Virginia Automotive Report E Newsletter for October 2014

Expansion Plans… 4 VAA Members Tell Their Stories

Through any economic downturn, opportunities always present themselves, and this past one we have been in has proven no

different. We spoke with four VAA members who have expanded over the last couple of years about how their new locations

came about. Some built from the ground up; some took over traditional shops, and some got creative. Here is each one’s story:

The showroom at Leete’s new location was com-

pletely gutted. The sales counter consists of three

separate work stations for customer convenience

The new Ruckersville location also houses University’s

corporate office. From L-R: Adam Dowdell,

Larry Williams, Chuck Shifflett

The West Main location which is just a few minutes

from the UVA campus was completely renovated

The rear wall of the showroom displays an attrac-

tive graphic of the Leete Tire logo. From L-R: Wes

Tatum, Brent Foster, Lea Rowsey, John Stern & Josh

Kessel

University Tire & Auto– Charlottesville Area After originally opening in 1995, University began looking for expansion opportunities when Larry Williams bought out his partners in 2005. Original-

ly looking to build, and wanting to be in the Pantops area, a building became available after a Mercedes repair facility closed up. The 5 bay

store was remodeled and opened in 2009. A tire wholesale business was added in 2010, and in 2011 the old Morris Tire store, a 6 bay building on

Main street and close to UVA, was bought, remodeled and opened. In 2012, an opportunity in the fast growing Rt. 29 North area close to the

airport became available when Forest Lakes Auto decided they wanted to sell. Larry and his team took over on December 28, did a complete

remodel over the weekend, and opened January 2. Further north in Ruckersville, a building also on Rt. 29 North became available that at one

time housed a GM dealership and later a used car lot. The 12,000 square feet of space had several buildings and a large parking lot. After pur-

chasing it in 2013, Larry was able to consolidate some of his divisions under one roof. One area, which had previously been a mortgage compa-

ny, was converted to University’s corporate offices, complete with a conference training room. The shop area has 8 bays, and he was able to

move his wholesale division there as well. Not sitting still for long, University just purchased a building in Orange that previously housed a John

Deere dealership. The new store will have 10 bays and 7,000 square feet for retail and 18,000 square feet for wholesale. They plan to open their

latest acquisition and sixth location, in December.

Leete Tire & Auto– Richmond Area Jerry Tatum bought Leete Tire & Auto in Petersburg in 1976, and expanded to Richmond with a second location in 1995. Late in 2012, Bobby

Borum, who owned Tire Corporation of Richmond on Hull Street, just west of Chippenham Parkway, approached Jerry with interest in selling. The

conversation continued into early 2013, and Leete purchased the building and took over in June 2013. The location, which was a commercial

tire business, was in need of improvements, and an extensive and complete renovation began which took 9 months, and was overseen by Jer-

ry’s son Wes and daughter Lea. The showroom was completely gutted, and some days they had to put the sales counter in the parking lot, but

never closed through the process. Today they have a clean, well lit, attractive sales and customer area, including office space, a conference

room and new customer rest rooms. In the shop area, they were able to reconfigure the space and put in 6 lifts and racking for tire and parts

storage. They continue with a strong commercial business, with 3 service trucks, which expands out to a 50 mile radius. In addtion they are now

targeting retail customers as well, and have added in complete auto repair and state inspection. To enhance their retail effort, they have direct

mail, email, and radio spots the Wes and Lea do together on four Clear Channel FM stations for all three of their stores. The location, which Lea

oversees and is managed by Brent Foster, has 10 full time employees, and is open Monday-Friday 7:30-5:30.

