When the reward is great, the effort to succeed is great.

An economics professor made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class "... All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.... (substituting grades for dollars - something closer to home and more readily understood by all).

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy.
When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that. (Please pass this on)
These are possibly the 5 best sentences you'll ever read and all applicable to this experiment:

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it.

5. When half of the people get the idea that they do not have to work and sit around protesting because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

Planning for 2012

It's that time of year when I begin contemplating about how my year turned out and what I need to do, or plan to do for next year. Because of that, I created a checklist of questions for my contractor friends to help you plan for the new year. This is simply a list of things to get you thinking on some possible improvements in your life and business.
What are the obvious issues and challenges that have propped up over and over again that need resolution so that it doesn't repeat in 2012? (make a plan of action for resolution)
What are the training needs of your employees and what could be done to fulfill those needs? Include yourself in this group.
Take time to evaluate new technologies and software that will enhance and improve your business objectives and personal productivity.
What kind of things do you need to stop doing that really add no value to your career or business?
What kind of things do you need to start doing that adds value to your career and business?
Take some time to evaluate all of your financials and determine what part of your business may need some attention, change, updating etc. to reduce overhead, and increase net profit margin.
Make it a point to solicit ideas and recommendations from your team members. Believe me, I've got some of the best ideas from the folks on the front lines. Unfortunately in most cases they are never listened to. So try listening and if it pays off, they should be rewarded accordingly.

Would You Spend $49.99 to Get Some Great Business Tips?

Basically, Frank Besednjak has decided to make segments of his great workshops available for viewing online. He has teamed up with Nordyne University to help create one of the worlds best overall HVAC Business training and support online networks available anywhere! These programs are professionally produced in a professional studio.

The first in a series of online seminars is now available. This program is a compilation of great ideas and methods used by some of the best contractors in the country. The title is "Simple Tools To Increase Profit Margins Now" and that is exactly what it is!

This first program focuses on some basic fundamental ideas that you could use right now to battle the issues of this economy and help move you ahead of your competition.

The $49.99 price is a limited time offer and will not last , so take advantage of this special price and watch the program today!

Here is a description of the program content: Just click anywhere below to view the video:
"A presentation and discussion on new and proven ideas, methods and systems currently practiced by successful contractors to gain a competitive advantage in their market. This program is designed to increase overall business performance by offering participants new methods, ideas and strategies that will enhance employee professionalism, improve profitability and increase customer loyalty."

How To Claim Your Listing on Google

How do I know if my listing is verified and mine?

Type your company name and city in Google. Click on your listing, if it is there. Look in the upper right hand corner. if it says "Edit this place - Business owner?" the listing has not been claimed and you need to claim it. If it says "Owner Verified" it has been claimed and hopefully it was done by you or someone in your company.

So let's say it needs to be claimed and verified, here are the steps to do it:

1. Go to Google.com
2. If you don't have one, create a Google account by clicking on gmail on the top of the page (This will also give you a new, email address)
3. Click on "create an account"
4. Once you have a Gmail / Google account go back to Google.com
5. Bottom of page Click on "Business Solutions"
6. Click on "Google Places" listed under "Reach Local Customers" near the bottom of the page.
7. Sign in with your Gmail account
8. Follow the directions
9. You will be sent by regular mail a verification password that will instruct you how to complete the listing verification.

What is cool now is that you can add graphics, videos, customer quotes and links to your website from this Google listing. You also have the option of putting in key words that you believe customers will type in when looking for your services. This will direct more business to you. All of this is free!

Three Employee Types

Minders, Finders and Grinders
While at sea in the Navy, (which seemed to be forever) they offered college credit courses. During one of the Principles of Management classes the professor mentioned that there are three employee types, Finders, Minders and Grinders. The Finders were the savvy customer oriented, sales type folks who weren't that great technically, but everyone loved them. The Minders were the great coaches, leaders, spokespeople and supervisors. Great Minders were process-oriented and dedicated to making the team work well together. The Grinders were the highly technical yet customer unfriendly types. They did great as long as they were left alone and required little communication with others. Most people are a mixture of all three with certain characteristics that make them stronger in one of the areas. What I have found during my many years of management in Sony, RCA and GE, is that when you have someone who is very strong in one of the categories, they are usually weak in the other two.

It takes a great manager or business owner to identify these specific talents in each individual and know how to best handle them so they meet the objectives of the business. While running a service shop for RCA, I've had to take one of the most technically competent men and move him to a position that requires very little customer interaction. I did this because I wanted to continue to use his talents and could not get him to improve his interpersonal skills sufficiently, no matter what I did. This guy would actually tell customers they were stupid and how they were wasting his valuable time! I wanted to fire him on several occasions and yelling or counseling didn't help. He was one of the most talented guys in the country, technically, I did not want to send him to my competitors. So after some discussion and thought, I just moved him into a role that limited his contact with customers to . . . never. So we locked him in a room away from everyone while he did his thing. Occasionally we would throw some food into the room just to keep him alive. (I'm just kidding) If an employee is extremely valuable technically, yet challenged in interpersonal skills, sometimes you have to be creative and redefine his or her role so it doesn't include customer interaction. For some, a good script, some role play and practice will get these folks over the hump of communicating effectively.

As far as the strong Finders who are technically challenged, technical training should help in most cases, or you can use them a sales professional and/or lead generator only.

Of course you still have the variety of customer personalities to deal with. Some folks love to carry on a conversation and build a relationship with the service professional whereas others just want you to do your job, give them the bill and get out.

