Alamo Auto Supply Indiana

El Paso, Texas, is located in the westernmost tip of Texas. Known as the Sun City, El Paso is closer to five other state capitols than to Austin, the capitol of Texas. Contrary to the city's perceived remoteness, El Paso businesses enjoy a large potential customer base. Consider this — the El Paso/Juarez/Las Cruces international metroplex is the largest in the world, with a combined population of about 2.3 million. It's not so surprising that the October 2005 issue of Entrepreneur magazine ranked El Paso as the No. 1 midsize city in the United States on its Hot Cities for Entrepreneurs list. And when it comes to entrepreneurs, Alamo Auto Supply's CEO Bob Krasne has made a name for himself in the Sun City. He has transformed a small transmission shop he bought in the mid '70s into a thriving multimillion dollar truck and SUV accessory distributorship and installation business.

Bob Krasne has roots in the automotive industry. He had been a businessman in Omaha, NE, for years, owning a car and motorcycle dealership. After selling those businesses, he found himself looking for another business opportunity to keep him busy. It was with a little luck that he stumbled across his next entrepreneurial opportunity. Bob shares, "I went to a party one night with my family, and one of the cousins there said, 'My uncle just died in El Paso, and his wife wants to sell the shop.' That's how I heard about Alamo. We flew down here, purchased the shop, and moved to El Paso six weeks later."

ALAMO AUTO IN 1976

The Alamo that Bob Krasne bought in 1976 was nowhere near the business it is today. "Alamo was just a small transmission repair shop here in El Paso," Bud Reno, general manager of Alamo Auto Supply tells Light Truck and SUV. "It was a little transmission shop back then. Alamo did mufflers and hubcaps and transmission overhauls. Realistically, it was kind of a little old junk store. A lot of people must have thought Bob was crazy when he purchased it at the time."

Dick Krasne, president of Alamo Auto Supply and Bob's son, agrees. He shares, "I was 16 when dad moved us down here, and it was somewhat frightening. The shop was definitely nothing to brag about."

Did Bob think buying the shop was a crazy idea? No, he says. "Even though some might have thought I was crazy back then, I knew that I would be successful. But to be honest, I never dreamed that it would end up being anything like it is today!"

THE SHOP TODAY

Today, Bob and his two sons Dick and Alan run Alamo Auto Supply. The three of them contribute to running this family business. As far as titles, Bob is the CEO, Dick is the president, and Alan is the vice president. Bud Reno is the general manager and runs the shop.

With about 80 employees, Alamo is a bustling business. Alamo does business as both a distributorship and an aftermarket shop. Its distribution business covers west Texas, New Mexico, and Mexico. In addition to Alamo's distribution network, the company also sells direct to the public.

And of course Alamo does installs. Trucks and SUVs make up the majority of the install work. Reno shares, "Trucks and SUVs are our meat and potatoes. We do a lot of goosenecks and fifth wheels. We also do a lot of performance products like intakes and exhaust systems. We're doing some of the programmers that are helping customers improve performance and fuel mileage. We also do a lot of bedcovers. We also do suspensions, tires, and wheels. Basically, if you can put it on a truck or SUV, we cover it. We don't really get into cars, with the exception of some audio and electronics. Trucks and SUVs are our heavy hitters." Alamo does all the work in-house with the exception of paint and spray-on liners. For those jobs, it subcontracts the work.

Alarm systems also make up a large portion of Alamo's work. Reno shares, "Alarm systems are a big part of our business because of vehicle theft in the area — especially Ford super duty trucks. These trucks have become high-volume theft vehicles. So we do a lot of alarm and security system installs."

FIRST IMPRESSIONS

As you approach Alamo Auto Supply from the highway, you immediately see the huge sign just off the street towering above the parking lot. The sign includes a lighted message board flashing information such as time and temperature as well as current specials and products.

As you pull into the parking lot, you see the huge store off to the right — all 46,000 square feet of it. You also can't help but notice all of the signage in front of the store indicating some of the products Alamo carries. The day Light Truck and SUV was there, we arrived about 30 minutes before the store opened to scope out where we were going to do the photo shoot. By the time Alamo opened, there were six customers waiting to enter the door. And at 8:30, we walked into the showroom with the rest of the customers. The shop stayed busy all day.

SHOWROOM

Saying that Alamo Auto Supply has an average showroom is like saying that the SEMA show in Vegas is an average trade show. Alamo's showroom is huge with wall-to-wall aisles of displays. But with so many products available, how does a business the size of Alamo choose products to display? "Our showroom gives customers a chance to see some of the products we carry," says Dick Krasne. "We like to keep the showroom stocked with the latest products. But keeping up with it can be a challenge. In fact, we have one person dedicated full time to manage the showroom."

SHOP BAYS

Alamo has plenty of room for its technicians to do installs. In the main shop bay, you can fit about 11 vehicles in at one time to be worked on. In an adjoining bay, two lift bays provide technicians easy access for under-body work. The ramp leading to the bays is adjacent to the parking lot, so access is easy.

