Connections - Summer 2015

Fishing DSG Country

Favorite spots to land trophies and spend lazy afternoons.

SUMMER 2015

CONNECTIONS QUESTIONABLE TACTICS

Are you asking the easy questions or the right ones?

WHERE DID THE

TIME GO?

The inescapable importance of billable time.

HISTORY SEEN IN A NEW LIGHT ďƒ PAGE 6

ON THE COVER |

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HISTORY SEEN IN A NEW LIGHT

See how some outside-the-box thinking helped Conrad’s Big “C” Electric and DSG enable a historic hotel to take its lighting into the future.

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QUESTIONABLE TACTICS

Service calls can benefit from a little detective work.

Here’s how to ask the right questions the right way.

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THE INESCAPABLE IMPORTANCE OF BILLABLE TIME

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One topic was talked about more than any other at DSG’s P4 Learning Lab events – billable time. Read why this topic is so important to a contractor’s success.

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FISHING DSG COUNTRY

Check out some of DSG’s favorite fishing spots to land trophy catches and spend lazy afternoons.

20 PROFILES | HEADLINES

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OPPORTUNITIES ARE PILING UP FOR LEDs LEDs are proving to be a valuable asset to electrical contractors in

a way that some may not have considered. See how Ada Electric put LED lighting to work for them on a new sugar beet piling station in Hillsboro, North Dakota.

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CONNECTIONS | SUMMER 2015

24 WWW.DAKOTASUPPLYGROUP.COM

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DSG’s Education Connection Fund received a scholarship application that simply could not be ignored. Read the story about a young man named Mark George from Battle Lake, Minnesota.

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DSG SCHOLARSHIP HELPS MINNESOTA YOUTH OVERCOME FAMILY TRAGEDY

RAB LIGHTING: MORE THAN 68 YEARS OF BRILLIANT IDEAS

RAB Lighting: Setting the pace for lighting advances then and now.

Education

CONNECTION Fund

FIXTURES | Editorial The Question To Everyone’s Answer – Tom Rosendahl.........................................4

The Power Of We At DSG

Education

CONNECTION Fund

The Power Of We At DSG . . . Quotations..........................................................5

Meet The DSG Team

Ryan Tracy – Sales Manager...........................................................................9 Dan Gatzke – Branch Manager, Fargo Waterworks........................................... 23 Stacey Olson – Branch Manager, Dickinson..................................................... 26 Jeff Larson – Branch Manager, Williston......................................................... 33

Job Site The Art Of Employee Retention....................................................................... 28

Grow Your Business Get An Early Start On Succession Planning..................................................... 34

News Wire Broadening Our Connections...........................................................................8 Quick Credits Set Customers Up For Success..................................................... 13 New South Dakota Scholarship Program Addresses The Trades Shortage............... 39

Recommended Reading The Go-Giver............................................................................................... 22 The E-Myth Contractor.................................................................................. 37

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EDITORIAL |

The Question

To Everyone’s Answer

Does anybody remember Choose Your Own Adventure books? Each book allowed you to make choices that led you to different pages in which the story unfolded differently based on your decisions. I thought a similar format might be interesting for this issue’s editorial, so here goes:

Dirk needed a truck. He went to the local dealership determined not to pay too much.

He was suspicious of any “sales tactics” that the dealership might use, and he let them know it.

“Just show me your trucks; I don’t need any help,” he told Chris, the salesperson who met him at the door.

Dirk found a pickup that he loved. It had everything he wanted: It was black. It drove like a dream, and best of all it was cheap. At this stage, Chris, the salesperson, had a decision to make.

Should he: (1) Simply ring up the sale, take the commission

and avoid any possible issues? If this is your

choice, skip to Ending #1.

(2) Ask Dirk some questions to ensure that it is,

indeed, the right truck for him (and risk

annoying him)? If this is your choice, skip

to Ending #2.

Ending #1: Dirk was proud of himself as he drove home in a heavy downpour. In his mind, he had purchased the exact truck he wanted. As he turned into his muddy driveway, his wheels began to spin. “No problem,” he thought as he reached down to lock in the four-wheel drive. He groped around for a few seconds before he realized that he hadn’t checked to make sure the truck was equipped with four-wheel drive. “Why didn’t Chris at the dealership say anything?” he said out loud as he reached for his cell phone. “I’m going to return this truck and tell everybody about this mess!”

Ending #2: “Do you think you may need a truck with four-wheel drive?” asked Chris politely.

Now the situation could continue in one of two different ways. Ending 2a goes like this: Dirk scowled at Chris and reminded him that he didn’t need any of his “hard sell” tactics. “I think this truck will be fine,” he said proudly. But when he got stuck in his muddy driveway, he immediately called Chris. “You were right,” Dirk said to the salesman. “I do need four-wheel drive. Let’s talk about an upgrade.”

Ending 2b has a slightly different feel: “That’s a good question,” Dirk said with a smile. “My driveway turns into a swamp when it rains. I’m glad you brought that up because I had completely forgotten about it.” When he reached his muddy driveway, Dirk simply engaged the four-wheel drive.

“Thank goodness we talked about that feature,” he thought to himself, “or I’d be stuck for sure.”

How many questions do you and your team ask when you are on a service call or writing an estimate? Some people think that asking questions may annoy the customer, but it rarely does.

Instead, it simply allows you to give them better information, which leads to a better decision, whether they buy anything or not. There’s an article in this issue about how contractors can benefit from asking questions.

Check it out, and I think you’ll see that a little curiosity is good for everyone involved.

Tom Rosendahl 4

DSG PRESIDENT

THE POWER OF WE AT DSG |

...

The Power Of We is part of our core purpose statement here at DSG, and it means that we seek to go beyond making simple transactions and instead create Julie Wood meaningful encounters with our partners. It means that every employee owner recognizes our goal to help our customers succeed. Our customers receive consistency, commitment and incredible customer service no matter whom they work with, what the job is or what products they buy. After all, at DSG, customer service is an attitude, not a department.

What is considered a department at DSG is quotations, and our quotations specialists put The Power Of We into each job they work on.

They are responsible for providing pricing estimates to our customers, but if you’ve worked with any of our employee owners in this department, you know that they do much more.

The quotations department works extensively with the products that DSG sells, and they stay on top of the latest trends and styles. As a result, they are well equipped to make product recommendations, many times introducing customers to product solutions that they might not have considered otherwise.

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Quotations “We think outside the box, so our customers don’t have to,” says Julie Wood, quotations and lighting specialist at DSG in Rapid City, South Dakota. “We have the time and resources to look for the right solutions and products. Then we package up all the pricing and details to go with them. If our customers need additional options, recommendations, details, cutsheets … whatever, we’re here for them.”

In addition to pricing and product information, the quotations department often provides information regarding Return on Investment (ROI), payback and – in the case of our electrical quotations specialists – even energy audits. “We’ll survey a prospective job site with our customer to discuss and identify the end users’ needs and wants, as well as take detailed inventory of current lighting systems,” says Wood.

“From there, we can analyze energy usage and expenses, and develop a specialized lighting upgrade proposal that our customer can share with the building owner.”

According to Wood, this teamwork is indicative of The Power Of We. “It’s our job to help our customers achieve success any way we can,” states Wood. “Our philosophy of partnering with our customers to help their own customers is key to The Power Of We.”

SUMMER 2015 | CONNECTIONS

5

HISTORY SEEN

In A New Light The Hotel Alex Johnson in Rapid City, South Dakota, has welcomed travelers (including six U.S. presidents) from around the world for nearly 90 years. Listed on the National Register of Historic Places, the hotel has been restored to its original grandeur using original photographs and plans.

While much effort has been made to revive the hotel’s past, DSG was able to help as the landmark takes its lighting into the future.

Yesterday’s Ballroom, the largest of Hotel Alex Johnson’s ballrooms, is a distinct reflection of the time period in which it was built. Unfortunately, the lighting was reflective of that time as well. While low lighting is often suitable for evening receptions and events, it proves to be a burden for daytime meetings. Liv Hospitality, the group that manages Hotel Alex Johnson, looked to long-time partner Conrad’s Big “C” Electric, owned by Ron Conrad, to help improve the lighting.

