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Elite Worldwide Inc.

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Blog Entries posted by Elite Worldwide Inc.

  1. Elite Worldwide Inc.
    By Bob Cooper
    There was a time in our industry when shop owners were the only ones who knew the cost of their parts. Additionally, the amount they charged for their repairs and services was typically not public knowledge. If customers wanted to know how much it would cost to perform a specific repair, they had limited options; they would have to either call for an estimate, or visit a repair facility. The service advisor would then page through a catalog, find the price, and then share that price with the customer. As we all know, times have changed, and after decades of confidentiality in pricing, technology has now done more than just change how we diagnose and fix automobiles; it’s actually made pricing transparent. The days of holding your prices close to your chest are not only gone, but if you continue to follow that age-old policy, you’ll more than likely struggle in the coming years.
    As we all know, the web has dramatically changed how you operate your business. It’s changed how you market, how you communicate with your customers, how you order parts, and how you diagnose and fix automobiles. Yet the one thing most repair shop owners are reluctant to accept is that unlike in the past, pricing on every conceivable repair and service is now available within moments online. Now we all know that those prices found online can be as incorrect as often as they are correct, but the reality is this: as we move forward, more people are going to be turning to the web, not just for finding the right repair facility, but for a range in pricing as well.  It’s currently happening in every other industry, so there is no reason to believe that it won’t become even more commonplace in our industry as well. Here are the things I am going to encourage you to consider…
    First of all, you should accept the fact that an increasing number of your first-time visitors will have either already searched the web for a range in pricing, or they will do so within minutes after you provide them with an estimate. In many cases, they will do their price comparisons with their Smartphones, and they’ll do it while they are still at your facility.
    This brings me to the second point that I am going to hope you consider, which I refer to as integrity in pricing. With the ease of access that consumers now have to pricing information, in the coming years the top shops will be competitive in pricing, and they will be proud of the value delivered. Now before I go any further, I am not suggesting that a shop can’t charge more than its competitors do, but if the prices they charge are viewed as out of line with other well run facilities, there is no question: they’ll lose their customers, and their reputation, both at the same time. The proof is in every other industry, because history has shown us that no matter how good the hotel, airline or restaurant may be, if their customers don’t feel that the pricing is comparable to similar service providers, those companies never survive. 
    So here are my recommendations for those of you who want to grow more profitable, successful businesses in the coming years. Start doing what your potential customers are already doing, and survey your legitimate competitors. I’m referring to facilities that offer services and benefits that are comparable to yours. Secondly, ensure you are competitive with your prices. This doesn’t mean you can’t charge more, but you have to be comparable, and you have to believe in the value delivered. 
    Finally, I am not suggesting that you should quickly provide a price to every price shopper, or that you should provide a price before you have built value in the service. What I am suggesting is that you need to embrace the fact that your customers are no different than you and me. They have access to pricing info 24 hours a day, 7 days a week, and they not only expect transparency, but they demand it. There is no question: transparency in pricing is now a mandate, not an option, for every shop owner, worldwide.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers one-on-one coaching from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
  2. Elite Worldwide Inc.
    There are a number of changes that are occurring in our industry, and there is no question, some of them will have a profound, long-term impact. To name just two, automobiles are being built better, and as we all know, service intervals are constantly being extended by the manufacturers. Although this is all good for consumers, better-built vehicles means they’ll need fewer repairs, and extended service intervals means you’ll be seeing your existing customers less frequently in the coming years. The way most shop owners are dealing with this evolution is by trying to convince all of their customers that they need to bring their vehicles in more frequently than the manufacturer recommends. They tell them that their oil needs to be changed more frequently, and that it’s a good policy to have their vehicles inspected every 3,000-5,000 miles. Although I agree with the reasoning, these shop owners are fighting an uphill battle since one of the many reasons people buy new vehicles is because they really like the idea of extended service intervals. So rather than trying to fight this trend, as your competitors do, I encourage you to understand it, and rather than trying to sell each and every customer on the value of coming in more frequently, I encourage you to take a different approach.
    First of all, as in any business, you should explore every opportunity to provide additional services to your customers. They already trust you and your recommendations, so services such as door ding removals, tire installations, glass repair services, cabin air duct cleaning services, and detailing services are good examples of other services you can offer. Not only will services that enhance vehicle appearance or customer comfort put smiles on the faces of your customers, but at the same time these services will increase your ARO, which will help offset the fewer number of times you’ll see your customers throughout the year.

