Posted by Linda Chambers on Fri, May 18, 2012 @ 09:51 AM
Everyone knows the way to build a business in through loyal customers, repeat business and referrals. But how do you know you will get these when you first work for a new customer? Here are eight ways to make it almost full proof.
1. Be a knowledgeable professional. Customers tend to trust contractors that are serious about the work they are doing. Demonstrate that you have a deep understanding about the industry and the special needs of the work entailed. This can be shown by certifications, being a member of organizations or associations that are linked to your particular job set.
2. Be yourself and personable. No one likes to feel they are being given a sales pitch from a used car salesman or manipulated into buying something they did not want. So instead of talking like a salesman, simply speak to them like a friend or colleague by just stating facts, letting them guide the conversation and make the final decisions with you only supplying suggestions and answering questions.
3. Be curious about the customer and value the relationship. People are drawn to and remember others who show true interest in them. Notice things that can become points of the conversation. Make notes of the points discussed to include next time, a crucial element of relationship building. You both must believe that you honestly have something of value to offer, to the customer and the business relationship.
4. Be consistent. A customer must build trust that you are going to do what you say and can believe it will be the same over time. Once a customer can predict your behavior, they are more likely to trust you and recommend you to others. This is why it is so important to only say what you know you can deliver.
5. Seek and say the truth. Trust comes when the customer feels you are working in their best interest not yours. Make it a point to discover areas where you can give them what they want or could need but never be afraid to tell them when something is out of your normal scope of work and may be better performed by someone else.
6. Have a real dialog. As mentioned before every discussion should be a conversation, not a sales pitch or lecture. Spend at least half of the time listening to what they need, want and are expecting for the results. Make sure that most of the conversations are about the business at hand and not just mundane chit chat, about the weather, etc.
7. Keep an open mind. You may know absolutely that this customer needs what you can provide and the exact best way to do it, but the customer may think you may be self serving and close minded about other options it they have reservations with your methods. Be willing to concede that there is more than one way to skin a cat and if they can not be put at ease with education about your processes, be open in telling them that they may be happier with someone else doing the work for them. They could sense you may have their best interest at heart and proceed. But even if they don't it is better to have a 100% satisfied customer who will work for you, than a dissatisfied customer that was left feeling slighted hindering your future business.
8. Show integrity. Take a stand for your company, even when it may be unpopular with your customer, but you do not have to become adversarial. Make decisions based on what you know that is right and legal. Do not do something for a customer you know is not kosher. And as stated before, never say you will do something you can not deliver.
Trust is only one part of the business customer relationship, but once gained it will help to improve your business ten fold. You must of course also have a service the customer wants and needs and will want to ask you to perform again for them and others going forward.
Posted by Linda Chambers on Thu, Apr 12, 2012 @ 09:55 AM
A few weeks ago we are introducing our new line of 10 pound containers of powder products at the Pressure Washing Seminar held in Albany, NY.
These 10 pound containers have a re-sealable ratched lids which makes them easy to open and use only what is needed to be mixed at one time. Each container holds 10 pounds of powder and an 8 ounce measuring cup. The products that are going to be available so far are:
"So Safe" Wood Wash, a "Hard Surface Cleaner", a "Stripper" for paint and stain, a "Wood Brightener", a "Truck Wash" and a "Uniform Detergent".
These unique containers allow even normally hazardous products like stripper and sodium hydroxide truck wash to be listed as a DOT ORM-D (Other Regulated Material for Domestic transport) consumer commodity that ships just like a non hazardous item, thus saving the customer from higher Hazmat fees.
Even in these small amounts they are concentrated products. Each 10 pounds canbe mixed to make between 20-50 gallons of solution for cleaning. The Uniform Detergent can wash at least 80 loads of greasy dirty work clothes so clean you will want to use it all the time.
Most of these run $50 per unit, $40 for the uniform detergent, and for a limited time are being offered at $10 off each pail. Because of their low weight and non hazard shipping classification the cost to ship these in small quantities via UPS Ground average around $10 a unit as well.
For more information, to be sent individual data sheets or to order please call us at 1-800-762-7911.
Posted by Linda Chambers on Mon, Apr 09, 2012 @ 08:00 AM
For the kitchen exhaust cleaning contractor almost any cleaner you would want to use on the market today will be based on one or the other of these chemicals, or be a combination of the two.
