NSM Houston TX Leader 2018

eLeader Mighty Distributing System of America Spring 2018 NATIONAL SALES MEETING AND SUPPLIER TRADE SHOW Houston, Texas

W E MINGLED IN A CANYON of skyscrapers in the late for the rst time? Strolling the crowd for a little harmless eavesdropping, afternoon that soon, with the night, turned into a scene you could pick up snippets of shop talk, battery programs, bulk oil straight from the movies—with lights from a thousand sales, sympathies expressed for misfortunes, farming, California wines, of ce windows of the glass and steel towers that ruled basketball, great sales tips, soccer, RFI problems, schoolwork, great the Houston skyline. Our traditional Welcome Reception occupied the new hires, repairing Jaguars, Taylor Swift, the problems with key fobs, top of the sixth oor of the Marriott Marquis, which is known for its huge, snakeskin boots, shared “best practices,” servicing diesels, hot tech tips, imposing Texas-shaped promenade outlined in illuminated turquoise training classes for customers, and a casual discussion of whether losing water for night swimming. weight is really worth it—debated over two huge pieces of cheesecake and coffee. We’re a hearty bunch and it showed. The brisk gusts of the night were easily endured as we warmed our souls with offerings from the bar and This night of bonding helped tighten our ranks and motivated us to soak clutched our St. Arnold’s IPA, or bottles of Houston’s Eureka Heights or up the upcoming program so as to be able to Deliver the Difference back Heineken, or played it safe with a Bud Light. There was some serious home. And speaking of home… eating that night with endless trays of lip-smacking nger foods, appetizers, crunchy veggies and Texas-sized BBQ sandwiches that fueled When people back home hear about our trip to Houston, they may ask our energy to keep the socializing going full-throttle. “Was this for business or pleasure?” Considering all the fun we had with old and new friends, plus all the great stuff we learned, maybe the best How could there be this much spirited conversation among men, women answer is, “We spent a few days enjoying the pleasure of our business.” and kids, who either knew each other for years or were meeting tonight Texas-sized sandwiches made a big hit with the gang! Keith Wilson, Stephen Viau, Pam Butler, Randy Birmingham, Keith Healy and Tony Berry Rachel Overby, Rodrigo González, Melissa Alvarado and Ken Voelker McKayla and Deonte McCall Mike Hudgins and Joe Ritter Gwen DiPace, Stephanie Helm, Tim Craig, Ron and Karen Mary and Joe Reck, Crystal Stephenson Pasquale and Philip Eggen Ryan Walter and Dan Penner Tom and Vickie Carney Meyer and The Deuce Ron Chitwood, Gail Meyer and Blair Smith Carmen Strickland, Jonathan Stanley, Bud Heckman, Kelly Belz, Joe Rutter and John Whisman Kirk and Debbie Driggers Yockey and Vick Terry and Jennifer Lasater Matt Morris and Kevin Caswell —2—

What’s YEXT? SPECIAL GUEST SPEAKER, RON MULLIKEN Ron Mulliken, VP Enterprise Sales, Yext, introduced the Mighty System to our newest tool. Yext has the leading Digital Knowledge Management (DKM) platform. It is their mission to give companies control over their brand experiences across what is today’s digital universe. Maps, apps, search engines, voice assistants, and other intelligent services that drive customers’ discovery, decisions, and action are what make up this digital universe. He shared with us just a few of the automotive businesses from OEs and the aftermarket that are already using the Yext Knowledge Engine™ to manage their digital knowledge, boost brand engagement and ultimately increase sales. Ron concluded by telling the audience he was excited to meet them at the Yext booth, and encouraged everyone to learn more about our new tool in the breakout, “What’s Yext?” Memorable Excerpts from Ken Voelker’s Welcome on Opening Day Ken immediately established the desired perspective, opening the meeting with all the right reasons for celebrating our successes as franchises and sales and service personnel—our ve years of record sales, a great relationship with Gonher, our parent company, and a procession of solid new franchise owners whose faces appeared on the giant screens. He cited the inevitable challenges that must be met head-on, adding with assurance that Mighty is certainly up to the task. “What keeps me up at night, however, is industry consolidation…like Pep Boys shooting for 10,000 locations over the next few years, and Mavis Discount Tire, Express Oil Change and Tire Engineers creating a combined company of 830 locations after EOC bought three former Mighty franchises. “So, while industry consolidation is a threat, what can we do about it?” Ken stressed adding new customer types like car washes, dealerships and eets, and adding the relevant new products and equipment accordingly. “Avoid customer concentration. Relying on a major customer who represents 30 to 50 percent of your business is a dangerous situation, particularly if they could be an acquisition target. Diversify your customer base—serve them and stay close to them.” THURSDAY OPENING SESSION —3—

Breakouts The Mighty Customer Experience Mystery Shopping/10-Minute Vehicle Inspection Training Successfully delivering The Mighty Promise generates the customer experience expected Mystery Shopping: Results were shared from an 11-store tire chain that Ronnie Barassi Josh D’Agostino in today’s competitive marketplace. Facilitated “thought” their stores were doing a decent job with vehicle inspections. by Ronnie Barassi and Josh D’Agostino, this However, they agreed to be mystery shopped at four of their stores. seminar focused on defining what Mighty does Pictures of the “altered” vehicle were included in the presentation along best, understanding and identifying a new level with blank inspection forms after leaving the stores, varied prices for the of consumers termed Emotionally Connected same services, oil change labels with different mileage intervals, and the Customers, seeing samples of emotional services left undone. messaging, hearing customer service stories from other companies, and sharing ideas about what Mighty can do to stay ahead of the competition. Results: The owner quickly realized they