Auto Detailing News Fall 2019

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THE BUSINESS OF DETAILING (Good) Help Wanted If you’re hiring…. you better know what to look for... By Rob Schruefer rob@onspotdetailing.com Rob Schruefer is the owner of On The Spot Detailing out of Columbia, Maryland. He proudly serves on the board of the International Detailing Association and works tirelessly to ensure that detailing business owners receive business development support to help them achieve their goals. Hiring employees is a big step in the growth of a detailing business. The decision to bring in staff to help with the day to day operations can be as terrifying as it is exciting. It presents new challenges as well as the opportunity to expand your business. Having employees frees up time to build your business, and develop more work, clientele and opportunities. It also drastically complicates the situation and forces you to wear several different hats. There are three common ways to pay employees; hourly, piecework, and salary. Each one should be weighed and selected for the best fit for you and your business. There is no right way, and any of the choices, or a combination, may be your best bet. Here are a few things to consider: Hourly This is the most common way for detailing employees to be paid. It is a flat, per hour rate, given to each employee for every hour that they work. The amount paid per hour will depend on your business and market. Typical pay will be between $11-$20 , depending on skill level and job type. Pros: • Pay structure (starting pay, seniority, certification levels) can be mapped out ahead of time. • Allows for incremental raises. • Hours can be cut during slow times. Cons: • Labor has to be watched and controlled. • Employees will constantly ask for more (or less) hours. • Overtime will cost you 1.5x times the normal rate Piece work/Commissions Piece work-based payments work better in wholesale or dealership environments. Each employee is paid based on the work that they are able to complete each day. The amount paid per job should be based on the service amount, but is typically between 30%-40% of the service cost. Pros: • Labor costs are tied to work completed. • Employees are rewarded for working faster and more efficiently. • Bad workers weed themselves out. Cons: • Extra work is required to track each employee’s completed services. • Asking employees to help each other or with other tasks presents a pay problem. • Employees must make minimum wage, so slow workers require additional tracking. Salary Salaries are generally reserved for management, but can also work for mid-level employees who are of value to your business. A set salary also provides the stability of knowing exactly what your payroll will be from week to week. Salaries will vary greatly from business to business and should be directly tied to revenue. Pros: • Labor costs are fixed. • Employees know exactly how much they will make each paycheck. • If certain criteria is met, overtime does not apply. Cons: • Labor % can run high during slow periods. • Salaries could cost more than hourly rate. Whatever pay method you choose, it is essential that you select the right one for YOUR business. Every detailing company is structured differently and each one offers various services, and widely different pricing. The most important part is knowing your labor percentage and how that will ultimately affect your bottom line. Speaking with other detailers in the industry, your labor rate should ideally be around 30%-40%. If you work to stay in this range, your business should be profitable and successful. Subcontractors vs. W2 employees I would like to take a second to also talk about 1099 subcontractors. I hear all the time from people thinking they are beating the system and avoiding employer problems by making the employees subcontractors and not W2 employees. To properly qualify to be considered a subcontractor, an employee must provide everything except the job. If you are providing them training, supplies, or equipment, they are an employee, NOT a contractor. Issuing them with a 1099 instead of a W2 could land you in hot water with the IRS, your insurance company, and labor lawyers. It is best to just do the right thing and put them on payroll, rather than risk your business, your reputation and significant fines. Hire These Guys While You’re At It If you have made the decision to hire staff, your next conversation should be with a payroll company. Attempting to do payroll by yourself is time consuming and difficult. There are hundreds of payroll companies out there to explore, and the right one can be hired for a small fee. Having a company ensure that taxes are calculated correctly and employees are paid properly could mean the difference between success and disaster. 6 | AUTO DETAILING NEWS | VOL. 4, NO. 4 • FALL 2019
OSHA NEWS OH NO … It’s OSHA News! It’s not all bad, but if you don’t already know, the Occupational Safety and Health Administration of the United States Department of Labor (OSHA) has announced the following… Businesses cited for exposure to hazardous chemicals, improper ladder safety As detailers continuously work with chemicals, and are also often on foot in slippery conditions, it is important to make sure each and every employee is safe, otherwise OSHA will hand out stiff penalties. In San Angelo, Texas, OSHA cited 7 S Packing LLC – operating as Texas Packing Company for exposing workers to releases of hazardous chemicals. The company faces $615,640 in penalties. OSHA determined that the meat-packing facility failed to implement a required Process Safety Management (PSM) program for operating an ammonia refrigeration unit containing over 10,000 pounds of anhydrous ammonia. The employer also failed to provide fall protection, guard machines and equipment, control hazardous energy, and implement a respiratory protection program. The PSM Covered Chemical Facilities National Emphasis Program focuses on reducing or eliminating workplace hazards at chemical facilities to protect workers from catastrophic releases of highly hazardous chemicals. PSM standards emphasize the management of hazards