What Would You Have Done
Thomas Barry – ‘Tom’ has long taken to heart the fortuitous occasions and high value of being prepared and focused when the opportunity to be considered, called upon, and compete align. This was a necessary mindset fostered and forged when seeking to make the youth baseball, soccer, hockey, and chess tournament teams while growing up in both Massachusetts & New Jersey having moved several times. He makes his first blog post for Learning Without Scars with, “What Would You Have Done?”
Attending High School in both MA & NJ, illuminated the precept that demonstrating your value was only evidenced by your repeatedly proven capacity to generate stellar results within those brief moments of timely relevance. As does earning a spot on the Soccer & Baseball Teams within new schools with 5,000+ students. The application of this internalized set of motivators has proved useful and beneficial as it has translated into a long list of both individual and corporate leadership business awards. Recognitions, bestowed for sales, marketing, share of market, and comprehensive KPI metric performances repeatedly recognized by world leading OEMs, heavy equipment stocking distribution businesses, as well as governments on Local, State, and Federal levels; for National, North American, and Global Sales and Export performances.
A Graduate of the University of California, Berkeley, there… Tom applied for and was accepted into a highly selective Independent Studies degree program within the College of Letters & Science while also a member of the PAC10 Cal Baseball Team. His focus was professional sales and as such was permitted to take coursework from all 14 UCB campus colleges including 2 years of MBA studies in the Principles of Corporate Finance, Engineering, Business Law, Accounting, Statistics, Computer Science, Political Economies of Industrialized Nations, Sentential Calculus, and the completion of a culminating Senior Thesis which earned an ‘A’.
Tom and his wife Eileen met in High School and are now married 36 years and reside in Columbus, OH. Their two adult sons were very active in Travel Soccer & Tennis which initiated a great band of parents that routinely gather for the next Ohio State Buckeye Football or Columbus Crew Soccer Games!
You can find Tom on LinkedIn.
A true-life heavy construction equipment sales presentation story shares insight of contrasting styles of differentiating value propositions.
Several of the competing OEM distributorships’ senior leadership emerged from behind their desks to present a product of three (3+) of the world’s leading competitive OEMs to my unit.
Unique styles and approaches collided in a high-profile opportunity wherein a purchase of a 147,000 lbs. excavator is on the table to be selected by the winner ‘Bill’ of a State Government low bid public service energy project!
Preamble: Within a typical sales career launch… many representatives will start off at a level of skillset capacity descriptively referred to that of Unconscious Incompetence. If you’re slow to embrace and internalize key precepts available from training… you’ll likely be lacking at your needed industry skills, and you will often not even know it or know why. Nevertheless, with some initiative and persistent engagement, you’ll advance to a level of Conscious Incompetence wherein you’ll perform under par, and you’ll be aware that you’re not as good or as effective as desired from yourself and others. Self-awareness is needed!
As you practice, drill, and rehearse your early skillset, pivotal personality traits, product knowledge, and practiced presentation choice of words nuances, you’ll start to notice and appreciate marked strides towards improvement. The results will often equate to some level of competence along with periodic moments of success that fuel an onwards and upwards spirit to endeavor towards continuous improvement!
Continue to hone your skills and you’ll reach a level of Conscious Competence…You’ll be prepared and skilled and self-aware of such. Down the road…staying the course and with a mind to continuous improvement… and striving for excellence… the phase of your career wherein you attain Unconscious Competence awaits. Therein is the stage at which you can earn self-satisfaction and rewarding recognition levels familiar to many that enter the arenas of sports. More importantly, you’ll find that the professional field of sales is a lot of fun and full of gratifying moments of satisfaction of helping to uniquely solve customers’ problems! The journey of taking a Brand Mark to another level of Brand __________!
This capacity for professional growth and career satisfaction will be a function of your capacity to act with sincerity, to do more for your customers than anybody else is willing to wield to deliver, so that they and their opportunities can be as successful as possible!
As I waited in the entry foyer… of an existing customer’s visitor’s chair that morning, I was greeted by the President’s Office Manager, whom I knew quite well of this fast-growing construction firm; on the matter of a recently secured heavily competitive bid for a large public service energy project. The very familiar banter which was commensurate between us was suspended as the President emerged from his office and spoke with an energetic/pleasant business tenor…
“Busy day Tom, I have no time for pleasantries… I’d like to meet with you today…I’ve got a meeting set already to meet with (OEM Distributor Competitor #1) in 15 minutes from now – this morning… who, by the way, isn’t happy that you sold me the last 20 machines I’ve purchased. They are embarrassed and have assured me that their final pricing and enthusiasm expressed is going to reflect that point to say the least. I’m also meeting with (OEM Distributor Competitor #2 & #3) this afternoon as they each related to me this order is going to be theirs…that should be interesting. Do you want to meet me before I meet with (OEM Distributor Competitor #2 & or #3)?”
I replied, thank you for asking but no thank you Bill, … I’ll be pleased to take the last appointment of the day. I’ll catch up with you at 5:00PM, if that works, as I doubt that my perspective and comments will need to take very long…and I can answer any questions you may have that stemmed from your prior meetings.
Bill replied: “OK… Sounds good Tom, see you then.”
Upon my return, I arrived ten minutes early and soon was summoned to sit across from the Contractors’ President’s desk to relate the following with a high degree of matter-of-fact confidence. “Bill, as always thank you for your time to speak with you and for the opportunity to be compared so that our value can be identified – as always that is highly appreciated! Bill as you are keenly aware… you’re buying a tool for a job. The tool you need for this job is very soon to start am I correct? Bill replied Yes!
I added, the importance of this job is enormous. Everyone will be watching, and this will likely be the most important job in the history of your company…am I correct in saying that? Bill replied ‘Yes’! If you would be so kind Bill, please share just a bit about your project… is it the same as what I’ve heard (he knew I assisted with his bidding team of engineers)? Indeed, it was the same.
I summarized and related OK Bill, thank you for that feedback as it is largely the same specs as I had recalled from my prior meeting notes. {As I was about to begin my presentation comments, Bill interrupted me and stated} …
“Tom your proposal to me is at $675,000 for your excavator package vs. Competitor #1 at $545,000 and Competitor #2 is at $475,000 and Competitor #3 is at $425,000 with an additional caveat of “Make me an Offer” comment from their V.P. of Sales… who related that the factory is going to make sure that this deal is theirs! (Bill added) … ‘that has turned my head…Tom, you know I like you… so let’s keep this conversation about meat and potatoes because that is at least $250,000 we’re talking about.”
Thank you for that feedback, Bill… much appreciated. I took the liberty to stop by the facilities of Competitor #2 & #3 today. I drove through their equipment inventory yards as if I owned the place and despite some of the looks, I got, I took these pictures of their machinery, buckets, and excavator arm inventory positions on their respective grounds as I wanted to assess their capacity to support you considering the difficulty and importance of this project. We’re talking about very hard shale & dolomite seams that cannot be blasted as I recall from conversations with your estimators (I referred to them by names)!
