VOL. 2, ISSUE 12 – FEBRUARY 2013

WE BUILT OUR REPUTATION ON 23 YEARS OF HONESTY, TRUST AND DEPENDABILITY!

603-437-3000 • 855-647-3267 • Fax: 603-437-1313

AUTO RECYCLING TODAY! BY DON BELISLE

Don Belisle,Owner of

Recore Trading Company, L.L.C.

PRSRT STDU.S. POSTAGE

PAIDMAILRITE, INC.

continued on page 2

Newsletter22 Manchester Road • Derry, NH 03038

www.recoretrading.com

The year end sales reports from the largest auto makers are in and they are up. Overall December 2012 sales were up 7% over December 2011 and the full year sales are back to the 2008 levels. This news is both good and bad to the auto recycler; the good news is with more people buying new cars it stands to reason that more cars are being sold for scrap, more scrap cars equals more

flats, more catalytics, more aluminum wheels etc and more revenue to the recycler. The bad news is with more people buying new cars there are less people buying used parts to keep the older cars going. So considering only the new car sales numbers, the scrapping portion of the yards business should increase while the used parts end may be down. Most of the yards I speak to say that business is up and down “you will have two or three good weeks and start to think things are turning around then you get a week or two of nothing going on”. It doesn’t matter what part of the country you are in I’m hearing the same thing everywhere.

As of this writing (early January) the bump in ferrous prices everyone was expecting is coming slowly, the non ferrous markets are up and down daily and timing is everything. The precious metals end of things saw the usual slump at year end and is now back to mid December levels and trying to consolidate, the “experts” are predicting flat prices for the near mid and distant future. The only thing consistent about the expert predictions is that they are nearly always wrong. At Recore we are hedging material at the highs without being over cautious or over optimistic this way we can offer great pricing without being caught with an over aggressive hedge when the market jumps.

At Recore we have been very fortunate and have been very busy, our supplier base increases every month with material coming in from our local “core” suppliers and

suppliers from farther and farther away all the time. To all of our suppliers I say thank you, to our future suppliers I say give us a try let us earn your business your bottom line will thank you.

I read a great article in Recyclers Power Source this month by Ron Sturgeon; the article is about performance based salary for salvage yard employees. Ron explains how yards that have implemented this system saw significant performance increases from their people, the yards were getting much more sales from the counter people and more production from the yard help. In many instances the yards were doing much more business with less help! This reminded me of the time I spent as a counter man before I started Recore. When I was hired I was told that the counter man I was replacing (an hourly employee) did $4000.00 in sales in a good week (remember this was in the 80’s), my pay would be based on performance, 0- $4000 in sales I would get my base pay which wasn’t much more than minimum wage, on sales from $4000 to $5500 I would get a certain percent of the sales, on sales over $5500 the commission would go up and any returned parts would be deducted from next week’s sales. I was a little nervous since I had not been a counter man before but I took the job anyway, I worked my tail

603-437-3000 • 855-647-3267 • Fax: 603-437-1313

AUTO RECYCLING TODAY! cONtINuED frOm pagE 1

off and business improved tremendously, nearly every week I set new records for sales, I made good money and the yard made good money. Business was so improved that within a year the owner was able to sell the business for much more than he ever imagined based on the sales numbers I had produced. So I know for a fact that performance based salary does work for both the yard and the employee.

If you need new entry level employees as we did recently at Recore we have found a system that works pretty well for us. I have always hated the process of placing ads for help then the interviews then the 2 week trial then the whole thing over again if the person did not work out, the whole process is consuming. What we now do is call one of the temporary labor services we tell them what we want they then send someone over the following day. You give the person a try and see how they work out, if they don’t work you only have to give them a four hour minimum, then you can send them back and have someone else sent. It is easy to try different people and find the right person for the job, if they do work out you hire them, there is no buy out with the labor service. During the time you have temps they are not employees they are contract labor they are not on your payroll. We have hired two people recently using this system it works great.

With February now here I see a lot of people heading South to escape the cold temps, if you are going South good for you enjoy the weather and realize that when you get back winter is nearly over, see you when you get back.

