Monday, February 8, 2010

Believer or Follower?

We are babysitting our grandchildren in the Orlando area this week. Our Daughter and Son-In-Law are both out of town so we have the opportunity to enjoy and spoil the Grandchildren. There are four of them, all under the age of 7 and keep Grandma and Grandpa going from sun up to sunset. We were able to take them to church on Sunday. They go to classes and we have an hour or so to relax and enjoy the message and worship. Often I catch an idea from the message that carries over to the business world. And that was what happened this Sunday.
The pastor asked if we were a believer in Jesus or a follower. It immediately struck me that this applies to business in a little different way but still as an important point. Are you a believer in the basic principle of business and management or are you a true follower of those principles?
Let me give you a couple of examples. Do you believe your company should make a profit? Or, do you believe your employees should be accountable for their actions and produce a profit for your company? Do you believe a contractor is as valuable to society (customers) as a doctor or a lawyer? Do you believe in providing the customer with “first class” service?
I am quite confident that you believe in at least three of these examples. I find many contractors don’t believe in their own value to society (customers). I work with contractors and techs to help them realize their value to the health, comfort, and well being of society (customers). The other three are areas almost every contractor I have ever met, believe, but that’s where it ends. They believe but they do not follow. What does that mean? There is a huge difference. You can believe in these fundamentals but the real question is do you follow those fundamentals daily in your business? A follower is one who constantly is working at improving these fundamentals. They have a plan and goals. They have check points along the journey to measure their progress. They don’t allow themselves to get caught up in the little meaningless things of the day. They focus on the issues that make their company profitable, sustainable, and customer directed in every area of the presentation to the customer.
Are you a believer or a follower?

Sunday, December 27, 2009

Wish it or Will it!

We are quickly moving into 2010. The start of a New Year is a time that many of us make New Year’s resolutions. We are going to lose weight, get into shape, be more disciplined in following our faith, or kick a bad habit. It’s a time to change our ways! It’s a time for new beginnings, a time for improving ourselves, a time to make the New Year even better than the last year. We takeoff with a wish to change and many of us don’t have the will to change and the result is we fail. By the time February comes, the new exercise equipment is gathering dust, the few pounds we lost in the first weeks of January are back as our spare tire, and we still have that bad habit!
The same happens as we start a New Year and make some vague plans to improve our business. We’re going to make a profit this year. We’re going to grow and add a couple of technicians this year. We’re going to get rid of that problem employee this year. We’re going to start saving for our retirement this year, and so on and so on…. Each of these may be the exact thing your business needs in 2010, but my guess is it is the exact thing your business needed at the beginning of 2009 and maybe several year beginning’s prior! How do we get out of this cycle of “Goal Failure”?
Perhaps these ideas will help change the yearly “goal failure” in your business and possibly your personal life. First, the goals need to be written, then they must be very specific, and they must have a time frame for completion. Now for the hard part of the first step, you need to share your goals with someone who will hold you accountable. This could be your spouse or a friend.
Second, post your goals where you will see them almost every day. To paraphrase Earl Nightingale, “You become what you think about all day long”. Seeing the goals continually will keep them on top of your mind and what you think about. Put them up on your wall, on a 3x5 card that you carry in your pocket, on your “Outlook” calendar every day of the year so they come up as you start up your computer.
Finally, I would recommend that you mark your “Outlook“ calendar for a review of your goals every 2 months. Things do change, and you may need to change a goal or two. Who knows, you may be so far ahead of your goal that you need to set a higher goal before the end of the year.
Need some forms for the New Year to help set goals for your business? You can go to our website, www.SayYesToSuccess.com, and go to the “Free Stuff” tab. Near the bottom of the page are several free forms to begin a Successful 2010. Remember “Say Yes To Success in 2010”!

Wednesday, December 9, 2009

What’s up with this?