    The second thing you will need to do is ensure that your service advisors are very well trained. Any services that are not authorized during a visit will more than likely be lost sales, because it may be six months or longer before you see that particular customer again. By then, your service recommendations will either be forgotten, viewed as unimportant by the customer, or if they experienced a subsequent failure, they may very well have it repaired somewhere else. Worse yet, if it’s a safety item that you discover, and if it’s not repaired during their initial visit, the customer will be at an even greater risk. There is no question that the age-old expression, “We’ll take care of that the next time you’re in” is going to vanish from our industry.
    Lastly, with the understanding that you will be seeing the majority of your customers less frequently as time goes on, in order to keep your service bays filled you will need to ensure that you have a well-constructed marketing plan in place that will bring in the right kind of customers. To stay ahead of your competitors you need to invest at least 50% of your advertising budget into non-traditional advertising programs, and you should allocate at least half of your non-traditional advertising budget towards programs that are directed to what I refer to as the “emerging market”; the Y Gens and Millennials . These are the people that were born between 1980 and 2004, and there is no doubt in my mind that they are the future of your business.
    In summary, I encourage you to avoid fighting the evolution of automobiles or trying to sell your customers on a service schedule that they have little or no interest in buying. Instead, look for other ways you can help them when you do see them, by providing additional services. If the services you offer are cosmetic in nature, or if they provide added comfort to the customer in any way, all the better. You will need to have talented, well-trained advisors, you’ll need well-constructed programs in place that will keep your name in front of your customers, and there is no doubt,  you’ll need to have a marketing plan in place that will bring in even more… of the right kind of customers.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. To learn more about Elite, visit www.EliteWorldwide.com.
  3. Elite Worldwide Inc.
    By Bob Cooper of Elite
    If there is one thing our industry has done since the very beginning, it’s put technicians into the role of service advisors. The rationale is that they have a good understanding of automobiles, which will enable them to be competent advisors. Unfortunately, that’s the furthest from the truth. Although an in-depth understanding of automobiles can be an asset, there are a number of other things you should consider before offering a service advisor position to one of your techs.
    First and foremost, you need to consider why they want the position, or why you are offering it to them. If they suggested they would like to become an advisor because it has become difficult to work on cars at their age, then they may very well be the wrong person, because they are looking to become an advisor out of necessity rather than interest. The same is true if you are looking to move a tech into an advisor position when that tech has shown little interest in becoming an advisor in the past. Two of the most common mistakes we see at Elite are shop owners making this hiring decision out of necessity rather than interest, or out of desperation rather than inspiration. In either case, there is a high probability of failure.
    Another major mistake we see made by shop owners is they put far too much value on the technician’s technical skills, and far too little value on the tech’s natural people talents, and their passion for the position. Unfortunately, these owners don’t understand just how important the people skills component is to an advisor’s success. So here is what I am going to encourage you to consider before you offer one of your technicians a service advisor position.
    First of all, when it comes to selling auto repairs and services, bear in mind that natural talent trumps technical skills every time. Talent can’t be taught, but skills can, so if your tech doesn’t naturally smile, doesn’t have a positive attitude, or is not quick-witted and articulate, then they may do a fair job for you, but they will never be the advisor that keeps you ahead of your competitors. You will find there are a number of companies that offer online behavioral assessment testing to evaluate the sales potential of candidates, and I would strongly encourage you to take advantage of this type of testing. You will more than likely be surprised with what you discover.
    Secondly, you will need to evaluate how well he or she will be accepted in the advisor role by your other employees. If the candidate has a good relationship with your other employees, and if you feel your employees will be willing to take directions and orders from the candidate, then they may very well be a good fit for an advisor position.
    The third thing you will need to do is avoid overselling the position to the candidate. In addition to knowing the benefits of the position, they’ll need to know all of the negatives as well. In essence, you want to make sure that there are no surprises. We also encourage all of our clients to get the significant other of the candidate involved in the decision making process. As we say at Elite, “When you hire Larry, you get Mary”, so you will need to ensure that their spouse is also on board with the new position.
    Lastly, I hope you do two other important things if you decide to have one of your technicians take on the role of service advisor. First of all, take them for a test drive by having them help you on the counter, and pay close attention to their people skills, how well they are able to manage their emotions, and how they deal with difficult situations. Secondly, if and when you put that tech on the service counter, remember, training trumps productivity. What that tech will need more than anything is professional sales training, encouragement from you, and the opportunity to become… a superstar.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
     