2

NOT YOUR AvERAGE NEw YEAR’s REsOLUTION BY D. J. HarrINgtON

It is that time of year again. We scurry to prepare for the holidays with family and friends and here we are, the New Year has begun. Most of us feel obligated to make a New Year’s resolution of some kind. The same ones we very rarely keep. My favorites are “I will go on a diet”, “I will exercise”, “I will quit smoking”. These are wonderful things but what about our spirit, or souls? We need to listen and grow in 2013. Get back to basics, our families, our loved ones, ourselves! Listen to your heart to find your path. Listening is a light switch in the dark. God gave us two ears and one mouth, it was a hint. Your conscience is like a compass, all you have to do is sit still, listen and it will guide you. Once you find your true north you can begin your journey for 2013. As you start down the road

on your new course, you will find that all those material resolutions you made in the past begin to happen. You are in a healthy emotional place and all of a sudden you find you are losing weight, walking more, cutting back on smoking, all good stuff. But the really great stuff is your relationships will improve. When you are at peace with yourself and in a good place, you can open up to those around you. So as we begin 2013 search your heart, listen to your conscience and let them guide you to the best year of your life!Correspondence regarding this article should go to: Phone Logic, Inc., 2820 Andover Way, Woodstock, GA 30189

D. J. Harrington is an author, journalist, seminar leader, international trainer, and marketing consultant. He works primarily with customer service personnel, and his clients include such world-class companies as General Motors, DuPont, Caterpillar and Damon Corporation.

He may be reached at 800/352-5252. E-mail: dj@djsays.com. 52 weeks a year, we are as close as your telephone. Visit www.djsays.com to order my “NEW” books ~ “Your Prescription for Life” and “Mastering the Art of Success”.

New Year’s

resolutioN

FUN sUpER BOwL FACTs/TRIvIA

WWW. RECORETRADING.COM 3

The NFL Super Bowl is one of the most watched and most anticipated sporting events of the year. Even people who normally don’t watch the sport tune in for the big game. Here are some little known facts about the biggest football game of the year.Most Consecutive Appearances at the Super Bowl - The Buffalo Bills made four consecutive appearances at the 1991, 1992, 1993, and 1994 Super Bowls, yet they have never won a Super Bowl title. Most Wins - The Pittsburg Steelers have won more Super Bowl titles than any other team. Their current record stands at six wins.NFC No Show - The Detroit Lions are the only team in the NFC (National Football Conference) to never attend a Super Bowl. However, they won the NFL championship in 1935, 1952, 1953, and 1957 prior to the existence of the Super Bowl.Roman Numerals - Each Super Bowls is represented by a roman numeral. There have only been three Super Bowls with a single numeral - Super Bowls One, Five, and Ten (I, V, and X). The next single numeral game is Super Bowl 50 (L) in the year 2016. The following won’t be until Super Bowl 100 (C) in 2066.Longest Dry Spell - The Arizona Cardinals appeared in the 2009 Super Bowl against the Pittsburg Steelers. This was their first championship game since they played as the Chicago Cardinals in 1947.Commercial Costs - In 1967 during the first Super Bowl, a 30-second television commercial cost $42,000. The same length commercial during the 2013 Super Bowl will average a record $4 million. Super Bowl MVP - Joe Montana is the only player to win the Super Bowl MVP award three times. Over half of all MVP titles have gone to a team quarterback.Super Bowl Coaches - Don Shula (Baltimore Colts and Miami Dolphins) has served as the head coach in more Super Bowls (six) than any other coach. Chuck Noll (Pittsburg Steelers) with four titles has the most wins for a coach.The Green Bay Packers won the first 2 Super Bowls in 1967 and 1968.It is estimated that 7,000,000 U.S. employees will not show up to work the Monday after the Super Bowl. Super Bowl I was held in Memorial Coliseum in Los Angeles 1/15/67. The Green Bay Packers beat the Kansas City Chiefs 35-10. The Minnesota Vikings played 4 Super Bowls, but has never led a Super Bowl for even a single second. An estimated 325.5 million gallons of beer will be consumed on Super Bowl Sunday, enough to fill

493 swimming pools of Olympic size proportion. An estimated 1 billion chicken wings will be eaten on Super Bowl Sunday.

No Super Bowl game has ever gone into overtime.