Conrad’s Big “C” Electric and Liv Hospitality had been exploring lighting options for the ballroom for more than a year but were coming up empty when it came to finding lighting that was modern but didn’t debase the historic decor. They finally found a solution when Dan Anderson, Conrad’s manager and estimator for the project, teamed up with Lighting Specialist Julie Wood and Account Manager Dic Chiolis from DSG. “We put a design together and brought a sample of the light fixture to the hotel, and they loved it,” says Anderson.

“They wanted a light that would blend in, so we proposed fixtures that give off a light that you barely notice.”

Specifically, DSG recommended McGraw-Edison (owned by Cooper Lighting) Top Tier LEDs. “It’s a fixture that is typically used in exterior applications,” says Wood, “but we’ve found that it’s a great fit for

Hotel Alex Johnson has been a downtown Rapid City landmark since 1928. Built in just one year, it was founded by railroad magnate Alex Johnson.

many interior applications as well, with its dimming and color options. It produces highly uniform and efficient lighting that is visually pleasing.”

“Julie’s expertise as an engineer and Dic’s knowledge of LEDs were very helpful on this project,” adds Anderson. “DSG really pulled through for us in finding the right fixture for this setting.”

When it came to the installation, the age of the building presented some challenges, but none that were beyond the capabilities of Anderson’s crew.

“Anytime you work on a historic building, there are bound to be some interesting setups that can make wiring a little more challenging than normal,” he says, “but it wasn’t anything our guys couldn’t handle.”

The building structure, with its 16-foot-high ceilings, was one reason why LEDs were so important to the project. “Those lights won’t have to be changed out for a long time,” says Anderson. “The owners not only see the value in the energy they’re saving but also in the reduced maintenance expenses.”

Before

The project wrapped up quickly, with installation starting in January 2015 and taking a little more than two weeks. Everyone has been happy with the results so far. So much Dan Anderson, project manager for the so that DSG and Hotel Alex Johnson project, has been in the electrical industry for nearly 25 years.

Conrad’s Big “C” Electric teamed up again in April to install the same lighting in another hotel owned by Liv Hospitality.

“Conrad’s Electric did an outstanding job in their placement and design,” says Lynzie Montague, general manager at the Hotel Alex Johnson. “The new lighting accentuates the historic charm and elegance of Yesterday’s Ballroom perfectly.”

After

Lighting was significantly improved in Yesterday’s Ballroom with just 14 LED fixtures.

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SUMMER 2015 | CONNECTIONS

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NEWS WIRE |

Steve Singer (left) and Doug Kanter (right) are the former owners of Pipeline Supply and two of the newest employee owners of DSG.

Broadening Our Connections DSG starts a new partnership with Pipeline Supply in Minnesota Springtime is the season of growing, and in 2015, DSG is getting in on the act. In March, DSG acquired Pipeline Supply, a successful distributor of plumbing, HVAC, hydronics and well supplies with five Minnesota locations: Grand Rapids, Ham Lake, Monticello, Oakdale and Hopkins – where the company also has a distribution center and an 8,000-square-foot showroom. “This is a win-win for everyone involved,” says Steve Singer, former owner of Pipeline Supply (and new DSG employee owner).

“There are so many new opportunities for our customers, our vendors and our employees by joining forces with DSG; we’re excited for what’s in store for the future.”

For the time being, Pipeline Supply will retain its name, and while it will become a division of DSG, the majority of business operations will function as normal for staff, customers and manufacturers.

This is due, in part, to a compatibility in product selection, but also because of a shared organizationwide commitment to treating both customers and

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CONNECTIONS | SUMMER 2015

manufacturers as partners. “Just like DSG, our business is run on customer service,” says Singer.

“Anyone can give you a price, but if they can’t stand behind it with great service, then it’s not worth anything.”

Pipeline Supply will add new products and brands to DSG’s inventory, as well as more than 100 employee owners to DSG’s team, many of whom have served in the plumbing and HVAC industries for 15 to 20 years. “We’re used to being a part of a family-owned business,” Singer says, “and even though DSG is owned by its employees, it feels like Pipeline Supply has an 8,000-squarefoot kitchen and bath showroom in family just the same.” Hopkins, Minnesota.

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MEET THE DSG TEAM |

AN INTERVIEW WITH RYAN TRACY,

DSG SALES MANAGER AND PLUMBING SEGMENT MANAGER Ryan Tracy has worked for DSG since 1995, serving in both branch manager and segment manager roles, as well as in outside sales, inside sales, quotations, counter and warehouse positions.

Q – You’ve worn many hats at DSG. What are

you looking forward to about being the new

sales manager?

A – I’m excited about the next chapter in my career

and all of the new challenges that go with it. Most

of all, I’m excited to be working together with

my fellow employee owners to take DSG and our

customers to the next level of sales.

Q – Who was the first person you told about your

new position?

A – My wife, of course.

Q – Throughout your career, is there someone who

has given you great advice?

A – I have a group of friends that I consider my own

“board of directors,” who I call on with certain

topics that I feel they are good at. The advice I

like the best is: “There is no elevator to success;

you have to take the stairs.”

Q – You’ve been the plumbing segment manager

for a number of years. How has that prepared

you for being the sales manager?

A – It has taught me to have a big-picture view of the

company and has allowed me to get to know all of our managers and salespeople better.

Q – You’ll be busy with your new role. What’s

something that you’re looking forward to when

you have some free time?

A – Fishing. For those who know me, that probably

doesn’t come as a surprise.

Q – What’s one thing that your customers and

fellow employee owners would be surprised

to know about you?

A – I don’t watch a lot of TV – sports, and that’s about

it. I have never seen an episode of “Seinfeld” or

“The Amazing Race” or “Dancing With the Stars,”

or any of the shows people always comment on.

Q – You’re indeed quite the fisherman. What’s the

biggest thing you’ve ever caught?

A – Locally, a 50-inch northern pike.

Q – What’s your favorite place to grab a bite

to eat in Aberdeen?

A – I like to get a protein shake at Quality Choices

Shake Shop. For supper, I go to Minervas.

Questionable Tactics Service Calls Benefit From A Little Detective Work “Good job!” the homeowner tells the electrician as he is leaving the service call. She shakes the service tech’s hand and says, “This is exactly what I wanted.”

It’s the ultimate customer service story, right?

The customer is satisfied. The contractor is happy.

The job is finished and everyone can move on.

But wait – there’s something to be learned from that homeowner’s last comment that might make us look differently at the whole job. The customer says that the result was exactly what she wanted.

The issue, you see, is that she may only have gotten what she wanted because she didn’t know what else she could have gotten.

Here’s a different way of explaining it: Let’s say you’re an explorer who has been on safari since 1998. You finally get back to civilization, and you go straight to the cell phone store to replace your 15-year-old flip phone that got cracked when a

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CONNECTIONS | SUMMER 2015

rhino sat on it. (Who knows why? Rhinos are just like that.) You don’t know any better, so you ask for the same phone. The kid behind the counter looks at you funny, then digs up an old relic in the back, blows the dust off it and sells it to you. You’re happy as you leave the store. You got exactly what you wanted.

Then you sit down for your first cheeseburger in almost two decades, and you notice that everybody else has a phone that takes pictures, plays videos and surfs the Internet. You want to surf the Internet! You want to watch hilarious cat videos! In just a few seconds you go from being satisfied to be being disgruntled. “That kid at the phone store ripped me off because he didn’t ask if I wanted a different phone!” you mumble as you clumsily try to send a text with your numeric keypad. “I’m never going back there again.”

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Solving Riddles To give customers what they really want, you must ask questions. This truth extends past service techs into everything from bids to new construction. If the specs ask for a thermostat, the only way to find out what the customer really wants is to ask, “What kind of thermostat?” Oh, you could just assume that they mean the cheapest or most basic thermostat, but perhaps they don’t know anything about the new innovations in smart thermostats that let them check and adjust the temperature in their house from their cabin at the lake – which they would love to do (and would gladly pay extra for).

As it is in most of life, it comes down to the easy way and the right way – and the fact that they are very seldom the same thing. We all get busy, and our brains default to the simple answer. Ellen Rohr, a small-business consultant who helps DSG with its Power Tools Success Workshops, sees it all the time as she helps contractors across the country.

