The Heavy Duty Parts Report
Each week Jamie Irvine and his guests have conversations that empower heavy-duty people. They discuss tips, tools, and technology that help heavy-duty parts manufacturers and distributors sell the right parts to fleets, repair shops, and truck operators.
The Heavy Duty Parts Report
How to Create a Connection with Your Customers
Episode 320: When you sell heavy-duty parts, you often sell a lot of the same lines as your competitors. How do you make your company stand out? One way is by finding ways to invite your customers into your business and making them partners of your success.
This week we spoke with Curt Westphal from HDA Truck Pride and Jason Rose from Midwest Wheel, and we are going to hear a great example of a program at HDA Truck Pride that members use to make their customers partners in their success.
Show Notes: Visit HeavyDutyPartsReport.com for complete show notes of this episode and to subscribe to all our content.
Sponsors of this Episode
Heavy Duty Consulting Corporation: Find out how many “fault codes” your heavy-duty parts business has. Meet with us today. Visit HeavyDutyConsulting.com
Hengst Filtration: There's a new premium filter option for fleets. If you're responsible for a fleet, you won't believe how much using Hengst filters will save you. But you've got to go to HeavyDutyPartsReport.com/Hengst to find out how much.
Diesel Laptops: Diesel Laptops is so much more than just a provider of diagnostic tools. They’re your shop efficiency solution company. Learn more about everything Diesel Laptops can do for you today by visiting DieselLaptops.com today.
HDA Truck Pride: They’re the heart of the independent parts and service channel. They have 750 parts stores and 450 service centers conveniently located across the US and Canada. Visit HeavyDutyPartsReport.com/HDATruckPride today to find a location near you.
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You're listening to the Heavy-Duty Parts Report. I'm your host, jamie Irvin, and this is the place where we have conversations that empower heavy-duty people. Welcome to another episode of the Heavy-Duty Parts Report. In this episode, we are going to talk about what it takes to differentiate your heavy-duty parts and service business from your competitors, your heavy-duty parts and service business from your competitors. We're also going to talk about why you should consider bringing your customers into your business and making them partners in your success, and we're going to talk about what the sales prevention department is and how to avoid it. Let's get started.
Jamie Irvine:When you sell heavy-duty parts, it is extremely difficult to differentiate yourself from your competitors on product alone. Oftentimes you're selling the exact same products and so there is no product differentiation. The next logical thing that people talk about is their service, and they say you know, what differentiates us is that we have excellent customer service. But how excellent is your customer service? And even if it's good, how differentiated is it from your competitors? So, for example, do you answer the phones quickly? Do your competitors? What's the difference between the time it takes you to answer your phones and the time it takes them? Probably not that much different. Do you process orders relatively quickly, do you deliver them relatively quickly? For example, if someone calls in the morning and gives an order at nine, is it delivered, usually by about 11 am? If this is true for you, it's more than likely true for your competitors as well. So, while there is some opportunity to differentiate yourself by giving excellent customer service, this is difficult to systemize and scale because, of course, your employees all operate at different levels, and so, while you may have a couple superstars on your team, chances are not everyone in your business is giving top-tier service to your customers. That's just unrealistic. So if products don't differentiate you, if your service doesn't differentiate you, what's left? Well, I think this is why we see the race to the bottom on price, because price becomes the only thing that you can really do to measurably make yourself different from your competitors. As we all know, with the race to the bottom, though, before long nobody's making any money, and then prices have to come up a little bit to try to make some profit, and this just isn't a sustainable way to differentiate yourself in the long term anyway. So if product differentiation doesn't cut it, if service is difficult to do at a level that truly differentiates you, and if price isn't the solution, what on earth is left?
Jamie Irvine:At the Heavy-Duty Consulting Corporation, we work with our clients to develop programs that really make them stand out as different from their competitors. And what's really important here is that you move beyond the barriers of entry into the parts business. Now, if you've listened to the show any length of time, you've probably heard me talk about this, but for the new listeners, I want to review what those barriers of entry are one more time. So the barriers to entry into the parts business starts with your years of experience. You have to have knowledge. You have to have years of experience in the business to be able to really provide your customers with a good overall experience. If you lack that knowledge, if you lack that experience, you're going to make rookie mistakes, and this is going to be picked up by the more seasoned buyers immediately. So years of experience is important. In addition to that, you also have to have quality products. If the products you sell fail at an above average rate and cause unusually high amounts of downtime, it won't be very long and those customers will buy their products from someone else. So there is a measure of quality that is needed. Of course, you have to have a wide range of inventory to be able to cover the needs of your customers, and you have to have competitive pricing and comparable customer service.
