September 2014 The Paint Spot Newsletter

The Paint Spot Newsletter (September 2014) I got some funny responses from last months newsletter, but by far the best was about SATA spray guns. It seems there are a few of you who disagree with me on the quality. Well, just look at all the ads! Not only are SATA guns for sale everywhere you turn, but you can order them painted with every theme from Camouflage to Sexual preference! Maybe some of you think a cartoon covered paint gun is the way to produce professional results, but the rest of us do quite well with a "Plain Jane" Iwata or Devilbiss.......and for a lot less money! Speaking of "for sale everywhere".......... We have decided to "scrap" the Transtar line at The Paint Spot. This decision has been looming for quite some time, and was due to changing times as well as corporate marketing decisions on Transtar's part. Let me explain what I mean.... In an effort to "generate more revenue", "increase market share", "put more product out there", "build territory", "increase numbers", and the list could go on forever, but it all gets summed up with one word... "GREED"! They (Transtar) have decided to flood the market with distributors. They certainly aren't the first to do this, and I'm sure they won't be the last. We have had a good relationship with Transtar for several years at The Paint Spot. They offered good products at good prices, and always seemed to be strong in areas that some of our standard lines were weak in. We filled those gaps with their products, while at the same time, never competed against our standard lines. Example: If "Lusid" (our fleet line), "CPS" (our industrial line) or "Matrix" (our automotive & custom line) had a viable product (viable = price & quality) that Transtar also had, we would NEVER sell the Transtar version! We are loyal to our paint manufacturers, and Transtar knew that from the very beginning. How many times have I "chastised" other jobbers for selling competing lines in their stores? I do "practice what I preach"! As I said earlier, this decision was in the works for awhile. It originally had nothing to do with distribution, (although I could see it coming) but more to do with price and quality. Their sealers were getting inconsistent. "Seeding" issues were a complaint, and only one hardener to chose from. Another big problem was "recoating"! If you sprayed their sealer and for whatever reason had to sand it and broke through, it would wrinkle when recoating. The other issue was price! No body complains much about an "off brand" product as long as it works, and it's affordable............but their products were getting not so affordable! The straw that broke the camels back actually became distribution. Too many distributors, and too close together, with zero territory boundaries! It was bad enough that we had to compete with O'Reileys auto parts (who sold Transtar less than suggested) but I was certain that within another month or two, Transtar products would be available at "H.E.B" (a Texas grocery chain), "yard sales", and the "swap meet"! I think the motivation for this came as it does to lots of companies these days. Their corporate overhead went up and therefore they had to cover it by selling more product. Makes perfect sense doesn't it? They even made it look more attainable and attractive to their investors by introducing new products, like their paint line! Transtar was good at what they did, but now they've decided a paint line was just what the doctor ordered (more like what the bean counters ordered)! You should have lowered your overhead NOT chased it! Why buy a cow when milk is cheap? Especially since there are not only way too many paint lines out there already, but you chose one that has been plagued with negative response (except one that I know of, and when considering the source, that even looks bad)! You had a good thing going until some corporate bozo got dollar signs in his eyes!

Anyway, we had to get serious. We were putting in too much work for little or no profit, dealing with product problems, minimum order limitations, and chronic territory and competition issues. While Transtar was going from good to not worth distributing, both Matrix and Lusid were not only filling in gaps in their respective product lines, but also starting to market some of the "consumables". In addition we've also established a relationship with a company who is eager to do business and has everything available that Transtar would have normally supplied! This company has actually increased quality, added versatility, lowered cost, decreased minimum order quantities, and decreased freight. We will miss the Transtar reps who had nothing to do with this, it was not your fault as you were only doing what you were told to do. Mario and Jeff, I love you guys and wish you well! Paint & Materials: This term shows up at the bottom of every estimate written by every shop and insurance company in the country. It's one of three categories that should share equal importance to all repair shops in our industry. "Parts", "Labor", and "Paint & Materials" should all be profitable, but all too often, are not. To be profitable on parts you must know when and where to buy them. To be profitable on labor you must know the job and know the ability of your employees. To be profitable on paint and materials you need a crystal ball ! Not really, but think about it for a minute. How the hell do you know when you are making a profit on your paint and materials? Most people I've talked to just accept what their supplier has rattled off to them like PPG did to me, saying "you'll make at least 30% on your paint and materials with us". I called bullshit on that along time ago, and eventually found out that what they were referring to was a 30% difference in the price between mixing paint on your own bank verses buying mixed paint from the jobber! What about all the other materials besides paint? I think the easiest way to capture paint and material costs is to add up all the "paint hours" only for an entire month and divide them into the monthly dollars spent. For best results, average it out over several months. Now this doesn't apply to the dealers the big collision chains of course, they all have elaborate costing systems that capture "estimated vs. actual", and besides, if things don't seem right they supplement the insurance company for a bunch of stuff they didn't do to recover money they didn't earn. In other words...they just don't loose! Of course, they're also a big reason insurance is so expensive, which ethically, makes them "losers" anyway! Couple that with the fact that the big paint companies and supply mfg's. literally trip over themselves giving these guys deals and freebies that none of us working class guys would ever get.......or want! These so called "deals" and "freebies" are anything but! It's really just a bunch of shuck and jive buck shuffling that equates to robbing Peter to pay Paul, and since I'm not into the unethical business of "buying" business, I don't get involved!