“It’s easy during a service call for the tech to forget about asking questions,” she says, “but it’s critical to the process. If you’re installing a product, ask how that product will be used. If it’s a sink or a shower, have users been happy with it? If it’s a furnace, are people comfortable in the house or do they complain about certain areas being too warm or too cold?”

The answers to any of those queries could lead to additional sales, but more importantly, they will contribute to improved customer satisfaction. This is the difference between customers who call you back and customers who call their friends.

Continued on page 12 

Small-business expert Ellen Rohr is used to answering questions at DSG’s Power Tools Success Workshops.

What To Ask Looking for a few questions to get everyone started when discussing projects with customers? Here are a few (but don’t stop with them – add your own!).

• How is the ____ being used?

• Are users happy with how the ___ is working?

• Why is it being replaced?

• Do you know about some of the benefits of the latest _____?

• Are there any features you’ve heard about that you wished you could take advantage of?

Continued from page 11

Answers For Remembering Questions “For technicians, I suggest that they use a mnemonic device to remember to ask questions on every job,” Rohr explains. “Just as you learned to use the word ‘HOMES’ to remember the Great Lakes in elementary school (Huron, Ontario, Michigan, Erie, Superior), you can create your own acronym with a word like ‘SERVE’ to ensure that your team doesn’t forget any part of your service process. For example, the ‘S’ might stand for ‘Start Right,’ a step that includes putting booties over the shoes and shaking hands. ‘E’ might stand for ‘Extra Questions,’ a step that includes inquiries designed to learn more about the customer’s needs.”

Simple word devices are not enough, though.

According to Rohr, management needs to work hard to make questions part of the company culture. In Rohr’s experience, this means a hands-on approach.

“For supervisors, there are two steps to helping your team get the hang of asking questions, whether they are part of a service call or the new construction process: role playing and ride-alongs.

These are the proven ways to coach and improve

the performance of your team. First, simply pretend that you are the customer and have the tech or salesperson go over their mnemonic device as if they were on a call. Second, go with your team to some appointments to make sure that they are remembering the steps of the process.”

To emphasize Rohr’s point, these steps are about coaching, not micromanaging. Imagine a basketball coach who never gets to see his team play in a game. “It’s not about busting them, it’s about breaking bad habits and helping them to succeed!” explains Rohr. “It’s about working it into your company’s culture.”

Looking for some ideas of mnemonic devices to guide the service or bidding process? Want some questions to get the process started? Check out the sidebars included with this story, then set up a time to get together with your team. Make questions a part of every customer encounter, and the benefits will quickly become clear. Once you start asking questions, you’ll discover that you have a lot more answers.

The Phonics Of Mnemonics Here are a few examples of mnemonic devices that might help you and your team to make questions part of every conversation:

1: SERVE

2: ASK

3: MORE

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(S) Start Right (E) Extra Questions (R) Recommendations (V) Value Added (E) End Strong

CONNECTIONS | SUMMER 2015

(A) Ask About Usage (S) Suggest Improvements (K) Keep Your Promises

(M) Make Inquiries (O) Offer Solutions (R) Respect Decisions (E) Encourage Feedback

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NEWS WIRE |

Quick Credits Set Customers Up For Success DSG’s Customer Service Guarantee promises to credit its customers’ accounts for returned stock merchandise in just two business days or less, keeping cash flow moving, jobs progressing and partnerships thriving.

DSG has always recognized the impact that return credits can have on its customers’ businesses, and in the last two years it has made large strides to ensure that this impact is a positive one. “Before we officially promised our customers the Two Business Day Stock Credit, we were making an earnest effort to be timely, but we just needed a little more focus in order to remain consistent,” says Mike Place, DSG’s professional development specialist. “Now our return process is more dependable and effective. It allows our customers to feel more in control and provides them more flexibility. There’s less uncertainty when it comes to their cash flow.”

Since the Customer Service Guarantee was launched in 2013, DSG has been monitoring stock credits using its internal management system, and supervisors are regularly reviewing reports that flag credits that need to be addressed.

In 2014, DSG processed nearly 50,000 stock credits, and only 46 took longer than two business days to process. That’s a success percentage of more than 99.9 percent.

“We’re certainly living up to our promise,” says Place, “and we have to. We owe it to our customers to put them in the best position possible to succeed. A customer could bring in a return one day and then come to find out that they’ve been awarded a big job the next. That credit could turn out to be a critical part of kicking off that project successfully.”

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100%

Order Accuracy

You’ll get exactly what you ordered and the peace of mind that comes with it.

2 Business Day Stock Credit

Any time you return a stock item, we’ll issue your credit within two business days, helping your cash flow to stay healthy.

200

Items Top Always In Stock If the product you need is on our Top 200 List (which includes many of our most popular electrical, plumbing and HVAC/R products), you can count on us to have it ready for you when you need it.

These are the three promises that DSG makes to its customers as part of its Customer Service Guarantee. If at any time we fail to meet expectations on any part of this guarantee, we will issue a $25 certificate to redeem on a future purchase.

SUMMER 2015 | CONNECTIONS

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DSG Scholarship All 13 George children pose together at Christmas 2014. Mark George is standing in the back row behind his oldest brother.

Helps Minnesota Youth Overcome Family Tragedy In April 2014, DSG’s Education Connection Fund received a scholarship application that simply could not be ignored. It was from a young man named Mark George.

Mark George shares a moment alone with his father, Tom George.

Mark was raised by his parents, Martha and Tom, on a farm near Battle Lake, Minnesota, along with eight brothers and sisters. In 2010, the Georges adopted four more children, bringing their family total to 15. Mark is the middle child, with six older siblings and six younger ones. “Having a big family is pretty fun,” says Mark. “I’ve never had my own room, but I’ve always had my own baseball team,” he jokes.

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CONNECTIONS | SUMMER 2015

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During his childhood, Mark looked up to his father, Tom George – an all-around handyman.

Mark often worked with his father to make home improvements and build on to their home to serve the needs of their growing family. From his father, he learned the ins and outs of the electrical and plumbing trades, as well as carpentry, masonry and drafting.

Tom and Mark also spent much of their free time tending to their family garden with the hopes of one day adding a greenhouse that incorporated both hydroponics and aquaponics. “Our dream was to have an efficient and self-sustaining greenhouse garden,” says Mark. “That way we could eat healthier and become more self-sufficient, something that’s important for a family of our size.”

Tom George always hoped that one of his children would follow in his footsteps. He was overjoyed when Mark was accepted to Minnesota State Community and Technical College for plumbing in the fall of 2013.

Sadly, that joy was not to last. Just two weeks later Tom unexpectedly passed away from an aneurysm.

The George family was devastated. Thankfully, they had the support of each other, as well as many friends and family surrounding them to help them get through that difficult time.

Unfortunately, Tom’s passing put the George family in a financial bind. The family cut back on expenses as much as they could, and Mark looked for ways to help fund his education. He found out about the opportunity with the DSG Education Connection Fund and submitted his application. Impressed by his ambition and mindful of his situation, the fund awarded Mark a $2,000 scholarship. “This meant so much to me,” says Mark.

“I didn’t think I would get it, so I was thrilled when I

did. It’s helped me pay for my books, tuition and the tools I’m required to have for school. It was such a financial boost during such a hard time.”

Mark is currently putting his scholarship to good use at MSCTC’s campus in Moorhead, Minnesota.

He plans to pursue several areas of education and training there, including plumbing, electrical construction and HVAC. He is currently working as an intern for Thoreson Plumbing. “I want a career that will allow me to use the skills I learned while working to finish our family home,” says Mark.

“When I’m done with school, I hope that I can have a career doing what I’ve grown to love – building homes for rural families to enjoy.”

Furthermore, Mark plans to explore the area of horticulture.

He hopes to combine this knowledge with his electrical construction skills to equip homes with self-sustaining greenhouse gardens. “I want to help families Fund prosper by reclaiming their selfsufficiency,” says Mark. “I not only want to help my own family grow their own food, I want to help others do the same.”

Whether he’s studying, working or enjoying a little free time, Mark thinks about his dad a lot.

“Being a part of the trade industries makes me feel closer to him,” says Mark. “He was a big role model for me. I miss his guidance and wish he could be here with me to share my experience Fund as I go to school.”