Jamie Irvine:These are not differentiators, but rather the barriers of entry into the business. And yet most heavy-duty parts companies use these things in their marketing as if it in some way differentiates them. It does not. So how do you move beyond the barriers of entry into the parts business? Now, there are many ways to do that, and we work with our clients all the time to develop programs that accomplish this. If you'd like to work with us, head over to heavydutypartsreportcom. In the top menu you'll see a new button consulting. Click on that and take you right through to our consulting site and you can book an appointment with us. Now we need to build programs that are unique to you. Otherwise they wouldn't differentiate you from anybody if everybody could do them.
Jamie Irvine:So while I can't give you specifics today, because your situation and your company is going to be unique from the next company, I can talk about the general things that these programs all have in common. So the first and foremost thing that you have to do in one of these programs is you have to create an environment where the more the customer does business with you, the more they benefit. Now, of course, what comes to mind immediately is the rebate programs, which are based on volume of purchases, thereby giving the customer a rebate. In essence, this is no different than just lowering your total price to the customer. It's just a different way of delivering that price cut, and this is very easy to replicate. So it does need to move beyond rebates, but the concept of getting them to benefit the more they do business with you is taking you in the right direction, although I think you need to move beyond just giving them a rebate.
Jamie Irvine:The second thing is is that the customers need to be able to get access to things that they themselves can't do or, if they try to do it on their own, would be difficult for them to do in a way that isn't completely cost prohibitive. So a good example of this is a training program. So, for example, we have training programs exclusively for our consulting clients. Now, those training programs cost a lot for us to produce, but because we share them with quite a number of our clients, we can give it to them at a price point that is far reduced and way below what it would cost for them to build that training program on their own. So that's a good example. There's other ways that you can do this as well, other than just training, but that gives you the concept and the idea.
Jamie Irvine:And the third component to this is that it has to be something that is difficult for your competitors to replicate. So, for example, in the first component of this program, where we talked about rebates, that's not very difficult for your competitors to replicate. Once they figure out what the multiple is, they can offer the exact same program. So it has to be something that is difficult for the competitor to replicate Not necessarily impossible, but just difficult. A good example of this is one of our advertisers on the show right now is Diesel Laptops. Now they sell diagnostic tools and hardware, but they've also developed software to go along with that, to make their customers, technicians, more efficient. Now this isn't impossible for the competitors to replicate, but it's not easy and it would take a real dedication on the part of their competitors to make a similar thing, and now that they're several years behind diesel laptops, it would be very hard for them to catch up. So not impossible, but difficult. So if these three elements are in these types of programs, then you're moving towards differentiating yourself in the marketplace in a unique way.
Jamie Irvine:And again, if you would like to work with us on the development of a program like this, then head over to heavydutypartsreportcom. In the top menu there's a new button Consulting you can click that. It takes you right through to our consulting website where you can book a meeting with us to discuss your specific situation, and we would love to work with you to help you develop this program that is going to really make you stand out. Now in this week's featured guest interviews, we are going to show you an example of one such program that HDA Truck Pride has developed that really checks all of these boxes, and we're also going to interview one of their members who is using the program and we're going to learn about how it's helped them to be more successful. So we're going to take a quick break and when we get back from the break we're going to listen in to those interviews.
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Jamie Irvine:Just before we move on to the featured interviews, I just want to remind you that right now we are looking for forward-thinking distributors who would like to increase their parts visibility to their customers, would like them to stand out. Give them a tool that really makes them stand out and will help them to also dramatically cut down on the number of phone calls their parts counter have to take each and every day. If this interests you and you would like to join our beta program, I'd like to encourage you to book an appointment with me to discuss this and the requirements to be enrolled in this beta program that is exclusively for Heavy-Duty Parts Report listeners. So if this rings a bell for you. Head over to heavydutypartsreportcom slash Jamie. Take you right through to my calendar book. A bell for you. Head over to heavydutypartsreportcom slash Jamie. Take you right through to my calendar book a meeting with me and I'll fill you in on all the details.
