CCN Toolbox - Spring/Summer 2023

CCN’s Celebrate! There’s no replacing an in-person event to help us learn and recharge

Forget about A.I. for a moment. I’d like to revel in H.I. — Human Interaction. Despite our ability to find success working remotely, there is nothing like a room full of contractors interacting face to face. And if this past spring’s conference, themed Celebrate, was any indication, you all appreciate it too. About 275 people — one of the largest conference groups we’ve seen in a while — met up April 27-30 in Arlington, Texas, and celebrate we did.

The Warm Up

We kicked off the event with a pre-conference one-day training and workshop on Key Performance Indicators run by John Martindale. Using research CCN gleaned last year from a dozen sales managers across the U.S., we put together a KPI spreadsheet that defined all KPIs for the sales funnel so that companies could benchmark sales metrics and have something to strive for.

When we started our research, we were a little uncertain. After all, one metric should be easy to compare with another. But we quickly realized that even what we believed were the simplest of metrics were defined differently by different people. For just one example, take the close rate, basically, how many sales do you close? Well, out of 12 people, we got about nine different definitions. Some people included leads that canceled, and some didn’t. Some included leads that didn’t qualify to be leads.

FROM THE PRESIDENT

We realized we had something and decided to take the lead on it. We defined terms for the industry and benchmarked based on those definitions. At the workshop, we introduced the concepts, gave everybody the definitions and a spreadsheet that they could use. But now we’re going to take it a step further and convert that spreadsheet into a proprietary application.

Everyone who attended the one-day workshop learned how to define sales metrics and then get the information out of their accounting software and their CRMs, plug it into our spreadsheet and really start to monitor where they are compared to others in the industry. Now they can truly see what best in class means. We got tremendous feedback. That’s the power of human interaction.

More than Fun

Then the conference itself began with a keynote by Tony Brigmon, formerly “the ambassador of fun” for Southwest Airlines, who used humor and creativity to share insights on how to make the workplace fun. It was a wonderful way to start things off.

Over the next two days, there were more than 20 presentations, including a marketing session run by CCN trainer Charlie Gindele. He spoke about how so many companies have shifted to digital marketing, pay per click, SEO and have given up on other types of marketing and advertising. But with the oversaturated digital marketplace, unless you incorporate other marketing methods, you may see your lead flows start to decline. I could see the recognition of this reality in attendees’

eyes. They understood they’ve got to return to basics, which seems to bring us back to the continuing importance of human interaction.

The big evening highlight was the presentation of the Wizard Awards (see page 10).

And we didn’t lack for the other crucial part of any conference: networking. The venue was perfect for this kind of human interaction. In fact, one informal discussion that really hit home was about our new sales training and sales process where we still use the-5Ps but encourage a two-step/one call effort.

The shift will require some change by people who’ve relied on the two-call process; for example, you need people in the office who can set up the appointment correctly, and you also must have all the stakeholders in their home during the call. But ultimately, the method is more efficient because sales will get to see more prospects. In addition, CCN stats have shown that many companies doing the two-call close show a huge drop-off between the first call and the actual presentation. They’re losing a lot of business or potential business.

Overall, were we successful? Heck, yeah. Nearly 150 people have already registered for the next one, which will be held Sept. 28 - Oct. 1 at Live! Casino and Hotel in Baltimore, Md. The agenda is TBD, but the theme is Elevate. See you there.

Advocating from the Top Down The National Roofing Contractors Association’s Roofing Day brings small business concerns to Capitol Hill

On April 18th and 19th, more than 220 contractors, manufacturers, consultants, and association professionals from 33 states and the District of Columbia met with House members in more than 170 congressional offices. An annual event, Roofing Day is part of the National Roofing Contractors Association’s advocacy arm.

This year, the focus was on support for the Main Street Tax Certainty Act; funding for the Department of Energy’s Building Technologies Office; and workforce shortage solutions:

Support the Main Street Tax Certainty Act: As part of the Tax Cuts and Jobs Act of 2017, many owners of sole proprietorships, partnerships, trusts, and S corporations may deduct up to 20% of their qualified business income. The deduction is set to expire in 2025. NRCA is advocating to keep the tax cuts permanent.

