AUGUST 2014
SPOTLIGHT www.dakotasupplygroup.com
Tom's Current
Drawing The (Bottom) line On Pricing If you’ve read “Tom’s Current” before, you know that I’m a fan of consultant Michael Stone. He’s been around the block a few times and always has a practical, procontractor take on issues. Recently, his blog featured a question from a contractor who was being pressured to accept a cost-plus arrangement on a job rather than his original fixed-price quote. Michael’s advice was very black and white: don’t do it. Now this isn’t going to be an article about the complex pros (very few) and cons (too many to list) of cost-plus bidding. Go to Michael’s web site at markupandprofit.com if you want to read more about that. Instead, I’m going to do my best to address the bigger picture behind issues like this: developers/general contractors/customers who simply want you to work cheaper. Here’s a sentence you’ve probably heard ten thousand times: “If only you weren’t so expensive.” Some contractors – especially new ones – fall prey to this siren song. “If I lower my price, I’m going to be so busy that I’ll make that money back in sheer volume,” they say to me. But let me tell you, I’ve been doing this a really long time, and they never do.
Instead, a weird thing happens. Rather than having fewer jobs that they make money on, they get a ton of jobs that they lose money on. You don’t need a Harvard business degree to see where this is going. If you’re busy but all the ink is red, then you can be out of business pretty fast. So what can you do? The first step is understanding that when a customer sees you as too expensive, the problem almost always lies with the customer, not with you. You don’t need to change your pricing, you need to change your customer. Most of the time that means helping them appreciate the value in what you do and the things you sell. Once in a while, it means literally changing customers – trading one who doesn’t get your pricing for another who does. Here’s some good news: enlightening prospective customers on the value of your work might be easier than you think. How much do they know about what it is you do? Do they know that you guarantee your work? Do they know about your policy regarding deadlines? Have they spoken to any of your references or current customers? With a little work improving your communication, you can go from being expensive to being invaluable. Don’t be too hasty to lower your price. Instead, work with your customers to build understanding, elevate standards and even raise expectations. We can help with everything from sales support to marketing materials to online business tools. Together, we’ll make it clear that you’re worth every penny you charge.
POP QUIZ Joe C.
1. Who is the only person to have played in the Little League World Series, the College Baseball World Series, and the Major League Baseball World Series?
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2. True or false: The 1972 Dolphins not only went undefeated in the regular season and won the Super Bowl, they also went undefeated in the preseason.
Kalispell with a nice trout.
3. What outdoor hobby is the focal point of the 1992 movie A River Runs Through It? 4. In North and South Carolina, only one meat is considered worthy of the word "barbecue." What is it? ANSWERS: 1. Ed Vosberg, who played for the Florida Marlins in the 1997 Major League World Series. 2. False. They went 3-3. 3. Fly fishing. 4. Pork.
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Youth Movement
MARKETING TOOL KIT
Construction sites are no place for children, yet kids are inherently fascinated by the processes involved with building things. This innate curiosity is at the core of DSG’s Kids Club. For young people with family in the trade industries, it is a wonderful way of introducing these important careers to those who may want to join them someday. By encouraging the kids in your life to join our Kids Club, you are connecting them to the job you do and offering them a fun, free way of getting involved themselves. DSG Kids Club members receive a membership card and a T-shirt. They also get a birthday gift each year that they are part of the club. Best of all, members get the chance to participate in several contests throughout the year. These games involve printing out an activity sheet from the web site and sending it into Kids Club HQ, where our team sends a prize to every participant. Not only is everyone a winner, but every activity provides kid-level insight into the trade industries via puzzles, word finds, coloring pages and more. After all, they may be young now, but members will one day be high school seniors, and, due to the nation’s ongoing struggle to find good tradespeople, we want them to take a good hard look at joining the trades.
Sign a kid up today and support the future of the trade industries! Children between the ages of five and twelve can join the DSG Kids Club. To learn more, go to www.dsgkidsclub.com.
AUGUST 2014 | SPOTLIGHT
Introducing Panasonic WhisperGreen Select.™ One
Divisions of DS G
Customizable Vent Fan To Overcome Endless Indoor Air Quality Challenges !
Multi-Speed
Condensation Sensor
NEW
PRODUCT!
May not be in stock yet at all locatio ns but is available for order.
NiteGlow™ LED Night Light
Motion Sensor
MODEL Mincron# FV-11-15VKL1.........................161532 FV-11-15VK1...........................161530 FV-05-11VKL1.........................161531 FV-05-11VK1...........................161529
By utilizing innovative Pick-A-Flow and Plug N’ Play technologies, Panasonic’s new WhisperGreen Select ventilation fans let you create the perfect all-in-one custom fan for nearly any situation. Easy to customize, simple to install, one energy-efficient fan surpasses them all! • Ingenious new Pick-A-Flow (50-80-110 CFM) technology gives you the ability to select your required air flow with just the flip of a switch. • Four unique Plug ’N Play modules let you customize the fan by choosing Multi-Speed Operation, Motion Sensor, Condensation Sensor and Automatic LED Night Light. • With Multi-Speed, you can select the proper CFM settings to satisfy ASHRAE 62.2 continuous ventilation requirements. • New Flex-Z Fast™ bracket system provides quick and easy installation.
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• Can be used to comply with LEED for Homes, CalGreen and ENERGY STAR® for Homes 3.0.
