SPOTLIGHT ON EXCELLENCE

It’s a constant evolution in a

salvage yard. You have to change with the times to be able to make money.

“I had employees out there shoveling for two days just to uncover the vehicles so we could see what we had,” Roberston recalls. It was a frustrating season for a recycling operation that bases its business on having the parts customers need, when they need them.

Be Adaptable to Be Profitable

Roberston is not afraid to tweak or even totally shift the company’s business plan if market conditions war- rant, and he estimates the company has revamped its strategies and ways of doing business at least six times. “Just because something has worked for you in the past doesn’t mean it will in the future,” he adds. For example, he recalls the 1980’s when Robert-

Robertson’s also has maintained its ARA membership for four decades and is a CAR and Gold Seal facility. Robertson currently serves as a regional director, con- tinuing the family tradition of ARA involvement. Many members may recall his father and uncle as ARA movers and shakers in the 1980s. In a month, Robertson’s 35 employees dismantle 200 domestic and foreign autos, SUVs and light- and medium-duty trucks. In 2014, Robertson purchased a whopping 3,300 vehicles. Unfortunately, heavy snows last winter in New England made for challenging con- ditions that slowed the workflow, made processing vehicles nearly impossible and packed the yard with inventory.

FASTfacts

Scott Robertson’s Top Five Best Practices 1. Be flexible so you can adapt to changing market conditions. 2. Expect change so you are prepared when it comes. 3. Operate strategically in all you do, whether it’s using technology, or buying salvage or planning advertising.

4. Optimize the size of your company. Sometimes bigger isn’t better. 5. Educate yourself by participating in ARA conferences, meetings and committees, reading and talking to others in the industry.

60 Automotive Recycling | July-August 2015

son’s owned a wrecker and was selling 100 repairable wrecks a month with 100 employees, five buyers, and even a pilot on staff. “That strategy quickly went sour when the auctions started admitting Class 2 license holders and salvage titles were introduced,” Roberston explains. As a result, the family repositioned the busi- ness to be mainly a recycled parts wholesaler with repairables as a sideline. Likewise, Robertson’s now focuses on seven-to-12- year old, B- and C-grade vehicles instead of later model, higher quality vehicles. Roberston, who does nothing businesswise without sound reasons behind it, explains that this switch in inventory strategy made financial sense for the business. “Our ROI on newer vehicles was going down because of the competition at auctions,” he says. “We can make better margins with the older B and C vehicles.”

Besides the competition at auctions, Robertson’s, like its industry peers, also has had to deal with shrink- ing margins in recent years. “It’s great to keep click- ing the mouse, but if margins are shrinking and your cost of sales is high, you can’t create profits with increased sales, and you aren’t making any money,” he says. The answer, he stresses, is to be able to shift your business plan to maintain profitability.

Understand the Scrap Market

With a finance degree from Fordham University, Robertson may have a better than usual understand- ing of scrap market dynamics. But understanding at least the market drivers and having a strategy in place to cope with fluctuations is critical to financial success