Competitors #2 & #3 have just one bucket each in inventory… and that is only the ones already mounted onto their only inventoried excavator unit they are quoting you. They both have 65” soil bailing buckets installed – not matched for the early job phases. You’re going to need quick disconnects on the bucket couplers with a capacity to switch between at least 3 buckets so that you can maximize your productivity and reduce the amount of stone that will support the trench with the appropriate amount of stone bedding and backfill. You will likely be entertaining the prospect of even taking a 2nd longer arm for the excavation effort as this job is pulling triple boxes for safety requirements as you near the end. This shale you are excavating at the bottom of the trench will require a rock bucket that is a $55,000 item. Such bucket specs take 6 weeks to order and arrive if all goes well.
As to Competitor #2 & #3, offering… forget about the very close machinery specifications on brochures and the bucket issues which are significant…and the critical and hoped for parts and service support desired for a limited number of units present in the region, as compared to what you are already aware of and confident of with our support. Nobody knows Competitors #2 & #3 offer better than the guys who pitched you on it earlier today. As to Competitor #3, do you really want to consider owning a machine that costs over $400,000 wherein your opportunity to sell it when you’re done with this project has to include the line “Make me an Offer”? Bill, Competitor #2, hasn’t sold a single 75,000 lbs. or larger excavator in this State since the undercarriage wore out on their 100,000 lbs. excavator in 1,800 hours in the next county over which required the purchase of a new $45,000 undercarriage for the project to be completed. This isn’t a dozer working in high-speed reverse in sand and should never see that kind of wear. Their undercarriage and Triple Grouser Shoe specs are not only thinner, the material of their cast pins, bushings and pads are suspect at best. I have the name and number for that owner who would be only too happy to take your call to share that experience and his ‘lessons learned’ story.
As to Competitor #1, knowing they would be touting the glory of their Market Resale Value… I shared ‘keep in mind that 70 Units of this size excavator sold in our state over last decade’. ‘We have sold 56 of them…they have sold 14, and Competitors #2 & #3 haven’t sold any. Trade in Value – the opportunity to take it in trade on the next tool that you are required to have as this job concludes is of enormous relevance and importance. On that note we’re clearly a better designed machine and value as Competitor #1 doesn’t measure up and that is why we have sold 56 out of the last 70 units in this size class and 56 out of the last most recent 59 units sold. Again, you’re buying a tool for a specific job!’
Moreover, Resale Values for used equipment reflect all buyers’ preferences for new if they could afford them. For all such reasons our offer is the preferred machine of an informed buyer. Our confidence in keeping them in our fleet and supporting them includes our buying them as or if they make it to an auction. Our preference is to take them in trade… which would also position you to save on the taxes when buying new!
Just as you have purchased the last 20 machines from us, Bill, this next unit is the right decision… if and when you decide the unit is surplus to your next project needs and seek to pick up the next set of tools best matched, you will know that we have every interest to get that unit back for the right price that reflects the proven and established demand for that product in this State. The breadth of our product offering is well positioned to support your future needs. Note: I have 54 buckets in inventory for this size excavator along with that specialty rock bucket we discussed, numerous arm length choices, along with 16 of these excavator units in stock and in my rental fleet.
{NOTE: In what follows below is referred to as “An Alternate of Choice Closing Question}:
‘Bill, I know you have a quick start date for this project, so do you want the excavator delivered to the site by this Friday morning or afternoon or is Monday soon enough and which of the three buckets do you prefer to have mounted to start the job?’ (upon which time I shut my mouth and didn’t utter a word for the next 7 seconds of room silence) … Bill paused, sat back in his chair shook his head side to side and smiled, & then nodded… he stated “Wow… Tom! I did not think I would be saying this today… Monday morning… and the Rock Bucket so to have a wow factor at the Groundbreaking – there is going to be some Press & Dignitaries’ there” – he just purchased a $675,000 excavation package!
The satisfaction of a favorable outcome attained is a function of earning the customers endorsement of your opportunity to be compared in the process of addressing their needs. Gently leading that customer to identify and navigate the merit of your differentiating value proposition to a new and improved reality of added value – The Life-Cycle-Cost assessments of both ownership and time tested/trusted business relationships of Brand Insistence!
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Struggling to Find the Right Employees for Your Dealership?
Struggling to Find the Right Employees for Your Dealership?
Guest writer John Dowling has a timely blog post this week. We are always hearing about the difficulties employers face when trying to find quality employees. Read “Struggling to Find the Right Employees for Your Dealership?” to learn more.
Are Recruiting Firms a Good Investment? Well, it depends on the firm. Do they have an excellent reputation? Are they 5-star rated? Do they have a guarantee? Do they know your industry? Do they embrace technology to drive efficiency in their process? If the answers are “yes” to all the above questions, then there is a good chance the recruiting firm will positively impact your ROI. A better question is, “Do I need a recruiting firm to be successful?” We could also ask, “Why should I use a recruiting firm to staff my dealership?”
It doesn’t matter what business book you read or what successful owner you talk with; they will always indicate that what drove their success was their people: the company’s human resources. Having the right people is more important than having the right product or business plan. People drive your business’ success. The right people and culture fit is paramount to your dealership’s success. It doesn’t matter if a candidate is qualified, if they are not a good culture fit, they can harm your company.
I worked at a dealership that had explosive growth. When I started, we were about 110 employees; in less than six years, we were over 220. That’s adding over 100 employees, and that does not include recruiting for turnover. A couple of years into it, we realized we needed a full-time HR manager, and I was tasked, on top of all my other responsibilities, to recruit and hire the HR manager. I had taken some HR classes for my degree and was familiar with HR, but I had to do more research to determine precisely what qualities and skill sets are required for a successful HR manager. I posted the job on an online job board. I continued reading articles and HR blogs and reaching out to people I knew in the industry, trying to prepare myself to source, screen, and hire an HR manager.
Well, I was successful, at least at acquiring many resumes. I remember one day, I had over 60 resumes that I had to read and decide if I should set up a phone call or not. About halfway through the stack, I started having resume fatigue. Do you know when all the resumes start looking the same, and you don’t even remember the name of the person you just read? It all just becomes a blur. For the sake of time, I began looking for things to disqualify them versus asking whether they were qualified and would be a good fit for our company. I am sure I passed over some good candidates.
A good friend and successful businessman recommended a recruiting firm to find us an HR manager. After convincing the dealer’s owner that the placement fees would be an investment in our business, they sourced a great candidate within budget. We hired him, and he helped us get to the next level. The HR manager brought years of terrific value to the company, especially compared to the placement fee we had to pay the recruiting firm. It was some of the best money we ever invested in the company.
Recruiting is a full-time job; you will get sub-par results if you try to do it part-time. One of the most significant values of using a recruiting firm is freeing up capacity. Your managers only have so much mental capacity. When asking a busy sales manager, branch manager, or service manager to recruit employees, something will slip off their plate, usually customer service and profitability. It would be difficult to calculate the exact loss of potential income and customer satisfaction because the manager focuses on recruiting rather than their primary responsibility.
You may say, “We have an HR manager,” or “We have a full-time recruiting staff.” That might be true, but Jay Lucas, President of JSA, always says, “Recruiting is like a pineapple.” HR managers are juggling compliance, compensation, and employee satisfaction, similar-sized fruit. Then the company president throws in a pineapple, recruiting; it just doesn’t fit. What usually ends up happening is that the pineapple hits the ground, or the HR manager tries to juggle the pineapple, and everything else stops. Recruiting is a full-time job, and a company should always continue recruiting. Would your sales associates be recruiting or working in the shop? No, the sales associates must keep their sales activity funnels full, and I say the same for recruiting: you must keep the recruiting activity funnel full. There is not an on/off switch. Recruiting is a process.
