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I've heard some shop owners say the only way they can effectively control their operation is to maintain a shop of small or modest size. For some, the thought of expansion equates to a loss of quality control. I suppose that thought could contain a nugget of truth, depending on various factors. But it was one belief Glen Burnie Transmissions in Glen
Burnie, Maryland, never subscribed to. Glen Burnie is an excellent example of an operation that has managed sustained growth over the years, and still kept intact the highest standards of quality.
In a recent interview with Glen Burnie's owner, Marvin Keyser, and his son-in-law and General Manager, Mark
Schwartzman, I learned a lot about how that growth came to be. Marvin Keyser is the prototype for the old-school transmission shop owner. A self-described "kid mechanic" who was reared in nearby Baltimore, he developed an early passion for turning wrenches. He enlisted in the U.S. Navy just after World War II ended, and was trained as a diesel mechanic. After three years inside the engine room of a Navy tug, he went to work as a mechanic at a Baltimore Chrysler dealership. By virtue of being "the low man in the shop," he was assigned the task of learning all about the developing automatic transmissions of the early 1950s. Marvin saw the opportunity as a challenge, and met it head-on. It
wasn' t long before he realized the potential that could be found in repairing automatic transmissions, and he knew what it was he wanted to do with his life.
In May of 1961, Marvin Keyser formed a partnership with two brothers, Harry and Louis
Deitsch, in ownership of a gas station and transmission shop. When they opened for business in December of that year, four men kept the shop' s six lifts occupied with transmission work, and the business thrived. Four years later, two lifts and six mechanics had to be added to the still-growing operation.
The original shop occupied a corner location on a busy thoroughfare in Glen
Burnie, which proved to be even more fortuitous as years passed. Expansion of the facility continued along with its growing customer base, and by 1988, included a center for trucks and larger vehicles. In 1992, Harry and Louis Deitsch retired, leaving Marvin Keyser as the sole operator of the business.
Currently, approximately 45 vehicles a day pass through the 24 bays at Glen
Burnie, tended to by a force of over 50 employees. Of this number, 14 are installers and 16 are builders. The workforce at Glen Burnie is further comprised of three service advisors, three foremen, three drivers, two maintenance men, an office staff of three, and a parts department that requires four people to maintain. Essentially, the technical operation is divided into three sub-shops, one of which is a six-bay truck facility, complete with a 32-ton lift. Overall, the complete operation is reported to be the largest independent transmission repair shop under one roof in the United States.
So, how did all this expansion happen? How does it all hold together? A significant reason for the growth, Keyser said, was a service he implemented within the business not long after the shop opened. Glen Burnie is close to Baltimore, and only 35 miles from Washington, D.C. The metropolitan area it forms consists of more than six million people--a sizeable market by any estimation. In the early 1960s, Marvin said, the D.C. area was a virtually untapped market for automatic transmission repair. Opening a second shop there was seen as cost-prohibitive ... but still, the possibilities could not be ignored. So he did the next-best thing. Marvin Keyser began a towing operation that would pick up the cars of customers at their work or home, take them to the shop for repair, then return them to the customer. It was a market-niche that proved very popular, and soon expanded to include a developing fleet-trade as well. The practice continues to this day, though it now requires two additional multi-car carriers, along with the work of three full time drivers, to meet the demand.
But it takes more than a hook to build such an enterprise. From the beginning, Glen Burnie was a shop that offered honest, high-quality work, good customer care, and something that was different for the time: up-front pricing. From the first day the shop was opened until the present, the cost of rebuilding specific transmission types has been published, and displayed for every customer to see. Originally it was an effort to assure every customer that prices were the same for everyone, with no manipulations. Its use, though, may have created additional benefit.
This may have been the start of a customer-education effort that has only grown stronger over the years. A well designed, professionally produced brochure gives customers answers to many common questions, as well as provide advice and information on the topic of transmission repair.
The published price list, with costs broken down into domestic and import categories of rear-wheel drive, front-wheel drive, 4X4s and
AWD--all less the cost of torque converters and hard parts--has expanded to include three levels of warranty. The first is the ATRA Golden Rule warranty; one year or 12,000 miles. The second is their "Gold Seal Transmissions" warranty; two years, or 24,000 miles. The third is the "Platinum Transmission" warranty, with coverage for three years, or 50,000 miles. Of these, Marvin said, approximately 25% of his customers opt for the extended warranties. Of these, 80% select the Gold Seal warranty, and the remaining 20% select the Platinum level of protection.