needed a better program. Thus, The seminar began with uncovering The Mighty Promise: “Driving customer efficiency and profitability by providing inventory stocking, inventory management and business training Mike Hudgins he asked for the Mighty sales and training program at all the stores. Sales expertise.” It continued with defining an Emotionally Connected Customer – one who is not just went up over 25%, new lines were added, competition (Valvoline and local highly satisfied, but who can’t live without Mighty! Examples of advertising designed to create emotional responses were on display, as well as stories of exceptional customer service from parts stores) was put to the curb, and Mighty obtained a more loyal and satisfied customer as a other organizations. The seminar wrapped up with action items to help Mighty operations continue to Deliver the Difference and create a customer experience like no other. result. Are You Fleetwise? 10-Minute Vehicle Inspection Training Program: A new “leader led” training program Jack Alexander certainly is. His wealth of knowledge and experience when was shared in this portion of the seminar, and Mike covered it as if he were training a group of it comes to how to approach and sell fleets was on display during this technicians. It includes the previously released 10-Minute Inspection Video, but also now includes breakout. introductory slides, five video segments and questions for the Mighty salesperson’s audience. This program will be tremendously valuable to the salesperson and customer. A Mighty salesper- Gary Vann served as a facilitator while Jack shared his insights. Why target son can simply review this presentation/video and then present it to their customers with the goal fleets? What type of fleets should you target? How do you find them? How of checking all cars thoroughly and growing PM sales. do you approach and qualify them? What tools do you need? Jack answered these questions and more with real world examples and field-tested Selling Mighty VS7 ®Chemicals strategies that actually work. One example: Jack stressed the importance of preparing a fleet-specific application chart. This handy reference guide is a Tim Bowlick, along with Larry Barnes of Phillips 66, Jack Alexander time-saver to fleets as it can quickly be used to find the parts needed for a looked at what makes our chemical program different. specific vehicle. The focus was on “The Process is the Program and the Program is Training.” Jack also covered how to deal with common objections such as: “We’re on a bid system here” and “We have to buy local.” A new four-page Fleetwise brochure was released. Salespeople were They investigated what the System is doing today encouraged to use this new brochure and other tools Jack shared when calling on fleets. and how to present the “Complete Program” to grow Fleets represent less than 2% of Mighty’s sales. So, there is tremendous potential for growth in this market. Are you targeting them in your franchise? Seems like a wise thing to do! business. This included VS7 Lite (no equipment), VS7 equipment (options), VS7 Training, Certification, War- ranty & Guarantee, Boot Camp and new VS7 products. Tim Bowlick Larry Barnes There were case studies to show how a few franchises What’s Yext? were utilizing the program and their resulting success. Presenting the Complete Program can and In a society that is driven by digital technology, will build long lasting, growing customers. the product and service priorities of customers, Selling Mighty Lubricants industries and companies are changing and This breakout continued the focus on Mighty’s lubricants program as a evolving faster than ever. Today’s digital growth strategy. The 75-minute presentation outlined the ways Mighty is advancing this product category through enhanced support programs and marketing has an incredible influence, not only sales aids. Brad Bradshaw, Mighty’s EVP of Marketing & Product Manage- ment, began with an overview of the program and reviewed the agenda. on people’s interactions and life habits, but Mike Hinderleider, Mighty’s Director of Chemical and Lubricant Programs, also their work and purchases. So how do we followed with a brief review of API. He then introduced Warren Distribution as Mighty’s new manufacturer and supplier of Engine Guard® products. maximize our brand awareness and its impact on Current suppliers were discussed along with their roles and responsibili- Mike Hinderleider ties to Mighty. The newly added lubricant support tools and programs were a shifting marketplace? Kate Ross and Lindsay presented. A few Mighty best practices and incentive opportunities closed the presentation. Kate Ross Lindsay Kolinsky, Yext Kolinsky explained what Mighty is doing to help our local franchisees and salespeople stay on top of, and visible to, their customers. The seminar introduced the Yext Knowledge Engine™ tool where attendees learned to control their location’s presence across the web. What’s more, each third-party listing directs traffic to each franchise location page vs. mightyautoparts.com. Finally, attendees learned to access easy analytic tools to see how their individual pages are performing across the web. —4—

Saturday Symposium Sizzles! One of the highlights of the Saturday morning general session was a five-part symposium presented by five Mighty franchisees and salespeople. Each had five minutes to share one way they are “Delivering the Difference.” CAR WASH AND DETAIL PRODUCTS – HECTOR RUIZ A CONSULTANT APPROACH – ED GREENE First up was Hector Ruiz, Franchisee of the Year nominee from Ed Greene from Mighty of Central North Carolina El Paso, Texas. He shared his experience with car wash and delivers the difference by taking a consultant approach. detailing products. He presented how to handle the challenge His powerful case study blew us away. A two-location of providing product samples, four door-opening products, the quick lube was averaging 35 oil changes a day. Ed’s importance of volumetrics, and how he supports his car wash Performance Watch revealed they were selling two customers. Excellent! cabin and ve air lters a month! And both stores were making less than $1,500 in pro t on air and cabin air A PERSONAL TOUCH – DAVID HANSEN lter sales for the entire year! Next, Dave Hansen, Rookie of the Year Nominee, from Mighty Enter Ed with his Mighty solutions. The results? For the last year, they of Rhode Island, offered his key to success—delivering the are averaging eight cabin air lters and 19 air lters a week! And pro ts difference with a personal touch. His message, “In the end, exploded to more than $50,000+ on those two items alone. Impressive! it comes down to people and relationships.” He related how going the extra mile to help Being a consultant and truly helping his customers with business them out in a jam and show- solutions is really paying off for Ed! ing personal interest has not only grown his business but TRAINING – RICHARD ASHLEY brought great personal satisfaction to him as well. Thank you, Dave! Richard Ashley from Parts and Service, Inc. leads with BATTERIES – KARL FAUL training. Even on cold calls, Richard has developed an Karl Faul, our 2017 approach that is a sure door Salesperson of the Year from opener: “Have you and Mighty of South Florida, your staff been offered an presented his keys to selling in-house, up-to-date (topic) Mighty Batteries. Talk about clinic?” This often leads to a discussion of credibility, Mighty of South Florida grew their battery sales from training needs, a free training class, and 500 batteries in 2016 to over 1,200 batteries in 2017! And just business follows. Richard’s experience: nine new customers generated more than half of their battery Free training = lifetime customer! Training is a de nite difference maker. sales. Wow! Karl outlined his strategy: rst, tell the East Penn story, second, establish product quality, and third, deliver the Mighty Program of training and We appreciate Hector, Dave, Karl, Ed, and Richard presenting this inventory management. Karl and his team go the extra mile—every battery is excellent, practical symposium! checked for correct voltage every month. Batteries not up to spec are taken back to the warehouse charging station. Karl and his team really are delivering ROUNDTABLE HIGHLIGHTS the difference! THE FRANCHISE ROUNDTABLE WHAT’S NEW IN IT – MARK SPRUILL focused on two topics: Mighty’s In the Saturday morning General Session, Gary Vann and Financial Performance Measurements Mark Spruill spent a few minutes sharing some of Mighty’s upcoming technology plans. The highlights were… and considerations for adding a Quick • A new version of MIC Mobile for iOS. • An EDI project to send electronic purchase orders to our Delivery service. Facilitated by Carmen suppliers. Strickland and Josh D’Agostino, • Major updates to MIC Online that will make it easier to the session began with sales and browse and order parts that are not application-speci c. • A big project to provide electronic capture of invoices Carmen Strickland Josh D’Agostino and the panel operational results for the Mighty System as a whole, as well as for the from suppliers and a self-service portal for franchisees to see invoices, statements, etc. online and on demand. Top Quartile. Key metrics such as sales, gross profit, select expenses, net profit, inventory turns and customer types were presented, along with target benchmarks for each category. Average sales in 2017 for a Mighty operation finished at $1,319,120 with the Top Quartile topping $3 Mark Spruill million at $3,140,472! TECHNOLOGY UPDATE: BATTERIES AND LUBRICANTS Thinking about adding a Quick Delivery service? During the second half of the Franchise Roundtable, results for the Quick Delivery Survey were revealed, and a panel of experts, Continuous changes in technology provide the opportunity for new products comprised of Blair Smith, Ted Neilson and Kirk Driggers, shared ideas and best practices about and services in the automotive aftermarket. John Blackburn, with East Penn how this service works for their operations. According to the survey, 23 of our 77 respondents Manufacturing, and Tim Weeda, with Warren Distribution, provided insight into are participating in a Quick Delivery service at varying levels, and all 23 are providing this option those changes that will impact the aftermarket for batteries and lubricants to existing stocking customers only. Barriers to entry, such as increased inventory, dedicated respectively. vehicles and personnel and the possibility of extended operating hours were discussed. Benefits, such as an additional sales channel, the opportunity to specifically increase undercar and Mr. Blackburn’s presentation focused on advanced energy underhood sales and guarding against competitors were also considered. This portion of the storage solutions driven by ef ciency, connectivity and session was particularly interactive with the panel, whose members offered great advice as to autonomous driving trends for transportation. He spoke how to develop a Quick Delivery service and what to closely consider before doing so. speci cally about the enhancements East Penn was making to the construction of their Enhanced Flooded Battery (EFB) and THE SALESPERSON ROUNDTABLE was hosted by Ronnie Barrassi, Tim Bowlick and Mike Absorbed Glass Mat (AGM) battery technology. By 2021, it’s Hudgins with over 200 salespeople attending. Many great sales and product discussions were expected that EFBs will be used on 19% and AGMs on 46% of new vehicles manufactured. Traditional ooded batteries shared by the group. A few are listed below: will reduce from 82% in 2016 to 35% in 2021. • Incentive suggestions for trip locations, time of year John Blackburn Similar to the battery presentation, lubricants will also be going through a number of changes to for Mighty to feature the incentives, and how many address fuel ef ciency. Mr. Weeda discussed lower viscosity grades and the introductions of SN Plus and GF-6 motor oil incentives to have during the year. requirements. These new requirements were initially driven by the new 2025 Corporate Average Fuel Economy (C.A.F.E.). This • Richard Ashley answered questions about his new standard has now been put on hold, but efforts continue by vehicle manufacturers to improve fuel ef ciency. tremendous success with fleets Mike Hudgins and Ronnie Barassi by featuring the Tim Bowlick Diesel DFS-910 machine. • Several salespeople discussed the option of a “Mighty Salesperson App” for quick info/contact on product Both presentations provided excellent information on information and sales updates. technology and the future direction of batteries and lubricants for the Mighty System. Tim Weeda This proved to be a great forum for salespeople to talk to one another in a group setting and share sales ideas, tips Richard Ashley shares his and suggestions. success with fleets —5—