  4. Elite Worldwide Inc.
    Elite's Bob Cooper and Doris Barnes share how your service advisors can use tire analogies to handle even the most difficult sales objections:
     
    For additional help increasing your shop's sales, customer satisfaction and customer retention, learn more about our industry acclaimed our Masters Service Advisor Training at https://www.eliteworldwide.com/automotive-service-advisor-training.html 
  5. Elite Worldwide Inc.
    By Bob Cooper of Elite

    Many years ago when I was still working on cars, I came to the realization that I would someday own my own shop. I also realized that in order to do so, I would first have to learn how to sell service. The challenge I faced at that time was not only did I not know how to sell, but I also had little respect for salespeople, because I viewed them as people who would take people’s money, and more often than not do little in return. So I was actually faced with two challenges; having to somehow learn how to sell, and also deal with my internal struggle of becoming part of a profession that I had little, if any, respect for. So here is what I did.

    I went to the local book store looking for books that would help me learn how to sell, and hopefully help change my perception of selling at the same time. To my amazement, I found a book that I knew would be perfect for me. It was written by the nation’s top car salesman at that time, and I thought even though he sold cars instead of service, it was likely more closely related to the auto service industry than any other book I would find. I bought the book, I hurried home, and I began reading each and every word. As you can imagine, I was thrilled with what I was learning, so I was circling key phrases, and taking pages of notes. And then I came across a part I will never forget, where the author said that every time he was selling a car, he would look across his desk at the customer, and he would view them as a bag of groceries. He said the reason he would do this was to convince himself that if the customer didn’t buy that car that day, he would not be able to eat dinner that night.

    As soon as I finished that passage, I folded up the book, and I put it away. To this day I never finished the book, but it still sits on my bookshelf for one simple reason; to remind me of everything I never want to be. With all due respect, that author may have transferred a lot of titles, and he may have ran up the numbers, but the one thing that he appears to have forgotten is this: The people he was dealing with were your moms and dads, and your brothers and sisters. They were people with hearts and souls, not just commodities, or a means to an end.

    Ironically, at the same time I was also captivated by two people; the late, great John F. Kennedy, and the late, great Martin Luther King, and what I learned from these two was something that has been with me ever since. It’s the understanding that selling really has nothing to do with money. It never has, and it never will. You see, what selling really is, is helping people believe in what we believe. President Kennedy was able to unite America by helping us believe that we were the greatest nation on earth, and Doctor King was able to help us believe that all mankind is equal, regardless of the color of our skin.

