Distributor of the Year Finalist

PASCALE SERVICE CORPORATION

In his words: James Pascale, Owner

WHY DID YOU START THE BUSINESS?

My father, Frank Pascale, started the business because he wanted to earn a better living and wanted to be his own boss. He worked during the depression years and during World War II repairing vehicles. He was unable to enter the armed forces during the war as he lost an eye when he was 19 years old while repairing a vehicle on the family farm.

Jim Pascale (left) is president of Pascale Service Corporation, a business started by his father, Frank. Here, he and Mike Toye, the company’s parts manager, stand in the showroom of the their Pawtucket, R.I. headquarters.Jim Pascale (left) is president of Pascale Service Corporation, a business started by his father, Frank. Here, he and Mike Toye, the company’s parts manager, stand in the showroom of the their Pawtucket, R.I. headquarters.

He worked for various companies over the years repairing vehicles. He founded Pascale Garage in 1945 as an auto repair shop in Pawtucket, Rhode Island. Soon after opening he began repairing trucks owned by his brother who had a number of trucks used in his brick business. Eventually the business specialized in the repair of trucks and diesel engines.

In 1959, Pascale Garage became a parts and service dealer for International Trucks. This began our career in the heavy-duty parts business. We built a parts department and hired an outside salesperson to promote parts sales. Pascale Garage was the first company in our area to have outside parts salespeople in the all-makes truck parts business.

We outgrew the original location and have moved four times. The last move was to our newly built, present location in 1966. After 11 days at this new location the building burned down. The fire started in the repair shop during the second shift on a Friday night.

We moved back to our previous location that weekend and were open for business that Monday. The new building was repaired soon after and five additions have been added since.

The company name was changed to Pascale Service Corporation in the mid ’70s to better describe the nature of our business.

I purchased the business from my father in 1970 and am the president of the company.

We employ 20 people, including two outside salespeople. Our sales area is approximately a 30-mile radius from our single location. We cover all of Rhode Island, southern Massachusetts and parts of Connecticut.

WHAT’S BEEN YOUR TOUGHEST BUSINESS DECISION?

During the 1970s we were in the rebuilding business. We would rebuild transmissions, differentials, Cummins’ fuel systems, cylinder heads and reline brake shoes. When we first started in the rebuilding business there were not many quality competitors.

Pascale Service Corporation moved to its present Pawtucket, R.I., location in 1966. Since then, they have expanded the facility five times.Pascale Service Corporation moved to its present Pawtucket, R.I., location in 1966. Since then, they have expanded the facility five times.

Our advantage was that we had high quality rebuilt units. But as time went on we could see that the competitors were getting better and the manufacturers of the products were getting into the rebuilding business with good quality and lower prices.

It was necessary to start lowering the prices of our products in order to compete. We decided to shut down the rebuilding operation in the beginning of the 1980s and started purchasing the items from others. It was a tough decision at the time. We had a lot of money invested in machinery, training and inventory. We then concentrated on developing more profitable business opportunities. In the long run, it was a good decision for us.

WHAT WAS YOUR BEST BUSINESS DECISION?

I think my best business decision was to become a member of VIPAR Heavy Duty and CFS.

In 1995, we joined CFS (Council of Fleet Specialists), which later became CVSN (Commercial Vehicle Solutions Network). CVSN has helped us to learn advanced business practices and helped us to build strong relationships with other distributors and suppliers.

We became a member of VIPAR in 1999 which has enabled us to have access to many product lines at competitive pricing. We would not have been able to compete in this market without being a member of VIPAR.

Through VIPAR we have access to major heavy-duty truck parts suppliers such as ArvinMeritor, Baldwin Filters, CR Industries, Bendix, Haldex and many more. These suppliers give us valuable support with technical help, training and sales support, as well as sales incentives.

WHAT IS THE BEST WAY TO KEEP A COMPETITIVE EDGE?