You need to understand their differences, pros and cons to be able to best choose a product to fit your needs.
Sodium Hydroxide (NaOH) and Potassium Hydroxide (KOH) are almost interchangeable. They are the most chemically similar of the hydroxides. They are both a white, strong alkaline, corrosive solid or powder. Sodium Hydroxide is more commonly known as lye or caustic soda where Potassium Hydroxide is known as potash.
Both are used to change fats into soap in a process called saponification. Even though their solubility in room temperature water are about the same, products made with potassium hydroxide exhibit a greater solubility especially as you increase the temperature of the water. Like all strong bases, the reaction of both Potassium Hydroxide and Sodium Hydroxide with water is strongly exothermic, in other words, they generate heat and give off hydrogen. But the reaction with Sodium Hydroxide is slightly more exothermic which can make up for other more positive factors that Potassium Hydroxide possess.
The biggest difference between them is in cost because of certain factors; such as their production process by electrolysis, where potassium chloride costs more than sodium chloride (table salt), in ton quantities potassium hydroxide is about three times more expensive than sodium hydroxide.¹
At the molecular level, potassium hydroxide is also slightly smaller than sodium hydroxide, therefore it can penetrate oil molecules faster than sodium hydroxide thus breaking the oils hold on surfaces quicker and since they are also more soluble can be rinsed away easier, especially when using hotter water or steam equipment.
If you are needing to clean a metal surface that is coated with a hard baked on oil or grease, you would prefer to use a potassium hydroxide with a hot water rinse. Where as a coating of thicker or soft oil or grease could be cleaned by using a sodium hydroxide for less of a cost with lower temperature water required because of the better exothermic reaction.
Using a product which contains both chemicals is like getting the best of both, you will be get a lower in price product with a better exothermic reaction than with Potassium Hydroxide alone, but you will have a faster penetration and better rinsing product than if it just had Sodium Hydroxide.
¹http://www.ehow.com/facts_6150994_sodium-hydroxide-vs_-potassium-hydroxide.html
Posted by Linda Chambers on Mon, Mar 26, 2012 @ 09:38 AM
It was another great show this year in Louisville, KY. We again were a sponsor of Big Rig Networks MATS 2012 Sweepstakes.
Our first winner on Friday of 5 gallons of product was Keith Sermon from Louisville, KY who is a driver for Landstar.
Then on Saturday winning 5 gallons of truck wash was Chris Fowler of Jackson, MO.
We enjoyed being able to walk around and visit will all the freight companies at MATS there looking for drivers. We hope to better reach new Owner Operators through the companies they work for instead of exhibiting in a booth and trying to talk to drivers one on one.
MATS truck wash specials will still be available until April 30th, so call us if you would like to try a 5 gallon of one or more of our great truck wash products.
Posted by Linda Chambers on Mon, Jan 16, 2012 @ 10:31 AM
With this month being National Financial Wellness Month I asked a friend of mine Mr. Don Schwerzler for an article that addresses an issue that all small family business owners should hope to face, succession planning. Here is his article:
Succession Planning:
Who needs it? And when do you start?
BY DON SCHWERZLER
Founder, Family Business Institute, Atlanta GA
Mercer Dye designs general aviation facilities such as hangars, industrial buildings, and some really good-looking airport terminals. He first began working with his father in the construction business in 1975. An art major in college, Mercer had already tried his hand as an artist for a couple of years before his wife “advised” him to get a real job. Mercer relented, but not so reluctantly, because he genuinely enjoyed working with his father. The two of them landed significant construction contracts with Delta Airlines and Hangar One, among others, and the business grew like crazy. Throughout the 80’s and early 90’s, father and son rode a wave of prosperity in general aviation, and in 1993, Mr. Dye retired and left the business to his son. Mercer changed the name of the business from Dye Construction to Dye Aviation Facilities to reflect his new focus on design and consulting. Today, he’s recognized as one of the best in the field.
If ever there was an example of a smooth and easy succession, the Dye story is it. The father establishes the business, brings his son in early and retires while he’s still active enough to pursue his passions. The son borrows on the father’s corporate relationships and track record to market his new direction – a new emphasis that suits his artistic bent and his personality. There are no other family members involved and the succession from one generation to the next was a walk in the park.