I keep hearing about all the people who do not have during this difficult recessionary time. I keep hearing about all the programs the government at the state and federal level are telling us are necessary to help those who do not have. I look at the people I know and see how they are giving to those who do not have and something just is not adding up.
A small Bible study group Lynn and I are involved in raised hundreds of dollars just from a handful of families and provided Thanksgiving dinner, Christmas presents and a sizable gift card for two have not families. Church after church, civic group after civic group donated money and food for needy families during the Thanksgiving and into this Christmas season.
Our local PHC association here in Southeastern Michigan raised over $1,200.00 for Gleaner’s Community Food Bank. Additional money was giving by individual contractors to numerous groups who help others. At least five of the companies (there are only about 20 small companies) are having can food drives, giving customer discounts for cans of food and then giving the food to the Gleaner’s Community Food Bank. Literally thousands of cans have or will be given during November, December, and January.
During the Katrina disaster, thousands of people from the Detroit area alone went to Louisiana and Mississippi using their own time and money to get there. They worked tirelessly to rebuild the area with their sweat and love. Many were from faith based organizations and civic organizations. Thousands of others from around the country also made the trek to the hardest hit areas.
None of the folks or companies mentioned are wealth or exceptionally profitable, but they dug deep into their pockets and gave substantially to others with needs. Americans are a giving people when they know of a need. I’m a firm believer in limited government and the spirit of the American people. We do not need additional government handouts and programs. Perhaps we just need a few more Americans to see the needs of this world and get involved. I salute each of you who have given of your time, your money, and your talents. For those who have not or have only done so sparingly, consider doing it on 2010. It could be a New Year’s resolution that will give you a joy and satisfaction beyond understanding.

Sunday, November 1, 2009

Less Calls = More Revenue Part 2

It’s now been over a month since we had the Customer Service Training for technicians with three companies. Some of the training has “rubbed off” but that is only because we have continued the training in house. Training is so important to take an inbound call properly then have the technician follow the steps on the call needed to be successful in completing the call with an outcome that is excellent for the customer, the company and the technician. It’s always necessary to attempt to have a win, win, win situations with each customer. So much easier said than actually accomplished. The company can provide all the tools needed to do this, these would include a well training inside staff, a well equipped truck, a well designed truck inventory, thought out efficient systems within the office, technician technical and customer service training, along with the ancillary materials for the technician. Most companies provide a reasonable effort at each of these. What it really comes down to is the desire and abilities of the technician to go beyond “fixing” the initial called in problem and being a consultant that the customer is looking to for solutions.
I was in Micro Center Computers & Electronics this afternoon and there were dozens upon dozens of customers in the store. Some were there to buy ordinary supplies and others for upgrades to their computers or new computers. The store had an abundance of knowledgeable staff to assist those with simple questions and needs and those with very technical questions and needs. They were consultants. The customers could buy many of the items in the store at other merchants and likely for similar prices, but not the consultant service provided. The store’s cash registers were busy the entire time I was in the store with a line of 15-20 waiting to check out. How do we help our technicians to become consultants and not just fixers or part changers?
I believe it comes down to the things most owners and managers dislike doing. These include role playing, customer service training, coaching, ride-a-longs, and proper hiring. It is a full time job to do these if you have more than a couple of technicians. The results will be amazing if the effort is put into each of these. We work hard to get the telephone to ring and then we don’t maximize the opportunities on each call. The hook lies in the fact that many owners were technicians themselves and have that same built in resistance to the consultant environment. This is the advantage those who come from outside of our industry have when they operate a company within our industry. Are you ready to change?

Thursday, October 15, 2009

Let the Do It Yourselfer Do It

I was checking out the MSN home page this morning, I noticed a disturbing link. It was a link for “How to fix your own toilet”. Immediately I was upset because this is taking work away from contractors. The name of the article was ”Troubleshoot your toilet without a plumber”. One of the web gurus was showing customers how to change a flapper, with links to other articles on how to fix plumbing, electrical, and even some furnace and air conditioning problems. Contractors were losing opportunities to solve customer problems and make a few dollars in the process. Instead, it became another trip to Home Depot or Lowes so the customer can purchase the parts. Then it hit me!
If a contractor had key words on his website like “Do it yourself plumbing” or fix your toilet or repair faucet that it could attract the customer to his site. The same idea could be applied to an HVAC company or an electrical contractor. Of course, he would have to have the content in the website for Google and other search engines to give him higher ranking but a few pages of content developed by the contractor could easily be written and posted to the site. With may fixtures, faucets, electrical items, furnaces and air conditioning becoming more complex with more and more unique parts, the customer may find it necessary to contact that contractor to ask questions or even schedule a service call. At this point, the perceived value of the repair is greater because the customer has a greater understand of the repair and may have tried and failed at the repair attempt.
Let’s face it, on a small repair it is very difficult to charge the customer the “right” price and show the value provided. Most of the complaints I remember receiving were related to minimum calls or low billing calls and the value a technician was able to provide. I’m not saying we should give up on these calls, but a toilet with a reasonable quality working ballcock, shutoff valve, good seat, and without cracks does not leave much else for the technician to sell on the call unless he does the whole system inspection. Even then, there may be little to offer the customer as additional services so the call can become a low billing and a low profit to the contractor. Perhaps our marketing and focus should be on calls that provide a higher ticket and are often easier to provide the perceived value.
By having the go to website and the email or telephone answers for the customer on minor repairs, your firm could become the go to firm for all repairs. In the crowded marketing arena today, a contractor must somehow find a way to be the customer’s go to firm. Another way of thinking.