In my opinion, the best competitive edge is to be the most helpful, knowledgeable and up-to-date distributor in your area. This includes:

* Having what the customer wants and being on time;

* Not making promises that you cannot keep, and if for some reason you cannot keep a promise, contact the customer well in advance;

* Keeping a good inventory of the fast-moving parts that a customer expects you to have on hand. Customers expect us to have the essential parts on hand and if we are out of these items consistently, these customers will go to our competitors; and

* Being helpful and supplying customers with the technical help and service information needed to install the parts you sell them. Also be up to date on the newest products. If a customer comes in looking for a part and you do not know what it is or what it is for, this can be very embarrassing.

 

WHAT IS YOUR FIVE-YEAR VISION?

We will continue the same way we have in the past, but we will be very cautious. There are many changes happening in this industry and we must be able to adapt to those changes quickly in order to survive. Our emphasis will be on profitability.

WHAT IS YOUR BUSINESS PHILOSOPHY?

I want our company to be the best at what we do. What best describes this is our mission statement: “Pascale Service Corporation is proudly operated by our Team Members. Each Member is dedicated to the goal of complete customer satisfaction through quality service. We seek to exceed all customer expectations, thereby earning long-term loyalty and trust. We will provide on time, the best products and services available to our customers.”

WHAT IS THE BIGGEST CHALLENGE FACING THE AFTERMARKET?

Parts sales may be harder in the future. The newer trucks are using a lot more proprietary parts. The OEMs are not giving as many choices of components on new trucks as they used to. Freightliner and Volvo trucks are giving me concern because they are now using foreign components, such as Volvo and Mercedes engines and drivetrains for which we have no aftermarket access.

Pascale Service Corporation carries a full range of products and focuses on keeping fast-moving parts in stock to meet customer demands.Pascale Service Corporation carries a full range of products and focuses on keeping fast-moving parts in stock to meet customer demands.

A sizable investment will be required in electronic service tools and training in order to properly service these new trucks.

An additional challenge will be finding qualified people to fill the parts sales and technician positions.

HOW DO YOU SEE THAT CHALLENGE BEING RESOLVED?

I think if you plan to stay in this business you will have to recruit and in-house train parts and service personnel. We will have to make contacts with trade schools and colleges in order to get access to potential qualified applicants.

It is also a good idea to establish a good relationship with the

local tuck dealers in your area. Sometimes it is possible to set a mutually beneficial arrangement where you can help each other.

The heavy-duty distributor should belong to a strong trade organization, like CVSN and HDDA (Heavy Duty Distributor Association) in order to keep abreast of industry trends and to learn of better ways to operate their businesses.

We will have to promote and support legislation for the Right to Repair Act for trucks in order to acquire the ability to program the vehicle ECM and get other OEM software related information.

DURING YOUR TIME IN THE INDUSTRY, WHAT HAS BEEN THE MOST SIGNIFICANT CHANGE?

The most significant change that I have seen is the change in our customer base. A number of years ago the bulk of our customers were small fleets with one to five trucks. These were good, loyal and profitable customers. Many of these types of customers have disappeared. These companies have either gone out of business, been acquired or have gone to leasing vehicles.

 

WHAT ADVICE WOULD YOU GIVE A YOUNG PERSON CONSIDERING A CAREER IN THE AFTERMARKET?

I would recommend that they get into this business at a young age. They should try to get a summer job at a local heavy-duty parts distributor to get exposure to this industry and learn as much as possible. There are universities now that have majors in the aftermarket. A young person should consider attending these schools in preparation for a rewarding career.

 

WHAT DO YOU KNOW NOW THAT YOU WISH YOU KNEW WHEN YOU FIRST GOT INTO THIS BUSINESS?

Business is still a learning curve no matter how long you have been in it. There always are things you wish you knew ahead of time.

WHAT MOTIVATES YOU EVERY DAY?

The motivation for me is to have our customers think of us as the most knowledgeable and enjoyable company to do business with. I want our company to be the best at what we do.

Every day I start with this notion in mind. I look for new and better ways to accomplish this goal.

I believe if a company does this, success will follow. n

Name of Company: Pascale Service Corporation

Headquarters Address: 51 Delta Drive

Pawtucket, R.I. 02860

Web site: www.pascaleservice.com

Founded: 1945

Owner(s): James Pascale

Number of Locations: One

Number of Employees: 20

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