It's Time To Trade Up

Eleven million men and women are unemployed in the US. 7.2% of the workforce, one in fourteen are looking for work. And you are keeping your weakest employee because "he may improve". Why are you keeping the one in your office who has more excuses for coming in late than you could imagine?

Hello---are you there? Now is the time to look at your workforce and trade-up.

Yes, trade-up. There are people who are out of work through no fault of their own. The economy has kicked you in the teeth. Trading-up is the way to take advantage of tough times. You told your employees that they had to take a wage freeze and there would be no new hires for a while. You didn't say that everybody was guaranteed to keep their job. If you have ten people working with you, with a trade-up, you will still have ten people.

Everybody has a weak employee, the one you kind-of-feel-sorry-for and you keep on the payroll. Stop it. I know it feels good to help, but you are doing so at the risk of hurting your whole company. In good times you could do this. Not now. Let the weak link go, give a severance if you can, and don't block unemployment insurance.

Help wanted advertising is so thin now, that a simple ad will bring in good resumes and good people. Take your time interviewing, making sure that you get a winner. You will be gaining an employee who understands what it is like to be out of work, and won't take their job for granted.

This will impact your entire work force positively. They will see that you are serious about the survival of your company. They will work hard to equal the tone set by the new hire. They will appreciate the fact that you are working to save the company and their jobs.

You will find many qualified candidates for your company. You may see that you can go after a slice of the market you didn't have before. An experienced person can come in and help train your current staff in their specialty.

Just today, Home Depot announced they were closing their EXPO Design Centers. Go there now, tonight, and shop for a shower door or a table top. Watch the various salespeople and see who is good, who understands the product. Give that person your card and tell them to see you when they are out of work. If you are not near an EXPO store, watch the news for businesses in your area that are closing. You will find a gem working and smiling at customers, even when they know the store is closing.

After one successful trade-up your staff will understand that your company needs hard working people. If not, it is trade up time again.

You Are The New President

The excitement of the Inauguration. The anticipation of change. The beauty of the balls. The invigorating speech. The careful planning to make all this successful. Now, today, inauguration day, you are still the President of your glass company. What are your new policies and plans for the next four years?

Well, you have plans don't you? When are you going to implement them? What are you doing to make them happen. As the old saying goes, 'there is no time like the present'!

You have been up late at night thinking about plans for your company. It is time to start acting on your plans. Maybe not on January 20th, but pick a day that works for you, and introduce new ideas and plans to your company. Bring in a new product line. Do you sell wood windows? Do you sell film or do filming of windows? Do you go after the Bullet-resistant glass marketplace? You can talk about these things just so long, now you have to act.

Set a day within the next month as your inauguration day. The good news is that you didn't have to go through an election. Do the homework. Select the new vendor or the new product line, and make that part of your company. Decide on the new computer system, redo your showroom and train your staff.

A tough economy means that vendors will cut deals with you to start new product areas. Many great employees are waiting to be hired.

Your employees will work harder with a defined plan, with a goal that they know will help the company, which helps their job security and growth. Change is all we are hearing on the news. It is a unique time for every business owner to create and implement changes for the betterment of all.

Tough Times---Tough Decisions

Yes, you are going to reduce your workforce. Maybe you already have; maybe you may need to do more. My consulting partner, Stan Lane, and I had an interesting conversation about which is better: laying off 10% of the work force or keeping everybody and reducing everyone’s hours or wages by 10%. Here are parts of our conversation to help you decide which path best fits your business.

Some of the thoughts we agreed on:

If you feel that 15% or more of your labor dollars needs to be eliminated, go with actual layoffs, not reductions in wages or hours.

Check your employee manual or labor contract. That will usually explain the layoff procedure you must use. I hope that it gives you the right to lay off based on employee review results, rather than on strict seniority. (If you are on seniority, change this for the next edition of your employee manual, which should be ASAP.) Look at your reviews and layoff your weakest workers, the ones that haven’t learned more than one skill, or the ones that seem to miss the most amount of time. Again, be sure these occasions are well documented within your employee review system. (If you are not doing employee reviews, you are not going to have a successful glass company.)

