June 2014 The Paint Spot Newsletter

Thank you all more than words can say for the kind responses regarding the passing of my mom. We all know the buzz words that come with death, such as "closure", "grieving", "time", etc, and we all have been told that talking about it is therapeutic. Well, I can honestly tell all of you that your words and sentences (I read and responded to every one of them) totally worked for me. When I wrote last month's newsletter, I was a wreck and in tears throughout that whole story. I don't know why I chose to write what I did (believe me, it was vastly condensed), I can only say that those words and the format just came with no preplanning or even a conscious thought, which leads me to believe that both my mother and God were guiding me. I'm used to getting response from what I write, but I had no idea how many people read this thing, and some in other countries! I'm not a journalist or a professional writer, and the mailing lists are set up pretty amateurish (there's several of them because of the way it started, and what it's turned into). There's literally several different lists (I'm not sure how many...lol) which needs to be cleaned up because pushing the "go" button is a real challenge sometimes ( too many lists and we miss them sometimes). At any rate, it was yall's words that got me through it, and I am grateful. Speaking of newsletter feed back: Here's a "Pithy" (sorry Mr. O'Reily, I'm only borrowing your term) comment that I think I need to share with you. It's the first one I've ever received, and to be honest, I'm pretty excited about it..... " I find your newsletter to be very interesting. I can't help but notice a few things though that I'd like to bring to your attention. 1) Your constant name dropping against Hoffman's (and others) comes across as unprofessional. If you products and prices TRUELY are better than theirs, it should show in your market share and personal attacks should not be needed. 2) Throughout all of your problems with humidity control, compressors, paint warranty etc you NEVER ONCE owned your mistakes or lack of knowledge in the issue. It was always "so and so didn't tell me..." so it's their fault. Due dilligence, you didn't do it...your fault. 3) You don't make any mention of the vehicles that have been entrusted to your care and suffered damage due to your neglect. Damage which you didn't exercise the "WHATEVER IT TAKES" moto to fix. Instead you left the customers holding the bag for your mistakes/negligence (see#2 above). I don't work in the auto body or paint business. I don't know you, nor have I ever met you and I don't think I want to. Your newsletter comes across as "oily"... just say'n." Well alrighty then........I guess a response is in order (that's what Bill O'Reily would do...right?) Response: (In Order) I'm glad you find my newsletter "interesting" (I think), and I'm glad (I think) that you'd like to bring some things to my attention (even though I wasn't aware I had an attention deficit). The "name dropping" you mention is my way of identifying the individual I'm referring to, and if I had your name I wouldn't have to refer to you as "MORON", but that was your call BOZO! Your reference to me being "unprofessional" is totally true! I admitted to that in the previous segment. My products and prices ARE "truly" better than Hoffman's and I can prove it, however, since you so graciously admitted, you don't work in this industry, how the hell would you know? The humidity control and compressor / paint warranty you refer to comes from an early newsletter whereas I stated that I was not only "burned" by Hoffman's, but they emphasized zero importance of humidity and or moisture getting mixed into the paint equation, and MATRIX DID!

Now maybe you don't see the importance of "name dropping", but I'm willing to bet the vast majority of my readers who happen to depend on that kind of information to keep their livelihood "alive"... DO!

As to the "personal attacks" comment.........you mean like the one you wrote about me? Hey "MORON" at least I put MY name on it, did you? Realize this you "dip stick", I could get sued for slander if I couldn't prove my allegations......does that tell you anything? Now, I will make some mention of the vehicles that were entrusted to me (as Canyon Color Body and Paint.....NOT The Paint Spot, you idiot!) There were 17 vehicles (all were "completes") of which 16 had to be completely stripped and redone........ON MY DIME 100%. Only one of those vehicles ( a 1965 Plymouth Barracuda) was so called "waranteed" by Hofmann's (PPG), and here's what they did.......they (Hoffmann's) gave me (Canyon Color Body & Paint) $1600.00 "store credit" to cover the loss. Furthermore, they never did identify the cause (probably because the "cause" was later found to be the equipment "they" sold me for a vastly inflated price that qualified techs from "Matrix" pointed out several months later). The owner of that vehicle was completely aware of the issue and opted to take me up on this offer: "if you can live with the blistering problem (tiny water bubbles in random places on the car) I will pay you $1600.00" (the exact amount Hoffman's allowed in store credit), and if you can't, I will completely strip the vehicle and re paint it......FREE!