Support for Funding for the Department of Energy’s Building Technology Office: BTO develops and accelerates adoption of cost-effective technology and techniques related to high-performance and energy efficient buildings. “This issue speaks to our manufacturing members, particularly those that partner with this office and develop these technologies to drive energy savings and efficiencies for consumers,” says NRCA’s director of federal affairs, Deborah Mazol. “We feel positive that even during this fiscally constrained budget environment, there’s a lot of support for this office.”

Support Solutions to Workforce

Shortages: Immigration reform and career and technical education are long-standing priorities for NRCA. Mazol says there is bipartisan support for the Perkins and Technical

Education State Grants and the Workforce Innovation and Opportunity Act. “But with a fiscally constrained environment, we have to keep pushing and make sure those in Congress know the value of these programs.”

Perkins and Technical Education State Grants are given to states based on a formula. According to a NRCA position paper, “The imbalance of federal funding between types of education is quite alarming. CTE grants are funded at less than 1% of what is sent to colleges and universities. Especially in a time of fiscal constraint, we need to invest our tax dollars wisely.”

Reform of the 2014 Workforce Innovation and Opportunity Act, which was designed to align the needs of job seekers and employers. NRCA wants reforms that include relief from burdensome paperwork for small businesses, increased awareness of the program within communities, recognition of the value of competency-based training and certification programs and provisions for better functioning workforce boards that meet in-demand workforce development needs.

NRCA’s advisory committee on Roofing Day D.C. prepared members for their day on the Hill with background information, position papers, and training on how to speak with Congressional members. The roofing industry is an essential $100 billion sector with nearly 1 million employees. Mazol says NRCA got positive feedback and believes the event was successful for all parties involved. “We have a consensus of what affects the industry so we can speak with one voice. And our issues are generally non-controversial. We have a good story to tell as an industry.”

Photo: National Roofing Day participants meeting with Congressman Lou Correa (3rd from left) of California’s 46th Congressional District. Participants from left to right: Charles Antis, CEO, and Narciso Alarcon, senior field operations supervisor, Antis Roofing & Waterproofing LLC, Irvine, CA; Diana Petersen, director of administration, Red Pointe Roofing, Orange, CA; Bryan Alarcon, field technician, Antis Roofing, Washington, DC; Eddie Marquez, Union Roofing Contractors Association of Southern California; Duane Musser, vice president, government relations, NRCA, Washington, DC.

Immigration Bills Continue to Affect Construction Industry

On May 10, Florida Governor Ron DeSantis signed into law a reform bill that will require private employers with 25 or more employees to use the federal E-verify system to confirm a worker’s immigration status. It also expands penalties for employers who fail to comply, including the possible suspension and revocation of employer licenses and the imposition of specific penalties on employers that knowingly employ illegal aliens. The law goes into effect July 1.

Florida is not alone in its efforts. Also in May, the House voted 219-213 to pass H.R.2-Secure the Border Act, which calls for restarting the border wall construction, restricting asylum and other measures. It is not likely to pass, given Democratic opposition and a veto threat from President Biden.

But just the discussion itself has had a chilling effect. In the weeks prior to Florida’s reform bill passage, CBS Miami reported that many construction industry workers were leaving for fear of deportation.

At a time when affordable housing and labor shortage issues are in the news almost daily, immigration is top of mind for building contractors.

Immigrants Willing Workers

Rene Ayala, director of Yowell’s Roofing in Tampa, believes the Florida ruling will “exacerbate already difficult labor challenges.” Ayala employs between 15 and 18 people so will not be affected by the ruling but says he knows “of other roofers who have faced empty job sites. That’s a real problem in Florida when out of nowhere a rain shower can start up and ruin a home.”

In San Francisco, Carlos Rodriguez, CEO of Mr. Roofing, a family-owned business, says he’s not experiencing “that same sort of rigor around immigration,” but still faces the same labor shortage issues.

Ayala and Rodriguez are both from immigrant families themselves and understand the difficulties U.S. newcomers face. Both adhere to the law when it comes to hiring practices. Ayala says he has had success working with local non-profits that help legal immigrants get established in the U.S. “I’m finding highly skilled and or educated immigrants who have nothing and just need the opportunity to build something for themselves.”

