Mike Allen began his career in the automotive aftermarket as a district sales manager for Raybestos, calling on NAPA. After 17 years with the brake company, he joined Federated Auto Parts as vice president to work alongside some of the most respected leaders in the industry.

Shop owners are always looking for ways to be more profitable. Can you please give us an overview of the Federated Profit Seminar entitled “More Profits and More Cash” and how it helps shops succeed?
The Federated Profit Seminar is an interactive class that supports a major cornerstone of the Federated program: education. Together with shop owners, we explore the four-cycle engine of a repair shop which can directly impact their bottom line, ­including:
• Intake Stroke – Car Count
• Compression Stroke – Technician Productivity
• Power Stroke – Average ­Repair Order
• Exhaust Stroke – Satisfied, Happy, Delighted Customers

The instructional design of the class by Essential Actions Design Group allows everyone to be fully engaged quickly. It is 90 minutes of solid information and really resonates with all that attend. By using a shop’s own numbers, we show mathematically how small changes can make a big ­impact, making this seminar very rewarding for shop owners as they put these practices in place. For example, we explore what it means to profitability to get two more cars through a shop in a week or to pick up technician productivity by a few points. Or, we discuss how category management information can enable a shop’s average repair order to go up several dollars through an improved inspection process.

The course is a fast-paced class with meaningful interaction between instructor and ­attendees, and each participant leaves with a workbook and a “What If” CD to help them ­capture key variables about their business and explore ­different scenarios to ­increase their bottom line.

How has this program been ­received by your members and customers?
The post evaluations of classes have been well beyond our expectations. The processes and practices learned and implemented consistently yield higher revenues and profits for those who have attended the course. Our ability to deliver this class so affordably allows us to reach more shops than we would otherwise, as there is clearly a strong interest by our members and customers to ­increase productivity and profitability. No matter what part of the country we present the seminar, the feedback has been very ­favorable.

Why does ­Federated think these types of ­programs are so important?
As an industry, we have done a pretty good job of providing technical training through our great manufacturer partners, but one area that we felt the aftermarket came up a little short was that of providing business-building education. It is in the best interest of our membership that our service provider customers be as successful as they possibly can be, and if we can provide them with valuable information to grow their businesses, our profitability seminar endeavor is clearly worthwhile. The interaction we have with shops each time we conduct a course demonstrates to them that ­Federated is invested in their success. And, any time you can provide a ­program that helps shops, parts stores and WDs increase profits through education, it is a win-win-win situation.

What other types of program does Federated offer for its Car Care ­Center members?
Being a Federated Car Care Center has many advantages and continues to lead the way with innovative programs to help our service provider customers be leaders in their respective markets. We are very proud of our Roadside Assistance and National Warranty programs that allow our independent shops to benefit from a strong brand in Federated, enabling them to compete for market share against others who might have had a marketing advantage in the past due to their affiliation with bigger national chains. Being independent doesn’t mean standing alone and, at Federated, we believe it is our ­responsibility to provide our customers with the tools necessary to achieve their goals. The Federated Car Care program ­allows them access to a myriad of valuable programs.

Federated has a long history of ­education and training for its ­customers.  Is that something that sets you apart from the competition?
Education has always been a focus of Federated. In 1985, Federated was founded by Art Fisher and Rusty Bishop. One of the major tenants they ­believed for a successful program distribution group was that of education and training. Art was a teacher himself before entering the aftermarket and Rusty, who currently serves as chairman of the University of the ­Aftermarket Foundation, have instilled in all of us the importance of being leaders in education. We are always working to stay ahead of the curve in this area.  In fact, we are developing an exciting new course to compliment our current installer business management training. The Federated business model depends on the success of the professional installer, so we will continue to invest in the training and education required to help repair shops be as successful as our founders envisioned, giving us a competitive edge and helping differentiate Federated from other program distribution groups.