Jim Hinshaw

So here we are in another new year. I hope you have your seat belt on, figuratively speaking, because we are in for a wild ride. Maybe 2016 will be similar to other new years, but there is a chance it will be turbulent. Maybe tougher to do business. We have a lot of distractions, starting with the political circus, the roller coaster economy (the stock market is moving faster than a Tesla), and ending with the available labor pool. I found a few lessons about these in my travels.

The labor issue

Janah Morehart has a company in Phoenix called Morehart Air Conditioning and Heating. Her and Josh have been in business for a while and have seen how hard it is to get and keep great employees. A few years ago, she was in an office supply house getting some printing done when she met a young man who provided exceptional customer service. She asked him a few questions and ended up hiring him to come to work in her office on various marketing packages. A year later, he was helping in the field, and then moved into service. This year her distributor rolled out a new high efficiency inverter driven compressor system with all the bells and whistles. This same young tech she hired from the office supply store sold 6 of these systems in the first month of introduction with an average sales price of around $16k. WOW!

So if you ask Janah how to find good employees, her response will be quick. They are all around us. They are at your local Starbucks, Kinko’s, Applebee’s and alike, doing what they have been trained to do and performing it to near perfection. They always provide excellent customer service and you can easily notice them. Janah’s general manager used to run the office for a chiropractor. Janah became highly impressed with her management skills and made an offer to work in HR. So keep your eyes open always in the most unexpected places. Be ready to ask an employee that has outstanding customer skills if they are happy with their current job? Josh Morehart says he can get a new guy productive in 6 months, even coming from another industry. The new rule for finding employees is, hire for attitude, train for skill. Find the one in the crowd who serves others and has a great attitude. They can always be taught your business and trade.

Profit in Maintenance

I am still surprised at how many companies still do not do much with Maintenance Agreements. Grow the customer relationship today; it has value for your company. I mentioned this in another article recently, but it bears repeating. Figure out what you want to accomplish on a maintenance program that offers value to your custoemrs, establish the minutes needed for each task, total up the minutes, add in some travel, a spiff, and there you have your one or two year maintenance agreement. Another option is to set it up to debit the customer’s checking account or credit card monthly, and offer it as a continual maintenance program with no end until they cancel. Pay your technicians a better spiff when they sell a program on a monthly basis, maybe with a set amount per month, that they receive commission on until the customer cancels. And don’t cap it because this can be the glue that holds that employee to you. While in that neighborhood, add in additional services to your maintenance agreement for additional revenue. Include changing smoke detector batteries and other plumbing, HVAC, and electrical services that are easy for your plumbers and technicians to do but hard for the customer to do.

It turns out; this year will probably be tougher than last with more on the consumer’s plate. So we have to get creative on how we get new customers. Team up with a local company who is in homes on a regular basis with pest control, pool maintenance, or alarm services, etc. Get them to include your service with each new customer they add. Maybe you can offer a tune-up, an inspection, or something the customer does not pay for. So it adds value to the pest control company as an example. You end up with a name of a customer who trusts you since you came in with a company they are already doing business with. Now offer them a reduced price maintenance agreement or something to show that they are now within the inner circle like a friends and family that receive special pricing.

Also, I recently sat in on a webinar and saw an info chart that showed direct mail is the second best form of advertising (except in 18-34 year olds) to reach new customers. Direct mail followed up with a phone call, still gets effective results. Yes, calling your customers is the best way to make that phone ring, just pick it up and dial. You already have a relationship; you are not selling land in Puerto Rico but a valuable service they need.

Outside the box revenue generation

I just read an article about an Uber car driver named Gavin Escolar, who made $250,000 + last year. A little above the average for that industry. But he also sells jewelry for both men and women. He has a couple of flyers and catalogues in the back seat pockets of his car which is immaculate. He made about $3000 per month from Uber, and the rest of his income came from custom jewelry he made for many of his customers, customers he has in the car for 10-15 minutes at a time. What a great concept. He has new people coming into his show room each day with an income level perfect for his target market. He says that even going door-to-door would not come close to the response he gets from my passengers. He has great reviews from his passengers with an averaging 4.85 out of 5 on Uber Black, the high end Uber service. Uber is fine with him selling his jewelry in this manner and says they want to improve the local economy and his Uber ratings are at the high end of the scale. But he has not forgotten his roots. He used his money last year to buy 3 new cars and hire 6 drivers. He recruits unemployed Filipino immigrants, his homeland, and gives them a helping hand.