    Over the decades I have hired many superstars, and as a company we have trained tens of thousands of advisors, so I can tell you with a clear heart that the best advisors in America have a number of things in common. Most importantly, they never put money ahead of people, and they understand that just because someone authorizes a repair or service, it doesn’t necessarily mean that they were sold on the service. The true superstars will always sell from their hearts, and they know that when that magic moment occurs, and the customer believes in what they believe, then and only then, have they closed the sale. The money? Interestingly enough, there is another principle that I have learned over the years, and it’s another one that is timeless. It’s the one that says, “If we do the right things for the right reasons, the money will follow.” Selling service is one of the easiest and most rewarding jobs on earth as long as you believe that the service is the right choice for the customer, and as long as you sell… from your heart.

    For additional help increasing your shop's sales and customer satisfaction in a professional and ethical way, learn more about Elite's industry acclaimed Masters Service Advisor Training.
  6. Elite Worldwide Inc.
    Most shop owners have learned a lot from their mentors, including the importance of listening to their customers, fixing cars right the first time, and never putting money ahead of people. Unfortunately, in far too many cases their mentors pass on some information that actually shouldn’t be followed. The most common example, which we see on a daily basis at Elite, is misinformation on how a shop owner should properly advertise. I am not suggesting that their mentors didn’t have good intentions when they passed their advertising guidance along, but it is safe to say that in most cases their advertising knowledge was obtained through their own trial and error, rather than marketing research.
    At Elite we know there are a lot of people outside of our industry that we can learn from, so reach out to the top universities in America in order to discover what they have learn from world-class companies like Starbucks and Apple when it comes to marketing. While the insights from these experts are usually reserved for our coaching clients, I wanted to pass along one discovery that I feel every shop owner needs to be aware of, as it may very well change the way you market your shop.
    In the most general sense, in the world of marketing there are two forms of advertising: Brand awareness, and CTA (Call to Action). Examples of brand awareness advertising include key chains, glove box folders, outdoor signs and sponsoring community events, while CTA campaigns like direct mailings, online coupons, etc. encourage immediate action (offering a special price or service package, for example). As I am sure you are aware, the overwhelming majority of shop owners invest almost all of their advertising budgets into CTA campaigns for one simple reason: they will predictably see immediate results in the form of phone calls and new customers. However, most shop owners are unaware that study after study done by leading universities has consistently drawn the same conclusion – You will get a better return on your investment with brand awareness than with CTA ads.
    The mistake we see most shop owners make is they will start a brand awareness campaign (such as signs at sporting events in their community), but then they’ll pull those signs in a few months because they feel that few, if any, customers have come into the shop because of the signs. What they overlook is how many people saw those signs, and the impact it will have on those potential customers when they are in need of service. While you will not see the results as quickly with brand awareness advertising as you will with CTA campaigns, you will not only see a better ROI in the long run, but the added benefit of brand awareness campaigns is that they put the focus of your potential customer on your brand… rather than on a price.
    At Elite we encourage all of our clients to embrace brand awareness campaigns, and to wean themselves off of their dependency on costly CTA campaigns. Is there a place for CTA campaigns in the auto repair business? You bet! But please don’t make the mistake that so many shop owners make, and rely solely on CTA ads.
    So do this: Identify your ideal customer, put together a well-designed brand awareness strategy that will reach your targeted customer, and stick with it. If you do, you will be thrilled with the results.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
  7. Elite Worldwide Inc.
    If you are in business long enough the time will come when you’ll need to let someone go, so my goal with this article is to help you through the process.
    The most common reason shop owners are reluctant to fire someone is they feel the employee is either irreplaceable, or it will take a long time to find the right replacement. First of all, everyone is replaceable, and as I have often said to clients, the graveyards are filled with irreplaceable people. With regards to the concern that it will take a long time to find a replacement, as a shop owner you can dramatically reduce this time by keeping your pipeline full. You do this by always being in “recruiting mode”, and by building relationships with the industry superstars. Secondly, if you have a low performer, or someone that is unwilling or unable to work well in your shop’s environment, in many cases you are better off without them even if your productivity and profits drop. Their behavior can take a dramatic toll on the morale of your other employees, and when you consider that cost, in many cases you’ll be better served by letting the employee go.
