Restoration Rewind Delta Development Group Monthly Newsletter
November 2017
NOVEMBER TRAINING It’s finally November and that means it’s time for modified franchise training!! We are very excited to see everyone in just a day or so to get the month kicked off right. There will be lots to learn so come hungry for knowledge. Next week we are excited for the Trauma Class as well! November will be a busy month with lots of exciting learn opportunities. Can’t wait to see everyone!
November 4th – Franchise Training
Denver, CO
Heating system insurance claims: Furnace and boiler puffbacks BY MATT LIVINGSTON
As the weather gets colder and homeowners start up their heating systems for the first time in months, insurance carriers see an influx of claims for the failure of furnaces and boilers. One frequent issue that can be both messy and potentially dangerous is a phenomenon known as a "puffback."
What is a puffback? A puffback is a release of smoke or soot that occurs when a boiler or furnace misfires. It is important that adjusters and insurance carriers understand what a puffback is and what causes one to occur. Not only are they expensive (and occasionally dangerous), but they are often caused by a non-covered cause of loss. A puffback occurs when a furnace or boiler does not ignite properly and allows oil or gas vapors to build up within the ignition/combustion chamber. When it does finally ignite, the excess fuel in the chamber causes this puffback scenario. The result can be anywhere from a small amount of smoke to a minor explosion, depending on how much fuel has accumulated in the chamber. Puffbacks can occur in both oil and gas furnaces and boilers, but are much more common in oil-fired equipment. Oil furnaces and boilers require more maintenance than their gas-fired counterparts, presenting more opportunities for the ignition process to be hindered if the system is not properly maintained. Additionally, oil is less likely than gas to dissipate, leading to larger average explosions. Forced air, oil-fired heating system puffbacks tend to be the messiest, as oil creates more soot than gas, and the ductwork for the forced air system can spread that soot to every room in the home.
What causes a puffback? Regardless of fuel type, furnaces and boilers should have annual system maintenance. Puffbacks generally occur due to a lack of this routine maintenance or because of agerelated wear and tear. Specific causes can include:
A leak at or near the combustion chamber can allow the fuel to build up in the combustion chamber and can cause a puffback to occur upon ignition. A clogged exhaust or chimney that is obstructed by dirt, dust, fuel residue, rust or corrosion could prevent combustion gases from properly venting out of the furnace. This can cause an internal pressure irregularity that can eventually lead to a puffback, due to an incorrect ratio of fuel to air. A cracked heat exchanger (similar to a clogged exhaust or chimney) prevents the combustion gases from properly venting out the furnace and results in an internal pressure irregularity that can cause a flame roll out. The resulting improper combustion process allows excess fuel to enter the ignition chamber and potentially lead to a puffback when ignition occurs. Manually resetting the system too often when it fails to ignite may cause unburned fuel to accumulate in the chamber and can lead to a puffback once ignition finally occurs. A damaged oil fuel nozzle, such as one that is clogged or cracked, may cause the oil to spray unevenly and result in insufficient fuel for the burners to ignite. The nozzle will continue to attempt to spray and allow excess oil to enter the burner over time. When the oil eventually ignites, a puffback can occur. A clogged burner full of dirt, dust, fuel residue, rust or corrosion can cause a misfire and allow excess fuel to build up in the combustion chamber. This may eventually lead to a puffback when the fuel at last ignites.
How do you diagnose the cause of a puffback? Following a puffback event, it is often not recommended to turn the system on and perform full diagnostic testing, as this can be both dangerous and messy. There are, however, other ways for HVAC professionals to detect if a puffback has occurred and what the chief contributor to the problem might have been. These diagnostic steps include: Check for fuel leaks in and around the combustion chamber. Visible signs of leaking oil are a strong sign that a puffback has occurred, and that the leak and/or air in the oil line were the primary culprits. Check the exhaust/flue for clogs. Blockage in the heating system exhaust could impact the fuel-to-air ratio and prevent fumes from safely venting. If observed during the post-puffback investigation, this blockage is a likely contributor to the problem.