He is a great example of doing something different by creating a niche market. This is the example we need to do today, something different. The old ways will not be as effective this year and beyond to generate additional business revenue and profit.

I just finished up a year of traveling for business and have learned several lessons on the road. When I travel by plane, I am TSA Pre-check so I never need to stand in the long line waiting for the x-ray machines. There’s no need to pull my shoes off or take my computer out of the bag. I recently traveled from Phoenix, AZ and when I got to airport I discovered the Pre-Check line was down. In addition, there were about 150 people in line with only three lanes open and a forth is sitting vacant. At the end of this line was a sign that said, “Questions? Tweet TSA, @askTSA.” So I quickly pulled out my phone and sent over a question via twitter that said, “Why do we not have all 4 lines working and why is Pre-Check shut down?”

Before I got through the line I already have an answer from TSA. They came back and said that they try to match the expected load with staff, but missed the fact that the colleges in AZ were out for the holidays that added to the additional traffic. They did say that they were working to get extra help and had a guy walking the line asking people if their flight was leaving in the next 30 min. If so, they would move that person to the front of the line. So they were pro-active in doing what they could to help out.

I went through the line and got my computer out along with my toiletries and proceeded through the scanner. I then put my toiletries back in my bag and walked away without my computer. I realized this tremendous error when my flight landed in Denver and was not feeling good about this turn of events. Once again, I pulled out my phone and tried the TSA twitter account again. This time I tweeted, “Help, left my computer at terminal 2 in Phoenix, what do I do?”

They tweeted back and asked the time I was at the terminal, the date, and which terminal etc. After I replied, they said someone would call me when they located my computer. A lady called the next morning and said she had my computer. I arranged for it to be picked up and everything was all right in the world. I realize the TSA group is not always our favorite friends when we travel but when I needed them most. They were there for me using the latest technology and responding to my needs.

I stayed at a Marriott hotel called the Epicurean, a boutique hotel and gave my rental car to a valet to park. When I went to check out, I gave the attendant my claim check and went back in to settle up my stay at the front desk. The attendant pulled up and parked my car outside and ran out to get another car. When he came back by I asked for my keys but he did not have them. They were in his hand when he locked up my car but left them in another car. So I immediately thought, “My rental car is locked and the keys may be anywhere in the parking lot or possibly on the way to the airport in someone else’s car.” In addition, he cannot remember exactly where he left them. I had a flight home in a couple of hours so I was a little frustrated.

Then enters Genevieve Wojick, the front desk clerk who had helped me check out. She had seen me out front and noticed that I had not left yet and came out to see if everything was OK. She was cool and calm and told me not need to worry, she would handle everything. She said she would arrange for the car to be towed or a second set of keys delivered to get the rental car back. She also would get me a ride to the airport and let the rental car company know what was going on and that the hotel would handle any extra charges and I would not miss my flight home.

As she was calling a cab, the attendant came running back in and said he found my keys! I was so impressed that she had the ability to work past this potentially huge problem and handled it with such a calm manner that provided comfort. She was the “voice of reason” for me during this problem. Marriott does a great job in hiring people to work their hotels and she is a testimony to going the extra mile.

After arriving at the airport, I put my phone down on the scanner to read my boarding pass as I boarded the flight. The United Airlines gate agent said, “Thanks for flying with United Mr. Hinshaw.” I listened in amazement as she called out the people behind me by name as well. That has only happened one time before in my travels and it sure makes an impression.

As I boarded the plane, a tall flight attendant named Sylvia welcomed me aboard. She had a distinctive accent and I asked her where she was from. She responded “Germany.” She saw a young mom coming down the isle with a baby and child seat that was having a hard time. Sylvia said, “Let me help you.” She quickly grabbed the child seat and walked her to her isle. Coming back, she saw an elderly woman about 5 foot tall looking up at the bins wondering how she would get her bag up that high. Sylvia took the bag and hoisted it up for her pleasantly without a problem. That made me feel good about flying United.