Mark plans on spending the next several years in school and then hopes to find a job back home in rural Minnesota. Due to the growing shortage of tradespeople, his future there looks bright indeed.

If you know someone who could benefit from a scholarship toward an education in the trades, tell them to apply online at www.findingmytrade.com.

Education

CONNECTION

Education

CONNECTION

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SUMMER 2015 | CONNECTIONS

15

THE INESCAPABLE IMPORTANCE

OF BILLABLE TIME

There were a lot of topics covered at DSG’s 2015 P4 Learning Lab events, but one was clearly talked about more than any of the others. In fact, questions regarding this subject filled up the post-event survey, giving more proof that it is on the mind of every contractor/small-business owner, no matter how big or small. What is this pressing issue? Time.

Specifically, billable time.

For any company that keeps track of time – whether they bill by the hour or bid based on hours – time is truly the cornerstone of their entire business model. How long does it take to do something? How much are the workers paid? Subsequently, how much does the company need to charge to make money on that job? The math is fairly simple, even if you add in a lot of variables: you must bring in more per hour than you pay out per hour or you will lose money.

If this was all there was to it, profit would be a lot easier to calculate – especially for contractors.

A plumber would work eight hours a day and the bookkeeper would simply apply each of those hours to the job on which he was working. He would be 100 percent billable.

Unfortunately for bookkeepers and managers everywhere, this is hopelessly unrealistic. The plumber takes breaks. The plumber drives to and from jobs. The plumber picks up parts. The plumber attends staff meetings. The plumber gets a call from his wife. The plumber uses the restroom. The plumber is a human being (as we all are), and that means that realistically, his or her day is a combination of billable and non-billable time.

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CONNECTIONS | SUMMER 2015

Which is where things get complicated.

“When contractors look closely at the time they bill, nearly all of them bill fewer hours than they thought they did,” says Bill Kinnard of Grandy & Associates, the small-business experts that DSG uses to facilitate P4 events. “It’s almost always a surprise when they see the actual numbers.”

Small-business expert Bill Kinnard advises contractors and business owners at DSG’s P4 Learning Lab.

TIME KEEPS ON SLIPPING Over the years, Kinnard has worked closely with hundreds of contractors across the United States, helping them to track down “where all their time goes.” It is an exercise in accuracy and perception.

“Here’s a problem that many contractors run into: Their service tech shows up at a job at five minutes to nine and leaves five minutes after ten and marks down that he worked on the job for an hour,” says Kinnard. “That doesn’t seem like a big deal unless you add up all of those 10-minute chunks of time over the course of a year. In 12 months you’d be giving away more than 40 hours for just one tech.”

Non-billable time is part of doing business, but the key to success is to balance it out with as much billable time as possible. According to Kinnard, a realistic goal is for a good installer to be around 70 percent billable, while a good target for a service

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tech is about 60 percent.

These goals take into account everything from training time to sick days, and they are important for two reasons. First, contractors cannot calculate their rates based on workers who are 100 percent billable. People are not machines, and the numbers simply don’t work out. As a result, contractors may need to raise prices to be profitable.

Second, managers should do what they can to encourage workers to be as billable as possible. Sometimes this is

about being more efficient with time, but often it is simply a need for accuracy when reporting time. In the example above, for instance, the tech doesn’t need to work any harder to bill 40 more hours per year, he just needs to track his time more accurately.

Does it really make a difference? According to Kinnard, it really does. “We worked with a contractor in a large Midwestern city who was not watching his billable time closely. He was struggling to get by, and when we broke it down together, he discovered that he had paid out more than $200,000 in a year in wages that he could not bill for.

He was flabbergasted! But the good news is that he started paying attention to billable time and turned things around.

He shared the challenge with his team, and they worked together. Once everyone was on board with why they were

tracking time so closely, it all turned around. Today they are growing and profitable.”

So is non-billable time always bad? “Not at all!” says Kinnard.

“I’m a big proponent of vacation days, sick days, etc., and those are all non-billable. I’m also a big advocate of team meetings for the purpose of training and organization.”

In other words, non-billable time – in the right proportions – is part of any successful business.

It becomes a problem only when team members fail to recognize its significance.

According to Kinnard, that same lack of understanding can lead to similar problems with un-billed parts. There can be a perception by workers that the company can afford to “throw stuff in,” Kinnard explains. “If a tech doesn’t bother to write down $100 in miscellaneous parts, it doesn’t seem like a big deal to them. ‘After all,’ they say, ‘I just installed a $5,000 furnace.’

Continued on page 18 

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SUMMER 2015 | CONNECTIONS

17

Continued from page 17

But what they forget is that profit margins may be very tight – as low as 3 percent for net profits.

As a result, the company needs to sell another $3,333 just to cover that $100! They need to land another job just to cover the profit lost on the first one!”

Good communication is always the key to overcoming these issues. Get the team together and share the numbers. Set goals. Offer incentives. Once everyone is on the same page when it comes to the importance of billable time

(and billable parts), accountability becomes a goal rather than a challenge.

Need some help tracking billable time at your company? DSG’s Customer Portal might be just what you need. It is an online service that is free to DSG customers, and it includes a handy online time sheet for techs and other team members.

DSG also offers customers access to Budget Shaper, another free online tool that can help you to better utilize the billable hours your team puts in to establish a profitable hourly rate.

“P4 Was Truly Eye-opening!”

ONE SESSION OF DSG’S P4 LEARNING LAB CHANGED EVERYTHING FOR HVAC CONTRACTOR GOSCH INC. Many contractors get to enjoy the “benefits” of being a business owner – long hours, extra duties and infrequent paychecks – and many times they’re left asking themselves: Do I own my business or does my business own me? DSG’s P4 Learning Lab aims to change that. These two-day training sessions empower business owners with strategies that can improve their billable hours, profitability, cash flow and more.

David and Daniell Gosch attended a 2015 P4 Learning Lab session in Fargo, North Dakota, and were blown away by their experience. “P4 was truly eye-opening,” says Daniell Gosch. “We learned so much about our business, and we were given tools that we could actually put to use. If we want to explore buying a new vehicle or hiring an employee, we simply go to the computer,

and within minutes, we know how those decisions will affect our business and what we need to do to bring those ideas to life.”

As a result of their experience at P4, the Goschs have implemented a number of changes in their business, including increasing their hourly rate. “P4 gave us the confidence to charge what we believed we were worth rather than simply following suit with what everyone else was charging,” says David Gosch. “We were able to determine a rate that was right for us and the kind of business we wanted to be, now and in the next 10 years.”

P4 CAN CHANGE YOUR BUSINESS FOR THE BETTER. ASK YOUR DSG REPRESENTATIVE ABOUT IT TODAY OR GO TO WWW.DAKOTASUPPLYGROUP.COM/P4 TO LEARN MORE!

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CONNECTIONS | SUMMER 2015

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Fishing

DSG Country

Here are some of our favorite spots to land trophies and spend lazy afternoons. Almost every DSG location has its own resident fishing expert, so don’t be afraid to ask for their advice.

Flathead Lake

This blue jewel covers nearly 200 square miles and reaches a depth of 370 feet, providing one of Montana’s best habitats for lake trout.

Trout

Blackfoot River

Upper Missouri

Home to monster paddlefish, these ancient leviathans can live 60 years or more and reach weights of almost 200 pounds.

Paddlefish

This legendary river was popularized by the movie A River Runs Through It.

Cutthroat Trout (fly fishing)

Madison River

Different sections feature different scenery, habitat and hatches. Variety is one of this river’s biggest attractions.

Rainbow Trout (fly fishing)

Rapid Creek

Today these streams are filled with trout, but before stocking began in 1886, it was mostly suckers.

Trout (fly fishing)

Rick Robinson’s Guide To Fishing • FAVORITE

Fishing Lure – #5 Shad Rap

• FAVORITE

Words Of Advice – “Keep moving until you find fish.”

• FAVORITE

Thing In Your Tackle Box – Jigs

Rick Robinson is a DSG account manager in Sioux Falls, South Dakota.

Lake Of The Woods

Known as the “Walleye Capital of the World,” this lake has become legendary.