Rodriguez has a four-month backlog of work and is finding it hard to hire and train people in his company’s production department. Current immigration policies curtailing immigrant numbers have decreased his hiring pool. In addition, our educational system is doing a great job of encouraging kids to go to college, but not a good job of vocational training,” he says. “We need more people to enter the trades. The people willing to work in roofing and solar and those open to doing that have been immigrants. They have ambition, good hearts, and a strong work ethic.”

What also hurts their businesses they say are companies that skirt the law by hiring non-legal workers. “I have competitors who hire non-legal people and pay them less than what skilled labor should be paid. They charge less for the same roof I’m doing,” Ayala says. “The Florida law could stop this from happening.”

Rodriguez believes companies should treat people with dignity, train them and pay them a living wage.

Workers not born in U.S. make up about 30% of the construction industry nationally; in California and Texas, it’s closer to 40%.

–STACEY FREED

“Unfortunately,” he says, “a lot of companies take advantage of folks willing to work for a low wage and under whatever conditions.”

The Associated General Contractors of America, which represents about 27,000 firms, has no objection to the Florida law and the use of E-verify, says spokesperson Brian Turmail. “We don’t need a market where we make it hard for people to find lawful workers and easy to hire and exploit unlawful workers. There needs to be an easier way for employers to check the status of workers, but only the federal government can craft legislative reform to allow people to come into the U.S. legally.”

And the federal government is basically shirking its duties, he says. “They are putting the onus on employers to rely on documentation to determine the legal status of employees. Our members are in the business of building things and not in the business of verifying whether a driver’s license or worker card is a fraud.”

The Difference Between Management and Leadership

—GARY COHEN

Management and leadership are two distinct yet interconnected concepts that play vital roles in organizational governance. While they share certain similarities, they differ in terms of focus, approach, and outcomes.

Management primarily deals with the efficient utilization of resources to achieve specific goals and objectives. It involves activities such as planning, organizing, coordinating, and controlling tasks and processes. Managers are responsible for ensuring that resources are allocated effectively, timelines are met, and tasks are performed efficiently. They establish structures, create processes, and enforce policies to maintain order and stability within the organization. Managers are often concerned with monitoring performance, analyzing data, and making informed decisions based on available information. Their main objective is to maximize productivity, reduce costs, and achieve organizational targets.

Better Way?

Current immigration policies just continue to make things difficult for employers. Ayala began the process of hiring an engineer from Venezuela. What should have taken a year to 18 months, he says, “has taken almost four years, and we have proven that there is no one here with this engineer’s skill set. What are the avenues for people like me to get the employees that I need?”

He’d like to see government support for a fast procedure for people to get a work visa if they’ve got an employer ready to hire them.

AGC hopes for “some kind of path to legal status, not necessarily citizenship, for those who are already in the country,” Turmail says. “No one benefits — not the owner of construction firms nor the workers —if you have a large pool of workers not legally allowed to work in this country.” n

Leadership, on the other hand, is centered around inspiring and influencing individuals and teams to collectively work towards a common vision or goal. Leaders set a clear direction, create a compelling vision, and communicate it effectively to motivate and engage others. They inspire people to go beyond their limits, foster innovation, and encourage creativity. Leaders empower individuals by delegating authority and promoting autonomy, allowing them to take ownership of their work and contribute to the organization’s success. They build strong relationships, encourage collaboration, and create a positive organizational culture that promotes growth and development.

While management focuses on the day-to-day operations and the efficient execution of tasks, leadership is more concerned with driving change, inspiring others, and creating a sense of purpose.

Management ensures that the organization functions smoothly, while leadership ensures that it moves forward, adapts to new challenges, and achieves long-term success. Effective managers are skilled in planning, organizing, and problem-solving, while effective leaders possess qualities such as vision, communication, empathy, and the ability to inspire and motivate others. In summary, management is about operational efficiency, resource allocation, and maintaining stability, while leadership is about envisioning the future, inspiring others, and creating a culture of innovation. Both management and leadership are essential for effective organizational governance and successful organizations strike a balance between the two, utilizing the strengths of both management and leadership to achieve sustainable success. n

Current immigration policies curtailing immigrant numbers have decreased the hiring pool in many places

Books to Grow On

Charlie Gindele wants everyone in the building industry to find their success

Like many people in the construction industry, Charlie Gindele got his start trailing his father on building sites. Nearly 60 years later, Gindele, now retired and acting as a coach and mentor for CCN members, has written two books — the memoir Build it to Last and Lessons Learned, My Journey from Contractor to Businessman — that he hopes will “help contractors speed their learning curve and avoid making some of the same mistakes” he did.

