Once there was a COO by the name of Wendle Province. He decided to built new satelite stores to gain market share, deliver parts with these stores and compete with Chief Auto. He did not realize that doing so would also take market share from surrounding super center stores. Needless to say the stores were not profitable. Not to many years later and Wendle no longer with PBY Parts USA stores were sold to PBY biggest competitor. AutoZone. Not only where they sold to Autozone, Autozone got these stores with built in customers.
Now PBY has another bright individual O'Dell. He has started the 2nd phase of disaster. Opening satelite service centers. Why? What is the purpose? Again taking market share from the super centers. If he thinks that PBY is going to be profitable in these stores he has another thing coming. I have visited these stores and I have to say they are in terrible locations. If making profit and gaining market share is what is all about, darn it, fix what is already in place first. Pby has some pretty good super center locations, however, the reason they are not makeing money is because of horrible field management. Look at the west coast for example, you have people like Chidsey as a VP who could not even be a district manager at one time. And then look further at the AD's that are in place. What in the world are they doing to fix the problems.
When there is no leadership, no expectations, no knowledge, no standards and no caring the end results will be worst than before.
O'Dell has put some plans together to get this very large ship going in the right direction. But it takes the right people to right this ship. Without the right people to execute his plan the ship will continue to be on auto pilot. Just ask Joe Cirelli. There are so many people at PBY that are always under the radar. And that is exactly where they want to be. No detection no accountability.
You said it all Dan. BOD, upper management must make a decision of getting rid of non-producing field management. I think that the statement still stands "Either you do your job or you won't have a job".
As shareholders, would we not be better off in going to the Board and telling them to pay Joe Cirelli et al his 500k/yr salary to sit at home and NOT venture into work. At least the damage would then be contained.
As I mentioned on my post earlier there are people that are able to stay under the radar and never be held accountable. Year after year people like Joe Cirelli are able to somehow go un-noticed. Even when Joe was VP of operations he went un-noticed. It is no wonder that PBY has been struggling since. PBY continues to promote or hire under qualified personnel. Just look at some the Regional VP's, Area Managers as well as Executives. I can't imagine that because a person has been with the company for serveral or many years that they should be promoted to a position that they are not qualified to do. Sure they may know the business, but are they the type of person to roll up their sleeves and really go to work and accomplish the companies goals and expectations. I think not. "Continue doing what you are doing-expect the same results"
I have posted almost identical staements for years. A 5% increase in exisiting store sales would give about $200 million in extra sales and O'dell is going to do it by opening another 150+ cost/expense centers.....I did say expense not profit centers. The $200 million if from existing stores would drop dramatically to the bottom line. No company has any business opening new stores unless they know how to get sales increases first. That's Business 101.......if COB doesn't deal with O'Dell and his misfits soon......he will be the next to go.......I was hired for years to go from company to company in many different industries to turn them around and fix them. I never failed to get above average sales increases by hiring the right people, setting the right expectations, dealing with poor performers and making customer service #1. The PBY by my house has 10 bays and never more than 1-3 filled at any one time. The local O"reilly just opened another store to handle the overflow from their store and actually opened it less than 1/2 mile from the other store......The last 2 times I needed tires, PBY had the best price but both times I had to drive to the store as the phones were never even answered........true story. DaninFW