Jamie Irvine:Okay, let's get to our featured interviews for this episode, where we are going to interview HDA Truck Pride and one of their members and see an excellent example of a program that they have developed that really makes them stand out as different and checks all the boxes that we discussed prior to the break. Listen in to my interviews with both HGA Truck Pride and one of their members. We're in Grapevine, texas, at HDA Truck Pride's annual meeting for 2024. Hda Truck Pride brings together over 140 members, both parts and service companies that serve the trucking industry in the United States and Canada. Being a member brings with it some serious value. I have Kurt Westphal, director of Program Development for End Users, with me today. Kurt, welcome to the show. Hey, thank you for having me. There's a couple things that we want to talk about. One is the TSE program, so I've heard a lot about it, but I don't know as much about it as I would like to, and so today you're going to fill me in on all the details. So what is the TSE program?
Curt Westphal:So the TSE program is so much it's hard to really talk all the way through without giving everybody a bunch of stuff. But the TSE program gives our memberships access to some things that they don't get, but they still have access to a lot of it. But it's actually something that our members can offer their customers and it's a way for us to help give them education, training, unity, support, networking. It's a way for them to get all that sort of stuff. So in there we offer them the HDA Truck Pride University. We offer them access to TSE regional meetings. We also help make little, small, tiny meetings where we bring in different suppliers that maybe not.
Curt Westphal:And when we do these trainings, it's for the service technician. It's not to figure out how to sell that part. It's to figure out when these problems happen, how do I fix it. And when we bring, you know, typically a salesperson from some of these bigger companies come in, it's to sell a part we need to bring them in to. How do we train these technicians on the aftermarket side to make sure they're getting the education that they need to be able to do the job that they need to do right as an independent repair person? A lot of the bigger guys do have access to some training and some better stuff on that, but there's not a good training service for the aftermarket side and we're trying to give that for them there.
Jamie Irvine:Okay, so it is primarily focused on providing training, education and support. Is it really only for service technicians that work at repair shops, or is it a program that would be parts and service?
Curt Westphal:For the most part it is for the service side of what they're doing and it is for the service side of what they're doing and it is for the technicians, but we also work with the with the management side of that of the members customer. Yeah, so when we work with them, we're trying to help them figure out how to run their shop better. We give them access to ours, to our 20 group. So we're starting a 20 group for the TSE side of the thing to make them have be able to have stuff so we can help train them and get them a better idea of how they're operating their business.
Curt Westphal:Because some of these guys that are members customers they were technicians that decided that I could do this on my own right. They don't really have the business background to be able to do it. They've figured it out and they've done an awesome job in what they're doing. But how do they take it to the next level? How do they make sure that they're relevant in their market? We go in and we help them figure that out, give them that support and what they need.
Jamie Irvine:And you've mentioned a couple of times kind of the TSE can be used for the customer. So if I have a parts and service company and I'm a HTA Truck Pride member and I'm enrolled in this TSC program, how do we then extend that to my customer, who maybe it's a repair shop that I'm working with or it's a fleet that has their own shop? Like how would I?
Curt Westphal:do that. So for the membership, it's one of those things where they go in they start talking to them about the program. They basically sales pitch the program. It is a small fee for them to join and be part of that. It's an annual fee, but they just bring there's a form for them to fill out and they submit it back into me. We kind of go through a little bit of background check of what we're doing and then we turn them on and then we start the process of engagement with them and giving them the access of what they need.
Jamie Irvine:And so that extends the value of these programs from the member to the customer of your member, and they are then able to take advantage of all of that education and get access to all of that.
Curt Westphal:Yeah, they get access to all that and, in all honesty, what it's really doing is it is building a connection and a rapport between that member and that customer like nothing else. Right, we're willing to offer them all this extra stuff, for, I mean, it's under $1,000 that we're doing this for, right? So as you're going through there, they get access to thousands of dollars worth of material that nobody else is offering them. Right, it's that connection that really helps, right?
Jamie Irvine:And, you know, in a world of parts and service, where differentiating yourself is a challenge, yes, I can really see how this would solidify that relationship and, and, um, you know that's going to generate a lot of results for the members. That's clear to me. Okay, so there's also something else, another program that I wanted to talk about, and it's fuse You've got it on your shirt yeah, you've got the logo there, uh, so so tell me what is fuse? How does it work?