Walleye Devils Lake

North Dakota’s largest natural body of water has roughly quadrupled in size since 1993.

Red River Of The North This area is the country’s go-to spot for massive channel cats.

Catfish

Walleye / Northern Pike

Hayward Lakes Area

Hayward is home to the Freshwater Fishing Hall of Fame, and the waters of the Chippewa Flowage host some of the state’s best fishing events.

Muskie / Walleye

Lake Michigan St. Croix River Lake Oahe

The largest of the four Missouri River reservoirs, Lake Oahe is 205 feet at its maximum depth.

This river was designated as a National Scenic Riverway in 1968.

Autumn makes for incredible salmon fishing on Lake Michigan – you can even catch them from shore!

Salmon

Muskie

Lake Winnebago

Walleye

Lake Vermillion

In the 1940s the National Geographic Society declared Lake Vermillion one of the 10 most scenic lakes in the U.S.

Walleye / Northern Pike

Trout Run Creek

This spring-fed creek has plenty of cover, deep pools and undercut banks to support its trout.

Brown Trout

Sturgeon spearing season is short, but it’s not impossible for these prehistoric monsters to hit 150 pounds!

Walleye / Sturgeon (spearing)

• FAVORITE

Body Of Water To Fish – Big Stone Lake (spring), Lake Oahe (summer) and Lake Winnipeg (late winter)

• FAVORITE

Place To Shop – Local bait shops; they are the best source for local information.

• WEIRDEST

Thing You’ve Ever Caught On The End Of Your Line – A woman’s swimsuit

recommended

READING

Reviews of great books for small-business owners

The Go-Giver

by Bob Burg and John David Mann When Joe, the protagonist of this book, is described early on, the authors tell us that he is a go-getter, ambitious and hard working. However, they also tell us that he often feels like he is “doing a lot of going but not a lot of getting.” It is a feeling that almost everybody can relate to, particularly smallbusiness owners. They answer their first email at 7 a.m., and before you know it it’s 7 p.m. and they can’t quite remember all of the stuff that happened.

Day after day brings the same thing. Shouldn’t there be less work or more reward? “Shouldn’t I be making progress?” they ask themselves. Lots of going. Not enough getting.

Our mistake, this book tells us, is putting our “go” energy toward a goal of “getting.”

Instead, the authors suggest, our purpose should be “giving,” and they make a compelling argument. A short read (you can

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CONNECTIONS | SUMMER 2015

breeze through it on a single plane ride or between games at a weekend tournament), The Go-Giver is an enjoyable parable with an important message: Generosity is the key to success.

Hold on! Before you chalk it up to self-help psychology, give this book a chance. It tells Joe’s story as he meets some interesting characters on his journey toward a more fulfilling – and successful – approach to his job. He starts with a mysterious business wizard called The Chairman, who introduces our hero to a series of incredibly successful people who share a common set of “rules” for business (The Law of Value, The Law of Authenticity, etc.) and a shared sense that we can only thrive by putting the needs of others above our own.

It’s inspirational to see how Joe’s situation improves once his focus changes from himself to those around him. It’s also

helpful to read about practical applications of this philosophy, from a successful business negotiation to a successful marriage. The Chairman and his devotees don’t just tell Joe how to get better at business, they show him how to improve, in ways that we can all relate to. Many of the characters will look familiar.

They will share characteristics with some of the most successful business people you have met in your career, and you will gain an insight into how they do things differently than the rest of us.

The Go-Giver is highly recommended for anybody who wants a fun read, an interesting story and a simple way to readjust their focus toward the things that really matter. Success starts with giving, and this book shows you how to begin.

The Go-Giver is published by Penguin Books and is available at most bookstores, including www.amazon.com.

WWW.DAKOTASUPPLYGROUP.COM

MEET THE DSG TEAM |

AN INTERVIEW WITH DAN GATZKE,

BRANCH MANAGER, FARGO WATERWORKS Dan Gatzke has worked for DSG since 1999. He worked in the warehouse, city desk, inside sales and quotations departments before becoming the branch manager of the Waterworks branch in Fargo, North Dakota, in 2015.

Q – What was going through your mind when

DSG named you the branch manager?

Q – Tell readers about a recent trend you’re seeing

in the waterworks industry.

A – I was surprised. I still kind of feel like the new guy

here because our team is so experienced. Some

people have worked here for 30 years or more.

It’s exciting, though. It was time to take the next

step, and I’m ready for the challenge.

A – We’re seeing a larger focus on water quality.

New laws are coming out regarding stormwater

pollution, and we’re seeing a lot more products

that address the issue. One example is a hydro

separator. It’s an underground system that

catches runoff water from, say, a parking lot and

then separates out the debris and oil from the

water before going into the river or lake. From

aboveground it looks like a typical storm drain.

Q – Throughout your career, who is someone who

has given you great advice, and what’s the best

advice they gave you?

A – Jack Hendrickson and Kurt Losee here at DSG have

been important mentors for me. Something that

Jack once said to me that I’ll always remember is,

“Anyone can sell a piece of pipe, it’s how you take

care of your customers that makes the difference.”

Q – What’s something that you’re looking forward

to when you have some free time?

A – My fun is usually in the fall cheering on the

NDSU Bison football team.

Q – What’s your biggest strength when it

comes to helping DSG customers?

Q – If you could travel anywhere, where

would you go?

A – I always put the customer first, and I take pride

in knowing that their needs are met. If I need

to put a fitting in my truck at 10 p.m. and

deliver it to a customer who needs it, then

that’s what I’ll do.

A – I’d love to get back to New York City. Last time

I was there in 1995 I had a picture taken of me

near the top of one World Trade Center tower

looking across at the other tower. I’d like to

go back and see firsthand how it’s changed.

Opportunities Are Piling Up For LEDs If you’ve read any articles about LEDs lately, you know that they’re here to stay. Typically known for their high efficiency (and as a result, their energy savings for end users), LEDs are also proving to be a valuable asset to electrical contractors in a way that some may not have considered. With an average rated life of 50,000 hours, LEDs are reducing projects that call for the replacement of ballasts and bulbs. While it would be easy to regard this reduction in workload as a negative, the change is actually having a positive effect for electricians.

By eliminating some of these high-manpower maintenance jobs, contractors have more time to tackle more productive work that requires fewer hands – something that has become especially important in a time when there is a shortage of skilled workers. In 2014, DSG worked with Ada Electric, an electrical contractor in Ada, Minnesota, to put LED lighting to work for them.

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CONNECTIONS | SUMMER 2015

Ada Electric is owned by Paul Brommenschenkel.

The business was established in 1972 by Paul’s father, Cornelius “Corky” Brommenschenkel, who taught Paul the ropes while he attended high school. Paul sharpened his business know-how, earning a business degree from the University of North Dakota, before taking over ownership of the company in 2009. In 2014, Ada Electric partnered with DSG on a large LED lighting project that would serve to prove just how beneficial this new technology can be to all kinds of industries – even agriculture.

While it handles residential and commercial projects, the majority of Ada Electric’s work is with American Crystal Sugar Company, the nation’s leading sugar beet producer. Specifically, Brommenschenkel and his crew are in charge of service and maintenance on beet piling stations in the Hillsboro, North Dakota, and Crookston, Minnesota, areas.

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Dan Walsh (left), DSG account manager, and Paul Brommenschenkel (right), owner of Ada Electric, put together a winning bid for the Hillsboro beet piling station.

For the unfamiliar, the Red River Valley (northeast North Dakota and northwest Minnesota) experiences an annual sugar beet harvest season that lasts for a few weeks, normally between late September and early October. During this time, farmers run 24-hour-long operations, harvesting and delivering sugar beets to stations where they are weighed and unloaded. Beet piling stations are temporary storage areas where the sugar beets are unloaded (using huge machines known as “pilers”) in mounds as high as 32 feet containing up to 70,000 tons of beets. Ada Electric provides maintenance on these pilers. “We service about 35 beet piling stations,” says Brommenschenkel.

“We help get them ready in the summer, and then during beet harvest season, we’re on call 24 hours a day.”