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Sir Winston Churchill was asked to speak at a university graduation commencement. He walked to the podium and then said: “Never, Never, Never, Never, Never, Never, give up!” Then he sat down! As Prime Minister of Great Britain during WWII, he set a solid example of persistence; so this short speech was backed by the speaker’s very well-known reputation.One of the problems I see occasionally with business owners is that they will start to do a marketing project for their company and then suddenly quit. They quit for various reasons. Sometimes they get a fantastic response from a campaign and decide to relax, sit back and collect on it forever. Or perhaps they get a less than positive response, get discouraged and give up. Whatever the reason, giving up is not the right answer.There are lots of marketing strategies available that you can use to promote your business. But whatever strategy you choose, they all have one thing in common - they all have to be worked out to work! I know, I know, - because there are so many kinds of advertising strategies that you can use, it can seem confusing deciding which ones to try. But here’s the key: just get started and DON’T QUIT! Don’t just try a couple of things and then give up. In order to grow a strong company, you must continually do marketing of some kind. Your goal should be to find and do as many ways of marketing as you can comfortably handle. The idea is to make all your mistakes and failures on the smallest possible scale and enlarge the scale of the kind of marketing that is giving you the maximum benefit and success.One of the characteristics you’ll find among top leaders in companies who are at the top of their field is that they persist. They have ongoing consistency. They continually use many marketing strategies. Even if you have occasional failures, do as these leaders do and get back up and move on. They make adjustments, where necessary, and move ahead.A simple marketing success strategy is this: be doing something all the time. Remember: “inch by inch it’s a cinch”. Many business owners become successful by using this strategy; and you will, too! And, as Churchill so wisely said, “Never give up!”Here are a few marketing strategies you could try, in no particular order:1. Mail something to a prospect list. You can get prospect lists

easily. You can get a list of body shops and mechanical shops within any zip code. Despite the cost of postage, getting a great offer into the hands of a qualified prospect is still one of the most effective things you can do. Studies have shown that half the human beings on the planet are by nature “tactile”. That means they respond best by having something in their hands.

2. Mail something to your customers. Studies have shown that for every month your customers don’t hear from you, you lose 10% of their relationship with you. After 10 months of not hearing from you, you have no relationship with them left. Sending even a simple postcard to them, once in a while, helps.

3. Use social media to reach the people who aren’t tactile. This other half of people who aren’t “tactile” will respond eagerly to electronic media. Social media is one of the most powerful online marketing tools today. So get your company setup on Facebook, Twitter and YouTube.

4. Use promotional products to put something imprinted into the hands of your prospects and customers. It is a tried and proven way to market your business. You can have your company name and phone number printed on just about anything. You can get ink pens, mouse pads, clipboards, clothing items, and thousands of other items.

5. Utilize trade shows and consumer shows to get your recycled parts message out to your marketplace. Thousands of people attend trade shows and local consumer events. Being there with information about your recycled parts and handing out free coupons to prospects is a great way to pick up more customers.

6. Use Signs if your property can be seen from a busy road. Why not put up signs that tell about your products and services. Put signs on your fences and buildings. Be sure you obey zoning laws in your area. One place had an ordinance against putting up signs, but no restrictions for signs on vehicles, so a business painted signs on the side of trucks and parked on their property in places easily seen from the road.

7. Sell your parts online if you haven’t already done so. Now may be the time to get setup to sell your parts on your website. It is not as hard to get setup for this as it used to be. There are lots of ads for this kind of service to be found in most recycler publications.

Maybe you will notice other ways you can get your name and what you do out before your buying public. Go ahead and try that method – even if you try it conservatively at first, to see if it works for you. But like that great man Churchill said, “Never give up”. Keep on, keeping on. Persistence in advertising has its reward. If you keep on advertising, you keep on doing business.Used by permission, Mike French & Company, Inc. All rights reserved. Contact Mike French at 1-800-238-3934, or email at mike@mikefrench.com; or visit his website at www.mikefrench.com.

pERsIsTENCE! BY mIKE frENcH

WWW. RECORETRADING.COM 5

NEw CONTEsT—IDENTIFY THE YEAR & MAKE OF THIs CAR!

Hint: Don Belisle’s Dad, Walter Belisle owned this stock car that raced at the Pines Speedway in Groveland, MA.

Be the first to give us the correct year and make of this car and you will win $100. You can email your response to sales@recoretrading.com, fax it to us at 603-437-1313 or even mail it to us at 22 Manchester Rd., Derry, NH 03038. Please include your name and telephone number so we can contact you if you are the winner. All entries must be received by February 28, 2013 to be eligible.