Perform a “candle check� of the heat exchanger. Holding a lit flame near the heat exchanger while the blower is on will provide a visual indication that a crack is present, and will thus provide a likely puffback cause. Inspect the oil nozzle and burner assembly for damage, checking to see if this condition caused the puffback. However, depending on the severity of the puffback incident, the fuel nozzle and burners themselves may have been damaged, limiting the ability to definitively diagnose the puffback cause using this method.
How to Be a Leader People Want to Follow You don't want people to follow you just because they have to!!
“Become the kind of leader that people would follow voluntarily, even if you had no title or position. Conduct a personal assessment and ask yourself,” Would I follow me?” – Brian Tracy Just because you’re a leader doesn’t necessarily mean people want to follow you. Anyone can take on a leadership role, but that doesn’t mean you automatically earn the trust, respect and confidence of your followers. The good news is that almost anyone can hone the skills necessary to become a ‘follow-worthy’ leader. All it takes is a dedication to learning what makes a great leader, and the determination to practice and develop those skills every single day. Following are 7 ways you can become a leader people actually want to follow — not just a leader people follow because they have to.
1. Show respect to those around you (even when you don’t feel like it). It’s easy to be respectful when you’re working with motivated employees or favorite clients. But what about with a customer who eats up your time (and patience) with unrealistic requests? Or the employee who showed up late for work – again? True respect doesn’t depend on the other person doing something (or not doing something). It means recognizing that all people are inherently worthy of respect; even people who drive you crazy or who haven’t done a single thing to earn
it. It means treating people in a way that preserves their dignity and honors their humanity. When you show respect to everyone you interact with, you foster an environment of caring that permeates the workplace. It encourages your employees to treat clients, coworkers and subordinates with the same respect they’ve seen you model.
2. Communicate (in a way that not only informs, but inspires). Good leaders know that communicating clearly and concisely is important for avoiding conflict and articulating expectations. But great leaders understand that communication is about more than just getting across an accurate message. Communication must be efficient and informative, but it can also be used as a way to inspire, motivate and persuade. When you can communicate in a way that a particular outcome is achieved or a certain action is taken, this is when the true impact of great communication shows. In the words of General Dwight Eisenhower, “Leadership is the art of getting someone else to do something you want done because he wants to do it.”
3. Be generous (with time, encouragement and responsibility). When we think of being generous, we often think of monetary generosity; of keeping employees happy by giving gifts, bonuses and regular pay bumps. And while this is certainly one aspect of generosity, it can be far more. True generosity involves being liberal with praise and encouragement; of giving employees the appropriate credit when they have a great idea; of being gracious when people make mistakes. It can also mean letting go of some of the control and giving those around you the chance to take on extra responsibility. Being generous means giving without thoughts of what someone can do for you in return: “Listen with regard when others talk. Give your time and energy to others; let others have their own way; do things for reasons other than furthering your own needs." — Larry Scherwitz.
4. Express your passion (because that’s how passion spreads). True passion is contagious. When you’re genuinely excited about what you’re doing, your enthusiasm can’t help but rub off on those around you. But being passionate about
something isn’t quite enough; you also need to express your passion to those around you. When your employees sense that you have a deep and abiding passion for what you do, they get the sense that what they’re doing is worthwhile; that you’re all on the path towards something bigger and greater than yourselves.
5. Be humble (this doesn’t mean being a pushover). Being humble in the workplace doesn’t equate to not taking credit for your work or ideas, or to letting others walk all over you. What it does mean is taking responsibility for your mistakes, and acknowledging when your followers can do something better than you. Researchers reported that humble leaders were overall more effective and better liked. Co-author of the study, Bradley Owens, writes: “Growing and learning often involves failure and can be embarrassing, but leaders who can overcome their fears and broadcast their feelings as they work through the messy internal growth process will be viewed more favorably by their followers. They also will legitimize their followers' own growth journeys and will have higher-performing organizations.”
6. Be decisive (and take responsibility for your decisions). Great leaders make tough decisions, and then take responsibility for the outcomes of those decisions. No matter how carefully a decision is analyzed and the resultant impacts weighed, poor decisions are bound to be made, and someone has to be accountable. A ‘follow-worthy’ leader isn’t afraid to make these decisions, and knows that avoiding risk also means forfeiting potential opportunities. She seeks out the opinions of those around her in order to make an informed decision, but then takes the final responsibility for the outcome squarely on herself.
7. Show courage (even when you’re scared). All leaders will be scared from time to time – scared of risk, failure and competition. But inspiring leaders forge ahead in spite of this fear, and show courage in the face of adversity.
Mark Twain wrote, “Courage is resistance to fear, mastery of fear – not absence of fear.” Great leaders find ways to harness the energy produced by fear, and turn it into something that propels them forward. They show courage, and encourage those around them to do the same. Courageous leaders know they’re nothing without their team, and are willing to admit they don’t know everything. They understand that sometimes their decisions will be unpopular, and yet they choose to lead regardless. For more of my thoughts on this, see Things Every Courageous Leader Knows.
Conclusion The skills needed to be a ‘follow-worthy’ leader may not come naturally to all of us, but they can be learned and practiced over time. And when those around you witness your efforts, you unwittingly create a culture of generosity, respect and loyalty.
CASH IN THE DOOR DELTA DISASTER SERVICES OF SOUTHERN COLORADO is leading the system with Cash in the Door! Great job Emmis and team!
Marketing Corner Why do people refer us for our services? Do we present well, have great marketing materials, drive well branded vehicles? No… they refer us because of you! As a marketer you set out day after day not to sell but to build a relationship with referrals. Without the relationship there is no trust, no value, and no support if something goes wrong. Building a relationship takes time, skills, and support from your entire Delta Team. Below is a great article on how to develop simple relationship building skills to help cultivate those lasting referral relationships that keep you and your team busy for the long term. Enjoy, Jason
Three Simple Techniques for Building Sales Relationships By David Jacoby
We all have heard the old sales adage: “People buy from people they like.” Also, there is a significant body of social science research that supports this concept. Why is this? When you have a strong relationship with a customer, you tend to have more influence with that customer. That means the customer respects your experience and advice, they are more likely to value your contribution to the decision process, and there is a greater chance of such customer becoming a “long-term” customer. One of the quickest and most effective methods for building sales relationships is building rapport. Rapport enables smooth communication because it allows people to be at ease. Sometimes rapport happens naturally, you might instantly hit it off with someone. This is often how friendships are started. Other times, you have to be more deliberate in building rapport with someone. Three simple techniques to help you quickly help you develop rapport with your customers are: mirroring and matching, finding common experiences, active listening.
#1 Mirroring and Matching Mirroring and matching are based on the powerful concept that people like people who are similar to themselves. Conversely, when people are not similar, it is more difficult to have a relationship with that person. You can quickly develop rapport with a customer by mirroring and matching: •
Body language: For example, if the customer sits down and crosses their legs, you do the same. This sends a positive subconscious message that you are paying attention to all of their communication (non-verbal in this case), making them essential, and signaling you are on their side.
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Voice: The same rationale for mirror and matching body language also applies to mirroring and matching the pace and volume of someone’s speech. Of course, be aware that you do not unconsciously mimic their accents.
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Communication/processing style: People communicate and process information in different ways. Some people are action-oriented and results driven; these types of customers want to get down to business. While other customers may have an emotional communication/processing style and so they welcome a substantial amount of rapport building chit chat before getting down to business. Some customers are analytical and focused on data; these customers want the facts and don’t value lots of small talk. Recognizing your customer’s communication/processing style and adjusting how you communicate is critical for building rapport.