In August 2014, Ada Electric worked together with DSG to provide LED lighting to a new beet piling station in Hillsboro, North Dakota. DSG Account Manager Dan Walsh joined forces with Brommenschenkel to put together the bid for the project, which included RAB Lighting mount-style flood lights and roadway lights in order to cut down on maintenance costs and provide energy savings. “Our proposal recommended RAB FXLED150T flood lights that produce more than 14,000 lumens and have a lifespan of 100,000 hours, along with RAB’s RWLED3T150SF roadway lights that are specifically designed for the harsh environments of outdoor use and should last more than 25 years,” says Walsh. “This lighting is highly energy efficient, which is great for American

Crystal, but it will save us a lot of time too,” adds Brommenschenkel. ”Every year, we get into a bucket truck and spend hours replacing bulbs. Now I’ll be able to spend that time doing jobs that are more beneficial to our customers.”

The beet piling station was operational by October 1, 2014, just in time for that year’s sugar beet harvest, providing enhanced lighting and ultimately improving safety for beet harvesters.

“Everyone is happy with how things turned out,” says Brommenschenkel. “We’ve worked with DSG since my dad started the company, and we’re glad to be able to add another success story to our history.”

An Ada Electric employee installs a RAB LED fixture on a wood pole for the Hillsboro, North Dakota, beet piling station.

MEET THE DSG TEAM |

An Interview With Stacey Olson,

BRANCH MANAGER, DICKINSON Stacey Olson has worked for DSG since 2000, serving in quotations, inside sales and operations manager roles before becoming the branch manager in Dickinson, North Dakota, in 2015.

Q – What was going through your mind when

DSG named you the branch manager?

Q – What’s your biggest strength when it

comes to helping DSG customers?

A – I was excited and a little scared. I’m at an age where

I should probably be looking at winding down

instead of ramping up, but that’s just not me.

A – Probably my honesty. I don’t lead our

customers on in any way.

Q – Who is someone who has given you great

advice, and what’s the best advice they

gave you?

A – I used to work for Square D before DSG, and my

boss there told me early on in my career that

“if you don’t like what you’re doing, you need to

find something else to do.”

Q – It’s no secret that western North Dakota has

seen tremendous growth. What’s one way you

help DSG customers keep up?

A – We try to go above and beyond for our customers

in any way we can. One example is that we typically

make two deliveries a day, once in the morning and

once in the afternoon. But if a customer is in a bind

and needs an emergency item, we’ll make a special

trip for them.

Q – You’re busy as the branch manager.

What’s something that you’re looking

forward to when you have some free time?

A – Going to concerts. I love music, and I’m an

old-school rock ‘n’ roll type of gal.

Q – What’s your favorite place to grab a

bite to eat in Dickinson?

A – El Sombrero, or what my friends and I call

“The Hat.” They have great authentic

Mexican food.

Q – If you could travel anywhere, where

would you go?

A – I would love to visit the Florida Keys. It’s

on my bucket list.

Take A Vacation Where The Walleye Never Have A Day Off. Discover The Amazing Lake Of The Woods.

Lake of the Woods in Minnesota is home to the best freshwater fishing in the world, and a trip to Ballard’s Resort or Ballard’s Black Island is the perfect way to experience it to the fullest.

All-inclusive fishing packages – We cater to anglers who are in search of a no-worries

guided vacation package with lodging, fishing, meals, beverages and more. You simply show up and catch the fish, while we take care of everything else.

Incredible fisheries – Lake of the Woods is home to more than 1 million acres of water, 14,000

islands, 65,000 miles of shoreline and multiple species of fish, including the ultimate prize – walleye.

Ballard’s Resort and Ballard’s Black Island provide prime boating access to all of it.

Join us at Ballard’s Resort/Ballard’s Black Island and reel in an adventure of a lifetime.

Ballard’s Resort • Ballard’s Black Island •

www.ballardsresort.com www.blackisland.com

• 218-634-1849 • 218-634-1996

JOB SITE |

The Art Of

Employee Retention

The current shortage of tradespeople has created a massive hiring challenge for contractors. It’s easy to find a stack of articles that describes the trials of electricians, plumbers and HVAC contractors who simply cannot find additional employees to hire as the economy begins to show signs of life. Strangely, less attention has been paid to the related issue of employee retention, which can be a frustrating challenge in its own right. If finding qualified people is a problem, then keeping great people becomes a critical part of the success of any business.

Issues with hiring and retention have the same root, at least in the construction industry. In a recent poll of high school students, the career “construction worker” was rated 247th out of 250 choices. That is shocking in and of itself, but a related survey is even more troubling: When tradespeople were asked if they would encourage their children to follow in their footsteps, 70 percent said no.

This tells us that the task of changing the image of the trades really starts with current employees rather than prospects. The more good people we can retain – and inspire – the more attractive our companies become. This is a universal truth, and one that applies to our entire industry. How can it be accomplished?

Retaining great employees is a two-step process. First, you need to obtain and identify great employees, then you need to keep them.

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CONNECTIONS | SUMMER 2015

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Recognize Great People

It’s no surprise that step one begins with choosing great employees. It’s not just about skills – a positive attitude is just as important. Consider how many instances you can recall where an employee washed out of your organization because they weren’t good enough at their job. Now compare that to how many times workers left because of some kind of personality conflict or work ethic issue. It’s clear that only good people can become good employees. Similarly, it helps to identify which employees are the most important to retain.

This is impossible if you don’t get to know them a little bit. Good communication is important for any manager. Spend some time with employees and find out what makes them tick. Get their feedback and offer them direction. This is the only way to get a feel for which employees are the right fit for your team. Best of all, it makes the second step – keeping those great employees – a lot easier.

Retain Great Employees

An article by talent management consultant Nisa Chitakasem on www.talentmgt.com identifies some basic steps that employers can take to keep their best people in the fold:

Give them a sense of direction.

Good employees thrive on feedback. It’s also important to keep them informed about where the company is headed. After all, these employees are looking at the big picture, and that is a good thing.

Communicate clearly.

High achievers like to know what is expected of them every day. By communicating this to them clearly, you free them to focus on getting jobs done on time and on budget.

Pay attention to exit interviews.

Many times the departing employee sees this conversation as a time for complete truth, sharing information about the organization that would otherwise not be revealed. Take exit interviews seriously and make changes based on their results.

In short, the best way to keep great people is to make sure that your company is one that great people want to work for. Word gets around, and before you know it, you’ll start attracting more good people. That’s great for business, and that’s good for everyone involved.

RAB introduced the industry’s first floodlight with enclosed wiring in 1946.

More Than 68 Years Of Brilliant Ideas

RAB Lighting: Setting the pace for lighting advances then and now.

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CONNECTIONS | SUMMER 2015

In the 1980s, one family-owned company improved lighting efficiency and convenience forever. The first to pair motion-sensor technology with lighting, RAB Lighting made a name for itself as the “sensor company,” but as its history proves, it’s much more than that.

RAB was established in 1946 by Raymond A. Barna (and his father) in the Bronx in New York City. His company was named after his initials, but Raymond passed away at an early age, leaving the company to his 25-yearold son, Richard Barna. Despite his young age, Richard was destined for success, and set on a course that grew the company 15 percent each year for 15 straight years.

In its early years, RAB was responsible for a number of significant lighting advances.

In the ’40s, RAB invented the first floodlight with enclosed wiring. In the ’50s, RAB was the first manufacturer with unbreakable Lexan® globes. In the ’80s, it introduced motionsensor lighting.

In the ’90s, RAB pioneered industry firsts in packaging and merchandising. With fullcolor packages and working units featured on gondola displays – two progressive concepts at the time – RAB’s merchandising strategy transformed the counter area for distributors from a generic product pickup area into the retail-friendly space it is today. In 2008, RAB introduced what it called a “Greendola,” a display with energy-efficient products. In 2012, it introduced its digital “Greendola” featuring an iPad in the header that allowed contractors to use learning modules while they waited for products.

In 2009, Richard Barna’s son, Ross Barna, took over the company. A Harvard University alumnus, Ross is both innovative and bold.

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He has invested wholeheartedly in the future of LEDs, bringing a new wave of LED lighting breakthroughs, including the introduction of the industry’s first affordable LED wallpack. In his first three years, Ross doubled the size of the company.

Today, RAB has more than 500 employees worldwide.