I know some companies have a whole department of full-time recruiters. If you’re large enough, this may be a workable model. However, I would challenge you to determine your actual payroll cost, benefits, oversite, and additional office space for a service that could be outsourced and performed more efficiently. We must focus on what we’re good at.
Heavy equipment dealerships are skilled at selling and servicing equipment. However, recruiting employees for an equipment dealership is different from selling and servicing equipment. Focus on what you’re good at, managing a heavy equipment dealership. Partner with a trusted recruiting firm that specializes in recruiting top talent for the heavy equipment industry. This will be a win-win scenario that will return an excellent ROI for all parties involved.
At Jordan-Sitter Associates, we have an excellent reputation and literally hundreds of five-star reviews to prove it. We have been in the heavy equipment industry since 1978, and we are so confident that we can find top talent that we have a money-back guarantee. We have dedicated recruiters who specialize in different subsets of our industry, be it Dealer, OEM, Sales, Product Support, Operations, or Technicians. Our sophisticated technology stack allows us to source passive job seekers, ensuring we deliver you a qualified candidate who is the “right fit” for your company! To learn more about JSA, visit our website at https://reputablerecruiting.com/.
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The CSIs in the Tire Shop #technogeek
The CSIs in the Tire Shop #technogeek
Our guest writer Bob Rutherford is back this week, along with a new hashtag (#technogeek), to talk technical about the CSIs in the Tire Shop.
At the last TMC meeting there was a lively discussion about the shock absorber and the role it plays in vehicle safety. As with most things trucking related, correct answers can be hard to come by. This is one example. The answer is totally dependent on what type of suspension system the shock has been incorporated into.
From the textbook* on the subject, here are the various categories of suspensions:
Leaf spring
Equalizer beam: leaf spring and solid rubber spring
Rubber block and torsion bar
Air spring: pneumatic – only or the combination of pneumatic/leaf spring
*Above from page 814 fifth edition Heavy Duty Truck Systems by Sean Bennett
This white paper is concerned with only the air spring only system at this time (in bold above). The reason for this is explained in detail on page 826 about the air spring only system:
“The primary disadvantage of the air spring is a ZERO ability to dampen suspension oscillations. For this reason, they use auxiliary dampening mechanisms such as shock absorbers.”
Further research needs to be conducted to draw conclusions about the role of the shock in the other suspension systems listed above. One thing that is known for sure, a monoleaf spring design is very dependent on a working shock absorber as opposed to the multi-leaf spring packs have a self-damping capacity. It looks like the monoleaf design is gaining in popularity for the advertised weight savings of up to eighty-five pounds in some applications.
The more leaf springs in a spring pack the more self-damping against suspension oscillation the system will have. This reduces the need for a working shock absorber in this type of system.
My conclusion is that on the air spring (AKA air ride) system the lowly shock has been crowned the King of Safety and needs to be recognized as such by all concerned with safety. A properly functioning shock can make the difference between a tire having the proper footprint or merely only having the equivalent of a toe print on the pavement.
From a braking standpoint, how good is the braking system if the tires are rebounding off the pavement because the shock is worn-out? The shock is the key to keeping the tires on the road.
Based on comments received on my prior published works I know many in the trucking industry think a shock, even on an air ride system, is not a key safety component. I am sure this is because in their mind’s eye they see an 80,000 GVW just bouncing down the interstate without a care in the world. I don’t look at that scenario; I see the last thirty seconds of an accident where a distracted driver cuts off the big rig and the driver is jamming on the brakes and turning the steering wheel with all the might the driver can muster. At that exact moment, the shocks had better be keeping the biggest and baddest tire footprint on the highway.
So why would a truck driver drive on bad shocks? As stated, when I quoted the list of suspension systems, if the truck driver and mechanics were used to a vehicle with a leaf spring suspension, maybe worn shocks were never an issue; and that could be a very big “were never an issue.”
In my research I have found that many tire dealers are not in the shock business and actually benefit in more tire sales when a customer brings back a cupping tire that is not covered under warranty because of a bad shock, other suspension problem, or an out-of-balance wheel end assembly.
I have found those tire shops that see the future are using the ABC’S system (explained below) for wheel end management and so are fighting an uphill battle.
Many drivers see a conversation in a tire shop with a CSI tone as the tire shop attempting to pull off a dreaded up sell of an unnecessary shock absorber just to pad the bill.
Explaining the ABC’S and the CSI conversational tone with the truck owner
It should be no mystery to anyone who has watched TV during this decade that CSI is short for Crime Scene Investigators. The ABC’S will be explained next.
Michelin Tire Company has been distributing tire wear analysis charts to tire shops for years. The charts are titled “The Usual Suspects.” I assume (and hope to verify someday) that someone in the Michelin marketing department saw the relationship between a tire that is dead on arrival (DOA) that like the TV show, there are always certain suspects that the death of the tire can be pinned on.
The premise of the movie is that every time there was a crime they would round up the usual suspects, perform a crime scene investigation and figure out who done it.
It is to the advantage of tire manufacturers to showcase the usual suspects as a troubleshooting tool for several reasons. First, they don’t have to warrant the tire and second, they might solve the mystery and have a happy customer in the future.
I named the usual suspects the ABC’S gang. It is up to someone in the tire shop to look at the tire corpse and figure out who done it. The simple version of the gang members:
It is my belief that every tire shop should have a whiteboard near the usual suspects’ chart and use it to explain what happened to the tire.
I think every tire shop should have a whiteboard to help communicate with the driver about the wheel end system. The whiteboard could start out like the illustration, then be erased, to explain the Usual Suspects chart as it relates to the tire that arrived dead on arrival (DOA).
As far as explaining that a shock needs to be replaced for safety reasons, the following steps need to be considered.
First – Know how to identify an air ride suspension that needs good shocks.
Second – Every new tire that was replaced because it was worn-out should have a new shock, again, depending on the suspension system.
Third – Further research into the cupping issue needs to be done. I think this can be a big tipoff that the shock was not replaced or there is some other unsafe condition, such as an out-of-balance wheel end that is not allowing the tire to have the proper footprint as it rotates down the highway.
Fourth – I believe once the word is out, most tire shops will be interested in implementing the ABC’S and CSI system for their customers; the problem will solve itself.
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Redefining Excellence – Beyond Firefighting
Redefining Excellence – Beyond Firefighting
Guest writer Sara Hanks highlights the importance of existing beyond the emergency situation in “Redefining Excellence – Beyond Firefighting.”
In today’s business environment, the spotlight often shines brightest on those who extinguish fires rather than those who prevent fires from igniting. This dynamic has increasingly highlighted the misalignment within companies regarding quality and continuous improvement principles. While saving the day deserves recognition, the diligence of preventing problems goes unrecognized. Over time the motivation to be proactive and focus on process improvement diminishes. This trend undermines the core values of continuous improvement and quality management, but also creates long-term risks to operational excellence and customer satisfaction. When competition is low, this is exponentially worse.
The recent events with United Airlines suggest that companies may have lost their way when it comes to quality and operational excellence. A quick Google Search, or CoPilot prompt can show that 3 incidents occurred recently, which I find rather alarming. If the aviation industry, which is notorious for high regulation, has visible mistakes, what is the culture like in other companies?