Curt Westphal:all right. So fuse is something that we launched here at the show. It's it's brand new. Um, fuse is a national account program that we're starting. So, um, this program is an a way for our members to sign up fleets and give these fleets credit across the HCA Truck Pride Service Network and parts network. Right, they'll be able to go to any of our locations, purchase, make repairs, have any of that stuff done, so they can go get their job done easy.
Curt Westphal:We have members all day long that are servicing their customers. Right, they do it really good. But those customers don't always break down in their backyard. Right, they get out there. So I think it's a great opportunity for our membership and for our network. We've built a very good network in what we have. Yeah, for us to show that to our customers, tell them that, hey, there's other people just like us, these independent stores that are out here doing it, that might be in California when they're from South Carolina. Right, when you're out there, go find this. And we've built a very good locate us to be able to have them be able to find the shop, be able to see the capabilities of what those shops offer. We give them access to the phone number. We give them access to the website and then they go do what they do, right yeah?
Jamie Irvine:They're the ones that sell their service all day long. They're the ones that sell the parts all day long. It doesn't need to be hda truck, right, that's what they do. Yeah, and let them go do it. And when I was selling parts on the aftermarket side, that was always a challenge. If you had a fleet that, uh, did you know more than just a regional carrier and they were going multi-state, they were going nationwide. They often didn't want to just deal with you because you could only help them, like you said, when the truck is back at their location, if the truck was out in the field. So they wanted to deal with somebody who had that nationwide footprint and that was a challenge to compete against the people who did so. What Fuse does is it brings together the 750 parts locations, the 450 service locations across the US and Canada. Do I have that right?
Curt Westphal:It's probably 700 parts. I know it's over 540.
Jamie Irvine:Oh, it's over 500 now. Wow, you've grown since I got those. We keep growing. We're still expanding it.
Curt Westphal:But that service network is huge, right, and we've never utilized it. Let's it and and show what we have out there. We got the network, let's use it.
Jamie Irvine:Yeah, and, and this also is a benefit to all the members, because now that's driving revenue back to HDA truck members Right. So I see that. I see. Well, the these two programs are just a couple of the examples of what HDA truck pride does for its members. If you are running a parts or service business and you think that you'd like to become part of this group, then I highly recommend it. Head over to hdatruckpridecom. We'll include links in the show notes. Kurt, thank you so much for taking some time.
Curt Westphal:I know these shows are very busy.
Jamie Irvine:Really great to have you here.
Curt Westphal:Thank you so much.
Jamie Irvine:I'd like to introduce Jason Rose. He's the field manager, business development manager at Midwest Wheel. Jason, welcome to the Heavy-Duty Parts Report. So glad to have you here. It's great to be here. Thank you for the invitation. So I know when they're at these shows we're very busy. So I do appreciate you taking the time. We just were talking to Kurt about the TSC program and he was kind of giving us an overview of it. One to Kurt about the TSC program and he was kind of giving us an overview of it. One of the things that I wanted to hear was I wanted to hear one of the members and who's enrolled in it themselves and who are using it with their customers. Because I think when you're selling parts and service I know when I was selling parts it is very difficult to differentiate yourself, right? So what would you say? Is the the barriers really, when you're selling parts and service, to differentiate yourself? Why is that so difficult?
Jason Rose:Sure. Well, let me start off by saying Midwest Wheel is a fifth-generation family-owned company. We've been around since 1911. We have nine locations. We've got five in the state of Iowa, we've got three in the state of Missouri. We just opened one. This week we opened the doors to the location in Omaha, nebraska. I saw that. Congratulations, thank you. Yeah, it's exciting. It's exciting to be part of the team too, um, and with that said, we um one of the midwest's largest, uh, heavy duty aftermarket part sellers. Some of the pressures that we feel in our territories, I would say, are pressures coming from the dealerships, okay, from the oe channels. Seems as though they'll put out like out kind of a flash in the pan, a 10-day special on your commodity items your brake drums, your batteries, it could be brake chambers, what have you? Something they can get in the door, get a quick sale and move on down the road. Might be a 30-day special or something like that.
