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The Econom s n a dfferentplace than t was a few earsago. We are rapdl approachnga 90% emploment rate n theUS. Thngs have shfted, t s tmeto shft our busness to meettoda’s econom.
Sponsored b:
Changing the way CustomInstallers do business
49
 
GUTSy
Survival
 
TipS
 
n 49 Mnutes
B Steve Haes
 
1. Metcs
• Review your P/L weekly to see where your 
mone s gong.
• Know your percentages.• Ask for help to manage the numbers to abalance that makes sense
2. lbo
• Know labor standards and manage your install
crew to meet or beat the standards.
• Manage each technician individually• Train, manage or terminate.
3. Hng
• Don’t Interview, but TEST for aptitude.• If they say they can install, have them prove it• Same with designing, accounting, etc…
4. Fng
• Biggest mistake reported by business owners isthat they kept the wrong people too long• Think about that one person that you knowyou could re tomorrow and you wouldn’t
mss them
5. Mket Oppotntes
• Stuck in residential?• House of worship, light commercial, casinos,amusement parks….
6. Expnd Opetons
• Ever thought about hanging holidaydecorations?• UPS Shipping point• Network provider for your building• E-Bay selling station
7. rethnk Hos
• Move install staff to 4, 10 hour days.• Better able to get the work completed
b stang on the jobs longer each da
8. Mnge Empoyee Beho
• Get specic about what is expected
9. Cete eene genetng oppotntes
• Give everyone in your company an incentive
to ncrease sales
10. Compenston
• Move folks to incentive based pay systems
 
• Tie Incentives to people’s personal interests
11. Spse incentes
• Catch people doing the right thing• Make them unpredictable
12. Bonses
• Tie them directly to protability
13. led Geneton
• Offer incentives to everyone to nd customers• Pay either a nders fee or a percentage of
the equpment sold
• Pay in store credit if cash is tight• Approach related professionals for leads
14. refes
• Put a formal process in place for your company• Make it attractive and available to anyone,
not just past customers
• Get it in the hands of every electrician you know
15. Csh Fow
• Liquidate stale inventory• Discount the video to acquire a steady stream
of sales (sell the rest at good margn)
• Manage deposits as liabilities• Use mechanics liens when necessary• Make deposits daily• Pay bills at the last minute• Offer early pay discounts to customers• Negotiate pre-pay discounts with vendors• If you don’t need it, don’t buy it!• Inventory weekly, control loss• Charge for design time (even if it’s only a
few dollars)
16. Expenses
• Evaluate EVERYTHING• Aggressively change your habits• Leases and mortgages• Express shipment charges• Pre-pay discounts (don’t let them escape)• Ofce supplies
17. Refnancing
• Interest rates have not been lower • Banks are nervous• Bundle debt where possible at lowest rates
18. lese renegottng
• Commercial landlords are most nervous about
losng tenants n ths econom
• Negotiate up front to secure your future andcontinue to pay the rent….• They want to see you succeed!
19. Bng
• Bill for all of your time (biggest lost opportunity
n our ndustr)
• Schedule payments so that all phasesare pre-paid• Invoice and collect in timely fashion
20. Coectons
• Mechanics liens are in place to allow you
control as a servce provder 
• Create a form letter for collections and
send t earl
• Give people specic payment due dates
 
21. Smt Dscontng
• Discount those things that people price shopon Google (televisions, DVD’s)
22. Pe-py dsconts
• Offer cash discounts for pre-payments• Manage your pre-pay discounts tightly
23. rebtes
• Rebates are a cool way to use someone else’smoney for a while and then give it back later…• Avoid buying this way…• If you can gure out a way to sell this way,go at it!
24. vehce Mngement
• Check your leases, if buy-outs are less costly,
then bu them out
• Watch the gas card charges – make sure they arereal and for work only• Lease (or donate the use of) idle vehicles tocharitable organizations, take the tax break 
25. Pchsng
• Remember that cash if king….for everyone.• If you can pay cash, then negotiate big
dscounts wth our vendors
• Buy from suppliers that offer great margins• Buy only what you need
26. Bk Pchses
• ‘C’ stock items – wire ties, work boxes, screws,bolts…you are going to need them so buy big
and negotate hard.
• $30 per week still adds up to $1500 yr…put itin your pocket
27. undestnd the cost of conenence
• Avoid the retail purchases each day, put theextra 30-50% in your pocket
28. Dsconts
• Ask EVERYBODY for one
29. Sece s. instton
• You make more money when new equipment
s beng nstalled than f ou are just servcngold sstems
30. Pe-Kttng
• Build the system entirely in your shop• Burn it in and x it before you get to the
customer’s house
• Better image• Better prots
31. rck use
• Put every system in a rack • If you are not in this category, check it out
32. use veco
• When dressing a rack use Velcro straps
(at least ntall)
• If you really want to nish with zip ties, then
complete the job wth them and then remove
the Velcro straps
33. Stndd Systems
• Sell the same system over and over again
34. Bg Mgn Mnfctes
• There is a new type of manufacturer – 90’s and 2000’s saw manufacturingmoved off-shore– Most manufacturers kept that extra prot for themselves (dealers cost and MSRP stayed
the same)
– Examine the business models and prot marginsof some of the new breed….Things are changing
35. Csh Pe-Py Dsconts
• I get lots of questions on this one…– Manufacturers need cash too– Many dealers in our industry don’t pay their 
blls on tme
– If you have the cash, negotiate a severe
dscount wth our vendors
– If you don’t have the cash, examine how you
are bllng our customers and GET the cash
36. recycng
• Copper prices• Scrap metal prices• Not as protable as it used to be• But will likely pay for tools over the course
of a ear 
37. Chnge Odes
• Create the form• Manage them aggressively• DON’T do any extra work without one signedand pre-paid if possible
38. inoce chnges dy
• If you can’t get it prepaid, then send out an
nvoce at the end of the da to have them
pay it now….don’t wait until the job iscomplete or you will likely not collect on
all of the changes
39.
 
4 – 10 ho dys
• Briey discussed earlier – Typical installer day is 25-30% traveland set-up– Moving to 4-10’s reduces that to 10-20% and
the rest of the tme s spent nstallng stuff
– On average, crews gain 2-5 hours extraper person per work week to do theinstallation…. (that’s only 25 minutes to anhour per day gained for a 5 day work week)– Think about it…
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