TAKE TIME TO LAUGH!Abe Lincoln Walks into A Bar.An older man walks into a bar wearing a stovepipe hat, a waistcoat and a phony beard. He sits down at a bar and orders a drink. As the bartender sets it down, he asks, “Going to a party?”

“Yeah, a costume party,” the man answers, “I’m supposed to come dressed as my love life.”

“But you look like Abe Lincoln,” protests the bartender.

“That’s right. My last four scores were seven years ago.”

Hello FatherTwo priests decided to go to Hawaii on vacation. They were determined to make this a real vacation by not wearing anything that would identify them as clergy. As soon as their plane landed, they headed for a store and bought some outrageous shorts, shirts, sandals and sunglasses.

The next morning they went to the beach dressed in their tourist garb. They were sitting on their beach chairs, enjoying a drink in the sunshine when a drop dead gorgeous topless blonde walks by wearing nothing but a bikini bottom. They couldn’t help but stare and as she passed them, she smiled

and said “Good morning, Father, Good Morning Father,” nodding and addressing each of them. They were stunned.

How in the world did she know they were priests? So the next day, they went back to the store and bought even more outrageous outfits to wear at the beach. Once again, the two priests (incognito) settled on the beach in their chairs to enjoy the sunshine. After a while, the same gorgeous topless blonde wearing only a string bikini came walking toward them. Again, she nodded at each of them, said “Good Morning, Father” and started to walk away. One of the priest couldn’t stand it any longer and said, “Just a minute young lady, we are priests and proud of it, but I have to know, how in the world did you know we are priests dressed as we are?”

She replied, “Father, it’s me…Sister Mary Francis.”

It’s really important that we take time out of our busy lives to find something to laugh about. So if you have heard any good jokes lately, we would love to hear from you. Please send us your favorite joke and who knows, we may like it so much that we’ll pay you $100 and print it in one of our newsletters. Email your jokes to sales@recoretrading.com, fax to 603-437-1313 or mail them to 22 Manchester Rd, Derry, NH 03038.

wHY DO BUsINEssEs sTOp GROwING? BY JIm cOuNtS

Every time we hire an additional employee we reduce the amount of money available to buy fresh vehicles unless we are buying at least four times their payroll in additional sales. Every time we sell a part which cost us more in overhead to sell it then it creates in income, we reduce the amount of money available to buy fresh vehicles. Every time we sell a brokered part where the gross margin is less than it costs us to sell and deliver that part, we reduce the amount of money available to buy fresh vehicles. Then, when we have less money, we reduce the number of vehicles or the quality of the vehicles we buy. This is happening at the same time we are still paying for all of the payroll, equipment and expenses needed to process the vehicles we are not buying. This results in an additional reduction in the amount of money available to buy fresh vehicles. I described this as “circling the drain”. Each lap around the drain goes a little faster and faster and gets ever closer to the bottom. Many of the business practices of the ‘80’s are still commonly used by recyclers without realizing that their cost of doing business and the cost of vehicles has made those practices both impractical and unprofitable. The only way out of this cycle is to change the way we do business. While the past makes a very good conversation topic, it does not assure us of making a profit. We all know that if we buy extra inventory, sales will go up. Does it not also make sense that if purchases go down, sales

A lot of things can affect the growth of a business and we only have time to cover a few here. The number one reason recycling operations stop growing is lack of sellable inventory. Note, I said “sellable” since having a warehouse full

of parts and a yard full of vehicles does not necessarily mean we have sellable inventory. There are still a lot of people who think the way to make more money is to keep the vehicles longer and longer in order to sell a few additional parts. Let me say here that you’re a lot better off having fresh vehicles than you are trying to sell a few hundred dollars more off old vehicles. The number one reason people are not able to buy the inventory they need is they underestimate what the vehicles will produce in sales. The number two reason is because their overhead is entirely too high for the amount of sales they do. The number three reason is they run out of money, primarily because they do not keep payroll expenses in line with sales. I think it is fair to say that 90% of the recyclers in the U.S. and Canada do not know how much it cost them to process a vehicle completely through their organization or sell the average part. Without knowing these figures, we are doomed to buy vehicles which will never make a profit and miss buying the higher gross margin vehicles which could be very profitable. It’s not uncommon for me to see recyclers spend half of their day selling the parts which only make up 20% of their income. Obviously, there’s no way to make money throwing half of our resources at 20% of our income. This is an excellent example of what we do not know keeping us from growing. FEBRUARY 2013

