BOTTOM LINE BOOSTER

Program with Profits

Part 2 Experts agree that to grow your business

you must control your commodities. BY MICHELLE KEADLE-TAYLOR

E 54 Automotive Recycling | July-August 2015

very auto recycler’s dream is to grow their business with- out having to invest in more cars especially when finding good quality salvage contin- ues to be an area of concern

in the industry. In order to survive, there needs to be another way to expand the business; perhaps taking a new approach to something that you already have on hand.

For Mike Kunkel, Independent Consultant, Profit

Team Consulting, and Benny Cunningham, co-owner of Cunningham Brothers Auto Parts and co-founder of Automotive Commodity Exchange (ACE), that something is changing the way you look at your cores and seeing them as precious commodities that are capable of more than doubling your revenue. They are passionate believers and supporters of every yard having a core program (that is seen as a commodity program) and controlling your commodities to increase your revenue. “We want to completely change a mindset and cul- ture of how independent professional auto recyclers see their cores by helping them to understand the value of their cores and seeing them instead as com-

modities,” said Kunkel. “When you control your com- modity you can get what it’s really worth without doing a lot more work. However, it needs to be called a commodity and treated that way instead of treating it like a core. When you begin to do this, you will start to get the money it’s really worth and prevent its true value from being watered down because you will treat it more carefully so it doesn’t get treated poorly and get damaged or broken.”

Growing What You Already Have According to Kunkel, the auto recycling industry

has been relatively flat when it comes to growth for the last five to six years. Both Kunkel and Cunning- ham get extremely excited about the opportunities that come to the recycler once he or she has changed their mindset and embraced the commodities pro- gram.

They feel the program delivers a real opportunity to truly add growth, without having to have the ability to be able to buy more cars. It just takes harvesting more off the cars you already have and changing your perspective. Many recyclers have commodities they already own but haven’t identified yet. “It’s a great program because it adds profit to the bottom line without increasing expenditures,” said Kunkel. “The recycler is the only source other than