2017 SALESPERSON OF THE YEAR Karl Faul: Fearless and Forearmed “Our doubts are traitors, and make us lose the good we oft might Bobby Deardorff, Karl Faul and Mike Hudgins win by fearing the attempt.” —William Shakespeare drive.” Under Warren Zinn, principal of the prestigious Warren Henry Auto Karl Faul is fearless—not careless, not pompous—but fearless, Group, Karl led the way to record sales of $1,220,000 in 2017 with annual and he attributes this noble characteristic to his father, who ran revenue of $373,000 and 10 hefty new accounts. 60 bread routes in three cities. Take battery sales—Karl’s specialty. In 2016 he sold over 1,140 and added When probing the thinking processes and work habits of our seven new battery accounts. “I educate them in our program—not a consign- Salesperson of the Year, we discover a thing Karl has for preparedness, ment—but a program of free inventory. I pay half of the initial set-up, plus as in, “forewarned is to be forearmed.” The point: being prepared for hands-on training in how to test to provide evidence of the actual condition battle dispels fear. of the battery.” “I research the potential customer’s website,” says Karl, “before I ever Add to that the sale of 6,000 gallons of bulk oil, ve new VS7® Chemical Pro- show up. I have a good idea going in as to what’s going on. I’m not ying gram set-ups, along with a load of our machines by touting their unmatched blind; I’ve done my homework. What seems to be pretty important to the quality and the advanced training we offer with each purchase…and three folks I’m about to meet? In what way does this business stand out or new brake accounts. Karl’s mantra is, “Diversify your offering!” want to stand out, and what could possibly be their problems or chal- lenges? How can our programs pay off for them? Oh…and my rule is if Essentially, his approach to professional salesmanship is virtually faultless… they’re not doing at least $200,000 in annual revenue, they might not be including a passing remark he made as we began to wrap up our interview. a good partner for the time and effort I’m going to invest.” After our nal congrats for his achievement, he seemed to drift into a mindful moment. He said, “You know, Joe, I’ll tell you how I feel. If I had to choose Then, with the game-face of a gladiator who’s positive he’ll come out on between Salesperson of the Year for me or Franchise of the Year for Juan top, Karl heads straight for the CEO, the dealer, manager or whomever is Lopez, Warren Zinn, Erik Day and Larry Zinn, I would want them to have it clearly the main person, the heavy hitter—and he doesn’t exactly mince because of who they are…and all they have done to make this possible.” words: “I’m Karl Faul with Mighty.” He extends a strong right hand. “I want to partner with you to really help you grow your business.” But we To quote Karl when he won Rookie of the Year in 2015, “My ultimate achieve- ask, ‘What happens when you’re turned down at?’ Karl’s rejoinder is, ment would be to have our ownership group on stage at the Annual Sales “No doesn’t MEAN no.” Meeting honored as Franchise of the Year.” Huh? “As far as I’m concerned,” asserts Karl, “No means NOT RIGHT NOW…that’s all.” Faul hears these words as if spoken in a foreign tongue. He thanks the party as if he were just told, “Yeah…come again, Karl,” and he leaves with a warm smile and absolute assurance that he will be seeing that person again ‘just to keep in touch,’ and he politely tells him so. “Eventually they will buy from me—sometimes as soon as a day later, sometimes in a year or more, but they will be buying something from me sometime, whether it’s parts or bulk oil or bottled water or even vending machines (all true stories). My goal is to impress my new contact with my persistence…my perseverance without offending him…with friendliness and con dence in who I represent and what services I have to offer. I want them to think, ‘This Karl fellow really wants my business.’” Question: Does all this preparation, getting psyched and “damn the torpedoes” mindset pay off? Answer: Check the top of this article; it says Salesperson of the Year. Last year saw record growth for Mighty of South Florida with their largest increase ever in revenue—an average monthly increase of 53%. From some $70,000 per month in 2016, it rose to just shy of $103,000 per month in 2017, with a total margin for the year at 46.87%. Franchise manager, Juan Lopez, attributes the sensational turn-around in sales to “team work with Mike De- Santis and Santiago Jimenez and Karl’s great leadership in our record sales Ted Neilson Presented with Mighty Leadership Award On Saturday evening, Gary Vann and previous Mighty Leadership Award recipient, Scott Accardi, recognized Ted Neilson with a special Mighty Leadership award. Ted manages the number one Mighty franchise operation located in Salt Lake City, Utah, and a thriving Jiffy Lube group of more than 60 stores. He has a family of four active children, who are everything to him. And yet, Ted willingly donates time and energy to chairing the Mighty Franchisees Association, participating in MPG, and IMPACT meetings. What’s the saying? “Need something done, give it to a busy person!” When something comes up, Ted always takes the time to listen and then carefully weighs matters before he responds. He is not afraid to speak up and express himself—just one of the many things that makes Ted such a respected leader. Our sincere thanks to Ted for his many contributions to Mighty. The standing ovation he received following the announcement underscored how much everyone appreciates his leadership! Ted Neilson with Scott Accardi —6—