Maybe you don’t even need a layoff, but you have the chance to clean house of your late-showers and quality-impaired workers. Even if you layoff the bottom 5%, wait two months and rehire, with the number of people unemployed in the US (over 7%), there are a lot of very good people looking for jobs. Trading up and improving your workforce should be a main topic for you to be undertaking right now.

Also, don’t implement a hiring freeze by formal announcement. Just stop hiring until a good applicant comes in the door. There are millions of people out of work and many of them are excellent employees. If you want to trade up, don’t be blocked by your own rules about hiring freezes.

So, Stan feels it is better to reduce wages and/or hours by 10%, rather than to lay off 10% of your workforce.

Stan's points:

• Keep your entire workforce so when you get busy you can easily expand hours. You have your whole work force there without having to hire and train rookies.
• You maintain morale by keeping all people working.
• You don’t take the risk of laying off good people, who would go to your competitor.
• By spreading the pain across all workers, reducing wages by 5%, Stan feels all people will work harder to improve the company. If workers feel that the “other guy” will have to pay the piper with a layoff, they won’t work as hard.

My points are:

• You clean out the weak workers and when you go to rehire, plan on hiring better workers.
• Do the layoff and be done with it. You have 5% of the staff out, but the other 95% are there at full wages, working hard to avoid the next (hopefully not) layoff. In the ‘reduce wages plan’, 100% of the company is unhappy with wage cuts. In the layoff plan, 95% are happy they have their jobs.
• Just about every company, anywhere, can survive very well with a 5-10% staff cut. It will make you sharper to reduce by this amount.

Whichever plan you feel is right for you, there is no sense waiting. The economy is not going to turn positive for at least six months. Hoping that if you wait one more week, you won’t have to do anything is foolish.

Which ever you plan to do, plan to do it once. Do all layoffs or repricing of workers at one time. If you lay off five people today and next month five more, everyone will be wondering what’s next instead of doing glass work. Go as far as you feel you’ll need to cover your employment picture for at least six months.

On one hand, you will feel bad for the employees that you laid off or reduced their hours. On the other hand, if you don't take action, you may be responsible to the entire work force if your company sinks.

These are not easy times to be an owner. Remember--this is what you signed up for by starting your business.

Saving Marketing Dollars in Tough Times

No one is happy with the economy. If someone says they are happy, ask them to share what they are drinking. Every glass business is looking to control costs, but if you cut advertising you will get less business. If you stop promoting your business, you will get less customers. Let's look at some ways to cut marketing costs without cutting out customers.

Here are some tips to help advertising. The most important trick to advertising is frequency, not size. If you have a big ad in the local paper once a month, place smaller ads weekly at the same or lower costs. If you have multiple ads in telephone books, again reduce size. You are better off with a small add in 20 listings, rather than a large ad in 10 listings. Place one large ad under glass, and reference that page in your small ads in the other sections.

Yellow pages charge a large premium for color...drop that and you will still have the same number of eyeballs looking at your ads. If you have simple clear graphics and easy to read copy you will be seen by your potential customers. Newspapers also charge a premium for color. Drop that back to black and white for savings.

If the yellow pages of newspaper needs encouragement to help you, offer them a contract for a year or two at the new smaller size. Newspapers are hurting, and even a smaller ad, guaranteed for a period of time is better for them than the large random ad.

Look at your marketing dollars. Are you in only one area. Spread out these dollars. Go to a trade show in your area, send out PR releases on your firm, make a donation to a local Church or Temple and you will be getting free advertising if your events are interesting enough.

Call your local radio station and offer to do a 15 minute radio show on handyman hints. Ask you newspaper if they need an expert to answer questions about glass and construction. Get your name out there--there is no better paid advertising you can get.


Never send a half empty envelope. If you mail an invoice or a statement, include a flyer about your company. Maybe a brochure from your shower door supplier, or a fact sheet about low-e will always enhance any mailing.

The best customer to advertise to is the one standing in your showroom, maybe waiting for a piece of glass for a picture frame, or a windshield installation. Place simple signs around your showroom saying things like: "We install new windows in homes and business", "Ask us about energy-savings glass", or "Drafty in your house? We fix that with energy efficient windows and glass!"


Go to the science teacher at the local high school and ask if you can put on a demonstration about low-e glass. One of the kids in the class will tell their parents, and you will get an order!!