Getting Started

“When you’re younger,” Gindele says, “you’re trying to figure out what’s important to you and where you want to go in life. You try different things, but there’s a point in your life when you start to say, ‘I found my niche. I found what I was cut out to do.’ It feels good.” That happened for Gindele in the early 2000s. But way before he got there, he went to college then started his own roofing, siding, window, and door business in the Philadelphia area, where he had grown up. Within three years, he had gotten married and had a child “and became very conscious of being more secure,” he says. He saw his college friends moving up the corporate ladder and he thought that was where he needed to be.

He took a job with the manufacturer Alcoa Building Products, a “’real’ job with benefits,” he says, and did a lot of traveling away from home. In 1983, the company restructured and sent him to Western Ohio. In 1984, he tired of that, resigned and started a residential roofing business in Orange County, California, a place he’d gotten to know during his traveling years. “I was 30 years old and didn’t know anyone there, but I thought the market was right for what I wanted to do,” he says.

Determined to Succeed

Somehow, his product and installation knowledge got him through — to a point. Within about five years he was one of the largest Alcoa aluminum roofing dealers in the U.S. Then he started a window replacement division. It took a decade before he started “making a living,” he says. “I didn’t run my business by the numbers. I did it by cash flow, how much was in the checkbook. Not with a lot of planning and foresight. I was doing a good job for customers and employees but maybe not for myself. I didn’t focus on the profitability part of the business. You could say I confused activity with productivity.”

This last lesson is the step Gindele wants readers to learn from so that they can move into profitability more quickly and with more confidence. Lessons Learned, in particular, offers explanations and hands-on advice about profit and loss; owner’s equity; budgeting; getting the right people on the bus and the wrong people off the bus; improving the customer experience; growing a business and more.

In 1995, after about a decade in business, Gindele attended a two-day CCN session. “I was doing about $5 million a year and had 25 employees. I felt like I was doing okay but I realized I didn’t know what I didn’t know. I was humbled.” That’s when things began to really turn around. He committed himself to making changes. For the next 15 years he worked hard creating action steps, strategies, budgets, written goals and objectives. He became more than a business owner. He became a leader. Ultimately, in 2019, his company did $48 million in business and he sold the company to Andersen Corp., where he stayed on as general manager for three years before he retired at the end of 2021. Once he had time on his hands, Gindele put it to good use. As he says, the books offer lessons about “things I wish someone had told me when I was 25. As they say, ‘The teacher appears when the student is ready.’ This is my way of giving back to the industry.”

...the books offer lessons about “things I wish someone had told me when I was 25”

–STACEY FREED

Sales Mastery draws 32 to Baltimore in March for in-person training sessions

–STACEY FREED

Evan Perez had only been at Contract Exteriors for six months when owner Randy Hann decided to send him to CCN’s Sales Mastery program. “He was the most inquisitive about trying to improve his skill set,” says Hann of Perez who had been in sales construction for a decade prior to getting hired at the Myrtle Beach, S.C., windows, siding, and decking company.

CCN’s Sales Mastery had been offered online during the Covid 19 pandemic, but this past March the class returned to being held in person. “It was important to me to send someone now that the class is back to being face to face,” Hann says. “I knew that from our team, Evan would get the most out of it.”

By the book

When Contract Exteriors opened 13 years ago it didn’t have a real sales process admits Hann. But since joining CCN 10 years ago, they began using CCN’s structure and developed what Hann calls “a two-step approach. It’s important that we use CCN’s Measure Call questions throughout the appointment. CCN has about 29 questions our sales reps should be asking.” Hann has noticed that sometimes a salesperson will just memorize everything, “but then they can overthink the process,” he says. “Other times they think they can just wing it with questions for prospects. But asking those questions is critical to building trust for when you return for the presentation. You need to set the groundwork for the presentation. Without the questions you’re taking a gamble on your foundations.”

Hann believes that following the “5P Presentation” — problem, product, people, process, price — helps his sales people build confidence. “If they bounce around and don’t follow the 5Ps, they aren’t able to build toward a resolution.”