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Instead of wrestling with dozens of fan combinations, improve your efficiency with WhisperGreen Select – one easy solution to endless IAQ situations.
Finally, Changes In The Field Are No Big Deal! Easily Change The Polarity And Gender Of Fiber Optic Connectors On Site With PanMPO™ Connectors. The PanMPO™ Connector from Panduit is the only MPO fiber optic connector available that can change polarity and gender in a matter of seconds, making your 10G to 40G Ethernet migration quick, easy and cost-effective without replacing your fiber infrastructure! •
Easily convert between male and female gender, and between key-up and key-down polarity, for a standards-compliant 10G or 40G Ethernet installation
• Connector changes are made in the field, as needed
• Always have the right cable assembly on hand • Available on trunks, harnesses, interconnects and reference cords • Stock one type of cable instead of six!
Improve your operational efficiency, save time, and save money with PanMPO™ Connectors from Panduit!
A Rigid Joint In 1/10th The Time? Only With The Figure 740 GRINNELL Rapid Installation Pivot-Bolt (GRIP) Rigid Coupling. Everyone wants to save on installation time, and the Figure 740 GRINNELL Rapid Installation Pivot-Bolt (GRIP) Rigid Coupling makes it happen. This incredibly advanced coupling provides a rigid joint in one-tenth the time of traditional joining methods and in half the time of standard grooved couplings! Capable of pressures up to 750 psi (51,7 bar), the Figure 740 GRIP Coupling saves installation time in three important ways:
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• The gasket is specially designed for an easy, push-on installation
• Nuts do not require un-torquing to remove the gasket (unlike those used in standard rigid couplings)
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• Only one bolt on the coupling requires tightening
The Job site
Re-Recruiting Makes Real Sense In a recent article by Dr. John Sullivan on the recruiting community web site ere.net, he tells us about the concept of “re-recruiting.” According to Sullivan, this basically means proactively approaching your best employees every few years or so in order to reengage them with their job. While the process may include a change in compensation, re-recruiting is much more than an employee review. It’s more of a “redesign” of their job, doing whatever it takes to ensure that your best employees love coming to work for you instead of finding things they love in a job someplace else. If you’ve identified someone as one of your best employees, recruiters have as well. These might be professional recruiters, but also business acquaintances, friends or even customers who say things like “If you start your own company, I’d hire you.” Great employees get these “offers” all the time – and it’s naive to think that such recruitment would not influence their thinking, no matter how loyal they are. Re-recruitment is simply a way of telling these sought-after employees that you think enough of them to make them a new offer of your own. Here are a few of Sullivan’s top reasons to re-recruit. First, it keeps good employees from falling into a rut. Research shows that employees can get bored with doing the same thing in as little as 18 months. Give them something new to look forward to! Additionally, it adds excitement to internal offers. Re-recruitment tops a normal “review” because it includes an offer of actual change, something that can re-energize
an employee relationship. Finally, being first with an offer is key. By offering them a great “new job” before someone else does, you’ve shown that the employee is your top priority. What are the nuts and bolts of re-recruitment? Sullivan includes these steps: Develop a recruiting tool kit. Whoever handles HR in your company should consider the options that might appeal to good employees (e.g., extra flexibility, the ability to choose their own projects, access to new technology) and determine how to actually implement them. In addition, you may want to ask for ideas from employees themselves. Create personalized retention plans. Work with managers to identify what Sullivan calls “frustraters” that might cause an employee to leave. Counteracting those things that make a good employee dislike their job is often an economical way of giving them something of great value. Document the process, get started, then refine it as you go. Don’t wait or you may miss your chance to re-recuit. After you complete the process with one employee, note what worked and what did not. Make adjustments for your next target and put everything in writing so the process is easy to repeat. If this sounds like a lot of extra work, you may be looking at it the wrong way. Successful employers know that it always takes fewer resources to keep a great employee than to find a new one. Make re-recruitment part of your company, and your team can be great for a long time to come. Source: http://www.ere.net/2013/10/21/winning-the-war-to-keepyour-employees-requires-re-recruiting-your-top-talent/
AUGUST 2014 | SPOTLIGHT
PRESORTED STD US POSTAGE
MDM Supply Now Open In Billings, Montana DSG’s newest MDM Supply branch is now open at 1839 King Avenue West in Billings, Montana. Boasting 23,000 square feet of space, this location features plumbing and HVAC/R products as well as hydronic heating and cooling supplies. You can reach this branch by calling (406) 656-2082 or (844) 753-9120.
PAID Detroit Lakes, MN Permit No. 14
Divisions of DS G Box 13573 • Grand Forks, ND 58208-3573
MDM SUPPLY
The Surge-Trap® PluggablE SPD Uses Mersen’s Patented TPMOV® Technology To Simplify Installations And Retrofits This DIN-rail-style, pluggable SPD is a no-fuse, fail-safe surge suppressor that’s UL 1449 Third Edition approved. • DIN-rail mountable with a small footprint, making installations or retrofits quick and easy! • Remote indicator option keeps you on top of critical control circuits! • High short-circuit current rating and a thermally protected MOV mean no additional overcurrent protection devices are needed! • Easy-to-replace modules ensure that future service is less of a headache for everyone involved.
Outstanding technology backed by a two-year warranty: the Surge-Trap® Pluggable SPD is a game changer for professionals just like you. AUGUST 2014 | SPOTLIGHT