    The second reason many shop owners are reluctant to let an employee go is they feel partly responsible for the employee’s failure to produce or conform. In essence, they feel at fault for not providing the employee with the right opportunity, the right training, or the right support. Regardless, as a business owner you need to learn from any mistakes you have made in managing people, and move forward. Otherwise you are prolonging the inevitable and setting your business up for an even greater failure.
    The third reason shop owners hesitate to terminate is they find themselves feeling sorry for the employee. This is often the case when they have an employee that has been with them for a long time, and as the employee has grown older, their productivity has dwindled. Shop owners will tell themselves that the employee has been loyal over the years, and if released, the employee they will have nowhere to go and no means of support. In cases like this there are two things you need to consider: First, you should never feel responsible for any employee’s failure to plan for their own future, and secondly, you need to evaluate the true cost of keeping them on board. Over the years I have seen many shop owners that would be far better served by paying such an employee to stay home, and filling the position with a productive employee. I am not suggesting that you pay them to stay home, but that you consider ways of phasing these employees out of your company.
    Lastly, here’s the real secret: If you hire the right people, if you provide them with clarity in expectations, if you provide them with minimum levels of acceptable performance with deadlines, and if you give them the necessary training and opportunities, then you have done your job. Although letting them go will never be easy, it will be a lot less painful, and you can in most cases still remain good friends.  I have done this, and I know you can too.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.
  8. Elite Worldwide Inc.
    Superstar shop owner and Elite Business Development coach Rudi Rudloff explains the critical difference between “training” and “coaching” your auto repair shop’s employees.
    For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Rudi through Elite Top Shop 360: Top Shop 360
  9. Elite Worldwide Inc.
    By Bob Cooper
    A few years ago I had the opportunity to interview over forty people for a panel of customers that I moderated. My intent was to discover what drives their decisions in choosing an auto repair shop, and how they make their purchasing decisions. I spent well over an hour with many of these prospective panelists so walked away with some truly surprising and noteworthy insights, but the most profound discovery was that we as an industry have an expectation of loyalty from our customers, when in reality customers have no sense of loyalty to us.
    Now please don’t misunderstand me: I am not suggesting that we shouldn’t work hard to gain the customer’s trust, meet with their expectations, and do what we need to do to turn them into repeat customers. What I am suggesting is that shop owners should never just assume that their customers are loyal, and should instead have the mindset that they need to earn the customer’s trust and business with each and every visit.
     Loyalty, in its truest sense, is something that should be held in the highest regard, and reserved for our patriotism to our country, our commitments to our friends and family, and to the elements of our lives where we have a genuine sense of indebtedness and moral obligation. But our customers? No matter how great our service is or how much we care about them, in reality they owe us nothing, so there should be no sense of moral obligation on their part.
    This isn’t a viewpoint that I arrived at on my own, but by listening closely to your customers. Throughout the interview process I discovered that they feel absolutely no responsibility to return to your shop for additional repairs or services, which is why I’m sure many of you have found that your customers will zip into fast lubes for oil services rather than coming back to you.
    Now before you let your feelings get hurt, let’s look at another example. Let’s say that you have a local grocery store that you like, and visit on a regular basis. Even though that grocery store offers a wide selection of bread, you may very well go to a local bakery. You may feel that the bread at the bakery is better, that it’s still fresh by the time you get home, or that it just provides a better value in some way. Regardless of why you go to the local bakery, I suspect you wouldn’t feel as if you’re doing something wrong by buying the bread at the bakery instead of the grocery store, right? If that’s the case, do you think the grocery store owner should feel offended by your absence of loyalty, or should view your decision as a practical one? If he does the latter, he has two options: accept the fact that you’ll purchase your bread elsewhere, or learn what he needs to do differently to improve your bread purchasing experience so that you purchase your bakery items while still at his grocery store.
    Ladies and gentlemen, your business is no different. While I’m sure you have a few customers who can truly be considered “loyal”, if you develop the mindset that your customers should return to you out of loyalty, rather than looking for every opportunity to improve the customer experience, and truly earn their business with every single visit, then you will only be scratching the surface of your shop’s potential.
    Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses.
  10. Elite Worldwide Inc.
    Elite Business Development Coach and past superstar shop owner Kevin Vaught shares where both your overall payroll, and your service advisor payroll should land as a percentage of your shop's sales: 
     