Despite having a decade of experience as well as in-house sales training courses with other companies, Perez says “there’s always more I can learn.” His enthusiasm was one of the main reasons Hann decided to send him to the two-day class, which was held in Baltimore. When he first began at CE, Perez had attended a Zoom training but was glad the March Sales Mastery sessions had returned to an in-person format. “There are no other distractions; you’re 100% invested in it,” he says. He learned scripted scenarios (aka “word tracks”) and did a lot of role playing, which he felt was the best part of the training. “I also really valued the feedback from others,” he says and appreciated seeing how other companies use the CCN training “to their advantage. If you’re not following the method, you can be missing out. I could tell [during class] who does it every day and who doesn’t. I saw that people who are using it are having success.”

Put to use

Since returning to the office, Perez has been logging in and practicing. “I listen to the audio and try to do more repetition and training on my own. The word tracks help prepare you for when a homeowner asks a question or offers a response to one of your questions. You have the information at your fingertips. The training is designed to help you keep the conversation alive instead of taking the first no and leaving.”

Hann had sent only Perez to the March training he says because he wanted to get feedback on the new class before committing other sales people. But since Perez’s return, says Hann, he knows he’ll be sending others. “I haven’t heard a sales rep that excited about CCN training in a long time.” n

Should you give a vendor a second chance?

—LYNETTE ROGERS

After many years as a contractor, I’ve had my fair share of bad experiences with vendors. And even if you have a bad experience, it can be a difficult decision to end the relationship. But doing so, I’ve discovered, can be good for both you and your vendor.

For a long time, I worked with a local siding vendor. They distributed mostly vinyl siding but also delivered James Hardie products to us, as well. For some reason, they began to have a lot of turn over in sales reps. My phone calls went unanswered or they’d get answered too late. They would deliver broken materials. It was frustrating. I spoke with the sales rep and explained my issues. Why would I want to do business with them? Still, things didn’t improve. I finally had to stop working with them. But then, something surprising happened; the vendor made some serious changes.

They sought me out, admitted their faults, and asked for another chance. They told me they implemented changes based on the needs of contractors like me. After all, each of us works to improve our own business. Here they were admitting they were wrong; why couldn’t they improve their business? I decided to give them another chance.

Big Changes

The vendor was purchased by another company, and they implemented a new system to streamline communication and delivery. They even got rid of the unresponsive sales reps and replaced them with more efficient people. They’ve streamlined their systems, making it easier to place orders, track deliveries, and get quotes quickly. Their new system helps me set up templates for my orders, which I can easily modify. I can even put a PO to it, and it will automatically send it for order, and they call me as soon as they receive it. They have better buying power and pricing and access to the products I need. I am no longer waiting for days or weeks to get my materials.

As for the issue of broken materials? It turns out the original warehouse and delivery people only worked with vinyl and didn’t know how to properly handle fiber cement products, which was why I was receiving broken materials. They are now a James Hardie dealer and have trained their teams on how to handle the material.

I value good vendor relationships. I need my vendors to be responsive, provide quality products, and have excellent communication. When one vendor fails, it affects my business and reputation, which is why I’m careful in choosing the vendors I work with. I want to work with vendors who are willing to listen, understand my needs, and make changes when necessary. It shows me that the vendor values their customers and is willing to improve their services. A second chance can also be an opportunity to establish a better relationship and build trust. We contractors need vendors who can provide quality products, reliable services, and excellent communication. A good vendor relationship is a two-way street, and it requires both parties to make an effort to maintain it. I’m glad I gave my vendor a second chance. n

Lynette Rogers owns Homescapes of New England, which provides the upper Northeast with siding, window, and deck construction services. The company is an Elite Preferred James Hardie, Andersen Windows, and Trex Pro Platinum contractor. Along with being a CCN member, HNE is a member of Guild Quality.

I want to work with vendors who are willing to listen, understand my needs, and make changes when necessary.

For nearly 25 years, the Renfros’ family-owned company has focused on residential and commercial roofing, skylights, and gutters throughout Western Oregon. They have about 15 employees, including field and in-house staff. In March, the Renfros attended a CCN Owners’ Roundtable. Described as an open mic for CCN member owners, Roundtables are held monthly via Zoom. Members determine the topic and get real-time feedback from other business owners and CCN’s expert facilitators.