But then there are those other family businesses where the succession story better resembles walking through a minefield. When a business ages, and the number of family members in the business swells, succession issues will mount and threaten the well-being of the company if not addressed early enough. Consider the case of a 50-year-old manufacturing company in the southeastern U.S. The patriarch and founder of the business died when he was 78 and left control to his wife, who at 93 years old has outlived many of her children and even some of the grandchildren. She still has the largest office and the final decision. All around her in the corporate offices and out in the plant are thirty-plus children, grandchildren, cousins, nieces and nephews… all part of the business and all pretty sure that they deserve a piece of the pie. Succession issues in that company are a dominant part of conversation at every gathering – business and family. Lines of leadership are fuzzy and people outside the business – including clients – know there is trouble inside the business. You could easily say that succession planning in that company is long overdue.
Issues that arise around succession can get out of hand even when they are addressed early on, but much more so when they are left to sort themselves out for too long. Every family-owned business is different and succession planning is not a perfect science. There are many different dynamics and complexities to consider and there are no guarantees for making everyone happy. But successful succession planning is not an impossible task, and it doesn’t have to split families apart. There are advisors and counselors who can make sense of mayhem and guide companies through the process, no matter how large the family or how long they have waited to get started. But waiting too long to get started can most definitely exacerbate problems.
So when is the best time in the life of a company to begin the succession planning process? A good argument could be made for beginning on the day the company is incorporated. But that is rarely done, of course. In the early days of a business, owners pay most attention to growing the company and give little thought to succession. It’s just not on their radar screen. Typically, the first thoughts about succession occur when children reach their teens and consider or begin working at the company – or when the owner gives serious consideration to retirement.
Knowing exactly when to begin the succession planning process is perhaps a matter of instinctive timing, something that entrepreneurs are good at in other areas of the business. Timing is what usually makes an entrepreneur successful in the first place… knowing when to enter the market, when to build capacity, when to borrow, etc. Knowing when to seriously pursue development of a succession strategy is something entrepreneurs will intuitively know and feel at some point in the company’s growth.
A good case in point is a very successful cold storage and shipping company in Jacksonville, Florida. Paul and Julie Robbins are a husband-wife team who founded Caribbean Cold Storage in 1993. Both worked in different capacities in the shipping industry before they discovered a niche and began providing a full range of refrigerated shipping and materials handling services. Paul capitalized the business by selling his Harley-Davidson motorcycle for $10,000 and borrowing another $7,000 on a credit card. It was a risk, but the Robbins saw an opportunity and followed their instincts to quick success. Within eight years they were honored twice as Inc. Magazine’s No. 1 fastest-growing inner-city business.
During their first few years of meteoric growth, Paul and Julie were focused on the business without giving a lot of thought to succession. Julie’s sister and brother-in-law have been in the business for years but it wasn’t until Paul’s son by a previous marriage and Julie’s niece entered the business that Paul and Julie “felt a need” to pursue development of a succession strategy. The couple also has a son, Zachary, who is only eight but already considered a part of the long-term plan.
“Ultimately, we would like to set the stage for Zachary to come into the business,” Paul says. “But the younger ones are already coming up. Kelly (niece) and John (son) are both active and want to stay in the business. That’s what got us started thinking about succession. I’m very happy with where the business is today, but we have to plan our next stage of growth and succession planning is a big part of that.”
Both Paul and Julie have passions outside the business. They love to travel and play golf, and they enjoy being together because they are also best friends.
“It won’t be hard to let go at all,” Paul says without hesitation. “The first emotional curve you go through as an entrepreneur is that it is my baby, but you have to realize that you started the business so that eventually it would create wealth, a balanced life, and financial freedom. We have created a culture here but we have also created value. The company is operating at a level that I’m comfortable with. I see bigger and better things for it but I’m not the guy to take it to the next level.”
In other words, Paul Robbins feels the timing is right to begin sewing up a succession strategy. Like his other business instincts, this one seems to have all the ingredients for success. Without realizing it, he is meeting all the criteria that succession planners and counselors recommend. He did not wait until the last moment to develop a plan. He did not assume that the children will take over the business and has made certain they want to be there. He has not been secretive about the company’s future plans. He understands that succession planning is complicated and that the succession process is more important than the succession plan. He has brought in outside expertise to guide the family and the business through the process. And, he and Julie are giving a lot of thought to their retirement years.