    For additional help building a more successful auto repair business, learn how you can team up with a top shop owner like Kevin to reach your shop's goals. 
  11. Elite Worldwide Inc.
    If you want to build a successful auto repair business, you will need to strongly consider the length of the warranties you offer. 
    First of all, you need to know your failure rate. The top shops in America have extremely low failure rates in both parts and labor. I’ve also discovered that the overwhelming majority of those failures occur within the first 90 days of service, so regardless of whether your warranties are for 90 days or for years on end, you’re going to absorb all but a few of those failures within the first 90 days. 
    The second thing you need to consider is your level of exposure to risk. If you are using high quality parts, and if you have competent technicians, you’ll find your exposure to be surprisingly low. Consider this: If a repair makes it beyond the first 90 days, there is a high probability that the parts are sound, and that they were installed correctly. Outside of wear and maintenance items like brakes, tires, wiper blades and filters, I am sure you will agree that those replaced parts should last for a number of years.  If a part makes it past 90 days and subsequently fails within the first year, even if your standard warranty is for only 90 days, you’ll more than likely cover the repair in order to satisfy the customer. This is the primary reason why most shop owners provide a 12 month, 12,000 mile warranty on the majority of their repairs. 
    The more important question for you as a businessperson is, what do you do when a part fails after the first year? Well, I can tell you that the best shops in America have a number of things in common, one of which is that they realize it’s a lot easier and more affordable to keep a customer than it is to replace a customer. So let’s examine the differences in the warranties offered by the average shop owners, and the warranties offered by the true industry leaders. 
    The average shop owner will typically warranty their repairs for one year or 12,000 miles, and if a part fails after that first year, they will tell their customers that they will do the repair at a discounted rate. Now here’s the problem with that approach. With every customer panel we have done at Elite, when asked how long they expect a repair to last, the customers all inevitably say, “forever.” When questioned further, they then tell us that they expect the repair to last at least as long as the original, which is typically four or more years. So if your repair fails after a year, and you offer to do it again at a discounted rate, you may very well have made a few dollars on that second go-around, but you’ll more than likely lose the customer. 
    At Elite we feel that in today’s competitive environment your base warranty should be 2 years, 24,000 miles. First of all, if you have the right part suppliers, and the right technicians, then the added risks are not only minimal, but after a couple of years a good percentage of those vehicles will be sold.  Secondly, if you plan on keeping your customers as your customers, you will need to not only meet their expectations, but more importantly, you will need to exceed their expectations.
    By offering a warranty of 2 years, 24,000 miles your team is going to have a lot more confidence in your services, and more pride in what they do. You’ll also find that a 2 year, 24,000 mile warranty will give you a competitive edge when marketing your services, it will be a great sales tool for your service advisors, and it will help take you out of the price-comparison game with your competitors. Now I realize that you may not be able to warranty some repairs for 2 years or 24,000 miles due to extreme weather conditions, the driving conditions in your community, commercial application, etc., but you can make sure you have the right parts and people, and you can talk to your part suppliers about your expectations. If you do, I am confident you will then do what the top shops in America have already done, and offer warranties that not only show your confidence in your repairs, but that allow you to be the hero with those rare failures that occur after the first year when you tell the customer… it’s no charge. Best of all, providing 2 year, 24,000 mile warranties shows your customers, and your entire community, that you truly do care… about people.
    Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com.









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