2017 FRANCHISE OF THE YEAR L to R: Ken Voelker, Steve Sanner, Melissa Huffman, Jeff Bare, Scott Fraley, Joe Ritter, Ken April Jr., Delana Brown, Jay Greenfield, Jeff Buskirk, Lonnie Hinkle, Ben Clark, Mike Gardner MIGHTY OF CENTRAL INDIANA Where Employees are Associates and Customers are Guests Across Central Indiana, Indianapolis, Ft. Wayne and South Bend—“The Our Franchise of the Year made another discovery in people: Jeff Buskirk, Crossroads of America,” and on Mickey’s turf in Orlando, as well as Mighty’s 2017 Rookie of the Year from Orlando. Jeff’s management experience Florida’s Emerald Coast, and the Peanut Capital of the World, Dothan, in the new and aftermarket business goes back to the 1990s. His is a story of Alabama—in tire stores, quick lubes, new car dealerships, and eets managing new and used car dealerships including the service end, along with of vehicles, no one in automotive is asking, “Who’s Mighty?” The Mighty name A-to-Z know-how in wholesale distribution of parts. Jeff Bare concurs with Ken today is emblazoned on that huge swath of land thanks to the powerhouse Voelker, who strongly asserts that “things that get measured get done.” Says franchise of Green eld, Sanner and Bare, who rst joined the System as Mighty Jeff, “Much of our success has to do with associates like Jeff Buskirk who are of Central Indiana—and now include three other Mighty territories in their JTM numbers-driven.” Thus, the stats-and-goals-oriented Buskirk has added 40 new Group. The Indiana franchise broke the $5 million threshold in 2017, a 55% sales customers in a year’s time. increase over 2016, and their combined Mighty group did over $8.5 million in 2017. Scott Fraley and Jeff Buskirk, along with long time Mighty salesperson John Ebert, Orlando, have virtually doubled Mighty of Orlando and Mighty of How does the winning franchise Deliver the Difference? “We do not compete by Pensacola. offering the lowest possible price,” said President Steve Sanner, a businessman who holds tenaciously to time-honored ideals. “We do not get down in the gutter; Breaking the $5 Million Mark we don’t have to. We’ve raised the bar and we’re proud of it. We maintain a pro- fessional work environment. Our employees are our associates; our customers Interestingly, the tipping point in breaking the $5 million mark was Mighty’s are our guests. It’s the way we feel about each other as well as the good people lubricants program spearheaded by Jeff Bare. When Pennzoil distribution was we do business with. When you think like that, you’re bound to conduct business disrupted, Jeff, the Indianapolis team and the Mighty Home Of ce pounced! They accordingly.” responded with a program in a remarkable seven days without a blip. Playing heads-up ball, with their hand on the pulse of the market, paid off with nearly “People Make All the Difference…” $200,000 a month in oil. (April-November 2017) Sanner gets right down to why they’re doing so well. “People make all the differ- Sanner made a point of the invaluable tools his sales pros use to achieve their ence. It’s all about who you qualify and attract.” Steve has a thing about nding, developing and appreciating sales talent and strong character that often go un- successes. noticed or are taken for granted, as with superstar Scott Fraley, who has almost single-handedly doubled franchise sales in the past year in Pensacola. Regarding the videos, diagnostic surveys and advertising Scott’s innate talent for salesmanship was virtually unnoticed before being spot- materials produced ted by Steve and Chief Operating Of cer, Jeff Bare. Scott had worked quietly in by Sales and the shadows of his parents’ franchise for 20 years. He hadn’t had a raise in 10 Marketing: “In years, but nevertheless kept his stoic shoulder to the wheel as a steady pro- that arena, ducer. It didn’t take long for JTM Mighty blows franchise principals to see that this everybody away. quiet giant of a sales pro would We’re head and become a highly-valued associ- shoulders above the competition ate. “Treat him right and watch him Steve Sanner and Jay Greenfield blossom,” was our determination. with Mighty’s For Steve and Jeff, the rst order professional pieces. However, we still have the “value vs. price” challenge that of business was a hefty raise in many of our fellow franchises face that requires us to convince customers that it Scott’s pay. “He was totally turned is truly worth spending a little more for a lot more in return.” on by this expression of uncondi- Hence, the nal question: tional con dence in him. He was What about the fundamental nature of customer (guest) relations—the inevitable daily give-and-take with all the objections, reluctance and unexpected challenges inspired!” How inspired? “Today Jeff Bare that may require the wisdom of King Solomon? Steve’s reply should be copy- he visits 70 to 80 accounts per righted—it’s that good. The motto of Mighty’s winning franchise is, “We pride ourselves in satisfying inconvenient and unreasonable requests.” week with great results,” report Sanner and Bare. “This guy has accomplished so much since he received the recognition and appreciation he deserves, and he’s become so productive that we’ve hired him an assistant!” —7—

Jeff Buskirk — Rookie of the Year “Nothing But New Business” T he ad Jeff Bare placed on the “Indeed” website was very speci c: Dave Blair, Jeff Buskirk and Mike Hudgins “Looking for a Sales Representative that is a natural Rain Maker through automotive wholesale distribution in the Orlando market. Success in this You might think that the gross pro t margin is low, but keep in mind that position would be solely based on growth through new business. High-energy Jeff was doing virtually nothing but new business in 2017. Stock lifts, new salesperson should be self-motivated, and love to make new calls.” business incentives, shelving and cabinets and so forth are all expensed on all new sales/setups, thus affecting the over-all gross margin. Jeff is Well, look at that! Jeff Buskirk and his wife lived in West Virginia, and they were currently running a weighted gross pro t margin of 39.5% on all residual looking to transplant to Orlando where their children and grandchildren live. replenishment business. Jeff has 20+ years’ experience in the automotive business, managing new and Our Rookie of the Year also understands the importance of collections. used car