So how does this apply to you and your business as a contractor? Do you equip your front line (or actually any employee) to handle a situation when something comes up you didn’t plan on? I am confident that Genevieve’s hotel manager did not have a “what do we do when the keys are lost” drill. I’m quite certain the manager does have a customer service policy that says “Make a decision in the best interest of our customers and we’ll figure it out later!” He assuredly gives them the authority to make things happen, and in my case, it eased my mind completely. What happens when a routine plumbing install doesn’t go as planned? For instance, what happens when someone from your team steps through a ceiling or damages adjacent mechanical equipment? The truly impressive companies today have a system and policy in place to work through those opportunities when they occur, not if they occur. And I said correctly, opportunities not disasters. A real chance to show your customer whether you and your company have honest integrity to take care of them and own your own mistakes. A chance to build complete and total trust if handled respectfully and properly. Good companies actually plan on a problem arising, sort of like a fireman training for a house fire. They train to put out fires with an actual burning building, not just by reading a manual.

What can your team do to make that customer seem special? Make it a goal this year to do more than just what is on the proposal, make the customer feel like you are looking to serve them, not just make a profit. Then your customer will know that you and your company are going to do whatever is necessary to provide the best service and install the best products in their home or building. When you go the extra mile and deliver more than what they expected, most customers become raving life-long fans that tell others about your company. Your customers are your best marketing team if you please them. They tell neighbors, friends, and share it on social media like Facebook.

So sit down with the entire company and ask them how they can make customers feel better by doing business with your company. Don’t have time? You might want to make time because some of your competitors are doing that today. If not, your customer may simply decide to work with your competitor instead in the future. Or you may turn them into life-long partnerships that will make your business grow and keep your customers happy at the same time.

Have you ever had the experience of someone telling you news that just leaves you in a state of shock? Something that makes you wonder, what really matters? Whether it relates to family, life, or even your job or business.

For instance, my wife and I were at dinner a few weeks ago when I received a call. It was from a friend letting me know that a mutual friend of ours had lost their son due to a pulmonary embolism. He was only 30 years old and was simply waiting at their home to have a nice family meal. The mother came into the room and found him on the floor, already passed from this life. We quickly made plans to head south to be with our friends to comfort them in their time of need.

When we arrived, we heard the whole story. Two days earlier their son had called their pastor and asked to have a lunch meeting because he had some questions about life and what happens when we die. Their discussion lasted for a good 90 minutes. Later that week at the eulogy the pastor said he was glad he took the meeting and believed their son got some things straightened out which gave the family some peace, even though he had passed from this life.

At the funeral service at their church, every pew was filled and overflowed. At the reception at their home later on, people had parked 5 blocks away with people lined up outside waiting to get in to share their love for this family. At one point a local restaurant brought over a large amount of food: shrimp, crab, and several desserts. The just left them at the door and said they cared and were thinking of the family.

You may wonder what all of this has to do with you and your livelihood. Perhaps quite a bit more than you know. We all get so busy with our own circumstances but may have no idea what others are going through and how can we show our support and love for someone going through difficulties in their life. This not only relates to friends but to co-workers, employees, boss’s, and customers.

Most of us never forget the people who have comforted us, shared in our sorrows, and encouraged us during difficult times and sometimes, even through tragedy. In most cases, you would esteem this person and care for them as well. Perhaps a boss would have greater respect for that employee, an employee may perform better to honor their manager or boss. Or a customer may become a customer for life and tell everyone they know to use your services and why they should trust you. All because you cared and comforted them during their time of need. We can all testify that we all prefer to by from people we like and people that are like us.

My message is this; be sensitive to your employees, co-workers, and yes, even your customers. We occasionally get a reaction from others that seems over the top. Perhaps an employee will be frustrated, a customer will immediately go off on a rant about how you are taking advantage of them, etc. Realize that it may not even be anything you have done. They may just be feeling the pressure of life and may feel overwhelmed.