It’s headquartered in Northvale, New Jersey – across the Hudson river from its Bronx roots – with a warehouse facility in California as well as 30 rep warehouses across the country. It sells close to 50,000 products through electrical supply representatives and distributors, including DSG. Along with its impressive history, RAB continues to make a name for itself as a contractor-friendly company.

Take, for example, the fact that it doesn’t sell to home stores. “It’s important to us to support the electrical industry and those who work in it,” says Matt Taets, district sales manager for RAB. “We’re highly committed to the quality of our products, and that quality extends to the installation. There’s no doubt that a professional electrician is the best person for the job.”

Continued on page 32 

RAB’s LED “Greendola,” introduced in 2012, features an iPad to offer customers an interactive experience.

BINNING IS THE SECRET TO CHROMATIC CONSISTENCY During production, LEDs will inevitably vary in color, and the difference can be significant. In response to this color shift, many manufacturers group the different color variations using a process called “binning.” Just as the name implies, this is a sorting technique of LEDs of similar color and brightness to offer end users lighting consistency. This is not a new concept, however. Lighting manufacturers have “binned” (or sold) other types of lamps by brightness and color for years.

LED products from RAB Lighting are known for their outstanding color consistency. Its indoor fixtures utilize three-step binning (5000K outdoor fixtures are mostly binned to a 7-step tolerance), which means that the potential color difference between LEDs in the same bin will be unnoticeable by the human eye. RAB takes it one step further, offering not only color consistency but color stability as well. With what it refers to as Absolute White™, RAB guarantees that its LEDs will shift no more than 200K for the five years following delivery to the end user.

Inconsistent Color

Consistent Color

Continued from page 31

RAB also offers free lighting layout services.

Contractors can submit project specifications, and RAB will provide photo-realistic renderings, traditional point-by-point layouts, specification sheets and even nighttime simulations to show the finished installation. “We recognize that contractors have a lot of irons in the fire,” says Taets, “and oftentimes they don’t have the manpower to develop something like this. We simply want to make their job easier.”

Finally, RAB performs a two-hour burn-in test on all of its products. This rigorous testing ensures that fixtures are operating to specifications before they’re released for sale. RAB backs up its testing with what it calls a no-compromise warranty, which promises that its products will be free from defects in materials and workmanship for a period of five years. This includes the coverage of light output, color temperature, the driver and the fixture

finish. “Our quality commitments are designed to minimize callbacks and make contractors look good in the eyes of their own customers,” explains Taets.

With more than 68 years of lighting experience, RAB continues to innovate. The lighting world is watching, and it will be interesting to see what RAB does next. For more information on RAB Lighting, visit www.rabweb.com.

All RAB lights undergo a two-hour burn-in test.

MEET THE WPLED80 RAB Lighting is once again making an impression in the lighting industry with its newest innovation – an ultra-efficient 80-watt LED wallpack named WPLED80. This high-output fixture replaces up to 400W metal halide fixtures, reducing energy consumption by an impressive 78 percent and saving $200 in annual energy costs per fixture (with typical daily usage). End users are looking at a payback period of less than two years when factoring in energy savings alone.

Energy efficiency isn’t the only savings factor, though. With a 100,000-hour LED lifespan, maintenance and re-lamping requirements are dramatically reduced, adding even more cost savings for end users. The WPLED80 emulates the look of a traditional wallpack from the front and has a sleek low-profile design. It’s UL listed for wet locations and includes a wiring plug gasket that seals out any moisture. Finally, the WPLED80 features a heavy-duty, hands-free tether and side access panel for easy wiring and inspection.

Contact your DSG representative to learn more.

MEET THE DSG TEAM |

An Interview With Jeff Larson,

BRANCH MANAGER, WILLISTON Jeff Larson has worked for DSG since 1998, serving in a number of roles and departments, including the warehouse, city desk, inside sales and outside sales, before becoming the branch manager in Williston, North Dakota, in 2015.

Q – What was going through your mind when

DSG named you the branch manager?

Q – What’s your favorite place to grab a

bite to eat in Williston?

A – I was excited to accept the challenge. I didn’t think

it would happen this soon, but it’s the next logical

step for me.

A – I would have to say Outlaws. It has a nice

atmosphere and a darn good steak.

Q – What’s your biggest strength when it

comes to helping DSG customers?

Q – If you could travel anywhere, where

would you go?

A – I’m passionate about keeping my word. If I say I’m

going to do something, then I’m going to do it.

A – I’d probably say Norway. I have a lot of family of

Norwegian descent so it would be interesting to

learn more.

Q – It’s no secret that western North Dakota has

seen tremendous growth. What’s one way you

help DSG customers keep up?

Q – Throughout your career, who is someone who

has given you great advice and what’s the best

advice they gave you?

A – It’s about listening first, then making sure we have

the right product and the right amount of product

on hand. Our customers can’t be successful if they

are waiting even the slightest bit for the materials

they need, so we do everything to make sure they’re

available to them.

A – I’ve had several mentors, but the best advice

probably came from Rick Whitworth at our

Bismarck branch. He said that if you be yourself

and treat your customers as friends and family,

that’s exactly what they’ll become. And it’s true.

Some of my best friends today started off

as customers.

Q – If you could have any superpower, what

would it be and why?

A – I would love to see the future. I don’t like surprises.

GROW YOUR BUSINESS |

Get An Early Start On

Succession Planning

Why it’s never too soon to start thinking about your future.

Business owners often spend their days consumed with the day-to-day operations of their company.

This blur of commitments can make it easy to ignore the seemingly distant idea of retirement.

Unfortunately, this means that a large percentage of business owners – especially contractors – tend to put off the idea of “succession planning” as something that can wait. In truth, making plans for a smooth transition doesn’t just benefit a company’s future – it provides certainty, clarity and positive energy for the here and now.

Most contracting businesses are heavily dependent on top management, yet according to

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a survey by Baker Tilly International, 50 percent of business owners indicated that they hadn’t started to plan their exit strategy. Furthermore, according to Electrical Contractor magazine, the lack of a succession plan is one of the top five reasons why a business fails.

“Most business owners start thinking about succession planning in their 50s,” says David Evenson, owner of Capital Resource Management, a thriving financial planning business in Grand Forks, North Dakota, “but they should start thinking about it as soon as they take ownership.”

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It may seem extreme to start thinking about the end of a business at the start of it, but preparing a succession plan sooner rather than later can open the door to a lot of possibilities.

For starters, planning earlier makes planning easier. “There’s less pressure to make decisions quickly, and business owners have more time to iron out details and explore potential situations,” Evenson says. For instance, let’s say a business is being bought out by a group of employees. The business owner decides that he or she wants to retire at the end of the year, but the employees regretfully tell the owner that they don’t have the funds to purchase the business right away. Instead, they may need three to five years to come up with the money. Now the business owner is left with a more limited (and less practical) set of options to sell the business or may be forced to continue

working longer than he or she wanted. If the business owner had a succession plan in place, they would have been able to implement their exit strategy at the proper time and retire when they wanted to.

David Evenson is the owner of Capital Resource Management.

Planning early can also allow time to make adjustments that will make a business more appealing to potential buyers, whether that’s to a group of employees, a family member or externally to an outside party. Putting systems in place, improving financial records, training future leaders and minimizing debt are all steps that can maximize how attractive a business is to potential suitors.

Continued on page 36 

SIGNS THAT YOU MAY BE READY TO RETIRE

When it comes to passing on the business, timing is everything. If you can answer “yes” to more than one of these questions, then you might be ready to put your succession plan into action.

1. Is your business profitable? (The best time to sell a business is when you can get top dollar for it).

2. Do you have a successor that is qualified to take over?

3. Do you spend more time thinking about retirement than improving your business?

4. Is your job no longer fun? Do you dread going to work in the morning and can’t wait to leave at the end of the day?

5. Are you experiencing health issues?

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Plus, if there is a plan in place ahead of time, the owner can act on it when the market is favorable rather than be forced to do it at a time that’s less than ideal.

There is also the advantage of being prepared for unfortunate circumstances, such as an illness, an accident or death. Owners with a succession plan in place leave their families and employees in a much better state.

“When you talk about succession planning, it’s about more than just the business,” says Evenson. “It’s about the owner’s family and their future too.”

