I think we should ditch Odell and put Mr. Leonard in, we seem to do better without anyone really running the place. If we are on autopilot we consume less money and make more. The sad fact is that our service operations are hurting badly right now due to two things. One is that we are not providing the best service we can in a timely manner and thanking the customer for their business. We ignore them when they call us and put them on hold, we tell them it is first come first serve when we do talk to them and hold their vehicle hostage for hours for an oil change. We over charge them for what they get done, the dealer may be cheaper in some cases and alot of customers are seeing this. Last of all we don't fix it right and we have to do it over again causing inconvience to the customer and probably don't even apologize for them having to come back. Two is the slant from the employee side and what is being asked of them. We told them to roll out drive up service but did not give them any extra people to manage the process. We now have one less person for the phones as they are outside. We still don't know how to handle the process of having people in line inside and outside and who comes first and second, this leads to having the vehicle longer. We have given up one bay to be available for drive up service at all times which makes us less efficient. Lastly we have given our talent either no raise or a token for their hard work. Add to that the lousy benefits and their costs to keep up to date with ASE and tools and top it off with being less busy and them losing money and you have less than stellar performance from unhappy techs. We need someone in charge who knows all this already and doesn't need to take a year to figure it out and then run away from the task at hand.
There are some here that believe if the dividend is cut it would raise a red flag. Meaning something is wrong that doesn't meet the eye. I for one would trade my 3% div for a better share price. If the customer has good service from well trained and well staffed store; where the prices are done right the first time at a competitive price you have made a loyal customer. In this environment you NEED REPEAT BUSINESS to survive. If you divided the dividend by the amount of stores it would amount to about $24,000 per store per year. Probably not enough to create the service needed but it would be a start. Are you listening 5th floor?
Martha you don't need to comment we already know how you feel.
Thanks for the article. I've always wanted PBY to return to its former years. Sort of a Nostalgia thing. Timing is wrong for a turn around at PBY or for that matter many other companies because of the troubled times that are here looking to only get worse.
If PBY was debt free and didn't increase its cost of leasing, I believe it could survive. It bares repeating it can install the parts it sells, people won't be trading their cars as in the past, AZO, AAP,SAH and others don't install or repair.
Not to long ago some on this board talked about the auto bays at PBY losing money due to the fact people traded their cars often. Of course times are changing. PBY stands to increase its repair business from this time forward.
I do believe this down turn will be worse and longer than many think in the economy. Will there be inflation and deflation in this country at the same time? With the FED inflating the money supply, trading good paper for bad (cdo's etc), war, social programs etc. I believe the U.S. will have the worst of all scenarios. Inflation and deflation at the same time but in different asset classes. This doesn't sound good for those working in the U.S. I'll paste in part of a news letter from the Daily Reckoning I received last week.
"Since the end of the 19th century, Americans have earned more than any other group. But at today’s dollar/euro exchange rate, many nations are already much richer than Americans. The average American earned about $38,000 last year. But the average person in Switzerland earned $64,000. In Denmark, the average salary was $62,000. In Norway, Luxembourg and Germany all had average salaries around $60,000. The Belgians earned an average of $47,000. And the French...yes, dear reader...the frogs are now richer than Americans. The average Frenchman earns $42,000 per year. How’s that for divine comedy? How’s that for taking the starch out of the flag? In the measure that really counts – money – the French are ahead of Americans by a substantial margin."
Hey Martha did you read that great article that Short shared with us? Hey I'll take north of $15 a share for PBY. Sure sounds a long way from $6 or 8 Martha! We think and you thunk. So... What da ya thunk martha?
Good article, likeliest outcome of the change at the top. Chairman of board taking a large stake is telling, as is the hiring of a CFO well schooled in selling out. Buying shares now seems to be the only way I can profit from time spent toiling in this salt mine.