Realize this you dumb ass, he got real money and I got store credit, that obviously has profit built into it for Hoffman's.......are you starting to get the "name dropping" justification yet? Why should I be surprised that you did little or no research when you launched your "pithy" quest? It should have been obvious, as you didn't even take the time (due dilligence) to use "spell check"! That's totally unforgivable since you obviously have more time on your hands than most. Not only did I "own" my mistakes, but I also identified the source! I then went one step further you "ding bat"......I started a company for the sole purpose of making damn sure that no one else gets treated as I did, and stocked it with products that work along with going way out of my way to make sure nobody can ever accuse me "Rick Ciotti" of "ripping them off"!

Admittedly, you know little or nothing about this business, so how does it feel to know this......you just let your "alligator mouth" over run your "hummingbird ass"! FYI: "We'll Do Your Body Right" is the motto for "SIIX" and was also the motto for "Canyon Color Body & Paint", before I changed the name 12 years ago. Neither one of those companies have anything to do with "The Paint Spot" other than they both were companies that I originally started, and they are supplied by us. Furthermore, Slix gives a "Lifetime" warranty on all paint work INCLUDING......custom, restoration, and collision. Even when "unwarranteed" materials were used. That was my idea, and several jobs over the years have been completely repainted using top quality Matrix materials absolutely free to the customer (references upon request). Does that sound like someone who "doesn't own his mistakes", or is "not accountable"? One more thing while I'm on a roll: If you're not a damn Democrat, you're missing a hell of an opportunity! Discovery Meeting: Ken Papich (sales manager for Matrix) put together a meeting in which us "jobbers" were asked to attend. The purpose of the meeting was to discuss the position of our industry and where it's likely to go in the near future. Ken is extremely diligent in observing shifts and trends in the collision industry and acquiring the "stats" and "percentages" to support it. This information is invaluable and Ken is to be commended for such a thorough presentation. Without giving away any of the details of his meeting, for reasons of keeping Matrix's business Matrix (The competition can get its own, on its own, and I'm aware that the "competition" reads this!) I will give my take on the impending shifts and concerns. I have also requested a "hard copy" of Ken's presentation which I intend to not only use, but share with interested Paint Spot customers on a one on one basis. My observations: First of all I'd like to paint the picture of a clock in everyone's mind. 12 will indicate "Normal" (where we jobbers are most comfortable) and 6 is when things are so competitive and chaotic almost nothing makes sense (from 12 to 6 is a negative trend, but from 6 to 12 it's getting positive). With that said, we are about 5 ! Now there's lots of things that factor into this trend, such as acquisitions, regulations, mergers, products, etc. and they are all fueled by virtually one thing.....MONEY!

In an effort to gain "market share" all the players continually play cat and mouse and that's nothing new. What is new (or at least on a grander scale) is the strategy of "if you can't beat em, buy em"! When one company starts this game the others soon jump in, and rightfully so. They know that their odds are at least likely to rival the competition (they shoot for exponential, but actually settle for equal, at best) and with any luck they will exceed the others. The good news is, according to the clock (and my take on Ken's presentation) we are just shy of the worst this confusion is going to get. So how do we endure, or better yet, "prosper"? Well, number one, realize that everything in life is "cyclical". Good leads to bad (O'Bama is proof of that), and bad will eventually lead back to good. All you really need to do is what someone else won't, or can't. You may remember this saying; "the bigger they are, the harder they fall". Look back (verify) through history and tell me I'm wrong.........you can't! There are three essential ingredients to countering (or staying completely out of) this oncoming scenario: "Education", "Versatility", and "Honesty". How "apropos", there are also three things that are essential to each one of us jobbers being successful; "Price", "Service", and "Quality" (words we live by at The Paint Spot)! Let's define the first three; Education: Are you educated on industry standards in the collision industry? Are you aware of the "paint and materials" allowance (hourly rate) for collision in your selling area? Are you aware that the paint & materials rate covers "all" materials and not just paint? Are you making sure that your sales are allowing your customers to be profitable on "paint & materials? Do you know the definition or rates for "Fleet", "custom", "restoration", or "industrial"? Are you (the jobber) completely educated on the paint and materials you are selling to your customers? Do you know the limitations of your material and paint lines? Are your customers completely educated on their use? Which ones to use? When to use them? Why to use them? When not to use them and why? Versatility: Is your paint materials versatile? Do you have the ability to cover the different markets? If yes, are your products competitive in those markets? Honesty: Simply put, are you honest with your customers? Do you sell based on "what you can get them to buy"? Or, do you actually tell them when they're actually spending "too much" and why? Do you question the customer in an effort to understand what they are expecting from a particular material? Do you go out of your way to make sure you NEVER sell a customer something they don't need? Let's define the second three; Price: (actually has to do with versatility) No one is suggesting you be "the low cost provider" of paint and materials all the time. If you think you need to, you are on a count down to disaster. However, does your material and paint lines offer a low cost option? Can you "play" in that arena if need be? Quality: (actually has to do with education and versatility) Is the quality of your products great ("good", ain't good enough)? Do you know for sure, or are you relying on hear say? Do you have varying levels to compete with varying needs? Service: (has to do with education, versatility, and honesty) Do you know how to use the materials you're selling to others? Can you assist a customer with a problem if need be? Will you? Do your suppliers offer (readily available) good qualified technical support? Does your supplier offer certified training programs for you or the end user? Is support available when your customer needs it?