When times are tough, coupons tend to be attractive to many customers. Print one that says "10% off all glass work up to $1000" Spread these around at shopping centers, in windshields all around town, and maybe as an ad in the local paper.


We're going to close with this thought. Let's say the economy is down 10%, that means that generally 90% of the business is still there. Your job is to make sure your competitor goes down 80% and you hold your own level.

















Stop buying all the give-aways for your insurance brokers and contractors. Unless you have the biggest and best calendar, you are not going to get on the wall. You pen will just be tossed on the desk,with twenty other pens and pencils your customer gets. Now, you may feel that since everyone else is stopping this, you will be the only one left. Don't think this! Be the smart one an stop first!







You still want to do something special to get noticed by your customers? Tie into the current times, and make a donation to an appropriate charity. Be sure to send a press release to your local papers, including a picture of you hand-delivering a check to the local office of the charity. Send a copy of a newspaper article to each customer with a note saying that you spent their calendar money to help homeless people stay warm. My prediction is you will feel better about yourself, and your customers will be proud to know you.







Are you advertising on Radio or TV? the most important part of media advertising is to have well written and well produced commercials. You are waisting your money if you write simple copy and have it read over the air.



Spend a little less on air-time and little more on production costs; you will increase name recognition and customer response. A well produced thirty second spot is cheaper that a lousy sixty second spot.

New Year's Wishes and Resolutions

MEMO

TO: Everyone in Glassland

From: The Resolution Keeper

Subject: New Year's Wishes and Resolutions--January 09

The High Council has decided on the regulations for resolutions and wishes this year from resolvers involved in the glass industry. Please follow these guidelines:

• Business will not come in the door just because you ask the Council
• The energy surcharge will not, repeat not, disappear, not matter how much you beg
• For every five pounds you resolve to lose, the council will grant a one percent increase in sales
• We will honor all requests to reduce telephone sales calls for office supplies
• Under no circumstances can we sink any ships coming to the US from China
• We will consider your requests, on a case-by-case basis, for improvements in your accounts receivables, provided you get all credits issued on a timely basis
• No, we will not allow the invention of a portable tempering oven to be sold by CRL for under $10,000
• Lyle, stop asking for more publicity for Chicago...you got enough this year already
• We will randomly award ten shops around the country a free parking pass, making all parking tickets disappear without paying...apply now for one of the ten passes
• If you resolve to quit smoking, and do so for three months, you will be given a new source of tempered glass that does know how to affix the proper labels to glass
• Sorry, the Council has no authority to meddle into either the Cubs or the Mets
• We do have the power to intervene in your worker's comp rates, but you really have to offer something great in your resolution
• We cannot move the National Glass Show to a northern city so you don't have to travel...are you crazy?
• Even if you hold your breath until you turn blue, we cannot stop the consolidation in the auto glass industry...we tried already, but we were too late
• If you succeed in your resolution not to swear at work for two months, you will get the Macy's contract at the mall
• If you ask nicely, Bill in the shipping department will retire in June
• If enough of you ask for the same thing, we will do it...after all, look what we did for gas prices in the last couple of months
• For Sam in Springfield, we cannot get you a ticket to the inauguration...you voted for the other guy anyway
• Dear Deb, yes it is worth it

It's All About Power--From Chicago to New Hampshire

Just as the news about Governor Greedy was breaking, I had the privilege of teaching a seminar at the Midwest Glass Show in Chicago. During dinner with some very informed Chicago glaziers, I learned that political power in Chicago is held by a few politicians who dictate who gets elected to what position, on what platform. Governor Greedy, who previously had the support of the power brokers, was going out on his own, trying to gain his own power spot and earn his life's fortune by selling Mr. Obama's Senatorial seat.

Governor Greedy embarrassed every Chicago resident, every Illinois family, all Democrats around the country, and the entire United States political system. All for the sake of getting more power and more money.


There were thousands of hard-working glaziers and owners at the Chicago show-- people who work hard to run their businesses. They earn their power by building a business, serving customers and helping their co-workers. By participating in the trade show and the teaching seminars, they gave credence to the old aphorism: "Knowledge is Power". By learning more about glass, metal and running a business, they will be back at their shops with greater power to earn and skills to share.

So, in Chicago I saw the worst of power grabbing and the best of power sharing.