It’s never too early to begin succession planning, but in most cases, an owner will know intuitively that it is time to kick it into high gear. It just feels like the right time to get started on that next stage of the company’s life and plan for the passing of the baton. In Paul Robbins’ case, he looks forward to stepping back from the primary operational role in the company and taking a more visionary role. That doesn’t mean he loses his entrepreneurial spirit; in fact, it has already opened the door for new ventures.
“I’m already involved in a start-up technology for our industry that will be as revolutionary as Microsoft was in computers,” Paul says. The technology, actually a gel material installed in the ceilings of refrigerated containers, enables shippers to maintain the temperature of cold or frozen cargo for five or six days without mechanical refrigeration. “We’re in the process of funding it and taking if from a virtual to an operating company. We received the patent on July 6 and we have a 5-year plan that is being circulated to investors.”
So who needs succession planning, and when should you get started? The answer, of course, is that every family business can use it and the sooner the better. Companies that wait until a catastrophic event (death of an owner, for example) forces change in leadership will find themselves operating in a disruptive environment, and that’s never good for business.
In the final analysis, like a lot of other decisions in family owned businesses, starting a succession planning process will probably be an intuitive, gut-level decision. And in most cases, that’s the way it should be.
I thank Don for his words and his cases that he brings to us in this post. This and other valuable information can be found on his web site http://www.family-business-experts.com.
Please check it out to learn more.
Posted by Linda Chambers on Wed, Jan 04, 2012 @ 10:13 AM
I know this week is bringing record cold temperatures, but for many so far this winter has been very mild and is causing some contractors that normally close up shop during the winter months to find their phones ringing off the hook with business.
A Minnesota contractor for example had to call to get an emergency supply of soap to him for a new job. He told me "It is unbelievable that we have zero snow on the ground and we have had only one good snow here that stayed more than 3 days since November." He also stated "I haven't had work in January for years." Minnesota is experienced its third driest autumn on record and possible drought conditions may develop in 2012 due to it, indicated by a NOAA report just released.
This warmer than normal, no large snow fall is also putting a damper on the contractors that switch in winter to other lines of work, like snow plowing, ice dam removal and other cold weather jobs. Most of the West and North East is having record low snow amounts while places not use to so much of the white stuff like Arizona and Texas were getting recording setting high levels. NOAA stated that during November only 4.4% of the country had snow on the ground vs. the normal >10%. The only area to have above normal levels in 2011 was a small area over the intermountain West.
Also that the North East had above normal temperatures with MA, RI and VT having their warmest autumn on record. This caused the normal to above average amount of precipitation to feel like a unending rain storm. A customer in Boston that I spoke with back in end of November said his business was down almost by half since September because they were not having enough clear days to do the work they had scheduled, not due to lack of work.
Let us know by your comments here or on our facebook page as to how the weather effected your final quarter of the year and what you think the Spring of 2012 will bring.
Posted by Linda Chambers on Tue, Dec 20, 2011 @ 09:34 AM
During this month of Business Planning in December, we will take a look again of how to use a customer referral program and how to analysis its progress or failure. I know this will be a long post, but please bear with me.
First of course is to all ready have a referral program in place. Next if you have been using more than one type of reward or style of gaining a referral these must be segmented out.
Next you must count the number and type of responses you got from these referrals and how much you monetarily gained from each type.
Once you have this data you will be able to make predictions for the coming year and institute changes that could improve your results.
Let us take the following results as an example to be able to follow how a referral evaluation might be done.
Say company ABC PowerWash serviced 250 customers during the past year.
Of those 250, 200 where residential and 50 commercial. And of the residential 75% where repeat customers from some time in the last three years 45% in the last 12 months.
And with the 50 commercial customers half are contract customers that you see on a monthly or at least on a quarterly basis with the rest being new or only the occasional once or twice a year customer.
Of the 200 residential customers only 20 (10%) participated in any kind of referral program the entire year: an average of 5 per quarter.
