tony silva`s amazing turnaround tony silva`s amazing

Transcription

TSC_Spring_08:A_TSC_Fall_06
ARE
YOU
4/9/08
REALLY
2:22 PM
Page 1
COMMITTED
TO
SATISFYING
CUSTOMERS?
SPRING 2008
The magazine of winning
business strategies from
today’s most profitable
independent contractors
Charged Up!
How Kerry and Scott Adkins
Reinvented Their Electrical Business.
CLOCKWORK HOME SERVICES, INC.
P.O. BOX 18567 • TAMPA, FL 33679-9841
PRSRT STD
U.S. POSTAGE
PAID
CLOCKWORK
HOME SERVICES
PAT R I C K K E N N E D Y J U M P - S TA R T S H I S C O M PA N Y
PLUS:
TONY SILVA’S
AMAZING
TURNAROUND
PREVENT EMBEZZLEMENT
4/9/08
2:22 PM
Page 2
“Honey, I think the
furnace just went out.”
It’s 3 a.m. and your
customer’s furnace just
went out. Are you certain
they will call you?
You installed the equipment, you’ve serviced it
in the past, and now, your customer needs you the
most. So they’ll call you because this is YOUR
customer, right? The sobering fact is only 48
percent of homeowners will call you again. And,
after more than two years, only eight percent will call!
For a demonstration of how the Talking Thermostat works, go to our
web site or call toll free 1-877-428-9629 for more information.
Don’t let your customers go to the phone book!
Install the Talking Thermostat with every install, every service call ... every chance you get. You’ll
lock out your competition and you’ll get the call ... every time! No longer will your customers look
around for labels or stickers, and you can forget about refrigerator magnets, they just DON’T work.
The Talking Thermostat DOES work! With a push of a button, your customers HEAR your company
name and telephone number. Plus, the thermostat can even be pre-programmed to remind them of
system service intervals!
The patented Talking Thermostat has been successfully implemented by HVAC contractors across
the country for years as a sales and marketing system that simply works.
It locks in the customer AND the home to your company for life. It’s your
“Service Call on the Wall” that will generate service calls, leads and sales
during the slow seasons and when your customer needs you the most!
Call BuyMax today at 877-428-9629 and ask for Dave Benson
to learn how this sales and marketing system can increase your company’s
business and stop the dreaded Yellow Pages roulette that
you and the consumers despise. Be certain your customers call you
first by calling us today. www4.talkingthermostat.com
Ad 1
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2:22 PM
Page 3
THE
EDITOR’S NOTE
Creating The
Future
Alabama electrician Kerry Adkins was doing well in
2004 and celebrating one of his best years when he
made the decision to transform his company from
new-construction work to residential electrical
service. Why? And how did it work out? Read his
dynamic story on page 14.
The spring issue also reports on how Canadian
contractor Jim Gregg helped his underperforming
company reach its full potential and talks about the
key things Mister Sparky® owner (and founder)
Patrick Kennedy has implemented to ensure his
latest startup electrical franchise location is
successful.
In addition, this issue will help you gauge whether
you are really committed to serving customers and
learn how to take precautions to prevent your
company from becoming a victim of
embezzlement.
Finally, there’s the incredible story of Tony Silva,
whose never-say-die attitude and new-found
business expertise brought him from the brink of
ruin – and $1.2 million in debt – to salvation.
®
CONTENTS
8
10
14
20
24
30
32
SPRING 2008
Service
10
ARE YOU REALLY COMMITTED
To Satisfying Customers?
Success Story
JIM GREGG REALIZES
His Company’s Hidden Potential
Success Story
KERRY & SCOTT ADKINS
Reinvent Their Electrical Business
Business Startup
HOW PATRICK KENNEDY
Jump-Started His Mister Sparky® Franchise
Success Story
14
TONY SILVA’S SURVIVAL
And Amazing Business Turnaround
Management
NINE WAYS TO PREVENT PEOPLE
From Embezzling Money From You
Franchise News
CLOCKWORK FRANCHISES
24
Expand Into Canada
PLUS! CONTRACTORS MOTIVATE EMPLOYEES TO ACHIEVE MORE 6
COOL TOOLS SPOTLIGHT: MOBILE TECHNICIAN 28
Departments
In today’s rough-and-tumble contracting world, the
most successful contractors don’t just react to the
future, they create it. So what can you learn from
them?
Best,
Tom Ward
Managing Editor
3
5
Editor’s Note
Industry News
4 Ask The Experts
5 Franchise Events
4 Industry Events
The Successful Contractor is published four times a year by Clockwork Home Services,
Incorporated, as a business information and educational service to the contracting community.
Copyright 2008 by Clockwork Home Services, Incorporated. All rights reserved.
PUBLIC RELATIONS CONTACT
Dominic Garvey 941-366-9692
dgarvey@clockworkhomeservices.com
MANAGING EDITOR
Tom Ward 877-390-5849
tcward1@verizon.net
ART DIRECTOR
Dale Novak 877-390-5849
ncs@tampabay.rr.com
ADVERTISING
Julie Novak 877-390-5849
julienovak@tampabay.rr.com
PUBLISHED BY Clockwork Home Services, Incorporated, Plaza Five Points, 50 Central Avenue, Suite
920, Sarasota, FL 34236. For inquiries about any of the Clockwork Home Services
portfolio companies please call (941) 366-9692 or fax (941) 366-9592. To contact the advertising
and publishing departments of The Successful Contractor magazine, please call 877-390-5849.
Visit us on the web at
www.thesuccessfulcontractor.com
A NOTE ABOUT CHANGING YOUR ADDRESS.
For those of you who wish to change, add or delete your address from our list,
please mail your request to The Successful Contractor, P.O. Box 18567, Tampa, FL
33679-8567. Or, you may email us at ncs@tampabay.rr.com.
Please send reprint requests, letters and questions about editorial content to:
Editor, The Successful Contractor, P.O. Box 18567, Tampa, FL 33679-8567.
Publisher reserves the right to reject all advertising material. All unsolicited manuscripts,
editorials, photographs or art will not be returned. Written permission from Clockwork Home
Services, Incorporated, is required to reproduce any part of this magazine.
THE SUCCESSFUL CONTRACTOR ADVISORY BOARD
Jim Abrams
John Young
Terry Nicholson
Lon Cassel
Mike Diamond
Tab Hunter
Rebecca Cassel
Printed in the USA
SPRING 2008 TSC 3
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2:22 PM
Page 4
Ask The Experts
™
PRACTICAL ADVICE FOR THE REAL WORLD
Do you have a question about how to run your
business more effectively, improve your
operations, manage your employees, get the
most out of your training, jump-start your
marketing or maximize your sales success?
Ask The Experts at Clockwork Home
Services. Just email, mail or fax your question to
Ask The Experts, Clockwork Home Services,
Attention, The Successful Contractor, 50
Central Ave., Suite 920, Sarasota, FL 34236.
Email: info@clockworkhomeservices.com
or fax the question to (941) 366-9592.
Q: My new salesman started
out selling like crazy, but now,
he can’t sell a thing even
though he’s gone through several technical training courses.
What can I do to get him back
on track?
– Gary, California
A: This scenario happens pretty often. A
business owner will hire a new salesperson who will break records in the first few
weeks. When this sales champ is starting
out, he won’t have the technical knowledge. He wouldn’t know a dual heat
exchanger if it fell from the sky, but he’s
still selling like mad. How is that possible?
Don’t the best salespeople need to know
everything about the product?
Upcoming
Events
Plumbers' Success
International Summit
August 11-15, Norfolk, VA
866.428.8250
Electricians' Success
International Expo
September 23-26, Dallas, TX
866.695.6544
AirTime Expo
September 23-26, Dallas, TX
866.428.0153
Roofers' Success
International Expo
June 10-13, Los Angeles, CA
866.421.5529
The fact of the matter is that homeowners
don’t buy knowledge or technical expertise. Homeowners buy enthusiasm. A consumer will be more moved by your salesperson’s belief, confidence, and enthusiasm than by anything else. Enthusiasm
beats any technical fact, price, brand, or
other factor. It’s the enthusiasm and confidence of your salesperson that makes the
difference.
Through training, your salesperson accumulated technical knowledge, and probably started to rely on that knowledge too
much. He may have charged into sales
calls equipped with the specs of the systems and ready to tell homeowners how
powerful their new system will be. He may
have overwhelmed them with information,
expecting to be even more successful now
that he knew the lingo.
But after a rejection or two, he lost confidence and enthusiasm. That’s a one-two
punch to any sales champion.
Your mission is to help your salesperson
get his mojo back. You should start by
going with him to his next sales appointment. See for yourself where he might be
tripping up. Does he have the same kind
of enthusiasm and confidence as during
those first record-breaking weeks? Let him
know that each sales appointment is a
unique opportunity to perform, and
encourage him to deliver the best presentation he can.
If you boost his confidence and help him
perform at his best, I’m confident the
record-breaking results will return.
and have a total of nine years
in the business. I’ve heard the
“experts” say the first day you
start your business is the day
you need to begin to plan for
retirement. What exactly does
that mean and how do I do it?
– Michael, Oregon
A: Michael, in a nutshell, this means that
you must think about why you went into
business for yourself and put a plan in
place to accomplish those goals. This
includes maximizing the value of your
company and defining an exit strategy in
advance of your retirement.
You probably went into business to be the
boss and have more control over how the
company was run. Maybe you worked for
someone else and decided you could do a
better job.
You wanted to build wealth, create a comfortable lifestyle for your family, and perhaps provide them with opportunities you
never had. You wanted to have a life outside the office.
But these goals often become secondary
to daily emergencies and the headaches
of running your company. Is it any wonder
that your long-term planning suffers
because you are too engrossed in putting
out day-to-day fires?
Too many contractors put their head
down, work as hard as they can for as
long as they can, and trust that things will
work out to allow them to cash out with a
big payday.
What happens instead is that these con– Terry Nicholson
tractors find that their business is not
Terry Nicholson is group president of
worth what they thought it was … that it’s
Client Services at Clockwork Home
only worth the value of their phone numServices® and president of Success Group ber(s), customer base and asset value.
®
International .
They are forced to keep working long after
they want to retire.
Q: I’ve owned a plumbing
Your goal should be to create a well-reccompany for the last four years ognized brand name in your area that has
what I call a “multiplier effect.” This means
that there is a value that far exceeds the
assets. With the multiplier effect, you create a business that has a long line of people who want to buy it … people who compete with one another to buy it.
Consider what you would look for if you
wanted to buy a business. If you conducted
a study in the service area for a company,
wouldn’t you value a company that was
recognized by 60 percent of potential customers as providing quality service far
above one that was recognized by only 10
percent? Wouldn’t those companies be
worth two vastly different amounts, even if
their asset value was similar to one another?
Your goal in building for your retirement is
to create that kind of multiplier effect
through branding and name recognition,
to establish yourself as the pre-eminent
name in the marketplace.
Many contractors get into the business
because they love the technical side, and
are the least comfortable with marketing
and branding. Since people tend to do
what they love, they spend very little time
building name recognition, creating a
unique selling proposition to differentiate
themselves, and branding their company.
One way we at Clockwork Home Services
help contractors accomplish these goals is
through our franchise brand names in
HVAC, plumbing and electrical service.
Regardless of what you decide to do, don’t
put off planning today for your retirement
tomorrow. Just ask yourself one question
… do you want to be running service calls
on the day you die?