Historical shifts in quality and operational excellence often arise from moments of intense challenge and competition. A classic example is the U.S. automotive industry’s response to the introduction of superior-quality Japanese vehicles in the latter half of the 20th century. American companies to adopted Lean Six Sigma and other continuous improvement methodologies that emphasized defect reduction, efficiency, and customer satisfaction. This begs the question: Are we waiting for another moment to realign our priorities towards prevention and quality, or are we already in the thick of challenge, driven by a post-covid rut.
Regardless, it’s imperative for organizations to adopt a culture of continuous improvement. Here are some recommendations for individuals and organizations looking to instigate meaningful change:
Establish a Rewards System for Prevention
Create a rewards system that equally acknowledges both the resolution of existing problems and the identification and prevention of potential issues before they arise. As part of regular operating rhythms and meetings, highlight success stories related to prevention, or good corrective actions that prevent recurrence. Share stories and case studies within the organization to provide examples for people to learn from, and more importantly give credit to those who implemented the projects.
Build Comprehensive Training Programs
Training programs should include basic overview training for all employees in the company, and in-depth measures that include application. Here are a couple suggested training topics:
Create a Mentoring Program for Projects
Create a mentoring program that pairs less experienced employees with seasoned veterans to foster a culture of learning, sharing, and continuous improvement. If the expertise is not available within your company, hire a consultant to develop key talent internally, then expand. Promote cross-functional teams to work on improvement projects, facilitating knowledge transfer and a broader understanding of the business processes.
Set Ambitious Continuous Improvement Goals
Tell me how you will measure me, and then I will tell you how I will behave. If you measure me in an illogical way, don’t complain about illogical behavior. — Eli Goldratt
It’s amazing when people’s job performance is tied to a metric, actions are taken to meet the goal. Here are a few examples of continuous improvement goals:
Leadership Commitment and Involvement
Conduct regular reviews of continuous improvement initiatives, adjusting based on results and feedback to ensure alignment with overall business objectives. Ensure that leadership actively participates in and supports continuous improvement efforts, setting the tone for the entire organization. Educate the leaders on asking questions that prompt investigation and plans to prevent recurrence, as opposed to demanding explanations or expecting action before root cause is understood.
By embracing these strategies, companies can shift their cultures towards valuing and rewarding the crucial work of preventing problems before they occur, thereby laying the foundation for sustained excellence and competitiveness.
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Ho’oponopono
Ho’oponopono
Learning Without Scars’ founder, Ron Slee, is back today with a blog post on Ho’oponopono, the Hawaiian Principle of 100% Responsibility.
Seneca, one of the most important Roman Stoic philosophers, said “Luck is what happens when preparation comes across opportunity. Thomas Edison said his work was 90% perspiration and 10% inspiration. Louis Pasteur among many others felt the same way.
In every case I suggest it is much more important to be ready when opportunity comes to you more than anything else. That leads me to thinking about our lives and our work. How much of our lives is under our control? As someone who is known to be a control freak this is a nasty question.
In Hawaii we are a society that is further away from any other on the planet. It is 2500 miles to the nearest population center of any kind. Our culture has a lot of different influences. From Asia, the Americas, Oceania obviously. But there are others that cause us to wonder. It seems that using language as our tool on determining origins the Hawaiian people originally came from the middle east. That too follows ancient historical thinking.
But let us go back to Ho’opononpono and one of its foundations which is the principle of 100% responsibility. The kahunas, the priests of our culture, state that each human being is 100% responsible for their own reality. That it is useless to blame other people. We are not victims unless we choose to be victims.
Ho’opononpono says that if you don’t like your reality then you must change it. Desmond Tutu, the archbishop for South Africa had a saying that I go back to often. “If it is to be it is up to me.” In other words, we control our own destiny.
That brings me to Learning Without Scars and our purpose for being. We are here to help people identify their individual potential both personally and professionally. We are here to open your Ho’oponopono and let you take control of your destiny, of your future.
There is a problem with this line of thinking though, isn’t there?
This is a challenging work. Learning and developing and growing as a person are demanding work. For most of us it is too much work.
Let me digress for a moment. Dr Gail Matthews, of the Dominican University of California conducted a major study of “The Impact of Commitment, Accountability and Written Goals on Goal Achievement.” She found that writing down our goals increases the percentage of achieving those goals in a major way. It seems that psychologically when we write down our goals it is as though we are signing a contract with ourselves. So, let’s provide you with a simple little exercise now. Choose an area of your life in which you would like to correct something. Select from this list:
Now write down several phrases with the first thing that comes to your mind about one of the above list.
I would like you to select Learning and Personal Growth.
Don’t worry about the order. Next look at what you have written and create at most three specific goals or actions. They must be positive. Put that piece of paper on your refrigerator.
The Ho’oponopono means to correct an error. That makes sense, doesn’t it? Given that we are 100% responsible for our life if there is something we are unhappy with we must correct the mistake that got us to where we are now. However, that means that we must accept the reality that WE are 100% responsible for it.
This is one of the most critical elements of this process. Until you accept, you’re responsible, it will be difficult for you to change. Deep down everything depends on us and we must stop making excuses or blaming circumstances and get to change our lives. Here comes something that I understand and believe in. From this point on it has nothing to do with being lucky. It becomes a personal choice.
One other observation please.
The easiest person in the world to lie to is your reflection in the mirror – AND – that is the last person in the world you should ever lie to.
We are never victims unless we allow ourselves to be victims. When I say this, I am speaking of our choices – not situations involving crime. Whatever your job is, your career, you can control your outcome. You can be open to learning. You can go back to school. You can ask for help. You can go to counselling. You have many opportunities. It is a matter of making a choice.
You can apply this principle of one hundred percent responsibility to all aspects of your life. Start with the premise that everything is created in your mind before it becomes reality. SO. Change the way you think and act. It will change your reality.
In Hawaii this is called “cleaning.” We will continue to repeat the same painful episodes and circumstances because they are all coming from our subconscious.
To overcome the subconscious, Hawaiian’s, use a string of four expressions: Forgive me, I’m sorry, I love you, Thank you. You must accept it is your responsibility and when you do you have to forgive yourself deep in your subconscious for the choices you have made that got you to where you are today.
Try it. You will be surprised. It works.
The Time is Now.
This blog was provoked by a book with the title “Maneki Neko” by Nobuo Suzuki. For me it is a follow up to the book Ikigai. This book covers the Japanese Secret of Good Luck and Happiness, it is a terrific read.
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Turning Off Warranty Losses
Turning Off Warranty Losses
Guest writer Christ Kohart is back this week with a continuation of his topic on warranties with his blog post, “Turning Off Warranty Losses.”
In our last discussion, we reviewed the cost (financial loss to our dealership) of replacing a simple hydraulic tube covered by an OEM standard new equipment warranty. We also discussed the importance of sharing our dealership’s value-add with our customers; that example was a small hypothetical of what a dealer’s service operations extend to support our customer base daily.