Expansion article

continued on Page 5

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www.unifirst.com

www.carrolltire.com

www.federatedinsurance.com

www.parrishtire.com

www.morrisdist.com

www.odtdirect.com

www.valvoline.com

www.atd-us.com

PLEASE THANK AND SUPPORT OUR VAA ADVERTISERS

www.forparts.com

www.tirecenters.com

www.demandforce.com/vaa/ www.hotrodprocessing.com

www.premierler.com

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“Join the Revolution”

VAA 2015 Convention & Trade Expo

April 24-26, 2015

The Williamsburg Lodge

A Resort Hotel located in the heart of the

historic district of Colonial Williamsburg

More info at www.vaauto.org

VAA Board of Directors

President: Bobby Cutchins

Bobby’s Tire & Auto Care, Franklin

Coastal Virginia Region

President-Elect: Scott Brown

Cardinal Plaza Shell, Springfield

Northern Virginia Region

Secretary-Treasurer:Jerry Tatum

Leete Tire & Auto, Petersburg

Richmond Region

Executive Board Member: John Kline

Old Dominion Tire, Midlothian

Richmond Region

Past President: Brenda Carpenter

Carpenter Tire, Lynchburg

Lynchburg Region

Directors:

Northern Virginia Region:

Myron Boncarosky, MSS, Inc./Va. Tire, Fairfax

Chris Barnett, Tire Tread Service, Fredericksburg

Richmond Region:

Clint Farrar, American Tire Distributors, Richmond

Emmerson Miles, Miles Auto Service, Richmond

Tom McClain, Napa Auto Parts, Richmond

Coastal Virginia Region:

Mark Anderton, Shore Drive Shell, Virginia Beach

Mike Scaglione, Arrowhead Auto & Align, Virginia Beach

Lynchburg Region:

Eric Hughes, Harris Tire, Lynchburg

Southwest Virginia Region:

Matt McCoy, M & M Tire, Blacksburg

Travis Leath, Twin County Tire & Auto, Galax

Shenandoah Valley Region:

Steve Crawford, Hepner Tire, Woodstock

Terry Westhafer, Central Tire, Verona

Tom Jones, Fisher Auto Parts, Staunton

Larry Williams, University Tire & Auto, Charlottesville

Premier Lube & Equipment Repair, Mark Bonner,

Manassas Sponsored by Steve Akridge

Scott’s Ivy Exxon, Scott Ramm

Charlottesville Sponsored by Steve Akridge

Valvoline, Keith Coleson

Midlothian Sponsored by Chris Barnett

Powhatan Tire & Service, Scott Conner

Powhatan Sponsored by Mark Lewallen,

Unifirst

Top-Notch Tire & Auto Center, Todd Meredith

Sandston Sponsored by Steve Akridge

Fetty’s Service Center, Jim Thoroman

Richmond Sponsored by Emmerson Miles

Mike Duman A uto Sales, Mike Duman

Suffolk Sponsored by Bryan Patterson,

Papco Oil

Bobbie’s Tire & Auto Service, Roy Sprouse

Richmond Sponsored by Bryan Patterson,

Papco Oil

Join VAA online at www.vaauto.org click Join VAA

Welcome New VAA Members

VAA Office:

Steve Akridge, Executive Director

Email: sakridge@vaautomotive.org

Web: www.vaautomotive.org

6126 Fox Haven Place

Midlothian, VA 23112

Phone: 804-739-1400

Toll Free: 800-488-2732 Fax: 804-739-4700

It’s where “the best of the best” come to network and

discuss the issues with fellow shop owners, learn from

national speakers, talk with industry vendors, and have

a great time…at one of Virginia’s finest resorts and all in

one weekend! More info coming soon.

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President’s Corner

By Bobby Cutchins

An old friend of mine once told me he went in business

FOR himself, not to be BY himself. That has always reso-

nated with me because as business owners we operate

in a vacuum…meaning we get so absorbed in the day-

to-day operations, we easily become unaware of

changes around us and end up feeling that we are

alone on an island. Joining an association like the VAA

opens up a network of like-minded business owners, sup-

pliers and affiliates who help provide answers when

needed…a sounding board for new ideas…new oppor-

tunities for growth and profitability…guidance with prob-

lems…and lifelong friendships.

There’s strength in numbers. Suppliers and affili-

ates will work better pricing, program value and benefits

when they deal with an association versus an individual

owner. Bigger is better, and by banding together every-

one wins…suppliers get more business and owners get

improved value. Additionally, owners will many times find

out about new programs or products that they may not

have known about when they operate on their own.