What are the benefits of Owners’ Roundtable?

We’ve been members for five years and try to go to a Roundtable each month. You get feedback and some justification of your thoughts about running a business. There are a lot of others we can talk with who are doing the same things or who are farther along, and we can get pointers from them. There’s no reason to struggle through if someone else can give you a little bit of guidance. It’s not just the two of us figuring out the details of running a construction business.

What did you talk about in the March 29 meeting?

Lead generation and how to use prior customers to increase lead flow. Right now, it seems like leads are down, especially after covid. Various owners pitched out different ideas. And your big takeaway?

A roofer from GM Roth mentioned how you can send mailers directly to neighbors in the vicinity of a job site, maybe 150 to 200 mailers, to help generate leads. The mailer says something like, We’re in your neighborhood doing a job, and we have found a lot of homes the same age have the same problems and we can come out and take a look.”

The GM Roth owner suggested a company called TheBestPostcards.com. You give them the job address, and they have a mailing list and will send postcards directly. For 150 pieces it cost $97.50 for the card and the mailing.

We’ve done direct mail before to a general list. But we like that this is more targeted, and we plan to implement it for every job. Plus, the company makes it easy with a text template, and we had Charlie Gindele [CCN coach/trainer] look it over and help guide us through the process. Since we just sent out the mailers we haven’t got any responses yet, but others who’d done it said they got good results. Charlie told us that 3,000 postcards should give us 1 to 3 leads (10,000 should get you 3 to 5 leads). We pair that with our average sales ticket to get our closing ratio. So far by Mid-May, we’ve gotten a few leads, but it’s a slower process. As Charlie says, it’s all about consistency, and re-mailing to the same customer list.

In general, what do you gain from your membership in CCN?

We immerse ourselves in CCN, gather data and put to use everything we can that will help in our business and our daily practice. We always get a little knowledge out of each Roundtable.

Last year we were focused on moving our business in a different direction. Production and sales were up. We went up 72% in growth last year and that all stems from the CCN processes we’ve put in place — everything from sales training to Owners Roundtable to the marketing mastery program. It’s really about watching our numbers every day and having the production team put goals on the board. All of these have helped turn the business. n

Wizard Awards 2023 Winners Announced

Always a conference highlight, this year’s Wizard Awards were no exception. “It was really exciting,” says Scott Siegal, of this year’s awards ceremony. “Everyone was hooting and hollering and screaming. It was great to experience.”

The Wizard Awards were initiated by CCN founder Richard Kaller who encouraged salespeople to “become the wizard” by creating solutions for prospects’ home improvement needs. Kaller believed recognition is a key tool in employee retention programs for a reason: people need more than constructive feedback and positive affirmation.

This year at the Arlington, Texas, event, CCN recognized 13 individuals and two companies.

Here we highlight three:

Company of the Year

Bo Lacey Construction

Mansfield, Ohio

Bo Lacey Construction was awarded Company of the Year due to their outstanding skills and expertise in exterior home improvement, their commitment to customer service and community involvement, their excellent company culture and commitment to career development, their effective marketing and sales strategies, and their overall training and development programs

Most Improved Company

G.M. Roth Design Remodeling Nashua, New Hampshire

After 35 years in business, a new generation is running this company. Their numbers were so good year over year that it was just mind-blowing. It is just really exciting, and we wanted to recognize them for that.

Salesperson of the Year

Larry Helgeson Pacific Exteriors

His ability to close deals and generate revenue is a true testament to his sales prowess; in 2022 alone, he generated over $8.8 million in sales for the company.

Bo Lacey Construction

G.M. Roth Design Remodeling

Larry Helgeson

Corporate Headquarters

6476 Sligo Mill Road

Takoma Park, MD 20912

301.891.0999

800.396.1510

866.250.3270 fax

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Toolbox is a publication of the Certified Contractors Network. Toolbox is a member benefit. Non-members may subscribe for $75 annually.

Art Direction/Design

Stacy Claywell

Writer/Editor

Stacey Freed

Contributors

Gary Cohen, Scott Siegal

Photography

Gary Keiltz

For information on submissions contact Stacy Claywell at stacy@contractors.net