LeePemberton.com

This is a media and political game and you as a small business person must not buy into it!
Don’t start thinking about fuel surcharges and such – it will only hurt your business!

Yes, what you pay for a gallon of gas is important, but what is really important is your overall costs of producing and delivering your service, or what is called your “Breakeven” which I will refer to as your “B/E”. You must be able to know what it costs us you to clean an average square foot of carpet in your business.

The truth is that gas at $5.00 per gallon vs at $3.75 will have only a negligible effect on your “B/E”.

Here is a real life example: Let’s take a one TMT operation grossing about $100,000 per year – we will use the operations real numbers here -

With $3.75 gas, and productivity is 700 sq ft per hour – your Sq ft “B/E” is 10 1/5¢

With $5.00 gas, and productivity is 700 sq ft per hour – your Sq ft “B/E” is  11¢

This information has been calculated using real data from a real company, but yours will be different. If you would like to plug your figures into this calculator, just let me know and I will look into setting up a webinar for that purpose.

When I read this, I realized how far we allow ourselves to stray from the “simple stuff” that makes us “real” in our service businesses! Please read this and see how you feel about it.

   – Lee
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Simple Business Truths From Mom
author – Paul Spiegelman

Here are some of my favorites and why they’ll be important to your success.

1. “Always Be Nice”
It seems so simple, but I’ll never forget my dad telling me that. When I was a child and my dad would run into an old business colleague, that person would pull me aside and tell me that my dad was one of the nicest people he had ever met. I always hoped people would say that about me one day. (And I’m still working on it.) Being nice and having kindness in your heart will get you through almost any situation.

2. “Listen”
Stop telling people what you can do for them and listen to what they’re saying they need from you. You can’t learn what your customer needs (and what they will buy from you) if you’re too busy talking about what you can give them.

3. “Eat Your Vegetables”
The same way it’s good for you to plow through your vegetables as a kid, you’ll find enormous benefits in reading to improve your business. Even the artichokes of business books. You can never read too much.

4. “Stop Picking Your Nose”
Be aware how you conduct yourself out in the world. People are watching you and your business. And not only should you avoid them catching you doing something questionable, don’t do that questionable thing in the first place.

5. “Smile”
I was the middle kid and the serious one growing up. My mom always had to remind me to smile. Now I’ve written two books about smiling in business.

6. “Never Burn Bridges”
This was another one from my dad. We all face situations in which we want to tell someone off or win a fight. It isn’t worth it. Life is too short and the world is too small. People come, people go, and then people come back. We are all in the people business and it is sometimes better to bite your tongue and know that the right thing will happen if you take the right path.

Don’t just apply these parental sayings to your business. Take it a step further and ask yourself, “If I explained to my parents how I run my business, would they be proud? Would they be happy with how I treat others and why I take certain actions? How many times would I have to tell them, ‘That’s just how business is done.’” If that isn’t a happy conversation, maybe it’s time to review how you’re running the company.

For more about Paul Spiegelman, please visit…
http://www.inc.com/author/paul-spiegelman

In 2012, we appear to be undergoing a shift from a business-to-consumer marketplace to a consumer-to-business and consumer-to-consumer marketplace—where buying and selling of products and services is increasingly driven by consumers themselves. To me it is like an out of control – unstructured “Word of Mouth” marketplace on steroids! The so called “Arab Spring” and “Occupy Wall Street” are examples that I see of this type of conduct.

Good or not so good, this is happening because of the incredible ability today of consumers to communicate immediately with each other in massive volume.

All of this is having an effect on your business and your marketplace.

We, as service deliverers, are facing serious, but as of yet, unknown changes! read more

Jim Pemberton’s CleanChat Blog article today reveals his observations regarding the sale of carpet & fabric protection services.

Here is what I see superficially as other major contributors:

* Add-ons are no longer a “slam dunk” aftersale profit builder!
– Consumers now demand good reasons to make these additional investments.

* “Poor” or “Perceived Poor” results in the past are coming home to roost!
– Caused by combinations of inadequate cleaning, preparation, overpromising & underdelivery.

Check out Jims blog:
http://www.jimscleanchat.com/protector-sales-declining/

We all hate cold calls, especially me! On the other hand, I have developed many strong business relationships by overcoming my fear of such a simple (but devastating) action as cold calls. Every restoration contractor will need this ability if he intends to grow the business!

Last week I read a delightfully simple article in the INC newsletter that is really worth passing on . . .

It is titled:
How to Make a Successful Cold Call
by Geoffrey James

There’s a quick and easy way to get a potential customer interested.

Here’s a step-by-step guide to the conversation…

Read more here…
http://tinyurl.com/tip1-20a

The big business story right after Xmas was retail giant SEARS / KMART & their announcement that they will be closing up to 120 stores in the upcoming year. Despite the 2% increase in holiday shopping this year, this 100+ year old company struggled.

This years retail results show Macy’s store sales rise while Sears, Kohls and Penneys stagnate or fall.

Why? Perhaps it is the result of what some refer to as a “Secret Weapon” used by Macy’s:

Macy’s same-store sales have been growing each month since early 2010, following the nationwide launch of the “My Macy’s” local customization program.

Analysts say “My Macy’s” is the No. 1 reason for the company’s impressive turnaround, stemming a long string of quarterly sales and profit declines. “My Macy’s” launched nationwide in May 2009, in the troubled aftermath of Macy’s merger with the May department store chain

Looking at Macy’s (M) crowds this holiday season, you wouldn’t know that major department stores have been creeping toward death’s door for 30 years.

Department stores’ share of the retail market fell from over 7% thirty years ago to a low of 2.4% in 2009, says Craig Johnson, president of consulting firm Customer Growth Partners. But last year department stores’ share rose for the first time in 30 years, Johnson says.

CGP estimates its share will rise again this year, to 2.6%. The reason? In a word, says Johnson: Macy’s.
“Macy’s has been increasing its share of the department store sector primarily at Sears (SHLD) and J.C. Penney’s (JCP) expense,” he said.

So what can we learn from all of this? I would like to share some well stated thoughts from a bright young blogger who posted the following article, headlined . . .

Fears for Sears: Lessons from a Dying Brand,
and his first point is really noteworthy to those of us self-employed small business persons . . .

Lesson #1 Don’t Forget to Take Care of the Goose
(check out all three lessons)
Read the whole story at this link:
http://tinyurl.com/tip1230sears

Every once in a while I run across a memorable quote that I share with you, and this week I came across one written by John Braun (Hitman Advertising) that is so down to earth and sensible that I want to share it with you.

John says: “The bitter truth that no one ever tells you about marketing is that everything doesn’t always work every time. So if you want to stay busy, you MUST take action with several items.“

Go to his blog for more than 20 tactics that can boost you winter volume, (the last five are restorer specific! Print out his list and do something!

Here is the link -
http://tinyurl.com/tiphitman

And, while you are at it, plan to join us February 1st here at the spacious Boston Spectrum at the “Restoration BootCamp”.

For more details, follow the link below -
http://www.pembertons.com/bootcamp

 I have just reviewed a “must read” article from the “Restoration & Remediation” trade journal, written by Walter Lumpp, titled “What the Looming Consolidation Means to Restoration Contractors”

Mr Lumpps’ observations are insightful and will give you some serious issues to consider as you consider your business future! Here are a few excerpts as he speaks regarding the “Wal-Mart effect”. . .

• “Because Wal-Mart has unmatched buying power, it can dictate to suppliers what price it will pay for their products”…
• “Global competition that could drastically alter the way you and I do business is entering our industry”
• “Major insurers are reportedly joining forces with Crawford through pilot programs”…

For the full article and another to follow, use this link . . . http://tinyurl.com/tip1202a
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Walter Lumpp
Walter Lumpp is executive director of the National Institute of Restoration, the nation’s premier association of building professionals dedicated to the repair, cleaning and restoration of property damaged by fire, wind, water or other disasters. For more information, call (434) 973-4200.

from ScienceDaily

This is some incredible stuff! Can you imagine technology where gentle water bubbles can produce the cleaning power of high pressure washers?

This information was sent over by Cliff Zlotnik (the “Z-man”) and his cohort Joe Hughes at IAQ Radio Friday morning. I strongly recommend that you get on their list so you are kept up to date on cutting edge technology in our industry.

Click on this link to READ MORE:
http://tinyurl.com/IAQ1111

Ready for a frigid winter? Here’s how to beat the cold.
Author: Scott Warrington

Here is a link to an excellent, thought stimulating article from the November Cleanfax. The author, Scott Warrington has over 40 years of experience behind him, and his advice shows it! He details (1) – The human effect, (2) – Equipment challenges (including TMT & portable), chemical concerns, and last but far from least — your customer concerns.

Read more…
http://tinyurl.com/tip111111

In a tough marketplace, restoration contractors need a new angle, a different approach to increasing profits and building their business.

An every-increasing “good fit” for them is green, and this doesn’t mean the color of money. Disinfecting and deodorizing services for clients who may already have a contract cleaning or in-house cleaning staff is proving to be a popular option for restoration contractors.

For complete article, please visit…
http://www.ecleanadvisor.com/public/875.cfm