At any rate, once you find out what you're either making or loosing on paint and materials, what do you do about it? The first thing I would do if I found out I was loosing money is find out why, and change it. If I found that I actually was making a profit, I would try to maximize it. Either way, it's time to get an education on "paint and materials" and how they differ from one certain manufacturer and supplier to another. When you do, you'll soon learn who we are and why we sell the products we do. I know all three of those categories intimately and that's one of the ways we differ from the rest. I freely offer my services to any customer who requests it. Estimating, body work, or paint work, all you have to do is ask and I'm there. However, when it comes to paint, materials, and costing, that is an ongoing effort within the walls of The Paint Spot. My criteria for the paint and materials I stock is the same as what ya'll should demand from your supplier...."Price", "Service", and "Quality"! In keeping with that standard it becomes necessary to change product lines periodically. The recent elimination of Transtar products is a good example, and there have been many since our doors opened so many years ago. I consider it "my job" to know what is out there, know how it works, and if it makes sense, make you aware of it. I learned one thing along time ago, there are lots of good companies out there with lots of good products, and some of them have a lot less overhead than others. Those are the ones that I like to deal with! I lost my love affair with name brands long ago when I found out how good Matrix and Northstar was compared to the "status quo"! The days of companies like 3M and Dupont ruling the roost are long since over and done with, and all I have to do is see those brands in a shop to tell you whether or not they are profitable on paint and materials.........NO WAY! I was having this conversation with a warehouse distributor rep just the other day, and he was saying "yeah, but you have to have that stuff (referring to 3M) because some customers demand it", and I said "not here man, this ain't burger king, you don't have it your way at the Paint Spot, you get what I give you". It always makes me laugh when this comes up because I know how arrogant I sound, but it's not arrogance at all..........it's reality! I see other jobbers carrying so many redundant brands and products. That's just plain stupid! Who the hell is paying for his bad inventory and purchase habits? Him? You? Both? Not good! Many times I've been asked to either stock a 3M product for someone or match a competitors price on a 3m product. My response is always the same....."if you want 3M products then go to Hofmann's". Everybody bitches about the price of 3M and the lack of profit, but they all sell it......except me! As a matter of fact, I'm the only jobber I know who has the guts to do what I do. But then again, I can back it up, write about it, and then sign my name to it. In the end it's the customers that are damn glad I'm the way I am because their bottom line ends up being more profitable. Challenge: Here's a challenge for all the jobbers that read this newsletter. Ask your customers to give you in percentage form what their paint and materials average is ( percent of monthly gross).

Now, here's for The Paint Spot customers that read this.....tell me what your paint and material average is, and while your at it can you tell me what it was before you came to be a Paint Spot customer? I'd also like to know in your words what you attribute it to. Is it a certain brand that we offer, the fact that we do whatever it takes, our good looks, or just because we are The Paint Spot and we think outside the box! Observation and Vacation: Recently my brother, sister in law, and nephew came out to visit from........California! Although in a past life I was from that state, I make it no secret how I feel about it now days. I was shocked (not really, but I acted like I was) to find out that my sister in law was a liberal Democrat! She's the typical "cookie cutter", "low information", "no information", "non verifying", "no facts or proof required", "vote for the black guy so nobody thinks I'm racist", "utopia dreamer", "speak no evil, see no evil, hear no evil" (but uphold a lie, rumor, or narrative all the while to do so), that most of us have heard before. Who's sole vocabulary for voting Democrat doesn't include much more than two words...Fox and Bush! Because she is family and a guest, I was a good boy and really didn't engage her much, but I did say..."you may have earned yourself a position in the upcoming newsletter ". Well, this one's for you Kris.... Interestingly enough, the following was sent to me by a subscriber in California (there is a God) which proves all is not yet lost there. This was sent to me following last months issue, and was already here prior to my sister in laws visit. It would not normally have made its way into the newsletter, but after her visit, I just couldn't resist. Bob Calnan, thank you for getting this to me, I verified the content and embellished just slightly..... LEFT and RIGHT: A Biblical Interpretation....Ever wonder why Conservatives are called the right and Liberals are called the left ? Scripture identifies Right with Good and Left with Bad or Evil. (Mathew 25:33) "Goats on the left, sheep on the right". Jesus also told Peter that if you want to catch fish do it from the right side of the boat. He did and filled the boat with fish! John 21:6 (NIV) Jesus said "throw your net on the right side of the boat and you will find some". When they did, they were unable to haul the net in because of the large number of fish. Ecclesiastes 10:2 (NIV) "the heart of the wise inclines to the right, but the heart of the fool to the left".

Now I realize that this may not mean much due to the fact that in order for Democrats to do what they have done, God must first be eliminated. My response is simply; The Bible tells us this will happen in end times and that pretty much marks ya'll as facilitators. It is said that a good Christian should offer forgiveness. I must not be that good of a Christian because I just can't seem to forgive stupidity! I know, "forgive them Lord, they know not what they do"......well if they didn't know what they were doing, then why did they vote? See what I mean? If I offer up forgiveness for that, it makes me feel stupid! Sorry Pastor Ray, But I can't help think Jesus would find this amusing! FYI: The last four letters in American...."I can". The last four letters in Republican..."I can." The last four letters in Democrats..."Rats".

Rodent removal....... November 6, 2014 This just came to me via another reader: "Don't try to explain yourself to stupid people...you're not the Jackass whisperer"! "Whatever it Takes" Rick Ciotti