It’s a lot easier to get the ball rolling on a succession plan than one might think. Owners should start by finding a financial planner or advisor that they connect with. A professional financial planner can not only provide advice but also help with third-party collaborators such as an attorney and an accountant, and handle much of the paperwork. “Just remember that a good succession plan is one that evolves,” adds Evenson. “You should review your documentation annually.”

Business owners shouldn’t wait to get started on a succession plan. The earlier a plan is in place, the better off the owner and their business will be.

Sources: Successful Succession Planning, Electrical Contractor magazine, www.ecmag.com/section/ miscellaneous/successful-succession-planning; Don’t Leave It Too Late, Baker Tilly International, May 2013, www. bakertillyinternational.com/web/insights/dont-leave-it-toolate.aspx; Murphy Business & Financial Corporation, www. murphybusiness.com/georgia/when-should-you-start-yoursuccessionplanning.aspx; Succession Planning: What Your Retired Self Has To Say To You Before It’s Too Late, All Strategy, www.allstrategy.net/succession-planning-whatyour-retired-self-has-to-say-to-you-before-its-too-late/

ION PUTTING THE SUCCESS IN SUCCESSION PLANNING Here are three things that owners can do early on in their business to help ensure a positive succession planning experience.

Figure out the value of the business.

In addition to financials, a business owner should be prepared to communicate to potential buyers or successors what differentiates the company and how it’s unique, showing them the value they’ll be getting beyond dollars and cents.

Set goals.

When do you want to retire and what does that lifestyle look like? If a business owner is proactive about the future of their business, they can end their career with a retirement that they truly look forward to.

Test out the succession plan.

Take a vacation. Having the owner spend a few days away is of little risk to a business, but it can be extremely revealing to what parts of the business fail and what runs smoothly while the owner is away.

recommended

READING

Reviews of great books for small-business owners

The E-Myth Contractor

by Michael E. Gerber If you’re a small-business owner (particularly a contractor), then you likely started your business as a technician, working in your business and climbing the ladder from apprentice to journeyman to master. Somewhere along the line, you had an entrepreneurial revelation and decided to buy an existing business or start one from scratch. Either way, the skills you learned working in the field probably did not prepare you with all of the skills you need to run your own business. If that sounds familiar, The E-Myth Contractor by Michael E. Gerber is a book you should consider picking up.

It is based on the original Michael E. Gerber book The E-Myth, published in 1985. At its core, this is a book about “Why most small businesses don’t work and why.” The E-Myth Contractor applies the same lessons

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specifically to the contracting industry. It provides an overview of how the owners of contracting companies often get caught up working in their business (Tech quits? Cover for them! Need to get the job done right? Do it yourself!) and not spending enough time working on their business. The author illustrates how planning, strategic thinking and developing systems can empower your team to operate a profitable business without you – the owner – being consumed with the minutiae of day-to-day operations. When the owner stops trying to do it all himself, he creates a business rather than simply a job.

The author goes on to apply this concept to a host of topics that contractors will find enlightening: supervising people, working with subcontractors, dealing with estimates, managing

money. The book’s main point is that an owner needs to be focused on the bigger strategic picture while managing a team of technicians who do the more tactical work of the business.

If you are an owner and you accomplish this correctly, it will result in more time to devote to yourself and your family. It’s a nice vision, and a very realistic one.

The E-Myth Contractor is just over 100 pages long, making it a perfect book to squeeze in during lunch breaks or before bed. It’s an easy-to-read and -comprehend story that is packed with ideas and information that you’ll continue to refer to for many years. It is definitely recommended reading for anyone who owns or manages a contracting business.

The E-Myth Contractor is published by Collins Business and is available at most bookstores, including www.amazon.com.

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NEWS WIRE |

New South Dakota Scholarship Program

Addresses The Trades Shortage

The Mount Rushmore state launches a scholarship program to offer free tuition to those who wish to pursue trade degrees.

The imminent shortage of skilled workers is no longer imminent – it’s upon us. In fact, accordingto ManpowerGroup, for the last five years, the hardest segment of the workforce for employers to staff has been skilled workers.

The most noted cause of this shortage is the pending retirement of baby boomers, with nearly 20 percent of skilled-trade workers between the ages of 55 and 64. However, there are other contributing factors, including a paradigm shift in high schools over the last couple of generations to focus on preparing students for a four-year college education rather than one at a vocational school.

The perspective of youth and their parents can also be a challenge to reckon with as they fail to recognize these types of jobs as prosperous and rewarding.

The state of South Dakota is looking to reverse this trend. In 2015, the state approved a $50 million scholarship program, called Build Dakota, that will provide full-ride scholarships to students who pursue technical degrees at Mitchell Technical College in Mitchell, Western Dakota Technical Institute in Rapid City, Lake Area Technical Institute in Watertown or Southeast Technical Institute in Sioux Falls.

In its first five years, Build Dakota will provide nearly 300 full-ride scholarships, and the endowment fund is expected to support approximately 50 full-ride scholarships per year after that. The program is funded by a $25 million donation from Denny T. Sanford, one of South Dakota’s most prominent philanthropists (he owns First Premier Bank, and Sanford Health is named after him), along with a $25 million contribution from the South Dakota Future Fund.

In a news release issued by news.sd.gov, South Dakota Governor Daugaard says, “The establishment of this scholarship will mean that each year hundreds of our young people will have the opportunity to enter high-demand fields without incurring debt. The impact of this will be huge, not only for the students who receive the scholarship, but for our entire state, which has been faced with workforce challenges.”

Applications are available now online at www.builddakotascholarships.com and are open to both in-state and out-of-state students, as long as they agree to work in their field of study full time for three years in South Dakota. The scholarships will cover the cost of tuition, fees, books and any other required program expenses.

Sources: Higher Education: Taking Aim At Workforce Shortage, Rob Swenson, Prairie Business Magazine, January 2015, www.prairiebizmag.com/event/article/ id/22552/; America’s Skilled Trades Dilemma: Shortages Loom As Most-In-Demand Group Of Workers Ages, www.forbes.com/sites/emsi/2013/03/07/americasskilled-trades-dilemma-shortages-loom-as-most-in-demand-group-of-workers-ages/; State Partners With Denny Sanford To Establish “Build Dakota” Workforce Scholarship Program At Technical Institutes, http://news.sd.gov/newsitem.aspx?id=17083

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SUMMER 2015 | CONNECTIONS

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North Dakota:

Bismarck (800) 363-7112 Bismarck Waterworks (855) 337-9258 Dickinson (855) 245-2098 Fargo (800) 437-4702 Fargo Waterworks (800) 342-4676 Grand Forks (800) 633-2211 Minot (800) 472-2145 Williston (800) 637-0170

P.O. Box 13573 Grand Forks, ND 58208-3573

South Dakota:

Aberdeen (800) 660-5532 Mitchell (800) 660-5534 Pierre (800) 660-5537 Rapid City (800) 660-5538 Sioux Falls (800) 540-8215 Sioux Falls Waterworks (800) 660-5531

Minnesota:

Alexandria (800) 345-0094 Austin (800) 521-6747 Bemidji (866) 506-0280 Burnsville (800) 325-0514 Grand Rapids (877) 327-1454 Ham Lake (763) 784-4478 Hopkins (800) 328-3976 Monticello (888) 295-9355 Oakdale (651) 777-1044 Rochester (800) 562-1784 St. Paul (800) 652-9784 Winona (800) 237-0470

Wisconsin:

La Crosse (800) 279-2726 Madison (877) 252-8739 New Berlin (800) 783-5835 Plover (800) 472-1661 Rice Lake (800) 962-2759

Montana:

Billings (844) 753-9120 Bozeman (800) 416-0005 Helena (800) 697-0005 Kalispell (800) 949-0005 Missoula (888) 865-0005

Minot Williston Grand Forks Dickinson

Kalispell Missoula

Helena Bozeman

Bismarck Billings

FARGO

Aberdeen Rapid City

Pierre Mitchell Sioux Falls

Bemidji Grand Rapids Alexandria Twin Cities

Rice Lake

Plover Winona La Crosse Rochester Madison Austin New Berlin

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Burnsville Ham Lake Hopkins Monticello Oakdale St. Paul