So keep your composure and don’t react out of passion, slow down your speech, and discuss the matter. Or calmly clarify your position with compassion if they have misunderstood you. If they have overreacted, in most cases they know and aren’t sure of how to handle their current emotions. Ask them if there is anything they need to share or if they would be willing to allow you to offer any support for them. We do not know what tomorrow brings. If we live like it, we may have a happier boss, hard-working and trusted employees, and even more business with life-long customers who can provide the type of advertising money simply can’t buy.

Warmest Regards,

Jim Hinshaw

by Jim Hinshaw

Recently, I heard a story of a Viet Nam Vet who was at a restaurant having a dinner with his wife when a stranger comes up to him and calls him out by name. He asked the Vet how he was doing. He responded, “Do I know you?”  The stranger says, “Yeah, I packed your chute back in the day.” This supposed stranger was no stranger at all. In fact he was the ground support crew that made sure parachutes opened for the troops while flying missions over Nam. There’s nothing more critical than making sure you parachute opens when jumping out of an airplane. It’s the difference between life and death. This stranger literally kept this other Vet alive by packing his parachute correctly every time. Talk about having a guy’s back; this stranger literally did.

This got me thinking about contractors in our industry and the survival of your business. So who’s got your back to support you or even help save your business? Who can you call on when things don’t go exactly as planned? Many of you in this industry are in business for yourselves and sometimes it can be lonely running the shop by yourself. So whom can you call upon? You can’t talk to your employees if you have any because they have problems of their own and aren’t interested in yours. Friends don’t want to get involved and usually don’t understand your business and industry anyway.

So you need a person you can call upon when you are not sure what to do next and offer support to grow your business or even survive. You need a good chute packer who’s got your back. Do you have such a person in your life that’s a confidant and trusted advisor to help you get through the tough times and market swings this industry brings?

I happened to have married a chute packer, May, who always has my back and I have absolute confidence in that. She not only supports me, but she’s also completely honest in all aspects of our relationship, business and personal. That is what you want from a trusted advisor, the truth at all times. Even when there is bad news to be delivered, you need one who will deliver it and not sugarcoat the opportunity you are facing to simply make you feel good temporarily.

So how can you find such a trusted advisor that can support you with the challenges this business and life throws your way? Perhaps they may be someone you already know. In some cases, a family member may be able to help such as a relative who has been or still is in business and can share thoughts on your plan of action for your business.

In addition, there is no shortage of consultants on the planet; you can hardly swing a cat around by the tail without hitting one. OK, I know that’s sort of a stupid and non-politically correct phrase, but you see where I am going. There are consultants who have been in this industry and have bought and sold companies similar to yours. There are others who have had experience in different industries but have life lessons that apply across many industries and businesses that can help you with the issues you are facing. Ask other business owners whom you respect who they have used and how they have been helped to receive the results they achieved.

You can even interview a consultant and ask about their experience, how they have helped others and what they will do for you. Any consultant should be able to provide references and an action plan for your situation before going on the clock. Just ask.

Another source of trusted advisors are your business relationships, the sales reps calling on you. Many have been involved with contractors who have businesses similar to yours; they may have helped others grow their companies or have learned over time what separates one successful contractor from another. Ask your rep what advice he may have for your business as many have moved from being simply order takers to consultants that will work with you; and without charging additional fees. Many distributors have put together business programs addressing exit strategy, HR concepts, how to work with different generations, Quick Books, and many other concepts. So the next time your rep calls on you, ask him to have a cup of coffee with you at a local coffee shop. Ask for his help with your business or what he sees other successful contractors doing that you may also be able to implement.

A final source of help may be an industry group such as Service Roundtable. With full disclosure, I am a coach and partner in SR; it is the nation’s largest forum for HVAC, Plumbing, and Electrical contractors. It’s only $50 per month and you may interface with companies up to $50 million/year in sales. You can ask the group how they are doing GPS, health care, dispatching, almost anything, and be provided some great resources. It’s a huge bargain! Here is a link to save you $25 off the first month’s membership, from me! http://www.serviceroundtable.com/Hinshaw

Also be aware that none of us know everything about every business and even we can use outside support from time to time. But there is help and advice available all around us. Just do your investigative work and find the person who can fit your needs, budget, and who will defiantly have your back. With your business and livelihood at stake, It can be the difference between survival or going out of business. You need a good chute packer.