How do we properly allocate these write-offs without dumping them into a general cost bucket? Here are two ideas:
Simple Method: We can look at our warranty write-offs for the previous fiscal year and allocate a percentage as a line-item cost to each new whole goods sale during the upcoming fiscal year. While the cost recovery trails the expense by one year and is subject to market fluctuations (good vs. bad years), it is a starting point. In this example, let’s assume that our write-off account shows a net negative balance of $200,000 at the close of our current fiscal year. To fairly allocate this loss to our upcoming fiscal year, we can’t divide our forecast unit sales count by the $200K loss as it will unfairly allocate to lower-cost machines. For this example, we use our forecasted OEM whole goods cost (exclusive of rebates, allowances, freight, etc.) of $10,000,000. If we do some quick and simple math, adding 2% to the cost of each new machine we bring in during the year should net us out with a close to $0 warranty loss. This 2% becomes a line in your build spreadsheet, just like inbound freight, receiving, PDI, standard prep, etc. Beware: the downside to this simple method is that one specific large warranty hit during the year can skew the numbers and hurt your competitive position – you’ll have to carefully gut-check your results.
More Accurate Method: Consider allocating the warranty costs by OEM, model type, and, potentially, application. Depending on your dealership’s software, this can be relatively easy or complicated. Due to the limitations of the software platform deployed in my old dealership, this was an arduous exercise but well worth it once we began extracting meaningful data. While this will take some time to assemble, once the data model has been created, you should be able to run a routine to update your numbers regularly.
I’m going to limit the sample for our example, but this formula works for almost any size dealership:
High-level steps to make the data meaningful:
Run a detailed report and export it to any solution that can manipulate data, by OEM, of all whole goods sold by model class. You need this information to establish the quantity of each model class.
Run a detailed warranty report and export it using the same criteria. Ensure the report includes all costs and all recovery; this should include any additional policy or extraordinary cost reimbursements received from your OEMs.
Let’s review some of the information in this spreadsheet. We can quickly see what our average warranty loss per machine costs our dealership to support – we’ll discuss the lost profit potential on all those labor hours given away at cost in an upcoming blog. We can also see trends if the average loss varies yearly; in our example, they stayed close.
We now have data that is accurate by OEM and model class, we’ll discuss adding application as a factor in a future blog. It makes sense that a small skid steer will cost us much less in terms of warranty support than an excavator. This report would also highlight an outlier you would want to adjust manually; using the “simple method,” this would not stand out.
Run this model for your dealership – hopefully, the results are not a surprise when you review them, although they usually are. If you think the numbers are overstated, start with a percentage – even at 50% of the numbers presented above, our sample dealership will add approximately $421,000 to the bottom line in the upcoming fiscal year if you use a three-year average as your basis. While the numbers used have been kept low for this example, I hope they shed some light on the power of accurately tracking these costs.
Set up at least one revenue GL account (preferably by OEM and model class) to begin recording the offset to your warranty loss account(s).
This is an example of setting up your company to stop writing off warranty losses. If your business system cannot provide this information, many excellent third-party products integrate with most of our industry’s business systems and will ease your journey. The cost of your investment in the project, and perhaps the third-party product, will be returned quickly.
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Aged Work Orders
Aged Work Orders
Guest writer John Dowling is back this week to cover the topic of timing and timelines in your dealership in “Aged Work Orders.”
How long or how many days should it take to complete a repair on a customer’s machine? How many days does it take for your service department to close out a service work order? I have been asked the ideal number of days or average days to close a work order. The answer to that question is less than what it is now. However, many days it takes your service department to close out a work order, it’s too many! Unless you’re running a perfect service department. If that’s the case, stop reading and forward this to somebody else to read.
An aged work order is a work order over 30 days old. Depending on your location and industry, this number may go up or down, but 30 days is a good rule of thumb. Aged work orders should be a concern at every level of management within a dealership. The dealership that aged work orders are not a concern at every level of management, that dealership will struggle with cash flow, profitability, and customer satisfaction. These are all the symptoms of aged work orders.
How do we address or correct an aged work order problem? One way we should not address it is by criticizing the service manager, making many threats, shouting, screaming, and telling them to fix the problem. That rarely works. Most service and branch managers need a better understanding of the service process. They believe that service managers’ job is to fix equipment, and that’s partially true. It’s a technician’s job to fix equipment. It is the service manager’s job to manage the process of repairing the customers’ equipment—similar roles or jobs but not the same.
We must break down the service process to discover where the bottlenecks and issues are causing our prolonged work order lifecycle. A prolonged lifecycle will lead to an aged work order. How have I broken down the service process? Well, I’ve broken it down into ten steps or stages. In my book Service by the Boxes, I refer to these steps as boxes. We are looking for how many days it takes to move the work order through each step or box.
We need to know how many days it takes from the day the customer drops off his piece of equipment at your dealership to open a work order. If it takes more than 24 hours, that is too long. All work orders should be opened the same day the equipment is dropped off.
Once the work order is opened, how many days does it take to have that work order assigned to a technician and the technician to start the diagnostics process? This must occur within 24 hours to be best in class.
After the technician has diagnosed the equipment and created a parts list, how long does it take your parts department to estimate the parts? Parts estimates should be completed daily.
How many hours does it take for the service department to complete the service estimate and get the customer’s approval? This should occur within 24 hours of the parts estimate being created.
When the estimate has been approved, the required parts should be ordered on the same day. How long does it take your parts department to order approved parts? If it is days or weeks, you have a problem.
Once the parts have been received, do you have an assigned location to stage them for the technician? What is the process of informing the technician or the service manager that their ordered parts have been received? How long does it take? I hope the parts were staged the same day they were received.
This next stage of the work order process usually kills most service departments, especially those struggling with aged work orders. Once the technician receives the parts and completes the repair, how many days, if not weeks, does it take your technician to turn in a completed service report? Technicians should complete and turn in service reports the same day they complete the repair without exception.
Once the service report is turned in to the service manager or office, how long does it take them to process, i.e., close the work order? I have seen service managers hold on to completed work orders until the last week of the month before they even start processing them. Completely asinine. Completed work orders should be closed within 24 hours if not on the same day the service report is turned in. All the work has been done; we need to close the work order. That’s cash just sitting in your service office.
After the work has been completed and the work order has been closed, how long does it take to collect payment for the repair? This may be the most crucial step in the entire process. It does not matter how efficient your technicians are, how many turns your parts department has, or even if your service manager keeps all his work orders up to date. It is all for not until you collect the money. The transaction is complete once you get paid.
So, how many days should a work order’s life cycle be? Run a report to find the average age of your work orders. Your work order life cycle should be less than that number. Review the steps we discussed and record how long your service department takes to get from step to step or box to box. Ask why it takes so long and find ways to decrease the time. It is challenging work, but it will pay dividends in cash flow, profitability, and customer satisfaction.
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The Current U.S. Labor-Market Conundrum
The Current U.S. Labor-Market Conundrum
Guest writer Edward Gordon has returned with his February Gordon Report: “The Current U.S. Labor-Market Conundrum.”
The February 2024 BLS jobs report showed a surge of 353,000 jobs added in January, more than double than what was predicted in economic surveys. This follows a gain of 330,00 jobs in December. Another surprise in this February report is that average hourly wages grew rather than holding steady. Over the past year they have grown 4.5 per cent. What factors may be behind these unexpected numbers?
An average of 10,000 workers from the large baby-boomer population have been retiring each day. This year the average will grow as the baby-boomer retirements peak. This flood of retirees will continue until 2030. Therefore, this year and until the end of this decade, many job openings will arise from the need to replace retirees.