Easy access to industry leaders. The annual con-

ference provides members access to hear numerous

industry leaders share their knowledge and ideas. When

you operate on your own, it’s more difficult to find out

where to hear from the leaders and many times when

you find out, the opportunity may have pased you by.

A Voice. Fighting regulation and government

bureaucracy on your own is like trying to be heard at a

major league ballpark…impossible. By banding together

in the VAA, hundreds of voices make a definitive state-

ment and are heard…resulting in a voice in regulation

and at times preventing government from imposing its

ideas on an industry they know very little or nothing

about. At times, an owner may be faced with a local

issue or problem, and the VAA will join in and help out…

like having your big brother behind you on the play-

ground when someone bigger wants to pick a fight. Big

retailers don’t need an association…in many cases, they

act like one on their own and can be tough to compete

with. The VAA helps to level the playing field by bringing

small business owners together. Strength in numbers, and

when independents band together they can be stronger

than the big guys. Steve Akridge, our Executive Director,

is there to fight on everyone's behalf everyday.

All the programs that the VAA offers…

(go to www.vaauto.org to see them all)

Social interaction…the annual conference is a

fabulous way to get away for a long weekend, relax and

recharge your batteries, get motivated, find out what’s

new in the industry and have fun. Business owners can

get so involved in the day-to-day we sometimes forget to

have fun and relax. Life is too short and we need to be

reminded what we work for everyday…our families. This is

hard to put a pencil too, but family and friends are what

life is about and the VAA helps to make this happen by

bringing everyone together. They’re there for members

when times get tough, as a friend providing inspiration

during a family crisis, as a cheerleader to keep momen-

tum going and support if or when you need someone to

help fight the fight. You’re not BY yourself with the VAA…

Until next time, Bobby

Preventing Questionable Workers’

Compensation Claims

One of the most stressful issues that manage-

ment experiences is receiving a notification letter from

an employee or an attorney that an employee is filing a

Workers’ Compensation Claim -- particularly when the

claim was not reported or made aware to the employ-

er. It becomes even more frustrating when you have

the gut feeling or suspicion that the claim is questiona-

ble. Although these types of situations are extremely

difficult to avoid due to the vicious triangle of pro-

workers’ comp attorneys and physicians and the fact

that most workers’ comp organizations do not actively

support their client -- the employer in challenging the

claims. More and more carriers are simply paying and

allowing the client - the employer to reside in this vicious

triangle - attorney - physician - workers’ comp carrier.

Employers must be more than ever proactive in prevent-

ing claims. The following are SESCO’s staff recommen-

dations on how to avoid frivolous workers’ compensa-

tion claims. While there isn’t any single way to protect

yourself against these types of claims, there are SESCO

best practices that you can implement to make it much

more difficult for someone to file a questionable claim.

1. Conduct documented exit interviews that include a

question on whether the exiting employee sustained

any work-related injuries while working for your organiza-

tion.

2. After a job offer has been made and before the em-

ployee begins work, have the individual complete a

workers’ compensation claim history that will be filed in

the employee’s medical file for potential future refer-

ence.

3. Implement a clear and concise written policy that

allows for immediate termination for filing fraudulent

workers’ compensation claims.

4. Implement a written policy that requires employees to

immediately report all work-related injuries no matter

how minor. Include this written policy in your new hire

packet as well as in your employee handbook. Include

in the policy that workers’ compensation may be de-

nied for not reporting the claim immediately.

5. Provide employees with information and/or access to

short-term disability benefits for disabling injuries that

happen away from work. So many employees will get

hurt at home or away from the job and do not have any

other coverage and thus turn it into a workers’ compen-

sation claim.

(article continued on Page 6)

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Titan’s ribbon cutting ceremony and weekend grand opening

attracted hundreds, including many county dignitaries. Hold-

ing scissors, Butch & Kim Taylor with Chesterfield County Super-

visor Steve Elswick (to Kim’s right).