If not, make sure you are creating that
multiplier effect to maximize the value of
your company.
– Tab Hunter
Tab Hunter is president of Franchise
Operations at Clockwork Home Services.
Contractors Head Home With Proven Business Ideas After Expos
Contractors from all over the country shared ideas and success strategies
during the Electricians’ Success
International® and AirTime® 500 Expos in
March in St. Louis, MO.
Afterwards, they returned to their
businesses with proven ways to create
results, along with specialized training
and tools to help them succeed.
For more information about upcoming Expos and other ESI and AirTime
events, visit www4.youresi.com and www4.timeforanewlife.com.
ESI and AirTime 500 are Success Group International organizations.
At the ESI Expo, the Midwest Moguls received a $16,776 check for
improving the most in the ESI Profit Platoon competition.
4 TSC SPRING 2008
(Center) Former NBA player Walter Bond fired up the crowd when he explained
how to find your niche and excel in it – a lesson he used to build a successful
basketball career. Bond spoke during the ESI and AirTime Expos.
(Above right) Terry Nicholson presented Chris Donzelli with the AirTime scoreboard
award for the highest residential sales total by a technician in 2007.
4/9/08
2:22 PM
Page 5
Nuts & Bolts
INDUSTRY NEWS AND NOTES OF INTEREST
Demand For HVAC
Equipment Forecast To
Increase
Demand for heating, ventilation and air
conditioning equipment is forecast to
increase 3.2 percent per year to $16.8
billion in 2011 in the United States,
according to a new study.
Strong gains in new, nonresidential construction and ongoing
growth in the residential replacement market are expected to drive
demand.
Although gains will be
restrained by declines in new singleunit housing completions between
2006 and 2011, nearly three-quarters
of HVAC demand can be attributed
to replacements.
These and other trends are in
"HVAC Equipment," a new study
from The Freedonia Group, Inc., a
Cleveland-based industry market
research firm.
The study also noted that in
2006, heat pumps surpassed warm
air furnaces to account for the largest
share of heating equipment demand
and will account for 47 percent in
2011.
Unitary air conditioners will
remain the largest segment in the
cooling equipment industry,
accounting for more than 70 percent
of total demand in 2011.
Mount Everest high-altitude charity
challenge.
Wilf Dolman, 59, and his brother, Chris, left in March for a threeweek trek to the base camp of the
world's highest mountain to raise
money for breast cancer research and
the North West Air Ambulance,
according to The Citizen in Burnley,
England.
The duo, along with other family
members, completed an expedition
to Mount Kilimanjaro two years ago
to raise money for Asthma UK.
Dolman is the boss of Burnley
Roofing Contractors.
Roofer Heads To
Top Of The World
A roofing
contractor
from England
is headed for
the roof of the
world as he
embarks on a
Clockwork Franchises Set Pace For Record 2008 Growth
Benjamin Franklin Plumbing®
Announces New Franchises
Mister Sparky® Electric
Announces New Franchises
Owners: Richard and Katherine
Rozell
Ramsey, MN #192
Owner: Brad Pete
Forest Hills, NY #202
Owner: Michael Weston
Panama City, FL #203
Owners: Timothy Cain & Bruce
Thacker
Kannapolis, NC #188
Owner: Brian (Keith) Whitaker
Katy, TX #46
Owner: Richard Hodge
Yorkville, IL #62
Owners: Sarah and Chad Norquist
North Pittsburgh, PA #193
Owners: Marty & Jane Pawlak
Cleveland, OH #189
Owner: Brian McDermott
Owatonna, MN #47
Owner: LeRoy Smit
Pearland, TX #190
Owner: Steve Aberle
Omaha, NE #48
Owner: John McCarthy, Sr.
Baton Rouse, LA #64
Owners: Jim Wilson and Carl
Beasley
North Georgia, GA #194
Owners: William Moore, John
Dreggors and Conrad Davis
Hutchinson, KS #191
Owner: Richard Tade
Hampton, VA #49
Owner: Douglas Law
Pawcatuck, CT #65
Owner: James Crompton, Jr.
Alexandria, VA #195
Owner: Chuck Teets
Wayne, NJ #205
Owner: Douglas Loranger
Atlantic Beach, FL #192
Owners: Danielle and Ernie
Capretti
Stockton, CA #50
Owner: Eric Gundersen
Richmond, VA #66
Owner: Douglas Law
Vero Beach, FL #196
Owners: Jim & Laurie Smith
Cold Spring Harbor, NY #206
Owner: John Fay
California, MD #67
Owner: James Farbizzio
Wichita, KS #197
Owners: Richard Tade, Monte,
Luke and Casey McConnaughy
Clarksville, TN #207
Owner: Jeff Davis
Central Phoenix, AZ #193
Owner: Michael Brewer
Great Falls, MT #194
Owners: Paul and Jon Leach
Woodstock, GA #195
Owner: Phillip Miller
Barberton, OH #196
Owners: Timothy Schmid and
Shelby Lee Painter
Woodward, OK #51
Owner: Randy Myers
New Boston, MI #52
Owner: Robert Brierley
Galveston, TX #68
Owners: William and Cliva
Downey
Howell, MI #53
Owners: David and Karla Michael
Somerset, PA #69
Owners: Michael and John Barth
Mister Sparky Indiana #54
Company Owned
North San Antonio, TX #55
Owner: George Saldana
Akron, OH #197
Owner: Jason Rainer
Buchanan, MI #56
Owner: Leslie Roundy
Indian River, FL #198
Owners: Tracy and Troy Harp
Alexandria, VA #57
Owner: Chuck Teets
Bismarck, ND #199
Owners: Marvin and Julie Dahle
Seymour, CT #58
Owners: Kurt & Nancy St. John
Boca Raton, FL #200
Owner: Renato Valli
Springfield, VA #59
Owner: Randy McKeen
Spartanburg, SC #60
Owner: Clint Wittner
One HourHeating & Air
Conditioning™ Announces
New Franchises
Sandy, UT #191
Owner: James Larsen
Carrollton, TX #198
Owner: Lawrence Zemanek
Farmingdale, NY #208
Owner: Al Espisito
Fredrick, MD #209
Owner: William (Carl) Harris, Jr.
Lexington, KY #199
Owner: Darren Birch
Jackson, MI #200
Owners: Gary Schultz and Mark
Cesarz
Caledonia, WI #201
Owner: Michael (Breeze)
Ratchford
E. Richmond, VA #204
Owner: Charles Hodges, III
Blue Springs, MO #210
Owner: Steven Kurtz
Avon Park, FL #211
Owner: Spencer Whitmire
Norfolk, VA #212
Owner: Todd Kletz
Franchise Open Houses & Events
Benjamin Franklin, Mister Sparky & One Hour Heating & Air Conditioning
OPEN HOUSES
Sarasota, Florida
Friday, May 9, 2008
Monday, June 9, 2008
Friday, July 11, 2008
Friday, August 8, 2008
Monday, September 8, 2008
Friday, October 17, 2008
For more information on franchise open houses & events, please contact:
Benjamin Franklin:
1-877-236-2899
Mister Sparky:
1-888-772-7598
One Hour Heating &
Air Conditioning: 1-877-463-6147
Queensbury, NY #61
SPRING 2008 TSC 5
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Motivation
Contractors Jazzed About Focus
On The Future In Las Vegas
Contractor George
Donaldson was so
fired up about Focus
on the Future that
he invited every
employee to attend –
all 101 of them.
Focus on the Future is the largest sales and motivational
event for front-line employees in the contracting industry.
Here, Clockwork Home Services Director John Young
addresses a packed crowd at a past event.
his year, Donaldson’s employees,
T
along with thousands of other contractors, got to see presenter Mike
Ditka, one of the most recognizable
and respected faces in sports.
Ditka joined a stellar lineup of
speakers at the motivational and inspirational event sponsored by Success
Group International® and the
Clockwork Home Services® franchise
groups April 5 at Bally’s Las Vegas.
“Last year, we sent 35 people to
Focus on the Future, and the motivation, excitement and production it
brought to our company was tremendous.” said Donaldson, general manager of three Denver franchises – Mister
Sparky® Electric, One Hour Heating &
Air Conditioning™ and Benjamin
Franklin Plumbing®.
“That was with only a third of the
people going,” he said. “Those who
attended brought the event’s energy to
the people who didn’t go.”
After attending Focus on the Future
last year, average ticket sales increased,
employees were much more motivated
and the company’s culture improved,
he said.
Donaldson built excitement for this
year’s Focus on the Future by holding
contests that let individual employees
earn tickets to the event. Eventually,
every employee was invited when the
company met monthly revenue and
profit goals.
Even though Donaldson invited all
101 of the companies’ employees, only
about 80 employees could actually
attend the event. The companies paid
for their tickets, airfare and lodging.
“Focus on the Future is the largest
sales and motivational event for frontline employees in our industry,” said
Terry Nicholson, SGI president.
“Every one of our speakers shared
an important message that helped
6 TSC SPRING 2008
employees in their jobs and personal
life, no matter who they are or what
position they hold,” he said.
Event organizers carefully chose
speakers who would inspire, motivate
and enhance the lives of those attending, he said.
A prime example was Ditka, known
as Iron Mike. Ditka was the famed head
coach of the 1985 Super Bowl champion
Chicago Bears. In his years in the NFL,
Ditka brought numerous teams to the
post season and coaxed the potential
out of hundreds of players.
He shared his formula for winning
and inspired listeners to create their
own game plan for a winning year. He
also explained how he pulled the greatness out of players and motivated others to do the impossible.
Other well-known speakers included Bronze Star recipient Keni Thomas
and athlete Kyle Maynard.
Thomas’ message, passion, and
excitement left a mark on the audience
that will impact their lives for years to
come.
In the summer of 1993, Thomas and
B Company deployed to Mogadishu,
Somalia, as part of a special operations
package called Task Force Ranger.
Their mission was to find and capture criminal warlord Mohammed
Farrah Aideed. Soon after deploying,
Thomas and his fellow rangers distinguished themselves in an 18-hour firefight that would later be recounted in
the highly successful book and movie
Blackhawk Down.
Thomas, a leader in the battle,
shared a powerful message about his
experience. His presentation transformed the audience’s concept of training, leadership and responsibility with
his message to “Train as you fight.
Fight as you train.”
Maynard shared his story of how he
beat the odds to become a championship wrestler. He was born in 1986
with the rare disorder congenital amputation, leaving him with three joints – a
neck and two shoulders. He has no
elbows or knees, measures just over 3
feet tall and weighs about 120 pounds.
He rose above his apparent physical
limitations and discovered how to
make them powerful advantages as he
fulfilled his dream. In a moving presentation, he shared how he plowed
through life's challenges with courage
and tenacity.
He inspired the audience with his
No Excuses rules to smashing adversity
and achieving the unthinkable.
“Everyone left Focus on the Future
with the mission of achieving great
things and a renewed passion to serve
their clients well,” Nicholson said.
SGI contractor affinity groups include AirTime® 500,
Plumbers' Success International®, Electricians' Success
International® and Roofers' Success International®, while
the Clockwork franchise organizations include One Hour
Heating & Air Conditioning™, Mister Sparky® Electric
and Benjamin Franklin Plumbing®.
4/9/08
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Page 7
Ad 2
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Page 8
Service
Are You ReallyCommitted
To Satisfying Customers?