It is important to note that mirroring and matching techniques work at the subconscious level. Obviously, a customer will not do business with just because you are mirroring and matching their body language during a meeting; however, they may be more “comfortable” with you and as a result more open to learning more about your solution. #2 Finding Common Experiences Another powerful rapport building technique is to find common experiences with the customer and then bring those up during the conversation. This is something we all do when we first meet someone talk about the weather, sports or current events. This is a fast way of building rapport, but be sure that you don’t focus only on this step – if you don’t mirror and match your customer, the customer won’t feel that your rapport building is natural or sincere. Social media (LinkedIn, Facebook, Pinterest) has now made it easy even for inside sales reps (who don’t have the benefit of visiting the customer in person) to uncover common experiences with the customer quickly. With social media, any salesperson can promptly research their customers and find
potential common experiences such as career background, current work situation, education background, hobbies, etc. #3 Active Listening The 3rd strategy for building rapport is active listening. Did you know that research suggests that we only remember 25%-50% of what we hear? That means that we miss up to 75% of what the customer is saying! Active listening is a fundamental sales communication skill that is important not only for building rapport but for all other aspects of selling as well. Active listening isn’t merely hearing. Hearing is the physical process of transmitting sound waves to the brain; while active listening means that you're really suspending your thoughts and you understand what you hear. When a customer perceives that you are actively listening to them they feel important, understood, appreciated, and respected. In order to be a good active listener you should: •
Listen with the intent to understand. This means that as a seller you should change your focus from “pitching” your product to a mode where you are genuinely trying to understand the other person.
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Focus completely on listening. No multitasking! The word active means that you are so engaged in listening to another that you really can’t send an email, check your phone, or anything else.
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Ask questions. You inquire to be sure that you're really understanding the speaker and to demonstrate that you are listening.
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Summarize. This technique, above all, sets a great listener apart from others. It is one thing to be able to repeat the key points of what was said – and that is important-but to reflect what it means back to the speaker is when the speaker will feel heard and understood at a deeper level.
Building a strong relationship with a customer is foundational to successful selling, and a great relationship begins with developing rapport. Remember these three simple techniques to help you build rapport on your next sales call: mirroring and matching, finding common experiences, and active listening.
Thank you to all those who wore the Pink Booties in October in honor of Breast Cancer Awareness Month!
Finance Corner 4th Quarter 2017 and Continuing to Prepare for End of Year and 2018 Remember: In order to have good financial data to utilize for your Benchmarks and Targets your QuickBooks MUST be accurate. Garbage In, Garbage Out! If, your reports are not accurate, your financials are not accurate and the information you are relying on to run your business is not accurate! Check your P&L. You are specifically looking for errors in data entry: 1. Are all costs coded correctly? 2. Are all income items coded correctly? 3. Are there things that need to be moved either from one cost code to another or from one job to another? 4. Do you have things charged to overhead that should have been job charged? 5. Is your GPM running within Industry Averages? (35-50%) 6. Is your Net Profit where it should be? (5-10%) 7. Going forward, you need to do this at least once a quarter. Check your Balance Sheet. Again, you are looking for data entry errors: 1. Assets. If you have purchased anything that has a life longer than a year and costs over $500 you need to talk to your accountant. It may be an expense or an asset; but your CPA makes this determination. a. Be sure to point out any purchases to the accountant. 2. Is everything coded correctly? 3. Are there things that need to be moved? Do NOT move anything from 2016 or before. a. Your CPA will need to take care of any prior year adjustments (Taxes)! Do you have customer balances over 12 months old? Discuss writing these off with your CPA. You can still collect and he/she can make the necessary adjustments. But end of year is always a good time to clean these old accounts up. If there are changes you need to make to your Chart of Accounts or Item Lists? Now is the time as you plan for 2018. If you inactivate an item or account in the middle of the year, it can alter the way your report looks, prints, merges, etc.
Set a “Closing Schedule” and discuss with your CPA and others in the office. For Example: All credit card data entry complete by 01.05.18 All jobs invoiced that are complete by 01.05.18. Some of these may need to be dated 12.31.17. Discuss with your CPA. Make sure your subcontractors in QuickBooks are current and accurate. Have 1099’s in the mail to the subs by 01.31.18. Make sure all employee data is accurate in preparation for W-2’s to be sent out. Know who is sending them; you or the payroll processing company. The more you prepare, the smoother your year-end will be and the better reports you will have. “FAILING TO PREPARE, IS PLANNING TO FAIL…”
And we will leave you with this…