Titan’s building previously housed an electric supply store. The

front was remodled into an attractive and spacious show-

room and sales counter. Two bay door openings on the side

allow for easy entrance and exit into the service area. There

is a large lot for parking.

Expansion Plans article continued from Page 1

L-R Julie Holmes, Mario Andretti and Mike Holmes at Virginia

Tire and Auto’s location in Ashburn which opened November

2013.

Their newest location, a 12 bay, 7500 square foot store, is in

Loudon County, and is scheduled to open early November

2014.

Titan Auto & Tire– Richmond Area A different type of opportunity presented itself for Titan owners Butch and Kim Taylor. They had been in business at their original location on Jeff

Davis Highway for 11 years, and had expanded that store by doubling it’s square footage in 2011. They had a real estate broker to look for po-

tential second locations when he came across a 12,000 square foot retail/warehouse building that had been vacant for 4 years and had previ-

ously housed and electrical supply business. Even though this is not the typical tire and auto service footprint, Butch and Kim had a vision for how

the building could work to suit their needs. It’s in an area of Chesterfield County that has been fast growing, slowed during the downturn, and is

now picking up nicely. Almost across the street is a massive housing development called Magnolia Green, which has seen the fastest growth of

any community in the metro area. They bought the building this past June 16, and put in long and hard hours over the next month to begin the

massive undertaking of renovating it into an automotive facility. As Butch put it, “we were here from 7 am to 10 pm seven days a week for a solid

month, doing a lot of the work ourselves”. The finished product is one the Taylor’s are very proud of. The warehouse area which is now the shop

is 8,000 square feet and has 5 lifts and an alignment rack. There is room to add 5 more lifts, and 2 large bay doors make for easy entrance and

exit. The large showroom is clean and well lit with an attractive customer lounge, and an extensive area for customers to plug in their laptops or

other devices while they wait. Their business mix is about 60% retail and 40% commercial fleet and they offer complete tire and auto service in-

cluding engine and transmission replacement and diesel repair. They also work on motorcycles and have a U Haul rental business.

Their advertising has consisted of direct mail, social media, some radio, and they have gotten involved wth the community HOA’s and Cosby

High School, which is just a few miles away. By coincidence, Cosby’s school nickname happens to be “Titans”. The Taylor’s hope to have a third

location within the next year, and plan to remain in Chesterfield County with their future growth.

Virginia Tire & Auto– Northern Virginia Area Myron Boncarosky’s first location was Main Street Shell in Fairfax, which opened in 1976. With their latest location scheduled to open early No-

vember, a 12 bay, 7500 foot store in One Loudon, Virginia Tire will have 13 locations. Their primary footprint is the Northern Virginia counties of

Fairfax, Loudon and Prince William. Myron’s daughter Julie Holmes and son-in-law Mike Holmes have been working on future locations since they

joined the business in 2007. As Mike Holmes describes their planning process, “we identify several markets in Northern Virginia to fill in our existing

footprint and are targeting markets adjacent to our existing footprint. We then begin the approval process, which often requires special zoning.

From start to finish, the entire process takes on the average 2 years to complete. Over the past several years, we’ve invested quite a bit in infra-

structure and systems to support moderate growth-our goal is to add 1-3 stores per year for the next several years”. Part of their expansion has

included developing a fresh and consistent look for the inside and outside of their stores, which began with a new logo, introduced last April.

From there, an extensive “rebranding” of all stores began, which took over 6 months to complete. Holmes said he is very pleased with the new

look, which has also been a big hit with their employees and customers. Most of their recent expansion has occurred in Loudon, which is the

most affluent county in the United States. Their South Riding location, a 14 bay, 11,500 square facility opened in September 2010. The Broadlands

store, in the Ashburn area of Loudon is on a smaller piece of land, and is 5,600 square feet with 9 service bays, and opened November 2013.