By Terry Nicholson
JetBlue Airways® had an
enviable reputation of friendly
customer service coupled with
amenities that included leather seats, lots of
legroom and televisions on seatbacks.
Plus low prices!
Then came an ice storm and a service
meltdown on Valentine’s Day, Feb. 14, 2007.
The first mistake was based on inaccurate weather forecasts. A storm approaching
New York from the south was not expected to
result in severe weather for the airline’s home
base at John F. Kennedy International
Airport.
But those reports were wrong and JetBlue
moved too late to cancel flights. Nearly eight
hours of continuous icy conditions prevented
most flights from taking off while
planes continued to land at JFK.
Planes loaded with passengers taxied endlessly, waiting for a gate to
disembark or clearance to take off.
Some passengers spent up to 10
hours on the tarmac, and there
were reports of toilets overflowing
and flights running out of food.
Company founder and CEO
David Neeleman would later put
costs for the service meltdown at
$30 million, including additional
staffing and travel vouchers to
reimburse customers. It was a week
before JetBlue was fully operational again.
Based on this incident, Neeleman lost his
job as CEO.
Why have I told you this? First, airlines
and the contracting industry traditionally
have among the highest number of consumer
complaints … so I think the lesson JetBlue
learned that day is also a good lesson for contractors to keep in mind.
You can be humbled even if you’re doing
many things well. And the effects can last for
years.
Prior to the incident, JetBlue had built a
strong reputation for service. Consumer
Reports’ National Research Center survey in
2007 ranked JetBlue as No. 1 in customer satisfaction.
So it can happen to you!
The other thing to keep in mind is that
most contractors have a false sense of their
own commitment to serve customers. They
compare themselves to other contractors in
the business and proudly boast of their service level.
They’re often wrong.
Do you answer your phones until 7 p.m.
Illustration by Jennifer Scharenbrock
or a company that was
F
doing everything right, it
became the perfect storm.
been rectified. Have your people been able to
make a service recovery so complete that this
customer is your customer for life?
Consider a few examples from the front
lines:
• At John Robert’s Spa in Cleveland, OH, a
43-year-old woman who came in for a hair
coloring realized later that her suit had been
stained. When a trip to the cleaners failed to
remove the stain, the spa sent her a check for
$385 for a new suit and threw in a free facial
and pedicure. As a result, she raved to 30
friends over how they treated her and
“wouldn’t think of going anywhere else,”
according to CNNMoney.com.
• At Nurse Next Door Professional Home
Care Service® in Vancouver, BC, the company
hand-delivers a fresh-baked apple pie (a
humble pie) to customers with a note that
apologizes for poor service by saying
it is “humbled” by the experience
and regrets the bad service.
CNNMoney.com reports the company
has spent $1,300 on pies but estimates that it has kept customers
worth $90,000 from defecting.
Think about the recent example
of a Midwest Airlines® employee who
loaned a passenger his suit for a special occasion, or the retailer who
refunded a customer the money for a
set of tires even though the retailer
has never sold tires.
Did you read about Starbucks® closing
nearly 7,100 company-owned stores in the
United States at 5:30 p.m. on a Tuesday afternoon in February so an estimated 135,000
employees could go through three hours of
training?
Even though Starbucks uses automatic
espresso machines, employees must adjust
the grind to make sure a shot doesn’t pour
too quickly, making it watery. If they overcompensate and pour it too slowly, it can
become bitter.
Just like when trying to create a company
culture of service, it’s not as simple as pushing a button.
“Mostcontractorshavea
falsesenseoftheirown
commitmenttoserve
customers.Theycompare
themselvestoother
contractorsinthebusiness
andproudlyboastoftheir
servicelevel.” –Terry Nicholson
8 TSC SPRING 2008
while your competitors turn on an answering
service at 5 p.m.?
Yes, your commitment is greater than
your competitor, but it still falls woefully
short of meeting customers’ expectations.
After all, we live in a world where banks are
starting to stay open 24-hours-a-day; where
grocery stores are starting to bring your groceries out to you when you drive up in your
car; and where barbershops serve you a beer,
shine your shoes for free and let you play
chess while waiting to get your hair trimmed.
I direct contractors if they want to measure service, they should compare themselves
to the best service companies in the world …
not to their competitors’ companies. Your
goal should be to create a memorable experience.
How do you get there? By creating a company culture that puts the customer first.
Customers today demand immediate
solutions, and they’re tired of hearing that
they’re always right until they want something!
If you want to measure your commitment to service, check in with customers
who have complained after the problem has
Terry Nicholson is group president of Client
Services at Clockwork Home Services® and president
of Success Group International®. He is passionate about
customer service and customer satisfaction, and is the
architect of more than 100 strategies that SGI member
contractors use to translate the goal of creating a
customer-focused company into reality. If you have a
question about how to accomplish that, email him at
tnicholson@yoursgi.com.
4/9/08
2:22 PM
Page 9
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SPRING 2008 TSC 9
4/9/08
2:22 PM
Page 10
Success Story
After getting help, Jim Gregg and his team
tripled revenue and increased profits
nearly as much in just three years.
Photo by Nathan Walker
How A Canadian
Contractor
Realized His
Hidden Potential
By Sandy Townsend
hile $1 million in yearly revenue is nothing to sneeze at, Jim
WGregg,
Gregg knew his company could do better.
owner and president of Gregg’s Plumbing & Heating
should generate more than $4 million this year and reach the $8
million range within three years.
The company’s success has given Gregg the opportunity and
Ltd., had been serving his clients well in Saskatoon,
means to get away from the office and created more opportuniSaskatchewan since 1986, but he knew he had more to learn about ties for employees.
running a better business.
He travels extensively and recently visited Asia and Central
“We were always looking to the future and for different ways America. Closer to home, he and his family enjoy many extended
to become more profitable,” Gregg said.
weekends at their summer cabin 140 miles away near a national
When he heard about a Success Group International® Profit
park in the province of Saskatchewan.
He and his wife, Shelley, have two sons, and his oldest son,
Day in Calgary, he took a seven-hour drive to the event to learn
Brett, is already a member of the Gregg’s
more.
team. Brett plans to follow in his father’s
He liked what he learned, and in
footsteps and possibly open his own
September 2004, the company joined
company in the future.
AirTime Canada™ ULC. Gregg realized
Their younger son, Eric, plans to
the benefit of membership and became
attend University, an endeavor made
a member of Plumbers’ Success
possible with Gregg’s profits.
International® Canada in April 2006.
Both are SGI organizations.
The company’s success allows
During the next three years, Gregg
Gregg to give back to the community.
saw his company’s revenue triple and
He supports his wife’s involvement in
profits increase nearly as much.
raising funds for the Saskatoon Cancer
– Darcy DeForest
Technicians and comfort advisors
Center, and Gregg’s is a sponsor of one
Sales and Marketing manager
increased their closing and sales ratios,
Gregg’s Plumbing & Heating, Ltd. of the center’s major fundraising events.
in turn earning more money.
Gregg was also proud that he was
The company also remained comable to pay for airline tickets, lodging
mitted to providing excellent customer service and high quality
and tuition for 15 employees to attend SGI’s Focus on the Future
products backed with the best guarantees in the industry.
event in Las Vegas in April.
In 2004, before membership in Airtime and PSI, Gregg’s
One way he became successful was by changing the focus of
yearly revenue was less than $1 million, with a profit of 6 percent.
the company. Commercial work once accounted for 95 percent of
In 2007, the company generated $3.7 million in revenue with a 17
the company’s total revenue. Now it accounts for less than one
percent profit. The company’s current financials reflect they
percent.
“Good things happen to
you when you have
access to the brightest
minds in the business
for whatever you need
to grow your business.”
10 TSC SPRING 2008
Continues on page 12
4/9/08
2:22 PM
Page 11
Flexibility and control
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JVU[YVSL]LY`HZWLJ[VM`V\YÅLL[JHYK\ZL0UZ[HU[S`TVKPM`H\[OVYPaH[PVUJVU[YVSZ[YHJRÅLL[
JHYK\ZHNLYL]PL^HUPU]VPJLHUKZJOLK\SLWH`TLU[¶HSSVUSPUL7S\Z`V\JHULHYUM\LSYLIH[LZ
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Success Story
4/9/08
2:22 PM
Page 12
Continued from page 10
A good friend of Gregg’s is a commercial property manager, “and the work was
handed to me,” but our company couldn’t
generate much profit from it, Gregg said.
As a commercial property manager,
the bottom line was the most important.
“He wanted me to be a cheap Charley,”
Gregg said. “I couldn’t do it.”
The company backed away from
commercial work, and Gregg was able
to keep his friend in the process.
“He’s still a good friend,” Gregg
said. “The only difference is the company is making a lot more money.”
As a member of AirTime and PSI,
Gregg’s has access to proprietary business solutions that helped his company
grow and prosper.
“Good things happen to you when
you have access to the brightest minds
in the business for whatever you need
to grow your business,” said Darcy
DeForest, Sales and Marketing manager at
Gregg’s. “We didn’t have to develop anything; all the programs were laid out for us
to use … we just had to implement them.”
Some of the steps the company took
to improve its service and sales include:
• StraightForward Pricing®, which takes
the guesswork out of the costs to the customer. Customers know what something
will cost before any work begins so there
are no surprises.
Gregg’s had developed flat rate pricing guides before it joined PSI and
EECD!
R
F O
M
DE
AirTime, but with nearly 10,000 different
entries, “it was very cumbersome,”
DeForest said. The company now uses
much simplified StraightForward Pricing
guides from PSI and AirTime.
• Tips from the pros. As members of PSI
and AirTime, Gregg’s leaders can seek
advice from some of the greatest minds in
ing rate from 15 percent to 50 percent in
just two months. They also increased their
average HVAC tickets from $4,000 to
$7,200.
After service technicians attended
The Professional Plumber and Power
Performing Technician courses, the company increased its average service ticket
from $200 to $420.
Client care representatives
improved their performance by attending Mastering the Art of the Telephone
& Dispatching for Profits, along with
Marketing Sales Lead Coordinator programs. The courses help them qualify
leads and collect information that will
help them better serve clients.
“We were blown away by the quality
of
and depth of the sales training at
– Darcy DeForest
The Success Academy and the systems
Sales and Marketing manager
Gregg’s Plumbing & Heating, Ltd. available,” DeForest said. “Now that SGI
Canada has established a first-class
the contracting industry. They also receive training venue in Toronto, we have easier
one-on-one coaching from Robin Faust,
access to Success Academy’s world-class
the company’s client support representatraining.”
tive at AirTime® 500, and Darrel
Gregg’s is such a believer in training
Yashinsky, president of Success Group
that it recently hired a full-time trainer who
International Canada.
can maintain the team’s training on site.
• Training. The company’s leaders are
• Branding. In the past, the company
great believers in the power of employee
relied on the brand of the products it sold,
training, and it’s easy to see why. After two instead of the Gregg name. Now, Gregg’s
new comfort advisors attended The
focuses on branding its company and puts
Success Academy’s Million-Dollar Sales
its name on the furnace and air conditionFactory training and reinforcement training units it installs. The company also
ing at the office, they increased their closContinues on page 34
“We were blown away
by the quality of and
depth of the sales
training at The Success
Academy and the
systems available.”