Reader Response # 505

Reader Response # 505

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will too? This brings us back to the original point that a full warehouse and a yard full of old cars does not necessarily mean we have sellable inventory. Almost a third of our sales come from the vehicles purchased in the last 30 days and 50% of our sales come from vehicles purchased in the last 90 days. If 30% of our sales come from what you bought last month, and we slow down on purchasing, does it not then make sense then that you’re going to see a reduction in sales and profits very quickly? Buying is the most important job in the company. Unfortunately, many recyclers decide what to buy and what to pay for the vehicles “when they get a minute” or “at the last minute”. I am yet to find a recycler who does not want to know how many dollars of sales we did today, yet how many of those same people know how many dollars worth of future sales we bought today. If sales are driven by purchases, shouldn’t we be more interested in what we have purchased than what we have sold?Bottom line, the businesses stop growing because of the business practices of the company. This means we have to change our priorities and way of thinking if we want the business to grow to the next level or to maintain the profits of the past.Correspondence regarding this article should be addressed to Jim Counts, 6379 Cactus Drive, Fort Worth, TX 76135. Visit our web site at www.CountsConsulting.com; email Jimcounts@USA.com or phone 817-238-9991.Copyright in 2012 by Jim Counts. All rights reserved. Do not copy or reproduce without prior approval.

FEBRUARY 2013

Reader Response # 505

USED EQUIPMENT FOR SALE!In Stock

USED WHEELS• JOHN DEERE 20.5x25 544 C & D, 644 C & D• KOMATSU 20.5 x 25 WA250 – 1 through 3• CASE 20.5x25 621, 621 B & C• FIAT ALLIS 20.5x25 FR–15

• JRB 416 SERIES 96" frame with adjustable new 4', 5' or 6' tines available

• 5' CAT IT – 28 utility fork assembly (2 available)• 84" Center shaft mounted fork assembly for John Deere 644E-G, pin-on• 6' Car body fork assembly (will bracket to fit your machine)• 6' BRCO car body fork assembly for Volvo quick coupler• 6' JRB car body fork assembly for JRB 416 series• 5' PEMBERTON 96" utility fork assembly center mount shaft, fits Pemberton quick coupler (2 available)• 5' CAT 936-E utility fork assembly, fits Balderson quick coupler• 5' CAT 930–84" utility fork assembly• 44" CAT skid steer adjustable fork assembly,

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ACS• CASE 621/721, 621/721 – B & C (1,000 Series)• CASE 621/721, 621/721 – B & C (2,000 Series)• CASE 621/721, CXT (2,000 Series)• JOHN DEERE 624G with bucket (1,000 Series)• JOHN DEERE 644 E with bucket (1,000 Series)

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wHY DO BUsINEssEs sTOp GROwING? cONtINuED frOm pagE 6

WORKING HARD TO EARN YOUR BUSINESS! We decann and process catalytic converters. We have the first and the only in-house precious metals laboratory in the entire Northeast! This means we can pay you based on the return of precious metals from your cats and you will average between 12% and 28% more than selling by the piece.

By eliminating 2 tiers of middlemen, and because we sell directly to the manufacturers, we can pay the highest prices for your cats even if you want to sell by the piece.

We pay top dollar for aluminum rims and other automotive scrap.

We rent out our car crusher for FREE, simply sell us your flats and some cats.

We promise reliable friendly, personalized service to meet your individual needs.

We pay you immediately on your terms, cash or check.

Container and pickup service available throughout the Northeast.

Our dock is open Monday through Friday for drop off with professional buyers available and immediate payment.

Call us today, we want to prove to you that it pays to do business with Recore.

603-437-3000 • 855-647-3267 • Fax: 603-437-1313

WE WELCOME YOUR COMMENTS Please know that any article or information in our newsletter is the expressed opinion of the writer. If you are enjoying our newsletter, we’d love to hear from you and if for any reason you are not, just let us know, and we will remove you from the mailing list. Contact us at sales@recoretrading.com.

Newsletter www.recoretrading.com

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