Their grand opening was in March 2014 and featured race car driver Mario Andretti. The company’s next expansion takes them to Prince William

County and the Bristow area on a piece of property they have owned since 2003. They have received special use approval, site plan approval

and their building permit, and hope to be have the store open mid 2015. Even with the complicated process, Holmes indicated that new con-

struction gets them the type of building they need, the consistent look they want, within the areas of their footprint they want to be.

Sesco article on Preventing Questionable Work-

er’s Comp Claims continued from Page 4 6. Require the employee that has sustained a work-related inju-

ry to write him or herself when, where and how they were in-

jured. This is in addition to the investigation. Have the employ-

ee sign and date the statement. Additionally, require manage-

ment to complete an Accident Investigation Report that also

states how, when and where the employee was injured. Note

any discrepancies or conflicting statements.

7. Interview, reduce to writing and have witnesses sign

and date what they witnessed. Again, note any discrep-

ancies or conflicting documentation.

8. Place fraud awareness posters on safety bulletin

boards or other bulletin boards throughout the organiza-

tion. These fraud awareness posters clearly state what

fraud is and what the consequences are for filing fraudu-

lent claims.

9. Check references for applicants you are considering to

hire. Most employers do not check references because

they do not think they will receive any information.

Please check references - references would include pre-

vious supervisors or managers that the employee worked

for. Simply ask if the employee is eligible for rehire. Verify

through an effective outside background check firm

gaps in employment, simple internet checks, state police

checks or other will not provide the necessary infor-

mation to provide this historical information.

10. When possible, bring back an employee on workers’

compensation to modified duty or light duty. This confus-

es most employers but if we can get the employee back,

particularly within the minimum timeframe for claim initia-

tion, the organization will:

Save significant money.

Avoid continued FMLA and ADA challenges.

More than likely resolve the issue. Either the em-

ployee will quit or will know that the employer is serious.

Do not allow injured worker to stay at home. They

will be earning 66% of their wages and many times will

perform work for cash and play the system.

11. Hold your workers’ compensation carrier accounta-

ble. This is one of the most expensive insurances that an

employer is required to have and employers should de-

mand immediate and effective support in case manage-

ment.

In providing support to our clients throughout the country,

one of the most common questions that we receive and

one of the most frustrating employee problems that we

have to manage is that of filing fraudulent workers’ com-

pensation claims. SESCO has developed a number of

systems and practices to include onsite audits that will

help employers avoid questionable workers’ compensa-

tion claims.

Sesco is a VAA endorsed Partner, and you may contact

them by phone at 423-764-4127 or by email at

sesco@sescomgt.com.

Navigating Employment Practices Exposures

Do you feel as if you’re navigating through a

“perfect storm” in the waters of employment-

related practices liability (ERPL)? The challenging

economy, fluctuating unemployment rates, and

recent legislation have alerted savvy business own-

ers to the importance of evaluating their employ-

ment practices exposure.

Federated not only offers one of the finest ERPL pol-

icies in the insurance industry, we are positioned to

help support our clients with their efforts to establish

and maintain a productive, non-discriminatory

workplace. To help reach this objective, we have

introduced the Federated Employment Practices

NetworkSM (FEPN).

What is FEPN?

Through FEPN, our ERPL clients will have access to

the following complimentary services:

Unlimited online or toll-free direct access to em-

ployment law attorneys.

An online employee handbook building tool de-

signed to help you document your employ-

ment practices.

Customizable HR risk management resources, in-

cluding federal- and state-specific forms and

posters.

HR Express updates, including:

− Question and Case of the Month, based on

popular topics

− HR alerts

− Webinars based on client interest and fre-

quent claim topics

Unlimited access to online sexual harassment and

discrimination prevention training for supervi-

sors, and harassment prevention training for

employees.

With help from Federated and the Federated Em-

ployment Practices Network, our ERPL policyholders

can develop a risk management program to both

prevent and protect against employment-related

claims.

For more information, contact Federated District

Managers, Chris Welch: 540-200-7883 or Joe Merritt:

804-346-4688. Federated is an endorsed VAA

Partner.

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