Monday, October 5, 2009

Less Calls = More Revenue Part 1

We recently completed 7 weeks of technician customer service training. It consisted of 6 two hour classroom sessions with homework each week and a video taping of the technicians practicing their interaction with a customer. The customer in this case was another technician. As I reviewed the results of the class evaluation from each of the technicians and the owners, who were required to attend the training, the comments varied widely. Some really enjoyed the training and videotaping and others did not like the classroom sessions at all. This is where it gets interesting.
When I met with the company owners two weeks after the sessions ended, and ask if there is any change in the performance of their technicians, I got some interesting answers. Those that did not like the training were performing about the same as they had done prior to the training. Those that liked the training were selling more on fewer calls! It seems that there was a direct correlation between the attitude of the technician and the change in their performance.
Should this surprise us? I don’t think so. With today’s customer, the old attitude of you should just be happy I showed up to fix your plumbing (furnace or electrical issue) just does not work. The importance of exceed the customer’s expectations is what is necessary to develop the long term “love affair” with your company and therefore spend more with your company.
The long held thought in our industries was that we hire a new technician on his or her technical abilities alone. We need to get the job done therefore hire someone who has at least xx number of years experience, and worked for another company we respect. Today we might even do a drug test, a physical and a criminal background check. But we ignore the personality and attitude of the potential new hire. I’m not saying these things are not important, but we need to look further. We need to be testing for attitude and personality prior to hiring. An individual with an open mind to change and growth, and reasonable technical skills is much more of an asset to your company than the super technical technician without the ability to grow and change. Rethink your hiring and advancement criteria and look at adding personality and attitude testing before you hire another mediocre technician and hire a potential asset. Less calls can equal more revenue.

Monday, September 28, 2009

Three Ideas

Lynn and I just returned home from Nashville, TN and the annual Comfortech seminars and product show. Comfortech is an excellent opportunity for contractors in the HVAC field to learn and see what’s happening in the industry. There were many new and innovative products and services at the show this year. Some of these included an attic insulation program put together by Owens-Corning, a heat pump water heater from Rheem/Ruud, several customer contact companies, and a new line of heavy duty tool bags, to name a few. The seminars varied from okay to excellent with three topics that stood out in my mind.
The first topic that really hit me was social networking via the internet on sites such as Facebook, YouTube, and LinkedIn. The world of marketing may be quickly changing with customers looking for products and services from friends and acquaintances though these types of sites. The advantage to the contractor is the cost is almost completely in time, not dollars. Most of the sites are free or just a few dollars to have the access you will need. To make the most of this new network, a contractor will need to spend several hours a week to keep their “walls” and other information up to date. Many of us over 40 (I’m well over 40), will have a more difficult time setting up and keeping up with our sites. We are not familiar with this new medium of communication. If you have children in their teens or twenties, they are probably active already in this arena. Will our “typical” customer use this newer form of communication? Well, one of the fastest growing segments of social internet networking are the over 40 crowd. I would suggest you take a strong look at this change in customer habits.
The second topic which received a lot of attention was ongoing connections to customers by establishing a broader base of maintenance agreements. In the Detroit area, where our business was located, maintenance agreements were not a strong service offered by HVAC or plumbing contractors. In the last decade, that has changed. The push by utilities to offer breakdown insurance and maintenance on appliances, furnaces, air conditioners, and hot water heaters has caused the sleepy contractor community to wake up. With the heating season upon us, it is time for every contractor to set a goal to increase their number of agreements, get renewals, and provide the service the customer is expecting. It is time to closely look at renewal rate, monthly billing, 100% follow through on providing the service checks, and follow up customer satisfaction systems.
The third topic that really hit a nerve for me was branding. I’m not totally sold on the idea of having an in house line of equipment, but I am totally sold on the idea that each contractor must have a unique brand that differentiates their business from the others in the market. There are hundreds of white vans with some lettering on the side traveling through neighborhoods daily. Most do nothing to add to a potential customer’s knowledge, or awareness of that contractor’s business. Most contractors have uniforms which look like every other company’s uniforms, most companies use booties, carpets, and have the company name on the uniform. Many companies have customer service people who are reasonably pleasant and helpful. So what are you doing to leave a unique impression on each customer you touch or instill top of mind awareness in a potential customer? Every owner and manager needs to spend more time in developing these strategies and customer focus for their company and less time with vendor salesmen, the minor stuff others can handle or solitaire on the computer.
What to begin your change, contact me at Dan@saYesToSuccess.com.