dealerships, and serving as service advisor, service manager, and also He meets with his general manager weekly, reviews each account, runs in automotive parts wholesale distribution. This, coupled with his drive for per- updated statements and collects money like a professional should. Not sonal success, made Jeff the perfect candidate for what Jeff Bare called “our bad for a rookie! Rain Maker position in Orlando.” Jeff spent his rst 60-90 days getting acclimated to the Mighty Program though the Mighty Online University, VS7® Certi cation, and the host of other sales tools and knowledge available on the Mighty website. Jeff also attended Mighty Sales School in Atlanta and was one of the top performers in the class. Buskirk is an early riser. He has his day/week planned out with speci c action items to accomplish. He understands the Mighty Program and sells it as such, not on price, but as a Program. He has utilized the Mighty National Account “Hunting License” and has experienced great success in selling them the Mighty Program Offering. 2017 Results: $321,458 in Sales at a 35.8% Gross Pro t Margin Top Five Winner in the Mighty Cayman Islands Trip Incentive 19 New Customers 11 New Lubricant Customers 10 New Battery Customers Operational Excellence Award The “Heart and Humanity” of Mike Yokum “We had to convince Sally that Mighty was a viable business, but Then, with some optimism, franchise owner Sally had a sit-down with GM Mike Yokum – was presently mismanaged. Unfortunately, the family had viewed a Mighty veteran – and future 2014 Salesperson of the Year, Ed Greene, before renewing Mighty as a secondary interest; a necessary evil. Sally felt quite their contract. The threesome laid out ambitious plans to become one of the top fran- differently, wanted to fix what was broken, and shoot for the chises in the country. The planning session covered everything – buying product, rout- moon!” – GM Mike Yokum, on revitalizing the Mighty division of ing, improving gross margins, targeting accounts for upgrades and trolling for the bigger Thomas Tire sh in new customers. Aggressive goals were needed to move them up the charts as The word excellence is often over-used. To be hard-nosed one of the major players in the Mighty organization. about it, excellence means that the common, ordinary standard has been surpassed. Excellence indicates “EXPLOITING WHAT WE ALREADY HAD…” greatness, brilliance and pre-eminence. Those are the criteria required to earn Mighty’s prestigious new award for Operational Like a team before the big game, with their hands overlapping in a tight circle, these Excellence. three professionals made a passionate commitment to grow their business and increase In March of 2014, Mighty of Central North Carolina was up for gross pro t from a weak 31%. It was clear that operational excellence was the key and their 10 year renewal and it was a dilemma for Sally Thomas and that weight fell upon Mike Yokum. Mike pointed out that Thomas Tire’s Mighty opera- her brother Bryan, considering that the family’s franchise had tion was not using the Mighty Program at all; they were competing on price, when what been treated like Dickens’ Oliver Twist – the orphan born in a the franchise needed was to raise prices. Additionally, no attention was being paid to London workhouse. “Our Mighty division,” opined Sally, “had not the unique sales and marketing power of Performance Watch, Pro tWatch® and TRIM— received much love or leadership over the last ten years by the premium tools of professional consultants. Mike: “I asked Sally for a year or so to turn previous leadership; the business had to fend for itself. My father things around by exploiting what we already had in our possession. She agreed.” Mike’s had seen the wisdom in Thomas Tire being vertically integrated, demeanor sent the message, “I’ve got this.” The launch sequence was activated. The dumped a lot of money into it, but had not assembled the right franchise unleashed their two business consultants, Yokum and Greene, and thus the team.” Each business decision sank them deeper. Sally’s two long-awaited renaissance began to emerge. other brothers preferred a graceful exit for what was becoming an operational catastrophe. What actually changed? “It was a fresh realization of how exceptional Mighty is and what exclusive services Mighty has to offer the industry.” Mike argued that if a company Mike Yokum with Carmen Strickland and Lee Vick actually hired business consultants to turbo-charge a business, the pros would employ the programs that we are already professionally trained to execute. Not long ago, he approached a substantial potential customer with a recommendation to apply the science and logic of Mighty’s Pro tWatch. As the stats were revealed, the gentleman exclaimed, “Mike! THIS IS PERFECT! I was ready to hire a consulting rm to do what you’ve just shown me! LET’S DO THIS!” Mike held up his hand: “Wait! Wait! I‘m not nished. Mighty also carries a full line of OEM-quality parts.” “YOU SUPPLY PARTS, TOO?!!!” The customer discovered far more than what he was looking for, but so did Mighty of Central North Carolina when they realized that this weaponry was there all the while. “I AM BEYOND GRATEFUL…” Sally rattled off a list of impressive accomplishments attributed to Mike. “In 2017 alone, he headed up and oversaw the addition of the oil program to our operation, helped host the rst IMPACT meeting and won second place for his Best Idea presentation. He dealt with multiple vehicle purchases, oversaw a major clean-up of dead/slow stock at our internal retail stores, reviewed inventory performance and purchased essential new product, did a complete overhaul of our brake program and consistently hit payroll per- centage goals. And, yeah, Mike is the guy behind our achieving Summit Club status.” Sally, re ecting on how the Thomas Tire/Mighty franchise family business could have ended, added this: “I am beyond grateful to have Mike on my team. His diligence and drive are what helps him achieve our goals, but his heart and his humanity is what sets him apart.” —8—