I really believe the great service professionals and great managers are those who recognize that there are unique differences in everyone and the method in handling every person is unique also. Having the ability to recognize these differences both in employees and customers and responding to them appropriately is what really makes the service experience you offer a great one.

8 Rules of Great Leadership

1. Manage processes not people:
Set up systems, methods, guidelines and routines that everyone understands
Be open to new technologies and ideas that improve performance, quality and profitability

2.Make sure your team understands your company's vision:
Say it, repeat it, make them live it and breath it
Have a vision statement everywhere.
Encourage them for ideas and recommendations that meet the vision

3. Be positive, optimistic and energetic
Don't sugarcoat, just have a can-do attitude
Remember, you are the coach
Self-confidence energizes people and gives them the courage to stretch and take risks and achieve their dreams
4. Be transparent
Your team needs to know how you will react, before you react
Maintain total integrity

5. Have the courage to make unpopular decisions and gut calls
This is not a popularity contest
"Conflict is the conduit to resolution"
Don't be a consensus builder, follow your gut feeling

6. Ask many probing questions, bordering on skepticism
As a leader your job is to find out what's going on
Constantly look for a better, faster easier way
If something doesn't make sense, say so and probe for answers

7. Promote risk taking and learning by setting an example
Don't delegate authority than reprimand for using it
Just because you're the boss doesn't mean you know everything
Encourage people to generate new ideas and reward them

8. Great leaders celebrate and reward success
Share the wealth, as people perform, they need to be rewarded
Grab every opportunity when someone does well and make a big deal out of it
Celebrating makes people feel like winners!


Interested in hearing or seeing more? Sign up for one of my workshops or you can see me at the Annual ACCA Contracting Week, Service Managers' Forum. This event will take place October 18 - 21, 2011 in Nashville, TN.

https://www.acca.org/education/contractingweek/smf

Do you have any comments or feedback? Email me at frankpresents@gmail.com

Are You a Boss or a Leader?

I'm preparing a workshop for recently-promoted supervisors and I thought I would share segments of the class with you:
What is the difference between a boss or leader?
A Boss:
Is more concerned about how things look to upper management rather than what his employees think
Is simply a conduit of information from up to down
Worries about himself first
Sees his role as being above everyone else
Needs to be in control of everything
Looks at training and development as non-productive and unnecessary
Uses his people as a buffer or someone to blame when things don't go well
Micro-manages people rather than managing processes
A Leader or Coach:
Will get the most out of the people on the "team" by working with them to achieve their common goals and objectives together.
Takes care of the members of the team first and serves as a buffer between upper management and employees
Encourages recommendations and ideas from his team and follows through on them
Is not afraid to "get his or her hands dirty" and spend time out on the job with his or her people
Is honest and candid and tells it like it is
Hires the best people they can afford
Encourages employee training and development and makes it a priority
Creates systems and processes that make the workplace operate more efficiently
Your main goal is to do whatever it takes to remove any obstacles and challenges that may hinder the performance of the team and overall business objectives. At the same time, you must also strive and continue to seek opportunities, ideas and initiatives that enhance the team's performance and business objectives.

Interested in hearing or seeing more? Sign up for one of my workshops or you can see me at the Annual ACCA Contracting Week, Service Managers' Forum. This event will take place October 18 - 21, 2011 in Nashville, TN.
https://www.acca.org/education/contractingweek/smf

What does your distributor do for you?

Recently, I asked the following question online to a Linked-In group:
" I'm working on a project with a group of HVAC distributors & suppliers. What would you contractors and service specialists say distributors need to do, to improve services and customer loyalty?"

Here are some of the answers received:

1. Stop asking me what you can do to get me to buy more of (fill in the brand or product), and start asking me what is going on in my business, what problems we are having, and then bring me SOLUTIONS. I'll buy more of those all day long, and as long as you keep solving my problems, I'll never buy from anyone else.

2. Customer service at the front line would be an area I would focus attention on. These distributors should understand, that the average small company wants to build relationships with people they like. I know it sounds to simple, but it's true.

3. Help them with their business. Connect them to resources needed to help them become profitable, have positive cash flow and grow their business. A contractor can buy things from whomever, but they could become a loyal buyer if you help them with their success!

4. When I take the time to pre order my equipment and supplies, don't take walk-ins in front of me and keep me waiting in the store, have my things and my printed order ready for loading and checking out. Stores should stay open later in the evenings and on Sat.

5. I believe it is important for distributors to build lasting relationships with us (HVAC contractors) and to help us in devising solutions for problems. Working collaboratively creates a strong force for exceptional customer service in addition to considerable cost-savings and top quality efficiency. In addition, I believe "attitude" in response to problems is extremely important. I am much more likely to continue patronizing a supplier who is always ready to correct a problem expeditiously versus displaying an "it's not my problem" attitude or appearing "annoyed" at the interruption.

6. Stop selling boxes and start selling and believing in the product you sell, and not just selling a cardboard box! If I just wanted to buy a box, I would go to the internet, lowes, .... (you get the idea) I want SERVICE AND KNOWLEDGE.