Obviously, the price differential between levels must be reasonably profitable for the business; made possible only by the quality that goes into the rebuild. "Everyone receives the same high-quality rebuild, regardless of warranty," said Marvin, dismissing any notion that anything would be to the contrary. The levels of warranty protection is one way of competing with expanding warranties now being offered by manufacturers, and is something that Marvin feels must be offered by independent shops to stay competitive. In any event, the program works well for Glen
Burnie, and provides their customers with the assurance they often need.
Another method of educating the customer while providing them additional assurance is through an Internet web site. Designed and implemented several years ago by Marvin's daughter, Karen, the site (www.gbt-online.com), is a great example of melding new technology with an old-world "feel." The site is quick to load, easy to negotiate, and provides answers and information about transmission repair that are sure to address the questions many consumers will have.
The site also tells the consumer that Glen Burnie has been around for a long time--nearly 40 years--and is a family owned and operated business. It captures the best of advertising concepts: experience, family investment, continuity, and reliability ... all wrapped in a package that says, "we understand evolving technology and are comfortable using it." More importantly, the site works. It is "hit" frequently, and generates an average of ten e-mail inquiries a week from around the world; many of them technical inquiries from other shops.
According to Mark and Marvin, it is important during the education effort to provide a variety of repair choices from which the customer can choose. They estimate that an increasing number of customers--now believed to be between 15 and 20%--are women, who traditionally have not been involved in automotive repair decisions. They also have developed an expectation of being "taken advantage of," so they tend to spend more time cautiously selecting their repair provider. All of which takes us to another highly effective aspect of Glen Burnie's operation.
Karen Keyser Schwartzman, in her role as company Vice President, has responsibility for advertising. She not only creates the ads, she produces them. Radio listeners hear her talk about the benefit of choosing Glen Burnie as their transmission repair shop, and provide seasonal driving tips. Again, the link to a family-owned and operated business is very beneficial; but this time it provides an additional connection to that growing segment of the market: women.
An effective advertising effort is important, but it is only part of an overall business plan. A good business needs direction and guidance, not just the ability to produce a good product. That's where Mark Schwartzman shines. Mark obtained his college education with an eye towards business. For 12 years he applied that knowledge as a stockbroker, before joining the operation at Glen Burnie in 1997. Mark focuses his effort on customer service, employee management, and another particularly important, but difficult task: forecasting the future business climate, and orienting their operation to meet that challenge.
If the top management at Glen Burnie sets the pace and direction for the company, then its employees surely give it the energy and vitality it needs to move. As one might suspect in such an enterprise, employees of the company--as in all successful companies--fully support the operation just as the operation supports them. Employees are well paid, and receive a package of excellent benefits; a number of them tied to their longevity. Longevity is a definite consideration at Glen
Burnie, which in and of itself speaks to the heart of the business. Two employees have over 30 years of service with the company. Five have over 20 years, and another 18 have been employed for more than 10 years.
The "management team" is comprised of people who have all started with the company at entry-level positions, and have demonstrated their ability. Likewise the foremen, who directly supervise each of the three shops, the parts department, and sales. Once a week the supervisors meet to discuss issues that affect the business operation. Once a month, everyone comes together for a similar meeting. What emerges from these exchanges is a way to do things better; to identify problems and solutions, and to foster a sense of camaraderie. The positive interaction is demonstrated by the high morale in the workplace, and the competitive nature among the "teams."
At the beginning of this piece I left open the unasked question of how a business could grow to such a size, and still maintain the standards of quality it embodied at the onset. From what Glen Burnie Transmissions demonstrates, the answer must be found in a few different areas. I think it starts at the top, with Marvin Keyser, who has an unwavering commitment to provide a quality product along with excellent customer service, and who instills that value in those who work along with him. Someone who understands the value of good employees and their contribution, and who has the willingness to help cultivate their potential.
Without a doubt, a major contribution comes from Mark Schwartzman, who as General Manager not only has the vision to see what lies down the road, but who has the business acumen to orchestrate the appropriate response. A good part of that response can be found in the effort of Karen Keyser
Schwartzman, whose skill in advertising and customer relations helps to provide an ever-expanding market.
Last, but never least, are the employees themselves who rise to the challenge, and put it all in motion. It's their effort, as well, that plays a major part in turning ideals and vision into reality.
In short, continued success for such a large shop requires the effort of everyone involved. Innovation, vision, dedication to ideals, and hard work are the elements of success found in many a good enterprise. As Glen Burnie Transmissions approaches its 40th anniversary this December, it' s apparent those elements are functioning well. And it's nice to see how well they can work in a large shop, as well as those that may be a bit smaller.
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