Now to power in New Hampshire. We have power in selecting the Presidential candidates with our early primary. That's it. I arrived home from Chicago into a freak snow and ice storm that left hundreds of thousands of homes without power (including mine). Since Thursday, my entire town, and many towns around, have no electrical power. No lights, no heat with wood stoves or fireplaces, no water to those with wells.

The real power is to the people who sell generators, which were sold out in the first few minutes of the storm. Our home has a small generator built in, so we have heat about twelve hours a day, limited lighting and water. When we turn off the generator at night, we have candles and flashlights, fireplaces and blankets.

It makes me realize that power is important, I wish I had some, and I would sell Governor Greedy down the river to gain his power at my house.

Hiring a Private Investigator to Work on Workers Comp Fraud

Joe the Glazier filed his workers comp claim four months ago. You are sure he is working somewhere off the books, and your insurance carrier says they cannot do further investigation. You decide to take matters into your own hands and hire the retired cops from Law & Order and CSI. You know for sure that Joe is committing fraud, and you will prove it...maybe.

Workers comp fraud is when a person spends more time on comp than is needed, or incurs more medical costs than needed. The medical costs are by far the more expensive of the two options. It is out of the realm of a basic glass company to prove that a medical provider is acting fraudulently.

You can prove that Joe is stealing time, and that would bring his medical bills under the microscope as well.

You are 99% sure Joe is a fraudster. You call your insurance carrier's fraud unit, and after three days of calling, they finally tell you that they can not take on this case. It costs about $5,000 a week for a covert investigation. If Joe the Glazier is collecting $600 a week in comp, the insurance company just will not commit the resources. On-the-other hand, if Joe is putting in thousands of dollars of medical bills as well as he weekly stipend, then they will go after him. More often then not, unless Joe is part of a huge area-wide fraud, he will be ignored by the carrier.

You want to hire a PI, a private investigator. Your personal attorney is the best resource for a couple of names of investigators. Your attorney will try to talk you out of this...it is usually not a good investment, but you don't care. The principal of the fraud has you angry. You can also check the yellow pages or the Internet. Forget what you see on TV. Most investigators are retired cops and will only act legitimately.

Treat this as if you are shopping for a vendor. Interview one or two people and then make a business decision on which can help your glass company. When you do hire one, expect to pay between $500 and $1000 a day, plus expenses. Don't think you will go for one day's bill and catch someone in fraud. It takes more than one observation to make a judge believe there is fraud. You have to show that Joe is working every day, at the task he did for you, but for someone else. Joe can, and will say, that if you saw him for one day, that he was just helping a friend, and testing how strong he is so he can come back to work for you.

A good investigator will explain this up front, explaining why they need a five-day retainer. Give the investigator as much info as you have, don't tie his/her hands with weak information. If you can't give the investigator a good starting point, your bill will run-up and choke you. A good investigator will try following Joe at different times. Early morning one day; afternoon and evening the next. Joe may be working part-time, two days a week, and you start investigating on his off-days. The investigator should know what type of video and other evidence to get. The PI should give you a daily short report as to his status, and a weekly complete report. It does not make sense to go longer than a week.

80% of investigations bring in no results. This is what I was told when we hired an investigator on one case. And we fell into the 80%, with an expensive thud.

But let's be optimistic...you do get results that show Joe is working. Now, what do you do? You call the insurance company and they yawn. The legal costs to bring this to their attorney to then go to court, are again, thousands more than the $600 a week Joe is getting. They can't be bothered. You now call the local district attorney, saying you have proof of this fraud. If you catch them on a day when white-collar crime is being looked at, you may get a case. It depends on the political climate in your area...are there more violent cases that need to be worked on?

You go through all this, and hit three different brick walls. Is it worth it?

That's up to you and your budget. If you are sure Joe is committing fraud, keep going at it.

You found no evidence of fraud, or you did, and hit the brick wall. It is now that you have the investigator let himself be seen. Throw a little panic into Joe. You are sure Joe is guilty, and that you won't get anywhere with it in the system, so go for it. Scare Joe, and let him know he is being followed. The investigator won't say who hired him, the insurance company or you, so let Joe guess. But he will tell his friends and co-workers, that he was investigated and they couldn't find anything about him because he was just too smart. His bragging will scare the next ten people not to try fraud. Every one on comp will know this real soon, and you will see a reduction in long-term cases.