10 handed out your cards and got you 16 new customers from them, with you giving your old customers a $25 credit card gift card as a thank you. Total spent in gift cards $400. Say these 16 jobs brought you an average of $800 per job with a 20% profit that would have been $2,560.00. Thus it cost you 6.4% of your profit to get this work, 2560/400= 6.4. Or 2560-400=2160/16=$135 profit per job.
Now in the next few months (90 days) if you tested out a new incentive offering half of your customers a $50 card instead of the $25. If in this case you saw an increase in the number of booked referrals from the higher card offer you would be able to see if the amount of increased business was worth the expense.
For example you offer the next 20 customers (10 of each offer amount): 2 customers got you jobs at the old $25 rate but 5 customers (1/2 of those offered) got you jobs at the higher $50 per rate. Leaving the average job cost and profit the same let us look at the numbers.
2 x $800 = $1,600 x .20 = $320-$50= left you $270/2 or $135 per job for your profit. The same 6.4% cost of return that you had this past year with this same offer. Now let us look at the referrals offered at the higher card amount.
5 x $800 = $4,000 x .20 = $800 / $250 card cost = or 3.2%. You might think that was better but look at the total profit per job, 800-250=550/5=$110 profit per job after paying out the cards. But did you lose in the long run? If you go with the set amount that only 2 out of every 10 customers will take the $25 card and give you a referral, that means you will miss the other 3 at the $110 profit for each.
You need to figure out if those potential three new customers a quarter that will cost you the extra $25 per job in profit at the initial job is worth it to you. Could be if you have lots of open time and you need that $330 cash flow for your family. Plus if they become a returning customer or better yet become a free word of mouth referer. So you increased the number of old customers that participated from 20% to 50% but did slightly reduced your profit per job from the year before for these initial jobs with the higher offer.
Now let us look at the other 10 residential referrals from last year that you had. 6 had given you names of a friend or family member that booked a job because you offered them a free service on their next years business (they had turned down the $25 card offer prior to your $100 offer), that was to say, you offered them what you would have normally charged a customer $100 for (but costs you $40 to provide) to be free at their next visit.
Again let us use the same average price and profit for these jobs. So 6 jobs x $800 = $4,800 x .20 = $960 / $240 (the actual cost to you) = 25% of the cost came out of your profit. This looks like a much larger cut out of your profit, but look at the profit per job, 960-240=720/6= $120 profit per job. It is actually better than the $50 gift card, since the out of pocket expense is $10 different, $40 vs. $50. While you might think giving away free services wouldn't be smart you can see it could be better on the bottom line by bringing you more work. But since they had already turned down your $25 card offer for the free service is this offer of free service something you want to keep? No real way to tell.
So as stated earlier for the next three months you offer half your customers the $25 card and the other half $50 gift card and don't make the $100 free service available at all and you still got the 5 new customers. Since you have no idea how many of these 5 (or more) you would have gotten if you had kept the $100 value offer you will just have to use the ROI of $110 per job as the result. Your next 3 month test may have to be the $50 card vs. the $100 free service offer.
Now to the last 4 referrals from the previous year. These where from customers that you had not given any incentive too (maybe you had already given them a great deal, or the job was very small and you did not want to invest any more of your profit into them) but because of your work they had referred new customers to you any way, six in fact. So the cost of a referral program was nothing, and profited you $960, but these customers consisted of less than 2% of your total client base, which is the national average of unsolicited word of mouth referrals.
Now to the commercial jobs. Of the 50 as stated above 25 are contract customers that get special pricing and you gained only two new customers as direct word of mouth referrals from them. Both were non incentive referrals since there was no incentive referral program in place for the commercial customers. So the profit you gained from these new customers was say $3,000 total for the year. Of the other 25, 12 where occasional customers which brought you no referrals and next 11 where new ones you had spent time finding, visiting and getting yourself at a cost of over 50 man hours during the year. The final two were the new referrals your contract customers brought you equaling your 50 total commercial customers for the year.
