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The Cycle of Recycle - delivering the goods

delivering the goods
Delivery is the focus in this final article - if the panels are treated like junk, they will be crushed like junk.
In this third and final article, USA based auto recycler, David Vercauteren takes a look at delivery. Most doors, hoods, and lids don’t need tons of special care, they just need to be strapped down properly?

The panels that have been racked that we have been taking such good care of, need to have blankets and cushions, if possible, for two reasons; one, so the product isn’t damaged and doesn’t move around, and two, so that the customer sees how their eight hundred dollar doors were taken care of. If the door is treated like junk, it’ll be crushed like junk.

Perception of the customer is everything. This is a great opportunity to make a customer’s day and for the delivery driver to be proud of the team they are on. A promotional item wouldn’t hurt either.

In the Cycle of Recycling, a meeting once in awhile about customer service with truck drivers is also paramount to receiving return customers. Over 80% of people return to a business because of the way they were treated. Staggering isn’t it. Good way to get this message across is to be a good example. It’s the way you handle the get together with your employees. Why do baby sandwiches and sodas work? Your workers work hard and feel appreciated when someone goes the extra mile for them. Get them to tell stories and experiences. Let them know what to improve on and where the team is doing a great job. New strategies will appear and be shared. I guarantee it! At the end of the day we want good customers and to give good service to those good customers.

Andy Latham
With a background in Operations for the Marine Corps and Corporate Sales, David Vercauteren headed into Auto wrecking as a salesman with no experience. He says he found that his returns were way too high and couldn’t understand why. Later JC Cahill, his mentor at the time, would place David in the inventory department to learn more about the backside of the house. He noticed that salespeople, the front of the house, didn’t talk to inventory people and inventory people didn’t talk to salespeople. Why is that? With a background in international operations, sales, and business, he noticed quickly the pros and cons of the local operations for auto wrecking in the area; everything from small yards to corporate yards. David started to visit the yards to see what was working and not working. Today, David is writing a pamphlet called The Inventory Monster to help yards come up with a good foundation for inventory projections on parts and developing open discussions at sales meetings.
True this cycle of recycle ended with a happy customer, but we all know that the customer in this industry is rarely completely satisfied. If the customer somehow receives a “door” that has a parking ding that was on a white door or is fresh, the delivery driver must make a quick move to contact the salesman after inspecting the “door” him/herself. Driver must have the resources to do so. This is so critical at the point of sale because the product has gone through the cycle already. Get the salesman on the phone with the customer/owner of the door and train the salesman how to make the deal stick. It must stay gone. If the salesman sold it the first time, there must be a way to sell it a second time with a discount, a deal on the next purchase, a toaster, whatever. It must stay gone. There is nothing you can do if it’s the kind of customer that orders from three yards and picks the best ones, then sends the others back; however, that customer must be tracked where management can step in. The trick with this kind of customer is to make a trip to the shop with the idea, not to win the argument, but to successfully train the customer on how to treat you. The Cycle of Recycle is important, but not always to the customer if they don’t understand the process of getting the salvage to their shop.

If everyone is on the same page, amazing things can happen. As an inactive marine, former NCO of operations for heavy equipment, I can tell you that details, meetings, communication, leadership, and a steady staff are key to this process. At the Harvard business college they teach leaders to walk around and get to know how their employees think and how they operate on a daily basis because no matter what is going on in their lives, they are part of something important. The employee learns to know this to be true. Making the salesmen understand the back of the house and being able to ask questions will play a large part as well. If the salesman sells to win over the customer, rather than succeed with customers, it will be very expensive. If this should happen The Cycle of Recycle is used in vein. Sales are about truth to be successful in the auto wrecking industry. For a salesman to give the truth, he or she must have the best truth they can relay to the customer. To believe beyond a shadow of a doubt, that what they are selling them is what it will be. It will change the tone in their voice and create some serious cash flow. Salesmen love to tell the truth. The ones that lie are expensive to keep and become like a hamster on a wheel. Making money and blowing money.

In conclusion I thought it might be fun to just do some math because all this Cycle of Recycle might be worth reading one more time if you like the numbers. If your returns are at 35% and you’re selling 1 million a month, that is 350k in returns which hopefully will be turned and sold again, and that is one big maybe. 350k times 12 months is 4.2 million dollars. If you have an individual that has the leadership skills to make the Cycle of Recycle happen and got the return rate down to 20%, that would be 200k times 12 months, down to 2.4 million in returns. And if you really had someone who cared about the process, the people, the salvage, training, and leadership and got it down to 10%, never mind, that’s pretty impossible, or is it?

This is the final part of this series, To view the previous two articles:
Click here to read The first article.
Click here to read The second article.

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