Ed Greene, Sally Thomas, Mike Yokum, Greg Hough, Brandon Fleming, Alex Cotta, Ted Neilson, Mike and Rosie DeLano, Jeff and Ryan Pohlman, CJ Hoien, and Sandy Grandstaff SUMMIT CLUB A successful Mighty Franchise is about more than just sales. It requires business best practices implemented by the entire team WINNERS! across the organization. It is about doing many things right, not just one thing. The Mighty Summit Club, designed to reward the most well-rounded Mighty operations, focuses on Sales Growth, Participation in Sales & Marketing Programs, Product Diversity, Image and Financial Performance. In 2017, there were 150 available points and in order to achieve this prestigious designation, an operation had to earn a minimum of 110. In the Summit Club’s inaugural year, we had eight winners. Congratulations! MIGHTY OF MARYLAND MIGHTY AUTO PARTS OF NORTHERN UTAH to achieve Summit Club! With a great sales year contributing heavily to the 111 points earned, Mighty of Southeast Texas made it. Based Randall Simpson, Sandy Grandstaff and the Mighty of Our number one overall franchise by sales was determined to in Beaumont, Texas, Mike works the business daily, growing sales Maryland Team finished with 122 points to lead our Summit earn Summit Club. Owned by Kirk Umphrey and managed by year after year in a territory already well above average in market Club winners. Owned by Randall and managed by Sandy, Ted Neilson, Mighty of Northern Utah achieved 113 points to penetration. We look forward to seeing Mike and Rosie in San Mighty of Maryland, based in Middletown, is a Top Ten become a Summit Club winner. This operation, based in Salt Francisco/Napa Valley to celebrate! Franchise in sales. The operation is affiliated with a larger Lake City, Utah, is affiliated with Lube Management, a multi- operation that owns car wash, quick lube, and repair center location Jiffy Lube franchise. Ted is a tremendous supporter MIGHTY AUTO PARTS OF ATLANTA locations. Beyond running his operation, Sandy is involved of the Mighty System, serving as Chairman of the Franchisees in supporting the entire system, serving on the Marketing Association and as a member of the Marketing & Product Alex Cotta, General Manager, and the MAP-A Team fought to the & Product Group (MPG). Congratulations to our number one Group. The operation also won the Grand Cayman incentive trip end to achieve 111 points. As manager of this Mighty company overall Summit Club winner! in 2017, and Ted was recognized with our Leadership Award for operation, Alex and the team had a great year growing sales and his outstanding commitment to Mighty. profits. Not only did the organization achieve Summit Club, but it also MIGHTY NORTHWEST was a Grand Cayman incentive winner. A wonderful 2017 for MAP-A! MIGHTY AUTO PARTS OF CENTRAL Bud Guyette, CJ Hoien and the Mighty Northwest Team NORTH CAROLINA MIGHTY AUTO PARTS OF CENTRAL NEW JERSEY finished with 116 points. Not only did the operation earn this prestigious recognition, but they did so in their first Sally Thomas, Mike Yokum, Ed Greene and the MAP of Central The father and son duo of Greg and Gary Hough and the Central New year as a Mighty Franchise! Mighty Northwest, based in North Carolina Team earned 111 points, putting them over the Jersey Team squeaked in with 110 points. Mighty of Central New Seattle, Washington, is owned by Pierre Auto Centers, a top for Summit Club. Located in Asheboro, North Carolina, Man- Jersey is aligned with Hough Petroleum, a lubricants distributor, and multi-location new car dealership. Bud Guyette, Director ager Mike Yokum delivered fine results to earn this distinction. Greg manages the day-to-day aspects of the Mighty operation. Greg of Fixed Operations for the dealership, CJ Hoien, Mighty In addition, Mike won the Operational Excellence Award for was adamant about achieving Summit Club, and worked extremely General Manager, and the team had a great first year, also 2017! The Mighty operation is affiliated with J.P. Thomas & Co., diligently to make sure he earned every possible point to qualify. winning the Grand Cayman incentive. a multi-location tire dealer owned by Sally. Also in 2017, Sally It was great to see his team achieve this distinction in only their hosted the inaugural IMPACT best practices meeting for twelve second full year as a Mighty franchise. MIGHTY AUTO PARTS – HAMILTON Mighty franchises, and was elected as a FRANAD Director. A busy and successful 2017 for this operation! Each of our winners received a plaque and recognition during our The father and son duo of Jeff and Ryan Pohlman and the Awards Banquet, and we will be celebrating our Summit Club Award Mighty Auto Parts – Hamilton Team finished the year with MIGHTY OF SOUTHEAST TEXAS Winners during our trip in June to San Francisco and Napa Valley! 116 points. Based in Hamilton, Ohio, the Mighty operation is affiliated with Jeff Pohlman Tire & Auto Service, a multi- Mike and Rosie DeLano missed the Grand Cayman incentive location tire dealer. A nice year for this team as they ap- trip by only a few thousand dollars, so they were determined proach their twentieth anniversary as a Mighty franchise. NEW FRANCHISE PARTNERS Mighty LTP of Minnesota, Iowa, Wisconsin & Wisconsin GB In one of the largest multiple franchise transactions in the Mighty System, Lube-Tech & Partners (LTP) acquired four franchise territories in the past year. Founded in 2016, LTP is the combination of three prominent Midwestern oil and Mighty of Eastern Pennsylvania lubricant companies based in Sean Shanahan, Gary Falcone and Mark Rhee Established in 2014, this franchise Minneapolis, Des Moines and recently acquired an adjacent ter- ritory which includes most of the Milwaukee. Excited about the Philadelphia market as an expan- sion move. Af liated with Mid-Atlan- synergies that offering Mighty tic Lubes, a 19-location Jiffy Lube group, Franchisee Mark Rhee and products and programs can Designated Manager Gary Falcone inherited several long-standing bring to their hundreds of Mighty customers as a result of this acquisition and are excited about lubricant customers, LTP is additional growth opportunities. integrating Mighty into their Sarah Bennett, Barry Teagle, Mike Hannon, Eric Jackson, sales and delivery processes. Chris Bame and Ken Voelker Now under the direction of LTP partner, Andrew Haag, are former Mighty Salesperson of the Year, Jim