In at least some sectors of the economy, it appears that employers are raising wages to find workers with the skills they need. Chief Economist Bill Dunkelberg of the NFIB (an association of small business owners) reported on their January survey, “owners continue to raise compensation to retain and attract workers with the skills and willingness to do the job, but hiring remains a struggle in a tight labor market.” So far, this strategy has not been very successful. In that same survey 39 percent of the respondents reported having unfilled job openings. Members of the Association of General Contractors also have high levels of unfilled jobs despite providing a wage premium of almost 19 percent over that of the average for private-sector production employees.
In some cases, higher wages may attract people who have not been participating in the labor force to seek a job if the pay level would offset the costs of childcare, a long commute, or obtaining additional training. A recent Korn Ferry survey of job seekers, however, found that many applicants do not have the skills required for open jobs. In some case this is due to the development of new types of jobs with recently updated skill sets.
The above data points to a current labor market with a significant skills-jobs mismatch. But the Training Industry Annual Survey of 2023 reported that business investment in employee training remained flat. Going forward, predictions are that companies will cut their training budgets. The irony is that one way or the other business will have to pay more to find skilled workers either through continuing to raise wages or by investing in more in-house or collaborative training programs.
Edward E. Gordon is the founder and president of Imperial Consulting Corporation in Chicago. His firm’s clients have included companies of all sizes from small businesses to Fortune 500 corporations, U.S. government agencies, state governments, and professional/trade associations. He taught in higher education for 20 years and is the author of numerous books and articles. More information on his background can be found at www.imperialcorp.com. As a professional speaker, he is available to provide customized presentations on contemporary workforce issues.
We invite you to submit your questions or comments by email or calling us in Chicago at 312.664.5196.
Thank you for your continued interest in our publication.
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Rollin’ with the Wrenches
Rollin’ with the Wrenches
Our newest guest writer at Learning Without Scars, Kenneth Johnson joins us this week ready to close the deal! In his inaugural blog post, “Rollin’ with the Wrenches,” Kenneth takes readers through the world of Field Service Technicians. But first, here’s Kenneth in his own words:
I CLOSE therefore I AM sums up my work mantra. I am the epitome of what every commercial truck buyer fears. The “Master Peddler” “The Salesman “The Smooth Talker with the golden tongue. Formally trained, armed with superior product knowledge, charm and wit plus an arsenal of tools that will separate you from your wallet. The average consumer is no match for folks like me.
I’m currently a Regional Sales Manager for a nationally recognized Vocational Body Builder with prior employment as a State Licensed Professional Financial Planner, Insurance Agency Owner, Auto Dealer General Manager, Fleet Director, Finance Director, Certified Vehicle Leasing Executive, Director of Business Development for DBE Federal Contractor, NABCEP Board Certified Sales Professional and Small Business Owner,
After four decades in the relentless pursuit of prey I have decided to seek a new path and put my skills to work for you. Remember the Terminator started out as a really bad Dude!
Rollin’ with the Wrenches: Navigating Hurdles in the World of Field Service Technicians
Hey gearheads, grease monkeys, and heavy equipment wizards! Buckle up for a more extended journey into the fascinating realm of Field Service Technicians, where fixing trucks and repairing yellow iron brings a heap of challenges. From critical part shortages to soaring prices and not enough hands on deck, today’s Field Service Technicians are steering through some serious twists and turns. Let’s dive even deeper under the hood and explore what’s revving in this extended road trip!
Running Low on Truck and Yellow Iron Bits: The Great Parts Hunt Continues
So, you know that frustrating feeling when you’re elbows deep, fixing a machine and suddenly the part you need is playing hide and seek? Well, that’s the prolonged situation for Field Service Technicians everywhere. Parts are scarcer than ever, leaving our mechanics stuck in a real pickle. Trucks and heavy equipment remain in limbo, waiting for those elusive missing pieces – downtime that nobody enjoys.
DIY Solutions Evolve:
As our truck and heavy equipment fixers, the Field Service Professional Technicians, continue their journey, thinking local is just the start. They’re now diving deeper into innovative approaches, like forming local part-sharing networks and collaborating with neighboring mechanics to keep those wheels and bulldozer treads rolling.
Price Hikes: The Budget Buster Persists
Have you ever noticed the numbers on the gas pump going up faster than your heartbeat during a close call? Well, Field Service Technicians have been living this reality. Inflation continues to pinch pockets, turning every wrench turn or PM into a financial head-scratcher.
Navigating Financial Waters:
Our unsung heroes are mastering the art of financial finesse. Balancing the books becomes an even more intricate dance as they figure out how to tighten belts without compromising the top-notch fixin’ they’re known for, both on trucks and heavy yellow iron.
Not Enough Wrench Wizards: The Search for More Hands Continues
Picture this – you’re up to your ankles in mud and engine grease, and you look around, only to realize your partner in crime is MIA. That’s the ongoing reality for Field Service Technicians; there just aren’t enough hands to get the job done.
More Hands-on-Deck Strategies:
To fill the wrench-shaped gaps, our truck and heavy equipment champs, the shop owners, mobile equipment repair business owners, are not just recruiting; they’re orchestrating strategic training sessions, pulling in new recruits, and maybe even giving their teenager a crash course in tire changing and bulldozer tune-ups.
Cruisin’ through Challenges: Shifting into High Gear with Service Trux USA Directory
All right, enough doom and gloom – let’s explore even more solutions. Field Service Technicians are diving headfirst into new tech, with tools like the Service Trux USA Directory now playing an even more pivotal role. It’s like a GPS for truck and yellow iron fixes, helping them not just find the right path but establishing new routes in this maze of ongoing shortages and price hikes.
On-Highway Truck Repair vs. Heavy Equipment Technicians: Unveiling Unique Challenges and Common Ground
While both groups, on-highway truck repair mechanics, and heavy equipment technicians, face similar challenges, the distinctions are becoming even more apparent. On-highway mechanics navigate specific truck parts shortages, while heavy equipment technicians, specializing in yellow iron like trenchers, excavators, bulldozers, and cranes, face unique diagnostic and repair challenges for these robust machines.
And here’s a pro tip: collaboration remains the secret sauce. By sharing more tricks of the trade and lending a helping wrench, Field Service Technicians are building a community that’s as tight knit as a lug nut.
Unveiling the Service Trux USA Directory: A Deeper Dive into Tech-Driven Solutions
Now, let’s shed a brighter light on the Service Trux USA Directory. This tech marvel is not just a tool anymore; it’s a beacon guiding Field Service Technicians through the challenges of their ever-evolving landscape. It’s their go-to resource, their GPS navigating them through the digital highways of data aggregation, Business development and strategic sourcing.
Leveraging the Directory:
As they harness the power of the Service Trux USA Directory, Field Service Technicians are not merely accessing information; they’re orchestrating smoother operations, reducing downtime, and streamlining collaboration within their community.
Collaborative Resilience: The Heart of the Field Service Technician Community
So, fellow road warriors and heavy equipment maestros, as we extend this journey, next time you see a Field Service Technician at work, give ’em more than a nod. They’re not just fixing trucks and heavy equipment; they’re conquering a highway and construction site full of evolving challenges, keeping our wheels and yellow iron turning.