WAREHOUSE

If you are going to be a distributor, you had better have plenty of products on hand. That is not a problem for Alamo. Rows of warehouse shelving stock plenty of products. "We have a large inventory of product," shares Dick. "If we have an item in stock, we can have it in a customer's shop the next day."

PRODUCTS

The aftermarket business is not lacking for products. With all of the different manufacturers and products out there, keeping up with them could seem like mission impossible. But since 99 percent of Alamo's purchases are direct from the manufacturer, keeping up with them is critical. For product purchases, the team relies on Alan. "Alan handles purchasing," shares Dick. "He and his team maintain close relationships with all our manufacturers to stay informed on the newest products and product upgrades available. The team also researches new manufacturers to see if their product lines would be a good fit for our business."

After the initial research, the management team decides on whether or not to carry the product. "Every Tuesday morning myself, Dick, Alan, and some of the folks from purchasing sit down and take a look at new products," shares Reno. "We have an overview of the product and decide if it's viable for our company or not. We look at the buying power and the gross profit margin. But it's not always about gross profit margin. There are some products we carry that don't have huge profit margins, but we might carry them because they complete our product package. We decide as a management team what products will be best for our business."

The company also relies on customer feedback on products. "We listen to our customers and what they want," says Dick. "That ensures we are meeting their needs and carry the products they want. I believe that the close relationship we have with our customers has also been instrumental to our growth over the years."

SALES TRAINING

Having a successful business isn't just a matter of carrying the right products. It's important to have employees who are knowledgeable about the products sold. Dick says that training is an important function at Alamo. "We have weekly sales meetings," he shares. "We learn about new products and are sometimes able to have a manufacturer's rep come in and give our sales team some specific product training."

THE RIGHT EMPLOYEE

With any business, finding and keeping the right employees is vital to success. You can have all the training and mentoring in the world, but still not have good results. So what does Alamo look for in potential employees? Bud says, "In this business, you want employees that are enthusiastic about what they are selling. So we like to have employees with an automotive background."

Even though having an automotive background is helpful, it isn't a guarantee of success. Reno looks for people who are enthusiastic, hard-working, and have a customer-service mentality. "If someone had no knowledge of the automotive industry, they can learn it. I can train them. But if a person has no motivation, no enthusiasm, or customer-service mentality, he can have tons of knowledge, but will not make it in a sales job. It's about attitude!"

NEW EMPLOYEE TRAINING

When it comes to hiring new sales guys, mentoring plays a big role in their training. "What I do, when I hire new sales folks, I always have them piggyback with one of our veteran guys," shares Reno. "They will spend a couple of weeks shadowing that guy and getting a feel for what is going on. With the breadth of products we carry, the size of our facility, and the pace we run, it can be a little overwhelming for someone new. I'll tell guys when I hire them that they have probably never experienced anything like this. But following another employee around for a few weeks gives our new hires a chance to ease into it. They learn how we do things and learn about our products. They also get a chance to see how our sales team interacts with customers."

Alamo uses computers throughout the facility. There are computer terminals throughout the facility that handle everything from inventory management and invoicing to work orders and product information. So, computer training is an important part of new-hire training. "We have an employee that does all our in-house computer training," shares Reno. "He'll show new hires how to access different areas of the computer. They become familiar with everything from pulling up an old invoice, creating a new invoice, or looking up product information."

MARKETING

Alamo's marketing attack is multi-pronged. It includes some print, radio, and television. The marketing campaign kicks around its anniversary sale. "The end of February and in to March is our busiest time of year," shares Dick. "This is when we have our anniversary sale. We do a lot of marketing around that sale. This year, we did TV spots and sent an eight-page circular direct mail."

But the biggest marketing Alamo relies on is its customers. "Word of mouth can be a strong marketing tool," says Dick. "So we make sure our customers are happy. We educate them to help them make educated purchasing decisions. We treat them in a professional manner and ensure they are satisfied with their experience. In the event that a customer is not happy, we do whatever we can to help resolve the issue. We go the extra mile to make sure they are happy."

MARKET FORCES

Dick shares that fluctuating gas prices are the biggest market force affecting Alamo's business today. "Gas prices are affecting our customers. You see it in the news — truck and SUV sales are down. Some people are switching to smaller crossover vehicles. We have seen an increased customer interest in gas-saving products." He also shares that Alamo is positioned well to meet the challenges fluctuating gas prices may present. "I firmly believe in the natural evolution of a business. Thirty years ago, I couldn't have imagined we would be where we are today. The company has evolved thanks to our ability to keep up with the latest products and trends. We will remain flexible so that we can evolve with today's market and that of the future."

Alamo Auto Supply has come a long way in the three decades since Bob Krasne purchased the business. By focusing on the customer and allowing itself to evolve as a company, the team at Alamo has found a recipe for success. For Alamo, the future looks bright in the Sun City.