The Paint Spot Newsletter May 2018

Appologies to everyone who has asked me where my newsletter has gone, why I haven't wriiten one, and will I ever write one again. There's very few of you who know why I haven't, and even fewer who know the details. This issue is undoubtedly going to upset people, but, in keeping with "honesty is the best policy", and "whatever it takes", it has to be done. Preface It's certainly no secret that I have always big a big fan of "The Matrix System Automotive Finishes". I have been a dedicated user, a loyal distributor, and literally, "Their National Cheerleader" from day one. Over time, I became proficient in the usage, sales, and application of the entire system. I pushed the parameters on every facit of the Accushade library, and was literally awestruck at the possibilities and versatility. It blew my mind that, as a painter since the late 70's, there could be so many options from one mixing bank. Once I felt comfortable with the entire system, I couldn't wait to share it. I knew how limited and expensive it was operating a body & paint shop with other paint brands, and I knew that the only way to contain the costs was to be "pigeon holed" into one specific segment of the industry. Maybe I'm different, but I've always wanted to do a little bit of everything, not just "collision", and The Paint Spot operates with the same mentality. I liked the idea of "breaking it up", and until Matrix, even though I had the ability to mix paint in house, it seemed I always had to buy "mixed paint" from an outside supplier due to limitations on the system I had. With Matrix, all of the sudden, I had every eventuality covered (with the exception of fleet & industrial). Interior paint (2 options), single stage (2-3 options), base coat (5 options), and custom ( at least 7 options), and last but not least low voc base coat. So, the whole concept of this newsletter came about because I had to share this "Matrix phenomenon" with the world. The newsletter eventually started getting the attention of other distributors as well, which lead to correspondence between us (always friendly). At this point it became shockingly obvious that almost no one knew the full potential of the Matrix System. Fast forward a couple of years, and Matrix, the company, began to eliminate products for "non movement". I knew that what the upper management was seeing as "obsolete SKU's", was actually "uneducated distributors". I knew this without doubt because of my interaction with my distributor counter parts, my interaction with end users, my newsletter, and personal usage of The Matrix System at my own shop "Slix". With the help of a couple of Matrix employees, we put together a couple of educational classes for the "jobbers" and "warehouse distributors", and at the very first one, within the first half hour, I proved my point...........they really didn't know what they had with Matrix! Hence, the elimination of SKU's. Sadly, and foolishly, those meetings yeilded almost nothing. I will forever remember the wasted passion, expense, time I devoted to what I knew to be "right". Stupidly, I assumed that the data captured in those meeting would surely be recorded and handed up to top management within the Matrix organization, but was not. I question now, was that intentional? As a result, a few years and three acquisitions later, the inevitable........................................ BAD NEWS:

Explination: First of all, you are seeing what I saw, "National Rule Toner Discontinuation". The date was 9/01/17, and was "effective immediately". Subject: "Matrix MPB Toner Discontinuation". On Page 2 you will see the list of those "discontinued National Rule Toners". This list effectively eliminated "MPB" COMPLETELY. That, in and of itself, might not have been an entirely "bad thing". After all, with MPB-LV, we still have the same basic thing, but in a "low V.O.C." version........Right? Here's the reality: Toners numbered from "MT-72 down" are basically "single stage" toners. These toners are used in "MSB" (Matrix standard base coat), "RSB" (Refinish Solutions standard base coat), "MCU" (Matrix classic urethane single stage), "MAU" (Matrix acrylic urethane single stage), and "MIS" (Matrix interior standard). Essentially, this internal decision wiped out 75% of "The Matrix System". This decision was made unilaterally, and with zero regard for distribution ("US"), as well as the "end user" (many of "YOU"). In fareness, I will not just show the memo to "Jobber" (me), I will show my initial response back to "them"

I think you get the idea that I was not happy with that memo. It wasn't long before I started getting emails, text's, and calls from jobbers and WD's. I then started hearing about an upcoming meeting. My attendance was pretty much a given, but became mandatory as so many of my colllegues had all but begged me to be go. There was even a pre-meeting with a couple of original Matrix people, that took place at The Paint Spot. I will shy away from specifics and names, but for anyone who knows me, you know I'm a straight shooter, and I'm not affraid to get up in front of anyone and state my case........