Jamie Irvine:So what you're saying is nothing's changed since the days I was selling parts and they would come in my territory and do that.
Jason Rose:Exactly, exactly so. I think there's all kinds of barriers out there, but for us, I think that is probably the most common pressure point is battling those barriers and it's just being who we are and the trusted advisors that we've become through the relationships that we've built with our customers over the years kind of makes those flash-in-the-pan sales not so painful. I guess, with some of those pressures out there from the dealership who knows what that actual product is that's in the box. We know what we've got in our box. It's been tested, it's been tried and it's been proven and our customers have come to realize that we've done our due diligence and they've come to trust that Right right.
Jamie Irvine:So, speaking of relationships, this has always been a relationship business. I think it always will be, even though we've got a lot of technology transforming things. How would you say that this TSC program that you've been enrolled in really will help you to make that relationship with the customer stronger? Can you walk me through how that actually works?
Jason Rose:Sure, so the TSC program, it's a program designed for our independent repair shops and we have many different customer types your fleet customers, your automotive customers. We've got independent repair shops that work on all mixed model vehicles trucks, heavy duty trucks, of course. So we are selective in who we bring into the program. In our nine locations we have approximately 42 of these repair shops that are in this Truck Service Expert program, the TSE program. It's kind of a working relationship like a partnership between us and the end user, the customer. So for us, the benefit to us is we can maybe bounce some ideas out the repair shop. We've got a new supplier that's coming in. They're talking to us about radiators. Yeah, okay, what's so great about your radiator? We might take it to one of our trusted TSE customers and say you know, can you try this out for us and just kind of do a little demo with it and a trial and error and see where that goes.
Jason Rose:So we learn a lot from our TSEs. That's the benefit to us as well, as we help them grow their business. This is the benefit to them. In that truck service expert program we help them grow their business by offering the nationwide warranty 12 months parts and labor warranty on parts purchased through Midwest Wheel and the HDA Truck Pride Program. Training the HDA University is very, very big. It's an online website over 800 courses. I believe for any of these technicians in these shops that they can log in at their own leisure and take training as well as advertising. So we're really trying to help drive business to those TSEs and grow that business. In return, we ask that we are their first call for parts. Our business grows as theirs grows.
Jamie Irvine:Yeah, now, when I hear you describe all of that grows as theirs grows. Yeah, now, when I hear you describe all of that, I think about how the relationship with those 42 must be extremely strong, because you have to have a high level of trust to be able to go back and forth and work together at that level, right?
Jason Rose:And that doesn't come overnight. Like I said, we've been in business since 1911, so 113 years. People have heard about Midwest Wheel, the shops, the repair shops, the customers that have been handed down from their family generations before them. Midwest Wheel is a trusted advisor for every parts. Call on them. We might get a new shop. That's new. But but somewhere in this new shop, their ownership, their technicians in their background, they've got experience somehow with Midwest Wheel. If it's from you know Grandpa's Farm or you know Dad's Truck Repair Business, whatever it is, there's some knowledge about Midwest Wheel out there and that is extremely powerful. I mean, I can't say that another WD might find it. I don't want to say easy, but the relationships feel from Midwest Wheel. I feel like it's easier to nurture than somebody new coming in off the street.
Jamie Irvine:I guess Right Well and the level of trust that you've built with them, the relationship that you've built with them. That's something that you can't replicate by just coming in with a hot price on a commodity product.
Jason Rose:That's what I was trying to allude to earlier, exactly that, that hot price commodity item. You get the quick sale, um, but at at oftentimes a low, low, low margin which you can't sustain that Um. But at least with the relationships that we've nurtured with our customers, you know we can still. We can still make some comfortable margins and and and still sell some product that we need to.
Jamie Irvine:Right, right. So I guess the last question I have about the program and how it works in your business is when you look just, let's say, over the last couple of years, we've had a lot of challenges, right, probably more challenges in the last few years than maybe the decade or two before that because of everything that's gone on. How would you say that by being involved with these customers at that level, that helps you to navigate that better than maybe some of your competitors?
Jason Rose:We've got the relationships. We've got the communication. It's open door both ways. We can get honest feedback from the customer. What do you see coming down? What's going on in the industry? What do you need from us to be a better supplier for you? Yeah, I guess that partnership is really strong.
Jamie Irvine:Yeah, and then, um you, you mentioned how you've got the TSC program with 42 of your customers. You obviously have a lot more customers than that, so the learnings that you uh get from the level of relationship with them must benefit you with those other customers too, Cause you can say hey, we, we've tried this over here. You can trust us, or you can trust this information because it's been tried over here.
Jason Rose:You're absolutely correct. Yes, we have hundreds, if not maybe even thousands, of customers throughout the nine locations. So, yeah, that TSE program is kind of our front line. We bring in this line of fuel injectors. Yep, we haven't had any problems with them or it's been good for us so far. Okay, then we can kind of spread that success story with the rest of the customer base.
Jamie Irvine:For sure, fantastic, fantastic. Well, thank you so much for taking some time to discuss the TSC program and give us a bit of context. You know, it's one thing to have someone who runs the program give you an overview. It's another thing to have someone who's actually in it every day talk about it. So I really appreciate you taking that time.
Jamie Irvine:Thank you so much Jamie thank you very much for the time. Appreciate it Well. As you can see, this TSC program really checks all the boxes. It helps HGA Truck Pride and its members to stand out as different. It brings their customers and their customers' customers into their business and it puts them in an environment where they are able to share in each other's success and work collaboratively together to be more successful. This is such a great example of the type of program that is absolutely essential if you want to stand out as different in the marketplace. You've got to innovate and think of these things. If you're interested in working with us, don't forget to go to heavydutypartsreportcom and click that consulting button in the top menu.
Jamie Irvine:Now it's time for our last segment. You know what it's called. That's not heavy duty. So in this segment I don't really have a big video clip for you to watch that highlights a specific example in heavy duty of what we want to talk about today, but I do have a video clip that's worth a watch. It's just over a minute long. We're going to play a small little clip for you in the podcast episode, but it's worth going to the show notes and watching the entire video because it really highlights the point. I'm sorry. We're only boarding rows nine and above right now. You'll have to wait.
Curt Westphal:Okay, well, I'm in row 8.
Jason Rose:Please step aside, sir. It's just one row, don't you think it's okay if I?
Jamie Irvine:We'll call you a row momentarily.
Jason Rose:Thank you for waiting. We'd like to continue boarding the aircraft now. We're now boarding all rows. Please, All remaining rows hello, enjoy your flight.
Jamie Irvine:What am I talking about? I'm talking about the sales prevention department in every single business. No matter how hard try, each business has a sales prevention department. What is that? That is policies, employees and culture that make it harder for the customer to do business with you than it really should be. Now some companies have a very large sales prevention department. Other companies have done a good job of minimizing it to the degree possible, but if you are a leader of a heavy-duty parts company, you definitely need to pay attention to this, because over time, you can have policies and you can have a culture that starts to go in a certain direction and on the surface, some of these things might make sense for a specific reason, but they're ignoring how much more difficult it's making for the customer to do business with you, and that just frustrates them and makes them want to go to your competitors. So the last thing you want is to put all this time and effort building these amazing programs and doing all these things to make your company stand out as different and then put a bunch of roadblocks in your customer's way to make it more difficult for ultimately frustrating them and driving them away from your business. Do not do that. That is not the heavy-duty way, the heavy-duty business, especially on the aftermarket side of the business. The independent service channel has been built on this idea of being innovative and making it easier to do business with us and solving our customers' problems, and doing so quickly, because we understand how expensive downtime is and how disruptive that is to the trucking industry. So, especially if you're on the aftermarket side of the business, that's built into your DNA, right. Make the solutions for the customers available, do it as quickly as possible and be innovative in any way that you can. That's the heavy duty way.
Jamie Irvine:Thank you so much for listening to this week's episode. If you haven't already, go to our website, heavydutypartsreportcom. On the website there is a follow button right at the top and if you hit that follow button it gives you the ability to sign up to our weekly email. We only send out one email a week and it just keeps you up to date with all of our new content. And if you also are listening on the podcast player of your choice, make sure you hit that follow button for free, if you haven't already, and it gives you the option. Give us a five-star rating and a positive review. We've heard that this helps with expanding our reach and we would be really grateful to you if you did that. And if you like watching the video version, make sure you hit the subscribe button on YouTube. Thank you again for listening and, as always, I want to encourage you to be heavy duty.