumors travel faster than the speed of sound. I thought I would devote one full blog to share my full story with everyone with a hope of dispelling many rumors that are incorrect about what is going on with me. I am a third-generation recycler that grew up in a family business. I have an older sister, Tammy, and a younger brother, James that also grew up in the same family business. My parents, Ed & Pat, allowed each of us to work in the business as much as we wanted. My actual work for the family business started in 1993 when my dad bought the largest competing salvage yard to our existing yard (that was founded in 1966). The ‘new’ yard was about 6 miles from our original site and I began working there in the summer and after classes got out - I was attending the University of Mobile to get a degree in Business Management and Accounting. I worked part time for three years while in school and became the full-time manager of the site in 1996, when I graduated from college. In 2

In 2020, we plan to do $17M in Gross Sales. In 2020, we plan to dismantle 2,000 vehicles. In 2020, we plan to turn a 14.7% Net Profit. Each of these are Outcome Goals. Outcome Goals are very hard to predict. You should be focusing on Input Goals, not Outcome Goals. What is the difference? We all know that in-stock sales are directly proportional to vehicle purchases. As a matter of fact, there is a known ratio between the two. For the average recycler, the Cost of Goods for In-Stock Sales is roughly 43%. This number could range from 40% to 50%, but we will use the average of 43% for this example. This is a facility that probably focuses on a 2012-2013 model year for its average year purchased. For this example, we will also assume that this facility is 50% In-Stock Sales, 40% Brokered Sales, and about 10% non-part revenue. So, if this site sets a goal of $17M in Gross Sales for 2020, that would mean that In-Stock sales would need to be $8.5M, which is 50% of the $17M Goal. Stay