Extended Cheers:
Here’s to the ones who keep the world rollin’ and heavy metal rumblin’, expanding their toolbox of solutions, and revving up for an even more resilient future! 🛠️🚚🚜
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What Would You Have Done
What Would You Have Done
Thomas Barry – ‘Tom’ has long taken to heart the fortuitous occasions and high value of being prepared and focused when the opportunity to be considered, called upon, and compete align. This was a necessary mindset fostered and forged when seeking to make the youth baseball, soccer, hockey, and chess tournament teams while growing up in both Massachusetts & New Jersey having moved several times. He makes his first blog post for Learning Without Scars with, “What Would You Have Done?”
Attending High School in both MA & NJ, illuminated the precept that demonstrating your value was only evidenced by your repeatedly proven capacity to generate stellar results within those brief moments of timely relevance. As does earning a spot on the Soccer & Baseball Teams within new schools with 5,000+ students. The application of this internalized set of motivators has proved useful and beneficial as it has translated into a long list of both individual and corporate leadership business awards. Recognitions, bestowed for sales, marketing, share of market, and comprehensive KPI metric performances repeatedly recognized by world leading OEMs, heavy equipment stocking distribution businesses, as well as governments on Local, State, and Federal levels; for National, North American, and Global Sales and Export performances.
A Graduate of the University of California, Berkeley, there… Tom applied for and was accepted into a highly selective Independent Studies degree program within the College of Letters & Science while also a member of the PAC10 Cal Baseball Team. His focus was professional sales and as such was permitted to take coursework from all 14 UCB campus colleges including 2 years of MBA studies in the Principles of Corporate Finance, Engineering, Business Law, Accounting, Statistics, Computer Science, Political Economies of Industrialized Nations, Sentential Calculus, and the completion of a culminating Senior Thesis which earned an ‘A’.
Tom and his wife Eileen met in High School and are now married 36 years and reside in Columbus, OH. Their two adult sons were very active in Travel Soccer & Tennis which initiated a great band of parents that routinely gather for the next Ohio State Buckeye Football or Columbus Crew Soccer Games!
You can find Tom on LinkedIn.
A true-life heavy construction equipment sales presentation story shares insight of contrasting styles of differentiating value propositions.
Several of the competing OEM distributorships’ senior leadership emerged from behind their desks to present a product of three (3+) of the world’s leading competitive OEMs to my unit.
Unique styles and approaches collided in a high-profile opportunity wherein a purchase of a 147,000 lbs. excavator is on the table to be selected by the winner ‘Bill’ of a State Government low bid public service energy project!
Preamble: Within a typical sales career launch… many representatives will start off at a level of skillset capacity descriptively referred to that of Unconscious Incompetence. If you’re slow to embrace and internalize key precepts available from training… you’ll likely be lacking at your needed industry skills, and you will often not even know it or know why. Nevertheless, with some initiative and persistent engagement, you’ll advance to a level of Conscious Incompetence wherein you’ll perform under par, and you’ll be aware that you’re not as good or as effective as desired from yourself and others. Self-awareness is needed!
As you practice, drill, and rehearse your early skillset, pivotal personality traits, product knowledge, and practiced presentation choice of words nuances, you’ll start to notice and appreciate marked strides towards improvement. The results will often equate to some level of competence along with periodic moments of success that fuel an onwards and upwards spirit to endeavor towards continuous improvement!
Continue to hone your skills and you’ll reach a level of Conscious Competence…You’ll be prepared and skilled and self-aware of such. Down the road…staying the course and with a mind to continuous improvement… and striving for excellence… the phase of your career wherein you attain Unconscious Competence awaits. Therein is the stage at which you can earn self-satisfaction and rewarding recognition levels familiar to many that enter the arenas of sports. More importantly, you’ll find that the professional field of sales is a lot of fun and full of gratifying moments of satisfaction of helping to uniquely solve customers’ problems! The journey of taking a Brand Mark to another level of Brand __________!
This capacity for professional growth and career satisfaction will be a function of your capacity to act with sincerity, to do more for your customers than anybody else is willing to wield to deliver, so that they and their opportunities can be as successful as possible!
As I waited in the entry foyer… of an existing customer’s visitor’s chair that morning, I was greeted by the President’s Office Manager, whom I knew quite well of this fast-growing construction firm; on the matter of a recently secured heavily competitive bid for a large public service energy project. The very familiar banter which was commensurate between us was suspended as the President emerged from his office and spoke with an energetic/pleasant business tenor…
“Busy day Tom, I have no time for pleasantries… I’d like to meet with you today…I’ve got a meeting set already to meet with (OEM Distributor Competitor #1) in 15 minutes from now – this morning… who, by the way, isn’t happy that you sold me the last 20 machines I’ve purchased. They are embarrassed and have assured me that their final pricing and enthusiasm expressed is going to reflect that point to say the least. I’m also meeting with (OEM Distributor Competitor #2 & #3) this afternoon as they each related to me this order is going to be theirs…that should be interesting. Do you want to meet me before I meet with (OEM Distributor Competitor #2 & or #3)?”
I replied, thank you for asking but no thank you Bill, … I’ll be pleased to take the last appointment of the day. I’ll catch up with you at 5:00PM, if that works, as I doubt that my perspective and comments will need to take very long…and I can answer any questions you may have that stemmed from your prior meetings.
Bill replied: “OK… Sounds good Tom, see you then.”
Upon my return, I arrived ten minutes early and soon was summoned to sit across from the Contractors’ President’s desk to relate the following with a high degree of matter-of-fact confidence. “Bill, as always thank you for your time to speak with you and for the opportunity to be compared so that our value can be identified – as always that is highly appreciated! Bill as you are keenly aware… you’re buying a tool for a job. The tool you need for this job is very soon to start am I correct? Bill replied Yes!
I added, the importance of this job is enormous. Everyone will be watching, and this will likely be the most important job in the history of your company…am I correct in saying that? Bill replied ‘Yes’! If you would be so kind Bill, please share just a bit about your project… is it the same as what I’ve heard (he knew I assisted with his bidding team of engineers)? Indeed, it was the same.
I summarized and related OK Bill, thank you for that feedback as it is largely the same specs as I had recalled from my prior meeting notes. {As I was about to begin my presentation comments, Bill interrupted me and stated} …
“Tom your proposal to me is at $675,000 for your excavator package vs. Competitor #1 at $545,000 and Competitor #2 is at $475,000 and Competitor #3 is at $425,000 with an additional caveat of “Make me an Offer” comment from their V.P. of Sales… who related that the factory is going to make sure that this deal is theirs! (Bill added) … ‘that has turned my head…Tom, you know I like you… so let’s keep this conversation about meat and potatoes because that is at least $250,000 we’re talking about.”
Thank you for that feedback, Bill… much appreciated. I took the liberty to stop by the facilities of Competitor #2 & #3 today. I drove through their equipment inventory yards as if I owned the place and despite some of the looks, I got, I took these pictures of their machinery, buckets, and excavator arm inventory positions on their respective grounds as I wanted to assess their capacity to support you considering the difficulty and importance of this project. We’re talking about very hard shale & dolomite seams that cannot be blasted as I recall from conversations with your estimators (I referred to them by names)!
Competitors #2 & #3 have just one bucket each in inventory… and that is only the ones already mounted onto their only inventoried excavator unit they are quoting you. They both have 65” soil bailing buckets installed – not matched for the early job phases. You’re going to need quick disconnects on the bucket couplers with a capacity to switch between at least 3 buckets so that you can maximize your productivity and reduce the amount of stone that will support the trench with the appropriate amount of stone bedding and backfill. You will likely be entertaining the prospect of even taking a 2nd longer arm for the excavation effort as this job is pulling triple boxes for safety requirements as you near the end. This shale you are excavating at the bottom of the trench will require a rock bucket that is a $55,000 item. Such bucket specs take 6 weeks to order and arrive if all goes well.