This doesn't have to come off as either scary or monumental to any of the jobbers reading. All these things should be considered "standard operating procedures" to anyone wanting to be successful. These are the things that any customer would want or expect from their supplier, and coincidentally, the very things the "big boys" cannot and will not do! They are driven and enticed by money, we can offset that with common sense. We, the independent jobber have the edge, if we choose this method of practicing business. Be especially cautious with trade journals, magazines, "newsletters", and trade shows! They all have an agenda which may or may not have your best interests in mind. The stories are all scripted for the purpose of sales in "their" favor. The numbers are all gathered from "their" sources and skewed to support "their" agenda. Use them as guidelines at best and then, "verify" and definitely, use "common sense"! If you allow yourself to get "lead" by commercial information, you will spend all your time and all your money chasing what "they" want you to chase, and the bottom line will be "profit in their pocket".........not yours!

I have personal knowledge of just exactly this scenario from a corporate level, in which I was asked to "on the record" make a comparison between two printing presses. The whole thing was brought about when I (for my own reasons) pushed the parameters of a 10 color U.V. "web" press, by setting it up to print a high quality job from a 4 color "sheet fed" press (I know none of this makes sense to you body and paint guys, but any printers out there will get it). I did it to prove a point and make that known to the employees who were basically holding the print division hostage by saying "this press can't produce good quality work, so quit asking us to"! I personally took off my tie and proved them wrong, and then reestablished the standards of the pressroom. The C.E.O. got opportunistic with it by calling the two mfgs and putting them up against each other and told me to make a statement to them based on my results (I wonder how much he put in his pocket). The next thing I knew, I was quoted word for word in a global trade magazine saying "our Sanden out printed our Komori" (the actual quote was much more involved than that). Furthermore, when I attended the "Gutenberg Festival" (the equivalent of SEMA) there was my name and my quote blown up huge at the "Sanden LTD" booth for all the global buyers to see! The people at "Komori" were not only friends of mine, but they were pissed! The long and short of this is simple, the test was to straighten out bad morale in the company I managed. I did the test because I actually knew how to operate a printing press, and knew my pressman were lazy and full of shit. The prospect of making money off my experiment entered the equation, and a whole bunch of unsuspecting businessmen with more dollars then sense went out on a limb for millions of dollars buying a Sanden expecting Komori results! I still have the magazine ("Printing Impressions" 1999) and will furnish a copy upon request. It's not uncommon to get a customer here that's been to a competitor in the past where he's been told "you need this, and you need that, and this is how much it's all going to cost. We will ask him what he's doing and what his expectations are. It's a real good feeling when he finds out that we were honest enough to inform him he's wanting to buy things he doesn't need. Equally, it must suck for the competitor to find out his opportunistic behavior just cost him another customer. It can be very tempting to take advantage of a customer, especially when he's expecting it. Educate him! Don't let yourself become what "they" are! Be true to yourself, and be honest.....it's the best policy! "Whatever it Takes" Rick Ciotti "SEM", etcs such as "SIA", "Matrix", "Lusid Technologies", Iwata", Norton"that Slix uses, and since I have aquired the support