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Ad 6
12 TSC SPRING 2008
4/9/08
2:22 PM
Page 13
Some things are better left to professionals,
like the negotiations for your service fleet.
Whether you have one or 1,000 vehicles, Leasing Associates can save you money, save time, and,
perhaps more importantly, prevent you from being on the losing end of a wrestling match with savvy
automobile dealers and salesmen.
The fact is, we negotiate great deals with the largest fleet dealers in the country for all makes and
models. We’re very good at it, we do it 365 days a year, it’s all we do and we’ve been doing it for 50 years. In
fact, we have thousands of leased service vehicles on the road every single day. Simply put, it’s our business to
save you money and remove all of the hassles associated with every aspect of your service fleet. This can
mean leasing with no mileage restrictions, custom uplifting, national fleet maintenance, no-charge fuel cards
and fuel management, including online access, insurance and even vehicle remarketing.
Your Leasing Associates fleet account manager will work with you, one on one, to help you select the
vehicles and lease plan that will be the most beneficial and cost-effective, and to provide you with personal,
ongoing fleet management assistance. This personalized service is a major reason we have so many repeat
and referral customers all across the country. And it does not matter when you lease your vehicles, our deals
are diligently pre-negotiated, so there is no need to wait for year-end model “sales.” Plus, we work with all
manufacturers' discount programs, including BuyMax Alliance®. It simply can’t be easier, plus you’ll save
money, too.
Sure, you can try and do it yourself (and might even think you are saving money) ... but seriously, why
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Call Leasing Associates toll free today for details. 1-800-449-4807 Ext. 307
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4/9/08
2:22 PM
Page 14
‘The Handwriting W
Kerry and Scott Adkins were doing well, but knew it couldn’t
last. So they reinvented their electrical contracting business,
boosted performance through training, and more than
doubled their profits. What can you learn from their story?
the midst of one of his best years,
Success Story
IwasnAlabama
electrician Kerry Adkins
troubled and couldn’t sleep.
In taking a road less traveled, Scott Adkins, right,
and Kerry Adkins mitigate risk, get paid right away
and improve their cash flow. Photos by Alan Matthews
14 TSC SPRING 2008
“We were doing about 95 percent
new construction in 2004, wiring new
houses,” Adkins said. “Of that, about
80 percent was with one contractor and
I began to think about what would happen if he woke up one day and decided
to replace us.
“I was also worried about the market. The Birmingham area had been
good to us for a lot of years, but I knew
it couldn’t last … the housing market
was going to turn and it was only a
question of when.
“I felt like the handwriting was on
the wall.”
Adkins had a nightmare that he
and his brother Scott had to lay off
many of their employees.
“We have good people, great electricians, people who have been with us
for a very long time,” Adkins said.
“There was no way that my brother or I
ever wanted to have to tell them they no
longer had a job.”
Adkins Electrical Service would go
on to generate $1.2 million in revenue
with a seven percent net profit in 2004,
respectable numbers for an electrical
contractor in new construction.
But the Adkins brothers decided to
remake their company to focus on residential electrical service and transition
from new-construction work. They reasoned that the service work would balance some of the risk of being in new
construction.
Just over three years later, the two
men and their general manager, Jeff
Adams, have reinvented their company
and have changed their name to Adkins
OnTime Electric.
Their current financials place
them on track for reaching $1.5 million
in service revenue plus $300,000 in
new-construction revenue in 2008 with
4/9/08
2:22 PM
Page 15
g Was On The Wall!’
at least a 15 percent net profit, more than
service was not lost on Adkins. Before, the
double the profit they would make during company would do service work when
a good year before.
they ran into it, or as a favor to a friend.
The company continues to move fur“I remember calling the (service) custher toward residential service work.
tomer before my electricians went over to
Service generated 70 percent of the revthe house,” Adkins chuckled. “I’d say, ‘the
enue in 2007 while new construction proguys are on the way over and they may
vided 30 percent. In 2008, 83 percent of
look a little rough, but they’re good elecrevenue is expected to come from service
tricians and they know what they’re
and 17 percent from construction. The
doing.’
ultimate goal is to build a $5 million-a“I’d also tell the customer that they
year service powerhouse.
might have to do a little cleaning up after
There are other positives, too. The
them.”
company celebrated its best year ever in
The company would start with one
2007, and Adkins now feels comfortable
service truck manned by the electrician
enough with the
proprietary business management
systems in place
from Electricians’
Success
International® –
and the company’s direction –
Kerry Adkins, far right, General Manager Jeff
that he plans to
Adams, middle, and Scott Adkins reinvented
take up to five
their company to focus on electrical service.
weeks of vacation
in 2008.
Normally, he
was lucky to take
two.
He also
understands,
thanks to the
training he has
received, that his
responsibility
now is to work on
the business, not
in the business.
He’s equally
clear about the
direction of the
company.
who was the most technically knowledge“Our future,” Adkins said, “is resiable about local regulations and building
dential service and repair. The more we
codes. That person also happened to be
got into it, the more we realized that’s
“the most willing to wear a uniform.”
where it’s at.”
Remarkably, Adkins OnTime Electric
Adkins’ bad dream and his feeling
would generate $415,000 in revenue durthat the new-construction work would
ing its first year of service even though
bottom out resulted in him, and Adams,
they were without the benefit of a Yellow
going to a “profit day” meeting with ESI
Pages ad for the first 10 months of the
and its leader, Patrick Kennedy, in
year.
September of 2004.
The company used ESI’s Victory
They joined immediately.
Village Program® to produce great results.
The irony of jumping into residential It mailed letters to 1,000 homeowners in
its target area for 12 consecutive months.
The letters shared all kinds of health
information and helpful homeowner tips,
and only casually mentioned electrical
service.
The results were amazing.
They were forced to add a second
truck for their service business halfway
through the first year. Service revenue
jumped to $752,000 in the second year,
and to just over $1 million in 2007. At the
same time, as a member of ESI, the company was able to enjoy group buying discounts through BuyMax®, reducing the
costs on materials and services it routinely purchases.
Adkins attributes the success of
his company’s
makeover to three
things:
• Starting The
New Business The
Right Way
Adkins OnTime
Electric would
stress professionalism and service
excellence, and back
up everything it did
with a service guarantee. That meant
uniforms, neat,
clean appearance
and cleaning up
after the job. The
company did not
want to be on the
low end of pricing
for electrical service, but they knew
they would have to
provide an
unmatched level of service and professionalism to command a higher price.
The company also offered ESI’s
Technician Seal of Safety Your Symbol of
Trust®, meaning it checks the criminal
backgrounds of its employees, drug tests,
and certifies that its technicians are well
trained. Coupled with its service guarantee, this provides peace of mind to the
customer.
• Training, Training And More
Training
Adkins did not want to find a better
TheUltimateGoalIsTo
Builda$5Million-a-year
ServicePowerhouse.
[
]
SPRING 2008 TSC 15
Success Story
4/9/08
2:49 PM
Page 16
Continued
way to run the business, he sought the
best way. To maximize performance of the
technicians, and to run the company the
best way, the company committed to
training programs from The Success
Academy®.
This included training techs on how
to present prices and options to the customer; customer service training on how
to answer the phone and increase the percentage of those calls that turned into
service appointments; sales and accounting classes; and general manager training
for both Adkins and Adams.
• Service By The Book
ESI provides its contractors with a
roadmap for how to run their business
profitably, and as part of that, a pricing
guide that resulted in a price increase for
service. Before implementing the
StraightForward Pricing® Guide, however,
Adkins and Adams took the class on how
to present the price to customers and then
ran calls to see if it worked.
Not only were customers receptive to
the higher price, they also appeared to be
more pleased with the work because the
two did a good job individually of
explaining the problem, what they
planned to do to fix it, and the options the
customer had for taking care of the prob-
lem. Adkins and Adams wanted to test,
beforehand, anything that their electricians were going to use. They did, and it
worked.
That kind of commitment made an
impression with employees. Adkins and
Adams walked the talk first.
Adkins said there are two other questions he’s often asked by other electrical
contractors who are still doing primarily
new-construction work. First, is a question about how he likes service work. Both
he and his techs like it a lot; they are often
praised by customers … the compliments
and appreciation are harder to come by in
their other work. And there’s another benefit … you get paid right away, immediately after you complete the job.
That’s a boost to your cash flow.
“People also ask me whether I could
have made this change myself, on my
own, without joining ESI,” Adkins said. “I
told them yes, I could have, but it would
have taken a lot longer and cost me a lot
more, and I would not have been as successful this fast.
“I wanted the benefit of knowing
what the people who did it before me
know … I wanted to pick their brain about
the best way to do things and why.”
If you would like more information about Electricians’
Success International®, call toll free at 1-866-695-6544
or visit the organization’s website at www4.youresi.com.
What
Kerry
Adkins
Learned
Get help when you enter
a new business.
Seek out people who
have done it – and ask
questions!
Track profitability on
each job.
Don’t ask your techs to
embrace something you
haven’t.
Fully commit to
training.
When’s the last time you left work behind
long enough to just enjoy her company?
©2007 AirTime® 500
Sometimes it seems we work too hard on all the wrong things. Your HVAC business doesn’t have to
keep you from the other important things in life. Now is the time to discover your new life...
visit www4.timeforanewlife.com
16 TSC SPRING 2008
Ad 8
4/9/08
2:50 PM
Page 17
Is Being Your Own Boss Everything
You Thought It Was Going To Be?
This... or This
You’ll thank Benjamin Franklin Plumbing for the free time!
You’ve worked hard building your plumbing business into a success story. But admit it…you’ve spent so much time working, you’ve
missed doing some of your favorite things - like landing the big one. Isn’t it time to consider converting your business into a Benjamin
Franklin Plumbing® franchise? We’ve developed turnkey operational systems to help your business run smoothly even when you’ve
gone fishing. Our software systems, marketing, sales support services, networking opportunities and nationally recognized brand
name help you mature your business and live your life.
If you want to transform your business into a tool for achieving freedom and flexibility, call Benjamin Franklin Plumbing® at
1-877-BEN BUZZ™ (1-877-236-2899); ask for Ken, or visit our website www4.thankyoubenjaminfranklin.com.
Free Information Kit!
Call 1-877-BEN BUZZ™
ask for Ken, or visit our website
www4.thankyoubenjaminfranklin.com
Benjamin Franklin Plumbing® has moved up from
#40 in 2006 to #36 in 2007 as the top new franchises
in the U.S. by Franchise Times Magazine.
Ask us about our Open Houses
May 9, June 9, July 11, 2008 - Sarasota, FL
Franchise Times Monitor calculates the Fast 55 using the following methodology: 1) The brand has been franchising for five years or less. 2) They must exhibit positive
franchise unit growth for each year during this period. 3) They are awarded a ranking by the fastest unit growth during the last year. Rankings are neither approved nor
supported by your applicable state franchise board.
*Benjamin Franklin Plumbing® has moved up from #423 to #249 in the U.S. by Entrepreneur magazine's Franchise 500®.
*The source is Entrepreneur magazine and their Franchise 500® rating system, which annually initiates questionnaires to all known U.S. and Canadian franchisors.
Judging criteria is financial strength and stability, growth rate and size of the system, including the number of years in business and length of time franchising, startup
costs, litigation, percentage of terminations and whether financing is provided, and upon audited financials. Based upon the approximately 75% of responses they
receive from the franchisors, scores are compiled for the past five years or less, and those rankings are awarded in January.
Minn. Reg. F-4264 Benjamin Franklin Franchising, L.L.C., 50 Central Avenue, Suite 920, Sarasota, FL 34236
YOU SHOULD NOT TAKE THE FRANCHISOR’S STATEMENT OR THEIR EXPERIENCES AS AN INFERENCE THAT A PURCHASE OF A FRANCHISE
IS A SAFE INVESTMENT OR THAT FAILURE, LOSS OR DEFAULT IS IMPOSSIBLE OR UNLIKELY, OR THAT EARNINGS OR PROFITS ARE ASSURED.
Ad 9
©Clockwork Home Services, Inc.
4/9/08
2:50 PM
Page 18
4/9/08
2:50 PM
Page 19
Ad 10
4/9/08
2:50 PM
Page 20
Business Startup
Patrick Kennedy’s
New Mister Sparky
Franchise Getting
Into High Gear
Quickly
®
Patrick Kennedy, foreground, is
building his new Mister
Sparky® Electric franchise
location from scratch in
Sarasota with the help of
technicians Travis Howett, back
left, and Cameron Pedersen.
Photo by Dale Novak
By Sandy Townsend
Patrick Kennedy is building his second Mister Sparky® Electric
Franchise from scratch, this time in Sarasota, FL. Here, in the second
story of a series, readers can continue to monitor his progress.
I
t’s tough building an electrical business
from scratch, but the process has been
made easier for Patrick Kennedy by a
leader in the industry – himself.
That’s because Kennedy is following
the systems and processes he has already
outlined for hundreds of other successful
electrical contractors through Clockwork
Home Services.
Kennedy, the founder of the Mister
Sparky® Electric franchise and co-founder
of Electricians’ Success International®,
began building a new Mister Sparky
franchise Oct. 8 in Sarasota, FL.
A pioneer with three decades of experience, who built one of the largest residential electrical service businesses in the
country, Kennedy is one of the most
respected names in the industry.
But even he needed a new challenge.
“I realized that I missed being on the
front lines of running a business,”
Kennedy said. “I wanted to be closer to an
20 TSC SPRING 2008
owner’s day-to-day responsibilities so I
could share the successes and overcome
the obstacles as part of a team.
“You don’t understand how special
that is until you realize how much you
miss it.”
Now, Kennedy said, his goal is “to
cultivate one of the fastest-growing
Mister Sparky franchises in the country
and be profitable.”
Kennedy’s new Sarasota franchise
will serve as a business enhancement center for Mister Sparky. Clockwork calls
them business enhancement centers
because they provide a hands-on opportunity to learn from the experts, and see
exactly how it is done.
The Progress Report
As the owner of a new business with
monthly revenue goals, Kennedy had to
get the word out, and get it out fast.
He had already missed a crucial dead-
line, Yellow Pages advertising, when he
started his business. But with the help of a
Clockwork preferred vendor, he was able
to get a Mister Sparky ad in five different
phone books and reach hundreds of thousands of potential customers.
Kennedy worked with C-K Yellow
Pages, which negotiated favorable rates in
the books and in SuperPages.com.
“I wouldn’t have gotten in the books
without their help,” he said.
To broaden his audience, Kennedy
also started a television advertising campaign. He used three broadcast-ready
commercials, which made television
advertising more affordable.
The spots, available to every Mister
Sparky franchisee at no extra cost, saved
thousands of dollars because he only had
to pay for the advertising, not the production.
He rotates the commercials among
three networks: HGTV, The Weather
4/9/08
2:50 PM
Page 21
This... or This
You’ll thank Mister Sparky for the free time!
You’ve worked hard building your electrical business into a success story. But admit it…you’ve spent so much time
working, you’ve missed doing some of your favorite things - like playing more golf. Isn’t it time to consider converting
your business into a Mister Sparky ® franchise? We’ve developed turnkey operational systems to help your business run
smoothly even when you’re on the links. Our software systems, marketing, sales support services, networking
opportunities and nationally recognized brand name help you mature your business and live your life.
If you want to transform your business into a tool for achieving freedom and flexibility, call Mister Sparky ® at
1-888-SPARKY 8™ (772-7598); ask for Cassidy, or visit our website www4.thankyoumistersparky.com.
Call 1-888-SPARKY 8™
ask for Cassidy, or visit our website
www4.thankyoumistersparky.com
Ad 11
Minn. Reg. F-5451 Mister Sparky Franchising, L.L.C., 50 Central Avenue, Suite 920, Sarasota, FL 34236
YOU SHOULD NOT TAKE THE FRANCHISOR’S STATEMENT OR THEIR EXPERIENCES AS AN INFERENCE THAT A PURCHASE OF A FRANCHISE IS A SAFE INVESTMENT
OR THAT FAILURE, LOSS OR DEFAULT IS IMPOSSIBLE OR UNLIKELY, OR THAT EARNINGS OR PROFITS ARE ASSURED.
4/9/08
2:50 PM
Page 22
Business Startup
“My belief is, to run a
really good business,
your employees must be
number one. If you make
them number one and do
everything you can to
make them happy,
they’ll make your
customers happy. If your
employees and customers
are winners, your
company becomes a
winner as well.”
– Patrick Kennedy
Channel and a local network affiliate.
“We have a limited budget, so we saw
this as a way to have good frequency without breaking the bank,” he said.
Kennedy is also building business
relationships with other home service
contractors. He’s already having success
with a company that sells lighting fixtures and refers Mister Sparky.
“We offer to install fixtures the same
day they sell them, and the customer gets
a $25 discount on our services,” he said.
“The lighting store owner loves that we
can get to the customer’s home on the
very same day.”
Proven Systems Lead The Way
During the first quarter of 2008, his
technicians ran about 216 service calls and
conducted an estimated 11 service/panel
changeouts.
He attributes the company’s progress
to the systems and tools available through
Mister Sparky and Clockwork. Franchise
owners gain access to marketing strategies and programs; the branding, advertising and direct mail; the operations
manual; comprehensive hiring expertise
and training; a pricing guide; and proprietary customer service information.
Kennedy chose his employees carefully, which has paid off tremendously as
he introduced them to the new systems.
“They’re very young, motivated and
open to change,” he said. “During their
22 TSC SPRING 2008
interviews, I tried to get an idea of what
motivates them and how they handle
change. I look for certain criteria, but also
rely on my gut feeling.”
Once they were on board, Kennedy
sat down with his employees and discussed their personal goals and how
Mister Sparky can help them achieve
their goals.
He plans to introduce an incentive
program that will help them increase
their income and reach their financial
goals.
“My belief is, to run a really good
business, your employees must be number one,” he said. “If you make them number one and do everything you can to
make them happy, they’ll make your customers happy.
“If your employees and customers are
winners, your company becomes a winner
as well.”
He recently brought his two technicians to their first course at The Success
Academy®, where they attended The OnTime Electrician class. He attended the
class too. He wanted both his technicians
to know just how important this training
was. The course taught them how to close
repairs and service agreements, establish
pride and professionalism in the industry,
and build trust and rapport while presenting the StraightForward Pricing® Guide.
The guide is a Clockwork trademarked
pricing system that takes the guesswork
out of what something will cost for the
customer.
In addition, the course focuses on
helping technicians establish a minimum
average ticket of $385 per repair call, and
convert a minimum of 25 percent of
repair calls into service agreements.
Kennedy also trains his technicians
and office manager every week on customer service. The process is made easier
with customized scripts and training provided by Mister Sparky.
As the months have progressed,
Kennedy has encountered some unique
challenges in unexpected places.
“I’ve been out of the technical side of
the business for many years and had to
study the current electrical codes,”
Kennedy said. “The codes have changed
twice since I answered technical questions.”
To catch up, he studies the codes and
relies on other experts for technical assistance.
He also noted that construction is
different in Florida than in Georgia, where
he founded Mister Sparky in 1996.
“The block construction and lack of
basements in Florida makes installation
more challenging,” he said.
As a result, he made adjustments to
the company’s StraightForward Pricing®
Guide.
“I started using the guide we developed for the Atlanta market, but discovered that some installations are more
time-consuming here,” he said. “We had
to take that into consideration.”
He’ll continue to tweak the company
and make adjustments along the way as
he meets new challenges head on.
In the end, everyone will benefit – his
customers, employees, and ultimately,
other business owners when the Sarasota
franchise becomes a business enhancement center for other Mister Sparky
franchisees.
The founder of Mister Sparky is back
on the front lines doing what he loves …
and continuing to share his knowledge
with franchisees.
HowTo
Jump-Start
ACompany
Build a financial budget and
use it as a blueprint to guide
your company.
Share your expectations and
goals with your employees.
Track progress and measure
performance every day.
Train employees from the
get-go.
Provide opportunities for
employees to succeed and
grow.
Advertise your company and
build relationships with
other contractors.
Price your services correctly.
– Patrick Kennedy
4/9/08
2:50 PM
Page 23
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©2007 AirTime® 500
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SPRING 2008 TSC 23
4/9/08
3:46 PM
Page 24
Success Story
‘I Just Could
NotWalk
Away!’
Photo by Glenn Jay
Bad management,
embezzlement and
questionable loyalty to a
friend left California roofer
Tony Silva $1.2 million in
debt. Two lawyers and his
accountant told him he had
to shut the doors and walk
away. What happened
next would rekindle his
dreams and define his life.
Is success sweet? Oh, baby!
Tony Silva, the biggest dreams were
Foreasily
within reach.
Silva had started his roofing company
in 2000 in Tracy, CA, and from the outside
looking in, he was doing well.
Betterbuilt & Associates generated $5
million in its first year and the sky was the
limit.
“My goal was to take over the country,” Silva said, chuckling. “I was 25 years
old and I knew everything … I was the
guru!”
24 TSC SPRING 2008
Boy Oh Boy: Through the hard times, this was the big picture Tony and Alisha Silva always dreamed of …
a successful business and cute, 20-month-old first addition Aiden Silva.
Then came what he calls “the humbling.”
Over the next five years, there was one
calamity after another. Looking back, he
created most of his own problems.
Silva had opened the business with a
longtime friend. He concentrated on roofing while his partner did remodeling work
in Northern California. Both embraced a
“get-business-in-the-door quickly“ philosophy.
It was no surprise that the remodeling
work caused serious red ink for the business and cash-flow problems. At the same
time, Silva’s roofing business provided
high-quality work at an unbeatable price
... not usually a recipe for success.
“I was basically buying the work,”
Silva said. “We figured by the end of a year
we would have all these customers and
they would be referring us to their friends
and family.
“We could raise our prices then.”
‘STUPID,’ BUT LOYAL
Although the roofing business was
underpricing its services, it still made
money. But Betterbuilt was not able to
overcome the remodeling losses.
“My partner told me the losses were
temporary,” Silva said. “He said we just
needed another signature job to get our
foot in the door and then we would start to
make a lot of money.
“I was stupid … I believed him.”
By the middle of 2001, Betterbuilt was
$750,000 in debt.
“I told my partner that he needed to
go his way and I needed to go mine … it
was something I should have done much
earlier instead of being loyal to him. But,
even after we decided not to do any new
remodeling projects, we were still on the
hook for finishing the work we’d started.
By the time we completed those projects,
we were $1.2 million in debt.”
At least $100,000 of that debt Silva
attributes to embezzlement from a former
bookkeeper.
As a first step, Silva cut expenses to
the bone.
“We were a lean organization to begin
with … I mean, we did $5 million in business the first year with only three people
in the office. But we cut out everything.
We even took out the water cooler.”
By reducing expenses, raising prices
and focusing on profits, Silva was able to
repay $100,000 of that $1.2 million debt.
He slashed his advertising and marketing. He refinanced his house several
times to take out the maximum cash he
could, and maxed out credit cards. He also
had a sit-down meeting with his biggest
supplier.
“I begged them not to put me out of
business. I told them if they pulled the
plug, I’d have to file bankruptcy and they
would never see any of the $574,000 I owed
them,” Silva said.
Doubtful, but hesitant to walk away
4/9/08
3:46 PM
Page 25
Call 1-866-421-5529
4
Ad 13
4/9/08
4:21 PM
Page 26
Success Story
from the chance to recoup its
money, the supplier put
Betterbuilt on an aggressive
repayment schedule. It also continued to supply him with new
materials … with immediate
payment.
HOW MUCH IS
THAT IDLE TRUCK
COSTING YOU
EVERY DAY?
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26 TSC SPRING 2008
©2007 ESI. All Rights Reserved
They told him they were having
their only “profit day” in the
near future three days later in
Detroit, and that he could
attend that meeting. If he liked
what he heard, he could join.
Silva knew he couldn’t
wait; he had to attend the meeting in Detroit.
A MOUNTAIN OF DEBT
Using long accumulated
But Betterbuilt was more
than $1 million in debt and Silva frequent flyer miles, Silva
booked four flights to Detroit
was still in danger of going
under. In fact, two attorneys he for him, original roofing partconsulted and his new account- ner (and salesman) Dann Heath,
ant told him there was no hope production manager Andy
Carlsen and office manager
… he needed to lock the doors
Jessica Trinkle.
and walk away.
Because of a shortage of
“But I just could not walk
funds, the four stayed in one
away,” he said.
hotel room. “Everyone knew
At the time, he was working 70-hour weeks and not mak- this was our last chance,” Silva
said.
ing much progress.
They liked what they
IRS penalties from not paying payroll taxes were a big hit, heard, but were still skeptical.
“I probably believed about
and the credit cards that bailed
him out of temporary emergen- 20 percent of what they told
me,” Silva said. “But I knew that
cies were making it harder for
if I was right, that 20 percent
him in the long run.
He spoke about it with his would make a world of difference.”
high school sweetheart, wife
Alisha, and she told him,
THE TURNAROUND
despite the hardships, she
Once he joined, Silva
would stick by him no matter
attended an expo in which RSI
what.
outlines all the different things
There was one thing that
the business owner needs to do
Alisha Silva did not bring up.
to adapt its company to become
She had always wanted chila model roofing company.
dren, but he had resisted
Looking back, Silva said
because he did not want to have
these things made the biggest
a family if he was in debt and
difference:
couldn’t provide for them.
• The Instafix® Manual –
Alisha Silva had stopped
This manual covers every aspect
talking about it. Her dreams
of running a roofing business
had died, too.
She told him, instead, that along with target goals for every
company, depending on size.
if they lost their house, they
That meant everything from
could start over by renting an
tracking performance every day
apartment.
with daily financial reports and
“I was always stressed out
year-to-date analysis of how the
and it was so bad I thought it
company is doing, to recomwas going to take years off my
mended line-item costs. It covlife,” Silva said. “I had been
ers things down to the smallest
hanging by a thread for years,
wondering each day if this was details, including how you
the day someone would shut me answer the phone. Based on this
manual and other things the
down.”
group learned at expo, they
Midway through 2006,
would create a list of things
Silva read an article in The
they wanted to implement at
Successful Contractor about
Roofers’ Success International®, Betterbuilt. The list became a
a Success Group International® spreadsheet four pages long,
company. The organization was prioritized in order of importance and balanced by cost …
designed to help roofers free
the things that cost very little
themselves from long hours,
would be implemented first, the
lousy profits and a feast-ormore costly items as the compafamine business.
Immediately, he called RSI. ny generated better cash flow. It
4/9/08
was Betterbuilt’s roadmap of
where it needed to go, the heart
of its recovery plan.
• A New Identity – The
company had always been
called Betterbuilt & Associates,
but Silva realized the name did
not capture the customers’
attention.
He also needed what RSI
called a “unique selling proposition.” That is the statement of
why the company is in business
… the key benefit that it offers
to the customer. Using a unique
selling proposition designed by
RSI, Betterbuilt & Associates
became “Betterbuilt Kanga Roof
… We Hop To It!” A kangaroo
became part of their logo.
What’s ironic is that back
in the early days of his company, Silva paid an agency $30,000
to develop a corporate identity
package. The new name and
identity, which would become
far more effective and start to
brand his company, were free to
him as an RSI member.
• An Emphasis On Service
– Many roofing companies
ignore service and concentrate
on replacements. Silva’s company was one of them. Every year,
Betterbuilt stayed intensely
busy replacing roofs during the
summer months, only to lose
money during the slow winter
months. By embracing RSI’s
philosophy to provide service
and repair, Betterbuilt Kanga
Roof established strong relationships with customers
before they needed replacements, and stayed busy yearround.
• Training – By using RSI’s
StraightForward Pricing®
Guide, Betterbuilt has increased
its prices almost three times
over what it was charging when
it was trying to buy business.
You would expect closing rates
to suffer, right? The exact opposite has happened. Silva took
the training class from The
Success Academy® himself on
how to present price. His closing rate on replacements
approaches 90 percent some
months. “When I walked out of
that class, I felt like I had an
unfair advantage over the customer – and my competition,”
he said.
For Betterbuilt’s 2007 fiscal
year, which ends in May of this
4:21 PM
Page 27
year, Silva projects revenue of
$7 million. The company is projected to reach 15 percent in net
profitability, though that number does not please a man now
equipped to run his company
effectively. He’s using the profits to pay off the debt on his
balance sheet.
Two things do cause him
to smile, though.
First, he projects being free
from that $1.2 million debt by
the end of fiscal year 2008.
Second, with his own dreams
being shattered at the time,
Silva was deeply moved by the
unwavering support from his
wife. She believed in him and
was willing to lose everything
… without complaint! He could
not be the reason Alisha Silva
could not realize her own
dreams. He would find a way to
provide.
In September 2005, he had
pulled his wife aside and
uttered two magical words.
“I’m ready!”
Young Aiden Silva is the
newest member of the family
and turned 20 months old in
April. He is the pride and joy of
a certain roofer who would not
walk away from responsibility
and has lived a lifetime in his 34
years because of it.
Is success sweet? Oh, baby!
WHAT TONY
SILVA LEARNED
• Don’t let friendship prevent
you from making tough, but
necessary, business decisions.
• Deal with issues head-on. Don’t
let them fester.
• Track profits on each segment
of your business.
• Review your books closely even
if someone else handles them.
• Understand that mistakes you
make also affect your family,
your employees and their
families.
OKAY, YOUR TRUCKS
ARE BUSY. BUT HOW
DO YOU GET
MORE BUCKS OUT
OF EACH TRUCK?
Maybe your trucks are rolling non-stop, dawn to
dusk. But then why aren’t you taking more and
more money home at the end of each day?
Bottom line: there’s a world of opportunity you
are missing where the rubber meets the road.
Let us show you how to get more out of each
truck, everyday.
Call now for your 10 secrets to getting
more out of your trucks.
1-866-695-6544 or visit
www 4 .youresi.com
• If you’re in survival mode, get
help; you cannot do it alone!
If you would like more information about
Roofers’ Success International®, call toll
free at 1-866-421-5529 or visit the organization’s website at www4.yourrsi.com.
Ad 14
©2007 ESI. All Rights Reserved
SPRING 2008 TSC 27
4/9/08
4:29 PM
Page 28
Cool Tools Spotlight
Mobile Software Improves
Operations In Field And Office
By Sandy Townsend
ew software for contracN
tors has revolutionized
the way business is done and
made life in the field easier
for technicians at Reimer
Heating & Air Conditioning.
They use Mobile
Technician, software loaded
on a hand-held device that
gives technicians all the data
they need to complete their
jobs without having to talk
to a dispatcher.
The software is developed
by SWRemote and works
with SuccessWare®21, operations and management software for the service industry.
“It’s incredible,” said
Karen Jones, Operations
manager for Reimer, a member of AirTime® 500 in
Tonawanda, NY. “It’s made
us more efficient in the field
and office.”
She likes the system
because it’s user friendly,
cost effective, and it’s helped
increase the company’s profitability and customer service. She also praised the
developer for their customer
support.
With the handheld system and wireless carrier,
technicians can manage the
entire job process from start
to finish.
Mobile Technician is
loaded on a specific mobile
phone, which is plugged into
a mobile printer, credit card
swipe reader and barcode
scanner. It can also communicate with an optional GPS
using Bluetooth technology.
“Mobile Technician gives
technicians all the information they need to complete
the job in the field,” said
Steve Kiernan II, director of
Marketing for SWRemote,
which developed the software.
Because Mobile
Technician works with
SuccessWare21, contractors
must be SuccessWare21 customers to use the remote system.
“Using wireless technology, the device allows technicians to access essential data,
such as customer information, in SuccessWare21,” said
Ed O’Keefe, senior developer
28 TSC SPRING 2008
“You think it will be complicated, but it’s not.
“I have a guy who had a
hard time using a cell phone,
and he loves it,” she said.
The Mobile Technician
also provided benefits that
didn’t even expect, Jones
When technicians she
said.
log on to the remote
For example, it helps the
system, it provides company remember to make
the customer’s name, follow-up phone calls, which
could lead to additional
address, phone
If the technician sugnumber, what the sales.
gests an item or service to a
service is for and customer, he can make a
even turn-by-turn note of it on his Mobile
directions to their Technician. That information is then relayed to the
home. It also
office, where it’s reviewed by
provides the
a customer care representacustomer’s history, tive who can call the cusso the technician tomer to discuss the item
further.
knows what
Other ways the Mobile
equipment is there. Technician
has helped
“This helps me tremenReimer and other contractors
dously, because our represen- include:
tatives can spend more time
• Helps prepare invoices
with customers and less time and saves time in the
answering the technician’s
process. Technicians can
questions, because they have scan parts and the price
the information right in
book, and the Mobile
front of them,” Jones said.
Technician records the price.
“Technicians love it
It also automatically figures
because they’re getting all
the correct sales tax and any
the information they need
customer discounts.
about that customer,” she
• Accepts payments.
added.
Technicians can scan the cusBack at the office, it frees tomer’s credit card or enter
up time for customer care
the check number of the payrepresentatives because they ment. The Mobile Technician
spend less time relaying
also provides real-time credit
information to technicians.
card processing.
This allows them to accept
• Lets the customer care
more job responsibilities,
representative know when
such as marketing.
the service or installation
“The service we provide
is complete, so they can
our customers, whether
make an immediate followthey’re new or have been
up call.
with us for 20 years, has
• Speeds up paperwork.
greatly improved,” Jones
When the technician finishes
said.
the call, the office staff can
It also eliminated the
approve the invoice immedineed for a dispatcher,
ately in SuccessWare21,
because the machine does
rather than wait for the techthe dispatching. Reimer’s
nician to return with the
dispatcher, in turn, can focus paperwork.
on scheduling calls with new
• Helps during emergencustomers and assisting the
cies. When a customer has
technicians in other ways.
an emergency, Mobile
The device is also easy for Technician allows the schedtechnicians to use.
uler to see where the techni“You don’t have to be
cians are, so he or she can
electronically advanced to
send the most qualified techuse the system,” Jones said.
nician.
for SWRemote. “It also constantly updates information
gathered in the field and
incorporates it in
SuccessWare21, so it can be
immediately accessed by the
office staff.”
• Helps track performance. Mobile Technician
prompts the technicians to
answer questions about their
sales, closings and leads.
This helps the technicians
track their numbers more
accurately and holds them
accountable.
• Puts the company in
control of their technicians’ schedules. Reimer
provides scheduled appointments to technicians one at a
time, instead of providing all
of their appointments for an
entire day. This keeps technicians focused on their current customer.
• Tracks inventory. The
Mobile Technician allows
technicians to track inventory in SuccessWare21 as they
use it, so they always know
what needs to be restocked in
their trucks. It also generates
a printout of the parts they
need to replenish.
• Tracks the technician’s
activities and time throughout the day, whether he or
she is on the way to a customer’s home, at lunch or
finishing a job.
Reimer also tested Mobile
Inventory, another new software product developed by
SWRemote that integrates
with SuccessWare21. Mobile
Inventory uses a cellular
phone and Bluetooth barcode
scanner to track inventory
and better manage warehouse functions.
The Mobile Technician is
supported by two mobile
phones, the Verizon XV68OO
and the Sprint Mogul™ by
HTC. The system, including
the phone, is small enough
to be held in a holster and
clipped on a belt, and it
weighs about 1.5 pounds.
The Mobile Technician is
mainly used by the HVAC,
plumbing and electrical
industries.
Technicians can learn to
use the Mobile Technician
with instructor-led training,
videos and a user manual, all
available online. On-site customized training is also
available.
For more information,
contact SuccessWare®21
at (716) 565-3500 or
visit their website at
www4.successware21.com
4/10/08
11:17 AM
Page 29
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Steve Huff Plumbing
Vendor Partner
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SPRING 2008 TSC 29
4/10/08
3:00 PM
Page 30
Management
NineWaysToPrevent
PeopleFromEmbezzling
MoneyFromYou
The author, a theft victim herself, shares the
basics on how to prevent it from happening to you.
By Rebecca Cassel
ontractors think it can’t happen
If you are absolutely tied to having one perC
to them. Maybe they own a small son do it all, at least have an outside accountant
family business and they just know review the books and reconciliations monthly or
a member of their family would
never steal anything.
Or they have longtime, trusted
employees who are above reproach.
They should know better. In the most recent
examples I’ve heard, one contractor lost $250,000
over a period of seven years, and two others lost
$50,000 and $75,000 over shorter periods of time.
Here are nine things contractors
can do to protect themselves:
Ad 17
30 TSC SPRING 2008
1. Take control of who signs your checks
and don’t let go of it!
Letting many people in your company issue
and sign checks is a huge mistake. Having blank
checks laying around that anyone could take and
use to misappropriate funds is another.
In many contracting businesses, the purchasing and accounting system evolves into a procedure in which the bookkeeper or accountant
does it all. Don’t let that happen to you … it puts
too much power in one person’s hands.
Make sure two people must sign all checks –
and only two people. The business owner should
be one of them.
2. Implement a strong purchase order
system – with no exceptions!
A purchase order system allows you to track,
from the very beginning, every expenditure.
You evaluate the appropriateness of each
purchase beforehand, ensure every expense is
warranted, and guarantee that the price quoted in
the beginning is the price you will pay at the end.
There are no surprises.
Many otherwise good companies go out of
business every day because they do not control
their expenses. Don’t be one of them – and prevent
embezzlement at the same time.
3. Separate the accounting functions;
don’t have one person do it all.
The best accounting systems have built-in
checks and balances to avoid giving too much
responsibility to one person. Yes, I know that in
small businesses people are more likely to have
dual roles, but accounting and bookkeeping are
not functions where you should allow that to
happen.
Do not allow the person who takes in the
money and issues checks to also balance your
bank statements at the end of the month. If you
ignore this advice, know that it is very easy for
someone who has these dual functions to embezzle money from you. Because they can reconcile
the bank statements themselves, they can find
ways to cover up theft.
quarterly.
4. Track and reconcile all checks and
invoices.
All checks should be locked up at your company and you must maintain strict control over
them. Never pre-sign checks, and be wary of
someone who asks you to sign a check quickly
because of a deadline or the payment is late.
Issue techs the blank invoices they need and
then track their use. If a tech has received 10
invoices to start the week and used four the first
day, then keep track of what happens to the
other six.
Remember, some customers will still pay you
in cash. If you do not track blank invoices, a tech
can use a spare invoice, never turn in the copies of
it, and pocket the cash.
5. Eliminate petty cash.
Having $500 to $1,000 in petty cash at your
company is an invitation to steal. Tracking the use
of this petty cash is difficult, so it’s easy for an
employee to take $50 or $100 without you being
the wiser. Remove this temptation.
6. When you get an uneasy feeling,
investigate.
There are many ways people can steal money
from you and cover it up. Many contractors find
out about theft only when a large amount of
money is missing. But most thefts occur, instead,
in small increments over a period of years. The
person is successful because he or she takes a
smaller amount and can cover it up.
Are your sales great but your company is
strapped for cash? Do you have an uneasy feeling
something is wrong? Don’t ignore it, investigate.
7. Make your financials easy to track.
Despite letting others have the responsibility
for handling finances, all owners should review
them at least monthly. Your accountant or bookkeeper should be able to show you all the documentation and make this easy for you to review
quickly. Review the purchase orders, invoices,
checks, timesheets and payroll to make sure
everything matches up.
If you cannot review this quickly, or your
accountant cannot provide documentation, something’s wrong … with your accounting system or
your books.
8. Issue payroll and your checks to pay
invoices from separate checking accounts.
Trust me, this will make your accounts easier to reconcile at the end of each month, and simplify any reviews you do. Business owners who
find it hard to reconcile their bank statements
tend to avoid doing it. That’s a mistake that could
come back to haunt you.
4/9/08
4:38 PM
Page 31
Worried About This Year’s Profits?
Consider converting to a Benjamin Franklin franchise!
Transform your business into a powerful tool for achieving freedom and flexibility!
You’ll thank us for:
• Software systems
• Marketing
• Sales support services
• Networking opportunities
• Recognized brand name
• Exit strategy
Free Information Kit! Call 1-877-BEN BUZZ™
ask for Ken, or visit our website www4.thankyoubenjaminfranklin.com
Benjamin Franklin Plumbing® has moved up
from #40 in 2006 to #36 in 2007 as the top new
franchises in the U.S. by Franchise Times Magazine.
Franchise Times Monitor calculates the Fast 55 using the following methodology: 1) The brand has
been franchising for five years or less. 2) They must exhibit positive franchise unit growth for each
year during this period. 3) They are awarded a ranking by the fastest unit growth during the last
year. Rankings are neither approved nor supported by your applicable state franchise board.
*Benjamin Franklin Plumbing® has moved up from #423
to #249 in the U.S. by Entrepreneur magazine's Franchise 500®.
*The source is Entrepreneur magazine and their Franchise 500® rating system,
which annually initiates questionnaires to all known U.S. and Canadian
franchisors. Judging criteria is financial strength and stability, growth rate and
size of the system, including the number of years in business and length of
time franchising, startup costs, litigation, percentage of terminations and whether financing is
provided, and upon audited financials. Based upon the approximately 75% of responses they
receive from the franchisors, scores are compiled for the past five years or less, and those
rankings are awarded in January.
Minn. Reg. F-4264 Benjamin Franklin Franchising, L.L.C., 50 Central Avenue, Suite 920, Sarasota, FL 34236
9. Investigate the people who handle your
finances thoroughly before you hire them.
This seems obvious, but over and above a criminal
background check, investigate how they handle their
own finances. Has the person you are considering hiring bounced a check or been late with recent home
mortgage payments? Are they carrying a large balance
on their credit cards? If they don’t have the financial discipline to pay their own bills on time, why should you
let them handle your company’s finances?
Don’t think employee theft cannot happen to you.
Good people will be tempted to steal from you if you
make it easy for them to do so. Some begin by taking a
little amount of petty cash, promising themselves they
will pay it back. They never do, and gradually increase
the amounts they take.
For others, it may be a “situational problem” that
causes them to steal. Finally, some employees may harbor resentments or think they are not compensated fairly for what they do.
In any case, protect yourself, your employees and
your company from theft. A little extra prevention now
will avoid a lot of headaches later.
Rebecca Cassel is group president of Consumer Services at
Clockwork Home Services. In 1992, in just her second year
owning an HVAC company, an employee gained access to a
locked cabinet, stole a check and forged Cassel’s signature to
cash it. Using the safeguards in place Cassel mentions here,
she knew immediately what had happened and reported it to
authorities. From bank surveillance video, Cassel identified
the employee, fired her immediately, filed charges and had
her arrested for the theft, all within 24 hours. Even if an
employee does steal from you, Cassel said, having the right
system in place will identify the problem immediately and
prevent them from getting away with it.
Ad 9
Ad 18
Ad 11
SPRING 2008 TSC 31
4/10/08
2:43 PM
Page 32
Franchise News
Grow Your Own Techs!
Send your new or existing
technicians to
Ultimate Technical Academy®
Illustration by Jennifer Scharenbrock
for fast track
handshands-on technical training!
UTA offers technical classes in:
Ź Electrical Technology
Ź Refrigeration Technology
Ź Heating Technology
Ź Installation Technology
Ź Service Tech Performance
(Each Class is Only Five Days!)
You can choose which class would be beneficial
to you and your techs and fit it into your schedule.
Course description, current training schedule,
photos, student/owner quotes, pricing, lodging
and other information can be found on our
website: www.ultimatetechnician.com
Technicians spend a majority of the time training
“hands-on” on a wide range of fully operational
equipment in our labs.
Located only 12 miles from the Little Rock Airport,
UTA is easily accessible by air travel and within
driving distance from many major cities.
Call Pat or Mark Hardwick at UTA anytime of the
day for additional information and enrollment.
(Ask about our tuition easy payment plan!)
www.ultimatetechnician.com
ultimatetech@sbcglobal.net
Ad 19
Office: 11-501501-835835-8200
Fax: 11-501501-835835-8202
6108 Getty Drive Ƈ North Little Rock, Arkansas 72117
Clockwork
Franchises
ToExpand
IntoCanada
Benjamin Franklin Plumbing®, One Hour
Heating & Air Conditioning™ and Mister
Sparky® Electric expected to become
available early this summer.
e’s short, squatty, has a receding hairline, and like most 302year-olds, needs his glasses to read anything. So why exactly is Benjamin Franklin moving north after all these years and
taking a couple of friends with him?
To create new opportunities for personal growth!
Benjamin Franklin Plumbing®, a company that has gained
an incredible presence in a few short years and is based upon the
down-to-earth values and good common sense of its namesake,
is moving into Canada early this summer.
Clockwork Home Services® confirmed in late March that it
is preparing to offer Benjamin Franklin franchises in Canada,
and that it will also offer its two other hot-selling franchises as
well, One Hour Heating & Air Conditioning™ and Mister
Sparky® Electric.
Benjamin Franklin and Mister Sparky have never been
offered in Canada. One Hour has six franchises in Canada, all
with the same owner, and additional franchises were not previously available.
“This will be a great opportunity for Canadian contractors
to take advantage of the identity engineering of the fastest
growing franchises and take the world by storm,” said Tab
Hunter, president of Franchise Operations at Clockwork. “We’re
prepared for a positively electric response.”
The comment by Hunter, a history buff, appeared to be a
tongue-in-cheek way to honor Franklin, one of America’s most
renowned forefathers. In the early 1750s, Franklin flew a homemade kite during storms to study electricity and lightning, an
experiment that brought him international fame.
All three franchises are based upon common-sense
principles of excellent service that’s fully guaranteed, valuing
H
Ad 20
32 TSC SPRING 2008
4/9/08
4:39 PM
Page 33
“This will be a great
opportunity for Canadian
contractors to take
advantage of the identity
engineering of the fastest
growing franchises and
take the world by storm.”
–Tab Hunter
Worried About This
Year’s Profits?
President of Franchise Operations
the customer’s time, and creating an unforgettable experience in
which the customer simply cannot lose.
The franchises have traditionally been very popular with
contractors, have been named as good values, and are among the
fastest growing of any franchises in the world.
When it introduced Mister Sparky last year in the United
States, Clockwork Home Services was forced to create a waiting list
for contractors to learn about the franchise three months before its
introduction.
Hunter said that this time, Clockwork is prepared to answer
all questions and provide more information immediately.
Canadian contractors interested in getting more information can
call Benjamin Franklin toll free at 1-800-695-3579 or go to
www4.thankyoubenjaminfranklin.com; call One Hour toll free at
1-800-746-0458 or go to www4.thankyouonehour.com; or call
Mister Sparky toll free at 1-866-701-0999 or go to
www4.thankyoumistersparky.com.
One Hour®, Benjamin Franklin®
Earn High Rankings; Clockwork
Franchises Hit 400 Mark
One Hour Heating & Air Conditioning™ and Benjamin
Franklin Plumbing® are ranked among the nation’s top 500
franchises for 2008, according to Entrepreneur’s 29th annual
Franchise 500.
One Hour Heating & Air Conditioning ranked 162 on this
year’s list, and Benjamin Franklin Plumbing ranked 248. The rankings are published in the January 2008 issue of Entrepreneur.
The rankings are compiled annually by the magazine and
based on companies’ growth rate, financial strength and stability,
and size of the franchise system.
Other qualifications to make the list included the number of
years in business, length of time franchising, startup costs, low
employee turnover and whether the company provided financing.
Both Clockwork Home Services® franchises showed positive
growth, resulting in improved rankings over 2007.
In addition to its listing on the Franchise 500, One Hour
Heating & Air Conditioning was ranked No. 1 on Entrepreneur’s
Miscellaneous Home Repairs list and No. 5 on the magazine’s list of
Top Franchises for 2008, which Entrepreneur awards to the top
companies that have been franchising since 2003.
In January, Clockwork exceeded the 400th franchisee benchmark within its portfolio of franchise and company-owned service
centers.
Clockwork holds 240 Benjamin Franklin Plumbing franchises,
68 Mister Sparky Electric franchises and 224 One Hour Heating &
Air Conditioning franchises across the United States, for a total of
532 franchises.
Consider converting to a
Mister Sparky franchise!
Transform your business into a powerful tool for
achieving freedom and flexibility!
You’ll thank us for:
Software systems
Marketing
Sales support services
Networking opportunities
Recognized brand name
Exit strategy
Call 1-888-SPARKY 8™
ask for Cassidy, or visit our website
www4.thankyoumistersparky.com
Ad 11
Minn. Reg. F-5451
Mister Sparky Franchising, L.L.C., 50 Central Avenue, Suite 920, Sarasota, FL 34236
YOU SHOULD NOT TAKE THE FRANCHISOR’S STATEMENT OR THEIR EXPERIENCES AS
AN INFERENCE THAT A PURCHASE OF A FRANCHISE IS A SAFE INVESTMENT OR THAT
FAILURE, LOSS OR DEFAULT IS IMPOSSIBLE OR UNLIKELY, OR THAT EARNINGS OR
PROFITS ARE ASSURED.
SPRING 2008 TSC 33
Success Story
4/9/08
4:40 PM
Page 34
backs those products with six guarantees.
“We’ve had years of brainwashing
from the industry and manufacturers that
it’s all about choosing the brand,” DeForest
said. “Through our education with SGI and
sales training, we found it’s not about that;
it’s about personal relationships and our
commitment to the product after the sale.”
With branding, Gregg’s has reached
a higher level of awareness in the community.
During a Solo Name Awareness
Percentage (SNAP) survey, 100 people in
Saskatoon were asked to name three
plumbing and heating providers in the
city. Nearly 68 percent gave the Gregg’s
name.
• Rewarding employees. The company
rewards employees with profit sharing and
by providing other bonuses and incentives.
In 2007, two of the company’s HVAC
comfort advisors generated $1-million in
sales. In a country with huge labor shortages, the company’s higher salaries and
benefits help them maintain a steady
workforce.
• Gregg’s purchased 13 super trucks, which
are large, enclosed walk-in trucks stocked with
items normally found at the warehouse. The
trucks allow technicians to serve cus-
Worried
About This
Year’s
Profits?
Consider converting to a One Hour
Heating & Air Conditioning franchise!
Transform your business into a powerful tool for achieving
freedom and flexibility! You’ll thank us for:
• Software systems
• Marketing
• Sales support services
• Networking opportunities
• Recognized brand name
• Exit strategy
Ad 21
Call 1-877-INFO 1HR
ask for Carly, or visit our website
www4.thankyouonehour.com
One Hour Heating & Air ConditioningTM
is ranked #1 for the fastest growing franchises
in the U.S. by Franchise Times magazine
in March 2007!
Franchise Times Monitor calculates the Fast 55 using the following methodology: 1) The brand has been franchising for five years or less. 2) They must exhibit
positive franchise unit growth for each year during this period. 3) They are awarded a ranking by the fastest unit growth during the last year. Rankings are
neither approved nor supported by your applicable state franchise board.
One Hour Heating & Air ConditioningTM has moved up from #258 (2007) to #162 in the U.S.
by Entrepreneur magazine's Franchise 500®.
*The source is Entrepreneur magazine and their Franchise 500® rating system, which annually initiates
questionnaires to all known U.S. and Canadian franchisors. Judging criteria is financial strength and
stability, growth rate and size of the system, including the number of years in business and length of
time franchising, startup costs, litigation, percentage of terminations and whether financing is provided,
and upon audited financials. Based upon the approximately 75% of responses they receive, of the number of units added
to the franchisor between July 1and June 30, those rankings are awarded in January.
Minn. Ref F-4593 One Hour Air Conditioning & Heating LLC., 50 Central Ave Suite 920, Sarasota, FL 34236
YOU SHOULD NOT TAKE THE FRANCHISOR’S STATEMENT OR THEIR EXPERIENCES AS AN INFERENCE THAT A
PURCHASE OF A FRANCHISE IS A SAFE INVESTMENT OR THAT FAILURE, LOSS OR DEFAULT IS IMPOSSIBLE OR
UNLIKELY, OR THAT EARNINGS OR PROFITS ARE ASSURED.
34 TSC SPRING 2008
tomers better and more quickly, without
having to take last-minute trips to the
warehouse. Their stock includes numerous options of faucets, water heaters,
toilet basins and other supplies. By doing
a better job stocking parts, Gregg
technicians are more productive. They
don’t have to wait for parts.
• Monthly scoreboard. Gregg’s technicians are consistently top performers on
the AirTime Canada monthly scoreboard,
which allows technicians to compare their
sales with each other and other top performers within AirTime Canada.
The monthly scoreboard helps
employees set goals and push to reach
those goals. “Everyone wants to be number one,” DeForest said.
• Savings through BuyMax®.
As members of PSI and AirTime, Gregg’s
can take advantage of special buys
through BuyMax, the buying service for
HVAC, plumbing, electrical and roofing
contractors.
The company saved $80,000 when it
made a bulk purchase of HVAC equipment
– more than enough to pay for its membership in AirTime and PSI for a year.
At first, finding a way to help his
company reach its fullest potential was a
mystery to Gregg.
After implementing a new set of
systems and procedures, things became
more clear.
But as Gregg’s continues to outpace
the competition, another mystery has
emerged.
“Our competitors can’t figure out
what we’re doing,” Gregg said. “They can’t
understand how we’ve had the growth we
have ... and why we have a beautiful facility.
“It’s the old iceberg theory,” Gregg
said. “Our competitors drive down the
street and can only see 10 percent of the
iceberg, because that’s what’s sticking out
above the water.
“The other 90 percent is hidden.
Unless they come inside and see our operations, they don’t really understand how
we’re doing it,” he said. “They’re tremendously curious – they’d like to know what
we’re doing right.”
What Jim Gregg learned:
1. Commit to a program and
follow through.
2. Be patient with new systems and
implement them step-by-step.
3. Follow the system.
4. Ask for help.
5. Don’t try to reinvent the wheel.
6. Don’t try to implement too
many systems at once.
4/9/08
4:40 PM
Page 35
Ad 22
4/9/08
4:40 PM
Page 36
This... or This
You’ll thank One Hour for the free time!
You’ve worked hard building your heating and air conditioning business into a success story. But admit it…you’ve
spent so much time working, you’ve missed doing some of your favorite things - like tracking big game. Isn’t it time
to consider converting your business into a One Hour Heating & Air Conditioning™ franchise? We’ve developed
turnkey operational systems that will help your business run smoothly even when you’ve gone hunting. Our
software systems, marketing, sales support services, networking opportunities and nationally recognized brand
name help you mature your business and live your life.
If you want to transform your business into a tool for achieving freedom and flexibility, call One Hour
Heating & Air Conditioning ™ at 1-877-INFO 1HR (463-6147); ask for Carly, or visit our website
www4.thankyouonehour.com.
Call 1-877-INFO 1HR ask for Carly,
or visit our website www4.thankyouonehour.com
One Hour Heating & Air ConditioningTM
is ranked #1 for the fastest growing franchises in the
U.S. by Franchise Times magazine in March 2007!
Franchise Times Monitor calculates the Fast 55 using the following methodology: 1) The brand has been franchising for five years or less. 2) They must exhibit positive franchise unit growth for
each year during this period. 3) They are awarded a ranking by the fastest unit growth during the last year. Rankings are neither approved nor supported by your applicable state franchise board.
One Hour Heating & Air ConditioningTM has moved up from #258 (2007) to #162 in the U.S. by Entrepreneur magazine's Franchise 500®.
*The source is Entrepreneur magazine and their Franchise 500® rating system, which annually initiates questionnaires to all known U.S. and Canadian franchisors.
Judging criteria is financial strength and stability, growth rate and size of the system, including the number of years in business and length of time franchising, startup
costs, litigation, percentage of terminations and whether financing is provided, and upon audited financials. Based upon the approximately 75% of responses they receive,
of the number of units added to the franchisor between July 1and June 30, those rankings are awarded in January.
Minn. Ref F-4593 One Hour Air Conditioning & Heating LLC., 50 Central Ave Suite 920, Sarasota, FL 34236
Ad 21

tony silva`s amazing turnaround tony silva`s amazing

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