So let us say you are thinking about expanding your referral program in to your commercial side to see what could be the benefit. You also choose to try the $50 gift card as your incentive. In the next three months this was your result: of 12 customers offered, you got 2 new referrals, one being a new contract customer and the other will probably only be an occasional once or twice a year job. Already you have gained the same number of new referrals that you got in total the previous year. If the one contract customer will give you a profit of $200 per month and the occasional job bring you and estimated $550 of profit for the year you gained 12 x 200 = $2,400 + $550 = $2,950 / $100 (gift cards) 2.9%, or 2950-100=2850/13 (jobs)= $219.23 average profit per job. And since the previous year you only got the two new contract customers by the free word of mouth method you can look at the $3,000 they brought vs. the estimated if the trend holds of 2 new customers a quarter to bring in around $6,600 over they year. 12 + 9 + 6 + 3= estimate of 30 jobs x $220 average profit = $6,600 estimate. This could be over twice the amount you received with no referral plan in place. It could be more or less depending on when they come on board and if they are monthly or only an occasional customer. And if you can handle the increase in your work load.
I hope these examples has you looking over your referral plan and running tests to see what profit increases and improved cash flow you can make this next year in your business. Happy New Year.
Posted by Linda Chambers on Thu, Dec 15, 2011 @ 08:30 AM
Do a Competitor Comparison Chart to see where your business stands in your market.
First list who your competitors are by name and address. Do they compete with you in just one area, for just one service or type of customer? Do you only have competition with one other business for one service by five for another? You might want to switch your service emphasis more to the one with less competition for a possible larger profit?
Not all of you competitors may be easily recognizable. They may not be listed in the yellow pages, have a physical office, or even have applied for a business license that you can reference.
Look in your own mail for coupons for those advertising to do your services, keep your eyes open for signs, vehicles, other print advertisements. Check on line by doing a search by service name and location name. For example: "Roof Cleaning" + "Snellville, GA". I just did and got over 4,000 results, basic "pressure washing" was even higher, 6,780. But more specific services like "exterior house washing" + "Snellville, GA", got only 49 results. So who's name keeps coming up? Those are your competitors.
Just because some may be small does not mean that they are not a threat to you. Nor does the fact that your area might have some big players mean that there is not enough business for you all. What you need to find out is what each player is doing so that you can do it better and gain a larger and hopefully a more profitable share of what is out there.
Here is an example analysis grid. Make changes to headings and cell sizes as needed. For example: Many may not need a selection row. Fill out the me section to compare. You may also have to break down some cells in to sub cells, like "Service" in to multiple services. You might also first fill in what the competitors have to be better able to fill in ours to match "apples to apples". Do not be afraid if you find that you have something no one else does. That may not be bad at all but in fact a great marketing and value point for new customers.
Table 1: Competitive Analysis
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After you finish filing it out you will have a better understanding of who your competition is, what a customer may see in them and how to improve your postion to these customers to gain their business.
Posted by Linda Chambers on Thu, Nov 03, 2011 @ 11:50 AM
We are starting out November asking the users of our most popular truck wash product "Brown Derby" to send us comments, testimonials, before and after photos, results you made happen for your clients and even video clips telling us what you like about using Brown Derby.
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And as appreciation for the responses, we will offer up to 20% off product costs on your next order placed before December 31, 2011. Good on any of our products not just Brown Derby. This offer of course can not be combined with other customer discounts or used on shipping. Amount of discount will vary between 10-20% depending on the amount and type of the response.
We hear all the time from our customers that they love using Brown Derby but we would like to learn specific information, a detailed account and results for clients so that we can use them later in promoting this great product.
So if you have used "Brown Derby" in the past or are using it now, weather you bought it directly from us or even just through one of our customers, go to http://bit.ly/BrownDerbyStories and tell us your Brown Derby stories.
Posted by Linda Chambers on Mon, Oct 31, 2011 @ 10:53 AM
As we mentioned in our last post the Power Washers of North America was set to have their annual convention in Nashville, TN and it was a great success. We introduced four new products, held booth drawings, donated two $100 product coupons as door prizes and two cases of our new Dyn-O-Coil as auction items.
The PWNA hosted almost 100 contractors from all over the country, even as far as Hawaii and over 12 vendor exhibitors at the Hotel Preston. Although the weather was cold and gloomy the accommodations were well received and did not require that anyone leave the hotel during the entire event. Which was convenient because the time was packed morning to night with courses, learning sessions, snack and chat lunchs, and trade show vendor times. There was even a special cocktail hour, award event and following meet and greet Saturday night.
If you are a contractor and are not a member of the PWNA you should really think about joining The PWNA.
Here are a few shots from the event:
