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Archive for November, 2008

Practicing to be Lucky

25 Nov

One book that is making a significant buzz of late is “Outliers” by Malcolm Gladstone. It is a good read, a blend of sociology and pop psychology mixed with anecdotes that tries to explain why some people achieve great success and why others don’t.

As always, I started to ponder how to relate this book to our industry and even just to myself. Many of us are witnessing significant changes and economic shifts within the auto glass field as well as the nation that not only affect business but ourselves as well.

One of Gladstone’s premises seems to be that luck plays a large role in helping certain persons attain eminence. In just taking the random act of being born, he cites examples of those born in certain eras or neighborhoods and even certain months of the year helped specific individuals more likely to make gains in certain fields or be failures in others.

To the owners out there: How many incidents of good luck took place that you were able to benefit from? I know of one young shop owner who was about a month away from having to close down when the owner of a major local dealership had a flat tire in front of his store. The glass shop owner helped the guy change the tire and the dealer went back to his business. Later that day, the dealership’s glass vendor botches a service job. The owner calls the Good Samaritan shop and invites him to fix it, which he does and is then given the account. From there, his shop goes on to earn the respect of several insurance and auto accounts based on the recommendations of the dealership and its owner. That incident took place more than 20 years ago and the business is still going strong.

What makes an auto glass business successful? The odds of any new business surviving more than two years are long. Just defining success can be hard since the odds of survival are against you in the first few years. One can elect to stay small. To stay open for 30 years, have the respect of the community it services along with bringing financial security to the owner and its employees has provide a certain measure of accomplishment.

Obviously those who can expand and open a chain of installation shops either regionally or nationally may redefine the term of “success.” However, in my almost four decades within the industry, I have seen kingdoms rise and fall as we did this year with Diamond. There have been manufacturers who bought up numbers of shops only to close them after a few years. I have seen franchises sold and then become worthless or acquired and reformed. Belron certainly did not have early success establishing a presence here in the United States. It is well known that they had some famous stops and starts over the past 20 years.

Call it luck when back in 1991 Garin Staglin took over as CEO of a pre-Belron Safelite. With his prior experience at ADP, he recognized the opportunity of assisting insurers with computerization and glass claims and the germination of Safelite Solutions became fact. While deplored by many independents, that segment of the business has grown substantially over the years.

Another area that “Outliers” addresses is that hard work oftentimes is far more important than native intelligence. He states that familiarity with your area of expertise by laboring at least 10,000 hours of practice to gain that mastery is far more important then a high IQ. Gladstone uses Mozart the musical child prodigy as an example whose early work paled in both sophistication and technical expertise with what he composed later in his teens. We all can make the claim that the 10,000th windshield was far less of an intellectual stretch and stress than the first one we ever had to do on our own. So being smart is certainly an asset, but the author maintains that practice, practice and more practice is a far more valuable tool for success than almost anything else.

One thing that interests me is future trends. What will the auto glass business be like in 10, 20 and even 50 years? Who will survive? Who will evolve? What sort of technology, materials and applications will be developed? Who won’t exist and why are questions that intrigue. This industry has not within my memory or experience ever remained static. History has taught us that empires rise and fall over time.

I strongly believe that there are people out there; some perhaps just being born that will shape this industry into a far different form than it is today. I just wonder if I’ll be “lucky” enough to appreciate the efforts. If not, I’ll just keep practicing reading my tea leaves.

Happy Thanksgiving to all!!

 
 

Bailout Blues

18 Nov

Is it just my imagination or is it that the auto glass industry is one of the very few that is not getting a bailout this year? What is wrong with us, folks? Don’t we deserve something?

The nation’s top nine banks sure scurried up the bar. Word has been coming out of Senate hearings that the money has been used to prop up their internal capitalization and not consumer credit. AIG actually took an encore and scored another $100 billion plus from the Feds. I actually commend their executives for their extremely fresh thinking to go back for seconds. I suppose that their revisionism was the result of a few spa treatments that removed toxic cognition from their brain passages bringing clarity and supplication. It’s concepts like these that deserve merit.

When you speak of merit in the world of corporate high finance, the term of executive bonus looms large. After all, where can one find a place where you can bring your company to its knees and then be rewarded with a $15 million bonus? Goldman Sach’s CEO said with a straight face this week that the company’s executive bonuses of $6 million ”will be much smaller this year.” He also testified that the bonus money was from funds already set aside and not related to bailout money it has already received. I understand. My government stimulus check didn’t go for massages, as it should have. It went to pay bills.

With the news this week that credit card companies are crying poor-mouth due to the slow paying habits of the credit addicts they created, Detroit became the white elephant in the Halls of Congress pleading for billions to prevent the Big Three from becoming the Big Zero. Now more than ever we in the auto glass industry have to rush to Washington with palms outstretched pleading for cash. After all, I see no reason for any of us to miss out on this corporate soup line. Feet don’t fail us now! Pushing any facade of altruism aside, auto glass needs to get ours first before somebody turns off the money taps.

The auto glass industry has had our own version of meltdown. Try to install an imported or even some domestically produced windshield, the fit and finish is such that meltdown is what the product deserves. Prices have dropped almost as fast as the current president’s popularity. Early this year, as fuel prices skyrocketed, we in the industry were caught in the “perfect storm” as costs escalated and our sales volume decreased. Many of our insurance firms claimed those cost increases really didn’t exist making reimbursement neither “fair nor reasonable.” Demands for NAGS discounts grew as well. I have this vision of TPAs and other cost containment-providing executives along with insurance company honchos all playing towel-snapping games in a Turkish steam room at some posh spa together. Trust me, corporate stress is not a pretty thing to watch.

This is my plan. It is my understanding that there are about 12,000 auto glass shops. If every one asks for a million dollars, the amount will pale in comparison to what has gone before us. In fact, what’s $12 billion anymore to the U.S. Treasury? Heck, I’m for income redistribution as long as enough of it comes my way. Some of us can sure use some deceptive referring of a seven-figure U.S. Treasury check with our names on it. Wanna solve the licensing problem? Just mandate certification in order to get federal funds. We’ll have so many new adherents it will look like draft day for the Iraqi army.

The auto glass bailout certainly could be a tricky thing. I’m sure “Columbus” will lobby for funds based on total retail outlets. Perhaps if you listen hard enough, you might hear whispers of “I should have waited two more months” coming from the neighborhoods around Kingston, Pa. If recent history is any proof, going bankrupt is the best thing a corporate glass chain can have happen to it, so who wants just a pile of money thrown at it? As this proposed bailout takes place, I wonder if the Secretary of the Treasury will be getting a phone call from the president of the Sino Glass Association asking to be included due to volume and income loss. Why not? Someone has to care about job losses in the Orient.

I’m not quite sure what I myself would do with my auto glass bailout money. Perhaps the best idea is to lease a Gulfstream jet for mobiles. Think of the fuel surcharge a company could assess on insurance claims. Some may balk at the implementation but I can sure see AIG paying it. They do know a little something about corporate high life. If not, I’m sure they could recommend a good golf course that has spa facilities.

 
 

On Personal Service

10 Nov

While playing in a golf tournament this weekend, I was the houseguest of another player who happens to be a dentist. Over dinner we somehow got on the topic of both of our businesses. It is truly amazing on how similar these two seemingly improbable occupations have in common. What is even more unforeseen is to agree on what makes both of our fields of endeavor successful. The consensus was that achievement was attained not just by craft proficiency but just as important was the ability to provide personal service to our clients.

The conversation started with my relating an incident that took place Friday afternoon. I had installed a windshield in a Nissan 350ZX as my first job of the day and had just completed my last at 4 pm when my phone rang. The owner of the ZX had come out to leave for home and found the rear view mirror hanging by its wiring. The factory-installed bracket had given way. I was 35 miles away and the customer was leaving for her home, which was 100 miles away in the opposite direction. In my view, it was my responsibility to fix it immediately, which I did by having her stay at work and I returned through Friday night rush hour traffic and re-bonded the bracket.

My friend responded with several stories of how standing by his work had cemented doctor-patient relationships for years. He told an anecdote of meeting a patient at a store and saw that a veneer of a front tooth had failed. The patient admitted losing it in a fight. My friend told him to come back and he’d fix it for free. The patient rewarded him with more than referrals.

A schoolteacher who was not his patient broke a front tooth. She went to her dentist prior to class and had it repaired. However, the repair failed within the hour. Office staff told the patient that the next open appointment was a week away. The teacher’s daughter, who was a patient of my friend, had her mother call him to check availability and was told to come in immediately where it was repaired much to the patient’s relief. That act has brought in thousands of dollars of referrals to date and made the teacher a client for life. Our stories confirmed to each other that it pays in the long run to give personal service and that our clients are genuinely surprised by getting it. The latter is a sad commentary on the state of business today.

Any successful enterprise does many things right and it takes both hard work and luck to maintain prosperity and profitability. It is like making a mosaic or building a brick wall. A business is comprised of many features and I maintain that giving good personal service can cement those attributes.

Salesmanship may gain customers but how they are treated both during and after the install process can lead to making them staunch clients. Using that same concept, how many of us are loyal to a particular distributor or adhesive system based on past performances and how they acted under the duress of warranty issues?

As personal proof, in a slow economy, six of my eight scheduled jobs this week are from past customers or are referrals from them. Many of you have built those kinds of relationships and we realize that it is vital in these times to maintain and benefit from them.

I will steadfastly maintain adherence to the maxim, “Do unto others as others do unto you,” and believe this is one of the best ways to run a business. If I may add the oft-used negative twist to this ethic of reciprocity to underline the importance of this tenet, which is, “What goes around comes around.” It’s a lesson many in this industry fail to remember … but should.