Do you have any more comments? Email me at frankpresents@gmail.com

Hire a Professional

This is directed to all of those folks who try to do everything in-house in order to save money.
Please pardon my sarcasm. However I think it is so funny how we, the folks in the business of plumbing and HVAC service and contracting, consistently repeat the mantra about hiring a professional to do a professional job. Yet I keep seeing things on the online forums asking questions like what equipment you need to edit videos for their website or to put on you tube!?! Really? Really!?! Do you have enough free time to start a video production business? Would you hire you to edit a video and pay your fee? It's just like saying; "What tools do you guys recommend to do home brain surgery?". If you want to create a professional looking video, and want it done right, hire a professional. I've seen some real train wrecks that were supposed to be a marketing or training video, but were made in-house. There are many great, low cost production companies out there, who will do it at a reasonable price. They are hurting for business and you can get a great deal now. I coach, speak and consult for a living in the area of my expertise, field service management. When my air conditioning stops working, I hire a professional, licensed contractor. When I need a video produced and edited, I hire a professional production company. When I need a direct mail campaign done, I pay a professional marketing and direct mail expert. Why do I hire professionals? Because my talents could be better used elsewhere, they will do a better job, and I am too expensive to do those things anyway.

I've had to get on several of my clients who try to do it all in house, print shop, direct mail, website development, customer satisfaction surveys, etc, one even printed and designed their own t-shirts (yes, they looked like it to). They do it simply because they cannot handle the idea of someone else making a profit off of something they believe they can do themselves.

I've even known one contracting business that spent over $80,000 when it was all done, trying to create their own service management software that never worked and had all kinds of problems, all of that, to try and save a few bucks. Believe me, you cannot compete with people who do it for a living everyday. Once you look at the internal costs and time spent trying to do something that you have minimal expertise in, you'll find you would have been better off hiring a professional.

Stop stressing yourself out trying to be everything and do everything. Yes, it does cost more to pay someone else, and it is okay for someone to make a profit off of you. Focus on what you do well, and do that.

Let's try to "Walk the Talk".

Busy? Raise Your Prices!

I remember when I was in Marketing 101 in college and we discussed supply and demand. Below is a description from Wikipedia and how it describes the term "Supply and Demand":

The four basic laws of supply and demand are:
If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.
If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity.
If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.

The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product.

So what am I trying to say, you ask? When was the last time you bought bread, milk or even gasoline and it stayed the same price every time you bought it? Prices for everything are constantly changing depending upon workload, inventory, customer demand and a volume of other factors. When is the last time you had a price change? Just like every other business you need to adjust your price depending upon demand. During busy times, raise your price 10 to 20%. During slow times offer a lower rate. You could even postpone major, time consuming jobs until business is slow provided you get a deposit and the customers equipment is still usable, to a time when you could use the work by offering the the discounted price.

I even adjust my workshop prices depending upon the popularity of that particular location, if you need certain state credits and my costs for that location. Look at my schedule at www.frankpresents.com and see for yourself.

What should you do? Well, if summer is your busy time, increase your price beginning Memorial Day weekend, then drop it back to normal after Labor Day. I've had some of my clients say things like "What if a customer finds out you just raised your price?" Okay, so agree and say "Yes, it's unfortunate how everything is going up, just yesterday it cost me almost $90 to fill up my truck. Hopefully it will go back down to a reasonable price this fall."

There you go, give it a shot and see what happens, yes you may lose some business, but odds are it will be the price shoppers anyway and if you raise your price 10% and lose 5% of your business, Great Job! Less Work, More Money!

Motivating Younger Employees

There was a time when most people looked at their job as a reflection of who they are as a person. In recent times and more with younger employees, their social life and status amongst their friends dictates who they are, a job is simply a means to help them elevate their social status. Geezers like me believe that our career is who we are and many of us can't comprehend the motivational factors of this younger group. We were driven by the idea of "Improving our financial status so we could take care of our immediate and future needs" People now are driven by "What can I do that will improve my social status". Take a moment to look over "Abraham Maslow's Heirarchy of Needs" and it will explain it. Here is a link: http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm

Us old guys used to, and still think as if we are on the bottom two levels. Since our younger folks have not really had to be too concerned about having someplace to stay that they could call their own home, or fear of losing everything or worrying about how to feed their family. They have become a society of people who, no matter what, have all of their basic fundamental needs taken care of, no matter what. Compared to the rest of the world, our poorest would be considered rich. People don't fret that much about whether they have food, they are more concerned about having Direct TV or the latest, greatest pair of basketball shoes or smart phones. This group is motivated by esteem and status.

So Frank, what do I do? You ask. Just understand that this is the way it is and sometimes money isn't the main motivating factor. Provided you have good measurement systems that everyone understands and know how they may be able to improve, set up reasonable goals with rewards for success that may include more free paid time off with friends and family. It may be status or esteem building awards such as a night on the town, paid for by you, or maybe a gift certificate to a nearby mall. Just be creative and realize what you are dealing with and respond accordingly.

I'm sure I'll get the typical responses like "They should be happy they have a job" or "A paycheck should be considered award enough" That worked for me and you other old guys, but does really not apply 100% now.

The Value of Service Contracts

While working at the RCA Service company many years ago I remember one common theme. "Sell Service Contracts". This indeed was the main revenue stream for the business.What are the benefits?
1. Provides a continuous revenue stream
2. Connects your customer to you. Why would they call anyone else? They have an agreement with you.
3. Adds value to your business. One of the first questions you'll be asked when you decide to sell your business is "How many contract customers do you have?"
4. With regular maintenance checks, it allows your field people to keep busy during the slow times.
5. Improves customer relations. You have less catastrophic failures because service is rendered regularly for minor problems rather than during emergency no cools or no heats.

Ready for Summer?

Are You Ready for Summer?

This is the time of year when most of my clients get too busy to talk to me. It's kind of good because it allows me time to get a vacation, learn some new information, do some research and catch up on things around the house.
Since most of you are in the heating and air conditioning business this is the "make it or break it" time of year. I hope you make it . . so I put together a few tips that may help you reach your goals.
1. Set a goal
So many times we jump into the busy season with no planning, no forecasting and no goal setting. Take some time before it really gets crazy to put some thought into what you expect to accomplish this summer as it compared to last summer. Learn from your mistakes from a year ago.

2. Raise your price
Since demand goes up, so should price. Every other business in the world does it, you should too. Every time you go to buy gas or even milk the price is different from the last time you bought it. Set your prices to increase when you're busy and decrease when you're not. If possible attempt to divert non-emergency work to the fall when things slow down and your price is lower. I've had contractors ask me questions like "What if one customer tells another that they paid a lower price?" Your answer should be "My price goes up when I'm busy." I see nothing wrong with that.

3. Use technologies
Over the last few months I've reviewed dozens of technologies to help contractors work more effectively and efficiently. If you have not taken the time to review the various dispatch, pricing, GPS systems and mobile devices in the last two to three years, you are missing out on some very useful systems and products that will more than pay for themselves in a matter of a few weeks. Call me if you want more information.

4. Be customer friendly
Sometimes we get so overwhelmed with business that we forget about keeping time commitments, calling people back, being friendly, thanking them for their loyalty, acting professionally and answering the phone properly. You want these people to remember you for what you did well, not what you did wrong.

5. Be creative in your work schedules
Air conditioning systems fail whenever they want not just during your normal working hours. One of my clients has her technicians work four, twelve hour days followed by three days off one week and four days of the next. This allows them to capture late calls and gives them a nice break during the busy times. They also stagger starting times to begin anytime between 6AM and 11AM. This allows them to provide regular service hours for clients from 6AM to 11PM. Don't be afraid to work people overtime if they want to, it's cheaper than hiring someone.

Top 10 Ways of Knowing Your Prices are Too Low!

. . . and You Need to Come to My Class!
1. You get every job that you quote on the phone
If every price shopper that calls sets up an appointment with you, that means you are the cheapest, and if you are the cheapest, in my opinion, that is nothing to brag about. (Read some of my previous blogs about trying to be like Walmart, the low price leader in your market)
2. You are really busy, but still can't afford to buy the things you want? Do I really need a comment here?
3. When someone asks you what your net profit margin was for last year, you don't know what they are talking about. Are you a businessman or not? Go buy the book "How To Sell At Margins Higher Than Your Competitors, by Lawrence L. Steinmetz.
4. You go by the name of "Discount, Budget, Cheap or Fly by Night" Just trying to be funny here . . . or maybe not.
5. You say the phrase "At least it is work" or "At least it is keeping us busy" at least once per week! Personally if I wasn't making a profit doing work, I would go fishing all day instead.
6. You're slogan is "We will beat any price!" It should be followed by "And we'll go broke doing it!"
7. You are afraid to answer the phone. Those pesky bill collectors actually want their money too!
8. You are not set up with a regular paycheck and only pay yourself when there is some cash left over. Your pay should be considered as a regular part of overhead.
9. You have no retirement plan. You should charge enough to have funds set aside regularly to take care of you and your family when you decide to leave the business. Or, have enough service plans & contracts to make your business have value when you choose to sell it. I recommend you seek a financial consultant's help here for a plan to exit your business some day.
10. When you call to schedule a continuing education class with me, you say I am too expensive and you can get it cheaper somewhere else. If you think an extra fifty or sixty bucks isn't worth getting information that will help you turn your business around, there is nothing I can do for you. I would rather not have you as a client.

What To Do About Gas Prices!

During my last three workshops the topic of what to do about gas prices came up. I usually answer a question by asking the group how they handle it. It went like this . . . "Frank, gas prices are going crazy, what do you think about adding on a surcharge to each invoice of maybe ten or twenty dollars to cover the increase in fuel prices?" I then of course asked the class what they thought and received several different responses such as "We just increase our fee enough to cover the additional cost" or "We add $15 to each call for fuel along with a $10 shop supply fee."

I don't know about you but I get very annoyed when a company adds on extra fees. In fact two years ago I went to buy some tires for my car. After some negotiating we agreed on the price of $145 per tire. An hour and half later the representative tells me my car is ready. I look at the bill and it totals $720! I told the man that this is $35 per tire more than we agreed. He said the $35 was for valve stems and balancing. I told him I didn't request new valve stems and balancing. He explained that they always do this when they replace tires. So I said "If this is a part of the normal installation of tires, why do you charge extra?" I then directed him to put my old valve stems back on and unbalance my tires. Of course he said that it was not possible to do that. At that point I demanded to have my old tires put back on and was no longer interested in doing business with them. Of course he decided to go ahead and accept my original agreement and take the $145 per tire.

To me, when you add on something that is required for each job, just include it in the price, please don't annoy me and your customers with add-ons! Imagine going into a restaurant, ordering a steak for the price of $22 and getting a bill for $30 with an add-on of $8 for preparation and cooking, or an add-on of $2 for a fuel surcharge, or kitchen supplies.

If your costs go up, increase your total fees. Customers are annoyed enough about fuel costs, no need to remind them. Plus, who is reimbursing them for fuel costs when they go to work? That is an argument you may get when you add it on separately.

So in conclusion, get rid of the annoying add-on charges. Just put it in your total fee. In fact the less you break out your pricing the less ammunition you have for those folks who like to pick apart everything.

Quit Being a Wimp!

I was presenting a workshop recently and the subject of how to handle employee problems surfaced. One of the attendees seemed to have encountered every employee issue known to man. Every time I said something or made a recommendation to someone's inquiry he would say "Oh yeah, well what about this! He would then go on to explain some weird scenario of circumstances that may only occur once in a million years. I could almost bet that this was an attempt to stump the teacher and impress his friends, but I played along for his entertainment and the amusement of everyone else in the room. I've been facilitating meetings and training sessions for about twenty five years, so I have already seen everything.

One of the questions he did bring up was something that I believe occurs in just about every business, and I was glad he brought it up. He asked; "I know it's important to sit and have a review with your employees at least once a year or more. You try and make it sound like it is so easy, I don't know about everyone else in this room, but I hate it. In fact I hate doing it so much that I can't sleep the night before the reviews. What would you recommend to make this process easier and less stressful?"

To me this was the best question of the day and I was very glad that he had the guts to bring it up! My response: First, remember this is a review, a review is simply a formal meeting to discuss everything everyone already knows.

If you look up the word review in the dictionary it says "the process of going over something again". So if this is the process of going over something again, why should it be difficult or stressful? I believe an employee needs to know when they are not performing well as soon as the poor performance is noticed. If you were coaching a baseball team, would you mention a critical mistake a player was making immediately or would you wait until the end of the season to discuss it? The same applies at work.

So if the formal review is a discussion of everything you have already discussed, and everyone in the room is already aware of what is happening, there shouldn't be any stress! It's just a formality!

Let your team know what they are doing right and what they are doing wrong, all the time. Remember you are the coach, they are the team. If we all do our job and do it well, we win more often! So don't be a wimp, tell people regularly what you think and how they are doing, everyone will be happier!
Strategic Alliance and Recommendation Announcement
For the last ten years I've received request after request an who I recommend for this and who I recommend for that. After much research and time spent reviewing products I have so far decided that there are two products that hit the highly recommended by Frank list and they are:
Ascente - Looking for a complete package to manage your business? The Service Management Software by Compusource Partnered with software giants IBM, Microsoft and Open Systems allows Compusource's Ascente to be extremely powerful, yet very simple to use. It was developed with Microsoft Visual Basic to run on the latest Microsoft Windows operating system using SQL databases and works seamlessly with Traverse, a leading service contractor accounting software package. And because of Ascente's flexible design and configuration, it can be used as plumbing software, construction software, HVAC software, electrical and security software. Call me personally for more information or a free demo. 888-538-5383.
EAI Flat Rate Program for HVAC & Plumbing - This program is by far the easiest to use out of any flat rate program available anywhere. If you don't need all the bells and whistles and just want a flat rate program that doesn't put you in the poor house, this is it! I especially liked the idea that you do not have to pay monthly or annual fees for updates and if you make a change, it costs you nothing and you could print as many books as you want on your own printer. Fantastic customer support. The best part of all the price, $1299. Call Jamie at 513-619-4808 for a free demo. Please tell him Frank referred you.
As I evaluate what's out there and find the best of the best, I'll let you know. Why? Because I want you to be successful, and if you're successful, I will be too!

You Are Running Out of Time to Change Your Business!

Cut Back or Not to Cut Back?

Choose Not to Participate in Today's Economic Mess!

I recently read an article written by another consultant discussing the economy today and whether or not cutting back, or shrinking your business is a good idea. The writer mentioned that if you cut back you may potentially lose customers and this would result in your competition taking them and gaining a customer, who over a lifetime may generate $30,000 to $50,000!

I do agree that you do whatever it takes to keep customers, however, common sense has to prevail. For example . . . In my business I was able to successfully reduce annual overhead costs by almost $100,000. This was done by eliminating staff, using technology and moving back into my house rather than renting an office. Because of the reduction of overhead, I was able to increase my margins while also reducing my workshop fees to my clients by about 15 to 20% for most of my classes and only charging a premium for those resort locations that cost me more. The result in lowering price was an overall increase of my customer base and an increase of year to date revenues by over 28%. I also enjoyed a reduction of overhead of almost 35%. I am enjoying the best year I have ever had since I started business sixteen years ago. I have more money for new business ventures and I also gave myself a nice raise.

Hey, I'm all about doing everything you can to grow business and do whatever it takes to get every customer. But, things are very different today, you need to be smarter and you need to find better and faster ways to do business. For example here are some things you need to look at:

• Streamlining operations; What stupid things happen everyday in your company that add no value? What could you eliminate or change right now, today, that may save a few dollars everyday? Ask your team for cost saving ideas and reward them for the best ideas.
•Find poor performers; fix them or fire them. Look through my blogs for a 10-step process on handling this.
•Focus on a particular customer type; this means you have to decide to turn away some business. Think about this . . . Does the same customer who regularly shops at Walmart also make regular shopping trips to Bloomingdales? Most likely not. However, both places are successful. You need to decide what type of client fits your profile and focus on them.
•Is there anyway to reduce expenses enough to be able to offer reduced prices or specials for your customers? (I know, I am the guy who told you that you need to raise your price and now I tell you to lower it) I am looking at increasing margins by reducing expenses first. Once that happens you should pass along some of the savings to your customers. That's what I did.
•You are not Walmart and never will be! Occasionally either during one of my classes or one of the online forums, I'll get someone saying something like "Walmart is the cheapest and look how succesful they are" Walmart has the luxury of being the biggest and they tell their vendors what to do and how to price their products. There is only one Walmart. When you get big enough to tell General Electric, Carrier, Lennox, Trane, Watsco, American Standard, etc. what to do, call me and I'll help you write a book on how you did it.
•Don't be afraid to raise prices for premier services.
You're probably wondering what this means. Well, if there is anything special that you offer, IAQ surveys, moisture migration analysis, load calculations, building envelope analysis, etc. etc. that no one else does in your area, you should be paid more. You are the expert, they are not.

Decide today to not participate in this slow economy. Make changes within your business and the way you do business to make your organization more streamlined, more efficient and the best and fastest in your market. Let your competition decide to sit and try and wait it out while you take advantage of this time to be the best you can be by adjusting to change and re-engineering for the future. There is no better time to start than right now. Bigger does not necessarily mean better.

So you think your team needs training?

This morning while going through my emails I happened to read a request for help on the Service Roundtable. (By the way, if you want some great information and help in your contracting business, check them out at serviceroundtable.com, I highly recommend joining and tell them I sent you) The request came from an HVAC Contractor asking if anyone could recommend some customer service and sales training for his people. Naturally some folks responded with some recommendations for training available.

Since I have a training management and training development background, a bunch of questions developed in my head.
Why do you think you need training?
What event caused you to realize you need help?
Did you determine the root cause of the event that made you believe you needed training?

Is there another solution that could resolve the issue without having to do training?
Is it a lack of knowledge and training that is the culprit?

When I managed the training department at GE I regularly had managers from around the country call and say "I need someone to come here and train my people on _____" I would either send one of my people or visit the location myself to attempt and make an assessment of the situation. Most of the time I found that the problem was really not a result of lack of knowledge or training.


So many people, especially managers look at training as the cure for a problem. Keep in mind, training, education, learning or the communication of information is done solely to provide an employee with the knowledge to do their job. You would provide training based on the idea that they did not have the information or knowledge to do the job. So, if you had an employee that had a lack of motivation, training can not solve your problem.

There are five reasons why employees do not perform well and only one of them is a lack of knowledge or training. The other four are:
The employee has no idea what you expect from them
A non-work related problem is distracting them
The employee is not suited for the job
The employee doesn't care

Before you go buying a training program or having someone like me come in and charge you thousands of dollars, take a look at the other options and really focus on what brought you to the point of believing you need help.

One of things that I always ask clients before I start developing a training program for them is "What specifically do you want your people to do differently after going through the training?" Even if it is a list of things, I'm okay with that. Now we can look at the root cause of the problem and go from there.

I look at it this way, let's say you get headaches everyday and you take tylenol several times a day to eliminate the pain. Does this mean your headache is a result of the lack of tylenol? This is what I mean by getting to the root cause.

The Art of Success

We just celebrated my step son's sixteenth birthday and this morning I also realized that I've ran my own business for just over sixteen years. I've had my ups and of course my downs. I've had many clients who have taught me many things and have had many clients who have learned many things from me.

There are several things however that I've come to know over the years that is essential to success. It is really not how much education you have, it is not how much experience you have, or really that much about who you know or where you've been or what you've done or even what you've seen that really makes the difference.

I've come to the conclusion that success, at least for me comes as a result of only a couple of things. First, my belief in God. No matter how rough life may appear to be and no matter how many obstacles have been thrown in my path, He is always there for me, cheering me on, telling me it will be okay, holding my hand and sometimes even carrying me on his shoulders.

Secondly, I come to realize that nothing is by chance and everything has a reason, it may make no sense now but eventually it will.

Third, you can't walk in the dark and expect not to trip and fall. What I mean by this is that so many people I have met, have no clear goals in life, no set path or direction, no long term objectives. To me, this is like walking or running in total darkness. It is so easy to decide to make some goals in life and turn those lights on so you limit the chance of tripping or falling or getting lost.

Fourth, you need to decide to be successful. My wonderful wife has the most patience of anyone I know and besides being the most beautiful woman on earth, she is the most tolerant and understanding person I have ever met. Many times I would tell her, just wait, we will be fine, things are going to be great one day and she would just smile and say yes, I know, I believe in you. As a child I learned to do without, we grew up on the eastside of Cleveland in a not so nice area and I learned to appreciate many things and always told myself when I saw someone who had become successful that someday I will be like that.

Fifth, the best way I can explain this is by the following quotes:
“The worst day in a man’s life is when he sits down and begins thinking about how he can get something for nothing” – Thomas Jefferson

“Opportunity is missed by most people because it is dressed in overalls and looks like work” – Thomas Edison

“You cannot escape the responsibility of tomorrow by evading it today” – Abraham Lincoln

“Excellence is doing ordinary things, extraordinarily well” - John W. Gardner

Basically, nothing is easy. You want something, you will have to work for it.

Sixth. Make work fun. “Some of the worst days of doing what you like are much better than some of the best days doing what you hate” – Frank Besednjak
If you enjoy your job, the odds of success are so much greater.

Seventh. Jack Welch once said "Accept things for what they are, rather than what you wish them to be". Many people cannot accept what is real and live in another dimension of a faux life. Totally ignoring what is clearly in front of their face, living in a land that does not exist and refusing to face reality. The biggest obstacle in most peoples lives is the unwillingness to deal with the truth.

Last. Always maintain absolute integrity . . . “If you have integrity, nothing else matters.  If you don't have integrity, nothing else matters.  - Alan Simpson

So there you have it. It worked for me.

Texting at Work

Seems like everytime I present a workshop and start discussing employee performance, the subject of texting and cell phones enters the conversation. There are a variety of views on the matter, but all agree that it does have an impact on productivity and performance.

Here are some statistics:
52% of Americans use text messaging
72% of all teens text daily
80% of all text users believe they get a faster response when texting than from emailing, phone or voicemail
26% say that they have opted in on receiving text message marketing information
42% of 18 to 34 year olds say they would choose to receive alerts from businesses they frequent
9.3 billion text messages were sent during the last half of 2008
Over 800 billion text messages were sent during the first half of 2010
Sources:
http://www.qwasi.com/news/tag/text-message-statistics
http://pewresearch.org/pubs/1572/teens-cell-phones-text-messages


Even I am so accustomed to texting that is has become my preferred method of communication with friends, family and a few business acquaintances. I find I get a faster response, takes me less time and most of all, I don't have to carry on a conversation and go through all of the formalities of a proper greeting, ask how you are etc. I simply state my purpose and within a minute, get a response.

I see no problem whatsoever allowing employees to text each other during the workday. This encourages communication, teamwork and is faster and easier than calling each other. It is quickly becoming the preferred method of communication and attempting to stop it will be very difficult if not impossible. You may even want to consider a method to text customers regarding any change in status of their scheduled service or installation visit. For example a service technician may want to text his next customer letting them know he is completing one job and will be arriving shortly. I would recommend however, that you script this for them and give them the words to use. Some phones use auto-complete and I have encountered some embarrasing situations when you hit the wrong keys and pushed send to only find that when I wanted to send "Hey, want to meet at the state fair later today" Went out as "Hey, want to beat the stale fart laker today?" So try to reduce the margin of error by using predetermined messages.

So what about some rules for the workplace, how do we handle the employee who is constantly texting? What is recommended as a policy? First, I suggest you provide phones that do have texting capabilities and tell them to leave their own phones or devices at home.
Here are a few suggestions:1. Your policy should include that UNDER NO CIRCUMSTANCES is texting permitted while driving on behalf of the employer or in an employer-owned or reimbursed vehicle. 2. Here is an example of a PERSONAL COMMUNICATION DEVICES POLICY: The use of privately-owned personal communication devices during working hours may present a hazard or distraction to the user and/or other employees. Consequently, privately-owned personal communication devices may only be used during non-working time. This includes, but is not limited to, cell phone calls, texting, checking emails, etc.
Failure to comply or continued abuse of this policy will result in disciplinary action up to and including termination.

Handling the Poor Performer

So, for the new year you've decided to finally take some action on the poor performer you've been dealing with.

First, here are some statistics you need to know about.

• 93% of employees say that working with a low performer has decreased their productivity. •87% of employees say that working with a low performer has made them want to change jobs.
--Leadership IQ, June 2006

33% of management and 43% of non-management employees think their companies are not doing enough to deal with poor performers.
--Sirota Survey Intelligence, July 2006
Below is a 10-point list of how to handle poor performing employees. For more detailed information, sign up for one of the upcoming "Beyond The Basics" workshops listed below.

1. Determine if performance is poor
a. Do not use hearsay or a “gut feeling”
b. Be specific, stick to the facts
• Measurable
• Observable
• Quantifiable
c. Have specific examples ready
• Compare to average or history
• Have an example of poor performance situation
d. Measurement methods
• Revenue
• Customer comments
• Sales
• Observation
• Customer visits per day/week
• Professionalism
• Cleanliness & truck organization
• Organizational skills
• Paperwork
• Following procedures or policies
• On time or tardiness
• Abuse of sick or personal days
• Peer review (team player)
• Personal growth
e. Measurement
• Identify specific areas that require improvement that made the performance problem obvious to you
• Avoid spending time on other issues that are not specific to him or her or relevant to the reason you are meeting - For example if you mention being late several times as a main issue, when it really isn’t, the employee may point out that someone else is late more than they are.

2. Review performance with the individual
a. This must be done as soon as poor performance is obvious
b. Don’t wait forever to “build a case”
c. Explain the intention is to help and improve
d. The review is to determine the cause of the poor performance and determine an action plan
e. Ask questions
f. Document everything and provide copies
g. Possible questions for the performance review - Avoid asking questions that can be answered with a yes or no answer. For example say:
• Please explain how what you do on your job can influence your performance measurement. What part of your job do you believe that you are not performing well at?
• Is there anything that can be changed to improve this?
• Do you believe that you are fully qualified for the job or do you believe some training would help?
• Are there any personal issues that are distracting you from your work? Do you want to discuss them?
• Do you like what you are doing? Why or why not?
• What changes would have to take place to improve this situation? (this would include any recommendations they may have for them personally and for the work environment)
• How would you rate your performance if you were me?



3. Determine why performance is poor
a. The employee has no idea what is expected
• Explain the measurement system
• Review their job description
• Ask them to explain their tasks and your expectations
• Review any points of misunderstanding
• If this may be the only issue, set up a meeting for four weeks and review what has happened
b. Lack of training or knowledge
• Find a source of information to get them trained (you, another employee or an outside source)
• They must be able to contribute their time to improve their career
• Set up a training & development plan for this person
• Set up a follow up meeting if this is the issue, preferably four weeks or less
c. A non-work related problem is distracting them
• You must be careful in this situation
• Avoid personal questions
• Limit your opinions to work topics only
• Don’t try to solve personal issues or problems
• Allow time for them to handle their situation, show concern and plan a date to re-meet and see if they have resolved it
d. Employee is not suited for the job
• Review the value of this person and see if they may be suited better in another position in your operation
• If not, they will need to be terminated
e. They just perform poorly in everything and maybe don’t really care
• This is the only other reason left after other explanations are exhausted
• Termination

4. Determine the action plan
a. Could be determined during the initial review or shortly thereafter with a follow-up meeting
b. Set specific goals
• Measurable
• Quantifiable
• Set Dates

5. Determine an agreed upon timeline of events
a. Set specific dates for feed back
b. Set dates for review
c. Explain long term

6. If performance meets desired standards
a. Immediately reward the performance with positive feedback
• Performance improvement needs to continue long term
• Follow-up steps must be laid out and explained
• List all rewards and potential outcomes

7. Set ramifications for failure
a. The employee must know what will happen should he or she fail to improve
• Short term & long term
• Performance improvement needs to continue long term
• Steps must be laid out and explained
• List all ramifications
• Time off with no pay
• Penalties
• Termination

8. Follow-Up
a. Give regular feedback
b. Don’t wait for the formal meeting to discuss performance changes
c. As soon as improvement is noticed give regular feedback
d. If no improvement is noted, give regular feedback
e. The scheduled follow-up meeting
• Should simply be a meeting discussing what everyone already knows
• As any other review, regular feedback on performance is important
• Do what you said you were going to do
f. Determine next steps

9. Don’t be afraid to modify recommendations
a. The employee may have other issues that need attention
b. You may have resolved one issue and another surfaced

10. Repeat steps as necessary
a. Make sure the employee knows that performance improvement must be sustained
b. The employee must also know that continued improvement is required as part of his or her job
c. Once again, document everything and communicate often

In Conclusion:
• It’s a team effort & YOU are the coach
• Try to keep emotions out of your business decision
• You have to stick to your decisions and be firm and not wishy-washy
• Hire right next time - If you start with something good, your odds of success are better
• DOCUMENT EVERYTHING!


Copyright - Training Source Inc. 2011
You may copy and distribute this document only with written permission from Frank Besednjak

Pricing & Customers

There are customers for everyone. You pick your customers. Some customers are focused only on spending the least possible and have no concern for quality or professionalism. There are plenty of companies out there willing to do shoddy work for almost nothing. Don't compete with them. Price yourself high enough to lose all of these people. These are the same people who complain about everything anyway.



Consider Flat Rate, or Up Front Pricing. There are several good programs out there. I've asked the following question from people who had switched to flat rate pricing for the last 15 years. "Do you make more money and are customers more satisfied?" 100% have answered yes. What does that say? Email me for some recommendations.


The most successful contractors companies in North America, are also the most expensive. What does that tell you?

If you are reluctant to raise prices, ask yourself why you don't think you are worth it?

So many times I've had contractors tell me that they feel like they are ripping people off by raising prices as I suggest. I ask you this . . . Is it because you do crappy work and are unprofessional and don't feel you are worth it? Otherwise you would have no problem charging a fee for great service, wonderful customer experiences, clean and professional service people, new trucks, a great workplace, fantastic benefits, excellent truck stock and the best team of people in your town.

. . . Or do you prefer to just be the guy who can only offer low prices as your best attribute?

Want next year to be the best ever? Raise your price. Need help in getting started? Come to one of my "Beyond the Basics" workshops listed in the schedule below.

I also offer onsite consulting and private classes if you would like me to speak to your employees or just sit and work with you.

*WARNING* I may make you realize that you need to make some drastic changes in your business and you may not like what you hear from me. I won't waste your time or mine. . . But I will tell you the truth, and you will improve.

Where Have I been?

you are probably wondering why I haven't posted a blog in months. Well, I forgot and lost my sign in information and couldn't get on here to post anything. Brilliant, Huh?

Well here is some usefull stuff . . .

I've recently read some on-line comments from contractors regarding the issue of employees complaining about fees that they have to charge customers. . . Here is what I have to say about that . . .

First . . . if you need to show your folks what things cost, here is a great tool for you to use. You may want to print these directions. (you must have MS Excel for it to work)

1.Go to my website www.frankpresents.com, click on Tools & Tips.
2.Click on "Hourly Rate Calculator"
3.You may want to save it, remember where you saved it.
4.Add up all of your monthly overhead costs, rent, utilities, office staff, management, benefits costs of office and management, advertising, charity, phone, office equipment, office supplies, etc. etc. Divide it by the number of fulltime technicians and installers and put that number in line number 42, column B.
5.Starting at the top, in column B, begin entering the per technician installer dollar amounts as indicated from column A.
6.Do not enter anything in the red column
7.On number 38, enter the average billed hours per year per technician. Typically this will be in the range of 1350 to 1550 per tech per year. (there are 2080 potential billable hours per year)
8.On line 46 enter what net profit you would like to make per hour.
9.The amount on line 48 indicates what you need to charge per hour.
10.Save this info, you may now create an Excel sheet for each person that works for you by entering their individual pay and billed hours into the program.
Keep in mind that the "Hourly Rate Calculator" program does not take into consideration overtime, parts & product sales or trip charges. Should you have any questions or comments, please email me at frankpresents@gmail.com