So, that's what I showed up at the meetings with folks and I will tell you this..........THEY REALLY HIT HOME ! The "Full Blown" Matrix System is one of two that we work from every day of the week. We also have at least 20 systems just like that in customer facilities (3 out of state). You should have seen the look on their faces when I held that up! It was if they all got a paycheck from Matrix, but they had never seen a complete Matrix System in their lives! The "Fragmented / Canibalized" remains of what's left :( Oh my God! It was as if they had no idea what they were now expected to sell to a perspective Matrix customer, after canibalization! The "Graph" shows The Paint Spots' sales "Single Stage vs. Base Coat, and was current up to the very day of the Houston meeting. It was also in response to several rediculous comments that came from Matrix personell repeatedly over the years........."Single Stage" is all but dead". Little did I know, but one of the speakers had a line in his speech that went like this......."LET'S FACE IT, AINT NOBODY GETTING RICH OFF SELLING SINGLE STAGE".

That line was conveniently missing from his Dallas speech :) Results of meetings "Statistically, acquisition does not fair too well for the Acquired" The meetings were really nothing more than a "Hail Mary" for us, the ones who use, distribute, and made Matrix what it was. The corporate execs rarely reverse a decision, and this was no exception. They don't do what we do, and therefore cannot see what we see........even when it slaps them across the face. It's virtually the same as what you see going on between the Republicans and Democrats at the top of our government. The Republicans were sent there by us (the jobbers, end users, and warehouse distributors), and the Democrats (Corporate execs) are there to push their agenda down our throats whether we like it or not. "If you can't beat em, buy em"........ Versatility, not just price is what staved off (and pissed off) the competition. Through acquisition, they actually welcomed in their demise, but it wasn't acquisition alone, I remember plenty of conversations with older staff, in which they would comment about the need for better and more experienced people. Sure enough, it wasn't long that ex- PPG, Sherwin, Valspar, Dupont, etc. started showing up within the ranks of Matrix, and that's when the opinions clouded their judgement (I have actually heard several of them make negative comments about Kent and his direction). It was as obvious to me then as it is "reality" now.........why else would they have been "ex- employees"? Ironically, the "winning combination" was the original Kent Gardener "misfits" all along.

That's the sad truth ya'll, and I promise you........nobody was more sad to see this happen to Matrix than me. MATRIX IS GONE Summary Matrix had been acquired by "Quest" first. We were told how great it was because they now had more capital, buying power would be better, Matrix would get better......... Prices increased, and Matrix product line decreased. (I remained hopeful and optimistic) Quest was acquired by "Valspar" second. We were told how much greater they would be because they now had more products and capital, and buying power................ Prices increased, overlapping of management occurred, desention amonst the ranks began, and product redundancy lead to confusion. (I remained cautiously hopeful and optimistic). Valspar as an automotive OR a fleet paint was collectively shit, but now they had a winner, Matrix. Surely the would not upset the apple cart. Their only salvation prior to the acquisition was "House of Kolor", and that's why I was cautious. Let's face it, they mishandled the hell out of H.O.K., but surely they wouldn't repeat that mistake......or would they (the "AXE" on Matrix was actually swung by Valspar more than Sherwin). Valspar was acquired by "Sherwin Williams" third. We were told how much greater they would be because now they were the biggest of all. I was personally told by a very high ranking Sherwin Williams person (name witheld) that "Matrix" would be kept intact....... Again, prices increased, products completely disappeared, production shortages and recalls started, container sizes were reduced, etc. (I was "skeptically" hopeful, but 90% sure this was the bitter end of not just Matrix, but much more. Common sense told me this: Sherwin Williams has not been an automotive paint player for many years. It's no secret that the common reference to their paint out on the streets is widely known as "Sherwilpeel" (by the way, their paint back in the 70's and 80's was known as "the cream of the crop", I can atest to their quality). But now, they leagally owed a winner. They purchased the Matrix brand fair and square and it is their right to do what ever they wish with what they now own. For what it's worth, as much as I dislike what they did, I totally understand their decision. Furthermore, if I was in their shoes, I would put a bullet in Matrix and restore the Sherwin Williams reputation of yesteryear using part, if not all, of the winning Matrix data that they now own. Note: As understanding as I am, I cannot and will not be a party to their endeavor. I was loyal to Kent Gardener's Matrix. Moving Forward No doubt, there are some of you reading this that were either uneffected by this corporate decision because you were always unaware of the Matrix versatility, or maybe you bought into only the "LV" program towards the end. To those people I say this: It's too late now to take advantage of maintaining only one inventory and cover so many facits of our industry, so stick with what's left of the "MPB-LV". That's a much safer bet than getting sold on this: "Hey, since we're now so big with Sherwin Williams, Pro-spray, DeBeers, Valspar, and what's left of Matrix, we'll just put one of our other lines in to make up the difference". At this point (and I know some of you poor bastards who fell for this) you are furthering your commitment with the very people who pulled the rug out from under you to begin with. In my humble opinion that equates to "Doing a deal with the DEVIL". I will not trash Pro-Spray or DeBeers (however, they are limited), but let's face it........Sherwin Williams, and Valspar, (exception.... H.O.K.) sucks. Not only that, they are sold "DIRECT", which means you're hurting the warehouse distributors that already lost most of their Matrix sales. That may or may not matter to you, but I'm pretty loyal to the guys who have helped me along the way. At The Paint Spot Here's what I decided to do at our stores I still have a large inventory of original Matrix toners, but due to mfg irregularities (Matrix/ Valspar/ Sherwin Williams) we will not mix a Matrix formula on anything newer than 2013. The colors are not consistant, and this can be tracked back to at least 2014. Below are some actual formulas from my computer (the one I'm typing this newsletter on right now) "accushade version 6.0.0.1" (approximately 3.5 - 4 yrs old. I keep this because I still mix MSB,MCU,MPB,etc). Version 6.0.0.3 from another computer that we use at the other location for MPB-LV, and "Accushade.com", which is updated daily. Same color, same qty, both MPB & MPB-LV. NOTE:

Look at the formulas.........they're all different. This problem has affected both "Color" & "Volume". Interesting thing.........."MSB" formulas match! However, ALL MSB toners have been discontinued.

We will continue the sale of Matrix as long as materials can be obtained, and then we will use "Replacement" toners in place of original Matrix branded toners. At that point we will NO LONGER use a Matrix label, we have our own. Matrix and / or equivalent will be sold primarily as a 3rd level option ( custom matched & mixed, custom paint & candy's, interior paint, and single stage.

It's human nature to always want more, and as much as I've said "a dollar does not dictate my destiny", I'm just as guilty as anyone else when it comes to wanting more. Another of my famous quotes is "good enough aint good enough". However, to sacrifice "a good thing" for purely monetary reasons makes zero sense to me. When it comes to Matrix, it wasn't just "a good thing", it was "a GREAT thing". I stand by all the comments I've ever said about Matrix, and I especially stand by all my prase for Kent Gardener, and past employees I've written about. In retrospect, even though I've heard more recent employees disagree, Kent and his original crew was the best of the best. Exception regretably, Dave Brunori. He presided over the destruction and demise of the legacy known as Matrix, and was paid quite well for his efforts. That statement will generate some degree of hatred towards me for sure, but I'm on the outside looking in, and that gives me the clarity that those who dissagree do not have. I cannot control out of control behavior in anothers business, but I can control it in mine, and at the end of a lifetime I will not look back on The Paint Spot as many will look back on Matrix

I also made the decision to investigate other paint lines as this was unfolding, and settled on "LUSID". Now, some of you know this brand, and some of you are well aware that The Paint Spot and Lusid Technologies have a relationship that goes way back to within a year or so of Matrix. We have had the "Northstar" line for many years and it has not ever failed us! We also have "Globalstar", and use it primarily for specialty applications (proprietary). Back when all the waterborn hoopla was big, we had "Gen 2o", which was hands down the best waterborn I ever used.........I used real water out of my kitchen sink to reduce it, and IT WORKED! The market just never materialized. Over the years Lusid Technologies has done exactly what Matrix has not. They stayed consistant, they made their products user friendly, they added versatility, they kept their prices competitive, and most importantly, they LISTENED TO US! Furthermore, the very distributors that lost Matrix business because of the obsolesence, and who I am very loyal to, have brought in the Lusid lines