associated with highly hazardous chemicals, and establishes a comprehensive management program that integrates technologies, procedures, and management practices to prevent an unexpected release. The company has 15 business days from receipt of the citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission. And in Tumwater, Washington, OSHA fined the Dollar Tree for repeated safety violations, including blocked emergency exit routes, unsafe ladder use and improper stacking of merchandise . A recent inspection resulted in several “repeat willful” and other violations for unsafe merchandise storage and handling, and obstructed exit routes. The $503,200 fine is also related in part to L&I finding the same safety hazards at the store during multiple visits. The violations continued even after the company was informed by an L&I inspector of the safety hazards during earlier visits and was provided specific instruction on how to improve employee safety at the store and avoid further violations. “Even after multiple large fines, it appears this company has not gotten the message to ensure their safety and health system is working in every Washington store location,” said L&I Assistant Director Anne Soiza. “This fine is one of the largest we’ve issued, and we will apply pressure to Dollar Tree until its leadership takes sustained, comprehensive steps to prevent serious hazards.” This is the third substantial L&I citation and fine involving Dollar Tree in just over a year. Since the beginning of 2017, L&I has completed 15 inspections at Dollar Tree stores after complaints and referrals about unsafe working conditions. The Virginia-based company has dozens of stores throughout Washington. Prior to this most recent citation, Dollar Tree has been fined nearly $593,000 since 2013. Last year, a store in Bonney Lake was fined $166,000 for three willful violations, and a Kelso Dollar Tree was fined $140,000 for violations similar to the ones found at the Vancouver store in this recent inspection. Dollar Tree’s corporate office controls inventory for local stores, and shipments arrive frequently. Challenges with too much inventory and not enough storage space lead to high stacks of boxes, often leaning over, which cause blocked and impeded pathways and other hazards. Improperly stored merchandise can fall, resulting in serious injuries or death if the boxes strike employees or cause employees to fall, or if exits are blocked during an emergency. Lifting heavy boxes onto over-the-head stacks is also likely to cause strains and sprains or serious back injuries. In the Vancouver store, workers were also climbing on shelving units, which can result in falls. The violations are not unique to Washington. Dollar Tree locations around the country have been cited for improper stacking of merchandise boxes, mostly in their storerooms, and for blocking exits or impeding pathways. The company has now been placed in L&I’s Severe Violator Enforcement Program, which means its stores are now subject to inspections at any time, among other things. Dollar Tree has appealed this citation, and it could take several months for the appeals process to be completed. Penalty money paid as a result of a citation is placed in the workers’ compensation supplemental pension fund, helping injured workers and families of those who have died on the job. Carbon Monoxide exposure kills two people OSHA has cited AJR Landscaping Inc. – based in Cresskill, New Jersey – for exposing employees to carbon monoxide (CO) after two workers succumbed to the toxic gas. OSHA initiated an inspection after the Washington Township New Jersey Police Department notified the agency that the workers died from CO exposure after a gasoline-powered lawnmower was started inside an enclosed company trailer that transported the crew to a jobsite. OSHA issued serious citations to AJR for exposing the employees to carbon monoxide, and for failing to train employees to recognize the hazard. The company faces penalties of $17,051. “Any time there is a gas-powered motor or engine running in an enclosed space, there is risk of exposure to exhaust fumes, which contain carbon monoxide, an odorless and poisonous gas,” said OSHA Area Office Director Lisa Levy, in Hasbrouck Heights, New Jersey. “This tragedy was preventable if the employer had adhered to basic safety and health practices.” OSHA provides compliance assistance resources on preventing carbon monoxide poisoning at https://www. osha.gov/OshDoc/data_General_ Facts/carbonmonoxide-factsheet.pdf. The company has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission. OSHA offers suicide prevention tips As National Suicide Prevention Week is just a few weeks away, taking place September 8, 2019 – September 14, 2019, OSHA wants you to know that there are many resources available all year round for those who are suffering from depression and having suicidal thoughts. OSHA wants every worker to know that If you’re in crisis, there are options available to help you cope. You can also call the National Suicide Prevention Lifeline at any time to speak with someone and get support. For confidential support available 24/7 for everyone in the United States, call 1-800-273-8255. Or you can chat online at Online chat suicidepreventionlifeline.org/chat. VOL. 4, NO. 4 • FALL 2019 | AUTO DETAILING NEWS | 7
Page 1 and 2: VOL. 4, NO. 4 FALL 2019 what is the
Page 3 and 4: CONTENTS Publisher’s Note . .....
Page 8 and 9: OSHA NEWS New rule will revise requ
Page 10 and 11: GET WICKED CLEAN Use Clean & Sheen
Page 12 and 13: Nitty Gritty for Vail Resorts. I st
Page 14 and 15: Nitty Gritty What does it take to d
Page 16 and 17: ELBOW Grease By the Books Q: Has an
Page 18 and 19: ELBOW Grease Balancing it out Prope
Page 20 and 21: EVENTS CALENDAR SPLASH! OCT 10 Mira
Page 22 and 23: Detailing News CarMax makes massive
Page 24 and 25: DETAIL DOCTOR 3. Neutralize damaged
Page 26 and 27: The POWER of : • Increased profit
Page 28 and 29: DETAILMAFIA Andrew Swenson The Leve
Page 30 and 31: DETAILMAFIA are picky, but anyone c
Page 32: YOUR RELIABLE SUPPLIER FOR THE DETA

Auto Detailing News Fall 2019

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