May, and former Franchisee of the Year and Franchise Association Chairman, Dave Berlick. Elite Auto Parts Mighty of Savannah Mighty’s new partner in This new franchise is southeastern Georgia is based in Alexandria, Vaden Distribution, LLC, Virginia, and af liated which is af liated with Vaden with STC Management, Automotive, a 10-location another successful new car dealership group Jiffy Lube operator based in Savannah. Acquiring with 18 locations in the franchise territory most of Maryland and northern us remember being formerly Virginia. After acquiring associated with Savannah a retiring franchisee’s Ken Voelker, Ken Getsinger, Josh D’Agostino, Brad Turnelle, Tire, this new franchise is territory in August Chris Burns, Barry Teagle and Glenn Sanders 2017, this franchise being supervised by Dawn West Beaver, Barry Teagle, Jane Thacher, Dawn Newsome, Newsome, Fixed Operations Josh D’Agostino, Hal Anderson and Ken Voelker began supplying their quick lube locations with Mighty product and has enjoyed Director, at Vaden. Her immediate success. They are now looking forward to growing customers Mighty Team includes long-time manager, Wayne Ehret. Supplying the Vaden throughout their territory. STC Management is the ninth Mighty franchise dealerships along with the customers Wayne and his team have cultivated over associated with a large Jiffy Lube group. the years is a terri c integration for both Vaden and Mighty. —9—

AwaNrdigsht The González family: Marly, Rodrigo Emilio, Rodrigo and Mirelle Rob Sinanan celebrates winning the Daniel Simpson and Michael Day of Mighty of Virginia $5,000 Salesperson Incentive prize recieve a 10 Year Franchise Award Zach Josett of Western Pro Mighty Woody and Nici Hanks John Blackburn of East Penn receives an an is Service Representative of the Year award of appreciation for being a Diamond Sponsor of Mighty’s event Krystin and Joel O’Neal applaud the “Three Waiters” Mike and Elizabeth Yokum, Sally Thomas, Eric Arnold, Paul Harrington and Ford Smith, Kelly Belz and Ed Looney Fritz Marvin DeLano, Rosie and Michael DeLano, Susan and Ed Greene Paul Kirstein from Texas Enterprises Barry Teagle, Dawn Newsome and Gary Schuler $2,500 Salesperson Incentive Prize Roger and Lisa Oldenburg with is won by Stephen Delbridge Goldie and Russell Burnett 10 Year Franchise Award to Ted Neilson Bobby Deardorff captures New of Mighty Auto Parts of Northern Utah Business Award SS Delana Brown accepts Ricky Shelley’s New Business NSR Award Ron Chitwood, Ken Voelker Mike Hudgins and Hector Ruiz and Ron Kanning Gary Schuler and Corey Akins with Michael and Abby Harrington The entertainment of the night came as a total surprise when our “head waiter” Santiago Jiminez, Mike DeSantis, Karl and Greg and Lauren Hough “Best Dressed” - Mark Harrington with the girth and tenor voice of Pavarotti let loose on Puccini’s aria, Nessun Dorma Kristine Faul, Denise and Juan Lopez (None Shall Sleep), followed by another two tenor “waiters” who roamed the room —10— competing for applause with arias and Broadway hits. Unforgettable!

The Driggers Family: Kirk Jr., Karla, Debbie and Kirk Sr. New Franchisee Andrew Haag with TOP TEN FRANCHISES Ford Smith and Ed Looney IN 2017 Burnett bookended by Accardi and Scibetta Matthew and Lezlie Fry Mighty Auto Parts of Northern Utah Will Enfinger and Adam Phillips Kirk Umphrey, Ted Neilson Jesse Moore and Ron Kanning Salt Lake City, UT $8,767,242 Jessica Burnett, Stephen and Jodi Borden, Skyler Phillips Sally Thomas, Trevor and Blair Smith and Stephen Oldenburg Parts and Service, Inc. Scott Crozier Tim and Troyanne Horton, Tanya and Richard Ashley Sharman Lemons, Shannon Lemons Olla, LA Tamara and Rob Sinanan and Randy Birmingham $5,412,735 Dave and Deanna Blair The $2,500 Franchise prize goes to MDS of Mighty Auto Parts Central Indiana with Scott Ellis Western Maryland Jay Greenfield, Steve Sanner, Jeff Bare Kathleen and Brad Bradshaw Indianapolis, IN $5,145,027 Mighty of Maryland Randall Simpson, Sandy Grandstaff Middletown, MD $3,748,408 Mighty of the Mid-Atlantic Bob Falter, John Spaar Forest Hill, MD $3,465,213 Mighty of New Mexico Keith Mortensen, Richard Jones, Robert Mortensen, Mike Hostetler Albuquerque, NM $3,422,460 J. Harrington Corporation John Harrington, Michael Harrington Petersburg, MI $3,381,941 Hudson Valley Automotive Parts, Inc. Scott Accardi Hawthorne, NY $3,292,451 Mighty Pacific Jason Hannah, Jennifer Hannah, Gary Schuler, Corey Akins Vancouver, WA $3,138,766 MDS of Middle Tennessee Russell Burnett, Goldie Burnett, Aaron Burnett, Jessica Burnett Lebanon, TN $3,090,833 Bill and Ruthie Harrell Carmen Strickland, Tracy Buttera and Kate Ross Diana Sehenuk, Marie Thomas, Heather Beaumont, MDS of Middle Tennessee wins the $5,000 Grand Prize Gary and Gayle Vann with their grandchildren Jacob, Abby, Susan Dunson and Gail Meyer in the Franchise trade show drawing Eva, Aidan, Emilie and Grace Burnett —11—

TSSURHPAPOLDIWEER The 2018 Mighty Supplier Trade Show lived up to the adage, “Everything’s bigger in Texas!” This year’s show provided the Mighty System with a chance to reacquaint itself with many longtime Mighty preferred suppliers, as well as meet new suppliers and learn about their programs. Of the 61 suppliers exhibiting, a record number of 12 new suppliers exhibited for the rst time! Helping Mighty franchises Deliver the Difference, this show provided them with the opportunity to take advantage of special pricing on orders placed during the show, a rst for Mighty! Other exciting highlights from the Trade Show included: • 14 Supplier Clinics that were conducted in a classroom located on the show oor. Many of the clinics were standing room only! • Adding to the excitement, Mighty sponsored cash and prize drawings that totaled $17,500. • The Mighty System took advantage of Supplier Trade Show specials by placing orders totaling more than $1.7M! • This show saw a return of the Trio of Bacon Station! An event like the 2018 Mighty Supplier Trade Show would not be successful without the support of its sponsors. A very special thanks to the A.L. Group, AMC, CAP, CEC, CPS, East Penn, EPPCO, Gonher, Group 31, Phillips 66, MH Purolator, Technical Chemical (TCC), Warren Distribution and Wegmann for their support. —12—