As to Competitor #2 & #3, offering… forget about the very close machinery specifications on brochures and the bucket issues which are significant…and the critical and hoped for parts and service support desired for a limited number of units present in the region, as compared to what you are already aware of and confident of with our support. Nobody knows Competitors #2 & #3 offer better than the guys who pitched you on it earlier today. As to Competitor #3, do you really want to consider owning a machine that costs over $400,000 wherein your opportunity to sell it when you’re done with this project has to include the line “Make me an Offer”? Bill, Competitor #2, hasn’t sold a single 75,000 lbs. or larger excavator in this State since the undercarriage wore out on their 100,000 lbs. excavator in 1,800 hours in the next county over which required the purchase of a new $45,000 undercarriage for the project to be completed. This isn’t a dozer working in high-speed reverse in sand and should never see that kind of wear. Their undercarriage and Triple Grouser Shoe specs are not only thinner, the material of their cast pins, bushings and pads are suspect at best. I have the name and number for that owner who would be only too happy to take your call to share that experience and his ‘lessons learned’ story.
As to Competitor #1, knowing they would be touting the glory of their Market Resale Value… I shared ‘keep in mind that 70 Units of this size excavator sold in our state over last decade’. ‘We have sold 56 of them…they have sold 14, and Competitors #2 & #3 haven’t sold any. Trade in Value – the opportunity to take it in trade on the next tool that you are required to have as this job concludes is of enormous relevance and importance. On that note we’re clearly a better designed machine and value as Competitor #1 doesn’t measure up and that is why we have sold 56 out of the last 70 units in this size class and 56 out of the last most recent 59 units sold. Again, you’re buying a tool for a specific job!’
Moreover, Resale Values for used equipment reflect all buyers’ preferences for new if they could afford them. For all such reasons our offer is the preferred machine of an informed buyer. Our confidence in keeping them in our fleet and supporting them includes our buying them as or if they make it to an auction. Our preference is to take them in trade… which would also position you to save on the taxes when buying new!
Just as you have purchased the last 20 machines from us, Bill, this next unit is the right decision… if and when you decide the unit is surplus to your next project needs and seek to pick up the next set of tools best matched, you will know that we have every interest to get that unit back for the right price that reflects the proven and established demand for that product in this State. The breadth of our product offering is well positioned to support your future needs. Note: I have 54 buckets in inventory for this size excavator along with that specialty rock bucket we discussed, numerous arm length choices, along with 16 of these excavator units in stock and in my rental fleet.
{NOTE: In what follows below is referred to as “An Alternate of Choice Closing Question}:
‘Bill, I know you have a quick start date for this project, so do you want the excavator delivered to the site by this Friday morning or afternoon or is Monday soon enough and which of the three buckets do you prefer to have mounted to start the job?’ (upon which time I shut my mouth and didn’t utter a word for the next 7 seconds of room silence) … Bill paused, sat back in his chair shook his head side to side and smiled, & then nodded… he stated “Wow… Tom! I did not think I would be saying this today… Monday morning… and the Rock Bucket so to have a wow factor at the Groundbreaking – there is going to be some Press & Dignitaries’ there” – he just purchased a $675,000 excavation package!
The satisfaction of a favorable outcome attained is a function of earning the customers endorsement of your opportunity to be compared in the process of addressing their needs. Gently leading that customer to identify and navigate the merit of your differentiating value proposition to a new and improved reality of added value – The Life-Cycle-Cost assessments of both ownership and time tested/trusted business relationships of Brand Insistence!
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EI vs. AI: Emotional Intelligence vs. Artificial Intelligence
EI vs. AI: Emotional Intelligence vs. Artificial Intelligence
This week, our guest writer John Andersen helps us see the clear difference between reality and the artificial in “EI vs. AI: Emotional Intelligence vs. Artificial Intelligence.”
With all the technology and buzzwords floating around it is easy to get lost, confused or sometimes plain lied to. Marketing spin, new names and great acronyms can supplant common sense and knowing better. Manufactured solutions are different than organic solutions and the commitment to following it is also vastly different.
Let me give you an example. I have the good fortune to live minutes from Walt Disney World for much of the year. While I am getting a little old for most of the rides and have done everything you can imagine, I still manage to go to one of the parks about once a week. I have taken to studying how they manufacture a guest experience. From avoidance of shadows in high photo locations to the smell of popcorn that seemingly is pumped into the air during parades or fireworks. Subtle music, barely audible in quiet zones to bring down your pulse rate, or rhythmic tones during a line cue to help build anticipation. The imagineers continue to tweak, study, and implement new ways to enhance the guest experience. The intel they gather and maintain on guests is astounding, overwhelming and valuable. They spend millions of dollars maintaining the experience and finding new unique ways to entice the money from your wallet and keep you onsite and engaged. If it’s all you know and all you see, you could believe it is real, but eventually your inner voice will call out, “Artificial!!!”
In contrast, this week I have parked my home on the seawall of the Atlantic Ocean. There are still thousands of people around me as we prepare for the Daytona 500. Much like Disney, it’s all business and profit driven. At the urging of a wise old friend, I got up to see the sunrise since there is nothing between me and the ocean except thirty yards of sand. It was predawn when I went outside and stood on the sea wall. On both left and right were people standing quietly with cups of coffee, dogs, and partners. Nobody looked awake and all were silent. It started as a pink glow but within minutes the sun was breaking from the water and fully exposed. My face warmed and the hairs on my arms stood up. It was like I was being filled up with faith, hope and energy. Bathed with light that nobody else had seen yet. We all stood there for 20 minutes or so before one by one our tanks read full, and we left to start our day. Sunrise is so much different than sunset. It radiates peaceful enthusiasm, and positive momentum. A sunrise sends specific signals to the brain and body that can’t be manufactured. In this case your inner voice doesn’t call out, it whispers…” Thank you.”
That’s the difference between AI and EI. Artificial Intelligence versus Emotional Intelligence. AI will be pervasive in so many areas of your life over the next decade. It will change the way you do business and how you operate inside and outside of work. You can expect higher levels of service, refined experiences, and likely better and cheaper products. In this utopian environment setting yourself apart will require something organic, real, and different. That requires a skill AI can’t learn. That is where the great will become the exceptional and businesses and customers alike will seek you out. That is harnessing emotional intelligence. We all have it, but the drive is being overshadowed by the noise of AI. Finding a blend of both will lead you to the top of your potential markets and success. Last week I attended a symposium virtually with the greatest leaders in AI and technology. Each had a viewpoint about how technology would change the world for the better and the worse. However, one phrase stood out and much like the sunrise this morning, I can’t ignore what it meant. AI will never supplant EI because AI doesn’t have a gut. Surround yourself with data, predictive models, and AI of all types. Use it to elevate your abilities, skills and services but seek out EI. EI is found in Passion, Wisdom, and Instinct where AI is based on Data, Intelligence, and Modeling.
This brings me back to my Daytona 500 outing. A computer could generate the race, but it’s the spirit of the drivers that engage us. Like the sunrise, you need to feel it!
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